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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables)
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Summary of loans
Major categories of loans are summarized as follows:
(dollars in thousands)December 31, 2024December 31, 2023
Commercial and industrial$428,389 $427,800 
Commercial real estate - owner occupied322,316 295,842 
Commercial real estate - non-owner occupied899,565 880,681 
Construction and land development374,657 363,983 
Multi-family431,524 417,923 
One-to-four family residential463,968 491,508 
Agricultural and farmland293,375 287,294 
Municipal, consumer, and other252,352 239,386 
Loans, before allowance for credit losses3,466,146 3,404,417 
Allowance for credit losses(42,044)(40,048)
Loans, net of allowance for credit losses$3,424,102 $3,364,369 
Schedule of activity in allowance for loan 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-FamilyOne-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 losses88 (1,653)(1,707)(692)209 146 (49)2,952 (706)
Charge-offs(23)(25)— — — (67)— (569)(684)
Recoveries774 1,031 283 — 369 — 329 2,787 
Balance, December 31, 20223,279 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 acquisition69 127 239 240 68 492 1,247 
Provision for credit losses2,823 352 187 (487)1,931 2,004 (1,399)1,254 6,665 
Charge-offs(428)(5)(202)— — (34)— (690)(1,359)
Recoveries59 18 268 53 281 186 308 1,179 
Balance, December 31, 20234,980 2,272 7,714 5,998 3,837 5,204 975 9,068 40,048 
Provision for credit losses1,677 825 3,407 (1,699)682 (1,438)246 54 3,754 
Charge-offs(1,448)(6)— — (188)(298)(62)(1,282)(3,284)
Recoveries148 16 586 — 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 
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-FamilyOne-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 impairment652 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 impairment13 — 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-FamilyOne-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 impairment272 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 impairment20 — 1,021 — — 247 — 2,931 4,219 
Total$4,980 $2,272 $7,714 $5,998 $3,837 $5,204 $975 $9,068 $40,048 
The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:
December 31, 2024
Amortized CostAllowance
for Credit
Losses
Primary Collateral Type
(dollars in thousands)Real EstateVehiclesOtherTotal
Commercial and industrial$— $627 $25 $652 $13 
Commercial real estate - owner occupied157 — — 157 — 
Commercial real estate - non-owner occupied14,733 — — 14,733 506 
Construction and land development249 — — 249 33 
Multi-family92 — — 92 92 
One-to-four family residential4,178 — — 4,178 161 
Agricultural and farmland— — 135 135 — 
Municipal, consumer, and other10,569 13 10,587 2,261 
Total$29,978 $632 $173 $30,783 $3,066 
December 31, 2023
Amortized CostAllowance
for Credit
Losses
Primary Collateral Type
(dollars in thousands)Real EstateVehiclesOtherTotal
Commercial and industrial$— $37 $235 $272 $20 
Commercial real estate - owner occupied170 — — 170 — 
Commercial real estate - non-owner occupied15,287 — — 15,287 1,021 
Construction and land development216 — — 216 — 
Multi-family315 — — 315 — 
One-to-four family residential5,459 — — 5,459 247 
Agricultural and farmland144 — — 144 — 
Municipal, consumer, and other14,978 39 24 15,041 2,931 
Total$36,569 $76 $259 $36,904 $4,219 
Schedule of gross charge-offs, further sorted by origination year
Gross charge-offs, further sorted by origination year, were as follows during the year ended December 31, 2024 and 2023.
Gross Charge-Offs for the Year Ended December 31, 2024
Term Loans by Origination YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
(dollars in thousands)20242023202220212020Prior
Commercial and industrial$— $1,264 $75 $— $— $11 $98 $— $1,448 
Commercial real estate - owner occupied— — — — — — — 
Commercial real estate - non-owner occupied— — — — — — — — — 
Construction and land development— — — — — — — — — 
Multi-family— — — 188 — — — — 188 
One-to-four family residential— 15 182 88 — 298 
Agricultural and farmland— — 44 — — — 18 — 62 
Municipal, consumer, and other415 63 11 — — 529 264 — 1,282 
Total$421 $1,328 $138 $203 $$722 $468 $— $3,284 
Gross Charge-Offs for the Year Ended December 31, 2023
Term Loans by Origination YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
(dollars in thousands)20232022202120202019Prior
Commercial and industrial$— $— $— $— $— $— $428 $— $428 
Commercial real estate - owner occupied— — — — — — — 
Commercial real estate - non-owner occupied— — — — 31 — 171 — 202 
Construction and land development— — — — — — — — — 
Multi-family— — — — — — — — — 
One-to-four family residential— — — — 33 — — 34 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other309 100 13 17 10 32 209 — 690 
Total$309 $105 $13 $17 $42 $65 $808 $— $1,359 
Schedule of average investment and interest income for loans individually evaluated for impairment
The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans for the year ended December 31, 2022:
(dollars in thousands)Average
Recorded
Investment
Interest
Income
Recognized
With an allowance recorded:
Commercial and industrial$204 $18 
Commercial real estate - owner occupied970 63 
Commercial real estate - non-owner occupied10,943 740 
Construction and land development— — 
Multi-family— — 
One-to-four family residential384 16 
Agricultural and farmland— — 
Municipal, consumer, and other6,259 236 
Total$18,760 $1,073 
With no related allowance:
Commercial and industrial$9,568 $453 
Commercial real estate - owner occupied8,619 525 
Commercial real estate - non-owner occupied12,636 1,278 
Construction and land development1,505 106 
Multi-family— — 
One-to-four family residential6,238 352 
Agricultural and farmland228 13 
Municipal, consumer, and other3,361 148 
Total$42,155 $2,875 
Total loans individually evaluated for impairment:
Commercial and industrial$9,772 $471 
Commercial real estate - owner occupied9,589 588 
Commercial real estate - non-owner occupied23,579 2,018 
Construction and land development1,505 106 
Multi-family— — 
One-to-four family residential6,622 368 
Agricultural and farmland228 13 
Municipal, consumer, and other9,620 384 
Total$60,915 $3,948 
Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality
Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows during the year ended December 31, 2022:
(dollars in thousands)2022
Beginning balance$413
Reclassification from non-accretable difference548
Accretion income(231)
Ending balance$730
Schedule of recorded investment on past due basis
The following tables present loans by category based on current payment and accrual status:
December 31, 2024
Accruing Interest
(dollars in thousands)Current30 - 89 Days
Past Due
90+ Days
Past Due
NonaccrualTotal
Loans
Commercial and industrial$425,859 $1,878 $— $652 $428,389 
Commercial real estate - owner occupied321,805 354 — 157 322,316 
Commercial real estate - non-owner occupied897,445 299 — 1,821 899,565 
Construction and land development373,933 475 — 249 374,657 
Multi-family431,432 — — 92 431,524 
One-to-four family residential459,069 721 — 4,178 463,968 
Agricultural and farmland293,231 — 135 293,375 
Municipal, consumer, and other251,798 182 368 252,352 
Total$3,454,572 $3,918 $$7,652 $3,466,146 
December 31, 2023
Accruing Interest
(dollars in thousands)Current30 - 89 Days
Past Due
90+ Days
Past Due
NonaccrualTotal
Loans
Commercial and industrial$427,300 $228 $— $272 $427,800 
Commercial real estate - owner occupied295,672 — — 170 295,842 
Commercial real estate - non-owner occupied878,591 255 — 1,835 880,681 
Construction and land development363,735 32 — 216 363,983 
Multi-family417,597 11 — 315 417,923 
One-to-four family residential484,969 1,735 — 4,804 491,508 
Agricultural and farmland286,820 330 — 144 287,294 
Municipal, consumer, and other239,033 252 37 64 239,386 
Total$3,393,717 $2,843 $37 $7,820 $3,404,417 
Schedule of non-accrual loans
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 development216 33 249 
Multi-family92 — 92 
One-to-four family residential654 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 occupied188 1,647 1,835 
Construction and land development216 — 216 
Multi-family— 315 315 
One-to-four family residential14 4,790 4,804 
Agricultural and farmland— 144 144 
Municipal, consumer, and other— 64 64 
Total$538 $7,282 $7,820 
Schedule of loans by category risk ratings
The following tables present loans by category based on their assigned risk ratings determined by management:
December 31, 2024
(dollars in thousands)PassPass-WatchSpecial MentionSubstandardTotal
Commercial and industrial$404,779 $16,429 $1,957 $5,224 $428,389 
Commercial real estate - owner occupied297,150 14,969 2,713 7,484 322,316 
Commercial real estate - non-owner occupied843,487 21,594 — 34,484 899,565 
Construction and land development351,657 1,376 20,847 777 374,657 
Multi-family411,842 3,855 15,735 92 431,524 
One-to-four family residential448,869 6,641 710 7,748 463,968 
Agricultural and farmland269,926 18,154 521 4,774 293,375 
Municipal, consumer, and other236,686 929 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)PassPass-WatchSubstandardTotal
Commercial and industrial$419,494 $7,128 $1,178 $427,800 
Commercial real estate - owner occupied275,649 14,072 6,121 295,842 
Commercial real estate - non-owner occupied822,012 33,283 25,386 880,681 
Construction and land development351,087 12,604 292 363,983 
Multi-family397,951 19,656 316 417,923 
One-to-four family residential472,355 6,671 12,482 491,508 
Agricultural and farmland280,867 3,071 3,356 287,294 
Municipal, consumer, and other222,474 1,721 15,191 239,386 
Total$3,241,889 $98,206 $64,322 $3,404,417 
Schedule of risk ratings of loans, further sorted by origination year
Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2024:
(dollars in thousands)Term Loans by Origination YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
20242023202220212020Prior
Commercial and industrial
Pass$46,635 $43,007 $44,701 $11,617 $17,913 $41,397 $197,516 $1,993 $404,779 
Pass-Watch475 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-Watch6,478 395 3,698 2,111 542 1,374 371 — 14,969 
Special Mention1,877 — — 150 — — 686 — 2,713 
Substandard819 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-Watch3,173 421 6,656 4,031 2,442 4,871 — — 21,594 
Special Mention— — — — — — — — — 
Substandard23,245 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 
Substandard475 — 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-Watch2,791 — 567 — — 492 — 3,855 
Special Mention6,936 — — — 8,799 — — — 15,735 
Substandard92 — — — — — — — 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-Watch1,126 1,271 936 242 405 2,252 134 275 6,641 
Special Mention— — — 592 118 — — — 710 
Substandard281 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-Watch100 2,671 1,424 1,403 508 861 10,633 554 18,154 
Special Mention134 87 — — — — 300 — 521 
Substandard332 51 494 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 YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
20242023202220212020Prior
Municipal, consumer, and other
Pass$77,779 $37,678 $14,475 $23,204 $12,479 $37,460 $33,611 $— $236,686 
Pass-Watch103 50 12 — 757 — 929 
Special Mention— — — — — 4,107 — — 4,107 
Substandard21 33 — — 10,570 — 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-Watch14,246 6,118 13,473 8,920 3,897 12,400 22,449 2,444 83,947 
Special Mention8,947 368 9,022 13,012 8,917 4,107 2,217 — 46,590 
Substandard25,265 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 YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
20232022202120202019Prior
Commercial and industrial
Pass$90,931 $58,364 $19,283 $26,816 $5,269 $29,550 $187,579 $1,702 $419,494 
Pass-Watch2,025 1,340 892 144 753 471 956 547 7,128 
Substandard111 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-Watch4,061 943 5,210 1,474 1,573 811 — — 14,072 
Substandard2,734 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-Watch810 6,893 7,013 353 4,230 154 13,585 245 33,283 
Substandard13,376 124 286 — 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-Watch153 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-Watch3,111 7,197 — 8,821 51 468 — 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-Watch2,382 286 940 486 212 1,804 203 358 6,671 
Substandard1,507 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-Watch953 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-Watch13 — — 1,693 — — 1,721 
Substandard51 103 15,012 15,191 
Total$43,635 $57,513 $27,919 $14,348 $1,024 $59,204 $35,742 $$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-Watch13,504 27,776 14,493 11,308 6,890 6,120 15,079 3,036 98,206 
Substandard17,779 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