Commercial real estate mortgage loans: Owner occupied commercial real estate mortgage loans are secured by commercial office buildings, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. For such loans, repayment is largely dependent upon the operation of the borrower's business.

Commercial and industrial: Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. These loans are generally secured by equipment, inventory and accounts receivable of the borrower and repayment is primarily dependent on business cash flows.

Residential real estate mortgage loans: Residential real estate mortgage consists primarily of loans secured by 1-4 family residential properties, including home equity lines of credit. Repayment is primarily dependent on the personal cash flow of the borrower.

Agricultural real estate loans: Agricultural real estate loans are secured by real estate related to farmland and are affected by the value of farmland. Generally, the borrower’s ability to repay is based on the value of farmland and cash flows from farming operations.

Agricultural production loans: Agricultural production loans are primarily operating lines subject to annual farming revenues, including productivity and yield of farm products and market pricing at the time of sale.

Consumer: Consumer loans include all loans issued to individuals not included in the categories above. Examples of consumer and other loans are automobile loans, consumer credit cards and loans to finance education, among others. Many consumer loans are unsecured. Repayment is primarily dependent on the personal cash flow of the borrower.

From time to time the Company has purchased pools of residential real estate loans originated by other financial institutions to hold for investment with the intent to diversify the residential real estate portfolio. During 2025 and 2024 the Company did not purchase any pools of residential loans. As of December 31, 2025, and 2024, residential real estate loans include $252,884 and $274,922 of purchased residential real estate loans.

The Company occasionally purchases the government guaranteed portion of loans originated by other financial institutions to hold for investment. During 2025 and 2024, the Company purchased $61,987 and $49,086 in loans guaranteed by governmental agencies.

The unamortized discount of merger purchase accounting adjustments related to non-purchase credit deteriorated loans included in the loan totals above are $12,853 and $4,659 with related loans of $627,644 and $252,309 at December 31, 2025, and 2024.

Overdraft deposit accounts are reclassified and included in consumer loans above. These accounts totaled $878 and $329 at December 31, 2025, and 2024.

The Company estimates the allowance for credit losses under CECL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Internal historical loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency levels or loan terms, as well as, for changes in environmental conditions, such as changes in unemployment rates, property values, consumer price index, gross domestic product, housing starts or relevant index, U.S. personal income, U.S. housing price indices, federal funds target and various U.S. Government interest rates.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified commercial real estate, commercial and industrial, residential real estate, agricultural real estate, agricultural production and consumer as portfolio segments and measures the allowance for credit losses using a historical loss rate method for each segment to estimate credit losses on a collective basis. The Company’s CECL calculation utilizes historical loss rates, average default month, average prepayment rates and exposure at default as assumptions to calculate an unadjusted historical loss estimate for the contractual term of the loans adjusted for prepayment. The historical loss estimate is then adjusted for the anticipated changes in the Company’s historical loss rate using a regression analysis and current economic variables over the next 12 to 24 months. The Company has selected 12 to 24 months as its reasonable and supportable forecast period and has selected an immediate reversion back to unadjusted historical loss rates for periods beyond the reasonable and supportable forecast period. The calculated historical loss estimate and the economic qualitative adjustment are further evaluated for change via a management qualitative adjustment factor. Management qualitative adjustments typically are anticipated changes in loss trends that are not reflected in the historical data to be used in forecasting.

The Company evaluates all loans that do not share risk characteristics on an individual basis for estimating the allowance for credit loss. Loans evaluated on an individual basis are not included in the collective basis. The Company currently reviews all loans that are classified as non-accrual on an individual basis. The Company typically elects the collateral-dependent practical expedient on all loans individually assessed for credit losses and expected credit losses are based on the fair value of the collateral at the reporting date adjusted for selling costs as appropriate.

The Company’s ACL is highly dependent on credit quality, macroeconomic forecasts and conditions, the composition of our loan portfolio and other management judgments. The current management adjustment represents a significant portion of the Company’s ACL and is comprised of the estimated impact to ACL from the impact of inflation and the associated monetary policy response and the impact of global market disruption.


December 31, 2024	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Agricultural Real Estate			Agricultural			Consumer			Total
Allowance for credit losses:
Beginning balance	$	13,476		$	17,954		$	7,784		$	1,718		$	995		$	1,593		$	43,520
Provision (reversal) for credit losses		1,525			(1,290	)		681			1,464			(859	)		1,025			2,546
Initial PCD on Acquired loans		—			128			227			330			306			9			1,000
Loans charged-off		(97	)		(3,185	)		(183	)		(100	)		(28	)		(1,023	)		(4,616	)
Recoveries		44			398			44			92			25			214			817
Total ending allowance balance	$	14,948		$	14,005		$	8,553		$	3,504		$	439		$	1,818		$	43,267


December 31, 2023	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Agricultural Real Estate			Agricultural			Consumer			Total
Allowance for loan losses:
Beginning balance	$	16,731		$	14,951		$	8,608		$	819		$	2,457		$	2,281		$	45,847
Provision (reversal) for credit losses		(3,330	)		6,703			(806	)		945			(1,509	)		(130	)		1,873
Loans charged-off		(20	)		(3,791	)		(80	)		(54	)		(108	)		(901	)		(4,954	)
Recoveries		95			91			62			8			155			343			754
Total ending allowance balance	$	13,476		$	17,954		$	7,784		$	1,718		$	995		$	1,593		$	43,520

The following tables present the recorded investment in loans and the balance in the allowance for credit losses by portfolio and class based on impairment method as of December 31, 2025, and 2024.


December 31, 2025	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Agricultural Real Estate		Agricultural		Consumer		Total
Allowance for credit losses:
Individually evaluated for credit losses	$	2,599	$	2,341	$	910	$	342	$	186	$	171	$	6,549
Collectively evaluated for credit losses		17,438		15,489		7,158		4,327		151		1,644		46,207
Total	$	20,037	$	17,830	$	8,068	$	4,669	$	337	$	1,815	$	52,756
Loan Balance:
Individually evaluated for credit losses	$	18,171	$	21,905	$	4,664	$	2,886	$	3,928	$	770	$	52,324
Collectively evaluated for credit losses		2,208,177		794,980		577,481		276,041		184,547		104,630		4,145,856
Total	$	2,226,348	$	816,885	$	582,145	$	278,927	$	188,475	$	105,400	$	4,198,180


December 31, 2024	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Agricultural Real Estate		Agricultural		Consumer		Total
Allowance for credit losses:
Individually evaluated for credit losses	$	1,053	$	1,618	$	1,167	$	701	$	147	$	201	$	4,887
Collectively evaluated for credit losses		13,895		12,387		7,386		2,803		292		1,617		38,380
Total	$	14,948	$	14,005	$	8,553	$	3,504	$	439	$	1,818	$	43,267
Loan Balance:
Individually evaluated for credit losses	$	7,854	$	8,593	$	4,996	$	5,839	$	1,740	$	871	$	29,893
Collectively evaluated for credit losses		1,822,660		650,272		561,770		261,409		85,599		89,213		3,470,923
Total	$	1,830,514	$	658,865	$	566,766	$	267,248	$	87,339	$	90,084	$	3,500,816

The following table presents information related to non-accrual loans at December 31, 2025.


December 31, 2025	Unpaid Principal Balance		Recorded Investment		Allowance for Credit Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate	$	3,795	$	3,734	$	—	$	3,470	$	66
Commercial and industrial		2,146		707		—		6,995		5
Residential real estate		610		552		—		110		31
Agricultural real estate		297		—		—		1,583		2
Agricultural		1,624		1,291		—		774		—
Consumer		14		—		—		—		—
Subtotal		8,486		6,284		—		12,932		104
With an allowance recorded:
Commercial real estate		7,461		6,758		1,639		6,821		182
Commercial and industrial		24,794		20,820		2,303		9,584		289
Residential real estate		3,975		3,704		875		4,103		66
Agricultural real estate		1,694		1,167		262		1,747		5
Agricultural		897		862		124		609		11
Consumer		719		681		162		753		19
Subtotal		39,540		33,992		5,365		23,617		572
Total	$	48,026	$	40,276	$	5,365	$	36,549	$	676

The above table presents interest income for the twelve months ended December 31, 2025. Interest income recognized in the above table was substantially recognized on the cash basis. The recorded investment in loans excludes accrued interest receivable due to immateriality.

The following table presents information related to non-accrual loans at December 31, 2024.


December 31, 2024	Unpaid Principal Balance		Recorded Investment		Allowance for Credit Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate	$	3,068	$	3,068	$	—	$	3,542	$	104
Commercial and industrial		—		—		—		398		—
Residential real estate		19		—		—		—		1
Agricultural real estate		2,490		2,014		—		2,009		140
Agricultural		—		—		—		109		—
Consumer		31		—		—		—		—
Subtotal		5,608		5,082		—		6,058		245
With an allowance recorded:
Commercial real estate		4,719		4,390		1,015		3,382		105
Commercial and industrial		12,424		7,798		1,482		6,760		164
Residential real estate		5,260		4,670		1,145		5,011		40
Agricultural real estate		5,594		3,737		697		3,520		10
Agricultural		953		592		73		1,390		6
Consumer		846		781		187		706		22
Subtotal		29,796		21,968		4,599		20,769		347
Total	$	35,404	$	27,050	$	4,599	$	26,827	$	592

The above table presents interest income for the twelve months ended December 31, 2024. Interest income recognized in the above table was substantially recognized on the cash basis. The recorded investment in loans excludes accrued interest receivable due to immateriality.

The following tables present the aging of the recorded investment in past due loans as of December 31, 2025 and 2024, by portfolio and class of loans.


December 31, 2025	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days Past Due Still On Accrual		Non-accrual		Loans Not Past Due		Total
Commercial real estate	$	4,411	$	3,121	$	—	$	10,492	$	2,208,324	$	2,226,348
Commercial and industrial		3,830		1,655		1,146		21,527		788,727		816,885
Residential real estate		3,825		842		164		4,256		573,058		582,145
Agricultural real estate		1,194		480		—		1,167		276,086		278,927
Agricultural		715		656		1,300		2,153		183,651		188,475
Consumer		353		95		—		681		104,271		105,400
Total	$	14,328	$	6,849	$	2,610	$	40,276	$	4,134,117	$	4,198,180


December 31, 2024	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days Past Due Still On Accrual		Non-accrual		Loans Not Past Due		Total
Commercial real estate	$	3,502	$	2,030	$	156	$	7,458	$	1,817,368	$	1,830,514
Commercial and industrial		1,314		644		25		7,798		649,084		658,865
Residential real estate		2,396		634		—		4,670		559,066		566,766
Agricultural real estate		457		312		—		5,751		260,728		267,248
Agricultural		411		80		—		592		86,256		87,339
Consumer		666		196		—		781		88,441		90,084
Total	$	8,746	$	3,896	$	181	$	27,050	$	3,460,943	$	3,500,816

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit loss expense recognized within other non-interest expense on the consolidated statements of income and included in other liabilities on the consolidated balance sheets. The estimated credit loss includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate of expected credit loss is based on the historical loss rate for the class of loan the commitments would be classified as if funded.

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 loans individually by classifying the loans as to credit risk. Consumer loans are considered unclassified credits unless downgraded due to payment status or reviewed as part of a larger credit relationship. The Company uses the following definitions for risk ratings:

Pass: Loans classified as pass include all loans that do not fall under one of the three following categories. These loans are considered unclassified.

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 deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. These loans are considered classified.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. These loans are considered classified.

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 liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. These loans are considered classified.

Based on the most recent analysis performed, the risk category of loans by type and year of origination, at December 31, 2025, is as follows.


December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
Commercial real estate
Risk rating
Pass	$	429,259	$	319,227	$	162,815	$	256,817	$	162,737	$	258,510	$	614,449	$	999	$	2,204,813
Special Mention		—		115		—		73		—		—		667		—		855
Substandard		4,739		2,329		1,376		3,839		1,148		3,211		4,038		—		20,680
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial real estate	$	433,998	$	321,671	$	164,191	$	260,729	$	163,885	$	261,721	$	619,154	$	999	$	2,226,348
Commercial and industrial
Risk rating
Pass	$	192,904	$	120,288	$	43,779	$	48,264	$	33,804	$	25,293	$	304,608	$	849	$	769,789
Special Mention		—		93		16,865		147		10		336		129		—		17,580
Substandard		319		16,822		7,547		1,144		215		1,832		1,637		—		29,516
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	193,223	$	137,203	$	68,191	$	49,555	$	34,029	$	27,461	$	306,374	$	849	$	816,885
Residential real estate
Risk rating
Pass	$	49,089	$	17,591	$	30,673	$	36,518	$	242,578	$	121,963	$	78,442	$	379	$	577,233
Special Mention		—		—		—		—		—		277		—		—		277
Substandard		17		104		1,265		553		217		2,213		221		45		4,635
Doubtful		—		—		—		—		—		—		—		—		—
Total residential real estate	$	49,106	$	17,695	$	31,938	$	37,071	$	242,795	$	124,453	$	78,663	$	424	$	582,145
Agricultural real estate
Risk rating
Pass	$	65,295	$	43,928	$	19,536	$	16,115	$	10,270	$	49,537	$	70,113	$	270	$	275,064
Special Mention		—		—		—		—		—		129		—		—		129
Substandard		—		—		2,146		78		407		1,103		—		—		3,734
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural real estate	$	65,295	$	43,928	$	21,682	$	16,193	$	10,677	$	50,769	$	70,113	$	270	$	278,927
Agricultural
Risk rating
Pass	$	27,452	$	20,798	$	4,886	$	1,649	$	1,506	$	2,618	$	127,847	$	224	$	186,980
Special Mention		—		—		1		—		—		32		—		—		33
Substandard		56		87		143		130		17		663		366		—		1,462
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural	$	27,508	$	20,885	$	5,030	$	1,779	$	1,523	$	3,313	$	128,213	$	224	$	188,475
Consumer
Risk rating
Pass	$	37,830	$	8,889	$	9,933	$	7,213	$	3,326	$	3,485	$	34,044	$	—	$	104,720
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		17		61		216		223		119		44		—		—		680
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer	$	37,847	$	8,950	$	10,149	$	7,436	$	3,445	$	3,529	$	34,044	$	—	$	105,400
Total loans
Risk rating
Pass	$	801,829	$	530,721	$	271,622	$	366,576	$	454,221	$	461,406	$	1,229,503	$	2,721	$	4,118,599
Special Mention		—		208		16,866		220		10		774		796		—		18,874
Substandard		5,148		19,403		12,693		5,967		2,123		9,066		6,262		45		60,707
Doubtful		—		—		—		—		—		—		—		—		—
Total loans	$	806,977	$	550,332	$	301,181	$	372,763	$	456,354	$	471,246	$	1,236,561	$	2,766	$	4,198,180

The risk category of loans by type and year of origination, at December 31, 2024, is as follows.


December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
Commercial real estate
Risk rating
Pass	$	332,078	$	191,947	$	337,048	$	162,180	$	148,732	$	166,614	$	474,324	$	855	$	1,813,778
Special Mention		331		—		103		—		—		378		497		—		1,309
Substandard		795		459		3,693		3,499		365		6,277		339		—		15,427
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial real estate	$	333,204	$	192,406	$	340,844	$	165,679	$	149,097	$	173,269	$	475,160	$	855	$	1,830,514
Commercial and industrial
Risk rating
Pass	$	114,421	$	78,335	$	69,294	$	32,227	$	53,119	$	16,902	$	261,227	$	994	$	626,519
Special Mention		121		—		160		18		—		870		131		—		1,300
Substandard		8,256		8,189		315		274		1,113		1,592		10,563		667		30,969
Doubtful		—		—		—		—		—		77		—		—		77
Total commercial and industrial	$	122,798	$	86,524	$	69,769	$	32,519	$	54,232	$	19,441	$	271,921	$	1,661	$	658,865
Residential real estate
Risk rating
Pass	$	25,981	$	33,933	$	35,687	$	260,180	$	7,622	$	130,242	$	66,981	$	572	$	561,198
Special Mention		—		—		—		—		—		300		72		—		372
Substandard		—		195		253		403		123		3,370		807		45		5,196
Doubtful		—		—		—		—		—		—		—		—		—
Total residential real estate	$	25,981	$	34,128	$	35,940	$	260,583	$	7,745	$	133,912	$	67,860	$	617	$	566,766
Agricultural real estate
Risk rating
Pass	$	52,369	$	16,936	$	24,551	$	11,468	$	20,508	$	36,834	$	95,410	$	277	$	258,353
Special Mention		1,541		—		151		—		—		138		595		—		2,425
Substandard		—		2,054		56		571		76		3,659		54		—		6,470
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural real estate	$	53,910	$	18,990	$	24,758	$	12,039	$	20,584	$	40,631	$	96,059	$	277	$	267,248
Agricultural
Risk rating
Pass	$	15,428	$	4,045	$	5,364	$	2,576	$	3,674	$	1,308	$	53,757	$	49	$	86,201
Special Mention		—		—		—		—		—		32		—		—		32
Substandard		45		185		19		274		404		36		143		—		1,106
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural	$	15,473	$	4,230	$	5,383	$	2,850	$	4,078	$	1,376	$	53,900	$	49	$	87,339
Consumer
Risk rating
Pass	$	35,412	$	17,503	$	14,157	$	5,765	$	2,732	$	2,724	$	11,007	$	—	$	89,300
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		13		234		289		170		43		35		—		—		784
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer	$	35,425	$	17,737	$	14,446	$	5,935	$	2,775	$	2,759	$	11,007	$	—	$	90,084
Total loans
Risk rating
Pass	$	575,689	$	342,699	$	486,101	$	474,396	$	236,387	$	354,624	$	962,706	$	2,747	$	3,435,349
Special Mention		1,993		—		414		18		—		1,718		1,295		—		5,438
Substandard		9,109		11,316		4,625		5,191		2,124		14,969		11,906		712		59,952
Doubtful		—		—		—		—		—		77		—		—		77
Total loans	$	586,791	$	354,015	$	491,140	$	479,605	$	238,511	$	371,388	$	975,907	$	3,459	$	3,500,816

The following table discloses the charge-off and recovery activity by loan type and year of origination at December 31, 2025.


December 31, 2025	2025			2024			2023			2022			2021			Prior			Revolving Loans Amortized Cost			Revolving Loans Converted to Term		Total
Commercial real estate
Gross charge-offs	$	—		$	(23	)	$	(151	)	$	(543	)	$	(49	)	$	(187	)	$	—		$	—	$	(953	)
Gross recoveries		—			3			—			402			2			686			—			—		1,093
Net charge-offs	$	—		$	(20	)	$	(151	)	$	(141	)	$	(47	)	$	499		$	—		$	—	$	140
Commercial and industrial
Gross charge-offs	$	(23	)	$	(98	)	$	(393	)	$	(63	)	$	(97	)	$	(1,355	)	$	(59	)	$	—	$	(2,088	)
Gross recoveries		—			2			48			104			88			394			119			—		755
Net charge-offs	$	(23	)	$	(96	)	$	(345	)	$	41		$	(9	)	$	(961	)	$	60		$	—	$	(1,333	)
Residential real estate
Gross charge-offs	$	—		$	—		$	(1	)	$	(34	)	$	—		$	(112	)	$	(2	)	$	—	$	(149	)
Gross recoveries		—			—			—			55			—			99			6			—		160
Net charge-offs	$	—		$	—		$	(1	)	$	21		$	—		$	(13	)	$	4		$	—	$	11
Agricultural real estate
Gross charge-offs	$	—		$	—		$	—		$	(18	)	$	—		$	(40	)	$	—		$	—	$	(58	)
Gross recoveries		—			—			—			17			—			76			—			—		93
Net charge-offs	$	—		$	—		$	—		$	(1	)	$	—		$	36		$	—		$	—	$	35
Agricultural
Gross charge-offs	$	—		$	(12	)	$	(15	)	$	(3	)	$	—		$	(98	)	$	(3	)	$	—	$	(131	)
Gross recoveries		—			11			14			—			1			35			—			—		61
Net charge-offs	$	—		$	(1	)	$	(1	)	$	(3	)	$	1		$	(63	)	$	(3	)	$	—	$	(70	)
Consumer
Gross charge-offs	$	(293	)	$	(179	)	$	(282	)	$	(369	)	$	(97	)	$	(310	)	$	(81	)	$	—	$	(1,611	)
Gross recoveries		10			15			40			85			22			103			13			—		288
Net charge-offs	$	(283	)	$	(164	)	$	(242	)	$	(284	)	$	(75	)	$	(207	)	$	(68	)	$	—	$	(1,323	)
Total loans
Gross charge-offs	$	(316	)	$	(312	)	$	(842	)	$	(1,030	)	$	(243	)	$	(2,102	)	$	(145	)	$	—	$	(4,990	)
Gross recoveries		10			31			102			663			113			1,393			138			—		2,450
Net charge-offs	$	(306	)	$	(281	)	$	(740	)	$	(367	)	$	(130	)	$	(709	)	$	(7	)	$	—	$	(2,540	)

The following table discloses the charge-off and recovery activity by loan type and year of origination at December 31, 2024.


December 31, 2024	2024			2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost			Revolving Loans Converted to Term		Total
Commercial real estate
Gross charge-offs	$	—		$	—		$	(17	)	$	—		$	—		$	—		$	(80	)	$	—	$	(97	)
Gross recoveries		—			—			8			—			1			34			1			—		44
Net charge-offs	$	—		$	—		$	(9	)	$	—		$	1		$	34		$	(79	)	$	—	$	(53	)
Commercial and industrial
Gross charge-offs	$	—		$	(31	)	$	(360	)	$	(176	)	$	(486	)	$	(839	)	$	(1,293	)	$	—	$	(3,185	)
Gross recoveries		—			—			247			13			21			56			59			2		398
Net charge-offs	$	—		$	(31	)	$	(113	)	$	(163	)	$	(465	)	$	(783	)	$	(1,234	)	$	2	$	(2,787	)
Residential real estate
Gross charge-offs	$	—		$	—		$	(134	)	$	(2	)	$	—		$	(21	)	$	(26	)	$	—	$	(183	)
Gross recoveries		—			—			—			1			—			39			4			—		44
Net charge-offs	$	—		$	—		$	(134	)	$	(1	)	$	—		$	18		$	(22	)	$	—	$	(139	)
Agricultural real estate
Gross charge-offs	$	—		$	—		$	(11	)	$	(12	)	$	(1	)	$	(76	)	$	—		$	—	$	(100	)
Gross recoveries		4			—			10			—			—			78			—			—		92
Net charge-offs	$	4		$	—		$	(1	)	$	(12	)	$	(1	)	$	2		$	—		$	—	$	(8	)
Agricultural
Gross charge-offs	$	—		$	(2	)	$	(25	)	$	(1	)	$	—		$	—		$	—		$	—	$	(28	)
Gross recoveries		—			1			22			1			1			—			—			—		25
Net charge-offs	$	—		$	(1	)	$	(3	)	$	—		$	1		$	—		$	—		$	—	$	(3	)
Consumer
Gross charge-offs	$	(206	)	$	(105	)	$	(216	)	$	(183	)	$	(49	)	$	(191	)	$	(73	)	$	—	$	(1,023	)
Gross recoveries		8			10			19			34			10			122			11			—		214
Net charge-offs	$	(198	)	$	(95	)	$	(197	)	$	(149	)	$	(39	)	$	(69	)	$	(62	)	$	—	$	(809	)
Total loans
Gross charge-offs	$	(206	)	$	(138	)	$	(763	)	$	(374	)	$	(536	)	$	(1,127	)	$	(1,472	)	$	—	$	(4,616	)
Gross recoveries		12			11			306			49			33			329			75			2		817
Net charge-offs	$	(194	)	$	(127	)	$	(457	)	$	(325	)	$	(503	)	$	(798	)	$	(1,397	)	$	2	$	(3,799	)

The following table presents the amortized cost basis of loans at December 31, 2025, and 2024, that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2025 and 2024, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.


December 31, 2025	Payment Delay		Term Extension		Combination Payment Delay and Term Extension		Total Modifications		Total Class of Financing Receivable
Commercial real estate	$	759	$	901	$	—	$	1,660		0.07	%
Commercial and industrial		156		2,554		—		2,710		0.33	%
Residential real estate		—		—		—		—		0.00	%
Agricultural real estate		—		—		—		—		0.00	%
Agricultural		230		—		—		230		0.12	%
Consumer		—		—		—		—		0.00	%
Total	$	1,145	$	3,455	$	—	$	4,600		0.11	%

December 31, 2024	Payment Delay		Term Extension		Combination Payment Delay and Term Extension		Total Modifications		Total Class of Financing Receivable
Commercial real estate	$	—	$	1,515	$	9,933	$	11,448		0.63	%
Commercial and industrial		3,667		2,470		1,736		7,873		1.19	%
Residential real estate		—		—		—		—		0.00	%
Agricultural real estate		—		3,222		—		3,222		1.21	%
Agricultural		—		1,641		168		1,809		2.07	%
Consumer		—		—		—		—		0.00	%
Total	$	3,667	$	8,848	$	11,837	$	24,352		0.70	%

At December 31, 2025, and 2024, there were $3 and $1,145 in commitments to lend additional amounts on these loans.

At modification date, the Company considers loans modified to borrowers in financial distress as loans that do not share similar risk characteristics with collectively evaluated loans at modification date for the purposes of calculating the allowance for credit losses. These loans will be evaluated for credit losses based on either discounted cash flows or the fair value of collateral at modification date; however, subsequent to the modification date these loans will be evaluated for credit losses as part of the collectively evaluated pools after a period of ongoing performance under the terms of the modified loan.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified during the twelve months ended December 31, 2025, and 2024.