LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 2024			December 31, 2023
Commercial and industrial	$	264,058		$	287,565
Real estate:
Construction and development		231,053			296,639
Commercial real estate		899,120			923,195
Farmland		180,126			186,295
1-4 family residential		526,650			514,603
Multi-family residential		47,507			44,292
Consumer		53,642			57,059
Agricultural		12,506			12,685
Overdrafts		335			243
Total loans		2,214,997			2,322,576
Net of:
Deferred loan fees, net		(468	)		(775	)
Allowance for credit losses		(29,282	)		(30,920	)
Total net loans(1)	$	2,185,247		$	2,290,881
(1) Excludes accrued interest receivable on loans of $8.8 million and $9.5 million as of June 30, 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 six months ended June 30, 2024, for the year ended December 31, 2023 and for the six months ended June 30, 2023:

For the Six Months Ended June 30, 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
(Reversal of) provision for credit losses		(477	)		(717	)		(78	)		(154	)		(69	)		19		(41	)		(12	)		79			(1,450	)
Loans charged-off		(230	)		—			—			—			—			—		(85	)		—			(110	)		(425	)
Recoveries		174			—			—			—			—			—		29			2			32			237
Ending balance	$	3,186		$	2,906		$	12,179		$	2,077		$	7,401		$	540	$	848		$	142		$	3		$	29,282

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 Six Months Ended June 30, 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		(102	)		(470	)		136			97		82		—		155			(3	)		105			—
Loans charged-off		(20	)		—			(87	)		—		—		—		(72	)		(3	)		(136	)		(318	)
Recoveries		12			—			—			—		—		—		58			2			31			103
Ending balance	$	4,272		$	4,419		$	12,707		$	2,105	$	6,699	$	490	$	919		$	145		$	3		$	31,759

Summary of Credit Exposure

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of June 30, 2024:

June 30, 2024	2024		2023			2022			2021		2020			Prior		Revolving Loans Amortized Cost		Total
Commercial and industrial:
Pass	$	15,342	$	35,793		$	61,181		$	34,395	$	11,410		$	18,853	$	84,918	$	261,892
Special mention		—		—			—			79		—			—		—		79
Substandard		38		365			180			30		612			544		10		1,779
Nonaccrual		—		30			181			—		6			91		—		308
Total commercial and industrial loans	$	15,380	$	36,188		$	61,542		$	34,504	$	12,028		$	19,488	$	84,928	$	264,058
Charge-offs	$	—	$	(7	)	$	(7	)	$	—	$	(216	)	$	—	$	—	$	(230	)
Recoveries		—		—			—			—		—			174		—		174
Current period net	$	—	$	(7	)	$	(7	)	$	—	$	(216	)	$	174	$	—	$	(56	)
Construction and development:
Pass	$	31,445	$	63,291		$	62,209		$	42,803	$	6,769		$	17,754	$	2,880	$	227,151
Special mention		—		—			—			—		—			—		—		—
Substandard		—		—			3,762			—		—			67		—		3,829
Nonaccrual		73		—			—			—		—			—		—		73
Total construction and development loans	$	31,518	$	63,291		$	65,971		$	42,803	$	6,769		$	17,821	$	2,880	$	231,053
Charge-offs	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—
Recoveries		—		—			—			—		—			—		—		—
Current period net	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—
Commercial real estate:
Pass	$	20,168	$	47,136		$	345,141		$	140,798	$	79,022		$	208,168	$	14,933	$	855,366
Special mention		—		—			23,260			2,528		—			4,467		—		30,255
Substandard		—		—			5,893			7,011		—			29		—		12,933
Nonaccrual		—		—			399			—		—			167		—		566
Total commercial real estate loans	$	20,168	$	47,136		$	374,693		$	150,337	$	79,022		$	212,831	$	14,933	$	899,120
Charge-offs	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—
Recoveries		—		—			—			—		—			—		—		—
Current period net	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—

June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	8,727	$	20,874	$	71,441	$	44,503	$	7,786	$	17,756	$	6,251	$	177,338
Special mention		—		1,686		—		—		—		141		—		1,827
Substandard		—		—		—		46		—		73		—		119
Nonaccrual		—		—		—		306		97		439		—		842
Total farmland loans	$	8,727	$	22,560	$	71,441	$	44,855	$	7,883	$	18,409	$	6,251	$	180,126
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family residential:
Pass	$	32,609	$	59,658	$	139,748	$	113,008	$	40,714	$	114,663	$	20,074	$	520,474
Special mention		—		—		1,136		—		—		21		1,018		2,175
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		342		143		186		256		2,911		163		4,001
Total 1-4 family residential loans	$	32,609	$	60,000	$	141,027	$	113,194	$	40,970	$	117,595	$	21,255	$	526,650
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential:
Pass	$	760	$	1,959	$	25,644	$	14,938	$	1,356	$	2,813	$	37	$	47,507
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	760	$	1,959	$	25,644	$	14,938	$	1,356	$	2,813	$	37	$	47,507
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30, 2024	2024			2023			2022			2021		2020			Prior			Revolving Loans Amortized Cost		Total
Consumer and overdrafts:
Pass	$	13,870		$	17,894		$	10,056		$	4,216	$	1,673		$	2,401		$	3,586	$	53,696
Special mention		5			15			10			11		—			5			—		46
Substandard		—			—			—			—		—			—			—		—
Nonaccrual		—			73			79			25		21			37			—		235
Total consumer loans and overdrafts	$	13,875		$	17,982		$	10,145		$	4,252	$	1,694		$	2,443		$	3,586	$	53,977
Charge-offs	$	(110	)	$	(38	)	$	(38	)	$	—	$	—		$	(9	)	$	—	$	(195	)
Recoveries		33			—			—			14		3			11			—		61
Current period net	$	(77	)	$	(38	)	$	(38	)	$	14	$	3		$	2		$	—	$	(134	)
Agricultural:
Pass	$	1,551		$	1,288		$	1,536		$	814	$	542		$	736		$	5,798	$	12,265
Special mention		—			—			22			—		—			—			—		22
Substandard		—			—			—			—		—			19			—		19
Nonaccrual		—			—			29			—		—			171			—		200
Total agricultural loans	$	1,551		$	1,288		$	1,587		$	814	$	542		$	926		$	5,798	$	12,506
Charge-offs	$	—		$	—		$	—		$	—	$	—		$	—		$	—	$	—
Recoveries		—			—			—			—		—			2			—		2
Current period net	$	—		$	—		$	—		$	—	$	—		$	2		$	—	$	2
Total loans:
Pass	$	124,472		$	247,893		$	716,956		$	395,475	$	149,272		$	383,144		$	138,477	$	2,155,689
Special mention		5			1,701			24,428			2,618		—			4,634			1,018		34,404
Substandard		38			365			9,835			7,087		612			732			10		18,679
Nonaccrual		73			445			831			517		380			3,816			163		6,225
Total loans	$	124,588		$	250,404		$	752,050		$	405,697	$	150,264		$	392,326		$	139,668	$	2,214,997
Charge-offs	$	(110	)	$	(45	)	$	(45	)	$	—	$	(216	)	$	(9	)	$	—	$	(425	)
Recoveries		33			—			—			14		3			187			—		237
Total current period net (charge-offs) recoveries	$	(77	)	$	(45	)	$	(45	)	$	14	$	(213	)	$	178		$	—	$	(188	)

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:
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:

June 30, 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	$	1,037	$	31	$	61	$	1,129	$	262,929	$	264,058	$	—
Real estate:
Construction and development		2,735		—		—		2,735		228,318		231,053		—
Commercial real estate		21		52		399		472		898,648		899,120		—
Farmland		1,046		—		415		1,461		178,665		180,126		—
1-4 family residential		805		2,670		1,515		4,990		521,660		526,650		—
Multi-family residential		—		—		—		—		47,507		47,507		—
Consumer		191		74		158		423		53,219		53,642		—
Agricultural		91		12		29		132		12,374		12,506		—
Overdrafts		—		—		—		—		335		335		—
Total	$	5,926	$	2,839	$	2,577	$	11,342	$	2,203,655	$	2,214,997	$	—

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:

	June 30, 2024		December 31, 2023
Commercial and industrial	$	308	$	1,777
Real estate:
Construction and development		73		117
Commercial real estate		566		132
Farmland		842		164
1-4 family residential		4,001		2,793
Consumer and overdrafts		235		250
Agricultural		200		359
Total	$	6,225	$	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 six months ended June 30, 2024 and 2023.

For the Six Months Ended June 30, 2024	Term Extension		Interest Rate Reduction		Total Class of Financing Receivable
Commercial and industrial	$	43	$	11		0.02	%
Agricultural		—		102		0.82	%
Total loans	$	43	$	113		0.01	%

For the Six Months Ended June 30, 2023	Term Extension		Interest Rate Reduction		Total Class of Financing Receivable
1-4 family residential	$	60	$	—		0.01	%
Consumer		64		—		0.11	%
Total loans	$	124	$	—		0.01	%

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 six months ended June 30, 2024 and 2023:

For the Six Months Ended June 30, 2024
Term Extension	Financial Effect
Commercial and industrial	Amortization period was reduced by a weighted-average period of 0.67 years.
Interest Rate Reduction	Financial Effect
Commercial and industrial	Reduced weighted-average contractual interest rate from 8.5% to 0.0%.
Agricultural	Reduced weighted-average contractual interest rate from 8.5% to 0.0%.

For the Six Months Ended June 30, 2023
Term Extension	Financial Effect
1-4 family residential	Amortization period was extended by a weighted-average period of 5.00 years.
Consumer	Amortization period was extended by a weighted-average period of 5.49 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 June 30, 2024:

	Current		30 to 89 Days Past Due		90 Days or Greater Past Due
Commercial and industrial	$	491	$	—	$	—
Agricultural		102		—		—
Total loans	$	593	$	—	$	—