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LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS | LOANS, ALLOWANCE FOR LOAN LOSSES AND IMPAIRED LOANS Portfolio Segments: Commercial real estate loans, including multi-family, agricultural, and construction and land development loans, are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The level of owner-occupied property versus non-owner-occupied property are tracked and monitored on a regular basis. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 75%. Commercial and industrial (“C&I”) loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Agricultural operating loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines. Operating lines are typically written for one year and secured by the crop and other farm assets or other business assets, as considered necessary. Agricultural loans carry significant credit risks as they may involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. SBA PPP loan balances are 100% guaranteed under the Small Business Association’s Paycheck Protection Program and may be forgiven in full, depending on use of funds and eligibility. These SBA-backed loans helped businesses keep their workforce employed during the COVID-19 crisis. Eligible borrowers, who qualify for full loan forgiveness during the eight to twenty four week period following loan disbursement, can apply for forgiveness, once all proceeds for which the borrower requested forgiveness has been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. All of the SBA PPP originated loan balances were forgiven and repaid at June 30, 2022. Residential mortgage loans are collateralized by primary and secondary positions on real estate and are underwritten primarily based on borrower’s documented income, credit scores, and collateral values. Under consumer home equity loan guidelines, the borrower will be approved for a loan based on a percentage of their home’s appraised value less the balance owed on the existing first mortgage. Credit risk is minimized within the residential mortgage portfolio due to relatively small loan account balances spread across many individual borrowers. Management evaluates trends in past due loans and current economic factors such as the housing price index on a regular basis. Consumer installment loans are comprised of originated indirect paper loans secured primarily by boats and recreational vehicles and other consumer loans secured primarily by automobiles and other personal assets. Consumer loan underwriting terms often depend on the collateral type, debt to income ratio and the borrower’s creditworthiness as evidenced by their credit score. In the event of a consumer installment loan default, collateral value alone may not provide an adequate source of repayment of the outstanding loan balance. This shortage is a result of the greater likelihood of damage, loss and depreciation for consumer based collateral. Loans by classes within portfolio segments were as follows:
|  | December 31, 2022 |  | December 31, 2021 |  |
Originated Loans: |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |
Commercial real estate |  | $ | 640,816 |  |  | $ | 578,395 |  |  |
Agricultural real estate |  | 69,431 |  |  | 52,372 |  |  |
Multi-family real estate |  | 205,601 |  |  | 174,050 |  |  |
Construction and land development |  | 101,681 |  |  | 78,613 |  |  |
C&I/Agricultural operating: |  |  |  |  |  |
Commercial and industrial |  | 127,115 |  |  | 107,937 |  |  |
Agricultural operating |  | 23,124 |  |  | 26,202 |  |  |
Residential mortgage: |  |  |  |  |  |
Residential mortgage |  | 84,783 |  |  | 63,855 |  |  |
Purchased HELOC loans |  | 3,262 |  |  | 3,871 |  |  |
Consumer installment: |  |  |  |  |  |
Originated indirect paper |  | 10,236 |  |  | 15,971 |  |  |
Other Consumer |  | 6,894 |  |  | 8,473 |  |  |
Total originated loans before SBA PPP loans |  | $ | 1,272,943 |  |  | $ | 1,109,739 |  |  |
SBA PPP loans |  | — |  |  | 8,755 |  |  |
Total originated loans |  | $ | 1,272,943 |  |  | $ | 1,118,494 |  |  |
Acquired Loans: |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |
Commercial real estate |  | $ | 85,155 |  |  | $ | 120,070 |  |  |
Agricultural real estate |  | 18,477 |  |  | 26,123 |  |  |
Multi-family real estate |  | 3,307 |  |  | 4,299 |  |  |
Construction and land development |  | 811 |  |  | 907 |  |  |
C&I/Agricultural operating: |  |  |  |  |  |
Commercial and industrial |  | 8,898 |  |  | 14,230 |  |  |
Agricultural operating |  | 5,682 |  |  | 5,386 |  |  |
Residential mortgage: |  |  |  |  |  |
Residential mortgage |  | 20,606 |  |  | 27,135 |  |  |
Consumer installment: |  |  |  |  |  |
Other Consumer |  | 256 |  |  | 401 |  |  |
Total acquired loans |  | $ | 143,192 |  |  | $ | 198,551 |  |  |
Total Loans: |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |
Commercial real estate |  | $ | 725,971 |  |  | $ | 698,465 |  |  |
Agricultural real estate |  | 87,908 |  |  | 78,495 |  |  |
Multi-family real estate |  | 208,908 |  |  | 178,349 |  |  |
Construction and land development |  | 102,492 |  |  | 79,520 |  |  |
C&I/Agricultural operating: |  |  |  |  |  |
Commercial and industrial |  | 136,013 |  |  | 122,167 |  |  |
Agricultural operating |  | 28,806 |  |  | 31,588 |  |  |
Residential mortgage: |  |  |  |  |  |
Residential mortgage |  | 105,389 |  |  | 90,990 |  |  |
Purchased HELOC loans |  | 3,262 |  |  | 3,871 |  |  |
Consumer installment: |  |  |  |  |  |
Originated indirect paper |  | 10,236 |  |  | 15,971 |  |  |
Other Consumer |  | 7,150 |  |  | 8,874 |  |  |
Total loans before SBA PPP loans |  | $ | 1,416,135 |  |  | $ | 1,308,290 |  |  |
SBA PPP loans |  | — |  |  | 8,755 |  |  |
Gross loans |  | $ | 1,416,135 |  |  | $ | 1,317,045 |  |  |
Less: |  |  |  |  |  |
Unearned net deferred fees and costs and loans in process |  | (2,585) |  |  | (2,482) |  |  |
Unamortized discount on acquired loans |  | (1,766) |  |  | (3,600) |  |  |
Allowance for loan losses |  | (17,939) |  |  | (16,913) |  |  |
Loans receivable, net |  | $ | 1,393,845 |  |  | $ | 1,294,050 |  |  |
Credit Quality/Risk Ratings: Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its loan portfolio. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant. Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio ratings are presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows: 1 through 4 - Pass. A “Pass” loan means that the condition of the borrower and the performance of the loan is satisfactory or better. 5 - Watch. A “Watch” loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future. 6 - Special Mention. A “Special Mention” loan has one or more potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future. 7 - Substandard. A “Substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 8 - Doubtful. A “Doubtful” loan has all the weaknesses inherent in a Substandard loan 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. 9 - Loss. Loans classified as “Loss” are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future. Below is a breakdown of loans by risk rating as of December 31, 2022:
|  | 1 to 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | TOTAL
Originated Loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 628,999 |  |  | $ | 5,771 |  |  | $ | 6,046 |  |  | $ | — |  |  | $ | — |  |  | $ | 640,816 |
Agricultural real estate |  | 67,248 |  |  | 549 |  |  | 1,634 |  |  | — |  |  | — |  |  | 69,431 |
Multi-family real estate |  | 205,601 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 205,601 |
Construction and land development |  | 101,681 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 101,681 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 120,882 |  |  | 5,526 |  |  | 707 |  |  | — |  |  | — |  |  | 127,115 |
Agricultural operating |  | 20,896 |  |  | 324 |  |  | 1,904 |  |  | — |  |  | — |  |  | 23,124 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  | 82,236 |  |  | — |  |  | 2,547 |  |  | — |  |  | — |  |  | 84,783 |
Purchased HELOC loans |  | 3,262 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,262 |
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |
Originated indirect paper |  | 10,190 |  |  | — |  |  | 46 |  |  | — |  |  | — |  |  | 10,236 |
Other Consumer |  | 6,878 |  |  | — |  |  | 16 |  |  | — |  |  | — |  |  | 6,894 |
Total originated loans before SBA PPP loans |  | 1,247,873 |  |  | 12,170 |  |  | 12,900 |  |  | — |  |  | — |  |  | 1,272,943 |
SBA PPP loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total originated loans |  | $ | 1,247,873 |  |  | $ | 12,170 |  |  | $ | 12,900 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,272,943 |
Acquired Loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 83,659 |  |  | $ | — |  |  | $ | 1,496 |  |  | $ | — |  |  | $ | — |  |  | $ | 85,155 |
Agricultural real estate |  | 16,967 |  |  | — |  |  | 1,510 |  |  | — |  |  | — |  |  | 18,477 |
Multi-family real estate |  | 3,307 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,307 |
Construction and land development |  | 704 |  |  | — |  |  | 107 |  |  | — |  |  | — |  |  | 811 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 8,866 |  |  | — |  |  | 32 |  |  | — |  |  | — |  |  | 8,898 |
Agricultural operating |  | 5,522 |  |  | — |  |  | 160 |  |  | — |  |  | — |  |  | 5,682 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  | 19,494 |  |  | — |  |  | 1,112 |  |  | — |  |  | — |  |  | 20,606 |
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |
Other Consumer |  | 254 |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | 256 |
Total acquired loans |  | $ | 138,773 |  |  | $ | — |  |  | $ | 4,419 |  |  | $ | — |  |  | $ | — |  |  | $ | 143,192 |
Total Loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 712,658 |  |  | $ | 5,771 |  |  | $ | 7,542 |  |  | $ | — |  |  | $ | — |  |  | $ | 725,971 |
Agricultural real estate |  | 84,215 |  |  | 549 |  |  | 3,144 |  |  | — |  |  | — |  |  | 87,908 |
Multi-family real estate |  | 208,908 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 208,908 |
Construction and land development |  | 102,385 |  |  | — |  |  | 107 |  |  | — |  |  | — |  |  | 102,492 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 129,748 |  |  | 5,526 |  |  | 739 |  |  | — |  |  | — |  |  | 136,013 |
Agricultural operating |  | 26,418 |  |  | 324 |  |  | 2,064 |  |  | — |  |  | — |  |  | 28,806 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  | 101,730 |  |  | — |  |  | 3,659 |  |  | — |  |  | — |  |  | 105,389 |
Purchased HELOC loans |  | 3,262 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,262 |
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |
Originated indirect paper |  | 10,190 |  |  | — |  |  | 46 |  |  | — |  |  | — |  |  | 10,236 |
Other Consumer |  | 7,132 |  |  | — |  |  | 18 |  |  | — |  |  | — |  |  | 7,150 |
Gross loans before SBA PPP loans |  | $ | 1,386,646 |  |  | $ | 12,170 |  |  | $ | 17,319 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,416,135 |
SBA PPP loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Gross loans |  | $ | 1,386,646 |  |  | $ | 12,170 |  |  | $ | 17,319 |  |  | $ | — |  |  | $ | — |  |  | 1,416,135 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Unearned net deferred fees and costs and loans in process |  |  |  |  |  |  |  |  |  |  |  | (2,585) |
Unamortized discount on acquired loans |  |  |  |  |  |  |  |  |  |  |  | (1,766) |
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  | (17,939) |
Loans receivable, net |  |  |  |  |  |  |  |  |  |  |  | $ | 1,393,845 |
Below is a breakdown of loans by risk rating as of December 31, 2021:
|  | 1 to 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | TOTAL
Originated Loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 572,724 |  |  | $ | 667 |  |  | $ | 5,004 |  |  | $ | — |  |  | $ | — |  |  | $ | 578,395 |
Agricultural real estate |  | 50,834 |  |  | 1,267 |  |  | 271 |  |  | — |  |  | — |  |  | 52,372 |
Multi-family real estate |  | 173,760 |  |  | 290 |  |  | — |  |  | — |  |  | — |  |  | 174,050 |
Construction and land development |  | 75,146 |  |  | — |  |  | 3,467 |  |  | — |  |  | — |  |  | 78,613 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 107,798 |  |  | 57 |  |  | 82 |  |  | — |  |  | — |  |  | 107,937 |
Agricultural operating |  | 23,935 |  |  | 764 |  |  | 1,503 |  |  | — |  |  | — |  |  | 26,202 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  | 60,754 |  |  | — |  |  | 3,101 |  |  | — |  |  | — |  |  | 63,855 |
Purchased HELOC loans |  | 3,706 |  |  | — |  |  | 165 |  |  | — |  |  | — |  |  | 3,871 |
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |
Originated indirect paper |  | 15,818 |  |  | — |  |  | 153 |  |  | — |  |  | — |  |  | 15,971 |
Other Consumer |  | 8,404 |  |  | — |  |  | 69 |  |  | — |  |  | — |  |  | 8,473 |
Total originated loans before SBA PPP loans |  | 1,092,879 |  |  | 3,045 |  |  | 13,815 |  |  | — |  |  | — |  |  | 1,109,739 |
SBA PPP loans |  | 8,755 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,755 |
Total originated loans |  | $ | 1,101,634 |  |  | $ | 3,045 |  |  | $ | 13,815 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,118,494 |
Acquired Loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 116,839 |  |  | $ | 1,314 |  |  | $ | 1,917 |  |  | $ | — |  |  | $ | — |  |  | $ | 120,070 |
Agricultural real estate |  | 21,051 |  |  | — |  |  | 5,072 |  |  | — |  |  | — |  |  | 26,123 |
Multi-family real estate |  | 4,299 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,299 |
Construction and land development |  | 735 |  |  | 172 |  |  | — |  |  | — |  |  | — |  |  | 907 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 13,931 |  |  | 5 |  |  | 294 |  |  | — |  |  | — |  |  | 14,230 |
Agricultural operating |  | 4,936 |  |  | — |  |  | 450 |  |  | — |  |  | — |  |  | 5,386 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  | 25,869 |  |  | — |  |  | 1,266 |  |  | — |  |  | — |  |  | 27,135 |
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |
Other Consumer |  | 398 |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | 401 |
Total acquired loans |  | $ | 188,058 |  |  | $ | 1,491 |  |  | $ | 9,002 |  |  | $ | — |  |  | $ | — |  |  | $ | 198,551 |
Total Loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 689,563 |  |  | $ | 1,981 |  |  | $ | 6,921 |  |  | $ | — |  |  | $ | — |  |  | $ | 698,465 |
Agricultural real estate |  | 71,885 |  |  | 1,267 |  |  | 5,343 |  |  | — |  |  | — |  |  | 78,495 |
Multi-family real estate |  | 178,059 |  |  | 290 |  |  | — |  |  | — |  |  | — |  |  | 178,349 |
Construction and land development |  | 75,881 |  |  | 172 |  |  | 3,467 |  |  | — |  |  | — |  |  | 79,520 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | 121,729 |  |  | 62 |  |  | 376 |  |  | — |  |  | — |  |  | 122,167 |
Agricultural operating |  | 28,871 |  |  | 764 |  |  | 1,953 |  |  | — |  |  | — |  |  | 31,588 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  | 86,623 |  |  | — |  |  | 4,367 |  |  | — |  |  | — |  |  | 90,990 |
Purchased HELOC loans |  | 3,706 |  |  | — |  |  | 165 |  |  | — |  |  | — |  |  | 3,871 |
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |
Originated indirect paper |  | 15,818 |  |  | — |  |  | 153 |  |  | — |  |  | — |  |  | 15,971 |
Other Consumer |  | 8,802 |  |  | — |  |  | 72 |  |  | — |  |  | — |  |  | 8,874 |
Gross loans before SBA PPP loans |  | $ | 1,280,937 |  |  | $ | 4,536 |  |  | $ | 22,817 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,308,290 |
SBA PPP loans |  | 8,755 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,755 |
Gross loans |  | $ | 1,289,692 |  |  | $ | 4,536 |  |  | $ | 22,817 |  |  | $ | — |  |  | $ | — |  |  | 1,317,045 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Unearned net deferred fees and costs and loans in process |  |  |  |  |  |  |  |  |  |  |  | (2,482) |
Unamortized discount on acquired loans |  |  |  |  |  |  |  |  |  |  |  | (3,600) |
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  | (16,913) |
Loans receivable, net |  |  |  |  |  |  |  |  |  |  |  | $ | 1,294,050 |
Certain directors and executive officers of the Company are defined as related parties. These related parties, including their immediate families and companies in which they are principal owners, were loan customers of the Bank during the twelve months ended December 31, 2022 and December 31, 2021. A summary of the changes in those loans is as follows:
|  | Twelve months ended |  | Twelve months ended |  |
|  | December 31, 2022 |  | December 31, 2021 |  |
Balance—beginning of period |  | $ | 32,423 |  |  | $ | 26,483 |  |  |
New loan originations |  | 7,994 |  |  | 14,992 |  |  |
Repayments |  | (2,007) |  |  | (9,052) |  |  |
Balance—end of period |  | $ | 38,410 |  |  | $ | 32,423 |  |  |
Available and unused lines of credit |  | $ | — |  |  | $ | 75 |  |  |
Allowance for Loan Losses—The ALL represents management’s estimate of probable and inherent credit losses in the Bank’s loan portfolio. Estimating the amount of the ALL requires the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may be susceptible to significant change. There are many factors affecting the ALL; some are quantitative, while others require qualitative judgment. The process for determining the ALL (which management believes adequately considers potential factors which result in probable credit losses), includes subjective elements and, therefore, may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provision for loan losses could be required that could adversely affect the Company’s earnings or financial position in future periods. Allocations of the ALL may be made for specific loans but the entire ALL is available for any loan that, in management’s judgment, should be charged-off or for which an actual loss is realized. As an integral part of their examination process, various regulatory agencies also review the Bank’s ALL. Such agencies may require that changes in the ALL be recognized when such regulators’ credit evaluations differ from those of our management based on information available to the regulators at the time of their examinations. Changes in the ALL by loan type for the periods presented below were as follows:
| Commercial/Agricultural Real Estate |  | C&I/Agricultural operating |  | Residential Mortgage |  | Consumer Installment |  | Unallocated |  | Total
Twelve months ended December 31, 2022: |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses: |  |  |  |  |  |  |  |  |  |  |
Beginning balance, January 1, 2022 | $ | 12,354 |  |  | $ | 1,959 |  |  | $ | 518 |  |  | $ | 225 |  |  | $ | 774 |  |  | $ | 15,830 |
Charge-offs | (157) |  |  | (310) |  |  | (35) |  |  | (45) |  |  | — |  |  | (547) |
Recoveries | 74 |  |  | 35 |  |  | 2 |  |  | 50 |  |  | — |  |  | 161 |
Provision | 1,280 |  |  | 571 |  |  | 89 |  |  | (109) |  |  | 34 |  |  | 1,865 |
Total Allowance on originated loans | 13,551 |  |  | 2,255 |  |  | 574 |  |  | 121 |  |  | 808 |  |  | 17,309 |
Other acquired loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance, January 1, 2022 | 856 |  |  | 69 |  |  | 130 |  |  | 28 |  |  | — |  |  | 1,083 |
Charge-offs | (48) |  |  | (36) |  |  | (33) |  |  | (3) |  |  | — |  |  | (120) |
Recoveries | 28 |  |  | 1 |  |  | 27 |  |  | 1 |  |  | — |  |  | 57 |
Provision | (302) |  |  | 29 |  |  | (99) |  |  | (18) |  |  | — |  |  | (390) |
Total allowance on other acquired loans | 534 |  |  | 63 |  |  | 25 |  |  | 8 |  |  | — |  |  | 630 |
Total allowance on acquired loans | 534 |  |  | 63 |  |  | 25 |  |  | 8 |  |  | — |  |  | 630 |
Ending Balance, December 31, 2022 | $ | 14,085 |  |  | $ | 2,318 |  |  | $ | 599 |  |  | $ | 129 |  |  | $ | 808 |  |  | $ | 17,939 |
Allowance for Loan Losses at December 31, 2022: |  |  |  |  |  |  |  |  |  |  |
Amount of allowance for loan losses arising from loans individually evaluated for impairment | $ | 519 |  |  | $ | 249 |  |  | $ | 48 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 826 |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | $ | 13,566 |  |  | $ | 2,069 |  |  | $ | 551 |  |  | $ | 119 |  |  | $ | 808 |  |  | $ | 17,113 |
Loans Receivable as of December 31, 2022: |  |  |  |  |  |  |  |  |  |  |
Ending balance of originated loans | $ | 1,017,529 |  |  | $ | 150,239 |  |  | $ | 88,045 |  |  | $ | 17,130 |  |  | $ | — |  |  | $ | 1,272,943 |
Ending balance of purchased credit-impaired loans | 5,748 |  |  | 362 |  |  | 890 |  |  | — |  |  | — |  |  | 7,000 |
Ending balance of other acquired loans | 102,002 |  |  | 14,218 |  |  | 19,716 |  |  | 256 |  |  | — |  |  | 136,192 |
Ending balance of loans | $ | 1,125,279 |  |  | $ | 164,819 |  |  | $ | 108,651 |  |  | $ | 17,386 |  |  | $ | — |  |  | $ | 1,416,135 |
Ending balance: individually evaluated for impairment | $ | 16,874 |  |  | $ | 3,292 |  |  | $ | 5,998 |  |  | $ | 755 |  |  | $ | — |  |  | $ | 26,919 |
Ending balance: collectively evaluated for impairment | $ | 1,108,405 |  |  | $ | 161,527 |  |  | $ | 102,653 |  |  | $ | 16,631 |  |  | $ | — |  |  | $ | 1,389,216 |
| Commercial/Agricultural Real Estate |  | C&I/Agricultural operating |  | Residential Mortgage |  | Consumer Installment |  | Unallocated |  | Total
Twelve months ended December 31, 2021: |  |  |  |  |  |  |  |  |  |  |
Allowance for Loan Losses: |  |  |  |  |  |  |  |  |  |  |
Beginning balance, January 1, 2021 | $ | 10,271 |  |  | $ | 2,112 |  |  | $ | 1,041 |  |  | $ | 489 |  |  | $ | 906 |  |  | $ | 14,819 |
Charge-offs | (51) |  |  | — |  |  | — |  |  | (54) |  |  | — |  |  | (105) |
Recoveries | 14 |  |  | 110 |  |  | 9 |  |  | 41 |  |  | — |  |  | 174 |
Provision | 2,120 |  |  | (263) |  |  | (532) |  |  | (251) |  |  | (132) |  |  | 942 |
Total Allowance on originated loans | 12,354 |  |  | 1,959 |  |  | 518 |  |  | 225 |  |  | 774 |  |  | 15,830 |
Other acquired loans: |  |  |  |  |  |  |  |  |  |  |
Beginning balance, January 1, 2021 | 1,684 |  |  | 141 |  |  | 335 |  |  | 64 |  |  | — |  |  | 2,224 |
Charge-offs | (200) |  |  | (7) |  |  | — |  |  | (27) |  |  | — |  |  | (234) |
Recoveries | 14 |  |  | 13 |  |  | 4 |  |  | 4 |  |  | — |  |  | 35 |
Provision | (642) |  |  | (78) |  |  | (209) |  |  | (13) |  |  | — |  |  | (942) |
Total Allowance on other acquired loans | 856 |  |  | 69 |  |  | 130 |  |  | 28 |  |  | — |  |  | 1,083 |
Total Allowance on acquired loans | 856 |  |  | 69 |  |  | 130 |  |  | 28 |  |  | — |  |  | 1,083 |
Ending balance, December 31, 2021 | $ | 13,210 |  |  | $ | 2,028 |  |  | $ | 648 |  |  | $ | 253 |  |  | $ | 774 |  |  | $ | 16,913 |
Allowance for Loan Losses at December 31, 2021: |  |  |  |  |  |  |  |  |  |  |
Amount of allowance for loan losses arising from loans individually evaluated for impairment | $ | 797 |  |  | $ | 99 |  |  | $ | 113 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,009 |
Amount of allowance for loan losses arising from loans collectively evaluated for impairment | $ | 12,413 |  |  | $ | 1,929 |  |  | $ | 535 |  |  | $ | 253 |  |  | $ | 774 |  |  | $ | 15,904 |
Loans Receivable as of December 31, 2021: |  |  |  |  |  |  |  |  |  |  |
Ending balance of originated loans | $ | 883,430 |  |  | $ | 142,894 |  |  | $ | 67,726 |  |  | $ | 24,444 |  |  | $ | — |  |  | $ | 1,118,494 |
Ending balance of purchased credit-impaired loans | 9,060 |  |  | 1,101 |  |  | 1,044 |  |  | — |  |  | — |  |  | 11,205 |
Ending balance of other acquired loans | 142,339 |  |  | 18,515 |  |  | 26,091 |  |  | 401 |  |  | — |  |  | 187,346 |
Ending balance of loans | $ | 1,034,829 |  |  | $ | 162,510 |  |  | $ | 94,861 |  |  | $ | 24,845 |  |  | $ | — |  |  | $ | 1,317,045 |
Ending balance: individually evaluated for impairment | $ | 21,792 |  |  | $ | 3,337 |  |  | $ | 7,007 |  |  | $ | 257 |  |  | $ | — |  |  | $ | 32,393 |
Ending balance: collectively evaluated for impairment | $ | 1,013,037 |  |  | $ | 159,173 |  |  | $ | 87,854 |  |  | $ | 24,588 |  |  | $ | — |  |  | $ | 1,284,652 |
Loans receivable by loan type as of the end of the periods shown below were as follows:
| Commercial/Agricultural Real Estate Loans |  | C&I/Agricultural operating |  | Residential Mortgage |  | Consumer Installment |  | Totals
| Dec 31, |  | Dec 31, |  |  |  | Dec 31, |  | Dec 31, |  |  |  | Dec 31, |  | Dec 31, |  |  |  | Dec 31, |  | Dec 31, |  |  |  | Dec 31, |  | Dec 31, |  |
| 2022 |  | 2021 |  |  |  | 2022 |  | 2021 |  |  |  | 2022 |  | 2021 |  |  |  | 2022 |  | 2021 |  |  |  | 2022 |  | 2021 |  |
Performing loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing TDR loans | $ | 1,336 |  |  | $ | 4,618 |  |  |  |  | $ | 960 |  |  | $ | 649 |  |  |  |  | $ | 2,875 |  |  | $ | 2,681 |  |  |  |  | $ | — |  |  | $ | 36 |  |  |  |  | $ | 5,171 |  |  | $ | 7,984 |  |  |
Performing loans other | 1,115,465 |  |  | 1,021,346 |  |  |  |  | 162,417 |  |  | 160,570 |  |  |  |  | 104,287 |  |  | 90,591 |  |  |  |  | 17,345 |  |  | 24,729 |  |  |  |  | 1,399,514 |  |  | 1,297,236 |  |  |
Total performing loans | 1,116,801 |  |  | 1,025,964 |  |  |  |  | 163,377 |  |  | 161,219 |  |  |  |  | 107,162 |  |  | 93,272 |  |  |  |  | 17,345 |  |  | 24,765 |  |  |  |  | 1,404,685 |  |  | 1,305,220 |  |  |
Nonperforming loans (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming TDR loans | 1,878 |  |  | 3,389 |  |  |  |  | 391 |  |  | 554 |  |  |  |  | 348 |  |  | 593 |  |  |  |  | — |  |  | 3 |  |  |  |  | 2,617 |  |  | 4,539 |  |  |
Nonperforming loans other | 6,600 |  |  | 5,476 |  |  |  |  | 1,051 |  |  | 737 |  |  |  |  | 1,141 |  |  | 996 |  |  |  |  | 41 |  |  | 77 |  |  |  |  | 8,833 |  |  | 7,286 |  |  |
Total nonperforming loans | 8,478 |  |  | 8,865 |  |  |  |  | 1,442 |  |  | 1,291 |  |  |  |  | 1,489 |  |  | 1,589 |  |  |  |  | 41 |  |  | 80 |  |  |  |  | 11,450 |  |  | 11,825 |  |  |
Total loans | $ | 1,125,279 |  |  | $ | 1,034,829 |  |  |  |  | $ | 164,819 |  |  | $ | 162,510 |  |  |  |  | $ | 108,651 |  |  | $ | 94,861 |  |  |  |  | $ | 17,386 |  |  | $ | 24,845 |  |  |  |  | $ | 1,416,135 |  |  | $ | 1,317,045 |  |  |
(1)Nonperforming loans are either 90+ days past due or nonaccrual. An aging analysis of the Company’s commercial/agricultural real estate and non-real estate, consumer real estate and non-real estate and purchased third party loans as of December 31, 2022 and 2021, respectively, was as follows:
| 30-59 Days Past Due and Accruing |  | 60-89 Days Past Due and Accruing |  | Greater Than 89 Days Past Due and Accruing |  | Total Past Due Accruing |  | Nonaccrual Loans |  |  |  | Total Past Due Accruing and Nonaccrual Loans |  | Current |  | Total Loans
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | $ | 202 |  |  | $ | 88 |  |  | $ | — |  |  | $ | 290 |  |  | $ | 5,736 |  |  |  |  | $ | 6,026 |  |  | $ | 719,945 |  |  | $ | 725,971 |
Agricultural real estate | 4,992 |  |  | — |  |  | — |  |  | 4,992 |  |  | 2,742 |  |  |  |  | 7,734 |  |  | 80,174 |  |  | 87,908 |
Multi-family real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 208,908 |  |  | 208,908 |
Construction and land development | 3,975 |  |  | — |  |  | — |  |  | 3,975 |  |  | — |  |  |  |  | 3,975 |  |  | 98,517 |  |  | 102,492 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | — |  |  | 26 |  |  | — |  |  | 26 |  |  | 552 |  |  |  |  | 578 |  |  | 135,435 |  |  | 136,013 |
SBA PPP loans | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |
Agricultural operating | 826 |  |  | — |  |  | — |  |  | 826 |  |  | 890 |  |  |  |  | 1,716 |  |  | 27,090 |  |  | 28,806 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 767 |  |  | 479 |  |  | 236 |  |  | 1,482 |  |  | 1,253 |  |  |  |  | 2,735 |  |  | 102,654 |  |  | 105,389 |
Purchased HELOC loans | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 3,262 |  |  | 3,262 |
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated indirect paper | 15 |  |  | — |  |  | — |  |  | 15 |  |  | 27 |  |  |  |  | 42 |  |  | 10,194 |  |  | 10,236 |
Other Consumer | 39 |  |  | 2 |  |  | 10 |  |  | 51 |  |  | 4 |  |  |  |  | 55 |  |  | 7,095 |  |  | 7,150 |
Total | $ | 10,816 |  |  | $ | 595 |  |  | $ | 246 |  |  | $ | 11,657 |  |  | $ | 11,204 |  |  |  |  | $ | 22,861 |  |  | $ | 1,393,274 |  |  | $ | 1,416,135 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | $ | 36 |  |  | $ | — |  |  | $ | — |  |  | $ | 36 |  |  | $ | 5,374 |  |  |  |  | $ | 5,410 |  |  | $ | 693,055 |  |  | $ | 698,465 |
Agricultural real estate | 498 |  |  | 4 |  |  | — |  |  | 502 |  |  | 3,490 |  |  |  |  | 3,992 |  |  | 74,503 |  |  | 78,495 |
Multi-family real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 178,349 |  |  | 178,349 |
Construction and land development | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 79,520 |  |  | 79,520 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | — |  |  | 32 |  |  | — |  |  | 32 |  |  | 298 |  |  |  |  | 330 |  |  | 121,837 |  |  | 122,167 |
SBA PPP loans | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 8,755 |  | 8,755 |
Agricultural operating | 1,123 |  |  | — |  |  | — |  |  | 1,123 |  |  | 993 |  |  |  |  | 2,116 |  |  | 29,472 |  | 31,588 |
Residential mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 1,471 |  |  | 487 |  |  | 156 |  |  | 2,114 |  |  | 1,268 |  |  |  |  | 3,382 |  |  | 87,608 |  | 90,990
Purchased HELOC loans | 117 |  |  | — |  |  | — |  |  | 117 |  |  | 165 |  |  |  |  | 282 |  |  | 3,589 |  | 3,871
Consumer installment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated indirect paper | 38 |  |  | 27 |  |  | — |  |  | 65 |  |  | 55 |  |  |  |  | 120 |  |  | 15,851 |  | 15,971
Other Consumer | 58 |  |  | 10 |  |  | 4 |  |  | 72 |  |  | 22 |  |  |  |  | 94 |  |  | 8,780 |  | 8,874
Total | $ | 3,341 |  |  | $ | 560 |  |  | $ | 160 |  |  | $ | 4,061 |  |  | $ | 11,665 |  |  |  |  | $ | 15,726 |  |  | $ | 1,301,319 |  |  | $ | 1,317,045 |
At December 31, 2022, the Company individually evaluated loans for impairment with a recorded investment of $26,823, consisting of (1) $7,000 PCI loans, with a carrying amount of $6,904; (2) $7,018 TDR loans, net of TDR PCI loans; and (3) $12,901 of substandard non-TDR loans, non-PCI loans. The $26,823 total of loans individually evaluated for impairment includes $5,171 of performing TDR loans. At December 31, 2021, the Company individually evaluated loans for impairment with a recorded investment of $31,740, consisting of (1) $11,205 PCI loans, with a carrying amount of $10,552; (2) $9,860 TDR loans, net of TDR PCI loans; and (3) $11,328 of substandard non-TDR loans, non-PCI loans. The $31,740 total of loans individually evaluated for impairment includes $7,984 of performing TDR loans. A loan is identified as impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Performing TDRs consist of loans that have been modified and are performing in accordance with the modified terms for a sufficient length of time, generally six months, or loans that were modified on a proactive basis. A summary of loans evaluated for impairment as of December 31, 2022 was as follows:
| Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Average Recorded Investment |  | Interest Income Recognized
December 31, 2022 |  |  |  |  |  |  |  |  |
With No Related Allowance Recorded: |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate | $ | 9,741 |  |  | $ | 9,766 |  |  | $ | — |  |  | $ | 13,657 |  |  | $ | 549 |
C&I/Agricultural operating | 2,744 |  |  | 2,754 |  |  | — |  |  | 4,467 |  |  | 200 |
Residential mortgage | 5,846 |  |  | 5,907 |  |  | — |  |  | 6,304 |  |  | 276 |
Consumer installment | 745 |  |  | 745 |  |  | — |  |  | 307 |  |  | 5 |
Total | $ | 19,076 |  |  | $ | 19,172 |  |  | $ | — |  |  | $ | 24,735 |  |  | $ | 1,030 |
With An Allowance Recorded: |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate | $ | 7,108 |  |  | $ | 7,108 |  |  | $ | 519 |  |  | $ | 6,028 |  |  | $ | 273 |
C&I/Agricultural operating | 538 |  |  | 538 |  |  | 249 |  |  | 273 |  |  | 48 |
Residential mortgage | 91 |  |  | 91 |  |  | 48 |  |  | 298 |  |  | 65 |
Consumer installment | 10 |  |  | 10 |  |  | 10 |  |  | 2 |  |  | 2 |
Total | $ | 7,747 |  |  | $ | 7,747 |  |  | $ | 826 |  |  | $ | 6,601 |  |  | $ | 388 |
December 31, 2022 Totals |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate | $ | 16,849 |  |  | $ | 16,874 |  |  | $ | 519 |  |  | $ | 19,685 |  |  | $ | 822 |
C&I/Agricultural operating | 3,282 |  |  | 3,292 |  |  | 249 |  |  | 4,741 |  |  | 248 |
Residential mortgage | 5,937 |  |  | 5,998 |  |  | 48 |  |  | 6,603 |  |  | 341 |
Consumer installment | 755 |  |  | 755 |  |  | 10 |  |  | 310 |  |  | 7 |
Total | $ | 26,823 |  |  | $ | 26,919 |  |  | $ | 826 |  |  | $ | 31,336 |  |  | $ | 1,418 |
At December 31, 2022, the Company had six residential real estate loans, secured by residential real estate properties, for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction, with a recorded investment of $258. At December 31, 2022, the Company had three commercial real estate loans, secured by commercial and agricultural real estate properties, for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction, with a recorded investment of $6,294. A summary of loans evaluated for impairment as of December 31, 2021 was as follows:
| Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Average Recorded Investment |  | Interest Income Recognized
December 31, 2021 |  |  |  |  |  |  |  |  |
With No Related Allowance Recorded: |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate | $ | 15,521 |  |  | $ | 15,905 |  |  | $ | — |  |  | $ | 19,412 |  |  | $ | 964 |
C&I/Agricultural operating | 3,153 |  |  | 3,337 |  |  | — |  |  | 4,622 |  |  | 146 |
Residential mortgage | 6,221 |  |  | 6,306 |  |  | — |  |  | 7,316 |  |  | 316 |
Consumer installment | 256 |  |  | 256 |  |  | — |  |  | 306 |  |  | 85 |
Total | $ | 25,151 |  |  | $ | 25,804 |  |  | $ | — |  |  | $ | 31,656 |  |  | $ | 1,511 |
With An Allowance Recorded: |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate | $ | 5,887 |  |  | $ | 5,887 |  |  | $ | 797 |  |  | $ | 4,089 |  |  | $ | 62 |
C&I/Agricultural operating | — |  |  | — |  |  | 99 |  |  | 391 |  |  | 84 |
Residential mortgage | 701 |  |  | 701 |  |  | 113 |  |  | 890 |  |  | 17 |
Consumer installment | 1 |  |  | 1 |  |  | — |  |  | 2 |  |  | — |
Total | $ | 6,589 |  |  | $ | 6,589 |  |  | $ | 1,009 |  |  | $ | 5,372 |  |  | $ | 163 |
December 31, 2021 Totals |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate | $ | 21,408 |  |  | $ | 21,792 |  |  | $ | 797 |  |  | $ | 23,501 |  |  | $ | 1,026 |
C&I/Agricultural operating | 3,153 |  |  | 3,337 |  |  | 99 |  |  | 5,013 |  |  | 230 |
Residential mortgage | 6,922 |  |  | 7,007 |  |  | 113 |  |  | 8,206 |  |  | 333 |
Consumer installment | 257 |  |  | 257 |  |  | — |  |  | 308 |  |  | 85 |
Total | $ | 31,740 |  |  | $ | 32,393 |  |  | $ | 1,009 |  |  | $ | 37,028 |  |  | $ | 1,674 |
Troubled Debt Restructuring – A TDR includes a loan modification where a borrower is experiencing financial difficulty, and the Bank grants a concession to that borrower that the Bank would not otherwise consider, except for the borrower’s financial difficulties. Concessions may include: extension of the loan’s term, renewals of existing balloon loans, reductions in interest rates and consolidating existing Bank loans at modified terms. A TDR may be either on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. If a TDR is placed on nonaccrual status, it remains there until a sufficient period of performance under the restructured terms has occurred at which time it is returned to accrual status. There was one accruing, delinquent TDR, greater than 60 days past due, with a recorded investment of $15 at December 31, 2022, compared to one accruing, delinquent TDR, greater than 60 days past due, with a recorded investment of $4 at December 31, 2021. Following is a summary of TDR loans by accrual status as of December 31, 2022 and December 31, 2021.
|  | December 31 |  | December 31 |  |
|  | 2022 |  | 2021 |  |
Troubled debt restructure loans: |  |  |  |  |  |
Accrual status |  | $ | 5,171 |  |  | $ | 7,984 |  |  |
Non-accrual status |  | 2,617 |  |  | 4,539 |  |  |
Total |  | $ | 7,788 |  |  | $ | 12,523 |  |  |
There was one TDR commitment totaling $26 meeting our TDR criteria as of December 31, 2022 and there were no TDR commitments meeting our TDR criteria as of December 31, 2021. There were unused lines of credit totaling $484 and $10 meeting our TDR criteria as of December 31, 2022 and December 31, 2021, respectively. The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the years ended December 31, 2022 and December 31, 2021:
|  | Number of Contracts |  | Modified Rate |  | Modified Payment |  | Modified Under- writing |  | Other |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment |  | Specific Reserve
Twelve months ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TDRs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate |  | 7 |  |  | $ | 1,241 |  |  | $ | — |  |  | $ | 1,964 |  |  | $ | — |  |  | $ | 3,205 |  |  | $ | 3,205 |  |  | $ | — |
C&I/Agricultural operating |  | 5 |  |  | 1,424 |  |  | — |  |  | 736 |  |  | — |  |  | 2,160 |  |  | 2,160 |  |  | — |
Residential mortgage |  | 11 |  |  | 116 |  |  | 147 |  |  | 507 |  |  | — |  |  | 770 |  |  | 770 |  |  | — |
Consumer installment |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Totals |  | 23 |  |  | $ | 2,781 |  |  | $ | 147 |  |  | $ | 3,207 |  |  | $ | — |  |  | $ | 6,135 |  |  | $ | 6,135 |  |  | $ | — |
|  | Number of Contracts |  | Modified Rate |  | Modified Payment |  | Modified Under- writing |  | Other |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment |  | Specific Reserve
Twelve months ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TDRs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate |  | 3 |  |  | $ | 39 |  |  | $ | 81 |  |  | $ | — |  |  | $ | — |  |  | $ | 120 |  |  | $ | 120 |  |  | $ | — |
C&I/Agricultural operating |  | 1 |  |  | — |  |  | — |  |  | 240 |  |  | — |  |  | 240 |  |  | 240 |  |  | — |
Residential mortgage |  | 8 |  |  | 252 |  |  | 295 |  |  | 202 |  |  | — |  |  | 749 |  |  | 749 |  |  | — |
Consumer installment |  | 3 |  |  | 6 |  |  | — |  |  | 18 |  |  | — |  |  | 24 |  |  | 24 |  |  | — |
Totals |  | 15 |  |  | $ | 297 |  |  | $ | 376 |  |  | $ | 460 |  |  | $ | — |  |  | $ | 1,133 |  |  | $ | 1,133 |  |  | $ | — |
A summary of loans by loan class modified in a troubled debt restructuring as of December 31, 2022 and December 31, 2021:
|  | December 31, 2022 |  | December 31, 2021 |  |
|  | Number of Modifications |  | Recorded Investment |  | Number of Modifications |  | Recorded Investment |  |  |  |
Troubled debt restructurings: |  |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate |  | 14 |  |  | $ | 3,214 |  |  | 19 |  |  | $ | 8,007 |  |  |  |  |
C&I/Agricultural operating |  | 8 |  |  | 1,351 |  |  | 7 |  |  | 1,203 |  |  |  |  |
Residential mortgage |  | 45 |  |  | 3,223 |  |  | 43 |  |  | 3,274 |  |  |  |  |
Consumer installment |  | — |  |  | — |  |  | 7 |  |  | 39 |  |  |  |  |
Total loans |  | 67 |  |  | $ | 7,788 |  |  | 76 |  |  | $ | 12,523 |  |  |  |  |
The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the years ended December 31, 2022 and December 31, 2021, as well as the recorded investment in these restructured loans as of December 31, 2022 and December 31, 2021:
| December 31, 2022 |  | December 31, 2021 |  |
| Number of Modifications |  | Recorded Investment |  | Number of Modifications |  | Recorded Investment |  |  |  |
Troubled debt restructurings: |  |  |  |  |  |  |  |  |  |  |
Commercial/Agricultural real estate | — |  |  | $ | — |  |  | — |  |  | $ | — |  |  |  |  |
C&I/Agricultural operating | 1 |  |  | 231 |  |  | — |  |  | — |  |  |  |  |
Residential mortgage | 2 |  |  | 40 |  |  | — |  |  | — |  |  |  |  |
Consumer installment | — |  |  | — |  |  | 1 |  |  | 3 |  |  |  |  |
Total troubled debt restructurings | 3 |  |  | $ | 271 |  |  | 1 |  |  | $ | 3 |  |  |  |  |
All acquired loans were initially recorded at fair value at the acquisition date. The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:
| December 31, 2022 |  | December 31, 2021
Accountable for under ASC 310-30 (PCI loans) |  |  |
Outstanding balance | $ | 7,000 |  |  | $ | 11,205 |
Carrying amount | $ | 6,904 |  |  | $ | 10,552 |
Accountable for under ASC 310-20 (non-PCI loans) |  |  |
Outstanding balance | $ | 136,192 |  |  | $ | 187,346 |
Carrying amount | $ | 134,522 |  |  | $ | 184,399 |
Total acquired loans |  |  |
Outstanding balance | $ | 143,192 |  |  | $ | 198,551 |
Carrying amount | $ | 141,426 |  |  | $ | 194,951 |
The table below shows scheduled accretion by year for the accretable difference recognized due to fair value purchase accounting on recent whole bank acquisitions. In addition, the table below includes $1,165 of accretable discount from purchased impaired loans with the original non-accretable discount transferred to accretable discount. The accretion on this balance is scheduled to be approximately $80 in 2023; however, large balance payoffs, as seen in 2022, 2021 and 2020, would accelerate this accretion and lower future years accretion.
Fiscal years ending December 31, |  | Purchase Accounting Accretable Discount |  |  |  |
2023 |  | $ | 363 |  |  |  |  |
2024 |  | 215 |  |  |  |  |
2025 |  | 180 |  |  |  |  |
2026 |  | 84 |  |  |  |  |
2027 |  | 77 |  |  |  |  |
Thereafter |  | 751 |  |  |  |  |
Total |  | $ | 1,670 |  |  |  |  |
The following table provides changes in non-accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:
| December 31, 2022 |  | December 31, 2021
Balance at beginning of period | $ | 653 |  |  | $ | 1,087 |
Additions to non-accretable difference for acquired purchased credit impaired loans | — |  |  | — |
Non-accretable difference realized as interest from payoffs of purchased credit impaired loans | (239) |  |  | (105) |
Transfers from non-accretable difference to accretable discount | (126) |  |  | (329) |
Non-accretable difference transferred to OREO due to loan foreclosure | (192) |  |  | — |
Balance at end of period | $ | 96 |  |  | $ | 653 |

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