Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Sep. 30, 2024

Loans and Allowance for Credit Losses

Schedule of classes of loans

(dollars in thousands)	September 30, 2024		June 30, 2024
1-4 residential real estate	$	942,916	$	925,397
Non-owner occupied commercial real estate		903,678		899,770
Owner occupied commercial real estate		438,030		427,476
Multi-family real estate		371,177		384,564
Construction and land development		351,481		290,541
Agriculture real estate		239,787		232,520
Total loans secured by real estate		3,247,069		3,160,268
Commercial and industrial		457,018		450,147
Agriculture production		200,215		175,968
Consumer		58,735		59,671
All other loans		3,699		3,981
Gross loans		3,966,736		3,850,035
Deferred loan fees, net		(218)		(232)
Allowance for credit losses		(54,437)		(52,516)
Net loans	$	3,912,081	$	3,797,287

Schedule of PCD loans

(dollars in thousands)	January 20, 2023
PCD Loans – Citizens
Purchase price of PCD loans at acquisition	$	27,481
Allowance for credit losses at acquisition		(1,121)
Fair value of PCD loans at acquisition	$	26,360

(dollars in thousands)	February 25, 2022
PCD Loans – Fortune
Purchase price of PCD loans at acquisition	$	15,055
Allowance for credit losses at acquisition		(120)
Fair value of PCD loans at acquisition	$	14,935

Schedule of balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment methods

	At period end and for the three months ended September 30, 2024
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 residential real estate	$	10,528	$	157	$	(48)	$	—	$	10,637
Non-owner occupied commercial real estate		19,055		1,673		—		—		20,728
Owner occupied commercial real estate		4,815		(1)		—		—		4,814
Multi-family real estate		5,447		(376)		—		47		5,118
Construction and land development		2,901		774		—		—		3,675
Agriculture real estate		2,107		(80)		—		—		2,027
Commercial and industrial		6,233		(85)		(39)		5		6,114
Agriculture production		835		(51)		—		—		784
Consumer		578		13		(72)		7		526
All other loans		17		(3)		—		—		14
Total	$	52,516	$	2,021	$	(159)	$	59	$	54,437

	At period end and for the three months ended September 30, 2023
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 residential real estate	$	9,474	$	(101)	$	(35)	$	33	$	9,371
Non-owner occupied commercial real estate		13,863		2,641		—		—		16,504
Owner occupied commercial real estate		5,168		(289)		—		—		4,879
Multi-family real estate		6,806		(612)		(97)		—		6,097
Construction and land development		3,414		224		(111)		18		3,545
Agriculture real estate		2,567		(141)		—		—		2,426
Commercial and industrial		5,235		(100)		(4)		3		5,134
Agriculture production		782		(85)		—		—		697
Consumer		490		38		(88)		13		453
All other loans		21		(5)		—		—		16
Total	$	47,820	$	1,570	$	(335)	$	67	$	49,122

Schedule of allowance for off-balance credit exposure

	At period end and for the three months ended September 30, 2024
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 residential real estate	$	140	$	30	$	170
Non-owner occupied commercial real estate		153		22		175
Owner occupied commercial real estate		136		(14)		122
Multi-family real estate		31		3		34
Construction and land development		1,912		88		2,000
Agriculture real estate		60		(8)		52
Commercial and industrial		782		20		802
Agriculture production		37		(3)		34
Consumer		12		—		12
All other loans		—		—		—
Total	$	3,263	$	138	$	3,401

	At period end and for the three months ended September 30, 2023
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 residential real estate	$	126	$	5	$	131
Non-owner occupied commercial real estate		154		—		154
Owner occupied commercial real estate		182		(2)		180
Multi-family real estate		16		(1)		15
Construction and land development		4,897		(612)		4,285
Agriculture real estate		50		(11)		39
Commercial and industrial		730		37		767
Agriculture production		107		(84)		23
Consumer		16		1		17
All other loans		10		(3)		7
Total	$	6,288	$	(670)	$	5,618

Schedule of Gross charge-offs by loan class and year of origination

													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
September 30, 2024
1-4 residential real estate	$	—	$	—	$	—	$	—	$	—	$	48	$	—	$	48
Commercial and industrial		—		—		28		—		—		11		—		39
Consumer		—		37		21		11		3		—		—		72
Total gross charge-offs	$	—	$	37	$	49	$	11	$	3	$	59	$	—	$	159

													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
September 30, 2023
1-4 residential real estate	$	—	$	—	$	—	$	—	$	—	$	35	$	—	$	35
Multi-family real estate		—		—		—		97		—		—		—		97
Construction and land development		—		—		—		111		—		—		—		111
Commercial and industrial		—		4		—		—		—		—		—		4
Consumer		6		41		26		10		—		5		—		88
Total gross charge-offs	$	6	$	45	$	26	$	218	$	—	$	40	$	—	$	335

Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity

													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
1-4 residential real estate
Pass	$	59,431	$	152,857	$	148,199	$	185,830	$	138,617	$	153,107	$	99,379	$	937,420
Watch		60		809		287		238		391		118		—		1,903
Special Mention		—		—		—		—		—		—		—		—
Substandard		960		758		623		326		176		750		—		3,593
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 residential real estate	$	60,451	$	154,424	$	149,109	$	186,394	$	139,184	$	153,975	$	99,379	$	942,916
Non-owner occupied commercial real estate
Pass	$	20,261	$	106,090	$	242,653	$	291,892	$	99,987	$	84,799	$	7,178	$	852,860
Watch		5,071		207		13,206		206		1,510		5,202		—		25,402
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		43		25,373		—		—		—		25,416
Doubtful		—		—		—		—		—		—		—		—
Total Non-owner occupied commercial real estate	$	25,332	$	106,297	$	255,902	$	317,471	$	101,497	$	90,001	$	7,178	$	903,678
Owner occupied commercial real estate
Pass	$	26,210	$	58,846	$	90,859	$	86,849	$	83,070	$	55,857	$	20,518	$	422,209
Watch		587		629		6,663		1,164		150		1,169		519		10,881
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		3,318		—		625		—		425		572		4,940
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	26,797	$	62,793	$	97,522	$	88,638	$	83,220	$	57,451	$	21,609	$	438,030
Multi-family real estate
Pass	$	15,824	$	24,791	$	156,181	$	81,520	$	73,648	$	18,832	$	381	$	371,177
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	15,824	$	24,791	$	156,181	$	81,520	$	73,648	$	18,832	$	381	$	371,177
Construction and land development
Pass	$	51,908	$	97,383	$	159,720	$	27,195	$	2,463	$	4,388	$	1,794	$	344,851
Watch		4,949		275		—		128		—		85		—		5,437
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		1,161		32		—		—		—		—		1,193
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	56,857	$	98,819	$	159,752	$	27,323	$	2,463	$	4,473	$	1,794	$	351,481
Agriculture real estate
Pass	$	13,804	$	37,392	$	44,730	$	55,391	$	47,698	$	18,522	$	18,484	$	236,021
Watch		—		252		121		192		—		259		—		824
Special Mention		—		—		—		—		—		—		—		—
Substandard		35		2,265		316		—		279		—		47		2,942
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	13,839	$	39,909	$	45,167	$	55,583	$	47,977	$	18,781	$	18,531	$	239,787
Commercial and industrial
Pass	$	31,499	$	100,314	$	56,216	$	40,472	$	41,221	$	9,206	$	173,034	$	451,962
Watch		1,906		201		257		43		8		209		286		2,910
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		201		259		859		—		752		75		2,146
Doubtful		—		—		—		—		—		—		—		—
Total Commercial and industrial	$	33,405	$	100,716	$	56,732	$	41,374	$	41,229	$	10,167	$	173,395	$	457,018
Agriculture production
Pass	$	13,323	$	37,828	$	10,533	$	3,926	$	5,851	$	2,114	$	126,123	$	199,698
Watch		128		68		2		3		—		—		217		418
Special Mention		—		—		—		—		—		—		—		—
Substandard		42		—		5		9		17		26		—		99
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	13,493	$	37,896	$	10,540	$	3,938	$	5,868	$	2,140	$	126,340	$	200,215

Consumer
Pass	$	12,468	$	21,875	$	14,664	$	5,448	$	1,785	$	361	$	2,032	$	58,633
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		34		52		12		4		—		—		102
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	12,468	$	21,909	$	14,716	$	5,460	$	1,789	$	361	$	2,032	$	58,735
All other loans
Pass	$	4	$	1,128	$	597	$	82	$	214	$	1,674	$	—	$	3,699
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	4	$	1,128	$	597	$	82	$	214	$	1,674	$	—	$	3,699
Total Loans
Pass	$	244,732	$	638,504	$	924,352	$	778,605	$	494,554	$	348,860	$	448,923	$	3,878,530
Watch		12,701		2,441		20,536		1,974		2,059		7,042		1,022		47,775
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,037		7,737		1,330		27,204		476		1,953		694		40,431
Doubtful		—		—		—		—		—		—		—		—
Total	$	258,470	$	648,682	$	946,218	$	807,783	$	497,089	$	357,855	$	450,639	$	3,966,736

													Revolving
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		loans		Total
1-4 residential real estate
Pass	$	167,734	$	157,530	$	195,002	$	142,721	$	66,292	$	92,728	$	99,365	$	921,372
Watch		877		289		87		396		98		23		—		1,770
Special Mention		—		—		—		—		—		—		—		—
Substandard		686		797		243		183		30		294		22		2,255
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 residential real estate	$	169,297	$	158,616	$	195,332	$	143,300	$	66,420	$	93,045	$	99,387	$	925,397
Non-owner occupied commercial real estate
Pass	$	120,914	$	232,802	$	294,138	$	102,380	$	33,691	$	55,190	$	6,470	$	845,585
Watch		4,658		16,232		209		1,513		4,443		1,404		—		28,459
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		43		25,683		—		—		—		—		25,726
Doubtful		—		—		—		—		—		—		—		—
Total Non-owner occupied commercial real estate	$	125,572	$	249,077	$	320,030	$	103,893	$	38,134	$	56,594	$	6,470	$	899,770
Owner occupied commercial real estate
Pass	$	63,251	$	98,776	$	89,361	$	86,975	$	25,664	$	26,124	$	20,147	$	410,298
Watch		1,252		6,492		1,178		154		—		1,181		520		10,777
Special Mention		—		—		—		—		—		—		—		—
Substandard		3,233		—		2,199		—		—		428		541		6,401
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	67,736	$	105,268	$	92,738	$	87,129	$	25,664	$	27,733	$	21,208	$	427,476
Multi-family real estate
Pass	$	36,518	$	157,471	$	86,171	$	77,545	$	21,438	$	5,341	$	80	$	384,564
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	36,518	$	157,471	$	86,171	$	77,545	$	21,438	$	5,341	$	80	$	384,564

Construction and land development
Pass	$	104,162	$	143,538	$	27,524	$	4,379	$	3,887	$	679	$	1,518	$	285,687
Watch		652		2,906		131		—		—		—		—		3,689
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,129		36		—		—		—		—		—		1,165
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	105,943	$	146,480	$	27,655	$	4,379	$	3,887	$	679	$	1,518	$	290,541
Agriculture real estate
Pass	$	39,491	$	46,387	$	56,407	$	49,334	$	9,947	$	9,238	$	18,003	$	228,807
Watch		281		100		197		—		259		—		—		837
Special Mention		—		—		—		—		—		—		—		—
Substandard		2,265		281		—		283		—		—		47		2,876
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	42,037	$	46,768	$	56,604	$	49,617	$	10,206	$	9,238	$	18,050	$	232,520
Commercial and industrial
Pass	$	116,173	$	60,404	$	43,205	$	43,879	$	3,145	$	4,863	$	174,181	$	445,850
Watch		1,031		250		43		—		—		228		404		1,956
Special Mention		—		—		—		—		—		—		—		—
Substandard		272		275		859		—		116		769		50		2,341
Doubtful		—		—		—		—		—		—		—		—
Total Commercial and industrial	$	117,476	$	60,929	$	44,107	$	43,879	$	3,261	$	5,860	$	174,635	$	450,147
Agriculture production
Pass	$	40,980	$	11,288	$	4,115	$	6,159	$	1,965	$	229	$	110,396	$	175,132
Watch		170		37		204		—		—		127		217		755
Special Mention		—		—		—		—		—		—		—		—
Substandard		5		23		9		17		—		27		—		81
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	41,155	$	11,348	$	4,328	$	6,176	$	1,965	$	383	$	110,613	$	175,968
Consumer
Pass	$	30,317	$	17,318	$	6,547	$	2,268	$	467	$	54	$	2,683	$	59,654
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		3		11		3		—		—		—		17
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	30,317	$	17,321	$	6,558	$	2,271	$	467	$	54	$	2,683	$	59,671
All other loans
Pass	$	1,139	$	644	$	122	$	217	$	43	$	1,816	$	—	$	3,981
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	1,139	$	644	$	122	$	217	$	43	$	1,816	$	—	$	3,981
Total Loans
Pass	$	720,679	$	926,158	$	802,592	$	515,857	$	166,539	$	196,262	$	432,843	$	3,760,930
Watch		8,921		26,306		2,049		2,063		4,800		2,963		1,141		48,243
Special Mention		—		—		—		—		—		—		—		—
Substandard		7,590		1,458		29,004		486		146		1,518		660		40,862
Doubtful		—		—		—		—		—		—		—		—
Total	$	737,190	$	953,922	$	833,645	$	518,406	$	171,485	$	200,743	$	434,644	$	3,850,035

Schedule of company's loan portfolio aging analysis

	September 30, 2024
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
1-4 residential real estate	$	1,688	$	3,196	$	1,713	$	6,597	$	936,319	$	942,916	$	—
Non-owner occupied commercial real estate		106		—		—		106		903,572		903,678		—
Owner occupied commercial real estate		135		—		1,173		1,308		436,722		438,030		—
Multi-family real estate		—		—		—		—		371,177		371,177		—
Construction and land development		176		—		187		363		351,118		351,481		—
Agriculture real estate		27		—		1,859		1,886		237,901		239,787		—
Commercial and industrial		1,042		210		1,257		2,509		454,509		457,018		—
Agriculture production		—		66		26		92		200,123		200,215		—
Consumer		251		139		99		489		58,246		58,735		—
All other loans		—		—		—		—		3,699		3,699		—
Total loans	$	3,425	$	3,611	$	6,314	$	13,350	$	3,953,386	$	3,966,736	$	—

	June 30, 2024
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
1-4 residential real estate	$	890	$	2,087	$	664	$	3,641	$	921,756	$	925,397	$	—
Non-owner occupied commercial real estate		107		—		—		107		899,663		899,770		—
Owner occupied commercial real estate		305		—		1,060		1,365		426,111		427,476		—
Multi-family real estate		—		—		—		—		384,564		384,564		—
Construction and land development		251		377		—		628		289,913		290,541		—
Agriculture real estate		573		—		35		608		231,912		232,520		—
Commercial and industrial		641		83		1,335		2,059		448,088		450,147		—
Agriculture production		50		—		344		394		175,574		175,968		—
Consumer		311		74		14		399		59,272		59,671		—
All other loans		—		—		—		—		3,981		3,981		—
Total loans	$	3,128	$	2,621	$	3,452	$	9,201	$	3,840,834	$	3,850,035	$	—

Schedule of company's collateral dependent loans and related ACL

											Allowance on
(dollars in thousands)	Commercial		Residential		Construction and						Collateral
September 30, 2024	Real Estate		Real Estate		Land Development		Other		Total		Dependent Loans
1-4 residential real estate	$	—	$	790	$	—	$	—	$	790	$	108
Non-owner occupied commercial real estate		23,204		—		—		—		23,204		12,079
Owner occupied commercial real estate		500		—		—		—		500		164
Construction and land development		—		—		1,161		—		1,161		161
Commercial and industrial		—		—		—		1,671		1,671		614
Total loans	$	23,704	$	790	$	1,161	$	1,671	$	27,326	$	13,126

											Allowance on
(dollars in thousands)	Commercial		Residential		Construction and						Collateral
June 30, 2024	Real Estate		Real Estate		Land Development		Other		Total		Dependent Loans
1-4 residential real estate	$	—	$	797	$	—	$	—	$	797	$	116
Non-owner occupied commercial real estate		23,457		—		—		—		23,457		10,175
Commercial and industrial		—		—		—		2,705		2,705		635
Total loans	$	23,457	$	797	$	—	$	2,705	$	26,959	$	10,926

Schedule of company's nonaccrual loans

(dollars in thousands)	September 30, 2024		June 30, 2024
1-4 residential real estate	$	2,502	$	1,391
Owner occupied commercial real estate		1,326		1,102
Construction and land development		250		108
Agriculture real estate		1,940		1,896
Commercial and industrial		1,673		1,703
Agriculture production		412		461
Consumer		103		19
Total loans	$	8,206	$	6,680