XML 38 R28.htm IDEA: XBRL DOCUMENT v3.23.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Loans and Allowance for Credit Losses [Abstract]  
Schedule of Categories of Loans The following table summarizes the composition of the loan portfolio:
   Total Loans 
($ in thousands)  June 30,
2023		   December 31,
2022		 
         
Commercial & industrial  $123,226   $128,393 
Commercial real estate - owner occupied   116,421    110,929 
Commercial real estate - nonowner occupied   300,991    301,880 
Agricultural   58,222    64,505 
Residential real estate   321,365    291,368 
Home equity line of credit (HELOC)   46,587    45,056 
Consumer   18,012    19,944 
Total loans   984,824    962,075 
Allowance for credit losses   (15,795)   (13,818)
Loans, net  $969,029   $948,257 
Schedule of Activity Related to The Allowance for Credit Losses The following two tables contain disclosures related to the allowance for loan losses in prior periods under this methodology.
($ in thousands)
For the three months ended
June 30, 2023		  Balance,
beginning of
period		   Impact of
Adopting
ASC 326		   Chargeoffs   Recoveries   Provision for Credit Losses   Balance, end
of period		 
Commercial & industrial  $1,965   $
     -
   $
       -
   $
       -
   $(8)  $1,957 
Commercial real estate - owner occupied   1,795    
-
    
-
    
-
    102    1,897 
Commercial real estate - nonowner occupied   5,841    
-
    
-
    
-
    (58)   5,783 
Agricultural   403    
-
    
-
    
-
    5    408 
Residential real estate   4,692    
-
    (21)   
-
    314    4,985 
HELOC   495    
-
    
-
    
-
    28    523 
Consumer   251    
-
    (11)   10    (8)   242 
Total  $15,442   $
-
   $(32)  $10   $375   $15,795 
($ in thousands)
For the six months ended
June 30, 2023		  Balance, beginning of period   Impact of Adopting
ASC 326		   Chargeoffs   Recoveries   Provision for Credit Losses   Balance, end of period 
Commercial & industrial  $1,663   $230   $
-
   $
-
   $64   $1,957 
Commercial real estate - owner occupied   1,696    54    
-
    
-
    147    1,897 
Commercial real estate - nonowner occupied   4,584    1,015    
-
    
-
    184    5,783 
Agricultural   611    (194)   
-
    
-
    (9)   408 
Residential real estate   4,438    360    (53)   
-
    240    4,985 
HELOC   547    (76)   
-
    
-
    52    523 
Consumer   279    (17)   (48)   18    10    242 
Total  $13,818   $1,372   $(101)  $18   $688   $15,795 

 

($ in thousands)
For the three months ended
June 30, 2022		  Balance, beginning of period   Chargeoffs   Recoveries   Provision for Credit Losses   Balance, end
of period		 
                     
Commercial & industrial  $1,892   $
       -
   $
    -
   $(64)  $1,828 
Commercial real estate - owner occupied   2,564    
-
    
-
    
-
    2,564 
Commercial real estate - nonowner occupied   4,319    
-
    
-
    (212)   4,107 
Agricultural   547    
-
    
-
    13    560 
Residential real estate   3,502    
-
    
-
    249    3,751 
HELOC   534    
-
    
-
    
-
    534 
Consumer   446    (9)   6    14    457 
Total  $13,804   $(9)  $6   $
-
   $13,801 
($ in thousands)
For the six months ended
June 30, 2022		  Balance, beginning of period   Chargeoffs   Recoveries   Provision for Credit Losses   Balance, end
of period		 
                     
Commercial & industrial  $1,890   $
       -
   $
      -
   $(62)  $1,828 
Commercial real estate - owner occupied   2,564    
-
    
-
    
-
    2,564 
Commercial real estate - nonowner occupied   4,217    
-
    
-
    (110)   4,107 
Agricultural   599    
-
    
-
    (39)   560 
Residential real estate   3,515    
-
    
-
    236    3,751 
HELOC   579    
-
    
-
    (45)   534 
Consumer   441    (18)   14    20    457 
Total  $13,805   $(18)  $14   $
-
   $13,801 
($ in thousands)
For the twelve months ended
December 31, 2022		  Balance at Beginning of Period   Chargeoffs   Recoveries   Provision for Credit Losses   Balance at End
of Period		 
                     
Commercial & industrial  $1,890   $
      -
   $
      -
   $(227)  $1,663 
Commercial real estate - owner occupied   2,564    
-
    
-
    (868)   1,696 
Commercial real estate - nonowner occupied   4,217    
-
    
-
    367    4,584 
Agricultural   599    
-
    
-
    12    611 
Residential real estate   3,515    
-
    
-
    923    4,438 
HELOC   579    (34)   47    (45)   547 
Consumer   441    
-
    
-
    (162)   279 
Total  $13,805   $(34)  $47   $
-
   $13,818 
Schedule of Presents an Analysis of Collateral-Dependent Loans The following table presents an analysis of collateral-dependent loans of the Company as of June 30, 2023.
($ in thousands)  Collateral Type   Allocated 
June 30, 2023  Real Estate   Other   Total   Allowance 
                 
Commercial & industrial  $335   $
    -
   $335   $    37 
Commercial real estate - owner occupied   1,912    
-
    1,912    
-
 
Commercial real estate - nonowner occupied   1,372    
-
    1,372    
-
 
Agricultural   
-
    
-
    
-
    
-
 
Residential real estate   1,500    
-
    1,500    15 
HELOC   164    
-
    164    4 
Consumer   
-
    
-
    
-
    
-
 
Total  $5,283   $
-
   $5,283   $56 
Schedule of Allowance for Loan Losses and Recorded Investment The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology under the incurred loss methodology as of December 31, 2022 and June 30, 2022.
December 31, 2022  Commercial & industrial   Commercial real estate   Agricultural   Residential real estate   Consumer   Total 
Allowance for credit losses:                        
Ending allowance attributable to loans:                    
Individually evaluated for impairment  $
-
   $
-
   $
-
   $138   $2   $140 
Collectively evaluated for impairment  $1,663   $6,280   $611   $4,300   $824   $13,678 
                               
Totals  $1,663   $6,280   $611   $4,438   $826   $13,818 
                               
Loans:                              
Individually evaluated for impairment  $204   $347   $
-
   $2,863   $114   $3,528 
Collectively evaluated for impairment  $128,189   $412,462   $64,505   $288,505   $64,886   $958,547 
                               
Totals  $128,393   $412,809   $64,505   $291,368   $65,000   $962,075 
June 30, 2022  Commercial & industrial   Commercial real estate   Agricultural   Residential real estate   Consumer   Total 
Allowance for credit losses:                        
Ending allowance attributable to loans:                    
Individually evaluated for impairment  $
-
   $
-
   $
-
   $167   $4   $171 
Collectively evaluated for impairment  $1,828   $6,671   $560   $3,584   $987   $13,630 
                               
Totals  $1,828   $6,671   $560   $3,751   $991   $13,801 
                               
Loans:                              
Individually evaluated for impairment  $117   $295   $
-
   $2,997   $131   $3,540 
Collectively evaluated for impairment  $127,317   $403,784   $60,490   $238,779   $61,314   $891,684 
                               
Totals  $127,434   $404,079   $60,490   $241,776   $61,445   $895,224 

 
Schedue of Credit Risk Profile of The Company's Loan Portfolio Based on Rating Category The following table presents loan balances by credit quality indicators by year of origination as of June 30, 2023.
($ in thousands)  Term Loans by Year of Origination   Revolving   Revolving Loans Converted     
June 30, 2023  2023   2022   2021   2020   2019   Prior   Loans   to Term   Total 
                                     
Commercial & industrial                                 
Pass (1 - 4)  $8,428   $20,754   $21,837   $11,460   $8,498   $6,792   $44,227   $365   $122,361 
Special Mention (5)   -    -    -    105    -    177    25    31    338 
Substandard (6)   -    42    -    -    -    124    252    -    418 
Doubtful (7)   -    -    -    -    -    103    1    5    109 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total  $8,428   $20,796   $21,837   $11,565   $8,498   $7,196   $44,505   $401   $123,226 
                                              
Commercial real estate - owner occupied                                         
Pass (1 - 4)  $10,436   $21,118   $28,317   $13,897   $13,501   $26,236   $41   $63   $113,609 
Special Mention (5)   -    -    -    711    191    1    -    -    903 
Substandard (6)   -    -    -    1,719    189    -    -    -    1,908 
Doubtful (7)   -    -    -    -    1    -    -    -    1 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total  $10,436   $21,118   $28,317   $16,327   $13,882   $26,237   $41   $63   $116,421 
                                              
Commercial real estate - nonowner occupied                                    
Pass (1 - 4)  $30,149   $75,261   $58,822   $49,332   $31,470   $53,291   $128   $117   $298,570 
Special Mention (5)   -    -    -    -    -    1,024    -    -    1,024 
Substandard (6)   -    -    -    -    864    341    -    -    1,205 
Doubtful (7)   -    -    37    -    -    155    -    -    192 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total  $30,149   $75,261   $58,859   $49,332   $32,334   $54,811   $128   $117   $300,991 
                                              
Agricultural                                             
Pass (1 - 4)  $4,986   $16,821   $13,333   $3,640   $1,961   $11,075   $6,406   $-   $58,222 
Special Mention (5)   -    -    -    -    -    -    -    -    - 
Substandard (6)   -    -    -    -    -    -    -    -    - 
Doubtful (7)   -    -    -    -    -    -    -    -    - 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total  $4,986   $16,821   $13,333   $3,640   $1,961   $11,075   $6,406   $-   $58,222 
                                              
Residential real estate                                             
Pass (1 - 4)  $39,018   $114,076   $87,573   $35,175   $11,673   $26,251   $3,214   $1,900   $318,880 
Special Mention (5)   -    -    254    56    1,031    1,121    -    -    2,462 
Substandard (6)   -    -    -    -    -    23    -    -    23 
Doubtful (7)   -    -    -    -    -    -    -    -    - 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total  $39,018   $114,076   $87,827   $35,231   $12,704   $27,395   $3,214   $1,900   $321,365 
                                              
Home equity line of credit (HELOC)                                         
Pass (1 - 4)  $-   $-   $26   $18   $88   $306   $38,892   $7,005   $46,335 
Special Mention (5)   -    -    -    -    -    64    35    153    252 
Substandard (6)   -    -    -    -    -    -    -    -    - 
Doubtful (7)   -    -    -    -    -    -    -    -    - 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total  $-   $-   $26   $18   $88   $370   $38,927   $7,158   $46,587 
                                              
Consumer                                             
Pass (1 - 4)  $1,510   $6,244   $1,814   $1,124   $362   $212   $6,717   $-   $17,983 
Special Mention (5)   -    9    13    1    6    -    -    -    29 
Substandard (6)   -    -    -    -    -    -    -    -    - 
Doubtful (7)   -    -    -    -    -    -    -    -    - 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total  $1,510   $6,253   $1,827   $1,125   $368   $212   $6,717   $-   $18,012 
                                              
Total Loans                                             
Pass (1 - 4)  $94,527   $254,274   $211,722   $114,646   $67,553   $124,163   $99,625   $9,450   $975,960 
Special Mention (5)   -    9    267    873    1,228    2,387    60    184    5,008 
Substandard (6)   -    42    -    1,719    1,053    488    252    -    3,554 
Doubtful (7)   -    -    37    -    1    258    1    5    302 
Loss (8)   -    -    -    -    -    -    -    -    - 
Total Loans  $94,527   $254,325   $212,026   $117,238   $69,835   $127,296   $99,938   $9,639   $984,824 

  
Schedule of Credit Quality Indicators and Loan Categories The following table presents loan balances by credit quality indicators and loan categories as of December 31, 2022.
($ in thousands)
December 31, 2022		  Commercial & industrial   Commercial real estate - owner occupied   Commercial real estate - nonowner occupied   Agricultural   Residential real estate   HELOC   Consumer   Total 
                                 
Pass (1 - 4)  $127,727   $107,999   $296,611   $64,505   $288,028   $44,746   $19,915   $949,531 
Special Mention (5)   394    2,930    4,899    
-
    
-
    
-
    
-
    8,223 
Substandard (6)   158    
-
    160    
-
    3,316    310    29    3,973 
Doubtful (7)   114    
-
    210    
-
    24    
-
    
-
    348 
Loss (8)   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total Loans  $128,393   $110,929   $301,880   $64,505   $291,368   $45,056   $19,944   $962,075 
Schedule of Loan Portfolio Aging Analysis The following tables present the Company’s loan portfolio aging analysis as of June 30, 2023 and December 31, 2022.
($ in thousands)  30-59 Days   60-89 Days   Greater Than   Total Past         
June 30, 2023  Past Due   Past Due   90 Days Past Due   Due   Current   Total Loans 
                         
Commercial & industrial  $
-
   $67   $141   $208   $123,018   $123,226 
Commercial real estate - owner occupied   
-
    
-
    
-
    
-
    116,421    116,421 
Commercial real estate - nonowner occupied   156    39    53    248    300,743    300,991 
Agricultural   8    
-
    
-
    8    58,214    58,222 
Residential real estate   161    355    1,041    1,557    319,808    321,365 
HELOC   84    
-
    154    238    46,349    46,587 
Consumer   20    54    24    98    17,914    18,012 
Total Loans  $429   $515   $1,413   $2,357   $982,467   $984,824 
   30-59 Days   60-89 Days   Greater Than   Total Past         
December 31, 2022  Past Due   Past Due   90 Days Past Due   Due   Current   Total Loans 
                         
Commercial & industrial  $23   $108   $114   $245   $128,148   $128,393 
Commercial real estate - owner occupied   
-
    
-
    
-
    
-
    110,929    110,929 
Commercial real estate - nonowner occupied   114    
-
    32    146    301,734    301,880 
Agricultural   
-
    
-
    
-
    
-
    64,505    64,505 
Residential real estate   98    411    1,287    1,796    289,572    291,368 
HELOC   98    24    138    260    44,796    45,056 
Consumer   61    26    22    109    19,835    19,944 
Total Loans  $394   $569   $1,593   $2,556   $959,519   $962,075 

  
Schedule of Categories of Nonaccrual Loans The categories of nonaccrual loans as of June 30, 2023 and December 31, 2022 are presented in the following table.
   June 30,
2023		   December 31,
2022		 
($ in thousands)  Nonaccrual
loans with no
allowance		   Nonaccrual
loans with an
allowance		   Total
nonaccrual
loans		   Total
nonaccrual
loans		 
Commercial & industrial  $170   $
-
   $170   $114 
Commercial real estate - owner occupied   
-
    
-
    
-
    
-
 
Commercial real estate - nonowner occupied   192    
-
    192    210 
Agricultural   
-
    
-
    
-
    
-
 
Residential real estate   766    1,500    2,266    3,020 
Home equity line of credit (HELOC)   88    164    252    310 
Consumer   30    
-
    30    28 
Total loans  $1,246   $1,664   $2,910   $3,682 
Schedule of Impaired Loan Activity The following table presents loans individually evaluated for impairment as of and for the three and six months ended June 30, 2022 and for the twelve months ended December 31, 2022:
($ in thousands)
Twelve Months Ended		  Recorded   Unpaid Principal   Related   Average Recorded   Interest Income 
December 31, 2022  Investment   Balance   Allowance   Investment   Recognized 
With no related allowance recorded:                    
Commercial & industrial  $204   $627   $
-
   $650   $34 
Commercial real estate - owner occupied   
-
    
-
    
-
    
-
    
-
 
Commercial real estate - nonowner occupied   347    825    
-
    1,350    94 
Agricultural   
-
    
-
    
-
    
-
    
-
 
Residential real estate   1,491    1,558    
-
    1,793    65 
HELOC   68    68         85    4 
Consumer   
-
    
-
    
-
    
-
    
-
 
With a specific allowance recorded:                         
Commercial & industrial   
-
    
-
    
-
    
-
    
-
 
Commercial real estate - owner occupied   
-
    
-
    
-
    
-
    
-
 
Commercial real estate - nonowner occupied   
-
    
-
    
-
    
-
    
-
 
Agricultural   
-
    
-
    
-
    
-
    
-
 
Residential real estate   1,372    1,372    138    1,424    43 
HELOC   46    46    2    51    2 
Consumer   
-
    
-
    
-
    
-
    
-
 
Totals:                         
Commercial & industrial  $204   $627   $
-
   $650   $34 
Commercial real estate - owner occupied  $
-
   $
-
   $
-
   $
-
   $
-
 
Commercial real estate - nonowner occupied  $347   $825   $
-
   $1,350   $94 
Agricultural  $
-
   $
-
   $
-
   $
-
   $
-
 
Residential real estate  $2,863   $2,930   $138   $3,217   $108 
HELOC  $114   $114   $2   $136   $6 
Consumer  $
-
   $
-
   $
-
   $
-
   $
-
 
   Three Months Ended   Six Months Ended 
June 30, 2022  Average Recorded   Interest Income   Average Recorded   Interest Income 
($ in thousands)  Investment   Recognized   Investment   Recognized 
With no related allowance recorded:                
Commercial & industrial  $216   $1   $216   $1 
Commercial real estate - owner occupied   88    
-
    88    
-
 
Commercial real estate - nonowner occupied   348    6    350    11 
Agricultural   
-
    
-
    
-
    
-
 
Residential real estate   2,002    16    2,011    35 
HELOC   21    
-
    23    1 
Consumer   
-
    
-
    
-
    
-
 
With a specific allowance recorded:                    
Commercial & industrial   
-
    
-
    
-
    
-
 
Commercial real estate - owner occupied   
-
    
-
    
-
    
-
 
Commercial real estate - nonowner occupied   
-
    
-
    
-
    
-
 
Agricultural   
-
    
-
    
-
    
-
 
Residential real estate   1,278    15    1,279    1 
HELOC   123    1    125    1 
Consumer   
-
    
-
    
-
    
-
 
Totals:                    
Commercial & industrial  $216   $1   $216   $1 
Commercial real estate - owner occupied  $88   $
-
   $88   $
-
 
Commercial real estate - nonowner occupied  $348   $6   $350   $11 
Agricultural  $
-
   $
-
   $
-
   $
-
 
Residential real estate  $3,280   $31   $3,290   $36 
HELOC  $144   $1   $148   $2 
Consumer  $
-
   $
-
   $
-
   $
-
 

 
Schedule of Credit Losses for Unfunded Loan Commitments The following table presents the balance and activity in the ACL for unfunded loan commitments for the three and six months ended June 30, 2023.
   Three Months Ended   Six Months Ended 
($ in thousands)  June 30,
2023		   June 30,
2023		 
Balance, beginning of period  $1,086   $
-
 
Adjustment for adoption of ASU 2016-13   
-
    1,149 
Provision for unfunded commitments   (230)   (293)
Balance, end of period  $856   $856