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Loans and Leases
 3 Months Ended
Mar. 31, 2026
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,
2026
    
December 31,
2025
  
Loans and leases held for investment, net
            
Real estate:
            
Commercial
  
$
1,504,452
    
$
1,480,906
  
Agricultural
    
689,981
      
705,668
  
Residential and home equity
    
403,777
      
405,080
  
Construction
    
132,487
      
128,179
  
Total real estate
    
2,730,697
      
2,719,833
  
Commercial & industrial
    
462,196
      
497,700
  
Agricultural
    
261,279
      
264,117
  
Commercial leases
    
175,744
      
181,004
  
Consumer and other
    
4,640
      
4,671
  
Total gross loans and leases
    
3,634,556
      
3,667,325
  
Unearned income
    
(17,685
)
    
(18,380
)
Total net loans and leases
    
3,616,871
      
3,648,945
  
Allowance for credit losses
    
(76,918
)
    
(76,375
)
Total loans and leases held for investment, net
  
$
3,539,953
    
$
3,572,570
  

At March 31, 2026, 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 $932.4 million from FHLB and $1.1 billion from the FRB at March 31, 2026.

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, 2026
  
(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
  
$
-
    
$
-
    
$
730
    
$
730
    
$
1,495,765
    
$
1,496,495
    
$
730
  
Agricultural
    
-
      
3,266
      
-
      
3,266
      
686,715
      
689,981
      
-
  
Residential and home equity
    
-
      
-
      
-
      
-
      
403,777
      
403,777
      
-
  
Construction
    
-
      
-
      
-
      
-
      
132,487
      
132,487
      
-
  
Total real estate
    
-
      
3,266
      
730
      
3,996
      
2,718,744
      
2,722,740
      
730
  
Commercial & industrial
    
-
      
-
      
-
      
-
      
462,196
      
462,196
      
-
  
Agricultural
    
-
      
-
      
-
      
-
      
261,279
      
261,279
      
-
  
Commercial leases
    
-
      
-
      
-
      
-
      
166,016
      
166,016
      
-
  
Consumer and other
    
10
      
-
      
-
      
10
      
4,630
      
4,640
      
-
  
Total loans and leases, net
  
$
10
    
$
3,266
    
$
730
    
$
4,006
    
$
3,612,865
    
$
3,616,871
    
$
730
  
   
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
  

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 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, 2026
        
   
Amortized cost associated with the following modification types:
  
(Dollars in thousands)
  
Maturity or term
extension
    
Payment
reduction
    
Multiple
modification types1
    
Total2
    
Percentage
of total loan
segment
  
Loans and leases held for investment, net
                              
Real estate:
                              
Commercial
  
$
-
    
$
730
    
$
-
    
$
730
      
0.05
%
Agricultural
    
-
      
-
      
-
      
-
      
0.00
%
Residential and home equity
    
-
      
-
      
37
      
37
      
0.01
%
Construction
    
-
      
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
730
      
37
      
767
      
0.03
%
Commercial & industrial
    
4,170
      
-
      
-
      
4,170
      
0.90
%
Agricultural
    
-
      
-
      
-
      
-
      
0.00
%
Commercial leases
    
-
      
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
-
      
0.00
%
Total
  
$
4,170
    
$
730
    
$
37
    
$
4,937
      
0.14
%

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, 2026.

During the three months ended March 31, 2026, the Company modified one commercial real estate loan with a monthly payment reduction, two commercial and industrial loans with contractual term extensions of four and three months and one residential loan with an interest rate reduction and a contractual term extension of ten years.

   
March 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
    
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 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 12 months that had a payment default and was past due during the three months ended March 31, 2026.

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, 2026
  
   
Term Loans Amortized Cost Basis by Origination Year
                          
(Dollars in thousands)
  
2026
    
2025
    
2024
    
2023
    
2022
    
Prior
    
Revolving
Loans
Amortized
Cost
    
Revolving
Loans
Converted
to Term
    
Total
  
Net loans and leases held for investment
                                                      
Real estate:
                                                      
Commercial
                                                      
Pass
  
$
28,119
    
$
211,127
    
$
37,793
    
$
100,013
    
$
134,184
    
$
532,706
    
$
308,217
    
$
143,381
    
$
1,495,540
  
Special mention
    
-
      
225
      
-
      
-
      
-
      
-
      
-
      
-
      
225
  
Substandard
    
-
      
-
      
-
      
-
      
730
      
-
      
-
      
-
      
730
  
Total Commercial
  
$
28,119
    
$
211,352
    
$
37,793
    
$
100,013
    
$
134,914
    
$
532,706
    
$
308,217
    
$
143,381
    
$
1,496,495
  
Commercial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
                                                                        
Agricultural
                                                                        
Pass
  
$
897
    
$
45,684
    
$
23,762
    
$
33,334
    
$
61,256
    
$
192,470
    
$
272,571
    
$
49,622
    
$
679,596
  
Special mention
    
-
      
3,143
      
-
      
-
      
-
      
3,029
      
4,213
      
-
      
10,385
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
897
    
$
48,827
    
$
23,762
    
$
33,334
    
$
61,256
    
$
195,499
    
$
276,784
    
$
49,622
    
$
689,981
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
                                                                        
Residential and home equity
                                                                        
Pass
  
$
7,946
    
$
35,369
    
$
27,823
    
$
29,445
    
$
50,307
    
$
200,024
    
$
52,089
    
$
344
    
$
403,347
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
25
      
-
      
-
      
25
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
203
      
202
      
-
      
405
  
Total Residential and home equity
  
$
7,946
    
$
35,369
    
$
27,823
    
$
29,445
    
$
50,307
    
$
200,252
    
$
52,291
    
$
344
    
$
403,777
  
Residential and home equity
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
                                                                        
Construction
                                                                        
Pass
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
117,212
    
$
13,900
    
$
132,487
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
117,212
    
$
13,900
    
$
132,487
  
Construction
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Total Real estate
  
$
36,962
    
$
295,548
    
$
89,378
    
$
162,792
    
$
246,477
    
$
929,832
    
$
754,504
    
$
207,247
    
$
2,722,740
  
 
                                                                        
Commercial & industrial
                                                                        
Pass
  
$
1,691
    
$
38,518
    
$
16,266
    
$
27,974
    
$
15,494
    
$
17,236
    
$
312,178
    
$
28,588
    
$
457,945
  
Special mention
    
-
      
-
      
-
      
-
      
33
      
-
      
48
      
4,170
      
4,251
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial & industrial
  
$
1,691
    
$
38,518
    
$
16,266
    
$
27,974
    
$
15,527
    
$
17,236
    
$
312,226
    
$
32,758
    
$
462,196
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
   
March 31, 2026
  
   
Term Loans Amortized Cost Basis by Origination Year
                          
(Dollars in thousands)
  
2026
    
2025
    
2024
    
2023
    
2022
    
Prior
    
Revolving
Loans
Amortized
Cost
    
Revolving
Loans
Converted
to Term
    
Total
  
Net loans and leases held for investment
                                                      
Agricultural
                                                      
Pass
  
$
-
    
$
301
    
$
2,688
    
$
2,178
    
$
1,621
    
$
2,947
    
$
241,017
    
$
10,457
    
$
261,209
  
Special mention
    
-
      
-
      
-
      
-
      
27
      
-
      
-
      
43
      
70
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
-
    
$
301
    
$
2,688
    
$
2,178
    
$
1,648
    
$
2,947
    
$
241,017
    
$
10,500
    
$
261,279
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
                                                                        
Commercial leases
                                                                        
Pass
  
$
637
    
$
24,854
    
$
28,241
    
$
65,506
    
$
20,832
    
$
25,946
    
$
-
    
$
-
    
$
166,016
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial leases
  
$
637
    
$
24,854
    
$
28,241
    
$
65,506
    
$
20,832
    
$
25,946
    
$
-
    
$
-
    
$
166,016
  
Commercial leases
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
                                                                        
Consumer and other
                                                                        
Pass
  
$
515
    
$
1,178
    
$
365
    
$
485
    
$
211
    
$
935
    
$
769
    
$
-
    
$
4,458
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
173
      
-
      
-
      
-
      
-
      
9
      
-
      
-
      
182
  
Total Consumer and other
  
$
688
    
$
1,178
    
$
365
    
$
485
    
$
211
    
$
944
    
$
769
    
$
-
    
$
4,640
  
Consumer and other
                                                                        
Current-period gross charge-offs
  
$
8
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
8
  
Total net loans and leases
                                                                        
Pass
  
$
39,805
    
$
357,031
    
$
136,938
    
$
258,935
    
$
283,905
    
$
973,639
    
$
1,304,053
    
$
246,292
    
$
3,600,598
  
Special mention
    
-
      
3,368
      
-
      
-
      
60
      
3,054
      
4,261
      
4,213
      
14,956
  
Substandard
    
173
      
-
      
-
      
-
      
730
      
212
      
202
      
-
      
1,317
  
Total net loans and leases
  
$
39,978
    
$
360,399
    
$
136,938
    
$
258,935
    
$
284,695
    
$
976,905
    
$
1,308,516
    
$
250,505
    
$
3,616,871
  
Total current-period gross charge-offs
  
$
8
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
8
  
   
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
  
    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
                                                      
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
  
                                                                         
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
  

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)
  
2026
    
2025
  
             
Balance at beginning of the period
  
$
13,300
    
$
15,626
  
New loans or advances during year
    
385
      
495
  
Effect of changes in composition of related parties
    
-
      
(80
)
Repayments
    
(15
)
    
(2,741
)
Balance at end of period
  
$
13,670
    
$
13,300
  
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:

 
  
March 31, 2026
  
(Dollars in thousands)
  
Real Estate
    
Total
  
Collateral dependent loans and leases
            
Real estate:
            
Commercial
  
$
730
    
$
730
  
Agricultural
    
-
      
-
  
Residential and home equity
    
-
      
-
  
Construction
    
-
      
-
  
Total real estate
    
730
      
730
  
Commercial & industrial
    
-
      
-
  
Agricultural
    
-
      
-
  
Commercial leases
    
-
      
-
  
Consumer and other
    
-
      
-
  
Total gross loans and leases
  
$
730
    
$
730
  

 
  
December 31, 2025
  
(Dollars in thousands)
  
Real Estate
    
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
  
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 present a summary of the activity in the ACL for loan and lease losses and the ACL for unfunded loan commitments for the periods indicated:

   
For the Three Months Ended March 31,
  
   
2026
    
2025
  
(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
  
$
76,375
    
$
3,300
    
$
79,675
    
$
75,283
    
$
2,690
    
$
77,973
  
Provision for credit losses
    
500
      
-
      
500
      
300
      
-
      
300
  
Charge-offs
    
(8
)
    
-
      
(8
)
    
(273
)
    
-
      
(273
)
Recoveries
    
51
      
-
      
51
      
113
      
-
      
113
  
Net recoveries/(charge-offs)
    
43
      
-
      
43
      
(160
)
    
-
      
(160
)
Balance at end of period
  
$
76,918
    
$
3,300
    
$
80,218
    
$
75,423
    
$
2,690
    
$
78,113
  

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

   
Three Months Ended March 31, 2026
  
(Dollars in thousands)
  
Balance at
beginning of
year
    
Provision
for/(recapture
of) credit losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of period
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
22,574
    
$
(639
)
  
$
-
    
$
-
    
$
21,935
  
Agricultural
    
23,647
      
(1,166
)
    
-
      
-
      
22,481
  
Residential and home equity
    
7,620
      
(164
)
    
-
      
24
      
7,480
  
Construction
    
2,311
      
535
      
-
      
-
      
2,846
  
Total real estate
    
56,152
      
(1,434
)
    
-
      
24
      
54,742
  
Commercial & industrial
    
7,355
      
1,733
      
-
      
12
      
9,100
  
Agricultural
    
6,760
      
412
      
-
      
1
      
7,173
  
Commercial leases
    
5,861
      
(179
)
    
-
      
-
      
5,682
  
Consumer and other
    
247
      
(32
)
    
(8
)
    
14
      
221
  
Total allowance for credit losses
  
$
76,375
    
$
500
    
$
(8
)
  
$
51
    
$
76,918
  
   
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