LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2025

Major categories of loans are summarized as follows:


(dollars in thousands)	March 31, 2025		December 31, 2024

Commercial and industrial	$	441,261	$	428,389
Commercial real estate - owner occupied	321,990		322,316
Commercial real estate - non-owner occupied	891,022		899,565
Construction and land development	376,046		374,657
Multi-family	424,096		431,524
One-to-four family residential	455,376		463,968
Agricultural and farmland	292,240		293,375
Municipal, consumer, and other	259,747		252,352
Loans, before allowance for credit losses	3,461,778		3,466,146
Allowance for credit losses	(42,111)		(42,044)
Loans, net of allowance for credit losses	$	3,419,667	$	3,424,102

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 March 31, 2025, 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 gross domestic product ("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:


	Three Months Ended March 31, 2025
(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

Beginning balance	$	5,357	$	3,107	$	11,707	$	4,302	$	4,331	$	3,908	$	1,170	$	8,162	$	42,044

Provision for credit losses	1,055		192		(514)		324		(213)		(112)		108		(344)		496
Charge-offs	(385)		(1)		—		(6)		—		(85)		—		(188)		(665)
Recoveries	59		2		—		1		—		44		38		92		236
Ending balance	$	6,086	$	3,300	$	11,193	$	4,621	$	4,118	$	3,755	$	1,316	$	7,722	$	42,111

	Three Months Ended March 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

Beginning balance	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

Provision for credit losses	239		(117)		2,102		(454)		8		(421)		32		(829)		560
Charge-offs	(15)		—		—		—		—		(21)		—		(191)		(227)
Recoveries	26		2		242		1		—		84		7		72		434
Ending balance	$	5,230	$	2,157	$	10,058	$	5,545	$	3,845	$	4,846	$	1,014	$	8,120	$	40,815

Gross charge-offs, further sorted by origination year, were as follows during the three months ended March 31, 2025 and 2024.


	Gross Charge-Offs for the Three Months Ended March 31, 2025
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2025		2024		2023		2022		2021		Prior

Commercial and industrial	$	—	$	—	$	319	$	—	$	46	$	—	$	20	$	—	$	385
Commercial real estate - owner occupied	—		—		—		—		1		—		—		—		1
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		2		—		4		—		—		6
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		1		—		81		3		—		85
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	67		60		1		—		—		—		60		—		188
Total	$	67	$	60	$	320	$	3	$	47	$	85	$	83	$	—	$	665

	Gross Charge-Offs for the Three Months Ended March 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	$	—	$	3	$	—	$	—	$	—	$	11	$	1	$	—	$	15
Commercial real estate - owner occupied	—		—		—		—		—		—		—		—		—
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		3		—		—		6		12		—		21
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	44		56		6		—		—		—		85		—		191
Total	$	44	$	59	$	9	$	—	$	—	$	17	$	98	$	—	$	227

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


	March 31, 2025
(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	$	440,377	$	321,683	$	878,296	$	375,802	$	424,006	$	451,824	$	292,225	$	245,578	$	3,429,791
Individually evaluated for impairment	884		307		12,726		244		90		3,552		15		14,169		31,987
Total	$	441,261	$	321,990	$	891,022	$	376,046	$	424,096	$	455,376	$	292,240	$	259,747	$	3,461,778

Allowance for credit losses:
Collectively evaluated for impairment	$	5,939	$	3,300	$	10,803	$	4,571	$	4,028	$	3,659	$	1,316	$	5,761	$	39,377
Individually evaluated for impairment	147		—		390		50		90		96		—		1,961		2,734
Total	$	6,086	$	3,300	$	11,193	$	4,621	$	4,118	$	3,755	$	1,316	$	7,722	$	42,111

	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

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:


	March 31, 2025
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	775	$	109	$	884	$	147
Commercial real estate - owner occupied	307		—		—		307		—
Commercial real estate - non-owner occupied	12,726		—		—		12,726		390
Construction and land development	244		—		—		244		50
Multi-family	90		—		—		90		90
One-to-four family residential	3,552		—		—		3,552		96
Agricultural and farmland	—		—		15		15		—
Municipal, consumer, and other	14,159		—		10		14,169		1,961
Total	$	31,078	$	775	$	134	$	31,987	$	2,734

	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

Accrued interest on loans is excluded from the estimate of credit losses and totaled $17.5 million and $19.6 million as of March 31, 2025 and December 31, 2024, 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:


	March 31, 2025
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	438,705	$	1,672	$	—	$	884	$	441,261
Commercial real estate - owner occupied	320,877		806		—		307		321,990
Commercial real estate - non-owner occupied	890,989		33		—		—		891,022
Construction and land development	375,802		—		—		244		376,046
Multi-family	417,452		6,554		—		90		424,096
One-to-four family residential	450,754		1,070		—		3,552		455,376
Agricultural and farmland	292,075		150		—		15		292,240
Municipal, consumer, and other	259,650		83		4		10		259,747
Total	$	3,446,304	$	10,368	$	4	$	5,102	$	3,461,778


	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

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


	March 31, 2025
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	445	$	439	$	884
Commercial real estate - owner occupied	—		307		307
Commercial real estate - non-owner occupied	—		—		—
Construction and land development	214		30		244
Multi-family	90		—		90
One-to-four family residential	582		2,970		3,552
Agricultural and farmland	—		15		15
Municipal, consumer, and other	—		10		10
Total	$	1,331	$	3,771	$	5,102

	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

Credit Quality Indicators

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 March 31, 2025 and December 31, 2024.

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


	March 31, 2025
(dollars in thousands)	Pass		Pass-Watch		Special Mention		Substandard		Total

Commercial and industrial	$	413,933	$	15,961	$	4,574	$	6,793	$	441,261
Commercial real estate - owner occupied	294,305		16,315		3,988		7,382		321,990
Commercial real estate - non-owner occupied	842,602		15,907		—		32,513		891,022
Construction and land development	352,844		1,587		20,844		771		376,046
Multi-family	406,806		10,663		6,537		90		424,096
One-to-four family residential	439,022		8,259		798		7,297		455,376
Agricultural and farmland	262,265		17,219		8,093		4,663		292,240
Municipal, consumer, and other	244,622		910		—		14,215		259,747
Total	$	3,256,399	$	86,821	$	44,834	$	73,724	$	3,461,778


	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

Risk ratings of loans, further sorted by origination year, are as follows as of March 31, 2025:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2025		2024		2023		2022		2021		Prior
Commercial and industrial
Pass	$	15,183	$	61,571	$	55,516	$	44,509	$	10,641	$	28,677	$	195,989	$	1,847	$	413,933
Pass-Watch	—		576		1,614		510		1,053		1,704		9,618		886		15,961
Special Mention	—		—		—		—		—		—		4,574		—		4,574
Substandard	—		1		1,902		1,233		821		—		2,209		627		6,793
Total	$	15,183	$	62,148	$	59,032	$	46,252	$	12,515	$	30,381	$	212,390	$	3,360	$	441,261

Commercial real estate - owner occupied
Pass	$	13,677	$	57,045	$	24,637	$	53,818	$	46,820	$	78,189	$	19,153	$	966	$	294,305
Pass-Watch	1,640		3,941		260		3,377		2,353		1,444		3,300		—		16,315
Special Mention	—		1,847		—		—		272		369		1,500		—		3,988
Substandard	—		815		680		672		3,818		1,332		—		65		7,382
Total	$	15,317	$	63,648	$	25,577	$	57,867	$	53,263	$	81,334	$	23,953	$	1,031	$	321,990

Commercial real estate - non-owner occupied
Pass	$	39,275	$	85,190	$	104,130	$	240,197	$	211,177	$	137,266	$	23,773	$	1,594	$	842,602
Pass-Watch	—		2,550		412		1,733		3,977		7,235		—		—		15,907
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	24,786		5,489		209		—		—		2,029		—		—		32,513
Total	$	64,061	$	93,229	$	104,751	$	241,930	$	215,154	$	146,530	$	23,773	$	1,594	$	891,022

Construction and land development
Pass	$	35,049	$	173,174	$	45,656	$	65,104	$	21,987	$	1,212	$	10,427	$	235	$	352,844
Pass-Watch	19		249		—		—		—		17		699		603		1,587
Special Mention	12,093		—		—		8,751		—		—		—		—		20,844
Substandard	—		475		—		214		—		82		—		—		771
Total	$	47,161	$	173,898	$	45,656	$	74,069	$	21,987	$	1,311	$	11,126	$	838	$	376,046

Multi-family
Pass	$	12,572	$	45,184	$	89,288	$	81,284	$	87,835	$	88,007	$	2,197	$	439	$	406,806
Pass-Watch	110		2,667		16		—		—		7,866		—		4		10,663
Special Mention	6,537		—		—		—		—		—		—		—		6,537
Substandard	—		90		—		—		—		—		—		—		90
Total	$	19,219	$	47,941	$	89,304	$	81,284	$	87,835	$	95,873	$	2,197	$	443	$	424,096

One-to-four family residential
Pass	$	17,329	$	34,019	$	84,902	$	79,177	$	69,500	$	93,164	$	54,636	$	6,295	$	439,022
Pass-Watch	89		2,869		1,196		726		302		2,634		137		306		8,259
Special Mention	—		—		—		—		586		212		—		—		798
Substandard	328		234		335		527		455		5,017		16		385		7,297
Total	$	17,746	$	37,122	$	86,433	$	80,430	$	70,843	$	101,027	$	54,789	$	6,986	$	455,376

Agricultural and farmland
Pass	$	20,374	$	33,833	$	33,398	$	29,748	$	26,891	$	29,898	$	87,437	$	686	$	262,265
Pass-Watch	1,200		466		2,006		273		852		1,326		10,995		101		17,219
Special Mention	2,528		—		670		1,333		944		—		2,618		—		8,093
Substandard	—		330		51		486		7		3,138		386		265		4,663
Total	$	24,102	$	34,629	$	36,125	$	31,840	$	28,694	$	34,362	$	101,436	$	1,052	$	292,240


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2025		2024		2023		2022		2021		Prior
Municipal, consumer, and other
Pass	$	26,085	$	61,718	$	34,258	$	18,437	$	23,004	$	48,456	$	32,663	$	1	$	244,622
Pass-Watch	—		100		44		4		10		750		2		—		910
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	15		8		4		29		—		14,158		1		—		14,215
Total	$	26,100	$	61,826	$	34,306	$	18,470	$	23,014	$	63,364	$	32,666	$	1	$	259,747

Total by risk rating
Pass	$	179,544	$	551,734	$	471,785	$	612,274	$	497,855	$	504,869	$	426,275	$	12,063	$	3,256,399
Pass-Watch	3,058		13,418		5,548		6,623		8,547		22,976		24,751		1,900		86,821
Special Mention	21,158		1,847		670		10,084		1,802		581		8,692		—		44,834
Substandard	25,129		7,442		3,181		3,161		5,101		25,756		2,612		1,342		73,724
Total	$	228,889	$	574,441	$	481,184	$	632,142	$	513,305	$	554,182	$	462,330	$	15,305	$	3,461,778

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

Modifications

There were no loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, modified loans totaled $0.5 million and $0.5 million, respectively, and were current and performing in accordance with the modified terms.

Pledged Loans

As of March 31, 2025 and December 31, 2024, the Company pledged loans totaling $1.89 billion and $1.91 billion, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity.