Loan balances were as follows:


	June 30, 2026			December 31, 2025
Commercial & Agriculture	$	315,479		$	308,692
Commercial Real Estate- Owner Occupied		389,434			385,547
Commercial Real Estate- Non-Owner Occupied		1,229,731			1,239,017
Residential Real Estate		957,960			944,328
Real Estate Construction		265,488			285,137
Farm Real Estate		32,440			37,775
Lease Financing Receivables		32,665			35,103
Consumer and Other		31,707			34,447
Total loans		3,254,904			3,270,046
Allowance for credit losses		(41,713	)		(42,020	)
Net loans	$	3,213,191		$	3,228,026

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed in this Note 4 and in Note 5 (Allowance for Credit Losses). As of June 30, 2026 and December 31, 2025, accrued interest receivable on loans totaled $10,496 and $10,031, respectively, and is included in the Accrued interest receivable line item on the Company's Consolidated Balance Sheet.

Lease financing receivables consist of sales-type and direct financing leases for equipment, with terms typically ranging from two to six years. On direct financing leases, the Company obtains third-party residual value guarantees to reduce its residual asset risk. The net investment in direct financing and sales-type leases was comprised of the following as of June 30, 2026 and December 31, 2025:


	June 30, 2026			December 31, 2025
Minimum lease payments receivable	$	35,621		$	39,332
Unguaranteed residual assets		2,224			1,558
Unamortized direct costs		57			14
Unearned income		(5,237	)		(5,801	)
Total net investment in direct financing and sales-type leases	$	32,665		$	35,103

The components of total lease income were as follows for the three and six months ended June 30, 2026 and 2025.


	Three Months Ended					Six Months Ended
	June 30,		June 30,			June 30,		June 30,
	2026		2025			2026		2025
Interest and dividend income - Loans and leases, including fees:
Interest income on net investments in direct financing and sales-type leases	$	606	$	2,221		$	1,232	$	3,628
Noninterest income - Lease revenue & residual income:
Lease income from operating lease payments		1,207		824			2,670		2,420
Other(1)		197		(299	)		364		1

(1) Other consists of lease-related fees and commissions and gains (losses) on sale or disposition of leased assets

The 2025 amounts disclosed in the tables above include a nonrecurring item identified in conjunction with the conversion of the core leasing system in the second quarter of 2025. An entry was recorded to increase lease interest income by approximately $1,260, reduce lease income from operating lease payments by approximately $550, and reduce other noninterest lease revenue & residual income by approximately $495. This entry is not representative of recurring lease activity and should be considered as such when compared to current year amounts.