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LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Major Classifications of Loans
Loans by classes within portfolio segments were as follows:
December 31, 2022December 31, 2021
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$640,816 $578,395 
Agricultural real estate69,431 52,372 
Multi-family real estate205,601 174,050 
Construction and land development101,681 78,613 
C&I/Agricultural operating:
Commercial and industrial127,115 107,937 
Agricultural operating23,124 26,202 
Residential mortgage:
Residential mortgage84,783 63,855 
Purchased HELOC loans3,262 3,871 
Consumer installment:
Originated indirect paper10,236 15,971 
Other Consumer6,894 8,473 
Total originated loans before SBA PPP loans$1,272,943 $1,109,739 
SBA PPP loans— 8,755 
Total originated loans$1,272,943 $1,118,494 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$85,155 $120,070 
Agricultural real estate18,477 26,123 
Multi-family real estate3,307 4,299 
Construction and land development811 907 
C&I/Agricultural operating:
Commercial and industrial8,898 14,230 
Agricultural operating5,682 5,386 
Residential mortgage:
Residential mortgage20,606 27,135 
Consumer installment:
Other Consumer256 401 
Total acquired loans$143,192 $198,551 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$725,971 $698,465 
Agricultural real estate87,908 78,495 
Multi-family real estate208,908 178,349 
Construction and land development102,492 79,520 
C&I/Agricultural operating:
Commercial and industrial136,013 122,167 
Agricultural operating28,806 31,588 
Residential mortgage:
Residential mortgage105,389 90,990 
Purchased HELOC loans3,262 3,871 
Consumer installment:
Originated indirect paper10,236 15,971 
Other Consumer7,150 8,874 
Total loans before SBA PPP loans$1,416,135 $1,308,290 
SBA PPP loans— 8,755 
Gross loans$1,416,135 $1,317,045 
Less:
Unearned net deferred fees and costs and loans in process(2,585)(2,482)
Unamortized discount on acquired loans(1,766)(3,600)
Allowance for loan losses(17,939)(16,913)
Loans receivable, net$1,393,845 $1,294,050 
Schedule of Loans by Risk Rating
Below is a breakdown of loans by risk rating as of December 31, 2022:
1 to 56789TOTAL
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$628,999 $5,771 $6,046 $— $— $640,816 
Agricultural real estate67,248 549 1,634 — — 69,431 
Multi-family real estate205,601 — — — — 205,601 
Construction and land development101,681 — — — — 101,681 
C&I/Agricultural operating:
Commercial and industrial120,882 5,526 707 — — 127,115 
Agricultural operating20,896 324 1,904 — — 23,124 
Residential mortgage:
Residential mortgage82,236 — 2,547 — — 84,783 
Purchased HELOC loans3,262 — — — — 3,262 
Consumer installment:
Originated indirect paper10,190 — 46 — — 10,236 
Other Consumer6,878 — 16 — — 6,894 
Total originated loans before SBA PPP loans1,247,873 12,170 12,900 — — 1,272,943 
SBA PPP loans— — — — — — 
Total originated loans$1,247,873 $12,170 $12,900 $— $— $1,272,943 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$83,659 $— $1,496 $— $— $85,155 
Agricultural real estate16,967 — 1,510 — — 18,477 
Multi-family real estate3,307 — — — — 3,307 
Construction and land development704 — 107 — — 811 
C&I/Agricultural operating:
Commercial and industrial8,866 — 32 — — 8,898 
Agricultural operating5,522 — 160 — — 5,682 
Residential mortgage:
Residential mortgage19,494 — 1,112 — — 20,606 
Consumer installment:
Other Consumer254 — 2 — — 256 
Total acquired loans$138,773 $— $4,419 $— $— $143,192 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$712,658 $5,771 $7,542 $— $— $725,971 
Agricultural real estate84,215 549 3,144 — — 87,908 
Multi-family real estate208,908 — — — — 208,908 
Construction and land development102,385 — 107 — — 102,492 
C&I/Agricultural operating:
Commercial and industrial129,748 5,526 739 — — 136,013 
Agricultural operating26,418 324 2,064 — — 28,806 
Residential mortgage:
Residential mortgage101,730 — 3,659 — — 105,389 
Purchased HELOC loans3,262 — — — — 3,262 
Consumer installment:
Originated indirect paper10,190 — 46 — — 10,236 
Other Consumer7,132 — 18 — — 7,150 
Gross loans before SBA PPP loans$1,386,646 $12,170 $17,319 $— $— $1,416,135 
SBA PPP loans— — — — — — 
Gross loans$1,386,646 $12,170 $17,319 $— $— 1,416,135 
Less:
Unearned net deferred fees and costs and loans in process(2,585)
Unamortized discount on acquired loans(1,766)
Allowance for loan losses(17,939)
Loans receivable, net$1,393,845 
Below is a breakdown of loans by risk rating as of December 31, 2021:
1 to 56789TOTAL
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate$572,724 $667 $5,004 $— $— $578,395 
Agricultural real estate50,834 1,267 271 — — 52,372 
Multi-family real estate173,760 290 — — — 174,050 
Construction and land development75,146 — 3,467 — — 78,613 
C&I/Agricultural operating:
Commercial and industrial107,798 57 82 — — 107,937 
Agricultural operating23,935 764 1,503 — — 26,202 
Residential mortgage:
Residential mortgage60,754 — 3,101 — — 63,855 
Purchased HELOC loans3,706 — 165 — — 3,871 
Consumer installment:
Originated indirect paper15,818 — 153 — — 15,971 
Other Consumer8,404 — 69 — — 8,473 
Total originated loans before SBA PPP loans1,092,879 3,045 13,815 — — 1,109,739 
SBA PPP loans8,755 — — — — 8,755 
Total originated loans$1,101,634 $3,045 $13,815 $— $— $1,118,494 
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate$116,839 $1,314 $1,917 $— $— $120,070 
Agricultural real estate21,051 — 5,072 — — 26,123 
Multi-family real estate4,299 — — — — 4,299 
Construction and land development735 172 — — — 907 
C&I/Agricultural operating:
Commercial and industrial13,931 5 294 — — 14,230 
Agricultural operating4,936 — 450 — — 5,386 
Residential mortgage:
Residential mortgage25,869 — 1,266 — — 27,135 
Consumer installment:
Other Consumer398 — 3 — — 401 
Total acquired loans$188,058 $1,491 $9,002 $— $— $198,551 
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate$689,563 $1,981 $6,921 $— $— $698,465 
Agricultural real estate71,885 1,267 5,343 — — 78,495 
Multi-family real estate178,059 290 — — — 178,349 
Construction and land development75,881 172 3,467 — — 79,520 
C&I/Agricultural operating:
Commercial and industrial121,729 62 376 — — 122,167 
Agricultural operating28,871 764 1,953 — — 31,588 
Residential mortgage:
Residential mortgage86,623 — 4,367 — — 90,990 
Purchased HELOC loans3,706 — 165 — — 3,871 
Consumer installment:
Originated indirect paper15,818 — 153 — — 15,971 
Other Consumer8,802 — 72 — — 8,874 
Gross loans before SBA PPP loans$1,280,937 $4,536 $22,817 $— $— $1,308,290 
SBA PPP loans8,755 — — — — 8,755 
Gross loans$1,289,692 $4,536 $22,817 $— $— 1,317,045 
Less:
Unearned net deferred fees and costs and loans in process(2,482)
Unamortized discount on acquired loans(3,600)
Allowance for loan losses(16,913)
Loans receivable, net$1,294,050 
Schedule of Changes in Loans A summary of the changes in those loans is as follows:
Twelve months endedTwelve months ended
 December 31, 2022December 31, 2021
Balance—beginning of period$32,423 $26,483 
New loan originations7,994 14,992 
Repayments(2,007)(9,052)
Balance—end of period$38,410 $32,423 
Available and unused lines of credit$— $75 
Schedule of Changes in Specific Component on Impaired Loans and General Component for Non-Impaired Loans
Changes in the ALL by loan type for the periods presented below were as follows:
Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentUnallocatedTotal
Twelve months ended December 31, 2022:
Allowance for Loan Losses:
Beginning balance, January 1, 2022$12,354 $1,959 $518 $225 $774 $15,830 
Charge-offs(157)(310)(35)(45)— (547)
Recoveries74 35 2 50 — 161 
Provision1,280 571 89 (109)34 1,865 
Total Allowance on originated loans13,551 2,255 574 121 808 17,309 
Other acquired loans:
Beginning balance, January 1, 2022856 69 130 28 — 1,083 
Charge-offs(48)(36)(33)(3)— (120)
Recoveries28 1 27 1 — 57 
Provision(302)29 (99)(18)— (390)
Total allowance on other acquired loans534 63 25 8 — 630 
Total allowance on acquired loans534 63 25 8 — 630 
Ending Balance, December 31, 2022$14,085 $2,318 $599 $129 $808 $17,939 
Allowance for Loan Losses at December 31, 2022:
Amount of allowance for loan losses arising from loans individually evaluated for impairment$519 $249 $48 $10 $— $826 
Amount of allowance for loan losses arising from loans collectively evaluated for impairment$13,566 $2,069 $551 $119 $808 $17,113 
Loans Receivable as of December 31, 2022:
Ending balance of originated loans$1,017,529 $150,239 $88,045 $17,130 $— $1,272,943 
Ending balance of purchased credit-impaired loans5,748 362 890 — — 7,000 
Ending balance of other acquired loans102,002 14,218 19,716 256 — 136,192 
Ending balance of loans$1,125,279 $164,819 $108,651 $17,386 $— $1,416,135 
Ending balance: individually evaluated for impairment$16,874 $3,292 $5,998 $755 $— $26,919 
Ending balance: collectively evaluated for impairment$1,108,405 $161,527 $102,653 $16,631 $— $1,389,216 
Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentUnallocatedTotal
Twelve months ended December 31, 2021:
Allowance for Loan Losses:
Beginning balance, January 1, 2021$10,271 $2,112 $1,041 $489 $906 $14,819 
Charge-offs(51)— — (54)— (105)
Recoveries14 110 9 41 — 174 
Provision2,120 (263)(532)(251)(132)942 
Total Allowance on originated loans12,354 1,959 518 225 774 15,830 
Other acquired loans:
Beginning balance, January 1, 20211,684 141 335 64 — 2,224 
Charge-offs(200)(7)— (27)— (234)
Recoveries14 13 4 4 — 35 
Provision(642)(78)(209)(13)— (942)
Total Allowance on other acquired loans856 69 130 28 — 1,083 
Total Allowance on acquired loans856 69 130 28 — 1,083 
Ending balance, December 31, 2021$13,210 $2,028 $648 $253 $774 $16,913 
Allowance for Loan Losses at December 31, 2021:
Amount of allowance for loan losses arising from loans individually evaluated for impairment$797 $99 $113 $— $— $1,009 
Amount of allowance for loan losses arising from loans collectively evaluated for impairment$12,413 $1,929 $535 $253 $774 $15,904 
Loans Receivable as of December 31, 2021:
Ending balance of originated loans$883,430 $142,894 $67,726 $24,444 $— $1,118,494 
Ending balance of purchased credit-impaired loans9,060 1,101 1,044 — — 11,205 
Ending balance of other acquired loans142,339 18,515 26,091 401 — 187,346 
Ending balance of loans$1,034,829 $162,510 $94,861 $24,845 $— $1,317,045 
Ending balance: individually evaluated for impairment$21,792 $3,337 $7,007 $257 $— $32,393 
Ending balance: collectively evaluated for impairment$1,013,037 $159,173 $87,854 $24,588 $— $1,284,652 
Schedule of Loans Receivable
Loans receivable by loan type as of the end of the periods shown below were as follows:
 Commercial/Agricultural Real Estate LoansC&I/Agricultural operatingResidential MortgageConsumer InstallmentTotals
Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,Dec 31,
 2022202120222021202220212022202120222021
Performing loans
Performing TDR loans$1,336 $4,618 $960 $649 $2,875 $2,681 $— $36 $5,171 $7,984 
Performing loans other1,115,465 1,021,346 162,417 160,570 104,287 90,591 17,345 24,729 1,399,514 1,297,236 
Total performing loans1,116,801 1,025,964 163,377 161,219 107,162 93,272 17,345 24,765 1,404,685 1,305,220 
Nonperforming loans (1)
Nonperforming TDR loans1,878 3,389 391 554 348 593 — 3 2,617 4,539 
Nonperforming loans other6,600 5,476 1,051 737 1,141 996 41 77 8,833 7,286 
Total nonperforming loans8,478 8,865 1,442 1,291 1,489 1,589 41 80 11,450 11,825 
Total loans$1,125,279 $1,034,829 $164,819 $162,510 $108,651 $94,861 $17,386 $24,845 $1,416,135 $1,317,045 
(1)Nonperforming loans are either 90+ days past due or nonaccrual.
Schedule of Aging Analysis of Bank Real Estate and Consumer Loans
An aging analysis of the Company’s commercial/agricultural real estate and non-real estate, consumer real estate and non-real estate and purchased third party loans as of December 31, 2022 and 2021, respectively, was as follows:
30-59 Days Past Due and Accruing60-89 Days Past Due and AccruingGreater Than 89 Days Past Due and AccruingTotal Past Due AccruingNonaccrual LoansTotal Past Due Accruing and Nonaccrual LoansCurrentTotal Loans
December 31, 2022
Commercial/Agricultural real estate:
Commercial real estate$202 $88 $— $290 $5,736 $6,026 $719,945 $725,971 
Agricultural real estate4,992 — — 4,992 2,742 7,734 80,174 87,908 
Multi-family real estate— — — — — — 208,908 208,908 
Construction and land development3,975 — — 3,975 — 3,975 98,517 102,492 
C&I/Agricultural operating:
Commercial and industrial— 26 — 26 552 578 135,435 136,013 
SBA PPP loans— — — — — — — — 
Agricultural operating826 — — 826 890 1,716 27,090 28,806 
Residential mortgage:
Residential mortgage767 479 236 1,482 1,253 2,735 102,654 105,389 
Purchased HELOC loans— — — — — — 3,262 3,262 
Consumer installment:
Originated indirect paper15 — — 15 27 42 10,194 10,236 
Other Consumer39 2 10 51 4 55 7,095 7,150 
Total$10,816 $595 $246 $11,657 $11,204 $22,861 $1,393,274 $1,416,135 
December 31, 2021
Commercial/Agricultural real estate:
Commercial real estate$36 $— $— $36 $5,374 $5,410 $693,055 $698,465 
Agricultural real estate498 4 — 502 3,490 3,992 74,503 78,495 
Multi-family real estate— — — — — — 178,349 178,349 
Construction and land development— — — — — — 79,520 79,520 
C&I/Agricultural operating:
Commercial and industrial— 32 — 32 298 330 121,837 122,167 
SBA PPP loans— — — — — — 8,7558,755 
Agricultural operating1,123 — — 1,123 993 2,116 29,47231,588 
Residential mortgage:
Residential mortgage1,471 487 156 2,114 1,268 3,382 87,60890,990
Purchased HELOC loans117 — — 117 165 282 3,5893,871
Consumer installment:
Originated indirect paper38 27 — 65 55 120 15,85115,971
Other Consumer58 10 4 72 22 94 8,7808,874
Total$3,341 $560 $160 $4,061 $11,665 $15,726 $1,301,319 $1,317,045 
Schedule of Bank Impaired Loans
A summary of loans evaluated for impairment as of December 31, 2022 was as follows:
 Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
December 31, 2022
With No Related Allowance Recorded:
Commercial/Agricultural real estate$9,741 $9,766 $— $13,657 $549 
C&I/Agricultural operating2,744 2,754 — 4,467 200 
Residential mortgage5,846 5,907 — 6,304 276 
Consumer installment745 745 — 307 5 
Total$19,076 $19,172 $— $24,735 $1,030 
With An Allowance Recorded:
Commercial/Agricultural real estate$7,108 $7,108 $519 $6,028 $273 
C&I/Agricultural operating538 538 249 273 48 
Residential mortgage91 91 48 298 65 
Consumer installment10 10 10 2 2 
Total$7,747 $7,747 $826 $6,601 $388 
December 31, 2022 Totals
Commercial/Agricultural real estate$16,849 $16,874 $519 $19,685 $822 
C&I/Agricultural operating3,282 3,292 249 4,741 248 
Residential mortgage5,937 5,998 48 6,603 341 
Consumer installment755 755 10 310 7 
Total$26,823 $26,919 $826 $31,336 $1,418 
A summary of loans evaluated for impairment as of December 31, 2021 was as follows:
 Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
December 31, 2021
With No Related Allowance Recorded:
Commercial/Agricultural real estate$15,521 $15,905 $— $19,412 $964 
C&I/Agricultural operating3,153 3,337 — 4,622 146 
Residential mortgage6,221 6,306 — 7,316 316 
Consumer installment256 256 — 306 85 
Total$25,151 $25,804 $— $31,656 $1,511 
With An Allowance Recorded:
Commercial/Agricultural real estate$5,887 $5,887 $797 $4,089 $62 
C&I/Agricultural operating— — 99 391 84 
Residential mortgage701 701 113 890 17 
Consumer installment1 1 — 2 — 
Total$6,589 $6,589 $1,009 $5,372 $163 
December 31, 2021 Totals
Commercial/Agricultural real estate$21,408 $21,792 $797 $23,501 $1,026 
C&I/Agricultural operating3,153 3,337 99 5,013 230 
Residential mortgage6,922 7,007 113 8,206 333 
Consumer installment257 257 — 308 85 
Total$31,740 $32,393 $1,009 $37,028 $1,674 
Schedule of Troubled Debt Restructuring, Loans by Accrual Status
Following is a summary of TDR loans by accrual status as of December 31, 2022 and December 31, 2021.
 December 31December 31
 20222021
Troubled debt restructure loans:
Accrual status$5,171 $7,984 
Non-accrual status2,617 4,539 
Total$7,788 $12,523 
Schedule of Troubled Debt Restructuring
The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the years ended December 31, 2022 and December 31, 2021:
Number of ContractsModified RateModified PaymentModified Under- writingOtherPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentSpecific Reserve
Twelve months ended December 31, 2022
TDRs:
Commercial/Agricultural real estate7 $1,241 $— $1,964 $— $3,205 $3,205 $— 
C&I/Agricultural operating5 1,424 — 736 — 2,160 2,160 — 
Residential mortgage11 116 147 507 — 770 770 — 
Consumer installment— — — — — — — — 
Totals23 $2,781 $147 $3,207 $— $6,135 $6,135 $— 


Number of ContractsModified RateModified PaymentModified Under- writingOtherPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentSpecific Reserve
Twelve months ended December 31, 2021
TDRs:
Commercial/Agricultural real estate3 $39 $81 $— $— $120 $120 $— 
C&I/Agricultural operating1 — — 240 — 240 240 — 
Residential mortgage8 252 295 202 — 749 749 — 
Consumer installment3 6 — 18 — 24 24 — 
Totals15 $297 $376 $460 $— $1,133 $1,133 $— 
Schedule of Loans by Loan Class Modified in Troubled Debt Restructuring
A summary of loans by loan class modified in a troubled debt restructuring as of December 31, 2022 and December 31, 2021:
 December 31, 2022December 31, 2021
 Number of
Modifications		Recorded
Investment		Number of
Modifications		Recorded
Investment
Troubled debt restructurings:
Commercial/Agricultural real estate14 $3,214 19 $8,007 
C&I/Agricultural operating8 1,351 7 1,203 
Residential mortgage45 3,223 43 3,274 
Consumer installment— — 7 39 
Total loans67 $7,788 76 $12,523 
Schedule of Restructured Loans in Default
The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the years ended December 31, 2022 and December 31, 2021, as well as the recorded investment in these restructured loans as of December 31, 2022 and December 31, 2021:
 December 31, 2022December 31, 2021
 Number of
Modifications		Recorded
Investment		Number of
Modifications		Recorded
Investment
Troubled debt restructurings:
Commercial/Agricultural real estate— $— — $— 
C&I/Agricultural operating1 231 — — 
Residential mortgage2 40 — — 
Consumer installment— — 1 3 
Total troubled debt restructurings3 $271 1 $3 
Schedule of Acquired Loans The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:
December 31, 2022December 31, 2021
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance$7,000 $11,205 
Carrying amount$6,904 $10,552 
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance$136,192 $187,346 
Carrying amount$134,522 $184,399 
Total acquired loans
Outstanding balance$143,192 $198,551 
Carrying amount$141,426 $194,951 
Schedule of Accelerate Accretion and Lower Future Years Accretion
The table below shows scheduled accretion by year for the accretable difference recognized due to fair value purchase accounting on recent whole bank acquisitions. In addition, the table below includes $1,165 of accretable discount from purchased impaired loans with the original non-accretable discount transferred to accretable discount. The accretion on this balance is scheduled to be approximately $80 in 2023; however, large balance payoffs, as seen in 2022, 2021 and 2020, would accelerate this accretion and lower future years accretion.

Fiscal years ending December 31,Purchase Accounting Accretable Discount
2023$363 
2024215 
2025180 
202684 
202777 
Thereafter751 
Total$1,670 
Schedule of Non-Accretable Yield The following table provides changes in non-accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:     
 December 31, 2022December 31, 2021
Balance at beginning of period$653 $1,087 
Additions to non-accretable difference for acquired purchased credit impaired loans— — 
Non-accretable difference realized as interest from payoffs of purchased credit impaired loans(239)(105)
Transfers from non-accretable difference to accretable discount(126)(329)
Non-accretable difference transferred to OREO due to loan foreclosure(192)— 
Balance at end of period$96 $653