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Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Loans by Type as Percentage of Portfolio

The Bank’s loan portfolio as of December 31 was as follows:


	December 31, 2024							December 31, 2023
(Dollars in thousands)	Balance			%				Balance			%
Agricultural	$	48,221			3.12	%		$	49,210			5.39	%
Commercial and Industrial		228,256			14.77	%			229,915			17.67	%
Commercial Real Estate		901,130			58.30	%			786,921			53.03	%
Consumer		29,412			1.90	%			36,541			3.35	%
Construction Real Estate		17,042			1.10	%			20,936			1.24	%
Residential Real Estate		281,701			18.23	%			267,730			19.32	%
Loans to Other Financial Institutions		39,878			2.58	%			19,400			0.00	%
Gross Loans	$	1,545,640						$	1,410,653

Allowance for credit losses		16,552			1.07	%			15,685			1.11	%

Net loans	$	1,529,088						$	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 was as follows:


						Commercial																				Loans to Other
(Dollars in thousands)						and								Commercial				Construction				Residential				Financial
		Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Institutions				Unallocated				Total
Allowance for Credit Losses Year Ended December 31, 2024
Beginning balance		$	94			$	2,216			$	823			$	8,820			$	58			$	3,644			$	30			$	-			$	15,685
Charge-offs			-				(7	)			(800	)			-				-				(30	)			-				-				(837	)
Recoveries			-				15				374				-				-				15				-				-				404
Provision			(4	)			36				336				640				1				261				30				-				1,300
Ending balance		$	90			$	2,260			$	733			$	9,460			$	59			$	3,890			$	60			$	-			$	16,552
Individually evaluated loan reserves		$	-			$	4			$	1			$	-			$	16			$	147			$	-			$	-			$	168
Collectively evaluated loan reserves		$	90			$	2,256			$	732			$	9,460			$	43			$	3,743			$	60			$	-			$	16,384
Loans
December 31, 2024
Individually evaluated loans		$	9			$	119			$	31			$	-			$	229			$	3,691			$	-							$	4,079
Collectively evaluated loans			48,212				228,137				29,381				901,130				16,813				278,010				39,878								1,541,561
Ending balance		$	48,221			$	228,256			$	29,412			$	901,130			$	17,042			$	281,701			$	39,878							$	1,545,640


						Commercial																				Loans to Other
(Dollars in thousands)						and								Commercial				Construction				Residential				Financial
		Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Institutions				Unallocated				Total
Allowance for Credit Losses Year Ended December 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			-				(158	)			(554	)			-				-				(27	)			-				-				(739	)
Recoveries			-				66				283				13				-				13				-				-				375
Provision			(64	)			(640	)			243				979				(25	)			742				30				-				1,265
Ending balance		$	94			$	2,216			$	823			$	8,820			$	58			$	3,644			$	30			$	-			$	15,685
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
Ending balance		$	49,210			$	229,915			$	36,541			$	786,921			$	20,936			$	267,730			$	19,400							$	1,410,653


						Commercial																				Loans to Other
(Dollars in thousands)						and								Commercial				Construction				Residential				Financial
		Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Institutions				Unallocated				Total
Allowance for Credit Losses Year Ended December 31, 2022
Beginning balance		$	448			$	1,454			$	290			$	3,705			$	110			$	671			$	-			$	1,010			$	7,688
Charge-offs			-				(177	)			(496	)			-				-				-				-				-				(673	)
Recoveries			-				143				206				3				-				2				-				-				354
Provision			(304	)			(59	)			310				1,114				(47	)			233				-				(997	)			250
Ending balance		$	144			$	1,361			$	310			$	4,822			$	63			$	906			$	-			$	13			$	7,619
Individually evaluated for impairment		$	2			$	14			$	1			$	5			$	-			$	131			$	-			$	-			$	153
Collectively evaluated for impairment		$	142			$	1,347			$	309			$	4,817			$	63			$	775			$	-			$	13			$	7,466
Loans
December 31, 2022
Individually evaluated for impairment		$	23			$	177			$	7			$	165			$	-			$	2,474			$	-							$	2,846
Collectively evaluated for impairment			64,136				206,074				39,793				622,131				14,736				225,792				-								1,172,662
Acquired with deteriorated credit quality			-				3,959				8				8,657				-				1,650				-								14,274
Ending balance		$	64,159			$	210,210			$	39,808			$	630,953			$	14,736			$	229,916			$	-							$	1,189,782

Schedule of Information Regarding Credit Exposure

The following table reflects the amortized cost basis of loans as of December 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	$	7,669			$	1,729			$	2,998			$	2,867			$	1,545			$	18,573			$	35,381			$	12,666			$	48,047
Special mention		-				-				-				-				-				174				174				-				174
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	7,669			$	1,729			$	2,998			$	2,867			$	1,545			$	18,747			$	35,555			$	12,666			$	48,221
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Commercial and Industrial
Pass	$	40,184			$	17,481			$	30,769			$	14,659			$	6,100			$	10,110			$	119,303			$	108,656			$	227,959
Special mention		-								84				14				24				174				296				-				296
Substandard		-				-				-				-				-				1				1				-				1
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	40,184			$	17,481			$	30,853			$	14,673			$	6,124			$	10,285			$	119,600			$	108,656			$	228,256
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	7			$	7			$	-			$	7

Commercial Real Estate
Pass	$	150,126			$	140,105			$	120,517			$	99,381			$	69,773			$	151,908			$	731,810			$	165,046			$	896,856
Special mention		-				-				-				-				-				4,274				4,274				-				4,274
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	150,126			$	140,105			$	120,517			$	99,381			$	69,773			$	156,182			$	736,084			$	165,046			$	901,130
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Commercial Loans	$	197,979			$	159,315			$	154,368			$	116,921			$	77,442			$	185,214			$	891,239			$	286,368			$	1,177,607


Retail:	2024				2023				2022				2021				2020				Prior				Term Loans Total				Revolving Loans				Grand Total
Consumer
Performing	$	6,489			$	6,636			$	8,427			$	4,240			$	1,632			$	1,283			$	28,707			$	697			$	29,404
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				7				1				-				-				-				8				-				8
Total	$	6,489			$	6,643			$	8,428			$	4,240			$	1,632			$	1,283			$	28,715			$	697			$	29,412
Current year-to-date gross write-offs (1)	$	-			$	69			$	111			$	11			$	-			$	2			$	193			$	-			$	193

Construction real estate
Performing	$	1,436			$	451			$	-			$	522			$	-			$	-			$	2,409			$	14,404			$	16,813
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				229				229
Total	$	1,436			$	451			$	-			$	522			$	-			$	-			$	2,409			$	14,633			$	17,042
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Residential real estate
Performing	$	40,095			$	43,531			$	54,379			$	25,350			$	13,717			$	45,051			$	222,123			$	56,111			$	278,234
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		63				292				1,864				736				278				183				3,416				51				3,467
Total	$	40,158			$	43,823			$	56,243			$	26,086			$	13,995			$	45,234			$	225,539			$	56,162			$	281,701
Current year-to-date gross write-offs	$	-			$	23			$	-			$	1			$	-			$	6			$	30			$	-			$	30

Loans to Other Financial Institutions
Performing	$	39,878			$	-			$	-			$	-			$	-			$	-			$	39,878			$	-			$	39,878
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	39,878			$	-			$	-			$	-			$	-			$	-			$	39,878			$	-			$	39,878
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Retail Loans	$	87,961			$	50,917			$	64,671			$	30,848			$	15,627			$	46,517			$	296,541			$	71,492			$	368,033

(1) It is noted that write-offs in the tables above do not include checking account write-offs. Checking account write-offs during the full year 2024 were $607,000 compared to $480,000 during the full year 2023.

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 (1)	$	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 tables above do not include checking account write-offs. Checking account write-offs during the full year 2024 were $607,000 compared to $480,000 during the full year 2023.

Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable

The following tables present 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 the full year 2024 and 2023.


For the period ended:	December 31, 2024

	Term Extension
					% of Total
					Class of
(Dollars in thousands)	Amortized				Financing
	Cost Basis				Receivable
Residential real estate	$	121				0	%
Total	$	121


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 the full year 2024 and 2023.


For the period ended:	December 31, 2024
	Term Extension
Residential real estate	Provided with new five year payment plan based on bankruptcy.


For the period ended:	December 31, 2023
	Term Extension
Commercial and industrial	Termed out line of credit and 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:	December 31, 2024
(Dollars in thousands)	Term extension

Residential real estate	$	121
Total	$	121


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:	December 31, 2024
(Dollars in thousands)	Current				30-89 days				Greater than 90 days				Total

Residential real estate	$	-			$	-			$	121			$	121
Total	$	-			$	-			$	121			$	121


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

Aging Analysis of Loans by Loan Category

An aging analysis of loans by loan category as of December 31 follows:


									Loans
	Loans				Loans				Past Due																Loans
	Past Due				Past Due				Greater																90 Days 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
December 31, 2024
Agricultural	$	-			$	-			$	-			$	-			$	48,221			$	48,221			$	-
Commercial and industrial		-				49				-				49				228,207				228,256				-
Consumer		52				87				7				146				29,266				29,412				-
Commercial real estate		23				-				-				23				901,107				901,130				-
Construction real estate		694				-				229				923				16,119				17,042				-
Residential real estate		4,866				765				1,850				7,481				274,220				281,701				-
Loans to other financial institutions		-				-				-				-				39,878				39,878				-
	$	5,635			$	901			$	2,086			$	8,622			$	1,537,018			$	1,545,640			$	-

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

Nonaccrual Loans by Loan Category

The amortized cost basis of nonaccrual loans by loan category as of December 31:


(Dollars in thousands)
	2024				2023				2022
Commercial and industrial	$	-			$	1			$	-
Consumer		8				-				-
Construction real estate		229				-				-
Residential real estate		3,467				1,722				1,263
Total nonaccrual loans	$	3,704			$	1,723			$	1,263

Nonaccrual loans with and without ACL as of December 31, 2024.


(Dollars in thousands)	Nonaccrual loans with no ACL				Interest income recognized during the period on nonaccrual loans
Consumer	$	-			$	1
Construction real estate		-				9
Residential real estate		806				71
Total nonaccrual loans	$	806			$	81

Nonaccrual loans with and without ACL as of December 31, 2023.


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

Schedule of Collateral Dependent Loans and Related Allowance For Credit Losses Allocated to Loans

The following tables present the collateral dependent loans and the related ACL allocated by segment of loans:


	December 31, 2024												December 31, 2023
(Dollars in thousands)	Real Estate				Total				ACL Allocation				Real Estate				Total				ACL Allocation
Residential Real Estate	$	1,887			$	1,887			$	108			$	387			$	387			$	-
Total	$	1,887			$	1,887			$	108			$	387			$	387			$	-