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 March 31, 2024

☐	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 0-32637

AMES NATIONAL CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Iowa	42-1039071
(State of Incorporation)	(I. R. S. Employer Identification Number)

405 Fifth Street

Ames, Iowa 50010

(Address of Principal Executive Offices) (Zip Code)

Registrant's Telephone Number, Including Area Code: (515) 232-6251

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

Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock	ATLO	The NASDAQ Capital Market

Indicate by check mark 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 (Section 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, or a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition 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 ☒

As of April 30, 2024, there were 8,992,167 shares of common stock, par value $2, outstanding.

AMES NATIONAL CORPORATION

INDEX

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (Unaudited)	3
	Consolidated Balance Sheets at March 31, 2024 and December 31, 2023	3
	Consolidated Statements of Income for the three months ended March 31, 2024 and 2023	4
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023	5
	Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2024 and 2023	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023	7
	Notes to Consolidated Financial Statements	9
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	47
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1.A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	49
	Signatures	50

2

AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	March 31,			December 31,
	2024			2023
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	18,362		$	24,105
Interest-bearing deposits in financial institutions and federal funds sold		93,040			30,996
Total cash and cash equivalents		111,402			55,101
Interest-bearing time deposits		7,660			8,904
Securities available-for-sale		723,205			736,389
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost		3,593			3,086
Loans receivable, net		1,272,580			1,277,812
Loans held for sale		739			124
Bank premises and equipment, net		22,289			22,549
Accrued income receivable		12,246			12,953
Bank-owned life insurance		3,151			3,131
Deferred income taxes, net		16,568			16,496
Intangible assets, net		1,342			1,429
Goodwill		12,424			12,424
Other assets		4,643			5,083
Total assets	$	2,191,842		$	2,155,481
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Noninterest-bearing checking	$	354,082		$	370,942
Interest-bearing checking		645,400			611,891
Savings and money market		570,398			552,275
Time, $250 and over		77,276			67,733
Other time		224,967			208,990
Total deposits		1,872,123			1,811,831
Securities sold under agreements to repurchase		53,037			53,994
Other borrowings		90,284			110,588
Dividends payable		2,428			2,428
Accrued interest payable		2,571			4,710
Accrued expenses and other liabilities		5,859			6,142
Total liabilities		2,026,302			1,989,693
STOCKHOLDERS' EQUITY
Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 8,992,167 shares as of March 31, 2024 and December 31, 2023		17,984			17,984
Additional paid-in capital		14,253			14,253
Retained earnings		180,316			180,438
Accumulated other comprehensive (loss)		(47,013	)		(46,887	)
Total stockholders' equity		165,540			165,788
Total liabilities and stockholders' equity	$	2,191,842		$	2,155,481

See Notes to Consolidated Financial Statements.

3

AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(in thousands, except per share data)

	Three Months Ended
	March 31,
	2024			2023
Interest and dividend income:
Loans, including fees	$	15,822		$	13,071
Securities:
Taxable		3,092			3,216
Tax-exempt		535			614
Other interest and dividend income		662			295
Total interest and dividend income		20,111			17,196
Interest expense:
Deposits		7,589			4,715
Other borrowed funds		1,616			812
Total interest expense		9,205			5,527
Net interest income		10,906			11,669
Credit loss expense		169			275
Net interest income after credit loss expense		10,737			11,394
Noninterest income:
Wealth management income		1,195			1,165
Service fees		322			323
Securities (losses), net		(165	)		-
Gain on sale of loans held for sale		83			50
Merchant and card fees		362			414
Other noninterest income		380			302
Total noninterest income		2,177			2,254
Noninterest expense:
Salaries and employee benefits		6,237			5,970
Data processing		1,435			1,321
Occupancy expenses, net		777			810
FDIC insurance assessments		301			170
Professional fees		460			460
Business development		380			359
Intangible asset amortization		87			130
New market tax credit projects amortization		174			192
Other operating expenses, net		343			368
Total noninterest expense		10,194			9,780
Income before income taxes		2,720			3,868
Provision for income taxes		416			671
Net income	$	2,304		$	3,197
Basic and diluted earnings per share	$	0.26		$	0.36
Dividends declared per share	$	0.27		$	0.27

See Notes to Consolidated Financial Statements.

4

AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

(in thousands)

	Three Months Ended
	March 31,
	2024			2023
Net income	$	2,304		$	3,197
Unrealized gains (losses) on securities before tax:
Unrealized holding gains (losses) arising during the period		(327	)		12,885
Plus: reclassification adjustment for losses realized in net income		165			-
Other comprehensive income (loss), before tax		(162	)		12,885
Tax benefit (expense) related to other comprehensive income (loss)		38			(3,067	)
Other income tax effects from tax reform		(2	)		-
Other comprehensive income (loss), net of tax		(126	)		9,818
Comprehensive income	$	2,178		$	13,015

See Notes to Consolidated Financial Statements.

5

AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)

(in thousands, except share and per share data)

Three Months Ended March 31, 2024 and 2023										Accumulated Other			Total
	Common Stock				Additional Paid-in		Retained			Comprehensive			Stockholders'
	Shares		Amount		Capital		Earnings			(Loss)			Equity
Balance, December 31, 2022		8,992,167	$	17,984	$	14,253	$	179,931		$	(63,070	)	$	149,098
Cumulative change in accounting principle		-		-		-		(603	)		-			(603	)
Net income		-		-		-		3,197			-			3,197
Other comprehensive income		-		-		-		-			9,818			9,818
Cash dividends declared, $0.27 per share		-		-		-		(2,428	)		-			(2,428	)
Balance, March 31, 2023		8,992,167	$	17,984	$	14,253	$	180,097		$	(53,252	)	$	159,082
Balance, December 31, 2023		8,992,167	$	17,984	$	14,253	$	180,438		$	(46,887	)	$	165,788
Net income		-		-		-		2,304			-			2,304
Other income tax effects from tax reform		-		-		-		2			-			2
Other comprehensive (loss)		-		-		-		-			(126	)		(126	)
Cash dividends declared, $0.27 per share		-		-		-		(2,428	)		-			(2,428	)
Balance, March 31, 2024		8,992,167	$	17,984	$	14,253	$	180,316		$	(47,013	)	$	165,540

See Notes to Consolidated Financial Statements.

6

AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)

Three Months Ended March 31, 2024 and 2023

	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	2,304		$	3,197
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense for loans		172			212
Credit loss expense (benefit) for off-balance sheet credit exposures		(3	)		63
Amortization of securities available-for-sale and loans, net		260			391
Amortization of intangible assets		87			130
Depreciation		326			290
Provision for deferred income taxes		(34	)		2
Securities losses, net		165			-
Increase in cash value of bank-owned life insurance		(20	)		(19	)
Gain on sales of loans held for sale		(83	)		(50	)
Proceeds from loans held for sale		3,309			2,176
Originations of loans held for sale		(3,841	)		(2,285	)
Amortization of investment in New Markets Tax Credit projects		174			192
Change in assets and liabilities:
Decrease in accrued income receivable		707			681
Decrease in other assets		264			629
Increase (decrease) in accrued interest payable		(2,139	)		436
Increase (decrease) in accrued expenses and other liabilities		(280	)		450
Net cash provided by operating activities		1,368			6,495
CASH FLOWS FROM INVESTING ACTIVITIES
Change in interest-bearing time deposits		1,244			746
Purchase of securities available-for-sale		(8,650	)		(3,744	)
Proceeds from sale of securities available-for-sale		2,049			-
Proceeds from maturities and calls of securities available-for-sale		19,157			13,698
Purchase of FHLB stock		(3,309	)		(8,009	)
Proceeds from the redemption of FHLB and FRB stock		2,802			9,294
Net decrease in loans		5,101			1,018
Purchase of premises and equipment		(64	)		(1,560	)
Net cash provided by investing activities		18,330			11,443
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in deposits		60,292			(1,164	)
Increase (decrease) in securities sold under agreements to repurchase		(957	)		5,526
Payments on other borrowings		(91,304	)		(75,150	)
Proceeds from other borrowings		88,000			150,000
Net (payments on) FHLB short-term borrowings		(17,000	)		(35,420	)
Dividends paid		(2,428	)		(2,428	)
Net cash provided by financing activities		36,603			41,364
Net increase in cash and cash equivalents		56,301			59,302
CASH AND CASH EQUIVALENTS
Beginning		55,101			27,884
Ending	$	111,402		$	87,186

7

AMES NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (unaudited)

(in thousands)

Three Months Ended March 31, 2024 and 2023

	2024		2023
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	11,344	$	5,512
Income taxes		-		-
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
Dividends declared, not paid	$	2,428	$	2,428

See Notes to Consolidated Financial Statements.

8

AMES NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

1. Significant Accounting Policies

The accompanying unaudited consolidated financial statements have been prepared by Ames National Corporation (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these interim financial statements be read in conjunction with the year-end audited financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). The consolidated balance sheet of the Company as of December 31, 2023 has been derived from the audited consolidated balance sheet of the Company as of that date. In the opinion of management, the accompanying consolidated financial statements of the Company contain all adjustments necessary to fairly present the financial results for the interim periods reported. Those adjustments consist only of normal recurring adjustments. The results of operations for the interim periods are not necessarily indicative of results which may be expected for an entire year. The consolidated financial statements include the accounts of the Company and its wholly-owned banking subsidiaries (the “Banks”). All significant intercompany balances and transactions have been eliminated in consolidation.

Subsequent Events: The Company has evaluated subsequent events through the filing date of this Quarterly Report on Form 10-Q with the SEC.

On April 25, 2024, the Company entered into a promissory note and related business loan agreement with a commercial bank, providing for a revolving line of credit facility in an amount of up to five million dollars maturing on April 25, 2026. The Company has secured its obligations under the Credit Agreement by pledging to the Lender all outstanding shares of common stock of its subsidiary bank, Reliance State Bank.

Goodwill: Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill resulting from acquisitions is not amortized but is tested for impairment annually or whenever events change, and circumstances indicate that it is more likely than not that an impairment loss has occurred. Goodwill is tested for impairment with an estimation of the fair value of a reporting unit.

The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Company’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Company’s stock price. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. The Company completed a quantitative assessment of goodwill as of October 1, 2023 which indicated that goodwill was not impaired. Subsequently, the Company determined there were no adverse changes in criteria and key considerations to the previous assessment. Accordingly, the Company concluded there is no impairment of goodwill as of March 31, 2024.

9

New and Pending Accounting Pronouncements:

In March 2023, the FASB issued ASU No. 2024-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using Proportional Amortization Method. The ASU is intended to improve the accounting and disclosures for investments in tax credit structures. It allows reporting entities to elect to adopt for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The ASU did not have a material impact on the Company’s financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation table and income taxes paid to be disaggregated by jurisdiction. It also includes certain amendments to improve the effectiveness of income tax disclosures. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.

2. Dividends

On February 14, 2024, the Company declared a cash dividend on its common stock, payable on May 15, 2024 to stockholders of record as of May 1, 2024, equal to $0.27 per share.

3. Earnings Per Share

Earnings per share amounts were calculated using the weighted average shares outstanding during the periods presented. The weighted average outstanding shares for the three months ended March 31, 2024 and 2023 was 8,992,167. The Company had no potentially dilutive securities outstanding during the periods presented.

4. Off-Balance Sheet Arrangements

The Company is party to financial instruments with off-balance sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. No material changes in the Company’s off-balance sheet arrangements have occurred since December 31, 2023.

10

5. Fair Value Measurements

Assets and liabilities carried at fair value are required to be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value.

Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets.

Level 2: Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatility, prepayment speeds, credit risk); or inputs derived principally from or can be corroborated by observable market data by correlation or other means.         

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis.

Securities available-for-sale: Level 1 securities include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. U.S. government agencies, mortgage-backed securities, state and political subdivisions, and most corporate bonds are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

Derivative financial instruments and loans receivable: The Company’s derivative financial instruments and loans receivable consist of interest rate swaps on loans accounted for as fair value hedges. The Company’s derivative financial instruments also include back-to-back loan swaps to assist customers in managing their interest rate risk while executing offsetting interest rate swaps with dealer counterparties. The Company's derivative positions and related loans are classified within Level 2 of the fair value hierarchy and are valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers and/or non-binding broker-dealer quotations. The fair value of the derivatives and loans are determined using discounted cash flow models. These models’ key assumptions include the contractual terms of the respective contract along with significant observable inputs, including interest rates, yield curves, nonperformance risk and volatility.

11

The following table presents the balances of assets measured at fair value on a recurring basis by level as of March 31, 2024 and December 31, 2023 (in thousands):

Description	Total		Level 1		Level 2		Level 3
2024
Assets
Securities available-for-sale
U.S. government treasuries	$	200,328	$	200,328	$	-	$	-
U.S. government agencies		92,265		-		92,265		-
U.S. government mortgage-backed securities		98,159		-		98,159		-
State and political subdivisions		262,855		-		262,855		-
Corporate bonds		69,598		-		69,598		-
Loans receivable		8,096		-		8,096		-
Derivative financial instruments		1,203		-		1,203		-
Liabilities
Derivative financial instruments	$	238	$	-	$	238	$	-
2023
Assets
Securities available-for-sale
U.S. government treasuries	$	200,088	$	200,088	$	-	$	-
U.S. government agencies		92,615		-		92,615		-
U.S. government mortgage-backed securities		101,864		-		101,864		-
State and political subdivisions		269,891		-		269,891		-
Corporate bonds		71,931		-		71,931		-
Loans receivable		8,327		-		8,327		-
Derivative financial instruments		1,225		-		1,225		-
Liabilities
Derivative financial instruments	$	745	$	-	$	745	$	-

Certain assets are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment or a change in previously recognized impairment).  The following table presents the assets carried on the balance sheet (after specific reserves) by caption and by level within the valuation hierarchy as of March 31, 2024 and December 31, 2023 (in thousands):

Description	Total		Level 1		Level 2		Level 3
2024
Collateral dependent loans	$	111	$	-	$	-	$	111
2023
Collateral dependent loans	$	105	$	-	$	-	$	105

12

The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 are as follows (in thousands):

	2024
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Collateral dependent loans	$	111	Evaluation of collateral	Estimation of value		NM*

	2023
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Collateral dependent loans	$	105	Evaluation of collateral	Estimation of value		NM*

* Not Meaningful.

Evaluations of the underlying assets are completed for each collateral dependent impaired loan with a specific reserve. The types of collateral vary widely and could include accounts receivables, inventory, a variety of equipment and real estate. Collateral evaluations are reviewed and discounted as appropriate based on knowledge of the specific type of collateral. In the case of real estate, an independent appraisal may be obtained. Types of discounts considered included aging of receivables, condition of the collateral, potential market for the collateral and estimated disposal costs. These discounts will vary from loan to loan, thus providing a range would not be meaningful.

13

GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or nonrecurring basis. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an 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. The following table includes the carrying amounts and estimated fair values of the Company’s financial assets and liabilities as of March 31, 2024 and December 31, 2023 (in thousands):

		2024				2023
	Fair Value			Estimated				Estimated
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	111,402	$	111,402	$	55,101	$	55,101
Interest-bearing time deposits	Level 1		7,660		7,239		8,904		8,444
Securities available-for-sale	See previous table		723,205		723,205		736,389		736,389
FHLB and FRB stock	Level 2		3,593		3,593		3,086		3,086
Loans receivable, net	Level 2		1,272,580		1,217,229		1,277,812		1,224,446
Loans held for sale	Level 2		739		739		124		124
Accrued income receivable	Level 1		12,246		12,246		12,953		12,953
Derivative financial instruments	Level 2		1,203		1,203		1,225		1,225
Financial liabilities:
Deposits	Level 2	$	1,872,123	$	1,873,135	$	1,811,831	$	1,812,718
Securities sold under agreements to repurchase	Level 1		53,037		53,037		53,994		53,994
Other borrowings	Level 2		90,284		84,252		110,588		110,376
Accrued interest payable	Level 1		2,571		2,571		4,710		4,710
Derivative financial instruments	Level 2		238		238		745		745

The methodologies used to determine fair value as of March 31, 2024 did not change from the methodologies described in the December 31, 2023 Annual Financial Statements.

Commitments to extend credit and standby letters of credit: The fair values of commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and credit worthiness of the counterparties. The carrying value and fair value of the commitments to extend credit and standby letters of credit are not considered significant.

Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

14

6. Debt Securities

The amortized cost of securities available-for-sale and their approximate fair values as of March 31, 2024 and December 31, 2023 are summarized below (in thousands):

2024:			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	213,801	$	8	$	(13,481	)	$	200,328
U.S. government agencies		99,124		2		(6,861	)		92,265
U.S. government mortgage-backed securities		112,244		1		(14,086	)		98,159
State and political subdivisions		285,410		55		(22,610	)		262,855
Corporate bonds		75,102		5		(5,509	)		69,598
	$	785,681	$	71	$	(62,547	)	$	723,205

2023:			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	213,646	$	29	$	(13,587	)	$	200,088
U.S. government agencies		99,455		2		(6,842	)		92,615
U.S. government mortgage-backed securities		115,988		-		(14,124	)		101,864
State and political subdivisions		292,475		93		(22,677	)		269,891
Corporate bonds		77,139		11		(5,219	)		71,931
	$	798,703	$	135	$	(62,449	)	$	736,389

The amortized cost and fair value of debt securities available-for-sale as of March 31, 2024, are shown below by expected maturity. Expected maturity will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands).

	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	93,493	$	91,733
Due after one year through five years		387,739		361,233
Due after five years through ten years		183,240		163,988
Due after ten years		8,965		8,092
	$	673,437	$	625,046
U.S. government mortgage-backed securities		112,244		98,159
Total	$	785,681	$	723,205

The Company's investment portfolio had an expected duration of 3.42 years as of March 31, 2024.

Securities with a carrying value of $388.7 million and $374.4 million at March 31, 2024 and December 31, 2023, respectively, were pledged on public deposits, securities sold under agreements to repurchase, other borrowings and for other purposes as required or permitted by law.

15

The proceeds and gains on securities available-for-sale for the three months ended March 31, 2024 and 2023 are summarized below (in thousands):

	Three Months Ended
	March 31,
	2024			2023
Proceeds from sales of securities available-for-sale	$	2,049		$	-
Gross realized gains on securities available-for-sale		-			-
Gross realized losses on securities available-for-sale		(165	)		-

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 and December 31, 2023 are summarized as follows (in thousands):

	Less than 12 Months							12 Months or More							Total
2024:	Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government treasuries	$	4,491	$	(19	)		2	$	193,044	$	(13,462	)		118	$	197,535	$	(13,481	)
U.S. government agencies		1,913		(18	)		2		85,896		(6,843	)		75		87,809		(6,861	)
U.S. government mortgage-backed securities		124		(1	)		1		97,580		(14,085	)		155		97,704		(14,086	)
State and political subdivisions		9,083		(125	)		20		247,740		(22,485	)		473		256,823		(22,610	)
Corporate bonds		3,115		(110	)		4		65,492		(5,399	)		81		68,607		(5,509	)
	$	18,726	$	(273	)		29	$	689,752	$	(62,274	)		902	$	708,478	$	(62,547	)

	Less than 12 Months							12 Months or More							Total
2023:	Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government treasuries	$	-	$	-			-	$	196,432	$	(13,587	)		121	$	196,432	$	(13,587	)
U.S. government agencies		1,986		(11	)		2		90,137		(6,831	)		78		92,123		(6,842	)
U.S. government mortgage-backed securities		467		(12	)		4		101,265		(14,112	)		155		101,732		(14,124	)
State and political subdivisions		9,054		(73	)		18		251,286		(22,604	)		474		260,340		(22,677	)
Corporate bonds		3,117		(108	)		4		67,816		(5,111	)		84		70,933		(5,219	)
	$	14,624	$	(204	)		28	$	706,936	$	(62,245	)		912	$	721,560	$	(62,449	)

Gross unrealized losses on debt securities totaled $62.5 million as of March 31, 2024. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, state or political subdivision, or corporations. Management then determines whether downgrades by bond rating agencies have occurred, and reviews industry analysts’ reports. The Company’s procedures for evaluating investments in states, municipalities and political subdivisions include but are not limited to reviewing the offering statement and the most current available financial information, comparing yields to yields of bonds of similar credit quality, confirming capacity to repay, assessing operating and financial performance, evaluating the stability of tax revenues, considering debt profiles and local demographics, and for revenue bonds, assessing the source and strength of revenue structures for municipal authorities. These procedures, as applicable, are utilized for all municipal purchases and are utilized in whole or in part for monitoring the portfolio of municipal holdings. The Company does not utilize third party credit rating agencies as a primary component of determining if the municipal issuer has an adequate capacity to meet the financial commitments under the security for the projected life of the investment, and, therefore, does not compare internal assessments to those of the credit rating agencies. Credit rating downgrades are utilized as an additional indicator of credit weakness and as a reference point for historical default rates. As of March 31, 2024 and December 31, 2023, the Company determined that no individual securities in an unrealized loss position represented credit losses that would require an allowance for credit losses. The Company concluded that the unrealized losses were primarily attributable to increases in market interest rates since these securities were purchased and other market conditions. Accrued interest receivable on AFS debt securities totaled $4.0 million and $3.5 million as of March 31, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses.

16

7. Loans Receivable and Credit Disclosures

The composition of loans receivable as of March 31, 2024 and December 31, 2023 is as follows (in thousands):

	2024			2023
Real estate - construction	$	70,095		$	63,050
Real estate - 1 to 4 family residential		288,988			289,404
Real estate - multi-family		196,010			195,536
Real estate - commercial		353,061			359,266
Real estate - agricultural		160,457			161,517
Commercial		87,751			89,729
Agricultural		117,254			119,136
Consumer and other		15,854			16,540
		1,289,470			1,294,178
Unallocated portfolio layer basis adjustments1		62			410
Less allowance for credit losses		(16,952	)		(16,776	)
Loans receivable, net	$	1,272,580		$	1,277,812

¹ This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under the portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 10 (“Derivative Financial Instruments”) for additional information.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses (ACL) and other basis adjustments. Amortized cost is the principal balance outstanding, net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Accrued interest receivable on loans held for investment totaled $8.3 million and $9.4 million as of March 31, 2024 and December 30, 2023, respectively, and is excluded from the estimate of credit losses. Nonrefundable loan fees and origination costs are deferred and recognized as a yield adjustment over the life of the related loan.

The policy for charging off loans is consistent throughout all loan categories. A loan is charged off based on criteria that includes but is not limited to: delinquency status, financial condition of the entire customer credit line and underlying collateral coverage, economic or external conditions that might impact full repayment of the loan, legal issues, overdrafts, and the customer’s willingness to work with the Company.

17

Allowance for Credit Losses for Loans. The allowance for credit losses is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. Expected credit loss inherent in non-cancelable off-balance-sheet (“OBS”) credit exposures is accounted for as a separate liability on the balance sheet. The Company's allowance for credit losses for OBS was $1.1 million as of March 31, 2024 and December 31, 2023. The allowance for credit losses for loans held for investment, as reported in our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

The credit loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments which consist of construction real estate, 1 to 4 family residential real estate, multi-family real estate, commercial real estate, agricultural real estate, commercial, agricultural and consumer and other lending. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The key components in this estimation process include the following:

● An initial forecast period of one year for all portfolio segments and OBS credit exposures. This period reflects management's expectation of losses based on forward-looking economic scenarios over that time.

● A historical loss forecast period covering the remaining contractual life, adjusted for prepayments, by portfolio segment based on the change in key historical economic variables.

● A reversion period of 1 year connecting the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date.

The Company primarily utilizes loss rate based undiscounted cash flow (UDCF) methods to estimate credit losses by portfolio segment. The UDCF methods obtain estimated life-time credit losses using the conceptual components described above.

Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimation of expected credit losses. The following provides the credit quality indicators and risk elements that are most relevant and most carefully considered and monitored for each loan portfolio segment.

Construction loans are underwritten utilizing independent appraisals, sensitivity analysis of absorption, vacancy and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. These estimates may prove to be inaccurate primarily due to unforeseen circumstances beyond the control of the borrower or lender. Construction loans often involve the disbursement of funds with repayment substantially dependent on the success of the ultimate project. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. The Company may require guarantees on these loans. The Company’s construction loans are secured primarily by properties located in its primary market area. National unemployment rate is a key economic forecast used in estimating expected credit losses for this segment.

18

The Company originates 1-4 family real estate loans utilizing credit reports to supplement the underwriting process. The Company’s underwriting standards for 1-4 family loans are generally in accordance with FHLMC and FNMA manual underwriting guidelines. Properties securing 1-4 family real estate loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function and have been approved by the Board of Directors. The loan-to-value ratios normally do not exceed 90% without credit enhancements such as mortgage insurance. The Company will lend up to 100% of the lesser of the appraised value or purchase price for conventional 1-4 family real estate loans, provided private mortgage insurance is obtained. The Company’s 1-4 family real estate loans are secured primarily by properties located in its primary market area. The national unemployment rate is a key economic forecast used in estimating expected credit losses for this segment.

Multi-family, commercial and agricultural real estate loans are subject to underwriting standards and processes similar to commercial and agricultural operating loans, in addition to those unique to real estate loans. These loans are viewed primarily as cash flow loans and, secondarily, as loans secured by real estate. Multi-family, commercial and agricultural real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Loan-to-value generally does not exceed 80% of the cost or value of the assets. Loans are typically subject to interest rate adjustments between five and seven years from origination. Fully amortized monthly repayment terms normally do not exceed twenty-five years. Projections and cash flows that show ability to service debt within the amortization period are required. Property and casualty insurance is required to protect the Banks’ collateral interests. Appraisals on properties securing these loans are generally performed by fee appraisers approved by the Board of Directors. Because payments on multi-family, commercial and agricultural real estate loans are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. Management monitors and evaluates commercial and agricultural real estate loans based on collateral and risk rating criteria. The Company may require guarantees on these loans. The Company’s multi-family, commercial and agricultural real estate loans are secured primarily by properties located in its primary market areas. The national unemployment rate and the national real gross domestic product (GDP) are key economic forecasts used in estimating expected credit losses for the multi-family and commercial real estate segments. The national real GDP is a key economic forecast used in estimating expected credit losses for the agricultural real estate segment.

Commercial and agricultural operating loans are underwritten based on the Company’s examination of current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. This underwriting includes the evaluation of cash flows of the borrower, underlying collateral, if applicable, and the borrower’s ability to manage its business activities. The cash flows of borrowers and the collateral securing these loans may fluctuate in value after the initial evaluation. A first priority lien on the general assets of the business normally secures these types of loans. Loan-to-value limits vary and are dependent upon the nature and type of the underlying collateral and the financial strength of the borrower. Crop and hail insurance is required for most agricultural borrowers. Loans are generally guaranteed by the principal(s). The Company’s commercial and agricultural operating lending is primarily in its primary market area. The national unemployment rate and the national real GDP are key economic forecasts used in estimating expected credit losses for the commercial operating segment. The national real GDP is a key economic forecast used in estimating expected credit losses for the agricultural operating segment.

19

Consumer and other loans utilize credit reports to supplement the underwriting process. The underwriting standards include a determination of the applicant’s payment history on other debts and an assessment of their ability to meet existing obligations and payments on the proposed loan. To monitor and manage loan risk, policies and procedures are developed and modified, as needed by management. This activity, coupled with smaller loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, market conditions are reviewed by management on a regular basis. The Iowa real GDP and Iowa retail trade earnings are key economic forecasts used in estimating expected credit losses for this segment.

Activity in the allowance for credit losses, on a disaggregated basis, for the three months ended March 31, 2024 and 2023 is as follows (in thousands):

	Three Months Ended March 31, 2024
			1-4 Family
	Construction		Residential			Multi-family			Commercial		Agricultural									Consumer
	Real Estate		Real Estate			Real Estate			Real Estate		Real Estate			Commercial			Agricultural			and Other			Total
Balance, December 31, 2023	$	408	$	3,333		$	2,542		$	5,236	$	1,238		$	1,955		$	1,607		$	457		$	16,776
Credit loss expense (benefit) 1		45		(25	)		(5	)		258		(17	)		(43	)		(19	)		(22	)		172
Recoveries of loans charged-off		-		1			-			-		-			1			-			2			4
Loans charged-off		-		-			-			-		-			-			-			-			-
Balance, March 31, 2024	$	453	$	3,309		$	2,537		$	5,494	$	1,221		$	1,913		$	1,588		$	437		$	16,952

(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $3 thousand related to off-balance sheet credit exposures.

	Three Months Ended March 31, 2023
				1-4 Family
	Construction			Residential		Multi-family			Commercial			Agricultural									Consumer
	Real Estate			Real Estate		Real Estate			Real Estate			Real Estate			Commercial			Agricultural			and Other		Total
Balance, December 31, 2022	$	730		$	3,028	$	2,493		$	4,742		$	1,625		$	1,153		$	1,705		$	221	$	15,697
Impact of adopting ASC 326		(395	)		242		(24	)		513			(398	)		449			(61	)		192		518
Credit loss expense (benefit) 2		56			17		99			(54	)		(9	)		183			(88	)		8		212
Recoveries of loans charged-off		-			1		-			5			-			3			-			1		10
Loans charged-off		-			-		-			-			-			(4	)		(164	)		-		(168	)
Balance, March 31, 2023	$	391		$	3,288	$	2,568		$	5,206		$	1,218		$	1,784		$	1,392		$	422	$	16,269

(2) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense of $63 thousand related to off-balance sheet credit exposures.

20

Collateral Dependent Loans. The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans (in thousands):

	Primary Type of Collateral
March 31, 2024	Real Estate		Equipment		Other		Total		ACL Allocation
Real estate - construction	$	62	$	-	$	-	$	62	$	-
Real estate - 1 to 4 family residential		666		-		-		666		3
Real estate - multi-family		2,020		-		-		2,020		-
Real estate - commercial		8,698		-		-		8,698		-
Real estate - agricultural		444		-		-		444		-
Commercial		114		2		95		211		93
Agricultural		233		389		402		1,024		-
Consumer and other		-		-		7		7		-
	$	12,237	$	391	$	504	$	13,132	$	96

	Primary Type of Collateral
December 31, 2023	Real Estate		Equipment		Other		Total		ACL Allocation
Real estate - construction	$	66	$	-	$	-	$	66	$	-
Real estate - 1 to 4 family residential		678		-		-		678		10
Real estate - multi-family		2,034		-		-		2,034		-
Real estate - commercial		8,993		-		-		8,993		-
Real estate - agricultural		449		-		-		449		-
Commercial		118		-		101		219		96
Agricultural		239		669		402		1,310		-
Consumer and other		-		-		-		-		-
	$	12,577	$	669	$	503	$	13,749	$	106

Nonaccrual Loans. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower's ability to meet payments of interest or principal when they become due, which is generally when a loan is 90 days or more past due unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual status, all previously accrued and unpaid interest is reversed against interest income. Loans are returned to an accrual status when all of the principal and interest amounts contractually due are brought current and repayment of the remaining contractual principal and interest is expected. A loan may also return to accrual status if additional collateral is received from the borrower and, in the opinion of management, the financial position of the borrower indicates that there is no longer any reasonable doubt as to the collection of the amount contractually due. Payment received on nonaccrual loans are applied first to principal. Once principal is recovered, any remaining payments received are applied to interest income.

21

The following table presents the amortized cost basis of loans on nonaccrual status and loans on nonaccrual status with no allowance for credit losses recorded by loan segment (in thousands):

	Total Nonaccrual				Nonaccrual with no ACL
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Real estate - construction	$	62	$	66	$	62	$	66
Real estate - 1 to 4 family residential		666		678		552		563
Real estate - multi-family		2,020		2,034		2,020		2,034
Real estate - commercial		8,698		8,976		8,698		8,976
Real estate - agricultural		444		449		444		449
Commercial		258		268		165		172
Agricultural		1,024		1,310		1,024		1,310
Consumer and other		18		13		7		-
	$	13,190	$	13,794	$	12,972	$	13,570

The interest foregone on nonaccrual loans for the three months ended March 31, 2024 and 2023 was approximately $239 thousand and $179 thousand, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty. Loan modifications may include interest rate reductions or below market interest rates, extension of payments terms beyond the original maturity date, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses.

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a loss rate model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification.

The Company made no loan modifications and three loan modifications to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and 2023, respectively.

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by segment of financing receivable and type of concession granted (in thousands):

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Term Extension
	Amortized Cost Basis at		% of Total Segment of
	March 31, 2024		Financing Receivable
Loan Type
Agricultural	$	336		0.3	%

22

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Term Extension
Loan Type	Financial Effect
Agricultural	Added a weighted-average 8 years to the life of loans, which reduced monthly payment amounts for the borrowers

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The Company had no net charge-offs for the three months ended March 31, 2024 and 2023 related to loan modifications to borrowers experiencing financial difficulties.

There were two loan modifications with an amortized cost basis of $42 thousand that had a payment default and were modified in the twelve months before default as of March 31, 2024. A loan is considered to be in payment default once it is 60 days contractually past due under the modified terms.

Aging Analysis. An aging analysis of the recorded investments in loans, on a disaggregated basis, as of March 31, 2024 and December 31, 2023, is as follows (in thousands):

2024			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	-	$	-	$	-	$	70,095	$	70,095	$	-
Real estate - 1 to 4 family residential		978		309		1,287		287,701		288,988		96
Real estate - multi-family		-		982		982		195,028		196,010		-
Real estate - commercial		118		-		118		352,943		353,061		-
Real estate - agricultural		111		-		111		160,346		160,457		-
Commercial		213		95		308		87,443		87,751		-
Agricultural		134		403		537		116,717		117,254		14
Consumer and other		4		7		11		15,843		15,854		-
	$	1,558	$	1,796	$	3,354	$	1,286,116	$	1,289,470	$	110

2023			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	359	$	66	$	425	$	62,625	$	63,050	$	-
Real estate - 1 to 4 family residential		1,020		302		1,322		288,082		289,404		3
Real estate - multi-family		-		983		983		194,553		195,536		-
Real estate - commercial		119		106		225		359,041		359,266		106
Real estate - agricultural		-		-		-		161,517		161,517		-
Commercial		559		98		657		89,072		89,729		-
Agricultural		169		529		698		118,438		119,136		-
Consumer and other		16		-		16		16,524		16,540		-
	$	2,242	$	2,084	$	4,326	$	1,289,852	$	1,294,178	$	109

23

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk ratings of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in our market areas.

The Company utilizes a risk rating matrix to assign risk ratings to each of its loans. Loans are rated on a scale of 1 to 7. A description of the general characteristics of the risk ratings is as follows:

Ratings 1, 2 and 3 - These ratings include “Pass” loans of average to excellent credit quality borrowers. These borrowers generally have significant capital strength, moderate leverage and stable earnings and growth commensurate to their relative risk rating. These ratings are reviewed at least annually. These ratings also include performing loans of less than $100,000.

Rating 4 - This rating includes loans on management’s “watch list” and is intended to be utilized for pass rated borrowers where credit quality has begun to show signs of financial weakness that now requires management’s heightened attention. This rating is reviewed at least quarterly.

Rating 5 - This rating is for “Special Mention” loans in accordance with regulatory guidelines. This rating is intended to be temporary and includes loans to borrowers whose credit quality has clearly deteriorated and are at risk of further decline unless active measures are taken to correct the situation. This rating is reviewed at least quarterly.

Rating 6 - This rating includes “Substandard” loans in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Under regulatory guideline definitions, a “Substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. This rating is reviewed at least quarterly.

Rating 7 - This rating includes “Substandard-Impaired” loans in accordance with regulatory guidelines, for which the accrual of interest has generally been stopped. This rating includes loans: (i) where interest is more than 90 days past due, (ii) not fully secured, (iii) where a specific valuation allowance may be necessary, or (iv) where the borrower is unable to make contractual principal and interest payments. This rating is reviewed at least quarterly.

24

The following tables show the risk category of loans by loan segment and year of origination as of March 31, 2024 and December 31, 2023 (in thousands):

March 31, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Real estate - construction
Pass	$	9,726	$	43,869	$	13,901	$	246	$	11	$	324	$	1,877	$	69,954
Watch				79		-		-		-		-		-		79
Special Mention				-		-		-		-		-		-		-
Substandard				-		-		-		-		-		-		-
Substandard-Impaired		62		-		-		-		-		-		-		62
Total	$	9,788	$	43,948	$	13,901	$	246	$	11	$	324	$	1,877	$	70,095
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - 1-4 family residential
Pass	$	9,509	$	52,327	$	64,412	$	58,158	$	46,192	$	23,741	$	18,245	$	272,584
Watch		83		1,513		293		10,265		915		350		82		13,501
Special Mention		-		-		-		-		299		-		-		299
Substandard		-		444		17		1,337		47		93		-		1,938
Substandard-Impaired		74		114		-		142		-		336		-		666
Total	$	9,666	$	54,398	$	64,722	$	69,902	$	47,453	$	24,520	$	18,327	$	288,988
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - multi-family
Pass	$	1,872	$	18,825	$	51,511	$	46,627	$	39,806	$	13,723	$	4,751	$	177,115
Watch		-		5,053		1,420		8,129		-		-		-		14,602
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		2,274		-		-		2,274
Substandard-Impaired		-		983		-		-		-		1,036		-		2,019
Total	$	1,872	$	24,861	$	52,931	$	54,756	$	42,080	$	14,759	$	4,751	$	196,010
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - commercial
Pass	$	5,600	$	35,237	$	79,514	$	45,635	$	65,375	$	31,842	$	3,323	$	266,526
Watch		111		8,309		13,442		14,533		13,938		651		2,542		53,526
Special Mention		-		-		2,529		6,205		2,978		1,035		-		12,747
Substandard		-		847		-		10,190		544		-		-		11,581
Substandard-Impaired		-		8,326		-		-		-		355		-		8,681
Total	$	5,711	$	52,719	$	95,485	$	76,563	$	82,835	$	33,883	$	5,865	$	353,061
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - agricultural
Pass	$	7,570	$	20,913	$	30,100	$	31,682	$	24,924	$	26,367	$	1,594	$	143,150
Watch		-		4,227		378		2,226		2,699		3,581		-		13,111
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		2,279		1,439		113		-		214		-		4,045
Substandard-Impaired		-		-		-		151		-		-		-		151
Total	$	7,570	$	27,419	$	31,917	$	34,172	$	27,623	$	30,162	$	1,594	$	160,457
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

25

March 31, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Commercial
Pass	$	5,216	$	21,106	$	11,818	$	9,732	$	1,923	$	3,821	$	27,287	$	80,903
Watch		632		539		275		64		368		203		1,746		3,827
Special Mention		-		-		-		-		-		-		-		-
Substandard		599		-		209		-		417		-		1,538		2,763
Substandard-Impaired		44		46		-		4		93		71		-		258
Total	$	6,491	$	21,691	$	12,302	$	9,800	$	2,801	$	4,095	$	30,571	$	87,751
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural
Pass	$	8,212	$	11,314	$	6,741	$	4,686	$	2,247	$	881	$	64,304	$	98,385
Watch		4,280		579		374		347		388		212		10,420		16,600
Special Mention		-		-		-		-		-		-		-		-
Substandard		1,420		46		14		25		43		-		-		1,548
Substandard-Impaired		-		96		-		236		-		-		389		721
Total	$	13,912	$	12,035	$	7,129	$	5,294	$	2,678	$	1,093	$	75,113	$	117,254
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer and other
Pass	$	1,158	$	5,847	$	3,262	$	2,476	$	1,930	$	1,019	$	118	$	15,810
Watch		15		1		-		-		-		-		-		16
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		8		-		-		-		-		-		8
Substandard-Impaired		-		-		9		-		11		-		-		20
Total	$	1,173	$	5,856	$	3,271	$	2,476	$	1,941	$	1,019	$	118	$	15,854
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total loans
Pass	$	48,863	$	209,438	$	261,259	$	199,242	$	182,408	$	101,718	$	121,499	$	1,124,427
Watch		5,121		20,300		16,182		35,564		18,308		4,997		14,790		115,262
Special Mention		-		-		2,529		6,205		3,277		1,035		-		13,046
Substandard		2,019		3,624		1,679		11,665		3,325		307		1,538		24,157
Substandard-Impaired		180		9,565		9		533		104		1,798		389		12,578
Total	$	56,183	$	242,927	$	281,658	$	253,209	$	207,422	$	109,855	$	138,216	$	1,289,470
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

26

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Real estate - construction
Pass	$	45,404	$	14,501	$	746	$	11	$	-	$	325	$	1,917	$	62,904
Watch		80		-		-		-		-		-		-		80
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard-Impaired		-		66		-		-		-		-		-		66
Total	$	45,484	$	14,567	$	746	$	11	$	-	$	325	$	1,917	$	63,050
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - 1-4 family residential
Pass	$	55,051	$	66,190	$	59,250	$	47,865	$	8,607	$	17,154	$	18,649	$	272,766
Watch		1,608		298		10,483		1,226		-		358		27		14,000
Special Mention		-		-		-		-		-		-		-		-
Substandard		448		18		1,350		47		33		64		-		1,960
Substandard-Impaired		115		-		140		-		199		144		80		678
Total	$	57,222	$	66,506	$	71,223	$	49,138	$	8,839	$	17,720	$	18,756	$	289,404
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - multi-family
Pass	$	18,436	$	51,928	$	47,161	$	40,201	$	13,542	$	694	$	5,020	$	176,982
Watch		4,603		1,427		8,192		-		-		-		-		14,222
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		2,298		-		-		-		2,298
Substandard-Impaired		983		-		-		-		1,051		-		-		2,034
Total	$	24,022	$	53,355	$	55,353	$	42,499	$	14,593	$	694	$	5,020	$	195,536
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - commercial
Pass	$	35,133	$	81,342	$	51,598	$	66,467	$	20,006	$	13,122	$	2,929	$	270,597
Watch		8,379		13,580		14,669		14,607		78		583		2,988		54,884
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		897		-		4,822		551		-		106		-		6,376
Substandard-Impaired		8,517		-		99		-		360		-		-		8,976
Total	$	52,926	$	97,453	$	83,041	$	84,631	$	21,487	$	13,811	$	5,917	$	359,266
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - agricultural
Pass	$	22,469	$	30,738	$	32,893	$	27,733	$	6,039	$	22,850	$	2,073	$	144,795
Watch		4,163		379		2,263		1,760		333		3,601		-		12,499
Special Mention		-		-		-		-		-		-		-		-
Substandard		2,302		1,439		114		-		-		214		-		4,069
Substandard-Impaired		-		-		154		-		-		-		-		154
Total	$	28,934	$	32,556	$	35,424	$	29,493	$	6,372	$	26,665	$	2,073	$	161,517
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

27

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Commercial
Pass	$	23,904	$	12,645	$	10,378	$	2,087	$	2,434	$	1,578	$	29,752	$	82,778
Watch		860		295		119		423		93		137		1,996		3,923
Special Mention		-		-		-		-		-		-		-		-
Substandard		600		256		-		421		-		-		1,484		2,761
Substandard-Impaired		94		-		5		96		-		72		-		267
Total	$	25,458	$	13,196	$	10,502	$	3,027	$	2,527	$	1,787	$	33,232	$	89,729
Current-period gross writeoffs	$	-	$	-	$	-	$	33	$	-	$	4	$	-	$	37
Agricultural
Pass	$	14,614	$	8,395	$	5,459	$	2,858	$	400	$	608	$	77,448	$	109,782
Watch		1,107		340		288		18		18		194		5,419		7,384
Special Mention		-		-		-		-		-		-		-		-
Substandard		866		14		25		58		-		-		-		963
Substandard-Impaired		95		140		383		-		-		-		389		1,007
Total	$	16,682	$	8,889	$	6,155	$	2,934	$	418	$	802	$	83,256	$	119,136
Current-period gross writeoffs	$	39	$	74	$	90	$	-	$	-	$	-	$	-	$	203
Consumer and other
Pass	$	6,801	$	3,719	$	2,701	$	2,071	$	352	$	731	$	15	$	16,390
Watch		127		-		-		-		-		-		-		127
Special Mention		-		-		-		-		-		-		-		-
Substandard		10		-		-		-		-		-		-		10
Substandard-Impaired		-		-		-		13		-		-		-		13
Total	$	6,938	$	3,719	$	2,701	$	2,084	$	352	$	731	$	15	$	16,540
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	5	$	-	$	5
Total loans
Pass	$	221,812	$	269,458	$	210,186	$	189,293	$	51,380	$	57,062	$	137,803	$	1,136,994
Watch		20,927		16,319		36,014		18,034		522		4,873		10,430		107,119
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		5,123		1,727		6,311		3,375		33		384		1,484		18,437
Substandard-Impaired		9,804		206		781		109		1,610		216		469		13,195
Total	$	257,666	$	290,241	$	265,145	$	213,817	$	54,588	$	62,535	$	150,186	$	1,294,178
Current-period gross writeoffs	$	39	$	74	$	90	$	33	$	-	$	9	$	-	$	245

28

8. Intangible assets

The following sets forth the carrying amounts and accumulated amortization of the intangible assets at March 31, 2024 and December 31, 2023 (in thousands):

	2024				2023
	Gross		Accumulated		Gross		Accumulated
	Amount		Amortization		Amount		Amortization
Core deposit intangible asset	$	6,411	$	5,069	$	6,411	$	4,982
Customer list		-		-		535		535
Total	$	6,411	$	5,069	$	6,946	$	5,517

The weighted average remaining life of the intangible assets is approximately 2 years as of March 31, 2024 and December 31, 2023.

The following sets forth the activity related to the intangible assets for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended
	March 31,
	2024			2023
Beginning intangible assets, net	$	1,429		$	1,931
Amortization		(87	)		(130	)
Ending intangible assets, net	$	1,342		$	1,801

Estimated remaining amortization expense on intangible assets for the years ending December 31 is as follows (in thousands):

2024		250
2025		301
2026		268
2027		240
2028		190
2029		93
Total	$	1,342

29

9. Pledged Collateral Related to Securities Sold Under Repurchase Agreements

The repurchase agreements mature daily and the following sets forth the pledged collateral at estimated fair value related to securities sold under repurchase agreements as of March 31, 2024 and December 31, 2023 (in thousands):

	2024		2023
Securities sold under agreements to repurchase:
U.S. government treasuries	$	23,808	$	22,877
U.S. government agencies		44,792		44,960
U.S. government mortgage-backed securities		7,590		7,369
Total pledged collateral	$	76,190	$	75,206

In the event the repurchase agreements exceed the estimated fair value of the pledged securities available-for-sale, the Company has unpledged securities available-for-sale that may be pledged on the repurchase agreements.

10. Derivative Financial Instruments

Fair Value Hedges

The Company uses interest rate swaps to convert certain long term fixed rate loans to floating rates to hedge interest rate risk exposure. The Company uses hedge accounting in accordance with ASC 815, with the unrealized gains and losses, representing the change in fair value of the derivative and the change in fair value of the risk being hedged on the related loan, being recorded in the consolidated statements of income. The ineffective portions of the unrealized gains or losses, if any, are recorded in interest income and interest expense in the consolidated statements of income.

During 2023, the Company executed an interest rate swap designated as a fair value hedge with an original notional amount of $25.0 million to convert certain long-term fixed rate 1-4 family loans to floating rates to hedge interest rate risk exposure using the portfolio layer method.

The portfolio layer method allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors that would affect the timing and amount of cash flow. The fair value portfolio level basis adjustment on the hedged loans has not been attributed to the individual loans on the consolidated balance sheet.

The table below identifies the notional amount, fair value and balance sheet category of the Company's interest rate swaps at March 31, 2024, and December 31, 2023 (in thousands):

	Notional Amount		Fair Value			Balance Sheet Category
March 31, 2024
Interest rate swaps	$	8,831	$	1,027		Other assets
Interest rate swaps		25,000		(62	)	Other liabilities
December 31, 2023
Interest rate swaps	$	8,930	$	891		Other assets
Interest rate swaps		25,000		(411	)	Other liabilities

30

The table below identifies the carrying amount of the hedged assets and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets that are designated as a fair value hedge accounting relationship at March 31, 2024, and December 31, 2023 (in thousands):

				Cumulative Amount of Fair Value
	Location in the consolidated	Carrying Amount of		Hedging Adjustment Included in
	balance sheet	the Hedged Assets		Carrying Amount of Hedged Assets
March 31, 2024
Interest rate swaps	Loans receivable, net	$	57,073	$	(965	)
December 31, 2023
Interest rate swaps	Loans receivable, net	$	58,588	$	(481	)

Back-to-Back Loan Swaps

The Company has interest rate swap loan relationships with customers to assist them in managing their interest rate risk. Upon entering into these loan swaps, the Company enters into offsetting positions with counterparties in order to minimize interest rate risk. These back-to-back loan swaps qualify as free standing financial derivatives with the fair values reported in other assets and other liabilities on the consolidated balance sheets. Any gains and losses on these back-to-back swaps are recorded in noninterest income on the consolidated statements of income, and for the three and three months ended March 31, 2024, and March 31, 2023, no gain or loss was recognized. The table below identifies the balance sheet category and fair values of the derivative instruments designated as loan swaps at March 31, 2024, and December 31, 2023 (in thousands):

							Weighted Average			Weighted Average
	Notional Amount		Fair Value			Balance Sheet Category	Receive Rate			Pay Rate
March 31, 2024
Customer interest rate swaps	$	12,373	$	176		Other assets		7.32	%		5.62	%
Customer interest rate swaps		12,373		(176	)	Other liabilities		5.62	%		7.32	%
December 31, 2023
Customer interest rate swaps	$	11,353	$	334		Other assets		7.36	%		5.62	%
Customer interest rate swaps		11,353		(334	)	Other liabilities		5.62	%		7.36	%

The Company was required to pledge $1.5 million and $1.6 million of securities as collateral for these derivative financial instruments at March 31, 2024, and December 31, 2023, respectively. The Company's counterparties were not required to pledge collateral at March 31, 2024 and December 31, 2023.

11. Income Taxes

The tax effects of temporary differences related to income taxes are included in deferred income taxes. The change in deferred income taxes since December 31, 2023 is due primarily to the increase in unrealized losses on investment securities.

31

12. Regulatory Matters

The Company and the Banks are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements (as shown in the following table) can result in certain mandatory and possibly additional discretionary actions by regulators, which, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's and the Banks' capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believed the Company and the Banks met all capital adequacy requirements to which they were subject as of March 31, 2024.

The Company and the Banks’ capital amounts and ratios as of March 31, 2024 and December 31, 2023 are as follows (dollars in thousands):

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of March 31, 2024:
Total capital (to risk-weighted assets):
Consolidated	$	218,220		14.1	%	$	162,803		10.50	%		N/A		N/A
Boone Bank & Trust		16,203		12.8			13,285		10.50			12,652		10.0	%
First National Bank		111,844		14.1			83,450		10.50			79,477		10.0
Iowa State Savings Bank		27,014		16.0			17,674		10.50			16,833		10.0
Reliance State Bank		28,842		12.3			24,697		10.50			23,521		10.0
State Bank & Trust		22,271		16.0			14,603		10.50			13,907		10.0
United Bank & Trust		13,107		15.5			8,877		10.50			8,454		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	200,184		12.9	%	$	131,793		8.50	%		N/A		N/A
Boone Bank & Trust		15,233		12.0			10,754		8.50			10,122		8.0	%
First National Bank		102,355		12.9			67,555		8.50			63,581		8.0
Iowa State Savings Bank		24,930		14.8			14,308		8.50			13,466		8.0
Reliance State Bank		26,076		11.1			19,993		8.50			18,817		8.0
State Bank & Trust		20,627		14.8			11,821		8.50			11,126		8.0
United Bank & Trust		12,050		14.3			7,186		8.50			6,763		8.0
Tier 1 capital (to average-assets):
Consolidated	$	200,184		9.0	%	$	88,970		4.00	%		N/A		N/A
Boone Bank & Trust		15,233		9.3			6,537		4.00			8,171		5.0	%
First National Bank		102,355		8.9			45,931		4.00			57,414		5.0
Iowa State Savings Bank		24,930		9.5			10,511		4.00			13,139		5.0
Reliance State Bank		26,076		8.4			12,344		4.00			15,430		5.0
State Bank & Trust		20,627		9.7			8,463		4.00			10,579		5.0
United Bank & Trust		12,050		9.7			4,951		4.00			6,188		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	200,184		12.9	%	$	108,535		7.00	%		N/A		N/A
Boone Bank & Trust		15,233		12.0			8,857		7.00			8,224		6.5	%
First National Bank		102,355		12.9			55,634		7.00			51,660		6.5
Iowa State Savings Bank		24,930		14.8			11,783		7.00			10,941		6.5
Reliance State Bank		26,076		11.1			16,465		7.00			15,289		6.5
State Bank & Trust		20,627		14.8			9,735		7.00			9,040		6.5
United Bank & Trust		12,050		14.3			5,918		7.00			5,495		6.5

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											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2023:
Total capital (to risk-weighted assets):
Consolidated	$	218,049		14.0	%	$	164,005		10.50	%		N/A		N/A
Boone Bank & Trust		16,232		13.6			12,510		10.50			11,914		10.0	%
First National Bank		112,057		13.9			84,863		10.50			80,822		10.0
Iowa State Savings Bank		26,691		15.7			17,854		10.50			17,004		10.0
Reliance State Bank		28,755		11.9			25,293		10.50			24,089		10.0
State Bank & Trust		22,283		16.0			14,597		10.50			13,902		10.0
United Bank & Trust		12,989		16.1			8,486		10.50			8,082		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	200,187		12.8	%	$	132,766		8.50	%		N/A		N/A
Boone Bank & Trust		15,309		12.8			10,127		8.50			9,532		8.0	%
First National Bank		102,634		12.7			68,699		8.50			64,658		8.0
Iowa State Savings Bank		24,619		14.5			14,453		8.50			13,603		8.0
Reliance State Bank		25,937		10.8			20,476		8.50			19,271		8.0
State Bank & Trust		20,676		14.9			11,817		8.50			11,122		8.0
United Bank & Trust		11,979		14.8			6,870		8.50			6,466		8.0
Tier 1 capital (to average-assets):
Consolidated	$	200,187		9.0	%	$	88,992		4.00	%		N/A		N/A
Boone Bank & Trust		15,309		9.6			6,393		4.00			7,991		5.0	%
First National Bank		102,634		8.8			46,878		4.00			58,597		5.0
Iowa State Savings Bank		24,619		9.6			10,234		4.00			12,792		5.0
Reliance State Bank		25,937		8.3			12,464		4.00			15,580		5.0
State Bank & Trust		20,676		9.6			8,573		4.00			10,717		5.0
United Bank & Trust		11,979		9.5			5,039		4.00			6,299		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	200,187		12.8	%	$	109,337		7.00	%		N/A		N/A
Boone Bank & Trust		15,309		12.8			8,340		7.00			7,744		6.5	%
First National Bank		102,634		12.7			56,576		7.00			52,534		6.5
Iowa State Savings Bank		24,619		14.5			11,903		7.00			11,052		6.5
Reliance State Bank		25,937		10.8			16,862		7.00			15,658		6.5
State Bank & Trust		20,676		14.9			9,731		7.00			9,036		6.5
United Bank & Trust		11,979		14.8			5,657		7.00			5,253		6.5

The Company and the Banks are subject to the rules of the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules included the implementation of a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes for all capital ratios except tier 1 capital to average assets. A banking organization with a capital conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. At March 31, 2024, the capital ratios for the Company and the Banks were sufficient to meet the conservation buffer.

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

Overview

Ames National Corporation (the “Company”) is a bank holding company established in 1975 that owns and operates six bank subsidiaries in central, north-central and south-central Iowa (the “Banks”). The following discussion is provided for the consolidated operations of the Company and its Banks, First National Bank, Ames, Iowa (First National), State Bank & Trust Co. (State Bank), Boone Bank & Trust Co. (Boone Bank), Reliance State Bank (Reliance Bank), United Bank & Trust Co. (United Bank) and Iowa State Savings Bank (Iowa State Bank). The purpose of this discussion is to focus on significant factors affecting the Company's financial condition and results of operations.

The Company does not engage in any material business activities apart from its ownership of the Banks. Products and services offered by the Banks are for commercial and consumer purposes including loans, deposits and wealth management services. Wealth management services includes financial planning and managing trust, agencies, estates and investment brokerage accounts. The Company employs twenty-four individuals to assist the Banks with its financial reporting, human resources, audit, compliance, marketing, technology systems, training, real estate valuation services and the coordination of management activities, in addition to 242 full-time equivalent individuals employed by the Banks.

The Company’s primary competitive strategy is to utilize seasoned and competent Bank management and local decision making authority to provide customers with faster response times and more flexibility in the products and services offered. This strategy is viewed as providing an opportunity to increase revenues through creating a competitive advantage over other financial institutions. The Company also strives to remain operationally efficient to provide better profitability while enabling the Company to offer more competitive loan and deposit rates.

The principal sources of Company revenues and cash flow are: (i) interest and fees earned on loans made by the Company and Banks; (ii) interest on fixed income investments held by the Banks; (iii) fees on wealth management services provided by those Banks exercising trust powers; (iv) service fees on deposit accounts maintained at the Banks; (v) gain on sale of loans; and (vi) merchant and card fees. The Company’s principal expenses are: (i) interest expense on deposit accounts and other borrowings; (ii) credit loss expense; (iii) salaries and employee benefits; (iv) data processing costs associated with maintaining the Banks’ loan and deposit functions; (v) occupancy expenses for maintaining the Banks’ facilities; and (vi) professional fees. The largest component contributing to the Company’s net income is net interest income, which is the difference between interest earned on earning assets (primarily loans and investments) and interest paid on interest-bearing liabilities (primarily deposits and other borrowings). One of management’s principal functions is to manage the spread between interest earned on earning assets and interest paid on interest bearing liabilities in an effort to maximize net interest income while maintaining an appropriate level of interest rate risk.

The Company had net income of $2.3 million, or $0.26 per share, for the three months ended March 31, 2024, compared to net income of $3.2 million, or $0.36 per share, for the three months ended March 31, 2023. The decrease in earnings is primarily the result of higher interest expense on deposits and other borrowed funds, offset in part by an increase in interest income on loans. The higher interest expense on deposits is due to an increase in market rates and customers seeking higher interest rate options. The increase in interest income on loans was primarily due to higher rates and growth in the loan portfolio.

Net loan recoveries totaled $4 thousand for the three months ended March 31, 2024 compared to net loan charge-offs of $158 thousand for the three months ended March 31, 2023. A credit loss expense of $169 thousand was recognized for the three months ended March 31, 2024 as compared to a credit loss expense of $275 thousand for the three months ended March 31, 2023.

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The following management discussion and analysis will provide a review of important items relating to:

● Challenges, Risks and Uncertainties

● Critical Accounting Policies

● Non-GAAP Financial Measures

● Income Statement Review

● Balance Sheet Review

● Asset Quality Review and Credit Risk Management

● Liquidity and Capital Resources

● Forward-Looking Statements and Business Risks

Challenges, Risks and Uncertainties

Management has identified certain events or circumstances that may negatively impact the Company’s financial condition and results of operations in the future and is attempting to position the Company to best respond to those challenges. These challenges are addressed in the Company’s most recent Annual Report on Form 10-K filed on March 8, 2024.

Critical Accounting Policies

The discussion and analysis of the Company's financial condition and results of operations are based upon the Company's consolidated financial statements that have been prepared in accordance with GAAP. The preparation of the Company's financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, income and expenses. These estimates are based upon historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The estimates and judgments that management believes involve the most complex and subjective estimates and judgments and have the most effect on the Company's reported financial position and results of operations are described as critical accounting policies in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 8, 2024. There have been no significant changes in the critical accounting policies or the assumptions and judgments utilized in applying these policies since December 31, 2023.

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Non-GAAP Financial Measures

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis. Management believes these non-GAAP financial measures are widely used in the financial institutions industry and provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on an FTE basis to GAAP (dollars in thousands).

	Three Months Ended March 31,
	2024			2023
Reconciliation of net interest income and annualized net interest margin on an FTE basis to GAAP:
Net interest income (GAAP)	$	10,906		$	11,669
Tax-equivalent adjustment (1)		142			163
Net interest income on an FTE basis (non-GAAP)		11,048			11,832
Average interest-earning assets	$	2,072,069		$	2,042,214
Net interest margin on an FTE basis (non-GAAP)		2.13	%		2.32	%

(1) Computed on a tax-equivalent basis using an incremental federal income tax rate of 21 percent, adjusted to reflect the effect of the tax-exempt interest income associated with owning tax-exempt securities and loans.

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Income Statement Review for the Three Months ended March 31, 2024 and 2023

The following highlights a comparative discussion of the major components of net income and their impact for the three months ended March 31, 2024 and 2023:

AVERAGE BALANCES AND INTEREST RATES

The following two tables are used to calculate the Company’s non-GAAP net interest margin on an FTE basis. The first table includes the Company’s average assets and the related income to determine the average yield on earning assets. The second table includes the average liabilities and related expense to determine the average rate paid on interest-bearing liabilities. The net interest margin is equal to interest income less interest expense divided by average earning assets. Refer to the net interest income discussion following the tables for additional detail.

AVERAGE BALANCE SHEETS AND INTEREST RATES
	Three Months Ended March 31,
	2024							2023
	Average		Revenue/		Yield/			Average		Revenue/		Yield/
	balance		expense		rate			balance		expense		rate
ASSETS
(dollars in thousands)
Interest-earning assets
Loans (1)
Commercial	$	88,061	$	1,337		6.07	%	$	76,671	$	974		5.08	%
Agricultural		115,362		2,125		7.37	%		90,223		1,382		6.13	%
Real estate		1,065,387		12,166		4.57	%		1,037,501		10,542		4.06	%
Consumer and other		16,126		194		4.81	%		16,179		173		4.28	%
Total loans (including fees)		1,284,936		15,822		4.93	%		1,220,574		13,071		4.28	%
Investment securities
Taxable		630,864		3,092		1.96	%		669,962		3,216		1.92	%
Tax-exempt (2)		101,069		677		2.68	%		121,099		777		2.57	%
Total investment securities		731,933		3,769		2.06	%		791,061		3,993		2.02	%
Interest-bearing deposits with banks and federal funds sold		55,200		662		4.80	%		30,579		295		3.86	%
Total interest-earning assets		2,072,069	$	20,253		3.91	%		2,042,214	$	17,359		3.40	%
Noninterest-earning assets		75,561							78,991
TOTAL ASSETS	$	2,147,630						$	2,121,205

(1) Average loan balances include nonaccrual loans, if any. Interest income collected on nonaccrual loans has been included.

(2) Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental tax rate of 21%.

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AVERAGE BALANCE SHEETS AND INTEREST RATES
	Three Months Ended March 31,
	2024							2023
	Average		Revenue/		Yield/			Average		Revenue/		Yield/
	balance		expense		rate			balance		expense		rate
LIABILITIES AND STOCKHOLDERS' EQUITY
(dollars in thousands)
Interest-bearing liabilities
Deposits
Interest-bearing checking, savings accounts and money markets	$	1,175,901	$	4,736		1.61	%	$	1,259,286	$	3,523		1.12	%
Time deposits		291,159		2,853		3.92	%		231,693		1,192		2.06	%
Total deposits		1,467,060		7,589		2.07	%		1,490,979		4,715		1.26	%
Other borrowed funds		156,312		1,616		4.14	%		85,119		812		3.82	%
Total interest-bearing liabilities		1,623,372		9,205		2.27	%		1,576,098		5,527		1.40	%
Noninterest-bearing liabilities
Noninterest-bearing checking		346,615							382,312
Other liabilities		13,204							9,847
Stockholders' equity		164,439							152,948
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,147,630						$	2,121,205
Net interest income (FTE)(3)			$	11,048						$	11,832
Net interest spread (FTE)						1.64	%						2.00	%
Net interest margin (FTE)(3)						2.13	%						2.32	%

(3) Net interest income (FTE) is a non-GAAP financial measure. For further information, refer to the Non-GAAP Financial Measures section of this report.

Net Interest Income

For the three months ended March 31, 2024 and 2023, the Company's net interest margin adjusted for tax exempt income was 2.13% and 2.32%, respectively. Net interest income, prior to the adjustment for tax-exempt income, for the three months ended March 31, 2024 totaled $10.9 million compared to $11.7 million for the three months ended March 31, 2023.

For the three months ended March 31, 2024, interest income increased $2.9 million, or 17%, when compared to the same period in 2023. The increase is primarily due to higher average rates and growth in the loan portfolio.

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Interest expense increased $3.7 million, or 67%, for the three months ended March 31, 2024 when compared to the same period in 2023. The higher interest expense for the period is primarily due to an increase in market interest rates and customers shifting to higher rate deposit products.

Credit Loss Expense

A credit loss expense of $169 thousand was recognized for the three months ended March 31, 2024 as compared to a credit loss expense of $275 thousand for the three months ended March 31, 2023. Net loan recoveries totaled $4 thousand for the three months ended March 31, 2024 compared to net loan charge-offs of $158 thousand for the three months ended March 31, 2023. The credit loss expense in 2024 was primarily due to an increase in the risks associated with the softening of commercial real estate collateral. The credit loss expense in 2023 was primarily due to a charge-off in the agriculture loan portfolio.

Noninterest Income and Expense

Noninterest income for the three months ended March 31, 2024 totaled $2.2 million compared to $2.3 million for the three months ended March 31, 2023, a decrease of 3%. The decrease is primarily due to losses on the sale of securities. The Company used the $2.0 million of proceeds from the sale of securities to reduce outstanding borrowings.

Noninterest expense for the three months ended March 31, 2024 totaled $10.2 million compared to $9.8 million recorded for the three months ended March 31, 2023, an increase of 4%. The increase is primarily due to higher FDIC assessments and normal increases in salaries and benefits. The efficiency ratio was 77.9% for the first quarter of 2024 as compared to 70.2% in the first quarter of 2023.

Income Taxes

Income tax expense for the three months ended March 31, 2024 totaled $416 thousand compared to $671 thousand recorded for the three months ended March 31, 2023. The effective tax rate was 15% and 17% for the three months ended March 31, 2024 and 2023, respectively. The lower than expected tax rate in 2024 and 2023 was due primarily to tax-exempt interest income and New Markets Tax Credits.

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Balance Sheet Review

As of March 31, 2024, total assets were $2.19 billion, a $36.4 million increase compared to December 31, 2023. This increase in assets is primarily due to an increase in interest-bearing deposits in financial institutions and federal funds sold, funded by an increase in deposits.

Investment Portfolio

The investment portfolio totaled $723.2 million as of March 31, 2024, a decrease of $13.2 million from the December 31, 2023 balance of $736.4 million. The decrease in securities available-for-sale is primarily due to maturities of investments.

On a quarterly basis, the investment portfolio is reviewed for credit losses. As of March 31, 2024, gross unrealized losses of $62.5 million, are due to the interest rate environment and are not considered credit-related. Certain bonds in the investment portfolio may incur credit losses and could negatively affect the Company’s net income. As a result of the Company’s favorable liquidity position, the Company does not have the intent to sell securities with an unrealized loss at the present time. In addition, management believes it is more likely than not that the Company will hold these securities until recovery of their fair value to cost basis and expects full principal and interest to be collected. Therefore, the Company does not have an allowance for credit losses on these investments as of March 31, 2024.

At March 31, 2024, the Company’s investment securities portfolio included securities issued by 268 government municipalities and agencies located within 30 states with a fair value of $262.9 million. At December 31, 2023, the Company’s investment securities portfolio included securities issued by 272 government municipalities and agencies located within 30 states with a fair value of $269.9 million. No one municipality or agency represents a concentration within this segment of the investment portfolio. Storm Lake, Iowa, general obligation bonds with a fair value of $5.5 million (approximately 2.1% of the fair value of the government municipalities and agencies) represent the largest exposure to any one municipality or agency for the Company as of March 31, 2024.

The Company’s procedures for evaluating investments in states, municipalities and political subdivisions include but are not limited to reviewing the offering statement and the most current available financial information, comparing yields to yields of bonds of similar credit quality, confirming capacity to repay, assessing operating and financial performance, evaluating the stability of tax revenues, considering debt profiles and local demographics, and for revenue bonds, assessing the source and strength of revenue structures for municipal authorities. These procedures, as applicable, are utilized for all municipal purchases and are utilized in whole or in part for monitoring the portfolio of municipal holdings. The Company does not utilize third party credit rating agencies as a primary component of determining if the municipal issuer has an adequate capacity to meet the financial commitments under the security for the projected life of the investment, and, therefore, does not compare internal assessments to those of the credit rating agencies. Credit rating downgrades are utilized as an additional indicator of credit weakness and as a reference point for historical default rates.

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The following table summarizes the total general obligation and revenue bonds in the Company’s investment securities portfolios as of March 31, 2024 and December 31, 2023 identifying the state in which the issuing government municipality or agency operates (in thousands):

	2024				2023
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Obligations of states and political subdivisions:
General Obligation bonds:
Iowa	$	59,693	$	56,073	$	59,721	$	55,827
Texas		26,951		24,590		29,199		26,721
Nebraska		19,658		17,164		19,660		17,202
Oregon		9,868		9,270		9,885		9,299
Washington		9,415		8,638		9,632		8,860
Connecticut		8,699		8,129		8,700		8,183
Other (2024: 15 states; 2023: 15 states)		29,531		27,078		32,698		30,257
Total general obligation bonds	$	163,815	$	150,942	$	169,495	$	156,349
Revenue bonds:
Iowa	$	47,701	$	44,945	$	48,645	$	45,953
Texas		14,786		13,157		14,794		13,193
Nebraska		9,397		8,231		9,397		8,238
Other (2024: 23 states; 2023: 23 states)		49,711		45,580		50,144		46,158
Total revenue bonds	$	121,595	$	111,913	$	122,980	$	113,542
Total obligations of states and political subdivisions	$	285,410	$	262,855	$	292,475	$	269,891

As of March 31, 2024 and December 31, 2023, the revenue bonds in the Company’s investment securities portfolios were issued by government municipalities and agencies to fund public services such as community school facilities, college and university dormitory facilities, water utilities and electrical utilities. The revenue bonds are to be paid from 5 primary revenue sources. The revenue sources that represent 5% or more, individually, as a percent of the total revenue bonds are summarized in the following table (in thousands):

	2024				2023
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Revenue bonds by revenue source
Sales tax	$	28,493	$	26,325	$	29,409	$	27,284
Water		20,369		18,823		20,394		18,968
College and universities, primarily dormitory revenues		16,866		15,227		16,944		15,340
Sewer		12,764		11,466		12,771		11,465
Leases		8,074		7,412		8,060		7,421
Other		35,029		32,660		35,402		33,064
Total revenue bonds by revenue source	$	121,595	$	111,913	$	122,980	$	113,542

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Loan Portfolio

The loan portfolio, net of the allowance for credit losses, totaled $1.273 billion and $1.278 billion as of March 31, 2024 and December 31, 2023, respectively. The decrease was primarily due to a decrease in commercial real estate loan demand.

Deposits

Deposits totaled $1.87 billion and $1.81 billion as of March 31, 2024 and December 31, 2023, respectively. The increase is primarily due to an increase in public funds and time deposits as customers moved to higher yielding accounts. Estimated uninsured deposits were approximately $637 million as of March 31, 2024. Approximately $153 million of estimated uninsured deposits were collateralized by pledged assets. Deposit balances fluctuate as customers’ liquidity needs vary at any given time and could be impacted by prevailing market interest rates, competition, and economic conditions.

Other Borrowings

Other borrowings decreased to $90.3 million as of March 31, 2024 compared to $110.6 million as of December 31, 2023. The decrease in other borrowings is primarily due to an increase in deposits. Bank Term Financing Program (BTFP) borrowings of $75 million matured during the first quarter of 2024 with an interest rate of 4.37%. The Company replaced $72 million of this borrowing with $30 million from the FHLB at a weighted average interest rate of 5.15% and $42 million from the BTFP at an interest rate of 5.40%. The Company plans to reduce borrowings throughout 2024 as investments mature.

Off-Balance Sheet Arrangements

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. No material changes in the Company’s off-balance sheet arrangements have occurred since December 31, 2023.

Asset Quality Review and Credit Risk Management

The Company’s credit risk is historically centered in the loan portfolio, which totaled $1.273 billion and $1.278 billion as of March 31, 2024 and December 31, 2023, respectively. Net loans comprise 58% of total assets as of March 31, 2024. The objective in managing loan portfolio risk is to reduce the risk of loss resulting from a customer’s failure to perform according to the terms of an agreement and to quantify and manage credit risk on a portfolio basis. The Company’s level of problem loans (consisting of nonaccrual loans and loans past due 90 days or more) as a percentage of total loans was 1.03% at March 31, 2024, as compared to 1.08% at December 31, 2023. The Company’s level of problem loans as a percentage of total loans at March 31, 2024 of 1.03% is higher as compared to the Iowa State Average peer group of FDIC insured institutions as of December 31, 2023, of 0.39%, most recent available.

Substandard-Impaired loans totaled $12.6 million as of March 31, 2024 and have decreased $0.6 million as compared to the impaired loans of $13.2 million as of December 31, 2023. The decrease is primarily due to payments received during the year.

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A loan is considered Substandard-Impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payment of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company applies its normal loan review procedures to identify loans that should be evaluated for impairment.

Loans past due 90 days or more that are still accruing interest are reviewed no less frequently than quarterly to determine if there continues to be a strong reason that the credit should not be placed on nonaccrual. As of March 31, 2024, nonaccrual loans totaled $13.2 million and there were $110 thousand of loans past due 90 days and still accruing. This compares to nonaccrual loans of $13.8 million and $109 thousand of loans past due 90 days and still accruing as of December 31, 2023. There was no other real estate owned as of March 31, 2024 and December 31, 2023.

The watch and special mention loans classified as agricultural real estate and operating totaled $29.7 million as of March 31, 2024 as compared to $19.9 million as of December 31, 2023. The increase is primarily due to agricultural operating loans that were moved to watch as the customers refinance and restructure assets. The substandard and impaired loans in these categories totaled $6.5 million and $6.2 million as of March 31, 2024 and December 31, 2023, respectively.

The watch and special mention loans classified as commercial real estate totaled $66.3 million as of March 31, 2024 as compared to $73.3 million as of December 31, 2023. The substandard and impaired commercial real estate loans totaled $20.3 million and $15.4 million as of March 31, 2024 and December 31, 2023, respectively. The changes between periods are primarily due to a non-owner occupied commercial real estate loan with a lease expiration. Regarding the commercial real estate portfolio, the Company’s outstanding loans to finance non-owner occupied commercial office properties is approximately 3% of total loans outstanding as of March 31, 2024.

The allowance for credit losses as a percentage of outstanding loans as of March 31, 2024 was 1.31%, as compared to 1.30% at December 31, 2023. The allowance for credit losses totaled $17.0 million and $16.8 million as of March 31, 2024 and December 31, 2023, respectively. The increase in the allowance for credit losses is mainly due to an increased collateral value risk factor associated with the commercial real estate portfolio.

Liquidity and Capital Resources

Liquidity management is the process by which the Company, through its Banks’ Asset and Liability Committees (ALCO), ensures that adequate liquid funds are available to meet its financial commitments on a timely basis, at a reasonable cost and within acceptable risk tolerances. These commitments include funding credit obligations to borrowers, funding of mortgage originations pending delivery to the secondary market, withdrawals by depositors, maintaining adequate collateral for pledging for public funds, trust deposits and borrowings, paying dividends to shareholders, payment of operating expenses, funding capital expenditures and maintaining deposit reserve requirements.

Liquidity is derived primarily from core deposit growth and retention; principal and interest payments on loans; principal and interest payments, sale, maturity and prepayment of securities available-for-sale; net cash provided from operations; and access to other funding sources. Other funding sources include federal funds purchased lines, Federal Reserve BTFP, FHLB advances and other capital market sources.

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As of March 31, 2024, the level of liquidity and capital resources of the Company remain at a satisfactory level. Management believes that the Company’s liquidity sources will be sufficient to support its existing operations for the foreseeable future.

The liquidity and capital resources discussion will cover the following topics:

● Review of the Company’s Current Liquidity Sources

● Review of Statements of Cash Flows

● Company Only Cash Flows

● Review of Commitments for Capital Expenditures, Cash Flow Uncertainties and Known Trends in Liquidity and Cash Flows Needs

● Capital Resources

Review of the Company’s Current Liquidity Sources

Liquid assets of cash on hand, balances due from other banks and interest-bearing deposits in financial institutions as of March 31, 2024 and December 31, 2023 totaled $111.4 million and $55.1 million, respectively, and management believes these sources provide an adequate level of liquidity given current economic conditions.

Other sources of liquidity available to the Banks as of March 31, 2024 include outstanding lines of credit with the FHLB of Des Moines, Iowa of $260.8 million, with $37.0 million of outstanding FHLB advances. Federal funds borrowing capacity at correspondent banks was $102.6 million, with no outstanding federal fund purchase balances as of March 31, 2024. The Company had securities sold under agreements to repurchase totaling $53.0 million as of March 31, 2024.

Total investments as of March 31, 2024 were $723.2 million compared to $736.4 million as of December 31, 2023. These investments provide the Company with liquidity since all of the investments are classified as available-for-sale as of March 31, 2024. The Company has $342.6 million of unpledged securities available-for-sale and interest-bearing deposits as of March 31, 2024. The investment portfolio serves an important role in the overall context of balance sheet management in terms of balancing capital utilization and liquidity. The decision to purchase or sell securities is based upon the current assessment of economic and financial conditions, including the interest rate environment, liquidity and credit considerations. The portfolio’s scheduled maturities and payments represent a significant source of liquidity.

Review of the Consolidated Statements of Cash Flows

Net cash provided by operating activities for the three months ended March 31, 2024 totaled $1.4 million compared to $6.5 million for the three months ended March 31, 2023. The decrease of $5.1 million in cash provided by operating activities was primarily due to payments of accrued interest on borrowings.

Net cash provided by investing activities for the three months ended March 31, 2024 was $18.3 million compared to $11.4 million for the three months ended March 31, 2023. The increase of $6.9 million in cash provided by investing activities was primarily due to maturities of securities available-for-sale and a decrease in loans.

Net cash provided by financing activities for the three months ended March 31, 2024 totaled $36.6 million compared to $41.4 million for the three months ended March 31, 2023. The decrease in cash provided by financing activities of $4.8 million was primarily due to fewer proceeds from other borrowings between periods and partially offset by an increase in deposits. As of March 31, 2024, the Company did not have any external debt financing, off-balance sheet financing arrangements, or derivative instruments linked to its stock.

44

Review of Company Only Cash Flows

The Company’s liquidity on an unconsolidated basis is heavily dependent upon dividends paid to the Company by the Banks. The Banks provide adequate liquidity to pay the Company’s expenses and stockholder dividends. Dividends paid by the Banks to the Company amounted to $2.6 million and $2.3 million for the three months ended March 31, 2024 and 2023, respectively. Various federal and state statutory provisions limit the amounts of dividends banking subsidiaries are permitted to pay to their holding companies without regulatory approval. Federal Reserve policy further limits the circumstances under which bank holding companies may declare dividends. For example, a bank holding company should not continue its existing rate of cash dividends on its common stock unless its net income is sufficient to fully fund each dividend and its prospective rate of earnings retention appears consistent with its capital needs, asset quality and overall financial condition. In addition, the Federal Reserve and the FDIC have issued policy statements, which provide that insured banks and bank holding companies should generally pay dividends only out of current operating earnings. Federal and state banking regulators may also restrict the payment of dividends by order.

The Company, on an unconsolidated basis, has interest-bearing deposits totaling $0.9 million as of March 31, 2024.

Review of Commitments for Capital Expenditures, Cash Flow Uncertainties and Known Trends in Liquidity and Cash Flows Needs

No other material capital expenditures or material changes in the capital resource mix are anticipated at this time. The primary cash flow uncertainty would be a sudden decline in deposits causing the Banks to liquidate securities. Historically, the Banks have maintained an adequate level of short-term marketable investments to fund the temporary declines in deposit balances. There are no known trends in liquidity and cash flow needs as of March 31, 2024 that are of concern to management.

Capital Resources

The Company’s total stockholders’ equity as of March 31, 2024 totaled $165.5 million and was $0.3 million less than the $165.8 million recorded as of December 31, 2023. The decrease in stockholders’ equity was primarily the result of an increase in unrealized losses on the investment portfolio. At March 31, 2024 and December 31, 2023, stockholders’ equity as a percentage of total assets was 7.6% and 7.7%, respectively. The capital levels of the Company currently exceed applicable regulatory guidelines to be considered “well capitalized” as of March 31, 2024. Unrealized losses on the investment portfolio are excluded from regulatory capital.

45

Forward-Looking Statements and Business Risks

The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this Quarterly Report, including forward-looking statements concerning the Company’s financial performance and asset quality.  Forward-looking statements contained in this Quarterly Report are not historical facts and are based on management’s current beliefs, assumptions, predictions and expectations of future events, including the Company’s future performance, taking into account all information currently available to management.  These beliefs, assumptions, predictions and expectations are subject to numerous risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to management and many of which are beyond management’s control.  If a change occurs, the Company’s business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements.  Accordingly, investors are cautioned not to place undue reliance on such forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “forecasts”, “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. The risks and uncertainties that may affect the Company’s future performance and asset quality include, but are not limited to, the following:  the impact of inflation and rising interest rates on national, regional and local economies in general and on the Company’s customers in particular; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for credit losses resulting from new market conditions or regulatory requirements; fiscal and monetary policies of the U.S. government; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; and other risks and uncertainties inherent in the Company’s business, including those discussed under the headings Forward-Looking Statements and Business Risks” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year-ended December 31, 2023.  Any forward-looking statements are qualified in their entirety by the foregoing risks and uncertainties and speak only as of the date on which such statements are made. The Company undertakes no obligation to revise or update such forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

46

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable

Item 4. Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended). Based on that evaluation, the Company’s management, including the Principal Executive Officer and Principal 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 Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

There was no change in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Not applicable

Item 1.A. Risk Factors

Management does not believe there have been any material changes in the risk factors that were disclosed in the Company's Form 10-K filed with the SEC on March 8, 2024.

47

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

In November, 2023, the Company approved a Stock Repurchase Plan which provided for the repurchase of up to 100,000 shares of the Company’s common stock. As of March 31, 2024, there were 100,000 shares remaining to be purchased under the plan.

The following table provides information with respect to purchases made by or on behalf of the Company or any “affiliated purchases” (as defined in rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of the Company’s common stock during the three months ended March 31, 2024.

					Total
					Number		Maximum
					of Shares		Number of
					Purchased as		Shares that
	Total				Part of		May Yet Be
	Number		Average		Publicly		Purchased
	of Shares		Price Paid		Announced		Under
Period	Purchased		Per Share		Plans		The Plan
January 1, 2024 to January 31, 2024		-	$	-		-		100,000
February 1, 2024 to February 29, 2024		-	$	-		-		100,000
March 1, 2024 to March 31, 2024		-	$	-		-		100,000
Total		-				-

Item 3. Defaults Upon Senior Securities

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other information

Not applicable

48

Item 6. Exhibits

31.1	Certification of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350.
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350.
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 (1)
101.SCH	Inline XBRL Taxonomy Extension Schema Document (1)
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (1)
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (1)
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (1)
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (1)
104	Cover page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101.1)

(1)         These interactive date files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

49

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.

	AMES NATIONAL CORPORATION
DATE:         May 8, 2024	By:  /s/ John P. Nelson
	John P. Nelson, Chief Executive Officer and President
	(Principal Executive Officer)
	By:  /s/ John L. Pierschbacher
	John L. Pierschbacher, Chief Financial Officer
	(Principal Financial and Accounting Officer)

50

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John P. Nelson, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Ames National Corporation;

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: May 8, 2024	By: /s/ John P. Nelson
	John P. Nelson, Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John L. Pierschbacher, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Ames National Corporation;

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: May 8, 2024	By: /s/ John L. Pierschbacher
	John L. Pierschbacher, Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (the “Report”) by Ames National Corporation (the “Company”), the undersigned officer of the Company hereby certifies that:

1.         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.         The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

IN WITNESS WHEREOF, the undersigned has executed this Certification as of the 8th day of May, 2024.

By: /s/ John P. Nelson

John P. Nelson, Chief Executive Officer and President

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (the “Report”) by Ames National Corporation (the “Company”), the undersigned officer of the Company hereby certifies that:

1.         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.         The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

IN WITNESS WHEREOF, the undersigned has executed this Certification as of the 8th day of May, 2024.

By: /s/ John L. Pierschbacher

John L. Pierschbacher, Chief Financial Officer

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	0-32637
Entity Registrant Name	AMES NATIONAL CORPORATION
Entity Incorporation, State or Country Code	IA
Entity Tax Identification Number	42-1039071
Entity Address, Address Line One	405 Fifth Street
Entity Address, City or Town	Ames
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	50010
City Area Code	515
Local Phone Number	232-6251
Title of 12(b) Security	Common stock
Trading Symbol	ATLO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		8,992,167
Entity Central Index Key	0001132651
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 18,362	$ 24,105
Interest-bearing deposits in financial institutions and federal funds sold	93,040	30,996
Total cash and cash equivalents	111,402	55,101
Interest-bearing time deposits	7,660	8,904
Securities available-for-sale	723,205	736,389
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost	3,593	3,086
Loans receivable, net	1,272,580	1,277,812
Loans held for sale	739	124
Bank premises and equipment, net	22,289	22,549
Accrued income receivable	12,246	12,953
Bank-owned life insurance	3,151	3,131
Deferred income taxes, net	16,568	16,496
Other intangible assets, net	1,342	1,429
Goodwill	12,424	12,424
Other assets	4,643	5,083
Total assets	2,191,842	2,155,481
LIABILITIES
Noninterest-bearing checking	354,082	370,942
Interest-bearing checking	645,400	611,891
Savings and money market	570,398	552,275
Time, $250 and over	77,276	67,733
Other time	224,967	208,990
Total deposits	1,872,123	1,811,831
Securities sold under agreements to repurchase	53,037	53,994
Other borrowings	90,284	110,588
Dividends payable	2,428	2,428
Accrued interest payable	2,571	4,710
Accrued expenses and other liabilities	5,859	6,142
Total liabilities	2,026,302	1,989,693
STOCKHOLDERS' EQUITY
Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 8,992,167 shares as of March 31, 2024 and December 31, 2023	17,984	17,984
Additional paid-in capital	14,253	14,253
Retained earnings	180,316	180,438
Accumulated other comprehensive (loss)	(47,013)	(46,887)
Total stockholders' equity	165,540	165,788
Total liabilities and stockholders' equity	$ 2,191,842	$ 2,155,481

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Common stock, par value (in dollars per share)	$ 2	$ 2
Common stock, authorized (in shares)	18,000,000	18,000,000
Common Stock, Shares, Issued (in shares)	8,992,167	8,992,167
Common Stock, Outstanding (in shares)	8,992,167	8,992,167

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest and dividend income:
Loans, including fees	$ 15,822	$ 13,071
Securities:
Taxable	3,092	3,216
Tax-exempt	535	614
Other interest and dividend income	662	295
Total interest and dividend income	20,111	17,196
Interest expense:
Deposits	7,589	4,715
Other borrowed funds	1,616	812
Total interest expense	9,205	5,527
Net interest income	10,906	11,669
Credit loss expense	169	275
Net interest income after credit loss expense (benefit)	10,737	11,394
Noninterest income:
Securities (losses), net	(165)	0
Gain on sale of loans held for sale	83	50
Other noninterest income	380	302
Total noninterest income	2,177	2,254
Noninterest expense:
Salaries and employee benefits	6,237	5,970
Data processing	1,435	1,321
Occupancy expenses, net	777	810
FDIC insurance assessments	301	170
Professional fees	460	460
Business development	380	359
Intangible asset amortization	87	130
New market tax credit projects amortization	174	192
Other operating expenses, net	343	368
Total noninterest expense	10,194	9,780
Income before income taxes	2,720	3,868
Provision for income taxes	416	671
Net income	$ 2,304	$ 3,197
Basic and diluted earnings per share (in dollars per share)	$ 0.26	$ 0.36
Dividends declared per share (in dollars per share)	$ 0.27	$ 0.27
Fiduciary and Trust [Member]
Noninterest income:
Noninterest income	$ 1,195	$ 1,165
Financial Service [Member]
Noninterest income:
Noninterest income	322	323
Credit and Debit Card [Member]
Noninterest income:
Noninterest income	$ 362	$ 414

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net income	$ 2,304	$ 3,197
Unrealized holding gains (losses) arising during the period	(327)	12,885
Plus: reclassification adjustment for losses realized in net income	165	0
Other comprehensive income (loss), before tax	(162)	12,885
Tax benefit (expense) related to other comprehensive income (loss)	38	(3,067)
Other income tax effects from tax reform	2	(0)
Other comprehensive income (loss), net of tax	(126)	9,818
Comprehensive income	$ 2,178	$ 13,015

XML

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member]	Additional Paid-in Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	AOCI Attributable to Parent [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Total
Balance (in shares) at Dec. 31, 2022		8,992,167
Balance at Dec. 31, 2022	$ 0	$ 17,984	$ 0	$ 14,253	$ (603)	$ 179,931	$ 0	$ (63,070)	$ (603)	$ 149,098
Net income		0		0		3,197		0		3,197
Other comprehensive (loss)		0		0		0		9,818		9,818
Cash dividends declared		$ 0		0		(2,428)		0		(2,428)
Other income tax effects from tax reform										(0)
Balance (in shares) at Mar. 31, 2023		8,992,167
Balance at Mar. 31, 2023		$ 17,984		14,253		180,097		(53,252)		$ 159,082
Balance (in shares) at Dec. 31, 2023		8,992,167								8,992,167
Balance at Dec. 31, 2023		$ 17,984		14,253		180,438		(46,887)		$ 165,788
Net income		0		0		2,304		0		2,304
Other comprehensive (loss)		0		0		0		(126)		(126)
Cash dividends declared		0		0		(2,428)		0		(2,428)
Other income tax effects from tax reform		$ 0		0		2		0		$ 2
Balance (in shares) at Mar. 31, 2024		8,992,167								8,992,167
Balance at Mar. 31, 2024		$ 17,984		$ 14,253		$ 180,316		$ (47,013)		$ 165,540

XML

Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares		3 Months Ended
	Feb. 14, 2024	Mar. 31, 2024	Mar. 31, 2023
Dividends declared per share (in dollars per share)	$ 0.27	$ 0.27	$ 0.27

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024		Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 2,304		$ 3,197
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense for loans	172	[1]	212	[2]
Credit loss expense (benefit) for off-balance sheet credit exposures	(3)		63
Amortization of securities available-for-sale and loans, net	260		391
Amortization of intangible assets	87		130
Depreciation	326		290
Provision for deferred income taxes	(34)		2
Securities losses, net	165		0
Increase in cash value of bank-owned life insurance	(20)		(19)
Gain on sales of loans held for sale	(83)		(50)
Proceeds from loans held for sale	3,309		2,176
Originations of loans held for sale	(3,841)		(2,285)
Amortization of investment in New Markets Tax Credit projects	174		192
Change in assets and liabilities:
(Increase) in accrued income receivable	707		681
Decrease in other assets	264		629
Increase (decrease) in accrued interest payable	(2,139)		436
Increase (decrease) in accrued expenses and other liabilities	(280)		450
Net cash provided by operating activities	1,368		6,495
CASH FLOWS FROM INVESTING ACTIVITIES
Change in interest-bearing time deposits	1,244		746
Purchase of securities available-for-sale	(8,650)		(3,744)
Proceeds from sale of securities available-for-sale	2,049		0
Proceeds from maturities and calls of securities available-for-sale	19,157		13,698
Purchase of FHLB stock	(3,309)		(8,009)
Proceeds from the redemption of FHLB and FRB stock	2,802		9,294
Net decrease in loans	5,101		1,018
Purchase of premises and equipment	(64)		(1,560)
Net cash provided by investing activities	18,330		11,443
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in deposits	60,292		(1,164)
Increase in securities sold under agreements to repurchase	(957)		5,526
Payments on other borrowings	(91,304)		(75,150)
Proceeds from other borrowings	88,000		150,000
Net (payments on) FHLB short-term borrowings	(17,000)		(35,420)
Dividends paid	(2,428)		(2,428)
Net cash provided by financing activities	36,603		41,364
Net increase in cash and cash equivalents	56,301		59,302
CASH AND CASH EQUIVALENTS
Beginning	55,101		27,884
Ending	111,402		87,186
Cash payments for:
Interest	11,344		5,512
Income taxes	0		0
Dividends declared, not paid	$ 2,428		$ 2,428

[1] The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $3 thousand related to off-balance sheet credit exposures.

[2] The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense of $63 thousand related to off-balance sheet credit exposures.

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Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Significant Accounting Policies [Text Block]

1. Significant Accounting Policies

The accompanying unaudited consolidated financial statements have been prepared by Ames National Corporation (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these interim financial statements be read in conjunction with the year-end audited financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). The consolidated balance sheet of the Company as of December 31, 2023 has been derived from the audited consolidated balance sheet of the Company as of that date. In the opinion of management, the accompanying consolidated financial statements of the Company contain all adjustments necessary to fairly present the financial results for the interim periods reported. Those adjustments consist only of normal recurring adjustments. The results of operations for the interim periods are not necessarily indicative of results which may be expected for an entire year. The consolidated financial statements include the accounts of the Company and its wholly-owned banking subsidiaries (the “Banks”). All significant intercompany balances and transactions have been eliminated in consolidation.

Subsequent Events: The Company has evaluated subsequent events through the filing date of this Quarterly Report on Form 10-Q with the SEC.

On April 25, 2024, the Company entered into a promissory note and related business loan agreement with a commercial bank, providing for a revolving line of credit facility in an amount of up to five million dollars maturing on April 25, 2026. The Company has secured its obligations under the Credit Agreement by pledging to the Lender all outstanding shares of common stock of its subsidiary bank, Reliance State Bank.

Goodwill: Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill resulting from acquisitions is not amortized but is tested for impairment annually or whenever events change, and circumstances indicate that it is more likely than not that an impairment loss has occurred. Goodwill is tested for impairment with an estimation of the fair value of a reporting unit.

The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Company’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Company’s stock price. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. The Company completed a quantitative assessment of goodwill as of October 1, 2023 which indicated that goodwill was not impaired. Subsequently, the Company determined there were no adverse changes in criteria and key considerations to the previous assessment. Accordingly, the Company concluded there is no impairment of goodwill as of March 31, 2024.

New and Pending Accounting Pronouncements:

In March 2023, the FASB issued ASU No. 2024-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using Proportional Amortization Method. The ASU is intended to improve the accounting and disclosures for investments in tax credit structures. It allows reporting entities to elect to adopt for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The ASU did not have a material impact on the Company’s financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation table and income taxes paid to be disaggregated by jurisdiction. It also includes certain amendments to improve the effectiveness of income tax disclosures. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.

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Note 2 - Dividends

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Dividends Disclosure [Text Block]

2. Dividends

On February 14, 2024, the Company declared a cash dividend on its common stock, payable on May 15, 2024 to stockholders of record as of May 1, 2024, equal to $0.27 per share.

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Note 3 - Earnings Per Share

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

3. Earnings Per Share

Earnings per share amounts were calculated using the weighted average shares outstanding during the periods presented. The weighted average outstanding shares for the three months ended March 31, 2024 and 2023 was 8,992,167. The Company had no potentially dilutive securities outstanding during the periods presented.

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Note 4 - Off-balance Sheet Arrangements

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Loans and Leases Receivable Commitments [Text Block]

4. Off-Balance Sheet Arrangements

The Company is party to financial instruments with off-balance sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. No material changes in the Company’s off-balance sheet arrangements have occurred since December 31, 2023.

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Note 5 - Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Fair Value Disclosures [Text Block]

5. Fair Value Measurements

Assets and liabilities carried at fair value are required to be classified and disclosed according to the process for determining fair value. There are three levels of determining fair value.

Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets.

Level 2: Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatility, prepayment speeds, credit risk); or inputs derived principally from or can be corroborated by observable market data by correlation or other means.         

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis.

Securities available-for-sale: Level 1 securities include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. U.S. government agencies, mortgage-backed securities, state and political subdivisions, and most corporate bonds are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.

Derivative financial instruments and loans receivable: The Company’s derivative financial instruments and loans receivable consist of interest rate swaps on loans accounted for as fair value hedges. The Company’s derivative financial instruments also include back-to-back loan swaps to assist customers in managing their interest rate risk while executing offsetting interest rate swaps with dealer counterparties. The Company's derivative positions and related loans are classified within Level 2 of the fair value hierarchy and are valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers and/or non-binding broker-dealer quotations. The fair value of the derivatives and loans are determined using discounted cash flow models. These models’ key assumptions include the contractual terms of the respective contract along with significant observable inputs, including interest rates, yield curves, nonperformance risk and volatility.

The following table presents the balances of assets measured at fair value on a recurring basis by level as of March 31, 2024 and December 31, 2023 (in thousands):

Description	Total		Level 1		Level 2		Level 3
2024
Assets
Securities available-for-sale
U.S. government treasuries	$	200,328	$	200,328	$	-	$	-
U.S. government agencies		92,265		-		92,265		-
U.S. government mortgage-backed securities		98,159		-		98,159		-
State and political subdivisions		262,855		-		262,855		-
Corporate bonds		69,598		-		69,598		-
Loans receivable		8,096		-		8,096		-
Derivative financial instruments		1,203		-		1,203		-
Liabilities
Derivative financial instruments	$	238	$	-	$	238	$	-
2023
Assets
Securities available-for-sale
U.S. government treasuries	$	200,088	$	200,088	$	-	$	-
U.S. government agencies		92,615		-		92,615		-
U.S. government mortgage-backed securities		101,864		-		101,864		-
State and political subdivisions		269,891		-		269,891		-
Corporate bonds		71,931		-		71,931		-
Loans receivable		8,327		-		8,327		-
Derivative financial instruments		1,225		-		1,225		-
Liabilities
Derivative financial instruments	$	745	$	-	$	745	$	-

Certain assets are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment or a change in previously recognized impairment).  The following table presents the assets carried on the balance sheet (after specific reserves) by caption and by level within the valuation hierarchy as of March 31, 2024 and December 31, 2023 (in thousands):

Description	Total		Level 1		Level 2		Level 3
2024
Collateral dependent loans	$	111	$	-	$	-	$	111
2023
Collateral dependent loans	$	105	$	-	$	-	$	105

The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 are as follows (in thousands):

	2024
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Collateral dependent loans	$	111	Evaluation of collateral	Estimation of value		NM*

	2023
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Collateral dependent loans	$	105	Evaluation of collateral	Estimation of value		NM*

* Not Meaningful.

Evaluations of the underlying assets are completed for each collateral dependent impaired loan with a specific reserve. The types of collateral vary widely and could include accounts receivables, inventory, a variety of equipment and real estate. Collateral evaluations are reviewed and discounted as appropriate based on knowledge of the specific type of collateral. In the case of real estate, an independent appraisal may be obtained. Types of discounts considered included aging of receivables, condition of the collateral, potential market for the collateral and estimated disposal costs. These discounts will vary from loan to loan, thus providing a range would not be meaningful.

GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or nonrecurring basis. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an 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. The following table includes the carrying amounts and estimated fair values of the Company’s financial assets and liabilities as of March 31, 2024 and December 31, 2023 (in thousands):

		2024				2023
	Fair Value			Estimated				Estimated
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	111,402	$	111,402	$	55,101	$	55,101
Interest-bearing time deposits	Level 1		7,660		7,239		8,904		8,444
Securities available-for-sale	See previous table		723,205		723,205		736,389		736,389
FHLB and FRB stock	Level 2		3,593		3,593		3,086		3,086
Loans receivable, net	Level 2		1,272,580		1,217,229		1,277,812		1,224,446
Loans held for sale	Level 2		739		739		124		124
Accrued income receivable	Level 1		12,246		12,246		12,953		12,953
Derivative financial instruments	Level 2		1,203		1,203		1,225		1,225
Financial liabilities:
Deposits	Level 2	$	1,872,123	$	1,873,135	$	1,811,831	$	1,812,718
Securities sold under agreements to repurchase	Level 1		53,037		53,037		53,994		53,994
Other borrowings	Level 2		90,284		84,252		110,588		110,376
Accrued interest payable	Level 1		2,571		2,571		4,710		4,710
Derivative financial instruments	Level 2		238		238		745		745

The methodologies used to determine fair value as of March 31, 2024 did not change from the methodologies described in the December 31, 2023 Annual Financial Statements.

Commitments to extend credit and standby letters of credit: The fair values of commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and credit worthiness of the counterparties. The carrying value and fair value of the commitments to extend credit and standby letters of credit are not considered significant.

Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

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Note 6 - Debt Securities

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

6. Debt Securities

The amortized cost of securities available-for-sale and their approximate fair values as of March 31, 2024 and December 31, 2023 are summarized below (in thousands):

2024:			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	213,801	$	8	$	(13,481	)	$	200,328
U.S. government agencies		99,124		2		(6,861	)		92,265
U.S. government mortgage-backed securities		112,244		1		(14,086	)		98,159
State and political subdivisions		285,410		55		(22,610	)		262,855
Corporate bonds		75,102		5		(5,509	)		69,598
	$	785,681	$	71	$	(62,547	)	$	723,205

2023:			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	213,646	$	29	$	(13,587	)	$	200,088
U.S. government agencies		99,455		2		(6,842	)		92,615
U.S. government mortgage-backed securities		115,988		-		(14,124	)		101,864
State and political subdivisions		292,475		93		(22,677	)		269,891
Corporate bonds		77,139		11		(5,219	)		71,931
	$	798,703	$	135	$	(62,449	)	$	736,389

The amortized cost and fair value of debt securities available-for-sale as of March 31, 2024, are shown below by expected maturity. Expected maturity will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands).

	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	93,493	$	91,733
Due after one year through five years		387,739		361,233
Due after five years through ten years		183,240		163,988
Due after ten years		8,965		8,092
	$	673,437	$	625,046
U.S. government mortgage-backed securities		112,244		98,159
Total	$	785,681	$	723,205

The Company's investment portfolio had an expected duration of 3.42 years as of March 31, 2024.

Securities with a carrying value of $388.7 million and $374.4 million at March 31, 2024 and December 31, 2023, respectively, were pledged on public deposits, securities sold under agreements to repurchase, other borrowings and for other purposes as required or permitted by law.

The proceeds and gains on securities available-for-sale for the three months ended March 31, 2024 and 2023 are summarized below (in thousands):

	Three Months Ended
	March 31,
	2024			2023
Proceeds from sales of securities available-for-sale	$	2,049		$	-
Gross realized gains on securities available-for-sale		-			-
Gross realized losses on securities available-for-sale		(165	)		-

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 and December 31, 2023 are summarized as follows (in thousands):

	Less than 12 Months							12 Months or More							Total
2024:	Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government treasuries	$	4,491	$	(19	)		2	$	193,044	$	(13,462	)		118	$	197,535	$	(13,481	)
U.S. government agencies		1,913		(18	)		2		85,896		(6,843	)		75		87,809		(6,861	)
U.S. government mortgage-backed securities		124		(1	)		1		97,580		(14,085	)		155		97,704		(14,086	)
State and political subdivisions		9,083		(125	)		20		247,740		(22,485	)		473		256,823		(22,610	)
Corporate bonds		3,115		(110	)		4		65,492		(5,399	)		81		68,607		(5,509	)
	$	18,726	$	(273	)		29	$	689,752	$	(62,274	)		902	$	708,478	$	(62,547	)

	Less than 12 Months							12 Months or More							Total
2023:	Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government treasuries	$	-	$	-			-	$	196,432	$	(13,587	)		121	$	196,432	$	(13,587	)
U.S. government agencies		1,986		(11	)		2		90,137		(6,831	)		78		92,123		(6,842	)
U.S. government mortgage-backed securities		467		(12	)		4		101,265		(14,112	)		155		101,732		(14,124	)
State and political subdivisions		9,054		(73	)		18		251,286		(22,604	)		474		260,340		(22,677	)
Corporate bonds		3,117		(108	)		4		67,816		(5,111	)		84		70,933		(5,219	)
	$	14,624	$	(204	)		28	$	706,936	$	(62,245	)		912	$	721,560	$	(62,449	)

Gross unrealized losses on debt securities totaled $62.5 million as of March 31, 2024. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, state or political subdivision, or corporations. Management then determines whether downgrades by bond rating agencies have occurred, and reviews industry analysts’ reports. The Company’s procedures for evaluating investments in states, municipalities and political subdivisions include but are not limited to reviewing the offering statement and the most current available financial information, comparing yields to yields of bonds of similar credit quality, confirming capacity to repay, assessing operating and financial performance, evaluating the stability of tax revenues, considering debt profiles and local demographics, and for revenue bonds, assessing the source and strength of revenue structures for municipal authorities. These procedures, as applicable, are utilized for all municipal purchases and are utilized in whole or in part for monitoring the portfolio of municipal holdings. The Company does not utilize third party credit rating agencies as a primary component of determining if the municipal issuer has an adequate capacity to meet the financial commitments under the security for the projected life of the investment, and, therefore, does not compare internal assessments to those of the credit rating agencies. Credit rating downgrades are utilized as an additional indicator of credit weakness and as a reference point for historical default rates. As of March 31, 2024 and December 31, 2023, the Company determined that no individual securities in an unrealized loss position represented credit losses that would require an allowance for credit losses. The Company concluded that the unrealized losses were primarily attributable to increases in market interest rates since these securities were purchased and other market conditions. Accrued interest receivable on AFS debt securities totaled $4.0 million and $3.5 million as of March 31, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses.

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Note 7 - Loans Receivable and Credit Disclosures

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Financing Receivables [Text Block]

7. Loans Receivable and Credit Disclosures

The composition of loans receivable as of March 31, 2024 and December 31, 2023 is as follows (in thousands):

	2024			2023
Real estate - construction	$	70,095		$	63,050
Real estate - 1 to 4 family residential		288,988			289,404
Real estate - multi-family		196,010			195,536
Real estate - commercial		353,061			359,266
Real estate - agricultural		160,457			161,517
Commercial		87,751			89,729
Agricultural		117,254			119,136
Consumer and other		15,854			16,540
		1,289,470			1,294,178
Unallocated portfolio layer basis adjustments1		62			410
Less allowance for credit losses		(16,952	)		(16,776	)
Loans receivable, net	$	1,272,580		$	1,277,812

¹ This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under the portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 10 (“Derivative Financial Instruments”) for additional information.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses (ACL) and other basis adjustments. Amortized cost is the principal balance outstanding, net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Accrued interest receivable on loans held for investment totaled $8.3 million and $9.4 million as of March 31, 2024 and December 30, 2023, respectively, and is excluded from the estimate of credit losses. Nonrefundable loan fees and origination costs are deferred and recognized as a yield adjustment over the life of the related loan.

The policy for charging off loans is consistent throughout all loan categories. A loan is charged off based on criteria that includes but is not limited to: delinquency status, financial condition of the entire customer credit line and underlying collateral coverage, economic or external conditions that might impact full repayment of the loan, legal issues, overdrafts, and the customer’s willingness to work with the Company.

Allowance for Credit Losses for Loans. The allowance for credit losses is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. Expected credit loss inherent in non-cancelable off-balance-sheet (“OBS”) credit exposures is accounted for as a separate liability on the balance sheet. The Company's allowance for credit losses for OBS was $1.1 million as of March 31, 2024 and December 31, 2023. The allowance for credit losses for loans held for investment, as reported in our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

The credit loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments which consist of construction real estate, 1 to 4 family residential real estate, multi-family real estate, commercial real estate, agricultural real estate, commercial, agricultural and consumer and other lending. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The key components in this estimation process include the following:

● An initial forecast period of one year for all portfolio segments and OBS credit exposures. This period reflects management's expectation of losses based on forward-looking economic scenarios over that time.

● A historical loss forecast period covering the remaining contractual life, adjusted for prepayments, by portfolio segment based on the change in key historical economic variables.

● A reversion period of 1 year connecting the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date.

The Company primarily utilizes loss rate based undiscounted cash flow (UDCF) methods to estimate credit losses by portfolio segment. The UDCF methods obtain estimated life-time credit losses using the conceptual components described above.

Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimation of expected credit losses. The following provides the credit quality indicators and risk elements that are most relevant and most carefully considered and monitored for each loan portfolio segment.

Construction loans are underwritten utilizing independent appraisals, sensitivity analysis of absorption, vacancy and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. These estimates may prove to be inaccurate primarily due to unforeseen circumstances beyond the control of the borrower or lender. Construction loans often involve the disbursement of funds with repayment substantially dependent on the success of the ultimate project. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. The Company may require guarantees on these loans. The Company’s construction loans are secured primarily by properties located in its primary market area. National unemployment rate is a key economic forecast used in estimating expected credit losses for this segment.

The Company originates 1-4 family real estate loans utilizing credit reports to supplement the underwriting process. The Company’s underwriting standards for 1-4 family loans are generally in accordance with FHLMC and FNMA manual underwriting guidelines. Properties securing 1-4 family real estate loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function and have been approved by the Board of Directors. The loan-to-value ratios normally do not exceed 90% without credit enhancements such as mortgage insurance. The Company will lend up to 100% of the lesser of the appraised value or purchase price for conventional 1-4 family real estate loans, provided private mortgage insurance is obtained. The Company’s 1-4 family real estate loans are secured primarily by properties located in its primary market area. The national unemployment rate is a key economic forecast used in estimating expected credit losses for this segment.

Multi-family, commercial and agricultural real estate loans are subject to underwriting standards and processes similar to commercial and agricultural operating loans, in addition to those unique to real estate loans. These loans are viewed primarily as cash flow loans and, secondarily, as loans secured by real estate. Multi-family, commercial and agricultural real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Loan-to-value generally does not exceed 80% of the cost or value of the assets. Loans are typically subject to interest rate adjustments between five and seven years from origination. Fully amortized monthly repayment terms normally do not exceed twenty-five years. Projections and cash flows that show ability to service debt within the amortization period are required. Property and casualty insurance is required to protect the Banks’ collateral interests. Appraisals on properties securing these loans are generally performed by fee appraisers approved by the Board of Directors. Because payments on multi-family, commercial and agricultural real estate loans are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. Management monitors and evaluates commercial and agricultural real estate loans based on collateral and risk rating criteria. The Company may require guarantees on these loans. The Company’s multi-family, commercial and agricultural real estate loans are secured primarily by properties located in its primary market areas. The national unemployment rate and the national real gross domestic product (GDP) are key economic forecasts used in estimating expected credit losses for the multi-family and commercial real estate segments. The national real GDP is a key economic forecast used in estimating expected credit losses for the agricultural real estate segment.

Commercial and agricultural operating loans are underwritten based on the Company’s examination of current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. This underwriting includes the evaluation of cash flows of the borrower, underlying collateral, if applicable, and the borrower’s ability to manage its business activities. The cash flows of borrowers and the collateral securing these loans may fluctuate in value after the initial evaluation. A first priority lien on the general assets of the business normally secures these types of loans. Loan-to-value limits vary and are dependent upon the nature and type of the underlying collateral and the financial strength of the borrower. Crop and hail insurance is required for most agricultural borrowers. Loans are generally guaranteed by the principal(s). The Company’s commercial and agricultural operating lending is primarily in its primary market area. The national unemployment rate and the national real GDP are key economic forecasts used in estimating expected credit losses for the commercial operating segment. The national real GDP is a key economic forecast used in estimating expected credit losses for the agricultural operating segment.

Consumer and other loans utilize credit reports to supplement the underwriting process. The underwriting standards include a determination of the applicant’s payment history on other debts and an assessment of their ability to meet existing obligations and payments on the proposed loan. To monitor and manage loan risk, policies and procedures are developed and modified, as needed by management. This activity, coupled with smaller loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, market conditions are reviewed by management on a regular basis. The Iowa real GDP and Iowa retail trade earnings are key economic forecasts used in estimating expected credit losses for this segment.

Activity in the allowance for credit losses, on a disaggregated basis, for the three months ended March 31, 2024 and 2023 is as follows (in thousands):

	Three Months Ended March 31, 2024
			1-4 Family
	Construction		Residential			Multi-family			Commercial		Agricultural									Consumer
	Real Estate		Real Estate			Real Estate			Real Estate		Real Estate			Commercial			Agricultural			and Other			Total
Balance, December 31, 2023	$	408	$	3,333		$	2,542		$	5,236	$	1,238		$	1,955		$	1,607		$	457		$	16,776
Credit loss expense (benefit) 1		45		(25	)		(5	)		258		(17	)		(43	)		(19	)		(22	)		172
Recoveries of loans charged-off		-		1			-			-		-			1			-			2			4
Loans charged-off		-		-			-			-		-			-			-			-			-
Balance, March 31, 2024	$	453	$	3,309		$	2,537		$	5,494	$	1,221		$	1,913		$	1,588		$	437		$	16,952

(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $3 thousand related to off-balance sheet credit exposures.

	Three Months Ended March 31, 2023
				1-4 Family
	Construction			Residential		Multi-family			Commercial			Agricultural									Consumer
	Real Estate			Real Estate		Real Estate			Real Estate			Real Estate			Commercial			Agricultural			and Other		Total
Balance, December 31, 2022	$	730		$	3,028	$	2,493		$	4,742		$	1,625		$	1,153		$	1,705		$	221	$	15,697
Impact of adopting ASC 326		(395	)		242		(24	)		513			(398	)		449			(61	)		192		518
Credit loss expense (benefit) 2		56			17		99			(54	)		(9	)		183			(88	)		8		212
Recoveries of loans charged-off		-			1		-			5			-			3			-			1		10
Loans charged-off		-			-		-			-			-			(4	)		(164	)		-		(168	)
Balance, March 31, 2023	$	391		$	3,288	$	2,568		$	5,206		$	1,218		$	1,784		$	1,392		$	422	$	16,269

(2) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense of $63 thousand related to off-balance sheet credit exposures.

Collateral Dependent Loans. The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans (in thousands):

	Primary Type of Collateral
March 31, 2024	Real Estate		Equipment		Other		Total		ACL Allocation
Real estate - construction	$	62	$	-	$	-	$	62	$	-
Real estate - 1 to 4 family residential		666		-		-		666		3
Real estate - multi-family		2,020		-		-		2,020		-
Real estate - commercial		8,698		-		-		8,698		-
Real estate - agricultural		444		-		-		444		-
Commercial		114		2		95		211		93
Agricultural		233		389		402		1,024		-
Consumer and other		-		-		7		7		-
	$	12,237	$	391	$	504	$	13,132	$	96

	Primary Type of Collateral
December 31, 2023	Real Estate		Equipment		Other		Total		ACL Allocation
Real estate - construction	$	66	$	-	$	-	$	66	$	-
Real estate - 1 to 4 family residential		678		-		-		678		10
Real estate - multi-family		2,034		-		-		2,034		-
Real estate - commercial		8,993		-		-		8,993		-
Real estate - agricultural		449		-		-		449		-
Commercial		118		-		101		219		96
Agricultural		239		669		402		1,310		-
Consumer and other		-		-		-		-		-
	$	12,577	$	669	$	503	$	13,749	$	106

Nonaccrual Loans. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower's ability to meet payments of interest or principal when they become due, which is generally when a loan is 90 days or more past due unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual status, all previously accrued and unpaid interest is reversed against interest income. Loans are returned to an accrual status when all of the principal and interest amounts contractually due are brought current and repayment of the remaining contractual principal and interest is expected. A loan may also return to accrual status if additional collateral is received from the borrower and, in the opinion of management, the financial position of the borrower indicates that there is no longer any reasonable doubt as to the collection of the amount contractually due. Payment received on nonaccrual loans are applied first to principal. Once principal is recovered, any remaining payments received are applied to interest income.

The following table presents the amortized cost basis of loans on nonaccrual status and loans on nonaccrual status with no allowance for credit losses recorded by loan segment (in thousands):

	Total Nonaccrual				Nonaccrual with no ACL
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Real estate - construction	$	62	$	66	$	62	$	66
Real estate - 1 to 4 family residential		666		678		552		563
Real estate - multi-family		2,020		2,034		2,020		2,034
Real estate - commercial		8,698		8,976		8,698		8,976
Real estate - agricultural		444		449		444		449
Commercial		258		268		165		172
Agricultural		1,024		1,310		1,024		1,310
Consumer and other		18		13		7		-
	$	13,190	$	13,794	$	12,972	$	13,570

The interest foregone on nonaccrual loans for the three months ended March 31, 2024 and 2023 was approximately $239 thousand and $179 thousand, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty. Loan modifications may include interest rate reductions or below market interest rates, extension of payments terms beyond the original maturity date, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses.

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a loss rate model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification.

The Company made no loan modifications and three loan modifications to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and 2023, respectively.

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by segment of financing receivable and type of concession granted (in thousands):

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Term Extension
	Amortized Cost Basis at		% of Total Segment of
	March 31, 2024		Financing Receivable
Loan Type
Agricultural	$	336		0.3	%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Term Extension
Loan Type	Financial Effect
Agricultural	Added a weighted-average 8 years to the life of loans, which reduced monthly payment amounts for the borrowers

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The Company had no net charge-offs for the three months ended March 31, 2024 and 2023 related to loan modifications to borrowers experiencing financial difficulties.

There were two loan modifications with an amortized cost basis of $42 thousand that had a payment default and were modified in the twelve months before default as of March 31, 2024. A loan is considered to be in payment default once it is 60 days contractually past due under the modified terms.

Aging Analysis. An aging analysis of the recorded investments in loans, on a disaggregated basis, as of March 31, 2024 and December 31, 2023, is as follows (in thousands):

2024			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	-	$	-	$	-	$	70,095	$	70,095	$	-
Real estate - 1 to 4 family residential		978		309		1,287		287,701		288,988		96
Real estate - multi-family		-		982		982		195,028		196,010		-
Real estate - commercial		118		-		118		352,943		353,061		-
Real estate - agricultural		111		-		111		160,346		160,457		-
Commercial		213		95		308		87,443		87,751		-
Agricultural		134		403		537		116,717		117,254		14
Consumer and other		4		7		11		15,843		15,854		-
	$	1,558	$	1,796	$	3,354	$	1,286,116	$	1,289,470	$	110

2023			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	359	$	66	$	425	$	62,625	$	63,050	$	-
Real estate - 1 to 4 family residential		1,020		302		1,322		288,082		289,404		3
Real estate - multi-family		-		983		983		194,553		195,536		-
Real estate - commercial		119		106		225		359,041		359,266		106
Real estate - agricultural		-		-		-		161,517		161,517		-
Commercial		559		98		657		89,072		89,729		-
Agricultural		169		529		698		118,438		119,136		-
Consumer and other		16		-		16		16,524		16,540		-
	$	2,242	$	2,084	$	4,326	$	1,289,852	$	1,294,178	$	109

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk ratings of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in our market areas.

The Company utilizes a risk rating matrix to assign risk ratings to each of its loans. Loans are rated on a scale of 1 to 7. A description of the general characteristics of the risk ratings is as follows:

Ratings 1, 2 and 3 - These ratings include “Pass” loans of average to excellent credit quality borrowers. These borrowers generally have significant capital strength, moderate leverage and stable earnings and growth commensurate to their relative risk rating. These ratings are reviewed at least annually. These ratings also include performing loans of less than $100,000.

Rating 4 - This rating includes loans on management’s “watch list” and is intended to be utilized for pass rated borrowers where credit quality has begun to show signs of financial weakness that now requires management’s heightened attention. This rating is reviewed at least quarterly.

Rating 5 - This rating is for “Special Mention” loans in accordance with regulatory guidelines. This rating is intended to be temporary and includes loans to borrowers whose credit quality has clearly deteriorated and are at risk of further decline unless active measures are taken to correct the situation. This rating is reviewed at least quarterly.

Rating 6 - This rating includes “Substandard” loans in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Under regulatory guideline definitions, a “Substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. This rating is reviewed at least quarterly.

Rating 7 - This rating includes “Substandard-Impaired” loans in accordance with regulatory guidelines, for which the accrual of interest has generally been stopped. This rating includes loans: (i) where interest is more than 90 days past due, (ii) not fully secured, (iii) where a specific valuation allowance may be necessary, or (iv) where the borrower is unable to make contractual principal and interest payments. This rating is reviewed at least quarterly.

The following tables show the risk category of loans by loan segment and year of origination as of March 31, 2024 and December 31, 2023 (in thousands):

March 31, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Real estate - construction
Pass	$	9,726	$	43,869	$	13,901	$	246	$	11	$	324	$	1,877	$	69,954
Watch				79		-		-		-		-		-		79
Special Mention				-		-		-		-		-		-		-
Substandard				-		-		-		-		-		-		-
Substandard-Impaired		62		-		-		-		-		-		-		62
Total	$	9,788	$	43,948	$	13,901	$	246	$	11	$	324	$	1,877	$	70,095
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - 1-4 family residential
Pass	$	9,509	$	52,327	$	64,412	$	58,158	$	46,192	$	23,741	$	18,245	$	272,584
Watch		83		1,513		293		10,265		915		350		82		13,501
Special Mention		-		-		-		-		299		-		-		299
Substandard		-		444		17		1,337		47		93		-		1,938
Substandard-Impaired		74		114		-		142		-		336		-		666
Total	$	9,666	$	54,398	$	64,722	$	69,902	$	47,453	$	24,520	$	18,327	$	288,988
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - multi-family
Pass	$	1,872	$	18,825	$	51,511	$	46,627	$	39,806	$	13,723	$	4,751	$	177,115
Watch		-		5,053		1,420		8,129		-		-		-		14,602
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		2,274		-		-		2,274
Substandard-Impaired		-		983		-		-		-		1,036		-		2,019
Total	$	1,872	$	24,861	$	52,931	$	54,756	$	42,080	$	14,759	$	4,751	$	196,010
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - commercial
Pass	$	5,600	$	35,237	$	79,514	$	45,635	$	65,375	$	31,842	$	3,323	$	266,526
Watch		111		8,309		13,442		14,533		13,938		651		2,542		53,526
Special Mention		-		-		2,529		6,205		2,978		1,035		-		12,747
Substandard		-		847		-		10,190		544		-		-		11,581
Substandard-Impaired		-		8,326		-		-		-		355		-		8,681
Total	$	5,711	$	52,719	$	95,485	$	76,563	$	82,835	$	33,883	$	5,865	$	353,061
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - agricultural
Pass	$	7,570	$	20,913	$	30,100	$	31,682	$	24,924	$	26,367	$	1,594	$	143,150
Watch		-		4,227		378		2,226		2,699		3,581		-		13,111
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		2,279		1,439		113		-		214		-		4,045
Substandard-Impaired		-		-		-		151		-		-		-		151
Total	$	7,570	$	27,419	$	31,917	$	34,172	$	27,623	$	30,162	$	1,594	$	160,457
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

March 31, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Commercial
Pass	$	5,216	$	21,106	$	11,818	$	9,732	$	1,923	$	3,821	$	27,287	$	80,903
Watch		632		539		275		64		368		203		1,746		3,827
Special Mention		-		-		-		-		-		-		-		-
Substandard		599		-		209		-		417		-		1,538		2,763
Substandard-Impaired		44		46		-		4		93		71		-		258
Total	$	6,491	$	21,691	$	12,302	$	9,800	$	2,801	$	4,095	$	30,571	$	87,751
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural
Pass	$	8,212	$	11,314	$	6,741	$	4,686	$	2,247	$	881	$	64,304	$	98,385
Watch		4,280		579		374		347		388		212		10,420		16,600
Special Mention		-		-		-		-		-		-		-		-
Substandard		1,420		46		14		25		43		-		-		1,548
Substandard-Impaired		-		96		-		236		-		-		389		721
Total	$	13,912	$	12,035	$	7,129	$	5,294	$	2,678	$	1,093	$	75,113	$	117,254
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer and other
Pass	$	1,158	$	5,847	$	3,262	$	2,476	$	1,930	$	1,019	$	118	$	15,810
Watch		15		1		-		-		-		-		-		16
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		8		-		-		-		-		-		8
Substandard-Impaired		-		-		9		-		11		-		-		20
Total	$	1,173	$	5,856	$	3,271	$	2,476	$	1,941	$	1,019	$	118	$	15,854
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total loans
Pass	$	48,863	$	209,438	$	261,259	$	199,242	$	182,408	$	101,718	$	121,499	$	1,124,427
Watch		5,121		20,300		16,182		35,564		18,308		4,997		14,790		115,262
Special Mention		-		-		2,529		6,205		3,277		1,035		-		13,046
Substandard		2,019		3,624		1,679		11,665		3,325		307		1,538		24,157
Substandard-Impaired		180		9,565		9		533		104		1,798		389		12,578
Total	$	56,183	$	242,927	$	281,658	$	253,209	$	207,422	$	109,855	$	138,216	$	1,289,470
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Real estate - construction
Pass	$	45,404	$	14,501	$	746	$	11	$	-	$	325	$	1,917	$	62,904
Watch		80		-		-		-		-		-		-		80
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard-Impaired		-		66		-		-		-		-		-		66
Total	$	45,484	$	14,567	$	746	$	11	$	-	$	325	$	1,917	$	63,050
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - 1-4 family residential
Pass	$	55,051	$	66,190	$	59,250	$	47,865	$	8,607	$	17,154	$	18,649	$	272,766
Watch		1,608		298		10,483		1,226		-		358		27		14,000
Special Mention		-		-		-		-		-		-		-		-
Substandard		448		18		1,350		47		33		64		-		1,960
Substandard-Impaired		115		-		140		-		199		144		80		678
Total	$	57,222	$	66,506	$	71,223	$	49,138	$	8,839	$	17,720	$	18,756	$	289,404
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - multi-family
Pass	$	18,436	$	51,928	$	47,161	$	40,201	$	13,542	$	694	$	5,020	$	176,982
Watch		4,603		1,427		8,192		-		-		-		-		14,222
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		2,298		-		-		-		2,298
Substandard-Impaired		983		-		-		-		1,051		-		-		2,034
Total	$	24,022	$	53,355	$	55,353	$	42,499	$	14,593	$	694	$	5,020	$	195,536
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - commercial
Pass	$	35,133	$	81,342	$	51,598	$	66,467	$	20,006	$	13,122	$	2,929	$	270,597
Watch		8,379		13,580		14,669		14,607		78		583		2,988		54,884
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		897		-		4,822		551		-		106		-		6,376
Substandard-Impaired		8,517		-		99		-		360		-		-		8,976
Total	$	52,926	$	97,453	$	83,041	$	84,631	$	21,487	$	13,811	$	5,917	$	359,266
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - agricultural
Pass	$	22,469	$	30,738	$	32,893	$	27,733	$	6,039	$	22,850	$	2,073	$	144,795
Watch		4,163		379		2,263		1,760		333		3,601		-		12,499
Special Mention		-		-		-		-		-		-		-		-
Substandard		2,302		1,439		114		-		-		214		-		4,069
Substandard-Impaired		-		-		154		-		-		-		-		154
Total	$	28,934	$	32,556	$	35,424	$	29,493	$	6,372	$	26,665	$	2,073	$	161,517
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Commercial
Pass	$	23,904	$	12,645	$	10,378	$	2,087	$	2,434	$	1,578	$	29,752	$	82,778
Watch		860		295		119		423		93		137		1,996		3,923
Special Mention		-		-		-		-		-		-		-		-
Substandard		600		256		-		421		-		-		1,484		2,761
Substandard-Impaired		94		-		5		96		-		72		-		267
Total	$	25,458	$	13,196	$	10,502	$	3,027	$	2,527	$	1,787	$	33,232	$	89,729
Current-period gross writeoffs	$	-	$	-	$	-	$	33	$	-	$	4	$	-	$	37
Agricultural
Pass	$	14,614	$	8,395	$	5,459	$	2,858	$	400	$	608	$	77,448	$	109,782
Watch		1,107		340		288		18		18		194		5,419		7,384
Special Mention		-		-		-		-		-		-		-		-
Substandard		866		14		25		58		-		-		-		963
Substandard-Impaired		95		140		383		-		-		-		389		1,007
Total	$	16,682	$	8,889	$	6,155	$	2,934	$	418	$	802	$	83,256	$	119,136
Current-period gross writeoffs	$	39	$	74	$	90	$	-	$	-	$	-	$	-	$	203
Consumer and other
Pass	$	6,801	$	3,719	$	2,701	$	2,071	$	352	$	731	$	15	$	16,390
Watch		127		-		-		-		-		-		-		127
Special Mention		-		-		-		-		-		-		-		-
Substandard		10		-		-		-		-		-		-		10
Substandard-Impaired		-		-		-		13		-		-		-		13
Total	$	6,938	$	3,719	$	2,701	$	2,084	$	352	$	731	$	15	$	16,540
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	5	$	-	$	5
Total loans
Pass	$	221,812	$	269,458	$	210,186	$	189,293	$	51,380	$	57,062	$	137,803	$	1,136,994
Watch		20,927		16,319		36,014		18,034		522		4,873		10,430		107,119
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		5,123		1,727		6,311		3,375		33		384		1,484		18,437
Substandard-Impaired		9,804		206		781		109		1,610		216		469		13,195
Total	$	257,666	$	290,241	$	265,145	$	213,817	$	54,588	$	62,535	$	150,186	$	1,294,178
Current-period gross writeoffs	$	39	$	74	$	90	$	33	$	-	$	9	$	-	$	245

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Note 8 - Intangible Assets

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

8. Intangible assets

The following sets forth the carrying amounts and accumulated amortization of the intangible assets at March 31, 2024 and December 31, 2023 (in thousands):

	2024				2023
	Gross		Accumulated		Gross		Accumulated
	Amount		Amortization		Amount		Amortization
Core deposit intangible asset	$	6,411	$	5,069	$	6,411	$	4,982
Customer list		-		-		535		535
Total	$	6,411	$	5,069	$	6,946	$	5,517

The weighted average remaining life of the intangible assets is approximately 2 years as of March 31, 2024 and December 31, 2023.

The following sets forth the activity related to the intangible assets for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended
	March 31,
	2024			2023
Beginning intangible assets, net	$	1,429		$	1,931
Amortization		(87	)		(130	)
Ending intangible assets, net	$	1,342		$	1,801

Estimated remaining amortization expense on intangible assets for the years ending December 31 is as follows (in thousands):

2024		250
2025		301
2026		268
2027		240
2028		190
2029		93
Total	$	1,342

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Note 9 - Pledged Collateral Related to Securities Sold Under Repurchase Agreements

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

9. Pledged Collateral Related to Securities Sold Under Repurchase Agreements

The repurchase agreements mature daily and the following sets forth the pledged collateral at estimated fair value related to securities sold under repurchase agreements as of March 31, 2024 and December 31, 2023 (in thousands):

	2024		2023
Securities sold under agreements to repurchase:
U.S. government treasuries	$	23,808	$	22,877
U.S. government agencies		44,792		44,960
U.S. government mortgage-backed securities		7,590		7,369
Total pledged collateral	$	76,190	$	75,206

In the event the repurchase agreements exceed the estimated fair value of the pledged securities available-for-sale, the Company has unpledged securities available-for-sale that may be pledged on the repurchase agreements.

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Note 11 - Derivative Financial Instruments

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

10. Derivative Financial Instruments

Fair Value Hedges

The Company uses interest rate swaps to convert certain long term fixed rate loans to floating rates to hedge interest rate risk exposure. The Company uses hedge accounting in accordance with ASC 815, with the unrealized gains and losses, representing the change in fair value of the derivative and the change in fair value of the risk being hedged on the related loan, being recorded in the consolidated statements of income. The ineffective portions of the unrealized gains or losses, if any, are recorded in interest income and interest expense in the consolidated statements of income.

During 2023, the Company executed an interest rate swap designated as a fair value hedge with an original notional amount of $25.0 million to convert certain long-term fixed rate 1-4 family loans to floating rates to hedge interest rate risk exposure using the portfolio layer method.

The portfolio layer method allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors that would affect the timing and amount of cash flow. The fair value portfolio level basis adjustment on the hedged loans has not been attributed to the individual loans on the consolidated balance sheet.

The table below identifies the notional amount, fair value and balance sheet category of the Company's interest rate swaps at March 31, 2024, and December 31, 2023 (in thousands):

	Notional Amount		Fair Value			Balance Sheet Category
March 31, 2024
Interest rate swaps	$	8,831	$	1,027		Other assets
Interest rate swaps		25,000		(62	)	Other liabilities
December 31, 2023
Interest rate swaps	$	8,930	$	891		Other assets
Interest rate swaps		25,000		(411	)	Other liabilities

The table below identifies the carrying amount of the hedged assets and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets that are designated as a fair value hedge accounting relationship at March 31, 2024, and December 31, 2023 (in thousands):

				Cumulative Amount of Fair Value
	Location in the consolidated	Carrying Amount of		Hedging Adjustment Included in
	balance sheet	the Hedged Assets		Carrying Amount of Hedged Assets
March 31, 2024
Interest rate swaps	Loans receivable, net	$	57,073	$	(965	)
December 31, 2023
Interest rate swaps	Loans receivable, net	$	58,588	$	(481	)

Back-to-Back Loan Swaps

The Company has interest rate swap loan relationships with customers to assist them in managing their interest rate risk. Upon entering into these loan swaps, the Company enters into offsetting positions with counterparties in order to minimize interest rate risk. These back-to-back loan swaps qualify as free standing financial derivatives with the fair values reported in other assets and other liabilities on the consolidated balance sheets. Any gains and losses on these back-to-back swaps are recorded in noninterest income on the consolidated statements of income, and for the three and three months ended March 31, 2024, and March 31, 2023, no gain or loss was recognized. The table below identifies the balance sheet category and fair values of the derivative instruments designated as loan swaps at March 31, 2024, and December 31, 2023 (in thousands):

							Weighted Average			Weighted Average
	Notional Amount		Fair Value			Balance Sheet Category	Receive Rate			Pay Rate
March 31, 2024
Customer interest rate swaps	$	12,373	$	176		Other assets		7.32	%		5.62	%
Customer interest rate swaps		12,373		(176	)	Other liabilities		5.62	%		7.32	%
December 31, 2023
Customer interest rate swaps	$	11,353	$	334		Other assets		7.36	%		5.62	%
Customer interest rate swaps		11,353		(334	)	Other liabilities		5.62	%		7.36	%

The Company was required to pledge $1.5 million and $1.6 million of securities as collateral for these derivative financial instruments at March 31, 2024, and December 31, 2023, respectively. The Company's counterparties were not required to pledge collateral at March 31, 2024 and December 31, 2023.

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Note 11 - Income Taxes

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11. Income Taxes

The tax effects of temporary differences related to income taxes are included in deferred income taxes. The change in deferred income taxes since December 31, 2023 is due primarily to the increase in unrealized losses on investment securities.

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Note 12 - Regulatory Matters

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

12. Regulatory Matters

The Company and the Banks are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements (as shown in the following table) can result in certain mandatory and possibly additional discretionary actions by regulators, which, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's and the Banks' capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believed the Company and the Banks met all capital adequacy requirements to which they were subject as of March 31, 2024.

The Company and the Banks’ capital amounts and ratios as of March 31, 2024 and December 31, 2023 are as follows (dollars in thousands):

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of March 31, 2024:
Total capital (to risk-weighted assets):
Consolidated	$	218,220		14.1	%	$	162,803		10.50	%		N/A		N/A
Boone Bank & Trust		16,203		12.8			13,285		10.50			12,652		10.0	%
First National Bank		111,844		14.1			83,450		10.50			79,477		10.0
Iowa State Savings Bank		27,014		16.0			17,674		10.50			16,833		10.0
Reliance State Bank		28,842		12.3			24,697		10.50			23,521		10.0
State Bank & Trust		22,271		16.0			14,603		10.50			13,907		10.0
United Bank & Trust		13,107		15.5			8,877		10.50			8,454		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	200,184		12.9	%	$	131,793		8.50	%		N/A		N/A
Boone Bank & Trust		15,233		12.0			10,754		8.50			10,122		8.0	%
First National Bank		102,355		12.9			67,555		8.50			63,581		8.0
Iowa State Savings Bank		24,930		14.8			14,308		8.50			13,466		8.0
Reliance State Bank		26,076		11.1			19,993		8.50			18,817		8.0
State Bank & Trust		20,627		14.8			11,821		8.50			11,126		8.0
United Bank & Trust		12,050		14.3			7,186		8.50			6,763		8.0
Tier 1 capital (to average-assets):
Consolidated	$	200,184		9.0	%	$	88,970		4.00	%		N/A		N/A
Boone Bank & Trust		15,233		9.3			6,537		4.00			8,171		5.0	%
First National Bank		102,355		8.9			45,931		4.00			57,414		5.0
Iowa State Savings Bank		24,930		9.5			10,511		4.00			13,139		5.0
Reliance State Bank		26,076		8.4			12,344		4.00			15,430		5.0
State Bank & Trust		20,627		9.7			8,463		4.00			10,579		5.0
United Bank & Trust		12,050		9.7			4,951		4.00			6,188		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	200,184		12.9	%	$	108,535		7.00	%		N/A		N/A
Boone Bank & Trust		15,233		12.0			8,857		7.00			8,224		6.5	%
First National Bank		102,355		12.9			55,634		7.00			51,660		6.5
Iowa State Savings Bank		24,930		14.8			11,783		7.00			10,941		6.5
Reliance State Bank		26,076		11.1			16,465		7.00			15,289		6.5
State Bank & Trust		20,627		14.8			9,735		7.00			9,040		6.5
United Bank & Trust		12,050		14.3			5,918		7.00			5,495		6.5

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2023:
Total capital (to risk-weighted assets):
Consolidated	$	218,049		14.0	%	$	164,005		10.50	%		N/A		N/A
Boone Bank & Trust		16,232		13.6			12,510		10.50			11,914		10.0	%
First National Bank		112,057		13.9			84,863		10.50			80,822		10.0
Iowa State Savings Bank		26,691		15.7			17,854		10.50			17,004		10.0
Reliance State Bank		28,755		11.9			25,293		10.50			24,089		10.0
State Bank & Trust		22,283		16.0			14,597		10.50			13,902		10.0
United Bank & Trust		12,989		16.1			8,486		10.50			8,082		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	200,187		12.8	%	$	132,766		8.50	%		N/A		N/A
Boone Bank & Trust		15,309		12.8			10,127		8.50			9,532		8.0	%
First National Bank		102,634		12.7			68,699		8.50			64,658		8.0
Iowa State Savings Bank		24,619		14.5			14,453		8.50			13,603		8.0
Reliance State Bank		25,937		10.8			20,476		8.50			19,271		8.0
State Bank & Trust		20,676		14.9			11,817		8.50			11,122		8.0
United Bank & Trust		11,979		14.8			6,870		8.50			6,466		8.0
Tier 1 capital (to average-assets):
Consolidated	$	200,187		9.0	%	$	88,992		4.00	%		N/A		N/A
Boone Bank & Trust		15,309		9.6			6,393		4.00			7,991		5.0	%
First National Bank		102,634		8.8			46,878		4.00			58,597		5.0
Iowa State Savings Bank		24,619		9.6			10,234		4.00			12,792		5.0
Reliance State Bank		25,937		8.3			12,464		4.00			15,580		5.0
State Bank & Trust		20,676		9.6			8,573		4.00			10,717		5.0
United Bank & Trust		11,979		9.5			5,039		4.00			6,299		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	200,187		12.8	%	$	109,337		7.00	%		N/A		N/A
Boone Bank & Trust		15,309		12.8			8,340		7.00			7,744		6.5	%
First National Bank		102,634		12.7			56,576		7.00			52,534		6.5
Iowa State Savings Bank		24,619		14.5			11,903		7.00			11,052		6.5
Reliance State Bank		25,937		10.8			16,862		7.00			15,658		6.5
State Bank & Trust		20,676		14.9			9,731		7.00			9,036		6.5
United Bank & Trust		11,979		14.8			5,657		7.00			5,253		6.5

The Company and the Banks are subject to the rules of the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules included the implementation of a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes for all capital ratios except tier 1 capital to average assets. A banking organization with a capital conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. At March 31, 2024, the capital ratios for the Company and the Banks were sufficient to meet the conservation buffer.

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Insider Trading Arrangements

3 Months Ended

Mar. 31, 2024

Insider Trading Arr Line Items

Material Terms of Trading Arrangement [Text Block]

Item 5. Other information

Not applicable

Rule 10b5-1 Arrangement Adopted [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Subsequent Events, Policy [Policy Text Block]

Subsequent Events: The Company has evaluated subsequent events through the filing date of this Quarterly Report on Form 10-Q with the SEC.

On April 25, 2024, the Company entered into a promissory note and related business loan agreement with a commercial bank, providing for a revolving line of credit facility in an amount of up to five million dollars maturing on April 25, 2026. The Company has secured its obligations under the Credit Agreement by pledging to the Lender all outstanding shares of common stock of its subsidiary bank, Reliance State Bank.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill: Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill resulting from acquisitions is not amortized but is tested for impairment annually or whenever events change, and circumstances indicate that it is more likely than not that an impairment loss has occurred. Goodwill is tested for impairment with an estimation of the fair value of a reporting unit.

The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Company’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Company’s stock price. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. The Company completed a quantitative assessment of goodwill as of October 1, 2023 which indicated that goodwill was not impaired. Subsequently, the Company determined there were no adverse changes in criteria and key considerations to the previous assessment. Accordingly, the Company concluded there is no impairment of goodwill as of March 31, 2024.

New Accounting Pronouncements, Policy [Policy Text Block]

New and Pending Accounting Pronouncements:

In March 2023, the FASB issued ASU No. 2024-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using Proportional Amortization Method. The ASU is intended to improve the accounting and disclosures for investments in tax credit structures. It allows reporting entities to elect to adopt for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The ASU did not have a material impact on the Company’s financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation table and income taxes paid to be disaggregated by jurisdiction. It also includes certain amendments to improve the effectiveness of income tax disclosures. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.

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Note 5 - Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

Description	Total		Level 1		Level 2		Level 3
2024
Assets
Securities available-for-sale
U.S. government treasuries	$	200,328	$	200,328	$	-	$	-
U.S. government agencies		92,265		-		92,265		-
U.S. government mortgage-backed securities		98,159		-		98,159		-
State and political subdivisions		262,855		-		262,855		-
Corporate bonds		69,598		-		69,598		-
Loans receivable		8,096		-		8,096		-
Derivative financial instruments		1,203		-		1,203		-
Liabilities
Derivative financial instruments	$	238	$	-	$	238	$	-
2023
Assets
Securities available-for-sale
U.S. government treasuries	$	200,088	$	200,088	$	-	$	-
U.S. government agencies		92,615		-		92,615		-
U.S. government mortgage-backed securities		101,864		-		101,864		-
State and political subdivisions		269,891		-		269,891		-
Corporate bonds		71,931		-		71,931		-
Loans receivable		8,327		-		8,327		-
Derivative financial instruments		1,225		-		1,225		-
Liabilities
Derivative financial instruments	$	745	$	-	$	745	$	-

Fair Value Measurements, Nonrecurring [Table Text Block]

Description	Total		Level 1		Level 2		Level 3
2024
Collateral dependent loans	$	111	$	-	$	-	$	111
2023
Collateral dependent loans	$	105	$	-	$	-	$	105

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	2024
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Collateral dependent loans	$	111	Evaluation of collateral	Estimation of value		NM*

	2023
	Estimated		Valuation		Range
	Fair Value		Techniques	Unobservable Inputs	(Average)
Collateral dependent loans	$	105	Evaluation of collateral	Estimation of value		NM*

Fair Value, by Balance Sheet Grouping [Table Text Block]

		2024				2023
	Fair Value			Estimated				Estimated
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	111,402	$	111,402	$	55,101	$	55,101
Interest-bearing time deposits	Level 1		7,660		7,239		8,904		8,444
Securities available-for-sale	See previous table		723,205		723,205		736,389		736,389
FHLB and FRB stock	Level 2		3,593		3,593		3,086		3,086
Loans receivable, net	Level 2		1,272,580		1,217,229		1,277,812		1,224,446
Loans held for sale	Level 2		739		739		124		124
Accrued income receivable	Level 1		12,246		12,246		12,953		12,953
Derivative financial instruments	Level 2		1,203		1,203		1,225		1,225
Financial liabilities:
Deposits	Level 2	$	1,872,123	$	1,873,135	$	1,811,831	$	1,812,718
Securities sold under agreements to repurchase	Level 1		53,037		53,037		53,994		53,994
Other borrowings	Level 2		90,284		84,252		110,588		110,376
Accrued interest payable	Level 1		2,571		2,571		4,710		4,710
Derivative financial instruments	Level 2		238		238		745		745

XML

Note 6 - Debt Securities (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Schedule of Available-for-Sale Securities Reconciliation [Table Text Block]

2024:			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	213,801	$	8	$	(13,481	)	$	200,328
U.S. government agencies		99,124		2		(6,861	)		92,265
U.S. government mortgage-backed securities		112,244		1		(14,086	)		98,159
State and political subdivisions		285,410		55		(22,610	)		262,855
Corporate bonds		75,102		5		(5,509	)		69,598
	$	785,681	$	71	$	(62,547	)	$	723,205

2023:			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
U.S. government treasuries	$	213,646	$	29	$	(13,587	)	$	200,088
U.S. government agencies		99,455		2		(6,842	)		92,615
U.S. government mortgage-backed securities		115,988		-		(14,124	)		101,864
State and political subdivisions		292,475		93		(22,677	)		269,891
Corporate bonds		77,139		11		(5,219	)		71,931
	$	798,703	$	135	$	(62,449	)	$	736,389

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	93,493	$	91,733
Due after one year through five years		387,739		361,233
Due after five years through ten years		183,240		163,988
Due after ten years		8,965		8,092
	$	673,437	$	625,046
U.S. government mortgage-backed securities		112,244		98,159
Total	$	785,681	$	723,205

Schedule of Realized Gain (Loss) [Table Text Block]

	Three Months Ended
	March 31,
	2024			2023
Proceeds from sales of securities available-for-sale	$	2,049		$	-
Gross realized gains on securities available-for-sale		-			-
Gross realized losses on securities available-for-sale		(165	)		-

Gain (Loss) on Securities [Table Text Block]

	Less than 12 Months							12 Months or More							Total
2024:	Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government treasuries	$	4,491	$	(19	)		2	$	193,044	$	(13,462	)		118	$	197,535	$	(13,481	)
U.S. government agencies		1,913		(18	)		2		85,896		(6,843	)		75		87,809		(6,861	)
U.S. government mortgage-backed securities		124		(1	)		1		97,580		(14,085	)		155		97,704		(14,086	)
State and political subdivisions		9,083		(125	)		20		247,740		(22,485	)		473		256,823		(22,610	)
Corporate bonds		3,115		(110	)		4		65,492		(5,399	)		81		68,607		(5,509	)
	$	18,726	$	(273	)		29	$	689,752	$	(62,274	)		902	$	708,478	$	(62,547	)

	Less than 12 Months							12 Months or More							Total
2023:	Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses			No. of Securities		Estimated Fair Value		Unrealized Losses
Securities available-for-sale:
U.S. government treasuries	$	-	$	-			-	$	196,432	$	(13,587	)		121	$	196,432	$	(13,587	)
U.S. government agencies		1,986		(11	)		2		90,137		(6,831	)		78		92,123		(6,842	)
U.S. government mortgage-backed securities		467		(12	)		4		101,265		(14,112	)		155		101,732		(14,124	)
State and political subdivisions		9,054		(73	)		18		251,286		(22,604	)		474		260,340		(22,677	)
Corporate bonds		3,117		(108	)		4		67,816		(5,111	)		84		70,933		(5,219	)
	$	14,624	$	(204	)		28	$	706,936	$	(62,245	)		912	$	721,560	$	(62,449	)

XML

Note 7 - Loans Receivable and Credit Disclosures (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Schedule of Composition of Loans Receivable [Table Text Block]

	2024			2023
Real estate - construction	$	70,095		$	63,050
Real estate - 1 to 4 family residential		288,988			289,404
Real estate - multi-family		196,010			195,536
Real estate - commercial		353,061			359,266
Real estate - agricultural		160,457			161,517
Commercial		87,751			89,729
Agricultural		117,254			119,136
Consumer and other		15,854			16,540
		1,289,470			1,294,178
Unallocated portfolio layer basis adjustments1		62			410
Less allowance for credit losses		(16,952	)		(16,776	)
Loans receivable, net	$	1,272,580		$	1,277,812

Financing Receivable, Allowance for Credit Loss [Table Text Block]

	Three Months Ended March 31, 2024
			1-4 Family
	Construction		Residential			Multi-family			Commercial		Agricultural									Consumer
	Real Estate		Real Estate			Real Estate			Real Estate		Real Estate			Commercial			Agricultural			and Other			Total
Balance, December 31, 2023	$	408	$	3,333		$	2,542		$	5,236	$	1,238		$	1,955		$	1,607		$	457		$	16,776
Credit loss expense (benefit) 1		45		(25	)		(5	)		258		(17	)		(43	)		(19	)		(22	)		172
Recoveries of loans charged-off		-		1			-			-		-			1			-			2			4
Loans charged-off		-		-			-			-		-			-			-			-			-
Balance, March 31, 2024	$	453	$	3,309		$	2,537		$	5,494	$	1,221		$	1,913		$	1,588		$	437		$	16,952

	Three Months Ended March 31, 2023
				1-4 Family
	Construction			Residential		Multi-family			Commercial			Agricultural									Consumer
	Real Estate			Real Estate		Real Estate			Real Estate			Real Estate			Commercial			Agricultural			and Other		Total
Balance, December 31, 2022	$	730		$	3,028	$	2,493		$	4,742		$	1,625		$	1,153		$	1,705		$	221	$	15,697
Impact of adopting ASC 326		(395	)		242		(24	)		513			(398	)		449			(61	)		192		518
Credit loss expense (benefit) 2		56			17		99			(54	)		(9	)		183			(88	)		8		212
Recoveries of loans charged-off		-			1		-			5			-			3			-			1		10
Loans charged-off		-			-		-			-			-			(4	)		(164	)		-		(168	)
Balance, March 31, 2023	$	391		$	3,288	$	2,568		$	5,206		$	1,218		$	1,784		$	1,392		$	422	$	16,269

Financing Receivable, Amortized Cost [Table Text Block]

	Primary Type of Collateral
March 31, 2024	Real Estate		Equipment		Other		Total		ACL Allocation
Real estate - construction	$	62	$	-	$	-	$	62	$	-
Real estate - 1 to 4 family residential		666		-		-		666		3
Real estate - multi-family		2,020		-		-		2,020		-
Real estate - commercial		8,698		-		-		8,698		-
Real estate - agricultural		444		-		-		444		-
Commercial		114		2		95		211		93
Agricultural		233		389		402		1,024		-
Consumer and other		-		-		7		7		-
	$	12,237	$	391	$	504	$	13,132	$	96

	Primary Type of Collateral
December 31, 2023	Real Estate		Equipment		Other		Total		ACL Allocation
Real estate - construction	$	66	$	-	$	-	$	66	$	-
Real estate - 1 to 4 family residential		678		-		-		678		10
Real estate - multi-family		2,034		-		-		2,034		-
Real estate - commercial		8,993		-		-		8,993		-
Real estate - agricultural		449		-		-		449		-
Commercial		118		-		101		219		96
Agricultural		239		669		402		1,310		-
Consumer and other		-		-		-		-		-
	$	12,577	$	669	$	503	$	13,749	$	106

Financing Receivable, Nonaccrual [Table Text Block]

	Total Nonaccrual				Nonaccrual with no ACL
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Real estate - construction	$	62	$	66	$	62	$	66
Real estate - 1 to 4 family residential		666		678		552		563
Real estate - multi-family		2,020		2,034		2,020		2,034
Real estate - commercial		8,698		8,976		8,698		8,976
Real estate - agricultural		444		449		444		449
Commercial		258		268		165		172
Agricultural		1,024		1,310		1,024		1,310
Consumer and other		18		13		7		-
	$	13,190	$	13,794	$	12,972	$	13,570

Financing Receivable, Modified With Term Extension [Table Text Block]

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Term Extension
	Amortized Cost Basis at		% of Total Segment of
	March 31, 2024		Financing Receivable
Loan Type
Agricultural	$	336		0.3	%

Term Extension
Loan Type	Financial Effect
Agricultural	Added a weighted-average 8 years to the life of loans, which reduced monthly payment amounts for the borrowers

Financing Receivable, Past Due [Table Text Block]

2024			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	-	$	-	$	-	$	70,095	$	70,095	$	-
Real estate - 1 to 4 family residential		978		309		1,287		287,701		288,988		96
Real estate - multi-family		-		982		982		195,028		196,010		-
Real estate - commercial		118		-		118		352,943		353,061		-
Real estate - agricultural		111		-		111		160,346		160,457		-
Commercial		213		95		308		87,443		87,751		-
Agricultural		134		403		537		116,717		117,254		14
Consumer and other		4		7		11		15,843		15,854		-
	$	1,558	$	1,796	$	3,354	$	1,286,116	$	1,289,470	$	110

2023			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing
Real estate - construction	$	359	$	66	$	425	$	62,625	$	63,050	$	-
Real estate - 1 to 4 family residential		1,020		302		1,322		288,082		289,404		3
Real estate - multi-family		-		983		983		194,553		195,536		-
Real estate - commercial		119		106		225		359,041		359,266		106
Real estate - agricultural		-		-		-		161,517		161,517		-
Commercial		559		98		657		89,072		89,729		-
Agricultural		169		529		698		118,438		119,136		-
Consumer and other		16		-		16		16,524		16,540		-
	$	2,242	$	2,084	$	4,326	$	1,289,852	$	1,294,178	$	109

Financing Receivable, Amortized Cost by Year of Origination [Table Text Block]

March 31, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Real estate - construction
Pass	$	9,726	$	43,869	$	13,901	$	246	$	11	$	324	$	1,877	$	69,954
Watch				79		-		-		-		-		-		79
Special Mention				-		-		-		-		-		-		-
Substandard				-		-		-		-		-		-		-
Substandard-Impaired		62		-		-		-		-		-		-		62
Total	$	9,788	$	43,948	$	13,901	$	246	$	11	$	324	$	1,877	$	70,095
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - 1-4 family residential
Pass	$	9,509	$	52,327	$	64,412	$	58,158	$	46,192	$	23,741	$	18,245	$	272,584
Watch		83		1,513		293		10,265		915		350		82		13,501
Special Mention		-		-		-		-		299		-		-		299
Substandard		-		444		17		1,337		47		93		-		1,938
Substandard-Impaired		74		114		-		142		-		336		-		666
Total	$	9,666	$	54,398	$	64,722	$	69,902	$	47,453	$	24,520	$	18,327	$	288,988
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - multi-family
Pass	$	1,872	$	18,825	$	51,511	$	46,627	$	39,806	$	13,723	$	4,751	$	177,115
Watch		-		5,053		1,420		8,129		-		-		-		14,602
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		2,274		-		-		2,274
Substandard-Impaired		-		983		-		-		-		1,036		-		2,019
Total	$	1,872	$	24,861	$	52,931	$	54,756	$	42,080	$	14,759	$	4,751	$	196,010
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - commercial
Pass	$	5,600	$	35,237	$	79,514	$	45,635	$	65,375	$	31,842	$	3,323	$	266,526
Watch		111		8,309		13,442		14,533		13,938		651		2,542		53,526
Special Mention		-		-		2,529		6,205		2,978		1,035		-		12,747
Substandard		-		847		-		10,190		544		-		-		11,581
Substandard-Impaired		-		8,326		-		-		-		355		-		8,681
Total	$	5,711	$	52,719	$	95,485	$	76,563	$	82,835	$	33,883	$	5,865	$	353,061
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - agricultural
Pass	$	7,570	$	20,913	$	30,100	$	31,682	$	24,924	$	26,367	$	1,594	$	143,150
Watch		-		4,227		378		2,226		2,699		3,581		-		13,111
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		2,279		1,439		113		-		214		-		4,045
Substandard-Impaired		-		-		-		151		-		-		-		151
Total	$	7,570	$	27,419	$	31,917	$	34,172	$	27,623	$	30,162	$	1,594	$	160,457
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

March 31, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Commercial
Pass	$	5,216	$	21,106	$	11,818	$	9,732	$	1,923	$	3,821	$	27,287	$	80,903
Watch		632		539		275		64		368		203		1,746		3,827
Special Mention		-		-		-		-		-		-		-		-
Substandard		599		-		209		-		417		-		1,538		2,763
Substandard-Impaired		44		46		-		4		93		71		-		258
Total	$	6,491	$	21,691	$	12,302	$	9,800	$	2,801	$	4,095	$	30,571	$	87,751
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural
Pass	$	8,212	$	11,314	$	6,741	$	4,686	$	2,247	$	881	$	64,304	$	98,385
Watch		4,280		579		374		347		388		212		10,420		16,600
Special Mention		-		-		-		-		-		-		-		-
Substandard		1,420		46		14		25		43		-		-		1,548
Substandard-Impaired		-		96		-		236		-		-		389		721
Total	$	13,912	$	12,035	$	7,129	$	5,294	$	2,678	$	1,093	$	75,113	$	117,254
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer and other
Pass	$	1,158	$	5,847	$	3,262	$	2,476	$	1,930	$	1,019	$	118	$	15,810
Watch		15		1		-		-		-		-		-		16
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		8		-		-		-		-		-		8
Substandard-Impaired		-		-		9		-		11		-		-		20
Total	$	1,173	$	5,856	$	3,271	$	2,476	$	1,941	$	1,019	$	118	$	15,854
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total loans
Pass	$	48,863	$	209,438	$	261,259	$	199,242	$	182,408	$	101,718	$	121,499	$	1,124,427
Watch		5,121		20,300		16,182		35,564		18,308		4,997		14,790		115,262
Special Mention		-		-		2,529		6,205		3,277		1,035		-		13,046
Substandard		2,019		3,624		1,679		11,665		3,325		307		1,538		24,157
Substandard-Impaired		180		9,565		9		533		104		1,798		389		12,578
Total	$	56,183	$	242,927	$	281,658	$	253,209	$	207,422	$	109,855	$	138,216	$	1,289,470
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Real estate - construction
Pass	$	45,404	$	14,501	$	746	$	11	$	-	$	325	$	1,917	$	62,904
Watch		80		-		-		-		-		-		-		80
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard-Impaired		-		66		-		-		-		-		-		66
Total	$	45,484	$	14,567	$	746	$	11	$	-	$	325	$	1,917	$	63,050
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - 1-4 family residential
Pass	$	55,051	$	66,190	$	59,250	$	47,865	$	8,607	$	17,154	$	18,649	$	272,766
Watch		1,608		298		10,483		1,226		-		358		27		14,000
Special Mention		-		-		-		-		-		-		-		-
Substandard		448		18		1,350		47		33		64		-		1,960
Substandard-Impaired		115		-		140		-		199		144		80		678
Total	$	57,222	$	66,506	$	71,223	$	49,138	$	8,839	$	17,720	$	18,756	$	289,404
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - multi-family
Pass	$	18,436	$	51,928	$	47,161	$	40,201	$	13,542	$	694	$	5,020	$	176,982
Watch		4,603		1,427		8,192		-		-		-		-		14,222
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		2,298		-		-		-		2,298
Substandard-Impaired		983		-		-		-		1,051		-		-		2,034
Total	$	24,022	$	53,355	$	55,353	$	42,499	$	14,593	$	694	$	5,020	$	195,536
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - commercial
Pass	$	35,133	$	81,342	$	51,598	$	66,467	$	20,006	$	13,122	$	2,929	$	270,597
Watch		8,379		13,580		14,669		14,607		78		583		2,988		54,884
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		897		-		4,822		551		-		106		-		6,376
Substandard-Impaired		8,517		-		99		-		360		-		-		8,976
Total	$	52,926	$	97,453	$	83,041	$	84,631	$	21,487	$	13,811	$	5,917	$	359,266
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate - agricultural
Pass	$	22,469	$	30,738	$	32,893	$	27,733	$	6,039	$	22,850	$	2,073	$	144,795
Watch		4,163		379		2,263		1,760		333		3,601		-		12,499
Special Mention		-		-		-		-		-		-		-		-
Substandard		2,302		1,439		114		-		-		214		-		4,069
Substandard-Impaired		-		-		154		-		-		-		-		154
Total	$	28,934	$	32,556	$	35,424	$	29,493	$	6,372	$	26,665	$	2,073	$	161,517
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Commercial
Pass	$	23,904	$	12,645	$	10,378	$	2,087	$	2,434	$	1,578	$	29,752	$	82,778
Watch		860		295		119		423		93		137		1,996		3,923
Special Mention		-		-		-		-		-		-		-		-
Substandard		600		256		-		421		-		-		1,484		2,761
Substandard-Impaired		94		-		5		96		-		72		-		267
Total	$	25,458	$	13,196	$	10,502	$	3,027	$	2,527	$	1,787	$	33,232	$	89,729
Current-period gross writeoffs	$	-	$	-	$	-	$	33	$	-	$	4	$	-	$	37
Agricultural
Pass	$	14,614	$	8,395	$	5,459	$	2,858	$	400	$	608	$	77,448	$	109,782
Watch		1,107		340		288		18		18		194		5,419		7,384
Special Mention		-		-		-		-		-		-		-		-
Substandard		866		14		25		58		-		-		-		963
Substandard-Impaired		95		140		383		-		-		-		389		1,007
Total	$	16,682	$	8,889	$	6,155	$	2,934	$	418	$	802	$	83,256	$	119,136
Current-period gross writeoffs	$	39	$	74	$	90	$	-	$	-	$	-	$	-	$	203
Consumer and other
Pass	$	6,801	$	3,719	$	2,701	$	2,071	$	352	$	731	$	15	$	16,390
Watch		127		-		-		-		-		-		-		127
Special Mention		-		-		-		-		-		-		-		-
Substandard		10		-		-		-		-		-		-		10
Substandard-Impaired		-		-		-		13		-		-		-		13
Total	$	6,938	$	3,719	$	2,701	$	2,084	$	352	$	731	$	15	$	16,540
Current-period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	5	$	-	$	5
Total loans
Pass	$	221,812	$	269,458	$	210,186	$	189,293	$	51,380	$	57,062	$	137,803	$	1,136,994
Watch		20,927		16,319		36,014		18,034		522		4,873		10,430		107,119
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		5,123		1,727		6,311		3,375		33		384		1,484		18,437
Substandard-Impaired		9,804		206		781		109		1,610		216		469		13,195
Total	$	257,666	$	290,241	$	265,145	$	213,817	$	54,588	$	62,535	$	150,186	$	1,294,178
Current-period gross writeoffs	$	39	$	74	$	90	$	33	$	-	$	9	$	-	$	245

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Note 8 - Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Finite-Lived Intangible Assets Amortization Expense [Table Text Block]

	2024				2023
	Gross		Accumulated		Gross		Accumulated
	Amount		Amortization		Amount		Amortization
Core deposit intangible asset	$	6,411	$	5,069	$	6,411	$	4,982
Customer list		-		-		535		535
Total	$	6,411	$	5,069	$	6,946	$	5,517

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Three Months Ended
	March 31,
	2024			2023
Beginning intangible assets, net	$	1,429		$	1,931
Amortization		(87	)		(130	)
Ending intangible assets, net	$	1,342		$	1,801

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2024		250
2025		301
2026		268
2027		240
2028		190
2029		93
Total	$	1,342

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Note 9 - Pledged Collateral Related to Securities Sold Under Repurchase Agreements (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

	2024		2023
Securities sold under agreements to repurchase:
U.S. government treasuries	$	23,808	$	22,877
U.S. government agencies		44,792		44,960
U.S. government mortgage-backed securities		7,590		7,369
Total pledged collateral	$	76,190	$	75,206

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Note 11 - Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Schedule of Derivative Instruments [Table Text Block]

	Notional Amount		Fair Value			Balance Sheet Category
March 31, 2024
Interest rate swaps	$	8,831	$	1,027		Other assets
Interest rate swaps		25,000		(62	)	Other liabilities
December 31, 2023
Interest rate swaps	$	8,930	$	891		Other assets
Interest rate swaps		25,000		(411	)	Other liabilities

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

				Cumulative Amount of Fair Value
	Location in the consolidated	Carrying Amount of		Hedging Adjustment Included in
	balance sheet	the Hedged Assets		Carrying Amount of Hedged Assets
March 31, 2024
Interest rate swaps	Loans receivable, net	$	57,073	$	(965	)
December 31, 2023
Interest rate swaps	Loans receivable, net	$	58,588	$	(481	)

							Weighted Average			Weighted Average
	Notional Amount		Fair Value			Balance Sheet Category	Receive Rate			Pay Rate
March 31, 2024
Customer interest rate swaps	$	12,373	$	176		Other assets		7.32	%		5.62	%
Customer interest rate swaps		12,373		(176	)	Other liabilities		5.62	%		7.32	%
December 31, 2023
Customer interest rate swaps	$	11,353	$	334		Other assets		7.36	%		5.62	%
Customer interest rate swaps		11,353		(334	)	Other liabilities		5.62	%		7.36	%

XML

Note 12 - Regulatory Matters (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of March 31, 2024:
Total capital (to risk-weighted assets):
Consolidated	$	218,220		14.1	%	$	162,803		10.50	%		N/A		N/A
Boone Bank & Trust		16,203		12.8			13,285		10.50			12,652		10.0	%
First National Bank		111,844		14.1			83,450		10.50			79,477		10.0
Iowa State Savings Bank		27,014		16.0			17,674		10.50			16,833		10.0
Reliance State Bank		28,842		12.3			24,697		10.50			23,521		10.0
State Bank & Trust		22,271		16.0			14,603		10.50			13,907		10.0
United Bank & Trust		13,107		15.5			8,877		10.50			8,454		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	200,184		12.9	%	$	131,793		8.50	%		N/A		N/A
Boone Bank & Trust		15,233		12.0			10,754		8.50			10,122		8.0	%
First National Bank		102,355		12.9			67,555		8.50			63,581		8.0
Iowa State Savings Bank		24,930		14.8			14,308		8.50			13,466		8.0
Reliance State Bank		26,076		11.1			19,993		8.50			18,817		8.0
State Bank & Trust		20,627		14.8			11,821		8.50			11,126		8.0
United Bank & Trust		12,050		14.3			7,186		8.50			6,763		8.0
Tier 1 capital (to average-assets):
Consolidated	$	200,184		9.0	%	$	88,970		4.00	%		N/A		N/A
Boone Bank & Trust		15,233		9.3			6,537		4.00			8,171		5.0	%
First National Bank		102,355		8.9			45,931		4.00			57,414		5.0
Iowa State Savings Bank		24,930		9.5			10,511		4.00			13,139		5.0
Reliance State Bank		26,076		8.4			12,344		4.00			15,430		5.0
State Bank & Trust		20,627		9.7			8,463		4.00			10,579		5.0
United Bank & Trust		12,050		9.7			4,951		4.00			6,188		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	200,184		12.9	%	$	108,535		7.00	%		N/A		N/A
Boone Bank & Trust		15,233		12.0			8,857		7.00			8,224		6.5	%
First National Bank		102,355		12.9			55,634		7.00			51,660		6.5
Iowa State Savings Bank		24,930		14.8			11,783		7.00			10,941		6.5
Reliance State Bank		26,076		11.1			16,465		7.00			15,289		6.5
State Bank & Trust		20,627		14.8			9,735		7.00			9,040		6.5
United Bank & Trust		12,050		14.3			5,918		7.00			5,495		6.5

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2023:
Total capital (to risk-weighted assets):
Consolidated	$	218,049		14.0	%	$	164,005		10.50	%		N/A		N/A
Boone Bank & Trust		16,232		13.6			12,510		10.50			11,914		10.0	%
First National Bank		112,057		13.9			84,863		10.50			80,822		10.0
Iowa State Savings Bank		26,691		15.7			17,854		10.50			17,004		10.0
Reliance State Bank		28,755		11.9			25,293		10.50			24,089		10.0
State Bank & Trust		22,283		16.0			14,597		10.50			13,902		10.0
United Bank & Trust		12,989		16.1			8,486		10.50			8,082		10.0
Tier 1 capital (to risk-weighted assets):
Consolidated	$	200,187		12.8	%	$	132,766		8.50	%		N/A		N/A
Boone Bank & Trust		15,309		12.8			10,127		8.50			9,532		8.0	%
First National Bank		102,634		12.7			68,699		8.50			64,658		8.0
Iowa State Savings Bank		24,619		14.5			14,453		8.50			13,603		8.0
Reliance State Bank		25,937		10.8			20,476		8.50			19,271		8.0
State Bank & Trust		20,676		14.9			11,817		8.50			11,122		8.0
United Bank & Trust		11,979		14.8			6,870		8.50			6,466		8.0
Tier 1 capital (to average-assets):
Consolidated	$	200,187		9.0	%	$	88,992		4.00	%		N/A		N/A
Boone Bank & Trust		15,309		9.6			6,393		4.00			7,991		5.0	%
First National Bank		102,634		8.8			46,878		4.00			58,597		5.0
Iowa State Savings Bank		24,619		9.6			10,234		4.00			12,792		5.0
Reliance State Bank		25,937		8.3			12,464		4.00			15,580		5.0
State Bank & Trust		20,676		9.6			8,573		4.00			10,717		5.0
United Bank & Trust		11,979		9.5			5,039		4.00			6,299		5.0
Common equity tier 1 capital (to risk-weighted assets):
Consolidated	$	200,187		12.8	%	$	109,337		7.00	%		N/A		N/A
Boone Bank & Trust		15,309		12.8			8,340		7.00			7,744		6.5	%
First National Bank		102,634		12.7			56,576		7.00			52,534		6.5
Iowa State Savings Bank		24,619		14.5			11,903		7.00			11,052		6.5
Reliance State Bank		25,937		10.8			16,862		7.00			15,658		6.5
State Bank & Trust		20,676		14.9			9,731		7.00			9,036		6.5
United Bank & Trust		11,979		14.8			5,657		7.00			5,253		6.5

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Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Apr. 25, 2024
Goodwill, Impairment Loss	$ 0
Subsequent Event [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 5,000

XML

Note 2 - Dividends (Details Textual) - $ / shares		3 Months Ended
	Feb. 14, 2024	Mar. 31, 2024	Mar. 31, 2023
Common Stock, Dividends, Per Share, Declared	$ 0.27	$ 0.27	$ 0.27

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Note 3 - Earnings Per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Weighted Average Number of Shares Outstanding, Basic	8,992,167	8,992,167
Weighted Average Number of Shares Outstanding, Diluted, Adjustment (in shares)	0	0

XML

Note 5 - Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available for sale securities	$ 723,205	$ 736,389
US Treasury Securities [Member]
Available for sale securities	200,328	200,088
US Government Agencies Debt Securities [Member]
Available for sale securities	92,265	92,615
Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]
Available for sale securities	98,159	101,864
US States and Political Subdivisions Debt Securities [Member]
Available for sale securities	262,855	269,891
Corporate Debt Securities [Member]
Available for sale securities	69,598	71,931
Fair Value, Recurring [Member]
Loans	8,096	8,327
Derivative financial instruments		1,225
Derivative financial instruments, liabilities		745
Fair Value, Recurring [Member] | Other Assets [Member]
Derivative financial instruments	1,203
Fair Value, Recurring [Member] | Other Liabilities [Member]
Derivative financial instruments, liabilities	238
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Loans	0	0
Derivative financial instruments		0
Derivative financial instruments, liabilities		0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member]
Derivative financial instruments	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Liabilities [Member]
Derivative financial instruments, liabilities	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Loans	8,096	8,327
Derivative financial instruments		1,225
Derivative financial instruments, liabilities		745
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member]
Derivative financial instruments	1,203
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Liabilities [Member]
Derivative financial instruments, liabilities	238
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Loans	0	0
Derivative financial instruments		0
Derivative financial instruments, liabilities		0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Assets [Member]
Derivative financial instruments	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Liabilities [Member]
Derivative financial instruments, liabilities	0
Fair Value, Recurring [Member] | US Treasury Securities [Member]
Available for sale securities	200,328	200,088
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities	200,328	200,088
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member]
Available for sale securities	92,265	92,615
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities	92,265	92,615
Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]
Available for sale securities	98,159	101,864
Fair Value, Recurring [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities	98,159	101,864
Fair Value, Recurring [Member] | Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member]
Available for sale securities	262,855	269,891
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities	262,855	269,891
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | Corporate Debt Securities [Member]
Available for sale securities	69,598	71,931
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available for sale securities	0	0
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Available for sale securities	69,598	71,931
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Available for sale securities	$ 0	$ 0

XML

Note 5 - Fair Value Measurements - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans	$ 111	$ 105
Fair Value, Inputs, Level 1 [Member]
Loans	0	0
Fair Value, Inputs, Level 2 [Member]
Loans	0	0
Fair Value, Inputs, Level 3 [Member]
Loans	$ 111	$ 105

XML

Note 5 - Fair Value Measurements - Fair Value Quantitative Information (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans	$ 111	$ 105
Fair Value, Inputs, Level 3 [Member]
Loans	111	105
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loan [Member]
Loans	$ 111	$ 105

XML

Note 5 - Fair Value Measurements - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Securities available-for-sale	$ 723,205	$ 736,389
Estimate of Fair Value Measurement [Member]
Securities available-for-sale	723,205	736,389
Reported Value Measurement [Member]
Securities available-for-sale	736,389	723,205
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Cash and cash equivalents	111,402	55,101
Accrued income receivable	12,246	12,953
Securities sold under agreements to repurchase	53,037	53,994
Accrued interest payable	2,571	4,710
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member]
Cash and cash equivalents	55,101	111,402
Accrued income receivable	12,953	12,246
Securities sold under agreements to repurchase	53,994	53,037
Accrued interest payable	4,710	2,571
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Interest-bearing time deposits	7,660	8,904
FHLB and FRB stock	3,593	3,086
Loans receivable, net	1,272,580	1,277,812
Loans held for sale	739	124
Derivative financial instruments	1,203	1,225
Deposits	1,872,123	1,811,831
FHLB advances and other borrowings	90,284	110,588
Derivative financial instruments, liabilities	238	745
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member]
Interest-bearing time deposits	8,444	7,239
FHLB and FRB stock	3,086	3,593
Loans receivable, net	1,224,446	1,217,229
Loans held for sale	124	739
Derivative financial instruments	1,225	1,203
Deposits	1,812,718	1,873,135
FHLB advances and other borrowings	110,376	84,252
Derivative financial instruments, liabilities	$ 745	$ 238

XML

Note 6 - Debt Securities (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale, Term	3 years 5 months 1 day
Debt Securities, Available-for-Sale, Restricted	$ 388,700	$ 374,400
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	62,547	62,449
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss	$ 4,000	$ 3,500

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Note 6 - Debt Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized cost	$ 785,681	$ 798,703
Gross unrealized gains	71	135
Gross unrealized losses	(62,547)	(62,449)
Estimated fair value	723,205	736,389
State and political subdivisions	785,681	798,703
US Treasury Securities [Member]
Amortized cost	213,801	213,646
Gross unrealized gains	8	29
Gross unrealized losses	(13,481)	(13,587)
Estimated fair value	200,328	200,088
State and political subdivisions	213,801	213,646
US Government Agencies Debt Securities [Member]
Amortized cost	99,124	99,455
Gross unrealized gains	2	2
Gross unrealized losses	(6,861)	(6,842)
Estimated fair value	92,265	92,615
State and political subdivisions	99,124	99,455
Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]
Amortized cost	112,244	115,988
Gross unrealized gains	1	0
Gross unrealized losses	(14,086)	(14,124)
Estimated fair value	98,159	101,864
State and political subdivisions	112,244	115,988
US States and Political Subdivisions Debt Securities [Member]
Amortized cost	285,410	292,475
Gross unrealized gains	55	93
Gross unrealized losses	(22,610)	(22,677)
Estimated fair value	262,855	269,891
State and political subdivisions	285,410	292,475
Corporate Debt Securities [Member]
Amortized cost	75,102	77,139
Gross unrealized gains	5	11
Gross unrealized losses	(5,509)	(5,219)
Estimated fair value	69,598	71,931
State and political subdivisions	$ 75,102	$ 77,139

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Note 6 - Debt Securities - Debt Securities Available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Due in one year or less, Amortized cost	$ 93,493
Due in one year or less, Estimated fair value	91,733
Due after one year through five years, Amortized cost	387,739
Due after one year through five years, Estimated fair value	361,233
Due after five years through ten years, Amortized cost	183,240
Due after five years through ten years, Estimated fair value	163,988
Due after ten years, Amortized cost	8,965
Due after ten years, Estimated fair value	8,092
Securities, amortized cost	673,437
Securities, fair value	625,046
U.S. government mortgage-backed securities, amortized cost	112,244
U.S. government mortgage-backed securities, fair value	98,159
Total, amortized cost	785,681	$ 798,703
Securities available-for-sale	$ 723,205	$ 736,389

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Note 6 - Debt Securities - Proceeds, Gains and Losses From Securities Available-for-sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Proceeds from sales of securities available-for-sale	$ 2,049	$ 0
Gross realized gains on securities available-for-sale	0	0
Gross realized losses on securities available-for-sale	$ (165)	$ 0

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Note 6 - Debt Securities - Securities Available-for-sale Continuous Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Less than 12 months, estimated fair value	$ 18,726	$ 14,624
Less than 12 months, unrealized losses	$ (273)	$ (204)
Less than 12 months, securities	29	28
12 months or more, estimated fair value	$ 689,752	$ 706,936
12 months or more, unrealized losses	$ (62,274)	$ (62,245)
12 months or more, securities	902	912
Total estimated fair value	$ 708,478	$ 721,560
Total unrealized losses	(62,547)	(62,449)
US Treasury Securities [Member]
Less than 12 months, estimated fair value	4,491	0
Less than 12 months, unrealized losses	$ (19)	$ 0
Less than 12 months, securities	2	0
12 months or more, estimated fair value	$ 193,044	$ 196,432
12 months or more, unrealized losses	$ (13,462)	$ (13,587)
12 months or more, securities	118	121
Total estimated fair value	$ 197,535	$ 196,432
Total unrealized losses	(13,481)	(13,587)
US Government Agencies Debt Securities [Member]
Less than 12 months, estimated fair value	1,913	1,986
Less than 12 months, unrealized losses	$ (18)	$ (11)
Less than 12 months, securities	2	2
12 months or more, estimated fair value	$ 85,896	$ 90,137
12 months or more, unrealized losses	$ (6,843)	$ (6,831)
12 months or more, securities	75	78
Total estimated fair value	$ 87,809	$ 92,123
Total unrealized losses	(6,861)	(6,842)
Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member]
Less than 12 months, estimated fair value	124	467
Less than 12 months, unrealized losses	$ (1)	$ (12)
Less than 12 months, securities	1	4
12 months or more, estimated fair value	$ 97,580	$ 101,265
12 months or more, unrealized losses	$ (14,085)	$ (14,112)
12 months or more, securities	155	155
Total estimated fair value	$ 97,704	$ 101,732
Total unrealized losses	(14,086)	(14,124)
US States and Political Subdivisions Debt Securities [Member]
Less than 12 months, estimated fair value	9,083	9,054
Less than 12 months, unrealized losses	$ (125)	$ (73)
Less than 12 months, securities	20	18
12 months or more, estimated fair value	$ 247,740	$ 251,286
12 months or more, unrealized losses	$ (22,485)	$ (22,604)
12 months or more, securities	473	474
Total estimated fair value	$ 256,823	$ 260,340
Total unrealized losses	(22,610)	(22,677)
Corporate Debt Securities [Member]
Less than 12 months, estimated fair value	3,115	3,117
Less than 12 months, unrealized losses	$ (110)	$ (108)
Less than 12 months, securities	4	4
12 months or more, estimated fair value	$ 65,492	$ 67,816
12 months or more, unrealized losses	$ (5,399)	$ (5,111)
12 months or more, securities	81	84
Total estimated fair value	$ 68,607	$ 70,933
Total unrealized losses	$ (5,509)	$ (5,219)

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Note 7 - Loans Receivable and Credit Disclosures (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Financing Receivable, Accrued Interest, after Allowance for Credit Loss	$ 8,300		$ 9,400
Off-Balance-Sheet, Credit Loss, Liability	1,100		$ 1,100
Off-Balance-Sheet, Credit Loss, Liability, Credit Loss Expense (Reversal)	3	$ (63)
Off-Balance-Sheet, Credit Loss, Liability, Credit Loss Expense (Reversal)	(3)	63
Financing Receivable, Nonaccrual, Interest Income	$ 239	$ 179
Financing Receivable, Modified, Subsequent Default, Number of Contracts	2
Financing Receivable, Modified, Subsequent Default	$ 42

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Note 7 - Loans Receivable and Credit Disclosures - Composition of Loans Receivable (Details) - USD ($) $ in Thousands		Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Loans receivable		$ 1,289,470	$ 1,294,178
Unallocated portfolio layer basis adjustments1	[1]	(62)	(410)
Less allowance for credit losses		(16,952)	(16,776)	$ (16,269)	$ (15,697)
Total loans receivable, net		1,272,580	1,277,812
Construction Real Estate [Member]
Loans receivable		70,095	63,050
Less allowance for credit losses		(453)	(408)	(391)	(730)
Family Residential Real Estate 1-4 [Member]
Loans receivable		288,988	289,404
Less allowance for credit losses		(3,309)	(3,333)	(3,288)	(3,028)
Multifamily [Member]
Loans receivable		196,010	195,536
Less allowance for credit losses		(2,537)	(2,542)	(2,568)	(2,493)
Commercial Real Estate Portfolio Segment [Member]
Loans receivable		353,061	359,266
Less allowance for credit losses		(5,494)	(5,236)	(5,206)	(4,742)
Agriculture Real Estate [Member]
Loans receivable		160,457	161,517
Less allowance for credit losses		(1,221)	(1,238)	(1,218)	(1,625)
Commercial Portfolio Segment [Member]
Loans receivable		87,751	89,729
Less allowance for credit losses		(1,913)	(1,955)	(1,784)	(1,153)
Agriculture [Member]
Loans receivable		117,254	119,136
Less allowance for credit losses		(1,588)	(1,607)	(1,392)	(1,705)
Consumer and Other [Member]
Loans receivable		15,854	16,540
Less allowance for credit losses		$ (437)	$ (457)	$ (422)	$ (221)

[1] This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under the portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 10 (“Derivative Financial Instruments”) for additional information.

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Note 7 - Loans Receivable and Credit Disclosures - Activity in Allowance for Loan Losses (Details) - USD ($)	3 Months Ended				12 Months Ended
	Mar. 31, 2024		Mar. 31, 2023		Dec. 31, 2023
Balance, beginning	$ 16,776,000		$ 15,697,000		$ 15,697,000
Credit loss expense (benefit)	172,000	[1]	212,000	[2]
Recoveries of loans charged-off	4,000		10,000
Loans charged-off	0		(168,000)		(245,000)
Balance, ending	16,952,000		16,269,000		16,776,000
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			518,000		518,000
Construction Real Estate [Member]
Balance, beginning	408,000		730,000		730,000
Credit loss expense (benefit)	45,000	[1]	56,000	[2]
Recoveries of loans charged-off	0		0
Loans charged-off	0		0		0
Balance, ending	453,000		391,000		408,000
Construction Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			(395,000)		(395,000)
Family Residential Real Estate 1-4 [Member]
Balance, beginning	3,333,000		3,028,000		3,028,000
Credit loss expense (benefit)	(25,000)	[1]	17,000	[2]
Recoveries of loans charged-off	1,000		1,000
Loans charged-off	0		0		0
Balance, ending	3,309,000		3,288,000		3,333,000
Family Residential Real Estate 1-4 [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			242,000		242,000
Multifamily [Member]
Balance, beginning	2,542,000		2,493,000		2,493,000
Credit loss expense (benefit)	(5,000)	[1]	99,000	[2]
Recoveries of loans charged-off	0		0
Loans charged-off	0		0		0
Balance, ending	2,537,000		2,568,000		2,542,000
Multifamily [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			(24,000)		(24,000)
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning	5,236,000		4,742,000		4,742,000
Credit loss expense (benefit)	258,000	[1]	(54,000)	[2]
Recoveries of loans charged-off	0		5,000
Loans charged-off	0		0		0
Balance, ending	5,494,000		5,206,000		5,236,000
Commercial Real Estate Portfolio Segment [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			513,000		513,000
Agriculture Real Estate [Member]
Balance, beginning	1,238,000		1,625,000		1,625,000
Credit loss expense (benefit)	(17,000)	[1]	(9,000)	[2]
Recoveries of loans charged-off	0		0
Loans charged-off	0		0		0
Balance, ending	1,221,000		1,218,000		1,238,000
Agriculture Real Estate [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			(398,000)		(398,000)
Commercial Portfolio Segment [Member]
Balance, beginning	1,955,000		1,153,000		1,153,000
Credit loss expense (benefit)	(43,000)	[1]	183,000	[2]
Recoveries of loans charged-off	1,000		3,000
Loans charged-off	0		(4,000)		(37,000)
Balance, ending	1,913,000		1,784,000		1,955,000
Commercial Portfolio Segment [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			449,000		449,000
Agriculture [Member]
Balance, beginning	1,607,000		1,705,000		1,705,000
Credit loss expense (benefit)	(19,000)	[1]	(88,000)	[2]
Recoveries of loans charged-off	0		0
Loans charged-off	0		(164,000)		(203,000)
Balance, ending	1,588,000		1,392,000		1,607,000
Agriculture [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			(61,000)		(61,000)
Consumer and Other [Member]
Balance, beginning	457,000		221,000		221,000
Credit loss expense (benefit)	(22,000)	[1]	8,000	[2]
Recoveries of loans charged-off	2,000		1,000
Loans charged-off	0		0		(5,000)
Balance, ending	$ 437,000		422,000		457,000
Consumer and Other [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, beginning			$ 192,000		$ 192,000

[1] The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $3 thousand related to off-balance sheet credit exposures.

[2] The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense of $63 thousand related to off-balance sheet credit exposures.

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Note 7 - Loans Receivable and Credit Disclosures - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Allowance for credit loss	$ 16,952	$ 16,776	$ 16,269	$ 15,697
Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	12,237	12,577
Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	391	669
Other [Member]
Financing Receivable Individually Evaluated For Impairment	504	503
Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	13,132	13,749
Allowance for credit loss	96	106
Construction Real Estate [Member]
Allowance for credit loss	453	408	391	730
Construction Real Estate [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	62	66
Construction Real Estate [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Construction Real Estate [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Construction Real Estate [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	62	66
Allowance for credit loss	0	0
Family Residential Real Estate 1-4 [Member]
Allowance for credit loss	3,309	3,333	3,288	3,028
Family Residential Real Estate 1-4 [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	666	678
Family Residential Real Estate 1-4 [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Family Residential Real Estate 1-4 [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Family Residential Real Estate 1-4 [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	666	678
Allowance for credit loss	3	10
Multifamily [Member]
Allowance for credit loss	2,537	2,542	2,568	2,493
Multifamily [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	2,020	2,034
Multifamily [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Multifamily [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Multifamily [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	2,020	2,034
Allowance for credit loss	0	0
Commercial Real Estate Portfolio Segment [Member]
Allowance for credit loss	5,494	5,236	5,206	4,742
Commercial Real Estate Portfolio Segment [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	8,698	8,993
Commercial Real Estate Portfolio Segment [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Commercial Real Estate Portfolio Segment [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Commercial Real Estate Portfolio Segment [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	8,698	8,993
Allowance for credit loss	0	0
Agriculture Real Estate [Member]
Allowance for credit loss	1,221	1,238	1,218	1,625
Agriculture Real Estate [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	444	449
Agriculture Real Estate [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Agriculture Real Estate [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Agriculture Real Estate [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	444	449
Allowance for credit loss	0	0
Commercial Portfolio Segment [Member]
Allowance for credit loss	1,913	1,955	1,784	1,153
Commercial Portfolio Segment [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	114	118
Commercial Portfolio Segment [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	2	0
Commercial Portfolio Segment [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	95	101
Commercial Portfolio Segment [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	211	219
Allowance for credit loss	93	96
Agriculture [Member]
Allowance for credit loss	1,588	1,607	1,392	1,705
Agriculture [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	233	239
Agriculture [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	389	669
Agriculture [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	402	402
Agriculture [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	1,024	1,310
Allowance for credit loss	0	0
Consumer and Other [Member]
Allowance for credit loss	437	457	$ 422	$ 221
Consumer and Other [Member] | Real Estate [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Consumer and Other [Member] | Equipment [Member]
Financing Receivable Individually Evaluated For Impairment	0	0
Consumer and Other [Member] | Other [Member]
Financing Receivable Individually Evaluated For Impairment	7	0
Consumer and Other [Member] | Collateral Pledged [Member]
Financing Receivable Individually Evaluated For Impairment	7	0
Allowance for credit loss	$ 0	$ 0

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Note 7 - Loans Receivable and Credit Disclosures - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Nonaccrual Loans	$ 13,190	$ 13,794
Nonaccrual Loans, no allowance	12,972	13,570
Construction Real Estate [Member]
Nonaccrual Loans	62	66
Nonaccrual Loans, no allowance	62	66
Family Residential Real Estate 1-4 [Member]
Nonaccrual Loans	666	678
Nonaccrual Loans, no allowance	552	563
Multifamily [Member]
Nonaccrual Loans	2,020	2,034
Nonaccrual Loans, no allowance	2,020	2,034
Commercial Real Estate Portfolio Segment [Member]
Nonaccrual Loans	8,698	8,976
Nonaccrual Loans, no allowance	8,698	8,976
Agriculture Real Estate [Member]
Nonaccrual Loans	444	449
Nonaccrual Loans, no allowance	444	449
Commercial Portfolio Segment [Member]
Nonaccrual Loans	258	268
Nonaccrual Loans, no allowance	165	172
Agriculture [Member]
Nonaccrual Loans	1,024	1,310
Nonaccrual Loans, no allowance	1,024	1,310
Consumer and Other [Member]
Nonaccrual Loans	18	13
Nonaccrual Loans, no allowance	$ 7	$ 0

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Note 7 - Loans Receivable and Credit Disclosures - (Details) - Agriculture [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Financing Receivable, Modified, Weighted Average Term Increase from Modification (Year)	8 years
Financing Receivable, Modified	$ 336
Financing Receivable, Modified, Percentage	0.30%

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Note 7 - Loans Receivable and Credit Disclosures - Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans receivable	$ 1,289,470	$ 1,294,178
Financing receivable, recorded investment, 90 days past due and still accruing	110	109
Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	1,558	2,242
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	1,796	2,084
Financial Asset, Past Due [Member]
Loans receivable	3,354	4,326
Financial Asset, Not Past Due [Member]
Loans receivable	1,286,116	1,289,852
Construction Real Estate [Member]
Loans receivable	70,095	63,050
Financing receivable, recorded investment, 90 days past due and still accruing	0	0
Construction Real Estate [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	0	359
Construction Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	0	66
Construction Real Estate [Member] | Financial Asset, Past Due [Member]
Loans receivable	0	425
Construction Real Estate [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	70,095	62,625
Family Residential Real Estate 1-4 [Member]
Loans receivable	288,988	289,404
Financing receivable, recorded investment, 90 days past due and still accruing	96	3
Family Residential Real Estate 1-4 [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	978	1,020
Family Residential Real Estate 1-4 [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	309	302
Family Residential Real Estate 1-4 [Member] | Financial Asset, Past Due [Member]
Loans receivable	1,287	1,322
Family Residential Real Estate 1-4 [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	287,701	288,082
Multifamily [Member]
Loans receivable	196,010	195,536
Financing receivable, recorded investment, 90 days past due and still accruing	0	0
Multifamily [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	0	0
Multifamily [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	982	983
Multifamily [Member] | Financial Asset, Past Due [Member]
Loans receivable	982	983
Multifamily [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	195,028	194,553
Commercial Real Estate Portfolio Segment [Member]
Loans receivable	353,061	359,266
Financing receivable, recorded investment, 90 days past due and still accruing	0	106
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	118	119
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	0	106
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Past Due [Member]
Loans receivable	118	225
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	352,943	359,041
Agriculture Real Estate [Member]
Loans receivable	160,457	161,517
Financing receivable, recorded investment, 90 days past due and still accruing	0	0
Agriculture Real Estate [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	111	0
Agriculture Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	0	0
Agriculture Real Estate [Member] | Financial Asset, Past Due [Member]
Loans receivable	111	0
Agriculture Real Estate [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	160,346	161,517
Commercial Portfolio Segment [Member]
Loans receivable	87,751	89,729
Financing receivable, recorded investment, 90 days past due and still accruing	0	0
Commercial Portfolio Segment [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	213	559
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	95	98
Commercial Portfolio Segment [Member] | Financial Asset, Past Due [Member]
Loans receivable	308	657
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	87,443	89,072
Agriculture [Member]
Loans receivable	117,254	119,136
Financing receivable, recorded investment, 90 days past due and still accruing	14	0
Agriculture [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	134	169
Agriculture [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	403	529
Agriculture [Member] | Financial Asset, Past Due [Member]
Loans receivable	537	698
Agriculture [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	116,717	118,438
Consumer and Other [Member]
Loans receivable	15,854	16,540
Financing receivable, recorded investment, 90 days past due and still accruing	0	0
Consumer and Other [Member] | Financing Receivables 30 to 89 Days Past Due [Member]
Loans receivable	4	16
Consumer and Other [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans receivable	7	0
Consumer and Other [Member] | Financial Asset, Past Due [Member]
Loans receivable	11	16
Consumer and Other [Member] | Financial Asset, Not Past Due [Member]
Loans receivable	$ 15,843	$ 16,524

XML

Note 7 - Loans Receivable and Credit Disclosures - Amortized Cost Basis of Term Loans by Year of Origination (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Financing Receivable, Year One	$ 56,183,000		$ 257,666,000
Financing Receivable, Year Two	242,927,000		290,241,000
Financing Receivable, Year Three	281,658,000		265,145,000
Financing Receivable, Year Four	253,209,000		213,817,000
Financing Receivable, Year Five	207,422,000		54,588,000
Financing Receivable, Prior	109,855,000		62,535,000
Financing Receivable, Revolving	138,216,000		150,186,000
Financing Receivable, Total	1,289,470,000		1,294,178,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		39,000
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		74,000
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		90,000
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		33,000
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		9,000
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	$ 168,000	245,000
Pass [Member]
Financing Receivable, Year One	48,863,000		221,812,000
Financing Receivable, Year Two	209,438,000		269,458,000
Financing Receivable, Year Three	261,259,000		210,186,000
Financing Receivable, Year Four	199,242,000		189,293,000
Financing Receivable, Year Five	182,408,000		51,380,000
Financing Receivable, Prior	101,718,000		57,062,000
Financing Receivable, Revolving	121,499,000		137,803,000
Financing Receivable, Total	1,124,427,000		1,136,994,000
Watch [Member]
Financing Receivable, Year One	5,121,000		20,927,000
Financing Receivable, Year Two	20,300,000		16,319,000
Financing Receivable, Year Three	16,182,000		36,014,000
Financing Receivable, Year Four	35,564,000		18,034,000
Financing Receivable, Year Five	18,308,000		522,000
Financing Receivable, Prior	4,997,000		4,873,000
Financing Receivable, Revolving	14,790,000		10,430,000
Financing Receivable, Total	115,262,000		107,119,000
Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		2,531,000
Financing Receivable, Year Three	2,529,000		11,853,000
Financing Receivable, Year Four	6,205,000		3,006,000
Financing Receivable, Year Five	3,277,000		1,043,000
Financing Receivable, Prior	1,035,000		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	13,046,000		18,433,000
Substandard [Member]
Financing Receivable, Year One	2,019,000		5,123,000
Financing Receivable, Year Two	3,624,000		1,727,000
Financing Receivable, Year Three	1,679,000		6,311,000
Financing Receivable, Year Four	11,665,000		3,375,000
Financing Receivable, Year Five	3,325,000		33,000
Financing Receivable, Prior	307,000		384,000
Financing Receivable, Revolving	1,538,000		1,484,000
Financing Receivable, Total	24,157,000		18,437,000
Substandard Impaired [Member]
Financing Receivable, Year One	180,000		9,804,000
Financing Receivable, Year Two	9,565,000		206,000
Financing Receivable, Year Three	9,000		781,000
Financing Receivable, Year Four	533,000		109,000
Financing Receivable, Year Five	104,000		1,610,000
Financing Receivable, Prior	1,798,000		216,000
Financing Receivable, Revolving	389,000		469,000
Financing Receivable, Total	12,578,000		13,195,000
Commercial Portfolio Segment [Member]
Financing Receivable, Year One	6,491,000		25,458,000
Financing Receivable, Year Two	21,691,000		13,196,000
Financing Receivable, Year Three	12,302,000		10,502,000
Financing Receivable, Year Four	9,800,000		3,027,000
Financing Receivable, Year Five	2,801,000		2,527,000
Financing Receivable, Prior	4,095,000		1,787,000
Financing Receivable, Revolving	30,571,000		33,232,000
Financing Receivable, Total	87,751,000		89,729,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		33,000
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		4,000
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	4,000	37,000
Commercial Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Year One	5,216,000		23,904,000
Financing Receivable, Year Two	21,106,000		12,645,000
Financing Receivable, Year Three	11,818,000		10,378,000
Financing Receivable, Year Four	9,732,000		2,087,000
Financing Receivable, Year Five	1,923,000		2,434,000
Financing Receivable, Prior	3,821,000		1,578,000
Financing Receivable, Revolving	27,287,000		29,752,000
Financing Receivable, Total	80,903,000		82,778,000
Commercial Portfolio Segment [Member] | Watch [Member]
Financing Receivable, Year One	632,000		860,000
Financing Receivable, Year Two	539,000		295,000
Financing Receivable, Year Three	275,000		119,000
Financing Receivable, Year Four	64,000		423,000
Financing Receivable, Year Five	368,000		93,000
Financing Receivable, Prior	203,000		137,000
Financing Receivable, Revolving	1,746,000		1,996,000
Financing Receivable, Total	3,827,000		3,923,000
Commercial Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	0		0
Commercial Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Year One	599,000		600,000
Financing Receivable, Year Two	0		256,000
Financing Receivable, Year Three	209,000		0
Financing Receivable, Year Four	0		421,000
Financing Receivable, Year Five	417,000		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	1,538,000		1,484,000
Financing Receivable, Total	2,763,000		2,761,000
Commercial Portfolio Segment [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	44,000		94,000
Financing Receivable, Year Two	46,000		0
Financing Receivable, Year Three	0		5,000
Financing Receivable, Year Four	4,000		96,000
Financing Receivable, Year Five	93,000		0
Financing Receivable, Prior	71,000		72,000
Financing Receivable, Revolving	0		0
Financing Receivable, Total	258,000		267,000
Construction Real Estate [Member]
Financing Receivable, Year One	9,788,000		45,484,000
Financing Receivable, Year Two	43,948,000		14,567,000
Financing Receivable, Year Three	13,901,000		746,000
Financing Receivable, Year Four	246,000		11,000
Financing Receivable, Year Five	11,000		0
Financing Receivable, Prior	324,000		325,000
Financing Receivable, Revolving	1,877,000		1,917,000
Financing Receivable, Total	70,095,000		63,050,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	0	(0)	0
Construction Real Estate [Member] | Pass [Member]
Financing Receivable, Year One	9,726,000		45,404,000
Financing Receivable, Year Two	43,869,000		14,501,000
Financing Receivable, Year Three	13,901,000		746,000
Financing Receivable, Year Four	246,000		11,000
Financing Receivable, Year Five	11,000		0
Financing Receivable, Prior	324,000		325,000
Financing Receivable, Revolving	1,877,000		1,917,000
Financing Receivable, Total	69,954,000		62,904,000
Construction Real Estate [Member] | Watch [Member]
Financing Receivable, Year One	79,000		80,000
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	79,000		0
Financing Receivable, Total			80,000
Construction Real Estate [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total			0
Construction Real Estate [Member] | Substandard [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total			0
Construction Real Estate [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	62,000		0
Financing Receivable, Year Two	0		66,000
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	62,000		66,000
Agriculture [Member]
Financing Receivable, Year One	13,912,000		16,682,000
Financing Receivable, Year Two	12,035,000		8,889,000
Financing Receivable, Year Three	7,129,000		6,155,000
Financing Receivable, Year Four	5,294,000		2,934,000
Financing Receivable, Year Five	2,678,000		418,000
Financing Receivable, Prior	1,093,000		802,000
Financing Receivable, Revolving	75,113,000		83,256,000
Financing Receivable, Total	117,254,000		119,136,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		39,000
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		74,000
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		90,000
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	164,000	203,000
Agriculture [Member] | Pass [Member]
Financing Receivable, Year One	8,212,000		14,614,000
Financing Receivable, Year Two	11,314,000		8,395,000
Financing Receivable, Year Three	6,741,000		5,459,000
Financing Receivable, Year Four	4,686,000		2,858,000
Financing Receivable, Year Five	2,247,000		400,000
Financing Receivable, Prior	881,000		608,000
Financing Receivable, Revolving	64,304,000		77,448,000
Financing Receivable, Total	98,385,000		109,782,000
Agriculture [Member] | Watch [Member]
Financing Receivable, Year One	4,280,000		1,107,000
Financing Receivable, Year Two	579,000		340,000
Financing Receivable, Year Three	374,000		288,000
Financing Receivable, Year Four	347,000		18,000
Financing Receivable, Year Five	388,000		18,000
Financing Receivable, Prior	212,000		194,000
Financing Receivable, Revolving	10,420,000		5,419,000
Financing Receivable, Total	16,600,000		7,384,000
Agriculture [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	0		0
Agriculture [Member] | Substandard [Member]
Financing Receivable, Year One	1,420,000		866,000
Financing Receivable, Year Two	46,000		14,000
Financing Receivable, Year Three	14,000		25,000
Financing Receivable, Year Four	25,000		58,000
Financing Receivable, Year Five	43,000		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	1,548,000		963,000
Agriculture [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	0		95,000
Financing Receivable, Year Two	96,000		140,000
Financing Receivable, Year Three	0		383,000
Financing Receivable, Year Four	236,000		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	389,000		389,000
Financing Receivable, Total	721,000		1,007,000
Family Residential Real Estate 1-4 [Member]
Financing Receivable, Year One	9,666,000		57,222,000
Financing Receivable, Year Two	54,398,000		66,506,000
Financing Receivable, Year Three	64,722,000		71,223,000
Financing Receivable, Year Four	69,902,000		49,138,000
Financing Receivable, Year Five	47,453,000		8,839,000
Financing Receivable, Prior	24,520,000		17,720,000
Financing Receivable, Revolving	18,327,000		18,756,000
Financing Receivable, Total	288,988,000		289,404,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	(0)	0
Family Residential Real Estate 1-4 [Member] | Pass [Member]
Financing Receivable, Year One	9,509,000		55,051,000
Financing Receivable, Year Two	52,327,000		66,190,000
Financing Receivable, Year Three	64,412,000		59,250,000
Financing Receivable, Year Four	58,158,000		47,865,000
Financing Receivable, Year Five	46,192,000		8,607,000
Financing Receivable, Prior	23,741,000		17,154,000
Financing Receivable, Revolving	18,245,000		18,649,000
Financing Receivable, Total	272,584,000		272,766,000
Family Residential Real Estate 1-4 [Member] | Watch [Member]
Financing Receivable, Year One	83,000		1,608,000
Financing Receivable, Year Two	1,513,000		298,000
Financing Receivable, Year Three	293,000		10,483,000
Financing Receivable, Year Four	10,265,000		1,226,000
Financing Receivable, Year Five	915,000		0
Financing Receivable, Prior	350,000		358,000
Financing Receivable, Revolving	82,000		27,000
Financing Receivable, Total	13,501,000		14,000,000
Family Residential Real Estate 1-4 [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	299,000		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	299,000		0
Family Residential Real Estate 1-4 [Member] | Substandard [Member]
Financing Receivable, Year One	0		448,000
Financing Receivable, Year Two	444,000		18,000
Financing Receivable, Year Three	17,000		1,350,000
Financing Receivable, Year Four	1,337,000		47,000
Financing Receivable, Year Five	47,000		33,000
Financing Receivable, Prior	93,000		64,000
Financing Receivable, Revolving	0		0
Financing Receivable, Total	1,938,000		1,960,000
Family Residential Real Estate 1-4 [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	74,000		115,000
Financing Receivable, Year Two	114,000		0
Financing Receivable, Year Three	0		140,000
Financing Receivable, Year Four	142,000		0
Financing Receivable, Year Five	0		199,000
Financing Receivable, Prior	336,000		144,000
Financing Receivable, Revolving	0		80,000
Financing Receivable, Total	666,000		678,000
Consumer and Other [Member]
Financing Receivable, Year One	1,173,000		6,938,000
Financing Receivable, Year Two	5,856,000		3,719,000
Financing Receivable, Year Three	3,271,000		2,701,000
Financing Receivable, Year Four	2,476,000		2,084,000
Financing Receivable, Year Five	1,941,000		352,000
Financing Receivable, Prior	1,019,000		731,000
Financing Receivable, Revolving	118,000		15,000
Financing Receivable, Total	15,854,000		16,540,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		5,000
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	(0)	5,000
Consumer and Other [Member] | Pass [Member]
Financing Receivable, Year One	1,158,000		6,801,000
Financing Receivable, Year Two	5,847,000		3,719,000
Financing Receivable, Year Three	3,262,000		2,701,000
Financing Receivable, Year Four	2,476,000		2,071,000
Financing Receivable, Year Five	1,930,000		352,000
Financing Receivable, Prior	1,019,000		731,000
Financing Receivable, Revolving	118,000		15,000
Financing Receivable, Total	15,810,000		16,390,000
Consumer and Other [Member] | Watch [Member]
Financing Receivable, Year One	15,000		127,000
Financing Receivable, Year Two	1,000		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	16,000		127,000
Consumer and Other [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	0		0
Consumer and Other [Member] | Substandard [Member]
Financing Receivable, Year One	0		10,000
Financing Receivable, Year Two	8,000		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	8,000		10,000
Consumer and Other [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	9,000		0
Financing Receivable, Year Four	0		13,000
Financing Receivable, Year Five	11,000		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	20,000		13,000
Multifamily [Member]
Financing Receivable, Year One	1,872,000		24,022,000
Financing Receivable, Year Two	24,861,000		53,355,000
Financing Receivable, Year Three	52,931,000		55,353,000
Financing Receivable, Year Four	54,756,000		42,499,000
Financing Receivable, Year Five	42,080,000		14,593,000
Financing Receivable, Prior	14,759,000		694,000
Financing Receivable, Revolving	4,751,000		5,020,000
Financing Receivable, Total	196,010,000		195,536,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	(0)	0
Multifamily [Member] | Pass [Member]
Financing Receivable, Year One	1,872,000		18,436,000
Financing Receivable, Year Two	18,825,000		51,928,000
Financing Receivable, Year Three	51,511,000		47,161,000
Financing Receivable, Year Four	46,627,000		40,201,000
Financing Receivable, Year Five	39,806,000		13,542,000
Financing Receivable, Prior	13,723,000		694,000
Financing Receivable, Revolving	4,751,000		5,020,000
Financing Receivable, Total	177,115,000		176,982,000
Multifamily [Member] | Watch [Member]
Financing Receivable, Year One	0		4,603,000
Financing Receivable, Year Two	5,053,000		1,427,000
Financing Receivable, Year Three	1,420,000		8,192,000
Financing Receivable, Year Four	8,129,000		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	14,602,000		14,222,000
Multifamily [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	0		0
Multifamily [Member] | Substandard [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		2,298,000
Financing Receivable, Year Five	2,274,000		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	2,274,000		2,298,000
Multifamily [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	0		983,000
Financing Receivable, Year Two	983,000		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		1,051,000
Financing Receivable, Prior	1,036,000		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	2,019,000		2,034,000
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Year One	5,711,000		52,926,000
Financing Receivable, Year Two	52,719,000		97,453,000
Financing Receivable, Year Three	95,485,000		83,041,000
Financing Receivable, Year Four	76,563,000		84,631,000
Financing Receivable, Year Five	82,835,000		21,487,000
Financing Receivable, Prior	33,883,000		13,811,000
Financing Receivable, Revolving	5,865,000		5,917,000
Financing Receivable, Total	353,061,000		359,266,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	(0)	0
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Year One	5,600,000		35,133,000
Financing Receivable, Year Two	35,237,000		81,342,000
Financing Receivable, Year Three	79,514,000		51,598,000
Financing Receivable, Year Four	45,635,000		66,467,000
Financing Receivable, Year Five	65,375,000		20,006,000
Financing Receivable, Prior	31,842,000		13,122,000
Financing Receivable, Revolving	3,323,000		2,929,000
Financing Receivable, Total	266,526,000		270,597,000
Commercial Real Estate Portfolio Segment [Member] | Watch [Member]
Financing Receivable, Year One	111,000		8,379,000
Financing Receivable, Year Two	8,309,000		13,580,000
Financing Receivable, Year Three	13,442,000		14,669,000
Financing Receivable, Year Four	14,533,000		14,607,000
Financing Receivable, Year Five	13,938,000		78,000
Financing Receivable, Prior	651,000		583,000
Financing Receivable, Revolving	2,542,000		2,988,000
Financing Receivable, Total	53,526,000		54,884,000
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		2,531,000
Financing Receivable, Year Three	2,529,000		11,853,000
Financing Receivable, Year Four	6,205,000		3,006,000
Financing Receivable, Year Five	2,978,000		1,043,000
Financing Receivable, Prior	1,035,000		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	12,747,000		18,433,000
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Year One	0		897,000
Financing Receivable, Year Two	847,000		0
Financing Receivable, Year Three	0		4,822,000
Financing Receivable, Year Four	10,190,000		551,000
Financing Receivable, Year Five	544,000		0
Financing Receivable, Prior	0		106,000
Financing Receivable, Revolving	0		0
Financing Receivable, Total	11,581,000		6,376,000
Commercial Real Estate Portfolio Segment [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	0		8,517,000
Financing Receivable, Year Two	8,326,000		0
Financing Receivable, Year Three	0		99,000
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		360,000
Financing Receivable, Prior	355,000		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	8,681,000		8,976,000
Agriculture Real Estate [Member]
Financing Receivable, Year One	7,570,000		28,934,000
Financing Receivable, Year Two	27,419,000		32,556,000
Financing Receivable, Year Three	31,917,000		35,424,000
Financing Receivable, Year Four	34,172,000		29,493,000
Financing Receivable, Year Five	27,623,000		6,372,000
Financing Receivable, Prior	30,162,000		26,665,000
Financing Receivable, Revolving	1,594,000		2,073,000
Financing Receivable, Total	160,457,000		161,517,000
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff	0		0
Financing Receivable, Revolving, Writeoff	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	(0)	$ (0)	0
Agriculture Real Estate [Member] | Pass [Member]
Financing Receivable, Year One	7,570,000		22,469,000
Financing Receivable, Year Two	20,913,000		30,738,000
Financing Receivable, Year Three	30,100,000		32,893,000
Financing Receivable, Year Four	31,682,000		27,733,000
Financing Receivable, Year Five	24,924,000		6,039,000
Financing Receivable, Prior	26,367,000		22,850,000
Financing Receivable, Revolving	1,594,000		2,073,000
Financing Receivable, Total	143,150,000		144,795,000
Agriculture Real Estate [Member] | Watch [Member]
Financing Receivable, Year One	0		4,163,000
Financing Receivable, Year Two	4,227,000		379,000
Financing Receivable, Year Three	378,000		2,263,000
Financing Receivable, Year Four	2,226,000		1,760,000
Financing Receivable, Year Five	2,699,000		333,000
Financing Receivable, Prior	3,581,000		3,601,000
Financing Receivable, Revolving	0		0
Financing Receivable, Total	13,111,000		12,499,000
Agriculture Real Estate [Member] | Special Mention [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		0
Financing Receivable, Year Four	0		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	0		0
Agriculture Real Estate [Member] | Substandard [Member]
Financing Receivable, Year One	0		2,302,000
Financing Receivable, Year Two	2,279,000		1,439,000
Financing Receivable, Year Three	1,439,000		114,000
Financing Receivable, Year Four	113,000		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	214,000		214,000
Financing Receivable, Revolving	0		0
Financing Receivable, Total	4,045,000		4,069,000
Agriculture Real Estate [Member] | Substandard Impaired [Member]
Financing Receivable, Year One	0		0
Financing Receivable, Year Two	0		0
Financing Receivable, Year Three	0		154,000
Financing Receivable, Year Four	151,000		0
Financing Receivable, Year Five	0		0
Financing Receivable, Prior	0		0
Financing Receivable, Revolving	0		0
Financing Receivable, Total	$ 151,000		$ 154,000

XML

Note 8 - Intangible Assets (Details Textual)	Mar. 31, 2024	Dec. 31, 2023
Weighted Average [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	2 years	2 years

XML

Note 8 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Intangible asset, gross amount	$ 6,411	$ 6,946
Intangible asset, accumulated amortization	5,069	5,517
Core Deposits [Member]
Intangible asset, gross amount	6,411	6,411
Intangible asset, accumulated amortization	5,069	4,982
Customer Lists [Member]
Intangible asset, gross amount	0	535
Intangible asset, accumulated amortization	$ 0	$ 535

XML

Note 8 - Intangible Assets - Intangible Assets Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Beginning intangibles, net	$ 1,429	$ 1,931
Amortization	(87)	(130)
Ending intangible asset, net	$ 1,342	$ 1,801

XML

Note 8 - Intangible Assets - Estimated Remaining Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
2024	$ 250
2025	301
2026	268
2027	240
2028	190
2029	93
Total	$ 1,342	$ 1,429	$ 1,801	$ 1,931

XML

Note 9 - Pledged Collateral Related to Securities Sold Under Repurchase Agreements - Pledged Collateral at Estimated Fair Value (Details) - Asset Pledged as Collateral [Member] - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Securities sold under agreements to repurchase	$ 76,190	$ 75,206
US Treasury and Government [Member] | Collateral Related to Securities Sold Under Agreements to Repurchase [Member]
Securities sold under agreements to repurchase	23,808	22,877
US Government Agencies Debt Securities [Member] | Collateral Related to Securities Sold Under Agreements to Repurchase [Member]
Securities sold under agreements to repurchase	44,792	44,960
Mortgage-Backed Security, Issued by US Government-Sponsored Enterprise [Member] | Collateral Related to Securities Sold Under Agreements to Repurchase [Member]
Securities sold under agreements to repurchase	$ 7,590	$ 7,369

XML

Note 11 - Derivative Financial Instruments (Details Textual) - Interest Rate Swap [Member] - Fair Value Hedging [Member] - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Derivative, Notional Amount		$ 25.0
Collateral Already Posted, Aggregate Fair Value	$ 1.5	$ 1.6

XML

Note 10 - Derivative Financial Instruments - Fair Value Hedges (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Other Assets [Member]
Interest rate swaps	$ 8,831	$ 8,930
Derivative financial instruments	1,027	891
Other Liabilities [Member]
Interest rate swaps	25,000	25,000
Interest rate swaps, Fair value	$ (62)	$ (411)

XML

Note 10- Derivative Financial Instruments - Schedule of Balance Sheet Derivatives (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Customer Interest Rate Swaps [Member] | Other Assets [Member]
Interest rate swaps	$ 12,373	$ 11,353
Interest rate swaps, Fair value	176	334
Derivative financial instruments	$ 176	$ 334
Receive Rate	7.32%	7.36%
Pay Rate	5.62%	5.62%
Customer Interest Rate Swaps [Member] | Other Liabilities [Member]
Interest rate swaps	$ 12,373	$ 11,353
Receive Rate	5.62%	5.62%
Pay Rate	7.32%	7.36%
Interest rate swaps, Fair value	$ (176)	$ 334
Derivative financial instruments	176	(334)
Interest Rate Swap [Member] | Other Assets [Member]
Interest rate swaps	8,831	8,930
Interest rate swaps, Fair value	1,027	891
Derivative financial instruments	1,027	891
Interest Rate Swap [Member] | Loans Receivable, Net [Member]
Interest rate swaps, Fair value	57,073	58,588
Derivative financial instruments	57,073	58,588
Adjustment in hedged assets	(965)	(481)
Interest Rate Swap [Member] | Other Liabilities [Member]
Interest rate swaps	25,000	25,000
Interest rate swaps, Fair value	(62)	(411)
Derivative financial instruments	$ 62	$ 411

XML

Note 12 - Regulatory Matters (Details Textual)	Mar. 31, 2024
Banking Regulation, Capital Conservation Buffer, Total Risk-Based Capital, Actual	0.025
Banking Regulation, Capital Conservation Buffer, Common Equity Tier 1 Risk-Based Capital, Actual	0.025
Banking Regulation, Capital Conservation Buffer, Capital Conserved, Minimum	0.025

XML

Note 15 - Regulatory Matters - Actual Capital Amounts and Ratios (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Capital	$ 218,220	$ 218,049
Capital to risk weighted assets	0.141	0.14
Capital required for capital adequacy	$ 162,803	$ 164,005
Capital required for capital adequacy to risk weighted assets	10.50%	10.50%
Tier one risk based capital	$ 200,184	$ 200,187
Tier one risk based capital to risk weighted assets	0.129	0.128
Tier one risk based capital required for capital adequacy	$ 131,793	$ 132,766
Tier one risk based capital required for capital adequacy to risk weighted assets	8.50%	8.50%
Tier one leverage capital	$ 200,184	$ 200,187
Tier one leverage capital to average assets	0.09	0.09
Tier one leverage capital required for capital adequacy	$ 88,970	$ 88,992
Tier one leverage capital required for capital adequacy to risk weighted assets	0.04	0.04
Common equity tier one capital	$ 200,184	$ 200,187
Common equity tier one risk based capital to risk weighted assets	0.129	0.128
Common equity tier one capital required for capital adequacy	$ 108,535	$ 109,337
Common equity tier one risk based capital required for capital adequacy to risk weighted assets	7.00%	7.00%
Boone Bank and Trust [Member]
Capital	$ 16,203	$ 16,232
Capital to risk weighted assets	0.128	0.136
Capital required for capital adequacy	$ 13,285	$ 12,510
Capital required for capital adequacy to risk weighted assets	10.50%	10.50%
Capital required to be well capitalized	$ 12,652	$ 11,914
Capital required to be well capitalized to risk weighted assets	0.10	0.10
Tier one risk based capital	$ 15,233	$ 15,309
Tier one risk based capital to risk weighted assets	0.12	0.128
Tier one risk based capital required for capital adequacy	$ 10,754	$ 10,127
Tier one risk based capital required for capital adequacy to risk weighted assets	8.50%	8.50%
Tier one risk based capital required to be well capitalized	$ 10,122	$ 9,532
Tier one risk based capital required to be well capitalized to risk weighted assets	0.08	0.08
Tier one leverage capital	$ 15,233	$ 15,309
Tier one leverage capital to average assets	0.093	0.096
Tier one leverage capital required for capital adequacy	$ 6,537	$ 6,393
Tier one leverage capital required for capital adequacy to risk weighted assets	0.04	0.04
Tier one leverage capital required to be well capitalized	$ 8,171	$ 7,991
Tier one leverage capital required to be well capitalized to average assets	0.05	0.05
Common equity tier one capital	$ 15,233	$ 15,309
Common equity tier one risk based capital to risk weighted assets	0.12	0.128
Common equity tier one capital required for capital adequacy	$ 8,857	$ 8,340
Common equity tier one risk based capital required for capital adequacy to risk weighted assets	7.00%	7.00%
Common equity tier one capital required to be well capitalized	$ 8,224	$ 7,744
Common equity tier one capital required to be well capitalized to risk weighted assets	6.50%	6.50%
First National Bank [Member] | Also Conducts Business Out of 3 Full Service Offices in Des Moines Metro Area [Member]
Capital	$ 111,844	$ 112,057
Capital to risk weighted assets	0.141	0.139
Capital required for capital adequacy	$ 83,450	$ 84,863
Capital required for capital adequacy to risk weighted assets	10.50%	10.50%
Capital required to be well capitalized	$ 79,477	$ 80,822
Capital required to be well capitalized to risk weighted assets	0.10	0.10
Tier one risk based capital	$ 102,355	$ 102,634
Tier one risk based capital to risk weighted assets	0.129	0.127
Tier one risk based capital required for capital adequacy	$ 67,555	$ 68,699
Tier one risk based capital required for capital adequacy to risk weighted assets	8.50%	8.50%
Tier one risk based capital required to be well capitalized	$ 63,581	$ 64,658
Tier one risk based capital required to be well capitalized to risk weighted assets	0.08	0.08
Tier one leverage capital	$ 102,355	$ 102,634
Tier one leverage capital to average assets	0.089	0.088
Tier one leverage capital required for capital adequacy	$ 45,931	$ 46,878
Tier one leverage capital required for capital adequacy to risk weighted assets	0.04	0.04
Tier one leverage capital required to be well capitalized	$ 57,414	$ 58,597
Tier one leverage capital required to be well capitalized to average assets	0.05	0.05
Common equity tier one capital	$ 102,355	$ 102,634
Common equity tier one risk based capital to risk weighted assets	0.129	0.127
Common equity tier one capital required for capital adequacy	$ 55,634	$ 56,576
Common equity tier one risk based capital required for capital adequacy to risk weighted assets	7.00%
Common equity tier one capital required to be well capitalized	$ 51,660	$ 52,534
Common equity tier one capital required to be well capitalized to risk weighted assets	6.50%	6.50%
Iowa State Savings Bank [Member]
Capital	$ 27,014	$ 26,691
Capital to risk weighted assets	0.16	0.157
Capital required for capital adequacy	$ 17,674	$ 17,854
Capital required for capital adequacy to risk weighted assets	10.50%	10.50%
Capital required to be well capitalized	$ 16,833	$ 17,004
Capital required to be well capitalized to risk weighted assets	0.10	0.10
Tier one risk based capital	$ 24,930	$ 24,619
Tier one risk based capital to risk weighted assets	0.148	0.145
Tier one risk based capital required for capital adequacy	$ 14,308	$ 14,453
Tier one risk based capital required for capital adequacy to risk weighted assets	8.50%	8.50%
Tier one risk based capital required to be well capitalized	$ 13,466	$ 13,603
Tier one risk based capital required to be well capitalized to risk weighted assets	0.08	0.08
Tier one leverage capital	$ 24,930	$ 24,619
Tier one leverage capital to average assets	0.095	0.096
Tier one leverage capital required for capital adequacy	$ 10,511	$ 10,234
Tier one leverage capital required for capital adequacy to risk weighted assets	0.04	0.04
Tier one leverage capital required to be well capitalized	$ 13,139	$ 12,792
Tier one leverage capital required to be well capitalized to average assets	0.05	0.05
Common equity tier one capital	$ 24,930	$ 24,619
Common equity tier one risk based capital to risk weighted assets	0.148	0.145
Common equity tier one capital required for capital adequacy	$ 11,783	$ 11,903
Common equity tier one risk based capital required for capital adequacy to risk weighted assets	7.00%
Common equity tier one capital required to be well capitalized	$ 10,941	$ 11,052
Common equity tier one capital required to be well capitalized to risk weighted assets	6.50%	6.50%
Reliance State Bank [Member] | Conducts Business Out of Offices at Story City, Garner, and Kleme, Iowa [Member]
Capital	$ 28,842	$ 28,755
Capital to risk weighted assets	0.123	0.119
Capital required for capital adequacy	$ 24,697	$ 25,293
Capital required for capital adequacy to risk weighted assets	10.50%	10.50%
Capital required to be well capitalized	$ 23,521	$ 24,089
Capital required to be well capitalized to risk weighted assets	0.10	0.10
Tier one risk based capital	$ 26,076	$ 25,937
Tier one risk based capital to risk weighted assets	0.111	0.108
Tier one risk based capital required for capital adequacy	$ 19,993	$ 20,476
Tier one risk based capital required for capital adequacy to risk weighted assets	8.50%	8.50%
Tier one risk based capital required to be well capitalized	$ 18,817	$ 19,271
Tier one risk based capital required to be well capitalized to risk weighted assets	0.08	0.08
Tier one leverage capital	$ 26,076	$ 25,937
Tier one leverage capital to average assets	0.084	0.083
Tier one leverage capital required for capital adequacy	$ 12,344	$ 12,464
Tier one leverage capital required for capital adequacy to risk weighted assets	0.04	0.04
Tier one leverage capital required to be well capitalized	$ 15,430	$ 15,580
Tier one leverage capital required to be well capitalized to average assets	0.05	0.05
Common equity tier one capital	$ 26,076	$ 25,937
Common equity tier one risk based capital to risk weighted assets	0.111	0.108
Common equity tier one capital required for capital adequacy	$ 16,465	$ 16,862
Common equity tier one risk based capital required for capital adequacy to risk weighted assets	7.00%
Common equity tier one capital required to be well capitalized	$ 15,289	$ 15,658
Common equity tier one capital required to be well capitalized to risk weighted assets	6.50%	6.50%
State Bank and Trust [Member]
Capital	$ 22,271	$ 22,283
Capital to risk weighted assets	0.16	0.16
Capital required for capital adequacy	$ 14,603	$ 14,597
Capital required for capital adequacy to risk weighted assets	10.50%	10.50%
Capital required to be well capitalized	$ 13,907	$ 13,902
Capital required to be well capitalized to risk weighted assets	0.10	0.10
Tier one risk based capital	$ 20,627	$ 20,676
Tier one risk based capital to risk weighted assets	0.148	0.149
Tier one risk based capital required for capital adequacy	$ 11,821	$ 11,817
Tier one risk based capital required for capital adequacy to risk weighted assets	8.50%	8.50%
Tier one risk based capital required to be well capitalized	$ 11,126	$ 11,122
Tier one risk based capital required to be well capitalized to risk weighted assets	0.08	0.08
Tier one leverage capital	$ 20,627	$ 20,676
Tier one leverage capital to average assets	0.097	0.096
Tier one leverage capital required for capital adequacy	$ 8,463	$ 8,573
Tier one leverage capital required for capital adequacy to risk weighted assets	0.04	0.04
Tier one leverage capital required to be well capitalized	$ 10,579	$ 10,717
Tier one leverage capital required to be well capitalized to average assets	0.05	0.05
Common equity tier one capital	$ 20,627	$ 20,676
Common equity tier one risk based capital to risk weighted assets	0.148	0.149
Common equity tier one capital required for capital adequacy	$ 9,735	$ 9,731
Common equity tier one risk based capital required for capital adequacy to risk weighted assets	7.00%
Common equity tier one capital required to be well capitalized	$ 9,040	$ 9,036
Common equity tier one capital required to be well capitalized to risk weighted assets	6.50%	6.50%
United Bank and Trust [Member]
Capital	$ 13,107	$ 12,989
Capital to risk weighted assets	0.155	0.161
Capital required for capital adequacy	$ 8,877	$ 8,486
Capital required for capital adequacy to risk weighted assets	10.50%	10.50%
Capital required to be well capitalized	$ 8,454	$ 8,082
Capital required to be well capitalized to risk weighted assets	0.10	0.10
Tier one risk based capital	$ 12,050	$ 11,979
Tier one risk based capital to risk weighted assets	0.143	0.148
Tier one risk based capital required for capital adequacy	$ 7,186	$ 6,870
Tier one risk based capital required for capital adequacy to risk weighted assets	8.50%	8.50%
Tier one risk based capital required to be well capitalized	$ 6,763	$ 6,466
Tier one risk based capital required to be well capitalized to risk weighted assets	0.08	0.08
Tier one leverage capital	$ 12,050	$ 11,979
Tier one leverage capital to average assets	0.097	0.095
Tier one leverage capital required for capital adequacy	$ 4,951	$ 5,039
Tier one leverage capital required for capital adequacy to risk weighted assets	0.04	0.04
Tier one leverage capital required to be well capitalized	$ 6,188	$ 6,299
Tier one leverage capital required to be well capitalized to average assets	0.05	0.05
Common equity tier one capital	$ 12,050	$ 11,979
Common equity tier one risk based capital to risk weighted assets	0.143	0.148
Common equity tier one capital required for capital adequacy	$ 5,918	$ 5,657
Common equity tier one risk based capital required for capital adequacy to risk weighted assets	7.00%
Common equity tier one capital required to be well capitalized	$ 5,495	$ 5,253
Common equity tier one capital required to be well capitalized to risk weighted assets	6.50%	6.50%