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LOANS AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES LOANS AND ALLOWANCE FOR CREDIT LOSSES
Portfolio Segments:
    Commercial and agricultural real estate loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The level of owner-occupied property versus non-owner-occupied property are tracked and monitored on a regular basis. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 75%.
Commercial and industrial (“C&I”) loans are primarily underwritten based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Agricultural operating loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines. Operating lines are typically written for one year and secured by the crop and other farm assets or other business assets, as considered necessary. Agricultural loans carry significant credit risks as they may involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields.
Residential mortgage loans are collateralized by primary and secondary positions on real estate and are underwritten primarily based on borrower’s documented income, credit scores, and collateral values. Under consumer home equity loan guidelines, the borrower will be approved for a loan based on a percentage of their home’s appraised value less the balance owed on the existing first mortgage. Credit risk is minimized within the residential mortgage portfolio due to relatively small loan account balances spread across many individual borrowers. Management evaluates trends in past due loans and current economic factors such as the housing price index on a regular basis.
Consumer installment loans are comprised of other consumer loans secured primarily by automobiles and other personal assets and originated indirect paper loans secured primarily by boats and recreational vehicles. Consumer loan underwriting terms often depend on the collateral type, debt to income ratio and the borrower’s creditworthiness as evidenced by their credit score. In the event of a consumer installment loan default, collateral value alone may not provide an adequate source of repayment of the outstanding loan balance. This shortage is a result of the greater likelihood of damage, loss and depreciation for consumer based collateral.
Loans are stated at the principal amount outstanding net of unearned net deferred fees and costs and loans in process, unearned discounts on acquired loans, and allowance for credit losses (“ACL”). Unearned net deferred fees and costs includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at June 30, 2025, and December 31, 2024, follows:
June 30, 2025
December 31, 2024
Amortized Cost% of TotalAmortized Cost% of Total
Commercial/Agricultural real estate:
Commercial real estate$691,843 51.4 %$707,009 51.7 %
Agricultural real estate68,965 5.1 %72,738 5.3 %
Multi-family real estate238,823 17.8 %220,706 16.1 %
Construction and land development70,008 5.2 %78,146 5.7 %
C&I/Agricultural operating:
Commercial and industrial109,048 8.1 %115,535 8.4 %
Agricultural operating31,895 2.4 %31,017 2.3 %
Residential mortgage:
Residential mortgage125,436 9.3 %131,892 9.6 %
Purchased HELOC loans2,368 0.2 %2,956 0.2 %
Consumer installment:
Originated indirect paper2,959 0.2 %3,970 0.3 %
Other consumer4,275 0.3 %5,012 0.4 %
Total loans receivable$1,345,620 100 %$1,368,981 100 %
Less: Allowance for credit losses(21,347)(20,549)
Net loans receivable$1,324,273 $1,348,432 
Credit Quality/Risk Ratings:
    Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its commercial/agricultural real estate and commercial and industrial/agricultural operating loan portfolios. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant.
Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio ratings are presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows:
1 through 4 - Pass. A “Pass” loan means that the condition of the borrower and the performance of the loan is satisfactory or better.
5 - Watch. A “Watch” loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future.
6 - Special Mention. A “Special Mention” loan has one or more potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future.
7 - Substandard. A “Substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
8 - Doubtful. A “Doubtful” loan has all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
9 - Loss. Loans classified as “Loss” are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future.
As of June 30, 2025, and December 31, 2024, there were no loans classified as doubtful with a risk rating of 8 and no loans classified as loss with a risk rating of 9.
Residential and consumer loans are typically not rated until they are past due 90 days at month-end which is why they are classified as pass graded 1-5 and once 90 days past due at month-end or nonaccrual, get assigned a grade 7.
Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of June 30, 2025, and gross charge-offs for the six months ended June 30, 2025:



Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolvingRevolving to TermTotal
Commercial/Agricultural real estate:
Commercial real estate
Risk rating 1 to 5$44,115 $50,606 $74,412 $102,712 $200,569 $194,917 $9,209 $— $676,540 
Risk rating 6— — 1,301 2,218 39 3,528 — — 7,086 
Risk rating 7— 170 671 1,100 2,076 4,200 — — 8,217 
Total$44,115 $50,776 $76,384 $106,030 $202,684 $202,645 $9,209 $— $691,843 
Current period gross charge-offs$— $— $— $51 $— $— $— $— $51 
Agricultural real estate
Risk rating 1 to 5$8,567 $2,843 $6,435 $16,349 $9,790 $18,751 $644 $— $63,379 
Risk rating 6— — — — — 138 — — 138 
Risk rating 7— — 201 20 4,861 366 — — 5,448 
Total$8,567 $2,843 $6,636 $16,369 $14,651 $19,255 $644 $— $68,965 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Multi-family real estate
Risk rating 1 to 5$20,800 $8,679 $7,711 $56,597 $89,326 $46,306 $431 $— $229,850 
Risk rating 6— — — — 8,973 — — — 8,973 
Risk rating 7— — — — — — — — — 
Total$20,800 $8,679 $7,711 $56,597 $98,299 $46,306 $431 $— $238,823 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Construction and land development
Risk rating 1 to 5$19,356 $13,758 $24,874 $9,481 $329 $2,124 $86 $— $70,008 
Risk rating 6— — — — — — — — — 
Risk rating 7— — — — — — — — — 
Total$19,356 $13,758 $24,874 $9,481 $329 $2,124 $86 $— $70,008 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial/Agricultural operating:
Commercial and industrial
Risk rating 1 to 5$8,161 $16,884 $8,605 $26,589 $9,522 $10,511 $20,955 $— $101,227 
Risk rating 6240 810 1,516 2,868 69 158 856 — 6,517 
Risk rating 7— — 370 17 381 — 536 — 1,304 
Total$8,401 $17,694 $10,491 $29,474 $9,972 $10,669 $22,347 $— $109,048 
Current period gross charge-offs$— $— $36 $16 $— $— $35 $— $87 
Agricultural operating
Risk rating 1 to 5$3,613 $1,919 $2,668 $2,236 $385 $1,852 $18,769 $— $31,442 
Risk rating 6— — 47 — 33 202 171 — 453 
Risk rating 7— — — — — — — — — 
Total$3,613 $1,919 $2,715 $2,236 $418 $2,054 $18,940 $— $31,895 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
ContinuedAmortized Cost Basis by Origination Year
20252024202320222021PriorRevolvingRevolving to TermTotal
Residential mortgage:
Residential mortgage
Risk rating 1 to 5$3,204 $10,928 $26,288 $29,641 $7,016 $28,110 $17,643 $— $122,830 
Risk rating 7— — — — 135 2,371 100 — 2,606 
Total$3,204 $10,928 $26,288 $29,641 $7,151 $30,481 $17,743 $— $125,436 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Purchased HELOC loans
Risk rating 1 to 5$— $— $— $— $— $— $2,251 $— $2,251 
Risk rating 7— — — — — — 117 — 117 
Total$— $— $— $— $— $— $2,368 $— $2,368 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer installment:
Originated indirect paper
Risk rating 1 to 5$— $— $— $— $— $2,927 $— $— $2,927 
Risk rating 7— — — — — 32 — — 32 
Total$— $— $— $— $— $2,959 $— $— $2,959 
Current period gross charge-offs$— $— $— $— $— $1 $— $— $1 
Other consumer
Risk rating 1 to 5$738 $1,109 $900 $535 $262 $262 $467 $— $4,273 
Risk rating 7— 2 — — — — — — 2 
Total$738 $1,111 $900 $535 $262 $262 $467 $— $4,275 
Current period gross charge-offs$— $3 $10 $— $— $— $4 $— $17 
Total loans receivable$108,794 $107,708 $155,999 $250,363 $333,766 $316,755 $72,235 $— $1,345,620 
Total current period gross charge-offs$— $3 $46 $67 $— $1 $39 $— $156 
Below is a summary of the amortized cost of loans summarized by class, credit quality risk rating and year of origination as of December 31, 2024, and gross charge-offs for the twelve months ended December 31, 2024:

Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolvingRevolving to TermTotal
Commercial/Agricultural real estate:
Commercial real estate
Risk rating 1 to 5$49,580 $76,381 $123,806 $207,155 $89,539 $141,264 $7,669 $— $695,394 
Risk rating 6173 1,406 2,238 138 — — — — 3,955 
Risk rating 7— — 553 2,445 214 4,448 — — 7,660 
Total$49,753 $77,787 $126,597 $209,738 $89,753 $145,712 $7,669 $— $707,009 
Current period gross charge-offs$— $— $— $39 $— $— $— $— $39 
Agricultural real estate
Risk rating 1 to 5$3,556 $10,870 $17,160 $10,098 $7,335 $16,642 $715 $— $66,376 
Risk rating 6— — — — — 140 — — 140 
Risk rating 7— 202 477 5,102 — 441 — — 6,222 
Total$3,556 $11,072 $17,637 $15,200 $7,335 $17,223 $715 $— $72,738 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Multi-family real estate
Risk rating 1 to 5$8,777 $7,790 $40,426 $101,213 $43,115 $19,005 $380 $— $220,706 
Risk rating 6— — — — — — — — — 
Risk rating 7— — — — — — — — — 
Total$8,777 $7,790 $40,426 $101,213 $43,115 $19,005 $380 $— $220,706 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Construction and land development
Risk rating 1 to 5$23,832 $25,102 $10,186 $346 $1,297 $868 $16,412 $— $78,043 
Risk rating 6— — — — — 103 — — 103 
Risk rating 7— — — — — — — — — 
Total$23,832 $25,102 $10,186 $346 $1,297 $971 $16,412 $— $78,146 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial/Agricultural operating:
Commercial and industrial
Risk rating 1 to 5$17,599 $13,049 $28,343 $13,629 $8,787 $4,197 $24,809 $— $110,413 
Risk rating 6— — 3,062 13 — — 292 626 3,993 
Risk rating 7— 500 74 401 — — 154 — 1,129 
Total$17,599 $13,549 $31,479 $14,043 $8,787 $4,197 $25,255 $626 $115,535 
Current period gross charge-offs$— $131 $7 $— $5 $— $— $— $143 
Agricultural operating
Risk rating 1 to 5$3,373 $3,062 $3,144 $563 $198 $1,884 $17,609 $— $29,833 
Risk rating 6— 49 — 37 240 — 65 — 391 
Risk rating 7— — 473 320 — — — — 793 
Total$3,373 $3,111 $3,617 $920 $438 $1,884 $17,674 $— $31,017 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
ContinuedAmortized Cost Basis by Origination Year
20242023202220212020PriorRevolvingRevolving to TermTotal
Residential mortgage:
Residential mortgage
Risk rating 1 to 5$13,400 $28,598 $30,386 $7,369 $2,141 $30,004 $17,349 $— 129,247 
Risk rating 7— — 130 — — 2,507 8 — 2,645 
Total$13,400 $28,598 $30,516 $7,369 $2,141 $32,511 $17,357 $— $131,892 
Current period gross charge-offs$— $— $— $— $— $4 $— $— $4 
Purchased HELOC loans
Risk rating 1 to 5$— $— $— $— $— $— $2,839 $— $2,839 
Risk rating 7— — — — — — 117 — 117 
Total$— $— $— $— $— $— $2,956 $— $2,956 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer installment:
Originated indirect paper
Risk rating 1 to 5$— $— $— $— $— $3,944 $— $— $3,944 
Risk rating 7— — — — — 26 — — 26 
Total$— $— $— $— $— $3,970 $— $— $3,970 
Current period gross charge-offs$— $— $— $— $— $17 $— $— $17 
Other consumer
Risk rating 1 to 5$1,519 $1,229 $811 $385 $341 $214 $511 $— $5,010 
Risk rating 72 — — — — — — — 2 
Total$1,521 $1,229 $811 $385 $341 $214 $511 $— $5,012 
Current period gross charge-offs$— $4 $3 $1 $— $— $10 $— $18 
Total loans receivable$121,811 $168,238 $261,269 $349,214 $153,207 $225,687 $88,929 $626 $1,368,981 
Total current period gross charge-offs$— $135 $10 $40 $5 $21 $10 $— $221 
Allowance for Credit Losses - Loans- The ACL is comprised of collectively evaluated and individually evaluated components. The allowance for credit losses (“ACL”) represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, the borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and modifications, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating loans collectively on a pooled basis when similar risk characteristics exist, and on an individual basis when management determines that a loan does not share similar risk characteristics with other loans.

The following tables present the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and six months ended June 30, 2025:

Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentTotal
Three months ended June 30, 2025
Allowance for Credit Losses - Loans:
ACL - Loans, at beginning of period$16,244 $1,430 $2,338 $193 $20,205 
Charge-offs— (67)— (7)(74)
Recoveries52 1 — 5 58 
Additions/reversals to ACL - Loans via provision for credit losses charged to operations868 294 9 (13)1,158 
ACL - Loans, at end of period$17,164 $1,658 $2,347 $178 $21,347 
Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentTotal
Six months ended June 30, 2025
Allowance for Credit Losses - Loans:
ACL - Loans, at beginning of period$16,516 $1,330 $2,489 $214 $20,549 
Charge-offs(51)(87)— (18)(156)
Recoveries92 46 1 8 147 
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations607 369 (143)(26)807 
ACL - Loans, at end of period$17,164 $1,658 $2,347 $178 $21,347 
The following table presents the balance and activity in the allowance for credit losses (“ACL”) - loans by portfolio segment for the three and six months ended June 30, 2024:
Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentTotal
Three months ended June 30, 2024
Allowance for Credit Losses - Loans:
ACL - Loans, at beginning of period$18,255 $1,166 $2,765 $250 $22,436 
Charge-offs— — — (12)(12)
Recoveries2 10 2 2 16 
(Reversals)/additions to ACL - Loans via provision for credit losses charged to operations(1,224)(59)17 4 (1,262)
ACL - Loans, at end of period$17,033 $1,117 $2,784 $244 $21,178 
Commercial/Agricultural Real EstateC&I/Agricultural operatingResidential MortgageConsumer InstallmentTotal
Six months ended June 30, 2024
Allowance for Credit Losses - Loans:
ACL - Loans, at beginning of period$18,784 $1,105 $2,744 $275 $22,908 
Charge-offs— — — (17)(17)
Recoveries41 25 3 5 74 
Additions/(reversals) to ACL - Loans via provision for credit losses charged to operations(1,792)(13)37 (19)(1,787)
ACL - Loans, at end of period$17,033 $1,117 $2,784 $244 $21,178 
Allowance for Credit Losses - Unfunded Commitments - In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $627 at June 30, 2025, and $334 at December 31, 2024, classified in other liabilities on the consolidated balance sheets. The following table presents the balance and activity in the ACL - Unfunded Commitments for the three and six months ended June 30, 2025, and the twelve months ended December 31, 2024.

June 30, 2025 and Three Months EndedJune 30, 2025 and Six Months Ended
ACL - Unfunded Commitments - beginning of period$435 $334 
Additions (reversals) to ACL - Unfunded Commitments via provision for credit losses charged to operations192 293 
ACL - Unfunded Commitments - End of period$627 $627 

Provision for credit losses - The provision for credit losses is determined by the Company as the amount to be added (reversed) to the ACL loss accounts for various types of financial instruments (including loans and off-balance sheet credit exposures) after net charge-offs have been deducted to bring the ACL to a level that, in managements judgement, is necessary to absorb expected credit losses over the lives of the respective financial instruments. The following table presents the components of the provision for credit losses.

June 30, 2025 and Three Months EndedJune 30, 2024 and Three Months EndedJune 30, 2025 and Six Months EndedJune 30, 2024 and Six Months Ended
Provision for credit losses on:
Loans $1,158 $(1,262)$807 $(1,787)
Unfunded Commitments192 (263)293 (538)
Total provision for credit losses$1,350 $(1,525)$1,100 $(2,325)
An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of June 30, 2025, and December 31, 2024, respectively, was as follows:
(Loan balances at amortized cost)30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueTotal
Past Due		CurrentTotal
Loans
June 30, 2025
Commercial/Agricultural real estate:
Commercial real estate$7,962 $170 $45 $8,177 $683,666 $691,843 
Agricultural real estate— — — — 68,965 68,965 
Multi-family real estate— — — — 238,823 238,823 
Construction and land development— — — — 70,008 70,008 
C&I/Agricultural operating:
Commercial and industrial— 1,324 405 1,729 107,319 109,048 
Agricultural operating— — — — 31,895 31,895 
Residential mortgage:
Residential mortgage2,858 414 566 3,838 121,598 125,436 
Purchased HELOC loans— — — — 2,368 2,368 
Consumer installment:
Originated indirect paper1 — — 1 2,958 2,959 
Other consumer12 1 — 13 4,262 4,275 
Total $10,833 $1,909 $1,016 $13,758 $1,331,862 $1,345,620 
(Loan balances at amortized cost)30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueTotal
Past Due		CurrentTotal
Loans
December 31, 2024
Commercial/Agricultural real estate:
Commercial real estate$857 $322 $367 $1,546 $705,463 $707,009 
Agricultural real estate26 — 556 582 72,156 72,738 
Multi-family real estate— — — — 220,706 220,706 
Construction and land development— — — — 78,146 78,146 
C&I/Agricultural operating:
Commercial and industrial566 50 564 1,180 114,355 115,535 
Agricultural operating— — 793 793 30,224 31,017 
Residential mortgage:
Residential mortgage1,873 796 500 3,169 128,723 131,892 
Purchased HELOC loans— — 117 117 2,839 2,956 
Consumer installment:
Originated indirect paper25 — — 25 3,945 3,970 
Other consumer27 — — 27 4,985 5,012 
Total $3,374 $1,168 $2,897 $7,439 $1,361,542 $1,368,981 
Nonaccrual Loans - The following tables present the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated at June 30, 2025, December 31, 2024, and June 30, 2024, with no allowance for credit losses:
June 30, 2025Total Nonaccrual LoansNonaccrual with no Allowance for Credit LossesLoans Past Due over 89 Days Still Accruing
Commercial/Agricultural real estate:
Commercial real estate$5,013 $4,807 $— 
Agricultural real estate5,447 5,247 — 
C&I/Agricultural operating:
Commercial and industrial600 453 — 
Residential mortgage:
Residential mortgage432 432 521 
Purchased HELOC loans117 117 — 
Total $11,609 $11,056 $521 


December 31, 2024Total Nonaccrual LoansNonaccrual with no Allowance for Credit LossesLoans Past Due over 89 Days Still Accruing
Commercial/Agricultural real estate:
Commercial real estate$4,594 $4,374 $— 
Agricultural real estate6,222 6,020 — 
Construction and land development103 103 — 
C&I/Agricultural operating:
Commercial and industrial597 564 — 
Agricultural operating793 793 — 
Residential mortgage:
Residential mortgage741 548 186 
Purchased HELOC loans117 117 — 
Consumer installment:
Originated indirect paper1 1 — 
Total $13,168 $12,520 $186 
The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is past due according to the following schedules:
•Commercial/agricultural real estate loans, past due 90 days or more;
•Commercial and industrial/agricultural operating loans past due 90 days or more;
•Closed ended consumer installment loans past due 120 days or more; and
•Residential mortgage and open ended consumer installment loans past due 180 days or more.
The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be modified is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.
Collateral Dependent Loans - A loan is considered to be collateral dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on the fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The following tables present the amortized cost basis of collateral dependent loans by portfolio segment and collateral type that were individually evaluated to determine expected credit losses and the related allowance for credit losses as of June 30, 2025, and December 31, 2024.
Collateral Type
June 30, 2025Real EstateOther AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial/Agricultural real estate:
Commercial real estate$12,680 $— $12,680 $7,149 $5,531 $406 
Agricultural real estate5,447 — 5,447 5,246 201 99 
C&I/Agricultural operating:
Commercial and industrial— 1,916 1,916 1,066 850 162 
Agricultural operating— — — — — — 
Residential mortgage:
Residential mortgage2,612 — 2,612 2,612 — — 
Consumer installment:
Originated indirect paper— 32 32 32 — — 
Other consumer— 2 2 2 — — 
Total $20,739 $1,950 $22,689 $16,107 $6,582 $667 

Collateral Type
December 31, 2024Real EstateOther AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial/Agricultural real estate:
Commercial real estate$9,004 $— $9,004 $6,597 $2,407 $258 
Agricultural real estate6,222 — 6,222 6,020 202 99 
Construction and land development103 — 103 103 — — 
C&I/Agricultural operating:
Commercial and industrial— 1,806 1,806 1,146 660 49 
Agricultural operating— 793 793 793 — — 
Residential mortgage:
Residential mortgage3,066 — 3,066 2,773 293 49 
Consumer installment:
Originated indirect paper— 25 25 25 — — 
Other consumer— 2 2 2 — — 
Total $18,395 $2,626 $21,021 $17,459 $3,562 $455 
There were no outstanding commitments to borrowers experiencing financial difficulty as of June 30, 2025. There were unused lines of credit totaling $29 on loans with borrowers experiencing financial difficulties as of June 30, 2025.
The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the three months ended June 30, 2025:
Term Extension
Loan ClassAmortized Cost Basis at June 30, 2025% of Total Class of Financing Receivables
Commercial real estate$164 0.02 %
Other-Than-Insignificant Payment Delay
Loan ClassAmortized Cost Basis at June 30, 2025% of Total Class of Financing Receivables
Commercial real estate$4,263 0.62 %
Agricultural real estate$200 0.29 %

The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2025:
Term Extension
Loan ClassFinancial Effect
Commercial real estate
A weighted average of 2 months was added to the term of the loan
Other-Than-Insignificant Payment Delay
Loan ClassFinancial Effect
Commercial real estate
Payments were deferred a weighted average of 3 months
Agricultural real estate
Payments were deferred a weighted average of 9 months

The tables below detail Loan Modifications made to Borrowers Experiencing Financial Difficulty during the twelve months ended June 30, 2025:
Term Extension
Loan ClassAmortized Cost Basis at June 30, 2025% of Total Class of Financing Receivables
Commercial real estate$164 0.02 %
Commercial and industrial$661 0.61 %
Agricultural operating$171 0.54 %
Residential mortgage$17 0.01 %
Other-Than-Insignificant Payment Delay
Loan ClassAmortized Cost Basis at June 30, 2025% of Total Class of Financing Receivables
Commercial real estate$5,738 0.83 %
Agricultural real estate$200 0.29 %
Residential mortgage$120 0.10 %
Term Extension and Principal Forgiveness
Loan ClassAmortized Cost Basis at June 30, 2025% of Total Class of Financing Receivables
Other consumer$2 — %
The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2025:
Term Extension
Loan ClassFinancial Effect
Commercial real estate
A weighted average of 2 months was added to the term of the loans
Commercial and industrial
A weighted average of 13 months was added to the term of the loans
Agricultural operating
A weighted average of 8 months was added to the term of the loans
Residential mortgage
A weighted average of 55 months was added to the term of the loans
Other-Than-Insignificant Payment Delay
Loan ClassFinancial Effect
Commercial real estate
Payments were deferred a weighted average of 3 months
Agricultural real estate
Payments were deferred a weighted average of 9 months
Residential mortgage
Payments were deferred a weighted average of 3 months
Term Extension and Principal Forgiveness
Loan ClassFinancial Effect
Other consumer
A weighted average of 3 months was added to the term of the loan and a principal balance of $2 was forgiven
The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the three months ended June 30, 2024:
Other-Than-Insignificant Payment Delay
Loan ClassAmortized Cost Basis at
June 30, 2024		% of Total Class of Financing Receivables
Commercial and industrial$920 0.72 %
Residential mortgage$163 0.12 %
The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2024:
Other-Than-Insignificant Payment Delay
Loan ClassFinancial Effect
Commercial and industrial
Payments were deferred a weighted average of 3 months
Residential mortgage
Payments were deferred a weighted average of 3 months
The tables below detail Loan Modifications Made to Borrowers Experiencing Financial Difficulty during the twelve months ended June 30, 2024:
Term Extension
Loan ClassAmortized Cost Basis at
June 30, 2024		% of Total Class of Financing Receivables
Commercial real estate$4,434 0.61 %
Commercial and industrial$1,450 1.14 %
Other-Than-Insignificant Payment Delay
Loan ClassAmortized Cost Basis at
June 30, 2024		% of Total Class of Financing Receivables
Commercial and industrial$920 0.72 %
Residential mortgage$245 0.18 %
The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2024:
Term Extension
Loan ClassFinancial Effect
Commercial real estate
A weighted average of 20 months was added to the term of the loans
Commercial and industrial
A weighted average of 11 months was added to the term of the loans
Other-Than-Insignificant Payment Delay
Loan ClassFinancial Effect
Commercial and industrial
Payments were deferred a weighted average of 3 months
Residential mortgage
Payments were deferred a weighted average of 3 months

The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
The following table shows the performance of such loans that have been modified during the twelve months ended June 30, 2025.
Current30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past Due
Commercial real estate$5,902 $— $— $— 
Agricultural real estate200 — — — 
Commercial and industrial661 — — — 
Agricultural operating171 — — — 
Residential mortgage17 120 — — 
Other consumer2 — — — 
Total$6,953 $120 $— $— 

The following table shows the performance of such loans that have been modified during the twelve months ended June 30, 2024.
Current30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past Due
Commercial real estate$4,434 $— $— $— 
Commercial and industrial2,370 — — — 
Residential mortgage14 — 82 149 
Total$6,818 $— $82 $149