Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Amounts Recognized in Balance Sheet

Loans in the accompanying consolidated balance sheets consisted of the following:

	September 30,			December 31,
	2021			2020
Real estate loans:
Non-farm non-residential owner occupied	$	361,467,237		$	353,273,098
Non-farm non-residential non-owner occupied		345,359,923			277,804,173
Residential		179,971,204			140,621,495
Construction, development & other		124,548,118			98,207,147
Farmland		8,308,914			4,653,344
Commercial & industrial		538,550,714			645,927,775
Consumer		4,417,542			4,157,339
Other		49,770,699			31,447,517
		1,612,394,351			1,556,091,888
Allowance for loan losses		(15,571,366	)		(11,979,492	)
Loans, net	$	1,596,822,985		$	1,544,112,396

Schedule of Non-accrual and Accruing Past Due Loans, Segregated by Class of Loans

Non-accrual loans and accruing loans past due more than 90 days segregated by class of loans were as follows:

	September 30,				December 31,
	2021				2020
	Non-accrual		Accruing loans past due more than 90 days		Non-accrual		Accruing loans past due more than 90 days
Real estate loans:
Non-farm non-residential owner occupied	$	1,031,558	$	—	$	1,943,744	$	568,591
Non-farm non-residential non-owner occupied		352,991		—		384,581		—
Residential		133,011		—		85,538		183,535
Construction, development & other		251,246		—		264,038		—
Farmland		—		—		—		—
Commercial & industrial		9,162,115		560,559		4,155,064		—
Consumer		—		—		—		—
Other		—		—		—		—
Purchased credit impaired		146,552		—		423,680		—
	$	11,077,473	$	560,559	$	7,256,645	$	752,126

Schedule of Aging Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans, segregated by class of loans, were as follows:

	September 30, 2021
	30-59 days		60-89 days		Over 90 days		Total past due		Total current		Total loans
Real estate loans:
Non-farm non-residential    owner occupied	$	108,122	$	157,768	$	1,031,558	$	1,297,448	$	360,169,789	$	361,467,237
Non-farm non-residential    non-owner occupied		728,653		—		352,991		1,081,644		340,855,253		341,936,897
Residential		—		2,100,000		133,011		2,233,011		177,655,554		179,888,565
Construction,    development & other		—		51,619		251,246		302,865		120,117,461		120,420,326
Farmland		—		—		—		—		8,308,914		8,308,914
Commercial & industrial		6,419,082		335,406		9,722,674		16,477,162		521,866,545		538,343,707
Consumer		12,305		—		—		12,305		4,405,237		4,417,542
Other		23,994		—		—		23,994		49,746,705		49,770,699
Purchased credit impaired		—		—		146,552		146,552		7,693,912		7,840,464
	$	7,292,156	$	2,644,793	$	11,638,032	$	21,574,981	$	1,590,819,370	$	1,612,394,351

	December 31, 2020
	30-59 days		60-89 days		Over 90 days		Total past due		Total current		Total loans
Real estate loans:
Non-farm non-residential    owner occupied	$	286,624	$	—	$	2,512,335	$	2,798,959	$	350,474,139	$	353,273,098
Non-farm non-residential    non-owner occupied		1,733,940		—		384,581		2,118,521		271,785,063		273,903,584
Residential		286,977		—		269,073		556,050		140,047,638		140,603,688
Construction,    development & other		—		—		264,038		264,038		93,819,610		94,083,648
Farmland		—		—		—		—		4,653,344		4,653,344
Commercial & industrial		842,059		255,907		4,155,064		5,253,030		640,404,991		645,658,021
Consumer		49,645		—		—		49,645		4,107,694		4,157,339
Other		21,991				—		21,991		31,425,526		31,447,517
Purchased credit impaired		—		—		423,680		423,680		7,887,969		8,311,649
	$	3,221,236	$	255,907	$	8,008,771	$	11,485,914	$	1,544,605,974	$	1,556,091,888

Schedule of Impaired Loans by Class of Loans

The following tables present impaired loans by class of loans:

	September 30, 2021
	Unpaid contractual principal balance		Recorded investment with no allowance		Recorded investment with allowance		Total recorded investment		Related allowance		Average recorded investment during year
Real estate loans:
Non-farm non-residential    owner occupied	$	1,031,558	$	1,031,558	$	—	$	1,031,558	$	—	$	1,062,661
Non-farm non-residential    non-owner occupied		5,671,819		5,658,937		—		5,658,937		—		5,694,624
Residential		135,851		133,011		—		133,011		—		141,148
Construction,    development & other		248,576		251,245		—		251,245		—		258,976
Farmland		—		—		—		—		—		—
Commercial & industrial		12,199,640		8,913,207		3,286,433		12,199,640		1,062,227		12,812,262
Consumer		—		—		—		—		—		—
Other		—		—		—		—		—		—
Purchased credit impaired		68,356		—		68,356		68,356		17,656		72,548
	$	19,355,800	$	15,987,958	$	3,354,789	$	19,342,747	$	1,079,883	$	20,042,219

	December 31, 2020
	Unpaid contractual principal balance		Recorded investment with no allowance		Recorded investment with allowance		Total recorded investment		Related allowance		Average recorded investment during year
Real estate loans:
Non-farm non-residential    owner occupied	$	1,943,744	$	1,943,744	$	—	$	1,943,744	$	—	$	1,754,100
Non-farm non-residential    non-owner occupied		384,581		384,581		—		384,581		—		406,069
Residential		85,539		82,699		—		82,699		—		70,163
Construction,    development & other		264,038		266,708		—		266,708		—		187,446
Farmland		—		—		—		—		—		—
Commercial & industrial		4,737,100		3,706,167		1,030,933		4,737,100		136,309		4,904,295
Consumer		—		—		—		—		—		—
Other		—		—		—		—		—		—
Purchased credit impaired		—		—		—		—		—		—
	$	7,415,002	$	6,383,899	$	1,030,933	$	7,414,832	$	136,309	$	7,322,073

Summary of Troubled Debt Restructuring

During the nine months ended September 30, 2021, the terms of one loan were modified as a troubled debt restructuring (“TDR”). The following table presents modifications of loans the Company considers to be TDR loans:

	September 30, 2021
	Loan modifications
	Number  of  loans		Pre- restructuring recorded investment		Post- restructuring recorded investment		Adjusted interest rate		Payment deferral		Combined rate and payment deferral
Real estate loans:
Non-farm non-residential    owner occupied		—	$	—	$	—	$	—	$	—	$	—
Non-farm non-residential    non-owner occupied		1		5,305,945		5,305,945		—		5,305,945		—
Residential		—		—		—		—		—		—
Construction,    development & other		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Commercial & industrial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Other		—		—		—		—		—		—
		1	$	5,305,945	$	5,305,945	$	—	$	5,305,945	$	—
	December 31, 2020
	Loan modifications
	Number of loans		Pre- restructuring recorded investment		Post- restructuring recorded investment		Adjusted interest rate		Payment deferral		Combined rate and payment deferral
Real estate loans:
Non-farm non-residential    owner occupied		3	$	927,205	$	927,205	$	—	$	927,205	$	—
Non-farm non-residential    non-owner occupied		—		—		—		—		—		—
Residential		—		—		—		—		—		—
Construction,    development & other		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Commercial & industrial		2		757,786		757,786		—		757,786		—
Consumer		—		—		—		—		—		—
Other		—		—		—		—		—		—
		5	$	1,684,991	$	1,684,991	$	—	$	1,684,991	$	—

Summary of Internal Ratings of Loans

The following tables summarize the Company’s internal ratings of its loans:

	September 30, 2021
	Pass		Special Mention		Substandard		Purchased Credit Impaired		Doubtful		Total
Real estate loans:
Non-farm non-residential    owner occupied	$	350,054,949	$	6,987,549	$	4,424,739	$	—	$	—	$	361,467,237
Non-farm non-residential    non-owner occupied		326,199,331		8,391,737		7,345,829		3,423,026		—		345,359,923
Residential		179,359,279		—		529,286		82,639		—		179,971,204
Construction,    development & other		120,169,081		—		251,245		4,127,792		—		124,548,118
Farmland		8,308,914		—		—		—		—		8,308,914
Commercial & industrial		525,099,678		4,760,400		8,483,629		207,007		—		538,550,714
Consumer		4,394,433		23,109		—		—		—		4,417,542
Other		49,770,699		—		—		—		—		49,770,699
	$	1,563,356,364	$	20,162,795	$	21,034,728	$	7,840,464	$	—	$	1,612,394,351

	December 31, 2020
	Pass		Special Mention		Substandard		Purchased Credit Impaired		Doubtful		Total
Real estate loans:
Non-farm non-residential    owner occupied	$	335,441,780	$	12,189,268	$	5,642,050	$	—	$	—	$	353,273,098
Non-farm non-residential    non-owner occupied		255,467,635		12,705,637		5,730,312		3,900,589		—		277,804,173
Residential		139,742,887		—		860,801		17,807		—		140,621,495
Construction,    development & other		93,816,941		—		266,707		4,123,499		—		98,207,147
Farmland		4,653,344		—		—		—		—		4,653,344
Commercial & industrial		629,093,318		6,143,686		9,847,172		269,754		573,845		645,927,775
Consumer		4,157,339		—		—		—		—		4,157,339
Other		31,447,517		—		—		—		—		31,447,517
	$	1,493,820,761	$	31,038,591	$	22,347,042	$	8,311,649	$	573,845	$	1,556,091,888

Schedule of Allowance for Loan Losses

The following tables detail the activity in the allowance for loan losses by portfolio segment:

	For the Nine Months Ended September 30, 2021
	Beginning balance		Provision for loan losses			Charge-offs			Recoveries		Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	2,607,494	$	969,665		$	—		$	—	$	3,577,159
Non-farm non-residential    non-owner occupied		3,107,186		1,773,874			—			—		4,881,060
Residential		1,218,132		(223,994	)		—			—		994,138
Construction, development & other		931,830		(77,038	)		—			—		854,792
Farmland		31,800		7,864			—			—		39,664
Commercial & industrial		3,858,284		1,367,686			(315,399	)		100,054		5,010,625
Consumer		35,354		(31,008	)		—			1,650		5,996
Other		189,412		35,951			(19,876	)		2,445		207,932
	$	11,979,492	$	3,823,000		$	(335,275	)	$	104,149	$	15,571,366

	For the Nine Months Ended September 30, 2020
	Beginning balance		Provision for loan losses			Charge-offs			Recoveries		Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	2,158,228	$	1,706,890		$	—		$	—	$	3,865,118
Non-farm non-residential    non-owner occupied		1,626,882		1,071,398			—			—		2,698,280
Residential		373,226		310,843			—			—		684,069
Construction, development & other		330,326		273,323			—			—		603,649
Farmland		28,817		(11,946	)		—			—		16,871
Commercial & industrial		3,503,848		(835,106	)		(616,020	)		32,966		2,085,688
Consumer		15,761		6,965			(7,042	)		2,989		18,673
Other		86,274		27,633			—			—		113,907
	$	8,123,362	$	2,550,000		$	(623,062	)	$	35,955	$	10,086,255

	For the Three Months Ended September 30, 2021
	Beginning balance		Provision for loan losses			Charge-offs			Recoveries		Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	3,935,447	$	(358,288	)	$	—		$	—	$	3,577,159
Non-farm non-residential    non-owner occupied		4,330,250		550,810			—			—		4,881,060
Residential		1,050,327		(56,189	)		—			—		994,138
Construction, development & other		681,472		173,320			—			—		854,792
Farmland		34,202		5,462			—			—		39,664
Commercial & industrial		3,192,366		1,962,453			(145,750	)		1,556		5,010,625
Consumer		9,961		(3,965	)		—			—		5,996
Other		159,846		49,397			(1,311	)		—		207,932
	$	13,393,871	$	2,323,000		$	(147,061	)	$	1,556	$	15,571,366

	For the Three Months Ended September 30, 2020
	Beginning balance		Provision for loan losses			Charge-offs		Recoveries			Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	3,795,183		73,957		$	—	$	(4,022	)	$	3,865,118
Non-farm non-residential    non-owner occupied		2,470,107		228,173			—		—			2,698,280
Residential		611,456		72,613			—		—			684,069
Construction, development & other		831,169		(227,520	)		—		—			603,649
Farmland		20,067		(3,196	)		—		—			16,871
Commercial & industrial		2,241,754		(158,409	)		—		2,343			2,085,688
Consumer		18,200		473			—		—			18,673
Other		99,998		13,909			—		—			113,907
	$	10,087,934	$	—		$	—	$	(1,679	)	$	10,086,255

Schedule of Allowance for Loan Losses for Loans Evaluated for Impairment Individually and Collectively

The following tables summarize the allocation of the allowance for loan losses, by portfolio segment, for loans evaluated for impairment individually and collectively:

	September 30, 2021
	Period end amounts of ALLL allocated to loans evaluated for impairment:
	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	—	$	3,577,159	$	—	$	3,577,159
Non-farm non-residential non-owner occupied		—		4,881,060		—		4,881,060
Residential		—		994,138		—		994,138
Construction, development & other		—		854,792		—		854,792
Farmland		—		39,664		—		39,664
Commercial & industrial		1,062,227		3,930,742		17,656		5,010,625
Consumer		—		5,996		—		5,996
Other		—		207,932		—		207,932
	$	1,062,227	$	14,491,483	$	17,656	$	15,571,366

	December 31, 2020
	Period end amounts of ALLL allocated to loans evaluated for impairment:
	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	—	$	2,607,494	$	—	$	2,607,494
Non-farm non-residential non-owner occupied		—		3,107,186		—		3,107,186
Residential		—		1,218,132		—		1,218,132
Construction, development & other		—		931,830		—		931,830
Farmland		—		31,800		—		31,800
Commercial & industrial		136,309		3,721,975		—		3,858,284
Consumer		—		35,354		—		35,354
Other		—		189,412		—		189,412
	$	136,309	$	11,843,183	$	—	$	11,979,492

Schedule Of Allowance for Loan losses For loans evaluated for Impairment Methodology

The Company’s recorded investment in loans related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows:

	September 30, 2021
	Loans evaluated for impairment:
	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	1,031,558	$	360,435,679	$	—	$	361,467,237
Non-farm non-residential non-owner occupied		5,658,937		339,700,986		—		345,359,923
Residential		133,011		179,838,193		—		179,971,204
Construction, development & other		251,245		124,296,873		—		124,548,118
Farmland		—		8,308,914		—		8,308,914
Commercial & industrial		12,267,996		526,214,362		68,356		538,550,714
Consumer		—		4,417,542		—		4,417,542
Other		—		49,770,699		—		49,770,699
	$	19,342,747	$	1,592,983,248	$	68,356	$	1,612,394,351

	December 31, 2020
	Loans evaluated for impairment:
	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	1,943,744	$	351,329,354		—	$	353,273,098
Non-farm non-residential non-owner occupied		384,581		273,519,003		3,900,589		277,804,173
Residential		82,699		140,520,989		17,807		140,621,495
Construction, development & other		266,708		93,816,940		4,123,499		98,207,147
Farmland		—		4,653,344		—		4,653,344
Commercial & industrial		4,737,100		640,920,921		269,754		645,927,775
Consumer		—		4,157,339		—		4,157,339
Other		—		31,447,517		—		31,447,517
	$	7,414,832	$	1,540,365,407	$	8,311,649	$	1,556,091,888

Schedule of Acquisition of Loans

In connection with the acquisition of loans from Heritage Bancorp, Inc. and its subsidiary, Heritage Bank on January 1, 2020, the PCI loan portfolio was accounted for at fair value as follows:

Contractual required payments	$	26,626,779
Non-accretable difference (expected loss)		15,026,950
Cash flows expected to be collected at acquisition		11,599,829
Accretable yield		1,850,260
Basis in acquired Heritage PCI loans	$	9,749,569

Schedule of Gross Contractual Amounts Receivable Balances By Portfolio Segment PCI Loans

The following table presents the gross contractual amounts receivable balances, by portfolio segment, and the carrying amount of PCI loans:

	September 30,		December 31,
	2021		2020
Real estate loans:
Non-farm non-residential owner occupied	$	—	$	—
Non-farm non-residential non-owner occupied		4,609,670		5,426,265
Residential		183,610		200,144
Construction, development & other		5,194,735		5,104,868
Farmland		—		—
Commercial & industrial		320,463		383,146
Consumer		—		—
Other		—		—
Total outstanding balances	$	10,308,478	$	11,114,423
Carrying amount	$	7,840,464	$	8,311,649

Schedule of Accretable Yield Collected on PCI Loans

Accretable yield, or income expected to be collected on PCI loans was as follows:

	September 30,			December 31,
	2021			2020
Balance at beginning of year	$	2,260,759		$	82,566
New loans acquired from Heritage acquisition		—			2,725,993
Accretion of income		(192,605	)		(807,552	)
Reclassifications from non-accretable difference		—			259,752
Disposals		—			—
Balance at end of period	$	2,068,154		$	2,260,759