ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Tables)

3 Months Ended

Mar. 31, 2025

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Schedule of Activity in the Allowance for Credit Losses by Portfolio Segment

The following tables present the activity in the allowance for credit losses by portfolio segment for the periods shown:

(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended March 31, 2025
Beginning balance, January 1	$	45,539	$	30,865	$	3,541	$	743	$	3,358	$	1,531	$	383	$	85,960
Provision for credit losses	6,741		(423)		(41)		(20)		124		343		76		6,800
Loans charged-off	(10)		0		0		0		(24)		(474)		0		(508)
Recoveries	32		26		0		0		6		117		0		181
Net loans (charged-off) recovered	22		26		0		0		(18)		(357)		0		(327)
Ending balance	$	52,302	$	30,468	$	3,500	$	723	$	3,464	$	1,517	$	459	$	92,433

(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended March 31, 2024
Beginning balance, January 1	$	30,338	$	31,335	$	4,150	$	1,129	$	3,474	$	1,174	$	372	$	71,972
Provision for credit losses	542		717		(38)		(107)		21		256		129		1,520
Loans charged-off	(194)		0		0		0		0		(310)		0		(504)
Recoveries	34		26		0		0		23		109		0		192
Net loans (charged-off) recovered	(160)		26		0		0		23		(201)		0		(312)
Ending balance	$	30,720	$	32,078	$	4,112	$	1,022	$	3,518	$	1,229	$	501	$	73,180

Schedule of Risk Category of Loans by Loan Segment and Origination Date

The following table summarizes the risk category of loans by loan segment and year of origination as of March 31, 2025:

(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	3,747	$	1,550	$	103	$	1,550	$	1,192	$	528	$	8,670	$	582,436	$	591,106
Special Mention	0		0		997		0		0		0		997		51,128		52,125
Substandard	0		0		0		931		0		259		1,190		28,978		30,168
Doubtful	0		0		3,015		39,994		0		0		43,009		0		43,009
Total	3,747		1,550		4,115		42,475		1,192		787		53,866		662,542		716,408
Working capital lines of credit loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Non-working capital loans:
Pass	26,773		157,729		148,366		156,661		52,864		54,564		596,957		173,657		770,614
Special Mention	892		7,093		2,324		2,039		1,607		896		14,851		6,419		21,270
Substandard	314		0		3,063		1,594		105		3,946		9,022		401		9,423
Doubtful	0		0		0		0		21		363		384		0		384
Not Rated	512		1,226		1,524		1,028		302		295		4,887		0		4,887
Total	28,491		166,048		155,277		161,322		54,899		60,064		626,101		180,477		806,578
Non-working capital loans:
Current period gross write offs	0		0		0		0		0		0		0		10		10
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	16,094		24,839		58,263		40,754		24,140		0		164,090		458,160		622,250
Total	16,094		24,839		58,263		40,754		24,140		0		164,090		458,160		622,250
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	29,473		99,197		124,885		118,041		140,991		222,158		734,745		37,777		772,522
Special Mention	300		6,153		2,621		14,609		0		3,056		26,739		0		26,739
Substandard	1,737		315		311		0		1,349		1,454		5,166		0		5,166
Total	31,510		105,665		127,817		132,650		142,340		226,668		766,650		37,777		804,427
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Nonowner occupied loans:
Pass	26,755		156,586		116,164		150,467		104,684		170,940		725,596		107,705		833,301

(dollars in thousands)	2025	2024	2023	2022	2021	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Special Mention	0	588	15,506	106	0	0	16,200	1,930	18,130
Total	26,755	157,174	131,670	150,573	104,684	170,940	741,796	109,635	851,431
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	38,669	70,356	72,075	7,851	52,921	34,930	276,802	62,556	339,358
Special Mention	0	0	0	303	0	0	303	0	303
Total	38,669	70,356	72,075	8,154	52,921	34,930	277,105	62,556	339,661
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	3,602	15,147	18,955	33,162	22,760	42,785	136,411	17,313	153,724
Special Mention	2,000	122	205	0	0	0	2,327	0	2,327
Substandard	0	0	0	0	0	67	67	0	67
Total	5,602	15,269	19,160	33,162	22,760	42,852	138,805	17,313	156,118
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	885	15,418	25,757	21,102	23,557	21,345	108,064	118,430	226,494
Special Mention	0	0	0	0	0	0	0	1,251	1,251
Total	885	15,418	25,757	21,102	23,557	21,345	108,064	119,681	227,745
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	3,424	7,405	16,598	28,944	3,202	15,667	75,240	17,743	92,983
Special Mention	0	0	0	0	0	1,842	1,842	0	1,842
Total	3,424	7,405	16,598	28,944	3,202	17,509	77,082	17,743	94,825
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans:
Pass	4,697	11,361	8,085	8,666	11,024	10,284	54,117	6,821	60,938

(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Closed end first mortgage loans (continued):
Special Mention	0		121		223		163		64		0		571		0		571
Substandard	0		0		263		317		89		611		1,280		0		1,280
Not Rated	6,298		29,141		53,471		46,886		32,157		34,747		202,700		0		202,700
Total	10,995		40,623		62,042		56,032		43,334		45,642		258,668		6,821		265,489
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		24		24		0		24
Open end and junior lien loans:
Pass	128		561		726		0		212		5		1,632		9,973		11,605
Special Mention	0		0		0		0		0		302		302		0		302
Substandard	0		0		103		0		12		23		138		81		219
Not Rated	5,963		18,706		14,296		16,205		3,869		1,847		60,886		147,016		207,902
Total	6,091		19,267		15,125		16,205		4,093		2,177		62,958		157,070		220,028
Open end and junior lien loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Residential construction loans:
Not Rated	130		9,932		762		2,014		1,361		2,069		16,268		0		16,268
Total	130		9,932		762		2,014		1,361		2,069		16,268		0		16,268
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	303		78		963		168		93		0		1,605		22,044		23,649
Special Mention	0		0		0		475		0		131		606		0		606
Substandard	0		111		120		84		12		38		365		0		365
Not Rated	4,218		21,526		20,061		10,691		5,990		4,828		67,314		10,059		77,373
Total	4,521		21,715		21,144		11,418		6,095		4,997		69,890		32,103		101,993
Other consumer loans:
Current period gross write offs	0		20		82		8		58		0		168		306		474
Total Loans	$	176,914	$	655,261	$	709,805	$	704,805	$	484,578	$	629,980	$	3,361,343	$	1,861,878	$	5,223,221
Total period gross write offs	$	0	$	20	$	82	$	8	$	58	$	24	$	192	$	316	$	508

The following table summarizes the risk category of loans by loan segment and year of origination as of December 31, 2024:

(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	1,599	$	114	$	1,640	$	1,647	$	651	$	0	$	5,651	$	525,179	$	530,830
Special Mention	0		0		0		0		0		0		0		48,301		48,301
Substandard	0		0		933		0		195		219		1,347		25,878		27,225
Doubtful	0		3,090		39,994		0		0		0		43,084		0		43,084
Total	1,599		3,204		42,567		1,647		846		219		50,082		599,358		649,440
Working capital lines of credit loans:
Current period gross write offs	0		0		94		0		0		0		94		136		230
Non-working capital loans:
Pass	151,920		157,276		173,274		58,591		32,909		28,582		602,552		164,106		766,658
Special Mention	3,901		2,614		2,024		1,637		393		1,894		12,463		6,491		18,954
Substandard	0		2,986		1,598		107		4,142		584		9,417		406		9,823
Doubtful	0		0		0		21		386		0		407		0		407
Not Rated	1,297		1,657		1,149		395		395		23		4,916		0		4,916
Total	157,118		164,533		178,045		60,751		38,225		31,083		629,755		171,003		800,758
Non-working capital loans:
Current period gross write offs	0		383		0		542		179		44		1,148		237		1,385
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	23,264		69,737		43,228		2,566		0		0		138,795		426,577		565,372
Special Mention	603		0		0		0		0		0		603		0		603
Total	23,867		69,737		43,228		2,566		0		0		139,398		426,577		565,975
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	98,847		138,299		120,191		143,642		109,451		129,051		739,481		35,003		774,484
Special Mention	6,295		2,728		14,777		0		619		2,488		26,907		0		26,907
Substandard	318		318		0		3,101		1,457		0		5,194		0		5,194
Total	105,460		141,345		134,968		146,743		111,527		131,539		771,582		35,003		806,585
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		840		840		0		840

(dollars in thousands)	2024	2023	2022	2021	2020	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Pass	152,963	118,517	168,387	101,064	119,612	77,497	738,040	110,441	848,481
Special Mention	0	15,650	108	5,868	0	0	21,626	1,895	23,521
Total	152,963	134,167	168,495	106,932	119,612	77,497	759,666	112,336	872,002
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	70,497	61,679	11,708	52,995	29,177	9,794	235,850	108,486	344,336
Special Mention	0	0	307	0	0	0	307	0	307
Total	70,497	61,679	12,015	52,995	29,177	9,794	236,157	108,486	344,643
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	14,574	21,241	29,601	23,043	25,192	18,312	131,963	24,249	156,212
Special Mention	122	209	0	0	0	0	331	0	331
Substandard	0	0	0	0	0	71	71	0	71
Total	14,696	21,450	29,601	23,043	25,192	18,383	132,365	24,249	156,614
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	15,945	26,704	21,611	24,374	21,446	1,450	111,530	118,090	229,620
Special Mention	0	0	0	0	0	0	0	1,275	1,275
Total	15,945	26,704	21,611	24,374	21,446	1,450	111,530	119,365	230,895
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	6,639	17,137	29,985	3,397	11,310	5,544	74,012	19,609	93,621
Special Mention	0	0	0	0	0	1,872	1,872	0	1,872
Total	6,639	17,137	29,985	3,397	11,310	7,416	75,884	19,609	95,493
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans:
Pass	11,104	8,511	9,274	11,278	6,252	4,685	51,104	4,299	55,403

(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Closed end first mortgage loans (continued):
Special Mention	122		226		165		66		0		0		579		0		579
Substandard	0		83		319		90		0		629		1,121		0		1,121
Not Rated	28,706		55,641		47,355		34,173		13,543		22,396		201,814		0		201,814
Total	39,932		64,461		57,113		45,607		19,795		27,710		254,618		4,299		258,917
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Open end and junior lien loans:
Pass	574		738		0		438		0		5		1,755		10,090		11,845
Special Mention	0		0		0		0		309		0		309		0		309
Substandard	0		104		0		15		0		81		200		118		318
Not Rated	21,929		16,134		18,053		4,660		644		2,894		64,314		139,351		203,665
Total	22,503		16,976		18,053		5,113		953		2,980		66,578		149,559		216,137
Open end and junior lien loans:
Current period gross write offs	0		0		79		0		0		0		79		15		94
Residential construction loans:
Not Rated	10,030		1,154		2,045		1,386		759		1,348		16,722		0		16,722
Total	10,030		1,154		2,045		1,386		759		1,348		16,722		0		16,722
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	79		971		234		109		0		0		1,393		20,742		22,135
Special Mention	0		0		475		0		157		0		632		0		632
Substandard	0		128		54		76		17		0		275		0		275
Not Rated	23,508		22,250		11,824		6,688		3,743		1,782		69,795		10,930		80,725
Total	23,587		23,349		12,587		6,873		3,917		1,782		72,095		31,672		103,767
Other consumer loans:
Current period gross write offs	49		303		236		33		0		26		647		272		919
Total loans	$	644,836	$	745,896	$	750,313	$	481,427	$	382,759	$	311,201	$	3,316,432	$	1,801,516	$	5,117,948
Total current period gross write offs	$	49	$	686	$	409	$	575	$	179	$	910	$	2,808	$	660	$	3,468

Schedule of Aging of the Amortized Cost Basis in Past Due Loans

The following table presents the aging of the amortized cost basis in past due loans as of March 31, 2025 by class of loans and loans past due 90 days or more and still accruing by class of loan:

(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	669,137	$	997	$	0	$	670,134	$	46,274	$	567	$	716,408
Non-working capital loans	798,635		515		0		799,150		7,428		156		806,578
Commercial real estate and multi-family residential loans:
Construction and land development loans	622,250		0		0		622,250		0		0		622,250
Owner occupied loans	802,662		0		0		802,662		1,765		311		804,427
Nonowner occupied loans	851,431		0		0		851,431		0		0		851,431
Multifamily loans	339,661		0		0		339,661		0		0		339,661
Agri-business and agricultural loans:
Loans secured by farmland	156,038		13		0		156,051		67		0		156,118
Loans for agricultural production	227,745		0		0		227,745		0		0		227,745
Other commercial loans	94,825		0		0		94,825		0		0		94,825
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	261,921		2,282		7		264,210		1,279		647		265,489
Open end and junior lien loans	219,696		113		0		219,809		219		219		220,028
Residential construction loans	16,268		0		0		16,268		0		0		16,268
Other consumer loans	101,239		389		0		101,628		365		23		101,993
Total	$	5,161,508	$	4,309	$	7	$	5,165,824	$	57,397	$	1,923	$	5,223,221

The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2024 by class of loans and loans past due 90 days or more and still accruing by class of loan:

(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	603,016	$	1,082	$	0	$	604,098	$	45,342	$	594	$	649,440
Non-working capital loans	792,577		663		3		793,243		7,515		37		800,758
Commercial real estate and multi-family residential loans:
Construction and land development loans	565,975		0		0		565,975		0		0		565,975
Owner occupied loans	804,810		0		0		804,810		1,775		318		806,585
Nonowner occupied loans	872,002		0		0		872,002		0		0		872,002
Multifamily loans	344,643		0		0		344,643		0		0		344,643
Agri-business and agricultural loans:
Loans secured by farmland	156,543		0		0		156,543		71		0		156,614
Loans for agricultural production	230,895		0		0		230,895		0		0		230,895
Other commercial loans	95,493		0		0		95,493		0		0		95,493
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	256,486		1,284		26		257,796		1,121		665		258,917
Open end and junior lien loans	215,505		314		0		215,819		318		318		216,137
Residential construction loans	16,722		0		0		16,722		0		0		16,722
Other consumer loans	102,565		927		0		103,492		275		17		103,767
Total	$	5,057,232	$	4,270	$	29	$	5,061,531	$	56,417	$	1,949	$	5,117,948

Schedule of Amortized Cost Basis of Collateral Dependent Loans

The following tables present the amortized cost basis of collateral dependent loans by class of loan as of:

	March 31, 2025
(dollars in thousands)	Real Estate		General Business  Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	125	$	65,695	$	446	$	66,266
Non-working capital loans	1,759		6,463		11		8,233
Commercial real estate and multi-family residential loans:
Owner occupied loans	315		3,501		0		3,816
Agri-business and agricultural loans:
Loans secured by farmland	0		67		0		67
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,279		0		0		1,279
Open end and junior lien loans	222		0		0		222
Other consumer loans	0		0		359		359
Total	$	3,700	$	75,726	$	816	$	80,242

	December 31, 2024
(dollars in thousands)	Real Estate		General Business  Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	50	$	64,023	$	447	$	64,520
Non-working capital loans	1,891		6,585		19		8,495
Commercial real estate and multi-family residential loans:
Owner occupied loans	318		3,512		0		3,830
Agri-business and agricultural loans:
Loans secured by farmland	0		71		0		71
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,121		0		0		1,121
Open end and junior lien loans	318		0		0		318
Other consumer loans	0		0		272		272
Total	$	3,698	$	74,191	$	738	$	78,627