ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Tables)

9 Months Ended

Sep. 30, 2026

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Schedule of Activity in the Allowance for Credit Losses by Portfolio Segment

The following tables present the activity in the allowance for credit losses by portfolio segment for the periods shown:


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended September 30, 2026
Beginning balance, July 1	$	28,752	$	30,655	$	3,258	$	1,082	$	4,366	$	1,887	$	598	$	70,598
Provision for credit losses	785		(314)		(27)		(9)		200		268		297		1,200
Loans charged-off	(2,871)		0		0		0		(15)		(215)		0		(3,101)
Recoveries	35		26		0		0		8		64		0		133
Net loans (charged-off) recovered	(2,836)		26		0		0		(7)		(151)		0		(2,968)
Ending balance	$	26,701	$	30,367	$	3,231	$	1,073	$	4,559	$	2,004	$	895	$	68,830


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Three Months Ended September 30, 2025
Beginning balance, July 1	$	25,882	$	31,082	$	3,299	$	720	$	3,590	$	1,579	$	400	$	66,552
Provision for credit losses	1,447		(197)		(80)		(29)		460		428		(29)		2,000
Loans charged-off	(222)		0		0		0		(4)		(347)		0		(573)
Recoveries	42		27		0		0		16		104		0		189
Net loans (charged-off) recovered	(180)		27		0		0		12		(243)		0		(384)
Ending balance	$	27,149	$	30,912	$	3,219	$	691	$	4,062	$	1,764	$	371	$	68,168


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Nine Months Ended September 30, 2026
Beginning balance, January 1	$	28,436	$	30,163	$	3,315	$	1,041	$	3,996	$	1,719	$	325	$	68,995
Provision for credit losses	3,044		62		(84)		32		576		708		570		4,908
Loans charged-off	(4,951)		0		0		0		(127)		(650)		0		(5,728)
Recoveries	172		142		0		0		114		227		0		655
Net loans (charged-off) recovered	(4,779)		142		0		0		(13)		(423)		0		(5,073)
Ending balance	$	26,701	$	30,367	$	3,231	$	1,073	$	4,559	$	2,004	$	895	$	68,830


(dollars in thousands)	Commercial and Industrial		Commercial Real Estate and Multifamily Residential		Agri-business and Agricultural		Other Commercial		Consumer 1-4 Family Mortgage		Other Consumer		Unallocated		Total
Nine Months Ended September 30, 2025
Beginning balance, January 1	$	45,539	$	30,865	$	3,541	$	743	$	3,358	$	1,531	$	383	$	85,960
Provision for credit losses	10,335		(32)		(322)		(52)		878		1,005		(12)		11,800
Loans charged-off	(28,848)		0		0		0		(226)		(1,119)		0		(30,193)
Recoveries	123		79		0		0		52		347		0		601
Net loans (charged-off) recovered	(28,725)		79		0		0		(174)		(772)		0		(29,592)
Ending balance	$	27,149	$	30,912	$	3,219	$	691	$	4,062	$	1,764	$	371	$	68,168

Schedule of Risk Category of Loans by Loan Segment and Origination Date

The following table summarizes the risk category of loans by loan segment and year of origination as of September 30, 2026:


(dollars in thousands)	2026		2025		2024		2023		2022		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	807	$	194	$	295	$	0	$	0	$	131	$	1,427	$	734,911	$	736,338
Special Mention	0		0		0		0		0		0		0		31,424		31,424
Substandard	0		300		94		1,019		38		188		1,639		40,926		42,565
Doubtful	0		0		0		0		921		0		921		959		1,880

Total	807		494		389		1,019		959		319		3,987		808,220		812,207
Working capital lines of credit loans:
Current period gross write offs	0		1,975		0		0		0		50		2,025		0		2,025
Non-working capital loans:
Pass	198,310		196,729		71,954		77,506		80,606		25,820		650,925		203,525		854,450
Special Mention	601		1,538		1,945		2,251		8,152		3,211		17,698		6,529		24,227
Substandard	2,875		1,814		377		1,635		1,979		1,180		9,860		767		10,627
Doubtful	0		0		0		0		0		1,129		1,129		0		1,129
Not Rated	94		922		185		432		266		126		2,025		0		2,025
Total	201,880		201,003		74,461		81,824		91,003		31,466		681,637		210,821		892,458
Non-working capital loans:
Current period gross write offs	650		0		0		0		25		2,205		2,880		46		2,926
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	24,000		12,285		20,071		803		132		0		57,291		338,201		395,492
Special Mention	0		0		0		0		0		0		0		12,002		12,002



Total	24,000		12,285		20,071		803		132		0		57,291		350,203		407,494
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	117,709		128,737		93,099		79,532		89,323		197,235		705,635		30,178		735,813
Special Mention	0		2,412		528		419		13,578		12,498		29,435		0		29,435
Substandard	108		1,272		297		1,390		388		2,973		6,428		0		6,428


Total	117,817		132,421		93,924		81,341		103,289		212,706		741,498		30,178		771,676
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0


(dollars in thousands)	2026	2025	2024	2023	2022	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Pass	234,166	128,504	84,689	110,717	121,376	177,791	857,243	121,566	978,809
Special Mention	0	0	0	11,031	57	0	11,088	0	11,088
Substandard	0	0	0	0	0	0	0	1,958	1,958


Total	234,166	128,504	84,689	121,748	121,433	177,791	868,331	123,524	991,855
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	120,164	130,609	5,367	140,199	4,943	35,389	436,671	150,023	586,694
Special Mention	0	0	0	0	11,228	0	11,228	0	11,228



Total	120,164	130,609	5,367	140,199	16,171	35,389	447,899	150,023	597,922
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	58,753	25,326	10,210	14,172	32,504	33,988	174,953	12,007	186,960
Special Mention	0	1,956	0	180	0	0	2,136	0	2,136
Substandard	0	0	109	0	0	178	287	316	603


Total	58,753	27,282	10,319	14,352	32,504	34,166	177,376	12,323	189,699
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	4,353	2,757	9,390	4,174	16,292	11,254	48,220	100,582	148,802
Special Mention	1,483	0	0	1,084	236	0	2,803	4,623	7,426
Substandard	0	0	0	0	0	0	0	2,374	2,374


Total	5,836	2,757	9,390	5,258	16,528	11,254	51,023	107,579	158,602
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	3,175	9,547	990	11,958	23,398	12,593	61,661	58,779	120,440




Total	3,175	9,547	990	11,958	23,398	12,593	61,661	58,779	120,440
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0


(dollars in thousands)	2026		2025		2024		2023		2022		Prior		Term Total		Revolving		Total
Consumer 1-4 family mortgage loans (continued):
Closed end first mortgage loans:
Pass	23,328		11,854		9,009		5,478		6,356		9,292		65,317		4,356		69,673
Special Mention	0		186		0		207		149		0		542		0		542
Substandard	182		332		0		350		416		633		1,913		0		1,913

Not Rated	49,782		33,340		20,542		42,813		38,653		51,307		236,437		0		236,437
Total	73,292		45,712		29,551		48,848		45,574		61,232		304,209		4,356		308,565
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Open end and junior lien loans:
Pass	192		804		452		373		0		0		1,821		11,134		12,955

Substandard	0		1,775		0		114		65		21		1,975		583		2,558

Not Rated	42,180		17,282		8,341		6,624		6,682		1,662		82,771		200,755		283,526
Total	42,372		19,861		8,793		7,111		6,747		1,683		86,567		212,472		299,039
Open end and junior lien loans:
Current period gross write offs	0		0		38		0		0		8		46		81		127
Residential construction loans:




Not Rated	3,506		1,668		1,634		535		1,503		2,233		11,079		0		11,079
Total	3,506		1,668		1,634		535		1,503		2,233		11,079		0		11,079
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	0		333		0		913		70		1		1,317		42,885		44,202

Substandard	13		197		18		236		131		54		649		0		649

Not Rated	16,681		13,354		11,389		9,501		4,712		5,600		61,237		12,880		74,117
Total	16,694		13,884		11,407		10,650		4,913		5,655		63,203		55,765		118,968
Other consumer loans:
Current period gross write offs	13		103		76		102		51		0		345		305		650

Total Loans	$	902,462	$	726,027	$	350,985	$	525,646	$	464,154	$	586,487	$	3,555,761	$	2,124,243	$	5,680,004

Total period gross write offs	$	663	$	2,078	$	114	$	102	$	76	$	2,263	$	5,296	$	432	$	5,728

The following table summarizes the risk category of loans by loan segment and year of origination as of December 31, 2025:


(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Commercial and industrial loans:
Working capital lines of credit loans:
Pass	$	5,863	$	1,405	$	19	$	63	$	1,066	$	334	$	8,750	$	633,270	$	642,020
Special Mention	0		0		0		0		0		0		0		38,014		38,014
Substandard	300		0		2,057		924		211		230		3,722		27,759		31,481


Total	6,163		1,405		2,076		987		1,277		564		12,472		699,043		711,515
Working capital lines of credit loans:
Current period gross write offs	0		0		0		28,607		0		12		28,619		45		28,664
Non-working capital loans:
Pass	210,230		109,036		101,984		114,735		32,420		20,755		589,160		204,275		793,435
Special Mention	5,819		2,671		154		8,359		7,024		5,060		29,087		7,493		36,580
Substandard	314		327		1,998		1,543		105		3,913		8,200		391		8,591
Doubtful	0		0		0		0		0		74		74		0		74
Not Rated	939		322		767		558		107		173		2,866		0		2,866
Total	217,302		112,356		104,903		125,195		39,656		29,975		629,387		212,159		841,546
Non-working capital loans:
Current period gross write offs	1		2		0		0		0		0		3		201		204
Commercial real estate and multi-family residential loans:
Construction and land development loans:
Pass	20,946		25,430		11,990		20,692		720		0		79,778		414,386		494,164
Special Mention	1,242		0		0		0		0		0		1,242		0		1,242



Total	22,188		25,430		11,990		20,692		720		0		81,020		414,386		495,406
Construction and land development loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Owner occupied loans:
Pass	151,944		106,040		89,724		118,976		128,712		143,199		738,595		31,378		769,973
Special Mention	3,083		163		1,810		14,683		0		13,069		32,808		550		33,358
Substandard	0		306		284		0		1,520		1,442		3,552		0		3,552


Total	155,027		106,509		91,818		133,659		130,232		157,710		774,955		31,928		806,883
Owner occupied loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Nonowner occupied loans:
Pass	184,183		114,323		108,411		128,867		93,880		154,390		784,054		125,655		909,709


(dollars in thousands)	2025	2024	2023	2022	2021	Prior	Term Total	Revolving	Total
Nonowner occupied loans (continued):
Special Mention	0	0	11,321	59	0	0	11,380	0	11,380
Substandard	0	0	0	0	0	0	0	1,957	1,957


Total	184,183	114,323	119,732	128,926	93,880	154,390	795,434	127,612	923,046
Nonowner occupied loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Multifamily loans:
Pass	191,399	21,552	63,810	21,472	8,485	32,995	339,713	97,877	437,590
Special Mention	0	0	0	291	0	0	291	0	291



Total	191,399	21,552	63,810	21,763	8,485	32,995	340,004	97,877	437,881
Multifamily loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Agri-business and agricultural loans:
Loans secured by farmland:
Pass	28,600	13,595	15,258	31,324	19,915	30,669	139,361	13,202	152,563
Special Mention	1,987	118	193	0	25	148	2,471	0	2,471
Substandard	0	0	0	0	0	49	49	0	49


Total	30,587	13,713	15,451	31,324	19,940	30,866	141,881	13,202	155,083
Loans secured by farmland:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Loans for agricultural production:
Pass	5,560	13,158	21,355	18,848	21,215	12,502	92,638	151,443	244,081
Special Mention	0	0	654	258	0	1	913	6,891	7,804



Total	5,560	13,158	22,009	19,106	21,215	12,503	93,551	158,334	251,885
Loans for agricultural production:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Other commercial loans:
Pass	11,178	1,199	13,637	24,506	2,504	11,665	64,689	30,722	95,411
Special Mention	0	0	0	0	0	1,754	1,754	0	1,754



Total	11,178	1,199	13,637	24,506	2,504	13,419	66,443	30,722	97,165
Other commercial loans:
Current period gross write offs	0	0	0	0	0	0	0	0	0
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans:
Pass	14,058	9,978	6,465	6,793	10,248	5,525	53,067	2,427	55,494


(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Closed end first mortgage loans (continued):
Special Mention	189		119		215		156		61		0		740		0		740
Substandard	55		305		232		436		0		755		1,783		0		1,783

Not Rated	36,511		23,578		50,011		42,657		24,998		31,020		208,775		0		208,775
Total	50,813		33,980		56,923		50,042		35,307		37,300		264,365		2,427		266,792
Closed end first mortgage loans:
Current period gross write offs	0		0		0		0		0		24		24		0		24
Open end and junior lien loans:
Pass	665		487		684		0		190		4		2,030		8,477		10,507
Special Mention	286		0		0		0		0		0		286		0		286
Substandard	1,728		38		99		0		3		0		1,868		317		2,185

Not Rated	28,327		13,016		9,566		10,347		1,849		1,138		64,243		176,160		240,403
Total	31,006		13,541		10,349		10,347		2,042		1,142		68,427		184,954		253,381
Open end and junior lien loans:
Current period gross write offs	0		0		0		29		2		22		53		149		202
Residential construction loans:




Not Rated	6,684		6,852		575		1,680		1,189		1,798		18,778		0		18,778
Total	6,684		6,852		575		1,680		1,189		1,798		18,778		0		18,778
Residential construction loans:
Current period gross write offs	0		0		0		0		0		0		0		0		0
Other consumer loans:
Pass	384		0		939		120		22		0		1,465		37,683		39,148

Substandard	0		35		273		91		6		11		416		0		416

Not Rated	19,055		15,982		13,837		7,631		4,301		3,349		64,155		12,269		76,424
Total	19,439		16,017		15,049		7,842		4,329		3,360		66,036		49,952		115,988
Other consumer loans:
Current period gross write offs	4		187		306		161		58		0		716		604		1,320

Total loans	$	931,529	$	480,035	$	528,322	$	576,069	$	360,776	$	476,022	$	3,352,753	$	2,022,596	$	5,375,349

Total current period gross write offs	$	5	$	189	$	306	$	28,797	$	60	$	58	$	29,415	$	999	$	30,414

Schedule of Aging of the Amortized Cost Basis in Past Due Loans

The following table presents the aging of the amortized cost basis in past due loans as of September 30, 2026 by class of loans and loans past due 90 days or more and still accruing by class of loan:


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	808,245	$	0	$	0	$	808,245	$	3,962	$	531	$	812,207
Non-working capital loans	887,233		0		0		887,233		5,225		86		892,458
Commercial real estate and multi-family residential loans:
Construction and land development loans	407,494		0		0		407,494		0		0		407,494
Owner occupied loans	769,843		0		0		769,843		1,833		395		771,676
Nonowner occupied loans	989,897		0		0		989,897		1,958		0		991,855
Multifamily loans	597,922		0		0		597,922		0		0		597,922
Agri-business and agricultural loans:
Loans secured by farmland	189,657		0		0		189,657		42		0		189,699
Loans for agricultural production	158,138		464		0		158,602		0		0		158,602
Other commercial loans	120,440		0		0		120,440		0		0		120,440
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	306,479		345		6		306,830		1,735		770		308,565
Open end and junior lien loans	295,799		682		0		296,481		2,558		434		299,039
Residential construction loans	11,079		0		0		11,079		0		0		11,079
Other consumer loans	117,663		656		0		118,319		649		61		118,968
Total	$	5,659,889	$	2,147	$	6	$	5,662,042	$	17,962	$	2,277	$	5,680,004

The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2025 by class of loans and loans past due 90 days or more and still accruing by class of loan:


(dollars in thousands)	Loans Not Past Due		30-89 Days Past Due		Greater than 89 Days Past Due and Accruing		Total Accruing		Total Nonaccrual		Nonaccrual With No Allowance For Credit Loss		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	706,317	$	0	$	0	$	706,317	$	5,198	$	1,434	$	711,515
Non-working capital loans	834,134		0		0		834,134		7,412		86		841,546
Commercial real estate and multi-family residential loans:
Construction and land development loans	495,406		0		0		495,406		0		0		495,406
Owner occupied loans	804,986		0		0		804,986		1,897		170		806,883
Nonowner occupied loans	921,089		0		0		921,089		1,957		0		923,046
Multifamily loans	437,881		0		0		437,881		0		0		437,881
Agri-business and agricultural loans:
Loans secured by farmland	155,035		0		0		155,035		48		0		155,083
Loans for agricultural production	251,885		0		0		251,885		0		0		251,885
Other commercial loans	97,165		0		0		97,165		0		0		97,165
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans	263,385		1,617		7		265,009		1,783		690		266,792
Open end and junior lien loans	251,009		186		0		251,195		2,186		405		253,381
Residential construction loans	18,778		0		0		18,778		0		0		18,778
Other consumer loans	115,046		526		0		115,572		416		6		115,988
Total	$	5,352,116	$	2,329	$	7	$	5,354,452	$	20,897	$	2,791	$	5,375,349

Schedule of Amortized Cost Basis of Collateral Dependent Loans

The following tables present the amortized cost basis of collateral dependent loans by class of loan as of:


	September 30, 2026
(dollars in thousands)	Real Estate		General Business Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	2,268	$	37,022	$	536	$	39,826
Non-working capital loans	324		13,037		36		13,397
Commercial real estate and multi-family residential loans:
Owner occupied loans	936		1,694		0		2,630
Nonowner occupied loans	1,958		0		0		1,958
Agri-business and agricultural loans:
Loans secured by farmland	0		42		0		42
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,735		0		0		1,735
Open end and junior lien loans	2,558		0		0		2,558

Other consumer loans	0		0		649		649
Total	$	9,779	$	51,795	$	1,221	$	62,795


	December 31, 2025
(dollars in thousands)	Real Estate		General Business Assets		Other		Total
Commercial and industrial loans:
Working capital lines of credit loans	$	2,388	$	23,827	$	673	$	26,888
Non-working capital loans	464		3,715		49		4,228
Commercial real estate and multi-family residential loans:
Owner occupied loans	476		1,726		0		2,202
Nonowner occupied loans	1,958		0		0		1,958
Agri-business and agricultural loans:
Loans secured by farmland	0		49		0		49
Consumer 1-4 family mortgage loans:
Closed end first mortgage loans	1,725		0		0		1,725
Open end and junior lien loans	2,186		0		0		2,186
Other consumer loans	0		0		416		416
Total	$	9,197	$	29,317	$	1,138	$	39,652

Schedule of Amortized Cost Basis at the End of the Reporting Period of Loans and Financial Effect of the Loan Modifications

The following table presents the amortized cost basis at the end of the reporting period of loans that were experiencing financial difficulty and received a modification of terms during the three and nine months ended September 30, 2025, by class and 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 receivables at the end of the reporting period is also presented below:


(dollars in thousands)	Combination Principal Forgiveness and Interest Rate Reduction		Total Modifications		Total Class of Financing Receivable
Three and Nine Months Ended September 30, 2025




















Consumer 1-4 family mortgage loans:

Open end and junior lien loans	$	1,994	1,994		0.82	%

Total consumer 1-4 family mortgage loans	1,994		1,994		0.37	%


Total consumer loans	1,994		1,994		0.31	%
Total loan modifications made to borrowers experiencing financial difficulty	$	1,994	$	1,994	0.04	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty:


(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction
Three and Nine Months Ended September 30, 2025
Commercial and industrial loans:
Working capital lines of credit loans (1)	$	28,607	7.00	%



Total commercial and industrial loans	28,607		7.00	%














Total commercial loans	28,607		7.00	%









Total financial effect of loan modifications made to borrowers experiencing financial difficulty	$	28,607	7.00	%

(1) Principal forgiveness of $28.6 million represents one $30.6 million working capital line of credit loan, of which $28.6 million was charged off. The remaining $2.0 million was financed into an open end and junior lien loan with a personal guarantor of the forgiven loan. The modified note is collateralized by several of the guarantor's commercial and residential real estate properties.