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Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Summary of Loans

. A summary of loans at December 31, 2021 and 2020 follows (in thousands):

		2021				2020
Construction and land development		$	145,156			$	122,853
Agricultural real estate			279,001				254,662
1-4 family residential properties			399,932				325,480
Multifamily residential properties			298,974				189,265
Commercial real estate			1,666,764				1,176,290
Loans secured by real estate			2,789,827				2,068,550
Agricultural loans			151,344				137,333
Commercial and industrial loans			834,061				741,819
Consumer loans			78,538				78,023
All other loans			143,738				118,196
Gross loans			3,997,508				3,143,921
Less: Loans held for sale			2,748				1,924
			3,994,760				3,141,997
Less:
Net deferred loan fees, premiums and discounts			1,985				5,502
Allowance for credit losses			54,655				41,910
Net loans		$	3,938,120			$	3,094,585

Allowance for Credit Losses Based on Portfolio Segment

The following tables present the balance in the allowance for credit losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2021, 2020, and 2019 (in thousands):

		Construction and Land Development				Agricultural Real Estate				1-4 Family Residential Properties				Commercial Real Estate				Agricultural Loans				Commercial and Industrial				Consumer Loans				Total
Twelve months ended December 31, 2021
Beginning Balance		$	1,666			$	1,084			$	2,322			$	19,660			$	1,526			$	13,485			$	2,167			$	41,910
Initial allowance on loans purchased with credit deterioration			261				44				328				646				—				795				—				2,074
Provision for credit loss expense			21				129				(160	)			6,415				(544	)			7,940				1,350				15,151
Loans charged off			205				—				371				535				—				3,118				1,405				5,634
Recoveries collected			—				—				211				60				1				139				743				1,154
Ending balance		$	1,743			$	1,257			$	2,330			$	26,246			$	983			$	19,241			$	2,855			$	54,655
Twelve months ended December 31, 2020
Beginning Balance (prior to adoption of ASC 326)		$	1,146			$	1,093			$	1,386			$	11,198			$	1,386			$	9,273			$	1,429			$	26,911
Impact of adopting ASC 326			(113	)			230				756				541				(363	)			155				466				1,672
Provision for credit loss expense			646				(239	)			274				8,581				503				5,869				469				16,103
Loans charged off			13				—				393				829				—				1,991				618				3,844
Recoveries collected			—				—				299				169				—				179				421				1,068
Ending balance		$	1,666			$	1,084			$	2,322			$	19,660			$	1,526			$	13,485			$	2,167			$	41,910
Twelve months ended December 31, 2019
Beginning Balance		$	561			$	1,246			$	1,504			$	11,102			$	951			$	9,893			$	932			$	26,189
Provision for credit loss expense			585				(153	)			1,268				1,827				459				1,053				1,394				6,433
Loans charged off			—				—				1,478				1,743				24				1,828				1,253				6,326
Recoveries collected			—				—				92				12				—				155				356				615
Ending balance		$	1,146			$	1,093			$	1,386			$	11,198			$	1,386			$	9,273			$	1,429			$	26,911

Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans Individually Evaluated

The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of December 31, 2021 (in thousands):

		Collateral																Allowance
		Real Estate				Business Assets				Other				Total				for Credit Losses
Construction and land development		$	483			$	—			$	—			$	483			$	224
1-4 family residential properties			3,703				—				—				3,703				149
Multifamily residential properties			1,746				—				—				1,746				—
Commercial real estate			10,290				—				—				10,290				798
Loans secured by real estate			16,222				—				—				16,222				1,171
Agricultural loans			325				—				—				325				—
Commercial and industrial loans			—				877				368				1,245				582
Consumer loans			—				—				5			5					—
All other loans			—				23				—			23					—
Total loans		$	16,547			$	900			$	373			$	17,820			$	1,753

Credit Risk Profile of Loan Portfolio Based on Risk Rating Category and Payment Activity

. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of December 31, 2021 (in thousands):

		Term Loans by Origination Year																								Revolving
Risk rating		2021				2020				2019				2018				2017				Prior				Loans				Total
December 31, 2021
Construction and land development loans
Pass		$	38,656			$	34,774			$	23,505			$	34,358			$	3,760			$	9,433			$	—			$	144,486
Special mention			110				—				—				—				—				—				—				110
Substandard			—				—				—				483				—				39				—				522
Total		$	38,766			$	34,774			$	23,505			$	34,841			$	3,760			$	9,472			$	—			$	145,118
Agricultural real estate loans
Pass		$	78,793			$	64,159			$	25,713			$	30,203			$	12,142			$	54,808			$	—			$	265,818
Special mention			872				259				4,028				384				69				6,087				—				11,699
Substandard			—				—				392				187				57				1,119				—				1,755
Total		$	79,665			$	64,418			$	30,133			$	30,774			$	12,268			$	62,014			$	—			$	279,272
1-4 family residential property loans
Pass		$	78,889			$	94,404			$	35,554			$	44,248			$	30,735			$	52,131			$	42,800			$	378,761
Special mention			234				—				1,934				499				2,601				1,196				41				6,505
Substandard			355				496				1,534				1,302				3,458				7,250				652				15,047
Total		$	79,478			$	94,900			$	39,022			$	46,049			$	36,794			$	60,577			$	43,493			$	400,313
Commercial real estate loans
Pass		$	568,200			$	417,334			$	299,973			$	174,448			$	150,811			$	304,585			$	—			$	1,915,351
Special mention			3,185				1,206				1,836				1,295				10,609				8,632				—				26,763
Substandard			2,007				714				6,242				1,179				4,646				8,238				—				23,026
Total		$	573,392			$	419,254			$	308,051			$	176,922			$	166,066			$	321,455			$	—			$	1,965,140
Agricultural loans
Pass		$	105,378			$	17,903			$	5,612			$	2,822			$	924			$	1,316			$	—			$	133,955
Special mention			13,725				436				2,648				150				13				64				—				17,036
Substandard			350				18				—				—				—				125				—				493
Total		$	119,453			$	18,357			$	8,260			$	2,972			$	937			$	1,505			$	—			$	151,484
Commercial and industrial loans
Pass		$	279,814			$	167,662			$	119,702			$	76,022			$	22,888			$	302,962			$	—			$	969,050
Special mention			613				399				1,463				182				477				819				—				3,953
Substandard			506				34				133				621				24				1,433				—				2,751
Total		$	280,933			$	168,095			$	121,298			$	76,825			$	23,389			$	305,214			$	—			$	975,754
Consumer loans
Pass		$	27,948			$	19,033			$	16,978			$	5,505			$	4,297			$	1,244			$	—			$	75,005
Special mention			68				54				38				9				—				—				—				169
Substandard			585				58				308				678				43				1,596				—				3,268
Total		$	28,601			$	19,145			$	17,324			$	6,192			$	4,340			$	2,840			$	—			$	78,442
Total loans
Pass		$	1,177,678			$	815,269			$	527,037			$	367,606			$	225,557			$	726,479			$	42,800			$	3,882,426
Special mention			18,807				2,354				11,947				2,519				13,769				16,798				41				66,235
Substandard			3,803				1,320				8,609				4,450				8,228				19,800				652				46,862
Total		$	1,200,288			$	818,943			$	547,593			$	374,575			$	247,554			$	763,077			$	43,493			$	3,995,523

Loan Portfolio Aging Analysis

The following table presents the Company’s loan portfolio aging analysis at December 31, 2021 and 2020 (in thousands):

																										Total
										90 Days																Loans > 90
		30-59 days				60-89 days				or More				Total								Total Loans				days and
		Past Due				Past Due				Past Due				Past Due				Current				Receivable				Accruing
December 31, 2021
Construction and land development		$	159			$	199			$	203			$	561			$	144,557			$	145,118			$	—
Agricultural real estate			—				222				1				223				279,049				279,272				—
1-4 family residential properties			2,532				914				2,012				5,458				394,855				400,313				—
Multifamily residential properties			—				—				1,676				1,676				297,266				298,942				—
Commercial real estate			8,930				640				2,484				12,054				1,654,144				1,666,198				—
Loans secured by real estate			11,621				1,975				6,376				19,972				2,769,871				2,789,843				—
Agricultural loans			—				10				588				598				150,886				151,484				—
Commercial and industrial loans			381				302				1,156				1,839				830,169				832,008				—
Consumer loans			388				47				118				553				77,889				78,442				—
All other loans			1,854				—				—				1,854				141,892				143,746				—
Total loans		$	14,244			$	2,334			$	8,238			$	24,816			$	3,970,707			$	3,995,523			$	—
December 31, 2020
Construction and land development		$	—			$	—			$	128			$	128			$	122,351			$	122,479			$	—
Agricultural real estate			1,198				34				—				1,232				253,109				254,341				—
1-4 family residential properties			1,121				1,105				2,033				4,259				321,503				325,762				—
Multifamily residential properties			—				—				—				—				189,632				189,632				—
Commercial real estate			2,618				341				794				3,753				1,170,547				1,174,300				—
Loans secured by real estate			4,937				1,480				2,955				9,372				2,057,142				2,066,514				—
Agricultural loans			43				—				236				279				137,073				137,352				—
Commercial and industrial loans			2,426				8				1,420				3,854				734,459				738,313				—
Consumer loans			145				50				149				344				77,658				78,002				—
All other loans			—				—				—				—				118,238				118,238				—
Total loans		$	7,551			$	1,538			$	4,760			$	13,849			$	3,124,570			$	3,138,419			$	—

Recorded Balance of Loans on Nonaccrual Loans

The following table presents the Company’s recorded balance of nonaccrual loans at December 31, 2021 and December 31, 2020 (in thousands). This table excludes performing purchased credit deteriorated loans and performing troubled debt restructurings.

		2021								2020
		Nonaccrual with no Allowance for								Nonaccrual with no Allowance for
		Credit Loss				Nonaccrual				Credit Loss				Nonaccrual
Construction and land development		$	25			$	25			$	162			$	162
Agricultural real estate			237				336				359				359
1-4 family residential properties			5,252				5,252				6,747				6,930
Multifamily residential properties			1,982				1,982				2,181				2,181
Commercial real estate			7,554				7,920				7,345				8,760
Loans secured by real estate			15,050				15,515				16,794				18,392
Agricultural loans			560				560				659				659
Commercial and industrial loans			936				1,851				3,677				4,372
Consumer loans			179				179				327				327
Total loans		$	16,725			$	18,105			$	21,457			$	23,750

Recorded Balance of Troubled Debt Restructurings

The following table presents the Company’s recorded balance of troubled debt restructurings at December 31, 2021 and 2020 (in thousands).

Troubled debt restructurings:		2021				2020
Agricultural real estate		$	245			$	—
1-4 family residential properties			1,353				1,603
Commercial real estate			3,355				5,170
Loans secured by real estate			4,953				6,773
Agricultural loans			228				228
Commercial and industrial loans			479				2,389
Consumer loans			109				112
All other loans			23				—
Total		$	5,792			$	9,502
Performing troubled debt restructurings:
Agricultural real estate		$	245			$	—
1-4 family residential properties			882				1,268
Commercial real estate			2,552				3,045
Loans secured by real estate			3,679				4,313
Commercial and industrial loans			179				58
Consumer loans			50				2
All other loans			23				—
Total		$	3,931			$	4,373

Loans Modified as Troubled Debt Restructurings

The following table presents loans modified as TDRs during the years ended December 31, 2021 and 2020 as a result of various modified loan factors (dollars in thousands). The change in the recorded investment from pre-modification to post-modification was not material.

		December 31, 2021										December 31, 2020
		Number of				Recorded				Type of		Number of				Recorded				Type of
		Modifications				Investment				Modifications		Modifications				Investment				Modifications
Agricultural real estate			1			$	245			(a)			—			$	—
1-4 family residential properties			1				183			(a)(b)			2				87			(a)
Commercial real estate			1				679			(a)			4				3,622			(a)
Loans secured by real estate			3				1,107						6				3,709
Commercial and industrial loans			2				254			(a)			4				2,314			(a)
Consumer loans			4				50			(a)			1				8			(a)
All other loans			1				23			(a)			—				—
Total			10			$	1,434						11			$	6,031

Type of modifications:

(a)Change in payment terms

(b)Extension of maturity date

Summary of Purchased Credit Deteriorated (PCD) Loans

During 2021, the Company acquired loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows (in thousands):

		LINCO Acquisition
Purchase price of purchase credit deteriorated loans at acquisition		$	64,647
Allowance for credit losses at acquisition			(2,074	)
Non-credit discount/(premium) at acquisition			(187	)
Fair value of purchased credit deteriorated loans at acquisition		$	62,386

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