LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 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	$	41,847	$	192,228	$	142,849	$	117,438	$	56,819	$	202,536	$	753,717
7    Special Mention		—		—		—		—		—		631		631
8    Substandard		—		86		888		—		9,287		9,424		19,685
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		148		226		171		124		(14)		—		655
Total Real Estate Loans	$	41,995	$	192,540	$	143,908	$	117,562	$	66,092	$	212,591	$	774,688
Agricultural:
1-6 Pass	$	—	$	66	$	—	$	—	$	1	$	793	$	860
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		—		1		—		—		—		1		2
Total Agricultural Loans	$	—	$	67	$	—	$	—	$	1	$	794	$	862
Commercial and Industrial:
1-6 Pass	$	6,191	$	10,954	$	5,790	$	7,762	$	6,822	$	22,681	$	60,200
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		692		692
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		50		103		32		19		216		1		421
Total Commercial and Industrial Loans	$	6,241	$	11,057	$	5,822	$	7,781	$	7,038	$	23,374	$	61,313

Consumer:
1-6 Pass	$	1,626	$	1,590	$	1,296	$	308	$	248	$	982	$	6,050
7    Special Mention		10		—		—		—		—		—		10
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		24		27		11		4		3		—		69
Total Consumer Loans	$	1,660	$	1,617	$	1,307	$	312	$	251	$	982	$	6,129
State and Political Subdivisions:
1-6 Pass	$	50	$	5,442	$	15,098	$	1,953	$	—	$	5,697	$	28,240
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		1		2		4		1		—		(1)		7
Total State and Political Subdivision Loans	$	51	$	5,444	$	15,102	$	1,954	$	—	$	5,696	$	28,247
Total Loans:
1-6 Pass	$	49,714	$	210,280	$	165,033	$	127,461	$	63,890	$	232,689	$	849,067
7    Special Mention		10		—		—		—		—		631		641
8    Substandard		—		86		888		—		9,287		10,116		20,377
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		223		359		218		148		205		1		1,154
Total Loans	$	49,947	$	210,725	$	166,139	$	127,609	$	73,382	$	243,437	$	871,239
		2023		2022		2021		2020		2019		Prior		Total
Gross Charge Offs:
Real Estate	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		—		—		—		—		—
Consumer		—		23		8		—		4		3		38
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	—	$	23	$	8	$	—	$	4	$	3	$	38

	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

Loans individually or collectively evaluated for their impairment and related allowance, 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 June 30, 2023:
Allowance for Credit Losses:
Beginning balance		6,735		1		265		93		48		7,142
Charge-offs		—		—		—		(21)		—		(21)
Recoveries		1		—		1		—		—		2
Provision (credit)		18		—		2		17		(3)		34
Ending Balance	$	6,754	$	1	$	268	$	89	$	45	$	7,157

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the six months ended June 30, 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		—		—		—		(38)		—		(38)
Recoveries		2		—		2		2		—		6
(Credit) Provision		(14)		(1)		23		30		(4)		34
Ending Balance	$	6,754	$	1	$	268	$	89	$	45	$	7,157
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	6,754	$	1	$	268	$	89	$	45	$	7,157
Reserve for Unfunded Lending Commitments	$	225	$	—	$	35	$	—	$	—	$	260
Loans Receivable:
Ending Balance	$	774,688	$	862	$	61,313	$	6,129	$	28,247	$	871,239
Ending balance: individually
evaluated for impairment	$	4,445	$	309	$	644	$	—	$	—	$	5,398
Ending balance: collectively
evaluated for impairment	$	770,243	$	553	$	60,669	$	6,129	$	28,247	$	865,841

(Dollars in thousands)
	2023
Balance at December 31, 2022	$	68
CECL adoption adjustment		147
Provision for credit losses on unfunded commitments		45
Balance at June 30, 2023	$	260

(Dollars in thousands)	June 30, 2023
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With no related allowance recorded:
Real Estate	$	4,445	$	6,466	$	—
Agricultural		309		309		—
Commercial and Industrial		644		644		—
With an allowance recorded:
Real Estate		—		—		—
Agricultural		—		—		—
Commercial and Industrial		—		—		—
Total	$	5,398	$	7,419	$	—
Total consists of:
Real Estate	$	4,445	$	6,466	$	—
Agricultural	$	309	$	309	$	—
Commercial and Industrial	$	644	$	644	$	—

(Dollars in thousands)	For the Three Months Ended
	June 30, 2023
	Average		Interest
	Recorded		Income
	Investment		Recognized
With no related allowance recorded:
Real Estate	$	4,367	$	—
Agricultural		309		6
Commercial and Industrial		653		—
With an allowance recorded:
Real Estate		—		—
Agricultural		—		—
Commercial and Industrial		—		—
Total	$	5,329	$	6
Total consists of:
Real Estate	$	4,367	$	—
Agricultural	$	309	$	6
Commercial and Industrial	$	653	$	—

(Dollars in thousands)	For the Six Months Ended
	June 30, 2023
	Average		Interest
	Recorded		Income
	Investment		Recognized
With no related allowance recorded:
Real Estate	$	4,390	$	—
Agricultural		309		12
Commercial and Industrial		659		—
With an allowance recorded:
Real Estate		—		—
Agricultural		—		—
Commercial and Industrial		—		—
Total	$	5,358	$	12
Total consists of:
Real Estate	$	4,390	$	—
Agricultural	$	309	$	12
Commercial and Industrial	$	659	$	—

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the three months ended June 30, 2022:
Allowance for Loan Losses:
Beginning balance	$	665	$	5,759	$	1,538	$	78	$	897	$	8,937
Charge-offs		(9)		—		—		(4)		—		(13)
Recoveries		1		—		13		4	$	—		18
Provision (credit)		18		195		58		1		(54)		218
Ending Balance	$	675	$	5,954	$	1,609	$	79	$	843	$	9,160

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the six months ended June 30, 2022:
Allowance for Credit Losses:
Beginning balance	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Charge-offs		(9)		—		—		(6)		—		(15)
Recoveries		2		38		14		4		—		58
Provision (credit)		1		508		56		(3)		(125)		437
Ending Balance	$	675	$	5,954	$	1,609	$	79	$	843	$	9,160
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	675	$	5,954	$	1,609	$	79	$	843	$	9,160
Loans Receivable:
Ending Balance	$	82,539	$	568,258	$	148,621	$	5,402	$	—	$	804,820
Ending balance: individually
evaluated for impairment	$	991	$	10,448	$	845	$	—	$	—	$	12,284
Ending balance: collectively
evaluated for impairment	$	81,548	$	557,810	$	147,776	$	5,402	$	—	$	792,536

(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
Proviion (credit)		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)	June 30, 2023
	Real Estate		Other
Real Estate	$	4,445	$	—
Agricultural		—		309
Commercial and Industrial		—		644
Total	$	4,445	$	953

Schedule of total non-performing assets

(Dollars in thousands)	June 30,		December 31,
	2023		2022
Real Estate	$	4,445	$	4,387
Agricultural		—		—
Commercial and Industrial		644		664
Consumer		—		—
State and Political Subdivisions		—		—
Total non-accrual loans		5,089		5,051
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		584		308
Total non-performing assets	$	5,673	$	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
June 30, 2023:
Real Estate	$	1,433	$	631	$	5,029	$	7,093	$	767,595	$	774,688	$	584
Agricultural		—		—		—		—		862		862		—
Commercial and Industrial		—		—		621		621		60,692		61,313		—
Consumer		5		5		—		10		6,119		6,129		—
State and Political Subdivisions		—		—		—		—		28,247		28,247		—
Total	$	1,438	$	636	$	5,650	$	7,724	$	863,515	$	871,239	$	584

(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 the loan modifications categorized as TDRs

The following table presents information regarding the loan modifications categorized as TDRs during the three and six months ended June 30, 2022.

(Dollars in thousands)	For the Three Months Ended June 30, 2022
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	1	$	347	$	372	$	372
Total	1	$	347	$	372	$	372
(Dollars in thousands)	For the Six Months Ended June 30, 2022
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	1	$	347	$	372	$	372
Total	1	$	347	$	372	$	372

Schedule of loan modifications made for loans categorized as TDRs

The following table provides detail regarding they types of loan modifications made for loans categorized as TDRs during the three and six months ended June 30, 2022.

	For the Three Months Ended June 30, 2022
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	1	1
Total	—	—	1	1
	For the Six Months Ended June 30, 2022
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	1	1
Total	—	—	1	1

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
	June 30, 2022
	Average		Interest
	Recorded		Income
	Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	998	$	3
Commercial Real Estate		10,801		70
Residential Real Estate		847		—
With an allowance recorded:
Commercial and Industrial		—		—
Commercial Real Estate		—		—
Residential Real Estate		—		—
Total	$	12,646	$	73
Total consists of:
Commercial and Industrial	$	998	$	3
Commercial Real Estate	$	10,801	$	70
Residential Real Estate	$	847	$	—

(Dollars in thousands)	For the Six Months Ended
	June 30, 2022
	Average		Interest
	Recorded		Income
	Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	1,004	$	5
Commercial Real Estate		11,247		142
Residential Real Estate		849		—
With an allowance recorded:
Commercial and Industrial		—		—
Commercial Real Estate		—		—
Residential Real Estate		—		—
Total	$	13,100	$	147
Total consists of:
Commercial and Industrial	$	1,004	$	5
Commercial Real Estate	$	11,247	$	142
Residential Real Estate	$	849	$	—