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Loans Receivable and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

Loans Receivable and Allowance for Credit Losses [Abstract]




	December 31, 2023				December 31, 2022
Real Estate:
Residential	$	316,546	19.7	%	$	298,813	20.3	%
Commercial		675,156	42.1			651,544	44.2
Agricultural		63,859	4.0			68,915	4.7
Construction		51,453	3.2			32,469	2.2
Commercial loans		200,576	12.5			187,257	12.7
Other agricultural loans		31,966	2.0			35,277	2.4
Consumer loans to individuals		264,321	16.5			200,149	13.5
Total loans		1,603,877	100.0	%		1,474,424	100.0	%

Deferred fees, net		(259)				(479)
Total loans receivable		1,603,618				1,473,945
Allowance for credit losses		(18,968)				(16,999)
Net loans receivable	$	1,584,650			$	1,456,946

Changes in the Accretable Yield for Purchased Credit-impaired Loans


	2022
Balance at beginning of period	$	1,884
Additions		—
Accretion		(710)
Reclassification and other		653
Balance at end of period	$	1,827

Information Regarding Loans Acquired and Accounted for in Accordance With ASC 310-30


	December 31, 2022
Outstanding Balance
	$	8,368
Carrying Amount
	$	6,290

Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment


	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
	(In thousands)
December 31, 2023
Individually evaluated	$	432	$	2,211	$	—	$	—	$	4,264	$	—	$	715	$	7,622
Collectively evaluated		316,114		672,945		63,859		51,453		196,312		31,966		263,606		1,596,255
Total Loans	$	316,546	$	675,156	$	63,859	$	51,453	$	200,576	$	31,966	$	264,321	$	1,603,877

The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment under ASC 310:


	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
	(In thousands)
December 31, 2022
Individually evaluated for impairment	$	—	$	402	$	—	$	—	$	61	$	—	$	—	$	463
Loans acquired with deteriorated credit quality		567		2,049		2,034		—		1,640		—		—		6,290
Collectively evaluated for impairment		298,246		649,093		66,881		32,469		185,556		35,277		200,149		1,467,671
Total Loans	$	298,813	$	651,544	$	68,915	$	32,469	$	187,257	$	35,277	$	200,149	$	1,474,424

Impaired Loans and Related Interest Income by Loan Portfolio Class

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable, under ASC 310.


			Unpaid
	Recorded		Principal		Associated
	Investment		Balance		Allowance
December 31, 2022	(In thousands)
With no related allowance recorded:
Real Estate Loans
Commercial	$	402	$	402	$	—
Commercial loans		11		11		—
Subtotal		413		413		—

With an allowance recorded:
Real Estate Loans
Commercial		50		50		50

Subtotal		50		50		50
Total:
Real Estate Loans
Residential						—
Commercial	$	402	$	402	$	—
Commercial loans		61		61		50
Total Impaired Loans	$	463	$	463	$	50

The following information for impaired loans is presented for the year ended 2022, under ASC 310:


	Average Recorded			Interest Income
	Investment			Recognized
			2022			2022
				(In thousands)
Total:
Real Estate Loans
Commercial		$	740		$	93
Commercial loans			24			—
Total Loans		$	764		$	93

Summary of Recorded Investment by Internal Risk Rating Systems

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogenous pools by internal risk rating systems, under ASC 326 (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2023		2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	78,496	$	131,948	$	112,102	$	65,949	$	72,480	$	186,116	$	13,332	$	-	$	660,423
Special Mention		1,300		411		243		1,331		-		6,157		1,579		-		11,021
Substandard		-		-		-		1,444		36		2,232		-		-		3,712
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	79,796	$	132,359	$	112,345	$	68,724	$	72,516	$	194,505	$	14,911	$	-	$	675,156

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	112	$	42	$	-	$	-	$	154

Real Estate - Agriculture
Risk Rating
Pass	$	2,635	$	12,509	$	5,433	$	7,606	$	7,746	$	24,654	$	522	$	-	$	61,105
Special Mention		-		-		-		-		399		490		150		-		1,039
Substandard		-		508		-		1,018		-		189		-		-		1,715
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,635	$	13,017	$	5,433	$	8,624	$	8,145	$	25,333	$	672	$	-	$	63,859

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	48,571	$	41,863	$	24,443	$	13,752	$	9,914	$	15,384	$	38,644	$	-	$	192,571
Special Mention		553		1,412		257		134		20		188		768		-		3,332
Substandard		-		126		342		656		-		49		3,500		-		4,673
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	49,124	$	43,401	$	25,042	$	14,542	$	9,934	$	15,621	$	42,912	$	-	$	200,576

Commercial loans
Current period gross charge-offs	$	-	$	32	$	24	$	4,856	$	-	$	41	$	-	$	-	$	4,953

Other agricultural loans
Risk Rating
Pass	$	2,670	$	5,286	$	3,251	$	2,912	$	2,373	$	3,836	$	11,091	$	-	$	31,419
Special Mention		-		-		2		185		86		-		155		-		428
Substandard		-		-		-		-		119		-		-		-		119
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,670	$	5,286	$	3,253	$	3,097	$	2,578	$	3,836	$	11,246	$	-	$	31,966

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	132,372	$	191,606	$	145,229	$	90,219	$	92,513	$	229,990	$	63,589	$	-	$	945,518
Special Mention		1,853		1,823		502		1,650		505		6,835		2,652		-		15,820
Substandard		-		634		342		3,118		155		2,470		3,500		-		10,219
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	134,225	$	194,063	$	146,073	$	94,987	$	93,173	$	239,295	$	69,741	$	-	$	971,557

The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of December 31, 2022 (in thousands):



			Special
	Pass		Mention		Substandard		Doubtful		Loss		Total
December 31, 2022
Commercial real estate loans	$	646,775	$	1,079	$	3,690	$	—	$	—	$	651,544
Real estate - agricultural		66,444		368		2,103		—		—		68,915
Commercial loans		186,966		184		107		—		—		187,257
Other agricultural loans		34,071		556		650		—		—		35,277
Total	$	934,256	$	2,187	$	6,550	$	—	$	—	$	942,993

Summary of Recorded Investment in Loan Classes Based on Payment Activity

The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due over 90 days and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed monthly. The following table presents the carrying value of residential and consumer loans based on payment activity (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2023		2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	27,446	$	62,178	$	57,691	$	35,357	$	16,406	$	87,951	$	29,085	$	-	$	316,114
Nonperforming		-		-		-		-		58		324		50		-		432
Total	$	27,446	$	62,178	$	57,691	$	35,357	$	16,464	$	88,275	$	29,135	$	-	$	316,546

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	34	$	-	$	-	$	34

Construction
Payment Performance
Performing	$	23,500	$	14,906	$	6,791	$	1,599	$	1,829	$	624	$	2,204	$	-	$	51,453
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	23,500	$	14,906	$	6,791	$	1,599	$	1,829	$	624	$	2,204	$	-	$	51,453

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	127,243	$	76,339	$	24,584	$	14,343	$	10,217	$	9,942	$	938	$	-	$	263,606
Nonperforming		111		404		118		31		41		10		-		-		715
Total	$	127,354	$	76,743	$	24,702	$	14,374	$	10,258	$	9,952	$	938	$	-	$	264,321

Consumer loans to individuals
Current period gross charge-offs	$	45	$	710	$	200	$	35	$	45	$	28	$	4	$	-	$	1,067

Total
Payment Performance
Performing	$	178,189	$	153,423	$	89,066	$	51,299	$	28,452	$	98,517	$	32,227	$	-	$	631,173
Nonperforming		111		404		118		31		99		334		50		-		1,147
Total	$	178,300	$	153,827	$	89,184	$	51,330	$	28,551	$	98,851	$	32,277	$	-	$	632,320

For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2022, under ASC 310 (in thousands):



	Performing		Nonperforming		Total
December 31, 2022
Residential real estate loans	$	298,327	$	486	$	298,813
Construction		32,469		—		32,469
Consumer loans to individuals		199,985		164		200,149
Total	$	530,781	$	650	$	531,431

Loan Portfolio Summarized by the Past Due Status


	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non-Accrual		Total Loans
December 31, 2023
Real Estate loans
Residential	$	315,224	$	877	$	13	$	—	$	432	$	1,322	$	316,546
Commercial		666,768		6,177		—		—		2,211		8,388		675,156
Agricultural		63,732		127		—		—		—		127		63,859
Construction		51,435		—		18		—		—		18		51,453
Commercial loans		192,988		3,170		154		—		4,264		7,588		200,576
Other agricultural loans		31,959		7		—		—		—		7		31,966
Consumer loans		262,578		865		163		—		715		1,743		264,321
Total	$	1,584,684	$	11,223	$	348	$	—	$	7,622	$	19,193	$	1,603,877



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non-Accrual		Purchased Credit Impaired Loans		Total Loans
December 31, 2022
Real Estate loans
Residential	$	297,350	$	187	$	223	$	—	$	486	$	896	$	567	$	298,813
Commercial		648,688		405		—		—		402		807		2,049		651,544
Agricultural		66,751		130		—		—		—		130		2,034		68,915
Construction		32,469		—		—		—		—		—		-		32,469
Commercial loans		185,485		71		—		—		61		132		1,640		187,257
Other agricultural loans		35,277		—		—		—		—		—		—		35,277
Consumer loans		198,893		853		239		—		164		1,256		-		200,149
Total	$	1,464,913	$	1,646	$	462	$	—	$	1,113	$	3,221	$	6,290	$	1,474,424

Summary of Carrying Value of Loan on Nonaccrual Status


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
December 31, 2023
Real Estate loans
Residential	$	432	$	-	$	432	$	-	$	432
Commercial		2,211		-		2,211		-		2,211
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		4,264		-		4,264		-		4,264
Other agricultural loans		-		-		-		-		-
Consumer loans		162		553		715		-		715
Total	$	7,069	$	553	$	7,622	$	-	$	7,622

Summary of Collateral Dependent Nonaccrual Loans


	Real Estate		Other		None		Total
December 31, 2023
Real Estate loans
Residential	$	432	$	-	$	-	$	432
Commercial		2,211		-		-		2,211
Agricultural		-		-		-		-
Construction		-		-		-		-
Commercial loans		49		4,215		-		4,264
Other agricultural loans		-		-		-		-
Consumer loans		-		715		-		715
Total	$	2,692	$	4,930	$	-	$	7,622

Allowance for Loan Losses and Recorded Investment in Financing Receivables



(In thousands)	Residential Real Estate		Commercial Real Estate		Agricultural		Construction		Commercial		Other Agricultural		Consumer		Total
Beginning balance, December 31, 2022	$	2,833	$	8,293	$	259	$	409	$	2,445	$	124	$	2,636	$	16,999
Impact of adopting ASC 326		(1,545)		5,527		(200)		388		(1,156)		3		(551)		2,466
Charge Offs		(34)		(154)		—		—		(4,953)		—		(1,067)		(6,208)
Recoveries		6		15		—		—		21		—		88		130
Provision for credit losses		91		(1,810)		(1)		136		4,850		(33)		2,348		5,581
Ending balance, December 31, 2023	$	1,351	$	11,871	$	58	$	933	$	1,207	$	94	$	3,454	$	18,968
Ending balance individually evaluated	$	—	$	—	$	—	$	—	$	—	$	—	$	135	$	135
Ending balance collectively evaluated	$	1,351	$	11,871	$	58	$	933	$	1,207	$	94	$	3,319	$	18,833

The following table presents the allowance for loan losses by the classes of the loan portfolio under ASC 310:



(In thousands)	Residential Real Estate		Commercial Real Estate		Agricultural		Construction		Commercial		Other Agricultural		Consumer		Total
Beginning balance, December 31, 2021	$	2,175	$	10,878	$	—	$	133	$	1,490	$	—	$	1,766	$	16,442
Charge Offs		(172)		(20)		—		—		(16)		—		(457)		(665)
Recoveries		130		82		—		—		46		—		64		322
Provision for loan losses		700		(2,647)		259		276		925		124		1,263		900
Ending balance, December 31, 2022	$	2,833	$	8,293	$	259	$	409	$	2,445	$	124	$	2,636	$	16,999
Ending balance individually evaluated for impairment	$	—	$	—	$	—	$	—	$	50	$	—	$	—	$	50
Ending balance collectively evaluated ‎for impairment	$	2,833	$	8,293	$	259	$	409	$	2,395	$	124	$	2,636	$	16,949

Loan Modifications Made to Borrowers


Loan Modifications Made to Borrowers Experiencing Financial Difficulty

Term Extension

	Amortized Cost Basis at December 31, 2023	% of Total Class of Financing Receivable	Financial Effect

Commercial real estate loans	$	4,321,547	0.64	%	Extended maturity date of loans by three to six months.

Total	$	4,321,547


Combination - Term Extension and Interest Rate Adjustment

		Amortized Cost Basis at December 31, 2023	% of Total Class of Financing Receivable		Financial Effect

Consumer loans to individuals	$	19,225	0.01	%	New loans were granted which extended terms for a weighted average of 34 months and rates were increased from a weighted average rate of 5.25% to a weighted average rate of 11.03%

Total	$	19,225