Loans

3 Months Ended

Mar. 31, 2024

Note 5 – Loans

The Company grants commercial, industrial, agricultural, residential, and consumer loans primarily to customers throughout north central, central and south central Pennsylvania, southern New York and Wilmington and Dover, Delaware. The recently completed HVBC acquisition has expanded our lending market further into southeast Pennsylvania, including Montgomery, Bucks and Philadelphia Counties as well as Burlington County, New Jersey. Although the Company had a diversified loan portfolio at March 31, 2024 and December 31, 2023, a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic conditions within these regions. The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for credit losses - loans as of March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024		December 31, 2023
Real estate loans:
Residential	$	357,779	$	359,990
Commercial		1,115,900		1,092,887
Agricultural		318,413		314,802
Construction		184,506		195,826
Consumer		53,101		61,316
Other commercial loans		129,438		136,168
Other agricultural loans		24,345		30,673
State and political subdivision loans		56,177		57,174
Total		2,239,659		2,248,836
Allowance for credit losses - loans		21,598		21,153
Net loans	$	2,218,061	$	2,227,683

Allowance for Credit Losses, effective January 1, 2023

As discussed in Note 1 “Basis of Presentation”, the Company adopted CECL effective January 1, 2023. CECL requires estimated credit losses on loans to be determined based on an expected life of loan model, as compared to an incurred loss model (in effect for periods prior to 2023). Accordingly, allowance for losses disclosures subsequent to January 1, 2023 are not always comparable to prior dates. In addition, certain new disclosures required under CECL are not applicable to prior periods. See Note 1, “Basis of Presentation”, for a summary of the impact of adopting CECL on January 1, 2023.

Under CECL, loans evaluated for impairment consist of non-accrual commercial loans and recently modified loans that were experiencing financial difficulty at the time of the modification.

The allowance for credit losses related to loans consists of loans evaluated collectively and individually for expected credit losses. It represents an estimate of credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. The allowance for credit losses for off-balance sheet credit exposures includes estimated losses on unfunded loan commitments, letters of credit and other off-balance sheet credit exposures. The total allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The following table presents the components of the allowance for credit losses as of March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024		December 31, 2023
Allowance for Credit Losses - Loans	$	21,598	$	21,153
Allowance for Credit Losses - Off-Balance Sheet credit Exposure		938		1,265
Total allowance for credit losses	$	22,536	$	22,418

The following table presents the activity in the allowance for credit losses for the three months ended March 31, 2024 and 2023 (in thousands):

	Allowance for Credit Losses - Loans			Allowance for Credit Losses - Off-Balance Sheet credit Exposure			Total
Balance at December 31, 2023	$	21,153		$	1,265		$	22,418
Loans charge-off		(674	)		-			(674	)
Recoveries of loans previously charged-off		7			-			7
Net loans charged-off		(667	)		-			(667	)
Provision for credit losses		1,112			(327	)		785
Balance at March 31, 2024	$	21,598		$	938		$	22,536

	Allowance for Credit Losses - Loans			Allowance for Credit Losses - Off-Balance Sheet credit Exposure		Total
Balance at December 31, 2022	$	18,552		$	165	$	18,717
Impact of adopting CECL		(3,300	)		1,064		(2,236	)
Loans charge-off		(7	)		-		(7	)
Recoveries of loans previously charged-off		5			-		5
Net loans charged-off		(2	)		-		(2	)
Provision for credit losses		-			-		-
Balance at March 31, 2023	$	15,250		$	1,229	$	16,479

The following tables presents the activity in the allowance for credit losses – loans, by portfolio segment, for the three months ended March 31, 2024 and 2023 (in thousands):

	For the three months ended March 31, 2024
	Balance at December 31, 2023		Charge-offs			Recoveries		Provision			Balance at March 31, 2024
Real estate loans:
Residential	$	2,354	$	-		$	-	$	(7	)	$	2,347
Commercial		9,178		-			-		563			9,741
Agricultural		3,264		-			-		408			3,672
Construction		1,950		-			-		(355	)		1,595
Consumer		1,496		(30	)		5		(205	)		1,266
Other commercial loans		2,229		(644	)		2		1,093			2,680
Other agricultural loans		270		-			-		(96	)		174
State and political subdivision loans		45		-			-		20			65
Unallocated		367		-			-		(309	)		58
Total	$	21,153	$	(674	)	$	7	$	1,112		$	21,598

	For the three months ended March 31, 2023
	Balance at December 31, 2022		Impact of adopting CECL			Charge-offs			Recoveries		Provision			Balance at March 31, 2023
Real estate loans:
Residential	$	1,056	$	79		$	-		$	-	$	60		$	1,195
Commercial		10,120		(3,070	)		-			-		(303	)		6,747
Agricultural		4,589		(1,145	)		-			-		(35	)		3,409
Construction		801		(103	)		-			-		153			851
Consumer		135		1,040			(7	)		4		48			1,220
Other commercial loans		1,040		(328	)		-			1		(1	)		712
Other agricultural loans		489		(219	)		-			-		(20	)		250
State and political subdivision loans		322		(280	)		-			-		-			42
Unallocated		-		726			-			-		98			824
Total	$	18,552	$	(3,300	)	$	(7	)	$	5	$	-		$	15,250

The following table presents the allowance for credit losses – loans and amortized cost basis of loans under CECL methodology as of March 31, 2024 and December 31, 2023:

	Allowance for Credit Losses - Loans						Loans
March 31, 2024	Collectively evaluated		Individually evaluated		Total Allowance for Credit Losses - Loans		Collectively evaluated		Individually evaluated		Total Loans
Real estate loans:
Residential	$	2,291	$	56	$	2,347	$	356,185	$	1,594	$	357,779
Commercial		9,600		141		9,741		1,113,415		2,485		1,115,900
Agricultural		3,655		17		3,672		315,805		2,608		318,413
Construction		1,595		-		1,595		180,223		4,283		184,506
Consumer		273		993		1,266		52,027		1,074		53,101
Other commercial loans		1,900		780		2,680		128,410		1,028		129,438
Other agricultural loans		174		-		174		23,915		430		24,345
State and political subdivision loans		65		-		65		56,177		-		56,177
Unallocated		58		-		58		-		-		-
Total	$	19,611	$	1,987	$	21,598	$	2,226,157	$	13,502	$	2,239,659

	Allowance for Credit Losses - Loans						Loans
December 31, 2023	Collectively evaluated		Individually evaluated		Total Allowance for Credit Losses - Loans		Collectively evaluated		Individually evaluated		Total Loans
Real estate loans:
Residential	$	2,285	$	69	$	2,354	$	358,358	$	1,632	$	359,990
Commercial		9,033		145		9,178		1,090,217		2,670		1,092,887
Agricultural		3,247		17		3,264		311,500		3,302		314,802
Construction		1,664		286		1,950		193,469		2,357		195,826
Consumer		557		939		1,496		60,377		939		61,316
Other commercial loans		1,713		516		2,229		134,472		1,696		136,168
Other agricultural loans		270		-		270		30,388		285		30,673
State and political subdivision loans		45		-		45		57,174		-		57,174
Unallocated		367		-		367		-		-		-
Total	$	19,181	$	1,972	$	21,153	$	2,235,955	$	12,881	$	2,248,836

Non-performing Loans

Non-performing loans include those loans that are considered nonaccrual, described in more detail below, and all loans past due 90 or more days. Loans are considered for non-accrual status upon reaching 90 days delinquency, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans, or if full payment of principal and interest is not expected. Additionally, if management is made aware of other information including bankruptcy, repossession, death, or legal proceedings, the loan may be placed on non-accrual status. If a loan is 90 days or more past due and is well secured and in the process of collection, it may still be considered accruing.

The following table reflects the non-performing loan receivables, as well as those on non-accrual status as of March 31, 2024 and December 31, 2023, respectively. The balances are presented by class of loan receivable (in thousands):

	March 31, 2024								December 31, 2023
	Nonaccrual With a related allowance		Nonaccrual Without a related allowance		90 days or greater past due and accruing		Total non- performing loans		Nonaccrual With a related allowance		Nonaccrual Without a related allowance		90 days or greater past due and accruing		Total non- performing loans
Real estate loans:
Mortgages	$	311	$	2,580	$	565	$	3,456	$	315	$	2,646	$	-	$	2,961
Home Equity		-		119		-		119		-		121		18		139
Commercial		1,265		1,220		243		2,728		256		879		404		1,539
Agricultural		181		2,427		-		2,608		181		2,489		75		2,745
Construction		-		4,283		-		4,283		2,357		-		-		2,357
Consumer		849		-		12		861		701		-		13		714
Other commercial loans		1,008		20		-		1,028		588		1,162		6		1,756
Other agricultural loans		-		430		-		430		-		492		-		492
State and political subdivision		-		-		-		-		-		-		-		-
	$	3,614	$	11,079	$	820	$	15,513	$	4,398	$	7,789	$	516	$	12,703

As of March 31, 2024, there were $11.1 million of non-accrual loans that did not have a related allowance for credit losses. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to the realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

The following table presents, by class of loans and leases, the amortized cost basis of collateral-dependent nonaccrual loans and leases and type of collateral as of March 31, 2024 and December 31, 2023 (in thousands):

March 31, 2024	Real Estate		Business Assets		None		Total
Real estate loans:
Mortgages	$	2,891	$	-	$	-	$	2,891
Home Equity		119		-		-		119
Commercial		2,485		-		-		2,485
Agricultural		2,608		-		-		2,608
Construction		4,283		-		-		4,283
Consumer		-		-		849		849
Other commercial loans		-		1,028		-		1,028
Other agricultural loans		-		430		-		430
	$	12,386	$	1,458	$	849	$	14,693


December 31, 2023	Real Estate		Business Assets		None		Total
Real estate loans:
Mortgages	$	2,961	$	-	$	-	$	2,961
Home Equity		121		-		-		121
Commercial		1,135		-		-		1,135
Agricultural		2,670		-		-		2,670
Construction		2,357		-		-		2,357
Consumer		-		-		701		701
Other commercial loans		-		1,750		-		1,750
Other agricultural loans		-		492		-		492
	$	9,244	$	2,242	$	701	$	12,187

Credit Quality Information

For commercial real estate, agricultural real estate, construction, other commercial, other agricultural, and state and political subdivision loans, management uses a internal risk rating system to monitor and assess credit quality. During the third quarter of 2023, this rating system was expanded from a nine grade rating system to a ten grade rating system. The first six categories under the revised system are considered not criticized and are aggregated as “Pass” rated. Under the prior system, the first five categories were considered not criticized and aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The definitions of each rating are defined below:

•

Pass (Grades 1-6) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

•

Special Mention (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

•

Substandard (Grade 8) – This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and be characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

•

Doubtful (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

•

Loss (Grade 10) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay the loan as agreed, the Company’s loan rating process includes several layers of internal and external oversight. The Company’s loan officers are responsible for the timely and accurate risk rating of the loans in each of their portfolios at origination and on an ongoing basis under the supervision of management. All commercial, agricultural and state and political relationships over $500,000 are reviewed annually to ensure the appropriateness of the loan grade. In addition, the Company engages an external consultant on at least an annual basis to: 1) review a minimum of 50% of the dollar volume of the commercial loan portfolio on an annual basis, 2) a large sample of relationships in aggregate over $1,000,000, 3) selected loan relationships over $750,000 which are over 30 days past due, or classified Special Mention, Substandard, Doubtful, or Loss, and 4) such other loans which management or the consultant deems appropriate.

The following tables represent credit exposures by internally assigned grades, by origination year, as of March 31, 2024 and December 31, 2023 (in thousands):

													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	11,842	$	91,283	$	347,120	$	231,311	$	121,301	$	253,615	$	27,832	$	1,873	$	1,086,177
Special Mention		-		572		7,695		226		1,543		14,864		836		59		25,795
Substandard		-		-		1,544		6		-		1,626		334		418		3,928
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	11,842	$	91,855	$	356,359	$	231,543	$	122,844	$	270,105	$	29,002	$	2,350	$	1,115,900
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Agricultural real estate
Risk Rating
Pass	$	6,028	$	25,309	$	50,854	$	28,383	$	31,267	$	140,902	$	10,703	$	460	$	293,906
Special Mention		-		318		8,973		1,485		-		4,798		3,558		-		19,132
Substandard		-		-		-		-		-		5,077		75		223		5,375
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	6,028	$	25,627	$	59,827	$	29,868	$	31,267	$	150,777	$	14,336	$	683	$	318,413
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk Rating
Pass	$	7,011	$	59,252	$	88,283	$	13,312	$	1,937	$	-	$	884	$	122	$	170,801
Special Mention		-		-		5,502		3,920		-		-		-		-		9,422
Substandard		-		-		-		4,283		-		-		-		-		4,283
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	7,011	$	59,252	$	93,785	$	21,515	$	1,937	$	-	$	884	$	122	$	184,506
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other commercial loans
Risk Rating
Pass	$	7,232	$	27,033	$	9,642	$	8,758	$	4,353	$	7,523	$	55,136	$	88	$	119,765
Special Mention		-		260		235		1,464		3		784		1,520		36		4,302
Substandard		-		1,851		506		-		285		778		139		1,663		5,222
Doubtful		-		51		-		-		-		-		78		20		149
Total	$	7,232	$	29,195	$	10,383	$	10,222	$	4,641	$	9,085	$	56,873	$	1,807	$	129,438
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	644	$	-	$	644

Other agricultural loans
Risk Rating
Pass	$	310	$	3,507	$	1,363	$	5,854	$	944	$	582	$	10,716	$	-	$	23,276
Special Mention		31		-		444		16		40		-		33		29		593
Substandard		-		-		-		191		-		215		44		26		476
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	341	$	3,507	$	1,807	$	6,061	$	984	$	797	$	10,793	$	55	$	24,345
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

State and political subdivision loans
Risk Rating
Pass	$	-	$	1,572	$	14,142	$	10,741	$	5,015	$	24,702	$	5	$	-	$	56,177
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	-	$	1,572	$	14,142	$	10,741	$	5,015	$	24,702	$	5	$	-	$	56,177
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	32,423	$	207,956	$	511,404	$	298,359	$	164,817	$	427,324	$	105,276	$	2,543	$	1,750,102
Special Mention		31		1,150		22,849		7,111		1,586		20,446		5,947		124		59,244
Substandard		-		1,851		2,050		4,480		285		7,696		592		2,330		19,284
Doubtful		-		51		-		-		-		-		78		20		149
Total	$	32,454	$	211,008	$	536,303	$	309,950	$	166,688	$	455,466	$	111,893	$	5,017	$	1,828,779

													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
December 31, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	90,068	$	333,710	$	224,873	$	122,560	$	81,557	$	180,799	$	28,360	$	1,140	$	1,063,067
Special Mention		672		7,963		227		1,552		7,442		8,159		96		60		26,171
Substandard		-		1,302		6		-		158		1,444		317		422		3,649
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	90,740	$	342,975	$	225,106	$	124,112	$	89,157	$	190,402	$	28,773	$	1,622	$	1,092,887
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Agricultural real estate
Risk Rating
Pass	$	22,632	$	47,479	$	28,990	$	32,058	$	25,406	$	118,700	$	10,495	$	460	$	286,220
Special Mention		574		9,165		1,499		-		962		7,038		3,535		-		22,773
Substandard		-		-		-		-		102		5,394		75		238		5,809
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	23,206	$	56,644	$	30,489	$	32,058	$	26,470	$	131,132	$	14,105	$	698	$	314,802
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk Rating
Pass	$	54,973	$	102,562	$	22,508	$	-	$	-	$	-	$	839	$	1,166	$	182,048
Special Mention		1,574		5,432		4,415		-		-		-		-		-		11,421
Substandard		-		-		2,357		-		-		-		-		-		2,357
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	56,547	$	107,994	$	29,280	$	-	$	-	$	-	$	839	$	1,166	$	195,826
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other commercial loans
Risk Rating
Pass	$	31,493	$	11,407	$	9,016	$	4,793	$	4,758	$	3,530	$	63,285	$	93	$	128,375
Special Mention		51		52		1,510		184		223		629		1,652		36		4,337
Substandard		52		97		-		-		149		967		502		1,667		3,434
Doubtful		-		-		-		-		-		-		-		22		22
Total	$	31,596	$	11,556	$	10,526	$	4,977	$	5,130	$	5,126	$	65,439	$	1,818	$	136,168
Current period gross charge-offs	$	200	$	-	$	-	$	763	$	-	$	-	$	-	$	-	$	963

Other agricultural loans
Risk Rating
Pass	$	3,902	$	1,520	$	6,448	$	1,046	$	532	$	305	$	15,331	$	-	$	29,084
Special Mention		-		473		16		42		-		-		488		29		1,048
Substandard		-		-		207		-		4		255		44		31		541
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	3,902	$	1,993	$	6,671	$	1,088	$	536	$	560	$	15,863	$	60	$	30,673
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

State and political subdivision loans
Risk Rating
Pass	$	1,623	$	14,171	$	10,841	$	5,235	$	-	$	25,294	$	10	$	-	$	57,174
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,623	$	14,171	$	10,841	$	5,235	$	-	$	25,294	$	10	$	-	$	57,174
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	204,691	$	510,849	$	302,676	$	165,692	$	112,253	$	328,628	$	118,320	$	2,859	$	1,745,968
Special Mention		2,871		23,085		7,667		1,778		8,627		15,826		5,771		125		65,750
Substandard		52		1,399		2,570		-		413		8,060		938		2,358		15,790
Doubtful		-		-		-		-		-		-		-		22		22
Total	$	207,614	$	535,333	$	312,913	$	167,470	$	121,293	$	352,514	$	125,029	$	5,364	$	1,827,530

For residential real estate mortgage loans, home equity loans, and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail above, and all loans past due 90 or more days and still accruing. The following tables presents the recorded investment in those loan classes based on payment activity, by origination year, as of March 31, 2024 and December 31, 2023 (in thousands):

													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	2,298	$	19,300	$	92,970	$	47,003	$	29,594	$	113,968	$	-	$	-	$	305,133
Nonperforming		-		566		392		752		388		1,358		-		-		3,456
Total	$	2,298	$	19,866	$	93,362	$	47,755	$	29,982	$	115,326	$	-	$	-	$	308,589
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Home equity
Payment Performance
Performing	$	430	$	3,887	$	2,828	$	1,793	$	1,851	$	9,674	$	28,245	$	363	$	49,071
Nonperforming		-		-		-		-		-		53		66		-		119
Total	$	430	$	3,887	$	2,828	$	1,793	$	1,851	$	9,727	$	28,311	$	363	$	49,190
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer
Payment Performance
Performing	$	1,051	$	1,592	$	855	$	493	$	407	$	2,986	$	44,853	$	3	$	52,240
Nonperforming		-		-		10		-		20		831		-		-		861
Total	$	1,051	$	1,592	$	865	$	493	$	427	$	3,817	$	44,853	$	3	$	53,101
Current period gross charge-offs	$	-	$	-	$	18	$	-	$	-	$	-	$	12	$	-	$	30

Total
Payment Performance
Performing	$	3,779	$	24,779	$	96,653	$	49,289	$	31,852	$	126,628	$	73,098	$	366	$	406,444
Nonperforming		-		566		402		752		408		2,242		66		-		4,436
Total	$	3,779	$	25,345	$	97,055	$	50,041	$	32,260	$	128,870	$	73,164	$	366	$	410,880

													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
December 31, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	19,082	$	93,706	$	47,774	$	29,940	$	18,923	$	97,813	$	-	$	-	$	307,238
Nonperforming		-		399		766		396		-		1,400		-		-		2,961
Total	$	19,082	$	94,105	$	48,540	$	30,336	$	18,923	$	99,213	$	-	$	-	$	310,199
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	-	$	1

Home equity
Payment Performance
Performing	$	3,877	$	3,008	$	1,886	$	1,954	$	2,462	$	7,883	$	28,219	$	363	$	49,652
Nonperforming		-		-		-		-		-		72		67		-		139
Total	$	3,877	$	3,008	$	1,886	$	1,954	$	2,462	$	7,955	$	28,286	$	363	$	49,791
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer
Payment Performance
Performing	$	1,803	$	979	$	539	$	477	$	557	$	2,988	$	53,254	$	5	$	60,602
Nonperforming		-		21		-		-		-		693		-		-		714
Total	$	1,803	$	1,000	$	539	$	477	$	557	$	3,681	$	53,254	$	5	$	61,316
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	1	$	341	$	23	$	-	$	365

Total
Payment Performance
Performing	$	24,762	$	97,693	$	50,199	$	32,371	$	21,942	$	108,684	$	81,473	$	368	$	417,492
Nonperforming		-		420		766		396		-		2,165		67		-		3,814
Total	$	24,762	$	98,113	$	50,965	$	32,767	$	21,942	$	110,849	$	81,540	$	368	$	421,306

Aging Analysis of Past Due Loan Receivables

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table includes an aging analysis of the recorded investment of past due loan receivables as of March 31, 2024 and December 31, 2023 (in thousands):

March 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days Or Greater		Total Past Due		Current		Total Loans Receivables		90 Days or Greater and Accruing
Real estate loans:
Mortgages	$	1,412	$	576	$	2,345	$	4,333	$	304,256	$	308,589	$	565
Home Equity		180		-		119		299		48,891		49,190		-
Commercial		889		185		2,469		3,543		1,112,357		1,115,900		243
Agricultural		175		-		1,366		1,541		316,872		318,413		-
Construction		-		-		4,283		4,283		180,223		184,506		-
Consumer		209		125		861		1,195		51,906		53,101		12
Other commercial loans		2,344		879		888		4,111		125,327		129,438		-
Other agricultural loans		29		-		191		220		24,125		24,345		-
State and political subdivision loans		-		-		-		-		56,177		56,177		-
Total	$	5,238	$	1,765	$	12,522	$	19,525	$	2,220,134	$	2,239,659	$	820

Loans considered non-accrual	$	296	$	396	$	11,702	$	12,394	$	2,299	$	14,693
Loans still accruing		4,942		1,369		820		7,131		2,217,835		2,224,966
Total	$	5,238	$	1,765	$	12,522	$	19,525	$	2,220,134	$	2,239,659

December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		90 Days Or Greater		Total Past Due		Current		Total Loans Receivables		90 Days or Greater and Accruing
Real estate loans:
Mortgages	$	2,682	$	360	$	2,240	$	5,282	$	304,917	$	310,199	$	-
Home Equity		145		67		71		283		49,508		49,791		18
Commercial		1,151		245		1,380		2,776		1,090,111		1,092,887		404
Agricultural		72		-		1,440		1,512		313,290		314,802		75
Construction		4,407		388		2,357		7,152		188,674		195,826		-
Consumer		16		282		23		321		60,995		61,316		13
Other commercial loans		670		366		319		1,355		134,813		136,168		6
Other agricultural loans		108		362		-		470		30,203		30,673		-
State and political subdivision loans		-		-		-		-		57,174		57,174		-
Total	$	9,251	$	2,070	$	7,830	$	19,151	$	2,229,685	$	2,248,836	$	516
Loans considered non-accrual	$	199	$	666	$	7,314	$	8,179	$	4,008	$	12,187
Loans still accruing		9,052		1,404		516		10,972		2,225,677		2,236,649
Total	$	9,251	$	2,070	$	7,830	$	19,151	$	2,229,685	$	2,248,836

Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

There were no loan modifications made during the first three months for borrowers experiencing financial difficulty.

Foreclosed Assets Held For Sale

Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell, and are included in other assets on the Consolidated Balance Sheet. As of March 31, 2024 and December 31, 2023, included within other assets are $200,000 and $474,000, respectively, of foreclosed assets. As of March 31, 2024, there no consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of March 31, 2024, the Company had initiated formal foreclosure proceedings on $612,000 of residential mortgage loans, the collateral properties which have not yet been transferred into foreclosed assets.