| LOANS AND ALLOWANCE FOR CREDIT LOSSES |
NOTE 3 - LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table summarizes the Company’s loan portfolio by type of loan as of:
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
|
December 31, 2021 |
|
Commercial and industrial |
|
$ |
268,812 |
|
|
$ |
280,569 |
|
Real estate: |
|
|
|
|
|
|
Construction and development |
|
|
350,024 |
|
|
|
307,797 |
|
Commercial real estate |
|
|
749,603 |
|
|
|
622,842 |
|
Farmland |
|
|
166,309 |
|
|
|
145,501 |
|
1-4 family residential |
|
|
450,929 |
|
|
|
410,673 |
|
Multi-family residential |
|
|
55,985 |
|
|
|
30,971 |
|
Consumer |
|
|
56,433 |
|
|
|
50,965 |
|
Agricultural |
|
|
14,502 |
|
|
|
14,639 |
|
Warehouse lending(1) |
|
|
25,344 |
|
|
|
43,720 |
|
Overdrafts |
|
|
435 |
|
|
|
363 |
|
Total loans(2) |
|
|
2,138,376 |
|
|
|
1,908,040 |
|
Net of: |
|
|
|
|
|
|
Deferred loan fees, net |
|
|
(1,721 |
) |
|
|
(1,531 |
) |
Allowance for credit losses |
|
|
(28,997 |
) |
|
|
(30,433 |
) |
Total net loans(2) |
|
$ |
2,107,658 |
|
|
$ |
1,876,076 |
|
|
|
|
|
|
|
|
(1) Warehouse lending is presented as a component of commercial and industrial loans in remaining tables. |
|
(2) Excludes accrued interest receivable on loans of $5.7 million and $5.8 million as of June 30, 2022 and December 31, 2021, respectively, which is presented separately on the consolidated balance sheets. |
|
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 six months ended June 30, 2022, for the year ended December 31, 2021 and for the six months ended June 30, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2022 |
|
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 |
|
$ |
3,600 |
|
|
$ |
4,221 |
|
|
$ |
13,765 |
|
|
$ |
1,698 |
|
|
$ |
5,818 |
|
|
$ |
396 |
|
|
$ |
762 |
|
|
$ |
169 |
|
|
$ |
4 |
|
|
$ |
30,433 |
|
(Reversal of) provision for credit losses |
|
|
462 |
|
|
|
27 |
|
|
|
(2,420 |
) |
|
|
55 |
|
|
|
121 |
|
|
|
208 |
|
|
|
209 |
|
|
|
(8 |
) |
|
|
96 |
|
|
|
(1,250 |
) |
Loans charged-off |
|
|
(154 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(36 |
) |
|
|
— |
|
|
|
(138 |
) |
|
|
(328 |
) |
Recoveries |
|
|
45 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
|
|
43 |
|
|
|
142 |
|
Ending balance |
|
$ |
3,953 |
|
|
$ |
4,248 |
|
|
$ |
11,346 |
|
|
$ |
1,753 |
|
|
$ |
5,969 |
|
|
$ |
604 |
|
|
$ |
958 |
|
|
$ |
161 |
|
|
$ |
5 |
|
|
$ |
28,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 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 |
|
(Reversal of) provision for credit losses |
|
|
(43 |
) |
|
|
(515 |
) |
|
|
(1,229 |
) |
|
|
478 |
|
|
|
(495 |
) |
|
|
33 |
|
|
|
(51 |
) |
|
|
(78 |
) |
|
|
200 |
|
|
|
(1,700 |
) |
Loans charged-off |
|
|
(411 |
) |
|
|
— |
|
|
|
(816 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(151 |
) |
|
|
— |
|
|
|
(263 |
) |
|
|
(1,641 |
) |
Recoveries |
|
|
21 |
|
|
|
1 |
|
|
|
30 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
8 |
|
|
|
60 |
|
|
|
155 |
|
Ending balance |
|
$ |
3,600 |
|
|
$ |
4,221 |
|
|
$ |
13,765 |
|
|
$ |
1,698 |
|
|
$ |
5,818 |
|
|
$ |
396 |
|
|
$ |
762 |
|
|
$ |
169 |
|
|
$ |
4 |
|
|
$ |
30,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 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 |
|
|
(329 |
) |
|
|
(914 |
) |
|
|
167 |
|
|
|
19 |
|
|
|
(162 |
) |
|
|
255 |
|
|
|
(34 |
) |
|
|
(49 |
) |
|
|
47 |
|
|
|
(1,000 |
) |
Loans charged-off |
|
|
(238 |
) |
|
|
— |
|
|
|
(760 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(76 |
) |
|
|
— |
|
|
|
(84 |
) |
|
|
(1,158 |
) |
Recoveries |
|
|
11 |
|
|
|
1 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28 |
|
|
|
— |
|
|
|
36 |
|
|
|
87 |
|
Ending balance |
|
$ |
3,477 |
|
|
$ |
3,822 |
|
|
$ |
15,198 |
|
|
$ |
1,239 |
|
|
$ |
6,151 |
|
|
$ |
618 |
|
|
$ |
847 |
|
|
$ |
190 |
|
|
$ |
6 |
|
|
$ |
31,548 |
|
During the year ended December 31, 2020, a total allowance for credit losses provision of $13,200 was recorded primarily to account for the estimated impact of COVID-19 on credit quality and resulted largely from changes to individual loan risk ratings, as well as COVID-specific qualitative factors primarily derived from changes in national GDP, Texas unemployment rates and national industry related CRE trends, all of which were impacted by the effects of COVID-19. During 2021, we recorded no provision in the first quarter, a $1,000 reverse provision in the second quarter and a $700 reverse provision in the third quarter. No provision was recorded in the fourth quarter of 2021. These provision reversals captured improvements that occurred to macroeconomic factors evaluated at the onset of the pandemic as part of the aforementioned COVID-specific qualitative factors, as well as risk rating upgrades for specific loans, which impacted the reserve calculations within our model. In the first quarter of 2022, we unwound the remaining COVID-specific qualitative factors and recorded an additional reverse provision of $1,250 to account for significant improvements in COVID-related health statistics and economic impacts. The Company uses the weighted-average remaining maturity ("WARM") method as the basis for the estimation of expected credit losses. The WARM method uses a historical average annual charge-off rate containing loss content over a historical lookback period and is used as a foundation for estimating the credit loss reserve for the remaining outstanding balances of loans in a segment at the balance sheet date. The average annual charge-off rate is applied to the contractual term, further adjusted for estimated prepayments, to determine the unadjusted historical charge-off rate. The calculation of the unadjusted historical charge-off rate is then adjusted, using qualitative factors, for current conditions and for reasonable and supportable forecast periods. Qualitative loss factors are based on the Company’s judgment of company, market, industry or business specific data, differences in loan-specific risk characteristics such as underwriting standards, portfolio mix, risk grades, delinquency level, or term. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. Additionally, we have adjusted for changes in expected environmental and economic conditions, such as changes in unemployment rates, property values, and other relevant factors over the next 12 to 24 months. Management adjusted the historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company’s estimate was a cumulative loss rate covering the expected contractual term of the portfolio. The ACL is measured on a collective segment basis when similar risk characteristics exist. Our loan portfolio is segmented first by regulatory call report code, and second, by internally identified risk grades for our commercial loan segments and by delinquency status for our consumer loan segments. We also have separate segments for our warehouse lines of credit, for our internally originated SBA loans, for our SBA loans acquired from Westbound Bank and for SBA-guaranteed PPP loans. Consistent forecasts of the loss drivers are used across the loan segments. For loans that do not share general risk characteristics with segments, we estimate a specific reserve on an individual basis. A reserve is recorded when the carrying amount of the loan exceeds the discounted estimated cash flows using the loan's initial effective interest rate or the fair value of collateral for collateral-dependent loans. Assets are graded “pass” when the relationship exhibits acceptable credit risk and indicates repayment ability, tolerable collateral coverage and reasonable performance history. Lending relationships exhibiting potentially significant credit risk and marginal repayment ability and/or asset protection are graded “special mention.” Assets classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. Substandard graded loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets graded “doubtful” are substandard graded loans that have added characteristics that make collection or liquidation in full improbable. Loans that are on nonaccrual status are generally classified as substandard. In general, the loans in our portfolio have low historical credit losses. The Company closely monitors economic conditions and loan performance trends to manage and evaluate the exposure to credit risk. Key factors tracked by the Company and utilized in evaluating the credit quality of the loan portfolio include trends in delinquency ratios, the level of nonperforming assets, borrower’s repayment capacity, and collateral coverage. The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of June 30, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Total |
|
Commercial and industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
72,035 |
|
|
$ |
74,565 |
|
|
$ |
22,755 |
|
|
$ |
13,675 |
|
|
$ |
5,010 |
|
|
$ |
15,538 |
|
|
$ |
89,101 |
|
|
$ |
292,679 |
|
Special mention |
|
|
— |
|
|
|
148 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
148 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
258 |
|
|
|
653 |
|
|
|
204 |
|
|
|
30 |
|
|
|
— |
|
|
|
1,145 |
|
Nonaccrual |
|
|
— |
|
|
|
32 |
|
|
|
57 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
95 |
|
|
|
184 |
|
Total commercial and industrial loans |
|
$ |
72,035 |
|
|
$ |
74,745 |
|
|
$ |
23,070 |
|
|
$ |
14,328 |
|
|
$ |
5,214 |
|
|
$ |
15,568 |
|
|
$ |
89,196 |
|
|
$ |
294,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(30 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(124 |
) |
|
$ |
(154 |
) |
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
12 |
|
|
|
45 |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(30 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33 |
|
|
$ |
(112 |
) |
|
$ |
(109 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
90,460 |
|
|
$ |
178,336 |
|
|
$ |
30,558 |
|
|
$ |
17,497 |
|
|
$ |
5,771 |
|
|
$ |
17,007 |
|
|
$ |
9,474 |
|
|
$ |
349,103 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
920 |
|
|
|
— |
|
|
|
920 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total construction and development loans |
|
$ |
90,460 |
|
|
$ |
178,336 |
|
|
$ |
30,558 |
|
|
$ |
17,497 |
|
|
$ |
5,772 |
|
|
$ |
17,927 |
|
|
$ |
9,474 |
|
|
$ |
350,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
160,736 |
|
|
$ |
144,217 |
|
|
$ |
108,522 |
|
|
$ |
68,311 |
|
|
$ |
50,281 |
|
|
$ |
162,261 |
|
|
$ |
16,445 |
|
|
$ |
710,773 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
950 |
|
|
|
— |
|
|
|
8,841 |
|
|
|
17,536 |
|
|
|
— |
|
|
|
27,327 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,030 |
|
|
|
3,047 |
|
|
|
— |
|
|
|
4,077 |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
248 |
|
|
|
106 |
|
|
|
63 |
|
|
|
7,009 |
|
|
|
— |
|
|
|
7,426 |
|
Total commercial real estate loans |
|
$ |
160,736 |
|
|
$ |
144,217 |
|
|
$ |
109,720 |
|
|
$ |
68,417 |
|
|
$ |
60,215 |
|
|
$ |
189,853 |
|
|
$ |
16,445 |
|
|
$ |
749,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Total |
|
Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
65,506 |
|
|
$ |
57,309 |
|
|
$ |
11,768 |
|
|
$ |
7,164 |
|
|
$ |
6,828 |
|
|
$ |
12,908 |
|
|
$ |
4,630 |
|
|
$ |
166,113 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
67 |
|
|
|
— |
|
|
|
99 |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
97 |
|
|
|
— |
|
|
|
97 |
|
Total farmland loans |
|
$ |
65,506 |
|
|
$ |
57,309 |
|
|
$ |
11,768 |
|
|
$ |
7,196 |
|
|
$ |
6,828 |
|
|
$ |
13,072 |
|
|
$ |
4,630 |
|
|
$ |
166,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
79,199 |
|
|
$ |
132,508 |
|
|
$ |
55,175 |
|
|
$ |
34,883 |
|
|
$ |
29,142 |
|
|
$ |
100,769 |
|
|
$ |
17,572 |
|
|
$ |
449,248 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
109 |
|
|
|
— |
|
|
|
131 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
— |
|
|
|
159 |
|
|
|
— |
|
|
|
— |
|
|
|
118 |
|
|
|
1,273 |
|
|
|
— |
|
|
|
1,550 |
|
Total 1-4 family residential loans |
|
$ |
79,199 |
|
|
$ |
132,667 |
|
|
$ |
55,175 |
|
|
$ |
34,883 |
|
|
$ |
29,282 |
|
|
$ |
102,151 |
|
|
$ |
17,572 |
|
|
$ |
450,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
30 |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
30 |
|
|
$ |
— |
|
|
$ |
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
25,629 |
|
|
$ |
18,566 |
|
|
$ |
2,511 |
|
|
$ |
6,334 |
|
|
$ |
893 |
|
|
$ |
1,961 |
|
|
$ |
91 |
|
|
$ |
55,985 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total multi-family residential loans |
|
$ |
25,629 |
|
|
$ |
18,566 |
|
|
$ |
2,511 |
|
|
$ |
6,334 |
|
|
$ |
893 |
|
|
$ |
1,961 |
|
|
$ |
91 |
|
|
$ |
55,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Total |
|
Consumer and overdrafts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
18,010 |
|
|
$ |
17,136 |
|
|
$ |
8,071 |
|
|
$ |
2,865 |
|
|
$ |
3,674 |
|
|
$ |
660 |
|
|
$ |
6,028 |
|
|
$ |
56,444 |
|
Special mention |
|
|
8 |
|
|
|
32 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
— |
|
|
|
68 |
|
|
|
17 |
|
|
|
8 |
|
|
|
31 |
|
|
|
8 |
|
|
|
250 |
|
|
|
382 |
|
Total consumer loans and overdrafts |
|
$ |
18,018 |
|
|
$ |
17,236 |
|
|
$ |
8,090 |
|
|
$ |
2,873 |
|
|
$ |
3,705 |
|
|
$ |
668 |
|
|
$ |
6,278 |
|
|
$ |
56,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
(138 |
) |
|
$ |
(14 |
) |
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(174 |
) |
Recoveries |
|
|
43 |
|
|
|
1 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
66 |
|
Current period net |
|
$ |
(95 |
) |
|
$ |
(13 |
) |
|
$ |
(22 |
) |
|
$ |
11 |
|
|
$ |
— |
|
|
$ |
11 |
|
|
$ |
— |
|
|
$ |
(108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
1,719 |
|
|
$ |
2,392 |
|
|
$ |
1,377 |
|
|
$ |
680 |
|
|
$ |
665 |
|
|
$ |
540 |
|
|
$ |
6,865 |
|
|
$ |
14,238 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
3 |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
49 |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
71 |
|
|
|
6 |
|
|
|
53 |
|
|
|
79 |
|
|
|
209 |
|
Total agricultural loans |
|
$ |
1,719 |
|
|
$ |
2,392 |
|
|
$ |
1,391 |
|
|
$ |
754 |
|
|
$ |
671 |
|
|
$ |
631 |
|
|
$ |
6,944 |
|
|
$ |
14,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
513,294 |
|
|
$ |
625,029 |
|
|
$ |
240,737 |
|
|
$ |
151,409 |
|
|
$ |
102,264 |
|
|
$ |
311,644 |
|
|
$ |
150,206 |
|
|
$ |
2,094,583 |
|
Special mention |
|
|
8 |
|
|
|
180 |
|
|
|
952 |
|
|
|
— |
|
|
|
8,863 |
|
|
|
18,571 |
|
|
|
— |
|
|
|
28,574 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
272 |
|
|
|
688 |
|
|
|
1,235 |
|
|
|
3,176 |
|
|
|
— |
|
|
|
5,371 |
|
Nonaccrual |
|
|
— |
|
|
|
259 |
|
|
|
322 |
|
|
|
185 |
|
|
|
218 |
|
|
|
8,440 |
|
|
|
424 |
|
|
|
9,848 |
|
Total loans |
|
$ |
513,302 |
|
|
$ |
625,468 |
|
|
$ |
242,283 |
|
|
$ |
152,282 |
|
|
$ |
112,580 |
|
|
$ |
341,831 |
|
|
$ |
150,630 |
|
|
$ |
2,138,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
(138 |
) |
|
$ |
(14 |
) |
|
$ |
(52 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(124 |
) |
|
$ |
(328 |
) |
Recoveries |
|
|
43 |
|
|
|
1 |
|
|
|
— |
|
|
|
11 |
|
|
|
1 |
|
|
|
74 |
|
|
|
12 |
|
|
|
142 |
|
Total current period net (charge-offs) recoveries |
|
$ |
(95 |
) |
|
$ |
(13 |
) |
|
$ |
(52 |
) |
|
$ |
11 |
|
|
$ |
1 |
|
|
$ |
74 |
|
|
$ |
(112 |
) |
|
$ |
(186 |
) |
The following table summarizes the credit exposure in the Company’s loan portfolio, by year of origination, as of December 31, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Total |
|
Commercial and industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
176,972 |
|
|
$ |
31,337 |
|
|
$ |
16,207 |
|
|
$ |
6,449 |
|
|
$ |
3,493 |
|
|
$ |
14,657 |
|
|
$ |
74,364 |
|
|
$ |
323,479 |
|
Special mention |
|
|
— |
|
|
|
88 |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
102 |
|
Substandard |
|
|
— |
|
|
|
272 |
|
|
|
55 |
|
|
|
192 |
|
|
|
40 |
|
|
|
1 |
|
|
|
— |
|
|
|
560 |
|
Nonaccrual |
|
|
14 |
|
|
|
101 |
|
|
|
— |
|
|
|
22 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
148 |
|
Total commercial and industrial loans |
|
$ |
176,986 |
|
|
$ |
31,798 |
|
|
$ |
16,262 |
|
|
$ |
6,663 |
|
|
$ |
3,547 |
|
|
$ |
14,669 |
|
|
$ |
74,364 |
|
|
$ |
324,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(168 |
) |
|
$ |
(67 |
) |
|
$ |
(115 |
) |
|
$ |
— |
|
|
$ |
(61 |
) |
|
$ |
(411 |
) |
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
21 |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(168 |
) |
|
$ |
(67 |
) |
|
$ |
(115 |
) |
|
$ |
— |
|
|
$ |
(40 |
) |
|
$ |
(390 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
180,056 |
|
|
$ |
68,765 |
|
|
$ |
20,499 |
|
|
$ |
6,507 |
|
|
$ |
8,235 |
|
|
$ |
13,565 |
|
|
$ |
8,615 |
|
|
$ |
306,242 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
944 |
|
|
|
— |
|
|
|
— |
|
|
|
944 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
609 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
611 |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total construction and development loans |
|
$ |
180,056 |
|
|
$ |
68,765 |
|
|
$ |
21,108 |
|
|
$ |
6,509 |
|
|
$ |
9,179 |
|
|
$ |
13,565 |
|
|
$ |
8,615 |
|
|
$ |
307,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
134,617 |
|
|
$ |
93,806 |
|
|
$ |
80,733 |
|
|
$ |
59,380 |
|
|
$ |
43,457 |
|
|
$ |
145,477 |
|
|
$ |
16,065 |
|
|
$ |
573,535 |
|
Special mention |
|
|
— |
|
|
|
765 |
|
|
|
— |
|
|
|
— |
|
|
|
4,550 |
|
|
|
788 |
|
|
|
— |
|
|
|
6,103 |
|
Substandard |
|
|
— |
|
|
|
6,987 |
|
|
|
— |
|
|
|
10,041 |
|
|
|
12,981 |
|
|
|
12,553 |
|
|
|
— |
|
|
|
42,562 |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
69 |
|
|
|
32 |
|
|
|
337 |
|
|
|
80 |
|
|
|
642 |
|
Total commercial real estate loans |
|
$ |
134,617 |
|
|
$ |
101,558 |
|
|
$ |
80,857 |
|
|
$ |
69,490 |
|
|
$ |
61,020 |
|
|
$ |
159,155 |
|
|
$ |
16,145 |
|
|
$ |
622,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(17 |
) |
|
$ |
(56 |
) |
|
$ |
(472 |
) |
|
$ |
(271 |
) |
|
$ |
— |
|
|
$ |
(816 |
) |
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
(56 |
) |
|
$ |
(461 |
) |
|
$ |
(271 |
) |
|
$ |
— |
|
|
$ |
(786 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Total |
|
Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
94,491 |
|
|
$ |
11,868 |
|
|
$ |
8,664 |
|
|
$ |
7,456 |
|
|
$ |
5,191 |
|
|
$ |
11,145 |
|
|
$ |
6,290 |
|
|
$ |
145,105 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
|
|
26 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
72 |
|
|
|
— |
|
|
|
72 |
|
Nonaccrual |
|
|
— |
|
|
|
195 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
103 |
|
|
|
— |
|
|
|
298 |
|
Total farmland loans |
|
$ |
94,491 |
|
|
$ |
12,063 |
|
|
$ |
8,664 |
|
|
$ |
7,456 |
|
|
$ |
5,191 |
|
|
$ |
11,346 |
|
|
$ |
6,290 |
|
|
$ |
145,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
132,448 |
|
|
$ |
64,590 |
|
|
$ |
43,016 |
|
|
$ |
36,501 |
|
|
$ |
26,987 |
|
|
$ |
91,864 |
|
|
$ |
13,714 |
|
|
$ |
409,120 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
|
|
18 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
170 |
|
|
|
— |
|
|
|
— |
|
|
|
180 |
|
|
|
58 |
|
|
|
1,127 |
|
|
|
— |
|
|
|
1,535 |
|
Total 1-4 family residential loans |
|
$ |
132,618 |
|
|
$ |
64,590 |
|
|
$ |
43,016 |
|
|
$ |
36,681 |
|
|
$ |
27,045 |
|
|
$ |
93,009 |
|
|
$ |
13,714 |
|
|
$ |
410,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
16,663 |
|
|
$ |
4,286 |
|
|
$ |
6,436 |
|
|
$ |
908 |
|
|
$ |
474 |
|
|
$ |
2,113 |
|
|
$ |
91 |
|
|
$ |
30,971 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total multi-family residential loans |
|
$ |
16,663 |
|
|
$ |
4,286 |
|
|
$ |
6,436 |
|
|
$ |
908 |
|
|
$ |
474 |
|
|
$ |
2,113 |
|
|
$ |
91 |
|
|
$ |
30,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Total |
|
Consumer and overdrafts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
24,715 |
|
|
$ |
11,589 |
|
|
$ |
4,557 |
|
|
$ |
4,647 |
|
|
$ |
558 |
|
|
$ |
543 |
|
|
$ |
4,478 |
|
|
$ |
51,087 |
|
Special mention |
|
|
76 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
81 |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
56 |
|
|
|
27 |
|
|
|
10 |
|
|
|
62 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
160 |
|
Total consumer loans and overdrafts |
|
$ |
24,847 |
|
|
$ |
11,616 |
|
|
$ |
4,572 |
|
|
$ |
4,709 |
|
|
$ |
563 |
|
|
$ |
543 |
|
|
$ |
4,478 |
|
|
$ |
51,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
(285 |
) |
|
$ |
(36 |
) |
|
$ |
(57 |
) |
|
$ |
(32 |
) |
|
$ |
(2 |
) |
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
(414 |
) |
Recoveries |
|
|
61 |
|
|
|
3 |
|
|
|
— |
|
|
|
8 |
|
|
|
2 |
|
|
|
21 |
|
|
|
— |
|
|
|
95 |
|
Current period net |
|
$ |
(224 |
) |
|
$ |
(33 |
) |
|
$ |
(57 |
) |
|
$ |
(24 |
) |
|
$ |
— |
|
|
$ |
19 |
|
|
$ |
— |
|
|
$ |
(319 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
3,557 |
|
|
$ |
1,866 |
|
|
$ |
927 |
|
|
$ |
917 |
|
|
$ |
221 |
|
|
$ |
526 |
|
|
$ |
6,492 |
|
|
$ |
14,506 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Substandard |
|
|
— |
|
|
|
14 |
|
|
|
4 |
|
|
|
15 |
|
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
72 |
|
Nonaccrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
48 |
|
Total agricultural loans |
|
$ |
3,557 |
|
|
$ |
1,880 |
|
|
$ |
931 |
|
|
$ |
940 |
|
|
$ |
273 |
|
|
$ |
566 |
|
|
$ |
6,492 |
|
|
$ |
14,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Recoveries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
8 |
|
Current period net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8 |
|
|
$ |
— |
|
|
$ |
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
763,519 |
|
|
$ |
288,107 |
|
|
$ |
181,039 |
|
|
$ |
122,765 |
|
|
$ |
88,616 |
|
|
$ |
279,890 |
|
|
$ |
130,109 |
|
|
$ |
1,854,045 |
|
Special mention |
|
|
76 |
|
|
|
853 |
|
|
|
5 |
|
|
|
— |
|
|
|
5,521 |
|
|
|
832 |
|
|
|
— |
|
|
|
7,287 |
|
Substandard |
|
|
— |
|
|
|
7,273 |
|
|
|
668 |
|
|
|
10,250 |
|
|
|
13,060 |
|
|
|
12,626 |
|
|
|
— |
|
|
|
43,877 |
|
Nonaccrual |
|
|
240 |
|
|
|
323 |
|
|
|
134 |
|
|
|
341 |
|
|
|
95 |
|
|
|
1,618 |
|
|
|
80 |
|
|
|
2,831 |
|
Total loans |
|
$ |
763,835 |
|
|
$ |
296,556 |
|
|
$ |
181,846 |
|
|
$ |
133,356 |
|
|
$ |
107,292 |
|
|
$ |
294,966 |
|
|
$ |
130,189 |
|
|
$ |
1,908,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
|
$ |
(285 |
) |
|
$ |
(36 |
) |
|
$ |
(242 |
) |
|
$ |
(155 |
) |
|
$ |
(589 |
) |
|
$ |
(273 |
) |
|
$ |
(61 |
) |
|
$ |
(1,641 |
) |
Recoveries |
|
|
61 |
|
|
|
3 |
|
|
|
19 |
|
|
|
8 |
|
|
|
13 |
|
|
|
30 |
|
|
|
21 |
|
|
|
155 |
|
Total current period net charge-offs |
|
$ |
(224 |
) |
|
$ |
(33 |
) |
|
$ |
(223 |
) |
|
$ |
(147 |
) |
|
$ |
(576 |
) |
|
$ |
(243 |
) |
|
$ |
(40 |
) |
|
$ |
(1,486 |
) |
There were no loans classified in the “doubtful” or “loss” risk rating categories as of June 30, 2022 and December 31, 2021. The following tables presents the amortized cost basis of individually evaluated collateral-dependent loans by class of loan, and their impact on the ACL, as of June 30, 2022 and December 31, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
Real Estate |
|
|
Non-RE |
|
|
Total |
|
|
Allowance for Credit Losses Allocation |
|
Commercial and industrial |
|
$ |
718 |
|
|
$ |
— |
|
|
$ |
718 |
|
|
$ |
246 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
1,030 |
|
|
|
— |
|
|
|
1,030 |
|
|
|
354 |
|
Consumer |
|
|
— |
|
|
|
250 |
|
|
|
250 |
|
|
|
250 |
|
Total |
|
$ |
1,748 |
|
|
$ |
250 |
|
|
$ |
1,998 |
|
|
$ |
850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
Real Estate |
|
|
Non-RE |
|
|
Total |
|
|
Allowance for Credit Losses Allocation |
|
Commercial and industrial |
|
$ |
116 |
|
|
$ |
— |
|
|
$ |
116 |
|
|
$ |
40 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
|
609 |
|
|
|
— |
|
|
|
609 |
|
|
|
207 |
|
Commercial real estate |
|
|
4,319 |
|
|
|
— |
|
|
|
4,319 |
|
|
|
553 |
|
Total |
|
$ |
5,044 |
|
|
$ |
— |
|
|
$ |
5,044 |
|
|
$ |
800 |
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
30 to 59 Days
Past Due |
|
|
60 to 89 Days
Past Due |
|
|
90 Days
or Greater
Past Due |
|
|
Total
Past Due |
|
|
Current |
|
|
Total
Loans |
|
|
Recorded
Investment >
90 Days and
Accruing |
|
Commercial and industrial |
|
$ |
1,900 |
|
|
$ |
97 |
|
|
$ |
145 |
|
|
$ |
2,142 |
|
|
$ |
292,014 |
|
|
$ |
294,156 |
|
|
$ |
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and
development |
|
|
94 |
|
|
|
— |
|
|
|
— |
|
|
|
94 |
|
|
|
349,930 |
|
|
|
350,024 |
|
|
|
— |
|
Commercial real
estate |
|
|
8 |
|
|
|
87 |
|
|
|
6,734 |
|
|
|
6,829 |
|
|
|
742,774 |
|
|
|
749,603 |
|
|
|
— |
|
Farmland |
|
|
20 |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
166,289 |
|
|
|
166,309 |
|
|
|
— |
|
1-4 family residential |
|
|
784 |
|
|
|
186 |
|
|
|
411 |
|
|
|
1,381 |
|
|
|
449,548 |
|
|
|
450,929 |
|
|
|
— |
|
Multi-family residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
55,985 |
|
|
|
55,985 |
|
|
|
— |
|
Consumer |
|
|
60 |
|
|
|
47 |
|
|
|
306 |
|
|
|
413 |
|
|
|
56,020 |
|
|
|
56,433 |
|
|
|
— |
|
Agricultural |
|
|
71 |
|
|
|
6 |
|
|
|
71 |
|
|
|
148 |
|
|
|
14,354 |
|
|
|
14,502 |
|
|
|
— |
|
Overdrafts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
435 |
|
|
|
435 |
|
|
|
— |
|
Total |
|
$ |
2,937 |
|
|
$ |
423 |
|
|
$ |
7,667 |
|
|
$ |
11,027 |
|
|
$ |
2,127,349 |
|
|
$ |
2,138,376 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
30 to 59 Days
Past Due |
|
|
60 to 89 Days
Past Due |
|
|
90 Days
or Greater
Past Due |
|
|
Total
Past Due |
|
|
Current |
|
|
Total
Loans |
|
|
Recorded
Investment >
90 Days and
Accruing |
|
Commercial and industrial |
|
$ |
969 |
|
|
$ |
38 |
|
|
$ |
134 |
|
|
$ |
1,141 |
|
|
$ |
323,148 |
|
|
$ |
324,289 |
|
|
$ |
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and
development |
|
|
885 |
|
|
|
132 |
|
|
|
— |
|
|
|
1,017 |
|
|
|
306,780 |
|
|
|
307,797 |
|
|
|
— |
|
Commercial real
estate |
|
|
— |
|
|
|
360 |
|
|
|
350 |
|
|
|
710 |
|
|
|
622,132 |
|
|
|
622,842 |
|
|
|
— |
|
Farmland |
|
|
114 |
|
|
|
87 |
|
|
|
195 |
|
|
|
396 |
|
|
|
145,105 |
|
|
|
145,501 |
|
|
|
— |
|
1-4 family residential |
|
|
1,650 |
|
|
|
123 |
|
|
|
410 |
|
|
|
2,183 |
|
|
|
408,490 |
|
|
|
410,673 |
|
|
|
— |
|
Multi-family residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,971 |
|
|
|
30,971 |
|
|
|
— |
|
Consumer |
|
|
189 |
|
|
|
113 |
|
|
|
68 |
|
|
|
370 |
|
|
|
50,595 |
|
|
|
50,965 |
|
|
|
— |
|
Agricultural |
|
|
41 |
|
|
|
8 |
|
|
|
— |
|
|
|
49 |
|
|
|
14,590 |
|
|
|
14,639 |
|
|
|
— |
|
Overdrafts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
363 |
|
|
|
363 |
|
|
|
— |
|
Total |
|
$ |
3,848 |
|
|
$ |
861 |
|
|
$ |
1,157 |
|
|
$ |
5,866 |
|
|
$ |
1,902,174 |
|
|
$ |
1,908,040 |
|
|
$ |
— |
|
The following table presents information regarding nonaccrual loans as of:
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
|
December 31, 2021 |
|
Commercial and industrial |
|
$ |
184 |
|
|
$ |
148 |
|
Real estate: |
|
|
|
|
|
|
Commercial real estate |
|
|
7,426 |
|
|
|
642 |
|
Farmland |
|
|
97 |
|
|
|
298 |
|
1-4 family residential |
|
|
1,550 |
|
|
|
1,535 |
|
Consumer and overdrafts |
|
|
382 |
|
|
|
160 |
|
Agricultural |
|
|
209 |
|
|
|
48 |
|
Total |
|
$ |
9,848 |
|
|
$ |
2,831 |
|
Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is a restructuring in which a bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. There were no loans modified as TDRs during the six months ended June 30, 2022. The following table presents loans, by class, modified as TDRs during the year ended December 31, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2021 |
|
Number
of
Contracts |
|
|
Pre-Modification
Outstanding
Recorded
Investment |
|
|
Post-Modification
Outstanding
Recorded
Investment |
|
Troubled Debt Restructurings: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
1 |
|
|
|
17 |
|
|
|
14 |
|
Total |
|
|
1 |
|
|
$ |
17 |
|
|
$ |
14 |
|
There were four TDRs that subsequently defaulted during 2022 and remained on nonaccrual status as of June 30, 2022. There were no TDRs that subsequently defaulted during 2021. The TDRs described above did not increase the allowance for credit losses and resulted in no charge-offs during the six months ended June 30, 2022 or the year ended December 31, 2021.
|