XML 38 R31.htm IDEA: XBRL DOCUMENT

Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Text Block [Abstract]

Changes in the Allowance for Loan Losses

The following table presents, by portfolio segment, the changes in the ACL for the three and six months ended June 30, 2024 and 2023.

Allowance for credit losses:


For the three months ended June 30, 2024		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	7,737			$	(812	)		$	97			$	(1,674	)		$	5,348
Commercial Real Estate:
Owner Occupied			4,652				—				1				(325	)			4,328
Non-Owner Occupied			12,968				—				5				1,448				14,421
Residential Real Estate			9,074				(52	)			38				356				9,416
Real Estate Construction			3,433				—				8				206				3,647
Farm Real Estate			320				—				—				(59	)			261
Lease Financing Receivables			359				—				1				1,850				2,210
Consumer and Other			306				(23	)			7				(22	)			268
Unallocated			—				—				—				20				20
Total		$	38,849			$	(887	)		$	157			$	1,800			$	39,919


For the three months ended June 30, 2023		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	3,316			$	—			$	42			$	2,182			$	5,540
Commercial Real Estate:
Owner Occupied			5,733				—				—				(202	)			5,531
Non-Owner Occupied			11,760				—				8				(122	)			11,646
Residential Real Estate			5,934				(1	)			32				550				6,515
Real Estate Construction			3,920				—				5				(478	)			3,447
Farm Real Estate			269				—				—				(26	)			243
Lease Financing Receivables			2,907				—				—				(960	)			1,947
Consumer and Other			354				(13	)			19				(88	)			272
Unallocated			3				—				—				5				8
Total		$	34,196			$	(14	)		$	106			$	861			$	35,149


For the six months ended June 30, 2024		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	7,587			$	(1,024	)		$	249			$	(1,464	)		$	5,348
Commercial Real Estate:
Owner Occupied			4,723				—				4				(399	)			4,328
Non-Owner Occupied			12,056				(174	)			10				2,529				14,421
Residential Real Estate			8,489				(65	)			158				834				9,416
Real Estate Construction			3,388				—				12				247				3,647
Farm Real Estate			260				—				—				1				261
Lease Financing Receivables			297				(226	)			1				2,138				2,210
Consumer and Other			341				(49	)			21				(45	)			268
Unallocated			19				—				—				1				20
Total		$	37,160			$	(1,538	)		$	455			$	3,842			$	39,919


For the six months ended June 30, 2023		Beginning balance				CECL Adoption Day 1 Impact				Impact of Adopting ASC 326 - PCD Loans 1				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	3,011			$	429			$	—			$	(140	)		$	48			$	2,192			$	5,540
Commercial Real Estate:
Owner Occupied			4,565				1,075				19				—				0				(128	)			5,531
Non-Owner Occupied			14,138				(2,847	)			—				—				15				340				11,646
Residential Real Estate			3,145				2,762				166				(11	)			54				399				6,515
Real Estate Construction			2,293				1,502				0				—				9				(357	)			3,447
Farm Real Estate			291				(28	)			0				—				—				(20	)			243
Lease Financing Receivables			429				1,743				635				—				—				(860	)			1,947
Consumer and Other			98				201				77				(38	)			27				(93	)			272
Unallocated			541				(541	)			—				—				—				8				8
Total		$	28,511			$	4,296			$	897			$	(189	)		$	153			$	1,481			$	35,149

Credit Exposures by Internally Assigned Grades

Based on the most recent analysis performed, the risk category of loans, by type and year of originations, at June 30, 2024, was as follows:


		Term Loans Amortized Cost Basis by Origination Year
																														Revolving
																														Loans
																										Revolving				Converted
June 30, 2024		2024				2023				2022				2021				2020				Prior				Loans				to Term				Total
Commercial & Agriculture
Pass		$	42,915			$	63,142			$	44,075			$	37,823			$	9,866			$	16,706			$	88,349			$	—			$	302,876
Special Mention			—				791				—				257				1,472				—				1,128				—				3,648
Substandard			—				7,967				127				80				39				381				110				—				8,704
Doubtful			995				507				311				34				80				—				1,344				—				3,271
Total Commercial & Agriculture		$	43,910			$	72,407			$	44,513			$	38,194			$	11,457			$	17,087			$	90,931			$	—			$	318,499
Commercial & Agriculture:
Current-period gross charge-offs		$	500			$	274			$	177			$	40			$	—			$	33			$	—			$	—			$	1,024

Commercial Real Estate - Owner Occupied
Pass		$	15,379			$	42,531			$	78,245			$	66,024			$	54,955			$	106,018			$	6,705			$	—			$	369,857
Special Mention			—				520				1,785				728				506				440				—				—				3,979
Substandard			—				—				219				—				—				3,253				—				—				3,472
Doubtful			—				—				—				—				—				—				—				—				—
Total Commercial Real Estate - Owner Occupied		$	15,379			$	43,051			$	80,249			$	66,752			$	55,461			$	109,711			$	6,705			$	—			$	377,308
Commercial Real Estate - Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial Real Estate - Non-Owner Occupied
Pass		$	32,969			$	200,282			$	281,608			$	186,644			$	130,840			$	313,981			$	27,614			$	—			$	1,173,938
Special Mention			—				580				7,276				6,058				—				9,445				277				—				23,636
Substandard			—				—				—				8,000				—				7,767				—				—				15,767
Doubtful			—				—				—				—				—				—				—				—				—
Total Commercial Real Estate - Non-Owner Occupied		$	32,969			$	200,862			$	288,884			$	200,702			$	130,840			$	331,193			$	27,891			$	—			$	1,213,341
Commercial Real Estate - Non-Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	174			$	—			$	—			$	174

Residential Real Estate
Pass		$	61,940			$	112,700			$	121,324			$	93,301			$	67,788			$	101,751			$	162,216			$	—			$	721,020
Special Mention			—				286				—				214				94				937				—				—				1,531
Substandard			—				332				570				759				329				2,218				1,273				—				5,481
Doubtful			1,181				—				—				—				—				—				—				—				1,181
Total Residential Real Estate		$	63,121			$	113,318			$	121,894			$	94,274			$	68,211			$	104,906			$	163,489			$	—			$	729,213
Residential Real Estate:
Current-period gross charge-offs		$	—			$	—			$	—			$	3			$	—			$	62			$	—			$	—			$	65


																														Revolving
																														Loans
																										Revolving				Converted
June 30, 2024		2024				2023				2022				2021				2020				Prior				Loans				to Term				Total
Real Estate Construction
Pass		$	36,627			$	133,658			$	80,922			$	12,609			$	8,117			$	4,471			$	6,887			$	—			$	283,291
Special Mention			—				—				—				155				—				—				—				—				155
Substandard			—				—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—				—
Total Real Estate Construction		$	36,627			$	133,658			$	80,922			$	12,764			$	8,117			$	4,471			$	6,887			$	—			$	283,446
Real Estate Construction:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Farm Real Estate
Pass		$	626			$	2,320			$	926			$	2,218			$	4,317			$	12,156			$	1,641			$	—			$	24,204
Special Mention			—				—				—				—				—				172				—				—				172
Substandard			—				—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—				—
Total Farm Real Estate		$	626			$	2,320			$	926			$	2,218			$	4,317			$	12,328			$	1,641			$	—			$	24,376
Farm Real Estate:
Current-period charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Lease Financing Receivables
Pass		$	18,152			$	19,617			$	9,320			$	2,320			$	897			$	145			$	—			$	—				50,451
Special Mention			621				—				—				—				—				—				—				—				621
Substandard			271				499				1,195				—				35				4				—				—				2,004
Doubtful			—				231				111				—				15				28				—				—				385
Total Lease Financing Receivables		$	19,044			$	20,347			$	10,626			$	2,320			$	947			$	177			$	—			$	—			$	53,461
Lease Financing Receivables:
Current-period charge-offs		$	—			$	—			$	151			$	12			$	63			$	—			$	—			$	—			$	226

Consumer and Other
Pass		$	1,974			$	4,487			$	3,122			$	2,767			$	1,055			$	364			$	1,565			$	—			$	15,334
Special Mention			—				—				—				—				—				—				1				—				1
Substandard			—				—				—				14				2				1				—				—				17
Doubtful			—				—				—				—				—				—				—				—				—
Total Consumer and Other		$	1,974			$	4,487			$	3,122			$	2,781			$	1,057			$	365			$	1,566			$	—			$	15,352
Consumer and Other:
Current-period charge-offs		$	—			$	4			$	18			$	5			$	4			$	18			$	—			$	—			$	49
Total Loans		$	213,650			$	590,450			$	631,136			$	420,005			$	280,407			$	580,238			$	299,110			$	—			$	3,014,996
Total Loans:
Current-period charge-offs		$	500			$	278			$	346			$	60			$	67			$	287			$	—			$	—			$	1,538

Risk category of loans, by type and year of originations, at December 31, 2023, was as follows:


		Term Loans Amortized Cost Basis by Origination Year
																														Revolving
																														Loans
																										Revolving				Converted
December 31, 2023		2023				2022				2021				2020				2019				Prior				Loans				to Term				Total
Commercial & Agriculture
Pass		$	56,359			$	64,250			$	52,258			$	17,622			$	9,516			$	14,088			$	82,982			$	—			$	297,075
Special Mention			774				—				287				1,690				—				106				169				—				3,026
Substandard			396				86				67				131				271				73				3,668				—				4,692
Doubtful			—				—				—				—				—				—				—				—				—
Total Commercial & Agriculture		$	57,529			$	64,336			$	52,612			$	19,443			$	9,787			$	14,267			$	86,819			$	—			$	304,793
Commercial & Agriculture:
Gross charge-offs		$	—			$	673			$	532			$	—			$	—			$	95			$	—			$	—			$	1,300

Commercial Real Estate - Owner Occupied
Pass		$	36,030			$	82,502			$	67,904			$	56,069			$	29,784			$	92,750			$	5,844			$	—			$	370,883
Special Mention			526				217				739				517				-				188				—				—				2,187
Substandard			—				231				—				—				3,098				922				—				—				4,251
Doubtful			—				—				—				—				—				—				—				—				—
Total Commercial Real Estate - Owner Occupied		$	36,556			$	82,950			$	68,643			$	56,586			$	32,882			$	93,860			$	5,844			$	—			$	377,321
Commercial Real Estate - Owner Occupied:
Gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial Real Estate - Non-Owner Occupied
Pass		$	183,439			$	269,334			$	198,832			$	136,031			$	120,659			$	206,267			$	23,016			$	—			$	1,137,578
Special Mention			—				5,774				6,171				—				-				8,688				277				—				20,910
Substandard			—				—				—				—				122				3,284				—				—				3,406
Doubtful			—				—				—				—				—				—				—				—				—
Total Commercial Real Estate - Non-Owner Occupied		$	183,439			$	275,108			$	205,003			$	136,031			$	120,781			$	218,239			$	23,293			$	—			$	1,161,894
Commercial Real Estate - Non-Owner Occupied:
Gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Residential Real Estate
Pass		$	90,770			$	124,695			$	97,661			$	71,379			$	33,534			$	78,894			$	157,083			$	—			$	654,016
Special Mention			—				—				221				97				—				245				—				—				563
Substandard			186				342				684				82				582				2,063				1,323				—				5,262
Doubtful			—				—				—				—				—				—				—				—				—
Total Residential Real Estate		$	90,956			$	125,037			$	98,566			$	71,558			$	34,116			$	81,202			$	158,406			$	—			$	659,841
Residential Real Estate:
Gross charge-offs		$	—			$	6			$	—			$	—			$	—			$	11			$	—			$	—			$	17


																														Revolving
																														Loans
																										Revolving				Converted
December 31, 2023		2023				2022				2021				2020				2019				Prior				Loans				to Term				Total
Real Estate Construction
Pass		$	108,606			$	105,222			$	20,960			$	6,739			$	2,699			$	2,635			$	9,335			$	—			$	256,196
Special Mention			—				1,226				926				2,019				—				—				—				—				4,171
Substandard			—				—				42				—				—				—				—				—				42
Doubtful			—				—				—				—				—				—				—				—				—
Total Real Estate Construction		$	108,606			$	106,448			$	21,928			$	8,758			$	2,699			$	2,635			$	9,335			$	—			$	260,409
Real Estate Construction:
Gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Farm Real Estate
Pass		$	2,207			$	967			$	2,256			$	4,462			$	789			$	12,528			$	1,292			$	—			$	24,501
Special Mention			—				—				—				—				—				20				—				—				20
Substandard			—				—				—				—				—				250				—				—				250
Doubtful			—				—				—				—				—				—				—				—				—
Total Farm Real Estate		$	2,207			$	967			$	2,256			$	4,462			$	789			$	12,798			$	1,292			$	—			$	24,771
Farm Real Estate:
Gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Lease Financing Receivables
Pass		$	28,177			$	13,924			$	6,620			$	3,678			$	1,725			$	1			$	—			$	—			$	54,125
Special Mention			—				—				—				—				—				—				—				—				—
Substandard			—				8				38				61				231				17				—				—				355
Doubtful			—				139				—				15				8				—				—				—				162
Total Lease Financing Receivables		$	28,177			$	14,071			$	6,658			$	3,754			$	1,964			$	18			$	—			$	—			$	54,642
Lease Financing Receivables:
Gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Consumer and Other
Pass		$	6,510			$	4,135			$	3,615			$	1,578			$	509			$	248			$	1,425			$	—			$	18,020
Special Mention			—				—				—				—				—				—				—				—				—
Substandard			—				2				14				15				—				6				—				—				37
Doubtful			—				—				—				—				—				—				—				—				—
Total Consumer and Other		$	6,510			$	4,137			$	3,629			$	1,593			$	509			$	254			$	1,425			$	—			$	18,057
Consumer and Other:
Gross charge-offs		$	6			$	40			$	40			$	7			$	13			$	3			$	5			$	—			$	114
Total Loans		$	513,980			$	673,054			$	459,295			$	302,185			$	203,527			$	423,273			$	286,414			$	—			$	2,861,728
Total Loans:
Total gross charge-offs		$	6			$	719			$	572			$	7			$	13			$	109			$	5			$	—			$	1,431

Aging Analysis of Past Due Loans

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of June 30, 2024 and December 31, 2023.


June 30, 2024		30-59 Days Past Due				60-89 Days Past Due				90 Days or Greater Past Due				Total Past Due				Current				Total Loans				Past Due 90 Days and Accruing
Commercial & Agriculture		$	919			$	506			$	1,221			$	2,646			$	315,853			$	318,499			$	—
Commercial Real Estate:
Owner Occupied			105				—				—				105				377,203				377,308				—
Non-Owner Occupied			195				—				2,898				3,093				1,210,248				1,213,341				—
Residential Real Estate			974				1,408				1,705				4,087				725,126				729,213				—
Real Estate Construction			194				—				—				194				283,252				283,446				—
Farm Real Estate			—				—				—				—				24,376				24,376				—
Lease Financing Receivables			1,623				1,503				200				3,326				50,135				53,461				74
Consumer and Other			69				29				2				100				15,252				15,352				—
Total		$	4,079			$	3,446			$	6,026			$	13,551			$	3,001,445			$	3,014,996			$	74


December 31, 2023		30-59 Days Past Due				60-89 Days Past Due				90 Days or Greater Past Due				Total Past Due				Current				Total Loans				Past Due 90 Days and Accruing
Commercial & Agriculture		$	1,228			$	471			$	1,999			$	3,698			$	301,095			$	304,793			$	73
Commercial Real Estate:
Owner Occupied			4				—				123				127				377,194				377,321				—
Non-Owner Occupied			—				—				—				—				1,161,894				1,161,894				—
Residential Real Estate			4,581				1,180				1,642				7,403				652,438				659,841				—
Real Estate Construction			—				—				—				—				260,409				260,409				—
Farm Real Estate			—				—				—				—				24,771				24,771				—
Lease Financing Receivables			950				410				373				1,733				52,909				54,642				—
Consumer and Other			172				23				2				197				17,860				18,057				—
Total		$	6,935			$	2,084			$	4,139			$	13,158			$	2,848,570			$	2,861,728			$	73

Summary of Nonaccrual Loans Excluding PCI Loans

The following table presents loans on nonaccrual status as of June 30, 2024.


June 30, 2024		Nonaccrual loans with a related ACL				Nonaccrual loans without a related ACL				Total Nonaccrual loans
Commercial & Agriculture		$	1,485			$	2,641			$	4,126
Commercial Real Estate:
Owner Occupied			219				138				357
Non-Owner Occupied			3,006				—				3,006
Residential Real Estate			—				6,075				6,075
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			801				823				1,624
Consumer and Other			—				21				21
Total		$	5,511			$	9,698			$	15,209

The following table presents loans on nonaccrual status as of December 31, 2023.


December 31, 2023		Nonaccrual loans with a related ACL				Nonaccrual loans without a related ACL				Total Nonaccrual loans
Commercial & Agriculture		$	914			$	4,891			$	5,805
Commercial Real Estate:
Owner Occupied			269				3				272
Non-Owner Occupied			—				1,167				1,167
Residential Real Estate			—				4,633				4,633
Real Estate Construction			—				41				41
Farm Real Estate			—				—				—
Lease Financing Receivables			15				492				507
Consumer and Other			—				42				42
Total		$	1,198			$	11,269			$	12,467

Schedule of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated Expected Credit Losses and Related Allowance for Credit Losses

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans as of June 30, 2024 and December 31, 2023.


June 30, 2024		Real Estate				Other				Allowance for Credit Losses
Commercial & Agriculture		$	—			$	10,930			$	1,075
Commercial Real Estate:
Owner Occupied			—				8,219				24
Non-Owner Occupied			—				3,006				1,052
Residential Real Estate			1,329				—				—
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			—				1,512				453
Consumer and Other			—				—				—
Total		$	1,329			$	23,667			$	2,604



December 31, 2023		Real Estate				Other				Allowance for Credit Losses
Commercial & Agriculture		$	—			$	4,674			$	945
Commercial Real Estate:
Owner Occupied			308				—				37
Non-Owner Occupied			1,167				—				268
Residential Real Estate			149				—				—
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			—				61				15
Consumer and Other			—				—				—
Total		$	1,624			$	4,735			$	1,265

Schedule Of Allowance For Credit Losses On Off-balance Sheet Credit Exposures

The following table lists the allowance for credit losses on off-balance sheet credit exposures as of June 30, 2024:


		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2024			2023				2024			2023
Beginning of Period		$	3,851			3,587			$	3,901		—
CECL adoption adjustments			—			—				—			3,386
Provision			(145	)		264				(195	)		465
End of Period		$	3,706		$	3,851			$	3,706			3,851