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Loans and Leases
 3 Months Ended
Mar. 31, 2025
Loans and Leases [Abstract]  
Loans and Leases
Note 3—Loans and Leases

Loans and leases as of the dates indicated consisted of the following:
(Dollars in thousands)
  
March 31,
2025
    
December 31,
2024
  
Loans and leases held for investment, net
           
Real estate:
            
Commercial
  
$
1,355,261
    
$
1,360,841
  
Agricultural
    
737,314
      
751,026
  
Residential and home equity
    
396,044
      
404,399
  
Construction
    
185,348
      
194,903
  
Total real estate
    
2,673,967
      
2,711,169
  
Commercial & industrial
    
482,196
      
504,403
  
Agricultural
   
258,704
      
289,847
  
Commercial leases
    
175,384
      
179,718
  
Consumer and other
    
5,260
      
5,084
  
Total gross loans and leases
    
3,595,511
      
3,690,221
  
Unearned income
    
(11,337
)
    
(11,833
)
Total net loans and leases
    
3,584,174
      
3,678,388
  
Allowance for credit losses
    
(75,423
)
    
(75,283
)
Total loans and leases held for investment, net
  
$
3,508,751
    
$
3,603,105
  

At March 31, 2025, the portion of loans that were approved for pledging as collateral on borrowing lines with the FHLB and the Federal Reserve Bank (“FRB”) were $1.3 billion and $1.4 billion, respectively. The borrowing capacity on these loans was $802.7 million from FHLB and $1.1 billion from the FRB at March 31, 2025.


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:
   
March 31, 2025
  
(Dollars in thousands)
  
30-89 Days
Past Due
    
90+ Days
Past Due
    
Non-accrual
    
Total Past
Due and
Non-accrual
      Current    
Total
      
Non-accrual
with no ACL
  
Loans and leases held for investment, net
                                         
Real estate:
                                          
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
     $ 1,347,906    
$
1,347,906
     $ -  
Agricultural
    
-
      
-
       -      
-
       737,314      
737,314
       -  
Residential and home equity
    
-
      
-
      
-
      
-
       396,044      
396,044
       -  
Construction
    
-
      
-
      
-
      
-
       185,348      
185,348
       -  
Total real estate
    
-
      
-
      
-
      
-
       2,666,612      
2,666,612
       -  
Commercial & industrial
    
-
      
-
       193      
193
       482,003      
482,196
       193  
Agricultural
    
-
      
-
      
-
      
-
       258,704      
258,704
       -  
Commercial leases
    
-
      
-
      
-
      
-
       171,402      
171,402
       -  
Consumer and other
    
1
      
-
      
-
      
1
       5,259      
5,260
       -  
Total loans and leases, net
  
$
1
    
$
-
    
$
193
    
$
194
     $ 3,583,980    
$
3,584,174
     $ 193  

 
  
December 31, 2024
  
(Dollars in thousands)
  
30-89 Days
Past Due
    
90+ Days
Past Due
    
Non-accrual
    
Total Past
Due and
Non-accrual
      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  

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 table presents 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:


  
March 31, 2025
  
 
  
Amortized cost associated with the following modification types:
              
(Dollars in thousands)
  
Interest
rate
reduction
    
Maturity or
term
extension
    
Principal
forgiveness
    
Payment
deferral
    
Multiple
modification
types1
    
Total2
    
Percentage
of total loan
segment
  
Loans and leases held for investment, net
                                          
Real estate:
                                          
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
      
0.00
%
Agricultural
    
-
      
983
      
-
      
1,656
      
-
      
2,639
      
0.36
%
Residential and home equity
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Construction
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
983
      
-
      
1,656
      
-
      
2,639
      
0.10
%
Commercial & industrial
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Agricultural
    
-
      
43
      
-
      
-
      
-
      
43
      
0.02
%
Commercial leases
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total
  
$
-
    
$
1,026
    
$
-
    
$
1,656
    
$
-
    
$
2,682
      
0.07
%



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 March 31, 2025.


During the three months ended March 31, 2025, the Company modified one agricultural borrower with four agricultural real estate loans and one agricultural production loan. Two of the loans had the contractual term extended by six months and three loans had principal and interest deferrals of six months.



The Company did not enter into any loan modifications with borrowers experiencing financial difficulty during the three months ended March 31, 2024.



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 table above were current as of March 31, 2025.



There were no loans that were modified within the last 12 months that had a payment default or were past due during the three months ended March 31, 2025.


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 Company assigns a risk rating to all loans and leases and periodically performs detailed reviews of all such loans and leases over a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans and leases, such as consumer and residential real estate, a credit grade is established at inception, and then updated only when the loan or lease becomes contractually delinquent or when the borrower requests a modification. For larger balance loans and leases, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans and leases. These credit quality indicators are used to assign a risk rating to each individual loan or lease. These risk ratings can be grouped into five major categories, defined as follows:



Pass — A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management’s close attention. This category also includes “Watch” loans, which is a loan with an emerging weakness in either the individual credit or industry that requires additional attention. A credit may also be classified Watch if cash flows have not yet stabilized, such as in the case of a development project.



Special mention — A special mention loan or lease has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company’s credit position at some future date. Special mention loans and leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard — A substandard loan or lease is not adequately protected by the current financial condition and paying capacity of the borrower or the value of the collateral pledged, if any. Loans or leases classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well-defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project’s failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful — Loans or leases classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable or improbable.

Loss — Loans or leases classified as loss are considered uncollectible. Once a loan or lease becomes delinquent and repayment becomes questionable, the Company will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Company will estimate its probable loss and immediately charge-off some or all of the balance.
The following tables present 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:


   
March 31, 2025
        
   
Term Loans and Leases Amortized Cost Basis by Origination Year
                    
(Dollars in thousands)
  
2025
    
2024
    
2023
    
2022
    
2021
    
Prior
    
Revolving
Loans
Amortized
Cost
    
Revolving
Loans
Converted
to Term
    
Total
  
Net loans and leases held for investment
                                                      
Real estate:
                                                      
Commercial
                                                      
Pass
  
$
23,588
    
$
60,623
    
$
116,823
    
$
162,923
    
$
207,575
    
$
413,700
    
$
258,034
     $ 102,046    
$
1,345,312
  
Special mention
    
-
      
-
      
-
      
1,124
      
-
      
-
      
1,470
       -      
2,594
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Commercial
  
$
23,588
    
$
60,623
    
$
116,823
    
$
164,047
    
$
207,575
    
$
413,700
    
$
259,504
     $
102,046    
$
1,347,906
  
Commercial
                                                                       
Current-period gross charge-offs
  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $
-     $ -  
                                                                         
Agricultural
                                                                       
Pass
  
$
8,016
    
$
24,345
    
$
36,213
    
$
68,712
    
$
37,903
    
$
211,607
    
$
285,604
     $ 50,707    
$
723,107
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
3,100
      
11,107
       -      
14,207
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Agricultural
 
$
8,016
    
$
24,345
    
$
36,213
    
$
68,712
    
$
37,903
    
$
214,707
    
$
296,711
     $ 50,707    
$
737,314
  
Agricultural
                                                                        
Current-period gross charge-offs
   $ -     $ -     $ -     $ -     $ -     $ -     $ -     $
-     $ -  
                                                                         
Residential and home equity
                                                                        
Pass
  
$
5,741
    
$
31,444
    
$
35,404
    
$
53,446
    
$
80,548
    
$
141,583
    
$
46,939
     $
63    
$
395,168
  
Special mention
     -       -       -       -       -       76       -       -       76  
Substandard
    
-
      
-
      
-
      
-
      
-
      
598
      
202
       -      
800
  
Total Residential and home equity
  
$
5,741
    
$
31,444
    
$
35,404
    
$
53,446
    
$
80,548
    
$
142,257
    
$
47,141
     $
63    
$
396,044
  
Residential and home equity
                                                                        
Current-period gross charge-offs
   $ -     $ -     $ -     $ -     $ -     $ -     $ -     $
-     $ -  
                                                                         
Construction
                                                                        
Pass
  
$
-
    
$
5,761
    
$
-
    
$
900
    
$
-
    
$
1,375
    
$
177,312
     $
-    
$
185,348
  
Special mention
     -       -       -       -       -       -       -       -       -  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total construction
  
$
-
    
$
5,761
    
$
-
    
$
900
    
$
-
    
$
1,375
    
$
177,312
     $
-    
$
185,348
  
Construction
                                                                        
Current-period gross charge-offs
   $ -     $ -     $ -     $ -     $ -     $ -     $ -     $
-     $ -  
                                                                         
Total Real estate
  
$
37,345
    
$
122,173
    
$
188,440
    
$
287,105
    
$
326,026
    
$
772,039
    
$
780,668
     $
152,816    
$
2,666,612
  
                                                                         
Commercial & industrial
                                                                        
Pass
  
$
3,980
    
$
24,055
    
$
37,438
    
$
19,106
    
$
15,821
    
$
8,339
    
$
326,961
     $
40,596    
$
476,296
  
Special mention
    
-
      
-
      
2,280
      
61
      
-
      
357
      
581
       2,402      
5,681
  
Substandard
    
-
      
-
      
-
      
-
      
26
      
-
      
69
       124      
219
  
Total Commercial & industrial
  
$
3,980
    
$
24,055
    
$
39,718
    
$
19,167
    
$
15,847
    
$
8,696
    
$
327,611
     $
43,122    
$
482,196
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
   $ -     $ -     $ 69     $ 98     $ 53     $ 12     $ -     $
-     $ 232  

    March 31, 2025        
    Term Loans and Leases Amortized Cost Basis by Origination Year                    
(Dollars in thousands)   2025     2024     2023     2022     2021     Prior    
Revolving
Loans
Amortized
Cost
    
Revolving
Loans
Converted
to Term
     Total  
Net loans and leases held for investment                                                      
Agricultural
                                                      
Pass   $ 20     $ 3,257     $ 2,694     $ 2,383     $ 1,461     $ 2,696     $ 239,130     $ 6,956     $ 258,597  
Special mention     -       -       -       39       -       -       -       43       82  
Substandard     -       -       -       -       -       -       25       -       25  
Total Agricultural   $ 20     $ 3,257     $ 2,694     $ 2,422     $ 1,461     $ 2,696     $ 239,155     $ 6,999     $ 258,704  
Agricultural                                                                        
Current-period gross charge-offs   $ -     $ -     $ -     $ -     $ 34     $ -     $ -     $ -     $ 34  

                                                                       
Commercial leases                                                                        
Pass
  
$
2,125
    
$
31,296
    
$
73,204
    
$
20,930
    
$
7,206
    
$
32,583
    
$
-
     $ -    
$
167,344
  
Special mention
    
-
      
-
      
-
      
4,058
      
-
      
-
      
-
       -      
4,058
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Total Commercial leases
  
$
2,125
    
$
31,296
    
$
73,204
    
$
24,988
    
$
7,206
    
$
32,583
    
$
-
     $ -    
$
171,402
  
Commercial leases
                                                                        
Current-period gross charge-offs
   $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                                         
Consumer and other
                                                                        
Pass
  
$
754
    
$
838
    
$
1,077
    
$
398
    
$
54
    
$
1,279
    
$
705
     $ -    
$
5,105
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
       -      
-
  
Substandard
    
139
      
-
      
-
      
-
      
-
      
16
      
-
       -      
155
  
Total Consumer and other
  
$
893
    
$
838
    
$
1,077
    
$
398
    
$
54
    
$
1,295
    
$
705
     $ -    
$
5,260
  
Consumer and other
                                                                        
Current-period gross charge-offs
   $ 7     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ 7  
Total net loans and leases
                                                                       
Pass
  $ 44,224     $ 181,619     $ 302,853     $ 328,798     $ 350,568     $ 813,162     $ 1,334,685     $ 200,368     $ 3,556,277  
Special mention
    -       -       2,280       5,282       -       3,533       13,158       2,445       26,698  
Substandard
    139       -       -       -       26       614       296       124
 		      1,199  
Total net loans and leases
  
$
44,363
    
$
181,619
    
$
305,133
    
$
334,080
    
$
350,594
    
$
817,309
    
$
1,348,139
     $ 202,937    
$
3,584,174
  
Total current-period gross charge-offs
  $ 7     $ -     $ 69     $ 98     $ 87     $ 12     $ -     $ -     $ 273  

   
December 31, 2024
        
 
  
Term Loans and Leases 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
  

 
   December 31, 2024
        
   
Term Loans and Leases 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
                                                      
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   $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  

                                                                       
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
  

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:
   
March 31,
    
December 31,
  
(Dollars in thousands)
  
2025
    
2024
  

 		            
Balance at beginning of the period
  
$
15,626
    
$
17,035
  
New loans or advances during year
    
255
      
1,871
  
Effect of changes in composition of related parties
    (80 )     -  
Repayments
    
(67
)
    
(3,280
)
Balance at end of period
  
$
15,734
    
$
15,626
  


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.



The following table presents the amortized cost basis for collateral dependent loans and leases by type as of December 31, 2024:
   
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
  


There were no collateral dependent loans or leases at March 31, 2025.

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:

 
  
For the Three Months Ended March 31,
  
 
  
2025
    
2024
  
(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
  
$
75,283
    
$
2,690
    
$
77,973
    
$
74,965
    
$
3,690
    
$
78,655
  
Provision for credit losses
    
300
      
-
   
300
      
-
      
-
      
-
  
Charge-offs
    
(273
)
    
-
      
(273
)
    
(10
)
    
-
      
(10
)
Recoveries
    
113
      
-
      
113
      
63
      
-
      
63
  
Net (charge-offs)/recoveries
    
(160
)
    
-
      
(160
)
    
53
      
-
      
53
  
Balance at end of period
  
$
75,423
    
$
2,690
    
$
78,113
    
$
75,018
    
$
3,690
    
$
78,708
  




Changes in the ACL on loans and leases for the periods indicated are as follows:

  Three Months Ended March 31, 2025  
(Dollars in thousands)
  
Balance at
beginning of
period
    
Provision
for/(recapture
of) credit
losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of period
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
20,382
    
$
(69
)
  
$
-
    
$
-
     $ 20,313  
Agricultural
    
23,615
      
462
      
-
      
-
       24,077  
Residential and home equity
    
7,340
      
136
      
-
      
3
       7,479  
Construction
    
3,055
      
(407
)
    
-
      
-
       2,648  
Total real estate
    
54,392
      
122
      
-
      
3
       54,517  
Commercial & industrial
    
7,791
      
178
      
(232
)
    
106
       7,843  
Agricultural
    
6,725
      
(274
)
    
(34
)
    
-
       6,417  
Commercial leases
    
6,153
      
276
      
-
      
-
       6,429  
Consumer and other
    
222
      
(2
)
    
(7
)
    
4
       217  
Total allowance for credit losses
  
$
75,283
    
$
300
    
$
(273
)
  
$
113
     $ 75,423  

   
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