Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

Allowance for Credit Loss [Abstract]

Summary of Allowance for Credit Losses by Loan Segment

The following tables summarize the activity in the allowance for credit losses by loan segment for the year ended December 31, 2023.

	Beginning balance		Impact of adopting ASC 326			Allowance for credit loss on PCD acquired loans		Charge-offs			Recoveries		Provision for credit losses			Ending balance
(In Thousands)	For the Year Ended December 31, 2023
Allowance for credit losses:
Agriculture and farmland	$	279	$	(190	)	$	—	$	—		$	—	$	(77	)	$	12
Construction		274		513			39		—			—		133			959
Commercial & industrial		583		283			303		(200	)		1		1,970			2,940
Commercial real estate
Multifamily		480		340			97		—			—		566			1,483
Owner occupied		635		760			1,816		—			—		3,361			6,572
Non-owner occupied		1,116		3,195			1,937		—			—		(475	)		5,773
Residential real estate
First liens		1,029		635			42		—			54		3,018			4,778
Second liens and lines of credit		218		140			64		—			61		589			1,072
Municipal		12		(2	)		—		—			—		69			79
Consumer		40		(19	)		5		—			—		73			99
Total	$	4,666	$	5,655		$	4,303	$	(200	)	$	116	$	9,227		$	23,767

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 December 31, 2023
(In Thousands)	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with a related Allowance for Credit Loss		Total Nonaccrual		Loans past due over 89 days still accruing
Agriculture and farmland	$	—	$	—	$	—	$	—
Construction		191		—		191		—
Commercial & industrial		53		8		61		58
Commercial real estate						—
Multifamily		—		—		—		—
Owner occupied		2,465		83		2,548		6
Non-owner occupied		948		281		1,229		—
Residential real estate						—
First liens		2,346		361		2,707		149
Second liens and lines of credit		294		—		294		—
Municipal		—		—		—		—
Consumer		7		—		7		—
Total	$	6,304	$	733	$	7,037	$	213

Summary by Class of Loans, Carrying Value of Collateral Dependent Nonaccrual Loans and Type of Collateral

The following table presents, by class of loans, the carrying value of collateral dependent nonaccrual loans and type of collateral as of December 31, 2023

	December 31, 2023
(In Thousands)	Real Estate		Business Assets		Other		Total
Agriculture and farmland loans	$	—	$	—	$	—	$	—
Construction		191		—		—		191
Commercial & industrial loans		—		61		—		61
Commercial real estate loans
Multifamily		—		—		—		—
Owner occupied		2,548		—		—		2,548
Non-owner occupied		1,229		—		—		1,229
Residential real estate loans
First liens		2,707		—		—		2,707
Second liens and lines of credit		294		—		—		294
Municipal		—		—		—		—
Consumer		—		—		7		7
	$	6,969	$	61	$	7	$	7,037

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 December 31, 2023.

	December 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	$	14	$	—	$	—	$	14	$	65,847	$	65,861
Construction		10		—		191		201		178,282		178,483
Commercial & industrial		46		1		118		165		238,178		238,343
Commercial real estate
Multifamily		—		—		—		—		180,788		180,788
Owner occupied		156		2,802		137		3,095		498,637		501,732
Non-owner occupied		—		86		1,239		1,325		579,647		580,972
Residential real estate
First liens		719		419		872		2,010		400,423		402,433
Second liens and lines of credit		279		128		97		504		70,243		70,747
Municipal		—		—		—		—		16,756		16,756
Consumer		15		15		7		37		5,207		5,244
Total	$	1,239	$	3,451	$	2,661	$	7,351	$	2,234,008	$	2,241,359

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

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, 2023.

	December 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	$	1,466	$	14,372	$	9,613	$	5,147	$	2,319	$	22,627	$	5,114	$	29	$	60,687
Special mention		—		—		30		—		811		1,206		342		—		2,389
Substandard or lower		13		—		15		121		—		2,576		60		—		2,785
Total Agriculture and farmland	$	1,479	$	14,372	$	9,658	$	5,268	$	3,130	$	26,409	$	5,516	$	29	$	65,861
Agriculture and farmland
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		64,460		52,888		30,993		3,057		5,244		5,816		14,424		1,317		178,199
Special mention		—		—		—		—		—		—		93		—		93
Substandard or lower		—		—		—		98		—		—		—		93		191
Total Construction		64,460		52,888		30,993		3,155		5,244		5,816		14,517		1,410		178,483
Construction
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial & industrial
Pass		29,776		33,213		25,315		14,018		4,429		9,110		120,747		68		236,676
Special mention		—		113		139		—		15		4		1,071		—		1,342
Substandard or lower		—		—		47		—		194		—		43		41		325
Total Commercial & industrial		29,776		33,326		25,501		14,018		4,638		9,114		121,861		109		238,343
Commercial & industrial
Current period gross charge-offs		—		—		—		—		—		—		200		—		200
Commercial real estate - Multifamily
Pass		14,918		80,127		50,320		18,871		6,031		8,351		298		—		178,916
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		1,872		—		—		1,872
Total Commercial real estate - Multifamily		14,918		80,127		50,320		18,871		6,031		10,223		298		—		180,788
Commercial real estate - Multifamily
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

	December 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		61,336		135,472		98,261		51,485		39,174		91,315		8,852		6		485,901
Special mention		—		377		3,125		—		6,318		—		429		—		10,249
Substandard or lower		—		—		—		626		2,408		2,391		157		—		5,582
Total Commercial real estate - Owner occupied		61,336		135,849		101,386		52,111		47,900		93,706		9,438		6		501,732
Commercial real estate - Owner occupied
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial real estate - Non-owner occupied
Pass		58,335		174,248		126,009		56,468		64,301		93,193		6,376		86		579,016
Special mention		—		—		42		—		—		—		—		—		42
Substandard or lower		—		—		325		—		56		1,284		249		—		1,914
Total Commercial real estate - Non-owner occupied		58,335		174,248		126,376		56,468		64,357		94,477		6,625		86		580,972
Commercial real estate - Non-owner occupied
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Municipal
Pass		529		—		420		1,675		—		2,526		94		—		5,244
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		—		—		—		—
Total Commercial real estate - Municipal		529		—		420		1,675		—		2,526		94		—		5,244
Municipal
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Total
Pass	$	230,820	$	490,320	$	340,931	$	150,721	$	121,498	$	232,938	$	155,905	$	1,506	$	1,724,639
Special mention		—		490		3,336		—		7,144		1,210		1,935		—		14,115
Substandard or lower		13		—		387		845		2,658		8,123		509		134		12,669
Total	$	230,833	$	490,810	$	344,654	$	151,566	$	131,300	$	242,271	$	158,349	$	1,640	$	1,751,423

	December 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	$	45,236	$	99,877	$	99,972	$	43,063	$	23,404	$	80,456	$	8,982	$	—	$	400,990
Nonperforming		—		—		33		101		208		1,101		—		—		1,443
Total Residential real estate - First liens	$	45,236	$	99,877	$	100,005	$	43,164	$	23,612	$	81,557	$	8,982	$	—	$	402,433
Residential real estate - First liens
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate - Second liens and lines of credit
Performing		1,207		1,818		386		184		336		2,270		64,396		—		70,597
Nonperforming		—		—		—		—		—		—		150		—		150
Total Residential real estate - Second liens and lines of credit		1,207		1,818		386		184		336		2,270		64,546		—		70,747
Residential real estate - Second liens and lines of credit
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer and other
Performing		5,007		437		223		153		73		88		10,770		—		16,751
Nonperforming		—		—		—		—		—		—		5		—		5
Total Consumer and other		5,007		437		223		153		73		88		10,775		—		16,756
Consumer and other
Current period gross charge-offs		—		—		—		—		—		—		1		—		1
Total
Performing	$	51,450	$	102,132	$	100,581	$	43,400	$	23,813	$	82,814	$	84,148	$	—	$	488,338
Nonperforming		—		—		33		101		208		1,101		155		—		1,598
Total	$	51,450	$	102,132	$	100,614	$	43,501	$	24,021	$	83,915	$	84,303	$	—	$	489,936

Schedule Of Credit Deteriorated Loans

The Company has purchased loans for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of these loans is as follows.

(In Thousands)	2023
Purchase price of loans at acquisition	$	431,600
Allowance for credit losses at acquisition		4,303
Non-credit (discount) premium at acquisition		(16,981	)
Par value of acquired loans at acquisition	$	418,922

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 year ended 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)	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		$	—		$	4,666

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 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
Accretable yield, beginning of period	$	307
Additions		—
Accretion of income		(151	)
Reclassifications from nonaccretable difference due to improvement in expected cash flows		—
Other changes, net		(156	)
Accretable yield, end of period	$	—

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 Year Ended December 31,
	2022
(In Thousands)	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
Consumer loans		—		—
Municipal loans		—		—
		7,376		293
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

Summary of Portfolio of Nonaccrual Loans

The following table present 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
Total	$	1,918