Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Text Block [Abstract]

Changes in the Allowance for Loan Losses

The following table presents, by portfolio segment, the changes in the ACL for the three months ended March 31, 2024.

Allowance for credit losses:

For the three months ended March 31, 2024	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	7,587	$	(212	)	$	152	$	210		$	7,737
Commercial Real Estate:
Owner Occupied		4,723		—			3		(74	)		4,652
Non-Owner Occupied		12,056		(174	)		5		1,081			12,968
Residential Real Estate		8,489		(13	)		120		478			9,074
Real Estate Construction		3,388		—			4		41			3,433
Farm Real Estate		260		—			—		60			320
Lease Financing Receivables		297		(226	)		—		288			359
Consumer and Other		341		(26	)		14		(23	)		306
Unallocated		19		—			—		(19	)		0
Total	$	37,160	$	(651	)	$	298	$	2,042		$	38,849

For the three months ended March 31, 2023	Beginning balance		CECL Adoption Day 1 Impact			Impact of Adopting ASC 326 - PCD Loans 1		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	3,011	$	429		$	—	$	(140	)	$	6	$	10		$	3,316
Commercial Real Estate:
Owner Occupied		4,565		1,075			19		—			—		74			5,733
Non-Owner Occupied		14,138		(2,847	)		—		—			7		462			11,760
Residential Real Estate		3,145		2,762			166		(10	)		22		(151	)		5,934
Real Estate Construction		2,293		1,502			—		—			4		121			3,920
Farm Real Estate		291		(28	)		—		—			—		6			269
Lease Financing Receivables		429		1,743			635		—			—		100			2,907
Consumer and Other		98		201			77		(25	)		8		(5	)		354
Unallocated		541		(541	)		—		—			—		3			3
Total	$	28,511	$	4,296		$	897	$	(175	)	$	47	$	620		$	34,196
1 Day 1 impact of $1,668, of adopting ASC 326-PCD loans was netted by changes in estimates of $771.

Credit Exposures by Internally Assigned Grades

Based on the most recent analysis performed, the risk category of loans, by type and year of originations, at March 31, 2024, is as follows:

	Term Loans Amortized Cost Basis by Origination Year
															Revolving
															Loans
													Revolving		Converted
March 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		to Term		Total
Commercial & Agriculture
Pass	$	12,961	$	57,193	$	59,599	$	49,031	$	15,668	$	21,053	$	80,266	$	—	$	295,771
Special Mention		—		949		162		267		1,581		106		383		—		3,448
Substandard		—		307		192		57		128		396		2,345		—		3,425
Doubtful		—		—		—		11		8		—		—		—		19
Total Commercial & Agriculture	$	12,961	$	58,449	$	59,953	$	49,366	$	17,385	$	21,555	$	82,994	$	—	$	302,663
Commercial & Agriculture:
Current-period gross charge-offs	$	—	$	139	$	—	$	40	$	—	$	33	$	—	$	—	$	212
Commercial Real Estate - Owner Occupied
Pass	$	8,466	$	37,270	$	81,350	$	66,298	$	53,393	$	108,338	$	6,251	$	—	$	361,366
Special Mention		—		523		215		733		512		456		—		—		2,439
Substandard		—		—		227		—		—		3,387		—		—		3,614
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial Real Estate - Owner Occupied	$	8,466	$	37,793	$	81,792	$	67,031	$	53,905	$	112,181	$	6,251	$	—	$	367,419
Commercial Real Estate - Owner Occupied:
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate - Non-Owner Occupied
Pass	$	3,399	$	189,130	$	285,936	$	195,569	$	135,004	$	325,610	$	25,275	$	—	$	1,159,923
Special Mention		—		584		5,731		6,114		-		8,636		277		—		21,342
Substandard		—		—		—		—		-		4,423		—		—		4,423
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial Real Estate - Non-Owner Occupied	$	3,399	$	189,714	$	291,667	$	201,683	$	135,004	$	338,669	$	25,552	$	—	$	1,185,688
Commercial Real Estate - Non-Owner Occupied:
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	174	$	—	$	—	$	174
Residential Real Estate
Pass	$	16,859	$	99,311	$	124,004	$	94,750	$	69,778	$	107,071	$	157,772	$	—	$	669,545
Special Mention		—		286		—		218		95		213		—		—		812
Substandard		1,200		180		579		768		80		2,484		1,154		—		6,445
Doubtful		—		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	18,059	$	99,777	$	124,583	$	95,736	$	69,953	$	109,768	$	158,926	$	—	$	676,802
Residential Real Estate:
Current-period gross charge-offs	$	—	$	—	$	—	$	3	$	—	$	10	$	—	$	—	$	13

Real Estate Construction
Pass	$	8,265	$	127,222	$	88,148	$	21,687	$	8,488	$	4,760	$	7,140	$	—	$	265,710
Special Mention		—		385		1,487		155		—		—		—		—		2,027
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Real Estate Construction	$	8,265	$	127,607	$	89,635	$	21,842	$	8,488	$	4,760	$	7,140	$	—	$	267,737
Real Estate Construction:

Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Farm Real Estate
Pass	$	627	$	2,329	$	947	$	2,237	$	4,392	$	12,875	$	1,501	$	—	$	24,908
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Farm Real Estate	$	627	$	2,329	$	947	$	2,237	$	4,392	$	12,875	$	1,501	$	—	$	24,908
Farm Real Estate:
Current-period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Lease Financing Receivables
Pass	$	3,087	$	10,764	$	12,248	$	11,891	$	5,068	$	11,976	$	—	$	—		55,034
Special Mention		—		254		—		—		—		—		—		—		254
Substandard		—		444		114		30		44		108		—		—		740
Doubtful		—		193		351		24		15		69		—		—		652
Total Lease Financing Receivables	$	3,087	$	11,655	$	12,713	$	11,945	$	5,127	$	12,153	$	—	$	—	$	56,680
Lease Financing Receivables:
Current-period charge-offs	$	—	$	—	$	151	$	12	$	63	$	—	$	—	$	—	$	226
Consumer and Other
Pass	$	1,117	$	4,994	$	3,629	$	3,155	$	1,293	$	530	$	1,484	$	—	$	16,202
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		4		17		13		6		—		—		40
Doubtful		—		—		—		—		—		—		—		—		—
Total Consumer and Other	$	1,117	$	4,994	$	3,633	$	3,172	$	1,306	$	536	$	1,484	$	—	$	16,242
Consumer and Other:
Current-period charge-offs	$	—	$	2	$	2	$	5	$	4	$	13	$	—	$	—	$	26
Total Loans	$	55,981	$	532,318	$	664,923	$	453,012	$	295,560	$	612,497	$	283,848	$	—	$	2,898,139
Total Loans:
Current-period charge-offs	$	—	$	141	$	153	$	60	$	67	$	230	$	—	$	—	$	651

Risk category of loans, by type and year of originations, at December 31, 2023 is as follows:

	Term Loans Amortized Cost Basis by Origination Year
															Revolving
															Loans
													Revolving		Converted
December 31, 2023	2023		2022		2021		2020		2019		Prior		Loans		to Term		Total
Commercial & Agriculture
Pass	$	56,359	$	64,250	$	52,258	$	17,622	$	9,516	$	14,088	$	82,982	$	—	$	297,075
Special Mention		774		—		287		1,690		—		106		169		—		3,026
Substandard		396		86		67		131		271		73		3,668		—		4,692
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial & Agriculture	$	57,529	$	64,336	$	52,612	$	19,443	$	9,787	$	14,267	$	86,819	$	—	$	304,793
Commercial & Agriculture:
Current-period gross charge-offs	$	—	$	673	$	532	$	—	$	—	$	95	$	—	$	—	$	1,300
Commercial Real Estate - Owner Occupied
Pass	$	36,030	$	82,502	$	67,904	$	56,069	$	29,784	$	92,750	$	5,844	$	—	$	370,883
Special Mention		526		217		739		517		-		188		—		—		2,187
Substandard		—		231		—		—		3,098		922		—		—		4,251
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial Real Estate - Owner Occupied	$	36,556	$	82,950	$	68,643	$	56,586	$	32,882	$	93,860	$	5,844	$	—	$	377,321
Commercial Real Estate - Owner Occupied:
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate - Non-Owner Occupied
Pass	$	183,439	$	269,334	$	198,832	$	136,031	$	120,659	$	206,267	$	23,016	$	—	$	1,137,578
Special Mention		—		5,774		6,171		—		-		8,688		277		—		20,910
Substandard		—		—		—		—		122		3,284		—		—		3,406
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial Real Estate - Non-Owner Occupied	$	183,439	$	275,108	$	205,003	$	136,031	$	120,781	$	218,239	$	23,293	$	—	$	1,161,894
Commercial Real Estate - Non-Owner Occupied:
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Real Estate
Pass	$	90,770	$	124,695	$	97,661	$	71,379	$	33,534	$	78,894	$	157,083	$	—	$	654,016
Special Mention		—		—		221		97		—		245		—		—		563
Substandard		186		342		684		82		582		2,063		1,323		—		5,262
Doubtful		—		—		—		—		—		—		—		—		—
Total Residential Real Estate	$	90,956	$	125,037	$	98,566	$	71,558	$	34,116	$	81,202	$	158,406	$	—	$	659,841
Residential Real Estate:
Current-period gross charge-offs	$	—	$	6	$	—	$	—	$	—	$	11	$	—	$	—	$	17

Real Estate Construction
Pass	$	108,606	$	105,222	$	20,960	$	6,739	$	2,699	$	2,635	$	9,335	$	—	$	256,196
Special Mention		—		1,226		926		2,019		—		—		—		—		4,171
Substandard		—		—		42		—		—		—		—		—		42
Doubtful		—		—		—		—		—		—		—		—		—
Total Real Estate Construction	$	108,606	$	106,448	$	21,928	$	8,758	$	2,699	$	2,635	$	9,335	$	—	$	260,409
Real Estate Construction:
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Farm Real Estate
Pass	$	2,207	$	967	$	2,256	$	4,462	$	789	$	12,528	$	1,292	$	—	$	24,501
Special Mention		—		—		—		—		—		20		—		—		20
Substandard		—		—		—		—		—		250		—		—		250
Doubtful		—		—		—		—		—		—		—		—		—
Total Farm Real Estate	$	2,207	$	967	$	2,256	$	4,462	$	789	$	12,798	$	1,292	$	—	$	24,771
Farm Real Estate:
Current-period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Lease Financing Receivables
Pass	$	28,177	$	13,924	$	6,620	$	3,678	$	1,725	$	1	$	—	$	—	$	54,125
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		8		38		61		231		17		—		—		355
Doubtful		—		139		—		15		8		—		—		—		162
Total Lease Financing Receivables	$	28,177	$	14,071	$	6,658	$	3,754	$	1,964	$	18	$	—	$	—	$	54,642
Lease Financing Receivables:
Current-period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer and Other
Pass	$	6,510	$	4,135	$	3,615	$	1,578	$	509	$	248	$	1,424	$	—	$	18,019
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		2		14		15		—		6		—		—		37
Doubtful		—		—		—		—		—		—		—		—		—
Total Consumer and Other	$	6,510	$	4,137	$	3,629	$	1,593	$	509	$	254	$	1,424	$	—	$	18,056
Consumer and Other:
Current-period charge-offs	$	6	$	40	$	40	$	7	$	13	$	3	$	5	$	—	$	114
Total Loans	$	513,980	$	673,054	$	459,295	$	302,185	$	203,527	$	423,273	$	286,413	$	—	$	2,861,727
Total Loans:
Current-period charge-offs	$	6	$	719	$	572	$	7	$	13	$	109	$	5	$	—	$	1,431

Aging Analysis of Past Due Loans

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of March 31, 2024 and December 31, 2023.

March 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	495	$	133	$	1,742	$	2,370	$	300,293	$	302,663	$	314
Commercial Real Estate:
Owner Occupied		365		—		14		379		367,040		367,419		—
Non-Owner Occupied		1,034		—		1,863		2,897		1,182,791		1,185,688		—
Residential Real Estate		4,592		116		1,209		5,917		670,885		676,802		—
Real Estate Construction		—		—		—		—		267,737		267,737		—
Farm Real Estate		—		—		—		—		24,908		24,908		—
Lease Financing Receivables		1,160		—		3,190		4,350		52,330		56,680		2,189
Consumer and Other		119		2		16		137		16,105		16,242		—
Total	$	7,765	$	251	$	8,034	$	16,050	$	2,882,089	$	2,898,139	$	2,503

December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	1,228	$	471	$	1,999	$	3,698	$	301,095	$	304,793	$	73
Commercial Real Estate:
Owner Occupied		4		—		123		127		377,194		377,321		—
Non-Owner Occupied		—		—		—		0		1,161,894		1,161,894		—
Residential Real Estate		4,581		1,180		1,642		7,403		652,438		659,841		—
Real Estate Construction		—		—		—		—		260,409		260,409		—
Farm Real Estate		—		—		—		—		24,771		24,771		—
Lease Financing Receivables		950		410		373		1,733		52,909		54,642		—
Consumer and Other		172		23		2		197		17,859		18,056		—
Total	$	6,935	$	2,084	$	4,139	$	13,158	$	2,848,569	$	2,861,727	$	73

Summary of Nonaccrual Loans Excluding PCI Loans

The following table presents loans on nonaccrual status as of March 31, 2024.

March 31, 2024	Nonaccrual loans with a related ACL		Nonaccrual loans without a related ACL		Total Nonaccrual loans		Interest Income Recognized
Commercial & Agriculture	$	982	$	2,843	$	3,825	$	6
Commercial Real Estate:
Owner Occupied		32		447		479		21
Non-Owner Occupied		1,059		1,954		3,013		—
Residential Real Estate		—		4,646		4,646		24
Real Estate Construction		—		—		—		2
Farm Real Estate		—		—		—		—
Lease Financing Receivables		585		643		1,228		—
Consumer and Other		—		44		44		1
Total	$	2,658	$	10,577	$	13,235	$	54

The following table presents loans on nonaccrual status as of December 31, 2023.

December 31, 2023	Nonaccrual loans with a related ACL		Nonaccrual loans without a related ACL		Total Nonaccrual loans		Interest Income Recognized
Commercial & Agriculture	$	914	$	4,891	$	5,805	$	9
Commercial Real Estate:
Owner Occupied		269		3		272		7
Non-Owner Occupied		—		1,167		1,167		—
Residential Real Estate		—		4,633		4,633		26
Real Estate Construction		—		41		41		—
Farm Real Estate		—		—		—		—
Lease Financing Receivables		15		492		507		—
Consumer and Other		—		42		42		4
Total	$	1,198	$	11,269	$	12,467	$	46

Schedule of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated Expected Credit Losses and Related Allowance for Credit Losses

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans as of March 31, 2024 and December 31, 2023.

March 31, 2024	Real Estate		Other		Allowance for Credit Losses
Commercial & Agriculture	$	—	$	3,899	$	982
Commercial Real Estate:
Owner Occupied		—		299		32
Non-Owner Occupied		—		3,013		1,059
Residential Real Estate		1,349		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Lease Financing Receivables		—		2,142		585
Consumer and Other		—		—		—
Total	$	1,349	$	9,353	$	2,658

December 31, 2023	Real Estate		Other		Allowance for Credit Losses
Commercial & Agriculture	$	—	$	4,674	$	945
Commercial Real Estate:
Owner Occupied		308		—		37
Non-Owner Occupied		1,167		—		268
Residential Real Estate		149		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Lease Financing Receivables		—		61		15
Consumer and Other		—		—		—
Total	$	1,624	$	4,735	$	1,265

Schedule Of Allowance For Credit Losses On Off-balance Sheet Credit Exposures

The following table lists the allowance for credit losses on off-balance sheet credit exposures as of March 31, 2024:

	Three Months Ended
	March 31,
	2024			2023
Beginning of Period	$	3,901			—
CECL adoption adjustments		—			3,386
Charge-offs		—			—
Recoveries		—			—
Provision		(50	)		201
End of Period	$	3,851		$	3,587