Note 4 - Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2025

NOTE 4 Loans and Allowance for Credit Losses

The following table presents total loans outstanding, by portfolio segment, as of March 31, 2025 and December 31, 2024:

	*March 31,*		*December 31,*
(dollars in thousands)	*2025*		*2024*
Commercial
Commercial and industrial	$	658,446	$	666,727
Commercial real estate
Construction, land and development		360,024		294,677
Multifamily		353,060		363,123
Non-owner occupied		951,559		967,025
Owner occupied		424,880		371,418
Total commercial real estate		2,089,523		1,996,243
Agricultural
Land		68,894		61,299
Production		64,240		63,008
Total agricultural		133,134		124,307
Total commercial		2,881,103		2,787,277
Consumer
Residential real estate
First lien		907,534		921,019
Construction		38,553		33,547
HELOC		175,600		162,509
Junior lien		43,740		44,060
Total residential real estate		1,165,427		1,161,135
Other consumer		38,953		44,122
Total consumer		1,204,380		1,205,257
Total loans	$	4,085,483	$	3,992,534

Total loans included net deferred loan fees and costs of $1.0 million and $1.1 million at March 31, 2025 and December 31, 2024, respectively. Unearned discounts associated with bank acquisitions totaled $65.1 million and $70.6 million as of March 31, 2025 and December 31, 2024, respectively.

Accrued interest receivable on loans is recorded within accrued interest receivable, and totaled $17.0 million at March 31, 2025 and $16.4 million at December 31, 2024.

The Company manages its loan portfolio proactively to effectively identify problem credits and assess trends early, implement effective work-out strategies, and take charge-offs as promptly as practical. In addition, the Company continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions. The Company monitors and manages credit risk through the following governance structure:

●

The Credit Risk team, Collection and Special Assets team and the Credit Governance Committee, which is an internal management committee comprised of various executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Risk, and Commercial and Retail Banking, oversee the Company’s systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, and maintain the integrity of the loan rating system.

●

The Loan Committee is responsible for reviewing and approving all credit requests that exceed individual limits that have not been countersigned by an individual with sufficient assigned authority. This committee has full authority to commit the Bank to any request that fits within its assigned approval authority.

●

The adequacy of the ACL is overseen by the ACL Governance Committee, which is an internal management committee comprised of various Company executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Risk, and Commercial and Retail Banking. The ACL Governance Committee supports the oversight efforts of the Bank’s Board of Directors.

●

The Bank’s Board of Directors has approval authority and responsibility for all matters regarding loan policy, reviews all loans approved or declined by the Loan Committee, approves lending authority and monitors asset quality and concentration levels.

●

The ACL Governance Committee and Bank Board of Directors has approval authority and oversight responsibility for the ACL adequacy and methodology.

Loans with a carrying value of $2.9 billion, as of both March 31, 2025 and December 31, 2024, were pledged to secure public deposits, and for other purposes required or permitted by law.

ACL on Loans

The following tables present, by loan portfolio segment, a summary of the changes in the ACL on loans for the three months ended March 31, 2025 and 2024:

	Three months ended March 31, 2025
	Beginning		Provision for			Loan			Loan		Ending
(dollars in thousands)	Balance		Credit Losses⁽¹⁾			Charge-offs			Recoveries		Balance
Commercial
Commercial and industrial	$	8,170	$	(311	)	$	(169	)	$	270	$	7,960
Commercial real estate
Construction, land and development		16,277		2,092			—			—		18,369
Multifamily		4,716		33			—			—		4,749
Non-owner occupied		16,513		(171	)		—			—		16,342
Owner occupied		3,226		275			—			11		3,512
Total commercial real estate		40,732		2,229			—			11		42,972
Agricultural
Land		597		6			—			—		603
Production		631		270			—			12		913
Total agricultural		1,228		276			—			12		1,516
Total commercial		50,130		2,194			(169	)		293		52,448
Consumer
Residential real estate
First lien		6,921		175			(54	)		—		7,042
Construction		357		110			—			—		467
HELOC		1,339		91			(250	)		—		1,180
Junior lien		742		(3	)		(300	)		—		439
Total residential real estate		9,359		373			(604	)		—		9,128
Other consumer		440		(160	)		(39	)		112		353
Total consumer		9,799		213			(643	)		112		9,481
Total	$	59,929	$	2,407		$	(812	)	$	405	$	61,929

(1)	The difference in the credit loss expense reported herein compared to the consolidated statements of income is associated with the credit loss expense of ($1.5) million related to off-balance sheet credit exposure and ($2) thousand related to HTM investment securities.

	*Three months ended March 31, 2024*
	*Beginning*		*Provision for*			*Loan*			*Loan*		*Ending*
(dollars in thousands)	*Balance*		Credit Losses⁽¹⁾			*Charge-offs*			*Recoveries*		*Balance*
Commercial
Commercial and industrial	$	9,705	$	(156	)	$	(164	)	$	123	$	9,508
Commercial real estate
Construction, land and development		6,135		(213	)		—			—		5,922
Multifamily		1,776		372			—			—		2,148
Non-owner occupied		7,726		379			—			—		8,105
Owner occupied		2,449		29			(29	)		11		2,460
Total commercial real estate		18,086		567			(29	)		11		18,635
Agricultural
Land		96		152			—			—		248
Production		84		135			—			—		219
Total agricultural		180		287			—			—		467
Total commercial		27,971		698			(193	)		134		28,610
Consumer
Residential real estate
First lien		6,087		64			—			—		6,151
Construction		485		4			—			—		489
HELOC		835		30			—			—		865
Junior lien		264		20			—			—		284
Total residential real estate		7,671		118			—			—		7,789
Other consumer		201		(17	)		(12	)		13		185
Total consumer		7,872		101			(12	)		13		7,974
Total	$	35,843	$	799		$	(205	)	$	147	$	36,584

(1)	The difference in the credit loss expense reported herein compared to the consolidated statements of income is associated with the credit loss expense of ($793) million related to off-balance sheet credit exposure and ($6) thousand related to HTM investment securities.

The ACL on loans at March 31, 2025 was $61.9 million, an increase of $2.0 million, or 3.3%, from December 31, 2024. The increase was primarily due to an increase of $2.1 million in the provision for credit losses on construction, land and development loans. This increase was primarily due to organic loan growth driven by existing commitments funded during the period.

Credit Concentrations

The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To identify credit concentrations effectively, all commercial and industrial and owner occupied real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes and state and county codes. Property type coding is used for investment real estate. There were no industry concentrations exceeding 10% of the Company’s total loan portfolio as of March 31, 2025.

Credit Quality Indicators

The Company’s consumer loan portfolio is primarily comprised of secured loans that are evaluated at origination on a centralized basis against standardized underwriting criteria. The Company generally does not risk rate consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Credit quality for the consumer loan portfolio is measured by delinquency rates, nonaccrual amounts and actual losses incurred. These loans are rated as either performing or nonperforming.

The Company assigns a risk rating to all commercial loans, except pools of homogeneous loans, and performs detailed internal and external reviews of risk rated loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the estimated fair values of collateral securing the loans. These credit quality indicators are used to assign a risk rating to each individual loan.

The Company’s ratings are aligned to pass and criticized categories. The criticized category includes special mention, substandard, and doubtful risk ratings. The risk ratings are defined as follows:

●

Pass: A pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

●

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the loan or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

●

Substandard: Loans classified as substandard are not adequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well‑defined weakness, or weaknesses that jeopardize the repayment of the debt. Well-defined weaknesses include a borrower’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, or the failure to fulfill expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

●

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

●

Loss: Loans classified as loss are considered uncollectible and charged off immediately.

The following tables set forth the amortized cost basis of loans by credit quality indicator and vintage based on the most recent analysis performed, as of March 31, 2025 and December 31, 2024:

													*Revolving*
(dollars in thousands)	*Term Loans Amortized Cost Basis by Origination Year*												*Loans Amortized*
As of March 31, 2025	*2025*		*2024*		*2023*		*2022*		*2021*		*Prior*		*Cost Basis*		*Total*
Commercial and industrial
Pass	$	36,409	$	191,806	$	116,433	$	56,163	$	30,781	$	72,289	$	122,299	$	626,180
Special mention		—		12		—		—		2,330		—		—		2,342
Substandard		—		1,332		11,498		3,416		577		10,831		2,205		29,859
Doubtful		—		—		—		—		—		65		—		65
Subtotal	$	36,409	$	193,150	$	127,931	$	59,579	$	33,688	$	83,185	$	124,504	$	658,446
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	169	$	—	$	169
CRE − Construction, land and development
Pass	$	4,271	$	134,716	$	145,354	$	29,385	$	1,546	$	1,596	$	2,677	$	319,545
Special mention		—		—		—		173		—		—		—		173
Substandard		—		8,073		—		31,758		—		175		300		40,306
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	4,271	$	142,789	$	145,354	$	61,316	$	1,546	$	1,771	$	2,977	$	360,024
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Multifamily
Pass	$	2,586	$	32,645	$	44,470	$	124,305	$	33,908	$	63,093	$	—	$	301,007
Special mention		—		—		—		32,968		—		973		—		33,941
Substandard		—		—		—		—		—		18,112		—		18,112
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	2,586	$	32,645	$	44,470	$	157,273	$	33,908	$	82,178	$	—	$	353,060
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Non-owner occupied
Pass	$	36,402	$	184,017	$	143,295	$	220,689	$	87,218	$	227,119	$	1,989	$	900,729
Special mention		—		5,695		5,423		—		13,405		1,074		—		25,597
Substandard		—		—		—		1,701		2,530		20,908		94		25,233
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	36,402	$	189,712	$	148,718	$	222,390	$	103,153	$	249,101	$	2,083	$	951,559
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Owner occupied
Pass	$	21,948	$	61,617	$	58,652	$	63,668	$	44,869	$	143,229	$	1,426	$	395,409
Special mention		—		451		—		—		—		4,575		—		5,026
Substandard		—		—		1,593		2,985		2,393		16,895		579		24,445
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	21,948	$	62,068	$	60,245	$	66,653	$	47,262	$	164,699	$	2,005	$	424,880
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural − Land
Pass	$	1,581	$	10,340	$	9,007	$	12,698	$	5,688	$	13,088	$	7,691	$	60,093
Special mention		—		69		624		3,372		—		—		—		4,065
Substandard		—		—		303		3,598		—		835		—		4,736
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	1,581	$	10,409	$	9,934	$	19,668	$	5,688	$	13,923	$	7,691	$	68,894
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural − Production
Pass	$	6,491	$	8,743	$	6,065	$	3,998	$	1,233	$	1,734	$	31,090	$	59,354
Special mention		—		445		133		—		—		445		414		1,437
Substandard		—		24		577		1,889		27		—		932		3,449
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	6,491	$	9,212	$	6,775	$	5,887	$	1,260	$	2,179	$	32,436	$	64,240
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate − First lien
Performing	$	5,830	$	45,798	$	139,237	$	225,539	$	247,642	$	240,955	$	—	$	905,001
Nonperforming		—		—		575		—		734		1,224		—		2,533
Subtotal	$	5,830	$	45,798	$	139,812	$	225,539	$	248,376	$	242,179	$	—	$	907,534
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	7	$	47	$	—	$	54
Residential real estate − Construction
Performing	$	2,993	$	22,838	$	5,578	$	1,208	$	1,256	$	—	$	—	$	33,873
Nonperforming		—		—		—		4,680		—		—		—		4,680
Subtotal	$	2,993	$	22,838	$	5,578	$	5,888	$	1,256	$	—	$	—	$	38,553
Gross charge-offs for the period ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate − HELOC
Performing	$	169	$	3,160	$	5,019	$	5,622	$	1,520	$	4,018	$	154,701	$	174,209
Nonperforming		—		—		35		1,100		—		226		30		1,391
Subtotal	$	169	$	3,160	$	5,054	$	6,722	$	1,520	$	4,244	$	154,731	$	175,600
Gross charge-offs for the period ended	$	—	$	—	$	—	$	250	$	—	$	—	$	—	$	250
Residential real estate − Junior lien
Performing	$	1,589	$	7,525	$	11,239	$	9,160	$	4,823	$	6,449	$	50	$	40,835
Nonperforming		—		1,775		—		—		107		1,023		—		2,905
Subtotal	$	1,589	$	9,300	$	11,239	$	9,160	$	4,930	$	7,472	$	50	$	43,740
Gross charge-offs for the period ended	$	—	$	—	$	—	$	300	$	—	$	—	$	—	$	300
Other consumer
Performing	$	3,515	$	5,882	$	4,144	$	4,335	$	410	$	5,562	$	15,031	$	38,879
Nonperforming		—		—		11		—		—		63		—		74
Subtotal	$	3,515	$	5,882	$	4,155	$	4,335	$	410	$	5,625	$	15,031	$	38,953
Gross charge-offs for the period ended	$	—	$	—	$	7	$	22	$	—	$	10	$	—	$	39
Total loans	$	123,784	$	726,963	$	709,265	$	844,410	$	482,997	$	856,556	$	341,508	$	4,085,483
Gross charge-offs for the period ended	$	—	$	—	$	7	$	572	$	7	$	226	$	—	$	812

													*Revolving*
(dollars in thousands)	*Term Loans Amortized Cost Basis by Origination Year*												*Loans Amortized*
As of December 31, 2024	*2024*		*2023*		*2022*		*2021*		*2020*		*Prior*		*Cost Basis*		*Total*
Commercial and industrial
Pass	$	209,001	$	141,028	$	61,254	$	34,645	$	38,342	$	36,136	$	111,194	$	631,600
Special mention		1,367		495		3,286		2,239		5,575		1		1,651		14,614
Substandard		—		12,663		220		780		3,154		2,447		1,198		20,462
Doubtful		—		—		—		—		—		51		—		51
Subtotal	$	210,368	$	154,186	$	64,760	$	37,664	$	47,071	$	38,635	$	114,043	$	666,727
Gross charge-offs for the year ended	$	—	$	218	$	2	$	397	$	2,768	$	342	$	—	$	3,727
CRE − Construction, land and development
Pass	$	97,244	$	112,845	$	40,890	$	1,560	$	517	$	1,187	$	2,801	$	257,044
Special mention		—		—		172		—		—		—		—		172
Substandard		5,406		—		31,585		—		—		170		300		37,461
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	102,650	$	112,845	$	72,647	$	1,560	$	517	$	1,357	$	3,101	$	294,677
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Multifamily
Pass	$	35,112	$	62,982	$	138,698	$	33,782	$	33,157	$	32,204	$	—	$	335,935
Special mention		—		—		7,644		272		1,241		—		—		9,157
Substandard		—		—		—		—		17,732		299		—		18,031
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	35,112	$	62,982	$	146,342	$	34,054	$	52,130	$	32,503	$	—	$	363,123
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Non-owner occupied
Pass	$	189,068	$	149,368	$	223,349	$	98,309	$	71,432	$	188,617	$	1,709	$	921,852
Special mention		—		—		1,694		8,603		—		4,148		4,195		18,640
Substandard		—		—		—		7,767		6,347		12,419		—		26,533
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	189,068	$	149,368	$	225,043	$	114,679	$	77,779	$	205,184	$	5,904	$	967,025
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Owner occupied
Pass	$	63,721	$	41,918	$	60,788	$	44,957	$	38,941	$	91,804	$	1,652	$	343,781
Special mention		451		—		—		937		2,981		2,735		—		7,104
Substandard		—		311		3,023		2,694		—		13,538		967		20,533
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	64,172	$	42,229	$	63,811	$	48,588	$	41,922	$	108,077	$	2,619	$	371,418
Gross charge-offs for the year ended	$	—	$	12	$	97	$	—	$	—	$	128	$	—	$	237
Agricultural − Land
Pass	$	10,496	$	8,864	$	14,369	$	5,840	$	5,103	$	8,473	$	120	$	53,265
Special mention		69		1,612		3,275		—		—		—		—		4,956
Substandard		—		303		2,166		—		609		—		—		3,078
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	10,565	$	10,779	$	19,810	$	5,840	$	5,712	$	8,473	$	120	$	61,299
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural − Production
Pass	$	10,445	$	6,440	$	4,356	$	724	$	1,121	$	582	$	34,527	$	58,195
Special mention		130		704		—		—		420		—		1,518		2,772
Substandard		—		—		1,987		—		—		54		—		2,041
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	10,575	$	7,144	$	6,343	$	724	$	1,541	$	636	$	36,045	$	63,008
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	26	$	—	$	26
Residential real estate − First lien
Performing	$	49,414	$	144,460	$	226,993	$	251,006	$	127,200	$	118,958	$	—	$	918,031
Nonperforming		—		576		—		744		12		1,656		—		2,988
Subtotal	$	49,414	$	145,036	$	226,993	$	251,750	$	127,212	$	120,614	$	—	$	921,019
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate − Construction
Performing	$	19,229	$	6,449	$	1,900	$	1,289	$	—	$	—	$	—	$	28,867
Nonperforming		—		—		4,680		—		—		—		—		4,680
Subtotal	$	19,229	$	6,449	$	6,580	$	1,289	$	—	$	—	$	—	$	33,547
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate − HELOC
Performing	$	3,290	$	5,558	$	6,217	$	1,622	$	939	$	2,717	$	140,707	$	161,050
Nonperforming		—		35		—		—		—		74		1,350		1,459
Subtotal	$	3,290	$	5,593	$	6,217	$	1,622	$	939	$	2,791	$	142,057	$	162,509
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	19	$	—	$	19
Residential real estate − Junior lien
Performing	$	7,762	$	11,557	$	9,553	$	4,990	$	2,760	$	4,178	$	50	$	40,850
Nonperforming		1,775		—		300		108		—		1,027		—		3,210
Subtotal	$	9,537	$	11,557	$	9,853	$	5,098	$	2,760	$	5,205	$	50	$	44,060
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	638	$	—	$	638
Other consumer
Performing	$	9,618	$	4,695	$	4,853	$	502	$	2,541	$	4,069	$	17,505	$	43,783
Nonperforming		—		11		272		—		7		49		—		339
Subtotal	$	9,618	$	4,706	$	5,125	$	502	$	2,548	$	4,118	$	17,505	$	44,122
Gross charge-offs for the year ended	$	4	$	2	$	—	$	31	$	6	$	8	$	—	$	51
Total loans	$	713,598	$	712,874	$	853,524	$	503,370	$	360,131	$	527,593	$	321,444	$	3,992,534
Gross charge-offs for the year ended	$	4	$	232	$	99	$	428	$	2,774	$	1,161	$	—	$	4,698

Past Due and Nonaccrual Loans

The Company closely monitors the performance of its loan portfolio. A loan is placed on nonaccrual status when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is reasonably assured. When one loan to a borrower is placed on nonaccrual status, all other loans to the borrower are re-evaluated to determine if they should also be placed on nonaccrual status. All previously accrued and unpaid interest is reversed at that time. A loan will return to accrual when collection of principal and interest is assured and the borrower has demonstrated timely payments of principal and interest for a reasonable period, generally at least six months.

The following tables present a past due aging analysis of total loans outstanding, by portfolio segment, as of March 31, 2025 and December 31, 2024:

	*March 31, 2025*
							*90 Days*
	*Accruing*		*30 - 59 Days*		*60 - 89 Days*		*or More*				*Total*
(dollars in thousands)	*Current*		*Past Due*		*Past Due*		*Past Due*		*Nonaccrual*		*Loans*
Commercial
Commercial and industrial	$	646,332	$	9,159	$	—	$	—	$	2,955	$	658,446
Commercial real estate
Construction, land and development		327,138		175		—		—		32,711		360,024
Multifamily		353,060		—		—		—		—		353,060
Non-owner occupied		951,559		—		—		—		—		951,559
Owner occupied		421,567		1,296		—		—		2,017		424,880
Total commercial real estate		2,053,324		1,471		—		—		34,728		2,089,523
Agricultural
Land		68,115		—		180		—		599		68,894
Production		63,171		417		—		—		652		64,240
Total agricultural		131,286		417		180		—		1,251		133,134
Total commercial		2,830,942		11,047		180		—		38,934		2,881,103
Consumer
Residential real estate
First lien		903,810		1,191		—		—		2,533		907,534
Construction		33,873		—		—		—		4,680		38,553
HELOC		173,919		290		—		—		1,391		175,600
Junior lien		40,636		188		11		—		2,905		43,740
Total residential real estate		1,152,238		1,669		11		—		11,509		1,165,427
Other consumer		38,787		73		19		—		74		38,953
Total consumer		1,191,025		1,742		30		—		11,583		1,204,380
Total	$	4,021,967	$	12,789	$	210	$	—	$	50,517	$	4,085,483

	*December 31, 2024*
							*90 Days*
	*Accruing*		*30 - 59 Days*		*60 - 89 Days*		*or More*				*Total*
(dollars in thousands)	*Current*		*Past Due*		*Past Due*		*Past Due*		*Nonaccrual*		*Loans*
Commercial
Commercial and industrial	$	654,073	$	903	$	133	$	8,400	$	3,218	$	666,727
Commercial real estate
Construction, land and development		264,633		—		—		—		30,044		294,677
Multifamily		363,123		—		—		—		—		363,123
Non-owner occupied		961,808		—		—		—		5,217		967,025
Owner occupied		369,176		225		—		—		2,017		371,418
Total commercial real estate		1,958,740		225		—		—		37,278		1,996,243
Agricultural
Land		60,690		—		—		—		609		61,299
Production		62,269		87		—		—		652		63,008
Total agricultural		122,959		87		—		—		1,261		124,307
Total commercial		2,735,772		1,215		133		8,400		41,757		2,787,277
Consumer
Residential real estate
First lien		915,167		2,104		707		53		2,988		921,019
Construction		28,867		—		—		—		4,680		33,547
HELOC		160,430		169		450		—		1,460		162,509
Junior lien		40,454		396		—		—		3,210		44,060
Total residential real estate		1,144,918		2,669		1,157		53		12,338		1,161,135
Other consumer		43,651		103		30		—		338		44,122
Total consumer		1,188,569		2,772		1,187		53		12,676		1,205,257
Total	$	3,924,341	$	3,987	$	1,320	$	8,453	$	54,433	$	3,992,534

In calculating expected credit losses, the Company includes loans on nonaccrual status and loans 90 days or more past due and still accruing. The following tables present the amortized cost basis on nonaccrual status loans and loans 90 days or more past due and still accruing as of March 31, 2025 and December 31, 2024:

	*As of March 31, 2025*
					*90 Days*
	*Nonaccrual*				*or More*
	*with no Allowance*				*Past Due*
(dollars in thousands)	*for Credit Losses*		*Nonaccrual*		*and Accruing*
Commercial
Commercial and industrial	$	2,885	$	2,955	$	—
Commercial real estate
Construction, land and development		24,638		32,711		—
Multifamily		—		—		—
Non-owner occupied		—		—		—
Owner occupied		1,706		2,017		—
Total commercial real estate		26,344		34,728		—
Agricultural
Land		599		599		—
Production		—		652		—
Total agricultural		599		1,251		—
Total commercial		29,828		38,934		—
Consumer
Residential real estate
First lien		2,128		2,533		—
Construction		4,680		4,680		—
HELOC		1,272		1,391		—
Junior lien		2,697		2,905		—
Total residential real estate		10,777		11,509		—
Other consumer		—		74		—
Total consumer		10,777		11,583		—
Total	$	40,605	$	50,517	$	—

	*December 31, 2024*
					*90 Days*
	*Nonaccrual*				*or More*
	*with no Allowance*				*Past Due*
(dollars in thousands)	*for Credit Losses*		*Nonaccrual*		*and Accruing*
Commercial
Commercial and industrial	$	2,952	$	3,218	$	8,400
Commercial real estate
Construction, land and development		24,638		30,044		—
Multifamily		—		—		—
Non-owner occupied		5,217		5,217		—
Owner occupied		1,706		2,017		—
Total commercial real estate		31,561		37,278		—
Agricultural
Land		609		609		—
Production		652		652		—
Total agricultural		1,261		1,261		—
Total commercial		35,774		41,757		8,400
Consumer
Residential real estate
First lien		2,614		2,988		53
Construction		4,680		4,680		—
HELOC		—		1,460		—
Junior lien		2,696		3,210		—
Total residential real estate		9,990		12,338		53
Other consumer		—		338		—
Total consumer		9,990		12,676		53
Total	$	45,764	$	54,433	$	8,453

Interest income that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the three months ended March 31, 2025 and 2024, is estimated to have been $1.1 million and $0.7 million, respectively.

The Company’s policy is to reverse previously recorded interest income when a loan is placed on nonaccrual status. As a result, the Company did not record any interest income on its nonaccrual loans for the three months ended March 31, 2025 or 2024. At March 31, 2025 and December 31, 2024, total accrued interest receivable on loans, which had been excluded from reported amortized cost basis on loans, was $17.0 million and $16.4 million, respectively, and was reported within accrued interest receivable on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date.

In cases where a borrower experiences financial difficulty, the Company may make certain concessions for which the terms of the loan are modified. Loans experiencing financial difficulty can include modifications for an interest rate reduction below current market rates, a forgiveness of principal balance, an extension of the loan term, an-other than significant payment delay, or some combination of similar types of modifications. During both the three months ended March 31, 2025 and 2024, the Company did not provide any modifications to loans under these circumstances that were experiencing financial difficulty.

The following tables present the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans, as of March 31, 2025 and December 31, 2024:

	*As of March 31, 2025*
	*Primary Type of Collateral*
									*Allowance for*
(dollars in thousands)	*Real estate*		*Equipment*		*Other*		*Total*		*Credit Losses*
Commercial
Commercial and industrial	$	2,885	$	—	$	—	$	2,885	$	—
Commercial real estate
Construction, land and development		32,711		—		—		32,711		4,984
Multifamily		—		—		—		—		—
Non-owner occupied		—		—		—		—		—
Owner occupied		1,936		—		—		1,936		9
Total commercial real estate		34,647		—		—		34,647		4,993
Agricultural
Land		599		—		—		599		—
Production		—		652		—		652		384
Total agricultural		599		652		—		1,251		384
Total commercial		38,131		652		—		38,783		5,377
Consumer
Residential real estate
First lien		2,195		—		—		2,195		—
Construction		4,680		—		—		4,680		—
HELOC		1,270		—		—		1,270		—
Junior lien		2,804		—		—		2,804		30
Total residential real estate		10,949		—		—		10,949		30
Other consumer		—		—		10		10		3
Total consumer		10,949		—		10		10,959		33
Total	$	49,080	$	652	$	10	$	49,742	$	5,410

	*As of December 31, 2024*
	*Primary Type of Collateral*
									*Allowance for*
(dollars in thousands)	*Real estate*		*Equipment*		*Other*		*Total*		*Credit Losses*
Commercial
Commercial and industrial	$	2,885	$	275	$	—	$	3,160	$	4
Commercial real estate
Construction, land and development		30,044		—		—		30,044		4,984
Multifamily		—		—		—		—		—
Non-owner occupied		5,217		—		—		5,217		—
Owner occupied		1,936		—		—		1,936		9
Total commercial real estate		37,197		—		—		37,197		4,993
Agricultural
Land		609		—		—		609		—
Production		—		652		—		652		—
Total agricultural		609		652		—		1,261		—
Total commercial		40,691		927		—		41,618		4,997
Consumer
Residential real estate
First lien		2,514		—		—		2,514		7
Construction		4,680		—		—		4,680		—
HELOC		1,366		—		—		1,366		252
Junior lien		3,105		—		—		3,105		330
Total residential real estate		11,665		—		—		11,665		589
Other consumer		—		—		289		289		50
Total consumer		11,665		—		289		11,954		639
Total	$	52,356	$	927	$	289	$	53,572	$	5,636

Collateral dependent loans are loans for which the repayment is expected to be provided substantially by the underlying collateral when there are no other available and reliable sources of repayment.