XML 27 R11.htm IDEA: XBRL DOCUMENT v3.25.2
Loans and Allowance for Credit Losses
12 Months Ended
Jun. 30, 2025
Loans and Allowance for Credit Losses  
Loans and Allowance for Credit Losses

NOTE 3: Loans and Allowance for Credit Losses

Classes of loans are summarized as follows:

​

​

​

​

​

​

​

​

(dollars in thousands)

    

June 30, 2025

    

June 30, 2024

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

992,445

​

$

925,397

Non-owner occupied commercial real estate

​

 

888,317

​

 

899,770

Owner occupied commercial real estate

​

 

442,984

​

 

427,476

Multi-family real estate

​

 

422,758

​

 

384,564

Construction and land development

​

​

332,405

​

​

290,541

Agriculture real estate

​

 

244,983

​

 

232,520

Total loans secured by real estate

​

 

3,323,892

​

 

3,160,268

​

​

​

​

​

​

​

Commercial and industrial

​

​

510,259

​

​

450,147

Agriculture production

​

​

206,128

​

​

175,968

Consumer

​

​

55,387

​

​

59,671

All other loans

​

​

5,102

​

​

3,981

Gross loans

​

 

4,100,768

​

 

3,850,035

​

​

​

​

​

​

​

Deferred loan fees, net

​

 

(178)

​

 

(232)

Allowance for credit losses

​

 

(51,629)

​

 

(52,516)

Net loans

​

$

4,048,961

​

$

3,797,287

​

The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At June 30, 2025, the Bank had purchased participation interests in 71 loans totaling $188.0 million, as compared to 71 loans totaling $178.5 million at June 30, 2024.

Risk characteristics applicable to each class of the loan portfolio are described as follows:

1-4 Family Residential Real Estate Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (ARM) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are generally issued up to 90% of the appraised or estimated value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on HELOCs are generally adjustable. Interest

rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

Non-Owner Occupied and Owner Occupied Commercial Real Estate Lending. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area; however, the property may be located outside the Company’s primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally.

Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property.

Multi-Family Real Estate Lending. The Company originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the Company’s primary market area. The majority of the multi-family residential loans that are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand and supply, rental rates, and vacancies, as well as collateral values and borrower leverage.

Construction and Land Development Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction and land development loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multi-family or commercial construction loans typically mature in 12 to 36 months. Once construction is completed, construction loans may be converted to permanent financing with monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and land development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further provide the Company an opportunity to assess risk.

Agriculture Production and Agriculture Real Estate Lending. Agriculture production and agriculture real estate loans are generally comprised on seasonal operating lines to farmers to plant crops and term loans to fund the purchase of equipment, farmland, or livestock. Agricultural real estate loans generally include row crop ground, pasture, and forestry. The Company originates substantially all agriculture production and agriculture real estate lending to borrowers headquartered in the Company’s primary lending area. 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. Agriculture production operating lines are typically written for one year and secured by the crop. Agricultural real estate terms offered usually have amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Risks to agricultural lending include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland and farm equipment values.

​

Commercial and Industrial Lending. The Company’s commercial and industrial lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit. The Company offers both fixed and adjustable rate commercial and industrial loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years. Commercial and industrial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally.

Consumer Lending. The Company offers a variety of secured consumer loans, direct and indirect automobile loans, recreational vehicle loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to 66 months.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. Typically, automobile loans are made for terms of up to 66 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

Allowance for Credit Losses. The ACL 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 PCL is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate ACL. In determining the adequacy of the ACL, and therefore the provision to be charged to current earnings, the Company relies primarily 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 developing assumptions for the allowance include historical net credit 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.

Individually Evaluated Loans. The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified through 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. The reviews use one of the three following 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 values are less than the

carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs. The ACL for individually evaluated loans totaled $8.2 million and $10.9 million at June 30, 2025 and June 30, 2024, respectively.

Non-Individually Evaluated (Pooled) Loans. Non-individually evaluated (pooled) loans comprise the majority of the Company’s total loan portfolio and include loans that were not individually evaluated. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal, the Company utilizes the remaining life method. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating, becoming delinquent 90 days or more, being modified for experiencing financial difficulty, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. The ACL for non-individually evaluated (pooled) loans totaled $43.4 million and $41.6 million at June 30, 2025 and June 30, 2024, respectively.

Qualitative factors. In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model.

PCD Loans. In connection with the Citizens Bancshares, Co. (“Citizens”) merger on January 20, 2023, the Company acquired loans both with and without evidence of credit quality deterioration since origination. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution’s previously recorded allowance for loan and lease losses. Acquired loans are accounted for under ASC 326, Financial Instruments – Credit Losses.

The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination (“PCD”), the net premium or net discount is adjusted to reflect the Company’s ACL recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (“non-PCD”) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company records an ACL for non-PCD loans at the time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans.

Loans that the Company acquired from Citizens that, at the time of acquisition, had more-than-insignificant deterioration of credit quality since origination are classified as PCD loans and presented in the table below at acquisition carrying value:

​

​

​

​

​

(dollars in thousands)

    

January 20, 2023

PCD Loans – Citizens

​

​

​

Purchase price of PCD loans at acquisition

​

$

27,481

ACL at acquisition

​

 

(1,121)

Fair value of PCD loans at acquisition

​

$

26,360

​

​

The following tables present the activity in the ACL based on portfolio segment for the fiscal years ended June 30, 2025, 2024, and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

Balance

​

​

 

Provision

​

​

 

​

​

​

Balance

(dollars in thousands)

​

beginning

​

Initial ACL

​

(benefit) charged

​

Losses

​

​

​

​

end

June 30, 2025

    

of period

    

on PCD loans

    

to expense

    

charged off

    

Recoveries

    

of period

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

10,528

​

$

—

​

$

(211)

​

$

(89)

​

$

46

​

$

10,274

Non-owner occupied commercial real estate

​

​

19,055

​

​

—

​

​

(3,014)

​

​

(3,800)

​

​

—

​

​

12,241

Owner occupied commercial real estate

​

​

4,815

​

​

—

​

​

(172)

​

​

(122)

​

​

—

​

​

4,521

Multi-family real estate

​

​

5,447

​

​

—

​

​

(1,165)

​

​

—

​

​

47

​

​

4,329

Construction and land development

​

​

2,901

​

​

—

​

​

1,888

​

​

(1)

​

​

—

​

​

4,788

Agriculture real estate

​

​

2,107

​

​

—

​

​

2,087

​

​

—

​

​

—

​

​

4,194

Commercial and industrial

​

​

6,233

​

​

—

​

​

2,160

​

​

(1,508)

​

​

67

​

​

6,952

Agriculture production

​

​

835

​

​

—

​

​

3,589

​

​

(1,052)

​

​

2

​

​

3,374

Consumer

​

​

578

​

​

—

​

​

698

​

​

(411)

​

​

87

​

​

952

All other loans

​

​

17

​

​

—

​

​

(13)

​

​

—

​

​

—

​

​

4

Total

​

$

52,516

​

$

—

​

$

5,847

​

$

(6,983)

​

$

249

​

$

51,629

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance

​

​

 

Provision

​

​

 

​

​

​

Balance

(dollars in thousands)

​

beginning

​

Initial ACL

​

(benefit) charged

​

Losses

​

​

​

​

end

June 30, 2024

    

of period

    

on PCD loans

    

to expense

    

charged off

    

Recoveries

    

of period

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

9,474

​

$

—

​

$

1,067

​

$

(46)

​

$

33

​

$

10,528

Non-owner occupied commercial real estate

​

​

13,863

​

​

—

​

​

5,688

​

​

(496)

​

​

—

​

​

19,055

Owner occupied commercial real estate

​

​

5,168

​

​

—

​

​

(353)

​

​

—

​

​

—

​

​

4,815

Multi-family real estate

​

​

6,806

​

​

—

​

​

(880)

​

​

(479)

​

​

—

​

​

5,447

Construction and land development

​

​

3,414

​

​

—

​

​

(242)

​

​

(289)

​

​

18

​

​

2,901

Agriculture real estate

​

​

2,567

​

​

—

​

​

(460)

​

​

—

​

​

—

​

​

2,107

Commercial and industrial

​

​

5,235

​

​

—

​

​

1,356

​

​

(395)

​

​

37

​

​

6,233

Agriculture production

​

​

782

​

​

—

​

​

53

​

​

—

​

​

—

​

​

835

Consumer

​

​

490

​

​

—

​

​

400

​

​

(350)

​

​

38

​

​

578

All other loans

​

​

21

​

​

—

​

​

(4)

​

​

—

​

​

—

​

​

17

Total

​

$

47,820

​

$

—

​

$

6,625

​

$

(2,055)

​

$

126

​

$

52,516

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

Balance

​

​

 

Provision

​

​

 

​

​

​

Balance

(dollars in thousands)

​

beginning

​

Initial ACL

​

(benefit) charged

​

Losses

​

​

​

​

end

June 30, 2023

    

of period

    

on PCD loans

    

to expense

    

charged off

    

Recoveries

    

of period

Allowance for credit losses on loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

7,266

​

$

261

​

$

2,044

​

$

(98)

​

$

1

​

$

9,474

Non-owner occupied commercial real estate

​

​

11,101

​

​

44

​

​

2,718

​

​

—

​

​

—

​

​

13,863

Owner occupied commercial real estate

​

​

2,555

​

​

584

​

​

2,274

​

​

(245)

​

​

—

​

​

5,168

Multi-family real estate

​

​

2,057

​

​

—

​

​

4,749

​

​

—

​

​

—

​

​

6,806

Construction and land development

​

​

3,256

​

​

12

​

​

134

​

​

—

​

​

12

​

​

3,414

Agriculture real estate

​

​

2,145

​

​

—

​

​

422

​

​

—

​

​

—

​

​

2,567

Commercial and industrial

​

​

3,597

​

​

214

​

​

1,492

​

​

(76)

​

​

8

​

​

5,235

Agriculture production

​

​

799

​

​

—

​

​

(11)

​

​

(6)

​

​

—

​

​

782

Consumer

​

​

402

​

​

6

​

​

302

​

​

(248)

​

​

28

​

​

490

All other loans

​

​

14

​

​

—

​

​

7

​

​

—

​

​

—

​

​

21

Total

​

$

33,192

​

$

1,121

​

$

14,131

​

$

(673)

​

$

49

​

$

47,820

​

​

The following tables present the activity in the allowance for off-balance credit exposure based on portfolio segment for the fiscal years ended June 30, 2025, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

 

Balance

​

Provision

 

Balance

(dollars in thousands)

​

beginning

​

(benefit) charged

​

end

June 30, 2025

    

of period

    

to expense

    

of period

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

140

​

$

62

​

$

202

Non-owner occupied commercial real estate

​

​

153

​

​

(19)

​

​

134

Owner occupied commercial real estate

​

​

136

​

​

25

​

​

161

Multi-family real estate

​

​

31

​

​

(31)

​

​

—

Construction and land development

​

​

1,912

​

​

367

​

​

2,279

Agriculture real estate

​

​

60

​

​

21

​

​

81

Commercial and industrial

​

​

782

​

​

292

​

​

1,074

Agriculture production

​

​

37

​

​

(37)

​

​

—

Consumer

​

​

12

​

​

(12)

​

​

—

All other loans

​

​

—

​

​

8

​

​

8

Total

​

$

3,263

​

$

676

​

$

3,939

​

​

​

​

​

​

​

​

​

​

​

​

 

Balance

​

Provision

 

Balance

(dollars in thousands)

​

beginning

​

(benefit) charged

​

end

June 30, 2024

    

of period

    

to expense

    

of period

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

126

​

$

14

​

$

140

Non-owner occupied commercial real estate

​

​

154

​

​

(1)

​

​

153

Owner occupied commercial real estate

​

​

182

​

​

(46)

​

​

136

Multi-family real estate

​

​

16

​

​

15

​

​

31

Construction and land development

​

​

4,897

​

​

(2,985)

​

​

1,912

Agriculture real estate

​

​

50

​

​

10

​

​

60

Commercial and industrial

​

​

730

​

​

52

​

​

782

Agriculture production

​

​

107

​

​

(70)

​

​

37

Consumer

​

​

16

​

​

(4)

​

​

12

All other loans

​

​

10

​

​

(10)

​

​

—

Total

​

$

6,288

​

$

(3,025)

​

$

3,263

​

​

​

​

​

​

​

​

​

​

​

​

 

Balance

​

Provision

 

Balance

(dollars in thousands)

​

beginning

​

(benefit) charged

​

end

June 30, 2023

    

of period

    

to expense

    

of period

Allowance for off-balance sheet credit exposure:

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

107

​

$

19

​

$

126

Non-owner occupied commercial real estate

​

​

202

​

​

(48)

​

​

154

Owner occupied commercial real estate

​

​

78

​

​

104

​

​

182

Multi-family real estate

​

​

15

​

​

1

​

​

16

Construction and land development

​

​

2,243

​

​

2,654

​

​

4,897

Agriculture real estate

​

​

73

​

​

(23)

​

​

50

Commercial and industrial

​

​

420

​

​

310

​

​

730

Agriculture production

​

​

218

​

​

(111)

​

​

107

Consumer

​

​

2

​

​

14

​

​

16

All other loans

​

​

—

​

​

10

​

​

10

Total

​

$

3,358

​

$

2,930

​

$

6,288

​

​

The following tables present gross charge-offs by loan class and year of origination for the years ended June 30, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

(dollars in thousands)

    

2025

    

2024

    

2023

    

2022

    

2021

    

Prior

    

loans

    

Total

June 30, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

89

​

$

—

​

$

89

Non-owner occupied commercial real estate

​

 

—

​

 

—

​

 

—

​

 

3,800

​

 

—

​

 

—

​

 

—

​

 

3,800

Owner occupied commercial real estate

​

 

—

​

 

—

​

 

122

​

 

—

​

 

—

​

 

—

​

 

—

​

 

122

Construction and land development

​

 

—

​

 

—

​

 

—

​

 

—

​

 

1

​

 

—

​

 

—

​

 

1

Commercial and industrial

​

 

25

​

 

505

​

 

212

​

 

507

​

 

217

​

 

42

​

 

—

​

 

1,508

Agriculture production

​

 

—

​

 

1,052

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

1,052

Consumer

​

 

131

​

 

131

​

 

84

​

 

41

​

 

7

​

 

17

​

 

—

​

 

411

Total gross charge-offs

​

$

156

​

$

1,688

​

$

418

​

$

4,348

​

$

225

​

$

148

​

$

—

​

$

6,983

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

(dollars in thousands)

    

2024

    

2023

    

2022

    

2021

    

2020

    

Prior

    

loans

    

Total

June 30, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

—

​

$

—

​

$

6

​

$

—

​

$

—

​

$

40

​

$

—

​

$

46

Non-owner occupied commercial real estate

​

 

—

​

 

496

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

496

Multi-family real estate

​

 

—

​

 

—

​

 

382

​

 

97

​

 

—

​

 

—

​

 

—

​

 

479

Construction and land development

​

 

—

​

 

100

​

 

78

​

 

111

​

 

—

​

 

—

​

 

—

​

 

289

Commercial and industrial

​

 

—

​

 

190

​

 

195

​

 

10

​

 

—

​

 

—

​

 

—

​

 

395

Consumer

​

 

38

​

 

162

​

 

100

​

 

41

​

 

—

​

 

9

​

 

—

​

 

350

Total gross charge-offs

​

$

38

​

$

948

​

$

761

​

$

259

​

$

—

​

$

49

​

$

—

​

$

2,055

​

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 loans individually by classifying the loans as to credit risk. This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. A sample of lending relationships are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:

Watch – Loans classified as watch exhibit weaknesses that require more than usual monitoring. Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days. This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding. These loans may exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.

Doubtful – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.

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

A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades. The primary responsibility for this review rests with loan administration personnel. This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies. The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.

The following table presents the credit risk profile of the Company’s loan portfolio based on rating category and year of origination as of June 30, 2025. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

(dollars in thousands)

    

2025

    

2024

    

2023

    

2022

    

2021

    

Prior

    

loans

    

Total

1-4 Family residential real estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

204,048

​

$

110,823

​

$

133,616

​

$

167,711

​

$

126,851

​

$

132,126

​

$

112,346

​

$

987,521

Watch

​

 

620

​

 

261

​

 

376

​

 

360

​

 

277

​

 

250

​

 

—

​

 

2,144

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

734

​

 

190

​

 

346

​

 

33

​

 

1,359

​

 

118

​

 

2,780

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total 1-4 Family residential real estate

​

$

204,668

​

$

111,818

​

$

134,182

​

$

168,417

​

$

127,161

​

$

133,735

​

$

112,464

​

$

992,445

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Non-owner occupied commercial real estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

115,266

​

$

82,983

​

$

213,647

​

$

273,348

​

$

76,522

​

$

70,869

​

$

7,570

​

$

840,205

Watch

​

 

—

​

 

1,770

​

 

15,146

​

 

213

​

 

—

​

 

—

​

 

—

​

 

17,129

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

64

​

 

4,490

​

 

26,429

​

 

—

​

 

—

​

 

—

​

 

30,983

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Non-owner occupied commercial real estate

​

$

115,266

​

$

84,817

​

$

233,283

​

$

299,990

​

$

76,522

​

$

70,869

​

$

7,570

​

$

888,317

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Owner occupied commercial real estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

72,469

​

$

57,047

​

$

87,899

​

$

79,946

​

$

73,291

​

$

43,764

​

$

21,206

​

$

435,622

Watch

​

 

1,440

​

 

2,234

​

 

287

​

 

83

​

 

—

​

 

73

​

 

—

​

 

4,117

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

868

​

 

969

​

 

901

​

 

71

​

 

436

​

 

—

​

 

3,245

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Owner occupied commercial real estate

​

$

73,909

​

$

60,149

​

$

89,155

​

$

80,930

​

$

73,362

​

$

44,273

​

$

21,206

​

$

442,984

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Multi-family real estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

79,658

​

$

19,078

​

$

179,905

​

$

69,862

​

$

56,328

​

$

13,577

​

$

1,402

​

$

419,810

Watch

​

 

1,571

​

 

—

​

 

—

​

 

1,377

​

 

—

​

 

—

​

 

—

​

 

2,948

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Multi-family real estate

​

$

81,229

​

$

19,078

​

$

179,905

​

$

71,239

​

$

56,328

​

$

13,577

​

$

1,402

​

$

422,758

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction and land development

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

161,995

​

$

32,148

​

$

117,395

​

$

9,144

​

$

1,829

​

$

1,396

​

$

2,020

​

$

325,927

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

63

​

 

—

​

 

63

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

5,743

​

 

—

​

 

—

​

 

—

​

 

672

​

 

—

​

 

6,415

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Construction and land development

​

$

161,995

​

$

37,891

​

$

117,395

​

$

9,144

​

$

1,829

​

$

2,131

​

$

2,020

​

$

332,405

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture real estate

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

56,350

​

$

24,526

​

$

36,351

​

$

40,456

​

$

37,094

​

$

11,570

​

$

18,747

​

$

225,094

Watch

​

 

3,883

​

 

1,092

​

 

2,145

​

 

5,603

​

 

4,043

​

 

—

​

 

475

​

 

17,241

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

35

​

 

2,206

​

 

257

​

 

150

​

 

—

​

 

—

​

 

—

​

 

2,648

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Agriculture real estate

​

$

60,268

​

$

27,824

​

$

38,753

​

$

46,209

​

$

41,137

​

$

11,570

​

$

19,222

​

$

244,983

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and industrial

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

169,734

​

$

38,321

​

$

36,459

​

$

31,607

​

$

16,918

​

$

6,016

​

$

192,310

​

$

491,365

Watch

​

 

3,966

​

 

4,565

​

 

2,453

​

 

—

​

 

250

​

 

13

​

 

4,437

​

 

15,684

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

753

​

 

111

​

 

165

​

 

935

​

 

53

​

 

239

​

 

954

​

 

3,210

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Commercial and industrial

​

$

174,453

​

$

42,997

​

$

39,077

​

$

32,542

​

$

17,221

​

$

6,268

​

$

197,701

​

$

510,259

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture production

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

43,446

​

$

13,230

​

$

5,631

​

$

1,910

​

$

4,363

​

$

302

​

$

119,345

​

$

188,227

Watch

​

 

3,319

​

 

888

​

 

—

​

 

83

​

 

—

​

 

—

​

 

13,357

​

 

17,647

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

26

​

 

127

​

 

81

​

 

8

​

 

—

​

 

12

​

 

—

​

 

254

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Agriculture production

​

$

46,791

​

$

14,245

​

$

5,712

​

$

2,001

​

$

4,363

​

$

314

​

$

132,702

​

$

206,128

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

29,912

​

$

11,264

​

$

8,330

​

$

3,189

​

$

938

​

$

172

​

$

1,483

​

$

55,288

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

50

​

 

20

​

 

12

​

 

17

​

 

—

​

 

—

​

 

—

​

 

99

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total Consumer

​

$

29,962

​

$

11,284

​

$

8,342

​

$

3,206

​

$

938

​

$

172

​

$

1,483

​

$

55,387

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

All other loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

2,334

​

$

869

​

$

245

​

$

82

​

$

132

​

$

1,440

​

$

—

​

$

5,102

Watch

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total All other loans

​

$

2,334

​

$

869

​

$

245

​

$

82

​

$

132

​

$

1,440

​

$

—

​

$

5,102

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

Pass

​

$

935,212

​

$

390,289

​

$

819,478

​

$

677,255

​

$

394,266

​

$

281,232

​

$

476,429

​

$

3,974,161

Watch

​

 

14,799

​

 

10,810

​

 

20,407

​

 

7,719

​

 

4,570

​

 

399

​

 

18,269

​

 

76,973

Special Mention

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Substandard

​

 

864

​

 

9,873

​

 

6,164

​

 

28,786

​

 

157

​

 

2,718

​

 

1,072

​

 

49,634

Doubtful

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total

​

$

950,875

​

$

410,972

​

$

846,049

​

$

713,760

​

$

398,993

​

$

284,349

​

$

495,770

​

$

4,100,768

​

At June 30, 2025, PCD loans comprised $35.1 million of credits rated “Pass”; $2.7 million of credits rated “Watch”; none rated “Special Mention”; $8.0 million of credits rated “Substandard”; and none rated “Doubtful”.

The following table presents the credit risk profile of the Company’s loan portfolio based on rating category and year of origination as of June 30, 2024. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

(dollars in thousands)

    

2024

    

2023

    

2022

    

2021

    

2020

    

Prior

    

loans

    

Total

1-4 Family 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 Family 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

​

At June 30, 2024, PCD loans comprised $40.9 million of credits rated “Pass”; $8.4 million of credits rated “Watch”; none rated “Special Mention”; $3.1 million of credits rated “Substandard”; and none rated “Doubtful”.

Past Due Loans. The following tables present the Company’s loan portfolio aging analysis as of June 30, 2025 and 2024. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

June 30, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

​

$

1,317

​

$

1,973

​

$

2,442

​

$

5,732

​

$

986,713

​

$

992,445

​

$

—

Non-owner occupied commercial real estate

​

 

62

​

 

—

​

 

5,784

​

 

5,846

​

 

882,471

​

 

888,317

​

 

—

Owner occupied commercial real estate

​

 

—

​

 

116

​

 

989

​

 

1,105

​

 

441,879

​

 

442,984

​

 

—

Multi-family real estate

​

 

—

​

 

—

​

 

—

​

 

—

​

 

422,758

​

 

422,758

​

 

—

Construction and land development

​

 

315

​

 

12

​

 

5,743

​

 

6,070

​

 

326,335

​

 

332,405

​

 

—

Agriculture real estate

​

 

178

​

 

11

​

 

2,613

​

 

2,802

​

 

242,181

​

 

244,983

​

 

—

Commercial and industrial

​

 

1,055

​

 

219

​

 

1,837

​

 

3,111

​

 

507,148

​

 

510,259

​

 

—

Agriculture production

​

 

163

​

 

164

​

 

78

​

 

405

​

 

205,723

​

 

206,128

​

 

—

Consumer

​

 

380

​

 

98

​

 

74

​

 

552

​

 

54,835

​

 

55,387

​

 

—

All other loans

​

 

—

​

 

—

​

 

—

​

 

—

​

 

5,102

​

 

5,102

​

 

—

Total loans

​

$

3,470

​

$

2,593

​

$

19,560

​

$

25,623

​

$

4,075,145

​

$

4,100,768

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

June 30, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

1-4 Family 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

​

$

—

​

At June 30, 2025 there were three PCD loans totaling $6.2 million that were greater than 90 days past due, and there was one at June 30, 2024 totaling $560,000.

Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.

Collateral-dependent Loans. The following table presents the Company’s collateral-dependent loans and related ACL at June 30, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance on

(dollars in thousands)

​

Primary Type of Collateral

​

Collateral

June 30, 2025

​

Real Estate

​

Land

​

Other

​

Total

​

Dependent Loans

​

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

1-4 Family residential real estate

 

$

752

​

$

—

​

$

—

​

$

752

​

$

117

Non-owner occupied commercial real estate

​

​

31,764

​

​

—

​

​

—

​

​

31,764

​

​

6,456

Owner occupied commercial real estate

​

​

811

​

​

—

​

​

541

​

​

1,352

​

​

290

Construction and land development

​

​

5,743

​

​

661

​

​

—

​

​

6,404

​

​

161

Agriculture real estate

​

​

1,695

​

​

—

​

​

—

​

​

1,695

​

​

—

Commercial and industrial

​

​

494

​

​

—

​

​

3,128

​

​

3,622

​

​

1,129

Total loans

​

$

41,259

​

$

661

​

$

3,669

​

$

45,589

​

$

8,153

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance on

(dollars in thousands)

​

Primary Type of Collateral

​

Collateral

June 30, 2024

​

Real Estate

​

Land

​

Other

​

Total

​

Dependent Loans

​

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

1-4 Family 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

​

$

24,254

​

$

—

​

$

2,705

​

$

26,959

​

$

10,926

​

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at June 30, 2025 and 2024.

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

(dollars in thousands)

​

June 30, 2025

​

June 30, 2024

1-4 Family residential real estate

​

$

2,847

​

$

1,391

Non-owner occupied commercial real estate

​

 

5,784

​

 

—

Owner occupied commercial real estate

​

 

1,309

​

 

1,102

Construction and land development

​

 

5,789

​

 

108

Agriculture real estate

​

 

3,268

​

 

1,896

Commercial and industrial

​

 

3,442

​

 

1,703

Agriculture production

​

 

505

​

 

461

Consumer

​

 

96

​

 

19

Total loans

​

$

23,040

​

$

6,680

​

At June 30, 2025, there were four nonaccrual loans, totaling $7.4 million that were individually evaluated for which no ACL was recorded, and none at June 30, 2024.

Modifications to Borrowers Experiencing Financial Difficulty. During fiscal 2025, ten loans totaling $25.7 million, were modified for borrowers experiencing financial difficulty. During fiscal 2024, two loans totaling $859,000, were modified for borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding at June 30, 2025 and 2024 are shown in the following tables segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2025

​

​

​

​

​

Term

​

Interest

​

Total Class of

    

​

Principal

​

Payment

​

Extension

​

Rate

​

Financing

    

​

Forgiveness

    

Delays

    

Modifications

    

Reduction

    

Receivable

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

$

—

​

$

—

​

$

24

​

$

—

​

0.00

%  

Non-owner occupied commercial real estate

 

—

​

 

22,270

​

 

—

​

 

—

​

2.51

%  

Owner occupied commercial real estate

 

—

​

 

—

​

 

—

​

 

2,701

​

0.61

%  

Multi-family real estate

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Construction and land development

 

—

​

 

—

​

 

—

​

 

661

​

0.20

%  

Agriculture real estate

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Commercial and industrial

 

—

​

 

54

​

 

—

​

 

—

​

0.01

%  

Agriculture production

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Consumer

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

All other loans

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Total

$

—

​

$

22,324

​

$

24

​

$

3,362

​

0.63

%  

​

None of the modifications made during fiscal 2025 were more than 90 days past due, and none defaulted during fiscal 2025. For modifications to loans made to borrowers experiencing financial difficulty that are adversely classified, the Company determines the ACL on an individual basis, using the same process that it utilizes for other adversely classified loans. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL because of the measurement methodologies used to estimate the allowance. As a result, a change to the ACL is generally not recorded upon modification.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

​

​

​

​

Term

​

Interest

​

Total Class of

    

​

Principal

​

Payment

​

Extension

​

Rate

​

Financing

    

​

Forgiveness

    

Delays

    

Modifications

    

Reduction

    

Receivable

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1-4 Family residential real estate

$

—

​

$

—

​

$

—

​

$

—

​

—

%  

Non-owner occupied commercial real estate

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Owner occupied commercial real estate

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Multi-family real estate

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Construction and land development

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Agriculture real estate

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Commercial and industrial

 

—

​

 

859

​

 

—

​

 

—

​

0.19

%  

Agriculture production

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Consumer

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

All other loans

 

—

​

 

—

​

 

—

​

 

—

​

—

%  

Total

$

—

​

$

859

​

$

—

​

$

—

​

0.02

%  

​

Both loan modifications made during fiscal 2024 were more than 90 days past due, and were classified as substandard at June 30, 2024. Both of these loans defaulted in fiscal 2024.

Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure, deed in lieu, or in-substance repossession. As of June 30, 2025 and June 30, 2024, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $0 and $74,000, respectively. In addition, as of June 30, 2025 and 2024, the Company had residential mortgage loans and home equity loans with a carrying value of $769,000 and $193,000 respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2025 and 2024, respectively:

​

​

​

​

​

​

​

​

​

​

June 30, 

(dollars in thousands)

    

2025

    

2024

Beginning Balance

 

$

11,101

​

$

10,547

Additions

 

 

8,816

​

 

6,465

Repayments

 

 

(7,228)

​

 

(5,911)

Change in related party

 

 

1,688

​

 

—

Ending Balance

 

$

14,377

​

$

11,101

​