10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 0-28364

Norwood Financial Corp

(Exact name of registrant as specified in its charter)

Pennsylvania	23-2828306
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)
717 Main Street, Honesdale, Pennsylvania	18431
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (570) 253-1455

N/A

Former name, former address and former fiscal year, if changed since last report.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	NWFL	The Nasdaq Stock Market LLC

Indicate by check (x) whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):    ☐  Yes    ☒  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding as of August 1, 2024
Common stock, par value $0.10 per share	8,085,377

NORWOOD FINANCIAL CORP

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2024

		Page Number
PART I -	CONSOLIDATED FINANCIAL INFORMATION OF NORWOOD FINANCIAL CORP	3
Item 1.	Financial Statements (unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47
Item 4.	Controls and Procedures	49
PART II -	OTHER INFORMATION	50
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3.	Defaults Upon Senior Securities	51
Item 4.	Mine Safety Disclosures	51
Item 5.	Other Information	50
Item 6.	Exhibits	52
Signatures		53

‎

2

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

NORWOOD FINANCIAL CORP

Consolidated Balance Sheets (unaudited)

(dollars in thousands, except share and per share data)

	June 30,		December 31,
	2024		2023
ASSETS
Cash and due from banks	$	29,903	$	28,533
Interest-bearing deposits with banks		39,492		37,587
Cash and cash equivalents		69,395		66,120
Securities available for sale, at fair value (net of allowance for credit losses of $0)		397,578		406,259
Loans receivable (net of allowance for credit losses of $17,806 and $18,968)		1,623,549		1,584,650
Regulatory stock, at cost		6,443		7,318
Bank premises and equipment, net		18,265		17,838
Bank owned life insurance		46,121		46,439
Accrued interest receivable		8,329		8,123
Foreclosed real estate owned		—		97
Deferred tax assets, net		21,707		21,353
Goodwill		29,266		29,266
Other intangibles		183		221
Other assets		14,480		13,395
TOTAL ASSETS	$	2,235,316	$	2,201,079
LIABILITIES
Deposits:
Non-interest bearing demand	$	391,849	$	399,545
Interest-bearing		1,419,323		1,395,614
Total deposits		1,811,172		1,795,159
Short-term borrowings		62,335		74,076
Other borrowings		148,087		124,236
Accrued interest payable		13,329		10,510
Other liabilities		18,206		16,028
TOTAL LIABILITIES		2,053,129		2,020,009
STOCKHOLDERS’ EQUITY
Preferred stock, no par value per share,
authorized: 5,000,000 shares; issued: none		—		—
Common stock, $0.10 par value per share,
authorized: 20,000,000 shares,
issued: 2024: 8,311,851 shares, 2023: 8,310,847 shares		831		831
Surplus		98,082		97,700
Retained earnings		139,070		135,284
Treasury stock at cost: 2024: 219,881 shares; 2023: 200,690 shares		(5,977)		(5,397)
Accumulated other comprehensive loss		(49,819)		(47,348)
TOTAL STOCKHOLDERS’ EQUITY		182,187		181,070
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,235,316	$	2,201,079

See accompanying notes to the unaudited consolidated financial statements. 
‎

3

NORWOOD FINANCIAL CORP

Consolidated Statements of Income (unaudited)

(dollars in thousan ds, except per share data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
INTEREST INCOME
Loans receivable, including fees	$	24,121	$	20,702	$	47,802	$	39,860
Securities		2,584		2,481		5,109		4,986
Other		966		53		1,697		101
Total interest income		27,671		23,236		54,608		44,947
INTEREST EXPENSE
Deposits		10,687		5,740		20,796		10,102
Short-term borrowings		356		797		692		1,576
Other borrowings		1,703		1,057		3,485		1,534
Total interest expense		12,746		7,594		24,973		13,212
NET INTEREST INCOME		14,925		15,642		29,635		31,735
PROVISION FOR (RELEASE OF)
CREDIT LOSS EXPENSE		347		(1,750)		(276)		(1,450)
NET INTEREST INCOME AFTER
PROVISION FOR (RELEASE OF) CREDIT LOSSES		14,578		17,392		29,911		33,185
OTHER INCOME
Service charges and fees		1,504		1,353		2,847		2,665
Income from fiduciary activities		225		229		463		441
Net realized gains on sales of securities		—		(212)		—		(209)
Gains on sales of loans, net		36		10		42		10
Earnings and proceeds on bank owned life insurance		253		229		520		442
Other		189		174		341		346
Total other income		2,207		1,783		4,213		3,695
OTHER EXPENSES
Salaries and employee benefits		5,954		5,842		12,090		11,810
Occupancy, furniture & equipment, net		1,229		1,314		2,489		2,576
Data processing and related operations		1,024		822		2,046		1,590
Taxes, other than income		179		162		272		323
Professional fees		508		323		1,092		608
Federal Deposit Insurance Corporation insurance		309		244		670		445
Foreclosed real estate		15		74		36		103
Amortization of intangibles		19		23		38		46
Other		2,207		2,134		4,442		3,873
Total other expenses		11,444		10,938		23,175		21,374
INCOME BEFORE INCOME TAXES		5,341		8,237		10,949		15,506
INCOME TAX EXPENSE		1,128		1,734		2,303		3,221
NET INCOME	$	4,213	$	6,503	$	8,646	$	12,285
BASIC EARNINGS PER SHARE	$	0.52	$	0.81	$	1.07	$	1.52
DILUTED EARNINGS PER SHARE	$	0.52	$	0.81	$	1.07	$	1.51

See accompanying notes to the unaudited consolidated financial statements.

 
‎

4

NORWOOD FINANCIAL CORP

Consolidated Statements of Comprehensive Income (unaudited)

(dollars in thousands)

	Three Months Ended
	June 30,
	2024		2023
Net income	$	4,213	$	6,503
Other comprehensive income (loss)
Investment securities available for sale:
Unrealized holding (losses) gains		(533)		(5,636)
Tax effect		113		1,183
Reclassification of investment securities losses
recognized in net income		—		212
Tax effect		—		(45)
Other comprehensive (loss) income		(420)		(4,286)
Comprehensive Income (loss)	$	3,793	$	2,217

	Six Months Ended
	June 30,
	2024		2023
Net income	$	8,646	$	12,285
Other comprehensive income (loss)
Investment securities available for sale:
Unrealized holding (loss) gain		(3,129)		3,719
Tax effect		658		(780)
Reclassification of investment securities losses
recognized in net income		—		209
Tax effect		—		(44)
Other comprehensive loss		(2,471)		3,104
Comprehensive Income (Loss)	$	6,175	$	15,389

See accompanying notes to the unaudited consolidated financial statements.

 
‎

5

NORWOOD FINANCIAL CORP

Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

Six Months Ended June 30, 2024 and 2023

(dollars in thousands, except share and per share data)

													Accumulated
													Other
	Common Stock						Retained		Treasury Stock				Comprehensive
	Shares		Amount		Surplus		Earnings		Shares		Amount		Income (Loss)		Total
Balance, December 31, 2023		8,310,847	$	831	$	97,700	$	135,284		200,690	$	(5,397)	$	(47,348)	$	181,070
Net Income		-		-		-		8,646		-		-		-		8,646
Other comprehensive loss		-		-		-		-		-		-		(2,471)		(2,471)
Cash dividends declared ($0.60 per share)		-		-		-		(4,860)		-		-		-		(4,860)
Acquisition of treasury stock		-		-		-		-		19,191		(580)		-		(580)
Compensation expense related to restricted stock		1,004		-		207		-		-		-		-		207
Compensation expense related to stock options		-		-		175		-		-		-		-		175
Balance, June 30, 2024		8,311,851	$	831	$	98,082	$	139,070		219,881	$	(5,977)	$	(49,819)	$	182,187
													Accumulated
													Other
	Common Stock						Retained		Treasury Stock				Comprehensive
	Shares		Amount		Surplus		Earnings		Shares		Amount		Income (Loss)		Total
Balance, December 31, 2022		8,291,401	$	829	$	96,897	$	130,020		124,650	$	(3,308)	$	(57,353)	$	167,085
Net Income		-		-		-		12,285		-		-		-		12,285
Other comprehensive income		-		-		-		-		-		-		3,104		3,104
Cash dividends declared ($0.58 per share)		-		-		-		(4,711)		-		-		-		(4,711)
Acquisition of treasury stock		-		-		-		-		113,526		(3,077)				(3,077)
Cumulative effect of adoption of ASU 2016-13		-		-		-		(2,011)		-		-		-		(2,011)
Compensation expense related to restricted stock		-		-		224		-		-		-		-		224
Stock options exercised		-		-		(44)		-		(14,250)		378		-		334
Compensation expense related to stock options		-		-		191		-		-		-		-		191
Balance, June 30, 2023		8,291,401	$	829	$	97,268	$	135,583		223,926	$	(6,007)	$	(54,249)	$	173,424

6

NORWOOD FINANCIAL CORP

Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

Three Months Ended June 30, 2024 and 2023

(dollars in thousands, except share and per share data)

													Accumulated
													Other
	Common Stock						Retained		Treasury Stock				Comprehensive
	Shares		Amount		Surplus		Earnings		Shares		Amount		Income (Loss)		Total
Balance, March 31, 2024		8,310,847	$	831	$	97,893	$	137,285		200,690	$	(5,397)	$	(49,399)	$	181,213
Net Income		-		-		-		4,213		-		-		-		4,213
Other comprehensive loss		-		-		-		-		-		-		(420)		(420)
Cash dividends declared ($0.30 per share)		-		-		-		(2,428)		-		-		-		(2,428)
Acquisition of treasury stock		-		-		-		-		19,191		(580)		-		(580)
Compensation expense related to restricted stock		1,004		-		103		-		-		-		-		103
Compensation expense related to stock options		-		-		86		-		-		-		-		86
Balance, June 30, 2024		8,311,851	$	831	$	98,082	$	139,070		219,881	$	(5,977)	$	(49,819)	$	182,187
													Accumulated
													Other
	Common Stock						Retained		Treasury Stock				Comprehensive
	Shares		Amount		Surplus		Earnings		Shares		Amount		Income (Loss)		Total
Balance, March 31, 2023		8,291,401	$	829	$	97,063	$	131,416		110,400	$	(2,930)	$	(49,963)	$	176,415
Net Income		-		-		-		6,503		-		-		-		6,503
Other comprehensive loss		-		-		-		-		-		-		(4,286)		(4,286)
Cash dividends declared ($0.29 per share)		-		-		-		(2,336)		-		-		-		(2,336)
Acquisition of treasury stock		-		-		-		-		113,526		(3,077)		-		(3,077)
Compensation expense related to restricted stock		-		-		110		-		-		-		-		110
Compensation expense related to stock options		-		-		95		-		-		-		-		95
Balance, June 30, 2023		8,291,401	$	829	$	97,268	$	135,583		223,926	$	(6,007)	$	(54,249)	$	173,424

See accompanying notes to the unaudited consolidated financial statements.
‎

7

NORWOOD FINANCIAL CORP

Consolidated Statements of Cash Flows (Unaudited)

(dollars in thousands)
	Six Months Ended June 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	8,646	$	12,285
Adjustments to reconcile net income to net cash provided by operating activities:
(Release of) credit losses		(276)		(1,450)
Depreciation		660		706
Amortization of intangible assets		38		46
Deferred income taxes		303		(577)
Net amortization of securities premiums and discounts		221		457
Net realized gain on sales of securities		—		209
Earnings and proceeds on life insurance policies		(520)		(442)
Gain (loss) on sales and write-downs of fixed assets and foreclosed real estate owned, net		(32)		177
Net amortization of loan fees		297		272
Net gain on sale of loans		(42)		(10)
Mortgage loans originated for sale		(2,360)		1,234
Proceeds from sale of loans originated for sale		2,402		(1,224)
Compensation expense related to stock options		175		191
Compensation expense related to restricted stock		207		224
(Increase) in accrued interest receivable		(206)		(359)
Increase in accrued interest payable		2,819		4,448
Other, net		1,024		38
Net cash provided by operating activities		13,356		16,225
CASH FLOWS FROM INVESTING ACTIVITIES
Securities available for sale:
Proceeds from sales		—		3,345
Proceeds from maturities and principal reductions on mortgage-backed securities		29,321		15,223
Purchases		(23,990)		—
Purchase of regulatory stock		(4,684)		(11,168)
Redemption of regulatory stock		5,559		8,662
Net increase in loans		(38,824)		(104,543)
Proceeds from bank-owned life insurance		838		—
Purchase of bank-owned life insurance		—		(2,000)
Purchase of premises and equipment		(1,087)		(268)
Proceeds from sales of foreclosed real estate owned		109		195
Net cash used in investing activities		(32,758)		(90,554)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits		16,013		4,270
Net (decrease) increase in short-term borrowings		(11,741)		19,075
Repayments of other borrowings		(36,149)		(20,313)
Proceeds from other borrowings		60,000		80,000
Stock options exercised		—		334
Purchase of treasury stock		(580)		(3,077)
Cash dividends paid		(4,866)		(4,737)
Net cash provided by financing activities		22,677		75,552
Increase in cash and cash equivalents		3,275		1,223
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		66,120		31,866
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	69,395	$	33,089

‎

8

NORWOOD FINANCIAL CORP

Consolidated Statements of Cash Flows (Unaudited) (continued)

(dollars in thousands)
	Six Months Ended June 30,
	2024		2023
Supplemental Disclosures of Cash Flow Information
Cash payments for:
Interest on deposits and borrowings	$	22,154	$	8,764
Income taxes paid, net of refunds	$	657	$	3,502
Supplemental Schedule of Noncash Investing Activities:
Transfers of loans to foreclosed real estate and repossession of other assets	$	798	$	988
Dividends payable	$	2,427	$	2,340

See accompanying notes to the unaudited consolidated financial statements.

‎

9

Notes to the Unaudited Consolidated Financial Statements

1.           Basis of Presentation

The unaudited consolidated financial statements include the accounts of Norwood Financial Corp (the “Company”) and its wholly-owned subsidiary, Wayne Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., and WTRO Properties, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the consolidated financial position and results of operations of the Company. The operating results for the three-month and six- month periods ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other future interim period.

2.           Revenue Recognition

Under ASC Topic 606, management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans sold and earnings on bank-owned life insurance are not within the scope of this Topic.

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30:

	Three months ended
	June 30,
(dollars in thousands)
Noninterest Income	2024		2023
In-scope of Topic 606:
Service charges on deposit accounts	$	113	$	110
ATM fees		107		106
Overdraft fees		345		342
Safe deposit box rental		20		22
Loan related service fees		189		131
Debit card fees		616		576
Fiduciary activities		225		229
Commissions on mutual funds and annuities		76		36
Gains on sales of other real estate owned		32		—
Other income		157		174
Noninterest Income (in-scope of Topic 606)		1,880		1,726
Out-of-scope of Topic 606:
Net realized gains (losses) on sales of securities		—		(212)
Loan servicing fees		38		30
Gains on sales of loans		36		10
Earnings on and proceeds from bank-owned life insurance		253		229
Noninterest Income (out-of-scope of Topic 606)		327		57
Total Noninterest Income	$	2,207	$	1,783

10

	Six months ended
	June 30,
(dollars in thousands)
Noninterest Income	2024		2023
In-scope of Topic 606:
Service charges on deposit accounts	$	225	$	214
ATM fees		213		212
Overdraft fees		700		661
Safe deposit box rental		45		48
Loan related service fees		319		284
Debit card fees		1,142		1,135
Fiduciary activities		463		441
Commissions on mutual funds and annuities		144		61
Gains on sales of other real estate owned		32		—
Other income		309		346
Noninterest Income (in-scope of Topic 606)		3,592		3,402
Out-of-scope of Topic 606:
Net realized gains (losses) on sales of securities		—		(209)
Loan servicing fees		59		50
Gains on sales of loans		42		10
Earnings on and proceeds from bank-owned life insurance		520		442
Noninterest Income (out-of-scope of Topic 606)		621		293
Total Noninterest Income	$	4,213	$	3,695

3.          Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock, and are determined using the treasury stock method.

The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share.

(in thousands)	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Weighted average shares outstanding	8,090	8,101	8,104	8,138
Less: Unvested restricted shares	(45)	(42)	(46)	(43)
Basic EPS weighted average shares outstanding	8,045	8,059	8,058	8,095
Basic EPS weighted average shares outstanding	8,045	8,059	8,058	8,095
Add: Dilutive effect of stock options and restricted shares	3	16	3	17
Diluted EPS weighted average shares outstanding	8,048	8,075	8,061	8,112

For the three and six month periods ended June 30, 2024, there were 191,850 stock options that were anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of the Company’s common stock of $25.38 per share as of June 30, 2024.

11

For the three and six month periods ended June 30, 2023, there were 110,350 stock options that were anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of the Company’s common stock of $29.53 per share as of June 30, 2023.

4.           Stock-Based Compensation

During the six-month period ended June 30, 2024, no stock options were granted. As of June 30, 2024, there was $171,000 of total unrecognized compensation cost related to non-vested options granted in 2024 and 2023 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2024. Compensation costs related to stock options amounted to $175,000 and $191,000 during the six-month periods ended June 30, 2024 and 2023, respectively.

A summary of the Company’s stock option activity for the six-month period ended June 30, 2024 is as follows:

		Weighted
		Average Exercise		Weighted Average		Aggregate
		Price		Remaining		Intrinsic Value
	Options	Per Share		Contractual Term		($000)
Outstanding at January 1, 2024	215,725	$	29.81	6.9	Yrs.	$	759
Granted	—		-	-
Exercised	—		-	-
Forfeited	(1,500)		36.02	5.7
Outstanding at June 30, 2024	214,225	$	30.62	6.4	Yrs.	$	100
Exercisable at June 30, 2024	175,725	$	30.83	5.7	Yrs.	$	100

Intrinsic value represents the amount by which the market price of the stock on the measurement date exceeded the exercise price of the option. The market price was $25.38 per share as of June 30, 2024 and $32.91 per share as of December 31, 2023.

A summary of the Company’s restricted stock activity for the six-month periods ended June 30, 2024 and 2023 is as follows:

	2024			2023
		Weighted-Average				Weighted-Average
	Number of	Grant Date		Number of	Grant Date
	Restricted Stock	Fair Value		Restricted Stock	Fair Value
Non-vested, January 1,	45,966	$	29.90	44,460	$	30.12
Granted	1,004		24.90	—		—
Vested	(1,200)		25.71	(3,000)		25.71
Forfeited	—		—	—		—
Non-vested, June 30,	45,770	$	29.35	41,460	$	30.44

The expected future compensation expense relating to the 45,770 shares of non-vested restricted stock outstanding as of June 30, 2024 is $1,174,000. This cost will be recognized over the remaining vesting period of 4.5 years. Compensation costs related to restricted stock amounted to $207,000 and $224,000 during the six-month periods ended June 30, 2024 and 2023, respectively.

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5.           Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) (in thousands) by component net of tax for the three and six months ended June 30, 2024 and 2023:

	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of December 31, 2023	$	(47,348)
Other comprehensive loss before reclassification		(2,471)
Amount reclassified from accumulated other comprehensive loss		-
Total other comprehensive loss		(2,471)
Balance as of June 30, 2024	$	(49,819)
	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of December 31, 2022	$	(57,353)
Other comprehensive income before reclassification		2,939
Amount reclassified from accumulated other comprehensive income		165
Total other comprehensive income		3,104
Balance as of June 30, 2023	$	(54,249)

	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of March 31, 2024	$	(49,399)
Other comprehensive loss before reclassification		(420)
Amount reclassified from accumulated other comprehensive loss		-
Total other comprehensive loss		(420)
Balance as of June 30, 2024	$	(49,819)
	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of March 31, 2023	$	(49,963)
Other comprehensive loss before reclassification		(4,453)
Amount reclassified from accumulated other comprehensive loss		167
Total other comprehensive loss		(4,286)
Balance as of June 30, 2023	$	(54,249)

(a)All amounts are net of tax. Amounts in parentheses indicate debits.

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The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) (in thousands) for the three and six months ended June 30, 2024 and 2023:

	Amount Reclassified
	From Accumulated
	Other
	Comprehensive
	Income (Loss) (a)				Affected Line Item in
	Three months ended				Consolidated
	June 30,				Statements
Details about other comprehensive income	2024		2023		of Income
Unrealized losses on available for sale securities	$	—	$	(212)	Net realized (losses) gains on sales of securities
Tax effect		—		45	Income tax expense
	$	—	$	(167)
	Six months ended
	June 30,
	2024		2023
Unrealized losses on available for sale securities	$	—	$	(209)	Net realized (losses) gains on sales of securities
Tax effect		—		44	Income tax expense
	$	—	$	(165)

(a) Amounts in parentheses indicate debits to net income

6.           Off-Balance Sheet Financial Instruments and Guarantees

The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

A summary of the Bank’s financial instrument commitments is as follows:

(in thousands)	June 30,
	2024		2023
Commitments to grant loans	$	94,714	$	96,514
Unfunded commitments under lines of credit		157,184		162,256
Standby letters of credit		7,221		13,809
	$	259,119	$	272,579

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer and generally consists of real estate.

The Bank does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit written are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank, generally, holds

14

collateral and/or personal guarantees supporting these commitments. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees.

7.           Securities

The amortized cost, gross unrealized gains and losses, approximate fair value, and allowance for credit losses of securities available for sale were as follows:

	June 30, 2024
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
	Cost		Gains		Losses			Losses	Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	41,257	$	-	$	(2,342)	$	-	$	38,915
U.S. Government agencies		27,551		21		(2,628)		-		24,944
States and political subdivisions		150,525		-		(23,877)		-		126,648
Mortgage-backed securities-
government sponsored entities		241,933		-		(34,862)		-		207,071
Total debt securities	$	461,266	$	21	$	(63,709)	$	-	$	397,578

	December 31, 2023
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
	Cost		Gains		Losses			Losses	Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	55,968	$	14	$	(2,382)	$	-	$	53,600
U.S. Government agencies		18,486		-		(2,490)		-		15,996
States and political subdivisions		151,764		-		(22,285)		-		129,479
Mortgage-backed securities-government
sponsored entities		240,600		-		(33,416)		-		207,184
Total debt securities	$	466,818	$	14	$	(60,573)	$	-	$	406,259

The following tables summarize debt securities available for sale in a loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	34,929	$	(2,342)	$	34,929	$	(2,342)
U.S. Government agencies		5,979		(24)		15,943		(2,604)		21,922		(2,628)
States and political subdivisions		536		(14)		124,897		(23,863)		125,433		(23,877)
Mortgage-backed securities-government sponsored entities		14,375		(128)		192,696		(34,734)		207,071		(34,862)
	$	20,890	$	(166)	$	368,465	$	(63,543)	$	389,355	$	(63,709)

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	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	40,833	$	(2,382)	$	40,833	$	(2,382)
U.S. Government agencies		-		-		15,996		(2,490)		15,996		(2,490)
States and political subdivisions		2,261		(12)		125,452		(22,273)		127,713		(22,285)
Mortgage-backed securities-government sponsored entities		-		-		207,184		(33,416)		207,184		(33,416)
	$	2,261	$	(12)	$	389,465	$	(60,561)	$	391,726	$	(60,573)

At June 30, 2024, the Company had 9 debt securities in an unrealized loss position in the less than twelve months category and 331 debt securities in the twelve months or more category. In Management’s opinion the unrealized losses reflect changes in interest rates subsequent to the acquisition of specific securities. The Company concluded that the decline in the value of these securities was not indicative of a credit loss. The Company did not recognize any credit losses on these available for sale debt securities for the six months ended June 30, 2024 and 2023. The Company does not have the intent to sell the securities and it is more likely than not that it will not have to sell the securities before recovery of its cost basis.

The amortized cost and fair value of debt securities as of June 30, 2024 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.

	Available for Sale
	Amortized Cost		Fair Value
		(In Thousands)
Due in one year or less	$	23,400	$	23,141
Due after one year through five years		39,178		36,130
Due after five years through ten years		76,727		63,253
Due after ten years		80,028		67,983
		219,333		190,507
Mortgage-backed securities-government sponsored entities		241,933		207,071
	$	461,266	$	397,578

Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands):

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Gross realized gains	$	—	$	—	$	—	$	4
Gross realized losses		—		(212)		—		(213)
Net realized gains (losses)	$	—	$	(212)	$	—	$	(209)
Proceeds from sales of securities	$	—	$	1,363	$	—	$	3,345

Securities with a carrying value of $345,310,000 and $344,204,000 at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

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8.           Loans Receivable and Allowance for Credit Losses

Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands):

	June 30, 2024				December 31, 2023
Real Estate Loans:
Residential	$	317,507	19.3	%	$	316,546	19.7	%
Commercial		685,212	41.8			675,156	42.1
Agricultural		60,963	3.7			63,859	4.0
Construction		48,030	2.9			51,453	3.2
Commercial loans		208,658	12.7			200,576	12.5
Other agricultural loans		31,281	1.9			31,966	2.0
Consumer loans to individuals		289,880	17.7			264,321	16.5
Total loans		1,641,531	100.0	%		1,603,877	100.0	%
Deferred fees, net		(176)				(259)
Total loans receivable		1,641,355				1,603,618
Allowance for credit losses		(17,806)				(18,968)
Net loans receivable	$	1,623,549			$	1,584,650

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of June 30, 2024 and December 31, 2023, foreclosed real estate owned totaled $0 and $97,000, respectively. During the six months ended June 30, 2024, there were no additions to the foreclosed real estate category. As of June 30, 2024, the Company has initiated formal foreclosure proceedings on 8 properties classified as consumer residential mortgages with an aggregate carrying value of $364,000.

The following tables show the amount of loans in each category that were individually and collectively evaluated for credit loss:

	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
June 30, 2024	(In thousands)
Individually evaluated	$	953	$	5,780	$	—	$	—	$	108	$	—	$	800	$	7,641
Collectively evaluated		316,554		679,432		60,963		48,030		208,550		31,281		289,080		1,633,890
Total Loans	$	317,507	$	685,212	$	60,963	$	48,030	$	208,658	$	31,281	$	289,880	$	1,641,531

	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

Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death

17

occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review, in conjunction with a third-party consultant, also annually reviews all criticized credits and relationships of $1,500,000 and over to re-affirm risk ratings.

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2024 and December 31, 2023 (in thousands):

	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
June 30, 2024
Real Estate loans
Residential	$	315,355	$	1,150	$	49	$	-	$	953	$	2,152	$	317,507
Commercial		678,714		718		-		-		5,780		6,498		685,212
Agricultural		60,944		19		-		-		-		19		60,963
Construction		47,991		-		39		-		-		39		48,030
Commercial loans		208,280		236		34		-		108		378		208,658
Other agricultural loans		31,281		-				-		-		-		31,281
Consumer loans		288,278		616		186		-		800		1,602		289,880
Total	$	1,630,843	$	2,739	$	308	$	-	$	7,641	$	10,688	$	1,641,531

	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

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for credit losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance.

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The following table presents the allowance for credit losses by the classes of the loan portfolio:

(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		-		-		-		-		(85)		-		(939)		(1,024)
Recoveries		42		104		-		-		-		-		44		190
(Release of) Provision for credit losses		(262)		(2,423)		(17)		(93)		913		36		1,518		(328)
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806
Ending balance individually evaluated	$	-	$	-	$	-	$	-	$	-	$	-	$	164	$	164
Ending balance collectively evaluated	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	3,913	$	17,642

(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2024	$	1,197	$	9,831	$	84	$	831	$	1,987	$	168	$	3,922	$	18,020
Charge Offs		-		-		-		-		(30)		-		(500)		(530)
Recoveries		-		2		-		-		-		-		17		19
(Release of) Provision for credit losses		(66)		(281)		(43)		9		78		(38)		638		297
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806

(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		(6)		(154)		-		-		(147)		-		(308)		(615)
Recoveries		6		9		-		-		6		-		46		67
Provision for credit losses		(24)		(2,422)		(4)		22		133		(41)		902		(1,434)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483
Ending balance individually evaluated ‎for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Ending balance collectively evaluated ‎for impairment	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483

(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2023	$	1,359	$	13,725	$	121	$	703	$	1,158	$	82	$	2,297	$	19,445
Charge Offs		(6)		(42)		-		-		(97)		-		(106)		(251)
Recoveries		—		3		-		-		—		-		20		23
Provision for loan losses		(89)		(2,433)		(66)		116		220		4		514		(1,734)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483

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During the six months ended June 30, 2024, the Company recorded a release of provision for credit loss expense totaling $328,000. Factors impacting the release include changes in the cumulative loss rates applied to the respective loan pools due to loss activity being added or subtracted with the passage of time, and variances in Qualitative Factors and Economic Factors.

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience. The Company chose to apply qualitative factors based on “quantitative metrics” which link the quantifiable metrics to historical changes in the qualitative factor categories. The Company also chose to apply economic projections to the model. A select group of economic indicators was utilized which was then correlated to the historical loss experience of the Company and its peers. Based on the correlation results, the economic adjustments are then weighted for relevancy and applied to the individual loan pools.

The following table presents the carrying value of loans on nonaccrual status and loans past due over 90 days still accruing interest (in thousands):

		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
June 30, 2024
Real Estate loans
Residential	$	953	$	-	$	953	$	-	$	953
Commercial		5,780		-		5,780		-		5,780
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		108		-		108		-		108
Other agricultural loans		-		-		-		-		-
Consumer loans		636		164		800		-		800
Total	$	7,477	$	164	$	7,641	$	-	$	7,641

		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

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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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	26,939	$	79,565	$	129,495	$	108,654	$	65,325	$	241,147	$	14,150	$	-	$	665,275
Special Mention		-		300		311		2,431		-		2,835		294		-		6,171
Substandard		-		-		2,944		3,217		1,424		6,181		-		-		13,766
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	26,939	$	79,865	$	132,750	$	114,302	$	66,749	$	250,163	$	14,444	$	-	$	685,212
Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real Estate - Agriculture
Risk Rating
Pass	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	31,241	$	444	$	-	$	60,025
Special Mention		-		-		-		-		-		788		150		-		938
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	32,029	$	594	$	-	$	60,963
Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk Rating
Pass	$	30,567	$	38,975	$	33,464	$	21,458	$	12,015	$	21,717	$	42,745	$	-	$	200,941
Special Mention		-		288		423		678		-		117		721		-		2,227
Substandard		-		-		2,845		557		44		49		1,995		-		5,490
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	30,567	$	39,263	$	36,732	$	22,693	$	12,059	$	21,883	$	45,461	$	-	$	208,658
Commercial loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	4	$	51	$	30	$	-	$	85
Other agricultural loans
Risk Rating
Pass	$	1,655	$	2,408	$	4,542	$	2,707	$	2,647	$	5,136	$	10,571	$	-	$	29,666
Special Mention		-		-		-		1		-		142		1,472		-		1,615
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-

21

Total	$	1,655	$	2,408	$	4,542	$	2,708	$	2,647	$	5,278	$	12,043	$	-	$	31,281
Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total
Risk Rating
Pass	$	61,163	$	123,463	$	179,762	$	136,951	$	87,417	$	299,241	$	67,910	$	-	$	955,907
Special Mention		-		588		734		3,110		-		3,882		2,637		-		10,951
Substandard		-		-		5,789		3,774		1,468		6,230		1,995		-		19,256
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	61,163	$	124,051	$	186,285	$	143,835	$	88,885	$	309,353	$	72,542	$	-	$	986,114

‎

22

														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

23

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 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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	5,508	$	33,444	$	62,335	$	55,302	$	33,460	$	97,694	$	28,811	$	-	$	316,554
Nonperforming		-		137		-		189		-		608		19		-		953
Total	$	5,508	$	33,581	$	62,335	$	55,491	$	33,460	$	98,302	$	28,830	$	-	$	317,507
Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Payment Performance
Performing	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030
Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans to individuals
Payment Performance
Performing	$	67,755	$	110,808	$	63,631	$	19,965	$	11,249	$	14,785	$	887	$	-	$	289,080
Nonperforming		-		241		358		135		31		35		-		-		800
Total	$	67,755	$	111,049	$	63,989	$	20,100	$	11,280	$	14,820	$	887	$	-	$	289,880

24

Consumer loans to individuals
Current period gross charge-offs	$	38	$	216	$	479	$	113	$	58	$	35	$	-	$	-	$	939
Total
Payment Performance
Performing	$	84,666	$	168,179	$	135,779	$	75,726	$	44,709	$	112,694	$	31,911	$	-	$	653,664
Nonperforming		-		378		358		324		31		643		19		-		1,753
Total	$	84,666	$	168,557	$	136,137	$	76,050	$	44,740	$	113,337	$	31,930	$	-	$	655,417

														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

25

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

Occasionally, the Bank modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Bank provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. During the six months ended June 30, 2024, there were 6 modifications made to borrowers experiencing financial difficulty. The following table presents modifications made to borrowers experiencing financial difficulty:

Principal Payment Deferral
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate loans	$	7,042	1.03	%	Deferred Principal for 2-12 months
Commercial loans		3,416	1.64		Deferred Principal for 2-12 months
Other agricultural loans		363	1.16		Deferred Principal for 4-6 months
Consumer loans		30	0.01		Deferred Principal for 12 months
Total	$	10,851
Payment Reduction
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate loans	$	391	0.06	%	Reduced monthly payment, which resulted in a balloon payment at maturity
Total	$	391
Combination - Term Adjustment and Interest Rate Adjustment
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Residential real estate loans	$	41	0.01	%	Reduced term by 5 years and increased interest rate from 4.75% to 9.25%
Consumer loans		29	0.01		Increase term by 6 months and increased interest rate from 9.19% to 12.99%
Total	$	70

26

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified (in thousands):

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
		Principal Payment Deferral		Principal Payment Adjustment		Combination - Term Extension and Interest Rate Adjustment
Commercial real estate loans	$	533	$	-	$	-
Commercial loans		32		-		-
Other agricultural loans		190		-		-
	$	755	$	-	$	-

The following table depicts the performance of loans that have been modified in the last 12 months for which a payment default has occured (in thousands):

Payment Status (Amortized Cost Basis)
		30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total Past Due
Commercial real estate loans	$	533	$	-	$	-	$	533
Commercial loans		32		-		-		32
Other agricultural loans		190		-		-		190
	$	755	$	-	$	-	$	755

The Company’s primary business activity as of June 30, 2024 was with customers located in northeastern Pennsylvania and the New York counties of Delaware, Sullivan, Ontario, Otsego and Yates. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to repay their loans is influenced by the region’s economy.

As of June 30, 2024, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $146.1 million of loans outstanding, or 8.9% of total loans outstanding, and residential rentals with loans outstanding of $112.8 million, or 6.9% of loans outstanding. For the six months ended June 30, 2024, the Company recognized charge offs of $0 on commercial rentals and $0 on residential rentals. The following table presents additional details regarding the company’s largest loan concentrations by industry as of June 30, 2024 (in thousands):

Account Type		Outstanding as of June 30, 2024	Percent of Loans as of June 30, 2024
Commercial Rentals	$	146,099	8.90	%
Residential Rentals		112,764	6.87
Hotels/Motels		97,296	5.93
Builders/Contractors		35,755	2.18
Dairy Cattle/Milk Product		45,835	2.79
Fuel/Gas Stations		50,325	3.07
Government Support		25,232	1.54
Mobile Home Park		27,275	1.66
Wineries		23,961	1.46
Camps		24,625	1.50
Resorts		19,892	1.21

27

9.          Fair Value of Assets and Liabilities

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Those assets and liabilities are presented in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis”. There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 16 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2024 and December 31, 2023 are as follows:

	Fair Value Measurement Using
	Reporting Date
Description	Total		Level 1		Level 2		Level 3
June 30, 2024	(In thousands)
ASSETS
Available for Sale:
U.S. Treasury securities	$	38,915	$	-	$	38,915	$	-
U.S. Government agencies		24,944		-		24,944		-
States and political subdivisions		126,648		-		126,648		-
Mortgage-backed securities-government
sponsored entities		207,071		-		207,071		-
Interest rate derivatives		1,312		-		1,312		-
LIABILITIES
Interest rate derivatives		1,312		-		1,312		-
Description	Total		Level 1		Level 2		Level 3
December 31, 2023	(In thousands)
ASSETS
Available for Sale:
U.S. Treasury securities	$	53,600	$	-	$	53,600	$	-
U.S. Government agencies		15,996		-		15,996		-
States and political subdivisions		129,479		-		129,479		-
Mortgage-backed securities-government
sponsored entities		207,184		-		207,184		-
Interest rate derivatives		1,225		-		1,225		-
LIABILITIES
Interest rate derivatives		1,225		-		1,225		-

28

Securities:

The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain Level 3 investments, if applicable.

Interest Rate Swaps:

The fair value of interest rate swaps is based upon the present value of the expected future cash flows using the Secured Overnight Financing Rate (“SOFR”) swap curve, the basis for the underlying interest rate. To price interest rate swaps, cash flows are first projected for each payment date using the fixed rate for the fixed side of the swap and the forward rates for the floating side of the swap. These swap cash flows are then discounted to time zero using SOFR zero-coupon interest rates. The sum of the present value of both legs is the fair market value of the interest rate swap. These valuations have been derived from our third party vendor’s proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions that we believe to be reasonable.

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2024 and December 31, 2023 are as follows:

			Fair Value Measurement Using Reporting Date
(In thousands)
Description	Total		Level 1		Level 2		Level 3
June 30, 2024
Individually analyzed loans held for investment	$	7,478	$	-	$	-	$	7,478
Foreclosed Real Estate Owned		-		-		-		-
December 31, 2023
Individually analyzed loans held for investment	$	7,487	$	-	$	-	$	7,487
Foreclosed Real Estate Owned		97		-		-		97

Individually analyzed loans held for investment:

The Company measures impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the lowest level of input that is significant to the fair value measurements.

As of June 30, 2024, the fair value investment in individually analyzed loans totaled $7,478,000, which included 38 loan relationships with a carrying value of $7,041,000 that did not require a specific allowance for credit loss since either the estimated realizable value of the collateral or the discounted cash flows exceeded the recorded investment in the loan. As of June 30, 2024, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $456,000. As of June 30, 2024, the fair value investment in individually analyzed loans included 24 loan relationships with a carrying value of $600,000 that required a valuation allowance of $164,000 since the estimated realizable value of the collateral did not support the recorded investment in the loan. As of June 30, 2024, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $0 over the life of the loan.

29

As of December 31, 2023, the fair value investment in individually analyzed loans totaled $7,487,000, which included 33 loan relationships with a carrying value of $7,069,000 that did not require a specific allowance for credit loss since either the estimated realizable value of the collateral or the discounted cash flows exceeded the recorded investment in the loan. As of December 31, 2023, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $5,277,000 over the life of the loans. As of December 31, 2023, the fair value investment in individually analyzed loans included 21 loan relationships with a carrying value of $553,000 that required a valuation allowance of $135,000 since the estimated realizable value of the collateral did not support the recorded investment in the loan. As of December 31, 2023, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $0 over the life of the loan.

Foreclosed real estate owned:

Real estate properties acquired through loan foreclosures, or by deed in lieu of loan foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement.

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2024
Individually analyzed loans held for investment	$	7,478	Appraisal of collateral(1)	Appraisal adjustments(2)	0.0%-10.0% (4.96%)
Foreclosed real estate owned	$	-	Appraisal of collateral(1)	Liquidation Expenses(2)	0.0%-0.0% (0.0%)

	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2023
Individually analyzed loans held for investment	$	7,487	Appraisal of collateral(1)	Appraisal adjustments(2)	0%-10.0% (2.68%)
Foreclosed real estate owned	$	97	Appraisal of collateral(1)	Liquidation Expenses(2)	16.67%-37.20% (28.07%)

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance.

(2)Appraisals may be adjusted by marulnagement for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Assets and Liabilities Not Required to be Measured or Reported at Fair Value

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at June 30, 2024 and December 31, 2023.

Loans receivable (carried at cost):

The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

30

Mortgage servicing rights (generally carried at cost)

The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation.

Deposit liabilities (carried at cost):

The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Other borrowings (carried at cost):

Fair values of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a fair value that is deemed to represent the transfer price if the liability were assumed by a third party.

The estimated fair values of the Bank’s financial instruments not required to be measured or reported at fair value were as follows at June 30, 2024 and December 31, 2023. (In thousands)

	Fair Value Measurements at June 30, 2024
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents (1)	$	69,395	$	69,395	$	69,395	$	-	$	-
Loans receivable, net		1,623,549		1,562,930		-		-		1,562,930
Mortgage servicing rights		174		529		-		-		529
Regulatory stock (1)		6,443		6,443		6,443		-		-
Bank owned life insurance (1)		46,121		46,121		46,121		-		-
Accrued interest receivable (1)		8,329		8,329		8,329		-		-
Financial liabilities:
Deposits		1,811,172		1,805,489		1,068,327		-		737,162
Short-term borrowings (1)		62,335		62,335		62,335		-		-
Other borrowings		148,087		147,906		-		-		147,906
Accrued interest payable (1)		13,329		13,329		13,329		-		-
Off-balance sheet financial instruments:
Commitments to extend credit and ‎outstanding letters of credit		-		-		-		-		-

31

	Fair Value Measurements at December 31, 2023
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents (1)	$	66,120	$	66,120	$	66,120	$	-	$	-
Loans receivable, net		1,584,650		1,521,667		-		-		1,521,667
Mortgage servicing rights		188		506		-		-		506
Regulatory stock (1)		7,318		7,318		7,318		-		-
Bank owned life insurance (1)		46,439		46,439		46,439		-		-
Accrued interest receivable (1)		8,123		8,123		8,123		-		-
Financial liabilities:
Deposits		1,795,159		1,800,104		1,086,050		-		714,054
Short-term borrowings (1)		74,076		74,076		74,076		-		-
Other borrowings		124,236		124,058		-		-		124,058
Accrued interest payable (1)		10,510		10,510		10,510		-		-
Off-balance sheet financial instruments:
Commitments to extend credit and ‎outstanding letters of credit		-		-		-		-		-

(1)This financial instrument is carried at cost, which approximates the fair value of the instrument.

10.          Interest Rate Swaps

The Company enters into interest rate swaps that allow our commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate into a fixed-rate. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are not marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There was no effect on earnings in any periods presented. At June 30, 2024 and December 31, 2023, based upon the swap contract values, the company pledged cash in the amount of $350,000 as collateral for its interest rate swaps with a third-party financial institution. The fair value of the swaps as of June 30, 2024 and December 31, 2023 was $1,312,000 and $1,225,000, respectively.

Summary information regarding these derivatives is presented below

(Amounts in thousands)
	Notional Amount								Fair Value
		June 30, 2024		December 31, 2023		Interest Rate Paid		Interest Rate Received		June 30, 2024		December 31, 2023
Customer interest rate swap
Maturing November, 2030	$	5,957	$	6,145	Term SOFR + Margin			Fixed	$	800	$	746
Maturing December, 2030		3,896		4,032	Term SOFR + Margin			Fixed		512		479
Total	$	9,853	$	10,177					$	1,312	$	1,225
Third party interest rate swap
Maturing November, 2030	$	5,957	$	6,145		Fixed	Term SOFR + Margin		$	800	$	746
Maturing December, 2030		3,896		4,032		Fixed	Term SOFR + Margin			512		479
Total	$	9,853	$	10,177					$	1,312	$	1,225

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The following table presents the fair values of derivative instruments in the Consolidated Balance Sheet.

	(Amounts in thousands)
	Assets			Liabilities
	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
June 30, 2024
Interest rate derivatives	Other assets	$	1,312	Other liabilities	$	1,312
December 31, 2023
Interest rate derivatives	Other assets		1,225	Other liabilities		1,225

11.           New and Recently Adopted Accounting Pronouncements

In March 2023, the FASB issued ASU No. 2023-02, "Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)". The ASU allows entities to elect the proportional amortization method, on a tax-credit-program-by-tax-credit-program basis, for all equity investments in tax credit programs meeting the eligibility criteria in Accounting Standards Codification (ASC) 323-740-25-1. While the ASU does not significantly alter the existing eligibility criteria, it does provide clarifications to address existing interpretive issues. It also prescribes specific information reporting entities must disclose about tax credit investments each period. This ASU is effective for reporting periods beginning after December 15, 2023, for public business entities, or January 1, 2024 for the Company. The Company does not expect the adoption of this ASU to have a material impact on the Company's financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for public business entities for annual periods beginning after December 15, 2024.  This Update is not expected to have a significant impact on the Company’s financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q may include certain forward-looking statements based on current management expectations. Such forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may”, “will”, “believe”, “expect”, “estimate”, “anticipate”, “continue”, or similar terms or variations on those terms, or the negative of those terms. The actual results of the Company could differ materially from those management expectations. This includes statements regarding general economic conditions, legislative and regulatory changes, monetary and fiscal policies of the federal government, changes in tax policies, rates and regulations of federal, state and local tax authorities and failure to integrate or profitably operate acquired businesses. Additional potential factors include changes in interest rates, the rate of inflation, deposit flows, cost of funds, demand for loan products and financial services, competition and changes in the quality or composition of loan and investment portfolios of the Company. Other factors that could cause future results to vary from current management expectations include changes in accounting principles, policies or guidelines, and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices, instability in the banking system, and the potential for a recessionary economy. Further description of the risks and uncertainties to the business are included in the Company’s other filings with the Securities and Exchange Commission.

The majority of the assets and liabilities of a financial institution are monetary in nature, and therefore, differ greatly from most commercial and industrial companies that have significant investments in fixed assets or inventories. However, inflation does have an impact on the Company, particularly with respect to the growth of total assets and noninterest expenses, which tend to rise during periods of general inflation. Risks also exist due to supply and demand imbalances, employment shortages, the interest rate environment, and geopolitical tensions. It is reasonably foreseeable that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including expected credit losses on loans and the fair value of financial instruments that are carried at fair value.

Our operations are subject to risks and uncertainties surrounding our exposure to changes in the interest rate environment. Earnings and liquidity depend to a great extent on our interest rates. Interest rates are highly sensitive to many factors beyond our control, including competition, general economic conditions, geopolitical tensions and monetary and fiscal policies of various governmental and regulatory authorities, including the Federal Reserve. Conditions such as inflation, deflation, recession, unemployment and other factors beyond our control may also affect interest rates. The nature and timing of any changes in interest rates or general economic conditions and their effect on us cannot be controlled and are difficult to predict. If the rate of interest we pay on our interest-bearing liabilities increases more than the rate of interest we receive on our interest-earning assets, our net interest income, and therefore our earnings, could contract and be materially adversely affected. Our earnings could also be materially adversely affected if the rates on interest-earning assets fall more quickly than those on our interest-bearing liabilities. Changes in interest rates could also create competitive pressures, which could impact our liquidity position.

Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

Critical Accounting Policies

Note 2 to the Company’s consolidated financial statements for the fiscal year ended December 31, 2023 (included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023) lists significant accounting policies used in the development and presentation of its financial statements. This discussion and analysis, the significant accounting policies, and other financial statement disclosures identify and address key variables and other qualitative and quantitative factors that are necessary for an understanding and evaluation of the Company and its results of operations.

Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, and the determination of goodwill impairment. Please refer to the discussion of the allowance for credit losses calculation under “Changes in Financial Condition - Loans” below.

In connection with the acquisition of North Penn in 2011, we recorded goodwill in the amount of $9.7 million, representing the excess of amounts paid over the fair value of the net assets of the institution acquired at the date of acquisition. In connection with the acquisition of Delaware in 2016, we recorded goodwill in the amount of $1.6 million, representing the excess of amounts paid over the fair value of the net assets of the institution acquired at the date of acquisition. In connection with the acquisition of UpState New York Bancorp, Inc. in July 2020, we recorded goodwill in the amount of $17.9 million, representing the excess of amounts paid over

34

the fair value of the net assets of the institution acquired at the date of acquisition. Goodwill is tested annually and deemed impaired when the carrying value of goodwill exceeds its implied fair value.

Changes in Financial Condition

General

Total assets as of June 30, 2024 were $2.235 billion compared to $2.201 billion as of December 31, 2023. The increase was due primarily to a $37.7 million increase in gross loans outstanding.

Securities

The fair value of securities available for sale as of June 30, 2024 was $397.6 million compared to $406.3 million as of December 31, 2023. In Management’s opinion the unrealized losses reflect changes in interest rates subsequent to the acquisition of specific securities. The Company concluded that the decrease in the value of these securities was not indicative of a credit loss. The Company did not recognize any credit losses on these available for sale debt securities for the six months ended June 30, 2024, or the six months ended June 30, 2023. The Company does not have the intent to sell the securities and it is more likely than not that it will not have to sell the securities before recovery of its cost basis.

Loans

Loans receivable totaled $1.624 billion at June 30, 2024 compared to $1.585 billion as of December 31, 2023. The $38.9 million increase in net loans receivable during the six months ended June 30, 2024, was due primarily to a $10.1 million increase in commercial real estate loans, a $8.1 million increase in commercial loans and a $25.6 million increase in consumer loans, partially offset by a $6.0 million decrease in residential, agricultural and construction loans, net.

The allowance for credit losses totaled $17,806,000 as of June 30, 2024, and represented 1.08% of total loans outstanding, compared to $18,968,000, or 1.18% of total loans outstanding, at December 31, 2023. The Company had net charge-offs for the six months ended June 30, 2024 of $834,000, compared to $548,000 in the corresponding period in 2023. The Company’s management assesses the adequacy of the allowance for credit losses on a quarterly basis. Based on management’s best judgement, the qualitative factors are applied to the final adjusted loss rate each quarter. Management considers the allowance for credit losses adequate at June 30, 2024 based on the Company’s criteria. However, there can be no assurance that the allowance for credit losses will be adequate to cover significant losses, if any, which might be incurred in the future.

As of June 30, 2024, non-performing loans totaled $7,641,000 or 0.47% of total loans compared to $7,622,000, or 0.48%, of total loans at December 31, 2023. At June 30, 2024, non-performing assets totaled $7,641,000, or 0.34%, of total assets, compared to $7,719,000, or 0.35%, of total assets at December 31, 2023.

35

The following table sets forth information regarding non-performing loans and foreclosed real estate at the dates indicated:

(dollars in thousands)	June 30, 2024			December 31, 2023
Loans accounted for on a non-accrual basis:
Real Estate
Residential	$	953		$	432
Commercial		5,780			2,211
Agricultural		—			—
Construction		—			—
Commercial and financial loans		108			4,264
Other agricultural loans		—			—
Consumer loans to individuals		800			715
Total non-accrual loans		7,641			7,622
Accruing loans which are contractually
past due 90 days or more		—			—
Total non-performing loans		7,641			7,622
Foreclosed real estate		—			97
Total non-performing assets	$	7,641		$	7,719
Allowance for credit losses	$	17,806		$	18,968
Coverage of non-performing loans		233%	%		249%	%
Non-performing loans to total loans		0.47	%		0.48	%
Non-performing loans to total assets		0.34	%		0.35	%
Non-performing assets to total assets		0.34	%		0.35	%

Deposits

During the six-months ended June 30, 2024, total deposits increased $16.0 million due primarily to a $33.7 million increase in certificates of deposit, partially offset by a $17.7 million decrease in other all other deposit categories, net. The increase in certificates of deposit was due to a migration from lower yielding demand deposits into higher yielding time deposits, as well as growth from to deposit promotions.

The following table sets forth deposit balances as of the dates indicated:

(dollars in thousands)	June 30, 2024		December 31, 2023
Non-interest bearing demand	$	391,849	$	399,545
Interest-bearing demand		253,427		253,133
Money market deposit accounts		199,264		206,928
Savings		223,788		226,444
Time deposits <$250,000		486,430		439,610
Time deposits >$250,000		256,414		269,499
Total	$	1,811,172	$	1,795,159

Borrowings

Short-term borrowings decreased $11.8 million to $62.3 million at June 30, 2024, compared to $74.1 million at December 31, 2023, due primarily to an decrease in overnight borrowings.

Other borrowings as of June 30, 2024, were $148.1 million compared to $124.2 million as of December 31, 2023. Federal Reserve Bank borrowings increased $30.0 million during the six-months ended June 30, 2024, contributing to the increase. Federal Home Loan Bank borrowings decreased $6.1 million during the period.

36

Other borrowings consisted of the following:

(dollars in thousands)	June 30, 2024		December 31, 2023
Notes with the FHLB:
Fixed rate borrowing due April 2025 at 4.26%	$	20,000	$	20,000
Amortizing fixed rate borrowing due September 2025 at 5.67%		3,191		4,406
Fixed rate borrowing due April 2026 at 4.04%		20,000		20,000
Amortizing fixed rate borrowing due May 2027 at 4.37%		22,390		25,950
Amortizing fixed rate borrowing due July 2028 at 4.70%		12,506		13,880
Fixed rate borrowing due July 2028 at 4.49%		10,000		10,000
	$	88,087	$	94,236
Notes with the Federal Reserve Bank
Fixed rate borrowing due March 2024 at 4.83%	$	—	$	10,000
Fixed rate borrowing due September 2024 at 5.55%		—		20,000
Fixed rate borrowing due January 2025 at 4.81%		40,000		—
Fixed rate borrowing due January 2025 at 4.76%		20,000		—
	$	60,000	$	30,000

Stockholders’ Equity and Capital Ratios

As of June 30, 2024, total stockholders’ equity was $182.2 million, compared to $181.1 million as of December 31, 2023. Total stockholders’ equity increased $8.6 million due to net income, offset partially by $4.9 million of dividends declared and a decrease of $2.5 million in the fair value of securities in the available-for-sale portfolio, net of tax. The decrease in fair value of securities is the result of a change in interest rates and spreads, which may impact the value of the securities. Because of interest rate volatility, the Company’s accumulated other comprehensive income could materially fluctuate for each interim and year-end period.

Regulatory Capital Requirements. The Federal Reserve has adopted regulatory capital rules pursuant to which it assesses the adequacy of capital in examining and supervising a bank holding company and in analyzing applications to it under the Bank Holding Company Act (“BHCA”). The Federal Reserve’s capital rules are similar to those imposed on the Bank by the FDIC. The Federal Reserve’s Small Bank Holding Company Policy Statement, however, exempts from the regulatory capital requirements bank holding companies with less than $3.0 billion in consolidated assets that are not engaged in significant non-banking or off-balance sheet activities and that do not have a material amount of debt or equity securities registered with the SEC. As long as their bank subsidiaries are well capitalized, such bank holding companies need only maintain a pro forma debt to equity ratio of less than 1.0 in order to pay dividends and repurchase stock and to be eligible for expedited treatment on applications.

A comparison of the Company’s consolidated regulatory capital ratios is as follows:

	June 30, 2024	December 31, 2023
Tier 1 Capital
(To average assets)	8.88%	9.00%
Tier 1 Capital
(To risk-weighted assets)	11.86%	11.99%
Common Equity Tier 1 Capital
(To risk-weighted assets)	11.86%	11.99%
Total Capital
(To risk-weighted assets)	12.86%	13.06%

The Bank is required to comply with applicable capital adequacy rules adopted by the FDIC and other federal bank regulatory agencies (the “Basel III Capital Rules”). The Basel III Capital Rules apply to all depository institutions as well as to all top-tier bank and savings and loan holding companies that are not subject to the Federal Reserve Small Bank Holding Company Policy Statement.

Under the Basel III Capital Rules, banks are required to meet four minimum capital standards: (1) a “Tier 1” or “core” capital leverage ratio equal to at least 4% of total adjusted assets; (2) a common equity Tier 1 capital ratio equal to 4.5% of risk-weighted assets; (3) a Tier 1 risk-based ratio equal to 6% of risk-weighted assets; and (4) a total capital ratio equal to 8% of total risk-weighted assets. Common equity Tier 1 capital is defined as common stock instruments, retained earnings, any common equity Tier 1 minority interest and, unless the bank has made an “opt-out” election, accumulated other comprehensive income, net of goodwill and certain other

37

intangible assets. Tier 1 or core capital is defined as common equity Tier 1 capital plus certain qualifying subordinated interests and grandfathered capital instruments. Total capital consists of Tier 1 capital plus Tier 2 or supplementary capital items, which include allowances for loan losses in an amount of up to 1.25% of risk-weighted assets, qualifying subordinated instruments and certain grandfathered capital instruments. An institution’s risk-based capital requirements are measured against risk-weighted assets, which equal the sum of each on-balance-sheet asset and the credit-equivalent amount of each off-balance-sheet item after being multiplied by an assigned risk weight. Risk weightings range from 0% for cash to 100% for property acquired through foreclosure, commercial loans, and certain other assets to 150% for exposures that are more than 90 days past due or are on nonaccrual status and certain commercial real estate facilities that finance the acquisition, development or construction of real property.

In addition to the above minimum requirements, the Basel III Capital Rules require banks and covered financial institution holding companies to maintain a capital conservation buffer of at least 2.5% of risk-weighted assets over and above the minimum risk-based capital requirements. Institutions that do not maintain the required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management. The capital buffer requirement effectively raises the minimum required risk-based capital ratios to 7% for Common Equity Tier 1 Capital, 8.5% for Tier 1 Capital and 10.5% for Total Capital on a fully phased-in basis. The Company and the Bank were in compliance with all applicable regulatory capital requirements as of June 30, 2024.

In December 2018, the Federal Reserve announced that a banking organization that experiences a reduction in retained earnings due to the CECL adoption as of the beginning of the fiscal year in which CECL is adopted may elect to phase in the regulatory capital impact of adopting CECL. Transitional amounts are calculated for the following items: retained earnings, temporary difference deferred tax assets and credit loss allowances eligible for inclusion in regulatory capital. When calculating regulatory capital ratios, 25% of the transitional amounts are phased in during the first year. An additional 25% of the transitional amounts are phased in over each of the next two years and at the beginning of the fourth year, the day-one effects of CECL are completely reflected in regulatory capital.

The Company adopted the transition guidance applied these effects to regulatory capital in the first quarter of 2023 upon adoption of CECL.

Liquidity

As of June 30, 2024, the Company had cash and cash equivalents of $69.4 million in the form of cash, due from banks and short-term deposits with other institutions. In addition, the Company had total securities available for sale of $397.6 million which could be used for liquidity needs. Total liquidity of $467.0 million as of June 30, 2024, represents 20.9% of total assets, compared to $472.4 million and 21.5% of total assets as of December 31, 2023. The Company also monitors other liquidity measures, all of which were within the Company’s policy guidelines as of June 30, 2024 and December 31, 2023. Based upon these measures, the Company believes its liquidity is adequate.

Capital Resources

The Company has a line of credit commitment from Atlantic Community Bankers Bank for $7,000,000 which expires June 30, 2025. There were no borrowings under this line as of June 30, 2024 and December 31, 2023.

The Company has a line of credit commitment available which has no stated expiration date from PNC Bank for $10,000,000. There were no borrowings under this line as of June 30, 2024 and December 31, 2023.

The Bank’s maximum borrowing capacity with the Federal Home Loan Bank was approximately $681,302,000 as of June 30, 2024, of which $88,087,000 was outstanding in the form of borrowings as of June 30, 2024. As of December 31, 2023, the maximum borrowing capacity was $682,417,000, of which $114,236,000 of borrowings was outstanding as of December 31, 2023. Additionally, as of June 30, 2024, the Bank had secured Letters of Credit from the Federal Home Loan Bank in the amount of $168,425,000 as collateral for specific municipal deposits. These Letters of Credit reduce the availability under the maximum borrowing capacity. As of December 31, 2023, there was $136,650,000 outstanding in the form of Letters of Credit. Advances and Letters of Credit from the Federal Home Loan Bank are secured by qualifying assets of the Bank.

Non-GAAP Financial Measures

This report contains or references fully taxable-equivalent (fte) interest income and net interest income, which are non-GAAP financial measures. Interest income (fte) and net interest income (fte) are derived from GAAP interest income and net interest income using an assumed tax rate of 21%. We believe the presentation of interest income (fte) and net interest income (fte) ensures comparability of interest income and net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. Interest income (fte) and Net interest income (fte) is reconciled to GAAP interest income and net interest income on

38

pages 40 and 44. Fully taxable equivalent interest income and net interest income is also reflected in the table on pages 41 and 45. Although the Company believes that these non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP measures.

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39

Results of Operations

NORWOOD FINANCIAL CORP

Consolidated Average Balance Sheets with Resultant Interest and Rates

(Tax-Equivalent Basis,	Three Months Ended June 30,
dollars in thousands)	2024						2023
	Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate
	(2)		(1)		(3)		(2)		(1)		(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	69,173	$	967		5.59%	$	3,868	$	53		5.48%
Securities available for sale:
Taxable		401,014		2,206		2.20		415,642		2,097		2.02
Tax-exempt (1)		69,126		477		2.76		70,427		485		2.75
Total securities available for sale (1)		470,140		2,683		2.28		486,069		2,582		2.12
Loans receivable (1) (4) (5)		1,629,283		24,220		5.95		1,559,252		20,788		5.33
Total interest-earning assets		2,168,596		27,870		5.14		2,049,189		23,423		4.57
Non-interest earning assets:
Cash and due from banks		26,422						24,815
Allowance for credit losses		(18,023)						(19,524)
Other assets		69,718						69,867
Total non-interest earning assets		78,117						75,158
Total Assets	$	2,246,713					$	2,124,347
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	450,918	$	2,397		2.13	$	462,566	$	1,159		1.00
Savings		233,676		286		0.49		254,471		77		0.12
Time		755,224		8,004		4.24		604,425		4,504		2.98
Total interest-bearing deposits		1,439,818		10,687		2.97		1,321,462		5,740		1.74
Short-term borrowings		61,689		356		2.31		95,930		797		3.32
Other borrowings		149,442		1,703		4.56		93,144		1,057		4.54
Total interest-bearing liabilities		1,650,949		12,746		3.09		1,510,536		7,594		2.01
Non-interest bearing liabilities:
Demand deposits		387,962						414,709
Other liabilities		28,308						21,861
Total non-interest bearing liabilities		416,270						436,570
Stockholders' equity		179,494						177,241
Total Liabilities and Stockholders' Equity	$	2,246,713					$	2,124,347
Net interest income/spread (tax equivalent basis)				15,124		2.05%				15,829		2.56%
Tax-equivalent basis adjustment				(199)						(187)
Net interest income			$	14,925					$	15,642
Net interest margin (tax equivalent basis)						2.79%						3.09%

(1)Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.

(2)Average balances have been calculated based on daily balances.

(3)Annualized

(4)Loan balances include non-accrual loans and are net of unearned income.

(5)Loan yields include the effect of amortization of deferred fees, net of costs.

‎

40

Rate/Volume Analysis. The following table shows the fully taxable equivalent effect of changes in volumes and rates on interest income and interest expense. Changes in net interest income that could not be specifically identified as either a rate or volume change were allocated proportionately to changes in volume and changes in rate.

	Increase/(Decrease)
	Three months ended June 30, 2024 Compared to
	Three months ended June 30, 2023
	Variance due to
	Volume		Rate		Net
	(dollars in thousands)
Interest-earning assets:
Interest-bearing deposits with banks	$	896	$	18	$	914
Securities available for sale:
Taxable		(77)		186		109
Tax-exempt securities		(10)		2		(8)
Total securities		(87)		188		101
Loans receivable		1,003		2,429		3,432
Total interest-earning assets		1,812		2,635		4,447
Interest-bearing liabilities:
Interest-bearing demand and money market		(61)		1,299		1,238
Savings		(23)		233		210
Time		1,406		2,093		3,499
Total interest-bearing deposits		1,322		3,625		4,947
Short-term borrowings		(247)		(194)		(441)
Other borrowings		639		7		646
Total interest-bearing liabilities		1,714		3,438		5,152
Net interest income (tax-equivalent basis)	$	98	$	(803)	$	(705)

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41

Comparison of Operating Results for the Three Months Ended June 30, 2024 to June 30, 2023

General

For the three months ended June 30, 2024, net income totaled $4,213,000 compared to net income of $6,503,000 in the three months ended June 30, 2023. The decrease in net income for the three months ended June 30, 2024, was due primarily to a $717,000 decrease in net interest income, and a $2,097,000 increase in the provision for credit losses. Earnings per share for the three-months ended June 30, 2024 were $0.52 per share for basic shares and fully diluted shares, compared to $0.81 per share for basic shares and for fully diluted shares for the three months ended June 30, 2023. The resulting annualized return on average assets and annualized return on average equity for the three months ended June 30, 2024 were 0.75% and 9.41%, respectively, compared to 1.23% and 14.72%, respectively, for the same period in 2023.

The following table sets forth changes in net income:

(dollars in thousands)	Three months ended
	June 30, 2024 to June 30, 2023
Net income three months ended June 30, 2023	$	6,503
Change due to:
Net interest income		(717)
Provision for credit losses		(2,097)
Net gains on sales of securities and loans		238
Service charges and fees		151
Earnings and proceeds on bank-owned life insurance		24
Other income		11
Salaries and employee benefits		(112)
Occupancy, furniture and equipment		85
All other expenses		(479)
Income tax expense		606
Net income three months ended June 30, 2024	$	4,213

Net Interest Income

Net interest income on a fully taxable equivalent basis (fte) for the three months ended June 30, 2024 totaled $15,124,000 which was $705,000 lower than the comparable period in 2023. The decrease in net interest income was due primarily to a $5,152,000 increase in total interest expense, which was partially offset by a $4,447,000 increase in total interest income (fte). The (fte) net interest spread and net interest margin were 2.05% and 2.79%, respectively, for the three months ended June 30, 2024 compared to 2.56% and 3.09%, respectively, for the same period in 2023. See “Non-GAAP Financial Measures” described above beginning on page 38.

For the three-months ended June 30, 2024, interest income (fte) totaled $27,870,00, with a yield on average earning assets of 5.14% compared to $23,423,000 and 4.57% for the three months ended June 30, 2023. Average loans increased $70.0 million during the three-months ended June 30, 2024, over the comparable period of 2023, while average securities decreased $15.9 million compared to the three months ended June 30, 2023. Average earning assets totaled $2.169 billion for the three months ended June 30, 2024, an increase of $119.4 million, over average earning assets for the same period in 2023. See “Non-GAAP Financial Measures” described above beginning on page 38.

Interest expense for the three months ended June 30, 2024 totaled $12,746,000, at an average cost of 3.09%, compared to $7,594,000, at an average cost of 2.01% for the same period in 2023. The increase in interest expense during the three-months ended June 30, 2024 reflects the overall higher level of market interest rates. During the three months ended June 30, 2024, the average cost of time deposits, which is the most significant component of funding costs, increased 126 basis points compared to the same three-month period of last year, while interest-bearing demand and money market costs increased 113 basis points and short-term borrowing costs decreased 101 basis points compared to the same three-month period of 2023.

Provision for Credit Losses

The Company had a provision for credit losses of $347,000 during the three months ended June 30, 2024, compared to a release of provision for credit loss expense of $1,750,000 for the three months ended June 30, 2023. The Company makes provisions for, or releases of credit loss expense in an amount necessary to maintain the allowance for credit losses at an acceptable level under

42

the current expected credit loss methodology analysis. The Company recorded a net charge-off of $511,000 for the quarter ended June 30, 2024, compared to a net charge-off of $228,000 for the similar period in 2023. At June 30, 2024, the allowance for credit losses related to loans receivable was 1.08% of loans receivable. Additionally, at June 30, 2024, the allowance for credit losses related to loans receivable represented 233% of non-performing loans.

Other Income

Other income totaled $2,207,000 for the three months ended June 30, 2024, compared to $1,783,000 for the same period in 2023. The increase was due primarily to an increased level of service charges and fees, along with a decrease in the losses on sales of securities. All other categories of other income increased $61,000, net, during the three months ended June 30, 2024.

Other Expense

Other expense for the three months ended June 30, 2024 totaled $11,444,000, which was $506,000, or 4.6%, higher than the same period of 2023, due primarily to a $202,000 increase in data processing expense, a $185,000 increase in professional fees, and a $112,000 increase in salaries and employee benefits during the three months ended June 30, 2024. All other categories of other expense increased $7,000, net, during the three months ended June 30, 2024.

Income Tax Expense

Income tax expense totaled $1,128,000 for an effective tax rate of 21.1% for the three months ended June 30, 2024 compared to $1,734,000 for an effective tax rate of 21.0% for the three months ended June 30, 2023.

‎

43

Results of Operations

NORWOOD FINANCIAL CORP

Consolidated Average Balance Sheets with Resultant Interest and Rates

(Tax-Equivalent Basis,	Six Months Ended June 30,
dollars in thousands)	2024						2023
	Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate
	(2)		(1)		(3)		(2)		(1)		(3)
Assets
Interest-earning assets:
Interest bearing deposits with banks	$	61,551	$	1,697		5.51%	$	4,039	$	101		5.00%
Securities available for sale:
Taxable		401,645		4,353		2.17		418,372		4,212		2.01
Tax-exempt (1)		69,503		958		2.76		71,069		979		2.76
Total securities available for sale (1)		471,148		5,311		2.25		489,441		5,191		2.12
Loans receivable (1) (4) (5)		1,620,694		47,994		5.92		1,533,318		40,024		5.22
Total interest-earning assets		2,153,393		55,002		5.11		2,026,798		45,316		4.47
Non-interest earning assets:
Cash and due from banks		25,508						25,395
Allowance for loan losses		(18,559)						(19,267)
Other assets		71,705						67,247
Total non-interest earning assets		78,654						73,375
Total Assets	$	2,232,047					$	2,100,173
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	450,372	$	4,707		2.09	$	481,381	$	2,118		0.88
Savings		234,611		536		0.46		264,871		182		0.14
Time		740,211		15,553		4.20		575,277		7,802		2.71
Total interest-bearing deposits		1,425,194		20,796		2.92		1,321,529		10,102		1.53
Short-term borrowings		59,843		692		2.31		98,846		1,576		3.19
Other borrowings		152,470		3,485		4.57		65,496		1,534		4.68
Total interest-bearing liabilities		1,637,507		24,973		3.05		1,485,871		13,212		1.78
Non-interest bearing liabilities:
Demand deposits		387,014						418,941
Other liabilities		26,735						20,560
Total non-interest bearing liabilities		413,749						439,501
Stockholders' equity		180,791						174,801
Total Liabilities and Stockholders' Equity	$	2,232,047					$	2,100,173
Net interest income/spread (tax equivalent basis)				30,029		2.06%				32,104		2.69%
Tax-equivalent basis adjustment				(394)						(369)
Net interest income			$	29,635					$	31,735
Net interest margin (tax equivalent basis)						2.79%						3.17%

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Rate/Volume Analysis. The following table shows the fully taxable equivalent effect of changes in volumes and rates on interest income and interest expense.

	Increase/(Decrease)
	Six months ended June 30, 2024 Compared to
	Six months ended June 30, 2023
	Variance due to
	Volume		Rate		Net
	(dollars in thousands)
Interest-earning assets:
Interest-bearing deposits with banks	$	1,452	$	144	$	1,596
Securities available for sale:
Taxable		(181)		322		141
Tax-exempt securities		(21)		—		(21)
Total securities		(202)		322		120
Loans receivable		2,496		5,474		7,970
Total interest-earning assets		3,746		5,940		9,686
Interest-bearing liabilities:
Interest-bearing demand and money market		(302)		2,892		2,590
Savings		(61)		415		354
Time		2,990		4,760		7,750
Total interest-bearing deposits		2,627		8,067		10,694
Short-term borrowings		(557)		(327)		(884)
Other borrowings		2,033		(82)		1,951
Total interest-bearing liabilities		4,103		7,658		11,761
Net interest income (tax-equivalent basis)	$	(357)	$	(1,718)	$	(2,075)

Comparison of Operating Results for the Six Months Ended June 30, 2024 to June 30, 2023

General

For the six months ended June 30, 2024, net income totaled $8,646,000 compared to net income of $12,285,000 in the six months ended June 30, 2023. The decrease in net income for the six months ended June 30, 2024 was due primarily to a $2,100,000 decrease in net interest income and an increase of $1,801,000 in operating expenses. Earnings per share for the six-months ended June 30, 2024 were $1.07 per share for basic shares and fully diluted shares, compared to $1.52 per share for basic shares and $1.51 for fully diluted shares for the six months ended June 30, 2023. The resulting annualized return on average assets and annualized return on average equity for the six months ended June 30, 2024 were 0.78% and 9.59%, respectively, compared to 1.18% and 14.17%, respectively, for the same period in 2023.

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The following table sets forth changes in net income:

(dollars in thousands)	Six months ended
	June 30, 2024 to June 30, 2023
Net income six months ended June 30, 2023	$	12,285
Change due to:
Net interest income		(2,100)
Provision for credit losses		(1,174)
Service charges and fees		182
Net gains on sales of securities and loans		241
Earnings and proceeds on bank-owned life insurance		78
Other income		17
Salaries and employee benefits		(280)
Occupancy, furniture and equipment		87
Data processing related		(456)
Professional fees		(484)
All other expenses		(668)
Income tax expense		918
Net income six months ended June 30, 2024	$	8,646

Net Interest Income

Net interest income on a fully taxable equivalent basis (fte) for the six months ended June 30, 2024 totaled $30,029,000 which was $2,075,000 lower than the comparable period in 2023. The decrease in net interest income was due primarily to a $11,762,000 increase in total interest expense, which was partially offset by a $9,686,000 increase in total interest income (fte). The (fte) net interest spread and net interest margin were 2.06% and 2.79%, respectively, for the six months ended June 30, 2024 compared to 2.69% and 3.17%, respectively, for the same period in 2023. See “Non-GAAP Financial Measures” described above beginning on page 38.

For the six-months ended June 30, 2024, interest income (fte) totaled $55,002,000, with a yield on average earning assets of 5.11% compared to $45,316,000 and 4.47% for the six months ended June 30, 2023. Average loans increased $87.4 million during the six-months ended June 30, 2024, over the comparable period of 2023, while average securities decreased $18.3 million compared to the six months ended June 30, 2023. Average earning assets totaled $2.153 billion for the six months ended June 30, 2024, an increase of $126.6 million, over average earning assets for the same period in 2023. See “Non-GAAP Financial Measures” described above beginning on page 38.

Interest expense for the six months ended June 30, 2024, totaled $24,973,000, at an average cost of 3.05%, compared to $13,212,000, at an average cost of 1.78% for the same period in 2023. The increase in interest expense during the six-months ended June 30, 2024 reflects the overall higher level of market interest rates. During the six months ended June 30, 2024, the average cost of time deposits, which is the most significant component of funding costs, increased 149 basis points compared to the same six-month period of last year, while short-term borrowing costs decreased 88 basis points and other borrowing costs decreased 11 basis points compared to the same six-month period of 2023.

Provision for Credit Losses

The Company had a release of provision for credit loss expense of $276,000 during the six months ended June 30, 2024, compared to a release of provision for credit loss expense of $1,450,000 for the six months ended June 30, 2023. The Company makes provisions for, or releases of credit loss expense in an amount necessary to maintain the allowance for credit losses at an acceptable level under the current expected credit loss methodology analysis. The Company had net charge-offs for the six months ended June 30, 2024, of $834,000, compared to $548,000 in the corresponding period in 2023. At June 30, 2024, the allowance for credit losses related to loans receivable was 1.08% of loans receivable. Additionally, at June 30, 2024, the allowance for credit losses related to loans receivable represented 233% of non-performing loans.

Other Income

Other income totaled 4,213,000 for the six months ended June 30, 2024, compared to $3,695,000 for the same period in 2023. The increase was due primarily to an increased level of service charges and fees, along with an decrease in losses on sales of securities. All other categories of other income increased $127,000, net, during the six months ended June 30, 2024.

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Other Expense

Other expense for the six months ended June 30, 2024 totaled $23,175,000, which was $1,801,000 or 8.4%, higher than the same period of 2023, due primarily to a $280,000 increase in salaries and employee benefits, a $484,000 increase in professional fees, a $225,000 increase in FDIC insurance, and a $456,000 increase in data processing expenses during the six months ended June 30, 2024. All other categories of other expense increased $356,000, net, during the six months ended June 30, 2024.

Income Tax Expense

Income tax expense totaled $2,303,000 for an effective tax rate of 21.0% for the six months ended June 30, 2024 compared to $3,221,000 for an effective tax rate of 20.8% for the six months ended June 30, 2023.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market Risk

Interest rate sensitivity and the repricing characteristics of assets and liabilities are managed by the Asset and Liability Management Committee (ALCO). The principal objective of ALCO is to maximize net interest income within acceptable levels of risk, which are established by policy. Interest rate risk is monitored and managed by using financial modeling techniques to measure the impact of changes in interest rates.

Net interest income, which is the primary source of the Company’s earnings, is impacted by changes in interest rates and the relationship of different interest rates. To manage the impact of the rate changes, the balance sheet must be structured so that repricing opportunities exist for both assets and liabilities at approximately the same time intervals. The Company uses net interest simulation to assist in interest rate risk management. The process includes simulating various interest rate environments and their impact on net interest income. As of June 30, 2024, the level of net interest income at risk in a rising or declining 200 basis point change in interest rates was within the Company’s policy limits. The Company’s policy allows for a decrease of no more than 10% of net interest income for a ± 200 basis point shift in interest rates.

Imbalances in repricing opportunities at a given point in time reflect interest-sensitivity gaps measured as the difference between rate-sensitive assets (RSA) and rate-sensitive liabilities (RSL). These are static gap measurements that do not take into account any future activity, and as such are principally used as early indications of potential interest rate exposures over specific intervals.

As of June 30, 2024, the Company had a negative 90-day interest sensitivity gap of $61.8 million or 2.76% of total assets, compared to a $43.6 million negative interest sensitivity gap, or 1.98% of total assets, as of December 31, 2023. At June 30, 2024, rate-sensitive assets repricing within 90 days increased $10.1 million since December 31, 2023 due to a $2.3 million increase in interest-bearing deposits with banks, and a $8.6 million increase in loans repricing. Rate-sensitive liabilities repricing within 90 days increased $28.3 million since year end due primarily to a $98.7 million increase in time deposits. A negative gap indicates that the balance sheet has a higher level of rate-sensitive liabilities (RSL) than rate-sensitive assets (RSA) at the time interval. This would indicate that in an increasing rate environment, the cost of interest-bearing liabilities would increase faster than the yield on interest-earning assets in the 90-day period. The repricing intervals are managed by ALCO strategies, including adjusting the average life of the investment portfolio, pricing of deposit liabilities to attract longer term time deposits, loan pricing to encourage variable rate products and evaluation of loan sales of long-term fixed rate mortgages.

Certain interest-bearing deposits with no stated maturity dates are included in the interest-sensitivity table below. The balances allocated to the respective time periods represent an estimate of the total outstanding balance that has the potential to migrate through withdrawal or transfer to time deposits, thereby impacting the interest-sensitivity position of the Company. The estimates were derived from an independently prepared non-maturity deposit study for the Bank which addressed the various deposit types and their pricing sensitivity to movements in market interest rates. The process involved analyzing correlations between product rates and market rates over a ten-year period. The Company believes the study provides pertinent data to support the assumptions used in modeling non-maturity deposits.

47

June 30, 2024

Rate Sensitivity Table

(dollars in thousands)

	3 Months		3-12 Months		1 to 3 Years		Over 3 Years		Total
Federal funds sold and interest-bearing deposits	$	39,942	$	—	$	—	$	—	$	39,942
Securities		15,224		37,501		72,113		272,740		397,578
Loans Receivable		246,304		278,851		637,443		478,757		1,641,355
Total RSA	$	301,470	$	316,352	$	709,556	$	751,497	$	2,078,875
Non-maturity deposits	$	59,844	$	179,529	$	467,464	$	361,491	$	1,068,328
Time Deposits		284,674		372,705		79,807		5,658		742,844
Borrowings		18,710		136,364		41,794		13,554		210,422
Total RSL	$	363,228	$	688,598	$	589,065	$	380,703	$	2,021,594
Interest Sensitivity Gap	$	(61,758)	$	(372,246)	$	120,491	$	370,794	$	57,281
Cumulative Gap		(61,758)		(434,004)		(313,513)		57,281
RSA/RSL-cumulative		83.00%		58.74%		80.89%		102.83%
December 31, 2023
Interest Sensitivity Gap	$	(43,601)	$	(255,745)	$	134,302	$	618,582	$	453,538
Cumulative Gap		(43,601)		(299,346)		(165,044)		453,538
RSA/RSL-cumulative		86.9%		66.3%		88.1%		128.5%

‎

48

Item 4. Controls and Procedures

The Company’s management evaluated, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, the effectiveness of the Company’s disclosure controls and procedures, as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s (the “Commission”) rules and forms.

There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

‎

49

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

On February 20, 2024, the Company was notified of a Complaint (the “Complaint”) entitled Ian Werkmeister vs. Wayne Bank, filed on February 12, 2024 in the United States District Court for the Middle District of Pennsylvania seeking class action status. The Plaintiff is seeking monetary recovery and other relief on behalf of themselves and one or more putative classes of other individuals similarly situated. The Complaint arises out of a widely reported data security incident involving MOVEit, a file sharing software used globally by government agencies, enterprise corporations, and financial institutions. In October of 2023, Wayne Bank was notified by its third-party information service provider of a cyber-incident that involved unauthorized access to Wayne Bank customer information in one of the vendor’s file transfer applications. The incident involved vulnerabilities discovered in MOVEit Transfer, a file transfer software used by the Bank’s vendor to support services provided by the vendor to Wayne Bank and its related institutions. MOVEit is a commonly used secure Managed File Transfer software, which supports file transfer activities used by thousands of organizations around the world, including government agencies and major financial firms. The vulnerability discovered in MOVEit did not involve any of Wayne Bank’s internal systems and did not impact the Bank’s ability to service its customers.

The Moveit cases have since been transferred and consolidated in the United States District Court for the District of Massachusetts (the “Court”) and are now entitled Moveit Customer Data Security Breach Litigation. On July 23, 2024, on behalf of all of the Defendants (including the Company) in this case, an omnibus Motion to Dismiss the cases for lack of Article III standing pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure was filed with the Court. A hearing on this motion has been scheduled for October 9, 2024.

The Company believes it has meritorious defenses to the claims asserted in the Complaint and intends to vigorously defend itself against such Complaint. While we continue to measure the impact of this cyber-incident, including certain remediation expenses and other potential liabilities, we do not currently believe this incident will have a material adverse effect on our business, operations, or financial results.

Other than the foregoing, neither the Company nor its subsidiaries are involved in any other pending legal proceedings, other than routine legal matters occurring in the ordinary course of business, which in the aggregate involve amounts which are believed by management to be immaterial to the consolidated financial condition or results of operations of the Company.

Item 1A. Risk Factors

Not applicable.

Item 2. Unregistered Sales of Equity Sales and Use of Proceeds

(a)    Unregistered Sales of Equity Securities. Not Applicable.

(b)    Use of Proceeds. Not Applicable

(c)    Issuer Purchases of Equity Securities. Set forth below is information regarding the Company’s stock repurchases during the quarter ended June 30, 2024.

	Issuer Purchases of Equity Securities
							Maximum Number
					Total Number of		(or Approximate
	Total				Shares (or Units)		Dollar Value) of Shares
	Number		Average		Purchased as Part of		(or Units)
	of Shares		Price Paid		Publicly		that May Yet Be
	(or Units)		Per Share		Announced Plans		Purchased Under the
	Purchased		(or Unit)		or Programs *		Plans or Programs
April 1 – 30, 2024		3,100	$	23.89		3,100		270,994
May 1 – 31, 2024		7,500		24.36		7,500		263,494
June 1 – 30, 2024		1,659		24.31		1,659		261,835
Total		12,259	$	24.24		12,259		261,835

50

*On March 30, 2021, the Company announced a share repurchase program for up to approximately 5% of the Company’s outstanding shares of common stock, or approximately 400,000 shares, in the open market, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.  On March 19, 2008, the Company announced its intention to repurchase up to 5% of its outstanding common stock (approximately 226,050 split-adjusted shares) in the open market. On November 10, 2011, the Company announced that it had increased the number of shares which may be repurchased under its open-market program to 5% of its currently outstanding shares, or approximately 270,600 split-adjusted shares. Both share repurchase programs are currently in effect.

Item 3. Defaults Upon Senior Securities

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Not applicable

‎

51

Item 6. Exhibits

No.	Description
3(i)	Amended and Restated Articles of Incorporation of Norwood Financial Corp (1)
3(ii)	Bylaws of Norwood Financial Corp(2)
4.0	Specimen Stock Certificate of Norwood Financial Corp (3)
10.1	Employment Agreement dated June 24, 2024, by and among Norwood Financial Corp, Wayne Bank and John M. McCaffery (4)
10.2	Executive Elective Deferral Plan (5)
10.3	Director Deferral Fee Plan (6)
31.1	Rule 13a-14(a)/15d-14(a) Certification of CEO
31.2	Rule 13a-14(a)/15d-14(a) Certification of CFO
32	Certification pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of Sarbanes Oxley Act of 2002
101	The following materials from the Company’s Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Income; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Changes in Stockholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements.
101.INS	Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1)Incorporated by reference into this document from Exhibit 3(i) to the Company’s Form 10-K filed with the Commission on March 13, 2020.

(2)Incorporated by reference from Exhibit 3(ii) to the Company’s Annual Report on Form 10-K filed with the Commission on March 14, 2024.

(3)Incorporated herein by reference into this document from the identically numbered Exhibits to the Company’s Form 10, Registration Statement initially filed in paper with the Commission on April 29, 1996, Registration No. 0-28364.

(4)Incorporated by reference into this document from Exhibit 10.1 to the Company’s Form 8-K filed with the Commission on June 24, 2024.

(5)Incorporated by reference into this document from Exhibit 10.1 to the Company’s Form 8-K filed with the Commission on June 21, 2024.

(6)Incorporated by reference into this document from Exhibit 10.2 to the Company’s Form 8-K filed with the Commission on June 21, 2024.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		NORWOOD FINANCIAL CORP
Date: August 8, 2024	By:	/s/ James O. Donnelly
		James O. Donnelly
		President and Chief Executive Officer
		(Principal Executive Officer)
Date: August 8, 2024		/s/ John M. McCaffery
		John M. McCaffery
		Executive Vice President and
		Chief Financial Officer
		(Principal Financial Officer)

53

EX-31.1

Exhibit 31.1

CERTIFICATION

I, James O. Donnelly, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Norwood Financial Corp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August8, 2024	/s/ James O. Donnelly
	James O. Donnelly
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, JohnM.  McCaffery, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Norwood Financial Corp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August8, 2024	/s/ JohnM.  McCaffery
	JohnM.  McCaffery
	Executive Vice President and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Norwood Financial Corp (the Company) on Form 10-Q for the period ending June  30,2024 as filed with the Securities and Exchange Commission on the date hereof (the Report), we, James O. Donnelly,President and Chief Executive Officer, and JohnM.  McCaffery, Executive Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James O. Donnelly	/s/ JohnM.  McCaffery
James O. Donnelly	JohnM.  McCaffery
President and Chief Executive Officer	Executive Vice President and Chief Financial Officer
August8, 2024

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Transition Report	false
Entity File Number	0-28364
Entity Registrant Name	Norwood Financial Corp
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	23-2828306
Entity Address, Address Line One	717 Main Street
Entity Address, City or Town	Honesdale
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18431
City Area Code	570
Local Phone Number	253-1455
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	NWFL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,085,377
Entity Central Index Key	0001013272
Amendment Flag	false
Document Fiscal Period Focus	Q2

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 29,903,000	$ 28,533,000
Interest-bearing deposits with banks	39,492,000	37,587,000
Cash and cash equivalents	69,395,000	66,120,000
Securities available for sale, at fair value (net of allowance for credit losses of $0)	397,578,000	406,259,000
Loans receivable (net of allowance for credit losses of $17,806 and $18,968)	1,623,549,000	1,584,650,000
Regulatory stock, at cost	6,443,000	7,318,000
Bank premises and equipment, net	18,265,000	17,838,000
Bank owned life insurance	46,121,000	46,439,000
Accrued interest receivable	8,329,000	8,123,000
Foreclosed real estate owned	0	97,000
Deferred tax assets, net	21,707,000	21,353,000
Goodwill	29,266,000	29,266,000
Other intangibles	183,000	221,000
Other assets	14,480,000	13,395,000
TOTAL ASSETS	2,235,316,000	2,201,079,000
Deposits:
Non-interest bearing demand	391,849,000	399,545,000
Interest-bearing	1,419,323,000	1,395,614,000
Total deposits	1,811,172,000	1,795,159,000
Short-term borrowings	62,335,000	74,076,000
Other borrowings	148,087,000	124,236,000
Accrued interest payable	13,329,000	10,510,000
Other liabilities	18,206,000	16,028,000
TOTAL LIABILITIES	2,053,129,000	2,020,009,000
STOCKHOLDERS' EQUITY
Preferred stock, no par value per share, authorized: 5,000,000 shares; issued: none
Common stock, $0.10 par value per share, authorized: 20,000,000 shares, issued: 2024: 8,311,851 shares, 2023: 8,310,847 shares	831,000	831,000
Surplus	98,082,000	97,700,000
Retained earnings	139,070,000	135,284,000
Treasury stock at cost: 2024: 219,881 shares; 2023: 200,690 shares	(5,977,000)	(5,397,000)
Accumulated other comprehensive loss	(49,819,000)	(47,348,000)
TOTAL STOCKHOLDERS’ EQUITY	182,187,000	181,070,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 2,235,316,000	$ 2,201,079,000

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Consolidated Balance Sheets [Abstract]
Securities available for sale, at fair value, allowance for credit losses	$ 0	$ 0
Net of Allowance for Loan losses	$ 17,806,000	$ 18,968,000
Preferred Stock, No Par Value
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par Value Per Share	$ 0.10	$ 0.10
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	8,311,851	8,310,847
Treasury Stock, Shares	219,881	200,690

XML

Consolidated Statements Of Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
INTEREST INCOME
Loans receivable, including fees	$ 24,121,000	$ 20,702,000	$ 47,802,000	$ 39,860,000
Securities	2,584,000	2,481,000	5,109,000	4,986,000
Other	966,000	53,000	1,697,000	101,000
Total interest income	27,671,000	23,236,000	54,608,000	44,947,000
INTEREST EXPENSE
Deposits	10,687,000	5,740,000	20,796,000	10,102,000
Short-term borrowings	356,000	797,000	692,000	1,576,000
Other borrowings	1,703,000	1,057,000	3,485,000	1,534,000
Total interest expense	12,746,000	7,594,000	24,973,000	13,212,000
NET INTEREST INCOME	14,925,000	15,642,000	29,635,000	31,735,000
PROVISION FOR (RELEASE OF) CREDIT LOSS EXPENSE	347,000	(1,750,000)	(276,000)	(1,450,000)
NET INTEREST INCOME AFTER PROVISION FOR (RELEASE OF) CREDIT LOSSES	14,578,000	17,392,000	29,911,000	33,185,000
OTHER INCOME
Other income	1,880,000	1,726,000	3,592,000	3,402,000
Net realized gains on sales of securities		(212,000)		(209,000)
Gains on sales of loans, net	36,000	10,000	42,000	10,000
Earnings and proceeds on bank owned life insurance	253,000	229,000	520,000	442,000
Other	189,000	174,000	341,000	346,000
Total other income	2,207,000	1,783,000	4,213,000	3,695,000
OTHER EXPENSES
Salaries and employee benefits	5,954,000	5,842,000	12,090,000	11,810,000
Occupancy, furniture & equipment, net	1,229,000	1,314,000	2,489,000	2,576,000
Data processing and related operations	1,024,000	822,000	2,046,000	1,590,000
Taxes, other than income	179,000	162,000	272,000	323,000
Professional fees	508,000	323,000	1,092,000	608,000
Federal Deposit Insurance Corporation insurance	309,000	244,000	670,000	445,000
Foreclosed real estate	15,000	74,000	36,000	103,000
Amortization of intangibles	19,000	23,000	38,000	46,000
Other	2,207,000	2,134,000	4,442,000	3,873,000
Total other expenses	11,444,000	10,938,000	23,175,000	21,374,000
INCOME BEFORE INCOME TAXES	5,341,000	8,237,000	10,949,000	15,506,000
INCOME TAX EXPENSE	1,128,000	1,734,000	2,303,000	3,221,000
Net income	$ 4,213,000	$ 6,503,000	$ 8,646,000	$ 12,285,000
BASIC EARNINGS PER SHARE	$ 0.52	$ 0.81	$ 1.07	$ 1.52
DILUTED EARNINGS PER SHARE	$ 0.52	$ 0.81	$ 1.07	$ 1.51
Service Charges And Fees [Member]
OTHER INCOME
Other income	$ 1,504,000	$ 1,353,000	$ 2,847,000	$ 2,665,000
Income From Fiduciary Activities [Member]
OTHER INCOME
Other income	$ 225,000	$ 229,000	$ 463,000	$ 441,000

XML

Consolidated Statements Of Comprehensive Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Consolidated Statements Of Comprehensive Income [Abstract]
Net income	$ 4,213,000	$ 6,503,000	$ 8,646,000	$ 12,285,000
Investment securities available for sale:
Unrealized holding (losses) gains	(533,000)	(5,636,000)	(3,129,000)	3,719,000
Tax Effect	113,000	1,183,000	658,000	(780,000)
Reclassification of investment securities losses recognized in net income		212,000		209,000
Tax Effect		(45,000)		(44,000)
Other comprehensive (loss) income	(420,000)	(4,286,000)	(2,471,000)	3,104,000
Comprehensive Income (loss)	$ 3,793,000	$ 2,217,000	$ 6,175,000	$ 15,389,000

XML

Consolidated Statements Of Changes In Stockholders’ Equity - USD ($)	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Total
Beginning balance at Dec. 31, 2022	$ 829,000	$ 96,897,000	$ (2,011,000)	$ 130,020,000	$ (3,308,000)	$ (57,353,000)	$ (2,011,000)	$ 167,085,000
Beginning balance, shares at Dec. 31, 2022	8,291,401				124,650
Net Income				12,285,000				12,285,000
Other comprehensive (loss) income						3,104,000		3,104,000
Cash dividends declared				(4,711,000)				(4,711,000)
Acquisition of treasury stock					$ (3,077,000)			(3,077,000)
Acquisition of treasury stock, shares					113,526
Compensation expense related to restricted stock		224,000						224,000
Stock options exercised		(44,000)			$ 378,000			334,000
Stock options exercised, shares					(14,250)
Compensation expense related to stock options		191,000						191,000
Ending balance, shares at Jun. 30, 2023	8,291,401				223,926
Ending balance at Jun. 30, 2023	$ 829,000	97,268,000		135,583,000	$ (6,007,000)	(54,249,000)		173,424,000
Beginning balance at Mar. 31, 2023	$ 829,000	97,063,000		131,416,000	$ (2,930,000)	(49,963,000)		176,415,000
Beginning balance, shares at Mar. 31, 2023	8,291,401				110,400
Net Income				6,503,000				6,503,000
Other comprehensive (loss) income						(4,286,000)		(4,286,000)
Cash dividends declared				(2,336,000)				(2,336,000)
Acquisition of treasury stock					$ (3,077,000)			(3,077,000)
Acquisition of treasury stock, shares					113,526
Compensation expense related to restricted stock		110,000						110,000
Compensation expense related to stock options		95,000						95,000
Ending balance, shares at Jun. 30, 2023	8,291,401				223,926
Ending balance at Jun. 30, 2023	$ 829,000	97,268,000		135,583,000	$ (6,007,000)	(54,249,000)		173,424,000
Beginning balance at Dec. 31, 2023	$ 831,000	97,700,000		135,284,000	$ (5,397,000)	(47,348,000)		181,070,000
Beginning balance, shares at Dec. 31, 2023	8,310,847				200,690
Net Income				8,646,000				8,646,000
Other comprehensive (loss) income						(2,471,000)		(2,471,000)
Cash dividends declared				(4,860,000)				(4,860,000)
Acquisition of treasury stock					$ (580,000)			(580,000)
Acquisition of treasury stock, shares					19,191
Compensation expense related to restricted stock, shares	1,004,000
Compensation expense related to restricted stock		207,000						207,000
Compensation expense related to stock options		175,000						175,000
Ending balance, shares at Jun. 30, 2024	8,311,851				219,881
Ending balance at Jun. 30, 2024	$ 831,000	98,082,000		139,070,000	$ (5,977,000)	(49,819,000)		182,187,000
Beginning balance at Mar. 31, 2024	$ 831,000	97,893,000		137,285,000	$ (5,397,000)	(49,399,000)		181,213,000
Beginning balance, shares at Mar. 31, 2024	8,310,847				200,690
Net Income				4,213,000				4,213,000
Other comprehensive (loss) income						(420,000)		(420,000)
Cash dividends declared				(2,428,000)				(2,428,000)
Acquisition of treasury stock					$ (580,000)			(580,000)
Acquisition of treasury stock, shares					19,191
Compensation expense related to restricted stock, shares	1,004
Compensation expense related to restricted stock		103,000						103,000
Compensation expense related to stock options		86,000						86,000
Ending balance, shares at Jun. 30, 2024	8,311,851				219,881
Ending balance at Jun. 30, 2024	$ 831,000	$ 98,082,000		$ 139,070,000	$ (5,977,000)	$ (49,819,000)		$ 182,187,000

XML

Consolidated Statements Of Stockholders’ Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Consolidated Statements of Changes in Stockholders’ Equity [Abstract]
Cash dividends declared	$ 0.30	$ 0.29	$ 0.60	$ 0.58

XML

Consolidated Statements Of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 8,646,000	$ 12,285,000
Adjustments to reconcile net income to net cash provided by operating activities:
(Release of) credit losses	(276,000)	(1,450,000)
Depreciation	660,000	706,000
Amortization of intangible assets	38,000	46,000
Deferred income taxes	303,000	(577,000)
Net amortization of securities premiums and discounts	221,000	457,000
Net realized gain on sales of securities		209,000
Earnings and proceeds on life insurance policies	(520,000)	(442,000)
Gain (loss) on sales and write-downs of fixed assets and foreclosed real estate owned, net	(32,000)	177,000
Net amortization of loan fees	297,000	272,000
Net gain on sale of loans	(42,000)	(10,000)
Mortgage loans originated for sale	(2,360,000)	1,234,000
Proceeds from sale of loans originated for sale	2,402,000	(1,224,000)
Compensation expense related to stock options	175,000	191,000
Compensation expense related to restricted stock	207,000	224,000
(Increase) in accrued interest receivable	(206,000)	(359,000)
Increase in accrued interest payable	2,819,000	4,448,000
Other, net	1,024,000	38,000
Net cash provided by operating activities	13,356,000	16,225,000
Securities available for sale:
Proceeds from sales		3,345,000
Proceeds from maturities and principal reductions on mortgage-backed securities	29,321,000	15,223,000
Purchases	(23,990,000)
Purchase of regulatory stock	(4,684,000)	(11,168,000)
Redemption of regulatory stock	5,559,000	8,662,000
Net increase in loans	(38,824,000)	(104,543,000)
Proceeds from bank-owned life insurance	838,000
Purchase of bank-owned life insurance		(2,000,000)
Purchase of premises and equipment	(1,087,000)	(268,000)
Proceeds from sales of foreclosed real estate owned	109,000	195,000
Net cash used in investing activities	(32,758,000)	(90,554,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	16,013,000	4,270,000
Net (decrease) increase in short-term borrowings	(11,741,000)	19,075,000
Repayments of other borrowings	(36,149,000)	(20,313,000)
Proceeds from other borrowings	60,000,000	80,000,000
Stock options exercised		334,000
Purchase of treasury stock	(580,000)	(3,077,000)
Cash dividends paid	(4,866,000)	(4,737,000)
Net cash provided by financing activities	22,677,000	75,552,000
Increase in cash and cash equivalents	3,275,000	1,223,000
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	66,120,000	31,866,000
CASH AND CASH EQUIVALENTS, END OF PERIOD	69,395,000	33,089,000
Cash payments for:
Interest on deposits and borrowings	22,154,000	8,764,000
Income taxes paid, net of refunds	657,000	3,502,000
Supplemental Schedule of Noncash Investing Activities:
Transfers of loans to foreclosed real estate and repossession of other assets	798,000	988,000
Dividends payable	$ 2,427,000	$ 2,340,000

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2024

Basis of Presentation [Abstract]

Basis of Presentation

1.           Basis of Presentation

The unaudited consolidated financial statements include the accounts of Norwood Financial Corp (the “Company”) and its wholly-owned subsidiary, Wayne Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., and WTRO Properties, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the consolidated financial position and results of operations of the Company. The operating results for the three-month and six- month periods ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other future interim period.

XML

Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue Recognition [Abstract]

Revenue Recognition

2.           Revenue Recognition

Under ASC Topic 606, management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans sold and earnings on bank-owned life insurance are not within the scope of this Topic.

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30:

	Three months ended
	June 30,
(dollars in thousands)
Noninterest Income	2024		2023
In-scope of Topic 606:
Service charges on deposit accounts	$	113	$	110
ATM fees		107		106
Overdraft fees		345		342
Safe deposit box rental		20		22
Loan related service fees		189		131
Debit card fees		616		576
Fiduciary activities		225		229
Commissions on mutual funds and annuities		76		36
Gains on sales of other real estate owned		32		—
Other income		157		174
Noninterest Income (in-scope of Topic 606)		1,880		1,726
Out-of-scope of Topic 606:
Net realized gains (losses) on sales of securities		—		(212)
Loan servicing fees		38		30
Gains on sales of loans		36		10
Earnings on and proceeds from bank-owned life insurance		253		229
Noninterest Income (out-of-scope of Topic 606)		327		57
Total Noninterest Income	$	2,207	$	1,783

	Six months ended
	June 30,
(dollars in thousands)
Noninterest Income	2024		2023
In-scope of Topic 606:
Service charges on deposit accounts	$	225	$	214
ATM fees		213		212
Overdraft fees		700		661
Safe deposit box rental		45		48
Loan related service fees		319		284
Debit card fees		1,142		1,135
Fiduciary activities		463		441
Commissions on mutual funds and annuities		144		61
Gains on sales of other real estate owned		32		—
Other income		309		346
Noninterest Income (in-scope of Topic 606)		3,592		3,402
Out-of-scope of Topic 606:
Net realized gains (losses) on sales of securities		—		(209)
Loan servicing fees		59		50
Gains on sales of loans		42		10
Earnings on and proceeds from bank-owned life insurance		520		442
Noninterest Income (out-of-scope of Topic 606)		621		293
Total Noninterest Income	$	4,213	$	3,695

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

3.          Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock, and are determined using the treasury stock method.

The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share.

(in thousands)	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Weighted average shares outstanding	8,090	8,101	8,104	8,138
Less: Unvested restricted shares	(45)	(42)	(46)	(43)
Basic EPS weighted average shares outstanding	8,045	8,059	8,058	8,095
Basic EPS weighted average shares outstanding	8,045	8,059	8,058	8,095
Add: Dilutive effect of stock options and restricted shares	3	16	3	17
Diluted EPS weighted average shares outstanding	8,048	8,075	8,061	8,112

For the three and six month periods ended June 30, 2024, there were 191,850 stock options that were anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of the Company’s common stock of $25.38 per share as of June 30, 2024.

For the three and six month periods ended June 30, 2023, there were 110,350 stock options that were anti-dilutive and thereby excluded from the earnings per share calculations based upon the closing price of the Company’s common stock of $29.53 per share as of June 30, 2023.

 

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Stock-Based Compensation [Abstract]

Stock-Based Compensation

4.           Stock-Based Compensation

During the six-month period ended June 30, 2024, no stock options were granted. As of June 30, 2024, there was $171,000 of total unrecognized compensation cost related to non-vested options granted in 2024 and 2023 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2024. Compensation costs related to stock options amounted to $175,000 and $191,000 during the six-month periods ended June 30, 2024 and 2023, respectively.

A summary of the Company’s stock option activity for the six-month period ended June 30, 2024 is as follows:

		Weighted
		Average Exercise		Weighted Average		Aggregate
		Price		Remaining		Intrinsic Value
	Options	Per Share		Contractual Term		($000)
Outstanding at January 1, 2024	215,725	$	29.81	6.9	Yrs.	$	759
Granted	—		-	-
Exercised	—		-	-
Forfeited	(1,500)		36.02	5.7
Outstanding at June 30, 2024	214,225	$	30.62	6.4	Yrs.	$	100
Exercisable at June 30, 2024	175,725	$	30.83	5.7	Yrs.	$	100

Intrinsic value represents the amount by which the market price of the stock on the measurement date exceeded the exercise price of the option. The market price was $25.38 per share as of June 30, 2024 and $32.91 per share as of December 31, 2023.

A summary of the Company’s restricted stock activity for the six-month periods ended June 30, 2024 and 2023 is as follows:

	2024			2023
		Weighted-Average				Weighted-Average
	Number of	Grant Date		Number of	Grant Date
	Restricted Stock	Fair Value		Restricted Stock	Fair Value
Non-vested, January 1,	45,966	$	29.90	44,460	$	30.12
Granted	1,004		24.90	—		—
Vested	(1,200)		25.71	(3,000)		25.71
Forfeited	—		—	—		—
Non-vested, June 30,	45,770	$	29.35	41,460	$	30.44

The expected future compensation expense relating to the 45,770 shares of non-vested restricted stock outstanding as of June 30, 2024 is $1,174,000. This cost will be recognized over the remaining vesting period of 4.5 years. Compensation costs related to restricted stock amounted to $207,000 and $224,000 during the six-month periods ended June 30, 2024 and 2023, respectively.

 

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2024

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

5.           Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) (in thousands) by component net of tax for the three and six months ended June 30, 2024 and 2023:

	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of December 31, 2023	$	(47,348)
Other comprehensive loss before reclassification		(2,471)
Amount reclassified from accumulated other comprehensive loss		-
Total other comprehensive loss		(2,471)
Balance as of June 30, 2024	$	(49,819)
	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of December 31, 2022	$	(57,353)
Other comprehensive income before reclassification		2,939
Amount reclassified from accumulated other comprehensive income		165
Total other comprehensive income		3,104
Balance as of June 30, 2023	$	(54,249)

	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of March 31, 2024	$	(49,399)
Other comprehensive loss before reclassification		(420)
Amount reclassified from accumulated other comprehensive loss		-
Total other comprehensive loss		(420)
Balance as of June 30, 2024	$	(49,819)
	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of March 31, 2023	$	(49,963)
Other comprehensive loss before reclassification		(4,453)
Amount reclassified from accumulated other comprehensive loss		167
Total other comprehensive loss		(4,286)
Balance as of June 30, 2023	$	(54,249)

(a)All amounts are net of tax. Amounts in parentheses indicate debits.

The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) (in thousands) for the three and six months ended June 30, 2024 and 2023:

	Amount Reclassified
	From Accumulated
	Other
	Comprehensive
	Income (Loss) (a)				Affected Line Item in
	Three months ended				Consolidated
	June 30,				Statements
Details about other comprehensive income	2024		2023		of Income
Unrealized losses on available for sale securities	$	—	$	(212)	Net realized (losses) gains on sales of securities
Tax effect		—		45	Income tax expense
	$	—	$	(167)
	Six months ended
	June 30,
	2024		2023
Unrealized losses on available for sale securities	$	—	$	(209)	Net realized (losses) gains on sales of securities
Tax effect		—		44	Income tax expense
	$	—	$	(165)

(a) Amounts in parentheses indicate debits to net income

 

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Off-Balance Sheet Financial Instruments and Guarantees

6 Months Ended

Jun. 30, 2024

Off-Balance Sheet Financial Instruments and Guarantees [Abstract]

Off-Balance Sheet Financial Instruments and Guarantees

6.           Off-Balance Sheet Financial Instruments and Guarantees

The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

A summary of the Bank’s financial instrument commitments is as follows:

(in thousands)	June 30,
	2024		2023
Commitments to grant loans	$	94,714	$	96,514
Unfunded commitments under lines of credit		157,184		162,256
Standby letters of credit		7,221		13,809
	$	259,119	$	272,579

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer and generally consists of real estate.

The Bank does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit written are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank, generally, holds

collateral and/or personal guarantees supporting these commitments. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees.

 

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Securities

6 Months Ended

Jun. 30, 2024

Securities [Abstract]

Securities

7.           Securities

The amortized cost, gross unrealized gains and losses, approximate fair value, and allowance for credit losses of securities available for sale were as follows:

	June 30, 2024
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
	Cost		Gains		Losses			Losses	Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	41,257	$	-	$	(2,342)	$	-	$	38,915
U.S. Government agencies		27,551		21		(2,628)		-		24,944
States and political subdivisions		150,525		-		(23,877)		-		126,648
Mortgage-backed securities-
government sponsored entities		241,933		-		(34,862)		-		207,071
Total debt securities	$	461,266	$	21	$	(63,709)	$	-	$	397,578

	December 31, 2023
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
	Cost		Gains		Losses			Losses	Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	55,968	$	14	$	(2,382)	$	-	$	53,600
U.S. Government agencies		18,486		-		(2,490)		-		15,996
States and political subdivisions		151,764		-		(22,285)		-		129,479
Mortgage-backed securities-government
sponsored entities		240,600		-		(33,416)		-		207,184
Total debt securities	$	466,818	$	14	$	(60,573)	$	-	$	406,259

The following tables summarize debt securities available for sale in a loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	34,929	$	(2,342)	$	34,929	$	(2,342)
U.S. Government agencies		5,979		(24)		15,943		(2,604)		21,922		(2,628)
States and political subdivisions		536		(14)		124,897		(23,863)		125,433		(23,877)
Mortgage-backed securities-government sponsored entities		14,375		(128)		192,696		(34,734)		207,071		(34,862)
	$	20,890	$	(166)	$	368,465	$	(63,543)	$	389,355	$	(63,709)

	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	40,833	$	(2,382)	$	40,833	$	(2,382)
U.S. Government agencies		-		-		15,996		(2,490)		15,996		(2,490)
States and political subdivisions		2,261		(12)		125,452		(22,273)		127,713		(22,285)
Mortgage-backed securities-government sponsored entities		-		-		207,184		(33,416)		207,184		(33,416)
	$	2,261	$	(12)	$	389,465	$	(60,561)	$	391,726	$	(60,573)

At June 30, 2024, the Company had 9 debt securities in an unrealized loss position in the less than twelve months category and 331 debt securities in the twelve months or more category. In Management’s opinion the unrealized losses reflect changes in interest rates subsequent to the acquisition of specific securities. The Company concluded that the decline in the value of these securities was not indicative of a credit loss. The Company did not recognize any credit losses on these available for sale debt securities for the six months ended June 30, 2024 and 2023. The Company does not have the intent to sell the securities and it is more likely than not that it will not have to sell the securities before recovery of its cost basis.

The amortized cost and fair value of debt securities as of June 30, 2024 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.

	Available for Sale
	Amortized Cost		Fair Value
		(In Thousands)
Due in one year or less	$	23,400	$	23,141
Due after one year through five years		39,178		36,130
Due after five years through ten years		76,727		63,253
Due after ten years		80,028		67,983
		219,333		190,507
Mortgage-backed securities-government sponsored entities		241,933		207,071
	$	461,266	$	397,578

Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands):

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Gross realized gains	$	—	$	—	$	—	$	4
Gross realized losses		—		(212)		—		(213)
Net realized gains (losses)	$	—	$	(212)	$	—	$	(209)
Proceeds from sales of securities	$	—	$	1,363	$	—	$	3,345

Securities with a carrying value of $345,310,000 and $344,204,000 at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

 

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Loans Receivable and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

Loans Receivable and Allowance for Credit Losses [Abstract]

Loans Receivable and Allowance for Credit Losses

8.           Loans Receivable and Allowance for Credit Losses

Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands):

	June 30, 2024				December 31, 2023
Real Estate Loans:
Residential	$	317,507	19.3	%	$	316,546	19.7	%
Commercial		685,212	41.8			675,156	42.1
Agricultural		60,963	3.7			63,859	4.0
Construction		48,030	2.9			51,453	3.2
Commercial loans		208,658	12.7			200,576	12.5
Other agricultural loans		31,281	1.9			31,966	2.0
Consumer loans to individuals		289,880	17.7			264,321	16.5
Total loans		1,641,531	100.0	%		1,603,877	100.0	%
Deferred fees, net		(176)				(259)
Total loans receivable		1,641,355				1,603,618
Allowance for credit losses		(17,806)				(18,968)
Net loans receivable	$	1,623,549			$	1,584,650

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of June 30, 2024 and December 31, 2023, foreclosed real estate owned totaled $0 and $97,000, respectively. During the six months ended June 30, 2024, there were no additions to the foreclosed real estate category. As of June 30, 2024, the Company has initiated formal foreclosure proceedings on 8 properties classified as consumer residential mortgages with an aggregate carrying value of $364,000.

The following tables show the amount of loans in each category that were individually and collectively evaluated for credit loss:

	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
June 30, 2024	(In thousands)
Individually evaluated	$	953	$	5,780	$	—	$	—	$	108	$	—	$	800	$	7,641
Collectively evaluated		316,554		679,432		60,963		48,030		208,550		31,281		289,080		1,633,890
Total Loans	$	317,507	$	685,212	$	60,963	$	48,030	$	208,658	$	31,281	$	289,880	$	1,641,531

	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

Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death

occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review, in conjunction with a third-party consultant, also annually reviews all criticized credits and relationships of $1,500,000 and over to re-affirm risk ratings.

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2024 and December 31, 2023 (in thousands):

	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
June 30, 2024
Real Estate loans
Residential	$	315,355	$	1,150	$	49	$	-	$	953	$	2,152	$	317,507
Commercial		678,714		718		-		-		5,780		6,498		685,212
Agricultural		60,944		19		-		-		-		19		60,963
Construction		47,991		-		39		-		-		39		48,030
Commercial loans		208,280		236		34		-		108		378		208,658
Other agricultural loans		31,281		-				-		-		-		31,281
Consumer loans		288,278		616		186		-		800		1,602		289,880
Total	$	1,630,843	$	2,739	$	308	$	-	$	7,641	$	10,688	$	1,641,531

	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

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for credit losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance.

The following table presents the allowance for credit losses by the classes of the loan portfolio:

(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		-		-		-		-		(85)		-		(939)		(1,024)
Recoveries		42		104		-		-		-		-		44		190
(Release of) Provision for credit losses		(262)		(2,423)		(17)		(93)		913		36		1,518		(328)
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806
Ending balance individually evaluated	$	-	$	-	$	-	$	-	$	-	$	-	$	164	$	164
Ending balance collectively evaluated	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	3,913	$	17,642

(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2024	$	1,197	$	9,831	$	84	$	831	$	1,987	$	168	$	3,922	$	18,020
Charge Offs		-		-		-		-		(30)		-		(500)		(530)
Recoveries		-		2		-		-		-		-		17		19
(Release of) Provision for credit losses		(66)		(281)		(43)		9		78		(38)		638		297
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806

(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		(6)		(154)		-		-		(147)		-		(308)		(615)
Recoveries		6		9		-		-		6		-		46		67
Provision for credit losses		(24)		(2,422)		(4)		22		133		(41)		902		(1,434)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483
Ending balance individually evaluated ‎for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Ending balance collectively evaluated ‎for impairment	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483

(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2023	$	1,359	$	13,725	$	121	$	703	$	1,158	$	82	$	2,297	$	19,445
Charge Offs		(6)		(42)		-		-		(97)		-		(106)		(251)
Recoveries		—		3		-		-		—		-		20		23
Provision for loan losses		(89)		(2,433)		(66)		116		220		4		514		(1,734)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483

During the six months ended June 30, 2024, the Company recorded a release of provision for credit loss expense totaling $328,000. Factors impacting the release include changes in the cumulative loss rates applied to the respective loan pools due to loss activity being added or subtracted with the passage of time, and variances in Qualitative Factors and Economic Factors.

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience. The Company chose to apply qualitative factors based on “quantitative metrics” which link the quantifiable metrics to historical changes in the qualitative factor categories. The Company also chose to apply economic projections to the model. A select group of economic indicators was utilized which was then correlated to the historical loss experience of the Company and its peers. Based on the correlation results, the economic adjustments are then weighted for relevancy and applied to the individual loan pools.

The following table presents the carrying value of loans on nonaccrual status and loans past due over 90 days still accruing interest (in thousands):

		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
June 30, 2024
Real Estate loans
Residential	$	953	$	-	$	953	$	-	$	953
Commercial		5,780		-		5,780		-		5,780
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		108		-		108		-		108
Other agricultural loans		-		-		-		-		-
Consumer loans		636		164		800		-		800
Total	$	7,477	$	164	$	7,641	$	-	$	7,641

		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

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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	26,939	$	79,565	$	129,495	$	108,654	$	65,325	$	241,147	$	14,150	$	-	$	665,275
Special Mention		-		300		311		2,431		-		2,835		294		-		6,171
Substandard		-		-		2,944		3,217		1,424		6,181		-		-		13,766
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	26,939	$	79,865	$	132,750	$	114,302	$	66,749	$	250,163	$	14,444	$	-	$	685,212
Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real Estate - Agriculture
Risk Rating
Pass	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	31,241	$	444	$	-	$	60,025
Special Mention		-		-		-		-		-		788		150		-		938
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	32,029	$	594	$	-	$	60,963
Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk Rating
Pass	$	30,567	$	38,975	$	33,464	$	21,458	$	12,015	$	21,717	$	42,745	$	-	$	200,941
Special Mention		-		288		423		678		-		117		721		-		2,227
Substandard		-		-		2,845		557		44		49		1,995		-		5,490
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	30,567	$	39,263	$	36,732	$	22,693	$	12,059	$	21,883	$	45,461	$	-	$	208,658
Commercial loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	4	$	51	$	30	$	-	$	85
Other agricultural loans
Risk Rating
Pass	$	1,655	$	2,408	$	4,542	$	2,707	$	2,647	$	5,136	$	10,571	$	-	$	29,666
Special Mention		-		-		-		1		-		142		1,472		-		1,615
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-

Total	$	1,655	$	2,408	$	4,542	$	2,708	$	2,647	$	5,278	$	12,043	$	-	$	31,281
Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total
Risk Rating
Pass	$	61,163	$	123,463	$	179,762	$	136,951	$	87,417	$	299,241	$	67,910	$	-	$	955,907
Special Mention		-		588		734		3,110		-		3,882		2,637		-		10,951
Substandard		-		-		5,789		3,774		1,468		6,230		1,995		-		19,256
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	61,163	$	124,051	$	186,285	$	143,835	$	88,885	$	309,353	$	72,542	$	-	$	986,114

‎

														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 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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	5,508	$	33,444	$	62,335	$	55,302	$	33,460	$	97,694	$	28,811	$	-	$	316,554
Nonperforming		-		137		-		189		-		608		19		-		953
Total	$	5,508	$	33,581	$	62,335	$	55,491	$	33,460	$	98,302	$	28,830	$	-	$	317,507
Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Payment Performance
Performing	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030
Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans to individuals
Payment Performance
Performing	$	67,755	$	110,808	$	63,631	$	19,965	$	11,249	$	14,785	$	887	$	-	$	289,080
Nonperforming		-		241		358		135		31		35		-		-		800
Total	$	67,755	$	111,049	$	63,989	$	20,100	$	11,280	$	14,820	$	887	$	-	$	289,880

Consumer loans to individuals
Current period gross charge-offs	$	38	$	216	$	479	$	113	$	58	$	35	$	-	$	-	$	939
Total
Payment Performance
Performing	$	84,666	$	168,179	$	135,779	$	75,726	$	44,709	$	112,694	$	31,911	$	-	$	653,664
Nonperforming		-		378		358		324		31		643		19		-		1,753
Total	$	84,666	$	168,557	$	136,137	$	76,050	$	44,740	$	113,337	$	31,930	$	-	$	655,417

														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

Occasionally, the Bank modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Bank provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. During the six months ended June 30, 2024, there were 6 modifications made to borrowers experiencing financial difficulty. The following table presents modifications made to borrowers experiencing financial difficulty:

Principal Payment Deferral
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate loans	$	7,042	1.03	%	Deferred Principal for 2-12 months
Commercial loans		3,416	1.64		Deferred Principal for 2-12 months
Other agricultural loans		363	1.16		Deferred Principal for 4-6 months
Consumer loans		30	0.01		Deferred Principal for 12 months
Total	$	10,851
Payment Reduction
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate loans	$	391	0.06	%	Reduced monthly payment, which resulted in a balloon payment at maturity
Total	$	391
Combination - Term Adjustment and Interest Rate Adjustment
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Residential real estate loans	$	41	0.01	%	Reduced term by 5 years and increased interest rate from 4.75% to 9.25%
Consumer loans		29	0.01		Increase term by 6 months and increased interest rate from 9.19% to 12.99%
Total	$	70

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified (in thousands):

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
		Principal Payment Deferral		Principal Payment Adjustment		Combination - Term Extension and Interest Rate Adjustment
Commercial real estate loans	$	533	$	-	$	-
Commercial loans		32		-		-
Other agricultural loans		190		-		-
	$	755	$	-	$	-

The following table depicts the performance of loans that have been modified in the last 12 months for which a payment default has occured (in thousands):

Payment Status (Amortized Cost Basis)
		30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total Past Due
Commercial real estate loans	$	533	$	-	$	-	$	533
Commercial loans		32		-		-		32
Other agricultural loans		190		-		-		190
	$	755	$	-	$	-	$	755

The Company’s primary business activity as of June 30, 2024 was with customers located in northeastern Pennsylvania and the New York counties of Delaware, Sullivan, Ontario, Otsego and Yates. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to repay their loans is influenced by the region’s economy.

As of June 30, 2024, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $146.1 million of loans outstanding, or 8.9% of total loans outstanding, and residential rentals with loans outstanding of $112.8 million, or 6.9% of loans outstanding. For the six months ended June 30, 2024, the Company recognized charge offs of $0 on commercial rentals and $0 on residential rentals. The following table presents additional details regarding the company’s largest loan concentrations by industry as of June 30, 2024 (in thousands):

Account Type		Outstanding as of June 30, 2024	Percent of Loans as of June 30, 2024
Commercial Rentals	$	146,099	8.90	%
Residential Rentals		112,764	6.87
Hotels/Motels		97,296	5.93
Builders/Contractors		35,755	2.18
Dairy Cattle/Milk Product		45,835	2.79
Fuel/Gas Stations		50,325	3.07
Government Support		25,232	1.54
Mobile Home Park		27,275	1.66
Wineries		23,961	1.46
Camps		24,625	1.50
Resorts		19,892	1.21

XML

Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2024

Fair Value of Assets and Liabilities [Abstract]

Fair Value of Assets and Liabilities

9.          Fair Value of Assets and Liabilities

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Those assets and liabilities are presented in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis”. There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 16 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2024 and December 31, 2023 are as follows:

	Fair Value Measurement Using
	Reporting Date
Description	Total		Level 1		Level 2		Level 3
June 30, 2024	(In thousands)
ASSETS
Available for Sale:
U.S. Treasury securities	$	38,915	$	-	$	38,915	$	-
U.S. Government agencies		24,944		-		24,944		-
States and political subdivisions		126,648		-		126,648		-
Mortgage-backed securities-government
sponsored entities		207,071		-		207,071		-
Interest rate derivatives		1,312		-		1,312		-
LIABILITIES
Interest rate derivatives		1,312		-		1,312		-
Description	Total		Level 1		Level 2		Level 3
December 31, 2023	(In thousands)
ASSETS
Available for Sale:
U.S. Treasury securities	$	53,600	$	-	$	53,600	$	-
U.S. Government agencies		15,996		-		15,996		-
States and political subdivisions		129,479		-		129,479		-
Mortgage-backed securities-government
sponsored entities		207,184		-		207,184		-
Interest rate derivatives		1,225		-		1,225		-
LIABILITIES
Interest rate derivatives		1,225		-		1,225		-

Securities:

The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain Level 3 investments, if applicable.

Interest Rate Swaps:

The fair value of interest rate swaps is based upon the present value of the expected future cash flows using the Secured Overnight Financing Rate (“SOFR”) swap curve, the basis for the underlying interest rate. To price interest rate swaps, cash flows are first projected for each payment date using the fixed rate for the fixed side of the swap and the forward rates for the floating side of the swap. These swap cash flows are then discounted to time zero using SOFR zero-coupon interest rates. The sum of the present value of both legs is the fair market value of the interest rate swap. These valuations have been derived from our third party vendor’s proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions that we believe to be reasonable.

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2024 and December 31, 2023 are as follows:

			Fair Value Measurement Using Reporting Date
(In thousands)
Description	Total		Level 1		Level 2		Level 3
June 30, 2024
Individually analyzed loans held for investment	$	7,478	$	-	$	-	$	7,478
Foreclosed Real Estate Owned		-		-		-		-
December 31, 2023
Individually analyzed loans held for investment	$	7,487	$	-	$	-	$	7,487
Foreclosed Real Estate Owned		97		-		-		97

Individually analyzed loans held for investment:

The Company measures impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the lowest level of input that is significant to the fair value measurements.

As of June 30, 2024, the fair value investment in individually analyzed loans totaled $7,478,000, which included 38 loan relationships with a carrying value of $7,041,000 that did not require a specific allowance for credit loss since either the estimated realizable value of the collateral or the discounted cash flows exceeded the recorded investment in the loan. As of June 30, 2024, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $456,000. As of June 30, 2024, the fair value investment in individually analyzed loans included 24 loan relationships with a carrying value of $600,000 that required a valuation allowance of $164,000 since the estimated realizable value of the collateral did not support the recorded investment in the loan. As of June 30, 2024, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $0 over the life of the loan.

As of December 31, 2023, the fair value investment in individually analyzed loans totaled $7,487,000, which included 33 loan relationships with a carrying value of $7,069,000 that did not require a specific allowance for credit loss since either the estimated realizable value of the collateral or the discounted cash flows exceeded the recorded investment in the loan. As of December 31, 2023, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $5,277,000 over the life of the loans. As of December 31, 2023, the fair value investment in individually analyzed loans included 21 loan relationships with a carrying value of $553,000 that required a valuation allowance of $135,000 since the estimated realizable value of the collateral did not support the recorded investment in the loan. As of December 31, 2023, the Company has recognized charge-offs against the allowance for credit losses on these individually analyzed loans in the amount of $0 over the life of the loan.

Foreclosed real estate owned:

Real estate properties acquired through loan foreclosures, or by deed in lieu of loan foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement.

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2024
Individually analyzed loans held for investment	$	7,478	Appraisal of collateral(1)	Appraisal adjustments(2)	0.0%-10.0% (4.96%)
Foreclosed real estate owned	$	-	Appraisal of collateral(1)	Liquidation Expenses(2)	0.0%-0.0% (0.0%)

	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2023
Individually analyzed loans held for investment	$	7,487	Appraisal of collateral(1)	Appraisal adjustments(2)	0%-10.0% (2.68%)
Foreclosed real estate owned	$	97	Appraisal of collateral(1)	Liquidation Expenses(2)	16.67%-37.20% (28.07%)

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance.

(2)Appraisals may be adjusted by marulnagement for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Assets and Liabilities Not Required to be Measured or Reported at Fair Value

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at June 30, 2024 and December 31, 2023.

Loans receivable (carried at cost):

The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Mortgage servicing rights (generally carried at cost)

The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation.

Deposit liabilities (carried at cost):

The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Other borrowings (carried at cost):

Fair values of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a fair value that is deemed to represent the transfer price if the liability were assumed by a third party.

The estimated fair values of the Bank’s financial instruments not required to be measured or reported at fair value were as follows at June 30, 2024 and December 31, 2023. (In thousands)

	Fair Value Measurements at June 30, 2024
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents (1)	$	69,395	$	69,395	$	69,395	$	-	$	-
Loans receivable, net		1,623,549		1,562,930		-		-		1,562,930
Mortgage servicing rights		174		529		-		-		529
Regulatory stock (1)		6,443		6,443		6,443		-		-
Bank owned life insurance (1)		46,121		46,121		46,121		-		-
Accrued interest receivable (1)		8,329		8,329		8,329		-		-
Financial liabilities:
Deposits		1,811,172		1,805,489		1,068,327		-		737,162
Short-term borrowings (1)		62,335		62,335		62,335		-		-
Other borrowings		148,087		147,906		-		-		147,906
Accrued interest payable (1)		13,329		13,329		13,329		-		-
Off-balance sheet financial instruments:
Commitments to extend credit and ‎outstanding letters of credit		-		-		-		-		-

	Fair Value Measurements at December 31, 2023
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents (1)	$	66,120	$	66,120	$	66,120	$	-	$	-
Loans receivable, net		1,584,650		1,521,667		-		-		1,521,667
Mortgage servicing rights		188		506		-		-		506
Regulatory stock (1)		7,318		7,318		7,318		-		-
Bank owned life insurance (1)		46,439		46,439		46,439		-		-
Accrued interest receivable (1)		8,123		8,123		8,123		-		-
Financial liabilities:
Deposits		1,795,159		1,800,104		1,086,050		-		714,054
Short-term borrowings (1)		74,076		74,076		74,076		-		-
Other borrowings		124,236		124,058		-		-		124,058
Accrued interest payable (1)		10,510		10,510		10,510		-		-
Off-balance sheet financial instruments:
Commitments to extend credit and ‎outstanding letters of credit		-		-		-		-		-

(1)This financial instrument is carried at cost, which approximates the fair value of the instrument.

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Interest Rate Swaps

6 Months Ended

Jun. 30, 2024

Interest Rate Swaps [Abstract]

Interest Rate Swaps

10.          Interest Rate Swaps

The Company enters into interest rate swaps that allow our commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate into a fixed-rate. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are not marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There was no effect on earnings in any periods presented. At June 30, 2024 and December 31, 2023, based upon the swap contract values, the company pledged cash in the amount of $350,000 as collateral for its interest rate swaps with a third-party financial institution. The fair value of the swaps as of June 30, 2024 and December 31, 2023 was $1,312,000 and $1,225,000, respectively.

Summary information regarding these derivatives is presented below

(Amounts in thousands)
	Notional Amount								Fair Value
		June 30, 2024		December 31, 2023		Interest Rate Paid		Interest Rate Received		June 30, 2024		December 31, 2023
Customer interest rate swap
Maturing November, 2030	$	5,957	$	6,145	Term SOFR + Margin			Fixed	$	800	$	746
Maturing December, 2030		3,896		4,032	Term SOFR + Margin			Fixed		512		479
Total	$	9,853	$	10,177					$	1,312	$	1,225
Third party interest rate swap
Maturing November, 2030	$	5,957	$	6,145		Fixed	Term SOFR + Margin		$	800	$	746
Maturing December, 2030		3,896		4,032		Fixed	Term SOFR + Margin			512		479
Total	$	9,853	$	10,177					$	1,312	$	1,225

The following table presents the fair values of derivative instruments in the Consolidated Balance Sheet.

	(Amounts in thousands)
	Assets			Liabilities
	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
June 30, 2024
Interest rate derivatives	Other assets	$	1,312	Other liabilities	$	1,312
December 31, 2023
Interest rate derivatives	Other assets		1,225	Other liabilities		1,225

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New and Recently Adopted Accounting Pronouncements

6 Months Ended

Jun. 30, 2024

New and Recently Adopted Accounting Pronouncements [Abstract]

New and Recently Adopted Accounting Pronouncements

11.           New and Recently Adopted Accounting Pronouncements

In March 2023, the FASB issued ASU No. 2023-02, "Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)". The ASU allows entities to elect the proportional amortization method, on a tax-credit-program-by-tax-credit-program basis, for all equity investments in tax credit programs meeting the eligibility criteria in Accounting Standards Codification (ASC) 323-740-25-1. While the ASU does not significantly alter the existing eligibility criteria, it does provide clarifications to address existing interpretive issues. It also prescribes specific information reporting entities must disclose about tax credit investments each period. This ASU is effective for reporting periods beginning after December 15, 2023, for public business entities, or January 1, 2024 for the Company. The Company does not expect the adoption of this ASU to have a material impact on the Company's financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for public business entities for annual periods beginning after December 15, 2024.  This Update is not expected to have a significant impact on the Company’s financial statements.

 

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Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2024
Basis of Presentation [Abstract]
Principles of Consolidation	The unaudited consolidated financial statements include the accounts of Norwood Financial Corp (the “Company”) and its wholly-owned subsidiary, Wayne Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., and WTRO Properties, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the consolidated financial position and results of operations of the Company. The operating results for the three-month and six- month periods ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other future interim period.

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue Recognition [Abstract]

Noninterest Income

	Three months ended
	June 30,
(dollars in thousands)
Noninterest Income	2024		2023
In-scope of Topic 606:
Service charges on deposit accounts	$	113	$	110
ATM fees		107		106
Overdraft fees		345		342
Safe deposit box rental		20		22
Loan related service fees		189		131
Debit card fees		616		576
Fiduciary activities		225		229
Commissions on mutual funds and annuities		76		36
Gains on sales of other real estate owned		32		—
Other income		157		174
Noninterest Income (in-scope of Topic 606)		1,880		1,726
Out-of-scope of Topic 606:
Net realized gains (losses) on sales of securities		—		(212)
Loan servicing fees		38		30
Gains on sales of loans		36		10
Earnings on and proceeds from bank-owned life insurance		253		229
Noninterest Income (out-of-scope of Topic 606)		327		57
Total Noninterest Income	$	2,207	$	1,783

	Six months ended
	June 30,
(dollars in thousands)
Noninterest Income	2024		2023
In-scope of Topic 606:
Service charges on deposit accounts	$	225	$	214
ATM fees		213		212
Overdraft fees		700		661
Safe deposit box rental		45		48
Loan related service fees		319		284
Debit card fees		1,142		1,135
Fiduciary activities		463		441
Commissions on mutual funds and annuities		144		61
Gains on sales of other real estate owned		32		—
Other income		309		346
Noninterest Income (in-scope of Topic 606)		3,592		3,402
Out-of-scope of Topic 606:
Net realized gains (losses) on sales of securities		—		(209)
Loan servicing fees		59		50
Gains on sales of loans		42		10
Earnings on and proceeds from bank-owned life insurance		520		442
Noninterest Income (out-of-scope of Topic 606)		621		293
Total Noninterest Income	$	4,213	$	3,695

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Weighted Average Shares Outstanding used in the Computations of Basic and Diluted Earnings Per Share

(in thousands)	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Weighted average shares outstanding	8,090	8,101	8,104	8,138
Less: Unvested restricted shares	(45)	(42)	(46)	(43)
Basic EPS weighted average shares outstanding	8,045	8,059	8,058	8,095
Basic EPS weighted average shares outstanding	8,045	8,059	8,058	8,095
Add: Dilutive effect of stock options and restricted shares	3	16	3	17
Diluted EPS weighted average shares outstanding	8,048	8,075	8,061	8,112

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Stock-Based Compensation [Abstract]

Summary of Stock Option Activity

		Weighted
		Average Exercise		Weighted Average		Aggregate
		Price		Remaining		Intrinsic Value
	Options	Per Share		Contractual Term		($000)
Outstanding at January 1, 2024	215,725	$	29.81	6.9	Yrs.	$	759
Granted	—		-	-
Exercised	—		-	-
Forfeited	(1,500)		36.02	5.7
Outstanding at June 30, 2024	214,225	$	30.62	6.4	Yrs.	$	100
Exercisable at June 30, 2024	175,725	$	30.83	5.7	Yrs.	$	100

Summary of Restricted Stock Activity

	2024			2023
		Weighted-Average				Weighted-Average
	Number of	Grant Date		Number of	Grant Date
	Restricted Stock	Fair Value		Restricted Stock	Fair Value
Non-vested, January 1,	45,966	$	29.90	44,460	$	30.12
Granted	1,004		24.90	—		—
Vested	(1,200)		25.71	(3,000)		25.71
Forfeited	—		—	—		—
Non-vested, June 30,	45,770	$	29.35	41,460	$	30.44

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2024

Accumulated Other Comprehensive Income (Loss) [Abstract]

Summary of Changes In Accumulated Other Comprehensive Income (Loss)

	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of December 31, 2023	$	(47,348)
Other comprehensive loss before reclassification		(2,471)
Amount reclassified from accumulated other comprehensive loss		-
Total other comprehensive loss		(2,471)
Balance as of June 30, 2024	$	(49,819)
	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of December 31, 2022	$	(57,353)
Other comprehensive income before reclassification		2,939
Amount reclassified from accumulated other comprehensive income		165
Total other comprehensive income		3,104
Balance as of June 30, 2023	$	(54,249)

	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of March 31, 2024	$	(49,399)
Other comprehensive loss before reclassification		(420)
Amount reclassified from accumulated other comprehensive loss		-
Total other comprehensive loss		(420)
Balance as of June 30, 2024	$	(49,819)
	Unrealized gains (losses) on
	available for sale
	securities (a)
Balance as of March 31, 2023	$	(49,963)
Other comprehensive loss before reclassification		(4,453)
Amount reclassified from accumulated other comprehensive loss		167
Total other comprehensive loss		(4,286)
Balance as of June 30, 2023	$	(54,249)

(a)All amounts are net of tax. Amounts in parentheses indicate debits.

Significant Amounts Reclassified out of each Component of Accumulated Other Comprehensive Income (Loss)

	Amount Reclassified
	From Accumulated
	Other
	Comprehensive
	Income (Loss) (a)				Affected Line Item in
	Three months ended				Consolidated
	June 30,				Statements
Details about other comprehensive income	2024		2023		of Income
Unrealized losses on available for sale securities	$	—	$	(212)	Net realized (losses) gains on sales of securities
Tax effect		—		45	Income tax expense
	$	—	$	(167)
	Six months ended
	June 30,
	2024		2023
Unrealized losses on available for sale securities	$	—	$	(209)	Net realized (losses) gains on sales of securities
Tax effect		—		44	Income tax expense
	$	—	$	(165)

(a) Amounts in parentheses indicate debits to net income

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Off-Balance Sheet Financial Instruments and Guarantees (Tables)

6 Months Ended

Jun. 30, 2024

Off-Balance Sheet Financial Instruments and Guarantees [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks

(in thousands)	June 30,
	2024		2023
Commitments to grant loans	$	94,714	$	96,514
Unfunded commitments under lines of credit		157,184		162,256
Standby letters of credit		7,221		13,809
	$	259,119	$	272,579

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Securities (Tables)

6 Months Ended

Jun. 30, 2024

Securities [Abstract]

Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities

	June 30, 2024
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
	Cost		Gains		Losses			Losses	Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	41,257	$	-	$	(2,342)	$	-	$	38,915
U.S. Government agencies		27,551		21		(2,628)		-		24,944
States and political subdivisions		150,525		-		(23,877)		-		126,648
Mortgage-backed securities-
government sponsored entities		241,933		-		(34,862)		-		207,071
Total debt securities	$	461,266	$	21	$	(63,709)	$	-	$	397,578

	December 31, 2023
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit	Fair
	Cost		Gains		Losses			Losses	Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	55,968	$	14	$	(2,382)	$	-	$	53,600
U.S. Government agencies		18,486		-		(2,490)		-		15,996
States and political subdivisions		151,764		-		(22,285)		-		129,479
Mortgage-backed securities-government
sponsored entities		240,600		-		(33,416)		-		207,184
Total debt securities	$	466,818	$	14	$	(60,573)	$	-	$	406,259

Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continuous Unrealized Loss Position

	June 30, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	34,929	$	(2,342)	$	34,929	$	(2,342)
U.S. Government agencies		5,979		(24)		15,943		(2,604)		21,922		(2,628)
States and political subdivisions		536		(14)		124,897		(23,863)		125,433		(23,877)
Mortgage-backed securities-government sponsored entities		14,375		(128)		192,696		(34,734)		207,071		(34,862)
	$	20,890	$	(166)	$	368,465	$	(63,543)	$	389,355	$	(63,709)

	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	40,833	$	(2,382)	$	40,833	$	(2,382)
U.S. Government agencies		-		-		15,996		(2,490)		15,996		(2,490)
States and political subdivisions		2,261		(12)		125,452		(22,273)		127,713		(22,285)
Mortgage-backed securities-government sponsored entities		-		-		207,184		(33,416)		207,184		(33,416)
	$	2,261	$	(12)	$	389,465	$	(60,561)	$	391,726	$	(60,573)

Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

	Available for Sale
	Amortized Cost		Fair Value
		(In Thousands)
Due in one year or less	$	23,400	$	23,141
Due after one year through five years		39,178		36,130
Due after five years through ten years		76,727		63,253
Due after ten years		80,028		67,983
		219,333		190,507
Mortgage-backed securities-government sponsored entities		241,933		207,071
	$	461,266	$	397,578

Gross Realized Gains and Losses on Sales of Securities Available-for-Sale

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Gross realized gains	$	—	$	—	$	—	$	4
Gross realized losses		—		(212)		—		(213)
Net realized gains (losses)	$	—	$	(212)	$	—	$	(209)
Proceeds from sales of securities	$	—	$	1,363	$	—	$	3,345

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Loans Receivable and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Loans Receivable and Allowance for Credit Losses [Abstract]

Composition of the Loan Portfolio

	June 30, 2024				December 31, 2023
Real Estate Loans:
Residential	$	317,507	19.3	%	$	316,546	19.7	%
Commercial		685,212	41.8			675,156	42.1
Agricultural		60,963	3.7			63,859	4.0
Construction		48,030	2.9			51,453	3.2
Commercial loans		208,658	12.7			200,576	12.5
Other agricultural loans		31,281	1.9			31,966	2.0
Consumer loans to individuals		289,880	17.7			264,321	16.5
Total loans		1,641,531	100.0	%		1,603,877	100.0	%
Deferred fees, net		(176)				(259)
Total loans receivable		1,641,355				1,603,618
Allowance for credit losses		(17,806)				(18,968)
Net loans receivable	$	1,623,549			$	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
June 30, 2024	(In thousands)
Individually evaluated	$	953	$	5,780	$	—	$	—	$	108	$	—	$	800	$	7,641
Collectively evaluated		316,554		679,432		60,963		48,030		208,550		31,281		289,080		1,633,890
Total Loans	$	317,507	$	685,212	$	60,963	$	48,030	$	208,658	$	31,281	$	289,880	$	1,641,531

	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
June 30, 2024
Real Estate loans
Residential	$	315,355	$	1,150	$	49	$	-	$	953	$	2,152	$	317,507
Commercial		678,714		718		-		-		5,780		6,498		685,212
Agricultural		60,944		19		-		-		-		19		60,963
Construction		47,991		-		39		-		-		39		48,030
Commercial loans		208,280		236		34		-		108		378		208,658
Other agricultural loans		31,281		-				-		-		-		31,281
Consumer loans		288,278		616		186		-		800		1,602		289,880
Total	$	1,630,843	$	2,739	$	308	$	-	$	7,641	$	10,688	$	1,641,531

	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		-		-		-		-		(85)		-		(939)		(1,024)
Recoveries		42		104		-		-		-		-		44		190
(Release of) Provision for credit losses		(262)		(2,423)		(17)		(93)		913		36		1,518		(328)
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806
Ending balance individually evaluated	$	-	$	-	$	-	$	-	$	-	$	-	$	164	$	164
Ending balance collectively evaluated	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	3,913	$	17,642

(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2024	$	1,197	$	9,831	$	84	$	831	$	1,987	$	168	$	3,922	$	18,020
Charge Offs		-		-		-		-		(30)		-		(500)		(530)
Recoveries		-		2		-		-		-		-		17		19
(Release of) Provision for credit losses		(66)		(281)		(43)		9		78		(38)		638		297
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806

(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		(6)		(154)		-		-		(147)		-		(308)		(615)
Recoveries		6		9		-		-		6		-		46		67
Provision for credit losses		(24)		(2,422)		(4)		22		133		(41)		902		(1,434)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483
Ending balance individually evaluated ‎for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Ending balance collectively evaluated ‎for impairment	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483

(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2023	$	1,359	$	13,725	$	121	$	703	$	1,158	$	82	$	2,297	$	19,445
Charge Offs		(6)		(42)		-		-		(97)		-		(106)		(251)
Recoveries		—		3		-		-		—		-		20		23
Provision for loan losses		(89)		(2,433)		(66)		116		220		4		514		(1,734)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483

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
June 30, 2024
Real Estate loans
Residential	$	953	$	-	$	953	$	-	$	953
Commercial		5,780		-		5,780		-		5,780
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		108		-		108		-		108
Other agricultural loans		-		-		-		-		-
Consumer loans		636		164		800		-		800
Total	$	7,477	$	164	$	7,641	$	-	$	7,641

		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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	26,939	$	79,565	$	129,495	$	108,654	$	65,325	$	241,147	$	14,150	$	-	$	665,275
Special Mention		-		300		311		2,431		-		2,835		294		-		6,171
Substandard		-		-		2,944		3,217		1,424		6,181		-		-		13,766
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	26,939	$	79,865	$	132,750	$	114,302	$	66,749	$	250,163	$	14,444	$	-	$	685,212
Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real Estate - Agriculture
Risk Rating
Pass	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	31,241	$	444	$	-	$	60,025
Special Mention		-		-		-		-		-		788		150		-		938
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	32,029	$	594	$	-	$	60,963
Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk Rating
Pass	$	30,567	$	38,975	$	33,464	$	21,458	$	12,015	$	21,717	$	42,745	$	-	$	200,941
Special Mention		-		288		423		678		-		117		721		-		2,227
Substandard		-		-		2,845		557		44		49		1,995		-		5,490
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	30,567	$	39,263	$	36,732	$	22,693	$	12,059	$	21,883	$	45,461	$	-	$	208,658
Commercial loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	4	$	51	$	30	$	-	$	85
Other agricultural loans
Risk Rating
Pass	$	1,655	$	2,408	$	4,542	$	2,707	$	2,647	$	5,136	$	10,571	$	-	$	29,666
Special Mention		-		-		-		1		-		142		1,472		-		1,615
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-

Total	$	1,655	$	2,408	$	4,542	$	2,708	$	2,647	$	5,278	$	12,043	$	-	$	31,281
Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total
Risk Rating
Pass	$	61,163	$	123,463	$	179,762	$	136,951	$	87,417	$	299,241	$	67,910	$	-	$	955,907
Special Mention		-		588		734		3,110		-		3,882		2,637		-		10,951
Substandard		-		-		5,789		3,774		1,468		6,230		1,995		-		19,256
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	61,163	$	124,051	$	186,285	$	143,835	$	88,885	$	309,353	$	72,542	$	-	$	986,114

‎

														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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	5,508	$	33,444	$	62,335	$	55,302	$	33,460	$	97,694	$	28,811	$	-	$	316,554
Nonperforming		-		137		-		189		-		608		19		-		953
Total	$	5,508	$	33,581	$	62,335	$	55,491	$	33,460	$	98,302	$	28,830	$	-	$	317,507
Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Payment Performance
Performing	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030
Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans to individuals
Payment Performance
Performing	$	67,755	$	110,808	$	63,631	$	19,965	$	11,249	$	14,785	$	887	$	-	$	289,080
Nonperforming		-		241		358		135		31		35		-		-		800
Total	$	67,755	$	111,049	$	63,989	$	20,100	$	11,280	$	14,820	$	887	$	-	$	289,880

Consumer loans to individuals
Current period gross charge-offs	$	38	$	216	$	479	$	113	$	58	$	35	$	-	$	-	$	939
Total
Payment Performance
Performing	$	84,666	$	168,179	$	135,779	$	75,726	$	44,709	$	112,694	$	31,911	$	-	$	653,664
Nonperforming		-		378		358		324		31		643		19		-		1,753
Total	$	84,666	$	168,557	$	136,137	$	76,050	$	44,740	$	113,337	$	31,930	$	-	$	655,417

														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 June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate loans	$	7,042	1.03	%	Deferred Principal for 2-12 months
Commercial loans		3,416	1.64		Deferred Principal for 2-12 months
Other agricultural loans		363	1.16		Deferred Principal for 4-6 months
Consumer loans		30	0.01		Deferred Principal for 12 months
Total	$	10,851
Payment Reduction
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate loans	$	391	0.06	%	Reduced monthly payment, which resulted in a balloon payment at maturity
Total	$	391
Combination - Term Adjustment and Interest Rate Adjustment
		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect
Residential real estate loans	$	41	0.01	%	Reduced term by 5 years and increased interest rate from 4.75% to 9.25%
Consumer loans		29	0.01		Increase term by 6 months and increased interest rate from 9.19% to 12.99%
Total	$	70

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified (in thousands):

Amortized Cost Basis of Modified Loans That Subsequently Defaulted
		Principal Payment Deferral		Principal Payment Adjustment		Combination - Term Extension and Interest Rate Adjustment
Commercial real estate loans	$	533	$	-	$	-
Commercial loans		32		-		-
Other agricultural loans		190		-		-
	$	755	$	-	$	-

The following table depicts the performance of loans that have been modified in the last 12 months for which a payment default has occured (in thousands):

Payment Status (Amortized Cost Basis)
		30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total Past Due
Commercial real estate loans	$	533	$	-	$	-	$	533
Commercial loans		32		-		-		32
Other agricultural loans		190		-		-		190
	$	755	$	-	$	-	$	755

Summary of Loan Concentrations by Industry

Account Type		Outstanding as of June 30, 2024	Percent of Loans as of June 30, 2024
Commercial Rentals	$	146,099	8.90	%
Residential Rentals		112,764	6.87
Hotels/Motels		97,296	5.93
Builders/Contractors		35,755	2.18
Dairy Cattle/Milk Product		45,835	2.79
Fuel/Gas Stations		50,325	3.07
Government Support		25,232	1.54
Mobile Home Park		27,275	1.66
Wineries		23,961	1.46
Camps		24,625	1.50
Resorts		19,892	1.21

XML

Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value of Assets and Liabilities [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis

	Fair Value Measurement Using
	Reporting Date
Description	Total		Level 1		Level 2		Level 3
June 30, 2024	(In thousands)
ASSETS
Available for Sale:
U.S. Treasury securities	$	38,915	$	-	$	38,915	$	-
U.S. Government agencies		24,944		-		24,944		-
States and political subdivisions		126,648		-		126,648		-
Mortgage-backed securities-government
sponsored entities		207,071		-		207,071		-
Interest rate derivatives		1,312		-		1,312		-
LIABILITIES
Interest rate derivatives		1,312		-		1,312		-
Description	Total		Level 1		Level 2		Level 3
December 31, 2023	(In thousands)
ASSETS
Available for Sale:
U.S. Treasury securities	$	53,600	$	-	$	53,600	$	-
U.S. Government agencies		15,996		-		15,996		-
States and political subdivisions		129,479		-		129,479		-
Mortgage-backed securities-government
sponsored entities		207,184		-		207,184		-
Interest rate derivatives		1,225		-		1,225		-
LIABILITIES
Interest rate derivatives		1,225		-		1,225		-

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

			Fair Value Measurement Using Reporting Date
(In thousands)
Description	Total		Level 1		Level 2		Level 3
June 30, 2024
Individually analyzed loans held for investment	$	7,478	$	-	$	-	$	7,478
Foreclosed Real Estate Owned		-		-		-		-
December 31, 2023
Individually analyzed loans held for investment	$	7,487	$	-	$	-	$	7,487
Foreclosed Real Estate Owned		97		-		-		97

Additional Qualitative Information about Level 3 Assets

	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2024
Individually analyzed loans held for investment	$	7,478	Appraisal of collateral(1)	Appraisal adjustments(2)	0.0%-10.0% (4.96%)
Foreclosed real estate owned	$	-	Appraisal of collateral(1)	Liquidation Expenses(2)	0.0%-0.0% (0.0%)

	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2023
Individually analyzed loans held for investment	$	7,487	Appraisal of collateral(1)	Appraisal adjustments(2)	0%-10.0% (2.68%)
Foreclosed real estate owned	$	97	Appraisal of collateral(1)	Liquidation Expenses(2)	16.67%-37.20% (28.07%)

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance.

(2)Appraisals may be adjusted by marulnagement for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Fair Value, by Balance Sheet Grouping

	Fair Value Measurements at June 30, 2024
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents (1)	$	69,395	$	69,395	$	69,395	$	-	$	-
Loans receivable, net		1,623,549		1,562,930		-		-		1,562,930
Mortgage servicing rights		174		529		-		-		529
Regulatory stock (1)		6,443		6,443		6,443		-		-
Bank owned life insurance (1)		46,121		46,121		46,121		-		-
Accrued interest receivable (1)		8,329		8,329		8,329		-		-
Financial liabilities:
Deposits		1,811,172		1,805,489		1,068,327		-		737,162
Short-term borrowings (1)		62,335		62,335		62,335		-		-
Other borrowings		148,087		147,906		-		-		147,906
Accrued interest payable (1)		13,329		13,329		13,329		-		-
Off-balance sheet financial instruments:
Commitments to extend credit and ‎outstanding letters of credit		-		-		-		-		-

	Fair Value Measurements at December 31, 2023
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents (1)	$	66,120	$	66,120	$	66,120	$	-	$	-
Loans receivable, net		1,584,650		1,521,667		-		-		1,521,667
Mortgage servicing rights		188		506		-		-		506
Regulatory stock (1)		7,318		7,318		7,318		-		-
Bank owned life insurance (1)		46,439		46,439		46,439		-		-
Accrued interest receivable (1)		8,123		8,123		8,123		-		-
Financial liabilities:
Deposits		1,795,159		1,800,104		1,086,050		-		714,054
Short-term borrowings (1)		74,076		74,076		74,076		-		-
Other borrowings		124,236		124,058		-		-		124,058
Accrued interest payable (1)		10,510		10,510		10,510		-		-
Off-balance sheet financial instruments:
Commitments to extend credit and ‎outstanding letters of credit		-		-		-		-		-

(1)This financial instrument is carried at cost, which approximates the fair value of the instrument.

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Interest Rate Swaps (Tables)

6 Months Ended

Jun. 30, 2024

Interest Rate Swaps [Abstract]

Summary of Derivatives

(Amounts in thousands)
	Notional Amount								Fair Value
		June 30, 2024		December 31, 2023		Interest Rate Paid		Interest Rate Received		June 30, 2024		December 31, 2023
Customer interest rate swap
Maturing November, 2030	$	5,957	$	6,145	Term SOFR + Margin			Fixed	$	800	$	746
Maturing December, 2030		3,896		4,032	Term SOFR + Margin			Fixed		512		479
Total	$	9,853	$	10,177					$	1,312	$	1,225
Third party interest rate swap
Maturing November, 2030	$	5,957	$	6,145		Fixed	Term SOFR + Margin		$	800	$	746
Maturing December, 2030		3,896		4,032		Fixed	Term SOFR + Margin			512		479
Total	$	9,853	$	10,177					$	1,312	$	1,225

Fair Value of Derivative Instruments

	(Amounts in thousands)
	Assets			Liabilities
	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
June 30, 2024
Interest rate derivatives	Other assets	$	1,312	Other liabilities	$	1,312
December 31, 2023
Interest rate derivatives	Other assets		1,225	Other liabilities		1,225

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Revenue Recognition (Noninterest Income) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Noninterest Income (in scope of Topic 606)	$ 1,880,000	$ 1,726,000	$ 3,592,000	$ 3,402,000
Net realized gains on sales of securities		(212,000)		(209,000)
Loan servicing fees	38,000	30,000	59,000	50,000
Gains on sales of loans	36,000	10,000	42,000	10,000
Earnings on and proceeds from bank-owned life insurance	253,000	229,000	520,000	442,000
Noninterest Income (out-of-scope of Topic 606)	327,000	57,000	621,000	293,000
Total other income	2,207,000	1,783,000	4,213,000	3,695,000
Service Charges On Deposit Accounts [Member]
Noninterest Income (in scope of Topic 606)	113,000	110,000	225,000	214,000
ATM Fees [Member]
Noninterest Income (in scope of Topic 606)	107,000	106,000	213,000	212,000
Overdraft Fees [Member]
Noninterest Income (in scope of Topic 606)	345,000	342,000	700,000	661,000
Safe Deposit Box Rental [Member]
Noninterest Income (in scope of Topic 606)	20,000	22,000	45,000	48,000
Loan Related Service Fees [Member]
Noninterest Income (in scope of Topic 606)	189,000	131,000	319,000	284,000
Debit Card Fees[Member]
Noninterest Income (in scope of Topic 606)	616,000	576,000	1,142,000	1,135,000
Fiduciary Activities [Member]
Noninterest Income (in scope of Topic 606)	225,000	229,000	463,000	441,000
Commissions On Mutual Funds And Annuities [Member]
Noninterest Income (in scope of Topic 606)	76,000	36,000	144,000	61,000
Gains On Sales Of Other Real Estate Owned [Member]
Noninterest Income (in scope of Topic 606)	32,000		32,000
Other Income [Member]
Noninterest Income (in scope of Topic 606)	$ 157,000	$ 174,000	$ 309,000	$ 346,000

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Earnings Per Share (Narrative) (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	191,850	110,350	191,850	110,350
Share price	$ 25.38	$ 29.53	$ 25.38	$ 29.53	$ 32.91

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Earnings Per Share (Schedule of Weighted Average Shares Outstanding used in the Computations of Basic and Diluted Earnings Per Share) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted average shares outstanding	8,090,000	8,101,000	8,104,000	8,138,000
Less: Unvested restricted shares	(45,000)	(42,000)	(46,000)	(43,000)
Basic EPS weighted average shares outstanding	8,045,000	8,059,000	8,058,000	8,095,000
Basic EPS weighted average shares outstanding	8,045,000	8,059,000	8,058,000	8,095,000
Add: Dilutive effect of stock options and restricted shares	3,000	16,000	3,000	17,000
Diluted EPS weighted average shares outstanding	8,048,000	8,075,000	8,061,000	8,112,000

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Stock-Based Compensation (Narrative) (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Future compensation expense of non-vested restricted stock outstanding	$ 1,174,000
Non-vested restricted stock recognition period	4 years 6 months
Non-vested stock outstanding	45,770	41,460	45,966	44,460
Compensation expense related to stock options	$ 175,000	$ 191,000
Share price	$ 25.38	$ 29.53	$ 32.91
Remaining Life, Years	6 years 4 months 24 days		6 years 10 months 24 days
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Granted	0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 207,000	$ 224,000
Norwood Financial Corp 2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested options granted	$ 171,000

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Stock Based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Stock-Based Compensation [Abstract]
Options, beginning of year	215,725
Options, Forfeited	(1,500)
Options, end of year	214,225	215,725
Options, Exercisable, end of period	175,725
Weighted Average Exercise Price Per Share, Outstanding, beginning of period	$ 29.81
Weighted Average Exercise Price Per Share, Forfeited	36.02
Weighted Average Exercise Price Per Share, Outstanding, end of period	30.62	$ 29.81
Weighted Average Exercise Price Per Share, Exercisable, end of period	$ 30.83
Weighted Average Remaining Contractual Term, Outstanding	6 years 4 months 24 days	6 years 10 months 24 days
Weighted Average Remaining Contractual Term, Forfeited During Period	5 years 8 months 12 days
Weighted Average Remaining Contractual Term, Exercisable at End of Period	5 years 8 months 12 days
Aggregate Intrinsic Value, Outstanding, beginning of period	$ 759
Aggregate Intrinsic Value, Outstanding, end of period	100	$ 759
Aggregate Intrinsic Value, Exercisable at end of period	$ 100

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Stock Based Compensation (Summary of Restricted Stock Activity) (Details) - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Stock-Based Compensation [Abstract]
Restricted stock Non-vested, beginning balance	45,966	44,460
Restricted stock, granted	1,004
Restricted stock, vested	(1,200)	(3,000)
Restricted stock, forfeited
Restricted stock Non-vested, ending balance	45,770	41,460
Restricted stock Non-vested, weighted-average grant date fair value, beginning balance	$ 29.90	$ 30.12
Restricted stock, granted, weighted-average grant date fair value	24.90
Restricted stock, vested, weighted-average grant date fair value	25.71	25.71
Restricted stock, forfeited, weighted-average grant date fair value
Restricted stock Non-vested, weighted-average grant date fair value, ending balance	$ 29.35	$ 30.44

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Accumulated Other Comprehensive Income (Loss) (Summary of Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ (47,348,000)
Other comprehensive (loss) income	$ (420,000)	$ (4,286,000)	(2,471,000)	$ 3,104,000
Ending balance	(49,819,000)		(49,819,000)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive (loss) income	(420,000)	(4,286,000)	(2,471,000)	3,104,000
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gains (Losses) On Available-For-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(49,399,000)	(49,963,000)	(47,348,000)	(57,353,000)
Other comprehensive income (loss) before reclassification	(420,000)	(4,453,000)	(2,471,000)	2,939,000
Amount reclassified from accumulated other comprehensive (income) loss		167,000		165,000
Other comprehensive (loss) income	(420,000)	(4,286,000)	(2,471,000)	3,104,000
Ending balance	$ (49,819,000)	$ (54,249,000)	$ (49,819,000)	$ (54,249,000)

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Accumulated Other Comprehensive Income (Loss) (Significant Amounts Reclassified out of each Component of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized losses on available for sale securities		$ (212,000)		$ (209,000)
Income tax expense	$ 1,128,000	1,734,000	$ 2,303,000	3,221,000
Net income	$ 4,213,000	6,503,000	$ 8,646,000	12,285,000
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gains (Losses) On Available-For-Sale Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized losses on available for sale securities		(212,000)		(209,000)
Income tax expense		45,000		44,000
Net income		$ (167,000)		$ (165,000)

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Off-Balance Sheet Financial Instruments and Guarantees (Schedule of Fair Value, Off-balance Sheet Risks) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Loss Contingencies [Line Items]
Financial instrument commitments	$ 259,119	$ 272,579
Commitments to Grant Loans [Member]
Loss Contingencies [Line Items]
Financial instrument commitments	94,714	96,514
Unfunded Commitments Under Lines of Credit [Member]
Loss Contingencies [Line Items]
Financial instrument commitments	157,184	162,256
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Financial instrument commitments	$ 7,221	$ 13,809

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Securities (Narrative) (Details)	Jun. 30, 2024 USD ($) security	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)
Securities [Abstract]
Debt securities in unrealized loss position in the less than twelve months category | security	9
Debt securities in unrealized loss position in the twelve months or more category | security	331
ACL on debt securities available for sale | $	$ 0	$ 0	$ 0	$ 0
Pledged Financial Instruments, Not Separately Reported, Securities | $	$ 345,310,000		$ 344,204,000

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Securities (Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost, Total	$ 461,266,000
Available for Sale, Fair Value	397,578,000	$ 406,259,000
Debt Securities [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost, Total	461,266,000	466,818,000
Available for Sale, Gross Unrealized Gains	21,000	14,000
Available for Sale, Gross Unrealized Losses	(63,709,000)	(60,573,000)
Available for Sale, Fair Value	397,578,000	406,259,000
U.S. Treasury Securities [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost, Total	41,257,000	55,968,000
Available for Sale, Gross Unrealized Gains		14,000
Available for Sale, Gross Unrealized Losses	(2,342,000)	(2,382,000)
Available for Sale, Fair Value	38,915,000	53,600,000
U.S. Government Agencies [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost, Total	27,551,000	18,486,000
Available for Sale, Gross Unrealized Gains	21,000
Available for Sale, Gross Unrealized Losses	(2,628,000)	(2,490,000)
Available for Sale, Fair Value	24,944,000	15,996,000
States And Political Subdivisions [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost, Total	150,525,000	151,764,000
Available for Sale, Gross Unrealized Losses	(23,877,000)	(22,285,000)
Available for Sale, Fair Value	126,648,000	129,479,000
Mortgage-backed Securities-Government Sponsored Entities [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost, Total	241,933,000	240,600,000
Available for Sale, Gross Unrealized Losses	(34,862,000)	(33,416,000)
Available for Sale, Fair Value	$ 207,071,000	$ 207,184,000

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Securities (Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	$ 20,890	$ 2,261
Less than 12 Months, Unrealized Losses	(166)	(12)
12 Months or More, Fair Value	368,465	389,465
12 Months or More, Unrealized Losses	(63,543)	(60,561)
Total, Fair Value	389,355	391,726
Total, Unrealized Losses	(63,709)	(60,573)
U.S. Treasury Securities [Member]
Schedule of Investments [Line Items]
12 Months or More, Fair Value	34,929	40,833
12 Months or More, Unrealized Losses	(2,342)	(2,382)
Total, Fair Value	34,929	40,833
Total, Unrealized Losses	(2,342)	(2,382)
U.S. Government Agencies [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	5,979
Less than 12 Months, Unrealized Losses	(24)
12 Months or More, Fair Value	15,943	15,996
12 Months or More, Unrealized Losses	(2,604)	(2,490)
Total, Fair Value	21,922	15,996
Total, Unrealized Losses	(2,628)	(2,490)
States And Political Subdivisions [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	536	2,261
Less than 12 Months, Unrealized Losses	(14)	(12)
12 Months or More, Fair Value	124,897	125,452
12 Months or More, Unrealized Losses	(23,863)	(22,273)
Total, Fair Value	125,433	127,713
Total, Unrealized Losses	(23,877)	(22,285)
Mortgage-backed Securities-Government Sponsored Entities [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	14,375
Less than 12 Months, Unrealized Losses	(128)
12 Months or More, Fair Value	192,696	207,184
12 Months or More, Unrealized Losses	(34,734)	(33,416)
Total, Fair Value	207,071	207,184
Total, Unrealized Losses	$ (34,862)	$ (33,416)

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Securities (Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Securities [Abstract]
Available for Sale, Amortized Cost, Due in one year or less	$ 23,400,000
Available for Sale, Amortized Cost, Due after one year through five years	39,178,000
Available for Sale, Amortized Cost, Due after five years through ten years	76,727,000
Available for Sale, Amortized Cost, Due after ten years	80,028,000
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total	219,333,000
Available for Sale, Amortized Cost, Mortgage-backed securities-government sponsored entities	241,933,000
Available for Sale, Amortized Cost, Total	461,266,000
Available for Sale, Fair Value, Due in one year or less	23,141,000
Available for Sale, Fair Value, Due after one year through five years	36,130,000
Available for Sale, Fair Value, Due after five years through ten years	63,253,000
Available for Sale, Fair Value, Due after ten years	67,983,000
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Total	190,507,000
Available for Sale, Fair Value, Mortgage-backed securities-government sponsored entities	207,071,000
Available for Sale, Fair Value, Total	$ 397,578,000	$ 406,259,000

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Securities (Gross Realized Gains and Losses on Sales of Securities Available-for-Sale) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Securities [Abstract]
Gross realized gains		$ 4,000
Gross realized losses	$ (212,000)	(213,000)
Net realized gains (losses)	(212,000)	(209,000)
Proceeds from sales of securities	$ 1,363,000	$ 3,345,000

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Loans Receivable and Allowance for Credit Losses (Narrative) (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Modifications, Post-Modification Recorded Investment					$ 755,000
Real Estate Acquired Through Foreclosure	$ 0		$ 0		97,000
Financing Receivable, before Allowance for Credit Loss	1,641,531,000		1,641,531,000		1,603,877,000
Charge offs	530,000	$ 251,000	1,024,000	$ 615,000
Allowance for loan losses	17,806,000	17,483,000	17,806,000	17,483,000	18,968,000	$ 18,020,000	$ 19,445,000	$ 16,999,000
(Release of) Provision for credit losses	297,000	(1,734,000)	(328,000)	(1,434,000)
Residential Rentals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Charge offs			0
Commercial Rentals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Charge offs			$ 0
Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number Of Properties Under Foreclosure Proceedings | property			8
Mortgage Loans in Process of Foreclosure, Amount	364,000		$ 364,000
Financing Receivable, before Allowance for Credit Loss	317,507,000		317,507,000		316,546,000
Charge offs		6,000		6,000
Allowance for loan losses	1,131,000	1,264,000	1,131,000	1,264,000	1,351,000	1,197,000	1,359,000	2,833,000
(Release of) Provision for credit losses	(66,000)	(89,000)	(262,000)	(24,000)
Residential Real Estate Loans [Member] | Residential Rentals [Member] | Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, before Allowance for Credit Loss	112,764,000		$ 112,764,000
Concentration Risk, Percentage			6.87%
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Modifications, Post-Modification Recorded Investment					533,000
Financing Receivable, before Allowance for Credit Loss	685,212,000		$ 685,212,000		675,156,000
Charge offs		42,000		154,000
Allowance for loan losses	9,552,000	11,253,000	9,552,000	11,253,000	$ 11,871,000	$ 9,831,000	$ 13,725,000	8,293,000
(Release of) Provision for credit losses	(281,000)	$ (2,433,000)	(2,423,000)	$ (2,422,000)
Commercial Real Estate Loans [Member] | Commercial Rentals [Member] | Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 146,099,000		$ 146,099,000
Concentration Risk, Percentage			8.90%
Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Annual Loan Review threshold, amount			$ 1,500,000
Adoption Impact [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses								2,466,000
Adoption Impact [Member] | Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses								(1,545,000)
Adoption Impact [Member] | Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses								$ 5,527,000

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Loans Receivable and Allowance for Credit Losses (Composition of the Loan Portfolio) (Details) - USD ($)	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 1,641,531,000		$ 1,603,877,000
Deferred fees, net	(176,000)		(259,000)
Total loans receivable	1,641,355,000		1,603,618,000
Allowance for credit losses	(17,806,000)	$ (18,020,000)	(18,968,000)	$ (17,483,000)	$ (19,445,000)	$ (16,999,000)
Net loans receivable	$ 1,623,549,000		$ 1,584,650,000
Percent of Loans	100.00%		100.00%
Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 317,507,000		$ 316,546,000
Allowance for credit losses	$ (1,131,000)	(1,197,000)	$ (1,351,000)	(1,264,000)	(1,359,000)	(2,833,000)
Percent of Loans	19.30%		19.70%
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 685,212,000		$ 675,156,000
Allowance for credit losses	$ (9,552,000)	(9,831,000)	$ (11,871,000)	(11,253,000)	(13,725,000)	(8,293,000)
Percent of Loans	41.80%		42.10%
Agricultural Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 60,963,000		$ 63,859,000
Percent of Loans	3.70%		4.00%
Construction Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 48,030,000		$ 51,453,000
Allowance for credit losses	$ (840,000)	(831,000)	$ (933,000)	(819,000)	(703,000)	(409,000)
Percent of Loans	2.90%		3.20%
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 208,658,000		$ 200,576,000
Allowance for credit losses	$ (2,035,000)	(1,987,000)	$ (1,207,000)	(1,281,000)	(1,158,000)	(2,445,000)
Percent of Loans	12.70%		12.50%
Other Agricultural Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 31,281,000		$ 31,966,000
Percent of Loans	1.90%		2.00%
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 289,880,000		$ 264,321,000
Allowance for credit losses	$ (4,077,000)	$ (3,922,000)	$ (3,454,000)	$ (2,725,000)	$ (2,297,000)	$ (2,636,000)
Percent of Loans	17.70%		16.50%

XML

Loans Receivable and Allowance for Credit Losses (Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 7,641,000	$ 7,622,000
Collectively evaluated for impairment	1,633,890,000	1,596,255,000
Total	1,641,531,000	1,603,877,000
Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	953,000	432,000
Collectively evaluated for impairment	316,554,000	316,114,000
Total	317,507,000	316,546,000
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	5,780,000	2,211,000
Collectively evaluated for impairment	679,432,000	672,945,000
Total	685,212,000	675,156,000
Agricultural Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	60,963,000	63,859,000
Total	60,963,000	63,859,000
Construction Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	48,030,000	51,453,000
Total	48,030,000	51,453,000
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	108,000	4,264,000
Collectively evaluated for impairment	208,550,000	196,312,000
Total	208,658,000	200,576,000
Other Agricultural Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	31,281,000	31,966,000
Total	31,281,000	31,966,000
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	800,000	715,000
Collectively evaluated for impairment	289,080,000	263,606,000
Total	$ 289,880,000	$ 264,321,000

XML

Loans Receivable and Allowance for Credit Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans	$ 1,641,531,000	$ 1,603,877,000
Non-Accrual	7,641,000	7,622,000
Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Non-Accrual	7,641,000	7,622,000
Total Past Due and Non-Accrual	10,688,000	19,193,000
Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	1,641,531,000	1,603,877,000
Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	1,630,843,000	1,584,684,000
Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	2,739,000	11,223,000
Financing Receivables, 61 to 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	308,000	348,000
Residential Real Estate Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans	317,507,000	316,546,000
Non-Accrual	953,000	432,000
Residential Real Estate Loans [Member] | Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Non-Accrual	953,000	432,000
Total Past Due and Non-Accrual	2,152,000	1,322,000
Residential Real Estate Loans [Member] | Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	317,507,000	316,546,000
Residential Real Estate Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	315,355,000	315,224,000
Residential Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	1,150,000	877,000
Residential Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	49,000	13,000
Commercial Real Estate Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans	685,212,000	675,156,000
Non-Accrual	5,780,000	2,211,000
Commercial Real Estate Loans [Member] | Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Non-Accrual	5,780,000	2,211,000
Total Past Due and Non-Accrual	6,498,000	8,388,000
Commercial Real Estate Loans [Member] | Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	685,212,000	675,156,000
Commercial Real Estate Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	678,714,000	666,768,000
Commercial Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	718,000	6,177,000
Agricultural Real Estate Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans	60,963,000	63,859,000
Agricultural Real Estate Loans [Member] | Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due and Non-Accrual	19,000	127,000
Agricultural Real Estate Loans [Member] | Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	60,963,000	63,859,000
Agricultural Real Estate Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	60,944,000	63,732,000
Agricultural Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	19,000	127,000
Construction Real Estate Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans	48,030,000	51,453,000
Construction Real Estate Loans [Member] | Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due and Non-Accrual	39,000	18,000
Construction Real Estate Loans [Member] | Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	48,030,000	51,453,000
Construction Real Estate Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	47,991,000	51,435,000
Construction Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	39,000	18,000
Commercial Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans	208,658,000	200,576,000
Non-Accrual	108,000	4,264,000
Commercial Loans [Member] | Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Non-Accrual	108,000	4,264,000
Total Past Due and Non-Accrual	378,000	7,588,000
Commercial Loans [Member] | Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	208,658,000	200,576,000
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	208,280,000	192,988,000
Commercial Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	236,000	3,170,000
Commercial Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	34,000	154,000
Other Agricultural Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans	31,281,000	31,966,000
Other Agricultural Loans [Member] | Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due and Non-Accrual		7,000
Other Agricultural Loans [Member] | Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	31,281,000	31,966,000
Other Agricultural Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	31,281,000	31,959,000
Other Agricultural Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans		7,000
Consumer Loans [Member]
Financing Receivable, Past Due [Line Items]
Loans	289,880,000	264,321,000
Non-Accrual	800,000	715,000
Consumer Loans [Member] | Company Originated [Member]
Financing Receivable, Past Due [Line Items]
Non-Accrual	800,000	715,000
Total Past Due and Non-Accrual	1,602,000	1,743,000
Consumer Loans [Member] | Purchased Credit-Impaired [Member]
Financing Receivable, Past Due [Line Items]
Loans	289,880,000	264,321,000
Consumer Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	288,278,000	262,578,000
Consumer Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	616,000	865,000
Consumer Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Loans	$ 186,000	$ 163,000

XML

Loans Receivable and Allowance for Credit Losses (Allowance for Credit Losses and Recorded Investment in Financing Receivables) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	$ 18,020,000	$ 19,445,000	$ 18,968,000	$ 16,999,000
Charge Offs	(530,000)	(251,000)	(1,024,000)	(615,000)
Recoveries	19,000	23,000	190,000	67,000
(Release of) Provision for credit losses	297,000	(1,734,000)	(328,000)	(1,434,000)
Ending balance,	17,806,000	17,483,000	17,806,000	17,483,000
Ending balance individually evaluated for impairment	164,000		164,000
Ending balance collectively evaluated for impairment	17,642,000	17,483,000	17,642,000	17,483,000
Residential Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	1,197,000	1,359,000	1,351,000	2,833,000
Charge Offs		(6,000)		(6,000)
Recoveries			42,000	6,000
(Release of) Provision for credit losses	(66,000)	(89,000)	(262,000)	(24,000)
Ending balance,	1,131,000	1,264,000	1,131,000	1,264,000
Ending balance collectively evaluated for impairment	1,131,000	1,264,000	1,131,000	1,264,000
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	9,831,000	13,725,000	11,871,000	8,293,000
Charge Offs		(42,000)		(154,000)
Recoveries	2,000	3,000	104,000	9,000
(Release of) Provision for credit losses	(281,000)	(2,433,000)	(2,423,000)	(2,422,000)
Ending balance,	9,552,000	11,253,000	9,552,000	11,253,000
Ending balance collectively evaluated for impairment	9,552,000	11,253,000	9,552,000	11,253,000
Farmland [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	84,000	121,000	58,000	259,000
(Release of) Provision for credit losses	(43,000)	(66,000)	(17,000)	(4,000)
Ending balance,	41,000	55,000	41,000	55,000
Ending balance collectively evaluated for impairment	41,000	55,000	41,000	55,000
Construction Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	831,000	703,000	933,000	409,000
(Release of) Provision for credit losses	9,000	116,000	(93,000)	22,000
Ending balance,	840,000	819,000	840,000	819,000
Ending balance collectively evaluated for impairment	840,000	819,000	840,000	819,000
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	1,987,000	1,158,000	1,207,000	2,445,000
Charge Offs	(30,000)	(97,000)	(85,000)	(147,000)
Recoveries				6,000
(Release of) Provision for credit losses	78,000	220,000	913,000	133,000
Ending balance,	2,035,000	1,281,000	2,035,000	1,281,000
Ending balance collectively evaluated for impairment	2,035,000	1,281,000	2,035,000	1,281,000
Other Agricultural [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	168,000	82,000	94,000	124,000
(Release of) Provision for credit losses	(38,000)	4,000	36,000	(41,000)
Ending balance,	130,000	86,000	130,000	86,000
Ending balance collectively evaluated for impairment	130,000	86,000	130,000	86,000
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,	3,922,000	2,297,000	3,454,000	2,636,000
Charge Offs	(500,000)	(106,000)	(939,000)	(308,000)
Recoveries	17,000	20,000	44,000	46,000
(Release of) Provision for credit losses	638,000	514,000	1,518,000	902,000
Ending balance,	4,077,000	2,725,000	4,077,000	2,725,000
Ending balance individually evaluated for impairment	164,000		164,000
Ending balance collectively evaluated for impairment	$ 3,913,000	$ 2,725,000	$ 3,913,000	2,725,000
Adoption Impact [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				2,466,000
Adoption Impact [Member] | Residential Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				(1,545,000)
Adoption Impact [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				5,527,000
Adoption Impact [Member] | Farmland [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				(200,000)
Adoption Impact [Member] | Construction Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				388,000
Adoption Impact [Member] | Commercial Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				(1,156,000)
Adoption Impact [Member] | Other Agricultural [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				3,000
Adoption Impact [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance,				$ (551,000)

XML

Loans Receivable and Allowance for Credit Losses (Summary of Carrying Value of Loan on Nonaccrual Status) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with no ACL	$ 7,477,000	$ 7,069,000
Nonaccrual with ACL	164,000	553,000
Non-Accrual	7,641,000	7,622,000
Total Nonperforming	7,641,000	7,622,000
Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with no ACL	953,000	432,000
Non-Accrual	953,000	432,000
Total Nonperforming	953,000	432,000
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with no ACL	5,780,000	2,211,000
Non-Accrual	5,780,000	2,211,000
Total Nonperforming	5,780,000	2,211,000
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with no ACL	108,000	4,264,000
Non-Accrual	108,000	4,264,000
Total Nonperforming	108,000	4,264,000
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual with no ACL	636,000	162,000
Nonaccrual with ACL	164,000	553,000
Non-Accrual	800,000	715,000
Total Nonperforming	$ 800,000	$ 715,000

XML

Loans Receivable and Allowance for Credit Losses (Summary of Recorded Investment by Internal Risk Rating Systems) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 1,641,531,000	$ 1,603,877,000
Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	61,163,000	134,225,000
Total Loans, Fiscal Year Before Latest Fiscal Year	124,051,000	194,063,000
Total Loans, Two Years Before Latest Fiscal Year	186,285,000	146,073,000
Total Loans, Three Years Before Latest Fiscal Year	143,835,000	94,987,000
Total Loans, Four Years Before Latest Fiscal Year	88,885,000	93,173,000
Total Loans, Prior	309,353,000	239,295,000
Revolving Loans Amortized Cost Basis	72,542,000	69,741,000
Total	986,114,000	971,557,000
Pass [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	61,163,000	132,372,000
Total Loans, Fiscal Year Before Latest Fiscal Year	123,463,000	191,606,000
Total Loans, Two Years Before Latest Fiscal Year	179,762,000	145,229,000
Total Loans, Three Years Before Latest Fiscal Year	136,951,000	90,219,000
Total Loans, Four Years Before Latest Fiscal Year	87,417,000	92,513,000
Total Loans, Prior	299,241,000	229,990,000
Revolving Loans Amortized Cost Basis	67,910,000	63,589,000
Total	955,907,000	945,518,000
Special Mention [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year		1,853,000
Total Loans, Fiscal Year Before Latest Fiscal Year	588,000	1,823,000
Total Loans, Two Years Before Latest Fiscal Year	734,000	502,000
Total Loans, Three Years Before Latest Fiscal Year	3,110,000	1,650,000
Total Loans, Four Years Before Latest Fiscal Year		505,000
Total Loans, Prior	3,882,000	6,835,000
Revolving Loans Amortized Cost Basis	2,637,000	2,652,000
Total	10,951,000	15,820,000
Substandard [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Fiscal Year Before Latest Fiscal Year		634,000
Total Loans, Two Years Before Latest Fiscal Year	5,789,000	342,000
Total Loans, Three Years Before Latest Fiscal Year	3,774,000	3,118,000
Total Loans, Four Years Before Latest Fiscal Year	1,468,000	155,000
Total Loans, Prior	6,230,000	2,470,000
Revolving Loans Amortized Cost Basis	1,995,000	3,500,000
Total	19,256,000	10,219,000
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	685,212,000	675,156,000
Commercial Real Estate Loans [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	26,939,000	79,796,000
Total Loans, Fiscal Year Before Latest Fiscal Year	79,865,000	132,359,000
Total Loans, Two Years Before Latest Fiscal Year	132,750,000	112,345,000
Total Loans, Three Years Before Latest Fiscal Year	114,302,000	68,724,000
Total Loans, Four Years Before Latest Fiscal Year	66,749,000	72,516,000
Total Loans, Prior	250,163,000	194,505,000
Revolving Loans Amortized Cost Basis	14,444,000	14,911,000
Total	685,212,000	675,156,000
Current period gross charge-offs, Four Years Before Latest Fiscal Year		112,000
Current period gross charge-offs, Prior		42,000
Current period gross charge-offs, Total		154,000
Commercial Real Estate Loans [Member] | Pass [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	26,939,000	78,496,000
Total Loans, Fiscal Year Before Latest Fiscal Year	79,565,000	131,948,000
Total Loans, Two Years Before Latest Fiscal Year	129,495,000	112,102,000
Total Loans, Three Years Before Latest Fiscal Year	108,654,000	65,949,000
Total Loans, Four Years Before Latest Fiscal Year	65,325,000	72,480,000
Total Loans, Prior	241,147,000	186,116,000
Revolving Loans Amortized Cost Basis	14,150,000	13,332,000
Total	665,275,000	660,423,000
Commercial Real Estate Loans [Member] | Special Mention [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year		1,300,000
Total Loans, Fiscal Year Before Latest Fiscal Year	300,000	411,000
Total Loans, Two Years Before Latest Fiscal Year	311,000	243,000
Total Loans, Three Years Before Latest Fiscal Year	2,431,000	1,331,000
Total Loans, Prior	2,835,000	6,157,000
Revolving Loans Amortized Cost Basis	294,000	1,579,000
Total	6,171,000	11,021,000
Commercial Real Estate Loans [Member] | Substandard [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Two Years Before Latest Fiscal Year	2,944,000
Total Loans, Three Years Before Latest Fiscal Year	3,217,000	1,444,000
Total Loans, Four Years Before Latest Fiscal Year	1,424,000	36,000
Total Loans, Prior	6,181,000	2,232,000
Total	13,766,000	3,712,000
Agricultural Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	60,963,000	63,859,000
Agricultural Real Estate Loans [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	2,002,000	2,635,000
Total Loans, Fiscal Year Before Latest Fiscal Year	2,515,000	13,017,000
Total Loans, Two Years Before Latest Fiscal Year	12,261,000	5,433,000
Total Loans, Three Years Before Latest Fiscal Year	4,132,000	8,624,000
Total Loans, Four Years Before Latest Fiscal Year	7,430,000	8,145,000
Total Loans, Prior	32,029,000	25,333,000
Revolving Loans Amortized Cost Basis	594,000	672,000
Total	60,963,000	63,859,000
Agricultural Real Estate Loans [Member] | Pass [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	2,002,000	2,635,000
Total Loans, Fiscal Year Before Latest Fiscal Year	2,515,000	12,509,000
Total Loans, Two Years Before Latest Fiscal Year	12,261,000	5,433,000
Total Loans, Three Years Before Latest Fiscal Year	4,132,000	7,606,000
Total Loans, Four Years Before Latest Fiscal Year	7,430,000	7,746,000
Total Loans, Prior	31,241,000	24,654,000
Revolving Loans Amortized Cost Basis	444,000	522,000
Total	60,025,000	61,105,000
Agricultural Real Estate Loans [Member] | Special Mention [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Four Years Before Latest Fiscal Year		399,000
Total Loans, Prior	788,000	490,000
Revolving Loans Amortized Cost Basis	150,000	150,000
Total	938,000	1,039,000
Agricultural Real Estate Loans [Member] | Substandard [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Fiscal Year Before Latest Fiscal Year		508,000
Total Loans, Three Years Before Latest Fiscal Year		1,018,000
Total Loans, Prior		189,000
Total		1,715,000
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	208,658,000	200,576,000
Commercial Loans [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	30,567,000	49,124,000
Total Loans, Fiscal Year Before Latest Fiscal Year	39,263,000	43,401,000
Total Loans, Two Years Before Latest Fiscal Year	36,732,000	25,042,000
Total Loans, Three Years Before Latest Fiscal Year	22,693,000	14,542,000
Total Loans, Four Years Before Latest Fiscal Year	12,059,000	9,934,000
Total Loans, Prior	21,883,000	15,621,000
Revolving Loans Amortized Cost Basis	45,461,000	42,912,000
Total	208,658,000	200,576,000
Current period gross charge-offs, Fiscal Year Before Latest Fiscal Year		32,000
Current period gross charge-offs, Two Years Before Latest Fiscal Year		24,000
Current period gross charge-offs, Three Years Before Latest Fiscal Year		4,856,000
Current period gross charge-offs, Four Years Before Latest Fiscal Year	4,000
Current period gross charge-offs, Prior	51,000	41,000
Current period gross charge-offs, Revolving loans amortized cost basis	30,000
Current period gross charge-offs, Total	85,000	4,953,000
Commercial Loans [Member] | Pass [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	30,567,000	48,571,000
Total Loans, Fiscal Year Before Latest Fiscal Year	38,975,000	41,863,000
Total Loans, Two Years Before Latest Fiscal Year	33,464,000	24,443,000
Total Loans, Three Years Before Latest Fiscal Year	21,458,000	13,752,000
Total Loans, Four Years Before Latest Fiscal Year	12,015,000	9,914,000
Total Loans, Prior	21,717,000	15,384,000
Revolving Loans Amortized Cost Basis	42,745,000	38,644,000
Total	200,941,000	192,571,000
Commercial Loans [Member] | Special Mention [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year		553,000
Total Loans, Fiscal Year Before Latest Fiscal Year	288,000	1,412,000
Total Loans, Two Years Before Latest Fiscal Year	423,000	257,000
Total Loans, Three Years Before Latest Fiscal Year	678,000	134,000
Total Loans, Four Years Before Latest Fiscal Year		20,000
Total Loans, Prior	117,000	188,000
Revolving Loans Amortized Cost Basis	721,000	768,000
Total	2,227,000	3,332,000
Commercial Loans [Member] | Substandard [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Fiscal Year Before Latest Fiscal Year		126,000
Total Loans, Two Years Before Latest Fiscal Year	2,845,000	342,000
Total Loans, Three Years Before Latest Fiscal Year	557,000	656,000
Total Loans, Four Years Before Latest Fiscal Year	44,000
Total Loans, Prior	49,000	49,000
Revolving Loans Amortized Cost Basis	1,995,000	3,500,000
Total	5,490,000	4,673,000
Other Agricultural Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	31,281,000	31,966,000
Other Agricultural Loans [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	1,655,000	2,670,000
Total Loans, Fiscal Year Before Latest Fiscal Year	2,408,000	5,286,000
Total Loans, Two Years Before Latest Fiscal Year	4,542,000	3,253,000
Total Loans, Three Years Before Latest Fiscal Year	2,708,000	3,097,000
Total Loans, Four Years Before Latest Fiscal Year	2,647,000	2,578,000
Total Loans, Prior	5,278,000	3,836,000
Revolving Loans Amortized Cost Basis	12,043,000	11,246,000
Total	31,281,000	31,966,000
Other Agricultural Loans [Member] | Pass [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	1,655,000	2,670,000
Total Loans, Fiscal Year Before Latest Fiscal Year	2,408,000	5,286,000
Total Loans, Two Years Before Latest Fiscal Year	4,542,000	3,251,000
Total Loans, Three Years Before Latest Fiscal Year	2,707,000	2,912,000
Total Loans, Four Years Before Latest Fiscal Year	2,647,000	2,373,000
Total Loans, Prior	5,136,000	3,836,000
Revolving Loans Amortized Cost Basis	10,571,000	11,091,000
Total	29,666,000	31,419,000
Other Agricultural Loans [Member] | Special Mention [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Two Years Before Latest Fiscal Year		2,000
Total Loans, Three Years Before Latest Fiscal Year	1,000	185,000
Total Loans, Four Years Before Latest Fiscal Year		86,000
Total Loans, Prior	142,000
Revolving Loans Amortized Cost Basis	1,472,000	155,000
Total	$ 1,615,000	428,000
Other Agricultural Loans [Member] | Substandard [Member] | Non-Homogenous Pools [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Four Years Before Latest Fiscal Year		119,000
Total		$ 119,000

XML

Loans Receivable and Allowance for Credit Losses (Summary of Recorded investment in Loan Classes Based on Payment Activity) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 1,641,531,000	$ 1,603,877,000
Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	84,666,000	178,300,000
Total Loans, Fiscal Year Before Latest Fiscal Year	168,557,000	153,827,000
Total Loans, Two Years Before Latest Fiscal Year	136,137,000	89,184,000
Total Loans, Three Years Before Latest Fiscal Year	76,050,000	51,330,000
Total Loans, Four Years Before Latest Fiscal Year	44,740,000	28,551,000
Total Loans, Prior	113,337,000	98,851,000
Revolving Loans Amortized Cost Basis	31,930,000	32,277,000
Total	655,417,000	632,320,000
Performing [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	84,666,000	178,189,000
Total Loans, Fiscal Year Before Latest Fiscal Year	168,179,000	153,423,000
Total Loans, Two Years Before Latest Fiscal Year	135,779,000	89,066,000
Total Loans, Three Years Before Latest Fiscal Year	75,726,000	51,299,000
Total Loans, Four Years Before Latest Fiscal Year	44,709,000	28,452,000
Total Loans, Prior	112,694,000	98,517,000
Revolving Loans Amortized Cost Basis	31,911,000	32,227,000
Total	653,664,000	631,173,000
Nonperforming [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year		111,000
Total Loans, Fiscal Year Before Latest Fiscal Year	378,000	404,000
Total Loans, Two Years Before Latest Fiscal Year	358,000	118,000
Total Loans, Three Years Before Latest Fiscal Year	324,000	31,000
Total Loans, Four Years Before Latest Fiscal Year	31,000	99,000
Total Loans, Prior	643,000	334,000
Revolving Loans Amortized Cost Basis	19,000	50,000
Total	1,753,000	1,147,000
Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	317,507,000	316,546,000
Residential Real Estate Loans [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	5,508,000	27,446,000
Total Loans, Fiscal Year Before Latest Fiscal Year	33,581,000	62,178,000
Total Loans, Two Years Before Latest Fiscal Year	62,335,000	57,691,000
Total Loans, Three Years Before Latest Fiscal Year	55,491,000	35,357,000
Total Loans, Four Years Before Latest Fiscal Year	33,460,000	16,464,000
Total Loans, Prior	98,302,000	88,275,000
Revolving Loans Amortized Cost Basis	28,830,000	29,135,000
Total	317,507,000	316,546,000
Current period gross charge-offs, Prior		34,000
Current period gross charge-offs, Total		34,000
Residential Real Estate Loans [Member] | Performing [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	5,508,000	27,446,000
Total Loans, Fiscal Year Before Latest Fiscal Year	33,444,000	62,178,000
Total Loans, Two Years Before Latest Fiscal Year	62,335,000	57,691,000
Total Loans, Three Years Before Latest Fiscal Year	55,302,000	35,357,000
Total Loans, Four Years Before Latest Fiscal Year	33,460,000	16,406,000
Total Loans, Prior	97,694,000	87,951,000
Revolving Loans Amortized Cost Basis	28,811,000	29,085,000
Total	316,554,000	316,114,000
Residential Real Estate Loans [Member] | Nonperforming [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Fiscal Year Before Latest Fiscal Year	137,000
Total Loans, Three Years Before Latest Fiscal Year	189,000
Total Loans, Four Years Before Latest Fiscal Year		58,000
Total Loans, Prior	608,000	324,000
Revolving Loans Amortized Cost Basis	19,000	50,000
Total	953,000	432,000
Construction Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	48,030,000	51,453,000
Construction Real Estate Loans [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	11,403,000	23,500,000
Total Loans, Fiscal Year Before Latest Fiscal Year	23,927,000	14,906,000
Total Loans, Two Years Before Latest Fiscal Year	9,813,000	6,791,000
Total Loans, Three Years Before Latest Fiscal Year	459,000	1,599,000
Total Loans, Four Years Before Latest Fiscal Year		1,829,000
Total Loans, Prior	215,000	624,000
Revolving Loans Amortized Cost Basis	2,213,000	2,204,000
Total	48,030,000	51,453,000
Construction Real Estate Loans [Member] | Performing [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	11,403,000	23,500,000
Total Loans, Fiscal Year Before Latest Fiscal Year	23,927,000	14,906,000
Total Loans, Two Years Before Latest Fiscal Year	9,813,000	6,791,000
Total Loans, Three Years Before Latest Fiscal Year	459,000	1,599,000
Total Loans, Four Years Before Latest Fiscal Year		1,829,000
Total Loans, Prior	215,000	624,000
Revolving Loans Amortized Cost Basis	2,213,000	2,204,000
Total	48,030,000	51,453,000
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	289,880,000	264,321,000
Consumer Loans [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	67,755,000	127,354,000
Total Loans, Fiscal Year Before Latest Fiscal Year	111,049,000	76,743,000
Total Loans, Two Years Before Latest Fiscal Year	63,989,000	24,702,000
Total Loans, Three Years Before Latest Fiscal Year	20,100,000	14,374,000
Total Loans, Four Years Before Latest Fiscal Year	11,280,000	10,258,000
Total Loans, Prior	14,820,000	9,952,000
Revolving Loans Amortized Cost Basis	887,000	938,000
Total	289,880,000	264,321,000
Current period gross charge-offs, Current Fiscal Year	38,000	45,000
Current period gross charge-offs, Fiscal Year Before Latest Fiscal Year	216,000	710,000
Current period gross charge-offs, Two Years Before Latest Fiscal Year	479,000	200,000
Current period gross charge-offs, Three Years Before Latest Fiscal Year	113,000	35,000
Current period gross charge-offs, Four Years Before Latest Fiscal Year	58,000	45,000
Current period gross charge-offs, Prior	35,000	28,000
Current period gross charge-offs, Revolving loans amortized cost basis		4,000
Current period gross charge-offs, Total	939,000	1,067,000
Consumer Loans [Member] | Performing [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year	67,755,000	127,243,000
Total Loans, Fiscal Year Before Latest Fiscal Year	110,808,000	76,339,000
Total Loans, Two Years Before Latest Fiscal Year	63,631,000	24,584,000
Total Loans, Three Years Before Latest Fiscal Year	19,965,000	14,343,000
Total Loans, Four Years Before Latest Fiscal Year	11,249,000	10,217,000
Total Loans, Prior	14,785,000	9,942,000
Revolving Loans Amortized Cost Basis	887,000	938,000
Total	289,080,000	263,606,000
Consumer Loans [Member] | Nonperforming [Member] | Based on Payment Activity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans, Current Fiscal Year		111,000
Total Loans, Fiscal Year Before Latest Fiscal Year	241,000	404,000
Total Loans, Two Years Before Latest Fiscal Year	358,000	118,000
Total Loans, Three Years Before Latest Fiscal Year	135,000	31,000
Total Loans, Four Years Before Latest Fiscal Year	31,000	41,000
Total Loans, Prior	35,000	10,000
Total	$ 800,000	$ 715,000

XML

Loans Receivable and Allowance for Credit Losses (Loan Modifications Made to Borrowers) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 755,000
Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 10,851,000	755,000
Principal Payment Adjustment [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	391,000
Combination - Term Extension and Interest Rate Adjustment [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	70,000
Commercial Real Estate Loans [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		533,000
Commercial Real Estate Loans [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 7,042,000	533,000
% of Total Class of Financing Receivable	1.03%
Commercial Real Estate Loans [Member] | Principal Payment Adjustment [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 391,000
% of Total Class of Financing Receivable	0.06%
Commercial Real Estate Loans [Member] | Minimum [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Modified weighted average term	2 months
Commercial Real Estate Loans [Member] | Maximum [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Modified weighted average term	12 months
Commercial Loans [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		32,000
Commercial Loans [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 3,416,000	$ 32,000
% of Total Class of Financing Receivable	1.64%
Commercial Loans [Member] | Minimum [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Modified weighted average term	2 months
Commercial Loans [Member] | Maximum [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Modified weighted average term	12 months
Consumer Loans [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 30,000
% of Total Class of Financing Receivable	0.01%
Modified weighted average term	12 months
Consumer Loans [Member] | Combination - Term Extension and Interest Rate Adjustment [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 29,000
% of Total Class of Financing Receivable	0.01%
Consumer Loans [Member] | Combination - Term Extension and Interest Rate Adjustment [Member] | New Loans Granted [Member]
Financing Receivable, Modified [Line Items]
Weighted average term	6 months
Weighted average interest rate	12.99%	9.19%
Residential Real Estate Loans [Member] | Combination - Term Extension and Interest Rate Adjustment [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 41,000
% of Total Class of Financing Receivable	0.01%
Residential Real Estate Loans [Member] | Combination - Term Extension and Interest Rate Adjustment [Member] | New Loans Granted [Member]
Financing Receivable, Modified [Line Items]
Weighted average term	5 years
Weighted average interest rate	4.75%	9.25%
Other Agricultural Loans [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 190,000
Other Agricultural Loans [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 363,000	190,000
% of Total Class of Financing Receivable	1.16%
Other Agricultural Loans [Member] | Minimum [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Modified weighted average term	4 months
Other Agricultural Loans [Member] | Maximum [Member] | Principal Payment Deferral [Member]
Financing Receivable, Modified [Line Items]
Modified weighted average term	6 months
Financing Receivables, 31 to 60 Days Past Due [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		755,000
Financing Receivables, 31 to 60 Days Past Due [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		533,000
Financing Receivables, 31 to 60 Days Past Due [Member] | Commercial Loans [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		32,000
Financing Receivables, 31 to 60 Days Past Due [Member] | Other Agricultural Loans [Member]
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 190,000

XML

Loans Receivable and Allowance for Credit Losses (Loan Concentrations by Industry) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 1,641,531,000	$ 1,603,877,000
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	685,212,000	675,156,000
Commercial Real Estate Loans [Member] | Loans Receivable [Member] | Commercial Rentals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 146,099,000
Percent of Loans Outstanding	8.90%
Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 317,507,000	316,546,000
Residential Real Estate Loans [Member] | Loans Receivable [Member] | Residential Rentals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 112,764,000
Percent of Loans Outstanding	6.87%
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 289,880,000	264,321,000
Consumer Loans [Member] | Loans Receivable [Member] | Hotels/Motels [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 97,296,000
Percent of Loans Outstanding	5.93%
Consumer Loans [Member] | Loans Receivable [Member] | Dairy Cattle/Milk Product [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 45,835,000
Percent of Loans Outstanding	2.79%
Consumer Loans [Member] | Loans Receivable [Member] | Fuel/Gas Stations [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 50,325,000
Percent of Loans Outstanding	3.07%
Consumer Loans [Member] | Loans Receivable [Member] | Government Support [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 25,232,000
Percent of Loans Outstanding	1.54%
Consumer Loans [Member] | Loans Receivable [Member] | Mobile Home Park [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 27,275,000
Percent of Loans Outstanding	1.66%
Consumer Loans [Member] | Loans Receivable [Member] | Wineries [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 23,961,000
Percent of Loans Outstanding	1.46%
Consumer Loans [Member] | Loans Receivable [Member] | Camps [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 24,625,000
Percent of Loans Outstanding	1.50%
Consumer Loans [Member] | Loans Receivable [Member] | Resorts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 19,892,000
Percent of Loans Outstanding	1.21%
Construction Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 48,030,000	$ 51,453,000
Construction Real Estate Loans [Member] | Loans Receivable [Member] | Builders/Contractors [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Loans	$ 35,755,000
Percent of Loans Outstanding	2.18%

XML

Fair Value of Assets and Liabilities (Narrative) (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financing receivable, individually evaluated, without allowance for credit loss	$ 7,041,000	$ 7,069,000
Number of impaired loans requiring a valuation allowance | loan	38	33
Fair Value	$ 7,478,000	$ 7,487,000
Impaired Loans, Cumulative Charge-Offs	456,000	5,277,000
Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financing receivable, individually evaluated, with allowance for credit loss	$ 600,000	$ 553,000
Number of loans with related allowance | loan	24	21
Valuation allowance	$ 164,000	$ 135,000
Impaired Loans, Cumulative Charge-Offs	$ 0	$ 0

XML

Fair Value of Assets and Liabilities (Fair Value, Assets Measured on Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	$ 38,915	$ 53,600
U.S. Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	38,915	53,600
U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	24,944	15,996
U.S. Government Agencies [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	24,944	15,996
States And Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	126,648	129,479
States And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	126,648	129,479
Mortgage-backed Securities-Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	207,071	207,184
Mortgage-backed Securities-Government Sponsored Entities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	207,071	207,184
Interest Rate Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	1,312	1,225
LIABILITIES	1,312	1,225
Interest Rate Derivatives [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
ASSETS	1,312	1,225
LIABILITIES	$ 1,312	$ 1,225

XML

Fair Value of Assets and Liabilities (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 7,478,000	$ 7,487,000
Fair Value, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	7,478,000	7,487,000
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 7,478,000	7,487,000
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		97,000
Fair Value, Nonrecurring [Member] | Foreclosed Real Estate Owned [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		$ 97,000

XML

Fair Value of Assets and Liabilities (Additional Qualitative Information about Level 3 Assets) (Details)	Jun. 30, 2024 USD ($) item	Dec. 31, 2023 USD ($) item
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure | $	$ 7,478,000	$ 7,487,000
Impaired Loans [Member] | Appraisal Of Collateral [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure | $	$ 7,478,000	$ 7,487,000
Impaired Loans [Member] | Minimum [Member] | Appraisal Of Collateral [Member] | Measurement Input, Appraised Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing Asset, Measurement Input	0.0	0
Impaired Loans [Member] | Maximum [Member] | Appraisal Of Collateral [Member] | Measurement Input, Appraised Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing Asset, Measurement Input	10.0	10.0
Impaired Loans [Member] | Weighted Average [Member] | Appraisal Of Collateral [Member] | Measurement Input, Appraised Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing Asset, Measurement Input	4.96	2.68
Foreclosed Real Estate Owned [Member] | Appraisal Of Collateral [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure | $		$ 97,000
Foreclosed Real Estate Owned [Member] | Minimum [Member] | Appraisal Of Collateral [Member] | Measurement Input, Liquidation Expenses [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned, Measurement Input	0.0	16.67
Foreclosed Real Estate Owned [Member] | Maximum [Member] | Appraisal Of Collateral [Member] | Measurement Input, Liquidation Expenses [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned, Measurement Input	0.0	37.20
Foreclosed Real Estate Owned [Member] | Weighted Average [Member] | Appraisal Of Collateral [Member] | Measurement Input, Liquidation Expenses [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned, Measurement Input	0.0	28.07

XML

Fair Value of Assets and Liabilities (Fair Value, by Balance Sheet Grouping) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets: Cash and cash equivalents, Fair Value Disclosure	$ 69,395,000	$ 66,120,000
Financial assets: Loans receivable, net, Fair Value Disclosure	1,562,930,000	1,521,667,000
Financial assets: Mortgage servicing rights, Fair Value Disclosure	529,000	506,000
Financial assets: Regulatory stock, Fair Value Disclosure	6,443,000	7,318,000
Financial assets: Bank owned life insurance, Fair Value Disclosure	46,121,000	46,439,000
Financial assets: Accrued interest receivable, Fair Value Disclosure	8,329,000	8,123,000
Financial liabilities: Deposits, Fair Value Disclosure	1,805,489,000	1,800,104,000
Financial liabilities: Short-term borrowings, Fair Value Disclosure	62,335,000	74,076,000
Financial liabilities: Other borrowings, Fair Value Disclosure	147,906,000	124,058,000
Financial liabilities: Accrued interest payable, Fair Value Disclosure	13,329,000	10,510,000
Financial assets: Cash and cash equivalents	69,395,000	66,120,000	$ 33,089,000	$ 31,866,000
Financial assets: Loans receivable, net	1,623,549,000	1,584,650,000
Financial assets: Mortgage servicing rights	174,000	188,000
Financial assets: Regulatory stock	6,443,000	7,318,000
Financial assets: Bank owned life insurance	46,121,000	46,439,000
Financial assets: Accrued interest receivable	8,329,000	8,123,000
Financial liabilities: Deposits	1,811,172,000	1,795,159,000
Financial liabilities: Short-term borrowings	62,335,000	74,076,000
Financial liabilities: Other borrowings	148,087,000	124,236,000
Financial liabilities: Accrued interest payable	13,329,000	10,510,000
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets: Cash and cash equivalents, Fair Value Disclosure	69,395,000	66,120,000
Financial assets: Regulatory stock, Fair Value Disclosure	6,443,000	7,318,000
Financial assets: Bank owned life insurance, Fair Value Disclosure	46,121,000	46,439,000
Financial assets: Accrued interest receivable, Fair Value Disclosure	8,329,000	8,123,000
Financial liabilities: Deposits, Fair Value Disclosure	1,068,327,000	1,086,050,000
Financial liabilities: Short-term borrowings, Fair Value Disclosure	62,335,000	74,076,000
Financial liabilities: Accrued interest payable, Fair Value Disclosure	13,329,000	10,510,000
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets: Loans receivable, net, Fair Value Disclosure	1,562,930,000	1,521,667,000
Financial assets: Mortgage servicing rights, Fair Value Disclosure	529,000	506,000
Financial liabilities: Deposits, Fair Value Disclosure	737,162,000	714,054,000
Financial liabilities: Other borrowings, Fair Value Disclosure	$ 147,906,000	$ 124,058,000

XML

Interest Rate Swaps (Narrative) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets	Prepaid Expense and Other Assets
Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Pledged cash as collateral	$ 350,000	$ 350,000
Derivative Asset	$ 1,312,000	$ 1,225,000

XML

Interest Rate Swaps (Summary of Derivatives) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Investment, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember	us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember
Customer Interest Rate Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 9,853	$ 10,177
Fair Value	1,312	1,225
Customer Interest Rate Swap [Member] | Maturing November, 2030 [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	5,957	6,145
Fair Value	800	746
Customer Interest Rate Swap [Member] | Maturing December, 2030 [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	3,896	4,032
Fair Value	512	479
Third Party Interest Rate Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	9,853	10,177
Fair Value	1,312	1,225
Third Party Interest Rate Swap [Member] | Maturing November, 2030 [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	5,957	6,145
Fair Value	800	746
Third Party Interest Rate Swap [Member] | Maturing December, 2030 [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	3,896	4,032
Fair Value	$ 512	$ 479

XML

Interest Rate Swaps (Fair Value of Derivative Instruments) (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets	Prepaid Expense and Other Assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Interest Rate Contract [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Assets	$ 1,312,000	$ 1,225,000
Liabilities	$ 1,312,000	$ 1,225,000