Loans Held for Investment and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Loans Held-for-Investment by Portfolio Segment

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

	June 30,						December 31,
	2024			2023			2023
Commercial:
C&I	$	1,141,990		$	1,021,863		$	1,164,811
Municipal		359,124			215,977			214,850
Total Commercial		1,501,114			1,237,840			1,379,661
Agricultural		86,186			82,032			84,890
Real Estate:
Construction & Development		986,394			915,221			963,158
Farm		318,597			335,644			344,954
Non-Owner Occupied CRE		815,713			811,347			827,969
Owner Occupied CRE		1,049,715			1,011,511			1,037,281
Residential		1,990,604			1,698,679			1,834,593
Total Real Estate		5,161,023			4,772,402			5,007,955
Consumer:
Auto		615,192			534,603			521,859
Non-Auto		156,218			150,693			154,426
Total Consumer		771,410			685,296			676,285
Total Loans		7,519,733			6,777,570			7,148,791
Less: Allowance for credit losses		(95,170	)		(86,541	)		(88,734	)
Loans, net	$	7,424,563		$	6,691,029		$	7,060,057

Non-Accrual Loans and Loans Still Accruing and Past Due 90 Days or More

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

	June 30,				December 31,
	2024		2023		2023
Nonaccrual loans	$	60,311	$	28,672	$	33,609
Loans still accruing and past due 90 days or more		231		552		1,004
Total nonperforming loans	$	60,542	$	29,224	$	34,613

Schedule of Non-Accrual Loans

Nonaccrual loans at June 30, 2024 and 2023, and December 31, 2023, consisted of the following (dollars in thousands):

	June 30,				December 31,
	2024		2023		2023
Commercial:
C&I	$	4,080	$	4,818	$	4,132
Municipal		—		—		—
Total Commercial		4,080		4,818		4,132
Agricultural		2,028		133		155
Real Estate:
Construction & Development		1,679		2,835		1,444
Farm		4,299		701		4,804
Non-Owner Occupied CRE		9,615		5,329		8,022
Owner Occupied CRE		31,606		7,308		6,822
Residential		5,984		6,769		7,649
Total Real Estate		53,183		22,942		28,741
Consumer:
Auto		710		649		464
Non-Auto		310		130		117
Total Consumer		1,020		779		581
Total	$	60,311	$	28,672	$	33,609

Changes in Allowance for Loan Losses

Summary information on the allowance for credit losses for the three and six-months ended June 30, 2024 and 2023, are outlined by portfolio segment in the following tables (dollars in thousands):

Three-Months Ended June 30, 2024	C&I			Municipal		Agricultural			Construction & Development			Farm
Beginning balance	$	16,106		$	195	$	3,243		$	24,811		$	2,517
Provision for loan losses		(790	)		44		(1,359	)		(1,300	)		385
Recoveries		177			—		46			—			—
Charge-offs		(242	)		—		1			—			—
Ending balance	$	15,251		$	239	$	1,931		$	23,511		$	2,902

Three-Months Ended June 30, 2024 (continued)	Non-Owner Occupied CRE			Owner Occupied CRE		Residential			Auto			Non-Auto			Total
Beginning balance	$	14,968		$	12,756	$	13,565		$	907		$	494		$	89,562
Provision for loan losses		(1,951	)		8,260		2,112			406			103			5,910
Recoveries		24			38		2			89			24			400
Charge-offs		(13	)		—		(11	)		(329	)		(108	)		(702	)
Ending balance	$	13,028		$	21,054	$	15,668		$	1,073		$	513		$	95,170

Three-Months Ended June 30, 2023	C&I			Municipal			Agricultural			Construction & Development		Farm
Beginning balance	$	16,083		$	1,067		$	1,214		$	28,627	$	1,937
Provision for loan losses		988			(880	)		(153	)		339		867
Recoveries		113			—			21			—		—
Charge-offs		(654	)		—			—			—		—
Ending balance	$	16,530		$	187		$	1,082		$	28,966	$	2,804

Three-Months Ended June 30, 2023 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential			Auto			Non-Auto			Total
Beginning balance	$	9,051	$	11,948	$	9,702		$	857		$	332		$	80,818
Provision for loan losses		4,398		610		167			99			87			6,522
Recoveries		22		14		12			101			36			319
Charge-offs		—		—		(114	)		(228	)		(122	)		(1,118	)
Ending balance	$	13,471	$	12,572	$	9,767		$	829		$	333		$	86,541

Six-Months Ended June 30, 2024	C&I			Municipal		Agricultural			Construction & Development			Farm
Beginning balance	$	15,698		$	195	$	1,281		$	28,553		$	2,914
Provision for loan losses		(289	)		44		658			(5,009	)		(12	)
Recoveries		288			—		51			—			—
Charge-offs		(446	)		—		(59	)		(33	)		—
Ending balance	$	15,251		$	239	$	1,931		$	23,511		$	2,902

Six-Months Ended June 30, 2024 (continued)	Non-Owner Occupied CRE			Owner Occupied CRE		Residential			Auto			Non- Auto			Total
Beginning balance	$	13,425		$	13,813	$	11,654		$	810		$	391		$	88,734
Provision for loan losses		(415	)		7,161		3,925			790			313			7,166
Recoveries		31			80		100			201			71			822
Charge-offs		(13	)		—		(11	)		(728	)		(262	)		(1,552	)
Ending balance	$	13,028		$	21,054	$	15,668		$	1,073		$	513		$	95,170

Six-Months Ended June 30, 2023	C&I			Municipal			Agricultural			Construction & Development		Farm
Beginning balance	$	16,129		$	1,026		$	1,041		$	26,443	$	1,957
Provision for loan losses		924			(839	)		(181	)		2,423		847
Recoveries		165			—			222			100		—
Charge-offs		(688	)		—			—			—		—
Ending balance	$	16,530		$	187		$	1,082		$	28,966	$	2,804

Six-Months Ended June 30, 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		4,349		2,623		791			169			123			11,229
Recoveries		47		21		15			233			81			884
Charge-offs		—		—		(114	)		(418	)		(186	)		(1,406	)
Ending balance	$	13,471	$	12,572	$	9,767		$	829		$	333		$	86,541

Schedule of loans that are individually evaluated for credit losses

The Company’s loans that are individually evaluated for credit losses (both collateral and non-collateral dependent) and their related allowances as of June 30, 2024 and 2023, and December 31, 2023, are summarized in the following tables by loan segment (dollars in thousands):

June 30, 2024	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	$	1,070	$	3,010	$	38,462	$	42,542	$	1,166	$	3,664	$	4,830
Municipal		—		—		559		559		—		—		—
Total Commercial		1,070		3,010		39,021		43,101		1,166		3,664		4,830
Agricultural		714		1,314		968		2,996		1,025		380		1,405
Real Estate:
Construction & Development		1,104		575		25,002		26,681		57		1,751		1,808
Farm		—		4,299		5,496		9,795		429		454		883
Non-Owner Occupied CRE		2,327		7,288		20,881		30,496		1,150		1,777		2,927
Owner Occupied CRE		2,316		29,290		35,847		67,453		5,566		3,018		8,584
Residential		2,820		3,164		28,659		34,643		245		1,503		1,748
Total Real Estate		8,567		44,616		115,885		169,068		7,447		8,503		15,950
Consumer:
Auto		—		710		2,373		3,083		1		5		6
Non-Auto		—		310		705		1,015		65		54		119
Total Consumer		—		1,020		3,078		4,098		66		59		125
Total	$	10,351	$	49,960	$	158,952	$	219,263	$	9,704	$	12,606	$	22,310

June 30, 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	$	610	$	4,208	$	23,282	$	28,100	$	2,780	$	5,671	$	8,451
Municipal		—		—		1,507		1,507		—		—		—
Total Commercial		610		4,208		24,789		29,607		2,780		5,671		8,451
Agricultural		—		133		1,855		1,988		37		517		554
Real Estate:
Construction & Development		2,672		163		21,787		24,622		15		2,194		2,209
Farm		578		123		7,038		7,739		18		1,117		1,135
Non-Owner Occupied CRE		2,062		3,267		27,112		32,441		421		2,502		2,923
Owner Occupied CRE		5,643		1,665		31,870		39,178		299		1,769		2,068
Residential		4,283		2,486		29,923		36,692		261		1,611		1,872
Total Real Estate		15,238		7,704		117,730		140,672		1,014		9,193		10,207
Consumer:
Auto		29		620		1,571		2,220		1		2		3
Non-Auto		—		130		522		652		—		1		1
Total Consumer		29		750		2,093		2,872		1		3		4
Total	$	15,877	$	12,795	$	146,467	$	175,139	$	3,832	$	15,384	$	19,216

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

Schedule of Allowance for Loan Losses by Portfolio Segment

The Company’s allowance for loans that are individually evaluated for credit losses and collectively evaluated for credit losses as of June 30, 2024 and 2023, and December 31, 2023, are summarized in the following table by loan segment (dollars 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.

June 30, 2024	C&I		Municipal		Agricultural		Construction & Development		Farm
Loans individually evaluated for credit losses	$	4,830	$	—	$	1,405	$	1,808	$	883
Loans collectively evaluated for credit losses		10,421		239		526		21,703		2,019
Total	$	15,251	$	239	$	1,931	$	23,511	$	2,902

June 30, 2024 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	2,927	$	8,584	$	1,748	$	6	$	119	$	22,310
Loans collectively evaluated for credit losses		10,101		12,470		13,920		1,067		394		72,860
Total	$	13,028	$	21,054	$	15,668	$	1,073	$	513	$	95,170

June 30, 2023	C&I		Municipal		Agricultural		Construction & Development		Farm
Loans individually evaluated for credit losses	$	8,451	$	—	$	554	$	2,209	$	1,135
Loans collectively evaluated for credit losses		8,079		187		528		26,757		1,669
Total	$	16,530	$	187	$	1,082	$	28,966	$	2,804

June 30, 2023 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	2,923	$	2,068	$	1,872	$	3	$	1	$	19,216
Loans collectively evaluated for credit losses		10,548		10,504		7,895		826		332		67,325
Total	$	13,471	$	12,572	$	9,767	$	829	$	333	$	86,541

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

Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology

The Company’s recorded investment in loans as of June 30, 2024 and 2023, and December 31, 2023, related to the balance in the allowance for credit losses follows below (dollars in thousands):

June 30, 2024	C&I		Municipal		Agricultural		Construction & Development		Farm
Loans individually evaluated for credit losses	$	42,542	$	559	$	2,996	$	26,681	$	9,795
Loans collectively evaluated for credit losses		1,099,448		358,565		83,190		959,713		308,802
Total	$	1,141,990	$	359,124	$	86,186	$	986,394	$	318,597

June 30, 2024 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	30,496	$	67,453	$	34,643	$	3,083	$	1,015	$	219,263
Loans collectively evaluated for credit losses		785,217		982,262		1,955,961		612,109		155,203		7,300,470
Total	$	815,713	$	1,049,715	$	1,990,604	$	615,192	$	156,218	$	7,519,733

June 30, 2023	C&I		Municipal		Agricultural		Construction & Development		Farm
Loans individually evaluated for credit losses	$	28,100	$	1,507	$	1,988	$	24,622	$	7,739
Loans collectively evaluated for credit losses		993,763		214,470		80,044		890,599		327,905
Total	$	1,021,863	$	215,977	$	82,032	$	915,221	$	335,644

June 30, 2023 (continued)	Non-Owner Occupied CRE		Owner Occupied CRE		Residential		Auto		Non-Auto		Total
Loans individually evaluated for credit losses	$	32,441	$	39,178	$	36,692	$	2,220	$	652	$	175,139
Loans collectively evaluated for credit losses		778,906		972,333		1,661,987		532,383		150,041		6,602,431
Total	$	811,347	$	1,011,511	$	1,698,679	$	534,603	$	150,693	$	6,777,570

December 31, 2023	C&I		Municipal		Agricultural		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

Schedule of Company's Internal Ratings of its Loans Held-for-Investment, Including The Year of Origination, by Portfolio Segments

The following summarizes the Company’s internal ratings of its loans held-for-investment, including the year of origination, by portfolio segments, at June 30, 2024 (dollars in millions):

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
C&I
Risk rating:
Pass	$	340	$	431	$	201	$	65	$	29	$	33			$	1,099
Special mention		22														22
Substandard		11		3		2		2		1		2				21
Doubtful																—
Total	$	373	$	434	$	203	$	67	$	30	$	35	$	—	$	1,142
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Municipal
Risk rating:
Pass	$	148	$	31	$	80	$	14	$	9	$	76			$	358
Special mention																—
Substandard								1								1
Doubtful																—
Total	$	148	$	31	$	80	$	15	$	9	$	76	$	—	$	359
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Agricultural
Risk rating:
Pass	$	38	$	36	$	5	$	3	$	1					$	83
Special mention																—
Substandard		3		—												3
Doubtful																—
Total	$	41	$	36	$	5	$	3	$	1	$	—	$	—	$	86
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Construction & Development
Risk rating:
Pass	$	304	$	350	$	215	$	60	$	17	$	13	$	—	$	959
Special mention		6		2		2										10
Substandard		7		3		1		6								17
Doubtful																—
Total	$	317	$	355	$	218	$	66	$	17	$	13	$	—	$	986
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Farm
Risk rating:
Pass	$	63	$	51	$	78	$	68	$	22	$	27			$	309
Special mention																—
Substandard				1		4				5						10
Doubtful																—
Total	$	63	$	52	$	82	$	68	$	27	$	27	$	—	$	319
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Non-Owner Occupied CRE
Risk rating:
Pass	$	118	$	88	$	241	$	165	$	72	$	102			$	786
Special mention								1				3				4
Substandard		1		1		1		3		5		15				26
Doubtful																—
Total	$	119	$	89	$	242	$	169	$	77	$	120	$	—	$	816
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Owner Occupied CRE
Risk rating:
Pass	$	62	$	148	$	293	$	200	$	105	$	175			$	983
Special mention		2		1				8				2				13
Substandard		1		2		32		4		2		13				54
Doubtful																—
Total	$	65	$	151	$	325	$	212	$	107	$	190	$	—	$	1,050
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Residential
Risk rating:
Pass	$	286	$	409	$	407	$	292	$	143	$	264	$	155	$	1,956
Special mention				1		2		2		1		2		1		9
Substandard		1		4		4		2		3		9		3		26
Doubtful																—
Total	$	287	$	414	$	413	$	296	$	147	$	275	$	159	$	1,991
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Auto
Risk rating:
Pass	$	215	$	155	$	166	$	53	$	17	$	6			$	612
Special mention																—
Substandard						1		2								3
Doubtful																—
Total	$	215	$	155	$	167	$	55	$	17	$	6	$	—	$	615
Year-to-Date Gross Charge-Offs	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	1

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Non-Auto
Risk rating:
Pass	$	41	$	50	$	35	$	17	$	3	$	1	$	8	$	155
Special mention																—
Substandard				1												1
Doubtful																—
Total	$	41	$	51	$	35	$	17	$	3	$	1	$	8	$	156
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Total Loans
Risk rating:
Pass	$	1,615	$	1,749	$	1,721	$	937	$	418	$	697	$	163	$	7,300
Special mention		30		4		4		11		1		7		1		58
Substandard		24		15		45		20		16		39		3		162
Doubtful		—		—		—		—		—		—		—		—
Total	$	1,669	$	1,768	$	1,770	$	968	$	435	$	743	$	167	$	7,520
Year-to-Date Gross Charge-Offs	$	—	$	—	$	1	$	—	$	—	$	1	$	—	$	2

The following summarizes the Company’s internal ratings of its loans held-for-investment, including the year of origination, by portfolio segments, at June 30, 2023 (dollars in millions):

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
C&I
Risk rating:
Pass	$	333	$	468	$	105	$	44	$	18	$	26	$	—	$	994
Special mention		8		1		—		—		1		—		—		10
Substandard		3		7		4		2		—		2		—		18
Doubtful		—		—		—		—		—		—		—		—
Total	$	344	$	476	$	109	$	46	$	19	$	28	$	—	$	1,022
Year-to-Date Gross Charge-Offs	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	1

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Municipal
Risk rating:
Pass	$	11	$	84	$	17	$	14	$	1		87	$	—	$	214
Special mention		—		—		—		—		1		—		—		1
Substandard		—		—		1		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	11	$	84	$	18	$	14	$	2	$	87	$	—	$	216
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Agricultural
Risk rating:
Pass	$	30	$	42	$	5	$	2	$	1		—	$	—	$	80
Special mention		—		1		—		—		—		—		—		1
Substandard		—		1		—		—		—		—		—		1
Doubtful		—		—		—		—		—		—		—		—
Total	$	30	$	44	$	5	$	2	$	1	$	—	$	—	$	82
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Construction & Development
Risk rating:
Pass	$	242	$	498	$	103	$	24	$	11	$	12	$	—	$	890
Special mention		8		4		—		—		—		—		—		12
Substandard		4		8		1		—		—		—		—		13
Doubtful		—		—		—		—		—		—		—		—
Total	$	254	$	510	$	104	$	24	$	11	$	12	$	—	$	915
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Farm
Risk rating:
Pass	$	63	$	126	$	78	$	26	$	9	$	26	$	—	$	328
Special mention		—		—		—		5		—		—		—		5
Substandard		—		1		1		—		—		1		—		3
Doubtful		—		—		—		—		—		—		—		—
Total	$	63	$	127	$	79	$	31	$	9	$	27	$	—	$	336
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Non-Owner Occupied CRE
Risk rating:
Pass	$	101	$	234	$	185	$	125	$	46	$	88	$	—	$	779
Special mention		—		5		1		—		11		2		—		19
Substandard		—		1		4		1		2		5		—		13
Doubtful		—		—		—		—		—		—		—		—
Total	$	101	$	240	$	190	$	126	$	59	$	95	$	—	$	811
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Owner Occupied CRE
Risk rating:
Pass	$	67	$	321	$	240	$	121	$	68	$	156	$	—	$	973
Special mention		—		—		—		—		6		1		—		7
Substandard		2		5		1		1		6		17		—		32
Doubtful		—		—		—		—		—		—		—		—
Total	$	69	$	326	$	241	$	122	$	80	$	174	$	—	$	1,012
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Residential
Risk rating:
Pass	$	228	$	461	$	335	$	172	$	73	$	255	$	138	$	1,662
Special mention		—		2		3		2		—		3		1		11
Substandard		1		6		4		3		2		8		2		26
Doubtful		—		—		—		—		—		—		—		—
Total	$	229	$	469	$	342	$	177	$	75	$	266	$	141	$	1,699
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Auto
Risk rating:
Pass	$	110	$	265	$	99	$	39	$	16	$	4	$	—	$	533
Special mention		—		—		—		—		—		—		—		—
Substandard		—		1		1		—		—		—		—		2
Doubtful		—		—		—		—		—		—		—		—
Total	$	110	$	266	$	100	$	39	$	16	$	4	$	—	$	535
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Non-Auto
Risk rating:
Pass	$	41	$	63	$	29	$	6	$	2	$	1	$	8	$	150
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	41	$	63	$	29	$	6	$	2	$	1	$	8	$	150
Year-to-Date Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Total Loans
Risk rating:
Pass	$	1,226	$	2,562	$	1,196	$	573	$	245	$	655	$	146	$	6,603
Special mention		16		13		4		7		19		6		1		66
Substandard		10		30		17		7		10		33		2		109
Doubtful		—		—		—		—		—		—		—		—
Total	$	1,252	$	2,605	$	1,217	$	587	$	274	$	694	$	149	$	6,778
Year-to-Date Gross Charge-Offs	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	1

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

December 31,	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized 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 Amortized 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 Amortized 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 Amortized 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 Amortized 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 Amortized 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 Amortized 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 Amortized 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 Amortized 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 Amortized 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 Amortized 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

Schedule of Past Due Loans

At June 30, 2024 and 2023, and December 31, 2023, the Company’s past due loans are as follows (dollars in thousands):

June 30, 2024	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	$	4,953	$	593	$	1,060	$	6,606	$	1,135,384	$	1,141,990	$	—
Municipal		82		—		—		82		359,042		359,124		—
Total Commercial		5,035		593		1,060		6,688		1,494,426		1,501,114		—
Agricultural		1,158		997		119		2,274		83,912		86,186		—
Real Estate:
Construction & Development		11,086		1,144		545		12,775		973,619		986,394		—
Farm		2,055		—		95		2,150		316,447		318,597		95
Non-Owner Occupied CRE		2,208		—		—		2,208		813,505		815,713		—
Owner Occupied CRE		3,478		27		1,335		4,840		1,044,875		1,049,715		—
Residential		14,705		1,416		1,369		17,490		1,973,114		1,990,604		—
Total Real Estate		33,532		2,587		3,344		39,463		5,121,560		5,161,023		95
Consumer:
Auto		1,063		361		13		1,437		613,755		615,192		1
Non-Auto		354		135		149		638		155,580		156,218		135
Total Consumer		1,417		496		162		2,075		769,335		771,410		136
Total	$	41,142	$	4,673	$	4,685	$	50,500	$	7,469,233	$	7,519,733	$	231

June 30, 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	$	3,734	$	722	$	1,651	$	6,107	$	1,015,756	$	1,021,863	$	3
Municipal		215		—		—		215		215,762		215,977		—
Total Commercial		3,949		722		1,651		6,322		1,231,518		1,237,840		3
Agricultural		580		1,024		15		1,619		80,413		82,032		—
Real Estate:
Construction & Development		14,390		2,062		—		16,452		898,769		915,221		—
Farm		776		205		372		1,353		334,291		335,644		—
Non-Owner Occupied CRE		1,395		—		2,988		4,383		806,964		811,347		—
Owner Occupied CRE		3,356		3,818		—		7,174		1,004,337		1,011,511		—
Residential		7,265		2,210		1,301		10,776		1,687,903		1,698,679		520
Total Real Estate		27,182		8,295		4,661		40,138		4,732,264		4,772,402		520
Consumer:
Auto		574		118		14		706		533,897		534,603		—
Non-Auto		135		18		65		218		150,475		150,693		29
Total Consumer		709		136		79		924		684,372		685,296		29
Total	$	32,420	$	10,177	$	6,406	$	49,003	$	6,728,567	$	6,777,570	$	552

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

* 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.