LOANS AND THE ALLOWANCE FOR LOAN LOSSES

Schedule of activity in allowance for loan losses


					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
Three Months Ended June 30, 2021	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Allowance for loan losses:	(dollars in thousands)
Balance, March 31, 2021	$	2,420	$	865	$	2,715	$	11,330	$	2,090	$	4,006	$	1,573	$	3,760	$	28,759
Provision for loan losses		578		(84)		(769)		(1,511)		(81)		(261)		(45)		11		(2,162)
Charge-offs		(295)		—		—		—		—		—		(41)		(66)		(402)
Recoveries		14		—		—		6		—		179		33		80		312
Balance, June 30, 2021	$	2,717	$	781	$	1,946	$	9,825	$	2,009	$	3,924	$	1,520	$	3,785	$	26,507

					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
Three Months Ended June 30, 2020	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Allowance for loan losses:	(dollars in thousands)
Balance, March 31, 2020	$	4,224	$	2,993	$	2,122	$	4,432	$	1,474	$	3,223	$	3,284	$	4,335	$	26,087
Provision for loan losses		125		(103)		1,135		2,275		107		135		(317)		216		3,573
Charge-offs		—		—		—		—		—		—		(8)		(152)		(160)
Recoveries		7		—		—		60		—		8		51		97		223
Balance, June 30, 2020	$	4,356	$	2,890	$	3,257	$	6,767	$	1,581	$	3,366	$	3,010	$	4,496	$	29,723


					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
Six Months Ended June 30, 2021	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Allowance for loan losses:	(dollars in thousands)
Balance, December 31, 2020	$	3,929	$	793	$	3,141	$	11,251	$	1,957	$	4,232	$	1,801	$	4,734	$	31,838
Provision for loan losses		(1,224)		(12)		(1,195)		(1,439)		52		(577)		(243)		(929)		(5,567)
Charge-offs		(295)		—		—		—		—		—		(113)		(189)		(597)
Recoveries		307		—		—		13		—		269		75		169		833
Balance, June 30, 2021	$	2,717	$	781	$	1,946	$	9,825	$	2,009	$	3,924	$	1,520	$	3,785	$	26,507

					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate								Consumer
	and		and		Owner		Non-owner				Construction		Residential		and
Six Months Ended June 30, 2020	Industrial		Farmland		Occupied		Occupied		Multi-Family		and Land		Real Estate		Other		Total

Allowance for loan losses:	(dollars in thousands)
Balance, December 31, 2019	$	4,441	$	2,766	$	1,779	$	3,663	$	1,024	$	2,977	$	2,540	$	3,109	$	22,299
Provision for loan losses		663		151		1,038		3,095		557		372		460		1,592		7,928
Charge-offs		(809)		(27)		—		(56)		—		(1)		(112)		(376)		(1,381)
Recoveries		61		—		440		65		—		18		122		171		877
Balance, June 30, 2020	$	4,356	$	2,890	$	3,257	$	6,767	$	1,581	$	3,366	$	3,010	$	4,496	$	29,723


					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
June 30, 2021	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Loan balances:	(dollars in thousands)
Collectively evaluated for impairment	$	311,980	$	230,183	$	196,917	$	497,346	$	209,968	$	200,316	$	286,978	$	121,875	$	2,055,563
Individually evaluated for impairment		8,775		547		9,699		20,838		874		1,968		8,610		13,336		64,647
Acquired with deteriorated credit quality		597		797		5,981		13,619		1,237		2,335		7,300		43		31,909
Total	$	321,352	$	231,527	$	212,597	$	531,803	$	212,079	$	204,619	$	302,888	$	135,254	$	2,152,119

Allowance for loan losses:
Collectively evaluated for impairment	$	1,939	$	764	$	1,513	$	6,266	$	1,998	$	3,909	$	1,097	$	1,359	$	18,845
Individually evaluated for impairment		778		17		394		3,406		—		—		420		2,425		7,440
Acquired with deteriorated credit quality		—		—		39		153		11		15		3		1		222
Total	$	2,717	$	781	$	1,946	$	9,825	$	2,009	$	3,924	$	1,520	$	3,785	$	26,507

					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
December 31, 2020	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Loan balances:	(dollars in thousands)
Collectively evaluated for impairment	$	387,072	$	217,077	$	201,417	$	480,165	$	234,252	$	219,822	$	287,845	$	105,796	$	2,133,446
Individually evaluated for impairment		5,312		4,793		13,132		25,993		876		3,809		10,343		13,546		77,804
Acquired with deteriorated credit quality		928		853		7,811		14,237		1,263		2,021		8,587		56		35,756
Total	$	393,312	$	222,723	$	222,360	$	520,395	$	236,391	$	225,652	$	306,775	$	119,398	$	2,247,006

Allowance for loan losses:
Collectively evaluated for impairment	$	2,736	$	771	$	2,306	$	6,736	$	1,950	$	3,984	$	1,237	$	1,432	$	21,152
Individually evaluated for impairment		1,193		22		429		4,255		—		222		560		3,301		9,982
Acquired with deteriorated credit quality		—		—		406		260		7		26		4		1		704
Total	$	3,929	$	793	$	3,141	$	11,251	$	1,957	$	4,232	$	1,801	$	4,734	$	31,838

Schedule of recorded investment on past due basis


	Accruing Interest
			30 - 89 Days		90+ Days				Total
June 30, 2021	Current		Past Due		Past Due		Nonaccrual		Loans

	(dollars in thousands)
Commercial and industrial	$	320,679	$	167	$	—	$	506	$	321,352
Agricultural and farmland		230,945		—		582		—		231,527
Commercial real estate - owner occupied		212,051		—		—		546		212,597
Commercial real estate - non-owner occupied		531,618		—		—		185		531,803
Multi-family		211,205		—		—		874		212,079
Construction and land development		202,717		—		—		1,902		204,619
One-to-four family residential		299,832		310		28		2,718		302,888
Municipal, consumer, and other		134,999		163		—		92		135,254
Total	$	2,144,046	$	640	$	610	$	6,823	$	2,152,119


	Accruing Interest
			30 - 89 Days		90+ Days				Total
December 31, 2020	Current		Past Due		Past Due		Nonaccrual		Loans

	(dollars in thousands)
Commercial and industrial	$	392,490	$	—	$	—	$	822	$	393,312
Agricultural and farmland		222,723		—		—		—		222,723
Commercial real estate - owner occupied		221,308		112		—		940		222,360
Commercial real estate - non-owner occupied		516,387		—		—		4,008		520,395
Multi-family		236,391		—		—		—		236,391
Construction and land development		225,508		—		—		144		225,652
One-to-four family residential		301,282		984		595		3,914		306,775
Municipal, consumer, and other		119,055		211		21		111		119,398
Total	$	2,235,144	$	1,307	$	616	$	9,939	$	2,247,006

Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

	(dollars in thousands)
Beginning balance	$	1,338	$	1,510	$	1,397	$	1,662
Reclassification from non-accretable difference		79		38		153		46
Accretion income		(67)		(170)		(200)		(330)
Ending balance	$	1,350	$	1,378	$	1,350	$	1,378