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Loans (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of Loan Balances

Loan balances at year end were as follows:


				2023				2022
(In Thousands of Dollars)
Commercial real estate
Owner occupied				$	399,273			$	330,768
Non-owner occupied					712,315				563,652
Farmland					202,950				188,850
Other					224,218				133,630
Commercial
Commercial and industrial					346,354				293,643
Agricultural					58,338				58,087
Residential real estate
1-4 family residential					843,697				475,791
Home equity lines of credit					142,441				132,179
Consumer
Indirect					226,815				197,125
Direct					23,805				16,421
Other					9,164				7,714
Total originated loans				$	3,189,370			$	2,397,860
Net deferred loan costs					8,757				6,890
Allowance for credit losses					(34,440	)			(26,978	)
Net loans				$	3,163,687			$	2,377,772

Activity in the Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for credit losses by portfolio segment for years ended December 31, 2023, 2022 and 2021:


December 31, 2023		Commercial Real Estate				Commercial				Residential Real Estate				Consumer				Total
(In Thousands of Dollars)
Allowance for credit losses
Beginning balance		$	14,840			$	4,186			$	4,374			$	3,578			$	26,978
PCD ACL on loans acquired			850				138				11				0				999
Provision for credit losses			2,808				1,931				2,834				1,145				8,718
Loans charged off			(349	)			(1,272	)			(384	)			(932	)			(2,937	)
Recoveries			1				104				81				496				682
Total ending allowance balance		$	18,150			$	5,087			$	6,916			$	4,287			$	34,440


December 31, 2022		Commercial Real Estate				Commercial				Residential Real Estate				Consumer				Total
(In Thousands of Dollars)
Allowance for credit losses
Beginning balance		$	15,879			$	4,949			$	4,870			$	3,688			$	29,386
Provision for credit losses			(742	)			1,204				(493	)			281				250
Loans charged off			(300	)			(2,042	)			(92	)			(870	)			(3,304	)
Recoveries			3				75				89				479				646
Total ending allowance balance		$	14,840			$	4,186			$	4,374			$	3,578			$	26,978


December 31, 2021		Commercial Real Estate				Commercial				Residential Real Estate				Consumer				Total
Allowance for credit losses
Beginning balance		$	10,746			$	5,018			$	3,687			$	2,693			$	22,144
Impact of CECL adoption			(2,137	)			259				193				3,845				2,160
Provision for credit losses			6,226				(349	)			1,121				(2,349	)			4,649
PCD ACL on loans acquired			1,081				210				4				0				1,295
Loans charged off			(70	)			(388	)			(297	)			(912	)			(1,667	)
Recoveries			33				199				162				411				805
Total ending allowance balance		$	15,879			$	4,949			$	4,870			$	3,688			$	29,386

Schedule of Amortized Cost Basis in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of December 31, 2023:


(In Thousands of Dollars)		Nonaccrual with no allowance for credit loss				Nonaccrual with an allowance for credit loss				Loans past due over 89 days still accruing
December 31, 2023
Commercial real estate
Owner occupied		$	1,804			$	830			$	0
Non-owner occupied			19				1,491				0
Farmland			1,957				9				0
Other			0				80				0
Commercial
Commercial and industrial			394				1,408				0
Agricultural			203				317				0
Residential real estate
1-4 family residential			348				3,009				460
Home equity lines of credit			240				210				69
Consumer
Indirect			22				300				125
Direct			65				69				1
Other			0				5				0
Total loans		$	5,052			$	7,728			$	655

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of December 31, 2022:


		2022
		Nonaccrual				Loans Past Due 90 Days or More Still Accruing
(In Thousands of Dollars)
Commercial real estate
Owner occupied		$	993			$	0
Non-owner occupied			3,031				0
Farmland			2,183				0
Other			33
Commercial
Commercial and industrial			3,840				50
Agricultural			299				0
Residential real estate
1-4 family residential			2,703				310
Home equity lines of credit			735				58
Consumer
Indirect			313				62
Direct			179				12
Other			2				0
Total loans		$	14,311			$	492

Schedule of Amortized Cost Basis in Past Due Loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2023:


(In Thousands of Dollars)		Real Estate				Business Assets				Vehicles				Cash
December 31, 2023
Commercial real estate
Owner occupied		$	1,804			$	0			$	0			$	0
Non-owner occupied			1,335				0				0				0
Farmland			1,957				0				0				0
Other			0				0				0				0
Commercial
Commercial and industrial			94				867				0				0
Agricultural			0				203				0				0
Residential real estate
1-4 family residential			3,352				0				0				0
Home equity lines of credit			294				0				0				0
Consumer
Indirect			0				0				53				0
Direct			0				0				19				66
Other			0				0				0				0
Total loans		$	8,836			$	1,070			$	72			$	66

The following tables present the aging of the amortized cost basis in past due loans as of December 31, 2023 and 2022 by class of loans:


December 31, 2023		30-59 Days Past Due				60-89 Days Past Due				90 Days or More Past Due and Nonaccrual				Total Past Due				Loans Not Past Due				Total
(In Thousands of Dollars)
Commercial real estate
Owner occupied		$	302			$	293			$	2,634			$	3,229			$	395,799			$	399,028
Non-owner occupied			90				0				1,510				1,600				710,195				711,795
Farmland			365				0				1,966				2,331				200,395				202,726
Other			0				0				80				80				223,697				223,777
Commercial
Commercial and industrial			540				199				1,802				2,541				345,278				347,819
Agricultural			292				40				520				852				58,223				59,075
Residential real estate
1-4 family residential			6,819				4,488				3,817				15,124				828,437				843,561
Home equity lines of credit			729				34				519				1,282				141,189				142,471
Consumer
Indirect			2,045				289				447				2,781				232,105				234,886
Direct			153				23				135				311				23,514				23,825
Other			4				0				5				9				9,155				9,164
Total loans		$	11,339			$	5,366			$	13,435			$	30,140			$	3,167,987			$	3,198,127


December 31, 2022		30-59 Days Past Due				60-89 Days Past Due				90 Days or More Past Due and Nonaccrual				Total Past Due				Loans Not Past Due				Total
Commercial real estate
Owner occupied		$	159			$	0			$	993			$	1,152			$	329,305			$	330,457
Non-owner occupied			0				0				3,031				3,031				560,013				563,044
Farmland			0				0				2,183				2,183				186,399				188,582
Other			0				0				33				33				133,288				133,321
Commercial
Commercial and industrial			1,034				185				3,890				5,109				289,297				294,406
Agricultural			104				20				299				423				58,166				58,589
Residential real estate
1-4 family residential			4,247				1,775				3,013				9,035				466,313				475,348
Home equity lines of credit			115				92				793				1,000				131,209				132,209
Consumer
Indirect			1,267				298				375				1,940				202,683				204,623
Direct			234				70				191				495				15,962				16,457
Other			0				5				2				7				7,707				7,714
Total loans:		$	7,160			$	2,445			$	14,803			$	24,408			$	2,380,342			$	2,404,750

Schedule of Amortized Cost Basis for Loans Restructured


December 31, 2023		Amortized Cost
(In Thousands of Dollars)		Term Extension				Interest Rate Reduction				Combination Term Extension and Interest Rate Reduction				Total				% of Total Class of Financing Receivable
Residential real estate
1-4 family residential		$	48			$	30			$	132			$	210				0.03	%
Total modifications to borrowers experiencing financial difficulty		$	48			$	30			$	132			$	210				0.01	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023:

For purposes of this disclosure a default occurs when within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms:


December 31, 2023		Amortized Cost
(In Thousands of Dollars)		Term Extension				Interest Rate Reduction				Combination Term Extension and Interest Rate Reduction
Residential real estate
1-4 family residential		$	0			$	30			$	0
Total modifications to borrowers experiencing financial difficulty		$	0			$	30			$	0

Schedule of Performance of Loans that Modified

The following table presents the performance of such loans that have been modified in the twelve months ended December 31, 2023:


December 31, 2023		Payment status (Amortized cost Basis)
(In Thousands of Dollars)		Current				30-89 Days past due				90+ Days past due
Accrual restructured loans
Residential real estate
1-4 family residential		$	132			$	30			$	0
Total accruing restructured loans		$	132			$	30			$	0

Nonaccrual restructured loans
Residential real estate
1-4 family residential		$	48			$	0			$	0
Total nonaccrual restructured loans		$	48			$	0			$	0
Total restructured loans		$	180			$	30			$	0

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:


December 31, 2023		Pass				Special Mention				Sub standard				Total
(In Thousands of Dollars)
Commercial real estate
Owner occupied		$	386,015			$	9,628			$	3,385			$	399,028
Non-owner occupied			648,063				27,938				35,794				711,795
Farmland			200,240				0				2,486				202,726
Other			215,459				0				8,318				223,777
Commercial
Commercial and industrial			334,764				646				12,409				347,819
Agricultural			58,506				17				552				59,075
Total loans		$	1,843,047			$	38,229			$	62,944			$	1,944,220


December 31, 2022		Pass				Special Mention				Sub standard				Total

Commercial real estate
Owner occupied		$	324,979			$	1,193			$	4,285			$	330,457
Non-owner occupied			527,267				25,541				10,236				563,044
Farmland			186,057				0				2,525				188,582
Other			133,218				0				103				133,321
Commercial
Commercial and industrial			282,412				777				11,217				294,406
Agricultural			58,002				250				337				58,589
Total loans		$	1,511,935			$	27,761			$	28,703			$	1,568,399

Investment in Residential, Consumer and Indirect Auto Loans Based on Payment Activity

The following table presents the amortized cost in residential, consumer and indirect auto loans based on payment activity. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans.


		Residential Real Estate								Consumer
December 31, 2023		1-4 Family Residential				Home Equity Lines of Credit				Indirect				Direct				Other
(In Thousands of Dollars)
Performing		$	839,744			$	141,952			$	234,439			$	23,690			$	9,159
Nonperforming			3,817				519				447				135				5
Total loans		$	843,561			$	142,471			$	234,886			$	23,825			$	9,164


		Residential Real Estate								Consumer
December 31, 2022		1-4 Family Residential				Home Equity Lines of Credit				Indirect				Direct				Other

Performing		$	472,335			$	131,416			$	204,248			$	16,266			$	7,712
Nonperforming			3,013				793				375				191				2
Total loans		$	475,348			$	132,209			$	204,623			$	16,457			$	7,714

Risk Categories and Year of Origination

The following table presents total loans by risk categories and year of origination.


		Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023		2023				2022				2021				2020				2019				Prior				Revolving Loans				Total
Commercial real estate
Risk Rating
Pass		$	176,071			$	250,364			$	202,288			$	128,800			$	138,444			$	338,829			$	14,741			$	1,249,537
Special mention			0				293				12,156				8,779				6,565				9,773				0				37,566
Substandard			0				0				3,972				18,232				3,982				20,627				684				47,497
Total commercial real estate loans		$	176,071			$	250,657			$	218,416			$	155,811			$	148,991			$	369,229			$	15,425			$	1,334,600

Commercial real estate current period gross write-offs		$	0			$	0			$	0			$	0			$	145			$	204			$	0			$	349

Commercial and industrial
Risk Rating
Pass		$	90,807			$	85,255			$	40,444			$	21,794			$	9,736			$	23,030			$	63,698			$	334,764
Special mention			0				141				355				21				0				0				129				646
Substandard			195				3,551				980				404				1,077				699				5,503				12,409
Total commercial loans		$	91,002			$	88,947			$	41,779			$	22,219			$	10,813			$	23,729			$	69,330			$	347,819

Commercial and industrial current period gross write-offs		$	0			$	178			$	579			$	11			$	16			$	394			$	0			$	1,178

Agricultural
Risk Rating
Pass		$	36,314			$	57,469			$	29,807			$	37,620			$	20,020			$	61,033			$	16,483			$	258,746
Special mention			0				0				0				0				0				0				17				17
Substandard			0				33				448				225				50				2,282				0				3,038
Total agricultural loans		$	36,314			$	57,502			$	30,255			$	37,845			$	20,070			$	63,315			$	16,500			$	261,801

Agricultural current period gross write-offs		$	0			$	15			$	70			$	3			$	0			$	6			$	0			$	94

Residential real estate
Risk Rating
Pass		$	63,365			$	171,587			$	164,271			$	132,022			$	49,035			$	245,980			$	3,652			$	829,912
Special mention			0				229				0				66				107				1,655				0				2,057
Substandard			37				104				510				2,546				353				8,042				0				11,592
Total residential real estate loans		$	63,402			$	171,920			$	164,781			$	134,634			$	49,495			$	255,677			$	3,652			$	843,561

Residential real estate current period gross write-offs		$	52			$	0			$	49			$	130			$	0			$	129			$	0			$	360

Home equity lines of credit
Risk Rating
Pass		$	0			$	19			$	14			$	44			$	7			$	1,911			$	138,356			$	140,351
Special mention			0				0				0				0				0				0				0				0
Substandard			0				26				13				82				44				1,856				99				2,120
Total home equity lines of credit		$	0			$	45			$	27			$	126			$	51			$	3,767			$	138,455			$	142,471

Home equity lines of credit current period gross write-offs		$	0			$	0			$	0			$	8			$	0			$	16			$	0			$	24

Consumer
Risk Rating
Pass		$	77,977			$	75,517			$	34,754			$	22,580			$	12,344			$	34,840			$	9,002			$	267,014
Substandard			54				125				175				188				133				186				0				861
Total consumer loans		$	78,031			$	75,642			$	34,929			$	22,768			$	12,477			$	35,026			$	9,002			$	267,875

Consumer current period gross write-offs		$	44			$	176			$	93			$	86			$	32			$	352			$	149			$	932


		Term Loans Amortized Cost Basis by Origination Year

As of December 31, 2022		2022				2021				2020				2019				2018				Prior				Revolving Loans				Total
Commercial real estate
Risk Rating
Pass		$	188,240			$	174,841			$	120,883			$	138,342			$	89,769			$	256,103			$	17,286			$	985,464
Special mention			0				711				1,861				5,286				624				18,252				0				26,734
Substandard			0				18				256				1,968				267				10,952				1,163				14,624
Total commercial real estate loans		$	188,240			$	175,570			$	123,000			$	145,596			$	90,660			$	285,307			$	18,449			$	1,026,822

Commercial
Risk Rating
Pass		$	100,368			$	45,872			$	34,110			$	16,854			$	13,574			$	14,664			$	56,970			$	282,412
Special mention			0				197				0				0				0				0				580				777
Substandard			3,642				1,331				356				152				110				1,761				3,865				11,217
Total commercial loans		$	104,010			$	47,400			$	34,466			$	17,006			$	13,684			$	16,425			$	61,415			$	294,406

Agricultural
Risk Rating
Pass		$	51,096			$	36,376			$	44,133			$	23,661			$	24,003			$	45,490			$	19,300			$	244,059
Special mention			0				0				0				0				0				0				250				250
Substandard			0				379				235				72				0				2,146				30				2,862
Total agricultural loans		$	51,096			$	36,755			$	44,368			$	23,733			$	24,003			$	47,636			$	19,580			$	247,171

Residential real estate
Risk Rating
Pass		$	83,951			$	112,463			$	76,095			$	31,404			$	22,918			$	135,757			$	3,956			$	466,544
Special mention			0				0				70				118				76				93				0				357
Substandard			0				136				249				121				9				7,932				0				8,447
Total residential real estate loans		$	83,951			$	112,599			$	76,414			$	31,643			$	23,003			$	143,782			$	3,956			$	475,348

Home equity lines of credit
Risk Rating
Pass		$	0			$	10			$	0			$	0			$	16			$	1,394			$	128,622			$	130,042
Special mention			0				0				0				0				0				0				49				49
Substandard			0				13				137				20				0				1,848				100				2,118
Total home equity lines of credit		$	0			$	23			$	137			$	20			$	16			$	3,242			$	128,771			$	132,209

Consumer
Risk Rating
Pass		$	98,530			$	46,945			$	32,284			$	20,849			$	10,918			$	10,942			$	7,302			$	227,770
Special mention			0				0				0				0				0				0				0				0
Substandard			102				113				267				230				109				202				1				1,024
Total consumer loans		$	98,632			$	47,058			$	32,551			$	21,079			$	11,027			$	11,144			$	7,303			$	228,794

Summary of Loan Pools and Methodology Used in Calculation of Allowance for Credit Losses

The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2023.


Portfolio Segments		Loan Pool		Methodology		Loss Drivers
Residential real estate		1-4 Family Residential Real Estate - 1st Liens		Cohort		Credit Loss History
		1-4 Family Residential Real Estate - 2nd Liens		Cohort		Credit Loss History
Home Equity Lines of Credit		Home Equity Lines of Credit		Cohort		Credit Loss History
Consumer Finance		Cash Reserves		Cohort		Credit Loss History
		Direct		Cohort		Credit Loss History
		Indirect		Cohort		Credit Loss History
Commercial		Commercial and Industrial		PD/LGD		Credit Loss History
		Agricultural		PD/LGD		Credit Loss History
		Municipal		PD/LGD		Credit Loss History
Commercial real estate		Owner Occupied		PD/LGD		Credit Loss History
		Non-Owner Occupied		PD/LGD		Credit Loss History
		Multifamily		PD/LGD		Credit Loss History
		Farmland		PD/LGD		Credit Loss History
		Construction		PD/LGD		Credit Loss History

Schedule of Par Value of Purchased Loans


		2023
Par value of acquired loans at acquisition		$	797,616
Net purchase discount			(55,958	)
Allowance for credit losses of PCD loans			(999	)
Purchase price of loans at acquisition		$	740,659

Schedule of Outstanding Balance and Related Allowance on Loans

The outstanding balance at December 31, 2023 and related allowance on PCD loans is as follows (in thousands):


		Loan Balance				ACL Balance
Commercial real estate
Owner Occupied		$	430			$	19
Non-owner Occupied			30,653				914
Farmland			9				0
Commercial
Commercial and industrial			2,229				158
Agricultural			149				9
Residential real estate
1-4 family residential			1,211				7
Home equity lines of credit			3				0
Total		$	34,684			$	1,107