CECL Adoption

Impact of

CECL Adoption

Adopting ASC 326 -

December 31, 2022

Impact

PCD Loans

January 1, 2023

Allowance for Credit Losses:

Commercial & Agriculture

$

3,011

$

429

$

390

$

3,830

Commercial Real Estate:

Owner Occupied

4,565

1,075

179

5,819

Non-Owner Occupied

14,138

(2,847

)

—

11,291

Residential Real Estate

3,145

2,762

386

6,293

Real Estate Construction

2,293

1,502

—

3,795

Farm Real Estate

291

(28

)

—

263

Lease Financing Receivable

429

1,743

635

2,807

Consumer and Other

98

201

78

377

Unallocated

541

(541

)

—

—

Total Allowance for Credit Losses

$

28,511

$

4,296

$

1,668

$

34,475

Reserve for Unfunded Commitments

—

3,386

—

3,386

Total Reserve for Credit Losses

$

28,511

$

7,682

$

1,668

$

37,861

Retained Earnings

Total Pre-tax Impact

$

(7,682

)

Tax Effect

1,613

Decrease to Retained Earnings

$

(6,069

)