The Company uses the discounted cash flow (“DCF”) method to estimate expected losses for all of Company’s loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These Q-Factors and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system and (ix) economic conditions.

Each year management evaluates the performance of the selected models used in the CECL calculation through backtesting. Based on the results of the testing, management determines if the various models produced accurate results compared to the actual losses incurred for the current economic environment. Management then determines if changes to the input assumptions and economic factors would produce a stronger overall calculation that is more responsive to changes in economic conditions. The Company continues to use regression analysis to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default for the changes in the economic factors for the loss driver segments. The identified loss drivers by segment are included below as of December 31, 2023 and 2022.


Loss Driver Segment	Call Report Segment(s)	Modeled Economic Factors
1-4 Family Construction	1a1	National Unemployment (%) & Housing Price Index (%)
All Other Construction	1a2	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Revolving HELOC & Junior Liens	1c1	National Unemployment (%) & Housing Price Index – CoreLogic (%)
1-4 Family Revolving HELOC & Junior Liens	1c2b	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Senior Liens	1c2a	National Unemployment (%) & Gross Domestic Product (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index – Case-Schiller (%)
Owner Occupied CRE	1e1	National Unemployment (%) & Gross Domestic Product (%)
Non-Owner Occupied CRE	1e2,1b,8	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Agricultural, Non-Depository Financial Institutions, Purchase/Carry Securities, Other	4a, 3, 9a, 9b1, 9b2, 10, Other	National Unemployment (%) & National Retail Sales (%)
Consumer Auto	6c	National Unemployment (%) & National Retail Sales (%)
Other Consumer	6b, 6d	National Unemployment (%) & National Retail Sales (%)
Other Consumer - SPF	6d	National Unemployment (%)

The combination of adjustments for credit expectations (default and loss) and time expectations prepayment, curtailment, and time to recovery produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis.

Construction/Land Development and Other Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30-year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years. Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit loss on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company uses the DCF method to estimate expected losses for all of Company’s off-balance sheet credit exposures through the use of the existing DCF models for the Company’s loan portfolio pools. The off-balance sheet credit exposures exhibit similar risk characteristics as loans currently in the Company’s loan portfolio.

During the year ended December 31, 2022, the Company completed the acquisition of Happy. As a result, the Company recorded $4.4 million in net loan discounts and a $16.8 million increase in the allowance for credit losses related to PCD loans. In addition, the Company recorded a $45.2 million provision for credit losses on acquired loans for the CECL "double count" and an $11.4 million provision for credit losses on acquired unfunded commitments. In addition, the Company recorded a $5.0 million provision for credit losses on loans due to increased loan growth. However, the Company determined that no additional provision was necessary for unfunded commitments as the current level of the reserve was considered adequate.


	Year Ended December 31, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,243	$	93,848	$	50,963	$	89,354	$	23,261	$	289,669

Loans charged off	(263)		(2,335)		(269)		(9,157)		(4,031)		(16,055)
Recoveries of loans previously charged off	113		533		329		583		1,112		2,670
Net loans recovered (charged off)	(150)		(1,802)		60		(8,574)		(2,919)		(13,385)

Provision for credit loss - loans	1,784		(13,411)		4,837		12,030		6,710		11,950
Balance, December 31	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234


	Year Ended December 31, 2022
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714
Allowance for credit losses on PCD loans - Happy acquisition	950		9,283		980		5,596		7		16,816
Loans charged off	(1)		—		(446)		(9,773)		(7,047)		(17,267)
Recoveries of loans previously charged off	405		967		119		780		965		3,236
Net loans recovered (charged off)	404		967		(327)		(8,993)		(6,082)		(14,031)
Provision for credit loss - acquired loans	7,205		18,711		7,380		11,303		571		45,170
Provision for credit loss - loans	(4,731)		(22,331)		(5,528)		28,386		9,204		5,000
Balance, December 31	$	32,243	$	93,848	$	50,963	$	89,354	$	23,261	$	289,669


	Year Ended December 31, 2021
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	32,861	$	88,453	$	53,216	$	46,530	$	24,413	$	245,473
Loans charged off	—		(646)		(545)		(8,242)		(2,228)		(11,661)
Recoveries of loans previously charged off	58		785		683		591		785		2,902
Net loans recovered (charged off)	58		139		138		(7,651)		(1,443)		(8,759)
Provision for credit loss - loans	(4,504)		(1,374)		(4,896)		14,183		(3,409)		—
Balance December 31	$	28,415	$	87,218	$	48,458	$	53,062	$	19,561	$	236,714


	December 31, 2023
	Nonaccrual		Nonaccrual With Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	13,178	$	—	$	2,177
Construction/land development	12,094		—		255
Agricultural	431		—		—
Residential real estate loans
Residential 1-4 family	20,351		—		84
Multifamily residential	—		—		—
Total real estate	46,054		—		2,516
Consumer	3,423		—		79
Commercial and industrial	9,982		2,534		1,535
Agricultural & other	512		—		—
Total	$	59,971	$	2,534	$	4,130


	December 31, 2022
	Nonaccrual		Nonaccrual With Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	12,219	$	8,383	$	1,844
Construction/land development	1,977		—		31
Agricultural	278		—		—
Residential real estate loans
Residential 1-4 family	18,083		—		1,374
Multifamily residential	—		—		—
Total real estate	32,557		8,383		3,249
Consumer	2,842		—		35
Commercial and industrial	14,920		—		6,300
Agricultural & other	692		—		261
Total	$	51,011	$	8,383	$	9,845

Loans that do not share risk characteristics are evaluated on an individual basis. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral less estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell.


	December 31, 2023
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	8,124	$	416	$	15,355	$	23,895	$	5,526,059	$	5,549,954	$	2,177
Construction/land development	1,430		—		12,349		13,779		2,279,268		2,293,047		255
Agricultural	474		314		431		1,219		323,937		325,156		—
Residential real estate loans
Residential 1-4 family	4,346		1,423		20,435		26,204		1,818,056		1,844,260		84
Multifamily residential	—		—		—		—		435,736		435,736		—
Total real estate	14,374		2,153		48,570		65,097		10,383,056		10,448,153		2,516
Consumer	1,022		303		3,502		4,827		1,148,863		1,153,690		79
Commercial and industrial	2,089		3,378		11,517		16,984		2,308,007		2,324,991		1,535
Agricultural and other	1,074		113		512		1,699		496,195		497,894		—
Total	$	18,559	$	5,947	$	64,101	$	88,607	$	14,336,121	$	14,424,728	$	4,130


	December 31, 2022
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	4,242	$	2,117	$	14,063	$	20,422	$	5,611,641	$	5,632,063	$	1,844
Construction/land development	4,042		1,892		2,008		7,942		2,127,324		2,135,266		31
Agricultural	1,469		193		278		1,940		344,871		346,811		—
Residential real estate loans
Residential 1-4 family	6,715		605		19,457		26,777		1,721,774		1,748,551		1,374
Multifamily residential	—		—		—		—		578,052		578,052		—
Total real estate	16,468		4,807		35,806		57,081		10,383,662		10,440,743		3,249
Consumer	950		539		2,877		4,366		1,145,530		1,149,896		35
Commercial and industrial	3,007		1,075		21,220		25,302		2,323,961		2,349,263		6,300
Agricultural and other	1,065		57		953		2,075		467,503		469,578		261
Total	$	21,490	$	6,478	$	60,856	$	88,824	$	14,320,656	$	14,409,480	$	9,845

•Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

•Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

•Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound.

•Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure.

•Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan.

•Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible.

Loans may be classified, but not considered impaired, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for loan impairment testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for impairment on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for impairment and therefore are not included in impaired loans; (2) of the loans that are above the threshold amount and tested for impairment, after testing, some are considered to not be impaired and are not included in impaired loans.


	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	232	$	116	$	55	$	403
Risk rating 2	—		—		—		—		111		—		—		111
Risk rating 3	305,742		584,860		568,413		243,177		216,746		934,111		440,414		3,293,463
Risk rating 4	83,089		557,540		242,217		224,378		149,258		590,864		95,360		1,942,706
Risk rating 5	—		—		10,000		—		14,095		42,694		758		67,547
Risk rating 6	—		8,198		9,958		23,743		24,380		179,350		95		245,724
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Risk rating 1	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	10
Risk rating 2	759		—		—		—		—		186		—		945
Risk rating 3	300,941		499,984		130,342		62,134		22,656		56,180		44,603		1,116,840
Risk rating 4	198,874		417,244		252,602		22,713		32,342		24,527		209,063		1,157,365
Risk rating 5	641		1,163		—		3,306		218		69		—		5,397
Risk rating 6	—		7,817		1,631		748		641		254		1,327		12,418
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		72		—		—		—		—		72
Total construction/land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Risk rating 1	$	—	$	1,605	$	—	$	—	$	—	$	—	$	—	$	1,605
Risk rating 2	247		—		1,936		—		—		—		—		2,183
Risk rating 3	30,252		43,291		22,919		25,992		10,678		43,284		20,104		196,520
Risk rating 4	9,477		24,688		20,358		19,532		7,873		32,692		4,612		119,232
Risk rating 5	—		—		—		—		314		571		—		885
Risk rating 6	—		—		1,675		1,084		1,620		352		—		4,731
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	144	$	2	$	146
Risk rating 2	259		—		—		—		—		20		1		280
Risk rating 3	246,462		366,149		241,985		145,339		93,751		324,569		122,950		1,541,205
Risk rating 4	14,992		37,444		55,406		21,240		13,313		67,084		62,356		271,835
Risk rating 5	—		243		246		479		831		1,343		40		3,182
Risk rating 6	71		5,361		2,926		4,064		3,432		10,567		1,189		27,610
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260


	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	3,314		9,827		37,755		44,407		31,436		53,068		6,537		186,344
Risk rating 4	669		77,185		69,546		64,295		8,116		18,490		7,822		246,123
Risk rating 5	—		—		—		—		—		3,006		—		3,006
Risk rating 6	—		—		—		—		263		—		—		263
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	$	1,195,789	$	2,642,599	$	1,669,997	$	906,631	$	632,306	$	2,383,543	$	1,017,288	$	10,448,153
Consumer
Risk rating 1	$	5,195	$	2,952	$	2,002	$	839	$	355	$	1,114	$	1,580	$	14,037
Risk rating 2	—		—		—		—		126		54		—		180
Risk rating 3	240,897		245,543		211,312		108,009		108,063		191,220		1,264		1,106,308
Risk rating 4	9,597		7,534		2,479		69		109		6,073		214		26,075
Risk rating 5	22		—		22		483		872		261		—		1,660
Risk rating 6	204		1,559		830		581		881		1,349		11		5,415
Risk rating 7	15		—		—		—		—		—		—		15
Risk rating 8	—		—		—		—		—		—		—		—
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Risk rating 1	3,757		$	918	$	1,120	$	236	$	121	$	20,835	$	12,644	$	39,631
Risk rating 2	174		1,293		220		12		164		218		963		3,044
Risk rating 3	487,896		272,608		78,507		50,340		77,761		170,610		227,043		1,364,765
Risk rating 4	115,025		34,474		55,812		33,000		27,189		71,854		378,417		715,771
Risk rating 5	21		547		16,318		3,352		201		980		1,767		23,186
Risk rating 6	12,498		75,536		4,942		1,154		9,086		12,180		63,198		178,594
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Risk rating 1	$	408	$	131	$	16	$	105	$	—	$	2	$	563	$	1,225
Risk rating 2	396		28		1		—		1,181		100		693		2,399
Risk rating 3	52,758		45,796		31,378		26,918		3,059		43,984		145,419		349,312
Risk rating 4	14,007		7,663		8,025		955		10,955		3,188		94,186		138,979
Risk rating 5	—		2,286		—		134		—		593		665		3,678
Risk rating 6	71		33		63		108		—		370		1,656		2,301
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728


	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	237	$	—	$	132	$	85	$	454
Risk rating 2	—		—		—		118		—		3,992		—		4,110
Risk rating 3	616,809		509,269		263,188		279,157		322,278		852,727		374,371		3,217,799
Risk rating 4	438,565		341,047		235,669		161,421		321,188		482,437		139,203		2,119,530
Risk rating 5	—		757		1,145		14,417		35,273		37,561		95		89,248
Risk rating 6	876		196		14,247		26,649		4,720		153,909		194		200,791
Risk rating 7	131		—		—		—		—		—		—		131
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	1,056,381		851,269		514,249		481,999		683,459		1,530,758		513,948		5,632,063
Construction/land development
Risk rating 1	$	—	$	11	$	—	$	—	$	—	$	—	$	—	$	11
Risk rating 2	682		—		—		—		—		210		—		892
Risk rating 3	421,774		283,546		83,631		48,350		19,340		34,910		75,797		967,348
Risk rating 4	354,852		512,541		58,368		79,924		11,520		43,634		65,960		1,126,799
Risk rating 5	—		—		30,987		310		—		1,140		—		32,437
Risk rating 6	612		—		574		751		3		5,839		—		7,779
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total construction/land development	777,920		796,098		173,560		129,335		30,863		85,733		141,757		2,135,266
Agricultural
Risk rating 1	$	1,749	$	—	$	—	$	—	$	—	$	—	$	—	$	1,749
Risk rating 2	—		2,048		—		—		—		—		—		2,048
Risk rating 3	61,725		43,356		32,895		16,475		10,326		37,892		5,996		208,665
Risk rating 4	18,870		25,252		20,532		8,706		3,154		42,886		4,755		124,155
Risk rating 5	—		—		—		326		—		603		—		929
Risk rating 6	—		1,630		1,623		4,972		—		1,040		—		9,265
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	82,344		72,286		55,050		30,479		13,480		82,421		10,751		346,811
Total commercial real estate loans	$	1,916,645	$	1,719,653	$	742,859	$	641,813	$	727,802	$	1,698,912	$	666,456	$	8,114,140
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	115	$	40	$	155
Risk rating 2	—		—		—		—		—		48		2		50
Risk rating 3	360,510		255,775		176,955		112,053		98,093		314,492		110,881		1,428,759
Risk rating 4	37,471		35,875		61,418		11,871		15,577		61,034		65,674		288,920
Risk rating 5	—		—		—		3,049		226		328		—		3,603
Risk rating 6	849		2,423		3,564		3,521		2,536		12,662		1,508		27,063
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		1		—		1
Total residential 1-4 family	398,830		294,073		241,937		130,494		116,432		388,680		178,105		1,748,551


	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	38,830		37,566		14,127		33,813		13,098		60,117		6,534		204,085
Risk rating 4	43,478		101,282		182,850		8,284		11,934		11,779		1,201		360,808
Risk rating 5	—		—		—		—		3,142		7,897		—		11,039
Risk rating 6	—		—		—		302		—		1,818		—		2,120
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	82,308		138,848		196,977		42,399		28,174		81,611		7,735		578,052
Total real estate	$	2,397,783	$	2,152,574	$	1,181,773	$	814,706	$	872,408	$	2,169,203	$	852,296	$	10,440,743
Consumer
Risk rating 1	$	5,332	$	3,952	$	1,134	$	637	$	552	$	1,176	$	1,467	$	14,250
Risk rating 2	—		—		—		193		614		—		—		807
Risk rating 3	284,828		276,044		146,256		132,763		118,244		135,266		16,093		1,109,494
Risk rating 4	15,306		2,293		422		1,216		459		907		69		20,672
Risk rating 5	—		633		19		—		8		810		—		1,470
Risk rating 6	215		156		270		970		24		1,386		101		3,122
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	3		—		1		—		—		77		—		81
Total consumer	305,684		283,078		148,102		135,779		119,901		139,622		17,730		1,149,896
Commercial and industrial
Risk rating 1	$	3,450	$	7,692	$	268	$	264	$	16	$	21,298	$	8,832	$	41,820
Risk rating 2	1,590		305		27		198		—		226		781		3,127
Risk rating 3	301,063		126,312		80,636		73,360		71,964		112,017		253,111		1,018,463
Risk rating 4	70,862		120,618		69,963		89,975		81,389		48,496		568,795		1,050,098
Risk rating 5	83,272		14,762		159		1,408		6,815		185		75,891		182,492
Risk rating 6	4,842		2,539		11,204		4,193		5,769		16,559		3,554		48,660
Risk rating 7	—		—		—		—		4,316		202		85		4,603
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	465,079		272,228		162,257		169,398		170,269		198,983		911,049		2,349,263
Agricultural and other
Risk rating 1	$	297	$	266	$	115	$	—	$	—	$	95	$	722	$	1,495
Risk rating 2	140		78		—		2,338		34		115		1,661		4,366
Risk rating 3	85,707		36,004		30,546		4,725		7,986		46,748		131,760		343,476
Risk rating 4	7,627		13,591		2,598		1,671		1,710		8,766		69,179		105,142
Risk rating 5	—		8		204		—		—		593		745		1,550
Risk rating 6	—		58		157		11,137		304		949		944		13,549
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	93,771		50,005		33,620		19,871		10,034		57,266		205,011		469,578
Total	$	3,262,317	$	2,757,885	$	1,525,752	$	1,139,754	$	1,172,612	$	2,565,074	$	1,986,086	$	14,409,480


	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023			2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	—	$	1,826	$	502	$	—	$	2,328
Construction/land development	—			2		168		5		—		88		—		263
Agricultural	—			—		—		—		1		6		—		7
Residential real estate loans
Residential 1-4 family	—			29		28		73		13		126		—		269
Total real estate	—			31		196		78		1,840		722		—		2,867
Consumer	—			51		44		98		63		263		25		544
Commercial and industrial	—			407		1,110		894		911		5,369		466		9,157
Agricultural & other	3,252		*	1		1		2		64		3		164		3,487
Total	$	3,252		$	490	$	1,351	$	1,072	$	2,878	$	6,357	$	655	$	16,055


	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	388,831	$	1,150,598	$	821,373	$	490,153	$	404,061	$	1,718,776	$	536,349	$	5,510,141
Non-performing	—		—		9,215		1,145		761		28,359		333		39,813
Total non-farm/ non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Performing	501,215		918,390		382,954		88,204		55,239		81,028		253,667		2,280,697
Non-performing	—		7,818		1,703		697		618		188		1,326		12,350
Total construction/ land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Performing	$	39,976	$	69,584	$	46,809	$	46,608	$	20,485	$	76,547	$	24,716	$	324,725
Non-performing	—		—		79		—		—		352		—		431
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Performing	$	261,784	$	405,239	$	298,207	$	167,475	$	108,091	$	396,130	$	185,948	$	1,822,874
Non-performing	—		3,958		2,356		3,647		3,236		7,599		590		21,386
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260
Multifamily residential
Performing	$	3,983	$	87,012	$	107,301	$	108,702	$	39,815	$	74,564	$	14,359	$	435,736
Non-performing	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	1,195,789		2,642,599		1,669,997		906,631		632,306		2,383,543		1,017,288		10,448,153
Consumer
Performing	$	255,771	$	256,826	$	215,831	$	109,442	$	110,267	$	198,982	$	3,060	$	1,150,179
Non-performing	159		762		814		539		139		1,089		9		3,511
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Performing	$	616,809	$	382,190	$	156,056	$	87,531	$	111,529	$	273,434	$	680,552	$	2,308,101
Non-performing	2,562		3,186		863		563		2,993		3,243		3,480		16,890
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Performing	$	67,569	$	55,904	$	39,473	$	28,220	$	15,195	$	48,203	$	242,818	$	497,382
Non-performing	71		33		10		—		—		34		364		512
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728


	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	1,056,381	$	851,269	$	509,258	$	456,196	$	679,187	$	1,403,874	$	513,630	$	5,469,795
Non-performing	—		—		4,991		25,803		4,272		126,884		318		162,268
Total non-farm/ non-residential	1,056,381		851,269		514,249		481,999		683,459		1,530,758		513,948		5,632,063
Construction/land development
Performing	777,309		796,098		172,987		128,736		30,860		85,511		141,757		2,133,258
Non-performing	611		—		573		599		3		222		—		2,008
Total construction/ land development	777,920		796,098		173,560		129,335		30,863		85,733		141,757		2,135,266
Agricultural
Performing	$	82,344	$	72,286	$	55,050	$	30,479	$	13,480	$	82,143	$	10,751	$	346,533
Non-performing	—		—		—		—		—		278		—		278
Total agricultural	82,344		72,286		55,050		30,479		13,480		82,421		10,751		346,811
Total commercial real estate loans	$	1,916,645	$	1,719,653	$	742,859	$	641,813	$	727,802	$	1,698,912	$	666,456	$	8,114,140
Residential real estate loans
Residential 1-4 family
Performing	$	397,464	$	292,100	$	239,047	$	127,250	$	114,337	$	380,210	$	177,311	$	1,727,719
Non-performing	1,366		1,973		2,890		3,244		2,095		8,470		794		20,832
Total residential 1-4 family	398,830		294,073		241,937		130,494		116,432		388,680		178,105		1,748,551
Multifamily residential
Performing	$	82,308	$	138,848	$	196,977	$	42,399	$	28,174	$	80,642	$	7,735	$	577,083
Non-performing	—		—		—		—		—		969		—		969
Total multifamily residential	82,308		138,848		196,977		42,399		28,174		81,611		7,735		578,052
Total real estate	2,397,783		2,152,574		1,181,773		814,706		872,408		2,169,203		852,296		10,440,743
Consumer
Performing	$	305,620	$	282,944	$	147,820	$	134,831	$	119,877	$	138,288	$	17,628	$	1,147,008
Non-performing	64		134		282		948		24		1,334		102		2,888
Total consumer	305,684		283,078		148,102		135,779		119,901		139,622		17,730		1,149,896
Commercial and industrial
Performing	$	464,285	$	267,719	$	159,152	$	165,733	$	160,267	$	194,162	$	907,611	$	2,318,929
Non-performing	794		4,509		3,105		3,665		10,002		4,821		3,438		30,334
Total commercial and industrial	465,079		272,228		162,257		169,398		170,269		198,983		911,049		2,349,263
Agricultural and other
Performing	$	93,771	$	50,001	$	33,416	$	19,818	$	10,034	$	56,631	$	204,380	$	468,051
Non-performing	—		4		204		53		—		635		631		1,527
Total agricultural and other	93,771		50,005		33,620		19,871		10,034		57,266		205,011		469,578
Total	$	3,262,317	$	2,757,885	$	1,525,752	$	1,139,754	$	1,172,612	$	2,565,074	$	1,986,086	$	14,409,480


	December 31, 2023
									Combination of Modifications
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Interest Rate Reduction and Term Extension		Principal Reduction and Interest Rate Reduction		Term Extension and Interest Only		Term Extension and Principal Reduction		Post- Modification Outstanding Balance		Percentage of Total Class of Loans Receivable
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	398	$	—	$	—	$	1,537	$	348	$	—	$	16,023	$	—	$	18,306	0.33	%
Construction/land development	—		—		—		149		—		—		—		—		149		0.01	%

Residential real estate loans
Residential 1-4 family	560		598		106		59		516		—		—		116		1,955		0.11	%

Total real estate	958		598		106		1,745		864		—		16,023		116		20,410		0.20	%
Consumer	14		—		1		10		—		5		—		—		30		—	%
Commercial and industrial	2,253		38		42		1,763		74		—		—		—		4,170		0.18	%
Total	$	3,225	$	636	$	149	$	3,518	$	938	$	5	$	16,023	$	116	$	24,610	0.17	%

During the year ended December 31, 2023, the Company restructured approximately $19.5 million in loans to 21 borrowers. The ending balance of these loans as of December 31, 2023, was $21.0 million. The Company considered the financial effect of these loan modifications to borrowers experiencing financial difficulty during the year ended December 31, 2023 immaterial for tabular disclosure inclusion. Three of the modified loans accounted for $18.2 million of the total post-modification outstanding balance. Two of the loans involved the loans being placed on interest only payments for 36 months and the term being extended an additional 36 months while the interest rate was increased by 9 basis points. The third loan involved a new loan being underwritten resulting in the term being extended by approximately 49 months and the interest rate increasing by 3.45 percentage points. None of the $24.6 million in restructured loans held by the Company were considered to be collateral dependent as of December 31, 2023.


	December 31, 2023
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Combination Interest Rate Reduction and Term Extension		Combination Interest Rate Reduction and Principal Reduction		Combination Term Extension and Principal Reduction
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction/land development	—		—		—		—		—		—		—
Agricultural	—		—		—		—		—		—		—
Residential real estate loans									—
Residential 1-4 family	299		105		9		—		328		—		116
Total real estate	299		105		9		—		328		—		116
Consumer	14		—		—		29		—		5		—
Commercial and industrial	—		—		—		—		—		—		—
Total	$	313	$	105	$	9	$	29	$	328	$	5	$	116

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company has modified 21 loans over the past 12 months to borrowers experiencing financial difficulty. The pre-modification balance of the loans was $19.5 million, and the ending balance as of December 31, 2023 was $21.0 million. The $21.0 million balance consists of $905,000 of non-accrual loans and $20.1 million of current loans, of which $1.5 million were 60-89 days past due as of December 31, 2023. The remaining balance of the loans was current as of December 31, 2023.


	December 31, 2022
	Number of Loans	Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
	(Dollars in thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	11	$	4,462	$	1,395	$	598	$	436	$	2,429
Construction/land development	1	216		177		—		—		177

Residential real estate loans
Residential 1-4 family	14	2,115		772		145		290		1,207
Multifamily residential	1	1,130		969		—		—		969
Total real estate	27	7,923		3,313		743		726		4,782
Consumer	2	18		11		—		1		12
Commercial and industrial	15	3,199		748		47		156		951
Total	44	$	11,140	$	4,072	$	790	$	883	$	5,745

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses on loans is adjusted by the same amount. The defaults impact the loss rate by applicable loan pool for the quarterly CECL calculation. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

The Company has purchased loans for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The Company held approximately $130.7 million and $142.5 million in PCD loans, as of December 31, 2023 and 2022, respectively. The balance, as of December 31, 2023, consisted of $130.4 million resulting from the acquisition of Happy and $376,100 from the acquisition of LH-Finance. The balance, as of December 31, 2022, consisted of $142.1 million resulting from the acquisition of Happy and $415,000 from the acquisition of LH-Finance.