v3.25.2
Loans Receivable and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2025
Loans Receivable and Allowance for Credit Losses [Abstract]  
Composition of the Loan Portfolio

June 30, 2025

December 31, 2024

Real Estate Loans:

Residential

$

332,631

18.6

%

$

330,856

19.3

%

Commercial

736,969

41.1

716,875

41.8

Agricultural

62,077

3.5

63,488

3.7

Construction

68,013

3.8

53,020

3.1

Commercial loans

229,182

12.8

211,991

12.4

Other agricultural loans

27,132

1.5

30,077

1.7

Consumer loans to individuals

335,040

18.7

307,775

18.0

Total loans

1,791,044

100.0

%

1,714,082

100.0

%

Deferred fees, net

(470)

(444)

Total loans receivable

1,790,574

1,713,638

Allowance for credit losses

(20,908)

(19,843)

Net loans receivable

$

1,769,666

$

1,693,795
Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment

Real Estate Loans

Commercial

Other

Consumer

Residential

Commercial

Agricultural

Construction

Loans

Agricultural

Loans

Total

June 30, 2025

(In thousands)

Individually evaluated

$

982

$

7,163

$

—

$

50

$

829

$

—

$

1,204

$

10,228

Collectively evaluated

331,649

729,806

62,077

67,963

228,353

27,132

333,836

1,780,816

Total Loans

$

332,631

$

736,969

$

62,077

$

68,013

$

229,182

$

27,132

$

335,040

$

1,791,044

Real Estate Loans

Commercial

Other

Consumer

Residential

Commercial

Agricultural

Construction

Loans

Agricultural

Loans

Total

(In thousands)

December 31, 2024

Individually evaluated

$

940

$

7,197

$

—

$

—

$

854

$

—

$

1,031

$

10,022

Collectively evaluated

329,916

709,678

63,488

53,020

211,137

30,077

306,744

1,704,060

Total Loans

$

330,856

$

716,875

$

63,488

$

53,020

$

211,991

$

30,077

$

307,775

$

1,714,082
Loan Portfolio Summarized by the Past Due Status

 

Current

31-60 Days Past Due

61-90 Days Past Due

Greater than 90 Days Past Due and still accruing

Non-accrual

Total Past Due and Non-Accrual

Total Loans

June 30, 2025

Real Estate loans

Residential

$

330,972

$

128

$

549

$

-

$

982

$

1,659

$

332,631

Commercial

729,599

1,319

341

-

5,710

7,370

736,969

Agricultural

62,029

-

48

-

-

48

62,077

Construction

67,963

-

-

-

50

50

68,013

Commercial loans

228,832

128

77

-

145

350

229,182

Other agricultural loans

27,132

-

-

-

-

-

27,132

Consumer loans

332,778

825

233

-

1,204

2,262

335,040

Total

$

1,779,305

$

2,400

$

1,248

$

-

$

8,091

$

11,739

$

1,791,044

Current

31-60 Days Past Due

61-90 Days Past Due

Greater than 90 Days Past Due and still accruing

Non-accrual

Total Past Due and Non-Accrual

Total Loans

December 31, 2024

Real Estate loans

Residential

$

329,578

$

70

$

268

$

-

$

940

$

1,278

$

330,856

Commercial

709,821

1,182

129

-

5,743

7,054

716,875

Agricultural

63,488

-

-

-

-

63,488

Construction

53,009

11

-

-

-

11

53,020

Commercial loans

211,520

194

117

33

127

471

211,991

Other agricultural loans

30,028

49

-

-

-

49

30,077

Consumer loans

305,676

805

263

121

910

2,099

307,775

Total

$

1,703,120

$

2,311

$

777

$

154

$

7,720

$

10,962

$

1,714,082
Allowance for Credit Losses and Recorded Investment in Financing Receivables

(In thousands)

Residential Real Estate

Commercial Real Estate

Agricultural

Construction

Commercial

Other Agricultural

Consumer

Total

Beginning balance, December 31, 2024

$

1,146

$

11,406

$

48

$

884

$

1,732

$

162

$

4,465

$

19,843

Charge Offs

-

(49)

-

-

-

(48)

(783)

(880)

Recoveries

-

-

-

-

96

-

85

181

(Release of) Provision for credit losses

(135)

(318)

(9)

279

105

50

1,792

1,764

Ending balance, June 30, 2025

$

1,011

$

11,039

$

39

$

1,163

$

1,933

$

164

$

5,559

$

20,908

Ending balance individually evaluated

$

-

$

315

$

-

$

-

$

-

$

-

$

294

$

609

Ending balance collectively evaluated

$

1,011

$

10,724

$

39

$

1,163

$

1,933

$

164

$

5,265

$

20,299

(In thousands)

Residential Real Estate

Commercial Real Estate

Farmland

Construction

Commercial

Other Agricultural

Consumer

Total

Beginning balance, March 31, 2025

$

1,015

$

10,585

$

81

$

985

$

1,972

$

169

$

5,635

$

20,442

Charge Offs

-

-

-

-

-

(10)

(454)

(464)

Recoveries

-

-

-

-

42

-

47

89

(Release of) Provision for credit losses

(4)

454

(42)

178

(81)

5

331

841

Ending balance, June 30, 2025

$

1,011

$

11,039

$

39

$

1,163

$

1,933

$

164

$

5,559

$

20,908

(In thousands)

Residential Real Estate

Commercial Real Estate

Agricultural

Construction

Commercial

Other Agricultural

Consumer

Total

Beginning balance, December 31, 2023

$

1,351

$

11,871

$

58

$

933

$

1,207

$

94

$

3,454

$

18,968

Charge Offs

-

-

-

-

(85)

-

(939)

(1,024)

Recoveries

42

104

-

-

-

-

44

190

(Release of) Provision for credit losses

(262)

(2,423)

(17)

(93)

913

36

1,518

(328)

Ending balance, June 30, 2024

$

1,131

$

9,552

$

41

$

840

$

2,035

$

130

$

4,077

$

17,806

Ending balance individually evaluated
‎for impairment

$

-

$

-

$

-

$

-

$

-

$

-

$

164

$

164

Ending balance collectively evaluated
‎for impairment

$

1,131

$

9,552

$

41

$

840

$

2,035

$

130

$

3,913

$

17,642

(In thousands)

Residential Real Estate

Commercial Real Estate

Farmland

Construction

Commercial

Other Agricultural

Consumer

Total

Beginning balance, March 31, 2024

$

1,197

$

9,831

$

84

$

831

$

1,987

$

168

$

3,922

$

18,020

Charge Offs

-

-

-

-

(30)

-

(500)

(530)

Recoveries

-

2

-

-

-

-

17

19

(Release of) Provision for credit losses

(66)

(281)

(43)

9

78

(38)

638

297

Ending balance, June 30, 2024

$

1,131

$

9,552

$

41

$

840

$

2,035

$

130

$

4,077

$

17,806
Summary of Carrying Value of Loan on Nonaccrual Status

Nonaccrual

Nonaccrual

Loans Past Due

with no

with

Total

Over 90 Days

Total

ACL

ACL

Nonaccrual

Still Accruing

Nonperforming

June 30, 2025

Real Estate loans

Residential

$

982

$

-

$

982

$

-

$

982

Commercial

5,689

21

5,710

-

5,710

Agricultural

-

-

-

-

-

Construction

50

-

50

-

50

Commercial loans

145

-

145

-

145

Other agricultural loans

-

-

-

-

-

Consumer loans

288

916

1,204

-

1,204

Total

$

7,154

$

937

$

8,091

$

-

$

8,091

Nonaccrual

Nonaccrual

Loans Past Due

with no

with

Total

Over 90 Days

Total

ACL

ACL

Nonaccrual

Still Accruing

Nonperforming

December 31, 2024

Real Estate loans

Residential

$

936

$

4

$

940

$

-

$

940

Commercial

5,739

4

5,743

-

5,743

Agricultural

-

-

-

-

-

Construction

-

-

-

-

-

Commercial loans

127

-

127

33

160

Other agricultural loans

-

-

-

-

-

Consumer loans

570

340

910

121

1,031

Total

$

7,372

$

348

$

7,720

$

154

$

7,874
Summary of Recorded Investment by Internal Risk Rating Systems Based on the most recent analysis performed, the following table presents the recorded investment in non-homogenous pools by internal risk rating systems (in thousands):

 

Revolving

Revolving

Term Loans Amortized Costs Basis by Origination Year

Loans

Loans

Amortized

Converted

June 30, 2025

2025

2024

2023

2022

2021

Prior

Cost Basis

to Term

Total

Commercial real estate

Risk Rating

Pass

$

60,518

$

101,229

$

71,736

$

118,247

$

93,843

$

257,872

$

19,688

$

-

$

723,133

Special Mention

-

4

-

255

-

1,901

-

-

2,160

Substandard

-

135

-

-

2,470

8,671

400

-

11,676

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

60,518

$

101,368

$

71,736

$

118,502

$

96,313

$

268,444

$

20,088

$

-

$

736,969

Commercial real estate

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

49

$

-

$

-

$

49

Real Estate - Agriculture

Risk Rating

Pass

$

1,817

$

6,081

$

3,741

$

11,712

$

3,843

$

33,955

$

324

$

-

$

61,473

Special Mention

-

-

-

-

-

429

150

-

579

Substandard

-

-

-

-

-

-

25

-

25

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

1,817

$

6,081

$

3,741

$

11,712

$

3,843

$

34,384

$

499

$

-

$

62,077

Real Estate - Agriculture

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Commercial loans

Risk Rating

Pass

$

40,841

$

46,075

$

28,062

$

27,408

$

14,956

$

22,119

$

46,451

$

-

$

225,912

Special Mention

-

-

-

23

-

95

14

-

132

Substandard

-

-

265

392

648

858

975

-

3,138

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

40,841

$

46,075

$

28,327

$

27,823

$

15,604

$

23,072

$

47,440

$

-

$

229,182

Commercial loans

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Other agricultural loans

Risk Rating

Pass

$

1,321

$

3,477

$

1,522

$

2,914

$

2,086

$

5,567

$

8,663

$

-

$

25,550

Special Mention

-

-

-

-

-

107

-

-

107

Substandard

-

-

-

-

-

-

1,475

-

1,475

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

1,321

$

3,477

$

1,522

$

2,914

$

2,086

$

5,674

$

10,138

$

-

$

27,132

Other agricultural loans

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

48

$

-

Total

Risk Rating

Pass

$

104,497

$

156,862

$

105,061

$

160,281

$

114,728

$

319,513

$

75,126

$

-

$

1,036,068

Special Mention

-

4

-

278

-

2,532

164

-

2,978

Substandard

-

135

265

392

3,118

9,529

2,875

-

16,314

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

104,497

$

157,001

$

105,326

$

160,951

$

117,846

$

331,574

$

78,165

$

-

$

1,055,360


‎

Revolving

Revolving

Term Loans Amortized Costs Basis by Origination Year

Loans

Loans

Amortized

Converted

December 31, 2024

2024

2023

2022

2021

2020

Prior

Cost Basis

to Term

Total

Commercial real estate

Risk Rating

Pass

$

102,773

$

74,242

$

121,881

$

104,720

$

60,941

$

217,435

$

20,829

$

-

$

702,821

Special Mention

5

-

262

-

-

2,148

-

-

2,415

Substandard

135

-

-

2,461

1,405

7,238

400

-

11,639

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

102,913

$

74,242

$

122,143

$

107,181

$

62,346

$

226,821

$

21,229

$

-

$

716,875

Commercial real estate

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Real Estate - Agriculture

Risk Rating

Pass

$

6,257

$

3,756

$

12,036

$

3,960

$

7,148

$

29,038

$

336

$

-

$

62,531

Special Mention

-

-

-

-

-

773

150

-

923

Substandard

-

-

-

-

-

-

34

-

34

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

6,257

$

3,756

$

12,036

$

3,960

$

7,148

$

29,811

$

520

$

-

$

63,488

Real Estate - Agriculture

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Commercial loans

Risk Rating

Pass

$

57,939

$

34,088

$

29,465

$

19,163

$

10,233

$

15,042

$

42,906

$

-

$

208,836

Special Mention

-

-

25

-

-

106

14

-

145

Substandard

-

277

429

711

-

743

850

-

3,010

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

57,939

$

34,365

$

29,919

$

19,874

$

10,233

$

15,891

$

43,770

$

-

$

211,991

Commercial loans

Current period gross charge-offs

$

-

$

11

$

-

$

-

$

8

$

51

$

30

$

-

$

100

Other agricultural loans

Risk Rating

Pass

$

4,358

$

1,836

$

3,721

$

2,379

$

2,134

$

4,353

$

9,697

$

-

$

28,478

Special Mention

-

-

-

-

-

127

-

-

127

Substandard

-

-

-

-

-

-

1,472

-

1,472

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

4,358

$

1,836

$

3,721

$

2,379

$

2,134

$

4,480

$

11,169

$

-

$

30,077

Other agricultural loans

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Total

Risk Rating

Pass

$

171,327

$

113,922

$

167,103

$

130,222

$

80,456

$

265,868

$

73,768

$

-

$

1,002,666

Special Mention

5

-

287

-

-

3,154

164

-

3,610

Substandard

135

277

429

3,172

1,405

7,981

2,756

-

16,155

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

171,467

$

114,199

$

167,819

$

133,394

$

81,861

$

277,003

$

76,688

$

-

$

1,022,431
Summary of Recorded Investment in Loan Classes Based on Payment Activity

Revolving

Revolving

Term Loans Amortized Costs Basis by Origination Year

Loans

Loans

Amortized

Converted

June 30, 2025

2025

2024

2023

2022

2021

Prior

Cost Basis

to Term

Total

Residential real estate

Payment Performance

Performing

$

9,024

$

29,670

$

40,390

$

56,912

$

50,204

$

114,600

$

30,849

$

-

$

331,649

Nonperforming

-

-

125

218

174

428

37

-

982

Total

$

9,024

$

29,670

$

40,515

$

57,130

$

50,378

$

115,028

$

30,886

$

-

$

332,631

Residential real estate

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Construction

Payment Performance

Performing

$

6,971

$

35,973

$

13,639

$

8,679

$

342

$

118

$

2,241

$

-

$

67,963

Nonperforming

-

-

-

50

-

-

-

-

50

Total

$

6,971

$

35,973

$

13,639

$

8,729

$

342

$

118

$

2,241

$

-

$

68,013

Construction

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Consumer loans to individuals

Payment Performance

Performing

$

74,280

$

111,882

$

77,601

$

42,260

$

12,300

$

14,736

$

777

$

-

$

333,836

Nonperforming

73

209

351

369

109

93

-

-

1,204

Total

$

74,353

$

112,091

$

77,952

$

42,629

$

12,409

$

14,829

$

777

$

-

$

335,040

Consumer loans to individuals

Current period gross charge-offs

$

3

$

191

$

229

$

209

$

59

$

92

$

-

$

-

$

783

Total

Payment Performance

Performing

$

90,275

$

177,525

$

131,630

$

107,851

$

62,846

$

129,454

$

33,867

$

-

$

733,448

Nonperforming

73

209

476

637

283

521

37

-

2,236

Total

$

90,348

$

177,734

$

132,106

$

108,488

$

63,129

$

129,975

$

33,904

$

-

$

735,684

Revolving

Revolving

Term Loans Amortized Costs Basis by Origination Year

Loans

Loans

Amortized

Converted

December 31, 2024

2024

2023

2022

2021

2020

Prior

Cost Basis

to Term

Total

Residential real estate

Payment Performance

Performing

$

22,842

$

41,384

$

60,194

$

52,712

$

32,161

$

89,965

$

30,658

$

-

$

329,916

Nonperforming

-

125

52

184

-

560

19

-

940

Total

$

22,842

$

41,509

$

60,246

$

52,896

$

32,161

$

90,525

$

30,677

$

-

$

330,856

Residential real estate

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Construction

Payment Performance

Performing

$

28,817

$

12,986

$

9,024

$

431

$

-

$

144

$

1,618

$

-

$

53,020

Nonperforming

-

-

-

-

-

-

-

-

-

Total

$

28,817

$

12,986

$

9,024

$

431

$

-

$

144

$

1,618

$

-

$

53,020

Construction

Current period gross charge-offs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Consumer loans to individuals

Payment Performance

Performing

$

125,254

$

93,392

$

52,009

$

15,679

$

8,316

$

11,207

$

887

$

-

$

306,744

Nonperforming

97

401

377

114

26

16

-

-

1,031

Total

$

125,351

$

93,793

$

52,386

$

15,793

$

8,342

$

11,223

$

887

$

-

$

307,775

Consumer loans to individuals

Current period gross charge-offs

$

123

$

511

$

850

$

203

$

87

$

75

$

-

$

-

$

1,849

Total

Payment Performance

Performing

$

176,913

$

147,762

$

121,227

$

68,822

$

40,477

$

101,316

$

33,163

$

-

$

689,680

Nonperforming

97

526

429

298

26

576

19

-

1,971

Total

$

177,010

$

148,288

$

121,656

$

69,120

$

40,503

$

101,892

$

33,182

$

-

$

691,651
Loan Modifications Made to Borrowers

Significant Payment Delay

Amortized Cost Basis at June 30, 2025

% of Total Class of Financing Receivable

Financial Effect

(in thousands)

Commercial real estate loans

$

295

0.04

%

Deferred principal for 6 months

Commercial loans

481

0.21

Deferred principal for 4-6 months

Consumer loans to individuals

6

0.00

Deferred principal for 4 months

Total

$

782

Term Extension

Amortized Cost Basis at June 30, 2025

% of Total Class of Financing Receivable

Financial Effect

(in thousands)

Commercial real estate loans

$

1,423

0.19

%

Added a weighted-average 6.0 months to the life of loans

Commercial loans

286

0.12

Added a weighted-average 5.0 years to the life of loans

Total

$

1,709

Combination -Significant Payment Delay and Term Extension

Amortized Cost Basis at June 30, 2025

% of Total Class of Financing Receivable

Financial Effect

Commercial real estate loans

$

3,749

0.51

%

Deferred principal for 9 months and extended term by 9 months

Total

$

3,749

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified (in thousands):

Amortized Cost Basis of Modified Loans That Subsequently Defaulted

Term Extension

Commercial real estate loans

$

1,423

$

1,423

The following table depicts the performance of loans that have been modified during the period for which a payment default has occurred (in thousands):

Payment Status (Amortized Cost Basis)

30-59 Days Past Due

60-89 Days Past Due

90 + Days Past Due

Total Past Due

Commercial real estate loans

$

1,423

$

-

$

-

$

1,423

$

1,423

$

-

$

-

$

1,423
Summary of Loan Concentrations by Industry

Account Type

Outstanding as of June 30, 2025

Percent of Loans as of June 30, 2025

Commercial Rentals

$

162,674

9.12

%

Residential Rentals

117,244

6.57

Hotels/Motels

118,552

6.65

Builders/Contractors

37,375

2.10

Dairy Cattle/Milk Product

43,369

2.43

Fuel/Gas Stations

48,528

2.72

Government Support

22,656

1.27

Mobile Home Park

20,221

1.13

Wineries

22,448

1.26

Camps

23,635

1.33

Resorts

35,589

2.00