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Loans | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Loans | Loans Loans were comprised of the following classifications:
|  | September 30, 2025 |  | December 31, 2024
Commercial: |  |  |  |
Commercial and Industrial Loans |  | $ | 730,134 |  |  | $ | 591,785 |
Commercial Real Estate Loans |  | 3,103,181 |  |  | 2,224,872 |
Agricultural Loans |  | 472,807 |  |  | 431,037 |
Leases |  | 85,088 |  |  | 79,253 |
Retail: |  |  |  |
Home Equity Loans |  | 456,839 |  |  | 344,808 |
Consumer Loans |  | 119,642 |  |  | 81,396 |
Credit Cards |  | 27,261 |  |  | 22,668 |
Residential Mortgage Loans |  | 792,670 |  |  | 357,448 |
Subtotal |  | 5,787,622 |  |  | 4,133,267 |
Less: Unearned Income |  | (9,117) |  |  | (8,365) |
Allowance for Credit Losses |  | (76,057) |  |  | (44,436) |
Loans, Net |  | $ | 5,702,448 |  |  | $ | 4,080,466 |
The table above includes $99,067 and $11,178 of purchase credit deteriorated loans as of September 30, 2025 and December 31, 2024, respectively. As further described in Note 16, during 2025 the Company acquired loans at fair value as part of a business combination. The table below summarizes the loans acquired on February 1, 2025.
|  | Acquired Loan Balance |  | Fair Value Discount |  | Fair Value
Bank Acquisition |  | $ | 1,569,036 |  |  | $ | (65,658) |  |  | $ | 1,503,378 |
The table below summarizes the remaining carrying amount of acquired loans included in the September 30, 2025 table above.
|  | Commercial and Industrial Loans |  | Commercial Real Estate Loans |  | Agricultural Loans |  | Leases |  | Consumer Loans |  | Home Equity Loans |  | Credit Cards |  | Residential Mortgage Loans |  | Total
Loan Balance |  | $ | 127,504 |  |  | $ | 760,358 |  |  | $ | 43,596 |  |  | $ | — |  |  | $ | 27,187 |  |  | $ | 57,919 |  |  | $ | — |  |  | $ | 415,709 |  |  | $ | 1,432,273 |
Fair Value (Discount)/Premium |  | (3,061) |  |  | (16,134) |  |  | (640) |  |  | — |  |  | (222) |  |  | (959) |  |  | — |  |  | (33,713) |  |  | (54,729) |
The Company has purchased loans for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of these loans is as follows:
|  | 2025
Purchase Price of Loans at Acquisition |  | $ | 107,285 |
Allowance for Credit Losses at Acquisition |  | 16,503 |
Non-Credit Discount/(Premium) at Acquisition |  | 5,554 |
Total |  | $ | 129,342 |
Allowance for Credit Losses for Loans The following tables present the activity in the allowance for credit losses by portfolio segment for the three months ended September 30, 2025 and 2024:
September 30, 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 |  | $ | 17,739 |  |  | $ | 38,803 |  |  | $ | 3,130 |  |  | $ | 1,192 |  |  | $ | 691 |  |  | $ | 4,334 |  |  | $ | 621 |  |  | $ | 9,595 |  |  | $ | 76,105 |
Provision (Benefit) for Credit Loss Expense |  | 272 |  |  | 329 |  |  | 98 |  |  | (16) |  |  | 303 |  |  | 46 |  |  | 26 |  |  | (358) |  |  | 700 |
Loans Charged-off |  | (384) |  |  | — |  |  | — |  |  | — |  |  | (446) |  |  | (71) |  |  | (182) |  |  | (43) |  |  | (1,126) |
Recoveries Collected |  | 6 |  |  | — |  |  | — |  |  | — |  |  | 138 |  |  | 5 |  |  | 208 |  |  | 21 |  |  | 378 |
Total Ending Allowance Balance |  | $ | 17,633 |  |  | $ | 39,132 |  |  | $ | 3,228 |  |  | $ | 1,176 |  |  | $ | 686 |  |  | $ | 4,314 |  |  | $ | 673 |  |  | $ | 9,215 |  |  | $ | 76,057 |
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 |
The following tables present the activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2025 and 2024:
September 30, 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 |  |  | (3,271) |  |  | (1,655) |  |  | 720 |  |  | (284) |  |  | 1,056 |  |  | (24) |  |  | 2,013 |  |  | (7) |
2/1/2025 Acquired Heartland PCD |  | 5,246 |  |  | 7,675 |  |  | 3,352 |  |  | — |  |  | 20 |  |  | 11 |  |  | — |  |  | 199 |  |  | 16,503 |
Day 2 CECL Provision - Heartland |  | 1,797 |  |  | 7,522 |  |  | 170 |  |  | — |  |  | 179 |  |  | 570 |  |  | — |  |  | 5,962 |  |  | 16,200 |
Provision (Benefit) for credit loss expense |  | 2,817 |  |  | 1,414 |  |  | (3,556) |  |  | 59 |  |  | 789 |  |  | 538 |  |  | 657 |  |  | (1,711) |  |  | 1,007 |
Loans charged-off |  | (757) |  |  | (26) |  |  | — |  |  | — |  |  | (1,105) |  |  | (71) |  |  | (742) |  |  | (71) |  |  | (2,772) |
Recoveries collected |  | 33 |  |  | — |  |  | — |  |  | — |  |  | 360 |  |  | 14 |  |  | 262 |  |  | 21 |  |  | 690 |
Total ending allowance balance |  | $ | 17,633 |  |  | $ | 39,132 |  |  | $ | 3,228 |  |  | $ | 1,176 |  |  | $ | 686 |  |  | $ | 4,314 |  |  | $ | 673 |  |  | $ | 9,215 |  |  | $ | 76,057 |
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 |
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 had an insignificant impact on the allowance in 2025. 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. Estimated cash flows consider the principal and interest in accordance with the contractual term of the loan and estimated prepayments. Contractual cash flows are based on the amortized cost and are adjusted for balances guaranteed by governmental entities. Estimated cash flows also reflect calculated probabilities of default, loss given default rates, and prepayment and curtailment estimates, as well as qualitative factors. The probability of default estimates are generated using a regression model that estimates the likelihood of a loan being charged-off during its life. The regression model uses combinations of variables to assess historical loss correlations to economic factors and these variables become model forecast inputs for economic factors that are updated in the model each period. As indicated above, the Company uses an economic forecast provided by a third-party for these model inputs. 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. The Company has continued to utilize the following portfolio segments and identified the risk characteristics of each portfolio listed below: 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. Agricultural Loans - This portfolio is diversified between real estate financing, equipment financing and lines of credit in various segments including grain production, poultry production and livestock production. Mitigating any concentration of risk that may exist in the Company’s agricultural loan portfolio is the use of federal government guarantee programs. Leases - Leases are primarily for equipment leased to varying types of businesses. If the cash flow from business operations is reduced, the business’s ability to repay the lease is diminished as well. Home Equity Loans - Home equity loans are generally 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. Consumer Loans - Consumer loan repayment is typically dependent on the borrower remaining employed through the life of the loan as well as the borrower maintaining the underlying collateral adequately. Credit Cards - Credit card loans are unsecured and repayment is primarily dependent on the personal income of the borrower. 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. The following tables present the amortized cost in non-accrual loans and loans past due over 89 days still accruing by class of loans as of September 30, 2025 and December 31, 2024:
September 30, 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 |  | $ | 1,266 |  |  | $ | 8,789 |  |  | $ | — |
Commercial Real Estate Loans |  | 1,256 |  |  | 7,481 |  |  | — |
Agricultural Loans |  | 1,073 |  |  | 2,393 |  |  | — |
Leases |  | — |  |  | — |  |  | — |
Home Equity Loans |  | 885 |  |  | 885 |  |  | — |
Consumer Loans |  | 57 |  |  | 57 |  |  | — |
Credit Cards |  | 58 |  |  | 58 |  |  | — |
Residential Mortgage Loans |  | 3,103 |  |  | 4,013 |  |  | — |
Total |  | $ | 7,698 |  |  | $ | 23,676 |  |  | $ | — |
(1) Includes non-accrual loans with no allowance for credit loss and are also included in Total Non-Accrual loans of $23,676. Interest income on non-accrual loans recognized during the three and nine months ended September 30, 2025 totaled $226 and $429, respectively.
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 |
(1) Includes non-accrual loans with no allowance for credit loss and are also included in Total Non-Accrual loans of $10,934. Interest income on non-accrual loans recognized during the year ended December 31, 2024 totaled $291. The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2025 and December 31, 2024:
September 30, 2025 |  | Real Estate |  | Equipment |  | Accounts Receivable |  | Other |  | Total
Commercial and Industrial Loans |  | $ | 10,038 |  |  | $ | 7,111 |  |  | $ | — |  |  | $ | 10,178 |  |  | $ | 27,327 |
Commercial Real Estate Loans |  | 36,815 |  |  | 502 |  |  | — |  |  | — |  |  | 37,317 |
Agricultural Loans |  | 3,437 |  |  | 204 |  |  | — |  |  | 645 |  |  | 4,286 |
Leases |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Home Equity Loans |  | 424 |  |  | — |  |  | — |  |  | — |  |  | 424 |
Consumer Loans |  | 10 |  |  | 10 |  |  | — |  |  | — |  |  | 20 |
Credit Cards |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential Mortgage Loans |  | 1,448 |  |  | — |  |  | — |  |  | — |  |  | 1,448 |
Total |  | $ | 52,172 |  |  | $ | 7,827 |  |  | $ | — |  |  | $ | 10,823 |  |  | $ | 70,822 |
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 |
The following tables present the aging of the amortized cost basis in past due loans by class of loans as of September 30, 2025 and December 31, 2024:
September 30, 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 |  | $ | 451 |  |  | $ | 200 |  |  | $ | 7,934 |  |  | $ | 8,585 |  |  | $ | 721,549 |  |  | $ | 730,134 |
Commercial Real Estate Loans |  | 1,647 |  |  | 929 |  |  | 5,161 |  |  | 7,737 |  |  | 3,095,444 |  |  | 3,103,181 |
Agricultural Loans |  | 1,019 |  |  | 365 |  |  | 1,221 |  |  | 2,605 |  |  | 470,202 |  |  | 472,807 |
Leases |  | — |  |  | — |  |  | — |  |  | — |  |  | 85,088 |  |  | 85,088 |
Home Equity Loans |  | 2,509 |  |  | 365 |  |  | 885 |  |  | 3,759 |  |  | 453,080 |  |  | 456,839 |
Consumer Loans |  | 653 |  |  | 47 |  |  | 57 |  |  | 757 |  |  | 118,885 |  |  | 119,642 |
Credit Cards |  | 271 |  |  | 133 |  |  | 58 |  |  | 462 |  |  | 26,799 |  |  | 27,261 |
Residential Mortgage Loans |  | 7,409 |  |  | 2,429 |  |  | 3,754 |  |  | 13,592 |  |  | 779,078 |  |  | 792,670 |
Total |  | $ | 13,959 |  |  | $ | 4,468 |  |  | $ | 19,070 |  |  | $ | 37,497 |  |  | $ | 5,750,125 |  |  | $ | 5,787,622 |
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 |
Loan Modifications Made to Borrowers Experiencing Financial Difficulty 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 or nine months ended September 30, 2025, or the year ended December 31, 2024, resulted in a permanent reduction of the recorded investment in the loan. During the three and nine months ended September 30, 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 and nine months ended September 30, 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.
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. Based on the analysis performed at September 30, 2025 and December 31, 2024, the risk category of loans by class of loans is as follows:
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |
As of September 30, 2025 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Total
Commercial and Industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 96,905 |  |  | $ | 111,892 |  |  | $ | 69,327 |  |  | $ | 84,451 |  |  | $ | 57,193 |  |  | $ | 50,489 |  |  | $ | 212,548 |  |  | $ | 682,805 |
Special Mention |  | 1,349 |  |  | 980 |  |  | 2,136 |  |  | 1,292 |  |  | 649 |  |  | 2,582 |  |  | 7,258 |  |  | 16,246 |
Substandard |  | 100 |  |  | 864 |  |  | 3,112 |  |  | 5,665 |  |  | 4,536 |  |  | 9,880 |  |  | 6,926 |  |  | 31,083 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial & Industrial Loans |  | $ | 98,354 |  |  | $ | 113,736 |  |  | $ | 74,575 |  |  | $ | 91,408 |  |  | $ | 62,378 |  |  | $ | 62,951 |  |  | $ | 226,732 |  |  | $ | 730,134 |
Current Period Gross Charge-Offs |  | $ | — |  |  | $ | 306 |  |  | $ | — |  |  | $ | 138 |  |  | $ | — |  |  | $ | 77 |  |  | $ | 236 |  |  | $ | 757 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 306,962 |  |  | $ | 428,190 |  |  | $ | 395,842 |  |  | $ | 534,455 |  |  | $ | 451,968 |  |  | $ | 804,623 |  |  | $ | 60,613 |  |  | $ | 2,982,653 |
Special Mention |  | 401 |  |  | 2,835 |  |  | 16,711 |  |  | 5,681 |  |  | 15,304 |  |  | 39,417 |  |  | — |  |  | 80,349 |
Substandard |  | 74 |  |  | — |  |  | 693 |  |  | 3,165 |  |  | 6,820 |  |  | 29,295 |  |  | 132 |  |  | 40,179 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Commercial Real Estate Loans |  | $ | 307,437 |  |  | $ | 431,025 |  |  | $ | 413,246 |  |  | $ | 543,301 |  |  | $ | 474,092 |  |  | $ | 873,335 |  |  | $ | 60,745 |  |  | $ | 3,103,181 |
Current Period Gross Charge-Offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |  |  | $ | 26 |
Agricultural: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 39,779 |  |  | $ | 37,640 |  |  | $ | 34,027 |  |  | $ | 47,469 |  |  | $ | 30,116 |  |  | $ | 132,789 |  |  | $ | 106,705 |  |  | $ | 428,525 |
Special Mention |  | 3,122 |  |  | 2,433 |  |  | 2,936 |  |  | 2,097 |  |  | 3,169 |  |  | 11,800 |  |  | 11,300 |  |  | 36,857 |
Substandard |  | — |  |  | 369 |  |  | 843 |  |  | 64 |  |  | 100 |  |  | 4,997 |  |  | 1,052 |  |  | 7,425 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Agricultural Loans |  | $ | 42,901 |  |  | $ | 40,442 |  |  | $ | 37,806 |  |  | $ | 49,630 |  |  | $ | 33,385 |  |  | $ | 149,586 |  |  | $ | 119,057 |  |  | $ | 472,807 |
Current Period Gross Charge-Offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 24,923 |  |  | $ | 26,462 |  |  | $ | 21,492 |  |  | $ | 5,132 |  |  | $ | 3,029 |  |  | $ | 4,050 |  |  | $ | — |  |  | $ | 85,088 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Leases |  | $ | 24,923 |  |  | $ | 26,462 |  |  | $ | 21,492 |  |  | $ | 5,132 |  |  | $ | 3,029 |  |  | $ | 4,050 |  |  | $ | — |  |  | $ | 85,088 |
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 September 30, 2025 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Total
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 43,566 |  |  | $ | 41,669 |  |  | $ | 15,304 |  |  | $ | 5,905 |  |  | $ | 4,060 |  |  | $ | 2,902 |  |  | $ | 6,179 |  |  | $ | 119,585 |
Nonperforming |  | 1 |  |  | 12 |  |  | — |  |  | 44 |  |  | — |  |  | — |  |  | — |  |  | 57 |
Total Consumer Loans |  | $ | 43,567 |  |  | $ | 41,681 |  |  | $ | 15,304 |  |  | $ | 5,949 |  |  | $ | 4,060 |  |  | $ | 2,902 |  |  | $ | 6,179 |  |  | $ | 119,642 |
Current Period Gross Charge-Offs |  | $ | 960 |  |  | $ | 32 |  |  | $ | 65 |  |  | $ | 30 |  |  | $ | 15 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 1,105 |
Home Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 360 |  |  | $ | 1,004 |  |  | $ | 1,503 |  |  | $ | 4,161 |  |  | $ | 1,113 |  |  | $ | 4,625 |  |  | $ | 443,188 |  |  | $ | 455,954 |
Nonperforming |  | — |  |  | 58 |  |  | 128 |  |  | 294 |  |  | 225 |  |  | 155 |  |  | 25 |  |  | 885 |
Total Home Equity Loans |  | $ | 360 |  |  | $ | 1,062 |  |  | $ | 1,631 |  |  | $ | 4,455 |  |  | $ | 1,338 |  |  | $ | 4,780 |  |  | $ | 443,213 |  |  | $ | 456,839 |
Current Period Gross Charge-Offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 68 |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 71 |
Residential Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 69,752 |  |  | $ | 86,995 |  |  | $ | 102,557 |  |  | $ | 194,918 |  |  | $ | 146,897 |  |  | $ | 187,538 |  |  | $ | — |  |  | $ | 788,657 |
Nonperforming |  | — |  |  | 220 |  |  | 1,190 |  |  | 228 |  |  | 845 |  |  | 1,530 |  |  | — |  |  | 4,013 |
Total Residential Mortgage Loans |  | $ | 69,752 |  |  | $ | 87,215 |  |  | $ | 103,747 |  |  | $ | 195,146 |  |  | $ | 147,742 |  |  | $ | 189,068 |  |  | $ | — |  |  | $ | 792,670 |
Current Period Gross Charge-Offs |  | $ | — |  |  | $ | — |  |  | $ | 39 |  |  | $ | — |  |  | $ | 32 |  |  | $ | — |  |  | $ | — |  |  | $ | 71 |
|  | 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:
Credit Cards |  | September 30, 2025 |  | December 31, 2024
Performing |  | $ | 27,203 |  |  | $ | 22,614 |
Nonperforming |  | 58 |  |  | 54 |
Total |  | $ | 27,261 |  |  | $ | 22,668 |
The following tables present loans purchased and/or sold during the year by portfolio segment and excludes the business combination activity:
September 30, 2025 |  | Commercial and Industrial Loans |  | Commercial Real Estate Loans |  | Agricultural Loans |  | Leases |  | Consumer Loans |  | Home Equity Loans |  | Credit Cards |  | Residential Mortgage Loans |  | Total
Purchases |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Sales |  | — |  |  | — |  |  | 2,391 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,391 |
December 31, 2024 |  | Commercial and Industrial Loans |  | Commercial Real Estate Loans |  | Agricultural Loans |  | Leases |  | Consumer Loans |  | Home Equity Loans |  | Credit Cards |  | Residential Mortgage Loans |  | Total
Purchases |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Sales |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |

X
- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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