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Loans and Leases
 12 Months Ended
Dec. 31, 2025
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)
  
2025
    
2024
  
Loans and leases held for investment, net
           
Real estate:
            
Commercial
  
$
1,480,906
    
$
1,360,841
  
Agricultural
    
705,668
      
751,026
  
Residential and home equity
    
405,080
      
404,399
  
Construction
    
128,179
      
194,903
  
Total real estate
    
2,719,833
      
2,711,169
  
Commercial & industrial
    
497,700
      
504,403
  
Agricultural
    
264,117
      
289,847
  
Commercial leases
    
181,004
      
179,718
  
Consumer and other
    
4,671
      
5,084
  
Total gross loans and leases
    
3,667,325
      
3,690,221
  
Unearned income
    
(18,380
)
    
(11,833
)
Total net loans and leases
    
3,648,945
      
3,678,388
  
Allowance for credit losses
    
(76,375
)
    
(75,283
)
Total loans and leases held for investment, net
  
$
3,572,570
    
$
3,603,105
  

At December 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 $1.4 billion and $1.4 billion, respectively. The borrowing capacity on these loans was $889.2 million from FHLB and $1.1 billion from the FRB at December 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:

   
December 31, 2025
  
(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
  
$
7,248
    
$
-
    
$
750
    
$
7,998
    
$
1,464,585
    
$
1,472,583
    
$
750
  
Agricultural
    
-
      
-
      
-
      
-
      
705,668
      
705,668
      
-
  
Residential and home equity
    
-
      
-
      
-
      
-
      
405,080
      
405,080
      
-
  
Construction
    
-
      
-
      
-
      
-
      
128,179
      
128,179
      
-
  
Total real estate
    
7,248
      
-
      
750
      
7,998
      
2,703,512
      
2,711,510
      
750
  
Commercial & industrial
    
-
      
-
      
-
      
-
      
497,700
      
497,700
      
-
  
Agricultural
    
-
      
-
      
-
      
-
      
264,117
      
264,117
      
-
  
Commercial leases
    
1,659
      
-
      
-
      
1,659
      
169,288
      
170,947
      
-
  
Consumer and other
    
5
      
-
      
-
      
5
      
4,666
      
4,671
      
-
  
Total loans and leases, net
  
$
8,912
    
$
-
    
$
750
    
$
9,662
    
$
3,639,283
    
$
3,648,945
    
$
750
  
   
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
  

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 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, 2025
        
   
Amortized cost associated with the following modification types:
  
(Dollars in thousands)
  
Maturity or term
extension
    
Payment
deferral
    
Multiple
modification types1
    
Total2
    
Percentage
of total loan
segment
  
Loans and leases held for investment, net
Real estate:
                              
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
      
0.00
%
Agricultural
    
-
      
-
      
2,639
      
2,639
      
0.37
%
Residential and home equity
    
88
      
-
      
-
      
88
      
0.02
%
Construction
    
-
      
-
      
-
      
-
      
0.00
%
Total real estate
    
88
      
-
      
2,639
      
2,727
      
0.10
%
Commercial & industrial
    
4,259
      
-
      
-
      
4,259
      
0.86
%
Agricultural
    
-
      
-
      
43
      
43
      
0.02
%
Commercial leases
    
-
      
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
-
      
0.00
%
Total
  
$
4,347
    
$
-
    
$
2,682
    
$
7,029
      
0.19
%

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, 2025.

During the twelve months ended December 31, 2025, the Company had one agricultural real estate borrower with five loans that had principal and interest deferrals ranging from twelve to eighteen months.  Three of the loans had the contractual term extended by eighteen months. In addition, during the twelve months ended December 31, 2025, the Company had two commercial & industrial loans where the contractual terms were extended by six and thirteen months, respectively, and two residential and home equity loans where the contractual terms were extended by ten years.
   
December 31, 2024
        
   
Amortized cost associated with the following modification types:
  
(Dollars in thousands)
  
Maturity or term extension
    
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, during the twelve months ended December 31 2024, the Company had one commercial & industrial loan where the contractual term was extended by two 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, 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 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:

   
December 31, 2025
  
   
Term Loans 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
  
$
201,486
    
$
38,557
    
$
103,052
    
$
135,472
    
$
192,814
    
$
356,496
    
$
290,112
    
$
146,371
    
$
1,464,360
  
Special mention
    
225
      
-
      
-
      
-
      
7,248
      
-
      
-
      
-
      
7,473
  
Substandard
    
-
      
-
      
-
      
750
      
-
      
-
      
-
      
-
      
750
  
Total Commercial
  
$
201,711
    
$
38,557
    
$
103,052
    
$
136,222
    
$
200,062
    
$
356,496
    
$
290,112
    
$
146,371
    
$
1,472,583
  
Commercial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
380
    
$
-
    
$
-
    
$
-
    
$
-
    
$
380
  
                                                                         
Agricultural
                                                                        
Pass
  
$
46,027
    
$
23,735
    
$
35,874
    
$
62,515
    
$
41,110
    
$
161,982
    
$
274,736
    
$
48,493
    
$
694,472
  
Special mention
    
3,151
      
-
      
-
      
-
      
-
      
3,085
      
4,960
      
-
      
11,196
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
49,178
    
$
23,735
    
$
35,874
    
$
62,515
    
$
41,110
    
$
165,067
    
$
279,696
    
$
48,493
    
$
705,668
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
180
    
$
939
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,119
  
                                                                         
Residential and home equity
                                                                        
Pass
  
$
35,670
    
$
29,212
    
$
31,874
    
$
50,922
    
$
76,178
    
$
128,370
    
$
52,266
    
$
352
    
$
404,844
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
34
      
-
      
-
      
34
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
202
      
-
      
202
  
Total Residential and home equity
  
$
35,670
    
$
29,212
    
$
31,874
    
$
50,922
    
$
76,178
    
$
128,404
    
$
52,468
    
$
352
    
$
405,080
  
Residential and home equity
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Construction
                                                                        
Pass
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
112,904
    
$
13,900
    
$
128,179
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
112,904
    
$
13,900
    
$
128,179
  
Construction
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Total Real estate
  
$
286,559
    
$
91,504
    
$
170,800
    
$
249,659
    
$
317,350
    
$
651,342
    
$
735,180
    
$
209,116
    
$
2,711,510
  
                                                                         
Commercial & industrial
                                                                        
Pass
  
$
39,666
    
$
21,289
    
$
29,692
    
$
16,244
    
$
13,167
    
$
5,310
    
$
337,525
    
$
30,455
    
$
493,348
  
Special mention
    
-
      
-
      
-
      
40
      
-
      
-
      
50
      
4,262
      
4,352
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial & industrial
  
$
39,666
    
$
21,289
    
$
29,692
    
$
16,284
    
$
13,167
    
$
5,310
    
$
337,575
    
$
34,717
    
$
497,700
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
70
    
$
98
    
$
53
    
$
12
    
$
-
    
$
-
    
$
233
  
                                                                         
Agricultural
                                                                        
Pass
  
$
3,104
    
$
2,857
    
$
2,312
    
$
1,772
    
$
1,020
    
$
2,264
    
$
245,438
    
$
5,278
    
$
264,045
  
Special mention
    
-
      
-
      
-
      
29
      
-
      
-
      
-
      
43
      
72
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
3,104
    
$
2,857
    
$
2,312
    
$
1,801
    
$
1,020
    
$
2,264
    
$
245,438
    
$
5,321
    
$
264,117
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
200
    
$
34
    
$
-
    
$
-
    
$
-
    
$
234
  
   
December 31, 2025
  
   
Term Loans 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
                                                      
Commercial leases
                                                      
Pass
  
$
25,516
    
$
29,201
    
$
67,198
    
$
21,749
    
$
5,854
    
$
21,429
    
$
-
    
$
-
    
$
170,947
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial leases
  
$
25,516
    
$
29,201
    
$
67,198
    
$
21,749
    
$
5,854
    
$
21,429
    
$
-
    
$
-
    
$
170,947
  
Commercial leases
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Consumer and other
                                                                        
Pass
  
$
1,244
    
$
478
    
$
609
    
$
234
    
$
23
    
$
1,001
    
$
879
    
$
-
    
$
4,468
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
192
      
-
      
-
      
-
      
-
      
11
      
-
      
-
      
203
  
Total Consumer and other
  
$
1,436
    
$
478
    
$
609
    
$
234
    
$
23
    
$
1,012
    
$
879
    
$
-
    
$
4,671
  
Consumer and other
                                                                        
Current-period gross charge-offs
  
$
37
    
$
3
    
$
-
    
$
-
    
$
-
    
$
10
    
$
-
    
$
-
    
$
50
  
Total net loans and leases
                                                                        
Pass
  
$
352,713
    
$
145,329
    
$
270,611
    
$
288,908
    
$
330,166
    
$
678,227
    
$
1,313,860
    
$
244,849
    
$
3,624,663
  
Special mention
    
3,376
      
-
      
-
      
69
      
7,248
      
3,119
      
5,010
      
4,305
      
23,127
  
Substandard
    
192
      
-
      
-
      
750
      
-
      
11
      
202
      
-
      
1,155
  
Total net loans and leases
  
$
356,281
    
$
145,329
    
$
270,611
    
$
289,727
    
$
337,414
    
$
681,357
    
$
1,319,072
    
$
249,154
    
$
3,648,945
  
Total current-period gross charge-offs
  
$
37
    
$
3
    
$
250
    
$
1,617
    
$
87
    
$
22
    
$
-
    
$
-
    
$
2,016
  
   
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
  

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)
  
2025
    
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
    
(2,741
)
    
(3,280
)
Balance at end of period
  
$
13,300
    
$
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 the dates indicated:

   
December 31, 2025
  
(Dollars in thousands)
  
Real Estate
    
Vehicles and
Equipment
    
Total
  
Collateral dependent loans and leases
                  
Real estate:
                  
Commercial
  
$
7,998
    
$
-
    
$
7,998
  
Agricultural
    
-
      
-
      
-
  
Residential and home equity
    
-
      
-
      
-
  
Construction
    
-
      
-
      
-
  
Total real estate
    
7,998
      
-
      
7,998
  
Commercial & industrial
    
-
      
-
      
-
  
Agricultural
    
-
      
-
      
-
  
Commercial leases
    
-
      
-
      
-
  
Consumer and other
    
-
      
-
      
-
  
Total gross loans and leases
  
$
7,998
    
$
-
    
$
7,998
  

   
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
  
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 table presents 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,
  
   
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
    
2,890
      
610
      
3,500
      
1,000
      
(1,000
)
    
-
  
Charge-offs
    
(2,016
)
    
-
      
(2,016
)
    
(858
)
    
-
      
(858
)
Recoveries
    
218
      
-
      
218
      
176
      
-
      
176
  
Net (charge-offs)/recoveries
    
(1,798
)
    
-
      
(1,798
)
    
(682
)
    
-
      
(682
)
Balance at end of period
  
$
76,375
    
$
3,300
    
$
79,675
    
$
75,283
    
$
2,690
    
$
77,973
  

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

   
Year Ended December 31, 2025
  
(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
  
$
20,382
    
$
2,572
    
$
(380
)
  
$
-
    
$
22,574
  
Agricultural
    
23,615
      
1,146
      
(1,119
)
    
5
      
23,647
  
Residential and home equity
    
7,340
      
270
      
-
      
10
      
7,620
  
Construction
    
3,055
      
(744
)
    
-
      
-
      
2,311
  
Total real estate
    
54,392
      
3,244
      
(1,499
)
    
15
      
56,152
  
Commercial & industrial
    
7,791
      
(359
)
    
(233
)
    
156
      
7,355
  
Agricultural
    
6,725
      
245
      
(234
)
    
24
      
6,760
  
Commercial leases
    
6,153
      
(292
)
    
-
      
-
      
5,861
  
Consumer and other
    
222
      
52
      
(50
)
    
23
      
247
  
Total allowance for credit losses
  
$
75,283
    
$
2,890
    
$
(2,016
)
  
$
218
    
$
76,375
  
   
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