Allowances for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Allowance for Credit Loss [Abstract]

Summary of Allowances for Loan Losses by Loan Class

The following table summarizes the activity in the allowance for loan losses by loan class for the three month periods ended June 30, 2022 and 2021.

	Agriculture Loans			Commercial Loans			Commercial Real Estate Loans			Residential Real Estate Loan			Consumer Loans			Municipal Loans			Unallocated Loans			Total
(In Thousands)	For the Three Months Ended June 30, 2022
Allowance for loan losses:
Beginning balance	$	20		$	585		$	1,070		$	1,728		$	13		$	15		$	12		$	3,443
Charge-offs		-			(1	)		(1	)		-			-			-			-			(2	)
Recoveries		-			5			-			49			—			-			-			54
Provision		(3	)		(83	)		717			(230	)		8			(2	)		(12	)		395
Ending balance	$	17		$	506		$	1,786		$	1,547		$	21		$	13		$	0		$	3,890
	For the Three Months Ended June 30, 2021
Allowance for loan losses:
Beginning balance	$	105		$	315		$	315		$	1,674		$	24		$	18		$	336		$	2,787
Charge-offs		—			—			—			—			—			—			—			—
Recoveries		—			19			—			25			—			—			—			44
Provision		(7	)		18			25			(29	)		(1	)		(2	)		40			44
Ending balance	$	98		$	352		$	340		$	1,670		$	23		$	16		$	376		$	2,875

The following table summarizes the activity in the allowance for loan losses by loan class for the six month periods ended June 30, 2022 and 2021.

	Agriculture Loans			Commercial and PPP Loans			Commercial Real Estate Loans			Residential Real Estate Loan			Consumer Loans			Municipal Loans			Unallocated Loans			Total
(In Thousands)	For the Six Months Ended June 30, 2022
Allowance for loan losses:
Beginning balance	$	23		$	582		$	799		$	1,634		$	22		$	15		$	77		$	3,152
Charge-offs		-			(1	)		(1	)		-			-			-			-			(2	)
Recoveries		—			7			—			56			2			—			—			65
Provision		(6	)		(82	)		988			(143	)		(3	)		(2	)		(77	)		675
Ending balance	$	17		$	506		$	1,786		$	1,547		$	21		$	13		$	0		$	3,890
	For the Six Months Ended June 30, 2021
Allowance for loan losses:
Beginning balance	$	120		$	290		$	314		$	1,702		$	35		$	18		$	310		$	2,789
Charge-offs		—			—			—			(49	)		(3	)		—			—			(52	)
Recoveries		—			19			—			27			1			—			—			47
Provision		(22	)		43			26			(10	)		(10	)		(2	)		66			91
Ending balance	$	98		$	352		$	340		$	1,670		$	23		$	16		$	376		$	2,875

Summary of Balance of Loans Individually Evaluated vs. Collectively Evaluated for Impairment

The following table illustrates the balance of loans individually evaluated vs. collectively evaluated for impairment at June 30, 2022 and December 31, 2021.

	Agriculture Loans		Commercial and PPP Loans		Commercial Real Estate Loans		Residential Real Estate Loan		Consumer Loans		Municipal Loans		Unallocated Loans		Total
(In Thousands)	As of June 30, 2022
Allowance for loan losses:
Ending balance	$	17	$	506	$	1,786	$	1,547	$	21	$	13	$	0	$	3,890
Ending balance: individually    evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively evaluated    for impairment	$	17	$	506	$	1,786	$	1,547	$	21	$	13	$	0	$	3,890
Loans:
Ending balance	$	7,710	$	90,979	$	435,588	$	241,401	$	8,689	$	5,814			$	790,181
Ending balance: individually    evaluated for impairment	$	200	$	2,451	$	2,501	$	3,145	$	—	$	—			$	8,297
Ending balance: loans acquired with deteriorated credit    quality	$	—	$	601	$	4,369	$	597	$	—	$	—			$	5,567
Ending balance: collectively evaluated    for impairment	$	7,510	$	87,927	$	428,718	$	237,659	$	8,689	$	5,814			$	776,317

	Agriculture Loans		Commercial and PPP Loans		Commercial Real Estate Loans		Residential Real Estate Loan		Consumer Loans		Municipal Loans		Unallocated Loans		Total
(In Thousands)	As of December 31, 2021
Allowance for loan losses:
Ending balance	$	23	$	582	$	799	$	1,634	$	22	$	15		77	$	3,152
Ending balance: individually    evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Ending balance: collectively evaluated    for impairment	$	23	$	582	$	799	$	1,634	$	22	$	15		77	$	3,152
Loans:
Ending balance	$	9,341	$	122,378	$	338,749	$	231,302	$	7,087	$	6,182			$	715,039
Ending balance: individually    evaluated for impairment	$	-	$	42	$	-	$	709	$	-	$	-			$	751
Ending balance: loans acquired with deteriorated credit    quality	$	-	$	512	$	4,394	$	650	$	-	$	-			$	5,556
Ending balance: collectively evaluated    for impairment	$	9,341	$	121,824	$	334,355	$	229,943	$	7,087	$	6,182			$	708,732

Summary of Activity for Accretable Yield of Purchased Credit-impaired Loans

The following table provides activity for the accretable yield of PCI loans for the three and six months ended June 30, 2022:

(In Thousands)	Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Accretable yield, beginning of period	$	206		$	307
Additions		—			—
Accretion of income		(25	)		(126	)
Reclassifications from nonaccretable difference due to improvement in expected cash flows		—			—
Other changes, net		—			—
Accretable yield, end of period	$	181		$	181

Summary of Classes of the Loan Portfolio Summarized by the Internal Risk Rating System

The following table presents the classes of the loan portfolio summarized by the internal risk rating system as of June 30, 2022 and December 31, 2021:

(In Thousands)			Special
As of June 30, 2022	Pass		Mention		Substandard		Doubtful		Total
Agriculture loans	$	7,510	$	-	$	200	$	-	$	7,710
Commercial and PPP loans		86,141		1,785		3,053		-		90,979
Commercial real estate loans		428,458		310		4,743		2,077		435,588
Residential real estate loans		236,123		1,453		3,202		623		241,401
Consumer loans		8,689		-		-		-		8,689
Municipal loans		5,814		-		-		-		5,814
Total	$	772,735	$	3,548	$	11,198	$	2,700	$	790,181
(In Thousands)			Special
As of December 31, 2021	Pass		Mention		Substandard		Doubtful		Total
Agriculture loans	$	9,341	$	-	$	-	$	-	$	9,341
Commercial and PPP		117,918		3,757		703		-		122,378
Commercial real estate loans		332,156		2,077		4,516		-		338,749
Residential real estate loans		228,664		1,657		981		-		231,302
Consumer loans		7,087		-		-		-		7,087
Municipal loans		6,182		-		-		-		6,182
Total	$	701,348	$	7,491	$	6,200	$	-	$	715,039

Summary of Aging Analysis of the Recorded Investment of Past-Due Loans

The following tables present an aging analysis of the recorded investment of past-due loans.

	June 30, 2022
(In Thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Purchased Credit Impaired Loans		Total   Loans		Total > 90 Days and Accruing
Agriculture loans	$	154	$	-	$	-	$	154	$	7,556	$	-	$	7,710	$	-
Commercial and PPP loans		-		21		-		21		90,958		-		90,979		-
Commercial real estate loans		460		140		-		600		430,623		4,365		435,588		-
Residential real estate loans		1,467		210		338		2,015		239,386		-		241,401		-
Consumer loans		15		2		-		17		8,672		-		8,689		-
Municipal loans				-		-		-		5,814		-		5,814		-
Total	$	2,096	$	373	$	338	$	2,807	$	783,009	$	4,365	$	790,181	$	-
	December 31, 2021
(In Thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Purchased Credit Impaired Loans		Total   Loans		Total > 90 Days and   Accruing
Agriculture loans	$	83	$	-	$	-	$	83	$	9,258	$	-	$	9,341	$	-
Commercial and PPP loans		66		-		-		66		121,800		512		122,378		-
Commercial real estate loans		245		-		-		245		334,110		4,394		338,749		-
Residential real estate loans		1,427		211		869		2,507		228,145		650		231,302		762
Consumer loans		31		2		-		33		7,054		-		7,087		-
Municipal loans		-		-		-		-		6,182		-		6,182		-
Total	$	1,852	$	213	$	869	$	2,934	$	706,549	$	5,556	$	715,039	$	762

Summary of Impaired Loans

The following tables present the recorded investment and unpaid principal balances for impaired loans and related allowance, if applicable. Also presented are the average recorded investments and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

	As of June 30, 2022
(In Thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Agriculture loans	$	200	$	200	$	—
Commercial loans		2,451		2,471		—
Commercial real estate loans		2,501		2,501		—
Residential real estate loans		3,145		3,269		—
Consumer loans		—		—		—
Municipal loans		—		—		—
With an allowance recorded:
Agriculture loans	$	—	$	—	$	—
Commercial loans		—		—		—
Commercial real estate loans		—		—		—
Residential real estate loans		—		—		—
Consumer loans		—		—		—
Municipal loans		—		—		—
Total
Agriculture loans	$	200	$	200	$	—
Commercial loans		2,451		2,471		—
Commercial real estate loans		2,501		2,501		—
Residential real estate loans		3,145		3,269		—
Consumer loans		—		—		—
Municipal loans		—		—		—
	$	8,297	$	8,441	$	—

	As of December 31, 2021
(In Thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Agriculture loans	$	—	$	—	$	—
Commercial loans		42		61		—
Commercial real estate loans		—		—		—
Residential real estate loans		709		779		—
Consumer loans		—		—		—
Municipal loans		—		—		—
With an allowance recorded:
Agriculture loans	$	—	$	—	$	—
Commercial loans		—		—		—
Commercial real estate loans		—		—		—
Residential real estate loans		—		—		—
Consumer loans		—		—		—
Municipal loans		—		—		—
		—		—		—
Total
Agriculture loans	$	—	$	—	$	—
Commercial loans		42		61		—
Commercial real estate loans		—		—		—
Residential real estate loans		709		779		—
Consumer loans		—		—		—
Municipal loans		—		—		—
	$	751	$	840	$	—

	For the Three Months Ended June 30,
	2022				2021
(In Thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Agriculture loans	$	237	$	3	$	—	$	—
Commercial loans		4,706		66		—		—
Commercial real estate loans		455		4		—		—
Residential real estate loans		3,143		23		213		4
Consumer loans		—		—		—		—
Municipal loans		—		—		—		—
		8,541		96		213		4
With an allowance recorded:
Agriculture loans	$	—	$	—	$	—	$	—
Commercial loans		—		—				—
Commercial real estate loans		—		—		—		—
Residential real estate loans		—		—		—		—
Consumer loans		—		—		—		—
Municipal loans		—		—		—		—
		-		-		-		-
Total	$	8,541	$	96	$	213	$	4
	For the Six Months Ended June 30,
	2022				2021
(In Thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Agriculture loans	$	242	$	6	$	—	$	—
Commercial loans		4,935		132		—		—
Commercial real estate loans		461		9		—		—
Residential real estate loans		3,171		48		225		8
Consumer loans		—				—		—
Municipal loans		—				—		—
	$	8,809	$	195	$	225	$	8
With an allowance recorded:
Agriculture loans	$	—	$	—	$	—	$	—
Commercial loans		—		—		—		—
Commercial real estate loans		—		—		—		—
Residential real estate loans		—		—		—		—
Consumer loans		—		—		—		—
Municipal loans		—		—		—		—
		-		-		-		-
Total	$	8,809	$	195	$	225	$	8

Summary of Portfolio of Nonaccrual Loans

The following table presents nonaccrual loans by classes of the loan portfolio:

(In Thousands)	June 30, 2022		December 31, 2021
Commercial loans	$	36	$	39
Commercial real estate loans		137		144
Residential real estate loans		1,321		449
Consumer loans		—		2
Total	$	1,494	$	634