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Loans Receivable and Allowance for Loan Losses | 3 Months Ended
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Mar. 31, 2023
Loans Receivable and Allowance for Loan Losses [Abstract] |
Loans Receivable and Allowance for Loan Losses | 8. Loans Receivable and Allowance for Loan Losses Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands):
| March 31, 2023 |  |  | December 31, 2022 |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 301,711 |  | 19.7 | % |  | $ | 298,813 |  | 20.3 | %
Commercial |  | 668,386 |  | 43.5 |  |  |  | 651,544 |  | 44.2 |
Agricultural |  | 68,381 |  | 4.5 |  |  |  | 68,915 |  | 4.7 |
Construction |  | 32,391 |  | 2.1 |  |  |  | 32,469 |  | 2.2 |
Commercial loans |  | 207,888 |  | 13.5 |  |  |  | 187,257 |  | 12.7 |
Other agricultural loans |  | 34,033 |  | 2.2 |  |  |  | 35,277 |  | 2.4 |
Consumer loans to individuals |  | 223,247 |  | 14.5 |  |  |  | 200,149 |  | 13.5 |
Total loans |  | 1,536,037 |  | 100.0 | % |  |  | 1,474,424 |  | 100.0 | %
Deferred fees, net |  | (394) |  |  |  |  |  | (479) |  |  |
Total loans receivable |  | 1,535,643 |  |  |  |  |  | 1,473,945 |  |  |
Allowance for credit losses |  | (19,445) |  |  |  |  |  | (16,999) |  |  |
Net loans receivable | $ | 1,516,198 |  |  |  |  | $ | 1,456,946 |  |  |
Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of March 31, 2023 and December 31, 2022, foreclosed real estate owned totaled $346,000 and $346,000, respectively. During the three months ended March 31, 2023, there were no additions or deletions to the foreclosed real estate category. As of March 31, 2023, the Company has initiated formal foreclosure proceedings on four properties classified as consumer residential mortgages with an aggregate carrying value of $244,000. The following table shows the amount of loans in each category that were individually and collectively evaluated for credit loss:
| Real Estate Loans |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  | Commercial |  |  | Other |  | Consumer |  |  |
| Residential |  | Commercial |  |  | Agricultural |  | Construction |  | Loans |  |  | Agricultural |  | Loans |  | Total
March 31, 2023 | (In thousands)
Individually evaluated | $ | — |  | $ | 290 |  | $ | — |  | $ | — |  | $ | 65 |  | $ | — |  | $ | — |  | $ | 355
Collectively evaluated |  | 301,711 |  |  | 668,096 |  |  | 68,381 |  |  | 32,391 |  |  | 207,823 |  |  | 34,033 |  |  | 223,247 |  |  | 1,535,682
Total Loans | $ | 301,711 |  | $ | 668,386 |  | $ | 68,381 |  | $ | 32,391 |  | $ | 207,888 |  | $ | 34,033 |  | $ | 223,247 |  | $ | 1,536,037
The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated:
| Real Estate Loans |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  | Commercial |  |  | Other |  | Consumer |  |  |
| Residential |  | Commercial |  |  | Agricultural |  | Construction |  | Loans |  |  | Agricultural |  | Loans |  | Total
| (In thousands)
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | - |  | $ | 402 |  | $ | — |  | $ | - |  | $ | 61 |  | $ | — |  | $ | - |  | $ | 463
Loans acquired with deteriorated credit quality |  | 567 |  |  | 2,049 |  |  | 2,034 |  |  | - |  |  | 1,640 |  |  | — |  |  | - |  |  | 6,290
Collectively evaluated for impairment |  | 298,246 |  |  | 649,093 |  |  | 66,881 |  |  | 32,469 |  |  | 185,556 |  |  | 35,277 |  |  | 200,149 |  |  | 1,467,671
Total Loans | $ | 298,813 |  | $ | 651,544 |  | $ | 68,915 |  | $ | 32,469 |  | $ | 187,257 |  | $ | 35,277 |  | $ | 200,149 |  | $ | 1,474,424
The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable.
|  |  |  | Unpaid |  |  |
| Recorded |  | Principal |  | Associated
| Investment |  | Balance |  | Allowance
December 31, 2022 |  |  |  |  | (in thousands) |  |
With no related allowance recorded: |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |
Commercial | $ | 402 |  | $ | 402 |  | $ | —
Commercial Loans |  | 11 |  |  | 11 |  |  | —
Subtotal |  | 413 |  |  | 413 |  |  | —
With an allowance recorded: |  |  |  |  |  |  |  |
Real Estate Loans |  |  |  |  |  |  |  |
Commercial |  | 50 |  |  | 50 |  |  | 50
Subtotal |  | 50 |  |  | 50 |  |  | 50
Total: |  |  |  |  |  |  |  |
Real Estate Loans: |  |  |  |  |  |  |  |
Commercial |  | 402 |  |  | 402 |  |  | —
Commercial Loans |  | 61 |  |  | 61 |  |  | 50
Total Impaired Loans | $ | 463 |  | $ | 463 |  | $ | 50
The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the three-month period ended March 31, 2022 (in thousands):
|  |  |  |  | Average Recorded |  |  |  |  |  | Interest Income
|  |  |  |  | Investment |  |  |  |  |  | Recognized
|  |  | 2022 |  |  |  | 2022
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  | $ | 1,650 |  |  |  |  | $ | 17
Commercial Loans |  |  |  |  | 16 |  |  |  |  |  | —
Total |  |  |  | $ | 1,666 |  |  |  |  | $ | 17
Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review also annually reviews relationships of $1,500,000 and over to assign or re-affirm risk ratings. 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 presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of March 31, 2023 and December 31, 2022 (in thousands):
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due and still accruing |  |  | Non-accrual |  | Total Past Due and Non-Accrual |  | Total Loans |  |  |
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 300,268 |  | $ | 978 |  | $ | 28 |  | $ | - |  | $ | 437 |  | $ | 1,443 |  | $ | 301,711 |  |  |
Commercial |  | 665,992 |  |  | 453 |  |  | - |  |  | - |  |  | 1,941 |  |  | 2,394 |  |  | 668,386 |  |  |
Agricultural |  | 68,381 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 68,381 |  |  |
Construction |  | 32,368 |  |  | 23 |  |  | - |  |  | - |  |  | - |  |  | 23 |  |  | 32,391 |  |  |
Commercial loans |  | 207,466 |  |  | 221 |  |  | 86 |  |  | - |  |  | 115 |  |  | 422 |  |  | 207,888 |  |  |
Other agricultural loans |  | 34,033 |  |  | - |  |  |  |  |  | - |  |  | - |  |  | - |  |  | 34,033 |  |  |
Consumer loans |  | 222,217 |  |  | 773 |  |  | 36 |  |  | - |  |  | 221 |  |  | 1,030 |  |  | 223,247 |  |  |
Total | $ | 1,530,725 |  | $ | 2,448 |  | $ | 150 |  | $ | - |  | $ | 2,714 |  | $ | 5,312 |  | $ | 1,536,037 |  |  |
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due and still accruing |  |  | Non-accrual |  | Total Past Due and Non-Accrual |  |  | Purchased Credit Impaired Loans |  | Total Loans
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 297,350 |  | $ | 187 |  | $ | 223 |  | $ | - |  | $ | 486 |  | $ | 896 |  | $ | 567 |  | $ | 298,813
Commercial |  | 648,688 |  |  | 405 |  |  | - |  |  | - |  |  | 402 |  |  | 807 |  |  | 2,049 |  |  | 651,544
Agricultural |  | 66,751 |  |  | 130 |  |  | - |  |  |  |  |  | - |  |  | 130 |  |  | 2,034 |  |  | 68,915
Construction |  | 32,469 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 32,469
Commercial loans |  | 185,485 |  |  | 71 |  |  | - |  |  | - |  |  | 61 |  |  | 132 |  |  | 1,640 |  |  | 187,257
Other agricultural loans |  | 35,277 |  |  | - |  |  | - |  |  |  |  |  | - |  |  | - |  |  | - |  |  | 35,277
Consumer loans |  | 198,893 |  |  | 853 |  |  | 239 |  |  | - |  |  | 164 |  |  | 1,256 |  |  | - |  |  | 200,149
Total | $ | 1,464,913 |  | $ | 1,646 |  | $ | 462 |  | $ | - |  | $ | 1,113 |  | $ | 3,221 |  | $ | 6,290 |  | $ | 1,474,424
Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for credit losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance. The following table presents the allowance for credit losses by the classes of the loan portfolio:
(In thousands) | Residential Real Estate |  | Commercial Real Estate |  |  | Agricultural |  |  | Construction |  | Commercial |  |  | Other Agricultural |  | Consumer |  | Total
Beginning balance, December 31, 2022 | $ | 2,833 |  | $ | 8,293 |  | $ | 259 |  | $ | 409 |  | $ | 2,445 |  | $ | 124 |  | $ | 2,636 |  | $ | 16,999
Impact of adopting ASC 326 |  | (1,545) |  |  | 5,527 |  |  | (200) |  |  | 388 |  |  | (1,156) |  |  | 3 |  |  | (551) |  |  | 2,466
Charge Offs |  | — |  |  | (112) |  |  | - |  |  | - |  |  | (50) |  |  | - |  |  | (202) |  |  | (364)
Recoveries |  | 6 |  |  | 6 |  |  | - |  |  | - |  |  | 6 |  |  | - |  |  | 26 |  |  | 44
Provision for credit losses |  | 65 |  |  | 11 |  |  | 62 |  |  | (94) |  |  | (87) |  |  | (45) |  |  | 388 |  |  | 300
Ending balance, March 31, 2023 | $ | 1,359 |  | $ | 13,725 |  | $ | 121 |  | $ | 703 |  | $ | 1,158 |  | $ | 82 |  | $ | 2,297 |  | $ | 19,445
Ending balance individually evaluated | $ | - |  | $ | — |  | $ | - |  | $ | - |  | $ | 1 |  | $ | - |  | $ | - |  | $ | 1
Ending balance collectively evaluated | $ | 1,359 |  | $ | 13,725 |  | $ | 121 |  | $ | 703 |  | $ | 1,157 |  | $ | 82 |  | $ | 2,297 |  | $ | 19,444
(In thousands) | Residential Real Estate |  | Commercial Real Estate |  |  | Agricultural |  |  | Construction |  | Commercial |  |  | Other Agricultural |  | Consumer |  | Total
Beginning balance, December 31, 2021 | $ | 2,175 |  | $ | 10,878 |  | $ | - |  | $ | 133 |  | $ | 1,490 |  | $ | - |  | $ | 1,766 |  | $ | 16,442
Charge Offs |  | (115) |  |  | - |  |  | - |  |  | - |  |  | (15) |  |  | - |  |  | (52) |  |  | (182)
Recoveries |  | 2 |  |  | 74 |  |  | - |  |  | - |  |  | 9 |  |  | - |  |  | 15 |  |  | 100
Provision for loan losses |  | 264 |  |  | (665) |  |  | 504 |  |  | 1 |  |  | 11 |  |  | 292 |  |  | (107) |  |  | 300
Ending balance, March 31, 2022 | $ | 2,326 |  | $ | 10,287 |  | $ | 504 |  | $ | 134 |  | $ | 1,495 |  | $ | 292 |  | $ | 1,622 |  | $ | 16,660
Ending balance individually evaluated ‎for impairment | $ | - |  | $ | 1,643 |  | $ | - |  | $ | - |  | $ | 16 |  | $ | - |  | $ | — |  | $ | 1,659
Ending balance collectively evaluated ‎for impairment | $ | 2,326 |  | $ | 8,644 |  | $ | 504 |  | $ | 134 |  | $ | 1,479 |  | $ | 292 |  | $ | 1,622 |  | $ | 15,001
The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience. The Company chose to apply qualitative factors based on “quantitative metrics” which link the quantifiable metrics to historical changes in the qualitative factor categories. The Company also chose to apply economic projections to the model. A select group of economic indicators was utilized which was then correlated to the historical loss experience of the Company and its peers. Based on the correlation results, the economic adjustments are then weighted for relevancy and applied to the individual loan pools. The following table presents the carrying value of loans on nonaccrual status and loans past due over 90 days still accruing interest (in thousands):
|  | Nonaccrual |  |  | Nonaccrual |  |  |  |  |  | Loans Past Due |  |  |
|  | with no |  |  | with |  |  | Total |  |  | Over 90 Days |  |  | Total
| ACL |  | ACL |  | Nonaccrual |  | Still Accruing |  | Nonperforming
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 437 |  | $ | - |  | $ | 437 |  | $ | - |  | $ | 437
Commercial |  | 1,941 |  |  | - |  |  | 1,941 |  |  | - |  |  | 1,941
Agricultural |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial loans |  | 100 |  |  | 15 |  |  | 115 |  |  | - |  |  | 115
Other agricultural loans |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Consumer loans |  | 221 |  |  | - |  |  | 221 |  |  | - |  |  | 221
Total | $ | 2,699 |  | $ | 15 |  | $ | 2,714 |  | $ | - |  | $ | 2,714
Based on the most recent analysis performed, the following table presents the recorded investment in non-homogenous pools by internal risk rating systems (in thousands):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  | Revolving |  |
|  |  |  |  | Term Loans Amortized Costs Basis by Origination Year |  | Loans |  | Loans |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Amortized |  | Converted |  |
March 31, 2023 |  |  |  |  |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Cost Basis |  | to Term |  | Total
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 25,867 | $ | 133,953 | $ | 116,254 | $ | 75,366 | $ | 76,615 | $ | 217,831 | $ | 17,673 | $ | - | $ | 663,559
Special Mention |  |  |  |  |  | - |  | - |  | 243 |  | - |  | - |  | 819 |  | - |  | - |  | 1,062
Substandard |  |  |  |  |  | - |  | - |  | - |  | 1,472 |  | 290 |  | 2,003 |  | - |  | - |  | 3,765
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 25,867 | $ | 133,953 | $ | 116,497 | $ | 76,838 | $ | 76,905 | $ | 220,653 | $ | 17,673 | $ | - | $ | 668,386
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | 112 | $ | - | $ | - | $ | - | $ | 112
Real Estate - Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 1,033 | $ | 13,433 | $ | 5,607 | $ | 9,187 | $ | 8,579 | $ | 27,429 | $ | 580 | $ | - | $ | 65,848
Special Mention |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | 432 |  | - |  | - |  | 432
Substandard |  |  |  |  |  | - |  | 524 |  | - |  | 1,064 |  | - |  | 188 |  | 325 |  | - |  | 2,101
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 1,033 | $ | 13,957 | $ | 5,607 | $ | 10,251 | $ | 8,579 | $ | 28,049 | $ | 905 | $ | - | $ | 68,381
Real Estate - Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 28,394 | $ | 54,591 | $ | 30,757 | $ | 22,901 | $ | 14,153 | $ | 23,003 | $ | 33,754 | $ | - | $ | 207,553
Special Mention |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | 181 |  | - |  | - |  | 181
Substandard |  |  |  |  |  | - |  | 32 |  | 24 |  | 9 |  | - |  | 89 |  | - |  | - |  | 154
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 28,394 | $ | 54,623 | $ | 30,781 | $ | 22,910 | $ | 14,153 | $ | 23,273 | $ | 33,754 | $ | - | $ | 207,888
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | 50 | $ | - | $ | - | $ | - | $ | - | $ | 50
Other agricultural loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 734 | $ | 6,128 | $ | 3,389 | $ | 3,335 | $ | 3,084 | $ | 4,948 | $ | 11,374 | $ | - | $ | 32,992
Special Mention |  |  |  |  |  | - |  | - |  | 4 |  | 185 |  | 107 |  | - |  | 155 |  | - |  | 451
Substandard |  |  |  |  |  | - |  | - |  | 471 |  | - |  | 119 |  | - |  | - |  | - |  | 590
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 734 | $ | 6,128 | $ | 3,864 | $ | 3,520 | $ | 3,310 | $ | 4,948 | $ | 11,529 | $ | - | $ | 34,033
Other agricultural loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 56,028 | $ | 208,105 | $ | 156,007 | $ | 110,789 | $ | 102,431 | $ | 273,211 | $ | 63,381 | $ | - | $ | 969,952
Special Mention |  |  |  |  |  | - |  | - |  | 247 |  | 185 |  | 107 |  | 1,432 |  | 155 |  | - |  | 2,126
Substandard |  |  |  |  |  | - |  | 556 |  | 495 |  | 2,545 |  | 409 |  | 2,280 |  | 325 |  | - |  | 6,610
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 56,028 | $ | 208,661 | $ | 156,749 | $ | 113,519 | $ | 102,947 | $ | 276,923 | $ | 63,861 | $ | - | $ | 978,688
The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of December 31, 2022 (in thousands):
|  |  |  | Special |  |  |  |  | Doubtful |  |  |
| Pass |  | Mention |  | Substandard |  | or Loss |  | Total
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate loans | $ | 646,775 |  | $ | 1,079 |  | $ | 3,690 |  | $ | — |  | $ | 651,544
Real estate - agricultural |  | 66,444 |  |  | 368 |  |  | 2,103 |  |  | — |  |  | 68,915
Commercial loans |  | 186,966 |  |  | 184 |  |  | 107 |  |  | — |  |  | 187,257
Other agricultural loans |  | 34,071 |  |  | 556 |  |  | 650 |  |  | — |  |  | 35,277
Total | $ | 934,256 |  | $ | 2,187 |  | $ | 6,550 |  | $ | — |  | $ | 942,993
The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due over 90 days and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed monthly. The following table presents the carrying value of residential and consumer loans based on payment activity (in thousands):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  | Revolving |  |
|  |  |  |  | Term Loans Amortized Costs Basis by Origination Year |  | Loans |  | Loans |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Amortized |  | Converted |  |
March 31, 2023 |  |  |  |  |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Cost Basis |  | to Term |  | Total
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 4,363 | $ | 52,321 | $ | 61,338 | $ | 38,029 | $ | 17,635 | $ | 99,233 | $ | 28,355 | $ | - | $ | 301,274
Nonperforming |  |  |  |  |  | - |  | - |  | - |  | - |  | 58 |  | 328 |  | 51 |  | - |  | 437
Total |  |  |  |  | $ | 4,363 | $ | 52,321 | $ | 61,338 | $ | 38,029 | $ | 17,693 | $ | 99,561 | $ | 28,406 | $ | - | $ | 301,711
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 636 | $ | 21,113 | $ | 6,213 | $ | 1,340 | $ | 1,950 | $ | 832 | $ | 307 | $ | - | $ | 32,391
Nonperforming |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 636 | $ | 21,113 | $ | 6,213 | $ | 1,340 | $ | 1,950 | $ | 832 | $ | 307 | $ | - | $ | 32,391
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Consumer loans to individuals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 38,967 | $ | 98,034 | $ | 33,172 | $ | 20,602 | $ | 16,347 | $ | 14,845 | $ | 1,059 | $ | - | $ | 223,026
Nonperforming |  |  |  |  |  | - |  | 121 |  | 36 |  | 21 |  | 40 |  | 3 |  | - |  | - |  | 221
Total |  |  |  |  | $ | 38,967 | $ | 98,155 | $ | 33,208 | $ | 20,623 | $ | 16,387 | $ | 14,848 | $ | 1,059 | $ | - | $ | 223,247
Consumer loans to individuals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | 91 | $ | 70 | $ | 14 | $ | 10 | $ | 6 | $ | 11 | $ | - | $ | 202
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 43,966 | $ | 171,468 | $ | 100,723 | $ | 59,971 | $ | 35,932 | $ | 114,910 | $ | 29,721 | $ | - | $ | 556,691
Nonperforming |  |  |  |  |  | - |  | 121 |  | 36 |  | 21 |  | 98 |  | 331 |  | 51 |  | - |  | 658
Total |  |  |  |  | $ | 43,966 | $ | 171,589 | $ | 100,759 | $ | 59,992 | $ | 36,030 | $ | 115,241 | $ | 29,772 | $ | - | $ | 557,349
For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2022 (in thousands):
| Performing |  | Nonperforming |  | Total
December 31, 2022 |  |  |  |  |  |  |  |
Residential real estate loans | $ | 298,327 |  | $ | 486 |  | $ | 298,813
Construction |  | 32,469 |  |  | — |  |  | 32,469
Consumer loans to individuals |  | 199,985 |  |  | 164 |  |  | 200,149
Total | $ | 530,781 |  | $ | 650 |  | $ | 531,431
Occasionally, the Bank 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 Bank 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. During the period ended March 31, 2023, there were no modifications made to borrowers experiencing financial difficulty. The Company’s primary business activity as of March 31 2023 was with customers located in northeastern Pennsylvania and the New York counties of Delaware, Sullivan, Ontario, Otsego and Yates. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to repay their loans is influenced by the region’s economy. As of March 31, 2023, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $142.3 million of loans outstanding, or 9.3% of total loans outstanding, and residential rentals with loans outstanding of $116.00 million, or 7.6% of loans outstanding. For the three months ended March 31, 2023, the Company did not recognize any charge offs on loans in the named concentrations.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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