LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023			December 31, 2022
Commercial and industrial	$	295,936		$	314,067
Real estate:
Construction and development		372,203			377,135
Commercial real estate		900,190			887,587
Farmland		190,802			185,817
1-4 family residential		499,944			493,061
Multi-family residential		44,760			45,147
Consumer		60,163			61,394
Agricultural		13,545			13,686
Overdrafts		270			282
Total loans		2,377,813			2,378,176
Net of:
Deferred loan fees, net		(1,620	)		(1,957	)
Allowance for credit losses		(31,953	)		(31,974	)
Total net loans(1)	$	2,344,240		$	2,344,245
(1) Excludes accrued interest receivable on loans of $7.7 million and $7.6 million as of March 31, 2023 and December 31, 2022, 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 three months ended March 31, 2023, for the year ended December 31, 2022 and for the three months ended March 31, 2022:

For the Three Months Ended March 31, 2023	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	$	4,382		$	4,889		$	12,658	$	2,008	$	6,617	$	490		$	778		$	149		$	3		$	31,974
Provision for (reversal of) for credit losses		(239	)		(25	)		32		78		24		(11	)		82			(4	)		63			—
Loans charged-off		(3	)		—			—		—		—		—			(7	)		(3	)		(81	)		(94	)
Recoveries		8			—			—		—		—		—			45			2			18			73
Ending balance	$	4,148		$	4,864		$	12,690	$	2,086	$	6,641	$	479		$	898		$	144		$	3		$	31,953

For the Year Ended December 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		902			668		(1,108	)		310		769		94		283			(20	)		252			2,150
Loans charged-off		(192	)		—		—			—		—		—		(322	)		—			(335	)		(849	)
Recoveries		72			—		1			—		30		—		55			—			82			240
Ending balance	$	4,382		$	4,889	$	12,658		$	2,008	$	6,617	$	490	$	778		$	149		$	3		$	31,974

For the Three Months 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
Provision for (reversal of) 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

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, 2023:

March 31, 2023	2023		2022		2021		2020		2019		Prior			Revolving Loans Amortized Cost		Total
Commercial and industrial:
Pass	$	20,706	$	86,053	$	53,172	$	17,774	$	10,891	$	16,203		$	88,735	$	293,534
Special mention		—		—		—		—		287		—			640		927
Substandard		—		13		—		240		410		204			—		867
Nonaccrual		—		135		343		75		—		31			24		608
Total commercial and industrial loans	$	20,706	$	86,201	$	53,515	$	18,089	$	11,588	$	16,438		$	89,399	$	295,936
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	(3	)	$	—	$	(3	)
Recoveries		—		—		—		—		—		4			4		8
Current period net	$	—	$	—	$	—	$	—	$	—	$	1		$	4	$	5
Construction and development:
Pass	$	12,877	$	177,829	$	127,875	$	16,879	$	8,031	$	13,573		$	11,750	$	368,814
Special mention		—		893		—		—		—		—			—		893
Substandard		—		—		—		—		—		—			—		—
Nonaccrual		—		262		799		—		—		1,435			—		2,496
Total construction and development loans	$	12,877	$	178,984	$	128,674	$	16,879	$	8,031	$	15,008		$	11,750	$	372,203
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Recoveries		—		—		—		—		—		—			—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Commercial real estate:
Pass	$	19,634	$	356,222	$	148,170	$	85,555	$	59,890	$	194,906		$	15,545	$	879,922
Special mention		—		—		—		1,291		—		5,961			—		7,252
Substandard		—		1,617		—		262		—		4,181			—		6,060
Nonaccrual		—		—		—		—		87		6,869			—		6,956
Total commercial real estate loans	$	19,634	$	357,839	$	148,170	$	87,108	$	59,977	$	211,917		$	15,545	$	900,190
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Recoveries		—		—		—		—		—		—			—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	—

March 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	10,605	$	91,287	$	50,961	$	9,384	$	6,530	$	17,194	$	4,642	$	190,603
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		30		60		—		90
Nonaccrual		—		—		—		—		—		109		—		109
Total farmland loans	$	10,605	$	91,287	$	50,961	$	9,384	$	6,560	$	17,363	$	4,642	$	190,802
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	13,428	$	144,109	$	130,185	$	48,171	$	29,331	$	110,684	$	20,781	$	496,689
Special mention		—		—		45		—		47		123		—		215
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		300		429		183		112		1,316		700		3,040
Total 1-4 family residential loans	$	13,428	$	144,409	$	130,659	$	48,354	$	29,490	$	112,123	$	21,481	$	499,944
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	—	$	18,146	$	18,225	$	2,438	$	4,182	$	1,678	$	91	$	44,760
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	—	$	18,146	$	18,225	$	2,438	$	4,182	$	1,678	$	91	$	44,760
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

March 31, 2023	2023			2022			2021			2020		2019		Prior			Revolving Loans Amortized Cost		Total
Consumer and overdrafts:
Pass	$	7,309		$	27,868		$	9,807		$	4,593	$	1,370	$	3,084		$	6,201	$	60,232
Special mention		—			10			9			—		19		9			—		47
Substandard		—			—			—			—		—		—			—		—
Nonaccrual		—			22			79			25		10		18			—		154
Total consumer loans and overdrafts	$	7,309		$	27,900		$	9,895		$	4,618	$	1,399	$	3,111		$	6,201	$	60,433
Charge-offs	$	(81	)	$	(4	)	$	(3	)	$	—	$	—	$	—		$	—	$	(88	)
Recoveries		18			—			1			—		—		4			40		63
Current period net	$	(63	)	$	(4	)	$	(2	)	$	—	$	—	$	4		$	40	$	(25	)
Agricultural:
Pass	$	652		$	2,503		$	1,483		$	929	$	459	$	716		$	6,736	$	13,478
Special mention		—			—			—			—		—		—			—		—
Substandard		—			—			—			—		—		25			—		25
Nonaccrual		—			—			—			—		—		42			—		42
Total agricultural loans	$	652		$	2,503		$	1,483		$	929	$	459	$	783		$	6,736	$	13,545
Charge-offs	$	—		$	—		$	—		$	—	$	—	$	(3	)	$	—	$	(3	)
Recoveries		—			—			—			—		—		2			—		2
Current period net	$	—		$	—		$	—		$	—	$	—	$	(1	)	$	—	$	(1	)
Total loans:
Pass	$	85,211		$	904,017		$	539,878		$	185,723	$	120,684	$	358,038		$	154,481	$	2,348,032
Special mention		—			903			54			1,291		353		6,093			640		9,334
Substandard		—			1,630			—			502		440		4,470			—		7,042
Nonaccrual		—			719			1,650			283		209		9,820			724		13,405
Total loans	$	85,211		$	907,269		$	541,582		$	187,799	$	121,686	$	378,421		$	155,845	$	2,377,813
Charge-offs	$	(81	)	$	(4	)	$	(3	)	$	—	$	—	$	(6	)	$	—	$	(94	)
Recoveries		18			—			1			—		—		10			44		73
Total current period net (charge-offs) recoveries	$	(63	)	$	(4	)	$	(2	)	$	—	$	—	$	4		$	44	$	(21	)

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

December 31, 2022	2022		2021		2020			2019		2018		Prior		Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	99,750	$	57,854	$	19,577		$	11,797	$	4,172	$	12,907	$	105,628		$	311,685
Special mention		—		131		—			333		—		—		905			1,369
Substandard		14		—		246			423		192		23		—			898
Nonaccrual		72		33		10			—		—		—		—			115
Total commercial and industrial loans	$	99,836	$	58,018	$	19,833		$	12,553	$	4,364	$	12,930	$	106,533		$	314,067
Charge-offs	$	—	$	—	$	(67	)	$	—	$	—	$	—	$	(125	)	$	(192	)
Recoveries		—		—		—			—		—		32		40			72
Current period net	$	—	$	—	$	(67	)	$	—	$	—	$	32	$	(85	)	$	(120	)
Construction and development:
Pass	$	179,501	$	138,388	$	17,361		$	8,697	$	3,443	$	10,535	$	16,870		$	374,795
Special mention		905		—		—			—		—		—		—			905
Substandard		—		—		—			—		—		—		—			—
Nonaccrual		—		—		—			—		1,435		—		—			1,435
Total construction and development loans	$	180,406	$	138,388	$	17,361		$	8,697	$	4,878	$	10,535	$	16,870		$	377,135
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		—		—			—
Current period net	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Commercial real estate:
Pass	$	347,162	$	147,986	$	86,897		$	63,988	$	51,002	$	158,384	$	12,007		$	867,426
Special mention		—		—		1,300			—		2,594		3,427		—			7,321
Substandard		1,336		—		—			—		26		4,207		—			5,569
Nonaccrual		—		—		251			96		—		6,924		—			7,271
Total commercial real estate loans	$	348,498	$	147,986	$	88,448		$	64,084	$	53,622	$	172,942	$	12,007		$	887,587
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		1		—		—			1
Current period net	$	—	$	—	$	—		$	—	$	1	$	—	$	—		$	1

December 31, 2022	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	93,128	$	51,912	$	10,284	$	6,646	$	5,956	$	11,741	$	5,948	$	185,615
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		31		—		62		—		93
Nonaccrual		—		—		—		—		—		109		—		109
Total farmland loans	$	93,128	$	51,912	$	10,284	$	6,677	$	5,956	$	11,912	$	5,948	$	185,817
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	143,268	$	128,957	$	50,140	$	30,068	$	27,104	$	89,678	$	21,956	$	491,171
Special mention		—		—		43		—		—		156		—		199
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		148		—		116		118		1,309		—		1,691
Total 1-4 family residential loans	$	143,268	$	129,105	$	50,183	$	30,184	$	27,222	$	91,143	$	21,956	$	493,061
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		30		—		30
Current period net	$	—	$	—	$	—	$	—	$	—	$	30	$	—	$	30
Multi-family residential:
Pass	$	18,183	$	18,331	$	2,463	$	4,216	$	878	$	985	$	91	$	45,147
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	18,183	$	18,331	$	2,463	$	4,216	$	878	$	985	$	91	$	45,147
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31, 2022	2022			2021			2020			2019			2018		Prior		Revolving Loans Amortized Cost			Total
Consumer and overdrafts:
Pass	$	32,817		$	11,789		$	5,455		$	1,835		$	3,079	$	473	$	6,008		$	61,456
Special mention		14			4			—			28			4		—		—			50
Substandard		—			—			—			—			—		—		—			—
Nonaccrual		17			93			21			12			23		4		—			170
Total consumer loans and overdrafts	$	32,848		$	11,886		$	5,476		$	1,875		$	3,106	$	477	$	6,008		$	61,676
Charge-offs	$	(335	)	$	(26	)	$	(25	)	$	(21	)	$	—	$	—	$	(250	)	$	(657	)
Recoveries		83			3			6			11			1		33		—			137
Current period net	$	(252	)	$	(23	)	$	(19	)	$	(10	)	$	1	$	33	$	(250	)	$	(520	)
Agricultural:
Pass	$	3,148		$	1,914		$	984		$	491		$	392	$	422	$	6,243		$	13,594
Special mention		—			—			—			—			—		3		—			3
Substandard		—			—			—			—			—		32		—			32
Nonaccrual		—			—			—			—			4		53		—			57
Total agricultural loans	$	3,148		$	1,914		$	984		$	491		$	396	$	510	$	6,243		$	13,686
Charge-offs	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—
Recoveries		—			—			—			—			—		—		—			—
Current period net	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—
Total loans:
Pass	$	916,957		$	557,131		$	193,161		$	127,738		$	96,026	$	285,125	$	174,751		$	2,350,889
Special mention		919			135			1,343			361			2,598		3,586		905			9,847
Substandard		1,350			—			246			454			218		4,324		—			6,592
Nonaccrual		89			274			282			224			1,580		8,399		—			10,848
Total loans	$	919,315		$	557,540		$	195,032		$	128,777		$	100,422	$	301,434	$	175,656		$	2,378,176
Charge-offs	$	(335	)	$	(26	)	$	(92	)	$	(21	)	$	—	$	—	$	(375	)	$	(849	)
Recoveries		83			3			6			11			2		95		40			240
Total current period net charge-offs	$	(252	)	$	(23	)	$	(86	)	$	(10	)	$	2	$	95	$	(335	)	$	(609	)

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, 2023	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	$	449	$	79	$	208	$	736	$	295,200	$	295,936	$	—
Real estate:
Construction and development		1,347		—		2,306		3,653		368,550		372,203		—
Commercial real estate		353		—		6,675		7,028		893,162		900,190		—
Farmland		129		97		—		226		190,576		190,802		—
1-4 family residential		2,586		290		1,840		4,716		495,228		499,944		—
Multi-family residential		—		—		—		—		44,760		44,760		—
Consumer		697		78		81		856		59,307		60,163		—
Agricultural		—		40		—		40		13,505		13,545		—
Overdrafts		—		—		—		—		270		270		—
Total	$	5,561	$	584	$	11,110	$	17,255	$	2,360,558	$	2,377,813	$	—

December 31, 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	$	440	$	44	$	105	$	589	$	313,478	$	314,067	$	—
Real estate:
Construction and development		258		73		1,435		1,766		375,369		377,135		—
Commercial real estate		882		354		6,708		7,944		879,643		887,587		—
Farmland		129		79		—		208		185,609		185,817		—
1-4 family residential		2,101		547		572		3,220		489,841		493,061		—
Multi-family residential		—		—		—		—		45,147		45,147		—
Consumer		164		118		70		352		61,042		61,394		—
Agricultural		37		10		—		47		13,639		13,686		—
Overdrafts		—		—		—		—		282		282		—
Total	$	4,011	$	1,225	$	8,890	$	14,126	$	2,364,050	$	2,378,176	$	—

Schedule of Nonaccrual Loans

The following table presents information regarding nonaccrual loans as of:

	March 31, 2023		December 31, 2022
Commercial and industrial	$	608	$	115
Real estate:
Construction and development		2,496		1,435
Commercial real estate		6,956		7,271
Farmland		109		109
1-4 family residential		3,040		1,691
Consumer and overdrafts		154		170
Agricultural		42		57
Total	$	13,405	$	10,848

Schedule of Financing Receivable, Amortized Cost Basis of Loans

The following table presents the amortized cost basis of loans made to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2023:

For the Three Months Ended March 31, 2023	Term Extension		Total Class of Financing Receivable
Consumer	$	49		0.1	%
Total loans	$	49		0.1	%

Schedule of Financing Receivable, Financial Effect of the Loan Modifications

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three months ended March 31, 2023:

Term Extension
Loan Type	Financial Effect
Consumer	Amortization period was extended by a weighted-average period of 7.2 years.

Schedule of Financing Receivable, Age Analysis of Loans

The following table provides an age analysis of loans made to borrowers experiencing financial difficult that were modified on or after our ASU 2022-02 adoption date of January 1, 2023:

	Current		30 to 89 Days Past Due		90 Days or Greater Past Due
Consumer		49		—		—
Total loans	$	49	$	—	$	—