Loans Receivable and the Allowance for Credit Losses | Loans Receivable and the Allowance for Credit Losses The composition of loans by class of receivable was as follows: As of (in thousands) June 30, 2022 December 31, 2021 Agricultural $ 110,263 $ 103,417 Commercial and industrial 986,137 902,314 Commercial real estate: Construction & development 224,470 172,160 Farmland 181,820 144,673 Multifamily 239,676 244,503 Commercial real estate-other 1,213,974 1,143,205 Total commercial real estate 1,859,940 1,704,541 Residential real estate: One- to four- family first liens 430,157 333,308 One- to four- family junior liens 148,647 133,014 Total residential real estate 578,804 466,322 Consumer 76,008 68,418 Loans held for investment, net of unearned income 3,611,152 3,245,012 Allowance for credit losses (52,350) (48,700) Total loans held for investment, net $ 3,558,802 $ 3,196,312 Loans with unpaid principal in the amount of $828.1 million and $816.0 million at June 30, 2022 and December 31, 2021, respectively, were pledged to the FHLB as collateral for borrowings. Non-accrual and Delinquent Status Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more unless the loan is both well secured with marketable collateral and in the process of collection. All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual. A non-accrual loan may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. The following table presents the amortized cost basis of loans based on delinquency status: Age Analysis of Past-Due Financial Assets 90 Days or More Past Due And Accruing (in thousands) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total June 30, 2022 Agricultural $ 109,248 $ 330 $ 2 $ 683 $ 110,263 $ 11 Commercial and industrial 979,576 831 2,072 3,658 986,137 — Commercial real estate: Construction and development 223,275 1,195 — — 224,470 — Farmland 178,810 1,837 — 1,173 181,820 — Multifamily 238,210 90 — 1,376 239,676 — Commercial real estate-other 1,202,634 1,548 — 9,792 1,213,974 — Total commercial real estate 1,842,929 4,670 — 12,341 1,859,940 — Residential real estate: One- to four- family first liens 425,958 1,381 811 2,007 430,157 1,348 One- to four- family junior liens 147,529 297 14 807 148,647 — Total residential real estate 573,487 1,678 825 2,814 578,804 1,348 Consumer 75,784 99 95 30 76,008 — Total $ 3,581,024 $ 7,608 $ 2,994 $ 19,526 $ 3,611,152 $ 1,359 December 31, 2021 Agricultural $ 102,352 $ 244 $ — $ 821 $ 103,417 $ — Commercial and industrial 899,423 529 134 2,228 902,314 — Commercial real estate: Construction and development 171,169 396 — 595 172,160 — Farmland 141,814 116 — 2,743 144,673 — Multifamily 243,117 — 1,386 — 244,503 — Commercial real estate-other 1,129,073 8,417 306 5,409 1,143,205 — Total commercial real estate 1,685,173 8,929 1,692 8,747 1,704,541 — Residential real estate: One- to four- family first liens 330,992 1,057 1,057 202 333,308 — One- to four- family junior liens 132,392 261 135 226 133,014 — Total residential real estate 463,384 1,318 1,192 428 466,322 — Consumer 68,326 66 14 12 68,418 — Total $ 3,218,658 $ 11,086 $ 3,032 $ 12,236 $ 3,245,012 $ — The following table presents the amortized cost basis of loans on non-accrual status, amortized cost basis of loans on non-accrual status with no allowance for credit losses recorded, and loans past due 90 days or more and still accruing by class of loan: Nonaccrual Nonaccrual with no Allowance for Credit Losses 90 Days or More Past Due And Accruing (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Agricultural $ 1,083 $ 2,090 $ 794 $ 1,341 $ 11 $ — Commercial and industrial 5,910 3,803 408 1,341 — — Commercial real estate: Construction and development — 595 — 595 — — Farmland 3,754 5,499 3,439 4,156 — — Multifamily 2,325 987 1,684 323 — — Commercial real estate-other 10,267 16,544 7,214 1,063 — — Total commercial real estate 16,346 23,625 12,337 6,137 — — Residential real estate: One- to four- family first liens 1,487 1,275 77 345 1,348 — One- to four- family junior liens 1,102 713 — — — — Total residential real estate 2,589 1,988 77 345 1,348 — Consumer 50 34 — — — — Total $ 25,978 $ 31,540 $ 13,616 $ 9,164 $ 1,359 $ — The interest income recognized on loans that were on nonaccrual for the three months ended June 30, 2022 and June 30, 2021 was $205 thousand and $88 thousand, respectively. The interest income recognized on loans that were on nonaccrual for the six-months ended June 30, 2022 and June 30, 2021 was $275 thousand and $178 thousand, respectively. Credit Quality Information The Company aggregates 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, and other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis includes non-homogenous loans, such as agricultural, commercial and industrial, and commercial real estate loans. Loans not meeting the criteria described below that are analyzed individually are considered to be pass-rated. The Company uses the following definitions for risk ratings: Special Mention/Watch - A special mention/watch asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention/watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard - Substandard loans 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 Company 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 known facts, conditions and values, highly questionable and improbable. Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Homogenous loans, including residential real estate and consumer loans, are not individually risk rated. Instead, these loans are categorized based on performance: performing and nonperforming. Nonperforming loans include those loans on nonaccrual and loans greater than 90 days past due and on accrual. The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of June 30, 2022. As of June 30, 2022, there were no 'loss' rated credits. Term Loans by Origination Year Revolving Loans June 30, 2022 (in thousands) 2022 2021 2020 2019 2018 Prior Total Agricultural Pass $ 21,529 $ 17,771 $ 6,849 $ 3,638 $ 1,150 $ 1,109 $ 47,682 $ 99,728 Special mention / watch 2,164 1,069 204 284 — 617 1,744 6,082 Substandard 1,848 652 703 5 300 303 642 4,453 Doubtful — — — — — — — — Total $ 25,541 $ 19,492 $ 7,756 $ 3,927 $ 1,450 $ 2,029 $ 50,068 $ 110,263 Commercial and industrial Pass $ 144,928 $ 248,426 $ 169,374 $ 57,301 $ 34,176 $ 126,043 $ 165,361 $ 945,609 Special mention / watch 1,606 771 1,867 387 40 18,043 2,424 25,138 Substandard 153 111 2,483 1,093 1,050 3,753 6,747 15,390 Doubtful — — — — — — — — Total $ 146,687 $ 249,308 $ 173,724 $ 58,781 $ 35,266 $ 147,839 $ 174,532 $ 986,137 CRE - Construction and development Pass $ 56,549 $ 112,213 $ 36,246 $ 2,548 $ 1,530 $ 1,915 $ 12,110 $ 223,111 Special mention / watch — 510 — 125 — — — 635 Substandard 297 — — — — 427 — 724 Doubtful — — — — — — — — Total $ 56,846 $ 112,723 $ 36,246 $ 2,673 $ 1,530 $ 2,342 $ 12,110 $ 224,470 CRE - Farmland Pass $ 37,340 $ 56,167 $ 32,008 $ 12,168 $ 8,919 $ 13,337 $ 1,950 $ 161,889 Special mention / watch 1,937 3,122 3,222 1,248 619 266 — 10,414 Substandard — 1,996 2,577 1,290 1,585 2,069 — 9,517 Doubtful — — — — — — — — Total $ 39,277 $ 61,285 $ 37,807 $ 14,706 $ 11,123 $ 15,672 $ 1,950 $ 181,820 CRE - Multifamily Pass $ 25,914 $ 78,036 $ 90,365 $ 17,818 $ 2,646 $ 6,431 $ 63 $ 221,273 Special mention / watch 12 — — 208 5,988 1,734 — 7,942 Substandard 308 8,440 1,713 — — — — 10,461 Doubtful — — — — — — — — Total $ 26,234 $ 86,476 $ 92,078 $ 18,026 $ 8,634 $ 8,165 $ 63 $ 239,676 CRE - other Pass $ 185,950 $ 323,293 $ 323,255 $ 89,412 $ 34,667 $ 88,194 $ 55,902 $ 1,100,673 Special mention / watch 6,717 1,924 24,589 4,557 10,356 11,700 1,839 61,682 Substandard 1,507 1,633 23,739 15,108 1,888 7,744 — 51,619 Doubtful — — — — — — — — Total $ 194,174 $ 326,850 $ 371,583 $ 109,077 $ 46,911 $ 107,638 $ 57,741 $ 1,213,974 RRE - One- to four- family first liens Performing $ 86,699 $ 114,509 $ 71,319 $ 30,276 $ 25,881 $ 87,378 $ 10,751 $ 426,813 Nonperforming — 79 35 42 325 2,863 — 3,344 Total $ 86,699 $ 114,588 $ 71,354 $ 30,318 $ 26,206 $ 90,241 $ 10,751 $ 430,157 RRE - One- to four- family junior liens Performing $ 23,071 $ 26,025 $ 10,183 $ 3,410 $ 4,292 $ 7,286 $ 73,222 $ 147,489 Nonperforming — — — 205 757 91 105 1,158 Total $ 23,071 $ 26,025 $ 10,183 $ 3,615 $ 5,049 $ 7,377 $ 73,327 $ 148,647 Consumer Performing $ 18,785 $ 26,537 $ 10,974 $ 4,888 $ 2,790 $ 6,793 $ 5,156 $ 75,923 Nonperforming — — 37 28 10 10 — 85 Total $ 18,785 $ 26,537 $ 11,011 $ 4,916 $ 2,800 $ 6,803 $ 5,156 $ 76,008 Total by Credit Quality Indicator Category Pass $ 472,210 $ 835,906 $ 658,097 $ 182,885 $ 83,088 $ 237,029 $ 283,068 $ 2,752,283 Special mention / watch 12,436 7,396 29,882 6,809 17,003 32,360 6,007 111,893 Substandard 4,113 12,832 31,215 17,496 4,823 14,296 7,389 92,164 Doubtful — — — — — — — — Performing 128,555 167,071 92,476 38,574 32,963 101,457 89,129 650,225 Nonperforming — 79 72 275 1,092 2,964 105 4,587 Total $ 617,314 $ 1,023,284 $ 811,742 $ 246,039 $ 138,969 $ 388,106 $ 385,698 $ 3,611,152 The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of December 31, 2021. As of December 31, 2021, there were no 'loss' rated credits. Term Loans by Origination Year Revolving Loans December 31, 2021 (in thousands) 2021 2020 2019 2018 2017 Prior Total Agricultural Pass $ 20,145 $ 8,604 $ 4,367 $ 1,260 $ 885 $ 947 $ 58,119 $ 94,327 Special mention / watch 1,255 148 245 — 17 993 1,685 4,343 Substandard 649 827 126 221 4 278 2,642 4,747 Doubtful — — — — — — — — Total $ 22,049 $ 9,579 $ 4,738 $ 1,481 $ 906 $ 2,218 $ 62,446 $ 103,417 Commercial and industrial Pass $ 297,285 $ 199,324 $ 56,258 $ 35,522 $ 60,294 $ 75,342 $ 132,323 $ 856,348 Special mention / watch 4,268 2,342 781 470 4,304 14,274 6,938 33,377 Substandard 8 1,772 1,255 772 37 2,922 5,823 12,589 Doubtful — — — — — — — — Total $ 301,561 $ 203,438 $ 58,294 $ 36,764 $ 64,635 $ 92,538 $ 145,084 $ 902,314 CRE - Construction and development Pass $ 90,662 $ 37,098 $ 4,942 $ 1,611 $ 1,543 $ 578 $ 33,197 $ 169,631 Special mention / watch 874 — 169 — — — — 1,043 Substandard — 879 596 — — 11 — 1,486 Doubtful — — — — — — — — Total $ 91,536 $ 37,977 $ 5,707 $ 1,611 $ 1,543 $ 589 $ 33,197 $ 172,160 CRE - Farmland Pass $ 51,682 $ 33,870 $ 18,674 $ 5,105 $ 5,060 $ 10,240 $ 1,812 $ 126,443 Special mention / watch 3,105 3,824 — 734 292 223 — 8,178 Substandard 1,580 2,004 1,681 2,562 1,667 558 — 10,052 Doubtful — — — — — — — — Total $ 56,367 $ 39,698 $ 20,355 $ 8,401 $ 7,019 $ 11,021 $ 1,812 $ 144,673 CRE - Multifamily Pass $ 97,188 $ 96,389 $ 19,234 $ 2,754 $ 4,555 $ 3,813 $ 273 $ 224,206 Special mention / watch 7,871 — — 6,000 1,859 544 — 16,274 Substandard 663 2,049 — — — 1,311 — 4,023 Doubtful — — — — — — — — Total $ 105,722 $ 98,438 $ 19,234 $ 8,754 $ 6,414 $ 5,668 $ 273 $ 244,503 CRE - other Pass $ 325,902 $ 384,591 $ 94,449 $ 37,960 $ 60,890 $ 60,543 $ 45,910 $ 1,010,245 Special mention / watch 5,302 26,239 5,172 11,243 2,557 1,905 1,768 54,186 Substandard 4,182 48,885 12,497 5,401 973 6,836 — 78,774 Doubtful — — — — — — — — Total $ 335,386 $ 459,715 $ 112,118 $ 54,604 $ 64,420 $ 69,284 $ 47,678 $ 1,143,205 RRE - One- to four- family first liens Performing $ 115,539 $ 77,086 $ 27,279 $ 24,697 $ 16,425 $ 65,676 $ 5,331 $ 332,033 Nonperforming 352 20 45 295 — 563 — 1,275 Total $ 115,891 $ 77,106 $ 27,324 $ 24,992 $ 16,425 $ 66,239 $ 5,331 $ 333,308 RRE - One- to four- family junior liens Performing $ 29,904 $ 13,335 $ 4,295 $ 5,109 $ 3,574 $ 5,104 $ 70,980 $ 132,301 Nonperforming 31 — 156 198 16 207 105 713 Total $ 29,935 $ 13,335 $ 4,451 $ 5,307 $ 3,590 $ 5,311 $ 71,085 $ 133,014 Consumer Performing $ 33,124 $ 14,386 $ 5,917 $ 4,080 $ 1,686 $ 5,778 $ 3,412 $ 68,383 Nonperforming — — 15 — 13 7 — 35 Total $ 33,124 $ 14,386 $ 5,932 $ 4,080 $ 1,699 $ 5,785 $ 3,412 $ 68,418 Total by Credit Quality Indicator Category Pass $ 882,864 $ 759,876 $ 197,924 $ 84,212 $ 133,227 $ 151,463 $ 271,634 $ 2,481,200 Special mention / watch 22,675 32,553 6,367 18,447 9,029 17,939 10,391 117,401 Substandard 7,082 56,416 16,155 8,956 2,681 11,916 8,465 111,671 Doubtful — — — — — — — — Performing 178,567 104,807 37,491 33,886 21,685 76,558 79,723 532,717 Nonperforming 383 20 216 493 29 777 105 2,023 Total $ 1,091,571 $ 953,672 $ 258,153 $ 145,994 $ 166,651 $ 258,653 $ 370,318 $ 3,245,012 Allowance for Credit Losses At June 30, 2022, the economic forecast used by the Company showed the following: (1) Midwest unemployment – decreases over the next two forecasted quarters, with increases in the third and fourth forecasted quarters; (2) Year-to-year change in national retail sales - increases over the next four forecasted quarters; (3) Year-to-year change in CRE Index - increases over the next four forecasted quarters; (4) Year-to-year change in U.S. GDP - increases over the next four forecasted quarters; (5) Year-to-year change in National Home Price Index – increases over the next three forecasted quarters, with a decrease in the fourth forecasted quarter; and (6) Rental Vacancy - increases over the next four forecasted quarters. The increase in the ACL between the six-months ended June 30, 2021 and the six-months ended June 30, 2022 is reflective of the initial allowance for credit losses of $3.4 million recorded for the PCD loans acquired, as well as $3.1 million related to the acquired non-PCD loans. Net loan charge-offs were $0.3 million for the three-months ended June 30, 2022 as compared to net loan charge-offs of $0.4 million for the three-months ended June 30, 2021. Net loan charge-offs were $2.5 million for the six-months ended June 30, 2022 as compared to net loan charge-offs of $0.7 million for the six-months ended June 30, 2021. We have made a policy election to report interest receivable as a separate line on the balance sheet. Accrued interest receivable, which is recorded within 'Other Assets', totaled $11.5 million at June 30, 2022 and $10.4 million at December 31, 2021 and is excluded from the estimate of credit losses. The changes in the allowance for credit losses by portfolio segment were as follows: For the Three Months Ended June 30, 2022 and 2021 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total For the Three Months Ended June 30, 2022 Beginning balance $ 380 $ 17,275 $ 24,057 $ 3,908 $ 580 $ 46,200 PCD allowance established in acquisition 512 1,473 1,227 159 — $ 3,371 Charge-offs (1) (330) — (8) (101) (440) Recoveries 1 93 31 4 30 159 Credit loss expense (benefit) (1) 95 2,655 (916) 1,111 115 3,060 Ending balance $ 987 $ 21,166 $ 24,399 $ 5,174 $ 624 $ 52,350 For the Three Months Ended June 30, 2021 Beginning balance $ 1,110 $ 13,644 $ 30,425 $ 4,655 $ 816 $ 50,650 Charge-offs (113) (195) (350) (71) (111) (840) Recoveries 21 314 9 47 43 434 Credit loss (benefit) expense (1) (5) 24 (1,568) (555) (140) (2,244) Ending balance $ 1,013 $ 13,787 $ 28,516 $ 4,076 $ 608 $ 48,000 (1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense of $0.2 million and $0.1 million related to off-balance sheet credit exposures for the three months ended June 30, 2022 and June 30, 2021, respectively. For the Six Months Ended June 30, 2022 and 2021 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total For the Six Months Ended June 30, 2022 Beginning balance $ 667 $ 17,294 $ 26,120 $ 4,010 $ 609 $ 48,700 PCD allowance established in acquisition 512 1,473 1,227 159 — $ 3,371 Charge-offs (1) (563) (2,184) (38) (285) (3,071) Recoveries 8 318 148 20 74 568 Credit loss expense (benefit) (1) (199) 2,644 (912) 1,023 226 2,782 Ending balance $ 987 $ 21,166 $ 24,399 $ 5,174 $ 624 $ 52,350 For the Six Months Ended June 30, 2021 Beginning balance $ 1,346 $ 15,689 $ 32,640 $ 4,882 $ 943 $ 55,500 Charge-offs (154) (861) (416) (106) (306) (1,843) Recoveries 48 606 315 56 96 1,121 Credit loss (benefit) expense (1) (227) (1,647) (4,023) (756) (125) (6,778) Ending balance $ 1,013 $ 13,787 $ 28,516 $ 4,076 $ 608 $ 48,000 (1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.5 million and $(0.1) million related to off-balance sheet credit exposures for the six-months ended June 30, 2022 and June 30, 2021, respectively. The composition of allowance for credit losses by portfolio segment based on evaluation method were as follows: As of June 30, 2022 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total Loans held for investment, net of unearned income Individually evaluated for impairment $ 3,094 $ 5,421 $ 24,509 $ 1,843 $ — $ 34,867 Collectively evaluated for impairment 107,169 980,716 1,835,431 576,961 76,008 3,576,285 Total $ 110,263 $ 986,137 $ 1,859,940 $ 578,804 $ 76,008 $ 3,611,152 Allowance for credit losses: Individually evaluated for impairment $ 511 $ 1,907 $ 1,497 $ 403 $ — $ 4,318 Collectively evaluated for impairment 476 19,259 22,902 4,771 624 48,032 Total $ 987 $ 21,166 $ 24,399 $ 5,174 $ 624 $ 52,350 As of December 31, 2021 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total Loans held for investment, net of unearned income Individually evaluated for impairment $ 1,341 $ 3,005 $ 23,118 $ 570 $ — $ 28,034 Collectively evaluated for impairment 102,076 899,309 1,681,423 465,752 68,418 3,216,978 Total $ 103,417 $ 902,314 $ 1,704,541 $ 466,322 $ 68,418 $ 3,245,012 Allowance for credit losses: Individually evaluated for impairment $ — $ 681 $ 2,193 $ 224 $ — $ 3,098 Collectively evaluated for impairment 667 16,613 23,927 3,786 609 45,602 Total $ 667 $ 17,294 $ 26,120 $ 4,010 $ 609 $ 48,700 The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: As of June 30, 2022 (in thousands) Primary Type of Collateral Real Estate Equipment Other Total ACL Allocation Agricultural $ 581 $ 2,513 $ — $ 3,094 $ 511 Commercial and industrial 1,410 2,124 1,887 5,421 1,907 Commercial real estate: Construction and development 418 — — 418 116 Farmland 6,255 — — 6,255 — Multifamily 2,325 — — 2,325 362 Commercial real estate-other 15,221 — 290 15,511 1,019 Residential real estate: One- to four- family first liens 1,123 — — 1,123 223 One- to four- family junior liens — — 720 720 180 Consumer — — — — — Total $ 27,333 $ 4,637 $ 2,897 $ 34,867 $ 4,318 As of December 31, 2021 (in thousands) Primary Type of Collateral Real Estate Equipment Other Total ACL Allocation Agricultural $ 916 $ 425 $ — $ 1,341 $ — Commercial and industrial 408 374 2,223 3,005 681 Commercial real estate: Construction and development 595 — — 595 — Farmland 5,185 — — 5,185 22 Multifamily 987 — — 987 387 Commercial real estate-other 16,130 — 221 16,351 1,784 Residential real estate: One- to four- family first liens 410 — — 410 64 One- to four- family junior liens — — 160 160 160 Consumer — — — — — Total $ 24,631 $ 799 $ 2,604 $ 28,034 $ 3,098 Troubled Debt Restructurings TDRs totaled $9.6 million and $20.0 million as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022, the Company had $8 thousand of commitments to lend additional funds to borrowers with loans classified as TDR. The following table sets forth information on the Company's TDRs by class of financing receivable occurring during the stated periods. TDRs include multiple concessions, and the disclosure classifications in the table are based on the primary concession provided to the borrower. Three Months Ended June 30, 2022 2021 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) CONCESSION - Interest rate reduction Farmland — $ — $ — 2 $ 1,982 $ 1,982 One- to four- family first liens — — — 1 171 171 CONCESSION - Extended maturity date Agricultural 1 12 12 — — — Commercial and industrial 4 512 502 — — — Farmland 4 988 888 — — — One- to four- family first liens — — — 1 85 85 Total 9 $ 1,512 $ 1,402 4 $ 2,238 $ 2,238 Six Months Ended June 30, 2022 2021 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) CONCESSION - Interest rate reduction Farmland — $ — $ — 2 $ 1,982 $ 1,982 One- to four- family first liens — — — 1 171 171 CONCESSION - Extended maturity date Agricultural 1 12 12 — — — Commercial and industrial 4 512 502 — — — Farmland 4 988 888 — — — One- to four- family first liens — — — 2 178 178 CONCESSION - Other Agricultural 1 140 140 — — — Farmland 3 1,529 1,529 — — — Commercial real estate-other — — — 1 44 44 One- to four- family first liens — — — 1 150 150 Total 13 $ 3,181 $ 3,071 7 $ 2,525 $ 2,525 Loans by class of financing receivable modified as TDRs that redefaulted within 12 months subsequent to restructure during the stated periods were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (dollars in thousands) CONCESSION - Extended maturity date Commercial and industrial 1 $ 403 — $ — 1 $ 403 — $ — Farmland 3 490 — — 3 490 — — Commercial real estate-other — — — — 1 7,388 — — Total 4 $ 893 — $ — 5 $ 8,281 — $ — |