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Note 7 - Loans Receivable and Credit Disclosures

9 Months Ended

Sep. 30, 2024

7.	Loans Receivable and Credit Disclosures

The composition of loans receivable as of September 30, 2024 and December 31, 2023 is as follows (in thousands):

	*2024*			*2023*

Real estate - construction	$	65,812		$	63,050
Real estate - 1 to 4 family residential		297,331			289,404
Real estate - multi-family		201,888			195,536
Real estate - commercial		355,073			359,266
Real estate - agricultural		157,914			161,517
Commercial		93,534			89,729
Agricultural		124,207			119,136
Consumer and other		17,114			16,540
		1,312,873			1,294,178
Unallocated portfolio layer basis adjustments¹		462			410
Less allowance for credit losses		(17,562	)		(16,776	)
Loans receivable, net	$	1,295,773		$	1,277,812

¹ This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under the portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 11 (“Derivative Financial Instruments”) for additional information.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses (ACL) and other basis adjustments. Amortized cost is the principal balance outstanding, net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Accrued interest receivable on loans held for investment totaled $11.6 million and $9.4 million as of September 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses. Nonrefundable loan fees and origination costs are deferred and recognized as a yield adjustment over the life of the related loan.

The policy for charging off loans is consistent throughout all loan categories. A loan is charged off based on criteria that includes but is not limited to: delinquency status, financial condition of the entire customer credit line and underlying collateral coverage, economic or external conditions that might impact full repayment of the loan, legal issues, overdrafts, and the customer’s willingness to work with the Company.

Allowance for Credit Losses for Loans. The allowance for credit losses is an estimate of expected losses inherent within the Company's existing loans held for investment portfolio. Expected credit loss inherent in non-cancelable off-balance-sheet (“OBS”) credit exposures is accounted for as a separate liability on the balance sheet. The Company's allowance for credit losses for OBS credit exposures was $1.0 million and $1.1 million as of September 30, 2024 and December 31, 2023, respectively. The allowance for credit losses for loans held for investment, as reported in our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

The credit loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments which consist of construction real estate, 1 to 4 family residential real estate, multi-family real estate, commercial real estate, agricultural real estate, commercial, agricultural and consumer and other lending. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The key components in this estimation process include the following:

●

An initial forecast period of one year for all portfolio segments and OBS credit exposures. This period reflects management's expectation of losses based on forward-looking economic scenarios over that time.

●

A historical loss forecast period covering the remaining contractual life, adjusted for prepayments, by portfolio segment based on the change in key historical economic variables.

●

A reversion period of 1 year connecting the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date.

The Company primarily utilizes loss rate based undiscounted cash flow (UDCF) methods to estimate credit losses by portfolio segment. The UDCF methods obtain estimated life-time credit losses using the conceptual components described above.

Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimation of expected credit losses. The following provides the credit quality indicators and risk elements that are most relevant and most carefully considered and monitored for each loan portfolio segment.

Construction loans are underwritten utilizing independent appraisals, sensitivity analysis of absorption, vacancy and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. These estimates may prove to be inaccurate primarily due to unforeseen circumstances beyond the control of the borrower or lender. Construction loans often involve the disbursement of funds with repayment substantially dependent on the success of the ultimate project. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. The Company may require guarantees on these loans. The Company’s construction loans are secured primarily by properties located in its primary market area. National unemployment rate was a key economic forecast used in estimating expected credit losses for this segment as of December 31, 2023. National unemployment rate and national real gross domestic product (GDP) are key economic forecasts used in estimating expected credit losses for this segment as of September 30, 2024.

The Company originates 1-4 family real estate loans utilizing credit reports to supplement the underwriting process. The Company’s underwriting standards for 1-4 family loans are generally in accordance with FHLMC and FNMA manual underwriting guidelines. Properties securing 1-4 family real estate loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function and have been approved by the Board of Directors. The loan-to-value ratios normally do not exceed 90% without credit enhancements such as mortgage insurance. The Company will lend up to 100% of the lesser of the appraised value or purchase price for conventional 1-4 family real estate loans, provided private mortgage insurance is obtained. The Company’s 1-4 family real estate loans are secured primarily by properties located in its primary market area. The national unemployment rate is a key economic forecast used in estimating expected credit losses for this segment.

Multi-family, commercial and agricultural real estate loans are subject to underwriting standards and processes similar to commercial and agricultural operating loans, in addition to those unique to real estate loans. These loans are viewed primarily as cash flow loans and, secondarily, as loans secured by real estate. Multi-family, commercial and agricultural real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Loan-to-value generally does not exceed 80% of the cost or value of the assets. Loans are typically subject to interest rate adjustments between five and seven years from origination. Fully amortized monthly repayment terms normally do not exceed twenty-five years. Projections and cash flows that show ability to service debt within the amortization period are required. Property and casualty insurance is required to protect the Banks’ collateral interests. Appraisals on properties securing these loans are generally performed by fee appraisers approved by the Board of Directors. Because payments on multi-family, commercial and agricultural real estate loans are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. Management monitors and evaluates commercial and agricultural real estate loans based on collateral and risk rating criteria. The Company may require guarantees on these loans. The Company’s multi-family, commercial and agricultural real estate loans are secured primarily by properties located in its primary market areas. The national unemployment rate and the national real GDP were key economic forecasts used in estimating expected credit losses for the multi-family and commercial real estate segments as of December 31, 2023. The national unemployment rate is a key economic forecast used in estimate credit losses for the multi-family and commercial real estate segments as of September 30, 2024. The national real GDP was a key economic forecast used in estimating expected credit losses for the agricultural real estate segment as of December 31, 2023. The national unemployment rate and national real GDP are key economic forecasts used in estimating expected credit losses for the agricultural real estate segment as of September 30, 2024.

Commercial and agricultural operating loans are underwritten based on the Company’s examination of current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. This underwriting includes the evaluation of cash flows of the borrower, underlying collateral, if applicable, and the borrower’s ability to manage its business activities. The cash flows of borrowers and the collateral securing these loans may fluctuate in value after the initial evaluation. A first priority lien on the general assets of the business normally secures these types of loans. Loan-to-value limits vary and are dependent upon the nature and type of the underlying collateral and the financial strength of the borrower. Crop and hail insurance is required for most agricultural borrowers. Loans are generally guaranteed by the principal(s). The Company’s commercial and agricultural operating lending is primarily in its primary market area. The national unemployment rate and the national real GDP were key economic forecasts used in estimating expected credit losses for the commercial operating segment as of December 31, 2023. The national unemployment rate is a key economic forecast used in estimating expected credit losses for the commercial operating segment as of September 30, 2024. The national real GDP was a key economic forecast used in estimating expected credit losses for the agricultural operating segment as of December 31, 2023. The national unemployment rate and national real GDP are key economic forecasts used in estimating expected credit losses for the agricultural operating segment as of September 30, 2024.

Consumer and other loans utilize credit reports to supplement the underwriting process. The underwriting standards include a determination of the applicant’s payment history on other debts and an assessment of their ability to meet existing obligations and payments on the proposed loan. To monitor and manage loan risk, policies and procedures are developed and modified, as needed by management. This activity, coupled with smaller loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, market conditions are reviewed by management on a regular basis. The Iowa real GDP and Iowa retail trade earnings were key economic forecasts used in estimating expected credit losses for this segment as of December 31, 2023. The national unemployment rate is a key economic forecast used in estimating expected credit losses for this segment as of September 30, 2024.

Activity in the allowance for credit losses, on a disaggregated basis, for the three and nine months ended September 30, 2024 and 2023 is as follows (in thousands):

	*Three Months Ended September 30, 2024*
			1-4 Family
	Construction		Residential		Multi-family			Commercial			Agricultural							Consumer
	Real Estate		Real Estate		Real Estate			Real Estate			Real Estate		Commercial			Agricultural		and Other			Total
Balance, June 30, 2024	$	413	$	3,349	$	2,584		$	5,530		$	1,226	$	1,912		$	1,710	$	479		$	17,203
Credit loss expense (benefit) ¹		151		400		(373	)		(521	)		333		413			5		(39	)		369
Recoveries of loans charged-off		-		1		-			-			-		2			-		-			3
Loans charged-off		-		-		-			-			-		(4	)		-		(9	)		(13	)
Balance, September 30, 2024	$	564	$	3,750	$	2,211		$	5,009		$	1,559	$	2,323		$	1,715	$	431		$	17,562

(1)	The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense of $2 thousand related to off-balance sheet credit exposures.

	*Nine Months Ended September 30, 2024*
			1-4 Family
	Construction		Residential		Multi-family			Commercial			Agricultural							Consumer
	Real Estate		Real Estate		Real Estate			Real Estate			Real Estate		Commercial			Agricultural		and Other			Total
Balance, December 31, 2023	$	408	$	3,333	$	2,542		$	5,236		$	1,238	$	1,955		$	1,607	$	457		$	16,776
Credit loss expense (benefit)¹		156		414		(331	)		(227	)		321		371			108		(20	)		792
Recoveries of loans charged-off		-		3		-			-			-		4			-		3			10
Loans charged-off		-		-		-			-			-		(7	)		-		(9	)		(16	)
Balance, September 30, 2024	$	564	$	3,750	$	2,211		$	5,009		$	1,559	$	2,323		$	1,715	$	431		$	17,562

(1)	The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $70 thousand related to off-balance sheet credit exposures.

	*Three Months Ended September 30, 2023*
			1-4 Family
	Construction		Residential			Multi-family			Commercial			Agricultural							Consumer
	Real Estate		Real Estate			Real Estate			Real Estate			Real Estate		Commercial			Agricultural		and Other		Total
Balance, June 30, 2023	$	412	$	3,357		$	2,524		$	5,033		$	1,214	$	2,014		$	1,358	$	407	$	16,319
Credit loss expense (benefit) ¹		4		(100	)		(29	)		(35	)		15		(142	)		40		42		(205	)
Recoveries of loans charged-off		-		1			-			-			-		2			-		1		4
Loans charged-off		-		-			-			-			-		-			-		-		-
Balance, September 30, 2023	$	416	$	3,258		$	2,495		$	4,998		$	1,229	$	1,874		$	1,398	$	450	$	16,118

(1)	The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $69 thousand related to off-balance sheet credit exposures.

	*Nine Months Ended September 30, 2023*
				1-4 Family
	Construction			Residential			Multi-family			Commercial			Agricultural									Consumer
	Real Estate			Real Estate			Real Estate			Real Estate			Real Estate			Commercial			Agricultural			and Other		Total
Balance, December 31, 2022	$	730		$	3,028		$	2,493		$	4,742		$	1,625		$	1,153		$	1,705		$	221	$	15,697
Impact of adopting ASC 326		(395	)		242			(24	)		513			(398	)		449			(61	)		192		518
Credit loss expense (benefit) ¹		81			(15	)		26			(262	)		2			301			(82	)		29		80
Recoveries of loans charged-off		-			3			-			5			-			8			-			8		24
Loans charged-off		-			-			-			-			-			(37	)		(164	)		-		(201	)
Balance, September 30, 2023	$	416		$	3,258		$	2,495		$	4,998		$	1,229		$	1,874		$	1,398		$	450	$	16,118

(1)	The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $46 thousand related to off-balance sheet credit exposures.

Collateral Dependent Loans. The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans (in thousands):

	Primary Type of Collateral
September 30, 2024	Real Estate		Equipment		Other		Total		ACL Allocation

Real estate - construction	$	62	$	-	$	-	$	62	$	-
Real estate - 1 to 4 family residential		500		-		-		500		40
Real estate - multi-family		2,020		-		-		2,020		-
Real estate - commercial		11,360		-		-		11,360		-
Real estate - agricultural		1,087		-		-		1,087		-
Commercial		108		763		934		1,805		559
Agricultural		218		9		396		623		36
Consumer and other		-		-		5		5		-

	$	15,355	$	772	$	1,335	$	17,462	$	635

	Primary Type of Collateral
December 31, 2023	Real Estate		Equipment		Other		Total		ACL Allocation

Real estate - construction	$	66	$	-	$	-	$	66	$	-
Real estate - 1 to 4 family residential		678		-		-		678		10
Real estate - multi-family		2,034		-		-		2,034		-
Real estate - commercial		8,993		-		-		8,993		-
Real estate - agricultural		449		-		-		449		-
Commercial		118		-		101		219		96
Agricultural		239		669		402		1,310		-
Consumer and other		-		-		-		-		-

	$	12,577	$	669	$	503	$	13,749	$	106

Nonaccrual Loans. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower's ability to meet payments of interest or principal when they become due, which is generally when a loan is 90 days or more past due unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual status, all previously accrued and unpaid interest is reversed against interest income. Loans are returned to an accrual status when all of the principal and interest amounts contractually due are brought current and repayment of the remaining contractual principal and interest is expected. A loan may also return to accrual status if additional collateral is received from the borrower and, in the opinion of management, the financial position of the borrower indicates that there is no longer any reasonable doubt as to the collection of the amount contractually due. Payment received on nonaccrual loans are applied first to principal. Once principal is recovered, any remaining payments received are applied to interest income.

The following table presents the amortized cost basis of loans on nonaccrual status and loans on nonaccrual status with no allowance for credit losses recorded by loan segment (in thousands):

	Total Nonaccrual				Nonaccrual with no ACL
	*September 30, 2024*		*December 31, 2023*		*September 30, 2024*		*December 31, 2023*

Real estate - construction	$	62	$	66	$	62	$	66
Real estate - 1 to 4 family residential		500		678		431		563
Real estate - multi-family		2,020		2,034		2,020		2,034
Real estate - commercial		11,343		8,976		11,343		8,976
Real estate - agricultural		1,087		449		1,087		449
Commercial		1,842		268		908		172
Agricultural		634		1,310		598		1,310
Consumer and other		14		13		5		-

	$	17,502	$	13,794	$	16,454	$	13,570

The interest foregone on nonaccrual loans for the three months ended September 30, 2024 and 2023 was approximately $354 thousand and $224 thousand, respectively. The interest foregone on nonaccrual loans for the nine months ended September 30, 2024 and 2023 was approximately $810 thousand and $569 thousand, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty. Loan modifications may include interest rate reductions or below market interest rates, extension of payments terms beyond the original maturity date, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses.

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a loss rate model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification.

The Company made no loan modifications and three loan modifications to borrowers experiencing financial difficulty for the nine months ended September 30, 2024 and 2023, respectively.

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by segment of financing receivable and type of concession granted (in thousands):

*Loan Modifications Made to Borrowers Experiencing Financial Difficulty*

	*Term Extension*
	Amortized Cost Basis at		% of Total Segment of
	September 30, 2023		Financing Receivable
Loan Type
Agricultural	$	415		0.4	%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty for the nine months ended September 30, 2023:

*Term Extension*
Loan Type		*Financial Effect*

Agricultural		Added a weighted-average 7.7 years to the life of loans, which reduced monthly payment amounts for the borrowers

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The Company had no net charge-offs for the three and nine months ended September 30, 2024 and 2023 related to loan modifications to borrowers experiencing financial difficulties.

There were two loan modifications with an amortized cost basis of $42 thousand that had a payment default and were modified in the twelve months before default as of September 30, 2024. A loan is considered to be in payment default once it is 60 days contractually past due under the modified terms.

Aging Analysis. An aging analysis of the recorded investments in loans, on a disaggregated basis, as of September 30, 2024 and December 31, 2023, is as follows (in thousands):

2024			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing

Real estate - construction	$	-	$	63	$	63	$	65,749	$	65,812	$	-
Real estate - 1 to 4 family residential		1,803		69		1,872		295,459		297,331		-
Real estate - multi-family		-		1,232		1,232		200,656		201,888		-
Real estate - commercial		1,322		2,872		4,194		350,879		355,073		-
Real estate - agricultural		40		658		698		157,216		157,914		-
Commercial		1,107		440		1,547		91,987		93,534		-
Agricultural		103		56		159		124,048		124,207		-
Consumer and other		9		5		14		17,100		17,114		-

	$	4,384	$	5,395	$	9,779	$	1,303,094	$	1,312,873	$	-

2023			90 Days								90 Days
	30-89		or Greater		Total						or Greater
	Past Due		Past Due		Past Due		Current		Total		Accruing

Real estate - construction	$	359	$	66	$	425	$	62,625	$	63,050	$	-
Real estate - 1 to 4 family residential		1,020		302		1,322		288,082		289,404		3
Real estate - multi-family		-		983		983		194,553		195,536		-
Real estate - commercial		119		106		225		359,041		359,266		106
Real estate - agricultural		-		-		-		161,517		161,517		-
Commercial		559		98		657		89,072		89,729		-
Agricultural		169		529		698		118,438		119,136		-
Consumer and other		16		-		16		16,524		16,540		-

	$	2,242	$	2,084	$	4,326	$	1,289,852	$	1,294,178	$	109

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk ratings of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in our market areas.

The Company utilizes a risk rating matrix to assign risk ratings to each of its loans. Loans are rated on a scale of 1 to 7. A description of the general characteristics of the risk ratings is as follows:

Ratings 1, 2 and 3 - These ratings include “Pass” loans of average to excellent credit quality borrowers. These borrowers generally have significant capital strength, moderate leverage and stable earnings and growth commensurate to their relative risk rating. These ratings are reviewed at least annually. These ratings also include performing loans of less than $100,000.

Rating 4 - This rating includes loans on management’s “watch list” and is intended to be utilized for pass rated borrowers where credit quality has begun to show signs of financial weakness that now requires management’s heightened attention. This rating is reviewed at least quarterly.

Rating 5 - This rating is for “Special Mention” loans in accordance with regulatory guidelines. This rating is intended to be temporary and includes loans to borrowers whose credit quality has clearly deteriorated and are at risk of further decline unless active measures are taken to correct the situation. This rating is reviewed at least quarterly.

Rating 6 - This rating includes “Substandard” loans in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Under regulatory guideline definitions, a “Substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. This rating is reviewed at least quarterly.

Rating 7 - This rating includes “Substandard-Impaired” loans in accordance with regulatory guidelines, for which the accrual of interest has generally been stopped. This rating includes loans: (i) where interest is more than 90 days past due, (ii) not fully secured, (iii) where a specific valuation allowance may be necessary, or (iv) where the borrower is unable to make contractual principal and interest payments. This rating is reviewed at least quarterly.

The following tables show the risk category of loans by loan segment and year of origination as of September 30, 2024 and December 31, 2023 (in thousands):

September 30, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Real estate - construction
Pass	$	24,540	$	26,115	$	12,647	$	234	$	11	$	200	$	1,261	$	65,008
Watch		-		742		-		-		-		-		-		742
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard-Impaired		62		-		-		-		-		-		-		62
Total	$	24,602	$	26,857	$	12,647	$	234	$	11	$	200	$	1,261	$	65,812

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

Real estate - 1-4 family residential
Pass	$	36,288	$	45,667	$	60,482	$	54,509	$	43,266	$	20,461	$	20,241	$	280,914
Watch		745		1,223		-		9,962		756		314		96		13,096
Special Mention		-		-		640		-		292		-		-		932
Substandard		-		442		-		1,310		46		91		-		1,889
Substandard-Impaired		373		-		-		69		-		58		-		500
Total	$	37,406	$	47,332	$	61,122	$	65,850	$	44,360	$	20,924	$	20,337	$	297,331

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

Real estate - multi-family
Pass	$	12,386	$	19,421	$	50,701	$	32,524	$	37,426	$	12,783	$	5,700	$	170,941
Watch		6,568		-		-		20,135		-		-		-		26,703
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		2,225		-		-		2,225
Substandard-Impaired		787		983		-		-		-		249		-		2,019
Total	$	19,741	$	20,404	$	50,701	$	52,659	$	39,651	$	13,032	$	5,700	$	201,888

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

Real estate - commercial
Pass	$	26,710	$	29,687	$	74,840	$	51,977	$	66,679	$	30,193	$	4,689	$	284,775
Watch		3,106		8,149		14,286		5,622		5,351		630		917		38,061
Special Mention		-		-		-		-		2,921		-		-		2,921
Substandard		-		835		-		16,119		-		1,018		-		17,972
Substandard-Impaired		-		7,944		2,518		-		527		355		-		11,344
Total	$	29,816	$	46,615	$	91,644	$	73,718	$	75,478	$	32,196	$	5,606	$	355,073

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

Real estate - agricultural
Pass	$	16,168	$	17,718	$	28,422	$	30,027	$	22,734	$	23,396	$	2,355	$	140,820
Watch		343		4,204		375		1,551		2,482		3,554		-		12,509
Special Mention		-		-		-		-		-		-		-		-
Substandard		1,414		2,276		-		92		-		-		-		3,782
Substandard-Impaired		-		-		-		803		-		-		-		803
Total	$	17,925	$	24,198	$	28,797	$	32,473	$	25,216	$	26,950	$	2,355	$	157,914

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

September 30, 2024	Amortized Cost Basis of Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Commercial
Pass	$	13,542	$	11,659	$	11,093	$	8,225	$	1,611	$	3,331	$	30,061	$	79,522
Watch		746		6,961		233		14		272		157		2,560		10,943
Special Mention		-		-		-		-		-		-		-		-
Substandard		1,199		-		28		-		-		-		-		1,227
Substandard-Impaired		387		47		-		1		500		67		840		1,842
Total	$	15,874	$	18,667	$	11,354	$	8,240	$	2,383	$	3,555	$	33,461	$	93,534

Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	7	$	-	$	7

Agricultural
Pass	$	9,520	$	6,967	$	5,657	$	4,129	$	1,783	$	733	$	78,923	$	107,712
Watch		2,080		567		348		322		363		186		11,079		14,945
Special Mention		-		-		-		-		-		-		-		-
Substandard		1,159		23		-		-		37		-		-		1,219
Substandard-Impaired		-		89		-		222		-		-		20		331
Total	$	12,759	$	7,646	$	6,005	$	4,673	$	2,183	$	919	$	90,022	$	124,207

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

Consumer and other
Pass	$	4,915	$	4,857	$	2,667	$	2,090	$	1,711	$	779	$	69	$	17,088
Watch		14		-		-		-		-		-		-		14
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard-Impaired		-		1		2		-		9		-		-		12
Total	$	4,929	$	4,858	$	2,669	$	2,090	$	1,720	$	779	$	69	$	17,114

Current-period gross charge-offs	$	6	$	-	$	-	$	-	$	-	$	3	$	-	$	9

Total loans
Pass	$	144,069	$	162,091	$	246,509	$	183,715	$	175,221	$	91,876	$	143,299	$	1,146,780
Watch		13,602		21,846		15,242		37,606		9,224		4,841		14,652		117,013
Special Mention		-		-		640		-		3,213		-		-		3,853
Substandard		3,772		3,576		28		17,521		2,308		1,109		-		28,314
Substandard-Impaired		1,609		9,064		2,520		1,095		1,036		729		860		16,913
Total	$	163,052	$	196,577	$	264,939	$	239,937	$	191,002	$	98,555	$	158,811	$	1,312,873

Current-period gross charge-offs	$	6	$	-	$	-	$	-	$	-	$	10	$	-	$	16

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Real estate - construction
Pass	$	45,404	$	14,501	$	746	$	11	$	-	$	325	$	1,917	$	62,904
Watch		80		-		-		-		-		-		-		80
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Substandard-Impaired		-		66		-		-		-		-		-		66
Total	$	45,484	$	14,567	$	746	$	11	$	-	$	325	$	1,917	$	63,050

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

Real estate - 1-4 family residential
Pass	$	55,051	$	66,190	$	59,250	$	47,865	$	8,607	$	17,154	$	18,649	$	272,766
Watch		1,608		298		10,483		1,226		-		358		27		14,000
Special Mention		-		-		-		-		-		-		-		-
Substandard		448		18		1,350		47		33		64		-		1,960
Substandard-Impaired		115		-		140		-		199		144		80		678
Total	$	57,222	$	66,506	$	71,223	$	49,138	$	8,839	$	17,720	$	18,756	$	289,404

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

Real estate - multi-family
Pass	$	18,436	$	51,928	$	47,161	$	40,201	$	13,542	$	694	$	5,020	$	176,982
Watch		4,603		1,427		8,192		-		-		-		-		14,222
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		2,298		-		-		-		2,298
Substandard-Impaired		983		-		-		-		1,051		-		-		2,034
Total	$	24,022	$	53,355	$	55,353	$	42,499	$	14,593	$	694	$	5,020	$	195,536

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

Real estate - commercial
Pass	$	35,133	$	81,342	$	51,598	$	66,467	$	20,006	$	13,122	$	2,929	$	270,597
Watch		8,379		13,580		14,669		14,607		78		583		2,988		54,884
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		897		-		4,822		551		-		106		-		6,376
Substandard-Impaired		8,517		-		99		-		360		-		-		8,976
Total	$	52,926	$	97,453	$	83,041	$	84,631	$	21,487	$	13,811	$	5,917	$	359,266

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

Real estate - agricultural
Pass	$	22,469	$	30,738	$	32,893	$	27,733	$	6,039	$	22,850	$	2,073	$	144,795
Watch		4,163		379		2,263		1,760		333		3,601		-		12,499
Special Mention		-		-		-		-		-		-		-		-
Substandard		2,302		1,439		114		-		-		214		-		4,069
Substandard-Impaired		-		-		154		-		-		-		-		154
Total	$	28,934	$	32,556	$	35,424	$	29,493	$	6,372	$	26,665	$	2,073	$	161,517

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

December 31, 2023	Amortized Cost Basis of Term Loans by Year of Origination
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Commercial
Pass	$	23,904	$	12,645	$	10,378	$	2,087	$	2,434	$	1,578	$	29,752	$	82,778
Watch		860		295		119		423		93		137		1,996		3,923
Special Mention		-		-		-		-		-		-		-		-
Substandard		600		256		-		421		-		-		1,484		2,761
Substandard-Impaired		94		-		5		96		-		72		-		267
Total	$	25,458	$	13,196	$	10,502	$	3,027	$	2,527	$	1,787	$	33,232	$	89,729

Current-period gross charge-offs	$	-	$	-	$	-	$	33	$	-	$	4	$	-	$	37

Agricultural
Pass	$	14,614	$	8,395	$	5,459	$	2,858	$	400	$	608	$	77,448	$	109,782
Watch		1,107		340		288		18		18		194		5,419		7,384
Special Mention		-		-		-		-		-		-		-		-
Substandard		866		14		25		58		-		-		-		963
Substandard-Impaired		95		140		383		-		-		-		389		1,007
Total	$	16,682	$	8,889	$	6,155	$	2,934	$	418	$	802	$	83,256	$	119,136

Current-period gross charge-offs	$	39	$	74	$	90	$	-	$	-	$	-	$	-	$	203

Consumer and other
Pass	$	6,801	$	3,719	$	2,701	$	2,071	$	352	$	731	$	15	$	16,390
Watch		127		-		-		-		-		-		-		127
Special Mention		-		-		-		-		-		-		-		-
Substandard		10		-		-		-		-		-		-		10
Substandard-Impaired		-		-		-		13		-		-		-		13
Total	$	6,938	$	3,719	$	2,701	$	2,084	$	352	$	731	$	15	$	16,540

Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	5	$	-	$	5

Total loans
Pass	$	221,812	$	269,458	$	210,186	$	189,293	$	51,380	$	57,062	$	137,803	$	1,136,994
Watch		20,927		16,319		36,014		18,034		522		4,873		10,430		107,119
Special Mention		-		2,531		11,853		3,006		1,043		-		-		18,433
Substandard		5,123		1,727		6,311		3,375		33		384		1,484		18,437
Substandard-Impaired		9,804		206		781		109		1,610		216		469		13,195
Total	$	257,666	$	290,241	$	265,145	$	213,817	$	54,588	$	62,535	$	150,186	$	1,294,178

Current-period gross charge-offs	$	39	$	74	$	90	$	33	$	-	$	9	$	-	$	245