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Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2025 and 2024.

Allowance for credit losses:


For the three months ended September 30, 2025		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	6,057			$	(249	)		$	39			$	531			$	6,378
Commercial Real Estate:
Owner Occupied			4,612				—				—				74				4,686
Non-Owner Occupied			11,321				—				—				(1,189	)			10,132
Residential Real Estate			13,075				(14	)			35				890				13,986
Real Estate Construction			3,695				—				—				(141	)			3,554
Farm Real Estate			305				—				—				(4	)			301
Lease Financing Receivables			1,214				(395	)			—				247				1,066
Consumer and Other			176				(4	)			9				(30	)			151
Total		$	40,455			$	(662	)		$	83			$	378			$	40,254


For the nine months ended September 30, 2025		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	6,586			$	(684	)		$	375			$	101			$	6,378
Commercial Real Estate:
Owner Occupied			4,327				—				—				359				4,686
Non-Owner Occupied			11,404				(1,350	)			3				75				10,132
Residential Real Estate			11,866				(130	)			76				2,174				13,986
Real Estate Construction			3,708				—				—				(154	)			3,554
Farm Real Estate			226				—				—				75				301
Lease Financing Receivables			1,361				(546	)			43				208				1,066
Consumer and Other			191				(20	)			21				(41	)			151
Total		$	39,669			$	(2,730	)		$	518			$	2,797			$	40,254


For the three months ended September 30, 2024		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	5,348			$	—			$	15			$	(284	)		$	5,079
Commercial Real Estate:
Owner Occupied			4,328				—				—				37				4,365
Non-Owner Occupied			14,421				—				—				126				14,547
Residential Real Estate			9,416				(1	)			19				1,288				10,722
Real Estate Construction			3,647				—				—				69				3,716
Farm Real Estate			261				—				—				(40	)			221
Lease Financing Receivables			2,210				(15	)			—				166				2,361
Consumer and Other			268				(26	)			11				2				255
Unallocated			20				—				—				(18	)			2
Total		$	39,919			$	(42	)		$	45			$	1,346			$	41,268


For the nine months ended September 30, 2024		Beginning balance				Charge-offs				Recoveries				Provision				Ending Balance
Commercial & Agriculture		$	7,587			$	(1,079	)		$	263			$	(1,692	)		$	5,079
Commercial Real Estate:
Owner Occupied			4,723				—				0				(358	)			4,365
Non-Owner Occupied			12,056				(174	)			12				2,653				14,547
Residential Real Estate			8,489				(67	)			178				2,122				10,722
Real Estate Construction			3,388				—				12				316				3,716
Farm Real Estate			260				—				—				(39	)			221
Lease Financing Receivables			297				(186	)			1				2,249				2,361
Consumer and Other			341				(74	)			34				(46	)			255
Unallocated			19				—				—				(17	)			2
Total		$	37,160			$	(1,580	)		$	500			$	5,188			$	41,268

Credit Exposures by Internally Assigned Grades

Based on the most recent analysis performed, the risk category of loans at September 30, 2025, and year-to-date gross charge-offs as of September 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		$	47,595			$	52,702			$	38,622			$	24,214			$	18,250			$	4,575			$	87,114			$	273,072
Special Mention			500				—				669				1,291				2,720				944				8,586				14,710
Substandard			331				4,766				1,786				700				11				—				5,523				13,117
Doubtful			—				—				—				—				—				—				1,508				1,508
Total Commercial & Agriculture		$	48,426			$	57,467			$	41,077			$	26,205			$	20,980			$	5,520			$	102,732			$	302,407
Commercial & Agriculture:
Current-period gross charge-offs		$	—			$	—			$	541			$	128			$	15			$	—			$	—			$	684

Commercial Real Estate - Owner Occupied
Pass		$	29,936			$	34,986			$	42,194			$	69,701			$	55,072			$	126,680			$	7,940			$	366,507
Special Mention			345				—				1,520				202				4,680				1,928				72				8,749
Substandard			—				—				1,555				2,965				—				3,020				1,380				8,920
Doubtful			—				—				—				—				—				—				—				—
Total Commercial Real Estate - Owner Occupied		$	30,281			$	34,986			$	45,269			$	72,868			$	59,751			$	131,629			$	9,392			$	384,176
Commercial Real Estate - Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial Real Estate - Non-Owner Occupied
Pass		$	31,409			$	71,542			$	254,600			$	295,210			$	150,949			$	359,624			$	25,134			$	1,188,468
Special Mention			4,615				—				—				1,532				7,922				-				—				14,069
Substandard			12,354				—				—				—				—				654				—				13,009
Doubtful			484				—				—				—				—				—				—				484
Total Commercial Real Estate - Non-Owner Occupied		$	48,862			$	71,542			$	254,600			$	296,741			$	158,871			$	360,279			$	25,134			$	1,216,031
Commercial Real Estate - Non-Owner Occupied:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	800			$	550			$	—			$	1,350

Residential Real Estate
Pass		$	54,508			$	138,916			$	121,061			$	106,709			$	84,730			$	139,042			$	189,197			$	834,163
Special Mention			—				59				—				—				557				263				350				1,230
Substandard			—				—				328				1,392				629				2,088				1,052				5,488
Doubtful			—				1,020				—				—				—				—				461				1,481
Total Residential Real Estate		$	54,508			$	139,995			$	121,389			$	108,101			$	85,917			$	141,393			$	191,060			$	842,362
Residential Real Estate:
Current-period gross charge-offs		$	—			$	—			$	—			$	40			$	39			$	51			$	—			$	130




																										Revolving
		2025				2024				2023				2022				2021				Prior				Loans				Total
Real Estate Construction
Pass		$	81,024			$	66,273			$	75,223			$	27,513			$	4,474			$	7,918			$	10,023			$	272,449
Special Mention			—				—				—				5,000				—				—				—				5,000
Substandard			—				—				714				—				—				—				—				714
Doubtful			—				—				—				—				—				—				—				—
Total Real Estate Construction		$	81,024			$	66,273			$	75,937			$	32,513			$	4,474			$	7,918			$	10,023			$	278,163
Real Estate Construction:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Farm Real Estate
Pass		$	847			$	348			$	2,078			$	462			$	1,932			$	14,219			$	1,954			$	21,840
Special Mention			—				—				—				368				—				158				905				1,431
Substandard			—				—				—				—				42				400				—				443
Doubtful			—				—				—				—				—				—				—				—
Total Farm Real Estate		$	847			$	348			$	2,078			$	830			$	1,975			$	14,778			$	2,859			$	23,713
Farm Real Estate:
Current-period charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Lease Financing Receivables
Pass		$	7,949			$	11,671			$	10,532			$	3,958			$	729			$	45			$	—				34,883
Special Mention			—				275				1,388				66				—				—				—				1,729
Substandard			47				1,467				384				451				—				—				—				2,349
Doubtful			—				—				-				—				—				—				—				—
Total Lease Financing Receivables		$	7,996			$	13,413			$	12,303			$	4,475			$	729			$	45			$	—			$	38,960
Lease Financing Receivables:
Current-period charge-offs		$	—			$	—			$	110			$	435			$	—			$	1			$	—			$	546

Consumer and Other
Pass		$	2,244			$	1,447			$	2,599			$	1,360			$	799			$	199			$	1,510			$	10,158
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				17				7				—				—				24
Doubtful			—				—				—				—				—				—				—				—
Total Consumer and Other		$	2,244			$	1,447			$	2,599			$	1,377			$	806			$	199			$	1,510			$	10,182
Consumer and Other:
Current-period charge-offs		$	—			$	—			$	5			$	5			$	4			$	6			$	—			$	20
Total Loans		$	274,188			$	385,471			$	555,251			$	543,109			$	333,504			$	661,761			$	342,710			$	3,095,994
Total Loans:
Current-period charge-offs		$	—			$	—			$	656			$	608			$	858			$	608			$	—			$	2,730

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 September 30, 2025 and December 31, 2024.


September 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		$	112			$	48			$	429			$	589			$	301,818				302,407			$	85
Commercial Real Estate:
Owner Occupied			—				—				7				7				384,169				384,176				—
Non-Owner Occupied			—				654				484				1,138				1,214,893				1,216,031				—
Residential Real Estate			538				1,391				2,000				3,929				838,433				842,362				—
Real Estate Construction			—				—				—				—				278,163				278,163				—
Farm Real Estate			—				—				400				400				23,313				23,713				—
Lease Financing Receivables							327				449				776				38,184				38,960				92
Consumer and Other			80				15				17				112				10,070				10,182				—
Total		$	730			$	2,435			$	3,786			$	6,951			$	3,089,043			$	3,095,994			$	177


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 September 30, 2025.


September 30, 2025		Nonaccrual loans with a related ACL				Nonaccrual loans without a related ACL				Total Nonaccrual loans
Commercial & Agriculture		$	7,719			$	3,166			$	10,885
Commercial Real Estate:
Owner Occupied			7				2,840				2,847
Non-Owner Occupied			1,194				—				1,194
Residential Real Estate			5,040				1,482				6,522
Real Estate Construction			—				—				—
Farm Real Estate			401				—				401
Lease Financing Receivables			807				—				807
Consumer and Other			24				—				24
Total		$	15,192			$	7,488			$	22,680

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 September 30, 2025 and December 31, 2024.


September 30, 2025		Real Estate				Other				Allowance for Credit Losses
Commercial & Agriculture		$	—			$	2,760			$	584
Commercial Real Estate:
Owner Occupied			2,840				—				—
Non-Owner Occupied			484				—				—
Residential Real Estate			1,481				—				—
Real Estate Construction			—				—				—
Farm Real Estate			—				—				—
Lease Financing Receivables			—				—				—
Consumer and Other			—				—				—
Total		$	4,805			$	2,760			$	584



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 nine months ended September 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
		September 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		$	87				0.03	%		$	—				—
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		$	87							$	—

The following table presents the payment status of the loans that were modified to borrowers experiencing financial difficulties in the last twelve months ended September 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		$	—			$	—			$	—			$	—		$	7,622		$	7,610
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		$	—			$	—			$	484			$	484		$	7,622		$	8,094

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 nine months ended September 30, 2025 and September 30, 2024:


		Three Months Ended
		September 30,
		2025			2024
Beginning of Period		$	3,553			3,706
Provision for (recovery of)			(178	)		(325	)
End of Period		$	3,375		$	3,381


		Nine months Ended
		September 30,
		2025			2024
Beginning of Period		$	3,380			3,901
Provision for (recovery of)			(5	)		(520	)
End of Period		$	3,375		$	3,381