XML 36 R26.htm IDEA: XBRL DOCUMENT v3.23.3
Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Summary of Loans

A summary of loans at September 30, 2023 and December 31, 2022 follows (in thousands):

 

 

 

September 30, 2023

 

 

December 31, 2022

 

Construction and land development

 

$

191,344

 

 

$

144,387

 

Agricultural real estate

 

 

401,115

 

 

 

410,790

 

1-4 family residential properties

 

 

539,492

 

 

 

440,018

 

Multifamily residential properties

 

 

329,684

 

 

 

295,073

 

Commercial real estate

 

 

2,427,494

 

 

 

2,036,243

 

Loans secured by real estate

 

 

3,889,129

 

 

 

3,326,511

 

Agricultural loans

 

 

179,360

 

 

 

166,695

 

Commercial and industrial loans

 

 

1,250,800

 

 

 

1,085,004

 

Consumer loans

 

 

100,854

 

 

 

97,730

 

All other loans

 

 

177,783

 

 

 

159,499

 

Total gross loans

 

 

5,597,926

 

 

 

4,835,439

 

Less: loans held for sale

 

 

6,233

 

 

 

338

 

 

 

5,591,693

 

 

 

4,835,101

 

Less:

 

 

 

 

 

 

Net deferred loan fees, premiums and discounts

 

 

57,861

 

 

 

9,227

 

Allowance for credit losses

 

 

68,241

 

 

 

59,093

 

Net loans

 

$

5,465,591

 

 

$

4,766,781

 
Allowance for Credit Losses Based on Portfolio Segment

The following table presents the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2023 (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

 

Three months ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,208

 

 

$

1,370

 

 

$

3,247

 

 

$

28,014

 

 

$

524

 

 

$

21,544

 

 

$

1,812

 

 

$

58,719

 

Initial allowance on loans purchased with credit deterioration

 

 

308

 

 

 

—

 

 

 

124

 

 

 

1,066

 

 

 

—

 

 

 

2,273

 

 

 

20

 

 

 

3,791

 

Provision for credit loss expense

 

 

219

 

 

 

27

 

 

 

629

 

 

 

2,727

 

 

 

245

 

 

 

1,697

 

 

 

367

 

 

 

5,911

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

21

 

 

 

—

 

 

 

132

 

 

 

—

 

 

 

368

 

 

 

521

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

91

 

 

 

16

 

 

 

3

 

 

 

81

 

 

 

150

 

 

 

341

 

Ending balance

 

$

2,735

 

 

$

1,397

 

 

$

4,070

 

 

$

31,823

 

 

$

640

 

 

$

25,595

 

 

$

1,981

 

 

$

68,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,250

 

 

$

1,433

 

 

$

3,742

 

 

$

28,157

 

 

$

585

 

 

$

20,808

 

 

$

2,118

 

 

$

59,093

 

Initial allowance on loans purchased with credit deterioration

 

 

308

 

 

 

—

 

 

 

124

 

 

 

1,066

 

 

 

—

 

 

 

2,273

 

 

 

20

 

 

 

3,791

 

Provision for credit loss expense

 

 

191

 

 

 

(36

)

 

 

88

 

 

 

2,278

 

 

 

450

 

 

 

2,202

 

 

 

379

 

 

 

5,552

 

Loans charged off

 

 

14

 

 

 

—

 

 

 

77

 

 

 

25

 

 

 

408

 

 

 

62

 

 

 

995

 

 

 

1,581

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

193

 

 

 

347

 

 

 

13

 

 

 

374

 

 

 

459

 

 

 

1,386

 

Ending balance

 

$

2,735

 

 

$

1,397

 

 

$

4,070

 

 

$

31,823

 

 

$

640

 

 

$

25,595

 

 

$

1,981

 

 

$

68,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2022 and for the year ended December 31, 2022 (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

 

Three months ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,042

 

 

$

2,112

 

 

$

3,523

 

 

$

28,856

 

 

$

886

 

 

$

19,496

 

 

$

2,160

 

 

$

59,075

 

Provision for credit loss expense

 

 

1

 

 

 

(674

)

 

 

269

 

 

 

(796

)

 

 

(246

)

 

 

1,271

 

 

 

317

 

 

 

142

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

45

 

 

 

7

 

 

 

—

 

 

 

389

 

 

 

392

 

 

 

833

 

Recoveries collected

 

 

100

 

 

 

—

 

 

 

19

 

 

 

8

 

 

 

38

 

 

 

63

 

 

 

165

 

 

 

393

 

Ending balance

 

$

2,143

 

 

$

1,438

 

 

$

3,766

 

 

$

28,061

 

 

$

678

 

 

$

20,441

 

 

$

2,250

 

 

$

58,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,743

 

 

$

1,257

 

 

$

2,330

 

 

$

26,246

 

 

$

983

 

 

$

19,241

 

 

$

2,855

 

 

$

54,655

 

Initial allowance on loans purchased with credit deterioration

 

 

272

 

 

 

—

 

 

 

3

 

 

 

478

 

 

 

—

 

 

 

94

 

 

 

16

 

 

 

863

 

Provision for credit loss expense

 

 

30

 

 

 

181

 

 

 

1,355

 

 

 

1,384

 

 

 

(250

)

 

 

1,343

 

 

 

(42

)

 

 

4,001

 

Loans charged off

 

 

2

 

 

 

—

 

 

 

186

 

 

 

414

 

 

 

93

 

 

 

424

 

 

 

1,059

 

 

 

2,178

 

Recoveries collected

 

 

100

 

 

 

—

 

 

 

264

 

 

 

367

 

 

 

38

 

 

 

187

 

 

 

480

 

 

 

1,436

 

Ending balance

 

$

2,143

 

 

$

1,438

 

 

$

3,766

 

 

$

28,061

 

 

$

678

 

 

$

20,441

 

 

$

2,250

 

 

$

58,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance (prior to adoption of ASC 326)

 

$

1,743

 

 

$

1,257

 

 

$

2,330

 

 

$

26,246

 

 

$

983

 

 

$

19,241

 

 

$

2,855

 

 

$

54,655

 

Impact of adopting ASC 326

 

 

272

 

 

 

—

 

 

 

3

 

 

 

478

 

 

 

—

 

 

 

94

 

 

 

16

 

 

 

863

 

Provision for credit loss expense

 

 

137

 

 

 

176

 

 

 

1,241

 

 

 

1,462

 

 

 

(359

)

 

 

2,135

 

 

 

14

 

 

 

4,806

 

Loans charged off

 

 

2

 

 

 

—

 

 

 

191

 

 

 

414

 

 

 

93

 

 

 

870

 

 

 

1,380

 

 

 

2,950

 

Recoveries collected

 

 

100

 

 

 

—

 

 

 

359

 

 

 

385

 

 

 

54

 

 

 

208

 

 

 

613

 

 

 

1,719

 

Ending balance

 

$

2,250

 

 

$

1,433

 

 

$

3,742

 

 

$

28,157

 

 

$

585

 

 

$

20,808

 

 

$

2,118

 

 

$

59,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
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 September 30, 2023 (in thousands):

 

 

 

Collateral

 

 

Allowance

 

 

 

Real Estate

 

 

Business
Assets

 

 

Other

 

 

Total

 

 

for Credit
Losses

 

Construction and land development

 

$

421

 

 

$

—

 

 

$

—

 

 

$

421

 

 

$

192

 

Agricultural real estate

 

 

—

 

 

 

—

 

 

 

16

 

 

 

16

 

 

 

—

 

1-4 family residential properties

 

 

1,258

 

 

 

—

 

 

 

—

 

 

 

1,258

 

 

 

—

 

Multifamily residential properties

 

 

1,080

 

 

 

—

 

 

 

—

 

 

 

1,080

 

 

 

—

 

Commercial real estate

 

 

9,334

 

 

 

—

 

 

 

—

 

 

 

9,334

 

 

 

—

 

Loans secured by real estate

 

 

12,093

 

 

 

—

 

 

 

16

 

 

 

12,109

 

 

 

192

 

Agricultural loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial loans

 

 

82

 

 

 

1,159

 

 

 

—

 

 

 

1,241

 

 

 

183

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total loans

 

$

12,175

 

 

$

1,159

 

 

$

16

 

 

$

13,350

 

 

$

375

 
Credit Risk Profile of Loan Portfolio on Amortized Cost Basis Based on Risk Rating Category

The following tables present the credit risk profile of the Company’s loan portfolio on amortized cost basis based on risk rating category and year of origination as of September 30, 2023 (in thousands):

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

Risk rating

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Total

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development loans

 

Pass

 

$

49,485

 

 

$

78,795

 

 

$

29,330

 

 

$

6,101

 

 

$

10,218

 

 

$

14,834

 

 

$

—

 

 

$

188,763

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

443

 

 

 

—

 

 

 

443

 

Total

 

$

49,485

 

 

$

78,795

 

 

$

29,330

 

 

$

6,101

 

 

$

10,218

 

 

$

15,277

 

 

$

—

 

 

$

189,206

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

14

 

 

$

—

 

 

$

—

 

 

$

14

 

Agricultural real estate loans

 

Pass

 

$

12,265

 

 

$

172,028

 

 

$

58,648

 

 

$

56,006

 

 

$

21,114

 

 

$

74,179

 

 

$

—

 

 

$

394,240

 

Special mention

 

 

209

 

 

 

—

 

 

 

694

 

 

 

—

 

 

 

1,170

 

 

 

1,945

 

 

 

—

 

 

 

4,018

 

Substandard

 

 

—

 

 

 

—

 

 

 

375

 

 

 

—

 

 

 

—

 

 

 

1,201

 

 

 

—

 

 

 

1,576

 

Total

 

$

12,474

 

 

$

172,028

 

 

$

59,717

 

 

$

56,006

 

 

$

22,284

 

 

$

77,325

 

 

$

—

 

 

$

399,834

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

1-4 family residential property loans

 

Pass

 

$

40,228

 

 

$

101,055

 

 

$

101,609

 

 

$

80,368

 

 

$

27,477

 

 

$

90,403

 

 

$

71,412

 

 

$

512,552

 

Special mention

 

 

—

 

 

 

849

 

 

 

3,234

 

 

 

—

 

 

 

—

 

 

 

3,825

 

 

 

10

 

 

 

7,918

 

Substandard

 

 

96

 

 

 

820

 

 

 

543

 

 

 

406

 

 

 

370

 

 

 

8,953

 

 

 

41

 

 

 

11,229

 

Total

 

$

40,324

 

 

$

102,724

 

 

$

105,386

 

 

$

80,774

 

 

$

27,847

 

 

$

103,181

 

 

$

71,463

 

 

$

531,699

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

14

 

 

$

63

 

 

$

—

 

 

$

77

 

Commercial real estate loans

 

Pass

 

$

157,527

 

 

$

721,955

 

 

$

578,816

 

 

$

336,064

 

 

$

245,896

 

 

$

645,950

 

 

$

—

 

 

$

2,686,208

 

Special mention

 

 

3,700

 

 

 

2,735

 

 

 

1,348

 

 

 

2,326

 

 

 

1,614

 

 

 

7,987

 

 

 

—

 

 

 

19,710

 

Substandard

 

 

—

 

 

 

4,231

 

 

 

537

 

 

 

31

 

 

 

792

 

 

 

8,392

 

 

 

—

 

 

 

13,983

 

Total

 

$

161,227

 

 

$

728,921

 

 

$

580,701

 

 

$

338,421

 

 

$

248,302

 

 

$

662,329

 

 

$

—

 

 

$

2,719,901

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

25

 

 

$

—

 

 

$

—

 

 

$

25

 

Agricultural loans

 

Pass

 

$

113,694

 

 

$

40,523

 

 

$

16,470

 

 

$

4,355

 

 

$

1,961

 

 

$

2,399

 

 

$

—

 

 

$

179,402

 

Special mention

 

 

6

 

 

 

18

 

 

 

—

 

 

 

—

 

 

 

15

 

 

 

—

 

 

 

—

 

 

 

39

 

Substandard

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

6

 

Total

 

$

113,700

 

 

$

40,541

 

 

$

16,473

 

 

$

4,355

 

 

$

1,979

 

 

$

2,399

 

 

$

—

 

 

$

179,447

 

Current period gross writeoffs

 

$

—

 

 

$

276

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

132

 

 

$

—

 

 

$

408

 

Commercial and industrial loans

 

Pass

 

$

243,700

 

 

$

321,790

 

 

$

241,780

 

 

$

154,578

 

 

$

86,721

 

 

$

327,485

 

 

$

—

 

 

$

1,376,054

 

Special mention

 

 

50

 

 

 

1,634

 

 

 

10,634

 

 

 

7,510

 

 

 

647

 

 

 

21,563

 

 

 

—

 

 

 

42,038

 

Substandard

 

 

—

 

 

 

521

 

 

 

876

 

 

 

71

 

 

 

34

 

 

 

842

 

 

 

—

 

 

 

2,344

 

Total

 

$

243,750

 

 

$

323,945

 

 

$

253,290

 

 

$

162,159

 

 

$

87,402

 

 

$

349,890

 

 

$

—

 

 

$

1,420,436

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

49

 

 

$

—

 

 

$

13

 

 

$

—

 

 

$

62

 

Consumer loans

 

Pass

 

$

8,929

 

 

$

44,835

 

 

$

24,253

 

 

$

12,165

 

 

$

5,427

 

 

$

2,930

 

 

$

—

 

 

$

98,539

 

Special mention

 

 

—

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9

 

Substandard

 

 

44

 

 

 

434

 

 

 

253

 

 

 

160

 

 

 

61

 

 

 

42

 

 

 

—

 

 

 

994

 

Total

 

$

8,973

 

 

$

45,278

 

 

$

24,506

 

 

$

12,325

 

 

$

5,488

 

 

$

2,972

 

 

$

—

 

 

$

99,542

 

Current period gross writeoffs

 

$

—

 

 

$

57

 

 

$

83

 

 

$

1

 

 

$

9

 

 

$

845

 

 

$

—

 

 

$

995

 

Total loans

 

Pass

 

$

625,828

 

 

$

1,480,981

 

 

$

1,050,906

 

 

$

649,637

 

 

$

398,814

 

 

$

1,158,180

 

 

$

71,412

 

 

$

5,435,758

 

Special mention

 

 

3,965

 

 

 

5,245

 

 

 

15,910

 

 

 

9,836

 

 

 

3,446

 

 

 

35,320

 

 

 

10

 

 

 

73,732

 

Substandard

 

 

140

 

 

 

6,006

 

 

 

2,587

 

 

 

668

 

 

 

1,260

 

 

 

19,873

 

 

 

41

 

 

 

30,575

 

Total

 

$

629,933

 

 

$

1,492,232

 

 

$

1,069,403

 

 

$

660,141

 

 

$

403,520

 

 

$

1,213,373

 

 

$

71,463

 

 

$

5,540,065

 

Current period gross writeoffs

 

$

—

 

 

$

333

 

 

$

83

 

 

$

50

 

 

$

62

 

 

$

1,053

 

 

$

—

 

 

$

1,581

 

 

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2022 (in thousands):

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

Risk rating

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Loans

 

 

Total

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development loans

 

Pass

 

$

63,846

 

 

$

39,790

 

 

$

12,558

 

 

$

15,787

 

 

$

1,210

 

 

$

10,601

 

 

$

—

 

 

$

143,792

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14

 

 

 

—

 

 

 

458

 

 

 

—

 

 

 

472

 

Total

 

$

63,846

 

 

$

39,790

 

 

$

12,558

 

 

$

15,801

 

 

$

1,210

 

 

$

11,059

 

 

$

—

 

 

$

144,264

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2

 

 

$

—

 

 

$

2

 

Agricultural real estate loans

 

Pass

 

$

171,833

 

 

$

67,115

 

 

$

58,283

 

 

$

23,820

 

 

$

27,573

 

 

$

52,799

 

 

$

—

 

 

$

401,423

 

Special mention

 

 

1,123

 

 

 

—

 

 

 

490

 

 

 

1,240

 

 

 

273

 

 

 

3,121

 

 

 

—

 

 

 

6,247

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,383

 

 

 

1,274

 

 

 

—

 

 

 

2,657

 

Total

 

$

172,956

 

 

$

67,115

 

 

$

58,773

 

 

$

25,060

 

 

$

29,229

 

 

$

57,194

 

 

$

—

 

 

$

410,327

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

1-4 family residential property loans

 

Pass

 

$

94,377

 

 

$

86,717

 

 

$

78,977

 

 

$

27,580

 

 

$

30,809

 

 

$

63,050

 

 

$

43,722

 

 

$

425,232

 

Special mention

 

 

169

 

 

 

218

 

 

 

1

 

 

 

44

 

 

 

238

 

 

 

1,000

 

 

 

—

 

 

 

1,670

 

Substandard

 

 

1,060

 

 

 

566

 

 

 

529

 

 

 

295

 

 

 

2,749

 

 

 

8,079

 

 

 

—

 

 

 

13,278

 

Total

 

$

95,606

 

 

$

87,501

 

 

$

79,507

 

 

$

27,919

 

 

$

33,796

 

 

$

72,129

 

 

$

43,722

 

 

$

440,180

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

67

 

 

$

13

 

 

$

—

 

 

$

111

 

 

$

—

 

 

$

191

 

Commercial real estate loans

 

Pass

 

$

558,921

 

 

$

509,614

 

 

$

319,049

 

 

$

239,564

 

 

$

211,505

 

 

$

453,076

 

 

$

—

 

 

$

2,291,729

 

Special mention

 

 

2,187

 

 

 

1,287

 

 

 

769

 

 

 

1,508

 

 

 

952

 

 

 

8,503

 

 

 

—

 

 

 

15,206

 

Substandard

 

 

3,783

 

 

 

478

 

 

 

794

 

 

 

873

 

 

 

5,394

 

 

 

6,100

 

 

 

—

 

 

 

17,422

 

Total

 

$

564,891

 

 

$

511,379

 

 

$

320,612

 

 

$

241,945

 

 

$

217,851

 

 

$

467,679

 

 

$

—

 

 

$

2,324,357

 

Current period gross writeoffs

 

$

250

 

 

$

22

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

142

 

 

$

—

 

 

$

414

 

Agricultural loans

 

Pass

 

$

137,327

 

 

$

18,783

 

 

$

3,433

 

 

$

3,918

 

 

$

915

 

 

$

254

 

 

$

—

 

 

$

164,630

 

Special mention

 

 

1,178

 

 

 

—

 

 

 

—

 

 

 

756

 

 

 

66

 

 

 

109

 

 

 

—

 

 

 

2,109

 

Substandard

 

 

53

 

 

 

—

 

 

 

—

 

 

 

46

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

99

 

Total

 

$

138,558

 

 

$

18,783

 

 

$

3,433

 

 

$

4,720

 

 

$

981

 

 

$

363

 

 

$

—

 

 

$

166,838

 

Current period gross writeoffs

 

$

—

 

 

$

93

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

93

 

Commercial and industrial loans

 

Pass

 

$

450,001

 

 

$

226,038

 

 

$

172,208

 

 

$

63,906

 

 

$

61,929

 

 

$

247,404

 

 

$

—

 

 

$

1,221,486

 

Special mention

 

 

469

 

 

 

640

 

 

 

10,095

 

 

 

570

 

 

 

7,280

 

 

 

158

 

 

 

—

 

 

 

19,212

 

Substandard

 

 

346

 

 

 

418

 

 

 

184

 

 

 

35

 

 

 

157

 

 

 

633

 

 

 

—

 

 

 

1,773

 

Total

 

$

450,816

 

 

$

227,096

 

 

$

182,487

 

 

$

64,511

 

 

$

69,366

 

 

$

248,195

 

 

$

—

 

 

$

1,242,471

 

Current period gross writeoffs

 

$

39

 

 

$

311

 

 

$

39

 

 

$

439

 

 

$

23

 

 

$

19

 

 

$

—

 

 

$

870

 

Consumer loans

 

Pass

 

$

48,600

 

 

$

21,088

 

 

$

12,101

 

 

$

7,968

 

 

$

1,945

 

 

$

5,630

 

 

$

—

 

 

$

97,332

 

Special mention

 

 

—

 

 

 

18

 

 

 

1

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

24

 

Substandard

 

 

69

 

 

 

246

 

 

 

3

 

 

 

43

 

 

 

52

 

 

 

6

 

 

 

—

 

 

 

419

 

Total

 

$

48,669

 

 

$

21,352

 

 

$

12,105

 

 

$

8,011

 

 

$

2,002

 

 

$

5,636

 

 

$

—

 

 

$

97,775

 

Current period gross writeoffs

 

$

22

 

 

$

177

 

 

$

89

 

 

$

10

 

 

$

7

 

 

$

1,075

 

 

$

—

 

 

$

1,380

 

Total loans

 

Pass

 

$

1,524,905

 

 

$

969,145

 

 

$

656,609

 

 

$

382,543

 

 

$

335,886

 

 

$

832,814

 

 

$

43,722

 

 

$

4,745,624

 

Special mention

 

 

5,126

 

 

 

2,163

 

 

 

11,356

 

 

 

4,118

 

 

 

8,814

 

 

 

12,891

 

 

 

—

 

 

 

44,468

 

Substandard

 

 

5,311

 

 

 

1,708

 

 

 

1,510

 

 

 

1,306

 

 

 

9,735

 

 

 

16,550

 

 

 

—

 

 

 

36,120

 

Total

 

$

1,535,342

 

 

$

973,016

 

 

$

669,475

 

 

$

387,967

 

 

$

354,435

 

 

$

862,255

 

 

$

43,722

 

 

$

4,826,212

 

Current period gross writeoffs

 

$

311

 

 

$

603

 

 

$

195

 

 

$

462

 

 

$

30

 

 

$

1,349

 

 

$

—

 

 

$

2,950

 

 
Loan Portfolio Aging Analysis

The following table presents the Company’s loan portfolio aging analysis at September 30, 2023 and December 31, 2022 (in thousands):

 

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

90 Days or
More
Past Due

 

 

Total Past
Due

 

 

Current

 

 

Total Loans
Receivable

 

 

Total Loans
> 90 Days and
Accruing

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

130

 

 

$

—

 

 

$

450

 

 

$

580

 

 

$

188,626

 

 

$

189,206

 

 

$

—

 

Agricultural real estate

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

399,833

 

 

 

399,834

 

 

 

—

 

1-4 family residential properties

 

 

2,917

 

 

 

781

 

 

 

630

 

 

 

4,328

 

 

 

527,371

 

 

 

531,699

 

 

 

—

 

Multifamily residential properties

 

 

4

 

 

 

—

 

 

 

550

 

 

 

554

 

 

 

326,513

 

 

 

327,067

 

 

 

—

 

Commercial real estate

 

 

895

 

 

 

49

 

 

 

3,625

 

 

 

4,569

 

 

 

2,388,265

 

 

 

2,392,834

 

 

 

—

 

Loans secured by real estate

 

 

3,946

 

 

 

830

 

 

 

5,256

 

 

 

10,032

 

 

 

3,830,608

 

 

 

3,840,640

 

 

 

—

 

Agricultural loans

 

 

5

 

 

 

—

 

 

 

5

 

 

 

10

 

 

 

179,437

 

 

 

179,447

 

 

 

—

 

Commercial and industrial loans

 

 

697

 

 

 

231

 

 

 

626

 

 

 

1,554

 

 

 

1,241,099

 

 

 

1,242,653

 

 

 

—

 

Consumer loans

 

 

854

 

 

 

336

 

 

 

169

 

 

 

1,359

 

 

 

98,183

 

 

 

99,542

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

177,783

 

 

 

177,783

 

 

 

—

 

Total loans

 

$

5,502

 

 

$

1,397

 

 

$

6,056

 

 

$

12,955

 

 

$

5,527,110

 

 

$

5,540,065

 

 

$

—

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

20

 

 

$

14

 

 

$

449

 

 

$

483

 

 

$

143,781

 

 

$

144,264

 

 

$

—

 

Agricultural real estate

 

 

20

 

 

 

6

 

 

 

1

 

 

 

27

 

 

 

410,300

 

 

 

410,327

 

 

 

—

 

1-4 family residential properties

 

 

1,706

 

 

 

1,092

 

 

 

896

 

 

 

3,694

 

 

 

436,486

 

 

 

440,180

 

 

 

—

 

Multifamily residential properties

 

 

—

 

 

 

—

 

 

 

548

 

 

 

548

 

 

 

293,798

 

 

 

294,346

 

 

 

—

 

Commercial real estate

 

 

494

 

 

 

205

 

 

 

3,654

 

 

 

4,353

 

 

 

2,025,658

 

 

 

2,030,011

 

 

 

—

 

Loans secured by real estate

 

 

2,240

 

 

 

1,317

 

 

 

5,548

 

 

 

9,105

 

 

 

3,310,023

 

 

 

3,319,128

 

 

 

—

 

Agricultural loans

 

 

—

 

 

 

53

 

 

 

29

 

 

 

82

 

 

 

166,756

 

 

 

166,838

 

 

 

—

 

Commercial and industrial loans

 

 

716

 

 

 

24

 

 

 

854

 

 

 

1,594

 

 

 

1,081,366

 

 

 

1,082,960

 

 

 

—

 

Consumer loans

 

 

326

 

 

 

195

 

 

 

278

 

 

 

799

 

 

 

96,976

 

 

 

97,775

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

159,511

 

 

 

159,511

 

 

 

—

 

Total loans

 

$

3,282

 

 

$

1,589

 

 

$

6,709

 

 

$

11,580

 

 

$

4,814,632

 

 

$

4,826,212

 

 

$

—

 
Amortized Cost Basis of Loans on Nonaccrual Status and Nonaccrual Loans Individually Evaluated

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded as of September 30, 2023 and December 31, 2022 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

Nonaccrual
with no
Allowance for

 

 

Total

 

 

Nonaccrual
with no
Allowance for

 

 

Total

 

 

 

Credit Loss

 

 

Nonaccrual

 

 

Credit Loss

 

 

Nonaccrual

 

Construction and land development

 

$

—

 

 

$

—

 

 

$

14

 

 

$

14

 

Agricultural real estate

 

 

1,227

 

 

 

1,227

 

 

 

1,258

 

 

 

1,258

 

1-4 family residential properties

 

 

4,763

 

 

 

5,037

 

 

 

4,532

 

 

 

4,943

 

Multifamily residential properties

 

 

—

 

 

 

—

 

 

 

672

 

 

 

672

 

Commercial real estate

 

 

10,679

 

 

 

11,131

 

 

 

7,640

 

 

 

7,640

 

Loans secured by real estate

 

 

16,669

 

 

 

17,395

 

 

 

14,116

 

 

 

14,527

 

Agricultural loans

 

 

5

 

 

 

5

 

 

 

57

 

 

 

57

 

Commercial and industrial loans

 

 

1,328

 

 

 

2,025

 

 

 

1,098

 

 

 

1,098

 

Consumer loans

 

 

428

 

 

 

434

 

 

 

274

 

 

 

274

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total loans

 

$

18,430

 

 

$

19,859

 

 

$

15,545

 

 

$

15,956

 
Amortized Cost Basis of Loans Experiencing Difficulty and Modified

The following table shows the amortized cost of loans at September 30, 2023 that were both experiencing financial difficulty and modified segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to outstanding loans is also presented below.

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

Payment

 

 

Term

 

 

Interest

 

Class of

 

 

 

Principal

 

 

Delay

 

 

Extension

 

 

Rate

 

Financing

 

 

 

Forgiveness

 

 

Investment

 

 

Modifications

 

 

Reduction

 

Receivable

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural real estate

 

$

—

 

 

$

333

 

 

$

—

 

 

$

—

 

 

0.01

%

1-4 family residential properties

 

 

—

 

 

 

57

 

 

 

819

 

 

 

—

 

 

0.02

%

Commercial real estate

 

 

—

 

 

 

770

 

 

 

137

 

 

 

—

 

 

0.02

%

Loans secured by real estate

 

 

—

 

 

 

1,160

 

 

 

956

 

 

 

—

 

 

0.04

%

Commercial and industrial loans

 

 

—

 

 

 

218

 

 

 

279

 

 

 

—

 

 

0.01

%

Consumer loans

 

 

—

 

 

 

7

 

 

 

41

 

 

 

—

 

 

—

%

Total

 

$

—

 

 

$

1,385

 

 

$

1,276

 

 

$

—

 

 

0.05

%
Performance of loans modified The following table shows the performance of such loans that have been modified in the last twelve months ended September 30, 2023.

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

90 Days or
More
Past Due

 

 

Total Past
Due

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential properties

 

$

28

 

 

$

—

 

 

$

—

 

 

$

28

 

Loans secured by real estate

 

 

28

 

 

 

—

 

 

 

—

 

 

 

28

 

Commercial and industrial loans

 

 

11

 

 

 

—

 

 

 

—

 

 

 

11

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

16

 

 

 

16

 

Total loans

 

$

39

 

 

$

—

 

 

$

16

 

 

$

55

 
Financial Effect of Loan Modifications

The following table shows the financial effect of loan modifications during the current quarter to borrowers experiencing financial difficulty for the three months ended September 30, 2023.

 

 

Weighted Average

 

 

Weighted Average

 

 

 

Interest Rate

 

 

Term Extension

 

 

 

Reduction

 

 

(in months)

 

Commercial and industrial loans

 

 

4.75

%

 

 

5.13

 

Consumer loans

 

 

—

%

 

 

3.00

 
Loans Classified as Troubled Debt Restructurings

The following table shows the recorded investment of loans classified as troubled debt restructurings as of December 31, 2022.

 

 

 

December 31, 2022

 

Performing TDRs

 

$

3,214

 

Nonperforming TDRs

 

 

1,850

 

Total TDRs

 

$

5,064

 
Summary of Purchased Credit Deteriorated (PCD) Loans

The Company has 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 at acquisition date is as follows (in thousands):

 

 

2023

 

 

 

Blackhawk
Acquisition

 

Purchase price of purchase credit deteriorated loans at acquisition

 

$

115,250

 

Allowance for credit losses at acquisition

 

 

(3,791

)

Non-credit discount/(premium) at acquisition

 

 

(5,476

)

Fair value of purchased credit deteriorated loans at acquisition

 

$

105,983

 

 

 

 

2022

 

 

 

Delta
Acquisition

 

Purchase price of purchase credit deteriorated loans at acquisition

 

$

18,796

 

Allowance for credit losses at acquisition

 

 

(863

)

Non-credit discount/(premium) at acquisition

 

 

(523

)

Fair value of purchased credit deteriorated loans at acquisition

 

$

17,410