XML 36 R27.htm IDEA: XBRL DOCUMENT

Loans Receivable and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Loans Receivable and Allowance for Loan Losses [Abstract]



	June 30, 2022				December 31, 2021
Real Estate Loans:
Residential	$	289,157	20.6	%	$	273,040	20.1	%
Commercial		645,404	45.9			628,724	46.4
Agricultural		65,334	4.6			61,925	4.6
Construction		21,856	1.6			21,990	1.6
Commercial loans		187,206	13.3			186,031	13.7
Other agricultural loans		36,092	2.6			37,930	2.8
Consumer loans to individuals		159,968	11.4			146,400	10.8
Total loans		1,405,017	100.0	%		1,356,040	100.0	%
Deferred fees, net		(700)				(1,109)
Total loans receivable		1,404,317				1,354,931
Allowance for loan losses		(17,017)				(16,442)
Net loans receivable	$	1,387,300			$	1,338,489

Information Regarding Loans Acquired and Accounted for in Accordance With ASC 310-30



	June 30, 2022		December 31, 2021
Outstanding Balance	$	9,701	$	12,862
Carrying Amount	$	6,631	$	8,304

Changes in the Accretable Yield for Purchased Credit-impaired Loans



	2022		2021
Balance at beginning of period	$	1,884	$	1,365
Additions		—		—
Accretion		(420)		(357)
Reclassification and other		(395)		11
Balance at end of period	$	1,069	$	1,019

Components Of Purchase Accounting Adjustments Related To Purchased Credit-impaired Loans Acquired



(In Thousands)	July 7, 2020
Contractually required principal and interest	$	15,410
Non-accretable discount		(5,213)
Expected cash flows		10,197
Accretable discount		(1,724)
Estimated fair value	$	8,473

Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
June 30, 2022	(In thousands)
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	13	$	—	$	—	$	13
Loans acquired with deteriorated credit quality		577		2,685		1,971		—		—		1,398		—		6,631
Collectively evaluated for impairment		288,580		642,719		63,363		21,856		187,193		34,694		159,968		1,398,373
Total Loans	$	289,157	$	645,404	$	65,334	$	21,856	$	187,206	$	36,092	$	159,968	$	1,405,017



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
	(In thousands)
December 31, 2021
Individually evaluated for impairment	$	-	$	1,658	$	—	$	-	$	16	$	—	$	-	$	1,674
Loans acquired with deteriorated credit quality		784		3,285		1,918		-		198		2,119		-		8,304
Collectively evaluated for impairment		272,256		623,781		60,007		21,990		185,817		35,811		146,400		1,346,062
Total Loans	$	273,040	$	628,724	$	61,925	$	21,990	$	186,031	$	37,930	$	146,400	$	1,356,040

Impaired Loans and Related Interest Income by Loan Portfolio Class

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable.



			Unpaid
	Recorded		Principal		Associated
	Investment		Balance		Allowance
June 30, 2022				(in thousands)
With no related allowance recorded:
Commercial Loans	$	13	$	13		—
Subtotal	$	13	$	13	$	—
Total:
Commercial Loans	$	13	$	13		—
Total Impaired Loans	$	13	$	13	$	—



			Unpaid
	Recorded		Principal		Associated
	Investment		Balance		Allowance
December 31, 2021				(in thousands)
With no related allowance recorded:
Real Estate Loans:
Commercial	$	141	$	141	$	—
Commercial Loans		16		16		—
Subtotal		157		157		—
With an allowance recorded:
Real Estate Loans
Commercial		1,517		1,517		272
Subtotal		1,517		1,517		272
Total:
Real Estate Loans:
Commercial		1,658		1,658		272
Commercial Loans		16		16		—
Total Impaired Loans	$	1,674	$	1,674	$	272

The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the three-month periods ended June 30, 2022 and 2021, respectively (in thousands):



	Average Recorded				Interest Income
	Investment				Recognized
	2022		2021		2022		2021
Real Estate Loans:
Commercial	$	822	$	1,467	$	20	$	—
Agriculture		—		858		—		—
Commercial Loans		13		29		3		—
Other agricultural loans		—		125		—		—
Total	$	835	$	2,479	$	23	$	—

The following table presents the average recorded investment in impaired loans and the related amount of interest income recognized during the six-month periods ended June 30, 2022 and 2021, respectively (in thousands):




	Average Recorded				Interest Income
	Investment				Recognized
	2022		2021		2022		2021
Real Estate Loans:
Commercial	$	1,100	$	1,541	$	37	$	1
Agriculture		—		858		—		—
Commercial Loans		15		19		3		—
Other agricultural loans		—		110		—		—
Total	$	1,115	$	2,528	$	40	$	1

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating



			Special				Doubtful
	Pass		Mention		Substandard		or Loss		Total
June 30, 2022
Commercial real estate loans	$	640,130	$	1,141	$	4,133	$	—	$	645,404
Real estate - agricultural		62,599		155		2,580		—		65,334
Commercial loans		186,935		190		81		—		187,206
Other agricultural loans		34,013		884		1,195		—		36,092
Total	$	923,677	$	2,370	$	7,989	$	—	$	934,036



			Special				Doubtful
	Pass		Mention		Substandard		or Loss		Total
December 31, 2021
Commercial real estate loans	$	618,541	$	5,146	$	4,765	$	272	$	628,724
Real estate - agricultural		60,193		—		1,732		—		61,925
Commercial loans		185,729		199		103		—		186,031
Other agricultural loans		35,573		210		2,147		—		37,930
Total	$	900,036	$	5,555	$	8,747	$	272	$	914,610

For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. The following table presents the recorded investment in the loan classes based on payment activity as of June 30, 2022 and December 31, 2021 (in thousands):



	Performing		Nonperforming		Total
June 30, 2022
Residential real estate loans	$	288,701	$	456	$	289,157
Construction		21,856		—		21,856
Consumer loans to individuals		159,814		154		159,968
Total	$	470,371	$	610	$	470,981



	Performing		Nonperforming		Total
December 31, 2021
Residential real estate loans	$	272,571	$	469	$	273,040
Construction		21,990		—		21,990
Consumer loans to individuals		146,345		55		146,400
Total	$	440,906	$	524	$	441,430

Loan Portfolio Summarized by the Past Due Status



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Nonaccrual		Total Past Due and Non-Accrual		Purchased Credit-Impaired		Total Loans
June 30, 2022
Real Estate loans
Residential	$	287,483	$	574	$	67	$	-	$	456	$	1,097	$	577	$	289,157
Commercial		642,634		36		-		-		49		85		2,685		645,404
Agricultural		63,339		24		-		-		-		24		1,971		65,334
Construction		21,829		27		-		-		-		27		-		21,856
Commercial loans		187,184		9		-		-		13		22		-		187,206
Other agricultural loans		34,694		-				-		-		-		1,398		36,092
Consumer loans		159,289		449		76		-		154		679		-		159,968
Total	$	1,396,452	$	1,119	$	143	$	-	$	672	$	1,934	$	6,631	$	1,405,017



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Nonaccrual		Total Past Due and Non-Accrual			Purchased Credit-Impaired		Total Loans
December 31, 2021
Real Estate loans
Residential	$	271,622	$	155	$	10	$	-	$	469	$	634	-	$	784	$	273,040
Commercial		625,336		-		-		-		103		103	-		3,285		628,724
Agricultural		59,982		25		-				-		25			1,918		61,925
Construction		21,990		-		-		-		-		-	-		-		21,990
Commercial loans		185,801		3		13		91		16		32	-		198		186,031
Other agricultural loans		35,811		-		-				-		-			2,119		37,930
Consumer loans		145,986		248		111		-		55		414	-		-		146,400
Total	$	1,346,528	$	431	$	134	$	91	$	643	$	1,208	-	$	8,304	$	1,356,040

Allowance for Loan Losses and Recorded Investment in Financing Receivables


(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2021	$	2,175	$	10,878	$	-	$	133	$	1,490	$	-	$	1,766	$	16,442
Charge Offs		(120)		-		-		-		(15)		-		(134)		(269)
Recoveries		118		80		-		-		23		-		23		244
Provision for loan losses		567		(1,803)		218		109		1,006		112		391		600
Ending balance, June 30, 2022	$	2,740	$	9,155	$	218	$	242	$	2,504	$	112	$	2,046	$	17,017
Ending balance individually evaluated ‎for impairment	$	-	$	—	$	-	$	-	$	—	$	-	$	-	$	—
Ending balance collectively evaluated ‎for impairment	$	2,740	$	9,155	$	218	$	242	$	2,504	$	112	$	2,046	$	17,017


(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2022	$	2,326	$	10,287	$	504	$	134	$	1,495	$	292	$	1,622	$	16,660
Charge Offs		(5)		-		-		-		-		-		(82)		(87)
Recoveries		116		6		-		-		14		-		8		144
Provision for loan losses		303		(1,138)		(286)		108		995		(180)		498		300
Ending balance, June 30, 2022	$	2,740	$	9,155	$	218	$	242	$	2,504	$	112	$	2,046	$	17,017



(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2020	$	1,960	$	8,004	$	-	$	150	$	1,360	$	-	$	1,676	$	13,150
Charge Offs		(5)		(439)		-		-		(174)		-		(261)		(879)
Recoveries		5		10		-		-		24		-		30		69
Provision for loan losses		273		2,005		-		(13)		293		-		442		3,000
Ending balance, June 30, 2021	$	2,233	$	9,580	$	—	$	137	$	1,503	$	—	$	1,887	$	15,340
Ending balance individually evaluated ‎for impairment	$	-	$	-	$	-	$	-	$	—	$	-	$	—	$	—
Ending balance collectively evaluated ‎for impairment	$	2,233	$	9,580	$	—	$	137	$	1,503	$	—	$	1,887	$	15,340



(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2021	$	2,124	$	9,084	$	-	$	122	$	1,405	$	-	$	1,774	$	14,509
Charge Offs		—		(439)		-		—		(114)		-		(158)		(711)
Recoveries		3		6		-		—		16		-		17		42
Provision for loan losses		106		929		-		15		196		-		254		1,500
Ending balance, June 30, 2021	$	2,233	$	9,580	$	—	$	137	$	1,503	$	—	$	1,887	$	15,340