Loans Held for Investment and Allowance for Credit Losses | Note 3 – Loans Held-for-Investment and Allowance for Credit Losses For the periods ended September 30, 2022 and 2021, and December 31, 2021, the following tables outline the Company’s loan portfolio by the ten portfolio segments where applicable. Loans held-for-investment by portfolio segment are as follows (dollars in thousands): September 30, December 31, 2022 2021 2021 Commercial: C&I* $ 871,335 $ 819,597 $ 837,075 Municipal 214,852 165,847 177,905 Total Commercial 1,086,187 985,444 1,014,980 Agricultural 76,937 98,947 98,089 Real Estate: Construction & Development 938,051 656,530 749,793 Farm 268,139 203,064 217,220 Non-Owner Occupied CRE 717,738 674,958 623,434 Owner Occupied CRE 945,665 824,231 821,653 Residential 1,536,180 1,328,798 1,334,419 Total Real Estate 4,405,773 3,687,581 3,746,519 Consumer: Auto 538,798 394,072 405,416 Non-Auto 147,793 120,450 123,968 Total Consumer 686,591 514,522 529,384 Total Loans 6,255,488 5,286,494 5,388,972 Less: Allowance for credit losses ( 74,108 ) ( 63,370 ) ( 63,465 ) Loans, net $ 6,181,380 $ 5,223,124 $ 5,325,507 * All disclosures for the C&I loan segment include PPP loan balances, net of deferred fees and costs, as disclosed on the face of the consolidated balance sheet. Outstanding loan balances at September 30, 2022 and 2021, and December 31, 2021, are net of unearned income, including net deferred loan fees. Our subsidiary bank has established a line of credit with the Federal Home Loan Bank of Dallas (“FHLB”) to provide liquidity and meet pledging requirements for those customers eligible to have securities pledged to secure certain uninsured deposits. At September 30, 2022, this available line of credit was $ 2,258,125,000 . At September 30, 2022, $ 3,901,376,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At September 30, 2022 , there was no balance outstanding under this line of credit. The Company’s nonaccrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (dollars in thousands): September 30, December 31, 2022 2021 2021 Nonaccrual loans $ 24,585 $ 25,210 $ 31,652 Loans still accruing and past due 90 days or more 15 23 8 Troubled debt restructured loans still accruing* 19 22 21 Total $ 24,619 $ 25,255 $ 31,681 * Troubled debt restructured loans of $ 1,951,000 , $ 4,732,000 and $ 6,721,000 , for which interest collection is doubtful are included in nonaccrual loans as of September 30, 2022 and 2021, and December 31, 2021 , respectively. The Company ha d $ 24,619,000 , $ 25,283,000 and $ 34,158,000 in nonaccrual, past due 90 days or more and still accruing, restructured loans, and foreclosed assets at September 30, 2022 and 2021, and December 31, 2021 , respectively. Nonaccrual loans at September 30, 2022 and 2021, and December 31, 2021, consisted of the following (dollars in thousands): September 30, December 31, 2022 2021 2021 Commercial: C&I $ 5,966 $ 3,430 $ 5,370 Municipal — — — Total Commercial 5,966 3,430 5,370 Agricultural 338 949 4,920 Real Estate: Construction & Development 1,696 1,455 708 Farm 91 965 1,173 Non-Owner Occupied CRE 2,406 2,776 2,671 Owner Occupied CRE 6,703 6,551 7,897 Residential 6,762 8,399 8,360 Total Real Estate 17,658 20,146 20,809 Consumer: Auto 596 589 514 Non-Auto 27 96 39 Total Consumer 623 685 553 Total $ 24,585 $ 25,210 $ 31,652 No significant additional funds are committed to be advanced in connection with nonaccrual loans as of September 30, 2022. Summary information on the allowance for credit losses for the three and nine-months ended September 30, 2022 and 2021, are outlined by portfolio segment in the following tables (dollars in thousands): Three-Months Ended September 30, 2022 C&I Municipal Agricultural Construction Farm Beginning balance $ 18,589 $ 1,352 $ 1,162 $ 21,085 $ 1,006 Provision for loan losses ( 2,378 ) ( 33 ) ( 187 ) 4,614 149 Recoveries 266 — 18 — — Charge-offs ( 38 ) — — — — Ending balance $ 16,439 $ 1,319 $ 993 $ 25,699 $ 1,155 Three-Months Ended September 30, 2022 (continued) Non-Owner Owner Residential Auto Non-Auto Total Beginning balance $ 8,410 $ 10,740 $ 8,304 $ 912 $ 372 $ 71,932 Provision for loan losses ( 498 ) ( 1,303 ) 557 72 67 1,060 Recoveries 283 649 93 47 53 1,409 Charge-offs — — — ( 119 ) ( 136 ) ( 293 ) Ending balance $ 8,195 $ 10,086 $ 8,954 $ 912 $ 356 $ 74,108 Nine-Months Ended September 30, 2022 C&I Municipal Agricultural Construction Farm Beginning balance $ 12,280 $ 348 $ 1,597 $ 17,627 $ 663 Provision for loan losses 3,598 971 ( 730 ) 8,172 492 Recoveries 824 — 135 — — Charge-offs ( 263 ) — ( 9 ) ( 100 ) — Ending balance $ 16,439 $ 1,319 $ 993 $ 25,699 $ 1,155 Nine-Months Ended September 30, 2022 (continued) Non-Owner Owner Residential Auto Non-Auto Total Beginning balance $ 10,722 $ 10,828 $ 8,133 $ 896 $ 371 $ 63,465 Provision for loan losses ( 3,352 ) ( 1,323 ) 860 116 106 8,910 Recoveries 825 669 110 215 182 2,960 Charge-offs — ( 88 ) ( 149 ) ( 315 ) ( 303 ) ( 1,227 ) Ending balance $ 8,195 $ 10,086 $ 8,954 $ 912 $ 356 $ 74,108 Three-Months Ended September 30, 2021 C&I Municipal Agricultural Construction Farm Beginning balance $ 10,186 $ 588 $ 1,312 $ 15,632 $ 607 Provision for loan losses ( 31 ) ( 273 ) 1,022 1,230 ( 21 ) Recoveries 1,140 — 5 — — Charge-offs ( 902 ) — ( 50 ) — — Ending balance $ 10,393 $ 315 $ 2,289 $ 16,862 $ 586 Three-Months Ended September 30, 2021 (continued) Non-Owner Owner Residential Auto Non- Total Beginning balance $ 10,432 $ 10,399 $ 11,234 $ 1,266 $ 482 $ 62,138 Provision for loan losses ( 344 ) ( 94 ) ( 1,184 ) ( 259 ) ( 46 ) — Recoveries 556 806 7 129 64 2,707 Charge-offs — ( 222 ) — ( 176 ) ( 125 ) ( 1,475 ) Ending balance $ 10,644 $ 10,889 $ 10,057 $ 960 $ 375 $ 63,370 Nine-Months Ended September 30, 2021 C&I Municipal Agricultural Construction Farm Beginning balance $ 13,609 $ 1,552 $ 1,255 $ 13,512 $ 1,876 Provision for loan losses ( 3,597 ) ( 1,237 ) 1,076 3,348 ( 1,300 ) Recoveries 1,671 — 29 2 10 Charge-offs ( 1,290 ) — ( 71 ) — — Ending balance $ 10,393 $ 315 $ 2,289 $ 16,862 $ 586 Nine-Months Ended September 30, 2021 (continued) Non-Owner Owner Residential Auto Non- Total Beginning balance $ 8,391 $ 12,347 $ 12,601 $ 1,020 $ 371 $ 66,534 Provision for loan losses 1,609 ( 2,044 ) ( 2,542 ) 139 80 ( 4,468 ) Recoveries 650 816 90 305 172 3,745 Charge-offs ( 6 ) ( 230 ) ( 92 ) ( 504 ) ( 248 ) ( 2,441 ) Ending balance $ 10,644 $ 10,889 $ 10,057 $ 960 $ 375 $ 63,370 Additionally, the Company records a reserve for unfunded commitments in other liabilities which totaled $ 10,879,000 , $ 6,751,000 and $ 6,436,000 at September 30, 2022 and 2021, and December 31, 2021, respectively. The provision for loan losses of $ 1,060,000 for the three-months ended September 30, 2022 is combined with the provision for unfunded commitments of $ 2,161,000 and reported in the aggregate of $ 3,221,000 under the provision for credit losses in the consolidated statement of earnings for the three-months ended September 30, 2022. The provision for loan losses of $ 8,910,000 for the nine-months ended September 30, 2022 above is combined with the provision for unfunded commitments of $ 4,443,000 and reported in the aggregate of $ 13,353,000 under the provision for credit losses in the consolidated statement of earnings for the nine-months ended September 30, 2022. There was no provision for loan losses or unfunded commitments for the three-months ended September 30, 2021. The $ 4,468,000 reversal of the provision for loan losses for the nine-months ended September 30, 2021 above is combined with the provision for unfunded commitments of $ 1,265,000 and reported in the net aggregate reversal of $ 3,203,000 under the provision for credit losses for the nine-months ended September 30, 2021. The Company’s loans that are ind ividually evaluated for credit losses (both collateral and non-collateral dependent) and their related allowances as of September 30, 2022 and 2021, and December 31, 2021, are summarized in the following tables by loan segment (dollars in thousands): September 30, 2022 Collateral Collateral Non-Collateral Total Loans Related Related Total Commercial: C&I $ 334 $ 5,632 $ 20,844 $ 26,810 $ 4,094 $ 4,345 $ 8,439 Municipal — — 71 71 — — — Total Commercial 334 5,632 20,915 26,881 4,094 4,345 8,439 Agricultural 116 222 412 750 103 247 350 Real Estate: Construction & Development 919 777 5,461 7,157 207 384 591 Farm — 91 1,616 1,707 2 39 41 Non-Owner Occupied CRE 2,230 176 32,959 35,365 12 2,317 2,329 Owner Occupied CRE 5,700 1,003 30,136 36,839 103 1,958 2,061 Residential 4,129 2,633 26,076 32,838 293 1,347 1,640 Total Real Estate 12,978 4,680 96,248 113,906 617 6,045 6,662 Consumer: Auto — 596 1,096 1,692 1 2 3 Non-Auto — 27 461 488 — 1 1 Total Consumer — 623 1,557 2,180 1 3 4 Total $ 13,428 $ 11,157 $ 119,132 $ 143,717 $ 4,815 $ 10,640 $ 15,455 September 30, 2021 Collateral Collateral Non-Collateral Total Loans Related Related Total Commercial: C&I $ 1,311 $ 2,119 $ 18,713 $ 22,143 $ 610 $ 3,296 $ 3,906 Municipal — — 121 121 — — — Total Commercial 1,311 2,119 18,834 22,264 610 3,296 3,906 Agricultural 328 621 6,944 7,893 184 1,965 2,149 Real Estate: Construction & Development 1,225 230 4,872 6,327 6 158 164 Farm 878 87 2,140 3,105 — 6 6 Non-Owner Occupied CRE 2,629 147 33,382 36,158 16 3,959 3,975 Owner Occupied CRE 5,886 665 42,781 49,332 99 3,382 3,481 Residential 3,634 4,765 30,090 38,489 641 2,022 2,663 Total Real Estate 14,252 5,894 113,265 133,411 762 9,527 10,289 Consumer: Auto — 589 1,181 1,770 2 2 4 Non-Auto — 96 337 433 — 2 2 Total Consumer — 685 1,518 2,203 2 4 6 Total $ 15,891 $ 9,319 $ 140,561 $ 165,771 $ 1,558 $ 14,792 $ 16,350 December 31, 2021 Collateral Collateral Non-Collateral Total Loans Related Related Total Commercial: C&I $ 749 $ 4,621 $ 19,021 $ 24,391 $ 2,533 $ 4,094 $ 6,627 Municipal — — 109 109 — — — Total Commercial 749 4,621 19,130 24,500 2,533 4,094 6,627 Agricultural 3,026 1,894 478 5,398 1,086 359 1,445 Real Estate: Construction & Development 102 606 4,765 5,473 90 135 225 Farm 997 176 1,969 3,142 — 2 2 Non-Owner Occupied CRE 2,543 128 31,797 34,468 15 4,044 4,059 Owner Occupied CRE 6,548 1,349 40,607 48,504 152 3,329 3,481 Residential 5,990 2,370 29,210 37,570 307 1,719 2,026 Total Real Estate 16,180 4,629 108,348 129,157 564 9,229 9,793 Consumer: Auto — 514 1,161 1,675 1 3 4 Non-Auto — 39 416 455 — 1 1 Total Consumer — 553 1,577 2,130 1 4 5 Total $ 19,955 $ 11,697 $ 129,533 $ 161,185 $ 4,184 $ 13,686 $ 17,870 The Company’s allowance for loans that are individually evaluated for credit losses and collectively evaluated for credit losses as of September 30, 2022 and 2021, and December 31, 2021, are summarized in the following table by loan segment (dollars in thousands). Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. September 30, 2022 C&I Municipal Agricultural Construction Farm Loans individually evaluated for credit losses $ 8,439 $ — $ 350 $ 591 $ 41 Loans collectively evaluated for credit losses 8,000 1,319 643 25,108 1,114 Total $ 16,439 $ 1,319 $ 993 $ 25,699 $ 1,155 September 30, 2022 (continued) Non-Owner Owner Residential Auto Non-Auto Total Loans individually evaluated for credit losses $ 2,329 $ 2,061 $ 1,640 $ 3 $ 1 $ 15,455 Loans collectively evaluated for credit losses 5,866 8,025 7,314 909 355 58,653 Total $ 8,195 $ 10,086 $ 8,954 $ 912 $ 356 $ 74,108 September 30, 2021 C&I Municipal Agricultural Construction Farm Loans individually evaluated for credit losses $ 3,906 $ — $ 2,149 $ 164 $ 6 Loans collectively evaluated for credit losses 6,487 315 140 16,698 580 Total $ 10,393 $ 315 $ 2,289 $ 16,862 $ 586 September 30, 2021 (continued) Non-Owner Owner Residential Auto Non-Auto Total Loans individually evaluated for credit losses $ 3,975 $ 3,481 $ 2,663 $ 4 $ 2 $ 16,350 Loans collectively evaluated for credit losses 6,669 7,408 7,394 956 373 47,020 Total $ 10,644 $ 10,889 $ 10,057 $ 960 $ 375 $ 63,370 December 31, 2021 C&I Municipal Agricultural Construction Farm Loans individually evaluated for credit losses $ 6,627 $ — $ 1,445 $ 225 $ 2 Loans collectively evaluated for credit losses 5,653 348 152 17,402 661 Total $ 12,280 $ 348 $ 1,597 $ 17,627 $ 663 December 31, 2021 (continued) Non-Owner Owner Residential Auto Non-Auto Total Loans individually evaluated for credit losses $ 4,059 $ 3,481 $ 2,026 $ 4 $ 1 $ 17,870 Loans collectively evaluated for credit losses 6,663 7,347 6,107 892 370 45,595 Total $ 10,722 $ 10,828 $ 8,133 $ 896 $ 371 $ 63,465 The Company’s recorded investment in loans as of September 30, 2022 and 2021, and December 31, 2021, related to the balance in the allowance for credit losses follows below (dollars in thousands): September 30, 2022 C&I Municipal Agricultural Construction Farm Loans individually evaluated for credit losses $ 26,810 $ 71 $ 750 $ 7,157 $ 1,707 Loans collectively evaluated for credit losses 844,525 214,781 76,187 930,894 266,432 Total $ 871,335 $ 214,852 $ 76,937 $ 938,051 $ 268,139 September 30, 2022 (continued) Non-Owner Owner Residential Auto Non-Auto Total Loans individually evaluated for credit losses $ 35,365 $ 36,839 $ 32,838 $ 1,692 $ 488 $ 143,717 Loans collectively evaluated for credit losses 682,373 908,826 1,503,342 537,106 147,305 6,111,771 Total $ 717,738 $ 945,665 $ 1,536,180 $ 538,798 $ 147,793 $ 6,255,488 September 30, 2021 C&I Municipal Agricultural Construction Farm Loans individually evaluated for credit losses $ 22,143 $ 121 $ 7,893 $ 6,327 $ 3,105 Loans collectively evaluated for credit losses 797,454 165,726 91,054 650,203 199,959 Total $ 819,597 $ 165,847 $ 98,947 $ 656,530 $ 203,064 September 30, 2021 (continued) Non-Owner Owner Residential Auto Non-Auto Total Loans individually evaluated for credit losses $ 36,158 $ 49,332 $ 38,489 $ 1,770 $ 433 $ 165,771 Loans collectively evaluated for credit losses 638,800 774,899 1,290,309 392,302 120,017 5,120,723 Total $ 674,958 $ 824,231 $ 1,328,798 $ 394,072 $ 120,450 $ 5,286,494 December 31, 2021 C&I Municipal Agricultural Construction Farm Loans individually evaluated for credit losses $ 24,391 $ 109 $ 5,398 $ 5,473 $ 3,142 Loans collectively evaluated for credit losses 812,684 177,796 92,691 744,320 214,078 Total $ 837,075 $ 177,905 $ 98,089 $ 749,793 $ 217,220 December 31, 2021 (continued) Non-Owner Owner Residential Auto Non-Auto Total Loans individually evaluated for credit losses $ 34,468 $ 48,504 $ 37,570 $ 1,675 $ 455 $ 161,185 Loans collectively evaluated for credit losses 588,966 773,149 1,296,849 403,741 123,513 5,227,787 Total $ 623,434 $ 821,653 $ 1,334,419 $ 405,416 $ 123,968 $ 5,388,972 From a credit risk standpoint, the Company rates its loans in one of five categories: (i) pass, (ii) special mention, (iii) substandard, (iv) doubtful or (v) loss (which are charged-off). The ratings of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on our credits as part of our ongoing monitoring of the credit quality of our loan portfolio. Ratings are adjusted to reflect the degree of risk and loss that are felt to be inherent in each credit as of each reporting period. Our methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on nonaccrual. The following summarizes the Company’s internal ratings of its loans held-for-investment, including the year of origination, by portfolio segments, at September 30, 2022 (dollars in millions): September 30, 2022 2021 2020 2019 2018 Prior Revolving Total C&I Risk rating: Pass $ 495 $ 226 $ 65 $ 24 $ 18 $ 16 $ — $ 844 Special mention 1 — — 1 — — — 2 Substandard 11 7 3 1 3 — — 25 Doubtful — — — — — — — — Total $ 507 $ 233 $ 68 $ 26 $ 21 $ 16 $ — $ 871 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Municipal Risk rating: Pass $ 67 $ 21 $ 16 $ 5 $ 20 $ 86 $ — $ 215 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 67 $ 21 $ 16 $ 5 $ 20 $ 86 $ — $ 215 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Agricultural Risk rating: Pass $ 46 $ 21 $ 4 $ 3 $ 1 $ 1 $ — $ 76 Special mention — — — — — — — — Substandard — 1 — — — — — 1 Doubtful — — — — — — — — Total $ 46 $ 22 $ 4 $ 3 $ 1 $ 1 $ — $ 77 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Construction & Development Risk rating: Pass $ 504 $ 317 $ 78 $ 15 $ 8 $ 9 $ — $ 931 Special mention — 2 — — — — — 2 Substandard 4 1 — — — — — 5 Doubtful — — — — — — — — Total $ 508 $ 320 $ 78 $ 15 $ 8 $ 9 $ — $ 938 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Farm Risk rating: Pass $ 101 $ 89 $ 33 $ 12 $ 8 $ 23 $ — $ 266 Special mention — — — — — — — — Substandard 1 — — — — 1 — 2 Doubtful — — — — — — — — Total $ 102 $ 89 $ 33 $ 12 $ 8 $ 24 $ — $ 268 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Non-Owner Occupied CRE Risk rating: Pass $ 223 $ 200 $ 108 $ 51 $ 22 $ 79 $ — $ 683 Special mention — 1 — 11 — 7 — 19 Substandard 5 1 1 2 1 6 — 16 Doubtful — — — — — — — — Total $ 228 $ 202 $ 109 $ 64 $ 23 $ 92 $ — $ 718 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Owner Occupied CRE Risk rating: Pass $ 280 $ 223 $ 134 $ 81 $ 67 $ 124 $ — $ 909 Special mention — 1 2 4 — 1 — 8 Substandard 1 2 1 3 11 11 — 29 Doubtful — — — — — — — Total $ 281 $ 226 $ 137 $ 88 $ 78 $ 136 $ — $ 946 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Residential Risk rating: Pass $ 433 $ 382 $ 183 $ 87 $ 68 $ 224 $ 126 $ 1,503 Special mention — 2 3 — — 3 — 8 Substandard 4 3 3 2 1 9 3 25 Doubtful — — — — — — — Total $ 437 $ 387 $ 189 $ 89 $ 69 $ 236 $ 129 $ 1,536 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Auto Risk rating: Pass $ 284 $ 149 $ 64 $ 29 $ 8 $ 3 $ — $ 537 Special mention — — — — — — — — Substandard — — 1 1 — — — 2 Doubtful — — — — — — — Total $ 284 $ 149 $ 65 $ 30 $ 8 $ 3 $ — $ 539 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Non-Auto Risk rating: Pass $ 73 $ 48 $ 13 $ 4 $ 2 $ 1 $ 7 $ 148 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 73 $ 48 $ 13 $ 4 $ 2 $ 1 $ 7 $ 148 September 30, 2022 2021 2020 2019 2018 Prior Revolving Total Total Loans Risk rating: Pass $ 2,506 $ 1,676 $ 698 $ 311 $ 222 $ 566 $ 133 $ 6,112 Special mention 1 6 5 16 — 11 — 39 Substandard 26 15 9 9 16 27 3 105 Doubtful — — — — — — — — Total $ 2,533 $ 1,697 $ 712 $ 336 $ 238 $ 604 $ 136 $ 6,256 The following summarizes the Company’s internal ratings of its loans held-for-investment, including the year of origination, by portfolio segments, at September 30, 2021 (dollars in millions): September 30, 2021 2020 2019 2018 2017 Prior Revolving Total C&I Risk rating: Pass $ 485 $ 185 $ 62 $ 35 $ 19 $ 12 $ — $ 798 Special mention 2 1 1 1 1 — — 6 Substandard 5 6 2 2 1 — — 16 Doubtful — — — — — — — — Total $ 492 $ 192 $ 65 $ 38 $ 21 $ 12 $ — $ 820 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Municipal Risk rating: Pass $ 22 $ 17 $ 6 $ 22 $ 17 $ 82 $ — $ 166 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 22 $ 17 $ 6 $ 22 $ 17 $ 82 $ — $ 166 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Agricultural Risk rating: Pass $ 51 $ 19 $ 11 $ 6 $ 3 $ 1 $ — $ 91 Special mention — 1 — — — — — 1 Substandard 6 1 — — — — — 7 Doubtful — — — — — — — — Total $ 57 $ 21 $ 11 $ 6 $ 3 $ 1 $ — $ 99 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Construction & Development Risk rating: Pass $ 383 $ 195 $ 37 $ 18 $ 8 $ 8 $ — $ 649 Special mention 3 — — — — — — 3 Substandard 2 1 1 — — — — 4 Doubtful — — — — — — — — Total $ 388 $ 196 $ 38 $ 18 $ 8 $ 8 $ — $ 656 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Farm Risk rating: Pass $ 94 $ 46 $ 16 $ 11 $ 8 $ 25 $ — $ 200 Special mention — — — — — — — — Substandard — 1 — 1 — 1 — 3 Doubtful — — — — — — — — Total $ 94 $ 47 $ 16 $ 12 $ 8 $ 26 $ — $ 203 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Non-Owner Occupied CRE Risk rating: Pass $ 158 $ 156 $ 98 $ 75 $ 35 $ 117 $ — $ 639 Special mention — 1 13 — 7 3 — 24 Substandard 1 — 3 1 3 4 — 12 Doubtful — — — — — — — — Total $ 159 $ 157 $ 114 $ 76 $ 45 $ 124 $ — $ 675 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Owner Occupied CRE Risk rating: Pass $ 193 $ 166 $ 125 $ 99 $ 59 $ 133 $ — $ 775 Special mention 3 — 1 — 1 1 — 6 Substandard 9 3 4 14 3 10 — 43 Doubtful — — — — — — — — Total $ 205 $ 169 $ 130 $ 113 $ 63 $ 144 $ — $ 824 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Residential Risk rating: Pass $ 374 $ 279 $ 126 $ 94 $ 76 $ 245 $ 96 $ 1,290 Special mention 4 4 — 1 1 3 — 13 Substandard 4 3 3 2 2 10 2 26 Doubtful — — — — — — — — Total $ 382 $ 286 $ 129 $ 97 $ 79 $ 258 $ 98 $ 1,329 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Auto Risk rating: Pass $ 174 $ 121 $ 64 $ 21 $ 9 $ 3 $ — $ 392 Special mention — — — — — — — — Substandard — 1 1 — — — — 2 Doubtful — — — — — — — — Total $ 174 $ 122 $ 65 $ 21 $ 9 $ 3 $ — $ 394 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Non-Auto Risk rating: Pass $ 65 $ 27 $ 11 $ 4 $ 2 $ 5 $ 6 $ 120 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 65 $ 27 $ 11 $ 4 $ 2 $ 5 $ 6 $ 120 September 30, 2021 2020 2019 2018 2017 Prior Revolving Total Total Loans Risk rating: Pass $ 1,999 $ 1,211 $ 556 $ 385 $ 236 $ 631 $ 102 $ 5,120 Special mention 12 7 15 2 10 7 — 53 Substandard 27 16 14 20 9 25 2 113 Doubtful — — — — — — — — Total $ 2,038 $ 1,234 $ 585 $ 407 $ 255 $ 663 $ 104 $ 5,286 The following summarizes the Company’s internal ratings of its loans held-for-investment, including the year of origination, by portfolio segments, at December 31, 2021 (dollars in millions): December 31, 2021 2020 2019 2018 2017 Prior Revolving Total C&I Risk rating: Pass $ 526 $ 178 $ 52 $ 29 $ 17 $ 11 $ — $ 813 Special mention 4 1 4 — — — — 9 Substandard 7 4 1 3 — — — 15 Doubtful — — — — — — — — Total $ 537 $ 183 $ 57 $ 32 $ 17 $ 11 $ — $ 837 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Municipal Risk rating: Pass $ 39 $ 15 $ 6 $ 22 $ 17 $ 79 $ — $ 178 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 39 $ 15 $ 6 $ 22 $ 17 $ 79 $ — $ 178 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Agricultural Risk rating: Pass $ 69 $ 8 $ 6 $ 6 $ 3 $ 1 $ — $ 93 Special mention — — — — — — — — Substandard 4 1 — — — — — 5 Doubtful — — — — — — — — Total $ 73 $ 9 $ 6 $ 6 $ 3 $ 1 $ — $ 98 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Construction & Development Risk rating: Pass $ 557 $ 134 $ 24 $ 14 $ 7 $ 8 $ — $ 744 Special mention 2 — — — — — — 2 Substandard 2 2 — — — — — 4 Doubtful — — — — — — — — Total $ 561 $ 136 $ 24 $ 14 $ 7 $ 8 $ — $ 750 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Farm Risk rating: Pass $ 117 $ 42 $ 15 $ 10 $ 7 $ 23 $ — $ 214 Special mention — — — — — — — — Substandard 1 1 — 1 — — — 3 Doubtful — — — — — — — — Total $ 118 $ 43 $ 15 $ 11 $ 7 $ 23 $ — $ 217 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Non-Owner Occupied CRE Risk rating: Pass $ 214 $ 128 $ 77 $ 56 $ 31 $ 84 $ — $ 590 Special mention — 1 12 — 7 3 — 23 Substandard — 1 3 1 3 3 — 11 Doubtful — — — — — — — — Total $ 214 $ 130 $ 92 $ 57 $ 41 $ 90 $ — $ 624 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Owner Occupied CRE Risk rating: Pass $ 250 $ 143 $ 114 $ 90 $ 59 $ 117 $ — $ 773 Special mention 2 2 1 — 1 1 — 7 Substandard 8 2 3 13 5 11 — 42 Doubtful — — — — — — — — Total $ 260 $ 147 $ 118 $ 103 $ 65 $ 129 $ — $ 822 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Residential Risk rating: Pass $ 477 $ 230 $ 115 $ 84 $ 68 $ 222 $ 100 $ 1,296 Special mention 3 4 — 1 1 3 1 13 Substandard 3 3 3 2 2 10 2 25 Doubtful — — — — — — — — Total $ 483 $ 237 $ 118 $ 87 $ 71 $ 235 $ 103 $ 1,334 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Auto Risk rating: Pass $ 218 $ 105 $ 54 $ 17 $ 7 $ 2 $ — $ 403 Special mention 1 — — — — — — 1 Substandard — — 1 — — — — 1 Doubtful — — — — — — — — Total $ 219 $ 105 $ 55 $ 17 $ 7 $ 2 $ — $ 405 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Non-Auto Risk rating: Pass $ 81 $ 22 $ 8 $ 4 $ 1 $ 1 $ 7 $ 124 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 81 $ 22 $ 8 $ 4 $ 1 $ 1 $ 7 $ 124 December 31, 2021 2020 2019 2018 2017 Prior Revolving Total Total Loans Risk rating: Pass $ 2,548 $ 1,005 $ 471 $ 332 $ 217 $ 548 $ 107 $ 5,228 Special mention 12 8 17 1 9 7 1 55 Substandard 25 14 11 20 10 24 2 106 Doubtful — — — — — — — — Total $ 2,585 $ 1,027 $ 499 $ 353 $ 236 $ 579 $ 110 $ 5,389 At September 30, 2022 and 2021, and December 31, 2021, the Company’s past due loans are as follows (dollars in thousands): September 30, 2022 15-59 60-89 Greater Total Past Current Total Loans 90 Days Commercial: C&I $ 5,422 $ 73 $ 1,515 $ 7,010 $ 864,325 $ 871,335 $ — Municipal — — — — 214,852 214,852 — Total Commercial 5,422 73 1,515 7,010 1,079,177 1,086,187 — Agricultural 290 93 — 383 76,554 76,937 — Real Estate: Construction & Development 2,958 600 — 3,558 934,493 938,051 — Farm 822 150 — 972 267,167 268,139 — Non-Owner Occupied CRE 536 — — 536 717,202 717,738 — Owner Occupied CRE 1,138 37 — 1,175 944,490 945,665 — Residential 4,834 252 15 5,101 1,531,079 1,536,180 15 Total Real Estate 10,288 1,039 15 11,342 4,394,431 4,405,773 15 Consumer: Auto 267 76 33 376 538,422 538,798 — Non-Auto 66 10 — 76 147,717 147,793 — Total Consumer 333 86 33 452 686,139 686,591 — Total $ 16,333 $ 1,291 $ 1,563 $ 19,187 $ 6,236,301 $ 6,255,488 $ 15 September 30, 2021 15-59 60-89 Greater Total Past Current Total Loans 90 Days Commercial: C&I $ 4,136 $ 516 $ 666 $ 5,318 $ 814,279 $ 819,597 $ 23 Municipal — — — — 165,847 165,847 — Total Commercial 4,136 516 666 5,318 980,126 985,444 23 Agricultural 115 1,074 100 1,289 97,658 98,947 — Real Estate: Construction & Development 4,676 — 114 4,790 651,740 656,530 — Farm 1,182 13 — 1,195 201,869 203,064 — Non-Owner Occupied CRE 800 — — 800 674,158 674,958 — Owner Occupied CRE 260 315 1,537 2,112 822,119 824,231 — Residential 7,807 475 415 8,697 1,320,101 1,328,798 — Total Real Estate 14,725 803 2,066 17,594 3,669,987 3,687,581 — Consumer: Auto 323 43 7 373 393,699 394,072 — Non-Auto 59 3 — 62 120,388 120,450 — Total Consumer 382 46 7 435 514,087 514,522 — Total $ 19,358 $ 2,439 $ 2,839 $ 24,636 $ 5,261,858 $ 5,286,494 $ 23 December 31, 2021 15-59 60-89 Greater Total Past Current Total Loans 90 Days Commercial: C&I $ 3,638 $ 34 $ 222 $ 3,894 $ 833,181 $ 837,075 $ 5 Municipal 63 — — 63 177,842 177,905 — Total Commercial 3,701 34 222 3,957 1,011,023 1,014,980 5 Agricultural 181 — — 181 97,908 98,089 — Real Estate: Construction & Development 2,953 39 — 2,992 746,801 749,793 — Farm 600 215 — 815 216,405 217,220 — Non-Owner Occupied CRE 235 — — 235 623,199 623,434 — Owner Occupied CRE 813 — 280 1,093 820,560 821,653 — Residential 4,984 327 410 5,721 1,328,698 1,334,419 — Total Real Estate 9,585 581 690 10,856 3,735,663 3,746,519 — Consumer: Auto 393 26 — 419 404,997 405,416 — Non-Auto 145 24 3 172 123,796 123,968 3 Total Consumer 538 50 3 591 528,793 529,384 3 Total $ 14,005 $ 665 $ 915 $ 15,585 $ 5,373,387 $ 5,388,972 $ 8 * The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due. The restructuring of a loan is considered a “troubled debt restructuring” if both the borrower is experiencing financial difficulties and the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules, reductions in collateral and other actions intended to minimize potential losses. The Company's loans that were modified and considered troubled debt restructurings are as follows (dollars in thousands): Three-Months Ended September 30, 2022 Nine-Months Ended September 30, 2022 Pre- Post- Pre- Post- Recorded Recorded Recorded Recorded Number Investment Investment Number Investment Investment Commercial: C&I 1 $ 205 $ 205 1 $ 205 $ 205 Municipal — — — — — — Total Commercial 1 205 205 1 205 205 Agricultural — — — — — — Real Estate: Construction & Development — — — — — — Farm — — — — — — Non-Owner Occupied CRE — — — — — — Owner Occupied CRE — — — — — — Residential 1 130 130 1 130 130 Total Real Estate 1 130 130 1 130 130 Consumer: Auto — — — Non-Auto — — — Total Consumer — — — — — — Total 2 $ 335 $ 335 2 $ 335 $ 335 Three-Months Ended September 30, 2021 Nine-Months Ended September 30, 2021 Pre- Post- Pre- Post- Recorded Recorded Recorded Recorded Number Investment Investment Number Investment Investment Commercial: C&I — $ — $ — 4 $ 361 $ 361 Municipal — — — — — — Total Commercial — — — 4 361 361 Agricultural — — — 1 68 68 Real Estate: Construction & Development — — — 1 200 200 Farm — — — — — — Non-Owner Occupied CRE — — — — — — Owner Occupied CRE — — — 3 1,047 1,047 Residential 2 77 77 5 519 519 Total Real Estate 2 77 77 9 1,766 1,766 Consumer: Auto 1 19 19 2 51 51 Non-Auto 1 9 9 1 9 9 Total Consumer 2 28 28 3 60 60 Total 4 $ 105 $ 105 17 $ 2,255 $ 2,255 The balances below provide information as to how the loans were modified as troubled debt restructured loans (dollars in thousands): Three-Months Ended September 30, 2022 Nine-Months Ended September 30, 2022 Adjusted Combined Adjusted Combined Interest Maturity Rate and Interest Maturity Rate and Rate Extended Maturity Rate Extended Maturity Commercial: C&I $ — $ — $ 205 $ — $ — $ 205 Municipal — — — — — — Total Commercial — — 205 — — 205 Agricultural — — — — — — Real Estate: Construction & Development — — — — — — Farm — — — — — — Non-Owner Occupied CRE — — — — — — Owner Occupied CRE — — — — — — Residential — — 130 — — 130 Total Real Estate — — 130 — — 130 Consumer: Auto — — — — — — Non-Auto — — — — — — Total Consumer — — — — — — Total $ — $ — $ 335 $ — $ — $ 335 Three-Months Ended September 30, 2021 Nine-Months Ended September 30, 2021 Adjusted Combined Adjusted Combined Interest Maturity Rate and Interest Maturity Rate and Rate Extended Maturity Rate Extended Maturity Commercial: C&I $ — $ — $ — $ — $ 212 $ 149 Municipal — — — — — — Total Commercial — — — — 212 149 Agricultural — — — — 68 — Real Estate: Construction & Development — — — — 200 — Farm — — — — — — Non-Owner Occupied CRE — — — — — — Owner Occupied CRE — — — — — 1,047 Residential — 18 59 — 263 256 Total Real Estate — 18 59 — 463 1,303 Consumer: Auto — — 19 — — 51 Non-Auto — — 9 — — 9 Total Consumer — — 28 — — 60 Total $ — $ 18 $ 87 $ — $ 743 $ 1,512 During the three and nine-months ended September 30, 2022 , no loans were modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default and still outstanding, respectively. During the three and nine-months ended September 30, 2021 , one loan was modified as a troubled debt restructured l |