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Loans (Tables)
 12 Months Ended
Dec. 31, 2022
Loans [Abstract]  
Loan Portfolio, by Loan Class
The composition of the Company’s loan portfolio, by loan class, at December 31, is as follows:

 
2022
    
2021
  
Commercial
  
$
106,771
    
$
135,894
  
Commercial Real Estate
    
645,166
      
526,924
  
Agriculture
    
114,040
      
107,183
  
Residential Mortgage
    
92,669
      
76,160
  
Residential Construction
    
10,167
      
4,482
  
Consumer
    
15,287
      
17,258
  
                 
     
984,100
      
867,901
  
Allowance for loan losses
    
(14,792
)
    
(13,952
)
Net deferred origination fees and costs
    
830
   
(1,232
)
                 
Loans, net
  
$
970,138
    
$
852,717
  
Loans by Delinquency and Non-Accrual Status
The Company’s loans by delinquency and non-accrual status, as of December 31, 2022 and 2021, was as follows:

 
Current &
Accruing
    
30-59 Days
Past Due &
Accruing
    
60-89 Days
Past Due &
Accruing
    
90 Days or
more Past Due
& Accruing
    
Nonaccrual
    
Total Loans
  
December 31, 2022
                                    
Commercial
  
$
106,327
    
$
41
    
$
—
    
$
403
    
$
—
    
$
106,771
  
Commercial Real Estate
    
645,166
      
—
      
—
      
—
      
—
      
645,166
  
Agriculture
    
106,624
      
—
      
—
      
—
      
7,416
      
114,040
  
Residential Mortgage
    
92,546
      
—
      
—
      
—
      
123
      
92,669
  
Residential Construction
    
10,167
      
—
      
—
      
—
      
—
      
10,167
  
Consumer
    
14,650
      
—
      
—
      
—
      
637
      
15,287
  
Total
  
$
975,480
    
$
41
    
$
—
    
$
403
    
$
8,176
    
$
984,100
  
                                                 
December 31, 2021
                                                
Commercial
  
$
134,890
    
$
394
    
$
477
    
$
—
    
$
133
    
$
135,894
  
Commercial Real Estate
    
526,337
      
32
      
—
      
—
      
555
      
526,924
  
Agriculture
    
98,471
      
—
      
—
      
—
      
8,712
      
107,183
  
Residential Mortgage
    
75,861
      
161
      
—
      
—
      
138
      
76,160
  
Residential Construction
    
4,482
      
—
      
—
      
—
      
—
      
4,482
  
Consumer
    
16,523
      
—
      
76
      
—
      
659
      
17,258
  
Total
  
$
856,564
    
$
587
    
$
553
    
$
—
    
$
10,197
    
$
867,901
  
Impaired Loans, Segregated by Loan Class
Impaired loans, segregated by loan class, as of December 31, 2022 and 2021, were as follows:

 
Unpaid
Contractual
Principal
Balance
    
Recorded
Investment
with no
Allowance
    
Recorded
Investment
with
Allowance
    
Total
Recorded
Investment
    
Related
Allowance
  
December 31, 2022
                              
Commercial
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
Commercial Real Estate
    
—
      
—
      
—
      
—
      
—
  
Agriculture
    
10,032
      
7,416
      
—
      
7,416
      
—
  
Residential Mortgage
    
673
      
123
      
499
      
622
      
75
  
Residential Construction
    
—
      
—
      
—
      
—
      
—
  
Consumer
    
822
      
637
      
64
      
701
      
2
  
Total
  
$
11,527
    
$
8,176
    
$
563
    
$
8,739
    
$
77
  
                                         
December 31, 2021
                                        
Commercial
  
$
142
    
$
133
    
$
—
    
$
133
    
$
—
  
Commercial Real Estate
    
555
      
555
      
—
      
555
      
—
  
Agriculture
    
10,680
      
8,712
      
—
      
8,712
      
—
  
Residential Mortgage
    
701
      
138
      
517
      
655
      
81
  
Residential Construction
    
241
      
—
      
241
      
241
      
10
  
Consumer
    
815
      
659
      
64
      
723
      
2
  
Total
  
$
13,134
    
$
10,197
    
$
822
    
$
11,019
    
$
93
  
Average Recorded Investment and Interest Income in Impaired Loans Recognized Using Accrual Basis Method of Accounting
The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the years ended December 31, 2022 and  2021, was as follows:

 
December 31, 2022
    
December 31, 2021
  
   
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Commercial
  
$
40
    
$
3
    
$
300
    
$
7
  
Commercial Real Estate
    
384
      
32
      
4,165
      
509
  
Agriculture
    
8,047
      
—
      
9,046
      
—
  
Residential Mortgage
    
639
      
19
      
809
      
23
  
Residential Construction
    
48
      
—
      
329
      
15
  
Consumer
    
737
      
21
      
745
      
7
  
Total
  
$
9,895
    
$
75
    
$
15,394
    
$
561
  
Loans Modified as TDRs
Loans modified as troubled debt restructurings during the years ended December 31, 2022 and 2021,  were as follows:

   
Year Ended December 31, 2022
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Consumer
    
1
    
$
75
    
$
75
  
Total
    
1
    
$
75
    
$
75
  

 
Year Ended December 31, 2021
  
   
Number of
Contracts
    
Pre-modification
outstanding
recorded
investment
    
Post-
modification
outstanding
recorded
investment
  
Agriculture
     3     $ 9,130     $ 9,130  
Consumer
    
2
      
593
      
593
  
Total
    
5
    
$
9,723
    
$
9,723
  
Risk Ratings by Loan Class
The following table presents the risk ratings by loan class as of December 31, 2022 and 2021.

 
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Loss
    
Total
  
December 31, 2022
                                    
Commercial
  
$
106,643
    
$
—
    
$
128
    
$
—
    
$
—
    
$
106,771
  
Commercial Real Estate
    
631,693
      
6,748
      
6,725
      
—
      
—
      
645,166
  
Agriculture
    
105,560
      
1,064
      
7,416
      
—
      
—
      
114,040
  
Residential Mortgage
    
92,299
      
207
      
163
      
—
      
—
      
92,669
  
Residential Construction
    
10,167
      
—
      
—
      
—
      
—
      
10,167
  
Consumer
    
14,650
      
—
      
637
      
—
      
—
      
15,287
  
Total
  
$
961,012
    
$
8,019
    
$
15,069
    
$
—
    
$
—
    
$
984,100
  
                                                 
December 31, 2021
                                                
Commercial
  
$
132,425
    
$
2,376
    
$
1,093
    
$
—
    
$
—
    
$
135,894
  
Commercial Real Estate
    
516,120
      
6,524
      
4,280
      
—
      
—
      
526,924
  
Agriculture
    
98,471
      
—
      
8,712
      
—
      
—
      
107,183
  
Residential Mortgage
    
76,020
      
—
      
140
      
—
      
—
      
76,160
  
Residential Construction
    
4,482
      
—
      
—
      
—
      
—
      
4,482
  
Consumer
    
16,599
      
—
      
659
      
—
      
—
      
17,258
  
Total
  
$
844,117
    
$
8,900
    
$
14,884
    
$
—
    
$
—
    
$
867,901
  
Allowance for Loan Losses
The following table details activity in the allowance for loan losses by loan category for the years ended December 31, 2022 and  2021.

 
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of December 31, 2021
  
$
1,604
    
$
8,808
    
$
1,482
    
$
742
    
$
74
    
$
167
    
$
1,075
    
$
13,952
  
Provision for loan losses
    
(119
)
    
1,265
      
275
      
138
      
104
      
44
      
(807
)
    
900
  
                                                                 
Charge-offs
    
(297
)
    
—
      
—
      
—
      
—
      
(48
)
    
—
      
(345
)
Recoveries
    
275
      
—
      
—
      
—
      
—
      
10
      
—
      
285
  
Net charge-offs
    
(22
)
    
—
      
—
      
—
      
—
      
(38
)
    
—
      
(60
)
Ending Balance
    
1,463
      
10,073
      
1,757
      
880
      
178
      
173
      
268
      
14,792
  
Period-end amount allocated to:
                                                                
Loans individually evaluated for impairment
    
—
      
—
      
—
      
75
      
—
      
2
      
—
      
77
  
Loans collectively evaluated for impairment
    
1,463
      
10,073
      
1,757
      
805
      
178
      
171
      
268
      
14,715
  
Balance as of December 31, 2022
  
$
1,463
    
$
10,073
    
$
1,757
    
$
880
    
$
178
    
$
173
    
$
268
    
$
14,792
  

 
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Unallocated
    
Total
  
Balance as of December 31, 2020
  
$
2,252
    
$
7,915
    
$
3,834
    
$
635
    
$
128
    
$
214
    
$
438
    
$
15,416
  
Reversal of provision for loan losses
    
(575
)
    
879
      
(2,352
)
    
112
      
(54
)
    
(147
)
    
637
      
(1,500
)
                                                                 
Charge-offs
    
(502
)
    
—
      
—
      
(5
)
    
—
      
(12
)
    
—
      
(519
)
Recoveries
    
429
      
14
      
—
      
—
      
—
      
112
      
—
      
555
  
Net (charge-offs)/ recoveries
    
(73
)
    
14
      
—
      
(5
)
    
—
      
100
      
—
      
36
  
Ending Balance
    
1,604
      
8,808
      
1,482
      
742
      
74
      
167
      
1,075
      
13,952
  
Period-end amount allocated to:
                                                                
Loans individually evaluated for impairment
    
—
      
—
      
—
      
81
      
10
      
2
      
—
      
93
  
Loans collectively evaluated for impairment
    
1,604
      
8,808
      
1,482
      
661
      
64
      
165
      
1,075
      
13,859
  
Balance as of December 31, 2021
  
$
1,604
    
$
8,808
    
$
1,482
    
$
742
    
$
74
    
$
167
    
$
1,075
    
$
13,952
  

The Company’s investment in loans as of December 31, 2022 and 2021 related to each balance in the allowance for loan losses by loan category and disaggregated on the basis of the Company’s impairment methodology was as follows:

 
Commercial
    
Commercial
Real Estate
    
Agriculture
    
Residential
Mortgage
    
Residential
Construction
    
Consumer
    
Total
  
December 31, 2022
  
Loans individually evaluated for impairment
  
$
—
    
$
—
    
$
7,416
    
$
622
    
$
—
    
$
701
    
$
8,739
  
Loans collectively evaluated for impairment
    
106,771
      
645,166
      
106,624
      
92,047
      
10,167
      
14,586
      
975,361
  
Ending Balance
  
$
106,771
    
$
645,166
    
$
114,040
    
$
92,669
    
$
10,167
    
$
15,287
    
$
984,100
  
   
December 31, 2021
  
Loans individually evaluated for impairment
  
$
133
    
$
555
    
$
8,712
    
$
655
    
$
241
    
$
723
    
$
11,019
  
Loans collectively evaluated for impairment
    
135,761
      
526,369
      
98,471
      
75,505
      
4,241
      
16,535
      
856,882
  
Ending Balance
  
$
135,894
    
$
526,924
    
$
107,183
    
$
76,160
    
$
4,482
    
$
17,258
    
$
867,901