Commercial real estate mortgage loans: Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business.

Commercial and industrial: Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory and accounts receivable of the borrower and repayment is primarily dependent on business cash flows.

Residential real estate mortgage loans: Residential real estate mortgage consists primarily of loans secured by 1-4 family residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower.

Agricultural real estate loans: Agricultural real estate loans are secured by real estate related to farmland and are affected by the value of farmland. Generally, the borrower’s ability to repay is based on the value of farmland and cash flows from farming operations.

Agricultural production loans: Agricultural production loans are primarily operating lines subject to annual farming revenues, including productivity and yield of farm products and market pricing at the time of sale.

Consumer: Consumer loans include all loans issued to individuals not included in the categories above. Examples of consumer and other loans are automobile loans, consumer credit cards and loans to finance education, among others. Many consumer loans are unsecured. Repayment is primarily dependent on the personal cash flow of the borrower.

From time to time the Company has purchased pools of residential real estate loans originated by other financial institutions to hold for investment with the intent to diversify the residential real estate portfolio. During 2024 and 2023 the Company did not purchase any pools of residential loans. As of December 31, 2024, and 2023, residential real estate loans include $274,922 and $299,448 of purchased residential real estate loans.

The Company occasionally purchases the government guaranteed portion of loans originated by other financial institutions to hold for investment. During 2024 and 2023, the Company purchased $49,086 and $1,235 in loans guaranteed by governmental agencies.

The unamortized discount of merger purchase accounting adjustments related to non-purchase credit deteriorated loans included in the loan totals above are $4,659 and $2,424 with related loans of $252,309 and $209,662 at December 31, 2024, and 2023.

Overdraft deposit accounts are reclassified and included in consumer loans above. These accounts totaled $329 and $387 at December 31, 2024, and 2023.

The Company estimates the allowance for credit losses under CECL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Internal historical loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency levels or loan terms, as well as, for changes in environmental conditions, such as changes in unemployment rates, property values, consumer price index, gross domestic product, housing starts or relevant index, U.S. personal income, U.S. housing price indices, federal funds target and various U.S. Government interest rates.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified commercial real estate, commercial and industrial, residential real estate, agricultural real estate, agricultural production and consumer as portfolio segments and measures the allowance for credit losses using a historical loss rate method for each segment to estimate credit losses on a collective basis. The Company’s CECL calculation utilizes historical loss rates, average default month, average prepayment rates and exposure at default as assumptions to calculate an unadjusted historical loss estimate for the contractual term of the loans adjusted for prepayment. The historical loss estimate is then adjusted for the anticipated changes in the Company’s historical loss rate using a regression analysis and current economic variables over the next 12 months. The Company has selected 12 months as its reasonable and supportable forecast period and has selected an immediate reversion back to unadjusted historical loss rates for periods beyond the reasonable and supportable forecast period. The calculated historical loss estimate and the economic qualitative adjustment are further evaluated for change via a management qualitative adjustment factor. Management qualitative adjustments typically are anticipated changes in loss trends that are not reflected in the historical data to be used in forecasting.

The Company evaluates all loans that do not share risk characteristics on an individual basis for estimating the allowance for credit loss. Loans evaluated on an individual basis are not included in the collective basis. The Company currently reviews all loans that are classified as non-accrual on an individual basis. The Company typically elects the collateral-dependent practical expedient on all loans individually assessed for credit losses and expected credit losses are based on the fair value of the collateral at the reporting date adjusted for selling costs as appropriate.

The Company’s ACL is highly dependent on credit quality, macroeconomic forecasts and conditions, the composition of our loan portfolio and other management judgments. The current management adjustment represents a significant portion of the Company’s ACL and is comprised of the estimated impact to ACL from the impact of inflation and the associated monetary policy response and the impact of global market disruption.


December 31, 2023	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Agricultural Real Estate			Agricultural			Consumer			Total
Allowance for credit losses:
Beginning balance	$	16,731		$	14,951		$	8,608		$	819		$	2,457		$	2,281		$	45,847
Provision (reversal) for credit losses		(3,330	)		6,703			(806	)		945			(1,509	)		(130	)		1,873
Loans charged-off		(20	)		(3,791	)		(80	)		(54	)		(108	)		(901	)		(4,954	)
Recoveries		95			91			62			8			155			343			754
Total ending allowance balance	$	13,476		$	17,954		$	7,784		$	1,718		$	995		$	1,593		$	43,520


December 31, 2022	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Agricultural Real Estate			Agricultural			Consumer			Total
Allowance for loan losses:
Beginning balance	$	22,478		$	12,248		$	5,560		$	2,235		$	3,756		$	2,088		$	48,365
Provision (reversal) for credit losses		(4,554	)		3,293			3,104			(1,389	)		(1,264	)		935			125
Loans charged-off		(1,297	)		(857	)		(99	)		(35	)		(46	)		(1,009	)		(3,343	)
Recoveries		104			267			43			8			11			267			700
Total ending allowance balance	$	16,731		$	14,951		$	8,608		$	819		$	2,457		$	2,281		$	45,847

The following tables present the recorded investment in loans and the balance in the allowance for credit losses by portfolio and class based on impairment method as of December 31, 2024, and 2023.


December 31, 2024	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Agricultural Real Estate		Agricultural		Consumer		Total
Allowance for credit losses:
Individually evaluated for credit losses	$	1,053	$	1,618	$	1,167	$	701	$	147	$	201	$	4,887
Collectively evaluated for credit losses		13,895		12,387		7,386		2,803		292		1,617		38,380
Total	$	14,948	$	14,005	$	8,553	$	3,504	$	439	$	1,818	$	43,267
Loan Balance:
Individually evaluated for credit losses	$	7,854	$	8,593	$	4,996	$	5,839	$	1,740	$	871	$	29,893
Collectively evaluated for credit losses		1,822,660		650,272		561,770		261,409		85,599		89,213		3,470,923
Total	$	1,830,514	$	658,865	$	566,766	$	267,248	$	87,339	$	90,084	$	3,500,816


December 31, 2023	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Agricultural Real Estate		Agricultural		Consumer		Total
Allowance for credit losses:
Individually evaluated for credit losses	$	582	$	1,644	$	1,113	$	674	$	598	$	154	$	4,765
Collectively evaluated for credit losses		12,894		16,310		6,671		1,044		397		1,439		38,755
Total	$	13,476	$	17,954	$	7,784	$	1,718	$	995	$	1,593	$	43,520
Loan Balance:
Individually evaluated for credit losses	$	6,031	$	5,498	$	7,495	$	4,672	$	3,598	$	669	$	27,963
Collectively evaluated for credit losses		1,753,824		592,829		548,833		191,442		114,989		103,021		3,304,938
Total	$	1,759,855	$	598,327	$	556,328	$	196,114	$	118,587	$	103,690	$	3,332,901

The following table presents information related to non-accrual loans at December 31, 2024.


December 31, 2024	Unpaid Principal Balance		Recorded Investment		Allowance for Credit Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate	$	3,068	$	3,068	$	—	$	3,542	$	104
Commercial and industrial		—		—		—		398		—
Residential real estate		19		—		—		—		1
Agricultural real estate		2,490		2,014		—		2,009		140
Agricultural		—		—		—		109		—
Consumer		31		—		—		—		—
Subtotal		5,608		5,082		—		6,058		245
With an allowance recorded:
Commercial real estate		4,719		4,390		1,015		3,382		105
Commercial and industrial		12,424		7,798		1,482		6,760		164
Residential real estate		5,260		4,670		1,145		5,011		40
Agricultural real estate		5,594		3,737		697		3,520		10
Agricultural		953		592		73		1,390		6
Consumer		846		781		187		706		22
Subtotal		29,796		21,968		4,599		20,769		347
Total	$	35,404	$	27,050	$	4,599	$	26,827	$	592

The above table presents interest income for the twelve months ended December 31, 2024. Interest income recognized in the above table was substantially recognized on the cash basis. The recorded investment in loans excludes accrued interest receivable due to immateriality.

The following table presents information related to non-accrual loans at December 31, 2023.


December 31, 2023	Unpaid Principal Balance		Recorded Investment		Allowance for Credit Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate	$	3,948	$	3,376	$	—	$	2,117	$	53
Commercial and industrial		2,925		—		—		251		1
Residential real estate		21		—		—		5		1
Agricultural real estate		1,342		948		—		939		—
Agricultural		2,303		—		—		—		3
Consumer		23		—		—		—		1
Subtotal		10,562		4,324		—		3,312		59
With an allowance recorded:
Commercial real estate		2,297		2,071		455		1,214		37
Commercial and industrial		8,452		5,041		1,335		5,059		249
Residential real estate		7,605		7,251		1,086		3,912		156
Agricultural real estate		4,753		3,266		660		1,950		1
Agricultural		2,946		2,470		481		2,791		1
Consumer		689		603		150		477		17
Subtotal		26,742		20,702		4,167		15,403		461
Total	$	37,304	$	25,026	$	4,167	$	18,715	$	520

The above table presents interest income for the twelve months ended December 31, 2023. Interest income recognized in the above table was substantially recognized on the cash basis. The recorded investment in loans excludes accrued interest receivable due to immateriality.

The following tables present the aging of the recorded investment in past due loans as of December 31, 2024 and 2023, by portfolio and class of loans.


December 31, 2024	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days Past Due Still On Accrual		Non-accrual		Loans Not Past Due		Total
Commercial real estate	$	3,502	$	2,030	$	156	$	7,458	$	1,817,368	$	1,830,514
Commercial and industrial		1,314		644		25		7,798		649,084		658,865
Residential real estate		2,396		634		—		4,670		559,066		566,766
Agricultural real estate		457		312		—		5,751		260,728		267,248
Agricultural		411		80		—		592		86,256		87,339
Consumer		666		196		—		781		88,441		90,084
Total	$	8,746	$	3,896	$	181	$	27,050	$	3,460,943	$	3,500,816


December 31, 2023	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days Past Due Still On Accrual		Non-accrual		Loans Not Past Due		Total
Commercial real estate	$	2,397	$	198	$	189	$	5,447	$	1,751,624	$	1,759,855
Commercial and industrial		1,853		2,713		71		5,041		588,649		598,327
Residential real estate		1,444		676		—		7,251		546,957		556,328
Agricultural real estate		949		—		—		4,214		190,951		196,114
Agricultural		559		65		19		2,470		115,474		118,587
Consumer		443		118		—		603		102,526		103,690
Total	$	7,645	$	3,770	$	279	$	25,026	$	3,296,181	$	3,332,901

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit loss expense recognized within other non-interest expense on the consolidated statements of income and included in other liabilities on the consolidated balance sheets. The estimated credit loss includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate of expected credit loss is based on the historical loss rate for the class of loan the commitments would be classified as if funded.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. Consumer loans are considered unclassified credits unless downgraded due to payment status or reviewed as part of a larger credit relationship. The Company uses the following definitions for risk ratings:

Pass: Loans classified as pass include all loans that do not fall under one of the three following categories. These loans are considered unclassified.

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. These loans are considered classified.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. These loans are considered classified.

Doubtful: Loans 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, on the basis of currently existing facts, conditions and values, highly questionable and improbable. These loans are considered classified.

Based on the most recent analysis performed, the risk category of loans by type and year of origination, at December 31, 2024, is as follows.


December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
Commercial real estate
Risk rating
Pass	$	332,078	$	191,947	$	337,048	$	162,180	$	148,732	$	166,614	$	474,324	$	855	$	1,813,778
Special Mention		331		—		103		—		—		378		497		—		1,309
Substandard		795		459		3,693		3,499		365		6,277		339		—		15,427
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial real estate	$	333,204	$	192,406	$	340,844	$	165,679	$	149,097	$	173,269	$	475,160	$	855	$	1,830,514
Commercial and industrial
Risk rating
Pass	$	114,421	$	78,335	$	69,294	$	32,227	$	53,119	$	16,902	$	261,227	$	994	$	626,519
Special Mention		121		—		160		18		—		870		131		—		1,300
Substandard		8,256		8,189		315		274		1,113		1,592		10,563		667		30,969
Doubtful		—		—		—		—		—		77		—		—		77
Total commercial and industrial	$	122,798	$	86,524	$	69,769	$	32,519	$	54,232	$	19,441	$	271,921	$	1,661	$	658,865
Residential real estate
Risk rating
Pass	$	25,981	$	33,933	$	35,687	$	260,180	$	7,622	$	130,242	$	66,981	$	572	$	561,198
Special Mention		—		—		—		—		—		300		72		—		372
Substandard		—		195		253		403		123		3,370		807		45		5,196
Doubtful		—		—		—		—		—		—		—		—		—
Total residential real estate	$	25,981	$	34,128	$	35,940	$	260,583	$	7,745	$	133,912	$	67,860	$	617	$	566,766
Agricultural real estate
Risk rating
Pass	$	52,369	$	16,936	$	24,551	$	11,468	$	20,508	$	36,834	$	95,410	$	277	$	258,353
Special Mention		1,541		—		151		—		—		138		595		—		2,425
Substandard		—		2,054		56		571		76		3,659		54		—		6,470
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural real estate	$	53,910	$	18,990	$	24,758	$	12,039	$	20,584	$	40,631	$	96,059	$	277	$	267,248
Agricultural
Risk rating
Pass	$	15,428	$	4,045	$	5,364	$	2,576	$	3,674	$	1,308	$	53,757	$	49	$	86,201
Special Mention		—		—		—		—		—		32		—		—		32
Substandard		45		185		19		274		404		36		143		—		1,106
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural	$	15,473	$	4,230	$	5,383	$	2,850	$	4,078	$	1,376	$	53,900	$	49	$	87,339
Consumer
Risk rating
Pass	$	35,412	$	17,503	$	14,157	$	5,765	$	2,732	$	2,724	$	11,007	$	—	$	89,300
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		13		234		289		170		43		35		—		—		784
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer	$	35,425	$	17,737	$	14,446	$	5,935	$	2,775	$	2,759	$	11,007	$	—	$	90,084
Total loans
Risk rating
Pass	$	575,689	$	342,699	$	486,101	$	474,396	$	236,387	$	354,624	$	962,706	$	2,747	$	3,435,349
Special Mention		1,993		—		414		18		—		1,718		1,295		—		5,438
Substandard		9,109		11,316		4,625		5,191		2,124		14,969		11,906		712		59,952
Doubtful		—		—		—		—		—		77		—		—		77
Total loans	$	586,791	$	354,015	$	491,140	$	479,605	$	238,511	$	371,388	$	975,907	$	3,459	$	3,500,816

The risk category of loans by type and year of origination, at December 31, 2023, is as follows.


December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
Commercial real estate
Risk rating
Pass	$	212,229	$	379,233	$	253,837	$	179,935	$	75,472	$	186,073	$	461,346	$	753	$	1,748,878
Special Mention		257		—		119		—		—		399		—		—		775
Substandard		84		2,501		3,481		256		1,463		2,336		81		—		10,202
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial real estate	$	212,570	$	381,734	$	257,437	$	180,191	$	76,935	$	188,808	$	461,427	$	753	$	1,759,855
Commercial and industrial
Risk rating
Pass	$	128,598	$	110,817	$	54,416	$	49,557	$	29,931	$	7,293	$	204,237	$	1,780	$	586,629
Special Mention		—		—		15		—		—		992		—		—		1,007
Substandard		1,317		468		230		2,922		237		2,171		3,346		—		10,691
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	129,915	$	111,285	$	54,661	$	52,479	$	30,168	$	10,456	$	207,583	$	1,780	$	598,327
Residential real estate
Risk rating
Pass	$	35,040	$	29,766	$	277,611	$	5,183	$	12,506	$	130,144	$	57,699	$	1,065	$	549,014
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		213		187		22		156		1,960		4,710		66		7,314
Doubtful		—		—		—		—		—		—		—		—		—
Total residential real estate	$	35,040	$	29,979	$	277,798	$	5,205	$	12,662	$	132,104	$	62,409	$	1,131	$	556,328
Agricultural real estate
Risk rating
Pass	$	22,368	$	26,762	$	17,987	$	18,551	$	10,653	$	20,039	$	74,010	$	289	$	190,659
Special Mention		903		158		—		—		—		164		605		—		1,830
Substandard		40		—		24		—		101		3,423		37		—		3,625
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural real estate	$	23,311	$	26,920	$	18,011	$	18,551	$	10,754	$	23,626	$	74,652	$	289	$	196,114
Agricultural
Risk rating
Pass	$	12,424	$	7,363	$	4,815	$	7,148	$	1,385	$	3,809	$	78,285	$	55	$	115,284
Special Mention		—		—		—		—		—		33		9		—		42
Substandard		39		10		464		629		1,861		52		206		—		3,261
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural	$	12,463	$	7,373	$	5,279	$	7,777	$	3,246	$	3,894	$	78,500	$	55	$	118,587
Consumer
Risk rating
Pass	$	47,019	$	24,620	$	10,384	$	4,841	$	1,281	$	2,885	$	12,035	$	1	$	103,066
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		50		241		163		98		49		23		—		—		624
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer	$	47,069	$	24,861	$	10,547	$	4,939	$	1,330	$	2,908	$	12,035	$	1	$	103,690
Total loans
Risk rating
Pass	$	457,678	$	578,561	$	619,050	$	265,215	$	131,228	$	350,243	$	887,612	$	3,943	$	3,293,530
Special Mention		1,160		158		134		—		—		1,588		614		—		3,654
Substandard		1,530		3,433		4,549		3,927		3,867		9,965		8,380		66		35,717
Doubtful		—		—		—		—		—		—		—		—		—
Total loans	$	460,368	$	582,152	$	623,733	$	269,142	$	135,095	$	361,796	$	896,606	$	4,009	$	3,332,901

The following table discloses the charge-off and recovery activity by loan type and year of origination at December 31, 2024.


December 31, 2024	2024			2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost			Revolving Loans Converted to Term		Total
Commercial real estate
Gross charge-offs	$	—		$	—		$	(17	)	$	—		$	—		$	—		$	(80	)	$	—	$	(97	)
Gross recoveries		—			—			8			—			1			34			1			—		44
Net charge-offs	$	—		$	—		$	(9	)	$	—		$	1		$	34		$	(79	)	$	—	$	(53	)
Commercial and industrial
Gross charge-offs	$	—		$	(31	)	$	(360	)	$	(176	)	$	(486	)	$	(839	)	$	(1,293	)	$	—	$	(3,185	)
Gross recoveries		—			—			247			13			21			56			59			2		398
Net charge-offs	$	—		$	(31	)	$	(113	)	$	(163	)	$	(465	)	$	(783	)	$	(1,234	)	$	2	$	(2,787	)
Residential real estate
Gross charge-offs	$	—		$	—		$	(134	)	$	(2	)	$	—		$	(21	)	$	(26	)	$	—	$	(183	)
Gross recoveries		—			—			—			1			—			39			4			—		44
Net charge-offs	$	—		$	—		$	(134	)	$	(1	)	$	—		$	18		$	(22	)	$	—	$	(139	)
Agricultural real estate
Gross charge-offs	$	—		$	—		$	(11	)	$	(12	)	$	(1	)	$	(76	)	$	—		$	—	$	(100	)
Gross recoveries		4			—			10			—			—			78			—			—		92
Net charge-offs	$	4		$	—		$	(1	)	$	(12	)	$	(1	)	$	2		$	—		$	—	$	(8	)
Agricultural
Gross charge-offs	$	—		$	(2	)	$	(25	)	$	(1	)	$	—		$	—		$	—		$	—	$	(28	)
Gross recoveries		—			1			22			1			1			—			—			—		25
Net charge-offs	$	—		$	(1	)	$	(3	)	$	—		$	1		$	—		$	—		$	—	$	(3	)
Consumer
Gross charge-offs	$	(206	)	$	(105	)	$	(216	)	$	(183	)	$	(49	)	$	(191	)	$	(73	)	$	—	$	(1,023	)
Gross recoveries		8			10			19			34			10			122			11			—		214
Net charge-offs	$	(198	)	$	(95	)	$	(197	)	$	(149	)	$	(39	)	$	(69	)	$	(62	)	$	—	$	(809	)
Total loans
Gross charge-offs	$	(206	)	$	(138	)	$	(763	)	$	(374	)	$	(536	)	$	(1,127	)	$	(1,472	)	$	—	$	(4,616	)
Gross recoveries		12			11			306			49			33			329			75			2		817
Net charge-offs	$	(194	)	$	(127	)	$	(457	)	$	(325	)	$	(503	)	$	(798	)	$	(1,397	)	$	2	$	(3,799	)

The following table discloses the charge-off and recovery activity by loan type and year of origination at December 31, 2023.


December 31, 2023	2023			2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost			Revolving Loans Converted to Term		Total
Commercial real estate
Gross charge-offs	$	—		$	—		$	—		$	—		$	(11	)	$	(9	)	$	—		$	—	$	(20	)
Gross recoveries		—			63			—			—			—			32			—			—		95
Net charge-offs	$	—		$	63		$	—		$	—		$	(11	)	$	23		$	—		$	—	$	75
Commercial and industrial
Gross charge-offs	$	(10	)	$	(226	)	$	(22	)	$	(18	)	$	(2	)	$	(25	)	$	(3,488	)	$	—	$	(3,791	)
Gross recoveries		—			32			—			15			—			10			34			—		91
Net charge-offs	$	(10	)	$	(194	)	$	(22	)	$	(3	)	$	(2	)	$	(15	)	$	(3,454	)	$	—	$	(3,700	)
Residential real estate
Gross charge-offs	$	—		$	—		$	—		$	—		$	(14	)	$	(62	)	$	(4	)	$	—	$	(80	)
Gross recoveries		—			—			—			—			—			62			—			—		62
Net charge-offs	$	—		$	—		$	—		$	—		$	(14	)	$	—		$	(4	)	$	—	$	(18	)
Agricultural real estate
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	(4	)	$	(50	)	$	—	$	(54	)
Gross recoveries		—			—			—			—			—			8			—			—		8
Net charge-offs	$	—		$	—		$	—		$	—		$	—		$	4		$	(50	)	$	—	$	(46	)
Agricultural
Gross charge-offs	$	—		$	—		$	(107	)	$	—		$	—		$	(1	)	$	—		$	—	$	(108	)
Gross recoveries		—			—			—			—			—			155			—			—		155
Net charge-offs	$	—		$	—		$	(107	)	$	—		$	—		$	154		$	—		$	—	$	47
Consumer
Gross charge-offs	$	(240	)	$	(168	)	$	(120	)	$	(58	)	$	(51	)	$	(186	)	$	(78	)	$	—	$	(901	)
Gross recoveries		20			53			58			22			24			152			14			—		343
Net charge-offs	$	(220	)	$	(115	)	$	(62	)	$	(36	)	$	(27	)	$	(34	)	$	(64	)	$	—	$	(558	)
Total loans
Gross charge-offs	$	(250	)	$	(394	)	$	(249	)	$	(76	)	$	(78	)	$	(287	)	$	(3,620	)	$	—	$	(4,954	)
Gross recoveries		20			148			58			37			24			419			48			—		754
Net charge-offs	$	(230	)	$	(246	)	$	(191	)	$	(39	)	$	(54	)	$	132		$	(3,572	)	$	—	$	(4,200	)

The following table presents the amortized cost basis of loans at December 31, 2024, and 2023, that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2024 and 2023, by class and by type of modification. 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 class of financing receivable is also presented below.


December 31, 2024	Payment Delay		Term Extension		Combination Rate Change and Term Extension		Combination Payment Delay and Term Extension		Total Modifications		Total Class of Financing Receivable
Commercial real estate	$	—	$	1,515	$	—	$	9,933	$	11,448		0.63	%
Commercial and industrial		3,667		2,470		—		1,736		7,873		1.19	%
Residential real estate		—		—		—		—		—		0.00	%
Agricultural real estate		—		3,222		—		—		3,222		1.21	%
Agricultural		—		1,641		—		168		1,809		2.07	%
Consumer		—		—		—		—		—		0.00	%
Total	$	3,667	$	8,848	$	—	$	11,837	$	24,352		0.70	%

December 31, 2023	Payment Delay		Term Extension		Combination Rate Change and Term Extension		Combination Payment Delay and Term Extension		Total Modifications		Total Class of Financing Receivable
Commercial real estate	$	—	$	—	$	—	$	3,547	$	3,547		0.20	%
Commercial and industrial		—		1,433		—		11,492		12,925		2.16	%
Residential real estate		—		—		—		12		12		0.00	%
Agricultural real estate		—		858		—		1,098		1,956		1.00	%
Agricultural		122		—		—		421		543		0.46	%
Consumer		—		—		21		—		21		0.02	%
Total	$	122	$	2,291	$	21	$	16,570	$	19,004		0.57	%

At December 31, 2024, and 2023, there were $1,145 and $849 in commitments to lend additional amounts on these loans.

At modification date, the Company considers loans modified to borrowers in financial distress as loans that do not share similar risk characteristics with collectively evaluated loans at modification date for the purposes of calculating the allowance for credit losses. These loans will be evaluated for credit losses based on either discounted cash flows or the fair value of collateral at modification date; however, subsequent to the modification date these loans will be evaluated for credit losses as part of the collectively evaluated pools after a period of ongoing performance under the terms of the modified loan.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified during the twelve months ended December 31, 2024, and 2023.