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Loans Receivable and the Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Loans by Lending Classification
The composition of loans by class of receivable was as follows:
As of December 31,
(in thousands)20232022
Agricultural$118,414 $115,320 
Commercial and industrial1,075,003 1,055,162 
Commercial real estate:
Construction & development323,195 270,991 
Farmland184,955 183,913 
Multifamily383,178 252,129 
Commercial real estate-other1,333,982 1,272,985 
Total commercial real estate2,225,310 1,980,018 
Residential real estate:
One- to four- family first liens459,798 451,210 
One- to four- family junior liens180,639 163,218 
Total residential real estate640,437 614,428 
Consumer67,783 75,596 
Loans held for investment, net of unearned income4,126,947 3,840,524 
Allowance for credit losses(51,500)(49,200)
Total loans held for investment, net$4,075,447 $3,791,324 
Schedule of Loans Based on Delinquency Status
The following tables present the amortized cost basis of loans based on delinquency status:
Age Analysis of Past-Due Financial Assets
(in thousands)Current30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past Due Total90 Days or More Past Due and Accruing
December 31, 2023
Agricultural$117,852 $338 $— $224 $118,414 $— 
Commercial and industrial1,058,301 440 401 15,861 1,075,003 — 
Commercial real estate:
Construction & development323,165 30 — — 323,195 — 
Farmland182,759 677 352 1,167 184,955 — 
Multifamily383,178 — — — 383,178 — 
Commercial real estate-other1,327,727 2,129 1,290 2,836 1,333,982 — 
Total commercial real estate2,216,829 2,836 1,642 4,003 2,225,310 — 
Residential real estate:
One- to four- family first liens453,212 3,572 1,741 1,273 459,798 468 
One- to four- family junior liens179,339 356 690 254 180,639 — 
Total residential real estate632,551 3,928 2,431 1,527 640,437 468 
Consumer67,622 118 28 15 67,783 — 
Total$4,093,155 $7,660 $4,502 $21,630 $4,126,947 $468 
December 31, 2022
Agricultural$114,922 $100 $— $298 $115,320 $— 
Commercial and industrial1,052,406 922 111 1,723 1,055,162 — 
Commercial real estate:
Construction & development270,905 86 — — 270,991 — 
Farmland182,115 729 — 1,069 183,913 — 
Multifamily252,129 — — — 252,129 — 
Commercial real estate-other1,266,874 5,574 45 492 1,272,985 — 
Total commercial real estate1,972,023 6,389 45 1,561 1,980,018 — 
Residential real estate:
One- to four- family first liens446,066 3,177 954 1,013 451,210 565 
One- to four- family junior liens161,989 301 78 850 163,218 — 
Total residential real estate608,055 3,478 1,032 1,863 614,428 565 
Consumer75,443 110 17 26 75,596 — 
Total$3,822,849 $10,999 $1,205 $5,471 $3,840,524 $565 
Schedule of Amortized Cost Basis on Nonaccrual Status
The following table presents the amortized cost basis of loans on non-accrual status, amortized cost basis of loans on non-accrual status with no allowance for credit losses recorded, and loans past due 90 days or more and still accruing by class of loan:
NonaccrualNonaccrual with no Allowance for Credit Losses90 Days or More Past Due And Accruing
(in thousands)December 31, 2023December 31, 2022December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Agricultural
$235 $377 $12 $281 $— $— 
Commercial and industrial
17,770 2,728 12,549 1,049 — — 
Commercial real estate:
Construction and development
— — — — — — 
Farmland
1,654 2,278 1,490 1,997 — — 
Multifamily
— — — — — — 
Commercial real estate-other
3,441 6,397 853 5,647 — — 
Total commercial real estate
5,095 8,675 2,343 7,644 — — 
Residential real estate:
One- to four- family first liens
1,888 2,275 455 928 468 565 
One- to four- family junior liens
876 1,165 — — — — 
Total residential real estate
2,764 3,440 455 928 468 565 
Consumer
27 36 — — — — 
Total
$25,891 $15,256 $15,359 $9,902 $468 $565 
Schedule of Credit Quality Indicator
The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator, and vintage, in addition to the current period gross write-offs by class of receivable and vintage, based on the most recent analysis performed, as of December 31, 2023. As of December 31, 2023, there were no 'loss' rated credits.
Term Loans by Origination YearRevolving Loans
December 31, 2023
(in thousands)
20232022202120202019PriorTotal
Agricultural
Pass$11,859 $12,149 $8,352 $2,752 $689 $1,139 $71,680 $108,620 
Special mention / watch266 550 670 91 5 522 3,705 5,809 
Substandard709 193 302 208 — 224 2,349 3,985 
Doubtful— — — — — — — — 
Total$12,834 $12,892 $9,324 $3,051 $694 $1,885 $77,734 $118,414 
Commercial and industrial
Pass$176,021 $224,924 $193,011 $117,326 $25,555 $116,661 $147,690 $1,001,188 
Special mention / watch2,541 416 3,209 3,385 193 272 14,692 24,708 
Substandard897 2,921 2,010 561 8,507 29,432 4,779 49,107 
Doubtful— — — — — — — — 
Total$179,459 $228,261 $198,230 $121,272 $34,255 $146,365 $167,161 $1,075,003 
CRE - Construction and development
Pass$99,803 $163,126 $43,189 $3,393 $821 $700 $9,552 $320,584 
Special mention / watch1,097 — 464 — — — 467 2,028 
Substandard343 240 — — — — — 583 
Doubtful— — — — — — — — 
Total$101,243 $163,366 $43,653 $3,393 $821 $700 $10,019 $323,195 
CRE - Farmland
Pass$25,666 $44,907 $47,068 $18,863 $6,587 $14,845 $1,642 $159,578 
Special mention / watch1,229 6,898 2,409 5,982 — 965 276 17,759 
Substandard1,830 210 1,542 1,052 926 2,029 29 7,618 
Doubtful— — — — — — — — 
Total$28,725 $52,015 $51,019 $25,897 $7,513 $17,839 $1,947 $184,955 
CRE - Multifamily
Pass$32,077 $96,969 $111,032 $77,532 $8,701 $6,508 $4,208 $337,027 
Special mention / watch5,318 1,237 277 18,984 7,850 4,586 — 38,252 
Substandard— — 7,572 327 — — — 7,899 
Doubtful— — — — — — — — 
Total$37,395 $98,206 $118,881 $96,843 $16,551 $11,094 $4,208 $383,178 
CRE - Other
Pass$199,698 $295,066 $256,718 $250,676 $77,509 $90,170 $51,827 $1,221,664 
Special mention / watch364 1,306 3,300 4,823 4,282 2,395 3,856 20,326 
Substandard325 26,555 19,253 19,103 8,242 17,876 638 91,992 
Doubtful— — — — — — — — 
Total$200,387 $322,927 $279,271 $274,602 $90,033 $110,441 $56,321 $1,333,982 
RRE - One- to four- family first liens
Pass/Performing$62,644 $125,777 $92,767 $54,028 $19,674 $81,660 $13,283 $449,833 
Special mention / watch629 716 36 620 1,827 319 — 4,147 
Substandard/Nonperforming1,156 191 738 165 164 3,404 — 5,818 
Doubtful— — — — — — — — 
Total$64,429 $126,684 $93,541 $54,813 $21,665 $85,383 $13,283 $459,798 
RRE - One- to four- family junior liens
Performing$23,551 $29,919 $18,733 $7,292 $2,590 $7,867 $89,810 $179,762 
Nonperforming— 192 — 25 23 637 — 877 
Total$23,551 $30,111 $18,733 $7,317 $2,613 $8,504 $89,810 $180,639 
Consumer
Performing$26,028 $14,319 $10,042 $4,421 $1,451 $7,350 $4,145 $67,756 
Nonperforming— 22 — — 3 2 — 27 
Total$26,028 $14,341 $10,042 $4,421 $1,454 $7,352 $4,145 $67,783 
Term Loans by Origination YearRevolving Loans
December 31, 2023
(in thousands)
20232022202120202019PriorTotal
Total by Credit Quality Indicator Category
Pass$607,768 $962,918 $752,137 $524,570 $139,536 $311,683 $299,882 $3,598,494 
Special mention / watch11,444 11,123 10,365 33,885 14,157 9,059 22,996 113,029 
Substandard5,260 30,310 31,417 21,416 17,839 52,965 7,795 167,002 
Doubtful— — — — — — — — 
Performing49,579 44,238 28,775 11,713 4,041 15,217 93,955 247,518 
Nonperforming— 214 — 25 26 639 — 904 
Total$674,051 $1,048,803 $822,694 $591,609 $175,599 $389,563 $424,628 $4,126,947 
Term Loans by Origination YearRevolving Loans
December 31, 2023
(in thousands)
20232022202120202019PriorTotal
Year-to-date Current Period Gross Write-offs
Agricultural$— $8 $1 $17 $2 $— $— $28 
Commercial and industrial239 343 223 133 464 45 — 1,447 
CRE - Construction and development— — — — — — — — 
CRE - Farmland— — — — — — — — 
CRE - Multifamily— — — — — — — — 
CRE - Other— — — — — 2,337 — 2,337 
RRE - One-to-four-family first liens— — — — — 36 — 36 
RRE - One-to-four-family junior liens— 19 — — — — — 19 
Consumer— 621 30 12 12 10 685 
Total Current Period Gross Write-offs$239 $991 $254 $162 $478 $2,428 $— $4,552 
The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of December 31, 2022. As of December 31, 2022, there were no 'loss' rated credits.
Term Loans by Origination YearRevolving Loans
December 31, 2022
(in thousands)
20222021202020192018PriorTotal
Agricultural
Pass$20,279 $12,511 $5,398 $2,883 $939 $1,063 $65,395 $108,468 
Special mention / watch143 1,012 115 36 — 604 1,655 3,565 
Substandard48 646 366 4 7 302 1,914 3,287 
Doubtful— — — — — — — — 
Total$20,470 $14,169 $5,879 $2,923 $946 $1,969 $68,964 $115,320 
Commercial and industrial
Pass$262,500 $232,263 $151,567 $48,199 $27,680 $115,877 $163,205 $1,001,291 
Special mention / watch3,975 3,574 5,465 592 3,299 1,864 12,299 31,068 
Substandard556 166 1,172 756 556 18,585 1,012 22,803 
Doubtful— — — — — — — — 
Total$267,031 $236,003 $158,204 $49,547 $31,535 $136,326 $176,516 $1,055,162 
CRE - Construction and development
Pass$144,597 $73,832 $19,324 $989 $1,058 $549 $28,069 $268,418 
Special mention / watch1,787 499 — — — — — 2,286 
Substandard281 — — — — 6 — 287 
Doubtful— — — — — — — — 
Total$146,665 $74,331 $19,324 $989 $1,058 $555 $28,069 $270,991 
CRE - Farmland
Pass$55,251 $52,802 $28,744 $7,266 $8,406 $12,895 $1,946 $167,310 
Special mention / watch3,058 2,229 1,470 — 225 21 1,693 8,696 
Substandard148 1,974 1,192 1,136 1,459 1,998 — 7,907 
Doubtful— — — — — — — — 
Total$58,457 $57,005 $31,406 $8,402 $10,090 $14,914 $3,639 $183,913 
CRE - Multifamily
Pass$31,018 $93,907 $84,573 $17,137 $2,549 $5,161 $49 $234,394 
Special mention / watch1,000 — 1,567 — 5,931 1,178 — 9,676 
Substandard— 7,725 334 — — — — 8,059 
Doubtful— — — — — — — — 
Total$32,018 $101,632 $86,474 $17,137 $8,480 $6,339 $49 $252,129 
CRE - Other
Pass$322,753 $314,376 $296,368 $79,408 $31,041 $81,708 $51,064 $1,176,718 
Special mention / watch8,858 3,399 13,245 10,365 1,137 8,122 2,518 47,644 
Substandard752 589 19,702 13,294 10,197 4,089 — 48,623 
Doubtful— — — — — — — — 
Total$332,363 $318,364 $329,315 $103,067 $42,375 $93,919 $53,582 $1,272,985 
RRE - One- to four- family first liens
Pass/ performing$139,289 $103,534 $63,627 $23,831 $21,868 $77,967 $11,438 441,554 
Special mention / watch1,074 611 672 1,920 150 702 — 5,129 
Substandard/ nonperforming175 438 174 175 674 2,891 — 4,527 
Doubtful— — — — — — — — 
Total$140,538 $104,583 $64,473 $25,926 $22,692 $81,560 $11,438 $451,210 
RRE - One- to four- family junior liens
Performing$37,296 $22,908 $8,906 $3,058 $3,757 $6,330 $79,798 $162,053 
Nonperforming— 23 31 179 756 76 100 1,165 
Total$37,296 $22,931 $8,937 $3,237 $4,513 $6,406 $79,898 $163,218 
Consumer
Performing$32,584 $18,979 $7,966 $3,489 $1,646 $6,641 $4,255 $75,560 
Nonperforming— 2 16 9 4 5 — 36 
Total$32,584 $18,981 $7,982 $3,498 $1,650 $6,646 $4,255 $75,596 
Total by Credit Quality Indicator Category
Pass$975,687 $883,225 $649,601 $179,713 $93,541 $295,220 $321,166 $3,398,153 
Special mention / watch19,895 11,324 22,534 12,913 10,742 12,491 18,165 108,064 
Substandard1,960 11,538 22,940 15,365 12,893 27,871 2,926 95,493 
Doubtful— — — — — — — — 
Performing69,880 41,887 16,872 6,547 5,403 12,971 84,053 237,613 
Nonperforming— 25 47 188 760 81 100 1,201 
Total$1,067,422 $947,999 $711,994 $214,726 $123,339 $348,634 $426,410 $3,840,524 
Schedule of Changes in Allowance for Credit Losses
The changes in the allowance for credit losses by portfolio segment were as follows:
For the Years Ended December 31, 2023, 2022 and 2021
(in thousands)AgriculturalCommercial and IndustrialCommercial Real EstateResidential Real EstateConsumerTotal
2023
Beginning balance$923 $22,855 $20,123 $4,678 $621 $49,200 
Charge-offs
(28)(1,447)(2,337)(55)(685)(4,552)
Recoveries
203 373 20 27 180 803 
Credit loss expense (benefit)(1)
(485)(38)5,953 112 507 6,049 
Ending balance$613 $21,743 $23,759 $4,762 $623 $51,500 
2022
Beginning balance$667 $17,294 $26,120 $4,010 $609 $48,700 
     PCD allowance established in acquisition512 1,473 1,227 159 — $3,371 
Charge-offs
(326)(2,051)(4,328)(195)(756)(7,656)
Recoveries
11 682 160 86 154 1,093 
Credit loss expense (benefit)(1)
59 5,457 (3,056)618 614 3,692 
Ending balance$923 $22,855 $20,123 $4,678 $621 $49,200 
2021
Beginning balance$1,346 $15,689 $32,640 $4,882 $943 $55,500 
Charge-offs
(170)(1,015)(602)(107)(438)(2,332)
Recoveries
149 1,604 742 88 185 2,768 
Credit loss expense (benefit)(1)
(658)1,016 (6,660)(853)(81)(7,236)
Ending balance$667 $17,294 $26,120 $4,010 $609 $48,700 
(1)The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss benefit of $0.2 million, credit loss expense of $0.8 million, and credit loss benefit of $0.1 million related to off-balance sheet credit exposures for the years ended December 31, 2023, December 31, 2022, and December 30, 2021, respectively.
The composition of allowance for credit losses by portfolio segment based on evaluation method was as follows:
As of December 31, 2023
(in thousands)AgriculturalCommercial and IndustrialCommercial Real EstateResidential Real EstateConsumerTotal
Loans held for investment, net of unearned income
Individually evaluated for impairment$11 $17,231 $10,932 $983 $— $29,157 
Collectively evaluated for impairment118,403 1,057,772 2,214,378 639,454 67,783 4,097,790 
Total$118,414 $1,075,003 $2,225,310 $640,437 $67,783 $4,126,947 
Allowance for credit losses
Individually evaluated for impairment$— $2,616 $705 $16 $— $3,337 
Collectively evaluated for impairment613 19,127 23,054 4,746 623 48,163 
Total$613 $21,743 $23,759 $4,762 $623 $51,500 

As of December 31, 2022
(in thousands)AgriculturalCommercial and IndustrialCommercial Real EstateResidential Real EstateConsumerTotal
Loans held for investment, net of unearned income
Individually evaluated for impairment$2,531 $2,184 $15,768 $1,650 $— $22,133 
Collectively evaluated for impairment112,789 1,052,978 1,964,250 612,778 75,596 3,818,391 
Total$115,320 $1,055,162 $1,980,018 $614,428 $75,596 $3,840,524 
Allowance for loan losses
Individually evaluated for impairment$500 $600 $705 $180 $— $1,985 
Collectively evaluated for impairment423 22,255 19,418 4,498 621 47,215 
Total$923 $22,855 $20,123 $4,678 $621 $49,200 
Schedule of Financing Receivable, Collateral Depend Loans
The following tables present the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:

As of December 31, 2023
Primary Type of Collateral
(in thousands)Real EstateEquipmentOtherTotalACL Allocation
Agricultural$11 $— $— $11 $— 
Commercial and industrial15,991 — 1,240 17,231 2,616 
Commercial real estate:
     Construction and development— — — — — 
     Farmland5,403 — — 5,403 — 
     Multifamily— — — — — 
     Commercial real estate-other5,350 — 179 5,529 705 
Residential real estate:
     One- to four- family first liens481 — — 481 — 
     One- to four- family junior liens— — 502 502 16 
Consumer— — — — — 
        Total$27,236 $— $1,921 $29,157 $3,337 
As of December 31, 2022
Primary Type of Collateral
(in thousands)Real EstateEquipmentOtherTotalACL Allocation
Agricultural$68 $2,463 $— $2,531 $500 
Commercial and industrial856 736 592 2,184 600 
Commercial real estate:
     Construction and development— — — — — 
      Farmland4,515 — — 4,515 — 
      Multifamily— — — — — 
      Commercial real estate-other11,006 — 247 11,253 705 
Residential real estate:
     One- to four- family first liens929 — — 929 — 
     One- to four- family junior liens— — 721 721 180 
Consumer— — — — — 
        Total$17,374 $3,199 $1,560 $22,133 $1,985 
Schedule of TDRs by Class of Financing Receivable
The following table presents the amortized cost basis of loans as of December 31, 2023 that were modified during the year ended December 31, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification:
Combination:
(dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionTerm Extension & Interest Rate ReductionPrincipal Forgiveness & Term ExtensionPrincipal Forgiveness, Term Extension, & Interest Rate ReductionPayment Delay & Term ExtensionTotal Class of Financing Receivable
Agricultural$— $10 $— $— $— $— $— $— 0.01 %
Commercial and industrial— 260 2,888 — 95 300 — 185 0.35 %
CRE - Construction and development— — 583 — — — — — 0.18 %
CRE - Farmland— — 1,823 — — — — — 0.99 %
CRE - Multifamily— — — — — — — — — %
CRE - Other— 5,468 1,165 — — — — — 0.50 %
RRE - One- to four- family first liens— — — — — — — — — %
RRE - One- to four- family junior liens— — 14 — — — — — 0.01 %
Consumer— — — — — — — — — %
Total$— $5,738 $6,473 $— $95 $300 $— $185 
The following table presents the performance as of December 31, 2023 of loans that were modified while the borrower was experiencing financial difficulty at the time of modification in the last 12 months:

(in thousands)Current30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal
Agricultural
$— $10 $— $— $10 
Commercial and industrial
3,653 — — 75 3,728 
CRE - Construction and development
583 — — — 583 
CRE - Farmland
1,471 — 352 — 1,823 
CRE - Multifamily
— — — — — 
CRE - Other
6,633 — — — 6,633 
RRE - One- to four- family first liens
— — — — — 
RRE - One- to four- family junior liens
14 — — — 14 
Consumer
— — — — — 
Total
$12,354 $10 $352 $75 $12,791 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the year ended December 31, 2023:


(dollars in thousands)
Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (Months)
Commercial and industrial
$63 1.25 %7.4
CRE - Construction and development
— — %15.9
CRE - Farmland
— — %1.3
CRE - Other
18 — %5.6
RRE - One- to four- family first liens
— — %3.9
RRE - One- to four- family junior liens
— — %49.8
Total
$81 1.25 %5.3