LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of classes of the loan portfolio summarized by risk rating

(Dollars in thousands)
As of September 30, 2024:
Real Estate:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	73,573	$	112,800	$	175,503	$	123,034	$	104,919	$	224,123	$	813,952
7    Special Mention		30		—		74		225		—		1,257		1,586
8    Substandard		—		—		—		—		3,553		16,651		20,204
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		54		37		139		133		100		8		471
Total Real Estate Loans	$	73,657	$	112,837	$	175,716	$	123,392	$	108,572	$	242,039	$	836,213
Agricultural:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	64	$	232	$	47	$	—	$	—	$	661	$	1,004
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		2		2		—		—		—		—		4
Total Agricultural Loans	$	66	$	234	$	47	$	—	$	—	$	661	$	1,008
Commercial and Industrial:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	5,688	$	15,571	$	9,148	$	4,885	$	3,223	$	27,735	$	66,250
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		16		131		147
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		75		55		64		7		10		196		407
Total Commercial and Industrial Loans	$	5,763	$	15,626	$	9,212	$	4,892	$	3,249	$	28,062	$	66,804
Consumer:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	2,169	$	1,559	$	848	$	632	$	96	$	782	$	6,086
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		10		10
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		32		22		11		4		1		—		70
Total Consumer Loans	$	2,201	$	1,581	$	859	$	636	$	97	$	792	$	6,166

State and Political Subdivisions:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	—	$	837	$	2,739	$	13,957	$	1,833	$	5,033	$	24,399
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	$	—	$	839	$	2,740	$	13,961	$	1,834	$	5,034	$	24,408
Total Loans:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	81,494	$	130,999	$	188,285	$	142,508	$	110,071	$	258,334	$	911,691
7    Special Mention		30		—		74		225		—		1,257		1,586
8    Substandard		—		—		—		—		3,569		16,792		20,361
9    Doubtful		—		—		—		—		—		—		—
Unearned discount		—		—		—		—		—		—		—
Net deferred loan fees and costs		163		118		215		148		112		205		961
Total Loans	$	81,687	$	131,117	$	188,574	$	142,881	$	113,752	$	276,588	$	934,599
		2024		2023		2022		2021		2020		Prior		Total
Gross Charge Offs:
Real Estate	$	—	$	—	$	—	$	—	$	—	$	237	$	237
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		—		—		—		504		504
Consumer		—		5		15		9		7		6		42
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	—	$	5	$	15	$	9	$	7	$	747	$	783

(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 September 30, 2024:
Allowance for Credit Losses:
Beginning balance	$	7,206	$	2	$	325	$	91	$	63	$	7,687
Charge-offs		(237)		—		(504)		(9)		—		(750)
Recoveries		—		—		—		2		—		2
Provision		194		—		518		10		(4)		718
Ending Balance	$	7,163	$	2	$	339	$	94	$	59	$	7,657

(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, 2024:
Beginning balance January 1, 2024	$	6,539	$	1	$	265	$	78	$	42	$	6,925
Charge-offs		(237)		—		(504)		(42)		—		(783)
Recoveries		19		—		1		3		—		23
Provision		842		1		577		55		17		1,492
Ending Balance	$	7,163	$	2	$	339	$	94	$	59	$	7,657
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	7,163	$	2	$	339	$	94	$	59	$	7,657
Reserve for Unfunded Lending Commitments	$	149	$	—	$	23	$	—	$	1	$	173
Loans Receivable:
Ending Balance	$	836,213	$	1,008	$	66,804	$	6,166	$	24,408	$	934,599
Ending balance: individually
evaluated for impairment	$	3,452	$	309	$	107	$	—	$	—	$	3,868
Ending balance: collectively
evaluated for impairment	$	832,761	$	699	$	66,697	$	6,166	$	24,408	$	930,731

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

(Dollars in thousands)	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:
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		—		—		—		(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)									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 nine months ended September 30, 2024 and 2023 was as follows:

(Dollars in thousands)
	2024		2023
Balance at December 31	$	166	$	68
CECL adoption adjustment		—		147
Reserve for credit losses on unfunded commitments		7		18
Balance at September 30	$	173	$	233

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

(Dollars in thousands)	September 30,		December 31,
	2024		2023
Real Estate	$	835,742	$	810,923
Agricultural		1,004		670
Commercial and Industrial		66,397		66,483
Consumer		6,096		5,755
State and Political Subdivisions		24,399		26,173
Subtotal		933,638		910,004
Net Deferred Fees and Costs		961		1,074
Allowance for Credit Losses		(7,657)		(6,925)

Loans, Net $ 926,942 $ 904,153

Schedule of the outstanding recorded investment of TDRs

(Dollars in thousands)	September 30,
	2024
Modifications of Loans to Borrowers Experiencing Financial Difficulty:
Non-Accrual	$	—
Accruing		9,547
Total	$	9,547

Schedule of the loan modifications categorized as TDRs

(Dollars in thousands)	For the Three Months Ended September 30, 2024
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	1	$	120	$	120	$	120
Total	1	$	120	$	120	$	120

(Dollars in thousands)	For the Nine Months Ended September 30, 2024
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	2	$	9,575	$	9,575	$	9,547

Total 2 $ 9,575 $ 9,575 $ 9,547

Schedule of loan modifications made for loans categorized as TDRs

	For the Three Months Ended September 30, 2024
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Real Estate	—	1	—	1
Total	—	1	—	1

	For the Nine Months Ended September 30, 2024
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Real Estate	—	1	1	2
Total	—	1	1	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

(Dollars in thousands)	September 30, 2024
	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	$	—	$	3,452	$	3,452	$	—	$	5,441	$	5,441	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		107		107		—		509		509		—
Total	$	—	$	3,559	$	3,559	$	—	$	5,950	$	5,950	$	—

(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 nine months ended September 30, 2024 and 2023:

(Dollars in thousands)	For the Three Months Ended September 30, 2024
	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	$	—	$	3,866	$	3,866	$	—	$	2	$	2
Commercial and Industrial		—		573		573		—		—		—
Total	$	—	$	4,439	$	4,439	$	—	$	2	$	2

(Dollars in thousands)	For the Nine Months Ended September 30, 2024
	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	$	—	$	3,937	$	3,937	$	—	$	2	$	2
Commercial and Industrial		—		599		599		—		—		—
Total	$	—	$	4,536	$	4,536	$	—	$	2	$	2

(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	$	—	$	—	$	—
Commercial and Industrial		—		635		635		—		—		—
Total	$	—	$	5,058	$	5,058	$	—	$	—	$	—

(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	$	—	$	—	$	—
Commercial and Industrial		—		651		651		—		—		—
Total	$	—	$	5,053	$	5,053	$	—	$	—	$	—

Schedule of financial receivables that are collateral-dependent loans

(Dollars in thousands)	September 30, 2024
	Real Estate		Other
Real Estate	$	3,452	$	—
Agricultural		—		309
Commercial and Industrial		107		—
Total	$	3,559	$	309
(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)	September 30,		December 31,
	2024		2023
Real Estate	$	3,452	$	4,005
Agricultural		—		—
Commercial and Industrial		107		611
Consumer		—		—
State and Political Subdivisions		—		—
Total non-accrual loans		3,559		4,616
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		1,831		1,065
Total non-performing assets	$	5,390	$	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		Past Due		Past Due		Past Due		Past Due		Loans		Interest
September 30, 2024:
Real Estate	$	3,043	$	5,625	$	5,260	$	13,928	$	822,285	$	836,213	$	1,831
Agricultural		—		—		—		—		1,008		1,008		—
Commercial and Industrial		149		272		107		528		66,276		66,804		—
Consumer		34		—		—		34		6,132		6,166		—
State and Political Subdivisions		—		—		—		—		24,408		24,408		—
Total	$	3,226	$	5,897	$	5,367	$	14,490	$	920,109	$	934,599	$	1,831

(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