Credit Quality Indicators (Tables)

3 Months Ended

Mar. 31, 2024

Risks and Uncertainties [Abstract]

Risk Category of Loans by Class of Loans

As of March 31, 2024 and December 31, 2023, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Total
March 31, 2024
Commercial real estate
Owner occupied	$	378,483	$	8,237	$	3,107	$	389,827
Non-owner occupied		643,226		28,110		33,366		704,702
Farmland		199,187		0		2,387		201,574
Other		235,405		0		8,333		243,738
Commercial
Commercial and industrial		323,823		1,955		11,437		337,215
Agricultural		58,893		0		512		59,405
Total loans	$	1,839,017	$	38,302	$	59,142	$	1,936,461

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Total
December 31, 2023
Commercial real estate
Owner occupied	$	386,015	$	9,628	$	3,385	$	399,028
Non-owner occupied		648,063		27,938		35,794		711,795
Farmland		200,240		0		2,486		202,726
Other		215,459		0		8,318		223,777
Commercial
Commercial and industrial		334,764		646		12,409		347,819
Agricultural		58,506		17		552		59,075
Total loans	$	1,843,047	$	38,229	$	62,944	$	1,944,220

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

The following tables present the recorded investment in residential, consumer indirect and direct auto loans based on payment activity as of March 31, 2024 and December 31, 2023. Nonperforming loans are loans past due 90 days or more and still accruing interest and nonaccrual loans.

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
March 31, 2024
Performing	$	831,792	$	143,297	$	232,614	$	22,513	$	9,288
Nonperforming		4,413		445		353		138		4
Total loans	$	836,205	$	143,742	$	232,967	$	22,651	$	9,292

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
December 31, 2023
Performing	$	839,744	$	141,952	$	234,439	$	23,690	$	9,159
Nonperforming		3,817		519		447		135		5
Total loans	$	843,561	$	142,471	$	234,886	$	23,825	$	9,164

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

	Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	1,479	$	59,963	$	57,271	$	65,103	$	42,060	$	150,109	$	2,498	$	378,483
Special mention		0		0		0		0		7,691		546		0		8,237
Substandard		0		0		292		0		8		2,616		191		3,107
Total commercial real estate - Owner occupied loans	$	1,479	$	59,963	$	57,563	$	65,103	$	49,759	$	153,271	$	2,689	$	389,827
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	5,408	$	49,933	$	132,435	$	87,279	$	75,428	$	283,327	$	9,416	$	643,226
Special mention		0		0		0		12,356		0		15,754		0		28,110
Substandard		0		0		0		3,969		8,784		20,193		420		33,366
Total commercial real estate - Non-owner occupied loans	$	5,408	$	49,933	$	132,435	$	103,604	$	84,212	$	319,274	$	9,836	$	704,702
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	146	$	0	$	0	$	146
Commercial real estate - Farmland:
Risk Rating
Pass	$	6,190	$	20,108	$	39,777	$	20,697	$	33,232	$	76,455	$	2,728	$	199,187
Special mention		0		0		0		0		0		0		0		0
Substandard		0		0		0		326		0		2,061		0		2,387
Total commercial real estate - Farmland loans	$	6,190	$	20,108	$	39,777	$	21,023	$	33,232	$	78,516	$	2,728	$	201,574
Commercial real estate - Farmland: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - Other:
Risk Rating
Pass	$	2,938	$	82,299	$	66,062	$	47,106	$	8,961	$	26,730	$	1,309	$	235,405
Special mention		0		0		0		0		0		0		0		0
Substandard		0		0		0		0		8,214		119		0		8,333
Total commercial real estate - Other loans	$	2,938	$	82,299	$	66,062	$	47,106	$	17,175	$	26,849	$	1,309	$	243,738
Commercial real estate - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	10,519	$	87,678	$	77,841	$	35,474	$	18,454	$	28,830	$	65,027	$	323,823
Special mention		0		0		124		271		0		0		1,560		1,955
Substandard		0		63		3,529		1,014		215		1,426		5,190		11,437
Total commercial - Commercial and industrial loans	$	10,519	$	87,741	$	81,494	$	36,759	$	18,669	$	30,256	$	71,777	$	337,215
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	88	$	31	$	18	$	17	$	126	$	313	$	593
Commercial - Agricultural:
Risk Rating
Pass	$	2,424	$	13,792	$	16,247	$	7,888	$	3,233	$	1,953	$	13,356	$	58,893
Special mention		0		0		0		0		0		0		0		0
Substandard		0		2		32		120		216		142		0		512
Total commercial - Agricultural loans	$	2,424	$	13,794	$	16,279	$	8,008	$	3,449	$	2,095	$	13,356	$	59,405
Commercial - Agricultural: Current period gross write-offs	$	0	$	0	$	36	$	13	$	0	$	1	$	0	$	50
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	8,844	$	68,468	$	166,790	$	162,223	$	129,972	$	291,498	$	3,997	$	831,792
Nonperforming		0		0		252		451		1,795		1,915		0		4,413
Total residential real estate - 1-4 family residential loans	$	8,844	$	68,468	$	167,042	$	162,674	$	131,767	$	293,413	$	3,997	$	836,205
Residential real estate - 1-4 family residential: Current period gross write-offs	$	0	$	0	$	0	$	21	$	0	$	9	$	0	$	30
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	101	$	19	$	131	$	110	$	3,359	$	139,577	$	143,297
Nonperforming		0		0		29		0		0		416		0		445
Total residential real estate - Home equity lines of credit loans	$	0	$	101	$	48	$	131	$	110	$	3,775	$	139,577	$	143,742
Residential real estate - Home equity lines of credit: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	16,160	$	70,594	$	66,018	$	30,083	$	19,262	$	30,497	$	0	$	232,614
Nonperforming		0		21		118		107		44		63		0		353
Total consumer - Indirect loans	$	16,160	$	70,615	$	66,136	$	30,190	$	19,306	$	30,560	$	0	$	232,967
Consumer - Indirect: Current period gross write-offs	$	10	$	11	$	41	$	106	$	77	$	119	$	0	$	364
Consumer - Direct:
Payment Performance
Performing	$	877	$	3,244	$	3,366	$	1,912	$	1,187	$	11,576	$	351	$	22,513
Nonperforming		0		5		7		18		66		42		0		138
Total consumer - Direct loans	$	877	$	3,249	$	3,373	$	1,930	$	1,253	$	11,618	$	351	$	22,651
Consumer - Direct: Current period gross write-offs	$	0	$	0	$	12	$	0	$	2	$	40	$	0	$	54
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	1	$	60	$	101	$	324	$	8,802	$	9,288
Nonperforming		0		0		0		0		0		4		0		4
Total consumer - Other loans	$	0	$	0	$	1	$	60	$	101	$	328	$	8,802	$	9,292
Consumer - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	45	$	0	$	45

	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	57,983	$	58,178	$	66,205	$	42,023	$	48,849	$	109,831	$	2,946	$	386,015
Special mention		0		293		0		8,779		0		556		0		9,628
Substandard		0		0		0		10		490		2,701		184		3,385
Total commercial real estate - Owner occupied loans	$	57,983	$	58,471	$	66,205	$	50,812	$	49,339	$	113,088	$	3,130	$	399,028
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	1	$	0	$	0	$	1
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	49,177	$	135,433	$	88,188	$	77,713	$	81,079	$	205,729	$	10,744	$	648,063
Special mention		0		0		12,156		0		6,565		9,217		0		27,938
Substandard		0		0		3,972		10,037		3,492		17,794		499		35,794
Total commercial real estate - Non-owner occupied loans	$	49,177	$	135,433	$	104,316	$	87,750	$	91,136	$	232,740	$	11,243	$	711,795
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	144	$	201	$	0	$	345
Commercial real estate - Farmland:
Risk Rating
Pass	$	22,576	$	40,101	$	20,890	$	34,036	$	18,634	$	59,900	$	4,103	$	200,240
Special mention		0		0		0		0		0		0		0		0
Substandard		0		0		330		0		26		2,130		0		2,486
Total commercial real estate - Farmland loans	$	22,576	$	40,101	$	21,220	$	34,036	$	18,660	$	62,030	$	4,103	$	202,726
Commercial real estate - Farmland: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	3	$	0	$	3
Commercial real estate - Other:
Risk Rating
Pass	$	68,911	$	56,753	$	47,895	$	9,063	$	8,516	$	23,269	$	1,052	$	215,459
Special mention		0		0		0		0		0		0		0		0
Substandard		0		0		0		8,186		0		132		0		8,318
Total commercial real estate - Other loans	$	68,911	$	56,753	$	47,895	$	17,249	$	8,516	$	23,401	$	1,052	$	223,777
Commercial real estate - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	90,807	$	85,255	$	40,444	$	21,794	$	9,736	$	23,030	$	63,698	$	334,764
Special mention		0		141		355		21		0		0		129		646
Substandard		195		3,551		980		404		1,077		699		5,503		12,409
Total commercial - Commercial and industrial loans	$	91,002	$	88,947	$	41,779	$	22,219	$	10,813	$	23,729	$	69,330	$	347,819
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	178	$	579	$	11	$	16	$	394	$	0	$	1,178
Commercial - Agricultural:
Risk Rating
Pass	$	13,738	$	17,368	$	8,917	$	3,584	$	1,386	$	1,133	$	12,380	$	58,506
Special mention		0		0		0		0		0		0		17		17
Substandard		0		33		118		225		24		152		0		552
Total commercial - Agricultural loans	$	13,738	$	17,401	$	9,035	$	3,809	$	1,410	$	1,285	$	12,397	$	59,075
Commercial - Agricultural: Current period gross write-offs	$	0	$	15	$	70	$	3	$	0	$	6	$	0	$	94
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	63,365	$	171,862	$	164,469	$	132,989	$	49,380	$	254,027	$	3,652	$	839,744
Nonperforming		37		58		312		1,645		115		1,650		0		3,817
Total residential real estate - 1-4 family residential loans	$	63,402	$	171,920	$	164,781	$	134,634	$	49,495	$	255,677	$	3,652	$	843,561
Residential real estate - 1-4 family residential: Current period gross write-offs	$	52	$	0	$	49	$	130	$	0	$	129	$	0	$	360
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	19	$	14	$	111	$	51	$	3,302	$	138,455	$	141,952
Nonperforming		0		26		13		15		0		465		0		519
Total residential real estate - Home equity lines of credit loans	$	0	$	45	$	27	$	126	$	51	$	3,767	$	138,455	$	142,471
Residential real estate - Home equity lines of credit: Current period gross write-offs	$	0	$	0	$	0	$	8	$	0	$	16	$	0	$	24

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	74,425	$	71,705	$	32,528	$	21,163	$	11,395	$	23,223	$	0	$	234,439
Nonperforming		54		108		138		85		26		36		0		447
Total consumer - Indirect loans	$	74,479	$	71,813	$	32,666	$	21,248	$	11,421	$	23,259	$	0	$	234,886
Consumer - Indirect: Current period gross write-offs	$	33	$	138	$	71	$	35	$	23	$	232	$	0	$	532
Consumer - Direct:
Payment Performance
Performing	$	3,552	$	3,812	$	2,203	$	1,352	$	974	$	11,431	$	366	$	23,690
Nonperforming		0		17		-		65		-		53		0		135
Total consumer - Direct loans	$	3,552	$	3,829	$	2,203	$	1,417	$	974	$	11,484	$	366	$	23,825
Consumer - Direct: Current period gross write-offs	$	11	$	38	$	22	$	51	$	9	$	100	$	0	$	231
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	60	$	103	$	82	$	278	$	8,636	$	9,159
Nonperforming		0		0		0		0		0		5		0		5
Total consumer - Other loans	$	0	$	0	$	60	$	103	$	82	$	283	$	8,636	$	9,164
Consumer - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	20	$	149	$	169

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 2024.

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 March 31, 2024 and related allowance on PCD loans is as follows:

	Loan Balance		ACL Balance
Commercial real estate
Owner Occupied	$	386	$	17
Non-owner Occupied		30,441		618
Farmland		7		0
Commercial
Commercial and industrial		1,960		132
Agricultural		117		7
Residential real estate
1-4 family residential		1,182		6
Home equity lines of credit		3		0
Total	$	34,096	$	780