Loans are stated at amortized cost net of an allowance for credit losses. Amortized cost is the unpaid principal net of unearned premiums and discounts, and net deferred origination fees and costs. Deferred loan origination fees are reduced by loan origination costs and are amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding.

Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at fair value, taking into consideration future commitments to sell the loans. These loans are primarily for 1-4 family residential properties.

Accrued interest on loans, which is excluded from the amortized cost of the balances above, totaled $33.0 million and $33.7 million at June 30, 2025 and December 31, 2024, respectively.

Most of the Company’s business activities are with customers located near the Company's branch locations in Illinois, Missouri, Texas, and Wisconsin. At June 30, 2025, the Company’s loan portfolio included $687.8 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $584.5 million was concentrated in corn and other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $57.2 million from $630.6 million at December 31, 2024 due to an increase in the Company's direct merchant financing portfolio through the utilization of additional vendors. Loans concentrated in corn and other grain farming increased $76.9 million from $507.6 million at December 31, 2024. The Company's underwriting practices include collateralization of loans. Any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio.

In addition, the Company has $221.5 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific circumstances as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $1.0 billion of loans to lessors of non-residential buildings, and $616.2 million of loans to lessors of residential buildings and dwellings.

The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the board of directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation and all borrowers are below regulatory thresholds. The Company can occasionally have outstanding balances to one borrower up to but not exceeding the regulatory threshold should underwriting guidelines warrant. Most of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments.

Commercial Real Estate Loans. Commercial real estate loans are generally comprised of loans to small business entities to purchase or expand structures in which the business operations are housed, loans to owners of real estate who lease space to non-related commercial entities, loans for construction and land development, loans to hotel and motel operators, and loans to owners of multi-family residential structures, such as apartment buildings. Commercial real estate loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. For the various types of commercial real estate loans, minimum criteria have been established within the Company’s loan policy regarding debt service coverage while maximum limits on loan-to-value and amortization periods have been defined. Maximum loan-to-value ratios range from 65% to 85% depending upon the type of real estate collateral, while the desired minimum debt coverage ratio is 1.20x to 1.35x. Amortization periods for commercial real estate loans are generally limited to twenty to thirty years, depending on the collateral type and loan-to-value. The Company’s commercial real estate portfolio is below the thresholds that would designate a concentration in commercial real estate lending, as established by the federal banking regulators.

Commercial and Industrial Loans. Commercial and industrial loans are primarily comprised of working capital loans used to purchase inventory and fund accounts receivable that are secured by business assets other than real estate. These loans are generally written for one year or less. Also, equipment financing is provided to businesses with these loans generally limited to 80% of the value of the collateral and amortization periods limited to seven years. Commercial loans are often accompanied by a personal guaranty of the principal owners of a business. Like commercial real estate loans, the underlying cash flow of the business is the primary consideration in the underwriting process. The financial condition of commercial borrowers is monitored at least annually with the type of financial information required determined by the size of the relationship. Measures employed by the Company for businesses with higher risk profiles include the use of government- assisted lending programs through the Small Business Administration and U.S. Department of Agriculture.

Agricultural and Agricultural Real Estate Loans. Agricultural loans are generally comprised of seasonal operating lines to grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. Agricultural real estate loans are

primarily comprised of loans for the purchase of farmland. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop. Loan-to-value ratios on loans secured by farmland generally do not exceed 80% and have amortization periods ranging from twenty-five to thirty years depending on the loan-to-value. Federal government-assistance lending programs through the Farm Service Agency are used to mitigate the level of credit risk when deemed appropriate.

Residential Real Estate Loans. Residential real estate loans generally include loans for the purchase or refinance of residential real estate properties consisting of one-to-four units and home equity loans and lines of credit. The Company sells most of its long-term fixed rate residential real estate loans to secondary market investors. The Company also releases the servicing of these loans upon sale. Residential real estate loans are typically underwritten to conform to industry standards including criteria for maximum debt-to-income and loan-to-value ratios as well as minimum credit scores. Loans secured by first liens on residential real estate held in the portfolio typically do not exceed 80% of the value of the collateral and have amortization periods of twenty-five years or less. The Company does not originate subprime mortgage loans.

Consumer Loans. Consumer loans are primarily comprised of loans to individuals for personal and household purposes such as the purchase of an automobile or other living expenses. Minimum underwriting criteria have been established that consider credit score, debt-to-income ratio, employment history, and collateral coverage. Typically, consumer loans are set up on monthly payments with amortization periods based on the type and age of the collateral.

Construction and land development loans. Construction and land development loans are generally comprised of loans of all sizes, across many different industries, and can include properties for commercial businesses or land development or for residential use such as multi-family properties. Commercial and land development loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. Construction and land development loans include unique risks that require enhanced diligence by lending personnel. For these loans, documentation requirements have been established within policy and a specific checklist is followed. Additionally, based on the type of construction loan, the policy is also followed to designate the construction and land development loans as high-volatility commercial real estate if the loan meets the criteria. To ensure consistent construction loan monitoring, loans greater than $2,000,000 must be monitored by the Bank’s construction monitoring staff.

The policy also establishes maximum loan-to-value/amortizations, terms, construction periods, cash investments, pre-sale/lease and other requirements and are specific to the type of property including non-farm, non-residential secured loans as well as multi-family, 1-4 family non-owner occupied, land acquisition/development/vacant lot acquisition, and raw land. Maximum loan-to-value ratios range from 65% to 80% depending upon the type of real estate collateral. Amortization periods for construction and land development loans are generally limited to twenty to thirty years, depending on the collateral type and loan-to-value. The Company’s construction and land development portfolio is below the thresholds that would designate a concentration in construction and land development lending, as established by the federal banking regulators.

Other Loans. Other loans consist primarily of loans to municipalities to support community projects such as infrastructure improvements or equipment purchases. Underwriting guidelines for these loans are consistent with those established for commercial loans with the additional repayment source of the taxing authority of the municipality.

Allowance for Credit Losses

The allowance for credit losses represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating large, individually evaluated loans separately from non-individually evaluated loans.

Individually Evaluated Loans

The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified via the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business

or collateral concerns and the loan or loans identified do not share risk characteristics with other loans. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. For loans greater than $250,000, allowance for credit loss is individually measured each quarter using one of three alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs.

Non-Individually Evaluated Loans

Non-individually evaluated loans comprise the vast majority of the Company’s total loan portfolio and include loans in accrual status and those credits not identified as modified loans. A small portion of these loans are considered “criticized” due to the risk rating assigned reflecting elevated credit risk due to characteristics, such as a strained cash flow position, associated with the individual borrowers. Criticized loans are those assigned risk ratings of Special Mention, Substandard, or Doubtful.

To determine the allowance, the loan portfolio is segmented based on similar risk characteristics. The allowance for credit losses is estimated using a discounted cash flow (DCF) methodology. The DCF projects future cash flows over the life of the loan portfolio. Probability of default (PD) and loss given default (LGD) are key components in calculating expected losses in this model. The PD is forecasted using a regression model that determines the likelihood of default with a forward-looking forecast of unemployment rates. The LGD is the percentage of defaulted loans that is ultimately charged off. The allowance is calculated as the net present value of the expected cash flows less the amortized cost basis of the loans. Adjustments to expected losses are made using qualitative factors relevant to each loan segment including merger and acquisition activity, economic conditions, changes in policies, procedures and underwriting, and concentrations. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

The Company also considers specific current economic events occurring globally, in the U.S. and in its local markets. Events considered include the status of global trade agreements, scheduled increases in minimum wage and changes to the minimum salary threshold for overtime provisions, current and projected unemployment rates, current and projected grain and oil prices and economies of local markets where customers work and operate.

Within each pool, risk elements are evaluated that have specific impacts to the borrowers within the pool. These, along with the general risks and events, and the specific lending policies and procedures by loan type described above, are analyzed to estimate the qualitative factors used to adjust the historical loss rates.

During the current period, the following assumptions and factors were considered when determining the historical loss rate and any potential adjustments by loan pool.

Construction and Land Development Loans. Historical losses in this segment remain very low. While inflationary pressures have caused some risk in this segment, most projects are associated with financially strong borrowers. The qualitative factors for this segment reduced for the quarter due to the segment's outstanding balances compared to management's updated policy concentration thresholds.

Agricultural Real Estate Loans. Historical losses in the segment remain very low. Farmland values have increased over an extended period of time and remained stable over the last year. There was no change to the qualitative factor for this segment.

Residential Real Estate Non-Owner Occupied Loans. The loan segment has remained stable throughout the last several years. Both adversely classified and past dues have been consistent. The qualitative factors for this segment did not materially change for the period.

Residential Real Estate Owner Occupied Loans. At the end of the period, there were a lower percentage of past due loans. The qualitative factors for this segment did not materially change for the period.

HELOC Loans. These loans are a small segment to overall loan balances. In the period, there were no changes to the qualitative factors for this segment.

Commercial Real Estate Owner Occupied Loans. This segment has remained stable, despite macro segment concerns over commercial real estate. The Company has previously increased qualitative factors for those conditions and there were no changes to the qualitative factors for this segment the quarter.

Commercial Real Estate Non-Owner Occupied Loans. This segment includes the Company's largest balances. Qualitative factors for this segment increased for the quarter due to an increase in past due loans for the segment.

Agricultural Loans. Losses in this segment are very low. Commodity prices have remained depressed for an extended period but yields have experienced increases from previous concerns from the weather. The qualitative factors of this segment were reduced in the quarter due to a reduction in past due loans for the segment.

Commercial and Industrial Loans. The qualitative factors for this segment were increased over time due to the repricing of higher rates. Given time has passed, and the outlook is for stable to declining rates, this issue has subsided. Considering this, the qualitative factor was reduced in the period.

Consumer Loans. This segment is a small portion of the Company's loan portfolio. This segment will likely be impacted in the event of a recession that may occur. There were no changes to the qualitative factors for this segment during the quarter.

The following table presents the activity in the allowance for credit losses based on portfolio segment for the three and six months ended June 30, 2025 (in thousands):


	Construction and Land Development		Agricultural Real Estate			1-4 Family Residential Properties			Commercial Real Estate			Agricultural Loans			Commercial and Industrial			Consumer Loans			Total
Three months ended June 30, 2025
Beginning balance	$	3,731	$	1,292		$	3,544		$	32,214		$	1,649		$	26,028		$	1,593		$	70,051
Provision (release) for credit loss expense		335		30			(7	)		1,111			1,287			(203	)		14			2,567
Loans charged off		—		—			(55	)		(70	)		(1,386	)		(489	)		(261	)		(2,261	)
Recoveries collected		—		—			134			3			217			282			167			803
Ending balance	$	4,066	$	1,322		$	3,616		$	33,258		$	1,767		$	25,618		$	1,513		$	71,160

Six months ended June 30, 2025
Beginning balance	$	3,275	$	1,361		$	3,579		$	32,669		$	1,957		$	25,602		$	1,739		$	70,182
Provision (release) for credit loss expense		791		(39	)		(21	)		986			2,096			356			50			4,219
Loans charged off		—		—			(94	)		(408	)		(2,503	)		(712	)		(627	)		(4,344	)
Recoveries collected		—		—			152			11			217			372			351			1,103
Ending balance	$	4,066	$	1,322		$	3,616		$	33,258		$	1,767		$	25,618		$	1,513		$	71,160

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and six months ended June 30, 2024 and for the year ended December 31, 2024 (in thousands):


	Construction and Land Development			Agricultural Real Estate			1-4 Family Residential Properties			Commercial Real Estate			Agricultural Loans			Commercial and Industrial			Consumer Loans			Total
Three months ended June 30, 2024
Beginning balance	$	2,701		$	1,358		$	3,778		$	32,537		$	778		$	24,631		$	2,153		$	67,936
Provision for credit loss expense		(55	)		14			(264	)		376			316			624			72			1,083
Loans charged off		—			—			(34	)		—			(209	)		(368	)		(374	)		(985	)
Recoveries collected		—			—			100			5			—			44			129			278
Ending balance	$	2,646		$	1,372		$	3,580		$	32,918		$	885		$	24,931		$	1,980		$	68,312

Six months ended June 30, 2024
Beginning balance	$	2,918		$	1,366		$	4,220		$	31,758		$	705		$	25,450		$	2,258		$	68,675
Provision (release) for credit loss expense		(272	)		6			(688	)		994			441			15			230			726
Loans charged off		—			—			(101	)		—			(261	)		(642	)		(800	)		(1,804	)
Recoveries collected		—			—			149			166			—			108			292			715
Ending balance	$	2,646		$	1,372		$	3,580		$	32,918		$	885		$	24,931		$	1,980		$	68,312

Twelve months ended December 31, 2024
Beginning Balance	$	2,918		$	1,366		$	4,220		$	31,758		$	705		$	25,450		$	2,258		$	68,675
Provision (release) for credit loss expense		352			(5	)		(785	)		1,178			3,587			510			798			5,635
Loans charged off		—			—			(195	)		(451	)		(2,410	)		(688	)		(2,004	)		(5,748	)
Recoveries collected		5			—			339			184			75			330			687			1,620
Ending balance	$	3,275		$	1,361		$	3,579		$	32,669		$	1,957		$	25,602		$	1,739		$	70,182

Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For individually evaluated loans that are considered solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to time frames established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.

Credit Quality

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, collateral support, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Company uses the following definitions for risk ratings which are commensurate with a loan considered “criticized”:

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 credit worthiness 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, based on currently existing factors, 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 pass rated loans.

The following tables present the credit risk profile of the Company’s loan portfolio on amortized cost basis based on risk rating category and year of origination as of June 30, 2025 (in thousands):


	Term Loans by Origination Year												Revolving
Risk rating	2025		2024		2023		2022		2021		Prior		Loans		Total
June 30, 2025
Construction and land development loans
Pass	$	37,106	$	105,536	$	108,091	$	13,793	$	14,984	$	18,923	$	—	$	298,433
Special mention		—		—		—		—		—		366		—		366
Substandard		—		—		—		5		—		8		—		13
Total	$	37,106	$	105,536	$	108,091	$	13,798	$	14,984	$	19,297	$	—	$	298,812
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	23,371	$	24,379	$	13,483	$	134,983	$	62,151	$	110,630	$	—	$	368,997
Special mention		148		200		1,367		800		979		7,319		—		10,813
Substandard		—		—		—		574		—		1,133		—		1,707
Total	$	23,519	$	24,579	$	14,850	$	136,357	$	63,130	$	119,082	$	—	$	381,517
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	34,999	$	36,049	$	33,422	$	67,870	$	71,720	$	155,394	$	83,993	$	483,447
Special mention		214		174		—		271		312		709		—		1,680
Substandard		113		299		651		954		765		7,056		822		10,660
Total	$	35,326	$	36,522	$	34,073	$	69,095	$	72,797	$	163,159	$	84,815	$	495,787
Current period gross write-offs	$	—	$	—	$	9	$	—	$	—	$	85	$	—	$	94
Commercial real estate loans
Pass	$	160,943	$	215,564	$	198,315	$	636,078	$	509,632	$	980,943	$	—	$	2,701,475
Special mention		—		2,973		13,640		12,635		298		9,683		—		39,229
Substandard		—		1,473		48		4,902		2,507		4,610		—		13,540
Total	$	160,943	$	220,010	$	212,003	$	653,615	$	512,437	$	995,236	$	—	$	2,754,244
Current period gross write-offs	$	—	$	—	$	—	$	338	$	—	$	70	$	—	$	408
Agricultural loans
Pass	$	158,666	$	86,034	$	16,268	$	20,614	$	13,784	$	3,655	$	—	$	299,021
Special mention		1,113		1,265		2,459		927		122		—		—		5,886
Substandard		410		185		859		13		—		—		—		1,467
Total	$	160,189	$	87,484	$	19,586	$	21,554	$	13,906	$	3,655	$	—	$	306,374
Current period gross write-offs	$	—	$	280	$	1,081	$	836	$	306	$	—	$	—	$	2,503
Commercial and industrial loans
Pass	$	252,605	$	256,036	$	106,096	$	231,321	$	172,600	$	434,968	$	—	$	1,453,626
Special mention		10		6,238		9,731		1,571		4,132		2,108		—		23,790
Substandard		—		248		2,288		1,079		246		7,384		—		11,245
Total	$	252,615	$	262,522	$	118,115	$	233,971	$	176,978	$	444,460	$	—	$	1,488,661
Current period gross write-offs	$	—	$	—	$	14	$	53	$	—	$	645	$	—	$	712
Consumer loans
Pass	$	3,290	$	3,530	$	3,750	$	18,118	$	8,361	$	4,105	$	—	$	41,154
Special mention		—		—		—		51		—		—		—		51
Substandard		—		41		21		127		145		65		—		399
Total	$	3,290	$	3,571	$	3,771	$	18,296	$	8,506	$	4,170	$	—	$	41,604
Current period gross write-offs	$	—	$	8	$	23	$	83	$	42	$	471	$	—	$	627
Total loans
Pass	$	670,980	$	727,128	$	479,425	$	1,122,777	$	853,232	$	1,708,618	$	83,993	$	5,646,153
Special mention		1,485		10,850		27,197		16,255		5,843		20,185		—		81,815
Substandard		523		2,246		3,867		7,654		3,663		20,256		822		39,031
Total	$	672,988	$	740,224	$	510,489	$	1,146,686	$	862,738	$	1,749,059	$	84,815	$	5,766,999
Current period gross write-offs	$	—	$	288	$	1,127	$	1,310	$	348	$	1,271	$	—	$	4,344

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2024 (in thousands):


	Term Loans by Origination Year												Revolving
Risk rating	2024		2023		2022		2021		2020		Prior		Loans		Total
December 31, 2024
Construction and land development loans
Pass	$	82,696	$	101,715	$	14,390	$	15,817	$	4,735	$	16,342	$	—	$	235,695
Special mention		—		—		—		—		—		382		—		382
Substandard		—		—		6		—		—		10		—		16
Total	$	82,696	$	101,715	$	14,396	$	15,817	$	4,735	$	16,734	$	—	$	236,093
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural real estate loans
Pass	$	25,824	$	17,292	$	159,433	$	55,083	$	48,700	$	73,592	$	—	$	379,924
Special mention		—		192		107		986		1,755		5,630		—		8,670
Substandard		—		141		966		—		—		1,059		—		2,166
Total	$	25,824	$	17,625	$	160,506	$	56,069	$	50,455	$	80,281	$	—	$	390,760
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential property loans
Pass	$	46,350	$	36,454	$	74,580	$	75,325	$	61,936	$	110,348	$	79,714	$	484,707
Special mention		175		—		204		326		—		577		59		1,341
Substandard		174		672		916		737		557		6,875		618		10,549
Total	$	46,699	$	37,126	$	75,700	$	76,388	$	62,493	$	117,800	$	80,391	$	496,597
Current period gross write-offs	$	—	$	46	$	13	$	33	$	—	$	103	$	—	$	195
Commercial real estate loans
Pass	$	216,297	$	213,704	$	680,665	$	535,056	$	289,855	$	774,516	$	—	$	2,710,093
Special mention		659		13,732		4,090		2,053		713		10,462		—		31,709
Substandard		—		49		3,844		467		—		4,067		—		8,427
Total	$	216,956	$	227,485	$	688,599	$	537,576	$	290,568	$	789,045	$	—	$	2,750,229
Current period gross write-offs	$	—	$	—	$	151	$	—	$	—	$	300	$	—	$	451
Agricultural loans
Pass	$	175,402	$	24,024	$	13,147	$	9,162	$	1,585	$	2,306	$	—	$	225,626
Special mention		617		2,208		976		100		—		—		—		3,901
Substandard		843		7,092		2,209		—		—		—		—		10,144
Total	$	176,862	$	33,324	$	16,332	$	9,262	$	1,585	$	2,306	$	—	$	239,671
Current period gross write-offs	$	—	$	2,213	$	100	$	52	$	—	$	45	$	—	$	2,410
Commercial and industrial loans
Pass	$	307,785	$	228,411	$	278,845	$	183,042	$	131,005	$	360,610	$	—	$	1,489,698
Special mention		54		1,149		1,277		748		1,020		7,583		—		11,831
Substandard		65		1,410		789		446		98		815		—		3,623
Total	$	307,904	$	230,970	$	280,911	$	184,236	$	132,123	$	369,008	$	—	$	1,505,152
Current period gross write-offs	$	10	$	47	$	207	$	378	$	10	$	36	$	—	$	688
Consumer loans
Pass	$	5,098	$	5,138	$	24,430	$	11,810	$	4,494	$	2,385	$	—	$	53,355
Special mention		—		—		14		—		—		—		—		14
Substandard		12		21		259		216		54		29		—		591
Total	$	5,110	$	5,159	$	24,703	$	12,026	$	4,548	$	2,414	$	—	$	53,960
Current period gross write-offs	$	98	$	63	$	154	$	139	$	59	$	1,491	$	—	$	2,004
Total loans
Pass	$	859,452	$	626,738	$	1,245,490	$	885,295	$	542,310	$	1,340,099	$	79,714	$	5,579,098
Special mention		1,505		17,281		6,668		4,213		3,488		24,634		59		57,848
Substandard		1,094		9,385		8,989		1,866		709		12,855		618		35,516
Total	$	862,051	$	653,404	$	1,261,147	$	891,374	$	546,507	$	1,377,588	$	80,391	$	5,672,462
Current period gross write-offs	$	108	$	2,369	$	625	$	602	$	69	$	1,975	$	—	$	5,748

The following table presents the Company’s loan portfolio aging analysis at June 30, 2025 and December 31, 2024 (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due			Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
June 30, 2025
Construction and land development	$	89	$	—	$	—	$	89		$	298,723	$	298,812	$	—
Agricultural real estate		—		574		841		1,415			380,102		381,517		—
1-4 family residential properties		362		1,511		2,149		4,022			491,765		495,787		—
Multifamily residential properties		—		—		—		—			360,604		360,604		—
Commercial real estate		14,185		3,796		2,755		20,736			2,372,904		2,393,640		—
Loans secured by real estate		14,636		5,881		5,745		26,262			3,904,098		3,930,360		—
Agricultural loans		—		262		2,557		2,819			303,555		306,374		—
Commercial and industrial loans		369		177		847		1,393			1,323,260		1,324,653		—
Consumer loans		150		32		31		213			41,391		41,604		—
All other loans		—		2,194		—		2,194			161,814		164,008		—
Total loans	$	15,155	$	8,546	$	9,180	$	32,881		$	5,734,118	$	5,766,999	$	—
Percent of total loans								0.57	%
December 31, 2024
Construction and land development	$	6	$	—	$	—	$	6		$	236,087	$	236,093	$	—
Agricultural real estate		—		—		533		533			390,227		390,760		—
1-4 family residential properties		2,209		931		2,089		5,229			491,368		496,597		—
Multifamily residential properties		—		—		472		472			332,172		332,644		—
Commercial real estate		595		553		344		1,492			2,416,093		2,417,585		—
Loans secured by real estate		2,810		1,484		3,438		7,732			3,865,947		3,873,679		—
Agricultural loans		550		—		1,289		1,839			237,832		239,671		—
Commercial and industrial loans		337		89		463		889			1,335,031		1,335,920		—
Consumer loans		442		48		111		601			53,359		53,960		—
All other loans		—		—		—		—			169,232		169,232		—
Total loans	$	4,139	$	1,621	$	5,301	$	11,061		$	5,661,401	$	5,672,462	$	—
Percent of total loans								0.19	%

Individually Evaluated Loans

Within all loan portfolio segments, loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Impaired loans, excluding certain modified, are placed on nonaccrual status. Impaired loans include nonaccrual loans and loans modified in restructuring where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status until, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. If the restructured loan is on accrual status prior to being modified, the loan is reviewed to determine if the modified loan should remain on accrual status.

The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is ninety days past due. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be modified is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.

The amount of interest income recognized by the Company within the periods stated above was due to loans modified in

Non-Accrual Loans

Interest income that would have been recorded under the original terms of such nonaccrual loans totaled $662,000 and $487,000 for the six months ended June 30, 2025 and 2024, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost of loans at June 30, 2025 and 2024 that were both experiencing financial difficulty and modified segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to outstanding loans is also presented below.


							Total
	Payment		Term		Interest		Class of
	Delay		Extension		Rate		Financing
	Investment		Modifications		Reduction		Receivable
June 30, 2025
Agricultural real estate	$	296	$	—	$	—		0.01	%
1-4 family residential properties		40		736		—		0.01	%
Commercial real estate		792		130		505		0.02	%
Loans secured by real estate		1,128		866		505		0.04	%
Commercial and industrial loans		831		81		—		0.02	%
Consumer loans		—		6		—		—	%
Total	$	1,959	$	953	$	505		0.06	%
June 30, 2024
Agricultural real estate	$	317	$	—	$	—		0.01	%
1-4 family residential properties		49		778		—		0.01	%
Commercial real estate		694		216		502		0.03	%
Loans secured by real estate		1,060		994		502		0.05	%
Commercial and industrial loans		168		126		—		0.01	%
Consumer loans		5		12		—		—	%
Total	$	1,233	$	1,132	$	502		0.05	%

The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans that have been modified in the last twelve months ended June 30, 2025 and 2024.

A loan is considered to be in payment default once it is 90 days past due under the modified terms. There were no loans modified during the prior twelve months that experienced payment defaults for the three months ended June 30, 2025 and 2024, respectively.

Note 4 – Loans and Allowance for Credit Losses

Allowance for Credit Losses

Individually Evaluated Loans

Non-Individually Evaluated Loans

Credit Quality

Individually Evaluated Loans

Non-Accrual Loans

Loan Modifications to Borrowers Experiencing Financial Difficulty