
	March 31, 2025		December 31, 2024
Commercial:
Commercial and Industrial Loans	$	732,328	$	591,785
Commercial Real Estate Loans	3,055,074		2,224,872
Agricultural Loans	455,678		431,037
Leases	79,745		79,253
Retail:
Home Equity Loans	406,280		344,808
Consumer Loans	110,174		81,396
Credit Cards	27,443		22,668
Residential Mortgage Loans	788,222		357,448

Subtotal	5,654,944		4,133,267
Less: Unearned Income	(8,418)		(8,365)
Allowance for Credit Losses	(75,158)		(44,436)
Loans, Net	$	5,571,368	$	4,080,466


March 31, 2025	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	$	7,059	$	25,818	$	4,917	$	397	$	727	$	2,196	$	520	$	2,802	$	44,436
Change in Accounting Method	1,438		(3,428)		(2,860)		720		(284)		956		(4)		1,788		(1,674)
2/1/2025 Acquired Heartland PCD	5,246		7,080		3,352		—		20		11		—		199		15,908
Day 2 CECL Provision - Heartland	1,797		7,522		170		—		179		570		—		5,962		16,200
Provision (Benefit) for Credit Loss Expense	(75)		819		(273)		34		227		208		245		(411)		774
Loans Charged-off	(126)		—		—		—		(325)		—		(174)		—		(625)
Recoveries Collected	4		—		—		—		113		1		21		—		139
Total Ending Allowance Balance	$	15,343	$	37,811	$	5,306	$	1,151	$	657	$	3,942	$	608	$	10,340	$	75,158


March 31, 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	(556)		833		(187)		27		269		294		150		70		900
Loans Charged-off	(102)		(308)		—		—		(368)		(134)		(149)		—		(1,061)
Recoveries Collected	3		4		—		—		125		7		11		—		150
Total Ending Allowance Balance	$	7,266	$	26,452	$	3,650	$	373	$	785	$	2,001	$	395	$	2,832	$	43,754

The ACL is a valuation account that is deducted from the amortized cost of loans receivable to present the net amount expected to be collected. Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed, and subsequent recoveries, if any, are credited to the ACL. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company records the changes in the allowance on loans through earnings as a “Provision for Credit Losses” in the Consolidated Statements of Income.

At March 31, 2025, the Company changed its method for estimating the allowance for credit losses to the discounted cash flow model on a prospective basis for all loan segments except for the credit card loan segment. Prior to March 31, 2025, the Company utilized the static pool methodology in determining future credit losses. While both methodologies permit the Company to develop reasonable and supportable forecasts, by utilizing the discounted cash flow method, the Company has the ability to better evaluate multiple economic scenarios by capturing macroeconomic conditions within the model assumptions and calculations. This change in methodology resulted in a decline of $1,674 to the allowance.

Management’s judgment in determining the level of the allowance is based on evaluations of historical loan losses, current conditions and reasonable and supportable forecasts relevant to the collectability of loans. The methodology for estimating the amount reported in the ACL is the sum of two main components, an allowance assessed on a collective basis for pools of loans that share similar risk characteristics and an allowance assessed on individual loans that do not share similar risk characteristics with other loans. Loans that share common risk characteristics are evaluated collectively using a discounted cash flow approach. The discounted cash flow approach used by the Company utilizes loan-level cash flow projections, pool-level assumptions, multiple economic scenarios from Moody’s, historical and peer group losses and qualitative assumptions.

The Company evaluates multiple economic scenarios that are designed to capture a range of supportable macroeconomic conditions, taking into consideration the forecasted direction of the economic and business environment and its likely impact on the estimated allowance as compared to the historical losses over the reasonable and supportable time frame. Economic forecasts for the current period are uploaded to the model, which targets certain forecasted macroeconomic factors, such as unemployment rate, value of construction, agriculture prices, housing price index, vacancy rates, debt service burden, and certain rate and market indices. The Company determines the weighting of each scenario based upon historical trends and economic, monetary, and fiscal conditions within the Company’s footprint that could impact future credit losses.

Loans that do not share similar risk characteristics are evaluated on an individual basis to determine the expected allowance for credit loss. 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.

Commercial and Industrial Loans - The principal risk of commercial and industrial loans is that these loans are primarily based on the identified cash flow of the borrower and secondarily on the collateral underlying the loans. Most commercial loans are secured by accounts receivable, inventory and equipment. If cash flow from business operations is reduced, the borrower’s ability to repay the loan may diminish, and over time, it may also be difficult to substantiate current value of inventory and equipment. Repayment of these loans is more sensitive than other types of loans to adverse conditions in the general economy.

Commercial Real Estate Loans - Commercial real estate lending is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. Commercial real estate loans are collateralized by the borrower’s underlying real estate. Therefore, diminished cash flows not only affects the ability to repay the loan, it may also reduce the underlying collateral value.

Residential Mortgage Loans - Residential mortgage loans are typically secured by 1-4 family residences that are owner-occupied. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by unemployment levels in the market area due to economic conditions. Repayment may also be impacted by changes in residential property values.

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.


March 31, 2025	Non-Accrual With No Allowance for Credit Loss (1)		Total Non-Accrual		Loans Past Due Over 89 Days Still Accruing

Commercial and Industrial Loans	$	1,301	$	6,834	$	63
Commercial Real Estate Loans	1,386		4,498		62
Agricultural Loans	139		488		399
Leases	—		—		—
Home Equity Loans	891		989		106
Consumer Loans	30		33		—
Credit Cards	290		290		—
Residential Mortgage Loans	3,476		4,726		84
Total	$	7,513	$	17,858	$	714


December 31, 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	$	1,346	$	5,018	$	—
Commercial Real Estate Loans	1,268		1,745		183
Agricultural Loans	655		765		5
Leases	—		—		—
Home Equity Loans	1,087		1,087		—
Consumer Loans	63		63		—
Credit Cards	54		54		—
Residential Mortgage Loans	1,977		2,202		—
Total	$	6,450	$	10,934	$	188


March 31, 2025	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	11,726	$	6,076	$	—	$	6,407	$	24,209
Commercial Real Estate Loans	38,193		—		—		—		38,193
Agricultural Loans	2,654		665		—		4,853		8,172
Leases	—		—		—		—		—
Home Equity Loans	528		—		—		—		528
Consumer Loans	10		12		—		—		22
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	2,229		—		—		—		2,229
Total	$	55,340	$	6,753	$	—	$	11,260	$	73,353


December 31, 2024	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	5,986	$	90	$	—	$	58	$	6,134
Commercial Real Estate Loans	7,293		—		—		—		7,293
Agricultural Loans	2,777		263		—		—		3,040
Leases	—		—		—		—		—
Home Equity Loans	423		—		—		—		423
Consumer Loans	10		—		—		—		10
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	523		—		—		—		523
Total	$	17,012	$	353	$	—	$	58	$	17,423


March 31, 2025	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	$	858	$	1,051	$	5,389	$	7,298	$	725,030	$	732,328
Commercial Real Estate Loans	3,975		531		4,537		9,043		3,046,031		3,055,074
Agricultural Loans	—		—		786		786		454,892		455,678
Leases	—		—		—		—		79,745		79,745
Home Equity Loans	2,426		166		1,095		3,687		402,593		406,280
Consumer Loans	841		8		32		881		109,293		110,174
Credit Cards	90		66		290		446		26,997		27,443
Residential Mortgage Loans	10,953		110		4,290		15,353		772,869		788,222
Total	$	19,143	$	1,932	$	16,419	$	37,494	$	5,617,450	$	5,654,944


December 31, 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	$	531	$	36	$	4,395	$	4,962	$	586,823	$	591,785
Commercial Real Estate Loans	546		673		1,368		2,587		2,222,285		2,224,872
Agricultural Loans	241		—		428		669		430,368		431,037
Leases	—		—		—		—		79,253		79,253
Home Equity Loans	1,515		544		1,087		3,146		341,662		344,808
Consumer Loans	185		194		63		442		80,954		81,396
Credit Cards	398		98		54		550		22,118		22,668
Residential Mortgage Loans	5,744		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

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 months ended March 31, 2025, or the year ended December 31, 2024, resulted in a permanent reduction of the recorded investment in the loan.

During the three months ended March 31, 2025 and 2024, 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 months ended March 31, 2025 and 2024 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 March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	36,196	$	127,594	$	84,533	$	103,045	$	69,351	$	60,733	$	209,007	$	690,459
Special Mention	217		620		1,718		536		1,179		3,298		3,473		11,041
Substandard	—		466		3,932		1,264		4,710		10,852		9,604		30,828
Doubtful	—		—		—		—		—		—		—		—
Total Commercial & Industrial Loans	$	36,413	$	128,680	$	90,183	$	104,845	$	75,240	$	74,883	$	222,084	$	732,328

Current Period Gross Charge-Offs	$	—	$	99	$	—	$	27	$	—	$	—	$	—	$	126

Commercial Real Estate:
Risk Rating
Pass	$	100,815	$	421,013	$	429,313	$	569,166	$	484,724	$	887,938	$	52,412	$	2,945,381
Special Mention	95		1,721		13,363		9,729		14,726		26,933		62		66,629
Substandard	86		—		702		3,071		6,804		31,993		408		43,064
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	100,996	$	422,734	$	443,378	$	581,966	$	506,254	$	946,864	$	52,882	$	3,055,074

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

Agricultural:
Risk Rating
Pass	$	13,885	$	42,579	$	38,669	$	52,128	$	36,885	$	145,867	$	93,837	$	423,850
Special Mention	—		806		1,576		509		652		15,318		3,576		22,437
Substandard	—		421		—		4,805		362		3,640		163		9,391
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	13,885	$	43,806	$	40,245	$	57,442	$	37,899	$	164,825	$	97,576	$	455,678

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

Leases:
Risk Rating
Pass	$	7,408	$	30,083	$	24,567	$	7,279	$	5,183	$	5,225	$	—	$	79,745
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	7,408	$	30,083	$	24,567	$	7,279	$	5,183	$	5,225	$	—	$	79,745

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


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	118,037	$	86,412	$	93,406	$	64,298	$	17,140	$	49,181	$	143,096	$	571,570
Special Mention	147		1,709		787		1,061		1,202		2,044		1,023		7,973
Substandard	108		627		181		3,164		908		3,619		3,635		12,242
Doubtful	—		—		—		—		—		—		—		—
Total Commercial & 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 Mention	433		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 Mention	547		1,426		146		822		5,075		10,676		2,065		20,757
Substandard	175		—		—		—		—		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	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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 March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	10,286	$	54,181	$	21,670	$	10,941	$	6,011	$	3,772	$	3,280	$	110,141
Nonperforming	—		3		9		18		—		1		2		33
Total Consumer Loans	$	10,286	$	54,184	$	21,679	$	10,959	$	6,011	$	3,773	$	3,282	$	110,174

Current Period Gross Charge-Offs	$	261	$	15	$	23	$	11	$	15	$	—	$	—	$	325

Home Equity:
Payment performance
Performing	$	—	$	489	$	728	$	4,022	$	789	$	4,537	$	394,726	$	405,291
Nonperforming	—		—		128		401		42		418		—		989
Total Home Equity Loans	$	—	$	489	$	856	$	4,423	$	831	$	4,955	$	394,726	$	406,280

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

Residential Mortgage:
Payment performance
Performing	$	15,575	$	86,517	$	111,678	$	205,593	$	155,912	$	208,221	$	—	$	783,496
Nonperforming	—		83		295		1,354		1,256		1,738		—		4,726
Total Residential Mortgage Loans	$	15,575	$	86,600	$	111,973	$	206,947	$	157,168	$	209,959	$	—	$	788,222

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


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	40,504	$	20,828	$	9,359	$	5,469	$	1,181	$	1,542	$	2,450	$	81,333
Nonperforming	26		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 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: