
	September 30, 2024		December 31, 2023
Commercial:
Commercial and Industrial Loans	$	591,277	$	589,541
Commercial Real Estate Loans	2,179,981		2,121,835
Agricultural Loans	417,473		423,803
Leases	78,827		71,988
Retail:
Home Equity Loans	333,829		299,685
Consumer Loans	82,882		87,853
Credit Cards	22,671		20,351
Residential Mortgage Loans	362,415		362,844

Subtotal	4,069,355		3,977,900
Less: Unearned Income	(8,206)		(6,818)
Allowance for Credit Losses	(44,124)		(43,765)
Loans, net	$	4,017,025	$	3,927,317


September 30, 2024	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
Allowance for Credit Losses:
Beginning balance	$	7,200	$	26,598	$	3,697	$	368	$	722	$	2,058	$	413	$	2,890	$	43,946
Provision (Benefit) for credit loss expense	(137)		54		211		28		224		72		202		(29)		625
Loans charged-off	(92)		—		(7)		—		(364)		—		(156)		—		(619)
Recoveries collected	3		4		—		—		158		—		7		—		172
Total ending allowance balance	$	6,974	$	26,656	$	3,901	$	396	$	740	$	2,130	$	466	$	2,861	$	44,124


September 30, 2023	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
Allowance for Credit Losses:
Beginning balance	$	13,567	$	21,834	$	3,956	$	235	$	640	$	1,436	$	288	$	2,310	$	44,266
Provision (Benefit) for credit loss expense	(436)		1,117		(168)		19		258		9		93		8		900
Loans charged-off	(175)		(56)		(2)		—		(352)		—		(64)		(1)		(650)
Recoveries collected	2		5		—		—		119		2		2		—		130
Total ending allowance balance	$	12,958	$	22,900	$	3,786	$	254	$	665	$	1,447	$	319	$	2,317	$	44,646


September 30, 2024	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
Allowance for Credit Losses:
Beginning balance	$	7,921	$	25,923	$	3,837	$	346	$	759	$	1,834	$	383	$	2,762	$	43,765
Provision (Benefit) for credit loss expense	(768)		1,028		70		50		700		421		550		99		2,150
Loans charged-off	(223)		(308)		(8)		—		(1,117)		(134)		(489)		—		(2,279)
Recoveries collected	44		13		2		—		398		9		22		—		488
Total ending allowance balance	$	6,974	$	26,656	$	3,901	$	396	$	740	$	2,130	$	466	$	2,861	$	44,124


September 30, 2023	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
Allowance for Credit Losses:
Beginning balance	$	13,749	$	21,598	$	4,188	$	209	$	595	$	1,344	$	257	$	2,228	$	44,168

Provision (Benefit) for credit loss expense	310		1,286		(375)		45		657		109		374		144		2,550
Loans charged-off	(1,252)		(56)		(27)		—		(980)		(39)		(325)		(58)		(2,737)
Recoveries collected	151		72		—		—		393		33		13		3		665
Total ending allowance balance	$	12,958	$	22,900	$	3,786	$	254	$	665	$	1,447	$	319	$	2,317	$	44,646

The Company utilizes the static pool methodology in determining expected future credit losses. Static pool analysis means segmenting and tracking loans over a period of time based on similar risk characteristics such as loan structure, collateral type, industry of borrower and concentrations, contractual terms and credit risk indicators. Static pool calculates a loss rate on a closed pool of loans that existed on a specified start date based upon the remaining life of each segment.

Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration industry and collateral concentrations, acquired loan portfolio characteristics and other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves by anchoring to specific data points when possible.

The Company estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in underwriting standards, portfolio mix, delinquency level, changes in environmental conditions, unemployment rates, risk classifications and collateral values. The allowance for credit losses is measured on a collective (pooled) basis when similar risk characteristics exist. Based on the potential increased losses related to the advancing stress on the economy as a result of inflationary pressures, rising interest rates and financial market volatility, the Company has considered this loss experience may align with loss experience from the recessionary period from 2008-2011 and qualitative adjustments have been made accordingly.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date adjusted for selling costs.

For the nine months ended September 30, 2024, the allowance for credit losses remained stable compared to December 31, 2023, with the Company adding reserve for loan portfolio growth during 2024. Key indicators utilized in forecasting for the allowance calculations include unemployment rates and gross domestic product as well as commodity prices for the agricultural segment of the portfolio. There has been some improvement in these factors over previous periods; however, rising interest rates and the expanded inflationary impact on consumer discretionary spending were considered in the qualitative factors to determine the allowance for credit losses.

All classes of loans, including loans acquired with deteriorated credit quality, are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. For purchased loans, the determination is made at the time of acquisition as well as over the life of the loan. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed uncollectible. Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection.


September 30, 2024	Non-Accrual With No Allowance for Credit Loss (1)		Total Non-Accrual		Loans Past Due Over 89 Days Still Accruing

Commercial and Industrial Loans	$	1,482	$	3,214	$	—
Commercial Real Estate Loans	1,246		2,173		—
Agricultural Loans	883		1,132		—
Leases	—		—		—
Home Equity Loans	794		794		—
Consumer Loans	328		328		—
Credit Cards	42		42		—
Residential Mortgage Loans	1,619		2,018		—
Total	$	6,394	$	9,701	$	—


December 31, 2023	Non-Accrual With No Allowance for Credit Loss (1)		Total Non-Accrual		Loans Past Due Over 89 Days Still Accruing

Commercial and Industrial Loans	$	1,864	$	3,707	$	—
Commercial Real Estate Loans	942		1,889		55
Agricultural Loans	665		879		—
Leases	—		—		—
Home Equity Loans	1,033		1,033		—
Consumer Loans	111		111		—
Credit Cards	142		142		—
Residential Mortgage Loans	1,125		1,375		—
Total	$	5,882	$	9,136	$	55


September 30, 2024	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	4,405	$	94	$	—	$	133	$	4,632
Commercial Real Estate Loans	8,349		—		—		—		8,349
Agricultural Loans	3,138		270		—		—		3,408
Leases	—		—		—		—		—
Home Equity Loans	422		—		—		—		422
Consumer Loans	10		—		—		—		10
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	709		—		—		—		709
Total	$	17,033	$	364	$	—	$	133	$	17,530


December 31, 2023	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	3,668	$	49	$	—	$	1,888	$	5,605
Commercial Real Estate Loans	8,553		—		—		—		8,553
Agricultural Loans	3,338		1,055		—		—		4,393
Leases	—		—		—		—		—
Home Equity Loans	420		—		—		—		420
Consumer Loans	9		—		—		—		9
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	753		—		—		—		753
Total	$	16,741	$	1,104	$	—	$	1,888	$	19,733


September 30, 2024	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial and Industrial Loans	$	794	$	—	$	1,987	$	2,781	$	588,496	$	591,277
Commercial Real Estate Loans	745		—		2,105		2,850		2,177,131		2,179,981
Agricultural Loans	60		—		801		861		416,612		417,473
Leases	—		—		—		—		78,827		78,827
Home Equity Loans	2,482		319		795		3,596		330,233		333,829
Consumer Loans	640		36		328		1,004		81,878		82,882
Credit Cards	111		102		42		255		22,416		22,671
Residential Mortgage Loans	4,437		2,531		1,837		8,805		353,610		362,415
Total	$	9,269	$	2,988	$	7,895	$	20,152	$	4,049,203	$	4,069,355


December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial and Industrial Loans	$	832	$	257	$	3,299	$	4,388	$	585,153	$	589,541
Commercial Real Estate Loans	1,215		484		938		2,637		2,119,198		2,121,835
Agricultural Loans	5		248		497		750		423,053		423,803
Leases	—		—		—		—		71,988		71,988
Home Equity Loans	1,016		571		1,033		2,620		297,065		299,685
Consumer Loans	658		84		110		852		87,001		87,853
Credit Cards	165		87		142		394		19,957		20,351
Residential Mortgage Loans	7,362		1,647		1,215		10,224		352,620		362,844
Total	$	11,253	$	3,378	$	7,234	$	21,865	$	3,956,035	$	3,977,900

Effective January 1, 2023, the Company prospectively adopted ASU 2022-02, which eliminated the accounting for troubled debt restructurings while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties. As such, effective with the adoption of the new standard, the Company will not include, prospectively, financial difficulty modifications in its presentation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included troubled debt restructurings, has not been adjusted.

The Company’s loan modifications for borrowers experiencing financial difficulties will typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modifications during the three and nine months ended September 30, 2024, or the year ended December 31, 2023, resulted in a permanent reduction of the recorded investment in the loan.

During the three and nine months ended September 30, 2024 and 2023, the Company had no modified loans made to borrowers experiencing financial difficulty. There were no modified loans that had a payment default during the three and nine months ended September 30, 2024 and 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. The Company considers a loan to be in payment default once it is 30 days contractually past due under the modified terms.

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 classifies loans as to credit risk by individually analyzing loans. This analysis includes commercial and industrial loans, commercial real estate loans, and agricultural loans with an outstanding balance greater than $250. This analysis is typically performed on at least an annual basis. The Company uses the following definitions for risk ratings:

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.


	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	83,323	$	95,627	$	100,299	$	70,194	$	19,325	$	53,329	$	152,318	$	574,415
Special Mention	156		1,642		379		544		909		2,343		833		6,806
Substandard	100		—		189		3,289		976		1,723		3,779		10,056
Doubtful	—		—		—		—		—		—		—		—
Total Commercial & Industrial Loans	$	83,579	$	97,269	$	100,867	$	74,027	$	21,210	$	57,395	$	156,930	$	591,277

Current Period Gross Charge-Offs	$	—	$	4	$	96	$	64	$	—	$	13	$	46	$	223

Commercial Real Estate:
Risk Rating
Pass	$	207,054	$	317,427	$	407,500	$	429,879	$	197,875	$	525,716	$	37,225	$	2,122,676
Special Mention	495		13,498		3,077		12,582		2,014		14,994		200		46,860
Substandard	—		457		1,227		5,222		62		3,477		—		10,445
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	207,549	$	331,382	$	411,804	$	447,683	$	199,951	$	544,187	$	37,425	$	2,179,981

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	308	$	—	$	308

Agricultural:
Risk Rating
Pass	$	42,832	$	37,719	$	49,689	$	34,596	$	37,571	$	107,791	$	79,919	$	390,117
Special Mention	548		1,437		146		832		5,090		11,905		2,716		22,674
Substandard	176		—		—		—		—		4,506		—		4,682
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	43,556	$	39,156	$	49,835	$	35,428	$	42,661	$	124,202	$	82,635	$	417,473

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	8

Leases:
Risk Rating
Pass	$	25,831	$	28,480	$	9,324	$	7,430	$	3,018	$	4,744	$	—	$	78,827
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	25,831	$	28,480	$	9,324	$	7,430	$	3,018	$	4,744	$	—	$	78,827

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	112,626	$	134,590	$	80,738	$	28,492	$	32,585	$	45,764	$	134,936	$	569,731
Special Mention	47		453		128		829		—		1,948		3,048		6,453
Substandard	—		294		5,689		780		1,696		1,471		3,427		13,357
Doubtful	—		—		—		—		—		—		—		—
Total Commercial & Industrial Loans	$	112,673	$	135,337	$	86,555	$	30,101	$	34,281	$	49,183	$	141,411	$	589,541

Current Period Gross Charge-Offs	$	—	$	911	$	32	$	493	$	7	$	88	$	261	$	1,792

Commercial Real Estate:
Risk Rating
Pass	$	300,569	$	416,874	$	470,917	$	225,668	$	147,431	$	458,821	$	41,102	$	2,061,382
Special Mention	13,906		2,401		11,155		1,651		259		19,532		638		49,542
Substandard	—		617		5,510		1,142		729		2,737		176		10,911
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	314,475	$	419,892	$	487,582	$	228,461	$	148,419	$	481,090	$	41,916	$	2,121,835

Current Period Gross Charge-Offs	$	—	$	—	$	56	$	—	$	—	$	—	$	—	$	56

Agricultural:
Risk Rating
Pass	$	44,948	$	56,291	$	39,852	$	42,279	$	23,217	$	100,391	$	89,455	$	396,433
Special Mention	1,495		164		903		5,047		2,338		9,894		2,259		22,100
Substandard	—		—		199		188		200		4,683		—		5,270
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	46,443	$	56,455	$	40,954	$	47,514	$	25,755	$	114,968	$	91,714	$	423,803

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	2	$	—	$	—	$	25	$	27

Leases:
Risk Rating
Pass	$	36,848	$	12,281	$	10,634	$	6,086	$	4,788	$	1,351	$	—	$	71,988
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	36,848	$	12,281	$	10,634	$	6,086	$	4,788	$	1,351	$	—	$	71,988

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the amortized cost in residential, home equity and consumer loans based on payment activity.


	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	33,504	$	26,797	$	10,794	$	6,217	$	1,417	$	1,779	$	2,046	$	82,554
Nonperforming	1		43		277		6		—		1		—		328
Total Consumer Loans	$	33,505	$	26,840	$	11,071	$	6,223	$	1,417	$	1,780	$	2,046	$	82,882

Current Period Gross Charge-Offs	$	902	$	125	$	48	$	37	$	—	$	2	$	3	$	1,117

Home Equity:
Payment performance
Performing	$	55	$	264	$	3,595	$	639	$	424	$	3,623	$	324,435	$	333,035
Nonperforming	—		—		450		24		—		282		38		794
Total Home Equity Loans	$	55	$	264	$	4,045	$	663	$	424	$	3,905	$	324,473	$	333,829

Current Period Gross Charge-Offs	$	—	$	—	$	35	$	99	$	—	$	—	$	—	$	134

Residential Mortgage:
Payment performance
Performing	$	40,889	$	52,945	$	59,530	$	75,581	$	37,019	$	94,433	$	—	$	360,397
Nonperforming	—		138		154		422		386		918		—		2,018
Total Residential Mortgage Loans	$	40,889	$	53,083	$	59,684	$	76,003	$	37,405	$	95,351	$	—	$	362,415

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	49,208	$	21,459	$	9,708	$	2,756	$	917	$	1,911	$	1,783	$	87,742
Nonperforming	74		21		12		—		—		1		3		111
Total Consumer Loans	$	49,282	$	21,480	$	9,720	$	2,756	$	917	$	1,912	$	1,786	$	87,853

Current Period Gross Charge-Offs	$	1,162	$	42	$	23	$	71	$	3	$	1	$	7	$	1,309

Home Equity:
Payment performance
Performing	$	—	$	170	$	236	$	90	$	165	$	1,207	$	296,784	$	298,652
Nonperforming	—		247		252		60		—		102		372		1,033
Total Home Equity Loans	$	—	$	417	$	488	$	150	$	165	$	1,309	$	297,156	$	299,685

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	55	$	—	$	24	$	15	$	94

Residential Mortgage:
Payment performance
Performing	$	56,306	$	65,301	$	85,753	$	41,352	$	17,831	$	94,926	$	—	$	361,469
Nonperforming	11		60		417		287		109		491		—		1,375
Total Residential Mortgage Loans	$	56,317	$	65,361	$	86,170	$	41,639	$	17,940	$	95,417	$	—	$	362,844

Current Period Gross Charge-Offs	$	—	$	—	$	22	$	36	$	—	$	—	$	—	$	58

The Company considers the performance of the loan portfolio and its impact on the allowance for credit loan losses. For certain retail loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in credit cards based on payment activity: