Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2026

Loans by Type as Percentage of Portfolio

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


	June 30, 2026					December 31, 2025
(Dollars in thousands)	Balance		%			Balance		%			Percent Increase (Decrease)
Agricultural	$	49,672		1.62	%	$	56,218		1.86	%		(11.6	)	%
Commercial and Industrial		411,187		13.38	%		352,556		11.67	%		16.6		%
Commercial Real Estate		1,730,214		56.31	%		1,780,396		58.91	%		(2.8	)	%
Consumer		26,121		0.85	%		26,701		0.88	%		(2.2	)	%
Construction Real Estate		25,230		0.82	%		19,139		0.63	%		31.8		%
Residential Real Estate		776,822		25.28	%		728,037		24.09	%		6.7		%
Mortgage Warehouse Advances		53,535		1.74	%		58,987		1.95	%		(9.2	)	%
Gross Loans	$	3,072,781				$	3,022,034

Allowance for credit losses		35,738		1.16	%		35,550		1.18	%

Net loans	$	3,037,043				$	2,986,484

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															Mortgage
(Dollars in thousands)				And						Commercial			Construction			Residential			Warehouse
	Agricultural			Industrial			Consumer			Real Estate			Real Estate			Real Estate			Advances			Total
Allowance for Credit Losses Three Months Ended June 30, 2026
Beginning balance	$	171		$	8,925		$	563		$	15,751		$	47		$	9,962		$	77		$	35,496
Charge-offs		-			(364	)		(201	)		-			-			-			-			(565	)
Recoveries		-			153			95			-			-			9			-			257
Provision		11			(247	)		121			330			5			327			3			550
Ending balance	$	182		$	8,467		$	578		$	16,081		$	52		$	10,298		$	80		$	35,738

Allowance for Credit Losses Six Months Ended June 30, 2026
Beginning balance	$	219		$	6,797		$	693		$	18,416		$	80		$	9,257		$	88		$	35,550
Charge-offs					(364	)		(405	)								(26	)					(795	)
Recoveries					173			242									18						433
Provision		(37	)		1,861			48			(2,335	)		(28	)		1,049			(8	)		550
Ending balance	$	182		$	8,467		$	578		$	16,081		$	52		$	10,298		$	80		$	35,738

Loans
June 30, 2026
Ending loan balance	$	49,672		$	411,187		$	26,121		$	1,730,214		$	25,230		$	776,822		$	53,535		$	3,072,781


			Commercial														Mortgage
(Dollars in thousands)			and						Commercial			Construction		Residential			Warehouse
	Agricultural		Industrial			Consumer			Real Estate			Real Estate		Real Estate			Advances		Total
Allowance for Credit Losses
Twelve Months Ended December 31, 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				(245	)		(720	)		(416	)				(76	)				(1,457	)
Recoveries				9			380								29					418
Provision		127		1,810			300			7,581			21		5,246			28		15,113
Ending balance	$	219	$	6,797		$	693		$	18,416		$	80	$	9,257		$	88	$	35,550
Loans
December 31, 2025
Ending loan balance	$	56,218	$	352,556		$	26,701		$	1,780,396		$	19,139	$	728,037		$	58,987	$	3,022,034


				Commercial
(Dollars in thousands)				and						Commercial			Construction		Residential			Mortgage
	Agricultural			Industrial			Consumer			Real Estate			Real Estate		Real Estate			Warehouse Advances			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
Cumulative effect of change in accounting principle		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
Loans
June 30, 2025
Ending loan balance	$	47,273		$	351,367		$	29,741		$	1,743,541		$	21,508	$	724,329		$	3,033		$	2,920,792

Schedule of Information Regarding Credit Exposure

The following tables reflect the amortized cost basis of loans as of June 30, 2026 based on year of origination (dollars in thousands). The current year-to-date gross write offs reflect six months ended June 30, 2026 gross write offs:


Commercial:	2026		2025		2024		2023		2022		Prior		Term Loans Total		Revolving Loans		Grand Total
Agricultural
Pass	$	4,304	$	4,298	$	3,831	$	1,345	$	3,354	$	19,440	$	36,572	$	12,517	$	49,089
Special mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		266		-		219		485		98		583
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	4,304	$	4,298	$	3,831	$	1,611	$	3,354	$	19,659	$	37,057	$	12,615	$	49,672
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial and Industrial
Pass	$	35,644	$	52,886	$	34,799	$	12,715	$	29,770	$	27,555	$	193,369	$	204,579	$	397,948
Special mention		-		-		106		-		29		217		352		174		526
Substandard		-		-		589		4,615		246		3,091		8,541		4,172		12,713
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	35,644	$	52,886	$	35,494	$	17,330	$	30,045	$	30,863	$	202,262	$	208,925	$	411,187
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	13	$	350	$	363	$	-	$	363

Commercial Real Estate
Pass	$	77,853	$	204,349	$	167,383	$	120,812	$	313,300	$	556,830	$	1,440,527	$	245,250	$	1,685,777
Special mention		-		4,594		553		363		13,448		11,745		30,703		239		30,942
Substandard		-		-		108		2,274		7,863		3,125		13,370		125		13,495
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	77,853	$	208,943	$	168,044	$	123,449	$	334,611	$	571,700	$	1,484,600	$	245,614	$	1,730,214
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total Commercial Loans	$	117,801	$	266,127	$	207,369	$	142,390	$	368,010	$	622,222	$	1,723,919	$	467,154	$	2,191,073


Retail:	2026		2025		2024		2023		2022		Prior		Term Loans Total		Revolving Loans		Grand Total
Consumer
Performing	$	5,459	$	5,018	$	3,031	$	3,898	$	3,432	$	4,085	$	24,923	$	1,113	$	26,036
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		1		-		13		4		38		56		29		85
Total	$	5,459	$	5,019	$	3,031	$	3,911	$	3,436	$	4,123	$	24,979	$	1,142	$	26,121
Current year-to-date gross write-offs (1)	$	1	$	1	$	-	$	-	$	2	$	2	$	6	$	-	$	6

Construction real estate
Performing	$	1,222	$	2,604	$	-	$	-	$	-	$	471	$	4,297	$	20,933	$	25,230
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		-		-
Total	$	1,222	$	2,604	$	-	$	-	$	-	$	471	$	4,297	$	20,933	$	25,230
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Residential real estate
Performing	$	86,045	$	68,357	$	47,380	$	49,039	$	150,524	$	252,413	$	653,758	$	111,818	$	765,576
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		306		1,335		1,476		3,041		4,537		10,695		551		11,246
Total	$	86,045	$	68,663	$	48,715	$	50,515	$	153,565	$	256,950	$	664,453	$	112,369	$	776,822
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	26	$	-	$	-	$	26	$	-	$	26

Mortgage warehouse advances
Performing	$	53,535	$	-	$	-	$	-	$	-	$	-	$	53,535	$	-	$	53,535
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		-		-
Total	$	53,535	$	-	$	-	$	-	$	-	$	-	$	53,535	$	-	$	53,535
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total Retail Loans	$	146,261	$	76,286	$	51,746	$	54,426	$	157,001	$	261,544	$	747,264	$	134,444	$	881,708

(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 2026 were $400,000 or an annualized $800,000 compared to $561,000 during the full year 2025.

The following tables reflect the amortized cost basis of loans as of December 31, 2025 based on year of origination (dollars in thousands). The current year-to-date gross write offs reflect six months ended June 30, 2025 gross write offs:


Commercial:	2025		2024		2023		2022		2021		Prior		Term Loans Total		Revolving Loans		Grand Total
Agricultural
Pass	$	7,046	$	4,057	$	1,903	$	3,832	$	4,875	$	19,748	$	41,461	$	14,428	$	55,889
Special mention		-		-		-		-		-		153		153		-		153
Substandard		-		-		176		-		-		-		176		-		176
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	7,046	$	4,057	$	2,079	$	3,832	$	4,875	$	19,901	$	41,790	$	14,428	$	56,218
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial and Industrial
Pass	$	52,768	$	42,364	$	17,453	$	34,720	$	11,549	$	19,185	$	178,039	$	162,004	$	340,043
Special mention		-				-		127		154		99		380		-		380
Substandard		-		186		5,514		45		1,415		1,697		8,857		3,276		12,133
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	52,768	$	42,550	$	22,967	$	34,892	$	13,118	$	20,981	$	187,276	$	165,280	$	352,556
Current year-to-date gross write-offs (1)	$	-	$	-	$	10	$	-	$	-	$	-	$	10	$	-	$	10

Commercial Real Estate
Pass	$	237,396	$	179,922	$	130,368	$	333,082	$	231,358	$	400,392	$	1,512,518	$	239,552	$	1,752,070
Special mention		-		-		-		13,977		1,549		42		15,568		-		15,568
Substandard		-		109		1,624		7,865		-		3,160		12,758		-		12,758
Doubtful		-		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-		-
Total	$	237,396	$	180,031	$	131,992	$	354,924	$	232,907	$	403,594	$	1,540,844	$	239,552	$	1,780,396
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	108	$	-	$	100	$	208	$	-	$	208

Total Commercial Loans	$	297,210	$	226,638	$	157,038	$	393,648	$	250,900	$	444,476	$	1,769,910	$	419,260	$	2,189,170


Retail:	2025		2024		2023		2022		2021		Prior		Term Loans Total		Revolving Loans		Grand Total
Consumer
Performing	$	6,352	$	3,959	$	4,874	$	5,520	$	3,079	$	2,057	$	25,841	$	759	$	26,600
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		1		17		6		42		6		72		29		101
Total	$	6,352	$	3,960	$	4,891	$	5,526	$	3,121	$	2,063	$	25,913	$	788	$	26,701
Current year-to-date gross write-offs (1)	$	4	$	23	$	76	$	11	$	6	$	6	$	126	$	-	$	126

Construction real estate
Performing	$	1,419	$	998	$	-	$	-	$	493	$	-	$	2,910	$	16,229	$	19,139
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		-		-
Total	$	1,419	$	998	$	-	$	-	$	493	$	-	$	2,910	$	16,229	$	19,139
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Residential real estate
Performing	$	69,917	$	53,631	$	59,933	$	157,022	$	107,022	$	156,130	$	603,655	$	113,448	$	717,103
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		96		701		1,156		3,165		2,677		2,600		10,395		539		10,934
Total	$	70,013	$	54,332	$	61,089	$	160,187	$	109,699	$	158,730	$	614,050	$	113,987	$	728,037
Current year-to-date gross write-offs (1)	$	-	$	-	$	17	$	4	$	30	$	1	$	52	$	-	$	52

Mortgage warehouse advances
Performing	$	58,987	$	-	$	-	$	-	$	-	$	-	$	58,987	$	-	$	58,987
Nonperforming		-		-		-		-		-		-		-		-		-
Nonaccrual		-		-		-		-		-		-		-		-		-
Total	$	58,987	$	-	$	-	$	-	$	-	$	-	$	58,987	$	-	$	58,987
Current year-to-date gross write-offs (1)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total Retail Loans	$	136,771	$	59,290	$	65,980	$	165,713	$	113,313	$	160,793	$	701,860	$	131,004	$	832,864

(1) It is noted that write-offs in the tables above do not include checking account write-offs. Checking account write-offs were $266,000 for the first six months of 2025 and $561,000 during the full year 2025.

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

The following table presents 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 full year 2025. There were no loans modified to borrowers experiencing financial difficulty during the first six months of 2026.


For the period ended:	December 31, 2025

	Term Extension
			% of Total
			Class of
(Dollars in thousands)	Amortized		Financing
	Cost Basis		Receivable
Residential real estate	$	128		0	%
Total	$	128

The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable during the full year 2025. There were no loans modified to borrowers experiencing financial difficulty during the first six months of 2026.


For the period ended:	December 31, 2025
	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, 2026
(Dollars in thousands)	Term extension
	Term extension
Residential real estate	$	124
Total	$	124


For the period ended:	December 31, 2025
(Dollars in thousands)	Term extension

Residential real estate	$	128
Total	$	128

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, 2026
(Dollars in thousands)	Current		30-89 days		Greater than 90 days		Total
	Current		30-89 days		Greater than 90 days		Total
Residential real estate	$	-	$	124	$	-	$	124
Total	$	-	$	124	$	-	$	124


For the period ended:	December 31, 2025
(Dollars in thousands)	Current		30-89 days		Greater than 90 days		Total

Residential real estate	$	-	$	128	$	-	$	128
Total	$	-	$	128	$	-	$	128

Nonaccrual Loans by Loan Category and Interest Income Recognized

Nonaccrual loans by loan category were as follows and the interest income recognized during the period on those nonaccrual loans:


As of June 30, 2026
(Dollars in thousands)	Nonaccrual loans with no ACL		Nonaccrual loans with ACL		Interest income recognized year to date on nonaccrual loans
Agricultural	$	266	$	144	$	7
Commercial and industrial		-		5,624		-
Consumer		-		85		-
Commercial real estate		-		13,539		-
Residential real estate		2,550		8,696		22
Total nonaccrual loans	$	2,816	$	28,088	$	29


As of December 31, 2025
(Dollars in thousands)	Nonaccrual loans with no ACL		Nonaccrual loans with ACL		Interest income recognized year to date on nonaccrual loans
Commercial and industrial	$	966	$	7,037	$	2
Consumer		-		101		6
Commercial real estate		-		8,020		-
Residential real estate		2,267		8,667		125
Total nonaccrual loans	$	3,233	$	23,825	$	133

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, 2026
Agricultural	$	305	$	-	$	410	$	715	$	48,957	$	49,672	$	-
Commercial and industrial		3,101		222		5,624		8,947		402,240		411,187		-
Consumer		298		10		37		345		25,776		26,121		-
Commercial real estate		1,037		-		13,539		14,576		1,715,638		1,730,214		-
Construction real estate		-		-		-		-		25,230		25,230		-
Residential real estate		844		5,511		5,176		11,531		765,291		776,822		-
Mortgage warehouse advances		-		-		-		-		53,535		53,535		-
	$	5,585	$	5,743	$	24,786	$	36,114	$	3,036,667	$	3,072,781	$	-


					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, 2025
Agricultural	$	-	$	-	$	-	$	-	$	56,218	$	56,218	$	-
Commercial and industrial		187		-		6,249		6,436		346,120		352,556		-
Consumer		102		38		62		202		26,499		26,701		-
Commercial real estate		547		211		8,020		8,778		1,771,618		1,780,396		-
Construction real estate		685		495		-		1,180		17,959		19,139		-
Residential real estate		10,844		4,671		4,952		20,467		707,570		728,037		-
Mortgage warehouse advances		-		-		-		-		58,987		58,987		-
	$	12,365	$	5,415	$	19,283	$	37,063	$	2,984,971	$	3,022,034	$	-

(1) Includes nonaccrual loans.

Schedule of Collateral Dependent Loans and Related Allowance For Credit Losses Allocated to Loans

The following tables present the collateral dependent loans and the related ACL allocated by segment of loans. All collateral dependent loans were secured by real estate, with the exception of those classified as commercial and industrial and consumer, which were secured by accounts receivable, inventory, vehicles or equipment.


	June 30, 2026				December 31, 2025
(Dollars in thousands)	Loan Balance		ACL Allocation		Loan Balance		ACL Allocation
Agricultural	$	583	$	12	$	3	$	-
Commercial and Industrial		5,176		2,460		1,500		8
Commercial Real Estate		16,002		2,555		7,715		1,714
Consumer		107		4		115		5
Residential Real Estate		17,064		545		11,195		361
Total	$	38,932	$	5,576	$	20,528	$	2,088