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Loans (Tables)

3 Months Ended

Mar. 31, 2022

Loan balances as of March 31, 2022 and December 31, 2021 are summarized below:

	(In Thousands)
Loans:	March 31, 2022			December 31, 2021
Consumer Real Estate	$	410,120		$	395,873
Agricultural Real Estate		196,223			198,343
Agricultural		140,709			118,368
Commercial Real Estate		910,839			848,477
Commercial and Industrial		216,918			208,270
Consumer		57,521			57,737
Other		31,573			32,089
		1,963,903			1,859,157
Less: Net deferred loan fees and costs		(1,683	)		(1,738	)
		1,962,220			1,857,419
Less: Allowance for loan losses		(16,771	)		(16,242	)
Loans - Net	$	1,945,449		$	1,841,177

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 March 31, 2022:

	(In Thousands)
	Fixed		Variable

Consumer Real Estate	$	320,351	$	89,769
Agricultural Real Estate		126,606		69,617
Agricultural		59,168		81,541
Commercial Real Estate		743,845		166,994
Commercial and Industrial		120,483		96,435
Consumer		52,935		4,586
Other		21,671		9,902

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 thousands) in past due loans by portfolio classification of loans as of March 31, 2022 and December 31, 2021, net of deferred loan fees and costs:

March 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	$	236	$	16	$	371	$	623	$	409,441	$	410,064	$	-
Agricultural Real Estate		-		-		-		-		195,901		195,901		-
Agricultural		673		34		-		707		140,140		140,847		-
Commercial Real Estate		-		-		180		180		909,228		909,408		-
Commercial and Industrial		7		-		273		280		248,082		248,362		-
Consumer		60		2		-		62		57,576		57,638		-
Total	$	976	$	52	$	824	$	1,852	$	1,960,368	$	1,962,220	$	-

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 class of loans as of March 31, 2022 and December 31, 2021:

	(In Thousands)
	March 31, 2022		December 31, 2021

Consumer Real Estate	$	861	$	824
Agricultural Real Estate		6,266		6,477
Agricultural		20		20
Commercial Real Estate		1,152		600
Commercial & Industrial		273		149
Consumer		9		6
Total	$	8,581	$	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 and costs, based on the most recent analysis performed as of March 31, 2022 and December 31, 2021:

	(In Thousands)
	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
March 31, 2022
1-2	$	10,420	$	2,582	$	10,521	$	1,907	$	-
3		38,929		35,331		255,646		50,159		11,323
4		128,550		101,046		619,738		159,828		20,250
5		9,328		1,585		7,269		869		-
6		8,674		303		16,234		4,026		-
7		-		-		-		-		-
8		-		-		-		-		-
Total	$	195,901	$	140,847	$	909,408	$	216,789	$	31,573

	Agricultural				Commercial		Commercial
	Real Estate		Agricultural		Real Estate		and Industrial		Other
December 31, 2021
1-2	$	8,720	$	4,178	$	10,894	$	4,604	$	-
3		42,180		38,623		238,132		46,547		11,408
4		129,301		75,164		568,038		152,736		20,681
5		4,599		227		14,509		986		-
6		13,233		312		15,537		3,176		-
7		-		-		-		-		-
8		-		-		-		-		-
Total	$	198,033	$	118,504	$	847,110	$	208,049	$	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 March 31, 2022 and December 31, 2021.

	(In Thousands)
	Consumer		Consumer
	Real Estate		Real Estate
	March 31, 2022		December 31, 2021
Grade
Pass	$	407,889	$	392,940
Special Mention (5)		864		1,673
Substandard (6)		1,311		1,192
Doubtful (7)		-		-
Total	$	410,064	$	395,805

	(In Thousands)
	Consumer - Credit				Consumer - Other
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Performing	$	3,935	$	3,906	$	53,624	$	53,820
Nonperforming		10		13		69		90
Total	$	3,945	$	3,919	$	53,693	$	53,910

Schedule of Impaired Loans

Information about impaired loans as of March 31, 2022, December 31, 2021 and March 31, 2021 are as follows:

			(In Thousands)
	March 31, 2022		December 31, 2021		March 31, 2021

Impaired loans without a valuation allowance	$	3,990	$	1,228	$	6,604
Impaired loans with a valuation allowance		8,634		10,711		5,532
Total impaired loans	$	12,624	$	11,939	$	12,136
Valuation allowance related to impaired loans	$	1,535	$	2,184	$	1,109
Total non-accrual loans	$	8,581	$	8,076	$	8,139
Total loans past-due ninety days or more and still accruing	$	-	$	-	$	-
Quarter ended average investment in impaired loans	$	12,764	$	11,676	$	13,467
Year to date average investment in impaired loans	$	12,764	$	12,247	$	13,467

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by class of loans for the three months ended March 31, 2022 and March 31, 2021 and for the year ended December 31, 2021.

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2022			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	692	$	692	$	-	$	372	$	1	$	2
Agricultural Real Estate		2,172		2,276		-		1,145		7		2
Agricultural		20		20		-		20		-		-
Commercial Real Estate		749		749		-		660		4		5
Commercial and Industrial		334		334		-		254		2		-
Consumer		23		23		-		16		-		-
With a specific allowance recorded:
Consumer Real Estate		-		-		-		-		-		-
Agricultural Real Estate		4,498		4,498		273		5,550		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		3,348		3,348		632		3,745		37		-
Commercial and Industrial		788		788		630		994		14		-
Consumer		-		-		-		8		-		-
Totals:
Consumer Real Estate	$	692	$	692	$	-	$	372	$	1	$	2
Agricultural Real Estate	$	6,670	$	6,774	$	273	$	6,695	$	7	$	2
Agricultural	$	20	$	20	$	-	$	20	$	-	$	-
Commercial Real Estate	$	4,097	$	4,097	$	632	$	4,405	$	41	$	5
Commercial and Industrial	$	1,122	$	1,122	$	630	$	1,248	$	16	$	-
Consumer	$	23	$	23	$	-	$	24	$	-	$	-

	(In Thousands)
											Interest
Year Ended December 31, 2021			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		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	$	-

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2021			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	817	$	817	$	-	$	508	$	1	$	2
Agricultural Real Estate		1,526		1,526		-		1,531		23		-
Agricultural		-		-		-		168		-		-
Commercial Real Estate		2,905		2,905		-		2,306		31		3
Commercial and Industrial		1,335		1,467		-		1,793		17		1
Consumer		21		21		-		21		-		-
With a specific allowance recorded:
Consumer Real Estate		134		134		23		179		-		2
Agricultural Real Estate		5,106		5,106		1,086		5,160		-		-
Agricultural		292		292		-		214		4		-
Commercial Real Estate		-		-		-		917		-		-
Commercial and Industrial		-		-		-		670		-		-
Consumer		-		-		-		-		-		-
Totals:
Consumer Real Estate	$	951	$	951	$	23	$	687	$	1	$	4
Agricultural Real Estate	$	6,632	$	6,632	$	1,086	$	6,691	$	23	$	-
Agricultural	$	292	$	292	$	-	$	382	$	4	$	-
Commercial Real Estate	$	2,905	$	2,905	$	-	$	3,223	$	31	$	3
Commercial and Industrial	$	1,335	$	1,467	$	-	$	2,463	$	17	$	1
Consumer	$	21	$	21	$	-	$	21	$	-	$	-

Summary of Activities in Allowance for Credit Losses

The following tables summarize the activities in the allowance for credit losses.

	(In Thousands)
	Three Months Ended			Twelve Months Ended
	March 31, 2022			December 31, 2021
Allowance for Loan & Lease Losses
Balance at beginning of year	$	16,242		$	13,672
Provision for loan loss		580			3,444
Loans charged off		(94	)		(1,332	)
Recoveries		43			458
Allowance for Loan & Lease Losses	$	16,771		$	16,242
Allowance for Unfunded Loan Commitments & Letters of Credit	$	1,076		$	1,041
Total Allowance for Credit Losses	$	17,847		$	17,283

Analysis of Allowance for Credit Losses

Additional analysis, presented in thousands, related to the allowance for credit losses for the three months ended March 31, 2022 and March 31, 2021 in addition to the ending balances as of December 31, 2021 is as follows:

	Consumer Real Estate		Agricultural Real Estate			Agricultural		Commercial Real Estate		Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
Three Months Ended March 31, 2022
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	857	$	1,040		$	709	$	9,130	$	3,847		$	625		$	1,041	$	34		17,283
Charge Offs		-		-			-		-		(6	)		(88	)		-		-		(94	)
Recoveries		5		-			-		2		9			27			-		-		43
Provision (Credit)		30		(434	)		135		441		216			59			-		133		580
Other Non-interest expense related to unfunded		-		-			-		-		-			-			35		-		35
Ending Balance	$	892	$	606		$	844	$	9,573	$	4,066		$	623		$	1,076	$	167	$	17,847
Ending balance: individually evaluated for impairment	$	-	$	273		$	-	$	632	$	630		$	-		$	-	$	-	$	1,535
Ending balance: collectively evaluated for impairment	$	892	$	333		$	844	$	8,941	$	3,436		$	623		$	1,076	$	167	$	16,312
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-		$	-	$	-	$	-		$	-		$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	410,064	$	195,901		$	140,847	$	909,408	$	248,362		$	57,638		$	-	$	-	$	1,962,220
Ending balance: individually evaluated for impairment	$	692	$	6,670		$	20	$	4,097	$	1,122		$	23		$	-	$	-	$	12,624
Ending balance: collectively evaluated for impairment	$	408,694	$	189,033		$	140,827	$	905,076	$	246,904		$	57,615		$	-	$	-	$	1,948,149
Ending balance: loans acquired with deteriorated credit quality	$	678	$	198		$	-	$	235	$	336		$	-		$	-	$	-	$	1,447

December 31, 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:
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

	Consumer Real Estate			Agricultural Real Estate		Agricultural			Commercial Real Estate		Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
Three Months Ended March 31, 2021
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	633		$	958	$	701		$	7,415	$	3,346		$	606		$	641	$	13	$	14,313
Charge Offs		-			-		(142	)		-		(809	)		(62	)		-		-		(1,013	)
Recoveries		3			-		-			2		5			56			-		-		66
Provision (Credit)		(12	)		428		57			251		66			(5	)		-		915		1,700
Other Non-interest expense related to unfunded		-			-		-			-		-			-			411		-		411
Ending Balance	$	624		$	1,386	$	616		$	7,668	$	2,608		$	595		$	1,052	$	928	$	15,477
Ending balance: individually evaluated for impairment	$	23		$	1,086	$	-		$	-	$	-		$	-		$	-	$	-	$	1,109
Ending balance: collectively evaluated for impairment	$	601		$	300	$	616		$	7,668	$	2,608		$	595		$	1,052	$	928	$	14,368
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-		$	-	$	-		$	-		$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	175,481		$	179,639	$	100,147		$	617,512	$	214,341		$	54,559		$	-	$	-	$	1,341,679
Ending balance: individually evaluated for impairment	$	951		$	6,632	$	292		$	2,905	$	1,335		$	21		$	-	$	-	$	12,136
Ending balance: collectively evaluated for impairment	$	174,489		$	173,007	$	99,855		$	614,607	$	212,927		$	54,538		$	-	$	-	$	1,329,423
Ending balance: loans acquired with deteriorated credit quality	$	41		$	-	$	-		$	-	$	79		$	-		$	-	$	-	$	120