LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2024

Major categories of loans are summarized as follows:


(dollars in thousands)	December 31, 2024		December 31, 2023

Commercial and industrial	$	428,389	$	427,800
Commercial real estate - owner occupied	322,316		295,842
Commercial real estate - non-owner occupied	899,565		880,681
Construction and land development	374,657		363,983
Multi-family	431,524		417,923
One-to-four family residential	463,968		491,508
Agricultural and farmland	293,375		287,294
Municipal, consumer, and other	252,352		239,386
Loans, before allowance for credit losses	3,466,146		3,404,417
Allowance for credit losses	(42,044)		(40,048)
Loans, net of allowance for credit losses	$	3,424,102	$	3,364,369

Allowance for Credit Losses

Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.

At December 31, 2024, the economic forecast used by management anticipates a mild economic slowdown, but not a recession, over the next 4 quarters considered in the forecast period, with the unemployment rate remaining stable and GDP growth slowing slightly and then increasing. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses.

The following tables detail activity in the allowance for credit losses:












































(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Balance, December 31, 2021	$	2,440	$	1,840	$	8,145	$	4,914	$	1,263	$	1,311	$	845	$	3,178	$	23,936
Provision for loan losses	88		(1,653)		(1,707)		(692)		209		146		(49)		2,952		(706)
Charge-offs	(23)		(25)		—		—		—		(67)		—		(569)		(684)
Recoveries	774		1,031		283		1		—		369		—		329		2,787
Balance, December 31, 2022	3,279		1,193		6,721		4,223		1,472		1,759		796		5,890		25,333
Adoption of ASC 326	(822)		587		501		1,969		85		797		1,567		2,299		6,983
PCD allowance established in acquisition	69		127		239		240		68		492		5		7		1,247
Provision for credit losses	2,823		352		187		(487)		1,931		2,004		(1,399)		1,254		6,665
Charge-offs	(428)		(5)		(202)		—		—		(34)		—		(690)		(1,359)
Recoveries	59		18		268		53		281		186		6		308		1,179
Balance, December 31, 2023	4,980		2,272		7,714		5,998		3,837		5,204		975		9,068		40,048

Provision for credit losses	1,677		825		3,407		(1,699)		682		(1,438)		246		54		3,754
Charge-offs	(1,448)		(6)		—		—		(188)		(298)		(62)		(1,282)		(3,284)
Recoveries	148		16		586		3		—		440		11		322		1,526
Balance, December 31, 2024	$	5,357	$	3,107	$	11,707	$	4,302	$	4,331	$	3,908	$	1,170	$	8,162	$	42,044

Gross charge-offs, further sorted by origination year, were as follows during the year ended December 31, 2024 and 2023.


	Gross Charge-Offs for the Year Ended December 31, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior

Commercial and industrial	$	—	$	1,264	$	75	$	—	$	—	$	11	$	98	$	—	$	1,448
Commercial real estate - owner occupied	6		—		—		—		—		—		—		—		6
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		188		—		—		—		—		188
One-to-four family residential	—		1		8		15		4		182		88		—		298
Agricultural and farmland	—		—		44		—		—		—		18		—		62
Municipal, consumer, and other	415		63		11		—		—		529		264		—		1,282
Total	$	421	$	1,328	$	138	$	203	$	4	$	722	$	468	$	—	$	3,284

	Gross Charge-Offs for the Year Ended December 31, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior

Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	428	$	—	$	428
Commercial real estate - owner occupied	—		5		—		—		—		—		—		—		5
Commercial real estate - non-owner occupied	—		—		—		—		31		—		171		—		202
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		1		33		—		—		34
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	309		100		13		17		10		32		209		—		690
Total	$	309	$	105	$	13	$	17	$	42	$	65	$	808	$	—	$	1,359

The following tables present loans and the related allowance for credit losses by category:


	December 31, 2024
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	427,737	$	322,159	$	884,832	$	374,408	$	431,432	$	459,790	$	293,240	$	241,765	$	3,435,363
Individually evaluated for impairment	652		157		14,733		249		92		4,178		135		10,587		30,783
Total	$	428,389	$	322,316	$	899,565	$	374,657	$	431,524	$	463,968	$	293,375	$	252,352	$	3,466,146

Allowance for credit losses:
Collectively evaluated for impairment	$	5,344	$	3,107	$	11,201	$	4,269	$	4,239	$	3,747	$	1,170	$	5,901	$	38,978
Individually evaluated for impairment	13		—		506		33		92		161		—		2,261		3,066
Total	$	5,357	$	3,107	$	11,707	$	4,302	$	4,331	$	3,908	$	1,170	$	8,162	$	42,044

	December 31, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	427,528	$	295,672	$	865,394	$	363,767	$	417,608	$	486,049	$	287,150	$	224,345	$	3,367,513
Individually evaluated for impairment	272		170		15,287		216		315		5,459		144		15,041		36,904
Total	$	427,800	$	295,842	$	880,681	$	363,983	$	417,923	$	491,508	$	287,294	$	239,386	$	3,404,417

Allowance for credit losses:
Collectively evaluated for impairment	$	4,960	$	2,272	$	6,693	$	5,998	$	3,837	$	4,957	$	975	$	6,137	$	35,829
Individually evaluated for impairment	20		—		1,021		—		—		247		—		2,931		4,219
Total	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:


	December 31, 2024
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	627	$	25	$	652	$	13
Commercial real estate - owner occupied	157		—		—		157		—
Commercial real estate - non-owner occupied	14,733		—		—		14,733		506
Construction and land development	249		—		—		249		33
Multi-family	92		—		—		92		92
One-to-four family residential	4,178		—		—		4,178		161
Agricultural and farmland	—		—		135		135		—
Municipal, consumer, and other	10,569		5		13		10,587		2,261
Total	$	29,978	$	632	$	173	$	30,783	$	3,066

	December 31, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	37	$	235	$	272	$	20
Commercial real estate - owner occupied	170		—		—		170		—
Commercial real estate - non-owner occupied	15,287		—		—		15,287		1,021
Construction and land development	216		—		—		216		—
Multi-family	315		—		—		315		—
One-to-four family residential	5,459		—		—		5,459		247
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,978		39		24		15,041		2,931
Total	$	36,569	$	76	$	259	$	36,904	$	4,219

Accrued interest on loans is excluded from the estimate of credit losses and totaled $19.6 million and $18.4 million as of December 31, 2024 and 2023, respectively.

Past Due and Nonaccrual Status

Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.

The following tables present loans by category based on current payment and accrual status:


	December 31, 2024
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	425,859	$	1,878	$	—	$	652	$	428,389
Commercial real estate - owner occupied	321,805		354		—		157		322,316
Commercial real estate - non-owner occupied	897,445		299		—		1,821		899,565
Construction and land development	373,933		475		—		249		374,657
Multi-family	431,432		—		—		92		431,524
One-to-four family residential	459,069		721		—		4,178		463,968
Agricultural and farmland	293,231		9		—		135		293,375
Municipal, consumer, and other	251,798		182		4		368		252,352
Total	$	3,454,572	$	3,918	$	4	$	7,652	$	3,466,146


	December 31, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	427,300	$	228	$	—	$	272	$	427,800
Commercial real estate - owner occupied	295,672		—		—		170		295,842
Commercial real estate - non-owner occupied	878,591		255		—		1,835		880,681
Construction and land development	363,735		32		—		216		363,983
Multi-family	417,597		11		—		315		417,923
One-to-four family residential	484,969		1,735		—		4,804		491,508
Agricultural and farmland	286,820		330		—		144		287,294
Municipal, consumer, and other	239,033		252		37		64		239,386
Total	$	3,393,717	$	2,843	$	37	$	7,820	$	3,404,417

The following tables present nonaccrual loans with and without a related allowance for credit losses:


	December 31, 2024
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	185	$	467	$	652
Commercial real estate - owner occupied	—		157		157
Commercial real estate - non-owner occupied	—		1,821		1,821
Construction and land development	216		33		249
Multi-family	92		—		92
One-to-four family residential	654		3,524		4,178
Agricultural and farmland	—		135		135
Municipal, consumer, and other	—		368		368
Total	$	1,147	$	6,505	$	7,652

	December 31, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	120	$	152	$	272
Commercial real estate - owner occupied	—		170		170
Commercial real estate - non-owner occupied	188		1,647		1,835
Construction and land development	216		—		216
Multi-family	—		315		315
One-to-four family residential	14		4,790		4,804
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		64		64
Total	$	538	$	7,282	$	7,820

Credit Quality Indicators

In June 2024, the Company updated its risk rating categories to add a special mention category to provide another level of granularity in distinguishing risk levels of loans. As of June 30, 2024, $19.5 million of the special mention loans would have been considered pass-watch and $10.6 million would have been considered substandard under the previous risk rating categories.

The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all loans that are part of relationships with over $750 thousand in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. Risk ratings are reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into the following major categories:

Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant a special mention, substandard, or doubtful classification.

Special Mention – a special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the assets or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.

Doubtful – a doubtful loan has all the weaknesses inherent in one 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. There were no loans classified as doubtful as of December 31, 2024 and December 31, 2023.

The following tables present loans by category based on their assigned risk ratings determined by management:


	December 31, 2024
(dollars in thousands)	Pass		Pass-Watch		Special Mention		Substandard		Total

Commercial and industrial	$	404,779	$	16,429	$	1,957	$	5,224	$	428,389
Commercial real estate - owner occupied	297,150		14,969		2,713		7,484		322,316
Commercial real estate - non-owner occupied	843,487		21,594		—		34,484		899,565
Construction and land development	351,657		1,376		20,847		777		374,657
Multi-family	411,842		3,855		15,735		92		431,524
One-to-four family residential	448,869		6,641		710		7,748		463,968
Agricultural and farmland	269,926		18,154		521		4,774		293,375
Municipal, consumer, and other	236,686		929		4,107		10,630		252,352
Total	$	3,264,396	$	83,947	$	46,590	$	71,213	$	3,466,146


	December 31, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Total

Commercial and industrial	$	419,494	$	7,128	$	1,178	$	427,800
Commercial real estate - owner occupied	275,649		14,072		6,121		295,842
Commercial real estate - non-owner occupied	822,012		33,283		25,386		880,681
Construction and land development	351,087		12,604		292		363,983
Multi-family	397,951		19,656		316		417,923
One-to-four family residential	472,355		6,671		12,482		491,508
Agricultural and farmland	280,867		3,071		3,356		287,294
Municipal, consumer, and other	222,474		1,721		15,191		239,386
Total	$	3,241,889	$	98,206	$	64,322	$	3,404,417

Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2024:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	46,635	$	43,007	$	44,701	$	11,617	$	17,913	$	41,397	$	197,516	$	1,993	$	404,779
Pass-Watch	475		1,310		186		1,121		—		1,775		10,613		949		16,429
Special Mention	—		281		272		173		—		—		1,231		—		1,957
Substandard	—		1,913		1,016		721		—		—		939		635		5,224
Total	$	47,110	$	46,511	$	46,175	$	13,632	$	17,913	$	43,172	$	210,299	$	3,577	$	428,389

Commercial real estate - owner occupied
Pass	$	63,546	$	23,607	$	56,509	$	48,867	$	39,679	$	44,108	$	19,766	$	1,068	$	297,150
Pass-Watch	6,478		395		3,698		2,111		542		1,374		371		—		14,969
Special Mention	1,877		—		—		150		—		—		686		—		2,713
Substandard	819		700		506		3,707		1,241		511		—		—		7,484
Total	$	72,720	$	24,702	$	60,713	$	54,835	$	41,462	$	45,993	$	20,823	$	1,068	$	322,316

Commercial real estate - non-owner occupied
Pass	$	92,125	$	108,688	$	245,168	$	222,479	$	84,054	$	65,935	$	23,425	$	1,613	$	843,487
Pass-Watch	3,173		421		6,656		4,031		2,442		4,871		—		—		21,594
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	23,245		9,191		—		—		—		2,048		—		—		34,484
Total	$	118,543	$	118,300	$	251,824	$	226,510	$	86,496	$	72,854	$	23,425	$	1,613	$	899,565

Construction and land development
Pass	$	181,274	$	73,773	$	65,045	$	21,542	$	590	$	693	$	8,228	$	512	$	351,657
Pass-Watch	—		—		—		—		—		18		697		661		1,376
Special Mention	—		—		8,750		12,097		—		—		—		—		20,847
Substandard	475		—		216		—		—		86		—		—		777
Total	$	181,749	$	73,773	$	74,011	$	33,639	$	590	$	797	$	8,925	$	1,173	$	374,657

Multi-family
Pass	$	46,969	$	80,450	$	88,823	$	101,284	$	50,652	$	40,839	$	2,375	$	450	$	411,842
Pass-Watch	2,791		—		567		—		—		492		—		5		3,855
Special Mention	6,936		—		—		—		8,799		—		—		—		15,735
Substandard	92		—		—		—		—		—		—		—		92
Total	$	56,788	$	80,450	$	89,390	$	101,284	$	59,451	$	41,331	$	2,375	$	455	$	431,524

One-to-four family residential
Pass	$	44,914	$	87,184	$	79,834	$	71,466	$	57,258	$	43,455	$	59,446	$	5,312	$	448,869
Pass-Watch	1,126		1,271		936		242		405		2,252		134		275		6,641
Special Mention	—		—		—		592		118		—		—		—		710
Substandard	281		522		861		473		382		4,824		16		389		7,748
Total	$	46,321	$	88,977	$	81,631	$	72,773	$	58,163	$	50,531	$	59,596	$	5,976	$	463,968

Agricultural and farmland
Pass	$	42,272	$	35,593	$	32,146	$	28,714	$	27,865	$	7,656	$	94,977	$	703	$	269,926
Pass-Watch	100		2,671		1,424		1,403		508		861		10,633		554		18,154
Special Mention	134		87		—		—		—		—		300		—		521
Substandard	332		51		494		9		3,183		—		319		386		4,774
Total	$	42,838	$	38,402	$	34,064	$	30,126	$	31,556	$	8,517	$	106,229	$	1,643	$	293,375


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Municipal, consumer, and other
Pass	$	77,779	$	37,678	$	14,475	$	23,204	$	12,479	$	37,460	$	33,611	$	—	$	236,686
Pass-Watch	103		50		6		12		—		757		1		—		929
Special Mention	—		—		—		—		—		4,107		—		—		4,107
Substandard	21		5		33		—		—		10,570		1		—		10,630
Total	$	77,903	$	37,733	$	14,514	$	23,216	$	12,479	$	52,894	$	33,613	$	—	$	252,352

Total by risk rating
Pass	$	595,514	$	489,980	$	626,701	$	529,173	$	290,490	$	281,543	$	439,344	$	11,651	$	3,264,396
Pass-Watch	14,246		6,118		13,473		8,920		3,897		12,400		22,449		2,444		83,947
Special Mention	8,947		368		9,022		13,012		8,917		4,107		2,217		—		46,590
Substandard	25,265		12,382		3,126		4,910		4,806		18,039		1,275		1,410		71,213
Total	$	643,972	$	508,848	$	652,322	$	556,015	$	308,110	$	316,089	$	465,285	$	15,505	$	3,466,146

Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2023:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2023		2022		2021		2020		2019		Prior
Commercial and industrial
Pass	$	90,931	$	58,364	$	19,283	$	26,816	$	5,269	$	29,550	$	187,579	$	1,702	$	419,494
Pass-Watch	2,025		1,340		892		144		753		471		956		547		7,128
Substandard	111		73		327		60		—		—		323		284		1,178
Total	$	93,067	$	59,777	$	20,502	$	27,020	$	6,022	$	30,021	$	188,858	$	2,533	$	427,800

Commercial real estate - owner occupied
Pass	$	27,516	$	64,229	$	55,376	$	53,634	$	32,469	$	28,876	$	13,549	$	—	$	275,649
Pass-Watch	4,061		943		5,210		1,474		1,573		811		—		—		14,072
Substandard	2,734		86		1,550		64		164		1,523		—		—		6,121
Total	$	34,311	$	65,258	$	62,136	$	55,172	$	34,206	$	31,210	$	13,549	$	—	$	295,842

Commercial real estate - non-owner occupied
Pass	$	121,536	$	240,323	$	237,953	$	88,894	$	82,094	$	39,228	$	10,274	$	1,710	$	822,012
Pass-Watch	810		6,893		7,013		353		4,230		154		13,585		245		33,283
Substandard	13,376		124		286		—		2,410		9,190		—		—		25,386
Total	$	135,722	$	247,340	$	245,252	$	89,247	$	88,734	$	48,572	$	23,859	$	1,955	$	880,681

Construction and land development
Pass	$	153,499	$	119,005	$	56,954	$	5,596	$	2,662	$	796	$	12,050	$	525	$	351,087
Pass-Watch	153		10,750		—		—		—		—		163		1,538		12,604
Substandard	—		216		—		—		—		76		—		—		292
Total	$	153,652	$	129,971	$	56,954	$	5,596	$	2,662	$	872	$	12,213	$	2,063	$	363,983

Multi-family
Pass	$	83,898	$	81,507	$	115,402	$	53,126	$	34,053	$	23,570	$	5,904	$	491	$	397,951
Pass-Watch	3,111		7,197		—		8,821		51		468		—		8		19,656
Substandard	—		—		316		—		—		—		—		—		316
Total	$	87,009	$	88,704	$	115,718	$	61,947	$	34,104	$	24,038	$	5,904	$	499	$	417,923

One-to-four family residential
Pass	$	105,337	$	91,636	$	82,289	$	64,094	$	21,986	$	44,241	$	57,248	$	5,524	$	472,355
Pass-Watch	2,382		286		940		486		212		1,804		203		358		6,671
Substandard	1,507		1,527		623		646		1,037		4,166		64		2,912		12,482
Total	$	109,226	$	93,449	$	83,852	$	65,226	$	23,235	$	50,211	$	57,515	$	8,794	$	491,508

Agricultural and farmland
Pass	$	52,766	$	37,600	$	36,604	$	33,960	$	8,910	$	7,756	$	100,486	$	2,785	$	280,867
Pass-Watch	953		361		425		30		71		719		172		340		3,071
Substandard	—		—		13		3,199		—		144		—		—		3,356
Total	$	53,719	$	37,961	$	37,042	$	37,189	$	8,981	$	8,619	$	100,658	$	3,125	$	287,294

Municipal, consumer, and other
Pass	$	43,575	$	57,404	$	27,904	$	14,342	$	1,016	$	42,499	$	35,734	$	—	$	222,474
Pass-Watch	9		6		13		—		—		1,693		—		—		1,721
Substandard	51		103		2		6		8		15,012		8		1		15,191
Total	$	43,635	$	57,513	$	27,919	$	14,348	$	1,024	$	59,204	$	35,742	$	1	$	239,386

Total by risk rating
Pass	$	679,058	$	750,068	$	631,765	$	340,462	$	188,459	$	216,516	$	422,824	$	12,737	$	3,241,889
Pass-Watch	13,504		27,776		14,493		11,308		6,890		6,120		15,079		3,036		98,206
Substandard	17,779		2,129		3,117		3,975		3,619		30,111		395		3,197		64,322
Total	$	710,341	$	779,973	$	649,375	$	355,745	$	198,968	$	252,747	$	438,298	$	18,970	$	3,404,417

Modifications

The Company modified one commercial and industrial loan to a borrower experiencing financial difficulty during the year ended December 31, 2024. The modification included an interest rate reduction and a term extension. As of December 31, 2024, the book balance of the modified loan was $0.5 million, and the loan was current and performing in accordance with the modified terms. There were no loan modifications to borrowers experiencing financial difficulty during the year ended December 31, 2023.