Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2025

Receivables [Abstract]

Loans by Type as Percentage of Portfolio

Loans by type as a percentage of the portfolio were as follows:


	June 30, 2025							December 31, 2024
(Dollars in thousands)	Balance			%				Balance			%				Percent Increase (Decrease)
Agricultural	$	47,273			1.6	%		$	48,221			3.1	%			(2.0	)	%
Commercial and Industrial		351,367			12.0	%			228,256			14.8	%			53.9		%
Commercial Real Estate		1,743,541			59.7	%			901,130			58.3	%			93.5		%
Consumer		29,741			1.0	%			29,412			1.9	%			1.1		%
Construction Real Estate		21,508			0.7	%			17,042			1.1	%			26.2		%
Residential Real Estate		724,329			24.8	%			281,701			18.2	%			157.1		%
Loans to Other Financial Institutions		3,033			0.1	%			39,878			2.6	%			(92.4	)	%
Gross Loans	$	2,920,792						$	1,545,640

Allowance for credit losses		34,798			1.19	%			16,552			1.07	%

Net loans	$	2,885,994						$	1,529,088

Allowance for Credit Losses and Balances in Loan Portfolio

Activity in the allowance for credit losses and balances in the loan portfolio were as follows:


						Commercial																				Loans to Other
(Dollars in thousands)						And								Commercial				Construction				Residential				Financial
		Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Institutions				Total
Allowance for Credit Losses Three Months Ended June 30, 2025
Beginning balance		$	220			$	5,503			$	703			$	20,727			$	90			$	7,320			$	4			$	34,567
Charge-offs			-				(10	)			(259	)			(208	)			-				(30	)			-				(507	)
Recoveries			-				4				82				-				-				3				-				89
Provision			(1	)			(257	)			247				(2,208	)			-				2,868				1				650
Ending balance		$	219			$	5,240			$	773			$	18,311			$	90			$	10,161			$	5			$	34,798

Allowance for Credit Losses Six Months Ended June 30, 2025
Beginning balance		$	90			$	2,260			$	733			$	9,460			$	59			$	3,890			$	60			$	16,552
Acquisition related allowance for credit loss (PCD)			2				2,963				-				1,791				-				168				-				4,924
Charge-offs			-				(10	)			(392	)			(208	)			-				(52	)			-				(662	)
Recoveries			-				6				142				-				-				23				-				171
Provision			127				21				289				7,268				31				6,132				(55	)			13,813
Ending balance		$	219			$	5,240			$	773			$	18,311			$	90			$	10,161			$	5			$	34,798

Individually evaluated for credit loss		$	-			$	2,920			$	-			$	637			$	2			$	57			$	-			$	3,616

Collectively evaluated for credit loss		$	219			$	2,320			$	773			$	17,673			$	88			$	10,104			$	5			$	31,182


Loans
June 30, 2025
Individually evaluated for credit loss		$	6			$	8,287			$	—			$	3,776			$	229			$	3,006			$	-			$	15,304
Collectively evaluated for credit loss			47,267				343,080				29,741				1,739,765				21,279				721,323				3,033				2,905,488
Ending loan balance		$	47,273			$	351,367			$	29,741			$	1,743,541			$	21,508			$	724,329			$	3,033			$	2,920,792


					Commercial																				Loans to Other
(Dollars in thousands)					and								Commercial				Construction				Residential				Financial
	Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Institutions				Total
Allowance for Credit Losses
December 31, 2024
Ending balance	$	90			$	2,260			$	733			$	9,460			$	59			$	3,890			$	60			$	16,552

Loans
December 31, 2024
Ending loan balance	$	48,221			$	228,256			$	29,412			$	901,130			$	17,042			$	281,701			$	39,878			$	1,545,640


					Commercial
(Dollars in thousands)					and								Commercial				Construction				Residential				Loans to Other
	Agricultural				Industrial				Consumer				Real Estate				Real Estate				Real Estate				Financial Institution				Unallocated				Total
Allowance for Credit Losses Three Months Ended June 30, 2024
Beginning balance	$	97			$	2,243			$	918			$	9,167			$	49			$	3,513			$	50			$	-			$	16,037
Charge-offs		-				-				(328	)			-				-				-				-				-				(328	)
Recoveries		-				2				166				-				-				3				-				-				171
Provision		15				(84	)			39				194				-				108				-				-				272
Ending balance	$	112			$	2,161			$	795			$	9,361			$	49			$	3,624			$	50			$	-			$	16,152

Allowance for Credit Losses Six Months Ended June 30, 2024
Beginning balance	$	94			$	2,216			$	823			$	8,820			$	58			$	3,644			$	30.00			$	-			$	15,685
Charge-offs		-				(1	)			(451	)			-				-				-				-				-				(452	)
Recoveries		-				11				226				-				-				7				-				-				244
Provision		18				(65	)			197				541				(9	)			(27	)			20				-				675
Ending balance	$	112			$	2,161			$	795			$	9,361			$	49			$	3,624			$	50			$	-			$	16,152

Individually evaluated for credit loss	$	1			$	7			$	-			$	1			$	-			$	78			$	-			$	-			$	87

Collectively evaluated for credit loss	$	111			$	2,154			$	795			$	9,360			$	49			$	3,546			$	50			$	-			$	16,065

Schedule of outstanding balance and related allowance on loans

The outstanding balance and related allowance on PCD loans as of March 1, 2025 (the acquisition date) and June 30, 2025 is as follows (in thousands):


		As of June 30, 2025								As of March 1, 2025
		Loan Balance				ACL Balance				Loan Balance				ACL Balance
(dollars in thousands)
Agricultural		$	461			$	2			$	611			$	2
Commercial and Industrial			11,887				2,953				13,572				2,960
Commercial Real Estate			67,651				1,408				79,444				1,791
Consumer			17				-				32				0
Residential Real Estate			18,665				167				19,252				171
Total		$	98,681			$	4,530			$	112,911			$	4,924

Schedule of Information Regarding Credit Exposure

The following table reflects the amortized cost basis of loans as of June 30, 2025 based on year of origination (dollars in thousands):


Commercial:	2025				2024				2023				2022				2021				Prior				Term Loans Total				Revolving Loans				Grand Total
Agricultural
Pass	$	3,026			$	4,264			$	2,018			$	3,769			$	5,068			$	19,238			$	37,383			$	9,550			$	46,933
Special mention		-				-				-				-				-				161				161				-				161
Substandard		-				-				-				-				-				179				179				-				179
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	3,026			$	4,264			$	2,018			$	3,769			$	5,068			$	19,578			$	37,723			$	9,550			$	47,273
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Commercial and Industrial
Pass	$	25,225			$	47,641			$	22,494			$	40,894			$	14,719			$	27,556			$	178,529			$	163,693			$	342,222
Special mention		-				-				-				175				172				115				462				-				462
Substandard		-				469				4,838				49				1,525				1,802				8,683				-				8,683
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	25,225			$	48,110			$	27,332			$	41,118			$	16,416			$	29,473			$	187,674			$	163,693			$	351,367
Current year-to-date gross write-offs (1)	$	-			$	-			$	10			$	-			$	-			$	-			$	10			$	-			$	10

Commercial Real Estate
Pass	$	109,106			$	185,770			$	166,067			$	352,158			$	242,282			$	442,631			$	1,498,014			$	211,264			$	1,709,278
Special mention		-				-				214				15,579				1,572				9,501				26,866				-				26,866
Substandard		-				111				1,749				1,304				-				4,233				7,397				-				7,397
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	109,106			$	185,881			$	168,030			$	369,041			$	243,854			$	456,365			$	1,532,277			$	211,264			$	1,743,541
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	108			$	-			$	100			$	208			$	-			$	208

Total Commercial Loans	$	137,357			$	238,255			$	197,380			$	413,928			$	265,338			$	505,416			$	1,757,674			$	384,507			$	2,142,181


Retail:	2025				2024				2023				2022				2021				Prior				Term Loans Total				Revolving Loans				Grand Total
Consumer
Performing	$	4,012			$	5,074			$	5,978			$	7,195			$	3,755			$	2,658			$	28,672			$	1,031			$	29,703
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				1				-				-				28				9				38				-				38
Total	$	4,012			$	5,075			$	5,978			$	7,195			$	3,783			$	2,667			$	28,710			$	1,031			$	29,741
Current year-to-date gross write-offs (1)	$	4			$	23			$	76			$	11			$	6			$	6			$	126			$	-			$	126

Construction real estate
Performing	$	252			$	1,249			$	-			$	-			$	511			$	-			$	2,012			$	19,267			$	21,279
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				229				229
Total	$	252			$	1,249			$	-			$	-			$	511			$	-			$	2,012			$	19,496			$	21,508
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Residential real estate
Performing	$	29,919			$	57,568			$	67,074			$	167,796			$	113,584			$	168,236			$	604,177			$	112,176			$	716,353
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				62				531				2,991				1,711				2,361				7,656				320				7,976
Total	$	29,919			$	57,630			$	67,605			$	170,787			$	115,295			$	170,597			$	611,833			$	112,496			$	724,329
Current year-to-date gross write-offs (1)	$	-			$	-			$	17			$	4			$	30			$	1			$	52			$	-			$	52

Loans to Other Financial Institutions
Performing	$	3,033			$	-			$	-			$	-			$	-			$	-			$	3,033			$	-			$	3,033
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	3,033			$	-			$	-			$	-			$	-			$	-			$	3,033			$	-			$	3,033
Current year-to-date gross write-offs (1)	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Retail Loans	$	37,216			$	63,954			$	73,583			$	177,982			$	119,589			$	173,264			$	645,588			$	133,023			$	778,611

(1) It is noted that write-offs in the tables above do not include checking account write-offs. Checking account write-offs during the first six months of 2025 were $266,000 or an annualized $532,000 compared to $607,000 during the full year 2024.

The following table reflects the amortized cost basis of loans as of December 31, 2024 based on year of origination (dollars in thousands):


Commercial:	2024				2023				2022				2021				2020				Prior				Term Loans Total				Revolving Loans				Grand Total
Agricultural
Pass	$	7,669			$	1,729			$	2,998			$	2,867			$	1,545			$	18,573			$	35,381			$	12,666			$	48,047
Special mention		-				-				-				-				-				174				174				-				174
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	7,669			$	1,729			$	2,998			$	2,867			$	1,545			$	18,747			$	35,555			$	12,666			$	48,221
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Commercial and Industrial
Pass	$	40,184			$	17,481			$	30,769			$	14,659			$	6,100			$	10,110			$	119,303			$	108,656			$	227,959
Special mention		-								84				14				24				174				296				-				296
Substandard		-				-				-				-				-				1				1				-				1
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	40,184			$	17,481			$	30,853			$	14,673			$	6,124			$	10,285			$	119,600			$	108,656			$	228,256
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	7			$	7			$	-			$	7

Commercial Real Estate
Pass	$	150,126			$	140,105			$	120,517			$	99,381			$	69,773			$	151,908			$	731,810			$	165,046			$	896,856
Special mention		-				-				-				-				-				4,274				4,274				-				4,274
Substandard		-				-				-				-				-				-				-				-				-
Doubtful		-				-				-				-				-				-				-				-				-
Loss		-				-				-				-				-				-				-				-				-
Total	$	150,126			$	140,105			$	120,517			$	99,381			$	69,773			$	156,182			$	736,084			$	165,046			$	901,130
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Commercial Loans	$	197,979			$	159,315			$	154,368			$	116,921			$	77,442			$	185,214			$	891,239			$	286,368			$	1,177,607


Retail:	2024				2023				2022				2021				2020				Prior				Term Loans Total				Revolving Loans				Grand Total
Consumer
Performing	$	6,489			$	6,636			$	8,427			$	4,240			$	1,632			$	1,283			$	28,707			$	697			$	29,404
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				7				1				-				-				-				8				-				8
Total	$	6,489			$	6,643			$	8,428			$	4,240			$	1,632			$	1,283			$	28,715			$	697			$	29,412
Current year-to-date gross write-offs (1)	$	-			$	69			$	111			$	11			$	-			$	2			$	193			$	-			$	193

Construction real estate
Performing	$	1,436			$	451			$	-			$	522			$	-			$	-			$	2,409			$	14,404			$	16,813
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				229				229
Total	$	1,436			$	451			$	-			$	522			$	-			$	-			$	2,409			$	14,633			$	17,042
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Residential real estate
Performing	$	40,095			$	43,531			$	54,379			$	25,350			$	13,717			$	45,051			$	222,123			$	56,111			$	278,234
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		63				292				1,864				736				278				183				3,416				51				3,467
Total	$	40,158			$	43,823			$	56,243			$	26,086			$	13,995			$	45,234			$	225,539			$	56,162			$	281,701
Current year-to-date gross write-offs	$	-			$	23			$	-			$	1			$	-			$	6			$	30			$	-			$	30

Loans to Other Financial Institutions
Performing	$	39,878			$	-			$	-			$	-			$	-			$	-			$	39,878			$	-			$	39,878
Nonperforming		-				-				-				-				-				-				-				-				-
Nonaccrual		-				-				-				-				-				-				-				-				-
Total	$	39,878			$	-			$	-			$	-			$	-			$	-			$	39,878			$	-			$	39,878
Current year-to-date gross write-offs	$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

Total Retail Loans	$	87,961			$	50,917			$	64,671			$	30,848			$	15,627			$	46,517			$	296,541			$	71,492			$	368,033

(1) It is noted that write-offs in the tables above do not include checking account write-offs. Checking account write-offs were $607,000 during the full year 2024.

Summary of Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable

The following tables present the amortized cost basis of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the first six months of 2025 and the full year 2024.


For the period ended:	June 30, 2025

	Term Extension
					% of Total
					Class of
(Dollars in thousands)	Amortized				Financing
	Cost Basis				Receivable
Residential real estate	$	132				0	%
Total	$	132


For the period ended:	December 31, 2024

	Term Extension
					% of Total
					Class of
(Dollars in thousands)	Amortized				Financing
	Cost Basis				Receivable
Residential real estate		121				0	%
Total	$	121

The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable during the first six months of 2025 and the full year 2024.


For the period ended:	June 30, 2025
	Term Extension
Residential real estate	Provided with new payment schedule to catch up on past due balance


For the period ended:	December 31, 2024
	Term Extension
Residential real estate	Provided with new five year payment plan based on bankruptcy

The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty.


For the period ended:	June 30, 2025
(Dollars in thousands)	Term extension

Residential real estate	$	132
Total	$	132


For the period ended:	December 31, 2024
(Dollars in thousands)	Term extension

Residential real estate		121
Total	$	121

The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial difficulty by payment status and class of financing receivable.


For the period ended:	June 30, 2025
(Dollars in thousands)	Current				30-89 days				Greater than 90 days				Total

Residential real estate	$	132			$	-			$	-			$	132
Total	$	132			$	-			$	-			$	132


For the period ended:	December 31, 2024
(Dollars in thousands)	Current				30-89 days				Greater than 90 days				Total

Residential real estate	$	-			$	-			$	121			$	121
Total	$	-			$	-			$	121			$	121

Nonaccrual Loans by Loan Category

Nonaccrual loans by loan category were as follows:


As of June 30, 2025
(Dollars in thousands)	Nonaccrual loans with no ACL				Total nonaccrual loans				Interest income recognized year to date on nonaccrual loans
Agricultural	$	-			$	-			$	-
Commercial and industrial		-				6,830				-
Consumer		-				38				-
Construction real estate		-				229				-
Commercial real estate		-				1,781				11
Residential real estate		962				7,976				48
Total nonaccrual loans	$	962			$	16,854			$	59



As of December 31, 2024
(Dollars in thousands)	Nonaccrual loans with no ACL				Total nonaccrual loans				Interest income recognized year to date on nonaccrual loans
Agricultural	$	-			$	-			$	-
Commercial and industrial		-				-				-
Consumer		-				8				1
Construction real estate		-				229				9
Commercial real estate		-				-				-
Residential real estate		806				3,467				71
Total nonaccrual loans	$	806			$	3,704			$	81

Aging Analysis of Loans by Loan Category

An aging analysis of loans by loan category follows:


									Loans																Loans
	Loans				Loans				Past Due																90 Days
	Past Due				Past Due				Greater																Past
(Dollars in thousands)	30 to 59				60 to 89				Than 90								Loans Not				Total				Due and
	Days (1)				Days (1)				Days (1)				Total (1)				Past Due				Loans				Accruing
June 30, 2025
Agricultural	$	-			$	-			$	-			$	-			$	47,273			$	47,273			$	-
Commercial and industrial		54				-				4,958				5,012				346,355				351,367				-
Consumer		112				28				-				140				29,601				29,741				-
Commercial real estate		13,594				-				1,781				15,375				1,728,166				1,743,541				-
Construction real estate		-				774				229				1,003				20,505				21,508				-
Residential real estate		446				3,364				3,072				6,882				717,447				724,329				-
Loans to Other Financial Institutions		-				-				-				-				3,033				3,033				-
	$	14,206			$	4,166			$	10,040			$	28,412			$	2,892,380			$	2,920,792			$	-


									Loans																Loans
	Loans				Loans				Past Due																90 Days
	Past Due				Past Due				Greater																Past
(Dollars in thousands)	30 to 59				60 to 89				Than 90								Loans Not				Total				Due and
	Days (1)				Days (1)				Days (1)				Total (1)				Past Due				Loans				Accruing
December 31, 2024
Agricultural	$	-			$	-			$	-			$	-			$	48,221			$	48,221			$	-
Commercial and industrial		-				49				-				49				228,207				228,256				-
Consumer		52				87				7				146				29,266				29,412				-
Commercial real estate		23				-				-				23				901,107				901,130				-
Construction real estate		694				-				229				923				16,119				17,042				-
Residential real estate		4,866				765				1,850				7,481				274,220				281,701				-
Loans to Other Financial Institutions		-				-				-				-				39,878				39,878				-
	$	5,635			$	901			$	2,086			$	8,622			$	1,537,018			$	1,545,640			$	-

(1) Includes nonaccrual loans.