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Note 7 - Loans Receivable and Credit Disclosures | 9 Months Ended
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Sep. 30, 2022
Notes to Financial Statements |
Financing Receivables [Text Block] | 7. Loans Receivable and Credit Disclosures The composition of loans receivable as of September 30, 2022 and December 31, 2021 is as follows (in thousands):
|  | 2022 |  |  | 2021 |
Real estate - construction |  | $ | 42,816 |  |  | $ | 42,638 |
Real estate - 1 to 4 family residential |  |  | 281,046 |  |  |  | 246,745 |
Real estate - commercial |  |  | 519,345 |  |  |  | 515,367 |
Real estate - agricultural |  |  | 159,099 |  |  |  | 153,457 |
Commercial 1 |  |  | 73,554 |  |  |  | 75,482 |
Agricultural |  |  | 98,914 |  |  |  | 111,881 |
Consumer and other |  |  | 15,994 |  |  |  | 15,097 |
|  |  | 1,190,768 |  |  |  | 1,160,667 |
Less: |  |  |  |  |  |  |  |
Allowance for loan losses |  |  | (15,897 | ) |  |  | (16,621 | )
Deferred loan costs, net |  |  | 376 |  |  |  | 62 |
Loans receivable, net |  | $ | 1,175,247 |  |  | $ | 1,144,108 |
1 Commercial loan portfolio includes $0.2 million and $6.0 million of Paycheck Protection Program ("PPP") loans as of September 30, 2022 and December 31, 2021, respectively.
The Paycheck Protection Program (PPP) was established by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) in response to the Coronavirus Disease 2019 (COVID-19) pandemic. Funding was extended into 2021. The PPP is administered by the Small Business Administration (SBA). PPP loans are forgivable by the SBA in qualifying circumstances and are 100 percent guaranteed by the SBA. Activity in the allowance for loan losses, on a disaggregated basis, for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):
|  | Three Months Ended September 30, 2022 |
|  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Balance, June 30, 2022 |  | $ | 606 |  |  | $ | 2,920 |  |  | $ | 8,360 |  |  | $ | 1,692 |  |  | $ | 1,125 |  |  | $ | 1,484 |  |  | $ | 233 |  |  | $ | 16,420 |
Provision (credit) for loan losses |  |  | (2 | ) |  |  | 83 |  |  |  | (492 | ) |  |  | (94 | ) |  |  | (25 | ) |  |  | 24 |  |  |  | (14 | ) |  |  | (520 | )
Recoveries of loans charged-off |  |  | - |  |  |  | 4 |  |  |  | 1 |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | 6 |
Loans charged-off |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2 | ) |  |  | (7 | ) |  |  | - |  |  |  | (9 | )
Balance, September 30, 2022 |  | $ | 604 |  |  | $ | 3,007 |  |  | $ | 7,869 |  |  | $ | 1,598 |  |  | $ | 1,099 |  |  | $ | 1,501 |  |  | $ | 219 |  |  | $ | 15,897 |
|  | Nine Months Ended September 30, 2022 |
|  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Balance, December 31, 2021 |  | $ | 675 |  |  | $ | 2,752 |  |  | $ | 8,406 |  |  | $ | 1,584 |  |  | $ | 1,170 |  |  | $ | 1,836 |  |  | $ | 198 |  |  | $ | 16,621 |
Provision (credit) for loan losses |  |  | (71 | ) |  |  | 257 |  |  |  | (539 | ) |  |  | 14 |  |  |  | (72 | ) |  |  | (328 | ) |  |  | 33 |  |  |  | (706 | )
Recoveries of loans charged-off |  |  | - |  |  |  | 8 |  |  |  | 2 |  |  |  | - |  |  |  | 3 |  |  |  | - |  |  |  | 4 |  |  |  | 17 |
Loans charged-off |  |  | - |  |  |  | (10 | ) |  |  | - |  |  |  | - |  |  |  | (2 | ) |  |  | (7 | ) |  |  | (16 | ) |  |  | (35 | )
Balance, September 30, 2022 |  | $ | 604 |  |  | $ | 3,007 |  |  | $ | 7,869 |  |  | $ | 1,598 |  |  | $ | 1,099 |  |  | $ | 1,501 |  |  | $ | 219 |  |  | $ | 15,897 |
|  | Three Months Ended September 30, 2021 |
|  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Balance, June 30, 2021 |  | $ | 738 |  |  | $ | 2,603 |  |  | $ | 8,889 |  |  | $ | 1,614 |  |  | $ | 1,140 |  |  | $ | 1,675 |  |  | $ | 234 |  |  | $ | 16,893 |
Provision (credit) for loan losses |  |  | (156 | ) |  |  | 59 |  |  |  | 33 |  |  |  | (36 | ) |  |  | 64 |  |  |  | (59 | ) |  |  | 1 |  |  |  | (94 | )
Recoveries of loans charged-off |  |  | - |  |  |  | 1 |  |  |  | 1 |  |  |  | - |  |  |  | 1 |  |  |  | 43 |  |  |  | 1 |  |  |  | 47 |
Loans charged-off |  |  | - |  |  |  | (4 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (12 | ) |  |  | (16 | )
Balance, September 30, 2021 |  | $ | 582 |  |  | $ | 2,659 |  |  | $ | 8,923 |  |  | $ | 1,578 |  |  | $ | 1,205 |  |  | $ | 1,659 |  |  | $ | 224 |  |  | $ | 16,830 |
|  | Nine Months Ended September 30, 2021 |
|  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Balance, December 31, 2020 |  | $ | 725 |  |  | $ | 2,581 |  |  | $ | 8,930 |  |  | $ | 1,595 |  |  | $ | 1,453 |  |  | $ | 1,696 |  |  | $ | 235 |  |  | $ | 17,215 |
Provision (credit) for loan losses |  |  | (143 | ) |  |  | (155 | ) |  |  | (10 | ) |  |  | (17 | ) |  |  | (138 | ) |  |  | (85 | ) |  |  | 8 |  |  |  | (540 | )
Recoveries of loans charged-off |  |  | - |  |  |  | 267 |  |  |  | 3 |  |  |  | - |  |  |  | 3 |  |  |  | 48 |  |  |  | 8 |  |  |  | 329 |
Loans charged-off |  |  | - |  |  |  | (34 | ) |  |  | - |  |  |  | - |  |  |  | (113 | ) |  |  | - |  |  |  | (27 | ) |  |  | (174 | )
Balance, September 30, 2021 |  | $ | 582 |  |  | $ | 2,659 |  |  | $ | 8,923 |  |  | $ | 1,578 |  |  | $ | 1,205 |  |  | $ | 1,659 |  |  | $ | 224 |  |  | $ | 16,830 |
Allowance for loan losses disaggregated on the basis of impairment analysis method as of September 30, 2022 and December 31, 2021 is as follows (in thousands):
2022 |  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Individually evaluated for impairment |  | $ | - |  |  | $ | 30 |  |  | $ | 874 |  |  | $ | - |  |  | $ | - |  |  | $ | 83 |  |  | $ | 18 |  |  | $ | 1,005 |
Collectively evaluated for impairment |  |  | 604 |  |  |  | 2,977 |  |  |  | 6,995 |  |  |  | 1,598 |  |  |  | 1,099 |  |  |  | 1,418 |  |  |  | 201 |  |  |  | 14,892 |
Balance September 30, 2022 |  | $ | 604 |  |  | $ | 3,007 |  |  | $ | 7,869 |  |  | $ | 1,598 |  |  | $ | 1,099 |  |  | $ | 1,501 |  |  | $ | 219 |  |  | $ | 15,897 |
2021 |  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Individually evaluated for impairment |  | $ | - |  |  | $ | 40 |  |  | $ | 1,139 |  |  | $ | - |  |  | $ | 60 |  |  | $ | 132 |  |  | $ | 21 |  |  | $ | 1,392 |
Collectively evaluated for impairment |  |  | 675 |  |  |  | 2,712 |  |  |  | 7,267 |  |  |  | 1,584 |  |  |  | 1,110 |  |  |  | 1,704 |  |  |  | 177 |  |  |  | 15,229 |
Balance December 31, 2021 |  | $ | 675 |  |  | $ | 2,752 |  |  | $ | 8,406 |  |  | $ | 1,584 |  |  | $ | 1,170 |  |  | $ | 1,836 |  |  | $ | 198 |  |  | $ | 16,621 |
Loans receivable disaggregated on the basis of impairment analysis method as of September 30, 2022 and December 31, 2021 is as follows (in thousands):
2022 |  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Individually evaluated for impairment |  | $ | - |  |  | $ | 1,035 |  |  | $ | 13,144 |  |  | $ | 169 |  |  | $ | 276 |  |  | $ | 319 |  |  | $ | 26 |  |  | $ | 14,969 |
Collectively evaluated for impairment |  |  | 42,816 |  |  |  | 280,011 |  |  |  | 506,201 |  |  |  | 158,930 |  |  |  | 73,278 |  |  |  | 98,595 |  |  |  | 15,968 |  |  |  | 1,175,799 |
Balance September 30, 2022 |  | $ | 42,816 |  |  | $ | 281,046 |  |  | $ | 519,345 |  |  | $ | 159,099 |  |  | $ | 73,554 |  |  | $ | 98,914 |  |  | $ | 15,994 |  |  | $ | 1,190,768 |
2021 |  |  |  |  |  | 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Construction |  |  | Residential |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | and Other |  |  | Total |
Individually evaluated for impairment |  | $ | - |  |  | $ | 980 |  |  | $ | 9,792 |  |  | $ | 546 |  |  | $ | 330 |  |  | $ | 637 |  |  | $ | 27 |  |  | $ | 12,312 |
Collectively evaluated for impairment |  |  | 42,638 |  |  |  | 245,765 |  |  |  | 505,575 |  |  |  | 152,911 |  |  |  | 75,152 |  |  |  | 111,244 |  |  |  | 15,070 |  |  |  | 1,148,355 |
Balance December 31, 2021 |  | $ | 42,638 |  |  | $ | 246,745 |  |  | $ | 515,367 |  |  | $ | 153,457 |  |  | $ | 75,482 |  |  | $ | 111,881 |  |  | $ | 15,097 |  |  | $ | 1,160,667 |
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payment of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company applies its normal loan review procedures to identify loans that should be evaluated for impairment. Impaired loans, on a disaggregated basis, as of September 30, 2022 and December 31, 2021 (in thousands):
|  | 2022 |  |  | 2021 |
|  |  |  |  |  | Unpaid |  |  |  |  |  |  |  |  |  |  | Unpaid |  |  |  |  |
|  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Principal |  |  | Related |
|  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Balance |  |  | Allowance |
With no specific reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Real estate - 1 to 4 family residential |  |  | 839 |  |  |  | 879 |  |  |  | - |  |  |  | 677 |  |  |  | 739 |  |  |  | - |
Real estate - commercial |  |  | 3,739 |  |  |  | 3,774 |  |  |  | - |  |  |  | 124 |  |  |  | 142 |  |  |  | - |
Real estate - agricultural |  |  | 169 |  |  |  | 194 |  |  |  | - |  |  |  | 546 |  |  |  | 1,001 |  |  |  | - |
Commercial |  |  | 276 |  |  |  | 320 |  |  |  | - |  |  |  | 233 |  |  |  | 269 |  |  |  | - |
Agricultural |  |  | 48 |  |  |  | 58 |  |  |  | - |  |  |  | 322 |  |  |  | 521 |  |  |  | - |
Consumer and other |  |  | 8 |  |  |  | 10 |  |  |  | - |  |  |  | 6 |  |  |  | 8 |  |  |  | - |
Total loans with no specific reserve: |  |  | 5,079 |  |  |  | 5,235 |  |  |  | - |  |  |  | 1,908 |  |  |  | 2,680 |  |  |  | - |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - 1 to 4 family residential |  |  | 196 |  |  |  | 187 |  |  |  | 30 |  |  |  | 303 |  |  |  | 314 |  |  |  | 40 |
Real estate - commercial |  |  | 9,405 |  |  |  | 9,944 |  |  |  | 874 |  |  |  | 9,668 |  |  |  | 10,001 |  |  |  | 1,139 |
Real estate - agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Commercial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 97 |  |  |  | 98 |  |  |  | 60 |
Agricultural |  |  | 271 |  |  |  | 294 |  |  |  | 83 |  |  |  | 315 |  |  |  | 315 |  |  |  | 132 |
Consumer and other |  |  | 18 |  |  |  | 20 |  |  |  | 18 |  |  |  | 21 |  |  |  | 23 |  |  |  | 21 |
Total loans with specific reserve: |  |  | 9,890 |  |  |  | 10,445 |  |  |  | 1,005 |  |  |  | 10,404 |  |  |  | 10,751 |  |  |  | 1,392 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - 1 to 4 family residential |  |  | 1,035 |  |  |  | 1,066 |  |  |  | 30 |  |  |  | 980 |  |  |  | 1,053 |  |  |  | 40 |
Real estate - commercial |  |  | 13,144 |  |  |  | 13,718 |  |  |  | 874 |  |  |  | 9,792 |  |  |  | 10,143 |  |  |  | 1,139 |
Real estate - agricultural |  |  | 169 |  |  |  | 194 |  |  |  | - |  |  |  | 546 |  |  |  | 1,001 |  |  |  | - |
Commercial |  |  | 276 |  |  |  | 320 |  |  |  | - |  |  |  | 330 |  |  |  | 367 |  |  |  | 60 |
Agricultural |  |  | 319 |  |  |  | 352 |  |  |  | 83 |  |  |  | 637 |  |  |  | 836 |  |  |  | 132 |
Consumer and other |  |  | 26 |  |  |  | 30 |  |  |  | 18 |  |  |  | 27 |  |  |  | 31 |  |  |  | 21 |
|  | $ | 14,969 |  |  | $ | 15,680 |  |  | $ | 1,005 |  |  | $ | 12,312 |  |  | $ | 13,431 |  |  | $ | 1,392 |
Average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2022 and 2021 (in thousands):
|  | Three Months Ended September 30, |
|  | 2022 |  |  | 2021 |
|  | Average |  |  | Interest |  |  | Average |  |  | Interest |
|  | Recorded |  |  | Income |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Recognized |  |  | Investment |  |  | Recognized |
With no specific reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Real estate - 1 to 4 family residential |  |  | 781 |  |  |  | 39 |  |  |  | 813 |  |  |  | 8 |
Real estate - commercial |  |  | 1,929 |  |  |  | - |  |  |  | 132 |  |  |  | - |
Real estate - agricultural |  |  | 170 |  |  |  | - |  |  |  | 602 |  |  |  | - |
Commercial |  |  | 242 |  |  |  | - |  |  |  | 255 |  |  |  | - |
Agricultural |  |  | 39 |  |  |  | - |  |  |  | 318 |  |  |  | - |
Consumer and other |  |  | 6 |  |  |  | - |  |  |  | 6 |  |  |  | - |
Total loans with no specific reserve: |  |  | 3,167 |  |  |  | 39 |  |  |  | 2,126 |  |  |  | 8 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - 1 to 4 family residential |  |  | 98 |  |  |  | - |  |  |  | 164 |  |  |  | - |
Real estate - commercial |  |  | 9,500 |  |  |  | - |  |  |  | 9,922 |  |  |  | - |
Real estate - agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Commercial |  |  | 17 |  |  |  | 1 |  |  |  | 29 |  |  |  | - |
Agricultural |  |  | 286 |  |  |  | - |  |  |  | 327 |  |  |  | - |
Consumer and other |  |  | 19 |  |  |  | - |  |  |  | 30 |  |  |  | - |
Total loans with specific reserve: |  |  | 9,920 |  |  |  | 1 |  |  |  | 10,472 |  |  |  | - |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - 1 to 4 family residential |  |  | 879 |  |  |  | 39 |  |  |  | 977 |  |  |  | 8 |
Real estate - commercial |  |  | 11,429 |  |  |  | - |  |  |  | 10,054 |  |  |  | - |
Real estate - agricultural |  |  | 170 |  |  |  | - |  |  |  | 602 |  |  |  | - |
Commercial |  |  | 259 |  |  |  | 1 |  |  |  | 284 |  |  |  | - |
Agricultural |  |  | 325 |  |  |  | - |  |  |  | 645 |  |  |  | - |
Consumer and other |  |  | 25 |  |  |  | - |  |  |  | 36 |  |  |  | - |
|  | $ | 13,087 |  |  | $ | 40 |  |  | $ | 12,598 |  |  | $ | 8 |
|  | Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |
|  | Average |  |  | Interest |  |  | Average |  |  | Interest |
|  | Recorded |  |  | Income |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Recognized |  |  | Investment |  |  | Recognized |
With no specific reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  | $ | - |  |  | $ | - |  |  | $ | 84 |  |  | $ | - |
Real estate - 1 to 4 family residential |  |  | 722 |  |  |  | 55 |  |  |  | 587 |  |  |  | 19 |
Real estate - commercial |  |  | 1,026 |  |  |  | - |  |  |  | 162 |  |  |  | 297 |
Real estate - agricultural |  |  | 357 |  |  |  | 14 |  |  |  | 990 |  |  |  | 25 |
Commercial |  |  | 234 |  |  |  | 5 |  |  |  | 400 |  |  |  | - |
Agricultural |  |  | 164 |  |  |  | - |  |  |  | 339 |  |  |  | 14 |
Consumer and other |  |  | 5 |  |  |  | - |  |  |  | 6 |  |  |  | - |
Total loans with no specific reserve: |  |  | 2,508 |  |  |  | 74 |  |  |  | 2,568 |  |  |  | 355 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - 1 to 4 family residential |  |  | 206 |  |  |  | 1 |  |  |  | 336 |  |  |  | - |
Real estate - commercial |  |  | 9,584 |  |  |  | - |  |  |  | 9,969 |  |  |  | - |
Real estate - agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Commercial |  |  | 43 |  |  |  | 1 |  |  |  | 181 |  |  |  | - |
Agricultural |  |  | 299 |  |  |  | - |  |  |  | 385 |  |  |  | - |
Consumer and other |  |  | 20 |  |  |  | - |  |  |  | 35 |  |  |  | - |
Total loans with specific reserve: |  |  | 10,152 |  |  |  | 2 |  |  |  | 10,906 |  |  |  | - |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - construction |  |  | - |  |  |  | - |  |  |  | 84 |  |  |  | - |
Real estate - 1 to 4 family residential |  |  | 928 |  |  |  | 56 |  |  |  | 923 |  |  |  | 19 |
Real estate - commercial |  |  | 10,610 |  |  |  | - |  |  |  | 10,131 |  |  |  | 297 |
Real estate - agricultural |  |  | 357 |  |  |  | 14 |  |  |  | 990 |  |  |  | 25 |
Commercial |  |  | 277 |  |  |  | 6 |  |  |  | 581 |  |  |  | - |
Agricultural |  |  | 463 |  |  |  | - |  |  |  | 724 |  |  |  | 14 |
Consumer and other |  |  | 25 |  |  |  | - |  |  |  | 41 |  |  |  | - |
|  | $ | 12,660 |  |  | $ | 76 |  |  | $ | 13,474 |  |  | $ | 355 |
The interest foregone on nonaccrual loans for the three months ended September 30, 2022 and 2021 was approximately $224 thousand and $154 thousand, respectively. The interest foregone on nonaccrual loans for the nine months ended September 30, 2022 and 2021 was approximately $535 thousand and $523 thousand, respectively. Nonaccrual loans at September 30, 2022 and December 31, 2021 were $15.2 million and $12.7 million, respectively. The Company had loans meeting the definition of a troubled debt restructuring (TDR) of $10.8 million as of September 30, 2022, all of which were included in impaired and nonaccrual loans. The Company had TDRs of $11.3 million as of December 31, 2021, all of which were included in impaired and nonaccrual loans. The Company’s TDRs, on a disaggregated basis, occurring in the three and nine months ended September 30, 2022 and 2021, were as follows (dollars in thousands):
|  | Three Months Ended September 30, |
|  | 2022 |  |  | 2021 |
|  |  |  |  |  | Pre-Modification |  |  | Post-Modification |  |  |  |  |  |  | Pre-Modification |  |  | Post-Modification |
|  |  |  |  |  | Outstanding |  |  | Outstanding |  |  |  |  |  |  | Outstanding |  |  | Outstanding |
|  | Number of |  |  | Recorded |  |  | Recorded |  |  | Number of |  |  | Recorded |  |  | Recorded |
|  | Contracts |  |  | Investment |  |  | Investment |  |  | Contracts |  |  | Investment |  |  | Investment |
Real estate - construction |  |  | - |  |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | - |  |  | $ | - |
Real estate - 1 to 4 family residential |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - commercial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Commercial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | 6 |  |  |  | 6 |
Agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
|  |  | - |  |  | $ | - |  |  | $ | - |  |  |  | 1 |  |  | $ | 6 |  |  | $ | 6 |
|  | Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |
|  |  |  |  |  | Pre-Modification |  |  | Post-Modification |  |  |  |  |  |  | Pre-Modification |  |  | Post-Modification |
|  |  |  |  |  | Outstanding |  |  | Outstanding |  |  |  |  |  |  | Outstanding |  |  | Outstanding |
|  | Number of |  |  | Recorded |  |  | Recorded |  |  | Number of |  |  | Recorded |  |  | Recorded |
|  | Contracts |  |  | Investment |  |  | Investment |  |  | Contracts |  |  | Investment |  |  | Investment |
Real estate - construction |  |  | - |  |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | - |  |  | $ | - |
Real estate - 1 to 4 family residential |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | 578 |  |  |  | 578 |
Real estate - commercial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real estate - agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Commercial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2 |  |  |  | 64 |  |  |  | 64 |
Agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
|  |  | - |  |  | $ | - |  |  | $ | - |  |  |  | 5 |  |  | $ | 642 |  |  | $ | 642 |
During the three and nine months ended September 30, 2022, the Company did not grant any concessions to borrowers facing financial difficulties. During the three months ended September 30, 2021, the Company granted concessions to one borrower facing financial difficulties. The loan was restructured with a lower interest rate and accrued interest was waived. During the nine months ended September 30, 2021, the Company granted concessions to four borrowers, with five contracts, facing financial difficulties. The loans were restructured with a lower interest rate or amortization periods longer than a typical loan. There were no TDR loans that were modified during the twelve months ended September 30, 2022 that had payment defaults. The Company considers TDR loans to have payment default when it is past due 60 days or more. There were no net charge-offs related to TDRs for the three months ended September 30, 2022 and 2021. There were no net charge-offs and $262 thousand of net recoveries related to TDRs for the nine months ended September 30, 2022 and 2021, respectively. No additional specific reserve was provided for the three and nine months ended September 30, 2022 and 2021. An aging analysis of the recorded investments in loans, on a disaggregated basis, as of September 30, 2022 and December 31, 2021, is as follows (in thousands):
2022 |  |  |  |  |  | 90 Days |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90 Days |
|  | 30-89 |  |  | or Greater |  |  | Total |  |  |  |  |  |  |  |  |  |  | or Greater |
|  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Current |  |  | Total |  |  | Accruing |
Real estate - construction |  | $ | 305 |  |  | $ | - |  |  | $ | 305 |  |  | $ | 42,511 |  |  | $ | 42,816 |  |  | $ | - |
Real estate - 1 to 4 family residential |  |  | 701 |  |  |  | 72 |  |  |  | 773 |  |  |  | 280,273 |  |  |  | 281,046 |  |  |  | 7 |
Real estate - commercial |  |  | 512 |  |  |  | 1,483 |  |  |  | 1,995 |  |  |  | 517,350 |  |  |  | 519,345 |  |  |  | - |
Real estate - agricultural |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 159,099 |  |  |  | 159,099 |  |  |  | - |
Commercial |  |  | 276 |  |  |  | 75 |  |  |  | 351 |  |  |  | 73,203 |  |  |  | 73,554 |  |  |  | - |
Agricultural |  |  | 67 |  |  |  | 12 |  |  |  | 79 |  |  |  | 98,835 |  |  |  | 98,914 |  |  |  | - |
Consumer and other |  |  | 38 |  |  |  | 10 |  |  |  | 48 |  |  |  | 15,946 |  |  |  | 15,994 |  |  |  | 5 |
|  | $ | 1,899 |  |  | $ | 1,652 |  |  | $ | 3,551 |  |  | $ | 1,187,217 |  |  | $ | 1,190,768 |  |  | $ | 12 |
2021 |  |  |  |  |  | 90 Days |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90 Days |
|  | 300899 |  |  | or Greater |  |  | Total |  |  |  |  |  |  |  |  |  |  | or Greater |
|  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Current |  |  | Total |  |  | Accruing |
Real estate - construction |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 42,638 |  |  | $ | 42,638 |  |  | $ | - |
Real estate - 1 to 4 family residential |  |  | 1,198 |  |  |  | 482 |  |  |  | 1,680 |  |  |  | 245,065 |  |  |  | 246,745 |  |  |  | 169 |
Real estate - commercial |  |  | 24 |  |  |  | - |  |  |  | 24 |  |  |  | 515,343 |  |  |  | 515,367 |  |  |  | - |
Real estate - agricultural |  |  | 30 |  |  |  | - |  |  |  | 30 |  |  |  | 153,427 |  |  |  | 153,457 |  |  |  | - |
Commercial |  |  | 251 |  |  |  | 15 |  |  |  | 266 |  |  |  | 75,216 |  |  |  | 75,482 |  |  |  | - |
Agricultural |  |  | 172 |  |  |  | - |  |  |  | 172 |  |  |  | 111,709 |  |  |  | 111,881 |  |  |  | - |
Consumer and other |  |  | 49 |  |  |  | - |  |  |  | 49 |  |  |  | 15,048 |  |  |  | 15,097 |  |  |  | - |
|  | $ | 1,724 |  |  | $ | 497 |  |  | $ | 2,221 |  |  | $ | 1,158,446 |  |  | $ | 1,160,667 |  |  | $ | 169 |
The credit risk profile by internally assigned grade, on a disaggregated basis, as of September 30, 2022 and December 31, 2021 is as follows (in thousands):
2022 |  | Construction |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | Total |
Pass |  | $ | 42,588 |  |  | $ | 413,090 |  |  | $ | 134,873 |  |  | $ | 65,221 |  |  | $ | 81,530 |  |  | $ | 737,302 |
Watch |  |  | 228 |  |  |  | 71,674 |  |  |  | 19,105 |  |  |  | 6,452 |  |  |  | 16,556 |  |  |  | 114,015 |
Special Mention |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Substandard |  |  | - |  |  |  | 21,437 |  |  |  | 4,952 |  |  |  | 1,605 |  |  |  | 509 |  |  |  | 28,503 |
Substandard-Impaired |  |  | - |  |  |  | 13,144 |  |  |  | 169 |  |  |  | 276 |  |  |  | 319 |  |  |  | 13,908 |
|  | $ | 42,816 |  |  | $ | 519,345 |  |  | $ | 159,099 |  |  | $ | 73,554 |  |  | $ | 98,914 |  |  | $ | 893,728 |
2021 |  | Construction |  |  | Commercial |  |  | Agricultural |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Real Estate |  |  | Real Estate |  |  | Real Estate |  |  | Commercial |  |  | Agricultural |  |  | Total |
Pass |  | $ | 38,753 |  |  | $ | 381,346 |  |  | $ | 126,157 |  |  | $ | 63,141 |  |  | $ | 95,289 |  |  | $ | 704,686 |
Watch |  |  | 239 |  |  |  | 99,127 |  |  |  | 17,853 |  |  |  | 8,132 |  |  |  | 7,421 |  |  |  | 132,772 |
Special Mention |  |  | - |  |  |  | 3,085 |  |  |  | 3,519 |  |  |  | 762 |  |  |  | 7,664 |  |  |  | 15,030 |
Substandard |  |  | 3,646 |  |  |  | 22,017 |  |  |  | 5,382 |  |  |  | 3,117 |  |  |  | 870 |  |  |  | 35,032 |
Substandard-Impaired |  |  | - |  |  |  | 9,792 |  |  |  | 546 |  |  |  | 330 |  |  |  | 637 |  |  |  | 11,305 |
|  | $ | 42,638 |  |  | $ | 515,367 |  |  | $ | 153,457 |  |  | $ | 75,482 |  |  | $ | 111,881 |  |  | $ | 898,825 |
The credit risk profile based on payment activity, on a disaggregated basis, as of September 30, 2022 and December 31, 2021 is as follows (in thousands):
2022 |  | 1-4 Family |  |  |  |  |  |  |  |  |
|  | Residential |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | and Other |  |  | Total |
Performing |  | $ | 280,011 |  |  | $ | 15,964 |  |  | $ | 295,975 |
Non-performing |  |  | 1,035 |  |  |  | 30 |  |  |  | 1,065 |
|  | $ | 281,046 |  |  | $ | 15,994 |  |  | $ | 297,040 |
2021 |  | 1-4 Family |  |  |  |  |  |  |  |  |
|  | Residential |  |  | Consumer |  |  |  |  |
|  | Real Estate |  |  | and Other |  |  | Total |
Performing |  | $ | 245,598 |  |  | $ | 15,067 |  |  | $ | 260,665 |
Non-performing |  |  | 1,147 |  |  |  | 30 |  |  |  | 1,177 |
|  | $ | 246,745 |  |  | $ | 15,097 |  |  | $ | 261,842 |

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