The Company uses the discounted cash flow (“DCF”) method to estimate expected losses for all of the 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 ("Q-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. Based on this analysis, management determined that changes to several of the economic factors for the loss driver segments, along with other model improvements and updates, were necessary, and updated models were implemented beginning with the June 30, 2024 allowance for credit losses calculation. The identified loss drivers by segment are included below as of both September 30, 2024 and December 31, 2023.


September 30, 2024
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 (%)
Farmland & Agriculture	1b, 3	National Unemployment (%)
Residential 1-4 Family	1c1, 1c2a, 1c2b	National Unemployment (%) & Housing Price Index (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index (%)
Non-Farm/ Non-Residential CRE	1e1, 1e2	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Non-Depository Financial Institutions, Purchase/Carry Securities, Leases, Other	4a, 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 (%)
Obligations of States and Political Subdivisions	8	National Unemployment (%) & Gross Domestic Product (%)


December 31, 2023
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 the 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 three and nine months ended September 30, 2024, the Company recorded $18.2 million and $31.7 million in provision for credit losses on loans, respectively. $16.7 million of the provision for credit losses recorded during 2024 was used to establish a hurricane reserve for loans located in the Federal Emergency Management Agency ("FEMA") disaster areas impacted by Hurricane Helene, which made landfall during the third quarter of 2024. In addition, during the three months ended September 30, 2024, the Company recorded $1.0 million in provision for unfunded commitments, which completely offset the $1.0 million recovery of credit losses on unfunded commitments that was recorded during the first quarter of 2024. During the three and nine months ended September 30, 2023, the Company recorded $2.8 million and $6.3 million in provision for credit losses on loans, respectively. For the three and nine months ended September 30, 2023, the Company recovered $1.5 million in credit losses on unfunded commitments.


	Three Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	58,673	$	86,842	$	51,354	$	69,635	$	29,352	$	295,856

Loans charged off	—		—		(42)		(741)		(1,218)		(2,001)
Recoveries of loans previously charged off	7		34		54		143		281		519
Net loans recovered (charged off)	7		34		12		(598)		(937)		(1,482)

Provision for credit losses	4,718		9,799		8,059		(8,434)		4,058		18,200
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574


	Nine Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234

Loans charged off	(81)		(1,164)		(260)		(4,500)		(3,072)		(9,077)
Recoveries of loans previously charged off	96		59		149		503		910		1,717
Net loans recovered (charged off)	15		(1,105)		(111)		(3,997)		(2,162)		(7,360)

Provision for credit losses	29,506		19,145		3,676		(28,210)		7,583		31,700
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574


	Three Months Ended September 30, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,275	$	85,158	$	51,732	$	90,474	$	26,044	$	285,683

Loans charged off	(150)		(1,950)		(103)		(183)		(1,063)		(3,449)
Recoveries of loans previously charged off	33		25		22		119		329		528
Net loans recovered (charged off)	(117)		(1,925)		(81)		(64)		(734)		(2,921)

Provision for credit losses	484		(4,680)		3,233		2,059		1,704		2,800
Balance, September 30	$	32,642	$	78,553	$	54,884	$	92,469	$	27,014	$	285,562


	Nine Months Ended September 30, 2023 and 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	(175)		(2,023)		(192)		(7,015)		(3,058)		(12,463)
Recoveries of loans previously charged off	103		517		161		375		900		2,056
Net loans (charged off) recovered	(72)		(1,506)		(31)		(6,640)		(2,158)		(10,407)

Provision for credit loss - loans	471		(13,789)		3,952		9,755		5,911		6,300
Balance, September 30	32,642		78,553		54,884		92,469		27,014		285,562
Loans charged off	(88)		(312)		(77)		(2,142)		(973)		(3,592)
Recoveries of loans previously charged off	10		16		168		208		212		614
Net loans (charged off) recovered	(78)		(296)		91		(1,934)		(761)		(2,978)
Provision for credit loss - loans	1,313		378		885		2,275		799		5,650
Balance, December 31	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234


	September 30, 2024
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	48,086	$	42,025	$	709
Construction/land development	5,403		—		657
Agricultural	737		—		—
Residential real estate loans
Residential 1-4 family	23,905		—		1,495
Multifamily residential	592		—		—
Total real estate	78,723		42,025		2,861
Consumer	7,501		2,340		28
Commercial and industrial	8,511		2,162		2,405
Agricultural & other	1,012		—		62
Total	$	95,747	$	46,527	$	5,356

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


	September 30, 2024
	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	$	4,391	$	837	$	48,795	$	54,023	$	5,442,513	$	5,496,536	$	709
Construction/land development	778		221		6,060		7,059		2,734,360		2,741,419		657
Agricultural	177		198		737		1,112		334,853		335,965		—
Residential real estate loans
Residential 1-4 family	2,329		6,698		25,400		34,427		1,897,925		1,932,352		1,495
Multifamily residential	20,902		—		592		21,494		461,154		482,648		—
Total real estate	28,577		7,954		81,584		118,115		10,870,805		10,988,920		2,861
Consumer	2,928		155		7,529		10,612		1,208,585		1,219,197		28
Commercial and industrial	1,071		567		10,916		12,554		2,072,113		2,084,667		2,405
Agricultural & other	1,120		91		1,074		2,285		528,910		531,195		62
Total	$	33,696	$	8,767	$	101,103	$	143,566	$	14,680,413	$	14,823,979	$	5,356


	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

•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.

The Company’s classified loans include loans in risk ratings 6, 7 and 8. Loans may be classified, but not considered collateral dependent, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for credit loss testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for credit losses on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for credit losses and therefore are not included in collateral dependent loans; (2) of the loans that are above the threshold amount and tested for credit losses after testing, some are considered to not be collateral dependent and are not included in collateral dependent loans.


	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	331	$	74	$	405
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	163,941		312,252		601,970		562,043		230,931		1,021,405		256,875		3,149,417
Risk rating 4	54,483		169,205		457,070		268,482		145,758		665,513		322,795		2,083,306
Risk rating 5	27		—		1,265		—		960		26,353		383		28,988
Risk rating 6	—		—		8,155		5,720		23,967		196,483		95		234,420
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Risk rating 1	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Risk rating 2	—		136		—		—		—		165		37		338
Risk rating 3	535,815		411,289		424,306		84,734		41,633		62,671		65,049		1,625,497
Risk rating 4	131,982		189,494		466,044		79,663		9,720		24,720		205,071		1,106,694
Risk rating 5	—		623		1,431		—		—		—		—		2,054
Risk rating 6	—		73		2,559		1,909		299		933		981		6,754
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		72		—		—		—		72
Total construction/land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Risk rating 1	$	700	$	—	$	1,462	$	—	$	—	$	—	$	—	$	2,162
Risk rating 2	278		241		—		1,853		—		—		—		2,372
Risk rating 3	35,210		34,159		32,111		15,598		21,231		44,924		31,107		214,340
Risk rating 4	13,118		10,178		27,185		19,868		10,503		26,221		5,214		112,287
Risk rating 5	—		—		—		—		—		571		—		571
Risk rating 6	—		—		—		1,621		1,084		1,335		193		4,233
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	92	$	2	$	94
Risk rating 2	—		230		—		—		—		11		5		246
Risk rating 3	181,112		232,086		368,096		232,800		131,378		361,150		114,114		1,620,736
Risk rating 4	6,592		22,038		44,936		24,590		20,640		72,339		82,201		273,336
Risk rating 5	—		1,015		601		293		397		1,073		778		4,157
Risk rating 6	—		1,533		8,904		3,568		4,276		14,977		523		33,781
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352


	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	1,876		11,133		34,052		36,223		52,758		76,818		11,449		224,309
Risk rating 4	—		689		130,725		10,228		59,023		20,830		14,970		236,465
Risk rating 5	—		—		—		—		—		—		—		—
Risk rating 6	—		—		21,052		592		—		230		—		21,874
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Risk rating 1	$	4,480	$	2,582	$	1,667	$	1,291	$	642	$	1,064	$	1,506	$	13,232
Risk rating 2	—		—		—		—		—		150		—		150
Risk rating 3	210,168		213,187		217,177		181,131		90,901		252,855		1,124		1,166,543
Risk rating 4	4,342		4,633		5,151		1,381		166		5,688		184		21,545
Risk rating 5	—		433		—		214		156		83		—		886
Risk rating 6	71		5,287		4,533		343		583		5,944		65		16,826
Risk rating 7	—		9		—		—		—		—		—		9
Risk rating 8	—		—		—		6		—		—		—		6
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Risk rating 1	$	3,402	$	1,207	$	793	$	651	$	219	$	21,338	$	10,740	$	38,350
Risk rating 2	48		132		1,074		185		5		19		2,142		3,605
Risk rating 3	72,780		511,791		239,265		62,304		42,767		210,038		205,363		1,344,308
Risk rating 4	57,244		34,109		29,322		29,917		8,695		66,115		308,873		534,275
Risk rating 5	—		86		485		4,526		33		—		1,305		6,435
Risk rating 6	38		12,082		68,479		13,365		34		13,526		50,159		157,683
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		1		—		—		1		9		—		11
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Risk rating 1	$	643	$	378	$	222	$	16	$	105	$	—	$	782	$	2,146
Risk rating 2	537		304		28		—		—		—		2,447		3,316
Risk rating 3	45,944		51,932		39,142		27,332		24,600		32,955		106,271		328,176
Risk rating 4	30,475		4,469		8,446		6,964		388		15,305		127,762		193,809
Risk rating 5	1,915		—		312		—		61		543		5		2,836
Risk rating 6	—		4		—		46		59		683		120		912
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979


	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


	September 30, 2024
	Gross Loan Write-Offs by Origination Year
	2024			2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	780	$	1	$	383	$	—	$	1,164
Construction/land development	—			—		—		48		33		—		—		81
Agricultural	—			—		—		—		—		—		—		—
Residential real estate loans
Residential 1-4 family	—			1		100		1		26		132		—		260

Total real estate	—			1		100		829		60		515		—		1,505
Consumer	4			86		75		40		109		485		—		799
Commercial and industrial	—			557		89		292		108		199		3,255		4,500
Agricultural & other	2,202		*	71		—		—		—		—		—		2,273
Total	$	2,206		$	715	$	264	$	1,161	$	277	$	1,199	$	3,255	$	9,077


	December 31, 2023
	Gross Loan Write-Offs 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


	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	218,451	$	481,457	$	1,068,305	$	835,292	$	387,389	$	1,871,118	$	580,142	$	5,442,154
Non-performing	—		—		155		953		14,227		38,967		80		54,382
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Performing	$	667,797	$	601,542	$	891,810	$	164,990	$	51,470	$	87,594	$	270,156	$	2,735,359
Non-performing	—		73		2,530		1,398		182		895		982		6,060
Total construction/ land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Performing	$	49,306	$	44,578	$	60,758	$	38,875	$	32,818	$	72,572	$	36,321	$	335,228
Non-performing	—		—		—		65		—		479		193		737
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Performing	$	187,704	$	255,185	$	416,753	$	257,574	$	153,384	$	437,827	$	197,230	$	1,905,657
Non-performing	—		1,717		5,784		3,677		3,307		11,817		393		26,695
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352
Multifamily residential
Performing	$	1,876	$	11,822	$	164,927	$	46,451	$	111,781	$	97,878	$	26,419	$	461,154
Non-performing	—		—		20,902		592		—		—		—		21,494
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Performing	$	218,988	$	225,480	$	225,577	$	184,063	$	91,893	$	259,861	$	2,808	$	1,208,670
Non-performing	73		651		2,951		303		555		5,923		71		10,527
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Performing	$	133,512	$	556,469	$	336,274	$	109,586	$	51,740	$	306,000	$	577,929	$	2,071,510
Non-performing	—		2,939		3,144		1,362		14		5,045		653		13,157
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Performing	$	79,514	$	57,083	$	48,150	$	34,312	$	25,209	$	48,579	$	237,274	$	530,121
Non-performing	—		4		—		46		4		907		113		1,074
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979


	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


	September 30, 2024
									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
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	389	$	—	$	—	$	1,307	$	342	$	—	$	15,874	$	—	$	17,912	0.33	%
Construction/land development	—		—		—		78		—		—		—		—		78		—

Residential real estate loans
Residential 1-4 family	1,061		951		103		23		606		—		—		117		2,861		0.15

Total real estate	1,450		951		103		1,408		948		—		15,874		117		20,851		0.19
Consumer	6		—		—		9		—		3		—		—		18		—
Commercial and industrial	2,308		—		—		992		74		—		—		—		3,374		0.16

Total	$	3,764	$	951	$	103	$	2,409	$	1,022	$	3	$	15,874	$	117	$	24,243	0.16	%


	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
	(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 nine months ended September 30, 2024, the Company restructured approximately $1.2 million in loans to eight borrowers. The ending balance of these loans as of September 30, 2024, was $1.1 million. During the nine months ended September 30, 2023, the Company restructured approximately $19.4 million in loans to 18 borrowers. The ending balance of these loans as of September 30, 2023, was $20.8 million. The Company considered the financial effect of these loan modifications to borrowers experiencing financial difficulty during the nine months ended September 30, 2024 and September 30, 2023 as well as the unadvanced balances to these borrowers immaterial for tabular disclosure inclusion.

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 11 loans over the past 12 months to borrowers experiencing financial difficulty. The pre-modification balance of the loans was $1.4 million, and the ending balance as of September 30, 2024 was $1.3 million. The $1.3 million balance consists of $1.1 million of non-accrual loans and $193,000 of current loans, of which $92,000 were 60-89 days past due. The remaining balance of the loans was current as of September 30, 2024.

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.