LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021			December 31, 2020
Commercial and industrial	$	460,491		$	445,771
Real estate:
Construction and development		257,886			270,407
Commercial real estate		630,479			594,216
Farmland		76,867			78,508
1-4 family residential		389,542			389,096
Multi-family residential		32,090			21,701
Consumer		49,780			51,044
Agricultural		14,905			15,734
Overdrafts		327			342
Total loans⁽¹⁾		1,912,367			1,866,819
Net of:
Deferred loan fees, net		(2,612	)		(1,463	)
Allowance for credit losses		(32,770	)		(33,619	)
Total net loans⁽¹⁾	$	1,876,985		$	1,831,737

(1) Excludes accrued interest receivable on loans of $6.2 million and $7.0 million as of March 31, 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 three months ended March 31, 2021, for the year ended December 31, 2020 and for the three months ended March 31, 2020:

For the Three Months Ended March 31, 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		(504	)		(538	)		1,087			(163	)		13		133		(29	)		(31	)		32			—
Loans charged-off		(7	)		—			(758	)		—			—		—		(61	)		—			(49	)		(875	)
Recoveries		7			1			—			—			—		—		4			—			14			26
Ending balance	$	3,529		$	4,198		$	16,109		$	1,057		$	6,326	$	496	$	843		$	208		$	4		$	32,770

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 Three Months Ended March 31, 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		365			(123	)		680		196		(250	)		(170	)		85			11		35			571		1,400
Loans charged-off		(43	)		—			—		—		(59	)		—			(73	)		—		(49	)		—		(224	)
Recoveries		—			—			—		—		1			—			7			—		14			—		22
Ending balance	$	2,924		$	2,578		$	9,761	$	792	$	4,156		$	189		$	693		$	281	$	3		$	571	$	21,948

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, 2021:

March 31, 2021	2021		2020		2019			2018		2017			Prior			Revolving Loans Amortized Cost			Total
Commercial and industrial:
Pass	$	190,664	$	117,479	$	26,166		$	12,168	$	6,998		$	21,873		$	83,943		$	459,291
Special mention		—		113		—			—		34			—			—			147
Substandard		—		290		65			230		49			31			—			665
Nonaccrual		—		—		291			73		10			14			—			388
Total commercial and industrial loans	$	190,664	$	117,882	$	26,522		$	12,471	$	7,091		$	21,918		$	83,943		$	460,491

Charge-offs	$	—	$	—	$	—		$	—	$	—		$	—		$	(7	)	$	(7	)
Recoveries		—		—		—			—		—			1			6			7
Current period net	$	—	$	—	$	—		$	—	$	—		$	1		$	(1	)	$	—

Construction and development:
Pass	$	30,281	$	105,473	$	50,592		$	25,051	$	19,434		$	17,829		$	2,921		$	251,581
Special mention		—		—		—			—		978			—			—			978
Substandard		—		—		5,093			4		—			—			—			5,097
Nonaccrual		—		—		230			—		—			—			—			230
Total construction and development loans	$	30,281	$	105,473	$	55,915		$	25,055	$	20,412		$	17,829		$	2,921		$	257,886

Charge-offs	$	—	$	—	$	—		$	—	$	—		$	—		$	—		$	—
Recoveries		—		—		—			—		—			1			—			1
Current period net	$	—	$	—	$	—		$	—	$	—		$	1		$	—		$	1

Commercial real estate:
Pass	$	50,441	$	96,823	$	74,450		$	78,078	$	61,686		$	199,507		$	7,164		$	568,149
Special mention		415		550		1,621			4,112		841			1,880			—			9,419
Substandard		—		7,072		2,403			11,155		13,216			18,301			—			52,147
Nonaccrual		—		—		—			172		206			386			—			764
Total commercial real estate loans	$	50,856	$	104,445	$	78,474		$	93,517	$	75,949		$	220,074		$	7,164		$	630,479

Charge-offs	$	—	$	—	$	(17	)	$	—	$	(470	)	$	(271	)	$	—		$	(758	)
Recoveries		—		—		—			—		—			—			—			—
Current period net	$	—	$	—	$	(17	)	$	—	$	(470	)	$	(271	)	$	—		$	(758	)

Farmland:
Pass	$	6,131	$	14,242	$	11,905		$	9,365	$	5,939		$	23,702		$	5,310		$	76,594
Special mention		—		—		—			—		—			33			—			33
Substandard		—		—		—			—		—			125			—			125
Nonaccrual		—		—		—			—		—			115			—			115
Total farmland loans	$	6,131	$	14,242	$	11,905		$	9,365	$	5,939		$	23,975		$	5,310		$	76,867

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

March 31, 2021	2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost			Total
1-4 family residential:
Pass	$	20,613		$	85,266		$	60,095		$	46,771		$	33,492		$	128,204		$	12,986		$	387,427
Special mention		—			—			114			—			132			277			—			523
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			—			—			320			36			1,236			—			1,592
Total 1-4 family residential loans	$	20,613		$	85,266		$	60,209		$	47,091		$	33,660		$	129,717		$	12,986		$	389,542

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

Multi-family residential:
Pass	$	11,979		$	6,133		$	4,463		$	3,575		$	641		$	4,376		$	236		$	31,403
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			687			—			—			687
Nonaccrual		—			—			—			—			—			—			—			—
Total multi-family residential loans	$	11,979		$	6,133		$	4,463		$	3,575		$	1,328		$	4,376		$	236		$	32,090

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

Consumer and overdrafts:
Pass	$	7,655		$	20,391		$	8,978		$	7,586		$	1,297		$	921		$	2,904		$	49,732
Special mention		—			67			56			8			5			—			—			136
Substandard		—			—			—			—			—			—			—			—
Nonaccrual		—			44			72			109			14			—			—			239
Total consumer loans and overdrafts	$	7,655		$	20,502		$	9,106		$	7,703		$	1,316		$	921		$	2,904		$	50,107

Charge-offs	$	(49	)	$	(6	)	$	(38	)	$	(16	)	$	(1	)	$	—		$	—		$	(110	)
Recoveries		14			—			—			—			1			3			—			18
Current period net	$	(35	)	$	(6	)	$	(38	)	$	(16	)	$	—		$	3		$	—		$	(92	)

Agricultural:
Pass	$	390		$	2,605		$	1,581		$	1,541		$	418		$	333		$	7,871		$	14,739
Special mention		—			—			—			—			34			—			—			34
Substandard		—			—			7			9			39			22			—			77
Nonaccrual		—			—			—			47			6			2			—			55
Total agricultural loans	$	390		$	2,605		$	1,588		$	1,597		$	497		$	357		$	7,871		$	14,905

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

Total loans:
Pass	$	318,154		$	448,412		$	238,230		$	184,135		$	129,905		$	396,745		$	123,335		$	1,838,916
Special mention		415			730			1,791			4,120			2,024			2,190			—			11,270
Substandard		—			7,362			7,568			11,398			13,991			18,479			—			58,798
Nonaccrual		—			44			593			721			272			1,753			—			3,383
Total loans	$	318,569		$	456,548		$	248,182		$	200,374		$	146,192		$	419,167		$	123,335		$	1,912,367

Charge-offs	$	(49	)	$	(6	)	$	(55	)	$	(16	)	$	(471	)	$	(271	)	$	(7	)	$	(875	)
Recoveries		14			—			—			—			1			5			6			26
Total current period net (charge-offs) recoveries	$	(35	)	$	(6	)	$	(55	)	$	(16	)	$	(470	)	$	(266	)	$	(1	)	$	(849	)

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	)				$	(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 ACL, as of March 31, 2021:

	Real Estate		Non-RE		Total		Allowance for Credit Losses Allocation
Commercial and industrial	$	126	$	—	$	126	$	43
Real estate:
Construction and development		609		—		609		209
Commercial real estate		4,618		—		4,618		948
Total	$	5,353	$	—	$	5,353	$	1,200

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

March 31, 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	$	750	$	4	$	260	$	1,014	$	459,477	$	460,491	$	—
Real estate:
Construction and development		103		4,484		230		4,817		253,069		257,886		—
Commercial real estate		884		—		283		1,167		629,312		630,479		—
Farmland		370		—		—		370		76,497		76,867		—
1-4 family residential		2,758		770		101		3,629		385,913		389,542		—
Multi-family residential		—		—		—		—		32,090		32,090		—
Consumer		380		160		102		642		49,138		49,780		—
Agricultural		169		—		—		169		14,736		14,905		—
Overdrafts		—		—		—		—		327		327		—
Total	$	5,414	$	5,418	$	976	$	11,808	$	1,900,559	$	1,912,367	$	—

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:

	March 31, 2021		December 31, 2020
Nonaccrual TDRs	$	87	$	90
Performing TDRs		9,598		9,626
Total	$	9,685	$	9,716
Specific reserves on TDRs	$	—	$	—

The following table presents the loan by class, modified as a TDR that occurred during the three months ended March 31, 2021:

Three Months Ended March 31, 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