Loans and Allowance for Credit Losses |
NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES Types of loans and normal collateral securing those loans are listed below. Commercial real estate: Commercial real estate loans include all loans secured by nonfarm, nonresidential properties and by multifamily residential properties, as well as 1-4 family investment-purpose real estate loans. Commercial and industrial: Commercial and industrial loans include loans used to purchase fixed assets, provide working capital or meet other financing needs of the business. Loans are normally secured by the assets being purchased or already owned by the borrower, inventory or accounts receivable. These may include SBA and other guaranteed or partially guaranteed types of loans. Residential real estate: Residential real estate loans include loans secured by primary or secondary personal residences. Agricultural real estate: Agricultural real estate loans are loans typically secured by farmland. Agricultural: Agricultural loans are primarily operating lines subject to annual farming revenues including productivity/yield of the agricultural commodities produced. These loans may be secured by growing crops, stored crops, livestock, equipment, and miscellaneous receivables. Consumer: Consumer loans may include installment loans, unsecured and secured personal lines of credit, overdraft protection and letters of credit. These loans are generally secured by consumer assets but may be unsecured. The following table lists categories of loans at September 30, 2022, and December 31, 2021.
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
Commercial real estate |
|
$ |
1,655,646 |
|
|
$ |
1,486,148 |
|
Commercial and industrial |
|
|
607,722 |
|
|
|
567,497 |
|
Residential real estate |
|
|
573,431 |
|
|
|
638,087 |
|
Agricultural real estate |
|
|
200,415 |
|
|
|
198,330 |
|
Agricultural |
|
|
115,048 |
|
|
|
166,975 |
|
Consumer |
|
|
102,761 |
|
|
|
98,590 |
|
Total loans |
|
|
3,255,023 |
|
|
|
3,155,627 |
|
Allowance for credit losses |
|
|
(46,499 |
) |
|
|
(48,365 |
) |
Net loans |
|
$ |
3,208,524 |
|
|
$ |
3,107,262 |
|
Included in the commercial and industrial loan balances at September 30, 2022, and December 31, 2021, are $7,152 and $44,783 of loans that were originated under the SBA PPP program. At September 30, 2022, and December 31, 2021, unamortized loan fees on these loans were $114 and $1,252. From time to time, the Company has purchased pools of residential real estate loans originated by other financial institutions to hold for investment with the intent to diversify the residential real estate portfolio. During the nine months ended September 30, 2022, the Company purchased one pool of residential mortgage loans totaling $795. During the first nine months of 2021, the Company purchased five pools of residential real estate loans totaling $214,181. As of September 30, 2022, and December 31, 2021, residential real estate loans include $334,241 and $372,069 of purchased residential real estate loans. The Company occasionally purchases the government guaranteed portion of loans originated by other financial institutions to hold for investment. During the nine months ended September 30, 2022, the Company purchased $2,293 in loans guaranteed by governmental agencies. Government guaranteed loans totaling $10,958 were purchased in the nine months ended September 30, 2021. The unamortized discount of merger purchase accounting adjustments related to non-purchase credit deteriorated loans included in the loan totals above are $3,947 with related loans of $312,707 at September 30, 2022, and $6,649 with related loans of $527,422 at December 31, 2021. Overdraft deposit accounts are reclassified and included in consumer loans above. These accounts totaled $642 at September 30, 2022, and $886 at December 31, 2021. The following tables present the activity in the allowance for credit losses by class for the three month periods ended September 30, 2022 and 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
Commercial Real Estate |
|
|
Commercial and Industrial |
|
|
Residential Real Estate |
|
|
Agricultural Real Estate |
|
|
Agricultural |
|
|
Consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
22,665 |
|
|
$ |
13,209 |
|
|
$ |
6,818 |
|
|
$ |
1,007 |
|
|
$ |
2,289 |
|
|
$ |
2,250 |
|
|
$ |
48,238 |
|
Provision for credit losses |
|
|
(1,712 |
) |
|
|
911 |
|
|
|
486 |
|
|
|
40 |
|
|
|
(202 |
) |
|
|
341 |
|
|
|
(136 |
) |
Loans charged-off |
|
|
(612 |
) |
|
|
(706 |
) |
|
|
(51 |
) |
|
|
— |
|
|
|
(44 |
) |
|
|
(266 |
) |
|
|
(1,679 |
) |
Recoveries |
|
|
7 |
|
|
|
1 |
|
|
|
7 |
|
|
|
1 |
|
|
|
— |
|
|
|
60 |
|
|
|
76 |
|
Total ending allowance balance |
|
$ |
20,348 |
|
|
$ |
13,415 |
|
|
$ |
7,260 |
|
|
$ |
1,048 |
|
|
$ |
2,043 |
|
|
$ |
2,385 |
|
|
$ |
46,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2021 |
|
Commercial Real Estate |
|
|
Commercial and Industrial |
|
|
Residential Real Estate |
|
|
Agricultural Real Estate |
|
|
Agricultural |
|
|
Consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
15,225 |
|
|
$ |
18,690 |
|
|
$ |
9,808 |
|
|
$ |
847 |
|
|
$ |
4,695 |
|
|
$ |
2,569 |
|
|
$ |
51,834 |
|
Provision for credit losses |
|
|
(2,723 |
) |
|
|
5,473 |
|
|
|
(1,473 |
) |
|
|
145 |
|
|
|
(366 |
) |
|
|
2 |
|
|
|
1,058 |
|
Loans charged-off |
|
|
(116 |
) |
|
|
(37 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(200 |
) |
|
|
(356 |
) |
Recoveries |
|
|
96 |
|
|
|
1 |
|
|
|
4 |
|
|
|
15 |
|
|
|
— |
|
|
|
111 |
|
|
|
227 |
|
Total ending allowance balance |
|
$ |
12,482 |
|
|
$ |
24,127 |
|
|
$ |
8,339 |
|
|
$ |
1,004 |
|
|
$ |
4,329 |
|
|
$ |
2,482 |
|
|
$ |
52,763 |
|
The following tables present the activity in the allowance for credit losses by class for the nine month periods ended September 30, 2022 and 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
Commercial Real Estate |
|
|
Commercial and Industrial |
|
|
Residential Real Estate |
|
|
Agricultural Real Estate |
|
|
Agricultural |
|
|
Consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
22,478 |
|
|
$ |
12,248 |
|
|
$ |
5,560 |
|
|
$ |
2,235 |
|
|
$ |
3,756 |
|
|
$ |
2,088 |
|
|
$ |
48,365 |
|
Provision for credit losses |
|
|
(1,293 |
) |
|
|
1,833 |
|
|
|
1,758 |
|
|
|
(1,195 |
) |
|
|
(1,668 |
) |
|
|
841 |
|
|
|
276 |
|
Loans charged-off |
|
|
(906 |
) |
|
|
(785 |
) |
|
|
(99 |
) |
|
|
— |
|
|
|
(45 |
) |
|
|
(760 |
) |
|
|
(2,595 |
) |
Recoveries |
|
|
69 |
|
|
|
119 |
|
|
|
41 |
|
|
|
8 |
|
|
|
— |
|
|
|
216 |
|
|
|
453 |
|
Total ending allowance balance |
|
$ |
20,348 |
|
|
$ |
13,415 |
|
|
$ |
7,260 |
|
|
$ |
1,048 |
|
|
$ |
2,043 |
|
|
$ |
2,385 |
|
|
$ |
46,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2021 |
|
Commercial Real Estate |
|
|
Commercial and Industrial |
|
|
Residential Real Estate |
|
|
Agricultural Real Estate |
|
|
Agricultural |
|
|
Consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance, prior to adoption of ASC 326 |
|
$ |
9,012 |
|
|
$ |
12,456 |
|
|
$ |
4,559 |
|
|
$ |
904 |
|
|
$ |
758 |
|
|
$ |
6,020 |
|
|
$ |
33,709 |
|
Cumulative effect adjustment of adopting ASC 326 |
|
|
5,612 |
|
|
|
4,167 |
|
|
|
8,870 |
|
|
|
167 |
|
|
|
(207 |
) |
|
|
(2,877 |
) |
|
|
15,732 |
|
Impact of adopting ASC 326 - PCD loans |
|
|
4,571 |
|
|
|
(218 |
) |
|
|
220 |
|
|
|
960 |
|
|
|
4,905 |
|
|
|
— |
|
|
|
10,438 |
|
Provision for credit losses |
|
|
(6,767 |
) |
|
|
7,749 |
|
|
|
(5,307 |
) |
|
|
(555 |
) |
|
|
(1,130 |
) |
|
|
(345 |
) |
|
|
(6,355 |
) |
Loans charged-off |
|
|
(169 |
) |
|
|
(98 |
) |
|
|
(12 |
) |
|
|
(505 |
) |
|
|
(1 |
) |
|
|
(575 |
) |
|
|
(1,360 |
) |
Recoveries |
|
|
223 |
|
|
|
71 |
|
|
|
9 |
|
|
|
33 |
|
|
|
4 |
|
|
|
259 |
|
|
|
599 |
|
Total ending allowance balance |
|
$ |
12,482 |
|
|
$ |
24,127 |
|
|
$ |
8,339 |
|
|
$ |
1,004 |
|
|
$ |
4,329 |
|
|
$ |
2,482 |
|
|
$ |
52,763 |
|
The following tables present the recorded investment in loans and the balance in the allowance for credit losses by portfolio and class based on method to determine allowance for credit loss as of September 30, 2022, and December 31, 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
Commercial Real Estate |
|
|
Commercial and Industrial |
|
|
Residential Real Estate |
|
|
Agricultural Real Estate |
|
|
Agricultural |
|
|
Consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for credit losses |
|
$ |
856 |
|
|
$ |
1,606 |
|
|
$ |
816 |
|
|
$ |
253 |
|
|
$ |
1,745 |
|
|
$ |
67 |
|
|
$ |
5,343 |
|
Collectively evaluated for credit losses |
|
|
19,492 |
|
|
|
11,809 |
|
|
|
6,444 |
|
|
|
795 |
|
|
|
298 |
|
|
|
2,318 |
|
|
|
41,156 |
|
Total |
|
$ |
20,348 |
|
|
$ |
13,415 |
|
|
$ |
7,260 |
|
|
$ |
1,048 |
|
|
$ |
2,043 |
|
|
$ |
2,385 |
|
|
$ |
46,499 |
|
Loan Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for credit losses |
|
$ |
5,528 |
|
|
$ |
8,345 |
|
|
$ |
3,407 |
|
|
$ |
3,882 |
|
|
$ |
4,558 |
|
|
$ |
289 |
|
|
$ |
26,009 |
|
Collectively evaluated for credit losses |
|
|
1,650,118 |
|
|
|
599,377 |
|
|
|
570,024 |
|
|
|
196,533 |
|
|
|
110,490 |
|
|
|
102,472 |
|
|
|
3,229,014 |
|
Total |
|
$ |
1,655,646 |
|
|
$ |
607,722 |
|
|
$ |
573,431 |
|
|
$ |
200,415 |
|
|
$ |
115,048 |
|
|
$ |
102,761 |
|
|
$ |
3,255,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
Commercial Real Estate |
|
|
Commercial and Industrial |
|
|
Residential Real Estate |
|
|
Agricultural Real Estate |
|
|
Agricultural |
|
|
Consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for credit losses |
|
$ |
4,381 |
|
|
$ |
3,650 |
|
|
$ |
892 |
|
|
$ |
1,488 |
|
|
$ |
3,546 |
|
|
$ |
75 |
|
|
$ |
14,032 |
|
Collectively evaluated for credit losses |
|
|
18,097 |
|
|
|
8,598 |
|
|
|
4,668 |
|
|
|
747 |
|
|
|
210 |
|
|
|
2,013 |
|
|
|
34,333 |
|
Total |
|
$ |
22,478 |
|
|
$ |
12,248 |
|
|
$ |
5,560 |
|
|
$ |
2,235 |
|
|
$ |
3,756 |
|
|
$ |
2,088 |
|
|
$ |
48,365 |
|
Loan Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for credit losses |
|
$ |
45,421 |
|
|
$ |
13,786 |
|
|
$ |
5,362 |
|
|
$ |
14,959 |
|
|
$ |
13,049 |
|
|
$ |
357 |
|
|
$ |
92,934 |
|
Collectively evaluated for credit losses |
|
|
1,440,727 |
|
|
|
553,711 |
|
|
|
632,725 |
|
|
|
183,371 |
|
|
|
153,926 |
|
|
|
98,233 |
|
|
|
3,062,693 |
|
Total |
|
$ |
1,486,148 |
|
|
$ |
567,497 |
|
|
$ |
638,087 |
|
|
$ |
198,330 |
|
|
$ |
166,975 |
|
|
$ |
98,590 |
|
|
$ |
3,155,627 |
|
The following table presents information related to nonaccrual loans at September 30, 2022, and December 31, 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
|
Unpaid Principal Balance |
|
|
Recorded Investment |
|
|
Allowance for Credit Losses Allocated |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
4,590 |
|
|
$ |
2,965 |
|
|
$ |
— |
|
Commercial and industrial |
|
|
2,745 |
|
|
|
1,995 |
|
|
|
— |
|
Residential real estate |
|
|
30 |
|
|
|
— |
|
|
|
— |
|
Agricultural real estate |
|
|
2,812 |
|
|
|
1,758 |
|
|
|
— |
|
Agricultural |
|
|
9 |
|
|
|
9 |
|
|
|
— |
|
Consumer |
|
|
17 |
|
|
|
10 |
|
|
|
— |
|
Subtotal |
|
|
10,203 |
|
|
|
6,737 |
|
|
|
— |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
2,574 |
|
|
|
2,376 |
|
|
|
775 |
|
Commercial and industrial |
|
|
9,903 |
|
|
|
5,541 |
|
|
|
1,246 |
|
Residential real estate |
|
|
3,534 |
|
|
|
3,269 |
|
|
|
807 |
|
Agricultural real estate |
|
|
1,965 |
|
|
|
1,510 |
|
|
|
237 |
|
Agricultural |
|
|
6,231 |
|
|
|
3,432 |
|
|
|
1,478 |
|
Consumer |
|
|
324 |
|
|
|
264 |
|
|
|
66 |
|
Subtotal |
|
|
24,531 |
|
|
|
16,392 |
|
|
|
4,609 |
|
Total |
|
$ |
34,734 |
|
|
$ |
23,129 |
|
|
$ |
4,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Unpaid Principal Balance |
|
|
Recorded Investment |
|
|
Allowance for Credit Losses Allocated |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial and industrial |
|
|
6,060 |
|
|
|
1,964 |
|
|
|
— |
|
Residential real estate |
|
|
609 |
|
|
|
429 |
|
|
|
— |
|
Agricultural real estate |
|
|
1,795 |
|
|
|
1,660 |
|
|
|
— |
|
Agricultural |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
|
49 |
|
|
|
49 |
|
|
|
— |
|
Subtotal |
|
|
8,513 |
|
|
|
4,102 |
|
|
|
— |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
7,690 |
|
|
|
6,833 |
|
|
|
1,632 |
|
Commercial and industrial |
|
|
4,976 |
|
|
|
4,593 |
|
|
|
1,800 |
|
Residential real estate |
|
|
5,170 |
|
|
|
4,646 |
|
|
|
888 |
|
Agricultural real estate |
|
|
3,726 |
|
|
|
2,738 |
|
|
|
637 |
|
Agricultural |
|
|
8,836 |
|
|
|
6,175 |
|
|
|
2,307 |
|
Consumer |
|
|
314 |
|
|
|
274 |
|
|
|
74 |
|
Subtotal |
|
|
30,712 |
|
|
|
25,259 |
|
|
|
7,338 |
|
Total |
|
$ |
39,225 |
|
|
$ |
29,361 |
|
|
$ |
7,338 |
|
The table below presents average recorded investment and interest income related to nonaccrual loans for the three and nine months ended September 30, 2022, and 2021. Interest income recognized in the following table was substantially recognized on the cash basis. The recorded investment in loans excludes accrued interest receivable due to immateriality.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended |
|
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
|
Average Recorded Investment |
|
|
Interest Income Recognized |
|
|
Average Recorded Investment |
|
|
Interest Income Recognized |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
2,646 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial and industrial |
|
|
1,979 |
|
|
|
157 |
|
|
|
— |
|
|
|
— |
|
Residential real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Agricultural real estate |
|
|
1,449 |
|
|
|
— |
|
|
|
3,022 |
|
|
|
— |
|
Agricultural |
|
|
5 |
|
|
|
— |
|
|
|
884 |
|
|
|
— |
|
Consumer |
|
|
5 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
Subtotal |
|
|
6,084 |
|
|
|
158 |
|
|
|
3,906 |
|
|
|
— |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
2,577 |
|
|
|
20 |
|
|
|
7,107 |
|
|
|
1 |
|
Commercial and industrial |
|
|
3,464 |
|
|
|
97 |
|
|
|
36,720 |
|
|
|
— |
|
Residential real estate |
|
|
3,086 |
|
|
|
18 |
|
|
|
2,870 |
|
|
|
24 |
|
Agricultural real estate |
|
|
1,924 |
|
|
|
2 |
|
|
|
2,501 |
|
|
|
— |
|
Agricultural |
|
|
3,594 |
|
|
|
— |
|
|
|
7,576 |
|
|
|
69 |
|
Consumer |
|
|
266 |
|
|
|
2 |
|
|
|
215 |
|
|
|
1 |
|
Subtotal |
|
|
14,911 |
|
|
|
139 |
|
|
|
56,989 |
|
|
|
95 |
|
Total |
|
$ |
20,995 |
|
|
$ |
297 |
|
|
$ |
60,895 |
|
|
$ |
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the nine months ended |
|
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
|
Average Recorded Investment |
|
|
Interest Income Recognized |
|
|
Average Recorded Investment |
|
|
Interest Income Recognized |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,528 |
|
|
$ |
— |
|
|
$ |
421 |
|
|
$ |
3 |
|
Commercial and industrial |
|
|
1,480 |
|
|
|
157 |
|
|
|
161 |
|
|
|
35 |
|
Residential real estate |
|
|
384 |
|
|
|
1 |
|
|
|
51 |
|
|
|
2 |
|
Agricultural real estate |
|
|
1,554 |
|
|
|
— |
|
|
|
2,307 |
|
|
|
82 |
|
Agricultural |
|
|
2 |
|
|
|
— |
|
|
|
2,156 |
|
|
|
— |
|
Consumer |
|
|
15 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
Subtotal |
|
|
4,963 |
|
|
|
159 |
|
|
|
5,096 |
|
|
|
122 |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
3,702 |
|
|
|
20 |
|
|
|
7,022 |
|
|
|
19 |
|
Commercial and industrial |
|
|
3,808 |
|
|
|
97 |
|
|
|
31,203 |
|
|
|
119 |
|
Residential real estate |
|
|
3,559 |
|
|
|
19 |
|
|
|
2,843 |
|
|
|
26 |
|
Agricultural real estate |
|
|
2,251 |
|
|
|
5 |
|
|
|
3,346 |
|
|
|
54 |
|
Agricultural |
|
|
4,437 |
|
|
|
— |
|
|
|
5,991 |
|
|
|
113 |
|
Consumer |
|
|
291 |
|
|
|
2 |
|
|
|
245 |
|
|
|
2 |
|
Subtotal |
|
|
18,048 |
|
|
|
143 |
|
|
|
50,650 |
|
|
|
333 |
|
Total |
|
$ |
23,011 |
|
|
$ |
302 |
|
|
$ |
55,746 |
|
|
$ |
455 |
|
The following tables present the aging of the recorded investment in past due loans as of September 30, 2022, and December 31, 2021, by portfolio and class of loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
30 - 59 Days Past Due |
|
|
60 - 89 Days Past Due |
|
|
Greater Than 90 Days Past Due Still On Accrual |
|
|
Nonaccrual |
|
|
Loans Not Past Due |
|
|
Total |
|
Commercial real estate |
|
$ |
787 |
|
|
$ |
940 |
|
|
$ |
— |
|
|
$ |
5,341 |
|
|
$ |
1,648,578 |
|
|
$ |
1,655,646 |
|
Commercial and industrial |
|
|
1,545 |
|
|
|
201 |
|
|
|
— |
|
|
|
7,536 |
|
|
|
598,440 |
|
|
|
607,722 |
|
Residential real estate |
|
|
626 |
|
|
|
2,525 |
|
|
|
— |
|
|
|
3,269 |
|
|
|
567,011 |
|
|
|
573,431 |
|
Agricultural real estate |
|
|
26 |
|
|
|
2 |
|
|
|
— |
|
|
|
3,268 |
|
|
|
197,119 |
|
|
|
200,415 |
|
Agricultural |
|
|
200 |
|
|
|
117 |
|
|
|
— |
|
|
|
3,441 |
|
|
|
111,290 |
|
|
|
115,048 |
|
Consumer |
|
|
490 |
|
|
|
77 |
|
|
|
— |
|
|
|
274 |
|
|
|
101,920 |
|
|
|
102,761 |
|
Total |
|
$ |
3,674 |
|
|
$ |
3,862 |
|
|
$ |
— |
|
|
$ |
23,129 |
|
|
$ |
3,224,358 |
|
|
$ |
3,255,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
30 - 59 Days Past Due |
|
|
60 - 89 Days Past Due |
|
|
Greater Than 90 Days Past Due Still On Accrual |
|
|
Nonaccrual |
|
|
Loans Not Past Due |
|
|
Total |
|
Commercial real estate |
|
$ |
4,633 |
|
|
$ |
408 |
|
|
$ |
256 |
|
|
$ |
6,833 |
|
|
$ |
1,474,018 |
|
|
$ |
1,486,148 |
|
Commercial and industrial |
|
|
424 |
|
|
|
88 |
|
|
|
— |
|
|
|
6,557 |
|
|
|
560,428 |
|
|
|
567,497 |
|
Residential real estate |
|
|
620 |
|
|
|
1,126 |
|
|
|
— |
|
|
|
5,075 |
|
|
|
631,266 |
|
|
|
638,087 |
|
Agricultural real estate |
|
|
28 |
|
|
|
57 |
|
|
|
— |
|
|
|
4,398 |
|
|
|
193,847 |
|
|
|
198,330 |
|
Agricultural |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
6,175 |
|
|
|
160,795 |
|
|
|
166,975 |
|
Consumer |
|
|
316 |
|
|
|
61 |
|
|
|
— |
|
|
|
323 |
|
|
|
97,890 |
|
|
|
98,590 |
|
Total |
|
$ |
6,026 |
|
|
$ |
1,740 |
|
|
$ |
256 |
|
|
$ |
29,361 |
|
|
$ |
3,118,244 |
|
|
$ |
3,155,627 |
|
Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. Consumer loans are considered pass credits unless downgraded due to payment status or reviewed as part of a larger credit relationship. Loans that participated in the short-term deferral program are not automatically considered classified solely due to a deferral, are subject to ongoing monitoring and will be downgraded or placed on nonaccrual if a noted weakness exists. The Company uses the following definitions for risk ratings. Pass: Loans classified as pass include all loans that do not fall under one of the three following categories. Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard: Loans 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 have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans, by type and year of origination, at September 30, 2022, is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Revolving Loans Converted to Term |
|
|
Total |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
301,156 |
|
|
$ |
266,358 |
|
|
$ |
204,570 |
|
|
$ |
101,138 |
|
|
$ |
122,674 |
|
|
$ |
183,136 |
|
|
$ |
466,019 |
|
|
$ |
762 |
|
|
$ |
1,645,813 |
|
Special mention |
|
|
294 |
|
|
|
220 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
572 |
|
|
|
— |
|
|
|
— |
|
|
|
1,086 |
|
Substandard |
|
|
79 |
|
|
|
4,346 |
|
|
|
364 |
|
|
|
119 |
|
|
|
— |
|
|
|
3,506 |
|
|
|
333 |
|
|
|
— |
|
|
|
8,747 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total commercial real estate |
|
$ |
301,529 |
|
|
$ |
270,924 |
|
|
$ |
204,934 |
|
|
$ |
101,257 |
|
|
$ |
122,674 |
|
|
$ |
187,214 |
|
|
$ |
466,352 |
|
|
$ |
762 |
|
|
$ |
1,655,646 |
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
154,208 |
|
|
$ |
93,861 |
|
|
$ |
73,112 |
|
|
$ |
43,101 |
|
|
$ |
7,352 |
|
|
$ |
12,248 |
|
|
$ |
187,129 |
|
|
$ |
6,857 |
|
|
$ |
577,868 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
683 |
|
|
|
3,857 |
|
|
|
— |
|
|
|
— |
|
|
|
4,540 |
|
Substandard |
|
|
314 |
|
|
|
4,227 |
|
|
|
2,208 |
|
|
|
10,144 |
|
|
|
1,470 |
|
|
|
811 |
|
|
|
6,140 |
|
|
|
— |
|
|
|
25,314 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total commercial and industrial |
|
$ |
154,522 |
|
|
$ |
98,088 |
|
|
$ |
75,320 |
|
|
$ |
53,245 |
|
|
$ |
9,505 |
|
|
$ |
16,916 |
|
|
$ |
193,269 |
|
|
$ |
6,857 |
|
|
$ |
607,722 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
24,760 |
|
|
$ |
304,919 |
|
|
$ |
6,340 |
|
|
$ |
14,632 |
|
|
$ |
49,317 |
|
|
$ |
109,027 |
|
|
$ |
60,725 |
|
|
$ |
277 |
|
|
$ |
569,997 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
|
188 |
|
|
|
313 |
|
|
|
2,800 |
|
|
|
83 |
|
|
|
— |
|
|
|
3,434 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total residential real estate |
|
$ |
24,760 |
|
|
$ |
304,919 |
|
|
$ |
6,390 |
|
|
$ |
14,820 |
|
|
$ |
49,630 |
|
|
$ |
111,827 |
|
|
$ |
60,808 |
|
|
$ |
277 |
|
|
$ |
573,431 |
|
Agricultural real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
26,733 |
|
|
$ |
21,192 |
|
|
$ |
29,551 |
|
|
$ |
13,296 |
|
|
$ |
7,995 |
|
|
$ |
20,043 |
|
|
$ |
75,339 |
|
|
$ |
300 |
|
|
$ |
194,449 |
|
Special mention |
|
|
874 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
612 |
|
|
|
750 |
|
|
|
— |
|
|
|
2,236 |
|
Substandard |
|
|
31 |
|
|
|
1,353 |
|
|
|
— |
|
|
|
116 |
|
|
|
491 |
|
|
|
1,702 |
|
|
|
37 |
|
|
|
— |
|
|
|
3,730 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total agricultural real estate |
|
$ |
27,638 |
|
|
$ |
22,545 |
|
|
$ |
29,551 |
|
|
$ |
13,412 |
|
|
$ |
8,486 |
|
|
$ |
22,357 |
|
|
$ |
76,126 |
|
|
$ |
300 |
|
|
$ |
200,415 |
|
Agricultural |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
17,159 |
|
|
$ |
9,796 |
|
|
$ |
10,165 |
|
|
$ |
3,363 |
|
|
$ |
2,484 |
|
|
$ |
2,353 |
|
|
$ |
62,356 |
|
|
$ |
150 |
|
|
$ |
107,826 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
92 |
|
|
|
22 |
|
|
|
375 |
|
|
|
665 |
|
|
|
— |
|
|
|
1,155 |
|
Substandard |
|
|
— |
|
|
|
1,017 |
|
|
|
1,838 |
|
|
|
2,003 |
|
|
|
397 |
|
|
|
230 |
|
|
|
582 |
|
|
|
— |
|
|
|
6,067 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total agricultural |
|
$ |
17,159 |
|
|
$ |
10,813 |
|
|
$ |
12,004 |
|
|
$ |
5,458 |
|
|
$ |
2,903 |
|
|
$ |
2,958 |
|
|
$ |
63,603 |
|
|
$ |
150 |
|
|
$ |
115,048 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
48,732 |
|
|
$ |
19,701 |
|
|
$ |
9,513 |
|
|
$ |
4,002 |
|
|
$ |
1,752 |
|
|
$ |
3,820 |
|
|
$ |
14,976 |
|
|
$ |
1 |
|
|
$ |
102,497 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
— |
|
|
|
102 |
|
|
|
25 |
|
|
|
86 |
|
|
|
16 |
|
|
|
35 |
|
|
|
— |
|
|
|
— |
|
|
|
264 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total consumer |
|
$ |
48,732 |
|
|
$ |
19,803 |
|
|
$ |
9,538 |
|
|
$ |
4,088 |
|
|
$ |
1,768 |
|
|
$ |
3,855 |
|
|
$ |
14,976 |
|
|
$ |
1 |
|
|
$ |
102,761 |
|
Total loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
572,748 |
|
|
$ |
715,827 |
|
|
$ |
333,251 |
|
|
$ |
179,532 |
|
|
$ |
191,574 |
|
|
$ |
330,627 |
|
|
$ |
866,544 |
|
|
$ |
8,347 |
|
|
$ |
3,198,450 |
|
Special mention |
|
|
1,168 |
|
|
|
220 |
|
|
|
1 |
|
|
|
92 |
|
|
|
705 |
|
|
|
5,416 |
|
|
|
1,415 |
|
|
|
— |
|
|
|
9,017 |
|
Substandard |
|
|
424 |
|
|
|
11,045 |
|
|
|
4,485 |
|
|
|
12,656 |
|
|
|
2,687 |
|
|
|
9,084 |
|
|
|
7,175 |
|
|
|
— |
|
|
|
47,556 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total loans |
|
$ |
574,340 |
|
|
$ |
727,092 |
|
|
$ |
337,737 |
|
|
$ |
192,280 |
|
|
$ |
194,966 |
|
|
$ |
345,127 |
|
|
$ |
875,134 |
|
|
$ |
8,347 |
|
|
$ |
3,255,023 |
|
Based on the analysis performed at December 31, 2021, the risk category of loans, by type and year of origination is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Prior |
|
|
Revolving Loans Amortized Cost |
|
|
Revolving Loans Converted to Term |
|
|
Total |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
301,947 |
|
|
$ |
212,444 |
|
|
$ |
159,374 |
|
|
$ |
134,465 |
|
|
$ |
72,249 |
|
|
$ |
164,363 |
|
|
$ |
409,109 |
|
|
$ |
594 |
|
|
$ |
1,454,545 |
|
Special mention |
|
|
126 |
|
|
|
885 |
|
|
|
— |
|
|
|
11,817 |
|
|
|
1,168 |
|
|
|
8,705 |
|
|
|
— |
|
|
|
— |
|
|
|
22,701 |
|
Substandard |
|
|
1,687 |
|
|
|
401 |
|
|
|
145 |
|
|
|
77 |
|
|
|
828 |
|
|
|
5,764 |
|
|
|
— |
|
|
|
— |
|
|
|
8,902 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total commercial real estate |
|
$ |
303,760 |
|
|
$ |
213,730 |
|
|
$ |
159,519 |
|
|
$ |
146,359 |
|
|
$ |
74,245 |
|
|
$ |
178,832 |
|
|
$ |
409,109 |
|
|
$ |
594 |
|
|
$ |
1,486,148 |
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
170,263 |
|
|
$ |
100,457 |
|
|
$ |
57,955 |
|
|
$ |
11,019 |
|
|
$ |
17,327 |
|
|
$ |
8,855 |
|
|
$ |
155,181 |
|
|
$ |
9,726 |
|
|
$ |
530,783 |
|
Special mention |
|
|
19 |
|
|
|
— |
|
|
|
1,958 |
|
|
|
1,482 |
|
|
|
284 |
|
|
|
5,750 |
|
|
|
— |
|
|
|
— |
|
|
|
9,493 |
|
Substandard |
|
|
4,200 |
|
|
|
5,410 |
|
|
|
10,238 |
|
|
|
1,417 |
|
|
|
444 |
|
|
|
43 |
|
|
|
5,469 |
|
|
|
— |
|
|
|
27,221 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total commercial and industrial |
|
$ |
174,482 |
|
|
$ |
105,867 |
|
|
$ |
70,151 |
|
|
$ |
13,918 |
|
|
$ |
18,055 |
|
|
$ |
14,648 |
|
|
$ |
160,650 |
|
|
$ |
9,726 |
|
|
$ |
567,497 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
336,775 |
|
|
$ |
24,633 |
|
|
$ |
22,520 |
|
|
$ |
60,461 |
|
|
$ |
34,453 |
|
|
$ |
102,363 |
|
|
$ |
51,584 |
|
|
$ |
184 |
|
|
$ |
632,973 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
Substandard |
|
|
— |
|
|
|
79 |
|
|
|
48 |
|
|
|
159 |
|
|
|
1,909 |
|
|
|
2,740 |
|
|
|
154 |
|
|
|
— |
|
|
|
5,089 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total residential real estate |
|
$ |
336,775 |
|
|
$ |
24,712 |
|
|
$ |
22,568 |
|
|
$ |
60,620 |
|
|
$ |
36,362 |
|
|
$ |
105,128 |
|
|
$ |
51,738 |
|
|
$ |
184 |
|
|
$ |
638,087 |
|
Agricultural real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
38,412 |
|
|
$ |
36,667 |
|
|
$ |
18,442 |
|
|
$ |
12,142 |
|
|
$ |
14,432 |
|
|
$ |
21,792 |
|
|
$ |
42,541 |
|
|
$ |
— |
|
|
$ |
184,428 |
|
Special mention |
|
|
682 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40 |
|
|
|
456 |
|
|
|
32 |
|
|
|
— |
|
|
|
1,210 |
|
Substandard |
|
|
1,705 |
|
|
|
206 |
|
|
|
6,020 |
|
|
|
592 |
|
|
|
2,530 |
|
|
|
554 |
|
|
|
1,085 |
|
|
|
— |
|
|
|
12,692 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total agricultural real estate |
|
$ |
40,799 |
|
|
$ |
36,873 |
|
|
$ |
24,462 |
|
|
$ |
12,734 |
|
|
$ |
17,002 |
|
|
$ |
22,802 |
|
|
$ |
43,658 |
|
|
$ |
— |
|
|
$ |
198,330 |
|
Agricultural |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
27,637 |
|
|
$ |
17,393 |
|
|
$ |
6,391 |
|
|
$ |
2,399 |
|
|
$ |
2,930 |
|
|
$ |
1,593 |
|
|
$ |
93,982 |
|
|
$ |
172 |
|
|
$ |
152,497 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
90 |
|
|
|
1,299 |
|
|
|
— |
|
|
|
645 |
|
|
|
— |
|
|
|
— |
|
|
|
2,034 |
|
Substandard |
|
|
3,456 |
|
|
|
2,112 |
|
|
|
1,414 |
|
|
|
1,651 |
|
|
|
137 |
|
|
|
1,164 |
|
|
|
2,510 |
|
|
|
— |
|
|
|
12,444 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total agricultural |
|
$ |
31,093 |
|
|
$ |
19,505 |
|
|
$ |
7,895 |
|
|
$ |
5,349 |
|
|
$ |
3,067 |
|
|
$ |
3,402 |
|
|
$ |
96,492 |
|
|
$ |
172 |
|
|
$ |
166,975 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
40,692 |
|
|
$ |
15,171 |
|
|
$ |
7,186 |
|
|
$ |
3,640 |
|
|
$ |
2,228 |
|
|
$ |
3,551 |
|
|
$ |
25,799 |
|
|
$ |
1 |
|
|
$ |
98,268 |
|
Special mention |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Substandard |
|
|
6 |
|
|
|
154 |
|
|
|
94 |
|
|
|
15 |
|
|
|
24 |
|
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
322 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total consumer |
|
$ |
40,698 |
|
|
$ |
15,325 |
|
|
$ |
7,280 |
|
|
$ |
3,655 |
|
|
$ |
2,252 |
|
|
$ |
3,580 |
|
|
$ |
25,799 |
|
|
$ |
1 |
|
|
$ |
98,590 |
|
Total loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk rating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
915,726 |
|
|
$ |
406,765 |
|
|
$ |
271,868 |
|
|
$ |
224,126 |
|
|
$ |
143,619 |
|
|
$ |
302,517 |
|
|
$ |
778,196 |
|
|
$ |
10,677 |
|
|
$ |
3,053,494 |
|
Special mention |
|
|
827 |
|
|
|
885 |
|
|
|
2,048 |
|
|
|
14,598 |
|
|
|
1,492 |
|
|
|
15,581 |
|
|
|
32 |
|
|
|
— |
|
|
|
35,463 |
|
Substandard |
|
|
11,054 |
|
|
|
8,362 |
|
|
|
17,959 |
|
|
|
3,911 |
|
|
|
5,872 |
|
|
|
10,294 |
|
|
|
9,218 |
|
|
|
— |
|
|
|
66,670 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total loans |
|
$ |
927,607 |
|
|
$ |
416,012 |
|
|
$ |
291,875 |
|
|
$ |
242,635 |
|
|
$ |
150,983 |
|
|
$ |
328,392 |
|
|
$ |
787,446 |
|
|
$ |
10,677 |
|
|
$ |
3,155,627 |
|
Troubled Debt Restructurings (“TDR”) Consistent with accounting and regulatory guidance, the Company recognizes a TDR when the Company, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that would not normally be considered. Regardless of the form of concession granted, the Company’s objective in offering a TDR is to increase the probability of repayment of a borrower’s loans. Qualified modifications under the CARES Act or Consolidated Appropriations Act ("CAA") are not considered TDRs and have been separately disclosed following the TDR discussion. The following table summarizes the Company’s TDRs by accrual status at September 30, 2022, and December 31, 2021. The allowance for credit losses on nonaccrual loans represents specific loan reserves, while the allowance on accrual loans represents collectively evaluated estimated losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
Nonaccrual Loan Balance |
|
|
Nonaccural Related Allowance for Credit Losses |
|
|
Accrual Loan Balance |
|
|
Accrual Related Allowance for Credit Losses |
|
|
Total TDR Loan Balance |
|
|
Total Related Allowance for Credit Losses |
|
Commercial real estate |
|
$ |
4,653 |
|
|
$ |
610 |
|
|
$ |
2,937 |
|
|
$ |
90 |
|
|
$ |
7,590 |
|
|
$ |
700 |
|
Commercial and industrial |
|
|
4,103 |
|
|
|
888 |
|
|
|
— |
|
|
|
— |
|
|
|
4,103 |
|
|
|
888 |
|
Residential real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Agricultural real estate |
|
|
2,863 |
|
|
|
126 |
|
|
|
— |
|
|
|
— |
|
|
|
2,863 |
|
|
|
126 |
|
Agricultural |
|
|
946 |
|
|
|
265 |
|
|
|
1,650 |
|
|
|
271 |
|
|
|
2,596 |
|
|
|
536 |
|
Total troubled debt restructurings |
|
$ |
12,565 |
|
|
$ |
1,889 |
|
|
$ |
4,587 |
|
|
$ |
361 |
|
|
$ |
17,152 |
|
|
$ |
2,250 |
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
Nonaccrual |
|
|
Related Allowance for Credit Losses |
|
Commercial real estate |
|
$ |
5,784 |
|
|
$ |
1,370 |
|
Commercial and industrial |
|
|
54 |
|
|
|
27 |
|
Residential real estate |
|
|
1,547 |
|
|
|
13 |
|
Agricultural real estate |
|
|
2,122 |
|
|
|
488 |
|
Agricultural |
|
|
1,292 |
|
|
|
480 |
|
Total troubled debt restructurings |
|
$ |
10,799 |
|
|
$ |
2,378 |
|
At September 30, 2022, and December 31, 2021, there were no commitments to lend additional amounts on these loans. There were no loan modifications during the three month period ending September 30, 2022, and $8,328 in loan modifications during the nine month period ending September 30, 2022, that were considered to be troubled debt restructurings. There was a total of $1,460 in loan modifications considered to be troubled debt restructurings that occurred during the three and nine month periods ended September 30, 2021. There was $89 and $104 in interest income recognized on loans modified as TDRs during the three and nine month periods ended September 30, 2022. The following table shows loans that subsequently defaulted on their modified terms within the twelve months preceding September 30, 2022, and September 30, 2021. Default is determined at 90 or more days past due, charge-off, or foreclosure.
|
|
|
|
|
|
|
|
|
|
|
As of September 30, |
|
|
|
2022 |
|
|
2021 |
|
Commercial and industrial |
|
$ |
3,778 |
|
|
$ |
— |
|
Agricultural |
|
|
1,329 |
|
|
|
— |
|
Total TDR loans subsequently defaulted |
|
$ |
5,107 |
|
|
$ |
— |
|
As of September 30, 2022, in connection with the COVID-19 relief provided by the CARES Act, the Company had no loans deferred as compared to December 31, 2021, with 20 deferrals of either the full loan payment or the principal component of the loan payment on outstanding loan balances of $36.3 million. These deferrals were not considered troubled debt restructurings based on the CARES Act or regulatory guidance. The following table lists loans included in the payment deferral program under the CARES Act by deferment type and category at December 31, 2021. There were no CARES Act deferred loans at September 30, 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Commercial Real Estate |
|
|
Commercial and Industrial |
|
|
Total |
|
3 months principal and interest, then 6 months principal only |
|
$ |
31,884 |
|
|
$ |
3,052 |
|
|
$ |
34,936 |
|
6 months principal and interest, then 9 months principal only |
|
|
971 |
|
|
|
398 |
|
|
|
1,369 |
|
Total loans |
|
$ |
32,855 |
|
|
$ |
3,450 |
|
|
$ |
36,305 |
|
The classification status of loans participating in the payment deferral program at December 31, 2021, is listed below. There were no such deferrals at September 30, 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Unclassified |
|
|
Classified |
|
|
Total |
|
Commercial real estate |
|
$ |
32,855 |
|
|
$ |
— |
|
|
$ |
32,855 |
|
Commercial and industrial |
|
|
3,450 |
|
|
|
— |
|
|
|
3,450 |
|
Total loans |
|
$ |
36,305 |
|
|
$ |
— |
|
|
$ |
36,305 |
|
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit loss expense recognized within other non-interest expense on the consolidated statements of income and included in other liabilities on the consolidated balance sheets. The estimated credit loss includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate of expected credit loss is based on the historical loss rate for the class of loan the commitments would be classified as if funded. The following table lists allowance for credit losses on off-balance-sheet credit exposures as of September 30, 2022, and December 31, 2021.
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses |
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
Commercial real estate |
|
$ |
319 |
|
|
$ |
484 |
|
Commercial and industrial |
|
|
851 |
|
|
|
1,323 |
|
Residential real estate |
|
|
46 |
|
|
|
16 |
|
Agricultural |
|
|
2 |
|
|
|
3 |
|
Consumer |
|
|
285 |
|
|
|
397 |
|
Total allowance for credit losses |
|
$ |
1,503 |
|
|
$ |
2,223 |
|
|