XML 34 R26.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Summary of Loans

A summary of loans at June 30, 2024 and December 31, 2023 follows (in thousands):

 

 

 

June 30, 2024

 

 

December 31, 2023

 

Construction and land development

 

$

197,036

 

 

$

207,033

 

Agricultural real estate

 

 

387,741

 

 

 

392,265

 

1-4 family residential properties

 

 

514,034

 

 

 

549,843

 

Multifamily residential properties

 

 

336,558

 

 

 

321,537

 

Commercial real estate

 

 

2,433,949

 

 

 

2,416,294

 

Loans secured by real estate

 

 

3,869,318

 

 

 

3,886,972

 

Agricultural loans

 

 

213,889

 

 

 

196,202

 

Commercial and industrial loans

 

 

1,274,672

 

 

 

1,273,637

 

Consumer loans

 

 

71,623

 

 

 

92,142

 

All other loans

 

 

175,809

 

 

 

184,609

 

Total gross loans

 

 

5,605,311

 

 

 

5,633,562

 

Less: loans held for sale

 

 

7,764

 

 

 

4,980

 

 

 

5,597,547

 

 

 

5,628,582

 

Less:

 

 

 

 

 

 

Net deferred loan fees, premiums and discounts

 

 

44,694

 

 

 

52,997

 

Allowance for credit losses

 

 

68,312

 

 

 

68,675

 

Net loans

 

$

5,484,541

 

 

$

5,506,910

 
Summary of Gross Commercial Real Esate Loans by Property Type

The following table represents the gross commercial real estate loans by property type as of June 30, 2024 (in thousands):

 

 

 

June 30, 2024

 

Commercial real estate

 

 

 

Owner occupied

 

$

788,928

 

Non owner occupied

 

 

 

Shopping centers and malls

 

 

245,046

 

Hotels and motels

 

 

214,471

 

Industrial and warehouse

 

 

205,461

 

Skilled nursing facility

 

 

154,034

 

Office

 

 

149,206

 

Retail

 

 

117,815

 

Medical office

 

 

101,690

 

Assisted living facility

 

 

96,883

 

Other property types

 

 

360,415

 

Total commercial real estate

 

$

2,433,949

 

 
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 six months ended June 30, 2024 (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
June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,701

 

 

$

1,358

 

 

$

3,778

 

 

$

32,537

 

 

$

778

 

 

$

24,631

 

 

$

2,153

 

 

$

67,936

 

Provision for credit loss expense

 

 

(55

)

 

 

14

 

 

 

(264

)

 

 

376

 

 

 

316

 

 

 

624

 

 

 

72

 

 

 

1,083

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

34

 

 

 

—

 

 

 

209

 

 

 

368

 

 

 

374

 

 

 

985

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

100

 

 

 

5

 

 

 

—

 

 

 

44

 

 

 

129

 

 

 

278

 

Ending balance

 

$

2,646

 

 

$

1,372

 

 

$

3,580

 

 

$

32,918

 

 

$

885

 

 

$

24,931

 

 

$

1,980

 

 

$

68,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended
June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,918

 

 

$

1,366

 

 

$

4,220

 

 

$

31,758

 

 

$

705

 

 

$

25,450

 

 

$

2,258

 

 

$

68,675

 

Provision for credit loss expense

 

 

(272

)

 

 

6

 

 

 

(688

)

 

 

994

 

 

 

441

 

 

 

15

 

 

 

230

 

 

 

726

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

101

 

 

 

—

 

 

 

261

 

 

 

642

 

 

 

800

 

 

 

1,804

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

149

 

 

 

166

 

 

 

—

 

 

 

108

 

 

 

292

 

 

 

715

 

Ending balance

 

$

2,646

 

 

$

1,372

 

 

$

3,580

 

 

$

32,918

 

 

$

885

 

 

$

24,931

 

 

$

1,980

 

 

$

68,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and six months ended June 30, 2023 and for the year ended December 31, 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
June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,426

 

 

$

1,404

 

 

$

3,420

 

 

$

27,327

 

 

$

580

 

 

$

21,142

 

 

$

1,924

 

 

$

58,223

 

Provision for credit loss expense

 

 

(204

)

 

 

(34

)

 

 

(235

)

 

 

385

 

 

 

213

 

 

 

414

 

 

 

(81

)

 

 

458

 

Loans charged off

 

 

14

 

 

 

—

 

 

 

16

 

 

 

25

 

 

 

276

 

 

 

49

 

 

 

200

 

 

 

580

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

78

 

 

 

327

 

 

 

7

 

 

 

37

 

 

 

169

 

 

 

618

 

Ending balance

 

$

2,208

 

 

$

1,370

 

 

$

3,247

 

 

$

28,014

 

 

$

524

 

 

$

21,544

 

 

$

1,812

 

 

$

58,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended
June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,250

 

 

$

1,433

 

 

$

3,742

 

 

$

28,157

 

 

$

585

 

 

$

20,808

 

 

$

2,118

 

 

$

59,093

 

Provision for credit loss expense

 

 

(28

)

 

 

(63

)

 

 

(541

)

 

 

(449

)

 

 

205

 

 

 

505

 

 

 

12

 

 

 

(359

)

Loans charged off

 

 

14

 

 

 

—

 

 

 

56

 

 

 

25

 

 

 

276

 

 

 

62

 

 

 

627

 

 

 

1,060

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

102

 

 

 

331

 

 

 

10

 

 

 

293

 

 

 

309

 

 

 

1,045

 

Ending balance

 

$

2,208

 

 

$

1,370

 

 

$

3,247

 

 

$

28,014

 

 

$

524

 

 

$

21,544

 

 

$

1,812

 

 

$

58,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended
December 31, 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

 

 

374

 

 

 

(67

)

 

 

225

 

 

 

1,755

 

 

 

490

 

 

 

2,322

 

 

 

1,005

 

 

 

6,104

 

Loans charged off

 

 

14

 

 

 

—

 

 

 

87

 

 

 

25

 

 

 

408

 

 

 

529

 

 

 

1,568

 

 

 

2,631

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

216

 

 

 

805

 

 

 

38

 

 

 

576

 

 

 

683

 

 

 

2,318

 

Ending balance

 

$

2,918

 

 

$

1,366

 

 

$

4,220

 

 

$

31,758

 

 

$

705

 

 

$

25,450

 

 

$

2,258

 

 

$

68,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
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 June 30, 2024 (in thousands):

 

 

 

Collateral

 

 

Allowance

 

 

 

Real Estate

 

 

Business
Assets

 

 

Other

 

 

Total

 

 

for Credit
Losses

 

1-4 family residential properties

 

$

1,157

 

 

$

—

 

 

$

—

 

 

$

1,157

 

 

$

—

 

Multifamily residential properties

 

 

1,018

 

 

 

—

 

 

 

—

 

 

 

1,018

 

 

 

—

 

Commercial real estate

 

 

8,327

 

 

 

—

 

 

 

—

 

 

 

8,327

 

 

 

354

 

Loans secured by real estate

 

 

10,502

 

 

 

—

 

 

 

—

 

 

 

10,502

 

 

 

354

 

Commercial and industrial loans

 

 

—

 

 

 

408

 

 

 

—

 

 

 

408

 

 

 

—

 

Total loans

 

$

10,502

 

 

$

408

 

 

$

—

 

 

$

10,910

 

 

$

354

 
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 June 30, 2024 (in thousands):

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

Risk rating

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Loans

 

 

Total

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development loans

 

Pass

 

$

25,088

 

 

$

97,041

 

 

$

28,796

 

 

$

16,349

 

 

$

5,124

 

 

$

22,568

 

 

$

—

 

 

$

194,966

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

401

 

 

 

—

 

 

 

401

 

Substandard

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

22

 

Total

 

$

25,088

 

 

$

97,041

 

 

$

28,802

 

 

$

16,349

 

 

$

5,124

 

 

$

22,985

 

 

$

—

 

 

$

195,389

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Agricultural real estate loans

 

Pass

 

$

13,389

 

 

$

18,478

 

 

$

161,004

 

 

$

55,184

 

 

$

51,641

 

 

$

82,032

 

 

$

—

 

 

$

381,728

 

Special mention

 

 

1,170

 

 

 

199

 

 

 

—

 

 

 

628

 

 

 

—

 

 

 

1,864

 

 

 

—

 

 

 

3,861

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

364

 

 

 

—

 

 

 

1,062

 

 

 

—

 

 

 

1,426

 

Total

 

$

14,559

 

 

$

18,677

 

 

$

161,004

 

 

$

56,176

 

 

$

51,641

 

 

$

84,958

 

 

$

—

 

 

$

387,015

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

1-4 family residential property loans

 

Pass

 

$

25,329

 

 

$

41,018

 

 

$

78,284

 

 

$

82,716

 

 

$

68,116

 

 

$

126,627

 

 

$

72,811

 

 

$

494,901

 

Special mention

 

 

—

 

 

 

—

 

 

 

212

 

 

 

77

 

 

 

—

 

 

 

580

 

 

 

—

 

 

 

869

 

Substandard

 

 

144

 

 

 

124

 

 

 

743

 

 

 

493

 

 

 

837

 

 

 

8,313

 

 

 

1,093

 

 

 

11,747

 

Total

 

$

25,473

 

 

$

41,142

 

 

$

79,239

 

 

$

83,286

 

 

$

68,953

 

 

$

135,520

 

 

$

73,904

 

 

$

507,517

 

Current period gross writeoffs

 

$

—

 

 

$

36

 

 

$

10

 

 

$

—

 

 

$

—

 

 

$

55

 

 

$

—

 

 

$

101

 

Commercial real estate loans

 

Pass

 

$

81,149

 

 

$

204,555

 

 

$

723,001

 

 

$

561,064

 

 

$

314,856

 

 

$

832,804

 

 

$

—

 

 

$

2,717,429

 

Special mention

 

 

365

 

 

 

—

 

 

 

2,657

 

 

 

1,313

 

 

 

295

 

 

 

6,887

 

 

 

—

 

 

 

11,517

 

Substandard

 

 

—

 

 

 

—

 

 

 

3,793

 

 

 

434

 

 

 

—

 

 

 

8,228

 

 

 

—

 

 

 

12,455

 

Total

 

$

81,514

 

 

$

204,555

 

 

$

729,451

 

 

$

562,811

 

 

$

315,151

 

 

$

847,919

 

 

$

—

 

 

$

2,741,401

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Agricultural loans

 

Pass

 

$

80,406

 

 

$

83,720

 

 

$

27,310

 

 

$

16,109

 

 

$

3,202

 

 

$

2,387

 

 

$

—

 

 

$

213,134

 

Special mention

 

 

415

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

371

 

 

 

—

 

 

 

797

 

Substandard

 

 

—

 

 

 

—

 

 

 

50

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

66

 

Total

 

$

80,821

 

 

$

83,731

 

 

$

27,360

 

 

$

16,109

 

 

$

3,202

 

 

$

2,774

 

 

$

—

 

 

$

213,997

 

Current period gross writeoffs

 

$

—

 

 

$

64

 

 

$

100

 

 

$

52

 

 

$

—

 

 

$

45

 

 

$

—

 

 

$

261

 

Commercial and industrial loans

 

Pass

 

$

124,458

 

 

$

268,023

 

 

$

284,063

 

 

$

221,470

 

 

$

142,785

 

 

$

389,153

 

 

$

—

 

 

$

1,429,952

 

Special mention

 

 

221

 

 

 

1,023

 

 

 

1,190

 

 

 

6,365

 

 

 

1,426

 

 

 

3,077

 

 

 

—

 

 

 

13,302

 

Substandard

 

 

—

 

 

 

109

 

 

 

201

 

 

 

210

 

 

 

30

 

 

 

653

 

 

 

—

 

 

 

1,203

 

Total

 

$

124,679

 

 

$

269,155

 

 

$

285,454

 

 

$

228,045

 

 

$

144,241

 

 

$

392,883

 

 

$

—

 

 

$

1,444,457

 

Current period gross writeoffs

 

$

—

 

 

$

47

 

 

$

206

 

 

$

378

 

 

$

10

 

 

$

1

 

 

$

—

 

 

$

642

 

Consumer loans

 

Pass

 

$

3,310

 

 

$

6,963

 

 

$

31,916

 

 

$

15,509

 

 

$

6,876

 

 

$

5,572

 

 

$

—

 

 

$

70,146

 

Special mention

 

 

—

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20

 

Substandard

 

 

—

 

 

 

54

 

 

 

255

 

 

 

196

 

 

 

126

 

 

 

44

 

 

 

—

 

 

 

675

 

Total

 

$

3,310

 

 

$

7,017

 

 

$

32,191

 

 

$

15,705

 

 

$

7,002

 

 

$

5,616

 

 

$

—

 

 

$

70,841

 

Current period gross writeoffs

 

$

—

 

 

$

18

 

 

$

97

 

 

$

113

 

 

$

20

 

 

$

552

 

 

$

—

 

 

$

800

 

Total loans

 

Pass

 

$

353,129

 

 

$

719,798

 

 

$

1,334,374

 

 

$

968,401

 

 

$

592,600

 

 

$

1,461,143

 

 

$

72,811

 

 

$

5,502,256

 

Special mention

 

 

2,171

 

 

 

1,233

 

 

 

4,079

 

 

 

8,383

 

 

 

1,721

 

 

 

13,180

 

 

 

—

 

 

 

30,767

 

Substandard

 

 

144

 

 

 

287

 

 

 

5,048

 

 

 

1,697

 

 

 

993

 

 

 

18,332

 

 

 

1,093

 

 

 

27,594

 

Total

 

$

355,444

 

 

$

721,318

 

 

$

1,343,501

 

 

$

978,481

 

 

$

595,314

 

 

$

1,492,655

 

 

$

73,904

 

 

$

5,560,617

 

Current period gross writeoffs

 

$

—

 

 

$

165

 

 

$

413

 

 

$

543

 

 

$

30

 

 

$

653

 

 

$

—

 

 

$

1,804

 

 

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2023 (in thousands):

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

Risk rating

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Total

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development loans

 

Pass

 

$

68,086

 

 

$

74,065

 

 

$

27,392

 

 

$

5,188

 

 

$

10,795

 

 

$

19,115

 

 

$

—

 

 

$

204,641

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

436

 

 

 

—

 

 

 

436

 

Total

 

$

68,086

 

 

$

74,065

 

 

$

27,392

 

 

$

5,188

 

 

$

10,795

 

 

$

19,551

 

 

$

—

 

 

$

205,077

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

14

 

 

$

—

 

 

$

—

 

 

$

14

 

Agricultural real estate loans

 

Pass

 

$

19,231

 

 

$

164,812

 

 

$

57,815

 

 

$

53,249

 

 

$

19,419

 

 

$

71,189

 

 

$

—

 

 

$

385,715

 

Special mention

 

 

206

 

 

 

—

 

 

 

627

 

 

 

—

 

 

 

1,170

 

 

 

1,868

 

 

 

—

 

 

 

3,871

 

Substandard

 

 

—

 

 

 

—

 

 

 

371

 

 

 

—

 

 

 

—

 

 

 

1,175

 

 

 

—

 

 

 

1,546

 

Total

 

$

19,437

 

 

$

164,812

 

 

$

58,813

 

 

$

53,249

 

 

$

20,589

 

 

$

74,232

 

 

$

—

 

 

$

391,132

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

1-4 family residential property loans

 

Pass

 

$

66,119

 

 

$

96,995

 

 

$

79,085

 

 

$

73,073

 

 

$

26,854

 

 

$

105,257

 

 

$

75,700

 

 

$

523,083

 

Special mention

 

 

—

 

 

 

967

 

 

 

3,184

 

 

 

—

 

 

 

—

 

 

 

3,804

 

 

 

10

 

 

 

7,965

 

Substandard

 

 

152

 

 

 

759

 

 

 

460

 

 

 

396

 

 

 

288

 

 

 

8,865

 

 

 

501

 

 

 

11,421

 

Total

 

$

66,271

 

 

$

98,721

 

 

$

82,729

 

 

$

73,469

 

 

$

27,142

 

 

$

117,926

 

 

$

76,211

 

 

$

542,469

 

Current period gross writeoffs

 

$

10

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

14

 

 

$

63

 

 

$

—

 

 

$

87

 

Commercial real estate loans

 

Pass

 

$

185,628

 

 

$

680,099

 

 

$

548,733

 

 

$

317,075

 

 

$

239,323

 

 

$

701,464

 

 

$

—

 

 

$

2,672,322

 

Special mention

 

 

3,666

 

 

 

2,706

 

 

 

1,317

 

 

 

2,159

 

 

 

1,563

 

 

 

7,778

 

 

 

—

 

 

 

19,189

 

Substandard

 

 

—

 

 

 

3,899

 

 

 

520

 

 

 

20

 

 

 

775

 

 

 

7,108

 

 

 

—

 

 

 

12,322

 

Total

 

$

189,294

 

 

$

686,704

 

 

$

550,570

 

 

$

319,254

 

 

$

241,661

 

 

$

716,350

 

 

$

—

 

 

$

2,703,833

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

25

 

 

$

—

 

 

$

—

 

 

$

25

 

Agricultural loans

 

Pass

 

$

147,993

 

 

$

27,895

 

 

$

10,044

 

 

$

2,549

 

 

$

1,883

 

 

$

5,854

 

 

$

—

 

 

$

196,218

 

Special mention

 

 

6

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

38

 

 

 

—

 

 

 

—

 

 

 

54

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

147,999

 

 

$

27,905

 

 

$

10,044

 

 

$

2,549

 

 

$

1,921

 

 

$

5,854

 

 

$

—

 

 

$

196,272

 

Current period gross writeoffs

 

$

—

 

 

$

276

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

132

 

 

$

—

 

 

$

408

 

Commercial and industrial loans

 

Pass

 

$

290,304

 

 

$

306,794

 

 

$

232,198

 

 

$

154,499

 

 

$

73,906

 

 

$

347,957

 

 

$

—

 

 

$

1,405,658

 

Special mention

 

 

1,047

 

 

 

1,857

 

 

 

9,982

 

 

 

562

 

 

 

597

 

 

 

28,900

 

 

 

—

 

 

 

42,945

 

Substandard

 

 

—

 

 

 

537

 

 

 

791

 

 

 

58

 

 

 

29

 

 

 

750

 

 

 

—

 

 

 

2,165

 

Total

 

$

291,351

 

 

$

309,188

 

 

$

242,971

 

 

$

155,119

 

 

$

74,532

 

 

$

377,607

 

 

$

—

 

 

$

1,450,768

 

Current period gross writeoffs

 

$

—

 

 

$

353

 

 

$

—

 

 

$

49

 

 

$

20

 

 

$

107

 

 

$

—

 

 

$

529

 

Consumer loans

 

Pass

 

$

9,547

 

 

$

40,225

 

 

$

21,264

 

 

$

10,387

 

 

$

4,475

 

 

$

4,035

 

 

$

—

 

 

$

89,933

 

Special mention

 

 

—

 

 

 

26

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26

 

Substandard

 

 

86

 

 

 

405

 

 

 

325

 

 

 

139

 

 

 

59

 

 

 

41

 

 

 

—

 

 

 

1,055

 

Total

 

$

9,633

 

 

$

40,656

 

 

$

21,589

 

 

$

10,526

 

 

$

4,534

 

 

$

4,076

 

 

$

—

 

 

$

91,014

 

Current period gross writeoffs

 

$

22

 

 

$

177

 

 

$

89

 

 

$

10

 

 

$

7

 

 

$

1,075

 

 

$

—

 

 

$

1,380

 

Total loans

 

Pass

 

$

786,908

 

 

$

1,390,885

 

 

$

976,531

 

 

$

616,020

 

 

$

376,655

 

 

$

1,254,871

 

 

$

75,700

 

 

$

5,477,570

 

Special mention

 

 

4,925

 

 

 

5,566

 

 

 

15,110

 

 

 

2,721

 

 

 

3,368

 

 

 

42,350

 

 

 

10

 

 

 

74,050

 

Substandard

 

 

238

 

 

 

5,600

 

 

 

2,467

 

 

 

613

 

 

 

1,151

 

 

 

18,375

 

 

 

501

 

 

 

28,945

 

Total

 

$

792,071

 

 

$

1,402,051

 

 

$

994,108

 

 

$

619,354

 

 

$

381,174

 

 

$

1,315,596

 

 

$

76,211

 

 

$

5,580,565

 

Current period gross writeoffs

 

$

10

 

 

$

761

 

 

$

208

 

 

$

51

 

 

$

93

 

 

$

1,508

 

 

$

—

 

 

$

2,631

 

 
Loan Portfolio Aging Analysis

The following table presents the Company’s loan portfolio aging analysis at June 30, 2024 and December 31, 2023 (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

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

625

 

 

$

—

 

 

$

456

 

 

$

1,081

 

 

$

194,308

 

 

$

195,389

 

 

$

—

 

Agricultural real estate

 

 

100

 

 

 

—

 

 

 

1

 

 

 

101

 

 

 

386,914

 

 

 

387,015

 

 

 

—

 

1-4 family residential properties

 

 

5,357

 

 

 

1,618

 

 

 

1,330

 

 

 

8,305

 

 

 

499,212

 

 

 

507,517

 

 

 

—

 

Multifamily residential properties

 

 

—

 

 

 

44

 

 

 

551

 

 

 

595

 

 

 

333,851

 

 

 

334,446

 

 

 

—

 

Commercial real estate

 

 

686

 

 

 

405

 

 

 

8,432

 

 

 

9,523

 

 

 

2,397,432

 

 

 

2,406,955

 

 

 

—

 

Loans secured by real estate

 

 

6,768

 

 

 

2,067

 

 

 

10,770

 

 

 

19,605

 

 

 

3,811,717

 

 

 

3,831,322

 

 

 

—

 

Agricultural loans

 

 

1,240

 

 

 

—

 

 

 

—

 

 

 

1,240

 

 

 

212,757

 

 

 

213,997

 

 

 

—

 

Commercial and industrial loans

 

 

946

 

 

 

79

 

 

 

1,154

 

 

 

2,179

 

 

 

1,266,467

 

 

 

1,268,646

 

 

 

—

 

Consumer loans

 

 

376

 

 

 

41

 

 

 

137

 

 

 

554

 

 

 

70,287

 

 

 

70,841

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

175,811

 

 

 

175,811

 

 

 

—

 

Total loans

 

$

9,330

 

 

$

2,187

 

 

$

12,061

 

 

$

23,578

 

 

$

5,537,039

 

 

$

5,560,617

 

 

$

—

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

—

 

 

$

585

 

 

$

450

 

 

$

1,035

 

 

$

204,042

 

 

$

205,077

 

 

$

—

 

Agricultural real estate

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

391,131

 

 

 

391,132

 

 

 

—

 

1-4 family residential properties

 

 

3,054

 

 

 

530

 

 

 

1,018

 

 

 

4,602

 

 

 

537,867

 

 

 

542,469

 

 

 

—

 

Multifamily residential properties

 

 

150

 

 

 

—

 

 

 

551

 

 

 

701

 

 

 

318,428

 

 

 

319,129

 

 

 

—

 

Commercial real estate

 

 

819

 

 

 

74

 

 

 

3,765

 

 

 

4,658

 

 

 

2,380,046

 

 

 

2,384,704

 

 

 

—

 

Loans secured by real estate

 

 

4,023

 

 

 

1,189

 

 

 

5,785

 

 

 

10,997

 

 

 

3,831,514

 

 

 

3,842,511

 

 

 

—

 

Agricultural loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

196,272

 

 

 

196,272

 

 

 

—

 

Commercial and industrial loans

 

 

673

 

 

 

73

 

 

 

1,531

 

 

 

2,277

 

 

 

1,263,882

 

 

 

1,266,159

 

 

 

—

 

Consumer loans

 

 

983

 

 

 

162

 

 

 

330

 

 

 

1,475

 

 

 

89,539

 

 

 

91,014

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

184,609

 

 

 

184,609

 

 

 

—

 

Total loans

 

$

5,679

 

 

$

1,424

 

 

$

7,646

 

 

$

14,749

 

 

$

5,565,816

 

 

$

5,580,565

 

 

$

—

 
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 June 30, 2024 and December 31, 2023 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Nonaccrual
with no
Allowance for

 

 

Total

 

 

Nonaccrual
with no
Allowance for

 

 

Total

 

 

 

Credit Loss

 

 

Nonaccrual

 

 

Credit Loss

 

 

Nonaccrual

 

Construction and land development

 

$

6

 

 

$

6

 

 

$

—

 

 

$

—

 

Agricultural real estate

 

 

1,125

 

 

 

1,125

 

 

 

1,146

 

 

 

1,146

 

1-4 family residential properties

 

 

4,272

 

 

 

4,896

 

 

 

4,679

 

 

 

4,940

 

Commercial real estate

 

 

9,096

 

 

 

10,421

 

 

 

10,237

 

 

 

10,237

 

Loans secured by real estate

 

 

14,499

 

 

 

16,448

 

 

 

16,062

 

 

 

16,323

 

Commercial and industrial loans

 

 

1,015

 

 

 

1,015

 

 

 

1,931

 

 

 

1,931

 

Consumer loans

 

 

391

 

 

 

391

 

 

 

578

 

 

 

578

 

Total loans

 

$

15,905

 

 

$

17,854

 

 

$

18,571

 

 

$

18,832

 
Amortized Cost Basis of Loans Experiencing Difficulty and Modified

The following table shows the amortized cost of loans at June 30, 2024 and 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural real estate

 

$

—

 

 

$

317

 

 

$

—

 

 

$

—

 

 

 

0.01

%

1-4 family residential properties

 

 

—

 

 

 

49

 

 

 

778

 

 

 

—

 

 

 

0.01

%

Commercial real estate

 

 

—

 

 

 

694

 

 

 

216

 

 

 

502

 

 

 

0.03

%

Loans secured by real estate

 

 

—

 

 

 

1,060

 

 

 

994

 

 

 

502

 

 

 

0.05

%

Commercial and industrial loans

 

 

—

 

 

 

168

 

 

 

126

 

 

 

—

 

 

 

0.01

%

Consumer loans

 

 

—

 

 

 

5

 

 

 

12

 

 

 

—

 

 

 

—

%

Total

 

$

—

 

 

$

1,233

 

 

$

1,132

 

 

$

502

 

 

 

0.05

%

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural real estate

 

$

—

 

 

$

337

 

 

$

—

 

 

$

—

 

 

 

0.01

%

1-4 family residential properties

 

 

—

 

 

 

60

 

 

 

868

 

 

 

—

 

 

 

0.02

%

Commercial real estate

 

 

—

 

 

 

797

 

 

 

117

 

 

 

—

 

 

 

0.02

%

Loans secured by real estate

 

 

—

 

 

 

1,194

 

 

 

985

 

 

 

—

 

 

 

0.05

%

Commercial and industrial loans

 

 

—

 

 

 

233

 

 

 

286

 

 

 

—

 

 

 

0.01

%

Consumer loans

 

 

—

 

 

 

8

 

 

 

43

 

 

 

—

 

 

 

—

%

Total

 

$

—

 

 

$

1,435

 

 

$

1,314

 

 

$

—

 

 

 

0.06

%

 
Performance of loans modified The following table shows the performance of such loans that have been modified in the last twelve months ended June 30, 2024 and 2023.

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

90 Days or
More
Past Due

 

 

Total Past
Due

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential properties

 

$

25

 

 

$

—

 

 

$

—

 

 

$

25

 

Commercial real estate

 

 

116

 

 

 

—

 

 

 

—

 

 

 

116

 

Loans secured by real estate

 

 

141

 

 

 

—

 

 

 

—

 

 

 

141

 

Commercial and industrial loans

 

 

131

 

 

 

—

 

 

 

—

 

 

 

131

 

Consumer loans

 

 

—

 

 

 

12

 

 

 

—

 

 

 

12

 

Total loans

 

$

272

 

 

$

12

 

 

$

—

 

 

$

284

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Consumer loans

 

$

—

 

 

$

17

 

 

$

—

 

 

$

17

 

Total loans

 

$

—

 

 

$

17

 

 

$

—

 

 

$

17

 
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 and six months ended June 30, 2024 and 2023.

 

 

Weighted Average

 

 

Weighted Average

 

 

 

Interest Rate

 

 

Term Extension

 

 

 

Reduction

 

 

(in months)

 

June 30, 2024

 

 

 

 

 

 

Commercial and industrial loans

 

 

—

%

 

 

7.00

 

Consumer loans

 

 

—

%

 

 

—

 

 

 

 

—

%

 

 

7.00

 

June 30, 2023

 

 

 

 

 

 

Commercial and industrial loans

 

 

4.75

%

 

 

5.13

 

Consumer loans

 

 

—

%

 

 

3.00

 

 

 

 

4.75

%

 

 

4.93

 
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