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Loans (Tables)
 9 Months Ended
Sep. 30, 2022
Loans [Abstract]  
Loan Portfolio and Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for loan losses as of September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022
  
Total Loans
    
Individually evaluated
for impairment
    
Loans acquired with
deteriorated credit quality
    
Collectively evaluated
for impairment
  
Real estate loans:
                        
Residential
  
$
203,673
    
$
344
    
$
9
    
$
203,320
  
Commercial
    
857,314
      
5,736
      
1,902
      
849,676
  
Agricultural
    
317,761
      
5,174
      
1,523
      
311,064
  
Construction
    
79,154
      
-
      
-
      
79,154
  
Consumer
    
124,375
      
4
      
-
      
124,371
  
Other commercial loans
    
66,241
      
135
      
-
      
66,106
  
Other agricultural loans
    
29,509
      
801
      
-
      
28,708
  
State and political subdivision loans
    
59,926
      
-
      
-
      
59,926
  
Total
    
1,737,953
      
12,194
      
3,434
      
1,722,325
  
Allowance for loan losses
    
18,291
      
107
      
-
      
18,184
  
Net loans
  
$
1,719,662
    
$
12,087
    
$
3,434
    
$
1,704,141
  

December 31, 2021
  
Total Loans
   
Individually evaluated
for impairment
   
Loans acquired with
deteriorated credit quality
   
Collectively evaluated
for impairment
 
Real estate loans:
                        
Residential
  
$
201,097
    
$
620
    
$
14
    
$
200,463
  
Commercial
    
687,338
      
8,381
      
2,145
      
676,812
  
Agricultural
    
312,011
      
5,355
      
1,643
      
305,013
  
Construction
    
55,036
      
-
      
-
      
55,036
  
Consumer
    
25,858
      
-
      
-
      
25,858
  
Other commercial loans
    
74,585
      
186
      
-
      
74,399
  
Other agricultural loans
    
39,852
      
991
      
-
      
38,861
  
State and political subdivision loans
    
45,756
      
-
      
-
      
45,756
  
Total
    
1,441,533
      
15,533
      
3,802
      
1,422,198
  
Allowance for loan losses
    
17,304
      
121
      
-
      
17,183
  
Net loans
  
$
1,424,229
    
$
15,412
    
$
3,802
    
$
1,405,015
  
Accretable Yield for Purchased Credit Impaired Loans

Changes in the accretable yield for PCI loans were as follows for the three and nine months ended September 30, 2022 and 2021 (in thousands):

 
Three months ended
September 30,
    
Nine months ended
September 30,
  
   
2022
    
2021
    
2022
    
2021
  
Balance at beginning of period
  
$
278
    
$
584
    
$
370
    
$
788
  
Acquisition of Midcoast
     -       -       -       -  
Reclassification of non-accretable discount
     774       29       1,002       29  
Accretion
    
(105
)
    
(135
)
    
(425
)
    
(339
)
Balance at end of period
  
$
947
    
$
478
    
$
947
    
$
478
  
Loans Acquired with Specific Evidence of Deterioration in Credit Quality

The following table presents additional information regarding loans acquired with specific evidence of deterioration in credit quality under ASC 310-30 (in thousands):

 
September 30, 2022
    
December 31, 2021
  
Outstanding balance
  
$
6,207
    
$
6,159
  
Carrying amount
    
3,434
      
3,802
  
Impaired Loan Receivables with Associated Allowance Amount

The following table includes the recorded investment and unpaid principal balances for impaired loan receivables by class, excluding PCI loans, with the associated allowance amount, if applicable (in thousands):

September 30, 2022
  
Unpaid
Principal
Balance
    
Recorded
Investment
With No
Allowance
    
Recorded
Investment
With
Allowance
    
Total
Recorded
Investment
    
Related
Allowance
  
Real estate loans:
                              
Mortgages
  
$
430
    
$
248
    
$
41
    
$
289
    
$
5
  
Home Equity
    
73
      
40
      
15
      
55
      
1
  
Commercial
    
6,850
      
5,372
      
364
      
5,736
      
60
  
Agricultural
    
5,637
      
4,986
      
188
      
5,174
      
24
  
Consumer
     4       -       4       4       4  
Other commercial loans
    
798
      
62
      
73
      
135
      
13
  
Other agricultural loans
    
1,159
      
801
      
-
      
801
      
-
  
Total
  
$
14,951
    
$
11,509
    
$
685
    
$
12,194
    
$
107
  

December 31, 2021
  
   
   
   
   
 
Real estate loans:
                              
Mortgages
  
$
697
    
$
495
    
$
45
    
$
540
    
$
6
  
Home Equity
    
97
      
37
      
43
      
80
      
6
  
Commercial
    
9,330
      
8,096
      
285
      
8,381
      
61
  
Agricultural
    
5,694
      
5,167
      
188
      
5,355
      
14
  
Other commercial loans
    
813
      
92
      
94
      
186
      
34
  
Other agricultural loans
    
1,274
      
991
      
-
      
991
      
-
  
Total
  
$
17,905
    
$
14,878
    
$
655
    
$
15,533
    
$
121
  


The following tables includes the average balance of impaired loan receivables by class and the income recognized on these receivables for the three and nine month periods ended September 30, 2022 and 2021 (in thousands):

    For the Nine Months Ended  
   
September 30, 2022
    
September 30, 2021
  
   
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Interest
Income
Recognized
Cash Basis
    
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Interest
Income
Recognized
Cash Basis
  
Real estate loans:
                                    
Mortgages
  
$
466
    
$
9
    
$
-
    
$
727
    
$
12
    
$
-
  
Home Equity
    
68
      
2
      
-
      
106
      
4
      
-
  
Commercial
    
6,372
      
141
      
6
      
8,902
      
211
      
23
  
Agricultural
    
5,253
      
90
      
-
      
4,513
      
64
      
-
  
Consumer
     -       -       -       1       -       -  
Other commercial loans
    
313
      
2
      
-
      
876
      
2
      
-
  
Other agricultural loans
    
886
      
3
      
-
      
1,069
      
3
      
-
  
Total
  
$
13,358
    
$
247
    
$
6
    
$
16,194
    
$
296
    
$
23
  

 
For the Three Months Ended
  
   
September 30, 2022
    
September 30, 2021
  
   
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Interest
Income
Recognized
Cash Basis
    
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Interest
Income
Recognized
Cash Basis
  
Real estate loans:
                                    
Mortgages
  
$
321
    
$
4
    
$
-
    
$
613
    
$
4
    
$
-
  
Home Equity
    
50
      
1
      
-
      
84
      
1
      
-
  
Commercial
    
5,778
      
43
      
3
      
8,688
      
77
      
8
  
Agricultural
    
5,194
      
33
      
-
      
4,454
      
21
      
-
  
Consumer
     1       -       -       -       -       -  
Other commercial loans
    
157
      
1
      
-
      
486
      
-
      
-
  
Other agricultural loans
    
822
      
1
      
-
      
1,022
      
1
      
-
  
Total
  
$
12,323
    
$
83
    
$
3
    
$
15,347
    
$
104
    
$
8
  
Financing Receivable Credit Exposures by Internally Assigned Grades

The following tables represent credit exposures by internally assigned grades as of September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022
  
Pass
    
Special Mention
    
Substandard
    
Doubtful
    
Loss
    
Ending Balance
  
Real estate loans:
                                    
Commercial
  
$
816,081
    
$
34,150
    
$
7,083
    
$
-
    
$
-
    
$
857,314
  
Agricultural
    
302,861
      
10,342
      
4,558
      
-
      
-
      
317,761
  
Construction
    
73,330
      
5,824
      
-
      
-
      
-
      
79,154
  
Other commercial loans
    
62,915
      
3,015
      
279
      
32
      
-
      
66,241
  
Other agricultural loans
    
27,820
      
1,304
      
385
      
-
      
-
      
29,509
  
State and political subdivision loans
    
59,926
      
-
      
-
      
-
      
-
      
59,926
  
Total
  
$
1,342,933
    
$
54,635
    
$
12,305
    
$
32
    
$
-
    
$
1,409,905
  

December 31, 2021
  

   

   

   

   

   

 
Real estate loans:
                                    
Commercial
  
$
646,137
    
$
35,332
    
$
5,869
    
$
-
    
$
-
    
$
687,338
  
Agricultural
    
291,537
      
15,105
      
5,369
      
-
      
-
      
312,011
  
Construction
    
55,036
      
-
      
-
      
-
      
-
      
55,036
  
Other commercial loans
    
70,932
      
3,289
      
316
      
48
      
-
      
74,585
  
Other agricultural loans
    
37,800
      
1,351
      
701
      
-
      
-
      
39,852
  
State and political subdivision loans
    
45,588
      
168
      
-
      
-
      
-
      
45,756
  
Total
  
$
1,147,030
    
$
55,245
    
$
12,255
    
$
48
    
$
-
    
$
1,214,578
  
Aging Analysis of Past Due Loan Receivables

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table includes an aging analysis of the recorded investment of past due loan receivables as of September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 Days
Or Greater
    
Total Past
Due
    
Current
    
PCI
    
Total
Loans
Receivables
    
90 Days or
Greater and
Accruing
  
Real estate loans:
                                                
Mortgages
  
$
1,495
    
$
77
    
$
229
    
$
1,801
    
$
153,932
    
$
9
    
$
155,742
    
$
21
  
Home Equity
    
71
      
-
      
29
      
100
      
47,831
      
-
      
47,931
      
-
  
Commercial
    
548
      
185
      
2,181
      
2,914
      
852,498
      
1,902
      
857,314
      
72
  
Agricultural
    
-
      
-
      
1,367
      
1,367
      
314,871
      
1,523
      
317,761
      
-
  
Construction
    
-
      
-
      
-
      
-
      
79,154
      
-
      
79,154
      
-
  
Consumer
    
98
      
10
      
-
      
108
      
124,267
      
-
      
124,375
      
-
  
Other commercial loans
    
107
      
-
      
62
      
169
      
66,072
      
-
      
66,241
      
-
  
Other agricultural loans
    
-
      
199
      
-
      
199
      
29,310
      
-
      
29,509
      
-
  
State and political subdivision loans
    
-
      
-
      
-
      
-
      
59,926
      
-
      
59,926
      
-
  
Total
  
$
2,319
    
$
471
    
$
3,868
    
$
6,658
    
$
1,727,861
    
$
3,434
    
$
1,737,953
    
$
93
  
                                                                 
Loans considered non-accrual
  
$
41
    
$
133
    
$
3,775
    
$
3,949
    
$
3,169
    
$
-
    
$
7,118
          
Loans still accruing
    
2,278
      
338
      
93
      
2,709
      
1,724,692
      
3,434
      
1,730,835
          
Total
  
$
2,319
    
$
471
    
$
3,868
    
$
6,658
    
$
1,727,861
    
$
3,434
    
$
1,737,953
          

December 31, 2021
  
30-59
Days
Past Due
    
 60-89
Days
Past Due
    
90 Days
Or Greater
    
Total Past
Due
     Current     PCI    
Total
Loans
Receivables
    
90 Days or
Greater and
Accruing
  
Real estate loans:
                                                
Mortgages
  
$
220
    
$
170
    
$
209
    
$
599
    
$
150,329
    
$
14
    
$
150,942
    
$
13
  
Home Equity
    
103
      
-
      
33
      
136
      
50,019
      
-
      
50,155
      
33
  
Commercial
    
127
      
115
      
1,969
      
2,211
      
682,982
      
2,145
      
687,338
      
-
  
Agricultural
    
31
      
-
      
1,367
      
1,398
      
308,970
      
1,643
      
312,011
      
-
  
Construction
    
-
      
-
      
-
      
-
      
55,036
      
-
      
55,036
      
-
  
Consumer
    
163
      
1
      
-
      
164
      
25,694
      
-
      
25,858
      
-
  
Other commercial loans
    
17
      
10
      
92
      
119
      
74,466
      
-
      
74,585
      
-
  
Other agricultural loans
    
10
      
-
      
-
      
10
      
39,842
      
-
      
39,852
      
-
  
State and political subdivision loans
    
-
      
-
      
-
      
-
      
45,756
      
-
      
45,756
      
-
  
Total
  
$
671
    
$
296
    
$
3,670
    
$
4,637
    
$
1,433,094
    
$
3,802
    
$
1,441,533
    
$
46
  
                                                                 
Loans considered non-accrual
  
$
-
    
$
-
    
$
3,624
    
$
3,624
    
$
3,992
    
$
-
    
$
7,616
          
Loans still accruing
    
671
      
296
      
46
      
1,013
      
1,429,102
      
3,802
      
1,433,917
          
Total
  
$
671
    
$
296
    
$
3,670
    
$
4,637
    
$
1,433,094
    
$
3,802
    
$
1,441,533
          
Loan Receivables on Nonaccrual Status

The following table reflects the loan receivables, excluding PCI loans, on non-accrual status as of September 30, 2022 and December 31, 2021, respectively. The balances are presented by class of loan receivable (in thousands):

 
September 30, 2022
    
December 31, 2021
  
Real estate loans:
            
Mortgages
  
$
549
    
$
595
  
Home Equity
     29       -  
Commercial
    
2,833
      
2,945
  
Agricultural
    
3,295
      
3,133
  
Other commercial loans
    
94
      
140
  
Other agricultural loans
    
318
      
803
  
 
  
$
7,118
    
$
7,616
  
Troubled Debt Restructurings on Financing Receivables

Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2022 and the nine months ended September 30, 2021 were as follows (dollars in thousands). There were no loan modifications that were considered TDRs during the three months ended September 30, 2021.

For the Three Months Ended September 30, 2022
  
 
Number of contracts
  
Pre-modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
  
 
Interest Modification
  
Term Modification
  
Interest Modification
  
Term Modification
  
Interest Modification
  
Term Modification
  
Real estate loans:
                        
Home Equity
     -       1     $
 -     $
8     $
-     $
8  
Agricultural
    
-
      
2
    

-
    

1,137
    

-
    

1,137
  
Total
    
-
      
3
    
$
-
    
$
1,145
    
$
-
    
$
1,145
  

For the Nine Months Ended September 30, 2022
  
 
Number of contracts
  
Pre-modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
  
 
Interest Modification
  
Term Modification
  
Interest Modification
  
Term Modification
  
Interest Modification
  
Term Modification
  
Real estate loans:
                        
Home Equity
     -       1     $
 -     $
 8     $
 -     $
 8  
Commercial
    
-
      
3
    

-
    

1,430
    

-
    

1,430
  
Agricultural
     -       2       -       1,137       -       1,137  
Total
    
-
      
6
    
$
-
    
$
2,575
    
$
-
    
$
2,575
  

 
For the Nine Months Ended September 30, 2021
  
   
Number of contracts
    
Pre-modification Outstanding Recorded Investment
    
Post-Modification Outstanding Recorded Investment
  
   
Interest Modification
    
Term Modification
    
Interest Modification
    
Term Modification
    
Interest Modification
    
Term Modification
  
Real estate loans:
                                    
Commercial
    
-
      
3
    

-
    

1,407
    

-
    

1,407
  
Total
    
-
      
3
    
$
-
    
$
1,407
    
$
-
    
$
1,407
  
Allowance for Loan Losses by Impairment Method

The following table segregates the allowance for loan losses (ALLL) into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2022 and December 31, 2021, respectively (in thousands):

 
September 30, 2022
    
December 31, 2021
  
   
Individually
evaluated for
impairment
    
Collectively
evaluated for
impairment
    
Total
    
Individually
evaluated for
impairment
    
Collectively
evaluated for
impairment
    
Total
  
Real estate loans:
                                    
Residential
  
$
6
    
$
999
    
$
1,005
    
$
12
    
$
1,135
    
$
1,147
  
Commercial
    
60
      
9,877
      
9,937
      
61
      
8,038
      
8,099
  
Agricultural
    
24
      
4,514
      
4,538
      
14
      
4,715
      
4,729
  
Construction
    
-
      
678
      
678
      
-
      
434
      
434
  
Consumer
    
4
      
228
      
232
      
-
      
262
      
262
  
Other commercial loans
    
13
      
380
      
393
      
34
      
989
      
1,023
  
Other agricultural loans
    
-
      
1,359
      
1,359
      
-
      
558
      
558
  
State and political subdivision loans
    
-
      
325
      
325
      
-
      
281
      
281
  
Unallocated
    
-
      
(176
)
    
(176
)
    
-
      
771
      
771
  
Total
  
$
107
    
$
18,184
    
$
18,291
    
$
121
    
$
17,183
    
$
17,304
  
Roll forward of Allowance for Loan Losses by Portfolio Segment

The following tables roll forward the balance of the ALLL by portfolio segment for the three and nine months ended September 30, 2022 and 2021, respectively (in thousands):

 
For the three months ended September 30, 2022
  
   
Balance at
June 30, 2022
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
September 30,
 2022
    
Individually
evaluated for
impairment
    
Collectively
evaluated for
impairment
  
Real estate loans:
                                          
Residential
  
$
1,015
    
$
-
    
$
-
    
$
(10
)
  
$
1,005
     $
 6     $
 999  
Commercial
    
9,216
      
-
      
-
      
721
      
9,937
       60       9,877  
Agricultural
    
4,484
      
-
      
-
      
54
      
4,538
       24       4,514  
Construction
    
563
      
-
      
-
      
115
      
678
       -       678  
Consumer
    
464
      
(13
)
    
5
      
(224
)
    
232
       4       228  
Other commercial loans
    
1,173
      
-
      
4
      
(784
)
    
393
       13       380  
Other agricultural loans
    
446
      
-
      
-
      
913
      
1,359
       -       1,359  
State and political subdivision loans
    
323
      
-
      
-
      
2
      
325
       -       325  
Unallocated
    
(114
)
    
-
      
-
      
(62
)
    
(176
)
     -       (176 )
Total
  
$
17,570
    
$
(13
)
  
$
9
    
$
725
    
$
18,291
     $
 107     $
18,184  

 
For the three months ended September 30, 2021
  
   
Balance at
June 30, 2021
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
September 30, 2021
    
Individually
evaluated for
impairment
    
Collectively
evaluated for
impairment
  
Real estate loans:
                                          
Residential
  
$
1,174
    
$
-
    
$
-
    
$
16
    
$
1,190
     $
16     $
1,174  
Commercial
    
7,106
      
-
      
-
      
572
      
7,678
       97       7,581  
Agricultural
    
4,706
      
-
      
-
      
40
      
4,746
       12       4,734  
Construction
    
496
      
-
      
-
      
42
      
538
       -       538  
Consumer
    
85
      
(7
)
    
4
      
236
      
318
       -       318  
Other commercial loans
    
1,328
      
-
   
6
      
(203
)
    
1,131
       35       1,096  
Other agricultural loans
    
583
      
-
      
-
      
(135
)
    
448
       109       339  
State and political subdivision loans
    
404
      
-
      
-
      
(108
)
    
296
       -       296  
Unallocated
    
1,049
      
-
      
-
      
(60
)
    
989
       -       989  
Total
  
$
16,931
    
$
(7
)
  
$
10
    
$
400
    
$
17,334
     $
269     $
 17,065  

 
For the nine months ended September 30, 2022
  
   
Balance at
December 31, 2021
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
September 30,
2022
    
Individually
evaluated for
impairment
    
Collectively
evaluated for
impairment
  
Real estate loans:
                                          
Residential
  
$
1,147
    
$
-
    
$
-
    
$
(142
)
  
$
1,005
     $
 6     $
999  
Commercial
    
8,099
      
-
      
-
      
1,838
      
9,937
       60       9,877  
Agricultural
    
4,729
      
-
      
-
      
(191
)
    
4,538
       24       4,514  
Construction
    
434
      
-
      
-
      
244
      
678
       -       678  
Consumer
    
262
      
(30
)
    
15
      
(15
)
    
232
       4       228  
Other commercial loans
    
1,023
      
(434
)
    
11
      
(207
)
    
393
       13       380  
Other agricultural loans
    
558
      
-
      
-
      
801
      
1,359
       -       1,359  
State and political subdivision loans
    
281
      
-
      
-
      
44
      
325
       -       325  
Unallocated
    
771
      
-
      
-
      
(947
)
    
(176
)
     -       (176 )
Total
  
$
17,304
    
$
(464
)
  
$
26
    
$
1,425
    
$
18,291
     $
 107     $
 18,184  

 
For the nine months ended September 30, 2021
  
   
Balance at
December 31, 2020
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
September 30,
2021
    
Individually
evaluated for
impairment
    
Collectively
evaluated for
impairment
  
Real estate loans:
                                          
Residential
  
$
1,174
    
$
-
    
$
-
    
$
16
    
$
1,190
     $
 16     $
 1,174  
Commercial
    
6,216
      
-
      
89
      
1,373
      
7,678
       97       7,581  
Agricultural
    
4,953
      
-
      
-
      
(207
)
    
4,746
       12       4,734  
Construction
    
122
      
-
      
-
      
416
      
538
       -       538  
Consumer
    
321
      
(16
)
    
16
      
(3
)
    
318
       -       318  
Other commercial loans
    
1,226
      
(133
)
    
13
      
25
      
1,131
       35       1,096  
Other agricultural loans
    
864
      
-
      
-
      
(416
)
    
448
       109       339  
State and political subdivision loans
    
479
      
-
      
-
      
(183
)
    
296
       -       296  
Unallocated
    
460
      
-
      
-
      
529
      
989
       -       989  
Total
  
$
15,815
    
$
(149
)
  
$
118
    
$
1,550
    
$
17,334
     $
 269     $
 17,065