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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of classes of the loan portfolio summarized by risk rating



(Dollars in thousands)

As of June 30, 2024:

Real Estate:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	43,114	$	112,968	$	179,049	$	126,902	$	106,892	$	232,070	$	800,995
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		81		225		3,589		18,759		22,654
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		84		74		150		143		107		10		568
Total Real Estate Loans	$	43,198	$	113,042	$	179,280	$	127,270	$	110,588	$	250,839	$	824,217

Agricultural:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	35	$	243	$	51	$	—	$	—	$	658	$	987
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		—		—		—		—		—
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		1		2		—		—		—		—		3
Total Agricultural Loans	$	36	$	245	$	51	$	—	$	—	$	658	$	990

Commercial and Industrial:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	5,010	$	13,015	$	9,565	$	5,202	$	3,879	$	27,216	$	63,887
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		—		—		20		636		656
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		43		82		70		9		12		200		416
Total Commercial and Industrial Loans	$	5,053	$	13,097	$	9,635	$	5,211	$	3,911	$	28,052	$	64,959

Consumer:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	1,682	$	1,877	$	966	$	727	$	125	$	794	$	6,171
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		—		—		—		10		10
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		22		27		14		5		1		—		69
Total Consumer Loans	$	1,704	$	1,904	$	980	$	732	$	126	$	804	$	6,250






State and Political Subdivisions:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	—	$	843	$	4,095	$	14,139	$	1,857	$	5,135	$	26,069
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		—		—		—		—		—

9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		—		2		1		4		1		1		9
Total State and Political Subdivision Loans	$	—	$	845	$	4,096	$	14,143	$	1,858	$	5,136	$	26,078

Total Loans:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	49,841	$	128,946	$	193,726	$	146,970	$	112,753	$	265,873	$	898,109
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		81		225		3,609		19,405		23,320
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		150		187		235		161		121		211		1,065
Total Loans	$	49,991	$	129,133	$	194,042	$	147,356	$	116,483	$	285,489	$	922,494

		2024		2023		2022		2021		2020		Prior		Total
Gross Charge Offs:
Real Estate	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		—		—		—		—		—
Consumer		—		5		12		5		6		5		33
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	—	$	5	$	12	$	5	$	6	$	5	$	33


(Dollars in thousands)

As of December 31, 2023:

Real Estate:		2023		2022		2021		2020		2019		Prior		Total
1-6 Pass	$	110,819	$	186,729	$	132,724	$	110,038	$	54,543	$	192,686	$	787,539
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		86		587		3,661		9,452		9,598		23,384
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		130		176		153		116		(13)		8		570
Total Real Estate Loans	$	110,949	$	186,991	$	133,464	$	113,815	$	63,982	$	202,292	$	811,493

Agricultural:		2023		2022		2021		2020		2019		Prior		Total
1-6 Pass	$	—	$	59	$	—	$	—	$	—	$	611	$	670
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		—		—		—		—		—
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		—		1		—		—		—		—		1
Total Agricultural Loans	$	—	$	60	$	—	$	—	$	—	$	611	$	671

Commercial and Industrial:		2023		2022		2021		2020		2019		Prior		Total
1-6 Pass	$	12,672	$	10,186	$	5,776	$	7,439	$	6,833	$	22,927	$	65,833
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		—		—		—		650		650
9 Doubtful		—		—		—		—		—		—		—

Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		95		83		24		17		208		(1)		426
Total Commercial and Industrial Loans	$	12,767	$	10,269	$	5,800	$	7,456	$	7,041	$	23,576	$	66,909

Consumer:		2023		2022		2021		2020		2019		Prior		Total
1-6 Pass	$	2,415	$	1,238	$	926	$	206	$	110	$	802	$	5,697
7 Special Mention		58		—		—		—		—		—		58
8 Substandard		—		—		—		—		—		—		—
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		38		20		8		2		1		—		69
Total Consumer Loans	$	2,511	$	1,258	$	934	$	208	$	111	$	802	$	5,824

State and Political Subdivisions:		2023		2022		2021		2020		2019		Prior		Total
1-6 Pass	$	731	$	4,095	$	14,139	$	1,905	$	—	$	5,303	$	26,173
7 Special Mention		—		—		—		—		—		—		—
8 Substandard		—		—		—		—		—		—		—
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		2		1		4		1		—		—		8
Total State and Political Subdivision Loans	$	733	$	4,096	$	14,143	$	1,906	$	—	$	5,303	$	26,181

Total Loans:		2023		2022		2021		2020		2019		Prior		Total
1-6 Pass	$	126,637	$	202,307	$	153,565	$	119,588	$	61,486	$	222,329	$	885,912
7 Special Mention		58		—		—		—		—		—		58
8 Substandard		—		86		587		3,661		9,452		10,248		24,034
9 Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		265		281		189		136		196		7		1,074
Total Loans	$	126,960	$	202,674	$	154,341	$	123,385	$	71,134	$	232,584	$	911,078

		2023		2022		2021		2020		2019		Prior		Total
Gross Charge Offs:
Real Estate	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		—		—		—		—		—
Consumer		2		23		13		2		4		13		57
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	2	$	23	$	13	$	2	$	4	$	13	$	57

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, 2024:
Allowance for Credit Losses:
Beginning balance	$	6,725	$	1	$	322	$	85	$	63	$	7,196
Charge-offs		—		—		—		(21)		—		(21)
Recoveries		1		—		1		—		—		2
Provision		480		1		2		27		—		510
Ending Balance	$	7,206	$	2	$	325	$	91	$	63	$	7,687


(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, 2024:
Beginning balance January 1, 2024	$	6,539	$	1	$	265	$	78	$	42	$	6,925
Charge-offs		—		—		—		(33)		—		(33)
Recoveries		19		—		1		1		—		21
Provision		648		1		59		45		21		774
Ending Balance	$	7,206	$	2	$	325	$	91	$	63	$	7,687
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	7,206	$	2	$	325	$	91	$	63	$	7,687

Reserve for Unfunded Lending Commitments	$	159	$	—	$	36	$	—	$	1	$	196

Loans Receivable:
Ending Balance	$	824,217	$	990	$	64,959	$	6,250	$	26,078	$	922,494
Ending balance: individually
evaluated for impairment	$	3,929	$	309	$	611	$	—	$	—	$	4,849
Ending balance: collectively
evaluated for impairment	$	820,288	$	681	$	64,348	$	6,250	$	26,078	$	917,645


(Dollars in thousands)	Real				Commercial					Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the three months ended June 30, 2023:
Allowance for Loan 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)	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:
Beginning balance 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)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the year ended December 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		—		—		—		(57)		—		(57)
Recoveries		37		—		2		5		—		44
(Credit) Provision		(264)		(1)		20		35		(7)		(217)
Ending Balance	$	6,539	$	1	$	265	$	78	$	42	$	6,925
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	6,539	$	1	$	265	$	78	$	42	$	6,925

Reserve for Unfunded Lending Commitments	$	140	$	—	$	25	$	—	$	1	$	166

Loans Receivable:
Ending Balance	$	811,493	$	671	$	66,909	$	5,824	$	26,181	$	911,078
Ending balance: individually
evaluated for impairment	$	4,005	$	309	$	611	$	—	$	—	$	4,925
Ending balance: collectively
evaluated for impairment	$	807,488	$	362	$	66,298	$	5,824	$	26,181	$	906,153

The Company's activity in the allowance for credit losses on unfunded commitments for the six months ended June 30, 2024 and 2023 was as follows:


(Dollars in thousands)
	2024		2023
Balance at December 31	$	166	$	68
CECL adoption adjustment		—		147
Credit for credit losses on unfunded commitments		30		45
Balance at June 30	$	196	$	260

Summary of outstanding loan balances by loan class prior to allocation of net deferred fees and costs


(Dollars in thousands)	June 30,		December 31,
	2024		2023
Real Estate	$	823,649	$	810,923
Agricultural		987		670
Commercial and Industrial		64,543		66,483
Consumer		6,181		5,755
State and Political Subdivisions		26,069		26,173
Subtotal		921,429		910,004
Net Deferred Fees and Costs		1,065		1,074
Allowance for Credit Losses		(7,687)		(6,925)

Loans, Net

914,807

904,153

Schedule of the outstanding recorded investment of TDRs


(Dollars in thousands)	June 30,
	2024
Modifications of Loans to Borrowers Experiencing Financial Difficulty:
Non-Accrual	$	—
Accruing		9,455
Total	$	9,455

Schedule of the loan modifications categorized as TDRs


(Dollars in thousands)	For the Six Months Ended June 30, 2024
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	1	$	9,455	$	9,455	$	9,455
Total	1	$	9,455	$	9,455	$	9,455

Schedule of loan modifications made for loans categorized as TDRs



For the Six Months Ended June 30, 2024
Rate	Term	Payment	Number
Modification	Modification	Modification	Modified

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

(Dollars in thousands)

June 30, 2024

Recorded

Unpaid

Investment

Principal

Total

With

With No

Total

Balance With

Unpaid

Related

Recorded

Related

No Related

Principal

Related

Allowance

Investment

Allowance

Balance

Allowance

Real Estate

—

3,929

—

5,918

—

Agricultural

—

Commercial and Industrial

—

611

—

611

—

Total

—

4,540

—

6,529

—


(Dollars in thousands)		December 31, 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	$	—	$	4,005	$	4,005	$	—	$	5,994	$	5,994	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		611		611		—		611		611		—
Total	$	—	$	4,616	$	4,616	$	—	$	6,605	$	6,605	$	—

The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan.

The average recorded investment and interest income recognized for the Company’s non-accrual loans are summarized below for the three and six months ended June 30, 2024 and 2023:

(Dollars in thousands)

For the Three Months Ended June 30, 2024

Average

Interest

Recorded

Income

Investment

Total

Recognized

Total

With

With No

Average

With

With No

Interest

Related

Recorded

Related

Income

Allowance

Investment

Allowance

Recognized

Real Estate

—

3,957

—

Commercial and Industrial

—

611

—

Total

—

4,568

—

(Dollars in thousands)

For the Six Months Ended June 30, 2024

Average

Interest

Recorded

Income

Investment

Total

Recognized

Total

With

With No

Average

With

With No

Interest

Related

Recorded

Related

Income

Allowance

Investment

Allowance

Recognized

Real Estate

—

3,973

—

Commercial and Industrial

—

611

—

Total

—

4,584

—


(Dollars in thousands)	For the Three Months Ended June 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	$	—	$	4,367	$	4,367	$	—	$	4	$	4
Commercial and Industrial		—		653		653		—		—		—
Total	$	—	$	5,020	$	5,020	$	—	$	4	$	4


(Dollars in thousands)	For the Six Months Ended June 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	$	—	$	4,390	$	4,390	$	—	$	—	$	—
Commercial and Industrial		—		659		659		—		—		—
Total	$	—	$	5,049	$	5,049	$	—	$	—	$	—

Schedule of financial receivables that are collateral-dependent loans


(Dollars in thousands)	June 30, 2024
	Real Estate		Other
Real Estate	$	3,929	$	—
Agricultural		—		309
Commercial and Industrial		—		611
Total	$	3,929	$	920





(Dollars in thousands)	December 31, 2023
	Real Estate		Other
Real Estate	$	4,005	$	—
Agricultural		—		309
Commercial and Industrial		—		611
Total	$	4,005	$	920

Schedule of total non-performing assets


(Dollars in thousands)	June 30,		December 31,
	2024		2023
Real Estate	$	3,929	$	4,005
Agricultural		—		—
Commercial and Industrial		611		611
Consumer		—		—
State and Political Subdivisions		—		—
Total non-accrual loans		4,540		4,616
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		495		1,065
Total non-performing assets	$	5,035	$	5,681

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

Loans

Interest

June 30, 2024:

Real Estate

3,723

4,957

4,423

13,103

811,114

824,217

495

Agricultural

—

990

—

Commercial and Industrial

144

—

611

755

64,204

64,959

—

Consumer

—

6,229

6,250

—

State and Political Subdivisions

—

26,078

—

Total

3,888

4,957

5,034

13,879

908,615

922,494

495


(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, 2023:
Real Estate	$	2,155	$	379	$	5,069	$	7,603	$	803,890	$	811,493	$	1,065
Agricultural		—		—		—		—		671		671		—
Commercial and Industrial		6		—		591		597		66,312		66,909		—
Consumer		21		4		—		25		5,799		5,824		—
State and Political Subdivisions		—		—		—		—		26,181		26,181		—
Total	$	2,182	$	383	$	5,660	$	8,225	$	902,853	$	911,078	$	1,065