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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Outstanding loans Outstanding loans are summarized by class as follows:
Loan Type (Dollars in thousands)September 30, 2023December 31, 2022
Commercial:  
Commercial and industrial$106,061 $141,197 
Agricultural production25,190 37,007 
Total commercial131,251 178,204 
Real estate:  
Construction & other land loans81,264 109,175 
Commercial real estate - owner occupied197,228 194,663 
Commercial real estate - non-owner occupied525,835 464,809 
Farmland123,467 119,648 
Multi-family residential44,794 24,586 
1-4 family - close-ended95,573 93,510 
1-4 family - revolving28,251 30,071 
Total real estate1,096,412 1,036,462 
Consumer46,204 40,252 
Total gross loans1,273,867 1,254,918 
Net deferred origination fees 1,544 1,386 
Loans, net of deferred origination fees1,275,411 1,256,304 
Allowance for credit losses(15,534)(10,848)
Total loans, net$1,259,877 $1,245,456 
Impaired loans There was no foregone interest on nonaccrual loans for the three and nine month periods ended September 30, 2023. Foregone interest on nonaccrual loans totaled $75,000 and $132,000 for the three and nine month periods ended September 30, 2022, respectively.
Allowance for credit losses
The following table shows the summary of activities for the allowance for credit losses as of and for the nine months ended September 30, 2023 and 2022 by portfolio segment (in thousands):
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerUnallocatedTotal
Allowance for credit losses:     
Beginning balance, January 1, 2023 prior to adoption of ASU 2016-13 (CECL)$1,814 $7,803 $607 $284 $340 $10,848 
Impact of adoption of ASU 2016-13454 1,693 1,614 489 (340)3,910 
(Credit) provision for credit losses (1)
(630)1,383 184 30 — 967 
Charge-offs(558)— — (53)— (611)
Recoveries360 — 15 45 — 420 
Ending balance, September 30, 2023$1,440 $10,879 $2,420 $795 $— $15,534 
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $476 includes a $(495) credit for held-to-maturity securities and a $4 provision for unfunded loan commitments.
CommercialReal EstateConsumerUnallocatedTotal
Allowance for credit losses:     
Beginning balance, January 1, 2022$2,011 $6,741 $568 $280 $9,600 
(Credit) provision for credit losses (1)
(269)671 248 (150)500 
Charge-offs(18)— (120)— (138)
Recoveries367 — 37 — 404 
Ending balance, September 30, 2022$2,091 $7,412 $733 $130 $10,366 
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $495 includes a $5 provision for unfunded loan commitments.

During the three and nine month periods ended September 30, 2023, the provision for credit losses was primarily driven by weakening economic scenario forecasts in commercial real estate and multi-family and increases in commercial real estate and multi-family loan balances, partially offset by lower loan balances in the commercial loan segment. Management believes that the allowance for credit losses at September 30, 2023 appropriately reflected expected credit losses in the loan portfolio at that date.
Loan portfolio by internal risk rating
The following table shows the loan portfolio by class, net of deferred fees, allocated by management’s internal risk ratings for the period indicated (in thousands):
Term Loans Amortized Cost Basis by Origination Year As of September 30, 2023
20232022202120202019PriorRevolving LoansRevolving Converted to TermTotal
Commercial and industrial
Pass/Watch$16,221 $22,452 $21,652 $4,966 $1,852 $8,127 $25,568 $215 $101,053 
Special mention— 294 151 188 703 276 3,500 — 5,112 
Substandard— — — 192 — 87 — — 279 
Total$16,221 $22,746 $21,803 $5,346 $2,555 $8,490 $29,068 $215 $106,444 
Current period gross write-offs$241 $— $323 $— $— $— $— $— $564 
Agricultural production
Pass/Watch$144 $242 $15 $— $251 $162 $15,105 $999 $16,918 
Special mention— — — — — — 6,940 — 6,940 
Substandard— 1,366 — — — — — — 1,366 
Total$144 $1,608 $15 $— $251 $162 $22,045 $999 $25,224 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Construction & other land loans
Pass/Watch$1,734 $18,366 $21,988 $10,801 $1,677 $2,795 $5,263 $— $62,624 
Special mention— — — — — — — — — 
Substandard— 2,452 — — 15,928 — — — 18,380 
Total$1,734 $20,818 $21,988 $10,801 $17,605 $2,795 $5,263 $— $81,004 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied
Pass/Watch$13,216 $23,104 $20,962 $28,148 $22,170 $82,973 $2,887 $— $193,460 
Special mention— — — — — 1,420 247 — 1,667 
Substandard— — — — — 2,126 — — 2,126 
Total$13,216 $23,104 $20,962 $28,148 $22,170 $86,519 $3,134 $— $197,253 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - non-owner occupied
Pass/Watch$71,209 $114,906 $77,927 $40,903 $23,257 $181,300 $12,308 $— $521,810 
Special mention— 600 — — — 434 — — 1,034 
Substandard— — — — — 2,362 — — 2,362 
Total$71,209 $115,506 $77,927 $40,903 $23,257 $184,096 $12,308 $— $525,206 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Farmland
Pass/Watch$5,597 $23,972 $10,960 $29,810 $11,221 $23,816 $13,685 $1,955 $121,016 
Special mention— — — 2,213 — — — — 2,213 
Substandard— — — — — 196 — — 196 
Total$5,597 $23,972 $10,960 $32,023 $11,221 $24,012 $13,685 $1,955 $123,425 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Multi-family residential
Pass/Watch$2,992 $1,858 $20,358 $2,381 $4,561 $12,134 $531 $— $44,815 
Special mention— — — — — — — — — 
Substandard— — — — — — — — 
Total$2,992 $1,858 $20,358 $2,381 $4,561 $12,134 $531 $— $44,815 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
1-4 family - close-ended
Pass/Watch$— $64,585 $8,052 $2,305 $2,122 $18,624 $— $— $95,688 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$— $64,585 $8,052 $2,305 $2,122 $18,624 $— $— $95,688 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
1-4 family - revolving
Pass/Watch$— $— $— $— $— $22,376 $6,103 $28,479 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Total$— $— $— $— $— $— $22,376 $6,103 $28,479 
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Consumer
Pass/Watch$23,021 $9,655 $7,254 $2,450 $2,168 $2,650 $640 $4 $47,842 
Special mention— — — — — — — — — 
Substandard— — 31 — — — — — 31 
Total$23,021 $9,655 $7,285 $2,450 $2,168 $2,650 $640 $4 $47,873 
Current period gross write-offs$20 $— $— $— $27 $— $— $— $47 
Total loans outstanding (risk rating):
Pass/Watch$134,134 $279,140 $189,168 $121,764 $69,279 $332,581 $98,363 $9,276 $1,233,705 
Special mention— 894 151 2,401 703 2,130 10,687 — 16,966 
Substandard— 3,818 31 192 15,928 4,771 — — 24,740 
Grand Total$134,134 $283,852 $189,350 $124,357 $85,910 $339,482 $109,050 $9,276 $1,275,411 
Current period total gross write-offs$261 $— $323 $— $27 $— $— $— $611 

The following table shows the loan portfolio by class, net of deferred fees, allocated by management’s internal risk ratings at December 31, 2022 (in thousands):
PassSpecial MentionSubstandardDoubtfulTotal
Commercial:
Commercial and industrial$131,300 $8,707 $1,655 $— $141,662 
Agricultural production24,926 6,713 5,399 — 37,038 
Real Estate:
Construction & other land loans93,817 — 15,024 — 108,841 
Commercial real estate - owner occupied189,344 3,283 2,169 — 194,796 
Commercial real estate - non-owner occupied458,746 3,440 2,412 — 464,598 
Farmland109,898 8,879 824 — 119,601 
Multi-family residential24,636 — — — 24,636 
1-4 family - close-ended93,644 — — — 93,644 
1-4 family - revolving30,031 — 266 — 30,297 
Consumer:41,155 2 34 — 41,191 
Total$1,197,497 $31,024 $27,783 $— $1,256,304 
Loan portfolio by time past due The following table shows an aging analysis of the loan portfolio by class at September 30, 2023 (in thousands):
 30-59 Days
Past Due		60-89
Days Past
Due
Greater
Than
 89 Days
Past Due
Total Past
Due		CurrentTotal
Loans		Loans Past Due > 89 Days, Still AccruingNon-accrual
Commercial:        
Commercial and industrial$37 $— $— $37 $106,024 $106,061 $— $— 
Agricultural production— — — — 25,190 25,190 — — 
Real estate:—    
Construction & other land loans— — — — 81,264 81,264 — — 
Commercial real estate - owner occupied— — — — 197,228 197,228 — — 
Commercial real estate - non-owner occupied— — — — 525,835 525,835 — — 
Farmland— — — — 123,467 123,467 — — 
Multi-family residential— — — — 44,794 44,794 — — 
1-4 family - close-ended— — — — 95,573 95,573 — — 
1-4 family - revolving— — — — 28,251 28,251 — — 
Consumer199 — — 199 46,005 46,204 — — 
Deferred fees— — — — $1,544 1,544 — — 
Total$236 $— $— $236 $1,275,175 $1,275,411 $— $— 

The following table shows an aging analysis of the loan portfolio by class at December 31, 2022 (in thousands):
 30-59 Days
Past Due		60-89
Days Past
Due		Greater
Than
 89 Days
Past Due		Total Past
Due		CurrentTotal
Loans		Loans Past Due > 89 Days, Still AccruingNon-
accrual
Commercial:        
Commercial and industrial$440 $— $— $440 $140,757 $141,197 $— $— 
Agricultural production— — — — 37,007 37,007 — — 
Real estate:—       
Construction & other land loans— — — — 109,175 109,175 — — 
Commercial real estate - owner occupied250 — — 250 194,413 194,663 — — 
Commercial real estate - non-owner occupied4,507 — — 4,507 460,302 464,809 — — 
Farmland— — — — 119,648 119,648 — — 
Multi-family residential— — — — 24,586 24,586 — — 
1-4 family - close-ended— — — — 93,510 93,510 — — 
1-4 family - revolving465 — — 465 29,606 30,071 — — 
Consumer233 — — 233 40,019 40,252 — — 
Deferred fees— — — — 1,386 1,386 — — 
Total$5,895 $— $— $5,895 $1,250,409 $1,256,304 $— $—