Loans | Loans Classes of loans are as follows: March 31, 2022 December 31, (Amounts In Thousands) Agricultural $ 104,900 $ 106,933 Commercial and financial 223,702 222,002 Real estate: Construction, 1 to 4 family residential 87,390 80,486 Construction, land development and commercial 135,353 127,021 Mortgage, farmland 236,573 232,744 Mortgage, 1 to 4 family first liens 919,734 909,564 Mortgage, 1 to 4 family junior liens 111,278 114,342 Mortgage, multi-family 381,942 382,792 Mortgage, commercial 404,769 401,377 Loans to individuals 31,568 32,687 Obligations of state and political subdivisions 50,397 50,285 $ 2,687,606 $ 2,660,233 Net unamortized fees and costs 186 299 $ 2,687,792 $ 2,660,532 Less allowance for credit losses 35,850 35,470 $ 2,651,942 $ 2,625,062 As of March 31, 2022 and December 31, 2021, the Company has outstanding balances of $0.91 million and $5.34 million, respectively, of loans issued under the Paycheck Protection Program (PPP). For the three months ended March 31, 2022 and 2021, the Company recognized none and $1.88 million, respectively, of deferred PPP loan fees in interest income. Changes in the allowance for credit losses, the allowance for credit losses applicable to individually evaluated loans and the related loan balance of individually evaluated loans for the three months ended March 31, 2022 were as follows: Three Months Ended March 31, 2022 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for credit losses: Beginning balance $ 2,261 $ 4,269 $ 2,300 $ 3,433 $ 11,498 $ 10,498 $ 1,211 $ 35,470 Charge-offs — (48) — — (140) (1) (150) (339) Recoveries 14 123 3 43 207 22 43 455 Credit loss expense (benefit) 139 551 44 (166) (127) (285) 108 264 Ending balance $ 2,414 $ 4,895 $ 2,347 $ 3,310 $ 11,438 $ 10,234 $ 1,212 $ 35,850 Ending balance, individually evaluated for credit losses $ 1 $ 191 $ 59 $ 1 $ 40 $ 312 $ 1 $ 605 Ending balance, collectively evaluated for credit losses $ 2,413 $ 4,704 $ 2,288 $ 3,309 $ 11,398 $ 9,922 $ 1,211 $ 35,245 Loans: Ending balance $ 104,900 $ 223,702 $ 222,743 $ 236,573 $ 1,031,012 $ 786,711 $ 81,965 $ 2,687,606 Ending balance, individually evaluated for credit losses $ 581 $ 1,981 $ 1,040 $ 1,276 $ 5,582 $ 5,154 $ 159 $ 15,773 Ending balance, collectively evaluated for credit losses $ 104,319 $ 221,721 $ 221,703 $ 235,297 $ 1,025,430 $ 781,557 $ 81,806 $ 2,671,833 Changes in the allowance for loan losses for the three months ended March 31, 2021 were as follows: Three Months Ended March 31, 2021 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance, prior to adoption of ASC 326 $ 2,508 $ 4,885 $ 2,319 $ 4,173 $ 12,368 $ 9,415 $ 1,402 $ 37,070 Impact of adopting ASC 326 (328) 298 327 763 522 1,396 (232) 2,746 Charge-offs — (30) — — (75) — (66) (171) Recoveries 32 234 34 — 239 139 37 715 Credit loss expense (benefit) (65) (273) (392) (268) (1,558) (1,329) 145 (3,740) Ending balance $ 2,147 $ 5,114 $ 2,288 $ 4,668 $ 11,496 $ 9,621 $ 1,286 $ 36,620 Ending balance, individually evaluated for impairment $ 1 $ 299 $ — $ — $ 62 $ 166 $ 79 $ 607 Ending balance, collectively evaluated for impairment $ 2,146 $ 4,815 $ 2,288 $ 4,668 $ 11,434 $ 9,455 $ 1,207 $ 36,013 Loans: Ending balance $ 96,042 $ 281,337 $ 184,012 $ 246,665 $ 996,379 $ 790,831 $ 84,858 $ 2,680,124 Ending balance, individually evaluated for impairment $ 1,387 $ 1,947 $ 521 $ 1,916 $ 7,338 $ 6,145 $ 79 $ 19,333 Ending balance, collectively evaluated for impairment $ 94,655 $ 279,390 $ 183,491 $ 244,749 $ 989,041 $ 784,686 $ 84,779 $ 2,660,791 Changes in the allowance for credit losses for off-balance sheet credit exposures for the three months ended March 31, 2022 were as follows: Three Months Ended March 31, 2022 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for credit losses for off-balance sheet credit exposures: Beginning balance $ 383 $ 1,118 $ 849 $ 113 $ 794 $ 559 $ 34 $ 3,850 Credit loss expense (benefit) 130 302 277 (13) 131 34 (21) 840 (Charge-offs), net recoveries — — — — — — — — Ending balance $ 513 $ 1,420 $ 1,126 $ 100 $ 925 $ 593 $ 13 $ 4,690 Three Months Ended March 31 , 2021 Agricultural Commercial and Real Estate: Real Estate: Real Estate: Real Estate: Other Total (Amounts In Thousands) Allowance for credit losses for off-balance sheet credit exposures: Beginning balance, prior to adoption of ASC 326 $ — $ — $ — $ — $ — $ — $ — $ — Impact of adopting ASC 326 385 1,585 736 180 471 212 15 3,584 Credit loss expense 58 239 197 22 175 38 27 756 (Charge-offs), net recoveries — — — — — — — — Ending balance $ 443 $ 1,824 $ 933 $ 202 $ 646 $ 250 $ 42 $ 4,340 Credit loss expense for off-balance sheet credit exposures is included in credit loss expense on the consolidated statement of income for the three months ended March 31, 2022 and 2021. Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with applicable bank regulations. The Company's risk rating methodology assigns risk ratings ranging from 1 to 6, where a higher rating represents higher risk. The Company differentiates its lending portfolios into loans sharing common risk characteristics for which expected credit loss is measured on a pool basis and loans not sharing common risk characteristics for which credit loss is measured individually. The below are descriptions of the credit quality indicators: Excellent – Excellent rated loans are prime quality loans covered by highly liquid collateral with generous margins or supported by superior current financial conditions reflecting substantial net worth, relative to total credit extended, and based on assets of a stable and non-speculative nature whose values can be readily verified. Identified repayment source or cash flow is abundant and assured. Loans are secured with cash, cash equivalents, or collateral with very low loan to values. The borrower would qualify for unsecured debt and guarantors provide excellent secondary support to the relationship. The borrower has a long-term relationship with Hills Bank, maintains high deposit balances and has an established payment history with Hills Bank and an established business in an established industry. Good – Good rated loans are adequately secured by readily marketable collateral or good financial condition characterized by liquidity, flexibility and sound net worth. Loans are supported by sound primary and secondary payment sources and timely and accurate financial information. The relationship is not quite as strong as a borrower that is assigned an excellent rating but still has a very strong liquidity position, low leverage, and track record of strong performance. These loans have a strong collateral position with limited risk to bank capital. The collateral will not materially lose value in a distressed liquidation. Guarantors provide additional secondary support to mitigate possible bank losses. The borrower has a long-term relationship with Hills Bank with an established track record of payments; loans with shorter remaining loan amortization; deposit balances are consistent; loan payments could be made from cash reserves in the interim period; and source of income is coming from a stable industry. Satisfactory – Satisfactory rated loans are loans to borrowers of average financial means not especially vulnerable to changes in economic or other circumstances, where the major support for the extension is sufficient collateral of a marketable nature, and the primary source of repayment is seen to be clear and adequate. The borrower's financial performance is consistent, ratios and trends are positive and the primary repayment source can clearly be identified and supported with acceptable financial information. The loan relationship could be vulnerable to changes in economic or industry conditions but have the ability to absorb unexpected issues. The loan collateral coverage is considered acceptable and guarantors can provide financial support but net worth might not be as liquid as a 1 or 2 rated relationship. The borrower has an established relationship with Hills Bank. The relationship is making timely loan payments, any operating line is revolving and deposit balances are positive with limited to no overdrafts. Management and industry is considered stable. Monitor – Monitor rated loans are identified by management as warranting special attention for a variety of reasons that may bear on ultimate collectability. This may be due to adverse trends, a particular industry, loan structure, or repayment that is dependent on projections, or a one-time occurrence . The relationship l iquidity levels are minimal and the borrower’s leverage position is brought into question. The primary repayment source is showing signs of being stressed or is not proven. If the borrower performs as planned, the loan will be repaid. The collateral coverage is still considered acceptable but there might be some concern with the type of real estate securing the debt or highly dependent on chattel assets. Some loans may be better secured than others. Guarantors still provide some support but there is not an abundance of financial strength supporting the guaranty. A monitor credit may be appropriate when the borrower is experiencing rapid growth which is impacting liquidity levels and increasing debt levels. Other attributes to consider would include if the business is a start-up or newly acquired, if the relationship has significant financing relationships with other financial institutions, the quality of financial information being received, management depth of the company, and changes to the business model. The track history with Hills Bank has some deficiencies such as slow payments or some overdrafts. Special Mention – Special mention rated loans are supported by a marginal payment capacity and are marginally protected by collateral. There are identified weaknesses that if not monitored and corrected may adversely affect the Company’s credit position. A special mention credit would typically have a weakness in one of the general categories (cash flow, collateral position or payment history) but not in all categories. Potential indicators of a special mention would include past due payments, overdrafts, management issues, poor financial performance, industry issues, or the need for additional short-term borrowing. The ability to continue to make payments is in question; there are “red flags” such as past due payments, non-revolving credit lines, overdrafts, and the inability to sell assets. The borrower is experiencing delinquent taxes, legal issues, etc., obtaining financial information has become a challenge, collateral coverage is marginal at best, and the value and condition could be brought into question. Collateral document deficiencies have been noted and if not addressed, could become material. Guarantors provide minimal support for this relationship. The credit may include an action plan or follow up established in the asset quality process. There is a change in the borrower’s communication pattern. Industry issues may be impacting the relationship. Adverse credit scores or history of payment deficiencies could be noted. Substandard – Substandard loans are not adequately supported by the paying capacity of the borrower and may be inadequately collateralized. These loans have a well-defined weakness or weaknesses. Full repayment of the loan(s) according to the original terms and conditions is in question or not expected. For these loans, it is more probable than not that the Company could sustain some loss if the deficiency(ies) is not corrected. There are identified shortfalls in the primary repayment source such as carry over debt, past due payments, and overdrafts. Obtaining quality and timely financial information is a weakness. The loan is under secured with exposure that could impact bank capital. It appears the liquidation of collateral has become the repayment source. The collateral may be difficult to foreclose or have little to no value. Collateral documentation deficiencies have been noted during the review process. Guarantor(s) provide minimal to no support of the relationship. The borrower’s communication with the bank continues to decrease and the borrower is not addressing the situation. There is some concern about the borrower’s ability and willingness to repay the loans. Problems may be the result of external issues such as economic or industry related issues. The following tables present the credit quality indicators and origination years by type of loan in each category as of March 31, 2022 (amounts in thousands): Agricultural March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 603 $ 327 $ 254 $ 77 $ 7 $ — $ 3,147 $ 4,415 Good 687 1,401 1,317 516 44 61 4,540 8,566 Satisfactory 5,221 9,284 3,785 1,389 1,667 349 23,079 44,774 Monitor 8,817 5,899 3,187 943 729 409 21,817 41,801 Special Mention 189 1,652 5 177 — — 2,753 4,776 Substandard — 213 53 102 — — 200 568 Total $ 15,517 $ 18,776 $ 8,601 $ 3,204 $ 2,447 $ 819 $ 55,536 $ 104,900 Commercial and Financial March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 446 $ 893 $ 645 $ 4 $ 235 $ 19 $ 3,733 $ 5,975 Good 4,017 11,951 4,446 910 1,006 1,597 12,291 36,218 Satisfactory 14,016 38,285 17,383 6,670 3,228 1,883 43,972 125,437 Monitor 5,544 13,845 8,343 1,837 967 652 19,472 50,660 Special Mention 219 305 469 127 62 85 211 1,478 Substandard 1,316 450 — 89 — 91 1,988 3,934 Total $ 25,558 $ 65,729 $ 31,286 $ 9,637 $ 5,498 $ 4,327 $ 81,667 $ 223,702 Real Estate: Construction, 1 to 4 Family Residential March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ — $ — $ — $ — $ — $ 2 $ 2 Good 212 6,392 — — — — 20,175 26,779 Satisfactory 1,070 7,775 — — — — 40,258 49,103 Monitor 24 869 — — — — 9,915 10,808 Special Mention — — — — — — 593 593 Substandard — 105 — — — — — 105 Total $ 1,306 $ 15,141 $ — $ — $ — $ — $ 70,943 $ 87,390 Real Estate: Construction, Land Development and Commercial March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ 5,079 $ — $ — $ — $ 142 $ — $ 5,221 Good 397 3,187 1,200 — — 389 13,677 18,850 Satisfactory 4,234 18,360 3,030 1,556 260 970 50,683 79,093 Monitor 646 5,851 306 7 37 73 17,782 24,702 Special Mention — — — — — — — — Substandard 7,000 191 295 — — — 1 7,487 Total $ 12,277 $ 32,668 $ 4,831 $ 1,563 $ 297 $ 1,574 $ 82,143 $ 135,353 Real Estate: Mortgage, Farmland March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 2,433 $ 105 $ 1,216 $ 120 $ — $ 41 $ 130 $ 4,045 Good 12,731 14,659 8,210 1,701 1,636 6,096 5,421 50,454 Satisfactory 23,507 48,441 24,613 4,433 8,047 12,175 8,837 130,053 Monitor 18,502 8,079 6,555 4,099 685 3,222 4,303 45,445 Special Mention 3,672 439 284 289 — 230 — 4,914 Substandard — 1,063 357 — 47 194 1 1,662 Total $ 60,845 $ 72,786 $ 41,235 $ 10,642 $ 10,415 $ 21,958 $ 18,692 $ 236,573 Real Estate: Mortgage, 1 to 4 Family First Liens March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ — $ 12 $ — $ — $ — $ 6 $ 18 Good — 192 602 95 — 574 1,283 2,746 Satisfactory 2,339 13,008 9,387 5,330 6,453 9,864 54,691 101,072 Monitor 26 271 1,058 69 296 367 3,338 5,425 Special Mention 21 107 491 34 51 168 111 983 Substandard — 88 206 78 101 123 438 1,033 Total $ 2,386 $ 13,666 $ 11,756 $ 5,606 $ 6,901 $ 11,096 $ 59,867 $ 111,278 Real Estate: Mortgage, 1 to 4 Family Junior Liens March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 644 $ 459 $ 902 $ — $ 16 $ 542 $ 1 $ 2,564 Good 9,029 5,053 10,100 2,619 2,244 11,867 2,351 43,263 Satisfactory 70,049 223,599 166,255 61,627 60,498 163,853 9,028 754,909 Monitor 6,752 24,317 32,624 4,858 6,041 15,512 4,501 94,605 Special Mention 131 1,713 3,266 1,200 1,114 4,533 85 12,042 Substandard 684 1,545 1,816 932 1,540 5,833 1 12,351 Total $ 87,289 $ 256,686 $ 214,963 $ 71,236 $ 71,453 $ 202,140 $ 15,967 $ 919,734 Real Estate: Mortgage, Multi-Family March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ 2,516 $ 4,454 $ — $ — $ 685 $ — $ 7,655 Good 18,198 16,696 17,796 1,514 — 9,038 — 63,242 Satisfactory 29,143 105,764 42,587 7,097 830 15,286 16,832 217,539 Monitor 15,863 23,598 33,527 174 — 1,374 5,407 79,943 Special Mention — 632 — 819 — — — 1,451 Substandard — 12,112 — — — — — 12,112 Total $ 63,204 $ 161,318 $ 98,364 $ 9,604 $ 830 $ 26,383 $ 22,239 $ 381,942 Real Estate: Mortgage, Commercial March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 2,257 $ 592 $ 16,530 $ — $ — $ 1,265 $ — $ 20,644 Good 9,513 24,182 23,478 2,569 1,335 8,000 9,697 78,774 Satisfactory 24,862 69,705 43,704 14,146 10,953 21,227 18,468 203,065 Monitor 10,524 14,281 48,020 3,877 1,460 9,633 3,366 91,161 Special Mention — 6,372 516 171 — 801 — 7,860 Substandard — 1,126 1,705 130 203 101 — 3,265 Total $ 47,156 $ 116,258 $ 133,953 $ 20,893 $ 13,951 $ 41,027 $ 31,531 $ 404,769 Loans to Individuals March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ — $ — $ — $ — $ — $ — $ — Good — — — 49 — 4 1 54 Satisfactory 3,032 10,144 4,475 1,785 746 10,533 59 30,774 Monitor 164 231 97 27 41 1 2 563 Special Mention 8 49 27 8 3 — — 95 Substandard 11 21 39 10 — — 1 82 Total $ 3,215 $ 10,445 $ 4,638 $ 1,879 $ 790 $ 10,538 $ 63 $ 31,568 Obligations of State and Political Subdivisions March 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ — $ — $ — $ — $ 5,891 $ — $ 5,891 Good — — 1,956 — — 8,874 — 10,830 Satisfactory 909 1,006 2,012 1,544 691 15,033 9,261 30,456 Monitor — — 924 197 245 1,853 1 3,220 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 909 $ 1,006 $ 4,892 $ 1,741 $ 936 $ 31,651 $ 9,262 $ 50,397 The following table presents the credit quality indicators by type of loans in each category as of December 31, 2021 (amounts in thousands): Agricultural December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 762 $ 213 $ 30 $ 10 $ — $ — $ 2,312 $ 3,327 Good 1,799 1,767 603 46 52 26 7,593 11,886 Satisfactory 10,335 6,404 1,476 1,770 403 66 26,285 46,739 Monitor 8,125 5,017 998 765 164 253 23,995 39,317 Special Mention 1,662 11 85 — 7 — 2,807 4,572 Substandard 592 69 203 — — — 228 1,092 Total $ 23,275 $ 13,481 $ 3,395 $ 2,591 $ 626 $ 345 $ 63,220 $ 106,933 Commercial and Financial December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 965 $ 924 $ 4 $ 235 $ 31 $ — $ 3,391 $ 5,550 Good 13,722 5,570 1,105 1,086 276 1,494 20,709 43,962 Satisfactory 44,964 20,847 7,684 3,582 2,106 331 41,832 121,346 Monitor 18,337 8,019 3,591 1,123 297 416 13,368 45,151 Special Mention 603 525 353 70 102 4 174 1,831 Substandard 1,092 670 266 54 92 — 1,988 4,162 Total $ 79,683 $ 36,555 $ 13,003 $ 6,150 $ 2,904 $ 2,245 $ 81,462 $ 222,002 Real Estate: Construction, 1 to 4 Family Residential December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ — $ — $ — $ — $ — $ — $ — Good 212 — — — — — 18,755 18,967 Satisfactory 7,457 94 — — — — 42,988 50,539 Monitor 1,307 — — — — — 9,187 10,494 Special Mention — — — — — — 374 374 Substandard 111 — — — — — 1 112 Total $ 9,087 $ 94 $ — $ — $ — $ — $ 71,305 $ 80,486 Real Estate: Construction, Land Development and Commercial December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 5,079 $ — $ — $ — $ 143 $ 4 $ — $ 5,226 Good 3,294 1,200 — — 153 242 12,678 17,567 Satisfactory 22,907 4,354 2,356 263 1,081 21 40,048 71,030 Monitor 5,694 547 7 38 74 — 18,832 25,192 Special Mention — — — — — — — — Substandard 7,515 298 193 — — — — 8,006 Total $ 44,489 $ 6,399 $ 2,556 $ 301 $ 1,451 $ 267 $ 71,558 $ 127,021 Real Estate: Mortgage, Farmland December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ 3,568 $ 124 $ 60 $ 80 $ 41 $ 134 $ 4,007 Good 17,827 14,308 2,144 2,460 5,932 3,929 3,844 50,444 Satisfactory 51,639 35,616 4,689 8,358 6,745 8,339 8,242 123,628 Monitor 8,532 16,925 5,518 3,901 2,154 4,866 5,695 47,591 Special Mention 4,031 288 — — 298 190 — 4,807 Substandard 1,283 447 291 47 — 199 — 2,267 Total $ 83,312 $ 71,152 $ 12,766 $ 14,826 $ 15,209 $ 17,564 $ 17,915 $ 232,744 Real Estate: Mortgage, 1 to 4 Family First Liens December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 462 $ 914 $ 427 $ 19 $ 149 $ 404 $ 1 $ 2,376 Good 9,598 12,300 3,124 3,443 3,091 10,943 2,496 44,995 Satisfactory 233,412 189,247 69,037 65,201 60,906 118,608 8,443 744,854 Monitor 24,908 33,863 5,038 6,527 7,273 12,203 4,066 93,878 Special Mention 1,682 3,422 887 962 1,051 3,168 — 11,172 Substandard 1,571 1,261 1,129 1,609 576 6,142 1 12,289 Total $ 271,633 $ 241,007 $ 79,642 $ 77,761 $ 73,046 $ 151,468 $ 15,007 $ 909,564 Real Estate: Mortgage, 1 to 4 Family Junior Liens December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ 13 $ — $ — $ — $ — $ 6 $ 19 Good 193 611 96 — 108 482 1,374 2,864 Satisfactory 13,684 10,116 5,854 7,309 5,230 6,053 55,496 103,742 Monitor 326 1,233 70 365 140 281 2,801 5,216 Special Mention 103 489 35 56 42 110 142 977 Substandard 77 209 79 441 74 99 545 1,524 Total $ 14,383 $ 12,671 $ 6,134 $ 8,171 $ 5,594 $ 7,025 $ 60,364 $ 114,342 Real Estate: Mortgage, Multi-Family December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 2,539 $ 4,513 $ — $ — $ — $ 701 $ — $ 7,753 Good 16,931 35,396 1,555 — — 9,289 — 63,171 Satisfactory 107,192 69,287 13,635 2,030 1,561 14,660 14,764 223,129 Monitor 26,088 35,886 176 — 131 1,584 5,669 69,534 Special Mention 640 — 820 — — — — 1,460 Substandard 12,186 — — — — 5,559 — 17,745 Total $ 165,576 $ 145,082 $ 16,186 $ 2,030 $ 1,692 $ 31,793 $ 20,433 $ 382,792 Real Estate: Mortgage, Commercial December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ 597 $ 16,781 $ — $ — $ 3,313 $ 350 $ 1 $ 21,042 Good 20,143 36,773 2,619 1,356 3,811 7,085 9,812 81,599 Satisfactory 75,040 52,653 14,727 12,091 9,707 17,398 16,333 197,949 Monitor 18,664 49,774 3,923 2,202 3,037 8,461 3,387 89,448 Special Mention 5,791 795 303 — 554 337 — 7,780 Substandard 1,528 1,721 — 208 — 102 — 3,559 Total $ 121,763 $ 158,497 $ 21,572 $ 15,857 $ 20,422 $ 33,733 $ 29,533 $ 401,377 Loans to Individuals December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ — $ — $ — $ — $ — $ — $ — Good — — 67 21 5 — 1 94 Satisfactory 12,162 5,606 2,212 967 141 10,867 57 32,012 Monitor 200 160 15 46 3 — 1 425 Special Mention 37 32 29 4 — — 1 103 Substandard 12 24 12 — 1 3 1 53 Total $ 12,411 $ 5,822 $ 2,335 $ 1,038 $ 150 $ 10,870 $ 61 $ 32,687 Obligations of State and Political Subdivisions December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Grade: Excellent $ — $ — $ — $ — $ — $ 6,076 $ — $ 6,076 Good — 1,984 — — — 9,051 — 11,035 Satisfactory 1,009 2,034 1,551 706 11,557 3,634 9,400 29,891 Monitor — 933 203 249 — 1,898 — 3,283 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 1,009 $ 4,951 $ 1,754 $ 955 $ 11,557 $ 20,659 $ 9,400 $ 50,285 Past due loans as of March 31, 2022 and December 31, 2021 were as follows: 30 - 59 Days 60 - 89 Days 90 Days Total Past Current Total Accruing Loans (Amounts In Thousands) March 31, 2022 Agricultural $ 1,860 $ 253 $ 252 $ 2,365 $ 102,535 $ 104,900 $ 40 Commercial and financial 2,394 700 109 3,203 220,499 223,702 102 Real estate: Construction, 1 to 4 family residential 1,013 — 383 1,396 85,994 87,390 383 Construction, land development and commercial 559 391 163 1,113 134,240 135,353 66 Mortgage, farmland 3,221 160 107 3,488 233,085 236,573 60 Mortgage, 1 to 4 family first liens 6,038 621 2,071 8,730 911,004 919,734 68 Mortgage, 1 to 4 family junior liens 268 — 121 389 110,889 111,278 — Mortgage, multi-family — — — — 381,942 381,942 — Mortgage, commercial 2,258 2 959 3,219 401,550 404,769 — Loans to individuals 147 11 — 158 31,410 31,568 — Obligations of state and political subdivisions — — 159 159 50,238 50,397 159 $ 17,758 $ 2,138 $ 4,324 $ 24,220 $ 2,663,386 $ 2,687,606 $ 878 December 31, 2021 Agricultural $ 41 $ — $ 219 $ 260 $ 106,673 $ 106,933 $ 6 Commercial and financial 300 537 468 1,305 220,697 222,002 91 Real estate: Construction, 1 to 4 family residential 276 — — 276 80,210 80,486 — Construction, land development and commercial 194 66 96 356 126,665 127,021 — Mortgage, farmland 503 362 — 865 231,879 232,744 — Mortgage, 1 to 4 family first liens 5,085 864 2,481 8,430 901,134 909,564 104 Mortgage, 1 to 4 family junior liens 246 41 124 411 113,931 114,342 — Mortgage, multi-family 640 — — 640 382,152 382,792 — Mortgage, commercial 466 — 829 1,295 400,082 401,377 — Loans to individuals 177 26 5 208 32,479 32,687 — Obligations of state and political subdivisions 394 — — 394 49,891 50,285 — $ 8,322 $ 1,896 $ 4,222 $ 14,440 $ 2,645,793 $ 2,660,233 $ 201 The Company does not have a material amount of loans that are past due less than 90 days where there are serious doubts as to the ability of the borrowers to comply with the loan repayment terms. Certain nonaccrual and TDR loan information by loan type at March 31, 2022 and December 31, 2021, was as follows: March 31, 2022 December 31, 2021 Non-accrual Accruing loans TDR loans Non- Accruing loans TDR loans (Amounts In Thousands) (Amounts In Thousands) Agricultural $ 221 $ 40 $ 138 $ 221 $ 6 $ 374 Commercial and financial 918 102 740 707 91 1,085 Real estate: Construction, 1 to 4 family residential 104 383 — 111 — — Construction, land development and commercial 287 66 199 290 — 202 Mortgage, farmland 52 60 1,165 251 — 1,206 Mortgage, 1 to 4 family first liens 4,234 68 1,316 4,685 104 1,364 Mortgage, 1 to 4 family junior liens 196 — 19 200 — 20 Mortgage, multi-family — — 1,451 — — 1,460 Mortgage, commercial 2,130 — 1,725 2,026 — 2,210 Loans to individuals — — — — — — Obligations of state and political subdivisions — 159 — — — — $ 8,142 $ 878 $ 6,753 $ 8,491 $ 201 $ 7,921 (1) There were $3.43 million and $2.28 million of TDR loans included within nonaccrual loans as of March 31, 2022 and December 31, 2021, respectively. Loans 90 days or more past due that are still accruing interest increased $0.68 million from December 31, 2021 to March 31, 2022. As of March 31, 2022, there were ten accruing loans past due 90 days or more with an average loan balance of $0.09 million. There were 6 accruing loans past due 90 days or more as of December 31, 2021 with an average loan balance of $0.03 million. The accruing loans past due 90 days or more balances are believed to be adequately collateralized and the Company expects to collect all principal and interest as contractually due under these loans. There was no interest income recognized on nonaccrual loans for the three months ended March 31, 2022 and year ended December 31, 2021. The Company may modify the terms of a loan to maximize the collection of amounts due. Such a modification is considered a troubled debt restructuring (“TDR”). In most cases, the modification is either a reduction in interest rate, conversion to interest only payments or an extension of the maturity date. The borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term, so a concessionary modification is granted to the borrower that would otherwise not be considered. TDR loans accrue interest as long as the borrower complies with the revised terms and conditions and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Section 4013 of the CARES Act, “Temporary Relief From Troubled Debt Restructurings,” allows financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time during the COVID-19 pandemic. As of March 31, 2022, the total amount of the eligible loans in deferral (deferral of principal and/or interest) that met the requirements set forth under the CARES Act and therefore were not considered TDRs was 16 loans, totaling $9.3 million. As of December 31, 2021, there were 16 loans, totaling $9.4 million that met the requirements and were not considered TDRs. As of March 31, 2022 and December 31, 2021, COVID-19 related payment deferrals were approximately 0.22% and 0.12% of total loans, respectively. Below is a summary of information for TDR loans as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Number Recorded Commitments Number Recorded Commitments (Amounts In Thousands) (Amounts In Thousands) Agricultural 3 $ 351 $ 160 4 $ 586 $ — Commercial and financial 11 1,644 — 12 1,116 60 Real estate: Construction, 1 to 4 family residential 1 105 — — — — Construction, land development and commercial 2 390 — 1 202 — Mortgage, farmland 5 1,169 — 5 1,409 — Mortgage, 1 to 4 family first liens 11 1,329 — 14 1,441 — Mortgage, 1 to 4 family junior liens 1 19 — 1 20 — Mortgage, multi-family 2 1,451 — 2 1,460 — Mortgage, commercial 11 3,725 — 11 3,963 — Loans to individuals — — — — — — Obligations of state and political subdivisions — — — — — — 47 $ 10,183 $ 160 50 $ 10,197 $ 60 The following is a summary of TDR loans that were modified during the three months ended March 31, 2022: Three Months Ended March 31, 2022 Number Pre-modification Post-modification (Amounts In Thousands) Agricultural — $ — $ — Commercial and financial 1 371 371 Real estate: Construction, 1 to 4 family residential 1 105 105 Construction, land development and commercial 1 191 191 Mortgage, farmland — — — Mortgage, 1 to 4 family first lien — — — Mortgage, 1 to 4 family junior liens — — — Mortgage, multi-family — — — Mortgage, commercial 1 274 274 Loans to individuals — — — Obligations of state and political subdivisions — — — 4 $ 941 $ 941 The Company has allocated $0.55 million of allowance for TDR loans and the Company had commitments to lend $0.16 million in additional borrowings to restructured loan customers as of March 31, 2022. The Company had commitments to lend $0.06 million in additional borrowings to restructured loan customers as of December 31, 2021. These commitments were in the normal course of business. The additional borrowings were not used to facilitate payments on these loans. The modifications of the terms of loans performed during the three months ended March 31, 2022 included extensions of the maturity date. There were no TDR loans that were in payment default (defined as past due 90 days or more) during the period ended March 31, 2022 and the year ended December 31, 2021. The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: Primary Type of Collateral Real Estate Accounts Receivable Equipment Other Total ACL Allocation (Amounts In Thousands) March 31, 2022 Agricultural $ 545 $ — $ 36 $ — $ 581 $ 1 Commercial and financial 1,878 — 103 — 1,981 191 Real estate: Construction, 1 to 4 family residential 488 — — — 488 58 Construction, land development and commercial 552 — — — 552 1 Mortgage, farmland 1,276 — — — 1,276 1 Mortgage, 1 to 4 family first liens 5,441 — — — 5,441 33 Mortgage, 1 to 4 family junior liens 141 — — — 141 7 Mortgage, multi-family 1,451 — — — 1,451 — Mortgage, commercial 3,703 — — — 3,703 312 Loans to individuals — — — — — — Obligations of state and political subdivisions 159 — — — 159 1 $ 15,634 $ — $ 139 $ — $ 15,773 $ 605 Primary Type of Collateral Real Estate Accounts Receivable Equipment Other Total ACL Allocation (Amounts In Thousands) December 31, 2021 Agricultural $ 734 $ — $ 54 $ — $ 788 $ 1 Commercial and financial 1,951 — 111 — 2,062 189 Real estate: Construction, 1 to 4 family residential 111 — — — 111 111 Construction, land development and co |