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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Outstanding loans Outstanding loans are summarized by class as follows:
Loan Type (Dollars in thousands)September 30, 2024December 31, 2023
Commercial:  
Commercial and industrial$143,876 $105,466 
Agricultural production16,940 33,556 
Total commercial160,816 139,022 
Real estate:  
Construction & other land loans85,135 33,472 
Commercial real estate - owner occupied308,472 215,146 
Commercial real estate - non-owner occupied902,393 539,522 
Farmland138,544 120,674 
Multi-family residential131,013 61,307 
1-4 family - close-ended125,405 96,558 
1-4 family - revolving35,482 27,648 
Total real estate1,726,444 1,094,327 
Consumer:
Manufactured housing320,786 — 
Other installment87,133 55,606 
Total consumer407,919 55,606 
Total gross loans2,295,179 1,288,955 
Net deferred origination costs 1,964 1,842 
Loans, net of deferred origination costs2,297,143 1,290,797 
Allowance for credit losses(24,891)(14,653)
Total loans, net$2,272,252 $1,276,144 
Allowance for credit losses
The following table shows the summary of activities for the allowance for credit losses for the three months ended September 30, 2024 and 2023 by portfolio segment (in thousands):
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
Allowance for credit losses:    
Beginning balance, July 1, 2024$1,477 $16,626 $2,965 $3,872 $24,940 
(Credit) provision for credit losses (1)(256)1,056 (146)(865)(211)
Charge-offs(5)— — (15)(20)
Recoveries51 6 59 66 182 
Ending balance, September 30, 2024$1,267 $17,688 $2,878 $3,058 $24,891 
(1) Represents (credit) provision to credit losses for loans only. The credit to the provision for credit losses on the Consolidated Statements of Income of $(518) includes a $(219) credit for held-to-maturity securities and a $(88) credit for unfunded loan commitments.
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
Allowance for credit losses:    
Beginning balance, July 1, 2023$1,477 $10,684 $2,489 $813 $15,463 
Provision (credit) for credit losses (1)161 195 (71)(20)265 
Charge-offs(236)— — (18)(254)
Recoveries38 — 2 20 60 
Ending balance, September 30, 2023$1,440 $10,879 $2,420 $795 $15,534 
(1) Represents provision (credit) to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $186 includes a $(175) credit for held-to-maturity securities and a $96 provision for unfunded loan commitments.

The following table shows the summary of activities for the allowance for credit losses as of and for the nine months ended September 30, 2024 and 2023 by portfolio segment (in thousands):
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
Allowance for credit losses:    
Beginning balance, January 1, 2024$1,475 $9,792 $2,435 $951 $14,653 
Allowance for loan loss on purchased credit deteriorated loans (PCD)375 371 2 73 821 
(Credit) provision for credit losses (1)(76)7,495 374 2,028 9,821 
Charge-offs(558)— — (90)(648)
Recoveries51 30 67 96 244 
Ending balance, September 30, 2024$1,267 $17,688 $2,878 $3,058 $24,891 
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $9,889 includes a $(194) credit for held-to-maturity securities and a $262 provision for unfunded loan commitments.

CommercialCommercial Real Estate1-4 FamilyConsumerUnallocatedTotal
Allowance for credit losses:     
Beginning balance, January 1, 2023 prior to adoption of ASU 2016-13 (CECL)$1,814 $7,803 $607 $284 $340 $10,848 
Impact of adoption of ASU 2016-13454 1,693 1,614 489 (340)3,910 
(Credit) provision for credit losses (1)(630)1,383 184 30 — 967 
Charge-offs(558)— — (53)— (611)
Recoveries360 — 15 45 — 420 
Ending balance, September 30, 2023$1,440 $10,879 $2,420 $795 $— $15,534 
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $476 includes a $(495) credit for held-to-maturity securities and a $4 provision for unfunded loan commitments.
Composition of nonaccrual loans
The following table presents the composition of nonaccrual loans as of September 30, 2024 (in thousands). There were no loans on nonaccrual as of December 31, 2023
September 30, 2024
With an ACLWithout an ACLTotal Nonaccrual
Commercial real estate - owner occupied$— $128 $128 
Commercial real estate - non-owner occupied— 378 378 
Farmland— 1,525 1,525 
1-4 family real estate618 618 
Manufactured housing— 601 601 
Total$— $3,250 $3,250 
Collateral dependent loans
The following table presents the amortized cost basis of collateral dependent loans by class of loans and by collateral type as of the dates indicated as of September 30, 2024 (in thousands). As of December 31, 2023, there were no collateral dependent loans.
September 30, 2024
Manufactured HomesReal EstateMachinery & EquipmentTotal
Commercial real estate - owner occupied$— $128 $— $128 
Commercial real estate - non-owner occupied— — 378 378 
Farmland— 1,525 — 1,525 
1-4 family real estate— 618 — 618 
Manufactured housing601 — — 601 
Total$601 $2,271 $378 $3,250 
Loans purchased with credit deterioration The following table provides a summary of loans and leases purchased as part of the acquisition with credit deterioration at the time of acquisition of April 1, 2024 (in thousands):
April 1, 2024
Par Value of Loans AcquiredAllowance for Credit Losses at AcquisitionNon-Credit Discount at AcquisitionPurchase Price of Loans at Acquisition
Commercial$7,360 $(375)$(416)$6,569 
Commercial real estate20,622 (359)(1,037)19,226 
Farmland1,617 (12)(56)1,549 
1-4 family real estate 572 (2)(24)546 
Manufacturing housing947 (73)(11)863 
Total$31,118 $(821)$(1,544)$28,753 
Loan portfolio by internal risk rating
The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated. The following table also shows the charge-offs recognized during the nine months ended September 30, 2024 (in thousands):
Term Loans Amortized Cost Basis by Origination Year As of September 30, 2024
20242023202220212020PriorRevolving LoansRevolving Converted to TermTotal
Commercial and industrial
Pass/Watch$24,787 $13,826 $16,698 $15,909 $4,962 $10,017 $45,665 $1,022 $132,886 
Special mention— — — 1,600 — — 6,650 — 8,250 
Substandard— 49 1,569 — 21 1,158 40 — 2,837 
Total$24,787 $13,875 $18,267 $17,509 $4,983 $11,175 $52,355 $1,022 $143,973 
Current period gross write-offs$— $— $5 $— $— $46 $— $— $51 
Agricultural production
Pass/Watch$686 $284 $— $10 $354 $317 $15,348 $— $16,999 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$686 $284 $— $10 $354 $317 $15,348 $— $16,999 
Current period gross write-offs$— $— $507 $— $— $— $— $— $507 
Construction & other land loans
Pass/Watch$8,852 $22,893 $30,986 $16,054 $701 $3,882 $1,462 $— $84,830 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$8,852 $22,893 $30,986 $16,054 $701 $3,882 $1,462 $— $84,830 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied
Pass/Watch$26,748 $23,473 $44,486 $43,627 $31,962 $122,904 $5,977 $— $299,177 
Special mention— 1,772 — — 161 2,976 — — 4,909 
Substandard— — — — 937 3,316 — — 4,253 
Total$26,748 $25,245 $44,486 $43,627 $33,060 $129,196 $5,977 $— $308,339 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - non-owner occupied
Pass/Watch$81,918 $110,152 $178,715 $120,107 $76,488 $267,439 $34,447 $1,250 $870,516 
Special mention— — 593 — — 6,427 — — 7,020 
Substandard— — — 8,012 — 15,889 — — 23,901 
Total$81,918 $110,152 $179,308 $128,119 $76,488 $289,755 $34,447 $1,250 $901,437 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Farmland
Pass/Watch$4,713 $4,964 $21,354 $12,466 $29,120 $46,609 $4,538 $— $123,764 
Special mention— 4,025 3,312 — — — 1,283 — 8,620 
Substandard— — — — 2,029 4,064 — — 6,093 
Total$4,713 $8,989 $24,666 $12,466 $31,149 $50,673 $5,821 $— $138,477 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Multi-family residential
Pass/Watch$8,320 $2,974 $31,082 $45,904 $13,632 $26,745 $2,325 $— $130,982 
Special mention— — — — — — — — — 
Substandard— — — — — — — — 
Total$8,320 $2,974 $31,082 $45,904 $13,632 $26,745 $2,325 $— $130,982 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
1-4 family - close-ended
Pass/Watch$2,386 $5,480 $65,674 $13,815 $7,472 $25,539 $3,869 $— $124,235 
Special mention— — — — — — — — — 
Substandard78 — 618 — — 553 — — 1,249 
Total$2,464 $5,480 $66,292 $13,815 $7,472 $26,092 $3,869 $— $125,484 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
1-4 family - revolving
Pass/Watch$— $— $— $— $— $— $29,511 $5,882 $35,393 
Special mention— — — — — — — — — 
Substandard— — — — — — — 313 313 
Total$— $— $— $— $— $— $29,511 $6,195 $35,706 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Manufactured Housing
Pass/Watch$38,366 $43,977 $48,451 $41,634 $38,906 $108,571 $— $— $319,905 
Special mention— — — — — — — — — 
Substandard— — — — 221 658 — — 879 
Total$38,366 $43,977 $48,451 $41,634 $39,127 $109,229 $— $— $320,784 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Consumer
Pass/Watch$43,783 $25,725 $6,587 $5,448 $1,628 $6,114 $735 $— $90,020 
Special mention— — — — — — — — — 
Substandard— 7 63 26 16 — — — 112 
Total$43,783 $25,732 $6,650 $5,474 $1,644 $6,114 $735 $— $90,132 
Current period gross write-offs$16 $10 $50 $— $— $13 $1 $— $90 
Total loans outstanding (risk rating):
Pass/Watch$240,559 $253,748 $444,033 $314,974 $205,225 $618,137 $143,877 $8,154 $2,228,707 
Special mention— 5,797 3,905 1,600 161 9,403 7,933 — 28,799 
Substandard78 56 2,250 8,038 3,224 25,638 40 313 39,637 
Grand Total$240,637 $259,601 $450,188 $324,612 $208,610 $653,178 $151,850 $8,467 $2,297,143 
Current period total gross write-offs$16 $10 $562 $— $— $59 $1 $— $648 

The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated. The following table also shows the charge-offs recognized during the twelve months ended December 31, 2023 (in thousands):

Term Loans Amortized Cost Basis by Origination Year As of December 31, 2023
20232022202120202019PriorRevolving LoansRevolving Converted to TermTotal
Commercial and industrial
Pass/Watch$19,886 $17,129 $21,050 $4,643 $1,561 $6,980 $29,391 $215 $100,855 
Special mention— 277 139 183 107 272 3,750 — 4,728 
Substandard— — — 156 — 66 — — 222 
Total$19,886 $17,406 $21,189 $4,982 $1,668 $7,318 $33,141 $215 $105,805 
Current period gross write-offs$241 $— $323 $— $— $— $— $— $564 
Agricultural production
Pass/Watch$153 $830 $14 $— $251 $112 $30,241 $999 $32,600 
Special mention— — — — — — — — — 
Substandard— 676 — — — — 300 — 976 
Total$153 $1,506 $14 $— $251 $112 $30,541 $999 $33,576 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Construction & other land loans
Pass/Watch$6,953 $15,593 $1,305 $701 $1,538 $3,039 $4,167 $— $33,296 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$6,953 $15,593 $1,305 $701 $1,538 $3,039 $4,167 $— $33,296 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied
Pass/Watch$20,648 $25,132 $20,783 $39,356 $21,831 $80,384 $3,207 $— $211,341 
Special mention— — — — — 3,026 272 — 3,298 
Substandard— — — — — 497 — — 497 
Total$20,648 $25,132 $20,783 $39,356 $21,831 $83,907 $3,479 $— $215,136 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - non-owner occupied
Pass/Watch$81,153 $115,031 $77,375 $38,307 $12,181 $175,419 $19,218 $3,216 $521,900 
Special mention— 600 — — — 374 — — 974 
Substandard— — — — 13,625 2,344 — — 15,969 
Total$81,153 $115,631 $77,375 $38,307 $25,806 $178,137 $19,218 $3,216 $538,843 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Farmland
Pass/Watch$8,382 $24,063 $10,873 $29,770 $11,155 $23,324 $8,695 $1,955 $118,217 
Special mention— — — — — — — — — 
Substandard— — — 2,213 — 200 — — 2,413 
Total$8,382 $24,063 $10,873 $31,983 $11,155 $23,524 $8,695 $1,955 $120,630 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Multi-family residential
Pass/Watch$2,988 $1,847 $38,644 $2,364 $4,538 $10,417 $532 $— $61,330 
Special mention— — — — — — — — — 
Substandard— — — — — — — — 
Total$2,988 $1,847 $38,644 $2,364 $4,538 $10,417 $532 $— $61,330 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
1-4 family - close-ended
Pass/Watch$1,689 $64,056 $7,898 $2,259 $1,703 $18,237 $— $809 $96,651 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$1,689 $64,056 $7,898 $2,259 $1,703 $18,237 $— $809 $96,651 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
1-4 family - revolving
Pass/Watch$— $— $— $— $— $— $21,662 $6,213 $27,875 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$— $— $— $— $— $— $21,662 $6,213 $27,875 
Current period gross write-offs$75 $— $— $— $— $— $— $— $75 
Consumer
Pass/Watch$34,866 $8,745 $6,503 $2,265 $2,007 $2,398 $643 $4 $57,431 
Special mention— — — — — — — — — 
Substandard182 — 42 — — — — — 224 
Total$35,048 $8,745 $6,545 $2,265 $2,007 $2,398 $643 $4 $57,655 
Current period gross write-offs$23 $— $— $— $27 $— $— $— $50 
Total loans outstanding (risk rating):
Pass/Watch$176,718 $272,426 $184,445 $119,665 $56,765 $320,310 $117,756 $13,411 $1,261,496 
Special mention— 877 139 183 107 3,672 4,022 — 9,000 
Substandard182 676 42 2,369 13,625 3,107 300 — 20,301 
Grand Total$176,900 $273,979 $184,626 $122,217 $70,497 $327,089 $122,078 $13,411 $1,290,797 
Current period total gross write-offs$339 $— $323 $— $27 $— $— $— $689 
Loan portfolio by time past due
The following table shows an aging analysis of the loan portfolio by class at September 30, 2024 (in thousands):
 30-59 Days
Past Due		60-89
Days Past
Due
Greater
Than
 89 Days
Past Due
Total Past
Due		CurrentTotal
Loans		Loans Past Due > 89 Days, Still AccruingNon-accrual
Commercial:        
Commercial and industrial$150 $49 $— $199 $143,677 $143,876 $— $— 
Agricultural production— — — — 16,940 16,940 — — 
Real estate:   
Construction & other land loans— — — — 85,135 85,135 — — 
Commercial real estate - owner occupied154 — — 154 308,318 308,472 — 128 
Commercial real estate - non-owner occupied— 378 — 378 902,015 902,393 — 378 
Farmland1,141 — 384 1,525 137,019 138,544 — 1,525 
Multi-family residential— — — — 131,013 131,013 — — 
1-4 family - close-ended— 2,517 618 3,135 122,270 125,405 — 618 
1-4 family - revolving— — 133 133 35,349 35,482 133 — 
Consumer:    
Manufactured housing924— — 924319,862 320,786 — 601 
Other installment2863— 9187,042 87,133 — — 
Deferred fees— — — — 1,964 1,964 — — 
Total$2,397 $3,007 $1,135 $6,539 $2,290,604 $2,297,143 $133 $3,250 
The following table shows an aging analysis of the loan portfolio by class at December 31, 2023 (in thousands):
 30-59 Days
Past Due		60-89
Days Past
Due		Greater
Than
 89 Days
Past Due		Total Past
Due		CurrentTotal
Loans		Loans Past Due > 89 Days, Still AccruingNon-
accrual
Commercial:        
Commercial and industrial$25 $— $— $25 $105,441 $105,466 $— $— 
Agricultural production507 — — 507 33,049 33,556 — — 
Real estate:—       
Construction & other land loans— — — — 33,472 33,472 — — 
Commercial real estate - owner occupied— — — — 215,146 215,146 — — 
Commercial real estate - non-owner occupied— — — — 539,522 539,522 — — 
Farmland— — — — 120,674 120,674 — — 
Multi-family residential— — — — 61,307 61,307 — — 
1-4 family - close-ended2,973 — — 2,973 93,585 96,558 — — 
1-4 family - revolving— — — — 27,648 27,648 — — 
Consumer169 68 — 237 55,369 55,606 — — 
Deferred fees— — — — 1,842 1,842 — — 
Total$3,674 $68 $— $3,742 $1,287,055 $1,290,797 $— $—