XML 38 R28.htm IDEA: XBRL DOCUMENT v3.21.2
Allowance for Credit Losses and Allowance for Unfunded Commitments and Letters of Credit (Tables)
 9 Months Ended
Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]  
Allowance for Credit Losses on Financing Receivables
The following tables show a detailed analysis of the ACL for the periods indicated:
Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Three Months Ended September 30, 2021(in thousands)
Commercial loans:
Commercial real estate$53,250 $— $518 $(2,016)$51,752 
Commercial business57,554 (1,183)328 (1,138)55,561 
Agriculture7,920 — 6 1,039 8,965 
Construction6,559 — 8 (200)6,367 
Consumer loans:
One-to-four family residential real estate16,519 — 203 2,133 18,855 
Other consumer1,186 (296)213 182 1,285 
Total$142,988 $(1,479)$1,276 $— $142,785 
Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Nine Months Ended September 30, 2021(in thousands)
Commercial loans:
Commercial real estate$68,934 $(316)$570 $(17,436)$51,752 
Commercial business45,250 (5,493)4,416 11,388 55,561 
Agriculture9,052 (122)23 12 8,965 
Construction7,636 — 575 (1,844)6,367 
Consumer loans:
One-to-four family residential real estate16,875 (146)757 1,369 18,855 
Other consumer1,393 (808)489 211 1,285 
Total$149,140 $(6,885)$6,830 $(6,300)$142,785 
Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Three Months Ended September 30, 2020(in thousands)
Commercial loans:
Commercial real estate$50,233 $— $65 $11,026 $61,324 
Commercial business53,186 (3,164)1,124 (574)50,572 
Agriculture14,868 (1,269)27 (1,165)12,461 
Construction7,953 — 11 999 8,963 
Consumer loans:
One-to-four family residential real estate23,711 (16)1,301 (2,889)22,107 
Other consumer1,595 (133)76 3 1,541 
Total$151,546 $(4,582)$2,604 $7,400 $156,968 
Beginning BalanceImpact of Adopting ASC 326Charge-offsRecoveriesProvision
(Recapture)		Ending Balance
Nine Months Ended September 30, 2020(in thousands)
Commercial loans:
Commercial real estate$20,340 $7,533 $(101)$92 $33,460 $61,324 
Commercial business30,292 762 (10,290)2,795 27,013 50,572 
Agriculture15,835 (9,325)(5,995)69 11,877 12,461 
Construction8,571 (1,750)— 688 1,454 8,963 
Consumer loans:
One-to-four family residential real estate7,435 4,237 (26)2,005 8,456 22,107 
Other consumer883 778 (599)330 149 1,541 
Unallocated612 (603)— — (9)— 
Total83,968 1,632 (17,011)5,979 82,400 156,968 
Changes in the Allowance for Unfunded Commitments and Letters of Credit
Changes in the allowance for unfunded commitments and letters of credit, a component of “Other liabilities” in the Consolidated Balance Sheets, are summarized as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(in thousands)
Beginning balance$10,000 $8,800 $8,300 $3,430 
Impact of adopting ASC 326— — — 1,570 
Net changes in the allowance for unfunded commitments and letters of credit500 800 2,200 4,600 
Ending balance$10,500 $9,600 $10,500 $9,600 
Financing Receivable Credit Quality Indicators
The following is an analysis of the credit quality of our loan portfolio as of the periods indicated:
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
 Term Loans
Amortized Cost Basis by Origination Year
20212020201920182017PriorTotal (1)
September 30, 2021(in thousands)
Commercial loans:
Commercial real estate
Pass$1,250,051 $490,402 $460,118 $359,635 $342,653 $823,529 $58,180 $4,263 $3,788,831 
Special mention21,356 10,947 24,415 9,575 26,238 29,400 — 2,199 124,130 
Substandard10,148 1,659 53,222 5,944 25,747 76,825 1,978 — 175,523 
Total commercial real estate$1,281,555 $503,008 $537,755 $375,154 $394,638 $929,754 $60,158 $6,462 $4,088,484 
Commercial business
Pass$864,775 $418,353 $279,874 $224,100 $140,381 $260,224 $1,033,171 $21,028 $3,241,906 
Special mention109 19 6,223 1,487 145 127 59,678 244 68,032 
Substandard5,412 3,911 22,329 27,519 20,825 28,389 16,382 1,646 126,413 
Total commercial business$870,296 $422,283 $308,426 $253,106 $161,351 $288,740 $1,109,231 $22,918 $3,436,351 
Agriculture
Pass$150,807 $78,668 $73,200 $31,159 $48,274 $78,461 $283,932 $1,770 $746,271 
Special mention3,158 1,078 700 186 64 — 3,913 — 9,099 
Substandard6,429 7,398 7,676 1,830 4,709 1,140 30,823 610 60,615 
Total agriculture$160,394 $87,144 $81,576 $33,175 $53,047 $79,601 $318,668 $2,380 $815,985 
Construction
Pass$174,463 $80,720 $8,279 $3,238 $2,110 $4,569 $32,315 $310 $306,004 
Substandard— — 20,511 — — 54 — — 20,565 
Total construction$174,463 $80,720 $28,790 $3,238 $2,110 $4,623 $32,315 $310 $326,569 
Consumer loans:
One-to-four family residential real estate
Pass$290,818 $131,779 $48,990 $40,142 $18,438 $55,278 $234,434 $1,426 $821,305 
Substandard1,235 398 193 — 85 527 62 72 2,572 
Total one-to-four family real estate$292,053 $132,177 $49,183 $40,142 $18,523 $55,805 $234,496 $1,498 $823,877 
Other consumer
Pass$5,483 $2,841 $1,895 $1,467 $582 $947 $15,662 $1,201 $30,078 
Substandard— 15 — — 1 2 23 — 41 
Total consumer$5,483 $2,856 $1,895 $1,467 $583 $949 $15,685 $1,201 $30,119 
Total$2,784,244 $1,228,188 $1,007,625 $706,282 $630,252 $1,359,472 $1,770,553 $34,769 $9,521,385 
Less:
Allowance for credit losses142,785 
Loans, net$9,378,600 
__________
(1) Loans that are on short-term deferments are treated as Pass loans and will not be reported as past due provided that they are performing in accordance with the modified terms.
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Term Loans
Amortized Cost Basis by Origination Year
20202019201820172016PriorTotal
December 31, 2020(in thousands)
Commercial loans:
Commercial real estate
Pass$674,444 $645,328 $478,881 $502,112 $408,972 $946,980 $52,049 $11,332 $3,720,098 
Special mention3,348 39,374 21,285 30,232 46,197 50,115 5 2,139 192,695 
Substandard2,916 24,860 13,571 15,652 43,735 41,138 3,389 4,259 149,520 
Total commercial real estate$680,708 $709,562 $513,737 $547,996 $498,904 $1,038,233 $55,443 $17,730 $4,062,313 
Commercial business
Pass$1,087,400 $366,435 $324,360 $199,010 $218,313 $214,677 $1,000,725 $11,540 $3,422,460 
Special mention3,002 26,361 8,471 24,582 7,004 10,650 22,426 — 102,496 
Substandard3,625 7,376 11,061 5,905 6,396 3,743 32,134 2,772 73,012 
Total commercial business$1,094,027 $400,172 $343,892 $229,497 $231,713 $229,070 $1,055,285 $14,312 $3,597,968 
Agriculture
Pass$142,163 $90,612 $44,434 $58,366 $58,893 $59,396 $244,135 $9,299 $707,298 
Special mention— 90 285 33 — — 85 13 506 
Substandard5,193 12,480 5,868 4,258 284 3,502 38,780 1,458 71,823 
Total agriculture$147,356 $103,182 $50,587 $62,657 $59,177 $62,898 $283,000 $10,770 $779,627 
Construction
Pass$134,693 $66,974 $10,066 $3,498 $763 $1,805 $29,323 $3,753 $250,875 
Substandard— 17,732 — — — 56 — — 17,788 
Total construction$134,693 $84,706 $10,066 $3,498 $763 $1,861 $29,323 $3,753 $268,663 
Consumer loans:
One-to-four family real estate
Pass$161,021 $77,756 $62,696 $29,737 $20,889 $78,098 $243,325 $3,655 $677,177 
Special mention— — 332 — — 195 — — 527 
Substandard— 849 227 1,166 344 1,968 1,005 307 5,866 
Total one-to-four family real estate$161,021 $78,605 $63,255 $30,903 $21,233 $80,261 $244,330 $3,962 $683,570 
Other consumer
Pass$5,548 $3,109 $3,886 $989 $244 $1,060 $19,911 $474 $35,221 
Substandard30 — — 5 — 170 53 40 298 
Total consumer$5,578 $3,109 $3,886 $994 $244 $1,230 $19,964 $514 $35,519 
Total$2,223,383 $1,379,336 $985,423 $875,545 $812,034 $1,413,553 $1,687,345 $51,041 $9,427,660 
Less:
Allowance for credit losses149,140 
Loans, net$9,278,520