XML 33 R26.htm IDEA: XBRL DOCUMENT v3.24.3
Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Summary of Loans

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

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Construction and land development

 

$

192,327

 

 

$

207,033

 

Agricultural real estate

 

 

385,324

 

 

 

392,265

 

1-4 family residential properties

 

 

511,404

 

 

 

549,843

 

Multifamily residential properties

 

 

340,118

 

 

 

321,537

 

Commercial real estate

 

 

2,465,488

 

 

 

2,416,294

 

Loans secured by real estate

 

 

3,894,661

 

 

 

3,886,972

 

Agricultural loans

 

 

233,074

 

 

 

196,202

 

Commercial and industrial loans

 

 

1,288,940

 

 

 

1,273,637

 

Consumer loans

 

 

63,867

 

 

 

92,142

 

All other loans

 

 

175,217

 

 

 

184,609

 

Total gross loans

 

 

5,655,759

 

 

 

5,633,562

 

Less: loans held for sale

 

 

8,085

 

 

 

4,980

 

 

 

5,647,674

 

 

 

5,628,582

 

Less:

 

 

 

 

 

 

Net deferred loan fees, premiums and discounts

 

 

41,168

 

 

 

52,997

 

Allowance for credit losses

 

 

68,774

 

 

 

68,675

 

Net loans

 

$

5,537,732

 

 

$

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 September 30, 2024 (in thousands):

 

 

 

September 30, 2024

 

Commercial real estate

 

 

 

Owner occupied

 

$

793,289

 

Non owner occupied

 

 

 

Shopping centers and malls

 

 

248,182

 

Industrial and warehouse

 

 

225,889

 

Hotels and motels

 

 

212,145

 

Skilled nursing facility

 

 

163,030

 

Office

 

 

149,736

 

Retail

 

 

116,988

 

Assisted living facility

 

 

115,860

 

Medical office

 

 

96,539

 

Other property types

 

 

343,830

 

Total commercial real estate

 

$

2,465,488

 

 
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, 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
September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,646

 

 

$

1,372

 

 

$

3,580

 

 

$

32,918

 

 

$

885

 

 

$

24,931

 

 

$

1,980

 

 

$

68,312

 

Provision for credit loss expense

 

 

23

 

 

 

(30

)

 

 

55

 

 

 

349

 

 

 

(50

)

 

 

542

 

 

 

377

 

 

 

1,266

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

42

 

 

 

451

 

 

 

—

 

 

 

1

 

 

 

840

 

 

 

1,334

 

Recoveries collected

 

 

5

 

 

 

—

 

 

 

88

 

 

 

9

 

 

 

25

 

 

 

97

 

 

 

306

 

 

 

530

 

Ending balance

 

$

2,674

 

 

$

1,342

 

 

$

3,681

 

 

$

32,825

 

 

$

860

 

 

$

25,569

 

 

$

1,823

 

 

$

68,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended
September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,918

 

 

$

1,366

 

 

$

4,220

 

 

$

31,758

 

 

$

705

 

 

$

25,450

 

 

$

2,258

 

 

$

68,675

 

Provision for credit loss expense

 

 

(249

)

 

 

(24

)

 

 

(633

)

 

 

1,343

 

 

 

391

 

 

 

557

 

 

 

607

 

 

 

1,992

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

143

 

 

 

451

 

 

 

261

 

 

 

643

 

 

 

1,640

 

 

 

3,138

 

Recoveries collected

 

 

5

 

 

 

—

 

 

 

237

 

 

 

175

 

 

 

25

 

 

 

205

 

 

 

598

 

 

 

1,245

 

Ending balance

 

$

2,674

 

 

$

1,342

 

 

$

3,681

 

 

$

32,825

 

 

$

860

 

 

$

25,569

 

 

$

1,823

 

 

$

68,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 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
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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2024 (in thousands):

 

 

 

Collateral

 

 

Allowance

 

 

 

Real Estate

 

 

Business
Assets

 

 

Total

 

 

for Credit
Losses

 

Agricultural real estate

 

$

533

 

 

$

—

 

 

$

533

 

 

$

—

 

1-4 family residential properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Multifamily residential properties

 

 

970

 

 

 

—

 

 

 

970

 

 

 

—

 

Commercial real estate

 

 

7,767

 

 

 

—

 

 

 

7,767

 

 

 

141

 

Loans secured by real estate

 

 

9,270

 

 

 

—

 

 

 

9,270

 

 

 

141

 

Commercial and industrial loans

 

 

—

 

 

 

351

 

 

 

351

 

 

 

—

 

Total loans

 

$

9,270

 

 

$

351

 

 

$

9,621

 

 

$

141

 
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, 2024 (in thousands):

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

Risk rating

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Loans

 

 

Total

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development loans

 

Pass

 

$

48,615

 

 

$

78,688

 

 

$

19,261

 

 

$

16,051

 

 

$

5,290

 

 

$

22,542

 

 

$

—

 

 

$

190,447

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

390

 

 

 

—

 

 

 

390

 

Substandard

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

14

 

 

 

—

 

 

 

20

 

Total

 

$

48,615

 

 

$

78,688

 

 

$

19,267

 

 

$

16,051

 

 

$

5,290

 

 

$

22,946

 

 

$

—

 

 

$

190,857

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Agricultural real estate loans

 

Pass

 

$

15,266

 

 

$

18,873

 

 

$

157,635

 

 

$

54,503

 

 

$

51,161

 

 

$

80,611

 

 

$

—

 

 

$

378,049

 

Special mention

 

 

1,170

 

 

 

196

 

 

 

—

 

 

 

989

 

 

 

—

 

 

 

2,028

 

 

 

—

 

 

 

4,383

 

Substandard

 

 

—

 

 

 

141

 

 

 

966

 

 

 

—

 

 

 

—

 

 

 

1,081

 

 

 

—

 

 

 

2,188

 

Total

 

$

16,436

 

 

$

19,210

 

 

$

158,601

 

 

$

55,492

 

 

$

51,161

 

 

$

83,720

 

 

$

—

 

 

$

384,620

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

1-4 family residential property loans

 

Pass

 

$

38,471

 

 

$

38,789

 

 

$

76,277

 

 

$

78,970

 

 

$

65,886

 

 

$

117,084

 

 

$

77,910

 

 

$

493,387

 

Special mention

 

 

—

 

 

 

—

 

 

 

207

 

 

 

77

 

 

 

—

 

 

 

562

 

 

 

88

 

 

 

934

 

Substandard

 

 

163

 

 

 

625

 

 

 

904

 

 

 

531

 

 

 

822

 

 

 

7,337

 

 

 

639

 

 

 

11,021

 

Total

 

$

38,634

 

 

$

39,414

 

 

$

77,388

 

 

$

79,578

 

 

$

66,708

 

 

$

124,983

 

 

$

78,637

 

 

$

505,342

 

Current period gross writeoffs

 

$

—

 

 

$

36

 

 

$

10

 

 

$

—

 

 

$

—

 

 

$

97

 

 

$

—

 

 

$

143

 

Commercial real estate loans

 

Pass

 

$

149,862

 

 

$

235,559

 

 

$

711,647

 

 

$

542,617

 

 

$

305,947

 

 

$

806,776

 

 

$

—

 

 

$

2,752,408

 

Special mention

 

 

363

 

 

 

—

 

 

 

4,174

 

 

 

2,051

 

 

 

291

 

 

 

7,367

 

 

 

—

 

 

 

14,246

 

Substandard

 

 

—

 

 

 

49

 

 

 

3,526

 

 

 

476

 

 

 

—

 

 

 

7,582

 

 

 

—

 

 

 

11,633

 

Total

 

$

150,225

 

 

$

235,608

 

 

$

719,347

 

 

$

545,144

 

 

$

306,238

 

 

$

821,725

 

 

$

—

 

 

$

2,778,287

 

Current period gross writeoffs

 

$

—

 

 

$

—

 

 

$

151

 

 

$

—

 

 

$

—

 

 

$

300

 

 

$

—

 

 

$

451

 

Agricultural loans

 

Pass

 

$

127,739

 

 

$

54,805

 

 

$

25,999

 

 

$

15,584

 

 

$

3,110

 

 

$

3,917

 

 

$

—

 

 

$

231,154

 

Special mention

 

 

327

 

 

 

302

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

629

 

Substandard

 

 

53

 

 

 

1,561

 

 

 

17

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,631

 

Total

 

$

128,119

 

 

$

56,668

 

 

$

26,016

 

 

$

15,584

 

 

$

3,110

 

 

$

3,917

 

 

$

—

 

 

$

233,414

 

Current period gross writeoffs

 

$

—

 

 

$

64

 

 

$

100

 

 

$

52

 

 

$

—

 

 

$

45

 

 

$

—

 

 

$

261

 

Commercial and industrial loans

 

Pass

 

$

171,046

 

 

$

262,373

 

 

$

282,671

 

 

$

197,515

 

 

$

124,654

 

 

$

401,109

 

 

$

—

 

 

$

1,439,368

 

Special mention

 

 

189

 

 

 

1,031

 

 

 

1,388

 

 

 

5,927

 

 

 

1,347

 

 

 

7,662

 

 

 

—

 

 

 

17,545

 

Substandard

 

 

65

 

 

 

765

 

 

 

247

 

 

 

185

 

 

 

18

 

 

 

656

 

 

 

—

 

 

 

1,936

 

Total

 

$

171,300

 

 

$

264,169

 

 

$

284,306

 

 

$

203,627

 

 

$

126,019

 

 

$

409,427

 

 

$

—

 

 

$

1,458,849

 

Current period gross writeoffs

 

$

—

 

 

$

47

 

 

$

207

 

 

$

378

 

 

$

10

 

 

$

1

 

 

$

—

 

 

$

643

 

Consumer loans

 

Pass

 

$

4,678

 

 

$

6,171

 

 

$

27,723

 

 

$

13,491

 

 

$

5,671

 

 

$

4,856

 

 

$

—

 

 

$

62,590

 

Special mention

 

 

—

 

 

 

—

 

 

 

24

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24

 

Substandard

 

 

—

 

 

 

30

 

 

 

253

 

 

 

191

 

 

 

103

 

 

 

31

 

 

 

—

 

 

 

608

 

Total

 

$

4,678

 

 

$

6,201

 

 

$

28,000

 

 

$

13,682

 

 

$

5,774

 

 

$

4,887

 

 

$

—

 

 

$

63,222

 

Current period gross writeoffs

 

$

71

 

 

$

43

 

 

$

154

 

 

$

126

 

 

$

48

 

 

$

1,198

 

 

$

—

 

 

$

1,640

 

Total loans

 

Pass

 

$

555,677

 

 

$

695,258

 

 

$

1,301,213

 

 

$

918,731

 

 

$

561,719

 

 

$

1,436,895

 

 

$

77,910

 

 

$

5,547,403

 

Special mention

 

 

2,049

 

 

 

1,529

 

 

 

5,793

 

 

 

9,044

 

 

 

1,638

 

 

 

18,009

 

 

 

88

 

 

 

38,151

 

Substandard

 

 

281

 

 

 

3,171

 

 

 

5,919

 

 

 

1,383

 

 

 

943

 

 

 

16,701

 

 

 

639

 

 

 

29,037

 

Total

 

$

558,007

 

 

$

699,958

 

 

$

1,312,925

 

 

$

929,158

 

 

$

564,300

 

 

$

1,471,605

 

 

$

78,637

 

 

$

5,614,591

 

Current period gross writeoffs

 

$

71

 

 

$

190

 

 

$

622

 

 

$

556

 

 

$

58

 

 

$

1,641

 

 

$

—

 

 

$

3,138

 

 

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 September 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

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

—

 

 

$

6

 

 

$

450

 

 

$

456

 

 

$

190,401

 

 

$

190,857

 

 

$

—

 

Agricultural real estate

 

 

141

 

 

 

—

 

 

 

392

 

 

 

533

 

 

 

384,087

 

 

 

384,620

 

 

 

—

 

1-4 family residential properties

 

 

3,081

 

 

 

1,334

 

 

 

2,188

 

 

 

6,603

 

 

 

498,739

 

 

 

505,342

 

 

 

—

 

Multifamily residential properties

 

 

—

 

 

 

—

 

 

 

551

 

 

 

551

 

 

 

337,616

 

 

 

338,167

 

 

 

—

 

Commercial real estate

 

 

581

 

 

 

170

 

 

 

7,561

 

 

 

8,312

 

 

 

2,431,808

 

 

 

2,440,120

 

 

 

—

 

Loans secured by real estate

 

 

3,803

 

 

 

1,510

 

 

 

11,142

 

 

 

16,455

 

 

 

3,842,651

 

 

 

3,859,106

 

 

 

—

 

Agricultural loans

 

 

—

 

 

 

1,190

 

 

 

—

 

 

 

1,190

 

 

 

232,224

 

 

 

233,414

 

 

 

—

 

Commercial and industrial loans

 

 

2,290

 

 

 

784

 

 

 

804

 

 

 

3,878

 

 

 

1,279,753

 

 

 

1,283,631

 

 

 

—

 

Consumer loans

 

 

273

 

 

 

73

 

 

 

135

 

 

 

481

 

 

 

62,741

 

 

 

63,222

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

175,218

 

 

 

175,218

 

 

 

—

 

Total loans

 

$

6,366

 

 

$

3,557

 

 

$

12,081

 

 

$

22,004

 

 

$

5,592,587

 

 

$

5,614,591

 

 

$

—

 

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

 

 

September 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

 

 

1,647

 

 

 

1,647

 

 

 

1,146

 

 

 

1,146

 

1-4 family residential properties

 

 

3,726

 

 

 

4,840

 

 

 

4,679

 

 

 

4,940

 

Commercial real estate

 

 

6,567

 

 

 

9,419

 

 

 

10,237

 

 

 

10,237

 

Loans secured by real estate

 

 

11,946

 

 

 

15,912

 

 

 

16,062

 

 

 

16,323

 

Commercial and industrial loans

 

 

979

 

 

 

979

 

 

 

1,931

 

 

 

1,931

 

Consumer loans

 

 

257

 

 

 

257

 

 

 

578

 

 

 

578

 

Total loans

 

$

13,182

 

 

$

17,148

 

 

$

18,571

 

 

$

18,832

 
Amortized Cost Basis of Loans Experiencing Difficulty and Modified

The following table shows the amortized cost of loans at September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural real estate

 

$

—

 

 

$

312

 

 

$

—

 

 

$

—

 

 

 

0.01

%

1-4 family residential properties

 

 

—

 

 

 

47

 

 

 

768

 

 

 

—

 

 

 

0.01

%

Commercial real estate

 

 

—

 

 

 

874

 

 

 

212

 

 

 

472

 

 

 

0.03

%

Loans secured by real estate

 

 

—

 

 

 

1,233

 

 

 

980

 

 

 

472

 

 

 

0.05

%

Commercial and industrial loans

 

 

—

 

 

 

151

 

 

 

119

 

 

 

—

 

 

 

—

%

Consumer loans

 

 

—

 

 

 

3

 

 

 

10

 

 

 

—

 

 

 

—

%

Total

 

$

—

 

 

$

1,387

 

 

$

1,109

 

 

$

472

 

 

 

0.05

%

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, 2024 and 2023.

 

 

30-59
Days Past
Due

 

 

60-89
Days Past
Due

 

 

90 Days or
More
Past Due

 

 

Total Past
Due

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Loans secured by real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer loans

 

 

—

 

 

 

96

 

 

 

116

 

 

 

212

 

Total loans

 

$

—

 

 

$

96

 

 

$

116

 

 

$

212

 

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, 2024 and 2023.

 

 

Weighted Average

 

 

Weighted Average

 

 

 

Interest Rate

 

 

Term Extension

 

 

 

Reduction

 

 

(in months)

 

September 30, 2024

 

 

 

 

 

 

Commercial and industrial loans

 

 

—

%

 

 

7.00

 

Consumer loans

 

 

—

%

 

 

—

 

 

 

 

—

%

 

 

7.00

 

September 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