
	March 31, 2024		December 31, 2023
Commercial:
Commercial and Industrial Loans	$	572,666	$	589,541
Commercial Real Estate Loans	2,148,808		2,121,835
Agricultural Loans	400,733		423,803
Leases	73,496		71,988
Retail:
Home Equity Loans	312,859		299,685
Consumer Loans	88,008		87,853
Credit Cards	21,113		20,351
Residential Mortgage Loans	361,236		362,844

Subtotal	3,978,919		3,977,900
Less: Unearned Income	(7,009)		(6,818)
Allowance for Credit Losses	(43,754)		(43,765)
Loans, net	$	3,928,156	$	3,927,317


March 31, 2024	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
Allowance for Credit Losses:
Beginning balance	$	7,921	$	25,923	$	3,837	$	346	$	759	$	1,834	$	383	$	2,762	$	43,765
Provision (Benefit) for credit loss expense	(556)		833		(187)		27		269		294		150		70		900
Loans charged-off	(102)		(308)		—		—		(368)		(134)		(149)		—		(1,061)
Recoveries collected	3		4		—		—		125		7		11		—		150
Total ending allowance balance	$	7,266	$	26,452	$	3,650	$	373	$	785	$	2,001	$	395	$	2,832	$	43,754


March 31, 2023	Commercial and Industrial Loans		Commercial Real Estate Loans		Agricultural Loans		Leases		Consumer Loans		Home Equity Loans		Credit Cards		Residential Mortgage Loans		Total
Allowance for Credit Losses:
Beginning balance	$	13,749	$	21,598	$	4,188	$	209	$	595	$	1,344	$	257	$	2,228	$	44,168
Provision (Benefit) for credit loss expense	501		402		(301)		18		226		54		125		75		1,100
Loans charged-off	(733)		—		—		—		(345)		(14)		(120)		(26)		(1,238)
Recoveries collected	55		62		—		—		133		31		1		3		285
Total ending allowance balance	$	13,572	$	22,062	$	3,887	$	227	$	609	$	1,415	$	263	$	2,280	$	44,315

The Company utilizes the static pool methodology in determining expected future credit losses. Static pool analysis means segmenting and tracking loans over a period of time based on similar risk characteristics such as loan structure, collateral type, industry of borrower and concentrations, contractual terms and credit risk indicators. Static pool calculates a loss rate on a closed pool of loans that existed on a specified start date based upon the remaining life of each segment.

Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration industry and collateral concentrations, acquired loan portfolio characteristics and other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves by anchoring to specific data points when possible.

The Company estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in underwriting standards, portfolio mix, delinquency level, changes in environmental conditions, unemployment rates, risk classifications and collateral values. The allowance for credit losses is measured on a collective (pooled) basis when similar risk characteristics exist. Based on the potential increased losses related to the advancing stress on the economy as a result of inflationary pressures, rising interest rates and financial market volatility, the Company has considered this loss experience may align with loss experience from the recessionary period from 2008-2011 and qualitative adjustments have been made accordingly.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date adjusted for selling costs.

For the three months ended March 31, 2024, the allowance for credit losses remained stable compared to December 31, 2023. The Company saw improvement in individually analyzed loans and added reserve for loan portfolio growth. Key indicators utilized in forecasting for the allowance calculations include unemployment rates and gross domestic product as well as commodity prices for the agricultural segment of the portfolio. There has been some improvement in these factors over previous periods; however, rising interest rates and the expanded inflationary impact on consumer discretionary spending were considered in the qualitative factors to determine the allowance for credit losses.

All classes of loans, including loans acquired with deteriorated credit quality, are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. For purchased loans, the determination is made at the time of acquisition as well as over the life of the loan. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed


March 31, 2024	Non-Accrual With No Allowance for Credit Loss (1)		Total Non-Accrual		Loans Past Due Over 89 Days Still Accruing

Commercial and Industrial Loans	$	2,427	$	4,450	$	—
Commercial Real Estate Loans	1,355		2,407		85
Agricultural Loans	630		837		—
Leases	—		—		—
Home Equity Loans	504		504		—
Consumer Loans	77		77		—
Credit Cards	50		50		—
Residential Mortgage Loans	1,431		1,573		—
Total	$	6,474	$	9,898	$	85


December 31, 2023	Non-Accrual With No Allowance for Credit Loss (1)		Total Non-Accrual		Loans Past Due Over 89 Days Still Accruing

Commercial and Industrial Loans	$	1,864	$	3,707	$	—
Commercial Real Estate Loans	942		1,889		55
Agricultural Loans	665		879		—
Leases	—		—		—
Home Equity Loans	1,033		1,033		—
Consumer Loans	111		111		—
Credit Cards	142		142		—
Residential Mortgage Loans	1,125		1,375		—
Total	$	5,882	$	9,136	$	55


March 31, 2024	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	4,269	$	207	$	—	$	1,818	$	6,294
Commercial Real Estate Loans	8,937		—		—		—		8,937
Agricultural Loans	3,086		1,025		—		—		4,111
Leases	—		—		—		—		—
Home Equity Loans	421		—		—		—		421
Consumer Loans	9		—		—		—		9
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	599		—		—		—		599
Total	$	17,321	$	1,232	$	—	$	1,818	$	20,371


December 31, 2023	Real Estate		Equipment		Accounts Receivable		Other		Total

Commercial and Industrial Loans	$	3,668	$	49	$	—	$	1,888	$	5,605
Commercial Real Estate Loans	8,553		—		—		—		8,553
Agricultural Loans	3,338		1,055		—		—		4,393
Leases	—		—		—		—		—
Home Equity Loans	420		—		—		—		420
Consumer Loans	9		—		—		—		9
Credit Cards	—		—		—		—		—
Residential Mortgage Loans	753		—		—		—		753
Total	$	16,741	$	1,104	$	—	$	1,888	$	19,733


March 31, 2024	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial and Industrial Loans	$	136	$	458	$	3,608	$	4,202	$	568,464	$	572,666
Commercial Real Estate Loans	734		849		1,432		3,015		2,145,793		2,148,808
Agricultural Loans	6		1,057		497		1,560		399,173		400,733
Leases	—		—		—		—		73,496		73,496
Home Equity Loans	1,376		292		504		2,172		310,687		312,859
Consumer Loans	732		36		77		845		87,163		88,008
Credit Cards	89		73		50		212		20,901		21,113
Residential Mortgage Loans	4,715		2,062		1,481		8,258		352,978		361,236
Total	$	7,788	$	4,827	$	7,649	$	20,264	$	3,958,655	$	3,978,919


December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial and Industrial Loans	$	832	$	257	$	3,299	$	4,388	$	585,153	$	589,541
Commercial Real Estate Loans	1,215		484		938		2,637		2,119,198		2,121,835
Agricultural Loans	5		248		497		750		423,053		423,803
Leases	—		—		—		—		71,988		71,988
Home Equity Loans	1,016		571		1,033		2,620		297,065		299,685
Consumer Loans	658		84		110		852		87,001		87,853
Credit Cards	165		87		142		394		19,957		20,351
Residential Mortgage Loans	7,362		1,647		1,215		10,224		352,620		362,844
Total	$	11,253	$	3,378	$	7,234	$	21,865	$	3,956,035	$	3,977,900

Effective January 1, 2023, the Company prospectively adopted ASU 2022-02, which eliminated the accounting for troubled debt restructurings while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties. As such, effective with the adoption of the new standard, the Company will not include, prospectively, financial difficulty modifications in its presentation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included troubled debt restructurings, has not been adjusted.

The Company’s loan modifications for borrowers experiencing financial difficulties will typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modifications during the three months ended, March 31, 2024, or the year ended, December 31, 2023, resulted in a permanent reduction of the recorded investment in the loan.

During the three months ended March 31, 2024 and 2023, the Company had no modified loans made to borrowers experiencing financial difficulty. There were no modified loans that had a payment default during the three months ended March 31, 2024 and 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. The Company considers a loan to be in payment default once it is 30 days contractually past due under the modified terms.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company classifies loans as to credit risk by individually analyzing loans. This analysis includes commercial and industrial loans, commercial real estate loans, and agricultural loans with an outstanding balance greater than $250. This analysis is typically performed on at least an annual basis. The Company uses the following definitions for risk ratings:

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.


	Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	23,640	$	103,041	$	123,191	$	81,060	$	25,763	$	66,102	$	130,677	$	553,474
Special Mention	176		46		477		115		1,208		2,482		3,526		8,030
Substandard	—		—		271		4,166		305		3,117		3,303		11,162
Doubtful	—		—		—		—		—		—		—		—
Total Commercial & Industrial Loans	$	23,816	$	103,087	$	123,939	$	85,341	$	27,276	$	71,701	$	137,506	$	572,666

Current Period Gross Charge-Offs	$	—	$	4	$	17	$	35	$	—	$	—	$	46	$	102

Commercial Real Estate:
Risk Rating
Pass	$	77,809	$	316,801	$	417,934	$	449,347	$	210,315	$	578,412	$	37,178	$	2,087,796
Special Mention	176		13,688		2,788		10,808		2,091		18,596		961		49,108
Substandard	—		464		1,270		5,378		537		4,255		—		11,904
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	77,985	$	330,953	$	421,992	$	465,533	$	212,943	$	601,263	$	38,139	$	2,148,808

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	308	$	—	$	308

Agricultural:
Risk Rating
Pass	$	12,909	$	43,953	$	53,296	$	38,147	$	40,568	$	119,627	$	67,641	$	376,141
Special Mention	183		1,491		83		856		4,805		10,982		1,271		19,671
Substandard	195		—		—		—		111		4,615		—		4,921
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	13,287	$	45,444	$	53,379	$	39,003	$	45,484	$	135,224	$	68,912	$	400,733

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Leases:
Risk Rating
Pass	$	7,886	$	34,090	$	11,224	$	9,498	$	5,086	$	5,712	$	—	$	73,496
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	7,886	$	34,090	$	11,224	$	9,498	$	5,086	$	5,712	$	—	$	73,496

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial:
Risk Rating
Pass	$	112,626	$	134,590	$	80,738	$	28,492	$	32,585	$	45,764	$	134,936	$	569,731
Special Mention	47		453		128		829		—		1,948		3,048		6,453
Substandard	—		294		5,689		780		1,696		1,471		3,427		13,357
Doubtful	—		—		—		—		—		—		—		—
Total Commercial & Industrial Loans	$	112,673	$	135,337	$	86,555	$	30,101	$	34,281	$	49,183	$	141,411	$	589,541

Current Period Gross Charge-Offs	$	—	$	911	$	32	$	493	$	7	$	88	$	261	$	1,792

Commercial Real Estate:
Risk Rating
Pass	$	300,569	$	416,874	$	470,917	$	225,668	$	147,431	$	458,821	$	41,102	$	2,061,382
Special Mention	13,906		2,401		11,155		1,651		259		19,532		638		49,542
Substandard	—		617		5,510		1,142		729		2,737		176		10,911
Doubtful	—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	314,475	$	419,892	$	487,582	$	228,461	$	148,419	$	481,090	$	41,916	$	2,121,835

Current Period Gross Charge-Offs	$	—	$	—	$	56	$	—	$	—	$	—	$	—	$	56

Agricultural:
Risk Rating
Pass	$	44,948	$	56,291	$	39,852	$	42,279	$	23,217	$	100,391	$	89,455	$	396,433
Special Mention	1,495		164		903		5,047		2,338		9,894		2,259		22,100
Substandard	—		—		199		188		200		4,683		—		5,270
Doubtful	—		—		—		—		—		—		—		—
Total Agricultural Loans	$	46,443	$	56,455	$	40,954	$	47,514	$	25,755	$	114,968	$	91,714	$	423,803

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	2	$	—	$	—	$	25	$	27

Leases:
Risk Rating
Pass	$	36,848	$	12,281	$	10,634	$	6,086	$	4,788	$	1,351	$	—	$	71,988
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total Leases	$	36,848	$	12,281	$	10,634	$	6,086	$	4,788	$	1,351	$	—	$	71,988

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the amortized cost in residential, home equity and consumer loans based on payment activity.


	Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	11,092	$	43,898	$	18,463	$	7,984	$	2,400	$	2,377	$	1,717	$	87,931
Nonperforming	—		24		29		21		—		3		—		77
Total Consumer Loans	$	11,092	$	43,922	$	18,492	$	8,005	$	2,400	$	2,380	$	1,717	$	88,008

Current Period Gross Charge-Offs	$	248	$	75	$	27	$	15	$	—	$	—	$	3	$	368

Home Equity:
Payment performance
Performing	$	—	$	238	$	1,691	$	303	$	236	$	3,255	$	306,632	$	312,355
Nonperforming	—		—		212		—		—		281		11		504
Total Home Equity Loans	$	—	$	238	$	1,903	$	303	$	236	$	3,536	$	306,643	$	312,859

Current Period Gross Charge-Offs	$	—	$	—	$	35	$	99	$	—	$	—	$	—	$	134

Residential Mortgage:
Payment performance
Performing	$	12,231	$	54,893	$	64,121	$	82,933	$	40,025	$	105,460	$	—	$	359,663
Nonperforming	—		150		—		44		198		1,181		—		1,573
Total Residential Mortgage Loans	$	12,231	$	55,043	$	64,121	$	82,977	$	40,223	$	106,641	$	—	$	361,236

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer:
Payment performance
Performing	$	49,208	$	21,459	$	9,708	$	2,756	$	917	$	1,911	$	1,783	$	87,742
Nonperforming	74		21		12		—		—		1		3		111
Total Consumer Loans	$	49,282	$	21,480	$	9,720	$	2,756	$	917	$	1,912	$	1,786	$	87,853

Current Period Gross Charge-Offs	$	1,162	$	42	$	23	$	71	$	3	$	1	$	7	$	1,309

Home Equity:
Payment performance
Performing	$	—	$	170	$	236	$	90	$	165	$	1,207	$	296,784	$	298,652
Nonperforming	—		247		252		60		—		102		372		1,033
Total Home Equity Loans	$	—	$	417	$	488	$	150	$	165	$	1,309	$	297,156	$	299,685

Current Period Gross Charge-Offs	$	—	$	—	$	—	$	55	$	—	$	24	$	15	$	94

Residential Mortgage:
Payment performance
Performing	$	56,306	$	65,301	$	85,753	$	41,352	$	17,831	$	94,926	$	—	$	361,469
Nonperforming	11		60		417		287		109		491		—		1,375
Total Residential Mortgage Loans	$	56,317	$	65,361	$	86,170	$	41,639	$	17,940	$	95,417	$	—	$	362,844

Current Period Gross Charge-Offs	$	—	$	—	$	22	$	36	$	—	$	—	$	—	$	58

The Company considers the performance of the loan portfolio and its impact on the allowance for credit loan losses. For certain retail loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in credit cards based on payment activity: