| Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES
Outstanding loans are summarized below, in thousands:
| | | March 31, | | | December 31, | |
| | | 2023 | | | 2022 | |
| | | | | | | | | |
| Commercial | | $ | 76,738 | | | $ | 76,680 | |
| Agricultural | | | 118,089 | | | | 122,873 | |
| Real estate – residential | | | 14,734 | | | | 15,324 | |
| Real estate – commercial | | | 521,884 | | | | 516,107 | |
| Real estate – construction and land development | | | 42,726 | | | | 43,420 | |
| Equity lines of credit | | | 35,805 | | | | 35,891 | |
| Auto | | | 100,670 | | | | 96,750 | |
| Other | | | 4,958 | | | | 4,904 | |
| Total loans | | | 915,604 | | | | 911,949 | |
| Deferred loan costs, net | | | 2,748 | | | | 2,736 | |
| Loans, amortized cost basis | | | 918,352 | | | | 914,685 | |
| Allowance for credit losses | | | (12,330 | ) | | | (10,717 | ) |
| Total net loans | | $ | 906,022 | | | $ | 903,968 | |
To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators including loan grade and borrower repayment performance have been statistically correlated with historical credit losses and various econometrics, including California unemployment rates, California Housing Prices, California gross domestic product, California Retail Trade Earnings and Wall Street Journal Prime Rate. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. At both January 1, 2023, the adoption and implementation date of ASC Topic 326, and March 31, 2023, the Company utilized a reasonable and supportable forecast period of approximately four quarters and obtained the forecast data from publicly available sources. The Company also considered the impact of portfolio concentrations, changes in underwriting practices, imprecision in its economic forecasts, and other risk factors that might influence its loss estimation process. Management believes that the allowance for credit losses at March 31, 2023 appropriately reflected expected credit losses inherent in the loan portfolio at that date.
In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. The Company's policy is that loans designated as nonaccrual no longer share risk characteristics similar to other loans evaluated collectively and as such, all nonaccrual loans are individually evaluated for reserves. As of March 31, 2023 the Bank's nonaccrual loans comprised the entire population of loans individually evaluated. The Company's policy is that nonaccrual loans also represent the subset of loans where borrowers are experiencing financial difficulty where an evaluation of the source of repayment is required to determine if the nonaccrual loans should be categorized as collateral dependent.
The implementation of CECL also impacted the Company's ACL on unfunded loan commitments, as the ACL now represents expected credit losses over the contractual life of commitments not identified as unconditionally cancellable by the Company. The Reserve for Unfunded Commitments is estimated using the same reserve or coverage rates calculated on collectively evaluated loans following the application of a funding rate to the amount of the unfunded commitment. The funding rate represents management's estimate of the amount of the current unfunded commitment that will be funded over the remaining contractual life of of the commitment and is based on historical data. Under CECL the ACL on unfunded loan commitments remains in Other Liabilities while any related provision expense is included in the provision for credit loss expense.
Changes in the allowance for credit losses, in thousands, were as follows:
| | | March 31, | | | December 31, | |
| | | 2023 | | | 2022 | |
| | | | | | | | | |
| Balance, beginning of period | | $ | 10,717 | | | $ | 10,352 | |
| Cumulative change from adoption of ASU 2016-13 | | | 529 | | | | - | |
| Provision charged to operations - loans | | | 1,250 | | | | 1,300 | |
| Losses charged to allowance | | | (308 | ) | | | (1,461 | ) |
| Recoveries | | | 142 | | | | 526 | |
| Balance, end of period | | $ | 12,330 | | | $ | 10,717 | |
Salaries and employee benefits totaling $562,000 and $1,062,000 have been deferred as loan origination costs during the three months ended March 31, 2023 and 2022, respectively.
The Company assigns a risk rating to all loans and periodically, but not less than annually, performs detailed reviews of all criticized and classified loans over $100,000 to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by independent specialists engaged by the Company and the Company’s regulators. During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans. These credit quality indicators are used to assign a risk rating to each individual loan.
The risk ratings can be grouped into three major categories, defined as follows:
Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
Substandard – A substandard loan is not adequately protected by the current sound worth and paying capacity of the borrower or the value of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well defined weaknesses include a project's lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project's failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.
Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass-rated loans.
For other loans, which are primarily consumer loans, and automobile loans the Company evaluates credit quality based on the aging status of the loan and by payment activity.
The following table shows the loan portfolio allocated by management's internal risk ratings or payment activity at the dates indicated, in thousands:
| | | Term Loans | | | | | | | | | | | | | |
| | | Amortized Cost Basis by Origination Year and Risk Grades - As of March 31, 2023 | | | | | | | | | | | | | |
| (in thousands) | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | Prior | | | Revolving Loans Book Amortized Cost Basis | | | Revolving Loans Converted to Term Amortized Cost Basis | | | Total - Amortized Cost Basis | |
| Commercial | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $ | 2,330 | | | $ | 24,191 | | | $ | 12,080 | | | $ | 5,316 | | | $ | 5,344 | | | $ | 6,418 | | | $ | 14,352 | | | $ | - | | | $ | 70,031 | |
| Special Mention | | | - | | | | 349 | | | | 427 | | | | 322 | | | | - | | | | 24 | | | | 1,565 | | | | - | | | | 2,687 | |
| Substandard | | | - | | | | 2,204 | | | | 239 | | | | 49 | | | | 4 | | | | - | | | | 2,000 | | | | - | | | | 4,496 | |
| Total Commercial loans | | $ | 2,330 | | | $ | 26,744 | | | $ | 12,746 | | | $ | 5,687 | | | $ | 5,348 | | | $ | 6,442 | | | $ | 17,917 | | | $ | - | | | $ | 77,214 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Agricultural | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $ | 1,236 | | | $ | 20,577 | | | $ | 14,542 | | | $ | 15,684 | | | $ | 12,609 | | | $ | 22,899 | | | $ | 13,263 | | | $ | - | | | $ | 100,810 | |
| Special Mention | | | 807 | | | | 3,497 | | | | 97 | | | | 1,038 | | | | 214 | | | | 796 | | | | 704 | | | | - | | | | 7,153 | |
| Substandard | | | - | | | | 4,988 | | | | 4,496 | | | | - | | | | 768 | | | | 251 | | | | - | | | | - | | | | 10,503 | |
| Total Agricultural | | $ | 2,043 | | | $ | 29,062 | | | $ | 19,135 | | | $ | 16,722 | | | $ | 13,591 | | | $ | 23,946 | | | $ | 13,967 | | | $ | - | | | $ | 118,466 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real Estate - Residential | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $ | 534 | | | $ | 1,086 | | | $ | 2,299 | | | $ | 2,510 | | | $ | 578 | | | $ | 6,801 | | | $ | 515 | | | $ | - | | | $ | 14,323 | |
| Special Mention | | | - | | | | - | | | | - | | | | - | | | | 68 | | | | - | | | | - | | | | - | | | | 68 | |
| Substandard | | | - | | | | - | | | | - | | | | - | | | | - | | | | 384 | | | | - | | | | - | | | | 384 | |
| Total Real Estate - Residential | | $ | 534 | | | $ | 1,086 | | | $ | 2,299 | | | $ | 2,510 | | | $ | 646 | | | $ | 7,185 | | | $ | 515 | | | $ | - | | | $ | 14,775 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real Estate -Commercial | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $ | 6,468 | | | $ | 112,033 | | | $ | 88,280 | | | $ | 107,565 | | | $ | 42,282 | | | $ | 152,951 | | | $ | 5,957 | | | $ | - | | | $ | 515,536 | |
| Special Mention | | | - | | | | - | | | | - | | | | - | | | | 374 | | | | 2,729 | | | | - | | | | - | | | | 3,103 | |
| Substandard | | | - | | | | 14 | | | | - | | | | - | | | | - | | | | 3,017 | | | | - | | | | - | | | | 3,031 | |
| Total Real Estate -Commercial | | $ | 6,468 | | | $ | 112,047 | | | $ | 88,280 | | | $ | 107,565 | | | $ | 42,656 | | | $ | 158,697 | | | $ | 5,957 | | | $ | - | | | $ | 521,670 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real Estate -Construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $ | 1,653 | | | $ | 19,522 | | | $ | 17,160 | | | $ | 2,672 | | | $ | 632 | | | $ | 703 | | | $ | - | | | $ | - | | | $ | 42,342 | |
| Special Mention | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Substandard | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total Real Estate -Construction | | $ | 1,653 | | | $ | 19,522 | | | $ | 17,160 | | | $ | 2,672 | | | $ | 632 | | | $ | 703 | | | $ | - | | | $ | - | | | $ | 42,342 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Equity LOC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | | | $ | 34,909 | | | $ | 1,056 | | | $ | 35,965 | |
| Substandard | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | 254 | | | | 394 | | | | 648 | |
| Total Equity LOC | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | 35,163 | | | $ | 1,450 | | | $ | 36,613 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $ | 12,221 | | | $ | 177,409 | | | $ | 134,361 | | | $ | 133,747 | | | $ | 61,445 | | | $ | 189,772 | | | $ | 68,996 | | | $ | 1,056 | | | $ | 779,007 | |
| Special Mention | | | 807 | | | | 3,846 | | | | 524 | | | | 1,360 | | | | 656 | | | | 3,549 | | | | 2,269 | | | | - | | | | 13,011 | |
| Substandard | | | - | | | | 7,206 | | | | 4,735 | | | | 49 | | | | 772 | | | | 3,652 | | | | 2,254 | | | | 394 | | | | 19,062 | |
| Total | | $ | 13,028 | | | $ | 188,461 | | | $ | 139,620 | | | $ | 135,156 | | | $ | 62,873 | | | $ | 196,973 | | | $ | 73,519 | | | $ | 1,450 | | | $ | 811,080 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Auto | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Performing | | $ | 10,564 | | | $ | 40,193 | | | $ | 21,409 | | | $ | 11,996 | | | $ | 9,928 | | | $ | 7,319 | | | $ | - | | | $ | - | | | $ | 101,409 | |
| Non-performing | | | - | | | | 28 | | | | 348 | | | | 218 | | | | 208 | | | | 61 | | | | | | | | - | | | | 863 | |
| Total Auto | | $ | 10,564 | | | $ | 40,221 | | | $ | 21,757 | | | $ | 12,214 | | | $ | 10,136 | | | $ | 7,380 | | | $ | - | | | $ | - | | | $ | 102,272 | |
| Current period gross charge-offs | | $ | - | | | $ | 15 | | | $ | 116 | | | $ | 17 | | | $ | 82 | | | $ | 63 | | | $ | - | | | $ | - | | | $ | 293 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Performing | | $ | 655 | | | $ | 2,232 | | | $ | 1,174 | | | $ | 490 | | | $ | 218 | | | $ | 37 | | | $ | 173 | | | $ | - | | | $ | 4,979 | |
| Non-performing | | | - | | | | - | | | | 21 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 21 | |
| Total Other | | $ | 655 | | | $ | 2,232 | | | $ | 1,195 | | | $ | 490 | | | $ | 218 | | | $ | 37 | | | $ | 173 | | | $ | - | | | $ | 5,000 | |
| Current period gross charge-offs | | $ | - | | | $ | - | | | $ | 8 | | | $ | 4 | | | $ | 1 | | | $ | - | | | $ | 2 | | | $ | - | | | $ | 15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Performing | | $ | 11,219 | | | $ | 42,425 | | | $ | 22,583 | | | $ | 12,486 | | | $ | 10,146 | | | $ | 7,356 | | | $ | 173 | | | $ | - | | | $ | 106,388 | |
| Non-performing | | | - | | | | 28 | | | | 369 | | | | 218 | | | | 208 | | | | 61 | | | | - | | | | - | | | | 884 | |
| Total | | $ | 11,219 | | | $ | 42,453 | | | $ | 22,952 | | | $ | 12,704 | | | $ | 10,354 | | | $ | 7,417 | | | $ | 173 | | | $ | - | | | $ | 107,272 | |
| Current period gross charge-offs | | $ | - | | | $ | 15 | | | $ | 124 | | | $ | 21 | | | $ | 83 | | | $ | 63 | | | $ | 2 | | | $ | - | | | $ | 308 | |
| December 31, 2022 | | Commercial Credit Exposure | |
| | | Credit Risk Profile by Internally Assigned Grade | |
| Grade: | | Commercial | | | Agricultural | | | Real Estate-Residential | | | Real Estate-Commercial | | | Real Estate-Construction | | | Equity LOC | | | Total | |
| Pass | | $ | 68,577 | | | $ | 111,276 | | | $ | 14,932 | | | $ | 510,504 | | | $ | 43,337 | | | $ | 35,475 | | | $ | 784,101 | |
| Special Mention | | | 8,047 | | | | 10,651 | | | | 161 | | | | 3,934 | | | | - | | | | - | | | | 22,793 | |
| Substandard | | | 56 | | | | 946 | | | | 231 | | | | 1,669 | | | | 83 | | | | 416 | | | | 3,401 | |
| Doubtful | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total | | $ | 76,680 | | | $ | 122,873 | | | $ | 15,324 | | | $ | 516,107 | | | $ | 43,420 | | | $ | 35,891 | | | $ | 810,295 | |
| | | Consumer Credit Exposure | |
| | | Credit Risk Profile Based on Payment Activity | |
| | | December 31, 2022 | |
| | | Auto | | | Other | | | Total | |
| Grade: | | | | | | | | | | | | |
| Performing | | $ | 96,298 | | | $ | 4,904 | | | $ | 101,202 | |
| Non-performing | | | 452 | | | | - | | | | 452 | |
| Total | | $ | 96,750 | | | $ | 4,904 | | | $ | 101,654 | |
The following table show information related to impaired loans at December 31, 2022, in thousands.
| | | | | | | Unpaid | | | | | | | Average | | | Interest | |
| | | Recorded | | | Principal | | | Related | | | Recorded | | | Income | |
| As of December 31, 2022: | | Investment | | | Balance | | | Allowance | | | Investment | | | Recognized | |
| | | | | | | | | | | | | | | | | | | | | |
| With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| Agricultural | | | 232 | | | | 232 | | | | - | | | | 235 | | | | 17 | |
| Real estate – residential | | | 509 | | | | 541 | | | | - | | | | 514 | | | | 29 | |
| Real estate – commercial | | | - | | | | - | | | | - | | | | - | | | | - | |
| Real estate – construction & land | | | 94 | | | | 94 | | | | - | | | | 98 | | | | 6 | |
| Equity Lines of Credit | | | 244 | | | | 301 | | | | - | | | | 254 | | | | - | |
| Auto | | | - | | | | - | | | | - | | | | - | | | | - | |
| Other | | | - | | | | - | | | | - | | | | - | | | | - | |
| With an allowance recorded: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| Agricultural | | | - | | | | - | | | | - | | | | - | | | | - | |
| Real estate – residential | | | 169 | | | | 169 | | | | 20 | | | | 170 | | | | 7 | |
| Real estate – commercial | | | - | | | | - | | | | - | | | | - | | | | - | |
| Real estate – construction & land | | | - | | | | - | | | | - | | | | - | | | | - | |
| Equity Lines of Credit | | | - | | | | - | | | | - | | | | - | | | | - | |
| Auto | | | - | | | | - | | | | - | | | | - | | | | - | |
| Other | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| Agricultural | | | 232 | | | | 232 | | | | - | | | | 235 | | | | 17 | |
| Real estate – residential | | | 678 | | | | 710 | | | | 20 | | | | 684 | | | | 36 | |
| Real estate – commercial | | | - | | | | - | | | | - | | | | - | | | | - | |
| Real estate – construction & land | | | 94 | | | | 94 | | | | - | | | | 98 | | | | 6 | |
| Equity Lines of Credit | | | 244 | | | | 301 | | | | - | | | | 254 | | | | - | |
| Auto | | | - | | | | - | | | | - | | | | - | | | | - | |
| Other | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total | | $ | 1,248 | | | $ | 1,337 | | | $ | 20 | | | $ | 1,271 | | | $ | 59 | |
The following table shows the ending balance of nonaccrual loans by loan category as of the date indicated:
| | | Non Performing Loans | |
| | | March 31, 2023 | | | December 31, 2022 | |
| (in thousands) | | Nonaccrual with no allowance for credit losses | | | Total nonaccrual | | | Past due 90 days or more and still accruing | | | Nonaccrual with no allowance for credit losses | | | Total nonaccrual | | | Past due 90 days or more and still accruing | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 58 | | | $ | 58 | | | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| Agricultural | | | - | | | | 847 | | | | 214 | | | | - | | | | - | | | | - | |
| Real estate – residential | | | 201 | | | | 201 | | | | - | | | | 211 | | | | 211 | | | | - | |
| Real estate – commercial | | | 965 | | | | 965 | | | | 154 | | | | 9 | | | | 9 | | | | - | |
| Real estate – construction & land development | | | - | | | | - | | | | - | | | | 83 | | | | 83 | | | | - | |
| Equity lines of credit | | | 648 | | | | 648 | | | | - | | | | 417 | | | | 417 | | | | - | |
| Auto | | | 863 | | | | 863 | | | | - | | | | 452 | | | | 452 | | | | - | |
| Other | | | 21 | | | | 21 | | | | - | | | | - | | | | - | | | | - | |
| Total Gross Loans | | $ | 2,756 | | | $ | 3,603 | | | $ | 368 | | | $ | 1,172 | | | $ | 1,172 | | | $ | - | |
At March 31, 2023 there was one nonaccrual loan with an amortized cost of $847,000 that had an allowance for credit losses of $271,000. This allowance was required related to a significant decline in value of the borrower's nut crops.
The following tables show the allocation of the allowance for credit losses at the dates indicated, in thousands:
| Three Months Ended March 31, 2023: | | Commercial | | | Agricultural | | | Real Estate-Residential | | | Real Estate-Commercial | | | Real Estate-Construction | | | Equity LOC | | | Auto | | | Other | | | Total | |
| Allowance for credit losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 892 | | | $ | 1,086 | | | $ | 138 | | | $ | 4,980 | | | $ | 1,500 | | | $ | 687 | | | $ | 1,289 | | | $ | 145 | | | $ | 10,717 | |
| Impact of CECL Adoption | | | 354 | | | | 148 | | | | 2 | | | | 1,488 | | | | (951 | ) | | | (421 | ) | | | 9 | | | | (100 | ) | | | 529 | |
| Charge-offs | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (293 | ) | | | (15 | ) | | | (308 | ) |
| Recoveries | | | 6 | | | | - | | | | 1 | | | | 1 | | | | - | | | | - | | | | 131 | | | | 3 | | | | 142 | |
| Provision | | | 223 | | | | 73 | | | | 21 | | | | 271 | | | | 214 | | | | 64 | | | | 368 | | | | 16 | | | | 1,250 | |
| Ending balance | | $ | 1,475 | | | $ | 1,307 | | | $ | 162 | | | $ | 6,740 | | | $ | 763 | | | $ | 330 | | | $ | 1,504 | | | $ | 49 | | | $ | 12,330 | |
| Three Months Ended March 31, 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for credit losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 1,074 | | | $ | 791 | | | $ | 168 | | | $ | 4,549 | | | $ | 1,325 | | | $ | 426 | | | $ | 1,911 | | | $ | 108 | | | $ | 10,352 | |
| Charge-offs | | | - | | | | - | | | | - | | | | (19 | ) | | | - | | | | - | | | | (335 | ) | | | (19 | ) | | | (373 | ) |
| Recoveries | | | 6 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 114 | | | | 3 | | | | 123 | |
| Provision | | | (187 | ) | | | 156 | | | | (36 | ) | | | (208 | ) | | | 220 | | | | 128 | | | | 190 | | | | 37 | | | | 300 | |
| Ending balance | | $ | 893 | | | $ | 947 | | | $ | 132 | | | $ | 4,322 | | | $ | 1,545 | | | $ | 554 | | | $ | 1,880 | | | $ | 129 | | | $ | 10,402 | |
| March 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for credit losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending balance: individually evaluated for impairment | | $ | - | | | $ | - | | | $ | 23 | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | 23 | |
| Ending balance: collectively evaluated for impairment | | | 893 | | | | 947 | | | | 109 | | | | 4,322 | | | | 1,545 | | | | 554 | | | | 1,880 | | | | 129 | | | | 10,379 | |
| Ending balance | | $ | 893 | | | $ | 947 | | | $ | 132 | | | $ | 4,322 | | | $ | 1,545 | | | $ | 554 | | | $ | 1,880 | | | $ | 129 | | | $ | 10,402 | |
| Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending balance: individually evaluated for impairment | | $ | - | | | $ | 237 | | | $ | 699 | | | $ | 3,276 | | | $ | 100 | | | $ | 362 | | | $ | - | | | $ | - | | | $ | 4,674 | |
| Ending balance: collectively evaluated for impairment | | | 96,787 | | | | 123,179 | | | | 14,938 | | | | 420,235 | | | | 55,568 | | | | 32,240 | | | | 86,768 | | | | 4,297 | | | | 834,012 | |
| Ending balance | | $ | 96,787 | | | $ | 123,416 | | | $ | 15,637 | | | $ | 423,511 | | | $ | 55,668 | | | $ | 32,602 | | | $ | 86,768 | | | $ | 4,297 | | | $ | 838,686 | |
| Year Ended December 31, 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for credit losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 1,074 | | | $ | 791 | | | $ | 168 | | | $ | 4,549 | | | $ | 1,325 | | | $ | 426 | | | $ | 1,911 | | | $ | 108 | | | $ | 10,352 | |
| Charge-offs | | | (207 | ) | | | - | | | | - | | | | (19 | ) | | | - | | | | - | | | | (1,195 | ) | | | (40 | ) | | | (1,461 | ) |
| Recoveries | | | 27 | | | | - | | | | 3 | | | | 2 | | | | - | | | | - | | | | 482 | | | | 12 | | | | 526 | |
| Provision | | | (2 | ) | | | 295 | | | | (33 | ) | | | 448 | | | | 175 | | | | 261 | | | | 91 | | | | 65 | | | | 1,300 | |
| Ending balance | | $ | 892 | | | $ | 1,086 | | | $ | 138 | | | $ | 4,980 | | | $ | 1,500 | | | $ | 687 | | | $ | 1,289 | | | $ | 145 | | | $ | 10,717 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for credit losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending balance: individually evaluated for impairment | | $ | - | | | $ | - | | | $ | 20 | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | 20 | |
| Ending balance: collectively evaluated for impairment | | | 892 | | | | 1,086 | | | | 118 | | | | 4,980 | | | | 1,500 | | | | 687 | | | | 1,289 | | | | 145 | | | | 10,697 | |
| Ending balance | | $ | 892 | | | $ | 1,086 | | | $ | 138 | | | $ | 4,980 | | | $ | 1,500 | | | $ | 687 | | | $ | 1,289 | | | $ | 145 | | | $ | 10,717 | |
| Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending balance: individually evaluated for impairment | | $ | - | | | $ | 232 | | | $ | 678 | | | $ | - | | | $ | 94 | | | $ | 244 | | | $ | - | | | $ | - | | | $ | 1,248 | |
| Ending balance: collectively evaluated for impairment | | | 76,680 | | | | 122,641 | | | | 14,646 | | | | 516,107 | | | | 43,326 | | | | 35,647 | | | | 96,750 | | | | 4,904 | | | | 910,701 | |
| Ending balance | | $ | 76,680 | | | $ | 122,873 | | | $ | 15,324 | | | $ | 516,107 | | | $ | 43,420 | | | $ | 35,891 | | | $ | 96,750 | | | $ | 4,904 | | | $ | 911,949 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table shows an aging analysis of the loan portfolio by the time past due, in thousands:
| | | | | | | | | | | | | | | | | | | Total | | | | | | | | | |
| March 31, 2023 | | | | | | | | | | 90 Days | | | | | | | Past Due | | | | | | | | | |
| | | | 30-59 Days | | | | 60-89 Days | | | | and Still | | | | | | | | and | | | | | | | | | |
| | | Past Due | | | Past Due | | | Accruing | | | Nonaccrual | | | Nonaccrual | | | Current | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 1,667 | | | $ | 2,261 | | | $ | - | | | $ | 58 | | | $ | 3,986 | | | $ | 73,228 | | | $ | 77,214 | |
| Agricultural | | | 373 | | | | - | | | | 214 | | | | 847 | | | | 1,434 | | | | 117,032 | | | | 118,466 | |
| Real estate – residential | | | - | | | | - | | | | - | | | | 201 | | | | 201 | | | | 14,574 | | | | 14,775 | |
| Real estate – commercial | | | 1,888 | | | | - | | | | 154 | | | | 965 | | | | 3,007 | | | | 518,663 | | | | 521,670 | |
| Real estate - construction & land | | | 938 | | | | - | | | | - | | | | - | | | | 938 | | | | 41,404 | | | | 42,342 | |
| Equity Lines of Credit | | | 64 | | | | 134 | | | | - | | | | 648 | | | | 846 | | | | 35,767 | | | | 36,613 | |
| Auto | | | 1,426 | | | | 452 | | | | 0 | | | | 863 | | | | 2,741 | | | | 99,531 | | | | 102,272 | |
| Other | | | 75 | | | | - | | | | 0 | | | | 21 | | | | 96 | | | | 4,904 | | | | 5,000 | |
| Total | | $ | 6,431 | | | $ | 2,847 | | | $ | 368 | | | $ | 3,603 | | | $ | 13,249 | | | $ | 905,103 | | | $ | 918,352 | |
| | | | | | | | | | | | | | | | | | | Total | | | | | | | | | |
| December 31, 2022 | | | | | | | | | | 90 Days | | | | | | | Past Due | | | | | | | | | |
| | | | 30-89 Days | | | | 60-89 Days | | | | and Still | | | | | | | | and | | | | | | | | | |
| | | Past Due | | | Past Due | | | Accruing | | | Nonaccrual | | | Nonaccrual | | | Current | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 750 | | | $ | 195 | | | $ | - | | | $ | - | | | $ | 945 | | | $ | 75,735 | | | $ | 76,680 | |
| Agricultural | | | 877 | | | | - | | | | - | | | | - | | | | 877 | | | | 121,996 | | | | 122,873 | |
| Real estate – residential | | | 437 | | | | - | | | | - | | | | 211 | | | | 648 | | | | 14,676 | | | | 15,324 | |
| Real estate - commercial | | | 3,255 | | | | - | | | | - | | | | 9 | | | | 3,264 | | | | 512,843 | | | | 516,107 | |
| Real estate - construction & land | | | - | | | | - | | | | - | | | | 83 | | | | 83 | | | | 43,337 | | | | 43,420 | |
| Equity Lines of Credit | | | 665 | | | | 53 | | | | - | | | | 417 | | | | 1,135 | | | | 34,756 | | | | 35,891 | |
| Auto | | | 1,862 | | | | 693 | | | | - | | | | 452 | | | | 3,007 | | | | 93,743 | | | | 96,750 | |
| Other | | | 1 | | | | 14 | | | | - | | | | - | | | | 15 | | | | 4,889 | | | | 4,904 | |
| Total | | $ | 7,847 | | | $ | 955 | | | $ | - | | | $ | 1,172 | | | $ | 9,974 | | | $ | 901,975 | | | $ | 911,949 | |
The following tables present the amortized cost basis of collateral dependent loans by class of loans at March 31, 2023, in thousands:
| March 31, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | SFR-1st | | | SFR-2nd | | | Auto | | | Auto | | | | | |
| | | Office | | | Crops | | | Deed | | | Deed | | | New | | | Used | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | - | | | $ | - | | | $ | 57 | | | $ | - | | | $ | - | | | $ | - | | | $ | 57 | |
| Agricultural | | | - | | | | 847 | | | | - | | | | - | | | | - | | | | - | | | | 847 | |
| Real estate – residential | | | - | | | | - | | | | 201 | | | | - | | | | - | | | | - | | | | 201 | |
| Real estate – commercial | | | 951 | | | | - | | | | - | | | | 14 | | | | - | | | | - | | | | 965 | |
| Real estate - construction & land | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Equity Lines of Credit | | | - | | | | - | | | | 296 | | | | 352 | | | | - | | | | - | | | | 648 | |
| Auto | | | - | | | | - | | | | - | | | | - | | | | 608 | | | | 255 | | | | 863 | |
| Other | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total | | $ | 951 | | | $ | 847 | | | $ | 554 | | | $ | 366 | | | $ | 608 | | | $ | 255 | | | $ | 3,581 | |
There were no modifications of loans to debtors experiencing financial difficulty during the three months ended March 31, 2023. There were no new troubled debt restructurings during the twelve months ending December 31, 2022.There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the twelve months ended December 31, 2022.
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