Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. Outstanding loans are summarized below, in thousands: September 30, December 31, 2023 2022 Commercial $ 76,719 $ 76,680 Agricultural 131,242 122,873 Real estate – residential 12,457 15,324 Real estate – commercial 530,023 516,107 Real estate – construction and land development 58,901 43,420 Equity lines of credit 37,650 35,891 Auto 105,584 96,750 Other 6,056 4,904 Total loans 958,632 911,949 Deferred loan costs, net 3,034 2,736 Loans, amortized cost basis 961,666 914,685 Allowance for credit losses (12,947 ) (10,717 ) Total net loans $ 948,719 $ 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, September 30, 2023, four September 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 September 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: September 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 2,425 1,300 Losses charged to allowance (1,252 ) (1,461 ) Recoveries 528 526 Balance, end of period $ 12,947 $ 10,717 Salaries and employee benefits totaling $694,000 and $769,000 have been deferred as loan origination costs during the three September 30, 2023 2022, nine September 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 September 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 $ 12,835 $ 21,375 $ 10,976 $ 3,847 $ 4,630 $ 5,553 $ 15,530 $ - $ 74,746 Special Mention - 46 412 303 - 44 1,574 - 2,379 Substandard - - 217 61 - 12 - - 290 Total Commercial loans $ 12,835 $ 21,421 $ 11,605 $ 4,211 $ 4,630 $ 5,609 $ 17,104 $ - $ 77,415 Current period gross charge-offs $ - $ 34 $ 39 $ - $ - $ 10 $ 25 $ - $ 108 Agricultural Pass $ 10,028 $ 18,230 $ 13,390 $ 15,383 $ 11,692 $ 21,360 $ 20,034 $ - $ 110,117 Special Mention 1,961 2,753 97 1,029 16 860 663 - 7,379 Substandard 6,129 5,012 1,933 - 752 248 - - 14,074 Total Agricultural $ 18,118 $ 25,995 $ 15,420 $ 16,412 $ 12,460 $ 22,468 $ 20,697 $ - $ 131,570 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Real Estate - Residential Pass $ 1,132 $ - $ 2,161 $ 2,469 $ 528 $ 5,247 $ 511 $ - $ 12,048 Special Mention - - - - 62 - - - 62 Substandard - - - - - 376 - - 376 Total Real Estate - Residential $ 1,132 $ - $ 2,161 $ 2,469 $ 590 $ 5,623 $ 511 $ - $ 12,486 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Real Estate -Commercial Pass $ 46,743 $ 118,246 $ 80,737 $ 86,660 $ 40,570 $ 143,429 $ 6,700 $ - $ 523,085 Special Mention - - - 558 365 2,983 - - 3,906 Substandard 143 13 - - - 2,728 - - 2,884 Total Real Estate -Commercial $ 46,886 $ 118,259 $ 80,737 $ 87,218 $ 40,935 $ 149,140 $ 6,700 $ - $ 529,875 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Real Estate -Construction Pass $ 11,462 $ 27,338 $ 16,103 $ 1,685 $ 623 $ 484 $ 767 $ - $ 58,462 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total Real Estate -Construction $ 11,462 $ 27,338 $ 16,103 $ 1,685 $ 623 $ 484 $ 767 $ - $ 58,462 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Equity LOC Pass $ - $ - $ - $ - $ - $ 35,123 $ 2,910 $ 38,033 Substandard - - - - - 159 293 452 Total Equity LOC $ - $ - $ - $ - $ - $ - $ 35,282 $ 3,203 $ 38,485 Current period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Pass $ 82,200 $ 185,189 $ 123,367 $ 110,044 $ 58,043 $ 176,073 $ 78,665 $ 2,910 $ 816,491 Special Mention 1,961 2,799 509 1,890 443 3,887 2,237 - 13,726 Substandard 6,272 5,025 2,150 61 752 3,364 159 293 18,076 Total $ 90,433 $ 193,013 $ 126,026 $ 111,995 $ 59,238 $ 183,324 $ 81,061 $ 3,203 $ 848,293 Current period gross charge-offs $ - $ 34 $ 39 $ - $ - $ 10 $ 25 $ - $ 108 Auto Performing $ 32,199 $ 34,426 $ 17,823 $ 9,648 $ 7,595 $ 4,668 $ - $ - $ 106,359 Non-performing - 227 241 180 220 52 - - 920 Total Auto $ 32,199 $ 34,653 $ 18,064 $ 9,828 $ 7,815 $ 4,720 $ - $ - $ 107,279 Current period gross charge-offs $ - $ 127 $ 388 $ 237 $ 179 $ 111 $ - $ - $ 1,042 Other Performing $ 2,184 $ 1,573 $ 812 $ 307 $ 79 $ 18 $ 155 $ - $ 5,128 Non-performing 960 6 - - - - - - 966 Total Other $ 3,144 $ 1,579 $ 812 $ 307 $ 79 $ 18 $ 155 $ - $ 6,094 Current period gross charge-offs $ - $ 51 $ 34 $ 4 $ 9 $ 3 $ 1 $ - $ 102 Total Performing $ 34,383 $ 35,999 $ 18,635 $ 9,955 $ 7,674 $ 4,686 $ 155 $ - $ 111,487 Non-performing 960 233 241 180 220 52 - - 1,886 Total $ 35,343 $ 36,232 $ 18,876 $ 10,135 $ 7,894 $ 4,738 $ 155 $ - $ 113,373 Current period gross charge-offs $ - $ 178 $ 422 $ 241 $ 188 $ 114 $ 1 $ - $ 1,144 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 shows 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 September 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 $ 48 $ 105 $ - $ - $ - $ - Agricultural 847 847 - - - - Real estate – residential 195 195 - 211 211 - Real estate – commercial 844 844 - 9 9 - Real estate – construction & land development - - - 83 83 - Equity lines of credit 452 452 - 417 417 - Auto 920 920 - 452 452 - Other 966 966 - - - - Total Gross Loans $ 4,272 $ 4,329 $ - $ 1,172 $ 1,172 $ - The Company places loans 90 not 90 90 At September 30, 2023, one No nine September 30, 2023 December 31, 2022. The following table presents the amortized cost basis of loans on September 30, 2023, nine September 30, 2023, Term Extension (in thousands) Amortized Cost Basis Total Class of Financing Receivable Commercial 1,489 1.92 % Agricultural 4,367 3.32 % 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 $ 5,856 0.62 % The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of September 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 September 30, 2023, twelve The following tables show the allocation of the allowance for credit losses at the dates indicated, in thousands: Nine Months Ended September 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 (108 ) - - - - - (1,042 ) (102 ) (1,252 ) Recoveries 17 - 2 2 - - 458 49 528 Provision 461 (73 ) 29 597 311 143 900 57 2,425 Ending balance $ 1,616 $ 1,161 $ 171 $ 7,067 $ 860 $ 409 $ 1,614 $ 49 $ 12,947 Three Months Ended September 30, 2023: Allowance for credit losses Beginning balance $ 1,547 $ 1,478 $ 169 $ 6,862 $ 866 $ 401 $ 1,566 $ 496 $ 13,385 Charge-offs (59 ) - - - - - (438 ) (17 ) (514 ) Recoveries 5 - - 1 - - 153 42 201 Provision 123 (317 ) 2 204 (6 ) 8 333 (472 ) (125 ) Ending balance $ 1,616 $ 1,161 $ 171 $ 7,067 $ 860 $ 409 $ 1,614 $ 49 $ 12,947 Nine Months Ended September 30, 2022: Allowance for credit losses Beginning balance $ 1,074 $ 791 $ 168 $ 4,549 $ 1,325 $ 426 $ 1,911 $ 108 $ 10,352 Charge-offs (169 ) - - (19 ) - - (632 ) (35 ) (855 ) Recoveries 23 - 2 1 - - 388 9 423 Provision (104 ) 215 (36 ) (325 ) 575 216 402 57 1,000 Ending balance $ 824 $ 1,006 $ 134 $ 4,206 $ 1,900 $ 642 $ 2,069 $ 139 $ 10,920 Three Months Ended September 30, 2022: Allowance for credit losses Beginning balance $ 902 $ 1,094 $ 139 $ 4,395 $ 1,759 $ 593 $ 1,900 $ 137 $ 10,919 Charge-offs (169 ) - - - - - (213 ) (4 ) (386 ) Recoveries 6 - 1 1 - - 76 3 87 Provision 85 (88 ) (6 ) (190 ) 141 49 306 3 300 Ending balance $ 824 $ 1,006 $ 134 $ 4,206 $ 1,900 $ 642 $ 2,069 $ 139 $ 10,920 September 30, 2022: Allowance for credit losses Ending balance: individually evaluated for impairment $ - $ - $ 21 $ - $ - $ - $ - $ - $ 21 Ending balance: collectively evaluated for impairment 824 1,006 113 4,206 1,900 642 2,069 139 10,899 Ending balance $ 824 $ 1,006 $ 134 $ 4,206 $ 1,900 $ 642 $ 2,069 $ 139 $ 10,920 Loans Ending balance: individually evaluated for impairment $ - $ 234 $ 683 $ 93 $ 96 $ 248 $ - $ - $ 1,354 Ending balance: collectively evaluated for impairment 73,227 124,660 15,316 457,531 55,415 34,320 91,425 4,728 856,622 Ending balance $ 73,227 $ 124,894 $ 15,999 $ 457,624 $ 55,511 $ 34,568 $ 91,425 $ 4,728 $ 857,976 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 September 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 $ 279 $ 26 $ - $ 105 $ 410 $ 77,005 $ 77,415 Agricultural 4,770 2,675 - 847 8,292 123,278 131,570 Real estate – residential 485 203 - 195 883 11,603 12,486 Real estate – commercial 469 520 - 844 1,833 528,042 529,875 Real estate - construction & land - - - - - 58,462 58,462 Equity Lines of Credit 420 145 - 452 1,017 37,468 38,485 Auto 1,130 629 - 920 2,679 104,600 107,279 Other 69 26 - 966 1,061 5,033 6,094 Total $ 7,622 $ 4,224 $ - $ 4,329 $ 16,175 $ 945,491 $ 961,666 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 September 30, 2023 Commercial -1st SFR-1st SFR-2nd SFR-3rd Auto Auto Equipment Crops Deed Deed Deed Deed New Used Total Commercial $ 67 $ - $ - $ - $ - $ - $ - $ 67 Agricultural - 847 - - - - 847 Real estate – residential - - 195 - - - 195 Real estate – commercial - - 316 341 44 143 - 844 Real estate - construction & land - - - - - - - Equity Lines of Credit - - 184 268 - - 452 Auto - - - - 559 361 920 Other - - - - - - - Total $ 67 $ 847 $ 316 $ 720 $ 312 $ 143 $ 559 $ 361 $ 3,325 There were no new troubled debt restructurings during the twelve December 31, 2022. no twelve twelve December 31, 2022. |