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Loans and Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
Loans
Major classifications within the Company’s loans held for investment portfolio at September 30, 2025 and December 31, 2024 were as follows:
(dollars in thousands)September 30, 2025December 31, 2024
Commercial, financial, and agricultural$227,309 $202,329 
Real estate construction − residential35,86932,046
Real estate construction − commercial77,46680,435
Real estate mortgage − residential376,508361,735
Real estate mortgage − commercial786,498775,594
Installment and other consumer10,35214,021
Total loans held for investment$1,514,002 $1,466,160 
The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the Missouri communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Accrued interest on loans totaled $6.8 million and $6.5 million at September 30, 2025 and December 31, 2024, respectively, and is included in accrued interest receivable and other assets on the Company's consolidated balance sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable. At September 30, 2025, loans of $742.0 million were pledged to the Federal Home Loan Bank (“FHLB”) as collateral for borrowings and letters of credit.
Allowance for Credit Losses
The allowance for credit losses is measured using a lifetime expected loss model that incorporates relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. The allowance for credit losses is a valuation account that is deducted from loans amortized cost basis to present the net amount expected to be collected on the instrument. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Loans are charged off against the allowance for credit losses when management believes the balance has become uncollectible.
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures
The Company maintains a separate allowance for credit losses for off-balance-sheet credit exposures, including unfunded loan commitments, unless the associated obligation is unconditionally cancellable by the Company. This allowance is included in other liabilities on the consolidated balance sheets with associated expense recognized as a component of the provision for credit losses on the consolidated statements of income. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded. The allowance for credit losses on unfunded commitments totaled $1.0 million and $0.9 million at September 30, 2025 and December 31, 2024, respectively.
Sensitivity in the Allowance for Credit Loss Model
The allowance for credit losses is an estimate that requires significant judgment including projections of the macroeconomic environment. The forecasted macroeconomic environment continuously changes, which can cause fluctuations in estimated expected losses.
The following tables illustrate the changes in the allowance for credit losses on loans by portfolio segment:
Three Months Ended September 30, 2025
(dollars in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$2,144 $328 $1,484 $4,917 $12,392 $112 $193 $21,570 
Charge-offs5 — — 1 4 104 — 114 
Recoveries30 — — 14 — 29 — 73 
Provision for (release of) credit losses252 93 18 186 (261)51 36 375 
Balance at end of period$2,421 $421 $1,502 $5,116 $12,127 $88 $229 $21,904 
Nine Months Ended September 30, 2025
(dollars in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$1,560 $578 $2,221 $5,310 $12,305 $138 $(68)$22,044 
Charge-offs39 — — 15 40 303 397 
Recoveries132 — — 33 58 100 323 
Provision for (release of) credit losses768 (157)(719)(212)(196)153 297 (66)
Balance at end of period$2,421 $421 $1,502 $5,116 $12,127 $88 $229 $21,904 
Three Months Ended September 30, 2024
(dollars in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$1,621 $598 $1,477 $5,213 $12,908 $163 $— $21,980 
Charge-offs270 — — — 343 66 — 679 
Recoveries16 — — 7 — 20 — 43 
Provision for (release of) credit losses263 (12)347 62 69 29 (165)593 
Balance at end of period$1,630 $586 $1,824 $5,282 $12,634 $146 $(165)$21,937 
Nine Months Ended September 30, 2024
(dollars in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$3,208 $1,043 $3,273 $5,264 $10,537 $232 $187 $23,744 
Charge-offs2,158 — — 23 433 196 — 2,810 
Recoveries36 — — 12 — 80 — 128 
Provision for (release of) credit losses544 (457)(1,449)29 2,530 30 (352)875 
Balance at end of period$1,630 $586 $1,824 $5,282 $12,634 $146 $(165)$21,937 
Collateral-Dependent loans
Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Under the CECL methodology, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance on the fair value of collateral.
The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and the loan’s amortized cost. If the fair value of the collateral exceeds the loan’s amortized cost, no allowance is necessary. The Company’s policy is to obtain current appraisals on any significant pieces of collateral. Higher discounts are applied in determining fair value for real estate collateral in industries that are undergoing significant stress, or for properties that are specialized use or have limited marketability.
There have been no significant changes to the types of collateral securing the Company's collateral dependent loans since December 31, 2024.

The amortized cost of collateral-dependent loans by class as of September 30, 2025 and December 31, 2024 was as follows:
Collateral Type
(dollars in thousands)Real EstateOtherAllowance Allocated
September 30, 2025
Commercial, financial, and agricultural$— $1,812 $587 
Real estate mortgage − residential453 — 52 
Real estate mortgage − commercial65 — — 
Total$518 $1,812 $639 
December 31, 2024
Commercial, financial, and agricultural$— $766 $125 
Real estate construction − residential454 — 194 
Real estate mortgage − commercial65 — — 
Total$519 $766 $319 
Credit Quality
The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment.
•Pass - loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral.
•Watch - loans that have one or more weaknesses identified that may result in the borrower being unable to meet repayment terms or when the Company’s credit position could deteriorate at some future date.
•Special Mention - loans that have negative financial trends, or other weaknesses that if left uncorrected, could threaten the borrower’s capacity to meet its debt obligations. This is a transitional grade that is closely monitored by management for improvement or deterioration.
•Substandard - loans that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified may have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Such loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. The substandard category includes non-accrual loans.
•Doubtful - loans that have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.
The following table presents the recorded investment by risk categories at September 30, 2025:
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Term Loans
Amortized Cost Basis by Origination Year and Risk Grades
(dollars in thousands)20252024202320222021PriorTotal
Commercial, Financial, & Agricultural
Pass$57,395 $12,359 $10,401 $18,982 $20,744 $26,051 $66,795 $1,585 $214,312 
Watch763 190 103 8 — 147 1,174 — 2,385 
Special Mention524 — 3,119 327 — 274 — — 4,244 
Substandard— 775 87 3,388 541 37 1,137 403 6,368 
Total$58,682 $13,324 $13,710 $22,705 $21,285 $26,509 $69,106 $1,988 $227,309 
Gross YTD charge-offs$— $9 $— $— $— $30 $— $— $39 
Real Estate Construction - Residential
Pass$24,385 $6,498 $4,898 $— $— $— $— $— $35,781 
Watch— — 88 — — — — — 88 
Total$24,385 $6,498 $4,986 $— $— $— $— $— $35,869 
Gross YTD charge-offs$— $— $— $— $— $— $— $— $— 
Real Estate Construction - Commercial
Pass$32,668 $18,748 $7,598 $3,303 $2,809 $670 $4,347 $1,085 $71,228 
Watch1,345 29 — 4,795 — 40 — — 6,209 
Substandard— — 29 — — — — — 29 
Total$34,013 $18,777 $7,627 $8,098 $2,809 $710 $4,347 $1,085 $77,466 
Gross YTD charge-offs$— $— $— $— $— $— $— $— $— 
Real Estate Mortgage - Residential
Pass$49,788 $21,891 $41,120 $102,765 $43,781 $51,276 $46,092 $1,434 $358,147 
Watch10,292 1,422 — 491 375 557 31 158 13,326 
Substandard3,463 — 200 960 — 190 222 — 5,035 
Total$63,543 $23,313 $41,320 $104,216 $44,156 $52,023 $46,345 $1,592 $376,508 
Gross YTD charge-offs$— $— $— $— $— $15 $— $— $15 
Real Estate Mortgage - Commercial
Pass$159,146 $46,446 $103,151 $173,318 $159,646 $85,911 $16,975 $415 $745,008 
Watch3,209 637 452 4,023 337 629 — — 9,287 
Special Mention— 20,283 — 4,997 — — — — 25,280 
Substandard1,316 465 65 4,166 — 767 144 — 6,923 
Total$163,671 $67,831 $103,668 $186,504 $159,983 $87,307 $17,119 $415 $786,498 
Gross YTD charge-offs$— $— $12 $— $— $28 $— $— $40 
Installment and other Consumer
Pass$2,176 $1,355 $2,117 $2,038 $544 $2,035 $68 $— $10,333 
Substandard— 5 9 — — 5 — — 19 
Total$2,176 $1,360 $2,126 $2,038 $544 $2,040 $68 $— $10,352 
Gross YTD charge-offs$— $— $33 $2 $— $268 $— $— $303 
Total Portfolio
Pass$325,558 $107,297 $169,285 $300,406 $227,524 $165,943 $134,277 $4,519 $1,434,809 
Watch15,609 2,278 643 9,317 712 1,373 1,205 158 31,295 
Special Mention524 20,283 3,119 5,324 — 274 — — 29,524 
Substandard4,779 1,245 390 8,514 541 999 1,503 403 18,374 
Total$346,470 $131,103 $173,437 $323,561 $228,777 $168,589 $136,985 $5,080 $1,514,002 
Total Gross YTD charge-offs$— $9 $45 $2 $— $341 $— $— $397 
The following table presents the recorded investment by risk categories at December 31, 2024:
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Term Loans
Amortized Cost Basis by Origination Year and Risk Grades
(dollars in thousands)20242023202220212020PriorTotal
Commercial, Financial, & Agricultural
Pass$22,726 $21,302 $30,025 $25,338 $26,557 $3,932 $62,205 $1,531 $193,616 
Watch— 120 1,473 — — 262 504 — 2,359 
Special Mention— — — — 309 — 741 — 1,050 
Substandard286 87 3,428 628 37 — 356 403 5,225 
Doubtful— — — — — — 79 — 79 
Total$23,012 $21,509 $34,926 $25,966 $26,903 $4,194 $63,885 $1,934 $202,329 
Gross YTD charge-offs$— $230 $— $104 $2 $106 $1,796 $— $2,238 
Real Estate Construction - Residential
Pass$16,368 $13,808 $601 $617 $165 $— $— $33 $31,592 
Substandard454 — — — — — — — 454 
Total$16,822 $13,808 $601 $617 $165 $— $— $33 $32,046 
Gross YTD charge-offs$— $— $— $— $— $— $— $— $— 
Real Estate Construction - Commercial
Pass$49,742 $7,057 $10,424 $3,828 $622 $564 $7,072 $— $79,309 
Watch911 124 13 — — — — — 1,048 
Substandard— 29 — — — 49 — — 78 
Total$50,653 $7,210 $10,437 $3,828 $622 $613 $7,072 $— $80,435 
Gross YTD charge-offs$— $— $— $— $— $— $— $— $— 
Real Estate Mortgage - Residential
Pass$30,005 $46,795 $115,928 $49,519 $42,036 $23,440 $44,148 $1,543 $353,414 
Watch5,702 — 40 391 423 675 30 — 7,261 
Substandard— — 426 89 — 376 169 — 1,060 
Total$35,707 $46,795 $116,394 $49,999 $42,459 $24,491 $44,347 $1,543 $361,735 
Gross YTD charge-offs$— $— $— $— $— $14 $37 $— $51 
Real Estate Mortgage - Commercial
Pass$56,648 $117,853 $212,698 $203,591 $69,342 $57,352 $14,815 $137 $732,436 
Watch2,298 51 4,763 1,961 — 184 — 581 9,838 
Special Mention27,271 — 5,679 — — — — — 32,950 
Substandard64 75 231 — — — — — 370 
Total$86,281 $117,979 $223,371 $205,552 $69,342 $57,536 $14,815 $718 $775,594 
Gross YTD charge-offs$— $340 $— $65 $— $32 $— $— $437 
Installment and other Consumer
Pass$2,188 $3,636 $3,591 $1,165 $554 $2,805 $72 $— $14,011 
Substandard— — — — — 10 — — 10 
Total$2,188 $3,636 $3,591 $1,165 $554 $2,815 $72 $— $14,021 
Gross YTD charge-offs$10 $11 $9 $3 $1 $230 $1 $— $265 
Total Portfolio
Pass$177,677 $210,451 $373,267 $284,058 $139,276 $88,093 $128,312 $3,244 $1,404,378 
Watch8,911 295 6,289 2,352 423 1,121 534 581 20,506 
Special Mention27,271 — 5,679 — 309 — 741 — 34,000 
Substandard804 191 4,085 717 37 435 525 403 7,197 
Doubtful— — — — — — 79 — 79 
Total$214,663 $210,937 $389,320 $287,127 $140,045 $89,649 $130,191 $4,228 $1,466,160 
Total Gross YTD charge-offs$10 $581 $9 $172 $3 $382 $1,834 $— $2,991 
Delinquent and Non-Accrual Loans
The delinquency status of loans is determined based on the contractual terms of the notes. Loans are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual status when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual status, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Subsequent interest payments received on non-accrual loans are applied to principal if any doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally six months.
The following table presents the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of September 30, 2025 and December 31, 2024:
(dollars in thousands)Non-accrual with no AllowanceNon-accrual with AllowanceTotal Non-accrual90 Days Past Due And Still AccruingTotal Non-performing Loans
September 30, 2025
Commercial, Financial, and Agricultural$— $2,004 $2,004 $500 $2,504 
Real estate mortgage − residential— 1,508 1,508 352 1,860 
Real estate mortgage − commercial— 525 525 — 525 
Installment and Other Consumer— 19 19 3 22 
Total$— $4,056 $4,056 $855 $4,911 
December 31, 2024
Commercial, Financial, and Agricultural$— $923 $923 $— $923 
Real estate construction − residential— 454 454 —454 
Real estate construction − commercial— 49 49 —49 
Real estate mortgage − residential— 963 963 2071,170 
Real estate mortgage − commercial— 138 138 —138 
Installment and Other Consumer— 10 10 3 13 
Total$— $2,537 $2,537 $210 $2,747 
No material amount of interest income was recognized on non-accrual loans during the three and nine months ended September 30, 2025 and 2024.
The following table provides aging information for the Company’s past due and non-accrual loans at September 30, 2025 and December 31, 2024.
(dollars in thousands)Current or Less Than 30 Days Past Due30 - 89 Days Past Due90 Days Past Due And Still AccruingNon-AccrualTotal
September 30, 2025
Commercial, Financial, and Agricultural$224,567 $238 $500 $2,004 $227,309 
Real estate construction − residential35,869 — — — 35,869 
Real estate construction − commercial77,466 — — — 77,466 
Real estate mortgage − residential370,442 4,206 352 1,508 376,508 
Real estate mortgage − commercial785,781 192 — 525 786,498 
Installment and Other Consumer10,229 101 3 19 10,352 
Total$1,504,354 $4,737 $855 $4,056 $1,514,002 
December 31, 2024
Commercial, Financial, and Agricultural$201,201 $205 $— $923 $202,329 
Real estate construction − residential31,592 — — 454 32,046 
Real estate construction − commercial80,386 — — 49 80,435 
Real estate mortgage − residential358,393 2,172 207 963 361,735 
Real estate mortgage − commercial773,918 1,538 — 138 775,594 
Installment and Other Consumer13,900 108 3 10 14,021 
Total$1,459,390 $4,023 $210 $2,537 $1,466,160 
Loan Modifications for Borrowers Experiencing Financial Difficulty
In the normal course of business, the Company may execute loan modifications with borrowers. These modifications are analyzed to determine whether the modification is considered concessionary, long-term and made to a borrower experiencing financial difficulty. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. If a loan modification is determined to be made to a borrower experiencing financial difficulty, the loan is considered collateral-dependent and evaluated as part of the allowance for credit losses as described above in the Allowance for Credit Losses section of this note.

For each of the three and nine months ended September 30, 2025 and 2024, the Company did not modify any loans made to borrowers experiencing financial difficulty. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term.
Loans Held for Sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale. Loans held for sale are being carried at the lower of cost or estimated fair value. The loans are primarily sold to Freddie Mac, Fannie Mae, PennyMac, and various other secondary market investors. Loans held for sale totaled $1.4 million at September 30, 2025. There were no loans held for sale at December 31, 2024.