Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. Outstanding loans are summarized below, in thousands: June 30, December 31, 2023 2022 Commercial $ 74,958 $ 76,680 Agricultural 126,841 122,873 Real estate – residential 14,878 15,324 Real estate – commercial 517,289 516,107 Real estate – construction and land development 56,331 43,420 Equity lines of credit 35,877 35,891 Auto 103,050 96,750 Other 5,990 4,904 Total loans 935,214 911,949 Deferred loan costs, net 2,837 2,736 Loans, amortized cost basis 938,051 914,685 Allowance for credit losses (13,385 ) (10,717 ) Total net loans $ 924,666 $ 903,968 To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators including loan grade and borrower repayment performance have been statistically correlated with historical credit losses and various econometrics, including California unemployment rates, California Housing Prices, California gross domestic product, California Retail Trade Earnings and Wall Street Journal Prime Rate. Model forecasts may January 1, 2023, 326, June 30, 2023, four June 30, 2023 In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. The Company's policy is that loans designated as nonaccrual no June 30, 2023 The implementation of CECL also impacted the Company's ACL on unfunded loan commitments, as the ACL now represents expected credit losses over the contractual life of commitments not Changes in the allowance for credit losses, in thousands, were as follows: June 30, December 31, 2023 2022 Balance, beginning of period $ 10,717 $ 10,352 Cumulative change from adoption of ASU 2016-13 529 - Provision charged to operations - loans 2,550 1,300 Losses charged to allowance (738 ) (1,461 ) Recoveries 327 526 Balance, end of period $ 13,385 $ 10,717 Salaries and employee benefits totaling $509,000 and $875,000 have been deferred as loan origination costs during the three June 30, 2023 2022, six June 30, 2023 2022, The Company assigns a risk rating to all loans and periodically, but not $100,000 The risk ratings can be grouped into three Special Mention may Substandard not not Doubtful Loans not For other loans, which are primarily consumer loans and automobile loans the Company evaluates credit quality based on the aging status of the loan and by payment activity. The following table shows the loan portfolio allocated by management's internal risk ratings or payment activity at the dates indicated, in thousands: Term Loans - Amortized Cost Basis by Origination Year and Risk Grades - As of June 30, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Book Amortized Cost Basis Revolving Loans Converted to Term Amortized Cost Basis Total - Amortized Cost Basis Commercial Pass $ 6,850 $ 23,292 $ 11,515 $ 4,931 $ 5,015 $ 6,003 $ 15,381 $ - $ 72,987 Special Mention - 49 421 316 - 21 1,572 - 2,379 Substandard - - 197 47 - - - - 244 Total Commercial loans $ 6,850 $ 23,341 $ 12,133 $ 5,294 $ 5,015 $ 6,024 $ 16,953 $ - $ 75,610 Current period gross charge-offs $ - $ - $ 40 $ - $ - $ 9 $ - $ - $ 49 Agricultural Pass $ 3,335 $ 19,008 $ 13,624 $ 15,572 $ 11,874 $ 21,804 $ 20,241 $ - $ 105,458 Special Mention 1,265 3,353 97 1,034 - 789 608 - 7,146 Substandard 105 5,013 4,980 - 1,251 986 2,259 - 14,594 Total Agricultural $ 4,705 $ 27,374 $ 18,701 $ 16,606 $ 13,125 $ 23,579 $ 23,108 $ - $ 127,198 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Real Estate - Residential Pass $ 1,396 $ 1,073 $ 2,282 $ 2,490 $ 572 $ 6,146 $ 512 $ - $ 14,471 Special Mention - - - - 63 - - - 63 Substandard - - - - - 380 - - 380 Total Real Estate - Residential $ 1,396 $ 1,073 $ 2,282 $ 2,490 $ 635 $ 6,526 $ 512 $ - $ 14,914 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Real Estate -Commercial Pass $ 30,230 $ 109,983 $ 83,709 $ 91,131 $ 40,914 $ 147,147 $ 7,932 $ - $ 511,046 Special Mention - - - - 367 2,722 - - 3,089 Substandard 146 13 - - - 2,756 - - 2,915 Total Real Estate -Commercial $ 30,376 $ 109,996 $ 83,709 $ 91,131 $ 41,281 $ 152,625 $ 7,932 $ - $ 517,050 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Real Estate -Construction Pass $ 6,906 $ 29,460 $ 15,650 $ 2,628 $ 626 $ 590 $ - $ - $ 55,860 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total Real Estate -Construction $ 6,906 $ 29,460 $ 15,650 $ 2,628 $ 626 $ 590 $ - $ - $ 55,860 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Equity LOC Pass $ - $ - $ - $ - $ - $ 35,028 $ 943 $ 35,971 Substandard - - - - - 161 566 727 Total Equity LOC $ - $ - $ - $ - $ - $ - $ 35,189 $ 1,509 $ 36,698 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Pass $ 48,717 $ 182,816 $ 126,780 $ 116,752 $ 59,001 $ 181,690 $ 79,094 $ 943 $ 795,793 Special Mention 1,265 3,402 518 1,350 430 3,532 2,180 - 12,677 Substandard 251 5,026 5,177 47 1,251 4,122 2,420 566 18,860 Total $ 50,233 $ 191,244 $ 132,475 $ 118,149 $ 60,682 $ 189,344 $ 83,694 $ 1,509 $ 827,330 Current period gross charge-offs $ - $ - $ 40 $ - $ - $ 9 $ - $ - $ 49 Auto Performing $ 21,684 $ 36,976 $ 19,647 $ 10,816 $ 8,802 $ 5,973 $ - $ - $ 103,898 Non-performing 133 100 143 213 169 40 - - 798 Total Auto $ 21,817 $ 37,076 $ 19,790 $ 11,029 $ 8,971 $ 6,013 $ - $ - $ 104,696 Current period gross charge-offs $ - $ 99 $ 257 $ 83 $ 102 $ 63 $ - $ - $ 604 Other Performing $ 115 $ 2,160 $ 1,002 $ 401 $ 128 $ 1,029 $ 175 $ - $ 5,010 Non-performing 1,005 - 10 - - - - - 1,015 Total Other $ 1,120 $ 2,160 $ 1,012 $ 401 $ 128 $ 1,029 $ 175 $ - $ 6,025 Current period gross charge-offs $ - $ 51 $ 17 $ 4 $ 9 $ 3 $ 1 $ - $ 85 Total Performing $ 21,799 $ 39,136 $ 20,649 $ 11,217 $ 8,930 $ 7,002 $ 175 $ - $ 108,908 Non-performing 1,138 100 153 213 169 40 - - 1,813 Total $ 22,937 $ 39,236 $ 20,802 $ 11,430 $ 9,099 $ 7,042 $ 175 $ - $ 110,721 Current period gross charge-offs $ - $ 150 $ 314 $ 87 $ 111 $ 75 $ 1 $ - $ 738 December 31, 2022 Commercial Credit Exposure Credit Risk Profile by Internally Assigned Grade Grade: Commercial Agricultural Real Estate-Residential Real Estate-Commercial Real Estate-Construction Equity LOC Total Pass $ 68,577 $ 111,276 $ 14,932 $ 510,504 $ 43,337 $ 35,475 $ 784,101 Special Mention 8,047 10,651 161 3,934 - - 22,793 Substandard 56 946 231 1,669 83 416 3,401 Doubtful - - - - - - - Total $ 76,680 $ 122,873 $ 15,324 $ 516,107 $ 43,420 $ 35,891 $ 810,295 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity December 31, 2022 Auto Other Total Grade: Performing $ 96,298 $ 4,904 $ 101,202 Non-performing 452 - 452 Total $ 96,750 $ 4,904 $ 101,654 The following table show information related to impaired loans at December 31, 2022, Unpaid Average Interest Recorded Principal Related Recorded Income As of December 31, 2022: Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ - $ - $ - $ - $ - Agricultural 232 232 - 235 17 Real estate – residential 509 541 - 514 29 Real estate – commercial - - - - - Real estate – construction & land 94 94 - 98 6 Equity Lines of Credit 244 301 - 254 - Auto - - - - - Other - - - - - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Agricultural - - - - - Real estate – residential 169 169 20 170 7 Real estate – commercial - - - - - Real estate – construction & land - - - - - Equity Lines of Credit - - - - - Auto - - - - - Other - - - - - Total: Commercial $ - $ - $ - $ - $ - Agricultural 232 232 - 235 17 Real estate – residential 678 710 20 684 36 Real estate – commercial - - - - - Real estate – construction & land 94 94 - 98 6 Equity Lines of Credit 244 301 - 254 - Auto - - - - - Other - - - - - Total $ 1,248 $ 1,337 $ 20 $ 1,271 $ 59 The following table shows the ending balance of nonaccrual loans by loan category as of the date indicated: Non Performing Loans June 30, 2023 December 31, 2022 (in thousands) Nonaccrual with no allowance for credit losses Total nonaccrual Past due 90 days or more and still accruing Nonaccrual with no allowance for credit losses Total nonaccrual Past due 90 days or more and still accruing Commercial $ - $ 58 $ - $ - $ - $ - Agricultural - 847 5,032 - - - Real estate – residential 199 199 - 211 211 - Real estate – commercial 859 859 - 9 9 - Real estate – construction & land development - - - 83 83 - Equity lines of credit 727 727 - 417 417 - Auto 798 798 - 452 452 - Other 10 1,015 - - - - Total Gross Loans $ 2,593 $ 4,503 $ 5,032 $ 1,172 $ 1,172 $ - The Company places loans 90 not 90 90 At June 30, 2023, three No six June 30, 2023 December 31, 2022. The following table presents the amortized cost basis of loans on June 30, 2023, six June 30, 2023, Term Extension (in thousands) Amortized Cost Basis Total % Class of Financing Receivable Commercial 1,499 1.98 % Agricultural 5,246 4.12 % Real Estate - Residential 0.00 % Real Estate - Commercial 0.00 % Real Estate - Construction 0.00 % Equity LOC 0.00 % Auto 0.00 % Other 0.00 % Total $ 6,745 0.72 % The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of June 30, 2023: (in thousands) Weighted-Average Term Extension (in months) Commercial 6 Agricultural 10 Real Estate - Residential Real Estate - Commercial Real Estate - Construction Equity LOC Auto Other Total 9.1 There were no loans with payment defaults by borrowers experiencing financial difficulty during the quarter ended June 30, 2023, twelve The following tables show the allocation of the allowance for credit losses at the dates indicated, in thousands: Six Months Ended June 30, 2023: Commercial Agricultural Real Estate-Residential Real Estate-Commercial Real Estate-Construction Equity LOC Auto Other Total Allowance for credit losses Beginning balance $ 892 $ 1,086 $ 138 $ 4,980 $ 1,500 $ 687 $ 1,289 $ 145 $ 10,717 Impact of CECL Adoption 354 148 2 1,488 (951 ) (421 ) 9 (100 ) 529 Charge-offs (49 ) - - - - - (604 ) (85 ) (738 ) Recoveries 12 - 2 1 - - 305 7 327 Provision 338 244 27 393 317 135 567 529 2,550 Ending balance $ 1,547 $ 1,478 $ 169 $ 6,862 $ 866 $ 401 $ 1,566 $ 496 $ 13,385 Three Months Ended June 30, 2023: Allowance for credit losses Beginning balance $ 1,475 $ 1,307 $ 162 $ 6,740 $ 763 $ 330 $ 1,504 $ 49 $ 12,330 Charge-offs (49 ) - - - - - (311 ) (70 ) (430 ) Recoveries 6 - 1 - - 174 4 185 Provision 115 171 6 122 103 71 199 513 1,300 Ending balance $ 1,547 $ 1,478 $ 169 $ 6,862 $ 866 $ 401 $ 1,566 $ 496 $ 13,385 Six Months Ended June 30, 2022: Allowance for credit losses Beginning balance $ 1,074 $ 791 $ 168 $ 4,549 $ 1,325 $ 426 $ 1,911 $ 108 $ 10,352 Charge-offs - - - (19 ) - - (419 ) (31 ) (469 ) Recoveries 17 - 2 - - - 311 6 336 Provision (189 ) 303 (31 ) (135 ) 434 167 97 54 700 Ending balance $ 902 $ 1,094 $ 139 $ 4,395 $ 1,759 $ 593 $ 1,900 $ 137 $ 10,919 Three Months Ended June 30, 2022: Allowance for credit losses Beginning balance $ 893 $ 947 $ 132 $ 4,322 $ 1,545 $ 554 $ 1,880 $ 129 $ 10,402 Charge-offs - - - - - - (85 ) (11 ) (96 ) Recoveries 11 - 1 1 - - 197 3 213 Provision (2 ) 147 6 72 214 39 (92 ) 16 400 Ending balance $ 902 $ 1,094 $ 139 $ 4,395 $ 1,759 $ 593 $ 1,900 $ 137 $ 10,919 June 30, 2022 Allowance for credit losses Ending balance: individually evaluated for impairment $ 16 $ - $ 23 $ - $ - $ - $ - $ - $ 39 Ending balance: collectively evaluated for impairment 886 1,094 116 4,395 1,759 593 1,900 137 10,880 Ending balance $ 902 $ 1,094 $ 139 $ 4,395 $ 1,759 $ 593 $ 1,900 $ 137 $ 10,919 Loans Ending balance: individually evaluated for impairment $ 19 $ 235 $ 691 $ 97 $ 98 $ 254 $ - $ - $ 1,394 Ending balance: collectively evaluated for impairment 84,359 125,572 15,176 447,883 60,793 34,491 87,907 4,577 860,758 Ending balance $ 84,378 $ 125,807 $ 15,867 $ 447,980 $ 60,891 $ 34,745 $ 87,907 $ 4,577 $ 862,152 Year Ended December 31, 2022: Allowance for credit losses Beginning balance $ 1,074 $ 791 $ 168 $ 4,549 $ 1,325 $ 426 $ 1,911 $ 108 $ 10,352 Charge-offs (207 ) - - (19 ) - - (1,195 ) (40 ) (1,461 ) Recoveries 27 - 3 2 - - 482 12 526 Provision (2 ) 295 (33 ) 448 175 261 91 65 1,300 Ending balance $ 892 $ 1,086 $ 138 $ 4,980 $ 1,500 $ 687 $ 1,289 $ 145 $ 10,717 Allowance for credit losses Ending balance: individually evaluated for impairment $ - $ - $ 20 $ - $ - $ - $ - $ - $ 20 Ending balance: collectively evaluated for impairment 892 1,086 118 4,980 1,500 687 1,289 145 10,697 Ending balance $ 892 $ 1,086 $ 138 $ 4,980 $ 1,500 $ 687 $ 1,289 $ 145 $ 10,717 Loans Ending balance: individually evaluated for impairment $ - $ 232 $ 678 $ - $ 94 $ 244 $ - $ - $ 1,248 Ending balance: collectively evaluated for impairment 76,680 122,641 14,646 516,107 43,326 35,647 96,750 4,904 910,701 Ending balance $ 76,680 $ 122,873 $ 15,324 $ 516,107 $ 43,420 $ 35,891 $ 96,750 $ 4,904 $ 911,949 The following table shows an aging analysis of the loan portfolio by the time past due, in thousands: Total June 30, 2023 90 Days Past Due 30-59 Days 60-89 Days and Still and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Total Commercial $ 270 $ 618 $ - $ 58 $ 946 $ 74,664 $ 75,610 Agricultural 349 - 5,032 847 6,228 120,970 127,198 Real estate – residential 160 424 - 199 783 14,131 14,914 Real estate – commercial 300 275 - 859 1,434 515,616 517,050 Real estate - construction & land 188 - - - 188 55,672 55,860 Equity Lines of Credit 987 - - 727 1,714 34,984 36,698 Auto 1,442 390 0 798 2,630 102,066 104,696 Other 0 8 0 1,015 1,023 5,002 6,025 Total $ 3,696 $ 1,715 $ 5,032 $ 4,503 $ 14,946 $ 923,105 $ 938,051 Total December 31, 2022 90 Days Past Due 30-89 Days 60-89 Days and Still and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Total Commercial $ 750 $ 195 $ - $ - $ 945 $ 75,735 $ 76,680 Agricultural 877 - - - 877 121,996 122,873 Real estate – residential 437 - - 211 648 14,676 15,324 Real estate - commercial 3,255 - - 9 3,264 512,843 516,107 Real estate - construction & land - - - 83 83 43,337 43,420 Equity Lines of Credit 665 53 - 417 1,135 34,756 35,891 Auto 1,862 693 - 452 3,007 93,743 96,750 Other 1 14 - - 15 4,889 4,904 Total $ 7,847 $ 955 $ - $ 1,172 $ 9,974 $ 901,975 $ 911,949 The following tables present the amortized cost basis of collateral dependent loans by class of loans at June 30, 2023 June 30, 2023 Commercial -1st SFR-1st SFR-2nd SFR-3rd Auto Auto Equipment Crops Deed Deed Deed Deed New Used Total Commercial $ 58 $ - $ - $ - $ - $ - $ - $ 58 Agricultural - 847 - - - - 847 Real estate – residential - - 199 - - - 199 Real estate – commercial - - 328 341 44 146 - 859 Real estate - construction & land - - - - - - - Equity Lines of Credit - - 400 327 - - 727 Auto - - - - 676 122 798 Other - - - - - 9 9 Total $ 58 $ 847 $ 328 $ 940 $ 371 $ 146 $ 676 $ 131 $ 3,497 There were no new troubled debt restructurings during the twelve December 31, 2022. no twelve twelve December 31, 2022. |