LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2022			December 31, 2021
Commercial and industrial	$	278,091		$	280,569
Real estate:
Construction and development		391,564			307,797
Commercial real estate		821,941			622,842
Farmland		179,402			145,501
1-4 family residential		467,983			410,673
Multi-family residential		43,025			30,971
Consumer		58,835			50,965
Agricultural		13,917			14,639
Warehouse lending(1)		10,938			43,720
Overdrafts		369			363
Total loans(2)		2,266,065			1,908,040
Net of:
Deferred loan fees, net		(2,048	)		(1,531	)
Allowance for credit losses		(29,235	)		(30,433	)
Total net loans(2)	$	2,234,782		$	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 $6.3 million and $5.8 million as of September 30, 2022 and December 31, 2021, respectively, which is presented separately on the consolidated balance sheets.

Schedule of Allowance for Credit Losses Activity

The following tables present the activity in the ACL by class of loans for the nine months ended September 30, 2022, for the year ended December 31, 2021 and for the nine months ended September 30, 2021:

Nine Months Ended September 30, 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		347			389		(2,121	)		141		158		50		229			(19	)		176			(650	)
Loans charged-off		(192	)		—		—			—		—		—		(313	)		—			(241	)		(746	)
Recoveries		62			—		1			—		30		—		40			—			65			198
Ending balance	$	3,817		$	4,610	$	11,645		$	1,839	$	6,006	$	446	$	718		$	150		$	4		$	29,235

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

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

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, 2022:

September 30, 2022	2022		2021		2020			2019		2018		Prior		Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	79,468	$	71,470	$	21,831		$	12,466	$	4,490	$	13,440	$	83,168		$	286,333
Special mention		—		137		—			378		—		—		950			1,465
Substandard		—		—		252			647		198		63		—			1,160
Nonaccrual		13		47		11			—		—		—		—			71
Total commercial and industrial loans	$	79,481	$	71,654	$	22,094		$	13,491	$	4,688	$	13,503	$	84,118		$	289,029
Charge-offs	$	—	$	—	$	(67	)	$	—	$	—	$	—	$	(125	)	$	(192	)
Recoveries		—		—		—			—		—		33		29			62
Current period net	$	—	$	—	$	(67	)	$	—	$	—	$	33	$	(96	)	$	(130	)
Construction and development:
Pass	$	154,255	$	171,294	$	29,113		$	8,852	$	4,986	$	11,923	$	9,280		$	389,703
Special mention		—		—		950			—		—		911		—			1,861
Substandard		—		—		—			—		—		—		—			—
Nonaccrual		—		—		—			—		—		—		—			—
Total construction and development loans	$	154,255	$	171,294	$	30,063		$	8,852	$	4,986	$	12,834	$	9,280		$	391,564
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		—		—			—
Current period net	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Commercial real estate:
Pass	$	286,359	$	132,069	$	93,375		$	64,690	$	53,721	$	159,911	$	10,094		$	800,219
Special mention		—		—		—			—		2,605		4,281		—			6,886
Substandard		—		—		—			—		1,026		6,456		—			7,482
Nonaccrual		—		—		254			104		16		6,980		—			7,354
Total commercial real estate loans	$	286,359	$	132,069	$	93,629		$	64,794	$	57,368	$	177,628	$	10,094		$	821,941
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		1		—		—			1
Current period net	$	—	$	—	$	—		$	—	$	1	$	—	$	—		$	1

September 30, 2022	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	83,092	$	54,255	$	11,283	$	6,936	$	6,046	$	12,305	$	5,271	$	179,188
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		32		—		65		—		97
Nonaccrual		—		—		—		—		—		117		—		117
Total farmland loans	$	83,092	$	54,255	$	11,283	$	6,968	$	6,046	$	12,487	$	5,271	$	179,402
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	113,548	$	126,656	$	51,155	$	32,313	$	28,004	$	94,089	$	20,530	$	466,295
Special mention		—		—		—		120		—		34		—		154
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		153		—		—		123		1,258		—		1,534
Total 1-4 family residential loans	$	113,548	$	126,809	$	51,155	$	32,433	$	28,127	$	95,381	$	20,530	$	467,983
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		30		—		30
Current period net	$	—	$	—	$	—	$	—	$	—	$	30	$	—	$	30
Multi-family residential:
Pass	$	14,970	$	18,452	$	2,488	$	4,249	$	886	$	1,889	$	91	$	43,025
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	14,970	$	18,452	$	2,488	$	4,249	$	886	$	1,889	$	91	$	43,025
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

September 30, 2022	2022			2021			2020			2019			2018		Prior			Revolving Loans Amortized Cost			Total
Consumer and overdrafts:
Pass	$	25,380		$	14,285		$	6,650		$	2,287		$	3,350	$	572		$	6,531		$	59,055
Special mention		5			—			9			12			—		—			—			26
Substandard		—			—			—			—			—		—			—			—
Nonaccrual		—			81			5			4			27		6			—			123
Total consumer loans and overdrafts	$	25,385		$	14,366		$	6,664		$	2,303		$	3,377	$	578		$	6,531		$	59,204
Charge-offs	$	(241	)	$	(20	)	$	(22	)	$	(20	)	$	—	$	(1	)	$	(250	)	$	(554	)
Recoveries		66			2			6			11			1		19			—			105
Current period net	$	(175	)	$	(18	)	$	(16	)	$	(9	)	$	1	$	18		$	(250	)	$	(449	)
Agricultural:
Pass	$	2,780		$	2,071		$	1,096		$	556		$	433	$	471		$	6,327		$	13,734
Special mention		—			—			—			—			—		4			—			4
Substandard		—			—			14			2			—		32			—			48
Nonaccrual		—			—			—			—			6		53			72			131
Total agricultural loans	$	2,780		$	2,071		$	1,110		$	558		$	439	$	560		$	6,399		$	13,917
Charge-offs	$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—
Recoveries		—			—			—			—			—		—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—
Total loans:
Pass	$	759,852		$	590,552		$	216,991		$	132,349		$	101,916	$	294,600		$	141,292		$	2,237,552
Special mention		5			137			959			510			2,605		5,230			950			10,396
Substandard		—			—			266			681			1,224		6,616			—			8,787
Nonaccrual		13			281			270			108			172		8,414			72			9,330
Total loans	$	759,870		$	590,970		$	218,486		$	133,648		$	105,917	$	314,860		$	142,314		$	2,266,065
Charge-offs	$	(241	)	$	(20	)	$	(89	)	$	(20	)	$	—	$	(1	)	$	(375	)	$	(746	)
Recoveries		66			2			6			11			2		82			29			198
Total current period net (charge-offs) recoveries	$	(175	)	$	(18	)	$	(83	)	$	(9	)	$	2	$	81		$	(346	)	$	(548	)

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 December 31, 2021. There were no individually evaluated collateral -dependent loans as of September 30, 2022.

December 31, 2021	Real Estate		Non-RE		Total		Allowance for Credit Losses Allocation
Commercial and industrial	$	116	$	—	$	116	$	40
Real estate:
Construction and development		609		—		609		207
Commercial real estate		4,319		—		4,319		553
Total	$	5,044	$	—	$	5,044	$	800

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, 2022	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	121	$	—	$	59	$	180	$	288,849	$	289,029	$	—
Real estate:
Construction and development		196		—		—		196		391,368		391,564		—
Commercial real estate		—		—		6,761		6,761		815,180		821,941		—
Farmland		19		35		—		54		179,348		179,402		—
1-4 family residential		1,537		232		467		2,236		465,747		467,983		—
Multi-family residential		—		—		—		—		43,025		43,025		—
Consumer		337		47		27		411		58,424		58,835		—
Agricultural		2		4		6		12		13,905		13,917		—
Overdrafts		—		—		—		—		369		369		—
Total	$	2,212	$	318	$	7,320	$	9,850	$	2,256,215	$	2,266,065	$	—

December 31, 2021	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or 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:

	September 30, 2022		December 31, 2021
Commercial and industrial	$	71	$	148
Real estate:
Commercial real estate		7,354		642
Farmland		117		298
1-4 family residential		1,534		1,535
Consumer and overdrafts		123		160
Agricultural		131		48
Total	$	9,330	$	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