ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

9 Months Ended

Sep. 30, 2025

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

The Company maintains an allowance for credit losses to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management’s judgment, should be charged against the allowance. A provision for credit losses is taken based on management’s ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control.

The level of credit loss provision is influenced by growth in the overall loan portfolio, emerging market risk, emerging concentration risk, commercial loan focus and large credit concentration, new industry lending activity, general economic conditions and historical loss analysis. In addition, management gives consideration to changes in the facts and circumstances

of watch list credits, which includes the security position of the borrower, in determining the appropriate level of the credit loss provision. Furthermore, management’s overall view on credit quality is a factor in the determination of the provision.

The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along with current and forecasted economic conditions that may affect borrowers’ ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default (“PD/LGD”) model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification status or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a default rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee’s Summary of Economic Projections, and other environmental factors based on the risks present for each portfolio segment. These environmental factors include consideration of the following: levels of, and trends in, delinquencies and nonperforming loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover probable losses inherent in the loan portfolio.

Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other and a consensus is reached by credit administration and the loan officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer’s cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring.

Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool’s probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool, which is updated at least annually. The historical loss rates are supplemented with consideration of economic conditions and portfolio trends.

Due to the imprecise nature of estimating the allowance for credit losses, the Company’s allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company’s judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income.

For off balance sheet credit exposures outlined in the ASU at 326-20-30-11, it is the Company’s position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded.

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 September 30, 2025
Beginning balance, July 1	$	25,882	$	31,082	$	3,299	$	720	$	3,590	$	1,579	$	400	$	66,552
Provision for credit losses	1,447		(197)		(80)		(29)		460		428		(29)		2,000
Loans charged-off	(222)		0		0		0		(4)		(347)		0		(573)
Recoveries	42		27		0		0		16		104		0		189
Net loans (charged-off) recovered	(180)		27		0		0		12		(243)		0		(384)
Ending balance	$	27,149	$	30,912	$	3,219	$	691	$	4,062	$	1,764	$	371	$	68,168

(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 September 30, 2024
Beginning balance, July 1	$	39,161	$	31,687	$	3,668	$	820	$	3,586	$	1,390	$	399	$	80,711
Provision for credit losses	3,498		(355)		(254)		(86)		(16)		308		(36)		3,059
Loans charged-off	(72)		0		0		0		(3)		(156)		0		(231)
Recoveries	18		26		0		0		4		40		0		88
Net loans (charged-off) recovered	(54)		26		0		0		1		(116)		0		(143)
Ending balance	$	42,605	$	31,358	$	3,414	$	734	$	3,571	$	1,582	$	363	$	83,627

(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
Nine Months Ended September 30, 2025
Beginning balance, January 1	$	45,539	$	30,865	$	3,541	$	743	$	3,358	$	1,531	$	383	$	85,960
Provision for credit losses	10,335		(32)		(322)		(52)		878		1,005		(12)		11,800
Loans charged-off	(28,848)		0		0		0		(226)		(1,119)		0		(30,193)
Recoveries	123		79		0		0		52		347		0		601
Net loans (charged-off) recovered	(28,725)		79		0		0		(174)		(772)		0		(29,592)
Ending balance	$	27,149	$	30,912	$	3,219	$	691	$	4,062	$	1,764	$	371	$	68,168

(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
Nine Months Ended September 30, 2024
Beginning balance, January 1	$	30,338	$	31,335	$	4,150	$	1,129	$	3,474	$	1,174	$	372	$	71,972
Provision for credit losses	12,452		784		(736)		(395)		73		890		(9)		13,059
Loans charged-off	(278)		(840)		0		0		(25)		(668)		0		(1,811)
Recoveries	93		79		0		0		49		186		0		407
Net loans (charged-off) recovered	(185)		(761)		0		0		24		(482)		0		(1,404)
Ending balance	$	42,605	$	31,358	$	3,414	$	734	$	3,571	$	1,582	$	363	$	83,627

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000.

The Company uses the following definitions for risk ratings:

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

Substandard. Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company 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 characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans are considered to be "Pass" rated when they are reviewed as part of the previously described process and do not meet the criteria above, which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans, which are evaluated individually and listed with “Not Rated” loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status.

The following table summarizes the risk category of loans by loan segment and year of origination as of September 30, 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	$	3,230	$	1,453	$	41	$	1,369	$	1,109	$	400	$	7,602	$	632,039	$	639,641
Special Mention	0		0		0		0		0		0		0		40,541		40,541
Substandard	0		0		1,994		926		194		422		3,536		25,717		29,253
Doubtful	0		0		0		0		0		0		0		0		0
Total	3,230		1,453		2,035		2,295		1,303		822		11,138		698,297		709,435
Working capital lines of credit loans:
Current period gross write offs	0		0		0		28,607		0		12		28,619		45		28,664
Non-working capital loans:
Pass	139,759		138,535		110,236		128,247		42,929		30,873		590,579		184,237		774,816
Special Mention	2,904		7,777		92		5,066		1,145		623		17,607		3,442		21,049
Substandard	553		330		2,106		1,553		105		3,923		8,570		395		8,965
Doubtful	0		0		0		0		6		91		97		0		97
Not Rated	733		346		858		710		155		203		3,005		0		3,005
Total	143,949		146,988		113,292		135,576		44,340		35,713		619,858		188,074		807,932
Non-working capital loans:
Current period gross write offs	1		2		0		0		0		0		3		181		184
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	20,736		38,696		14,779		22,015		731		0		96,957		474,820		571,777
Special Mention	1,242		0		0		0		0		0		1,242		0		1,242
Total	21,978		38,696		14,779		22,015		731		0		98,199		474,820		573,019
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	128,715		101,726		94,865		116,945		132,676		170,689		745,616		34,205		779,821
Special Mention	1,331		109		2,361		14,863		0		1,906		20,570		0		20,570
Substandard	0		309		295		0		1,350		1,446		3,400		0		3,400
Total	130,046		102,144		97,521		131,808		134,026		174,041		769,586		34,205		803,791
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0

(dollars in thousands)	2025	2024	2023	2022	2021	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Pass	85,779	131,308	109,516	138,120	100,613	166,703	732,039	116,959	848,998
Special Mention	0	0	11,414	103	0	0	11,517	1,954	13,471
Total	85,779	131,308	120,930	138,223	100,613	166,703	743,556	118,913	862,469
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	138,409	55,109	86,793	21,567	31,832	33,257	366,967	45,486	412,453
Special Mention	0	0	0	295	0	0	295	0	295
Total	138,409	55,109	86,793	21,862	31,832	33,257	367,262	45,486	412,748
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	18,873	13,886	16,686	31,934	21,064	34,144	136,587	14,786	151,373
Special Mention	1,986	118	197	0	34	148	2,483	0	2,483
Substandard	0	0	0	0	0	55	55	0	55
Total	20,859	14,004	16,883	31,934	21,098	34,347	139,125	14,786	153,911
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	3,226	14,310	22,508	19,401	22,026	13,389	94,860	83,279	178,139
Special Mention	0	0	666	265	0	4	935	7,079	8,014
Substandard	0	0	0	13	0	0	13	0	13
Total	3,226	14,310	23,174	19,679	22,026	13,393	95,808	90,358	186,166
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	4,284	6,405	15,756	26,873	2,763	13,530	69,611	20,353	89,964
Special Mention	0	0	0	0	0	1,783	1,783	0	1,783
Total	4,284	6,405	15,756	26,873	2,763	15,313	71,394	20,353	91,747
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0

(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Consumer 1-4 family mortgage loans (continued):
Closed end first mortgage loans:
Pass	11,627		10,766		7,293		7,501		10,510		5,790		53,487		4,711		58,198
Special Mention	191		119		218		158		62		0		748		0		748
Substandard	24		331		236		443		89		839		1,962		0		1,962
Not Rated	27,506		27,780		51,600		43,186		30,020		32,227		212,319		0		212,319
Total	39,348		38,996		59,347		51,288		40,681		38,856		268,516		4,711		273,227
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	118		537		697		0		198		4		1,554		10,132		11,686
Special Mention	289		0		0		0		0		0		289		0		289
Substandard	1,994		7		101		0		8		0		2,110		54		2,164
Not Rated	21,652		14,734		11,446		12,137		2,370		1,338		63,677		165,575		229,252
Total	24,053		15,278		12,244		12,137		2,576		1,342		67,630		175,761		243,391
Open end and junior lien loans:
Current period gross write offs	0		0		0		29		2		22		53		149		202
Residential construction loans:
Not Rated	4,928		8,258		596		1,712		1,213		1,904		18,611		0		18,611
Total	4,928		8,258		596		1,712		1,213		1,904		18,611		0		18,611
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	286		0		947		136		29		0		1,398		31,817		33,215
Special Mention	0		0		0		475		0		26		501		0		501
Substandard	0		129		121		97		6		13		366		0		366
Not Rated	16,256		17,572		15,956		8,442		4,678		3,725		66,629		11,461		78,090
Total	16,542		17,701		17,024		9,150		4,713		3,764		68,894		43,278		112,172
Other consumer loans:
Current period gross write offs	4		154		265		140		58		0		621		498		1,119
Total Loans	$	636,631	$	590,650	$	580,374	$	604,552	$	407,915	$	519,455	$	3,339,577	$	1,909,042	$	5,248,619
Total period gross write offs	$	5	$	156	$	265	$	28,776	$	60	$	58	$	29,320	$	873	$	30,193

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

Nonaccrual and Past Due Loans:

The Company does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured.

The following table presents the aging of the amortized cost basis in past due loans as of September 30, 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	$	704,522	$	0	$	0	$	704,522	$	4,867	$	444	$	709,389
Non-working capital loans	800,376		46		0		800,422		7,556		103		807,978
Commercial real estate and multi-family residential loans:
Construction and land development loans	573,019		0		0		573,019		0		0		573,019
Owner occupied loans	801,880		170		0		802,050		1,741		0		803,791
Nonowner occupied loans	862,469		0		0		862,469		0		0		862,469
Multifamily loans	412,748		0		0		412,748		0		0		412,748
Agri-business and agricultural loans:
Loans secured by farmland	153,856		0		0		153,856		55		0		153,911
Loans for agricultural production	186,153		0		0		186,153		13		13		186,166
Other commercial loans	91,747		0		0		91,747		0		0		91,747
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	271,197		61		7		271,265		1,962		793		273,227
Open end and junior lien loans	240,938		289		0		241,227		2,164		155		243,391
Residential construction loans	18,611		0		0		18,611		0		0		18,611
Other consumer loans	111,390		415		0		111,805		367		6		112,172
Total	$	5,228,906	$	981	$	7	$	5,229,894	$	18,725	$	1,514	$	5,248,619

An insignificant amount of interest income was recognized on nonaccrual loans during the three and nine month periods ended September 30, 2025.

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

An insignificant amount of interest income was recognized on nonaccrual loans during the year ended December 31, 2024.

When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value.

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

	September 30, 2025
(dollars in thousands)	Real Estate		General Business  Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	536	$	22,945	$	638	$	24,119
Non-working capital loans	52		7,633		5		7,690
Commercial real estate and multi-family residential loans:
Owner occupied loans	309		1,741		0		2,050
Agri-business and agricultural loans:
Loans secured by farmland	0		55		0		55
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,962		0		0		1,962
Open end and junior lien loans	2,164		0		0		2,164
Other consumer loans	0		0		283		283
Total	$	5,023	$	32,374	$	926	$	38,323

	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

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The allowance for credit losses incorporates an estimate of lifetime expected credit losses using historical loss information. The Company uses a probability of default/loss given default model to determine an estimate which is recorded for each asset upon origination. Occasionally, the Company has reason to modify certain terms of loans for borrowers experiencing financial distress by providing the following forms of relief: forgiveness of loan principal, extension of repayment terms, interest rate reduction or an other than insignificant payment delay. The Company can make any or all of these types of concessions as part of such modifications. Since an estimate for historical losses is already included as a component of the allowance for credit losses, a change to the allowance for credit losses is generally not recorded at the time of such modifications unless the loan is individually analyzed and the modification changes the specific reserve allocation. In the event forgiveness of principal is provided, the amount of the forgiveness is charged off against the allowance for credit losses.

The following table presents the amortized cost basis at the end of the reporting period of loans that were experiencing financial difficulty and received a modification of terms during the three and nine months ended September 30, 2025, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivables at the end of the reporting period is also presented below:

(dollars in thousands)	Combination Principal Forgiveness and Interest Rate Reduction		Total Modifications		Total Class of Financing Receivable
Three and Nine Months Ended September 30, 2025
Consumer 1-4 family mortgage loans:
Open end and junior lien loans	$	1,994	$	1,994	0.82	%
Total consumer 1-4 family mortgage loans	1,994		1,994		0.37
Total consumer loans	1,994		1,994		0.31
Total loan modifications made to borrowers experiencing financial difficulty	$	1,994	$	1,994	0.04	%

The Company has no material commitments to lend additional funds to borrowers included in the previous table.

During the three and nine months ended September 30, 2024, no modifications were made to loans for borrowers experiencing financial difficulty.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty:

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction
Three and Nine Months Ended September 30, 2025
Commercial and industrial loans:
Working capital lines of credit loans (1)	$	28,607	7.00	%
Total commercial and industrial loans	28,607		7.00	%
Total commercial loans	28,607		7.00	%
Total financial effect of loan modifications made to borrowers experiencing financial difficulty	$	28,607	7.00	%

(1) Principal forgiveness of $28.6 million represents one $30.6 million working capital line of credit loan, of which $28.6 million was charged off. The remaining $2.0 million was financed into an open end and junior lien loan with a personal guarantor of the forgiven loan. The modified note is collateralized by several of the guarantor's commercial and residential real estate properties.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty by reviewing the delinquency and payment default status of such loans to understand the effectiveness of its relief efforts.

At September 30, 2025, no loans receiving a modification due to borrower financial difficulty within the previous twelve months were greater than 30 days or more past due.

Upon the Company's determination that a modified loan (or portion thereof) has subsequently been deemed uncollectible, the loan (or a portion thereof) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.