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Loans and Leases
 9 Months Ended
Sep. 30, 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)
  
September 30,
2025
    
December 31,
2024
  
Loans and leases held for investment, net
           
Real estate:
                
Commercial
  
$
1,425,598
    
$
1,360,841
  
Agricultural
    
710,789
      
751,026
  
Residential and home equity
    
404,635
      
404,399
  
Construction
    
170,681
      
194,903
  
Total real estate
    
2,711,703
      
2,711,169
  
Commercial & industrial
    
488,440
      
504,403
  
Agricultural
    
251,958
      
289,847
  
Commercial leases
    
165,754
      
179,718
  
Consumer and other
    
4,727
      
5,084
  
Total gross loans and leases
    
3,622,582
      
3,690,221
  
Unearned income
    
(14,236
)
    
(11,833
)
Total net loans and leases
    
3,608,346
      
3,678,388
  
Allowance for credit losses
    
(75,963
)
    
(75,283
)
Total loans and leases held for investment, net
  
$
3,532,383
    
$
3,603,105
  

At September 30, 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 $1.2 billion and $1.4 billion, respectively. The borrowing capacity on these loans was $805.9 million from FHLB and $1.1 billion from the FRB at September 30, 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:

   
September 30, 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
  
$
7,249
    
$
-
    
$
955
    
$
8,204
    
$
1,409,788
    
$
1,417,992
    
$
955
  
Agricultural
    
-
      
-
      
-
      
-
      
710,789
      
710,789
      
-
  
Residential and home equity
    
-
      
134
      
-
      
134
      
404,501
      
404,635
      
-
  
Construction
    
-
      
-
      
-
      
-
      
170,681
      
170,681
      
-
  
Total real estate
    
7,249
      
134
      
955
      
8,338
      
2,695,759
      
2,704,097
      
955
  
Commercial & industrial
    
-
      
-
      
-
      
-
      
488,440
      
488,440
      
-
  
Agricultural
    
16
      
-
      
-
      
16
      
251,942
      
251,958
      
-
  
Commercial leases
    
1,404
      
-
      
-
      
1,404
      
157,720
      
159,124
      
-
  
Consumer and other
    
8
      
-
      
-
      
8
      
4,719
      
4,727
      
-
  
Total loans and leases, net
  
$
8,677
    
$
134
    
$
955
    
$
9,766
    
$
3,598,580
    
$
3,608,346
    
$
955
  
   
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 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:

   
Three Months Ended September 30, 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
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Residential and home equity
    
-
      
56
      
-
      
-
      
-
      
56
      
0.01
%
Construction
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
56
      
-
      
-
      
-
      
56
      
0.00
%
Commercial & industrial
    
-
      
1,973
      
-
      
-
      
-
      
1,973
      
0.40
%
Agricultural
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Commercial leases
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total
  
$
-
    
$
2,029
    
$
-
    
$
-
    
$
-
    
$
2,029
      
0.06
%

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 during the three months ended September 30, 2025.

During the three months ended September 30, 2025, the Company modified one residential first mortgage loan with a 10-year maturity extension and re-amortization and one commercial loan with a maturity extension of 5 months.

   
Nine Months Ended September 30, 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
      
0.37
%
Residential and home equity
    
-
      
89
      
-
      
-
      
-
      
89
      
0.02
%
Construction
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
1,072
      
-
      
1,656
      
-
      
2,728
      
0.10
%
Commercial & industrial
    
-
      
1,973
      
-
      
-
      
-
      
1,973
      
0.40
%
Agricultural
    
-
      
43
      
-
      
-
      
-
      
43
      
0.02
%
Commercial leases
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
-
      
-
      
-
      
0.00
%
Total
  
$
-
    
$
3,088
    
$
-
    
$
1,656
    
$
-
    
$
4,744
      
0.13
%

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 during the nine months ended September 30, 2025.
During the nine months ended September 30, 2025, the Company modified four agricultural real estate loans and one agricultural production loan, all related to the same agricultural borrower. 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 also modified one home equity and one residential first mortgage loan with 10-year maturity extensions and re-amortizations and one commercial loan with a maturity extension of 5 months.

The Company did not enter into any loan modifications with borrowers experiencing financial difficulty during the three and nine months ended September 30, 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.

There was one loan modified within the last twelve months for $176,000 that had a payment default and was charged off during the nine months ended September 30, 2025 and none during the nine months ended September 30, 2024. There were no loans modified to borrowers with financial difficulty that had a payment default subsequent to modification during the three and nine months end September 30, 2025 and 2024.

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:

   
September 30, 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
  
$
142,589
    
$
39,281
    
$
115,585
    
$
157,726
    
$
195,827
    
$
373,009
    
$
256,616
    
$
126,059
    
$
1,406,692
  
Special mention
    
225
      
-
      
-
      
-
      
7,248
      
-
      
2,872
      
-
      
10,345
  
Substandard
    
-
      
-
      
-
      
955
      
-
      
-
      
-
      
-
      
955
  
Total Commercial
  
$
142,814
    
$
39,281
    
$
115,585
    
$
158,681
    
$
203,075
    
$
373,009
    
$
259,488
    
$
126,059
    
$
1,417,992
  
Commercial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
175
    
$
-
    
$
-
    
$
-
    
$
-
    
$
175
  
                                                                         
Agricultural
                                                                        
Pass
  
$
31,645
    
$
24,140
    
$
36,128
    
$
63,037
    
$
39,299
    
$
180,437
    
$
275,808
    
$
48,931
    
$
699,425
  
Special mention
    
3,156
      
-
      
-
      
-
      
-
      
3,100
      
5,108
      
-
      
11,364
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
34,801
    
$
24,140
    
$
36,128
    
$
63,037
    
$
39,299
    
$
183,537
    
$
280,916
    
$
48,931
    
$
710,789
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
180
    
$
939
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,119
  
                                                                         
Residential and home equity
                                                                        
Pass
  
$
27,780
    
$
30,047
    
$
33,424
    
$
51,862
    
$
78,030
    
$
132,843
    
$
49,851
    
$
355
    
$
404,192
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
51
      
-
      
-
      
51
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
56
      
336
      
-
      
392
  
Total Residential and home equity
  
$
27,780
    
$
30,047
    
$
33,424
    
$
51,862
    
$
78,030
    
$
132,950
    
$
50,187
    
$
355
    
$
404,635
  
Residential and home equity
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Construction
                                                                        
Pass
  
$
-
    
$
2,700
    
$
-
    
$
500
    
$
-
    
$
1,374
    
$
150,218
    
$
15,889
    
$
170,681
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
-
    
$
2,700
    
$
-
    
$
500
    
$
-
    
$
1,374
    
$
150,218
    
$
15,889
    
$
170,681
  
Construction
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Total Real estate
  
$
205,395
    
$
96,168
    
$
185,137
    
$
274,080
    
$
320,404
    
$
690,870
    
$
740,809
    
$
191,234
    
$
2,704,097
  
                                                                         
Commercial & industrial
                                                                        
Pass
  
$
19,562
    
$
22,263
    
$
32,421
    
$
17,112
    
$
14,010
    
$
6,420
    
$
340,648
    
$
31,389
    
$
483,825
  
Special mention
    
-
      
-
      
-
      
47
      
-
      
-
      
203
      
4,348
      
4,598
  
Substandard
    
-
      
-
      
-
      
-
      
17
      
-
      
-
      
-
      
17
  
Total Commercial & industrial
  
$
19,562
    
$
22,263
    
$
32,421
    
$
17,159
    
$
14,027
    
$
6,420
    
$
340,851
    
$
35,737
    
$
488,440
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
69
    
$
98
    
$
53
    
$
12
    
$
-
    
$
-
    
$
232
  
   
September 30, 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
  
$
192
    
$
3,199
    
$
2,431
    
$
2,232
    
$
1,133
    
$
2,414
    
$
232,975
    
$
7,290
    
$
251,866
  
Special mention
    
-
      
-
      
-
      
33
      
-
      
-
      
-
      
43
      
76
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
16
      
-
      
16
  
Total Agricultural
  
$
192
    
$
3,199
    
$
2,431
    
$
2,265
    
$
1,133
    
$
2,414
    
$
232,991
    
$
7,333
    
$
251,958
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
200
    
$
34
    
$
-
    
$
-
    
$
-
    
$
234
  
                                                                         
Commercial leases
                                                                        
Pass
  
$
7,614
    
$
30,148
    
$
69,867
    
$
22,649
    
$
6,297
    
$
22,549
    
$
-
    
$
-
    
$
159,124
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial leases
  
$
7,614
    
$
30,148
    
$
69,867
    
$
22,649
    
$
6,297
    
$
22,549
    
$
-
    
$
-
    
$
159,124
  
Commercial leases
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Consumer and other
                                                                        
Pass
  
$
1,076
    
$
561
    
$
694
    
$
295
    
$
33
    
$
1,115
    
$
767
    
$
-
    
$
4,541
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
174
      
-
      
-
      
-
      
-
      
12
      
-
      
-
      
186
  
Total Consumer and other
  
$
1,250
    
$
561
    
$
694
    
$
295
    
$
33
    
$
1,127
    
$
767
    
$
-
    
$
4,727
  
Consumer and other
                                                                        
Current-period gross charge-offs
  
$
31
    
$
3
    
$
-
    
$
-
    
$
-
    
$
10
    
$
-
    
$
-
    
$
44
  
Total net loans and leases
                                                                        
Pass
  
$
230,458
    
$
152,339
    
$
290,550
    
$
315,413
    
$
334,629
    
$
720,161
    
$
1,306,883
    
$
229,913
    
$
3,580,346
  
Special mention
    
3,381
      
-
      
-
      
80
      
7,248
      
3,151
      
8,183
      
4,391
      
26,434
  
Substandard
    
174
      
-
      
-
      
955
      
17
      
68
      
352
      
-
      
1,566
  
Total net loans and leases
  
$
234,013
    
$
152,339
    
$
290,550
    
$
316,448
    
$
341,894
    
$
723,380
    
$
1,315,418
    
$
234,304
    
$
3,608,346
  
Total current-period gross charge-offs
  
$
31
    
$
3
    
$
249
    
$
1,412
    
$
87
    
$
22
    
$
-
    
$
-
    
$
1,804
  
   
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:

(Dollars in thousands)
  
September 30,
2025
    
December 31,
2024
  
             
Balance at beginning of the period
  
$
15,626
    
$
17,035
  
New loans or advances during year
    
495
      
1,871
  
Effect of changes in composition of related parties
    
(80
)
    
-
  
Repayments
    
(2,624
)
    
(3,280
)
Balance at end of period
  
$
13,417
    
$
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 September 30, 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 September 30,
  
   
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
  
$
76,169
    
$
2,800
    
$
78,969
    
$
75,032
    
$
3,690
    
$
78,722
  
Provision for/(reversal of) credit losses
    
700
      
-
      
700
      
1,000
      
(1,000
)
    
-
  
Charge-offs
    
(962
)
    
-
      
(962
)
    
(255
)
    
-
      
(255
)
Recoveries
    
56
      
-
      
56
      
39
      
-
      
39
  
Net (charge-offs)/recoveries
    
(906
)
    
-
      
(906
)
    
(216
)
    
-
      
(216
)
Balance at end of period
  
$
75,963
    
$
2,800
    
$
78,763
    
$
75,816
    
$
2,690
    
$
78,506
  

   
For the Nine Months Ended September 30,
  
   
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/(reversal of) credit losses
    
2,290
      
110
      
2,400
      
1,000
      
(1,000
)
    
-
  
Charge-offs
    
(1,804
)
    
-
      
(1,804
)
    
(281
)
    
-
      
(281
)
Recoveries
    
194
      
-
      
194
      
132
      
-
      
132
  
Net (charge-offs)/recoveries
    
(1,610
)
    
-
      
(1,610
)
    
(149
)
    
-
      
(149
)
Balance at end of period
  
$
75,963
    
$
2,800
    
$
78,763
    
$
75,816
    
$
2,690
    
$
78,506
  

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

   
For the Three Months Ended September 30, 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
  
$
20,946
    
$
568
    
$
-
    
$
-
    
$
21,514
  
Agricultural
    
24,469
      
812
      
(939
)
    
5
      
24,347
  
Residential and home equity
    
7,599
      
(126
)
    
-
      
-
      
7,473
  
Construction
    
2,766
      
54
      
-
      
-
      
2,820
  
Total real estate
    
55,780
      
1,308
      
(939
)
    
5
      
56,154
  
Commercial & industrial
    
7,326
      
30
      
-
      
19
      
7,375
  
Agricultural
    
6,982
      
(375
)
    
-
      
24
      
6,631
  
Commercial leases
    
5,858
      
(275
)
    
-
      
-
      
5,583
  
Consumer and other
    
223
      
12
      
(23
)
    
8
      
220
  
Total allowance for credit losses
  
$
76,169
    
$
700
    
$
(962
)
  
$
56
    
$
75,963
  
   
For the Three Months Ended September 30, 2024
  
(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
  
$
22,608
    
$
(1,570
)
  
$
-
    
$
-
    
$
21,038
  
Agricultural
    
16,486
      
6,932
      
-
      
-
      
23,418
  
Residential and home equity
    
7,584
      
(593
)
    
(29
)
    
5
      
6,967
  
Construction
    
2,165
      
1,308
      
-
      
-
      
3,473
  
Total real estate
    
48,843
      
6,077
      
(29
)
    
5
      
54,896
  
Commercial & industrial
    
10,972
      
(2,996
)
    
(200
)
    
15
      
7,791
  
Agricultural
    
6,908
      
8
      
-
      
13
      
6,929
  
Commercial leases
    
7,597
      
(1,628
)
    
-
      
-
      
5,969
  
Consumer and other
    
712
      
(461
)
    
(26
)
    
6
      
231
  
Total allowance for credit losses
  
$
75,032
    
$
1,000
    
$
(255
)
  
$
39
    
$
75,816
  

   
For the Nine Months Ended September 30, 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
    
$
1,307
    
$
(175
)
  
$
-
    
$
21,514
  
Agricultural
    
23,615
      
1,846
      
(1,119
)
    
5
      
24,347
  
Residential and home equity
    
7,340
      
127
      
-
      
6
      
7,473
  
Construction
    
3,055
      
(235
)
    
-
      
-
      
2,820
  
Total real estate
    
54,392
      
3,045
      
(1,294
)
    
11
      
56,154
  
Commercial & industrial
    
7,791
      
(326
)
    
(232
)
    
142
      
7,375
  
Agricultural
    
6,725
      
116
      
(234
)
    
24
      
6,631
  
Commercial leases
    
6,153
      
(570
)
    
-
      
-
      
5,583
  
Consumer and other
    
222
      
25
      
(44
)
    
17
      
220
  
Total allowance for credit losses
  
$
75,283
    
$
2,290
    
$
(1,804
)
  
$
194
    
$
75,963
  

   
For the Nine Months Ended September 30, 2024
  
(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
  
$
26,093
    
$
(5,055
)
  
$
-
    
$
-
    
$
21,038
  
Agricultural
    
7,744
      
15,674
      
-
      
-
      
23,418
  
Residential and home equity
    
7,770
      
(793
)
    
(29
)
    
19
      
6,967
  
Construction
    
4,432
      
(959
)
    
-
      
-
      
3,473
  
Total real estate
    
46,039
      
8,867
      
(29
)
    
19
      
54,896
  
Commercial & industrial
    
13,380
      
(5,440
)
    
(200
)
    
51
      
7,791
  
Agricultural
    
8,872
      
(1,959
)
    
-
      
16
      
6,929
  
Commercial leases
    
6,537
      
(568
)
    
-
      
-
      
5,969
  
Consumer and other
    
137
      
100
      
(52
)
    
46
      
231
  
Total allowance for credit losses
  
$
74,965
    
$
1,000
    
$
(281
)
  
$
132
    
$
75,816