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Loans Receivable and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Loans Receivable and Allowance for Credit Losses [Abstract]



	June 30, 2024				December 31, 2023
Real Estate Loans:
Residential	$	317,507	19.3	%	$	316,546	19.7	%
Commercial		685,212	41.8			675,156	42.1
Agricultural		60,963	3.7			63,859	4.0
Construction		48,030	2.9			51,453	3.2
Commercial loans		208,658	12.7			200,576	12.5
Other agricultural loans		31,281	1.9			31,966	2.0
Consumer loans to individuals		289,880	17.7			264,321	16.5
Total loans		1,641,531	100.0	%		1,603,877	100.0	%
Deferred fees, net		(176)				(259)
Total loans receivable		1,641,355				1,603,618
Allowance for credit losses		(17,806)				(18,968)
Net loans receivable	$	1,623,549			$	1,584,650

Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
June 30, 2024	(In thousands)
Individually evaluated	$	953	$	5,780	$	—	$	—	$	108	$	—	$	800	$	7,641
Collectively evaluated		316,554		679,432		60,963		48,030		208,550		31,281		289,080		1,633,890
Total Loans	$	317,507	$	685,212	$	60,963	$	48,030	$	208,658	$	31,281	$	289,880	$	1,641,531



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
	(In thousands)
December 31, 2023
Individually evaluated	$	432	$	2,211	$	—	$	—	$	4,264	$	—	$	715	$	7,622
Collectively evaluated		316,114		672,945		63,859		51,453		196,312		31,966		263,606		1,596,255
Total Loans	$	316,546	$	675,156	$	63,859	$	51,453	$	200,576	$	31,966	$	264,321	$	1,603,877

Loan Portfolio Summarized by the Past Due Status



	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
June 30, 2024
Real Estate loans
Residential	$	315,355	$	1,150	$	49	$	-	$	953	$	2,152	$	317,507
Commercial		678,714		718		-		-		5,780		6,498		685,212
Agricultural		60,944		19		-		-		-		19		60,963
Construction		47,991		-		39		-		-		39		48,030
Commercial loans		208,280		236		34		-		108		378		208,658
Other agricultural loans		31,281		-				-		-		-		31,281
Consumer loans		288,278		616		186		-		800		1,602		289,880
Total	$	1,630,843	$	2,739	$	308	$	-	$	7,641	$	10,688	$	1,641,531



	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
December 31, 2023
Real Estate loans
Residential	$	315,224	$	877	$	13	$	-	$	432	$	1,322	$	316,546
Commercial		666,768		6,177		-		-		2,211		8,388		675,156
Agricultural		63,732		127		-				-		127		63,859
Construction		51,435		-		18		-		-		18		51,453
Commercial loans		192,988		3,170		154		-		4,264		7,588		200,576
Other agricultural loans		31,959		7		-				-		7		31,966
Consumer loans		262,578		865		163		-		715		1,743		264,321
Total	$	1,584,684	$	11,223	$	348	$	-	$	7,622	$	19,193	$	1,603,877

Allowance for Loan Losses and Recorded Investment in Financing Receivables


(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2023	$	1,351	$	11,871	$	58	$	933	$	1,207	$	94	$	3,454	$	18,968
Charge Offs		-		-		-		-		(85)		-		(939)		(1,024)
Recoveries		42		104		-		-		-		-		44		190
(Release of) Provision for credit losses		(262)		(2,423)		(17)		(93)		913		36		1,518		(328)
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806
Ending balance individually evaluated	$	-	$	-	$	-	$	-	$	-	$	-	$	164	$	164
Ending balance collectively evaluated	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	3,913	$	17,642


(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2024	$	1,197	$	9,831	$	84	$	831	$	1,987	$	168	$	3,922	$	18,020
Charge Offs		-		-		-		-		(30)		-		(500)		(530)
Recoveries		-		2		-		-		-		-		17		19
(Release of) Provision for credit losses		(66)		(281)		(43)		9		78		(38)		638		297
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806



(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		(6)		(154)		-		-		(147)		-		(308)		(615)
Recoveries		6		9		-		-		6		-		46		67
Provision for credit losses		(24)		(2,422)		(4)		22		133		(41)		902		(1,434)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483
Ending balance individually evaluated ‎for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Ending balance collectively evaluated ‎for impairment	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483



(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2023	$	1,359	$	13,725	$	121	$	703	$	1,158	$	82	$	2,297	$	19,445
Charge Offs		(6)		(42)		-		-		(97)		-		(106)		(251)
Recoveries		—		3		-		-		—		-		20		23
Provision for loan losses		(89)		(2,433)		(66)		116		220		4		514		(1,734)
Ending balance, June 30, 2023	$	1,264	$	11,253	$	55	$	819	$	1,281	$	86	$	2,725	$	17,483

Summary of Carrying Value of Loan on Nonaccrual Status


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
June 30, 2024
Real Estate loans
Residential	$	953	$	-	$	953	$	-	$	953
Commercial		5,780		-		5,780		-		5,780
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		108		-		108		-		108
Other agricultural loans		-		-		-		-		-
Consumer loans		636		164		800		-		800
Total	$	7,477	$	164	$	7,641	$	-	$	7,641


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
December 31, 2023
Real Estate loans
Residential	$	432	$	-	$	432	$	-	$	432
Commercial		2,211		-		2,211		-		2,211
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		4,264		-		4,264		-		4,264
Other agricultural loans		-		-		-		-		-
Consumer loans		162		553		715		-		715
Total	$	7,069	$	553	$	7,622	$	-	$	7,622

Summary of Recorded Investment by Internal Risk Rating Systems

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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	26,939	$	79,565	$	129,495	$	108,654	$	65,325	$	241,147	$	14,150	$	-	$	665,275
Special Mention		-		300		311		2,431		-		2,835		294		-		6,171
Substandard		-		-		2,944		3,217		1,424		6,181		-		-		13,766
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	26,939	$	79,865	$	132,750	$	114,302	$	66,749	$	250,163	$	14,444	$	-	$	685,212

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Real Estate - Agriculture
Risk Rating
Pass	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	31,241	$	444	$	-	$	60,025
Special Mention		-		-		-		-		-		788		150		-		938
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,002	$	2,515	$	12,261	$	4,132	$	7,430	$	32,029	$	594	$	-	$	60,963

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	30,567	$	38,975	$	33,464	$	21,458	$	12,015	$	21,717	$	42,745	$	-	$	200,941
Special Mention		-		288		423		678		-		117		721		-		2,227
Substandard		-		-		2,845		557		44		49		1,995		-		5,490
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	30,567	$	39,263	$	36,732	$	22,693	$	12,059	$	21,883	$	45,461	$	-	$	208,658

Commercial loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	4	$	51	$	30	$	-	$	85

Other agricultural loans
Risk Rating
Pass	$	1,655	$	2,408	$	4,542	$	2,707	$	2,647	$	5,136	$	10,571	$	-	$	29,666
Special Mention		-		-		-		1		-		142		1,472		-		1,615
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-

Total	$	1,655	$	2,408	$	4,542	$	2,708	$	2,647	$	5,278	$	12,043	$	-	$	31,281

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	61,163	$	123,463	$	179,762	$	136,951	$	87,417	$	299,241	$	67,910	$	-	$	955,907
Special Mention		-		588		734		3,110		-		3,882		2,637		-		10,951
Substandard		-		-		5,789		3,774		1,468		6,230		1,995		-		19,256
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	61,163	$	124,051	$	186,285	$	143,835	$	88,885	$	309,353	$	72,542	$	-	$	986,114

‎


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2023		2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	78,496	$	131,948	$	112,102	$	65,949	$	72,480	$	186,116	$	13,332	$	-	$	660,423
Special Mention		1,300		411		243		1,331		-		6,157		1,579		-		11,021
Substandard		-		-		-		1,444		36		2,232		-		-		3,712
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	79,796	$	132,359	$	112,345	$	68,724	$	72,516	$	194,505	$	14,911	$	-	$	675,156

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	112	$	42	$	-	$	-	$	154

Real Estate - Agriculture
Risk Rating
Pass	$	2,635	$	12,509	$	5,433	$	7,606	$	7,746	$	24,654	$	522	$	-	$	61,105
Special Mention		-		-		-		-		399		490		150		-		1,039
Substandard		-		508		-		1,018		-		189		-		-		1,715
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,635	$	13,017	$	5,433	$	8,624	$	8,145	$	25,333	$	672	$	-	$	63,859

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	48,571	$	41,863	$	24,443	$	13,752	$	9,914	$	15,384	$	38,644	$	-	$	192,571
Special Mention		553		1,412		257		134		20		188		768		-		3,332
Substandard		-		126		342		656		-		49		3,500		-		4,673
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	49,124	$	43,401	$	25,042	$	14,542	$	9,934	$	15,621	$	42,912	$	-	$	200,576

Commercial loans
Current period gross charge-offs	$	-	$	32	$	24	$	4,856	$	-	$	41	$	-	$	-	$	4,953

Other agricultural loans
Risk Rating
Pass	$	2,670	$	5,286	$	3,251	$	2,912	$	2,373	$	3,836	$	11,091	$	-	$	31,419
Special Mention		-		-		2		185		86		-		155		-		428
Substandard		-		-		-		-		119		-		-		-		119
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,670	$	5,286	$	3,253	$	3,097	$	2,578	$	3,836	$	11,246	$	-	$	31,966

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	132,372	$	191,606	$	145,229	$	90,219	$	92,513	$	229,990	$	63,589	$	-	$	945,518
Special Mention		1,853		1,823		502		1,650		505		6,835		2,652		-		15,820
Substandard		-		634		342		3,118		155		2,470		3,500		-		10,219
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	134,225	$	194,063	$	146,073	$	94,987	$	93,173	$	239,295	$	69,741	$	-	$	971,557

Summary of Recorded Investment in Loan Classes Based on Payment Activity

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
June 30, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	5,508	$	33,444	$	62,335	$	55,302	$	33,460	$	97,694	$	28,811	$	-	$	316,554
Nonperforming		-		137		-		189		-		608		19		-		953
Total	$	5,508	$	33,581	$	62,335	$	55,491	$	33,460	$	98,302	$	28,830	$	-	$	317,507

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Payment Performance
Performing	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	11,403	$	23,927	$	9,813	$	459	$	-	$	215	$	2,213	$	-	$	48,030

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	67,755	$	110,808	$	63,631	$	19,965	$	11,249	$	14,785	$	887	$	-	$	289,080
Nonperforming		-		241		358		135		31		35		-		-		800
Total	$	67,755	$	111,049	$	63,989	$	20,100	$	11,280	$	14,820	$	887	$	-	$	289,880

Consumer loans to individuals
Current period gross charge-offs	$	38	$	216	$	479	$	113	$	58	$	35	$	-	$	-	$	939

Total
Payment Performance
Performing	$	84,666	$	168,179	$	135,779	$	75,726	$	44,709	$	112,694	$	31,911	$	-	$	653,664
Nonperforming		-		378		358		324		31		643		19		-		1,753
Total	$	84,666	$	168,557	$	136,137	$	76,050	$	44,740	$	113,337	$	31,930	$	-	$	655,417


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2023		2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	27,446	$	62,178	$	57,691	$	35,357	$	16,406	$	87,951	$	29,085	$	-	$	316,114
Nonperforming		-		-		-		-		58		324		50		-		432
Total	$	27,446	$	62,178	$	57,691	$	35,357	$	16,464	$	88,275	$	29,135	$	-	$	316,546

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	34	$	-	$	-	$	34

Construction
Payment Performance
Performing	$	23,500	$	14,906	$	6,791	$	1,599	$	1,829	$	624	$	2,204	$	-	$	51,453
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	23,500	$	14,906	$	6,791	$	1,599	$	1,829	$	624	$	2,204	$	-	$	51,453

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	127,243	$	76,339	$	24,584	$	14,343	$	10,217	$	9,942	$	938	$	-	$	263,606
Nonperforming		111		404		118		31		41		10		-		-		715
Total	$	127,354	$	76,743	$	24,702	$	14,374	$	10,258	$	9,952	$	938	$	-	$	264,321

Consumer loans to individuals
Current period gross charge-offs	$	45	$	710	$	200	$	35	$	45	$	28	$	4	$	-	$	1,067

Total
Payment Performance
Performing	$	178,189	$	153,423	$	89,066	$	51,299	$	28,452	$	98,517	$	32,227	$	-	$	631,173
Nonperforming		111		404		118		31		99		334		50		-		1,147
Total	$	178,300	$	153,827	$	89,184	$	51,330	$	28,551	$	98,851	$	32,277	$	-	$	632,320

Loan Modifications Made to Borrowers


Principal Payment Deferral

		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect

Commercial real estate loans	$	7,042	1.03	%	Deferred Principal for 2-12 months
Commercial loans		3,416	1.64		Deferred Principal for 2-12 months
Other agricultural loans		363	1.16		Deferred Principal for 4-6 months
Consumer loans		30	0.01		Deferred Principal for 12 months


Total	$	10,851

Payment Reduction

		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect

Commercial real estate loans	$	391	0.06	%	Reduced monthly payment, which resulted in a balloon payment at maturity

Total	$	391


Combination - Term Adjustment and Interest Rate Adjustment

		Amortized Cost Basis at June 30, 2024	% of Total Class of Financing Receivable		Financial Effect

Residential real estate loans	$	41	0.01	%	Reduced term by 5 years and increased interest rate from 4.75% to 9.25%
Consumer loans		29	0.01		Increase term by 6 months and increased interest rate from 9.19% to 12.99%

Total	$	70

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified (in thousands):


Amortized Cost Basis of Modified Loans That Subsequently Defaulted

		Principal Payment Deferral		Principal Payment Adjustment		Combination - Term Extension and Interest Rate Adjustment

Commercial real estate loans	$	533	$	-	$	-
Commercial loans		32		-		-
Other agricultural loans		190		-		-

	$	755	$	-	$	-

The following table depicts the performance of loans that have been modified in the last 12 months for which a payment default has occured (in thousands):


Payment Status (Amortized Cost Basis)

		30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total Past Due

Commercial real estate loans	$	533	$	-	$	-	$	533
Commercial loans		32		-		-		32
Other agricultural loans		190		-		-		190

	$	755	$	-	$	-	$	755

Summary of Loan Concentrations by Industry


Account Type		Outstanding as of June 30, 2024	Percent of Loans as of June 30, 2024

Commercial Rentals	$	146,099	8.90	%
Residential Rentals		112,764	6.87
Hotels/Motels		97,296	5.93
Builders/Contractors		35,755	2.18
Dairy Cattle/Milk Product		45,835	2.79
Fuel/Gas Stations		50,325	3.07
Government Support		25,232	1.54
Mobile Home Park		27,275	1.66
Wineries		23,961	1.46
Camps		24,625	1.50
Resorts		19,892	1.21