
December 31, 2023	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
(In Thousands of Dollars)
Allowance for credit losses
Beginning balance	$	14,840		$	4,186		$	4,374		$	3,578		$	26,978
PCD ACL on loans acquired		850			138			11			0			999
Provision for credit losses		2,808			1,931			2,834			1,145			8,718
Loans charged off		(349	)		(1,272	)		(384	)		(932	)		(2,937	)
Recoveries		1			104			81			496			682
Total ending allowance balance	$	18,150		$	5,087		$	6,916		$	4,287		$	34,440


December 31, 2022	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	15,879		$	4,949		$	4,870		$	3,688		$	29,386
Provision for credit losses		(742	)		1,204			(493	)		281			250
Loans charged off		(300	)		(2,042	)		(92	)		(870	)		(3,304	)
Recoveries		3			75			89			479			646
Total ending allowance balance	$	14,840		$	4,186		$	4,374		$	3,578		$	26,978

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from December 31, 2011 to December 31, 2024. As of December 31, 2024, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, with a stable trend in unemployment, and a level trend of delinquencies. Management adjusted historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from December 31, 2023 to December 31, 2024 is largely attributed to an increase in the specific reserve related to the individual evaluation of a commercial real estate non-owner occupied loan, adjustments made to the Portfolio Composition and Growth qualitative factor and increased loan balances. These factors were partially offset by the reduction of the specific reserve related to a loan settlement, reduction of specific reserve related to payoff of another individually evaluated relationship, and improved loss rates for certain loan pools under the PD/LGD methodology.

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of December 31, 2024 and December 31, 2023:


(In Thousands of Dollars)	Nonaccrual with no allowance for credit loss		Nonaccrual with an allowance for credit loss		Loans past due over 89 days still accruing
December 31, 2024
Commercial real estate
Owner occupied	$	0	$	937	$	0
Non-owner occupied		0		8,105		0
Farmland		1,757		3		0
Other		0		0		525
Commercial
Commercial and industrial		145		3,713		0
Agricultural		177		183		0
Residential real estate
1-4 family residential		513		3,967		90
Home equity lines of credit		94		409		0
Consumer
Indirect		37		463		0
Direct		66		34		0
Other		0		0		0
Total loans	$	2,789	$	17,814	$	615

The above table for the period ending December 31, 2024 does not include a $1.52 million owner occupied commercial real estate loan and a $77 thousand commercial & industrial loan that are held-for-sale and in nonaccrual status. The above table for the period ending December 31, 2023 does not include a $1.63 million non-owner occupied commercial real estate loan that is held-for-sale and in nonaccrual status.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2024 and December 31, 2023:


(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
December 31, 2024
Commercial real estate
Owner occupied	$	0	$	0	$	0	$	0
Non-owner occupied		8,119		0		0		0
Farmland		1,757		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		0		2,591		0		0
Agricultural		0		177		0		0
Residential real estate
1-4 family residential		3,573		0		0		0
Home equity lines of credit		264		0		0		0
Consumer
Indirect		0		0		70		0
Direct		0		0		9		66
Other		0		0		0		0
Total loans	$	13,713	$	2,768	$	79	$	66


(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
December 31, 2023
Commercial real estate
Owner occupied	$	1,804	$	0	$	0	$	0
Non-owner occupied		1,335		0		0		0
Farmland		1,957		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		94		867		0		0
Agricultural		0		203		0		0
Residential real estate
1-4 family residential		3,352		0		0		0
Home equity lines of credit		294		0		0		0
Consumer
Indirect		0		0		53		0
Direct		0		0		19		66
Other		0		0		0		0
Total loans	$	8,836	$	1,070	$	72	$	66

The following tables present the aging of the amortized cost basis in past due loans as of December 31, 2024 and 2023 by class of loans:


December 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
(In Thousands of Dollars)
Commercial real estate
Owner occupied	$	95	$	446	$	937	$	1,478	$	389,630	$	391,108
Non-owner occupied		15		52		8,105		8,172		687,112		695,284
Farmland		53		0		1,760		1,813		204,787		206,600
Other		0		113		525		638		294,543		295,181
Commercial
Commercial and industrial		941		324		3,858		5,123		346,410		351,533
Agricultural		284		26		360		670		55,759		56,429
Residential real estate
1-4 family residential		6,688		1,943		4,570		13,201		832,338		845,539
Home equity lines of credit		104		0		503		607		157,532		158,139
Consumer
Indirect		1,385		473		500		2,358		238,997		241,355
Direct		59		30		100		189		18,996		19,185
Other		0		1		0		1		7,992		7,993
Total loans	$	9,624	$	3,408	$	21,218	$	34,250	$	3,234,096	$	3,268,346


December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
Commercial real estate
Owner occupied	$	302	$	293	$	2,634	$	3,229	$	395,799	$	399,028
Non-owner occupied		90		0		1,510		1,600		710,195		711,795
Farmland		365		0		1,966		2,331		200,395		202,726
Other		0		0		80		80		223,697		223,777
Commercial
Commercial and industrial		540		199		1,802		2,541		345,278		347,819
Agricultural		292		40		520		852		58,223		59,075
Residential real estate
1-4 family residential		6,819		4,488		3,817		15,124		828,437		843,561
Home equity lines of credit		729		34		519		1,282		141,189		142,471
Consumer
Indirect		2,045		289		447		2,781		232,105		234,886
Direct		153		23		135		311		23,514		23,825
Other		4		0		5		9		9,155		9,164
Total loans:	$	11,339	$	5,366	$	13,435	$	30,140	$	3,167,987	$	3,198,127

The Company adopted the accounting guidance in ASU No. 2022-02, effective as of January 1, 2023, which eliminates the recognition and measurement of troubled debt restructurings ("TDRs"). Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model.

The following tables present the amortized cost basis of loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2024 and December 31, 2023, by class and type of modification at December 31, 2024 and 2023. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

As of December 31, 2024, the Company had no commitments to lend any additional funds to the borrowers included in the previous tables.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of such loans that have been modified in the twelve months ended December 31, 2024 and December 31, 2023:

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance of credit losses is adjusted by the same amount.

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, credit documentation, public information and current economic trends, among other factors. The Company establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $3 million management, monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt. Management also affirms the risk ratings for the loans and leases in their respective portfolios on an annual basis. The Company uses the following definitions for risk ratings:

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. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans classified as substandard are inadequately protected by the current net worth 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, on the basis of currently existing facts, 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 to be pass rated loans.

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows:


December 31, 2024	Pass		Special Mention		Sub standard		Doubtful		Total
(In Thousands of Dollars)
Commercial real estate
Owner occupied	$	383,556	$	4,865	$	2,687	$	0	$	391,108
Non-owner occupied		642,542		18,127		33,781		834		695,284
Farmland		204,348		0		2,252		0		206,600
Other		285,119		10,030		32		0		295,181
Commercial
Commercial and industrial		340,580		462		10,491		0		351,533
Agricultural		56,005		61		363		0		56,429
Total loans	$	1,912,150	$	33,545	$	49,606	$	834	$	1,996,135


December 31, 2023	Pass		Special Mention		Sub standard		Total

Commercial real estate
Owner occupied	$	386,015	$	9,628	$	3,385	$	399,028
Non-owner occupied		648,063		27,938		35,794		711,795
Farmland		200,240		0		2,486		202,726
Other		215,459		0		8,318		223,777
Commercial
Commercial and industrial		334,764		646		12,409		347,819
Agricultural		58,506		17		552		59,075
Total loans	$	1,843,047	$	38,229	$	62,944	$	1,944,220

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential, consumer and indirect loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The above table for the period ending December 31, 2024 does not include a $1.52 million owner occupied commercial real estate loan and a $77 thousand commercial & industrial loan that are held-for-sale and risk-rated substandard. The above table for the period ending December 31, 2023 does not include a $1.63 million non-owner occupied commercial real estate loan that is held-for-sale and risk-rated substandard. In the 1-4 family residential real estate portfolio at December 31, 2024, other real estate owned and foreclosure properties were $52 thousand and $631 thousand, respectively. In the 1-4 family residential real estate portfolio at December 31, 2023, other real estate owned and foreclosure properties were $92 thousand and $207 thousand, respectively.

The following table presents the amortized cost in residential, consumer and indirect auto loans based on payment activity. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans.


	Residential Real Estate				Consumer
December 31, 2024	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
(In Thousands of Dollars)
Performing	$	840,969	$	157,636	$	240,855	$	19,085	$	7,993
Nonperforming		4,570		503		500		100		0
Total loans	$	845,539	$	158,139	$	241,355	$	19,185	$	7,993


	Residential Real Estate				Consumer
December 31, 2023	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other

Performing	$	839,744	$	141,952	$	234,439	$	23,690	$	9,159
Nonperforming		3,817		519		447		135		5
Total loans	$	843,561	$	142,471	$	234,886	$	23,825	$	9,164

The following tables present total loans by risk categories and year of origination.


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	45,588	$	56,389	$	46,323	$	60,179	$	45,428	$	127,665	$	1,984	$	383,556
Special mention		0		3,228		0		1,118		0		519		0		4,865
Substandard		0		0		659		0		0		1,962		66		2,687
Total commercial real estate - Owner occupied loans	$	45,588	$	59,617	$	46,982	$	61,297	$	45,428	$	130,146	$	2,050	$	391,108

Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	72	$	0	$	21	$	0	$	0	$	93

Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	61,974	$	44,323	$	125,547	$	78,933	$	71,322	$	251,465	$	8,978	$	642,542
Special mention		0		0		6,284		313		1,356		10,024		150		18,127
Substandard		7,065		407		0		11,249		7,129		7,931		0		33,781
Doubtful		0		0		0		834		0		0		0		834
Total commercial real estate - Non-owner occupied loans	$	69,039	$	44,730	$	131,831	$	91,329	$	79,807	$	269,420	$	9,128	$	695,284

Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	4,380	$	146	$	0	$	0	$	4,526

Commercial real estate - Farmland:
Risk Rating
Pass	$	19,832	$	20,803	$	39,126	$	18,734	$	31,620	$	71,162	$	3,071	$	204,348
Substandard		0		0		0		317		0		1,935		0		2,252
Total commercial real estate - Farmland loans	$	19,832	$	20,803	$	39,126	$	19,051	$	31,620	$	73,097	$	3,071	$	206,600

Commercial real estate - Farmland: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Commercial real estate - Other:
Risk Rating
Pass	$	40,993	$	108,346	$	65,724	$	39,091	$	8,493	$	21,744	$	728	$	285,119
Special mention		0		990		7,480		112		0		1,448		0		10,030
Substandard		0		0		0		0		0		32		0		32
Total commercial real estate - Other loans	$	40,993	$	109,336	$	73,204	$	39,203	$	8,493	$	23,224	$	728	$	295,181

Commercial real estate - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0


	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	84,491	$	72,388	$	55,279	$	26,780	$	10,744	$	20,223	$	70,675	$	340,580
Special mention		0		0		0		167		165		46		84		462
Substandard		31		118		5,653		282		244		1,682		2,481		10,491
Total commercial - Commercial and industrial loans	$	84,522	$	72,506	$	60,932	$	27,229	$	11,153	$	21,951	$	73,240	$	351,533

Commercial - Commercial and industrial: Current period gross write-offs	$	48	$	273	$	389	$	125	$	228	$	257	$	313	$	1,633

Commercial - Agricultural:
Risk Rating
Pass	$	9,085	$	11,703	$	13,160	$	5,481	$	1,768	$	850	$	13,958	$	56,005
Special mention		0		0		0		0		0		0		61		61
Substandard		0		0		35		29		162		137		0		363
Total commercial - Agricultural loans	$	9,085	$	11,703	$	13,195	$	5,510	$	1,930	$	987	$	14,019	$	56,429

Commercial - Agricultural: Current period gross write-offs	$	0	$	1	$	49	$	13	$	29	$	17	$	0	$	109

Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	79,820	$	69,319	$	157,403	$	153,569	$	119,770	$	257,827	$	3,261	$	840,969
Nonperforming		0		0		473		278		1,626		2,193		0		4,570
Total residential real estate - 1-4 family residential loans	$	79,820	$	69,319	$	157,876	$	153,847	$	121,396	$	260,020	$	3,261	$	845,539

Residential real estate - 1-4 family residential: Current period gross write-offs	$	0	$	0	$	0	$	37	$	0	$	118	$	0	$	155

Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	119	$	153	$	127	$	68	$	4,118	$	153,051	$	157,636
Nonperforming		0		0		29		0		0		376		98		503
Total residential real estate - Home equity lines of credit loans	$	0	$	119	$	182	$	127	$	68	$	4,494	$	153,149	$	158,139

Residential real estate - Home equity lines of credit: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0


	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	78,306	$	55,525	$	49,548	$	23,331	$	14,183	$	19,962	$	0	$	240,855
Nonperforming		0		57		233		97		62		51		0		500
Total consumer - Indirect loans	$	78,306	$	55,582	$	49,781	$	23,428	$	14,245	$	20,013	$	0	$	241,355

Consumer - Indirect: Current period gross write-offs	$	10	$	100	$	206	$	192	$	174	$	430	$	0	$	1,112

Consumer - Direct:
Payment Performance
Performing	$	2,735	$	2,319	$	2,406	$	1,075	$	792	$	9,432	$	326	$	19,085
Nonperforming		0		0		6		15		66		13		0		100
Total consumer - Direct loans	$	2,735	$	2,319	$	2,412	$	1,090	$	858	$	9,445	$	326	$	19,185

Consumer - Direct: Current period gross write-offs	$	0	$	7	$	38	$	6	$	5	$	120	$	0	$	176

Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	0	$	60	$	0	$	409	$	7,524	$	7,993
Nonperforming		0		0		0		0		0		0		0		0
Total consumer - Other loans	$	0	$	0	$	0	$	60	$	0	$	409	$	7,524	$	7,993

Consumer - Other: Current period gross write-offs	$	0	$	0	$	1	$	0	$	0	$	182	$	0	$	183


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	57,983	$	58,178	$	66,205	$	42,023	$	48,849	$	109,831	$	2,946	$	386,015
Special mention		0		293		0		8,779		0		556		0		9,628
Substandard		0		0		0		10		490		2,701		184		3,385
Total commercial real estate - Owner occupied loans	$	57,983	$	58,471	$	66,205	$	50,812	$	49,339	$	113,088	$	3,130	$	399,028

Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	1	$	0	$	0	$	1

Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	49,177	$	135,433	$	88,188	$	77,713	$	81,079	$	205,729	$	10,744	$	648,063
Special mention		0		0		12,156		0		6,565		9,217		0		27,938
Substandard		0		0		3,972		10,037		3,492		17,794		499		35,794
Total commercial real estate - Non-owner occupied loans	$	49,177	$	135,433	$	104,316	$	87,750	$	91,136	$	232,740	$	11,243	$	711,795

Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	144	$	201	$	0	$	345

Commercial real estate - Farmland:
Risk Rating
Pass	$	22,576	$	40,101	$	20,890	$	34,036	$	18,634	$	59,900	$	4,103	$	200,240
Substandard		0		0		330		0		26		2,130		0		2,486
Total commercial real estate - Farmland loans	$	22,576	$	40,101	$	21,220	$	34,036	$	18,660	$	62,030	$	4,103	$	202,726

Commercial real estate - Farmland: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	3	$	0	$	3

Commercial real estate - Other:
Risk Rating
Pass	$	68,911	$	56,753	$	47,895	$	9,063	$	8,516	$	23,269	$	1,052	$	215,459
Substandard		0		0		0		8,186		0		132		0		8,318
Total commercial real estate - Other loans	$	68,911	$	56,753	$	47,895	$	17,249	$	8,516	$	23,401	$	1,052	$	223,777


	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	90,807	$	85,255	$	40,444	$	21,794	$	9,736	$	23,030	$	63,698	$	334,764
Special mention		0		141		355		21		0		0		129		646
Substandard		195		3,551		980		404		1,077		699		5,503		12,409
Total commercial - Commercial and industrial loans	$	91,002	$	88,947	$	41,779	$	22,219	$	10,813	$	23,729	$	69,330	$	347,819

Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	178	$	579	$	11	$	16	$	394	$	0	$	1,178

Commercial - Agricultural:
Risk Rating
Pass	$	13,738	$	17,368	$	8,917	$	3,584	$	1,386	$	1,133	$	12,380	$	58,506
Special mention		0		0		0		0		0		0		17		17
Substandard		0		33		118		225		24		152		0		552
Total commercial - Agricultural loans	$	13,738	$	17,401	$	9,035	$	3,809	$	1,410	$	1,285	$	12,397	$	59,075

Commercial - Agricultural: Current period gross write-offs	$	0	$	15	$	70	$	3	$	0	$	6	$	0	$	94

Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	63,365	$	171,862	$	164,469	$	132,989	$	49,380	$	254,027	$	3,652	$	839,744
Nonperforming		37		58		312		1,645		115		1,650		0		3,817
Total residential real estate - 1-4 family residential loans	$	63,402	$	171,920	$	164,781	$	134,634	$	49,495	$	255,677	$	3,652	$	843,561

Residential real estate - 1-4 family residential: Current period gross write-offs	$	52	$	0	$	49	$	130	$	0	$	129	$	0	$	360

Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	19	$	14	$	111	$	51	$	3,302	$	138,455	$	141,952
Nonperforming		0		26		13		15		0		465		0		519
Total residential real estate - Home equity lines of credit loans	$	0	$	45	$	27	$	126	$	51	$	3,767	$	138,455	$	142,471

Residential real estate - Home equity lines of credit: Current period gross write-offs	$	0	$	0	$	0	$	8	$	0	$	16	$	0	$	24


	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	74,425	$	71,705	$	32,528	$	21,163	$	11,395	$	23,223	$	0	$	234,439
Nonperforming		54		108		138		85		26		36		0		447
Total consumer - Indirect loans	$	74,479	$	71,813	$	32,666	$	21,248	$	11,421	$	23,259	$	0	$	234,886

Consumer - Indirect: Current period gross write-offs	$	33	$	138	$	71	$	35	$	23	$	232	$	0	$	532

Consumer - Direct:
Payment Performance
Performing	$	3,552	$	3,812	$	2,203	$	1,352	$	974	$	11,431	$	366	$	23,690
Nonperforming		0		17		0		65		0		53		0		135
Total consumer - Direct loans	$	3,552	$	3,829	$	2,203	$	1,417	$	974	$	11,484	$	366	$	23,825

Consumer - Direct: Current period gross write-offs	$	11	$	38	$	22	$	51	$	9	$	100	$	0	$	231

Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	60	$	103	$	82	$	278	$	8,636	$	9,159
Nonperforming		0		0		0		0		0		5		0		5
Total consumer - Other loans	$	0	$	0	$	60	$	103	$	82	$	283	$	8,636	$	9,164

Consumer - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	20	$	149	$	169

The Company follows ASU 2016-13 to calculate the allowance for credit losses which requires estimating credit losses over the lifetime of the credits. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of any underlying collateral.

The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions.

The Company uses two methodologies to analyze loan pools. The cohort method and the PD/LGD. Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but are not limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios.

The probability of default portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, or is partially or wholly, charged-off. Typically, a one-year time period is used to assess PD. PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. Loss given default is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or

influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios.

According to accounting standards, an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows insufficient collateral coverage based on a current assessment of the value of the collateral.

In addition, ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the Company must first establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable, and considered by the company’s management as likely to fund over the life of the instrument. At December 31, 2024, the Company had $692 million in unfunded commitments and set aside $1.56 million in anticipated credit losses. At December 31, 2023, the Company had $753 million in unfunded commitments and set aside $1.84 million in anticipated credit losses. The $61 million decrease in unfunded commitments and $278 thousand decrease in the reserve for anticipated credit losses is attributed to existing construction loan projects progressing with advances being made. This reserve is recorded in other liabilities as opposed to the ACL.

The determination of ACL is complex and the Company makes decisions on the effects of factors that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgments as to the facts and circumstances related to particular situations or credits. The ACL was $35.9 million at December 31, 2024 and $34.4 million at December 31, 2023. The $1.4 million increase is attributed to an increase to the specific reserve related to a non-owner occupied commercial real estate relationship, updates to the Company's delay periods that impacted the loss ratios of certain loan pools under the Cohort methodology, and increased Portfolio Composition and Growth qualitative factors due to increasing loan balances. These factors were partially offset by the reduction of the specific reserve related to a loan settlement, reduction of the specific reserve related to a payoff of another individually evaluated relationship, and improved loss rates for certain loan pools under the PD/LGD methodology.

As a result of the Emclaire merger, the Company acquired $740.7 million in loans.

Under ASC Topic 326, when loans are purchased with evidence of more than insignificant deterioration of credit, they are accounted for as purchase credit deteriorated ("PCD"). PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. During 2024, the Company has not acquired any additional PCD loans. The outstanding balance at December 31, 2024 and 2023 and related allowance on PCD loans is as follows (in thousands):