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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Schedule of Loans

Loans consisted of the following as of the dates indicated below:

 

   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 
Schedule of Allowance for Credit Losses on Financing Receivables

The following tables provide information on the Company’s allowance for credit losses by loan class and allowance methodology:

 

                                                                     
   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    - 
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 
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 

 

   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 
Schedule of Non-accrual and Loans Past Due Over 89 Days Still Accruing

The following table presents information on non-accrual and loans past due over 89 days and 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   $- 
Schedule of Impaired Financing Receivables

The following table presents information on impaired loans:

 

                                                       
(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 
Schedule of Past Due Financing Receivables

The following tables present information on the Company’s past due and non-accrual loans by loan class:

 

                                                       
(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%
Schedule of Troubled Debt Restructurings on Financings Receivables and Year of Origination

The following table presents information on the Company’s risk category of loans by type 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)
Schedule of Troubled Debt Restructurings on Financing Receivables

The following table provides information on the Company’s risk categories by loan class:

 

               
   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 
Schedule of Allowance for Credit Losses Related to Unfunded Loan Commitments

The following table provides information on the Company’s 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 
Schedule of Amortization cost

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.

 

(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