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 March 31, 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 May 7, 2024, 23,896,252 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)	March 31, 2024			December 31, 2023
Assets
Cash and due from banks:
Non-interest bearing	$	81,006		$	122,871
Interest bearing		274,680			11,211
Federal funds sold		15			8,982
Cash and cash equivalents		355,701			143,064
Certificates of deposit		3,745			1,470
Investment securities:
Available-for-sale, at fair value (amortized cost of $1,342,603 and $1,363,721 at March 31, 2024 and December 31, 2023, respectively)		1,139,427			1,171,572
Held-to-maturity, at amortized cost (estimated fair value of $2,282 and $2,286 at March 31, 2024 and December 31, 2023, respectively)		2,282			2,286
Equity securities, at fair value		4,298			4,074
Loans held for sale		4,817			4,980
Loans		5,494,478			5,575,585
Less allowance for credit losses		(67,936	)		(68,675	)
Net loans		5,426,542			5,506,910
Interest receivable		37,667			35,082
Other real estate owned		1,346			1,163
Premises and equipment, net		101,666			101,396
Goodwill, net		196,461			196,461
Intangible assets, net		64,238			67,770
Bank owned life insurance		167,247			166,125
Right of use lease assets		14,318			14,306
Deferred tax asset, net		69,876			70,067
Other assets		88,615			100,068
Total assets	$	7,678,246		$	7,586,794
Liabilities and stockholders’ equity
Deposits:
Non-interest bearing	$	1,448,299		$	1,398,234
Interest bearing		4,794,637			4,725,425
Total deposits		6,242,936			6,123,659
Securities sold under agreements to repurchase		210,719			213,721
Interest payable		6,318			5,437
FHLB borrowings		238,761			263,787
Junior subordinated debentures, net		24,113			24,058
Subordinated debt, net		106,862			106,755
Lease liabilities		14,624			14,615
Other liabilities		35,961			41,558
Total liabilities		6,880,294			6,793,590
Stockholders’ equity:
Common stock ($4 par value; authorized 30,000,000 shares; issued 24,541,500 and 24,479,708 shares in 2024 and 2023, respectively; outstanding 23,888,929 and 23,827,137 shares in 2024 and 2023, respectively)		100,166			99,919
Additional paid-in capital		511,785			509,314
Retained earnings		353,694			338,662
Deferred compensation		832			2,629
Accumulated other comprehensive loss		(147,667	)		(136,427	)
Treasury stock, at cost (652,571 shares in 2024 and 652,571 shares in 2023)		(20,858	)		(20,893	)
Total stockholders’ equity		797,952			793,204
Total liabilities and stockholders’ equity	$	7,678,246		$	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
	March 31,
(In thousands, except per share data)	2024			2023
Interest income:
Interest and fees on loans	$	77,823		$	56,236
Interest on investment securities		7,405			7,127
Interest on certificates of deposit investments		20			14
Interest on federal funds sold		17			85
Interest on deposits with other financial institutions		2,407			209
Total interest income		87,672			63,671
Interest expense:
Interest on deposits		26,096			12,767
Interest on securities sold under agreements to repurchase		2,056			1,463
Interest on FHLB borrowings		2,314			4,874
Interest on other borrowings		—			9
Interest on junior subordinated debentures		542			379
Interest on subordinated debentures		1,194			988
Total interest expense		32,202			20,480
Net interest income		55,470			43,191
Provision for credit losses		(357	)		(817	)
Net interest income after provision for credit losses		55,827			44,008
Other income:
Wealth management revenues		5,322			5,514
Insurance commissions		9,213			8,480
Service charges		2,956			2,203
Securities gains (losses), net		—			(46	)
Mortgage banking revenue, net		706			150
ATM / debit card revenue		4,055			3,083
Bank owned life insurance		1,121			1,641
Other		1,105			1,454
Total other income		24,478			22,479
Other expense:
Salaries and employee benefits		30,448			26,071
Net occupancy and equipment expense		7,560			6,005
Net other real estate owned expense		(21	)		133
FDIC insurance		869			463
Amortization of intangible assets		3,497			1,522
Stationery and supplies		391			292
Legal and professional		2,449			1,690
ATM / debit card		1,191			1,223
Marketing and donations		862			654
Other		6,116			3,524
Total other expense		53,362			41,577
Income before income taxes		26,943			24,910
Income taxes		6,440			5,730
Net income	$	20,503		$	19,180
Per share data:
Basic net income per common share	$	0.86		$	0.94
Diluted net income per common share		0.86			0.93
Cash dividends declared per common share		0.23			0.23

See accompanying notes to unaudited condensed consolidated financial statements.

3

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Comprehensive Income (unaudited)

	Three months ended
	March 31,
(In thousands)	2024			2023
Net income	$	20,503		$	19,180
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, net of tax benefit (expense) of $4,225 and ($5,544) for three months ended March 31, 2024 and 2023, respectively		(11,240	)		13,573
Less: reclassification adjustment for realized gains (losses) included in net income, net of tax benefit (expense) of $0 and ($13) for three months ended March 31, 2024 and 2023, respectively		—			(33	)
Other comprehensive income (loss), net of taxes		(11,240	)		13,606
Comprehensive income	$	9,263		$	32,786

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 March 31, 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		—		—			20,503			—			—			—			20,503
Other comprehensive loss, net tax		—		—			—			—			(11,240	)		—			(11,240	)
Cash dividends on common stock (0.23/share)		—		—			(5,471	)		—			—			—			(5,471	)
Issuance of 47,580 restricted shares pursuant to 2017 stock incentive plan, net of forfeitures		191		1,401			—			—			—			—			1,592
Issuance of 5,600 common shares pursuant to 2017 stock incentive plan		22		166			—			—			—			—			188
Issuance of 8,612 common shares pursuant to the employee stock purchase plan		34		160			—			—			—			—			194
Deferred compensation		—		—			—			(2,288	)		—			35			(2,253	)
Grant of restricted units pursuant to 2017 stock incentive plan		—		1,311			—			—			—			—			1,311
Release of restricted units pursuant to 2017 stock incentive plan		—		(617	)		—			—			—			—			(617	)
Vested restricted shares/units compensation expense		—		50			—			491			—			—			541
March 31, 2024	$	100,166	$	511,785		$	353,694		$	832		$	(147,667	)	$	(20,858	)	$	797,952

5

First Mid Bancshares, Inc.

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

For the three months ended March 31, 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		—		—			19,180			—			—			—			19,180
Other comprehensive income, net tax		—		—			—			—			13,606			—			13,606
Cash dividends on common stock (.230/share)		—		—			(4,696	)		—			—			—			(4,696	)
Issuance of 55,198 restricted shares pursuant to 2017 stock incentive plan		221		1,423			—			—			—			—			1,644
Issuance of 4,350 common shares pursuant to 2017 stock incentive plan		17		103			—			—			—			—			120
Issuance of 7,963 common shares pursuant to the employee stock purchase plan		32		184			—			—			—			—			216
Purchase of 170 shares of treasury stock		—		—			—			—			—			(5	)		(5	)
Deferred compensation		—		—			—			(1,355	)		—			174			(1,181	)
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		—		53			—			254			—			—			307
March 31, 2023	$	86,636	$	428,283		$	303,768		$	963		$	(137,901	)	$	(19,884	)	$	661,865

See accompanying notes to unaudited condensed consolidated financial statements.

6

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

	Three months ended March 31,
(In thousands)	2024			2023
Cash flows from operating activities:
Net income	$	20,503		$	19,180
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		(357	)		(817	)
Depreciation, amortization and accretion, net		5,338			3,485
Change in cash surrender value of bank owned life insurance		(1,121	)		(926	)
Change in bank owned life insurance		—			(715	)
Stock-based compensation expense		606			307
Operating lease payments		(836	)		(781	)
Loss on investment securities, net		—			46
(Gain) loss on sales and write downs of other real estate owned, net		(70	)		71
Gain on sale of loans held for sale, net		(233	)		(207	)
Increase in accrued interest receivable		(2,585	)		(372	)
Increase in accrued interest payable		910			1,378
Origination of loans held for sale		(10,448	)		(12,191	)
Proceeds from sale of loans held for sale		10,844			11,737
Decrease in other assets		10,537			1,867
Decrease in other liabilities		(4,040	)		(1,757	)
Net cash provided by operating activities		29,048			20,305
Cash flows from investing activities:
Purchases of certificates of deposit investments		(2,275	)		(245	)
Proceeds from sales of securities available-for-sale		—			6,483
Proceeds from maturities of securities available-for-sale		21,621			19,250
Purchases of securities available-for-sale		(994	)		(1,063	)
Purchase of securities held-to-maturity		—			(25	)
Income increasing amortized cost of HTM securities		(11	)		—
Net decrease in loans		80,542			65,541
Purchases of premises and equipment		(1,480	)		(941	)
Proceeds from sales of other real property owned		—			734
Net cash provided by investing activities		97,403			89,734
Cash flows from financing activities:
Net increase (decrease) in deposits		119,277			(226,223	)
(Decrease) increase in repurchase agreements		(3,002	)		7,250
Proceeds from FHLB advances		—			170,000
Repayment of FHLB advances		(25,000	)		(40,000	)
Proceeds from issuance of common stock		382			336
Purchase of treasury stock		—			(5	)
Dividends paid on common stock		(5,471	)		(4,696	)
Net cash provided by (used in) financing activities		86,186			(93,338	)
Increase in cash and cash equivalents		212,637			16,701
Cash and cash equivalents at beginning of period		143,064			152,433
Cash and cash equivalents at end of period	$	355,701		$	169,134

See accompanying notes to unaudited condensed consolidated financial statements.

7

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

	Three months ended March 31,
(In thousands)	2024			2023
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	31,321		$	19,094
Income taxes		(823	)		(288	)
Supplemental disclosures of noncash investing and financing activities
Loans transferred to other real estate	$	183		$	648
Initial recognition of right-of-use assets		729			—
Initial recognition of lease liabilities		729			—

8

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 March 31, 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 March 31, 2024 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended March 31, 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.

9

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 three months ended March 31, 2024 and 2023, respectively, and 39,150 and 37,900 restricted stock units during the three months ended March 31, 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 three months ended March 31, 2024 and 2023, 8,612 shares and 7,963 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 $2,800,000, 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.

10

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 March 31, 2024 and December 31, 2023 are as follows (in thousands):

	Unrealized Losses on Securities
March 31, 2024
Net unrealized losses on securities available-for-sale	$	(203,177	)
Tax benefit		55,510
Balance at March 31, 2024	$	(147,667	)
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 months ended March 31, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
		Three months ended
		March 31,
		2024		2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities		$	—	$	(46	)	Securities (loss) gain, net
Tax effect			—		13		Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)		$	—	$	(33	)	Net reclassified amount

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

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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 months ended March 31, 2024 and 2023 were as follows:

	Three months ended
	March 31,
	2024		2023
Basic net income per common share
Available to common stockholders:
Net income	$	20,503,000	$	19,180,000
Weighted average common shares outstanding		23,872,731		20,492,254
Basic earnings per common share	$	0.86	$	0.94
Diluted net income per common share
Available to common stockholders:
Net income applicable to diluted earnings per share	$	20,503,000	$	19,180,000
Weighted average common shares outstanding		23,872,731		20,492,254
Dilutive potential common shares: restricted stock awarded		87,604		71,718
Diluted weighted average common shares outstanding		23,960,335		20,563,972
Diluted earnings per common share	$	0.86	$	0.93

There were no shares excluded when computing diluted earnings per share for the three months ended March 31, 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 March 31, 2024 and December 31, 2023 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	234,540	$	—	$	(27,220	)	$	207,320
Obligations of states and political subdivisions		335,350		84		(52,864	)		282,570
Mortgage-backed securities: GSE residential		699,921		854		(119,771	)		581,004
Other securities		72,792		—		(4,259	)		68,533
Total available-for-sale	$	1,342,603	$	938	$	(204,114	)	$	1,139,427
Held-to-maturity:
Other investments	$	2,282	$	—	$	—		$	2,282
Total held-to-maturity	$	2,282	$	—	$	—		$	2,282
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 $4,298,000 and $4,074,000 of equity securities, at fair value, as of March 31, 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 March 31, 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 months ended March 31, 2024 and 2023 (in thousands):

	Three months ended
	March 31,
	2024		2023
Gross gains	$	—	$	6
Gross losses		—		(52	)

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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 March 31, 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	$	181,730		$	25,590		$	—		$	—		$	207,320
Obligations of state and political subdivisions		21,240			102,416			157,672			1,242			282,570
Mortgage-backed securities: GSE residential		2,280			6,030			33,981			538,713			581,004
Other securities		27,942			39,838			753			—			68,533
Total available-for-sale investments	$	233,192		$	173,874		$	192,406		$	539,955		$	1,139,427
Weighted average yield		1.75	%		2.62	%		2.25	%		1.82	%		2.00	%
Full tax-equivalent yield		1.75	%		2.63	%		2.22	%		1.84	%		2.00	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,282		$	2,282
Total held-to-maturity	$	—		$	—		$	—		$	2,282		$	2,282
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 March 31, 2024.

Investment securities carried at approximately $820 million and $831 million at March 31, 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 March 31, 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
March 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,295	$	—		$	206,025	$	(27,220	)	$	207,320	$	(27,220	)
Obligations of states and political subdivisions		27,302		(324	)		248,168		(52,540	)		275,470		(52,864	)
Mortgage-backed securities: GSE residential		5,773		(132	)		545,899		(119,639	)		551,672		(119,771	)
Other securities		5,337		(413	)		57,446		(3,846	)		62,783		(4,259	)
Total	$	39,707	$	(869	)	$	1,057,538	$	(203,245	)	$	1,097,245	$	(204,114	)
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 March 31, 2024 there were six hundred twenty-five available-for-sale securities with a fair value of $206.0 million and unrealized losses of $27.2 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 March 31, 2024, there were two hundred fifty-five obligations of states and political subdivisions with a fair value of $248.2 million and unrealized losses of $52.5 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 March 31, 2024, there were two hundred sixty-three mortgage-backed securities with a fair value of $545.9 million and unrealized losses of $119.6 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 March 31, 2024, there were forty-two other securities with a fair value of $57.4 million and unrealized losses of $3.8 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 March 31, 2024 and December 31, 2023 follows (in thousands):

	March 31, 2024		December 31, 2023
Construction and land development	$	188,662	$	207,033
Agricultural real estate		389,691		392,265
1-4 family residential properties		525,532		549,843
Multifamily residential properties		315,024		321,537
Commercial real estate		2,424,919		2,416,294
Loans secured by real estate		3,843,828		3,886,972
Agricultural loans		213,171		196,202
Commercial and industrial loans		1,234,776		1,273,637
Consumer loans		80,514		92,142
All other loans		175,318		184,609
Total gross loans		5,547,607		5,633,562
Less: loans held for sale		4,817		4,980
		5,542,790		5,628,582
Less:
Net deferred loan fees, premiums and discounts		48,312		52,997
Allowance for credit losses		67,936		68,675
Net loans	$	5,426,542	$	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 $31.3 million and $29.9 million at March 31, 2024 and December 31, 2023, respectively.

15

Most of the Company’s business activities are with customers located near the Company's branch locations in Illinois, Missouri, Texas, and Wisconsin. At March 31, 2024, the Company’s loan portfolio included $602.9 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $488.5 million was concentrated in corn and other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $14.4 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 $16.0 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. The Company also has $1.06 billion of loans to lessors of non-residential buildings, and $549.3 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.

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.

16

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,

17

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 staffing shortages and supply chain disruptions cause risk in this segment, most projects are associated with financially strong borrowers. The qualitative factors for this segment were increased due to higher levels of loans compared to the Company's internal policy limits

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.

1- 4 Family Residential Properties 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.

Commercial Real Estate Loans. This segment includes the Company's largest balances and the largest allowance for credit losses. The qualitative factors on non-owner occupied loans for this segment were increased due to the economic uncertainty and rate repricing risks in today's market along with the level of balances compared to the Company's internal policy limits.

Agricultural Loans. Losses in this segment are very low. Commodity prices have been volatile and yield expectations have been lowered due to the lack of rain. The qualitative factors of this segment were increased due to this higher level of risk.

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

Consumer Loans. This segment is the smallest portion of the Company's loan portfolio. This segment is anticipated to be impacted by any recession that may appear. In addition, the risk has increased for cash flow challenges for any borrower who have student loans that have been or will soon be returned to payments. The qualitative factors for this segment were not changed on a net basis in the period. Higher risk due to macro-economic conditions were offset by a decline in the severity of past dues for the loan segment.

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.

18

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 months ended March 31, 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 March 31, 2024
Beginning balance	$	2,918		$	1,366		$	4,220		$	31,758	$	705	$	25,450		$	2,258	$	68,675
Initial allowance on loans purchased with credit deterioration		—			—			—			—		—		—			—		—
Provision for credit loss expense		(217	)		(8	)		(424	)		618		125		(609	)		158		(357	)
Loans charged off		—			—			67			—		52		274			426		819
Recoveries collected		—			—			49			161		—		64			163		437
Ending balance	$	2,701		$	1,358		$	3,778		$	32,537	$	778	$	24,631		$	2,153	$	67,936

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three months ended March 31, 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 March 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		—		—			—			—			—			—		—		—
Provision for credit loss expense		176		(29	)		(306	)		(834	)		(8	)		91		93		(817	)
Loans charged off		—		—			40			—			—			13		427		480
Recoveries collected		—		—			24			4			3			256		140		427
Ending balance	$	2,426	$	1,404		$	3,420		$	27,327		$	580		$	21,142	$	1,924	$	58,223
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.

19

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 March 31, 2024 (in thousands):

	Collateral								Allowance
	Real Estate		Business Assets		Other		Total		for Credit Losses
Construction and land development	$	406	$	—	$	—	$	406	$	175
1-4 family residential properties		1,174		—		—		1,174		—
Multifamily residential properties		1,066		—		—		1,066		—
Commercial real estate		8,349		—		—		8,349		133
Loans secured by real estate		10,995		—		—		10,995		308
Agricultural loans		—		—		—		—		—
Commercial and industrial loans		—		506		—		506		—
Consumer loans		—		—		—		—		—
Total loans	$	10,995	$	506	$	—	$	11,501	$	308

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.

20

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 March 31, 2024 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2024		2023		2022		2021		2020		Prior		Loans		Total
March 31, 2024
Construction and land development loans
Pass	$	3,584	$	81,753	$	56,302	$	16,509	$	5,781	$	22,499	$	—	$	186,428
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		423		—		423
Total	$	3,584	$	81,753	$	56,302	$	16,509	$	5,781	$	22,922	$	—	$	186,851
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	8,930	$	18,867	$	162,999	$	56,265	$	52,598	$	83,981	$	—	$	383,640
Special mention		1,170		202		—		628		—		1,864		—		3,864
Substandard		—		—		—		367		—		1,070		—		1,437
Total	$	10,100	$	19,069	$	162,999	$	57,260	$	52,598	$	86,915	$	—	$	388,941
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	18,806	$	58,463	$	95,956	$	94,556	$	78,221	$	83,227	$	70,050	$	499,279
Special mention		—		—		853		3,143		—		3,847		—		7,843
Substandard		26		113		920		514		553		8,817		576		11,519
Total	$	18,832	$	58,576	$	97,729	$	98,213	$	78,774	$	95,891	$	70,626	$	518,641
Current period gross writeoffs	$	—	$	36	$	—	$	—	$	—	$	31	$	—	$	67
Commercial real estate loans
Pass	$	9,482	$	206,109	$	706,392	$	570,053	$	321,198	$	865,221	$	—	$	2,678,455
Special mention		10		3,634		2,854		1,716		824		8,647		—		17,685
Substandard		—		—		3,761		450		10		8,489		—		12,710
Total	$	9,492	$	209,743	$	713,007	$	572,219	$	322,032	$	882,357	$	—	$	2,708,850
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural loans
Pass	$	38,758	$	121,171	$	30,478	$	16,192	$	3,396	$	1,852	$	—	$	211,847
Special mention		—		11		—		—		—		748		—		759
Substandard		—		221		368		—		6		16		—		611
Total	$	38,758	$	121,403	$	30,846	$	16,192	$	3,402	$	2,616	$	—	$	213,217
Current period gross writeoffs	$	—	$	—	$	—	$	52	$	—	$	—	$	—	$	52
Commercial and industrial loans
Pass	$	33,234	$	278,618	$	305,634	$	233,432	$	139,860	$	375,188	$	—	$	1,365,966
Special mention		103		1,061		1,528		7,073		1,359		24,394		—		35,519
Substandard		—		—		597		351		44		749		—		1,741
Total	$	33,337	$	279,679	$	307,759	$	240,856	$	141,263	$	400,331	$	—	$	1,403,226
Current period gross writeoffs	$	—	$	—	$	—	$	273	$	—	$	1	$	—	$	274
Consumer loans
Pass	$	1,612	$	8,161	$	36,304	$	17,758	$	8,383	$	6,473	$	—	$	78,691
Special mention		—		—		23		—		—		—		—		23
Substandard		—		50		338		241		141		85		—		855
Total	$	1,612	$	8,211	$	36,665	$	17,999	$	8,524	$	6,558	$	—	$	79,569
Current period gross writeoffs	$	—	$	3	$	51	$	81	$	—	$	291	$	—	$	426
Total loans
Pass	$	114,406	$	773,142	$	1,394,065	$	1,004,765	$	609,437	$	1,438,441	$	70,050	$	5,404,306
Special mention		1,283		4,908		5,258		12,560		2,183		39,500		—		65,693
Substandard		26		384		5,984		1,923		754		19,649		576		29,296
Total	$	115,715	$	778,434	$	1,405,307	$	1,019,248	$	612,374	$	1,497,590	$	70,626	$	5,499,295
Current period gross writeoffs	$	—	$	39	$	51	$	406	$	—	$	323	$	—	$	819

21

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

22

The following table presents the Company’s loan portfolio aging analysis at March 31, 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
March 31, 2024
Construction and land development	$	—	$	—	$	450	$	450	$	186,401	$	186,851	$	—
Agricultural real estate		—		—		1		1		388,940		388,941		—
1-4 family residential properties		1,965		1,227		1,179		4,371		514,270		518,641		—
Multifamily residential properties		—		—		551		551		312,207		312,758		—
Commercial real estate		1,784		4,319		3,852		9,955		2,386,137		2,396,092		—
Loans secured by real estate		3,749		5,546		6,033		15,328		3,787,955		3,803,283		—
Agricultural loans		—		25		596		621		212,596		213,217		—
Commercial and industrial loans		228		261		889		1,378		1,226,528		1,227,906		—
Consumer loans		245		31		216		492		79,077		79,569		—
All other loans		—		—		—		—		175,320		175,320		—
Total loans	$	4,222	$	5,863	$	7,734	$	17,819	$	5,481,476	$	5,499,295	$	—
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		23,800,446		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.

23

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 March 31, 2024 and December 31, 2023 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

	March 31, 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	$	—	$	—	$	—	$	—
Agricultural real estate		1,135		1,135		1,146		1,146
1-4 family residential properties		4,705		4,964		4,679		4,940
Multifamily residential properties		—		—		—		—
Commercial real estate		9,463		10,105		10,237		10,237
Loans secured by real estate		15,303		16,204		16,062		16,323
Agricultural loans		596		596		—		—
Commercial and industrial loans		1,501		1,501		1,931		1,931
Consumer loans		492		492		578		578
All other loans		—		—		—		—
Total loans	$	17,892	$	18,793	$	18,571	$	18,832

Interest income that would have been recorded under the original terms of such nonaccrual loans totaled $267,000 and $79,000 for the three months ended March 31, 2024 and 2023, respectively.

Loan Modification Disclosures Pursuant to ASU 2022-02

The following table shows the amortized cost of loans at March 31, 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
March 31, 2024
Agricultural real estate	$	—	$	325	$	—	$	—		0.01	%
1-4 family residential properties		—		52		795		—		0.02	%
Commercial real estate		—		719		126		532		0.03	%
Loans secured by real estate		—		1,096		921		532		0.05	%
Commercial and industrial loans		—		185		196		—		0.01	%
Consumer loans		—		6		12		—		—	%
Total	$	—	$	1,287	$	1,129	$	532		0.05	%
March 31, 2023
Agricultural real estate	$	—	$	347	$	—	$	—		0.09	%
1-4 family residential properties		—		62		880		—		0.22	%
Commercial real estate		—		826		91		—		0.05	%
Loans secured by real estate		—		1,235		971		—		0.07	%
Commercial and industrial loans		—		421		319		—		0.07	%
Consumer loans		—		8		45		—		0.06	%
Total	$	—	$	1,664	$	1,335	$	—		0.06	%

24

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 March 31, 2024 and 2023.

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
March 31, 2024
Commercial real estate	$	—	$	—	$	—	$	—
Loans secured by real estate		—		—		—		—
Total loans	$	—	$	—	$	—	$	—
March 31, 2023
Commercial real estate	$	—	$	55	$	—	$	55
Loans secured by real estate		—		55		—		55
Total loans	$	—	$	55	$	—	$	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 March 31, 2024 and 2023.

	Weighted Average			Weighted Average
	Interest Rate			Term Extension
	Reduction			(in months)
March 31, 2024
Commercial and industrial loans		—	%		6.59
Consumer loans		—	%		—
		—	%		6.59
March 31, 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 three months ended March 31, 2024 or for the three months ended March 31, 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

25

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 March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024				December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization	$	200,221	$	3,760	$	200,221	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		79,945		37,520		79,945		34,966
Other intangibles		26,552		11,198		26,552		10,620
	$	309,733	$	55,493	$	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 jr 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 June 30, 2023, goodwill of $6 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 March 31, 2024, March 31, 2023 and December 31, 2023 (in thousands):

	March 31, 2024			March 31, 2023			December 31, 2023
Beginning balance	$	6,859		$	331		$	331
Mortgage servicing rights acquired during period		—			—			7,070
Adjustment to valuation reserve		(33	)		—			(8	)
Mortgage servicing rights amortized		(364	)		(17	)		(524	)
Interest only strip		(3	)		(2	)		(10	)
Ending balance	$	6,459		$	312		$	6,859

26

Total amortization expense for three months ended March 31, 2024 and 2023 was as follows (in thousands):

	Three months ended
	March 31,
	2024		2023
Core deposit intangibles	$	2,554	$	1,049
Customer list intangibles		579		456
Mortgage servicing rights		364		17
	$	3,497	$	1,522

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 - 03/31/24	$	3,497
Estimated amortization expense:
For period 04/01/24 - 12/31/24		9,982
For year ended 12/31/25		12,158
For year ended 12/31/26		10,570
For year ended 12/31/27		9,351
For year ended 12/31/28		8,183

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 May 31, 2023 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 $210.7 million at March 31, 2024, an decrease of $3.0 million from $213.7 million at December 31, 2023. All the transactions have overnight maturities with a weighted average rate of 3.13%.

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):

	March 31, 2024		December 31, 2023
US Treasury securities and obligations of U.S. government corporations and agencies	$	57,872	$	46,544
Mortgage-backed securities: GSE: residential		152,847		167,177
Total	$	210,719	$	213,721

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

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	1.5	4.69%	May 10, 2024
	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
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.67%	June 15, 2028
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.95%	June 29, 2028
	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.

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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 March 31, 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)
March 31, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	207,320	$	—	$	207,320	$	—
Obligations of states and political subdivisions		282,570		—		282,570		—
Mortgage-backed securities		581,004		—		581,004		—
Other securities		68,533		—		62,568		5,965
Total available-for-sale securities		1,139,427		—		1,133,462		5,965
Equity securities		4,298		4,298		—		—
Loans held for sale		4,817		—		4,817		—
Derivative assets: interest rate swaps		3,539		—		3,539		—
Total assets	$	1,152,081	$	4,298	$	1,141,818	$	5,965
Derivative liabilities: interest rate swaps	$	2,435	$	—	$	2,435	$	—
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 months ended March 31, 2024 and 2023 is summarized as follows (in thousands):

	Three months ended March 31, 2024
	Other			Total
Beginning balance	$	6,163		$	6,163
Transfers into Level 3		1			1
Maturities		(199	)		(199	)
Ending balance	$	5,965		$	5,965
	Three months ended March 31, 2023
	Other			Total
Beginning balance	$	10,000		$	10,000
Transfers into Level 3		10			10
Ending balance	$	10,010		$	10,010

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.

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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 March 31, 2024 was $1.3 million and a fair value of $1.0 million resulting in specific loss exposures of $324,000.

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 March 31, 2024 was $1.3 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 $0.

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 March 31, 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)
March 31, 2024
Collateral dependent loans	$	985	$	—	$	—	$	985
Foreclosed assets held for sale		—		—		—		—
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 March 31, 2024 and December 31, 2023.

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	985	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	20%
Foreclosed assets held for sale		—	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

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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 March 31, 2024 and December 31, 2023 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2024
Financial assets
Cash and due from banks	$	355,686	$	355,686	$	355,686	$	—	$	—
Federal funds sold		15		15		15		—		—
Certificates of deposit investments		3,745		3,745		—		3,745		—
Available-for-sale securities		1,139,427		1,139,427		—		1,133,462		5,965
Held-to-maturity securities		2,282		2,282		2,282		—		—
Equity securities		4,298		4,298		4,298		—		—
Loans held for sale		4,817		4,817		—		4,817		—
Loans net of allowance for credit losses		5,426,542		5,061,373		—		—		5,061,373
Interest receivable		37,667		37,667		—		37,667		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		8,740		8,740		—		8,740		—
Financial liabilities
Deposits	$	6,242,936	$	6,165,836	$	—	$	5,235,110	$	930,726
Securities sold under agreements to repurchase		210,719		210,719		—		210,719		—
Interest payable		6,318		6,318		—		6,318		—
Federal Home Loan Bank borrowings		238,761		234,678		—		234,678		—
Subordinated debt, net		106,862		102,398		—		102,398		—
Junior subordinated debentures, net		24,113		21,408		—		21,408		—
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

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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

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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

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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
	March 31,
	2023
Net interest income	$	57,640
Provision for credit losses		(402	)
Non-interest income		25,664
Non-interest expense		55,808
Income before taxes		27,898
Income tax expense		6,395
Net income	$	21,503
Earnings per share
Basic	$	0.90
Diluted	$	0.90
Basic weighted average shares o/s		23,782,476
Diluted weighted average shares o/s		23,854,194

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 $2.2 million and $93,000, respectively, during the three months ended March 31, 2024 and March 31, 2023.

Note 9 -- Leases

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of March 31, 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.

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

	March 31, 2024			March 31, 2023			December 31, 2023
Operating lease right-of-use assets	$	14,318		$	15,092		$	14,306
Operating lease liabilities		14,624			15,353			14,615
Weighted-average remaining lease term (in years)		4.8			5.6		4.9
Weighted-average discount rate		3.22	%		2.68	%		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	$	2,444
2025		2,686
2026		2,509
2027		2,287
2028		1,693
Thereafter		4,818
Total lease payments		16,437
Less imputed interest		(1,813	)
Total lease liability	$	14,624

The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows (in thousands):

	Three months ended
	March 31,
	2024			2023
Operating lease cost	$	846		$	753
Short-term lease cost		35			30
Variable lease cost		138			223
Total lease cost		1,019			1,006
Income from subleases		(104	)		(94	)
Net lease cost	$	915		$	912

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):

	March 31, 2024		March 31, 2023
Operating cash flows from operating leases	$	836	$	781

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.

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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 March 31, 2024 and December 31, 2023 (in thousands):

	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
March 31, 2024
Fair value hedges:
Interest rate swap agreements	Other liabilities	5.1	$	12,910	$	(2,435	)
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 months ended March 31, 2024 and 2023 were as follows (in thousands):

		Three months ended
		March 31,
Derivative	Location of Gain (Loss) on Derivatives	2024		2023
Interest rate swap agreements	Interest income on loans	$	155	$	(325	)

		Three months ended
		March 31,
Derivative	Location of Gain (Loss) on Hedged Items	2024			2023
Interest rate swap agreements	Interest income on loans	$	(155	)	$	325

As of March 31, 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	$	11,807	$	(1,104	)

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 three months ended March 31, 2024 (dollars in thousands):

March 31, 2024	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
Interest rate swap agreements	Other assets	4.8	$	30,280	$	3,539
Interest rate swap agreements	Other liabilities	4.8		30,280		(3,539	)

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 months ended March 31, 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

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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 $20.5 million and $19.2 million for the three months ended March 31, 2024 and 2023, respectively. Diluted net income per common share was $0.86 and $0.93 for the three months ended March 31, 2024 and 2023, respectively.

The following table shows the Company’s annualized performance ratios for three months ended March 31, 2024 and 2023, compared to the performance ratios for the year ended December 31, 2023:

	Three months ended						Year ended
	March 31, 2024			March 31, 2023			December 31, 2023
Return on average assets		1.07	%		1.15	%		0.97	%
Return on average common equity		10.37	%		12.11	%		10.10	%
Average equity to average assets		10.35	%		9.47	%		9.61	%

Total assets were $7.7 billion at March 31, 2024, compared to $7.6 billion as of December 31, 2023. From December 31, 2023 to March 31, 2024, cash and cash equivalents increased $212.6 million, net loan balances decreased $80.4 million and investment securities decreased $31.9 million. Net loan balances were $5.43 billion at March 31, 2024 compared to $5.51 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 3.25% for the three months ended March 31, 2024, up from 2.94% 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 $55.5 million compared to net interest income of $43.2 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 $24.5 million increased $2.0 million or 8.9% from $22.5 million for the same period last year. The increase in non-interest income resulted primarily from an increase in insurance commissions and income from Blackhawk Bank partially offset by a decrease in wealth management revenues and bank owned life insurance income.

Total non-interest expense of $53.4 million increase $11.8 million or 28.3% from $41.6 million for the same period last year. The increase was primarily due to the acquisition of Blackhawk Bank and the related amortization of intangibles and increased size of the bank.

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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
		March 31, 2024
Net interest income		$	12,279
Provision for credit losses			(460	)
Other income, including securities transactions			1,999
Other expenses			(11,785	)
Income taxes			(710	)
Increase (decrease) in net income		$	1,323

Credit quality is an area of importance to the Company. Total nonperforming loans were $20.1 million at March 31, 2024, compared to $15.2 million at March 31, 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 $1.4 million at March 31, 2024 compared to $4.1 million at March 31, 2023 and $1.2 million at December 31, 2023.

The Company’s provision for credit losses for the three months ended March 31, 2024 and 2023 was ($357,000) and ($817,000), respectively. Total loans past due 30 days or more were 0.32% of loans at March 31, 2024 compared to 0.21% at March 31, 2023, and 0.26% of loans at December 31, 2023. Loans secured by both commercial and residential real estate comprised approximately 69.3% of the loan portfolio as of March 31, 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 March 31, 2024 and 2023 and December 31, 2023 was 12.46%, 12.88% and 12.02%, respectively. The Company’s total capital to risk weighted assets ratio calculated under the regulatory risk-based capital requirements at March 31, 2024 and 2023, and December 31, 2023 was 15.35%, 15.74% 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 for the period increasing equity and a decrease in risk weighted assets related to loans and other assets.

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 March 31, 2024 and 2023, were $1.3 billion and $1.2 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 $869,000 and $463,000 for the assessment during the first three 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

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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 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.

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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 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 May 31, 2023 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.

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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 $616,000 and $755,000 for 2024 and 2023, respectively were 3.20% and 2.89% at March 31, 2024 and 2023, respectively.

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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 months ended March 31, 2024 and 2023 in the following table (dollars in thousands):

	Three months ended March 31, 2024								Three months ended March 31, 2023
	Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Interest-bearing deposits with other financial institutions	$	173,365		$	2,407		5.58	%	$	15,688		$	209		5.40	%
Federal funds sold		1,094			17		6.18	%		7,753			85		4.44	%
Certificates of deposit		1,545			20		5.15	%		1,789			14		3.09	%
Investment securities:
Taxable		904,451			5,470		2.42	%		957,951			5,163		2.16	%
Tax-exempt (1)		280,215			2,450		3.50	%		280,828			2,486		3.54	%
Loans net of unearned income (TE) (2)		5,524,185			77,924		5.67	%		4,788,255			56,469		4.78	%
Total earning assets		6,884,855			88,288		5.16	%		6,052,264			64,426		4.32	%
Cash and due from banks		102,922								135,145
Premises and equipment		101,530								90,345
Other assets		624,205								475,022
Allowance for credit losses		(69,059	)							(59,558	)
Total assets	$	7,644,453							$	6,693,218
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits	$	3,036,837		$	16,612		2.20	%	$	2,504,073		$	9,655		1.56	%
Savings deposits		707,849			178		0.10	%		640,347			191		0.12	%
Time deposits		1,028,045			9,306		3.64	%		699,328			2,921		1.69	%
Total interest-bearing deposits		4,772,731			26,096		2.20	%		3,843,748			12,767		1.35	%
Securities sold under agreements to repurchase		264,587			2,056		3.13	%		231,012			1,463		2.57	%
FHLB advances		258,554			2,314		3.60	%		540,156			4,874		3.66	%
Federal funds purchased		—			—		—	%		778			9		4.69	%
Subordinated debt		106,791			1,194		4.50	%		94,567			987		4.23	%
Junior subordinated debentures		24,084			542		9.05	%		19,385			379		7.93	%
Total borrowings		654,016			6,106		3.75	%		885,898			7,712		3.53	%
Total interest-bearing liabilities		5,426,747			32,202		2.39	%		4,729,646			20,479		1.76	%
Non interest-bearing demand deposits		1,367,798					1.91	%		1,273,527					1.38	%
Other liabilities		59,056								56,456
Stockholders' equity		790,852								633,589
Total liabilities and equity	$	7,644,453							$	6,693,218
Net interest income				$	56,086							$	43,947
Net interest spread							2.77	%							2.56	%
Impact of non interest-bearing funds							0.48	%							0.38	%
TE net yield on interest-earning assets							3.25	%							2.94	%

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 months ended March 31, 2024, compared to the same period in 2023 (in thousands):

	Three months ended March 31, 2024 compared to 2023 Increase / (Decrease)
	Total
	Change			Volume (1)			Rate (1)
Earning assets:
Interest-bearing deposits	$	2,198		$	2,191		$	7
Federal funds sold		(68	)		(232	)		164
Certificates of deposit investments		6			(12	)		18
Investment securities:
Taxable		307			(1,482	)		1,789
Tax-exempt (2)		(36	)		(5	)		(31	)
Loans (2) (3)		21,455			9,702			11,753
Total interest income	$	23,862		$	10,162		$	13,700
Interest-bearing liabilities:
Interest-bearing deposits
Demand deposits	$	6,957		$	2,376		$	4,581
Savings deposits		(13	)		94			(107	)
Time deposits		6,385			1,848			4,537
Securities sold under agreements to repurchase		593			237			356
FHLB advances		(2,560	)		(2,482	)		(78	)
Federal funds purchased		(9	)		(5	)		(4	)
Subordinated debt		207			139			68
Junior subordinated debentures		163			103			60
Total interest expense		11,723			2,310			9,413
Net interest income	$	12,139		$	7,852		$	4,287

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 $12.1 million, or 27.6%, to $56.1 million for the three months ended March 31, 2024, from $43.9 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 three months ended March 31, 2024, average earning assets increased $832.6 million, or 13.8%, and average interest-bearing liabilities increased $697.1 million or 14.7% 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 $157.7 million or 1005.1%.

•Average federal funds sold decreased $6.7 million or 85.9%.

•Average certificates of deposits investments decreased $244,000 or 13.6%.

•Average loans increased by $735.9 million or 15.4%.

•Average securities decreased by $54.1 million or 4.4%.

•Average interest-bearing customer deposits increased by $929.0 million or 24.2%.

•Average securities sold under agreements to repurchase increased by $33.6 million or 14.5%.

•Average borrowings and other debt decreased by $265.5 million or 40.5%.

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•Net interest margin increased to 3.25% for the first three months of 2024 from 2.94% for the first three months of 2023.

Provision for Loan Losses

The provision for credit losses for the three months ended March 31, 2024 and 2023 was ($357,000) and ($817,000), respectively. Net charge offs were $382,000 for the three months ended March 31, 2024, compared to net charge offs of $53,000 for March 31, 2023. Nonperforming loans were $20.1 million and $15.2 million as of March 31, 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 months ended March 31, 2024 and 2023 (in thousands):

	Three months ended March 31,
	2024		2023			$ Change			% Change
Wealth management revenues	$	5,322	$	5,514		$	(192	)		-3.5	%
Insurance commissions		9,213		8,480			733			8.6	%
Service charges		2,956		2,203			753			34.2	%
Security gains (losses), net		—		(46	)		46			-100.0	%
Mortgage banking revenue, net		706		150			556			370.7	%
ATM / debit card revenue		4,055		3,083			972			31.5	%
Bank owned life insurance		1,121		1,641			(520	)		-31.7	%
Other		1,105		1,454			(349	)		-24.0	%
Total other income	$	24,478	$	22,479		$	1,999			8.9	%

Following are explanations of the changes in these other income categories for the three months ended March 31, 2024 compared to the same period in 2023:

•Wealth management revenues decreased for the three month period due to less agricultural service fees partially offset by increased brokerage and trust fees.

•Insurance commissions increased primarily due to an increase in commission income partially offset by a decrease in contingency income during 2024 compared to the same period last year.

•Fees from service charges increased during the first three months of 2024 primarily due to the acquisition of Blackhawk Bank.

•Net losses from the sale of securities during 2024 were $0 and net losses in 2023 were $46,000. The Company did not sell any securities during the quarter ended March 31, 2024.

•The increase in mortgage banking income was due to an increase from loans sold in the secondary market and the acquisition of Blackhawk Bank.

•$10.6 million (representing 77 loans) for the three months ended March 31, 2024.

•$11.5 million (representing 75 loans) for the three months ended March 31, 2023.

First Mid Bank generally releases the servicing rights on loans sold into the secondary market.

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

•Bank owned life insurance income decreased approximately $520,000 during the first three months of 2024 compared to the same period in 2023 primarily due to a claim payout in 2023.

•Other income decreased primarily due to 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 months ended March 31, 2024 and 2023 (dollars in thousands):

	Three months ended March 31,
	2024			2023		$ Change			% Change
Salaries and employee benefits	$	30,448		$	26,071	$	4,377			16.8	%
Net occupancy and equipment expense		7,560			6,005		1,555			25.9	%
Net other real estate owned expense		(21	)		133		(154	)		-115.8	%
FDIC insurance		869			463		406			87.7	%
Amortization of intangible assets		3,497			1,522		1,975			129.8	%
Stationery and supplies		391			292		99			33.9	%
Legal and professional		2,449			1,690		759			44.9	%
Marketing and donations		862			654		208			31.8	%
ATM/debit card expense		1,191			1,223		(32	)		-2.6	%
Other operating expenses		6,116			3,524		2,592			73.6	%
Total other expense	$	53,362		$	41,577	$	11,785			28.3	%

Following are explanations for the changes in these other expense categories for the three months ended March 31, 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 partially offset by the Company's efficiency improvement efforts. There were 1,188 and 988 full-time equivalent employees at March 31, 2024 and 2023, respectively.

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

•The decrease in net other real estate owned expense was primarily due to properties sold during 2023 that no longer have ongoing expense during 2024 and no write downs of other real estate owned during the period.

•Expense for amortization of intangible assets increased for the three months ended March 31, 2024 compared to 2023. Core deposit intangibles and mortgage servicing rights increased due to the acquisition of Blackhawk Bank.

•The increase in other operating expenses during the first three months of 2024 was primarily due to nonrecurring costs from the acquisition of Blackhawk Bank during the period.

•On a net basis, all other categories of operating expenses increased during the period compared to last year primarily due to the the acquisition of Blackhawk Bank.

Income Taxes

Total income tax expense amounted to $6.4 million (23.9% effective tax rate) for the three months ended March 31, 2024, compared to $5.7 million (23.0% effective tax rate) for the same period in 2023. The increase in effective rate is related to a decrease in investment tax credits while pre-tax net income increased.

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

45

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 March 31, 2024 and December 31, 2023 (dollars in thousands)

	March 31, 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	$	234,540		1.88	%	$	237,875		1.28	%
Obligations of states and political subdivisions		335,350		2.31	%		337,835		2.31	%
Mortgage-backed securities: GSE residential		699,921		1.91	%		714,216		1.91	%
Other securities		75,074		3.67	%		76,081		3.65	%
Total securities	$	1,344,885		1.99	%	$	1,366,007		2.00	%

At March 31, 2024, the Company’s investment portfolio decreased by $21.1 million from December 31, 2023 primarily due to 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 March 31, 2024 for investment securities (in thousands):

					Average Credit Rating of Fair Value at March 31, 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	$	234,540	$	207,320	$	202,190	$	1,295	$	1,891	$	—	$	1,944	$	—
Obligations of state and political subdivisions		335,350		282,570		51,208		180,940		47,726		—		—		2,696
Mortgage-backed securities (2)		699,921		581,004		—		—		—		—		—		581,004
Other securities		72,792		68,533		3,351		8,029		20,731		3,896		—		32,526
Total available-for-sale	$	1,342,603	$	1,139,427	$	256,749	$	190,264	$	70,348	$	3,896	$	1,944	$	616,226
Held-to-maturity:
Other securities		2,282		2,282		—		—		—		—		—		2,282
Total held-to-maturity	$	2,282	$	2,282	$	—	$	—	$	—	$	—	$	—	$	2,282
Equity securities:
Federal Agricultural Mtg Corp		85		528		—		—		—		—		—		528
Midwest Independent BankersBank		150		202		—		—		—		—		—		202
Equalize Community Development Fund		3,568		3,568		—		—		—		—		—		3,568
Total equity securities	$	3,803	$	4,298	$	—	$	—	$	—	$	—	$	—	$	4,298

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.

46

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 March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024					December 31, 2023
	Amortized Cost		% Outstanding Loans			Amortized Cost		% Outstanding Loans
Construction and land development	$	186,851		3.4	%	$	205,077		3.7	%
Agricultural real estate		388,941		7.1	%		391,132		7.0	%
1-4 family residential properties		518,641		9.4	%		542,469		9.7	%
Multifamily residential properties		312,758		5.7	%		319,129		5.7	%
Commercial real estate		2,396,092		43.7	%		2,384,704		42.8	%
Loans secured by real estate		3,803,283		69.3	%		3,842,511		68.9	%
Agricultural loans		213,217		3.9	%		196,272		3.5	%
Commercial and industrial loans		1,227,906		22.3	%		1,266,159		22.7	%
Consumer loans		79,569		1.4	%		91,014		1.6	%
All other loans		175,320		3.1	%		184,609		3.3	%
Total loans	$	5,499,295		100.0	%	$	5,580,565		100.0	%

Loan balances decreased $81.3 million, or (1.5%). The decrease was primarily due to seasonal pay downs in commercial and industrial loans as well as loan demand partially offset by an increase in agricultural loans due to seasonal demands. The balance of real estate loans held for sale, included in the balances shown above, amounted to $4.8 million and $5.0 million as of March 31, 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.

The Company 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 total risk-based capital for the periods shown above. At March 31, 2024 and December 31, 2023, the Company did have industry loan concentrations that exceeded 25% of total risk-based capital in the following industries (dollars in thousands):

	March 31, 2024					December 31, 2023
	Principal balance		% Outstanding  Loans			Principal balance		% Outstanding Loans
Other grain farming	$	488,462		8.88	%	$	472,456		8.47	%
Lessors of non-residential buildings		1,055,105		19.19	%		1,086,152		19.46	%
Lessors of residential buildings and dwellings		549,284		9.99	%		541,858		9.71	%

The Company had no further industry loan concentrations in excess of 25% of total risk-based capital.

47

The following table presents the balance of loans outstanding as of March 31, 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	$	37,240	$	58,910	$	90,701	$	186,851
Agricultural real estate		12,284		141,735		234,922		388,941
1-4 family residential properties		23,462		115,959		379,220		518,641
Multifamily residential properties		35,947		221,099		55,712		312,758
Commercial real estate		197,756		1,362,879		835,457		2,396,092
Loans secured by real estate		306,689		1,900,582		1,596,012		3,803,283
Agricultural loans		158,945		49,677		4,595		213,217
Commercial and industrial loans		338,442		617,239		272,225		1,227,906
Consumer loans		3,109		71,781		4,679		79,569
All other loans		25,512		21,234		128,574		175,320
Total loans	$	832,697	$	2,660,513	$	2,006,085	$	5,499,295

1.Based upon remaining contractual maturity.

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

As of March 31, 2024, loans with maturities over one year consisted of approximately $3.0 billion in fixed rate loans and approximately $1.7 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 March 31, 2024 and December 31, 2023 (dollars in thousands):

	March 31, 2024			December 31, 2023
Nonaccrual loans	$	18,793		$	18,832
Modified loans which are performing in accordance with revised terms		1,271			1,296
Total nonperforming loans		20,064			20,128
Repossessed assets		1,407			1,164
Total nonperforming loans and repossessed assets	$	21,471		$	21,292
Nonperforming loans to loans, before allowance for credit losses		0.36	%		0.36	%
Nonperforming loans and repossessed assets to loans, before allowance for credit losses		0.39	%		0.38	%

48

The $39,000 decrease in nonaccrual loans during 2024 resulted from the net of $2.2 million of loans put on nonaccrual status offset by $1.7 million of loans becoming current or paid-off, $183,000 of loans transferred to other real estate and $402,000 of loans charged off. The following table summarizes the composition of nonaccrual loans (dollars in thousands):

	March 31, 2024					December 31, 2023
	Balance		% of Total			Balance		% of Total
Agricultural real estate	$	1,135		6.0	%	$	1,146		6.1	%
1-4 family residential properties		4,964		26.4	%		4,940		26.2	%
Commercial real estate		10,105		53.8	%		10,237		54.3	%
Loans secured by real estate		16,204		86.2	%		16,323		86.6	%
Agricultural loans		596		3.2	%		—		—	%
Commercial and industrial loans		1,501		8.0	%		1,931		10.3	%
Consumer loans		492		2.6	%		578		3.1	%
Total loans	$	18,793		100.0	%	$	18,832		100.0	%

Interest income that would have been reported if nonaccrual and restructured loans had been performing totaled $267,000 and $79,000 for the three months ended March 31, 2024 and 2023, respectively.

The $243,000 increase in repossessed assets during the 2024 resulted from $243,000 of additional assets repossessed and no repossessed assets sold, no writedowns, and no change in fair value premiums and discounts. The following table summarizes the composition of repossessed assets (dollars in thousands):

	March 31, 2024					December 31, 2023
	Balance		% of Total			Balance		% of Total
Construction and land development	$	1,296		92.1	%	$	1,130		97.1	%
1-4 family residential properties		50		3.6	%		33		2.8	%
Total real estate		1,346		95.7	%		1,163		99.9	%
Consumer loans		61		4.3	%		1		0.1	%
Total repossessed collateral	$	1,407		100.0	%	$	1,164		100.0	%

Repossessed assets sold during the first three months of 2024 resulted in no net gain or loss of related to real estate asset sales and net gains of $70,000 related to other asset sales. The Company also recognized no deferred losses and recorded no writedowns on real estate properties owned. Repossessed assets sold during the same period in 2023 resulted in net gains of $97,000 related to real estate asset sales and net losses of $17,000 related to other asset sales. The Company also recognized no deferred losses and recorded $151,000 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 east central Illinois, an area where agriculture is the dominant industry. Accordingly, lending and other business relationships with agriculture-based businesses are critical to the Company’s success. At March 31, 2024, the Company’s loan

49

portfolio included $602.9 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $488.5 million was concentrated in other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $14.4 million from $588.5 million at December 31, 2023 while loans concentrated in other grain farming increased $16.0 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. The Company also has $1.06 billion of loans to lessors of non-residential buildings, and $549.3 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.

Analysis of the allowance for credit losses as of March 31, 2024 and 2023, and of changes in the allowance for the three months ended March 31, 2024 and 2023, is as follows (dollars in thousands):

	Three months ended March 31,
	2024			2023
Average loans outstanding, net of unearned income	$	5,524,185		$	4,728,697
Allowance-prior year end of period		68,675			59,093
Allowance - beginning of period		68,675			59,093
Charge-offs:
1-4 family residential		67			40
Agricultural		52			—
Commercial and industrial		274			13
Consumer		426			427
Total charge-offs		819			480
Recoveries:
1-4 family residential		49			24
Commercial real estate		161			4
Agricultural		—			3
Commercial and industrial		64			256
Consumer		163			140
Total recoveries		437			427
Net charge-offs (recoveries)		382			53
Provision for credit losses		(357	)		(817	)
Allowance-end of period	$	67,936		$	58,223
Ratio of annualized net charge-offs to average loans		0.03	%		0.00	%
Ratio of allowance for credit losses to loans outstanding (at amortized cost)		1.24	%		1.22	%
Ratio of allowance for credit losses to nonperforming loans		339	%		384	%

The decrease in the allowance for credit losses to nonperforming loans ratio is primarily due to an increase in the allowance for credit losses due to acquiring Blackhawk Bank at March 31, 2024 compared to March 31, 2023.

During the first three months of 2024, the Company had net charge offs of $382,000 compared to net charge offs of $53,000 in 2023. During the first three months of 2024, there were one commercial operating loan to one borrower totaling $273,000. During the first three months of 2023, there were no significant charge-offs.

50

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 three months ended March 31, 2024 and 2023 and for the year ended December 31, 2023 (dollars in thousands):

	Three months ended March 31, 2024					Three months ended March 31, 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	$	1,367,798	—%			$	1,273,527	—%			$	1,312,023	—%
Interest-bearing		3,036,837		2.20	%		2,504,073		1.56	%		2,618,452		1.83	%
Savings		707,849		0.10	%		640,347		0.12	%		663,760		0.11	%
Time deposits		1,028,045		3.64	%		699,328		1.69	%		961,162		2.98	%
Total average deposits	$	6,140,529		1.71	%	$	5,117,275		1.01	%	$	5,555,397		1.40	%

During the first three months of 2024, the average balance of deposits increased by $585.1 million from the average balance for the year ended December 31, 2023. Average non-interest-bearing deposits increased by $55.8 million, average interest-bearing balances increased by $418.4 million, savings account balances increased $44.1 million and balances of time deposits increased $66.9 million. Approximately 99% of the Company’s deposit accounts are less than $250,000. The average account balance for all deposit customers is approximately $25,000.

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

	Three months ended March 31, 2024		Three months ended March 31, 2023		Year ended December 31, 2023
High month-end balances of total deposits	$	6,242,937	$	5,165,594	$	6,346,324
Low month-end balances of total deposits		6,112,051		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 March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024		December 31, 2023
3 months or less	$	183,002	$	183,619
Over 3 through 6 months		195,934		231,187
Over 6 through 12 months		207,190		170,641
Over 12 months		88,487		117,657
Total	$	674,613	$	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 March 31, 2024 and December 31, 2023 is presented below (dollars in thousands):

	March 31, 2024			December 31, 2023
Securities sold under agreements to repurchase	$	210,719		$	213,721
Federal Home Loan Bank advances:
Fixed term – due in one year or less		60,000			60,000
Fixed term – due after one year		178,761			203,787
Subordinated debt		106,862			106,755
Junior subordinated debentures		24,113			24,058
Total	$	580,455		$	608,321
Average interest rate at end of period		4.09	%		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		60,000			105,024
Fixed term – due after one year		203,778			415,005
Other borrowings:
Subordinated debt		106,862			106,755
Junior subordinated debentures		24,113			24,058
Averages for the period (YTD):
Securities sold under agreements to repurchase	$	264,587		$	225,307
Federal Home Loan Bank advances:
FHLB – overnight		—			55,104
Fixed term – due in one year or less		60,000			95,669
Fixed term – due after one year		198,554			311,424
Other borrowings:
Federal funds purchased		—			192
Subordinated debt		106,791			99,638
Junior subordinated debentures		24,084			21,337
Total	$	654,016		$	808,671
Average interest rate during the period		3.75	%		2.16	%

52

Securities sold under agreements to repurchase decreased $3.0 million during the first three 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 March 31, 2024 the fixed term advances, consisted of $238.6 million as follows:

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	1.5	4.69%	May 10, 2024
	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
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.67%	June 15, 2028
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.95%	June 29, 2028
	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 million. There was no balance on this line of credit as of March 31, 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 March 31, 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.

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, 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%

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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 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 million in proceeds from the trust preferred issuance and an additional $310,000 for the Company’s investment in common equity of Trust II, a total of $10,310 000, 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 (LIBOR plus 160 basis points, 7.19% and 7.25% at March 31, 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 $4,000,000 of trust preferred securities and an additional $124,000 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 LIBOR plus 185 basis points (7.44% and 7.50% at March 31, 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 $6,000,000 of trust preferred securities and an additional $186,000 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 LIBOR plus 170 basis points (7.29% and 7.35% at March 31, 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 $1,000,000 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 LIBOR plus 325 basis points (8.82% and 8.87% at March 31, 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 $4,000,000 of trust preferred securities and an additional $124,000 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 LIBOR plus 205 basis points (7.64% and 7.69% at March 31, 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 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 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 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 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

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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 March 31, 2024 (dollars in thousands):

	Rate Sensitive Within
	1 years			1-2 years			2-3 years			3-4 years			4-5 years			Thereafter			Total		Fair Value
Interest-earning assets:
Federal funds sold and other interest-bearing deposits	$	274,695		$	—		$	—		$	—		$	—		$	—		$	274,695	$	274,695
Certificates of deposit investments		1,715			2,030			—			—			—			—			3,745		3,745
Taxable investment securities		36,924			34,001			13,268			63,542			104,572			620,024			872,331		872,331
Nontaxable investment securities		2,885			895			1,900			4,125			5,354			258,517			273,676		273,676
Loans		1,600,363			1,003,508			1,168,997			615,630			410,860			699,937			5,499,295		5,134,126
Total	$	1,916,582		$	1,040,434		$	1,184,165		$	683,297		$	520,786		$	1,578,478		$	6,923,742	$	6,558,573
Interest-bearing liabilities:
Savings and NOW accounts	$	355,200		$	377,202		$	314,546		$	262,538		$	219,329		$	1,150,819		$	2,679,634	$	2,679,634
Money market accounts		292,878			187,045			143,819			110,624			85,127			287,684			1,107,177		1,107,177
Other time deposits		867,420			60,412			22,962			48,006			8,401			625			1,007,826		930,726
Short-term borrowings/debt		210,719			—			—			—			—			—			210,719		210,719
Long-term borrowings/debt		189,119			28,755			119,754			6,457			—			25,651			369,736		358,484
Total	$	1,915,336		$	653,414		$	601,081		$	427,625		$	312,857		$	1,464,779		$	5,375,092	$	5,286,740
Rate sensitive assets – rate sensitive liabilities	$	1,246		$	387,020		$	583,084		$	255,672		$	207,929		$	113,699		$	1,548,650
Cumulative GAP		1,246			388,266			971,350			1,227,022			1,434,951			1,548,650
Cumulative amounts as % of total Rate sensitive assets		0.0	%		5.6	%		8.4	%		3.7	%		3.0	%		1.6	%
Cumulative Ratio		0.0	%		5.6	%		14.0	%		17.7	%		20.7	%		22.4	%

The static GAP analysis shows that at March 31, 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 March 31, 2024, the Company’s stockholders' equity increased $4.7 million or 0.6%, to $798.0 million from $793.2 million as of December 31, 2023. During the first three months of 2024, net income contributed $20.5 million to equity before the payment of dividends to stockholders. The change in market value of available-for-sale investment securities decreased stockholders' equity by $11.2 million, net of tax. Dividends of $5.5 million were paid during the first three 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 a direct material effect on the Company’s financial statements. Quantitative measures established by regulatory capital standards to

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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 March 31, 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
March 31, 2024
Total capital (to risk-weighted assets)
Company	$	911,432		15.35	%	$	623,272	> 10.50%	N/A		N/A
First Mid Bank		863,888		14.60	%		621,287	> 10.50%	$	591,702	> 10.00%
Tier 1 capital (to risk-weighted assets)
Company		739,782		12.46	%		504,553	> 8.50%	N/A		N/A
First Mid Bank		799,100		13.51	%		502,946	> 8.50%		473,361	> 8.00%
Common equity tier 1 capital (to risk-weighted assets)
Company		715,669		12.06	%		415,514	> 7.00%	N/A		N/A
First Mid Bank		799,100		13.51	%		414,191	> 7.00%		384,606	> 6.50%
Tier 1 capital (to average assets)
Company		739,782		9.71	%		304,756	> 4.00%	N/A		N/A
First Mid Bank		799,100		10.54	%		303,404	> 4.00%		379,255	> 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 March 31, 2024 are computed in accordance with Basel III capital rules which were effective January 1, 2015. As of March 31, 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 March 31, 2024, 102,340 shares have been issued pursuant to the ESPP. During the three months ended March 31, 2024 and 2023, 8,612 shares and 7,963 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 $3.6 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 March 31, 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 March 31, 2024, the excess collateral at the FHLB would support approximately $1,683 million 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 March 31, 2024, the Company had a revolving credit agreement in the amount of $15 million with The Northern Trust Company with an outstanding balance of $0 and $15 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 March 31, 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 March 31, 2024 (in thousands):

			Less than						More than
	Total		1 year		1-3 years		3-5 years		5 years
Time deposits	$	1,007,826	$	867,420	$	83,374	$	56,407	$	625
Debt		130,975		—		4,026		—		126,949
Other borrowing		449,480		275,725		28,755		125,000		20,000
Operating leases		16,437		3,079		5,072		3,746		4,540
Supplemental retirement		1,889		50		100		150		1,589
	$	1,606,607	$	1,146,274	$	121,327	$	185,303	$	153,703

For the three months ended March 31, 2024, net cash of $29.0 million was provided by operating activities, $97.4 million was provided by investing activities, and $86.2 million was provided by financing activities. In total, cash and cash equivalents increased by $212.6 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 March 31, 2024 and December 31, 2023 were as follows (in thousands):

	March 31, 2024		December 31, 2023
Unused commitments and lines of credit:
Commercial real estate	$	208,330	$	219,117
Commercial operating		680,611		681,360
Home equity		106,151		104,142
Other		300,026		311,907
Total	$	1,295,118	$	1,316,526
Standby letters of credit	$	16,759	$	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
January 1, 2024 - January 31, 2024		—	$	—		—	$	3,600,000
February 1, 2024 - February 29, 2024		—		—		—		3,600,000
March 1, 2024 - March 31, 2024		—		—		—		3,600,000
Total		—	$	—		—	$	3,600,000

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 March 31, 2024 (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

60

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	Eighth Amendment to the Sixth Amended and Restated Credit Agreement by and between First Mid Bancshares, Inc. and The Northern Trust Company, dated April 5, 2024 Incorporated by reference to Exhibit 10.1 to First Mid Bancshares, Inc.’s Current Report on Form 8-K filed with the SEC on April 5, 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
	*Exhibits omitted pursuant to Item 601(a)(5) of Regulation S-K. Copies of any omitted exhibit will be furnished to the SEC upon request.

61

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: May 7, 2024

/s/ Joseph R. Dively

Joseph R. Dively

President and Chief Executive Officer

/s/ Matthew K. Smith

Matthew K. Smith

Chief Financial Officer

62

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: May 7, 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: May 7, 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 March 31, 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: May 7, 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 March 31, 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: May 7, 2024

/s/ Matthew K. Smith

Matthew K. Smith

Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 07, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
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		23,896,252
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 ($)	Mar. 31, 2024	Dec. 31, 2023
Cash and due from banks:
Non-interest bearing	$ 81,006,000	$ 122,871,000
Interest bearing	274,680,000	11,211,000
Federal funds sold	15,000	8,982,000
Cash and cash equivalents	355,701,000	143,064,000
Certificates of deposit	3,745,000	1,470,000
Investment securities:
Available-for-sale, at fair value (amortized cost of $1,342,603 and $1,363,721 at March 31, 2024 and December 31, 2023, respectively)	1,139,427,000	1,171,572,000
Held-to-maturity, at amortized cost (estimated fair value of $2,282 and $2,286 at March 31, 2024 and December 31, 2023, respectively)	2,282,000	2,286,000
Equity securities, at fair value	4,298,000	4,074,000
Loans held for sale	4,817,000	4,980,000
Loans	5,494,478,000	5,575,585,000
Less allowance for credit losses	(67,936,000)	(68,675,000)
Net loans	5,426,542,000	5,506,910,000
Interest receivable	37,667,000	35,082,000
Other real estate owned	1,346,000	1,163,000
Premises and equipment, net	101,666,000	101,396,000
Goodwill, net	196,461,000	196,461,000
Intangible assets, net	64,238,000	67,770,000
Bank owned life insurance	167,247,000	166,125,000
Right of use lease assets	14,318,000	14,306,000
'Deferred tax asset, net	69,876,000	70,067,000
Other assets	88,615,000	100,068,000
Total assets	7,678,246,000	7,586,794,000
Deposits:
Non-interest bearing	1,448,299,000	1,398,234,000
Interest bearing	4,794,637,000	4,725,425,000
Total deposits	6,242,936,000	6,123,659,000
Securities sold under agreements to repurchase	210,719,000	213,721,000
Interest payable	6,318,000	5,437,000
FHLB borrowings	238,761,000	263,787,000
Junior subordinated debentures, net	24,113,000	24,058,000
Subordinated debt, net	106,862,000	106,755,000
Lease liabilities	14,624,000	14,615,000
Other liabilities	35,961,000	41,558,000
Total liabilities	6,880,294,000	6,793,590,000
Stockholders’ equity:
Common stock ($4 par value; authorized 30,000,000 shares; issued 24,541,500 and 24,479,708 shares in 2024 and 2023, respectively; outstanding 23,888,929 and 23,827,137 shares in 2024 and 2023, respectively)	100,166,000	99,919,000
Additional paid-in capital	511,785,000	509,314,000
Retained earnings	353,694,000	338,662,000
Deferred compensation	832,000	2,629,000
Accumulated other comprehensive loss	(147,667,000)	(136,427,000)
Treasury stock, at cost (652,571 shares in 2024 and 652,571 shares in 2023)	(20,858,000)	(20,893,000)
Total stockholders’ equity	797,952,000	793,204,000
Total liabilities and stockholders’ equity	$ 7,678,246,000	$ 7,586,794,000

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investment securities:
Held-to-maturity, at fair value	$ 2,282	$ 2,286
Available-for-sale, amotized cost	$ 1,342,603	$ 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)	24,541,500	24,479,708
Common stock, outstanding (in shares)	23,888,929	23,827,137
Treasury stock (in shares)	652,571	652,571

XML

Condensed Consolidated Statements of Income (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest income:
Interest and fees on loans	$ 77,823,000	$ 56,236,000
Interest on investment securities	7,405,000	7,127,000
Interest on certificates of deposit investments	20,000	14,000
Interest on federal funds sold	17,000	85,000
Interest on deposits with other financial institutions	2,407,000	209,000
Total interest income	87,672,000	63,671,000
Interest expense:
Interest on deposits	26,096,000	12,767,000
Interest on securities sold under agreements to repurchase	2,056,000	1,463,000
Interest on FHLB borrowings	2,314,000	4,874,000
Interest on other borrowings	0	9,000
Interest on junior subordinated debentures	542,000	379,000
Interest on subordinated debentures	1,194,000	988,000
Total interest expense	32,202,000	20,480,000
Net interest income	55,470,000	43,191,000
Provision for credit losses	(357,000)	(817,000)
Net interest income after provision for credit losses	55,827,000	44,008,000
Other income:
Wealth management revenues	5,322,000	5,514,000
Insurance commissions	9,213,000	8,480,000
Service charges	2,956,000	2,203,000
Securities gains (losses), net	0	(46,000)
Mortgage banking revenue, net	706,000	150,000
ATM / debit card revenue	4,055,000	3,083,000
Bank owned life insurance	1,121,000	1,641,000
Other	1,105,000	1,454,000
Total other income	24,478,000	22,479,000
Other expense:
Salaries and employee benefits	30,448,000	26,071,000
Net occupancy and equipment expense	7,560,000	6,005,000
Net other real estate owned expense	(21,000)	133,000
FDIC insurance	869,000	463,000
Amortization of intangible assets	3,497,000	1,522,000
Stationery and supplies	391,000	292,000
Legal and professional	2,449,000	1,690,000
ATM / debit card	1,191,000	1,223,000
Marketing and donations	862,000	654,000
Other	6,116,000	3,524,000
Total other expense	53,362,000	41,577,000
Income before income taxes	26,943,000	24,910,000
Income taxes	6,440,000	5,730,000
Net income	$ 20,503,000	$ 19,180,000
Per share data:
Basic net income per common share	$ 0.86	$ 0.94
Diluted net income per common share	0.86	0.93
Cash dividends declared per common share	$ 0.23	$ 0.23

XML

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 20,503,000	$ 19,180,000
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, net of tax benefit (expense) of $4,225 and ($5,544) for three months ended March 31, 2024 and 2023, respectively	(11,240,000)	13,573,000
Less: reclassification adjustment for realized gains (losses) included in net income, net of tax benefit (expense) of $0 and ($13) for three months ended March 31, 2024 and 2023, respectively	0	(33,000)
Other comprehensive income (loss), net of taxes	(11,240,000)	13,606,000
Comprehensive income	$ 9,263,000	$ 32,786,000

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, tax benefit (expense)	$ 4,225	$ (5,544)
Reclassification adjustment for realized gains (losses) included in net income, taxes	$ 0	$ (13)

XML

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Deferred Compensation	Accumulated Other Comprehensive 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 (Loss)	19,180,000			19,180,000
Other comprehensive income (loss), net of tax	13,606,000					13,606,000
Cash dividends on common stock	(4,696,000)			(4,696,000)
Issuance of restricted shares pursuant to 2017 stock incentive plan	1,644,000	221,000	1,423,000
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	216,000	32,000	184,000
Purchase of treasury shares	(5,000)						(5,000)
Deferred compensation	(1,181,000)				(1,355,000)		174,000
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	307,000		53,000		254,000
Ending balance at Mar. 31, 2023	661,865,000	86,636,000	428,283,000	303,768,000	963,000	(137,901,000)	(19,884,000)
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 (Loss)	20,503,000			20,503,000
Other comprehensive income (loss), net of tax	(11,240,000)					(11,240,000)
Cash dividends on common stock	(5,471,000)			(5,471,000)
Issuance of restricted shares pursuant to 2017 stock incentive plan, net of forfeitures	1,592,000	191,000	1,401,000
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	194,000	34,000	160,000
Deferred compensation	(2,253,000)				(2,288,000)		35,000
Grant of restricted units pursuant to 2017 stock incentive plan	1,311,000		1,311,000
Release of restricted units pursuant to 2017 stock incentive plan	(617,000)		(617,000)
Vested restricted shares/units compensation expense	541,000		50,000		491,000
Ending balance at Mar. 31, 2024	$ 797,952,000	$ 100,166,000	$ 511,785,000	$ 353,694,000	$ 832,000	$ (147,667,000)	$ (20,858,000)

XML

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash dividends declared per common share	$ 0.23	$ 0.23
Stock issued during period, shares, employee stock purchase plans	8,612	7,963
Restricted stock issued during period, shares, pursuant to the 2017 stock incentive plan		55,198
Restricted stock issued during period, shares, pursuant to the 2017 stock incentive plan, net of forfeitures	47,580
Common stock issued during period, shares, pursuant to the 2017 stock incentive plan	5,600	4,350
Purchase of treasury shares (in shares)		170

XML

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 20,503	$ 19,180
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	(357)	(817)
Depreciation, amortization and accretion, net	5,338	3,485
Change in cash surrender value of bank owned life insurance	(1,121)	(926)
Change in bank owned life insurance	0	(715)
Stock-based compensation expense	606	307
Operating lease payments	(836)	(781)
Loss on investment securities, net	0	46
(Gain) loss on sales and write downs of other real estate owned, net	(70)	71
Gain on sale of loans held for sale, net	(233)	(207)
Increase in accrued interest receivable	(2,585)	(372)
Increase in accrued interest payable	910	1,378
Origination of loans held for sale	(10,448)	(12,191)
Proceeds from sale of loans held for sale	10,844	11,737
Decrease in other assets	10,537	1,867
Decrease in other liabilities	(4,040)	(1,757)
Net cash provided by operating activities	29,048	20,305
Cash flows from investing activities:
Purchases of certificates of deposit investments	(2,275)	(245)
Proceeds from sales of securities available-for-sale	0	6,483
Proceeds from maturities of securities available-for-sale	21,621	19,250
Purchases of securities available-for-sale	(994)	(1,063)
Purchase of securities held-to-maturity	0	(25)
Income increasing amortized cost of HTM securities	(11)	0
Net decrease in loans	80,542	65,541
Purchases of premises and equipment	(1,480)	(941)
Proceeds from sales of other real property owned	0	734
Net cash provided by investing activities	97,403	89,734
Cash flows from financing activities:
Net increase (decrease) in deposits	119,277	(226,223)
(Decrease) increase in repurchase agreements	(3,002)	7,250
Proceeds from FHLB advances	0	170,000
Repayment of FHLB advances	(25,000)	(40,000)
Proceeds from issuance of common stock	382	336
Purchase of treasury stock	0	(5)
Dividends paid on common stock	(5,471)	(4,696)
Net cash provided by (used in) financing activities	86,186	(93,338)
Increase in cash and cash equivalents	212,637	16,701
Cash and cash equivalents at beginning of period	143,064	152,433
Cash and cash equivalents at end of period	355,701	169,134
Cash paid during the period for:
Interest	31,321	19,094
Income taxes	(823)	(288)
Supplemental disclosures of noncash investing and financing activities
Loans transferred to other real estate	183	648
Initial recognition of right-of-use assets	729	0
Initial recognition of lease liabilities	$ 729	$ 0

XML

Pay vs Performance Disclosure - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 20,503,000	$ 19,180,000

XML

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 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

3 Months Ended

Mar. 31, 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 March 31, 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 March 31, 2024 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended March 31, 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 three months ended March 31, 2024 and 2023, respectively, and 39,150 and 37,900 restricted stock units during the three months ended March 31, 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 three months ended March 31, 2024 and 2023, 8,612 shares and 7,963 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 $2,800,000, 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 March 31, 2024 and December 31, 2023 are as follows (in thousands):

	Unrealized Losses on Securities
March 31, 2024
Net unrealized losses on securities available-for-sale	$	(203,177	)
Tax benefit		55,510
Balance at March 31, 2024	$	(147,667	)
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 months ended March 31, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
		Three months ended
		March 31,
		2024		2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities		$	—	$	(46	)	Securities (loss) gain, net
Tax effect			—		13		Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)		$	—	$	(33	)	Net reclassified amount

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

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Earnings Per Share

3 Months Ended

Mar. 31, 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 months ended March 31, 2024 and 2023 were as follows:

	Three months ended
	March 31,
	2024		2023
Basic net income per common share
Available to common stockholders:
Net income	$	20,503,000	$	19,180,000
Weighted average common shares outstanding		23,872,731		20,492,254
Basic earnings per common share	$	0.86	$	0.94
Diluted net income per common share
Available to common stockholders:
Net income applicable to diluted earnings per share	$	20,503,000	$	19,180,000
Weighted average common shares outstanding		23,872,731		20,492,254
Dilutive potential common shares: restricted stock awarded		87,604		71,718
Diluted weighted average common shares outstanding		23,960,335		20,563,972
Diluted earnings per common share	$	0.86	$	0.93

There were no shares excluded when computing diluted earnings per share for the three months ended March 31, 2024 and 2023 because they were anti-dilutive.

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Investment Securities

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	234,540	$	—	$	(27,220	)	$	207,320
Obligations of states and political subdivisions		335,350		84		(52,864	)		282,570
Mortgage-backed securities: GSE residential		699,921		854		(119,771	)		581,004
Other securities		72,792		—		(4,259	)		68,533
Total available-for-sale	$	1,342,603	$	938	$	(204,114	)	$	1,139,427
Held-to-maturity:
Other investments	$	2,282	$	—	$	—		$	2,282
Total held-to-maturity	$	2,282	$	—	$	—		$	2,282
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 $4,298,000 and $4,074,000 of equity securities, at fair value, as of March 31, 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 March 31, 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 months ended March 31, 2024 and 2023 (in thousands):

	Three months ended
	March 31,
	2024		2023
Gross gains	$	—	$	6
Gross losses		—		(52	)

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 March 31, 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	$	181,730		$	25,590		$	—		$	—		$	207,320
Obligations of state and political subdivisions		21,240			102,416			157,672			1,242			282,570
Mortgage-backed securities: GSE residential		2,280			6,030			33,981			538,713			581,004
Other securities		27,942			39,838			753			—			68,533
Total available-for-sale investments	$	233,192		$	173,874		$	192,406		$	539,955		$	1,139,427
Weighted average yield		1.75	%		2.62	%		2.25	%		1.82	%		2.00	%
Full tax-equivalent yield		1.75	%		2.63	%		2.22	%		1.84	%		2.00	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,282		$	2,282
Total held-to-maturity	$	—		$	—		$	—		$	2,282		$	2,282
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 March 31, 2024.

Investment securities carried at approximately $820 million and $831 million at March 31, 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 March 31, 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
March 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,295	$	—		$	206,025	$	(27,220	)	$	207,320	$	(27,220	)
Obligations of states and political subdivisions		27,302		(324	)		248,168		(52,540	)		275,470		(52,864	)
Mortgage-backed securities: GSE residential		5,773		(132	)		545,899		(119,639	)		551,672		(119,771	)
Other securities		5,337		(413	)		57,446		(3,846	)		62,783		(4,259	)
Total	$	39,707	$	(869	)	$	1,057,538	$	(203,245	)	$	1,097,245	$	(204,114	)
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 March 31, 2024 there were six hundred twenty-five available-for-sale securities with a fair value of $206.0 million and unrealized losses of $27.2 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 March 31, 2024, there were two hundred fifty-five obligations of states and political subdivisions with a fair value of $248.2 million and unrealized losses of $52.5 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 March 31, 2024, there were two hundred sixty-three mortgage-backed securities with a fair value of $545.9 million and unrealized losses of $119.6 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 March 31, 2024, there were forty-two other securities with a fair value of $57.4 million and unrealized losses of $3.8 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

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023 follows (in thousands):

	March 31, 2024		December 31, 2023
Construction and land development	$	188,662	$	207,033
Agricultural real estate		389,691		392,265
1-4 family residential properties		525,532		549,843
Multifamily residential properties		315,024		321,537
Commercial real estate		2,424,919		2,416,294
Loans secured by real estate		3,843,828		3,886,972
Agricultural loans		213,171		196,202
Commercial and industrial loans		1,234,776		1,273,637
Consumer loans		80,514		92,142
All other loans		175,318		184,609
Total gross loans		5,547,607		5,633,562
Less: loans held for sale		4,817		4,980
		5,542,790		5,628,582
Less:
Net deferred loan fees, premiums and discounts		48,312		52,997
Allowance for credit losses		67,936		68,675
Net loans	$	5,426,542	$	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 $31.3 million and $29.9 million at March 31, 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 March 31, 2024, the Company’s loan portfolio included $602.9 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $488.5 million was concentrated in corn and other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $14.4 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 $16.0 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. The Company also has $1.06 billion of loans to lessors of non-residential buildings, and $549.3 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.

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 staffing shortages and supply chain disruptions cause risk in this segment, most projects are associated with financially strong borrowers. The qualitative factors for this segment were increased due to higher levels of loans compared to the Company's internal policy limits

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.

1- 4 Family Residential Properties 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.

Commercial Real Estate Loans. This segment includes the Company's largest balances and the largest allowance for credit losses. The qualitative factors on non-owner occupied loans for this segment were increased due to the economic uncertainty and rate repricing risks in today's market along with the level of balances compared to the Company's internal policy limits.

Agricultural Loans. Losses in this segment are very low. Commodity prices have been volatile and yield expectations have been lowered due to the lack of rain. The qualitative factors of this segment were increased due to this higher level of risk.

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

Consumer Loans. This segment is the smallest portion of the Company's loan portfolio. This segment is anticipated to be impacted by any recession that may appear. In addition, the risk has increased for cash flow challenges for any borrower who have student loans that have been or will soon be returned to payments. The qualitative factors for this segment were not changed on a net basis in the period. Higher risk due to macro-economic conditions were offset by a decline in the severity of past dues for the loan segment.

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 months ended March 31, 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 March 31, 2024
Beginning balance	$	2,918		$	1,366		$	4,220		$	31,758	$	705	$	25,450		$	2,258	$	68,675
Initial allowance on loans purchased with credit deterioration		—			—			—			—		—		—			—		—
Provision for credit loss expense		(217	)		(8	)		(424	)		618		125		(609	)		158		(357	)
Loans charged off		—			—			67			—		52		274			426		819
Recoveries collected		—			—			49			161		—		64			163		437
Ending balance	$	2,701		$	1,358		$	3,778		$	32,537	$	778	$	24,631		$	2,153	$	67,936

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three months ended March 31, 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 March 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		—		—			—			—			—			—		—		—
Provision for credit loss expense		176		(29	)		(306	)		(834	)		(8	)		91		93		(817	)
Loans charged off		—		—			40			—			—			13		427		480
Recoveries collected		—		—			24			4			3			256		140		427
Ending balance	$	2,426	$	1,404		$	3,420		$	27,327		$	580		$	21,142	$	1,924	$	58,223
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 March 31, 2024 (in thousands):

	Collateral								Allowance
	Real Estate		Business Assets		Other		Total		for Credit Losses
Construction and land development	$	406	$	—	$	—	$	406	$	175
1-4 family residential properties		1,174		—		—		1,174		—
Multifamily residential properties		1,066		—		—		1,066		—
Commercial real estate		8,349		—		—		8,349		133
Loans secured by real estate		10,995		—		—		10,995		308
Agricultural loans		—		—		—		—		—
Commercial and industrial loans		—		506		—		506		—
Consumer loans		—		—		—		—		—
Total loans	$	10,995	$	506	$	—	$	11,501	$	308

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 March 31, 2024 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2024		2023		2022		2021		2020		Prior		Loans		Total
March 31, 2024
Construction and land development loans
Pass	$	3,584	$	81,753	$	56,302	$	16,509	$	5,781	$	22,499	$	—	$	186,428
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		423		—		423
Total	$	3,584	$	81,753	$	56,302	$	16,509	$	5,781	$	22,922	$	—	$	186,851
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	8,930	$	18,867	$	162,999	$	56,265	$	52,598	$	83,981	$	—	$	383,640
Special mention		1,170		202		—		628		—		1,864		—		3,864
Substandard		—		—		—		367		—		1,070		—		1,437
Total	$	10,100	$	19,069	$	162,999	$	57,260	$	52,598	$	86,915	$	—	$	388,941
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	18,806	$	58,463	$	95,956	$	94,556	$	78,221	$	83,227	$	70,050	$	499,279
Special mention		—		—		853		3,143		—		3,847		—		7,843
Substandard		26		113		920		514		553		8,817		576		11,519
Total	$	18,832	$	58,576	$	97,729	$	98,213	$	78,774	$	95,891	$	70,626	$	518,641
Current period gross writeoffs	$	—	$	36	$	—	$	—	$	—	$	31	$	—	$	67
Commercial real estate loans
Pass	$	9,482	$	206,109	$	706,392	$	570,053	$	321,198	$	865,221	$	—	$	2,678,455
Special mention		10		3,634		2,854		1,716		824		8,647		—		17,685
Substandard		—		—		3,761		450		10		8,489		—		12,710
Total	$	9,492	$	209,743	$	713,007	$	572,219	$	322,032	$	882,357	$	—	$	2,708,850
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural loans
Pass	$	38,758	$	121,171	$	30,478	$	16,192	$	3,396	$	1,852	$	—	$	211,847
Special mention		—		11		—		—		—		748		—		759
Substandard		—		221		368		—		6		16		—		611
Total	$	38,758	$	121,403	$	30,846	$	16,192	$	3,402	$	2,616	$	—	$	213,217
Current period gross writeoffs	$	—	$	—	$	—	$	52	$	—	$	—	$	—	$	52
Commercial and industrial loans
Pass	$	33,234	$	278,618	$	305,634	$	233,432	$	139,860	$	375,188	$	—	$	1,365,966
Special mention		103		1,061		1,528		7,073		1,359		24,394		—		35,519
Substandard		—		—		597		351		44		749		—		1,741
Total	$	33,337	$	279,679	$	307,759	$	240,856	$	141,263	$	400,331	$	—	$	1,403,226
Current period gross writeoffs	$	—	$	—	$	—	$	273	$	—	$	1	$	—	$	274
Consumer loans
Pass	$	1,612	$	8,161	$	36,304	$	17,758	$	8,383	$	6,473	$	—	$	78,691
Special mention		—		—		23		—		—		—		—		23
Substandard		—		50		338		241		141		85		—		855
Total	$	1,612	$	8,211	$	36,665	$	17,999	$	8,524	$	6,558	$	—	$	79,569
Current period gross writeoffs	$	—	$	3	$	51	$	81	$	—	$	291	$	—	$	426
Total loans
Pass	$	114,406	$	773,142	$	1,394,065	$	1,004,765	$	609,437	$	1,438,441	$	70,050	$	5,404,306
Special mention		1,283		4,908		5,258		12,560		2,183		39,500		—		65,693
Substandard		26		384		5,984		1,923		754		19,649		576		29,296
Total	$	115,715	$	778,434	$	1,405,307	$	1,019,248	$	612,374	$	1,497,590	$	70,626	$	5,499,295
Current period gross writeoffs	$	—	$	39	$	51	$	406	$	—	$	323	$	—	$	819

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 March 31, 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
March 31, 2024
Construction and land development	$	—	$	—	$	450	$	450	$	186,401	$	186,851	$	—
Agricultural real estate		—		—		1		1		388,940		388,941		—
1-4 family residential properties		1,965		1,227		1,179		4,371		514,270		518,641		—
Multifamily residential properties		—		—		551		551		312,207		312,758		—
Commercial real estate		1,784		4,319		3,852		9,955		2,386,137		2,396,092		—
Loans secured by real estate		3,749		5,546		6,033		15,328		3,787,955		3,803,283		—
Agricultural loans		—		25		596		621		212,596		213,217		—
Commercial and industrial loans		228		261		889		1,378		1,226,528		1,227,906		—
Consumer loans		245		31		216		492		79,077		79,569		—
All other loans		—		—		—		—		175,320		175,320		—
Total loans	$	4,222	$	5,863	$	7,734	$	17,819	$	5,481,476	$	5,499,295	$	—
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		23,800,446		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 March 31, 2024 and December 31, 2023 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

	March 31, 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	$	—	$	—	$	—	$	—
Agricultural real estate		1,135		1,135		1,146		1,146
1-4 family residential properties		4,705		4,964		4,679		4,940
Multifamily residential properties		—		—		—		—
Commercial real estate		9,463		10,105		10,237		10,237
Loans secured by real estate		15,303		16,204		16,062		16,323
Agricultural loans		596		596		—		—
Commercial and industrial loans		1,501		1,501		1,931		1,931
Consumer loans		492		492		578		578
All other loans		—		—		—		—
Total loans	$	17,892	$	18,793	$	18,571	$	18,832

Interest income that would have been recorded under the original terms of such nonaccrual loans totaled $267,000 and $79,000 for the three months ended March 31, 2024 and 2023, respectively.

Loan Modification Disclosures Pursuant to ASU 2022-02

The following table shows the amortized cost of loans at March 31, 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
March 31, 2024
Agricultural real estate	$	—	$	325	$	—	$	—		0.01	%
1-4 family residential properties		—		52		795		—		0.02	%
Commercial real estate		—		719		126		532		0.03	%
Loans secured by real estate		—		1,096		921		532		0.05	%
Commercial and industrial loans		—		185		196		—		0.01	%
Consumer loans		—		6		12		—		—	%
Total	$	—	$	1,287	$	1,129	$	532		0.05	%
March 31, 2023
Agricultural real estate	$	—	$	347	$	—	$	—		0.09	%
1-4 family residential properties		—		62		880		—		0.22	%
Commercial real estate		—		826		91		—		0.05	%
Loans secured by real estate		—		1,235		971		—		0.07	%
Commercial and industrial loans		—		421		319		—		0.07	%
Consumer loans		—		8		45		—		0.06	%
Total	$	—	$	1,664	$	1,335	$	—		0.06	%

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 March 31, 2024 and 2023.

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
March 31, 2024
Commercial real estate	$	—	$	—	$	—	$	—
Loans secured by real estate		—		—		—		—
Total loans	$	—	$	—	$	—	$	—
March 31, 2023
Commercial real estate	$	—	$	55	$	—	$	55
Loans secured by real estate		—		55		—		55
Total loans	$	—	$	55	$	—	$	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 March 31, 2024 and 2023.

	Weighted Average			Weighted Average
	Interest Rate			Term Extension
	Reduction			(in months)
March 31, 2024
Commercial and industrial loans		—	%		6.59
Consumer loans		—	%		—
		—	%		6.59
March 31, 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 three months ended March 31, 2024 or for the three months ended March 31, 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

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024				December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization	$	200,221	$	3,760	$	200,221	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		79,945		37,520		79,945		34,966
Other intangibles		26,552		11,198		26,552		10,620
	$	309,733	$	55,493	$	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 jr 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 June 30, 2023, goodwill of $6 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 March 31, 2024, March 31, 2023 and December 31, 2023 (in thousands):

	March 31, 2024			March 31, 2023			December 31, 2023
Beginning balance	$	6,859		$	331		$	331
Mortgage servicing rights acquired during period		—			—			7,070
Adjustment to valuation reserve		(33	)		—			(8	)
Mortgage servicing rights amortized		(364	)		(17	)		(524	)
Interest only strip		(3	)		(2	)		(10	)
Ending balance	$	6,459		$	312		$	6,859

Total amortization expense for three months ended March 31, 2024 and 2023 was as follows (in thousands):

	Three months ended
	March 31,
	2024		2023
Core deposit intangibles	$	2,554	$	1,049
Customer list intangibles		579		456
Mortgage servicing rights		364		17
	$	3,497	$	1,522

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 - 03/31/24	$	3,497
Estimated amortization expense:
For period 04/01/24 - 12/31/24		9,982
For year ended 12/31/25		12,158
For year ended 12/31/26		10,570
For year ended 12/31/27		9,351
For year ended 12/31/28		8,183

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 May 31, 2023 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

3 Months Ended

Mar. 31, 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 $210.7 million at March 31, 2024, an decrease of $3.0 million from $213.7 million at December 31, 2023. All the transactions have overnight maturities with a weighted average rate of 3.13%.

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):

	March 31, 2024		December 31, 2023
US Treasury securities and obligations of U.S. government corporations and agencies	$	57,872	$	46,544
Mortgage-backed securities: GSE: residential		152,847		167,177
Total	$	210,719	$	213,721

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

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	1.5	4.69%	May 10, 2024
	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
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.67%	June 15, 2028
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.95%	June 29, 2028
	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

XML

Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 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 March 31, 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)
March 31, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	207,320	$	—	$	207,320	$	—
Obligations of states and political subdivisions		282,570		—		282,570		—
Mortgage-backed securities		581,004		—		581,004		—
Other securities		68,533		—		62,568		5,965
Total available-for-sale securities		1,139,427		—		1,133,462		5,965
Equity securities		4,298		4,298		—		—
Loans held for sale		4,817		—		4,817		—
Derivative assets: interest rate swaps		3,539		—		3,539		—
Total assets	$	1,152,081	$	4,298	$	1,141,818	$	5,965
Derivative liabilities: interest rate swaps	$	2,435	$	—	$	2,435	$	—
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 months ended March 31, 2024 and 2023 is summarized as follows (in thousands):

	Three months ended March 31, 2024
	Other			Total
Beginning balance	$	6,163		$	6,163
Transfers into Level 3		1			1
Maturities		(199	)		(199	)
Ending balance	$	5,965		$	5,965
	Three months ended March 31, 2023
	Other			Total
Beginning balance	$	10,000		$	10,000
Transfers into Level 3		10			10
Ending balance	$	10,010		$	10,010

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 March 31, 2024 was $1.3 million and a fair value of $1.0 million resulting in specific loss exposures of $324,000.

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 March 31, 2024 was $1.3 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 $0.

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 March 31, 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)
March 31, 2024
Collateral dependent loans	$	985	$	—	$	—	$	985
Foreclosed assets held for sale		—		—		—		—
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 March 31, 2024 and December 31, 2023.

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	985	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	20%
Foreclosed assets held for sale		—	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 March 31, 2024 and December 31, 2023 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2024
Financial assets
Cash and due from banks	$	355,686	$	355,686	$	355,686	$	—	$	—
Federal funds sold		15		15		15		—		—
Certificates of deposit investments		3,745		3,745		—		3,745		—
Available-for-sale securities		1,139,427		1,139,427		—		1,133,462		5,965
Held-to-maturity securities		2,282		2,282		2,282		—		—
Equity securities		4,298		4,298		4,298		—		—
Loans held for sale		4,817		4,817		—		4,817		—
Loans net of allowance for credit losses		5,426,542		5,061,373		—		—		5,061,373
Interest receivable		37,667		37,667		—		37,667		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		8,740		8,740		—		8,740		—
Financial liabilities
Deposits	$	6,242,936	$	6,165,836	$	—	$	5,235,110	$	930,726
Securities sold under agreements to repurchase		210,719		210,719		—		210,719		—
Interest payable		6,318		6,318		—		6,318		—
Federal Home Loan Bank borrowings		238,761		234,678		—		234,678		—
Subordinated debt, net		106,862		102,398		—		102,398		—
Junior subordinated debentures, net		24,113		21,408		—		21,408		—
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

3 Months Ended

Mar. 31, 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
	March 31,
	2023
Net interest income	$	57,640
Provision for credit losses		(402	)
Non-interest income		25,664
Non-interest expense		55,808
Income before taxes		27,898
Income tax expense		6,395
Net income	$	21,503
Earnings per share
Basic	$	0.90
Diluted	$	0.90
Basic weighted average shares o/s		23,782,476
Diluted weighted average shares o/s		23,854,194

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 $2.2 million and $93,000, respectively, during the three months ended March 31, 2024 and March 31, 2023.

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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Note 9 -- Leases

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of March 31, 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):

	March 31, 2024			March 31, 2023			December 31, 2023
Operating lease right-of-use assets	$	14,318		$	15,092		$	14,306
Operating lease liabilities		14,624			15,353			14,615
Weighted-average remaining lease term (in years)		4.8			5.6		4.9
Weighted-average discount rate		3.22	%		2.68	%		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	$	2,444
2025		2,686
2026		2,509
2027		2,287
2028		1,693
Thereafter		4,818
Total lease payments		16,437
Less imputed interest		(1,813	)
Total lease liability	$	14,624

The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows (in thousands):

	Three months ended
	March 31,
	2024			2023
Operating lease cost	$	846		$	753
Short-term lease cost		35			30
Variable lease cost		138			223
Total lease cost		1,019			1,006
Income from subleases		(104	)		(94	)
Net lease cost	$	915		$	912

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):

	March 31, 2024		March 31, 2023
Operating cash flows from operating leases	$	836	$	781

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Derivatives

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023 (in thousands):

	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
March 31, 2024
Fair value hedges:
Interest rate swap agreements	Other liabilities	5.1	$	12,910	$	(2,435	)
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 months ended March 31, 2024 and 2023 were as follows (in thousands):

		Three months ended
		March 31,
Derivative	Location of Gain (Loss) on Derivatives	2024		2023
Interest rate swap agreements	Interest income on loans	$	155	$	(325	)

		Three months ended
		March 31,
Derivative	Location of Gain (Loss) on Hedged Items	2024			2023
Interest rate swap agreements	Interest income on loans	$	(155	)	$	325

As of March 31, 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	$	11,807	$	(1,104	)

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 three months ended March 31, 2024 (dollars in thousands):

March 31, 2024	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
Interest rate swap agreements	Other assets	4.8	$	30,280	$	3,539
Interest rate swap agreements	Other liabilities	4.8		30,280		(3,539	)

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Basis of Accounting and Consolidation (Policies)

3 Months Ended

Mar. 31, 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 March 31, 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 March 31, 2024 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended March 31, 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 three months ended March 31, 2024 and 2023, respectively, and 39,150 and 37,900 restricted stock units during the three months ended March 31, 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 three months ended March 31, 2024 and 2023, 8,612 shares and 7,963 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 $2,800,000, 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 Income

Accumulated Other Comprehensive Loss

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

	Unrealized Losses on Securities
March 31, 2024
Net unrealized losses on securities available-for-sale	$	(203,177	)
Tax benefit		55,510
Balance at March 31, 2024	$	(147,667	)
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 months ended March 31, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
		Three months ended
		March 31,
		2024		2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities		$	—	$	(46	)	Securities (loss) gain, net
Tax effect			—		13		Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)		$	—	$	(33	)	Net reclassified amount

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

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Basis of Accounting and Consolidation (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023 are as follows (in thousands):

	Unrealized Losses on Securities
March 31, 2024
Net unrealized losses on securities available-for-sale	$	(203,177	)
Tax benefit		55,510
Balance at March 31, 2024	$	(147,667	)
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 months ended March 31, 2024 and 2023, were as follows (in thousands):

	Amounts Reclassified from Other Comprehensive Income (Loss)
		Three months ended
		March 31,
		2024		2023			Affected Line Item in the Statements of Income
Realized gain (loss) on available-for-sale securities		$	—	$	(46	)	Securities (loss) gain, net
Tax effect			—		13		Income taxes
Total reclassifications out of accumulated other comprehensive income (loss)		$	—	$	(33	)	Net reclassified amount

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 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 months ended March 31, 2024 and 2023 were as follows:

	Three months ended
	March 31,
	2024		2023
Basic net income per common share
Available to common stockholders:
Net income	$	20,503,000	$	19,180,000
Weighted average common shares outstanding		23,872,731		20,492,254
Basic earnings per common share	$	0.86	$	0.94
Diluted net income per common share
Available to common stockholders:
Net income applicable to diluted earnings per share	$	20,503,000	$	19,180,000
Weighted average common shares outstanding		23,872,731		20,492,254
Dilutive potential common shares: restricted stock awarded		87,604		71,718
Diluted weighted average common shares outstanding		23,960,335		20,563,972
Diluted earnings per common share	$	0.86	$	0.93

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	234,540	$	—	$	(27,220	)	$	207,320
Obligations of states and political subdivisions		335,350		84		(52,864	)		282,570
Mortgage-backed securities: GSE residential		699,921		854		(119,771	)		581,004
Other securities		72,792		—		(4,259	)		68,533
Total available-for-sale	$	1,342,603	$	938	$	(204,114	)	$	1,139,427
Held-to-maturity:
Other investments	$	2,282	$	—	$	—		$	2,282
Total held-to-maturity	$	2,282	$	—	$	—		$	2,282
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 months ended March 31, 2024 and 2023 (in thousands):

	Three months ended
	March 31,
	2024		2023
Gross gains	$	—	$	6
Gross losses		—		(52	)

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 March 31, 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	$	181,730		$	25,590		$	—		$	—		$	207,320
Obligations of state and political subdivisions		21,240			102,416			157,672			1,242			282,570
Mortgage-backed securities: GSE residential		2,280			6,030			33,981			538,713			581,004
Other securities		27,942			39,838			753			—			68,533
Total available-for-sale investments	$	233,192		$	173,874		$	192,406		$	539,955		$	1,139,427
Weighted average yield		1.75	%		2.62	%		2.25	%		1.82	%		2.00	%
Full tax-equivalent yield		1.75	%		2.63	%		2.22	%		1.84	%		2.00	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,282		$	2,282
Total held-to-maturity	$	—		$	—		$	—		$	2,282		$	2,282
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 March 31, 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
March 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,295	$	—		$	206,025	$	(27,220	)	$	207,320	$	(27,220	)
Obligations of states and political subdivisions		27,302		(324	)		248,168		(52,540	)		275,470		(52,864	)
Mortgage-backed securities: GSE residential		5,773		(132	)		545,899		(119,639	)		551,672		(119,771	)
Other securities		5,337		(413	)		57,446		(3,846	)		62,783		(4,259	)
Total	$	39,707	$	(869	)	$	1,057,538	$	(203,245	)	$	1,097,245	$	(204,114	)
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)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Summary of Loans

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

	March 31, 2024		December 31, 2023
Construction and land development	$	188,662	$	207,033
Agricultural real estate		389,691		392,265
1-4 family residential properties		525,532		549,843
Multifamily residential properties		315,024		321,537
Commercial real estate		2,424,919		2,416,294
Loans secured by real estate		3,843,828		3,886,972
Agricultural loans		213,171		196,202
Commercial and industrial loans		1,234,776		1,273,637
Consumer loans		80,514		92,142
All other loans		175,318		184,609
Total gross loans		5,547,607		5,633,562
Less: loans held for sale		4,817		4,980
		5,542,790		5,628,582
Less:
Net deferred loan fees, premiums and discounts		48,312		52,997
Allowance for credit losses		67,936		68,675
Net loans	$	5,426,542	$	5,506,910

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 months ended March 31, 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 March 31, 2024
Beginning balance	$	2,918		$	1,366		$	4,220		$	31,758	$	705	$	25,450		$	2,258	$	68,675
Initial allowance on loans purchased with credit deterioration		—			—			—			—		—		—			—		—
Provision for credit loss expense		(217	)		(8	)		(424	)		618		125		(609	)		158		(357	)
Loans charged off		—			—			67			—		52		274			426		819
Recoveries collected		—			—			49			161		—		64			163		437
Ending balance	$	2,701		$	1,358		$	3,778		$	32,537	$	778	$	24,631		$	2,153	$	67,936

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three months ended March 31, 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 March 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		—		—			—			—			—			—		—		—
Provision for credit loss expense		176		(29	)		(306	)		(834	)		(8	)		91		93		(817	)
Loans charged off		—		—			40			—			—			13		427		480
Recoveries collected		—		—			24			4			3			256		140		427
Ending balance	$	2,426	$	1,404		$	3,420		$	27,327		$	580		$	21,142	$	1,924	$	58,223
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 March 31, 2024 (in thousands):

	Collateral								Allowance
	Real Estate		Business Assets		Other		Total		for Credit Losses
Construction and land development	$	406	$	—	$	—	$	406	$	175
1-4 family residential properties		1,174		—		—		1,174		—
Multifamily residential properties		1,066		—		—		1,066		—
Commercial real estate		8,349		—		—		8,349		133
Loans secured by real estate		10,995		—		—		10,995		308
Agricultural loans		—		—		—		—		—
Commercial and industrial loans		—		506		—		506		—
Consumer loans		—		—		—		—		—
Total loans	$	10,995	$	506	$	—	$	11,501	$	308

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 March 31, 2024 (in thousands):

	Term Loans by Origination Year												Revolving
Risk rating	2024		2023		2022		2021		2020		Prior		Loans		Total
March 31, 2024
Construction and land development loans
Pass	$	3,584	$	81,753	$	56,302	$	16,509	$	5,781	$	22,499	$	—	$	186,428
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		423		—		423
Total	$	3,584	$	81,753	$	56,302	$	16,509	$	5,781	$	22,922	$	—	$	186,851
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	8,930	$	18,867	$	162,999	$	56,265	$	52,598	$	83,981	$	—	$	383,640
Special mention		1,170		202		—		628		—		1,864		—		3,864
Substandard		—		—		—		367		—		1,070		—		1,437
Total	$	10,100	$	19,069	$	162,999	$	57,260	$	52,598	$	86,915	$	—	$	388,941
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	18,806	$	58,463	$	95,956	$	94,556	$	78,221	$	83,227	$	70,050	$	499,279
Special mention		—		—		853		3,143		—		3,847		—		7,843
Substandard		26		113		920		514		553		8,817		576		11,519
Total	$	18,832	$	58,576	$	97,729	$	98,213	$	78,774	$	95,891	$	70,626	$	518,641
Current period gross writeoffs	$	—	$	36	$	—	$	—	$	—	$	31	$	—	$	67
Commercial real estate loans
Pass	$	9,482	$	206,109	$	706,392	$	570,053	$	321,198	$	865,221	$	—	$	2,678,455
Special mention		10		3,634		2,854		1,716		824		8,647		—		17,685
Substandard		—		—		3,761		450		10		8,489		—		12,710
Total	$	9,492	$	209,743	$	713,007	$	572,219	$	322,032	$	882,357	$	—	$	2,708,850
Current period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural loans
Pass	$	38,758	$	121,171	$	30,478	$	16,192	$	3,396	$	1,852	$	—	$	211,847
Special mention		—		11		—		—		—		748		—		759
Substandard		—		221		368		—		6		16		—		611
Total	$	38,758	$	121,403	$	30,846	$	16,192	$	3,402	$	2,616	$	—	$	213,217
Current period gross writeoffs	$	—	$	—	$	—	$	52	$	—	$	—	$	—	$	52
Commercial and industrial loans
Pass	$	33,234	$	278,618	$	305,634	$	233,432	$	139,860	$	375,188	$	—	$	1,365,966
Special mention		103		1,061		1,528		7,073		1,359		24,394		—		35,519
Substandard		—		—		597		351		44		749		—		1,741
Total	$	33,337	$	279,679	$	307,759	$	240,856	$	141,263	$	400,331	$	—	$	1,403,226
Current period gross writeoffs	$	—	$	—	$	—	$	273	$	—	$	1	$	—	$	274
Consumer loans
Pass	$	1,612	$	8,161	$	36,304	$	17,758	$	8,383	$	6,473	$	—	$	78,691
Special mention		—		—		23		—		—		—		—		23
Substandard		—		50		338		241		141		85		—		855
Total	$	1,612	$	8,211	$	36,665	$	17,999	$	8,524	$	6,558	$	—	$	79,569
Current period gross writeoffs	$	—	$	3	$	51	$	81	$	—	$	291	$	—	$	426
Total loans
Pass	$	114,406	$	773,142	$	1,394,065	$	1,004,765	$	609,437	$	1,438,441	$	70,050	$	5,404,306
Special mention		1,283		4,908		5,258		12,560		2,183		39,500		—		65,693
Substandard		26		384		5,984		1,923		754		19,649		576		29,296
Total	$	115,715	$	778,434	$	1,405,307	$	1,019,248	$	612,374	$	1,497,590	$	70,626	$	5,499,295
Current period gross writeoffs	$	—	$	39	$	51	$	406	$	—	$	323	$	—	$	819

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 March 31, 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
March 31, 2024
Construction and land development	$	—	$	—	$	450	$	450	$	186,401	$	186,851	$	—
Agricultural real estate		—		—		1		1		388,940		388,941		—
1-4 family residential properties		1,965		1,227		1,179		4,371		514,270		518,641		—
Multifamily residential properties		—		—		551		551		312,207		312,758		—
Commercial real estate		1,784		4,319		3,852		9,955		2,386,137		2,396,092		—
Loans secured by real estate		3,749		5,546		6,033		15,328		3,787,955		3,803,283		—
Agricultural loans		—		25		596		621		212,596		213,217		—
Commercial and industrial loans		228		261		889		1,378		1,226,528		1,227,906		—
Consumer loans		245		31		216		492		79,077		79,569		—
All other loans		—		—		—		—		175,320		175,320		—
Total loans	$	4,222	$	5,863	$	7,734	$	17,819	$	5,481,476	$	5,499,295	$	—
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		23,800,446		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 March 31, 2024 and December 31, 2023 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

	March 31, 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	$	—	$	—	$	—	$	—
Agricultural real estate		1,135		1,135		1,146		1,146
1-4 family residential properties		4,705		4,964		4,679		4,940
Multifamily residential properties		—		—		—		—
Commercial real estate		9,463		10,105		10,237		10,237
Loans secured by real estate		15,303		16,204		16,062		16,323
Agricultural loans		596		596		—		—
Commercial and industrial loans		1,501		1,501		1,931		1,931
Consumer loans		492		492		578		578
All other loans		—		—		—		—
Total loans	$	17,892	$	18,793	$	18,571	$	18,832

Amortized Cost Basis of Loans Experiencing Difficulty and Modified

The following table shows the amortized cost of loans at March 31, 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
March 31, 2024
Agricultural real estate	$	—	$	325	$	—	$	—		0.01	%
1-4 family residential properties		—		52		795		—		0.02	%
Commercial real estate		—		719		126		532		0.03	%
Loans secured by real estate		—		1,096		921		532		0.05	%
Commercial and industrial loans		—		185		196		—		0.01	%
Consumer loans		—		6		12		—		—	%
Total	$	—	$	1,287	$	1,129	$	532		0.05	%
March 31, 2023
Agricultural real estate	$	—	$	347	$	—	$	—		0.09	%
1-4 family residential properties		—		62		880		—		0.22	%
Commercial real estate		—		826		91		—		0.05	%
Loans secured by real estate		—		1,235		971		—		0.07	%
Commercial and industrial loans		—		421		319		—		0.07	%
Consumer loans		—		8		45		—		0.06	%
Total	$	—	$	1,664	$	1,335	$	—		0.06	%

Performance of loans modified

The following table shows the performance of such loans that have been modified in the last twelve months ended March 31, 2024 and 2023.

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due
March 31, 2024
Commercial real estate	$	—	$	—	$	—	$	—
Loans secured by real estate		—		—		—		—
Total loans	$	—	$	—	$	—	$	—
March 31, 2023
Commercial real estate	$	—	$	55	$	—	$	55
Loans secured by real estate		—		55		—		55
Total loans	$	—	$	55	$	—	$	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 March 31, 2024 and 2023.

	Weighted Average			Weighted Average
	Interest Rate			Term Extension
	Reduction			(in months)
March 31, 2024
Commercial and industrial loans		—	%		6.59
Consumer loans		—	%		—
		—	%		6.59
March 31, 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)

3 Months Ended

Mar. 31, 2024

Schedule of Intangible Assets and Goodwill

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

	March 31, 2024				December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization	$	200,221	$	3,760	$	200,221	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		79,945		37,520		79,945		34,966
Other intangibles		26,552		11,198		26,552		10,620
	$	309,733	$	55,493	$	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 March 31, 2024, March 31, 2023 and December 31, 2023 (in thousands):

	March 31, 2024			March 31, 2023			December 31, 2023
Beginning balance	$	6,859		$	331		$	331
Mortgage servicing rights acquired during period		—			—			7,070
Adjustment to valuation reserve		(33	)		—			(8	)
Mortgage servicing rights amortized		(364	)		(17	)		(524	)
Interest only strip		(3	)		(2	)		(10	)
Ending balance	$	6,459		$	312		$	6,859

Schedule of Intangible Assets Amortization Expense

Total amortization expense for three months ended March 31, 2024 and 2023 was as follows (in thousands):

	Three months ended
	March 31,
	2024		2023
Core deposit intangibles	$	2,554	$	1,049
Customer list intangibles		579		456
Mortgage servicing rights		364		17
	$	3,497	$	1,522

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 - 03/31/24	$	3,497
Estimated amortization expense:
For period 04/01/24 - 12/31/24		9,982
For year ended 12/31/25		12,158
For year ended 12/31/26		10,570
For year ended 12/31/27		9,351
For year ended 12/31/28		8,183

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

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 jr 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)

3 Months Ended

Mar. 31, 2024

Repurchase Agreements And Other Borrowings [Abstract]

Schedule of Securities Financing Transactions

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

	March 31, 2024		December 31, 2023
US Treasury securities and obligations of U.S. government corporations and agencies	$	57,872	$	46,544
Mortgage-backed securities: GSE: residential		152,847		167,177
Total	$	210,719	$	213,721

Gross

Federal Home Loan Bank, Advances

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

Advance		Term (in years)	Interest Rate	Maturity Date
	25,000,000	1.5	4.69%	May 10, 2024
	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
	50,000,000	4.0	3.49%	December 8, 2027
	25,000,000	5.0	3.67%	June 15, 2028
	25,000,000	5.0	3.82%	June 29, 2028
	25,000,000	5.0	3.95%	June 29, 2028
	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)

3 Months Ended

Mar. 31, 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 March 31, 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)
March 31, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	207,320	$	—	$	207,320	$	—
Obligations of states and political subdivisions		282,570		—		282,570		—
Mortgage-backed securities		581,004		—		581,004		—
Other securities		68,533		—		62,568		5,965
Total available-for-sale securities		1,139,427		—		1,133,462		5,965
Equity securities		4,298		4,298		—		—
Loans held for sale		4,817		—		4,817		—
Derivative assets: interest rate swaps		3,539		—		3,539		—
Total assets	$	1,152,081	$	4,298	$	1,141,818	$	5,965
Derivative liabilities: interest rate swaps	$	2,435	$	—	$	2,435	$	—
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 months ended March 31, 2024 and 2023 is summarized as follows (in thousands):

	Three months ended March 31, 2024
	Other			Total
Beginning balance	$	6,163		$	6,163
Transfers into Level 3		1			1
Maturities		(199	)		(199	)
Ending balance	$	5,965		$	5,965
	Three months ended March 31, 2023
	Other			Total
Beginning balance	$	10,000		$	10,000
Transfers into Level 3		10			10
Ending balance	$	10,010		$	10,010

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 March 31, 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)
March 31, 2024
Collateral dependent loans	$	985	$	—	$	—	$	985
Foreclosed assets held for sale		—		—		—		—
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 March 31, 2024 and December 31, 2023.

March 31, 2024	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	985	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	20%
Foreclosed assets held for sale		—	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 March 31, 2024 and December 31, 2023 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2024
Financial assets
Cash and due from banks	$	355,686	$	355,686	$	355,686	$	—	$	—
Federal funds sold		15		15		15		—		—
Certificates of deposit investments		3,745		3,745		—		3,745		—
Available-for-sale securities		1,139,427		1,139,427		—		1,133,462		5,965
Held-to-maturity securities		2,282		2,282		2,282		—		—
Equity securities		4,298		4,298		4,298		—		—
Loans held for sale		4,817		4,817		—		4,817		—
Loans net of allowance for credit losses		5,426,542		5,061,373		—		—		5,061,373
Interest receivable		37,667		37,667		—		37,667		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		8,740		8,740		—		8,740		—
Financial liabilities
Deposits	$	6,242,936	$	6,165,836	$	—	$	5,235,110	$	930,726
Securities sold under agreements to repurchase		210,719		210,719		—		210,719		—
Interest payable		6,318		6,318		—		6,318		—
Federal Home Loan Bank borrowings		238,761		234,678		—		234,678		—
Subordinated debt, net		106,862		102,398		—		102,398		—
Junior subordinated debentures, net		24,113		21,408		—		21,408		—
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)

3 Months Ended

Mar. 31, 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
	March 31,
	2023
Net interest income	$	57,640
Provision for credit losses		(402	)
Non-interest income		25,664
Non-interest expense		55,808
Income before taxes		27,898
Income tax expense		6,395
Net income	$	21,503
Earnings per share
Basic	$	0.90
Diluted	$	0.90
Basic weighted average shares o/s		23,782,476
Diluted weighted average shares o/s		23,854,194

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Summary of Supplemental Balance Sheet Information

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

	March 31, 2024			March 31, 2023			December 31, 2023
Operating lease right-of-use assets	$	14,318		$	15,092		$	14,306
Operating lease liabilities		14,624			15,353			14,615
Weighted-average remaining lease term (in years)		4.8			5.6		4.9
Weighted-average discount rate		3.22	%		2.68	%		3.21	%

Summary of Maturities of Lease Liabilities

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

Year ending December 31,
2024	$	2,444
2025		2,686
2026		2,509
2027		2,287
2028		1,693
Thereafter		4,818
Total lease payments		16,437
Less imputed interest		(1,813	)
Total lease liability	$	14,624

Summary of Components of Lease Expense

The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows (in thousands):

	Three months ended
	March 31,
	2024			2023
Operating lease cost	$	846		$	753
Short-term lease cost		35			30
Variable lease cost		138			223
Total lease cost		1,019			1,006
Income from subleases		(104	)		(94	)
Net lease cost	$	915		$	912

Summary of Operating Lease Cash Flows

Cash paid for amounts included in the measurement of lease liabilities was (in thousands):

	March 31, 2024		March 31, 2023
Operating cash flows from operating leases	$	836	$	781

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Derivatives (Tables)

3 Months Ended

Mar. 31, 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 months ended March 31, 2024 and 2023 were as follows (in thousands):

		Three months ended
		March 31,
Derivative	Location of Gain (Loss) on Derivatives	2024		2023
Interest rate swap agreements	Interest income on loans	$	155	$	(325	)

		Three months ended
		March 31,
Derivative	Location of Gain (Loss) on Hedged Items	2024			2023
Interest rate swap agreements	Interest income on loans	$	(155	)	$	325

Summary of Cumulative Basis Adjustment of Fair Value Hedges

As of March 31, 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	$	11,807	$	(1,104	)

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 three months ended March 31, 2024 (dollars in thousands):

March 31, 2024	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
Interest rate swap agreements	Other assets	4.8	$	30,280	$	3,539
Interest rate swap agreements	Other liabilities	4.8		30,280		(3,539	)

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 March 31, 2024 and December 31, 2023 (in thousands):

	Balance Sheet Location	Weighted Average Remaining Maturity (Years)	Notional Amount		Estimated Value
March 31, 2024
Fair value hedges:
Interest rate swap agreements	Other liabilities	5.1	$	12,910	$	(2,435	)
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
	Mar. 20, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Summary Of Significant Accounting Policies [Line Items]
Common stock, par value (in dollars per share)		$ 4		$ 4
Stock plans, term		10 years
Maximum number of shares to be issued in stock incentive plan (in shares)		399,983
Employee discount for employee stock purchase plan		15.00%
Employee stock purchase plan, number of shares authorized		600,000
Stock issued during period, shares, employee stock purchase plans		8,612	7,963
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	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Balance	$ 797,952	$ 793,204	$ 661,865	$ 633,155
Accumulated Other Comprehensive Loss
Net unrealized losses on securities available-for-sale	(203,177)	(192,149)
Tax benefit	55,510	55,722
Balance	$ (147,667)	$ (136,427)	$ (137,901)	$ (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
	Mar. 31, 2024	Mar. 31, 2023
Realized gain (loss) on available-for-sale securities	$ 0	$ (46)
Tax effect	(6,440)	(5,730)
Total reclassifications out of accumulated other comprehensive income (loss)	0	(33)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Realized gain (loss) on available-for-sale securities	0	(46)
Tax effect	$ 0	$ 13

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Earnings Per Share - Components of Basic and Diluted Net Income Per Common Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Basic Net Income per Common Share Available to Common Stockholders:
Net Income (Loss)	$ 20,503,000	$ 19,180,000
Weighted average common shares outstanding	23,872,731	20,492,254
Basic earnings per common share	$ 0.86	$ 0.94
Diluted Net Income per Common Share Available to Common Stockholders:
Net income applicable to diluted earnings per share	$ 20,503,000	$ 19,180,000
Weighted average common shares outstanding	23,872,731	20,492,254
Dilutive potential common shares: restricted stock awarded	87,604	71,718
Diluted weighted average common shares outstanding	23,960,335	20,563,972
Diluted earnings per common share	$ 0.86	$ 0.93

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Earnings Per Share - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Number of anti-dilutive shares excluded when computing diluted earnings per share	0	0

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Investment Securities - Available for Sale and Held for Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available-for-sale: [Abstract]
Amortized Cost	$ 1,342,603	$ 1,363,721
Gross Unrealized Gains	938	1,310
Gross Unrealized (Losses)	(204,114)	(193,459)
Fair Value	1,139,427	1,171,572
Held-to-maturity: [Abstract]
Held-to-maturity	2,282	2,286
Gross Unrealized Gains	0	0
Unrealized (Losses)	0	0
Fair Value	2,282	2,286
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale: [Abstract]
Amortized Cost	234,540	237,875
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	(27,220)	(26,219)
Fair Value	207,320	211,656
Obligations of States and Political Subdivisions
Available-for-sale: [Abstract]
Amortized Cost	335,350	337,835
Gross Unrealized Gains	84	152
Gross Unrealized (Losses)	(52,864)	(49,371)
Fair Value	282,570	288,616
Mortgage-backed Securities: GSE Residential
Available-for-sale: [Abstract]
Amortized Cost	699,921	714,216
Gross Unrealized Gains	854	1,158
Gross Unrealized (Losses)	(119,771)	(113,074)
Fair Value	581,004	602,300
Other Securities
Available-for-sale: [Abstract]
Amortized Cost	72,792	73,795
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	(4,259)	(4,795)
Fair Value	68,533	69,000
Other Investments
Held-to-maturity: [Abstract]
Held-to-maturity	2,282	2,286
Gross Unrealized Gains	0	0
Unrealized (Losses)	0	0
Fair Value	$ 2,282	$ 2,286

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Investment Securities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) Position Security	Dec. 31, 2023 USD ($) Position Security
Schedule Of Available For Sale Securities [Line Items]
Equity securities, at fair value	$ 4,298,000	$ 4,074,000
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	$ 820,000,000	831,000,000
Available-for-sale, 12 months or longer, Fair Value	1,057,538,000	1,075,835,000
12 months or longer, unrealized losses	$ 203,245,000	$ 192,616,000
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	625	36
Available-for-sale, 12 months or longer, Fair Value	$ 206,025,000	$ 210,069,000
12 months or longer, unrealized losses	$ 27,220,000	$ 26,215,000
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	255	237
Available-for-sale, 12 months or longer, Fair Value	$ 248,168,000	$ 241,630,000
12 months or longer, unrealized losses	$ 52,540,000	$ 49,038,000
Mortgage-backed Securities: GSE Residential
Schedule Of Available For Sale Securities [Line Items]
Number of securities in unrealized loss positions | Security	263	263
Available-for-sale, 12 months or longer, Fair Value	$ 545,899,000	$ 566,197,000
12 months or longer, unrealized losses	$ 119,639,000	$ 113,007,000
Other Securities
Schedule Of Available For Sale Securities [Line Items]
Number of securities in unrealized loss positions | Security	42	43
Available-for-sale, 12 months or longer, Fair Value	$ 57,446,000	$ 57,939,000
12 months or longer, unrealized losses	$ 3,846,000	$ 4,356,000

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Investment Securities - Realized Gains and Losses From Sale of Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Realized Investment Gains (Losses) [Abstract]
Gross gains	$ 0	$ 6
Gross losses	$ 0	$ (52)

XML

Investment Securities - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Available-for-sale investments, One year or less	$ 233,192
Available-for-sale investments, After 1 through 5 years	173,874
Available-for-sale investments, After 5 through 10 years	192,406
Available-for-sale investments, After ten years	539,955
Available-for-sale investments, Fair Value	$ 1,139,427	$ 1,171,572
Available-for-sale, Weighted average yield, One year or less (in hundredths)	1.75%
Available-for-sale , Weighted average yield,After 1 through 5 years (in hundredths)	2.62%
Available-for-sale, Weighted average yield,After 5 through 10 years (in hundredths)	2.25%
Available-for-sale , Weighted average yield,After ten years (in hundredths)	1.82%
Available-for-sale , Weighted average yield,Total (in hundredths)	2.00%
Available-for-sale, Full Tax-equivalent yield, One year or less (in hundredths)	1.75%
Available-for-sale, Full Tax-equivalent yield,After 1 through 5 years (in hundredths)	2.63%
Available-for-sale, Full Tax-equivalent yield, After 5 through 10 years (in hundredths)	2.22%
Available-for-sale, Full Tax-equivalent yield,After ten years (in hundredths)	1.84%
Available-for-sale, Full Tax-equivalent yield,Total (in hundredths)	2.00%
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	2,282
Held-to-maturity	$ 2,282	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	$ 181,730
Available-for-sale investments, After 1 through 5 years	25,590
Available-for-sale investments, After 5 through 10 years	0
Available-for-sale investments, After ten years	0
Available-for-sale investments, Fair Value	207,320	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	21,240
Available-for-sale investments, After 1 through 5 years	102,416
Available-for-sale investments, After 5 through 10 years	157,672
Available-for-sale investments, After ten years	1,242
Available-for-sale investments, Fair Value	282,570	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	2,280
Available-for-sale investments, After 1 through 5 years	6,030
Available-for-sale investments, After 5 through 10 years	33,981
Available-for-sale investments, After ten years	538,713
Available-for-sale investments, Fair Value	581,004	602,300
Other Securities
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Available-for-sale investments, One year or less	27,942
Available-for-sale investments, After 1 through 5 years	39,838
Available-for-sale investments, After 5 through 10 years	753
Available-for-sale investments, After ten years	0
Available-for-sale investments, Fair Value	68,533	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	2,282
Held-to-maturity	$ 2,282	$ 2,286

XML

Investment Securities - Fair Value of Investments with Sustained Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Less than 12 months, Fair Value	$ 39,707	$ 34,698
Available-for-sale, Less than 12 months, Unrealized Losses	(869)	(843)
Available-for-sale, 12 months or longer, Fair Value	1,057,538	1,075,835
Available-for-sale, 12 months or longer, Unrealized losses	(203,245)	(192,616)
Available-for-sale, Total Fair Value	1,097,245	1,110,533
Available-for-sale, Total Unrealized Losses	(204,114)	(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	1,295	1,288
Available-for-sale, Less than 12 months, Unrealized Losses	0	(4)
Available-for-sale, 12 months or longer, Fair Value	206,025	210,069
Available-for-sale, 12 months or longer, Unrealized losses	(27,220)	(26,215)
Available-for-sale, Total Fair Value	207,320	211,357
Available-for-sale, Total Unrealized Losses	(27,220)	(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	27,302	22,281
Available-for-sale, Less than 12 months, Unrealized Losses	(324)	(333)
Available-for-sale, 12 months or longer, Fair Value	248,168	241,630
Available-for-sale, 12 months or longer, Unrealized losses	(52,540)	(49,038)
Available-for-sale, Total Fair Value	275,470	263,911
Available-for-sale, Total Unrealized Losses	(52,864)	(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	5,773	5,818
Available-for-sale, Less than 12 months, Unrealized Losses	(132)	(67)
Available-for-sale, 12 months or longer, Fair Value	545,899	566,197
Available-for-sale, 12 months or longer, Unrealized losses	(119,639)	(113,007)
Available-for-sale, Total Fair Value	551,672	572,015
Available-for-sale, Total Unrealized Losses	(119,771)	(113,074)
Other Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Less than 12 months, Fair Value	5,337	5,311
Available-for-sale, Less than 12 months, Unrealized Losses	(413)	(439)
Available-for-sale, 12 months or longer, Fair Value	57,446	57,939
Available-for-sale, 12 months or longer, Unrealized losses	(3,846)	(4,356)
Available-for-sale, Total Fair Value	62,783	63,250
Available-for-sale, Total Unrealized Losses	$ (4,259)	$ (4,795)

XML

Loans and Allowance for Credit Losses - Summary of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 5,547,607	$ 5,633,562
Loans held for sale	4,817	4,980
Loans and leases receivable gross excluding loans held for sale	5,542,790	5,628,582
Net deferred loan fees, premiums and discounts	48,312	52,997
Allowance for credit losses	67,936	68,675	$ 58,223	$ 59,093
Net loans	5,426,542	5,506,910
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	3,843,828	3,886,972
Construction and Land Development | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	188,662	207,033
Allowance for credit losses	2,701	2,918	2,426	2,250
Agricultural | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	389,691	392,265
Allowance for credit losses	1,358	1,366	1,404	1,433
Commercial | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	2,424,919	2,416,294
Allowance for credit losses	32,537	31,758	27,327	28,157
Agricultural Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	213,171	196,202
Allowance for credit losses	778	705	580	585
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,234,776	1,273,637
Allowance for credit losses	24,631	25,450	21,142	20,808
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	80,514	92,142
Allowance for credit losses	2,153	2,258	1,924	2,118
All Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	175,318	184,609
1-4 Family | Residential Properties | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	525,532	549,843
Allowance for credit losses	3,778	4,220	$ 3,420	$ 3,742
Multifamily | Residential Properties | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 315,024	$ 321,537

XML

Loans and Allowance for Credit Losses - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) Loan_modified Alternative	Mar. 31, 2023 USD ($) Loan_modified	Dec. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	$ 31,300,000		$ 29,900,000
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	$ 267,000	$ 79,000
Troubled debt restructurings balance | Loan_modified	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
Non-residential Buildings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 1,060,000,000.00
Residential Buildings and Dwellings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 549,300,000
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	$ 602,900,000		588,500,000
Increase in accounts and notes receivable	$ 14,400,000
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	$ 488,500,000		$ 472,500,000
Increase in accounts and notes receivable	$ 16,000,000
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

XML

Loans and Allowance for Credit Losses - Allowance for Credit Losses Based on Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	$ 68,675	$ 59,093	$ 59,093
Initial allowance on loans purchased with credit deterioration	0	0	3,791
Provision for credit loss expense	(357)	(817)	6,104
Loans charged off	819	480	2,631
Recoveries collected	437	427	2,318
Allowance for credit losses, Ending Balance	67,936	58,223	68,675
Construction and Land Development | Real Estate Loan
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	2,918	2,250	2,250
Initial allowance on loans purchased with credit deterioration	0	0	308
Provision for credit loss expense	(217)	176	374
Loans charged off	0	0	14
Recoveries collected	0	0	0
Allowance for credit losses, Ending Balance	2,701	2,426	2,918
Agricultural | Real Estate Loan
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	1,366	1,433	1,433
Initial allowance on loans purchased with credit deterioration	0	0	0
Provision for credit loss expense	(8)	(29)	(67)
Loans charged off	0	0	0
Recoveries collected	0	0	0
Allowance for credit losses, Ending Balance	1,358	1,404	1,366
Residential Properties | Real Estate Loan | 1-4 Family
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	4,220	3,742	3,742
Initial allowance on loans purchased with credit deterioration	0	0	124
Provision for credit loss expense	(424)	(306)	225
Loans charged off	67	40	87
Recoveries collected	49	24	216
Allowance for credit losses, Ending Balance	3,778	3,420	4,220
Commercial | Real Estate Loan
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	31,758	28,157	28,157
Initial allowance on loans purchased with credit deterioration	0	0	1,066
Provision for credit loss expense	618	(834)	1,755
Loans charged off	0	0	25
Recoveries collected	161	4	805
Allowance for credit losses, Ending Balance	32,537	27,327	31,758
Agricultural Loans
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	705	585	585
Initial allowance on loans purchased with credit deterioration	0	0	0
Provision for credit loss expense	125	(8)	490
Loans charged off	52	0	408
Recoveries collected	0	3	38
Allowance for credit losses, Ending Balance	778	580	705
Commercial and Industrial Loans
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	25,450	20,808	20,808
Initial allowance on loans purchased with credit deterioration	0	0	2,273
Provision for credit loss expense	(609)	91	2,322
Loans charged off	274	13	529
Recoveries collected	64	256	576
Allowance for credit losses, Ending Balance	24,631	21,142	25,450
Consumer Loans
Allowance for loan losses [Abstract]
Allowance for credit losses, Beginning Balance	2,258	2,118	2,118
Initial allowance on loans purchased with credit deterioration	0	0	20
Provision for credit loss expense	158	93	1,005
Loans charged off	426	427	1,568
Recoveries collected	163	140	683
Allowance for credit losses, Ending Balance	$ 2,153	$ 1,924	$ 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	Mar. 31, 2024 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	$ 11,501
Allowance for Credit Losses	308
Agricultural Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Allowance for Credit Losses	0
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	506
Allowance for Credit Losses	0
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Allowance for Credit Losses	0
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	10,995
Real Estate | Agricultural Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Real Estate | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Real Estate | Consumer 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	506
Business Assets | Agricultural Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Business Assets | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	506
Business Assets | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Other Property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Other Property | Agricultural Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Other Property | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Other Property | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	10,995
Allowance for Credit Losses	308
Real Estate Loan | Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	406
Allowance for Credit Losses	175
Real Estate Loan | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	8,349
Allowance for Credit Losses	133
Real Estate Loan | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	10,995
Real Estate Loan | Real Estate | Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	406
Real Estate Loan | Real Estate | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	8,349
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 | Construction and Land Development
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
Real Estate Loan | Other Property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Real Estate Loan | Other Property | Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0
Real Estate Loan | Other Property | 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	1,174
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	1,174
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
1-4 Family | Real Estate Loan | Other Property | 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	1,066
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	1,066
Multifamily | 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 | Other Property | 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	Mar. 31, 2024	Dec. 31, 2023
Credit Quality Information [Abstract]
Current fiscal year	$ 115,715	$ 792,071
Fiscal year before current fiscal year	778,434	1,402,051
Two years before current fiscal year	1,405,307	994,108
Three years before current fiscal year	1,019,248	619,354
Four years before current fiscal year	612,374	381,174
Prior	1,497,590	1,315,596
Revolving Loans	70,626	76,211
Current period gross writeoffs, current fiscal year	0	10
Current period gross writeoffs, fiscal year before current fiscal year	39	761
Current period gross writeoffs, two year before current fiscal year	51	208
Current period gross writeoffs, three year before current fiscal year	406	51
Current period gross writeoffs, four year before current fiscal year	0	93
Current period gross writeoffs, prior	323	1,508
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	5,499,295	5,580,565
Current period gross writeoffs, total loans receivables	819	2,631
Pass
Credit Quality Information [Abstract]
Current fiscal year	114,406	786,908
Fiscal year before current fiscal year	773,142	1,390,885
Two years before current fiscal year	1,394,065	976,531
Three years before current fiscal year	1,004,765	616,020
Four years before current fiscal year	609,437	376,655
Prior	1,438,441	1,254,871
Revolving Loans	70,050	75,700
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	5,404,306	5,477,570
Special Mention
Credit Quality Information [Abstract]
Current fiscal year	1,283	4,925
Fiscal year before current fiscal year	4,908	5,566
Two years before current fiscal year	5,258	15,110
Three years before current fiscal year	12,560	2,721
Four years before current fiscal year	2,183	3,368
Prior	39,500	42,350
Revolving Loans	0	10
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	65,693	74,050
Substandard
Credit Quality Information [Abstract]
Current fiscal year	26	238
Fiscal year before current fiscal year	384	5,600
Two years before current fiscal year	5,984	2,467
Three years before current fiscal year	1,923	613
Four years before current fiscal year	754	1,151
Prior	19,649	18,375
Revolving Loans	576	501
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	29,296	28,945
Agricultural Loans
Credit Quality Information [Abstract]
Current fiscal year	38,758	147,999
Fiscal year before current fiscal year	121,403	27,905
Two years before current fiscal year	30,846	10,044
Three years before current fiscal year	16,192	2,549
Four years before current fiscal year	3,402	1,921
Prior	2,616	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	0	276
Current period gross writeoffs, two year before current fiscal year	0	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	0	132
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	213,217	196,272
Current period gross writeoffs, total loans receivables	52	408
Agricultural Loans | Pass
Credit Quality Information [Abstract]
Current fiscal year	38,758	147,993
Fiscal year before current fiscal year	121,171	27,895
Two years before current fiscal year	30,478	10,044
Three years before current fiscal year	16,192	2,549
Four years before current fiscal year	3,396	1,883
Prior	1,852	5,854
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	211,847	196,218
Agricultural Loans | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	0	6
Fiscal year before current fiscal year	11	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	748	0
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	759	54
Agricultural Loans | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	221	0
Two years before current fiscal year	368	0
Three years before current fiscal year	0	0
Four years before current fiscal year	6	0
Prior	16	0
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	611	0
Commercial Industrial And Other Portfolio Segment
Credit Quality Information [Abstract]
Current fiscal year	33,337	291,351
Fiscal year before current fiscal year	279,679	309,188
Two years before current fiscal year	307,759	242,971
Three years before current fiscal year	240,856	155,119
Four years before current fiscal year	141,263	74,532
Prior	400,331	377,607
Revolving Loans		0
Current period gross writeoffs, current fiscal year	0	0
Current period gross writeoffs, fiscal year before current fiscal year	0	353
Current period gross writeoffs, two year before current fiscal year	0	0
Current period gross writeoffs, three year before current fiscal year	273	49
Current period gross writeoffs, four year before current fiscal year	0	20
Current period gross writeoffs, prior	1	107
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,403,226	1,450,768
Current period gross writeoffs, total loans receivables	274	529
Commercial Industrial And Other Portfolio Segment | Pass
Credit Quality Information [Abstract]
Current fiscal year	33,234	290,304
Fiscal year before current fiscal year	278,618	306,794
Two years before current fiscal year	305,634	232,198
Three years before current fiscal year	233,432	154,499
Four years before current fiscal year	139,860	73,906
Prior	375,188	347,957
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,365,966	1,405,658
Commercial Industrial And Other Portfolio Segment | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	103	1,047
Fiscal year before current fiscal year	1,061	1,857
Two years before current fiscal year	1,528	9,982
Three years before current fiscal year	7,073	562
Four years before current fiscal year	1,359	597
Prior	24,394	28,900
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	35,519	42,945
Commercial Industrial And Other Portfolio Segment | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	537
Two years before current fiscal year	597	791
Three years before current fiscal year	351	58
Four years before current fiscal year	44	29
Prior	749	750
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,741	2,165
Consumer Loans
Credit Quality Information [Abstract]
Current fiscal year	1,612	9,633
Fiscal year before current fiscal year	8,211	40,656
Two years before current fiscal year	36,665	21,589
Three years before current fiscal year	17,999	10,526
Four years before current fiscal year	8,524	4,534
Prior	6,558	4,076
Revolving Loans	0	0
Current period gross writeoffs, current fiscal year	0	22
Current period gross writeoffs, fiscal year before current fiscal year	3	177
Current period gross writeoffs, two year before current fiscal year	51	89
Current period gross writeoffs, three year before current fiscal year	81	10
Current period gross writeoffs, four year before current fiscal year	0	7
Current period gross writeoffs, prior	291	1,075
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	79,569	91,014
Current period gross writeoffs, total loans receivables	426	1,380
Consumer Loans | Pass
Credit Quality Information [Abstract]
Current fiscal year	1,612	9,547
Fiscal year before current fiscal year	8,161	40,225
Two years before current fiscal year	36,304	21,264
Three years before current fiscal year	17,758	10,387
Four years before current fiscal year	8,383	4,475
Prior	6,473	4,035
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	78,691	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	23	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	23	26
Consumer Loans | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	86
Fiscal year before current fiscal year	50	405
Two years before current fiscal year	338	325
Three years before current fiscal year	241	139
Four years before current fiscal year	141	59
Prior	85	41
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	855	1,055
Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	3,803,283	3,842,511
Real Estate Loan | Construction and Land Development
Credit Quality Information [Abstract]
Current fiscal year	3,584	68,086
Fiscal year before current fiscal year	81,753	74,065
Two years before current fiscal year	56,302	27,392
Three years before current fiscal year	16,509	5,188
Four years before current fiscal year	5,781	10,795
Prior	22,922	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	186,851	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	3,584	68,086
Fiscal year before current fiscal year	81,753	74,065
Two years before current fiscal year	56,302	27,392
Three years before current fiscal year	16,509	5,188
Four years before current fiscal year	5,781	10,795
Prior	22,499	19,115
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	186,428	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	0	0
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	0	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	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	423	436
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	423	436
Real Estate Loan | Agricultural
Credit Quality Information [Abstract]
Current fiscal year	10,100	19,437
Fiscal year before current fiscal year	19,069	164,812
Two years before current fiscal year	162,999	58,813
Three years before current fiscal year	57,260	53,249
Four years before current fiscal year	52,598	20,589
Prior	86,915	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	388,941	391,132
Current period gross writeoffs, total loans receivables	0	0
Real Estate Loan | Agricultural | Pass
Credit Quality Information [Abstract]
Current fiscal year	8,930	19,231
Fiscal year before current fiscal year	18,867	164,812
Two years before current fiscal year	162,999	57,815
Three years before current fiscal year	56,265	53,249
Four years before current fiscal year	52,598	19,419
Prior	83,981	71,189
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	383,640	385,715
Real Estate Loan | Agricultural | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	1,170	206
Fiscal year before current fiscal year	202	0
Two years before current fiscal year	0	627
Three years before current fiscal year	628	0
Four years before current fiscal year	0	1,170
Prior	1,864	1,868
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	3,864	3,871
Real Estate Loan | Agricultural | Substandard
Credit Quality Information [Abstract]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	371
Three years before current fiscal year	367	0
Four years before current fiscal year	0	0
Prior	1,070	1,175
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,437	1,546
Real Estate Loan | Commercial And Multifamily Portfolio Segment
Credit Quality Information [Abstract]
Current fiscal year	9,492	189,294
Fiscal year before current fiscal year	209,743	686,704
Two years before current fiscal year	713,007	550,570
Three years before current fiscal year	572,219	319,254
Four years before current fiscal year	322,032	241,661
Prior	882,357	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	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	25
Current period gross writeoffs, prior	0	0
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	2,708,850	2,703,833
Current period gross writeoffs, total loans receivables	0	25
Real Estate Loan | Commercial And Multifamily Portfolio Segment | Pass
Credit Quality Information [Abstract]
Current fiscal year	9,482	185,628
Fiscal year before current fiscal year	206,109	680,099
Two years before current fiscal year	706,392	548,733
Three years before current fiscal year	570,053	317,075
Four years before current fiscal year	321,198	239,323
Prior	865,221	701,464
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	2,678,455	2,672,322
Real Estate Loan | Commercial And Multifamily Portfolio Segment | Special Mention
Credit Quality Information [Abstract]
Current fiscal year	10	3,666
Fiscal year before current fiscal year	3,634	2,706
Two years before current fiscal year	2,854	1,317
Three years before current fiscal year	1,716	2,159
Four years before current fiscal year	824	1,563
Prior	8,647	7,778
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	17,685	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	0	3,899
Two years before current fiscal year	3,761	520
Three years before current fiscal year	450	20
Four years before current fiscal year	10	775
Prior	8,489	7,108
Revolving Loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	12,710	12,322
1-4 Family | Real Estate Loan
Credit Quality Information [Abstract]
Current fiscal year	18,832	66,271
Fiscal year before current fiscal year	58,576	98,721
Two years before current fiscal year	97,729	82,729
Three years before current fiscal year	98,213	73,469
Four years before current fiscal year	78,774	27,142
Prior	95,891	117,926
Revolving Loans	70,626	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	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	31	63
Current period gross writeoffs, revolving loans	0	0
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	518,641	542,469
Current period gross writeoffs, total loans receivables	67	87
1-4 Family | Real Estate Loan | Pass
Credit Quality Information [Abstract]
Current fiscal year	18,806	66,119
Fiscal year before current fiscal year	58,463	96,995
Two years before current fiscal year	95,956	79,085
Three years before current fiscal year	94,556	73,073
Four years before current fiscal year	78,221	26,854
Prior	83,227	105,257
Revolving Loans	70,050	75,700
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	499,279	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	853	3,184
Three years before current fiscal year	3,143	0
Four years before current fiscal year	0	0
Prior	3,847	3,804
Revolving Loans	0	10
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	7,843	7,965
1-4 Family | Real Estate Loan | Substandard
Credit Quality Information [Abstract]
Current fiscal year	26	152
Fiscal year before current fiscal year	113	759
Two years before current fiscal year	920	460
Three years before current fiscal year	514	396
Four years before current fiscal year	553	288
Prior	8,817	8,865
Revolving Loans	576	501
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	$ 11,519	$ 11,421

XML

Loans and Allowance for Credit Losses - Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans Receivable Aging Analysis [Abstract]
Total Past Due	$ 5,494,478	$ 5,575,585
Total Loans Receivable	5,499,295	5,580,565
Total Loans> 90 Days and Accruing	0	0
Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	3,803,283	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	518,641	542,469
Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	186,851	205,077
Total Loans> 90 Days and Accruing	0	0
Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	388,941	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	518,641	542,469
Total Loans> 90 Days and Accruing	0	0
Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	312,758	319,129
Total Loans> 90 Days and Accruing	0	0
Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	2,396,092	2,384,704
Total Loans> 90 Days and Accruing	0	0
Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	213,217	196,272
Total Loans> 90 Days and Accruing	0	0
Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	1,227,906	1,266,159
Total Loans> 90 Days and Accruing	0	0
Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	79,569	91,014
Total Loans> 90 Days and Accruing	0	0
All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Loans Receivable	175,320	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	4,222	5,679
Financial Asset, 30 to 59 Days Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	3,749	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	0	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	1,965	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	1,784	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	228	673
Financial Asset, 30 to 59 Days Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	245	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	5,863	1,424
Financial Asset, 60 to 89 Days Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	5,546	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	0	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	1,227	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	4,319	74
Financial Asset, 60 to 89 Days Past Due | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	25	0
Financial Asset, 60 to 89 Days Past Due | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	261	73
Financial Asset, 60 to 89 Days Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	31	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	7,734	7,646
Financial Asset, Equal to or Greater than 90 Days Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	6,033	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	1	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	1,179	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	3,852	3,765
Financial Asset, Equal to or Greater than 90 Days Past Due | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	596	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	889	1,531
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	216	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	17,819	14,749
Total Past Due | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	15,328	10,997
Total Past Due | Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	450	1,035
Total Past Due | Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1	1
Total Past Due | Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Past Due	4,371	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	9,955	4,658
Total Past Due | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	621	0
Total Past Due | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1,378	2,277
Total Past Due | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	492	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	5,481,476	5,565,816
Current | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	3,787,955	3,831,514
Current | Construction and Land Development | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	186,401	204,042
Current | Agricultural | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	388,940	391,131
Current | Residential Properties | Real Estate Loan | 1-4 Family
Loans Receivable Aging Analysis [Abstract]
Total Past Due	514,270	537,867
Current | Residential Properties | Real Estate Loan | Multifamily
Loans Receivable Aging Analysis [Abstract]
Total Past Due	312,207	318,428
Current | Commercial | Real Estate Loan
Loans Receivable Aging Analysis [Abstract]
Total Past Due	2,386,137	23,800,446
Current | Agricultural Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	212,596	196,272
Current | Commercial and Industrial Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	1,226,528	1,263,882
Current | Consumer Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	79,077	89,539
Current | All Other Loans
Loans Receivable Aging Analysis [Abstract]
Total Past Due	$ 175,320	$ 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	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	$ 17,892	$ 18,571
Financing Receivable, Nonaccrual	18,793	18,832
Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
Financing Receivable, Nonaccrual	0	0
Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	1,135	1,146
Financing Receivable, Nonaccrual	1,135	1,146
1-4 Family Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	4,705	4,679
Financing Receivable, Nonaccrual	4,964	4,940
Multifamily Residential Properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
Financing Receivable, Nonaccrual	0	0
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	9,463	10,237
Financing Receivable, Nonaccrual	10,105	10,237
Loans Secured by Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	15,303	16,062
Financing Receivable, Nonaccrual	16,204	16,323
Agricultural Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	596	0
Financing Receivable, Nonaccrual	596	0
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	1,501	1,931
Financing Receivable, Nonaccrual	1,501	1,931
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	492	578
Financing Receivable, Nonaccrual	492	578
All Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
Financing Receivable, Nonaccrual	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Amortized Cost Basis of Loans Experiencing Financial Difficulty and Modified (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.05%	0.06%
Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.05%	0.07%
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.00%	0.06%
Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance		$ 0
Total Class of Financing Receivable	0.01%	0.09%
Residential Properties | Real Estate Loan | 1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.02%	0.22%
Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.03%	0.05%
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable	0.01%	0.07%
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	1,287	1,664
Payment Delay Investment | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	1,096	1,235
Payment Delay Investment | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	6	8
Payment Delay Investment | Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	325	347
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	52	62
Payment Delay Investment | Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	719	826
Payment Delay Investment | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	185	421
Term Extension Modifications
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	1,129	1,335
Term Extension Modifications | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	921	971
Term Extension Modifications | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	12	45
Term Extension Modifications | Agricultural Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	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	795	880
Term Extension Modifications | Commercial Real Estate | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	126	91
Term Extension Modifications | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	196	319
Interest Rate Reduction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	532	0
Interest Rate Reduction | Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables, Modifications during Period, Balance	532	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	532	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	Mar. 31, 2024	Mar. 31, 2023
30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	$ 0	$ 0
60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	55
90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	55
Real Estate Loan | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Real Estate Loan | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	55
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	55
Commercial Real Estate | Real Estate Loan | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	0
Commercial Real Estate | Real Estate Loan | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	0	55
Commercial Real Estate | 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
Commercial Real Estate | Real Estate Loan | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable Modifications Performance Recorded Investment	$ 0	$ 55

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Loans and Allowance for Credit Losses - Financial Effect of Loan Modifications (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted Average Interest Rate Reduction	0.00%	4.75%
Weighted Average Term Extension (in months)	6 months 17 days	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)	6 months 17 days	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

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Loans and Allowance for Credit Losses - Summary of Purchased Credit Deteriorated (PCD) Loans (Details) - Blackhawk Acquisition [Member[ $ in Thousands	3 Months Ended
	Mar. 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

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Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]
Goodwill, Gross Carrying Value	$ 200,221	$ 200,221
Goodwill, Accumulated Amortization	3,760	3,760
Goodwill and Intangible Assets, Gross Carrying Value	309,733	309,733
Goodwill and Intangible Assets, Accumulated Amortization	55,493	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	37,520	34,966
Other Intangibles
Finite Lived Intangible Assets [Line Items]
Intangible Assets, Gross Carrying Value	26,552	26,552
Intangible Assets, Accumulated Amortization	$ 11,198	$ 10,620

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	Mar. 20, 2023	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023
Finite Lived Intangible Assets [Line Items]
Goodwill, net		$ 196,461	$ 196,461
Purdum, Gray, Ingledue, Beck, Inc.
Finite Lived Intangible Assets [Line Items]
Goodwill, net		5,951		$ 6,000
Blackhawk Bancorp, Inc
Finite Lived Intangible Assets [Line Items]
Goodwill, net		$ 50,097
Adjusted goodwill	$ 50,100

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Goodwill and Intangible Assets - Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023
Less purchase accounting adjustments:
Goodwill	$ 196,461	$ 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		$ 6,000
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 subordinated and jr subordinated debentures	3,707
Fair value of time deposits	2,311
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

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Goodwill and Intangible Assets - Intangible Assets Mortgage Servicing Rights (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]
Beginning balance	$ 6,859	$ 331	$ 331
Mortgage servicing rights acquired during period	0	0	7,070
Adjustment to valuation reserve	(33)	0	(8)
Mortgage servicing rights amortized	(364)	(17)	(524)
Interest only strip	(3)	(2)	(10)
Ending balance	$ 6,459	$ 312	$ 6,859

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Goodwill and Intangible Assets - Schedule of Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 3,497	$ 1,522
Core Deposit Intangibles
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	2,554	1,049
Customer List Intangibles
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	579	456
Mortgage Servicing Rights
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 364	$ 17

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Goodwill and Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Aggregate amortization expense:
For period 01/01/24 - 03/31/24	$ 3,497	$ 1,522
Estimated amortization expense:
For period 04/01/24 - 12/31/24	9,982
For year ended 12/31/25	12,158
For year ended 12/31/26	10,570
For year ended 12/31/27	9,351
For year ended 12/31/28	$ 8,183

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Repurchase Agreements and Other Borrowings - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Repurchase Agreements And Other Borrowings [Abstract]
Securities sold under agreements to repurchase	$ 210,719	$ 213,721
Securities sold under agreements to repurchase decrease	$ (3,000)
Securities sold under agreements to repurchase weighted average rate	3.13%
Gross FHLB borrowings	$ 238,600	$ 263,600

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Repurchase Agreements and Other Borrowings - Schedule of Securities Financing Transactions (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets Sold Under Agreements To Repurchase [Line Items]
Securities pledged to Repurchase Agreements	$ 210,719	$ 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	57,872	46,544
Mortgage-backed Securities: GSE Residential
Assets Sold Under Agreements To Repurchase [Line Items]
Securities pledged to Repurchase Agreements	$ 152,847	$ 167,177

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Repurchase Agreements and Other Borrowings - Federal Home Loan Bank, Advances (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 238,600,000	$ 263,600,000
Interest Rate 4.69% - Maturity Date May 10, 2024
FHLB Advances [Abstract]
Federal Home Loan Bank Advances	$ 25,000,000
Federal Home Loan Bank Advances, Term (in years)	1 year 6 months
Federal Home Loan Bank, Advances, Interest Rate	4.69%
Federal Home Loan Bank, Advances, Maturity Date	May 10, 2024
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 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 3.67% - Maturity Date June 15, 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	3.67%
Federal Home Loan Bank, Advances, Maturity Date	Jun. 15, 2028
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 3.95% - 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	3.95%
Federal Home Loan Bank, Advances, Maturity Date	Jun. 29, 2028
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

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Fair Value of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Available-for-sale securities:
Total available-for-sale securities	$ 1,139,427,000	$ 1,171,572,000
Equity securities, at fair value	4,298,000	4,074,000
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies
Available-for-sale securities:
Total available-for-sale securities	207,320,000	211,656,000
Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	282,570,000	288,616,000
Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	581,004,000	602,300,000
Other Securities
Available-for-sale securities:
Total available-for-sale securities	68,533,000	69,000,000
Fair Value, Recurring
Available-for-sale securities:
Total available-for-sale securities	1,139,427,000	1,171,572,000
Equity securities, at fair value	4,298,000	4,074,000
Loans held for sale, fair value	4,817,000	4,980,000
Derivative assets: interest rate swaps	3,539,000	3,166,000
Total assets	1,152,081,000	1,183,792,000
Derivative liabilities: interest swaps	2,435,000	2,217,000
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	207,320,000	211,656,000
Fair Value, Recurring | Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	282,570,000	288,616,000
Fair Value, Recurring | Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	581,004,000	602,300,000
Fair Value, Recurring | Other Securities
Available-for-sale securities:
Total available-for-sale securities	68,533,000	69,000,000
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	4,298,000	4,074,000
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	4,298,000	4,074,000
Loans held for sale, fair value	0	0
Derivative assets: interest rate swaps	0	0
Total assets	4,298,000	4,074,000
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	1,133,462,000	1,165,409,000
Equity securities, at fair value	0	0
Loans held for sale, fair value	4,817,000	4,980,000
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring
Available-for-sale securities:
Total available-for-sale securities	1,133,462,000	1,165,409,000
Equity securities, at fair value	0	0
Loans held for sale, fair value	4,817,000	4,980,000
Derivative assets: interest rate swaps	3,539,000	3,166,000
Total assets	1,141,818,000	1,173,555,000
Derivative liabilities: interest swaps	2,435,000	2,217,000
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	207,320,000	211,656,000
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Obligations of States and Political Subdivisions
Available-for-sale securities:
Total available-for-sale securities	282,570,000	288,616,000
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Mortgage-backed Securities
Available-for-sale securities:
Total available-for-sale securities	581,004,000	602,300,000
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Other Securities
Available-for-sale securities:
Total available-for-sale securities	62,568,000	62,837,000
Significant Unobservable Inputs (Level 3)
Available-for-sale securities:
Total available-for-sale securities	5,965,000	6,163,000
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	5,965,000	6,163,000
Equity securities, at fair value	0	0
Loans held for sale, fair value	0	0
Derivative assets: interest rate swaps	0	0
Total assets	5,965,000	6,163,000
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	$ 5,965,000	$ 6,163,000

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
	Mar. 31, 2024	Mar. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 6,163	$ 10,000
Transfers into Level 3	1	10
Maturities	(199)
Ending balance	5,965	10,010
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	6,163	10,000
Transfers into Level 3	1	10
Maturities	(199)
Ending balance	$ 5,965	$ 10,010

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Fair Value of Assets and Liabilities - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Allowance for Credit Losses	$ 308,000
Other real estate owned	1,346,000		$ 1,163,000
Mortgage Servicing Rights
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Finite-lived intangible assets, net	6,459,000	$ 312,000	6,859,000	$ 331,000
Mortgage servicing rights (MSR) impairment (recovery)	(33,000)	$ 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	1,300,000
Fair value of loans with a specific allowance	1,000,000
Allowance for Credit Losses	324,000
Fair Value, Nonrecurring | Carrying Amount
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned	1,300,000
Fair Value, Nonrecurring | Fair Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Other real estate owned	$ 0

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Fair Value of Assets and Liabilities - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Collateral Dependent Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	$ 985	$ 1,028
Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	0	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	985	1,028
Significant Unobservable Inputs (Level 3) | Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	$ 0	$ 24

XML

Fair Value of Assets and Liabilities - Significant Unobservable Inputs Used in Valuation of Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 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	$ 985	$ 1,028
Fair Value, Nonrecurring | Collateral Dependent Loans | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	985	1,028
Fair Value, Nonrecurring | Foreclosed Assets Held-for-sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, Fair Value	$ 0	$ 24

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Fair Value of Assets and Liabilities - Summary of Estimated Fair Values of Company Financial Instruments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Financial assets
Total available-for-sale securities	$ 1,139,427,000	$ 1,171,572,000
Held-to-maturity securities	2,282,000	2,286,000
Equity securities, at fair value	4,298,000	4,074,000
Fair Value, Inputs, Level 1 [Member]
Financial assets
Cash and due from banks	355,686,000	134,082,000
Federal funds sold	15,000	8,982,000
Certificates of deposit investments	0	0
Total available-for-sale securities	0	0
Held-to-maturity securities	2,282,000	2,286,000
Equity securities, at fair value	4,298,000	4,074,000
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	3,745,000	1,470,000
Total available-for-sale securities	1,133,462,000	1,165,409,000
Held-to-maturity securities	0	0
Equity securities, at fair value	0	0
Loans held for sale	4,817,000	4,980,000
Loans net of allowance for credit losses	0	0
Interest receivable	37,667,000	35,082,000
Federal Reserve Bank stock	19,855,000	19,855,000
Federal Home Loan Bank stock	8,740,000	9,758,000
Financial liabilities
Deposits	5,235,110,000	5,076,066,000
Securities sold under agreements to repurchase	210,719,000	213,714,000
Interest payable	6,318,000	5,437,000
Federal Home Loan Bank borrowings	234,678,000	261,206,000
Fair Value, Inputs, Level 2 [Member] | Subordinated Debt
Financial liabilities
Subordinated debt, net	102,398,000	102,018,000
Fair Value, Inputs, Level 2 [Member] | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	21,408,000	21,524,000
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	5,965,000	6,163,000
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	5,061,373,000	5,235,525,000
Interest receivable	0	0
Federal Reserve Bank stock	0	0
Federal Home Loan Bank stock	0	0
Financial liabilities
Deposits	930,726,000	966,211,000
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	355,686,000	134,082,000
Federal funds sold	15,000	8,982,000
Certificates of deposit investments	3,745,000	1,470,000
Total available-for-sale securities	1,139,427,000	1,171,572,000
Held-to-maturity securities	2,282,000	2,286,000
Equity securities, at fair value	4,298,000	4,074,000
Loans held for sale	4,817,000	4,980,000
Loans net of allowance for credit losses	5,426,542,000	5,506,910,000
Interest receivable	37,667,000	35,082,000
Federal Reserve Bank stock	19,855,000	19,855,000
Federal Home Loan Bank stock	8,740,000	9,758,000
Financial liabilities
Deposits	6,242,936,000	6,123,659,000
Securities sold under agreements to repurchase	210,719,000	213,721,000
Interest payable	6,318,000	5,437,000
Federal Home Loan Bank borrowings	238,761,000	263,787,000
Carrying Amount | Subordinated Debt
Financial liabilities
Subordinated debt, net	106,862,000	106,755,000
Carrying Amount | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	24,113,000	24,058,000
Fair Value
Financial assets
Cash and due from banks	355,686,000	134,082,000
Federal funds sold	15,000	8,982,000
Certificates of deposit investments	3,745,000	1,470,000
Total available-for-sale securities	1,139,427,000	1,171,572,000
Held-to-maturity securities	2,282,000	2,286,000
Equity securities, at fair value	4,298,000	4,074,000
Loans held for sale	4,817,000	4,980,000
Loans net of allowance for credit losses	5,061,373,000	5,235,525,000
Interest receivable	37,667,000	35,082,000
Federal Reserve Bank stock	19,855,000	19,855,000
Federal Home Loan Bank stock	8,740,000	9,758,000
Financial liabilities
Deposits	6,165,836,000	6,042,277,000
Securities sold under agreements to repurchase	210,719,000	213,714,000
Interest payable	6,318,000	5,437,000
Federal Home Loan Bank borrowings	234,678,000	261,206,000
Fair Value | Subordinated Debt
Financial liabilities
Subordinated debt, net	102,398,000	102,018,000
Fair Value | Junior Subordinated Debentures
Financial liabilities
Subordinated debt, net	$ 21,408,000	$ 21,524,000

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Business Combinations - Additional Information (Details) - USD ($)		3 Months Ended
	Mar. 20, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)		$ 4		$ 4
Allowance for credit losses		$ 67,936,000	$ 58,223,000	$ 68,675,000	$ 59,093,000
Blackhawk Bancorp, Inc
Business Acquisition [Line Items]
Percentage of issued and outstanding shares acquired	100.00%
Common stock, par value (in dollars per share)	$ 0.01
Share Price	$ 4
Consideration paid in cash	$ 1,928
Consideration paid in shares	3,290,222
Conversion of common stock	1.15
Goodwill acquired during period	$ 50,100,000
Pre-tax of acquisition costs		$ 2,200,000	$ 93,000
Allowance for credit losses for loans identified as PCD	3,791,000
Purchased credit deteriorated loans	105,983,000
Blackhawk Bancorp, Inc | ASU 2016-13
Business Acquisition [Line Items]
Allowance for credit losses	3,800,000
Allowance for credit losses on non-PCD loans	$ 618,330,000
Blackhawk Bancorp, Inc | Core Deposit Intangibles
Business Acquisition [Line Items]
Intangible asset estimated useful life	10 years
Blackhawk Bancorp, Inc | Fair Value Adjustments
Business Acquisition [Line Items]
Loans, net	$ 722,866,000
Change in acquired time deposits	$ 1,194,972,000

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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 Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Mar. 20, 2023	Mar. 31, 2024	Dec. 31, 2023
Assets
Goodwill		$ 196,461,000	$ 196,461,000
Blackhawk Bancorp, Inc
Assets
Goodwill		$ 50,097,000
Consideration paid
Consideration payable in cash	$ 1,928
Total consideration paid	93,510,000
Blackhawk Bancorp, Inc | Fair Value Adjustments
Assets
Cash and due from banks	55,600,000
Loans held for sale	3,222,000
Loans, net	722,866,000
Investment securities	377,969,000
Short-term investments	869,000
FHLB stock	1,737,000
Premises and equipment	12,366,000
Accrued interest receivable	4,029,000
Prepaid expenses	1,182,000
Other assets	20,742,000
Core deposit intangible	34,590,000
Income tax receivable	2,077,000
Deferred tax asset	22,152,000
Mortgage servicing rights	7,031,000
Total assets acquired	1,266,432,000
Liabilities
Deposits	1,194,972,000
Subordinated and Junior Subordinated debt	16,448,000
Accrued interest payable	1,091,000
Accrued and other liabilities	10,508,000
Total liabilities assumed	1,223,019,000
Net assets acquired	43,413,000
Consideration paid
Total consideration paid	93,510,000
Goodwill	$ 50,097,000

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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 $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Business Acquisition [Line Items]
Net interest income	$ 57,640
Provision for credit losses	(402)
Non-interest income	25,664
Non-interest expense	55,808
Income before taxes	27,898
Income tax expense	6,395
Net income	$ 21,503
Earnings per share
Basic | $ / shares	$ 0.9
Diluted | $ / shares	$ 0.9
Basic weighted average shares o/s | shares	23,782,476
Diluted weighted average shares o/s | shares	23,854,194

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Leases - Additional Information (Details)	Mar. 31, 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	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Leases, Operating [Abstract]
Operating lease right-of-use assets	$ 14,318	$ 14,306	$ 15,092
Operating lease liabilities	$ 14,624	$ 14,615	$ 15,353
Weighted-average remaining lease term (in years)	4 years 9 months 18 days	4 years 10 months 24 days	5 years 7 months 6 days
Weighted-average discount rate	3.22%	3.21%	2.68%

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Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2024	$ 2,444
2025	2,686
2026	2,509
2027	2,287
2028	1,693
Thereafter	4,818
Total lease payments	16,437
Less imputed interest	(1,813)
Total lease liability	$ 14,624	$ 14,615	$ 15,353

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Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lease, Cost [Abstract]
Operating lease cost	$ 846	$ 753
Short-term lease cost	35	30
Variable lease cost	138	223
Total lease cost	1,019	1,006
Income from subleases	(104)	(94)
Net lease cost	$ 915	$ 912

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Leases - Summary of Operating Lease Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating cash flows from operating leases	$ 836	$ 781

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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	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Derivative, Weighted Average Remaining Maturity (Years)	5 years 1 month 6 days	5 years 3 months 18 days
Derivative Liability, Notional Amount	$ 12,910	$ 12,976
Derivative Liability, Estimated Value	$ (2,435)	$ (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
	Mar. 31, 2024	Mar. 31, 2023
Derivative [Line Items]
Gain (Loss) on Derivative	$ 155	$ (325)
Gain (Loss) on Hedged Item	$ (155)	$ 325
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest and fees on loans	Interest and fees on loans

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Derivatives - Summary of Hedged Instrument (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Hedged Instruments [Abstract]
Carrying Amount of the Hedged Asset	$ 11,807
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	$ (1,104)

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Derivatives - Summary of Non Hedge Instruments (Details) - Not Designated as Hedging Instrument - Interest Rate Swap Agreements $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Other Assets
Derivative [Line Items]
Derivative, Weighted Average Remaining Maturity (Years)	4 years 9 months 18 days
Derivative Assets, Notional Amount	$ 30,280
Derivative Assets, Estimated Value	$ 3,539
Other Liabilities
Derivative [Line Items]
Derivative, Weighted Average Remaining Maturity (Years)	4 years 9 months 18 days
Derivative Liability, Notional Amount	$ 30,280
Derivative Liability, Estimated Value	$ (3,539)