v3.26.1
Loans
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans

 

(4)Loans:

 

The following table presents total loans at March 31, 2026 and December 31, 2025 by portfolio segment and class of loan:

   

  

March 31, 2026

   December 31, 2025 
Commercial:          
Commercial and industrial  $74,942   $71,872 
Agricultural   72,118    78,695 
Real estate:          
Commercial   541,132    549,247 
Consumer   397,912    398,022 
Agricultural   169,575    169,779 
Construction and land   30,883    39,916 
Consumer:          
Installment   4,475    4,470 
Vehicle   1,738    1,928 
Credit cards   1,374    1,365 
Total loans   1,294,149    1,315,294 
Allowance for credit losses   (14,893)   (14,992)
Loans, net  $1,279,256   $1,300,302 

 

Detailed analysis of the allowance for credit losses by portfolio segment for the three months ended March 31, 2026 follows:

   

Three Months Ended March 31, 2026

  Commercial  

Real

Estate

   Consumer  

Total

 
                 
Balance at beginning of year  $1,037   $13,819   $136   $14,992 
Credit loss expense (benefit)   11    (106)   (1)   (96)
Recoveries on loans previously charged-off   0    1    7    8 
Less loans charged-off   0    0    (11)   (11)
                     
Balance at March 31, 2026  $1,048   $13,714   $131   $14,893 

 

Detailed analysis of the allowance for credit losses by portfolio segment for the three months ended March 31, 2025 follows:

 

Three Months Ended March 31, 2025

 

Commercial

  

Real

Estate

  

Consumer

  

Total

 
                 
Balance at beginning of year  $1,101   $13,201   $142   $14,444 
Credit loss expense (benefit)   (47)   284    (6)   231 
Recoveries on loans previously charged-off   6    10    13    29 
Less loans charged-off   (3)   (173)   (24)   (200)
                     
Balance at March 31, 2025  $1,057   $13,322   $125   $14,504 

 

 

(4)Loans (continued):

 

Detailed analysis of the allowance for unfunded commitments for the three months ended March 31, 2026 follows:

 

 

Three Months Ended March 31, 2026  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $84   $831   $2   $917 
Credit loss expense (benefit)   3    (212)   0    (209)
                     
Balance at March 31, 2026  $87   $619   $2   $708 

 

Detailed analysis of the allowance for unfunded commitments for the three months ended March 31, 2025 follows:

 

Three Months Ended March 31, 2025

  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $96   $889   $2   $987 
Credit loss expense (benefit)   (10)   280    0    270 
                     
Balance at March 31, 2025  $86   $1,169   $2   $1,257 

 

The Bank has no commitments to loan additional funds to the borrowers of collateral dependent or non-accrual loans.

 

Certain purchased loans as later discussed in Note 4 are not considered impaired or non-accrual loans if the expected cash flows as of March 31, 2026 and December 31, 2025 exceed the carrying amount and accretion income is being recorded.

 

 

(4)Loans (continued):

 

The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses. The Company generally monitors credit quality indicators for all non-consumer loans using the following internally prepared ratings:

 

●‘Pass’ ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable.
●‘Watch’ loans are credits that are fundamentally sound but warrant close attention by management. Borrowers in this category may have acceptable asset quality but may face challenges due to market conditions, economic conditions, management changes, or other forces that could adversely affect operations. Factors contributing to adverse conditions are expected to be temporary.
●‘Special Mention’ ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable.
●‘Substandard’ ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable.
●‘Doubtful’ ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely.

 

As of March 31, 2026 and December 31, 2025, accrued interest on loans of $8,202 and $7,648, respectively, were excluded from CECL evaluation. Accrued interest on loans is recorded within accrued interest receivable on the consolidated balance sheet.

 

 

(4)Loans (continued):

 

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of March 31, 2026.

   

March 31, 

Year 1

  

Year 2

  

Year 3

  

Year 4

  

Year 5

  

Prior

   Revolving Loans  

Total

 
March 31, 

2026

  

2025

  

2024

  

2023

  

2022

  

Prior

   Revolving Loans  

Total

 
Commercial:                                        
Commercial and industrial                                        
Pass  $5,911   $17,689   $8,944   $4,148   $4,553   $8,840   $21,684   $71,769 
Watch   114    191    158    189    185    73    1,193    2,103 
Special Mention   0    0    48    235    12    3    547    845 
Substandard   0    0    0    21    6    198    0    225 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial and industrial  $6,025   $17,880   $9,150   $4,593   $4,756   $9,114   $23,424   $74,942 
Agricultural:                                        
Pass  $2,327   $4,202   $1,432   $1,567   $3,000   $2,726   $52,332   $67,586 
Watch   0    0    108    0    59    462    1,995    2,624 
Special Mention   0    130    124    744    0    69    433    1,500 
Substandard   0    9    110    220    1    20    48    408 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $2,327   $4,341   $1,774   $2,531   $3,060   $3,277   $54,808   $72,118 
Real Estate:                                        
Commercial                                        
Pass  $9,070   $80,456   $46,726   $49,755   $104,999   $168,726   $8,295   $468,027 
Watch   0    632    6,166    4,980    18,083    23,773    7,585    61,219 
Special Mention   0    0    2,267    108    1,119    3,973    0    7,467 
Substandard   0    0    246    1,213    0    2,960    0    4,419 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial  $9,070   $81,088   $55,405   $56,056   $124,201   $199,432   $15,880   $541,132 
Consumer                                        
Pass  $15,648   $58,020   $34,830   $49,214   $73,337   $108,233   $28,913   $368,195 
Watch   272    466    9,508    3,552    2,059    11,311    570    27,738 
Special Mention   0    0    0    94    63    749    266    1,172 
Substandard   0    0    100    0    161    546    0    807 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $15,920   $58,486   $44,438   $52,860   $75,620   $120,839   $29,749   $397,912 

 

 

(4)Loans (continued):

 

March 31,  2026   2025   2024   2023   2022   Prior   Revolving Loans   Total 
(Real Estate Continued):                                        
Agricultural                                        
Pass  $5,952   $14,016   $10,939   $13,238   $28,970   $72,505   $16,908   $162,528 
Watch   0    123    186    1,377    0    1,846    0    3,532 
Special Mention   368    504    0    0    0    1,258    250    2,380 
Substandard   0    0    0    0    0    1,135    0    1,135 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $6,320   $14,643   $11,125   $14,615   $28,970   $76,744   $17,158   $169,575 
Construction and land:                                        
Pass  $109   $22,064   $2,001   $1,949   $664   $3,655   $199   $30,641 
Watch   0    0    0    0    242    0    0    242 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Construction and land  $109   $22,064   $2,001   $1,949   $906   $3,655   $199   $30,883 
Consumer:                                        
Installment                                        
Pass  $825   $1,604   $470   $452   $332   $665   $121   $4,469 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    6    0    0    6 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $825   $1,604   $470   $452   $338   $665   $121   $4,475 
Vehicle                                        
Pass  $189   $502   $570   $262   $192   $23   $0   $1,738 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Vehicle  $189   $502   $570   $262   $192   $23   $0   $1,738 
Credit cards                                        
Pass  $1,374   $0   $0   $0   $0   $0   $0   $1,374 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Credit Cards  $1,374   $0   $0   $0   $0   $0   $0   $1,374 
Total Loans                                        
Pass  $41,405   $198,553   $105,912   $120,585   $216,047   $365,373   $128,452   $1,176,327 
Watch   386    1,412    16,126    10,098    20,628    37,465    11,343    97,458 
Special Mention   368    634    2,439    1,181    1,194    6,052    1,496    13,364 
Substandard   0    9    456    1,454    174    4,859    48    7,000 
Doubtful   0    0    0    0    0    0    0    0 
Total  $42,159   $200,608   $124,933   $133,318   $238,043   $413,749   $141,339   $1,294,149 

 

 

(4)Loans (continued):

 

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of December 31, 2025:

 

December 31,  2025   2024   2023   2022   2021   Prior   Revolving Loans   Total 
Commercial:                                        
Commercial and industrial                                        
Pass  $20,312   $9,686   $4,745   $4,996   $1,318   $8,336   $19,746   $69,139 
Watch   205    178    210    0    0    0    942    1,535 
Special Mention   0    126    258    14    5    0    547    950 
Substandard   0    0    22    6    195    25    0    248 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial and industrial  $20,517   $9,990   $5,235   $5,016   $1,518   $8,361   $21,235   $71,872 
Agricultural:                                        
Pass  $4,621   $1,578   $1,687   $4,066   $3,105   $216   $57,806   $73,079 
Watch   9    144    222    67    129    376    2,126    3,073 
Special Mention   130    124    750    0    52    0    1,183    2,239 
Substandard   0    110    107    1    0    0    86    304 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $4,760   $1,956   $2,766   $4,134   $3,286   $592   $61,201   $78,695 
Real Estate:                                        
Commercial                                        
Pass  $81,399   $49,772   $52,788   $109,941   $59,516   $116,804   $8,107   $478,327 
Watch   647    5,862    5,021    15,297    6,324    18,764    6,891    58,806 
Special Mention   0    2,294    111    1,127    2,082    1,943    0    7,557 
Substandard   0    246    1,213    0    2,952    146    0    4,557 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial  $82,046   $58,174   $59,133   $126,365   $70,874   $137,657   $14,998   $549,247 
Consumer                                        
Pass  $61,513   $40,060   $51,021   $75,474   $44,368   $71,370   $29,661   $373,467 
Watch   99    8,743    3,626    2,071    3,458    3,883    557    22,437 
Special Mention   0    0    95    63    68    696    269    1,191 
Substandard   0    100    0    325    91    393    18    927 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $61,612   $48,903   $54,742   $77,933   $47,985   $76,342   $30,505   $398,022 

 

 

(4)Loans (continued):

 

December 31,  2025   2024   2023   2022   2021   Prior   Revolving Loans   Total 
Real Estate Continued):                                        
Agricultural                                        
Pass  $14,104   $11,333   $12,862   $28,975   $24,335   $48,689   $20,087   $160,385 
Watch   124    199    1,389    1,057    294    2,543    466    6,072 
Special Mention   507    0    0    0    0    1,360    320    2,187 
Substandard   0    0    0    0    0    1,135    0    1,135 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $14,735   $11,532   $14,251   $30,032   $24,629   $53,727   $20,873   $169,779 
Construction and land:                                        
Pass  $20,462   $12,330   $1,949   $673   $525   $3,322   $412   $39,673 
Watch   0    0    0    243    0    0    0    243 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Construction and land  $20,462   $12,330   $1,949   $916   $525   $3,322   $412   $39,916 
Consumer:                                        
Installment                                        
Pass  $2,206   $628   $494   $352   $283   $457   $37   $4,457 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    13    0    0    0    13 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $2,206   $628   $494   $365   $283   $457   $37   $4,470 
Vehicle                                        
Pass  $613   $656   $357   $264   $36   $2   $0   $1,928 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Vehicle  $613   $656   $357   $264   $36   $2   $0   $1,928 
Credit cards                                        
Pass  $1,365   $0   $0   $0   $0   $0   $0   $1,365 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Credit Cards  $1,365   $0   $0   $0   $0   $0   $0   $1,365 
Total Loans                                        
Pass  $206,595   $126,043   $125,903   $224,741   $133,486   $249,196   $135,856   $1,201,820 
Watch   1,084    15,126    10,468    18,735    10,205    25,566    10,982    92,166 
Special Mention   637    2,544    1,214    1,204    2,207    3,999    2,319    14,124 
Substandard   0    456    1,342    345    3,238    1,699    104    7,184 
Doubtful   0    0    0    0    0    0    0    0 
Total  $208,316   $144,169   $138,927   $245,025   $149,136   $280,460   $149,261   $1,315,294 

 

 

(4)Loans (continued):

 

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of March 31, 2026:

  

2026  Non-accrual   Non-accrual With No ACL   Loans Past Due Over 89 Days and Still Accruing 
2026  Non-accrual   Non-accrual With No ACL   Loans Past Due Over 89 Days and Still Accruing 
             
Commercial:               
Commercial  $186   $0   $51 
Agricultural   9    9    324 
Real estate:               
Commercial real estate   4,092    28    627 
Agricultural real estate   0    0    600 
Consumer real estate   69    68    1,187 
Consumer:               
Installment   0    0    0 
                
Total  $4,356   $105   $2,789 

 

The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of December 31, 2025:

 

2025 

 

Non-accrual

  

Non-accrual With No ACL

   Loans Past Due Over 89 Days and Still Accruing 
             
Commercial:               
Commercial  $195   $0   $31 
Agricultural   0    0    302 
Real estate:               
Commercial real estate   4,095    3    246 
Agricultural real estate   0    0    0 
Consumer real estate   211    214    573 
Consumer:               
Installment   0    0    6 
                
Total  $4,501   $217   $1,158 

 

 

(4)Loans (continued):

 

Loan aging information by class of loan at March 31, 2026 and December 31, 2025:

   

March 31, 2026 

Loans Past Due 30-59 Days

  

Loans Past Due 60-89 Days

  

Loans Past Due 90+ Days

  

Total Past Due

 
March 31, 2026 

Loans Past Due

30-59 Days

  

Loans Past Due

60-89 Days

  

Loans Past Due

90+ Days

  

Total

Past

Due

 
                 
Commercial:                    
Commercial  $476   $336   $51   $863 
Agricultural   284    9    324    617 
Real estate:                    
Commercial real estate   308    261    4,720    5,289 
Agricultural real estate   0    897    600    1,497 
Consumer real estate   2,371    0    1,187    3,558 
Consumer:                    
Installment   21    1    0    22 
                     
Totals  $3,460   $1,504   $6,882   $11,846 

 

December 31, 2025 

Loans Past Due

30-59 Days

  

Loans Past Due

60-89 Days

  

Loans Past Due

90+ Days

  

Total

Past

Due

 
                 
Commercial:                    
Commercial  $0   $25   $31   $56 
Agricultural   37    0    303    340 
Real estate:                    
Commercial real estate   2,317    382    4,341    7,040 
Agricultural real estate   0    0    0    0 
Consumer real estate   2,513    825    572    3,910 
Consumer:                    
Installment   11    15    6    32 
                     
Totals  $4,878   $1,247   $5,253   $11,378 

 

 

(4)Loans (continued):

 

The following table represents collateral dependent loans. A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2026:

   

2026    

      Total 
2026  Commercial  

Real

Estate

   Vehicle   Total 
                 
Commercial and industrial  $238   $0   $0   $238 
Agriculture   408    0    0    408 
Commercial real estate   0    4,419    0    4,419 
Agricultural real estate   0    1,135    0    1,135 
Consumer real estate   0    807    0    807 
Consumer other   0    0    6    6 
Consumer vehicle   0    0    0    0 
                     
Totals  $646   $6,361   $6   $7,013 

 

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2025:

 

2025    

     

Total

 
2025  Commercial  

Real

Estate

   Vehicle  

Total

 
                 
Commercial and industrial  $261   $0   $0   $261 
Agricultural   304    0    0    304 
Commercial real estate   0    4,557    0    4,557 
Agricultural real estate   0    1,135    0    1,135 
Consumer real estate   100    832    0    932 
Consumer other   0    0    13    13 
Consumer vehicle   0    0    0    0 
                     
Totals  $665   $6,524   $13   $7,202 

 

The Company had no loans modified to borrowers experiencing financial difficulty as of March 31, 2026 and December 31, 2025.