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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Loan Portfolio by Type of Loan

The following table summarizes the Company’s loan portfolio by type of loan as of:


	2024			2023
Commercial and industrial	$	254,702		$	287,565
Real estate:
Construction and development		218,617			296,639
Commercial real estate		866,684			923,195
Farmland		147,191			186,295
1-4 family residential		529,006			514,603
Multi-family residential		51,538			44,292
Consumer		51,394			57,059
Agricultural		11,726			12,685
Overdrafts		279			243
Total loans		2,131,137			2,322,576
Net of:
Deferred loan fees, net		(282	)		(775	)
Allowance for credit losses		(28,290	)		(30,920	)
Total net loans(1)	$	2,102,565		$	2,290,881

(1) Excludes accrued interest receivable on loans of $8,399 and $9,510 as of December 31, 2024 and 2023, respectively, which is presented separately on the consolidated balance sheets.

Schedule of Loans to Principal Officers, Directors and Affiliates

Loans to principal officers, directors, and their affiliates during the year ended December 31, 2024, was as follows:


	December 31, 2024
Beginning balance	$	63,551
New loans		83,516
Repayments		(45,011	)
Ending balance	$	102,056

Schedule of Allowance for Credit Losses Activity

The following tables present the activity in the ACL by class of loans for the years ended December 31, 2024, 2023 and 2022:


For the Year Ended December 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
(Reversal of) provision for credit losses		(524	)		(885	)		(539	)		(401	)		186		7		(80	)		(155	)		191			(2,200	)
Loans charged-off		(630	)		—			—			—			—		—		(106	)		—			(242	)		(978	)
Recoveries		408			—			—			—			—		—		85			3			52			548
Ending balance	$	2,973		$	2,738		$	11,718		$	1,830		$	7,656	$	528	$	844		$	—		$	3		$	28,290


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 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

Summary of Credit Exposure

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2024:


December 31, 2024	2024		2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	40,229	$	28,317		$	50,065		$	28,856		$	9,837		$	15,639		$	80,106		$	253,049
Special mention		26		—			—			57			—			453			36			572
Substandard		36		137			167			—			136			59			10			545
Nonaccrual		17		42			410			27			—			40			—			536
Total commercial and industrial loans	$	40,308	$	28,496		$	50,642		$	28,940		$	9,973		$	16,191		$	80,152		$	254,702

Charge-offs	$	—	$	(7	)	$	(96	)	$	(38	)	$	(249	)	$	(6	)	$	(234	)	$	(630	)
Recoveries		—		15			—			—			217			176			—			408
Current period net	$	—	$	8		$	(96	)	$	(38	)	$	(32	)	$	170		$	(234	)	$	(222	)

Construction and development:
Pass	$	80,512	$	34,301		$	40,399		$	35,409		$	6,222		$	16,857		$	1,208		$	214,908
Special mention		—		—			3,709			—			—			—			—			3,709
Substandard		—		—			—			—			—			—			—			—
Nonaccrual		—		—			—			—			—			—			—			—
Total construction and development loans	$	80,512	$	34,301		$	44,108		$	35,409		$	6,222		$	16,857		$	1,208		$	218,617

Charge-offs	$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—		—			—			—			—			—			—			—
Current period net	$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—

Commercial real estate:
Pass	$	58,453	$	48,300		$	328,088		$	120,214		$	76,684		$	198,433		$	11,921		$	842,093
Special mention		—		—			13,429			9,377			—			—			—			22,806
Substandard		—		—			—			—			—			1,558			—			1,558
Nonaccrual		—		—			—			—			209			18			—			227
Total commercial real estate loans	$	58,453	$	48,300		$	341,517		$	129,591		$	76,893		$	200,009		$	11,921		$	866,684

Charge-offs	$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—		—			—			—			—			—			—			—
Current period net	$	—	$	—		$	—		$	—		$	—		$	—		$	—		$	—


December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost		Total
Farmland:
Pass	$	12,779	$	21,451	$	39,694	$	42,108	$	7,357	$	16,747	$	4,740	$	144,876
Special mention		—		1,687		—		—		—		—		—		1,687
Substandard		—		—		—		86		99		22		—		207
Nonaccrual		—		—		—		—		—		421		—		421
Total farmland loans	$	12,779	$	23,138	$	39,694	$	42,194	$	7,456	$	17,190	$	4,740	$	147,191

Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family residential:
Pass	$	66,808	$	61,249	$	133,197	$	106,297	$	35,825	$	101,662	$	20,557	$	525,595
Special mention		29		—		—		—		—		1,094		—		1,123
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		338		—		—		228		1,567		155		2,288
Total 1-4 family residential loans	$	66,837	$	61,587	$	133,197	$	106,297	$	36,053	$	104,323	$	20,712	$	529,006

Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential:
Pass	$	1,010	$	1,759	$	30,389	$	14,340	$	1,324	$	2,665	$	51	$	51,538
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—		—
Total multi-family residential loans	$	1,010	$	1,759	$	30,389	$	14,340	$	1,324	$	2,665	$	51	$	51,538

Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Recoveries		—		—		—		—		—		—		—		—
Current period net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


December 31, 2024	2024			2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost			Total
Consumer and overdrafts:
Pass	$	21,519		$	12,431		$	6,955		$	3,009		$	1,192		$	2,120		$	4,210		$	51,436
Special mention		14			4			—			—			—			—			—			18
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		12			80			86			7			18			16			—			219
Total consumer loans and overdrafts	$	21,545		$	12,515		$	7,041		$	3,016		$	1,210		$	2,136		$	4,210		$	51,673

Charge-offs	$	(252	)	$	(44	)	$	(43	)	$	—		$	—		$	(9	)	$	—		$	(348	)
Recoveries		52			—			—			14			3			17			51			137
Current period net	$	(200	)	$	(44	)	$	(43	)	$	14		$	3		$	8		$	51		$	(211	)

Agricultural:
Pass	$	2,644		$	993		$	1,225		$	673		$	367		$	597		$	5,104		$	11,603
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			85			—			85
Nonaccrual		—			—			21			—			—			17			—			38
Total agricultural loans	$	2,644		$	993		$	1,246		$	673		$	367		$	699		$	5,104		$	11,726

Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			3			—			3
Current period net	$	—		$	—		$	—		$	—		$	—		$	3		$	—		$	3

Total loans:
Pass	$	283,954		$	208,801		$	630,012		$	350,906		$	138,808		$	354,720		$	127,897		$	2,095,098
Special mention		69			1,691			17,138			9,434			—			1,547			36			29,915
Substandard		36			137			167			86			235			1,724			10			2,395
Nonaccrual		29			460			517			34			455			2,079			155			3,729
Total loans	$	284,088		$	211,089		$	647,834		$	360,460		$	139,498		$	360,070		$	128,098		$	2,131,137

Charge-offs	$	(252	)	$	(51	)	$	(139	)	$	(38	)	$	(249	)	$	(15	)	$	(234	)	$	(978	)
Recoveries		52			15			—			14			220			196			51			548
Total current period net (charge-offs) recoveries	$	(200	)	$	(36	)	$	(139	)	$	(24	)	$	(29	)	$	181		$	(183	)	$	(430	)

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 by class of loans, and their impact on the ACL, as of December 31, 2024:


December 31, 2024	Real Estate		Non-RE		Total		Allowance for Credit Losses Allocation
Commercial real estate		1,530		—		1,530		250
Total	$	1,530	$	—	$	1,530	$	250

The following table presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loans, and their impact on the ACL, 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:


December 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	$	465	$	231	$	436	$	1,132	$	253,570	$	254,702	$	—
Real estate:
Construction and development		778		—		—		778		217,839		218,617		—
Commercial real estate		659		18		209		886		865,798		866,684		—
Farmland		307		90		140		537		146,654		147,191		—
1-4 family residential		3,587		1,261		1,214		6,062		522,944		529,006		—
Multi-family residential		—		—		—		—		51,538		51,538		—
Consumer		280		61		174		515		50,879		51,394		—
Agricultural		150		—		21		171		11,555		11,726		—
Overdrafts		—		—		—		—		279		279		—
Total	$	6,226	$	1,661	$	2,194	$	10,081	$	2,121,056	$	2,131,137	$	—


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:


	2024		2023
Commercial and industrial	$	536	$	1,777
Real estate:
Construction and development		—		117
Commercial real estate		227		132
Farmland		421		164
1-4 family residential		2,288		2,793
Multi-family residential		—		—
Consumer and overdrafts		219		250
Agricultural		38		359
Total	$	3,729	$	5,592

Schedule of Financing Receivable, Amortized Cost Basis of Loans

The following tables present the amortized cost basis of loans modified during the years ended December 31, 2024 and 2023 to borrowers experiencing financial difficulty:


For the Year Ended December 31, 2024	Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total Class of Financing Receivable
Commercial and industrial	$	—	$	—	$	113		0.04	%
Construction and development		—		12		—		0.01	%
Total loans	$	—	$	12	$	113		0.01	%


For the Year Ended December 31, 2023	Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total Class of Financing Receivable
Commercial and industrial	$	900	$	—	$	—		0.31	%
1-4 family residential		57		—		—		0.01	%
Consumer		12		—		—		0.02	%
Total loans	$	969	$	—	$	—		0.04	%

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 year ended December 31, 2024:


For the Year Ended December 31, 2024
Interest Rate Reduction		Financial Effect
Construction and development		Reduced weighted-average contractual interest rate from 9.74% to 6.99%.

Combo Interest Rate and Term		Financial Effect
Commercial and industrial		Reduced weighted-average contractual interest rate from 10.45% to 9.91% and amortization period was extended by a weighted-average period of 0.54 years.


For the Year Ended December 31, 2023
Term Extension		Financial Effect
Commercial and industrial		Amortization period was extended by a weighted-average period of 0.25 years.
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 0.26 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 were modified during the last twelve months and continue to experience financial difficulty as of December 31, 2024:


	Current		30 to 89 Days Past Due		90 Days or Greater Past Due
Commercial and industrial	$	113	$	—	$	—
Construction and development		12		—		—
Total loans	$	125	$	—	$	—

The Company had a $41