XML 50 R37.htm IDEA: XBRL DOCUMENT v3.23.1
Allowances for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 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 years ended December 31, 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 Year Ended December 31, 2022

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

23

 

 

$

582

 

 

$

799

 

 

$

1,634

 

 

$

22

 

 

$

15

 

 

$

77

 

 

$

3,152

 

Charge-offs

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(3

)

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(7

)

Recoveries

 

 

—

 

 

 

32

 

 

 

—

 

 

 

197

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

231

 

Provision

 

 

10

 

 

 

(30

)

 

 

1,663

 

 

 

(292

)

 

 

19

 

 

 

(3

)

 

 

(77

)

 

 

1,290

 

Ending balance

 

$

33

 

 

$

583

 

 

$

2,462

 

 

$

1,536

 

 

$

40

 

 

$

12

 

 

$

0

 

 

$

4,666

 

 

 

For the Year Ended December 31, 2021

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

120

 

 

$

290

 

 

$

314

 

 

$

1,702

 

 

$

35

 

 

$

18

 

 

$

310

 

 

$

2,789

 

Charge-offs

 

 

—

 

 

 

(24

)

 

 

(18

)

 

 

(297

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(339

)

Recoveries

 

 

—

 

 

 

22

 

 

 

—

 

 

 

32

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

54

 

Provision

 

 

(97

)

 

 

294

 

 

 

503

 

 

 

197

 

 

 

(13

)

 

 

(3

)

 

 

(233

)

 

 

648

 

Ending balance

 

$

23

 

 

$

582

 

 

$

799

 

 

$

1,634

 

 

$

22

 

 

$

15

 

 

$

77

 

 

$

3,152

 
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 December 31, 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)

 

As of December 31, 2022

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

33

 

 

$

583

 

 

$

2,462

 

 

$

1,536

 

 

$

40

 

 

$

12

 

 

$

—

 

 

$

4,666

 

Ending balance: individually
   evaluated for impairment

 

$

—

 

 

$

20

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

20

 

Ending balance: collectively evaluated
   for impairment

 

$

33

 

 

$

563

 

 

$

2,462

 

 

$

1,536

 

 

$

40

 

 

$

12

 

 

$

—

 

 

$

4,646

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

15,591

 

 

$

104,755

 

 

$

540,914

 

 

$

250,832

 

 

$

10,057

 

 

$

5,466

 

 

 

 

 

$

927,615

 

Ending balance: individually
   evaluated for impairment

 

$

300

 

 

$

55

 

 

$

2,306

 

 

$

4,652

 

 

$

—

 

 

$

—

 

 

 

 

 

$

7,313

 

Ending balance: loans acquired with deteriorated credit
   quality

 

$

—

 

 

$

—

 

 

$

2,227

 

 

$

182

 

 

$

—

 

 

$

—

 

 

 

 

 

$

2,409

 

Ending balance: collectively evaluated
   for impairment

 

$

15,291

 

 

$

104,700

 

 

$

536,381

 

 

$

245,998

 

 

$

10,057

 

 

$

5,466

 

 

 

 

 

$

917,893

 

 

 

 

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 year ended December 31, 2022.

(In Thousands)

 

December 31, 2022

 

 

December 31, 2021

 

Accretable yield, beginning of period

 

$

307

 

 

$

—

 

Additions

 

 

—

 

 

 

409

 

Accretion of income

 

 

(151

)

 

 

(102

)

Reclassifications from nonaccretable difference due to improvement in expected cash flows

 

 

—

 

 

 

—

 

Other changes, net

 

 

(156

)

 

 

—

 

Accretable yield, end of period

 

$

—

 

 

$

307

 
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 December 31, 2022 and 2021:

 

(In Thousands)

 

 

 

 

Special

 

 

 

 

 

 

 

 

 

 

As of December 31, 2022

 

Pass

 

 

Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Agriculture loans

 

$

15,291

 

 

$

—

 

 

$

300

 

 

$

—

 

 

$

15,591

 

Commercial and PPP loans

 

 

101,980

 

 

 

2,721

 

 

 

54

 

 

 

—

 

 

 

104,755

 

Commercial real estate loans

 

 

533,864

 

 

 

2,516

 

 

 

4,534

 

 

 

—

 

 

 

540,914

 

Residential real estate loans

 

 

246,028

 

 

 

207

 

 

 

4,597

 

 

 

—

 

 

 

250,832

 

Consumer loans

 

 

10,057

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,057

 

Municipal loans

 

 

5,466

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,466

 

Total

 

$

912,686

 

 

$

5,444

 

 

$

9,485

 

 

$

—

 

 

$

927,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

December 31, 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

 

$

193

 

 

$

48

 

 

$

149

 

 

$

390

 

 

$

15,201

 

 

$

—

 

 

$

15,591

 

 

$

149

 

Commercial and PPP loans

 

 

111

 

 

 

21

 

 

 

54

 

 

 

186

 

 

 

104,569

 

 

 

—

 

 

 

104,755

 

 

 

54

 

Commercial real estate loans

 

 

863

 

 

 

88

 

 

 

190

 

 

 

1,141

 

 

 

537,546

 

 

 

2,227

 

 

 

540,914

 

 

 

—

 

Residential real estate loans

 

 

2,474

 

 

 

137

 

 

 

1,176

 

 

 

3,787

 

 

 

246,863

 

 

 

182

 

 

 

250,832

 

 

 

540

 

Consumer loans

 

 

254

 

 

 

58

 

 

 

—

 

 

 

312

 

 

 

9,745

 

 

 

—

 

 

 

10,057

 

 

 

—

 

Municipal loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,466

 

 

 

—

 

 

 

5,466

 

 

 

—

 

Total

 

$

3,895

 

 

$

352

 

 

$

1,569

 

 

$

5,816

 

 

$

919,390

 

 

$

2,409

 

 

$

927,615

 

 

$

743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 December 31, 2022

 

(In Thousands)

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

Agriculture loans

 

$

300

 

 

$

300

 

 

$

—

 

Commercial loans

 

 

35

 

 

 

55

 

 

 

—

 

Commercial real estate loans

 

 

2,306

 

 

 

2,312

 

 

 

—

 

Residential real estate loans

 

 

4,652

 

 

 

4,683

 

 

 

—

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

Municipal loans

 

 

—

 

 

 

—

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

Agriculture loans

 

$

—

 

 

$

—

 

 

$

—

 

Commercial loans

 

 

20

 

 

 

20

 

 

 

20

 

Commercial real estate loans

 

 

—

 

 

 

—

 

 

 

—

 

Residential real estate loans

 

 

—

 

 

 

—

 

 

 

—

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

Municipal loans

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

 

 

 

 

 

 

 

Agriculture loans

 

$

300

 

 

$

300

 

 

$

—

 

Commercial loans

 

 

55

 

 

 

75

 

 

 

20

 

Commercial real estate loans

 

 

2,306

 

 

 

2,312

 

 

 

—

 

Residential real estate loans

 

 

4,652

 

 

 

4,683

 

 

 

—

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

Municipal loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

7,313

 

 

$

7,370

 

 

$

20

 

 

 

 

 

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 Year Ended December 31,

 

 

 

2022

 

 

2021

 

(In Thousands)

 

Average
Recorded
Investment

 

 

Interest Income Recognized

 

 

Average
Recorded Investment

 

 

Interest Income Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Agriculture loans

 

$

200

 

 

$

9

 

 

$

—

 

 

$

—

 

Commercial loans

 

 

39

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial real estate loans

 

 

2,365

 

 

 

125

 

 

 

—

 

 

 

—

 

Residential real estate loans

 

 

4,772

 

 

 

159

 

 

 

759

 

 

 

20

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Municipal loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

7,376

 

 

 

293

 

 

 

759

 

 

 

20

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Agriculture loans

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial loans

 

 

23

 

 

 

1

 

 

 

—

 

 

 

—

 

Commercial real estate loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential real estate loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Municipal loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

23

 

 

 

1

 

 

 

—

 

 

 

—

 

Total

 

$

7,399

 

 

$

294

 

 

$

759

 

 

$

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Portfolio of Nonaccrual Loans

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

 

(In Thousands)

 

December 31,
2022

 

 

December 31,
2021

 

Commercial and PPP loans

 

$

35

 

 

$

39

 

Commercial real estate loans

 

 

231

 

 

 

144

 

Residential real estate loans

 

 

1,652

 

 

 

449

 

Consumer loans

 

 

—

 

 

 

2

 

Total

 

$

1,918

 

 

$

634

 

 

The above nonaccrual loans as of December 31, 2022 and 2021 exclude PCI loans with balances of $2,409 and $5,556, respectively. Management does not consider these loans to be non-performing as they are accounted for under the accretable yield method and are performing in line with expectations as of December 31, 2022 and 2021.