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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Financing Receivables LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES
Major categories of loans are summarized as follows:
(dollars in thousands)June 30, 2024December 31, 2023
Commercial and industrial$400,276 $427,800 
Commercial real estate - owner occupied289,992 295,842 
Commercial real estate - non-owner occupied889,193 880,681 
Construction and land development365,371 363,983 
Multi-family429,951 417,923 
One-to-four family residential484,335 491,508 
Agricultural and farmland285,822 287,294 
Municipal, consumer, and other240,543 239,386 
Loans, before allowance for credit losses3,385,483 3,404,417 
Allowance for credit losses(40,806)(40,048)
Loans, net of allowance for credit losses$3,344,677 $3,364,369 
Allowance for Credit Losses
Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.
At June 30, 2024, the economic forecast used by management anticipates an economic slowdown, but not a recession, over the next 4 quarters considered in the forecast period, with the unemployment rate increasing slightly and GDP growth slowing and then increasing modestly. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses.
The following tables detail activity in the allowance for credit losses:
Three Months Ended June 30, 2024
(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
Beginning balance$5,230 $2,157 $10,058 $5,545 $3,845 $4,846 $1,014 $8,120 $40,815 
Provision for credit losses— 32 (257)609 55 (75)44 269 677 
Charge-offs(493)— — — (188)(54)— (135)(870)
Recoveries24 2 15 1 — 68 1 73 184 
Ending balance$4,761 $2,191 $9,816 $6,155 $3,712 $4,785 $1,059 $8,327 $40,806 
Three Months Ended June 30, 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
Beginning balance$2,932 $2,535 $7,840 $7,574 $2,151 $4,165 $2,674 $8,905 $38,776 
Provision for credit losses791 (175)(466)(1,745)452 (121)(68)252 (1,080)
Charge-offs— — — — — (4)— (175)(179)
Recoveries12 2 164 5 — 37 1 76 297 
Ending balance$3,735 $2,362 $7,538 $5,834 $2,603 $4,077 $2,607 $9,058 $37,814 
Six Months Ended June 30, 2024
(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
Beginning balance$4,980 $2,272 $7,714 $5,998 $3,837 $5,204 $975 $9,068 $40,048 
Provision for credit losses$239 $(85)$1,845 $155 $63 $(496)$76 $(560)$1,237 
Charge-offs$(508)$— $— $— $(188)$(75)$— $(326)$(1,097)
Recoveries50 4 257 2 — 152 8 145 618 
Ending balance$4,761 $2,191 $9,816 $6,155 $3,712 $4,785 $1,059 $8,327 $40,806 
Six Months Ended June 30, 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
Beginning balance$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 acquisition$69 $127 $239 $240 $68 $492 $5 $7 $1,247 
Provision for credit losses$1,178 $444 $(161)$(606)$978 $960 $237 $991 $4,021 
Charge-offs$— $(3)$— $— $— $(26)$— $(292)$(321)
Recoveries31 14 238 8 — 95 2 163 551 
Ending balance$3,735 $2,362 $7,538 $5,834 $2,603 $4,077 $2,607 $9,058 $37,814 
Gross charge-offs, further sorted by origination year, were as follows during the three months ended June 30, 2024 and 2023.
Gross Charge-Offs for the Three Months Ended June 30, 2024
Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
(dollars in thousands)20242023202220212020Prior
Commercial and industrial$— $326 $75 $— $— $— $92 $— $493 
Commercial real estate - owner occupied— — — — — — — — — 
Commercial real estate - non-owner occupied— — — — — — — — — 
Construction and land development— — — — — — — — — 
Multi-family— — — 188 — — — — 188 
One-to-four family residential— — 4 13 4 1 32 — 54 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other84 — — — — — 51 — 135 
Total$84 $326 $79 $201 $4 $1 $175 $— $870 
Gross Charge-Offs for the Three Months Ended June 30, 2023
Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
(dollars in thousands)20232022202120202019Prior
Commercial and industrial$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied— — — — — — — — — 
Commercial real estate - non-owner occupied— — — — — — — — — 
Construction and land development— — — — — — — — — 
Multi-family— — — — — — — — — 
One-to-four family residential— — — — — 4 — — 4 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other100 21 — — — — 54 — 175 
Total$100 $21 $— $— $— $4 $54 $— $179 
Gross charge-offs, further sorted by origination year, were as follows during the six months ended June 30, 2024 and 2023.
Gross Charge-Offs for the Six Months Ended June 30, 2024
Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
(dollars in thousands)20242023202220212020Prior
Commercial and industrial$— $329 $75 $— $— $11 $93 $— $508 
Commercial real estate - owner occupied— — — — — — — — — 
Commercial real estate - non-owner occupied— — — — — — — — — 
Construction and land development— — — — — — — — — 
Multi-family— — — 188 — — — — 188 
One-to-four family residential— — 7 13 4 7 44 — 75 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other128 56 6 — — — 136 — 326 
Total$128 $385 $88 $201 $4 $18 $273 $— $1,097 
Gross Charge-Offs for the Six Months Ended June 30, 2023
Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
(dollars in thousands)20232022202120202019Prior
Commercial and industrial$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied— 3 — — — — — — 3 
Commercial real estate - non-owner occupied— — — — — — — — — 
Construction and land development— — — — — — — — — 
Multi-family— — — — — — — — — 
One-to-four family residential— — — — 1 25 — — 26 
Agricultural and farmland— — — — — — — — — 
Municipal, consumer, and other135 74 — 9 — — 74 — 292 
Total$135 $77 $— $9 $1 $25 $74 $— $321 
The following tables present loans and the related allowance for credit losses by category:
June 30, 2024
(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$399,214 $289,992 $874,256 $365,155 $429,951 $479,256 $285,678 $230,024 $3,353,526 
Individually evaluated for impairment1,062 — 14,937 216 — 5,079 144 10,519 31,957 
Total$400,276 $289,992 $889,193 $365,371 $429,951 $484,335 $285,822 $240,543 $3,385,483 
Allowance for credit losses:
Collectively evaluated for impairment$4,657 $2,191 $9,127 $6,155 $3,712 $4,724 $1,059 $5,741 $37,366 
Individually evaluated for impairment104 — 689 — — 61 — 2,586 3,440 
Total$4,761 $2,191 $9,816 $6,155 $3,712 $4,785 $1,059 $8,327 $40,806 
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 $40,048 
The following tables present collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:
June 30, 2024
Amortized CostAllowance
for Credit
Losses
Primary Collateral Type
(dollars in thousands)Real EstateVehiclesOtherTotal
Commercial and industrial$— $1,011 $51 $1,062 $104 
Commercial real estate - owner occupied— — — — — 
Commercial real estate - non-owner occupied14,937 — — 14,937 689 
Construction and land development216 — — 216 — 
Multi-family— — — — — 
One-to-four family residential5,079 — — 5,079 61 
Agricultural and farmland144 — — 144 — 
Municipal, consumer, and other10,438 43 38 10,519 2,586 
Total$30,814 $1,054 $89 $31,957 $3,440 
December 31, 2023
Amortized CostAllowance
for Credit
Losses
Primary Collateral Type
(dollars in thousands)Real EstateVehiclesOtherTotal
Commercial and industrial$— $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 
Accrued interest on loans is excluded from the estimate of credit losses and totaled $17.0 million and $18.4 million as of June 30, 2024 and December 31, 2023, respectively.
Past Due and Nonaccrual Status
Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.
The following tables present loans by category based on current payment and accrual status:
June 30, 2024
Accruing Interest
(dollars in thousands)Current30 - 89 Days
Past Due		90+ Days
Past Due		NonaccrualTotal
Loans
Commercial and industrial$397,982 $1,232 $— $1,062 $400,276 
Commercial real estate - owner occupied289,663 329 — — 289,992 
Commercial real estate - non-owner occupied887,226 124 — 1,843 889,193 
Construction and land development365,155 — — 216 365,371 
Multi-family429,951 — — — 429,951 
One-to-four family residential477,267 1,989 — 5,079 484,335 
Agricultural and farmland283,988 1,690 — 144 285,822 
Municipal, consumer, and other240,327 128 7 81 240,543 
Total$3,371,559 $5,492 $7 $8,425 $3,385,483 
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 
The following tables present nonaccrual loans with and without a related allowance for credit losses:
June 30, 2024
(dollars in thousands)Nonaccrual
With
Allowance for
Credit Losses		Nonaccrual
With No
Allowance for
Credit Losses		Total
Nonaccrual
Commercial and industrial$313 $749 $1,062 
Commercial real estate - owner occupied— — — 
Commercial real estate - non-owner occupied— 1,843 1,843 
Construction and land development216 — 216 
Multi-family— — — 
One-to-four family residential352 4,727 5,079 
Agricultural and farmland— 144 144 
Municipal, consumer, and other59 22 81 
Total$940 $7,485 $8,425 
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 
Credit Quality Indicators
In June 2024, the Company updated its risk rating categories to add a special mention category to provide another level of granularity in distinguishing risk levels of loans. As of June 30, 2024, $19.5 million of the special mention loans would have been considered pass-watch and $10.6 million would have been considered substandard under the previous risk rating categories.
The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $750 thousand in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into the following major categories:
Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.
Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant a special mention, substandard, or doubtful classification.
Special Mention – a special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the assets or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.
Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.
Doubtful – a doubtful loan has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. There were no loans classified as Doubtful as of June 30, 2024 and December 31, 2023.
The following tables present loans by category based on their assigned risk ratings determined by management:
June 30, 2024
(dollars in thousands)PassPass-WatchSpecial MentionSubstandardTotal
Commercial and industrial$389,429 $4,044 $1,647 $5,156 $400,276 
Commercial real estate - owner occupied271,725 8,762 3,459 6,046 289,992 
Commercial real estate - non-owner occupied833,470 22,077 203 33,443 889,193 
Construction and land development340,960 23,665 — 746 365,371 
Multi-family410,272 3,892 15,787 — 429,951 
One-to-four family residential464,960 6,680 3,065 9,630 484,335 
Agricultural and farmland263,070 17,388 1,678 3,686 285,822 
Municipal, consumer, and other223,994 1,696 4,243 10,610 240,543 
Total$3,197,880 $88,204 $30,082 $69,317 $3,385,483 
December 31, 2023
(dollars in thousands)PassPass-WatchSubstandardTotal
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 
Risk ratings of loans, further sorted by origination year, are as follows as of June 30, 2024:
(dollars in thousands)Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
20242023202220212020Prior
Commercial and industrial
Pass$23,459 $61,841 $52,970 $15,494 $22,508 $33,263 $177,985 $1,909 $389,429 
Pass-Watch29 1,330 558 229 104 1,102 486 206 4,044 
Special Mention— — 282 73 — — 710 582 1,647 
Substandard— 2,897 487 823 — — 668 281 5,156 
Total$23,488 $66,068 $54,297 $16,619 $22,612 $34,365 $179,849 $2,978 $400,276 
Commercial real estate - owner occupied
Pass$16,517 $26,064 $64,465 $50,365 $50,035 $52,299 $11,914 $66 $271,725 
Pass-Watch293 3,167 746 2,394 713 1,449 — — 8,762 
Special Mention1,984 — — — — — 1,475 — 3,459 
Substandard— 634 82 3,624 1,075 631 — — 6,046 
Total$18,794 $29,865 $65,293 $56,383 $51,823 $54,379 $13,389 $66 $289,992 
Commercial real estate - non-owner occupied
Pass$39,574 $119,976 $243,744 $232,353 $93,139 $93,059 $10,009 $1,616 $833,470 
Pass-Watch3,229 766 — 3,918 343 463 13,315 43 22,077 
Special Mention— — — — — 58 145 — 203 
Substandard— 13,496 6,784 — — 13,163 — — 33,443 
Total$42,803 $134,238 $250,528 $236,271 $93,482 $106,743 $23,469 $1,659 $889,193 
Construction and land development
Pass$91,952 $125,269 $88,490 $21,357 $876 $3,006 $9,749 $261 $340,960 
Pass-Watch— 937 8,630 12,549 — 19 693 837 23,665 
Special Mention— — — — — — — — — 
Substandard475 — 216 — — 55 — — 746 
Total$92,427 $126,206 $97,336 $33,906 $876 $3,080 $10,442 $1,098 $365,371 
Multi-family
Pass$17,383 $83,543 $95,243 $112,008 $52,031 $44,854 $4,417 $793 $410,272 
Pass-Watch2,807 — 572 — — 507 — 6 3,892 
Special Mention6,976 — — — 8,811 — — — 15,787 
Substandard— — — — — — — — — 
Total$27,166 $83,543 $95,815 $112,008 $60,842 $45,361 $4,417 $799 $429,951 
One-to-four family residential
Pass$25,775 $94,809 $87,957 $76,529 $61,139 $53,340 $60,417 $4,994 $464,960 
Pass-Watch908 2,074 333 316 466 2,111 192 280 6,680 
Special Mention— — — 604 125 — — 2,336 3,065 
Substandard79 739 1,508 638 513 5,666 — 487 9,630 
Total$26,762 $97,622 $89,798 $78,087 $62,243 $61,117 $60,609 $8,097 $484,335 
Agricultural and farmland
Pass$28,788 $38,360 $33,420 $29,642 $29,779 $10,312 $90,557 $2,212 $263,070 
Pass-Watch137 2,745 1,902 1,472 24 688 10,170 250 17,388 
Special Mention— 472 106 — 1,100 — — — 1,678 
Substandard331 — — 12 3,199 144 — — 3,686 
Total$29,256 $41,577 $35,428 $31,126 $34,102 $11,144 $100,727 $2,462 $285,822 
(dollars in thousands)Term Loans by Origination YearRevolving
Loans		Revolving
Loans
Converted
to Term		Total
20242023202220212020Prior
Municipal, Consumer, and other
Pass$63,682 $37,853 $23,308 $24,288 $13,259 $40,382 $21,222 $— $223,994 
Pass-Watch— — 27 10 — 1,659 — — 1,696 
Special Mention— — — — — 4,217 26 — 4,243 
Substandard51 55 63 — — 10,441 — — 10,610 
Total$63,733 $37,908 $23,398 $24,298 $13,259 $56,699 $21,248 $— $240,543 
Total by Risk Rating
Pass$307,130 $587,715 $689,597 $562,036 $322,766 $330,515 $386,270 $11,851 $3,197,880 
Pass-Watch7,403 11,019 12,768 20,888 1,650 7,998 24,856 1,622 88,204 
Special Mention8,960 472 388 677 10,036 4,275 2,356 2,918 30,082 
Substandard936 17,821 9,140 5,097 4,787 30,100 668 768 69,317 
Total$324,429 $617,027 $711,893 $588,698 $339,239 $372,888 $414,150 $17,159 $3,385,483 
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 
Modifications
There were no loan modifications to borrowers in financial distress during the three and six months ended June 30, 2024 and 2023. There were no modified loans to borrowers in financial distress outstanding as of June 30, 2024 and December 31, 2023.
Pledged Loans
As of June 30, 2024 and December 31, 2023, the Company pledged loans totaling $1.88 billion and $1.20 billion, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity.