Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Allowance for Credit Loss [Abstract]

Summary of Allowance for Credit Losses by Loan Segment

The following table summarizes the activity in the allowance for credit losses by loan segment for the three months ended March 31, 2023.

	Beginning balance, prior to adoption of ASC 326		Impact of adopting ASC 326			Charge-offs		Recoveries		Provision for credit losses			Ending balance
(In Thousands)	For the Three Months Ended March 31, 2023
Allowance for credit losses:
Agriculture and farmland	$	279	$	(190	)	$	-	$	-	$	119		$	208
Construction		274		513			-		-		26			813
Commercial & industrial		583		283			-		-		64			930
Commercial real estate											-
Multifamily		480		340			-		-		(90	)		730
Owner occupied		635		760			-		-		198			1,593
Non-owner occupied		1,116		3,195			-		-		4			4,315
Residential real estate											-
First liens		1,029		635			-		1		(157	)		1,508
Second liens and lines of credit		218		140			-		1		43			402
Municipal		12		(2	)		-		-		(3	)		7
Consumer		40		(19	)		-		-		(1	)		20
Total	$	4,666	$	5,655		$	-	$	2	$	203		$	10,526

Summary of Amortized Cost Basis of Nonaccrual Loans and Loans Past due Over 89 Days Still Accruing

The following table presents the amortized cost basis of nonaccrual loans and loans past due over 89 days still accruing by segments of the loan portfolio:

	As of March 31, 2023
(In Thousands)	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with a related Allowance for Credit Loss		Loans past due over 89 days still accruing
Agriculture and farmland	$	—	$	781	$	—
Construction		—		—		—
Commercial & industrial		16		—		35
Commercial real estate
Multifamily		—		—		—
Owner occupied		—		—		—
Non-owner occupied		50		140		50
Residential real estate
First liens		364		811		20
Second liens and lines of credit		39		7		105
Municipal		—		—		—
Consumer		54		—		57
Total	$	523	$	1,739	$	267

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

The following table presents an aging analysis of the recorded investment of past due loans at March 31, 2023.

	March 31, 2023
(In Thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total   Loans
Agriculture and farmland	$	36	$	-	$	-	$	36	$	53,265	$	53,301
Construction		-		-		-		-		67,934		67,934
Commercial & industrial		221		293		35		549		98,807		99,356
Commercial real estate
Multifamily		1,013		-		-		1,013		110,448		111,461
Owner occupied		413		-		-		413		150,994		151,407
Non-owner occupied		-		88		190		278		249,360		249,638
Residential real estate
First liens		883		490		602		1,975		164,503		166,478
Second liens and lines of credit		103		-		129		232		30,488		30,720
Municipal		-		-		-		-		10,472		10,472
Consumer		9		1		57		67		4,225		4,292
Total	$	2,678	$	872	$	1,013	$	4,563	$	940,496	$	945,059

The following table presents an aging analysis of the recorded investment of past due loans at December 31, 2022.

	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

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 March 31, 2023.

	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Agriculture and farmland
Pass	$	659	$	14,941	$	5,381	$	5,614	$	3,636	$	15,143	$	4,706	$	—	$	50,080
Special mention		—		—		—		—		—		—		15		—		15
Substandard or lower		—		—		—		264		65		2,876		1		—		3,206
Total Agriculture and farmland	$	659	$	14,941	$	5,381	$	5,878	$	3,701	$	18,019	$	4,722	$	—	$	53,301
Agriculture and farmland
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		1,730		30,869		9,442		931		5,538		1,811		17,613		—		67,934
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		—		—		—		—
Total Construction		1,730		30,869		9,442		931		5,538		1,811		17,613		—		67,934
Construction
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial & industrial
Pass		3,788		14,696		8,602		10,903		2,573		770		55,785		570		97,687
Special mention		—		—		242		—		—		505		892		—		1,639
Substandard or lower		15		—		—		—		14		—		1		—		30
Total Commercial & industrial		3,803		14,696		8,844		10,903		2,587		1,275		56,678		570		99,356
Commercial & industrial
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial real estate - Multifamily
Pass		2,200		44,429		44,855		11,506		6,047		432		81		—		109,550
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		1,911		—		—		1,911
Total Commercial real estate - Multifamily		2,200		44,429		44,855		11,506		6,047		2,343		81		—		111,461
Commercial real estate - Multifamily
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial real estate - Owner occupied
Pass		12,514		63,935		25,014		15,887		19,784		6,035		2,177		—		145,346
Special mention		—		—		—		—		1,359		304		64		—		1,727
Substandard or lower		—		—		1,527		—		2,189		339		279		—		4,334
Total Commercial real estate - Owner occupied		12,514		63,935		26,541		15,887		23,332		6,678		2,520		—		151,407
Commercial real estate - Owner occupied
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial real estate - Non-owner occupied
Pass		10,101		97,256		59,740		21,160		32,957		13,571		8,382		—		243,167
Special mention		—		—		—		—		6,281		—		—		—		6,281
Substandard or lower		—		—		50		—		140		—		—		—		190
Total Commercial real estate - Non-owner occupied		10,101		97,256		59,790		21,160		39,378		13,571		8,382		—		249,638
Commercial real estate - Non-owner occupied
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Municipal
Pass		—		126		323		1,787		—		1,975		81		—		4,292
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		—		—		—		—
Total Commercial real estate - Municipal		—		126		323		1,787		—		1,975		81		—		4,292
Municipal
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Total
Pass	$	30,992	$	266,252	$	153,357	$	67,788	$	70,535	$	39,737	$	88,825	$	570	$	718,056
Special mention		—		—		242		—		7,640		809		971		—		9,662
Substandard or lower		15		—		1,577		264		2,408		5,126		281		—		9,671
Total	$	31,007	$	266,252	$	155,176	$	68,052	$	80,583	$	45,672	$	90,077	$	570	$	737,389

The following tables present the amortized cost of these loans based on payment activity, by origination year:

	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Residential real estate - First liens
Performing	$	4,571	$	45,639	$	49,399	$	20,674	$	12,214	$	32,656	$	—	$	—	$	165,153
Nonperforming		—		—		—		—		232		1,093		—		—		1,325
Total Residential real estate - First liens	$	4,571	$	45,639	$	49,399	$	20,674	$	12,446	$	33,749	$	—	$	—	$	166,478
Residential real estate - First liens
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate - Second liens and lines of credit
Performing		97		702		753		1,189		441		1,740		25,536		—		30,458
Nonperforming		—		—		—		—		—		149		105		8		262
Total Residential real estate - Second liens and lines of credit		97		702		753		1,189		441		1,889		25,641		8		30,720
Residential real estate - Second liens and lines of credit
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer and other
Performing		1,516		2,978		98		93		29		35		5,666		—		10,415
Nonperforming		—		2		—		—		49		6		—		—		57
Total Consumer and other		1,516		2,980		98		93		78		41		5,666		—		10,472
Consumer and other
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Total
Performing	$	6,184	$	49,319	$	50,250	$	21,956	$	12,684	$	34,431	$	31,202	$	—	$	206,026
Nonperforming		—		2		—		—		281		1,248		105		8		1,644
Total	$	6,184	$	49,321	$	50,250	$	21,956	$	12,965	$	35,679	$	31,307	$	8	$	207,670

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 period ended March 31, 2022.

	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 Three Months Ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	23		$	582	$	799	$	1,634	$	22		$	15	$	77		$	3,152
Charge-offs		—			—		—		—		—			—		—			—
Recoveries		—			2		—		7		2			—		—			11
Provision		(3	)		1		271		87		(11	)		—		(65	)		280
Ending balance	$	20		$	585	$	1,070	$	1,728	$	13		$	15	$	12		$	3,443

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.

	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

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:

(In Thousands)			Special
As of December 31, 2022	Pass		Mention		Substandard		Doubtful		Total
Agriculture loans	$	15,291	$	—	$	300	$	—	$	15,591
Commercial and PPP		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

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

	For the Three Months Ended March 31,
	2022
(In Thousands)	Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Agriculture loans	$	249	$	3
Commercial loans		37		—
Commercial real estate loans		181		3
Residential real estate loans		1,902		17
Consumer loans		—		—
Municipal loans		—		—
		2,369		23
With an allowance recorded:
Agriculture loans	$	—	$	—
Commercial loans		—		—
Commercial real estate loans		—		—
Residential real estate loans		4		—
Consumer loans		—		—
Municipal loans		—		—
		4		-
Total	$	2,373	$	23

Summary of Portfolio of Nonaccrual Loans

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

(In Thousands)	December 31, 2022
Commercial and PPP loans	$	35
Commercial real estate loans		231
Residential real estate loans		1,652
Consumer loans		—
Total	$	1,918