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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loans by Type as Percentage of Portfolio

Loans by type as a percentage of the portfolio were as follows:


	March 31, 2024							December 31, 2023
(Dollars in thousands)	Balance			%				Balance			%				Percent Increase (Decrease)
Agricultural	$	41,950			3.0	%		$	49,210			3.5	%			(14.8	)	%
Commercial and Industrial		231,222			16.3	%			229,915			16.3	%			0.6		%
Commercial Real Estate		794,705			56.0	%			786,921			55.8	%			1.0		%
Consumer		34,268			2.4	%			36,541			2.6	%			(6.2	)	%
Construction Real Estate		17,890			1.3	%			20,936			1.5	%			(14.5	)	%
Residential Real Estate		268,523			18.9	%			267,730			19.0	%			0.3		%
Loans to Other Financial Institutions		30,032			2.1	%			19,400			1.4	%			54.8		%
Gross Loans	$	1,418,590						$	1,410,653

Allowance for credit losses		16,037			1.13	%			15,685			1.11	%

Net loans	$	1,402,553						$	1,394,968

Allowance for Credit Losses and Balances in Loan Portfolio

Activity in the allowance for credit losses and balances in the loan portfolio were as follows:


						Commercial																				Loans to Other
(Dollars in thousands)						And								Commercial				Construction				Residential				Financial
		Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Institutions				Total
Allowance for Credit Losses Three Months Ended March 31, 2024
Beginning balance		$	94			$	2,216			$	823			$	8,820			$	58			$	3,644			$	30			$	15,685
Charge-offs			-				(1	)			(123	)			-				-				-				-				(124	)
Recoveries			-				9				60				-				-				4				-				73
Provision			3				19				158				347				(9	)			(135	)			20				403
Ending balance		$	97			$	2,243			$	918			$	9,167			$	49			$	3,513			$	50			$	16,037


Individually evaluated for credit loss		$	2			$	7			$	116			$	1			$	-			$	136			$	-			$	262

Collectively evaluated for credit loss		$	95			$	2,236			$	802			$	9,166			$	49			$	3,377			$	50			$	15,775

Loans
March 31, 2024
Individually evaluated for credit loss		$	44			$	174			$	238			$	29			$	-			$	1,994			$	-			$	2,479
Collectively evaluated for credit loss			41,906				231,048				34,030				794,676				17,890				266,529				30,032				1,416,111
Ending balance		$	41,950			$	231,222			$	34,268			$	794,705			$	17,890			$	268,523			$	30,032			$	1,418,590


					Commercial																				Loans to Other
(Dollars in thousands)					and								Commercial				Construction				Residential				Financial
	Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Institutions				Total
Allowance for Loan Losses
December 31, 2023
Individually evaluated for impairment	$	2			$	6			$	-			$	1			$	—			$	51			$	—			$	60

Collectively evaluated for impairment	$	92			$	2,210			$	823			$	8,819			$	58			$	3,593			$	30			$	15,625


Loans
December 31, 2023
Individually evaluated for impairment	$	54			$	136			$	2			$	29			$	—			$	1,858			$	—			$	2,079
Collectively evaluated for impairment	$	49,156			$	229,779			$	36,539			$	786,892			$	20,936			$	265,872			$	19,400				1,408,574
Acquired with deteriorated credit quality	—					-				-				-			—					-								-
Ending balance	$	49,210			$	229,915			$	36,541			$	786,921			$	20,936			$	267,730			$	19,400			$	1,410,653


					Commercial
(Dollars in thousands)					and								Commercial				Construction				Residential
	Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Unallocated				Total
Allowance for Loan Losses Three Months Ended March 31, 2023
Beginning balance	$	144			$	1,361			$	310			$	4,822			$	63			$	906			$	13			$	7,619
Cumulative effect of change in accounting principle		14				1,587				541				3,006				20				2,010				(13	)			7,165
Charge-offs		-				-				(140	)			-				-				-				-				(140	)
Recoveries		-				27				69				13				-				3				-				112
Provision		(23	)			45				133				(4	)			(10	)			168				-				309
Ending balance	$	135			$	3,020			$	913			$	7,837			$	73			$	3,087			$	-			$	15,065

Individually evaluated for impairment	$	1			$	7			$	1			$	1			$	-			$	42			$	-			$	52

Collectively evaluated for impairment	$	134			$	3,013			$	912			$	7,836			$	73			$	3,045			$	-			$	15,013

Schedule of Amortized Cost Basis of Loans

The following table reflects the amortized cost basis of loans as of March 31, 2024 based on year of origination (dollars in thousands):


Commercial:	2024				2023				2022				2021				2020				Prior				Term Loans Total				Revolving Loans				Grand Total
Agricultural
Pass	$	523			$	2,000			$	3,723			$	3,047			$	1,696			$	22,303			$	33,292			$	8,440			$	41,732
Special mention		-				-				-				-				-				218				218				-				218
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	523			$	2,000			$	3,723			$	3,047			$	1,696			$	22,521			$	33,510			$	8,440			$	41,950
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Commercial and Industrial
Pass	$	4,323			$	27,221			$	42,317			$	20,127			$	9,891			$	18,852			$	122,731			$	107,930			$	230,661
Special mention		-				-				111				24				33				121				289				109				398
Substandard		-				-				-				-				-				146				146				17				163
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	4,323			$	27,221			$	42,428			$	20,151			$	9,924			$	19,119			$	123,166			$	108,056			$	231,222
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	1			$	1			$	-			$	1

Commercial Real Estate
Pass	$	10,189			$	151,579			$	127,964			$	105,078			$	70,301			$	176,176			$	641,287			$	153,046			$	794,333
Special mention		-				-				-				-				-				372				372				-				372
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	10,189			$	151,579			$	127,964			$	105,078			$	70,301			$	176,548			$	641,659			$	153,046			$	794,705
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Commercial Loans	$	15,035			$	180,800			$	174,115			$	128,276			$	81,921			$	218,188			$	798,335			$	269,542			$	1,067,877


Retail:	2024				2023				2022				2021				2020				Prior				Term Loans Total				Revolving Loans				Grand Total
Consumer
Performing	$	2,210			$	9,011			$	11,277			$	6,201			$	2,487			$	2,100			$	33,286			$	782			$	34,068
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				42				157				1				-				-				200				-				200
Total	$	2,210			$	9,053			$	11,434			$	6,202			$	2,487			$	2,100			$	33,486			$	782			$	34,268
Current year-to-date gross write-offs (1)	$	-			$	1			$	33			$	1			$	-			$	1			$	36			$	-			$	36

Construction real estate
Performing	$	960			$	1,518			$	148			$	542			$	-			$	-			$	3,168			$	14,722			$	17,890
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	960			$	1,518			$	148			$	542			$	-			$	-			$	3,168			$	14,722			$	17,890
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Residential real estate
Performing	$	7,133			$	52,345			$	63,307			$	28,034			$	15,992			$	50,977			$	217,788			$	49,220			$	267,008
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				136				499				697				-				111				1,443				72				1,515
Total	$	7,133			$	52,481			$	63,806			$	28,731			$	15,992			$	51,088			$	219,231			$	49,292			$	268,523
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Loans to Other Financial Institutions
Performing	$	30,032			$	-			$	-			$	-			$	-			$	-			$	30,032			$	-			$	30,032
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	30,032			$	-			$	-			$	-			$	-			$	-			$	30,032			$	-			$	30,032
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Retail Loans	$	40,335			$	63,052			$	75,388			$	35,475			$	18,479			$	53,188			$	285,917			$	64,796			$	350,713

The following table reflects the amortized cost basis of loans as of December 31, 2023 based on year of origination (dollars in thousands):


Commercial:	2023				2022				2021				2020				2019				Prior				Term Loans Total				Revolving Loans				Grand Total
Agricultural
Pass	$	5,015			$	4,088			$	3,078			$	1,788			$	7,028			$	18,476			$	39,473			$	9,507			$	48,980
Special mention		-				-				-				-				176				54				230				-				230
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	5,015			$	4,088			$	3,078			$	1,788			$	7,204			$	18,530			$	39,703			$	9,507			$	49,210
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Commercial and Industrial
Pass	$	23,600			$	45,489			$	23,462			$	10,502			$	9,214			$	11,882			$	124,149			$	105,559			$	229,708
Special mention		-				-				28				35				73				64				200				3				203
Substandard		-				-				-				-				-				4				4				-				4
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	23,600			$	45,489			$	23,490			$	10,537			$	9,287			$	11,950			$	124,353			$	105,562			$	229,915
Current year-to-date gross write-offs	$	-			$	55			$	30			$	71			$	-			$	2			$	158			$	-			$	158

Commercial Real Estate
Pass	$	149,181			$	134,289			$	107,033			$	71,754			$	43,846			$	136,361			$	642,464			$	143,120			$	785,584
Special mention		-				-				-				-				-				1,337				1,337				-				1,337
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	149,181			$	134,289			$	107,033			$	71,754			$	43,846			$	137,698			$	643,801			$	143,120			$	786,921
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Commercial Loans	$	177,796			$	183,866			$	133,601			$	84,079			$	60,337			$	168,178			$	807,857			$	258,189			$	1,066,046


Retail:	2023				2022				2021				2020				2019				Prior				Term Loans Total				Revolving Loans				Grand Total
Consumer
Performing	$	9,775			$	13,876			$	6,771			$	2,849			$	1,260			$	1,202			$	35,733			$	808			$	36,541
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	9,775			$	13,876			$	6,771			$	2,849			$	1,260			$	1,202			$	35,733			$	808			$	36,541
Current year-to-date gross write-offs	$	8			$	24			$	11			$	28			$	-			$	1			$	72			$	-			$	72

Construction real estate
Performing	$	2,507			$	2,719			$	552			$	-			$	-			$	-			$	5,778			$	15,158			$	20,936
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	2,507			$	2,719			$	552			$	-			$	-			$	-			$	5,778			$	15,158			$	20,936
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Residential real estate
Performing	$	54,231			$	64,768			$	28,301			$	16,391			$	12,556			$	40,270			$	216,517			$	49,491			$	266,008
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				380				826				-				-				486				1,692				30				1,722
Total	$	54,231			$	65,148			$	29,127			$	16,391			$	12,556			$	40,756			$	218,209			$	49,521			$	267,730
Current year-to-date gross write-offs	$	-			$	26			$	-			$	-			$	-			$	1			$	27			$	-			$	27

Loans to Other Financial Institutions
Performing	$	19,400			$	-			$	-			$	-			$	-			$	-			$	19,400			$	-			$	19,400
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	19,400			$	-			$	-			$	-			$	-			$	-			$	19,400			$	-			$	19,400
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Retail Loans	$	85,913			$	81,743			$	36,450			$	19,240			$	13,816			$	41,958			$	279,120			$	65,487			$	344,607

(1) It is noted that write-offs in the table above do not include checking account write offs. Checking account write-offs during the first three months of 2024 were $87,000 or an annualized $348,000 compared to $480,000 during the full year 2023.

Summary of Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable

The following table presents the amortized cost basis of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during 2023. There have been no loans modified due to borrowers experiencing financial difficulty as of March 31, 2024.


For the period ended:	December 31, 2023

	Term Extension
					% of Total
					Class of
(Dollars in thousands)	Amortized				Financing
	Cost Basis				Receivable
Commercial and industrial	$	60				0	%
Residential real estate		129				0	%
Total	$	189

The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable during 2023. There have been no loans modified due to borrowers experiencing financial difficulty as of March 31, 2024.


For the period ended:	December 31, 2023
	Term Extension
Commercial and industrial	Termed out line of credit & termed out draw note
Residential real estate	Provided with new twelve month payment plan to catch up on past due balance.

The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty.


For the period ended:	March 31, 2024
(Dollars in thousands)	Term extension

Commercial and industrial		52
Residential real estate		126
Total	$	178


For the period ended:	December 31, 2023
(Dollars in thousands)	Term extension

Commercial and industrial		60
Residential real estate		129
Total	$	189

The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial difficulty by payment status and class of financing receivable.


For the period ended:	March 31, 2024
(Dollars in thousands)	Current				30-89 days				Greater than 90 days				Total

Commercial and industrial	$	52				-				-			$	52
Residential real estate		-				-				126				126
Total	$	52			$	-			$	126			$	178


For the period ended:	December 31, 2023
(Dollars in thousands)	Current				30-89 days				Greater than 90 days				Total

Commercial and industrial	$	60			$	-			$	-			$	60
Residential real estate		-				-				129				129
Total	$	60			$	-			$	129			$	189

Nonaccrual Loans by Loan Category

Nonaccrual loans by loan category were as follows:


As of March 31, 2024
(Dollars in thousands)	Nonaccrual loans with no ACL				Total nonaccrual loans				Interest income recognized during the period on nonaccrual loans
Consumer	$	43			$	200			$	5
Residential real estate		436				1,515				3
Total nonaccrual loans	$	479			$	1,715			$	8


As of March 31, 2023
(Dollars in thousands)	Nonaccrual loans with no ACL				Total nonaccrual loans				Interest income recognized during the period on nonaccrual loans
Residential real estate	$	1,432			$	1,596			$	-
Total nonaccrual loans	$	1,432			$	1,596			$	-


As of December 31, 2023
(Dollars in thousands)	Nonaccrual loans with no ACL				Total nonaccrual loans				Interest income recognized during the period on nonaccrual loans
Commercial and industrial	$	-			$	1			$	-
Residential real estate		707				1,722				16
Total nonaccrual loans	$	707			$	1,723			$	16

Aging Analysis of Loans by Loan Category

An aging analysis of loans by loan category follows:


									Loans																Loans
	Loans				Loans				Past Due																90 Days
	Past Due				Past Due				Greater																Past
(Dollars in thousands)	30 to 59				60 to 89				Than 90								Loans Not				Total				Due and
	Days (1)				Days (1)				Days (1)				Total (1)				Past Due				Loans				Accruing
March 31, 2024
Agricultural	$	-			$	-			$	-			$	-			$	41,950			$	41,950			$	-
Commercial and industrial		-				-				-				-				231,222				231,222				-
Consumer		31				94				4				129				34,139				34,268				-
Commercial real estate		173				-				-				173				794,532				794,705				-
Construction real estate		-				-				-				-				17,890				17,890				-
Residential real estate		873				770				126				1,769				266,754				268,523
Loans to Other Financial Institutions		-				-				-				-				30,032				30,032
	$	1,077			$	864			$	130			$	2,071			$	1,416,519			$	1,418,590			$	-


December 31, 2023
Agricultural	$	-			$	-			$	-			$	-			$	49,210			$	49,210			$	-
Commercial and industrial		-				-				1				1				229,914				229,915				-
Consumer		31				2				-				33				36,508				36,541				-
Commercial real estate		173				-				-				173				786,748				786,921				-
Construction real estate		-				-				-				-				20,936				20,936				-
Residential real estate		755				549				870				2,174				265,556				267,730				-
Loans to Other Financial Institutions		-				-				-				-				19,400				19,400
	$	959			$	551			$	871			$	2,381			$	1,408,272			$	1,410,653			$	-

(1) Includes nonaccrual loans.