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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2025

Text Block [Abstract]

Changes in the Allowance for Loan Losses

The following table presents, by portfolio segment, the changes in the allowance for credit losses ("ACL") for the three and six months ended June 30, 2025 and 2024.

Allowance for credit losses:


For the three months ended June 30, 2025		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	6,194			$	(363	)		$	44			$	182			$	6,057
Commercial Real Estate:
Owner Occupied			4,466				—				—				146				4,612
Non-Owner Occupied			11,412				(550	)			3				456				11,321
Residential Real Estate			12,455				(115	)			23				712				13,075
Real Estate Construction			4,017				—				—				(322	)			3,695
Farm Real Estate			264				—				—				41				305
Lease Financing Receivables			1,277				(62	)			17				(18	)			1,214
Consumer and Other			199				(2	)			5				(26	)			176
Total		$	40,284			$	(1,092	)		$	92			$	1,171			$	40,455


For the six months ended June 30, 2025		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	6,586			$	(435	)		$	335			$	(429	)		$	6,057
Commercial Real Estate:
Owner Occupied			4,327				—				—				285				4,612
Non-Owner Occupied			11,404				(1,350	)			3				1,264				11,321
Residential Real Estate			11,866				(115	)			42				1,282				13,075
Real Estate Construction			3,708				—				—				(13	)			3,695
Farm Real Estate			226				—				—				79				305
Lease Financing Receivables			1,361				(152	)			42				(37	)			1,214
Consumer and Other			191				(16	)			13				(12	)			176
Total		$	39,669			$	(2,068	)		$	435			$	2,419			$	40,455


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 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

Credit Exposures by Internally Assigned Grades

Based on the most recent analysis performed, the risk category of loans at June 30, 2025, and year-to-date gross charge-offs as of June 30, 2025, by type and year of originations, was as follows:


		Term Loans Amortized Cost Basis by Origination Year


																										Revolving
		2025				2024				2023				2022				2021				Prior				Loans				Total
Commercial & Agriculture
Pass		$	31,261			$	65,853			$	44,952			$	28,968			$	24,654			$	17,364			$	96,587			$	309,639
Special Mention			500				—				887				1,419				2,996				1,055				8,642				15,499
Substandard			140				4,795				2,312				783				13				—				3,863				11,906
Doubtful			—				—				—				—				—				—				1,554				1,554
Total Commercial & Agriculture		$	31,901			$	70,648			$	48,151			$	31,170			$	27,663			$	18,419			$	110,646			$	338,598
Commercial & Agriculture:
Current-period gross charge-offs		$	—			$	—			$	383			$	42			$	10			$	—			$	—			$	435

Commercial Real Estate - Owner Occupied
Pass		$	16,950			$	33,880			$	42,135			$	70,986			$	56,113			$	132,537			$	7,825			$	360,426
Special Mention			—				—				1,834				1,740				4,731				2,157				—				10,462
Substandard			—				—				1,595				1,462				—				3,119				1,184				7,360
Doubtful			—				—				—				—				—				—				—				—
Total Commercial Real Estate - Owner Occupied		$	16,950			$	33,880			$	45,564			$	74,188			$	60,844			$	137,813			$	9,009			$	378,248
Commercial Real Estate - Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial Real Estate - Non-Owner Occupied
Pass		$	25,389			$	73,854			$	259,495			$	322,316			$	152,920			$	371,860			$	29,326			$	1,235,160
Special Mention			—				—				—				1,543				9,214				11,022				—				21,779
Substandard			—				—				—				—				—				6,189				—				6,189
Doubtful			—				—				—				—				—				484				—				484
Total Commercial Real Estate - Non-Owner Occupied		$	25,389			$	73,854			$	259,495			$	323,859			$	162,134			$	389,555			$	29,326			$	1,263,612
Commercial Real Estate - Non-Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	800			$	550			$	—			$	1,350

Residential Real Estate
Pass		$	35,927			$	126,116			$	123,579			$	108,458			$	86,527			$	144,592			$	181,494			$	806,693
Special Mention			—				64				—				—				564				319				349				1,296
Substandard			—				—				212				1,611				650				2,325				997				5,795
Doubtful			—				1,056				—				—				—				—				568				1,624
Total Residential Real Estate		$	35,927			$	127,236			$	123,791			$	110,069			$	87,741			$	147,236			$	183,408			$	815,408
Residential Real Estate:
Current-period gross charge-offs		$	—			$	—			$	—			$	40			$	39			$	36			$	—			$	115




																										Revolving
		2025				2024				2023				2022				2021				Prior				Loans				Total
Real Estate Construction
Pass		$	42,809			$	81,808			$	97,971			$	27,290			$	4,478			$	8,075			$	9,414			$	271,845
Special Mention			—				—				—				5,000				51				—				—				5,051
Substandard			—				—				747				—				—				—				—				747
Doubtful			—				—				—				—				—				—				—				—
Total Real Estate Construction		$	42,809			$	81,808			$	98,718			$	32,290			$	4,529			$	8,075			$	9,414			$	277,643
Real Estate Construction:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Farm Real Estate
Pass		$	1,393			$	372			$	2,089			$	477			$	2,058			$	14,838			$	1,611			$	22,838
Special Mention			—				—				—				368				—				158				502				1,028
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total Farm Real Estate		$	1,393			$	372			$	2,089			$	845			$	2,058			$	14,996			$	2,113			$	23,866
Farm Real Estate:
Current-period charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Lease Financing Receivables
Pass		$	7,278			$	12,881			$	13,423			$	4,800			$	1,013			$	298			$	—				39,693
Special Mention			—				605				—				75				—				—				—				680
Substandard			51				1,257				535				538				—				4				—				2,385
Doubtful			—				—				-				—				—				—				—				—
Total Lease Financing Receivables		$	7,329			$	14,743			$	13,958			$	5,413			$	1,013			$	302			$	—			$	42,758
Lease Financing Receivables:
Current-period charge-offs		$	—			$	—			$	—			$	152			$	—			$	—			$	—			$	152

Consumer and Other
Pass		$	1,455			$	1,624			$	2,903			$	1,694			$	1,255			$	548			$	1,482			$	10,961
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				17				13				—				—				30
Doubtful			—				—				—				—				—				—				—				—
Total Consumer and Other		$	1,455			$	1,624			$	2,903			$	1,711			$	1,268			$	548			$	1,482			$	10,991
Consumer and Other:
Current-period charge-offs		$	—			$	—			$	5			$	5			$	5			$	1			$	—			$	16
Total Loans		$	163,153			$	404,165			$	594,669			$	579,545			$	347,250			$	716,944			$	345,398			$	3,151,124
Total Loans:
Current-period charge-offs		$	—			$	—			$	388			$	239			$	854			$	587			$	—			$	2,068

The risk category of loans at December 31, 2024, and year-to-date gross charge-offs as of December 31, 2024, by type and year of originations, was as follows:


		Term Loans Amortized Cost Basis by Origination Year


																										Revolving
		2024				2023				2022				2021				2020				Prior				Loans				Total
Commercial & Agriculture
Pass		$	74,397			$	55,540			$	37,078			$	33,164			$	7,477			$	13,449			$	86,804			$	307,909
Special Mention			255				1,225				511				32				1,286				—				4,173				7,482
Substandard			5,629				1,942				413				89				3				332				3,004				11,412
Doubtful			—				—				—				—				—				—				1,685				1,685
Total Commercial & Agriculture		$	80,281			$	58,707			$	38,002			$	33,285			$	8,766			$	13,781			$	95,666			$	328,488
Commercial & Agriculture:
Current-period gross charge-offs		$	1,520			$	339			$	204			$	53			$	48			$	33			$	—			$	2,197

Commercial Real Estate - Owner Occupied
Pass		$	26,677			$	40,344			$	72,901			$	62,663			$	52,478			$	97,293			$	8,358			$	360,714
Special Mention			—				3,525				4,987				855				383				302				178				10,230
Substandard			—				—				—				—				—				3,189				234				3,423
Doubtful			—				—				—				—				—				—				—				—
Total Commercial Real Estate - Owner Occupied		$	26,677			$	43,869			$	77,888			$	63,518			$	52,861			$	100,784			$	8,770			$	374,367
Commercial Real Estate - Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial Real Estate - Non-Owner Occupied
Pass		$	59,635			$	227,608			$	299,079			$	170,534			$	121,313			$	280,870			$	29,219			$	1,188,258
Special Mention			—				—				7,166				—				—				10,533				—				17,699
Substandard			—				—				—				8,000				—				12,034				—				20,034
Doubtful			—				—				—				—				—				—				—				—
Total Commercial Real Estate - Non-Owner Occupied		$	59,635			$	227,608			$	306,245			$	178,534			$	121,313			$	303,437			$	29,219			$	1,225,991
Commercial Real Estate - Non-Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	672			$	—			$	672

Residential Real Estate
Pass		$	97,552			$	127,090			$	113,877			$	90,198			$	64,528			$	91,785			$	168,840			$	753,870
Special Mention			71				286				—				576				92				481				426				1,932
Substandard			—				316				967				859				675				2,655				1,180				6,652
Doubtful			1,115				—				—				—				—				—				300				1,415
Total Residential Real Estate		$	98,738			$	127,692			$	114,844			$	91,633			$	65,295			$	94,921			$	170,746			$	763,869
Residential Real Estate:
Current-period gross charge-offs		$	2			$	—			$	—			$	3			$	—			$	78			$	—			$	83




																										Revolving
		2024				2023				2022				2021				2020				Prior				Loans				Total
Real Estate Construction
Pass		$	90,417			$	133,695			$	52,564			$	10,348			$	6,841			$	2,369			$	9,449			$	305,683
Special Mention			154				—				—				155				—				—				—				309
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total Real Estate Construction		$	90,571			$	133,695			$	52,564			$	10,503			$	6,841			$	2,369			$	9,449			$	305,992
Real Estate Construction:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Farm Real Estate
Pass		$	571			$	2,125			$	495			$	2,099			$	4,122			$	11,525			$	1,490			$	22,427
Special Mention			—				—				388				—				—				158				62				608
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total Farm Real Estate		$	571			$	2,125			$	883			$	2,099			$	4,122			$	11,683			$	1,552			$	23,035
Farm Real Estate:
Current-period charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Lease Financing Receivables
Pass		$	18,783			$	16,516			$	6,955			$	1,563			$	426			$	65			$	—			$	44,308
Special Mention			1,107				—				—				—				—				—				—				1,107
Substandard			—				466				1,000				—				19				—				—				1,485
Doubtful			—				—				—				—				—				—				—				-
Total Lease Financing Receivables		$	19,890			$	16,982			$	7,955			$	1,563			$	445			$	65			$	—			$	46,900
Lease Financing Receivables:
Current-period charge-offs		$	—			$	199			$	607			$	12			$	63			$	—			$	—			$	881

Consumer and Other
Pass		$	2,521			$	3,717			$	2,329			$	1,787			$	677			$	206			$	1,339			$	12,576
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				3				—				9				—				—				—				12
Doubtful			—				—				—				—				—				—				—				—
Total Consumer and Other		$	2,521			$	3,720			$	2,329			$	1,796			$	677			$	206			$	1,339			$	12,588
Consumer and Other:
Current-period charge-offs		$	25			$	7			$	21			$	5			$	6			$	18			$	—			$	82
Total Loans		$	378,884			$	614,398			$	600,710			$	382,931			$	260,320			$	527,246			$	316,741			$	3,081,230
Total Loans:
Current-period charge-offs		$	1,547			$	545			$	832			$	73			$	117			$	801			$	—			$	3,915

Aging Analysis of Past Due Loans

The following tables include an aging analysis of the recorded investment in past due loans outstanding as of June 30, 2025 and December 31, 2024.


June 30, 2025		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		$	114			$	—			$	1,639			$	1,753			$	336,845				338,598			$	98
Commercial Real Estate:
Owner Occupied			1,231				—				7				1,238				377,010				378,248				—
Non-Owner Occupied			—				—				484				484				1,263,128				1,263,612				—
Residential Real Estate			426				1,262				1,602				3,290				812,118				815,408				—
Real Estate Construction			—				—				—				—				277,643				277,643				—
Farm Real Estate			—				—				—				—				23,866				23,866				—
Lease Financing Receivables			255				—				924				1,179				41,579				42,758				125
Consumer and Other			69				—				20				89				10,902				10,991				—
Total		$	2,095			$	1,262			$	4,676			$	8,033			$	3,143,091			$	3,151,124			$	223


December 31, 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		$	825			$	114			$	1,374			$	2,313			$	326,175			$	328,488			$	—
Commercial Real Estate:
Owner Occupied			—				—				225				225				374,142				374,367				225
Non-Owner Occupied			69				8,000				2,514				10,583				1,215,408				1,225,991				—
Residential Real Estate			5,504				1,634				2,273				9,411				754,458				763,869				—
Real Estate Construction			—				—				—				—				305,992				305,992				—
Farm Real Estate			—				—				—				—				23,035				23,035				—
Lease Financing Receivables			575				351				909				1,835				45,065				46,900				—
Consumer and Other			181				37				3				221				12,367				12,588				—
Total		$	7,154			$	10,136			$	7,298			$	24,588			$	3,056,642			$	3,081,230			$	225

Summary of Nonaccrual Loans Excluding PCI Loans

The following table presents loans on nonaccrual status as of June 30, 2025.


June 30, 2025		Nonaccrual loans with a related ACL				Nonaccrual loans without a related ACL				Total Nonaccrual loans
Commercial & Agriculture		$	9,986			$	1,937			$	11,923
Commercial Real Estate:
Owner Occupied			7				2,903				2,910
Non-Owner Occupied			545				—				545
Residential Real Estate			4,911				1,624				6,535
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			799				—				799
Consumer and Other			30				—				30
Total		$	16,278			$	6,464			$	22,742

The following table presents loans on nonaccrual status as of December 31, 2024.


December 31, 2024		Nonaccrual loans with a related ACL				Nonaccrual loans without a related ACL				Total Nonaccrual loans
Commercial & Agriculture		$	8,901			$	3,370			$	12,271
Commercial Real Estate:
Owner Occupied			36				—				36
Non-Owner Occupied			2,514				8,000				10,514
Residential Real Estate			4,745				2,131				6,876
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			638				600				1,238
Consumer and Other			15				—				15
Total		$	16,849			$	14,101			$	30,950

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, 2025 and December 31, 2024.


June 30, 2025		Real Estate				Other				Allowance for Credit Losses
Commercial & Agriculture		$	—			$	3,242			$	308
Commercial Real Estate:
Owner Occupied			2,903				—				—
Non-Owner Occupied			484				—				—
Residential Real Estate			1,624				—				—
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			—				—				—
Consumer and Other			—				—				—
Total		$	5,011			$	3,242			$	308



December 31, 2024		Real Estate				Other				Allowance for Credit Losses
Commercial & Agriculture		$	—			$	8,179			$	1,679
Commercial Real Estate:
Owner Occupied			—				—				—
Non-Owner Occupied			10,514				—				674
Residential Real Estate			2,131				—				—
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			—				665				6
Consumer and Other			—				—				—
Total		$	12,645			$	8,844			$	2,359

Schedule of Loans Modified to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of modification granted during the six months ended June 30, 2025. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of loan category is also presented below:


		Loans Modifications Made to Borrowers Experiencing Financial Difficulty
		June 30, 2025
		(Dollars in Thousands)
		Term Extension								Payment Deferral
Loan Type		Amortized Cost Basis				Percent of total loans by category				Amortized Cost Basis				Percent of total loans by category
Commercial & Agriculture		$	7				0.00	%		$	—				—
Commercial Real Estate:
Owner Occupied			—				—				—				—
Non-Owner Occupied			—				—				—				—
Residential Real Estate			—				—				—				—
Real Estate Construction			—				—				—				—
Farm Real Estate			—				—				—				—
Leasing Financing Receivables			—				—				—				—
Consumer and Other			—				—				—				—
Total Loan Modifications		$	7							$	—

The following table presents the payment status of the loans that were modified to borrowers experiencing financial difficulties in the last twelve months ended June 30, 2025.


		30-59 Days Past Due				60-89 Days Past Due				90 Days or Greater Past Due				Total Past Due			Current			Non-Accrual
Commercial & Agriculture		$	—			$	—			$	7			$	7		$	7,559		$	7,566
Commercial Real Estate:
Owner Occupied			—				—				—				—			—			—
Non-Owner Occupied			—				—				484				484			—			484
Residential Real Estate			—				—				—				—			—			—
Real Estate Construction			—				—				—				—			—			—
Farm Real Estate			—				—				—				—			—			—
Lease Financing Receivables			—				—				—				—			—			—
Consumer and Other			—				—				—				—			—			—
Total		$	—			$	—			$	491			$	491		$	7,559		$	8,050

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 the three and six months ended June 30, 2025 and June 30, 2024:


		Three Months Ended
		June 30,
		2025			2024
Beginning of Period		$	3,699			3,851
Provision for (recovery of)			(146	)		(145	)
End of Period		$	3,553		$	3,706


		Six months Ended
		June 30,
		2025			2024
Beginning of Period		$	3,380			3,901
Provision for (recovery of)			173			(195	)
End of Period		$	3,553		$	3,706