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Loans Receivable and Allowance for Credit Losses | 9 Months Ended
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Sep. 30, 2025
Loans Receivable and Allowance for Credit Losses [Abstract] |
Loans Receivable and Allowance for Credit Losses | 8.Loans Receivable and Allowance for Credit Losses Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands):
| September 30, 2025 |  |  | December 31, 2024 |
Real Estate Loans: |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 339,997 |  | 18.7 | % |  | $ | 330,856 |  | 19.3 | %
Commercial |  | 737,533 |  | 40.6 |  |  |  | 716,875 |  | 41.8 |
Agricultural |  | 60,680 |  | 3.3 |  |  |  | 63,488 |  | 3.7 |
Construction |  | 80,311 |  | 4.5 |  |  |  | 53,020 |  | 3.1 |
Commercial loans |  | 223,460 |  | 12.3 |  |  |  | 211,991 |  | 12.4 |
Other agricultural loans |  | 26,260 |  | 1.5 |  |  |  | 30,077 |  | 1.7 |
Consumer loans to individuals |  | 346,897 |  | 19.1 |  |  |  | 307,775 |  | 18.0 |
Total loans |  | 1,815,138 |  | 100.0 | % |  |  | 1,714,082 |  | 100.0 | %
Deferred fees, net |  | (456) |  |  |  |  |  | (444) |  |  |
Total loans receivable |  | 1,814,682 |  |  |  |  |  | 1,713,638 |  |  |
Allowance for credit losses |  | (19,911) |  |  |  |  |  | (19,843) |  |  |
Net loans receivable | $ | 1,794,771 |  |  |  |  | $ | 1,693,795 |  |  |
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 September 30, 2025 and December 31, 2024, foreclosed real estate owned totaled $771,000 and $0, respectively. During the three and nine months ended September 30, 2025, there were two additions to the foreclosed real estate category. As of September 30, 2025, the Company has initiated formal foreclosure proceedings on five properties classified as consumer residential mortgages with an aggregate carrying value of $259,000. The following tables show 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
September 30, 2025 | (In thousands)
Individually evaluated | $ | 1,077 |  | $ | 5,472 |  | $ | — |  | $ | 50 |  | $ | 743 |  | $ | 25 |  | $ | 1,351 |  | $ | 8,718
Collectively evaluated |  | 338,920 |  |  | 732,061 |  |  | 60,680 |  |  | 80,261 |  |  | 222,717 |  |  | 26,235 |  |  | 345,546 |  |  | 1,806,420
Total Loans | $ | 339,997 |  | $ | 737,533 |  | $ | 60,680 |  | $ | 80,311 |  | $ | 223,460 |  | $ | 26,260 |  | $ | 346,897 |  | $ | 1,815,138
| Real Estate Loans |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  | Commercial |  |  | Other |  | Consumer |  |  |
| Residential |  | Commercial |  |  | Agricultural |  | Construction |  | Loans |  |  | Agricultural |  | Loans |  | Total
| (In thousands)
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated | $ | 940 |  | $ | 7,197 |  | $ | — |  | $ | — |  | $ | 854 |  | $ | — |  | $ | 1,031 |  | $ | 10,022
Collectively evaluated |  | 329,916 |  |  | 709,678 |  |  | 63,488 |  |  | 53,020 |  |  | 211,137 |  |  | 30,077 |  |  | 306,744 |  |  | 1,704,060
Total Loans | $ | 330,856 |  | $ | 716,875 |  | $ | 63,488 |  | $ | 53,020 |  | $ | 211,991 |  | $ | 30,077 |  | $ | 307,775 |  | $ | 1,714,082
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 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, in conjunction with a third-party consultant, also annually reviews all criticized credits and relationships of $1,500,000 and over to 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 September 30, 2025 and December 31, 2024 (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
September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 338,303 |  | $ | 368 |  | $ | 249 |  | $ | - |  | $ | 1,077 |  | $ | 1,694 |  | $ | 339,997
Commercial |  | 733,032 |  |  | 483 |  |  | - |  |  | - |  |  | 4,018 |  |  | 4,501 |  |  | 737,533
Agricultural |  | 60,041 |  |  | 592 |  |  | 47 |  |  | - |  |  | - |  |  | 639 |  |  | 60,680
Construction |  | 80,261 |  |  | - |  |  | - |  |  | - |  |  | 50 |  |  | 50 |  |  | 80,311
Commercial loans |  | 223,034 |  |  | 333 |  |  | 24 |  |  | - |  |  | 69 |  |  | 426 |  |  | 223,460
Other agricultural loans |  | 26,027 |  |  | 208 |  |  | - |  |  | 25 |  |  | - |  |  | 233 |  |  | 26,260
Consumer loans |  | 344,738 |  |  | 505 |  |  | 303 |  |  | - |  |  | 1,351 |  |  | 2,159 |  |  | 346,897
Total | $ | 1,805,436 |  | $ | 2,489 |  | $ | 623 |  | $ | 25 |  | $ | 6,565 |  | $ | 9,702 |  | $ | 1,815,138
| 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, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 329,578 |  | $ | 70 |  | $ | 268 |  | $ | - |  | $ | 940 |  | $ | 1,278 |  | $ | 330,856
Commercial |  | 709,821 |  |  | 1,182 |  |  | 129 |  |  | - |  |  | 5,743 |  |  | 7,054 |  |  | 716,875
Agricultural |  | 63,488 |  |  | - |  |  | - |  |  |  |  |  | - |  |  | - |  |  | 63,488
Construction |  | 53,009 |  |  | 11 |  |  | - |  |  | - |  |  | - |  |  | 11 |  |  | 53,020
Commercial loans |  | 211,520 |  |  | 194 |  |  | 117 |  |  | 33 |  |  | 127 |  |  | 471 |  |  | 211,991
Other agricultural loans |  | 30,028 |  |  | 49 |  |  | - |  |  | - |  |  | - |  |  | 49 |  |  | 30,077
Consumer loans |  | 305,676 |  |  | 805 |  |  | 263 |  |  | 121 |  |  | 910 |  |  | 2,099 |  |  | 307,775
Total | $ | 1,703,120 |  | $ | 2,311 |  | $ | 777 |  | $ | 154 |  | $ | 7,720 |  | $ | 10,962 |  | $ | 1,714,082
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 Real Estate |  | Construction |  | Commercial |  |  | Other Agricultural |  | Consumer |  | Total
Beginning balance, December 31, 2024 | $ | 1,146 |  | $ | 11,406 |  | $ | 48 |  | $ | 884 |  | $ | 1,732 |  | $ | 162 |  | $ | 4,465 |  | $ | 19,843
Charge Offs |  | (63) |  |  | (62) |  |  | - |  |  | - |  |  | (83) |  |  | (48) |  |  | (1,273) |  |  | (1,529)
Recoveries |  | 3 |  |  | 8 |  |  | - |  |  | - |  |  | 99 |  |  | - |  |  | 115 |  |  | 225
(Release of) Provision for credit losses |  | 31 |  |  | (1,952) |  |  | (25) |  |  | 432 |  |  | 339 |  |  | 64 |  |  | 2,483 |  |  | 1,372
Ending balance, September 30, 2025 | $ | 1,117 |  | $ | 9,400 |  | $ | 23 |  | $ | 1,316 |  | $ | 2,087 |  | $ | 178 |  | $ | 5,790 |  | $ | 19,911
Ending balance individually evaluated | $ | - |  | $ | 294 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 395 |  | $ | 689
Ending balance collectively evaluated | $ | 1,117 |  | $ | 9,106 |  | $ | 23 |  | $ | 1,316 |  | $ | 2,087 |  | $ | 178 |  | $ | 5,395 |  | $ | 19,222
(In thousands) | Residential Real Estate |  | Commercial Real Estate |  |  | Agricultural Real Estate |  | Construction |  | Commercial |  |  | Other Agricultural |  | Consumer |  | Total
Beginning balance, June 30, 2025 | $ | 1,011 |  | $ | 11,039 |  | $ | 39 |  | $ | 1,163 |  | $ | 1,933 |  | $ | 164 |  | $ | 5,559 |  | $ | 20,908
Charge Offs |  | (63) |  |  | (13) |  |  | - |  |  | - |  |  | (83) |  |  | - |  |  | (490) |  |  | (649)
Recoveries |  | 3 |  |  | 8 |  |  | - |  |  | - |  |  | 3 |  |  | - |  |  | 30 |  |  | 44
(Release of) Provision for credit losses |  | 166 |  |  | (1,634) |  |  | (16) |  |  | 153 |  |  | 234 |  |  | 14 |  |  | 691 |  |  | (392)
Ending balance, September 30, 2025 | $ | 1,117 |  | $ | 9,400 |  | $ | 23 |  | $ | 1,316 |  | $ | 2,087 |  | $ | 178 |  | $ | 5,790 |  | $ | 19,911
(In thousands) | Residential Real Estate |  | Commercial Real Estate |  |  | Agricultural Real Estate |  | 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) |  |  | - |  |  | (1,297) |  |  | (1,382)
Recoveries |  | 42 |  |  | 106 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 77 |  |  | 225
(Release of) Provision for credit losses |  | (344) |  |  | (1,511) |  |  | (32) |  |  | (77) |  |  | 772 |  |  | 38 |  |  | 2,042 |  |  | 888
Ending balance, September 30, 2024 | $ | 1,049 |  | $ | 10,466 |  | $ | 26 |  | $ | 856 |  | $ | 1,894 |  | $ | 132 |  | $ | 4,276 |  | $ | 18,699
Ending balance individually evaluated ‎for impairment | $ | - |  | $ | 4 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 235 |  | $ | 239
Ending balance collectively evaluated ‎for impairment | $ | 1,049 |  | $ | 10,462 |  | $ | 26 |  | $ | 856 |  | $ | 1,894 |  | $ | 132 |  | $ | 4,041 |  | $ | 18,460
(In thousands) | Residential Real Estate |  | Commercial Real Estate |  |  | Agricultural Real Estate |  | Construction |  | Commercial |  |  | Other Agricultural |  | Consumer |  | Total
Beginning balance, June 30, 2024 | $ | 1,131 |  | $ | 9,552 |  | $ | 41 |  | $ | 840 |  | $ | 2,035 |  | $ | 130 |  | $ | 4,077 |  | $ | 17,806
Charge Offs |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (358) |  |  | (358)
Recoveries |  | - |  |  | 2 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 33 |  |  | 35
(Release of) Provision for credit losses |  | (82) |  |  | 912 |  |  | (15) |  |  | 16 |  |  | (141) |  |  | 2 |  |  | 524 |  |  | 1,216
Ending balance, September 30, 2024 | $ | 1,049 |  | $ | 10,466 |  | $ | 26 |  | $ | 856 |  | $ | 1,894 |  | $ | 132 |  | $ | 4,276 |  | $ | 18,699
During the nine months ended September 30, 2025, the Company recorded a provision for credit losses related to loans totaling $1,372,000. The increase in provision was due primarily to an increase in the consumer portfolio provision of $2,483,000, offset by a release of provision of $1,952,000 in the commercial real estate portfolio, and an increase of $841,000 in all other portfolios, net. Factors impacting the provision include changes in the cumulative loss rates applied to the respective loan pools due to loss activity being added or subtracted with the passage of time, and variances in Qualitative Factors and Economic Factors. 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
September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 1,077 |  | $ | - |  | $ | 1,077 |  | $ | - |  | $ | 1,077
Commercial |  | 3,998 |  |  | 20 |  |  | 4,018 |  |  | - |  |  | 4,018
Agricultural |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  | 50 |  |  | - |  |  | 50 |  |  | - |  |  | 50
Commercial loans |  | 69 |  |  | - |  |  | 69 |  |  | - |  |  | 69
Other agricultural loans |  | - |  |  | - |  |  | - |  |  | 25 |  |  | 25
Consumer loans |  | 358 |  |  | 993 |  |  | 1,351 |  |  | - |  |  | 1,351
Total | $ | 5,552 |  | $ | 1,013 |  | $ | 6,565 |  | $ | 25 |  | $ | 6,590
|  | Nonaccrual |  |  | Nonaccrual |  |  |  |  |  | Loans Past Due |  |  |
|  | with no |  |  | with |  |  | Total |  |  | Over 90 Days |  |  | Total
| ACL |  | ACL |  | Nonaccrual |  | Still Accruing |  | Nonperforming
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real Estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | $ | 936 |  | $ | 4 |  | $ | 940 |  | $ | - |  | $ | 940
Commercial |  | 5,739 |  |  | 4 |  |  | 5,743 |  |  | - |  |  | 5,743
Agricultural |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Construction |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Commercial loans |  | 127 |  |  | - |  |  | 127 |  |  | 33 |  |  | 160
Other agricultural loans |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Consumer loans |  | 570 |  |  | 340 |  |  | 910 |  |  | 121 |  |  | 1,031
Total | $ | 7,372 |  | $ | 348 |  | $ | 7,720 |  | $ | 154 |  | $ | 7,874
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 |  |
September 30, 2025 |  |  |  |  |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Cost Basis |  | to Term |  | Total
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 87,169 | $ | 99,681 | $ | 69,980 | $ | 116,116 | $ | 88,223 | $ | 243,881 | $ | 18,745 | $ | - | $ | 723,795
Special Mention |  |  |  |  |  | - |  | - |  | - |  | 205 |  | 2,036 |  | 1,089 |  | - |  | - |  | 3,330
Substandard |  |  |  |  |  | - |  | 135 |  | - |  | - |  | 2,446 |  | 7,427 |  | 400 |  | - |  | 10,408
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 87,169 | $ | 99,816 | $ | 69,980 | $ | 116,321 | $ | 92,705 | $ | 252,397 | $ | 19,145 | $ | - | $ | 737,533
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 62 | $ | - | $ | - | $ | 62
Real Estate - Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 2,984 | $ | 5,140 | $ | 3,470 | $ | 10,904 | $ | 3,736 | $ | 31,936 | $ | 345 | $ | - | $ | 58,515
Special Mention |  |  |  |  |  | 154 |  | 865 |  | - |  | - |  | - |  | 1,139 |  | - |  | - |  | 2,158
Substandard |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 7 |  | - |  | 7
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 3,138 | $ | 6,005 | $ | 3,470 | $ | 10,904 | $ | 3,736 | $ | 33,075 | $ | 352 | $ | - | $ | 60,680
Real Estate - Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 52,595 | $ | 42,889 | $ | 26,293 | $ | 25,747 | $ | 13,748 | $ | 19,565 | $ | 39,572 | $ | - | $ | 220,409
Special Mention |  |  |  |  |  | 35 |  | - |  | - |  | 23 |  | - |  | - |  | 14 |  | - |  | 72
Substandard |  |  |  |  |  | - |  | - |  | 259 |  | 334 |  | 588 |  | 798 |  | 1,000 |  | - |  | 2,979
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 52,630 | $ | 42,889 | $ | 26,552 | $ | 26,104 | $ | 14,336 | $ | 20,363 | $ | 40,586 | $ | - | $ | 223,460
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | 60 | $ | 23 | $ | - | $ | - | $ | - | $ | 83
Other agricultural loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 2,289 | $ | 2,892 | $ | 1,434 | $ | 2,560 | $ | 2,151 | $ | 3,676 | $ | 7,271 | $ | - | $ | 22,273
Special Mention |  |  |  |  |  | - |  | 370 |  | - |  | - |  | - |  | 1,342 |  | 800 |  | - |  | 2,512
Substandard |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 1,475 |  | - |  | 1,475
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 2,289 | $ | 3,262 | $ | 1,434 | $ | 2,560 | $ | 2,151 | $ | 5,018 | $ | 9,546 | $ | - | $ | 26,260
Other agricultural loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 48 | $ | - | $ | - | $ | 48
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 145,037 | $ | 150,602 | $ | 101,177 | $ | 155,327 | $ | 107,858 | $ | 299,058 | $ | 65,933 | $ | - | $ | 1,024,992
Special Mention |  |  |  |  |  | 189 |  | 1,235 |  | - |  | 228 |  | 2,036 |  | 3,570 |  | 814 |  | - |  | 8,072
Substandard |  |  |  |  |  | - |  | 135 |  | 259 |  | 334 |  | 3,034 |  | 8,225 |  | 2,882 |  | - |  | 14,869
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 145,226 | $ | 151,972 | $ | 101,436 | $ | 155,889 | $ | 112,928 | $ | 310,853 | $ | 69,629 | $ | - | $ | 1,047,933
‎
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  | Revolving |  |
|  |  |  |  | Term Loans Amortized Costs Basis by Origination Year |  | Loans |  | Loans |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Amortized |  | Converted |  |
December 31, 2024 |  |  |  |  |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Cost Basis |  | to Term |  | Total
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 102,773 | $ | 74,242 | $ | 121,881 | $ | 104,720 | $ | 60,941 | $ | 217,435 | $ | 20,829 | $ | - | $ | 702,821
Special Mention |  |  |  |  |  | 5 |  | - |  | 262 |  | - |  | - |  | 2,148 |  | - |  | - |  | 2,415
Substandard |  |  |  |  |  | 135 |  | - |  | - |  | 2,461 |  | 1,405 |  | 7,238 |  | 400 |  | - |  | 11,639
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 102,913 | $ | 74,242 | $ | 122,143 | $ | 107,181 | $ | 62,346 | $ | 226,821 | $ | 21,229 | $ | - | $ | 716,875
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Real Estate - Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 6,257 | $ | 3,756 | $ | 12,036 | $ | 3,960 | $ | 7,148 | $ | 29,038 | $ | 336 | $ | - | $ | 62,531
Special Mention |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | 773 |  | 150 |  | - |  | 923
Substandard |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 34 |  | - |  | 34
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 6,257 | $ | 3,756 | $ | 12,036 | $ | 3,960 | $ | 7,148 | $ | 29,811 | $ | 520 | $ | - | $ | 63,488
Real Estate - Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 57,939 | $ | 34,088 | $ | 29,465 | $ | 19,163 | $ | 10,233 | $ | 15,042 | $ | 42,906 | $ | - | $ | 208,836
Special Mention |  |  |  |  |  | - |  | - |  | 25 |  | - |  | - |  | 106 |  | 14 |  | - |  | 145
Substandard |  |  |  |  |  | - |  | 277 |  | 429 |  | 711 |  | - |  | 743 |  | 850 |  | - |  | 3,010
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 57,939 | $ | 34,365 | $ | 29,919 | $ | 19,874 | $ | 10,233 | $ | 15,891 | $ | 43,770 | $ | - | $ | 211,991
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | 11 | $ | - | $ | - | $ | 8 | $ | 51 | $ | 30 | $ | - | $ | 100
Other agricultural loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 4,358 | $ | 1,836 | $ | 3,721 | $ | 2,379 | $ | 2,134 | $ | 4,353 | $ | 9,697 | $ | - | $ | 28,478
Special Mention |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | 127 |  | - |  | - |  | 127
Substandard |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 1,472 |  | - |  | 1,472
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 4,358 | $ | 1,836 | $ | 3,721 | $ | 2,379 | $ | 2,134 | $ | 4,480 | $ | 11,169 | $ | - | $ | 30,077
Other agricultural loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  |  | $ | 171,327 | $ | 113,922 | $ | 167,103 | $ | 130,222 | $ | 80,456 | $ | 265,868 | $ | 73,768 | $ | - | $ | 1,002,666
Special Mention |  |  |  |  |  | 5 |  | - |  | 287 |  | - |  | - |  | 3,154 |  | 164 |  | - |  | 3,610
Substandard |  |  |  |  |  | 135 |  | 277 |  | 429 |  | 3,172 |  | 1,405 |  | 7,981 |  | 2,756 |  | - |  | 16,155
Doubtful |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 171,467 | $ | 114,199 | $ | 167,819 | $ | 133,394 | $ | 81,861 | $ | 277,003 | $ | 76,688 | $ | - | $ | 1,022,431
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 |  |
September 30, 2025 |  |  |  |  |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Cost Basis |  | to Term |  | Total
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 15,317 | $ | 36,098 | $ | 39,157 | $ | 55,459 | $ | 48,761 | $ | 110,550 | $ | 33,578 | $ | - | $ | 338,920
Nonperforming |  |  |  |  |  | - |  | - |  | 125 |  | 151 |  | 170 |  | 612 |  | 19 |  | - |  | 1,077
Total |  |  |  |  | $ | 15,317 | $ | 36,098 | $ | 39,282 | $ | 55,610 | $ | 48,931 | $ | 111,162 | $ | 33,597 | $ | - | $ | 339,997
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 63 | $ | - | $ | - | $ | 63
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 20,134 | $ | 32,025 | $ | 15,635 | $ | 8,662 | $ | 328 | $ | 105 | $ | 3,372 | $ | - | $ | 80,261
Nonperforming |  |  |  |  |  | - |  | - |  | - |  | 50 |  | - |  | - |  | - |  | - |  | 50
Total |  |  |  |  | $ | 20,134 | $ | 32,025 | $ | 15,635 | $ | 8,712 | $ | 328 | $ | 105 | $ | 3,372 | $ | - | $ | 80,311
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Consumer loans to individuals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 110,587 | $ | 103,481 | $ | 69,058 | $ | 37,566 | $ | 10,717 | $ | 12,747 | $ | 1,390 | $ | - | $ | 345,546
Nonperforming |  |  |  |  |  | 73 |  | 308 |  | 414 |  | 409 |  | 60 |  | 87 |  | - |  | - |  | 1,351
Total |  |  |  |  | $ | 110,660 | $ | 103,789 | $ | 69,472 | $ | 37,975 | $ | 10,777 | $ | 12,834 | $ | 1,390 | $ | - | $ | 346,897
Consumer loans to individuals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | 6 | $ | 325 | $ | 383 | $ | 337 | $ | 108 | $ | 114 | $ | - | $ | - | $ | 1,273
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 146,038 | $ | 171,604 | $ | 123,850 | $ | 101,687 | $ | 59,806 | $ | 123,402 | $ | 38,340 | $ | - | $ | 764,727
Nonperforming |  |  |  |  |  | 73 |  | 308 |  | 539 |  | 610 |  | 230 |  | 699 |  | 19 |  | - |  | 2,478
Total |  |  |  |  | $ | 146,111 | $ | 171,912 | $ | 124,389 | $ | 102,297 | $ | 60,036 | $ | 124,101 | $ | 38,359 | $ | - | $ | 767,205
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  | Revolving |  |
|  |  |  |  | Term Loans Amortized Costs Basis by Origination Year |  | Loans |  | Loans |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Amortized |  | Converted |  |
December 31, 2024 |  |  |  |  |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Cost Basis |  | to Term |  | Total
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 22,842 | $ | 41,384 | $ | 60,194 | $ | 52,712 | $ | 32,161 | $ | 89,965 | $ | 30,658 | $ | - | $ | 329,916
Nonperforming |  |  |  |  |  | - |  | 125 |  | 52 |  | 184 |  | - |  | 560 |  | 19 |  | - |  | 940
Total |  |  |  |  | $ | 22,842 | $ | 41,509 | $ | 60,246 | $ | 52,896 | $ | 32,161 | $ | 90,525 | $ | 30,677 | $ | - | $ | 330,856
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 28,817 | $ | 12,986 | $ | 9,024 | $ | 431 | $ | - | $ | 144 | $ | 1,618 | $ | - | $ | 53,020
Nonperforming |  |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total |  |  |  |  | $ | 28,817 | $ | 12,986 | $ | 9,024 | $ | 431 | $ | - | $ | 144 | $ | 1,618 | $ | - | $ | 53,020
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
Consumer loans to individuals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 125,254 | $ | 93,392 | $ | 52,009 | $ | 15,679 | $ | 8,316 | $ | 11,207 | $ | 887 | $ | - | $ | 306,744
Nonperforming |  |  |  |  |  | 97 |  | 401 |  | 377 |  | 114 |  | 26 |  | 16 |  | - |  | - |  | 1,031
Total |  |  |  |  | $ | 125,351 | $ | 93,793 | $ | 52,386 | $ | 15,793 | $ | 8,342 | $ | 11,223 | $ | 887 | $ | - | $ | 307,775
Consumer loans to individuals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  |  |  | $ | 123 | $ | 511 | $ | 850 | $ | 203 | $ | 87 | $ | 75 | $ | - | $ | - | $ | 1,849
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  |  |  | $ | 176,913 | $ | 147,762 | $ | 121,227 | $ | 68,822 | $ | 40,477 | $ | 101,316 | $ | 33,163 | $ | - | $ | 689,680
Nonperforming |  |  |  |  |  | 97 |  | 526 |  | 429 |  | 298 |  | 26 |  | 576 |  | 19 |  | - |  | 1,971
Total |  |  |  |  | $ | 177,010 | $ | 148,288 | $ | 121,656 | $ | 69,120 | $ | 40,503 | $ | 101,892 | $ | 33,182 | $ | - | $ | 691,651
Occasionally, the Bank modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and 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 nine months ended September 30, 2025, there were modifications made to borrowers experiencing financial difficulty consisting of eight loan relationships. The following table presents modifications made to borrowers experiencing financial difficulty:
Significant Payment Delay
|  | Amortized Cost Basis at September 30, 2025 |  |  | % of Total Class of Financing Receivable |  |  |  | Financial Effect
|  | (in thousands) |  |  |  |  |  |  |
Commercial real estate loans | $ | 1,214 |  |  | 0.16 | % |  |  | Deferred principal for 3-6 months
Commercial loans |  | 832 |  |  | 0.37 |  |  |  | Deferred principal for 3-6 months
Consumer loans to individuals |  | 5 |  |  | — |  |  |  | Deferred principal for 4 months
Total | $ | 2,051 |  |  |  |  |  |  |
Term Extension
|  | Amortized Cost Basis at September 30, 2025 |  |  | % of Total Class of Financing Receivable |  |  |  | Financial Effect
|  | (in thousands) |  |  |  |  |  |  |
Residential real estate loans | $ | 49 |  |  | 0.01 | % |  |  | Added a weighted-average 10.0 years to the life of loans
Commercial real estate loans |  | 831 |  |  | 0.11 |  |  |  | Added a weighted-average 6.0 months to the life of loans
Commercial loans |  | 273 |  |  | 0.12 |  |  |  | Added a weighted-average 5.0 years to the life of loans
Total | $ | 1,153 |  |  |  |  |  |  |
Combination -Significant Payment Delay and Term Extension
|  | Amortized Cost Basis at September 30, 2025 |  |  | % of Total Class of Financing Receivable |  |  |  | Financial Effect
Commercial real estate loans | $ | 4,264 |  |  | 0.58 |  |  |  | Deferred principal for 3-9 months and extended term by 9 months
Commercial loans |  | 127 |  |  | 0.06 | % |  |  | Deferred principal for 4 months and extended term by 4 months
Total | $ | 4,391 |  |  |  |  |  |  |
Of the modifications made to borrowers experiencing financial difficulty, there were none that had a payment default during the period. The Company’s primary business activity as of September 30, 2025 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 September 30, 2025, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $169.6 million of loans outstanding, or 9.4% of total loans outstanding, and residential rentals with loans outstanding of $116.6 million, or 6.5% of loans outstanding. For the nine months ended September 30, 2025, the Company recognized charge offs of $0 on commercial rentals and $0 on residential rentals. The following table presents additional details regarding the company’s largest loan concentrations by industry as of September 30, 2025 (in thousands):
Account Type |  |  | Outstanding as of September 30, 2025 |  |  | Percent of Loans as of September 30, 2025 |
Commercial Rentals |  | $ | 169,560 |  |  | 9.38 | %
Residential Rentals |  |  | 116,554 |  |  | 6.45 |
Hotels/Motels |  |  | 121,907 |  |  | 6.74 |
Builders/Contractors |  |  | 36,702 |  |  | 2.03 |
Dairy Cattle/Milk Product |  |  | 43,253 |  |  | 2.39 |
Fuel/Gas Stations |  |  | 48,924 |  |  | 2.71 |
Government Support |  |  | 30,283 |  |  | 1.68 |
Mobile Home Park |  |  | 21,723 |  |  | 1.20 |
Wineries |  |  | 20,542 |  |  | 1.14 |
Camps |  |  | 23,336 |  |  | 1.29 |
Resorts |  |  | 38,294 |  |  | 2.12 |

X
- Definition The entire disclosure for claims held for amounts due to 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 -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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