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Loans (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Loans
Loans are comprised of the following:
 
December 31,
(In thousands)20222021
Commercial and business loans$59,925 $42,194 
Government program loans85 3,310 
Total commercial and industrial60,010 45,504 
Real estate – mortgage:  
Commercial real estate398,624 331,050 
Residential mortgages273,442 226,926 
Home improvement and home equity loans49 80 
Total real estate mortgage672,115 558,056 
Real estate construction and development152,310 154,270 
Agricultural52,745 60,239 
Installment and student loans44,592 51,245 
Total loans$981,772 $869,314 
Loans to Affiliates
Loans to directors, officers, principal shareholders and their affiliates are summarized below:
(In thousands)20222021
Aggregate amount outstanding, beginning of year$13,100 $1,900 
Retirement of director during 2022(8,899)— 
New loans or advances during year980 7,899 
Repayments during year(1,571)(198)
Aggregate amount outstanding, end of year$3,610 $9,601 
Undisbursed commitments, end of year$1,050 $13,100 
Delinquent Loans
The following is a summary of delinquent loans at December 31, 2022 (in thousands):
December 31, 2022Loans
30-60 Days Past Due		Loans
61-89 Days Past Due		Loans
90 or More
Days Past Due		Total Past Due LoansCurrent LoansTotal LoansAccruing
Loans 90 or
More Days Past Due
Commercial and business loans$— $— $— $— 59,925 59,925 $— 
Government program loans— — — — 85 85 — 
Total commercial and industrial— — — — 60,010 60,010 — 
Commercial real estate loans— — — — 398,624 398,624 — 
Residential mortgages— — — — 273,442 273,442 — 
Home improvement and home equity loans8 — — 8 41 49 — 
Total real estate mortgage8 — — 8 672,107 672,115 — 
Real estate construction and development loans— — 12,545 12,545 139,765 152,310 — 
Agricultural loans— — 108 108 52,637 52,745 — 
Installment and student loans546 642 252 1,440 43,152 44,592 252 
Total loans$554 $642 $12,905 $14,101 $967,671 $981,772 $252 

The following is a summary of delinquent loans at December 31, 2021 (in thousands):
December 31, 2021Loans 30-60 Days Past DueLoans 61-89 Days Past DueLoans 90 or More Days Past DueTotal Past Due LoansCurrent LoansTotal LoansAccruing Loans 90 or More Days Past Due
Commercial and business loans$— $— $— $— $42,194 $42,194 $— 
Government program loans— — — — 3,310 3,310 — 
Total commercial and industrial— — — — 45,504 45,504 — 
Commercial real estate loans— — — — 331,050 331,050 — 
Residential mortgages6,745 — — 6,745 220,181 226,926 — 
Home improvement and home equity loans12 — — 12 68 80 — 
Total real estate mortgage6,757 — — 6,757 551,299 558,056 — 
Real estate construction and development loans— — 9,021 9,021 145,249 154,270 — 
Agricultural loans— — 209 209 60,030 60,239 — 
Installment and student loans1,628 328 453 2,409 48,836 51,245 453 
Total loans$8,385 $328 $9,683 $18,396 $850,918 $869,314 $453 
The following tables summarize the student loan aging for loans in repayment and forbearance as of December 31, 2022 and December 31, 2021:
 December 31, 2022December 31, 2021
 (Dollars in thousands)Number of BorrowersPrincipal AmountNumber of BorrowersPrincipal Amount
Current or less than 31 days251 $26,993 272 $29,596 
31 - 60 days8 546 10 1,628 
61 - 90 days5 642 3 328 
Greater than 90 days4 252 5 453 
Total268 $28,433 290 $32,005 
Nonaccrual Loan Balances
The following is a summary of nonaccrual loan balances at December 31, 2022 and 2021:
  (In thousands)December 31, 2022December 31, 2021
Real estate construction and development loans14,436 11,226 
Agricultural loans108 212 
Total loans$14,544 $11,438 
Impaired Loans
The following is a summary of impaired loans at December 31, 2022 (in thousands):
December 31, 2022Unpaid Contractual Principal BalanceRecorded Investment With No Allowance (1)Recorded Investment With Allowance (1)Total Recorded InvestmentRelated AllowanceAverage Recorded Investment (2)Interest Recognized (2)
Commercial and business loans$— $— $— $— $— $— $— 
Government program loans— — — — — — — 
Total commercial and industrial— — — — — — — 
Commercial real estate loans— — — — — — — 
Residential mortgages141 — 141 141 4 143 7 
Home improvement and home equity loans— — — — — — — 
Total real estate mortgage141 — 141 141 4 143 7 
Real estate construction and development loans14,436 14,436 — 14,436 — 11,778 247 
Agricultural loans1,048 943 108 1,051 48 742 34 
Installment and student loans— — — — — — — 
Total impaired loans$15,625 $15,379 $249 $15,628 $52 $12,663 $288 
(1) The recorded investment in loans includes accrued interest receivable of $3.
(2) Information is based on the year ended December 31, 2022.

The following is a summary of impaired loans at December 31, 2021 (in thousands).
December 31, 2021Unpaid Contractual Principal BalanceRecorded Investment With No Allowance (1)Recorded Investment With Allowance (1)Total Recorded InvestmentRelated AllowanceAverage Recorded Investment (2)Interest Recognized (2)
Commercial and business loans$— $— $— $— $— $156 $— 
Government program loans— — — — — 110 — 
Total commercial and industrial— — — — — 266 — 
Commercial real estate loans— — — — — 538 — 
Residential mortgages146 — 146 146 3 377 6 
Home improvement and home equity loans— — — — — — — 
Total real estate mortgage146 — 146 146 3 915 6 
Real estate construction and development loans11,226 11,226 — 11,226 — 11,133 272 
Agricultural loans660 453 209 662 127 499 41 
Installment and student loans— — — — — — — 
Total impaired loans$12,032 $11,679 $355 $12,034 $130 $12,813 $319 
(1) The recorded investment in loans includes accrued interest receivable of $2.
(2) Information is based on the twelve month period ended December 31, 2021.
Troubled Debt Restructuring Activity
The following tables summarizes all TDR activity by loan category for the years ended December 31, 2022 and 2021 (in thousands).
2022Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$— $— $146 $— $2,206 $242 $— $2,594 
Defaults— — — — — — — — 
Additions— — — — — — — — 
Principal reductions— — (5)— (315)(134)— (454)
Charge-offs— — — — — — — — 
Ending balance$— $— $141 $— $1,891 $108 $— $2,140 
Allowance for loan loss$— $— $4 $— $— $48 $— $52 

2021Commercial and IndustrialCommercial Real EstateResidential MortgagesHome Improvement and Home EquityReal Estate Construction DevelopmentAgriculturalInstallment
and Student Loans		Total
Beginning balance$— $— $365 $— $2,452 $609 $— $3,426 
Defaults— — — — — — — — 
Principal reductions— — (219)— (246)(367)— (832)
Charge-offs— — — — — — — 
Ending balance$— $— $146 $— $2,206 $242 $— $2,594 
Allowance for loan loss$— $— $3 $— $— $127 $— $130 
Credit Risk Rating for Commercial, Construction and Non-consumer Related Loans
The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for December 31, 2022 and 2021. The Company did not carry any loans graded as loss at December 31, 2022 or December 31, 2021 (in thousands):
December 31, 2022Commercial and IndustrialCommercial Real EstateReal Estate Construction and DevelopmentAgriculturalTotal
Grades 1 and 2$226 $— $— $— $226 
Grade 3— — — — — 
Grades 4 and 5 – pass59,584 372,605 137,874 50,680 620,743 
Grade 6 – special mention200 26,019 — 1,017 27,236 
Grade 7 – substandard— — 14,436 1,048 15,484 
Grade 8 – doubtful— — — — — 
Total$60,010 $398,624 $152,310 $52,745 $663,689 
December 31, 2021Commercial and IndustrialCommercial Real EstateReal Estate Construction and DevelopmentAgriculturalTotal
Grades 1 and 2$3,447 $— $— $— $3,447 
Grade 3— 92 — — 92 
Grades 4 and 5 – pass42,054 301,866 143,044 46,739 533,703 
Grade 6 – special mention— 29,092 — 11,197 40,289 
Grade 7 – substandard3 — 11,226 2,303 13,532 
Grade 8 – doubtful— — — — — 
Total$45,504 $331,050 $154,270 $60,239 $591,063 
Credit Risk Ratings for Consumer Related Loans and Other Homogenous Loans
The following table summarizes the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2022 and 2021 (in thousands):

 December 31, 2022December 31, 2021
 Residential MortgagesHome
Improvement and Home Equity		Installment and Student LoansTotalResidential MortgagesHome
Improvement and Home Equity		Installment and Student LoansTotal
Not graded$257,320 $41 $44,340 $301,701 $211,622 $68 $50,421 $262,111 
Pass16,122 8 — 16,130 15,304 12 371 15,687 
Special Mention— — — — — — — — 
Substandard— — 252 252 — — 453 453 
Doubtful— — — — — — — — 
Total$273,442 $49 $44,592 $318,083 $226,926 $80 $51,245 $278,251 
Allowance for Credit Loses by Loan Category
The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2022 and 2021 (in thousands).
December 31, 2022Commercial and IndustrialReal Estate MortgageReal Estate Construction DevelopmentAgriculturalInstallment & Student LoansUnallocatedTotal
Beginning balance$597 $1,174 $2,840 $1,233 $2,720 $769 $9,333 
(Recovery of provision) provision for credit losses87 147 569 (744)1,480 263 1,802 
Charge-offs1 — — — (1,364)— (1,363)
Recoveries270 42 — 36 62 — 410 
Net recoveries (charge-offs)271 42 — 36 (1,302)— (953)
Ending balance$955 $1,363 $3,409 $525 $2,898 $1,032 $10,182 
Period-end amount allocated to:     
Loans individually evaluated for impairment$— $4 $— $48 $— $— $52 
Loans collectively evaluated for impairment955 1,359 3,409 477 2,898 1,032 10,130 
Ending balance$955 $1,363 $3,409 $525 $2,898 $1,032 $10,182 
 
December 31, 2021Commercial and IndustrialReal Estate MortgageReal Estate Construction and DevelopmentAgriculturalInstallmentUnallocatedTotal
Beginning balance$625 $575 $3,722 $711 $2,614 $275 $8,522 
Provision (recovery of provision) for credit losses(119)581 (882)522 1,511 494 2,107 
Charge-offs— — — — (1,543)— (1,543)
Recoveries91 18 — — 138 — 247 
Net recoveries (charge-offs)91 18 — 0 (1,405)— (1,296)
Ending balance$597 $1,174 $2,840 $1,233 $2,720 $769 $9,333 
Period-end amount allocated to:     
Loans individually evaluated for impairment$— $3 $— $127 $— $— $130 
Loans collectively evaluated for impairment597 1,171 2,840 1,106 2,720 769 9,203 
Ending balance$597 $1,174 $2,840 $1,233 $2,720 $769 $9,333 
Summarized Loan Balances
The following summarizes information with respect to the loan balances at December 31, 2022 and 2021.
 December 31, 2022
(In thousands)Loans
Individually
Evaluated for Impairment		Loans
Collectively
Evaluated for Impairment		Total Loans
Commercial and business loans$— $59,925 $59,925 
Government program loans— 85 85 
Total commercial and industrial— 60,010 60,010 
Commercial real estate loans— 398,624 398,624 
Residential mortgage loans141 273,301 273,442 
Home improvement and home equity loans— 49 49 
Total real estate mortgage141 671,974 672,115 
Real estate construction and development loans14,436 137,874 152,310 
Agricultural loans1,051 51,694 52,745 
Installment and student loans— 44,592 44,592 
Total loans$15,628 $966,144 $981,772 
 
 December 31, 2021
(In thousands)Loans
Individually
Evaluated for Impairment		Loans
Collectively
Evaluated for Impairment		Total Loans
Commercial and business loans$— $42,194 $42,194 
Government program loans— 3,310 3,310 
Total commercial and industrial— 45,504 45,504 
Commercial real estate loans— 331,050 331,050 
Residential mortgage loans146 226,780 226,926 
Home improvement and home equity loans— 80 80 
Total real estate mortgage146 557,910 558,056 
Real estate construction and development loans11,226 143,044 154,270 
Agricultural loans662 59,577 60,239 
Installment and student loans— 51,245 51,245 
Total loans$12,034 $857,280 $869,314