LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2023

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of classes of the loan portfolio summarized by risk rating

(Dollars in thousands)
		2023		2022		2021		2020		2019		Prior		Total
Real Estate:
1-6 Pass	$	16,448		190,287		147,558		122,136		60,136		209,865	$	746,430
7    Special Mention		—		—		—		—		—		634		634
8    Substandard		—		17		822		—		9,357		9,132		19,328
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		88		271		189		131		(12)		1		668
Total Real Estate Loans	$	16,536	$	190,575	$	148,569	$	122,267	$	69,481	$	219,632	$	767,060
Agricultural:
1-6 Pass	$	—		73		2		—		—		706	$	781
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		—		1		—		—		—		1		2
Total Agricultural Loans	$	—	$	74	$	2	$	—	$	—	$	707	$	783
Commercial and Industrial:
1-6 Pass	$	4,088		11,004		6,183		7,358		5,983		22,532	$	57,148
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		716		716
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		22		116		35		21		221		1		416
Total Commercial and Industrial Loans	$	4,110	$	11,120	$	6,218	$	7,379	$	6,204	$	23,249	$	58,280
Consumer:
1-6 Pass	$	922		1,750		1,424		361		293		1,028	$	5,778
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		12		31		13		5		4		1		66
Total Consumer Loans	$	934	$	1,781	$	1,437	$	366	$	297	$	1,029	$	5,844
State and Political Subdivisions:
1-6 Pass	$	—		5,442		15,098		1,977		—		7,692	$	30,209
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—

Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		—		2		4		1		—		—		7
Total State and Political Subdivision Loans	$	—	$	5,444	$	15,102	$	1,978	$	—	$	7,692	$	30,216
Total Loans:
1-6 Pass	$	21,458	$	208,556	$	170,265	$	131,832	$	66,412	$	241,823	$	840,346
7    Special Mention		—		—		—		—		—		634		634
8    Substandard		—		17		822		—		9,357		9,848		20,044
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		122		421		241		158		213		4		1,159
Total Loans	$	21,580	$	208,994	$	171,328	$	131,990	$	75,982	$	252,309	$	862,183
		2023		2022		2021		2020		2019		Prior		Total
Gross Charge Offs:
Real Estate	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		—		—		—		—		—
Consumer		—		4		8		—		4		1		17
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	—	$	4	$	8	$	—	$	4	$	1	$	17

	Commercial and
(Dollars in thousands)	Industrial		Commercial Real Estate
	December 31,		December 31,
	2022		2022
Grade:
1-6 Pass	$	85,845	$	591,309
7    Special Mention		—		634
8    Substandard		725		18,781
9    Doubtful		—		—
Add (deduct):  Unearned discount		—		—
Net deferred loan fees and costs		429		825
Total loans	$	86,999	$	611,549

	Residential Real Estate
	Including Home Equity		Consumer
	December 31,		December 31,
	2022		2022
Grade:
1-6 Pass	$	153,902	$	5,349
7    Special Mention		—		—
8    Substandard		795		—
9    Doubtful		—		—
Add (deduct):  Unearned discount		—		—
Net deferred loan fees and costs		(191)		66
Total loans	$	154,506	$	5,415

	Total Loans
	December 31,
	2022
Grade:
1-6 Pass	$	836,405
7 Special Mention		634
8 Substandard		20,301
9 Doubtful		—
Add (deduct):  Unearned discount		—
Net deferred loan fees and costs		1,129
Total loans	$	858,469

Schedule of the allowance for credit losses, by loan class

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the three months ended March 31, 2023:
Allowance for Credit Losses:
Balance at December 31, 2022	$	7,483	$	6	$	504	$	84	$	197	$	8,274
CECL adoption adjustment		(717)		(4)		(261)		11		(148)		(1,119)
Beginning balance January 1, 2023		6,766		2		243		95		49		7,155
Charge-offs		—		—		—		(17)		—		(17)
Recoveries		1		—		1		2		—		4
(Credit) Provision		(32)		(1)		21		13		(1)		—
Ending Balance	$	6,735	$	1	$	265	$	93	$	48	$	7,142
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	6,735	$	1	$	265	$	93	$	48	$	7,142
Reserve for Unfunded Lending Commitments	$	215	$	—	$	22	$	—	$	—	$	237
Loans Receivable:
Ending Balance	$	767,060	$	783	$	58,280	$	5,844	$	30,216	$	862,183
Ending balance: individually
evaluated for impairment	$	4,376	$	309	$	661	$	—	$	—	$	5,346
Ending balance: collectively
evaluated for impairment	$	762,684	$	474	$	57,619	$	5,844	$	30,216	$	856,837

(Dollars in thousands)
	2023
Balance at December 31, 2022	$	68
CECL adoption adjustment		147
Provision for credit losses		22
Balance at March 31, 2023	$	237

(Dollars in thousands)	March 31, 2023
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With no related allowance recorded:
Real Estate	$	4,376	$	6,398	$	—
Agricultural		309		309		—
Commercial and Industrial		661		661		—
With an allowance recorded:
Real Estate		—		—		—
Agricultural		—		—		—
Commercial and Industrial		—		—		—
Total	$	5,346	$	7,368	$	—
Total consists of:
Real Estate	$	4,376	$	6,398	$	—
Agricultural	$	309	$	309	$	—
Commercial and Industrial	$	661	$	661	$	—

(Dollars in thousands)	For the Three Months Ended
	March 31, 2023
	Average		Interest
	Recorded		Income
	Investment		Recognized
With no related allowance recorded:
Real Estate	$	4,381	$	—
Agricultural		309		6
Commercial and Industrial		664		—
With an allowance recorded:
Real Estate		—		—
Agricultural		—		—
Commercial and Industrial		—		—
Total	$	5,354	$	6
Total consists of:
Real Estate	$	4,381	$	—
Agricultural	$	309	$	6
Commercial and Industrial	$	664	$	—

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the three months ended March 31, 2022:
Allowance for Credit Losses:
Beginning balance	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Charge-offs		—		—		—		(2)		—		(2)
Recoveries		1		38		1		—		—		40
(Credit) provision		(17)		313		(2)		(4)		(71)		219
Ending Balance	$	665	$	5,759	$	1,538	$	78	$	897	$	8,937
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	665	$	5,759	$	1,538	$	78	$	897	$	8,937
Loans Receivable:
Ending Balance	$	81,831	$	549,921	$	141,990	$	5,286	$	—	$	779,028
Ending balance: individually
evaluated for impairment	$	1,005	$	11,519	$	849	$	—	$	—	$	13,373
Ending balance: collectively
evaluated for impairment	$	80,826	$	538,402	$	141,141	$	5,286	$	—	$	765,655

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the year ended December 31, 2022:
Allowance for Credit Losses:
Beginning balance	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Charge-offs		(158)		(3)		(12)		(33)		—		(206)
Recoveries		3		40		16		5		—		64
(Credit) provision		178		487		14		25		(968)		(264)
Ending Balance	$	704	$	5,932	$	1,557	$	81	$	—	$	8,274
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	704	$	5,932	$	1,557	$	81	$	—	$	8,274
Loans Receivable:
Ending Balance	$	86,999	$	611,549	$	154,506	$	5,415	$	—	$	858,469
Ending balance: individually
evaluated for impairment	$	973	$	9,495	$	739	$	—	$	—	$	11,207
Ending balance: collectively
evaluated for impairment	$	86,026	$	602,054	$	153,767	$	5,415	$	—	$	847,262

Schedule of financial receivables that are collateral-dependent loans

(Dollars in thousands)	March 31, 2023
	Real Estate		Other
Real Estate	$	4,376	$	—
Agricultural		—		309
Commercial and Industrial		—		661
Total	$	4,376	$	970

Schedule of total non-performing assets

(Dollars in thousands)	March 31,		December 31,
	2023		2022
Real Estate	$	4,376	$	4,387
Agricultural		—		—
Commercial and Industrial		661		664
Consumer		—		—
State and Political Subdivisions		—		—
Total non-accrual loans		5,037		5,051
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		132		308
Total non-performing assets	$	5,169	$	5,359

Schedule of the classes of the loan portfolio, including non-accrual loans and TDRs, summarized by past-due status

(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
March 31, 2023:
Real Estate	$	1,368	$	903	$	4,508	$	6,779	$	760,281	$	767,060	$	132
Agricultural		—		—		—		—		783		783		—
Commercial and Industrial		34		—		638		672		57,608		58,280		—
Consumer		5		11		—		16		5,828		5,844		—
State and Political Subdivisions		—		—		—		—		30,216		30,216		—
Total	$	1,407	$	914	$	5,146	$	7,467	$	854,716	$	862,183	$	132

(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
December 31, 2022:
Real Estate	$	2,682	$	59	$	4,694	$	7,435	$	757,445	$	764,880	$	308
Agricultural		—		—		—		—		860		860		—
Commercial and Industrial		62		63		639		764		55,313		56,077		—
Consumer		11		2		—		13		5,694		5,707		—
State and Political Subdivisions		—		—		—		—		30,945		30,945		—
Total	$	2,755	$	124	$	5,333	$	8,212	$	850,257	$	858,469	$	308

Schedule of the outstanding recorded investment of TDRs

(Dollars in thousands)	December 31,
	2022
Non-accrual TDRs	$	1,324
Accruing TDRs		6,156
Total	$	7,480

Schedule of recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized with respect to the Corporation's impaired loans, preadoption of ASU

(Dollars in thousands)		December 31, 2022
				Unpaid
		Recorded		Principal		Related
		Investment		Balance		Allowance
With no related allowance recorded:
Commercial and Industrial	$	973	$	973	$	—
Commercial Real Estate		9,495		12,430		—
Residential Real Estate		739		771		—
With an allowance recorded:
Commercial and Industrial		—		—		—
Commercial Real Estate		—		—		—
Residential Real Estate		—		—		—
Total	$	11,207	$	14,174	$	—
Total consists of:
Commercial and Industrial	$	973	$	973	$	—
Commercial Real Estate	$	9,495	$	12,430	$	—
Residential Real Estate	$	739	$	771	$	—

(Dollars in thousands)	For the Three Months Ended
	March 31, 2022
	Average		Interest
	Recorded		Income
	Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	1,010	$	2
Commercial Real Estate		11,699		72
Residential Real Estate		851		—
With an allowance recorded:
Commercial and Industrial		—		—
Commercial Real Estate		—		—
Residential Real Estate		—		—
Total	$	13,560	$	74
Total consists of:
Commercial and Industrial	$	1,010	$	2
Commercial Real Estate	$	11,699	$	72
Residential Real Estate	$	851	$	—