Loans (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Loan by Class

	2022			2021
(In Thousands of Dollars)
Commercial real estate
Owner occupied	$	330,768		$	340,369
Non-owner occupied		563,652			533,240
Farmland		188,850			177,706
Other		133,630			138,282
Commercial
Commercial and industrial		293,643			313,836
Agricultural		58,087			54,659
Residential real estate
1-4 family residential		475,791			453,635
Home equity lines of credit		132,179			127,433
Consumer
Indirect		197,125			159,006
Direct		16,421			21,121
Other		7,714			9,395
Total originated loans	$	2,397,860		$	2,328,682
Net deferred loan costs		6,890			2,400
Allowance for credit losses		(26,978	)		(29,386	)
Net loans	$	2,377,772		$	2,301,696

Activity in the Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for credit losses by portfolio segment for years ended December 31, 2022 and 2021, and the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2020:

December 31, 2022	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
(In Thousands of Dollars)
Allowance for credit losses
Beginning balance	$	15,879		$	4,949		$	4,870		$	3,688		$	29,386
Provision for credit losses		(742	)		1,204			(493	)		281			250
Loans charged off		(300	)		(2,042	)		(92	)		(870	)		(3,304	)
Recoveries		3			75			89			479			646
Total ending allowance balance	$	14,840		$	4,186		$	4,374		$	3,578		$	26,978

December 31, 2021	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	10,746		$	5,018		$	3,687		$	2,693		$	22,144
Impact of CECL adoption		(2,137	)		259			193			3,845			2,160
Provision for credit losses		6,226			(349	)		1,121			(2,349	)		4,649
PCD ACL on loans acquired		1,081			210			4			0			1,295
Loans charged off		(70	)		(388	)		(297	)		(912	)		(1,667	)
Recoveries		33			199			162			411			805
Total ending allowance balance	$	15,879		$	4,949		$	4,870		$	3,688		$	29,386

December 31, 2020	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for loan losses
Beginning balance	$	6,127		$	2,443		$	3,032		$	2,885		$	14,487
Provision for loan losses		4,710			2,976			742			672			9,100
Loans charged off		(122	)		(412	)		(172	)		(1,347	)		(2,053	)
Recoveries		31			11			85			483			610
Total ending allowance balance	$	10,746		$	5,018		$	3,687		$	2,693		$	22,144

Schedule of Investment in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of December 31, 2022 and 2021:

	2022				2021
	Nonaccrual		Loans Past Due 90 Days or More Still Accruing		Nonaccrual		Loans Past Due 90 Days or More Still Accruing
(In Thousands of Dollars)
Commercial real estate
Owner occupied	$	993	$	0	$	433	$	0
Non-owner occupied		3,031		0		2,511		0
Farmland		2,183		0		274		0
Other		33				60
Commercial
Commercial and industrial		3,840		50		7,190		54
Agricultural		299		0		40		0
Residential real estate
1-4 family residential		2,703		310		3,363		459
Home equity lines of credit		735		58		917		36
Consumer
Indirect		313		62		455		123
Direct		179		12		227		53
Other		2		0		0		0
Total loans	$	14,311	$	492	$	15,470	$	725

Schedule of Investment in Past Due Loans

The following tables present the aging of the recorded investment in past due loans as of December 31, 2022 and 2021 by class of loans.

December 31, 2022	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
(In Thousands of Dollars)
Commercial real estate
Owner occupied	$	159	$	0	$	993	$	1,152	$	329,305	$	330,457
Non-owner occupied		0		0		3,031		3,031		560,013		563,044
Farmland		0		0		2,183		2,183		186,399		188,582
Other		0		0		33		33		133,288		133,321
Commercial
Commercial and industrial		1,034		185		3,890		5,109		289,297		294,406
Agricultural		104		20		299		423		58,166		58,589
Residential real estate
1-4 family residential		4,247		1,775		3,013		9,035		466,313		475,348
Home equity lines of credit		115		92		793		1,000		131,209		132,209
Consumer
Indirect		1,267		298		375		1,940		202,683		204,623
Direct		234		70		191		495		15,962		16,457
Other		0		5		2		7		7,707		7,714
Total loans	$	7,160	$	2,445	$	14,803	$	24,408	$	2,380,342	$	2,404,750

December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
Commercial real estate
Owner occupied	$	70	$	591	$	433	$	1,094	$	338,880	$	339,974
Non-owner occupied		394		311		2,511		3,216		529,490		532,706
Farmland		0		0		274		274		177,143		177,417
Other		56		0		60		116		137,878		137,994
Commercial
Commercial and industrial		256		100		7,244		7,600		304,932		312,532
Agricultural		100		28		40		168		54,706		54,874
Residential real estate
1-4 family residential		4,452		1,077		3,822		9,351		443,441		452,792
Home equity lines of credit		80		12		953		1,045		126,405		127,450
Consumer
Indirect		795		275		578		1,648		163,112		164,760
Direct		203		91		280		574		20,614		21,188
Other		0		0		0		0		9,395		9,395
Total loans:	$	6,406	$	2,485	$	16,195	$	25,086	$	2,305,996	$	2,331,082

Schedule of Loans By Class Modified as Troubled Debt Restructurings

he following tables present loans by class modified as troubled debt restructurings that occurred during the years ending December 31, 2022, 2021 and 2020:

			Pre- Modification		Post- Modification
December 31, 2022	Number of		Outstanding Recorded		Outstanding Recorded
Troubled Debt Restructurings:	Loans		Investment		Investment
Commercial real estate
Owner occupied		2	$	717	$	717
Commercial
Commercial and industrial		2		1,245		1,241
Residential real estate
1-4 family residential		10		534		553
Home equity lines of credit		4		58		59
Indirect		10		69		69
Consumer		3		97		97
Total loans		31	$	2,720	$	2,736

			Pre- Modification		Post- Modification
December 31, 2021	Number of		Outstanding Recorded		Outstanding Recorded
Troubled Debt Restructurings:	Loans		Investment		Investment
Commercial
Commercial and industrial		4	$	22	$	22
Residential real estate
1-4 family residential		11		636		624
Home equity lines of credit		7		264		264
Indirect		13		124		124
Consumer		4		17		17
Total loans		39	$	1,063	$	1,051

			Pre- Modification		Post- Modification
December 31, 2020	Number of		Outstanding Recorded		Outstanding Recorded
Troubled Debt Restructurings:	Loans		Investment		Investment
Commercial
Agricultural		1	$	21	$	21
Residential real estate
1-4 family residential		10		401		406
Home equity lines of credit		4		100		102
Indirect		29		182		182
Consumer		1		15		15
Total originated loans		45	$	719	$	726

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

December 31, 2022	Pass		Special Mention		Sub standard		Total
(In Thousands of Dollars)
Commercial real estate
Owner occupied	$	324,979	$	1,193	$	4,285	$	330,457
Non-owner occupied		527,267		25,541		10,236		563,044
Farmland		186,057		0		2,525		188,582
Other		133,218		0		103		133,321
Commercial
Commercial and industrial		282,412		777		11,217		294,406
Agricultural		58,002		250		337		58,589
Total loans	$	1,511,935	$	27,761	$	28,703	$	1,568,399

December 31, 2021	Pass		Special Mention		Sub standard		Total
Commercial real estate
Owner occupied	$	330,754	$	5,006	$	4,214	$	339,974
Non-owner occupied		495,170		19,366		18,170		532,706
Farmland		174,580		2,160		677		177,417
Other		137,063		784		147		137,994
Commercial
Commercial and industrial		301,879		1,190		9,463		312,532
Agricultural		54,394		397		83		54,874
Total loans	$	1,493,840	$	28,903	$	32,754	$	1,555,497

Investment in Residential, Consumer and Indirect Auto Loans Based on Payment Activity

The following table presents the recorded investment in residential, consumer and indirect auto loans based on payment activity. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans.

	Residential Real Estate				Consumer
December 31, 2022	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
(In Thousands of Dollars)
Performing	$	472,335	$	131,416	$	204,248	$	16,266	$	7,712
Nonperforming		3,013		793		375		191		2
Total loans	$	475,348	$	132,209	$	204,623	$	16,457	$	7,714

	Residential Real Estate				Consumer
December 31, 2021	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
Performing	$	448,970	$	126,497	$	164,182	$	20,908	$	9,395
Nonperforming		3,822		953		578		280		0
Total loans	$	452,792	$	127,450	$	164,760	$	21,188	$	9,395

Risk Categories and Year of Origination

The following table presents total loans by risk categories and year of origination.

	Term Loans Amortized Cost Basis by Origination Year
As of December 31	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
Commercial real estate
Risk Rating
Pass	$	188,240	$	174,841	$	120,883	$	138,342	$	89,769	$	256,103	$	17,286	$	985,464
Special mention		0		711		1,861		5,286		624		18,252		0		26,734
Substandard		0		18		256		1,968		267		10,952		1,163		14,624
Total commercial real estate loans	$	188,240	$	175,570	$	123,000	$	145,596	$	90,660	$	285,307	$	18,449	$	1,026,822
Commercial
Risk Rating
Pass	$	100,368	$	45,872	$	34,110	$	16,854	$	13,574	$	14,664	$	56,970	$	282,412
Special mention		0		197		0		0		0		0		580		777
Substandard		3,642		1,331		356		152		110		1,761		3,865		11,217
Total commercial loans	$	104,010	$	47,400	$	34,466	$	17,006	$	13,684	$	16,425	$	61,415	$	294,406
Agricultural
Risk Rating
Pass	$	51,096	$	36,376	$	44,133	$	23,661	$	24,003	$	45,490	$	19,300	$	244,059
Special mention		0		0		0		0		0		0		250		250
Substandard		0		379		235		72		0		2,146		30		2,862
Total agricultural loans	$	51,096	$	36,755	$	44,368	$	23,733	$	24,003	$	47,636	$	19,580	$	247,171
Residential real estate
Risk Rating
Pass	$	83,951	$	112,463	$	76,095	$	31,404	$	22,918	$	135,757	$	3,956	$	466,544
Special mention		0		0		70		118		76		93		0		357
Substandard		0		136		249		121		9		7,932		0		8,447
Total residential real estate loans	$	83,951	$	112,599	$	76,414	$	31,643	$	23,003	$	143,782	$	3,956	$	475,348
Home equity lines of credit
Risk Rating
Pass	$	0	$	10	$	0	$	0	$	16	$	1,394	$	128,622	$	130,042
Special mention		0		0		0		0		0		0		49		49
Substandard		0		13		137		20		0		1,848		100		2,118
Total home equity lines of credit	$	0	$	23	$	137	$	20	$	16	$	3,242	$	128,771	$	132,209
Consumer
Risk Rating
Pass	$	98,530	$	46,945	$	32,284	$	20,849	$	10,918	$	10,942	$	7,302	$	227,770
Special mention		0		0		0		0		0		0		0		0
Substandard		102		113		267		230		109		202		1		1,024
Total consumer loans	$	98,632	$	47,058	$	32,551	$	21,079	$	11,027	$	11,144	$	7,303	$	228,794

Summary of Loan Pools and Methodology Used in Calculation of Allowance for Credit Losses

The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2022.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family Residential Real Estate - 1st Liens	Cohort	Credit Loss History
	1-4 Family Residential Real Estate - 2nd Liens	Cohort	Credit Loss History
Home Equity Lines of Credit	Home Equity Lines of Credit	Cohort	Credit Loss History
Consumer Finance	Cash Reserves	Cohort	Credit Loss History
	Direct	Cohort	Credit Loss History
	Indirect	Cohort	Credit Loss History
Commercial	Commercial and Industrial	PD/LGD	Credit Loss History
	Agricultural	PD/LGD	Credit Loss History
	Municipal	PD/LGD	Credit Loss History
Commercial real estate	Owner Occupied	PD/LGD	Credit Loss History
	Non-Owner Occupied	PD/LGD	Credit Loss History
	Multifamily	PD/LGD	Credit Loss History
	Farmland	PD/LGD	Credit Loss History
	Construction	PD/LGD	Credit Loss History

Schedule of Outstanding Balance and Related Allowance on Loans

The outstanding balance at December 31, 2022 and related allowance on these loans is as follows (in thousands):

	Loan Balance		ACL Balance
Commercial real estate
Owner Occupied	$	1,480	$	15
Non-owner Occupied		19,292		346
		20,772		361
Commercial
Commercial and industrial		1,644		35
Residential real estate
1-4 family residential		465		3
Total	$	22,881	$	399