LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Categories of Loans

The following table lists categories of loans at December 31, 2023 and 2022.

	2023			2022
Commercial real estate	$	1,759,855		$	1,721,268
Commercial and industrial		598,327			594,863
Residential real estate		556,328			570,550
Agricultural real estate		196,114			199,189
Agricultural		118,587			120,003
Consumer		103,690			105,675
Total loans		3,332,901			3,311,548
Allowance for credit losses		(43,520	)		(45,847	)
Net loans	$	3,289,381		$	3,265,701

Schedule of Allowance for Loan Losses by Portfolio Segment Allowance

The following tables present the activity in the allowance for credit losses by class for the years ended December 31, 2023, 2022, and 2021.

December 31, 2023	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Agricultural Real Estate			Agricultural			Consumer			Total
Allowance for credit 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

December 31, 2022	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Agricultural Real Estate			Agricultural			Consumer			Total
Allowance for credit losses:
Beginning balance	$	22,478		$	12,248		$	5,560		$	2,235		$	3,756		$	2,088		$	48,365
Provision (reversal) for credit losses		(4,554	)		3,293			3,104			(1,389	)		(1,264	)		935			125
Loans charged-off		(1,297	)		(857	)		(99	)		(35	)		(46	)		(1,009	)		(3,343	)
Recoveries		104			267			43			8			11			267			700
Total ending allowance balance	$	16,731		$	14,951		$	8,608		$	819		$	2,457		$	2,281		$	45,847

December 31, 2021	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Agricultural Real Estate			Agricultural			Consumer			Total
Allowance for loan losses:
Beginning balance, prior to adoption of ASC 326	$	9,012		$	12,456		$	4,559		$	904		$	758		$	6,020		$	33,709
Cumulative effect adjustment of adopting    ASC 326		5,612			4,167			8,870			167			(207	)		(2,877	)		15,732
Impact of adopting ASC 326 - PCD loans		4,571			(218	)		220			960			4,905			—			10,438
PCD mark on acquired loans		3,719			60			244			420			1,113			55			5,611
Provision (reversal) for credit losses		(565	)		3,653			(8,385	)		257			(2,834	)		(606	)		(8,480	)
Loans charged-off		(169	)		(9,839	)		(39	)		(506	)		(1	)		(823	)		(11,377	)
Recoveries		298			1,969			91			33			22			319			2,732
Total ending allowance balance	$	22,478		$	12,248		$	5,560		$	2,235		$	3,756		$	2,088		$	48,365

Schedule of Loans Evaluated for Impairment

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, 2023, and 2022.

December 31, 2023	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Agricultural Real Estate		Agricultural		Consumer		Total
Allowance for credit losses:
Individually evaluated for credit losses	$	582	$	1,644	$	1,113	$	674	$	598	$	154	$	4,765
Collectively evaluated for credit losses		12,894		16,310		6,671		1,044		397		1,439		38,755
Total	$	13,476	$	17,954	$	7,784	$	1,718	$	995	$	1,593	$	43,520
Loan Balance:
Individually evaluated for credit losses	$	6,031	$	5,498	$	7,495	$	4,672	$	3,598	$	669	$	27,963
Collectively evaluated for credit losses		1,753,824		592,829		548,833		191,442		114,989		103,021		3,304,938
Total	$	1,759,855	$	598,327	$	556,328	$	196,114	$	118,587	$	103,690	$	3,332,901

December 31, 2022	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Agricultural Real Estate		Agricultural		Consumer		Total
Allowance for credit losses:
Individually evaluated for credit losses	$	285	$	1,433	$	795	$	221	$	2,125	$	87	$	4,946
Collectively evaluated for credit losses		16,446		13,518		7,813		598		332		2,194		40,901
Total	$	16,731	$	14,951	$	8,608	$	819	$	2,457	$	2,281	$	45,847
Loan Balance:
Individually evaluated for credit losses	$	2,867	$	6,653	$	3,344	$	2,606	$	4,576	$	379	$	20,425
Collectively evaluated for credit losses		1,718,401		588,210		567,206		196,583		115,427		105,296		3,291,123
Total	$	1,721,268	$	594,863	$	570,550	$	199,189	$	120,003	$	105,675	$	3,311,548

Non-Accrual Loans, Segregated by Class of Loans

The following table presents information related to nonaccrual loans at December 31, 2023.

December 31, 2023	Unpaid Principal Balance		Recorded Investment		Allowance for Credit Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate	$	3,948	$	3,376	$	—	$	2,117	$	53
Commercial and industrial		2,925		—		—		251		1
Residential real estate		21		—		—		5		1
Agricultural real estate		1,342		948		—		939		—
Agricultural		2,303		—		—		—		3
Consumer		23		—		—		—		1
Subtotal		10,562		4,324		—		3,312		59
With an allowance recorded:
Commercial real estate		2,297		2,071		455		1,214		37
Commercial and industrial		8,452		5,041		1,335		5,059		249
Residential real estate		7,605		7,251		1,086		3,912		156
Agricultural real estate		4,753		3,266		660		1,950		1
Agricultural		2,946		2,470		481		2,791		1
Consumer		689		603		150		477		17
Subtotal		26,742		20,702		4,167		15,403		461
Total	$	37,304	$	25,026	$	4,167	$	18,715	$	520

The above table presents interest income for the twelve months ended December 31, 2023. 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 nonaccrual loans at December 31, 2022.

December 31, 2022	Unpaid Principal Balance		Recorded Investment		Allowance for Credit Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate	$	2,443	$	1,866	$	—	$	1,595	$	—
Commercial and industrial		21		—		—		1,184		—
Residential real estate		54		25		—		312		6
Agricultural real estate		1,518		583		—		1,360		169
Agricultural		—		—		—		2		1
Consumer		6		—		—		12		—
Subtotal		4,042		2,474		—		4,465		176
With an allowance recorded:
Commercial real estate		1,011		823		206		3,126		10
Commercial and industrial		10,758		5,838		1,091		4,214		170
Residential real estate		3,488		3,181		786		3,483		27
Agricultural real estate		1,956		1,469		216		2,095		7
Agricultural		6,272		3,468		1,860		4,244		2
Consumer		412		348		85		302		8
Subtotal		23,897		15,127		4,244		17,464		224
Total	$	27,939	$	17,601	$	4,244	$	21,929	$	400

Schedule of Aging of Recorded Investment in Past Due Loans by Segment and Class of Loans

The following tables present the aging of the recorded investment in past due loans as of December 31, 2023 and 2022, by portfolio and class of loans.

December 31, 2023	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days Past Due Still On Accrual		Nonaccrual		Loans Not Past Due		Total
Commercial real estate	$	2,397	$	198	$	189	$	5,447	$	1,751,624	$	1,759,855
Commercial and industrial		1,853		2,713		71		5,041		588,649		598,327
Residential real estate		1,444		676		—		7,251		546,957		556,328
Agricultural real estate		949		—		—		4,214		190,951		196,114
Agricultural		559		65		19		2,470		115,474		118,587
Consumer		443		118		—		603		102,526		103,690
Total	$	7,645	$	3,770	$	279	$	25,026	$	3,296,181	$	3,332,901

December 31, 2022	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days Past Due Still On Accrual		Nonaccrual		Loans Not Past Due		Total
Commercial real estate	$	1,526	$	69	$	—	$	2,689	$	1,716,984	$	1,721,268
Commercial and industrial		232		195		—		5,838		588,598		594,863
Residential real estate		1,133		1,993		—		3,206		564,218		570,550
Agricultural real estate		569		—		—		2,052		196,568		199,189
Agricultural		212		—		—		3,468		116,323		120,003
Consumer		246		55		—		348		105,026		105,675
Total	$	3,918	$	2,312	$	—	$	17,601	$	3,287,717	$	3,311,548

Off Balance Sheet Credit Exposure

The following table lists allowance for credit losses on off-balance sheet credit exposures as of December 31, 2023 and 2022.

	December 31, 2023		December 31, 2022
Commercial real estate	$	285	$	336
Commercial and industrial		1,053		700
Residential real estate		35		45
Agricultural real estate		2		—
Agricultural		3		3
Consumer		247		269
Total	$	1,625	$	1,353

Summary of Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by type and year of origination, at December 31, 2023, is as follows.

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
Commercial real estate
Risk rating
Pass	$	212,229	$	379,233	$	253,837	$	179,935	$	75,472	$	186,073	$	461,346	$	753	$	1,748,878
Special Mention		257		—		119		—		—		399		—		—		775
Substandard		84		2,501		3,481		256		1,463		2,336		81		—		10,202
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial real estate	$	212,570	$	381,734	$	257,437	$	180,191	$	76,935	$	188,808	$	461,427	$	753	$	1,759,855
Commercial and industrial
Risk rating
Pass	$	128,598	$	110,817	$	54,416	$	49,557	$	29,931	$	7,293	$	204,237	$	1,780	$	586,629
Special Mention		—		—		15		—		—		992		—		—		1,007
Substandard		1,317		468		230		2,922		237		2,171		3,346		—		10,691
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	129,915	$	111,285	$	54,661	$	52,479	$	30,168	$	10,456	$	207,583	$	1,780	$	598,327
Residential real estate
Risk rating
Pass	$	35,040	$	29,766	$	277,611	$	5,183	$	12,506	$	130,144	$	57,699	$	1,065	$	549,014
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		213		187		22		156		1,960		4,710		66		7,314
Doubtful		—		—		—		—		—		—		—		—		—
Total residential real estate	$	35,040	$	29,979	$	277,798	$	5,205	$	12,662	$	132,104	$	62,409	$	1,131	$	556,328
Agricultural real estate
Risk rating
Pass	$	22,368	$	26,762	$	17,987	$	18,551	$	10,653	$	20,039	$	74,010	$	289	$	190,659
Special Mention		903		158		—		—		—		164		605		—		1,830
Substandard		40		—		24		—		101		3,423		37		—		3,625
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural real estate	$	23,311	$	26,920	$	18,011	$	18,551	$	10,754	$	23,626	$	74,652	$	289	$	196,114
Agricultural
Risk rating
Pass	$	12,424	$	7,363	$	4,815	$	7,148	$	1,385	$	3,809	$	78,285	$	55	$	115,284
Special Mention		—		—		—		—		—		33		9		—		42
Substandard		39		10		464		629		1,861		52		206		—		3,261
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural	$	12,463	$	7,373	$	5,279	$	7,777	$	3,246	$	3,894	$	78,500	$	55	$	118,587
Consumer
Risk rating
Pass	$	47,019	$	24,620	$	10,384	$	4,841	$	1,281	$	2,885	$	12,035	$	1	$	103,066
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		50		241		163		98		49		23		—		—		624
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer	$	47,069	$	24,861	$	10,547	$	4,939	$	1,330	$	2,908	$	12,035	$	1	$	103,690
Total loans
Risk rating
Pass	$	457,678	$	578,561	$	619,050	$	265,215	$	131,228	$	350,243	$	887,612	$	3,943	$	3,293,530
Special Mention		1,160		158		134		—		—		1,588		614		—		3,654
Substandard		1,530		3,433		4,549		3,927		3,867		9,965		8,380		66		35,717
Doubtful		—		—		—		—		—		—		—		—		—
Total loans	$	460,368	$	582,152	$	623,733	$	269,142	$	135,095	$	361,796	$	896,606	$	4,009	$	3,332,901

The risk category of loans by type and year of origination, at December 31, 2022, is as follows.

December 31, 2022	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
Commercial real estate
Risk rating
Pass	$	432,196	$	252,616	$	188,897	$	92,290	$	114,415	$	171,498	$	462,140	$	741	$	1,714,793
Special Mention		—		122		—		—		—		401		—		—		523
Substandard		—		3,049		244		144		—		2,515		—		—		5,952
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial real estate	$	432,196	$	255,787	$	189,141	$	92,434	$	114,415	$	174,414	$	462,140	$	741	$	1,721,268
Commercial and industrial
Risk rating
Pass	$	172,912	$	79,782	$	65,915	$	39,487	$	6,712	$	5,089	$	189,998	$	6,654	$	566,549
Special Mention		—		—		—		—		674		3,851		—		—		4,525
Substandard		283		4,316		2,167		10,127		1,460		783		4,653		—		23,789
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	173,195	$	84,098	$	68,082	$	49,614	$	8,846	$	9,723	$	194,651	$	6,654	$	594,863
Residential real estate
Risk rating
Pass	$	34,705	$	299,840	$	5,939	$	13,073	$	47,986	$	102,871	$	62,494	$	271	$	567,179
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		58		86		48		209		239		2,633		98		—		3,371
Doubtful		—		—		—		—		—		—		—		—		—
Total residential real estate	$	34,763	$	299,926	$	5,987	$	13,282	$	48,225	$	105,504	$	62,592	$	271	$	570,550
Agricultural real estate
Risk rating
Pass	$	33,586	$	20,712	$	26,408	$	12,754	$	5,608	$	18,882	$	68,510	$	300	$	186,760
Special Mention		874		—		2,493		—		—		604		5,983		—		9,954
Substandard		—		203		—		115		485		1,635		37		—		2,475
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural real estate	$	34,460	$	20,915	$	28,901	$	12,869	$	6,093	$	21,121	$	74,530	$	300	$	199,189
Agricultural
Risk rating
Pass	$	23,917	$	7,778	$	9,437	$	2,642	$	2,250	$	2,134	$	64,647	$	75	$	112,880
Special Mention		—		—		—		92		22		375		556		—		1,045
Substandard		—		1,003		1,838		2,044		386		213		594		—		6,078
Doubtful		—		—		—		—		—		—		—		—		—
Total agricultural	$	23,917	$	8,781	$	11,275	$	4,778	$	2,658	$	2,722	$	65,797	$	75	$	120,003
Consumer
Risk rating
Pass	$	56,497	$	17,460	$	8,415	$	3,235	$	1,370	$	3,396	$	14,955	$	—	$	105,328
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		17		148		54		81		13		34		—		—		347
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer	$	56,514	$	17,608	$	8,469	$	3,316	$	1,383	$	3,430	$	14,955	$	—	$	105,675
Total loans
Risk rating
Pass	$	753,813	$	678,188	$	305,011	$	163,481	$	178,341	$	303,870	$	862,744	$	8,041	$	3,253,489
Special Mention		874		122		2,493		92		696		5,231		6,539		—		16,047
Substandard		358		8,805		4,351		12,720		2,583		7,813		5,382		—		42,012
Doubtful		—		—		—		—		—		—		—		—		—
Total loans	$	755,045	$	687,115	$	311,855	$	176,293	$	181,620	$	316,914	$	874,665	$	8,041	$	3,311,548

Schedule of Charge-off and Recovery Activity by Loan Type and Year of Origination

The following table discloses the charge-off and recovery activity by loan type and year of origination at December 31, 2023.

December 31, 2023	2023			2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost			Revolving Loans Converted to Term		Total
Commercial real estate
Gross charge-offs	$	—		$	—		$	—		$	—		$	(11	)	$	(9	)	$	—		$	—	$	(20	)
Gross recoveries		—			63			—			—			—			32			—			—		95
Net charge-offs	$	—		$	63		$	—		$	—		$	(11	)	$	23		$	—		$	—	$	75
Commercial and industrial
Gross charge-offs	$	(10	)	$	(226	)	$	(22	)	$	(18	)	$	(2	)	$	(25	)	$	(3,488	)	$	—	$	(3,791	)
Gross recoveries		—			32			—			15			—			10			34			—		91
Net charge-offs	$	(10	)	$	(194	)	$	(22	)	$	(3	)	$	(2	)	$	(15	)	$	(3,454	)	$	—	$	(3,700	)
Residential real estate
Gross charge-offs	$	—		$	—		$	—		$	—		$	(14	)	$	(62	)	$	(4	)	$	—	$	(80	)
Gross recoveries		—			—			—			—			—			62			—			—		62
Net charge-offs	$	—		$	—		$	—		$	—		$	(14	)	$	—		$	(4	)	$	—	$	(18	)
Agricultural real estate
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	(4	)	$	(50	)	$	—	$	(54	)
Gross recoveries		—			—			—			—			—			8			—			—		8
Net charge-offs	$	—		$	—		$	—		$	—		$	—		$	4		$	(50	)	$	—	$	(46	)
Agricultural
Gross charge-offs	$	—		$	—		$	(107	)	$	—		$	—		$	(1	)	$	—		$	—	$	(108	)
Gross recoveries		—			—			—			—			—			155			—			—		155
Net charge-offs	$	—		$	—		$	(107	)	$	—		$	—		$	154		$	—		$	—	$	47
Consumer
Gross charge-offs	$	(240	)	$	(168	)	$	(120	)	$	(58	)	$	(51	)	$	(186	)	$	(78	)	$	—	$	(901	)
Gross recoveries		20			53			58			22			24			152			14			—		343
Net charge-offs	$	(220	)	$	(115	)	$	(62	)	$	(36	)	$	(27	)	$	(34	)	$	(64	)	$	—	$	(558	)
Total loans
Gross charge-offs	$	(250	)	$	(394	)	$	(249	)	$	(76	)	$	(78	)	$	(287	)	$	(3,620	)	$	—	$	(4,954	)
Gross recoveries		20			148			58			37			24			419			48			—		754
Net charge-offs	$	(230	)	$	(246	)	$	(191	)	$	(39	)	$	(54	)	$	132		$	(3,572	)	$	—	$	(4,200	)

Summary of Amortized Cost Basis of Loans Modified

The following table presents the amortized cost basis of loans at December 31, 2023, that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2023, 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, 2023	Payment Delay		Term Extension		Combination Rate Change and Term Extension		Combination Payment Delay and Term Extension		Total Modifications		Total Class of Financing Receivable
Commercial real estate	$	—	$	—	$	—	$	3,547	$	3,547		0.20	%
Commercial and industrial		—		1,433		—		11,492		12,925		2.16	%
Residential real estate		—		—		—		12		12		0.00	%
Agricultural real estate		—		858		—		1,098		1,956		1.00	%
Agricultural		122		—		—		421		543		0.46	%
Consumer		—		—		21		—		21		0.02	%
Total	$	122	$	2,291	$	21	$	16,570	$	19,004		0.57	%

Summary of Performance of Loans Modified

The following table presents the performance of such loans that have been modified during the twelve months ended December 31, 2023.

December 31, 2023	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 days Past Due		Total Past Due
Commercial real estate	$	258	$	—	$	—	$	258
Commercial and industrial		—		211		—		211
Residential real estate		—		—		11		11
Agricultural real estate		—		—		—		—
Agricultural		122		—		—		122
Consumer		21		—		—		21
Total	$	401	$	211	$	11	$	623

Schedule of Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the twelve months ended December 31, 2023.

December 31, 2023	Principal Forgiveness		Weighted Average Interest Rate Reduction			Weighted Average Term Extension in Years
Commercial real estate	$	—		—	%		0.36
Commercial and industrial		2,254		—	%		1.05
Residential real estate		—		—	%		3.42
Agricultural real estate		—		—	%		0.85
Agricultural		—		—	%		0.58
Consumer		—		—	%		2.16
Total loans	$	2,254		—	%		—