LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2021

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, 2021			December 31, 2020
Commercial and industrial	$	424,624		$	445,771
Real estate:
Construction and development		264,002			270,407
Commercial real estate		608,464			594,216
Farmland		94,525			78,508
1-4 family residential		389,616			389,096
Multi-family residential		42,086			21,701
Consumer		51,795			51,044
Agricultural		14,608			15,734
Overdrafts		444			342
Total loans(1)		1,890,164			1,866,819
Net of:
Deferred loan fees, net		(2,339	)		(1,463	)
Allowance for credit losses		(31,548	)		(33,619	)
Total net loans(1)	$	1,856,277		$	1,831,737

(1) Excludes accrued interest receivable on loans of $5.8 million and $7.0 million as of June 30, 2021 and December 31, 2020, respectively, which is presented separately on the consolidated balance sheets.

Schedule of Allowance for Credit Losses Activity

The Company’s estimate of the allowance for credit losses (“ACL”) reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The following tables present the activity in the ACL by class of loans for the six months ended June 30, 2021, for the year ended December 31, 2020 and for the six months ended June 30, 2020:

For the Six Months Ended June 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		(329	)		(914	)		167			19		(162	)		255		(34	)		(49	)		47			(1,000	)
Loans charged-off		(238	)		—			(760	)		—		—			—		(76	)		—			(84	)		(1,158	)
Recoveries		11			1			11			—		—			—		28			—			36			87
Ending balance	$	3,477		$	3,822		$	15,198		$	1,239	$	6,151		$	618	$	847		$	190		$	6		$	31,548

For the Year Ended December 31, 2020	Commercial and industrial			Construction and development		Commercial real estate		Farmland		1-4 family residential			Multi-family residential			Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance, prior to adoption of ASC 326	$	2,056		$	2,378	$	6,853	$	570	$	3,125		$	409		$	602		$	197		$	12		$	16,202
Impact of adopting ASC 326		546			323		2,228		26		1,339			(50	)		72			73			(9	)		4,548
Provision for loan losses		1,398			2,034		6,698		624		1,915			4			373			(33	)		187			13,200
Loans charged-off		(68	)		—		—		—		(68	)		—			(155	)		(18	)		(234	)		(543	)
Recoveries		101			—		1		—		2			—			37			20			51			212
Ending balance	$	4,033		$	4,735	$	15,780	$	1,220	$	6,313		$	363		$	929		$	239		$	7		$	33,619

For the Six Months Ended June 30, 2020	Commercial and industrial			Construction and development		Commercial real estate		Farmland		1-4 family residential			Multi-family residential			Consumer			Agricultural			Overdrafts			Unallocated		Total
Allowance for loan losses:
Beginning balance	$	2,056		$	2,378	$	6,853	$	570	$	3,125		$	409		$	602		$	197		$	12		$	—	$	16,202
Impact of adopting ASC 326		546			323		2,228		26		1,339			(50	)		72			73			(9	)		—		4,548
Provision for loan losses		1,491			2,193		6,567		654		1,729			245			364			114			60			83		13,500
Loans charged-off		(43	)		—		—		—		(59	)		—			(80	)		(18	)		(83	)		—		(283	)
Recoveries		86			—		—		—		2			—			17			20			27			—		152
Ending balance	$	4,136		$	4,894	$	15,648	$	1,250	$	6,136		$	604		$	975		$	386		$	7		$	83	$	34,119

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, 2021:

June 30, 2021	2021		2020		2019			2018			2017			Prior			Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	211,052	$	67,442	$	24,286		$	10,741		$	6,105		$	20,334		$	83,765		$	423,725
Special mention		30		105		—			—			27			—			—			162
Substandard		—		284		62			226			46			33			—			651
Nonaccrual		—		—		41			4			—			2			39			86
Total commercial and industrial loans	$	211,082	$	67,831	$	24,389		$	10,971		$	6,178		$	20,369		$	83,804		$	424,624
Charge-offs	$	—	$	—	$	(145	)	$	(67	)	$	(19	)	$	—		$	(7	)	$	(238	)
Recoveries		—		—		—			—			—			1			10			11
Current period net	$	—	$	—	$	(145	)	$	(67	)	$	(19	)	$	1		$	3		$	(227	)
Construction and development:
Pass	$	75,324	$	95,313	$	41,751		$	8,414		$	17,464		$	16,080		$	7,054		$	261,400
Special mention		—		793		—			—			967			—			—			1,760
Substandard		—		—		609			3			—			—			—			612
Nonaccrual		—		—		230			—			—			—			—			230
Total construction and development loans	$	75,324	$	96,106	$	42,590		$	8,417		$	18,431		$	16,080		$	7,054		$	264,002
Charge-offs	$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—		—		—			—			—			1			—			1
Current period net	$	—	$	—	$	—		$	—		$	—		$	1		$	—		$	1
Commercial real estate:
Pass	$	59,861	$	99,816	$	71,480		$	65,798		$	46,928		$	186,791		$	13,461		$	544,135
Special mention		406		—		1,610			3,298			4,630			1,843			—			11,787
Substandard		—		7,072		2,391			10,943			13,210			18,204			—			51,820
Nonaccrual		—		—		—			162			202			358			—			722
Total commercial real estate loans	$	60,267	$	106,888	$	75,481		$	80,201		$	64,970		$	207,196		$	13,461		$	608,464
Charge-offs	$	—	$	—	$	(17	)	$	—		$	(472	)	$	(271	)	$	—		$	(760	)
Recoveries		—		—		—			—			11			—			—			11
Current period net	$	—	$	—	$	(17	)	$	—		$	(461	)	$	(271	)	$	—		$	(749	)
Farmland:
Pass	$	28,867	$	13,528	$	9,286		$	9,158		$	5,494		$	22,182		$	5,750		$	94,265
Special mention		—		—		—			—			—			30			—			30
Substandard		—		—		—			—			—			121			—			121
Nonaccrual		—		—		—			—			—			109			—			109
Total farmland loans	$	28,867	$	13,528	$	9,286		$	9,158		$	5,494		$	22,442		$	5,750		$	94,525
Charge-offs	$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—		—		—			—			—			—			—			—
Current period net	$	—	$	—	$	—		$	—		$	—		$	—		$	—		$	—

June 30, 2021	2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost			Total
1-4 family residential:
Pass	$	54,740		$	76,540		$	57,049		$	43,069		$	30,548		$	114,346		$	11,120		$	387,412
Special mention		—			—			—			—			27			—			—			27
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			—			227			310			230			1,410			—			2,177
Total 1-4 family residential loans	$	54,740		$	76,540		$	57,276		$	43,379		$	30,805		$	115,756		$	11,120		$	389,616
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Multi-family residential:
Pass	$	12,271		$	4,828		$	4,426		$	15,480		$	593		$	3,601		$	206		$	41,405
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			681			—			—			681
Nonaccrual		—			—			—			—			—			—			—			—
Total multi-family residential loans	$	12,271		$	4,828		$	4,426		$	15,480		$	1,274		$	3,601		$	206		$	42,086
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer and overdrafts:
Pass	$	15,248		$	16,834		$	7,234		$	6,807		$	1,051		$	804		$	4,005		$	51,983
Special mention		—			8			2			—			—			—			—			10
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			44			84			106			12			—			—			246
Total consumer loans and overdrafts	$	15,248		$	16,886		$	7,320		$	6,913		$	1,063		$	804		$	4,005		$	52,239
Charge-offs	$	(87	)	$	(18	)	$	(38	)	$	(16	)	$	(1	)	$	—		$	—		$	(160	)
Recoveries		36			3			—			8			2			15			—			64
Current period net	$	(51	)	$	(15	)	$	(38	)	$	(8	)	$	1		$	15		$	—		$	(96	)
Agricultural:
Pass	$	1,535		$	2,330		$	1,232		$	1,222		$	333		$	652		$	7,153		$	14,457
Special mention		—			—			—			—			27			—			—			27
Substandard		—			—			5			33			46			17			—			101
Nonaccrual		—			—			—			23			—			—			—			23
Total agricultural loans	$	1,535		$	2,330		$	1,237		$	1,278		$	406		$	669		$	7,153		$	14,608
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total loans:
Pass	$	458,898		$	376,631		$	216,744		$	160,689		$	108,516		$	364,790		$	132,514		$	1,818,782
Special mention		436			906			1,612			3,298			5,678			1,873			—			13,803
Substandard		—			7,356			3,067			11,205			13,983			18,375			—			53,986
Nonaccrual		—			44			582			605			444			1,879			39			3,593
Total loans	$	459,334		$	384,937		$	222,005		$	175,797		$	128,621		$	386,917		$	132,553		$	1,890,164
Charge-offs	$	(87	)	$	(18	)	$	(200	)	$	(83	)	$	(492	)	$	(271	)	$	(7	)	$	(1,158	)
Recoveries		36			3			—			8			13			17			10			87
Total current period net (charge-offs) recoveries	$	(51	)	$	(15	)	$	(200	)	$	(75	)	$	(479	)	$	(254	)	$	3		$	(1,071	)

The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2020:

December 31, 2020	2020		2019		2018			2017		2016		Prior		Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	278,687	$	30,563	$	12,860		$	4,366	$	6,131	$	16,294	$	90,074		$	438,975
Special mention		124		119		222			4,040		1,324		—		—			5,829
Substandard		—		307		540			50		43		—		—			940
Nonaccrual		—		—		13			—		14		—		—			27
Total commercial and industrial loans	$	278,811	$	30,989	$	13,635		$	8,456	$	7,512	$	16,294	$	90,074		$	445,771
Charge-offs	$	—	$	—	$	(43	)	$	—	$	—	$	—	$	(25	)	$	(68	)
Recoveries		—		—		43			—		—		14		44			101
Current period net	$	—	$	—	$	—		$	—	$	—	$	14	$	19		$	33
Construction and development:
Pass	$	118,590	$	76,926	$	26,212		$	24,524	$	7,742	$	10,507	$	3,266		$	267,767
Special mention		356		—		—			990		—		—		—			1,346
Substandard		—		609		5			—		680		—		—			1,294
Nonaccrual		—		—		—			—		—		—		—			—
Total construction and development loans	$	118,946	$	77,535	$	26,217		$	25,514	$	8,422	$	10,507	$	3,266		$	270,407
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		—		—			—
Current period net	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Commercial real estate:
Pass	$	91,819	$	80,753	$	89,542		$	72,311	$	86,946	$	123,463	$	5,890		$	550,724
Special mention		—		2,716		3,542			849		5,724		449		—			13,280
Substandard		—		—		2,010			4,913		4,445		8,240		—			19,608
Nonaccrual		—		1,140		151			4,158		4,769		386		—			10,604
Total commercial real estate loans	$	91,819	$	84,609	$	95,245		$	82,231	$	101,884	$	132,538	$	5,890		$	594,216
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		1		—			1
Current period net	$	—	$	—	$	—		$	—	$	—	$	1	$	—		$	1
Farmland:
Pass	$	17,444	$	12,668	$	10,327		$	6,620	$	9,904	$	15,402	$	5,864		$	78,229
Special mention		—		—		—			—		—		35		—			35
Substandard		—		—		—			—		—		129		—			129
Nonaccrual		—		—		—			—		—		115		—			115
Total farmland loans	$	17,444	$	12,668	$	10,327		$	6,620	$	9,904	$	15,681	$	5,864		$	78,508
Charge-offs	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—
Recoveries		—		—		—			—		—		—		—			—
Current period net	$	—	$	—	$	—		$	—	$	—	$	—	$	—		$	—

December 31, 2020	2020			2019			2018			2017			2016			Prior			Revolving Loans Amortized Cost			Total
1-4 family residential:
Pass	$	87,578		$	62,937		$	52,087		$	37,224		$	43,858		$	93,486		$	10,091		$	387,261
Special mention		—			—			—			—			—			168			—			168
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			—			326			44			163			1,134			—			1,667
Total 1-4 family residential loans	$	87,578		$	62,937		$	52,413		$	37,268		$	44,021		$	94,788		$	10,091		$	389,096
Charge-offs	$	—		$	—		$	—		$	—		$	(9	)	$	(59	)	$	—		$	(68	)
Recoveries		—			—			—			—			—			2			—			2
Current period net	$	—		$	—		$	—		$	—		$	(9	)	$	(57	)	$	—		$	(66	)
Multi-family residential:
Pass	$	5,889		$	4,498		$	3,617		$	1,371		$	1,737		$	4,391		$	198		$	21,701
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			—			—			—			—			—			—			—
Total multi-family residential loans	$	5,889		$	4,498		$	3,617		$	1,371		$	1,737		$	4,391		$	198		$	21,701
Charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Recoveries		—			—			—			—			—			—			—			—
Current period net	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer and overdrafts:
Pass	$	24,740		$	11,176		$	9,369		$	1,701		$	735		$	513		$	2,825		$	51,059
Special mention		16			83			9			7			—			—			—			115
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		24			36			131			20			1			—			—			212
Total consumer loans and overdrafts	$	24,780		$	11,295		$	9,509		$	1,728		$	736		$	513		$	2,825		$	51,386
Charge-offs	$	(243	)	$	(63	)	$	(31	)	$	(43	)	$	(3	)	$	(6	)	$	—		$	(389	)
Recoveries		49			2			12			8			4			13			—			88
Current period net	$	(194	)	$	(61	)	$	(19	)	$	(35	)	$	1		$	7		$	—		$	(301	)
Agricultural:
Pass	$	3,489		$	1,718		$	1,893		$	607		$	273		$	189		$	7,408		$	15,577
Special mention		—			—			—			36			—			—			—			36
Substandard		—			7			10			—			24			—			—			41
Nonaccrual		—			—			33			—			45			2			—			80
Total agricultural loans	$	3,489		$	1,725		$	1,936		$	643		$	342		$	191		$	7,408		$	15,734
Charge-offs	$	—		$	—		$	(18	)	$	—		$	—		$	—		$	—		$	(18	)
Recoveries		—			—			—			—			20			—			—			20
Current period net	$	—		$	—		$	(18	)	$	—		$	20		$	—		$	—		$	2
Total loans:
Pass	$	628,236		$	281,239		$	205,907		$	148,724		$	157,326		$	264,245		$	125,616		$	1,811,293
Special mention		496			2,918			3,773			5,922			7,048			652			—			20,809
Substandard		—			923			2,565			4,963			5,192			8,369			—			22,012
Nonaccrual		24			1,176			654			4,222			4,992			1,637			—			12,705
Total loans	$	628,756		$	286,256		$	212,899		$	163,831		$	174,558		$	274,903		$	125,616		$	1,866,819
Charge-offs	$	(243	)	$	(63	)	$	(92	)	$	(43	)	$	(12	)	$	(65	)	$	(25	)	$	(543	)
Recoveries		49			2			55			8			24			30			44			212
Total current period net (charge-offs) recoveries	$	(194	)	$	(61	)	$	(37	)	$	(35	)	$	12		$	(35	)	$	19		$	(331	)

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 June 30, 2021:

	Real Estate		Non-RE		Total		Allowance for Credit Losses       Allocation
Commercial and industrial	$	123	$	—	$	123	$	42
Real estate:
Construction and development		609		—		609		210
Commercial real estate		4,602		—		4,602		948
Total	$	5,334	$	—	$	5,334	$	1,200

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, 2020:

	Real Estate		Non-RE		Total		Allowance for Credit Losses       Allocation
Commercial and industrial	$	129	$	—	$	129	$	44
Real estate:
Construction and development		609		—		609		208
Commercial real estate		9,989		—		9,989		2,048
Total	$	10,727	$	—	$	10,727	$	2,300

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, 2021	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	45	$	38	$	59	$	142	$	424,482	$	424,624	$	—
Real estate:
Construction and development		64		236		230		530		263,472		264,002		—
Commercial real estate		40		278		206		524		607,940		608,464		—
Farmland		95		—		—		95		94,430		94,525		—
1-4 family residential		1,315		63		641		2,019		387,597		389,616		—
Multi-family residential		—		—		—		—		42,086		42,086		—
Consumer		178		18		85		281		51,514		51,795		—
Agricultural		42		—		—		42		14,566		14,608		—
Overdrafts		—		—		—		—		444		444		—
Total	$	1,779	$	633	$	1,221	$	3,633	$	1,886,531	$	1,890,164	$	—

December 31, 2020	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	385	$	25	$	22	$	432	$	445,339	$	445,771	$	—
Real estate:
Construction and development		256		—		—		256		270,151		270,407		—
Commercial real estate		1,094		—		10,105		11,199		583,017		594,216		—
Farmland		117		3		—		120		78,388		78,508		—
1-4 family residential		2,097		556		127		2,780		386,316		389,096		—
Multi-family residential		—		—		—		—		21,701		21,701		—
Consumer		383		124		97		604		50,440		51,044		—
Agricultural		50		46		45		141		15,593		15,734		—
Overdrafts		—		—		—		—		342		342		—
Total	$	4,382	$	754	$	10,396	$	15,532	$	1,851,287	$	1,866,819	$	—

Summary of Troubled Debt Restructuring

The outstanding balances of TDRs are shown below:

	June 30, 2021		December 31, 2020
Nonaccrual TDRs	$	86	$	90
Performing TDRs		9,535		9,626
Total	$	9,621	$	9,716
Specific reserves on TDRs	$	—	$	—

There was one loan modified as a TDR that occurred during the six months ended June 30, 2021. No TDRs have subsequently defaulted during 2021, and the TDRs described above have not increased the allowance for credit losses and have not resulted in any charge-offs during the six months ended June 30, 2021.

The following table presents the loan by class, modified as a TDR that occurred during the six months ended June 30, 2021:

Six Months Ended June 30, 2021	Number of       Contracts		Pre-Modification Outstanding Recorded   Investment		Post-Modification Outstanding Recorded   Investment
Troubled Debt Restructurings:
Commercial and industrial		1	$	17	$	17
Total		1	$	17	$	17

The following table presents loans by class, modified as TDRs that occurred during the year ended December 31, 2020:

Year Ended December 31, 2020	Number of       Contracts		Pre-Modification Outstanding Recorded   Investment		Post-Modification Outstanding Recorded   Investment
Troubled Debt Restructurings:
Construction and development		2	$	1,289	$	1,081
Commercial and industrial		1		129		85
Commercial real estate		1		1,017		670
Total		4	$	2,435	$	1,836