LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024			December 31, 2023
Commercial and industrial	$	269,560		$	287,565
Real estate:
Construction and development		273,300			296,639
Commercial real estate		906,684			923,195
Farmland		180,502			186,295
1-4 family residential		523,573			514,603
Multi-family residential		44,569			44,292
Consumer		54,375			57,059
Agricultural		12,418			12,685
Overdrafts		276			243
Total loans		2,265,257			2,322,576
Net of:
Deferred loan fees, net		(685	)		(775	)
Allowance for credit losses		(30,560	)		(30,920	)
Total net loans(1)	$	2,234,012		$	2,290,881
(1) Excludes accrued interest receivable on loans of $8.9 million and $9.5 million as of March 31, 2024 and December 31, 2023, 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, 2024, for the year ended December 31, 2023 and for the three months ended March 31, 2023:

For the Three Months Ended March 31, 2024	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	$	3,719		$	3,623		$	12,257	$	2,231		$	7,470	$	521		$	945		$	152		$	2		$	30,920
Provision for (reversal of) credit losses		67			(363	)		19		(27	)		215		(4	)		(194	)		(6	)		43			(250	)
Loans charged-off		(216	)		—			—		—			—		—			(35	)		—			(59	)		(310	)
Recoveries		174			—			—		—			—		—			7			2			17			200
Ending balance	$	3,744		$	3,260		$	12,276	$	2,204		$	7,685	$	517		$	723		$	148		$	3		$	30,560

For the Year Ended December 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
(Reversal of) provision for credit losses		(209	)		(1,266	)		(124	)		223		853		31		238			4			250			—
Loans charged-off		(473	)		—			(277	)		—		—		—		(139	)		(3	)		(312	)		(1,204	)
Recoveries		19			—			—			—		—		—		68			2			61			150
Ending balance	$	3,719		$	3,623		$	12,257		$	2,231	$	7,470	$	521	$	945		$	152		$	2		$	30,920

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
(Reversal of) provision 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

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, 2024:

March 31, 2024	2024		2023		2022		2021		2020			Prior		Revolving Loans Amortized Cost		Total
Commercial and industrial:
Pass	$	7,894	$	36,490	$	65,398	$	36,745	$	12,123		$	19,193	$	88,921	$	266,764
Special mention		—		—		9		88		—			82		—		179
Substandard		—		490		255		33		990			566		—		2,334
Nonaccrual		—		51		126		—		7			87		12		283
Total commercial and industrial loans	$	7,894	$	37,031	$	65,788	$	36,866	$	13,120		$	19,928	$	88,933	$	269,560
Charge-offs	$	—	$	—	$	—	$	—	$	(216	)	$	—	$	—	$	(216	)
Recoveries		—		—		—		—		—			174		—		174
Current period net	$	—	$	—	$	—	$	—	$	(216	)	$	174	$	—	$	(42	)
Construction and development:
Pass	$	12,766	$	78,785	$	94,439	$	55,898	$	6,243		$	18,042	$	6,624	$	272,797
Special mention		—		—		—		—		—			—		—		—
Substandard		—		—		187		—		—			67		—		254
Nonaccrual		73		132		—		—		—			44		—		249
Total construction and development loans	$	12,839	$	78,917	$	94,626	$	55,898	$	6,243		$	18,153	$	6,624	$	273,300
Charge-offs	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—
Recoveries		—		—		—		—		—			—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—
Commercial real estate:
Pass	$	10,388	$	55,208	$	359,523	$	146,488	$	79,919		$	215,062	$	14,692	$	881,280
Special mention		—		—		12,325		—		—			4,494		—		16,819
Substandard		—		—		1,296		7,063		—			226		—		8,585
Nonaccrual		—		—		—		—		—			—		—		—
Total commercial real estate loans	$	10,388	$	55,208	$	373,144	$	153,551	$	79,919		$	219,782	$	14,692	$	906,684
Charge-offs	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—
Recoveries		—		—		—		—		—			—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—		$	—	$	—	$	—

March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	1,089	$	23,045	$	73,513	$	45,185	$	7,989	$	20,445	$	8,459	$	179,725
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		48		—		76		—		124
Nonaccrual		—		—		—		256		104		293		—		653
Total farmland loans	$	1,089	$	23,045	$	73,513	$	45,489	$	8,093	$	20,814	$	8,459	$	180,502
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	14,126	$	62,059	$	143,318	$	117,522	$	41,147	$	118,567	$	22,114	$	518,853
Special mention		—		—		—		72		—		19		—		91
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		1,245		371		2,847		166		4,629
Total 1-4 family residential loans	$	14,126	$	62,059	$	143,318	$	118,839	$	41,518	$	121,433	$	22,280	$	523,573
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	—	$	1,971	$	19,946	$	15,047	$	2,337	$	5,261	$	7	$	44,569
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	—	$	1,971	$	19,946	$	15,047	$	2,337	$	5,261	$	7	$	44,569
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

March 31, 2024	2024			2023			2022			2021		2020			Prior			Revolving Loans Amortized Cost		Total
Consumer and overdrafts:
Pass	$	6,817		$	21,293		$	12,771		$	4,987	$	2,033		$	2,630		$	3,830	$	54,361
Special mention		—			27			7			—		—			9			—		43
Substandard		—			—			—			—		—			—			—		—
Nonaccrual		—			29			80			72		23			43			—		247
Total consumer loans and overdrafts	$	6,817		$	21,349		$	12,858		$	5,059	$	2,056		$	2,682		$	3,830	$	54,651
Charge-offs	$	(59	)	$	(20	)	$	(8	)	$	—	$	—		$	(7	)	$	—	$	(94	)
Recoveries		17			—			—			2		3			2			—		24
Current period net	$	(42	)	$	(20	)	$	(8	)	$	2	$	3		$	(5	)	$	—	$	(70	)
Agricultural:
Pass	$	689		$	1,612		$	1,702		$	1,001	$	636		$	804		$	5,855	$	12,299
Special mention		—			—			—			—		—			—			—		—
Substandard		—			—			—			—		—			19			—		19
Nonaccrual		—			—			—			—		—			100			—		100
Total agricultural loans	$	689		$	1,612		$	1,702		$	1,001	$	636		$	923		$	5,855	$	12,418
Charge-offs	$	—		$	—		$	—		$	—	$	—		$	—		$	—	$	—
Recoveries		—			—			—			—		—			2			—		2
Current period net	$	—		$	—		$	—		$	—	$	—		$	2		$	—	$	2
Total loans:
Pass	$	53,769		$	280,463		$	770,610		$	422,873	$	152,427		$	400,004		$	150,502	$	2,230,648
Special mention		—			27			12,341			160		—			4,604			—		17,132
Substandard		—			490			1,738			7,144		990			954			—		11,316
Nonaccrual		73			212			206			1,573		505			3,414			178		6,161
Total loans	$	53,842		$	281,192		$	784,895		$	431,750	$	153,922		$	408,976		$	150,680	$	2,265,257
Charge-offs	$	(59	)	$	(20	)	$	(8	)	$	—	$	(216	)	$	(7	)	$	—	$	(310	)
Recoveries		17			—			—			2		3			178			—		200
Total current period net (charge-offs) recoveries	$	(42	)	$	(20	)	$	(8	)	$	2	$	(213	)	$	171		$	—	$	(110	)

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2023:

December 31, 2023	2023			2022		2021			2020			2019			Prior			Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	42,646		$	72,376	$	38,328		$	12,864		$	8,249		$	12,524		$	96,215		$	283,202
Special mention		—			16		132			958			147			—			250			1,503
Substandard		—			190		—			370			370			153			—			1,083
Nonaccrual		—			129		1,528			7			—			79			34			1,777
Total commercial and industrial loans	$	42,646		$	72,711	$	39,988		$	14,199		$	8,766		$	12,756		$	96,499		$	287,565
Charge-offs	$	(79	)	$	—	$	(25	)	$	(41	)	$	(31	)	$	(4	)	$	(293	)	$	(473	)
Recoveries		—			—		—			—			—			4			15			19
Current period net	$	(79	)	$	—	$	(25	)	$	(41	)	$	(31	)	$	—		$	(278	)	$	(454	)
Construction and development:
Pass	$	86,641		$	112,347	$	62,548		$	7,074		$	5,915		$	12,504		$	9,237		$	296,266
Special mention		—			—		—			—			—			—			—			—
Substandard		—			189		—			—			—			67			—			256
Nonaccrual		—			73		—			—			—			44			—			117
Total construction and development loans	$	86,641		$	112,609	$	62,548		$	7,074		$	5,915		$	12,615		$	9,237		$	296,639
Charge-offs	$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—		—			—			—			—			—			—
Current period net	$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	—
Commercial real estate:
Pass	$	46,655		$	368,933	$	149,536		$	81,765		$	54,100		$	176,509		$	15,065		$	892,563
Special mention		—			7,000		—			—			—			333			—			7,333
Substandard		—			15,831		6,950			—			49			337			—			23,167
Nonaccrual		—			—		—			—			32			100			—			132
Total commercial real estate loans	$	46,655		$	391,764	$	156,486		$	81,765		$	54,181		$	177,279		$	15,065		$	923,195
Charge-offs	$	(190	)	$	—	$	—		$	—		$	—		$	(87	)	$	—		$	(277	)
Recoveries		—			—		—			—			—			—			—			—
Current period net	$	(190	)	$	—	$	—		$	—		$	—		$	(87	)	$	—		$	(277	)

December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	25,009	$	77,371	$	46,817	$	8,556	$	5,599	$	15,850	$	6,849	$	186,051
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		27		53		—		80
Nonaccrual		—		—		—		—		—		164		—		164
Total farmland loans	$	25,009	$	77,371	$	46,817	$	8,556	$	5,626	$	16,067	$	6,849	$	186,295
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	57,348	$	143,992	$	120,964	$	42,535	$	28,764	$	95,198	$	22,146	$	510,947
Special mention		—		—		—		—		—		863		—		863
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		1,249		53		175		1,316		—		2,793
Total 1-4 family residential loans	$	57,348	$	143,992	$	122,213	$	42,588	$	28,939	$	97,377	$	22,146	$	514,603
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	1,984	$	18,041	$	16,496	$	2,363	$	3,862	$	1,492	$	54	$	44,292
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	1,984	$	18,041	$	16,496	$	2,363	$	3,862	$	1,492	$	54	$	44,292
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31, 2023	2023			2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost			Total
Consumer and overdrafts:
Pass	$	26,161		$	15,181		$	5,840		$	2,449		$	589		$	2,307		$	4,488		$	57,015
Special mention		6			26			5			—			—			—			—			37
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		19			52			75			25			42			37			—			250
Total consumer loans and overdrafts	$	26,186		$	15,259		$	5,920		$	2,474		$	631		$	2,344		$	4,488		$	57,302
Charge-offs	$	(346	)	$	(38	)	$	(51	)	$	(11	)	$	(5	)	$	—		$	—		$	(451	)
Recoveries		61			—			4			1			—			23			40			129
Current period net	$	(285	)	$	(38	)	$	(47	)	$	(10	)	$	(5	)	$	23		$	40		$	(322	)
Agricultural:
Pass	$	1,857		$	1,962		$	1,078		$	685		$	236		$	604		$	5,879		$	12,301
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			25			—			25
Nonaccrual		—			—			256			—			74			29			—			359
Total agricultural loans	$	1,857		$	1,962		$	1,334		$	685		$	310		$	658		$	5,879		$	12,685
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	(3	)	$	—		$	(3	)
Recoveries		—			—			—			—			—			2			—			2
Current period net	$	—		$	—		$	—		$	—		$	—		$	(1	)	$	—		$	(1	)
Total loans:
Pass	$	288,301		$	810,203		$	441,607		$	158,291		$	107,314		$	316,988		$	159,933		$	2,282,637
Special mention		6			7,042			137			958			147			1,196			250			9,736
Substandard		—			16,210			6,950			370			446			635			—			24,611
Nonaccrual		19			254			3,108			85			323			1,769			34			5,592
Total loans	$	288,326		$	833,709		$	451,802		$	159,704		$	108,230		$	320,588		$	160,217		$	2,322,576
Charge-offs	$	(615	)	$	(38	)	$	(76	)	$	(52	)	$	(36	)	$	(94	)	$	(293	)	$	(1,204	)
Recoveries		61			—			4			1			—			29			55			150
Total current period net charge-offs	$	(554	)	$	(38	)	$	(72	)	$	(51	)	$	(36	)	$	(65	)	$	(238	)	$	(1,054	)

Summary of Amortized Cost Basis of Collateral-dependent Loans

The following table presents the amortized cost basis of individually evaluated collateral-dependent loans within the ACL model as of December 31, 2023.

December 31, 2023	Real Estate		Non-RE		Total		Allowance for Credit Losses Allocation
Commercial and industrial	$	—	$	217	$	217	$	217
Real estate:
Construction and development		—		—		—		—
Commercial real estate		14,527		—		14,527		—
Total	$	14,527	$	217	$	14,744	$	217

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, 2024	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	$	643	$	127	$	130	$	900	$	268,660	$	269,560	$	—
Real estate:
Construction and development		94		—		176		270		273,030		273,300		—
Commercial real estate		454		576		—		1,030		905,654		906,684		—
Farmland		2,311		—		251		2,562		177,940		180,502		—
1-4 family residential		2,165		266		3,257		5,688		517,885		523,573		—
Multi-family residential		—		—		—		—		44,569		44,569		—
Consumer		264		59		153		476		53,899		54,375		—
Agricultural		73		—		29		102		12,316		12,418		—
Overdrafts		—		—		—		—		276		276		—
Total	$	6,004	$	1,028	$	3,996	$	11,028	$	2,254,229	$	2,265,257	$	—

December 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	$	621	$	30	$	1,656	$	2,307	$	285,258	$	287,565	$	—
Real estate:
Construction and development		315		288		117		720		295,919		296,639		—
Commercial real estate		356		—		132		488		922,707		923,195		—
Farmland		226		84		—		310		185,985		186,295		—
1-4 family residential		2,827		1,110		1,612		5,549		509,054		514,603		—
Multi-family residential		—		—		—		—		44,292		44,292		—
Consumer		169		77		162		408		56,651		57,059		—
Agricultural		16		—		—		16		12,669		12,685		—
Overdrafts		—		—		—		—		243		243		—
Total	$	4,530	$	1,589	$	3,679	$	9,798	$	2,312,778	$	2,322,576	$	—

Schedule of Nonaccrual Loans

The following table presents information regarding nonaccrual loans as of:

	March 31, 2024		December 31, 2023
Commercial and industrial	$	283	$	1,777
Real estate:
Construction and development		249		117
Commercial real estate		—		132
Farmland		653		164
1-4 family residential		4,629		2,793
Consumer and overdrafts		247		250
Agricultural		100		359
Total	$	6,161	$	5,592

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. No loan modifications were made during the three months ended March 31, 2024.

For the Three Months Ended March 31, 2023	Term Extension		Total Class of Financing Receivable
Consumer	$	49		0.08	%
Total loans	$	49		0.00	%

Schedule of Financing Receivable, Financial Effect of the Loan Modifications

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

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 difficulty that have been modified during the last twelve months and continue to experience financial difficulty as of March 31, 2024:

	Current		30 to 89 Days Past Due		90 Days or Greater Past Due
Commercial and industrial	$	792	$	—	$	—
1-4 family residential		53		—		—
Consumer		9		—		—
Total loans	$	854	$	—	$	—