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Loans Receivable and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2022

Loans Receivable and Allowance for Loan Losses [Abstract]



	September 30, 2022				December 31, 2021
Real Estate Loans:
Residential	$	295,125	20.6	%	$	273,040	20.1	%
Commercial		644,607	45.0			628,724	46.4
Agricultural		69,356	4.8			61,925	4.6
Construction		26,637	1.9			21,990	1.6
Commercial loans		184,729	12.9			186,031	13.7
Other agricultural loans		35,733	2.5			37,930	2.8
Consumer loans to individuals		176,680	12.3			146,400	10.8
Total loans		1,432,867	100.0	%		1,356,040	100.0	%
Deferred fees, net		(579)				(1,109)
Total loans receivable		1,432,288				1,354,931
Allowance for loan losses		(16,931)				(16,442)
Net loans receivable	$	1,415,357			$	1,338,489

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



	September 30, 2022		December 31, 2021
Outstanding Balance	$	9,272	$	12,862
Carrying Amount	$	6,614	$	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		(558)		(523)
Reclassification and other		523		993
Balance at end of period	$	1,849	$	1,835

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
September 30, 2022	(In thousands)
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	12	$	—	$	—	$	12
Loans acquired with deteriorated credit quality		571		2,284		2,336		—		—		1,423		—		6,614
Collectively evaluated for impairment		294,554		642,323		67,020		26,637		184,717		34,310		176,680		1,426,241
Total Loans	$	295,125	$	644,607	$	69,356	$	26,637	$	184,729	$	35,733	$	176,680	$	1,432,867



	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
September 30, 2022				(in thousands)
With no related allowance recorded:
Commercial Loans	$	12	$	12		—
Subtotal	$	12	$	12	$	—
Total:
Commercial Loans	$	12	$	12		—
Total Impaired Loans	$	12	$	12	$	—



			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 September 30, 2022 and 2021, respectively (in thousands):



	Average Recorded				Interest Income
	Investment				Recognized
	2022		2021		2022		2021
Real Estate Loans:
Commercial	$	—	$	1,405	$	18	$	55
Agriculture		—		858		—		—
Commercial Loans		13		19		—		—
Other agricultural loans		—		125		—		—
Total	$	13	$	2,407	$	18	$	55

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




	Average Recorded				Interest Income
	Investment				Recognized
	2022		2021		2022		2021
Real Estate Loans:
Commercial	$	825	$	1,560	$	55	$	56
Agriculture		—		858		—		—
Commercial Loans		14		19		3		—
Other agricultural loans		—		114		—		—
Total	$	839	$	2,551	$	58	$	56

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating



			Special				Doubtful
	Pass		Mention		Substandard		or Loss		Total
September 30, 2022
Commercial real estate loans	$	639,609	$	1,284	$	3,714	$	—	$	644,607
Real estate - agricultural		66,813		2,543		—		—		69,356
Commercial loans		184,474		187		68		—		184,729
Other agricultural loans		34,433		708		592		—		35,733
Total	$	925,329	$	4,722	$	4,374	$	—	$	934,425



			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 September 30, 2022 and December 31, 2021 (in thousands):



	Performing		Nonperforming		Total
September 30, 2022
Residential real estate loans	$	294,684	$	441	$	295,125
Construction		26,637		—		26,637
Consumer loans to individuals		176,515		165		176,680
Total	$	497,836	$	606	$	498,442



	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
September 30, 2022
Real Estate loans
Residential	$	293,400	$	649	$	64	$	-	$	441	$	1,154	$	571	$	295,125
Commercial		641,958		365		-		-		-		365		2,284		644,607
Agricultural		67,020		-		-		-		-		-		2,336		69,356
Construction		26,611		-		26		-		-		26		-		26,637
Commercial loans		184,716		1		-		-		12		13		-		184,729
Other agricultural loans		34,310		-				-		-		-		1,423		35,733
Consumer loans		175,722		663		130		-		165		958		-		176,680
Total	$	1,423,737	$	1,678	$	220	$	-	$	618	$	2,516	$	6,614	$	1,432,867



	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)		(1)		-		-		(16)		-		(249)		(386)
Recoveries		122		80		-		-		36		-		37		275
Provision for loan losses		736		(2,354)		220		186		910		123		779		600
Ending balance, September 30, 2022	$	2,913	$	8,603	$	220	$	319	$	2,420	$	123	$	2,333	$	16,931
Ending balance individually evaluated ‎for impairment	$	-	$	—	$	-	$	-	$	—	$	-	$	-	$	—
Ending balance collectively evaluated ‎for impairment	$	2,913	$	8,603	$	220	$	319	$	2,420	$	123	$	2,333	$	16,931


(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, June 30, 2022	$	2,740	$	9,155	$	218	$	242	$	2,504	$	112	$	2,046	$	17,017
Charge Offs		-		(1)		-		-		(1)		-		(115)		(117)
Recoveries		4		-		-		-		13		-		14		31
Provision for loan losses		169		(551)		2		77		(96)		11		388		—
Ending balance, September 30, 2022	$	2,913	$	8,603	$	220	$	319	$	2,420	$	123	$	2,333	$	16,931



(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)		(452)		-		-		(174)		-		(368)		(999)
Recoveries		64		15		-		-		33		-		90		202
Provision for loan losses		424		2,324		-		13		386		-		603		3,750
Ending balance, September 30, 2021	$	2,443	$	9,891	$	—	$	163	$	1,605	$	—	$	2,001	$	16,103
Ending balance individually evaluated ‎for impairment	$	-	$	275	$	-	$	-	$	—	$	-	$	—	$	275
Ending balance collectively evaluated ‎for impairment	$	2,443	$	9,616	$	—	$	163	$	1,605	$	—	$	2,001	$	15,828



(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, June 30, 2021	$	2,233	$	9,580	$	-	$	137	$	1,503	$	-	$	1,887	$	15,340
Charge Offs		—		(13)		-		—		—		-		(107)		(120)
Recoveries		59		5		-		—		9		-		60		133
Provision for loan losses		151		319		-		26		93		-		161		750
Ending balance, September 30, 2021	$	2,443	$	9,891	$	—	$	163	$	1,605	$	—	$	2,001	$	16,103