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Loans (Tables)

12 Months Ended

Dec. 31, 2023

Loans at December 31 are summarized below:


	(In Thousands)
Loans:	2023			2022
Consumer Real Estate	$	521,895		$	494,423
Agricultural Real Estate		223,791			220,819
Agricultural		132,560			128,733
Commercial Real Estate		1,337,766			1,152,603
Commercial and Industrial		254,935			242,360
Consumer		79,591			89,147
Other		30,136			29,818
		2,580,674			2,357,903
Less: Net deferred loan fees and costs and other*		517			(1,516	)
		2,581,191			2,356,387
Less: Allowance for credit losses		(25,024	)		(20,313	)
Loans - Net	$	2,556,167		$	2,336,074

*This chart contains fair value adjustments to the basis of derivatives in the amount of $2.7 million at December 31, 2023. No derivatives existed at December 31, 2022.

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, 2023:


	(In Thousands)
			After One		After Five
	Within		Year Within		Years Within		After
	One Year		Five Years		Fifteen Years		Fifteen Years		Total
Consumer Real Estate	$	12,307	$	33,817	$	157,139	$	322,639	$	525,902
Agricultural Real Estate		546		6,149		63,073		154,648		224,416
Agricultural		62,926		47,053		19,184		3,430		132,593
Commercial Real Estate		109,232		382,123		619,438		227,126		1,337,919
Commercial and Industrial		97,823		103,806		52,981		828		255,438
Consumer		2,036		58,115		19,561		94		79,806
Other		2,855		1,452		16,251		9,584		30,142
	$	287,725	$	632,515	$	947,627	$	718,349	$	2,586,216

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, 2023:


	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	329,142	$	192,753
Agricultural Real Estate		123,783		100,008
Agricultural		56,269		76,291
Commercial Real Estate		1,024,989		312,777
Commercial and Industrial		131,385		123,550
Consumer		79,526		65
Other		20,552		9,584

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, 2023 and 2022, net of deferred loan fees and costs:


	(In Thousands)
December 31, 2023	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	$	1,914	$	137	$	670	$	2,721	$	519,187	$	521,908	$	-
Agricultural Real Estate		-		3,429		55		3,484		219,995		223,479		-
Agricultural		-		1,132		2,977		4,109		128,654		132,763		-
Commercial Real Estate		380		-		255		635		1,334,440		1,335,075		-
Commercial and Industrial		145		-		199		344		284,550		284,894		-
Consumer		218		37		26		281		80,072		80,353		-
Total	$	2,657	$	4,735	$	4,182	$	11,574	$	2,566,898	$	2,578,472	$	-


	(In Thousands)
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	$	-

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

The following tables present the recorded investment in nonaccrual loans by portfolio class of loans as of December 31, 2023 and December 31, 2022:


	(In Thousands)
	December 31, 2023
	Nonaccrual				Loans Past
	With No				Due Over
	Allowance				89 Days
	for Credit Loss		Nonaccrual		Still Accruing

Consumer Real Estate	$	1,006	$	1,190	$	-
Agricultural Real Estate		15,949		15,949		-
Agricultural		4,671		4,671		-
Commercial Real Estate		254		254		-
Commercial & Industrial		198		198		-
Consumer		91		91		-
Total	$	22,169	$	22,353	$	-

Interest income that would have been recorded under the original terms of these loans would have aggregated $1.6 million for 2023 and $157 thousand for 2022.


	(In Thousands)
	2022
Consumer Real Estate	$	612
Agricultural Real Estate		1,921
Agriculture		152
Commercial Real Estate		903
Commercial and Industrial		1,096
Consumer		5
Total	$	4,689

Risk Category of Loans by Portfolio Class Based on Year of Origination

The following table reflects the risk category of loans by portfolio class based on the most recent analysis performed as of December 31, 2023 based on year of origination:


	(In Thousands)
	Term Loans Amortized Cost Basis by Origination Year
													Revolving
													Loans
											Term		Amortized		Grand
	2023		2022		2021		2020		Prior		Total		Cost Basis		Total

Consumer Real Estate
Risk Rating
Pass (1-4)	$	77,298	$	88,695	$	90,139	$	82,680	$	126,596	$	465,408	$	52,904	$	518,312
Special Mention (5)		1,228		40		-		-		134		1,402		-		1,402
Substandard (6)		-		261		558		163		1,198		2,180		14		2,194
Doubtful (7)		-		-		-		-		-		-		-		-
Total Consumer Real Estate	$	78,526	$	88,996	$	90,697	$	82,843	$	127,928	$	468,990	$	52,918	$	521,908
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Agricultural Real Estate
Risk Rating
Pass (1-4)	$	30,504	$	37,199	$	25,168	$	25,874	$	87,107	$	205,852	$	97	$	205,949
Special Mention (5)		-		861		14		-		508		1,383		-		1,383
Substandard (6)		-		-		12,196		186		3,765		16,147		-		16,147
Doubtful (7)		-		-		-		-		-		-		-		-
Total Agricultural Real Estate	$	30,504	$	38,060	$	37,378	$	26,060	$	91,380	$	223,382	$	97	$	223,479
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Agricultural
Risk Rating
Pass (1-4)	$	17,787	$	20,330	$	8,356	$	4,476	$	5,736	$	56,685	$	69,824	$	126,509
Special Mention (5)		38		621		112		-		-		771		330		1,101
Substandard (6)		514		634		2,009		498		-		3,655		1,498		5,153
Doubtful (7)		-		-		-		-		-		-		-		-
Total Agricultural	$	18,339	$	21,585	$	10,477	$	4,974	$	5,736	$	61,111	$	71,652	$	132,763
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-


	(In Thousands)
	Term Loans Amortized Cost Basis by Origination Year
													Revolving
													Loans
											Term		Amortized		Grand
	2023		2022		2021		2020		Prior		Total		Cost Basis		Total

Commercial Real Estate
Risk Rating
Pass (1-4)	$	224,232	$	438,716	$	245,273	$	122,656	$	235,603	$	1,266,480	$	-	$	1,266,480
Special Mention (5)		34,864		9,100		-		10,793		12,968		67,725		-		67,725
Substandard (6)		-		-		-		-		795		795		-		795
Doubtful (7)		-		-		-		75		-		75		-		75
Total Commercial Real Estate	$	259,096	$	447,816	$	245,273	$	133,524	$	249,366	$	1,335,075	$	-	$	1,335,075
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial & Industrial
Risk Rating
Pass (1-4)	$	56,224	$	51,663	$	24,876	$	20,071	$	3,074	$	155,908	$	90,018	$	245,926
Special Mention (5)		716		69		211		146		794		1,936		6,016		7,952
Substandard (6)		74		454		-		-		48		576		122		698
Doubtful (7)		-		-		-		182		-		182		-		182
Total Commercial & Industrial	$	57,014	$	52,186	$	25,087	$	20,399	$	3,916	$	158,602	$	96,156	$	254,758
Gross charge-offs YTD	$	-	$	-	$	-	$	565	$	-	$	565	$	-	$	565

Other
Risk Rating
Pass (1-4)	$	2,810	$	-	$	16,761	$	5,790	$	4,775	$	30,136	$	-	$	30,136
Special Mention (5)		-		-		-		-		-		-		-		-
Substandard (6)		-		-		-		-		-		-		-		-
Doubtful (7)		-		-		-		-		-		-		-		-
Total Other	$	2,810	$	-	$	16,761	$	5,790	$	4,775	$	30,136	$	-	$	30,136
Gross charge-offs YTD	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

The following table presents payment performance as of December 31, 2023 by year of origination:


	(In Thousands)
	Term Loans Amortized Cost Basis by Origination Year
													Revolving
													Loans
											Term		Amortized		Grand
	2023		2022		2021		2020		Prior		Total		Cost Basis		Total

Consumer
Payment Performance
Performing	$	21,511	$	40,729	$	10,666	$	5,006	$	2,305	$	80,217	$	44	$	80,261
Nonperforming		26		58		-		6		2		92		-		92
Total Consumer	$	21,537	$	40,787	$	10,666	$	5,012	$	2,307	$	80,309	$	44	$	80,353
Gross charge-offs YTD	$	236	$	51	$	100	$	38	$	-	$	425	$	-	$	425

Collateral-dependent Loans

The following table presents collateral-dependent loans grouped by collateral as of December 31, 2023:


	(In Thousands)
	Collateral
	Dependent Loans
Consumer Real Estate	$	1,518
Agricultural Real Estate		15,888
Agricultural		4,998
Commercial Real Estate		255
Commercial & Industrial		17
Consumer		-
Total	$	22,676

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:


	(In Thousands)
	Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Other
	2022		2022		2022		2022		2022
1-2	$	9,912	$	5,857	$	8,718	$	780	$	-
3		47,405		33,671		370,035		67,506		10,921
4		146,143		88,992		737,745		167,291		18,897
5		10,389		228		9,751		3,592		-
6		6,665		178		24,262		3,132		-
7		-		-		-		-		-
8		-		-		-		-		-
Total	$	220,514	$	128,926	$	1,150,511	$	242,301	$	29,818

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:


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


	(In Thousands)
	Consumer - Other
	2022
Performing	$	89,853
Nonperforming		41
Total	$	89,894

Schedule of Impaired Loans

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


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


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

Impaired Loans Classified as Modified Loans for Borrowers Experiencing Financial Difficulty and Troubled Debt Restructurings


December 31, 2023							December 31, 2022
			(In thousands)							(In thousands)
Modified Loans for Borrowers Experiencing Financial Difficulty	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		-	$	-	$	-	Consumer Real Estate		1	$	95	$	95
Commercial Real Estate		1		1,024		1,024	Commercial Real Estate		1		74		74
Commercial and Industrial		-		-		-	Commercial and Industrial		2		1,232		1,232

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:


	(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	$	-

Analysis of Allowance for Credit Losses

Additional analysis related to the allowance for credit losses as of December 31, 2023 and 2022 is as follows:


	(In Thousands)
	Consumer Real Estate				Agricultural Real Estate			Agricultural			Commercial Real Estate		Commercial and Industrial			Consumer			Total
2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	998			$	349		$	751		$	11,924	$	5,382		$	909		$	20,313
Adoption of ASU 2016-13		2,874		-		(166	)		(650	)		3,501		(2,165	)		170			3,564
Provision for credit losses-loans		(326	)			24			225			1,967		(643	)		451			1,698
Charge-offs		-				-			-			-		(565	)		(425	)		(990	)
Recoveries		35				105			10			8		84			197			439
Ending Balance	$	3,581			$	312		$	336		$	17,400	$	2,093		$	1,302		$	25,024


	(In Thousands)
	Unfunded Loan Commitment & Letters of Credit
2023
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT
Beginning balance	$	1,262
Adoption of ASU 2016-13		904
Provision for credit losses-off balance sheet credit exposures		46
Charge-offs		-
Recoveries		-
Ending Balance	$	2,212


	(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 (Credit)		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