LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Summary of Loan Portfolio by Type of Loan

The following table summarizes the Company’s loan portfolio by type of loan as of:

	September 30, 2021			December 31, 2020
Commercial and industrial	$	308,647		$	356,291
Real estate:
Construction and development		309,746			270,407
Commercial real estate		633,353			594,216
Farmland		135,413			78,508
1-4 family residential		403,403			389,096
Multi-family residential		40,810			21,701
Consumer		52,992			51,044
Agricultural		14,199			15,734
Warehouse lending(1)		71,823			89,480
Overdrafts		495			342
Total loans(2)		1,970,881			1,866,819
Net of:
Deferred loan fees, net		(1,992	)		(1,463	)
Allowance for credit losses		(30,621	)		(33,619	)
Total net loans(2)	$	1,938,268		$	1,831,737
(1) Warehouse lending is presented as a component of commercial and industrial loans on remaining tables.
(2) Excludes accrued interest receivable on loans of $5.8 million and $7.0 million as of September 30, 2021 and December 31, 2020, respectively, which is presented separately on the consolidated balance sheets.

Schedule of Allowance for Credit Losses Activity

The Company’s estimate of the allowance for credit losses (“ACL”) reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The following tables present the activity in the ACL by class of loans for the nine months ended September 30, 2021, for the year ended December 31, 2020 and for the nine months ended September 30, 2020:

For the Nine Months Ended September 30, 2021	Commercial and industrial			Construction and development			Commercial real estate			Farmland		1-4 family residential			Multi-family residential		Consumer			Agricultural			Overdrafts			Total
Allowance for credit losses:
Beginning balance	$	4,033		$	4,735		$	15,780		$	1,220	$	6,313		$	363	$	929		$	239		$	7		$	33,619
Provision for credit losses		(268	)		(774	)		(670	)		365		(559	)		213		(61	)		(73	)		127			(1,700	)
Loans charged-off		(300	)		—			(816	)		—		—			—		(113	)		—			(173	)		(1,402	)
Recoveries		15			1			11			—		—			—		32			—			45			104
Ending balance	$	3,480		$	3,962		$	14,305		$	1,585	$	5,754		$	576	$	787		$	166		$	6		$	30,621

For the Year Ended December 31, 2020	Commercial and industrial			Construction and development		Commercial real estate		Farmland		1-4 family residential			Multi-family residential			Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance, prior to adoption of ASC 326	$	2,056		$	2,378	$	6,853	$	570	$	3,125		$	409		$	602		$	197		$	12		$	16,202
Impact of adopting ASC 326		546			323		2,228		26		1,339			(50	)		72			73			(9	)		4,548
Provision for credit losses		1,398			2,034		6,698		624		1,915			4			373			(33	)		187			13,200
Loans charged-off		(68	)		—		—		—		(68	)		—			(155	)		(18	)		(234	)		(543	)
Recoveries		101			—		1		—		2			—			37			20			51			212
Ending balance	$	4,033		$	4,735	$	15,780	$	1,220	$	6,313		$	363		$	929		$	239		$	7		$	33,619

For the Nine Months Ended September 30, 2020	Commercial and industrial			Construction and development		Commercial real estate		Farmland		1-4 family residential			Multi-family residential			Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance	$	2,056		$	2,378	$	6,853	$	570	$	3,125		$	409		$	602		$	197		$	12		$	16,202
Impact of adopting ASC 326		546			323		2,228		26		1,339			(50	)		72			73			(9	)		4,548
Provision for credit losses		1,366			2,228		6,613		694		1,778			(34	)		407			59			89			13,200
Loans charged-off		(43	)		—		—		—		(59	)		—			(136	)		(18	)		(128	)		(384	)
Recoveries		93			—		1		—		2			—			30			20			45			191
Ending balance	$	4,018		$	4,929	$	15,695	$	1,290	$	6,185		$	325		$	975		$	331		$	9		$	33,757

Summary of Credit Exposure

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of September 30, 2021:

September 30, 2021	2021		2020		2019			2018			2017			Prior			Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	199,537	$	40,901	$	20,982		$	9,595		$	4,333		$	17,616		$	86,768		$	379,732
Special mention		—		96		—			—			21			—			—			117
Substandard		—		278		60			196			43			5			—			582
Nonaccrual		—		—		—			25			—			14			—			39
Total commercial and industrial loans	$	199,537	$	41,275	$	21,042		$	9,816		$	4,397		$	17,635		$	86,768		$	380,470
Charge-offs	$	—	$	—	$	(167	)	$	(67	)	$	(19	)	$	—		$	(47	)	$	(300	)
Recoveries		—		—		—			—			—			—			15			15
Current period net	$	—	$	—	$	(167	)	$	(67	)	$	(19	)	$	—		$	(32	)	$	(285	)
Construction and development:
Pass	$	153,740	$	78,121	$	29,164		$	7,149		$	16,405		$	14,347		$	8,313		$	307,239
Special mention		—		710		—			—			955			—			—			1,665
Substandard		—		—		609			3			—			—			—			612
Nonaccrual		—		—		230			—			—			—			—			230
Total construction and development loans	$	153,740	$	78,831	$	30,003		$	7,152		$	17,360		$	14,347		$	8,313		$	309,746
Charge-offs	$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—		—		—			—			—			1			—			1
Current period net	$	—	$	—	$	—		$	—		$	—		$	1		$	—		$	1
Commercial real estate:
Pass	$	100,853	$	98,665	$	80,197		$	64,919		$	44,565		$	176,005		$	14,699		$	579,903
Special mention		398		—		—			2,439			4,591			1,629			—			9,057
Substandard		—		7,040		—			10,124			13,110			13,732			—			44,006
Nonaccrual		—		60		—			73			33			221			—			387
Total commercial real estate loans	$	101,251	$	105,765	$	80,197		$	77,555		$	62,299		$	191,587		$	14,699		$	633,353
Charge-offs	$	—	$	—	$	(17	)	$	(56	)	$	(472	)	$	(271	)	$	—		$	(816	)
Recoveries		—		—		—			—			11			—			—			11
Current period net	$	—	$	—	$	(17	)	$	(56	)	$	(461	)	$	(271	)	$	—		$	(805	)
Farmland:
Pass	$	72,382	$	12,776	$	8,683		$	8,541		$	5,345		$	21,626		$	5,777		$	135,130
Special mention		—		—		—			—			—			28			—			28
Substandard		—		—		—			—			—			118			—			118
Nonaccrual		—		—		—			—			—			109			28			137
Total farmland loans	$	72,382	$	12,776	$	8,683		$	8,541		$	5,345		$	21,881		$	5,805		$	135,413
Charge-offs	$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—		—		—			—			—			—			—			—
Current period net	$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—

September 30, 2021	2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost			Total
1-4 family residential:
Pass	$	101,523		$	72,986		$	48,075		$	38,577		$	29,077		$	97,575		$	13,368		$	401,181
Special mention		—			—			—			—			—			57			—			57
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			—			184			383			254			1,344			—			2,165
Total 1-4 family residential loans	$	101,523		$	72,986		$	48,259		$	38,960		$	29,331		$	98,976		$	13,368		$	403,403
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Multi-family residential:
Pass	$	13,113		$	4,312		$	4,392		$	15,448		$	545		$	2,194		$	131		$	40,135
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			675			—			—			675
Nonaccrual		—			—			—			—			—			—			—			—
Total multi-family residential loans	$	13,113		$	4,312		$	4,392		$	15,448		$	1,220		$	2,194		$	131		$	40,810
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer and overdrafts:
Pass	$	21,949		$	14,015		$	5,654		$	5,400		$	820		$	656		$	4,838		$	53,332
Special mention		—			1			9			—			—			—			—			10
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		8			25			22			70			9			11			—			145
Total consumer loans and overdrafts	$	21,957		$	14,041		$	5,685		$	5,470		$	829		$	667		$	4,838		$	53,487
Charge-offs	$	(180	)	$	(34	)	$	(38	)	$	(32	)	$	(2	)	$	—		$	—		$	(286	)
Recoveries		45			3			—			8			2			19			—			77
Current period net	$	(135	)	$	(31	)	$	(38	)	$	(24	)	$	—		$	19		$	—		$	(209	)
Agricultural:
Pass	$	2,611		$	2,081		$	1,052		$	1,082		$	275		$	592		$	6,366		$	14,059
Special mention		—			—			—			—			20			—			—			20
Substandard		—			—			5			31			39			13			—			88
Nonaccrual		—			20			—			9			3			—			—			32
Total agricultural loans	$	2,611		$	2,101		$	1,057		$	1,122		$	337		$	605		$	6,366		$	14,199
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total loans:
Pass	$	665,708		$	323,857		$	198,199		$	150,711		$	101,365		$	330,611		$	140,260		$	1,910,711
Special mention		398			807			9			2,439			5,587			1,714			—			10,954
Substandard		—			7,318			674			10,354			13,867			13,868			—			46,081
Nonaccrual		8			105			436			560			299			1,699			28			3,135
Total loans	$	666,114		$	332,087		$	199,318		$	164,064		$	121,118		$	347,892		$	140,288		$	1,970,881
Charge-offs	$	(180	)	$	(34	)	$	(222	)	$	(155	)	$	(493	)	$	(271	)	$	(47	)	$	(1,402	)
Recoveries		45			3			—			8			13			20			15			104
Total current period net (charge-offs) recoveries	$	(135	)	$	(31	)	$	(222	)	$	(147	)	$	(480	)	$	(251	)	$	(32	)	$	(1,298	)

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2020:

December 31, 2020	2020		2019		2018			2017		2016		Prior		Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	278,687	$	30,563	$	12,860		$	4,366	$	6,131	$	16,294	$	90,074		$	438,975
Special mention		124		119		222			4,040		1,324		—		—			5,829
Substandard		—		307		540			50		43		—		—			940
Nonaccrual		—		—		13			—		14		—		—			27
Total commercial and industrial loans	$	278,811	$	30,989	$	13,635		$	8,456	$	7,512	$	16,294	$	90,074		$	445,771
Charge-offs	$	—	$	—	$	(43	)	$	—	$	—	$	—	$	(25	)	$	(68	)
Recoveries		—		—		43			—		—		14		44			101
Current period net	$	—	$	—	$	—		$	—	$	—	$	14	$	19		$	33
Construction and development:
Pass	$	118,590	$	76,926	$	26,212		$	24,524	$	7,742	$	10,507	$	3,266		$	267,767
Special mention		356		—		—			990		—		—		—			1,346
Substandard		—		609		5			—		680		—		—			1,294
Nonaccrual		—		—		—			—		—		—		—			—
Total construction and development loans	$	118,946	$	77,535	$	26,217		$	25,514	$	8,422	$	10,507	$	3,266		$	270,407
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		—		—			—
Current period net	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Commercial real estate:
Pass	$	91,819	$	80,753	$	89,542		$	72,311	$	86,946	$	123,463	$	5,890		$	550,724
Special mention		—		2,716		3,542			849		5,724		449		—			13,280
Substandard		—		—		2,010			4,913		4,445		8,240		—			19,608
Nonaccrual		—		1,140		151			4,158		4,769		386		—			10,604
Total commercial real estate loans	$	91,819	$	84,609	$	95,245		$	82,231	$	101,884	$	132,538	$	5,890		$	594,216
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		1		—			1
Current period net	$	—	$	—	$	—		$	—	$	—	$	1	$	—		$	1
Farmland:
Pass	$	17,444	$	12,668	$	10,327		$	6,620	$	9,904	$	15,402	$	5,864		$	78,229
Special mention		—		—		—			—		—		35		—			35
Substandard		—		—		—			—		—		129		—			129
Nonaccrual		—		—		—			—		—		115		—			115
Total farmland loans	$	17,444	$	12,668	$	10,327		$	6,620	$	9,904	$	15,681	$	5,864		$	78,508
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		—		—			—
Current period net	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—

December 31, 2020	2020			2019			2018			2017			2016			Prior			Revolving Loans Amortized Cost			Total
1-4 family residential:
Pass	$	87,578		$	62,937		$	52,087		$	37,224		$	43,858		$	93,486		$	10,091		$	387,261
Special mention		—			—			—			—			—			168			—			168
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			—			326			44			163			1,134			—			1,667
Total 1-4 family residential loans	$	87,578		$	62,937		$	52,413		$	37,268		$	44,021		$	94,788		$	10,091		$	389,096
Charge-offs	$	—		$	—		$	—		$	—		$	(9	)	$	(59	)	$	—		$	(68	)
Recoveries		—			—			—			—			—			2			—			2
Current period net	$	—		$	—		$	—		$	—		$	(9	)	$	(57	)	$	—		$	(66	)
Multi-family residential:
Pass	$	5,889		$	4,498		$	3,617		$	1,371		$	1,737		$	4,391		$	198		$	21,701
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			—			—			—			—			—			—			—
Total multi-family residential loans	$	5,889		$	4,498		$	3,617		$	1,371		$	1,737		$	4,391		$	198		$	21,701
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer and overdrafts:
Pass	$	24,740		$	11,176		$	9,369		$	1,701		$	735		$	513		$	2,825		$	51,059
Special mention		16			83			9			7			—			—			—			115
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		24			36			131			20			1			—			—			212
Total consumer loans and overdrafts	$	24,780		$	11,295		$	9,509		$	1,728		$	736		$	513		$	2,825		$	51,386
Charge-offs	$	(243	)	$	(63	)	$	(31	)	$	(43	)	$	(3	)	$	(6	)	$	—		$	(389	)
Recoveries		49			2			12			8			4			13			—			88
Current period net	$	(194	)	$	(61	)	$	(19	)	$	(35	)	$	1		$	7		$	—		$	(301	)
Agricultural:
Pass	$	3,489		$	1,718		$	1,893		$	607		$	273		$	189		$	7,408		$	15,577
Special mention		—			—			—			36			—			—			—			36
Substandard		—			7			10			—			24			—			—			41
Nonaccrual		—			—			33			—			45			2			—			80
Total agricultural loans	$	3,489		$	1,725		$	1,936		$	643		$	342		$	191		$	7,408		$	15,734
Charge-offs	$	—		$	—		$	(18	)	$	—		$	—		$	—		$	—		$	(18	)
Recoveries		—			—			—			—			20			—			—			20
Current period net	$	—		$	—		$	(18	)	$	—		$	20		$	—		$	—		$	2
Total loans:
Pass	$	628,236		$	281,239		$	205,907		$	148,724		$	157,326		$	264,245		$	125,616		$	1,811,293
Special mention		496			2,918			3,773			5,922			7,048			652			—			20,809
Substandard		—			923			2,565			4,963			5,192			8,369			—			22,012
Nonaccrual		24			1,176			654			4,222			4,992			1,637			—			12,705
Total loans	$	628,756		$	286,256		$	212,899		$	163,831		$	174,558		$	274,903		$	125,616		$	1,866,819
Charge-offs	$	(243	)	$	(63	)	$	(92	)	$	(43	)	$	(12	)	$	(65	)	$	(25	)	$	(543	)
Recoveries		49			2			55			8			24			30			44			212
Total current period net (charge-offs) recoveries	$	(194	)	$	(61	)	$	(37	)	$	(35	)	$	12		$	(35	)	$	19		$	(331	)

Summary of Amortized Cost Basis of Collateral-dependent Loans

The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of September 30, 2021:

	Real Estate		Non-RE		Total		Allowance for Credit Losses Allocation
Commercial and industrial	$	119	$	—	$	119	$	40
Real estate:
Construction and development		609		—		609		207
Commercial real estate		4,540		—		4,540		603
Total	$	5,268	$	—	$	5,268	$	850

The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, as of December 31, 2020:

	Real Estate		Non-RE		Total		Allowance for Credit Losses Allocation
Commercial and industrial	$	129	$	—	$	129	$	44
Real estate:
Construction and development		609		—		609		208
Commercial real estate		9,989		—		9,989		2,048
Total	$	10,727	$	—	$	10,727	$	2,300

Summary of Payment Status of Loans

The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans and loans 90 days or more past due continuing to accrue interest as of:

September 30, 2021	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	874	$	—	$	38	$	912	$	379,558	$	380,470	$	—
Real estate:
Construction and development		—		—		230		230		309,516		309,746		—
Commercial real estate		197		777		258		1,232		632,121		633,353		—
Farmland		149		195		28		372		135,041		135,413		—
1-4 family residential		1,407		465		569		2,441		400,962		403,403		—
Multi-family residential		—		—		—		—		40,810		40,810		—
Consumer		206		33		47		286		52,706		52,992		—
Agricultural		31		9		20		60		14,139		14,199		—
Overdrafts		—		—		—		—		495		495		—
Total	$	2,864	$	1,479	$	1,190	$	5,533	$	1,965,348	$	1,970,881	$	—

December 31, 2020	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	385	$	25	$	22	$	432	$	445,339	$	445,771	$	—
Real estate:
Construction and development		256		—		—		256		270,151		270,407		—
Commercial real estate		1,094		—		10,105		11,199		583,017		594,216		—
Farmland		117		3		—		120		78,388		78,508		—
1-4 family residential		2,097		556		127		2,780		386,316		389,096		—
Multi-family residential		—		—		—		—		21,701		21,701		—
Consumer		383		124		97		604		50,440		51,044		—
Agricultural		50		46		45		141		15,593		15,734		—
Overdrafts		—		—		—		—		342		342		—
Total	$	4,382	$	754	$	10,396	$	15,532	$	1,851,287	$	1,866,819	$	—

Summary of Troubled Debt Restructuring

The outstanding balances of TDRs are shown below:

	September 30, 2021		December 31, 2020
Nonaccrual TDRs	$	84	$	90
Performing TDRs		9,522		9,626
Total	$	9,606	$	9,716
Specific reserves on TDRs	$	—	$	—

There was one loan modified as a TDR during the nine months ended September 30, 2021. No TDRs have subsequently defaulted during 2021, and the TDRs described above did not increase the allowance for credit losses and did not result in any charge-offs during the nine months ended September 30, 2021.

The following table presents the loan, by class, modified as a TDR during the nine months ended September 30, 2021:

Nine Months Ended September 30, 2021	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings:
Commercial and industrial		1	$	17	$	17
Total		1	$	17	$	17

The following table presents loans, by class, modified as TDRs during the year ended December 31, 2020:

Year Ended December 31, 2020	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings:
Construction and development		2	$	1,289	$	1,081
Commercial and industrial		1		129		85
Commercial real estate		1		1,017		670
Total		4	$	2,435	$	1,836