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Loans and Allowance for Credit Losses | 9 Months Ended
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Sep. 30, 2023
Receivables [Abstract] |
Loans and Allowance for Credit Losses | 4. Loans and Allowance for Credit Losses Loans consisted of the following as of the dates indicated below: Schedule of Loans
|  | September 30, |  |  | December 31, |
(Dollars in thousands) |  | 2023 |  |  | 2022 |
One-to-four family residential real estate loans |  | $ | 289,571 |  |  | $ | 236,982 |
Construction and land loans |  |  | 21,657 |  |  |  | 22,725 |
Commercial real estate loans |  |  | 323,427 |  |  |  | 304,074 |
Commercial loans |  |  | 185,831 |  |  |  | 173,415 |
Paycheck protection program loans |  |  | - |  |  |  | 21 |
Agriculture loans |  |  | 84,560 |  |  |  | 84,283 |
Municipal loans |  |  | 3,200 |  |  |  | 2,026 |
Consumer loans |  |  | 29,180 |  |  |  | 26,664 |
Total gross loans |  |  | 937,426 |  |  |  | 850,190 |
Net deferred loan fees and loans in process |  |  | (396 | ) |  |  | (250 | )
Allowance for credit losses |  |  | (10,970 | ) |  |  | (8,791 | )
Loans, net |  | $ | 926,060 |  |  | $ | 841,149 |
The following tables provide information on the Company’s allowance for credit losses by loan class and allowance methodology: Schedule of Allowance for Credit Losses on Financing Receivables
|  | Three and nine months ended September 30, 2023 |
(Dollars in thousands) |  | One-to-four family residential real estate loans |  |  | Construction and land loans |  |  | Commercial real estate loans |  |  | Commercial loans |  |  | Paycheck protection program loans |  |  | Agriculture loans |  |  | Municipal loans |  |  | Consumer loans |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at July 1, 2023 |  | $ | 1,852 |  |  | $ | 161 |  |  | $ | 4,373 |  |  | $ | 2,710 |  |  | $ | - |  |  | $ | 1,134 |  |  | $ | 16 |  |  | $ | 203 |  |  | $ | 10,449 |
Charge-offs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (44 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (98 | ) |  |  | (142 | )
Recoveries |  |  | - |  |  |  | 626 |  |  |  | - |  |  |  | 9 |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | 27 |  |  |  | 663 |
Provision for credit losses |  |  | 38 |  |  |  | (641 | ) |  |  | 81 |  |  |  | 469 |  |  |  | - |  |  |  | (45 | ) |  |  | (1 | ) |  |  | 99 |  |  |  | - |
Impact of adopting ASC 326 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Balance at September 30, 2023 |  | $ | 1,890 |  |  | $ | 146 |  |  | $ | 4,454 |  |  | $ | 3,144 |  |  | $ | - |  |  | $ | 1,090 |  |  | $ | 15 |  |  | $ | 231 |  |  | $ | 10,970 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2023 |  | $ | 655 |  |  | $ | 117 |  |  | $ | 3,158 |  |  | $ | 2,753 |  |  | $ | - |  |  | $ | 1,966 |  |  | $ | 5 |  |  | $ | 137 |  |  | $ | 8,791 |
Impact of adopting ASC 326 |  |  | 1,022 |  |  |  | 49 |  |  |  | 1,063 |  |  |  | 145 |  |  |  | - |  |  |  | (824 | ) |  |  | 11 |  |  |  | 57 |  |  |  | 1,523 |
Charge-offs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (151 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (257 | ) |  |  | (408 | )
Recoveries |  |  | - |  |  |  | 626 |  |  |  | - |  |  |  | 28 |  |  |  | - |  |  |  | 74 |  |  |  | - |  |  |  | 86 |  |  |  | 814 |
Provision for credit losses |  |  | 213 |  |  |  | (646 | ) |  |  | 233 |  |  |  | 369 |  |  |  | - |  |  |  | (126 | ) |  |  | (1 | ) |  |  | 208 |  |  |  | 250 |
Balance at September 30, 2023 |  | $ | 1,890 |  |  | $ | 146 |  |  | $ | 4,454 |  |  | $ | 3,144 |  |  | $ | - |  |  | $ | 1,090 |  |  | $ | 15 |  |  | $ | 231 |  |  | $ | 10,970 |
|  | Three and nine months ended September 30, 2022 |
(Dollars in thousands) |  | One-to-four family residential real estate loans |  |  | Construction and land loans |  |  | Commercial real estate loans |  |  | Commercial loans |  |  | Paycheck protection program loans |  |  | Agriculture loans |  |  | Municipal loans |  |  | Consumer loans |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at July 1, 2022 |  | $ | 580 |  |  | $ | 133 |  |  | $ | 2,982 |  |  | $ | 2,651 |  |  | $ | - |  |  | $ | 1,820 |  |  | $ | 6 |  |  | $ | 143 |  |  | $ | 8,315 |
Charge-offs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (106 | ) |  |  | (106 | )
Recoveries |  |  | - |  |  |  | 65 |  |  |  | - |  |  |  | 5 |  |  |  | - |  |  |  | 56 |  |  |  | - |  |  |  | 23 |  |  |  | 149 |
Provision for credit losses |  |  | 25 |  |  |  | (92 | ) |  |  | 216 |  |  |  | 146 |  |  |  | - |  |  |  | 130 |  |  |  | (1 | ) |  |  | 76 |  |  |  | 500 |
Balance at September 30, 2022 |  | $ | 605 |  |  | $ | 106 |  |  | $ | 3,198 |  |  | $ | 2,802 |  |  | $ | - |  |  | $ | 2,006 |  |  | $ | 5 |  |  | $ | 136 |  |  | $ | 8,858 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2022 |  | $ | 623 |  |  | $ | 138 |  |  | $ | 3,051 |  |  | $ | 2,613 |  |  | $ | - |  |  | $ | 2,221 |  |  | $ | 6 |  |  | $ | 123 |  |  | $ | 8,775 |
Balance |  | $ | 623 |  |  | $ | 138 |  |  | $ | 3,051 |  |  | $ | 2,613 |  |  | $ | - |  |  | $ | 2,221 |  |  | $ | 6 |  |  | $ | 123 |  |  | $ | 8,775 |
Charge-offs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (235 | ) |  |  | (235 | )
Recoveries |  |  | - |  |  |  | 165 |  |  |  | - |  |  |  | 28 |  |  |  | - |  |  |  | 59 |  |  |  | 6 |  |  |  | 60 |  |  |  | 318 |
Provision for credit losses |  |  | (18 | ) |  |  | (197 | ) |  |  | 147 |  |  |  | 161 |  |  |  | - |  |  |  | (274 | ) |  |  | (7 | ) |  |  | 188 |  |  |  | - |
Balance at September 30, 2022 |  | $ | 605 |  |  | $ | 106 |  |  | $ | 3,198 |  |  | $ | 2,802 |  |  | $ | - |  |  | $ | 2,006 |  |  | $ | 5 |  |  | $ | 136 |  |  | $ | 8,858 |
Balance |  | $ | 605 |  |  | $ | 106 |  |  | $ | 3,198 |  |  | $ | 2,802 |  |  | $ | - |  |  | $ | 2,006 |  |  | $ | 5 |  |  | $ | 136 |  |  | $ | 8,858 |
|  | As of December 31, 2022 |
(Dollars in thousands) |  | One-to-four family residential real estate loan |  |  | Construction and land loans |  |  | Commercial real estate loans |  |  | Commercial loans |  |  | Paycheck protection program loans |  |  | Agriculture loans |  |  | Municipal loans |  |  | Consumer loans |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for loss |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 636 |  |  | $ | - |  |  | $ | 18 |  |  | $ | - |  |  | $ | - |  |  | $ | 654 |
Collectively evaluated for loss |  |  | 655 |  |  |  | 117 |  |  |  | 3,158 |  |  |  | 2,117 |  |  |  | - |  |  |  | 1,948 |  |  |  | 5 |  |  |  | 137 |  |  |  | 8,137 |
Total |  | $ | 655 |  |  | $ | 117 |  |  | $ | 3,158 |  |  | $ | 2,753 |  |  | $ | - |  |  | $ | 1,966 |  |  | $ | 5 |  |  | $ | 137 |  |  | $ | 8,791 |
Loan balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for loss |  | $ | 326 |  |  | $ | 412 |  |  | $ | 1,224 |  |  | $ | 812 |  |  | $ | - |  |  | $ | 1,319 |  |  | $ | 36 |  |  | $ | - |  |  | $ | 4,129 |
Collectively evaluated for loss |  |  | 236,656 |  |  |  | 22,313 |  |  |  | 302,850 |  |  |  | 172,603 |  |  |  | 21 |  |  |  | 82,964 |  |  |  | 1,990 |  |  |  | 26,664 |  |  |  | 846,061 |
Total |  | $ | 236,982 |  |  | $ | 22,725 |  |  | $ | 304,074 |  |  | $ | 173,415 |  |  | $ | 21 |  |  | $ | 84,283 |  |  | $ | 2,026 |  |  | $ | 26,664 |  |  | $ | 850,190 |
The Company recorded net loan recoveries of $521,000 during the third quarter of 2023 compared to net loan recoveries of $43,000 during the third quarter of 2022. The Company recorded net loan recoveries of $406,000 during the nine months ended September 30, 2023 compared to net loan recoveries of $83,000 during the nine months ended September 30, 2022. The following table presents information on non-accrual and loans past due over 89 days and still accruing: Schedule of Non-accrual and Loans Past Due Over 89 Days Still Accruing
(Dollars in thousands) |  | As of September 30, 2023 |
|  | Non-accrual with no allowance for credit loss |  |  | Non-accrual with allowance for credit losses |  |  | Loans past due over 89 days still accruing |
One-to-four family residential real estate loans |  | $ | 31 |  |  | $ | - |  |  | $ | - |
Construction and land loans |  |  | 193 |  |  |  | - |  |  |  | - |
Commercial real estate loans |  |  | 1,211 |  |  |  | - |  |  |  | - |
Commercial loans |  |  | 208 |  |  |  | 2,551 |  |  |  | - |
Paycheck protection program loans |  |  | - |  |  |  | - |  |  |  | - |
Agriculture loans |  |  | 214 |  |  |  | 4 |  |  |  | - |
Municipal loans |  |  | - |  |  |  | - |  |  |  | - |
Consumer loans |  |  | 28 |  |  |  | - |  |  |  | - |
Total loans |  | $ | 1,885 |  |  | $ | 2,555 |  |  | $ | - |
The following table presents information on impaired loans: Schedule of Impaired Financing Receivables
(Dollars in thousands) |  | As of December 31, 2022 |
|  | Unpaid contractual principal |  |  | Impaired loan balance |  |  | Impaired loans without an allowance |  |  | Impaired loans with an allowance |  |  | Related allowance recorded |  |  | Year-to-date average loan balance |  |  | Year-to-date interest income recognized |
One-to-four family residential real estate |  | $ | 326 |  |  | $ | 326 |  |  | $ | 326 |  |  | $ | - |  |  | $ | - |  |  | $ | 357 |  |  | $ | 9 |
Construction and land |  |  | 843 |  |  |  | 412 |  |  |  | 412 |  |  |  | - |  |  |  | - |  |  |  | 243 |  |  |  | 10 |
Commercial real estate |  |  | 1,224 |  |  |  | 1,224 |  |  |  | 1,224 |  |  |  | - |  |  |  | - |  |  |  | 1,224 |  |  |  | 47 |
Commercial |  |  | 1,063 |  |  |  | 812 |  |  |  | 75 |  |  |  | 737 |  |  |  | 636 |  |  |  | 865 |  |  |  | 5 |
Agriculture |  |  | 1,402 |  |  |  | 1,319 |  |  |  | 1,301 |  |  |  | 18 |  |  |  | 18 |  |  |  | 1,433 |  |  |  | 64 |
Municipal |  |  | 36 |  |  |  | 36 |  |  |  | 36 |  |  |  | - |  |  |  | - |  |  |  | 36 |  |  |  | 1 |
Consumer |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total impaired loans |  | $ | 4,894 |  |  | $ | 4,129 |  |  | $ | 3,374 |  |  | $ | 755 |  |  | $ | 654 |  |  | $ | 4,158 |  |  | $ | 136 |
The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. The accrual of interest on non-performing loans is discontinued at the time the loan is 90 days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. There were no loans 90 days or more delinquent and accruing interest at September 30, 2023 or December 31, 2022. The following tables present information on the Company’s past due and non-accrual loans by loan class: Schedule of Past Due Financing Receivables
(Dollars in thousands) |  | As of September 30, 2023 |
|  | 30-59 days delinquent and accruing |  |  | 60-89 days delinquent and accruing |  |  | 90 days or more delinquent and accruing |  |  | Total past due loans accruing |  |  | Non-accrual loans |  |  | Total past due and non-accrual loans |  |  | Total loans not past due |
One-to-four family residential real estate loans |  | $ | - |  |  | $ | 141 |  |  | $ | - |  |  | $ | 141 |  |  | $ | 31 |  |  | $ | 172 |  |  | $ | 289,399 |
Construction and land loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 193 |  |  |  | 193 |  |  |  | 21,464 |
Commercial real estate loans |  |  | 1,280 |  |  |  | - |  |  |  | - |  |  |  | 1,280 |  |  |  | 1,211 |  |  |  | 2,491 |  |  |  | 320,936 |
Commercial loans |  |  | 4,389 |  |  |  | 10 |  |  |  | - |  |  |  | 4,399 |  |  |  | 2,759 |  |  |  | 7,158 |  |  |  | 178,673 |
Paycheck protection program loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Agriculture loans |  |  | 22 |  |  |  | 236 |  |  |  | - |  |  |  | 258 |  |  |  | 218 |  |  |  | 476 |  |  |  | 84,084 |
Municipal loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,200 |
Consumer loans |  |  | 95 |  |  |  | - |  |  |  | - |  |  |  | 95 |  |  |  | 28 |  |  |  | 123 |  |  |  | 29,057 |
Total |  | $ | 5,786 |  |  | $ | 387 |  |  | $ | - |  |  | $ | 6,173 |  |  | $ | 4,440 |  |  | $ | 10,613 |  |  | $ | 926,813 |
Percent of gross loans |  |  | 0.62 | % |  |  | 0.04 | % |  |  | 0.00 | % |  |  | 0.66 | % |  |  | 0.47 | % |  |  | 1.13 | % |  |  | 98.87 | %
(Dollars in thousands) |  | As of December 31, 2022 |
|  | 30-59 days delinquent and accruing |  |  | 60-89 days delinquent and accruing |  |  | 90 days or more delinquent and accruing |  |  | Total past due loans accruing |  |  | Non-accrual loans |  |  | Total past due and non-accrual loans |  |  | Total loans not past due |
One-to-four family residential real estate loans |  | $ | 8 |  |  | $ | 72 |  |  | $ | - |  |  | $ | 80 |  |  | $ | 170 |  |  | $ | 250 |  |  | $ | 236,732 |
Construction and land loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 195 |  |  |  | 195 |  |  |  | 22,530 |
Commercial real estate loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,224 |  |  |  | 1,224 |  |  |  | 302,850 |
Commercial loans |  |  | - |  |  |  | 411 |  |  |  | - |  |  |  | 411 |  |  |  | 812 |  |  |  | 1,223 |  |  |  | 172,192 |
Paycheck protection program loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 21 |
Agriculture loans |  |  | - |  |  |  | 180 |  |  |  | - |  |  |  | 180 |  |  |  | 925 |  |  |  | 1,105 |  |  |  | 83,178 |
Municipal loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,026 |
Consumer loans |  |  | 67 |  |  |  | - |  |  |  | - |  |  |  | 67 |  |  |  | - |  |  |  | 67 |  |  |  | 26,597 |
Total |  | $ | 75 |  |  | $ | 663 |  |  | $ | - |  |  | $ | 738 |  |  | $ | 3,326 |  |  | $ | 4,064 |  |  | $ | 846,126 |
Percent of gross loans |  |  | 0.01 | % |  |  | 0.08 | % |  |  | 0.00 | % |  |  | 0.09 | % |  |  | 0.39 | % |  |  | 0.48 | % |  |  | 99.52 | %
Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the nine months ended September 30, 2023 and 2022 would have increased interest income by $75,000 and $155,000, respectively. No interest income related to non-accrual loans was included in interest income for the three and nine months ended September 30, 2023 and 2022. The Company also categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with contractual loan terms. Classified loans are those that are assigned a special mention, substandard or doubtful risk rating using the following definitions: Special Mention: Loans are currently protected by the current net worth and paying capacity of the obligor or of the collateral pledged but such protection is potentially weak. These loans constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. The credit risk may be relatively minor, yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. Substandard: Loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following table presents information on the Company’s risk category of loans by type and year of origination: Schedule of Troubled Debt Restructurings on Financings Receivables and Year of Origination
(Dollars in thousands) |  | As of September 30, 2023 |
|  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Revolving loans amortized cost |  |  | Revolving loans converted to term |  |  | Total |
One-to-four family residential real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 76,711 |  |  | $ | 86,384 |  |  | $ | 43,601 |  |  | $ | 34,007 |  |  | $ | 13,013 |  |  | $ | 31,361 |  |  | $ | 4,052 |  |  | $ | 411 |  |  | $ | 289,540 |
Classified |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 31 |  |  |  | - |  |  |  | - |  |  |  | 31 |
Total |  | $ | 76,711 |  |  | $ | 86,384 |  |  | $ | 43,601 |  |  | $ | 34,007 |  |  | $ | 13,013 |  |  | $ | 31,392 |  |  | $ | 4,052 |  |  | $ | 411 |  |  | $ | 289,571 |
Charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Construction and land loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 5,531 |  |  | $ | 5,731 |  |  | $ | 5,390 |  |  | $ | 2,688 |  |  | $ | 924 |  |  | $ | 341 |  |  | $ | 530 |  |  | $ | 329 |  |  | $ | 21,464 |
Classified |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 193 |  |  |  | - |  |  |  | - |  |  |  | 193 |
Total |  | $ | 5,531 |  |  | $ | 5,731 |  |  | $ | 5,390 |  |  | $ | 2,688 |  |  | $ | 924 |  |  | $ | 534 |  |  | $ | 530 |  |  | $ | 329 |  |  | $ | 21,657 |
Charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Commercial real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 32,881 |  |  | $ | 77,872 |  |  | $ | 59,680 |  |  | $ | 54,139 |  |  | $ | 31,836 |  |  | $ | 60,917 |  |  | $ | 2,751 |  |  | $ | 389 |  |  | $ | 320,465 |
Classified |  |  | - |  |  |  | - |  |  |  | 484 |  |  |  | 25 |  |  |  | 181 |  |  |  | 2,272 |  |  |  | - |  |  |  | - |  |  |  | 2,962 |
Total |  | $ | 32,881 |  |  | $ | 77,872 |  |  | $ | 60,164 |  |  | $ | 54,164 |  |  | $ | 32,017 |  |  | $ | 63,189 |  |  | $ | 2,751 |  |  | $ | 389 |  |  | $ | 323,427 |
Charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 33,938 |  |  | $ | 35,464 |  |  | $ | 18,840 |  |  | $ | 17,282 |  |  | $ | 2,990 |  |  | $ | 4,991 |  |  | $ | 61,285 |  |  | $ | 4,579 |  |  | $ | 179,369 |
Classified |  |  | 220 |  |  |  | 2,037 |  |  |  | 641 |  |  |  | 488 |  |  |  | 535 |  |  |  | 37 |  |  |  | 2,305 |  |  |  | 199 |  |  |  | 6,462 |
Total |  | $ | 34,158 |  |  | $ | 37,501 |  |  | $ | 19,481 |  |  | $ | 17,770 |  |  | $ | 3,525 |  |  | $ | 5,028 |  |  | $ | 63,590 |  |  | $ | 4,778 |  |  | $ | 185,831 |
Charge-offs |  | $ | - |  |  | $ | (17 | ) |  | $ | (90 | ) |  | $ | (44 | ) |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | (151 | )
Agriculture loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 4,597 |  |  | $ | 12,195 |  |  | $ | 5,361 |  |  | $ | 4,250 |  |  | $ | 4,225 |  |  | $ | 12,643 |  |  | $ | 40,920 |  |  | $ | 151 |  |  | $ | 84,342 |
Classified |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 50 |  |  |  | 114 |  |  |  | 54 |  |  |  | - |  |  |  | 218 |
Total |  | $ | 4,597 |  |  | $ | 12,195 |  |  | $ | 5,361 |  |  | $ | 4,250 |  |  | $ | 4,275 |  |  | $ | 12,757 |  |  | $ | 40,974 |  |  | $ | 151 |  |  | $ | 84,560 |
Charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Municipal loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 1,452 |  |  | $ | 135 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1,613 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,200 |
Classified |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 1,452 |  |  | $ | 135 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1,613 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,200 |
Charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Consumer loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 4,282 |  |  | $ | 1,493 |  |  | $ | 1,477 |  |  | $ | 1,398 |  |  | $ | 2 |  |  | $ | 5,177 |  |  | $ | 15,302 |  |  | $ | 21 |  |  | $ | 29,152 |
Classified |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 25 |  |  |  | 2 |  |  |  | 28 |
Total |  | $ | 4,282 |  |  | $ | 1,493 |  |  | $ | 1,478 |  |  | $ | 1,398 |  |  | $ | 2 |  |  | $ | 5,177 |  |  | $ | 15,327 |  |  | $ | 23 |  |  | $ | 29,180 |
Charge-offs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | (257 | ) |  | $ | - |  |  | $ | (257 | )
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonclassified |  | $ | 159,392 |  |  | $ | 219,274 |  |  | $ | 134,349 |  |  | $ | 113,764 |  |  | $ | 52,990 |  |  | $ | 117,043 |  |  | $ | 124,840 |  |  | $ | 5,880 |  |  | $ | 927,532 |
Classified |  |  | 220 |  |  |  | 2,037 |  |  |  | 1,126 |  |  |  | 513 |  |  |  | 766 |  |  |  | 2,647 |  |  |  | 2,384 |  |  |  | 201 |  |  |  | 9,894 |
Total |  | $ | 159,612 |  |  | $ | 221,311 |  |  | $ | 135,475 |  |  | $ | 114,277 |  |  | $ | 53,756 |  |  | $ | 119,690 |  |  | $ | 127,224 |  |  | $ | 6,081 |  |  | $ | 937,426 |
Charge-offs |  | $ | - |  |  | $ | (17 | ) |  | $ | (90 | ) |  | $ | (44 | ) |  | $ | - |  |  | $ | - |  |  | $ | (257 | ) |  | $ | - |  |  | $ | (408 | )
The following table provides information on the Company’s risk categories by loan class: Schedule of Troubled Debt Restructurings on Financing Receivables
|  | As of December 31, 2022 |
(Dollars in thousands) |  | Nonclassified |  |  | Classified |
One-to-four family residential real estate loans |  | $ | 236,663 |  |  | $ | 319 |
Construction and land loans |  |  | 22,530 |  |  |  | 195 |
Commercial real estate loans |  |  | 300,216 |  |  |  | 3,858 |
Commercial loans |  |  | 165,709 |  |  |  | 7,706 |
Paycheck protection program loans |  |  | 21 |  |  |  | - |
Agriculture loans |  |  | 83,358 |  |  |  | 925 |
Municipal loan |  |  | 2,026 |  |  |  | - |
Consumer loans |  |  | 26,664 |  |  |  | - |
Total |  | $ | 837,187 |  |  | $ | 13,003 |
The following table provides information on the Company’s allowance for credit losses related to unfunded loan commitments. Schedule of Allowance for Credit Losses Related to Unfunded Loan Commitments
(dollars in thousands) |  |  |
Balance at January 1, 2023 |  | $ | 170 |
Impact of adopting ASC 326 |  |  | - |
Provision for credit losses |  |  | 30 |
Balance at September 30, 2023 |  | $ | 200 |
The following table presents the amortized cost basis of loans at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023 by class, type of modification and includes the financial effect of the modification. Schedule of Amortization cost
(Dollars in thousands) |  | As of September 30, 2023 |  |  |
|  | Amortized cost basis |  |  | % of loan class total |  |  | Financial effect
Term extension: |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 145 |  |  |  | 0.1 | % |  | 90 day payment deferral
As of September 30, 2023, all loans experiencing both financial difficulty and modified during the three and nine months ended September 30, 2023 were current under the terms of the agreements. There were no commitments to lend additional funds to the borrowers and there were no charge-offs recorded against the loans. The Company had no allowance for credit losses recorded against these loans as of September 30, 2023. The Company did not have any loan modifications that had a payment default during the three and nine months ended September 30, 2023.

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