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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables)
3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Summary of Loans
Major categories of loans are summarized as follows:
(dollars in thousands)March 31, 2025December 31, 2024
Commercial and industrial$441,261 $428,389 
Commercial real estate - owner occupied321,990 322,316 
Commercial real estate - non-owner occupied891,022 899,565 
Construction and land development376,046 374,657 
Multi-family424,096 431,524 
One-to-four family residential455,376 463,968 
Agricultural and farmland292,240 293,375 
Municipal, consumer, and other259,747 252,352 
Loans, before allowance for credit losses3,461,778 3,466,146 
Allowance for credit losses(42,111)(42,044)
Loans, net of allowance for credit losses$3,419,667 $3,424,102 
Schedule of Activity in Allowance for Loan 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-FamilyOne-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 losses1,055 192 (514)324 (213)(112)108 (344)496 
Charge-offs(385)(1)— (6)— (85)— (188)(665)
Recoveries59 — — 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-FamilyOne-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 losses239 (117)2,102 (454)(421)32 (829)560 
Charge-offs(15)— — — — (21)— (191)(227)
Recoveries26 242 — 84 72 434 
Ending balance$5,230 $2,157 $10,058 $5,545 $3,845 $4,846 $1,014 $8,120 $40,815 
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-FamilyOne-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 impairment884 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 impairment147 — 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-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 $42,044 
The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:
March 31, 2025
Amortized CostAllowance
for Credit
Losses
Primary Collateral Type
(dollars in thousands)Real EstateVehiclesOtherTotal
Commercial and industrial$— $775 $109 $884 $147 
Commercial real estate - owner occupied307 — — 307 — 
Commercial real estate - non-owner occupied12,726 — — 12,726 390 
Construction and land development244 — — 244 50 
Multi-family90 — — 90 90 
One-to-four family residential3,552 — — 3,552 96 
Agricultural and farmland— — 15 15 — 
Municipal, consumer, and other14,159 — 10 14,169 1,961 
Total$31,078 $775 $134 $31,987 $2,734 
December 31, 2024
Amortized CostAllowance
for Credit
Losses
Primary Collateral Type
(dollars in thousands)Real EstateVehiclesOtherTotal
Commercial and industrial$— $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 $3,066 
Schedule of Gross Charge-Offs, Further Sorted by Origination Year
Gross charge-offs, further sorted by origination year, were as follows during the three months ended March 31, 2025 and 2024.
Gross Charge-Offs for the Three Months Ended March 31, 2025
Term Loans by Origination YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
(dollars in thousands)20252024202320222021Prior
Commercial and industrial$— $— $319 $— $46 $— $20 $— $385 
Commercial real estate - owner occupied— — — — — — — 
Commercial real estate - non-owner occupied— — — — — — — — — 
Construction and land development— — — — — — 
Multi-family— — — — — — — — — 
One-to-four family residential— — — — 81 — 85 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other67 60 — — — 60 — 188 
Total$67 $60 $320 $$47 $85 $83 $— $665 
Gross Charge-Offs for the Three Months Ended March 31, 2024
Term Loans by Origination YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
(dollars in thousands)20242023202220212020Prior
Commercial and industrial$— $$— $— $— $11 $$— $15 
Commercial real estate - owner occupied— — — — — — — — — 
Commercial real estate - non-owner occupied— — — — — — — — — 
Construction and land development— — — — — — — — — 
Multi-family— — — — — — — — — 
One-to-four family residential— — — — 12 — 21 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other44 56 — — — 85 — 191 
Total$44 $59 $$— $— $17 $98 $— $227 
Schedule of Recorded Investment on Past Due Basis
The following tables present loans by category based on current payment and accrual status:
March 31, 2025
Accruing Interest
(dollars in thousands)Current30 - 89 Days
Past Due
90+ Days
Past Due
NonaccrualTotal
Loans
Commercial and industrial$438,705 $1,672 $— $884 $441,261 
Commercial real estate - owner occupied320,877 806 — 307 321,990 
Commercial real estate - non-owner occupied890,989 33 — — 891,022 
Construction and land development375,802 — — 244 376,046 
Multi-family417,452 6,554 — 90 424,096 
One-to-four family residential450,754 1,070 — 3,552 455,376 
Agricultural and farmland292,075 150 — 15 292,240 
Municipal, consumer, and other259,650 83 10 259,747 
Total$3,446,304 $10,368 $$5,102 $3,461,778 
December 31, 2024
Accruing Interest
(dollars in thousands)Current30 - 89 Days
Past Due
90+ Days
Past Due
NonaccrualTotal
Loans
Commercial and industrial$425,859 $1,878 $— $652 $428,389 
Commercial real estate - owner occupied321,805 354 — 157 322,316 
Commercial real estate - non-owner occupied897,445 299 — 1,821 899,565 
Construction and land development373,933 475 — 249 374,657 
Multi-family431,432 — — 92 431,524 
One-to-four family residential459,069 721 — 4,178 463,968 
Agricultural and farmland293,231 — 135 293,375 
Municipal, consumer, and other251,798 182 368 252,352 
Total$3,454,572 $3,918 $$7,652 $3,466,146 
Schedule of Non-Accrual Loans
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 development214 30 244 
Multi-family90 — 90 
One-to-four family residential582 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 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 
Schedule of Loans by Category Risk Ratings
The following tables present loans by category based on their assigned risk ratings determined by management:
March 31, 2025
(dollars in thousands)PassPass-WatchSpecial MentionSubstandardTotal
Commercial and industrial$413,933 $15,961 $4,574 $6,793 $441,261 
Commercial real estate - owner occupied294,305 16,315 3,988 7,382 321,990 
Commercial real estate - non-owner occupied842,602 15,907 — 32,513 891,022 
Construction and land development352,844 1,587 20,844 771 376,046 
Multi-family406,806 10,663 6,537 90 424,096 
One-to-four family residential439,022 8,259 798 7,297 455,376 
Agricultural and farmland262,265 17,219 8,093 4,663 292,240 
Municipal, consumer, and other244,622 910 — 14,215 259,747 
Total$3,256,399 $86,821 $44,834 $73,724 $3,461,778 
December 31, 2024
(dollars in thousands)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 
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 March 31, 2025:
(dollars in thousands)Term Loans by Origination YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
20252024202320222021Prior
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— 1,902 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-Watch1,640 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— — — — — — — — — 
Substandard24,786 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-Watch19 249 — — — 17 699 603 1,587 
Special Mention12,093 — — 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-Watch110 2,667 16 — — 7,866 — 10,663 
Special Mention6,537 — — — — — — — 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-Watch89 2,869 1,196 726 302 2,634 137 306 8,259 
Special Mention— — — — 586 212 — — 798 
Substandard328 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-Watch1,200 466 2,006 273 852 1,326 10,995 101 17,219 
Special Mention2,528 — 670 1,333 944 — 2,618 — 8,093 
Substandard— 330 51 486 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 YearRevolving
Loans
Revolving
Loans
Converted
to Term
Total
20252024202320222021Prior
Municipal, consumer, and other
Pass$26,085 $61,718 $34,258 $18,437 $23,004 $48,456 $32,663 $$244,622 
Pass-Watch— 100 44 10 750 — 910 
Special Mention— — — — — — — — — 
Substandard15 29 — 14,158 — 14,215 
Total$26,100 $61,826 $34,306 $18,470 $23,014 $63,364 $32,666 $$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-Watch3,058 13,418 5,548 6,623 8,547 22,976 24,751 1,900 86,821 
Special Mention21,158 1,847 670 10,084 1,802 581 8,692 — 44,834 
Substandard25,129 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 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