Loans

3 Months Ended

Mar. 31, 2025

(4) Loans

Loan balances were as follows:


	March 31, 2025			December 31, 2024
Commercial & Agriculture	$	330,627		$	328,488
Commercial Real Estate- Owner Occupied		378,095			374,367
Commercial Real Estate- Non-Owner Occupied		1,246,025			1,225,991
Residential Real Estate		773,349			763,869
Real Estate Construction		297,589			305,992
Farm Real Estate		22,399			23,035
Lease Financing Receivables		44,570			46,900
Consumer and Other		11,382			12,588
Total loans		3,104,036			3,081,230
Allowance for credit losses		(40,284	)		(39,669	)
Net loans	$	3,063,752		$	3,041,561

Included in total loans above are net deferred loan fees of $2,144 and $2,686 at March 31, 2025 and December 31, 2024, respectively.

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed in this Note 4 and in Note 5 (Allowance for Credit Losses). As of March 31, 2025 and December 31, 2024, loans accrued interest receivable totaled $10,105 and $9,077, respectively, and is included in the accrued interest receivable line item on the Company's Consolidated Balance Sheet.

Lease financing receivables consist of sales-type and direct financing leases for equipment, with terms typically ranging from two to six years. On direct financing leases, the Company obtains third-party residual value guarantees to reduce its residual asset risk. The net investment in direct financing and sales-type leases was comprised of the following as of March 31, 2025 and December 31, 2024:


	March 31, 2025			December 31, 2024
Minimum lease payments receivable	$	50,417		$	53,284
Unguaranteed residual assets		1,330			1,286
Unamortized direct costs		—			—
Unearned income		(7,177	)		(7,670	)
Total net investment in direct financing and sales-type leases	$	44,570		$	46,900