v3.26.1
Loans and Leases (Tables)
 6 Months Ended
Jun. 30, 2026
Loans and Leases [Abstract]  
Components of Loans and Leases
Loans and leases as of the dates indicated consisted of the following:

(Dollars in thousands)
  
June 30,
2026
    
December 31,
2025
  
Loans and leases held for investment, net
            
Real estate:
            
Commercial
  
$
1,541,826
    
$
1,480,906
  
Agricultural
    
692,554
      
705,668
  
Residential and home equity
    
404,005
      
405,080
  
Construction
    
115,150
      
128,179
  
Total real estate
    
2,753,535
      
2,719,833
  
Commercial & industrial
    
527,508
      
497,700
  
Agricultural
    
255,767
      
264,117
  
Commercial leases
    
180,223
      
181,004
  
Consumer and other
    
4,392
      
4,671
  
Total gross loans and leases
    
3,721,425
      
3,667,325
  
Unearned income
    
(17,568
)
    
(18,380
)
Total net loans and leases
    
3,703,857
      
3,648,945
  
Allowance for credit losses
    
(77,253
)
    
(76,375
)
Total loans and leases held for investment, net
  
$
3,626,604
    
$
3,572,570
  
Aging Analysis of Loan and Lease Portfolio, Net of Unearned Income by Time Past Due
The following tables show an aging analysis of the loan and lease portfolio, net of unearned income, for the periods indicated:


   
June 30, 2026
  
(Dollars in thousands)
  
30-89 Days
Past Due
    
90+ Days Past Due
    
Non-accrual
    
Total Past Due and Nonaccrual
    
Current
    
Total
    
Non-accrual with no ACL
  
Loans and leases held for investment, net
                                          
Real estate:
                                          
Commercial
  
$
-
    
$
-
    
$
712
    
$
712
    
$
1,532,944
    
$
1,533,656
    
$
712
  
Agricultural
    
-
      
2,284
      
1,732
      
4,016
      
688,538
      
692,554
      
1,732
  
Residential and home equity
    
203
      
-
      
-
      
203
      
403,802
      
404,005
      
-
  
Construction
    
-
      
-
      
-
      
-
      
115,150
      
115,150
      
-
  
Total real estate
    
203
      
2,284
      
2,444
      
4,931
      
2,740,434
      
2,745,365
      
2,444
  
Commercial & industrial
    
-
      
-
      
230
      
230
      
527,278
      
527,508
      
230
  
Agricultural
    
-
      
-
      
-
      
-
      
255,767
      
255,767
      
-
  
Commercial leases
    
-
      
-
      
-
      
-
      
170,825
      
170,825
      
-
  
Consumer and other
    
4
      
-
      
-
      
4
      
4,388
      
4,392
      
-
  
Total loans and leases, net
  
$
207
    
$
2,284
    
$
2,674
    
$
5,165
    
$
3,698,692
    
$
3,703,857
    
$
2,674
  
   
December 31, 2025
  
(Dollars in thousands)
  
30-89 Days
Past Due
    
90+ Days
Past Due
    
Non-accrual
    
Totl Past Due and Nonaccrual
    
Current
    
Total
    
Non-accrual with no ACL
  
Loans and leases held for investment, net
                                          
Real estate:
                                          
Commercial
  
$
7,248
    
$
-
    
$
750
    
$
7,998
    
$
1,464,585
    
$
1,472,583
    
$
750
  
Agricultural
    
-
      
-
      
-
      
-
      
705,668
      
705,668
      
-
  
Residential and home equity
    
-
      
-
      
-
      
-
      
405,080
      
405,080
      
-
  
Construction
    
-
      
-
      
-
      
-
      
128,179
      
128,179
      
-
  
Total real estate
    
7,248
      
-
      
750
      
7,998
      
2,703,512
      
2,711,510
      
750
  
Commercial & industrial
    
-
      
-
      
-
      
-
      
497,700
      
497,700
      
-
  
Agricultural
    
-
      
-
      
-
      
-
      
264,117
      
264,117
      
-
  
Commercial leases
    
1,659
      
-
      
-
      
1,659
      
169,288
      
170,947
      
-
  
Consumer and other
    
5
      
-
      
-
      
5
      
4,666
      
4,671
      
-
  
Total loans and leases, net
  
$
8,912
    
$
-
    
$
750
    
$
9,662
    
$
3,639,283
    
$
3,648,945
    
$
750
  
Amortized Cost of Loans to Borrowers Experiencing Financial Difficulty
The following table presents the amortized cost of loans that were both experiencing financial difficulty and modified, by portfolio segment and type of modification, during the periods presented. 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 portfolio segment of financing receivable is also presented below:
   
Three Months Ended June 30, 2026
        
   
Amortized cost associated with the following modification types:
        
(Dollars in thousands)
  
Maturity or term extension
    
Payment reduction
    
Total2
    
Percentage of total loan segment
  
Loans and leases held for investment, net
                        
Real estate:
                        
Commercial
  
$
-
    
$
712
    
$
712
      
0.05
%
Agricultural
    
-
      
-
      
-
      
0.00
%
Residential and home equity
    
-
      
-
      
-
      
0.00
%
Construction
    
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
712
      
712
      
0.03
%
Commercial & industrial
    
4,087
      
-
      
4,087
      
0.77
%
Agricultural
    
-
      
-
      
-
      
0.00
%
Commercial leases
    
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
0.00
%
Total
  
$
4,087
    
$
712
    
$
4,799
      
0.13
%

1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.
2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $0 million during the three months ended June 30, 2026.

During the three months ended June 30, 2026, the Company modified one commercial real estate loan with a monthly payment reduction, and two commercial & industrial loans with contractual term extensions of three months.

   
Six Months Ended June 30, 2026
        
   
Amortized cost associated with the following modification types:
        
(Dollars in thousands)
  
Maturity or term extension
    
Payment reduction
    
Total2
    
Percentage of total loan segment
  
Loans and leases held for investment, net
                        
Real estate:
                        
Commercial
  
$
-
    
$
712
    
$
712
      
0.05
%
Agricultural
    
-
      
-
      
-
      
0.00
%
Residential and home equity
    
-
      
-
      
-
      
0.00
%
Construction
    
-
      
-
      
-
      
0.00
%
Total real estate
    
-
      
712
      
712
      
0.03
%
Commercial & industrial
    
4,087
      
-
      
4,087
      
0.77
%
Agricultural
    
-
      
-
      
-
      
0.00
%
Commercial leases
    
-
      
-
      
-
      
0.00
%
Consumer and other
    
-
      
-
      
-
      
0.00
%
Total
  
$
4,087
    
$
712
    
$
4,799
      
0.13
%

1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.
2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $0 million during the six months ended June 30, 2026.
During the three months ended June 30, 2025, the Company modified one $34,000 home equity loan with a 10-year maturity extension and re-amortization.

   
Six Months Ended June 30, 2025
        
   
Amortized cost associated with the following modification types:
        
(Dollars in thousands)
  
Maturity or term extension
    
Payment deferral
    
Multiple
modification types1
    
Total2
    
Percentage of total loan segment
  
Loans and leases held for investment, net
                              
Real estate:
                              
Commercial
  
$
-
    
$
-
   $
 -    
$
-
      
0.000
%
Agricultural
    
983
      
-
     1,656      
2,639
      
0.366
%
Residential and home equity
    
34
      
-
     -      
34
      
0.008
%
Construction
    
-
      
-
     -      
-
      
0.000
%
Total real estate
    
1,017
      
-
     1,656      
2,673
      
0.099
%
Commercial & industrial
    
-
      
-
     -      
-
      
0.000
%
Agricultural
    
43
      
-
     -      
43
      
0.016
%
Commercial leases
    
-
      
-
     -      
-
      
0.000
%
Consumer and other
    
-
      
-
     -      
-
      
0.000
%
Total
  
$
1,060
    
$
-
   $
 1,656    
$
2,716
      
0.075
%

1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.
2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $0 million during the six months ended June 30, 2025.
Credit Quality Indicators for Loans and Leases Held-for-Investment
The following tables present outstanding loan and lease balances held for investment net of unearned income by segment, credit risk rating categories, vintage year by segment of financing receivable, and current period gross charge-offs by year of origination as follows:

   
June 30, 2026
  
   
Term Loans Amortized Cost Basis by Origination Year
                          
(Dollars in thousands)
  
2026
    
2025
    
2024
    
2023
    
2022
    
Prior
    
Revolving
Loans
Amortized
Cost
    
Revolving
Loans
Converted
to Term
    
Total
  
Net loans and leases held for investment
                                                      
Real estate:
                                                      
Commercial
                                                      
Pass
  
$
91,155
    
$
197,201
    
$
35,903
    
$
95,907
    
$
132,077
    
$
504,142
    
$
333,967
    
$
142,367
    
$
1,532,719
  
Special mention
    
-
      
225
      
-
      
-
      
-
      
-
      
-
      
-
      
225
  
Substandard
    
-
      
-
      
-
      
-
      
712
      
-
      
-
      
-
      
712
  
Total Commercial
  
$
91,155
    
$
197,426
    
$
35,903
    
$
95,907
    
$
132,789
    
$
504,142
    
$
333,967
    
$
142,367
    
$
1,533,656
  
Commercial
                                                                        
Current-period gross charge-offs
  
$
75
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
75
  
                                                                         
Agricultural
                                                                        
Pass
  
$
11,661
    
$
43,525
    
$
23,671
    
$
33,266
    
$
60,663
    
$
188,784
    
$
267,436
    
$
49,147
    
$
678,153
  
Special mention
    
-
      
3,139
      
-
      
-
      
-
      
3,032
      
6,498
      
-
      
12,669
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
1,732
      
-
      
1,732
  
Total Agricultural
  
$
11,661
    
$
46,664
    
$
23,671
    
$
33,266
    
$
60,663
    
$
191,816
    
$
275,666
    
$
49,147
    
$
692,554
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Residential and home equity
                                                                        
Pass
  
$
18,285
    
$
34,529
    
$
26,442
    
$
28,311
    
$
48,822
    
$
195,562
    
$
51,498
    
$
341
    
$
403,790
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
12
      
-
      
-
      
12
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
203
      
-
      
203
  
Total Residential and home equity
  
$
18,285
    
$
34,529
    
$
26,442
    
$
28,311
    
$
48,822
    
$
195,574
    
$
51,701
    
$
341
    
$
404,005
  
Residential and home equity
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Construction
                                                                        
Pass
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
99,875
    
$
13,900
    
$
115,150
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
99,875
    
$
13,900
    
$
115,150
  
Construction
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Total Real estate
  
$
121,101
    
$
278,619
    
$
86,016
    
$
157,484
    
$
242,274
    
$
892,907
    
$
761,209
    
$
205,755
    
$
2,745,365
  
                                                                         
Commercial & industrial
                                                                        
Pass
  
$
14,690
    
$
36,814
    
$
15,288
    
$
22,478
    
$
10,274
    
$
15,995
    
$
380,938
    
$
26,183
    
$
522,660
  
Special mention
    
-
      
-
      
-
      
-
      
26
      
-
      
505
      
4,087
      
4,618
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
230
      
-
      
230
  
Total Commercial & industrial
  
$
14,690
    
$
36,814
    
$
15,288
    
$
22,478
    
$
10,300
    
$
15,995
    
$
381,673
    
$
30,270
    
$
527,508
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
505
    
$
-
    
$
-
    
$
-
    
$
-
    
$
505
  
    June 30, 2026  
   
Term Loans Amortized Cost Basis by Origination Year
                          
(Dollars in thousands)
  
2026

2025

2024

2023

2022

Prior

Revolving
Loans
Amortized
Cost

Revolving
Loans
Converted
to Term

Total
  
Agricultural
                                                      
Pass
  
$
133
    
$
296
    
$
2,662
    
$
1,954
    
$
1,572
    
$
2,722
    
$
236,136
    
$
10,225
    
$
255,700
  
Special mention
    
-
      
-
      
-
      
-
      
24
      
-
      
-
      
43
      
67
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
133
    
$
296
    
$
2,662
    
$
1,954
    
$
1,596
    
$
2,722
    
$
236,136
    
$
10,268
    
$
255,767
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Commercial leases
                                                                        
Pass
  
$
11,460
    
$
24,429
    
$
27,264
    
$
63,293
    
$
19,928
    
$
24,451
    
$
-
    
$
-
    
$
170,825
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial leases
  
$
11,460
    
$
24,429
    
$
27,264
    
$
63,293
    
$
19,928
    
$
24,451
    
$
-
    
$
-
    
$
170,825
  
Commercial leases
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Consumer and other
                                                                        
Pass
  
$
653
    
$
1,012
    
$
272
    
$
416
    
$
181
    
$
838
    
$
809
    
$
-
    
$
4,181
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
205
      
-
      
-
      
-
      
-
      
6
      
-
      
-
      
211
  
Total Consumer and other
  
$
858
    
$
1,012
    
$
272
    
$
416
    
$
181
    
$
844
    
$
809
    
$
-
    
$
4,392
  
Consumer and other
                                                                        
Current-period gross charge-offs
  
$
16
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
16
  
Total net loans and leases
                                                                        
Pass
  
$
148,037
    
$
337,806
    
$
131,502
    
$
245,625
    
$
273,517
    
$
933,869
    
$
1,370,659
    
$
242,163
    
$
3,683,178
  
Special mention
    
-
      
3,364
      
-
      
-
      
50
      
3,044
      
7,003
      
4,130
      
17,591
  
Substandard
    
205
      
-
      
-
      
-
      
712
      
6
      
2,165
      
-
      
3,088
  
Total net loans and leases
  
$
148,242
    
$
341,170
    
$
131,502
    
$
245,625
    
$
274,279
    
$
936,919
    
$
1,379,827
    
$
246,293
    
$
3,703,857
  
Total current-period gross charge-offs
  
$
91
    
$
-
    
$
-
    
$
505
    
$
-
    
$
-
    
$
-
    
$
-
    
$
596
  
   
December 31, 2025
  
   
Term Loans Amortized Cost Basis by Origination Year
                          
(Dollars in thousands)
  
2025
    
2024
    
2023
    
2022
    
2021
    
Prior
    
Revolving
Loans
Amortized
Cost
    
Revolving
Loans
Converted
to Term
    
Total
  
Net loans and leases held for investment
                                                      
Real estate:
                                                      
Commercial
                                                      
Pass
  
$
201,486
    
$
38,557
    
$
103,052
    
$
135,472
    
$
192,814
    
$
356,496
    
$
290,112
    
$
146,371
    
$
1,464,360
  
Special mention
    
225
      
-
      
-
      
-
      
7,248
      
-
      
-
      
-
      
7,473
  
Substandard
    
-
      
-
      
-
      
750
      
-
      
-
      
-
      
-
      
750
  
Total Commercial
  
$
201,711
    
$
38,557
    
$
103,052
    
$
136,222
    
$
200,062
    
$
356,496
    
$
290,112
    
$
146,371
    
$
1,472,583
  
Commercial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
380
    
$
-
    
$
-
    
$
-
    
$
-
    
$
380
  
                                                                         
Agricultural
                                                                        
Pass
  
$
46,027
    
$
23,735
    
$
35,874
    
$
62,515
    
$
41,110
    
$
161,982
    
$
274,736
    
$
48,493
    
$
694,472
  
Special mention
    
3,151
      
-
      
-
      
-
      
-
      
3,085
      
4,960
      
-
      
11,196
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
49,178
    
$
23,735
    
$
35,874
    
$
62,515
    
$
41,110
    
$
165,067
    
$
279,696
    
$
48,493
    
$
705,668
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
180
    
$
939
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,119
  
                                                                         
Residential and home equity
                                                                        
Pass
  
$
35,670
    
$
29,212
    
$
31,874
    
$
50,922
    
$
76,178
    
$
128,370
    
$
52,266
    
$
352
    
$
404,844
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
34
      
-
      
-
      
34
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
202
      
-
      
202
  
Total Residential and home equity
  
$
35,670
    
$
29,212
    
$
31,874
    
$
50,922
    
$
76,178
    
$
128,404
    
$
52,468
    
$
352
    
$
405,080
  
Residential and home equity
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Construction
                                                                        
Pass
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
112,904
    
$
13,900
    
$
128,179
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
1,375
    
$
112,904
    
$
13,900
    
$
128,179
  
Construction
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Total Real estate
  
$
286,559
    
$
91,504
    
$
170,800
    
$
249,659
    
$
317,350
    
$
651,342
    
$
735,180
    
$
209,116
    
$
2,711,510
  
                                                                         
Commercial & industrial
                                                                        
Pass
  
$
39,666
    
$
21,289
    
$
29,692
    
$
16,244
    
$
13,167
    
$
5,310
    
$
337,525
    
$
30,455
    
$
493,348
  
Special mention
    
-
      
-
      
-
      
40
      
-
      
-
      
50
      
4,262
      
4,352
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial & industrial
  
$
39,666
    
$
21,289
    
$
29,692
    
$
16,284
    
$
13,167
    
$
5,310
    
$
337,575
    
$
34,717
    
$
497,700
  
Commercial & industrial
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
70
    
$
98
    
$
53
    
$
12
    
$
-
    
$
-
    
$
233
  
   
December 31, 2025
  
   
Term Loans Amortized Cost Basis by Origination Year
                          
(Dollars in thousands)
   2025     2024     2023     2022     2021     Prior    
Revolving
Loans
Amortized
Cost
    
Revolving
Loans
Converted
to Term
    
Total
  
Net loans and leases held for investment
                                                      
Agricultural
                                                      
Pass
  
$
3,104
    
$
2,857
    
$
2,312
    
$
1,772
    
$
1,020
    
$
2,264
    
$
245,438
    
$
5,278
    
$
264,045
  
Special mention
    
-
      
-
      
-
      
29
      
-
      
-
      
-
      
43
      
72
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Agricultural
  
$
3,104
    
$
2,857
    
$
2,312
    
$
1,801
    
$
1,020
    
$
2,264
    
$
245,438
    
$
5,321
    
$
264,117
  
Agricultural
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
200
    
$
34
    
$
-
    
$
-
    
$
-
    
$
234
  
                                                                         
Commercial leases
                                                                        
Pass
  
$
25,516
    
$
29,201
    
$
67,198
    
$
21,749
    
$
5,854
    
$
21,429
    
$
-
    
$
-
    
$
170,947
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total Commercial leases
  
$
25,516
    
$
29,201
    
$
67,198
    
$
21,749
    
$
5,854
    
$
21,429
    
$
-
    
$
-
    
$
170,947
  
Commercial leases
                                                                        
Current-period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Consumer and other
                                                                        
Pass
  
$
1,244
    
$
478
    
$
609
    
$
234
    
$
23
    
$
1,001
    
$
879
    
$
-
    
$
4,468
  
Special mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
192
      
-
      
-
      
-
      
-
      
11
      
-
      
-
      
203
  
Total Consumer and other
  
$
1,436
    
$
478
    
$
609
    
$
234
    
$
23
    
$
1,012
    
$
879
    
$
-
    
$
4,671
  
Consumer and other
                                                                        
Current-period gross charge-offs
  
$
37
    
$
3
    
$
-
    
$
-
    
$
-
    
$
10
    
$
-
    
$
-
    
$
50
  
Total net loans and leases
                                                                        
Pass
  
$
352,713
    
$
145,329
    
$
270,611
    
$
288,908
    
$
330,166
    
$
678,227
    
$
1,313,860
    
$
244,849
    
$
3,624,663
  
Special mention
    
3,376
      
-
      
-
      
69
      
7,248
      
3,119
      
5,010
      
4,305
      
23,127
  
Substandard
    
192
      
-
      
-
      
750
      
-
      
11
      
202
      
-
      
1,155
  
Total net loans and leases
  
$
356,281
    
$
145,329
    
$
270,611
    
$
289,727
    
$
337,414
    
$
681,357
    
$
1,319,072
    
$
249,154
    
$
3,648,945
  
Total current-period gross charge-offs
  
$
37
    
$
3
    
$
250
    
$
1,617
    
$
87
    
$
22
    
$
-
    
$
-
    
$
2,016
  
Activity in Loans to Certain Directors and Executive Officers Activity in such loans is summarized as follows:
(Dollars in thousands)
  
June 30,
2026
    
December 31,
2025
  
             
Balance at beginning of the period
  
$
13,300
    
$
15,626
  
New loans or advances during year
    
390
      
495
  
Effect of changes in composition of related parties
    
-
      
(80
)
Repayments
    
(131
)
    
(2,741
)
Balance at end of period
  
$
13,559
    
$
13,300
  
Amortized Cost of Collateral Dependent Loans by Class
The following table presents the amortized cost basis for collateral dependent loans and leases by type as of the dates indicated:

 
  
June 30, 2026
  
(Dollars in thousands)
  
Real Estate
  
Collateral dependent loans and leases
      
Real estate:
      
Commercial
  
$
712
  
Agricultural
    
4,016
  
Residential and home equity
    
-
  
Construction
    
-
  
Total real estate
    
4,728
  
Commercial & industrial
    
-
  
Agricultural
    
-
  
Commercial leases
    
-
  
Consumer and other
    
-
  
Total gross loans and leases
  
$
4,728
  

 
  
December 31, 2025
  
(Dollars in thousands)
  
Real Estate
  
Collateral dependent loans and leases
      
Real estate:
      
Commercial
  
$
7,998
  
Agricultural
    
-
  
Residential and home equity
    
-
  
Construction
    
-
  
Total real estate
    
7,998
  
Commercial & industrial
    
-
  
Agricultural
    
-
  
Commercial leases
    
-
  
Consumer and other
    
-
  
Total gross loans and leases
  
$
7,998
  
Changes in ACL on Loans and Leases
The following tables present a summary of the activity in the ACL for loan and lease losses and the ACL for unfunded loan commitments for the periods indicated:

   
For the Three Months Ended June 30,
  
   
2026
    
2025
  
(Dollars in thousands)
  
ACL for
Loans and
Leases
    
ACL for
Unfunded
Commitments
    
Allowance
for
Credit Losses
    
ACL for
Loans and
Leases
    
ACL for
Unfunded
Commitments
    
Allowance
for
Credit Losses
  
Balance at beginning of period
  
$
76,918
    
$
3,300
    
$
80,218
    
$
75,423
    
$
2,690
    
$
78,113
  
Provision for credit losses
    
500
      
-
      
500
      
1,290
      
110
      
1,400
  
Charge-offs
    
(588
)
    
-
      
(588
)
    
(569
)
    
-
      
(569
)
Recoveries
    
423
      
-
      
423
      
25
      
-
      
25
  
Net charge-offs
    
(165
)
    
-
      
(165
)
    
(544
)
    
-
      
(544
)
Balance at end of period
  
$
77,253
    
$
3,300
    
$
80,553
    
$
76,169
    
$
2,800
    
$
78,969
  

   
For the Six Months Ended June 30,
  
   
2026
    
2025
  
(Dollars in thousands)
  
ACL for
Loans and
Leases
    
ACL for
Unfunded
Commitments
    
Allowance
for
Credit Losses
    
ACL for
Loans and
Leases
    
ACL for
Unfunded
Commitments
    
Allowance
for
Credit Losses
  
Balance at beginning of period
  
$
76,375
    
$
3,300
    
$
79,675
    
$
75,283
    
$
2,690
    
$
77,973
  
Provision for credit losses
    
1,000
      
-
      
1,000
      
1,590
      
110
      
1,700
  
Charge-offs
    
(596
)
    
-
      
(596
)
    
(842
)
    
-
      
(842
)
Recoveries
    
474
      
-
      
474
      
138
      
-
      
138
  
Net charge-offs
    
(122
)
    
-
      
(122
)
    
(704
)
    
-
      
(704
)
Balance at end of period
  
$
77,253
    
$
3,300
    
$
80,553
    
$
76,169
    
$
2,800
    
$
78,969
  

Changes in the ACL on loans and leases for the periods indicated are as follows:

   
For the Three Months Ended June 30, 2026
  
(Dollars in thousands)
  
Balance at
beginning of
period
    
Provision
for/(recapture of)
credit losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of period
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
21,935
    
$
1,108
    
$
(75
)
  
$
11
    
$
22,979
  
Agricultural
    
22,481
      
451
      
-
      
75
      
23,007
  
Residential and home equity
    
7,480
      
165
      
-
      
19
      
7,664
  
Construction
    
2,846
      
(757
)
    
-
      
-
      
2,089
  
Total real estate
    
54,742
      
967
      
(75
)
    
105
      
55,739
  
Commercial & industrial
    
9,100
      
(266
)
    
(505
)
    
317
      
8,646
  
Agricultural
    
7,173
      
(150
)
    
-
      
-
      
7,023
  
Commercial leases
    
5,682
      
(64
)
    
-
      
-
      
5,618
  
Consumer and other
    
221
      
13
      
(8
)
    
1
      
227
  
Total allowance for credit losses
  
$
76,918
    
$
500
    
$
(588
)
  
$
423
    
$
77,253
  
   
For the Three Months Ended June 30, 2025
  
(Dollars in thousands)
  
Balance at
beginning of
period
    
Provision
for/(recapture of)
credit losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of period
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
20,313
    
$
808
    
$
(175
)
  
$
-
    
$
20,946
  
Agricultural
    
24,077
      
572
      
(180
)
    
-
      
24,469
  
Residential and home equity
    
7,479
      
118
      
-
      
2
      
7,599
  
Construction
    
2,648
      
118
      
-
      
-
      
2,766
  
Total real estate
    
54,517
      
1,616
      
(355
)
    
2
      
55,780
  
Commercial & industrial
    
7,843
      
(534
)
    
-
      
17
      
7,326
  
Agricultural
    
6,417
      
765
      
(200
)
    
-
      
6,982
  
Commercial leases
    
6,429
      
(571
)
    
-
      
-
      
5,858
  
Consumer and other
    
217
      
14
      
(14
)
    
6
      
223
  
Total allowance for credit losses
  
$
75,423
    
$
1,290
    
$
(569
)
  
$
25
    
$
76,169
  

   
For the Six Months Ended June 30, 2026
  
(Dollars in thousands)
  
Balance at
beginning of
period
    
Provision
for/(recapture of)
credit losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of period
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
22,574
    
$
470
    
$
(75
)
  
$
10
    
$
22,979
  
Agricultural
    
23,647
      
(716
)
    
-
      
76
      
23,007
  
Residential and home equity
    
7,620
      
1
      
-
      
43
      
7,664
  
Construction
    
2,311
      
(222
)
    
-
      
-
      
2,089
  
Total real estate
    
56,152
      
(467
)
    
(75
)
    
129
      
55,739
  
Commercial & industrial
    
7,355
      
1,467
      
(505
)
    
329
      
8,646
  
Agricultural
    
6,760
      
263
      
-
      
-
      
7,023
  
Commercial leases
    
5,861
      
(243
)
    
-
      
-
      
5,618
  
Consumer and other
    
247
      
(20
)
    
(16
)
    
16
      
227
  
Total allowance for credit losses
  
$
76,375
    
$
1,000
    
$
(596
)
  
$
474
    
$
77,253
  

   
For the Six Months Ended June 30, 2025
  
(Dollars in thousands)
  
Balance at
beginning of
period
    
Provision
for/(recapture of)
credit losses
    
Charge-Offs
    
Recoveries
    
Balance at
end of period
  
Allowance for credit losses:
                              
Real estate:
                              
Commercial
  
$
20,382
    
$
739
    
$
(175
)
  
$
-
    
$
20,946
  
Agricultural
    
23,615
      
1,034
      
(180
)
    
-
      
24,469
  
Residential and home equity
    
7,340
      
253
      
-
      
6
      
7,599
  
Construction
    
3,055
      
(289
)
    
-
      
-
      
2,766
  
Total real estate
    
54,392
      
1,737
      
(355
)
    
6
      
55,780
  
Commercial & industrial
    
7,791
      
(356
)
    
(232
)
    
123
      
7,326
  
Agricultural
    
6,725
      
491
      
(234
)
    
-
      
6,982
  
Commercial leases
    
6,153
      
(295
)
    
-
      
-
      
5,858
  
Consumer and other
    
222
      
13
      
(21
)
    
9
      
223
  
Total allowance for credit losses
  
$
75,283
    
$
1,590
    
$
(842
)
  
$
138
    
$
76,169