Loans and Allowance for Credit Losses | Note 4 – Loans and Allowance for Credit Losses Loans are stated at amortized cost net of an allowance for credit losses. Amortized cost is the unpaid principal net of unearned premiums and discounts, and net deferred origination fees and costs. Deferred loan origination fees are reduced by loan origination costs and are 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 March 31, 2023 and December 31, 2022 follows (in thousands): March 31, 2023 December 31, 2022 Construction and land development $ 159,266 $ 144,387 Agricultural real estate 402,283 410,790 1-4 family residential properties 424,373 440,018 Multifamily residential properties 302,506 295,073 Commercial real estate 2,009,524 2,036,243 Loans secured by real estate 3,297,952 3,326,511 Agricultural loans 146,679 166,695 Commercial and industrial loans 1,080,004 1,085,004 Consumer loans 88,404 97,730 All other loans 156,210 159,499 Total gross loans 4,769,249 4,835,439 Less: loans held for sale 999 338 4,768,250 4,835,101 Less: Net deferred loan fees, premiums and discounts 8,618 9,227 Allowance for credit losses 58,223 59,093 Net loans $ 4,701,409 $ 4,766,781 Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at 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 $ 22.6 million and $ 23.0 million at March 31, 2023 and December 31, 2022, respectively. Most of the Company’s business activities are with customers located near the Company's branch locations in Illinois, Missouri, and Texas. At March 31, 2023, the Company’s loan portfolio included $ 548.8 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $ 422.4 million was concentrated in corn and other grain farming. Total loans to borrowers whose businesses are directly related to agriculture decreased $ 28.4 million from $ 577.2 million at December 31, 2022 due to seasonal timing of cash flow requirements. Loans concentrated in corn and other grain farming decreased $ 22.8 million from $ 445.2 million at December 31, 2022. The Company's underwriting practices include collateralization of loans. Any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio. In addition, the Company has $ 211.4 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific issues as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $ 945.7 million of loans to lessors of non-residential buildings, and $ 462.8 million of loans to lessors of residential buildings and dwellings. 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 and most borrowers are below regulatory thresholds. The Company can occasionally have outstanding balances to one borrower up to but not exceeding the regulatory threshold should underwriting guidelines warrant. Most 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 or twenty five years , depending on the loan-to-value. The Company’s commercial real estate portfolio is 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 most 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. 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 modified loans, 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 individually evaluated loans separately from non-individually evaluated 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 modified loans. 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. To determine the allowance, the loan portfolio is segmented based on similar risk characteristics. The allowance for credit losses is estimated using a discounted cash flow (DCF) methodology. The DCF projects future cash flows over the life of the loan portfolio. Probability of default (PD) and loss given default (LGD) are key components in calculating expected losses in this model. The PD is forecasted using a regression model that determines the likelihood of default with a forward-looking forecast of unemployment rates. The LGD is the percentage of defaulted loans that is ultimately charged off. The allowance is calculated as the net present value of the expected cash flows less the amortized cost basis of the loans. Prior to 2022, the allowance for credit losses was measured on a collective (pool) basis for non-individually evaluated loans with similar risk characteristics. Historical credit loss experience provided the basis for the estimate of expected credit losses. Adjustments to expected losses are made using qualitative factors for relevant to each loan segment including merger & acquisition activity, economic conditions, changes in policies, procedures & underwriting, and concentrations. In addition, a 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. 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. Construction and Land Development Loans. Historical losses in this segment remain very low. While staffing shortages and supply chain disruptions cause risk in this segment, most projects are associated with financially strong borrowers. The qualitative factors for this segment were not changed. Agricultural Real Estate Loans. Historical losses in the segment remain very low. Farmland values have increased over an extended period of time and there are no indications that this will change in the next year. There was no change to the qualitative factors for this segment. 1- 4 Family Residential Properties Loans. The loan segment has remained stable throughout the last several years. Both adversely classified and past dues have been consistent. There was no change to the qualitative factors for this segment. Commercial Real Estate Loans. This segment includes the Company's largest balances and the largest allowance for credit losses. The qualitative factors on both non-owner occupied and owner-occupied loans for this segment were increased due to actual and expected changes in economic and business conditions. Agricultural Loans. Losses in this segment are very low. Commodity prices have been elevated and yields have been strong. The qualitative factors of this segment was not changed. Commercial and Industrial Loans. This segment includes the second largest balance of allowance for credit losses. The qualitative factors for this segment was increased due to actual and expected changes in economic and business conditions. Consumer Loans. This segment is the smallest portion of the Company's loan portfolio. There was no significant change to the qualitative factors. 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. 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 table presents the activity in the allowance for credit losses based on portfolio segment for the three months ended March 31, 2023 (in thousands): Construction Agricultural 1-4 Family Commercial Agricultural Commercial Consumer Total Three months ended March 31, 2023 Beginning balance $ 2,250 $ 1,433 $ 3,742 $ 28,157 $ 585 $ 20,808 $ 2,118 $ 59,093 Initial allowance on loans purchased with credit deterioration — — — — — — — — Provision for credit loss expense 176 ( 29 ) ( 306 ) ( 834 ) ( 8 ) 91 93 ( 817 ) Loans charged off — — 40 — — 13 427 480 Recoveries collected — — 24 4 3 256 140 427 Ending balance $ 2,426 $ 1,404 $ 3,420 $ 27,327 $ 580 $ 21,142 $ 1,924 $ 58,223 The following tables present the activity in the allowance for credit losses based on portfolio segment for the three months ended March 31, 2022 and for the year ended December 31, 2022 (in thousands): Construction and Land Development Agricultural Real Estate 1-4 Family Residential Properties Commercial Real Estate Agricultural Loans Commercial and Industrial Consumer Loans Total Three months ended March 31, 2022 Beginning balance (prior to adoption of ASC 326) $ 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 ( 25 ) 714 1,264 3,613 68 ( 2,045 ) ( 637 ) 2,952 Loans charged off 2 — 72 339 — 3 358 774 Recoveries collected — — 203 347 — 61 167 778 Ending balance $ 1,988 $ 1,971 $ 3,728 $ 30,345 $ 1,051 $ 17,348 $ 2,043 $ 58,474 Twelve months ended December 31, 2022 Beginning balance (prior to adoption of ASC 326) $ 1,743 $ 1,257 $ 2,330 $ 26,246 $ 983 $ 19,241 $ 2,855 $ 54,655 Impact of adopting ASC 326 272 — 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 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 individually evaluated 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 March 31, 2023 (in thousands): Collateral Allowance Real Estate Business Other Total for Credit Construction and land development $ 440 $ — $ — $ 440 $ 211 Agricultural real estate — — 16 16 — 1-4 family residential properties 84 — — 84 — Multifamily residential properties 1,151 — — 1,151 — Commercial real estate 5,674 — — 5,674 — Loans secured by real estate 7,349 — 16 7,365 211 Agricultural loans — — — — — Commercial and industrial loans 320 156 — 476 53 Consumer loans — — — 0 — Total loans $ 7,669 $ 156 $ 16 $ 7,841 $ 264 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, based on 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 on amortized cost basis based on risk rating category and year of origination as of March 31, 2023 (in thousands): Term Loans by Origination Year Revolving Risk rating 2023 2022 2021 2020 2019 Prior Loans Total March 31, 2023 Construction and land development loans Pass $ 9,251 $ 79,695 $ 35,078 $ 7,325 $ 15,864 $ 11,465 $ — $ 158,678 Special mention — — — — — — — — Substandard — — — — 14 465 — 479 Total $ 9,251 $ 79,695 $ 35,078 $ 7,325 $ 15,878 $ 11,930 $ — $ 159,157 Current period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — Agricultural real estate loans Pass $ 3,716 $ 167,382 $ 64,522 $ 57,166 $ 22,731 $ 80,117 $ — $ 395,634 Special mention — 112 — 251 1,240 3,499 — 5,102 Substandard — — — — — 1,221 — 1,221 Total $ 3,716 $ 167,494 $ 64,522 $ 57,417 $ 23,971 $ 84,837 $ — $ 401,957 Current period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential property loans Pass $ 8,069 $ 86,712 $ 83,578 $ 75,367 $ 26,755 $ 85,754 $ 42,060 $ 408,295 Special mention — 186 123 — 43 4,172 — 4,524 Substandard 51 970 501 523 280 9,401 — 11,726 Total $ 8,120 $ 87,868 $ 84,202 $ 75,890 $ 27,078 $ 99,327 $ 42,060 $ 424,545 Current period gross writeoffs $ — $ — $ — $ — $ — $ 40 $ — $ 40 Commercial real estate loans Pass $ 11,117 $ 555,543 $ 502,596 $ 314,461 $ 235,766 $ 658,790 $ — $ 2,278,273 Special mention — 2,163 1,089 761 1,281 7,933 — 13,227 Substandard — 3,717 471 55 891 8,821 — 13,955 Total $ 11,117 $ 561,423 $ 504,156 $ 315,277 $ 237,938 $ 675,544 $ — $ 2,305,455 Current period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — Agricultural loans Pass $ 39,064 $ 78,918 $ 18,652 $ 4,669 $ 2,184 $ 1,969 $ — $ 145,456 Special mention 22 744 — — 74 65 — 905 Substandard — 379 102 — 5 — — 486 Total $ 39,086 $ 80,041 $ 18,754 $ 4,669 $ 2,263 $ 2,034 $ — $ 146,847 Current period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans Pass $ 60,676 $ 423,532 $ 208,003 $ 169,864 $ 61,133 $ 286,309 $ — $ 1,209,517 Special mention 49 409 7,972 7,760 587 6,470 — 23,247 Substandard — 385 328 156 7 600 — 1,476 Total $ 60,725 $ 424,326 $ 216,303 $ 177,780 $ 61,727 $ 293,379 $ — $ 1,234,240 Current period gross writeoffs $ — $ — $ — $ — $ — $ 13 $ — $ 13 Consumer loans Pass $ 2,434 $ 43,310 $ 18,614 $ 10,484 $ 6,019 $ 6,964 $ — $ 87,825 Special mention — — 17 — — — — 17 Substandard 2 155 303 39 37 52 — 588 Total $ 2,436 $ 43,465 $ 18,934 $ 10,523 $ 6,056 $ 7,016 $ — $ 88,430 Current period gross writeoffs $ — $ 50 $ 61 $ 1 $ 9 $ 306 $ — $ 427 Total loans Pass $ 134,327 $ 1,435,092 $ 931,043 $ 639,336 $ 370,452 $ 1,131,368 $ 42,060 $ 4,683,678 Special mention 71 3,614 9,201 8,772 3,225 22,139 — 47,022 Substandard 53 5,606 1,705 773 1,234 20,560 — 29,931 Total $ 134,451 $ 1,444,312 $ 941,949 $ 648,881 $ 374,911 $ 1,174,067 $ 42,060 $ 4,760,631 Current period gross writeoffs $ — $ 50 $ 61 $ 1 $ 9 $ 359 $ — $ 480 The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category 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 Current period gross writeoffs $ — $ — $ — $ — $ — $ 2 $ — $ 2 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 Current period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — 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 Current period gross writeoffs $ — $ — $ 67 $ 13 $ — $ 111 $ — $ 191 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 Current period gross writeoffs $ 250 $ 22 $ — $ — $ — $ 142 $ — $ 414 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 Current period gross writeoffs $ — $ 93 $ — $ — $ — $ — $ — $ 93 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 Current period gross writeoffs $ 39 $ 311 $ 39 $ 439 $ 23 $ 19 $ — $ 870 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 Current period gross writeoffs $ 22 $ 177 $ 89 $ 10 $ 7 $ 1,075 $ — $ 1,380 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 Current period gross writeoffs $ 311 $ 603 $ 195 $ 462 $ 30 $ 1,349 $ — $ 2,950 The following table presents the Company’s loan portfolio aging analysis at March 31, 2023 and December 31, 2022 (in thousands): 30-59 60-89 90 Days or Total Past Current Total Loans Total Loans March 31, 2023 Construction and land development $ 17 $ — $ 463 $ 480 $ 158,677 $ 159,157 $ — Agricultural real estate — — 1 1 401,956 401,957 — 1-4 family residential properties 2,182 13 936 3,131 421,414 424,545 — Multifamily residential properties — — 550 550 301,258 301,808 — Commercial real estate 268 77 3,107 3,452 2,000,195 2,003,647 — Loans secured by real estate 2,467 90 5,057 7,614 3,283,500 3,291,114 — Agricultural loans — 2 481 483 146,364 146,847 — Commercial and industrial loans 71 — 930 1,001 1,077,020 1,078,021 — Consumer loans 420 118 194 732 87,698 88,430 — All other loans — — — — 156,219 156,219 — Total loans $ 2,958 $ 210 $ 6,662 $ 9,830 $ 4,750,801 $ 4,760,631 $ — 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 lo |