LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 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	$	66,345	$	192,001	$	136,245	$	115,622	$	55,438	$	197,923	$	763,574
7    Special Mention		—		—		—		—		—		630		630
8    Substandard		—		86		649		—		9,265		9,270		19,270
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		186		197		160		120		(14)		3		652
Total Real Estate Loans	$	66,531	$	192,284	$	137,054	$	115,742	$	64,689	$	207,826	$	784,126
Agricultural:
1-6 Pass	$	—	$	64	$	—	$	—	$	—	$	643	$	707
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		—		1		—		—		—		—		1
Total Agricultural Loans	$	—	$	65	$	—	$	—	$	—	$	643	$	708
Commercial and Industrial:
1-6 Pass	$	9,155	$	10,483	$	6,008	$	7,923	$	6,720	$	21,479	$	61,768
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		668		668
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		83		91		27		17		212		—		430
Total Commercial and Industrial Loans	$	9,238	$	10,574	$	6,035	$	7,940	$	6,932	$	22,147	$	62,866

Consumer:
1-6 Pass	$	2,051	$	1,431	$	1,178	$	260	$	193	$	987	$	6,100
7    Special Mention		49		—		—		—		—		—		49
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		31		23		10		3		2		—		69
Total Consumer Loans	$	2,131	$	1,454	$	1,188	$	263	$	195	$	987	$	6,218
State and Political Subdivisions:
1-6 Pass	$	734	$	4,095	$	14,750	$	1,930	$	—	$	5,603	$	27,112
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		2		2		4		1		—		(1)		8
Total State and Political Subdivision Loans	$	736	$	4,097	$	14,754	$	1,931	$	—	$	5,602	$	27,120
Total Loans:
1-6 Pass	$	78,285	$	208,074	$	158,181	$	125,735	$	62,351	$	226,635	$	859,261
7    Special Mention		49		—		—		—		—		630		679
8    Substandard		—		86		649		—		9,265		9,938		19,938
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		302		314		201		141		200		2		1,160
Total Loans	$	78,636	$	208,474	$	159,031	$	125,876	$	71,816	$	237,205	$	881,038
		2023		2022		2021		2020		2019		Prior		Total
Gross Charge Offs:
Real Estate	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		—		—		—		—		—
Consumer		—		23		8		—		4		8		43
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	—	$	23	$	8	$	—	$	4	$	8	$	43

	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

The activity in the allowance for credit losses by loan class (post adoption of ASU No. 2016-13), is summarized below for the three and nine months ended September 30, 2023.

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the three months ended September 30, 2023:
Allowance for Credit Losses:
Beginning balance	$	6,754	$	1	$	268	$	89	$	45	$	7,157
Charge-offs		—		—		—		(5)		—		(5)
Recoveries		34		—		—		1		—		35
(Credit)		(315)		—		(42)		(12)		(1)		(370)
Ending Balance	$	6,473	$	1	$	226	$	73	$	44	$	6,817

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the nine months ended September 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		—		—		—		(43)		—		(43)
Recoveries		36		—		2		3		—		41
(Credit) Provision		(329)		(1)		(19)		18		(5)		(336)
Ending Balance	$	6,473	$	1	$	226	$	73	$	44	$	6,817
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	6,473	$	1	$	226	$	73	$	44	$	6,817
Reserve for Unfunded Lending Commitments	$	207	$	—	$	25	$	—	$	1	$	233
Loans Receivable:
Ending Balance	$	784,126	$	708	$	62,866	$	6,218	$	27,120	$	881,038
Ending balance: individually
evaluated for impairment	$	4,385	$	309	$	624	$	—	$	—	$	5,318
Ending balance: collectively
evaluated for impairment	$	779,741	$	399	$	62,242	$	6,218	$	27,120	$	875,720

(Dollars in thousands)
	2023
Balance at December 31, 2022	$	68
CECL adoption adjustment		147
Provision for credit losses on unfunded commitments		18
Balance at September 30, 2023	$	233

(Dollars in thousands)	September 30, 2023
	Recorded		Recorded				Unpaid		Unpaid
	Investment		Investment				Principal		Principal		Total
	With		With No		Total		Balance With		Balance With		Unpaid
	Related		Related		Recorded		Related		No Related		Principal		Related
	Allowance		Allowance		Investment		Allowance		Allowance		Balance		Allowance
Real Estate	$	—	$	4,385	$	4,385	$	—	$	6,374	$	6,374	$	—
Agricultural		—		309		309		—		309		309		—
Commercial and Industrial		—		624		624		—		624		624		—
Total	$	—	$	5,318	$	5,318	$	—	$	7,307	$	7,307	$	—

(Dollars in thousands)	For the Three Months Ended September 30, 2023
	Average		Average				Interest		Interest
	Recorded		Recorded				Income		Income
	Investment		Investment		Total		Recognized		Recognized		Total
	With		With No		Average		With		With No		Interest
	Related		Related		Recorded		Related		Related		Income
	Allowance		Allowance		Investment		Allowance		Allowance		Recognized
Real Estate	$	—	$	4,423	$	4,423	$	—	$	—	$	—
Agricultural		—		309		309		—		6		6
Commercial and Industrial		—		635		635		—		—		—
Total	$	—	$	5,367	$	5,367	$	—	$	6	$	6

(Dollars in thousands)	For the Nine Months Ended September 30, 2023
	Average		Average				Interest		Interest
	Recorded		Recorded				Income		Income
	Investment		Investment		Total		Recognized		Recognized		Total
	With		With No		Average		With		With No		Interest
	Related		Related		Recorded		Related		Related		Income
	Allowance		Allowance		Investment		Allowance		Allowance		Recognized
Real Estate	$	—	$	4,402	$	4,402	$	—	$	—	$	—
Agricultural		—		309		309		—		18		18
Commercial and Industrial		—		651		651		—		—		—
Total	$	—	$	5,362	$	5,362	$	—	$	18	$	18

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the three months ended September 30, 2022:
Allowance for Loan Losses:
Beginning balance	$	675	$	5,954	$	1,609	$	79	$	843	$	9,160
Charge-offs		(149)		—		(12)		(10)		—		(171)
Recoveries		—		—		2		1	$	—		3
Provision (credit)		192		93		11		5		(82)		219
Ending Balance	$	718	$	6,047	$	1,610	$	75	$	761	$	9,211

(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the nine months ended September 30, 2022:
Allowance for Credit Losses:
Beginning balance	$	681	$	5,408	$	1,539	$	84	$	968	$	8,680
Charge-offs		(158)		—		(12)		(16)		—		(186)
Recoveries		2		38		16		5		—		61
Provision (credit)		193		601		67		2		(207)		656
Ending Balance	$	718	$	6,047	$	1,610	$	75	$	761	$	9,211
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	718	$	6,047	$	1,610	$	75	$	761	$	9,211
Loans Receivable:
Ending Balance	$	85,855	$	600,068	$	154,324	$	5,428	$	—	$	845,675
Ending balance: individually
evaluated for impairment	$	979	$	10,357	$	841	$	—	$	—	$	12,177
Ending balance: collectively
evaluated for impairment	$	84,876	$	589,711	$	153,483	$	5,428	$	—	$	833,498

(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
Provision (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)	September 30, 2023
	Real Estate		Other
Real Estate	$	4,385	$	—
Agricultural		—		309
Commercial and Industrial		—		624
Total	$	4,385	$	933

Schedule of total non-performing assets

(Dollars in thousands)	September 30,		December 31,
	2023		2022
Real Estate	$	4,385	$	4,387
Agricultural		—		—
Commercial and Industrial		624		664
Consumer		—		—
State and Political Subdivisions		—		—
Total non-accrual loans		5,009		5,051
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		1,284		308
Total non-performing assets	$	6,293	$	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
September 30, 2023:
Real Estate	$	849	$	177	$	5,669	$	6,695	$	777,431	$	784,126	$	1,284
Agricultural		—		—		—		—		708		708		—
Commercial and Industrial		88		—		602		690		62,176		62,866		—
Consumer		8		—		—		8		6,210		6,218		—
State and Political Subdivisions		—		—		—		—		27,120		27,120		—
Total	$	945	$	177	$	6,271	$	7,393	$	873,645	$	881,038	$	1,284

(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 nine months ended September 30, 2022.

(Dollars in thousands)	For the Three Months Ended September 30, 2022
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	1	$	134	$	143	$	143
Total	1	$	134	$	143	$	143
(Dollars in thousands)	For the Nine Months Ended September 30, 2022
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial Real Estate	2	$	481	$	515	$	507
Total	2	$	481	$	515	$	507

Schedule of loan modifications made for loans categorized as TDRs

	For the Three Months Ended September 30, 2022
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	1	1
Total	—	—	1	1
	For the Nine Months Ended September 30, 2022
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial Real Estate	—	—	2	2
Total	—	—	2	2

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
	Recorded		Recorded				Unpaid		Unpaid
	Investment		Investment				Principal		Principal		Total
	With		With No		Total		Balance With		Balance With		Unpaid
	Related		Related		Recorded		Related		No Related		Principal		Related
	Allowance		Allowance		Investment		Allowance		Allowance		Balance		Allowance
Commercial and Industrial	$	—	$	973	$	973	$	—	$	973	$	973	$	—
Commercial Real Estate		—		9,495		9,495		—		12,430		12,430		—
Residential Real Estate		—		739		739		—		771		771		—
Total	$	—	$	11,207	$	11,207	$	—	$	14,174	$	14,174	$	—

(Dollars in thousands)	For the Three Months Ended September 30, 2022
	Average		Average				Interest		Interest
	Recorded		Recorded				Income		Income
	Investment		Investment		Total		Recognized		Recognized		Total
	With		With No		Average		With		With No		Interest
	Related		Related		Recorded		Related		Related		Income
	Allowance		Allowance		Investment		Allowance		Allowance		Recognized
Commercial and Industrial	$	—	$	987	$	987	$	—	$	4	$	4
Commercial Real Estate		—		10,400		10,400		—		71		71
Residential Real Estate		—		843		843		—		—		—
Total	$	—	$	12,230	$	12,230	$	—	$	75	$	75

(Dollars in thousands)	For the Nine Months Ended September 30, 2022
	Average		Average				Interest		Interest
	Recorded		Recorded				Income		Income
	Investment		Investment		Total		Recognized		Recognized		Total
	With		With No		Average		With		With No		Interest
	Related		Related		Recorded		Related		Related		Income
	Allowance		Allowance		Investment		Allowance		Allowance		Recognized
Commercial and Industrial	$	—	$	997	$	997	$	—	$	9	$	9
Commercial Real Estate		—		10,962		10,962		—		213		213
Residential Real Estate		—		847		847		—		—		—
Total	$	—	$	12,806	$	12,806	$	—	$	222	$	222