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Loans (Tables)

12 Months Ended

Dec. 31, 2022

Loans at December 31 are summarized below:


	(In Thousands)
Loans:	2022			2021
Consumer Real Estate	$	494,423		$	395,873
Agricultural Real Estate		220,819			198,343
Agricultural		128,733			118,368
Commercial Real Estate		1,152,603			848,477
Commercial and Industrial		242,360			208,270
Consumer		89,147			57,737
Other		29,818			32,089
		2,357,903			1,859,157
Less: Net deferred loan fees and costs		(1,516	)		(1,738	)
		2,356,387			1,857,419
Less: Allowance for loan losses		(20,313	)		(16,242	)
Loans - Net	$	2,336,074		$	1,841,177

Contractual Maturity Schedule by Major Category of Loans Excluding Fair Value Adjustments

The following is a maturity schedule by major category of loans excluding fair value adjustments at December 31, 2022:


	(In Thousands)
			After One
	Within		Year Within		After
	One Year		Five Years		Five Years		Total
Consumer Real Estate	$	8,890	$	34,961	$	456,556	$	500,407
Agricultural Real Estate		525		7,116		214,297		221,938
Agricultural		59,119		47,113		22,544		128,776
Commercial Real Estate		26,670		336,890		789,304		1,152,864
Commercial and Industrial		81,552		108,729		52,715		242,996
Consumer		2,089		47,052		40,357		89,498
Other		235		1,219		28,375		29,829
	$	179,080	$	583,080	$	1,604,148	$	2,366,308

Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of December 31, 2022:


	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	354,420	$	140,003
Agricultural Real Estate		144,702		76,117
Agricultural		52,867		75,866
Commercial Real Estate		941,927		210,676
Commercial and Industrial		130,513		111,847
Consumer		88,972		175
Other		20,029		9,789

Contractual Aging of Recorded Investment in Past Due Loans by Portfolio Classification of Loans

The following table represents the contractual aging of the recorded investment in past due loans by portfolio classification of loans as of December 31, 2022 and 2021, net of deferred loan fees and costs:


December 31, 2022	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Consumer Real Estate	$	1,536	$	635	$	90	$	2,261	$	492,162	$	494,423	$	-
Agricultural Real Estate		118		2		1,550		1,670		218,844		220,514		-
Agricultural		433		-		152		585		128,341		128,926		-
Commercial Real Estate		74		-		180		254		1,150,257		1,150,511		-
Commercial and Industrial		953		-		182		1,135		270,984		272,119		-
Consumer		83		37		-		120		89,774		89,894		-
Total	$	3,197	$	674	$	2,154	$	6,025	$	2,350,362	$	2,356,387	$	-


December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Consumer Real Estate	$	228	$	-	$	246	$	474	$	395,331	$	395,805	$	-
Agricultural Real Estate		436		-		-		436		197,597		198,033		-
Agricultural		-		-		-		-		118,504		118,504		-
Commercial Real Estate		-		-		180		180		846,930		847,110		-
Commercial and Industrial		21		131		149		301		239,837		240,138		-
Consumer		64		-		-		64		57,765		57,829		-
Total	$	749	$	131	$	575	$	1,455	$	1,855,964	$	1,857,419	$	-

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

The following table presents the recorded investment in nonaccrual loans by portfolio class of loans as of December 31, 2022 and December 31, 2021:


	(In Thousands)
	2022		2021
Consumer Real Estate	$	612	$	824
Agricultural Real Estate		1,921		6,477
Agriculture		152		20
Commercial Real Estate		903		600
Commercial and Industrial		1,096		149
Consumer		5		6
Total	$	4,689	$	8,076

Risk Category of Loans by Portfolio Class

The following table represents the risk category of loans by portfolio class, net of deferred fees, based on the most recent analysis performed as of the time periods shown of December 31, 2022 and December 31, 2021.


	(In Thousands)
	Agricultural Real Estate				Agricultural				Commercial Real Estate				Commercial and Industrial				Other
	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
1-2	$	9,912	$	8,720	$	5,857	$	4,178	$	8,718	$	10,894	$	780	$	4,604	$	-	$	-
3		47,405		42,180		33,671		38,623		370,035		238,132		67,506		46,547		10,921		11,408
4		146,143		129,301		88,992		75,164		737,745		568,038		167,291		152,736		18,897		20,681
5		10,389		4,599		228		227		9,751		14,509		3,592		986		-		-
6		6,665		13,233		178		312		24,262		15,537		3,132		3,176		-		-
7		-		-		-		-		-		-		-		-		-		-
8		-		-		-		-		-		-		-		-		-		-
Total	$	220,514	$	198,033	$	128,926	$	118,504	$	1,150,511	$	847,110	$	242,301	$	208,049	$	29,818	$	32,089

Recorded Investment for Consumer Loans, Credit Quality based on Status of Loan and Payment Activity

The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of December 31, 2022 and December 31, 2021.


	(In Thousands)
	Consumer Real Estate
	2022		2021
Grade
Pass	$	492,575	$	392,940
Special mention (5)		676		1,673
Substandard (6)		1,172		1,192
Doubtful (7)		-		-
Total	$	494,423	$	395,805


	(In Thousands)
	Consumer - Credit Card				Consumer - Other
	2022		2021		2022		2021
Performing	$	-	$	3,906	$	89,853	$	53,820
Nonperforming		-		13		41		90
Total	$	-	$	3,919	$	89,894	$	53,910

Schedule of Impaired Loans

Information about impaired loans as of and for the years ended December 31, 2022 and 2021 is as follows:


	(In Thousands)
	2022		2021
Impaired loans without a valuation allowance	$	4,194	$	1,228
Impaired loans with a valuation allowance		4,663		10,711
Total impaired loans	$	8,857	$	11,939
Valuation allowance related to impaired loans	$	1,996	$	2,184
Total nonaccrual loans	$	4,689	$	8,076
Total loans past-due ninety days or more and still accruing	$	-	$	-


	(In Thousands)
	2022		2021		2020
Average investment in impaired loans	$	10,710	$	12,247	$	10,232
Interest income recognized on impaired loans	$	361	$	292	$	269
Interest income recognized on a cash basis on impaired loans	$	97	$	188	$	135

Impaired Loans Classified as Troubled Debt Restructured


December 31, 2022							December 31, 2021
			(In thousands)							(In thousands)
Troubled Debt Restructurings	Number of Contracts Modified in the Last 12 Months		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Troubled Debt Restructurings	Number of Contracts Modified in the Last 12 Months		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Consumer Real Estate		1	$	95	$	95	Consumer Real Estate		-	$	-	$	-
Agricultural Real Estate		-		-		-	Agricultural Real Estate		1		1,655		1,655
Agricultural		-		-		-	Agricultural		-		-		-
Commercial Real Estate		1		74		74	Commercial Real Estate		1		382		382
Commercial and Industrial		2		1,232		1,232	Commercial and Industrial		1		1,000		1,000

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by portfolio class of loans as of December 31, 2022 and 2021:


	(In Thousands)
2022	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	509	$	509	$	-	$	355	$	5	$	12
Agricultural Real Estate		2,280		2,385		-		2,048		25		6
Agricultural		152		152		-		588		-		2
Commercial Real Estate		1,234		1,272		-		1,252		29		43
Commercial and Industrial		17		417		-		135		2		10
Consumer		2		2		-		15		1		-
With a specific allowance recorded:
Consumer Real Estate		60		60		6		15		-		1
Agricultural Real Estate		-		-		-		1,388		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		2,874		2,874		438		3,176		150		-
Commercial and Industrial		1,564		1,564		1,551		1,736		149		23
Consumer		165		165		1		2		-		-
Totals:
Consumer Real Estate	$	569	$	569	$	6	$	370	$	5	$	13
Agricultural Real Estate	$	2,280	$	2,385	$	-	$	3,436	$	25	$	6
Agricultural	$	152	$	152	$	-	$	588	$	-	$	2
Commercial Real Estate	$	4,108	$	4,146	$	438	$	4,428	$	179	$	43
Commercial and Industrial	$	1,581	$	1,981	$	1,551	$	1,871	$	151	$	33
Consumer	$	167	$	167	$	1	$	17	$	1	$	-


	(In Thousands)
2021	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	604	$	604	$	-	$	456	$	5	$	15
Agricultural Real Estate		423		423		-		1,000		33		-
Agricultural		-		-		-		143		18		3
Commercial Real Estate		180		180		-		1,445		70		9
Commercial and Industrial		21		21		-		920		24		158
Consumer		-		-		-		17		-		-
With a specific allowance recorded:
Consumer Real Estate		-		-		-		59		-		-
Agricultural Real Estate		6,302		6,406		691		5,414		54		-
Agricultural		20		20		1		94		-		-
Commercial Real Estate		3,381		3,381		664		2,199		70		3
Commercial and Industrial		982		982		825		498		17		-
Consumer		26		26		3		2		1		-
Totals:
Consumer Real Estate	$	604	$	604	$	-	$	515	$	5	$	15
Agricultural Real Estate	$	6,725	$	6,829	$	691	$	6,414	$	87	$	-
Agricultural	$	20	$	20	$	1	$	237	$	18	$	3
Commercial Real Estate	$	3,561	$	3,561	$	664	$	3,644	$	140	$	12
Commercial and Industrial	$	1,003	$	1,003	$	825	$	1,418	$	41	$	158
Consumer	$	26	$	26	$	3	$	19	$	1	$	-

Summary of Activities in Allowance for Credit Losses

The following is an analysis of the allowance for credit losses for the years ended December 31:


	(In Thousands)
	2022			2021			2020
Allowance for Loan Losses
Balance at beginning of year	$	16,242		$	13,672		$	7,228
Provision for loan loss		4,600			3,444			6,981
Loans charged off		(827	)		(1,332	)		(720	)
Recoveries		298			458			183
Balance at ending of year	$	20,313		$	16,242		$	13,672
Allowance for Unfunded Loan Commitments & Letters of Credit	$	1,262		$	1,041		$	641
Total Allowance for Credit Losses	$	21,575		$	17,283		$	14,313

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses as of December 31, 2022 and 2021 is as follows:


	(In Thousands)
2022	Consumer Real Estate		Agricultural Real Estate			Agricultural		Commercial Real Estate		Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated			Total
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	857	$	1,040		$	709	$	9,130	$	3,847		$	625		$	1,041	$	34		$	17,283
Charge-Offs		-		-			-		-		(418	)		(409	)		-		-			(827	)
Recoveries		20		-			7		9		93			169			-		-			298
Provision		121		(691	)		35		2,785		1,860			506			-		(16	)		4,600
Other Non-interest expense related to unfunded		-		-			-		-		-			-			221		-			221
Ending Balance	$	998	$	349		$	751	$	11,924	$	5,382		$	891		$	1,262	$	18		$	21,575
Ending balance: individually evaluated for impairment	$	6	$	-		$	-	$	438	$	1,551		$	1		$	-	$	-		$	1,996
Ending balance: collectively evaluated for impairment	$	992	$	349		$	751	$	11,486	$	3,831		$	890		$	1,262	$	18		$	19,579
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-		$	-	$	-	$	-		$	-		$	-	$	-		$	-
FINANCING RECEIVABLES:
Ending balance	$	494,423	$	220,514		$	128,926	$	1,150,511	$	272,119		$	89,894		$	-	$	-		$	2,356,387
Ending balance: individually evaluated for impairment	$	569	$	2,280		$	152	$	4,108	$	1,581		$	167		$	-	$	-		$	8,857
Ending balance: collectively evaluated for impairment	$	493,449	$	218,039		$	128,774	$	1,146,389	$	270,493		$	89,727		$	-	$	-		$	2,346,871
Ending balance: loans acquired with deteriorated credit quality	$	405	$	195		$	-	$	14	$	45		$	-		$	-	$	-		$	659


	(In Thousands)
2021	Consumer Real Estate			Agricultural Real Estate			Agricultural			Commercial Real Estate		Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	633		$	958		$	701		$	7,415	$	3,346		$	606		$	641	$	13	$	14,313
Charge-Offs		(19	)		(105	)		(143	)		-		(814	)		(251	)		-		-		(1,332	)
Recoveries		13			-			14			10		257			164			-		-		458
Provision (Credit)		230			187			137			1,705		1,058			106			-		21		3,444
Other Non-interest expense related to unfunded		-			-			-			-		-			-			400		-		400
Ending Balance	$	857		$	1,040		$	709		$	9,130	$	3,847		$	625		$	1,041	$	34	$	17,283
Ending balance: individually evaluated for impairment	$	-		$	691		$	1		$	664	$	825		$	3		$	-	$	-	$	2,184
Ending balance: collectively evaluated for impairment	$	857		$	349		$	708		$	8,466	$	3,022		$	622		$	1,041	$	34	$	15,099
Ending balance: loans acquired with deteriorated credit quality	$	37		$	-		$	-		$	-	$	-		$	-		$	-	$	-	$	37
FINANCING RECEIVABLES:
Ending balance	$	395,805		$	198,033		$	118,504		$	847,110	$	240,138		$	57,829		$	-	$	-	$	1,857,419
Ending balance: individually evaluated for impairment	$	604		$	6,725		$	20		$	3,561	$	1,003		$	26		$	-	$	-	$	11,939
Ending balance: collectively evaluated for impairment	$	394,489		$	191,107		$	118,484		$	843,299	$	238,849		$	57,803		$	-	$	-	$	1,844,031
Ending balance: loans acquired with deteriorated credit quality	$	712		$	201		$	-		$	250	$	286		$	-		$	-	$	-	$	1,449