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Allowance for Credit Losses and Unfunded Commitments and Letters of Credit (Tables)
 12 Months Ended
Dec. 31, 2022
Allowance For Credit Losses And Unfunded Loan Commitments And Letters Of Credit  
Allowance for Credit Losses on Financing Receivables
The following tables show a detailed analysis of the ACL for the years ended December 31, 2022, 2021 and 2020:

Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Year Ended December 31, 2022(in thousands)
Commercial loans:
Commercial real estate
$61,254 $(299)$207 $(6,306)$54,856 
Commercial business
54,712 (2,108)2,183 3,049 57,836 
Agriculture
8,148 (799)869 853 9,071 
Construction
5,397 — 387 7,358 13,142 
Consumer loans:
One-to-four family residential real estate
24,123 (3)943 (2,708)22,355 
Other consumer
1,944 (1,240)770 (296)1,178 
Total$155,578 $(4,449)$5,359 $1,950 $158,438 

Beginning BalanceInitial ACL recorded for PCD loans acquired during the periodCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Year Ended December 31, 2021(in thousands)
Commercial loans:
Commercial real estate
$68,934 $2,225 $(1,044)$633 $(9,494)$61,254 
Commercial business
45,250 30 (6,364)4,862 10,934 54,712 
Agriculture
9,052 38 (322)355 (975)8,148 
Construction
7,636 35 — 593 (2,867)5,397 
Consumer loans:
One-to-four family residential real estate
16,875 286 (170)907 6,225 24,123 
Other consumer
1,393 2 (1,163)735 977 1,944 
Unallocated— — — — — — 
Total$149,140 $2,616 $(9,063)$8,085 $4,800 $155,578 

 Beginning BalanceImpact of Adopting ASC 326Charge-offsRecoveriesProvision
(Recapture)		Ending Balance
Year Ended December 31, 2020(in thousands)
Commercial loans:
Commercial real estate
$20,340 $7,533 $(1,419)$131 $42,349 $68,934 
Commercial business
30,292 762 (12,396)3,438 23,154 45,250 
Agriculture
15,835 (9,325)(6,427)172 8,797 9,052 
Construction
8,571 (1,750)— 709 106 7,636 
Consumer loans:
One-to-four family residential real estate
7,435 4,237 (84)2,083 3,204 16,875 
Other consumer
883 778 (766)399 99 1,393 
Unallocated612 (603)— — (9)— 
Total$83,968 $1,632 $(21,092)$6,932 $77,700 $149,140 
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:
Years Ended December 31,
202220212020
(in thousands)
Beginning balance$8,500 $8,300 $3,430 
Impact of Adopting ASC 326— — 1,570 
Net changes in the allowance for unfunded commitments and letters of credit
(500)200 3,300 
Ending balance$8,000 $8,500 $8,300 
Financing Receivable Credit Quality Indicators
The following is an analysis of the credit quality of our loan portfolio as of December 31, 2022 and 2021:
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Term Loans
Amortized Cost Basis by Origination Year
20222021202020192018PriorTotal (1)
December 31, 2022(in thousands)
Commercial loans:
Commercial real estate
Pass$1,182,136 $1,009,480 $636,056 $588,494 $394,552 $1,295,185 $75,487 $12,551 $5,193,941 
Special mention1,698 — 1,357 15,199 1,513 13,590 — — 33,357 
Substandard318 7,460 20,317 30,422 2,904 60,343 3,723 — 125,487 
Total commercial real estate$1,184,152 $1,016,940 $657,730 $634,115 $398,969 $1,369,118 $79,210 $12,551 $5,352,785 
Commercial business
Pass$521,615 $658,452 $337,927 $208,199 $159,105 $247,086 $1,456,332 $9,736 $3,598,452 
Special mention1,129 3,681 617 6,335 187 193 17,988 74 30,204 
Substandard2,716 6,162 2,210 16,164 20,321 28,402 39,037 6,896 121,908 
Total commercial business$525,460 $668,295 $340,754 $230,698 $179,613 $275,681 $1,513,357 $16,706 $3,750,564 
Agriculture
Pass$141,623 $119,538 $68,621 $67,689 $20,570 $91,411 $301,607 $1,345 $812,404 
Special mention3,890 659 — 198 — 33 598 — 5,378 
Substandard1,425 1,280 2,104 2,986 20 6,105 17,201 — 31,121 
Total agriculture$146,938 $121,477 $70,725 $70,873 $20,590 $97,549 $319,406 $1,345 $848,903 
Construction
Pass$220,558 $208,472 $20,334 $14,329 $2,437 $3,192 $67,559 $1,037 $537,918 
Special mention— 734 — — — — — — 734 
Substandard— — — 1,717 443 49 — — 2,209 
Total construction$220,558 $209,206 $20,334 $16,046 $2,880 $3,241 $67,559 $1,037 $540,861 
Consumer loans:
One-to-four family residential real estate 
Pass$156,406 $354,364 $124,150 $37,546 $39,054 $84,403 $277,930 $1,288 $1,075,141 
Substandard— — — 253 498 932 510 160 2,353 
Total one-to-four family residential real estate$156,406 $354,364 $124,150 $37,799 $39,552 $85,335 $278,440 $1,448 $1,077,494 
Other consumer
Pass$5,235 $2,614 $1,169 $819 $1,209 $7,833 $21,276 $201 $40,356 
Substandard— — — — — 10 — — 10 
Total consumer$5,235 $2,614 $1,169 $819 $1,209 $7,843 $21,276 $201 $40,366 
Total$2,238,749 $2,372,896 $1,214,862 $990,350 $642,813 $1,838,767 $2,279,248 $33,288 $11,610,973 
Less:
Allowance for credit losses158,438 
Loans, net$11,452,535 
_________
(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
20212020201920182017PriorTotal
December 31, 2021(in thousands)
Commercial loans:
Commercial real estate
Pass$1,068,493 $760,545 $650,593 $492,348 $515,233 $1,180,115 $74,754 $3,644 $4,745,725 
Special mention2,252 — 19,016 6,196 163 27,270 — 2,199 57,096 
Substandard4,119 5,897 45,769 9,112 29,917 82,599 1,029 — 178,442 
Total commercial real estate$1,074,864 $766,442 $715,378 $507,656 $545,313 $1,289,984 $75,783 $5,843 $4,981,263 
Commercial business
Pass$891,957 $426,004 $280,823 $217,605 $144,363 $232,356 $1,028,616 $35,411 $3,257,135 
Special mention621 135 6,097 747 105 51 34,256 236 42,248 
Substandard4,329 4,610 18,393 28,066 20,568 27,462 18,796 1,661 123,885 
Total commercial business$896,907 $430,749 $305,313 $246,418 $165,036 $259,869 $1,081,668 $37,308 $3,423,268 
Agriculture
Pass$147,561 $87,964 $74,658 $29,739 $46,058 $79,693 $266,573 $5,448 $737,694 
Special mention162 — 445 — — — 565 — 1,172 
Substandard— 7,717 9,148 1,616 5,532 1,833 29,125 1,878 56,849 
Total agriculture$147,723 $95,681 $84,251 $31,355 $51,590 $81,526 $296,263 $7,326 $795,715 
Construction
Pass$228,661 $53,880 $35,795 $3,183 $3,285 $2,189 $55,765 $— $382,758 
Substandard— — 1,748 — — 249 — — 1,997 
Total construction$228,661 $53,880 $37,543 $3,183 $3,285 $2,438 $55,765 $— $384,755 
Consumer loans:
One-to-four family residential real estate
Pass$390,153 $140,799 $56,520 $51,549 $32,447 $111,307 $222,747 $1,347 $1,006,869 
Substandard85 470 183 562 234 4,736 485 284 7,039 
Total one-to-four family residential real estate$390,238 $141,269 $56,703 $52,111 $32,681 $116,043 $223,232 $1,631 $1,013,908 
Other consumer
Pass$7,045 $2,711 $1,950 $13,489 $560 $1,277 $15,853 $97 $42,982 
Substandard— — — — 1 13 23 9 46 
Total consumer$7,045 $2,711 $1,950 $13,489 $561 $1,290 $15,876 $106 $43,028 
Total$2,745,438 $1,490,732 $1,201,138 $854,212 $798,466 $1,751,150 $1,748,587 $52,214 $10,641,937 
Less:
Allowance for credit losses155,578 
Loans, net$10,486,359