Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

LOANS AND ALLOWANCE FOR CREDIT LOSSES

3. LOANS AND ALLOWANCE FOR CREDIT LOSSES:

For the year ended December 31, 2023, the tables to follow outline the Company’s loan portfolio by the ten portfolio segments where applicable.

Loans held-for-investment by portfolio segment are as follows (dollars in thousands):

	December 31,
	2023			2022
Commercial:
C&I *	$	1,164,811		$	917,317
Municipal		214,850			221,090
Total Commercial		1,379,661			1,138,407
Agricultural		84,890			76,947
Real Estate:
Construction & Development		963,158			959,426
Farm		344,954			306,322
Non-Owner Occupied CRE		827,969			732,089
Owner Occupied CRE		1,037,281			954,400
Residential		1,834,593			1,575,758
Total Real Estate		5,007,955			4,527,995
Consumer:
Auto		521,859			550,635
Non-Auto		154,426			147,884
Total Consumer		676,285			698,519
Total Loans		7,148,791			6,441,868
Less: Allowance for credit losses		(88,734	)		(75,834	)
Loans, net	$	7,060,057		$	6,366,034

* All disclosures for the C&I loan segment include PPP loan balances, net of deferred fees, as disclosed on the face of the consolidated balance sheet.

Outstanding loan balances at December 31, 2023 and 2022, are net of unearned income, including net deferred loan fees.

Our subsidiary bank has established a line of credit with the Federal Home Loan Bank of Dallas (“FHLB”) to provide liquidity and meet pledging requirements for those customers eligible to have securities pledged to secure certain uninsured deposits. At December 31, 2023, this available line of credit was $1,858,173,000. At December 31, 2023, there was $813,000,000 used on the line advance for undisbursed commitments (letters of credit) used to secure public funds. At December 31, 2023, $4,980,020,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit.

The Company’s nonaccrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (dollars in thousands):

	December 31,
	2023		2022
Nonaccrual loans	$	33,609	$	24,325
Loans still accruing and past due 90 days or more		1,004		—
Total nonperforming loans (1)	$	34,613	$	24,325

(1) With the adoption of ASU 2022-02, effective January 1, 2023, troubled debt restructuring ("TDR") accounting has been eliminated.

The Company had $35,096,000 and $24,325,000 in nonaccrual, past due 90 days or more and still accruing, and foreclosed assets at December 31, 2023 and 2022, respectively. Nonaccrual loans totaled $33,609,000 and $24,325,000 at December 31, 2023 and 2022, respectively, and consisted of the following (in thousands):

	December 31,
	2023		2022
Commercial:
C&I	$	4,132	$	5,057
Municipal		—		—
Total Commercial		4,132		5,057
Agricultural		155		324
Real Estate:
Construction & Development		1,444		1,567
Farm		4,804		85
Non-Owner Occupied CRE		8,022		2,321
Owner Occupied CRE		6,822		7,092
Residential		7,649		7,419
Total Real Estate		28,741		18,484
Consumer:
Auto		464		429
Non-Auto		117		31
Total Consumer		581		460
Total	$	33,609	$	24,325

The Company recognized interest income on nonaccrual loans prior to being recognized as nonaccrual of approximately $1,714,000, $1,607,000 and $2,122,000 during the years ended December 31, 2023, 2022 and 2021, respectively.

No significant additional funds are committed to be advanced in connection with nonaccrual loans as of December 31, 2023.

Summary information on the allowance for credit losses for the year ended December 31, 2023 and 2022, are outlined by portfolio segment in the following tables (in thousands):

Year-ended December 31, 2023	C&I			Municipal			Agricultural			Construction & Development		Farm
Beginning balance	$	16,129		$	1,026		$	1,041		$	26,443	$	1,957
Provision for loan losses		1,118			(831	)		(37	)		2,004		957
Recoveries		267			—			286			106		—
Charge-offs		(1,816	)		—			(9	)		—		—
Ending balance	$	15,698		$	195		$	1,281		$	28,553	$	2,914

Year-ended December 31, 2023 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE			Residential			Auto			Non-Auto			Total
Beginning balance	$	9,075	$	9,928		$	9,075		$	845		$	315		$	75,834
Provision for loan losses		4,279		3,668			2,813			573			506			15,050
Recoveries		71		227			24			398			170			1,549
Charge-offs		—		(10	)		(258	)		(1,006	)		(600	)		(3,699	)
Ending balance	$	13,425	$	13,813		$	11,654		$	810		$	391		$	88,734

Year-ended December 31, 2022	C&I			Municipal		Agricultural			Construction & Development			Farm
Beginning balance	$	12,280		$	348	$	1,597		$	17,627		$	663
Provision for loan losses		3,485			678		(702	)		8,916			1,294
Recoveries		953			—		155			—			—
Charge-offs		(589	)		—		(9	)		(100	)		—
Ending balance	$	16,129		$	1,026	$	1,041		$	26,443		$	1,957

Year-ended December 31, 2022 (continued)	Non-Owner Occupied CRE			Owner Occupied CRE			Residential			Auto			Non-Auto			Total
Beginning balance	$	10,722		$	10,828		$	8,133		$	896		$	371		$	63,465
Provision for loan losses		(2,499	)		(1,062	)		1,014			252			164			11,540
Recoveries		852			699			114			293			215			3,281
Charge-offs		—			(537	)		(186	)		(596	)		(435	)		(2,452	)
Ending balance	$	9,075		$	9,928		$	9,075		$	845		$	315		$	75,834

Additionally, the Company records a reserve for unfunded commitments in other liabilities which totaled $7,903,000 and $12,323,000 at December 31, 2023 and 2022, respectively. The $15,050,000 provision for loan losses in 2023 above is combined with the reversal of provision for unfunded commitments of $4,419,000 and reported in the aggregate under the provision for credit losses in the statement of earnings for the year ended December 31, 2023. The provision for loan losses above of $11,540,000 in 2022 is combined with the provision for unfunded commitments of $5,887,000 and reported in the aggregate under the provision for credit losses in the statement of earnings for the year ended December 31, 2022.

The Company’s loans that are individually evaluated for credit losses (both collateral and non-collateral dependent) and their related allowances as of December 31, 2023 and December 31, 2022, are summarized in the following table by loan segment (in thousands):

December 31, 2023	Collateral Dependent Loans Individually Evaluated for Credit Losses Without an Allowance		Collateral Dependent Loans Individually Evaluated for Credit Losses With an Allowance		Non-Collateral Dependent Loans Individually Evaluated for Credit Losses		Total Loans Individually Evaluated for Credit Losses		Related Allowance on Collateral Dependent Loans		Related Allowance on Non- Collateral Dependent Loans		Total Allowance for Credit Losses on Loans Individually Evaluated for Credit Losses
Commercial:
C&I	$	1,322	$	2,810	$	18,633	$	22,765	$	1,363	$	4,495	$	5,858
Municipal		—		—		733		733		—		—		—
Total Commercial		1,322		2,810		19,366		23,498		1,363		4,495		5,858
Agricultural		57		98		1,304		1,459		50		700		750
Real Estate:
Construction & Development		758		686		22,545		23,989		148		2,253		2,401
Farm		—		4,804		1,362		6,166		937		57		994
Non-Owner Occupied CRE		1,919		6,103		29,117		37,139		700		2,984		3,684
Owner Occupied CRE		4,661		2,161		35,746		42,568		232		1,431		1,663
Residential		3,909		3,740		30,257		37,906		360		1,799		2,159
Total Real Estate		11,247		17,494		119,027		147,768		2,377		8,524		10,901
Consumer:
Auto		—		464		2,125		2,589		1		3		4
Non-Auto		—		117		782		899		—		60		60
Total Consumer		—		581		2,907		3,488		1		63		64
Total	$	12,626	$	20,983	$	142,604	$	176,213	$	3,791	$	13,782	$	17,573

December 31, 2022	Collateral Dependent Loans Individually Evaluated for Credit Losses Without an Allowance		Collateral Dependent Loans Individually Evaluated for Credit Losses With an Allowance		Non-Collateral Dependent Loans Individually Evaluated for Credit Losses		Total Loans Individually Evaluated for Credit Losses		Related Allowance on Collateral Dependent Loans		Related Allowance on Non- Collateral Dependent Loans		Total Allowance for Credit Losses on Loans Individually Evaluated for Credit Losses
Commercial:
C&I	$	—	$	5,057	$	24,325	$	29,382	$	3,513	$	4,885	$	8,398
Municipal		—		—		58		58		—		—		—
Total Commercial		—		5,057		24,383		29,440		3,513		4,885		8,398
Agricultural		116		209		354		679		122		276		398
Real Estate:
Construction & Development		577		990		4,873		6,440		193		112		305
Farm		—		85		1,578		1,663		2		34		36
Non-Owner Occupied CRE		2,062		259		36,037		38,358		16		2,341		2,357
Owner Occupied CRE		4,363		2,728		29,115		36,206		91		1,509		1,600
Residential		5,132		2,268		28,583		35,983		229		1,215		1,444
Total Real Estate		12,134		6,330		100,186		118,650		531		5,211		5,742
Consumer:
Auto		—		429		931		1,360		1		1		2
Non-Auto		—		31		538		569		—		1		1
Total Consumer		—		460		1,469		1,929		1		2		3
Total	$	12,250	$	12,056	$	126,392	$	150,698	$	4,167	$	10,374	$	14,541

The Company’s allowance for loans that are individually evaluated for credit losses and collectively evaluated for credit losses as of December 31, 2023 and December 31, 2022, are summarized in the following table by loan segment (in thousands). Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

December 31, 2023	C&I		Municipal		Agricultural		Construction & Development		Farm
Loans individually evaluated for credit losses	$	5,858	$	—	$	750	$	2,401	$	994
Loans collectively evaluated for credit losses		9,840		195		531		26,152		1,920
Total	$	15,698	$	195	$	1,281	$	28,553	$	2,914

December 31, 2023 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	3,684	$	1,663	$	2,159	$	4	$	60	$	17,573
Loans collectively evaluated for credit losses		9,741		12,150		9,495		806		331		71,161
Total	$	13,425	$	13,813	$	11,654	$	810	$	391	$	88,734

December 31, 2022	C&I		Municipal		Agricultural		Construction & Development		Farm
Loans individually evaluated for credit losses	$	8,398	$	—	$	398	$	305	$	36
Loans collectively evaluated for credit losses		7,731		1,026		643		26,138		1,921
Total	$	16,129	$	1,026	$	1,041	$	26,443	$	1,957

December 31, 2022 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	2,357	$	1,600	$	1,444	$	2	$	1	$	14,541
Loans collectively evaluated for credit losses		6,718		8,328		7,631		843		314		61,293
Total	$	9,075	$	9,928	$	9,075	$	845	$	315	$	75,834

The Company’s recorded investment in loans as of December 31, 2023 and December 31, 2022, related to the balance in the allowance for credit losses follows below (in thousands).

December 31, 2023	C&I		Municipal		Agriculture		Construction & Development		Farm
Loans individually evaluated for credit losses	$	22,765	$	733	$	1,459	$	23,989	$	6,166
Loans collectively evaluated for credit losses		1,142,046		214,117		83,431		939,169		338,788
Total	$	1,164,811	$	214,850	$	84,890	$	963,158	$	344,954

December 31, 2023 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	37,139	$	42,568	$	37,906	$	2,589	$	899	$	176,213
Loans collectively evaluated for credit losses		790,830		994,713		1,796,687		519,270		153,527		6,972,578
Total	$	827,969	$	1,037,281	$	1,834,593	$	521,859	$	154,426	$	7,148,791

December 31, 2022	C&I		Municipal		Agriculture		Construction & Development		Farm
Loans individually evaluated for credit losses	$	29,382	$	58	$	679	$	6,440	$	1,663
Loans collectively evaluated for credit losses		887,935		221,032		76,268		952,986		304,659
Total	$	917,317	$	221,090	$	76,947	$	959,426	$	306,322

December 31, 2022 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	38,358	$	36,206	$	35,983	$	1,360	$	569	$	150,698
Loans collectively evaluated for credit losses		693,731		918,194		1,539,775		549,275		147,315		6,291,170
Total	$	732,089	$	954,400	$	1,575,758	$	550,635	$	147,884	$	6,441,868

From a credit risk standpoint, the Company rates its loans in one of five categories: (i) pass, (ii) special mention, (iii) substandard, (iv) doubtful or (v) loss (which are charged-off).

The ratings of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on our credits as part of our on-going monitoring of the credit quality of our loan portfolio. Ratings are adjusted to reflect the degree of risk and loss that are felt to be inherent in each credit as of each reporting period. Our methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s

position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on nonaccrual.

The following tables summarize the Company’s internal ratings of its loans held-for-investment, including the year of origination, by portfolio segments, at December 31, 2023 (in millions):

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
C&I
Risk rating:
Pass	$	720	$	276	$	73	$	36	$	14	$	23	$	—	$	1,142
Special mention		1		1		—		—		1		—		—		3
Substandard		12		2		2		1		1		2		—		20
Doubtful		—		—		—		—		—		—		—		—
Total	$	733	$	279	$	75	$	37	$	16	$	25	$	—	$	1,165
Year-to-Date Gross Charge-Offs	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	1

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Municipal
Risk rating:
Pass	$	25	$	83	$	15	$	10	$	1	$	80	$	—	$	214
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		1		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	25	$	83	$	16	$	10	$	1	$	80	$	—	$	215
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Agricultural
Risk rating:
Pass	$	63	$	15	$	4	$	1	$	1	$	—	$	—	$	84
Special mention		—		—		—		—		—		—		—		—
Substandard		1		—		—		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	64	$	15	$	4	$	1	$	1	$	—	$	—	$	85
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Construction & Development
Risk rating:
Pass	$	515	$	311	$	78	$	20	$	9	$	6	$	—	$	939
Special mention		8		2		—		—		—		—		—		10
Substandard		9		4		1		—		—		—		—		14
Doubtful		—		—		—		—		—		—		—		—
Total	$	532	$	317	$	79	$	20	$	9	$	6	$	—	$	963
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Farm
Risk rating:
Pass	$	101	$	111	$	73	$	24	$	8	$	22	$	—	$	339
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		5		—		1		—		6
Doubtful		—		—		—		—		—		—		—		—
Total	$	101	$	111	$	73	$	29	$	8	$	23	$	—	$	345
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Non-Owner Occupied CRE
Risk rating:
Pass	$	167	$	232	$	172	$	106	$	41	$	73	$	—	$	791
Special mention		—		5		1		—		—		2		—		8
Substandard		2		1		2		7		13		4		—		29
Doubtful		—		—		—		—		—		—		—		—
Total	$	169	$	238	$	175	$	113	$	54	$	79	$	—	$	828
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Owner Occupied CRE
Risk rating:
Pass	$	154	$	305	$	217	$	114	$	62	$	142	$	—	$	994
Special mention		1		1		4		—		1		1		—		8
Substandard		3		6		4		—		7		15		—		35
Doubtful		—		—		—		—		—		—		—		—
Total	$	158	$	312	$	225	$	114	$	70	$	158	$	—	$	1,037
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Residential
Risk rating:
Pass	$	477	$	415	$	313	$	158	$	67	$	229	$	138	$	1,797
Special mention		1		2		2		2		—		3		1		11
Substandard		4		4		3		3		3		7		3		27
Doubtful		—		—		—		—		—		—		—		—
Total	$	482	$	421	$	318	$	163	$	70	$	239	$	142	$	1,835
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Auto
Risk rating:
Pass	$	195	$	212	$	74	$	26	$	10	$	2	$	—	$	519
Special mention		—		—		—		—		—		—		—		—
Substandard		—		1		1		1		—		—		—		3
Doubtful		—		—		—		—		—		—		—		—
Total	$	195	$	213	$	75	$	27	$	10	$	2	$	—	$	522
Year-to-Date Gross Charge-Offs	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	1

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Non-Auto
Risk rating:
Pass	$	71	$	47	$	22	$	4	$	1	$	1	$	7	$	153
Special mention		—		—		—		—		—		—		—		—
Substandard		1		—		—		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	72	$	47	$	22	$	4	$	1	$	1	$	7	$	154
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amort Cost Basis		Total
Total Loans
Risk rating:
Pass	$	2,488	$	2,007	$	1,041	$	499	$	214	$	578	$	145	$	6,972
Special mention		11		11		7		2		2		6		1		40
Substandard		32		18		14		17		24		29		3		137
Doubtful		—		—		—		—		—		—		—		—
Total	$	2,531	$	2,036	$	1,062	$	518	$	240	$	613	$	149	$	7,149
Year-to-Date Gross Charge-Offs	$	—	$	1	$	1	$	—	$	—	$	—	$	—	$	2

The following tables summarize the Company’s internal ratings of its loans held-for-investment, including the year of origination by portfolio segments, at December 31, 2022 (in millions):

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
C&I
Risk rating:
Pass	$	627	$	157	$	52	$	22	$	16	$	13	$	—	$	887
Special mention		4		1		2		1		—		—		—		8
Substandard		13		5		2		1		1		—		—		22
Doubtful		—		—		—		—		—		—		—		—
Total	$	644	$	163	$	56	$	24	$	17	$	13	$	—	$	917

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Municipal
Risk rating:
Pass	$	79	$	19	$	15	$	4	$	20	$	84	$	—	$	221
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	79	$	19	$	15	$	4	$	20	$	84	$	—	$	221

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Agricultural
Risk rating:
Pass	$	60	$	9	$	3	$	2	$	1	$	1	$	—	$	76
Special mention		—		—		—		—		—		—		—		—
Substandard		—		1		—		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	60	$	10	$	3	$	2	$	1	$	1	$	—	$	77

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Construction & Development
Risk rating:
Pass	$	638	$	218	$	70	$	13	$	8	$	7	$	—	$	954
Special mention		1		—		—		—		—		—		—		1
Substandard		4		1		—		—		—		—		—		5
Doubtful		—		—		—		—		—		—		—		—
Total	$	643	$	219	$	70	$	13	$	8	$	7	$	—	$	960

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Farm
Risk rating:
Pass	$	147	$	85	$	32	$	11	$	8	$	21	$	—	$	304
Special mention		—		—		—		—		—		—		—		—
Substandard		1		—		—		—		—		1		—		2
Doubtful		—		—		—		—		—		—		—		—
Total	$	148	$	85	$	32	$	11	$	8	$	22	$	—	$	306

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Non-Owner Occupied CRE
Risk rating:
Pass	$	258	$	191	$	100	$	49	$	21	$	75	$	—	$	694
Special mention		—		1		1		11		—		7		—		20
Substandard		8		1		1		2		1		5		—		18
Doubtful		—		—		—		—		—		—		—		—
Total	$	266	$	193	$	102	$	62	$	22	$	87	$	—	$	732

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Owner Occupied CRE
Risk rating:
Pass	$	316	$	224	$	128	$	74	$	63	$	113	$	—	$	918
Special mention		1		—		1		8		—		1		—		11
Substandard		1		2		1		2		9		10		—		25
Doubtful		—		—		—		—		—		—		—		—
Total	$	318	$	226	$	130	$	84	$	72	$	124	$	—	$	954

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Residential
Risk rating:
Pass	$	513	$	355	$	173	$	82	$	64	$	214	$	139	$	1,540
Special mention		1		3		2		—		—		3		1		10
Substandard		6		3		2		2		1		9		3		26
Doubtful		—		—		—		—		—		—		—		—
Total	$	520	$	361	$	177	$	84	$	65	$	226	$	143	$	1,576

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Auto
Risk rating:
Pass	$	331	$	131	$	55	$	25	$	6	$	2	$	—	$	550
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		1		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	331	$	131	$	56	$	25	$	6	$	2	$	—	$	551

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Non-Auto
Risk rating:
Pass	$	85	$	41	$	9	$	3	$	1	$	1	$	7	$	147
Special mention		—		—		—		—		—		—		—		—
Substandard		—		1		—		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	85	$	42	$	9	$	3	$	1	$	1	$	7	$	148

December 31,	2022		2021		2020		2019		2018		Prior		Revolving Loans Amort Cost Basis		Total
Total Loans
Risk rating:
Pass	$	3,054	$	1,430	$	637	$	285	$	208	$	531	$	146	$	6,291
Special mention		7		5		6		20		—		11		1		50
Substandard		33		14		7		7		12		25		3		101
Doubtful		—		—		—		—		—		—		—		—
Total	$	3,094	$	1,449	$	650	$	312	$	220	$	567	$	150	$	6,442

At December 31, 2023 and 2022, the Company’s past due loans are as follows (in thousands):

December 31, 2023	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial:
C&I	$	8,789	$	1,624	$	1,700	$	12,113	$	1,152,698	$	1,164,811	$	141
Municipal		102		—		—		102		214,748		214,850		—
Total Commercial		8,891		1,624		1,700		12,215		1,367,446		1,379,661		141
Agricultural		850		246		4		1,100		83,790		84,890		—
Real Estate:
Construction & Development		8,887		2,115		1,856		12,858		950,300		963,158		863
Farm		1,024		195		—		1,219		343,735		344,954		—
Non-Owner Occupied CRE		3,565		—		—		3,565		824,404		827,969		—
Owner Occupied CRE		2,818		240		1,823		4,881		1,032,400		1,037,281		—
Residential		12,293		828		2,816		15,937		1,818,656		1,834,593		—
Total Real Estate		28,587		3,378		6,495		38,460		4,969,495		5,007,955		863
Consumer:
Auto		1,482		251		24		1,757		520,102		521,859		—
Non-Auto		341		51		—		392		154,034		154,426		—
Total Consumer		1,823		302		24		2,149		674,136		676,285		—
Total	$	40,151	$	5,550	$	8,223	$	53,924	$	7,094,867	$	7,148,791	$	1,004

December 31, 2022	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial:
C&I	$	3,924	$	297	$	1,646	$	5,867	$	911,450	$	917,317	$	—
Municipal		76		783		—		859		220,231		221,090		—
Total Commercial		4,000		1,080		1,646		6,726		1,131,681		1,138,407		—
Agricultural		243		—		—		243		76,704		76,947		—
Real Estate:
Construction & Development		3,751		—		175		3,926		955,500		959,426		—
Farm		668		—		—		668		305,654		306,322		—
Non-Owner Occupied CRE		1,444		160		—		1,604		730,485		732,089		—
Owner Occupied CRE		1,151		—		—		1,151		953,249		954,400		—
Residential		8,720		707		266		9,693		1,566,065		1,575,758		—
Total Real Estate		15,734		867		441		17,042		4,510,953		4,527,995		—
Consumer:
Auto		779		30		—		809		549,826		550,635		—
Non-Auto		50		—		—		50		147,834		147,884		—
Total Consumer		829		30		—		859		697,660		698,519		—
Total	$	20,806	$	1,977	$	2,087	$	24,870	$	6,416,998	$	6,441,868	$	—

* The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due.

Modifications of receivables to debtors experiencing financial difficulty

On January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02, which eliminates the recognition and measurement of a TDR. Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting

guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, term extensions, interest rate reduction, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses due to the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. During the year ended December 31, 2023, loan modifications made to borrowers experiencing financial difficulty was insignificant.

An analysis of the changes in loans to officers, directors, principal shareholders, or associates of such persons for the year ended December 31, 2023 (determined as of each respective year-end) follows (in thousands):

	Beginning Balance		Additional Loans		Payments		Ending Balance
Year Ended December 31, 2023	$	107,767	$	104,519	$	140,242	$	72,044

In the opinion of management, those loans are on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with unaffiliated persons.