Loans (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Loans

Loan balances as of June 30, 2024 and December 31, 2023 are summarized below:

	(In Thousands)
Loans:	June 30, 2024			December 31, 2023
Consumer Real Estate	$	525,902		$	521,895
Agricultural Real Estate		222,558			223,791
Agricultural		142,909			132,560
Commercial Real Estate		1,303,598			1,337,766
Commercial and Industrial		268,426			254,935
Consumer		70,918			79,591
Other		26,449			30,136
		2,560,760			2,580,674
Less: Net deferred loan fees and costs and other*		(1,022	)		517
		2,559,738			2,581,191
Less: Allowance for credit losses		(25,270	)		(25,024	)
Loans - Net	$	2,534,468		$	2,556,167

Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of June 30, 2024 and December 31, 2023:

	(In Thousands)
	June 30, 2024				December 31, 2023
	Fixed		Variable		Fixed		Variable
Consumer Real Estate	$	320,801	$	205,101	$	329,142	$	192,753
Agricultural Real Estate		123,645		98,913		123,783		100,008
Agricultural		51,483		91,426		56,269		76,291
Commercial Real Estate		970,298		333,300		1,024,989		312,777
Commercial and Industrial		134,074		134,352		131,385		123,550
Consumer		70,889		29		79,526		65
Other		16,967		9,482		20,552		9,584

Contractual Aging of Recorded Investment in Past Due Loans by Portfolio Classification of Loans

The following table represents the contractual aging of the recorded investment in past due loans by portfolio classification of loans as of June 30, 2024 and December 31, 2023, net of deferred loan fees and costs:

	(In Thousands)
June 30, 2024	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Consumer Real Estate	$	2,824	$	288	$	492	$	3,604	$	522,450	$	526,054	$	-
Agricultural Real Estate		5		-		55		60		222,220		222,280		-
Agricultural		352		-		42		394		142,863		143,257		-
Commercial Real Estate		112		-		555		667		1,300,589		1,301,256		-
Commercial and Industrial		47		184		17		248		294,428		294,676		-
Consumer		151		77		57		285		71,318		71,603		-
Total	$	3,491	$	549	$	1,218	$	5,258	$	2,553,868	$	2,559,126	$	-

	(In Thousands)
December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Consumer Real Estate	$	1,914	$	137	$	670	$	2,721	$	519,187	$	521,908	$	-
Agricultural Real Estate		-		3,429		55		3,484		219,995		223,479		-
Agricultural		-		1,132		2,977		4,109		128,654		132,763		-
Commercial Real Estate		380		-		255		635		1,334,440		1,335,075		-
Commercial and Industrial		145		-		199		344		284,550		284,894		-
Consumer		218		37		26		281		80,072		80,353		-
Total	$	2,657	$	4,735	$	4,182	$	11,574	$	2,566,898	$	2,578,472	$	-

Amortized Cost of Nonaccrual Loans by Portfolio Class of Loans

The following tables present the amortized cost of nonaccrual loans by class of loans as of June 30, 2024 and as of December 31, 2023:

	(In Thousands)
	June 30, 2024
	Nonaccrual				Loans Past
	With No				Due Over
	Allowance				89 Days
	for Credit Loss		Nonaccrual		Still Accruing
Consumer Real Estate	$	1,419	$	1,662	$	-
Agricultural Real Estate		60		60		-
Agricultural		47		47		-
Commercial Real Estate		180		555		-
Commercial & Industrial		17		46		-
Consumer		117		117		-
Total	$	1,840	$	2,487	$	-

	(In Thousands)
	December 31, 2023
	Nonaccrual				Loans Past
	With No				Due Over
	Allowance				89 Days
	for Credit Loss		Nonaccrual		Still Accruing
Consumer Real Estate	$	1,006	$	1,190	$	-
Agricultural Real Estate		15,949		15,949		-
Agricultural		4,671		4,671		-
Commercial Real Estate		254		254		-
Commercial & Industrial		198		198		-
Consumer		91		91		-
Total	$	22,169	$	22,353	$	-

Risk Category of Loans by Portfolio Class Based on Year of Origination

The following table represents the risk category of loans by portfolio class and year of origination, net of deferred fees and costs, based on the most recent analysis performed as of June 30, 2024 and December 31, 2023:

	(In Thousands)
	June 30, 2024
															Revolving
															Loans
	Term Loans Amortized Cost Basis by Origination Year												Term		Amortized		Grand
	2024		2023		2022		2021		2020		Prior		Total		Cost Basis		Total
Consumer Real Estate
Risk Rating
Pass (1-4)	$	21,403	$	69,543	$	83,893	$	94,023	$	80,808	$	116,593	$	466,263	$	56,296	$	522,559
Special Mention (5)		-		-		38		419		-		258		715		104		819
Substandard (6)		-		-		228		685		224		1,524		2,661		15		2,676
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Consumer Real Estate	$	21,403	$	69,543	$	84,159	$	95,127	$	81,032	$	118,375	$	469,639	$	56,415	$	526,054
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	13	$	13	$	-	$	13
Agricultural Real Estate
Risk Rating
Pass (1-4)	$	18,712	$	28,876	$	35,667	$	23,766	$	24,960	$	82,495	$	214,476	$	92	$	214,568
Special Mention (5)		6,000		899		738		-		-		-		7,637		-		7,637
Substandard (6)		-		-		-		-		-		75		75		-		75
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Agricultural Real Estate	$	24,712	$	29,775	$	36,405	$	23,766	$	24,960	$	82,570	$	222,188	$	92	$	222,280
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural
Risk Rating
Pass (1-4)	$	5,878	$	13,472	$	16,645	$	7,035	$	3,739	$	4,356	$	51,125	$	86,671	$	137,796
Special Mention (5)		3,810		26		69		10		-		-		3,915		1,493		5,408
Substandard (6)		-		11		-		-		42		-		53		-		53
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Agricultural	$	9,688	$	13,509	$	16,714	$	7,045	$	3,781	$	4,356	$	55,093	$	88,164	$	143,257
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	(In Thousands)
	June 30, 2024
															Revolving
															Loans
	Term Loans Amortized Cost Basis by Origination Year												Term		Amortized		Grand
	2024		2023		2022		2021		2020		Prior		Total		Cost Basis		Total
Commercial Real Estate
Risk Rating
Pass (1-4)	$	47,413	$	209,715	$	436,437	$	225,307	$	119,607	$	224,300	$	1,262,779	$	-	$	1,262,779
Special Mention (5)		-		34,728		-		968		1,381		-		37,077		-		37,077
Substandard (6)		-		-		-		-		-		1,400		1,400		-		1,400
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Commercial Real Estate	$	47,413	$	244,443	$	436,437	$	226,275	$	120,988	$	225,700	$	1,301,256	$	-	$	1,301,256
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial & Industrial
Risk Rating
Pass (1-4)	$	17,173	$	56,402	$	45,307	$	18,127	$	16,776	$	2,040	$	155,825	$	105,738	$	261,563
Special Mention (5)		448		891		40		199		-		721		2,299		3,476		5,775
Substandard (6)		-		84		14		-		-		170		268		621		889
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Commercial & Industrial	$	17,621	$	57,377	$	45,361	$	18,326	$	16,776	$	2,931	$	158,392	$	109,835	$	268,227
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	101	$	-	$	101	$	-	$	101
Other
Risk Rating
Pass (1-4)	$	-	$	-	$	-	$	16,604	$	5,464	$	4,381	$	26,449	$	-	$	26,449
Special Mention (5)		-		-		-		-		-		-		-		-		-
Substandard (6)		-		-		-		-		-		-		-		-		-
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Other	$	-	$	-	$	-	$	16,604	$	5,464	$	4,381	$	26,449	$	-	$	26,449
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	(In Thousands)
	December 31, 2023
															Revolving
															Loans
	Term Loans Amortized Cost Basis by Origination Year												Term		Amortized		Grand
	2023		2022		2021		2020		2019		Prior		Total		Cost Basis		Total
Consumer Real Estate
Risk Rating
Pass (1-4)	$	77,298	$	88,695	$	90,139	$	82,680	$	32,302	$	94,294	$	465,408	$	52,904	$	518,312
Special Mention (5)		1,228		40		-		-		-		134		1,402		-		1,402
Substandard (6)		-		261		558		163		246		952		2,180		14		2,194
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Consumer Real Estate	$	78,526	$	88,996	$	90,697	$	82,843	$	32,548	$	95,380	$	468,990	$	52,918	$	521,908
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural Real Estate
Risk Rating
Pass (1-4)	$	30,504	$	37,199	$	25,168	$	25,874	$	18,456	$	68,651	$	205,852	$	97	$	205,949
Special Mention (5)		-		861		14		-		149		359		1,383		-		1,383
Substandard (6)		-		-		12,196		186		259		3,506		16,147		-		16,147
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Agricultural Real Estate	$	30,504	$	38,060	$	37,378	$	26,060	$	18,864	$	72,516	$	223,382	$	97	$	223,479
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural
Risk Rating
Pass (1-4)	$	17,787	$	20,330	$	8,356	$	4,476	$	3,856	$	1,880	$	56,685	$	69,824	$	126,509
Special Mention (5)		38		621		112		-		-		-		771		330		1,101
Substandard (6)		514		634		2,009		498		-		-		3,655		1,498		5,153
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Agricultural	$	18,339	$	21,585	$	10,477	$	4,974	$	3,856	$	1,880	$	61,111	$	71,652	$	132,763
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	(In Thousands)
	December 31, 2023
															Revolving
															Loans
	Term Loans Amortized Cost Basis by Origination Year												Term		Amortized		Grand
	2023		2022		2021		2020		2019		Prior		Total		Cost Basis		Total
Commercial Real Estate
Risk Rating
Pass (1-4)	$	224,232	$	438,716	$	245,273	$	122,656	$	136,225	$	99,378	$	1,266,480	$	-	$	1,266,480
Special Mention (5)		34,864		9,100		-		10,793		626		12,342		67,725		-		67,725
Substandard (6)		-		-		-		-		-		795		795		-		795
Doubtful (7)		-		-		-		75		-		-		75		-		75
Total Commercial Real Estate	$	259,096	$	447,816	$	245,273	$	133,524	$	136,851	$	112,515	$	1,335,075	$	-	$	1,335,075
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial & Industrial
Risk Rating
Pass (1-4)	$	56,224	$	51,663	$	24,876	$	20,071	$	2,142	$	932	$	155,908	$	90,018	$	245,926
Special Mention (5)		716		69		211		146		437		357		1,936		6,016		7,952
Substandard (6)		74		454		-		-		31		17		576		122		698
Doubtful (7)		-		-		-		182		-		-		182		-		182
Total Commercial & Industrial	$	57,014	$	52,186	$	25,087	$	20,399	$	2,610	$	1,306	$	158,602	$	96,156	$	254,758
Gross charge-offs YTD	$	-	$	-	$	-	$	565	$	-	$	-	$	565	$	-	$	565
Other
Risk Rating
Pass (1-4)	$	2,810	$	-	$	16,761	$	5,790	$	445	$	4,330	$	30,136	$	-	$	30,136
Special Mention (5)		-		-		-		-		-		-		-		-		-
Substandard (6)		-		-		-		-		-		-		-		-		-
Doubtful (7)		-		-		-		-		-		-		-		-		-
Total Other	$	2,810	$	-	$	16,761	$	5,790	$	445	$	4,330	$	30,136	$	-	$	30,136
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of June 30, 2024 and December 31, 2023 by year of origination.

	(In Thousands)
	June 30, 2024
															Revolving
															Loans
	Term Loans Amortized Cost Basis by Origination Year												Term		Amortized		Grand
	2024		2023		2022		2021		2020		Prior		Total		Cost Basis		Total
Consumer
Payment Performance
Performing	$	7,478	$	17,545	$	33,802	$	7,892	$	3,507	$	1,220	$	71,444	$	41	$	71,485
Nonperforming		-		58		55		-		5		-		118		-		118
Total Consumer	$	7,478	$	17,603	$	33,857	$	7,892	$	3,512	$	1,220	$	71,562	$	41	$	71,603
Gross charge-offs YTD	$	83	$	27	$	43	$	10	$	-	$	-	$	163	$	-	$	163

	(In Thousands)
	December 31, 2023
															Revolving
															Loans
	Term Loans Amortized Cost Basis by Origination Year												Term		Amortized		Grand
	2023		2022		2021		2020		2019		Prior		Total		Cost Basis		Total
Consumer
Payment Performance
Performing	$	21,511	$	40,729	$	10,666	$	5,006	$	1,825	$	480	$	80,217	$	44	$	80,261
Nonperforming		26		58		-		6		-		2		92		-		92
Total Consumer	$	21,537	$	40,787	$	10,666	$	5,012	$	1,825	$	482	$	80,309	$	44	$	80,353
Gross charge-offs YTD	$	236	$	51	$	100	$	38	$	-	$	-	$	425	$	-	$	425

Collateral-dependent Loans

The following tables present collateral-dependent loans grouped by collateral as of June 30, 2024 and December 31, 2023:

	(In Thousands)
	June 30, 2024
	Collateral
	Dependent Loans
Consumer Real Estate	$	2,191
Agricultural Real Estate		-
Agricultural		-
Commercial Real Estate		540
Commercial & Industrial		45
Consumer		-
Total	$	2,776

	(In Thousands)
	December 31, 2023
	Collateral
	Dependent Loans
Consumer Real Estate	$	1,518
Agricultural Real Estate		15,888
Agricultural		4,998
Commercial Real Estate		255
Commercial & Industrial		17
Consumer		-
Total	$	22,676

Analysis of Allowance for Credit Losses

	(In Thousands)
	Consumer Real Estate			Agricultural Real Estate			Agricultural			Commercial Real Estate		Commercial and Industrial		Consumer			Total
Three Months Ended June 30, 2024
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	3,285		$	1,171		$	377		$	15,953	$	2,732	$	1,162		$	24,680
Provision for credit losses - loans		(82	)		(245	)		(92	)		365		596		63			605
Charge-offs		(3	)		-			-			-		-		(82	)		(85	)
Recoveries		1			-			-			1		39		29			70
Ending Balance	$	3,201		$	926		$	285		$	16,319	$	3,367	$	1,172		$	25,270

	(In Thousands)
	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial			Consumer			Total
Six Months Ended June 30, 2024
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	3,581		$	312	$	336		$	17,400		$	2,093		$	1,302		$	25,024
Provision for credit losses-loans		(372	)		614		(51	)		(1,085	)		1,270			(60	)		316
Charge-offs		(13	)		-		-			-			(101	)		(163	)		(277	)
Recoveries		5			-		-			4			105			93			207
Ending Balance	$	3,201		$	926	$	285		$	16,319		$	3,367		$	1,172		$	25,270

	(In Thousands)
	Consumer Real Estate		Agricultural Real Estate			Agricultural		Commercial Real Estate		Commercial and Industrial			Consumer			Total
Three Months Ended June 30, 2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	3,623	$	209		$	66	$	16,088	$	3,414		$	1,234		$	24,634
Provision for credit losses - loans		369		(76	)		41		590		(653	)		(128	)		143
Charge-offs		-		-			-		-		-			(60	)		(60	)
Recoveries		6		104			-		3		6			74			193
Ending Balance	$	3,998	$	237		$	107	$	16,681	$	2,767		$	1,120		$	24,910

	(In Thousands)
	Consumer Real Estate		Agricultural Real Estate			Agricultural			Commercial Real Estate		Commercial and Industrial			Consumer			Total
Six Months Ended June 30, 2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	998	$	349		$	751		$	11,924	$	5,382		$	909		$	20,313
Adoption of ASU 2016-13		2,874		(166	)		(650	)		3,501		(2,165	)		170			3,564
Provision for credit losses-loans		113		(50	)		6			1,251		(462	)		102			960
Charge-offs		-		-			-			-		-			(182	)		(182	)
Recoveries		13		104			-			5		12			121			255
Ending Balance	$	3,998	$	237		$	107		$	16,681	$	2,767		$	1,120		$	24,910

	(In Thousands)
	Consumer Real Estate			Agricultural Real Estate			Agricultural			Commercial Real Estate		Commercial and Industrial			Consumer			Total
Year Ended December 31, 2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	998		$	349		$	751		$	11,924	$	5,382		$	909		$	20,313
Adoption of ASU 2016-13		2,874			(166	)		(650	)		3,501		(2,165	)		170			3,564
Provision for credit losses - loans		(326	)		24			225			1,967		(643	)		451			1,698
Charge-offs		-			-			-			-		(565	)		(425	)		(990	)
Recoveries		35			105			10			8		84			197			439
Ending Balance	$	3,581		$	312		$	336		$	17,400	$	2,093		$	1,302		$	25,024

The following tables break down the activity in the AULC for the three and six months ended June 30, 2024 and June 30, 2023 in addition to the ending balances as of December 31, 2023:

	(In Thousands)
	Unfunded Loan Commitment & Letters of Credit
Three Months Ended June 30, 2024
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT
Beginning balance	$	1,946
Provision for credit losses - off balance sheet credit exposures		(18	)
Charge-offs		-
Recoveries		-
Ending Balance	$	1,928

	(In Thousands)
	Unfunded Loan Commitment & Letters of Credit
Six Months Ended June 30, 2024
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT
Beginning balance	$	2,212
Provision for credit losses-off balance sheet credit exposures		(284	)
Charge-offs		-
Recoveries		-
Ending Balance	$	1,928

	(In Thousands)
	Unfunded Loan Commitment & Letters of Credit
Three Months Ended June 30, 2023
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT
Beginning balance	$	2,228
Provision for credit losses - off balance sheet credit exposures		(129	)
Charge-offs		-
Recoveries		-
Ending Balance	$	2,099

	(In Thousands)
	Unfunded Loan Commitment & Letters of Credit
Six Months Ended June 30, 2023
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT
Beginning balance	$	1,262
Adoption of ASU 2016-13		904
Provision for credit losses-off balance sheet credit exposures		(67	)
Charge-offs		-
Recoveries		-
Ending Balance	$	2,099

	(In Thousands)
	Unfunded Loan Commitment & Letters of Credit
Year Ended December 31, 2023
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT
Beginning balance	$	1,262
Adoption of ASU 2016-13		904
Provision for credit losses - off balance sheet credit exposures		46
Charge-offs		-
Recoveries		-
Ending Balance	$	2,212