HAWTHORN BANCSHARES, INC., 10-K filed on 3/17/2025
Annual Report
v3.25.1
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2024
Mar. 17, 2025
Jun. 28, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2024    
Document Transition Report false    
Entity File Number 0-23636    
Entity Registrant Name HAWTHORN BANCSHARES, INC.    
Entity Incorporation, State or Country Code MO    
Entity Tax Identification Number 43-1626350    
Entity Address, Address Line One 132 East High Street, Box 688    
Entity Address, City or Town Jefferson City    
Entity Address, State or Province MO    
Entity Address, Postal Zip Code 65102    
City Area Code 573    
Local Phone Number 761-6100    
Title of 12(b) Security Common Stock, $1.00 par value    
Trading Symbol HWBK    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 96,626,198
Entity Common Stock, Shares Outstanding   6,981,769  
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the following documents are incorporated by reference into the indicated parts of this report: (1) 2024 Annual Report to Shareholders - Part II and (2) definitive Proxy Statement for the 2025 Annual Meeting of Shareholders to be filed with the Commission pursuant to Regulation 14A - Part III.
    
Entity Central Index Key 0000893847    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.1
Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name Forvis Mazars, LLP
Auditor Location Kansas City, MO
Auditor Firm ID 686
v3.25.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
ASSETS    
Cash and due from banks $ 23,668 $ 15,675
Other interest-bearing deposits 27,326 77,775
Cash and cash equivalents 50,994 93,450
Certificates of deposit in other banks 1,000 0
Available-for-sale debt securities, at fair value 218,652 188,742
Other investments 5,149 6,300
Loans held for investment 1,466,160 1,539,147
Allowance for credit losses (22,044) (23,744)
Net loans 1,444,116 1,515,403
Loans held for sale 0 3,884
Premises and equipment - net 31,166 32,047
Other real estate owned - net 1,446 1,744
Cash surrender value bank-owned life insurance 38,912 2,624
Accrued interest receivable and other assets 33,750 31,156
Total assets 1,825,185 1,875,350
Deposits    
Non-interest bearing demand 385,022 402,241
Savings, interest checking and money market 846,339 846,452
Time deposits 301,821 322,151
Total deposits 1,533,182 1,570,844
Federal Home Loan Bank advances and other borrowings 81,525 107,000
Subordinated notes 49,486 49,486
Operating lease liabilities 1,678 1,213
Accrued interest payable and other liabilities 9,767 10,722
Total liabilities 1,675,638 1,739,265
Stockholders’ equity:    
Common stock, $1 par value, authorized 15,000,000 shares; issued 7,554,893 shares 7,555 7,555
Surplus 76,857 76,818
Retained earnings 89,542 76,464
Accumulated other comprehensive loss, net of tax (12,443) (13,762)
Treasury stock; 566,268, and 515,570 shares, at cost, respectively (11,964) (10,990)
Total stockholders’ equity 149,547 136,085
Total liabilities and stockholders’ equity $ 1,825,185 $ 1,875,350
v3.25.1
Consolidated Balance Sheets (Parentheticals) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 1 $ 1
Common Stock, authorized (in shares) 15,000,000 15,000,000
Common Stock, issued (in shares) 7,554,893 7,554,893
Treasury stock, shares (in shares) 566,268 515,570
v3.25.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
INTEREST INCOME      
Interest and fees on loans $ 86,472 $ 84,187 $ 62,888
Interest and fees on loans held for sale 84 160 90
Interest on investment securities:      
Taxable 3,572 3,450 3,150
Nontaxable 2,373 2,489 2,439
Other interest-bearing deposits and certificates of deposit in other banks 2,287 1,241 419
Dividends on other investments 563 441 270
Total interest income 95,351 91,968 69,256
Interest on deposits:      
Savings, interest checking and money market 18,524 16,796 5,009
Time deposits 11,240 8,886 2,093
Total interest expense on deposits 29,764 25,682 7,102
Interest on federal funds purchased and securities sold under agreements to repurchase 0 115 51
Interest on Federal Home Loan Bank advances 3,095 3,255 1,268
Interest on subordinated notes 3,899 3,774 2,072
Total interest expense on borrowings 6,994 7,144 3,391
Interest expense 36,758 32,826 10,493
Net interest income 58,593 59,142 58,763
Provision for (release of) credit losses on loans [1] 1,025 2,665 (900)
Provision for (release of) credit losses on unfunded commitments [1] 2 (325) 0
Total provision for (release of) credit losses on loans and unfunded commitments 1,027 2,340 (900)
Net interest income after provision for (release of) credit losses on loans and unfunded commitments 57,566 56,802 59,663
NON-INTEREST INCOME      
Earnings on bank-owned life insurance 1,682 57 58
Gain on sale of mortgage loans, net 896 2,560 2,661
Gains (losses) on other real estate owned, net 883 (4,429) 289
Other 1,700 1,577 1,448
Total non-interest income 14,320 7,536 13,978
Investment securities losses, net (4) (11,547) (14)
NON-INTEREST EXPENSE      
Salaries and employee benefits 26,578 28,971 27,058
Occupancy expense, net 3,251 3,247 3,175
Furniture and equipment expense 3,019 3,008 3,054
Processing, network, and bank card expense 5,530 5,151 4,788
Legal, examination, and professional fees 2,608 2,508 1,630
Advertising and promotion 976 1,522 1,529
Postage, printing, and supplies 910 846 878
Other 6,652 7,106 6,426
Total non-interest expense 49,524 52,359 48,538
Income before income taxes 22,358 432 25,089
Income tax expense (benefit) 4,102 (524) 4,338
Net income $ 18,256 $ 956 $ 20,751
Basic earnings per share (in dollars per share) $ 2.61 $ 0.14 $ 2.94
Diluted earnings per share (in dollars per share) $ 2.61 $ 0.14 $ 2.94
Service charges and other fees      
NON-INTEREST INCOME      
Income from fees $ 3,301 $ 2,942 $ 3,002
Bank card income and fees      
NON-INTEREST INCOME      
Income from fees 4,097 4,028 4,083
Wealth management revenue      
NON-INTEREST INCOME      
Income from fees 1,728 1,385 1,433
Real estate servicing fees, net      
NON-INTEREST INCOME      
Income from fees $ 33 $ (584) $ 1,004
[1] Prior to adoption of ASU No 2016-13 on January 1, 2023, credit losses were estimated using the incurred loss approach.
v3.25.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 18,256 $ 956 $ 20,751
Investment securities available-for-sale:      
Unrealized (losses) gains on investment securities available-for-sale, net of tax (2,955) 6,048 (37,019)
Adjustment for losses on sale of investment securities, net of tax 0 9,148 0
Defined benefit pension plans:      
Net gains arising during the year, net of tax 4,819 3,262 2,012
Amortization of net gains included in net periodic pension income, net of tax (545) (506) 0
Total other comprehensive income (loss) 1,319 17,952 (35,007)
Total comprehensive income (loss) $ 19,575 $ 18,908 $ (14,256)
v3.25.1
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Restricted Stock Units
Adoption of ASU 2016-13
Balance, January 01, 2023
Common Stock
Common Stock
Balance, January 01, 2023
Surplus
Surplus
Restricted Stock Units
Surplus
Balance, January 01, 2023
Retained Earnings
Retained Earnings
Adoption of ASU 2016-13
Retained Earnings
Balance, January 01, 2023
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Restricted Stock Units
Accumulated Other Comprehensive Income (Loss)
Balance, January 01, 2023
Treasury Stock
Treasury Stock
Restricted Stock Units
Treasury Stock
Balance, January 01, 2023
Beginning balance at Dec. 31, 2021 $ 148,956       $ 7,024   $ 64,437     $ 82,300     $ 3,293     $ (8,098)    
Increase (Decrease) in Stockholders' Equity                                    
Net income 20,751                 20,751                
Other comprehensive income (loss) (35,007)                       (35,007)          
Purchase of treasury stock (2,892)                             (2,892)    
Stock dividend 0       260   6,605     (6,865)                
Cash dividends declared, common stock (4,397)                 (4,397)                
Ending balance at Dec. 31, 2022 127,411       7,284   71,042     91,789     (31,714)     (10,990)    
Increase (Decrease) in Stockholders' Equity                                    
Net income 956                 956                
Other comprehensive income (loss) 17,952                       17,952          
Share-based compensation expense 42           42                      
Stock dividend 0       271   5,734     (6,005)                
Cash dividends declared, common stock (4,695)                 (4,695)                
Ending balance at Dec. 31, 2023 136,085   $ (5,581) $ 121,830 7,555 $ 7,284 76,818   $ 71,042 76,464 $ (5,581) $ 86,208 (13,762)   $ (31,714) (10,990)   $ (10,990)
Increase (Decrease) in Stockholders' Equity                                    
Net income 18,256                 18,256                
Other comprehensive income (loss) 1,319                       1,319          
Share-based compensation expense 184           184                      
Purchase of treasury stock (1,116)                             (1,116)    
Issuance of treasury shares for share based awards, net   $ (3)           $ (145)           $ 0     $ 142  
Cash dividends declared, common stock (5,178)                 (5,178)                
Ending balance at Dec. 31, 2024 $ 149,547       $ 7,555   $ 76,857     $ 89,542     $ (12,443)     $ (11,964)    
v3.25.1
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Standards Update [Extensible Enumeration]     Accounting Standards Update 2016-13 [Member]
2022 stock dividends      
Cash dividends declared (in dollars per share)     $ 0.04
2022 cash dividends      
Cash dividends declared (in dollars per share)     $ 0.66
2023 stock dividends      
Cash dividends declared (in dollars per share)   $ 0.04  
2023 cash dividends      
Cash dividends declared (in dollars per share)   $ 0.68  
2024 cash dividends      
Cash dividends declared (in dollars per share) $ 0.74    
v3.25.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income $ 18,256 $ 956 $ 20,751
Adjustments to reconcile net income to net cash from operating activities:      
Provision for (release of) for credit losses on loans and unfunded commitments 1,027 2,340 (900)
Depreciation expense 1,650 2,106 2,141
Net amortization of investment securities, premiums, and discounts 789 1,008 1,358
Change in fair value of mortgage servicing rights 68 1,200 (176)
Investment securities losses, net 4 11,547 14
Losses (gains) on sales and dispositions of premises and equipment 199 (133) (160)
Gain on sales and dispositions of other real estate & repossessed assets (747) (298) (255)
Proceeds from the sale of mortgage servicing rights 1,670 0 0
(Release of) provision for other real estate owned (127) 4,729 (29)
Share-based compensation expense 184 42 0
Increase in cash surrender value - life insurance (1,288) (57) (58)
Decrease (increase) in other assets 1,303 (5,602) (2,745)
Decrease in operating lease liabilities (258) (320) (304)
(Decrease) increase in other liabilities (1,021) 3,423 (902)
Origination of mortgage loans held for sale (44,134) (106,978) (83,012)
Proceeds from the sale of mortgage loans held for sale 48,914 106,206 87,217
Gain on sale of mortgage loans, net (896) (2,560) (2,661)
Net cash provided by operating activities 25,593 17,609 20,279
Cash flows from investing activities:      
Purchase of certificates of deposit in other banks (1,000) 0 (735)
Proceeds from maturities of certificates of deposit in other banks 0 2,219 2,966
Purchase of bank-owned life insurance (35,000) 0 0
Net decrease (increase) in loans 66,631 (18,267) (219,646)
Purchase of available-for-sale debt securities (57,248) (29,512) (21,282)
Proceeds from maturities of available-for-sale debt securities 10,533 23,780 30,899
Proceeds from calls of available-for-sale debt securities 12,276 615 2,295
Proceeds from sales of available-for-sale debt securities 0 74,506 0
Purchases of FHLB stock (931) (14,672) (13,334)
Proceeds from sales of FHLB stock 2,078 14,757 12,375
Purchases of premises and equipment (3,004) (2,097) (2,566)
Proceeds from sales of premises and equipment 425 172 317
Proceeds from sales of other real estate and repossessed assets 6,494 2,691 2,176
Net cash provided by (used in) investing activities 1,254 54,192 (206,535)
Cash flows from financing activities:      
Net (decrease) increase in demand deposits (17,219) (51,202) 377
Net (decrease) increase in interest-bearing transaction accounts (113) (77,150) 105,244
Net (decrease) increase in time deposits (20,330) 67,117 9,638
Net decrease in federal funds purchased and securities sold under agreements to repurchase 0 (5,187) (18,642)
Repayment of FHLB advances and other borrowings (40,203) (337,840) (315,399)
FHLB advances 14,728 346,840 335,981
Purchase of treasury stock (1,119) 0 (2,892)
Cash dividends paid - common stock (5,047) (4,649) (4,240)
Net cash (used in) provided by financing activities (69,303) (62,071) 110,067
Net (decrease) increase in cash and cash equivalents (42,456) 9,730 (76,189)
Cash and due from banks at beginning of year 93,450 83,720 159,909
Cash and due from banks at end of year 50,994 93,450 83,720
Cash paid during the year for:      
Interest 36,888 32,059 9,919
Income taxes 2,596 1,925 4,307
Noncash investing and financing activities:      
Other real estate and repossessed assets acquired in settlement of loans 3,631 71 162
Right of use assets obtained in exchange for new operating lease liabilities 723 0 0
Dividends declared not paid - common stock 1,328 1,197 1,151
Stock dividends $ 0 $ 6,005 $ 6,865
v3.25.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Hawthorn Bancshares, Inc. (the "Company") through its subsidiary, Hawthorn Bank (the "Bank"), provides a broad range of banking services to individual and corporate customers located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions providing financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies.
The accompanying consolidated financial statements of the Company have been prepared in conformity with United States generally accepted accounting principles ("U.S. GAAP"). The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for credit losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company's management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements other than what is disclosed in the Pending Litigation section below.
The significant accounting policies used by the Company in the preparation of the consolidated financial statements are summarized below:
Principles of Consolidation
In December of 2008, the Company formed Hawthorn Real Estate, LLC, (the "Real Estate Company"); a wholly owned subsidiary of the Company. In December of 2017, the Company formed Hawthorn Risk Management, Inc., (the "Insurance Captive"); a wholly owned subsidiary of the Company. The consolidated financial statements include the accounts of the Company, the Bank, the Real Estate Company, and the Insurance Captive. The Insurance Captive was dissolved December 1, 2023. All significant intercompany accounts and transactions have been eliminated in consolidation.
Loans
Loans that the Company has the intent and ability to hold for the foreseeable future or to maturity are held for investment at their stated unpaid principal balance amount less unearned income and the allowance for credit losses. Income on loans is accrued on a simple-interest basis. Loan origination fees and certain direct costs are deferred and recognized over the life of the loan as an adjustment to yield.
Loans Held for Sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale. Prior to September 30, 2024, these loans were initially measured at fair value under the fair value option election with subsequent changes in fair value recognized in mortgage banking income. As of September 30, 2024, loans held for sale are being carried at the lower of cost or estimated fair value. The loans are primarily sold to Freddie Mac, Fannie Mae, PennyMac, and various other secondary market investors. The Company sells loans with servicing retained or released depending on pricing and market conditions. There were no mortgage loans held for sale at December 31, 2024 compared to $3.9 million at December 31, 2023.
Non-Accrual Loans
Loans are placed on non-accrual status when management believes that the borrower's financial condition, after consideration of business conditions and collection efforts, is such that collection of interest is doubtful. Loans that are
contractually 90 days past due as to principal and/or interest payments are generally placed on non-accrual, unless they are both well-secured and in the process of collection. Real estate loans secured by one-to-four family residential properties are exempt from these non-accrual guidelines. These loans are placed on non-accrual status after they become 120 days past due. Subsequent interest payments received on such loans are applied to principal if doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. A loan remains on non-accrual status until the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current.
Allowance for Credit Losses
The allowance for credit losses ("ACL") is measured using a lifetime expected loss model that incorporates relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. The allowance for credit losses is a valuation account that is deducted from loans amortized cost basis to present the net amount expected to be collected on the instrument. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Loans are charged off against the allowance for credit losses when management believes the balance has become uncollectible.
For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using relevant peer historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and the Company's outstanding loan balances during a lookback period. The Company chose to use relevant peer loan loss data due to statistical relevance concerns, low observation counts, historical data limitations, and the inability to secure through the cycle loan-level data. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of a single macroeconomic variable, which is the civilian unemployment rate. The adjustments are based on results from various regression models projecting the impact of the selected macroeconomic variable to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjusted loss rate is applied to the loans over the remaining contractual lives, adjusted for expected prepayments and curtailments. The contractual term excludes expected extensions, renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Agriculture loans also use the remaining life methodology for estimating life of loan losses. Additionally, the allowance for credit losses considers qualitative or environmental factors, such as: lending policies and procedures; economic conditions; the nature, volume and terms of the portfolio; lending staff and management; past due loans; the loan review system; collateral values; concentrations of credit; and external factors.
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures
The Company maintains a separate allowance for credit losses for off-balance-sheet credit exposures, including unfunded loan commitments, unless the associated obligation is unconditionally cancellable by the Company. This allowance is included in other liabilities on the consolidated balance sheets with associated expense recognized as a component of the provision for credit losses on the consolidated statements of income. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded. The allowance for credit losses on unfunded commitments totaled $0.9 million at both December 31, 2024 and 2023, respectively.
Certificates of Deposit in other banks
Certificates of deposit are investments made by the Company with other financial institutions, in amounts less than $250,000 each in order to qualify for insurance coverage under the Federal Deposit Insurance Corporation ("FDIC"), that are carried at cost which approximates fair values.
Investment Securities
Available-for-sale Securities
The largest component of the Company's investment portfolio consists of debt securities which are classified as available-for-sale and are carried at fair value. Changes in fair value, excluding certain losses associated with other-than-temporary impairment, are reported in other comprehensive income, net of taxes, a component of stockholders' equity. Securities are periodically evaluated for impairment related to credit loss in accordance with guidance provided by the Financial Accounting Standards Board ("FASB") under Accounting Standards Codification ("ASC") Topic 326, Financial Instruments – Credit Losses. The Company assesses whether it intends to sell the securities or believes it more likely than not that it will be required to sell the security before the anticipated recovery. If neither condition is met, but the Company does not expect to recover the amortized cost basis, the Company determines whether a credit loss has occurred, which is then recognized in current earnings. Any impairment that has not been recorded through an allowance for credit losses related to all other factors is recognized in other comprehensive income.
Premiums and discounts are amortized using the interest method over the lives of the respective securities, with consideration of historical and estimated prepayment rates for mortgage-backed securities, as an adjustment to yield. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings based on the specific identification method for determining the cost of securities sold.
Other Investment Securities
Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in Federal Home Loan Bank of Des Moines ("FHLB") stock, and Midwest Independent BankersBank ("MIB") stock, that do not have readily determinable fair values, are required for membership in those organizations.
Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment.
Capital Stock of the FHLB
The Bank, as a member of the Federal Home Loan Bank System administered by the Federal Housing Finance Agency, is required to maintain an investment in the capital stock of the Federal Home Loan Bank of Des Moines (FHLB) in an amount equal to 6 basis points of the Bank's year-end total assets plus 4.50% of advances from the FHLB to the Bank. These investments are recorded at cost, which represents redemption value.
Premises and Equipment
Premises and equipment are stated at cost, less accumulated depreciation. Depreciation applicable to buildings and improvements and furniture and equipment is charged to expense using straight-line and accelerated methods over the estimated useful lives of the assets. Such lives are estimated to be five to 40 years for buildings and improvements and three to 15 years for furniture and equipment. Maintenance and repairs are charged to expense as incurred.
Derivative Instruments
The Company recognizes derivatives as either assets or liabilities in the balance sheet, and measures those instruments at fair value. The Company enters into interest rate swap agreements to facilitate the risk management strategies of certain commercial banking clients. The Company mitigates this risk by entering into equal and offsetting interest rate swap agreements with highly rated third-party financial institutions.
Loan commitments related to the origination or acquisition of mortgage loans that will be held for sale are accounted for as derivative instruments. The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). The Company also enters into forward sales commitments for the mortgage loans underlying the rate lock commitments. As of December 31, 2024, the Company elected not to record the derivatives associated with IRLC due to the reduced volume of loans sold to the secondary market and therefore immateriality of the derivative.
The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows.
In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Mortgage Servicing Rights
The Company originates and sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors or master servicer. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities.
Mortgage servicing rights ("MSRs") are carried at fair value in the consolidated balance sheet with changes in the fair value recognized in earnings. Because most servicing rights do not trade in an active market with readily observable prices, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies, ancillary income, and cost to service. These assumptions are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party valuation specialist firm.
In addition to the changes in fair value of the mortgage servicing rights, the Company also records loan servicing fee income as part of real estate servicing fees, net, in the consolidated statements of income. Loan servicing fee income represents revenue earned for servicing mortgage loans. The servicing fees are based on contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected. Corresponding loan servicing costs are charged to expense as incurred.
Other Real Estate Owned and Repossessed Assets
Other real estate owned and repossessed assets consist of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Other real estate owned assets are initially recorded as held for sale at the fair value of the collateral less estimated selling costs. Any adjustment is recorded as a charge-off against the allowance for credit losses. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. The valuation write-downs are recorded as other non-interest expense. The Company establishes a valuation allowance related to other real estate owned and repossessed assets on an asset-by-asset basis. The valuation allowance is created during the holding period when the fair value less cost to sell is lower than the cost of the asset.
Pension Plan
The Company provides a noncontributory defined benefit pension plan for all full-time and eligible employees. The benefits are based on age, years of service and the level of compensation during the respective employee's highest ten years of compensation before retirement. Net periodic costs are recognized as employees render the services necessary to earn the retirement benefits. The Company records annual amounts relating to its pension plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Company reviews its assumptions on an annual basis and may make modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions.
The Company follows authoritative guidance included in the FASB ASC Topic 715, Compensation – Retirement Plans under the subtopic Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans. ASC Topic 715 requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its consolidated balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. This guidance also requires an employer to measure the funded status of a plan as of the date of its fiscal year-end, with limited exceptions. Additional disclosures are required to provide users with an understanding of how investment allocation decisions are made, major categories of plan assets, and fair value measurement of plan assets as defined in ASC Topic 820, Fair Value Measurements and Disclosures.

Investments in Historic Tax Credits.
The Company has a noncontrolling financial investment in a private investment fund and partnership that finances the rehabilitation and re-use of historic buildings. This unconsolidated investment may generate a return through the realization of federal income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investments over a period of time. Investments in historic tax credits are accounted for under the equity method of accounting and the Company’s recorded investment in these entities is carried in other assets on the Consolidated Balance Sheets with any unfunded commitment recorded in other liabilities. The tax credits and other net tax benefits received are recognized as a component of income tax expense in the Consolidated Statements of Income.
Income Taxes
Income taxes are accounted for under the asset/liability method by recognizing the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Deferred income tax assets and liabilities are provided as temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements at the enacted tax rate expected to be applied in the period the deferred tax item is expected to be realized. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.
A tax position is initially recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Penalties and interest incurred under the applicable tax law are classified as income tax expense. The Company has not recognized any tax liabilities or any interest or penalties in income tax expense related to uncertain tax positions as of December 31, 2024, 2023, and 2022.
Trust Department
Property held by the Bank in a fiduciary or agency capacity for customers is not included in the accompanying consolidated balance sheets, since such items are not assets of the Company. Trust department income is recognized on the accrual basis.
Consolidated Statements of Cash Flows
For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of short-term federal funds sold and securities sold or purchased under agreements to resell, overnight interest earning deposits with banks, and cash and due from banks. The Federal Reserve is authorized to establish reserve requirements on depository institutions. In 2020, the Federal Reserve reduced the reserve requirement to zero percent. As such, cash balances at the Federal Reserve at December 31, 2024 and 2023 were not subject to a reserve requirement.
Treasury Stock
The purchase of the Company's common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost associated with such stock on a first-in-first-out basis. Gains on the sale of treasury stock are credited to additional paid-in-capital. Losses on the sale of treasury stock are charged to additional paid-in-capital to the extent of previous gains, otherwise charged to retained earnings.
Reclassifications
Certain prior year information has been reclassified to conform to the 2024 presentation.
Recent Accounting Pronouncements
Standards Adopted in 2024
Segment disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures on both an annual and interim basis about significant segment expenses, including for companies with only one reportable segment. This ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of this ASU did not have a material effect on the Company's consolidated financial statements and related disclosures. See Note 20 Segment Information.
Impact of Recently Issued Accounting Standards But Not Yet Adopted
Income Taxes. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The ASU requires that all entities disclose on an annual basis (1) the amount of income taxes paid, disaggregated by federal, state and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal or greater than 5 percent of total income taxes paid. The ASU also requires that all entities disclose (1) income (loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic or foreign and (2) income tax expense (or benefit) from continuing operations disaggregated by federal (national), state and foreign. This ASU is effective for public business entities for annual periods beginning after December 15, 2024. The Company does not expect adoption of the ASU to have a material effect on the Company's consolidated financial statements.
Income Statement. In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU require public companies to disclose, in the notes to the financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Additionally, in January 2025, the FASB issued ASU No. 2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This ASU amends the effective date of ASU No. 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU No. 2024-03 is permitted. The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.
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Loans and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
Loans
Major classifications within the Company’s held for investment loan portfolio at December 31, 2024 and 2023 were as follows:
(dollars in thousands)20242023
Commercial, financial, and agricultural$202,329 $226,275 
Real estate construction − residential
32,046 58,347 
Real estate construction − commercial
80,435 130,296 
Real estate mortgage − residential
361,735 372,391 
Real estate mortgage − commercial
775,594 731,024 
Installment and other consumer14,021 20,814 
Total loans held for investment$1,466,160 $1,539,147 

The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the Missouri communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Installment and other consumer loans consist primarily of the financing of vehicles. Accrued interest on loans totaled $6.5 million and $7.2 million at December 31, 2024 and 2023, respectively, and is included in the accrued interest receivable and other assets on the Company's consolidated balance sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable. At December 31, 2024, $746.3 million of loans were pledged to the FHLB as collateral for borrowings and letters of credit.
The following is a summary of loans to directors and executive officers or to entities in which such individuals had a beneficial interest of the Company:
(dollars in thousands)
Balance at December 31, 2023
$9,597 
New loans9,452 
Amounts collected(6,474)
Balance at December 31, 2024
$12,575 
Management believes such loans were made in the normal course of business on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the same time for comparable transactions with other persons, and did not involve more than the normal risk of collectability or present unfavorable features.
Allowance for Credit Losses
The allowance for credit losses is measured using a lifetime expected loss model that incorporates relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. The allowance for credit losses is a valuation account that is deducted from loans amortized cost basis to present the net amount expected to be collected on the instrument. Expected recoveries are included in the allowance and do not exceed the
aggregate of amounts previously charged-off and expected to be charged-off. Loans are charged off against the allowance for credit losses when management believes the balance has become uncollectible.
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures
The Company maintains a separate allowance for credit losses for off-balance-sheet credit exposures, including unfunded loan commitments, unless the associated obligation is unconditionally cancellable by the Company. This allowance is included in other liabilities on the consolidated balance sheets with associated expense recognized as a component of the provision for credit losses on the consolidated statements of income. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.
Sensitivity in the Allowance for Credit Loss Model
The allowance for credit losses is an estimate that requires significant judgment including projections of the macroeconomic environment. The forecasted macroeconomic environment continuously changes, which can cause fluctuations in estimated expected losses.
The following table illustrates the changes in the allowance for credit losses by portfolio segment:
(dollars in thousands)Commercial,
Financial, &
Agricultural		 Real Estate
Construction -
Residential		 Real Estate
Construction -
Commercial		 Real Estate
Mortgage -
Residential		 Real Estate
Mortgage -
Commercial		 Installment
and other
Consumer		 Un-
allocated		 Total
Balance at, December 31, 20212,717 137 588 2,482 10,662 256 61 16,903 
Charge-offs(135)— — — (181)(321)— (637)
Recoveries56 — 22 45 11 88 — 222 
Provision for (release of) loan losses (1)97 20 265 802 (2,492)303 105 (900)
Balance at, December 31, 20222,735 157 875 3,329 8,000 326 166 15,588 
Adoption of ASU 2016-13$(649)$291 $2,894 $1,890 $1,613 $(80)$(166)$5,793 
Balance at January 1, 20232,086 448 3,769 5,219 9,613 246 — 21,381 
Charge-offs(161)— — (88)(32)(347)— (628)
Recoveries192 — 22 23 4 85 — 326 
Provision for (release of) credit losses1,091 595 (518)110 952 248 187 2,665 
Balance at, December 31, 20233,208 1,043 3,273 5,264 10,537 232 187 23,744 
Charge-offs$(2,238)$— $— $(51)$(437)$(265)$— $(2,991)
Recoveries118 — 27 13 — 108 — 266 
Provision for (release of) credit losses472 (465)(1,079)84 2,205 63 (255)1,025 
Balance at, December 31, 20241,560 578 2,221 5,310 12,305 138 (68)22,044 
(1) Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.
Collateral-Dependent Loans
Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Under the CECL methodology, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance on the fair value of collateral.
The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and the loan’s amortized cost. If the fair value of the collateral exceeds the loan’s amortized cost, no allowance is necessary. The Company’s policy is to obtain appraisals on any significant pieces of collateral. Higher discounts are applied in determining fair value for real estate collateral in industries that are undergoing significant stress, or for properties that are specialized use or have limited marketability.
The amortized cost of collateral-dependent loans by class as of December 31, 2024 and 2023 was as follows:
Collateral Type
(dollars in thousands)Real EstateOtherAllowance Allocated
December 31, 2024
Commercial, financial, and agricultural$— $766 $125 
Real estate construction − residential454 — 194 
Real estate mortgage − commercial65 — — 
Total$519 $766 $319 
December 31, 2023
Commercial, financial, and agricultural$— $2,221 $1,300 
Real estate construction − residential432 — 164 
Real estate mortgage − residential46 — 19 
Real estate mortgage − commercial2,369 — — 
Total$2,847 $2,221 $1,483 
Credit Quality
The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment. Risk ratings are assigned for each loan at the time of approval, and they change as circumstances dictate during the term of the loan.
•Pass - loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral.
•Watch - loans that have one or more weaknesses identified that may result in the borrower being unable to meet repayment terms or when the Company’s credit position could deteriorate at some future date.
•Special Mention - loans that have negative financial trends, or other weaknesses that if left uncorrected, could threaten its capacity to meet its debt obligations. This is a transitional grade that is closely monitored by management for improvement or deterioration.
•Substandard - loans that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified may have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Such loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected.
•Doubtful - loans that have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. These loans are also on non-accrual status.
•Non-accrual - loans that are delinquent for 90 days or more and the ultimate collectability of interest or principal is no longer probable. Real estate loans secured by one-to-four family residential properties are exempt from these non-accrual guidelines. These loans are placed on non-accrual status after they become 120 days past due (The majority of the Company's non-accrual loans have a substandard risk grade.)
The following table presents the recorded investment by risk categories at December 31, 2024:
Term Loans
Amortized Cost Basis by Origination Year and Risk Grades
(dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
December 31, 2024
Commercial, Financial, & Agricultural
Pass$22,726 $21,302 $30,025 $25,338 $26,557 $3,932 $62,205 $1,531 $193,616 
Watch— 120 1,473 — — 262 504 — 2,359 
Special Mention— — — — 309 — 741 — 1,050 
Substandard— — 3,350 628 — — — 403 4,381 
Doubtful— — — — — — 79 — 79 
Non-accrual loans286 87 78 — 37 — 356 — 844 
Total$23,012 $21,509 $34,926 $25,966 $26,903 $4,194 $63,885 $1,934 $202,329 
Gross YTD charge-offs— 230 — 104 2 106 1,796 — 2,238 
Real Estate Construction - Residential
Pass$16,368 $13,808 $601 $617 $165 $— $— $33 $31,592 
Non-accrual loans454 — — — — — — — 454 
Total$16,822 $13,808 $601 $617 $165 $— $— $33 $32,046 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Construction - Commercial
Pass$49,742 $7,057 $10,424 $3,828 $622 $564 $7,072 $— $79,309 
Watch911 124 13 — — — — — 1,048 
Substandard— 29 — — — — — — 29 
Non-accrual loans— — — — — 49 — — 49 
Total$50,653 $7,210 $10,437 $3,828 $622 $613 $7,072 $— $80,435 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Mortgage - Residential
Pass$30,005 $46,795 $115,928 $49,519 $42,036 $23,440 $44,148 $1,543 $353,414 
Watch5,702 — 40 391 423 675 30 — 7,261 
Substandard— — — — — 98 — — 98 
Non-accrual loans— — 426 89 — 278 169 — 962 
Total$35,707 $46,795 $116,394 $49,999 $42,459 $24,491 $44,347 $1,543 $361,735 
Gross YTD charge-offs— — — — — 14 37 — 51 
Real Estate Mortgage - Commercial
Pass$56,648 $117,853 $212,698 $203,591 $69,342 $57,352 $14,815 $137 $732,436 
Watch2,298 51 4,763 1,961 — 184 — 581 9,838 
Special Mention27,271 — 5,679 — — — — — 32,950 
Substandard— — 231 — — — — — 231 
Non-accrual loans64 75 — — — — — — 139 
Total$86,281 $117,979 $223,371 $205,552 $69,342 $57,536 $14,815 $718 $775,594 
Gross YTD charge-offs— 340 — 65 — 32 — — 437 
Installment and other Consumer
Pass$2,188 $3,636 $3,591 $1,165 $554 $2,805 $72 $— $14,011 
Non-accrual loans— — — — — 10 — — 10 
Total$2,188 $3,636 $3,591 $1,165 $554 $2,815 $72 $— $14,021 
Gross YTD charge-offs10 11 9 3 1 230 1 — 265 
Total Portfolio
Pass$177,677 $210,451 $373,267 $284,058 $139,276 $88,093 $128,312 $3,244 $1,404,378 
Watch8,911 295 6,289 2,352 423 1,121 534 581 20,506 
Special Mention27,271 — 5,679 — 309 — 741 — 34,000 
Substandard— 29 3,581 628 — 98 — 403 4,739 
Doubtful— — — — — — 79 — 79 
Non-accrual loans804 162 504 89 37 337 525 — 2,458 
Total$214,663 $210,937 $389,320 $287,127 $140,045 $89,649 $130,191 $4,228 $1,466,160 
Total Gross YTD charge-offs$10 $581 $9 $172 $3 $382 $1,834 $— $2,991 
The following table presents the recorded investment by risk categories at December 31, 2023:
Term Loans
Amortized Cost Basis by Origination Year and Risk Grades
(dollars in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
December 31, 2023
Commercial, Financial, & Agricultural
Pass$40,103 $43,082 $32,812 $30,965 $4,774 $5,022 $55,379 $213 $212,350 
Watch1 2,505 32 586 3 282 2,502 — 5,911 
Substandard371 3,758 19 16 — — 323 1,299 5,786 
Non-accrual loans159 96 317 — 7 — 1,649 — 2,228 
Total$40,634 $49,441 $33,180 $31,567 $4,784 $5,304 $59,853 $1,512 $226,275 
Gross YTD charge-offs— 1 — — — 160 — — 161 
Real Estate Construction - Residential
Pass$39,847 $17,259 $634 $175 $— $— $— $— $57,915 
Non-accrual loans432 — — — — — — — 432 
Total$40,279 $17,259 $634 $175 $— $— $— $— $58,347 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Construction - Commercial
Pass$49,041 $53,058 $24,371 $1,040 $31 $735 $187 $— $128,463 
Watch934 17 — — — — 103 — 1,054 
Substandard710 — — — — — — — 710 
Non-accrual loans— — — — — 69 — — 69 
Total$50,685 $53,075 $24,371 $1,040 $31 $804 $290 $— $130,296 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Mortgage - Residential
Pass$65,472 $121,430 $62,998 $47,884 $7,242 $19,193 $44,574 $202 $368,995 
Watch179 251 411 293 71 1,310 23 — 2,538 
Substandard16 — — 129 — 126 — — 271 
Non-accrual loans— 23 93 135 — 246 90 — 587 
Total$65,667 $121,704 $63,502 $48,441 $7,313 $20,875 $44,687 $202 $372,391 
Gross YTD charge-offs— — — 75 — — 13 — 88 
Real Estate Mortgage - Commercial
Pass$99,081 $208,699 $204,789 $84,363 $27,085 $39,941 $16,059 $659 $680,676 
Watch15,759 10,978 2,737 91 345 897 70 — 30,877 
Substandard— 215 15,944 — 45 289 — — 16,493 
Non-accrual loans1,817 54 712 212 83 — 100 — 2,978 
Total$116,657 $219,946 $224,182 $84,666 $27,558 $41,127 $16,229 $659 $731,024 
Gross YTD charge-offs— — — — — 32 — — 32 
Installment and other Consumer
Pass$7,430 $6,497 $2,720 $1,287 $987 $1,803 $90 $— $20,814 
Total$7,430 $6,497 $2,720 $1,287 $987 $1,803 $90 $— $20,814 
Gross YTD charge-offs84 23 7 — — 232 1 — 347 
Total Portfolio
Pass$300,974 $450,025 $328,324 $165,714 $40,119 $66,694 $116,289 $1,074 $1,469,213 
Watch16,873 13,751 3,180 970 419 2,489 2,698 — 40,380 
Substandard1,097 3,973 15,963 145 45 415 323 1,299 23,260 
Non-accrual loans2,408 173 1,122 347 90 315 1,839 — 6,294 
Total$321,352 $467,922 $348,589 $167,176 $40,673 $69,913 $121,149 $2,373 $1,539,147 
Total Gross YTD charge-offs$84 $24 $7 $75 $— $424 $14 $— $628 
Delinquent and Non-Accrual Loans
The delinquency status of loans is determined based on the contractual terms of the notes. Loans are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual status when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual status, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Subsequent interest payments received on non-accrual loans are applied to principal if any doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally six months.
The following tables present the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of December 31, 2024 and 2023.
(dollars in thousands)Non-accrual with no AllowanceNon-accrual with AllowanceTotal Non-accrual90 Days Past Due And Still AccruingTotal Non-performing Loans
December 31, 2024
Commercial, Financial, and Agricultural$— $923 $923 $— $923 
Real estate construction − residential— 454 454 — 454 
Real estate construction − commercial— 49 49 — 49 
Real estate mortgage − residential— 963 963 207 1,170 
Real estate mortgage − commercial— 138 138 — 138 
Installment and Other Consumer— 10 10 3 13 
Total$— $2,537 $2,537 $210 $2,747 
December 31, 2023
Commercial, Financial, and Agricultural$— $2,228 $2,228 $— $2,228 
Real estate construction − residential— 432 432 —432 
Real estate construction − commercial— 69 69 —69 
Real estate mortgage − residential— 587 587 115702 
Real estate mortgage − commercial2,368 610 2,978 —2,978 
Installment and Other Consumer— — — 4 4 
Total$2,368 $3,926 $6,294 $119 $6,413 
No material amount of interest income was recognized on non-accrual loans during the year ended December 31, 2024.
The following table provides aging information for the Company's past due and non-accrual loans at December 31, 2024 and 2023.
(dollars in thousands)Current or
Less Than
30 Days
Past Due		30 - 89 Days
Past Due		90 Days
Past Due
And Still
Accruing		Non-AccrualTotal
December 31, 2024
Commercial, Financial, and Agricultural$201,201 $205 $— $923 $202,329 
Real estate construction − residential31,592 — — 454 32,046 
Real estate construction − commercial80,386 — — 49 80,435 
Real estate mortgage − residential358,393 2,172 207 963 361,735 
Real estate mortgage − commercial773,918 1,538 — 138 775,594 
Installment and Other Consumer13,900 108 3 10 14,021 
Total$1,459,390 $4,023 $210 $2,537 $1,466,160 
December 31, 2023
Commercial, Financial, and Agricultural$223,845 $202 $— $2,228 $226,275 
Real estate construction − residential57,568 347 — 432 58,347 
Real estate construction − commercial130,227 — — 69 130,296 
Real estate mortgage − residential368,956 2,733 115 587 372,391 
Real estate mortgage − commercial728,029 17 — 2,978 731,024 
Installment and Other Consumer20,607 203 4 — 20,814 
Total$1,529,232 $3,502 $119 $6,294 $1,539,147 
Loan Modifications for Borrowers Experiencing Financial Difficulty
In the normal course of business, the Company may execute loan modifications with borrowers. These modifications are analyzed to determine whether the modification is considered concessionary, long-term and made to a borrower experiencing financial difficulty. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. If a loan modification is determined to be made to a borrower experiencing financial difficulty, the loan is considered collateral-dependent and evaluated as part of the allowance for credit losses as described above in the Allowance for Credit Losses section of this note.

For the year ended December 31, 2024, the Company did not modify any loans made to borrowers experiencing financial difficulty. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term.
Loans Held For Sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale. Prior to September 30, 2024, these loans were initially measured at fair value under the fair value option election with subsequent changes in fair value recognized in mortgage banking income. As of September 30, 2024, loans held for sale are being carried at the lower of cost or estimated fair value. The loans are primarily sold to Freddie Mac, Fannie Mae, PennyMac, and various other secondary market investors. The Company sells loans with servicing retained or released depending on pricing and market conditions. There were no mortgage loans held for sale at December 31, 2024 compared to $3.9 million at December 31, 2023.
v3.25.1
Other Real Estate and Other Assets Acquired in Settlement of Loans
 12 Months Ended
Dec. 31, 2024
Other Real Estate [Abstract]  
Other Real Estate and Other Assets Acquired in Settlement of Loans Other Real Estate and Other Assets Acquired in Settlement of Loans
(in thousands)20242023
Real estate construction - commercial$2,549 $7,668 
Real estate mortgage - residential42 20 
Real estate mortgage - commercial858 — 
Repossessed assets— 6 
Total$3,449 $7,694 
Less valuation allowance for other real estate owned(2,003)(5,950)
Total other real estate owned$1,446 $1,744 
At December 31, 2024, there were $0.3 million of consumer mortgage loans secured by residential real estate properties in the process of foreclosure compared to $0.1 million at December 31, 2023.
Activity in the valuation allowance for other real estate owned in settlement of loans for the years indicated:
(dollars in thousands)202420232022
Balance, beginning of year$5,950 $2,664 $2,911 
Provision for (release of) other real estate owned (127)4,729 (29)
Charge-offs(3,820)(1,443)(218)
Balance, end of year$2,003 $5,950 $2,664 
v3.25.1
Investment Securities
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The amortized cost, gross unrealized gains and losses, and fair value of debt securities classified as available-for-sale at December 31, 2024 and 2023 were as follows:
Total
Amortized
Cost		Gross UnrealizedFair
Value
(dollars in thousands)GainsLosses
December 31, 2024
U.S. Treasury$4,937 $— $(22)$4,915 
U.S. government and federal agency obligations408 — (7)401 
U.S. government-sponsored enterprises13,020 11 (227)12,804 
Obligations of states and political subdivisions125,559 7 (23,080)102,486 
Mortgage-backed securities84,729 59 (6,678)78,110 
Other debt securities (a)19,419 49 (781)18,687 
Bank issued trust preferred securities (a)1,486 — (237)1,249 
Total available-for-sale securities$249,558 $126 $(31,032)$218,652 
December 31, 2023
U.S. Treasury$1,977 $1 $— $1,978 
U.S. government and federal agency obligations446 — (19)427 
U.S. government-sponsored enterprises22,042 16 (236)21,822 
Obligations of states and political subdivisions126,396 55 (19,566)106,885 
Mortgage-backed securities51,736 27 (6,123)45,640 
Other debt securities (a)11,825 22 (1,026)10,821 
Bank issued trust preferred securities (a)1,486 — (317)1,169 
Total available-for-sale securities$215,908 $121 $(27,287)$188,742 
(a) Certain hybrid instruments possessing characteristics typically associated with debt obligations.
The Company's investment securities are classified as available-for-sale. Agency bonds and notes, SBA-guaranteed loan certificates, residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations include securities issued by the Government National Mortgage Association, a U.S. government agency, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the FHLB, which are U.S. government-sponsored enterprises
Debt securities with carrying values aggregating approximately $82.4 million and $89.2 million at December 31, 2024 and December 31, 2023, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.
The amortized cost and fair value of debt securities classified as available-for-sale at December 31, 2024, by contractual maturity are shown below. Accrued interest on investments totaled $1.6 million and $1.4 million at December 31, 2024 and December 31, 2023, respectively, and is included in the accrued interest receivable and other assets on the Company's consolidated balance sheets. The total amount of accrued interest is excluded from the amortized cost basis of investments presented below. Further, the Company has elected not to measure an allowance for credit losses for accrued interest
receivable. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.
(dollars in thousands)Amortized
Cost		Fair
Value
Due in one year or less$4,275 $4,270 
Due after one year through five years19,715 19,480 
Due after five years through ten years37,506 34,431 
Due after ten years103,333 82,361 
Total164,829 140,542 
Mortgage-backed securities84,729 78,110 
Total available-for-sale securities$249,558 $218,652 
Other Investment Securities
Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in FHLB stock and MIB stock, that do not have readily determinable fair values, are required for membership in those organizations.
(dollars in thousands)20242023
FHLB stock$4,924 $6,071 
MIB stock151 151 
Equity securities with readily determinable fair values74 78 
Total other investment securities$5,149 $6,300 
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024 and December 31, 2023 were as follows:
Less than 12 months12 months or moreTotal
Fair
Value		Total
Unrealized
Losses
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
At December 31, 2024
U.S. Treasury$4,915 $(22)$— $— $4,915 $(22)
U.S. government and federal agency obligations— — 401 (7)401 (7)
U.S. government-sponsored enterprises996 (5)1,778 (222)2,774 (227)
Obligations of states and political subdivisions2,791 (163)98,442 (22,917)101,233 (23,080)
Mortgage-backed securities37,759 (563)33,612 (6,115)71,371 (6,678)
Other debt securities4,900 (58)9,101 (723)14,001 (781)
Bank issued trust preferred securities— — 1,249 (237)1,249 (237)
Total$51,361 $(811)$144,583 $(30,221)$195,944 $(31,032)
(in thousands)
At December 31, 2023
      
U.S. Treasury$997 $— $— $— $997 $— 
U.S. government and federal agency obligations— — 427 (19)427 (19)
U.S. government-sponsored enterprises11,995 (8)1,772 (228)13,767 (236)
Obligations of states and political subdivisions1,501 (158)103,283 (19,408)104,784 (19,566)
Mortgage-backed securities2,935 (40)39,793 (6,083)42,728 (6,123)
Other debt securities— — 8,799 (1,026)8,799 (1,026)
Bank issued trust preferred securities— — 1,169 (317)1,169 (317)
Total$17,428 $(206)$155,243 $(27,081)$172,671 $(27,287)
The total available-for-sale portfolio consisted of approximately 398 securities at December 31, 2024. The portfolio included 375 securities having an aggregate fair value of $195.9 million that were in a loss position at December 31, 2024. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $144.6 million at fair value at December 31, 2024. The $31.0 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2024 was caused by interest rate fluctuations.
The decline in fair value is attributable to changes in interest rates and not credit quality. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. The Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities.
The following table presents the gross realized gains and losses from sales and calls of available-for-sale securities, as well as gains and losses on equity securities from fair value adjustments which have been recognized in earnings:
(dollars in thousands)202420232022
Available-for-sale securities:
Gross realized gains$—$—$—
Gross realized losses—(11,562)—
Credit losses recognized———
Other investment securities:
Fair value adjustments, net(4)32(14)
Certificates of deposit:
Gross realized gains———
Gross realized losses—(17)—
Investment securities (losses) gains, net$(4)$(11,547)$(14)
v3.25.1
Premises and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Premises and Equipment Premises and Equipment
A summary of premises and equipment at December 31, 2024 and 2023 is as follows:
(dollars in thousands)20242023
Land and land improvements$9,190 $9,683 
Buildings and improvements36,401 35,195 
Furniture and equipment13,675 13,214 
Operating leases - right of use asset2,796 2,073 
Construction in progress271 2,103 
Total62,333 62,268 
Less accumulated depreciation31,167 30,221 
Premises and equipment, net$31,166 $32,047 
Depreciation expense for the years ended December 31, 2024, 2023, and 2022 was as follows:
(in thousands)202420232022
Depreciation expense$1,650 $2,106 $2,141 
v3.25.1
Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Mortgage Servicing Rights
On January 31, 2024, the Company sold its mortgage servicing rights portfolio and all serviced loans transferred to the new servicer on April 30, 2024.
The table below presents changes in mortgage servicing rights for the years ended December 31, 2024, 2023, and 2022.
(dollars in thousands)202420232022
Balance at beginning of year$1,738 $2,899 $2,659 
Originated mortgage servicing rights— 39 64 
Sale proceeds(1,670)— — 
Changes in fair value:
Due to changes in model inputs and assumptions (1)— (939)479 
Other changes in fair value (2)(68)(261)(303)
Total changes in fair value(68)(1,200)176 
Balance at end of year$— $1,738 $2,899 
(1)The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates.
(2)Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time.
Total changes in fair value are reported in real estate servicing fees, net, reported in non-interest income in the Company's consolidated statements of income. In the fourth quarter of 2023, the Company recognized a $1.1 million mortgage MSR valuation write-down upon accepting a letter of intent to sell the Company's servicing portfolio, which closed during the first quarter of 2024. Prior to the fourth quarter of 2023, valuation assumptions were reviewed with a third party specialist.
The following key data and assumptions were used in estimating the fair value of the Company's mortgage servicing rights as of December 31, 2024 and 2023:
20242023
Weighted average constant prepayment rateNA6.55 %
Weighted average note rateNA3.52 %
Weighted average discount rateNA11.00 %
Weighted average expected life (in years)NA7.1
v3.25.1
Derivative Instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
As part of the Company’s overall interest rate risk management, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments, forward commitments to sell mortgage-backed securities, cash flow hedges and interest rate swap contracts. The notional amount does not represent amounts exchanged by the parties, rather the amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements.

Interest Rate Swap Contracts Not Designated as Hedges
The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. These swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with mirror-image terms. Because of the mirror-image terms of the offsetting contracts, in addition to collateral
provisions which mitigate the impact of non-performance risk, changes in the fair value subsequent to initial recognition have a minimal effect on earnings. These derivative contracts do not qualify for hedge accounting.
The following table reflects the estimated fair value of derivative instruments included in other assets and other liabilities on the consolidated balance sheets along with their respective notional amounts on a gross basis.
As of December 31, 2024
Fair Value
Notional Amount Derivative Assets Derivative Liabilities
Derivatives not designated as hedging instruments
Derivative instruments, interest rate swaps$16,542 $66 $89 
Mortgage derivatives - Interest rate lock commitments— — 
Mortgage derivatives - Forward commitments— — 
Total derivatives not designated as hedging instruments $66 $89 

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income as of December 31, 2024. The Company recognized $0.3 million of other income related to client swaps during the year ended December 31, 2024.
Gain or (Loss) Recognized in Income on Derivative
(dollars in thousands)Location of Gain or (Loss) Recognized in Income on DerivativeFor The Year Ended December 31, 2024
Derivatives Not Designated as Hedging Instruments:
Derivative instruments, interest rate swaps (1)Other non-interest income $(23)
Mortgage derivatives - Interest rate lock commitmentsOther non-interest income / expense(41)
Mortgage derivatives - Forward commitmentsOther non-interest income / expense41 
Total$(23)
(1) Gain (loss) represents net fair value adjustments (including credit related adjustments) for client swaps.


Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision to the effect that, if the Company (either) defaults (or is capable of being declared in default) on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.
Collateral Requirements
The Company has agreements with certain of its derivative counterparties that contain a provision where if the company fails to maintain its status as a well / adequate capitalized institution, then the Company could be required to post additional collateral.

Certain derivative transactions have collateral requirements, both at the inception of the trade, and as the value of each derivative position changes. As of December 31, 2024, the Company had recorded the obligation to return cash collateral of $0.1 million.
As of December 31, 2024, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0.02 million. As of December 31, 2024, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions at December 31, 2024, it could have been required to settle its obligations under the agreements at their termination value of $0.
v3.25.1
Deposits
 12 Months Ended
Dec. 31, 2024
Deposits [Abstract]  
Deposits Deposits
The table below represents the aggregate amount of time deposits with balances that met or exceeded the FDIC insurance limit of $250,000 and brokered deposits as of December 31, 2024 and 2023:
(aggregate amounts in thousands)December 31, 2024December 31, 2023
Time deposits with balances > $250,000$100,383 $108,147 
Brokered deposits$13 $161 
The scheduled maturities of total time deposits at December 31, 2024 were as follows:
(aggregate amounts in thousands)
Due within:
2025$279,190 
202613,356 
20276,080 
20282,885 
2029310 
Thereafter— 
Total$301,821 
v3.25.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
The Company's leases primarily consist of office space and bank branches with remaining lease terms of generally 1 to 10 years. As of December 31, 2024, operating right-of-use (ROU) assets and liabilities were $1.6 million and $1.7 million, respectively. As of December 31, 2024, the weighted-average remaining lease term on these operating leases is approximately 5.7 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.1%.
Operating leases in which the Company is the lessee are recorded as operating lease right-of-use assets and operating lease liabilities. Currently, the Company does not have any finance leases. The ROU assets are included in premises and equipment, net on the consolidated balance sheets.
Operating lease ROU assets represent the Company's right to use an underlying asset during the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company's incremental borrowing rate at the lease commencement date.
Operating lease cost, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income. The operating lease cost was $0.3 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively.
The table below summarizes the maturity of remaining operating lease liabilities:
Lease payments due in:Operating
Lease
(dollars in thousands)
2025$391
2026400
2027327
2028330
2029112
Thereafter326
Total lease payments1,886
Less imputed interest(208)
Total lease liabilities, as reported$1,678
v3.25.1
Borrowings
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Borrowings Borrowings
Federal Home Loan Bank and other borrowings of the Company consisted of the following:
20242023
(dollars in thousands)Maturity
Date		Year End
Balance		Year End
Weighted
Rate		Year End
Balance		Year End
Weighted Rate
FHLB advances2024$— — %$26,000 3.47 %
202540,000 3.37 %30,000 2.89 %
202623,000 2.53 %23,000 2.53 %
20277,500 2.05 %17,500 3.28 %
2028— — %— — %
20292,925 1.91 %— — %
Thereafter8,000 1.41 %10,500 1.61 %
Other
2031$100 4.42 %$— — %
Total
$81,525 $107,000 
Subordinated notes2034$25,774 7.31 %$25,774 8.34 %
203523,712 6.44 %23,712 7.47 %
Total
$49,486 $49,486 
The Bank is a member of the Federal Home Loan Bank of Des Moines (FHLB) and has access to term financing from the FHLB. These borrowings, which are all fixed rate, are secured under a blanket agreement, which assigns all investment in FHLB stock, as well as qualifying first mortgage loans as collateral to secure amounts borrowed by the Bank. As of December 31, 2024, the Bank had $81.4 million in outstanding borrowings with the FHLB. Based upon the collateral pledged to the FHLB at December 31, 2024, the Bank could borrow up to an additional $187.3 million under the agreement.
On March 17, 2005, Exchange Statutory Trust II, a business trust and subsidiary of the Company, issued $23.0 million of 30-year floating rate Trust Preferred Securities (TPS) to a TPS Pool. The floating rate is equal to the three-month CME
Term SOFR rate plus 1.83% and reprices quarterly (6.44% at December 31, 2024). The TPS can be prepaid without penalty at any time after five years from the issuance date.
The TPS represent preferred interests in the trust. The Company invested approximately $0.7 million in common interests in the trust and the purchaser in the private placement purchased $23.0 million in preferred interests. The proceeds were used by the trust to purchase from the Company its 30-year subordinated debentures whose terms mirror those stated above for the TPS. The debentures are guaranteed by the Company pursuant to a subordinated guarantee. Distributions on the TPS are payable quarterly on March 17, June 17, September 17, and December 17 of each year that the TPS are outstanding. The trustee for the TPS holders is U.S. Bank, N.A. The trustee does not have the power to take enforcement action in the event of a default under the TPS for five years from the date of default. In the event of default, however, the Company would be precluded from paying dividends until the default is cured.
On March 17, 2004, Exchange Statutory Trust I, a business trust and subsidiary of the Company issued $25.0 million of floating rate TPS to a TPS Pool. The floating rate is equal to the three-month CME Term SOFR rate plus 2.70% and reprices quarterly (7.31% at December 31, 2024). The TPS are fully, irrevocably, and unconditionally guaranteed on a subordinated basis by the Company.
The TPS represent preferred interests in the trust. The Company invested approximately $0.8 million in common interests in the trust and the purchaser in the private placement purchased $25.0 million in preferred interests. The proceeds of the TPS were invested in junior subordinated debentures of the Company. Distributions on the TPS are payable quarterly on March 17, June 17, September 17, and December 17 of each year that the TPS are outstanding. The TPS mature on March 17, 2034. That maturity date may be shortened if certain conditions are met.
The Exchange Statutory Trusts are not consolidated in the Company's financial statements. Accordingly, the Company does not report the securities issued by the Exchange Statutory Trusts as liabilities, and instead reports the subordinated notes issued by the Company and held by the Exchange Statutory Trusts as liabilities. The amount of the subordinated notes as of December 31, 2024 and 2023 was $49.5 million, respectively. The Company has recorded the investments in the common securities issued by the Exchange Statutory Trusts aggregating $1.2 million as of both December 31, 2024 and 2023, respectively, and the corresponding obligations under the subordinated notes, as well as the interest income and interest expense on such investments and obligations in its consolidated financial statements.
v3.25.1
Income Tax Expense (Benefit)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax Expense (Benefit) Income Tax Expense (Benefit)
The composition of income tax expense (benefit) for the years ended December 31, 2024, 2023, and 2022 was as follows:
(dollars in thousands)202420232022
Current:
Federal$3,070 $793 $4,591 
State— 67 (134)
Total current3,070 860 4,457 
Deferred:
Federal1,032 (1,384)(119)
State— — — 
Total deferred1,032 (1,384)(119)
Total income tax expense (benefit)$4,102 $(524)$4,338 
Applicable income tax expense (benefit) for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2024, 2023, and 2022 are as follows:
202420232022
(dollars in thousands)Amount%Amount%Amount%
Income before provision for income tax (benefit)$22,358 $432 $25,089 
Tax at statutory federal income tax rate$4,695 21.00 %$91 21.00 %$5,269 21.00 %
Tax-exempt income, net(567)(2.54)(509)(117.88)(821)(3.27)
State income tax expense (benefit), net of federal tax expense (benefit)— — 53 12.25 (106)(0.42)
Other, net(26)(0.11)(159)(36.86)(4)(0.02)
Provision for income tax (benefit) expense$4,102 18.35 %$(524)(121.49)%$4,338 17.29 %
Income taxes (benefit) as a percentage of earnings before income taxes (benefit) as reported in the consolidated financial statements were 18.3% for the year ended December 31, 2024 compared to (121.5)% and 17.3% for the years ended December 31, 2023 and 2022, respectively. The effective tax rate for each of years ended December 31, 2024, 2023, and 2022, respectively, is lower than the U.S. federal statutory rate of 21% primarily due to tax-free revenues.
The components of deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023 were as follows:
(dollars in thousands)20242023
Deferred tax assets:
Allowance for credit losses
$4,589 $4,669 
Securities6,428 5,653 
Other real estate owned421 1,250 
Deferred loan fees450 437 
Lease liability 352 255 
Accrued / deferred compensation763 835 
Other497 592 
Total deferred tax assets$13,500 $13,691 
Deferred tax liabilities:
Premises and equipment$515 $319 
Mortgage servicing rights— 365 
Deferred loan costs395 444 
Pension2,424 1,180 
Right-of-use asset343 246 
Prepaid expenses233 187 
Other61 38 
Total deferred tax liabilities3,971 2,779 
Net deferred tax assets$9,529 $10,912 
The deferred tax asset associated with the unrealized losses on securities is mainly a result of changes in interest rates, and the unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. The issuers of the securities are of high credit quality and all principal amounts are expected to
be paid when the securities mature. The Company does not intend to sell and it is more likely than not that the Company will not be required to sell the securities prior to their anticipated recovery.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning initiatives in making this assessment. In management's opinion, the Company will more likely than not realize the benefits of its deferred tax assets and, therefore, has not established a valuation allowance against its deferred tax assets as of December 31, 2024. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income of the appropriate character over the periods in which the deferred tax assets are deductible.
The Company follows ASC Topic 740, Income Taxes, which addresses the accounting for uncertain tax positions. For each of the years ended December 31, 2024 and 2023, respectively, the Company did not have any uncertain tax provisions, and did not record any related tax liabilities.
v3.25.1
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss) Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The following table summarizes the change in the components of the Company's accumulated other comprehensive income (loss) for the years ended December 31, as indicated.
(dollars in thousands)Unrealized
Income (Loss)
on Securities (1)		Unrecognized Net
Pension and
Postretirement
Costs (2)		Accumulated
Other
Comprehensive
Income (Loss)
Balance, December 31, 2022
$(36,657)$4,943 $(31,714)
Other comprehensive income (loss), before reclassifications10,087(640)9,447
Amounts reclassified from accumulated other comprehensive income (loss)9,1484,129 13,277 
Other comprehensive income, before tax19,2353,489 22,724
Income tax expense(4,039)(733)(4,772)
Other comprehensive income, net of tax15,1962,756 17,952
Balance, December 31, 2023
$(21,461)$7,699 $(13,762)
Other comprehensive income (loss), before reclassifications(3,740)(690)(4,430)
Amounts reclassified from accumulated other comprehensive income (loss)— 6,1006,100
Other comprehensive income (loss), before tax(3,740)5,4101,670
Income tax (expense) benefit785 (1,136)(351)
Other comprehensive income (loss), net of tax(2,955)4,2741,319
Balance, December 31, 2024
$(24,416)$11,973 $(12,443)
(1)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in gains (losses) on sale of investment securities in the consolidated statements of income.
(2)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension (income) cost. See Note 14.
Shares issued and outstanding
The following table shows the changes in shares of common stock issues and common stock held as treasury shares for the years ended December 31, 2023, 2023, and 2022.
Common Stock IssuedTreasury Stock HeldCommon Stock Outstanding
Balance at, December 31, 2021$7,023,821 $(406,846)$6,616,975 
Stock dividend260,330—260,330
Repurchase of common stock—(108,724)(108,724)
Balance at, December 31, 2022$7,284,151 $(515,570)$6,768,581 
Stock dividend270,742—270,742
Balance at, December 31, 2023$7,554,893 $(515,570)$7,039,323 
Restricted share unit activity—5,9945,994
Repurchase of common stock—(56,692)(56,692)
Balance at, December 31, 2024$7,554,893 $(566,268)$6,988,625 
Stock Dividend On July 1, 2023, the Company paid a stock dividend of four percent to common shareholders of record at the close of business on June 15, 2023. For all periods presented, share information, including basic and diluted earnings per share, has been adjusted retroactively to reflect this change.
Repurchase Program
Pursuant to the Company's 2019 Repurchase Plan, management is given discretion to determine the number and pricing of the shares to be purchased, as well as the timing of any such purchases. The Company repurchased 56,692 common shares under the repurchase plan during the year end December 31, 2024 at an average cost of $19.51 per share totaling $1.1 million. As of December 31, 2024, $3.9 million remained available for share repurchase pursuant to the plan.
v3.25.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Equity-Based Compensation Plan
At the 2023 Annual Meeting of Shareholders, held on June 6, 2023, the Company's shareholders approved the Hawthorn Bancshares, Inc. Equity Incentive Plan (the "Equity Plan"), which was previously approved by the Company's Board of Directors (the "Board"). The purpose of the Equity Plan is to allow eligible participants of the Company and its subsidiaries to acquire or increase a proprietary and vested interest in the growth and performance of the Company. The Equity Plan is also designed to assist the Company in attracting and retaining selected service providers by providing them with the opportunity to participate in the success and profitability of the Company. The terms of the Equity Plan provide for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, other equity-based awards and cash awards. Subject to certain adjustments, the maximum number of shares of the Company's common stock that may be delivered pursuant to awards under the Equity Plan is 203,000 shares. Eligible participants under the Equity Plan include all employees, non-employee directors and consultants of the Company or its subsidiaries. The Equity Plan will be administered by the Board or a committee thereof.
The Compensation Committee adopted a form of restricted stock unit award agreement (service-based vesting). The Company issues restricted share units ("RSUs") to provide additional incentives to key officers, employees, and non-
employee directors. Awards are granted as determined by the Compensation Committee. The service-based RSUs vest, and shares of common stock are issued, in equal installments on the first, second, and third anniversaries of the date of grant.
The following table summarizes the status of the Company's RSUs for the year ended December 31, 2024:
RSUs
20242023
(dollars in thousands, except per share amounts)QuantityWeighted-Average Grant Date Fair Value Per shareQuantityWeighted-Average Grant Date Fair Value Per share
Non-vested beginning of year18,277 $20.63 — $— 
Granted23,151 24.68 18,277 20.63 
Vested6,092 23.81 — — 
Forfeited— — — — 
Non-vested end of year35,336 $22.84 18,277 $20.63 
The fair value of the RSUs units is determined using the Company’s stock price on the date of grant. Total share-based compensation expense recognized for these RSUs was $184,000 and $42,000 for the years ended December 31, 2024 and 2023, respectively. No share-based compensation expense was recognized in the year ended December 31, 2022.
At December 31, 2024 there was $0.7 million of total unrecognized compensation expense related to RSUs that is expected to be recognized over a weighted-average period of 2.4 years.
v3.25.1
Retirement Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
Profit-sharing Plan
The Company's profit-sharing plan includes a matching 401(k) portion, in which the Company matches the first 3% of eligible employee contributions. The Company made annual contributions for the discretionary portion in an amount up to 6% of income before income taxes and before contributions to the profit-sharing and pension plans for all participants, limited to the maximum amount deductible for federal income tax purposes, for each of the years shown. In addition, employees were able to make additional tax-deferred contributions. Total expense recorded for the Company match was $0.5 million, $0.6 million and $0.5 million for the years ended December 31, 2024, 2023, and 2022, respectively. The employer discretionary profit sharing contribution made to the 401(k) plan was $0.8 million, $0.6 million, and $1.0 million for plan years 2024, 2023 and 2022, respectively.
Other Plans
On November 7, 2018, the Board of Directors of the Company adopted a supplemental executive retirement plan (SERP), effective on January 1, 2018. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment or death.
As of December 31, 2024, the accrued liability under the plan was $1.7 million and the expense was $0.1 million, $0.04 million, and $0.4 million for the years ended December 31, 2024 and 2023, and 2022, respectively, is recognized over the required service period. For the year ended December 31, 2024 a $0.1 million distribution was paid.
Pension
The Company provides a noncontributory defined benefit pension plan for all full-time and eligible employees. Beginning January 1, 2018 and for all retrospective periods presented, the Company adopted the guidance under ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Under the new guidance, only the service cost component of the net periodic benefit cost is reported in the same income statement line item as salaries and benefits, and the remaining components are reported as other non-interest income. An employer is required to recognize the funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to provide for current service and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. The Company did not elect to make a pension contribution in 2024.
Effective July 1, 2017, the Company amended the pension plan to effectuate a “soft freeze” such that no individual hired (or rehired in the case of a former employee) by the Company after September 30, 2017, whether or not such individual is or was a vested member in the plan, will be eligible to be an active member and be entitled to accrue any benefits under the plan.
Obligations and Funded Status at December 31,
(dollars in thousands)20242023
Change in projected benefit obligation:
Balance, January 1$30,623 $29,131 
Service cost947 946 
Interest cost1,477 1,428 
Actuarial (gain) loss *(3,147)49 
Benefits paid(1,113)(931)
Balance, December 31,
$28,787 $30,623 
Change in plan assets:
Fair value, January 1$36,242 $30,932 
Actual return on plan assets5,348 6,350 
Employer contribution— — 
Expenses paid(145)(109)
Benefits paid(1,113)(931)
Fair value, December 31,
$40,332 $36,242 
Funded status at end of year$11,544 $5,619 
Accumulated benefit obligation$24,954 $25,897 
Amounts recognized in the consolidated balance sheet consist of the following:
(in thousands)20242023
Non-current assets$11,544 $5,619 
Net asset at end of year$11,544 $5,619 
*The actuarial gain in 2024 was primarily driven by the increase in the year-over-year discount rate, which resulted in a gain for the plan.
Components of Net Pension (Income) Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
The following items are components of net pension (income) cost for the years ended December 31, as indicated:
(dollars in thousands)202420232022
Service cost - benefits earned during the year$947 $946 $1,491 
Interest costs on projected benefit obligations (a)1,477 1,428 1,174 
Expected return on plan assets (a)(2,358)(2,178)(2,282)
Expected administrative expenses109 115 118 
Amortization of unrecognized net (gain) loss (a)(690)(640)— 
Net periodic pension (income) cost$(515)$(329)$501 
(a)The components of net periodic pension (income) cost other than the service cost component are included in other non-interest income.
Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining service period of active participants in the Plans. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits.
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) at December 31, 2024 and 2023 are shown below, including amounts recognized in other comprehensive income during the periods. All amounts are shown on a pre-tax basis.
(dollars in thousands)20242023
Net accumulated actuarial net gain$15,155 $9,745 
Accumulated other comprehensive gain15,155 9,745 
Net periodic benefit cost in excess of cumulative employer contributions(3,611)(4,126)
Net amount recognized at December 31, balance sheet
$11,544 $5,619 
Net actuarial gain arising during period$6,100 $4,129 
Amortization of net actuarial gain (690)(640)
Total recognized in other comprehensive income (loss)$5,410 $3,489 
Total recognized in net periodic pension cost and other comprehensive income (loss)$(5,925)$(3,818)
Assumptions utilized to determine benefit obligations as of December 31, 2024, 2023, and 2022 and to determine pension expense for the years then ended are as follows:
202420232022
Determination of benefit obligation at year end:
Discount rate5.65 %4.95 %5.10 %
Annual rate of compensation increase4.50 %4.50 %4.50 %
Determination of pension expense for year ended:
Discount rate for the service cost4.95 %5.10 %3.10 %
Annual rate of compensation increase4.50 %4.50 %4.50 %
Expected long-term rate of return on plan assets6.75 %6.75 %6.75 %
The assumed overall expected long-term rate of return on pension plan assets used in calculating 2024 pension expense was 6.75%. Determination of the plan's rate of return is based upon historical returns for equities and fixed income indexes. During the past five years, the Company's plan assets have experienced the following annual returns:
(dollars in thousands)20242023202220212020
Plan Assets:
Actual rate of return15.9%21.1%(17.0)%22.1%19.7%
The rate used in plan calculations may be adjusted by management for current trends in the economic environment. With a traditional investment mix of over half of the plan's investments in equities, the actual return for any one plan year may fluctuate significantly with changes in the stock market. Primarily due to an increase in the discount rate used in the actuarial calculation of plan income, the Company expects to incur $0.8 million of income in 2025 compared to $0.5 million of income in 2024.
Plan Assets
The investment policy of the pension plan is designed for growth in value while minimizing risk to the overall portfolio. The Company diversifies the assets through investments in domestic fixed income securities and domestic and international equity securities. The assets are readily marketable and can be sold to fund benefit payment obligations as they become payable. The Company regularly reviews its policies on the investment mix and may make changes depending on economic conditions and perceived investment mix.
The fair value of the Company's pension plan assets at December 31, 2024 and 2023 by asset category was as follows:
Fair Value Measurements
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2024
Cash equivalents$3,630 $3,630 $— $— 
U.S government agency obligations7,536 — 7,536 — 
Corporate bonds975 — 975 — 
Mutual funds *
28,191 28,191 — — 
Total$40,332 $31,821 $8,511 $— 
December 31, 2023
Cash equivalents$1,521 $1,521 $— $— 
U.S government agency obligations2,587 — 2,587 — 
Mutual funds *
32,134 32,134 — — 
Total$36,242 $33,655 $2,587 $— 
*Mutual funds consist of equity securities
The following future benefit payments are expected to be paid:
YearPension
benefits
(dollars in thousands)
2025$1,124 
20261,208 
20271,345 
20281,466 
20291,602 
Thereafter10,036 
v3.25.1
Earnings per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
The following table displays a reconciliation of the information used in calculating basic and diluted earnings per common share for the years ended December 31, 2024, 2023, and 2022, which have been restated for stock dividends. Diluted earnings per common share incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock.
(dollars in thousands, except per share data)202420232022
Net income available to common shareholders$18,256 $956 $20,751 
Weighted average common shares outstanding7,000,480 7,039,323 7,063,054 
Effect of dilutive equity-based awards— — — 
Weighted average dilutive common shares outstanding7,000,480 7,039,323 7,063,054 
Basic earnings per share$2.61 $0.14 $2.94 
Diluted earnings per share$2.61 $0.14 $2.94 
The dilutive effect of restricted share units is reflected in diluted earnings per share unless the impact is anti-dilutive, by application of the treasury stock method.
v3.25.1
Capital Requirements
 12 Months Ended
Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Capital Requirements Capital Requirements
The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors.

The Basel III regulatory capital reforms adopted by U.S. federal regulatory authorities (the "Basel III Capital Rules"), among other things, (i) establish the capital measure called "Common Equity Tier 1" ("CET1"), (ii) specify that Tier 1 capital consists of CET1 and "Additional Tier 1 Capital" instruments meeting stated requirements, (iii) require that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) define the scope of the deductions/adjustments to the capital measures.

Additionally, the Basel III Capital Rules require that the Company maintain a 2.50% capital conservation buffer with respect to each of CET1, Tier 1 and total capital to risk-weighted assets, which provides for capital levels that exceed the minimum risk-based capital adequacy requirements. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of CET1, Tier 1 and total capital to risk-weighted assets, and of Tier 1 capital to average assets, each as defined in the regulations. Management believes, as of December 31, 2024, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

Financial institutions are categorized as well capitalized or adequately capitalized, based on minimum total risk-based, Tier 1 risk-based, CET1 and Tier 1 leverage ratios. As shown in the table below, the Company’s capital ratios exceeded the regulatory definition of adequately capitalized as of December 31, 2024 and 2023. Based upon the information in its most recently filed call report, the Bank met the capital ratios necessary to be well-capitalized. The regulatory authorities can apply changes in classification of assets and such changes may retroactively subject the Company to changes in capital ratios. Any such change could reduce one or more capital ratios below well-capitalized status. In addition, a change may result in imposition of additional assessments by the FDIC or could result in regulatory actions that could have a material effect on our condition and results of operations. In addition, bank holding companies generally are required to maintain a Tier 1 leverage ratio of at least 4%.
Because the Bank had less than $15 billion in total consolidated assets as of December 31, 2009, the Company is allowed to continue to classifying its trust preferred securities, all of which were issued prior to May 19, 2010, as Tier 1 capital.

Under the Basel III requirements, at December 31, 2024 and December 31, 2023, the Company met all capital adequacy requirements and had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as shown in the following table as of years indicated:
Actual Minimum Capital
Required - Basel III
Fully Phased-In 		Required to be
Considered Well-
Capitalized
(dollars in thousands)Amount Ratio Amount Ratio Amount Ratio
December 31, 2024
Total Capital (to risk-weighted assets):
Company$232,400 14.79 %$164,953 10.50 %$— N.A%
Bank219,410 14.10 %163,365 10.50 %155,586 10.00 %
Tier 1 Capital (to risk-weighted assets):
Company$212,780 13.54 %$133,533 8.50 %$— N.A%
Bank199,960 12.85 %132,248 8.50 %124,469 8.00 %
Common Equity Tier 1 Capital (to risk-weighted assets):
Company$164,780 10.49 %$109,968 7.00 %$— N.A%
Bank199,960 12.85 %108,910 7.00 %101,131 6.50 %
Tier 1 leverage ratio (to adjusted average assets):
Company$212,780 11.46 %$74,261 4.00 %$— N.A%
Bank199,960 10.83 %73,847 4.00 %92,309 5.00 %
December 31, 2023
Total Capital (to risk-weighted assets):
Company$221,586 13.99 %$166,266 10.50 %$— N.A%
Bank219,043 13.91 %165,369 10.50 %157,494 10.00 %
Tier 1 Capital (to risk-weighted assets):
Company$199,395 12.59 %$134,596 8.50 %$— N.A%
Bank199,490 12.67 %133,870 8.50 %125,995 8.00 %
Common Equity Tier 1 Capital (to risk-weighted assets)
Company$154,033 9.73 %$110,844 7.00 %$— N.A%
Bank199,490 12.67 %110,246 7.00 %102,371 6.50 %
Tier 1 leverage ratio:
Company$199,395 10.29 %$77,492 4.00 %$— N.A%
Bank199,490 10.31 %77,411 4.00 %96,763 5.00 %
v3.25.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date.
Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under U.S. GAAP uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows. During the year ended December 31, 2024 there were no transfers into or out of Levels 1-3.
The fair value hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:
Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value.
Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3 – Inputs are unobservable inputs for the asset or liability and significant to the fair value. These may be internally developed using the Company's best information and assumptions that a market participant would consider.
In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Nonfinancial assets measured at fair value on a nonrecurring basis would include foreclosed real estate, long-lived assets, and core deposit intangible assets, which are reviewed when circumstances or other events indicate that impairment may have occurred.
Valuation Methods for Assets and Liabilities Measured at Fair Value on a Recurring Basis
Following is a description of the Company's valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis:
Available-for-Sale Securities
The fair value measurements of the Company’s investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source by management each quarter for reasonableness.
Other Investment Securities
Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in FHLB stock and MIB bankers bank stock, that do not have readily determinable fair values, are required for membership in those organizations. Equity securities that are not actively traded are classified in Level 2.
Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment. The Company uses Level 1 inputs to value equity securities that are traded in active markets.
Loans Held for Sale
The fair value of the committed in forward sale agreements loans is the price at which they could be sold in the principal market at the measurement date, therefore the Company classifies as level 2.
Derivative Assets and Liabilities
Derivative assets and liabilities include interest rate lock commitments ("IRLCs") and forward sale commitments. The fair values of IRLCs and forward sale commitments are determined using readily observable market data such as interest rates, prices, volatility factors, and customer credit-related adjustments. For IRLCs, the fair value is subject to the anticipated loan funding probability (pull-through rate), which is considered an unobservable factor. Factors that affect pull-through rates include origination channel, current mortgage interest rates in the market versus the interest rate incorporated in the IRLC, the purpose of the mortgage, stage of completion of the underlying application and underwriting process, and the time remaining until the IRLC expires. The Company classifies IRLCs as Level 3 due to the unobservable input of pull-through rates. As of September 30, 2024, the Company elected not to record the derivatives associated with IRLC due to the reduced volume of loans sold to the secondary market and therefore immateriality of the derivative.
Fair values of interest rate swaps are determined using a discounted cash flow analysis on the expected cash flows of each derivative, which also includes a credit value adjustment for client swaps. An independent third-party valuation is used to verify and confirm these values, which are classified as Level 2 within the fair value hierarchy.
Mortgage Servicing Rights (MSRs)
The Company sold its servicing portfolio on January 31, 2024. In prior periods, the fair value of MSRs is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The valuation models estimate the present value of estimated future net servicing income. The Company classifies its MSRs as Level 3.
Fair Value Measurements
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2024
Assets:
U.S. Treasury$4,915 $4,915 $— $— 
U.S. government and federal agency obligations401 — 401 — 
U.S. government-sponsored enterprises12,804 — 12,804 — 
Obligations of states and political subdivisions102,486 — 102,486 — 
Mortgage-backed securities78,110 — 78,110 — 
Other debt securities18,687 — 18,687 — 
Bank-issued trust preferred securities1,249 — 1,249 — 
Equity securities74 74 — — 
Derivative instruments, interest rate swaps66 — 66 — 
Total$218,792 $4,989 $213,803 $— 
Liabilities:
Derivative instruments, interest rate swaps$89 $— $89 $— 
Total$89 $— $89 $— 
December 31, 2023
Assets:
U.S. Treasury$1,978 $1,978 $— $— 
U.S. government and federal agency obligations427 — 427 — 
U.S. government-sponsored enterprises21,822 — 21,822 — 
Obligations of states and political subdivisions106,885 — 106,885 — 
Mortgage-backed securities45,640 — 45,640 — 
Other debt securities10,821 — 10,821 — 
Bank-issued trust preferred securities1,169 — 1,169 — 
Equity securities78 78 — — 
Interest rate lock commitments43 — — 43 
Loans held for sale3,884 — 3,884 — 
Mortgage servicing rights1,738 — — 1,738 
Total$194,485 $2,056 $190,648 $1,781 
Liabilities:
Interest rate lock commitments$2 $— $— $2 
Forward sale commitments41 — 41 — 
Total$43 $— $41 $2 
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
(dollars in thousands)
Mortgage Servicing Rights
Interest Rate Lock Commitments
Balance at December 31, 2022
$2,899 $2 
Total (losses) or gains (realized/unrealized):
Included in earnings(1,200)(35)
Included in other comprehensive income— — 
Purchases— — 
Sales— (169)
Issues39 243 
Settlements— — 
Balance at December 31, 2023
$1,738 $41 
Total (losses) or gains (realized/unrealized):
Included in earnings(68)(11)
Included in other comprehensive income— — 
Purchases— — 
Sales(1,670)(86)
Issues— 56 
Settlements— — 
Balance at December 31, 2024
$— $— 
Valuation methods for instruments measured at fair value on a nonrecurring basis
Following is a description of the Company's valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis:
Collateral Dependent Loans
While the overall loan portfolio is not carried at fair value, the Company periodically records nonrecurring adjustments to the carrying value of impaired loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. In determining the fair value of real estate collateral, the Company relies on external and internal appraisals of property values depending on the size and complexity of the real estate collateral. The appraisals may be discounted based on the Company's historical knowledge, changes in market conditions from the time of appraisal, or other information available. The Company maintains staff trained to perform in-house evaluations and also to review third-party appraisal reports for reasonableness. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists. Fair values of all loan collateral are regularly reviewed by executive loan committee. Because many of these inputs are not observable, the measurements are classified as Level 3.
Other Real Estate Owned and Repossessed Assets
Other real estate owned ("OREO") and repossessed assets consist of loan collateral repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos,
manufactured homes, and construction equipment. Subsequent to foreclosure, these assets are initially carried at fair value of the collateral less estimated selling costs. Fair value, when recorded, is generally based upon appraisals by approved, independent state certified appraisers. Like impaired loans, appraisals on OREO may be discounted based on the Company's historical knowledge, changes in market conditions from the time of appraisal or other information available. During the holding period, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. Because many of these inputs are not observable, the measurements are classified as Level 3.
Fair Value Measurements Using
(dollars in thousands)Total
Fair Value		Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total Gains
(Losses)*
December 31, 2024
Assets:
Collateral dependent loans:
Commercial, financial, & agricultural$641 $— $— $641 $(1,931)
Real estate construction - residential260 — — 260 — 
Real estate mortgage - residential— — — — (50)
Real estate mortgage - commercial65 — — 65 (436)
Total$966 $— $— $966 $(2,417)
Other real estate and repossessed assets$546 $— $— $546 $875 
December 31, 2023
Assets:
Collateral dependent loans:
Commercial, financial, & agricultural$921 $— $— $921 $(76)
Real estate construction - residential268 — — 268 — 
Real estate mortgage - residential27 — — 27 (88)
Real estate mortgage - commercial$2,369 $— $— $2,369 $(32)
Total$3,585 $— $— $3,585 $(196)
Other real estate and repossessed assets$1,744 $— $— $1,744 $(4,431)
*Total gains (losses) reported for other real estate owned and repossessed assets includes charge-offs, valuation write-downs, and net losses taken during the periods reported.
v3.25.1
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
This summary excludes certain financial assets and liabilities for which carrying value approximates fair value and financial instruments that are recorded at fair value on a recurring basis disclosed above. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value:
Loans
Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, and consumer. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans, or exit price, is estimated by using the future value of discounted cash flows using comparable market rates for similar types of loan products and adjusted for market factors. The
discount rates used are estimated using comparable market rates for similar types of loan products adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments.
Federal Funds Sold, Cash, and Due from Banks
The carrying amounts of short-term federal funds sold and securities purchased under agreements to resell, interest-earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold and securities purchased under agreements to resell classified as short-term generally mature in 90 days or less.
Certificates of Deposit in Other Banks
Certificates of deposit are other investments made by the Company with other financial institutions that are carried at cost; which is equal to fair value.
Accrued Interest Receivable and Payable
For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments.
Deposits
The fair value of deposits with no stated maturity, such as non-interest-bearing demand, Negotiable Order of Withdrawal accounts, savings accounts, and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.
Federal Funds Purchased and Securities Sold under Agreements to Repurchase
For federal funds purchased and securities sold under agreements to repurchase, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period.
Subordinated Notes and Other Borrowings
The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities.
A summary of the carrying amounts and fair values of the Company's financial instruments at December 31, 2024 and 2023 is as follows:
December 31, 2024
Fair Value Measurements
December 31, 2024Quoted Prices
in Active
Markets for
Identical		Other
Observable		Net
Significant
Unobservable
(dollars in thousands)Carrying
amount		Fair
value		Assets
(Level 1)		Inputs
(Level 2)		Inputs
(Level 3)
Assets:
Cash and due from banks$23,668 $23,668 $23,668 $— $— 
Federal funds sold and overnight interest-bearing deposits27,326 27,326 27,326 — — 
Certificates of deposit in other banks1,000 1,000 1,000 — — 
Other investment securities5,149 5,149 74 5,075 — 
Loans, net1,444,116 1,380,252 — — 1,380,252 
Accrued interest receivable8,221 8,221 8,221 — — 
Liabilities:
Deposits:
Non-interest bearing demand$385,022 $385,022 $385,022 $— $— 
Savings, interest checking and money market846,339 846,339 846,339 — — 
Time deposits301,821 300,386 — — 300,386 
FHLB advances and other borrowings81,525 81,585 — 81,585 — 
Subordinated notes49,486 41,602 — 41,602 — 
Accrued interest payable1,754 1,754 1,754 — — 
December 31, 2023
Fair Value Measurements
December 31, 2023Quoted Prices
in Active
Markets for
Identical		Other
Observable		Net
Significant
Unobservable
(dollars in thousands)Carrying
amount		Fair
value		Assets
(Level 1)		Inputs
(Level 2)		Inputs
(Level 3)
Assets:
Cash and due from banks$15,675 $15,675 $15,675 $— $— 
Federal funds sold and overnight interest-bearing deposits77,775 77,775 77,775 — — 
Other investment securities6,300 6,300 78 6,222 — 
Loans, net1,515,403 1,364,533 — — 1,364,533 
Loans held for sale3,884 3,884 — 3,884 — 
Accrued interest receivable8,661 8,661 8,661 — — 
Liabilities:
Deposits:
Non-interest bearing demand$402,241 $402,241 $402,241 $— $— 
Savings, interest checking and money market846,452 846,452 846,452 — — 
Time deposits322,151 319,929 — — 319,929 
FHLB advances and other borrowings107,000 107,245 — 107,245 — 
Subordinated notes49,486 38,939 — 38,939 — 
Accrued interest payable1,772 1,772 1,772 — — 
Off-Balance-Sheet Financial Instruments
The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates.
Limitations
The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates.
v3.25.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
The Company issues financial instruments with off-balance-sheet risk in the normal course of business in meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.
The Company’s extent of involvement and maximum potential exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets.
The allowance for credit losses associated with unfunded commitments and letters of credit is recorded within other liabilities on the consolidated balance sheets. At December 31, 2024, the allowance for credit losses for unfunded commitments was $0.9 million.
The contractual amount of off-balance-sheet financial instruments as of December 31, 2024 and 2023 is as follows:
(dollars in thousands)20242023
Commitments to extend credit$305,811 $286,939 
Interest rate lock commitments— 3,694 
Forward sale commitments— 3,779 
Standby letters of credit141,807 111,631 
Total$447,618 $406,043 
Commitments
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments and letters of credit are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, furniture and equipment, and real estate.
The Company has two types of commitments related to mortgage loans held for sale: interest rate lock commitments and forward loan sale commitments. Interest rate lock commitments are commitments to extend credit to a customer that has an interest rate lock and are considered derivative instruments. As of December 31, 2024, the Company elected not to record the derivatives associated with IRLCs due to the reduced volume of loans sold to the secondary market.
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. These standby letters of credit are primarily issued to support contractual obligations of the Company's customers. The approximate remaining term of standby letters of credit range from one month to five years at December 31, 2024.
Pending Litigation
The Company and its subsidiaries are defendants in various legal actions incidental to the Company's past and current business activities. Based on the Company's analysis, and considering the inherent uncertainties associated with litigation, management does not believe that it is reasonably possible that these legal actions will materially adversely affect the Company's consolidated financial condition or results of operations in the near term. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Some legal matters, which are at early stages in the legal process, have not yet progressed to the point where a loss amount can be estimated.
v3.25.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company determines its operating segments based on how the chief operating decision maker (CODM) views and analyzes each segment’s operations, performance and allocates resources. The Chief Executive Officer, is the CODM. The CODM reviews the actual net income compared to budgeted net income on a monthly basis to evaluate segment performance, make decisions, and determine where to deploy capital. This analysis is also used for benchmarking performance against the Company's peers.
For the years ended December 31, 2024, 2023, and 2022, the Company had one aggregated reporting segment, Hawthorn Bank. The Bank is composed of operations from providing a broad range of banking products and services located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area.
The table below highlights the Company’s revenues, expenses and net income (loss) for each reportable segment and is reconciled to net income (loss) on a consolidated basis for the years ended December 31, 2024, 2023, and 2022 was as follows:
(dollars in thousands)Hawthorn BankNon-BanksTotal
Year ended December 31, 2024
Operating revenue
Interest income$95,234 $117 $95,351 
Interest expense32,859 3,899 36,758 
Net interest income$62,375 $(3,782)$58,593 
Provision for credit losses1,027 — 1,027 
Operating expenses
Salaries and employee benefits$25,238 1,340 26,578 
Occupancy, furniture and equipment expense4,555 — 4,555 
Processing, network, and bank card expense5,530 — 5,530 
Legal, examination, and professional fees2,273 335 2,608 
Depreciation and amortization1,715 — 1,715 
Other7,723 815 8,538 
Total operating expenses$47,034 $2,490 $49,524 
Other
Non-interest income13,382 938 14,320 
Investment securities losses, net(4)— (4)
Income taxes5,827 (1,725)4,102 
Net income$21,865 $(3,609)$18,256 
Segment assets$1,812,168 $13,017 $1,825,185 
(dollars in thousands)Hawthorn BankNon-BanksTotal
Year ended December 31, 2023
Operating revenue
Interest income$91,743 $225 $91,968 
Interest expense29,052 3,774 32,826 
Net interest income$62,691 $(3,549)$59,142 
Provision for credit losses2,340 — 2,340 
Operating expenses
Salaries and employee benefits$27,830 1,141 28,971 
Occupancy, furniture and equipment expense4,040 1 4,041 
Processing, network, and bank card expense5,151 — 5,151 
Legal, examination, and professional fees2,006 502 2,508 
Depreciation and amortization2,214 — 2,214 
Other9,761 (287)9,474 
Total operating expenses$51,002 $1,357 $52,359 
Other
Non-interest income7,416 120 7,536 
Investment securities losses, net(11,500)(47)(11,547)
Income taxes698 (1,222)(524)
Net income$4,567 $(3,611)$956 
Segment assets$1,867,686 $7,664 $1,875,350 
(dollars in thousands)Hawthorn BankNon-BanksTotal
Year ended December 31, 2022
Operating revenue
Interest income$69,155 $101 $69,256 
Interest expense8,421 2,072 10,493 
Net interest income$60,734 $(1,971)$58,763 
Provision for credit losses(900)— (900)
Operating expenses
Salaries and employee benefits$25,077 1,981 27,058 
Occupancy, furniture and equipment expense3,931 (1)3,930 
Processing, network, and bank card expense4,788 — 4,788 
Legal, examination, and professional fees1,318 312 1,630 
Depreciation and amortization2,299 — 2,299 
Other9,428 (595)8,833 
Total operating expenses$46,841 $1,697 $48,538 
Other
Non-interest income13,147 831 13,978 
Investment securities losses, net(14)— (14)
Income taxes5,193 (855)4,338 
Net income$22,733 $(1,982)$20,751 
Segment assets$1,913,990 $9,550 $1,923,540 
v3.25.1
Condensed Financial Information of the Parent Company Only
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of the Parent Company Only Condensed Financial Information of the Parent Company Only
Following are the condensed financial statements of Hawthorn Bancshares, Inc. (Parent only) as of and for the years indicated:
Condensed Balance Sheets
December 31,
(dollars in thousands)20242023
Assets
Cash and due from bank subsidiaries$15,273 $6,807 
Investment in bank-issued trust preferred securities1,249 1,169 
Investment in subsidiaries173,916 175,273 
Other assets13,797 6,187 
Total assets$204,235 $189,436 
Liabilities and Stockholders’ Equity
Subordinated notes$49,486 $49,486 
Deferred tax liability1,981 735 
Other liabilities3,221 3,130 
Stockholders’ equity149,547 136,085 
Total liabilities and stockholders’ equity$204,235 $189,436 
Condensed Statements of Income
For the Years Ended December 31,
(dollars in thousands)202420232022
Income
Interest and dividends received from subsidiaries$20,117 $10,158 $11,497 
Other1,581 1,390 1,108 
Total income21,698 11,548 12,605 
Expenses
Interest on subordinated notes3,899 3,774 2,072 
Other2,875 2,771 3,191 
Total expenses6,774 6,545 5,263 
Income before income tax benefit and equity in undistributed income of subsidiaries14,924 5,003 7,342 
Income tax benefit1,672 1,058 859 
Equity in undistributed (loss) income of subsidiaries1,660 (5,105)12,550 
Net income$18,256 $956 $20,751 
Condensed Statements of Cash Flows
For the Years Ended December 31,
(dollars in thousands)202420232022
Cash flows from operating activities:
Net income$18,256 $956 $20,751 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries(1,660)5,105 (12,550)
(Increase) decrease in other assets(1,418)1,486 540 
(Decrease) increase in other liabilities(215)(262)— 
Other, net$(331)$(5,868)$(1,060)
Net cash provided by operating activities$14,632 $1,417 $7,681 
Cash flows from investing activities:
Decrease in investment in subsidiaries, net$— $7,575 $110 
Net cash provided by investing activities$— $7,575 $110 
Cash flows from financing activities:
Cash dividends paid - common stock$(5,047)$(4,649)$(4,240)
Purchase of treasury stock(1,119)— (2,892)
Net cash used in financing activities$(6,166)$(4,649)$(7,132)
Net increase in cash and due from banks$8,466 $4,343 $659 
Cash and due from banks at beginning of year6,807 2,464 1,805 
Cash and due from banks at end of year$15,273 $6,807 $2,464 
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income $ 18,256 $ 956 $ 20,751
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We recognize the security of our banking operations is critical to protecting our customers, maintaining our reputation and preserving the value of the Company. Our board of directors is actively involved in oversight of the Company’s risk management program, and cybersecurity represents an important component of the Company’s overall approach to enterprise risk management (“ERM”). The Company maintains a cybersecurity and information technology (“IT”) risk management program designed to prevent, detect and respond to information security threats, which are fully integrated into the Company’s ERM program.
Our cybersecurity and IT risk management program is based on recognized frameworks established by the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, as well as the banking-specific framework from the Federal Financial Institution Examination Council’s (“FFIEC’s”) Cybersecurity Assessment Tool. The Company’s program is led by our Director of Information Technology and Information Security Officer, whose teams are responsible for leading short-term and long-term enterprise-wide cybersecurity strategy, policy, standards, monitoring, architecture and processes. Our Director of Information Technology and Information Security Officer has over fifteen years of experience in the field of cybersecurity and over a decade of experience leading cyber security oversight in the banking industry.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] The Company maintains a cybersecurity and information technology (“IT”) risk management program designed to prevent, detect and respond to information security threats, which are fully integrated into the Company’s ERM program.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Although it is management's job to assess and manage our Company's exposure to risk, our board of directors oversees our Company's ERM, including cybersecurity and IT risks and threats, and establishes policies that govern the process. Our board conducts much of its risk oversight activities through our Audit Committee, which works closely with our Chief Risk Officer and Internal Audit Manager. The Audit Committee has primary management responsibility for oversight of operations, technology and operational risk, including information security, fraud, vendor, data protections and privacy, business continuity and cybersecurity risks. Our Audit Committee meets at least quarterly with our Chief Risk Officer, Internal Audit Manager and other members of management to assess, among other things, cyber threats or risks to align the Company for effective cybersecurity risk management and reporting. The Audit Committee receives quarterly reports from our Internal Audit Manager and Director of Information Technology and Information Security Officer on, among other things, the Company’s cyber risks and threats, the status of projects to strengthen the Company’s information security program, the emerging threat landscape and key metrics from cybersecurity systems and monitoring. Our Chief Risk Officer provides a presentation on ERM to the full board at least once annually. From time to time our Audit
Committee also receives updates between meetings from our Chief Risk Officer, Chief Executive Officer, Chief Financial Officer and other members of management relating to risk oversight matters.
Security event monitoring and detection
Our processes for assessing, identifying, and managing material risks from cybersecurity threats include using a wide-range of industry-leading security tools, regularly updating our technology roadmaps, and mandating cybersecurity awareness, business continuity and incident response training for all employees.
Recognizing the complexity and evolving nature of cybersecurity threats, we engage a range of outside experts, including cybersecurity assessors, consultants and auditors in evaluating and testing our cybersecurity and IT risk management systems. Engaging outside vendors enables us to leverage specialized knowledge and insights, ensuring our cybersecurity and IT risk management strategies and processes remain sound. Our collaboration with these third-parties includes threat assessments, consultation on security enhancements and regular audits, the results of these threat assessments and audits are reported to the Audit Committee. Strong vendor management and monitoring controls are enforced and require, at a minimum, annual due diligence on critical vendors.
We have implemented a comprehensive Incident Response Program to provide guidance in the event of a cybersecurity incident for contacting authorities and informing key stakeholders to ensure that any non-routine events are properly escalated. The Company participates in cybersecurity incident response exercises to test pre-planned response actions from the Company’s plan and to facilitate group discussions regarding the effectiveness of the Company’s cybersecurity incident response strategies and tactics. We use a third-party SEIM to provide 24x7x365 monitoring of logs, administrator and user actions, network and security appliances, and endpoint agents. Our Director of Information Technology and Information Security Officer actively engages with key vendors, industry participants, as well as the FS-ISAC, InfraGard, InspireCIO and SANS Internet Storm Center cybersecurity collaboration organizations.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Although it is management's job to assess and manage our Company's exposure to risk, our board of directors oversees our Company's ERM, including cybersecurity and IT risks and threats, and establishes policies that govern the process. Our board conducts much of its risk oversight activities through our Audit Committee, which works closely with our Chief Risk Officer and Internal Audit Manager.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Audit Committee meets at least quarterly with our Chief Risk Officer, Internal Audit Manager and other members of management to assess, among other things, cyber threats or risks to align the Company for effective cybersecurity risk management and reporting. The Audit Committee receives quarterly reports from our Internal Audit Manager and Director of Information Technology and Information Security Officer on, among other things, the Company’s cyber risks and threats, the status of projects to strengthen the Company’s information security program, the emerging threat landscape and key metrics from cybersecurity systems and monitoring. Our Chief Risk Officer provides a presentation on ERM to the full board at least once annually. From time to time our Audit
Committee also receives updates between meetings from our Chief Risk Officer, Chief Executive Officer, Chief Financial Officer and other members of management relating to risk oversight matters.
Cybersecurity Risk Role of Management [Text Block] Although it is management's job to assess and manage our Company's exposure to risk
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Company’s program is led by our Director of Information Technology and Information Security Officer, whose teams are responsible for leading short-term and long-term enterprise-wide cybersecurity strategy, policy, standards, monitoring, architecture and processes.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Director of Information Technology and Information Security Officer has over fifteen years of experience in the field of cybersecurity and over a decade of experience leading cyber security oversight in the banking industry.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] We have implemented a comprehensive Incident Response Program to provide guidance in the event of a cybersecurity incident for contacting authorities and informing key stakeholders to ensure that any non-routine events are properly escalated. The Company participates in cybersecurity incident response exercises to test pre-planned response actions from the Company’s plan and to facilitate group discussions regarding the effectiveness of the Company’s cybersecurity incident response strategies and tactics. We use a third-party SEIM to provide 24x7x365 monitoring of logs, administrator and user actions, network and security appliances, and endpoint agents. Our Director of Information Technology and Information Security Officer actively engages with key vendors, industry participants, as well as the FS-ISAC, InfraGard, InspireCIO and SANS Internet Storm Center cybersecurity collaboration organizations
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation
In December of 2008, the Company formed Hawthorn Real Estate, LLC, (the "Real Estate Company"); a wholly owned subsidiary of the Company. In December of 2017, the Company formed Hawthorn Risk Management, Inc., (the "Insurance Captive"); a wholly owned subsidiary of the Company. The consolidated financial statements include the accounts of the Company, the Bank, the Real Estate Company, and the Insurance Captive. The Insurance Captive was dissolved December 1, 2023. All significant intercompany accounts and transactions have been eliminated in consolidation.
Loans
Loans
Loans that the Company has the intent and ability to hold for the foreseeable future or to maturity are held for investment at their stated unpaid principal balance amount less unearned income and the allowance for credit losses. Income on loans is accrued on a simple-interest basis. Loan origination fees and certain direct costs are deferred and recognized over the life of the loan as an adjustment to yield.
Loans Held for Sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale. Prior to September 30, 2024, these loans were initially measured at fair value under the fair value option election with subsequent changes in fair value recognized in mortgage banking income. As of September 30, 2024, loans held for sale are being carried at the lower of cost or estimated fair value. The loans are primarily sold to Freddie Mac, Fannie Mae, PennyMac, and various other secondary market investors. The Company sells loans with servicing retained or released depending on pricing and market conditions. There were no mortgage loans held for sale at December 31, 2024 compared to $3.9 million at December 31, 2023.
Non-Accrual Loans
Loans are placed on non-accrual status when management believes that the borrower's financial condition, after consideration of business conditions and collection efforts, is such that collection of interest is doubtful. Loans that are
contractually 90 days past due as to principal and/or interest payments are generally placed on non-accrual, unless they are both well-secured and in the process of collection. Real estate loans secured by one-to-four family residential properties are exempt from these non-accrual guidelines. These loans are placed on non-accrual status after they become 120 days past due. Subsequent interest payments received on such loans are applied to principal if doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. A loan remains on non-accrual status until the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current.
Allowance for Credit Losses
Allowance for Credit Losses
The allowance for credit losses ("ACL") is measured using a lifetime expected loss model that incorporates relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. The allowance for credit losses is a valuation account that is deducted from loans amortized cost basis to present the net amount expected to be collected on the instrument. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Loans are charged off against the allowance for credit losses when management believes the balance has become uncollectible.
For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using relevant peer historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and the Company's outstanding loan balances during a lookback period. The Company chose to use relevant peer loan loss data due to statistical relevance concerns, low observation counts, historical data limitations, and the inability to secure through the cycle loan-level data. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of a single macroeconomic variable, which is the civilian unemployment rate. The adjustments are based on results from various regression models projecting the impact of the selected macroeconomic variable to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjusted loss rate is applied to the loans over the remaining contractual lives, adjusted for expected prepayments and curtailments. The contractual term excludes expected extensions, renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Agriculture loans also use the remaining life methodology for estimating life of loan losses. Additionally, the allowance for credit losses considers qualitative or environmental factors, such as: lending policies and procedures; economic conditions; the nature, volume and terms of the portfolio; lending staff and management; past due loans; the loan review system; collateral values; concentrations of credit; and external factors.
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures
The Company maintains a separate allowance for credit losses for off-balance-sheet credit exposures, including unfunded loan commitments, unless the associated obligation is unconditionally cancellable by the Company. This allowance is included in other liabilities on the consolidated balance sheets with associated expense recognized as a component of the provision for credit losses on the consolidated statements of income. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.
Certificates of Deposit in other banks
Certificates of Deposit in other banks
Certificates of deposit are investments made by the Company with other financial institutions, in amounts less than $250,000 each in order to qualify for insurance coverage under the Federal Deposit Insurance Corporation ("FDIC"), that are carried at cost which approximates fair values.
Investment Securities
Investment Securities
Available-for-sale Securities
The largest component of the Company's investment portfolio consists of debt securities which are classified as available-for-sale and are carried at fair value. Changes in fair value, excluding certain losses associated with other-than-temporary impairment, are reported in other comprehensive income, net of taxes, a component of stockholders' equity. Securities are periodically evaluated for impairment related to credit loss in accordance with guidance provided by the Financial Accounting Standards Board ("FASB") under Accounting Standards Codification ("ASC") Topic 326, Financial Instruments – Credit Losses. The Company assesses whether it intends to sell the securities or believes it more likely than not that it will be required to sell the security before the anticipated recovery. If neither condition is met, but the Company does not expect to recover the amortized cost basis, the Company determines whether a credit loss has occurred, which is then recognized in current earnings. Any impairment that has not been recorded through an allowance for credit losses related to all other factors is recognized in other comprehensive income.
Premiums and discounts are amortized using the interest method over the lives of the respective securities, with consideration of historical and estimated prepayment rates for mortgage-backed securities, as an adjustment to yield. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings based on the specific identification method for determining the cost of securities sold.
Other Investment Securities
Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in Federal Home Loan Bank of Des Moines ("FHLB") stock, and Midwest Independent BankersBank ("MIB") stock, that do not have readily determinable fair values, are required for membership in those organizations.
Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment.
Capital Stock of the FHLB
Capital Stock of the FHLB
The Bank, as a member of the Federal Home Loan Bank System administered by the Federal Housing Finance Agency, is required to maintain an investment in the capital stock of the Federal Home Loan Bank of Des Moines (FHLB) in an amount equal to 6 basis points of the Bank's year-end total assets plus 4.50% of advances from the FHLB to the Bank. These investments are recorded at cost, which represents redemption value.
Premises and Equipment
Premises and Equipment
Premises and equipment are stated at cost, less accumulated depreciation. Depreciation applicable to buildings and improvements and furniture and equipment is charged to expense using straight-line and accelerated methods over the estimated useful lives of the assets. Such lives are estimated to be five to 40 years for buildings and improvements and three to 15 years for furniture and equipment. Maintenance and repairs are charged to expense as incurred.
Derivative Instruments
Derivative Instruments
The Company recognizes derivatives as either assets or liabilities in the balance sheet, and measures those instruments at fair value. The Company enters into interest rate swap agreements to facilitate the risk management strategies of certain commercial banking clients. The Company mitigates this risk by entering into equal and offsetting interest rate swap agreements with highly rated third-party financial institutions.
Loan commitments related to the origination or acquisition of mortgage loans that will be held for sale are accounted for as derivative instruments. The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). The Company also enters into forward sales commitments for the mortgage loans underlying the rate lock commitments. As of December 31, 2024, the Company elected not to record the derivatives associated with IRLC due to the reduced volume of loans sold to the secondary market and therefore immateriality of the derivative.
The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows.
In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Mortgage Servicing Rights
Mortgage Servicing Rights
The Company originates and sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors or master servicer. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities.
Mortgage servicing rights ("MSRs") are carried at fair value in the consolidated balance sheet with changes in the fair value recognized in earnings. Because most servicing rights do not trade in an active market with readily observable prices, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies, ancillary income, and cost to service. These assumptions are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party valuation specialist firm.
In addition to the changes in fair value of the mortgage servicing rights, the Company also records loan servicing fee income as part of real estate servicing fees, net, in the consolidated statements of income. Loan servicing fee income represents revenue earned for servicing mortgage loans. The servicing fees are based on contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected. Corresponding loan servicing costs are charged to expense as incurred.
Other Real Estate Owned and Repossessed Assets
Other Real Estate Owned and Repossessed Assets
Other real estate owned and repossessed assets consist of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Other real estate owned assets are initially recorded as held for sale at the fair value of the collateral less estimated selling costs. Any adjustment is recorded as a charge-off against the allowance for credit losses. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. The valuation write-downs are recorded as other non-interest expense. The Company establishes a valuation allowance related to other real estate owned and repossessed assets on an asset-by-asset basis. The valuation allowance is created during the holding period when the fair value less cost to sell is lower than the cost of the asset.
Pension Plan
Pension Plan
The Company provides a noncontributory defined benefit pension plan for all full-time and eligible employees. The benefits are based on age, years of service and the level of compensation during the respective employee's highest ten years of compensation before retirement. Net periodic costs are recognized as employees render the services necessary to earn the retirement benefits. The Company records annual amounts relating to its pension plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Company reviews its assumptions on an annual basis and may make modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions.
The Company follows authoritative guidance included in the FASB ASC Topic 715, Compensation – Retirement Plans under the subtopic Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans. ASC Topic 715 requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its consolidated balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. This guidance also requires an employer to measure the funded status of a plan as of the date of its fiscal year-end, with limited exceptions. Additional disclosures are required to provide users with an understanding of how investment allocation decisions are made, major categories of plan assets, and fair value measurement of plan assets as defined in ASC Topic 820, Fair Value Measurements and Disclosures.
Investments in Historic Tax Credits
Investments in Historic Tax Credits.
The Company has a noncontrolling financial investment in a private investment fund and partnership that finances the rehabilitation and re-use of historic buildings. This unconsolidated investment may generate a return through the realization of federal income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investments over a period of time. Investments in historic tax credits are accounted for under the equity method of accounting and the Company’s recorded investment in these entities is carried in other assets on the Consolidated Balance Sheets with any unfunded commitment recorded in other liabilities. The tax credits and other net tax benefits received are recognized as a component of income tax expense in the Consolidated Statements of Income.
Income Taxes
Income Taxes
Income taxes are accounted for under the asset/liability method by recognizing the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Deferred income tax assets and liabilities are provided as temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements at the enacted tax rate expected to be applied in the period the deferred tax item is expected to be realized. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.
A tax position is initially recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. Penalties and interest incurred under the applicable tax law are classified as income tax expense. The Company has not recognized any tax liabilities or any interest or penalties in income tax expense related to uncertain tax positions as of December 31, 2024, 2023, and 2022.
Trust Department
Trust Department
Property held by the Bank in a fiduciary or agency capacity for customers is not included in the accompanying consolidated balance sheets, since such items are not assets of the Company. Trust department income is recognized on the accrual basis.
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of short-term federal funds sold and securities sold or purchased under agreements to resell, overnight interest earning deposits with banks, and cash and due from banks. The Federal Reserve is authorized to establish reserve requirements on depository institutions. In 2020, the Federal Reserve reduced the reserve requirement to zero percent. As such, cash balances at the Federal Reserve at December 31, 2024 and 2023 were not subject to a reserve requirement.
Treasury Stock
Treasury Stock
The purchase of the Company's common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost associated with such stock on a first-in-first-out basis. Gains on the sale of treasury stock are credited to additional paid-in-capital. Losses on the sale of treasury stock are charged to additional paid-in-capital to the extent of previous gains, otherwise charged to retained earnings.
Reclassifications
Reclassifications
Certain prior year information has been reclassified to conform to the 2024 presentation.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Standards Adopted in 2024
Segment disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures on both an annual and interim basis about significant segment expenses, including for companies with only one reportable segment. This ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of this ASU did not have a material effect on the Company's consolidated financial statements and related disclosures. See Note 20 Segment Information.
Impact of Recently Issued Accounting Standards But Not Yet Adopted
Income Taxes. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The ASU requires that all entities disclose on an annual basis (1) the amount of income taxes paid, disaggregated by federal, state and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal or greater than 5 percent of total income taxes paid. The ASU also requires that all entities disclose (1) income (loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic or foreign and (2) income tax expense (or benefit) from continuing operations disaggregated by federal (national), state and foreign. This ASU is effective for public business entities for annual periods beginning after December 15, 2024. The Company does not expect adoption of the ASU to have a material effect on the Company's consolidated financial statements.
Income Statement. In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU require public companies to disclose, in the notes to the financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Additionally, in January 2025, the FASB issued ASU No. 2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This ASU amends the effective date of ASU No. 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU No. 2024-03 is permitted. The Company is currently evaluating the impact of the ASU on the Company’s consolidated financial statements.
v3.25.1
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Loans, by Major Class Within the Company's Loan Portfolio
Major classifications within the Company’s held for investment loan portfolio at December 31, 2024 and 2023 were as follows:
(dollars in thousands)20242023
Commercial, financial, and agricultural$202,329 $226,275 
Real estate construction − residential
32,046 58,347 
Real estate construction − commercial
80,435 130,296 
Real estate mortgage − residential
361,735 372,391 
Real estate mortgage − commercial
775,594 731,024 
Installment and other consumer14,021 20,814 
Total loans held for investment$1,466,160 $1,539,147 
Schedule of Loans to Directors and Executive Officers
The following is a summary of loans to directors and executive officers or to entities in which such individuals had a beneficial interest of the Company:
(dollars in thousands)
Balance at December 31, 2023
$9,597 
New loans9,452 
Amounts collected(6,474)
Balance at December 31, 2024
$12,575 
Schedule of the Allowance for Loan Losses
The following table illustrates the changes in the allowance for credit losses by portfolio segment:
(dollars in thousands)Commercial,
Financial, &
Agricultural		 Real Estate
Construction -
Residential		 Real Estate
Construction -
Commercial		 Real Estate
Mortgage -
Residential		 Real Estate
Mortgage -
Commercial		 Installment
and other
Consumer		 Un-
allocated		 Total
Balance at, December 31, 20212,717 137 588 2,482 10,662 256 61 16,903 
Charge-offs(135)— — — (181)(321)— (637)
Recoveries56 — 22 45 11 88 — 222 
Provision for (release of) loan losses (1)97 20 265 802 (2,492)303 105 (900)
Balance at, December 31, 20222,735 157 875 3,329 8,000 326 166 15,588 
Adoption of ASU 2016-13$(649)$291 $2,894 $1,890 $1,613 $(80)$(166)$5,793 
Balance at January 1, 20232,086 448 3,769 5,219 9,613 246 — 21,381 
Charge-offs(161)— — (88)(32)(347)— (628)
Recoveries192 — 22 23 4 85 — 326 
Provision for (release of) credit losses1,091 595 (518)110 952 248 187 2,665 
Balance at, December 31, 20233,208 1,043 3,273 5,264 10,537 232 187 23,744 
Charge-offs$(2,238)$— $— $(51)$(437)$(265)$— $(2,991)
Recoveries118 — 27 13 — 108 — 266 
Provision for (release of) credit losses472 (465)(1,079)84 2,205 63 (255)1,025 
Balance at, December 31, 20241,560 578 2,221 5,310 12,305 138 (68)22,044 
(1) Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.
Schedule of Risk Categories by Class
The amortized cost of collateral-dependent loans by class as of December 31, 2024 and 2023 was as follows:
Collateral Type
(dollars in thousands)Real EstateOtherAllowance Allocated
December 31, 2024
Commercial, financial, and agricultural$— $766 $125 
Real estate construction − residential454 — 194 
Real estate mortgage − commercial65 — — 
Total$519 $766 $319 
December 31, 2023
Commercial, financial, and agricultural$— $2,221 $1,300 
Real estate construction − residential432 — 164 
Real estate mortgage − residential46 — 19 
Real estate mortgage − commercial2,369 — — 
Total$2,847 $2,221 $1,483 
The following table presents the recorded investment by risk categories at December 31, 2024:
Term Loans
Amortized Cost Basis by Origination Year and Risk Grades
(dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
December 31, 2024
Commercial, Financial, & Agricultural
Pass$22,726 $21,302 $30,025 $25,338 $26,557 $3,932 $62,205 $1,531 $193,616 
Watch— 120 1,473 — — 262 504 — 2,359 
Special Mention— — — — 309 — 741 — 1,050 
Substandard— — 3,350 628 — — — 403 4,381 
Doubtful— — — — — — 79 — 79 
Non-accrual loans286 87 78 — 37 — 356 — 844 
Total$23,012 $21,509 $34,926 $25,966 $26,903 $4,194 $63,885 $1,934 $202,329 
Gross YTD charge-offs— 230 — 104 2 106 1,796 — 2,238 
Real Estate Construction - Residential
Pass$16,368 $13,808 $601 $617 $165 $— $— $33 $31,592 
Non-accrual loans454 — — — — — — — 454 
Total$16,822 $13,808 $601 $617 $165 $— $— $33 $32,046 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Construction - Commercial
Pass$49,742 $7,057 $10,424 $3,828 $622 $564 $7,072 $— $79,309 
Watch911 124 13 — — — — — 1,048 
Substandard— 29 — — — — — — 29 
Non-accrual loans— — — — — 49 — — 49 
Total$50,653 $7,210 $10,437 $3,828 $622 $613 $7,072 $— $80,435 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Mortgage - Residential
Pass$30,005 $46,795 $115,928 $49,519 $42,036 $23,440 $44,148 $1,543 $353,414 
Watch5,702 — 40 391 423 675 30 — 7,261 
Substandard— — — — — 98 — — 98 
Non-accrual loans— — 426 89 — 278 169 — 962 
Total$35,707 $46,795 $116,394 $49,999 $42,459 $24,491 $44,347 $1,543 $361,735 
Gross YTD charge-offs— — — — — 14 37 — 51 
Real Estate Mortgage - Commercial
Pass$56,648 $117,853 $212,698 $203,591 $69,342 $57,352 $14,815 $137 $732,436 
Watch2,298 51 4,763 1,961 — 184 — 581 9,838 
Special Mention27,271 — 5,679 — — — — — 32,950 
Substandard— — 231 — — — — — 231 
Non-accrual loans64 75 — — — — — — 139 
Total$86,281 $117,979 $223,371 $205,552 $69,342 $57,536 $14,815 $718 $775,594 
Gross YTD charge-offs— 340 — 65 — 32 — — 437 
Installment and other Consumer
Pass$2,188 $3,636 $3,591 $1,165 $554 $2,805 $72 $— $14,011 
Non-accrual loans— — — — — 10 — — 10 
Total$2,188 $3,636 $3,591 $1,165 $554 $2,815 $72 $— $14,021 
Gross YTD charge-offs10 11 9 3 1 230 1 — 265 
Total Portfolio
Pass$177,677 $210,451 $373,267 $284,058 $139,276 $88,093 $128,312 $3,244 $1,404,378 
Watch8,911 295 6,289 2,352 423 1,121 534 581 20,506 
Special Mention27,271 — 5,679 — 309 — 741 — 34,000 
Substandard— 29 3,581 628 — 98 — 403 4,739 
Doubtful— — — — — — 79 — 79 
Non-accrual loans804 162 504 89 37 337 525 — 2,458 
Total$214,663 $210,937 $389,320 $287,127 $140,045 $89,649 $130,191 $4,228 $1,466,160 
Total Gross YTD charge-offs$10 $581 $9 $172 $3 $382 $1,834 $— $2,991 
The following table presents the recorded investment by risk categories at December 31, 2023:
Term Loans
Amortized Cost Basis by Origination Year and Risk Grades
(dollars in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
December 31, 2023
Commercial, Financial, & Agricultural
Pass$40,103 $43,082 $32,812 $30,965 $4,774 $5,022 $55,379 $213 $212,350 
Watch1 2,505 32 586 3 282 2,502 — 5,911 
Substandard371 3,758 19 16 — — 323 1,299 5,786 
Non-accrual loans159 96 317 — 7 — 1,649 — 2,228 
Total$40,634 $49,441 $33,180 $31,567 $4,784 $5,304 $59,853 $1,512 $226,275 
Gross YTD charge-offs— 1 — — — 160 — — 161 
Real Estate Construction - Residential
Pass$39,847 $17,259 $634 $175 $— $— $— $— $57,915 
Non-accrual loans432 — — — — — — — 432 
Total$40,279 $17,259 $634 $175 $— $— $— $— $58,347 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Construction - Commercial
Pass$49,041 $53,058 $24,371 $1,040 $31 $735 $187 $— $128,463 
Watch934 17 — — — — 103 — 1,054 
Substandard710 — — — — — — — 710 
Non-accrual loans— — — — — 69 — — 69 
Total$50,685 $53,075 $24,371 $1,040 $31 $804 $290 $— $130,296 
Gross YTD charge-offs— — — — — — — — — 
Real Estate Mortgage - Residential
Pass$65,472 $121,430 $62,998 $47,884 $7,242 $19,193 $44,574 $202 $368,995 
Watch179 251 411 293 71 1,310 23 — 2,538 
Substandard16 — — 129 — 126 — — 271 
Non-accrual loans— 23 93 135 — 246 90 — 587 
Total$65,667 $121,704 $63,502 $48,441 $7,313 $20,875 $44,687 $202 $372,391 
Gross YTD charge-offs— — — 75 — — 13 — 88 
Real Estate Mortgage - Commercial
Pass$99,081 $208,699 $204,789 $84,363 $27,085 $39,941 $16,059 $659 $680,676 
Watch15,759 10,978 2,737 91 345 897 70 — 30,877 
Substandard— 215 15,944 — 45 289 — — 16,493 
Non-accrual loans1,817 54 712 212 83 — 100 — 2,978 
Total$116,657 $219,946 $224,182 $84,666 $27,558 $41,127 $16,229 $659 $731,024 
Gross YTD charge-offs— — — — — 32 — — 32 
Installment and other Consumer
Pass$7,430 $6,497 $2,720 $1,287 $987 $1,803 $90 $— $20,814 
Total$7,430 $6,497 $2,720 $1,287 $987 $1,803 $90 $— $20,814 
Gross YTD charge-offs84 23 7 — — 232 1 — 347 
Total Portfolio
Pass$300,974 $450,025 $328,324 $165,714 $40,119 $66,694 $116,289 $1,074 $1,469,213 
Watch16,873 13,751 3,180 970 419 2,489 2,698 — 40,380 
Substandard1,097 3,973 15,963 145 45 415 323 1,299 23,260 
Non-accrual loans2,408 173 1,122 347 90 315 1,839 — 6,294 
Total$321,352 $467,922 $348,589 $167,176 $40,673 $69,913 $121,149 $2,373 $1,539,147 
Total Gross YTD charge-offs$84 $24 $7 $75 $— $424 $14 $— $628 
Schedule of Financing Receivable, Nonaccrual
The following tables present the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of December 31, 2024 and 2023.
(dollars in thousands)Non-accrual with no AllowanceNon-accrual with AllowanceTotal Non-accrual90 Days Past Due And Still AccruingTotal Non-performing Loans
December 31, 2024
Commercial, Financial, and Agricultural$— $923 $923 $— $923 
Real estate construction − residential— 454 454 — 454 
Real estate construction − commercial— 49 49 — 49 
Real estate mortgage − residential— 963 963 207 1,170 
Real estate mortgage − commercial— 138 138 — 138 
Installment and Other Consumer— 10 10 3 13 
Total$— $2,537 $2,537 $210 $2,747 
December 31, 2023
Commercial, Financial, and Agricultural$— $2,228 $2,228 $— $2,228 
Real estate construction − residential— 432 432 —432 
Real estate construction − commercial— 69 69 —69 
Real estate mortgage − residential— 587 587 115702 
Real estate mortgage − commercial2,368 610 2,978 —2,978 
Installment and Other Consumer— — — 4 4 
Total$2,368 $3,926 $6,294 $119 $6,413 
Schedule of Aging Information for the Company's Past Due and Non-Accrual Loans
The following table provides aging information for the Company's past due and non-accrual loans at December 31, 2024 and 2023.
(dollars in thousands)Current or
Less Than
30 Days
Past Due		30 - 89 Days
Past Due		90 Days
Past Due
And Still
Accruing		Non-AccrualTotal
December 31, 2024
Commercial, Financial, and Agricultural$201,201 $205 $— $923 $202,329 
Real estate construction − residential31,592 — — 454 32,046 
Real estate construction − commercial80,386 — — 49 80,435 
Real estate mortgage − residential358,393 2,172 207 963 361,735 
Real estate mortgage − commercial773,918 1,538 — 138 775,594 
Installment and Other Consumer13,900 108 3 10 14,021 
Total$1,459,390 $4,023 $210 $2,537 $1,466,160 
December 31, 2023
Commercial, Financial, and Agricultural$223,845 $202 $— $2,228 $226,275 
Real estate construction − residential57,568 347 — 432 58,347 
Real estate construction − commercial130,227 — — 69 130,296 
Real estate mortgage − residential368,956 2,733 115 587 372,391 
Real estate mortgage − commercial728,029 17 — 2,978 731,024 
Installment and Other Consumer20,607 203 4 — 20,814 
Total$1,529,232 $3,502 $119 $6,294 $1,539,147 
v3.25.1
Other Real Estate and Other Assets Acquired in Settlement of Loans (Tables)
 12 Months Ended
Dec. 31, 2024
Other Real Estate [Abstract]  
Schedule of Real Estate and Other Assets Acquired in Settlement of Loans
(in thousands)20242023
Real estate construction - commercial$2,549 $7,668 
Real estate mortgage - residential42 20 
Real estate mortgage - commercial858 — 
Repossessed assets— 6 
Total$3,449 $7,694 
Less valuation allowance for other real estate owned(2,003)(5,950)
Total other real estate owned$1,446 $1,744 
Schedule of Activity in Valuation Allowance for Other Real Estate Owned
Activity in the valuation allowance for other real estate owned in settlement of loans for the years indicated:
(dollars in thousands)202420232022
Balance, beginning of year$5,950 $2,664 $2,911 
Provision for (release of) other real estate owned (127)4,729 (29)
Charge-offs(3,820)(1,443)(218)
Balance, end of year$2,003 $5,950 $2,664 
v3.25.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost and Fair Value of Debt Securities Available-For-Sale
The amortized cost, gross unrealized gains and losses, and fair value of debt securities classified as available-for-sale at December 31, 2024 and 2023 were as follows:
Total
Amortized
Cost		Gross UnrealizedFair
Value
(dollars in thousands)GainsLosses
December 31, 2024
U.S. Treasury$4,937 $— $(22)$4,915 
U.S. government and federal agency obligations408 — (7)401 
U.S. government-sponsored enterprises13,020 11 (227)12,804 
Obligations of states and political subdivisions125,559 7 (23,080)102,486 
Mortgage-backed securities84,729 59 (6,678)78,110 
Other debt securities (a)19,419 49 (781)18,687 
Bank issued trust preferred securities (a)1,486 — (237)1,249 
Total available-for-sale securities$249,558 $126 $(31,032)$218,652 
December 31, 2023
U.S. Treasury$1,977 $1 $— $1,978 
U.S. government and federal agency obligations446 — (19)427 
U.S. government-sponsored enterprises22,042 16 (236)21,822 
Obligations of states and political subdivisions126,396 55 (19,566)106,885 
Mortgage-backed securities51,736 27 (6,123)45,640 
Other debt securities (a)11,825 22 (1,026)10,821 
Bank issued trust preferred securities (a)1,486 — (317)1,169 
Total available-for-sale securities$215,908 $121 $(27,287)$188,742 
(a) Certain hybrid instruments possessing characteristics typically associated with debt obligations.
Schedule of Amortized Cost and Fair Value of Debt Securities Classified as Available-For-Sale by Contractual Maturity Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.
(dollars in thousands)Amortized
Cost		Fair
Value
Due in one year or less$4,275 $4,270 
Due after one year through five years19,715 19,480 
Due after five years through ten years37,506 34,431 
Due after ten years103,333 82,361 
Total164,829 140,542 
Mortgage-backed securities84,729 78,110 
Total available-for-sale securities$249,558 $218,652 
Schedule of Other Securities
(dollars in thousands)20242023
FHLB stock$4,924 $6,071 
MIB stock151 151 
Equity securities with readily determinable fair values74 78 
Total other investment securities$5,149 $6,300 
Schedule of Unrealized Losses
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024 and December 31, 2023 were as follows:
Less than 12 months12 months or moreTotal
Fair
Value		Total
Unrealized
Losses
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
At December 31, 2024
U.S. Treasury$4,915 $(22)$— $— $4,915 $(22)
U.S. government and federal agency obligations— — 401 (7)401 (7)
U.S. government-sponsored enterprises996 (5)1,778 (222)2,774 (227)
Obligations of states and political subdivisions2,791 (163)98,442 (22,917)101,233 (23,080)
Mortgage-backed securities37,759 (563)33,612 (6,115)71,371 (6,678)
Other debt securities4,900 (58)9,101 (723)14,001 (781)
Bank issued trust preferred securities— — 1,249 (237)1,249 (237)
Total$51,361 $(811)$144,583 $(30,221)$195,944 $(31,032)
(in thousands)
At December 31, 2023
      
U.S. Treasury$997 $— $— $— $997 $— 
U.S. government and federal agency obligations— — 427 (19)427 (19)
U.S. government-sponsored enterprises11,995 (8)1,772 (228)13,767 (236)
Obligations of states and political subdivisions1,501 (158)103,283 (19,408)104,784 (19,566)
Mortgage-backed securities2,935 (40)39,793 (6,083)42,728 (6,123)
Other debt securities— — 8,799 (1,026)8,799 (1,026)
Bank issued trust preferred securities— — 1,169 (317)1,169 (317)
Total$17,428 $(206)$155,243 $(27,081)$172,671 $(27,287)
Schedule of Components of Investment Securities Gains and Losses
The following table presents the gross realized gains and losses from sales and calls of available-for-sale securities, as well as gains and losses on equity securities from fair value adjustments which have been recognized in earnings:
(dollars in thousands)202420232022
Available-for-sale securities:
Gross realized gains$—$—$—
Gross realized losses—(11,562)—
Credit losses recognized———
Other investment securities:
Fair value adjustments, net(4)32(14)
Certificates of deposit:
Gross realized gains———
Gross realized losses—(17)—
Investment securities (losses) gains, net$(4)$(11,547)$(14)
v3.25.1
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Premises and Equipment
A summary of premises and equipment at December 31, 2024 and 2023 is as follows:
(dollars in thousands)20242023
Land and land improvements$9,190 $9,683 
Buildings and improvements36,401 35,195 
Furniture and equipment13,675 13,214 
Operating leases - right of use asset2,796 2,073 
Construction in progress271 2,103 
Total62,333 62,268 
Less accumulated depreciation31,167 30,221 
Premises and equipment, net$31,166 $32,047 
Schedule of Depreciation Expense
Depreciation expense for the years ended December 31, 2024, 2023, and 2022 was as follows:
(in thousands)202420232022
Depreciation expense$1,650 $2,106 $2,141 
v3.25.1
Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Mortgage Servicing Rights (MSRs)
The table below presents changes in mortgage servicing rights for the years ended December 31, 2024, 2023, and 2022.
(dollars in thousands)202420232022
Balance at beginning of year$1,738 $2,899 $2,659 
Originated mortgage servicing rights— 39 64 
Sale proceeds(1,670)— — 
Changes in fair value:
Due to changes in model inputs and assumptions (1)— (939)479 
Other changes in fair value (2)(68)(261)(303)
Total changes in fair value(68)(1,200)176 
Balance at end of year$— $1,738 $2,899 
(1)The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates.
(2)Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time.
Schedule of Key Data and Assumptions Used in Estimating the Fair Value of the Company's MSRs
The following key data and assumptions were used in estimating the fair value of the Company's mortgage servicing rights as of December 31, 2024 and 2023:
20242023
Weighted average constant prepayment rateNA6.55 %
Weighted average note rateNA3.52 %
Weighted average discount rateNA11.00 %
Weighted average expected life (in years)NA7.1
v3.25.1
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table reflects the estimated fair value of derivative instruments included in other assets and other liabilities on the consolidated balance sheets along with their respective notional amounts on a gross basis.
As of December 31, 2024
Fair Value
Notional Amount Derivative Assets Derivative Liabilities
Derivatives not designated as hedging instruments
Derivative instruments, interest rate swaps$16,542 $66 $89 
Mortgage derivatives - Interest rate lock commitments— — 
Mortgage derivatives - Forward commitments— — 
Total derivatives not designated as hedging instruments $66 $89 
Schedule of Derivatives Not Designated as Hedging Instruments [Table Text Block]
The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income as of December 31, 2024. The Company recognized $0.3 million of other income related to client swaps during the year ended December 31, 2024.
Gain or (Loss) Recognized in Income on Derivative
(dollars in thousands)Location of Gain or (Loss) Recognized in Income on DerivativeFor The Year Ended December 31, 2024
Derivatives Not Designated as Hedging Instruments:
Derivative instruments, interest rate swaps (1)Other non-interest income $(23)
Mortgage derivatives - Interest rate lock commitmentsOther non-interest income / expense(41)
Mortgage derivatives - Forward commitmentsOther non-interest income / expense41 
Total$(23)
(1) Gain (loss) represents net fair value adjustments (including credit related adjustments) for client swaps.
v3.25.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2024
Deposits [Abstract]  
Schedule of Maturities of Total Time Deposits
The table below represents the aggregate amount of time deposits with balances that met or exceeded the FDIC insurance limit of $250,000 and brokered deposits as of December 31, 2024 and 2023:
(aggregate amounts in thousands)December 31, 2024December 31, 2023
Time deposits with balances > $250,000$100,383 $108,147 
Brokered deposits$13 $161 
The scheduled maturities of total time deposits at December 31, 2024 were as follows:
(aggregate amounts in thousands)
Due within:
2025$279,190 
202613,356 
20276,080 
20282,885 
2029310 
Thereafter— 
Total$301,821 
v3.25.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Maturity of Remaining Operating Leases Liabilities
The table below summarizes the maturity of remaining operating lease liabilities:
Lease payments due in:Operating
Lease
(dollars in thousands)
2025$391
2026400
2027327
2028330
2029112
Thereafter326
Total lease payments1,886
Less imputed interest(208)
Total lease liabilities, as reported$1,678
v3.25.1
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Other Borrowings
Federal Home Loan Bank and other borrowings of the Company consisted of the following:
20242023
(dollars in thousands)Maturity
Date		Year End
Balance		Year End
Weighted
Rate		Year End
Balance		Year End
Weighted Rate
FHLB advances2024$— — %$26,000 3.47 %
202540,000 3.37 %30,000 2.89 %
202623,000 2.53 %23,000 2.53 %
20277,500 2.05 %17,500 3.28 %
2028— — %— — %
20292,925 1.91 %— — %
Thereafter8,000 1.41 %10,500 1.61 %
Other
2031$100 4.42 %$— — %
Total
$81,525 $107,000 
Subordinated notes2034$25,774 7.31 %$25,774 8.34 %
203523,712 6.44 %23,712 7.47 %
Total
$49,486 $49,486 
v3.25.1
Income Tax Expense (Benefit) (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Tax (Benefit)
The composition of income tax expense (benefit) for the years ended December 31, 2024, 2023, and 2022 was as follows:
(dollars in thousands)202420232022
Current:
Federal$3,070 $793 $4,591 
State— 67 (134)
Total current3,070 860 4,457 
Deferred:
Federal1,032 (1,384)(119)
State— — — 
Total deferred1,032 (1,384)(119)
Total income tax expense (benefit)$4,102 $(524)$4,338 
Schedule of Applicable Income Tax Expense
Applicable income tax expense (benefit) for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2024, 2023, and 2022 are as follows:
202420232022
(dollars in thousands)Amount%Amount%Amount%
Income before provision for income tax (benefit)$22,358 $432 $25,089 
Tax at statutory federal income tax rate$4,695 21.00 %$91 21.00 %$5,269 21.00 %
Tax-exempt income, net(567)(2.54)(509)(117.88)(821)(3.27)
State income tax expense (benefit), net of federal tax expense (benefit)— — 53 12.25 (106)(0.42)
Other, net(26)(0.11)(159)(36.86)(4)(0.02)
Provision for income tax (benefit) expense$4,102 18.35 %$(524)(121.49)%$4,338 17.29 %
Schedule of Deferred Tax Assets and Deferred Tax Liabilities The components of deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023 were as follows:
(dollars in thousands)20242023
Deferred tax assets:
Allowance for credit losses
$4,589 $4,669 
Securities6,428 5,653 
Other real estate owned421 1,250 
Deferred loan fees450 437 
Lease liability 352 255 
Accrued / deferred compensation763 835 
Other497 592 
Total deferred tax assets$13,500 $13,691 
Deferred tax liabilities:
Premises and equipment$515 $319 
Mortgage servicing rights— 365 
Deferred loan costs395 444 
Pension2,424 1,180 
Right-of-use asset343 246 
Prepaid expenses233 187 
Other61 38 
Total deferred tax liabilities3,971 2,779 
Net deferred tax assets$9,529 $10,912 
v3.25.1
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Schedule of Change in the Components of the Accumulated Other Comprehensive Loss
The following table summarizes the change in the components of the Company's accumulated other comprehensive income (loss) for the years ended December 31, as indicated.
(dollars in thousands)Unrealized
Income (Loss)
on Securities (1)		Unrecognized Net
Pension and
Postretirement
Costs (2)		Accumulated
Other
Comprehensive
Income (Loss)
Balance, December 31, 2022
$(36,657)$4,943 $(31,714)
Other comprehensive income (loss), before reclassifications10,087(640)9,447
Amounts reclassified from accumulated other comprehensive income (loss)9,1484,129 13,277 
Other comprehensive income, before tax19,2353,489 22,724
Income tax expense(4,039)(733)(4,772)
Other comprehensive income, net of tax15,1962,756 17,952
Balance, December 31, 2023
$(21,461)$7,699 $(13,762)
Other comprehensive income (loss), before reclassifications(3,740)(690)(4,430)
Amounts reclassified from accumulated other comprehensive income (loss)— 6,1006,100
Other comprehensive income (loss), before tax(3,740)5,4101,670
Income tax (expense) benefit785 (1,136)(351)
Other comprehensive income (loss), net of tax(2,955)4,2741,319
Balance, December 31, 2024
$(24,416)$11,973 $(12,443)
(1)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in gains (losses) on sale of investment securities in the consolidated statements of income.
(2)The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension (income) cost. See Note 14.
Schedule of Stock by Class
The following table shows the changes in shares of common stock issues and common stock held as treasury shares for the years ended December 31, 2023, 2023, and 2022.
Common Stock IssuedTreasury Stock HeldCommon Stock Outstanding
Balance at, December 31, 2021$7,023,821 $(406,846)$6,616,975 
Stock dividend260,330—260,330
Repurchase of common stock—(108,724)(108,724)
Balance at, December 31, 2022$7,284,151 $(515,570)$6,768,581 
Stock dividend270,742—270,742
Balance at, December 31, 2023$7,554,893 $(515,570)$7,039,323 
Restricted share unit activity—5,9945,994
Repurchase of common stock—(56,692)(56,692)
Balance at, December 31, 2024$7,554,893 $(566,268)$6,988,625 
v3.25.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Nonvested Restricted Stock Units Activity
The following table summarizes the status of the Company's RSUs for the year ended December 31, 2024:
RSUs
20242023
(dollars in thousands, except per share amounts)QuantityWeighted-Average Grant Date Fair Value Per shareQuantityWeighted-Average Grant Date Fair Value Per share
Non-vested beginning of year18,277 $20.63 — $— 
Granted23,151 24.68 18,277 20.63 
Vested6,092 23.81 — — 
Forfeited— — — — 
Non-vested end of year35,336 $22.84 18,277 $20.63 
v3.25.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Schedule of Obligations and Funded Status
Obligations and Funded Status at December 31,
(dollars in thousands)20242023
Change in projected benefit obligation:
Balance, January 1$30,623 $29,131 
Service cost947 946 
Interest cost1,477 1,428 
Actuarial (gain) loss *(3,147)49 
Benefits paid(1,113)(931)
Balance, December 31,
$28,787 $30,623 
Change in plan assets:
Fair value, January 1$36,242 $30,932 
Actual return on plan assets5,348 6,350 
Employer contribution— — 
Expenses paid(145)(109)
Benefits paid(1,113)(931)
Fair value, December 31,
$40,332 $36,242 
Funded status at end of year$11,544 $5,619 
Accumulated benefit obligation$24,954 $25,897 
Amounts recognized in the consolidated balance sheet consist of the following:
(in thousands)20242023
Non-current assets$11,544 $5,619 
Net asset at end of year$11,544 $5,619 
*The actuarial gain in 2024 was primarily driven by the increase in the year-over-year discount rate, which resulted in a gain for the plan.
Schedule of Components of Net Pension Cost
The following items are components of net pension (income) cost for the years ended December 31, as indicated:
(dollars in thousands)202420232022
Service cost - benefits earned during the year$947 $946 $1,491 
Interest costs on projected benefit obligations (a)1,477 1,428 1,174 
Expected return on plan assets (a)(2,358)(2,178)(2,282)
Expected administrative expenses109 115 118 
Amortization of unrecognized net (gain) loss (a)(690)(640)— 
Net periodic pension (income) cost$(515)$(329)$501 
(a)The components of net periodic pension (income) cost other than the service cost component are included in other non-interest income.
Schedule of Accumulated Other Comprehensive Loss
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) at December 31, 2024 and 2023 are shown below, including amounts recognized in other comprehensive income during the periods. All amounts are shown on a pre-tax basis.
(dollars in thousands)20242023
Net accumulated actuarial net gain$15,155 $9,745 
Accumulated other comprehensive gain15,155 9,745 
Net periodic benefit cost in excess of cumulative employer contributions(3,611)(4,126)
Net amount recognized at December 31, balance sheet
$11,544 $5,619 
Net actuarial gain arising during period$6,100 $4,129 
Amortization of net actuarial gain (690)(640)
Total recognized in other comprehensive income (loss)$5,410 $3,489 
Total recognized in net periodic pension cost and other comprehensive income (loss)$(5,925)$(3,818)
Schedule of Assumptions Utilized
Assumptions utilized to determine benefit obligations as of December 31, 2024, 2023, and 2022 and to determine pension expense for the years then ended are as follows:
202420232022
Determination of benefit obligation at year end:
Discount rate5.65 %4.95 %5.10 %
Annual rate of compensation increase4.50 %4.50 %4.50 %
Determination of pension expense for year ended:
Discount rate for the service cost4.95 %5.10 %3.10 %
Annual rate of compensation increase4.50 %4.50 %4.50 %
Expected long-term rate of return on plan assets6.75 %6.75 %6.75 %
Schedule of Fair Value of Pension Plan Assets During the past five years, the Company's plan assets have experienced the following annual returns:
(dollars in thousands)20242023202220212020
Plan Assets:
Actual rate of return15.9%21.1%(17.0)%22.1%19.7%
The fair value of the Company's pension plan assets at December 31, 2024 and 2023 by asset category was as follows:
Fair Value Measurements
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2024
Cash equivalents$3,630 $3,630 $— $— 
U.S government agency obligations7,536 — 7,536 — 
Corporate bonds975 — 975 — 
Mutual funds *
28,191 28,191 — — 
Total$40,332 $31,821 $8,511 $— 
December 31, 2023
Cash equivalents$1,521 $1,521 $— $— 
U.S government agency obligations2,587 — 2,587 — 
Mutual funds *
32,134 32,134 — — 
Total$36,242 $33,655 $2,587 $— 
*Mutual funds consist of equity securities
Schedule of Future Benefit Payments
The following future benefit payments are expected to be paid:
YearPension
benefits
(dollars in thousands)
2025$1,124 
20261,208 
20271,345 
20281,466 
20291,602 
Thereafter10,036 
v3.25.1
Earnings per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Calculations of Basic and Diluted Earnings Per Common Share
(dollars in thousands, except per share data)202420232022
Net income available to common shareholders$18,256 $956 $20,751 
Weighted average common shares outstanding7,000,480 7,039,323 7,063,054 
Effect of dilutive equity-based awards— — — 
Weighted average dilutive common shares outstanding7,000,480 7,039,323 7,063,054 
Basic earnings per share$2.61 $0.14 $2.94 
Diluted earnings per share$2.61 $0.14 $2.94 
v3.25.1
Capital Requirements (Tables)
 12 Months Ended
Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Schedule of Capital Adequacy Requirements of Regulatory Capital Ratios
Under the Basel III requirements, at December 31, 2024 and December 31, 2023, the Company met all capital adequacy requirements and had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as shown in the following table as of years indicated:
Actual Minimum Capital
Required - Basel III
Fully Phased-In 		Required to be
Considered Well-
Capitalized
(dollars in thousands)Amount Ratio Amount Ratio Amount Ratio
December 31, 2024
Total Capital (to risk-weighted assets):
Company$232,400 14.79 %$164,953 10.50 %$— N.A%
Bank219,410 14.10 %163,365 10.50 %155,586 10.00 %
Tier 1 Capital (to risk-weighted assets):
Company$212,780 13.54 %$133,533 8.50 %$— N.A%
Bank199,960 12.85 %132,248 8.50 %124,469 8.00 %
Common Equity Tier 1 Capital (to risk-weighted assets):
Company$164,780 10.49 %$109,968 7.00 %$— N.A%
Bank199,960 12.85 %108,910 7.00 %101,131 6.50 %
Tier 1 leverage ratio (to adjusted average assets):
Company$212,780 11.46 %$74,261 4.00 %$— N.A%
Bank199,960 10.83 %73,847 4.00 %92,309 5.00 %
December 31, 2023
Total Capital (to risk-weighted assets):
Company$221,586 13.99 %$166,266 10.50 %$— N.A%
Bank219,043 13.91 %165,369 10.50 %157,494 10.00 %
Tier 1 Capital (to risk-weighted assets):
Company$199,395 12.59 %$134,596 8.50 %$— N.A%
Bank199,490 12.67 %133,870 8.50 %125,995 8.00 %
Common Equity Tier 1 Capital (to risk-weighted assets)
Company$154,033 9.73 %$110,844 7.00 %$— N.A%
Bank199,490 12.67 %110,246 7.00 %102,371 6.50 %
Tier 1 leverage ratio:
Company$199,395 10.29 %$77,492 4.00 %$— N.A%
Bank199,490 10.31 %77,411 4.00 %96,763 5.00 %
v3.25.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Recorded at Fair Value on a Recurring Basis
Fair Value Measurements
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2024
Assets:
U.S. Treasury$4,915 $4,915 $— $— 
U.S. government and federal agency obligations401 — 401 — 
U.S. government-sponsored enterprises12,804 — 12,804 — 
Obligations of states and political subdivisions102,486 — 102,486 — 
Mortgage-backed securities78,110 — 78,110 — 
Other debt securities18,687 — 18,687 — 
Bank-issued trust preferred securities1,249 — 1,249 — 
Equity securities74 74 — — 
Derivative instruments, interest rate swaps66 — 66 — 
Total$218,792 $4,989 $213,803 $— 
Liabilities:
Derivative instruments, interest rate swaps$89 $— $89 $— 
Total$89 $— $89 $— 
December 31, 2023
Assets:
U.S. Treasury$1,978 $1,978 $— $— 
U.S. government and federal agency obligations427 — 427 — 
U.S. government-sponsored enterprises21,822 — 21,822 — 
Obligations of states and political subdivisions106,885 — 106,885 — 
Mortgage-backed securities45,640 — 45,640 — 
Other debt securities10,821 — 10,821 — 
Bank-issued trust preferred securities1,169 — 1,169 — 
Equity securities78 78 — — 
Interest rate lock commitments43 — — 43 
Loans held for sale3,884 — 3,884 — 
Mortgage servicing rights1,738 — — 1,738 
Total$194,485 $2,056 $190,648 $1,781 
Liabilities:
Interest rate lock commitments$2 $— $— $2 
Forward sale commitments41 — 41 — 
Total$43 $— $41 $2 
Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
(dollars in thousands)
Mortgage Servicing Rights
Interest Rate Lock Commitments
Balance at December 31, 2022
$2,899 $2 
Total (losses) or gains (realized/unrealized):
Included in earnings(1,200)(35)
Included in other comprehensive income— — 
Purchases— — 
Sales— (169)
Issues39 243 
Settlements— — 
Balance at December 31, 2023
$1,738 $41 
Total (losses) or gains (realized/unrealized):
Included in earnings(68)(11)
Included in other comprehensive income— — 
Purchases— — 
Sales(1,670)(86)
Issues— 56 
Settlements— — 
Balance at December 31, 2024
$— $— 
Schedule of Valuation Methods for Instruments Measured at Fair Value on a Nonrecurring Basis
Fair Value Measurements Using
(dollars in thousands)Total
Fair Value		Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total Gains
(Losses)*
December 31, 2024
Assets:
Collateral dependent loans:
Commercial, financial, & agricultural$641 $— $— $641 $(1,931)
Real estate construction - residential260 — — 260 — 
Real estate mortgage - residential— — — — (50)
Real estate mortgage - commercial65 — — 65 (436)
Total$966 $— $— $966 $(2,417)
Other real estate and repossessed assets$546 $— $— $546 $875 
December 31, 2023
Assets:
Collateral dependent loans:
Commercial, financial, & agricultural$921 $— $— $921 $(76)
Real estate construction - residential268 — — 268 — 
Real estate mortgage - residential27 — — 27 (88)
Real estate mortgage - commercial$2,369 $— $— $2,369 $(32)
Total$3,585 $— $— $3,585 $(196)
Other real estate and repossessed assets$1,744 $— $— $1,744 $(4,431)
*Total gains (losses) reported for other real estate owned and repossessed assets includes charge-offs, valuation write-downs, and net losses taken during the periods reported.
v3.25.1
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Carrying Amounts and Fair Values of Financial Instruments
A summary of the carrying amounts and fair values of the Company's financial instruments at December 31, 2024 and 2023 is as follows:
December 31, 2024
Fair Value Measurements
December 31, 2024Quoted Prices
in Active
Markets for
Identical		Other
Observable		Net
Significant
Unobservable
(dollars in thousands)Carrying
amount		Fair
value		Assets
(Level 1)		Inputs
(Level 2)		Inputs
(Level 3)
Assets:
Cash and due from banks$23,668 $23,668 $23,668 $— $— 
Federal funds sold and overnight interest-bearing deposits27,326 27,326 27,326 — — 
Certificates of deposit in other banks1,000 1,000 1,000 — — 
Other investment securities5,149 5,149 74 5,075 — 
Loans, net1,444,116 1,380,252 — — 1,380,252 
Accrued interest receivable8,221 8,221 8,221 — — 
Liabilities:
Deposits:
Non-interest bearing demand$385,022 $385,022 $385,022 $— $— 
Savings, interest checking and money market846,339 846,339 846,339 — — 
Time deposits301,821 300,386 — — 300,386 
FHLB advances and other borrowings81,525 81,585 — 81,585 — 
Subordinated notes49,486 41,602 — 41,602 — 
Accrued interest payable1,754 1,754 1,754 — — 
December 31, 2023
Fair Value Measurements
December 31, 2023Quoted Prices
in Active
Markets for
Identical		Other
Observable		Net
Significant
Unobservable
(dollars in thousands)Carrying
amount		Fair
value		Assets
(Level 1)		Inputs
(Level 2)		Inputs
(Level 3)
Assets:
Cash and due from banks$15,675 $15,675 $15,675 $— $— 
Federal funds sold and overnight interest-bearing deposits77,775 77,775 77,775 — — 
Other investment securities6,300 6,300 78 6,222 — 
Loans, net1,515,403 1,364,533 — — 1,364,533 
Loans held for sale3,884 3,884 — 3,884 — 
Accrued interest receivable8,661 8,661 8,661 — — 
Liabilities:
Deposits:
Non-interest bearing demand$402,241 $402,241 $402,241 $— $— 
Savings, interest checking and money market846,452 846,452 846,452 — — 
Time deposits322,151 319,929 — — 319,929 
FHLB advances and other borrowings107,000 107,245 — 107,245 — 
Subordinated notes49,486 38,939 — 38,939 — 
Accrued interest payable1,772 1,772 1,772 — — 
v3.25.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Contractual Amount of Off-Balance-Sheet Financial Instruments
The contractual amount of off-balance-sheet financial instruments as of December 31, 2024 and 2023 is as follows:
(dollars in thousands)20242023
Commitments to extend credit$305,811 $286,939 
Interest rate lock commitments— 3,694 
Forward sale commitments— 3,779 
Standby letters of credit141,807 111,631 
Total$447,618 $406,043 
v3.25.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The table below highlights the Company’s revenues, expenses and net income (loss) for each reportable segment and is reconciled to net income (loss) on a consolidated basis for the years ended December 31, 2024, 2023, and 2022 was as follows:
(dollars in thousands)Hawthorn BankNon-BanksTotal
Year ended December 31, 2024
Operating revenue
Interest income$95,234 $117 $95,351 
Interest expense32,859 3,899 36,758 
Net interest income$62,375 $(3,782)$58,593 
Provision for credit losses1,027 — 1,027 
Operating expenses
Salaries and employee benefits$25,238 1,340 26,578 
Occupancy, furniture and equipment expense4,555 — 4,555 
Processing, network, and bank card expense5,530 — 5,530 
Legal, examination, and professional fees2,273 335 2,608 
Depreciation and amortization1,715 — 1,715 
Other7,723 815 8,538 
Total operating expenses$47,034 $2,490 $49,524 
Other
Non-interest income13,382 938 14,320 
Investment securities losses, net(4)— (4)
Income taxes5,827 (1,725)4,102 
Net income$21,865 $(3,609)$18,256 
Segment assets$1,812,168 $13,017 $1,825,185 
(dollars in thousands)Hawthorn BankNon-BanksTotal
Year ended December 31, 2023
Operating revenue
Interest income$91,743 $225 $91,968 
Interest expense29,052 3,774 32,826 
Net interest income$62,691 $(3,549)$59,142 
Provision for credit losses2,340 — 2,340 
Operating expenses
Salaries and employee benefits$27,830 1,141 28,971 
Occupancy, furniture and equipment expense4,040 1 4,041 
Processing, network, and bank card expense5,151 — 5,151 
Legal, examination, and professional fees2,006 502 2,508 
Depreciation and amortization2,214 — 2,214 
Other9,761 (287)9,474 
Total operating expenses$51,002 $1,357 $52,359 
Other
Non-interest income7,416 120 7,536 
Investment securities losses, net(11,500)(47)(11,547)
Income taxes698 (1,222)(524)
Net income$4,567 $(3,611)$956 
Segment assets$1,867,686 $7,664 $1,875,350 
(dollars in thousands)Hawthorn BankNon-BanksTotal
Year ended December 31, 2022
Operating revenue
Interest income$69,155 $101 $69,256 
Interest expense8,421 2,072 10,493 
Net interest income$60,734 $(1,971)$58,763 
Provision for credit losses(900)— (900)
Operating expenses
Salaries and employee benefits$25,077 1,981 27,058 
Occupancy, furniture and equipment expense3,931 (1)3,930 
Processing, network, and bank card expense4,788 — 4,788 
Legal, examination, and professional fees1,318 312 1,630 
Depreciation and amortization2,299 — 2,299 
Other9,428 (595)8,833 
Total operating expenses$46,841 $1,697 $48,538 
Other
Non-interest income13,147 831 13,978 
Investment securities losses, net(14)— (14)
Income taxes5,193 (855)4,338 
Net income$22,733 $(1,982)$20,751 
Segment assets$1,913,990 $9,550 $1,923,540 
v3.25.1
Condensed Financial Information of the Parent Company Only (Tables)
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Schedule of Condensed Balance Sheets
Following are the condensed financial statements of Hawthorn Bancshares, Inc. (Parent only) as of and for the years indicated:
Condensed Balance Sheets
December 31,
(dollars in thousands)20242023
Assets
Cash and due from bank subsidiaries$15,273 $6,807 
Investment in bank-issued trust preferred securities1,249 1,169 
Investment in subsidiaries173,916 175,273 
Other assets13,797 6,187 
Total assets$204,235 $189,436 
Liabilities and Stockholders’ Equity
Subordinated notes$49,486 $49,486 
Deferred tax liability1,981 735 
Other liabilities3,221 3,130 
Stockholders’ equity149,547 136,085 
Total liabilities and stockholders’ equity$204,235 $189,436 
Schedule of Condensed Statements of Income
Condensed Statements of Income
For the Years Ended December 31,
(dollars in thousands)202420232022
Income
Interest and dividends received from subsidiaries$20,117 $10,158 $11,497 
Other1,581 1,390 1,108 
Total income21,698 11,548 12,605 
Expenses
Interest on subordinated notes3,899 3,774 2,072 
Other2,875 2,771 3,191 
Total expenses6,774 6,545 5,263 
Income before income tax benefit and equity in undistributed income of subsidiaries14,924 5,003 7,342 
Income tax benefit1,672 1,058 859 
Equity in undistributed (loss) income of subsidiaries1,660 (5,105)12,550 
Net income$18,256 $956 $20,751 
Schedule of Condensed Statements of Cash Flows
Condensed Statements of Cash Flows
For the Years Ended December 31,
(dollars in thousands)202420232022
Cash flows from operating activities:
Net income$18,256 $956 $20,751 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries(1,660)5,105 (12,550)
(Increase) decrease in other assets(1,418)1,486 540 
(Decrease) increase in other liabilities(215)(262)— 
Other, net$(331)$(5,868)$(1,060)
Net cash provided by operating activities$14,632 $1,417 $7,681 
Cash flows from investing activities:
Decrease in investment in subsidiaries, net$— $7,575 $110 
Net cash provided by investing activities$— $7,575 $110 
Cash flows from financing activities:
Cash dividends paid - common stock$(5,047)$(4,649)$(4,240)
Purchase of treasury stock(1,119)— (2,892)
Net cash used in financing activities$(6,166)$(4,649)$(7,132)
Net increase in cash and due from banks$8,466 $4,343 $659 
Cash and due from banks at beginning of year6,807 2,464 1,805 
Cash and due from banks at end of year$15,273 $6,807 $2,464 
v3.25.1
Summary of Significant Accounting Policies (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Summary Of Significant Accounting Policies        
Loans held for sale $ 0 $ 3,884,000    
Credit losses on unfunded commitments $ 22,044,000 23,744,000 $ 15,588,000 $ 16,903,000
Period of employees highest compensation before retirement 10 years      
Tax liabilities related to uncertain tax positions $ 0 0 $ 0  
Unfunded Loan Commitment        
Summary Of Significant Accounting Policies        
Credit losses on unfunded commitments $ 900,000 $ 900,000    
Buildings and improvements | Minimum        
Summary Of Significant Accounting Policies        
Estimated useful lives 5 years      
Buildings and improvements | Maximum        
Summary Of Significant Accounting Policies        
Estimated useful lives 40 years      
Furniture and Fixtures | Minimum        
Summary Of Significant Accounting Policies        
Estimated useful lives 3 years      
Furniture and Fixtures | Maximum        
Summary Of Significant Accounting Policies        
Estimated useful lives 15 years      
Federal Home Loan Bank of Des Moines        
Summary Of Significant Accounting Policies        
Basis points 0.0006      
Investment in capital stock of Federal Home Loan Bank required percentage of advances (in percent) 4.50%      
v3.25.1
Loans and Allowance for Credit Losses - Summary of Loans by Major Class (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans and Allowance for Loan Losses    
Loans held for investment $ 1,466,160 $ 1,539,147
Commercial, financial, and agricultural    
Loans and Allowance for Loan Losses    
Loans held for investment 202,329 226,275
Real Estate Construction - Residential    
Loans and Allowance for Loan Losses    
Loans held for investment 32,046 58,347
Real Estate Construction - Commercial    
Loans and Allowance for Loan Losses    
Loans held for investment 80,435 130,296
Real Estate Mortgage - Residential    
Loans and Allowance for Loan Losses    
Loans held for investment 361,735 372,391
Real estate mortgage − commercial    
Loans and Allowance for Loan Losses    
Loans held for investment 775,594 731,024
Installment and other consumer    
Loans and Allowance for Loan Losses    
Loans held for investment $ 14,021 $ 20,814
v3.25.1
Loans and Allowance for Credit Losses - Loans Pledged (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]    
Financing receivable accrued interest after allowance for credit loss statemen of financial position extensible list not disclosed flag Accrued interest on loans Accrued interest on loans
Accrued interest on loans $ 6,500 $ 7,200
Net loans 1,444,116 $ 1,515,403
Asset Pledged as Collateral without Right | FHLB advances    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Net loans $ 746,300  
v3.25.1
Loans and Allowance for Credit Losses - Schedule of Loans to Directors and Executive Officers (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Loans and Leases Receivable, Related Parties [Roll Forward]  
Beginning balance $ 9,597
New loans 9,452
Amounts collected (6,474)
Ending balance $ 12,575
v3.25.1
Loans and Allowance for Credit Losses - CECL (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]        
Provision for (release of) credit losses [1] $ 1,025 $ 2,665 $ (900)  
Liability for unfunded commitments $ 22,044 23,744 $ 15,588 $ 16,903
Adoption of ASU 2016-13        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Liability for unfunded commitments   $ 5,793    
[1] Prior to adoption of ASU No 2016-13 on January 1, 2023, credit losses were estimated using the incurred loss approach.
v3.25.1
Loans and Allowance for Credit Losses - Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Summary of the allowance for loan losses      
Balance at beginning of period $ 23,744 $ 15,588 $ 16,903
Charge-offs (2,991) (628) (637)
Recoveries 266 326 222
Provision for (release of) credit losses [1] 1,025 2,665 (900)
Balance at end of period 22,044 23,744 15,588
Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period 5,793    
Balance at end of period   5,793  
Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period 21,381    
Balance at end of period   21,381  
Commercial, financial, and agricultural      
Summary of the allowance for loan losses      
Balance at beginning of period 3,208 2,735 2,717
Charge-offs (2,238) (161) (135)
Recoveries 118 192 56
Provision for (release of) credit losses 472 1,091 97
Balance at end of period 1,560 3,208 2,735
Commercial, financial, and agricultural | Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period (649)    
Balance at end of period   (649)  
Commercial, financial, and agricultural | Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period 2,086    
Balance at end of period   2,086  
Real Estate Construction - Residential      
Summary of the allowance for loan losses      
Balance at beginning of period 1,043 157 137
Charge-offs 0 0 0
Recoveries 0 0 0
Provision for (release of) credit losses (465) 595 20
Balance at end of period 578 1,043 157
Real Estate Construction - Residential | Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period 291    
Balance at end of period   291  
Real Estate Construction - Residential | Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period 448    
Balance at end of period   448  
Real Estate Construction - Commercial      
Summary of the allowance for loan losses      
Balance at beginning of period 3,273 875 588
Charge-offs 0 0 0
Recoveries 27 22 22
Provision for (release of) credit losses (1,079) (518) 265
Balance at end of period 2,221 3,273 875
Real Estate Construction - Commercial | Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period 2,894    
Balance at end of period   2,894  
Real Estate Construction - Commercial | Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period 3,769    
Balance at end of period   3,769  
Real Estate Mortgage - Residential      
Summary of the allowance for loan losses      
Balance at beginning of period 5,264 3,329 2,482
Charge-offs (51) (88) 0
Recoveries 13 23 45
Provision for (release of) credit losses 84 110 802
Balance at end of period 5,310 5,264 3,329
Real Estate Mortgage - Residential | Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period 1,890    
Balance at end of period   1,890  
Real Estate Mortgage - Residential | Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period 5,219    
Balance at end of period   5,219  
Real Estate Mortgage - Commercial      
Summary of the allowance for loan losses      
Balance at beginning of period 10,537 8,000 10,662
Charge-offs (437) (32) (181)
Recoveries 0 4 11
Provision for (release of) credit losses 2,205 952 (2,492)
Balance at end of period 12,305 10,537 8,000
Real Estate Mortgage - Commercial | Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period 1,613    
Balance at end of period   1,613  
Real Estate Mortgage - Commercial | Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period 9,613    
Balance at end of period   9,613  
Installment and other consumer      
Summary of the allowance for loan losses      
Balance at beginning of period 232 326 256
Charge-offs (265) (347) (321)
Recoveries 108 85 88
Provision for (release of) credit losses 63 248 303
Balance at end of period 138 232 326
Installment and other consumer | Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period (80)    
Balance at end of period   (80)  
Installment and other consumer | Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period 246    
Balance at end of period   246  
Unallocated Financing Receivables      
Summary of the allowance for loan losses      
Balance at beginning of period 187 166 61
Charge-offs 0 0 0
Recoveries 0 0 0
Provision for (release of) credit losses (255) 187 105
Balance at end of period (68) 187 $ 166
Unallocated Financing Receivables | Adoption of ASU 2016-13      
Summary of the allowance for loan losses      
Balance at beginning of period (166)    
Balance at end of period   (166)  
Unallocated Financing Receivables | Balance, January 01, 2023      
Summary of the allowance for loan losses      
Balance at beginning of period $ 0    
Balance at end of period   $ 0  
[1] Prior to adoption of ASU No 2016-13 on January 1, 2023, credit losses were estimated using the incurred loss approach.
v3.25.1
Loans and Allowance for Credit Losses - Collateral Loan (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated $ 22,044 $ 23,744 $ 15,588 $ 16,903
Commercial, financial, and agricultural        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated 1,560 3,208 2,735 2,717
Real Estate Construction - Residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated 578 1,043 157 137
Real estate mortgage − residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated 5,310 5,264 3,329 2,482
Real estate mortgage − commercial        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated 12,305 10,537 $ 8,000 $ 10,662
Real Estate        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 519 2,847    
Real Estate | Commercial, financial, and agricultural        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 0 0    
Real Estate | Real Estate Construction - Residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 454 432    
Real Estate | Real estate mortgage − residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment   46    
Real Estate | Real estate mortgage − commercial        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 65 2,369    
Other        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 766 2,221    
Other | Commercial, financial, and agricultural        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 766 2,221    
Other | Real Estate Construction - Residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 0 0    
Other | Real estate mortgage − residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment   0    
Other | Real estate mortgage − commercial        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Impaired loans individually evaluated for impairment 0 0    
Allowance Allocated        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated 319 1,483    
Allowance Allocated | Commercial, financial, and agricultural        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated 125 1,300    
Allowance Allocated | Real Estate Construction - Residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated 194 164    
Allowance Allocated | Real estate mortgage − residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated   19    
Allowance Allocated | Real estate mortgage − commercial        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Allowance Allocated $ 0 $ 0    
v3.25.1
Loans and Allowance for Credit Losses - Credit Quality (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one $ 214,663 $ 321,352  
Year two 210,937 467,922  
Year three 389,320 348,589  
Year four 287,127 167,176  
Year five 140,045 40,673  
Prior 89,649 69,913  
Revolving Loans Amortized Cost Basis 130,191 121,149  
Revolving Loans Converted to Term Loans Amortized Cost Basis 4,228 2,373  
Total 1,466,160 1,539,147  
Current fiscal year, charge-offs 10 84  
Fiscal year before current fiscal year, charge-offs 581 24  
Two year before current fiscal year, charge-offs 9 7  
Three year before current fiscal year, charge-offs 172 75  
Four year before current fiscal year, charge-offs 3 0  
Prior, charge-offs 382 424  
Revolving loans, charge-offs 1,834 14  
Revolving, converted to term loan, charge-offs 0 0  
Total charge-offs 2,991 628 $ 637
Pass      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 177,677 300,974  
Year two 210,451 450,025  
Year three 373,267 328,324  
Year four 284,058 165,714  
Year five 139,276 40,119  
Prior 88,093 66,694  
Revolving Loans Amortized Cost Basis 128,312 116,289  
Revolving Loans Converted to Term Loans Amortized Cost Basis 3,244 1,074  
Total 1,404,378 1,469,213  
Watch      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 8,911 16,873  
Year two 295 13,751  
Year three 6,289 3,180  
Year four 2,352 970  
Year five 423 419  
Prior 1,121 2,489  
Revolving Loans Amortized Cost Basis 534 2,698  
Revolving Loans Converted to Term Loans Amortized Cost Basis 581 0  
Total 20,506 40,380  
Special Mention      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 27,271    
Year two 0    
Year three 5,679    
Year four 0    
Year five 309    
Prior 0    
Revolving Loans Amortized Cost Basis 741    
Revolving Loans Converted to Term Loans Amortized Cost Basis 0    
Total 34,000    
Substandard      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 1,097  
Year two 29 3,973  
Year three 3,581 15,963  
Year four 628 145  
Year five 0 45  
Prior 98 415  
Revolving Loans Amortized Cost Basis 0 323  
Revolving Loans Converted to Term Loans Amortized Cost Basis 403 1,299  
Total 4,739 23,260  
Doubtful      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0    
Year two 0    
Year three 0    
Year four 0    
Year five 0    
Prior 0    
Revolving Loans Amortized Cost Basis 79    
Revolving Loans Converted to Term Loans Amortized Cost Basis 0    
Total 79    
Non-accrual loans      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 804 2,408  
Year two 162 173  
Year three 504 1,122  
Year four 89 347  
Year five 37 90  
Prior 337 315  
Revolving Loans Amortized Cost Basis 525 1,839  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 2,458 6,294  
Commercial, financial, and agricultural      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 23,012 40,634  
Year two 21,509 49,441  
Year three 34,926 33,180  
Year four 25,966 31,567  
Year five 26,903 4,784  
Prior 4,194 5,304  
Revolving Loans Amortized Cost Basis 63,885 59,853  
Revolving Loans Converted to Term Loans Amortized Cost Basis 1,934 1,512  
Total 202,329 226,275  
Current fiscal year, charge-offs 0 0  
Fiscal year before current fiscal year, charge-offs 230 1  
Two year before current fiscal year, charge-offs 0 0  
Three year before current fiscal year, charge-offs 104 0  
Four year before current fiscal year, charge-offs 2 0  
Prior, charge-offs 106 160  
Revolving loans, charge-offs 1,796 0  
Revolving, converted to term loan, charge-offs 0 0  
Total charge-offs 2,238 161 135
Commercial, financial, and agricultural | Pass      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 22,726 40,103  
Year two 21,302 43,082  
Year three 30,025 32,812  
Year four 25,338 30,965  
Year five 26,557 4,774  
Prior 3,932 5,022  
Revolving Loans Amortized Cost Basis 62,205 55,379  
Revolving Loans Converted to Term Loans Amortized Cost Basis 1,531 213  
Total 193,616 212,350  
Commercial, financial, and agricultural | Watch      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 1  
Year two 120 2,505  
Year three 1,473 32  
Year four 0 586  
Year five 0 3  
Prior 262 282  
Revolving Loans Amortized Cost Basis 504 2,502  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 2,359 5,911  
Commercial, financial, and agricultural | Special Mention      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0    
Year two 0    
Year three 0    
Year four 0    
Year five 309    
Prior 0    
Revolving Loans Amortized Cost Basis 741    
Revolving Loans Converted to Term Loans Amortized Cost Basis 0    
Total 1,050    
Commercial, financial, and agricultural | Substandard      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 371  
Year two 0 3,758  
Year three 3,350 19  
Year four 628 16  
Year five 0 0  
Prior 0 0  
Revolving Loans Amortized Cost Basis 0 323  
Revolving Loans Converted to Term Loans Amortized Cost Basis 403 1,299  
Total 4,381 5,786  
Commercial, financial, and agricultural | Doubtful      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0    
Year two 0    
Year three 0    
Year four 0    
Year five 0    
Prior 0    
Revolving Loans Amortized Cost Basis 79    
Revolving Loans Converted to Term Loans Amortized Cost Basis 0    
Total 79    
Commercial, financial, and agricultural | Non-accrual loans      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 286 159  
Year two 87 96  
Year three 78 317  
Year four 0 0  
Year five 37 7  
Prior 0 0  
Revolving Loans Amortized Cost Basis 356 1,649  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 844 2,228  
Real Estate Construction - Residential      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 16,822 40,279  
Year two 13,808 17,259  
Year three 601 634  
Year four 617 175  
Year five 165 0  
Prior 0 0  
Revolving Loans Amortized Cost Basis 0 0  
Revolving Loans Converted to Term Loans Amortized Cost Basis 33 0  
Total 32,046 58,347  
Current fiscal year, charge-offs 0 0  
Fiscal year before current fiscal year, charge-offs 0 0  
Two year before current fiscal year, charge-offs 0 0  
Three year before current fiscal year, charge-offs 0 0  
Four year before current fiscal year, charge-offs 0 0  
Prior, charge-offs 0 0  
Revolving loans, charge-offs 0 0  
Revolving, converted to term loan, charge-offs 0 0  
Total charge-offs 0 0 0
Real Estate Construction - Residential | Pass      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 16,368 39,847  
Year two 13,808 17,259  
Year three 601 634  
Year four 617 175  
Year five 165 0  
Prior 0 0  
Revolving Loans Amortized Cost Basis 0 0  
Revolving Loans Converted to Term Loans Amortized Cost Basis 33 0  
Total 31,592 57,915  
Real Estate Construction - Residential | Non-accrual loans      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 454 432  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving Loans Amortized Cost Basis 0 0  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 454 432  
Real Estate Construction - Commercial      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 50,653 50,685  
Year two 7,210 53,075  
Year three 10,437 24,371  
Year four 3,828 1,040  
Year five 622 31  
Prior 613 804  
Revolving Loans Amortized Cost Basis 7,072 290  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 80,435 130,296  
Current fiscal year, charge-offs 0 0  
Fiscal year before current fiscal year, charge-offs 0 0  
Two year before current fiscal year, charge-offs 0 0  
Three year before current fiscal year, charge-offs 0 0  
Four year before current fiscal year, charge-offs 0 0  
Prior, charge-offs 0 0  
Revolving loans, charge-offs 0 0  
Revolving, converted to term loan, charge-offs 0 0  
Total charge-offs 0 0 0
Real Estate Construction - Commercial | Pass      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 49,742 49,041  
Year two 7,057 53,058  
Year three 10,424 24,371  
Year four 3,828 1,040  
Year five 622 31  
Prior 564 735  
Revolving Loans Amortized Cost Basis 7,072 187  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 79,309 128,463  
Real Estate Construction - Commercial | Watch      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 911 934  
Year two 124 17  
Year three 13 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving Loans Amortized Cost Basis 0 103  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 1,048 1,054  
Real Estate Construction - Commercial | Substandard      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 710  
Year two 29 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving Loans Amortized Cost Basis 0 0  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 29 710  
Real Estate Construction - Commercial | Non-accrual loans      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 49 69  
Revolving Loans Amortized Cost Basis 0 0  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 49 69  
Real Estate Mortgage - Residential      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 35,707 65,667  
Year two 46,795 121,704  
Year three 116,394 63,502  
Year four 49,999 48,441  
Year five 42,459 7,313  
Prior 24,491 20,875  
Revolving Loans Amortized Cost Basis 44,347 44,687  
Revolving Loans Converted to Term Loans Amortized Cost Basis 1,543 202  
Total 361,735 372,391  
Current fiscal year, charge-offs 0 0  
Fiscal year before current fiscal year, charge-offs 0 0  
Two year before current fiscal year, charge-offs 0 0  
Three year before current fiscal year, charge-offs 0 75  
Four year before current fiscal year, charge-offs 0 0  
Prior, charge-offs 14 0  
Revolving loans, charge-offs 37 13  
Revolving, converted to term loan, charge-offs 0 0  
Total charge-offs 51 88 0
Real Estate Mortgage - Residential | Pass      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 30,005 65,472  
Year two 46,795 121,430  
Year three 115,928 62,998  
Year four 49,519 47,884  
Year five 42,036 7,242  
Prior 23,440 19,193  
Revolving Loans Amortized Cost Basis 44,148 44,574  
Revolving Loans Converted to Term Loans Amortized Cost Basis 1,543 202  
Total 353,414 368,995  
Real Estate Mortgage - Residential | Watch      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 5,702 179  
Year two 0 251  
Year three 40 411  
Year four 391 293  
Year five 423 71  
Prior 675 1,310  
Revolving Loans Amortized Cost Basis 30 23  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 7,261 2,538  
Real Estate Mortgage - Residential | Substandard      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 16  
Year two 0 0  
Year three 0 0  
Year four 0 129  
Year five 0 0  
Prior 98 126  
Revolving Loans Amortized Cost Basis 0 0  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 98 271  
Real Estate Mortgage - Residential | Non-accrual loans      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 0  
Year two 0 23  
Year three 426 93  
Year four 89 135  
Year five 0 0  
Prior 278 246  
Revolving Loans Amortized Cost Basis 169 90  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 962 587  
Real Estate Mortgage - Commercial      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 86,281 116,657  
Year two 117,979 219,946  
Year three 223,371 224,182  
Year four 205,552 84,666  
Year five 69,342 27,558  
Prior 57,536 41,127  
Revolving Loans Amortized Cost Basis 14,815 16,229  
Revolving Loans Converted to Term Loans Amortized Cost Basis 718 659  
Total 775,594 731,024  
Current fiscal year, charge-offs 0 0  
Fiscal year before current fiscal year, charge-offs 340 0  
Two year before current fiscal year, charge-offs 0 0  
Three year before current fiscal year, charge-offs 65 0  
Four year before current fiscal year, charge-offs 0 0  
Prior, charge-offs 32 32  
Revolving loans, charge-offs 0 0  
Revolving, converted to term loan, charge-offs 0 0  
Total charge-offs 437 32 181
Real Estate Mortgage - Commercial | Pass      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 56,648 99,081  
Year two 117,853 208,699  
Year three 212,698 204,789  
Year four 203,591 84,363  
Year five 69,342 27,085  
Prior 57,352 39,941  
Revolving Loans Amortized Cost Basis 14,815 16,059  
Revolving Loans Converted to Term Loans Amortized Cost Basis 137 659  
Total 732,436 680,676  
Real Estate Mortgage - Commercial | Watch      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 2,298 15,759  
Year two 51 10,978  
Year three 4,763 2,737  
Year four 1,961 91  
Year five 0 345  
Prior 184 897  
Revolving Loans Amortized Cost Basis 0 70  
Revolving Loans Converted to Term Loans Amortized Cost Basis 581 0  
Total 9,838 30,877  
Real Estate Mortgage - Commercial | Special Mention      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 27,271    
Year two 0    
Year three 5,679    
Year four 0    
Year five 0    
Prior 0    
Revolving Loans Amortized Cost Basis 0    
Revolving Loans Converted to Term Loans Amortized Cost Basis 0    
Total 32,950    
Real Estate Mortgage - Commercial | Substandard      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0 0  
Year two 0 215  
Year three 231 15,944  
Year four 0 0  
Year five 0 45  
Prior 0 289  
Revolving Loans Amortized Cost Basis 0 0  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 231 16,493  
Real Estate Mortgage - Commercial | Non-accrual loans      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 64 1,817  
Year two 75 54  
Year three 0 712  
Year four 0 212  
Year five 0 83  
Prior 0 0  
Revolving Loans Amortized Cost Basis 0 100  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 139 2,978  
Installment and other consumer      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 2,188 7,430  
Year two 3,636 6,497  
Year three 3,591 2,720  
Year four 1,165 1,287  
Year five 554 987  
Prior 2,815 1,803  
Revolving Loans Amortized Cost Basis 72 90  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 14,021 20,814  
Current fiscal year, charge-offs 10 84  
Fiscal year before current fiscal year, charge-offs 11 23  
Two year before current fiscal year, charge-offs 9 7  
Three year before current fiscal year, charge-offs 3 0  
Four year before current fiscal year, charge-offs 1 0  
Prior, charge-offs 230 232  
Revolving loans, charge-offs 1 1  
Revolving, converted to term loan, charge-offs 0 0  
Total charge-offs 265 347 $ 321
Installment and other consumer | Pass      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 2,188 7,430  
Year two 3,636 6,497  
Year three 3,591 2,720  
Year four 1,165 1,287  
Year five 554 987  
Prior 2,805 1,803  
Revolving Loans Amortized Cost Basis 72 90  
Revolving Loans Converted to Term Loans Amortized Cost Basis 0 0  
Total 14,011 $ 20,814  
Installment and other consumer | Non-accrual loans      
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment      
Year one 0    
Year two 0    
Year three 0    
Year four 0    
Year five 0    
Prior 10    
Revolving Loans Amortized Cost Basis 0    
Revolving Loans Converted to Term Loans Amortized Cost Basis 0    
Total $ 10    
v3.25.1
Loans and Allowance for Credit Losses - Non-accrual Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Non-accrual $ 2,537 $ 6,294
90 Days Past Due And Still Accruing 210 119
Commercial, financial, and agricultural    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Non-accrual 923 2,228
90 Days Past Due And Still Accruing 0 0
Real estate construction − residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Non-accrual 454 432
90 Days Past Due And Still Accruing 0 0
Real Estate Construction - Commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Non-accrual 49 69
90 Days Past Due And Still Accruing 0 0
Real estate mortgage − residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Non-accrual 963 587
90 Days Past Due And Still Accruing 207 115
Real estate mortgage − commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Non-accrual 138 2,978
90 Days Past Due And Still Accruing 0 0
Installment and other consumer    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total Non-accrual 10 0
90 Days Past Due And Still Accruing 3 4
Non-performing TDRs - 90 days past due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Non-accrual with no Allowance 0 2,368
Non-accrual with Allowance 2,537 3,926
Total Non-accrual 2,537 6,294
90 Days Past Due And Still Accruing 210 119
Total Non-performing Loans 2,747 6,413
Non-performing TDRs - 90 days past due | Commercial, financial, and agricultural    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Non-accrual with no Allowance 0 0
Non-accrual with Allowance 923 2,228
Total Non-accrual 923 2,228
90 Days Past Due And Still Accruing 0 0
Total Non-performing Loans 923 2,228
Non-performing TDRs - 90 days past due | Real estate construction − residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Non-accrual with no Allowance 0 0
Non-accrual with Allowance 454 432
Total Non-accrual 454 432
90 Days Past Due And Still Accruing 0 0
Total Non-performing Loans 454 432
Non-performing TDRs - 90 days past due | Real Estate Construction - Commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Non-accrual with no Allowance 0 0
Non-accrual with Allowance 49 69
Total Non-accrual 49 69
90 Days Past Due And Still Accruing 0 0
Total Non-performing Loans 49 69
Non-performing TDRs - 90 days past due | Real estate mortgage − residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Non-accrual with no Allowance 0 0
Non-accrual with Allowance 963 587
Total Non-accrual 963 587
90 Days Past Due And Still Accruing 207 115
Total Non-performing Loans 1,170 702
Non-performing TDRs - 90 days past due | Real estate mortgage − commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Non-accrual with no Allowance 0 2,368
Non-accrual with Allowance 138 610
Total Non-accrual 138 2,978
90 Days Past Due And Still Accruing 0 0
Total Non-performing Loans 138 2,978
Non-performing TDRs - 90 days past due | Installment and other consumer    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Non-accrual with no Allowance 0 0
Non-accrual with Allowance 10 0
Total Non-accrual 10 0
90 Days Past Due And Still Accruing 3 4
Total Non-performing Loans $ 13 $ 4
v3.25.1
Loans and Allowance for Credit Losses - Past Due and Non-accrual Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Aging information for the Company's past due and non-accrual loans    
Loans held for investment $ 1,466,160 $ 1,539,147
90 Days Past Due And Still Accruing 210 119
Non-Accrual 2,537 6,294
Current or Less Than 30 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 1,459,390 1,529,232
30 - 89 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 4,023 3,502
Commercial, financial, and agricultural    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 202,329 226,275
90 Days Past Due And Still Accruing 0 0
Non-Accrual 923 2,228
Commercial, financial, and agricultural | Current or Less Than 30 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 201,201 223,845
Commercial, financial, and agricultural | 30 - 89 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 205 202
Real estate construction − residential    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 32,046 58,347
90 Days Past Due And Still Accruing 0 0
Non-Accrual 454 432
Real estate construction − residential | Current or Less Than 30 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 31,592 57,568
Real estate construction − residential | 30 - 89 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 0 347
Real Estate Construction, Commercial [Member]    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 80,435 130,296
90 Days Past Due And Still Accruing 0 0
Non-Accrual 49 69
Real Estate Construction, Commercial [Member] | Current or Less Than 30 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 80,386 130,227
Real Estate Construction, Commercial [Member] | 30 - 89 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 0 0
Real estate mortgage − residential    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 361,735 372,391
90 Days Past Due And Still Accruing 207 115
Non-Accrual 963 587
Real estate mortgage − residential | Current or Less Than 30 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 358,393 368,956
Real estate mortgage − residential | 30 - 89 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 2,172 2,733
Real estate mortgage − commercial    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 775,594 731,024
90 Days Past Due And Still Accruing 0 0
Non-Accrual 138 2,978
Real estate mortgage − commercial | Current or Less Than 30 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 773,918 728,029
Real estate mortgage − commercial | 30 - 89 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 1,538 17
Installment and other consumer    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 14,021 20,814
90 Days Past Due And Still Accruing 3 4
Non-Accrual 10 0
Installment and other consumer | Current or Less Than 30 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment 13,900 20,607
Installment and other consumer | 30 - 89 Days Past Due    
Aging information for the Company's past due and non-accrual loans    
Loans held for investment $ 108 $ 203
v3.25.1
Loans and Allowance for Credit Losses - TDRs and Loan Modifications (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Loans held for sale $ 0 $ 3,884
v3.25.1
Other Real Estate and Other Assets Acquired in Settlement of Loans - Schedule of Real Estate and Other Assets Acquired in Settlement of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Summary of real estate and other assets acquired in settlement of loans        
Repossessed assets $ 0 $ 6    
Total 3,449 7,694    
Less valuation allowance for other real estate owned (2,003) (5,950) $ (2,664) $ (2,911)
Total other real estate owned 1,446 1,744    
Real Estate Construction - Commercial | Construction        
Summary of real estate and other assets acquired in settlement of loans        
Real estate acquired through foreclosure 2,549 7,668    
Real Estate Mortgage - Residential | Mortgage        
Summary of real estate and other assets acquired in settlement of loans        
Real estate acquired through foreclosure 42 20    
Real Estate Mortgage - Commercial | Mortgage        
Summary of real estate and other assets acquired in settlement of loans        
Real estate acquired through foreclosure $ 858 $ 0    
v3.25.1
Other Real Estate and Other Assets Acquired in Settlement of Loans - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Other Real Estate [Abstract]    
Consumer mortgage loans secured by residential real estate properties $ 0.3 $ 0.1
v3.25.1
Other Real Estate and Other Assets Acquired in Settlement of Loans - Schedule of Activity in Valuation Allowance for Other Real Estate Owned (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Summary of activity in valuation allowance for other real estate owned in settlement of loans      
Balance, beginning of year $ 5,950 $ 2,664 $ 2,911
Provision for (release of) other real estate owned (127) 4,729 (29)
Charge-offs (3,820) (1,443) (218)
Balance, end of year $ 2,003 $ 5,950 $ 2,664
v3.25.1
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities Available-For-Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost $ 249,558 $ 215,908
Gross Unrealized Gains 126 121
Gross Unrealized Losses (31,032) (27,287)
Fair Value 218,652 188,742
U.S. Treasury    
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost 4,937 1,977
Gross Unrealized Gains 0 1
Gross Unrealized Losses (22) 0
Fair Value 4,915 1,978
U.S. government and federal agency obligations    
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost 408 446
Gross Unrealized Gains 0 0
Gross Unrealized Losses (7) (19)
Fair Value 401 427
US Government-sponsored Enterprises Debt Securities [Member]    
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost 13,020 22,042
Gross Unrealized Gains 11 16
Gross Unrealized Losses (227) (236)
Fair Value 12,804 21,822
Obligations of states and political subdivisions    
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost 125,559 126,396
Gross Unrealized Gains 7 55
Gross Unrealized Losses (23,080) (19,566)
Fair Value 102,486 106,885
Mortgage-backed securities    
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost 84,729 51,736
Gross Unrealized Gains 59 27
Gross Unrealized Losses (6,678) (6,123)
Fair Value 78,110 45,640
Other debt securities    
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost 19,419 11,825
Gross Unrealized Gains 49 22
Gross Unrealized Losses (781) (1,026)
Fair Value 18,687 10,821
Bank issued trust preferred securities    
Amortized cost, gross urealized gains and losses, and fair value of debt securities classified as available-for-sale    
Total Amortized Cost 1,486 1,486
Gross Unrealized Gains 0 0
Gross Unrealized Losses (237) (317)
Fair Value $ 1,249 $ 1,169
v3.25.1
Investment Securities - Securities Pledged (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]    
Debt securities with carrying values, pledged $ 82.4 $ 89.2
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Accrued interest receivable and other assets Accrued interest receivable and other assets
Accrued interest on investments $ 1.6 $ 1.4
v3.25.1
Investment Securities - Schedule of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Amortized Cost    
Due in one year or less $ 4,275  
Due after one year through five years 19,715  
Due after five years through ten years 37,506  
Due after ten years 103,333  
Total 164,829  
Mortgage-backed securities 84,729  
Total Amortized Cost 249,558 $ 215,908
Fair Value    
Due in one year or less 4,270  
Due after one year through five years 19,480  
Due after five years through ten years 34,431  
Due after ten years 82,361  
Total 140,542  
Mortgage-backed securities 78,110  
Fair Value $ 218,652 $ 188,742
v3.25.1
Investment Securities - Schedule of Other Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other securities:    
FHLB stock $ 4,924 $ 6,071
MIB stock 151 151
Equity securities with readily determinable fair values 74 78
Total other investment securities $ 5,149 $ 6,300
v3.25.1
Investment Securities - Schedule of Unrealized Losses (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value    
Less than 12 months $ 51,361 $ 17,428
12 months or more 144,583 155,243
Total Fair Value 195,944 172,671
Unrealized Losses    
Less than 12 months (811) (206)
12 months or more (30,221) (27,081)
Total Unrealized Losses (31,032) (27,287)
U.S. Treasury    
Fair Value    
Less than 12 months 4,915 997
12 months or more 0 0
Total Fair Value 4,915 997
Unrealized Losses    
Less than 12 months (22) 0
12 months or more 0 0
Total Unrealized Losses (22) 0
U.S. government and federal agency obligations    
Fair Value    
Less than 12 months 0 0
12 months or more 401 427
Total Fair Value 401 427
Unrealized Losses    
Less than 12 months 0 0
12 months or more (7) (19)
Total Unrealized Losses (7) (19)
U.S. government-sponsored enterprises    
Fair Value    
Less than 12 months 996 11,995
12 months or more 1,778 1,772
Total Fair Value 2,774 13,767
Unrealized Losses    
Less than 12 months (5) (8)
12 months or more (222) (228)
Total Unrealized Losses (227) (236)
Obligations of states and political subdivisions    
Fair Value    
Less than 12 months 2,791 1,501
12 months or more 98,442 103,283
Total Fair Value 101,233 104,784
Unrealized Losses    
Less than 12 months (163) (158)
12 months or more (22,917) (19,408)
Total Unrealized Losses (23,080) (19,566)
Mortgage-backed securities    
Fair Value    
Less than 12 months 37,759 2,935
12 months or more 33,612 39,793
Total Fair Value 71,371 42,728
Unrealized Losses    
Less than 12 months (563) (40)
12 months or more (6,115) (6,083)
Total Unrealized Losses (6,678) (6,123)
Other debt securities    
Fair Value    
Less than 12 months 4,900 0
12 months or more 9,101 8,799
Total Fair Value 14,001 8,799
Unrealized Losses    
Less than 12 months (58) 0
12 months or more (723) (1,026)
Total Unrealized Losses (781) (1,026)
Bank issued trust preferred securities    
Fair Value    
Less than 12 months 0 0
12 months or more 1,249 1,169
Total Fair Value 1,249 1,169
Unrealized Losses    
Less than 12 months 0 0
12 months or more (237) (317)
Total Unrealized Losses $ (237) $ (317)
v3.25.1
Investment Securities - Narrative (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
security
Dec. 31, 2023
USD ($)
Investments, Debt and Equity Securities [Abstract]    
Number of securities consisted in portfolio | security 398  
Number of securities in loss position | security 375  
Aggregate fair value of securities in loss position $ 195,944 $ 172,671
Loss position for 12 months or longer 144,583 155,243
Aggregate unrealized loss included in accumulated other comprehensive income (loss) $ 31,032 $ 27,287
v3.25.1
Investment Securities - Schedule of Components of Investment Securities Gains and Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Certificates of deposit:      
Investment securities (losses) gains, net $ (4) $ (11,547) $ (14)
Available-for-sale securities:      
Available-for-sale securities:      
Gross realized gains 0 0 0
Gross realized losses 0 (11,562) 0
Credit losses recognized 0 0 0
Certificates of deposit:      
Gross realized gains 0 0 0
Gross realized losses 0 (11,562) 0
Other investment securities:      
Other investment securities:      
Fair value adjustments, net (4) 32 (14)
Certificates of deposit:      
Available-for-sale securities:      
Gross realized gains 0 0 0
Gross realized losses 0 (17) 0
Certificates of deposit:      
Gross realized gains 0 0 0
Gross realized losses $ 0 $ (17) $ 0
v3.25.1
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment    
Total $ 62,333 $ 62,268
Less accumulated depreciation 31,167 30,221
Premises and equipment, net 31,166 32,047
Land and land improvements    
Property, Plant and Equipment    
Total 9,190 9,683
Buildings and improvements    
Property, Plant and Equipment    
Total 36,401 35,195
Furniture and equipment    
Property, Plant and Equipment    
Total 13,675 13,214
Operating leases - right of use asset    
Property, Plant and Equipment    
Total 2,796 2,073
Construction in progress    
Property, Plant and Equipment    
Total $ 271 $ 2,103
v3.25.1
Premises and Equipment - Schedule of Depreciation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 1,650 $ 2,106 $ 2,141
v3.25.1
Intangible Assets - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Changes in fair value:        
Due to changes in model inputs and assumptions $ (1,100)      
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration]   Income from fees Income from fees Income from fees
Mortgage servicing rights valuation write-down 1,100      
Mortgage servicing rights        
Changes in mortgage servicing rights        
Balance at beginning of year   $ 1,738 $ 2,899 $ 2,659
Originated mortgage servicing rights   0 39 64
Sale proceeds   (1,670) 0 0
Changes in fair value:        
Due to changes in model inputs and assumptions   0 (939) 479
Other changes in fair value   (68) (261) (303)
Total changes in fair value   (68) (1,200) 176
Balance at end of year $ 1,738 0 1,738 2,899
Mortgage servicing rights valuation write-down   $ 0 $ 939 $ (479)
v3.25.1
Intangible Assets - Schedule of FV Assumptions (Details) - Mortgage servicing rights
 12 Months Ended
Dec. 31, 2023
Assumptions used in estimating the fair value of mortgage service rights  
Weighted average constant prepayment rate 6.55%
Weighted average note rate 3.52%
Weighted average discount rate 11.00%
Weighted average expected life (in years) 7 years 1 month 6 days
v3.25.1
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Derivatives not designated as hedging instruments
$ in Thousands
Dec. 31, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative Assets $ 66
Derivative Liabilities 89
Interest Rate Swap  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Notional Amount 16,542
Derivative Assets 66
Derivative Liabilities 89
Interest rate lock commitments  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative Assets 0
Derivative Liabilities 0
Forward Contracts  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative Assets 0
Derivative Liabilities $ 0
v3.25.1
Derivative Instruments - Schedule Effect of Changes in Fair Value from Derivative Instruments Not Designated as Hedging Instruments (Details) - Derivatives not designated as hedging instruments
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Gain or (Loss) Recognized in Income on Derivative $ (23)
Client Swaps  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Gain or (Loss) Recognized in Income on Derivative 300
Interest Rate Swap  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Gain or (Loss) Recognized in Income on Derivative (23)
Interest rate lock commitments  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Gain or (Loss) Recognized in Income on Derivative (41)
Forward Contracts  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Gain or (Loss) Recognized in Income on Derivative $ 41
v3.25.1
Derivative Instruments - Narrative (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Obligation to return cash collateral $ 100
Derivative assets termination value 0
Credit Risk Contract  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Fair value of derivatives in a net liability position $ 20
v3.25.1
Deposits - Schedule of Maturities of Total Time Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deposits [Abstract]    
Time deposits with balances > $250,000 $ 100,383 $ 108,147
Brokered deposits 13 $ 161
Due within:    
2025 279,190  
2026 13,356  
2027 6,080  
2028 2,885  
2029 310  
Thereafter 0  
Total $ 301,821  
v3.25.1
Leases - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases    
Operating right-of-use assets $ 1,600  
Operating lease liabilities $ 1,678 $ 1,213
Weighted-average remaining lease term (in years) 5 years 8 months 12 days  
Weighted-average discount rate (as a percent) 4.10%  
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Premises and equipment - net  
Operating lease cost $ 300 $ 400
Minimum    
Leases    
Remaining lease terms (in years) 1 year  
Maximum    
Leases    
Remaining lease terms (in years) 10 years  
v3.25.1
Leases - Schedule of Maturity of Remaining Operating Leases Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Operating Lease    
2025 $ 391  
2026 400  
2027 327  
2028 330  
2029 112  
Thereafter 326  
Total lease payments 1,886  
Less imputed interest (208)  
Total lease liabilities, as reported $ 1,678 $ 1,213
v3.25.1
Borrowings - Schedule of Other Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Year End Balance    
Federal Home Loan Bank advances and other borrowings $ 81,525 $ 107,000
Year End Balance - Total 49,486 49,486
Bank    
Year End Balance    
Federal Home Loan Bank advances and other borrowings 81,400  
FHLB advances | Bank    
Year End Balance    
Maturity year one 40,000 26,000
Maturity year two 23,000 30,000
Maturity year three 7,500 23,000
Maturity year four 0 17,500
Maturity year five 2,925 0
Maturity after year five $ 8,000  
Maturity year six   0
Maturity after year six   $ 10,500
Year End Weighted Rate    
Maturity year one (in percent) 3.37% 3.47%
Maturity year two (in percent) 2.53% 2.89%
Maturity year three (in percent) 2.05% 2.53%
Maturity year four (in percent) 0.00% 3.28%
Maturity year five (in percent) 1.91% 0.00%
Maturity year six (in percent)   0.00%
Maturity, after year six (in percent)   1.61%
Maturity after year five (in percent) 1.41%  
Other | Bank    
Year End Balance    
2031 $ 100 $ 0
Year End Weighted Rate    
Maturity after year five (in percent) 4.42% 0.00%
Subordinated notes due 2034    
Year End Balance    
Year End Balance - Total $ 25,774 $ 25,774
Year End Weighted Rate    
Year end weighted rate (in percent) 7.31% 8.34%
Subordinated notes due 2035    
Year End Balance    
Year End Balance - Total $ 23,712 $ 23,712
Year End Weighted Rate    
Year end weighted rate (in percent) 6.44% 7.47%
v3.25.1
Borrowings - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Mar. 17, 2005
Mar. 17, 2004
Dec. 31, 2024
Dec. 31, 2023
Borrowings        
Federal Home Loan Bank advances and other borrowings     $ 81,525 $ 107,000
Investment in common securities of the trust     1,200 1,200
Subordinated notes     $ 49,486 $ 49,486
Subordinated notes due 2035        
Borrowings        
Year end weighted rate (in percent)     6.44% 7.47%
Subordinated notes     $ 23,712 $ 23,712
Subordinated notes due 2034        
Borrowings        
Year end weighted rate (in percent)     7.31% 8.34%
Subordinated notes     $ 25,774 $ 25,774
Exchange Statutory Trust II        
Borrowings        
Trust preferred securities issued floating rate Trust Preferred Securities (TPS) to a TPS Pool $ 23,000      
Basis spread on variable rate (in percent)     1.83%  
Trust preferred securities, prepayment period 5 years      
Trust preferred securities, period 5 years      
Investment in common securities of the trust $ 700      
Investment in preferred interests of the trust by a third party during the period $ 23,000      
Exchange Statutory Trust I        
Borrowings        
Trust preferred securities issued floating rate Trust Preferred Securities (TPS) to a TPS Pool   $ 25,000    
Basis spread on variable rate (in percent)     2.70%  
Investment in common securities of the trust   $ 800    
Bank        
Borrowings        
Federal Home Loan Bank advances and other borrowings     $ 81,400  
Maximum additional borrowing amount under agreement with FHLB     $ 187,300  
v3.25.1
Income Tax Expense (Benefit) - Schedule of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
Federal $ 3,070 $ 793 $ 4,591
State 0 67 (134)
Total current 3,070 860 4,457
Deferred:      
Federal 1,032 (1,384) (119)
State 0 0 0
Total deferred 1,032 (1,384) (119)
Total income tax expense (benefit) $ 4,102 $ (524) $ 4,338
v3.25.1
Income Tax Expense (Benefit) - Schedule of Applicable Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Effective Income Tax Rate Reconciliation, Amount      
Income before provision for income tax (benefit) $ 22,358 $ 432 $ 25,089
Tax at statutory federal income tax rate 4,695 91 5,269
Tax-exempt income, net (567) (509) (821)
State income tax expense (benefit), net of federal tax expense (benefit) 0 53 (106)
Other, net (26) (159) (4)
Total income tax expense (benefit) $ 4,102 $ (524) $ 4,338
Effective Income Tax Rate Reconciliation, Percent      
Tax at statutory federal income tax rate (in percent) 21.00% 21.00% 21.00%
Tax-exempt income, net (in percent) (2.54%) (117.88%) (3.27%)
State income tax, net of federal tax benefit (in percent) 0.00% 12.25% (0.42%)
Other, net (in percent) (0.11%) (36.86%) (0.02%)
Provision for income tax expense (in percent) 18.35% (121.49%) 17.29%
v3.25.1
Income Tax Expense (Benefit) - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal corporate income tax rate (in percent) 18.35% (121.49%) 17.29%
Federal corporate income tax rate (in percent) 21.00% 21.00% 21.00%
v3.25.1
Income Tax Expense (Benefit) - Schedule of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Allowance for credit losses $ 4,589 $ 4,669
Securities 6,428 5,653
Other real estate owned 421 1,250
Deferred loan fees 450 437
Lease liability 352 255
Accrued / deferred compensation 763 835
Other 497 592
Total deferred tax assets 13,500 13,691
Deferred tax liabilities:    
Premises and equipment 515 319
Mortgage servicing rights 0 365
Deferred loan costs 395 444
Pension 2,424 1,180
Right-of-use asset 343 246
Prepaid expenses 233 187
Other 61 38
Total deferred tax liabilities 3,971 2,779
Net deferred tax assets $ 9,529 $ 10,912
v3.25.1
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss) - (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Stockholders' equity    
Beginning balance $ 136,085 $ 127,411
Other comprehensive income (loss), before reclassifications (4,430) 9,447
Amounts reclassified from accumulated other comprehensive income (loss) 6,100 13,277
Other comprehensive income, before tax 1,670 22,724
Income tax expense (351) (4,772)
Other comprehensive income, net of tax 1,319 17,952
Ending balance 149,547 136,085
Unrealized Income (Loss) on Securities    
Stockholders' equity    
Beginning balance (21,461) (36,657)
Other comprehensive income (loss), before reclassifications (3,740) 10,087
Amounts reclassified from accumulated other comprehensive income (loss) 0 9,148
Other comprehensive income, before tax (3,740) 19,235
Income tax expense 785 (4,039)
Other comprehensive income, net of tax (2,955) 15,196
Ending balance (24,416) (21,461)
Unrecognized Net Pension and Postretirement Costs    
Stockholders' equity    
Beginning balance 7,699 4,943
Other comprehensive income (loss), before reclassifications (690) (640)
Amounts reclassified from accumulated other comprehensive income (loss) 6,100 4,129
Other comprehensive income, before tax 5,410 3,489
Income tax expense (1,136) (733)
Other comprehensive income, net of tax 4,274 2,756
Ending balance 11,973 7,699
Accumulated Other Comprehensive Income (Loss)    
Stockholders' equity    
Beginning balance (13,762) (31,714)
Ending balance $ (12,443) $ (13,762)
v3.25.1
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss) - Shares Issued and Outstanding (Details) - shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Increase (Decrease) in Stockholders' Equity      
Common stock, issued (in shares) 7,554,893    
Treasury stock held (in shares) (515,570)    
Repurchase of common stock (in shares) (56,692)    
Common stock, issued (in shares) 7,554,893 7,554,893  
Treasury stock held (in shares) (566,268) (515,570)  
Common Stock      
Increase (Decrease) in Stockholders' Equity      
Common stock, issued (in shares) 7,554,893 7,284,151 7,023,821
Common stock outstanding (in shares) 7,039,323 6,768,581 6,616,975
Stock dividends (in shares)   270,742 260,330
Repurchase of common stock (in shares) (56,692)   (108,724)
Restricted share unit activity (in shares) 5,994    
Common stock, issued (in shares) 7,554,893 7,554,893 7,284,151
Common stock outstanding (in shares) 6,988,625 7,039,323 6,768,581
Treasury Stock      
Increase (Decrease) in Stockholders' Equity      
Treasury stock held (in shares) (515,570) (515,570) (406,846)
Stock dividends (in shares)   0 0
Repurchase of common stock (in shares) (56,692)   (108,724)
Restricted share unit activity (in shares) 5,994    
Treasury stock held (in shares) (566,268) (515,570) (515,570)
v3.25.1
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jul. 01, 2023
Dec. 31, 2024
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]      
Special stock dividend, rate percent (in percent) 4.00%    
Repurchase of common stock (in shares)   56,692  
Stock repurchased (in dollars per share)   $ 19.51  
Stock repurchased   $ 1,116 $ 2,892
Remaining available for repurchase of shares   $ 3,900  
v3.25.1
Share-Based Compensation - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available for grant (in shares) 203,000    
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense $ 184 $ 42 $ 0
Nonvested award, excluding option, cost not yet recognized, amount $ 700    
Unrecognized share-based compensation cost, period of recognition (in years) 2 years 4 months 24 days    
v3.25.1
Share-Based Compensation - Schedule of Status of the Company's Restricted Share Units (RSUs) (Details) - Restricted Stock Units - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Quantity    
Non-vested at beginning of period (in shares) 18,277 0
Granted (in shares) 23,151 18,277
Vested (in shares) 6,092 0
Forfeited (in shares) 0 0
Non-vested at end of period (in shares) 35,336 18,277
Weighted-Average Grant Date Fair Value Per share    
Non-vested at beginning of period (in shares) (in dollars per share) $ 20.63 $ 0
Granted (in dollars per share) 24.68 20.63
Vested (in dollars per share) 23.81 0
Forfeited (in dollars per share) 0 0
Non-vested at end of period (in dollars per share) $ 22.84 $ 20.63
v3.25.1
Retirement Plans - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure      
401(k) plan, percentage of employer match (in percent) 3.00%    
401(k) plan, maximum percentage contribution by employer (in percent) 6.00%    
Defined contribution plan, cost $ 500 $ 600 $ 500
Discretionary profit sharing contribution made to the 401(k) plan 800 600 1,000
SERP      
Defined Benefit Plan Disclosure      
SERP, accrued liability 1,700    
SERP, accrued expense 100 $ 40 $ 400
Distribution paid $ 100    
v3.25.1
Retirement Plans - Schedule of Obligations and Funded Status (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Change in projected benefit obligation:      
Beginning balance $ 30,623 $ 29,131  
Service cost 947 946 $ 1,491
Interest cost 1,477 1,428 1,174
Actuarial (gain) loss * (3,147) 49  
Benefits paid (1,113) (931)  
Ending balance 28,787 30,623 29,131
Change in plan assets:      
Fair value, beginning balance 36,242 30,932  
Actual return on plan assets 5,348 6,350  
Employer contribution 0 0  
Expenses paid (145) (109)  
Benefits paid (1,113) (931)  
Fair value, ending balance 40,332 36,242 $ 30,932
Funded status at end of year 11,544 5,619  
Accumulated benefit obligation 24,954 25,897  
Amounts recognized in the consolidated balance sheet consist of the following:      
Non-current assets 11,544 5,619  
Net asset at end of year $ 11,544 $ 5,619  
v3.25.1
Retirement Plans - Schedule of Net Pension Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Components of net pension cost      
Service cost - benefits earned during the year $ 947 $ 946 $ 1,491
Interest costs on projected benefit obligations 1,477 1,428 1,174
Expected return on plan assets (2,358) (2,178) (2,282)
Expected administrative expenses 109 115 118
Amortization of unrecognized net (gain) loss (690) (640) 0
Net periodic pension (income) cost $ (515) $ (329) $ 501
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Other Other
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Other Other
Defined Benefit Plan, Amortization of Gain (Loss) Other Other Other
v3.25.1
Retirement Plans - Schedule of Accumulated and Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]    
Net accumulated actuarial net gain $ 15,155 $ 9,745
Accumulated other comprehensive gain 15,155 9,745
Net periodic benefit cost in excess of cumulative employer contributions (3,611) (4,126)
Net asset at end of year 11,544 5,619
Net actuarial gain arising during period 6,100 4,129
Amortization of net actuarial gain (690) (640)
Total recognized in other comprehensive income (loss) 5,410 3,489
Total recognized in net periodic pension cost and other comprehensive income (loss) $ (5,925) $ (3,818)
v3.25.1
Retirement Plans - Schedule of Assumptions (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Determination of benefit obligation at year end:      
Discount rate (in percent) 5.65% 4.95% 5.10%
Annual rate of compensation increase (in percent) 4.50% 4.50% 4.50%
Determination of pension expense for year ended:      
Discount rate for the service cost (in percent) 4.95% 5.10% 3.10%
Annual rate of compensation increase (in percent) 4.50% 4.50% 4.50%
Expected long-term rate of return on plan assets (in percent) 6.75% 6.75% 6.75%
v3.25.1
Retirement Plans - Annual returns on plan assets, expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]          
Expected long-term rate of return on plan assets (in percent) 6.75% 6.75% 6.75%    
Annual returns on plan assets (in percent) 15.90% 21.10% (17.00%) 22.10% 19.70%
Income (loss) expected to be incurred in next fiscal year $ 0.8 $ 0.5      
v3.25.1
Retirement Plans - Schedule of FV of Plan Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]      
Fair Value $ 40,332 $ 36,242 $ 30,932
Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 31,821 33,655  
Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 8,511 2,587  
Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0 0  
Cash equivalents      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 3,630 1,521  
Cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 3,630 1,521  
Cash equivalents | Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0 0  
Cash equivalents | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0 0  
U.S. government and federal agency obligations      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 7,536 2,587  
U.S. government and federal agency obligations | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0 0  
U.S. government and federal agency obligations | Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 7,536 2,587  
U.S. government and federal agency obligations | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0 0  
Corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 975    
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0    
Corporate bonds | Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 975    
Corporate bonds | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0    
Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 28,191 32,134  
Mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 28,191 32,134  
Mutual funds | Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value 0 0  
Mutual funds | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value $ 0 $ 0  
v3.25.1
Retirement Plans - Schedule of Future Benefit Payments (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Pension benefits  
2025 $ 1,124
2026 1,208
2027 1,345
2028 1,466
2029 1,602
Thereafter $ 10,036
v3.25.1
Earnings per Share - Components (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]      
Net income available to common shareholders $ 18,256 $ 956 $ 20,751
Weighted average common shares outstanding (in shares) 7,000,480 7,039,323 7,063,054
Effect of dilutive equity-based awards 0 0 0
Weighted average dilutive common shares outstanding (in shares) 7,000,480 7,039,323 7,063,054
Basic earnings per share (in dollars per share) $ 2.61 $ 0.14 $ 2.94
Diluted earnings per share (in dollars per share) $ 2.61 $ 0.14 $ 2.94
v3.25.1
Capital Requirements (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
The actual and required capital amounts and ratios for the Company and the Bank    
Total capital (to risk-weighted assets), Actual Amount $ 232,400 $ 221,586
Total capital (to risk-weighted assets), Actual Ratio (in percent) 0.1479 0.1399
Total capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 164,953 $ 166,266
Total capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 0.1050 0.1050
Total capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Amount $ 0 $ 0
Tier I capital (to risk-weighted assets), Actual Amount $ 212,780 $ 199,395
Tier I capital (to risk-weighted assets), Actual, Ratio (in percent) 0.1354 0.1259
Tier I capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 133,533 $ 134,596
Tier I capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 0.0850 0.0850
Tier I capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Amount $ 0 $ 0
Common Equity Tier I Capital (to risk-weighted assets), Actual Amount $ 164,780 $ 154,033
Common Equity Tier I Capital (to risk-weighted assets), Actual Ratio (in percent) 0.1049 0.0973
Common Equity Tier I Capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 109,968 $ 110,844
Common Equity Tier I Capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 7.00% 7.00%
Common Equity Tier I Capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Amount $ 0 $ 0
Tier I Leverage Ratio (to adjusted average assets), Actual Amount $ 212,780 $ 199,395
Tier I Leverage Ratio (to adjusted average assets), Actual Ratio (in percent) 0.1146 0.1029
Tier I Leverage Ratio (to adjusted average assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 74,261 $ 77,492
Tier I Leverage Ratio (to adjusted average assets) Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 0.0400 0.0400
Tier I Leverage Ratio (to adjusted average assets), Required to be Considered Well-Capitalized, Amount $ 0 $ 0
Bank    
The actual and required capital amounts and ratios for the Company and the Bank    
Total capital (to risk-weighted assets), Actual Amount $ 219,410 $ 219,043
Total capital (to risk-weighted assets), Actual Ratio (in percent) 0.1410 0.1391
Total capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 163,365 $ 165,369
Total capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 0.1050 0.1050
Total capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Amount $ 155,586 $ 157,494
Total capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Ratio (in percent) 0.1000 0.1000
Tier I capital (to risk-weighted assets), Actual Amount $ 199,960 $ 199,490
Tier I capital (to risk-weighted assets), Actual, Ratio (in percent) 0.1285 0.1267
Tier I capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 132,248 $ 133,870
Tier I capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 0.0850 0.0850
Tier I capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Amount $ 124,469 $ 125,995
Tier I capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Ratio (as a percent) 0.0800 0.0800
Common Equity Tier I Capital (to risk-weighted assets), Actual Amount $ 199,960 $ 199,490
Common Equity Tier I Capital (to risk-weighted assets), Actual Ratio (in percent) 0.1285 0.1267
Common Equity Tier I Capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 108,910 $ 110,246
Common Equity Tier I Capital (to risk-weighted assets), Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 7.00% 7.00%
Common Equity Tier I Capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Amount $ 101,131 $ 102,371
Common Equity Tier I Capital (to risk-weighted assets), Required to be Considered Well-Capitalized, Ratio (as a percent) 6.50% 6.50%
Tier I Leverage Ratio (to adjusted average assets), Actual Amount $ 199,960 $ 199,490
Tier I Leverage Ratio (to adjusted average assets), Actual Ratio (in percent) 0.1083 0.1031
Tier I Leverage Ratio (to adjusted average assets), Minimum Capital Required Basel III Fully Phased-In, Amount $ 73,847 $ 77,411
Tier I Leverage Ratio (to adjusted average assets) Minimum Capital Required Basel III Fully Phased-In, Ratio (in percent) 0.0400 0.0400
Tier I Leverage Ratio (to adjusted average assets), Required to be Considered Well-Capitalized, Amount $ 92,309 $ 96,763
Tier I Leverage Ratio (to adjusted average assets), Required to be Considered Well-Capitalized, Ratio (in percent) 0.0500 0.0500
v3.25.1
Fair Value Measurements - Mortgage Servicing Rights - Summary (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Available-for-sale debt securities, at fair value $ 218,652 $ 188,742
Loans held for sale 0 3,884
U.S. Treasury    
Assets:    
Available-for-sale debt securities, at fair value 4,915 1,978
U.S. government and federal agency obligations    
Assets:    
Available-for-sale debt securities, at fair value 401 427
US Government-sponsored Enterprises Debt Securities [Member]    
Assets:    
Available-for-sale debt securities, at fair value 12,804 21,822
Obligations of states and political subdivisions    
Assets:    
Available-for-sale debt securities, at fair value 102,486 106,885
Mortgage-backed securities    
Assets:    
Available-for-sale debt securities, at fair value 78,110 45,640
Other debt securities    
Assets:    
Available-for-sale debt securities, at fair value 18,687 10,821
Bank-issued trust preferred securities    
Assets:    
Available-for-sale debt securities, at fair value 1,249 1,169
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets:    
Loans held for sale   0
Other Observable Inputs (Level 2)    
Assets:    
Loans held for sale   3,884
Significant Unobservable Inputs (Level 3)    
Assets:    
Loans held for sale   0
Recurring    
Assets:    
Loans held for sale   3,884
Mortgage servicing rights   1,738
Total 218,792 194,485
Liabilities:    
Total 89 43
Recurring | U.S. Treasury    
Assets:    
Available-for-sale debt securities, at fair value 4,915 1,978
Recurring | U.S. government and federal agency obligations    
Assets:    
Available-for-sale debt securities, at fair value 401 427
Recurring | US Government-sponsored Enterprises Debt Securities [Member]    
Assets:    
Available-for-sale debt securities, at fair value 12,804 21,822
Recurring | Obligations of states and political subdivisions    
Assets:    
Available-for-sale debt securities, at fair value 102,486 106,885
Recurring | Mortgage-backed securities    
Assets:    
Available-for-sale debt securities, at fair value 78,110 45,640
Recurring | Other debt securities    
Assets:    
Available-for-sale debt securities, at fair value 18,687 10,821
Recurring | Bank-issued trust preferred securities    
Assets:    
Available-for-sale debt securities, at fair value 1,249 1,169
Recurring | Equity securities    
Assets:    
Available-for-sale debt securities, at fair value 74 78
Recurring | Derivative instruments, interest rate swaps    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments 66  
Recurring | Interest rate lock commitments    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments   43
Liabilities:    
Commitments 89 2
Recurring | Forward sale commitments    
Liabilities:    
Commitments   41
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets:    
Loans held for sale   0
Mortgage servicing rights   0
Total 4,989 2,056
Liabilities:    
Total 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury    
Assets:    
Available-for-sale debt securities, at fair value 4,915 1,978
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and federal agency obligations    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Government-sponsored Enterprises Debt Securities [Member]    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Bank-issued trust preferred securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities    
Assets:    
Available-for-sale debt securities, at fair value 74 78
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative instruments, interest rate swaps    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments 0  
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments   0
Liabilities:    
Commitments 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments    
Liabilities:    
Commitments   0
Recurring | Other Observable Inputs (Level 2)    
Assets:    
Loans held for sale   3,884
Mortgage servicing rights   0
Total 213,803 190,648
Liabilities:    
Total 89 41
Recurring | Other Observable Inputs (Level 2) | U.S. Treasury    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Other Observable Inputs (Level 2) | U.S. government and federal agency obligations    
Assets:    
Available-for-sale debt securities, at fair value 401 427
Recurring | Other Observable Inputs (Level 2) | US Government-sponsored Enterprises Debt Securities [Member]    
Assets:    
Available-for-sale debt securities, at fair value 12,804 21,822
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions    
Assets:    
Available-for-sale debt securities, at fair value 102,486 106,885
Recurring | Other Observable Inputs (Level 2) | Mortgage-backed securities    
Assets:    
Available-for-sale debt securities, at fair value 78,110 45,640
Recurring | Other Observable Inputs (Level 2) | Other debt securities    
Assets:    
Available-for-sale debt securities, at fair value 18,687 10,821
Recurring | Other Observable Inputs (Level 2) | Bank-issued trust preferred securities    
Assets:    
Available-for-sale debt securities, at fair value 1,249 1,169
Recurring | Other Observable Inputs (Level 2) | Equity securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Other Observable Inputs (Level 2) | Derivative instruments, interest rate swaps    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments 66  
Recurring | Other Observable Inputs (Level 2) | Interest rate lock commitments    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments   0
Liabilities:    
Commitments 89 0
Recurring | Other Observable Inputs (Level 2) | Forward sale commitments    
Liabilities:    
Commitments   41
Recurring | Significant Unobservable Inputs (Level 3)    
Assets:    
Loans held for sale   0
Mortgage servicing rights   1,738
Total 0 1,781
Liabilities:    
Total 0 2
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and federal agency obligations    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | US Government-sponsored Enterprises Debt Securities [Member]    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Other debt securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Bank-issued trust preferred securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Equity securities    
Assets:    
Available-for-sale debt securities, at fair value 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Derivative instruments, interest rate swaps    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments 0  
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate lock commitments    
Assets:    
Derivative instruments, interest rate swaps and Interest rate lock commitments   43
Liabilities:    
Commitments $ 0 2
Recurring | Significant Unobservable Inputs (Level 3) | Forward sale commitments    
Liabilities:    
Commitments   $ 0
v3.25.1
Fair Value Measurements - Mortgage Servicing Rights - Level 3 (Details) - Recurring - Significant Unobservable Inputs (Level 3) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Mortgage servicing rights    
Fair value of assets    
Balance at beginning of period $ 1,738 $ 2,899
Total (losses) or gains (realized/unrealized):    
Included in earnings (68) (1,200)
Included in other comprehensive income 0 0
Purchases 0 0
Sales (1,670) 0
Issues 0 39
Settlements 0 0
Balance at end of period 0 1,738
Interest Rate Lock Commitments    
Fair value of liabilities    
Balance at beginning of period 41 2
Total (losses) or gains (realized/unrealized):    
Included in earnings (11) (35)
Included in other comprehensive income 0 0
Purchases 0 0
Sales (86) (169)
Issues 56 243
Settlements 0 0
Balance at end of period $ 0 $ 41
v3.25.1
Fair Value Measurements - Other Real Estate Owned and Repossessed Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Total Gains (Losses) | Real Estate Mortgage - Residential    
Fair Value Measurements    
Gains (losses) on impaired loans $ (50)  
Nonrecurring | Fair value    
Fair Value Measurements    
Impaired loans 966 $ 3,585
Other real estate and repossessed assets 546 1,744
Nonrecurring | Fair value | Commercial, financial, and agricultural    
Fair Value Measurements    
Impaired loans 641 921
Nonrecurring | Fair value | Real Estate Construction - Residential    
Fair Value Measurements    
Impaired loans 260 268
Nonrecurring | Fair value | Real Estate Mortgage - Residential    
Fair Value Measurements    
Impaired loans 0 27
Nonrecurring | Fair value | Real Estate Mortgage - Commercial    
Fair Value Measurements    
Impaired loans 65 2,369
Nonrecurring | Total Gains (Losses)    
Fair Value Measurements    
Gains (losses) on impaired loans (2,417) (196)
Gains (losses) on other real estate and repossessed assets 875 (4,431)
Nonrecurring | Total Gains (Losses) | Commercial, financial, and agricultural    
Fair Value Measurements    
Gains (losses) on impaired loans (1,931) (76)
Nonrecurring | Total Gains (Losses) | Real Estate Construction - Residential    
Fair Value Measurements    
Gains (losses) on impaired loans 0 0
Nonrecurring | Total Gains (Losses) | Real Estate Mortgage - Residential    
Fair Value Measurements    
Gains (losses) on impaired loans   (88)
Nonrecurring | Total Gains (Losses) | Real Estate Mortgage - Commercial    
Fair Value Measurements    
Gains (losses) on impaired loans (436) (32)
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value    
Fair Value Measurements    
Impaired loans 0 0
Other real estate and repossessed assets 0 0
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value | Commercial, financial, and agricultural    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value | Real Estate Construction - Residential    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value | Real Estate Mortgage - Residential    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value | Real Estate Mortgage - Commercial    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Other Observable Inputs (Level 2) | Fair value    
Fair Value Measurements    
Impaired loans 0 0
Other real estate and repossessed assets 0 0
Nonrecurring | Other Observable Inputs (Level 2) | Fair value | Commercial, financial, and agricultural    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Other Observable Inputs (Level 2) | Fair value | Real Estate Construction - Residential    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Other Observable Inputs (Level 2) | Fair value | Real Estate Mortgage - Residential    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Other Observable Inputs (Level 2) | Fair value | Real Estate Mortgage - Commercial    
Fair Value Measurements    
Impaired loans 0 0
Nonrecurring | Significant Unobservable Inputs (Level 3) | Fair value    
Fair Value Measurements    
Impaired loans 966 3,585
Other real estate and repossessed assets 546 1,744
Nonrecurring | Significant Unobservable Inputs (Level 3) | Fair value | Commercial, financial, and agricultural    
Fair Value Measurements    
Impaired loans 641 921
Nonrecurring | Significant Unobservable Inputs (Level 3) | Fair value | Real Estate Construction - Residential    
Fair Value Measurements    
Impaired loans 260 268
Nonrecurring | Significant Unobservable Inputs (Level 3) | Fair value | Real Estate Mortgage - Residential    
Fair Value Measurements    
Impaired loans 0 27
Nonrecurring | Significant Unobservable Inputs (Level 3) | Fair value | Real Estate Mortgage - Commercial    
Fair Value Measurements    
Impaired loans $ 65 $ 2,369
v3.25.1
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Cash and due from banks $ 23,668 $ 15,675
Certificates of deposit in other banks 1,000 0
Loans held for sale 0 3,884
Deposits:    
Non-interest bearing demand 385,022 402,241
Savings, interest checking and money market 846,339 846,452
Time deposits 301,821  
Carrying amount    
Assets:    
Cash and due from banks 23,668 15,675
Federal funds sold and overnight interest-bearing deposits 27,326 77,775
Certificates of deposit in other banks 1,000  
Other investment securities 5,149 6,300
Loans, net 1,444,116 1,515,403
Loans held for sale   3,884
Accrued interest receivable 8,221 8,661
Deposits:    
Non-interest bearing demand 385,022 402,241
Savings, interest checking and money market 846,339 846,452
Time deposits 301,821 322,151
FHLB advances and other borrowings 81,525 107,000
Subordinated notes 49,486 49,486
Accrued interest payable 1,754 1,772
Fair value    
Assets:    
Cash and due from banks 23,668 15,675
Federal funds sold and overnight interest-bearing deposits 27,326 77,775
Certificates of deposit in other banks 1,000  
Other investment securities 5,149 6,300
Loans, net 1,380,252 1,364,533
Loans held for sale   3,884
Accrued interest receivable 8,221 8,661
Deposits:    
Non-interest bearing demand 385,022 402,241
Savings, interest checking and money market 846,339 846,452
Time deposits 300,386 319,929
FHLB advances and other borrowings 81,585 107,245
Subordinated notes 41,602 38,939
Accrued interest payable 1,754 1,772
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets:    
Cash and due from banks 23,668 15,675
Federal funds sold and overnight interest-bearing deposits 27,326 77,775
Certificates of deposit in other banks 1,000  
Other investment securities 74 78
Loans, net 0 0
Loans held for sale   0
Accrued interest receivable 8,221 8,661
Deposits:    
Non-interest bearing demand 385,022 402,241
Savings, interest checking and money market 846,339 846,452
Time deposits 0 0
FHLB advances and other borrowings 0 0
Subordinated notes 0 0
Accrued interest payable 1,754 1,772
Other Observable Inputs (Level 2)    
Assets:    
Cash and due from banks 0 0
Federal funds sold and overnight interest-bearing deposits 0 0
Certificates of deposit in other banks 0  
Other investment securities 5,075 6,222
Loans, net 0 0
Loans held for sale   3,884
Accrued interest receivable 0 0
Deposits:    
Non-interest bearing demand 0 0
Savings, interest checking and money market 0 0
Time deposits 0 0
FHLB advances and other borrowings 81,585 107,245
Subordinated notes 41,602 38,939
Accrued interest payable 0 0
Significant Unobservable Inputs (Level 3)    
Assets:    
Cash and due from banks 0 0
Federal funds sold and overnight interest-bearing deposits 0 0
Certificates of deposit in other banks 0  
Other investment securities 0 0
Loans, net 1,380,252 1,364,533
Loans held for sale   0
Accrued interest receivable 0 0
Deposits:    
Non-interest bearing demand 0 0
Savings, interest checking and money market 0 0
Time deposits 300,386 319,929
FHLB advances and other borrowings 0 0
Subordinated notes 0 0
Accrued interest payable $ 0 $ 0
v3.25.1
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Commitments [Line Items]        
Credit losses on unfunded commitments $ 22,044 $ 23,744 $ 15,588 $ 16,903
Unfunded Loan Commitment        
Other Commitments [Line Items]        
Credit losses on unfunded commitments $ 900 $ 900    
Minimum        
Other Commitments [Line Items]        
Remaining term of conditional commitment 1 month      
Maximum        
Other Commitments [Line Items]        
Remaining term of conditional commitment 5 years      
v3.25.1
Commitments and Contingencies - Schedule of Contractual Amount of Off-Balance-Sheet Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Total $ 447,618 $ 406,043
Commitments to extend credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Total 305,811 286,939
Interest rate lock commitments    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Total 0 3,694
Forward sale commitments    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Total 0 3,779
Standby letters of credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Total $ 141,807 $ 111,631
v3.25.1
Segment Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
segment
Dec. 31, 2022
USD ($)
segment
Operating revenue      
Interest income $ 95,351 $ 91,968 $ 69,256
Interest expense 36,758 32,826 10,493
Net interest income 58,593 59,142 58,763
Total provision for (release of) credit losses on loans and unfunded commitments 1,027 2,340 (900)
Operating expenses      
Salaries and employee benefits 26,578 28,971 27,058
Occupancy, furniture and equipment expense 4,555 4,041 3,930
Processing, network, and bank card expense 5,530 5,151 4,788
Legal, examination, and professional fees 2,608 2,508 1,630
Depreciation and amortization 1,715 2,214 2,299
Other 8,538 9,474 8,833
Total expenses 49,524 52,359 48,538
Other      
Non-interest income 14,320 7,536 13,978
Investment securities losses, net (4) (11,547) (14)
Income taxes 4,102 (524) 4,338
Net income 18,256 956 20,751
Segment assets $ 1,825,185 $ 1,875,350 $ 1,923,540
Number of reportable segments | segment 1 1 1
Hawthorn Bank | Hawthorn Bank      
Operating revenue      
Interest income $ 95,234 $ 91,743 $ 69,155
Interest expense 32,859 29,052 8,421
Net interest income 62,375 62,691 60,734
Total provision for (release of) credit losses on loans and unfunded commitments 1,027 2,340 (900)
Operating expenses      
Salaries and employee benefits 25,238 27,830 25,077
Occupancy, furniture and equipment expense 4,555 4,040 3,931
Processing, network, and bank card expense 5,530 5,151 4,788
Legal, examination, and professional fees 2,273 2,006 1,318
Depreciation and amortization 1,715 2,214 2,299
Other 7,723 9,761 9,428
Total expenses 47,034 51,002 46,841
Other      
Non-interest income 13,382 7,416 13,147
Investment securities losses, net (4) (11,500) (14)
Income taxes 5,827 698 5,193
Net income 21,865 4,567 22,733
Segment assets 1,812,168 1,867,686 1,913,990
Non-Banks | Non-Banks      
Operating revenue      
Interest income 117 225 101
Interest expense 3,899 3,774 2,072
Net interest income (3,782) (3,549) (1,971)
Total provision for (release of) credit losses on loans and unfunded commitments 0 0 0
Operating expenses      
Salaries and employee benefits 1,340 1,141 1,981
Occupancy, furniture and equipment expense 0 1 (1)
Processing, network, and bank card expense 0 0 0
Legal, examination, and professional fees 335 502 312
Depreciation and amortization 0 0 0
Other 815 (287) (595)
Total expenses 2,490 1,357 1,697
Other      
Non-interest income 938 120 831
Investment securities losses, net 0 (47) 0
Income taxes (1,725) (1,222) (855)
Net income (3,609) (3,611) (1,982)
Segment assets $ 13,017 $ 7,664 $ 9,550
v3.25.1
Condensed Financial Information of the Parent Company Only - Schedule of Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets        
Cash and due from bank subsidiaries $ 23,668 $ 15,675    
Total assets 1,825,185 1,875,350    
Liabilities and Stockholders’ Equity        
Subordinated notes 49,486 49,486    
Stockholders’ equity 149,547 136,085 $ 127,411 $ 148,956
Total liabilities and stockholders’ equity 1,825,185 1,875,350    
HAWTHORN BANCSHARES, INC. | Reportable Legal Entities        
Assets        
Cash and due from bank subsidiaries 15,273 6,807    
Investment in bank-issued trust preferred securities 1,249 1,169    
Investment in subsidiaries 173,916 175,273    
Other assets 13,797 6,187    
Total assets 204,235 189,436    
Liabilities and Stockholders’ Equity        
Subordinated notes 49,486 49,486    
Deferred tax liability 1,981 735    
Accrued interest payable and other liabilities 3,221 3,130    
Stockholders’ equity 149,547 136,085    
Total liabilities and stockholders’ equity $ 204,235 $ 189,436    
v3.25.1
Condensed Financial Information of the Parent Company Only - Schedule of Condensed Statements of Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income      
Interest and dividends received from subsidiaries $ 95,351 $ 91,968 $ 69,256
Other 1,700 1,577 1,448
Expenses      
Interest on subordinated notes 3,899 3,774 2,072
Other 6,652 7,106 6,426
Total expenses 49,524 52,359 48,538
Income tax benefit (4,102) 524 (4,338)
Net income 18,256 956 20,751
HAWTHORN BANCSHARES, INC. | Reportable Legal Entities      
Income      
Interest and dividends received from subsidiaries 20,117 10,158 11,497
Other 1,581 1,390 1,108
Total income 21,698 11,548 12,605
Expenses      
Interest on subordinated notes 3,899 3,774 2,072
Other 2,875 2,771 3,191
Total expenses 6,774 6,545 5,263
Income before income tax benefit and equity in undistributed income of subsidiaries 14,924 5,003 7,342
Income tax benefit 1,672 1,058 859
Equity in undistributed (loss) income of subsidiaries 1,660 (5,105) 12,550
Net income $ 18,256 $ 956 $ 20,751
v3.25.1
Condensed Financial Information of the Parent Company Only - Schedule of Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income $ 18,256 $ 956 $ 20,751
Adjustments to reconcile net income to net cash provided by operating activities:      
(Increase) decrease in other assets 1,303 (5,602) (2,745)
(Decrease) increase in other liabilities 1,021 (3,423) 902
Net cash provided by operating activities 25,593 17,609 20,279
Cash flows from investing activities:      
Net cash provided by (used in) investing activities 1,254 54,192 (206,535)
Cash flows from financing activities:      
Cash dividends paid - common stock (5,047) (4,649) (4,240)
Purchase of treasury stock (1,119) 0 (2,892)
Net cash (used in) provided by financing activities (69,303) (62,071) 110,067
Net (decrease) increase in cash and cash equivalents (42,456) 9,730 (76,189)
Cash and due from banks at beginning of year 93,450 83,720 159,909
Cash and due from banks at end of year 50,994 93,450 83,720
HAWTHORN BANCSHARES, INC. | Reportable Legal Entities      
Cash flows from operating activities:      
Net income 18,256 956 20,751
Adjustments to reconcile net income to net cash provided by operating activities:      
Equity in undistributed (income) loss of subsidiaries (1,660) 5,105 (12,550)
(Increase) decrease in other assets (1,418) 1,486 540
(Decrease) increase in other liabilities 215 262 0
Other, net (331) (5,868) (1,060)
Net cash provided by operating activities 14,632 1,417 7,681
Cash flows from investing activities:      
Decrease in investment in subsidiaries, net 0 7,575 110
Net cash provided by (used in) investing activities 0 7,575 110
Cash flows from financing activities:      
Cash dividends paid - common stock (5,047) (4,649) (4,240)
Purchase of treasury stock (1,119) 0 (2,892)
Net cash (used in) provided by financing activities (6,166) (4,649) (7,132)
Net (decrease) increase in cash and cash equivalents 8,466 4,343 659
Cash and due from banks at beginning of year 6,807 2,464 1,805
Cash and due from banks at end of year $ 15,273 $ 6,807 $ 2,464