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Loans and Leases
 12 Months Ended
Dec. 31, 2024
Loans and Leases [Abstract]  
Loans and Leases
Note 4—Loans and Leases
Loans and leases as of the dates indicated consisted of the following:
   
December 31,
  
(Dollars in thousands)
  
2024
    
2023
  
Loans and leases held for investment, net
            
Real estate:
            
Commercial
  
$
1,360,841
    
$
1,323,038
  
Agricultural
    
751,026
      
742,009
  
Residential and home equity
    
404,399
      
399,982
  
Construction
    
194,903
      
212,362
  
Total real estate
    
2,711,169
      
2,677,391
  
Commercial & industrial
     504,403       499,373  
Agricultural
    
289,847
      
313,737
  
Commercial leases
    
179,718
      
169,684
  
Consumer and other
    
5,084
      
5,212
  
Total gross loans and leases
    
3,690,221
      
3,665,397
  
Unearned income
    
(11,833
)
    
(10,708
)
Total net loans and leases
    
3,678,388
      
3,654,689
  
Allowance for credit losses
    
(75,283
)
    
(74,965
)
Total loans and leases held for investment, net
  
$
3,603,105
    
$
3,579,724
  

At December 31, 2024, the portion of loans that were approved for pledging as collateral on borrowing lines with the FHLB and the Federal Reserve Bank (“FRB”) were $1.2 billion and $1.4 billion, respectively. The borrowing capacity on these loans was $801.7 million from FHLB and $1.1 billion from the FRB at December 31, 2024.


The following tables show an aging analysis of the loan and lease portfolio, net of unearned income, by the time past due for the periods indicated:
 
  
December 31, 2024
  
(Dollars in thousands)
  
30-89 Days
Past Due
    
90+ Days
Past Due
   

Non-accrual
    
Total Past
Due and
Nonaccrual
    Current    
Total
    
Non-accrual
with no ACL
  
Loans and leases held for investment, net
                                           
Real estate:
                                           
Commercial
 
$
-
    
$
-
    
$
170
    
$
170
    
$
1,353,101
    
$
1,353,271
     $
170  
Agricultural
    
-
      
-
      
-
      
-
      
751,026
      
751,026
       -  
Residential and home equity
    
-
      
-
      
-
      
-
      
404,399
      
404,399
       -  
Construction
    
-
      
-
      
-
      
-
      
194,903
      
194,903
       -  
Total real estate
    
-
      
-
      
170
      
170
      
2,703,429
      
2,703,599
       170  
Commercial & industrial
    
33
      
-
      
759
      
792
      
503,611
      
504,403
       -  
Agricultural
    
36
      
-
      
-
      
36
      
289,811
      
289,847
       -  
Commercial leases
    
-
      
-
      
-
      
-
      
175,455
      
175,455
       -  
Consumer and other
    
5
      
-
      
-
      
5
      
5,079
      
5,084
       -  
Total loans and leases, net
  
$
74
    
$
-
    
$
929
    
$
1,003
    
$
3,677,385
    
$
3,678,388
     $
170  

 
  
December 31, 2023
  
(Dollars in thousands)
  
30-89 Days
Past Due
    
90+ Days
Past Due
    
Non-accrual
    
Total Past
Due and
Nonaccrual
    
Current
    
Total
    
Non-accrual
with no ACL
  
Loans and leases held for investment, net
                                           
Real estate:
                                           
Commercial
 
$
-
    
$
-
    
$
-
    
$
-
    
$
1,314,928
    
$
1,314,928
     $ -  
Agricultural
    
-
      
-
      
-
      
-
      
742,009
      
742,009
       -  
Residential and home equity
    
36
      
-
      
-
      
36
      
399,946
      
399,982
       -  
Construction
    
-
      
-
      
-
      
-
      
212,362
      
212,362
       -  
Total real estate
    
36
      
-
      
-
      
36
      
2,669,245
      
2,669,281
       -  
Commercial & industrial
     32      
-
      
-
      
32
      
499,341
      
499,373
       -  
Agricultural
    
-
      
-
      
-
      
-
      
313,737
      
313,737
       -  
Commercial leases
    
-
      
-
      
-
      
-
      
167,086
      
167,086
       -  
Consumer and other
    
3
      
-
      
-
      
3
      
5,209
      
5,212
       -  
Total loans and leases, net
  
$
71
    
$
-
    
$
-
    
$
71
    
$
3,654,618
    
$
3,654,689
     $ -  

When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company. The Company’s modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended and/or the modified interest rate and payment terms are not commensurate with the current market. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers.

The following tables present the amortized cost of loans that were both experiencing financial difficulty and modified, by portfolio segment and type of modification, during the periods presented. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each portfolio segment of financing receivable is also presented below:

   
December 31, 2024
  
   
Amortized cost associated with the following modification types:
    
   
 
(Dollars in thousands)
  
Interest
Rate
reduction
    
Maturity
or term
extension
    
Principal
foregiveness
    
Payment
deferral
    
Multiple
modification
types1
    
Total2
    
Percentage
 of total loan
  segment
  
Loans and leases held for investment, net
                                          
Real estate:
                                          
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
      
0.00
%
Agricultural
    
-
      
-
      
-
      
8,567
      
2,197
      
10,764
      
1.43
%
Residential and home equity
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Construction
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
-
      
-
      
8,567
      
2,197
      
10,764
      
0.40
%
Commercial & industrial
    
-
      
2,500
      
-
      
-
      
-
      
2,500
      
0.50
%
Agricultural
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Commercial leases
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total
  
$
-
    
$
2,500
    
$
-
    
$
8,567
    
$
2,197
    
$
13,264
      
0.36
%

1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.
2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $0 million at December 31, 2024.

During the twelve months ended December 31, 2024, the Company had one agricultural real estate borrower with five loans that had principal and interest deferrals ranging from two to four months.  One of the agricultural real estate loans had the contractual term extended by four months. In addition, the Company had one commercial & industrial loan where the contractual term was extended by two months.

   
December 31, 2023
  
   
Amortized cost associated with the following modification types:
  
(Dollars in thousands)
  
Interest
Rate
reduction
Maturity
or term
extension
Principal
foregiveness
Payment
deferral
Multiple
modification
types1
Total2
Percentage
 of total loan
segment
  
Loans and leases held for investment, net
                                          
Real estate:
                                          
Commercial
  
$
-
    
$
1,600
    
$
-
    
$
-
    
$
-
    
$
1,600
      
0.12
%
Agricultural
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Residential and home equity
    
-
      
-
      
-
      
-
      
121
      
121
      
0.03
%
Construction
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
1,600
      
-
      
-
      
121
      
1,721
      
0.06
%
Commercial & industrial
    
-
      
4,669
      
-
      
-
      
-
      
4,669
      
0.93
%
Agricultural
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Commercial leases
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total
  
$
-
    
$
6,269
    
$
-
    
$
-
    
$
121
    
$
6,390
      
0.17
%

1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.
2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $3.3 million at December 31, 2023.

During the twelve months ended December 31, 2023, we had one residential real estate loan that had the contractual interest rate decreased by 1.00% and the contractual term was extended by 120 months.  In addition, we had an additional borrower with one commercial real estate loan that had the contractual term extended by 119 months, and two commercial & industrial loans that had the contractual term extended by eleven months.
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. A payment default is defined as a loan having a payment past due 90 days or more after a modification took place. The modified loans presented in the tables above were current as of December 31, 2024 and 2023.

The effect of modifications made to borrowers experiencing financial difficulty is already included in the ACL because of the measurement methodologies used to estimate the ACL; therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification.

The following table presents outstanding loan and lease balances held for investment net of unearned income by segment, credit risk rating categories, vintage year by segment of financing receivable, and current period gross charge-offs by year of origination as follows:

   
December 31, 2024
        
   
Term Loans Amortized Cost Basis by Origination Year
                    
(Dollars in thousands)
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Revolving
Loans
Amortized
Cost
      Revolving
Loans
Converted
to Term		    
Total
  
Net loans and leases held for investment
                                                      
Real estate:
                                                      
Commercial
                                                      
Pass
  
$
63,216
    
$
117,550
    
$
163,875
    
$
209,222
    
$
134,254
    
$
292,326
    
$
270,231
     $
 99,819    
$
1,350,493
  
Special mention
    
-
      
-
      
1,138
      
-
      
-
      
170
      
1,470
       -      
2,778
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Commercial
  
$
63,216
    
$
117,550
    
$
165,013
    
$
209,222
    
$
134,254
    
$
292,496
    
$
271,701
     $ 99,819    
$
1,353,271
  
Commercial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
      $ -    
$
-
  
                                                                         
Agricultural
                                                                        
Pass
  
$
24,877
    
$
36,693
    
$
69,209
    
$
38,847
    
$
46,452
    
$
169,301
    
$
309,661
     $ 32,086    
$
727,126
  
Special mention
    
-
      
-
      
-
      
-
      
2,099
      
5,011
      
16,790
       -      
23,900
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Agricultural
  
$
24,877
    
$
36,693
    
$
69,209
    
$
38,847
    
$
48,551
    
$
174,312
    
$
326,451
     $ 32,086    
$
751,026
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $
 -    
$
-
  
                                                                         
Residential and home equity
                                                                        
Pass
  
$
33,036
    
$
37,378
    
$
57,760
    
$
82,936
    
$
72,304
    
$
72,360
    
$
47,669
     $ 65    
$
403,508
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
85
      
-
       -      
85
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
603
      
203
       -      
806
  
Total Residential and home equity
  
$
33,036
    
$
37,378
    
$
57,760
    
$
82,936
    
$
72,304
    
$
73,048
    
$
47,872
     $ 65    
$
404,399
  
Residential and home equity
                                                                        
Current-period gross charge-offs
  
$
-
    
$
29
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
29
  
                                                                         
Construction
                                                                        
Pass
  
$
5,774
    
$
-
    
$
1,000
    
$
-
    
$
-
    
$
1,375
    
$
186,754
     $ -    
$
194,903
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total construction
  
$
5,774
    
$
-
    
$
1,000
    
$
-
    
$
-
    
$
1,375
    
$
186,754
     $ -    
$
194,903
  
Construction
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $
 -    
$
-
  
                                                                         
Total Real estate
  
$
126,903
    
$
191,621
    
$
292,982
    
$
331,005
    
$
255,109
    
$
541,231
    
$
832,778
     $ 131,970    
$
2,703,599
  
                                                                         
Commercial & industrial
                                                                        
Pass
  
$
23,235
    
$
39,415
    
$
20,065
    
$
16,715
    
$
3,525
    
$
6,192
    
$
363,947
     $
 24,269    
$
497,363
  
Special mention
    
-
      
2,280
      
67
      
3
      
-
      
381
      
1,017
       2,500      
6,248
  
Substandard
    
-
      
107
      
-
      
33
      
-
      
-
      
422
    
230      
792
  
Total Commercial & industrial
  
$
23,235
    
$
41,802
    
$
20,132
    
$
16,751
    
$
3,525
    
$
6,573
    
$
365,386
     $ 26,999    
$
504,403
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
  
$
231
    
$
176
    
$
-
    
$
44
    
$
100
    
$
185
    
$
-
     $ -    
$
736
  
 
                                                                        
Agricultural
                                                                        
Pass
  
$
2,831
    
$
2,820
    
$
2,584
    
$
1,708
    
$
393
    
$
2,471
    
$
270,595
     $ 6,325    
$
289,727
  
Special mention
    
-
      
-
      
41
      
-
      
-
      
-
      
-
       43      
84
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
36
       -      
36
  
Total Agricultural
  
$
2,831
    
$
2,820
    
$
2,625
    
$
1,708
    
$
393
    
$
2,471
    
$
270,631
     $ 6,368    
$
289,847
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  

 
  
December 31, 2024
  
   
Term Loans Amortized Cost Basis by Origination Year
                    
(Dollars in thousands)
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Revolving
Loans
Amortized
Cost
      Revolving
Loans
Converted
to Term		    
Total
  
Net loans and leases held for investment
                                                      
Commercial leases
                                              
       
Pass
  
$
31,977
    
$
74,956
    
$
21,859
    
$
8,314
    
$
8,065
    
$
26,182
    
$
-
     $ -    
$
171,353
  
Special mention
    
-
      
-
      
4,102
      
-
      
-
      
-
      
-
       -      
4,102
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Commercial leases
  
$
31,977
    
$
74,956
    
$
25,961
    
$
8,314
    
$
8,065
    
$
26,182
    
$
-
     $
 -    
$
175,455
  
Commercial leases
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  
                                                                         
Consumer and other
                                                                        
Pass
  
$
1,049
    
$
1,195
    
$
535
    
$
71
    
$
13
    
$
1,349
    
$
693
     $ -    
$
4,905
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Substandard
    
161
      
-
      
-
      
-
      
-
      
18
      
-
    
-      
179
  
Total Consumer and other
  
$
1,210
    
$
1,195
    
$
535
    
$
71
    
$
13
    
$
1,367
    
$
693
     $
 -    
$
5,084
  
Consumer and other
                                                                        
Current-period gross charge-offs
  
$
63
    
$
1
    
$
-
    
$
-
    
$
-
    
$
29
    
$
-
     $ -    
$
93
  
Total net loans and leases
                                                                        
Pass
  
$
185,995
    
$
310,007
    
$
336,887
    
$
357,813
    
$
265,006
    
$
571,556
    
$
1,449,550
     $ 162,564    
$
3,639,378
  
Special mention
    
-
      
2,280
      
5,348
      
3
      
2,099
      
5,647
      
19,277
       2,543      
37,197
  
Substandard
    
161
      
107
      
-
      
33
      
-
      
621
      
661
       230      
1,813
  
Total net loans and leases
  
$
186,156
    
$
312,394
    
$
342,235
    
$
357,849
    
$
267,105
    
$
577,824
    
$
1,469,488
     $ 165,337    
$
3,678,388
  
Total current-period gross charge-offs
  
$
294
    
$
206
    
$
-
    
$
44
    
$
100
    
$
214
    
$
-
     $ -    
$
858
  

   
December 31, 2023
  
   
Term Loans Amortized Cost Basis by Origination Year
                    
(Dollars in thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
Amortized
Cost
      Revolving
Loans
Converted
to Term		    
Total
  
Net loans and leases held for investment
                                              
       
Real estate:
                                                        
Commercial
                                                        
Pass
  
$
121,418
    
$
169,171
    
$
221,708
    
$
143,502
    
$
67,505
    
$
261,344
    
$
249,087
     $ 74,982    
$
1,308,717
  
Special mention
    
-
      
2,395
      
-
      
-
      
-
      
2,216
      
1,600
       -      
6,211
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Commercial
  
$
121,418
    
$
171,566
    
$
221,708
    
$
143,502
    
$
67,505
    
$
263,560
    
$
250,687
     $ 74,982    
$
1,314,928
  
Commercial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  
                                                                         
Agricultural
                                                                        
Pass
  
$
37,849
    
$
71,367
    
$
40,848
    
$
50,445
    
$
12,008
    
$
165,267
    
$
328,105
     $ 23,246    
$
729,135
  
Special mention
    
-
      
-
      
-
      
594
      
2,020
      
9,715
      
-
       -      
12,329
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
545
      
-
       -      
545
  
Total Agricultural
  
$
37,849
    
$
71,367
    
$
40,848
    
$
51,039
    
$
14,028
    
$
175,527
    
$
328,105
     $ 23,246    
$
742,009
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  
                                                                         
Residential and home equity
                                                                        
Pass
  
$
41,173
    
$
62,505
    
$
88,559
    
$
78,810
    
$
13,299
    
$
70,339
    
$
44,463
     $
 69    
$
399,217
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
765
      
-
    
-      
765
  
Total Residential and home equity
  
$
41,173
    
$
62,505
    
$
88,559
    
$
78,810
    
$
13,299
    
$
71,104
    
$
44,463
     $
 69    
$
399,982
  
Residential and home equity
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
14
    
$
-
     $ -    
$
14
  
                                                                         
Construction
                                                                        
Pass
  
$
-
    
$
2,500
    
$
-
    
$
-
    
$
1,575
    
$
-
    
$
208,287
     $ -    
$
212,362
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total construction
  
$
-
    
$
2,500
    
$
-
    
$
-
    
$
1,575
    
$
-
    
$
208,287
     $ -    
$
212,362
  
Construction
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  
                                                                         
Total Real estate
  
$
200,440
    
$
307,938
    
$
351,115
    
$
273,351
    
$
96,407
    
$
510,191
    
$
831,542
     $
 98,297    
$
2,669,281
  
                                                                         
Commercial & industrial
                                                                        
Pass
  
$
49,162
    
$
25,795
    
$
21,695
    
$
7,193
    
$
4,123
    
$
6,674
    
$
352,502
     $ 19,295    
$
486,439
  
Special mention
    
2,500
      
27
      
4,903
      
466
      
-
      
-
      
4,519
       43      
12,458
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
476
      
-
       -      
476
  
Total Commercial & industrial
  
$
51,662
    
$
25,822
    
$
26,598
    
$
7,659
    
$
4,123
    
$
7,150
    
$
357,021
     $ 19,338    
$
499,373
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  
                                                                         
Agricultural
                                                                        
Pass
  
$
3,013
    
$
4,585
    
$
2,296
    
$
688
    
$
1,026
    
$
2,116
    
$
292,391
     $ 4,381    
$
310,496
  
Special mention
    
-
      
52
      
75
      
-
      
-
      
-
      
3,109
       -      
3,236
  
Substandard
    
-
      
-
      
-
      
-
      
5
      
-
      
-
       -      
5
  
Total Agricultural
  
$
3,013
    
$
4,637
    
$
2,371
    
$
688
    
$
1,031
    
$
2,116
    
$
295,500
     $ 4,381    
$
313,737
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  

   
December 31, 2023
  
   
Term Loans Amortized Cost Basis by Origination Year
                    
(Dollars in thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
Amortized
Cost
      Revolving
Loans
Converted
to Term		    
Total
  
Net loans and leases held for investment
                                                      
Commercial leases
                                              
       
Pass
  
$
81,287
    
$
31,954
    
$
10,786
    
$
9,514
    
$
4,667
    
$
28,872
    
$
-
     $ -    
$
167,080
  
Special mention
    
-
      
-
      
-
      
-
      
6
      
-
      
-
       -      
6
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Commercial leases
  
$
81,287
    
$
31,954
    
$
10,786
    
$
9,514
    
$
4,673
    
$
28,872
    
$
-
     $ -    
$
167,086
  
Commercial leases
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
     $ -    
$
-
  
                                                                         
Consumer and other
                                                                        
Pass
  
$
1,650
    
$
930
    
$
375
    
$
48
    
$
45
    
$
1,400
    
$
588
     $ -    
$
5,036
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Substandard
    
152
      
-
      
-
      
-
      
-
      
24
      
-
       -      
176
  
Total Consumer and other
  
$
1,802
    
$
930
    
$
375
    
$
48
    
$
45
    
$
1,424
    
$
588
     $ -    
$
5,212
  
Consumer and other
                                                                        
Current-period gross charge-offs
  
$
41
    
$
3
    
$
-
    
$
-
    
$
-
    
$
2
    
$
-
     $ -    
$
46
  
Total net loans and leases
                                                                        
Pass
  
$
335,552
    
$
368,807
    
$
386,267
    
$
290,200
    
$
104,248
    
$
536,012
    
$
1,475,423
     $ 121,973    
$
3,618,482
  
Special mention
    
2,500
      
2,474
      
4,978
      
1,060
      
2,026
      
11,931
      
9,228
       43    

34,240
  
Substandard
    
152
      
-
      
-
      
-
      
5
      
1,810
      
-
    
-    

1,967
  
Total net loans and leases
  
$
338,204
    
$
371,281
    
$
391,245
    
$
291,260
    
$
106,279
    
$
549,753
    
$
1,484,651
     $ 122,016    
$
3,654,689
  
Total current-period gross charge-offs
  
$
41
    
$
3
    
$
-
    
$
-
    
$
-
    
$
16
    
$
-
     $ -    
$
60
  

The Company, in the ordinary course of business, grants loans to the Company’s executive officers and directors, including their families and firms in which they are principal owners. Activity in such loans is summarized as follows:

   
December 31,
  
(Dollars in thousands)
  
2024
    
2023
  
             
Balance at beginning of the period
  
$
17,035
    
$
17,521
  
New loans or advances during year
    
1,871
      
1,706
  
Repayments
    
(3,280
)
    
(2,192
)
Balance at end of period
  
$
15,626
    
$
17,035
  

A loan or lease is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans or leases are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The collateral on the loans and leases is a significant portion of what secures the collateral dependent loans or leases and significant changes to the fair value of the collateral can impact the allowance for credit losses. During 2024, there were no significant changes to the collateral that secures the collateral dependent loans, whether due to general deterioration or with credit quality indicators like appraisal value. The following tables present the amortized cost basis for collateral dependent loans and leases by type as of the dates indicated:

   
December 31, 2024
  
(Dollars in thousands)
  
Real Estate
    
Vehicles and Equipment
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
170
    
$
-
    
$
170
  
Agricultural
    
-
      
-
      
-
  
Residential and home equity
    
-
      
-
      
-
  
Construction
    
-
      
-
      
-
  
Total Real estate
    
170
      
-
      
170
  
Commercial & industrial
    
-
      
759
      
759
  
Agricultural
    
-
      
-
      
-
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
-
      
-
  
Total gross loans and leases
  
$
170
    
$
759
    
$
929
  

   
December 31, 2023
  
(Dollars in thousands)
  
Real Estate
    
Vehicles and Equipment
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
1,517
    
$
-
    
$
1,517
  
Agricultural
    
6,118
      
-
      
6,118
  
Residential and home equity
    
1,607
      
-
      
1,607
  
Construction
    
-
      
-
      
-
  
Total Real estate
    
9,242
      
-
      
9,242
  
Commercial & industrial
    
-
      
473
      
473
  
Agricultural
    
-
      
5
      
5
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
164
      
164
  
Total gross loans and leases
  
$
9,242
    
$
642
    
$
9,884
  



Allowance for Credit Losses

The allowance for credit losses (“ACL”) is the combination of the allowance for credit losses for loan and lease losses and the allowance for credit losses for unfunded loan commitments. The ACL for unfunded loan commitments is included within “Interest payable and other liabilities” on the consolidated balance sheets.



The following tables present a summary of the activity in the ACL for loan and lease losses and ACL for unfunded loan commitments for the periods indicated:


   
Year Ended December 31,
  
   
2024
    
2023
  
(Dollars in thousands)
  
ACL for
Loans and
Leases
    
ACL for
Unfunded
Commitments
    
Allowance
for
Credit Losses
    
ACL for
Loans and
Leases
    
ACL for
Unfunded
Commitments
    
Allowance
for
Credit Losses
  
Balance at beginning of period
  
$
74,965
    
$
3,690
    
$
78,655
    
$
66,885
    
$
2,090
    
$
68,975
  
Provision for/(reversal of) credit losses
    
1,000
      
(1,000
)
    
-
      
7,750
      
1,600
      
9,350
  
Charge-offs
    
(858
)
    
-
      
(858
)
    
(60
)
    
-
      
(60
)
Recoveries
    
176
      
-
      
176
      
390
      
-
      
390
  
Net (charge-offs)/recoveries
    
(682
)
    
-
      
(682
)
    
330
      
-
      
330
  
Balance at end of period
  
$
75,283
    
$
2,690
    
$
77,973
    
$
74,965
    
$
3,690
    
$
78,655
  


Changes in the allowance for credit losses on loans and leases are as follows:


   
Year Ended December 31, 2024
  
(Dollars in thousands)
  
Balance at
beginning of
year
    
Provision
for/(recapture
of) credit losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of year
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
26,093
    
$
(5,711
)
  
$
-
    
$
-
    
$
20,382
  
Agricultural
    
7,744
      
15,871
      
-
      
-
      
23,615
  
Residential and home equity
    
7,770
      
(424
)
    
(29
)
    
23
      
7,340
  
Construction
    
4,432
      
(1,377
)
    
-
      
-
      
3,055
  
Total real estate
    
46,039
      
8,359
      
(29
)
    
23
      
54,392
  
Commercial & industrial
    
13,380
      
(4,939
)
    
(736
)
    
86
      
7,791
  
Agricultural
    
8,872
      
(2,163
)
    
-
      
16
      
6,725
  
Commercial leases
    
6,537
      
(384
)
    
-
      
-
      
6,153
  
Consumer and other
    
137
      
127
      
(93
)
    
51
      
222
  
Total allowance for credit losses
  
$
74,965
    
$
1,000
    
$
(858
)
  
$
176
    
$
75,283
  


   
Year Ended December 31, 2023
  
(Dollars in thousands)
  
Balance at
beginning of
year
    
Provision
for/(recapture
of) credit losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of year
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
18,055
    
$
7,868
    
$
-
    
$
170
    
$
26,093
  
Agricultural
    
14,496
      
(6,752
)
    
-
      
-
      
7,744
  
Residential and home equity
    
7,508
      
211
      
(14
)
    
65
      
7,770
  
Construction
    
3,026
      
1,406
      
-
      
-
      
4,432
  
Total real estate
    
43,085
      
2,733
      
(14
)
    
235
      
46,039
  
Commercial & industrial
    
11,503
      
1,804
      
-
      
73
      
13,380
  
Agricultural
    
10,202
      
(1,381
)
    
-
      
51
      
8,872
  
Commercial leases
    
1,924
      
4,613
      
-
      
-
      
6,537
  
Consumer and other
    
171
      
(19
)
    
(46
)
    
31
      
137
  
Total allowance for credit losses
  
$
66,885
    
$
7,750
    
$
(60
)
  
$
390
    
$
74,965