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Loans
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans Loans
Loans were comprised of the following classifications at December 31: 
 20242023
Commercial:  
Commercial and Industrial Loans$591,785 $589,541 
Commercial Real Estate Loans2,224,872 2,121,835 
Agricultural Loans431,037 423,803 
Leases79,253 71,988 
Retail:
Home Equity Loans344,808 299,685 
Consumer Loans81,396 87,853 
Credit Cards22,668 20,351 
Residential Mortgage Loans357,448 362,844 
Subtotal4,133,267 3,977,900 
Less: Unearned Income(8,365)(6,818)
Allowance for Credit Losses(44,436)(43,765)
Loans, net$4,080,466 $3,927,317 

The table above includes $11,178 and $13,237 of purchase credit deteriorated loans as of December 31, 2024 and 2023, respectively.
Allowance for Credit Losses for Loans:

The following tables present the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2024, 2023 and 2022:
2024Commercial
and
Industrial
Loans		Commercial
Real Estate
Loans		Agricultural
Loans		LeasesConsumer
Loans		Home Equity LoansCredit CardsResidential
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 Losses(694)120 1,086 51 962 424 786 40 2,775 
Loans Charged-off(223)(308)(8)— (1,511)(170)(681)— (2,901)
Recoveries Collected55 83 2 — 517 108 32 — 797 
Total Ending Allowance Balance$7,059 $25,818 $4,917 $397 $727 $2,196 $520 $2,802 $44,436 

2023Commercial
and
Industrial
Loans		Commercial
Real Estate
Loans		Agricultural
Loans		LeasesConsumer
Loans		Home Equity LoansCredit CardsResidential
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 Losses(4,190)4,305 (324)137 919 551 563 589 2,550 
Loans Charged-off(1,792)(56)(27)— (1,309)(94)(455)(58)(3,791)
Recoveries Collected154 76 — — 554 33 18 3 838 
Total Ending Allowance Balance$7,921 $25,923 $3,837 $346 $759 $1,834 $383 $2,762 $43,765 

2022Commercial
and
Industrial
Loans		Commercial
Real Estate
Loans		Agricultural
Loans		LeasesConsumer
Loans		Home Equity LoansCredit CardsResidential
Mortgage
Loans		Total
Allowance for Credit Losses:
Beginning Balance$9,554 $19,245 $4,505 $200 $507 $1,061 $240 $1,705 $37,017 
Acquisition of Citizens Union Bank of Shelbyville, KY - PCD Loans376 1,945 689 — 2 — — 105 3,117 
Provision (Benefit) for Credit Losses4,942 463 (1,006)9 991 351 163 437 6,350 
Loans Charged-off(1,149)(79)— — (1,364)(69)(165)(24)(2,850)
Recoveries Collected26 24 — — 459 1 19 5 534 
Total Ending Allowance Balance$13,749 $21,598 $4,188 $209 $595 $1,344 $257 $2,228 $44,168 

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.

The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look-back period includes January 2014 through the current period, on a monthly basis.

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 year ended December 31, 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.
 
The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of December 31, 2024 and 2023:

December 31, 2024Non-Accrual With No Allowance for Credit Loss ⁽¹⁾Non-AccrualLoans Past Due Over 89 Days Still Accruing
Commercial and Industrial Loans$1,346 $5,018 $— 
Commercial Real Estate Loans1,268 1,745 183 
Agricultural Loans655 765 5 
Leases— — — 
Home Equity Loans1,087 1,087 — 
Consumer Loans63 63 — 
Credit Cards54 54 — 
Residential Mortgage Loans1,977 2,202 — 
Total$6,450 $10,934 $188 
(1) Includes non-accrual loans with no allowance for credit loss and are also included in Non-Accrual loans totaling $10,934.
December 31, 2023Non-Accrual With No Allowance for Credit Loss ⁽¹⁾Non-AccrualLoans Past Due Over 89 Days Still Accruing
Commercial and Industrial Loans$1,864 $3,707 $— 
Commercial Real Estate Loans942 1,889 55 
Agricultural Loans665 879 — 
Leases— — — 
Home Equity Loans1,033 1,033 — 
Consumer Loans111 111 — 
Credit Cards142 142 — 
Residential Mortgage Loans1,125 1,375 — 
Total$5,882 $9,136 $55 
(1) Includes non-accrual loans with no allowance for credit loss and are also included in Non-Accrual loans totaling $9,136.

Interest income on non-accrual loans recognized during the years ended December 31, 2024 and 2023 totaled $291 and $106. 

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2024 and 2023:

December 31, 2024Real EstateEquipmentAccounts ReceivableOtherTotal
Commercial and Industrial Loans$5,986 $90 $— $58 $6,134 
Commercial Real Estate Loans7,293 — — — 7,293 
Agricultural Loans2,777 263 — — 3,040 
Leases— — — — — 
Home Equity Loans423 — — — 423 
Consumer Loans10 — — — 10 
Credit Cards— — — — — 
Residential Mortgage Loans523 — — — 523 
Total$17,012 $353 $— $58 $17,423 

December 31, 2023Real EstateEquipmentAccounts ReceivableOtherTotal
Commercial and Industrial Loans$3,668 $49 $— $1,888 $5,605 
Commercial Real Estate Loans8,553 — — — 8,553 
Agricultural Loans3,338 1,055 — — 4,393 
Leases— — — — — 
Home Equity Loans420 — — — 420 
Consumer Loans9 — — — 9 
Credit Cards— — — — — 
Residential Mortgage Loans753 — — — 753 
Total$16,741 $1,104 $— $1,888 $19,733 
The following tables present the aging of the amortized cost basis in past due loans by class of loans as of December 31, 2024 and 2023:

December 31, 202430-59 Days
Past Due		60-89 Days
Past Due		Greater Than 89 Days Past DueTotal
Past Due		Loans Not
Past Due		Total
Commercial and Industrial Loans$531 $36 $4,395 $4,962 $586,823 $591,785 
Commercial Real Estate Loans546 673 1,368 2,587 2,222,285 2,224,872 
Agricultural Loans241 — 428 669 430,368 431,037 
Leases— — — — 79,253 79,253 
Home Equity Loans1,515 544 1,087 3,146 341,662 344,808 
Consumer Loans185 194 63 442 80,954 81,396 
Credit Cards398 98 54 550 22,118 22,668 
Residential Mortgage Loans5,744 3,644 2,035 11,423 346,025 357,448 
Total$9,160 $5,189 $9,430 $23,779 $4,109,488 $4,133,267 
December 31, 202330-59 Days
Past Due		60-89 Days
Past Due		Greater Than 89 Days Past DueTotal
Past Due		Loans Not
Past Due		Total
      
Commercial and Industrial Loans$832 $257 $3,299 $4,388 $585,153 $589,541 
Commercial Real Estate Loans1,215 484 938 2,637 2,119,198 2,121,835 
Agricultural Loans5 248 497 750 423,053 423,803 
Leases— — — — 71,988 71,988 
Home Equity Loans1,016 571 1,033 2,620 297,065 299,685 
Consumer Loans658 84 110 852 87,001 87,853 
Credit Cards165 87 142 394 19,957 20,351 
Residential Mortgage Loans7,362 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 

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

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 in 2024 or 2023 resulted in the permanent reduction of the recorded investment in the loan.

At December 31, 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 year ended December 31, 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.

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 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:
 
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
 
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the
liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
 
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
 
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

The following table presents the risk category of loans and current period gross charge-offs as of December 31, 2024 by loan class and vintage year:

Term Loans Amortized Cost Basis by Origination Year
As of December 31, 202420242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Commercial and Industrial:
Risk Rating
Pass$118,037 $86,412 $93,406 $64,298 $17,140 $49,181 $143,096 $571,570 
Special Mention147 1,709 787 1,061 1,202 2,044 1,023 7,973 
Substandard108 627 181 3,164 908 3,619 3,635 12,242 
Doubtful— — — — — — — — 
Total Commercial and Industrial Loans$118,292 $88,748 $94,374 $68,523 $19,250 $54,844 $147,754 $591,785 
Current Period Gross Charge-Offs$— $4 $96 $64 $— $13 $46 $223 
Commercial Real Estate:
Risk Rating
Pass$327,488 $315,981 $410,135 $394,698 $187,849 $502,263 $39,271 $2,177,685 
Special Mention433 13,433 1,740 5,395 1,975 12,349 200 35,525 
Substandard— 181 566 5,155 — 5,760 — 11,662 
Doubtful— — — — — — — — 
Total Commercial Real Estate Loans$327,921 $329,595 $412,441 $405,248 $189,824 $520,372 $39,471 $2,224,872 
Current Period Gross Charge-Offs$— $— $— $— $— $308 $— $308 
Agricultural:
Risk Rating
Pass$47,179 $35,379 $48,105 $33,666 $35,726 $103,702 $102,251 $406,008 
Special Mention547 1,426 146 822 5,075 10,676 2,065 20,757 
Substandard175 — — — — 4,097 — 4,272 
Doubtful— — — — — — — — 
Total Agricultural Loans$47,901 $36,805 $48,251 $34,488 $40,801 $118,475 $104,316 $431,037 
Current Period Gross Charge-Offs$— $— $— $— $— $8 $— $8 
Leases:
Risk Rating
Pass$32,214 $26,392 $8,272 $6,578 $2,128 $3,669 $— $79,253 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total Leases$32,214 $26,392 $8,272 $6,578 $2,128 $3,669 $— $79,253 
Current Period Gross Charge-Offs$— $— $— $— $— $— $— $— 
As of December 31, 2023, the risk category of loans by class of loans is as follows:

Term Loans Amortized Cost Basis by Origination Year
As of December 31, 202320232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Commercial and Industrial:
Risk Rating
Pass$112,626 $134,590 $80,738 $28,492 $32,585 $45,764 $134,936 $569,731 
Special Mention47 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 and 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 Mention13,906 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 Mention1,495 164 903 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, home equity 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 table presents the amortized cost in residential, home equity and consumer loans based on payment activity as well as the current period gross charge-offs for the periods ended December 31, 2024 and 2023.
Term Loans Amortized Cost Basis by Origination Year
As of December 31, 202420242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Consumer:
Payment performance
Performing$40,504 $20,828 $9,359 $5,469 $1,181 $1,542 $2,450 $81,333 
Nonperforming26 1 13 15 — 8 — 63 
Total Consumer Loans$40,530 $20,829 $9,372 $5,484 $1,181 $1,550 $2,450 $81,396 
Current Period Gross Charge-Offs$1,212 $181 $72 $40 $— $2 $4 $1,511 
Home Equity:
Payment performance
Performing$172 $161 $3,721 $773 $478 $3,532 $334,884 $343,721 
Nonperforming— 128 277 24 25 604 29 1,087 
Total Home Equity Loans$172 $289 $3,998 $797 $503 $4,136 $334,913 $344,808 
Current Period Gross Charge-Offs$— $— $62 $99 $— $— $9 $170 
Residential Mortgage:
Payment performance
Performing$48,957 $51,059 $57,988 $73,239 $35,370 $88,633 $— $355,246 
Nonperforming— 214 229 669 234 856 — 2,202 
Total Residential Mortgage Loans$48,957 $51,273 $58,217 $73,908 $35,604 $89,489 $— $357,448 
Current Period Gross Charge-Offs$— $— $— $— $— $— $— $— 
The following table presents the amortized cost in residential, home equity and consumer loans based on payment activity for the period ended December 31, 2023.
Term Loans Amortized Cost Basis by Origination Year
As of December 31, 202320232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Consumer:
Payment performance
Performing$49,208 $21,459 $9,708 $2,756 $917 $1,911 $1,783 $87,742 
Nonperforming74 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 
Nonperforming11 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 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 retail loans based on payment activity:

Credit CardsDecember 31, 2024December 31, 2023
Performing$22,614 $20,209 
Nonperforming54 142 
Total$22,668 $20,351 

The following table presents loans purchased and/or sold during the year by portfolio segment:
Commercial and Industrial LoansCommercial Real Estate LoansAgricultural LoansLeasesConsumer LoansHome Equity LoansCredit CardsResidential Mortgage LoansTotal
December 31, 2024
Purchases$— $— $— $— $— $— $— $— $— 
Sales— — — — — — — — — 
December 31, 2023
Purchases$— $1,502 $— $— $— $— $— $— $1,502 
Sales— — — — — — — — — 
Certain directors, executive officers, and principal shareholders of the Company, including their immediate families and companies in which they are principal owners, were loan customers of the Company during 2024. A summary of the activity of these loans follows:
Balance
January 1,
2024		AdditionsChanges in Persons or Interests IncludedDeductionsBalance
December 31,
2024
CollectedCharged-off
$39,822 $5,060 $(3,505)$(6,181)$— $35,196