XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.1
Loans Held for Sale
 3 Months Ended
Mar. 31, 2022
Loans Held for Sale [Abstract]  
Loans Held for Sale Loans Held for Sale
The following table presents loans held for sale by segment for the dates indicated:
March 31,
2022		December 31,
2021
Loans Held for Sale:
Agricultural$132.1 $— 
Commercial23.4 — 
Residential real estate22.6 30.1 
Total loans held for sale$178.1 $30.1 
Residential real estate loans that the Company originated with the intent to sell are recorded at fair value. Conforming agency mortgage production is sold on a servicing retained basis. Certain loans, such as government guaranteed mortgage loans, are sold on a servicing released basis. The fair value of loans held for sale are primarily determined based on quoted prices for similar loans in active markets or outstanding commitments from third-party investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to non-interest income in the consolidated statements from operations. Net gains and losses on loan sales are recorded as a component of non-interest income.
As of March 31, 2022, loans held for sale included nonaccrual loans of $32.7 million, all of which were agricultural loans. There were no loans held for sale that were considered a troubled debt restructuring as of March 31, 2022.
On February 1, 2022, in conjunction with the acquisition of GWB, agricultural loans with a carrying value of $155.8 million and commercial loans with a carrying value of $24.0 million were reclassified as loans held for sale from loans held for investment due to management’s intent and decision to sell the loans.
During the period ended March 31, 2022, agricultural loans with a carrying value of $19.8 million were reclassified from loans held for sale to loans held for investment due to management’s change in intent and decision not to sell the loans. On the date of transfer, the amortized cost exceeded the fair value of the loans due to credit deterioration. The Company recorded a charge-off of $5.1 million to the allowance for credit losses, which established a new aggregate cost basis for the loans of $14.7 million on the date of transfer.