Loans and Allowance for Credit Losses | 90
30-59 days 60-89 days or More Total Total Loans days and
Past Due Past Due Past Due Past Due Current Receivable Accruing
December 31, 2022
Construction and land development $ 20 $ 14 $ 449 $ 483 $ 143,781 $ 144,264 $ —
Agricultural real estate 20 6 1 27 410,300 410,327 —
1-4 family residential properties 1,706 1,092 896 3,694 436,486 440,180 —
Multifamily residential properties — — 548 548 293,798 294,346 —
Commercial real estate 494 205 3,654 4,353 2,025,658 2,030,011 —
Loans secured by real estate 2,240 1,317 5,548 9,105 3,310,023 3,319,128 —
Agricultural loans — 53 29 82 166,756 166,838 —
Commercial and industrial loans 716 24 854 1,594 1,081,366 1,082,960 —
Consumer loans 326 195 278 799 96,976 97,775 —
All other loans — — — — 159,511 159,511 —
Total loans $ 3,282 $ 1,589 $ 6,709 $ 11,580 $ 4,814,632 $ 4,826,212 $ —
December 31, 2021
Construction and land development $ 159 $ 199 $ 203 $ 561 $ 144,557 $ 145,118 $ —
Agricultural real estate — 222 1 223 279,049 279,272 —
1-4 family residential properties 2,532 914 2,012 5,458 394,855 400,313 —
Multifamily residential properties — — 1,676 1,676 297,266 298,942 —
Commercial real estate 8,930 640 2,484 12,054 1,654,144 1,666,198 —
Loans secured by real estate 11,621 1,975 6,376 19,972 2,769,871 2,789,843 —
Agricultural loans — 10 588 598 150,886 151,484 —
Commercial and industrial loans 381 302 1,156 1,839 830,169 832,008 —
Consumer loans 388 47 118 553 77,889 78,442 —
All other loans 1,854 — — 1,854 141,892 143,746 —
Total loans $ 14,244 $ 2,334 $ 8,238 $ 24,816 $ 3,970,707 $ 3,995,523 $ — Individually Evaluated Loans Within all loan portfolio segments, loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Impaired loans, excluding certain troubled debt restructured loans, are placed on nonaccrual status. Impaired loans include nonaccrual loans and loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status until, in the opinion of management, the financial position of the borrower indicates there " id="sjs-B4" xml:space="preserve">Note 5 -- Loans and Allowance for Credit Losses Loans are stated at the principal amount outstanding net of unearned discounts, unearned income, and allowance for credit losses. Unearned income includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at December 31, 2022 and 2021 follows (in thousands): 2022 2021 Construction and land development $ 144,387 $ 145,156 Agricultural real estate 410,790 279,001 1-4 family residential properties 440,018 399,932 Multifamily residential properties 295,073 298,974 Commercial real estate 2,036,243 1,666,764 Loans secured by real estate 3,326,511 2,789,827 Agricultural loans 166,695 151,344 Commercial and industrial loans 1,085,004 834,061 Consumer loans 97,730 78,538 All other loans 159,499 143,738 Gross loans 4,835,439 3,997,508 Less: Loans held for sale 338 2,748 4,835,101 3,994,760 Less: Net deferred loan fees, premiums and discounts 9,227 1,985 Allowance for credit losses 59,093 54,655 Net loans $ 4,766,781 $ 3,938,120 Net loans increased $ 828.7 million as of December 31, 2022 compared to December 31, 2021 . Of this increase, approximately $ 426.4 million were loans acquired from Jefferson Bank. Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at the lower of aggregate cost or fair value, taking into consideration future commitments to sell the loans. These loans are primarily for 1-4 family residential properties. Accrued interest on loans, which is excluded from the amortized cost of the balances above, totaled $ 23.0 million and $ 14.7 million at December 31, 2022 and 2021, respectively. The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the board of directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation; however, limits well below the regulatory thresholds are generally observed. The vast majority of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments. The Company’s lending can be summarized into the following primary areas: Commercial Real Estate Loans. Commercial real estate loans are generally comprised of loans to small business entities to purchase or expand structures in which the business operations are housed, loans to owners of real estate who lease space to non-related commercial entities, loans for construction and land development, loans to hotel operators, and loans to owners of multi-family residential structures, such as apartment buildings. Commercial real estate loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. For the various types of commercial real estate loans, minimum criteria have been established within the Company’s loan policy regarding debt service coverage while maximum limits on loan-to-value and amortization periods have been defined. Maximum loan- to-value ratios range from 65 % to 80 % depending upon the type of real estate collateral, while the desired minimum debt coverage ratio is 1.20x . Amortization periods for commercial real estate loans are generally limited to twenty years . The Company’s commercial real estate portfolio is well below the thresholds that would designate a concentration in commercial real estate lending, as established by the federal banking regulators. Commercial and Industrial Loans. Commercial and industrial loans are primarily comprised of working capital loans used to purchase inventory and fund accounts receivable that are secured by business assets other than real estate. These loans are generally written for one year or less. Also, equipment financing is provided to businesses with these loans generally limited to 80 % of the value of the collateral and amortization periods limited to seven years . Commercial loans are often accompanied by a personal guaranty of the principal owners of a business. Like commercial real estate loans, the underlying cash flow of the business is the primary consideration in the underwriting process. The financial condition of commercial borrowers is monitored at least annually with the type of financial information required determined by the size of the relationship. Measures employed by the Company for businesses with higher risk profiles include the use of government-assisted lending programs through the Small Business Administration and U.S. Department of Agriculture. Agricultural and Agricultural Real Estate Loans. Agricultural loans are generally comprised of seasonal operating lines to cash grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop. Loan-to-value ratios on loans secured by farmland generally do not exceed 65 % and have amortization periods limited to twenty-five years . Federal government-assistance lending programs through the Farm Service Agency are used to mitigate the level of credit risk when deemed appropriate. Residential Real Estate Loans. Residential real estate loans generally include loans for the purchase or refinance of residential real estate properties consisting of one-to-four units and home equity loans and lines of credit. The Company sells the vast majority of its long-term fixed rate residential real estate loans to secondary market investors. The Company also releases the servicing of these loans upon sale. The Company retains all residential real estate loans with balloon payment features. Balloon periods are limited to five years . Residential real estate loans are typically underwritten to conform to industry standards including criteria for maximum debt-to-income and loan-to-value ratios as well as minimum credit scores. Loans secured by first liens on residential real estate held in the portfolio typically do not exceed 80 % of the value of the collateral and have amortization periods of twenty-five years or less. The Company does not originate subprime mortgage loans. Consumer Loans. Consumer loans are primarily comprised of loans to individuals for personal and household purposes such as the purchase of an automobile or other living expenses. Minimum underwriting criteria have been established that consider credit score, debt-to-income ratio, employment history, and collateral coverage. Typically, consumer loans are set up on monthly payments with amortization periods based on the type and age of the collateral. Other Loans. Other loans consist primarily of loans to municipalities to support community projects such as infrastructure improvements or equipment purchases. Underwriting guidelines for these loans are consistent with those established for commercial loans with the additional repayment source of the taxing authority of the municipality. Allowance for Credit Losses The allowance for credit losses represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and troubled debt restructurings, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating large, impaired loans separately from non-impaired loans. Individually Evaluated loans The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified via the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. For loans greater than $ 250,000 , impairment is individually measured each quarter using one of three alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs. Non-Individually evaluated loans Non-individually evaluated loans comprise the vast majority of the Company’s total loan portfolio and include loans in accrual status and those credits not identified as troubled debt restructurings. A small portion of these loans are considered “criticized” due to the risk rating assigned reflecting elevated credit risk due to characteristics, such as a strained cash flow position, associated with the individual borrowers. Criticized loans are those assigned risk ratings of Special Mention, Substandard, or Doubtful. Beginning January 1, 2020, the allowance for credit losses was estimated using the current expected credit loss model ("CECL"). The Company uses the Loss Rate method to estimate the historical loss rate for all non-individually evaluated loans. Under this method, the allowance for credit losses is measured on a collective (pool) basis for loans with similar risk characteristics. Historical credit loss experience provides the basis for the estimate of expected credit losses. For each pool, a historical loss rate is computed based on the average remaining contractual life of the pool. Adjustments to historical loss rates are made using qualitative factors relevant to each pool including merger & acquisition activity, economic conditions, changes in policies, procedures & underwriting, and concentrations. In addition, a twelve-month forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period. The Company also considers specific current economic events occurring globally, in the U.S. and in its local markets. In March 2020, in response to the COVID-19 outbreak, its significant disruptions in the U.S. economy and impacts on local markets, First Mid Bank offered a 90-day commercial deferral program, primarily to hotel and restaurant borrowers. In accordance with interagency guidance issued in March 2020, these short-term deferrals are not considered troubled debt restructurings. These deferrals were, however, considered in the factors used to estimate the required allowance for credit losses for non-impaired loans. Other COVID-19 related impacts considered included revenue losses of businesses required to restrict or cease services, income loss to workers laid off as a result of COVID-19 restrictions, various federal and state government stimulus programs and additional deferral programs offered by First Mid Bank beginning in April 2020. Other events considered include the status of trade agreements with China, scheduled increases in minimum wage and changes to the minimum salary threshold for overtime provisions, current and projected unemployment rates, current and projected grain and oil prices and economies of local markets where customers work and operate. Within each pool, risk elements are evaluated that have specific impacts to the borrowers within the pool. These, along with the general risks and events, and the specific lending policies and procedures by loan type described above, are analyzed to estimate the qualitative factors used to adjust the historical loss rates. During the current period, the following assumptions and factors were considered when determining the historical loss rate and any potential adjustments by loan pool. During 2022, the following assumptions and factors were considered when determining the historical loss rate and any potential adjustments by loan pool. Construction and Land Development Loans. Historical losses and adversely classifieds in this segment remained very low. Past dues also remained low and stable compared to last year. Given the increasing uncertainty regarding the potential for a recession, the qualitative factor for this segment was increased slightly. Agricultural Real Estate Loans. Historical losses in the segment remain very low. Adversely classified balances and past dues improved in 2022. Farmland values have remained steady over an extended period of time and there are no indications that this will change in the next year. There was a slight decrease to the qualitative factor for this segment. 1- 4 Family Residential Properties Loans. This loan segment has remained stable throughout the last several years even with the uncertainty created from COVID 19 and the subsequent governmental actions to provide support. Both adversely classifieds and past dues improved during the year. The qualitative factors on both non-owner occupied and owner-occupied loans for this segment have not changed. Commercial Real Estate Loans. This is the largest segment of loans in the portfolio and carries the largest balance of allowance for credit losses. For 2022, adversely classified balances and past dues improved. However, the economic uncertainty increased and drove the qualitative factors on both non-owner occupied and owner-occupied loans to be increased slightly. Agricultural Loans. Losses in this segment are very low. Adversely classified balances and past dues decreased. Commodity prices have been elevated and yields have been strong. The qualitative factor of this segment was decreased slightly. Commercial and Industrial Loans. This segment carries the second largest balance of allowance for credit losses for the Company. During the year, adversely classified balances increased, while past dues decreased. Due to the increase in the adversely classifieds and the increased economic uncertainty, the qualitative factor for this segment was increased slightly. Consumer Loans. This segment represents the smallest portion of the Company's loan portfolio. During the year, adversely classified loans decreased, while past dues increased. Due to the increase in past due and the increased economic uncertainty, the qualitative factor for this segment was increased slightly. Acquired Loans. Prior to January 1, 2020 loans acquired with evidence of credit deterioration since origination and for which it was probable that all contractually required payments would not be collected were considered purchased credit impaired at the time of acquisition. Purchase credit-impaired ("PCI") loans were accounted for under ASC 310-30, Receivables--Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"), and were initially measured at fair value, which included the estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans was not carried over and recorded at the acquisition date. The cash flows expected to be collected were estimated using current key assumptions, such as default rates, value of underlying collateral, severity and prepayment speeds. Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. All loans considered to be PCI prior to January 1, 2020 were converted to PCD on that date. Accordingly, on January 1, 2020, the amortized cost basis of the PCD loans were adjusted to reflect the addition of $ 833,000 to the allowance for credit losses. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. The following tables present the balance in the allowance for credit losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2022, 2021, and 2020 (in thousands): Construction Agricultural 1-4 Family Commercial Agricultural Commercial Consumer Total Twelve months ended December 31, 2022 Beginning Balance $ 1,743 $ 1,257 $ 2,330 $ 26,246 $ 983 $ 19,241 $ 2,855 $ 54,655 Initial allowance on loans purchased with credit deterioration 272 — 3 478 — 94 16 863 Provision for credit loss expense 137 176 1,241 1,462 ( 359 ) 2,135 14 4,806 Loans charged off 2 — 191 414 93 870 1,380 2,950 Recoveries collected 100 — 359 385 54 208 613 1,719 Ending balance $ 2,250 $ 1,433 $ 3,742 $ 28,157 $ 585 $ 20,808 $ 2,118 $ 59,093 Twelve months ended December 31, 2021 Beginning Balance $ 1,666 $ 1,084 $ 2,322 $ 19,660 $ 1,526 $ 13,485 $ 2,167 $ 41,910 Initial allowance on loans purchased with credit deterioration 261 44 328 646 — 795 — 2,074 Provision for credit loss expense 21 129 ( 160 ) 6,415 ( 544 ) 7,940 1,350 15,151 Loans charged off 205 — 371 535 — 3,118 1,405 5,634 Recoveries collected — — 211 60 1 139 743 1,154 Ending balance $ 1,743 $ 1,257 $ 2,330 $ 26,246 $ 983 $ 19,241 $ 2,855 $ 54,655 Twelve months ended December 31, 2020 Beginning Balance (prior to adoption of ASC 326) $ 1,146 $ 1,093 $ 1,386 $ 11,198 $ 1,386 $ 9,273 $ 1,429 $ 26,911 Impact of adopting ASC 326 ( 113 ) 230 756 541 ( 363 ) 155 466 1,672 Provision for credit loss expense 646 ( 239 ) 274 8,581 503 5,869 469 16,103 Loans charged off 13 — 393 829 — 1,991 618 3,844 Recoveries collected — — 299 169 — 179 421 1,068 Ending balance $ 1,666 $ 1,084 $ 2,322 $ 19,660 $ 1,526 $ 13,485 $ 2,167 $ 41,910 Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to time frames established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of December 31, 2022 (in thousands): Collateral Allowance Real Estate Business Other Total for Credit Construction and land development $ 449 $ — $ — $ 449 $ 221 Agricultural real estate — — 16 16 — 1-4 family residential properties 1,085 144 — 1,229 58 Multifamily residential properties 660 — — 660 — Commercial real estate 8,442 647 — 9,089 459 Loans secured by real estate 10,636 791 16 11,443 738 Agricultural loans — — — — — Commercial and industrial loans 196 349 — 545 — Consumer loans — — 1 1 — All other loans — — — — — Total loans $ 10,832 $ 1,140 $ 17 $ 11,989 $ 738 Credit Quality The Company categorizes 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, collateral support, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Company uses the following definitions for risk ratings, which are commensurate with a loan considered "criticized": Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current sound-worthiness 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 institution 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 existing factors, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of December 31, 2022 (in thousands): Term Loans by Origination Year Revolving Risk rating 2022 2021 2020 2019 2018 Prior Loans Total December 31, 2022 Construction and land development loans Pass $ 63,846 $ 39,790 $ 12,558 $ 15,787 $ 1,210 $ 10,601 $ — $ 143,792 Special mention — — — — — — — — Substandard — — — 14 — 458 — 472 Total $ 63,846 $ 39,790 $ 12,558 $ 15,801 $ 1,210 $ 11,059 $ — $ 144,264 Agricultural real estate loans Pass $ 171,833 $ 67,115 $ 58,283 $ 23,820 $ 27,573 $ 52,799 $ — $ 401,423 Special mention 1,123 — 490 1,240 273 3,121 — 6,247 Substandard — — — — 1,383 1,274 — 2,657 Total $ 172,956 $ 67,115 $ 58,773 $ 25,060 $ 29,229 $ 57,194 $ — $ 410,327 1-4 family residential property loans Pass $ 94,377 $ 86,717 $ 78,977 $ 27,580 $ 30,809 $ 63,050 $ 43,722 $ 425,232 Special mention 169 218 1 44 238 1,000 — 1,670 Substandard 1,060 566 529 295 2,749 8,079 — 13,278 Total $ 95,606 $ 87,501 $ 79,507 $ 27,919 $ 33,796 $ 72,129 $ 43,722 $ 440,180 Commercial real estate loans Pass $ 558,921 $ 509,614 $ 319,049 $ 239,564 $ 211,505 $ 453,076 $ — $ 2,291,729 Special mention 2,187 1,287 769 1,508 952 8,503 — 15,206 Substandard 3,783 478 794 873 5,394 6,100 — 17,422 Total $ 564,891 $ 511,379 $ 320,612 $ 241,945 $ 217,851 $ 467,679 $ — $ 2,324,357 Agricultural loans Pass $ 137,327 $ 18,783 $ 3,433 $ 3,918 $ 915 $ 254 $ — $ 164,630 Special mention 1,178 — — 756 66 109 — 2,109 Substandard 53 — — 46 — — — 99 Total $ 138,558 $ 18,783 $ 3,433 $ 4,720 $ 981 $ 363 $ — $ 166,838 Commercial and industrial loans Pass $ 450,001 $ 226,038 $ 172,208 $ 63,906 $ 61,929 $ 247,404 $ — $ 1,221,486 Special mention 469 640 10,095 570 7,280 158 — 19,212 Substandard 346 418 184 35 157 633 — 1,773 Total $ 450,816 $ 227,096 $ 182,487 $ 64,511 $ 69,366 $ 248,195 $ — $ 1,242,471 Consumer loans Pass $ 48,600 $ 21,088 $ 12,101 $ 7,968 $ 1,945 $ 5,630 $ — $ 97,332 Special mention — 18 1 — 5 — — 24 Substandard 69 246 3 43 52 6 — 419 Total $ 48,669 $ 21,352 $ 12,105 $ 8,011 $ 2,002 $ 5,636 $ — $ 97,775 Total loans Pass $ 1,524,905 $ 969,145 $ 656,609 $ 382,543 $ 335,886 $ 832,814 $ 43,722 $ 4,745,624 Special mention 5,126 2,163 11,356 4,118 8,814 12,891 — 44,468 Substandard 5,311 1,708 1,510 1,306 9,735 16,550 — 36,120 Total $ 1,535,342 $ 973,016 $ 669,475 $ 387,967 $ 354,435 $ 862,255 $ 43,722 $ 4,826,212 Term Loans by Origination Year Revolving Risk rating 2021 2020 2019 2018 2017 Prior Loans Total December 31, 2021 Construction and land development loans Pass $ 38,656 $ 34,774 $ 23,505 $ 34,358 $ 3,760 $ 9,433 $ — $ 144,486 Special mention 110 — — — — — — 110 Substandard — — — 483 — 39 — 522 Total $ 38,766 $ 34,774 $ 23,505 $ 34,841 $ 3,760 $ 9,472 $ — $ 145,118 Agricultural real estate loans Pass $ 78,793 $ 64,159 $ 25,713 $ 30,203 $ 12,142 $ 54,808 $ — $ 265,818 Special mention 872 259 4,028 384 69 6,087 — 11,699 Substandard — — 392 187 57 1,119 — 1,755 Total $ 79,665 $ 64,418 $ 30,133 $ 30,774 $ 12,268 $ 62,014 $ — $ 279,272 1-4 family residential property loans Pass $ 78,889 $ 94,404 $ 35,554 $ 44,248 $ 30,735 $ 52,131 $ 42,800 $ 378,761 Special mention 234 — 1,934 499 2,601 1,196 41 6,505 Substandard 355 496 1,534 1,302 3,458 7,250 652 15,047 Total $ 79,478 $ 94,900 $ 39,022 $ 46,049 $ 36,794 $ 60,577 $ 43,493 $ 400,313 Commercial real estate loans Pass $ 568,200 $ 417,334 $ 299,973 $ 174,448 $ 150,811 $ 304,585 $ — $ 1,915,351 Special mention 3,185 1,206 1,836 1,295 10,609 8,632 — 26,763 Substandard 2,007 714 6,242 1,179 4,646 8,238 — 23,026 Total $ 573,392 $ 419,254 $ 308,051 $ 176,922 $ 166,066 $ 321,455 $ — $ 1,965,140 Agricultural loans Pass $ 105,378 $ 17,903 $ 5,612 $ 2,822 $ 924 $ 1,316 $ — $ 133,955 Special mention 13,725 436 2,648 150 13 64 — 17,036 Substandard 350 18 — — — 125 — 493 Total $ 119,453 $ 18,357 $ 8,260 $ 2,972 $ 937 $ 1,505 $ — $ 151,484 Commercial and industrial loans Pass $ 279,814 $ 167,662 $ 119,702 $ 76,022 $ 22,888 $ 302,962 $ — $ 969,050 Special mention 613 399 1,463 182 477 819 — 3,953 Substandard 506 34 133 621 24 1,433 — 2,751 Total $ 280,933 $ 168,095 $ 121,298 $ 76,825 $ 23,389 $ 305,214 $ — $ 975,754 Consumer loans Pass $ 27,948 $ 19,033 $ 16,978 $ 5,505 $ 4,297 $ 1,244 $ — $ 75,005 Special mention 68 54 38 9 — — — 169 Substandard 585 58 308 678 43 1,596 — 3,268 Total $ 28,601 $ 19,145 $ 17,324 $ 6,192 $ 4,340 $ 2,840 $ — $ 78,442 Total loans Pass $ 1,177,678 $ 815,269 $ 527,037 $ 367,606 $ 225,557 $ 726,479 $ 42,800 $ 3,882,426 Special mention 18,807 2,354 11,947 2,519 13,769 16,798 41 66,235 Substandard 3,803 1,320 8,609 4,450 8,228 19,800 652 46,862 Total $ 1,200,288 $ 818,943 $ 547,593 $ 374,575 $ 247,554 $ 763,077 $ 43,493 $ 3,995,523 The following table presents the Company’s loan portfolio aging analysis at December 31, 2022 and 2021 (in thousands): Total 90 Days Loans > 90 30-59 days 60-89 days or More Total Total Loans days and Past Due Past Due Past Due Past Due Current Receivable Accruing December 31, 2022 Construction and land development $ 20 $ 14 $ 449 $ 483 $ 143,781 $ 144,264 $ — Agricultural real estate 20 6 1 27 410,300 410,327 — 1-4 family residential properties 1,706 1,092 896 3,694 436,486 440,180 — Multifamily residential properties — — 548 548 293,798 294,346 — Commercial real estate 494 205 3,654 4,353 2,025,658 2,030,011 — Loans secured by real estate 2,240 1,317 5,548 9,105 3,310,023 3,319,128 — Agricultural loans — 53 29 82 166,756 166,838 — Commercial and industrial loans 716 24 854 1,594 1,081,366 1,082,960 — Consumer loans 326 195 278 799 96,976 97,775 — All other loans — — — — 159,511 159,511 — Total loans $ 3,282 $ 1,589 $ 6,709 $ 11,580 $ 4,814,632 $ 4,826,212 $ — December 31, 2021 Construction and land development $ 159 $ 199 $ 203 $ 561 $ 144,557 $ 145,118 $ — Agricultural real estate — 222 1 223 279,049 279,272 — 1-4 family residential properties 2,532 914 2,012 5,458 394,855 400,313 — Multifamily residential properties — — 1,676 1,676 297,266 298,942 — Commercial real estate 8,930 640 2,484 12,054 1,654,144 1,666,198 — Loans secured by real estate 11,621 1,975 6,376 19,972 2,769,871 2,789,843 — Agricultural loans — 10 588 598 150,886 151,484 — Commercial and industrial loans 381 302 1,156 1,839 830,169 832,008 — Consumer loans 388 47 118 553 77,889 78,442 — All other loans 1,854 — — 1,854 141,892 143,746 — Total loans $ 14,244 $ 2,334 $ 8,238 $ 24,816 $ 3,970,707 $ 3,995,523 $ — Individually Evaluated Loans Within all loan portfolio segments, loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Impaired loans, excluding certain troubled debt restructured loans, are placed on nonaccrual status. Impaired loans include nonaccrual loans and loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status until, in the opinion of management, the financial position of the borrower indicates there |