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Loans and Allowance for Loan Losses (Tables)
9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable The following table presents the balance of each major product type within the Company’s portfolio as of the dates indicated.
(in thousands)September 30,
2022
December 31,
2021
Real estate:
Commercial$2,220,267 $1,586,232 
Commercial land and development13,476 7,376 
Commercial construction74,997 54,214 
Residential construction5,590 7,388 
Residential24,191 28,562 
Farmland54,073 54,805 
Commercial:
Secured143,200 137,062 
Unsecured25,394 21,136 
Paycheck Protection Program (“PPP”)— 22,124 
Consumer and other23,734 17,167 
Subtotal2,584,922 1,936,066 
Less: Net deferred loan fees1,944 1,606 
Less: Allowance for loan losses27,838 23,243 
Loans held for investment, net of allowance for loan losses$2,555,140 $1,911,217 
Summary of Credit Quality Indicators
The following table summarizes the credit quality indicators related to the Company’s loans by class as of September 30, 2022:
(in thousands)PassWatchSubstandardDoubtfulTotal
Real estate:
Commercial$2,205,251 $14,906 $110 $— $2,220,267 
Commercial land and development13,476 — — — 13,476 
Commercial construction69,097 5,900 — — 74,997 
Residential construction5,590 — — — 5,590 
Residential24,016 — 175 — 24,191 
Farmland54,073 — — — 54,073 
Commercial:
Secured141,830 1,226 144 — 143,200 
Unsecured25,394 — — — 25,394 
Consumer23,707 — 27 — 23,734 
Total$2,562,434 $22,032 $456 $— $2,584,922 
The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2021:
(in thousands)PassWatchSubstandardDoubtfulTotal
Real estate:
Commercial$1,575,006 $1,970 $9,256 $— $1,586,232 
Commercial land and development7,376 — — — 7,376 
Commercial construction48,288 5,926 — — 54,214 
Residential construction7,388 — — — 7,388 
Residential28,384 — 178 — 28,562 
Farmland54,805 — — — 54,805 
Commercial:
Secured135,131 751 1,180 — 137,062 
Unsecured21,136 — — — 21,136 
PPP22,124 — — — 22,124 
Consumer17,167 — — — 17,167 
Total $1,916,805 $8,647 $10,614 $— $1,936,066 
Summary of Age Analysis of Past Due Loans
The age analysis of past due loans by class as of September 30, 2022 consisted of the following:
(in thousands)Past Due
30-89
Days
Greater Than
90 Days
Total Past
Due
CurrentTotal Loans
Receivable
Real estate:
Commercial$— $— $— $2,220,267 $2,220,267 
Commercial land and development— — — 13,476 13,476 
Commercial construction— — — 74,997 74,997 
Residential construction— — — 5,590 5,590 
Residential— — — 24,191 24,191 
Farmland— — — 54,073 54,073 
Commercial:
Secured— — — 143,200 143,200 
Unsecured— — — 25,394 25,394 
PPP— — — — — 
Consumer and other289 — 289 23,445 23,734 
Total$289 $— $289 $2,584,633 $2,584,922 
The age analysis of past due loans by class as of December 31, 2021 consisted of the following:
(in thousands)Past DueTotal Past
Due
CurrentTotal Loans
Receivable
30-89
Days
Greater Than
90 Days
Real estate:
Commercial$— $— $— $1,586,232 $1,586,232 
Commercial land and development— — — 7,376 7,376 
Commercial construction— — — 54,214 54,214 
Residential construction— — — 7,388 7,388 
Residential— — — 28,562 28,562 
Farmland— — — 54,805 54,805 
Commercial:
Secured— — — 137,062 137,062 
Unsecured— — — 21,136 21,136 
PPP— — — 22,124 22,124 
Consumer and other334 — 334 16,833 17,167 
Total $334 $— $334 $1,935,732 $1,936,066 
Schedule of Impaired Loans
Information related to impaired loans as of September 30, 2022 and December 31, 2021 consisted of the following:
September 30, 2022December 31, 2021
(in thousands)Recorded
Investment
Unpaid
Principal
Balance
Related
Allowance
Recorded
Investment
Unpaid
Principal
Balance
Related
Allowance
With no related allowance recorded:
Real estate:
Commercial$110 $110 $— $122 $122 $— 
Residential175 175 — 178 178 — 
Commercial:
Secured— — — 116 116 — 
Consumer and other11 11 — — — — 
296 296 — 416 416 — 
With an allowance recorded:
Commercial:
Secured145 145 145 172 172 172 
145 145 145 172 172 172 
Total by category:
Real estate:
Commercial110 110 — 122 122 — 
Residential175 175 — 178 178 — 
Commercial:
Secured145 145 145 288 288 172 
Consumer and other11 11 — — — — 
Total impaired loans$441 $441 $145 $588 $588 $172 
No collateral dependent loans were in process of foreclosure at September 30, 2022 or December 31, 2021.
Information related to impaired loans for the three months ended September 30, 2022 and 2021 consisted of the following:
Three months ended September 30,
20222021
(in thousands)Average Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
With no related allowance recorded:
Real estate:
Commercial$112 $— $128 $— 
Residential175 — 180 — 
Commercial:
Secured— — 119 — 
Consumer and other12 — — — 
299 — 427 — 
With an allowance recorded:
Commercial:
Secured148 — 137 — 
148 — 137 — 
Total by category:
Real estate:
Commercial112 — 128 — 
Residential175 — 180 — 
Commercial:
Secured148 — 256 — 
Consumer and other12 — — — 
Total impaired loans$447 $— $564 $— 
Information related to impaired loans for the nine months ended September 30, 2022 and 2021 consisted of the following:
Nine months ended September 30,
20222021
(in thousands)Average Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
With no related allowance recorded:
Real estate:
Commercial$116 $— $132 $— 
Residential177 — 181 — 
Commercial:
Secured58 — 125 — 
Consumer and other27 — — — 
378 — 438 — 
With an allowance recorded:
Commercial:
Secured647 — 140 — 
Consumer and other13 — 36 — 
660 — 176 — 
Total by category:
Real estate:
Commercial116 — 132 — 
Residential177 — 181 — 
Commercial:
Secured705 — 265 — 
Consumer and other40 — 36 — 
Total impaired loans$1,038 $— $614 $— 
Schedule of Non-accrual Loans
Non-accrual loans, segregated by class, were as follows as of September 30, 2022 and December 31, 2021:
(in thousands)September 30,
2022
December 31,
2021
Real estate:
Commercial$110 $122 
Residential175 178 
Commercial:
Secured144 288 
Total non-accrual loans$429 $588 
Disclosure of Activity in the Allowance For Loan Losses
The following table discloses activity in the allowance for loan losses for the three months ended September 30, 2022.
Beginning BalanceCharge-offsRecoveriesProvision (Benefit)Ending Balance
Real estate:
Commercial$16,621 $— $— $1,688 $18,309 
Commercial land and development68 — — 30 98 
Commercial construction508 — — 38 546 
Residential construction51 — — (10)41 
Residential188 — — (13)175 
Farmland616 — — 48 664 
Commercial:
Secured6,284 (346)68 356 6,362 
Unsecured265 (2)— 15 278 
PPP— — 21 (21)— 
Consumer and other537 (182)243 (62)536 
Unallocated648 — — 181 829 
Total$25,786 $(530)$332 $2,250 $27,838 
The following table discloses activity in the allowance for loan losses for the three months ended September 30, 2021.
Beginning BalanceCharge-offsRecoveriesProvision (Benefit)Ending Balance
Real estate:
Commercial$10,108 $— $— $1,587 $11,695 
Commercial land and development75 — — 37 112 
Commercial construction491 — — (148)343 
Residential construction46 — — 14 60 
Residential188 — — 19 207 
Farmland594 — — 72 666 
Commercial:
Secured9,194 (347)84 (1,537)7,394 
Unsecured209 — — 218 
PPP— — — — — 
Consumer and other484 (85)43 196 638 
Unallocated764 — — (249)515 
Total$22,153 $(432)$127 $— $21,848 
The following table discloses activity in the allowance for loan losses for the nine months ended September 30, 2022.
Beginning BalanceCharge-offsRecoveriesProvision (Benefit)Ending Balance
Real estate:
Commercial$12,869 $— $— $5,440 $18,309 
Commercial land and development50 — — 48 98 
Commercial construction371 — — 175 546 
Residential construction50 — — (9)41 
Residential192 — — (17)175 
Farmland645 — — 19 664 
Commercial:
Secured6,859 (928)152 279 6,362 
Unsecured207 (2)— 73 278 
PPP— (21)21 — — 
Consumer and other889 (508)431 (276)536 
Unallocated1,111 — — (282)829 
Total$23,243 $(1,459)$604 $5,450 $27,838 
The following table discloses activity in the allowance for loan losses for the nine months ended September 30, 2021.
Beginning BalanceCharge-offsRecoveriesProvision (Benefit)Ending Balance
Real estate:
Commercial$9,358 $— $— $2,337 $11,695 
Commercial land and development77 — — 35 112 
Commercial construction821 — — (478)343 
Residential construction87 — — (27)60 
Residential220 — — (13)207 
Farmland615 — — 51 666 
Commercial:
Secured9,476 (787)219 (1,514)7,394 
Unsecured179 — — 39 218 
PPP— — — — — 
Consumer and other632 (157)184 (21)638 
Unallocated724 — — (209)515 
Total$22,189 $(944)$403 $200 $21,848 
The following table summarizes the allocation of the allowance for loan losses by impairment methodology as of September 30, 2022.
Ending allowance balance allocated to:Ending balance of:
Loans individually evaluated for impairmentLoans collectively evaluated for impairmentTotal loansLoans individually evaluated for impairmentLoans collectively evaluated for impairmentTotal loans
Real estate:
Commercial$— $18,309 $18,309 $110 $2,220,157 $2,220,267 
Commercial land and development— 98 98 — 13,476 13,476 
Commercial construction— 546 546 — 74,997 74,997 
Residential construction— 41 41 — 5,590 5,590 
Residential— 175 175 175 24,016 24,191 
Farmland— 664 664 — 54,073 54,073 
Commercial:
Secured145 6,217 6,362 145 143,055 143,200 
Unsecured— 278 278 — 25,394 25,394 
PPP— — — — — — 
Consumer and other— 536 536 11 23,723 23,734 
Unallocated— 829 829 — — — 
Total$145 $27,693 $27,838 $441 $2,584,481 $2,584,922 
The following table summarizes the allocation of the allowance for loan losses by impairment methodology as of December 31, 2021.
Ending allowance balance allocated to:Ending balance of:
Loans individually evaluated for impairmentLoans collectively evaluated for impairmentTotal loansLoans individually evaluated for impairmentLoans collectively evaluated for impairmentTotal loans
Real estate:
Commercial$— $12,869 $12,869 $122 $1,586,110 $1,586,232 
Commercial land and development— 50 50 — 7,376 7,376 
Commercial construction— 371 371 — 54,214 54,214 
Residential construction— 50 50 — 7,388 7,388 
Residential— 192 192 178 28,384 28,562 
Farmland— 645 645 — 54,805 54,805 
Commercial:
Secured172 6,687 6,859 288 136,774 137,062 
Unsecured— 207 207 — 21,136 21,136 
PPP— — — — 22,124 22,124 
Consumer and other— 889 889 — 17,167 17,167 
Unallocated— 1,111 1,111 — — — 
Total$172 $23,071 $23,243 $588 $1,935,478 $1,936,066 
The following table summarizes the allocation of the allowance for loan losses by impairment methodology as of September 30, 2021.
Ending allowance balance allocated to:Ending balance of:
Loans individually evaluated for impairmentLoans collectively evaluated for impairmentTotal loansLoans individually evaluated for impairmentLoans collectively evaluated for impairmentTotal loans
Real estate:
Commercial$— $11,695 $11,695 $126 $1,316,934 $1,317,060 
Commercial land and development— 112 112 — 15,726 15,726 
Commercial construction— 343 343 — 47,511 47,511 
Residential construction— 60 60 — 8,438 8,438 
Residential— 207 207 179 29,175 29,354 
Farmland— 666 666 — 55,077 55,077 
Commercial:
Secured134 7,260 7,394 252 136,913 137,165 
Unsecured— 218 218 — 21,655 21,655 
PPP— — — — 61,499 61,499 
Consumer and other— 638 638 — 13,528 13,528 
Unallocated— 515 515 — — — 
Total$134 $21,714 $21,848 $557 $1,706,456 $1,707,013