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Loans Receivable and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2024
Loans Receivable and Allowance for Credit Losses [Abstract]  
Composition of the Loan Portfolio

March 31, 2024

December 31, 2023

Real Estate Loans:

Residential

$

313,531

19.3

%

$

316,546

19.7

%

Commercial

691,755

42.7

675,156

42.1

Agricultural

62,309

3.9

63,859

4.0

Construction

47,409

2.9

51,453

3.2

Commercial loans

204,006

12.6

200,576

12.5

Other agricultural loans

31,439

1.9

31,966

2.0

Consumer loans to individuals

271,231

16.7

264,321

16.5

Total loans

1,621,680

100.0

%

1,603,877

100.0

%

Deferred fees, net

(232)

(259)

Total loans receivable

1,621,448

1,603,618

Allowance for credit losses

(18,020)

(18,968)

Net loans receivable

$

1,603,428

$

1,584,650
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

March 31, 2024

(In thousands)

Individually evaluated

$

487

$

2,200

$

—

$

—

$

111

$

185

$

752

$

3,735

Collectively evaluated

313,044

689,555

62,309

47,409

203,895

31,254

270,479

1,617,945

Total Loans

$

313,531

$

691,755

$

62,309

$

47,409

$

204,006

$

31,439

$

271,231

$

1,621,680

The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated:

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
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

March 31, 2024

Real Estate loans

Residential

$

312,201

$

511

$

332

$

-

$

487

$

1,330

$

313,531

Commercial

685,572

3,983

-

-

2,200

6,183

691,755

Agricultural

62,309

-

-

-

-

-

62,309

Construction

47,392

-

17

-

-

17

47,409

Commercial loans

202,679

1,194

22

-

111

1,327

204,006

Other agricultural loans

31,254

-

-

185

185

31,439

Consumer loans

269,579

589

311

8

744

1,652

271,231

Total

$

1,610,986

$

6,277

$

682

$

8

$

3,727

$

10,694

$

1,621,680

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
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, 2023

$

1,351

$

11,871

$

58

$

933

$

1,207

$

94

$

3,454

$

18,968

Charge Offs

—

-

-

-

(55)

-

(439)

(494)

Recoveries

42

102

-

-

—

-

27

171

(Release of) Provision for credit losses

(196)

(2,142)

26

(102)

835

74

880

(625)

Ending balance, March 31, 2024

$

1,197

$

9,831

$

84

$

831

$

1,987

$

168

$

3,922

$

18,020

Ending balance individually evaluated

$

-

$

-

$

-

$

-

$

-

$

-

$

69

$

69

Ending balance collectively evaluated

$

1,197

$

9,831

$

84

$

831

$

1,987

$

168

$

3,853

$

17,951

(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

—

(112)

-

-

(50)

-

(202)

(364)

Recoveries

6

6

-

-

6

-

26

44

Provision for credit losses

65

11

62

(94)

(87)

(45)

388

300

Ending balance, March 31, 2023

$

1,359

$

13,725

$

121

$

703

$

1,158

$

82

$

2,297

$

19,445

Ending balance individually evaluated
‎for impairment

$

-

$

-

$

-

$

-

$

1

$

-

$

-

$

1

Ending balance collectively evaluated
‎for impairment

$

1,359

$

13,725

$

121

$

703

$

1,157

$

82

$

2,297

$

19,444
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

March 31, 2024

Real Estate loans

Residential

$

487

$

-

$

487

$

-

$

487

Commercial

2,200

-

2,200

-

2,200

Agricultural

-

-

-

-

-

Construction

-

-

-

-

-

Commercial loans

111

-

111

-

111

Other agricultural loans

185

-

185

-

185

Consumer loans

675

69

744

8

752

Total

$

3,658

$

69

$

3,727

$

8

$

3,735

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 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 (in thousands):

 

Revolving

Revolving

Term Loans Amortized Costs Basis by Origination Year

Loans

Loans

Amortized

Converted

March 31, 2024

2024

2023

2022

2021

2020

Prior

Cost Basis

to Term

Total

Commercial real estate

Risk Rating

Pass

$

11,173

$

80,240

$

130,611

$

114,116

$

66,212

$

253,363

$

13,664

$

-

$

669,379

Special Mention

-

1,300

624

76

1,321

6,134

2,722

-

12,177

Substandard

-

-

2,944

3,141

1,435

2,679

-

-

10,199

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

11,173

$

81,540

$

134,179

$

117,333

$

68,968

$

262,176

$

16,386

$

-

$

691,755

Commercial real estate

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Real Estate - Agriculture

Risk Rating

Pass

$

1,154

$

2,628

$

12,369

$

5,391

$

7,502

$

31,805

$

515

$

-

$

61,364

Special Mention

-

-

-

-

-

795

150

-

945

Substandard

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

1,154

$

2,628

$

12,369

$

5,391

$

7,502

$

32,600

$

665

$

-

$

62,309

Real Estate - Agriculture

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Commercial loans

Risk Rating

Pass

$

16,042

$

42,669

$

37,276

$

23,691

$

12,591

$

23,602

$

39,648

$

-

$

195,519

Special Mention

-

529

1,352

222

110

139

544

-

2,896

Substandard

-

-

2,970

610

47

49

1,915

-

5,591

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

16,042

$

43,198

$

41,598

$

24,523

$

12,748

$

23,790

$

42,107

$

-

$

204,006

Commercial loans

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

4

$

51

$

-

$

-

$

55

Other agricultural loans

Risk Rating

Pass

$

561

$

2,592

$

4,817

$

3,075

$

2,778

$

5,445

$

11,752

$

-

$

31,020

Special Mention

-

-

-

1

-

153

80

-

234

Substandard

-

-

-

-

185

-

-

-

185

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

561

$

2,592

$

4,817

$

3,076

$

2,963

$

5,598

$

11,832

$

-

$

31,439

Other agricultural loans

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Total

Risk Rating

Pass

$

28,930

$

128,129

$

185,073

$

146,273

$

89,083

$

314,215

$

65,579

$

-

$

957,282

Special Mention

-

1,829

1,976

299

1,431

7,221

3,496

-

16,252

Substandard

-

-

5,914

3,751

1,667

2,728

1,915

-

15,975

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

28,930

$

129,958

$

192,963

$

150,323

$

92,181

$

324,164

$

70,990

$

-

$

989,509


‎

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
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

March 31, 2024

2024

2023

2022

2021

2020

Prior

Cost Basis

to Term

Total

Residential real estate

Payment Performance

Performing

$

1,177

$

28,172

$

62,759

$

56,633

$

34,427

$

100,804

$

29,072

$

-

$

313,044

Nonperforming

-

-

-

-

-

468

19

-

487

Total

$

1,177

$

28,172

$

62,759

$

56,633

$

34,427

$

101,272

$

29,091

$

-

$

313,531

Residential real estate

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Construction

Payment Performance

Performing

$

4,881

$

27,558

$

11,894

$

474

$

-

$

292

$

2,310

$

-

$

47,409

Nonperforming

-

-

-

-

-

-

-

-

-

Total

$

4,881

$

27,558

$

11,894

$

474

$

-

$

292

$

2,310

$

-

$

47,409

Construction

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Consumer loans to individuals

Payment Performance

Performing

$

27,817

$

119,375

$

70,081

$

22,256

$

12,685

$

17,370

$

895

$

-

$

270,479

Nonperforming

-

129

400

154

21

48

-

-

752

Total

$

27,817

$

119,504

$

70,481

$

22,410

$

12,706

$

17,418

$

895

$

-

$

271,231

Consumer loans to individuals

Current period gross charge-offs

$

-

$

67

$

277

$

72

$

23

$

-

$

-

$

-

$

439

Total

Payment Performance

Performing

$

33,875

$

175,105

$

144,734

$

79,363

$

47,112

$

118,466

$

32,277

$

-

$

630,932

Nonperforming

-

129

400

154

21

516

19

-

1,239

Total

$

33,875

$

175,234

$

145,134

$

79,517

$

47,133

$

118,982

$

32,296

$

-

$

632,171

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
Loan Modifications Made to Borrowers

Principal Payment Deferral

Amortized Cost Basis at March 31, 2024

% of Total Class of Financing Receivable

Financial Effect

Commercial real estate loans

$

6,509

0.94

%

Deferred Principal for 6 months

Commercial loans

3,243

1.59

Deferred Principal for 6 months

Consumer Loans

30

0.01

Deferred Principal for 6 months

Total

$

9,782

Principal Payment Adjustment

Amortized Cost Basis at March 31, 2024

% of Total Class of Financing Receivable

Financial Effect

Commercial real estate loans

$

399

0.06

%

Reduced principal payment plus interest due monthly with balloon payment to be made in August 2024

Total

$

399

Combination - Term Extension and Interest Rate Adjustment

Amortized Cost Basis at March 31, 2024

% of Total Class of Financing Receivable

Financial Effect

Residential real estate loans

$

42

0.01

%

New loan was granted which decreased term from 240 months to 180 months and rate was increased from 4.75% to 9.25%

Total

$

42
Summary of Loan Concentrations by Industry

Account Type

Outstanding as of March 31, 2024

Percent of Loans as of March 31, 2024

Commercial Rentals

$

148,899

9.18

%

Residential Rentals

113,474

7.00

Hotels/Motels

92,138

5.68

Builders/Contractors

39,878

2.46

Dairy Cattle/Milk Product

47,430

2.93

Fuel/Gas Stations

46,552

2.87

Government Support

26,914

1.66

Mobile Home Park

27,861

1.72

Wineries

23,863

1.47

Camps

25,647

1.58

Resorts

20,154

1.24