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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables)
 12 Months Ended
Dec. 31, 2023
Loans and Leases Receivable Disclosure [Abstract]  
Summary of Loans
Major categories of loans are summarized as follows:
(dollars in thousands)December 31, 2023December 31, 2022
Commercial and industrial$427,800 $266,757 
Commercial real estate - owner occupied295,842 218,503 
Commercial real estate - non-owner occupied880,681 713,202 
Construction and land development363,983 360,824 
Multi-family417,923 287,865 
One-to-four family residential491,508 338,253 
Agricultural and farmland287,294 237,746 
Municipal, consumer, and other239,386 197,103 
Loans, before allowance for credit losses3,404,417 2,620,253 
Allowance for credit losses(40,048)(25,333)
Loans, net of allowance for credit losses$3,364,369 $2,594,920 
Schedule of activity in allowance for loan losses
The following tables detail activity in the allowance for credit losses:
(dollars in thousands)Commercial
and
Industrial		Commercial
Real Estate
Owner
Occupied		Commercial
Real Estate
Non-owner
Occupied		Construction
and Land
Development		Multi-FamilyOne-to-four
Family
Residential		Agricultural
and
Farmland		Municipal,
Consumer,
and
Other		Total
Balance, December 31, 2020$3,929 $3,141 $11,251 $4,232 $1,957 $1,801 $793 $4,734 $31,838 
Provision for loan losses(1,474)(1,280)(3,130)340 (694)(472)52 (1,419)(8,077)
Charge-offs(668)(30)— — — (267)— (449)(1,414)
Recoveries653 9 24 342 — 249 — 312 1,589 
Balance, December 31, 2021$2,440 $1,840 $8,145 $4,914 $1,263 $1,311 $845 $3,178 $23,936 
Provision for loan losses88 (1,653)(1,707)(692)209 146 (49)2,952 (706)
Charge-offs(23)(25)— — — (67)— (569)(684)
Recoveries774 1,031 283 1 — 369 — 329 2,787 
Balance, December 31, 2022$3,279 $1,193 $6,721 $4,223 $1,472 $1,759 $796 $5,890 $25,333 
Adoption of ASC 326(822)587 501 1,969 85 797 1,567 2,299 6,983 
PCD allowance established in acquisition69 127 239 240 68 492 5 7 1,247 
Provision for loan losses2,823 352 187 (487)1,931 2,004 (1,399)1,254 6,665 
Charge-offs(428)(5)(202)— — (34)— (690)(1,359)
Recoveries59 18 268 53 281 186 6 308 1,179 
Balance, December 31, 2023$4,980 $2,272 $7,714 $5,998 $3,837 $5,204 $975 $9,068 $40,048 
The following tables present loans and the related allowance for credit losses by category:
December 31, 2023
(dollars in thousands)Commercial
and
Industrial		Commercial
Real Estate
Owner
Occupied		Commercial
Real Estate
Non-owner
Occupied		Construction
and Land
Development		Multi-FamilyOne-to-four
Family
Residential		Agricultural
and
Farmland		Municipal,
Consumer,
and
Other		Total
Loan balances:
Collectively evaluated for impairment$427,528 $295,672 $865,394 $363,767 $417,608 $486,049 $287,150 $224,345 $3,367,513 
Individually evaluated for impairment272 170 15,287 216 315 5,459 144 15,041 36,904 
Total$427,800 $295,842 $880,681 $363,983 $417,923 $491,508 $287,294 $239,386 $3,404,417 
Allowance for credit losses:
Collectively evaluated for impairment$4,960 $2,272 $6,693 $5,998 $3,837 $4,957 $975 $6,137 $35,829 
Individually evaluated for impairment20 — 1,021 — — 247 — 2,931 4,219 
Total$4,980 $2,272 $7,714 $5,998 $3,837 $5,204 $975 $9,068 $40,048 
December 31, 2022
(dollars in thousands)Commercial
and
Industrial		Commercial
Real Estate
Owner
Occupied		Commercial
Real Estate
Non-owner
Occupied		Construction
and Land
Development		Multi-FamilyOne-to-four
Family
Residential		Agricultural
and
Farmland		Municipal,
Consumer,
and
Other		Total
Loan balances:
Collectively evaluated for impairment$261,833 $203,558 $671,663 $359,892 $287,298 $325,621 $233,118 $184,579 $2,527,562 
Individually evaluated for impairment4,818 11,366 30,509 82 — 8,399 4,033 12,508 71,715 
Acquired with deteriorated credit quality106 3,579 11,030 850 567 4,233 595 16 20,976 
Total$266,757 $218,503 $713,202 $360,824 $287,865 $338,253 $237,746 $197,103 $2,620,253 
Allowance for loan losses:
Collectively evaluated for impairment$3,121 $1,008 $4,332 $4,221 $1,470 $1,709 $796 $2,327 $18,984 
Individually evaluated for impairment158 168 2,388 — — 44 — 3,562 6,320 
Acquired with deteriorated credit quality— 17 1 2 2 6 — 1 29 
Total$3,279 $1,193 $6,721 $4,223 $1,472 $1,759 $796 $5,890 $25,333 
Schedule of gross charge-offs, further sorted by origination year
Gross charge-offs, further sorted by origination year, were as follows during the year ended December 31, 2023:
Gross Charge-Offs for the Year Ended December 31, 2023
Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
(dollars in thousands)20232022202120202019Prior
Commercial and industrial$— $— $— $— $— $— $428 $— $428 
Commercial real estate - owner occupied— 5 — — — — — — 5 
Commercial real estate - non-owner occupied— — — — 31 — 171 — 202 
Construction and land development— — — — — — — — — 
Multi-family— — — — — — — — — 
One-to-four family residential— — — — 1 33 — — 34 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other309 100 13 17 10 32 209 — 690 
Total$309 $105 $13 $17 $42 $65 $808 $— $1,359 
Schedule of amortized cost of collateral dependent loans
The following table presents collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:
December 31, 2023
Amortized CostAllowance
for Credit
Losses
Primary Collateral Type
(dollars in thousands)Real EstateVehiclesOtherTotal
Commercial and industrial$— $37 $235 $272 $20 
Commercial real estate - owner occupied170 — — 170 — 
Commercial real estate - non-owner occupied15,287 — — 15,287 1,021 
Construction and land development216 — — 216 — 
Multi-family315 — — 315 — 
One-to-four family residential5,459 — — 5,459 247 
Agricultural and farmland144 — — 144 — 
Municipal, consumer, and other14,978 39 24 15,041 2,931 
Total$36,569 $76 $259 $36,904 $4,219 
Schedule of loans individually evaluated for impairment by category PREADOPTION
The following table presents loans individually evaluated for impairment by category of loans:
December 31, 2022
(dollars in thousands)Unpaid
Principal
Balance		Recorded
Investment		Related
Allowance
With an allowance recorded:
Commercial and industrial$268 $254 $158 
Commercial real estate - owner occupied635 610 168 
Commercial real estate - non-owner occupied14,269 14,261 2,388 
Construction and land development— — — 
Multi-family— — — 
One-to-four family residential569 524 44 
Agricultural and farmland— — — 
Municipal, consumer, and other8,152 8,131 3,562 
Total$23,893 $23,780 $6,320 
With no related allowance:
Commercial and industrial$4,564 $4,564 $— 
Commercial real estate - owner occupied10,912 10,756 — 
Commercial real estate - non-owner occupied16,327 16,248 — 
Construction and land development92 82 — 
Multi-family— — — 
One-to-four family residential9,181 7,875 — 
Agricultural and farmland4,440 4,033 — 
Municipal, consumer, and other4,410 4,377 — 
Total$49,926 $47,935 $— 
Total loans individually evaluated for impairment:
Commercial and industrial$4,832 $4,818 $158 
Commercial real estate - owner occupied11,547 11,366 168 
Commercial real estate - non-owner occupied30,596 30,509 2,388 
Construction and land development92 82 — 
Multi-family— — — 
One-to-four family residential9,750 8,399 44 
Agricultural and farmland4,440 4,033 — 
Municipal, consumer, and other12,562 12,508 3,562 
Total$73,819 $71,715 $6,320 
The following tables present the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans:
Year Ended December 31,
20222021
(dollars in thousands)Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
With an allowance recorded:
Commercial and industrial$204 $18 $1,593 $89 
Commercial real estate - owner occupied970 63 3,052 177 
Commercial real estate - non-owner occupied10,943 740 16,494 791 
Construction and land development— — 554 27 
Multi-family— — — — 
One-to-four family residential384 16 1,988 77 
Agricultural and farmland— — 83 4 
Municipal, consumer, and other6,259 236 8,681 158 
Total$18,760 $1,073 $32,445 $1,323 
With no related allowance:
Commercial and industrial$9,568 $453 $7,125 $330 
Commercial real estate - owner occupied8,619 525 7,771 344 
Commercial real estate - non-owner occupied12,636 1,278 10,339 432 
Construction and land development1,505 106 2,107 28 
Multi-family— — 434 10 
One-to-four family residential6,238 352 6,248 192 
Agricultural and farmland228 13 290 17 
Municipal, consumer, and other3,361 148 4,666 86 
Total$42,155 $2,875 $38,980 $1,439 
Total loans individually evaluated for impairment:
Commercial and industrial$9,772 $471 $8,718 $419 
Commercial real estate - owner occupied9,589 588 10,823 521 
Commercial real estate - non-owner occupied23,579 2,018 26,833 1,223 
Construction and land development1,505 106 2,661 55 
Multi-family— — 434 10 
One-to-four family residential6,622 368 8,236 269 
Agricultural and farmland228 13 373 21 
Municipal, consumer, and other9,620 384 13,347 244 
Total$60,915 $3,948 $71,425 $2,762 
Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality
Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows:
Year Ended December 31,
(dollars in thousands)20222021
Beginning balance$413$1,397
Reclassification from non-accretable difference548508
Disposals— (1,089)
Accretion income(231)(403)
Ending balance$730$413
Schedule of recorded investment on past due basis
The following tables present loans by category based on current payment and accrual status:
December 31, 2023
Accruing Interest
(dollars in thousands)Current30 - 89 Days
Past Due		90+ Days
Past Due		NonaccrualTotal
Loans
Commercial and industrial$427,300 $228 $— $272 $427,800 
Commercial real estate - owner occupied295,672 — — 170 295,842 
Commercial real estate - non-owner occupied878,591 255 — 1,835 880,681 
Construction and land development363,735 32 — 216 363,983 
Multi-family417,597 11 — 315 417,923 
One-to-four family residential484,969 1,735 — 4,804 491,508 
Agricultural and farmland286,820 330 — 144 287,294 
Municipal, consumer, and other239,033 252 37 64 239,386 
Total$3,393,717 $2,843 $37 $7,820 $3,404,417 
December 31, 2022
Accruing Interest
(dollars in thousands)Current30 - 89 Days
Past Due		90+ Days
Past Due		NonaccrualTotal
Loans
Commercial and industrial$266,521 $17 $— $219 $266,757 
Commercial real estate - owner occupied218,242 187 — 74 218,503 
Commercial real estate - non-owner occupied713,031 — — 171 713,202 
Construction and land development360,763 61 — — 360,824 
Multi-family287,854 11 — — 287,865 
One-to-four family residential335,576 894 145 1,638 338,253 
Agricultural and farmland237,727 19 — — 237,746 
Municipal, consumer, and other196,892 157 1 53 197,103 
Total$2,616,606 $1,346 $146 $2,155 $2,620,253 
Schedule of non-accrual loans
The following table presents nonaccrual loans with and without a related allowance for credit losses:
December 31, 2023
(dollars in thousands)Nonaccrual
With
Allowance for
Credit Losses		Nonaccrual
With No
Allowance for
Credit Losses		Total
Nonaccrual
Commercial and industrial$120 $152 $272 
Commercial real estate - owner occupied— 170 170 
Commercial real estate - non-owner occupied188 1,647 1,835 
Construction and land development216 — 216 
Multi-family— 315 315 
One-to-four family residential14 4,790 4,804 
Agricultural and farmland— 144 144 
Municipal, consumer, and other— 64 64 
Total$538 $7,282 $7,820 
Schedule of loans by category risk ratings
The following tables present loans by category based on their assigned risk ratings determined by management:
December 31, 2023
(dollars in thousands)PassPass-WatchSubstandardDoubtfulTotal
Commercial and industrial$419,494 $7,128 $1,178 $— $427,800 
Commercial real estate - owner occupied275,649 14,072 6,121 — 295,842 
Commercial real estate - non-owner occupied822,012 33,283 25,386 — 880,681 
Construction and land development351,087 12,604 292 — 363,983 
Multi-family397,951 19,656 316 — 417,923 
One-to-four family residential472,355 6,671 12,482 — 491,508 
Agricultural and farmland280,867 3,071 3,356 — 287,294 
Municipal, consumer, and other222,474 1,721 15,191 — 239,386 
Total$3,241,889 $98,206 $64,322 $— $3,404,417 
December 31, 2022
(dollars in thousands)PassPass-WatchSubstandardDoubtfulTotal
Commercial and industrial$255,309 $6,630 $4,818 $— $266,757 
Commercial real estate - owner occupied198,546 10,105 9,852 — 218,503 
Commercial real estate - non-owner occupied652,691 27,282 33,229 — 713,202 
Construction and land development358,215 2,527 82 — 360,824 
Multi-family283,682 4,183 — — 287,865 
One-to-four family residential323,632 5,907 8,714 — 338,253 
Agricultural and farmland223,114 10,004 4,628 — 237,746 
Municipal, consumer, and other184,299 296 12,508 — 197,103 
Total$2,479,488 $66,934 $73,831 $— $2,620,253 
Schedule of risk ratings of loans, further sorted by origination year
Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2023:
(dollars in thousands)Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
20232022202120202019Prior
Commercial and industrial
Pass$90,931 $58,364 $19,283 $26,816 $5,269 $29,550 $187,579 $1,702 $419,494 
Pass-Watch2,025 1,340 892 144 753 471 956 547 7,128 
Substandard111 73 327 60 — — 323 284 1,178 
Total$93,067 $59,777 $20,502 $27,020 $6,022 $30,021 $188,858 $2,533 $427,800 
Commercial real estate - owner occupied
Pass$27,516 $64,229 $55,376 $53,634 $32,469 $28,876 $13,549 $— $275,649 
Pass-Watch4,061 943 5,210 1,474 1,573 811 — — 14,072 
Substandard2,734 86 1,550 64 164 1,523 — — 6,121 
Total$34,311 $65,258 $62,136 $55,172 $34,206 $31,210 $13,549 $— $295,842 
Commercial real estate - non-owner occupied
Pass$121,536 $240,323 $237,953 $88,894 $82,094 $39,228 $10,274 $1,710 $822,012 
Pass-Watch810 6,893 7,013 353 4,230 154 13,585 245 33,283 
Substandard13,376 124 286 — 2,410 9,190 — — 25,386 
Total$135,722 $247,340 $245,252 $89,247 $88,734 $48,572 $23,859 $1,955 $880,681 
Construction and land development
Pass$153,499 $119,005 $56,954 $5,596 $2,662 $796 $12,050 $525 $351,087 
Pass-Watch153 10,750 — — — — 163 1,538 12,604 
Substandard— 216 — — — 76 — — 292 
Total$153,652 $129,971 $56,954 $5,596 $2,662 $872 $12,213 $2,063 $363,983 
Multi-family
Pass$83,898 $81,507 $115,402 $53,126 $34,053 $23,570 $5,904 $491 $397,951 
Pass-Watch3,111 7,197 — 8,821 51 468 — 8 19,656 
Substandard— — 316 — — — — — 316 
Total$87,009 $88,704 $115,718 $61,947 $34,104 $24,038 $5,904 $499 $417,923 
One-to-four family residential
Pass$105,337 $91,636 $82,289 $64,094 $21,986 $44,241 $57,248 $5,524 $472,355 
Pass-Watch2,382 286 940 486 212 1,804 203 358 6,671 
Substandard1,507 1,527 623 646 1,037 4,166 64 2,912 12,482 
Total$109,226 $93,449 $83,852 $65,226 $23,235 $50,211 $57,515 $8,794 $491,508 
Agricultural and farmland
Pass$52,766 $37,600 $36,604 $33,960 $8,910 $7,756 $100,486 $2,785 $280,867 
Pass-Watch953 361 425 30 71 719 172 340 3,071 
Substandard— — 13 3,199 — 144 — — 3,356 
Total$53,719 $37,961 $37,042 $37,189 $8,981 $8,619 $100,658 $3,125 $287,294 
Municipal, Consumer, and other
Pass$43,575 $57,404 $27,904 $14,342 $1,016 $42,499 $35,734 $— $222,474 
Pass-Watch9 6 13 — — 1,693 — — 1,721 
Substandard51 103 2 6 8 15,012 8 1 15,191 
Total$43,635 $57,513 $27,919 $14,348 $1,024 $59,204 $35,742 $1 $239,386 
Total by Risk Rating
Pass$679,058 $750,068 $631,765 $340,462 $188,459 $216,516 $422,824 $12,737 $3,241,889 
Pass-Watch13,504 27,776 14,493 11,308 6,890 6,120 15,079 3,036 98,206 
Substandard17,779 2,129 3,117 3,975 3,619 30,111 395 3,197 64,322 
Total$710,341 $779,973 $649,375 $355,745 $198,968 $252,747 $438,298 $18,970 $3,404,417