LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2022

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:

	March 31, 2022			December 31, 2021
Commercial and industrial	$	270,074		$	280,569
Real estate:
Construction and development		318,035			307,797
Commercial real estate		674,558			622,842
Farmland		186,982			145,501
1-4 family residential		430,755			410,673
Multi-family residential		42,021			30,971
Consumer		52,670			50,965
Agricultural		14,403			14,639
Warehouse lending(1)		24,260			43,720
Overdrafts		303			363
Total loans(2)		2,014,061			1,908,040
Net of:
Deferred loan fees, net		(1,516	)		(1,531	)
Allowance for credit losses		(29,096	)		(30,433	)
Total net loans(2)	$	1,983,449		$	1,876,076
(1) Warehouse lending is presented as a component of commercial and industrial loans in remaining tables.
(2) Excludes accrued interest receivable on loans of $5.8 million as of March 31, 2022 and December 31, 2021,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 three months ended March 31, 2022, for the year ended December 31, 2021 and for the three months ended March 31, 2021:

Quarter Ended March 31, 2022	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	$	3,600		$	4,221		$	13,765		$	1,698	$	5,818		$	396	$	762		$	169		$	4		$	30,433
(Reversal of) provision for credit losses		230			(323	)		(1,569	)		302		(119	)		60		146			(13	)		36			(1,250	)
Loans charged-off		(119	)		—			—			—		—			—		(17	)		—			(67	)		(203	)
Recoveries		39			—			1			—		30			—		16			—			30			116
Ending balance	$	3,750		$	3,898		$	12,197		$	2,000	$	5,729		$	456	$	907		$	156		$	3		$	29,096

For the Year Ended December 31, 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
(Reversal of) provision for credit losses		(43	)		(515	)		(1,229	)		478		(495	)		33		(51	)		(78	)		200			(1,700	)
Loans charged-off		(411	)		—			(816	)		—		—			—		(151	)		—			(263	)		(1,641	)
Recoveries		21			1			30			—		—			—		35			8			60			155
Ending balance	$	3,600		$	4,221		$	13,765		$	1,698	$	5,818		$	396	$	762		$	169		$	4		$	30,433

Quarter Ended March 31, 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		(504	)		(538	)		1,087			(163	)		13		133		(29	)		(31	)		32			—
Loans charged-off		(7	)		—			(758	)		—			—		—		(61	)		—			(49	)		(875	)
Recoveries		7			1			—			—			—		—		4			—			14			26
Ending balance	$	3,529		$	4,198		$	16,109		$	1,057		$	6,326	$	496	$	843		$	208		$	4		$	32,770

Summary of Credit Exposure

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of March 31, 2022:

March 31, 2022	2022		2021		2020			2019		2018		Prior		Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	42,707	$	96,935	$	27,986		$	14,909	$	5,920	$	16,305	$	88,106		$	292,868
Special mention		—		156		—			—		—		—		—			156
Substandard		—		—		265			659		210		37		—			1,171
Nonaccrual		—		33		71			—		—		—		35			139
Total commercial and industrial loans	$	42,707	$	97,124	$	28,322		$	15,568	$	6,130	$	16,342	$	88,141		$	294,334
Charge-offs	$	—	$	—	$	(30	)	$	—	$	—	$	—	$	(89	)	$	(119	)
Recoveries		—		—		—			—		—		33		6			39
Current period net	$	—	$	—	$	(30	)	$	—	$	—	$	33	$	(83	)	$	(80	)
Construction and development:
Pass	$	42,538	$	176,595	$	48,275		$	18,242	$	6,119	$	18,559	$	5,960		$	316,288
Special mention		—		—		814			—		—		932		—			1,746
Substandard		—		—		—			—		1		—		—			1
Nonaccrual		—		—		—			—		—		—		—			—
Total construction and development loans	$	42,538	$	176,595	$	49,089		$	18,242	$	6,120	$	19,491	$	5,960		$	318,035
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		—		—			—
Current period net	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Commercial real estate:
Pass	$	67,507	$	137,731	$	104,126		$	76,086	$	57,139	$	173,813	$	16,875		$	633,277
Special mention		—		—		—			—		8,921		13,406		—			22,327
Substandard		—		—		—			—		1,034		17,415		—			18,449
Nonaccrual		—		—		—			115		64		326		—			505
Total commercial real estate loans	$	67,507	$	137,731	$	104,126		$	76,201	$	67,158	$	204,960	$	16,875		$	674,558
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		1		—		—			1
Current period net	$	—	$	—	$	—		$	—	$	1	$	—	$	—		$	1

March 31, 2022	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	45,866	$	92,766	$	12,486	$	7,915	$	7,375	$	14,292	$	5,914	$	186,614
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		70		—		70
Nonaccrual		—		—		195		—		—		103		—		298
Total farmland loans	$	45,866	$	92,766	$	12,681	$	7,915	$	7,375	$	14,465	$	5,914	$	186,982
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	35,231	$	131,940	$	63,134	$	38,256	$	32,144	$	112,524	$	15,667	$	428,896
Special mention		—		—		—		91		—		203		—		294
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		163		—		—		172		1,230		—		1,565
Total 1-4 family residential loans	$	35,231	$	132,103	$	63,134	$	38,347	$	32,316	$	113,957	$	15,667	$	430,755
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		30		—		30
Current period net	$	—	$	—	$	—	$	—	$	—	$	30	$	—	$	30
Multi-family residential:
Pass	$	12,469	$	16,723	$	2,742	$	6,385	$	900	$	2,501	$	301	$	42,021
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	12,469	$	16,723	$	2,742	$	6,385	$	900	$	2,501	$	301	$	42,021
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

March 31, 2022	2022			2021			2020			2019		2018		Prior		Revolving Loans Amortized Cost			Total
Consumer and overdrafts:
Pass	$	8,612		$	20,436		$	9,551		$	3,709	$	3,965	$	931	$	5,375		$	52,579
Special mention		—			9			6			4		—		9		250			278
Substandard		—			—			—			—		—		—		—			—
Nonaccrual		—			50			6			26		31		3		—			116
Total consumer loans and overdrafts	$	8,612		$	20,495		$	9,563		$	3,739	$	3,996	$	943	$	5,625		$	52,973
Charge-offs	$	(68	)	$	(6	)	$	(10	)	$	—	$	—	$	—	$	—		$	(84	)
Recoveries		30			1			—			10		—		5		—			46
Current period net	$	(38	)	$	(5	)	$	(10	)	$	10	$	—	$	5	$	—		$	(38	)
Agricultural:
Pass	$	393		$	2,952		$	1,589		$	830	$	801	$	621	$	7,089		$	14,275
Special mention		—			—			—			—		—		6		—			6
Substandard		—			—			14			3		14		32		—			63
Nonaccrual		—			—			—			—		6		53		—			59
Total agricultural loans	$	393		$	2,952		$	1,603		$	833	$	821	$	712	$	7,089		$	14,403
Charge-offs	$	—		$	—		$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—			—			—			—		—		—		—			—
Current period net	$	—		$	—		$	—		$	—	$	—	$	—	$	—		$	—
Total loans:
Pass	$	255,323		$	676,078		$	269,889		$	166,332	$	114,363	$	339,546	$	145,287		$	1,966,818
Special mention		—			165			820			95		8,921		14,556		250			24,807
Substandard		—			—			279			662		1,259		17,554		—			19,754
Nonaccrual		—			246			272			141		273		1,715		35			2,682
Total loans	$	255,323		$	676,489		$	271,260		$	167,230	$	124,816	$	373,371	$	145,572		$	2,014,061
Charge-offs	$	(68	)	$	(6	)	$	(40	)	$	—	$	—	$	—	$	(89	)	$	(203	)
Recoveries		30			1			—			10		1		68		6			116
Total current period net (charge-offs) recoveries	$	(38	)	$	(5	)	$	(40	)	$	10	$	1	$	68	$	(83	)	$	(87	)

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2021:

December 31, 2021	2021		2020		2019			2018			2017			Prior			Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	176,972	$	31,337	$	16,207		$	6,449		$	3,493		$	14,657		$	74,364		$	323,479
Special mention		—		88		—			—			14			—			—			102
Substandard		—		272		55			192			40			1			—			560
Nonaccrual		14		101		—			22			—			11			—			148
Total commercial and industrial loans	$	176,986	$	31,798	$	16,262		$	6,663		$	3,547		$	14,669		$	74,364		$	324,289
Charge-offs	$	—	$	—	$	(168	)	$	(67	)	$	(115	)	$	—		$	(61	)	$	(411	)
Recoveries		—		—		—			—			—			—			21			21
Current period net	$	—	$	—	$	(168	)	$	(67	)	$	(115	)	$	—		$	(40	)	$	(390	)
Construction and development:
Pass	$	180,056	$	68,765	$	20,499		$	6,507		$	8,235		$	13,565		$	8,615		$	306,242
Special mention		—		—		—			—			944			—			—			944
Substandard		—		—		609			2			—			—			—			611
Nonaccrual		—		—		—			—			—			—			—			—
Total construction and development loans	$	180,056	$	68,765	$	21,108		$	6,509		$	9,179		$	13,565		$	8,615		$	307,797
Charge-offs	$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—		—		—			—			—			1			—			1
Current period net	$	—	$	—	$	—		$	—		$	—		$	1		$	—		$	1
Commercial real estate:
Pass	$	134,617	$	93,806	$	80,733		$	59,380		$	43,457		$	145,477		$	16,065		$	573,535
Special mention		—		765		—			—			4,550			788			—			6,103
Substandard		—		6,987		—			10,041			12,981			12,553			—			42,562
Nonaccrual		—		—		124			69			32			337			80			642
Total commercial real estate loans	$	134,617	$	101,558	$	80,857		$	69,490		$	61,020		$	159,155		$	16,145		$	622,842
Charge-offs	$	—	$	—	$	(17	)	$	(56	)	$	(472	)	$	(271	)	$	—		$	(816	)
Recoveries		—		—		19			—			11			—			—			30
Current period net	$	—	$	—	$	2		$	(56	)	$	(461	)	$	(271	)	$	—		$	(786	)

December 31, 2021	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	94,491	$	11,868	$	8,664	$	7,456	$	5,191	$	11,145	$	6,290	$	145,105
Special mention		—		—		—		—		—		26		—		26
Substandard		—		—		—		—		—		72		—		72
Nonaccrual		—		195		—		—		—		103		—		298
Total farmland loans	$	94,491	$	12,063	$	8,664	$	7,456	$	5,191	$	11,346	$	6,290	$	145,501
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	132,448	$	64,590	$	43,016	$	36,501	$	26,987	$	91,864	$	13,714	$	409,120
Special mention		—		—		—		—		—		18		—		18
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		170		—		—		180		58		1,127		—		1,535
Total 1-4 family residential loans	$	132,618	$	64,590	$	43,016	$	36,681	$	27,045	$	93,009	$	13,714	$	410,673
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	16,663	$	4,286	$	6,436	$	908	$	474	$	2,113	$	91	$	30,971
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	16,663	$	4,286	$	6,436	$	908	$	474	$	2,113	$	91	$	30,971
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31, 2021	2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost			Total
Consumer and overdrafts:
Pass	$	24,715		$	11,589		$	4,557		$	4,647		$	558		$	543		$	4,478		$	51,087
Special mention		76			—			5			—			—			—			—			81
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		56			27			10			62			5			—			—			160
Total consumer loans and overdrafts	$	24,847		$	11,616		$	4,572		$	4,709		$	563		$	543		$	4,478		$	51,328
Charge-offs	$	(285	)	$	(36	)	$	(57	)	$	(32	)	$	(2	)	$	(2	)	$	—		$	(414	)
Recoveries		61			3			—			8			2			21			—			95
Current period net	$	(224	)	$	(33	)	$	(57	)	$	(24	)	$	—		$	19		$	—		$	(319	)
Agricultural:
Pass	$	3,557		$	1,866		$	927		$	917		$	221		$	526		$	6,492		$	14,506
Special mention		—			—			—			—			13			—			—			13
Substandard		—			14			4			15			39			—			—			72
Nonaccrual		—			—			—			8			—			40			—			48
Total agricultural loans	$	3,557		$	1,880		$	931		$	940		$	273		$	566		$	6,492		$	14,639
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			8			—			8
Current period net	$	—		$	—		$	—		$	—		$	—		$	8		$	—		$	8
Total loans:
Pass	$	763,519		$	288,107		$	181,039		$	122,765		$	88,616		$	279,890		$	130,109		$	1,854,045
Special mention		76			853			5			—			5,521			832			—			7,287
Substandard		—			7,273			668			10,250			13,060			12,626			—			43,877
Nonaccrual		240			323			134			341			95			1,618			80			2,831
Total loans	$	763,835		$	296,556		$	181,846		$	133,356		$	107,292		$	294,966		$	130,189		$	1,908,040
Charge-offs	$	(285	)	$	(36	)	$	(242	)	$	(155	)	$	(589	)	$	(273	)	$	(61	)	$	(1,641	)
Recoveries		61			3			19			8			13			30			21			155
Total current period net charge-offs	$	(224	)	$	(33	)	$	(223	)	$	(147	)	$	(576	)	$	(243	)	$	(40	)	$	(1,486	)

Summary of Amortized Cost Basis of Collateral-dependent Loans

The following tables presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loan, and their impact on the ACL, as of March 31, 2022 and December 31, 2021:

March 31, 2022	Real Estate		Non-RE		Total		Allowance for Credit Losses Allocation
Commercial and industrial	$	757	$	—	$	757	$	282
Real estate:
Commercial real estate		4,295		—		4,295		553
Consumer		250		—		250		250
Total	$	5,302	$	—	$	5,302	$	1,085

December 31, 2021	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:

March 31, 2022	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	$	223	$	—	$	119	$	342	$	293,992	$	294,334	$	—
Real estate:
Construction and development		170		—		—		170		317,865		318,035		—
Commercial real estate		727		6,990		—		7,717		666,841		674,558		—
Farmland		100		433		195		728		186,254		186,982		—
1-4 family residential		2,674		625		234		3,533		427,222		430,755		—
Multi-family residential		—		—		—		—		42,021		42,021		—
Consumer		226		287		34		547		52,123		52,670		—
Agricultural		105		—		—		105		14,298		14,403		—
Overdrafts		—		—		—		—		303		303		—
Total	$	4,225	$	8,335	$	582	$	13,142	$	2,000,919	$	2,014,061	$	—

December 31, 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	$	969	$	38	$	134	$	1,141	$	323,148	$	324,289	$	—
Real estate:
Construction and development		885		132		—		1,017		306,780		307,797		—
Commercial real estate		—		360		350		710		622,132		622,842		—
Farmland		114		87		195		396		145,105		145,501		—
1-4 family residential		1,650		123		410		2,183		408,490		410,673		—
Multi-family residential		—		—		—		—		30,971		30,971		—
Consumer		189		113		68		370		50,595		50,965		—
Agricultural		41		8		—		49		14,590		14,639		—
Overdrafts		—		—		—		—		363		363		—
Total	$	3,848	$	861	$	1,157	$	5,866	$	1,902,174	$	1,908,040	$	—

Schedule of Nonaccrual Loans

The following table presents information regarding nonaccrual loans as of:

	March 31, 2022		December 31, 2021
Commercial and industrial	$	139	$	148
Real estate:
Commercial real estate		505		642
Farmland		298		298
1-4 family residential		1,565		1,535
Consumer and overdrafts		116		160
Agricultural		59		48
Total	$	2,682	$	2,831

Summary of Troubled Debt Restructuring

The following table presents loans, by class, modified as TDRs during the year ended December 31, 2021:

Year Ended December 31, 2021	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings:
Commercial and industrial		1		17		14
Total		1	$	17	$	14