Loans

9 Months Ended

Sep. 30, 2025

(4) Loans

Loan balances were as follows:


	September 30, 2025			December 31, 2024
Commercial & Agriculture	$	302,407		$	328,488
Commercial Real Estate- Owner Occupied		384,176			374,367
Commercial Real Estate- Non-Owner Occupied		1,216,031			1,225,991
Residential Real Estate		842,362			763,869
Real Estate Construction		278,163			305,992
Farm Real Estate		23,713			23,035
Lease Financing Receivables		38,960			46,900
Consumer and Other		10,182			12,588
Total loans		3,095,994			3,081,230
Allowance for credit losses		(40,254	)		(39,669	)
Net loans	$	3,055,740		$	3,041,561

Included in total loans above are net deferred loan fees of $473 and $2,686 at September 30, 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 September 30, 2025 and December 31, 2024, accrued interest receivable on loans totaled $10,080 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 September 30, 2025 and December 31, 2024:


	September 30, 2025			December 31, 2024
Minimum lease payments receivable	$	43,371		$	53,284
Unguaranteed residual assets		857			1,286
Unamortized direct costs		58			—
Unearned income		(5,326	)		(7,670	)
Total net investment in direct financing and sales-type leases	$	38,960		$	46,900