10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________to _______________.

Commission file number 001-36434

FIRST MID BANCSHARES, INC.

(Exact name of Registrant as specified in its charter)

Delaware	37-1103704
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)

1421 Charleston Avenue
Mattoon, Illinois	61938
(Address of principal executive offices)	(Zip code)

(217) 234-7454

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	FMBH	NASDAQ Global Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

As of November 8, 2024, 23,911,668 common shares, $4.00 par value, were outstanding.

PART I

ITEM 1. FINANCIAL STATEMENTS

First Mid Bancshares, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)	September 30, 2024			December 31, 2023
Assets
Cash and due from banks:
Non-interest bearing	$	118,098		$	122,871
Interest bearing		46,067			11,211
Federal funds sold		26			8,982
Cash and cash equivalents		164,191			143,064
Certificates of deposit		3,500			1,470
Investment securities:
Available-for-sale, at fair value (amortized cost of $1,274,661 and $1,363,721 at September 30, 2024 and December 31, 2023, respectively)		1,115,552			1,171,572
Held-to-maturity, at amortized cost (estimated fair value of $2,298 and $2,286 at September 30, 2024 and December 31, 2023, respectively)		2,298			2,286
Equity securities, at fair value		4,424			4,074
Loans held for sale		8,085			4,980
Loans		5,606,506			5,575,585
Less allowance for credit losses		(68,774	)		(68,675	)
Net loans		5,537,732			5,506,910
Interest receivable		38,387			35,082
Other real estate owned		1,832			1,163
Premises and equipment, net		101,464			101,396
Goodwill, net		203,391			196,461
Intangible assets, net		61,748			67,770
Bank owned life insurance		169,635			166,125
Right of use lease assets		14,560			14,306
Deferred tax asset, net		55,591			70,067
Other assets		80,099			100,068
Total assets	$	7,562,489		$	7,586,794
Liabilities and stockholders’ equity
Deposits:
Non-interest bearing	$	1,387,290		$	1,398,234
Interest bearing		4,701,544			4,725,425
Total deposits		6,088,834			6,123,659
Securities sold under agreements to repurchase		204,343			213,721
Interest payable		6,491			5,437
FHLB borrowings		238,712			263,787
Junior subordinated debentures, net		24,224			24,058
Subordinated debt, net		87,373			106,755
Lease liabilities		14,873			14,615
Other liabilities		39,142			41,558
Total liabilities		6,703,992			6,793,590
Stockholders’ equity:
Common stock ($4 par value; authorized 30,000,000 shares; issued 24,556,622 and 24,479,708 shares in 2024 and 2023, respectively; outstanding 23,904,051 and 23,827,137 shares in 2024 and 2023, respectively)		100,227			99,919
Additional paid-in capital		512,415			509,314
Retained earnings		381,736			338,662
Deferred compensation		2,147			2,629
Accumulated other comprehensive loss		(116,692	)		(136,427	)
Treasury stock, at cost (652,571 shares in 2024 and 652,571 shares in 2023)		(21,336	)		(20,893	)
Total stockholders’ equity		858,497			793,204
Total liabilities and stockholders’ equity	$	7,562,489		$	7,586,794

See accompanying notes to unaudited condensed consolidated financial statements.

2

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Income (unaudited)

(In thousands, except per share data)

	Three months ended						Nine months ended
	September 30,						September 30,
(In thousands, except per share data)	2024			2023			2024			2023
Interest income:
Interest and fees on loans	$	81,775		$	69,143		$	239,158		$	183,747
Interest on investment securities		7,036			9,284			21,846			23,604
Interest on certificates of deposit investments		39			15			102			44
Interest on federal funds sold		28			114			53			297
Interest on deposits with other financial institutions		2,304			1,882			6,378			2,547
Total interest income		91,182			80,438			267,537			210,239
Interest expense:
Interest on deposits		28,341			22,047			80,775			51,394
Interest on securities sold under agreements to repurchase		1,444			1,625			5,115			4,811
Interest on FHLB borrowings		2,194			4,761			6,756			13,719
Interest on other borrowings		1			(12	)		1			(3	)
Interest on junior subordinated debentures		567			545			1,646			1,314
Interest on subordinated debentures		1,092			1,029			3,466			3,003
Total interest expense		33,639			29,995			97,759			74,238
Net interest income		57,543			50,443			169,778			136,001
Provision for credit losses		1,266			5,911			1,992			5,552
Net interest income after provision for credit losses		56,277			44,532			167,786			130,449
Other income:
Wealth management revenues		5,816			4,940			16,543			15,795
Insurance commissions		6,003			5,199			21,747			19,416
Service charges		3,121			2,994			9,304			7,583
Securities gains (losses), net		(277	)		3,389			(433	)		3,337
Mortgage banking revenue, net		1,109			846			2,853			1,328
ATM/debit card revenue		4,267			3,766			12,603			10,114
Bank owned life insurance		1,196			1,024			3,509			3,854
Other		1,788			895			3,797			3,591
Total other income		23,023			23,053			69,923			65,018
Other expense:
Salaries and employee benefits		31,565			25,422			92,177			75,037
Net occupancy and equipment expense		8,055			6,929			23,122			18,969
Net other real estate owned expense		107			902			171			1,062
FDIC insurance		829			785			2,600			2,324
Amortization of intangible assets		3,405			2,568			10,242			5,567
Stationery and supplies		482			335			1,243			942
Legal and professional		2,573			1,844			7,558			5,314
ATM/debit card		1,869			1,751			4,341			3,990
Marketing and donations		836			764			2,512			2,326
Other		4,212			5,796			14,720			13,184
Total other expense		53,933			47,096			158,686			128,715
Income before income taxes		25,367			20,489			79,023			66,752
Income taxes		5,885			5,372			19,293			15,888
Net income	$	19,482		$	15,117		$	59,730		$	50,864
Per share data:
Basic net income per common share	$	0.81		$	0.68		$	2.50		$	2.41
Diluted net income per common share		0.81			0.68			2.49			2.40
Cash dividends declared per common share		0.24			0.23			0.70			0.69

See accompanying notes to unaudited condensed consolidated financial statements.

3

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Comprehensive Income (unaudited)

	Three months ended						Nine months ended
	September 30,						September 30,
(In thousands)	2024			2023			2024			2023
Net income	$	19,482		$	15,117		$	59,730		$	50,864
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, net of tax benefit (expense) of ($11,316) and $10,183 for three months ended September 30, 2024 and 2023, respectively and ($7,300) and $10,223 for the nine months ended September 30, 2024 and 2023, respectively		30,106			(24,931	)		19,421			(25,027	)
Less: reclassification adjustment for realized gains (losses) included in net income, net of tax benefit (expense) of $77 and ($983) for three months ended September 30, 2024 and 2023, respectively and $119 and ($968) for the nine months ended September 30, 2024 and 2023, respectively		(200	)		2,406			(314	)		2,369
Other comprehensive income (loss), net of taxes		30,306			(27,337	)		19,735			(27,396	)
Comprehensive income	$	49,788		$	(12,220	)	$	79,465		$	23,468

See accompanying notes to unaudited condensed consolidated financial statements.

4

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

For the three months ended September 30, 2024 and 2023

(In thousands)	Common Stock			Additional Paid-In- Capital			Retained Earnings			Deferred Compensation		Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
June 30, 2024	$	100,194		$	512,181		$	367,967		$	1,382	$	(146,998	)	$	(21,081	)	$	813,645
Net income		—			—			19,482			—		—			—			19,482
Other comprehensive income, net tax		—			—			—			—		30,306			—			30,306
Cash dividends on common stock (.24/share)		—			—			(5,713	)		—		—			—			(5,713	)
Forfeiture of 1,201 restricted shares pursuant to the 2017 stock incentive plan		(4	)		(34	)		—			—		—			—			(38	)
Issuance of 9,384 common shares pursuant to the employee stock purchase plan		37			217			—			—		—			—			254
Deferred compensation		—			—			—			292		—			(255	)		37
Vested restricted shares/units compensation expense		—			51			—			473		—			—			524
September 30, 2024	$	100,227		$	512,415		$	381,736		$	2,147	$	(116,692	)	$	(21,336	)	$	858,497
June 30, 2023	$	86,670		$	428,504		$	315,636		$	1,502	$	(151,566	)	$	(20,059	)	$	660,687
Net income		—			—			15,117			—		—			—			15,117
Other comprehensive loss, net tax		—			—			—			—		(27,337	)		—			(27,337	)
Cash dividends on common stock (.230/share)		—			—			(4,701	)		—		—			—			(4,701	)
Issuance of 11,624 common shares pursuant to the employee stock purchase plan		46			192			—			—		—			—			238
Issuance of 3,290,222 common shares pursuant to the acquisition of Blackhawk Bancorp, Inc., net proceeds		13,161			80,347			—			—		—			—			93,508
Deferred compensation		—			—			—			153		—			(186	)		(33	)
Vested restricted shares/units compensation expense		—			52			—			417		—			—			469
September 30, 2023	$	99,877		$	509,095		$	326,052		$	2,072	$	(178,903	)	$	(20,245	)	$	737,948

5

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

For the nine months ended September 30, 2024

(In thousands)	Common Stock		Additional Paid-In- Capital			Retained Earnings			Deferred Compensation			Accumulated Other Comprehensive Loss			Treasury Stock			Total
December 31, 2023	$	99,919	$	509,314		$	338,662		$	2,629		$	(136,427	)	$	(20,893	)	$	793,204
Net income		—		—			59,730			—			—			—			59,730
Other comprehensive loss, net tax		—		—			—			—			19,735			—			19,735
Cash dividends on common stock (0.70/share)		—		—			(16,656	)		—			—			—			(16,656	)
Issuance of 45,995 restricted shares pursuant to 2017 stock incentive plan, net of forfeitures		185		1,356			—			—			—			—			1,541
Issuance of 5,600 common shares pursuant to 2017 stock incentive plan		22		166			—			—			—			—			188
Issuance of 25,319 common shares pursuant to the employee stock purchase plan		101		551			—			—			—			—			652
Deferred compensation		—		—			—			(1,934	)		—			(443	)		(2,377	)
Grant of restricted units pursuant to 2017 stock incentive plan		—		1,485			—			—			—			—			1,485
Release of restricted units pursuant to 2017 stock incentive plan		—		(617	)		—			—			—			—			(617	)
Vested restricted shares/units compensation expense		—		160			—			1,452			—			—			1,612
September 30, 2024	$	100,227	$	512,415		$	381,736		$	2,147		$	(116,692	)	$	(21,336	)	$	858,497

6

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

For the nine months ended September 30, 2023

(In thousands)	Common Stock		Additional Paid-In- Capital			Retained Earnings			Deferred Compensation			Accumulated Other Comprehensive Loss			Treasury Stock			Total
December 31, 2022	$	86,366	$	427,001		$	289,284		$	2,064		$	(151,507	)	$	(20,053	)	$	633,155
Net income		—		—			50,864			—			—			—			50,864
Other comprehensive loss, net tax		—		—			—			—			(27,396	)		—			(27,396	)
Cash dividends on common stock (0.69/share)		—		—			(14,096	)		—			—			—			(14,096	)
Issuance of 54,498 restricted shares pursuant to 2017 stock incentive plan, net of forfeitures		218		1,404			—			—			—			—			1,622
Issuance of 4,350 common shares pursuant to 2017 stock incentive plan		17		103			—			—			—			—			120
Issuance of 28,762 common shares pursuant to the employee stock purchase plan		115		552			—			—			—			—			667
Issuance of 3,290,222 common shares pursuant to the acquisition of Blackhawk Bancorp, Inc., net proceeds		13,161		80,347			—			—			—			—			93,508
Purchase of 170 shares of treasury stock		—		—			—			—			—			(5	)		(5	)
Deferred compensation		—		—			—			(1,036	)		—			(187	)		(1,223	)
Grant of restricted units pursuant to 2017 stock incentive plan		—		1,048			—			—			—			—			1,048
Release of restricted units pursuant to 2017 stock incentive plan		—		(1,529	)		—			—			—			—			(1,529	)
Vested restricted shares/units compensation expense		—		169			—			1,044			—			—			1,213
September 30, 2023	$	99,877	$	509,095		$	326,052		$	2,072		$	(178,903	)	$	(20,245	)	$	737,948

See accompanying notes to unaudited condensed consolidated financial statements.

7

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

	Nine months ended September 30,
(In thousands)	2024			2023
Cash flows from operating activities:
Net income	$	59,730		$	50,864
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		1,992			5,552
Depreciation, amortization and accretion, net		15,630			9,971
Change in cash surrender value of bank owned life insurance		(3,509	)		(2,878	)
Change in bank owned life insurance		—			(976	)
Stock-based compensation expense		1,741			1,213
Operating lease payments		(2,502	)		(2,414	)
Loss (gain) on investment securities, net		433			(3,337	)
(Gain) loss on sales and write downs of other real estate owned, net		(33	)		1,227
Loss on sale of other assets		8			69
Gain on sale of loans held for sale, net		(2,631	)		(934	)
Gain on repayment of subordinated debentures		(493	)		—
Increase in accrued interest receivable		(3,305	)		(4,090	)
Increase in accrued interest payable		1,393			2,306
Origination of loans held for sale		(103,534	)		(51,413	)
Proceeds from sale of loans held for sale		103,060			46,452
Decrease (increase) in other assets		21,398			(2,351	)
Decrease in other liabilities		(3,227	)		(5,692	)
Net cash provided by operating activities		86,151			43,569
Cash flows from investing activities:
Proceeds from maturities of certificates of deposit investments		245			690
Purchases of certificates of deposit investments		(2,275	)		(245	)
Proceeds from sales of securities available-for-sale		32,338			265,145
Proceeds from maturities of securities available-for-sale		71,126			80,932
Proceeds from maturities of securities held-to-maturity		—			695
Purchases of securities available-for-sale		(16,299	)		(1,063	)
Purchase of securities held-to-maturity		(57	)		—
Net (increase) decrease in loans		(33,305	)		21,078
Purchases of premises and equipment		(3,703	)		(3,021	)
Proceeds from sale of premises and equipment		7			—
Proceeds from sales of other real property owned		318			1,754
Proceeds from bank owned life insurance death benefit		—			2,048
Net cash (used in) provided by acquisition		(8,944	)		44,621
Net cash provided by investing activities		39,451			412,634
Cash flows from financing activities:
Net decrease in deposits		(34,825	)		(105,649	)
Decrease in repurchase agreements		(9,378	)		(6,436	)
Proceeds from FHLB advances		75,000			150,000
Repayment of FHLB advances		(100,000	)		(250,000	)
Repayment of subordinated debenture		(19,455	)		—
Proceeds from issuance of common stock		839			787
Purchase of treasury stock		—			(5	)
Dividends paid on common stock		(16,656	)		(14,096	)
Net cash used in financing activities		(104,475	)		(225,399	)
Increase in cash and cash equivalents		21,127			230,804
Cash and cash equivalents at beginning of period		143,064			152,433
Cash and cash equivalents at end of period	$	164,191		$	383,237

See accompanying notes to unaudited condensed consolidated financial statements.

8

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

	Nine months ended September 30,
(In thousands)	2024			2023
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	96,705		$	70,857
Income taxes, net of refunds		(1,445	)		16,627
Supplemental disclosures of noncash investing and financing activities
Loans transferred to other real estate	$	491		$	648
Initial recognition of right-of-use assets		2,404			659
Initial recognition of lease liabilities		2,404			659
Dividends reinvested in common stock		—			—
Supplemental disclosures for purchases of capital stock
Fair value of assets acquired	$	11,449		$	1,328,280
Consideration paid:
Cash paid		9,000			10,172
Common stock issued		—			93,508
Total consideration paid		9,000			103,680
Fair value of liabilities assumed	$	2,449		$	1,224,600

9

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1 -- Basis of Accounting and Consolidation

The unaudited condensed consolidated financial statements include the accounts of First Mid Bancshares, Inc. (“Company”) and its wholly owned subsidiaries: First Mid Bank & Trust, N.A. (“First Mid Bank”), First Mid Wealth Management Company, First Mid Insurance Group, Inc. (“First Mid Insurance”), and First Mid Captive, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. The financial information reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods ended September 30, 2024 and 2023, and all such adjustments are of a normal recurring nature. Certain amounts in the prior year’s consolidated financial statements may have been reclassified to conform to the September 30, 2024 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended September 30, 2024 are not necessarily indicative of the results expected for the year ending December 31, 2024. The Company operates as a one-segment entity for financial reporting purposes. The 2023 year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and related footnote disclosures although the Company believes that the disclosures made are adequate to make the information not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K.

Blackhawk Bancorp, Inc.

On March 20, 2023, First Mid Bancshares, Inc. (“First Mid”) and Eagle Sub LLC, a newly formed Wisconsin limited liability company and wholly-owned subsidiary of First Mid (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Blackhawk Bancorp, Inc., a Wisconsin corporation (“Blackhawk”), pursuant to which, among other things, First Mid agreed to acquire 100% of the issued and outstanding shares of Blackhawk pursuant to a business combination whereby Blackhawk will merge with and into Merger Sub, whereupon the separate corporate existence of Blackhawk will cease and Merger Sub will continue as the surviving company and a wholly-owned subsidiary of First Mid (the “Merger”).

Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $0.01 per share, of Blackhawk issued and outstanding immediately prior to the effective time of the Merger (other than shares held in treasury by Blackhawk and dissenting shares) were converted into and become the right to receive 1.15 shares of common stock, par value $4.00 per share, of First Mid and cash in lieu of fractional shares, less any applicable taxes required to be withheld, and subject to certain potential adjustments. On an aggregate basis, the total consideration payable by First Mid at the closing of the Merger to Blackhawk’s shareholders and equity award holders was 3,290,222 shares of First Mid common stock valued at $93.51 million and $1,928 of cash in lieu of fractional shares.

The Blackhawk Merger closed August 15, 2023 and Blackhawk Bank was merged into First Mid Bank on December 1, 2023.

Website

The Company maintains a website at www.firstmid.com. All periodic and current reports of the Company and amendments to these reports filed with the Securities and Exchange Commission (“SEC”) can be accessed, free of charge, through this website as soon as reasonably practicable after these materials are filed with the SEC.

General Litigation

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.

10

Stock Plans

At the Annual Meeting of Stockholders held April 26, 2017, the stockholders approved the First Mid-Illinois Bancshares, Inc. 2017 Stock Incentive Plan (“SI Plan”). The SI Plan was implemented to succeed the Company’s 2007 Stock Incentive Plan, which had a ten-year term. The SI Plan is intended to provide a means whereby directors, employees, consultants and advisors of the Company and its subsidiaries may sustain a sense of proprietorship and personal involvement in the continued development and financial success of the Company and its subsidiaries, thereby advancing the interests of the Company and its stockholders. Accordingly, directors and selected employees, consultants and advisors may be provided the opportunity to acquire shares of common stock of the Company on the terms and conditions established in the SI Plan.

Following the stockholders’ approval at the 2021 annual meeting of the Company, a maximum of 399,983 shares of common stock may be issued under the SI Plan. There have been no stock options awarded under any Company plan since 2008. The Company has awarded 53,766 and 60,550 shares of restricted stock during the nine months ended September 30, 2024 and 2023, respectively, and 39,150 and 37,900 restricted stock units during the nine months ended September 30, 2024 and 2023, respectively.

Employee Stock Purchase Plan

At the Annual Meeting of Stockholders held April 25, 2018, the stockholders approved the First Mid-Illinois Bancshares, Inc. Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to promote the interests of the Company by providing eligible employees with the opportunity to purchase shares of common stock of the Company at a 15% discount through payroll deductions. The ESPP is also intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code.

A maximum of 600,000 shares of common stock may be issued under the ESPP. During the nine months ended September 30, 2024 and 2023, 25,319 shares and 28,762 shares, respectively, were issued pursuant to the ESPP.

Captive Insurance Company

First Mid Captive, Inc. (the “Captive"), a wholly owned subsidiary of the Company which was formed and began operations in December 2019, is a Nevada-based captive insurance company. The Captive insures against certain risks unique to operations of the Company and its subsidiaries for which insurance may not be currently available or economically feasible in today's insurance marketplace. The Captive pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. The Captive is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. It has elected to be taxed under Section 831(b) of the Internal Revenue Code. Pursuant to Section 831(b), if gross premiums do not exceed $2.8 million, then the Captive is taxable solely on its investment income. The Captive is included in the Company's consolidated financial statements and its federal income return.

Bank Owned Life Insurance

First Mid Bank has purchased life insurance policies on certain senior management. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts that are probable at settlement.

Revenue Recognition

Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), establishes a revenue recognition model for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Most of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans and investment securities, and revenue related to mortgage servicing activities, which are subject to other accounting standards. A description of the revenue-generating activities that are within the scope of ASC 606, and included in other income in the Company’s condensed consolidated statements of income are as follows:

Trust revenues. The Company generates fee income from providing fiduciary services through its subsidiary, First Mid Wealth Management Company. Fees are billed in arrears based upon the preceding period account balance. Revenue from farm management services is recorded when the service is complete, for example when crops are sold.

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Brokerage commissions. Revenue is recorded at the beginning of each quarter through billing to customers based on the account asset size on the last day of the previous quarter. If a withdrawal of funds takes place, a prorated refund may occur; this is reflected within the same quarter as the original billing occurred. All performance obligations are met within the same quarter that the revenue is recorded.

Insurance commissions. The Company’s insurance agency subsidiary, First Mid Insurance, receives commissions on premiums of new and renewed business policies. First Mid Insurance records commission revenue on direct bill policies as the cash is received. For agency bill policies, First Mid Insurance retains its commission portion of the customer premium payment and remits the balance to the carrier. In both cases, the entire performance obligation is held by the carriers.

Service charges on deposits. The Company generates revenue from fees charged for deposit account maintenance, overdrafts, wire transfers, and check fees. The revenue related to deposit fees is recognized at the time the performance obligation is satisfied.

ATM/debit card revenue. The Company generates revenue through service charges on the use of its ATM machines and interchange income from the use of Company issued credit and debit cards. The revenue is recognized at the time the service is used and the performance obligation is satisfied.

Other income. Treasury management fees and lock box fees are received and recorded after the service performance obligation is completed. Merchant bank card fees are received from various vendors; however, the performance obligation is with the vendors. The Company records gains on the sale of loans and the sale of OREO properties after the transactions are complete and transfer of ownership has occurred.

As each of the Company’s facilities is in markets with similar economies, no disaggregation of revenue is necessary.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in stockholders’ equity as of September 30, 2024 and December 31, 2023 are as follows (in thousands):

	Unrealized Losses on Securities
September 30, 2024
Net unrealized losses on securities available-for-sale	$	(159,109	)
Tax benefit		42,417
Balance at September 30, 2024	$	(116,692	)
December 31, 2023
Net unrealized losses on securities available-for-sale	$	(192,149	)
Tax benefit		55,722
Balance at December 31, 2023	$	(136,427	)

Amounts reclassified from accumulated other comprehensive loss and the affected line items in the statements of income during the three and nine months ended September 30, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities	$	(277	)	$	3,389		$	(433	)	$	3,337		Securities (loss) gain, net
Tax effect		77			(983	)		119			(968	)	Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)	$	(200	)	$	2,406		$	(314	)	$	2,369		Net reclassified amount

See “Note 3 – Investment Securities” for more detailed information regarding unrealized losses on available-for-sale securities.

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New Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures. The amendments expand the disclosure requirements of income taxes, primarily related to the income tax rate reconciliation and income taxes paid with the intention to enhance transparency and decision usefulness of income tax disclosures. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this accounting pronouncement will have no impact on the Financial Statements aside from additional disclosures presented in the Notes to Consolidated Financial Statements.

In November 2023, the Financial Accounting Standards Board issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update require annual and interim disclosures on significant segment expenses that are regularly provided to the chief operating decision maker and require annual and interim disclosures on “other segment items” that comprise the difference between segment revenue less segment expense compared to the reported measure of segment profit or loss. In addition, the amendments will require all annual disclosures that are currently required to be reported on an interim basis and requires disclosure of the title and position of the chief operating decision maker and how that position uses the information to assess segment performance and the allocation of resources. ASU 2023-07 also requires entities that have a single reportable segment, such as the Company, to provide all disclosures required in this update and the existing segment disclosures in Topic 280. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of ASU 2023-07 and does not expect them to have a material effect on the consolidated financial statements.

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Note 2 -- Earnings Per Share

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding. Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the Company’s stock options, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the three and nine months ended September 30, 2024 and 2023 were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Basic net income per common share
Available to common stockholders:
Net income	$	19,482,000	$	15,117,000	$	59,730,000	$	50,864,000
Weighted average common shares outstanding		23,905,099		22,220,438		23,891,430		21,086,802
Basic earnings per common share	$	0.81	$	0.68	$	2.50	$	2.41
Diluted net income per common share
Available to common stockholders:
Net income applicable to diluted earnings per share	$	19,482,000	$	15,117,000	$	59,730,000	$	50,864,000
Weighted average common shares outstanding		23,905,099		22,220,438		23,891,430		21,086,802
Dilutive potential common shares: restricted stock awarded		101,548		98,896		97,048		90,144
Diluted weighted average common shares outstanding		24,006,647		22,319,334		23,988,478		21,176,946
Diluted earnings per common share	$	0.81	$	0.68	$	2.49	$	2.40

There were no shares excluded when computing diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 because they were anti-dilutive.

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Note 3 -- Investment Securities

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at September 30, 2024 and December 31, 2023 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	212,259	$	1	$	(18,091	)	$	194,169
Obligations of states and political subdivisions		326,751		255		(46,562	)		280,444
Mortgage-backed securities: GSE residential		668,554		1,564		(93,269	)		576,849
Other securities		67,097		—		(3,007	)		64,090
Total available-for-sale	$	1,274,661	$	1,820	$	(160,929	)	$	1,115,552
Held-to-maturity:
Other investments	$	2,298	$	—	$	—		$	2,298
Total held-to-maturity	$	2,298	$	—	$	—		$	2,298
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	237,875	$	—	$	(26,219	)	$	211,656
Obligations of states and political subdivisions		337,835		152		(49,371	)		288,616
Mortgage-backed securities: GSE residential		714,216		1,158		(113,074	)		602,300
Other securities		73,795		—		(4,795	)		69,000
Total available-for-sale	$	1,363,721	$	1,310	$	(193,459	)	$	1,171,572
Held-to-maturity:
Other investments	$	2,286	$	—	$	—		$	2,286
Total held-to-maturity	$	2,286	$	—	$	—		$	2,286

The Company also had $4.4 million and $4.1 million of equity securities, at fair value, as of September 30, 2024 and December 31, 2023, respectively. The Company's held-to-maturity securities are annuities for which the risk of loss is minimal. As such, as of September 30, 2024, the Company did not record an allowance for credit losses on its held-to-maturity securities.

Realized gains and losses resulting from sales of securities were as follows during the three and nine months ended September 30, 2024 and 2023 (in thousands):

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Gross gains	$	11		$	3,823		$	46		$	3,829
Gross losses		(288	)		(434	)		(479	)		(492	)

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The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at September 30, 2024 and the weighted average yield for each range of maturities (dollars in thousands):

	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	181,606		$	12,563		$	—		$	—		$	194,169
Obligations of state and political subdivisions		24,154			115,365			139,325			1,600			280,444
Mortgage-backed securities: GSE residential		3,068			4,677			34,374			534,730			576,849
Other securities		46,927			16,383			780			—			64,090
Total available-for-sale investments	$	255,755		$	148,988		$	174,479		$	536,330		$	1,115,552
Weighted average yield		2.04	%		2.38	%		2.26	%		1.81	%		2.01	%
Full tax-equivalent yield		2.11	%		2.88	%		2.70	%		1.83	%		2.17	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,298		$	2,298
Total held-to-maturity	$	—		$	—		$	—		$	2,298		$	2,298
Weighted average yield		—	%		—	%		—	%		—	%		—	%
Full tax-equivalent yield		—	%		—	%		—	%		—	%		—	%

The weighted average yields are calculated based on the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 21% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at September 30, 2024.

Investment securities carried at approximately $834.1 million and $831.0 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law.

The following table presents the aging of gross unrealized losses and fair value by investment category as of September 30, 2024 and December 31, 2023 (in thousands):

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	300	$	—		$	193,524	$	(18,091	)	$	193,824	$	(18,091	)
Obligations of states and political subdivisions		13,802		(833	)		251,107		(45,729	)		264,909		(46,562	)
Mortgage-backed securities: GSE residential		—		—			547,233		(93,269	)		547,233		(93,269	)
Other securities		—		—			58,340		(3,007	)		58,340		(3,007	)
Total	$	14,102	$	(833	)	$	1,050,204	$	(160,096	)	$	1,064,306	$	(160,929	)
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,288	$	(4	)	$	210,069	$	(26,215	)	$	211,357	$	(26,219	)
Obligations of states and political subdivisions		22,281		(333	)		241,630		(49,038	)		263,911		(49,371	)
Mortgage-backed securities: GSE residential		5,818		(67	)		566,197		(113,007	)		572,015		(113,074	)
Other securities		5,311		(439	)		57,939		(4,356	)		63,250		(4,795	)
Total	$	34,698	$	(843	)	$	1,075,835	$	(192,616	)	$	1,110,533	$	(193,459	)

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U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At September 30, 2024 there were twenty-eight available-for-sale securities with a fair value of $193.5 million and unrealized losses of $18.1 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were thirty-six available-for-sale securities with a fair value of $210.1 million and unrealized losses of $26.2 million in a continuous unrealized loss position for twelve months or more. There were no held-to-maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies in a continuous unrealized loss position for twelve months or more.

Obligations of states and political subdivisions. At September 30, 2024, there were two hundred forty-seven obligations of states and political subdivisions with a fair value of $251.1 million and unrealized losses of $45.7 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023 there were two hundred thirty-seven obligations of states and political subdivisions with a fair value of $241.6 million and unrealized losses of $49.0 million in a continuous unrealized loss position for twelve months or more.

Mortgage-backed Securities: GSE Residential. At September 30, 2024, there were two hundred forty-two mortgage-backed securities with a fair value of $547.2 million and unrealized losses of $93.3 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were two hundred sixty-three mortgage-backed securities with a fair value of $566.2 million and unrealized losses of $113.0 million in a continuous unrealized loss position for twelve months or more.

Other securities. At September 30, 2024, there were forty other securities with a fair value of $58.3 million and unrealized losses of $3.0 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were forty-three other securities with a fair value of $57.9 million and unrealized losses of $4.4 million in a continuous unrealized loss position for twelve months or more.

Note 4 – Loans and Allowance for Credit Losses

Loans are stated at amortized cost net of an allowance for credit losses. Amortized cost is the unpaid principal net of unearned premiums and discounts, and net deferred origination fees and costs. Deferred loan origination fees are reduced by loan origination costs and are amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding.

A summary of loans at September 30, 2024 and December 31, 2023 follows (in thousands):

	September 30, 2024		December 31, 2023
Construction and land development	$	192,327	$	207,033
Agricultural real estate		385,324		392,265
1-4 family residential properties		511,404		549,843
Multifamily residential properties		340,118		321,537
Commercial real estate		2,465,488		2,416,294
Loans secured by real estate		3,894,661		3,886,972
Agricultural loans		233,074		196,202
Commercial and industrial loans		1,288,940		1,273,637
Consumer loans		63,867		92,142
All other loans		175,217		184,609
Total gross loans		5,655,759		5,633,562
Less: loans held for sale		8,085		4,980
		5,647,674		5,628,582
Less:
Net deferred loan fees, premiums and discounts		41,168		52,997
Allowance for credit losses		68,774		68,675
Net loans	$	5,537,732	$	5,506,910

Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at fair value, taking into consideration future commitments to sell the loans. These loans are primarily for 1-4 family residential properties.

Accrued interest on loans, which is excluded from the amortized cost of the balances above, totaled $32.5 million and $29.9 million at September 30, 2024 and December 31, 2023, respectively.

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Most of the Company’s business activities are with customers located near the Company's branch locations in Illinois, Missouri, Texas, and Wisconsin. At September 30, 2024, the Company’s loan portfolio included $618.4 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $508.2 million was concentrated in corn and other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $29.9 million from $588.5 million at December 31, 2023 due to seasonal timing of cash flow requirements. Loans concentrated in corn and other grain farming increased $35.8 million from $472.5 million at December 31, 2023. The Company's underwriting practices include collateralization of loans. Any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio.

In addition, the Company has $226.7 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific issues as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $1.1 billion of loans to lessors of non-residential buildings, and $559.7 million of loans to lessors of residential buildings and dwellings.

The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the board of directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation and most borrowers are below regulatory thresholds. The Company can occasionally have outstanding balances to one borrower up to but not exceeding the regulatory threshold should underwriting guidelines warrant. Most of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments.

The Company’s lending can be summarized into the following primary areas:

Commercial Real Estate Loans. Commercial real estate loans are generally comprised of loans to small business entities to purchase or expand structures in which the business operations are housed, loans to owners of real estate who lease space to non-related commercial entities, loans for construction and land development, loans to hotel operators, and loans to owners of multi-family residential structures, such as apartment buildings. Commercial real estate loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. For the various types of commercial real estate loans, minimum criteria have been established within the Company’s loan policy regarding debt service coverage while maximum limits on loan-to-value and amortization periods have been defined. Maximum loan-to-value ratios range from 65% to 80% depending upon the type of real estate collateral, while the desired minimum debt coverage ratio is 1.20x. Amortization periods for commercial real estate loans are generally limited to twenty or twenty five years, depending on the loan-to-value. The Company’s commercial real estate portfolio is below the thresholds that would designate a concentration in commercial real estate lending, as established by the federal banking regulators.

The following table represents the gross commercial real estate loans by property type as of September 30, 2024 (in thousands):

	September 30, 2024
Commercial real estate
Owner occupied	$	793,289
Non owner occupied
Shopping centers and malls		248,182
Industrial and warehouse		225,889
Hotels and motels		212,145
Skilled nursing facility		163,030
Office		149,736
Retail		116,988
Assisted living facility		115,860
Medical office		96,539
Other property types		343,830
Total commercial real estate	$	2,465,488

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Commercial and Industrial Loans. Commercial and industrial loans are primarily comprised of working capital loans used to purchase inventory and fund accounts receivable that are secured by business assets other than real estate. These loans are generally written for one year or less. Also, equipment financing is provided to businesses with these loans generally limited to 80% of the value of the collateral and amortization periods limited to seven years. Commercial loans are often accompanied by a personal guaranty of the principal owners of a business. Like commercial real estate loans, the underlying cash flow of the business is the primary consideration in the underwriting process. The financial condition of commercial borrowers is monitored at least annually with the type of financial information required determined by the size of the relationship. Measures employed by the Company for businesses with higher risk profiles include the use of government- assisted lending programs through the Small Business Administration and U.S. Department of Agriculture.

Agricultural and Agricultural Real Estate Loans. Agricultural loans are generally comprised of seasonal operating lines to cash grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop. Loan-to-value ratios on loans secured by farmland generally do not exceed 65% and have amortization periods limited to twenty-five years. Federal government-assistance lending programs through the Farm Service Agency are used to mitigate the level of credit risk when deemed appropriate.

Residential Real Estate Loans. Residential real estate loans generally include loans for the purchase or refinance of residential real estate properties consisting of one-to-four units and home equity loans and lines of credit. The Company sells most of its long-term fixed rate residential real estate loans to secondary market investors. The Company also releases the servicing of these loans upon sale. Residential real estate loans are typically underwritten to conform to industry standards including criteria for maximum debt-to-income and loan-to-value ratios as well as minimum credit scores. Loans secured by first liens on residential real estate held in the portfolio typically do not exceed 80% of the value of the collateral and have amortization periods of twenty-five years or less. The Company does not originate subprime mortgage loans.

Consumer Loans. Consumer loans are primarily comprised of loans to individuals for personal and household purposes such as the purchase of an automobile or other living expenses. Minimum underwriting criteria have been established that consider credit score, debt-to-income ratio, employment history, and collateral coverage. Typically, consumer loans are set up on monthly payments with amortization periods based on the type and age of the collateral.

Other Loans. Other loans consist primarily of loans to municipalities to support community projects such as infrastructure improvements or equipment purchases. Underwriting guidelines for these loans are consistent with those established for commercial loans with the additional repayment source of the taxing authority of the municipality.

Allowance for Credit Losses

The allowance for credit losses represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and modified loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating large individually evaluated loans separately from non-individually evaluated loans.

Individually Evaluated Loans

The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified via the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. For loans greater than $250,000, impairment is individually measured each quarter using one of three alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent

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loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs.

Non-Individually Evaluated Loans

Non-individually evaluated loans comprise the vast majority of the Company’s total loan portfolio and include loans in accrual status and those credits not identified as modified loans. A small portion of these loans are considered “criticized” due to the risk rating assigned reflecting elevated credit risk due to characteristics, such as a strained cash flow position, associated with the individual borrowers. Criticized loans are those assigned risk ratings of Special Mention, Substandard, or Doubtful.

To determine the allowance, the loan portfolio is segmented based on similar risk characteristics. The allowance for credit losses is estimated using a discounted cash flow (DCF) methodology. The DCF projects future cash flows over the life of the loan portfolio. Probability of default (PD) and loss given default (LGD) are key components in calculating expected losses in this model. The PD is forecasted using a regression model that determines the likelihood of default with a forward-looking forecast of unemployment rates. The LGD is the percentage of defaulted loans that is ultimately charged off. The allowance is calculated as the net present value of the expected cash flows less the amortized cost basis of the loans. Prior to 2022, the allowance for credit losses was measured on a collective (pool) basis for non-individually evaluated loans with similar risk characteristics. Historical credit loss experience provided the basis for the estimate of expected credit losses. Adjustments to expected losses are made using qualitative factors for relevant to each loan segment including merger & acquisition activity, economic conditions, changes in policies, procedures & underwriting, and concentrations. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

The Company also considers specific current economic events occurring globally, in the U.S. and in its local markets. Events considered include the status of trade agreements with China, scheduled increases in minimum wage and changes to the minimum salary threshold for overtime provisions, current and projected unemployment rates, current and projected grain and oil prices and economies of local markets where customers work and operate.

Within each pool, risk elements are evaluated that have specific impacts to the borrowers within the pool. These, along with the general risks and events, and the specific lending policies and procedures by loan type described above, are analyzed to estimate the qualitative factors used to adjust the historical loss rates.

During the current period, the following assumptions and factors were considered when determining the historical loss rate and any potential adjustments by loan pool.

Construction and Land Development Loans. Historical losses in this segment remain very low. While inflationary pressures have caused some risk in this segment, most projects are associated with financially strong borrowers. The qualitative factors for this segment increased by a minor amount for the quarter due to balances hitting 90% of an internal concentration threshold.

Agricultural Real Estate Loans. Historical losses in the segment remain very low. Farmland values have increased over an extended period of time and remained stable over the last year. There was no change to the qualitative factors for this segment.

Residential Real Estate Non Owner Occupied Loans. The loan segment has remained stable throughout the last several years. Both adversely classified and past dues have been consistent. There was no change to the qualitative factors for this segment.

Residential Real Estate Owner Occupied Loans. The loan segment has remained stable throughout the last several years. Both adversely classified and past dues have been consistent. There was no change to the qualitative factors for this segment.

HELOC Loans. These loans are a small segment to overall loan balances. In the period, past dues increased to a level that resulted in a significant increase to the qualitative factors for this segment.

Commercial Real Estate Owner Occupied Loans. This segment has remained stable, despite macro segment concerns over commercial real estate. The Company has previously increased qualitative factors for those conditions, but believes the stability in the portfolio and improvement in the macro-economic environment warranted a moderate decrease in the factor for the period.

Commercial Real Estate Non Owner Occupied Loans. This segment includes the Company's largest balances. While qualitative factors had been increased in past periods for the economic uncertainty in the macro conditions, the Company did not believe any additional changes were warranted other than minor decrease for falling below the internal concentration thresholds for factor adjustments.

Agricultural Loans. Losses in this segment are very low. Commodity prices have remained depressed for an extended period but yields have experienced increases from previous concerns from the weather. The qualitative factors of this segment were increased in

20

prior periods and the Company added to the factor again at a minor level.

Commercial and Industrial Loans. This segment includes the largest balance of allowance for credit losses. The qualitative factors for this segment were not changed in the periods as the allowance is viewed as appropriate for the current risk and outlook. Most of the repricing for higher rates in this loan segment has already occurred.

Consumer Loans. This segment is a small portion of the Company's loan portfolio. This segment will likely be impacted by any recession that may appear and already been impacted by the inflationary pressures. The current allowance for this segment is appropriate for the risk and, therefore, there were no changes to the qualitative factors period.

Acquired Loans. Prior to January 1, 2020 loans acquired with evidence of credit deterioration since origination and for which it was probable that all contractually required payments would not be collected were considered purchased credit impaired at the time of acquisition. Purchase credit-impaired ("PCI") loans were accounted for under ASC 310-30, Receivables--Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"), and were initially measured at fair value, which included the estimated future credit losses expected to be incurred over the life of the loan.

Accordingly, an allowance for credit losses related to these loans was not carried over and recorded at the acquisition date. The cash flows expected to be collected were estimated using current key assumptions, such as default rates, value of underlying collateral, severity and prepayment speeds.

Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans.

The following table presents the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2024 (in thousands):

	Construction and Land Development			Agricultural Real Estate			1-4 Family Residential Properties			Commercial Real Estate		Agricultural Loans			Commercial and Industrial		Consumer Loans		Total
Three months ended September 30, 2024
Beginning balance	$	2,646		$	1,372		$	3,580		$	32,918	$	885		$	24,931	$	1,980	$	68,312
Provision for credit loss expense		23			(30	)		55			349		(50	)		542		377		1,266
Loans charged off		—			—			42			451		—			1		840		1,334
Recoveries collected		5			—			88			9		25			97		306		530
Ending balance	$	2,674		$	1,342		$	3,681		$	32,825	$	860		$	25,569	$	1,823	$	68,774
Nine months ended September 30, 2024
Beginning balance	$	2,918		$	1,366		$	4,220		$	31,758	$	705		$	25,450	$	2,258	$	68,675
Provision for credit loss expense		(249	)		(24	)		(633	)		1,343		391			557		607		1,992
Loans charged off		—			—			143			451		261			643		1,640		3,138
Recoveries collected		5			—			237			175		25			205		598		1,245
Ending balance	$	2,674		$	1,342		$	3,681		$	32,825	$	860		$	25,569	$	1,823	$	68,774

21

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2023 and for the year ended December 31, 2023 (in thousands):

	Construction and Land Development		Agricultural Real Estate			1-4 Family Residential Properties		Commercial Real Estate		Agricultural Loans		Commercial and Industrial		Consumer Loans		Total
Three months ended September 30, 2023
Beginning balance	$	2,208	$	1,370		$	3,247	$	28,014	$	524	$	21,544	$	1,812	$	58,719
Initial allowance on loans purchased with credit deterioration		308		—			124		1,066		—		2,273		20		3,791
Provision for credit loss expense		219		27			629		2,727		245		1,697		367		5,911
Loans charged off		—		—			21		—		132		—		368		521
Recoveries collected		—		—			91		16		3		81		150		341
Ending balance	$	2,735	$	1,397		$	4,070	$	31,823	$	640	$	25,595	$	1,981	$	68,241
Nine months ended September 30, 2023
Beginning balance	$	2,250	$	1,433		$	3,742	$	28,157	$	585	$	20,808	$	2,118	$	59,093
Initial allowance on loans purchased with credit deterioration	$	308	$	—		$	124	$	1,066	$	—	$	2,273	$	20	$	3,791
Provision for credit loss expense		191		(36	)		88		2,278		450		2,202		379		5,552
Loans charged off		14		—			77		25		408		62		995		1,581
Recoveries collected		—		—			193		347		13		374		459		1,386
Ending balance	$	2,735	$	1,397		$	4,070	$	31,823	$	640	$	25,595	$	1,981	$	68,241
Twelve months ended December 31, 2023
Beginning Balance	$	2,250	$	1,433		$	3,742	$	28,157	$	585	$	20,808	$	2,118	$	59,093
Initial allowance on loans purchased with credit deterioration		308		—			124		1,066		—		2,273		20		3,791
Provision for credit loss expense		374		(67	)		225		1,755		490		2,322		1,005		6,104
Loans charged off		14		—			87		25		408		529		1,568		2,631
Recoveries collected		—		—			216		805		38		576		683		2,318
Ending balance	$	2,918	$	1,366		$	4,220	$	31,758	$	705	$	25,450	$	2,258	$	68,675

Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For individually evaluated loans that are considered solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to time frames established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.

22

The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of September 30, 2024 (in thousands):

	Collateral						Allowance
	Real Estate		Business Assets		Total		for Credit Losses
Agricultural real estate	$	533	$	—	$	533	$	—
1-4 family residential properties		—		—		—		—
Multifamily residential properties		970		—		970		—
Commercial real estate		7,767		—		7,767		141
Loans secured by real estate		9,270		—		9,270		141
Commercial and industrial loans		—		351		351		—
Total loans	$	9,270	$	351	$	9,621	$	141

Credit Quality

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, collateral support, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Company uses the following definitions for risk ratings which are commensurate with a loan considered “criticized”:

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 institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current sound-worthiness 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.

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, based on currently existing factors, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans.

23

The following tables present the credit risk profile of the Company’s loan portfolio on amortized cost basis based on risk rating category and year of origination as of September 30, 2024 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2024		2023		2022		2021		2020		Prior		Loans		Total
September 30, 2024
Construction and land development loans
Pass	$	48,615	$	78,688	$	19,261	$	16,051	$	5,290	$	22,542	$	—	$	190,447
Special mention		—		—		—		—		—		390		—		390
Substandard		—		—		6		—		—		14		—		20
Total	$	48,615	$	78,688	$	19,267	$	16,051	$	5,290	$	22,946	$	—	$	190,857
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	15,266	$	18,873	$	157,635	$	54,503	$	51,161	$	80,611	$	—	$	378,049
Special mention		1,170		196		—		989		—		2,028		—		4,383
Substandard		—		141		966		—		—		1,081		—		2,188
Total	$	16,436	$	19,210	$	158,601	$	55,492	$	51,161	$	83,720	$	—	$	384,620
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	38,471	$	38,789	$	76,277	$	78,970	$	65,886	$	117,084	$	77,910	$	493,387
Special mention		—		—		207		77		—		562		88		934
Substandard		163		625		904		531		822		7,337		639		11,021
Total	$	38,634	$	39,414	$	77,388	$	79,578	$	66,708	$	124,983	$	78,637	$	505,342
Current period gross writeoffs	$	—	$	36	$	10	$	—	$	—	$	97	$	—	$	143
Commercial real estate loans
Pass	$	149,862	$	235,559	$	711,647	$	542,617	$	305,947	$	806,776	$	—	$	2,752,408
Special mention		363		—		4,174		2,051		291		7,367		—		14,246
Substandard		—		49		3,526		476		—		7,582		—		11,633
Total	$	150,225	$	235,608	$	719,347	$	545,144	$	306,238	$	821,725	$	—	$	2,778,287
Current period gross writeoffs	$	—	$	—	$	151	$	—	$	—	$	300	$	—	$	451
Agricultural loans
Pass	$	127,739	$	54,805	$	25,999	$	15,584	$	3,110	$	3,917	$	—	$	231,154
Special mention		327		302		—		—		—		—		—		629
Substandard		53		1,561		17		—		—		—		—		1,631
Total	$	128,119	$	56,668	$	26,016	$	15,584	$	3,110	$	3,917	$	—	$	233,414
Current period gross writeoffs	$	—	$	64	$	100	$	52	$	—	$	45	$	—	$	261
Commercial and industrial loans
Pass	$	171,046	$	262,373	$	282,671	$	197,515	$	124,654	$	401,109	$	—	$	1,439,368
Special mention		189		1,031		1,388		5,927		1,347		7,662		—		17,545
Substandard		65		765		247		185		18		656		—		1,936
Total	$	171,300	$	264,169	$	284,306	$	203,627	$	126,019	$	409,427	$	—	$	1,458,849
Current period gross writeoffs	$	—	$	47	$	207	$	378	$	10	$	1	$	—	$	643
Consumer loans
Pass	$	4,678	$	6,171	$	27,723	$	13,491	$	5,671	$	4,856	$	—	$	62,590
Special mention		—		—		24		—		—		—		—		24
Substandard		—		30		253		191		103		31		—		608
Total	$	4,678	$	6,201	$	28,000	$	13,682	$	5,774	$	4,887	$	—	$	63,222
Current period gross writeoffs	$	71	$	43	$	154	$	126	$	48	$	1,198	$	—	$	1,640
Total loans
Pass	$	555,677	$	695,258	$	1,301,213	$	918,731	$	561,719	$	1,436,895	$	77,910	$	5,547,403
Special mention		2,049		1,529		5,793		9,044		1,638		18,009		88		38,151
Substandard		281		3,171		5,919		1,383		943		16,701		639		29,037
Total	$	558,007	$	699,958	$	1,312,925	$	929,158	$	564,300	$	1,471,605	$	78,637	$	5,614,591
Current period gross writeoffs	$	71	$	190	$	622	$	556	$	58	$	1,641	$	—	$	3,138

24

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2023 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2023		2022		2021		2020		2019		Prior		Loans		Total
December 31, 2023
Construction and land development loans
Pass	$	68,086	$	74,065	$	27,392	$	5,188	$	10,795	$	19,115	$	—	$	204,641
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		436		—		436
Total	$	68,086	$	74,065	$	27,392	$	5,188	$	10,795	$	19,551	$	—	$	205,077
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	14	$	—	$	—	$	14
Agricultural real estate loans
Pass	$	19,231	$	164,812	$	57,815	$	53,249	$	19,419	$	71,189	$	—	$	385,715
Special mention		206		—		627		—		1,170		1,868		—		3,871
Substandard		—		—		371		—		—		1,175		—		1,546
Total	$	19,437	$	164,812	$	58,813	$	53,249	$	20,589	$	74,232	$	—	$	391,132
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	66,119	$	96,995	$	79,085	$	73,073	$	26,854	$	105,257	$	75,700	$	523,083
Special mention		—		967		3,184		—		—		3,804		10		7,965
Substandard		152		759		460		396		288		8,865		501		11,421
Total	$	66,271	$	98,721	$	82,729	$	73,469	$	27,142	$	117,926	$	76,211	$	542,469
Current period gross writeoffs	$	10	$	—	$	—	$	—	$	14	$	63	$	—	$	87
Commercial real estate loans
Pass	$	185,628	$	680,099	$	548,733	$	317,075	$	239,323	$	701,464	$	—	$	2,672,322
Special mention		3,666		2,706		1,317		2,159		1,563		7,778		—		19,189
Substandard		—		3,899		520		20		775		7,108		—		12,322
Total	$	189,294	$	686,704	$	550,570	$	319,254	$	241,661	$	716,350	$	—	$	2,703,833
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	25	$	—	$	—	$	25
Agricultural loans
Pass	$	147,993	$	27,895	$	10,044	$	2,549	$	1,883	$	5,854	$	—	$	196,218
Special mention		6		10		—		—		38		—		—		54
Substandard		—		—		—		—		—		—		—		—
Total	$	147,999	$	27,905	$	10,044	$	2,549	$	1,921	$	5,854	$	—	$	196,272
Current period gross writeoffs	$	—	$	276	$	—	$	—	$	—	$	132	$	—	$	408
Commercial and industrial loans
Pass	$	290,304	$	306,794	$	232,198	$	154,499	$	73,906	$	347,957	$	—	$	1,405,658
Special mention		1,047		1,857		9,982		562		597		28,900		—		42,945
Substandard		—		537		791		58		29		750		—		2,165
Total	$	291,351	$	309,188	$	242,971	$	155,119	$	74,532	$	377,607	$	—	$	1,450,768
Current period gross writeoffs	$	—	$	353	$	—	$	49	$	20	$	107	$	—	$	529
Consumer loans
Pass	$	9,547	$	40,225	$	21,264	$	10,387	$	4,475	$	4,035	$	—	$	89,933
Special mention		—		26		—		—		—		—		—		26
Substandard		86		405		325		139		59		41		—		1,055
Total	$	9,633	$	40,656	$	21,589	$	10,526	$	4,534	$	4,076	$	—	$	91,014
Current period gross writeoffs	$	22	$	177	$	89	$	10	$	7	$	1,075	$	—	$	1,380
Total loans
Pass	$	786,908	$	1,390,885	$	976,531	$	616,020	$	376,655	$	1,254,871	$	75,700	$	5,477,570
Special mention		4,925		5,566		15,110		2,721		3,368		42,350		10		74,050
Substandard		238		5,600		2,467		613		1,151		18,375		501		28,945
Total	$	792,071	$	1,402,051	$	994,108	$	619,354	$	381,174	$	1,315,596	$	76,211	$	5,580,565
Current period gross writeoffs	$	10	$	761	$	208	$	51	$	93	$	1,508	$	—	$	2,631

25

The following table presents the Company’s loan portfolio aging analysis at September 30, 2024 and December 31, 2023 (in thousands):

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
September 30, 2024
Construction and land development	$	—	$	6	$	450	$	456	$	190,401	$	190,857	$	—
Agricultural real estate		141		—		392		533		384,087		384,620		—
1-4 family residential properties		3,081		1,334		2,188		6,603		498,739		505,342		—
Multifamily residential properties		—		—		551		551		337,616		338,167		—
Commercial real estate		581		170		7,561		8,312		2,431,808		2,440,120		—
Loans secured by real estate		3,803		1,510		11,142		16,455		3,842,651		3,859,106		—
Agricultural loans		—		1,190		—		1,190		232,224		233,414		—
Commercial and industrial loans		2,290		784		804		3,878		1,279,753		1,283,631		—
Consumer loans		273		73		135		481		62,741		63,222		—
All other loans		—		—		—		—		175,218		175,218		—
Total loans	$	6,366	$	3,557	$	12,081	$	22,004	$	5,592,587	$	5,614,591	$	—
December 31, 2023
Construction and land development	$	—	$	585	$	450	$	1,035	$	204,042	$	205,077	$	—
Agricultural real estate		—		—		1		1		391,131		391,132		—
1-4 family residential properties		3,054		530		1,018		4,602		537,867		542,469		—
Multifamily residential properties		150		—		551		701		318,428		319,129		—
Commercial real estate		819		74		3,765		4,658		2,380,046		2,384,704		—
Loans secured by real estate		4,023		1,189		5,785		10,997		3,831,514		3,842,511		—
Agricultural loans		—		—		—		—		196,272		196,272		—
Commercial and industrial loans		673		73		1,531		2,277		1,263,882		1,266,159		—
Consumer loans		983		162		330		1,475		89,539		91,014		—
All other loans		—		—		—		—		184,609		184,609		—
Total loans	$	5,679	$	1,424	$	7,646	$	14,749	$	5,565,816	$	5,580,565	$	—

Individually Evaluated Loans

Within all loan portfolio segments, loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Impaired loans, excluding certain modified, are placed on nonaccrual status. Impaired loans include nonaccrual loans and loans modified in restructuring where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status until, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. If the restructured loan is on accrual status prior to being modified, the loan is reviewed to determine if the modified loan should remain on accrual status.

The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is ninety days past due. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be modified is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.

The amount of interest income recognized by the Company within the periods stated above was due to loans modified in restructuring that remain on accrual status.

26

Non-Accrual Loans

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded as of September 30, 2024 and December 31, 2023 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

	September 30, 2024				December 31, 2023
	Nonaccrual with no Allowance for		Total		Nonaccrual with no Allowance for		Total
	Credit Loss		Nonaccrual		Credit Loss		Nonaccrual
Construction and land development	$	6	$	6	$	—	$	—
Agricultural real estate		1,647		1,647		1,146		1,146
1-4 family residential properties		3,726		4,840		4,679		4,940
Commercial real estate		6,567		9,419		10,237		10,237
Loans secured by real estate		11,946		15,912		16,062		16,323
Commercial and industrial loans		979		979		1,931		1,931
Consumer loans		257		257		578		578
Total loans	$	13,182	$	17,148	$	18,571	$	18,832

Interest income that would have been recorded under the original terms of such nonaccrual loans totaled $516,000 and $173,000 for the nine months ended September 30, 2024 and 2023, respectively.

Loan Modification Disclosures Pursuant to ASU 2022-02

The following table shows the amortized cost of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to outstanding loans is also presented below.

									Total
			Payment		Term		Interest		Class of
	Principal		Delay		Extension		Rate		Financing
	Forgiveness		Investment		Modifications		Reduction		Receivable
September 30, 2024
Agricultural real estate	$	—	$	312	$	—	$	—		0.01	%
1-4 family residential properties		—		47		768		—		0.01	%
Commercial real estate		—		874		212		472		0.03	%
Loans secured by real estate		—		1,233		980		472		0.05	%
Commercial and industrial loans		—		151		119		—		—	%
Consumer loans		—		3		10		—		—	%
Total	$	—	$	1,387	$	1,109	$	472		0.05	%
September 30, 2023
Agricultural real estate	$	—	$	333	$	—	$	—		0.01	%
1-4 family residential properties		—		57		819		—		0.02	%
Commercial real estate		—		770		137		—		0.02	%
Loans secured by real estate		—		1,160		956		—		0.04	%
Commercial and industrial loans		—		218		279		—		0.01	%
Consumer loans		—		7		41		—		—	%
Total	$	—	$	1,385	$	1,276	$	—		0.05	%

27

The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans that have been modified in the last twelve months ended September 30, 2024 and 2023.

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
September 30, 2024
1-4 family residential properties	$	—	$	—	$	—	$	—
Loans secured by real estate		—		—		—		—
Commercial and industrial loans		—		—		—		—
Consumer loans		—		96		116		212
Total loans	$	—	$	96	$	116	$	212
September 30, 2023
1-4 family residential properties	$	28	$	—	$	—	$	28
Loans secured by real estate		28		—		—		28
Commercial and industrial loans		11		—		—		11
Consumer loans		—		—		16		16
Total loans	$	39	$	—	$	16	$	55

The following table shows the financial effect of loan modifications during the current quarter to borrowers experiencing financial difficulty for the three months ended September 30, 2024 and 2023.

	Weighted Average			Weighted Average
	Interest Rate			Term Extension
	Reduction			(in months)
September 30, 2024
Commercial and industrial loans		—	%		7.00
Consumer loans		—	%		—
		—	%		7.00
September 30, 2023
Commercial and industrial loans		4.75	%		5.13
Consumer loans		—	%		3.00
		4.75	%		4.93

A loan is considered to be in payment default once it is 90 days past due under the modified terms. There were no loans modified during the prior twelve months that experienced defaults for nine months ended September 30, 2024 or for the three and nine months ended September 30, 2023.

Purchased Credit Deteriorated (PCD) Loans

The Company has acquired loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans at acquisition date is as follows (in thousands):

	2023
	Blackhawk Acquisition
Purchase price of purchase credit deteriorated loans at acquisition	$	115,250
Allowance for credit losses at acquisition		(3,791	)
Non-credit discount/(premium) at acquisition		(5,476	)
Fair value of purchased credit deteriorated loans at acquisition	$	105,983

28

Note 5 -- Goodwill and Intangible Assets

The Company has goodwill from business combinations, intangible assets from branch acquisitions, identifiable intangible assets assigned to core deposit relationships and customer lists of First Mid Wealth Management Company and First Mid Insurance. The following table presents gross carrying value and accumulated amortization by major intangible asset class as of September 30, 2024 and December 31, 2023 (in thousands):

	September 30, 2024				December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization	$	207,151	$	3,760	$	200,221	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		79,945		42,411		79,945		34,966
Other intangibles		30,857		12,478		26,552		10,620
	$	320,968	$	61,664	$	309,733	$	52,361

Goodwill of $50.1 million was recorded for the acquisition and merger of Blackhawk Bancorp, Inc. during the third quarter of 2023. All of the goodwill was assigned to the banking division of the Company. The goodwill will not be deductible for tax purposes.

The following table provides a reconciliation of the purchase price paid for the acquisition of Blackhawk and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	26,955
Less purchase accounting adjustments:
Fair value of securities	$	(25,521	)
Fair value of loans, net		(43,477	)
Fair value of premises and equipment		(3,856	)
Fair value of time deposits		2,311
Fair value of subordinated and junior subordinated debentures		3,707
Increase in core deposit intangible		33,731
Increase in mortgage servicing rights		3,344
Other assets		6,619
					(23,142	)
				$	50,097

During the quarter ended September 30, 2024, goodwill of $6.9 million was recorded for the acquisition of the stock of Mid Rivers Insurance Group, Inc. (MRIG) in connection with its insurance business. First Mid Insurance was assigned all this goodwill. The following provides a reconciliation of the purchase price paid for Mid Rivers Insurance Group, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	10,059
Less purchase accounting adjustments:
Insurance Company intangible	$	4,305
Other liabilities		(1,176	)
					3,129
				$	6,930

During the quarter ended June 30, 2023, goodwill of $6.0 million was recorded for the acquisition of the stock of Purdum, Gray, Ingledue, Beck, Inc., in connection with its insurance business. First Mid Insurance was assigned all this goodwill. The following provides a reconciliation of the purchase price paid for Purdum, Gray, Ingledue, Beck, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	10,145
Less purchase accounting adjustments:
Insurance Company intangible	$	5,770
Other liabilities		(1,576	)
					4,194
				$	5,951

29

The Company has mortgage servicing rights acquired in previous acquisitions. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of September 30, 2024, September 30, 2023 and December 31, 2023 (in thousands):

	September 30, 2024			September 30, 2023			December 31, 2023
Beginning balance	$	6,859		$	331		$	331
Mortgage servicing rights acquired during period		—			7,062			7,070
Adjustment to valuation reserve		(77	)		0			(8	)
Mortgage servicing rights amortized		(939	)		(161	)		(524	)
Interest only strip		(8	)		(8	)		(10	)
Ending balance	$	5,835		$	7,224		$	6,859

Total amortization expense for three and nine months ended September 30, 2024 and 2023 was as follows (in thousands):

	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Core deposit intangibles	$	2,416	$	1,857	$	7,445	$	3,916
Customer list intangibles		702		578		1,858		1,490
Mortgage servicing rights		287		133		939		161
	$	3,405	$	2,568	$	10,242	$	5,567

Aggregate amortization expense for the current year and estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):

Aggregate amortization expense:
For period 01/01/24 - 09/30/24	$	10,242
Estimated amortization expense:
For period 10/01/24 - 12/31/24		3,436
For year ended 12/31/25		12,310
For year ended 12/31/26		10,594
For year ended 12/31/27		9,330
For year ended 12/31/28		8,116

In accordance with the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets,” codified within ASC 350, the Company performed testing of goodwill for impairment as of September 30, 2024 and determined that, as of that date, goodwill was not impaired. Management also concluded that the remaining amounts and amortization periods were appropriate for all intangible assets.

Note 6 -- Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase were $204.3 million at September 30, 2024, a decrease of $9.4 million from $213.7 million at December 31, 2023. All the transactions have overnight maturities with a weighted average rate of 3.05%.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third-party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential of over-collateralization in the event of counterparty default.

Collateral pledged by class for repurchase agreements are as follows (in thousands):

	September 30, 2024		December 31, 2023
US Treasury securities and obligations of U.S. government corporations and agencies	$	63,127	$	46,544
Mortgage-backed securities: GSE: residential		141,216		167,177
Total	$	204,343	$	213,721

30

Gross FHLB borrowings, were $238.6 million and $263.6 million at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024 the advances were as follows:

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	2.0	4.59%	November 8, 2024
	10,000,000	5.0	1.45%	December 31, 2024
	5,000,000	5.0	0.91%	March 10, 2025
	3,605,826	10.0	2.64%	December 23, 2025
	25,000,000	3.0	4.40%	June 15, 2026
	25,000,000	3.0	4.37%	May 10, 2027
	25,000,000	3.0	4.32%	May 17, 2027
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.93%	June 27, 2029
	5,000,000	10.0	1.15%	October 3, 2029
	5,000,000	10.0	1.12%	October 3, 2029
	10,000,000	10.0	1.39%	December 31, 2029

Note 7 -- Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the inputs and valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Available-for-Sale Securities. The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independent sources of market parameters, including but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Fair value determinations for Level 3 measurements of securities are the responsibility of the Treasury function of the Company. The Company contracts with a pricing specialist to generate fair value estimates on a monthly basis. The Treasury function of the Company challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with accounting standards generally accepted in the United States, analyzes the changes in fair value and compares these changes to internally developed expectations and monitors these changes for appropriateness.

Loans Held for Sale. The fair value of loans held for sale is based on independent asset pricing services which use observable market data as of the measurement date and are therefore classified in Level 2 of the valuation hierarchy.

Derivatives. The fair value of derivatives is based on models using observable market data as of the measurement date and are therefore classified in Level 2 of the valuation hierarchy.

31

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of September 30, 2024 and December 31, 2023 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	194,169	$	—	$	194,169	$	—
Obligations of states and political subdivisions		280,444		—		280,444		—
Mortgage-backed securities		576,849		—		576,849		—
Other securities		64,090		—		58,123		5,967
Total available-for-sale securities		1,115,552		—		1,109,585		5,967
Equity securities		4,424		4,424		—		—
Loans held for sale		8,085		—		8,085		—
Derivative assets: interest rate swaps		2,339		—		2,339		—
Total assets	$	1,130,400	$	4,424	$	1,120,009	$	5,967
Derivative liabilities: interest rate swaps	$	1,755	$	—	$	1,755	$	—
December 31, 2023
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	211,656	$	—	$	211,656	$	—
Obligations of states and political subdivisions		288,616		—		288,616		—
Mortgage-backed securities		602,300		—		602,300		—
Other securities		69,000		—		62,837		6,163
Total available-for-sale securities		1,171,572		—		1,165,409		6,163
Equity securities		4,074		4,074		—		—
Loans held for sale		4,980		—		4,980		—
Derivative assets: interest rate swaps		3,166		—		3,166		—
Total assets	$	1,183,792	$	4,074	$	1,173,555	$	6,163
Derivative liabilities: interest swaps	$	2,217	$	—	$	2,217	$	—

32

The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023 is summarized as follows (in thousands):

	Three months ended September 30, 2024						Nine months ended September 30, 2024
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,966	$	5,966	$	—	$	6,163		$	6,163
Transfers into Level 3		—		1		1		—		3			3
Maturities		—		—		—		—		(199	)		(199	)
Ending balance	$	—	$	5,967	$	5,967	$	—	$	5,967		$	5,967
	Three months ended September 30, 2023						Nine months ended September 30, 2023
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,760	$	5,760	$	—	$	10,000		$	10,000
Transfers into Level 3		—		—		—		—		10			10
Transfers out of Level 3		—		—		—		—		(4,250	)		(4,250	)
Ending balance	$	—	$	5,760	$	5,760	$	—	$	5,760		$	5,760

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Collateral Dependent Loans. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment and estimating fair value include using the fair value of the collateral for collateral dependent loans.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value, which includes selling costs. Individually evaluated loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.

Management establishes a specific allowance for individually evaluated loans that have an estimated fair value that is below the carrying value. The total carrying amount of loans for which a change in specific allowance has occurred as of September 30, 2024 was $594,000 and a fair value of $579,000 resulting in specific loss exposures of $15,000.

When there is little prospect of collecting principal or interest, loans, or portions of loans, may be charged-off to the allowance for credit losses. Losses are recognized in the period an obligation becomes uncollectible. The recognition of a loss does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recovery may be affected in the future.

Foreclosed Assets Held For Sale. Other real estate owned acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for credit losses. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned, or foreclosed asset could differ from the original estimate. If it is determined that fair value declines subsequent to foreclosure, a valuation allowance is recorded through noninterest expense. Operating costs associated with the assets after acquisition are also recorded as noninterest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other noninterest expense. The total carrying amount of other real estate owned as of September 30, 2024 was $1.8 million. Other real estate owned included in the total carrying amount and measured at fair value on a nonrecurring basis during the period amounted to $47,000.

33

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2024 and December 31, 2023 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2024
Collateral dependent loans	$	579	$	—	$	—	$	579
Foreclosed assets held for sale		47		—		—		47
December 31, 2023
Collateral dependent loans	$	1,028	$	—	$	—	$	1,028
Foreclosed assets held for sale		24		—		—		24

Sensitivity of Significant Unobservable Inputs

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at September 30, 2024 and December 31, 2023.

September 30, 2024	Fair Value	Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$579	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	20%
Foreclosed assets held for sale	47	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	1,028	Third party valuations	Discount to reflect realizable value	0% - 40%	20%
Foreclosed assets held for sale		24	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

34

The following tables present estimated fair values of the Company’s financial instruments at September 30, 2024 and December 31, 2023 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2024
Financial assets
Cash and due from banks	$	164,165	$	164,165	$	164,165	$	—	$	—
Federal funds sold		26		26		26		—		—
Certificates of deposit investments		3,500		3,500		—		3,500		—
Available-for-sale securities		1,115,552		1,115,552		—		1,109,585		5,967
Held-to-maturity securities		2,298		2,298		2,298		—		—
Equity securities		4,424		4,424		4,424		—		—
Loans held for sale		8,085		8,085		—		8,085		—
Loans net of allowance for credit losses		5,537,732		5,228,689		—		—		5,228,689
Interest receivable		38,387		38,387		—		38,387		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,555		9,555		—		9,555		—
Financial liabilities
Deposits	$	6,088,834	$	6,007,297	$	—	$	5,053,589	$	953,708
Securities sold under agreements to repurchase		204,343		204,343		—		204,343		—
Interest payable		6,491		6,491		—		6,491		—
Federal Home Loan Bank borrowings		238,712		238,911		—		238,911		—
Subordinated debt, net		87,373		85,637		—		104,836		—
Junior subordinated debentures, net		24,224		21,076		—		21,076		—
December 31, 2023
Financial assets
Cash and due from banks	$	134,082	$	134,082	$	134,082	$	—	$	—
Federal funds sold		8,982		8,982		8,982		—		—
Certificates of deposit investments		1,470		1,470		—		1,470		—
Available-for-sale securities		1,171,572		1,171,572		—		1,165,409		6,163
Held-to-maturity securities		2,286		2,286		2,286		—		—
Equity securities		4,074		4,074		4,074		—		—
Loans held for sale		4,980		4,980		—		4,980		—
Loans net of allowance for credit losses		5,506,910		5,235,525		—		—		5,235,525
Interest receivable		35,082		35,082		—		35,082		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,758		9,758		—		9,758		—
Financial liabilities
Deposits	$	6,123,659	$	6,042,277	$	—	$	5,076,066	$	966,211
Securities sold under agreements to repurchase		213,721		213,714		—		213,714		—
Interest payable		5,437		5,437		—		5,437		—
Federal Home Loan Bank borrowings		263,787		261,206		—		261,206		—
Subordinated debentures		106,755		102,018		—		102,018		—
Junior subordinated debentures		24,058		21,524		—		21,524		—

Note 8 – Business Combinations

Blackhawk Bancorp, Inc.

On August 15, 2023, the Company completed its acquisition of Blackhawk Bancorp, Inc. (“Blackhawk”) pursuant to an Agreement and Plan of Merger Agreement, dated March 20, 2023 (the “Agreement”). Pursuant to the Agreement, Blackhawk was merged with and into the Company. Blackhawk shareholders received 1.15 shares of the Company's common stock for each share of Blackhawk common stock.

The Company accounted for the Blackhawk acquisition as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). ASC 805 requires assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of loans, core deposit

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intangibles, mortgage servicing rights, time deposits, real property, and subordinated debt with the assistance of third-party valuations and appraisals.

A preliminary summary of the fair value of assets received and liabilities assumed are as follows:

(In thousands)
Assets
Cash and due from banks	$	55,600
Loans held for sale		3,222
Loans, net		722,866
Investments-available for sale		377,969
Short-term investments		869
FHLB stock		1,737
Premises and equipment		12,366
Accrued interest receivable		4,029
Prepaid expenses		1,182
Other assets		20,742
Core deposit intangible		34,590
Income tax receivable		2,077
Deferred tax asset		22,152
Mortgage servicing rights		7,031
Total assets acquired	$	1,266,432
Liabilities
Deposits	$	1,194,972
Subordinated and Junior Subordinated debt		16,448
Accrued interest payable		1,091
Accrued and other liabilities		10,508
Total liabilities assumed		1,223,019
Net assets acquired	$	43,413
Total consideration	$	93,510
Goodwill	$	50,097

The following table presents a summary of consideration transferred:

(In thousands, except shares)
Common stock issued (3,290,222 shares)	$	93,508
Cash consideration		2
Purchase price	$	93,510

The Company recorded $50.1 million of goodwill in connection with the acquisition of Blackhawk, none of which is deductible for tax purposes. The amount of goodwill recorded reflects the synergies and operational efficiencies that are expected to result from the acquisition. The descriptions below describe the methods used to determine the fair value of significant assets acquired and liabilities assumed, as presented above:

Loans, net. The fair value of the loan portfolio was calculated on an individual loan basis using a discounted cash flow analysis, with results presented and assumptions applied on a summary basis. This analysis took into consideration the contractual terms of the loans and assumptions related to the cost of debt, cost of equity, servicing cost and other liquidity/risk premium considerations to estimate the projected cash flows. The inputs and assumptions used in the fair value estimate of the loan portfolio include credit mark, discount rate, prepayment speed, and foreclosure lag. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans.

Core deposit intangible. The Company identified customer relationships, in the form of core deposit intangibles, as an identified intangible asset. Core deposit intangibles derive value from the expected future benefits or earnings capacity attributable to the acquired core deposits. The fair value of the core deposit intangible was estimated by identifying the expected future benefits of the core deposits and discounting those benefits back to present value. The core deposit intangible will be amortized over its estimated useful life of approximately 10 years using the sum of the months digits accelerated method.

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Mortgage servicing rights. The Company identified residential mortgage servicing rights intangible asset and determined the fair value using a discounted cash flow analysis. The key inputs and assumptions used in the fair value estimate include prepayment assumptions, servicing costs, delinquencies, foreclosure costs, ancillary income, income earned on float & escrow, interest on escrow, internal rate of return and inflation.

Deposits. The fair value of demand deposit and interest checking deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities.

Subordinated and Junior Subordinated debt. The Subordinated and Junior Subordinated debt was fair valued using an income approach. Cash flows were calculated using an annualized contractual rate adjusted for forward interest costs and discounted using a variable discount rate.

Accounting for acquired loans. Loans acquired are recorded at fair value with no carryover of the related allowance for credit losses. Purchased-credit deteriorated loans (“PCD”) are loans that have experienced more than insignificant credit deterioration since origination and are recorded at the purchase price. The allowance for credit losses is determined at the loan level. The sum of the loan’s purchase price and the allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan.

Non-PCD loans have not experienced a more than insignificant deterioration in credit quality since origination. The difference between the fair value and outstanding balance of the non-PCD loans is recognized as an adjustment to interest income over the lives of the loan.

In accordance with ASC 326, Financial Instruments – Credit Losses, immediately following the acquisition the Company established a $3.8 million allowance for credit losses on the $618.33 million of acquired non-PCD loans through provision for credit losses in the consolidated statement of operations.

The following table provides a summary of PCD loans purchased as part of the Blackhawk acquisition as of the acquisition date:

(In thousands)
Unpaid principal balance	$	115,250
PCD allowance for credit losses at acquisition		(3,791	)
Non-credit discount on acquired loans		(5,476	)
Fair value of PCD loans	$	105,983

The following unaudited pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the Blackhawk Merger taken place at the beginning of the period (dollars in thousands, except per share data):

	Three months ended		Nine months ended
	September 30,		September 30,
	2023		2023
Net interest income	$	57,245	$	171,635
Provision for credit losses		6,246		6,768
Non-interest income		25,205		73,892
Non-interest expense		60,741		166,430
Income before taxes		15,463		72,329
Income tax expense		3,830		17,069
Net income	$	11,633	$	55,260
Earnings per share
Basic	$	0.52	$	2.62
Diluted	$	0.52	$	2.61
Basic weighted average shares o/s		22,220,438		21,086,802
Diluted weighted average shares o/s		22,319,334		21,176,946

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Acquisition costs are expensed as incurred as a component of non-interest expense and primarily include, but are not limited to, severance costs, professional services, data processing fees, and marketing and advertising expenses. The Company incurred acquisition costs related to the Blackhawk acquisition, pre-tax, of $2.5 million and $2.6 million, respectively, during the nine months ended September 30, 2024 and 2023 and $0.1 million and $2.1 million, respectively, during the three months ended September 30, 2024 and 2023.

Note 9 -- Leases

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of September 30, 2024, substantially all the Company's leases are operating leases for real estate property for bank branches, ATM locations, and office space.

These leases are generally for periods of 1 to 25 years with various renewal options. The Company elected the optional transition method permitted by Topic 842. Under this method, the Company recognizes and measures leases that exist at the application date and prior comparative periods are not adjusted. In addition, the Company elected the package of practical expedients:

1.An entity need not reassess whether any expired or existing contracts contain leases.

2.An entity need not reassess the lease classification for any expired or existing leases.

3.An entity need not reassess initial direct costs for any existing leases.

The Company has also elected the practical expedient, which may be elected separately or in conjunction with the package noted above, to use hindsight in determining the lease term and in assessing the right-of-use assets. This expedient must be applied consistently to all leases. Lastly, the Company has elected to use the practical expedient to include both lease and non-lease components as a single component and account for it as a lease. In addition, the Company has elected to not include short-term leases (i.e. leases with terms of twelve months or less) or equipment leases (primarily copiers) deemed immaterial, on the consolidated balance sheets.

For leases in effect at January 1, 2019 and for leases commencing thereafter, the Company recognizes a lease liability and a right-of-use asset, based on the present value of lease payments over the lease term. The discount rate used in determining present value was the Company's incremental borrowing rate which is the FHLB fixed advance rate based on the remaining lease term as of January 1, 2019, or the commencement date for leases subsequently entered into.

The following table contains supplemental balance sheet information related to leases (dollars in thousands):

	September 30, 2024			September 30, 2023			December 31, 2023
Operating lease right-of-use assets	$	14,560		$	14,192		$	14,306
Operating lease liabilities		14,873			14,503			14,615
Weighted-average remaining lease term (in years)		4.9			5.0		4.9
Weighted-average discount rate		3.18	%		2.75	%		3.21	%

Certain of the Company's leases contain options to renew the lease; however, not all renewal options are included in the calculation of lease liabilities as they are not reasonably certain to be exercised. The Company's leases do not contain residual value guarantees or material variable lease payments. The Company does not have any other material restrictions or covenants imposed by leases that would impact the Company's ability to pay dividends or cause the Company to incur additional financial obligations.

Maturities of lease liabilities are as follows (in thousands):

Year ending December 31,
2024	$	1,124
2025		3,097
2026		2,916
2027		2,687
2028		2,076
Thereafter		4,851
Total lease payments		16,751
Less imputed interest		(1,878	)
Total lease liability	$	14,873

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The components of lease expense for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Operating lease cost	$	885		$	870		$	2,553		$	2,448
Short-term lease cost		23			24			89			51
Variable lease cost		216			163			572			577
Total lease cost		1,124			1,057			3,214			3,076
Income from subleases		(110	)		(94	)		(317	)		(281	)
Net lease cost	$	1,014		$	963		$	2,897		$	2,795

As the Company elected not to separate lease and non-lease components, the variable lease cost primarily represents variable payment such as common area maintenance and copier expense. The Company does not have any material sub-lease agreements. Cash paid for amounts included in the measurement of lease liabilities was (in thousands):

	September 30, 2024		September 30, 2023
Operating cash flows from operating leases	$	2,502	$	2,414

Note 10 – Derivatives

The Company utilizes an interest rate swap, designated as a fair value hedge, to mitigate the risk of changing interest rates on the fair value of a fixed rate commercial real estate loan. For derivative instruments that are designed and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting loss or gain in the hedged asset attributable to the hedged risk, is recognized in current earnings.

Derivatives Designated as Hedging Instruments

The following table provides the outstanding notional balances and fair values of outstanding derivatives designated as hedging instruments as of September 30, 2024 and December 31, 2023 (in thousands):

	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
September 30, 2024
Fair value hedges:
Interest rate swap agreements	Other liabilities	4.6	$	12,662	$	(1,755	)
December 31, 2023
Fair value hedges:
Interest rate swap agreements	Other liabilities	5.3	$	12,976	$	(2,217	)

The effects of the fair value hedges on the Company's income statement during the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):

		Three months ended					Nine months ended
		September 30,					September 30,
Derivative	Location of Gain (Loss) on Derivatives	2024			2023		2024			2023
Interest rate swap agreements	Interest income on loans	$	(539	)	$	226	$	(364	)	$	264

		Three months ended					Nine months ended
		September 30,					September 30,
Derivative	Location of Gain (Loss) on Hedged Items	2024		2023			2024		2023
Interest rate swap agreements	Interest income on loans	$	539	$	(226	)	$	364	$	(264	)

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As of September 30, 2024, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustment for fair value hedges (in thousands):

Line Item in the Balance Sheet in Which the Hedge Item is Included	Carrying Amount of the Hedged Asset		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
Loans	$	12,078	$	(585	)

Derivatives Not Designated as Hedging Instruments

The following amounts represent the notional amounts and gross fair value of derivative contracts not designated as hedging instruments outstanding during the nine months ended September 30, 2024 (dollars in thousands):

September 30, 2024	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
Interest rate swap agreements	Other assets	4.2	$	29,389	$	2,339
Interest rate swap agreements	Other liabilities	4.2		29,389		(2,339	)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis is intended to provide a better understanding of the consolidated financial condition and results of operations of the Company and its subsidiaries as of, and for the three and nine months ended September 30, 2024 and 2023. This discussion and analysis should be read in conjunction with the consolidated financial statements, related notes and selected financial data appearing elsewhere in this report.

Forward-Looking Statements

This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid, are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, the possibility that any of the anticipated benefits of the merger between First Mid and Blackhawk will not be realized or will not be realized within the expected time period; changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

Overview

This overview of management’s discussion and analysis highlights selected information in this document and may not contain all the information that is important to you. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources, and critical accounting estimates which have an impact on the Company’s financial condition and results of operations you should carefully read this entire document.

Net income was $59.7 million and $50.9 million for the nine months ended September 30, 2024 and 2023, respectively. Diluted net income per common share was $2.49 and $2.40 for the nine months ended September 30, 2024 and 2023, respectively.

The following table shows the Company’s annualized performance ratios for nine months ended September 30, 2024 and 2023,

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compared to the performance ratios for the year ended December 31, 2023:

	Nine months ended						Year ended
	September 30, 2024			September 30, 2023			December 31, 2023
Return on average assets		1.05	%		0.99	%		0.97	%
Return on average common equity		9.89	%		10.23	%		10.10	%
Average equity to average assets		10.61	%		9.62	%		9.61	%

Total assets were $7.6 billion at September 30, 2024, compared to $7.6 billion as of December 31, 2023. From December 31, 2023 to September 30, 2024, cash and cash equivalents increased $21.1 million, net loan balances increased $30.8 million and investment securities decreased $55.7 million. Net loan balances were $5.5 billion at September 30, 2024 compared to $5.5 billion at December 31, 2023.

Net interest margin, on a tax equivalent basis, defined as net interest income divided by average interest-earning assets, was 3.32% for the nine months ended September 30, 2024, up from 2.95% for the same period in 2023. This increase was primarily due to an increase in earning asset yields partially offset by increased rates on interest-bearing deposits and borrowings. Net interest income before the provision for loan losses was $169.8 million compared to net interest income of $136.0 million for the same period in 2023. The increase in net interest income was primarily due to the acquisition of Blackhawk Bank during the third quarter of 2023 and increased net interest margin as mentioned above.

Total non-interest income of $69.9 million increased $4.9 million or 7.5% from $65.0 million for the same period last year. The increase in non-interest income resulted primarily from an increase in insurance commissions, wealth management revenues, and income generated from former Blackhawk Bank customers partially offset by a decrease in bank owned life insurance income and a decrease in the gain or loss on securities.

Total non-interest expense of $158.7 million increased $30.0 million or 23.3% from $128.7 million for the same period last year. The increase was primarily due to the acquisition of Blackhawk Bank during the third quarter of 2023 and the related amortization of intangibles and increased size of the bank causing increased expenses.

Following is a summary of the factors that contributed to the changes in net income (in thousands):

	Change in Net Income
	2024 versus 2023
	Three months ended			Nine months ended
	September 30, 2024			September 30, 2024
Net interest income	$	7,100		$	33,777
Provision for credit losses		4,645			3,560
Other income, including securities transactions		(30	)		4,905
Other expenses		(6,837	)		(29,971	)
Income taxes		(513	)		(3,405	)
Increase in net income	$	4,365		$	8,866

Credit quality is an area of importance to the Company. Total nonperforming loans were $18.2 million at September 30, 2024, compared to $21.3 million at September 30, 2023 and $20.1 million at December 31, 2023. See the discussion under the heading “Loan Quality and Allowance for Loan Losses” for a detailed explanation of these balances. Repossessed asset balances totaled $1.8 million at September 30, 2024 compared to $2.3 million at September 30, 2023 and $1.2 million at December 31, 2023.

The Company’s provision for credit losses for the nine months ended September 30, 2024 and 2023 was $2.0 million and $5.6 million, respectively. Total loans past due 30 days or more were 0.39% of loans at September 30, 2024 compared to 0.23% at September 30, 2023, and 0.26% of loans at December 31, 2023. Loans secured by both commercial and residential real estate comprised approximately 68.8% of the loan portfolio as of September 30, 2024 and 68.9% as of December 31, 2023.

The Company’s capital position remains strong, and the Company has consistently maintained regulatory capital ratios above the “well-capitalized” standards. The Company’s Tier 1 capital to risk weighted assets ratio calculated under the regulatory risk-based capital requirements at September 30, 2024 and 2023 and December 31, 2023 was 12.70%, 10.19% and 12.02%, respectively. The Company’s total capital to risk weighted assets ratio calculated under the regulatory risk-based capital requirements at September 30, 2024 and 2023, and December 31, 2023 was 15.24%, 12.60% and 14.84%, respectively. The increase in Tier 1 capital and total to risk weighted assets ratio from December 31, 2023 was primarily due to net income less dividends declared for the period increasing equity and a decrease in risk weighted assets related to a reallocation of the Company's balance sheet resulting in lower risk weighted assets such as cash on hand increasing and investment securities decreasing.

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On March 27, 2020, the federal banking regulatory agencies, issued an interim final rule which provided an option to delay the estimated impact on regulatory capital of ASU 2016-13, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13, as well as 25% of the quarterly increases in the allowance for credit losses subsequent to adoption of ASU 2016-13 ("CECL adjustments"), was be delayed for two years. The cumulative amount of these adjustments is being phased out of the regulatory capital calculation over a three-year period, with 75% of the adjustments included in 2022, 50% of the adjustments included in 2023 and 25% of the adjustments included in 2024. After five years, the temporary delay of ASU 2016-13 adoption will be fully reversed. The Company has elected this option.

The Company’s liquidity position remains sufficient to fund operations and meet the requirements of borrowers, depositors, and creditors. The Company maintains various sources of liquidity to fund its cash needs. See the discussion under the heading “Liquidity” for a full listing of sources and anticipated significant contractual obligations.

The Company enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include lines of credit, letters of credit and other commitments to extend credit. The total outstanding commitments at September 30, 2024 and 2023, were $1.4 billion and $1.1 billion, respectively.

Federal Deposit Insurance Corporation Insurance Coverage. As FDIC-insured institutions, First Mid Bank is required to pay deposit insurance premium assessments to the FDIC. Several requirements with respect to the FDIC insurance system have affected results, including insurance assessment rates.

The Company expensed $2.6 million and $2.3 million for the assessment during the first nine months of 2024 and 2023, respectively.

Critical Accounting Policies and Use of Significant Estimates

The Company has established various accounting policies that govern the application of U.S. generally accepted accounting principles in the preparation of the Company’s consolidated financial statements. The significant accounting policies of the Company are described in the footnotes to the consolidated financial statements included in the Company’s 2023 Annual Report on Form 10-K. Certain accounting policies involve significant judgments and assumptions by management that have a material impact on the carrying value of certain assets and liabilities; management considers such accounting policies to be critical accounting policies. The judgments and assumptions used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions made by management, actual results could differ from these judgments and assumptions, which could have a material impact on the carrying values of assets and liabilities and the results of operations of the Company.

Investment in Debt and Equity Securities. The Company classifies its investments in debt and equity securities as either held-to-maturity or available-for-sale in accordance with Statement of Financial Accounting Standards (SFAS) No. 115, “Accounting for Certain Investments in Debt and Equity Securities,” which was codified into ASC 320. Securities classified as held-to-maturity are recorded at amortized cost. Available-for-sale securities are carried at fair value. Fair value calculations are based on quoted market prices when such prices are available. If quoted market prices are not available, estimates of fair value are computed using a variety of techniques, including extrapolation from the quoted prices of similar instruments or recent trades for thinly traded securities, fundamental analysis, or through obtaining purchase quotes. Due to the subjective nature of the valuation process, it is possible that the actual fair values of these investments could differ from the estimated amounts, thereby affecting the financial position, results of operations and cash flows of the Company.

If the estimated value of investments is less than the cost or amortized cost, the Company evaluates whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. If such an event or change has occurred and the Company determines that the impairment is other-than-temporary, a further determination is made as to the portion of impairment that is related to credit loss. The impairment of the investment that is related to the credit loss is expensed in the period in which the event or change occurred. The remainder of the impairment is recorded in other comprehensive income (loss).

Loans. Loans are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase discounts and premiums, fair value hedge accounting adjustments and deferred loan fees and costs. Accrued interest is reported separately and is included in interest receivable in the consolidated balance sheets.

Allowance for Credit Losses - Loans. The Company believes the allowance for credit losses for loans is the critical accounting policy that requires the most significant judgments and assumptions used in the preparation of its consolidated financial statements. The allowance for credit losses for loans represents the best estimate of losses inherent in the existing loan portfolio. An estimate of potential losses inherent in the loan portfolio are determined and an allowance for those losses is established by considering factors including historical loss rates, expected cash flows and estimated collateral values. In assessing these factors, the Company uses

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relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts.

To determine the allowance, the loan portfolio is segmented based on similar risk characteristics. The allowance for credit losses is estimated using a discounted cash flow (DCF) methodology. The DCF projects future cash flows over the life of the loan portfolio. Probability of default (PD) and loss given default (LGD) are key components in calculating expected losses in this model. The PD is forecasted using a regression model that determines the likelihood of default with a forward-looking forecast of unemployment rates. The LGD is the percentage of defaulted loans that is ultimately charged off. The allowance is calculated as the net present value of the expected cash flows less the amortized cost basis of the loans. Prior to 2022, the allowance for credit losses was measured on a collective (pool) basis for non-individually evaluated loans with similar risk characteristics. Historical credit loss experience provided the basis for the estimate of expected credit losses. Adjustments to expected losses are made using qualitative factors for relevant to each loan segment including merger & acquisition activity, economic conditions, changes in policies, procedures & underwriting, and concentrations. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

The Company estimates the appropriate level of allowance for credit losses for individually evaluated loans by evaluating them separately. A specific allowance is assigned to an impaired loan when expected cash flows or collateral are less than the carrying amount of the loan.

Allowance for Credit Losses - Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period that the Company is exposed to credit risk via a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is included in other liabilities in the consolidated balance sheets.

Other Real Estate Owned. Other real estate owned acquired through loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for loan losses. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined that fair value temporarily declines subsequent to foreclosure, a valuation allowance is recorded through noninterest expense.

Operating costs associated with the assets after acquisition are also recorded as noninterest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other noninterest expense.

Mortgage Servicing Rights. The Company has elected to record mortgage servicing rights under the amortization method. Using this method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type.

Impairment is recognized through a valuation reserve, to the extent that fair value is less than the carrying amount of the servicing assets. Fair value in excess of the carrying amount of servicing assets is not recognized.

Deferred Income Tax Assets/Liabilities. The Company’s net deferred income tax asset arises from differences in the dates that items of income and expense enter our reported income and taxable income. Deferred tax assets and liabilities are established for these items as they arise. From an accounting standpoint, deferred tax assets are reviewed to determine if they are realizable based on the historical level of taxable income, estimates of future taxable income and the reversals of deferred tax liabilities. In most cases, the realization of the deferred tax asset is based on future profitability. If the Company were to experience net operating losses for tax purposes in a future period, the realization of deferred tax assets would be evaluated for a potential valuation reserve.

Additionally, the Company reviews its uncertain tax positions annually under FASB Interpretation No. 48 (FIN No. 48), “Accounting for Uncertainty in Income Taxes,” codified within ASC 740. An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be recognized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. A significant amount of judgment is applied to determine both whether the tax position meets the "more likely than not" test as well as to determine the largest amount of tax benefit that is greater than 50% likely to be recognized. Differences between the position taken by management and that of taxing authorities could result in a reduction of a tax benefit or increase to tax liability, which could adversely affect future income tax expense.

Impairment of Goodwill and Intangible Assets. Core deposit and customer relationships, which are intangible assets with a finite life, are recorded on the Company’s consolidated balance sheets. These intangible assets were capitalized as a result of past acquisitions and are being amortized over their estimated useful lives of up to 15 years. Core deposit intangible assets, with finite

43

lives will be tested for impairment when changes in events or circumstances indicate that its carrying amount may not be recoverable. Core deposit intangible assets were tested for impairment as of September 30, 2024 as part of the goodwill impairment test and no impairment was identified.

As a result of the Company’s acquisition activity, goodwill, an intangible asset with an indefinite life, is reflected on the consolidated balance sheets. Goodwill is evaluated for impairment annually, unless there are factors present that indicate a potential impairment, in which case, the goodwill impairment test is performed more frequently than annually.

Fair Value Measurements. The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Company estimates the fair value of a financial instrument using a variety of valuation methods. Where financial instruments are actively traded and have quoted market prices, quoted market prices are used for fair value. When the financial instruments are not actively traded, other observable market inputs, such as quoted prices of securities with similar characteristics, may be used, if available, to determine fair value. When observable market prices do not exist, the Company estimates fair value. The Company’s valuation methods consider factors such as liquidity and concentration concerns. Other factors such as model assumptions, market dislocations, and unexpected correlations can affect estimates of fair value. Imprecision in estimating these factors can impact the amount of revenue or loss recorded.

SFAS No. 157, “Fair Value Measurements”, which was codified into ASC 820, establishes a framework for measuring the fair value of financial instruments that considers the attributes specific to particular assets or liabilities and establishes a three-level hierarchy for determining fair value based on the transparency of inputs to each valuation as of the fair value measurement date.

The three levels are defined as follows:

•Level 1 — quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2 — inputs include quoted prices for similar assets and liabilities in active markets, quoted prices of identical or similar assets or liabilities in markets that are not active, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

•Level 3 — inputs that are unobservable and significant to the fair value measurement.

At the end of each quarter, the Company assesses the valuation hierarchy for each asset or liability measured. From time to time, assets or liabilities may be transferred within hierarchy levels due to changes in availability of observable market inputs to measure fair value at the measurement date. Transfers into or out of hierarchy levels are based upon the fair value at the beginning of the reporting period. A more detailed description of the fair values measured at each level of the fair value hierarchy can be found in Note 7 – Fair Value of Assets and Liabilities.

Results of Consolidated Operations

Net Interest Income

The largest source of revenue for the Company is net interest income. Net interest income represents the difference between total interest income earned on earning assets and total interest expense paid on interest-bearing liabilities. The amount of interest income is dependent upon many factors, including the volume and mix of earning assets, the general level of interest rates and the dynamics of changes in interest rates. The cost of funds necessary to support earning assets varies with the volume and mix of interest-bearing liabilities and the rates paid to attract and retain such funds.

Net interest income is the excess of interest received from earning assets over interest paid on interest-bearing liabilities. For analytical purposes, net interest income is presented on a full tax equivalent ("TE") basis in the table that follows. The federal statutory rate in effect of 21% for 2024 and 2023 was used. The TE analysis portrays the income tax benefits associated with the tax-exempt assets. The year-to-date net yield on interest-earning assets excluding the TE adjustments of $2.3 million and $2.3 million for 2024 and 2023, respectively were 3.26% and 2.90% at September 30, 2024 and 2023, respectively.

44

The Company’s average balances, fully tax equivalent interest income and interest expense, and rates earned or paid for major balance sheet categories are set forth for the three and nine months ended September 30, 2024 and 2023 in the following table (dollars in thousands):

	Three months ended September 30, 2024								Three months ended September 30, 2023
	Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-bearing deposits with other financial institutions	$	160,050		$	2,304		5.73	%	$	90,957		$	1,882		8.21	%
Federal funds sold		26			28		428.43	%		8,561			114		5.28	%
Certificates of deposit		3,415			39		4.54	%		2,152			16		2.95	%
Investment securities:
Taxable		873,865			5,241		2.40	%		1,004,994			7,352		2.93	%
Tax-exempt (1)		273,799			2,272		3.32	%		287,232			2,445		3.40	%
Loans net of unearned income (TE) (2)		5,545,915			82,382		5.91	%		5,199,885			69,397		5.29	%
Total earning assets		6,857,070			92,266		5.35	%		6,593,781			81,206		4.89	%
Cash and due from banks		98,906								125,014
Premises and equipment		101,576								97,474
Other assets		594,609								524,478
Allowance for credit losses		(68,646	)							(64,636	)
Total assets	$	7,583,515							$	7,276,111
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	2,999,374		$	17,563		2.33	%	$	2,646,134		$	12,740		1.91	%
Savings deposits		663,494			265		0.16	%		669,930			190		0.11	%
Time deposits		1,065,176			10,513		3.93	%		1,081,978			9,117		3.34	%
Total interest-bearing deposits		4,728,044			28,341		2.38	%		4,398,042			22,047		1.99	%
Securities sold under agreements to repurchase		202,973			1,444		2.83	%		212,644			1,625		3.03	%
FHLB advances		238,723			2,194		3.66	%		486,738			4,761		3.88	%
Federal funds purchased		—			1		—	%		—			—		—	%
Subordinated Debt		97,177			1,092		4.47	%		105,332			1,028		3.87	%
Junior subordinated debt		24,195			567		9.32	%		19,258			545		11.23	%
Total borrowings		563,068			5,298		3.74	%		823,972			7,947		3.83	%
Total interest-bearing liabilities		5,291,112			33,639		2.53	%		5,222,014			29,994		2.28	%
Non interest-bearing demand deposits		1,415,861					2.00	%		1,293,422					1.83	%
Other liabilities		47,848								65,265
Stockholders' equity		828,694								695,410
Total liabilities and equity	$	7,583,515							$	7,276,111
Net interest income				$	58,627							$	51,212
Net interest spread							2.82	%							2.61	%
Impact of non interest-bearing funds							0.53	%							0.45	%
TE net yield on interest-bearing assets							3.35	%							3.06	%

45

	Nine months ended September 30, 2024								Nine months ended September 30, 2023
	Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-bearing deposits with other financial institutions	$	153,815		$	6,378		5.53	%	$	47,522		$	2,547		7.17	%
Federal funds sold		380			53		18.60	%		8,116			297		4.90	%
Certificates of deposit		2,903			102		4.70	%		1,886			44		3.13	%
Investment securities:
Taxable		887,647			16,128		2.42	%		972,346			17,785		2.44	%
Tax-exempt (1)		274,739			7,238		3.51	%		280,675			7,365		3.50	%
Loans net of unearned income (TE) (2)		5,533,151			239,934		5.79	%		4,923,327			184,468		5.01	%
Total earning assets		6,852,635			269,833		5.26	%		6,233,872			212,506		4.56	%
Cash and due from banks		99,239								131,876
Premises and equipment		101,556								92,624
Other assets		608,385								488,314
Allowance for credit losses		(68,545	)							(60,956	)
Total assets	$	7,593,270							$	6,885,730
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	3,019,098		$	51,461		2.28	%	$	2,489,962		$	31,862		1.71	%
Savings deposits		686,383			628		0.12	%		643,343			549		0.11	%
Time deposits		1,023,647			28,686		3.74	%		922,944			18,983		2.75	%
Total interest-bearing deposits		4,729,128			80,775		2.28	%		4,056,249			51,394		1.69	%
Securities sold under agreements to repurchase		224,345			5,115		3.05	%		223,396			4,811		2.88	%
FHLB advances		248,785			6,756		3.63	%		504,409			13,719		3.64	%
Federal funds purchased		—			1		—	%		256			9		4.70	%
Subordinated debt		103,311			3,466		4.48	%		98,208			3,003		4.09	%
Junior subordinated debentures		24,140			1,646		9.11	%		19,356			1,314		9.08	%
Total borrowings		600,581			16,984		3.78	%		845,625			22,844		3.61	%
Total interest-bearing liabilities		5,329,709			97,759		2.45	%		4,901,874			74,238		2.02	%
Non interest-bearing demand deposits		1,407,721					1.94	%		1,265,188					1.61	%
Other liabilities		50,502								55,994
Stockholders' equity		805,338								662,674
Total liabilities and equity	$	7,593,270							$	6,885,730
Net interest income				$	172,074							$	138,268
Net interest spread							2.81	%							2.54	%
Impact of non interest-bearing funds							0.51	%							0.41	%
TE net yield on interest-earning assets							3.32	%							2.95	%

1.The tax-exempt income is shown on a tax equivalent basis.

2.Nonaccrual loans and loans held for sale are included in the average balances. Balances are net of unaccreted discount related to loans acquired.

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Changes in net interest income may also be analyzed by segregating the volume and rate components of interest income and interest expense. The following table summarizes the approximate relative contribution of changes in average volume and interest rates to changes in net interest income for the three and nine months ended September 30, 2024, compared to the same period in 2023 (in thousands):

	Three months ended September 30, 2024 compared to 2023 Increase/(Decrease)									Nine months ended September 30, 2024 compared to 2023 Increase/(Decrease)
	Total									Total
	Change			Volume (1)			Rate (1)			Change			Volume (1)			Rate (1)
Earning assets:
Interest-bearing deposits	$	422		$	3,530		$	(3,108	)	$	3,831		$	4,889		$	(1,058	)
Federal funds sold		(86	)		(892	)		806			(244	)		(627	)		383
Certificates of deposit investments		23			12			11			58			30			28
Investment securities:
Taxable		(2,111	)		(885	)		(1,226	)		(1,657	)		(1,515	)		(142	)
Tax-exempt (2)		(173	)		(112	)		(61	)		(127	)		(156	)		29
Loans (2) (3)		12,985			4,703			8,282			55,466			24,576			30,890
Total interest income	$	11,060		$	6,356		$	4,704		$	57,327		$	27,197		$	30,130
Interest-bearing liabilities:
Interest-bearing deposits
Demand deposits	$	4,823		$	1,822		$	3,001		$	19,599		$	7,630		$	11,969
Savings deposits		75			(12	)		87			79			33			46
Time deposits		1,396			(919	)		2,315			9,703			2,257			7,446
Securities sold under agreements to repurchase		(181	)		(74	)		(107	)		304			20			284
FHLB advances		(2,567	)		(2,310	)		(257	)		(6,963	)		(6,926	)		(37	)
Federal funds purchased		1			—			1			(8	)		(4	)		(4	)
Subordinated debt		64			(400	)		464			463			163			300
Junior subordinated debentures		22			455			(433	)		332			327			5
Other debt		12			12			—			12			—			12
Total interest expense		3,645			(1,426	)		5,071			23,521			3,500			20,021
Net interest income	$	7,415		$	7,782		$	(367	)	$	33,806		$	23,697		$	10,109

1.Changes attributable to the combined impact of volume and rate have been allocated proportionately to the change due to volume and the change due to rate.

2.The tax-exempt income is shown on a tax-equivalent basis.

3.Nonaccrual loans have been included in the average balances.

Tax equivalent net interest income increased $33.8 million, or 24.4%, to $172.1 million for the nine months ended September 30, 2024, from $138.3 million for the same period in 2023. Net interest income and net interest margin increased primarily due to an increase in earning asset yields partially offset by the increase in deposit and borrowing rates.

For the nine months ended September 30, 2024, average earning assets increased $618.8 million, or 9.9%, and average interest-bearing liabilities increased $427.8 million or 8.7% compared with average balances for the same period in 2023.

The changes in average balances for these periods are shown below:

•Average interest-bearing deposits with other financial institutions increased $106.3 million or 223.7%.

•Average federal funds sold decreased $7.7 million or 95.3%.

•Average certificates of deposits investments increased $1.0 million or 53.9%.

•Average loans increased by $609.8 million or 12.4%.

•Average securities decreased by $90.6 million or 7.2%.

•Average interest-bearing customer deposits increased by $672.9 million or 16.6%.

•Average securities sold under agreements to repurchase increased by $0.9 million or 0.4%.

•Average borrowings and other debt decreased by $246.0 million or 39.5%.

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•Net interest margin increased to 3.32% for the first nine months of 2024 from 2.95% for the first nine months of 2023.

Provision for Loan Losses

The provision for credit losses for the nine months ended September 30, 2024 and 2023 was $2.0 million and $5.6 million, respectively. Net charge offs were $1.9 million for the nine months ended September 30, 2024, compared to net charge offs of $0.2 million for September 30, 2023. Nonperforming loans were $18.2 million and $21.3 million as of September 30, 2024 and 2023, respectively. For information on loan loss experience and nonperforming loans, see discussion under the “Nonperforming Loans” and “Loan Quality and Allowance for Loan Losses” sections below.

Other Income

An important source of the Company’s revenue is other income. The following table sets forth the major components of other income for the three and nine months ended September 30, 2024 and 2023 (in thousands):

	Three months ended September 30,											Nine months September 30,
	2024			2023		$ Change			% Change			2024			2023		$ Change			% Change
Wealth management revenues	$	5,816		$	4,940	$	876			17.7	%	$	16,543		$	15,795	$	748			4.7	%
Insurance commissions		6,003			5,199		804			15.5	%		21,747			19,416		2,331			12.0	%
Service charges		3,121			2,994		127			4.2	%		9,304			7,583		1,721			22.7	%
Security gains (losses), net		(277	)		3,389		(3,666	)		-108.2	%		(433	)		3,337		(3,770	)		-113.0	%
Mortgage banking revenue, net		1,109			846		263			31.1	%		2,853			1,328		1,525			114.8	%
ATM/debit card revenue		4,267			3,766		501			13.3	%		12,603			10,114		2,489			24.6	%
Bank owned life insurance		1,196			1,024		172			16.8	%		3,509			3,854		(345	)		-9.0	%
Other		1,788			895		893			99.8	%		3,797			3,591		206			5.7	%
Total other income	$	23,023		$	23,053	$	(30	)		-0.1	%	$	69,923		$	65,018	$	4,905			7.5	%

Following are explanations of the changes in these other income categories for the three and nine months ended September 30, 2024 compared to the same period in 2023:

•Wealth management revenues increased for the nine month period due to increased brokerage and trust fees, partially offset by less agricultural services fee incomes.

•Insurance commissions increased primarily due to organic growth and the acquisitions of PGIB and MRIG during the second quarter of 2023 and third quarter of 2024, respectively.

•Fees from service charges increased during the first nine months of 2024 primarily due to the acquisition of Blackhawk Bank in the third quarter of 2023.

•Net losses from the sale of securities during 2024 were $0.4 million compared to net gains in 2023 of $3.3 million. The Company sold 37 securities during the nine months ended September 30, 2024 with the intent to replace them with higher yielding assets and restructured the balance sheet of Blackhawk Bank after the acquisition in 2023.

•The increase in mortgage banking income was due to an increase from loans sold in the secondary market and the acquisition of Blackhawk Bank in the third quarter of 2023. First Mid Bank generally releases the servicing rights on loans sold into the secondary market.

•$100.5 million (representing 579 loans) for the nine months ended September 30, 2024.

•$45.5 million (representing 318 loans) for the nine months ended September 30, 2023.

•Revenue from ATMs and debit cards increased due to an increase in activity during the period and the acquisition of Blackhawk Bank in the third quarter of 2023.

•Bank owned life insurance income decreased approximately $0.3 million during the first nine months of 2024 compared to the same period in 2023 primarily due to a claim payout in 2023.

•Other income increased primarily due to gains recognized on the repayment of the Company's subordinated debentures being partially offset by late charges on loans being presented as interest income starting in 2024.

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Other Expense

The following table sets forth the major components of other expense for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):

	Three months ended September 30,										Nine months ended September 30,
	2024		2023		$ Change			% Change			2024		2023		$ Change			% Change
Salaries and employee benefits	$	31,565	$	25,422	$	6,143			24.2	%	$	92,177	$	75,037	$	17,140			22.8	%
Net occupancy and equipment expense		8,055		6,929		1,126			16.3	%		23,122		18,969		4,153			21.9	%
Net other real estate owned expense		107		902		(795	)		-88.1	%		171		1,062		(891	)		-83.9	%
FDIC insurance		829		785		44			5.6	%		2,600		2,324		276			11.9	%
Amortization of intangible assets		3,405		2,568		837			32.6	%		10,242		5,567		4,675			84.0	%
Stationery and supplies		482		335		147			43.9	%		1,243		942		301			32.0	%
Legal and professional		2,573		1,844		729			39.5	%		7,558		5,314		2,244			42.2	%
Marketing and donations		836		764		72			9.4	%		2,512		2,326		186			8.0	%
ATM/debit card expense		1,869		1,751		118			6.7	%		4,341		3,990		351			8.8	%
Other operating expenses		4,212		5,796		(1,584	)		-27.3	%		14,720		13,184		1,536			11.7	%
Total other expense	$	53,933	$	47,096	$	6,837			14.5	%	$	158,686	$	128,715	$	29,971			23.3	%

Following are explanations for the changes in these other expense categories for the three and nine months ended September 30, 2024 compared to the same period in 2023:

•The increase in salaries and employee benefits, the largest component of other expense, is primarily due to the acquisition of Blackhawk Bank and regularly scheduled annual raises occurring during the quarter ended March 31, 2024. This was partially offset by the Company's efficiency improvement efforts. There were 1,207 and 1,224 full-time equivalent employees at September 30, 2024 and 2023, respectively.

•The increase in occupancy and equipment expense was primarily due to the acquisition of Blackhawk Bank during the third quarter of 2023.

•The decrease in net other real estate owned expense for the nine month period was primarily due to significantly less write downs of other real estate owned compared to the same period in 2023.

•Expense for amortization of intangible assets increased for the nine months ended September 30, 2024 compared to 2023. Core deposit intangibles and mortgage servicing rights increased due to the acquisition of Blackhawk Bank during the third quarter of 2023. In addition, PGIB was acquired in the second quarter of 2023 and MRIG was acquired in the third quarter of 2024.

•The increase in all other operating expenses during the first nine months of 2024 was primarily due to the acquisition of Blackhawk Bank during the third quarter of 2023.

Income Taxes

Total income tax expense amounted to $19.3 million (24.4% effective tax rate) for the nine months ended September 30, 2024, compared to $15.9 million (23.7% effective tax rate) for the same period in 2023. The increase in effective rate is primarily related to a one time increase in income tax expense required because of the State of Illinois income apportionment law change that occurred during the quarter ended June 30, 2024.

The Company files U.S. federal and state of Florida, Illinois, Indiana, Missouri, Texas, and Wisconsin income tax returns. As of September 30, 2024, the Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2020.

49

Analysis of Consolidated Balance Sheets

Securities

The Company’s overall investment objectives are to insulate the investment portfolio from undue credit risk, maintain adequate liquidity, insulate capital against changes in market value and control excessive changes in earnings while optimizing investment performance. The types and maturities of securities purchased are primarily based on the Company’s current and projected liquidity and interest rate sensitivity positions. The following table sets forth the amortized cost of the available-for-sale and held-to-maturity securities as of September 30, 2024 and December 31, 2023 (dollars in thousands):

	September 30, 2024					December 31, 2023
	Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	212,259		1.28	%	$	237,875		1.28	%
Obligations of states and political subdivisions		326,751		2.28	%		337,835		2.31	%
Mortgage-backed securities: GSE residential		668,554		1.91	%		714,216		1.91	%
Other securities		69,395		4.13	%		76,081		3.65	%
Total securities	$	1,276,959		2.01	%	$	1,366,007		2.00	%

At September 30, 2024, the Company’s investment portfolio decreased by $89.0 million from December 31, 2023 primarily due to the sale of 37 securities, paydowns, calls and maturities of various securities. When purchasing investment securities, the Company considers its overall liquidity and interest rate risk profile, as well as the adequacy of expected returns relative to the risks assumed. The table below presents the credit ratings as of September 30, 2024 for investment securities (in thousands):

					Average Credit Rating of Fair Value at September 30, 2024 (1)
	Amortized Cost		Estimated Fair Value		AAA		AA +/-		A +/-		BBB +/-		< BBB -		Not rated
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	212,259	$	194,169	$	27,296	$	166,536	$	—	$	—	$	—	$	337
Obligations of state and political subdivisions		326,751		280,444		37,063		197,128		43,975		—		—		2,278
Mortgage-backed securities (2)		668,554		576,849		—		—		—		—		—		576,849
Other securities		67,097		64,090		—		6,397		18,019		6,732		—		32,942
Total available-for-sale	$	1,274,661	$	1,115,552	$	64,359	$	370,061	$	61,994	$	6,732	$	—	$	612,406
Held-to-maturity:
Other securities		2,298		2,298		—		—		—		—		—		2,298
Total held-to-maturity	$	2,298	$	2,298	$	—	$	—	$	—	$	—	$	—	$	2,298
Equity securities:
Federal Agricultural Mtg Corp		85		486		—		—		—		—		—		486
Midwest Independent BankersBank		150		208		—		—		—		—		—		208
Equalize Community Development Fund		3,731		3,730		—		—		—		—		—		3,730
Total equity securities	$	3,966	$	4,424	$	—	$	—	$	—	$	—	$	—	$	4,424

1.Credit ratings reflect the lowest current rating assigned by a nationally recognized credit rating agency.

2.Mortgage-backed securities include mortgage-backed securities (MBS) and collateralized mortgage obligation (CMO) issues from the following government sponsored enterprises: FHLMC, FNMA, GNMA and FHLB. While MBS and CMOs are no longer explicitly rated by credit rating agencies, the industry recognizes that they are backed by agencies which have an implied government guarantee.

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Loans

The loan portfolio is the largest category of the Company’s earning assets. The following table summarizes the composition of the loan portfolio at amortized cost, including loans held for sale, as of September 30, 2024 and December 31, 2023 (in thousands):

	September 30, 2024					December 31, 2023
	Amortized Cost		% Outstanding Loans			Amortized Cost		% Outstanding Loans
Construction and land development	$	190,857		3.4	%	$	205,077		3.7	%
Agricultural real estate		384,620		6.9	%		391,132		7.0	%
1-4 family residential properties		505,342		9.0	%		542,469		9.7	%
Multifamily residential properties		338,167		6.0	%		319,129		5.7	%
Commercial real estate		2,440,120		43.5	%		2,384,704		42.8	%
Loans secured by real estate		3,859,106		68.8	%		3,842,511		68.9	%
Agricultural loans		233,414		4.2	%		196,272		3.5	%
Commercial and industrial loans		1,283,631		22.9	%		1,266,159		22.7	%
Consumer loans		63,222		1.1	%		91,014		1.6	%
All other loans		175,218		3.0	%		184,609		3.3	%
Total loans	$	5,614,591		100.0	%	$	5,580,565		100.0	%

Loan balances increased $34.0 million, or 0.6%. The increase was primarily due to various types of commercial loans increasing and increased seasonal demand for agricultural operating loans partially offset by decreases in consumer loans and agricultural, construction, and 1-4 family residential properties real estate loans decreasing. The balance of real estate loans held for sale, included in the balances shown above, amounted to $8.1 million and $5.0 million as of September 30, 2024 and December 31, 2023, respectively.

Commercial and commercial real estate loans generally involve higher credit risks than residential real estate and consumer loans. Because payments on loans secured by commercial real estate or equipment are often dependent upon the successful operation and management of the underlying assets, repayment of such loans may be influenced to a great extent by conditions in the market or the economy. The Company does not have any sub-prime mortgages or credit card loans outstanding which are also generally considered to be higher credit risk.

Loans are geographically dispersed throughout Illinois, the St. Louis Metro area, central Missouri, Texas, and southern Wisconsin. While these regions have experienced some economic stress during 2024 and 2023, the Company does not consider these locations high risk areas since these regions have not experienced the significant changes in real estate values seen in some other areas in the United States.

First Mid Bank does not have a concentration, as defined by the regulatory agencies, in construction and land development loans or commercial real estate loans as a percentage of the sum of Tier 1 Capital and allowance for loan loss for the periods shown above. At September 30, 2024 and December 31, 2023, First Mid Bank did have industry loan concentrations that exceeded 25% of the sum of Tier 1 Capital and allowance for loan loss in the following industries (dollars in thousands):

	September 30, 2024					December 31, 2023
	Principal balance		% Outstanding  Loans			Principal balance		% Outstanding Loans
Other grain farming	$	508,245		9.05	%	$	472,456		8.47	%
Lessors of non-residential buildings		1,074,615		19.14	%		1,086,152		19.46	%
Lessors of residential buildings and dwellings		559,710		9.97	%		541,858		9.71	%
Hotels and motels		226,689		4.04	%		215,386		3.86	%

First Mid Bank had no further industry loan concentrations in excess of 25% of the sum of Tier 1 Capital and allowance for loan loss.

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The following table presents the balance of loans outstanding as of September 30, 2024, by contractual maturities (in thousands):

	Maturity (1)
	One year or less (2)		Over 1 through 5 years		Over 5 years		Total
Construction and land development	$	44,952	$	57,994	$	87,911	$	190,857
Agricultural real estate		33,916		125,983		224,721		384,620
1-4 family residential properties		25,235		101,083		379,024		505,342
Multifamily residential properties		30,382		240,422		67,363		338,167
Commercial real estate		208,213		1,448,083		783,824		2,440,120
Loans secured by real estate		342,698		1,973,565		1,542,843		3,859,106
Agricultural loans		185,910		45,330		2,174		233,414
Commercial and industrial loans		434,414		583,312		265,905		1,283,631
Consumer loans		3,250		58,417		1,555		63,222
All other loans		27,810		21,166		126,242		175,218
Total loans	$	994,082	$	2,681,790	$	1,938,719	$	5,614,591

1.Based upon remaining contractual maturity.

2.Includes demand loans, past due loans and overdrafts.

As of September 30, 2024, loans with maturities over one year consisted of approximately $2.8 billion in fixed rate loans and approximately $1.8 billion in variable rate loans. The loan maturities noted above are based on the contractual provisions of the individual loans. The Company has no general policy regarding renewals and borrower requests, which are handled on a case-by-case basis.

Nonperforming Loans and Nonperforming Other Assets

Nonperforming loans include: (a) loans accounted for on a nonaccrual basis; (b) accruing loans contractually past due ninety days or more as to interest or principal payments; and (c) loans not included in (a) and (b) above which are defined as “modified”. Repossessed assets include primarily repossessed real estate and automobiles.

The Company’s policy is to discontinue the accrual of interest income on any loan for which principal or interest is ninety days past due. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal.

Restructured loans are loans on which, due to deterioration in the borrower’s financial condition, the original terms have been modified in favor of the borrower or either principal or interest has been forgiven. Repossessed assets represent property acquired as the result of borrower defaults on loans. These assets are recorded at estimated fair value, less estimated selling costs, at the time of foreclosure or repossession. Write-downs occurring at foreclosure are charged against the allowance for loan losses. On an ongoing basis, properties are appraised as required by market indications and applicable regulations. Write-downs for subsequent declines in value are recorded in non-interest expense in other real estate owned along with other expenses related to maintaining the properties.

The following table presents information concerning the aggregate amount of nonperforming loans and repossessed assets at September 30, 2024 and December 31, 2023 (dollars in thousands):

	September 30, 2024			December 31, 2023
Nonaccrual loans	$	17,148		$	18,832
Modified loans which are performing in accordance with revised terms		1,094			1,296
Total nonperforming loans		18,242			20,128
Repossessed assets		1,834			1,164
Total nonperforming loans and repossessed assets	$	20,076		$	21,292
Nonperforming loans to loans, before allowance for credit losses		0.33	%		0.36	%
Nonperforming loans and repossessed assets to loans, before allowance for credit losses		0.36	%		0.38	%

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The $1.7 million decrease in nonaccrual loans during 2024 resulted from the net of $3.4 million of loans put on nonaccrual status offset by $3.0 million of loans becoming current or paid-off, $1.0 million of loans transferred to other real estate and $1.1 million of loans charged off. The following table summarizes the composition of nonaccrual loans (dollars in thousands):

	September 30, 2024					December 31, 2023
	Balance		% of Total			Balance		% of Total
Construction and land development	$	6		—	%	$	—		—	%
Agricultural real estate		1,647		9.6	%		1,146		6.1	%
1-4 family residential properties		4,840		28.2	%		4,940		26.2	%
Commercial real estate		9,419		55.0	%		10,237		54.3	%
Loans secured by real estate		15,912		92.8	%		16,323		86.6	%
Commercial and industrial loans		979		5.7	%		1,931		10.3	%
Consumer loans		257		1.5	%		578		3.1	%
Total loans	$	17,148		100.0	%	$	18,832		100.0	%

Interest income that would have been reported if nonaccrual and restructured loans had been performing totaled $0.5 million and $0.2 million for the nine months ended September 30, 2024 and 2023, respectively.

The $0.7 million increase in repossessed assets during the 2024 resulted from $1.1 million of additional assets repossessed and $0.4 million repossessed assets sold, $47,000 writedowns, and no change in fair value premiums and discounts. The following table summarizes the composition of repossessed assets (dollars in thousands):

	September 30, 2024					December 31, 2023
	Balance		% of Total			Balance		% of Total
Construction and land development	$	1,084		59.1	%	$	1,130		97.1	%
1-4 family residential properties		221		12.1	%		33		2.8	%
Total real estate		1,305		71.2	%		1,163		99.9	%
Consumer loans		529		28.8	%		1		0.1	%
Total repossessed collateral	$	1,834		100.0	%	$	1,164		100.0	%

Repossessed assets sold during the first nine months of 2024 resulted in $17,000 net gain or loss of related to real estate asset sales and net gains of $6,000 related to other asset sales. The Company also recognized no deferred losses and recorded $47,000 writedowns on real estate properties owned. Repossessed assets sold during the same period in 2023 resulted in net gains of $0.1 million related to real estate asset sales and net losses of $21,000 related to other asset sales. The Company also recognized no deferred losses and recorded $1.1 million of writedowns on real estate properties owned.

Loan Quality and Allowance for Credit Losses

The allowance for credit losses represents management’s estimate of the reserve necessary to adequately account for probable losses existing in the current portfolio. The provision for loan losses is the charge against current earnings that is determined by management as the amount needed to maintain an adequate allowance for loan losses. In determining the adequacy of the allowance for loan losses, and therefore the provision to be charged to current earnings, management relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by management in evaluating the overall adequacy of the allowance include a migration analysis of the historical net loan losses by loan segment, the level and composition of nonaccrual, past due and renegotiated loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates.

Management reviews economic factors including the potential for reduced cash flow for commercial operating loans from reduction in sales or increased operating costs, decreased occupancy rates for commercial buildings, reduced levels of home sales for commercial land developments, the uncertainty regarding grain prices, increased operating costs for farmers, and increased levels of unemployment and bankruptcy impacting consumer’s ability to pay. Each of these economic uncertainties was taken into consideration in developing the level of the reserve. Management considers the allowance for loan losses a critical accounting policy.

Management recognizes there are risk factors that are inherent in the Company’s loan portfolio. All financial institutions face risk factors in their loan portfolios because risk exposure is a function of the business. The Company’s operations (and therefore its loans) are concentrated in Illinois, Missouri, Texas, and Wisconsin areas, where agriculture is the dominant industry. Accordingly, lending and other business relationships with agriculture-based businesses are critical to the Company’s success. At September 30, 2024, the

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Company’s loan portfolio included $618.4 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $508.2 million was concentrated in other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $29.9 million from $588.5 million at December 31, 2023 while loans concentrated in other grain farming increased $35.8 million from $472.5 million at December 31, 2023. While the Company adheres to sound underwriting practices, including collateralization of loans, any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio. In addition, the Company has $226.7 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific issues as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $1.1 billion of loans to lessors of non-residential buildings, and $559.7 million of loans to lessors of residential buildings and dwellings.

The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the Board of Directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation; however, limits well below the regulatory thresholds are generally observed. Most of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments.

The Company minimizes credit risk by adhering to sound underwriting and credit review policies. Management and the board of directors of the Company review these policies at least annually. Senior management is actively involved in business development efforts and the maintenance and monitoring of credit underwriting and approval. The loan review system and controls are designed to identify, monitor and address asset quality problems in an accurate and timely manner. The board of directors and management review the status of problem loans each month and formally determine a best estimate of the allowance for loan losses on a quarterly basis. In addition to internal policies and controls, regulatory authorities periodically review asset quality and the overall adequacy of the allowance for loan losses.

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Analysis of the allowance for credit losses as of September 30, 2024 and 2023, and of changes in the allowance for the three and nine months ended September 30, 2024 and 2023, is as follows (dollars in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Average loans outstanding, net of unearned income	$	5,545,915		$	5,199,885		$	5,533,151		$	4,923,327
Allowance-prior year end of period		68,312			58,719			68,675			59,093
Allowance - beginning of period		68,312			58,719			68,675			59,093
Charge-offs:
Construction and land development		—			—			—			14
1-4 family residential		42			21			143			77
Commercial real estate		451			—			451			25
Agricultural		—			132			261			408
Commercial and industrial		1			—			643			62
Consumer		840			368			1,640			995
Total charge-offs		1,334			521			3,138			1,581
Recoveries:
Construction and land development		5			—			5			—
1-4 family residential		88			91			237			193
Commercial real estate		9			16			175			347
Agricultural		25			3			25			13
Commercial and industrial		97			81			205			374
Consumer		306			150			598			459
Total recoveries		530			341			1,245			1,386
Net charge-offs (recoveries)		804			180			1,893			195
Provision for credit losses		1,266			5,911			1,992			5,552
Allowance-end of period	$	68,774		$	68,241		$	68,774		$	68,241
Ratio of annualized net charge-offs to average loans		0.06	%		0.01	%		0.07	%		0.01	%
Ratio of allowance for credit losses to loans outstanding (at amortized cost)		1.22	%		1.23	%		1.22	%		1.23	%
Ratio of allowance for credit losses to nonperforming loans		377	%		321	%		377	%		321	%

The increase in the allowance for credit losses to nonperforming loans ratio is primarily due to an increase in the allowance for credit losses and a decrease in nonperforming loans.

During the first nine months of 2024, the Company had net charge offs of $1.9 million compared to net charge offs of $0.2 million in 2023. During the first nine months of 2024, there was two commercial real estate loans to two borrowers totaling $0.5 million. During the first nine months of 2023, there were one agricultural loan to one borrower totaling $0.2 million.

Deposits

Funding of the Company’s earning assets is substantially provided by a combination of consumer, commercial and public fund deposits. The Company continues to focus its strategies and emphasis on retail core deposits, the major component of funding sources. The following table sets forth the average deposits and weighted average rates for the nine months ended September 30, 2024 and 2023 and for the year ended December 31, 2023 (dollars in thousands):

	Nine months ended September 30, 2024					Nine months ended September 30, 2023					Year ended December 31, 2023
	Average Balance		Weighted Average Rate			Average Balance		Weighted Average Rate			Average Balance		Weighted Average Rate
Demand deposits:
Non-interest-bearing	$	1,407,721	—%			$	1,265,188	—%			$	1,312,023	—%
Interest-bearing		3,019,098		2.28	%		2,489,962		1.71	%		2,618,452		1.83	%
Savings		686,383		0.12	%		643,343		0.11	%		663,760		0.11	%
Time deposits		1,023,647		3.74	%		922,944		2.75	%		961,162		2.98	%
Total average deposits	$	6,136,849		1.76	%	$	5,321,437		1.29	%	$	5,555,397		1.40	%

During the first nine months of 2024, the average balance of deposits increased by $581.5 million from the average balance for the

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year ended December 31, 2023. Average non-interest-bearing deposits increased by $95.7 million, average interest-bearing balances increased by $400.6 million, savings account balances increased $22.6 million, and balances of time deposits increased $62.5 million. Approximately 99% of the Company’s deposit accounts are less than $250,000. The average account balance for all deposit customers is approximately $22,000.

The following table sets forth the high and low month-end balances for the nine months ended September 30, 2024 and 2023 and for the year ended December 31, 2023 (in thousands):

	Nine months ended September 30, 2024		Nine months ended September 30, 2023		Year ended December 31, 2023
High month-end balances of total deposits	$	6,242,937	$	6,346,324	$	6,346,324
Low month-end balances of total deposits		6,088,834		5,030,778		5,030,778

Balances of time deposits, including brokered time deposits of $100,000 or more include time deposits maintained for public fund entities and consumer time deposits. The following table sets forth the maturity of time deposits, including brokered time deposits of $100,000 or more at September 30, 2024 and December 31, 2023 (in thousands):

	September 30, 2024		December 31, 2023
3 months or less	$	229,475	$	183,619
Over 3 through 6 months		249,697		231,187
Over 6 through 12 months		109,075		170,641
Over 12 months		79,964		117,657
Total	$	668,211	$	703,104

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Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase are short-term obligations of First Mid Bank. These obligations are collateralized with certain government securities that are direct obligations of the United States or one of its agencies. These retail repurchase agreements are offered as a cash management service to its corporate customers. Other borrowings consist of Federal Home Loan Bank (“FHLB”) advances, federal funds purchased, loans (short-term or long-term debt) that the Company has outstanding and junior subordinated debentures. Information relating to securities sold under agreements to repurchase and other borrowings as of September 30, 2024 and December 31, 2023 is presented below (dollars in thousands):

	September 30, 2024			December 31, 2023
Securities sold under agreements to repurchase	$	204,343		$	213,721
Federal Home Loan Bank advances:
Fixed term – due in one year or less		40,000			60,000
Fixed term – due after one year		198,712			203,787
Subordinated debt		87,373			106,755
Junior subordinated debentures		24,224			24,058
Total	$	554,652		$	608,321
Average interest rate at end of period		3.29	%		4.41	%
Maximum outstanding at any month-end:
Securities sold under agreements to repurchase	$	282,285		$	231,650
Federal Home Loan Bank advances:
FHLB – overnight		—			150,000
Fixed term – due in one year or less		65,000			105,024
Fixed term – due after one year		223,744			415,005
Other borrowings:
Subordinated debt		106,934			106,755
Junior subordinated debentures		24,224			24,058
Averages for the period (YTD):
Securities sold under agreements to repurchase	$	224,345		$	225,307
Federal Home Loan Bank advances:
FHLB – overnight		—			55,104
Fixed term – due in one year or less		50,292			95,669
Fixed term – due after one year		198,493			311,424
Other borrowings:
Federal funds purchased		—			192
Subordinated debt		103,311			99,638
Junior subordinated debentures		24,140			21,337
Total	$	600,581		$	808,671
Average interest rate during the period		3.78	%		2.16	%

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Securities sold under agreements to repurchase decreased $9.4 million during the first nine months of 2024 primarily due to the cash flow needs of various customers. FHLB advances represent borrowings by First Mid Bank to economically fund loan demand. At September 30, 2024 the fixed term advances, consisted of $238.6 million as follows:

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	2.0	4.59%	November 8, 2024
	10,000,000	5.0	1.45%	December 31, 2024
	5,000,000	5.0	0.91%	March 10, 2025
	3,605,826	10.0	2.64%	December 23, 2025
	25,000,000	3.0	4.40%	June 15, 2026
	25,000,000	3.0	4.37%	May 10, 2027
	25,000,000	3.0	4.32%	May 17, 2027
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.93%	June 27, 2029
	5,000,000	10.0	1.15%	October 3, 2029
	5,000,000	10.0	1.12%	October 3, 2029
	10,000,000	10.0	1.39%	December 31, 2029

The Company is party to a revolving credit agreement with The Northern Trust Company in the amount of $15.0 million. There was no balance on this line of credit as of September 30, 2024. This loan was renewed on April 5, 2024 for one year as a revolving credit agreement. The interest rate is floating at 2.25% over the federal funds rate. The Company and First Mid Bank, as applicable, were in compliance with the existing covenants at September 30, 2024 and 2023, and December 31, 2023.

On October 6, 2020, the Company issued and sold $96.0 million in aggregate principal amount of its 3.95% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”). The Notes were issued pursuant to the Indenture, dated as of October 6, 2020 (the “Base Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, dated as of October 6, 2020 (the “Supplemental Indenture”), between the Company and the Trustee. The Base Indenture, as amended and supplemented by the Supplemental Indenture, governs the terms of the Notes and provides that the Notes are unsecured, subordinated debt obligations of the Company and will mature on October 15, 2030. From and including the date of issuance to, but excluding October 15, 2025, the Notes will bear interest at an initial rate of 3.95% per annum. From and including October 15, 2025 to, but excluding the maturity date or earlier redemption, the Notes will bear interest at a floating rate equal to three-month Term SOFR plus a spread of 383 basis points, or such other rate as determined pursuant to the Supplemental Indenture, provided that in no event shall the applicable floating interest rate be less than zero per annum. On June 7, 2024, August 27, 2024, and September 6, 2024, the Company repurchased in open market transactions and subsequently cancelled $4.0 million, $15.0 million, and $1.0 million respectively, of the outstanding Notes. As a result, as of September 30, 2024, $76 million in aggregate principal amount of the Notes remain issued and outstanding.

The Company may, beginning with the interest payment date of October 15, 2025, and on any interest payment date thereafter, redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the Notes at any time, including prior to October 15, 2025, at the Company’s option, in whole but not in part, if: (i) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the Notes for U.S. federal income tax purposes; (ii) a subsequent event occurs that could preclude the Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended; in each case, at a redemption price equal to 100% of the principal amount of the Notes plus any accrued and unpaid interest to but excluding the redemption date.

On August 15, 2023, the Company assumed, as part of the Blackhawk Bancorp, Inc. acquisition, $7.5 million principal amount of 3.5% Fixed-to-Floating Rate Subordinated Notes due 2031 (“Blackhawk Subordinated Debt I”). Blackhawk Subordinated Debt I was issued pursuant to Indenture between the Company and UMB Bank, as trustee (the “Trustee”). The Indenture governs the terms of the Notes and provides that the Notes are unsecured, subordinated debt obligations of the Company and will mature on May 14, 2031. From and including the date of issuance to, but excluding May 14, 2026, the Notes will bear interest at an initial rate of 3.5% per annum. From and including May 14, 2026 to, but excluding the maturity date, the Notes will bear interest at a floating rate equal to three-month Term SOFR plus a spread of 285 basis points.

On August 15, 2023, the Company assumed, as part of the Blackhawk Bancorp, Inc. acquisition, $7.5 million principal amount of 3.875% Fixed-to-Floating Rate Subordinated Notes due 2036 (“Blackhawk Subordinated Debt II”). Blackhawk Subordinated Debt II was issued pursuant to Indenture between the Company and UMB Bank, as trustee (the “Trustee”). The Indenture governs the terms of the Notes and provides that the Notes are unsecured, subordinated debt obligations of the Company and will mature on May 14,

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2036. From and including the date of issuance to, but excluding May 14, 2031, the Notes will bear interest at an initial rate of 3.875% per annum. From and including May 14, 2031 to, but excluding the maturity date, the Notes will bear interest at a floating rate equal to three-month Term SOFR plus a spread of 255 basis points.

On April 26, 2006, the Company completed the issuance and sale of $10.0 million of fixed/floating rate trust preferred securities through First Mid-Illinois Statutory Trust II (“Trust II”), a statutory business trust and wholly owned unconsolidated subsidiary of the Company, as part of a pooled offering. The Company established Trust II for the purpose of issuing the trust preferred securities. The $10.0 million in proceeds from the trust preferred issuance and an additional $0.3 million for the Company’s investment in common equity of Trust II, a total of $10.3 million, was invested in junior subordinated debentures of the Company. The underlying junior subordinated debentures issued by the Company to Trust II mature in 2036, bore interest at a fixed rate of 6.98% paid quarterly until June 15, 2011 and then converted to floating rate (SOFR plus 160 basis points, 6.81% and 7.25% at September 30, 2024 and December 31, 2023, respectively).

On September 8, 2016, the Company assumed the trust preferred securities of Clover Leaf Statutory Trust I (“CLST I”), a statutory business trust that was a wholly owned unconsolidated subsidiary of First Clover Financial. The $4.0 million of trust preferred securities and an additional $0.1 million investment in common equity of CLST I, is invested in junior subordinated debentures issued to CLST I. The subordinated debentures mature in 2025, bear interest at three-month SOFR plus 185 basis points (7.06% and 7.50% at September 30, 2024 and December 31, 2023, respectively) and resets quarterly.

On May 1, 2018, the Company assumed the trust preferred securities of FBTC Statutory Trust I (“FBTCST I”), a statutory business trust that was a wholly owned unconsolidated subsidiary of First BancTrust Corporation. The $6.0 million of trust preferred securities and an additional $0.1 million investment in common equity of FBTCST I is invested in junior subordinated debentures issued to FBTCST I. The subordinated debentures mature in 2035, bear interest at three-month SOFR plus 170 basis points (6.91% and 7.35% at September 30, 2024 and December 31, 2023, respectively) and resets quarterly.

On August 15, 2023, the Company assumed the trust preferred securities of Blackhawk Statutory Trust I (“BHST I”), a statutory business trust that was a wholly owned unconsolidated subsidiary of Blackhawk Bancorp, Inc. The $1.0 million of trust preferred securities and an additional $31,000 investment in common equity of BHST I is invested in junior subordinated debentures issued to BHST I. The subordinated debentures mature in 2032, bear interest at three-month SOFR plus 325 basis points (8.17% and 8.87% at September 30, 2024 and December 31, 2023, respectively) and resets quarterly.

On August 15, 2023, the Company assumed the trust preferred securities of Blackhawk Statutory Trust II (“BHST II”), a statutory business trust that was a wholly owned unconsolidated subsidiary of Blackhawk Bancorp, Inc. The $4.0 million of trust preferred securities and an additional $0.1 million investment in common equity of BHST II is invested in junior subordinated debentures issued to BHST II. The subordinated debentures mature in 2035, bear interest at three-month SOFR plus 205 basis points (7.25% and 7.69% at September 30, 2024 and December 31, 2023, respectively) and resets quarterly.

The trust preferred securities issued by Trust II, CLST I, FBTCST I, BHST I, and BHST II are included as Tier 1 capital of the Company for regulatory capital purposes. On March 1, 2005, the Federal Reserve Board adopted a final rule that allows the continued limited inclusion of trust preferred securities in the calculation of Tier 1 capital for regulatory purposes. The final rule provided a five-year transition period, ending September 30, 2010, for application of the revised quantitative limits. On March 17, 2009, the Federal Reserve Board adopted an additional final rule that delayed the effective date of the new limits on inclusion of trust preferred securities in the calculation of Tier 1 capital until March 31, 2012. The application of the revised quantitative limits did not and is not expected to have a significant impact on its calculation of Tier 1 capital for regulatory purposes or its classification as well-capitalized. The Dodd-Frank Act, signed into law July 21, 2010, removes trust preferred securities as a permitted component of a holding company’s Tier 1 capital after a three-year phase-in period beginning January 1, 2013 for larger holding companies. For holding companies with less than $15.0 billion in consolidated assets, existing issues of trust preferred securities are grandfathered and not subject to this new restriction.

Similarly, the final rule implementing the Basel III reforms allows holding companies with less than $15.0 billion in consolidated assets as of December 31, 2009 to continue to count toward Tier 1 capital any trust preferred securities issued before May 19, 2010. New issuances of trust preferred securities, however, would not count as Tier 1 regulatory capital.

In addition to requirements of the Dodd-Frank Act discussed above, the act also required the federal banking agencies to adopt certain rules that prohibit banks and their affiliates from engaging in proprietary trading and investing in and sponsoring certain unregistered investment companies (defined as hedge funds and private equity funds). This rule is generally referred to as the “Volcker Rule.” The rules permit the retention of an interest in or sponsorship of covered funds by banking entities under $15.0 billion in assets (such as the Company) if (1) the collateralized debt obligation was established and issued prior to May 19, 2010, (2) the banking entity reasonably believes that the offering proceeds received by the collateralized debt obligation were invested primarily in qualifying trust preferred collateral, and (3) the banking entity’s interests in the collateralized debt obligation was

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acquired on or prior to December 10, 2013. The Company does not currently anticipate that the Volcker Rule will have a material effect on the operations of the Company or First Mid Bank.

Interest Rate Sensitivity

The Company seeks to maximize its net interest margin while maintaining an acceptable level of interest rate risk. Interest rate risk can be defined as the amount of forecasted net interest income that may be gained or lost due to changes in the interest rate environment, a variable over which management has no control. Interest rate risk, or sensitivity, arises when the maturity or repricing characteristics of interest-bearing assets differ significantly from the maturity or repricing characteristics of interest- bearing liabilities. The Company monitors its interest rate sensitivity position to maintain a balance between rate sensitive assets and rate sensitive liabilities. This balance serves to limit the adverse effects of changes in interest rates. The Company’s asset liability management committee (ALCO) oversees the interest rate sensitivity position and directs the overall allocation of funds.

In the banking industry, a traditional way to measure potential net interest income exposure to changes in interest rates is through a technique known as “static GAP” analysis which measures the cumulative differences between the amounts of assets and liabilities maturing or repricing at various intervals. By comparing the volumes of interest-bearing assets and liabilities that have contractual maturities and repricing points at various times in the future, management can gain insight into the amount of interest rate risk embedded in the balance sheet. The following table sets forth the Company’s interest rate repricing GAP for selected maturity periods at September 30, 2024 (dollars in thousands):

	Rate Sensitive Within
	1 year			2 years			3 years			4-5 years			Thereafter			Total		Fair Value
Interest-earning assets:
Federal funds sold and other interest-bearing deposits	$	46,093		$	—		$	—		$	—		$	—		$	46,093	$	46,093
Certificates of deposit investments		2,450			1,050			—			—			—			3,500		3,500
Taxable investment securities		129,093			82,054			102,244			283,261			479,317			1,075,969		1,075,968
Nontaxable investment securities		11,922			3,975			619			6,837			22,952			46,305		46,306
Loans		2,531,885			986,657			1,007,778			736,130			352,141			5,614,591		5,228,689
Total	$	2,721,443		$	1,073,736		$	1,110,641		$	1,026,228		$	854,410		$	6,786,458	$	6,400,556
Interest-bearing liabilities:
Savings and NOW accounts	$	62,851		$	—		$	—		$	—		$	2,419,854		$	2,482,705	$	2,482,705
Money market accounts		1,183,594			—			—			—			—			1,183,594		1,183,594
Other time deposits		912,222			53,318			19,151			49,682			872			1,035,245		953,708
Short-term borrowings/debt		204,343			—			—			—			—			204,343		204,343
Long-term borrowings/debt		114,224			110,263			50,000			50,000			25,823			350,310		345,624
Total	$	2,477,234		$	163,581		$	69,151		$	99,682		$	2,446,549		$	5,256,197	$	5,169,974
Rate sensitive assets – rate sensitive liabilities	$	244,209		$	910,155		$	1,041,490		$	926,546		$	(1,592,139	)	$	1,530,261
Cumulative GAP		244,209			1,154,364			2,195,854			3,122,400			1,530,261
Cumulative amounts as % of total Rate sensitive assets		3.6	%		13.4	%		15.3	%		13.7	%		-23.5	%
Cumulative Ratio		3.6	%		17.0	%		32.4	%		46.0	%		22.5	%

The static GAP analysis shows that at September 30, 2024, the Company was liability sensitive, on a cumulative basis, through the twelve-month time horizon. This indicates that future increases in interest rates could have an adverse effect on net interest income. There are several ways the Company measures and manages the exposure to interest rate sensitivity, including static GAP analysis. The Company’s ALCO also uses other financial models to project interest income under various rate scenarios and prepayment/extension assumptions consistent with First Mid Bank’s historical experience and with known industry trends. ALCO meets at least monthly to review the Company’s exposure to interest rate changes as indicated by the various techniques and to make necessary changes in the composition terms and/or rates of the assets and liabilities.

Capital Resources

At September 30, 2024, the Company’s stockholders' equity increased $65.3 million or 8.2%, to $858.5 million from $793.2 million as of December 31, 2023. During the first nine months of 2024, net income contributed $59.7 million to equity before the payment of dividends to stockholders. The change in market value of available-for-sale investment securities increased stockholders' equity by $19.7 million, net of tax. Dividends of $16.7 million were paid during the first nine months of 2024.

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Bank holding companies follow minimum regulatory requirements established by the Board of Governors of the Federal Reserve System (“Federal Reserve System”), First Mid Bank follows similar minimum regulatory requirements established for banks by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation, as applicable. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary action by regulators that, if undertaken, could have

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a direct material effect on the Company’s financial statements. Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and its subsidiary bank to maintain minimum capital amounts and ratios (set forth in the table below). Management believes that, as of September 30, 2024 and December 31, 2023, the Company and First Mid Bank, as applicable, met all capital adequacy requirements.

As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, the Company elected the option to delay the estimated impact on regulatory capital of adopting ASU 2016-13, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13, as well as 25% of the quarterly increases in allowance for credit losses subsequent to adoption of ASU 2016-13 was delayed for two years. After two years, the cumulative amount of these adjustments is being phased out of the regulatory capital calculation over a three-year period, with 75% of the adjustments included in 2022, 50% of the adjustments included in 2023 and 25% of the adjustments included in 2024. After five years, the temporary delay of ASU 2016-13 adoption will be fully reversed.

To be categorized as well-capitalized, total risk-based capital, Tier 1 risk-based capital, common equity Tier 1 risk-based capital and Tier 1 leverage ratios must be maintained as set forth in the following table (dollars in thousands):

	Actual					Required Minimum For Capital Adequacy Purposes			To Be Well-Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio	Amount		Ratio
September 30, 2024
Total capital (to risk-weighted assets)
Company	$	917,555		15.24	%	$	631,992	> 10.50%	N/A		N/A
First Mid Bank		873,465		14.55	%		630,118	> 10.50%	$	600,112	> 10.00%
Tier 1 capital (to risk-weighted assets)
Company		764,131		12.70	%		511,613	> 8.50%	N/A		N/A
First Mid Bank		807,414		13.45	%		510,095	> 8.50%		480,090	> 8.00%
Common equity tier 1 capital (to risk-weighted assets)
Company		739,907		12.29	%		421,328	> 7.00%	N/A		N/A
First Mid Bank		807,414		13.45	%		420,079	> 7.00%		390,073	> 6.50%
Tier 1 capital (to average assets)
Company		764,131		10.14	%		301,490	> 4.00%	N/A		N/A
First Mid Bank		807,414		10.76	%		300,262	> 4.00%		375,328	> 5.00%
December 31, 2023
Total capital (to risk-weighted assets)
Company	$	894,259		14.84	%	$	632,724	>10.50%	N/A		N/A
First Mid Bank		854,235		14.22	%		630,581	>10.50%	$	600,553	> 10.00%
Tier 1 capital (to risk-weighted assets)
Company		724,186		12.02	%		512,205	> 8.50%	N/A		N/A
First Mid Bank		790,917		13.17	%		510,470	> 8.50%		480,443	> 8.00%
Common equity tier 1 capital (to risk-weighted assets)
Company		700,128		11.62	%		421,816	> 7.00%	N/A		N/A
First Mid Bank		790,917		13.17	%		420,387	> 7.00%		390,360	> 6.50%
Tier 1 capital (to average assets)
Company		724,186		9.33	%		310,587	> 4.00%	N/A		N/A
First Mid Bank		790,917		10.23	%		309,151	> 4.00%		386,439	> 5.00%

The Company's risk-weighted assets, capital, and capital ratios for September 30, 2024 are computed in accordance with Basel III capital rules which were effective January 1, 2015. As of September 30, 2024, the Company and First Mid Bank had capital ratios above the required minimums for regulatory capital adequacy, and First Mid Bank had capital ratios that qualified it for treatment as well-capitalized under the regulatory framework for prompt corrective action with respect to banks.

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Stock Plans

Participants may purchase Company stock under the following three plans of the Company: The Deferred Compensation Plan, the Dividend Reinvestment Plan, and the Stock Incentive Plan. For more detailed information on these plans, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

At the Annual Meeting of Stockholders held April 26, 2017, the stockholders approved the 2017 Stock Incentive Plan ("SI Plan"). The SI Plan was implemented to succeed the Company’s 2007 Stock Incentive Plan, which had a ten-year term. The SI Plan is intended to provide a means whereby directors, employees, consultants and advisors of the Company and its Subsidiaries may sustain a sense of proprietorship and personal involvement in the continued development and financial success of the Company and its Subsidiaries, thereby advancing the interests of the Company and its stockholders. Accordingly, directors and selected employees, consultants and advisors may be provided the opportunity to acquire shares of Common Stock of the Company on the terms and conditions established in the SI Plan.

Following the stockholders’ approval at the 2021 annual meeting of the Company, a maximum of 399,983 shares of common stock may be issued under the SI Plan. The Company awarded 53,766 and 60,550 restricted stock awards during 2024 and 2023, respectively and 39,150 and 37,900 as stock unit awards during 2024 and 2023, respectively.

Employee Stock Purchase Plan

At the Annual Meeting of Stockholders held April 25, 2018, the stockholders approved the First Mid-Illinois Bancshares, Inc. Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to promote the interests of the Company by providing eligible employees with the opportunity to purchase shares of common stock of the Company at a 15% discount through payroll deductions. The ESPP is also intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. A maximum of 600,000 shares of common stock may be issued under the ESPP. As of September 30, 2024, 119,047 shares have been issued pursuant to the ESPP. During the nine months ended September 30, 2024 and 2023, 25,319 shares and 28,762 shares, respectively, were issued pursuant to the ESPP.

Stock Repurchase Program

Since August 5, 1998, the Board of Directors has approved repurchase programs pursuant to which the Company may repurchase a total of approximately $76.7 million of the Company’s common stock. During 2024, the Company did not repurchase any shares. The Company has approximately $4.1 million in remaining capacity under its existing repurchase program.

Although the Company adopted the repurchase plan, the Company may make discretionary repurchases in the open market or in privately negotiated transactions from time to time. The timing, manner, price and amount of any such repurchases will be determined by the Company at its discretion and will depend upon a variety of factors including economic and market conditions, price, applicable legal requirements and other factors.

Liquidity

Liquidity represents the ability of the Company and its subsidiaries to meet all present and future financial obligations arising in the daily operations of the business. Financial obligations consist of the need for funds to meet extensions of credit, deposit withdrawals and debt servicing. The Company’s liquidity management focuses on the ability to obtain funds economically through assets that may be converted into cash at minimal costs or through other sources. The Company’s other sources of cash include overnight federal fund lines, Federal Home Loan Bank advances, deposits of the State of Illinois, the ability to borrow at the Federal Reserve Bank of Chicago, and the Company’s operating line of credit with The Northern Trust Company.

Details of the Company's liquidity sources include:

•First Mid Bank has $120 million available in overnight federal fund lines, including $30 million from First Horizon Bank, N.A., $20 million from U.S. Bank, N.A., $10 million from Wells Fargo Bank, N.A., $15 million from The Northern Trust Company, $25 million from Zions Bank, and $20 million from BMO Bank, N.A. Availability of the funds is subject to First Mid Bank meeting minimum regulatory capital requirements for total capital to risk-weighted assets and Tier 1 capital to total average assets. As of September 30, 2024, First Mid Bank met these regulatory requirements.

•First Mid Bank can borrow from the Federal Home Loan Bank as a source of liquidity. Availability of the funds is subject to the pledging of collateral to the Federal Home Loan Bank. Collateral that can be pledged includes one-to-four family residential real estate loans and securities. At September 30, 2024, the excess collateral at the FHLB would support approximately $1.6 billion of additional advances for First Mid Bank.

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•First Mid Bank is a member of the Federal Reserve System and can borrow funds provided that sufficient collateral is pledged.

•In addition, as of September 30, 2024, the Company had a revolving credit agreement in the amount of $15.0 million with The Northern Trust Company with an outstanding balance of $0 and $15.0 million in available funds. This loan was renewed on April 5, 2024 for one year as a revolving credit agreement. The interest rate is floating at 2.25% over the federal funds rate. The loan is unsecured. The Company and its subsidiary bank were in compliance with the existing covenants at September 30, 2024 and 2023 and December 31, 2023.

Management continues to monitor its expected liquidity requirements carefully, focusing primarily on cash flows from:

•lending activities, including loan commitments, letters of credit and mortgage prepayment assumptions;

•deposit activities, including seasonal demand of private and public funds;

•investing activities, including prepayments of mortgage-backed securities and call provisions on U.S. Treasury and government agency securities; and

•operating activities, including scheduled debt repayments and dividends to stockholders.

The following table summarizes significant contractual obligations and other commitments at September 30, 2024 (in thousands):

			Less than						More than
	Total		1 year		1-3 years		3-5 years		5 years
Time deposits	$	1,035,245	$	912,222	$	72,469	$	49,682	$	872
Debt		111,597		4,068		—		—		107,529
Other borrowing		443,055		244,343		78,712		100,000		20,000
Operating leases		16,751		3,208		5,723		3,968		3,852
Supplemental retirement		1,923		50		250		300		1,323
	$	1,608,571	$	1,163,891	$	157,154	$	153,950	$	133,576

For the nine months ended September 30, 2024, net cash of $86.2 million was provided by operating activities, $39.5 million was provided by investing activities, and $104.5 million was used in financing activities. In total, cash and cash equivalents increased by $21.1 million since year-end 2023.

Off-Balance Sheet Arrangements

First Mid Bank enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include lines of credit, letters of credit and other commitments to extend credit. Each of these instruments involves, to varying degrees, elements of credit, interest rate and liquidity risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies and requires similar collateral in approving lines of credit and commitments and issuing letters of credit as it does in making loans. The exposure to credit losses on financial instruments is represented by the contractual amount of these instruments. However, the Company does not anticipate any losses from these instruments. The off-balance sheet financial instruments whose contract amounts represent credit risk at September 30, 2024 and December 31, 2023 were as follows (in thousands):

	September 30, 2024		December 31, 2023
Unused commitments and lines of credit:
Commercial real estate	$	329,119	$	219,117
Commercial operating		630,672		681,360
Home equity		105,788		104,142
Other		338,000		311,907
Total	$	1,403,579	$	1,316,526
Standby letters of credit	$	18,630	$	17,401

Commitments to originate credit represent approved commercial, residential real estate and home equity loans that generally are expected to be funded within ninety days. Lines of credit are agreements by which the Company agrees to provide a borrowing accommodation up to a stated amount as long as there is no violation of any condition established in the loan agreement. Both commitments to originate credit and lines of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the lines and some commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements.

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Standby letters of credit are conditional commitments issued by the Company to guarantee the financial performance of customers to third parties. Standby letters of credit are primarily issued to facilitate trade or support borrowing arrangements and generally expire in one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending credit facilities to customers. The maximum amount of credit that would be extended under letters of credit is equal to the total off-balance sheet contract amount of such instrument. The Company's deferred revenue under standby letters of credit was nominal.

The Company is also subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition of ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the market risk faced by the Company since December 31, 2023. For information regarding the Company’s market risk, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on such evaluation, such officers have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective. Further, there have been no changes in the Company’s internal control over financial reporting during the last fiscal quarter that have materially affected or that are reasonably likely to affect materially the Company’s internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS

From time to time the Company and its subsidiaries may be involved in litigation that the Company believes is a type common to our industry. None of any such existing claims are believed to be individually material at this time to the Company, although the outcome of any such existing claims cannot be predicted with certainty.

ITEM 1A. RISK FACTORS

Various risks and uncertainties, some of which are difficult to predict and beyond the Company’s control, could negatively impact the Company. As a financial institution, the Company is exposed to interest rate risk, liquidity risk, credit risk, operational risk, risks from economic or market conditions, and general business risks among others. Adverse experience with these or other risks could have a material impact on the Company’s financial condition and results of operations, as well as the value of its common stock. See the risk factors and “Supervision and Regulation” described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ISSUER PURCHASES OF EQUITY SECURITIES
Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2024 - July 31, 2024		—	$	—		—	$	4,061,000
August 1, 2024 - August 31, 2024		—		—		—		4,061,000
September 1, 2024 - September 30, 2024		—		—		—		4,061,000
Total		—	$	—		—	$	4,061,000

See heading “Stock Repurchase Program” for more information regarding stock purchases.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None of the Company's directors and officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company's fiscal quarter ended September 30, 2024 (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).
 

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ITEM 6. EXHIBITS

The exhibits required by Item 601 of Regulation S-K and filed herewith are listed in the Exhibit Index that precedes the Signature Page and the exhibits filed.

Exhibit Number	Exhibit Index to Quarterly Report on Form 10-Q Description and Filing or Incorporation Reference
10.1	Amendment No. 1 to Registration Rights Agreement, dated as of August 7, 2024 Incorporated by reference to Exhibit 10.1 of First Mid Bancshares, Inc.'s Quarterly Report on Form 10-Q filed on August 7, 2024
31.1	Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104	Cover page formatted as Inline Inline XBRL and contained in Exhibits 101

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FIRST MID BANCSHARES, INC.

(Registrant)

Date: November 8, 2024

/s/ Joseph R. Dively

Joseph R. Dively

President and Chief Executive Officer

/s/ Matthew K. Smith

Matthew K. Smith

Chief Financial Officer

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EX-31.1

Exhibit 31.1

Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002

I, Joseph R. Dively, certify that:

1.I have reviewed this quarterly report on Form 10-Q of First Mid Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2024

By:	/s/ Joseph R. Dively
Joseph R. Dively
President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002

I, Matthew K. Smith, certify that:

1.I have reviewed this report on Form 10-Q of First Mid Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2024

By:	/s/ Matthew K. Smith
Matthew K. Smith
Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to

section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of First Mid Bancshares, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joseph R. Dively, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2024

/s/ Joseph R. Dively

Joseph R. Dively

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to

In connection with the Quarterly Report of First Mid Bancshares, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew K. Smith, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2024

/s/ Matthew K. Smith

Matthew K. Smith

Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 08, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Registrant Name	FIRST MID BANCSHARES, INC.
Entity Central Index Key	0000700565
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,911,668
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	FMBH
Security Exchange Name	NASDAQ
Entity File Number	001-36434
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1103704
Entity Address, Address Line One	1421 Charleston Avenue
Entity Address, City or Town	Mattoon
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61938
City Area Code	217
Local Phone Number	234-7454
Document Quarterly Report	true
Document Transition Report	false

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Cash and due from banks:
Non-interest bearing	$ 118,098	$ 122,871
Interest bearing	46,067	11,211
Federal funds sold	26	8,982
Cash and cash equivalents	164,191	143,064
Certificates of deposit	3,500	1,470
Investment securities:
Available-for-sale, at fair value (amortized cost of $1,274,662 and $1,363,721 at September 30, 2024 and December 31, 2023, respectively)	1,115,552	1,171,572
Held-to-maturity, at amortized cost (estimated fair value of $2,298 and $2,286 at September 30, 2024 and December 31, 2023, respectively)	2,298	2,286
Equity securities, at fair value	4,424	4,074
Loans held for sale	8,085	4,980
Loans	5,606,506	5,575,585
Less allowance for credit losses	(68,774)	(68,675)
Net loans	5,537,732	5,506,910
Interest receivable	38,387	35,082
Other real estate owned	1,832	1,163
Premises and equipment, net	101,464	101,396
Goodwill, net	203,391	196,461
Intangible assets, net	61,748	67,770
Bank owned life insurance	169,635	166,125
Right of use lease assets	14,560	14,306
'Deferred tax asset, net	55,591	70,067
Other assets	80,099	100,068
Total assets	7,562,489	7,586,794
Deposits:
Non-interest bearing	1,387,290	1,398,234
Interest bearing	4,701,544	4,725,425
Total deposits	6,088,834	6,123,659
Securities sold under agreements to repurchase	204,343	213,721
Interest payable	6,491	5,437
FHLB borrowings	238,712	263,787
Junior subordinated debentures, net	24,224	24,058
Subordinated debt, net	87,373	106,755
Lease liabilities	14,873	14,615
Other liabilities	39,142	41,558
Total liabilities	6,703,992	6,793,590
Stockholders’ equity:
Common stock ($4 par value; authorized 30,000,000 shares; issued 24,556,622 and 24,479,708 shares in 2024 and 2023, respectively; outstanding 23,904,051 and 23,827,137 shares in 2024 and 2023, respectively)	100,227	99,919
Additional paid-in capital	512,415	509,314
Retained earnings	381,736	338,662
Deferred compensation	2,147	2,629
Accumulated other comprehensive loss	(116,692)	(136,427)
Treasury stock, at cost (652,571 shares in 2024 and 652,571 shares in 2023)	(21,336)	(20,893)
Total stockholders’ equity	858,497	793,204
Total liabilities and stockholders’ equity	$ 7,562,489	$ 7,586,794

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investment securities:
Held-to-maturity, at fair value	$ 2,298	$ 2,286
Available-for-sale, amotized cost	$ 1,274,661	$ 1,363,721
Stockholders’ equity:
Common stock, par value (in dollars per share)	$ 4	$ 4
Common stock, authorized (in shares)	30,000,000	30,000,000
Common stock, issued (in shares)	24,556,622	24,479,708
Common stock, outstanding (in shares)	23,904,051	23,827,137
Treasury stock (in shares)	652,571	652,571

XML

Condensed Consolidated Statements of Income (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Interest and fees on loans	$ 81,775,000	$ 69,143,000	$ 239,158,000	$ 183,747,000
Interest on investment securities	7,036,000	9,284,000	21,846,000	23,604,000
Interest on certificates of deposit investments	39,000	15,000	102,000	44,000
Interest on federal funds sold	28,000	114,000	53,000	297,000
Interest on deposits with other financial institutions	2,304,000	1,882,000	6,378,000	2,547,000
Total interest income	91,182,000	80,438,000	267,537,000	210,239,000
Interest expense:
Interest on deposits	28,341,000	22,047,000	80,775,000	51,394,000
Interest on securities sold under agreements to repurchase	1,444,000	1,625,000	5,115,000	4,811,000
Interest on FHLB borrowings	2,194,000	4,761,000	6,756,000	13,719,000
Interest on other borrowings	1,000	(12,000)	1,000	(3,000)
Interest on junior subordinated debentures	567,000	545,000	1,646,000	1,314,000
Interest on subordinated debentures	1,092,000	1,029,000	3,466,000	3,003,000
Total interest expense	33,639,000	29,995,000	97,759,000	74,238,000
Net interest income	57,543,000	50,443,000	169,778,000	136,001,000
Provision for credit losses	1,266,000	5,911,000	1,992,000	5,552,000
Net interest income after provision for credit losses	56,277,000	44,532,000	167,786,000	130,449,000
Other income:
Wealth management revenues	5,816,000	4,940,000	16,543,000	15,795,000
Insurance commissions	6,003,000	5,199,000	21,747,000	19,416,000
Service charges	3,121,000	2,994,000	9,304,000	7,583,000
Securities gains (losses), net	(277,000)	3,389,000	(433,000)	3,337,000
Mortgage banking revenue, net	1,109,000	846,000	2,853,000	1,328,000
ATM/debit card revenue	4,267,000	3,766,000	12,603,000	10,114,000
Bank owned life insurance	1,196,000	1,024,000	3,509,000	3,854,000
Other	1,788,000	895,000	3,797,000	3,591,000
Total other income	23,023,000	23,053,000	69,923,000	65,018,000
Other expense:
Salaries and employee benefits	31,565,000	25,422,000	92,177,000	75,037,000
Net occupancy and equipment expense	8,055,000	6,929,000	23,122,000	18,969,000
Net other real estate owned expense	107,000	902,000	171,000	1,062,000
FDIC insurance	829,000	785,000	2,600,000	2,324,000
Amortization of intangible assets	3,405,000	2,568,000	10,242,000	5,567,000
Stationery and supplies	482,000	335,000	1,243,000	942,000
Legal and professional	2,573,000	1,844,000	7,558,000	5,314,000
ATM/debit card	1,869,000	1,751,000	4,341,000	3,990,000
Marketing and donations	836,000	764,000	2,512,000	2,326,000
Other	4,212,000	5,796,000	14,720,000	13,184,000
Total other expense	53,933,000	47,096,000	158,686,000	128,715,000
Income before income taxes	25,367,000	20,489,000	79,023,000	66,752,000
Income taxes	5,885,000	5,372,000	19,293,000	15,888,000
Net income	$ 19,482,000	$ 15,117,000	$ 59,730,000	$ 50,864,000
Per share data:
Basic net income per common share	$ 0.81	$ 0.68	$ 2.5	$ 2.41
Diluted net income per common share	0.81	0.68	2.49	2.4
Cash dividends declared per common share	$ 0.24	$ 0.23	$ 0.7	$ 0.69

XML

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 19,482,000	$ 15,117,000	$ 59,730,000	$ 50,864,000
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, net of tax benefit (expense) of ($11,316) and ($10,183) for three months ended September 30, 2024 and 2023, respectively and ($7,300) and $10,223 for the nine months ended September 30, 2024 and 2023, respectively	30,106,000	(24,931,000)	19,421,000	(25,027,000)
Less: reclassification adjustment for realized gains (losses) included in net income, net of tax benefit (expense) of $77 and ($983) for three months ended September 30, 2024 and 2023, respectively and $119 and ($968) for the nine months ended September 30, 2024 and 2023, respectively	(200,000)	2,406,000	(314,000)	2,369,000
Other comprehensive income (loss), net of taxes	30,306,000	(27,337,000)	19,735,000	(27,396,000)
Comprehensive income	$ 49,788,000	$ (12,220,000)	$ 79,465,000	$ 23,468,000

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, tax benefit (expense)	$ (11,316)	$ 10,183	$ (7,300)	$ 10,223
Reclassification adjustment for realized gains (losses) included in net income, taxes	$ 77	$ (983)	$ 119	$ (968)

XML

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Total	Blackhawk Bancorp, Inc	Common Stock	Common Stock Blackhawk Bancorp, Inc	Additional Paid-in Capital	Additional Paid-in Capital Blackhawk Bancorp, Inc	Retained Earnings	Deferred Compensation	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance at Dec. 31, 2022	$ 633,155,000		$ 86,366,000		$ 427,001,000		$ 289,284,000	$ 2,064,000	$ (151,507,000)	$ (20,053,000)
Net income	50,864,000						50,864,000
Other comprehensive income (loss), net tax	(27,396,000)								(27,396,000)
Cash dividends on common stock	(14,096,000)						(14,096,000)
Issuance of restricted shares pursuant to 2017 stock incentive plan, net of forfeitures	1,622,000		218,000		1,404,000
Issuance of common shares pursuant to 2017 stock incentive plan	120,000		17,000		103,000
Issuance of common shares pursuant to the employee stock purchase plan	667,000		115,000		552,000
Issuance of shares pursuant to the acquisition		$ 93,508,000		$ 13,161,000		$ 80,347,000
Purchase of treasury shares	(5,000)									(5,000)
Deferred compensation	(1,223,000)							(1,036,000)		(187,000)
Grant of restricted units pursuant to 2017 stock incentive plan	1,048,000				1,048,000
Release of restricted units pursuant to 2017 stock incentive plan	(1,529,000)				(1,529,000)
Vested restricted shares/units compensation expense	1,213,000				169,000			1,044,000
Ending balance at Sep. 30, 2023	737,948,000		99,877,000		509,095,000		326,052,000	2,072,000	(178,903,000)	(20,245,000)
Beginning balance at Jun. 30, 2023	660,687,000		86,670,000		428,504,000		315,636,000	1,502,000	(151,566,000)	(20,059,000)
Net income	15,117,000						15,117,000
Other comprehensive income (loss), net tax	(27,337,000)								(27,337,000)
Cash dividends on common stock	(4,701,000)						(4,701,000)
Issuance of common shares pursuant to the employee stock purchase plan	238,000		46,000		192,000
Issuance of shares pursuant to the acquisition		$ 93,508,000		$ 13,161,000		$ 80,347,000
Deferred compensation	(33,000)							153,000		(186,000)
Vested restricted shares/units compensation expense	469,000				52,000			417,000
Ending balance at Sep. 30, 2023	737,948,000		99,877,000		509,095,000		326,052,000	2,072,000	(178,903,000)	(20,245,000)
Beginning balance at Dec. 31, 2023	793,204,000		99,919,000		509,314,000		338,662,000	2,629,000	(136,427,000)	(20,893,000)
Net income	59,730,000						59,730,000
Other comprehensive income (loss), net tax	19,735,000								19,735,000
Cash dividends on common stock	(16,656,000)						(16,656,000)
Issuance of restricted shares pursuant to 2017 stock incentive plan, net of forfeitures	1,541,000		185,000		1,356,000
Issuance of common shares pursuant to 2017 stock incentive plan	188,000		22,000		166,000
Issuance of common shares pursuant to the employee stock purchase plan	652,000		101,000		551,000
Deferred compensation	(2,377,000)							(1,934,000)		(443,000)
Grant of restricted units pursuant to 2017 stock incentive plan	1,485,000				1,485,000
Release of restricted units pursuant to 2017 stock incentive plan	(617,000)				(617,000)
Vested restricted shares/units compensation expense	1,612,000				160,000			1,452,000
Ending balance at Sep. 30, 2024	858,497,000		100,227,000		512,415,000		381,736,000	2,147,000	(116,692,000)	(21,336,000)
Beginning balance at Jun. 30, 2024	813,645,000		100,194,000		512,181,000		367,967,000	1,382,000	(146,998,000)	(21,081,000)
Net income	19,482,000						19,482,000
Other comprehensive income (loss), net tax	30,306,000								30,306,000
Cash dividends on common stock	(5,713,000)						(5,713,000)
Forfeiture of restricted shares pursuant to the 2017 stock incentive plan	(38,000)		(4,000)		(34,000)
Issuance of common shares pursuant to the employee stock purchase plan	254,000		37,000		217,000
Deferred compensation	37,000							292,000		(255,000)
Vested restricted shares/units compensation expense	524,000				51,000			473,000
Ending balance at Sep. 30, 2024	$ 858,497,000		$ 100,227,000		$ 512,415,000		$ 381,736,000	$ 2,147,000	$ (116,692,000)	$ (21,336,000)

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cash dividends declared per common share	$ 0.24	$ 0.23	$ 0.7	$ 0.69
Stock issued during period, shares, restricted stock award, forfeited	1,201
Stock issued during period, shares, employee stock purchase plans	9,384	11,624	25,319	28,762
Restricted stock issued during period, shares, pursuant to the 2017 stock incentive plan, net of forfeitures			45,995	54,498
Common stock issued during period, shares, pursuant to the 2017 stock incentive plan			5,600	4,350
Purchase of treasury shares (in shares)				170
Blackhawk Bancorp, Inc
Stock Issued During Period, Shares, Acquisitions		3,290,222		3,290,222

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Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 59,730	$ 50,864
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	1,992	5,552
Depreciation, amortization and accretion, net	15,630	9,971
Change in cash surrender value of bank owned life insurance	(3,509)	(2,878)
Change in bank owned life insurance	0	(976)
Stock-based compensation expense	1,741	1,213
Operating lease payments	(2,502)	(2,414)
Loss (gain) on investment securities, net	433	(3,337)
(Gain) loss on sales and write downs of other real estate owned, net	(33)	1,227
Loss on sale of other assets	8	69
Gain on sale of loans held for sale, net	(2,631)	(934)
Gain on repayment of subordinated debentures	(493)	0
Increase in accrued interest receivable	(3,305)	(4,090)
Increase in accrued interest payable	1,393	2,306
Origination of loans held for sale	(103,534)	(51,413)
Proceeds from sale of loans held for sale	103,060	46,452
Decrease (increase) in other assets	21,398	(2,351)
Decrease in other liabilities	(3,227)	(5,692)
Net cash provided by operating activities	86,151	43,569
Cash flows from investing activities:
Proceeds from maturities of certificates of deposit investments	245	690
Purchases of certificates of deposit investments	(2,275)	(245)
Proceeds from sales of securities available-for-sale	32,338	265,145
Proceeds from maturities of securities available-for-sale	71,126	80,932
Proceeds from maturities of securities held-to-maturity	0	695
Purchases of securities available-for-sale	(16,299)	(1,063)
Purchase of securities held-to-maturity	(57)	0
Net (increase) decrease in loans	(33,305)	21,078
Purchases of premises and equipment	(3,703)	(3,021)
Proceeds from sale of premises and equipment	7	0
Proceeds from sales of other real property owned	318	1,754
Proceeds from bank owned life insurance death benefit	0	2,048
Net cash (used in) provided by acquisition	(8,944)	44,621
Net cash provided by investing activities	39,451	412,634
Cash flows from financing activities:
Net decrease in deposits	(34,825)	(105,649)
Decrease in repurchase agreements	(9,378)	(6,436)
Proceeds from FHLB advances	75,000	150,000
Repayment of FHLB advances	(100,000)	(250,000)
Repayment of subordinated debenture	(19,455)	0
Proceeds from issuance of common stock	839	787
Purchase of treasury stock	0	(5)
Dividends paid on common stock	(16,656)	(14,096)
Net cash used in financing activities	(104,475)	(225,399)
Increase in cash and cash equivalents	21,127	230,804
Cash and cash equivalents at beginning of period	143,064	152,433
Cash and cash equivalents at end of period	164,191	383,237
Cash paid during the period for:
Interest	96,705	70,857
Income taxes	(1,445)	16,627
Supplemental disclosures of noncash investing and financing activities
Loans transferred to other real estate	491	648
Initial recognition of right-of-use assets	2,404	659
Initial recognition of lease liabilities	2,404	659
Dividends reinvested in common stock	0	0
LINCO Bancshares, Inc.
Supplemental disclosures of purchases of capital stock
Fair value of assets acquired	11,449	1,328,280
Cash paid	9,000	10,172
Common stock issued	0	93,508
Total consideration paid	9,000	103,680
Fair value of liabilities assumed	$ 2,449	$ 1,224,600

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Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 19,482,000	$ 15,117,000	$ 59,730,000	$ 50,864,000

XML

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Title	directors and officers
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

XML

Basis of Accounting and Consolidation

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting and Consolidation

Note 1 -- Basis of Accounting and Consolidation

The unaudited condensed consolidated financial statements include the accounts of First Mid Bancshares, Inc. (“Company”) and its wholly owned subsidiaries: First Mid Bank & Trust, N.A. (“First Mid Bank”), First Mid Wealth Management Company, First Mid Insurance Group, Inc. (“First Mid Insurance”), and First Mid Captive, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. The financial information reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods ended September 30, 2024 and 2023, and all such adjustments are of a normal recurring nature. Certain amounts in the prior year’s consolidated financial statements may have been reclassified to conform to the September 30, 2024 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended September 30, 2024 are not necessarily indicative of the results expected for the year ending December 31, 2024. The Company operates as a one-segment entity for financial reporting purposes. The 2023 year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and related footnote disclosures although the Company believes that the disclosures made are adequate to make the information not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K.

Blackhawk Bancorp, Inc.

On March 20, 2023, First Mid Bancshares, Inc. (“First Mid”) and Eagle Sub LLC, a newly formed Wisconsin limited liability company and wholly-owned subsidiary of First Mid (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Blackhawk Bancorp, Inc., a Wisconsin corporation (“Blackhawk”), pursuant to which, among other things, First Mid agreed to acquire 100% of the issued and outstanding shares of Blackhawk pursuant to a business combination whereby Blackhawk will merge with and into Merger Sub, whereupon the separate corporate existence of Blackhawk will cease and Merger Sub will continue as the surviving company and a wholly-owned subsidiary of First Mid (the “Merger”).

Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $0.01 per share, of Blackhawk issued and outstanding immediately prior to the effective time of the Merger (other than shares held in treasury by Blackhawk and dissenting shares) were converted into and become the right to receive 1.15 shares of common stock, par value $4.00 per share, of First Mid and cash in lieu of fractional shares, less any applicable taxes required to be withheld, and subject to certain potential adjustments. On an aggregate basis, the total consideration payable by First Mid at the closing of the Merger to Blackhawk’s shareholders and equity award holders was 3,290,222 shares of First Mid common stock valued at $93.51 million and $1,928 of cash in lieu of fractional shares.

The Blackhawk Merger closed August 15, 2023 and Blackhawk Bank was merged into First Mid Bank on December 1, 2023.

Website

The Company maintains a website at www.firstmid.com. All periodic and current reports of the Company and amendments to these reports filed with the Securities and Exchange Commission (“SEC”) can be accessed, free of charge, through this website as soon as reasonably practicable after these materials are filed with the SEC.

General Litigation

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.

Stock Plans

At the Annual Meeting of Stockholders held April 26, 2017, the stockholders approved the First Mid-Illinois Bancshares, Inc. 2017 Stock Incentive Plan (“SI Plan”). The SI Plan was implemented to succeed the Company’s 2007 Stock Incentive Plan, which had a ten-year term. The SI Plan is intended to provide a means whereby directors, employees, consultants and advisors of the Company and its subsidiaries may sustain a sense of proprietorship and personal involvement in the continued development and financial success of the Company and its subsidiaries, thereby advancing the interests of the Company and its stockholders. Accordingly, directors and selected employees, consultants and advisors may be provided the opportunity to acquire shares of common stock of the Company on the terms and conditions established in the SI Plan.

Following the stockholders’ approval at the 2021 annual meeting of the Company, a maximum of 399,983 shares of common stock may be issued under the SI Plan. There have been no stock options awarded under any Company plan since 2008. The Company has awarded 53,766 and 60,550 shares of restricted stock during the nine months ended September 30, 2024 and 2023, respectively, and 39,150 and 37,900 restricted stock units during the nine months ended September 30, 2024 and 2023, respectively.

Employee Stock Purchase Plan

At the Annual Meeting of Stockholders held April 25, 2018, the stockholders approved the First Mid-Illinois Bancshares, Inc. Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to promote the interests of the Company by providing eligible employees with the opportunity to purchase shares of common stock of the Company at a 15% discount through payroll deductions. The ESPP is also intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code.

A maximum of 600,000 shares of common stock may be issued under the ESPP. During the nine months ended September 30, 2024 and 2023, 25,319 shares and 28,762 shares, respectively, were issued pursuant to the ESPP.

Captive Insurance Company

First Mid Captive, Inc. (the “Captive"), a wholly owned subsidiary of the Company which was formed and began operations in December 2019, is a Nevada-based captive insurance company. The Captive insures against certain risks unique to operations of the Company and its subsidiaries for which insurance may not be currently available or economically feasible in today's insurance marketplace. The Captive pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. The Captive is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. It has elected to be taxed under Section 831(b) of the Internal Revenue Code. Pursuant to Section 831(b), if gross premiums do not exceed $2.8 million, then the Captive is taxable solely on its investment income. The Captive is included in the Company's consolidated financial statements and its federal income return.

Bank Owned Life Insurance

First Mid Bank has purchased life insurance policies on certain senior management. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts that are probable at settlement.

Revenue Recognition

Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), establishes a revenue recognition model for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Most of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans and investment securities, and revenue related to mortgage servicing activities, which are subject to other accounting standards. A description of the revenue-generating activities that are within the scope of ASC 606, and included in other income in the Company’s condensed consolidated statements of income are as follows:

Trust revenues. The Company generates fee income from providing fiduciary services through its subsidiary, First Mid Wealth Management Company. Fees are billed in arrears based upon the preceding period account balance. Revenue from farm management services is recorded when the service is complete, for example when crops are sold.

Brokerage commissions. Revenue is recorded at the beginning of each quarter through billing to customers based on the account asset size on the last day of the previous quarter. If a withdrawal of funds takes place, a prorated refund may occur; this is reflected within the same quarter as the original billing occurred. All performance obligations are met within the same quarter that the revenue is recorded.

Insurance commissions. The Company’s insurance agency subsidiary, First Mid Insurance, receives commissions on premiums of new and renewed business policies. First Mid Insurance records commission revenue on direct bill policies as the cash is received. For agency bill policies, First Mid Insurance retains its commission portion of the customer premium payment and remits the balance to the carrier. In both cases, the entire performance obligation is held by the carriers.

Service charges on deposits. The Company generates revenue from fees charged for deposit account maintenance, overdrafts, wire transfers, and check fees. The revenue related to deposit fees is recognized at the time the performance obligation is satisfied.

ATM/debit card revenue. The Company generates revenue through service charges on the use of its ATM machines and interchange income from the use of Company issued credit and debit cards. The revenue is recognized at the time the service is used and the performance obligation is satisfied.

Other income. Treasury management fees and lock box fees are received and recorded after the service performance obligation is completed. Merchant bank card fees are received from various vendors; however, the performance obligation is with the vendors. The Company records gains on the sale of loans and the sale of OREO properties after the transactions are complete and transfer of ownership has occurred.

As each of the Company’s facilities is in markets with similar economies, no disaggregation of revenue is necessary.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in stockholders’ equity as of September 30, 2024 and December 31, 2023 are as follows (in thousands):

	Unrealized Losses on Securities
September 30, 2024
Net unrealized losses on securities available-for-sale	$	(159,109	)
Tax benefit		42,417
Balance at September 30, 2024	$	(116,692	)
December 31, 2023
Net unrealized losses on securities available-for-sale	$	(192,149	)
Tax benefit		55,722
Balance at December 31, 2023	$	(136,427	)

Amounts reclassified from accumulated other comprehensive loss and the affected line items in the statements of income during the three and nine months ended September 30, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities	$	(277	)	$	3,389		$	(433	)	$	3,337		Securities (loss) gain, net
Tax effect		77			(983	)		119			(968	)	Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)	$	(200	)	$	2,406		$	(314	)	$	2,369		Net reclassified amount

See “Note 3 – Investment Securities” for more detailed information regarding unrealized losses on available-for-sale securities.

New Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures. The amendments expand the disclosure requirements of income taxes, primarily related to the income tax rate reconciliation and income taxes paid with the intention to enhance transparency and decision usefulness of income tax disclosures. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this accounting pronouncement will have no impact on the Financial Statements aside from additional disclosures presented in the Notes to Consolidated Financial Statements.

In November 2023, the Financial Accounting Standards Board issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update require annual and interim disclosures on significant segment expenses that are regularly provided to the chief operating decision maker and require annual and interim disclosures on “other segment items” that comprise the difference between segment revenue less segment expense compared to the reported measure of segment profit or loss. In addition, the amendments will require all annual disclosures that are currently required to be reported on an interim basis and requires disclosure of the title and position of the chief operating decision maker and how that position uses the information to assess segment performance and the allocation of resources. ASU 2023-07 also requires entities that have a single reportable segment, such as the Company, to provide all disclosures required in this update and the existing segment disclosures in Topic 280. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of ASU 2023-07 and does not expect them to have a material effect on the consolidated financial statements.

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Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Note 2 -- Earnings Per Share

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding. Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the Company’s stock options, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the three and nine months ended September 30, 2024 and 2023 were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Basic net income per common share
Available to common stockholders:
Net income	$	19,482,000	$	15,117,000	$	59,730,000	$	50,864,000
Weighted average common shares outstanding		23,905,099		22,220,438		23,891,430		21,086,802
Basic earnings per common share	$	0.81	$	0.68	$	2.50	$	2.41
Diluted net income per common share
Available to common stockholders:
Net income applicable to diluted earnings per share	$	19,482,000	$	15,117,000	$	59,730,000	$	50,864,000
Weighted average common shares outstanding		23,905,099		22,220,438		23,891,430		21,086,802
Dilutive potential common shares: restricted stock awarded		101,548		98,896		97,048		90,144
Diluted weighted average common shares outstanding		24,006,647		22,319,334		23,988,478		21,176,946
Diluted earnings per common share	$	0.81	$	0.68	$	2.49	$	2.40

There were no shares excluded when computing diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 because they were anti-dilutive.

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Investment Securities

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 3 -- Investment Securities

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at September 30, 2024 and December 31, 2023 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	212,259	$	1	$	(18,091	)	$	194,169
Obligations of states and political subdivisions		326,751		255		(46,562	)		280,444
Mortgage-backed securities: GSE residential		668,554		1,564		(93,269	)		576,849
Other securities		67,097		—		(3,007	)		64,090
Total available-for-sale	$	1,274,661	$	1,820	$	(160,929	)	$	1,115,552
Held-to-maturity:
Other investments	$	2,298	$	—	$	—		$	2,298
Total held-to-maturity	$	2,298	$	—	$	—		$	2,298
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	237,875	$	—	$	(26,219	)	$	211,656
Obligations of states and political subdivisions		337,835		152		(49,371	)		288,616
Mortgage-backed securities: GSE residential		714,216		1,158		(113,074	)		602,300
Other securities		73,795		—		(4,795	)		69,000
Total available-for-sale	$	1,363,721	$	1,310	$	(193,459	)	$	1,171,572
Held-to-maturity:
Other investments	$	2,286	$	—	$	—		$	2,286
Total held-to-maturity	$	2,286	$	—	$	—		$	2,286

The Company also had $4.4 million and $4.1 million of equity securities, at fair value, as of September 30, 2024 and December 31, 2023, respectively. The Company's held-to-maturity securities are annuities for which the risk of loss is minimal. As such, as of September 30, 2024, the Company did not record an allowance for credit losses on its held-to-maturity securities.

Realized gains and losses resulting from sales of securities were as follows during the three and nine months ended September 30, 2024 and 2023 (in thousands):

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Gross gains	$	11		$	3,823		$	46		$	3,829
Gross losses		(288	)		(434	)		(479	)		(492	)

The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at September 30, 2024 and the weighted average yield for each range of maturities (dollars in thousands):

	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	181,606		$	12,563		$	—		$	—		$	194,169
Obligations of state and political subdivisions		24,154			115,365			139,325			1,600			280,444
Mortgage-backed securities: GSE residential		3,068			4,677			34,374			534,730			576,849
Other securities		46,927			16,383			780			—			64,090
Total available-for-sale investments	$	255,755		$	148,988		$	174,479		$	536,330		$	1,115,552
Weighted average yield		2.04	%		2.38	%		2.26	%		1.81	%		2.01	%
Full tax-equivalent yield		2.11	%		2.88	%		2.70	%		1.83	%		2.17	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,298		$	2,298
Total held-to-maturity	$	—		$	—		$	—		$	2,298		$	2,298
Weighted average yield		—	%		—	%		—	%		—	%		—	%
Full tax-equivalent yield		—	%		—	%		—	%		—	%		—	%

The weighted average yields are calculated based on the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 21% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at September 30, 2024.

Investment securities carried at approximately $834.1 million and $831.0 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law.

The following table presents the aging of gross unrealized losses and fair value by investment category as of September 30, 2024 and December 31, 2023 (in thousands):

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	300	$	—		$	193,524	$	(18,091	)	$	193,824	$	(18,091	)
Obligations of states and political subdivisions		13,802		(833	)		251,107		(45,729	)		264,909		(46,562	)
Mortgage-backed securities: GSE residential		—		—			547,233		(93,269	)		547,233		(93,269	)
Other securities		—		—			58,340		(3,007	)		58,340		(3,007	)
Total	$	14,102	$	(833	)	$	1,050,204	$	(160,096	)	$	1,064,306	$	(160,929	)
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,288	$	(4	)	$	210,069	$	(26,215	)	$	211,357	$	(26,219	)
Obligations of states and political subdivisions		22,281		(333	)		241,630		(49,038	)		263,911		(49,371	)
Mortgage-backed securities: GSE residential		5,818		(67	)		566,197		(113,007	)		572,015		(113,074	)
Other securities		5,311		(439	)		57,939		(4,356	)		63,250		(4,795	)
Total	$	34,698	$	(843	)	$	1,075,835	$	(192,616	)	$	1,110,533	$	(193,459	)

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At September 30, 2024 there were twenty-eight available-for-sale securities with a fair value of $193.5 million and unrealized losses of $18.1 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were thirty-six available-for-sale securities with a fair value of $210.1 million and unrealized losses of $26.2 million in a continuous unrealized loss position for twelve months or more. There were no held-to-maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies in a continuous unrealized loss position for twelve months or more.

Obligations of states and political subdivisions. At September 30, 2024, there were two hundred forty-seven obligations of states and political subdivisions with a fair value of $251.1 million and unrealized losses of $45.7 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023 there were two hundred thirty-seven obligations of states and political subdivisions with a fair value of $241.6 million and unrealized losses of $49.0 million in a continuous unrealized loss position for twelve months or more.

Mortgage-backed Securities: GSE Residential. At September 30, 2024, there were two hundred forty-two mortgage-backed securities with a fair value of $547.2 million and unrealized losses of $93.3 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were two hundred sixty-three mortgage-backed securities with a fair value of $566.2 million and unrealized losses of $113.0 million in a continuous unrealized loss position for twelve months or more.

Other securities. At September 30, 2024, there were forty other securities with a fair value of $58.3 million and unrealized losses of $3.0 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were forty-three other securities with a fair value of $57.9 million and unrealized losses of $4.4 million in a continuous unrealized loss position for twelve months or more.

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Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loans and Allowance for Credit Losses

Note 4 – Loans and Allowance for Credit Losses

Loans are stated at amortized cost net of an allowance for credit losses. Amortized cost is the unpaid principal net of unearned premiums and discounts, and net deferred origination fees and costs. Deferred loan origination fees are reduced by loan origination costs and are amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding.

A summary of loans at September 30, 2024 and December 31, 2023 follows (in thousands):

	September 30, 2024		December 31, 2023
Construction and land development	$	192,327	$	207,033
Agricultural real estate		385,324		392,265
1-4 family residential properties		511,404		549,843
Multifamily residential properties		340,118		321,537
Commercial real estate		2,465,488		2,416,294
Loans secured by real estate		3,894,661		3,886,972
Agricultural loans		233,074		196,202
Commercial and industrial loans		1,288,940		1,273,637
Consumer loans		63,867		92,142
All other loans		175,217		184,609
Total gross loans		5,655,759		5,633,562
Less: loans held for sale		8,085		4,980
		5,647,674		5,628,582
Less:
Net deferred loan fees, premiums and discounts		41,168		52,997
Allowance for credit losses		68,774		68,675
Net loans	$	5,537,732	$	5,506,910

Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at fair value, taking into consideration future commitments to sell the loans. These loans are primarily for 1-4 family residential properties.

Accrued interest on loans, which is excluded from the amortized cost of the balances above, totaled $32.5 million and $29.9 million at September 30, 2024 and December 31, 2023, respectively.

Most of the Company’s business activities are with customers located near the Company's branch locations in Illinois, Missouri, Texas, and Wisconsin. At September 30, 2024, the Company’s loan portfolio included $618.4 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $508.2 million was concentrated in corn and other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $29.9 million from $588.5 million at December 31, 2023 due to seasonal timing of cash flow requirements. Loans concentrated in corn and other grain farming increased $35.8 million from $472.5 million at December 31, 2023. The Company's underwriting practices include collateralization of loans. Any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio.

In addition, the Company has $226.7 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific issues as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $1.1 billion of loans to lessors of non-residential buildings, and $559.7 million of loans to lessors of residential buildings and dwellings.

The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the board of directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation and most borrowers are below regulatory thresholds. The Company can occasionally have outstanding balances to one borrower up to but not exceeding the regulatory threshold should underwriting guidelines warrant. Most of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments.

The Company’s lending can be summarized into the following primary areas:

Commercial Real Estate Loans. Commercial real estate loans are generally comprised of loans to small business entities to purchase or expand structures in which the business operations are housed, loans to owners of real estate who lease space to non-related commercial entities, loans for construction and land development, loans to hotel operators, and loans to owners of multi-family residential structures, such as apartment buildings. Commercial real estate loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. For the various types of commercial real estate loans, minimum criteria have been established within the Company’s loan policy regarding debt service coverage while maximum limits on loan-to-value and amortization periods have been defined. Maximum loan-to-value ratios range from 65% to 80% depending upon the type of real estate collateral, while the desired minimum debt coverage ratio is 1.20x. Amortization periods for commercial real estate loans are generally limited to twenty or twenty five years, depending on the loan-to-value. The Company’s commercial real estate portfolio is below the thresholds that would designate a concentration in commercial real estate lending, as established by the federal banking regulators.

The following table represents the gross commercial real estate loans by property type as of September 30, 2024 (in thousands):

	September 30, 2024
Commercial real estate
Owner occupied	$	793,289
Non owner occupied
Shopping centers and malls		248,182
Industrial and warehouse		225,889
Hotels and motels		212,145
Skilled nursing facility		163,030
Office		149,736
Retail		116,988
Assisted living facility		115,860
Medical office		96,539
Other property types		343,830
Total commercial real estate	$	2,465,488

Commercial and Industrial Loans. Commercial and industrial loans are primarily comprised of working capital loans used to purchase inventory and fund accounts receivable that are secured by business assets other than real estate. These loans are generally written for one year or less. Also, equipment financing is provided to businesses with these loans generally limited to 80% of the value of the collateral and amortization periods limited to seven years. Commercial loans are often accompanied by a personal guaranty of the principal owners of a business. Like commercial real estate loans, the underlying cash flow of the business is the primary consideration in the underwriting process. The financial condition of commercial borrowers is monitored at least annually with the type of financial information required determined by the size of the relationship. Measures employed by the Company for businesses with higher risk profiles include the use of government- assisted lending programs through the Small Business Administration and U.S. Department of Agriculture.

Agricultural and Agricultural Real Estate Loans. Agricultural loans are generally comprised of seasonal operating lines to cash grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop. Loan-to-value ratios on loans secured by farmland generally do not exceed 65% and have amortization periods limited to twenty-five years. Federal government-assistance lending programs through the Farm Service Agency are used to mitigate the level of credit risk when deemed appropriate.

Residential Real Estate Loans. Residential real estate loans generally include loans for the purchase or refinance of residential real estate properties consisting of one-to-four units and home equity loans and lines of credit. The Company sells most of its long-term fixed rate residential real estate loans to secondary market investors. The Company also releases the servicing of these loans upon sale. Residential real estate loans are typically underwritten to conform to industry standards including criteria for maximum debt-to-income and loan-to-value ratios as well as minimum credit scores. Loans secured by first liens on residential real estate held in the portfolio typically do not exceed 80% of the value of the collateral and have amortization periods of twenty-five years or less. The Company does not originate subprime mortgage loans.

Consumer Loans. Consumer loans are primarily comprised of loans to individuals for personal and household purposes such as the purchase of an automobile or other living expenses. Minimum underwriting criteria have been established that consider credit score, debt-to-income ratio, employment history, and collateral coverage. Typically, consumer loans are set up on monthly payments with amortization periods based on the type and age of the collateral.

Other Loans. Other loans consist primarily of loans to municipalities to support community projects such as infrastructure improvements or equipment purchases. Underwriting guidelines for these loans are consistent with those established for commercial loans with the additional repayment source of the taxing authority of the municipality.

Allowance for Credit Losses

The allowance for credit losses represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and modified loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating large individually evaluated loans separately from non-individually evaluated loans.

Individually Evaluated Loans

The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified via the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. For loans greater than $250,000, impairment is individually measured each quarter using one of three alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent

loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs.

Non-Individually Evaluated Loans

Non-individually evaluated loans comprise the vast majority of the Company’s total loan portfolio and include loans in accrual status and those credits not identified as modified loans. A small portion of these loans are considered “criticized” due to the risk rating assigned reflecting elevated credit risk due to characteristics, such as a strained cash flow position, associated with the individual borrowers. Criticized loans are those assigned risk ratings of Special Mention, Substandard, or Doubtful.

To determine the allowance, the loan portfolio is segmented based on similar risk characteristics. The allowance for credit losses is estimated using a discounted cash flow (DCF) methodology. The DCF projects future cash flows over the life of the loan portfolio. Probability of default (PD) and loss given default (LGD) are key components in calculating expected losses in this model. The PD is forecasted using a regression model that determines the likelihood of default with a forward-looking forecast of unemployment rates. The LGD is the percentage of defaulted loans that is ultimately charged off. The allowance is calculated as the net present value of the expected cash flows less the amortized cost basis of the loans. Prior to 2022, the allowance for credit losses was measured on a collective (pool) basis for non-individually evaluated loans with similar risk characteristics. Historical credit loss experience provided the basis for the estimate of expected credit losses. Adjustments to expected losses are made using qualitative factors for relevant to each loan segment including merger & acquisition activity, economic conditions, changes in policies, procedures & underwriting, and concentrations. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

The Company also considers specific current economic events occurring globally, in the U.S. and in its local markets. Events considered include the status of trade agreements with China, scheduled increases in minimum wage and changes to the minimum salary threshold for overtime provisions, current and projected unemployment rates, current and projected grain and oil prices and economies of local markets where customers work and operate.

Within each pool, risk elements are evaluated that have specific impacts to the borrowers within the pool. These, along with the general risks and events, and the specific lending policies and procedures by loan type described above, are analyzed to estimate the qualitative factors used to adjust the historical loss rates.

During the current period, the following assumptions and factors were considered when determining the historical loss rate and any potential adjustments by loan pool.

Construction and Land Development Loans. Historical losses in this segment remain very low. While inflationary pressures have caused some risk in this segment, most projects are associated with financially strong borrowers. The qualitative factors for this segment increased by a minor amount for the quarter due to balances hitting 90% of an internal concentration threshold.

Agricultural Real Estate Loans. Historical losses in the segment remain very low. Farmland values have increased over an extended period of time and remained stable over the last year. There was no change to the qualitative factors for this segment.

Residential Real Estate Non Owner Occupied Loans. The loan segment has remained stable throughout the last several years. Both adversely classified and past dues have been consistent. There was no change to the qualitative factors for this segment.

Residential Real Estate Owner Occupied Loans. The loan segment has remained stable throughout the last several years. Both adversely classified and past dues have been consistent. There was no change to the qualitative factors for this segment.

HELOC Loans. These loans are a small segment to overall loan balances. In the period, past dues increased to a level that resulted in a significant increase to the qualitative factors for this segment.

Commercial Real Estate Owner Occupied Loans. This segment has remained stable, despite macro segment concerns over commercial real estate. The Company has previously increased qualitative factors for those conditions, but believes the stability in the portfolio and improvement in the macro-economic environment warranted a moderate decrease in the factor for the period.

Commercial Real Estate Non Owner Occupied Loans. This segment includes the Company's largest balances. While qualitative factors had been increased in past periods for the economic uncertainty in the macro conditions, the Company did not believe any additional changes were warranted other than minor decrease for falling below the internal concentration thresholds for factor adjustments.

Agricultural Loans. Losses in this segment are very low. Commodity prices have remained depressed for an extended period but yields have experienced increases from previous concerns from the weather. The qualitative factors of this segment were increased in

prior periods and the Company added to the factor again at a minor level.

Commercial and Industrial Loans. This segment includes the largest balance of allowance for credit losses. The qualitative factors for this segment were not changed in the periods as the allowance is viewed as appropriate for the current risk and outlook. Most of the repricing for higher rates in this loan segment has already occurred.

Consumer Loans. This segment is a small portion of the Company's loan portfolio. This segment will likely be impacted by any recession that may appear and already been impacted by the inflationary pressures. The current allowance for this segment is appropriate for the risk and, therefore, there were no changes to the qualitative factors period.

Acquired Loans. Prior to January 1, 2020 loans acquired with evidence of credit deterioration since origination and for which it was probable that all contractually required payments would not be collected were considered purchased credit impaired at the time of acquisition. Purchase credit-impaired ("PCI") loans were accounted for under ASC 310-30, Receivables--Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"), and were initially measured at fair value, which included the estimated future credit losses expected to be incurred over the life of the loan.

Accordingly, an allowance for credit losses related to these loans was not carried over and recorded at the acquisition date. The cash flows expected to be collected were estimated using current key assumptions, such as default rates, value of underlying collateral, severity and prepayment speeds.

Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans.

The following table presents the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2024 (in thousands):

	Construction and Land Development			Agricultural Real Estate			1-4 Family Residential Properties			Commercial Real Estate		Agricultural Loans			Commercial and Industrial		Consumer Loans		Total
Three months ended September 30, 2024
Beginning balance	$	2,646		$	1,372		$	3,580		$	32,918	$	885		$	24,931	$	1,980	$	68,312
Provision for credit loss expense		23			(30	)		55			349		(50	)		542		377		1,266
Loans charged off		—			—			42			451		—			1		840		1,334
Recoveries collected		5			—			88			9		25			97		306		530
Ending balance	$	2,674		$	1,342		$	3,681		$	32,825	$	860		$	25,569	$	1,823	$	68,774
Nine months ended September 30, 2024
Beginning balance	$	2,918		$	1,366		$	4,220		$	31,758	$	705		$	25,450	$	2,258	$	68,675
Provision for credit loss expense		(249	)		(24	)		(633	)		1,343		391			557		607		1,992
Loans charged off		—			—			143			451		261			643		1,640		3,138
Recoveries collected		5			—			237			175		25			205		598		1,245
Ending balance	$	2,674		$	1,342		$	3,681		$	32,825	$	860		$	25,569	$	1,823	$	68,774

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2023 and for the year ended December 31, 2023 (in thousands):

	Construction and Land Development		Agricultural Real Estate			1-4 Family Residential Properties		Commercial Real Estate		Agricultural Loans		Commercial and Industrial		Consumer Loans		Total
Three months ended September 30, 2023
Beginning balance	$	2,208	$	1,370		$	3,247	$	28,014	$	524	$	21,544	$	1,812	$	58,719
Initial allowance on loans purchased with credit deterioration		308		—			124		1,066		—		2,273		20		3,791
Provision for credit loss expense		219		27			629		2,727		245		1,697		367		5,911
Loans charged off		—		—			21		—		132		—		368		521
Recoveries collected		—		—			91		16		3		81		150		341
Ending balance	$	2,735	$	1,397		$	4,070	$	31,823	$	640	$	25,595	$	1,981	$	68,241
Nine months ended September 30, 2023
Beginning balance	$	2,250	$	1,433		$	3,742	$	28,157	$	585	$	20,808	$	2,118	$	59,093
Initial allowance on loans purchased with credit deterioration	$	308	$	—		$	124	$	1,066	$	—	$	2,273	$	20	$	3,791
Provision for credit loss expense		191		(36	)		88		2,278		450		2,202		379		5,552
Loans charged off		14		—			77		25		408		62		995		1,581
Recoveries collected		—		—			193		347		13		374		459		1,386
Ending balance	$	2,735	$	1,397		$	4,070	$	31,823	$	640	$	25,595	$	1,981	$	68,241
Twelve months ended December 31, 2023
Beginning Balance	$	2,250	$	1,433		$	3,742	$	28,157	$	585	$	20,808	$	2,118	$	59,093
Initial allowance on loans purchased with credit deterioration		308		—			124		1,066		—		2,273		20		3,791
Provision for credit loss expense		374		(67	)		225		1,755		490		2,322		1,005		6,104
Loans charged off		14		—			87		25		408		529		1,568		2,631
Recoveries collected		—		—			216		805		38		576		683		2,318
Ending balance	$	2,918	$	1,366		$	4,220	$	31,758	$	705	$	25,450	$	2,258	$	68,675

Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For individually evaluated loans that are considered solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to time frames established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.

The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of September 30, 2024 (in thousands):

	Collateral						Allowance
	Real Estate		Business Assets		Total		for Credit Losses
Agricultural real estate	$	533	$	—	$	533	$	—
1-4 family residential properties		—		—		—		—
Multifamily residential properties		970		—		970		—
Commercial real estate		7,767		—		7,767		141
Loans secured by real estate		9,270		—		9,270		141
Commercial and industrial loans		—		351		351		—
Total loans	$	9,270	$	351	$	9,621	$	141

Credit Quality

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, collateral support, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Company uses the following definitions for risk ratings which are commensurate with a loan considered “criticized”:

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 institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current sound-worthiness 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.

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, based on currently existing factors, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans.

The following tables present the credit risk profile of the Company’s loan portfolio on amortized cost basis based on risk rating category and year of origination as of September 30, 2024 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2024		2023		2022		2021		2020		Prior		Loans		Total
September 30, 2024
Construction and land development loans
Pass	$	48,615	$	78,688	$	19,261	$	16,051	$	5,290	$	22,542	$	—	$	190,447
Special mention		—		—		—		—		—		390		—		390
Substandard		—		—		6		—		—		14		—		20
Total	$	48,615	$	78,688	$	19,267	$	16,051	$	5,290	$	22,946	$	—	$	190,857
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	15,266	$	18,873	$	157,635	$	54,503	$	51,161	$	80,611	$	—	$	378,049
Special mention		1,170		196		—		989		—		2,028		—		4,383
Substandard		—		141		966		—		—		1,081		—		2,188
Total	$	16,436	$	19,210	$	158,601	$	55,492	$	51,161	$	83,720	$	—	$	384,620
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	38,471	$	38,789	$	76,277	$	78,970	$	65,886	$	117,084	$	77,910	$	493,387
Special mention		—		—		207		77		—		562		88		934
Substandard		163		625		904		531		822		7,337		639		11,021
Total	$	38,634	$	39,414	$	77,388	$	79,578	$	66,708	$	124,983	$	78,637	$	505,342
Current period gross writeoffs	$	—	$	36	$	10	$	—	$	—	$	97	$	—	$	143
Commercial real estate loans
Pass	$	149,862	$	235,559	$	711,647	$	542,617	$	305,947	$	806,776	$	—	$	2,752,408
Special mention		363		—		4,174		2,051		291		7,367		—		14,246
Substandard		—		49		3,526		476		—		7,582		—		11,633
Total	$	150,225	$	235,608	$	719,347	$	545,144	$	306,238	$	821,725	$	—	$	2,778,287
Current period gross writeoffs	$	—	$	—	$	151	$	—	$	—	$	300	$	—	$	451
Agricultural loans
Pass	$	127,739	$	54,805	$	25,999	$	15,584	$	3,110	$	3,917	$	—	$	231,154
Special mention		327		302		—		—		—		—		—		629
Substandard		53		1,561		17		—		—		—		—		1,631
Total	$	128,119	$	56,668	$	26,016	$	15,584	$	3,110	$	3,917	$	—	$	233,414
Current period gross writeoffs	$	—	$	64	$	100	$	52	$	—	$	45	$	—	$	261
Commercial and industrial loans
Pass	$	171,046	$	262,373	$	282,671	$	197,515	$	124,654	$	401,109	$	—	$	1,439,368
Special mention		189		1,031		1,388		5,927		1,347		7,662		—		17,545
Substandard		65		765		247		185		18		656		—		1,936
Total	$	171,300	$	264,169	$	284,306	$	203,627	$	126,019	$	409,427	$	—	$	1,458,849
Current period gross writeoffs	$	—	$	47	$	207	$	378	$	10	$	1	$	—	$	643
Consumer loans
Pass	$	4,678	$	6,171	$	27,723	$	13,491	$	5,671	$	4,856	$	—	$	62,590
Special mention		—		—		24		—		—		—		—		24
Substandard		—		30		253		191		103		31		—		608
Total	$	4,678	$	6,201	$	28,000	$	13,682	$	5,774	$	4,887	$	—	$	63,222
Current period gross writeoffs	$	71	$	43	$	154	$	126	$	48	$	1,198	$	—	$	1,640
Total loans
Pass	$	555,677	$	695,258	$	1,301,213	$	918,731	$	561,719	$	1,436,895	$	77,910	$	5,547,403
Special mention		2,049		1,529		5,793		9,044		1,638		18,009		88		38,151
Substandard		281		3,171		5,919		1,383		943		16,701		639		29,037
Total	$	558,007	$	699,958	$	1,312,925	$	929,158	$	564,300	$	1,471,605	$	78,637	$	5,614,591
Current period gross writeoffs	$	71	$	190	$	622	$	556	$	58	$	1,641	$	—	$	3,138

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2023 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2023		2022		2021		2020		2019		Prior		Loans		Total
December 31, 2023
Construction and land development loans
Pass	$	68,086	$	74,065	$	27,392	$	5,188	$	10,795	$	19,115	$	—	$	204,641
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		436		—		436
Total	$	68,086	$	74,065	$	27,392	$	5,188	$	10,795	$	19,551	$	—	$	205,077
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	14	$	—	$	—	$	14
Agricultural real estate loans
Pass	$	19,231	$	164,812	$	57,815	$	53,249	$	19,419	$	71,189	$	—	$	385,715
Special mention		206		—		627		—		1,170		1,868		—		3,871
Substandard		—		—		371		—		—		1,175		—		1,546
Total	$	19,437	$	164,812	$	58,813	$	53,249	$	20,589	$	74,232	$	—	$	391,132
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	66,119	$	96,995	$	79,085	$	73,073	$	26,854	$	105,257	$	75,700	$	523,083
Special mention		—		967		3,184		—		—		3,804		10		7,965
Substandard		152		759		460		396		288		8,865		501		11,421
Total	$	66,271	$	98,721	$	82,729	$	73,469	$	27,142	$	117,926	$	76,211	$	542,469
Current period gross writeoffs	$	10	$	—	$	—	$	—	$	14	$	63	$	—	$	87
Commercial real estate loans
Pass	$	185,628	$	680,099	$	548,733	$	317,075	$	239,323	$	701,464	$	—	$	2,672,322
Special mention		3,666		2,706		1,317		2,159		1,563		7,778		—		19,189
Substandard		—		3,899		520		20		775		7,108		—		12,322
Total	$	189,294	$	686,704	$	550,570	$	319,254	$	241,661	$	716,350	$	—	$	2,703,833
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	25	$	—	$	—	$	25
Agricultural loans
Pass	$	147,993	$	27,895	$	10,044	$	2,549	$	1,883	$	5,854	$	—	$	196,218
Special mention		6		10		—		—		38		—		—		54
Substandard		—		—		—		—		—		—		—		—
Total	$	147,999	$	27,905	$	10,044	$	2,549	$	1,921	$	5,854	$	—	$	196,272
Current period gross writeoffs	$	—	$	276	$	—	$	—	$	—	$	132	$	—	$	408
Commercial and industrial loans
Pass	$	290,304	$	306,794	$	232,198	$	154,499	$	73,906	$	347,957	$	—	$	1,405,658
Special mention		1,047		1,857		9,982		562		597		28,900		—		42,945
Substandard		—		537		791		58		29		750		—		2,165
Total	$	291,351	$	309,188	$	242,971	$	155,119	$	74,532	$	377,607	$	—	$	1,450,768
Current period gross writeoffs	$	—	$	353	$	—	$	49	$	20	$	107	$	—	$	529
Consumer loans
Pass	$	9,547	$	40,225	$	21,264	$	10,387	$	4,475	$	4,035	$	—	$	89,933
Special mention		—		26		—		—		—		—		—		26
Substandard		86		405		325		139		59		41		—		1,055
Total	$	9,633	$	40,656	$	21,589	$	10,526	$	4,534	$	4,076	$	—	$	91,014
Current period gross writeoffs	$	22	$	177	$	89	$	10	$	7	$	1,075	$	—	$	1,380
Total loans
Pass	$	786,908	$	1,390,885	$	976,531	$	616,020	$	376,655	$	1,254,871	$	75,700	$	5,477,570
Special mention		4,925		5,566		15,110		2,721		3,368		42,350		10		74,050
Substandard		238		5,600		2,467		613		1,151		18,375		501		28,945
Total	$	792,071	$	1,402,051	$	994,108	$	619,354	$	381,174	$	1,315,596	$	76,211	$	5,580,565
Current period gross writeoffs	$	10	$	761	$	208	$	51	$	93	$	1,508	$	—	$	2,631

The following table presents the Company’s loan portfolio aging analysis at September 30, 2024 and December 31, 2023 (in thousands):

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
September 30, 2024
Construction and land development	$	—	$	6	$	450	$	456	$	190,401	$	190,857	$	—
Agricultural real estate		141		—		392		533		384,087		384,620		—
1-4 family residential properties		3,081		1,334		2,188		6,603		498,739		505,342		—
Multifamily residential properties		—		—		551		551		337,616		338,167		—
Commercial real estate		581		170		7,561		8,312		2,431,808		2,440,120		—
Loans secured by real estate		3,803		1,510		11,142		16,455		3,842,651		3,859,106		—
Agricultural loans		—		1,190		—		1,190		232,224		233,414		—
Commercial and industrial loans		2,290		784		804		3,878		1,279,753		1,283,631		—
Consumer loans		273		73		135		481		62,741		63,222		—
All other loans		—		—		—		—		175,218		175,218		—
Total loans	$	6,366	$	3,557	$	12,081	$	22,004	$	5,592,587	$	5,614,591	$	—
December 31, 2023
Construction and land development	$	—	$	585	$	450	$	1,035	$	204,042	$	205,077	$	—
Agricultural real estate		—		—		1		1		391,131		391,132		—
1-4 family residential properties		3,054		530		1,018		4,602		537,867		542,469		—
Multifamily residential properties		150		—		551		701		318,428		319,129		—
Commercial real estate		819		74		3,765		4,658		2,380,046		2,384,704		—
Loans secured by real estate		4,023		1,189		5,785		10,997		3,831,514		3,842,511		—
Agricultural loans		—		—		—		—		196,272		196,272		—
Commercial and industrial loans		673		73		1,531		2,277		1,263,882		1,266,159		—
Consumer loans		983		162		330		1,475		89,539		91,014		—
All other loans		—		—		—		—		184,609		184,609		—
Total loans	$	5,679	$	1,424	$	7,646	$	14,749	$	5,565,816	$	5,580,565	$	—

Individually Evaluated Loans

Within all loan portfolio segments, loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Impaired loans, excluding certain modified, are placed on nonaccrual status. Impaired loans include nonaccrual loans and loans modified in restructuring where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status until, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. If the restructured loan is on accrual status prior to being modified, the loan is reviewed to determine if the modified loan should remain on accrual status.

The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is ninety days past due. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be modified is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.

The amount of interest income recognized by the Company within the periods stated above was due to loans modified in restructuring that remain on accrual status.

Non-Accrual Loans

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded as of September 30, 2024 and December 31, 2023 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

	September 30, 2024				December 31, 2023
	Nonaccrual with no Allowance for		Total		Nonaccrual with no Allowance for		Total
	Credit Loss		Nonaccrual		Credit Loss		Nonaccrual
Construction and land development	$	6	$	6	$	—	$	—
Agricultural real estate		1,647		1,647		1,146		1,146
1-4 family residential properties		3,726		4,840		4,679		4,940
Commercial real estate		6,567		9,419		10,237		10,237
Loans secured by real estate		11,946		15,912		16,062		16,323
Commercial and industrial loans		979		979		1,931		1,931
Consumer loans		257		257		578		578
Total loans	$	13,182	$	17,148	$	18,571	$	18,832

Interest income that would have been recorded under the original terms of such nonaccrual loans totaled $516,000 and $173,000 for the nine months ended September 30, 2024 and 2023, respectively.

Loan Modification Disclosures Pursuant to ASU 2022-02

The following table shows the amortized cost of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to outstanding loans is also presented below.

									Total
			Payment		Term		Interest		Class of
	Principal		Delay		Extension		Rate		Financing
	Forgiveness		Investment		Modifications		Reduction		Receivable
September 30, 2024
Agricultural real estate	$	—	$	312	$	—	$	—		0.01	%
1-4 family residential properties		—		47		768		—		0.01	%
Commercial real estate		—		874		212		472		0.03	%
Loans secured by real estate		—		1,233		980		472		0.05	%
Commercial and industrial loans		—		151		119		—		—	%
Consumer loans		—		3		10		—		—	%
Total	$	—	$	1,387	$	1,109	$	472		0.05	%
September 30, 2023
Agricultural real estate	$	—	$	333	$	—	$	—		0.01	%
1-4 family residential properties		—		57		819		—		0.02	%
Commercial real estate		—		770		137		—		0.02	%
Loans secured by real estate		—		1,160		956		—		0.04	%
Commercial and industrial loans		—		218		279		—		0.01	%
Consumer loans		—		7		41		—		—	%
Total	$	—	$	1,385	$	1,276	$	—		0.05	%

The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans that have been modified in the last twelve months ended September 30, 2024 and 2023.

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
September 30, 2024
1-4 family residential properties	$	—	$	—	$	—	$	—
Loans secured by real estate		—		—		—		—
Commercial and industrial loans		—		—		—		—
Consumer loans		—		96		116		212
Total loans	$	—	$	96	$	116	$	212
September 30, 2023
1-4 family residential properties	$	28	$	—	$	—	$	28
Loans secured by real estate		28		—		—		28
Commercial and industrial loans		11		—		—		11
Consumer loans		—		—		16		16
Total loans	$	39	$	—	$	16	$	55

The following table shows the financial effect of loan modifications during the current quarter to borrowers experiencing financial difficulty for the three months ended September 30, 2024 and 2023.

	Weighted Average			Weighted Average
	Interest Rate			Term Extension
	Reduction			(in months)
September 30, 2024
Commercial and industrial loans		—	%		7.00
Consumer loans		—	%		—
		—	%		7.00
September 30, 2023
Commercial and industrial loans		4.75	%		5.13
Consumer loans		—	%		3.00
		4.75	%		4.93

A loan is considered to be in payment default once it is 90 days past due under the modified terms. There were no loans modified during the prior twelve months that experienced defaults for nine months ended September 30, 2024 or for the three and nine months ended September 30, 2023.

Purchased Credit Deteriorated (PCD) Loans

The Company has acquired loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans at acquisition date is as follows (in thousands):

	2023
	Blackhawk Acquisition
Purchase price of purchase credit deteriorated loans at acquisition	$	115,250
Allowance for credit losses at acquisition		(3,791	)
Non-credit discount/(premium) at acquisition		(5,476	)
Fair value of purchased credit deteriorated loans at acquisition	$	105,983

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 5 -- Goodwill and Intangible Assets

The Company has goodwill from business combinations, intangible assets from branch acquisitions, identifiable intangible assets assigned to core deposit relationships and customer lists of First Mid Wealth Management Company and First Mid Insurance. The following table presents gross carrying value and accumulated amortization by major intangible asset class as of September 30, 2024 and December 31, 2023 (in thousands):

	September 30, 2024				December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization	$	207,151	$	3,760	$	200,221	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		79,945		42,411		79,945		34,966
Other intangibles		30,857		12,478		26,552		10,620
	$	320,968	$	61,664	$	309,733	$	52,361

Goodwill of $50.1 million was recorded for the acquisition and merger of Blackhawk Bancorp, Inc. during the third quarter of 2023. All of the goodwill was assigned to the banking division of the Company. The goodwill will not be deductible for tax purposes.

The following table provides a reconciliation of the purchase price paid for the acquisition of Blackhawk and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	26,955
Less purchase accounting adjustments:
Fair value of securities	$	(25,521	)
Fair value of loans, net		(43,477	)
Fair value of premises and equipment		(3,856	)
Fair value of time deposits		2,311
Fair value of subordinated and junior subordinated debentures		3,707
Increase in core deposit intangible		33,731
Increase in mortgage servicing rights		3,344
Other assets		6,619
					(23,142	)
				$	50,097

During the quarter ended September 30, 2024, goodwill of $6.9 million was recorded for the acquisition of the stock of Mid Rivers Insurance Group, Inc. (MRIG) in connection with its insurance business. First Mid Insurance was assigned all this goodwill. The following provides a reconciliation of the purchase price paid for Mid Rivers Insurance Group, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	10,059
Less purchase accounting adjustments:
Insurance Company intangible	$	4,305
Other liabilities		(1,176	)
					3,129
				$	6,930

During the quarter ended June 30, 2023, goodwill of $6.0 million was recorded for the acquisition of the stock of Purdum, Gray, Ingledue, Beck, Inc., in connection with its insurance business. First Mid Insurance was assigned all this goodwill. The following provides a reconciliation of the purchase price paid for Purdum, Gray, Ingledue, Beck, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	10,145
Less purchase accounting adjustments:
Insurance Company intangible	$	5,770
Other liabilities		(1,576	)
					4,194
				$	5,951

The Company has mortgage servicing rights acquired in previous acquisitions. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of September 30, 2024, September 30, 2023 and December 31, 2023 (in thousands):

	September 30, 2024			September 30, 2023			December 31, 2023
Beginning balance	$	6,859		$	331		$	331
Mortgage servicing rights acquired during period		—			7,062			7,070
Adjustment to valuation reserve		(77	)		0			(8	)
Mortgage servicing rights amortized		(939	)		(161	)		(524	)
Interest only strip		(8	)		(8	)		(10	)
Ending balance	$	5,835		$	7,224		$	6,859

Total amortization expense for three and nine months ended September 30, 2024 and 2023 was as follows (in thousands):

	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Core deposit intangibles	$	2,416	$	1,857	$	7,445	$	3,916
Customer list intangibles		702		578		1,858		1,490
Mortgage servicing rights		287		133		939		161
	$	3,405	$	2,568	$	10,242	$	5,567

Aggregate amortization expense for the current year and estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):

Aggregate amortization expense:
For period 01/01/24 - 09/30/24	$	10,242
Estimated amortization expense:
For period 10/01/24 - 12/31/24		3,436
For year ended 12/31/25		12,310
For year ended 12/31/26		10,594
For year ended 12/31/27		9,330
For year ended 12/31/28		8,116

In accordance with the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets,” codified within ASC 350, the Company performed testing of goodwill for impairment as of September 30, 2024 and determined that, as of that date, goodwill was not impaired. Management also concluded that the remaining amounts and amortization periods were appropriate for all intangible assets.

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Repurchase Agreements and Other Borrowings

9 Months Ended

Sep. 30, 2024

Repurchase Agreements And Other Borrowings [Abstract]

Repurchase Agreements and Other Borrowings

Note 6 -- Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase were $204.3 million at September 30, 2024, a decrease of $9.4 million from $213.7 million at December 31, 2023. All the transactions have overnight maturities with a weighted average rate of 3.05%.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third-party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential of over-collateralization in the event of counterparty default.

Collateral pledged by class for repurchase agreements are as follows (in thousands):

	September 30, 2024		December 31, 2023
US Treasury securities and obligations of U.S. government corporations and agencies	$	63,127	$	46,544
Mortgage-backed securities: GSE: residential		141,216		167,177
Total	$	204,343	$	213,721

Gross FHLB borrowings, were $238.6 million and $263.6 million at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024 the advances were as follows:

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	2.0	4.59%	November 8, 2024
	10,000,000	5.0	1.45%	December 31, 2024
	5,000,000	5.0	0.91%	March 10, 2025
	3,605,826	10.0	2.64%	December 23, 2025
	25,000,000	3.0	4.40%	June 15, 2026
	25,000,000	3.0	4.37%	May 10, 2027
	25,000,000	3.0	4.32%	May 17, 2027
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.93%	June 27, 2029
	5,000,000	10.0	1.15%	October 3, 2029
	5,000,000	10.0	1.12%	October 3, 2029
	10,000,000	10.0	1.39%	December 31, 2029

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Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Note 7 -- Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the inputs and valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Available-for-Sale Securities. The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independent sources of market parameters, including but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Fair value determinations for Level 3 measurements of securities are the responsibility of the Treasury function of the Company. The Company contracts with a pricing specialist to generate fair value estimates on a monthly basis. The Treasury function of the Company challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with accounting standards generally accepted in the United States, analyzes the changes in fair value and compares these changes to internally developed expectations and monitors these changes for appropriateness.

Loans Held for Sale. The fair value of loans held for sale is based on independent asset pricing services which use observable market data as of the measurement date and are therefore classified in Level 2 of the valuation hierarchy.

Derivatives. The fair value of derivatives is based on models using observable market data as of the measurement date and are therefore classified in Level 2 of the valuation hierarchy.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of September 30, 2024 and December 31, 2023 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	194,169	$	—	$	194,169	$	—
Obligations of states and political subdivisions		280,444		—		280,444		—
Mortgage-backed securities		576,849		—		576,849		—
Other securities		64,090		—		58,123		5,967
Total available-for-sale securities		1,115,552		—		1,109,585		5,967
Equity securities		4,424		4,424		—		—
Loans held for sale		8,085		—		8,085		—
Derivative assets: interest rate swaps		2,339		—		2,339		—
Total assets	$	1,130,400	$	4,424	$	1,120,009	$	5,967
Derivative liabilities: interest rate swaps	$	1,755	$	—	$	1,755	$	—
December 31, 2023
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	211,656	$	—	$	211,656	$	—
Obligations of states and political subdivisions		288,616		—		288,616		—
Mortgage-backed securities		602,300		—		602,300		—
Other securities		69,000		—		62,837		6,163
Total available-for-sale securities		1,171,572		—		1,165,409		6,163
Equity securities		4,074		4,074		—		—
Loans held for sale		4,980		—		4,980		—
Derivative assets: interest rate swaps		3,166		—		3,166		—
Total assets	$	1,183,792	$	4,074	$	1,173,555	$	6,163
Derivative liabilities: interest swaps	$	2,217	$	—	$	2,217	$	—

The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023 is summarized as follows (in thousands):

	Three months ended September 30, 2024						Nine months ended September 30, 2024
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,966	$	5,966	$	—	$	6,163		$	6,163
Transfers into Level 3		—		1		1		—		3			3
Maturities		—		—		—		—		(199	)		(199	)
Ending balance	$	—	$	5,967	$	5,967	$	—	$	5,967		$	5,967
	Three months ended September 30, 2023						Nine months ended September 30, 2023
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,760	$	5,760	$	—	$	10,000		$	10,000
Transfers into Level 3		—		—		—		—		10			10
Transfers out of Level 3		—		—		—		—		(4,250	)		(4,250	)
Ending balance	$	—	$	5,760	$	5,760	$	—	$	5,760		$	5,760

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Collateral Dependent Loans. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment and estimating fair value include using the fair value of the collateral for collateral dependent loans.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value, which includes selling costs. Individually evaluated loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.

Management establishes a specific allowance for individually evaluated loans that have an estimated fair value that is below the carrying value. The total carrying amount of loans for which a change in specific allowance has occurred as of September 30, 2024 was $594,000 and a fair value of $579,000 resulting in specific loss exposures of $15,000.

When there is little prospect of collecting principal or interest, loans, or portions of loans, may be charged-off to the allowance for credit losses. Losses are recognized in the period an obligation becomes uncollectible. The recognition of a loss does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recovery may be affected in the future.

Foreclosed Assets Held For Sale. Other real estate owned acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for credit losses. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned, or foreclosed asset could differ from the original estimate. If it is determined that fair value declines subsequent to foreclosure, a valuation allowance is recorded through noninterest expense. Operating costs associated with the assets after acquisition are also recorded as noninterest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other noninterest expense. The total carrying amount of other real estate owned as of September 30, 2024 was $1.8 million. Other real estate owned included in the total carrying amount and measured at fair value on a nonrecurring basis during the period amounted to $47,000.

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2024 and December 31, 2023 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2024
Collateral dependent loans	$	579	$	—	$	—	$	579
Foreclosed assets held for sale		47		—		—		47
December 31, 2023
Collateral dependent loans	$	1,028	$	—	$	—	$	1,028
Foreclosed assets held for sale		24		—		—		24

Sensitivity of Significant Unobservable Inputs

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at September 30, 2024 and December 31, 2023.

September 30, 2024	Fair Value	Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$579	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	20%
Foreclosed assets held for sale	47	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	1,028	Third party valuations	Discount to reflect realizable value	0% - 40%	20%
Foreclosed assets held for sale		24	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

The following tables present estimated fair values of the Company’s financial instruments at September 30, 2024 and December 31, 2023 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2024
Financial assets
Cash and due from banks	$	164,165	$	164,165	$	164,165	$	—	$	—
Federal funds sold		26		26		26		—		—
Certificates of deposit investments		3,500		3,500		—		3,500		—
Available-for-sale securities		1,115,552		1,115,552		—		1,109,585		5,967
Held-to-maturity securities		2,298		2,298		2,298		—		—
Equity securities		4,424		4,424		4,424		—		—
Loans held for sale		8,085		8,085		—		8,085		—
Loans net of allowance for credit losses		5,537,732		5,228,689		—		—		5,228,689
Interest receivable		38,387		38,387		—		38,387		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,555		9,555		—		9,555		—
Financial liabilities
Deposits	$	6,088,834	$	6,007,297	$	—	$	5,053,589	$	953,708
Securities sold under agreements to repurchase		204,343		204,343		—		204,343		—
Interest payable		6,491		6,491		—		6,491		—
Federal Home Loan Bank borrowings		238,712		238,911		—		238,911		—
Subordinated debt, net		87,373		85,637		—		104,836		—
Junior subordinated debentures, net		24,224		21,076		—		21,076		—
December 31, 2023
Financial assets
Cash and due from banks	$	134,082	$	134,082	$	134,082	$	—	$	—
Federal funds sold		8,982		8,982		8,982		—		—
Certificates of deposit investments		1,470		1,470		—		1,470		—
Available-for-sale securities		1,171,572		1,171,572		—		1,165,409		6,163
Held-to-maturity securities		2,286		2,286		2,286		—		—
Equity securities		4,074		4,074		4,074		—		—
Loans held for sale		4,980		4,980		—		4,980		—
Loans net of allowance for credit losses		5,506,910		5,235,525		—		—		5,235,525
Interest receivable		35,082		35,082		—		35,082		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,758		9,758		—		9,758		—
Financial liabilities
Deposits	$	6,123,659	$	6,042,277	$	—	$	5,076,066	$	966,211
Securities sold under agreements to repurchase		213,721		213,714		—		213,714		—
Interest payable		5,437		5,437		—		5,437		—
Federal Home Loan Bank borrowings		263,787		261,206		—		261,206		—
Subordinated debentures		106,755		102,018		—		102,018		—
Junior subordinated debentures		24,058		21,524		—		21,524		—

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Business Combinations

9 Months Ended

Sep. 30, 2024

Business Combinations [Abstract]

Business Combinations

Note 8 – Business Combinations

Blackhawk Bancorp, Inc.

On August 15, 2023, the Company completed its acquisition of Blackhawk Bancorp, Inc. (“Blackhawk”) pursuant to an Agreement and Plan of Merger Agreement, dated March 20, 2023 (the “Agreement”). Pursuant to the Agreement, Blackhawk was merged with and into the Company. Blackhawk shareholders received 1.15 shares of the Company's common stock for each share of Blackhawk common stock.

The Company accounted for the Blackhawk acquisition as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). ASC 805 requires assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of loans, core deposit

intangibles, mortgage servicing rights, time deposits, real property, and subordinated debt with the assistance of third-party valuations and appraisals.

A preliminary summary of the fair value of assets received and liabilities assumed are as follows:

(In thousands)
Assets
Cash and due from banks	$	55,600
Loans held for sale		3,222
Loans, net		722,866
Investments-available for sale		377,969
Short-term investments		869
FHLB stock		1,737
Premises and equipment		12,366
Accrued interest receivable		4,029
Prepaid expenses		1,182
Other assets		20,742
Core deposit intangible		34,590
Income tax receivable		2,077
Deferred tax asset		22,152
Mortgage servicing rights		7,031
Total assets acquired	$	1,266,432
Liabilities
Deposits	$	1,194,972
Subordinated and Junior Subordinated debt		16,448
Accrued interest payable		1,091
Accrued and other liabilities		10,508
Total liabilities assumed		1,223,019
Net assets acquired	$	43,413
Total consideration	$	93,510
Goodwill	$	50,097

The following table presents a summary of consideration transferred:

(In thousands, except shares)
Common stock issued (3,290,222 shares)	$	93,508
Cash consideration		2
Purchase price	$	93,510

The Company recorded $50.1 million of goodwill in connection with the acquisition of Blackhawk, none of which is deductible for tax purposes. The amount of goodwill recorded reflects the synergies and operational efficiencies that are expected to result from the acquisition. The descriptions below describe the methods used to determine the fair value of significant assets acquired and liabilities assumed, as presented above:

Loans, net. The fair value of the loan portfolio was calculated on an individual loan basis using a discounted cash flow analysis, with results presented and assumptions applied on a summary basis. This analysis took into consideration the contractual terms of the loans and assumptions related to the cost of debt, cost of equity, servicing cost and other liquidity/risk premium considerations to estimate the projected cash flows. The inputs and assumptions used in the fair value estimate of the loan portfolio include credit mark, discount rate, prepayment speed, and foreclosure lag. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans.

Core deposit intangible. The Company identified customer relationships, in the form of core deposit intangibles, as an identified intangible asset. Core deposit intangibles derive value from the expected future benefits or earnings capacity attributable to the acquired core deposits. The fair value of the core deposit intangible was estimated by identifying the expected future benefits of the core deposits and discounting those benefits back to present value. The core deposit intangible will be amortized over its estimated useful life of approximately 10 years using the sum of the months digits accelerated method.

Mortgage servicing rights. The Company identified residential mortgage servicing rights intangible asset and determined the fair value using a discounted cash flow analysis. The key inputs and assumptions used in the fair value estimate include prepayment assumptions, servicing costs, delinquencies, foreclosure costs, ancillary income, income earned on float & escrow, interest on escrow, internal rate of return and inflation.

Deposits. The fair value of demand deposit and interest checking deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities.

Subordinated and Junior Subordinated debt. The Subordinated and Junior Subordinated debt was fair valued using an income approach. Cash flows were calculated using an annualized contractual rate adjusted for forward interest costs and discounted using a variable discount rate.

Accounting for acquired loans. Loans acquired are recorded at fair value with no carryover of the related allowance for credit losses. Purchased-credit deteriorated loans (“PCD”) are loans that have experienced more than insignificant credit deterioration since origination and are recorded at the purchase price. The allowance for credit losses is determined at the loan level. The sum of the loan’s purchase price and the allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan.

Non-PCD loans have not experienced a more than insignificant deterioration in credit quality since origination. The difference between the fair value and outstanding balance of the non-PCD loans is recognized as an adjustment to interest income over the lives of the loan.

In accordance with ASC 326, Financial Instruments – Credit Losses, immediately following the acquisition the Company established a $3.8 million allowance for credit losses on the $618.33 million of acquired non-PCD loans through provision for credit losses in the consolidated statement of operations.

The following table provides a summary of PCD loans purchased as part of the Blackhawk acquisition as of the acquisition date:

(In thousands)
Unpaid principal balance	$	115,250
PCD allowance for credit losses at acquisition		(3,791	)
Non-credit discount on acquired loans		(5,476	)
Fair value of PCD loans	$	105,983

The following unaudited pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the Blackhawk Merger taken place at the beginning of the period (dollars in thousands, except per share data):

	Three months ended		Nine months ended
	September 30,		September 30,
	2023		2023
Net interest income	$	57,245	$	171,635
Provision for credit losses		6,246		6,768
Non-interest income		25,205		73,892
Non-interest expense		60,741		166,430
Income before taxes		15,463		72,329
Income tax expense		3,830		17,069
Net income	$	11,633	$	55,260
Earnings per share
Basic	$	0.52	$	2.62
Diluted	$	0.52	$	2.61
Basic weighted average shares o/s		22,220,438		21,086,802
Diluted weighted average shares o/s		22,319,334		21,176,946

Acquisition costs are expensed as incurred as a component of non-interest expense and primarily include, but are not limited to, severance costs, professional services, data processing fees, and marketing and advertising expenses. The Company incurred acquisition costs related to the Blackhawk acquisition, pre-tax, of $2.5 million and $2.6 million, respectively, during the nine months ended September 30, 2024 and 2023 and $0.1 million and $2.1 million, respectively, during the three months ended September 30, 2024 and 2023.

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Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Note 9 -- Leases

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of September 30, 2024, substantially all the Company's leases are operating leases for real estate property for bank branches, ATM locations, and office space.

These leases are generally for periods of 1 to 25 years with various renewal options. The Company elected the optional transition method permitted by Topic 842. Under this method, the Company recognizes and measures leases that exist at the application date and prior comparative periods are not adjusted. In addition, the Company elected the package of practical expedients:

1.An entity need not reassess whether any expired or existing contracts contain leases.

2.An entity need not reassess the lease classification for any expired or existing leases.

3.An entity need not reassess initial direct costs for any existing leases.

The Company has also elected the practical expedient, which may be elected separately or in conjunction with the package noted above, to use hindsight in determining the lease term and in assessing the right-of-use assets. This expedient must be applied consistently to all leases. Lastly, the Company has elected to use the practical expedient to include both lease and non-lease components as a single component and account for it as a lease. In addition, the Company has elected to not include short-term leases (i.e. leases with terms of twelve months or less) or equipment leases (primarily copiers) deemed immaterial, on the consolidated balance sheets.

For leases in effect at January 1, 2019 and for leases commencing thereafter, the Company recognizes a lease liability and a right-of-use asset, based on the present value of lease payments over the lease term. The discount rate used in determining present value was the Company's incremental borrowing rate which is the FHLB fixed advance rate based on the remaining lease term as of January 1, 2019, or the commencement date for leases subsequently entered into.

The following table contains supplemental balance sheet information related to leases (dollars in thousands):

	September 30, 2024			September 30, 2023			December 31, 2023
Operating lease right-of-use assets	$	14,560		$	14,192		$	14,306
Operating lease liabilities		14,873			14,503			14,615
Weighted-average remaining lease term (in years)		4.9			5.0		4.9
Weighted-average discount rate		3.18	%		2.75	%		3.21	%

Certain of the Company's leases contain options to renew the lease; however, not all renewal options are included in the calculation of lease liabilities as they are not reasonably certain to be exercised. The Company's leases do not contain residual value guarantees or material variable lease payments. The Company does not have any other material restrictions or covenants imposed by leases that would impact the Company's ability to pay dividends or cause the Company to incur additional financial obligations.

Maturities of lease liabilities are as follows (in thousands):

Year ending December 31,
2024	$	1,124
2025		3,097
2026		2,916
2027		2,687
2028		2,076
Thereafter		4,851
Total lease payments		16,751
Less imputed interest		(1,878	)
Total lease liability	$	14,873

The components of lease expense for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Operating lease cost	$	885		$	870		$	2,553		$	2,448
Short-term lease cost		23			24			89			51
Variable lease cost		216			163			572			577
Total lease cost		1,124			1,057			3,214			3,076
Income from subleases		(110	)		(94	)		(317	)		(281	)
Net lease cost	$	1,014		$	963		$	2,897		$	2,795

As the Company elected not to separate lease and non-lease components, the variable lease cost primarily represents variable payment such as common area maintenance and copier expense. The Company does not have any material sub-lease agreements. Cash paid for amounts included in the measurement of lease liabilities was (in thousands):

	September 30, 2024		September 30, 2023
Operating cash flows from operating leases	$	2,502	$	2,414

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Derivatives

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Note 10 – Derivatives

The Company utilizes an interest rate swap, designated as a fair value hedge, to mitigate the risk of changing interest rates on the fair value of a fixed rate commercial real estate loan. For derivative instruments that are designed and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting loss or gain in the hedged asset attributable to the hedged risk, is recognized in current earnings.

Derivatives Designated as Hedging Instruments

The following table provides the outstanding notional balances and fair values of outstanding derivatives designated as hedging instruments as of September 30, 2024 and December 31, 2023 (in thousands):

	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
September 30, 2024
Fair value hedges:
Interest rate swap agreements	Other liabilities	4.6	$	12,662	$	(1,755	)
December 31, 2023
Fair value hedges:
Interest rate swap agreements	Other liabilities	5.3	$	12,976	$	(2,217	)

The effects of the fair value hedges on the Company's income statement during the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):

		Three months ended					Nine months ended
		September 30,					September 30,
Derivative	Location of Gain (Loss) on Derivatives	2024			2023		2024			2023
Interest rate swap agreements	Interest income on loans	$	(539	)	$	226	$	(364	)	$	264

		Three months ended					Nine months ended
		September 30,					September 30,
Derivative	Location of Gain (Loss) on Hedged Items	2024		2023			2024		2023
Interest rate swap agreements	Interest income on loans	$	539	$	(226	)	$	364	$	(264	)

As of September 30, 2024, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustment for fair value hedges (in thousands):

Line Item in the Balance Sheet in Which the Hedge Item is Included	Carrying Amount of the Hedged Asset		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
Loans	$	12,078	$	(585	)

Derivatives Not Designated as Hedging Instruments

The following amounts represent the notional amounts and gross fair value of derivative contracts not designated as hedging instruments outstanding during the nine months ended September 30, 2024 (dollars in thousands):

September 30, 2024	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
Interest rate swap agreements	Other assets	4.2	$	29,389	$	2,339
Interest rate swap agreements	Other liabilities	4.2		29,389		(2,339	)

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Basis of Accounting and Consolidation (Policies)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting and Consolidation

The unaudited condensed consolidated financial statements include the accounts of First Mid Bancshares, Inc. (“Company”) and its wholly owned subsidiaries: First Mid Bank & Trust, N.A. (“First Mid Bank”), First Mid Wealth Management Company, First Mid Insurance Group, Inc. (“First Mid Insurance”), and First Mid Captive, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. The financial information reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods ended September 30, 2024 and 2023, and all such adjustments are of a normal recurring nature. Certain amounts in the prior year’s consolidated financial statements may have been reclassified to conform to the September 30, 2024 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended September 30, 2024 are not necessarily indicative of the results expected for the year ending December 31, 2024. The Company operates as a one-segment entity for financial reporting purposes. The 2023 year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and related footnote disclosures although the Company believes that the disclosures made are adequate to make the information not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K.

Acquisitions

Blackhawk Bancorp, Inc.

On March 20, 2023, First Mid Bancshares, Inc. (“First Mid”) and Eagle Sub LLC, a newly formed Wisconsin limited liability company and wholly-owned subsidiary of First Mid (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Blackhawk Bancorp, Inc., a Wisconsin corporation (“Blackhawk”), pursuant to which, among other things, First Mid agreed to acquire 100% of the issued and outstanding shares of Blackhawk pursuant to a business combination whereby Blackhawk will merge with and into Merger Sub, whereupon the separate corporate existence of Blackhawk will cease and Merger Sub will continue as the surviving company and a wholly-owned subsidiary of First Mid (the “Merger”).

Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $0.01 per share, of Blackhawk issued and outstanding immediately prior to the effective time of the Merger (other than shares held in treasury by Blackhawk and dissenting shares) were converted into and become the right to receive 1.15 shares of common stock, par value $4.00 per share, of First Mid and cash in lieu of fractional shares, less any applicable taxes required to be withheld, and subject to certain potential adjustments. On an aggregate basis, the total consideration payable by First Mid at the closing of the Merger to Blackhawk’s shareholders and equity award holders was 3,290,222 shares of First Mid common stock valued at $93.51 million and $1,928 of cash in lieu of fractional shares.

The Blackhawk Merger closed August 15, 2023 and Blackhawk Bank was merged into First Mid Bank on December 1, 2023.

General Litigation

General Litigation

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.

Stock Plans

Stock Plans

At the Annual Meeting of Stockholders held April 26, 2017, the stockholders approved the First Mid-Illinois Bancshares, Inc. 2017 Stock Incentive Plan (“SI Plan”). The SI Plan was implemented to succeed the Company’s 2007 Stock Incentive Plan, which had a ten-year term. The SI Plan is intended to provide a means whereby directors, employees, consultants and advisors of the Company and its subsidiaries may sustain a sense of proprietorship and personal involvement in the continued development and financial success of the Company and its subsidiaries, thereby advancing the interests of the Company and its stockholders. Accordingly, directors and selected employees, consultants and advisors may be provided the opportunity to acquire shares of common stock of the Company on the terms and conditions established in the SI Plan.

Following the stockholders’ approval at the 2021 annual meeting of the Company, a maximum of 399,983 shares of common stock may be issued under the SI Plan. There have been no stock options awarded under any Company plan since 2008. The Company has awarded 53,766 and 60,550 shares of restricted stock during the nine months ended September 30, 2024 and 2023, respectively, and 39,150 and 37,900 restricted stock units during the nine months ended September 30, 2024 and 2023, respectively.

Employee Stock Purchase Plan

Employee Stock Purchase Plan

At the Annual Meeting of Stockholders held April 25, 2018, the stockholders approved the First Mid-Illinois Bancshares, Inc. Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to promote the interests of the Company by providing eligible employees with the opportunity to purchase shares of common stock of the Company at a 15% discount through payroll deductions. The ESPP is also intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code.

A maximum of 600,000 shares of common stock may be issued under the ESPP. During the nine months ended September 30, 2024 and 2023, 25,319 shares and 28,762 shares, respectively, were issued pursuant to the ESPP.

Captive Insurance Company

Captive Insurance Company

First Mid Captive, Inc. (the “Captive"), a wholly owned subsidiary of the Company which was formed and began operations in December 2019, is a Nevada-based captive insurance company. The Captive insures against certain risks unique to operations of the Company and its subsidiaries for which insurance may not be currently available or economically feasible in today's insurance marketplace. The Captive pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. The Captive is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. It has elected to be taxed under Section 831(b) of the Internal Revenue Code. Pursuant to Section 831(b), if gross premiums do not exceed $2.8 million, then the Captive is taxable solely on its investment income. The Captive is included in the Company's consolidated financial statements and its federal income return.

Bank Owned Life Insurance

Bank Owned Life Insurance

First Mid Bank has purchased life insurance policies on certain senior management. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts that are probable at settlement.

Revenue Recognition

Revenue Recognition

Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), establishes a revenue recognition model for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Most of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans and investment securities, and revenue related to mortgage servicing activities, which are subject to other accounting standards. A description of the revenue-generating activities that are within the scope of ASC 606, and included in other income in the Company’s condensed consolidated statements of income are as follows:

Trust revenues. The Company generates fee income from providing fiduciary services through its subsidiary, First Mid Wealth Management Company. Fees are billed in arrears based upon the preceding period account balance. Revenue from farm management services is recorded when the service is complete, for example when crops are sold.

Brokerage commissions. Revenue is recorded at the beginning of each quarter through billing to customers based on the account asset size on the last day of the previous quarter. If a withdrawal of funds takes place, a prorated refund may occur; this is reflected within the same quarter as the original billing occurred. All performance obligations are met within the same quarter that the revenue is recorded.

Insurance commissions. The Company’s insurance agency subsidiary, First Mid Insurance, receives commissions on premiums of new and renewed business policies. First Mid Insurance records commission revenue on direct bill policies as the cash is received. For agency bill policies, First Mid Insurance retains its commission portion of the customer premium payment and remits the balance to the carrier. In both cases, the entire performance obligation is held by the carriers.

Service charges on deposits. The Company generates revenue from fees charged for deposit account maintenance, overdrafts, wire transfers, and check fees. The revenue related to deposit fees is recognized at the time the performance obligation is satisfied.

ATM/debit card revenue. The Company generates revenue through service charges on the use of its ATM machines and interchange income from the use of Company issued credit and debit cards. The revenue is recognized at the time the service is used and the performance obligation is satisfied.

Other income. Treasury management fees and lock box fees are received and recorded after the service performance obligation is completed. Merchant bank card fees are received from various vendors; however, the performance obligation is with the vendors. The Company records gains on the sale of loans and the sale of OREO properties after the transactions are complete and transfer of ownership has occurred.

As each of the Company’s facilities is in markets with similar economies, no disaggregation of revenue is necessary.

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in stockholders’ equity as of September 30, 2024 and December 31, 2023 are as follows (in thousands):

	Unrealized Losses on Securities
September 30, 2024
Net unrealized losses on securities available-for-sale	$	(159,109	)
Tax benefit		42,417
Balance at September 30, 2024	$	(116,692	)
December 31, 2023
Net unrealized losses on securities available-for-sale	$	(192,149	)
Tax benefit		55,722
Balance at December 31, 2023	$	(136,427	)

Amounts reclassified from accumulated other comprehensive loss and the affected line items in the statements of income during the three and nine months ended September 30, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities	$	(277	)	$	3,389		$	(433	)	$	3,337		Securities (loss) gain, net
Tax effect		77			(983	)		119			(968	)	Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)	$	(200	)	$	2,406		$	(314	)	$	2,369		Net reclassified amount

See “Note 3 – Investment Securities” for more detailed information regarding unrealized losses on available-for-sale securities.

New Accounting Pronouncements

New Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures. The amendments expand the disclosure requirements of income taxes, primarily related to the income tax rate reconciliation and income taxes paid with the intention to enhance transparency and decision usefulness of income tax disclosures. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this accounting pronouncement will have no impact on the Financial Statements aside from additional disclosures presented in the Notes to Consolidated Financial Statements.

In November 2023, the Financial Accounting Standards Board issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update require annual and interim disclosures on significant segment expenses that are regularly provided to the chief operating decision maker and require annual and interim disclosures on “other segment items” that comprise the difference between segment revenue less segment expense compared to the reported measure of segment profit or loss. In addition, the amendments will require all annual disclosures that are currently required to be reported on an interim basis and requires disclosure of the title and position of the chief operating decision maker and how that position uses the information to assess segment performance and the allocation of resources. ASU 2023-07 also requires entities that have a single reportable segment, such as the Company, to provide all disclosures required in this update and the existing segment disclosures in Topic 280. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of ASU 2023-07 and does not expect them to have a material effect on the consolidated financial statements.

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Basis of Accounting and Consolidation (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Components of Accumulated Other Comprehensive loss

The components of accumulated other comprehensive loss included in stockholders’ equity as of September 30, 2024 and December 31, 2023 are as follows (in thousands):

	Unrealized Losses on Securities
September 30, 2024
Net unrealized losses on securities available-for-sale	$	(159,109	)
Tax benefit		42,417
Balance at September 30, 2024	$	(116,692	)
December 31, 2023
Net unrealized losses on securities available-for-sale	$	(192,149	)
Tax benefit		55,722
Balance at December 31, 2023	$	(136,427	)

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income

Amounts reclassified from accumulated other comprehensive loss and the affected line items in the statements of income during the three and nine months ended September 30, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities	$	(277	)	$	3,389		$	(433	)	$	3,337		Securities (loss) gain, net
Tax effect		77			(983	)		119			(968	)	Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)	$	(200	)	$	2,406		$	(314	)	$	2,369		Net reclassified amount

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Components of Basic and Diluted Net Income per Common Share

The components of basic and diluted net income per common share available to common stockholders for the three and nine months ended September 30, 2024 and 2023 were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Basic net income per common share
Available to common stockholders:
Net income	$	19,482,000	$	15,117,000	$	59,730,000	$	50,864,000
Weighted average common shares outstanding		23,905,099		22,220,438		23,891,430		21,086,802
Basic earnings per common share	$	0.81	$	0.68	$	2.50	$	2.41
Diluted net income per common share
Available to common stockholders:
Net income applicable to diluted earnings per share	$	19,482,000	$	15,117,000	$	59,730,000	$	50,864,000
Weighted average common shares outstanding		23,905,099		22,220,438		23,891,430		21,086,802
Dilutive potential common shares: restricted stock awarded		101,548		98,896		97,048		90,144
Diluted weighted average common shares outstanding		24,006,647		22,319,334		23,988,478		21,176,946
Diluted earnings per common share	$	0.81	$	0.68	$	2.49	$	2.40

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Available for Sale and Held for Maturity Securities

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at September 30, 2024 and December 31, 2023 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	212,259	$	1	$	(18,091	)	$	194,169
Obligations of states and political subdivisions		326,751		255		(46,562	)		280,444
Mortgage-backed securities: GSE residential		668,554		1,564		(93,269	)		576,849
Other securities		67,097		—		(3,007	)		64,090
Total available-for-sale	$	1,274,661	$	1,820	$	(160,929	)	$	1,115,552
Held-to-maturity:
Other investments	$	2,298	$	—	$	—		$	2,298
Total held-to-maturity	$	2,298	$	—	$	—		$	2,298
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	237,875	$	—	$	(26,219	)	$	211,656
Obligations of states and political subdivisions		337,835		152		(49,371	)		288,616
Mortgage-backed securities: GSE residential		714,216		1,158		(113,074	)		602,300
Other securities		73,795		—		(4,795	)		69,000
Total available-for-sale	$	1,363,721	$	1,310	$	(193,459	)	$	1,171,572
Held-to-maturity:
Other investments	$	2,286	$	—	$	—		$	2,286
Total held-to-maturity	$	2,286	$	—	$	—		$	2,286

Realized Gains and Losses From Sale of Securities

Realized gains and losses resulting from sales of securities were as follows during the three and nine months ended September 30, 2024 and 2023 (in thousands):

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Gross gains	$	11		$	3,823		$	46		$	3,829
Gross losses		(288	)		(434	)		(479	)		(492	)

Investments Classified by Contractual Maturity Date

The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at September 30, 2024 and the weighted average yield for each range of maturities (dollars in thousands):

	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	181,606		$	12,563		$	—		$	—		$	194,169
Obligations of state and political subdivisions		24,154			115,365			139,325			1,600			280,444
Mortgage-backed securities: GSE residential		3,068			4,677			34,374			534,730			576,849
Other securities		46,927			16,383			780			—			64,090
Total available-for-sale investments	$	255,755		$	148,988		$	174,479		$	536,330		$	1,115,552
Weighted average yield		2.04	%		2.38	%		2.26	%		1.81	%		2.01	%
Full tax-equivalent yield		2.11	%		2.88	%		2.70	%		1.83	%		2.17	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,298		$	2,298
Total held-to-maturity	$	—		$	—		$	—		$	2,298		$	2,298
Weighted average yield		—	%		—	%		—	%		—	%		—	%
Full tax-equivalent yield		—	%		—	%		—	%		—	%		—	%

Fair Value of Investments with Sustained Gross Unrealized Losses

The following table presents the aging of gross unrealized losses and fair value by investment category as of September 30, 2024 and December 31, 2023 (in thousands):

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	300	$	—		$	193,524	$	(18,091	)	$	193,824	$	(18,091	)
Obligations of states and political subdivisions		13,802		(833	)		251,107		(45,729	)		264,909		(46,562	)
Mortgage-backed securities: GSE residential		—		—			547,233		(93,269	)		547,233		(93,269	)
Other securities		—		—			58,340		(3,007	)		58,340		(3,007	)
Total	$	14,102	$	(833	)	$	1,050,204	$	(160,096	)	$	1,064,306	$	(160,929	)
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,288	$	(4	)	$	210,069	$	(26,215	)	$	211,357	$	(26,219	)
Obligations of states and political subdivisions		22,281		(333	)		241,630		(49,038	)		263,911		(49,371	)
Mortgage-backed securities: GSE residential		5,818		(67	)		566,197		(113,007	)		572,015		(113,074	)
Other securities		5,311		(439	)		57,939		(4,356	)		63,250		(4,795	)
Total	$	34,698	$	(843	)	$	1,075,835	$	(192,616	)	$	1,110,533	$	(193,459	)

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Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Summary of Loans

A summary of loans at September 30, 2024 and December 31, 2023 follows (in thousands):

	September 30, 2024		December 31, 2023
Construction and land development	$	192,327	$	207,033
Agricultural real estate		385,324		392,265
1-4 family residential properties		511,404		549,843
Multifamily residential properties		340,118		321,537
Commercial real estate		2,465,488		2,416,294
Loans secured by real estate		3,894,661		3,886,972
Agricultural loans		233,074		196,202
Commercial and industrial loans		1,288,940		1,273,637
Consumer loans		63,867		92,142
All other loans		175,217		184,609
Total gross loans		5,655,759		5,633,562
Less: loans held for sale		8,085		4,980
		5,647,674		5,628,582
Less:
Net deferred loan fees, premiums and discounts		41,168		52,997
Allowance for credit losses		68,774		68,675
Net loans	$	5,537,732	$	5,506,910

Summary of Gross Commercial Real Esate Loans by Property Type

The following table represents the gross commercial real estate loans by property type as of September 30, 2024 (in thousands):

	September 30, 2024
Commercial real estate
Owner occupied	$	793,289
Non owner occupied
Shopping centers and malls		248,182
Industrial and warehouse		225,889
Hotels and motels		212,145
Skilled nursing facility		163,030
Office		149,736
Retail		116,988
Assisted living facility		115,860
Medical office		96,539
Other property types		343,830
Total commercial real estate	$	2,465,488

Allowance for Credit Losses Based on Portfolio Segment

The following table presents the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2024 (in thousands):

	Construction and Land Development			Agricultural Real Estate			1-4 Family Residential Properties			Commercial Real Estate		Agricultural Loans			Commercial and Industrial		Consumer Loans		Total
Three months ended September 30, 2024
Beginning balance	$	2,646		$	1,372		$	3,580		$	32,918	$	885		$	24,931	$	1,980	$	68,312
Provision for credit loss expense		23			(30	)		55			349		(50	)		542		377		1,266
Loans charged off		—			—			42			451		—			1		840		1,334
Recoveries collected		5			—			88			9		25			97		306		530
Ending balance	$	2,674		$	1,342		$	3,681		$	32,825	$	860		$	25,569	$	1,823	$	68,774
Nine months ended September 30, 2024
Beginning balance	$	2,918		$	1,366		$	4,220		$	31,758	$	705		$	25,450	$	2,258	$	68,675
Provision for credit loss expense		(249	)		(24	)		(633	)		1,343		391			557		607		1,992
Loans charged off		—			—			143			451		261			643		1,640		3,138
Recoveries collected		5			—			237			175		25			205		598		1,245
Ending balance	$	2,674		$	1,342		$	3,681		$	32,825	$	860		$	25,569	$	1,823	$	68,774

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2023 and for the year ended December 31, 2023 (in thousands):

	Construction and Land Development		Agricultural Real Estate			1-4 Family Residential Properties		Commercial Real Estate		Agricultural Loans		Commercial and Industrial		Consumer Loans		Total
Three months ended September 30, 2023
Beginning balance	$	2,208	$	1,370		$	3,247	$	28,014	$	524	$	21,544	$	1,812	$	58,719
Initial allowance on loans purchased with credit deterioration		308		—			124		1,066		—		2,273		20		3,791
Provision for credit loss expense		219		27			629		2,727		245		1,697		367		5,911
Loans charged off		—		—			21		—		132		—		368		521
Recoveries collected		—		—			91		16		3		81		150		341
Ending balance	$	2,735	$	1,397		$	4,070	$	31,823	$	640	$	25,595	$	1,981	$	68,241
Nine months ended September 30, 2023
Beginning balance	$	2,250	$	1,433		$	3,742	$	28,157	$	585	$	20,808	$	2,118	$	59,093
Initial allowance on loans purchased with credit deterioration	$	308	$	—		$	124	$	1,066	$	—	$	2,273	$	20	$	3,791
Provision for credit loss expense		191		(36	)		88		2,278		450		2,202		379		5,552
Loans charged off		14		—			77		25		408		62		995		1,581
Recoveries collected		—		—			193		347		13		374		459		1,386
Ending balance	$	2,735	$	1,397		$	4,070	$	31,823	$	640	$	25,595	$	1,981	$	68,241
Twelve months ended December 31, 2023
Beginning Balance	$	2,250	$	1,433		$	3,742	$	28,157	$	585	$	20,808	$	2,118	$	59,093
Initial allowance on loans purchased with credit deterioration		308		—			124		1,066		—		2,273		20		3,791
Provision for credit loss expense		374		(67	)		225		1,755		490		2,322		1,005		6,104
Loans charged off		14		—			87		25		408		529		1,568		2,631
Recoveries collected		—		—			216		805		38		576		683		2,318
Ending balance	$	2,918	$	1,366		$	4,220	$	31,758	$	705	$	25,450	$	2,258	$	68,675

Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans Individually Evaluated

The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of September 30, 2024 (in thousands):

	Collateral						Allowance
	Real Estate		Business Assets		Total		for Credit Losses
Agricultural real estate	$	533	$	—	$	533	$	—
1-4 family residential properties		—		—		—		—
Multifamily residential properties		970		—		970		—
Commercial real estate		7,767		—		7,767		141
Loans secured by real estate		9,270		—		9,270		141
Commercial and industrial loans		—		351		351		—
Total loans	$	9,270	$	351	$	9,621	$	141

Credit Risk Profile of Loan Portfolio on Amortized Cost Basis Based on Risk Rating Category

The following tables present the credit risk profile of the Company’s loan portfolio on amortized cost basis based on risk rating category and year of origination as of September 30, 2024 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2024		2023		2022		2021		2020		Prior		Loans		Total
September 30, 2024
Construction and land development loans
Pass	$	48,615	$	78,688	$	19,261	$	16,051	$	5,290	$	22,542	$	—	$	190,447
Special mention		—		—		—		—		—		390		—		390
Substandard		—		—		6		—		—		14		—		20
Total	$	48,615	$	78,688	$	19,267	$	16,051	$	5,290	$	22,946	$	—	$	190,857
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	15,266	$	18,873	$	157,635	$	54,503	$	51,161	$	80,611	$	—	$	378,049
Special mention		1,170		196		—		989		—		2,028		—		4,383
Substandard		—		141		966		—		—		1,081		—		2,188
Total	$	16,436	$	19,210	$	158,601	$	55,492	$	51,161	$	83,720	$	—	$	384,620
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	38,471	$	38,789	$	76,277	$	78,970	$	65,886	$	117,084	$	77,910	$	493,387
Special mention		—		—		207		77		—		562		88		934
Substandard		163		625		904		531		822		7,337		639		11,021
Total	$	38,634	$	39,414	$	77,388	$	79,578	$	66,708	$	124,983	$	78,637	$	505,342
Current period gross writeoffs	$	—	$	36	$	10	$	—	$	—	$	97	$	—	$	143
Commercial real estate loans
Pass	$	149,862	$	235,559	$	711,647	$	542,617	$	305,947	$	806,776	$	—	$	2,752,408
Special mention		363		—		4,174		2,051		291		7,367		—		14,246
Substandard		—		49		3,526		476		—		7,582		—		11,633
Total	$	150,225	$	235,608	$	719,347	$	545,144	$	306,238	$	821,725	$	—	$	2,778,287
Current period gross writeoffs	$	—	$	—	$	151	$	—	$	—	$	300	$	—	$	451
Agricultural loans
Pass	$	127,739	$	54,805	$	25,999	$	15,584	$	3,110	$	3,917	$	—	$	231,154
Special mention		327		302		—		—		—		—		—		629
Substandard		53		1,561		17		—		—		—		—		1,631
Total	$	128,119	$	56,668	$	26,016	$	15,584	$	3,110	$	3,917	$	—	$	233,414
Current period gross writeoffs	$	—	$	64	$	100	$	52	$	—	$	45	$	—	$	261
Commercial and industrial loans
Pass	$	171,046	$	262,373	$	282,671	$	197,515	$	124,654	$	401,109	$	—	$	1,439,368
Special mention		189		1,031		1,388		5,927		1,347		7,662		—		17,545
Substandard		65		765		247		185		18		656		—		1,936
Total	$	171,300	$	264,169	$	284,306	$	203,627	$	126,019	$	409,427	$	—	$	1,458,849
Current period gross writeoffs	$	—	$	47	$	207	$	378	$	10	$	1	$	—	$	643
Consumer loans
Pass	$	4,678	$	6,171	$	27,723	$	13,491	$	5,671	$	4,856	$	—	$	62,590
Special mention		—		—		24		—		—		—		—		24
Substandard		—		30		253		191		103		31		—		608
Total	$	4,678	$	6,201	$	28,000	$	13,682	$	5,774	$	4,887	$	—	$	63,222
Current period gross writeoffs	$	71	$	43	$	154	$	126	$	48	$	1,198	$	—	$	1,640
Total loans
Pass	$	555,677	$	695,258	$	1,301,213	$	918,731	$	561,719	$	1,436,895	$	77,910	$	5,547,403
Special mention		2,049		1,529		5,793		9,044		1,638		18,009		88		38,151
Substandard		281		3,171		5,919		1,383		943		16,701		639		29,037
Total	$	558,007	$	699,958	$	1,312,925	$	929,158	$	564,300	$	1,471,605	$	78,637	$	5,614,591
Current period gross writeoffs	$	71	$	190	$	622	$	556	$	58	$	1,641	$	—	$	3,138

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2023 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2023		2022		2021		2020		2019		Prior		Loans		Total
December 31, 2023
Construction and land development loans
Pass	$	68,086	$	74,065	$	27,392	$	5,188	$	10,795	$	19,115	$	—	$	204,641
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		436		—		436
Total	$	68,086	$	74,065	$	27,392	$	5,188	$	10,795	$	19,551	$	—	$	205,077
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	14	$	—	$	—	$	14
Agricultural real estate loans
Pass	$	19,231	$	164,812	$	57,815	$	53,249	$	19,419	$	71,189	$	—	$	385,715
Special mention		206		—		627		—		1,170		1,868		—		3,871
Substandard		—		—		371		—		—		1,175		—		1,546
Total	$	19,437	$	164,812	$	58,813	$	53,249	$	20,589	$	74,232	$	—	$	391,132
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	66,119	$	96,995	$	79,085	$	73,073	$	26,854	$	105,257	$	75,700	$	523,083
Special mention		—		967		3,184		—		—		3,804		10		7,965
Substandard		152		759		460		396		288		8,865		501		11,421
Total	$	66,271	$	98,721	$	82,729	$	73,469	$	27,142	$	117,926	$	76,211	$	542,469
Current period gross writeoffs	$	10	$	—	$	—	$	—	$	14	$	63	$	—	$	87
Commercial real estate loans
Pass	$	185,628	$	680,099	$	548,733	$	317,075	$	239,323	$	701,464	$	—	$	2,672,322
Special mention		3,666		2,706		1,317		2,159		1,563		7,778		—		19,189
Substandard		—		3,899		520		20		775		7,108		—		12,322
Total	$	189,294	$	686,704	$	550,570	$	319,254	$	241,661	$	716,350	$	—	$	2,703,833
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	25	$	—	$	—	$	25
Agricultural loans
Pass	$	147,993	$	27,895	$	10,044	$	2,549	$	1,883	$	5,854	$	—	$	196,218
Special mention		6		10		—		—		38		—		—		54
Substandard		—		—		—		—		—		—		—		—
Total	$	147,999	$	27,905	$	10,044	$	2,549	$	1,921	$	5,854	$	—	$	196,272
Current period gross writeoffs	$	—	$	276	$	—	$	—	$	—	$	132	$	—	$	408
Commercial and industrial loans
Pass	$	290,304	$	306,794	$	232,198	$	154,499	$	73,906	$	347,957	$	—	$	1,405,658
Special mention		1,047		1,857		9,982		562		597		28,900		—		42,945
Substandard		—		537		791		58		29		750		—		2,165
Total	$	291,351	$	309,188	$	242,971	$	155,119	$	74,532	$	377,607	$	—	$	1,450,768
Current period gross writeoffs	$	—	$	353	$	—	$	49	$	20	$	107	$	—	$	529
Consumer loans
Pass	$	9,547	$	40,225	$	21,264	$	10,387	$	4,475	$	4,035	$	—	$	89,933
Special mention		—		26		—		—		—		—		—		26
Substandard		86		405		325		139		59		41		—		1,055
Total	$	9,633	$	40,656	$	21,589	$	10,526	$	4,534	$	4,076	$	—	$	91,014
Current period gross writeoffs	$	22	$	177	$	89	$	10	$	7	$	1,075	$	—	$	1,380
Total loans
Pass	$	786,908	$	1,390,885	$	976,531	$	616,020	$	376,655	$	1,254,871	$	75,700	$	5,477,570
Special mention		4,925		5,566		15,110		2,721		3,368		42,350		10		74,050
Substandard		238		5,600		2,467		613		1,151		18,375		501		28,945
Total	$	792,071	$	1,402,051	$	994,108	$	619,354	$	381,174	$	1,315,596	$	76,211	$	5,580,565
Current period gross writeoffs	$	10	$	761	$	208	$	51	$	93	$	1,508	$	—	$	2,631

Loan Portfolio Aging Analysis

The following table presents the Company’s loan portfolio aging analysis at September 30, 2024 and December 31, 2023 (in thousands):

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
September 30, 2024
Construction and land development	$	—	$	6	$	450	$	456	$	190,401	$	190,857	$	—
Agricultural real estate		141		—		392		533		384,087		384,620		—
1-4 family residential properties		3,081		1,334		2,188		6,603		498,739		505,342		—
Multifamily residential properties		—		—		551		551		337,616		338,167		—
Commercial real estate		581		170		7,561		8,312		2,431,808		2,440,120		—
Loans secured by real estate		3,803		1,510		11,142		16,455		3,842,651		3,859,106		—
Agricultural loans		—		1,190		—		1,190		232,224		233,414		—
Commercial and industrial loans		2,290		784		804		3,878		1,279,753		1,283,631		—
Consumer loans		273		73		135		481		62,741		63,222		—
All other loans		—		—		—		—		175,218		175,218		—
Total loans	$	6,366	$	3,557	$	12,081	$	22,004	$	5,592,587	$	5,614,591	$	—
December 31, 2023
Construction and land development	$	—	$	585	$	450	$	1,035	$	204,042	$	205,077	$	—
Agricultural real estate		—		—		1		1		391,131		391,132		—
1-4 family residential properties		3,054		530		1,018		4,602		537,867		542,469		—
Multifamily residential properties		150		—		551		701		318,428		319,129		—
Commercial real estate		819		74		3,765		4,658		2,380,046		2,384,704		—
Loans secured by real estate		4,023		1,189		5,785		10,997		3,831,514		3,842,511		—
Agricultural loans		—		—		—		—		196,272		196,272		—
Commercial and industrial loans		673		73		1,531		2,277		1,263,882		1,266,159		—
Consumer loans		983		162		330		1,475		89,539		91,014		—
All other loans		—		—		—		—		184,609		184,609		—
Total loans	$	5,679	$	1,424	$	7,646	$	14,749	$	5,565,816	$	5,580,565	$	—

Amortized Cost Basis of Loans on Nonaccrual Status and Nonaccrual Loans Individually Evaluated

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded as of September 30, 2024 and December 31, 2023 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

	September 30, 2024				December 31, 2023
	Nonaccrual with no Allowance for		Total		Nonaccrual with no Allowance for		Total
	Credit Loss		Nonaccrual		Credit Loss		Nonaccrual
Construction and land development	$	6	$	6	$	—	$	—
Agricultural real estate		1,647		1,647		1,146		1,146
1-4 family residential properties		3,726		4,840		4,679		4,940
Commercial real estate		6,567		9,419		10,237		10,237
Loans secured by real estate		11,946		15,912		16,062		16,323
Commercial and industrial loans		979		979		1,931		1,931
Consumer loans		257		257		578		578
Total loans	$	13,182	$	17,148	$	18,571	$	18,832

Amortized Cost Basis of Loans Experiencing Difficulty and Modified

The following table shows the amortized cost of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to outstanding loans is also presented below.

									Total
			Payment		Term		Interest		Class of
	Principal		Delay		Extension		Rate		Financing
	Forgiveness		Investment		Modifications		Reduction		Receivable
September 30, 2024
Agricultural real estate	$	—	$	312	$	—	$	—		0.01	%
1-4 family residential properties		—		47		768		—		0.01	%
Commercial real estate		—		874		212		472		0.03	%
Loans secured by real estate		—		1,233		980		472		0.05	%
Commercial and industrial loans		—		151		119		—		—	%
Consumer loans		—		3		10		—		—	%
Total	$	—	$	1,387	$	1,109	$	472		0.05	%
September 30, 2023
Agricultural real estate	$	—	$	333	$	—	$	—		0.01	%
1-4 family residential properties		—		57		819		—		0.02	%
Commercial real estate		—		770		137		—		0.02	%
Loans secured by real estate		—		1,160		956		—		0.04	%
Commercial and industrial loans		—		218		279		—		0.01	%
Consumer loans		—		7		41		—		—	%
Total	$	—	$	1,385	$	1,276	$	—		0.05	%

Performance of loans modified

The following table shows the performance of such loans that have been modified in the last twelve months ended September 30, 2024 and 2023.

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
September 30, 2024
1-4 family residential properties	$	—	$	—	$	—	$	—
Loans secured by real estate		—		—		—		—
Commercial and industrial loans		—		—		—		—
Consumer loans		—		96		116		212
Total loans	$	—	$	96	$	116	$	212
September 30, 2023
1-4 family residential properties	$	28	$	—	$	—	$	28
Loans secured by real estate		28		—		—		28
Commercial and industrial loans		11		—		—		11
Consumer loans		—		—		16		16
Total loans	$	39	$	—	$	16	$	55

Financial Effect of Loan Modifications

The following table shows the financial effect of loan modifications during the current quarter to borrowers experiencing financial difficulty for the three months ended September 30, 2024 and 2023.

	Weighted Average			Weighted Average
	Interest Rate			Term Extension
	Reduction			(in months)
September 30, 2024
Commercial and industrial loans		—	%		7.00
Consumer loans		—	%		—
		—	%		7.00
September 30, 2023
Commercial and industrial loans		4.75	%		5.13
Consumer loans		—	%		3.00
		4.75	%		4.93

Summary of Purchased Credit Deteriorated (PCD) Loans

The Company has acquired loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans at acquisition date is as follows (in thousands):

	2023
	Blackhawk Acquisition
Purchase price of purchase credit deteriorated loans at acquisition	$	115,250
Allowance for credit losses at acquisition		(3,791	)
Non-credit discount/(premium) at acquisition		(5,476	)
Fair value of purchased credit deteriorated loans at acquisition	$	105,983

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Intangible Assets and Goodwill

The following table presents gross carrying value and accumulated amortization by major intangible asset class as of September 30, 2024 and December 31, 2023 (in thousands):

	September 30, 2024				December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization	$	207,151	$	3,760	$	200,221	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		79,945		42,411		79,945		34,966
Other intangibles		30,857		12,478		26,552		10,620
	$	320,968	$	61,664	$	309,733	$	52,361

Intangible Assets Mortgage Servicing Rights

The Company has mortgage servicing rights acquired in previous acquisitions. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of September 30, 2024, September 30, 2023 and December 31, 2023 (in thousands):

	September 30, 2024			September 30, 2023			December 31, 2023
Beginning balance	$	6,859		$	331		$	331
Mortgage servicing rights acquired during period		—			7,062			7,070
Adjustment to valuation reserve		(77	)		0			(8	)
Mortgage servicing rights amortized		(939	)		(161	)		(524	)
Interest only strip		(8	)		(8	)		(10	)
Ending balance	$	5,835		$	7,224		$	6,859

Schedule of Intangible Assets Amortization Expense

Total amortization expense for three and nine months ended September 30, 2024 and 2023 was as follows (in thousands):

	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Core deposit intangibles	$	2,416	$	1,857	$	7,445	$	3,916
Customer list intangibles		702		578		1,858		1,490
Mortgage servicing rights		287		133		939		161
	$	3,405	$	2,568	$	10,242	$	5,567

Schedule of Expected Amortization Expense

Aggregate amortization expense for the current year and estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):

Aggregate amortization expense:
For period 01/01/24 - 09/30/24	$	10,242
Estimated amortization expense:
For period 10/01/24 - 12/31/24		3,436
For year ended 12/31/25		12,310
For year ended 12/31/26		10,594
For year ended 12/31/27		9,330
For year ended 12/31/28		8,116

Purdum, Gray, Ingledue, Beck, Inc.

Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded

The followingprovides a reconciliation of the purchase price paid for Purdum, Gray, Ingledue, Beck, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	10,145
Less purchase accounting adjustments:
Insurance Company intangible	$	5,770
Other liabilities		(1,576	)
					4,194
				$	5,951

Mid Rivers

Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded

The following provides a reconciliation of the purchase price paid for Mid Rivers Insurance Group, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	10,059
Less purchase accounting adjustments:
Insurance Company intangible	$	4,305
Other liabilities		(1,176	)
					3,129
				$	6,930

Blackhawk Bancorp, Inc

Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded

The following table provides a reconciliation of the purchase price paid for the acquisition of Blackhawk and the amount of goodwill recorded (in thousands):

Unallocated purchase price				$	26,955
Less purchase accounting adjustments:
Fair value of securities	$	(25,521	)
Fair value of loans, net		(43,477	)
Fair value of premises and equipment		(3,856	)
Fair value of time deposits		2,311
Fair value of subordinated and junior subordinated debentures		3,707
Increase in core deposit intangible		33,731
Increase in mortgage servicing rights		3,344
Other assets		6,619
					(23,142	)
				$	50,097

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Repurchase Agreements and Other Borrowings (Tables)

9 Months Ended

Sep. 30, 2024

Repurchase Agreements And Other Borrowings [Abstract]

Schedule of Securities Financing Transactions

Collateral pledged by class for repurchase agreements are as follows (in thousands):

	September 30, 2024		December 31, 2023
US Treasury securities and obligations of U.S. government corporations and agencies	$	63,127	$	46,544
Mortgage-backed securities: GSE: residential		141,216		167,177
Total	$	204,343	$	213,721

Federal Home Loan Bank, Advances

Gross FHLB borrowings, were $238.6 million and $263.6 million at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024 the advances were as follows:

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	2.0	4.59%	November 8, 2024
	10,000,000	5.0	1.45%	December 31, 2024
	5,000,000	5.0	0.91%	March 10, 2025
	3,605,826	10.0	2.64%	December 23, 2025
	25,000,000	3.0	4.40%	June 15, 2026
	25,000,000	3.0	4.37%	May 10, 2027
	25,000,000	3.0	4.32%	May 17, 2027
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.93%	June 27, 2029
	5,000,000	10.0	1.15%	October 3, 2029
	5,000,000	10.0	1.12%	October 3, 2029
	10,000,000	10.0	1.39%	December 31, 2029

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Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of September 30, 2024 and December 31, 2023 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	194,169	$	—	$	194,169	$	—
Obligations of states and political subdivisions		280,444		—		280,444		—
Mortgage-backed securities		576,849		—		576,849		—
Other securities		64,090		—		58,123		5,967
Total available-for-sale securities		1,115,552		—		1,109,585		5,967
Equity securities		4,424		4,424		—		—
Loans held for sale		8,085		—		8,085		—
Derivative assets: interest rate swaps		2,339		—		2,339		—
Total assets	$	1,130,400	$	4,424	$	1,120,009	$	5,967
Derivative liabilities: interest rate swaps	$	1,755	$	—	$	1,755	$	—
December 31, 2023
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	211,656	$	—	$	211,656	$	—
Obligations of states and political subdivisions		288,616		—		288,616		—
Mortgage-backed securities		602,300		—		602,300		—
Other securities		69,000		—		62,837		6,163
Total available-for-sale securities		1,171,572		—		1,165,409		6,163
Equity securities		4,074		4,074		—		—
Loans held for sale		4,980		—		4,980		—
Derivative assets: interest rate swaps		3,166		—		3,166		—
Total assets	$	1,183,792	$	4,074	$	1,173,555	$	6,163
Derivative liabilities: interest swaps	$	2,217	$	—	$	2,217	$	—

Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs

The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023 is summarized as follows (in thousands):

	Three months ended September 30, 2024						Nine months ended September 30, 2024
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,966	$	5,966	$	—	$	6,163		$	6,163
Transfers into Level 3		—		1		1		—		3			3
Maturities		—		—		—		—		(199	)		(199	)
Ending balance	$	—	$	5,967	$	5,967	$	—	$	5,967		$	5,967
	Three months ended September 30, 2023						Nine months ended September 30, 2023
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,760	$	5,760	$	—	$	10,000		$	10,000
Transfers into Level 3		—		—		—		—		10			10
Transfers out of Level 3		—		—		—		—		(4,250	)		(4,250	)
Ending balance	$	—	$	5,760	$	5,760	$	—	$	5,760		$	5,760

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2024 and December 31, 2023 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2024
Collateral dependent loans	$	579	$	—	$	—	$	579
Foreclosed assets held for sale		47		—		—		47
December 31, 2023
Collateral dependent loans	$	1,028	$	—	$	—	$	1,028
Foreclosed assets held for sale		24		—		—		24

Significant Unobservable Inputs Used in Valuation of Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at September 30, 2024 and December 31, 2023.

September 30, 2024	Fair Value	Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$579	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	20%
Foreclosed assets held for sale	47	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	1,028	Third party valuations	Discount to reflect realizable value	0% - 40%	20%
Foreclosed assets held for sale		24	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

Summary of Estimated Fair Values of Company Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments at September 30, 2024 and December 31, 2023 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2024
Financial assets
Cash and due from banks	$	164,165	$	164,165	$	164,165	$	—	$	—
Federal funds sold		26		26		26		—		—
Certificates of deposit investments		3,500		3,500		—		3,500		—
Available-for-sale securities		1,115,552		1,115,552		—		1,109,585		5,967
Held-to-maturity securities		2,298		2,298		2,298		—		—
Equity securities		4,424		4,424		4,424		—		—
Loans held for sale		8,085		8,085		—		8,085		—
Loans net of allowance for credit losses		5,537,732		5,228,689		—		—		5,228,689
Interest receivable		38,387		38,387		—		38,387		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,555		9,555		—		9,555		—
Financial liabilities
Deposits	$	6,088,834	$	6,007,297	$	—	$	5,053,589	$	953,708
Securities sold under agreements to repurchase		204,343		204,343		—		204,343		—
Interest payable		6,491		6,491		—		6,491		—
Federal Home Loan Bank borrowings		238,712		238,911		—		238,911		—
Subordinated debt, net		87,373		85,637		—		104,836		—
Junior subordinated debentures, net		24,224		21,076		—		21,076		—
December 31, 2023
Financial assets
Cash and due from banks	$	134,082	$	134,082	$	134,082	$	—	$	—
Federal funds sold		8,982		8,982		8,982		—		—
Certificates of deposit investments		1,470		1,470		—		1,470		—
Available-for-sale securities		1,171,572		1,171,572		—		1,165,409		6,163
Held-to-maturity securities		2,286		2,286		2,286		—		—
Equity securities		4,074		4,074		4,074		—		—
Loans held for sale		4,980		4,980		—		4,980		—
Loans net of allowance for credit losses		5,506,910		5,235,525		—		—		5,235,525
Interest receivable		35,082		35,082		—		35,082		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,758		9,758		—		9,758		—
Financial liabilities
Deposits	$	6,123,659	$	6,042,277	$	—	$	5,076,066	$	966,211
Securities sold under agreements to repurchase		213,721		213,714		—		213,714		—
Interest payable		5,437		5,437		—		5,437		—
Federal Home Loan Bank borrowings		263,787		261,206		—		261,206		—
Subordinated debentures		106,755		102,018		—		102,018		—
Junior subordinated debentures		24,058		21,524		—		21,524		—

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2024

Business Acquisition [Line Items]

Summary of Purchased Credit Deteriorated (PCD) Loans

The Company has acquired loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans at acquisition date is as follows (in thousands):

	2023
	Blackhawk Acquisition
Purchase price of purchase credit deteriorated loans at acquisition	$	115,250
Allowance for credit losses at acquisition		(3,791	)
Non-credit discount/(premium) at acquisition		(5,476	)
Fair value of purchased credit deteriorated loans at acquisition	$	105,983

Blackhawk Bancorp, Inc

Business Acquisition [Line Items]

Summary of Consideration Transferred

The following table presents a summary of consideration transferred:

(In thousands, except shares)
Common stock issued (3,290,222 shares)	$	93,508
Cash consideration		2
Purchase price	$	93,510

Summary of Purchased Credit Deteriorated (PCD) Loans

The following table provides a summary of PCD loans purchased as part of the Blackhawk acquisition as of the acquisition date:

(In thousands)
Unpaid principal balance	$	115,250
PCD allowance for credit losses at acquisition		(3,791	)
Non-credit discount on acquired loans		(5,476	)
Fair value of PCD loans	$	105,983

Summary of Fair Value of Assets Acquired and Liabilities Assumed

A preliminary summary of the fair value of assets received and liabilities assumed are as follows:

(In thousands)
Assets
Cash and due from banks	$	55,600
Loans held for sale		3,222
Loans, net		722,866
Investments-available for sale		377,969
Short-term investments		869
FHLB stock		1,737
Premises and equipment		12,366
Accrued interest receivable		4,029
Prepaid expenses		1,182
Other assets		20,742
Core deposit intangible		34,590
Income tax receivable		2,077
Deferred tax asset		22,152
Mortgage servicing rights		7,031
Total assets acquired	$	1,266,432
Liabilities
Deposits	$	1,194,972
Subordinated and Junior Subordinated debt		16,448
Accrued interest payable		1,091
Accrued and other liabilities		10,508
Total liabilities assumed		1,223,019
Net assets acquired	$	43,413
Total consideration	$	93,510
Goodwill	$	50,097

Unaudited Pro Forma Condensed Combined Financial Information

The following unaudited pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the Blackhawk Merger taken place at the beginning of the period (dollars in thousands, except per share data):

	Three months ended		Nine months ended
	September 30,		September 30,
	2023		2023
Net interest income	$	57,245	$	171,635
Provision for credit losses		6,246		6,768
Non-interest income		25,205		73,892
Non-interest expense		60,741		166,430
Income before taxes		15,463		72,329
Income tax expense		3,830		17,069
Net income	$	11,633	$	55,260
Earnings per share
Basic	$	0.52	$	2.62
Diluted	$	0.52	$	2.61
Basic weighted average shares o/s		22,220,438		21,086,802
Diluted weighted average shares o/s		22,319,334		21,176,946

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Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Summary of Supplemental Balance Sheet Information

The following table contains supplemental balance sheet information related to leases (dollars in thousands):

	September 30, 2024			September 30, 2023			December 31, 2023
Operating lease right-of-use assets	$	14,560		$	14,192		$	14,306
Operating lease liabilities		14,873			14,503			14,615
Weighted-average remaining lease term (in years)		4.9			5.0		4.9
Weighted-average discount rate		3.18	%		2.75	%		3.21	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities are as follows (in thousands):

Year ending December 31,
2024	$	1,124
2025		3,097
2026		2,916
2027		2,687
2028		2,076
Thereafter		4,851
Total lease payments		16,751
Less imputed interest		(1,878	)
Total lease liability	$	14,873

Summary of Components of Lease Expense

The components of lease expense for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):

	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Operating lease cost	$	885		$	870		$	2,553		$	2,448
Short-term lease cost		23			24			89			51
Variable lease cost		216			163			572			577
Total lease cost		1,124			1,057			3,214			3,076
Income from subleases		(110	)		(94	)		(317	)		(281	)
Net lease cost	$	1,014		$	963		$	2,897		$	2,795

Summary of Operating Lease Cash Flows

Cash paid for amounts included in the measurement of lease liabilities was (in thousands):

	September 30, 2024		September 30, 2023
Operating cash flows from operating leases	$	2,502	$	2,414

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2024

Derivative [Line Items]

Summary of Derivative Instruments, Gain (Loss)

The effects of the fair value hedges on the Company's income statement during the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):

		Three months ended					Nine months ended
		September 30,					September 30,
Derivative	Location of Gain (Loss) on Derivatives	2024			2023		2024			2023
Interest rate swap agreements	Interest income on loans	$	(539	)	$	226	$	(364	)	$	264

		Three months ended					Nine months ended
		September 30,					September 30,
Derivative	Location of Gain (Loss) on Hedged Items	2024		2023			2024		2023
Interest rate swap agreements	Interest income on loans	$	539	$	(226	)	$	364	$	(264	)

Summary of Cumulative Basis Adjustment of Fair Value Hedges

As of September 30, 2024, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustment for fair value hedges (in thousands):

Line Item in the Balance Sheet in Which the Hedge Item is Included	Carrying Amount of the Hedged Asset		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
Loans	$	12,078	$	(585	)

Not Designated as Hedging Instrument

Derivative [Line Items]

Summary of Fair Value Derivative Instruments

The following amounts represent the notional amounts and gross fair value of derivative contracts not designated as hedging instruments outstanding during the nine months ended September 30, 2024 (dollars in thousands):

September 30, 2024	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
Interest rate swap agreements	Other assets	4.2	$	29,389	$	2,339
Interest rate swap agreements	Other liabilities	4.2		29,389		(2,339	)

Fair Value Hedging | Designated As Hedging Instrument

Derivative [Line Items]

Summary of Fair Value Derivative Instruments

The following table provides the outstanding notional balances and fair values of outstanding derivatives designated as hedging instruments as of September 30, 2024 and December 31, 2023 (in thousands):

	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
September 30, 2024
Fair value hedges:
Interest rate swap agreements	Other liabilities	4.6	$	12,662	$	(1,755	)
December 31, 2023
Fair value hedges:
Interest rate swap agreements	Other liabilities	5.3	$	12,976	$	(2,217	)

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Basis of Accounting and Consolidation - Additional Information (Details) - USD ($)		3 Months Ended		9 Months Ended
	Mar. 20, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Summary Of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share)		$ 4		$ 4		$ 4
Stock plans, term				10 years
Maximum number of shares to be issued in stock incentive plan (in shares)		399,983		399,983
Employee discount for employee stock purchase plan				15.00%
Employee stock purchase plan, number of shares authorized		600,000		600,000
Stock issued during period, shares, employee stock purchase plans		9,384	11,624	25,319	28,762
Captive maximum gross premiums				$ 2,800,000
Employee Stock Option
Summary Of Significant Accounting Policies [Line Items]
Common stock awarded in SI plan (in shares)				0
Restricted Stock
Summary Of Significant Accounting Policies [Line Items]
Common stock awarded in SI plan (in shares)				53,766	60,550
Restricted Stock Units (RSUs)
Summary Of Significant Accounting Policies [Line Items]
Common stock awarded in SI plan (in shares)				39,150	37,900
Blackhawk Bancorp, Inc
Summary Of Significant Accounting Policies [Line Items]
Percentage of issued and outstanding shares acquired	100.00%
Common stock, par value (in dollars per share)	$ 0.01
Conversion of common stock	1.15
Share Price	$ 4
Consideration payable in cash	$ 1,928
Consideration payable in shares	3,290,222
Common stock consideration value	$ 93,508,000

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Basis of Accounting and Consolidation - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Balance	$ 858,497	$ 793,204	$ 813,645	$ 737,948	$ 660,687	$ 633,155
Accumulated Other Comprehensive Income (Loss)
Net unrealized losses on securities available-for-sale	(159,109)	(192,149)
Tax benefit	42,417	55,722
Balance	$ (116,692)	$ (136,427)	$ (146,998)	$ (178,903)	$ (151,566)	$ (151,507)

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Basis of Accounting and Consolidation - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Realized gain (loss) on available-for-sale securities	$ (277)	$ 3,389	$ (433)	$ 3,337
Tax effect	(5,885)	(5,372)	(19,293)	(15,888)
Total reclassifications out of accumulated other comprehensive income (loss)	(200)	2,406	(314)	2,369
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Realized gain (loss) on available-for-sale securities	(277)	3,389	(433)	3,337
Tax effect	$ 77	$ (983)	$ 119	$ (968)

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Earnings Per Share - Components of Basic and Diluted Net Income Per Common Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic Net Income per Common Share Available to Common Stockholders:
Net Income (Loss)	$ 19,482,000	$ 15,117,000	$ 59,730,000	$ 50,864,000
Weighted average common shares outstanding	23,905,099	22,220,438	23,891,430	21,086,802
Basic earnings per common share	$ 0.81	$ 0.68	$ 2.5	$ 2.41
Diluted Net Income per Common Share Available to Common Stockholders:
Net income applicable to diluted earnings per share	$ 19,482,000	$ 15,117,000	$ 59,730,000	$ 50,864,000
Weighted average common shares outstanding	23,905,099	22,220,438	23,891,430	21,086,802
Dilutive potential common shares: restricted stock awarded	101,548	98,896	97,048	90,144
Diluted weighted average common shares outstanding	24,006,647	22,319,334	23,988,478	21,176,946
Diluted earnings per common share	$ 0.81	$ 0.68	$ 2.49	$ 2.4

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Earnings Per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Number of anti-dilutive shares excluded when computing diluted earnings per share	0	0	0	0

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Investment Securities - Available for Sale and Held for Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available-for-sale: [Abstract]
Amortized Cost	$ 1,274,661	$ 1,363,721
Gross Unrealized Gains	1,820	1,310
Gross Unrealized (Losses)	(160,929)	(193,459)
Fair Value	1,115,552	1,171,572
Held-to-maturity: [Abstract]
Held-to-maturity	2,298	2,286
Gross Unrealized Gains	0	0
Unrealized (Losses)	0	0
Fair Value	2,298	2,286
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale: [Abstract]
Amortized Cost	212,259	237,875
Gross Unrealized Gains	1	0
Gross Unrealized (Losses)	(18,091)	(26,219)
Fair Value	194,169	211,656
Obligations of States and Political Subdivisions
Available-for-sale: [Abstract]
Amortized Cost	326,751	337,835
Gross Unrealized Gains	255	152
Gross Unrealized (Losses)	(46,562)	(49,371)
Fair Value	280,444	288,616
Mortgage-backed Securities: GSE Residential
Available-for-sale: [Abstract]
Amortized Cost	668,554	714,216
Gross Unrealized Gains	1,564	1,158
Gross Unrealized (Losses)	(93,269)	(113,074)
Fair Value	576,849	602,300
Other Securities
Available-for-sale: [Abstract]
Amortized Cost	67,097	73,795
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	(3,007)	(4,795)
Fair Value	64,090	69,000
Other Investments
Held-to-maturity: [Abstract]
Held-to-maturity	2,298	2,286
Gross Unrealized Gains	0	0
Unrealized (Losses)	0	0
Fair Value	$ 2,298	$ 2,286

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Investment Securities - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) Position Security	Dec. 31, 2023 USD ($) Position Security
Schedule Of Available For Sale Securities [Line Items]
Equity securities, at fair value	$ 4,424	$ 4,074
Tax rate used to calculate tax-equivalent yields (in hundredths)	21.00%
Percentage investment book value exceeds stockholders' equity (in hundredths)	10.00%
Debt securities, available-for-sale, restricted	$ 834,100	831,000
Available-for-sale, 12 months or longer, Fair Value	1,050,204	1,075,835
12 months or longer, unrealized losses	$ 160,096	$ 192,616
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Schedule Of Available For Sale Securities [Line Items]
Number of securities in unrealized loss positions | Security	28	36
Available-for-sale, 12 months or longer, Fair Value	$ 193,524	$ 210,069
12 months or longer, unrealized losses	$ 18,091	$ 26,215
Held-to-maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | Position	0	0
Obligations of States and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Number of securities in unrealized loss positions | Security	247	237
Available-for-sale, 12 months or longer, Fair Value	$ 251,107	$ 241,630
12 months or longer, unrealized losses	$ 45,729	$ 49,038
Mortgage-backed Securities: GSE Residential
Schedule Of Available For Sale Securities [Line Items]
Number of securities in unrealized loss positions | Security	242	263
Available-for-sale, 12 months or longer, Fair Value	$ 547,233	$ 566,197
12 months or longer, unrealized losses	$ 93,269	$ 113,007
Other Securities
Schedule Of Available For Sale Securities [Line Items]
Number of securities in unrealized loss positions | Security	40	43
Available-for-sale, 12 months or longer, Fair Value	$ 58,340	$ 57,939
12 months or longer, unrealized losses	$ 3,007	$ 4,356

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Investment Securities - Realized Gains and Losses From Sale of Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Realized Investment Gains (Losses) [Abstract]
Gross gains	$ 11	$ 3,823	$ 46	$ 3,829
Gross losses	$ (288)	$ (434)	$ (479)	$ (492)

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Investment Securities - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Available-for-sale investments, One year or less	$ 255,755
Available-for-sale investments, After 1 through 5 years	148,988
Available-for-sale investments, After 5 through 10 years	174,479
Available-for-sale investments, After ten years	536,330
Available-for-sale investments, Fair Value	$ 1,115,552	$ 1,171,572
Available-for-sale, Weighted average yield, One year or less (in hundredths)	2.04%
Available-for-sale , Weighted average yield,After 1 through 5 years (in hundredths)	2.38%
Available-for-sale, Weighted average yield,After 5 through 10 years (in hundredths)	2.26%
Available-for-sale , Weighted average yield,After ten years (in hundredths)	1.81%
Available-for-sale , Weighted average yield,Total (in hundredths)	2.01%
Available-for-sale, Full Tax-equivalent yield, One year or less (in hundredths)	2.11%
Available-for-sale, Full Tax-equivalent yield,After 1 through 5 years (in hundredths)	2.88%
Available-for-sale, Full Tax-equivalent yield, After 5 through 10 years (in hundredths)	2.70%
Available-for-sale, Full Tax-equivalent yield,After ten years (in hundredths)	1.83%
Available-for-sale, Full Tax-equivalent yield,Total (in hundredths)	2.17%
Held-to-maturity, Maturity [Abstract]
Held-to-maturity, One Year or less	$ 0
Held-to-maturity, After1 through 5 years	0
Held-to-maturity, After 5 through 10 years	0
Held-to-maturity, After ten years	2,298
Held-to-maturity	$ 2,298	2,286
Held To Maturity Weighted average yield, One year or less	0.00%
Held To Maturity Weighted average yield, After 1 through 5 years	0.00%
Held To Maturity Weighted average yield After 5 through 10 years	0.00%
Held To Maturity Weighted average yield After ten years	0.00%
Held To Maturity Weighted average yield ,Total	0.00%
Held To Maturity, Full tax-equivalent yield , One year or less	0.00%
Held To Maturity, Full tax-equivalent yield , After 1 through 5 years	0.00%
Held To Maturity, Full tax-equivalent yield , After 5 through 10 years	0.00%
Held To Maturity, Full tax-equivalent yield , After ten years	0.00%
Held To Maturity, Full tax-equivalent yield , Total	0.00%
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Available-for-sale investments, One year or less	$ 181,606
Available-for-sale investments, After 1 through 5 years	12,563
Available-for-sale investments, After 5 through 10 years	0
Available-for-sale investments, After ten years	0
Available-for-sale investments, Fair Value	194,169	211,656
Obligations of States and Political Subdivisions
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Available-for-sale investments, One year or less	24,154
Available-for-sale investments, After 1 through 5 years	115,365
Available-for-sale investments, After 5 through 10 years	139,325
Available-for-sale investments, After ten years	1,600
Available-for-sale investments, Fair Value	280,444	288,616
Mortgage-backed Securities: GSE Residential
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Available-for-sale investments, One year or less	3,068
Available-for-sale investments, After 1 through 5 years	4,677
Available-for-sale investments, After 5 through 10 years	34,374
Available-for-sale investments, After ten years	534,730
Available-for-sale investments, Fair Value	576,849	602,300
Other Securities
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Available-for-sale investments, One year or less	46,927
Available-for-sale investments, After 1 through 5 years	16,383
Available-for-sale investments, After 5 through 10 years	780
Available-for-sale investments, After ten years	0
Available-for-sale investments, Fair Value	64,090	69,000
Other Investments
Held-to-maturity, Maturity [Abstract]
Held-to-maturity, One Year or less	0
Held-to-maturity, After1 through 5 years	0
Held-to-maturity, After 5 through 10 years	0
Held-to-maturity, After ten years	2,298
Held-to-maturity	$ 2,298	$ 2,286

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Investment Securities - Fair Value of Investments with Sustained Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Less than 12 months, Fair Value	$ 14,102	$ 34,698
Available-for-sale, Less than 12 months, Unrealized Losses	(833)	(843)
Available-for-sale, 12 months or longer, Fair Value	1,050,204	1,075,835
Available-for-sale, 12 months or longer, Unrealized losses	(160,096)	(192,616)
Available-for-sale, Total Fair Value	1,064,306	1,110,533
Available-for-sale, Total Unrealized Losses	(160,929)	(193,459)
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Less than 12 months, Fair Value	300	1,288
Available-for-sale, Less than 12 months, Unrealized Losses	0	(4)
Available-for-sale, 12 months or longer, Fair Value	193,524	210,069
Available-for-sale, 12 months or longer, Unrealized losses	(18,091)	(26,215)
Available-for-sale, Total Fair Value	193,824	211,357
Available-for-sale, Total Unrealized Losses	(18,091)	(26,219)
Obligations of States and Political Subdivisions
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Less than 12 months, Fair Value	13,802	22,281
Available-for-sale, Less than 12 months, Unrealized Losses	(833)	(333)
Available-for-sale, 12 months or longer, Fair Value	251,107	241,630
Available-for-sale, 12 months or longer, Unrealized losses	(45,729)	(49,038)
Available-for-sale, Total Fair Value	264,909	263,911
Available-for-sale, Total Unrealized Losses	(46,562)	(49,371)
Mortgage-backed Securities: GSE Residential
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Less than 12 months, Fair Value	0	5,818
Available-for-sale, Less than 12 months, Unrealized Losses	0	(67)
Available-for-sale, 12 months or longer, Fair Value	547,233	566,197
Available-for-sale, 12 months or longer, Unrealized losses	(93,269)	(113,007)
Available-for-sale, Total Fair Value	547,233	572,015
Available-for-sale, Total Unrealized Losses	(93,269)	(113,074)
Other Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Less than 12 months, Fair Value	0	5,311
Available-for-sale, Less than 12 months, Unrealized Losses	0	(439)
Available-for-sale, 12 months or longer, Fair Value	58,340	57,939
Available-for-sale, 12 months or longer, Unrealized losses	(3,007)	(4,356)
Available-for-sale, Total Fair Value	58,340	63,250
Available-for-sale, Total Unrealized Losses	$ (3,007)	$ (4,795)

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Loans and Allowance for Credit Losses - Summary of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 5,655,759		$ 5,633,562
Loans held for sale	8,085		4,980
Loans and leases receivable gross excluding loans held for sale	5,647,674		5,628,582
Net deferred loan fees, premiums and discounts	41,168		52,997
Allowance for credit losses	68,774	$ 68,312	68,675	$ 68,241	$ 58,719	$ 59,093
Net loans	5,537,732		5,506,910
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	3,894,661		3,886,972
Construction and Land Development | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	192,327		207,033
Allowance for credit losses	2,674	2,646	2,918	2,735	2,208	2,250
Agricultural | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	385,324		392,265
Allowance for credit losses	1,342	1,372	1,366	1,397	1,370	1,433
Commercial | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	2,465,488		2,416,294
Allowance for credit losses	32,825	32,918	31,758	31,823	28,014	28,157
Agricultural Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	233,074		196,202
Allowance for credit losses	860	885	705	640	524	585
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,288,940		1,273,637
Allowance for credit losses	25,569	24,931	25,450	25,595	21,544	20,808
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	63,867		92,142
Allowance for credit losses	1,823	1,980	2,258	1,981	1,812	2,118
All Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	175,217		184,609
1-4 Family | Residential Properties | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	511,404		549,843
Allowance for credit losses	3,681	$ 3,580	4,220	$ 4,070	$ 3,247	$ 3,742
Multifamily | Residential Properties | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 340,118		$ 321,537

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Loans and Allowance for Credit Losses - Additional Information (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2023 Loan_modified	Sep. 30, 2024 USD ($) Loan_modified Alternative	Sep. 30, 2023 USD ($) Loan_modified	Dec. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans		$ 32,500,000		$ 29,900,000
Gross loans		5,606,506,000		5,575,585,000
Minimum value of loans individually measured for impairment		$ 250,000,000
Number of alternatives for measuring impaired loans receivable | Alternative		3
Interest lost on nonaccrual loans		$ 516,000	$ 173,000
Troubled debt restructurings balance | Loan_modified	0	0	0
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt coverage ratio		1.20x
Commercial Real Estate | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan-to-value ratio (in hundredths)		65.00%
Amortization period of loans		twenty
Commercial Real Estate | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan-to-value ratio (in hundredths)		80.00%
Amortization period of loans		twenty five years
1-4 Family Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period when loans charged-down		180 days
Motels and Hotels Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans		$ 226,700,000
Non-residential Buildings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans		1,100,000,000
Residential Buildings and Dwellings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans		$ 559,700,000
Unsecured Open-end Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period when loans charged-down		180 days
Other Secured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period when loans charged-down		120 days
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans		$ 618,400,000		588,500,000
Increase in accounts and notes receivable		$ 29,900,000
Maximum loan-to-value ratio (in hundredths)		65.00%
Amortization period of loans		twenty-five years
Loans receivable, time period		1 year
Agricultural | Corn and Other Grain Farming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans		$ 508,200,000		$ 472,500,000
Increase in accounts and notes receivable		$ 35,800,000
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan-to-value ratio (in hundredths)		80.00%
Amortization period of loans		seven years
Loans receivable, time period		1 year
Residential Properties | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan-to-value ratio (in hundredths)		80.00%
Amortization period of loans		twenty-five years
Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Internal concentration threshold percentage		90.00%

XML

Loans and Allowance for Credit Losses - Summary of Gross Commercial Real Estate Loans By Property Type (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 5,655,759	$ 5,633,562
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	3,894,661	3,886,972
Commercial | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	2,465,488	$ 2,416,294
Commercial | Real Estate Loan | Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	793,289
Commercial | Real Estate Loan | Shopping Centers and Malls | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	248,182
Commercial | Real Estate Loan | Industrial and Warehouse | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	225,889
Commercial | Real Estate Loan | Hotels and Motels | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	212,145
Commercial | Real Estate Loan | Skilled Nursing Facility | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	163,030
Commercial | Real Estate Loan | Office | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	149,736
Commercial | Real Estate Loan | Retail | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	116,988
Commercial | Real Estate Loan | Assisted Living Facility | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	115,860
Commercial | Real Estate Loan | Medical Office | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	96,539
Commercial | Real Estate Loan | Other Property Types | Non Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 343,830

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Loans and Allowance for Credit Losses - Allowance for Credit Losses Based on Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	$ 68,312	$ 58,719	$ 68,675	$ 59,093	$ 59,093
Initial allowance on loans purchased with credit deterioration		3,791		3,791	3,791
Provision for credit loss expense	1,266	5,911	1,992	5,552	6,104
Loans charged off	1,334	521	3,138	1,581	2,631
Recoveries collected	530	341	1,245	1,386	2,318
Allowance for credit losses, Ending Balance	68,774	68,241	68,774	68,241	68,675
Construction and Land Development | Real Estate Loan
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	2,646	2,208	2,918	2,250	2,250
Initial allowance on loans purchased with credit deterioration		308		308	308
Provision for credit loss expense	23	219	(249)	191	374
Loans charged off	0	0	0	14	14
Recoveries collected	5	0	5	0	0
Allowance for credit losses, Ending Balance	2,674	2,735	2,674	2,735	2,918
Agricultural | Real Estate Loan
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	1,372	1,370	1,366	1,433	1,433
Initial allowance on loans purchased with credit deterioration		0		0	0
Provision for credit loss expense	(30)	27	(24)	(36)	(67)
Loans charged off	0	0	0	0	0
Recoveries collected	0	0	0	0	0
Allowance for credit losses, Ending Balance	1,342	1,397	1,342	1,397	1,366
Residential Properties | Real Estate Loan | 1-4 Family
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	3,580	3,247	4,220	3,742	3,742
Initial allowance on loans purchased with credit deterioration		124		124	124
Provision for credit loss expense	55	629	(633)	88	225
Loans charged off	42	21	143	77	87
Recoveries collected	88	91	237	193	216
Allowance for credit losses, Ending Balance	3,681	4,070	3,681	4,070	4,220
Commercial | Real Estate Loan
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	32,918	28,014	31,758	28,157	28,157
Initial allowance on loans purchased with credit deterioration		1,066		1,066	1,066
Provision for credit loss expense	349	2,727	1,343	2,278	1,755
Loans charged off	451	0	451	25	25
Recoveries collected	9	16	175	347	805
Allowance for credit losses, Ending Balance	32,825	31,823	32,825	31,823	31,758
Agricultural Loans
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	885	524	705	585	585
Initial allowance on loans purchased with credit deterioration		0		0	0
Provision for credit loss expense	(50)	245	391	450	490
Loans charged off	0	132	261	408	408
Recoveries collected	25	3	25	13	38
Allowance for credit losses, Ending Balance	860	640	860	640	705
Commercial and Industrial Loans
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	24,931	21,544	25,450	20,808	20,808
Initial allowance on loans purchased with credit deterioration		2,273		2,273	2,273
Provision for credit loss expense	542	1,697	557	2,202	2,322
Loans charged off	1	0	643	62	529
Recoveries collected	97	81	205	374	576
Allowance for credit losses, Ending Balance	25,569	25,595	25,569	25,595	25,450
Consumer Loans
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	1,980	1,812	2,258	2,118	2,118
Initial allowance on loans purchased with credit deterioration		20		20	20
Provision for credit loss expense	377	367	607	379	1,005
Loans charged off	840	368	1,640	995	1,568
Recoveries collected	306	150	598	459	683
Allowance for credit losses, Ending Balance	$ 1,823	$ 1,981	$ 1,823	$ 1,981	$ 2,258

XML

Loans and Allowance for Credit Losses - Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans Individually Evaluated (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	$ 9,621
Allowance for Credit Losses	141
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	351
Allowance for Credit Losses	0
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	9,270
Real Estate | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	351
Business Assets | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	351
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	9,270
Allowance for Credit Losses	141
Real Estate Loan | Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	533
Allowance for Credit Losses	0
Real Estate Loan | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	7,767
Allowance for Credit Losses	141
Real Estate Loan | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	9,270
Real Estate Loan | Real Estate | Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	533
Real Estate Loan | Real Estate | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	7,767
Real Estate Loan | Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Real Estate Loan | Business Assets | Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Real Estate Loan | Business Assets | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
1-4 Family | Real Estate Loan | Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Allowance for Credit Losses	0
1-4 Family | Real Estate Loan | Real Estate | Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
1-4 Family | Real Estate Loan | Business Assets | Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Multifamily | Real Estate Loan | Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	970
Allowance for Credit Losses	0
Multifamily | Real Estate Loan | Real Estate | Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	970
Multifamily | Real Estate Loan | Business Assets | Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	$ 0

XML

Loans and Allowance for Credit Losses - Credit Risk Profile of Loan Portfolio on Amortized Cost Basis Based on Risk Rating Category (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Credit Quality Information [Abstract]
Current fiscal year	$ 558,007	$ 792,071
Fiscal year before current fiscal year	699,958	1,402,051
Two years before current fiscal year	1,312,925	994,108
Three years before current fiscal year	929,158	619,354
Four years before current fiscal year	564,300	381,174
Prior	1,471,605	1,315,596
Revolving Loans	78,637	76,211
Current period gross writeoffs, current fiscal year	71	10
Current period gross writeoffs, fiscal year before current fiscal year	190	761
Current period gross writeoffs, two year before current fiscal year	622	208
Current period gross writeoffs, three year before current fiscal year	556	51
Current period gross writeoffs, four year before current fiscal year	58	93
Current period gross writeoffs, prior	1,641	1,508
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	5,614,591	5,580,565
Current period gross writeoffs, total loans receivables	3,138	2,631
Pass
Credit Quality Information [Abstract]
Current fiscal year	555,677	786,908
Fiscal year before current fiscal year	695,258	1,390,885
Two years before current fiscal year	1,301,213	976,531
Three years before current fiscal year	918,731	616,020
Four years before current fiscal year	561,719	376,655
Prior	1,436,895	1,254,871
Revolving Loans	77,910	75,700
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	5,547,403	5,477,570
Special Mention
Credit Quality Information [Abstract]
Current fiscal year	2,049	4,925
Fiscal year before current fiscal year	1,529	5,566
Two years before current fiscal year	5,793	15,110
Three years before current fiscal year	9,044	2,721
Four years before current fiscal year	1,638	3,368
Prior	18,009	42,350
Revolving Loans	88	10
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	38,151	74,050
Substandard
Credit Quality Information [Abstract]
Current fiscal year	281	238
Fiscal year before current fiscal year	3,171	5,600
Two years before current fiscal year	5,919	2,467
Three years before current fiscal year	1,383	613
Four years before current fiscal year	943	1,151
Prior	16,701	18,375
Revolving Loans	639	501
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	29,037	28,945
Agricultural Loans
Credit Quality Information [Abstract]
Current fiscal year	128,119	147,999
Fiscal year before current fiscal year	56,668	27,905
Two years before current fiscal year	26,016	10,044
Three years before current fiscal year	15,584	2,549
Four years before current fiscal year	3,110	1,921
Prior	3,917	5,854
Revolving Loans	0	0
Current period gross writeoffs, current fiscal year	0	0
Current period gross writeoffs, fiscal year before current fiscal year	64	276
Current period gross writeoffs, two year before current fiscal year	100	0
Current period gross writeoffs, three year before current fiscal year	52	0
Current period gross writeoffs, four year before current fiscal year	0	0
Current period gross writeoffs, prior	45	132
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	233,414	196,272
Current period gross writeoffs, total loans receivables	261	408
Agricultural Loans | Pass
Credit Quality Information [Abstract]
Current fiscal year	127,739	147,993
Fiscal year before current fiscal year	54,805	27,895
Two years before current fiscal year	25,999	10,044
Three years before current fiscal year	15,584	2,549
Four years before current fiscal year	3,110	1,883
Prior	3,917	5,854
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	231,154	196,218
Agricultural Loans | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	327	6
Fiscal year before current fiscal year	302	10
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	38
Prior	0	0
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	629	54
Agricultural Loans | Substandard
Credit Quality Information [Abstract]
Current fiscal year	53	0
Fiscal year before current fiscal year	1,561	0
Two years before current fiscal year	17	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,631	0
Commercial Industrial And Other Portfolio Segment
Credit Quality Information [Abstract]
Current fiscal year	171,300	291,351
Fiscal year before current fiscal year	264,169	309,188
Two years before current fiscal year	284,306	242,971
Three years before current fiscal year	203,627	155,119
Four years before current fiscal year	126,019	74,532
Prior	409,427	377,607
Revolving Loans	0	0
Current period gross writeoffs, current fiscal year	0	0
Current period gross writeoffs, fiscal year before current fiscal year	47	353
Current period gross writeoffs, two year before current fiscal year	207	0
Current period gross writeoffs, three year before current fiscal year	378	49
Current period gross writeoffs, four year before current fiscal year	10	20
Current period gross writeoffs, prior	1	107
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,458,849	1,450,768
Current period gross writeoffs, total loans receivables	643	529
Commercial Industrial And Other Portfolio Segment | Pass
Credit Quality Information [Abstract]
Current fiscal year	171,046	290,304
Fiscal year before current fiscal year	262,373	306,794
Two years before current fiscal year	282,671	232,198
Three years before current fiscal year	197,515	154,499
Four years before current fiscal year	124,654	73,906
Prior	401,109	347,957
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,439,368	1,405,658
Commercial Industrial And Other Portfolio Segment | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	189	1,047
Fiscal year before current fiscal year	1,031	1,857
Two years before current fiscal year	1,388	9,982
Three years before current fiscal year	5,927	562
Four years before current fiscal year	1,347	597
Prior	7,662	28,900
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	17,545	42,945
Commercial Industrial And Other Portfolio Segment | Substandard
Credit Quality Information [Abstract]
Current fiscal year	65	0
Fiscal year before current fiscal year	765	537
Two years before current fiscal year	247	791
Three years before current fiscal year	185	58
Four years before current fiscal year	18	29
Prior	656	750
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,936	2,165
Consumer Loans
Credit Quality Information [Abstract]
Current fiscal year	4,678	9,633
Fiscal year before current fiscal year	6,201	40,656
Two years before current fiscal year	28,000	21,589
Three years before current fiscal year	13,682	10,526
Four years before current fiscal year	5,774	4,534
Prior	4,887	4,076
Revolving Loans	0	0
Current period gross writeoffs, current fiscal year	71	22
Current period gross writeoffs, fiscal year before current fiscal year	43	177
Current period gross writeoffs, two year before current fiscal year	154	89
Current period gross writeoffs, three year before current fiscal year	126	10
Current period gross writeoffs, four year before current fiscal year	48	7
Current period gross writeoffs, prior	1,198	1,075
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	63,222	91,014
Current period gross writeoffs, total loans receivables	1,640	1,380
Consumer Loans | Pass
Credit Quality Information [Abstract]
Current fiscal year	4,678	9,547
Fiscal year before current fiscal year	6,171	40,225
Two years before current fiscal year	27,723	21,264
Three years before current fiscal year	13,491	10,387
Four years before current fiscal year	5,671	4,475
Prior	4,856	4,035
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	62,590	89,933
Consumer Loans | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	26
Two years before current fiscal year	24	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	24	26
Consumer Loans | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	86
Fiscal year before current fiscal year	30	405
Two years before current fiscal year	253	325
Three years before current fiscal year	191	139
Four years before current fiscal year	103	59
Prior	31	41
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	608	1,055
Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	3,859,106	3,842,511
Real Estate Loan | Construction and Land Development
Credit Quality Information [Abstract]
Current fiscal year	48,615	68,086
Fiscal year before current fiscal year	78,688	74,065
Two years before current fiscal year	19,267	27,392
Three years before current fiscal year	16,051	5,188
Four years before current fiscal year	5,290	10,795
Prior	22,946	19,551
Revolving Loans	0	0
Current period gross writeoffs, current fiscal year	0	0
Current period gross writeoffs, fiscal year before current fiscal year	0	0
Current period gross writeoffs, two year before current fiscal year	0	0
Current period gross writeoffs, three year before current fiscal year	0	0
Current period gross writeoffs, four year before current fiscal year	0	14
Current period gross writeoffs, prior	0	0
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	190,857	205,077
Current period gross writeoffs, total loans receivables	0	14
Real Estate Loan | Construction and Land Development | Pass
Credit Quality Information [Abstract]
Current fiscal year	48,615	68,086
Fiscal year before current fiscal year	78,688	74,065
Two years before current fiscal year	19,261	27,392
Three years before current fiscal year	16,051	5,188
Four years before current fiscal year	5,290	10,795
Prior	22,542	19,115
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	190,447	204,641
Real Estate Loan | Construction and Land Development | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	390	0
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	390	0
Real Estate Loan | Construction and Land Development | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	6	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	14	436
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	20	436
Real Estate Loan | Agricultural
Credit Quality Information [Abstract]
Current fiscal year	16,436	19,437
Fiscal year before current fiscal year	19,210	164,812
Two years before current fiscal year	158,601	58,813
Three years before current fiscal year	55,492	53,249
Four years before current fiscal year	51,161	20,589
Prior	83,720	74,232
Revolving Loans	0	0
Current period gross writeoffs, current fiscal year	0	0
Current period gross writeoffs, fiscal year before current fiscal year	0	0
Current period gross writeoffs, two year before current fiscal year	0	0
Current period gross writeoffs, three year before current fiscal year	0	0
Current period gross writeoffs, four year before current fiscal year	0	0
Current period gross writeoffs, prior	0	0
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	384,620	391,132
Current period gross writeoffs, total loans receivables	0	0
Real Estate Loan | Agricultural | Pass
Credit Quality Information [Abstract]
Current fiscal year	15,266	19,231
Fiscal year before current fiscal year	18,873	164,812
Two years before current fiscal year	157,635	57,815
Three years before current fiscal year	54,503	53,249
Four years before current fiscal year	51,161	19,419
Prior	80,611	71,189
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	378,049	385,715
Real Estate Loan | Agricultural | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	1,170	206
Fiscal year before current fiscal year	196	0
Two years before current fiscal year	0	627
Three years before current fiscal year	989	0
Four years before current fiscal year	0	1,170
Prior	2,028	1,868
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	4,383	3,871
Real Estate Loan | Agricultural | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	141	0
Two years before current fiscal year	966	371
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	1,081	1,175
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	2,188	1,546
Real Estate Loan | Commercial And Multifamily Portfolio Segment
Credit Quality Information [Abstract]
Current fiscal year	150,225	189,294
Fiscal year before current fiscal year	235,608	686,704
Two years before current fiscal year	719,347	550,570
Three years before current fiscal year	545,144	319,254
Four years before current fiscal year	306,238	241,661
Prior	821,725	716,350
Revolving Loans	0	0
Current period gross writeoffs, current fiscal year	0	0
Current period gross writeoffs, fiscal year before current fiscal year	0	0
Current period gross writeoffs, two year before current fiscal year	151	0
Current period gross writeoffs, three year before current fiscal year	0	0
Current period gross writeoffs, four year before current fiscal year	0	25
Current period gross writeoffs, prior	300	0
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	2,778,287	2,703,833
Current period gross writeoffs, total loans receivables	451	25
Real Estate Loan | Commercial And Multifamily Portfolio Segment | Pass
Credit Quality Information [Abstract]
Current fiscal year	149,862	185,628
Fiscal year before current fiscal year	235,559	680,099
Two years before current fiscal year	711,647	548,733
Three years before current fiscal year	542,617	317,075
Four years before current fiscal year	305,947	239,323
Prior	806,776	701,464
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	2,752,408	2,672,322
Real Estate Loan | Commercial And Multifamily Portfolio Segment | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	363	3,666
Fiscal year before current fiscal year	0	2,706
Two years before current fiscal year	4,174	1,317
Three years before current fiscal year	2,051	2,159
Four years before current fiscal year	291	1,563
Prior	7,367	7,778
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	14,246	19,189
Real Estate Loan | Commercial And Multifamily Portfolio Segment | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	49	3,899
Two years before current fiscal year	3,526	520
Three years before current fiscal year	476	20
Four years before current fiscal year	0	775
Prior	7,582	7,108
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	11,633	12,322
1-4 Family | Real Estate Loan
Credit Quality Information [Abstract]
Current fiscal year	38,634	66,271
Fiscal year before current fiscal year	39,414	98,721
Two years before current fiscal year	77,388	82,729
Three years before current fiscal year	79,578	73,469
Four years before current fiscal year	66,708	27,142
Prior	124,983	117,926
Revolving Loans	78,637	76,211
Current period gross writeoffs, current fiscal year	0	10
Current period gross writeoffs, fiscal year before current fiscal year	36	0
Current period gross writeoffs, two year before current fiscal year	10	0
Current period gross writeoffs, three year before current fiscal year	0	0
Current period gross writeoffs, four year before current fiscal year	0	14
Current period gross writeoffs, prior	97	63
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	505,342	542,469
Current period gross writeoffs, total loans receivables	143	87
1-4 Family | Real Estate Loan | Pass
Credit Quality Information [Abstract]
Current fiscal year	38,471	66,119
Fiscal year before current fiscal year	38,789	96,995
Two years before current fiscal year	76,277	79,085
Three years before current fiscal year	78,970	73,073
Four years before current fiscal year	65,886	26,854
Prior	117,084	105,257
Revolving Loans	77,910	75,700
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	493,387	523,083
1-4 Family | Real Estate Loan | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	967
Two years before current fiscal year	207	3,184
Three years before current fiscal year	77	0
Four years before current fiscal year	0	0
Prior	562	3,804
Revolving Loans	88	10
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	934	7,965
1-4 Family | Real Estate Loan | Substandard
Credit Quality Information [Abstract]
Current fiscal year	163	152
Fiscal year before current fiscal year	625	759
Two years before current fiscal year	904	460
Three years before current fiscal year	531	396
Four years before current fiscal year	822	288
Prior	7,337	8,865
Revolving Loans	639	501
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	$ 11,021	$ 11,421

XML

Loans and Allowance for Credit Losses - Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Loans Receivable Aging Analysis [Abstract]
Total Past Due	$ 5,606,506	$ 5,575,585
Total Loans Receivable	5,614,591	5,580,565
Total Loans> 90 Days and Accruing	0	0
Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	3,859,106	3,842,511
Total Loans> 90 Days and Accruing	0	0
Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	505,342	542,469
Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	190,857	205,077
Total Loans> 90 Days and Accruing	0	0
Agricultural
Loans Receivable Aging Analysis [Abstract]
Total Past Due	618,400	588,500
Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	384,620	391,132
Total Loans> 90 Days and Accruing	0	0
Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	505,342	542,469
Total Loans> 90 Days and Accruing	0	0
Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	338,167	319,129
Total Loans> 90 Days and Accruing	0	0
Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	2,440,120	2,384,704
Total Loans> 90 Days and Accruing	0	0
Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	233,414	196,272
Total Loans> 90 Days and Accruing	0	0
Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,283,631	1,266,159
Total Loans> 90 Days and Accruing	0	0
Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	63,222	91,014
Total Loans> 90 Days and Accruing	0	0
All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	175,218	184,609
Total Loans> 90 Days and Accruing	0	0
Financial Asset, 30 to 59 Days Past Due
Loans Receivable Aging Analysis [Abstract]
Total Past Due	6,366	5,679
Financial Asset, 30 to 59 Days Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	3,803	4,023
Financial Asset, 30 to 59 Days Past Due | Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Financial Asset, 30 to 59 Days Past Due | Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	141	0
Financial Asset, 30 to 59 Days Past Due | Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Past Due	3,081	3,054
Financial Asset, 30 to 59 Days Past Due | Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	150
Financial Asset, 30 to 59 Days Past Due | Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	581	819
Financial Asset, 30 to 59 Days Past Due | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Financial Asset, 30 to 59 Days Past Due | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	2,290	673
Financial Asset, 30 to 59 Days Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	273	983
Financial Asset, 30 to 59 Days Past Due | All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due
Loans Receivable Aging Analysis [Abstract]
Total Past Due	3,557	1,424
Financial Asset, 60 to 89 Days Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1,510	1,189
Financial Asset, 60 to 89 Days Past Due | Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	6	585
Financial Asset, 60 to 89 Days Past Due | Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due | Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1,334	530
Financial Asset, 60 to 89 Days Past Due | Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due | Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	170	74
Financial Asset, 60 to 89 Days Past Due | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1,190	0
Financial Asset, 60 to 89 Days Past Due | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	784	73
Financial Asset, 60 to 89 Days Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	73	162
Financial Asset, 60 to 89 Days Past Due | All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due
Loans Receivable Aging Analysis [Abstract]
Total Past Due	12,081	7,646
Financial Asset, Equal to or Greater than 90 Days Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	11,142	5,785
Financial Asset, Equal to or Greater than 90 Days Past Due | Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	450	450
Financial Asset, Equal to or Greater than 90 Days Past Due | Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	392	1
Financial Asset, Equal to or Greater than 90 Days Past Due | Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Past Due	2,188	1,018
Financial Asset, Equal to or Greater than 90 Days Past Due | Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Past Due	551	551
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	7,561	3,765
Financial Asset, Equal to or Greater than 90 Days Past Due | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	804	1,531
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	135	330
Financial Asset, Equal to or Greater than 90 Days Past Due | All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Total Past Due
Loans Receivable Aging Analysis [Abstract]
Total Past Due	22,004	14,749
Total Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	16,455	10,997
Total Past Due | Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	456	1,035
Total Past Due | Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	533	1
Total Past Due | Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Past Due	6,603	4,602
Total Past Due | Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Past Due	551	701
Total Past Due | Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	8,312	4,658
Total Past Due | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1,190	0
Total Past Due | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	3,878	2,277
Total Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	481	1,475
Total Past Due | All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	0	0
Current
Loans Receivable Aging Analysis [Abstract]
Total Past Due	5,592,587	5,565,816
Current | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	3,842,651	3,831,514
Current | Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	190,401	204,042
Current | Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	384,087	391,131
Current | Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Past Due	498,739	537,867
Current | Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Past Due	337,616	318,428
Current | Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	2,431,808	2,380,046
Current | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	232,224	196,272
Current | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1,279,753	1,263,882
Current | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	62,741	89,539
Current | All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	$ 175,218	$ 184,609

XML

Loans and Allowance for Credit Losses - Amortized Cost Basis of Loans on Nonaccrual Status and Nonaccrual Loans Individually Evaluated (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	$ 13,182	$ 18,571
Financing Receivable, Nonaccrual	17,148	18,832
Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	6	0
Financing Receivable, Nonaccrual	6	0
Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	1,647	1,146
Financing Receivable, Nonaccrual	1,647	1,146
1-4 Family Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	3,726	4,679
Financing Receivable, Nonaccrual	4,840	4,940
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	6,567	10,237
Financing Receivable, Nonaccrual	9,419	10,237
Loans Secured by Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	11,946	16,062
Financing Receivable, Nonaccrual	15,912	16,323
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	979	1,931
Financing Receivable, Nonaccrual	979	1,931
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	257	578
Financing Receivable, Nonaccrual	$ 257	$ 578

XML

Loans and Allowance for Credit Losses - Amortized Cost Basis of Loans Experiencing Financial Difficulty and Modified (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.05%	0.05%
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.05%	0.04%
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.00%	0.00%
Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.01%	0.01%
Residential Properties | Real Estate Loan | 1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.01%	0.02%
Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.03%	0.02%
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.00%	0.01%
Principal Forgiveness
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	$ 0	$ 0
Principal Forgiveness | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Principal Forgiveness | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Principal Forgiveness | Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Principal Forgiveness | Residential Properties | Real Estate Loan | 1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Principal Forgiveness | Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Principal Forgiveness | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Payment Delay Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	1,387	1,385
Payment Delay Investment | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	1,233	1,160
Payment Delay Investment | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	3	7
Payment Delay Investment | Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	312	333
Payment Delay Investment | Residential Properties | Real Estate Loan | 1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	47	57
Payment Delay Investment | Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	874	770
Payment Delay Investment | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	151	218
Term Extension Modifications
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	1,109	1,276
Term Extension Modifications | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	980	956
Term Extension Modifications | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	10	41
Term Extension Modifications | Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Term Extension Modifications | Residential Properties | Real Estate Loan | 1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	768	819
Term Extension Modifications | Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	212	137
Term Extension Modifications | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	119	279
Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	472	0
Interest Rate Reduction | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	472	0
Interest Rate Reduction | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Interest Rate Reduction | Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Interest Rate Reduction | Residential Properties | Real Estate Loan | 1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	0	0
Interest Rate Reduction | Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	472	0
Interest Rate Reduction | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Performance of Loans Modified (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	$ 0	$ 39
60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	96	0
90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	116	16
Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	212	55
Real Estate Loan | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	28
Real Estate Loan | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Real Estate Loan | 90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Real Estate Loan | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	28
Consumer Loans | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Consumer Loans | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	96	0
Consumer Loans | 90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	116	16
Consumer Loans | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	212	16
Commercial and Industrial Loans | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	11
Commercial and Industrial Loans | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Commercial and Industrial Loans | 90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Commercial and Industrial Loans | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	11
1-4 Family | Residential Properties | Real Estate Loan | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	28
1-4 Family | Residential Properties | Real Estate Loan | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
1-4 Family | Residential Properties | Real Estate Loan | 90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
1-4 Family | Residential Properties | Real Estate Loan | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	$ 0	$ 28

XML

Loans and Allowance for Credit Losses - Financial Effect of Loan Modifications (Details)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted Average Interest Rate Reduction	0.00%	4.75%
Weighted Average Term Extension (in months)	7 months	4 months 28 days
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted Average Interest Rate Reduction	0.00%	4.75%
Weighted Average Term Extension (in months)	7 months	5 months 3 days
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted Average Interest Rate Reduction	0.00%	0.00%
Weighted Average Term Extension (in months)		3 months

XML

Loans and Allowance for Credit Losses - Summary of Purchased Credit Deteriorated (PCD) Loans (Details) - Blackhawk Acquisition [Member[ $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Summary Of Purchased Credit Deteriorated Loans [Line Items]
Fair value of PCD loans	$ 115,250
PCD allowance for credit losses at acquisition	(3,791)
Non-credit discount/(premium) at acquisition	(5,476)
Fair value of purchased credit deteriorated loans at acquisition	$ 105,983

XML

Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]
Goodwill, Gross Carrying Value	$ 207,151	$ 200,221
Goodwill, Accumulated Amortization	3,760	3,760
Goodwill and Intangible Assets, Gross Carrying Value	320,968	309,733
Goodwill and Intangible Assets, Accumulated Amortization	61,664	52,361
Intangibles from Branch Acquisition
Finite Lived Intangible Assets [Line Items]
Intangible Assets, Gross Carrying Value	3,015	3,015
Intangible Assets, Accumulated Amortization	3,015	3,015
Core Deposit Intangibles
Finite Lived Intangible Assets [Line Items]
Intangible Assets, Gross Carrying Value	79,945	79,945
Intangible Assets, Accumulated Amortization	42,411	34,966
Other Intangibles
Finite Lived Intangible Assets [Line Items]
Intangible Assets, Gross Carrying Value	30,857	26,552
Intangible Assets, Accumulated Amortization	$ 12,478	$ 10,620

XML

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended
	Mar. 20, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023
Purdum, Gray, Ingledue, Beck, Inc.
Finite Lived Intangible Assets [Line Items]
Goodwill acquired during period				$ 6.0
Blackhawk Bancorp, Inc
Finite Lived Intangible Assets [Line Items]
Goodwill acquired during period	$ 50.1		$ 50.1
Mid Rivers
Finite Lived Intangible Assets [Line Items]
Goodwill acquired during period		$ 6.9

XML

Goodwill and Intangible Assets - Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2023
Less purchase accounting adjustments:
Goodwill	$ 203,391			$ 196,461
Purdum, Gray, Ingledue, Beck, Inc.
Goodwill [Line Items]
Unallocated purchase price			$ 10,145
Less purchase accounting adjustments:
Insurance Company intangible			5,770
Other liabilities			(1,576)
Goodwill, purchase accounting adjustments			4,194
Goodwill			$ 5,951
Mid Rivers
Goodwill [Line Items]
Unallocated purchase price	10,059
Less purchase accounting adjustments:
Insurance Company intangible	4,305
Other liabilities	(1,176)
Goodwill, purchase accounting adjustments	3,129
Goodwill	$ 6,930
Blackhawk Bancorp, Inc
Goodwill [Line Items]
Unallocated purchase price		$ 26,955
Less purchase accounting adjustments:
Fair value of securities		(25,521)
Fair value of loans, net		(43,477)
Fair value of premises and equipment		(3,856)
Fair value of time deposits		2,311
Fair value of subordinated and junior subordinated debentures		3,707
Increase in core deposit intangible		33,731
Increase in mortgage servicing rights		3,344
Other assets		6,619
Goodwill, purchase accounting adjustments		(23,142)
Goodwill		$ 50,097

XML

Goodwill and Intangible Assets - Intangible Assets Mortgage Servicing Rights (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]
Beginning balance	$ 6,859	$ 331	$ 331
Mortgage servicing rights acquired during period	0	7,062	7,070
Adjustment to valuation reserve	(77)	0	(8)
Mortgage servicing rights amortized	(939)	(161)	(524)
Interest only strip	(8)	(8)	(10)
Ending balance	$ 5,835	$ 7,224	$ 6,859

XML

Goodwill and Intangible Assets - Schedule of Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 3,405	$ 2,568	$ 10,242	$ 5,567
Core Deposit Intangibles
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	2,416	1,857	7,445	3,916
Customer List Intangibles
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	702	578	1,858	1,490
Mortgage Servicing Rights
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 287	$ 133	$ 939	$ 161

XML

Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Aggregate amortization expense:
For period 01/01/24 - 09/30/24	$ 3,405	$ 2,568	$ 10,242	$ 5,567
Estimated amortization expense:
For period 10/01/24 - 12/31/24	3,436		3,436
For year ended 12/31/25	12,310		12,310
For year ended 12/31/26	10,594		10,594
For year ended 12/31/27	9,330		9,330
For year ended 12/31/28	$ 8,116		$ 8,116

XML

Repurchase Agreements and Other Borrowings - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Repurchase Agreements And Other Borrowings [Abstract]
Securities sold under agreements to repurchase	$ 204,343	$ 213,721
Securities sold under agreements to repurchase decrease	$ (9,400)
Securities sold under agreements to repurchase weighted average rate	3.05%
Gross FHLB borrowings	$ 238,600	$ 263,600

XML

Repurchase Agreements and Other Borrowings - Schedule of Securities Financing Transactions (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets Sold Under Agreements To Repurchase [Line Items]
Securities pledged to Repurchase Agreements	$ 204,343	$ 213,721
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Assets Sold Under Agreements To Repurchase [Line Items]
Securities pledged to Repurchase Agreements	63,127	46,544
Mortgage-backed Securities: GSE Residential
Assets Sold Under Agreements To Repurchase [Line Items]
Securities pledged to Repurchase Agreements	$ 141,216	$ 167,177

XML

Repurchase Agreements and Other Borrowings - Federal Home Loan Bank, Advances (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 238,600,000	$ 263,600,000
Interest Rate 4.59% - Maturity Date November 8, 2024
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 25,000,000
Federal Home Loan Bank Advances, Term (in years)	2 years
Federal Home Loan Bank, Advances, Interest Rate	4.59%
Federal Home Loan Bank, Advances, Maturity Date	Nov. 08, 2024
Interest Rate 1.45% - Maturity Date December 31, 2024
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 10,000,000
Federal Home Loan Bank Advances, Term (in years)	5 years
Federal Home Loan Bank, Advances, Interest Rate	1.45%
Federal Home Loan Bank, Advances, Maturity Date	Dec. 31, 2024
Interest Rate 0.91% - Maturity Date March 10, 2025
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 5,000,000
Federal Home Loan Bank Advances, Term (in years)	5 years
Federal Home Loan Bank, Advances, Interest Rate	0.91%
Federal Home Loan Bank, Advances, Maturity Date	Mar. 10, 2025
Interest Rate 2.64% - Maturity Date December 23, 2025
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 3,605,826
Federal Home Loan Bank Advances, Term (in years)	10 years
Federal Home Loan Bank, Advances, Interest Rate	2.64%
Federal Home Loan Bank, Advances, Maturity Date	Dec. 23, 2025
Interest Rate 4.40% - Maturity Date June 15, 2026
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 25,000,000
Federal Home Loan Bank Advances, Term (in years)	3 years
Federal Home Loan Bank, Advances, Interest Rate	4.40%
Federal Home Loan Bank, Advances, Maturity Date	Jun. 15, 2026
Interest Rate 4.37% - Maturity Date May 10, 2027
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 25,000,000
Federal Home Loan Bank Advances, Term (in years)	3 years
Federal Home Loan Bank, Advances, Interest Rate	4.37%
Federal Home Loan Bank, Advances, Maturity Date	May 10, 2027
Interest Rate 4.32% - Maturity Date May 17, 2027
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 25,000,000
Federal Home Loan Bank Advances, Term (in years)	3 years
Federal Home Loan Bank, Advances, Interest Rate	4.32%
Federal Home Loan Bank, Advances, Maturity Date	May 17, 2027
Interest Rate 3.49% - Maturity Date December 8, 2027
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 50,000,000
Federal Home Loan Bank Advances, Term (in years)	4 years
Federal Home Loan Bank, Advances, Interest Rate	3.49%
Federal Home Loan Bank, Advances, Maturity Date	Dec. 08, 2027
Interest Rate 3.82% - Maturity Date June 29, 2028
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 25,000,000,000
Federal Home Loan Bank Advances, Term (in years)	5 years
Federal Home Loan Bank, Advances, Interest Rate	3.82%
Federal Home Loan Bank, Advances, Maturity Date	Jun. 29, 2028
Interest Rate 3.93% - Maturity Date June 27, 2029
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 25,000,000
Federal Home Loan Bank Advances, Term (in years)	5 years
Federal Home Loan Bank, Advances, Interest Rate	3.93%
Federal Home Loan Bank, Advances, Maturity Date	Jun. 27, 2029
Interest Rate 1.15% - Maturity Date October 3, 2029
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 5,000,000
Federal Home Loan Bank Advances, Term (in years)	10 years
Federal Home Loan Bank, Advances, Interest Rate	1.15%
Federal Home Loan Bank, Advances, Maturity Date	Oct. 03, 2029
Interest Rate 1.12% - Maturity Date October 3, 2029
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 5,000,000
Federal Home Loan Bank Advances, Term (in years)	10 years
Federal Home Loan Bank, Advances, Interest Rate	1.12%
Federal Home Loan Bank, Advances, Maturity Date	Oct. 03, 2029
Interest Rate 1.39% - Maturity Date December 31, 2029
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 10,000,000
Federal Home Loan Bank Advances, Term (in years)	10 years
Federal Home Loan Bank, Advances, Interest Rate	1.39%
Federal Home Loan Bank, Advances, Maturity Date	Dec. 31, 2029

XML

Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available-for-sale securities:
Total available-for-sale securities	$ 1,115,552	$ 1,171,572
Equity securities, at fair value	4,424	4,074
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale securities:
Total available-for-sale securities	194,169	211,656
Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	280,444	288,616
Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	576,849	602,300
Other Securities
Available-for-sale securities:
Total available-for-sale securities	64,090	69,000
Fair Value, Recurring
Available-for-sale securities:
Total available-for-sale securities	1,115,552	1,171,572
Equity securities, at fair value	4,424	4,074
Loans held for sale, fair value	8,085	4,980
Derivative assets: interest rate swaps	2,339	3,166
Total assets	1,130,400	1,183,792
Derivative liabilities: interest swaps	1,755	2,217
Fair Value, Recurring | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale securities:
Total available-for-sale securities	194,169	211,656
Fair Value, Recurring | Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	280,444	288,616
Fair Value, Recurring | Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	576,849	602,300
Fair Value, Recurring | Other Securities
Available-for-sale securities:
Total available-for-sale securities	64,090	69,000
Quoted Prices in Active Markets for Identical Assets (Level 1)
Available-for-sale securities:
Total available-for-sale securities	0	0
Equity securities, at fair value	4,424	4,074
Loans held for sale, fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring
Available-for-sale securities:
Total available-for-sale securities	0	0
Equity securities, at fair value	4,424	4,074
Loans held for sale, fair value	0	0
Derivative assets: interest rate swaps	0	0
Total assets	4,424	4,074
Derivative liabilities: interest swaps	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale securities:
Total available-for-sale securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Other Securities
Available-for-sale securities:
Total available-for-sale securities	0	0
Significant Other Observable Inputs (Level 2)
Available-for-sale securities:
Total available-for-sale securities	1,109,585	1,165,409
Equity securities, at fair value	0	0
Loans held for sale, fair value	8,085	4,980
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring
Available-for-sale securities:
Total available-for-sale securities	1,109,585	1,165,409
Equity securities, at fair value	0	0
Loans held for sale, fair value	8,085	4,980
Derivative assets: interest rate swaps	2,339	3,166
Total assets	1,120,009	1,173,555
Derivative liabilities: interest swaps	1,755	2,217
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale securities:
Total available-for-sale securities	194,169	211,656
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	280,444	288,616
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	576,849	602,300
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Other Securities
Available-for-sale securities:
Total available-for-sale securities	58,123	62,837
Significant Unobservable Inputs (Level 3)
Available-for-sale securities:
Total available-for-sale securities	5,967	6,163
Equity securities, at fair value	0	0
Loans held for sale, fair value	0	0
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring
Available-for-sale securities:
Total available-for-sale securities	5,967	6,163
Equity securities, at fair value	0	0
Loans held for sale, fair value	0	0
Derivative assets: interest rate swaps	0	0
Total assets	5,967	6,163
Derivative liabilities: interest swaps	0	0
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale securities:
Total available-for-sale securities	0	0
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	0	0
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	0	0
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Other Securities
Available-for-sale securities:
Total available-for-sale securities	$ 5,967	$ 6,163

XML

Fair Value of Assets and Liabilities - Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 5,966	$ 5,760	$ 6,163	$ 10,000
Transfers into Level 3	1	0	3	10
Transfers out of Level 3		0		(4,250)
Maturities	0		(199)
Ending balance	5,967	5,760	5,967	5,760
Obligations of States and Political Subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3		0		0
Maturities	0		0
Ending balance	0	0	0	0
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	5,966	5,760	6,163	10,000
Transfers into Level 3	1	0	3	10
Transfers out of Level 3		0		(4,250)
Maturities	0		(199)
Ending balance	$ 5,967	$ 5,760	$ 5,967	$ 5,760

XML

Fair Value of Assets and Liabilities - Additional Information (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Allowance for Credit Losses	$ 68,774,000	$ 68,241,000	$ 68,675,000	$ 68,312,000	$ 58,719,000	$ 59,093,000
Other real estate owned	1,832,000		1,163,000
Mortgage Servicing Rights
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Finite-lived intangible assets, net	5,835,000	7,224,000	6,859,000			$ 331,000
Mortgage servicing rights (MSR) impairment (recovery)	(77,000)	$ 0	$ (8,000)
Fair Value, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Carrying amount of loans with a specific allowance	594,000
Fair value of loans with a specific allowance	579,000
Allowance for Credit Losses	15,000
Fair Value, Nonrecurring | Carrying Amount
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned	1,800,000
Fair Value, Nonrecurring | Fair Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned	$ 47,000

XML

Fair Value of Assets and Liabilities - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Collateral Dependent Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	$ 579	$ 1,028
Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	47	24
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateral Dependent Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	0	0
Significant Other Observable Inputs (Level 2) | Collateral Dependent Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	0	0
Significant Other Observable Inputs (Level 2) | Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	0	0
Significant Unobservable Inputs (Level 3) | Collateral Dependent Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	579	1,028
Significant Unobservable Inputs (Level 3) | Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	$ 47	$ 24

XML

Fair Value of Assets and Liabilities - Significant Unobservable Inputs Used in Valuation of Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Collateral Dependent Loans | Level 3 | Minimum | Third Party Valuations
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans	0.00%	0.00%
Collateral Dependent Loans | Level 3 | Maximum | Third Party Valuations
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans	40.00%	40.00%
Collateral Dependent Loans | Level 3 | Weighted Average | Third Party Valuations
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans	20.00%	20.00%
Foreclosed Assets Held-for-sale | Level 3 | Minimum | Third Party Valuations
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans	0.00%	0.00%
Foreclosed Assets Held-for-sale | Level 3 | Maximum | Third Party Valuations
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans	40.00%	40.00%
Foreclosed Assets Held-for-sale | Level 3 | Weighted Average | Third Party Valuations
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans	35.00%	35.00%
Fair Value, Nonrecurring | Collateral Dependent Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	$ 579	$ 1,028
Fair Value, Nonrecurring | Collateral Dependent Loans | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	579	1,028
Fair Value, Nonrecurring | Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	$ 47	$ 24

XML

Fair Value of Assets and Liabilities - Summary of Estimated Fair Values of Company Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial assets
Total available-for-sale securities	$ 1,115,552	$ 1,171,572
Held-to-maturity securities	2,298	2,286
Equity securities, at fair value	4,424	4,074
Fair Value, Inputs, Level 1 [Member]
Financial assets
Cash and due from banks	164,165	134,082
Federal funds sold	26	8,982
Certificates of deposit investments	0	0
Total available-for-sale securities	0	0
Held-to-maturity securities	2,298	2,286
Equity securities, at fair value	4,424	4,074
Loans held for sale	0	0
Loans net of allowance for credit losses	0	0
Interest receivable	0	0
Federal Reserve Bank stock	0	0
Federal Home Loan Bank stock	0	0
Financial liabilities
Deposits	0	0
Securities sold under agreements to repurchase	0	0
Interest payable	0	0
Federal Home Loan Bank borrowings	0	0
Fair Value, Inputs, Level 1 [Member] | Subordinated Debt
Financial liabilities
Subordinated debt, net	0	0
Fair Value, Inputs, Level 1 [Member] | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	0	0
Fair Value, Inputs, Level 2 [Member]
Financial assets
Cash and due from banks	0	0
Federal funds sold	0	0
Certificates of deposit investments	3,500	1,470
Total available-for-sale securities	1,109,585	1,165,409
Held-to-maturity securities	0	0
Equity securities, at fair value	0	0
Loans held for sale	8,085	4,980
Loans net of allowance for credit losses	0	0
Interest receivable	38,387	35,082
Federal Reserve Bank stock	19,855	19,855
Federal Home Loan Bank stock	9,555	9,758
Financial liabilities
Deposits	5,053,589	5,076,066
Securities sold under agreements to repurchase	204,343	213,714
Interest payable	6,491	5,437
Federal Home Loan Bank borrowings	238,911	261,206
Fair Value, Inputs, Level 2 [Member] | Subordinated Debt
Financial liabilities
Subordinated debt, net	104,836	102,018
Fair Value, Inputs, Level 2 [Member] | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	21,076	21,524
Level 3
Financial assets
Cash and due from banks	0	0
Federal funds sold	0	0
Certificates of deposit investments	0	0
Total available-for-sale securities	5,967	6,163
Held-to-maturity securities	0	0
Equity securities, at fair value	0	0
Loans held for sale	0	0
Loans net of allowance for credit losses	5,228,689	5,235,525
Interest receivable	0	0
Federal Reserve Bank stock	0	0
Federal Home Loan Bank stock	0	0
Financial liabilities
Deposits	953,708	966,211
Securities sold under agreements to repurchase	0	0
Interest payable	0	0
Federal Home Loan Bank borrowings	0	0
Level 3 | Subordinated Debt
Financial liabilities
Subordinated debt, net	0	0
Level 3 | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	0	0
Carrying Amount
Financial assets
Cash and due from banks	164,165	134,082
Federal funds sold	26	8,982
Certificates of deposit investments	3,500	1,470
Total available-for-sale securities	1,115,552	1,171,572
Held-to-maturity securities	2,298	2,286
Equity securities, at fair value	4,424	4,074
Loans held for sale	8,085	4,980
Loans net of allowance for credit losses	5,537,732	5,506,910
Interest receivable	38,387	35,082
Federal Reserve Bank stock	19,855	19,855
Federal Home Loan Bank stock	9,555	9,758
Financial liabilities
Deposits	6,088,834	6,123,659
Securities sold under agreements to repurchase	204,343	213,721
Interest payable	6,491	5,437
Federal Home Loan Bank borrowings	238,712	263,787
Carrying Amount | Subordinated Debt
Financial liabilities
Subordinated debt, net	87,373	106,755
Carrying Amount | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	24,224	24,058
Fair Value
Financial assets
Cash and due from banks	164,165	134,082
Federal funds sold	26	8,982
Certificates of deposit investments	3,500	1,470
Total available-for-sale securities	1,115,552	1,171,572
Held-to-maturity securities	2,298	2,286
Equity securities, at fair value	4,424	4,074
Loans held for sale	8,085	4,980
Loans net of allowance for credit losses	5,228,689	5,235,525
Interest receivable	38,387	35,082
Federal Reserve Bank stock	19,855	19,855
Federal Home Loan Bank stock	9,555	9,758
Financial liabilities
Deposits	6,007,297	6,042,277
Securities sold under agreements to repurchase	204,343	213,714
Interest payable	6,491	5,437
Federal Home Loan Bank borrowings	238,911	261,206
Fair Value | Subordinated Debt
Financial liabilities
Subordinated debt, net	85,637	102,018
Fair Value | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	$ 21,076	$ 21,524

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Business Combinations - Additional Information (Details) - Blackhawk Bancorp, Inc - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 20, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Business Acquisition [Line Items]
Conversion of common stock	1.15
Goodwill acquired during period	$ 50,100		$ 50,100
Pre-tax of acquisition costs		$ 100	$ 2,100	$ 2,500	$ 2,600
ASU 2016-13
Business Acquisition [Line Items]
Allowance for credit losses	3,800
Allowance for credit losses on non-PCD loans	$ 618,330
Core Deposit Intangibles
Business Acquisition [Line Items]
Intangible asset estimated useful life	10 years

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Business Combinations - Summary of Fair Value of Assets Acquired and Liabilities Assumed (Details) - Blackhawk Bancorp, Inc $ in Thousands	Mar. 20, 2023 USD ($)
Liabilities
Total consideration paid	$ 93,510
Fair Value Adjustments
Assets
Cash and due from banks	55,600
Loans held for sale	3,222
Loans, net	722,866
Investment securities	377,969
Short-term investments	869
FHLB stock	1,737
Premises and equipment	12,366
Accrued interest receivable	4,029
Prepaid expenses	1,182
Other assets	20,742
Core deposit intangible	34,590
Income tax receivable	2,077
Deferred tax asset	22,152
Mortgage servicing rights	7,031
Total assets acquired	1,266,432
Liabilities
Deposits	1,194,972
Subordinated and Junior Subordinated debt	16,448
Accrued interest payable	1,091
Accrued and other liabilities	10,508
Total liabilities assumed	1,223,019
Net assets acquired	43,413
Total consideration paid	93,510
Goodwill	$ 50,097

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Business Combinations - Summary of Consideration Transferred (Details) - Blackhawk Bancorp, Inc	Mar. 20, 2023 USD ($)
Business Acquisition [Line Items]
Common stock issued (3,290,222 shares)	$ 93,508,000
Cash consideration	1,928
Total consideration paid	$ 93,510,000

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Business Combinations - Summary of Consideration Transferred (Parenthetical) (Details)	Mar. 20, 2023 shares
Blackhawk Bancorp, Inc
Business Acquisition [Line Items]
Consideration paid in shares	3,290,222

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Business Combinations - Summary of Purchased Credit Deteriorated (PCD) Loans (Details) - Blackhawk Bancorp, Inc $ in Thousands	Mar. 20, 2023 USD ($)
Business Acquisition [Line Items]
Unpaid principal balance	$ 115,250
PCD allowance for credit losses at acquisition	(3,791)
Non-credit discount on acquired loans	(5,476)
Fair value of PCD loans	$ 105,983

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Business Combinations - Unaudited Pro Forma Condensed Combined Financial Information (Details) - Blackhawk Bancorp, Inc - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Business Acquisition [Line Items]
Net interest income	$ 57,245	$ 171,635
Provision for credit losses	6,246	6,768
Non-interest income	25,205	73,892
Non-interest expense	60,741	166,430
Income before taxes	15,463	72,329
Income tax expense	3,830	17,069
Net income	$ 11,633	$ 55,260
Earnings per share
Basic	$ 0.52	$ 2.62
Diluted	$ 0.52	$ 2.61
Basic weighted average shares o/s	22,220,438	21,086,802
Diluted weighted average shares o/s	22,319,334	21,176,946

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Leases - Additional Information (Details)	Sep. 30, 2024
Minimum
Lessee Lease Description [Line Items]
Renewal term	1 year
Maximum
Lessee Lease Description [Line Items]
Renewal term	25 years

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Leases - Summary of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Leases, Operating [Abstract]
Operating lease right-of-use assets	$ 14,560	$ 14,306	$ 14,192
Operating lease liabilities	$ 14,873	$ 14,615	$ 14,503
Weighted-average remaining lease term (in years)	4 years 10 months 24 days	4 years 10 months 24 days	5 years
Weighted-average discount rate	3.18%	3.21%	2.75%

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Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2024	$ 1,124
2025	3,097
2026	2,916
2027	2,687
2028	2,076
Thereafter	4,851
Total lease payments	16,751
Less imputed interest	(1,878)
Total lease liability	$ 14,873	$ 14,615	$ 14,503

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Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease, Cost [Abstract]
Operating lease cost	$ 885	$ 870	$ 2,553	$ 2,448
Short-term lease cost	23	24	89	51
Variable lease cost	216	163	572	577
Total lease cost	1,124	1,057	3,214	3,076
Income from subleases	(110)	(94)	(317)	(281)
Net lease cost	$ 1,014	$ 963	$ 2,897	$ 2,795

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Leases - Summary of Operating Lease Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating cash flows from operating leases	$ 2,502	$ 2,414

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Derivatives - Schedule of Derivative Instruments (Details) - Fair Value Hedging - Designated As Hedging Instrument - Interest Rate Swap Agreements - Other Liabilities - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Derivative [Line Items]
Derivative, Weighted Average Remaining Maturity (Years)	4 years 7 months 6 days	5 years 3 months 18 days
Derivative Liability, Notional Amount	$ 12,662	$ 12,976
Derivative Liability, Estimated Value	$ (1,755)	$ (2,217)

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Derivatives - Summary of Derivative Instruments, Gain (Loss) (Details) - Fair Value Hedging - Interest Rate Swap Agreements - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative [Line Items]
Gain (Loss) on Derivative	$ (539)	$ 226	$ (364)	$ 264
Gain (Loss) on Hedged Item	$ 539	$ (226)	$ 364	$ (264)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest and fees on loans	Interest and fees on loans	Interest and fees on loans	Interest and fees on loans

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Derivatives - Summary of Hedged Instrument (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Hedged Instruments [Abstract]
Carrying Amount of the Hedged Asset	$ 12,078
Hedged Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset	$ (585)

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Derivatives - Summary of Non Hedge Instruments (Details) - Not Designated as Hedging Instrument - Interest Rate Swap Agreements $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Other Assets
Derivative [Line Items]
Derivative, Weighted Average Remaining Maturity (Years)	4 years 2 months 12 days
Derivative Assets, Notional Amount	$ 29,389
Derivative Assets, Estimated Value	$ 2,339
Other Liabilities
Derivative [Line Items]
Derivative, Weighted Average Remaining Maturity (Years)	4 years 2 months 12 days
Derivative Liability, Notional Amount	$ 29,389
Derivative Liability, Estimated Value	$ (2,339)