The Company maintains an allowance for credit losses to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management’s judgment, should be charged against the allowance. A provision for credit losses is taken based on management’s ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control.

The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along with current and forecasted economic conditions that may affect borrowers’ ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default (“PD/LGD”) model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification status or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a default rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee’s Summary of Economic Projections, and other environmental factors based on the risks present for each portfolio segment. These environmental factors include consideration of the following: levels of, and trends in, delinquencies and nonperforming loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover probable losses inherent in the loan portfolio.

Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other and a consensus is reached by credit administration and the loan officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer’s cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring.

Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool’s probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool, which is updated at least annually. The historical loss rates are supplemented with consideration of economic conditions and portfolio trends.

Due to the imprecise nature of estimating the allowance for credit losses, the Company’s allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company’s judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income.


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended June 30, 2025
Beginning balance, April 1	$	52,302	$	30,468	$	3,500	$	723	$	3,464	$	1,517	$	459	$	92,433
Provision for credit losses	2,148		588		(201)		(3)		294		233		(59)		3,000
Loans charged-off	(28,616)		0		0		0		(198)		(297)		0		(29,111)
Recoveries	48		26		0		0		30		126		0		230
Net loans (charged-off) recovered	(28,568)		26		0		0		(168)		(171)		0		(28,881)
Ending balance	$	25,882	$	31,082	$	3,299	$	720	$	3,590	$	1,579	$	400	$	66,552


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended June 30, 2024
Beginning balance, April 1	$	30,720	$	32,078	$	4,112	$	1,022	$	3,518	$	1,229	$	501	$	73,180
Provision for credit losses	8,412		422		(444)		(202)		68		326		(102)		8,480
Loans charged-off	(12)		(840)		0		0		(22)		(202)		0		(1,076)
Recoveries	41		27		0		0		22		37		0		127
Net loans (charged-off) recovered	29		(813)		0		0		0		(165)		0		(949)
Ending balance	$	39,161	$	31,687	$	3,668	$	820	$	3,586	$	1,390	$	399	$	80,711


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Six Months Ended June 30, 2025
Beginning balance, January 1	$	45,539	$	30,865	$	3,541	$	743	$	3,358	$	1,531	$	383	$	85,960
Provision for credit losses	8,889		165		(242)		(23)		418		576		17		9,800
Loans charged-off	(28,626)		0		0		0		(222)		(771)		0		(29,619)
Recoveries	80		52		0		0		36		243		0		411
Net loans (charged-off) recovered	(28,546)		52		0		0		(186)		(528)		0		(29,208)
Ending balance	$	25,882	$	31,082	$	3,299	$	720	$	3,590	$	1,579	$	400	$	66,552


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Six Months Ended June 30, 2024
Beginning balance, January 1	$	30,338	$	31,335	$	4,150	$	1,129	$	3,474	$	1,174	$	372	$	71,972
Provision for credit losses	8,954		1,139		(482)		(309)		89		582		27		10,000
Loans charged-off	(206)		(840)		0		0		(22)		(512)		0		(1,580)
Recoveries	75		53		0		0		45		146		0		319
Net loans (charged-off) recovered	(131)		(787)		0		0		23		(366)		0		(1,261)
Ending balance	$	39,161	$	31,687	$	3,668	$	820	$	3,586	$	1,390	$	399	$	80,711

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000.


(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	4,239	$	1,502	$	89	$	1,459	$	1,151	$	461	$	8,901	$	603,003	$	611,904
Special Mention	0		0		998		0		0		0		998		61,286		62,284
Substandard	0		0		997		928		0		440		2,365		26,377		28,742
Doubtful	0		0		3,015		11,387		0		0		14,402		0		14,402

Total	4,239		1,502		5,099		13,774		1,151		901		26,666		690,666		717,332
Working capital lines of credit loans:
Current period gross write offs	0		0		0		28,607		0		0		28,607		0		28,607
Non-working capital loans:
Pass	72,372		146,835		120,383		135,305		47,709		38,661		561,265		178,375		739,640
Special Mention	874		7,525		2,225		5,510		1,351		729		18,214		3,565		21,779
Substandard	750		334		2,136		1,582		105		3,937		8,844		397		9,241
Doubtful	0		0		0		0		21		356		377		0		377
Not Rated	930		1,127		1,412		885		211		247		4,812		0		4,812
Total	74,926		155,821		126,156		143,282		49,397		43,930		593,512		182,337		775,849
Non-working capital loans:
Current period gross write offs	0		0		0		0		0		0		0		19		19
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	15,895		40,907		18,467		24,912		742		0		100,923		449,374		550,297
Special Mention	1,241		0		0		0		0		0		1,241		0		1,241



Total	17,136		40,907		18,467		24,912		742		0		102,164		449,374		551,538
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	48,617		99,830		122,703		118,043		135,435		197,181		721,809		33,417		755,226
Special Mention	300		110		2,454		15,304		0		2,992		21,160		0		21,160
Substandard	0		312		304		0		1,349		1,450		3,415		0		3,415


Total	48,917		100,252		125,461		133,347		136,784		201,623		746,384		33,417		779,801
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0


(dollars in thousands)	2025	2024	2023	2022	2021	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Pass	55,336	156,084	110,047	139,854	102,631	164,575	728,527	126,495	855,022
Special Mention	0	0	11,504	105	0	0	11,609	1,954	13,563



Total	55,336	156,084	121,551	139,959	102,631	164,575	740,136	128,449	868,585
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	147,649	55,336	108,213	21,660	31,984	33,579	398,421	78,817	477,238
Special Mention	0	0	0	299	0	0	299	0	299



Total	147,649	55,336	108,213	21,959	31,984	33,579	398,720	78,817	477,537
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	11,957	14,062	17,240	32,496	21,316	36,425	133,496	14,871	148,367
Special Mention	2,000	122	201	0	42	148	2,513	0	2,513
Substandard	0	0	0	0	0	61	61	0	61


Total	13,957	14,184	17,441	32,496	21,358	36,634	136,070	14,871	150,941
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	1,390	15,238	23,492	19,922	22,842	14,113	96,997	84,405	181,402
Special Mention	0	0	676	272	0	7	955	6,222	7,177
Substandard	0	0	0	13	0	0	13	0	13


Total	1,390	15,238	24,168	20,207	22,842	14,120	97,965	90,627	188,592
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	4,191	7,110	16,317	28,270	3,007	14,986	73,881	19,654	93,535
Special Mention	0	0	0	0	0	1,813	1,813	0	1,813



Total	4,191	7,110	16,317	28,270	3,007	16,799	75,694	19,654	95,348
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0


(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Consumer 1-4 family mortgage loans (continued):
Closed end first mortgage loans:
Pass	7,637		11,272		7,872		8,549		10,768		8,815		54,913		6,706		61,619
Special Mention	191		120		221		161		63		0		756		0		756
Substandard	24		0		238		451		89		586		1,388		0		1,388

Not Rated	17,614		28,363		52,127		45,757		31,336		33,964		209,161		0		209,161
Total	25,466		39,755		60,458		54,918		42,256		43,365		266,218		6,706		272,924
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		24		24		0		24
Open end and junior lien loans:
Pass	123		549		713		0		205		5		1,595		9,264		10,859
Special Mention	0		0		0		0		0		298		298		0		298
Substandard	0		0		102		0		9		0		111		78		189

Not Rated	14,168		16,331		12,748		13,993		3,079		1,489		61,808		155,040		216,848
Total	14,291		16,880		13,563		13,993		3,293		1,792		63,812		164,382		228,194
Open end and junior lien loans:
Current period gross write offs	0		0		0		29		2		22		53		145		198
Residential construction loans:




Not Rated	1,616		9,137		722		1,738		1,335		2,028		16,576		0		16,576
Total	1,616		9,137		722		1,738		1,335		2,028		16,576		0		16,576
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	295		0		955		152		36		0		1,438		21,596		23,034
Special Mention	0		0		0		475		0		105		580		0		580
Substandard	0		98		110		90		18		15		331		0		331

Not Rated	11,859		19,344		18,165		9,661		5,299		4,259		68,587		11,078		79,665
Total	12,154		19,442		19,230		10,378		5,353		4,379		70,936		32,674		103,610
Other consumer loans:
Current period gross write offs	1		139		181		8		58		0		387		384		771

Total Loans	$	421,268	$	631,648	$	656,846	$	639,233	$	422,133	$	563,725	$	3,334,853	$	1,891,974	$	5,226,827

Total period gross write offs	$	1	$	139	$	181	$	28,644	$	60	$	46	$	29,071	$	548	$	29,619


(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	1,599	$	114	$	1,640	$	1,647	$	651	$	0	$	5,651	$	525,179	$	530,830
Special Mention	0		0		0		0		0		0		0		48,301		48,301
Substandard	0		0		933		0		195		219		1,347		25,878		27,225
Doubtful	0		3,090		39,994		0		0		0		43,084		0		43,084

Total	1,599		3,204		42,567		1,647		846		219		50,082		599,358		649,440
Working capital lines of credit loans:
Current period gross write offs	0		0		94		0		0		0		94		136		230
Non-working capital loans:
Pass	151,920		157,276		173,274		58,591		32,909		28,582		602,552		164,106		766,658
Special Mention	3,901		2,614		2,024		1,637		393		1,894		12,463		6,491		18,954
Substandard	0		2,986		1,598		107		4,142		584		9,417		406		9,823
Doubtful	0		0		0		21		386		0		407		0		407
Not Rated	1,297		1,657		1,149		395		395		23		4,916		0		4,916
Total	157,118		164,533		178,045		60,751		38,225		31,083		629,755		171,003		800,758
Non-working capital loans:
Current period gross write offs	0		383		0		542		179		44		1,148		237		1,385
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	23,264		69,737		43,228		2,566		0		0		138,795		426,577		565,372
Special Mention	603		0		0		0		0		0		603		0		603



Total	23,867		69,737		43,228		2,566		0		0		139,398		426,577		565,975
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	98,847		138,299		120,191		143,642		109,451		129,051		739,481		35,003		774,484
Special Mention	6,295		2,728		14,777		0		619		2,488		26,907		0		26,907
Substandard	318		318		0		3,101		1,457		0		5,194		0		5,194


Total	105,460		141,345		134,968		146,743		111,527		131,539		771,582		35,003		806,585
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		840		840		0		840


(dollars in thousands)	2024	2023	2022	2021	2020	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Pass	152,963	118,517	168,387	101,064	119,612	77,497	738,040	110,441	848,481
Special Mention	0	15,650	108	5,868	0	0	21,626	1,895	23,521



Total	152,963	134,167	168,495	106,932	119,612	77,497	759,666	112,336	872,002
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	70,497	61,679	11,708	52,995	29,177	9,794	235,850	108,486	344,336
Special Mention	0	0	307	0	0	0	307	0	307



Total	70,497	61,679	12,015	52,995	29,177	9,794	236,157	108,486	344,643
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	14,574	21,241	29,601	23,043	25,192	18,312	131,963	24,249	156,212
Special Mention	122	209	0	0	0	0	331	0	331
Substandard	0	0	0	0	0	71	71	0	71


Total	14,696	21,450	29,601	23,043	25,192	18,383	132,365	24,249	156,614
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	15,945	26,704	21,611	24,374	21,446	1,450	111,530	118,090	229,620
Special Mention	0	0	0	0	0	0	0	1,275	1,275



Total	15,945	26,704	21,611	24,374	21,446	1,450	111,530	119,365	230,895
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	6,639	17,137	29,985	3,397	11,310	5,544	74,012	19,609	93,621
Special Mention	0	0	0	0	0	1,872	1,872	0	1,872



Total	6,639	17,137	29,985	3,397	11,310	7,416	75,884	19,609	95,493
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans:
Pass	11,104	8,511	9,274	11,278	6,252	4,685	51,104	4,299	55,403


(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Closed end first mortgage loans (continued):
Special Mention	122		226		165		66		0		0		579		0		579
Substandard	0		83		319		90		0		629		1,121		0		1,121

Not Rated	28,706		55,641		47,355		34,173		13,543		22,396		201,814		0		201,814
Total	39,932		64,461		57,113		45,607		19,795		27,710		254,618		4,299		258,917
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Open end and junior lien loans:
Pass	574		738		0		438		0		5		1,755		10,090		11,845
Special Mention	0		0		0		0		309		0		309		0		309
Substandard	0		104		0		15		0		81		200		118		318

Not Rated	21,929		16,134		18,053		4,660		644		2,894		64,314		139,351		203,665
Total	22,503		16,976		18,053		5,113		953		2,980		66,578		149,559		216,137
Open end and junior lien loans:
Current period gross write offs	0		0		79		0		0		0		79		15		94
Residential construction loans:




Not Rated	10,030		1,154		2,045		1,386		759		1,348		16,722		0		16,722
Total	10,030		1,154		2,045		1,386		759		1,348		16,722		0		16,722
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	79		971		234		109		0		0		1,393		20,742		22,135
Special Mention	0		0		475		0		157		0		632		0		632
Substandard	0		128		54		76		17		0		275		0		275

Not Rated	23,508		22,250		11,824		6,688		3,743		1,782		69,795		10,930		80,725
Total	23,587		23,349		12,587		6,873		3,917		1,782		72,095		31,672		103,767
Other consumer loans:
Current period gross write offs	49		303		236		33		0		26		647		272		919

Total loans	$	644,836	$	745,896	$	750,313	$	481,427	$	382,759	$	311,201	$	3,316,432	$	1,801,516	$	5,117,948

Total current period gross write offs	$	49	$	686	$	409	$	575	$	179	$	910	$	2,808	$	660	$	3,468

The Company does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured.


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	698,277	$	45	$	0	$	698,322	$	19,010	$	445	$	717,332
Non-working capital loans	767,767		180		0		767,947		7,902		143		775,849
Commercial real estate and multi-family residential loans:
Construction and land development loans	551,538		0		0		551,538		0		0		551,538
Owner occupied loans	778,048		0		0		778,048		1,753		0		779,801
Nonowner occupied loans	868,585		0		0		868,585		0		0		868,585
Multifamily loans	477,537		0		0		477,537		0		0		477,537
Agri-business and agricultural loans:
Loans secured by farmland	150,880		0		0		150,880		61		0		150,941
Loans for agricultural production	188,579		0		0		188,579		13		13		188,592
Other commercial loans	95,348		0		0		95,348		0		0		95,348
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	271,020		509		7		271,536		1,388		625		272,924
Open end and junior lien loans	227,548		457		0		228,005		189		189		228,194
Residential construction loans	16,576		0		0		16,576		0		0		16,576
Other consumer loans	102,819		460		0		103,279		331		6		103,610
Total	$	5,194,522	$	1,651	$	7	$	5,196,180	$	30,647	$	1,421	$	5,226,827

The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2024 by class of loans and loans past due 90 days or more and still accruing by class of loan:


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	603,016	$	1,082	$	0	$	604,098	$	45,342	$	594	$	649,440
Non-working capital loans	792,577		663		3		793,243		7,515		37		800,758
Commercial real estate and multi-family residential loans:
Construction and land development loans	565,975		0		0		565,975		0		0		565,975
Owner occupied loans	804,810		0		0		804,810		1,775		318		806,585
Nonowner occupied loans	872,002		0		0		872,002		0		0		872,002
Multifamily loans	344,643		0		0		344,643		0		0		344,643
Agri-business and agricultural loans:
Loans secured by farmland	156,543		0		0		156,543		71		0		156,614
Loans for agricultural production	230,895		0		0		230,895		0		0		230,895
Other commercial loans	95,493		0		0		95,493		0		0		95,493
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	256,486		1,284		26		257,796		1,121		665		258,917
Open end and junior lien loans	215,505		314		0		215,819		318		318		216,137
Residential construction loans	16,722		0		0		16,722		0		0		16,722
Other consumer loans	102,565		927		0		103,492		275		17		103,767
Total	$	5,057,232	$	4,270	$	29	$	5,061,531	$	56,417	$	1,949	$	5,117,948

When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value.


	June 30, 2025
(dollars in thousands)	Real Estate		General Business Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	234	$	38,025	$	445	$	38,704
Non-working capital loans	57		8,170		8		8,235
Commercial real estate and multi-family residential loans:
Owner occupied loans	312		1,753		0		2,065

Agri-business and agricultural loans:
Loans secured by farmland	0		61		0		61
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,388		0		0		1,388
Open end and junior lien loans	190		0		0		190

Other consumer loans	0		0		254		254
Total	$	2,181	$	48,009	$	707	$	50,897


	December 31, 2024
(dollars in thousands)	Real Estate		General Business Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	50	$	64,023	$	447	$	64,520
Non-working capital loans	1,891		6,585		19		8,495
Commercial real estate and multi-family residential loans:
Owner occupied loans	318		3,512		0		3,830

Agri-business and agricultural loans:
Loans secured by farmland	0		71		0		71
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,121		0		0		1,121
Open end and junior lien loans	318		0		0		318
Other consumer loans	0		0		272		272
Total	$	3,698	$	74,191	$	738	$	78,627

The allowance for credit losses incorporates an estimate of lifetime expected credit losses using historical loss information. The Company uses a probability of default/loss given default model to determine an estimate which is recorded for each asset upon origination. Occasionally, the Company has reason to modify certain terms of loans for borrowers experiencing financial distress by providing the following forms of relief: forgiveness of loan principal, extension of repayment terms, interest rate reduction or an other than insignificant payment delay. The Company can make any or all of these types of concessions as part of such modifications. Since an estimate for historical losses is already included as a component of the allowance for credit losses, a change to the allowance for credit losses is generally not recorded at the time of such modifications unless the loan is individually analyzed and the modification changes the specific reserve allocation. In the event forgiveness of principal is provided, the amount of the forgiveness is charged off against the allowance for credit losses.