Loans and Allowance for Loan Losses (Tables)
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9 Months Ended |
Sep. 30, 2022 |
Receivables [Abstract] |
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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 development | | 13,476 | | | 7,376 | | Commercial construction | | 74,997 | | | 54,214 | | Residential construction | | 5,590 | | | 7,388 | | Residential | | 24,191 | | | 28,562 | | Farmland | | 54,073 | | | 54,805 | | Commercial: | | | | | Secured | | 143,200 | | | 137,062 | | Unsecured | | 25,394 | | | 21,136 | | Paycheck Protection Program (“PPP”) | | — | | | 22,124 | | Consumer and other | | 23,734 | | | 17,167 | | Subtotal | | 2,584,922 | | | 1,936,066 | | Less: Net deferred loan fees | | 1,944 | | | 1,606 | | Less: Allowance for loan losses | | 27,838 | | | 23,243 | | Loans held for investment, net of allowance for loan losses | | $ | 2,555,140 | | | $ | 1,911,217 | |
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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) | | Pass | | Watch | | Substandard | | Doubtful | | Total | Real estate: | | | | | | | | | | | Commercial | | $ | 2,205,251 | | | $ | 14,906 | | | $ | 110 | | | $ | — | | | $ | 2,220,267 | | Commercial land and development | | 13,476 | | | — | | | — | | | — | | | 13,476 | | Commercial construction | | 69,097 | | | 5,900 | | | — | | | — | | | 74,997 | | Residential construction | | 5,590 | | | — | | | — | | | — | | | 5,590 | | Residential | | 24,016 | | | — | | | 175 | | | — | | | 24,191 | | Farmland | | 54,073 | | | — | | | — | | | — | | | 54,073 | | Commercial: | | | | | | | | | | | Secured | | 141,830 | | | 1,226 | | | 144 | | | — | | | 143,200 | | Unsecured | | 25,394 | | | — | | | — | | | — | | | 25,394 | | Consumer | | 23,707 | | | — | | | 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) | | Pass | | Watch | | Substandard | | Doubtful | | Total | Real estate: | | | | | | | | | | | Commercial | | $ | 1,575,006 | | | $ | 1,970 | | | $ | 9,256 | | | $ | — | | | $ | 1,586,232 | | Commercial land and development | | 7,376 | | | — | | | — | | | — | | | 7,376 | | Commercial construction | | 48,288 | | | 5,926 | | | — | | | — | | | 54,214 | | Residential construction | | 7,388 | | | — | | | — | | | — | | | 7,388 | | Residential | | 28,384 | | | — | | | 178 | | | — | | | 28,562 | | Farmland | | 54,805 | | | — | | | — | | | — | | | 54,805 | | Commercial: | | | | | | | | | | | Secured | | 135,131 | | | 751 | | | 1,180 | | | — | | | 137,062 | | Unsecured | | 21,136 | | | — | | | — | | | — | | | 21,136 | | PPP | | 22,124 | | | — | | | — | | | — | | | 22,124 | | Consumer | | 17,167 | | | — | | | — | | | — | | | 17,167 | | Total | | $ | 1,916,805 | | | $ | 8,647 | | | $ | 10,614 | | | $ | — | | | $ | 1,936,066 | |
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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 | | Current | | Total 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 other | | 289 | | | — | | | 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 Due | | Total Past Due | | Current | | Total 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 other | | 334 | | | — | | | 334 | | | 16,833 | | | 17,167 | | Total | | $ | 334 | | | $ | — | | | $ | 334 | | | $ | 1,935,732 | | | $ | 1,936,066 | |
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Schedule of Impaired Loans |
Information related to impaired loans as of September 30, 2022 and December 31, 2021 consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | | December 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 | | | $ | — | | Residential | | 175 | | | 175 | | | — | | | 178 | | | 178 | | | — | | Commercial: | | | | | | | | | | | | | Secured | | — | | | — | | | — | | | 116 | | | 116 | | | — | | Consumer and other | | 11 | | | 11 | | | — | | | — | | | — | | | — | | | | 296 | | | 296 | | | — | | | 416 | | | 416 | | | — | | | | | | | | | | | | | | | With an allowance recorded: | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | Secured | | 145 | | | 145 | | | 145 | | | 172 | | | 172 | | | 172 | | | | 145 | | | 145 | | | 145 | | | 172 | | | 172 | | | 172 | | | | | | | | | | | | | | | Total by category: | | | | | | | | | | | | | Real estate: | | | | | | | | | | | | | Commercial | | 110 | | | 110 | | | — | | | 122 | | | 122 | | | — | | Residential | | 175 | | | 175 | | | — | | | 178 | | | 178 | | | — | | Commercial: | | | | | | | | | | | | | Secured | | 145 | | | 145 | | | 145 | | | 288 | | | 288 | | | 172 | | Consumer and other | | 11 | | | 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, | | | 2022 | | 2021 | (in thousands) | | Average Recorded Investment | | Interest Income Recognized | | | | Average Recorded Investment | | Interest Income Recognized | | | With no related allowance recorded: | | | | | | | | | | | | | Real estate: | | | | | | | | | | | | | Commercial | | $ | 112 | | | $ | — | | | | | $ | 128 | | | $ | — | | | | Residential | | 175 | | | — | | | | | 180 | | | — | | | | Commercial: | | | | | | | | | | | | | Secured | | — | | | — | | | | | 119 | | | — | | | | Consumer and other | | 12 | | | — | | | | | — | | | — | | | | | | 299 | | | — | | | | | 427 | | | — | | | | | | | | | | | | | | | | | With an allowance recorded: | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | Secured | | 148 | | | — | | | | | 137 | | | — | | | | | | 148 | | | — | | | | | 137 | | | — | | | | | | | | | | | | | | | | | Total by category: | | | | | | | | | | | | | Real estate: | | | | | | | | | | | | | Commercial | | 112 | | | — | | | | | 128 | | | — | | | | Residential | | 175 | | | — | | | | | 180 | | | — | | | | Commercial: | | | | | | | | | | | | | Secured | | 148 | | | — | | | | | 256 | | | — | | | | Consumer and other | | 12 | | | — | | | | | — | | | — | | | | 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, | | | 2022 | | 2021 | (in thousands) | | Average Recorded Investment | | Interest Income Recognized | | | | Average Recorded Investment | | Interest Income Recognized | | | With no related allowance recorded: | | | | | | | | | | | | | Real estate: | | | | | | | | | | | | | Commercial | | $ | 116 | | | $ | — | | | | | $ | 132 | | | $ | — | | | | Residential | | 177 | | | — | | | | | 181 | | | — | | | | Commercial: | | | | | | | | | | | | | Secured | | 58 | | | — | | | | | 125 | | | — | | | | Consumer and other | | 27 | | | — | | | | | — | | | — | | | | | | 378 | | | — | | | | | 438 | | | — | | | | | | | | | | | | | | | | | With an allowance recorded: | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | Secured | | 647 | | | — | | | | | 140 | | | — | | | | Consumer and other | | 13 | | | — | | | | | 36 | | | — | | | | | | 660 | | | — | | | | | 176 | | | — | | | | | | | | | | | | | | | | | Total by category: | | | | | | | | | | | | | Real estate: | | | | | | | | | | | | | Commercial | | 116 | | | — | | | | | 132 | | | — | | | | Residential | | 177 | | | — | | | | | 181 | | | — | | | | Commercial: | | | | | | | | | | | | | Secured | | 705 | | | — | | | | | 265 | | | — | | | | Consumer and other | | 40 | | | — | | | | | 36 | | | — | | | | Total impaired loans | | $ | 1,038 | | | $ | — | | | | | $ | 614 | | | $ | — | | | |
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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 | | Residential | | 175 | | | 178 | | Commercial: | | | | | Secured | | 144 | | | 288 | | Total non-accrual loans | | $ | 429 | | | $ | 588 | |
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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 Balance | | Charge-offs | | Recoveries | | Provision (Benefit) | | Ending Balance | Real estate: | | | | | | | | | | | Commercial | | $ | 16,621 | | | $ | — | | | $ | — | | | $ | 1,688 | | | $ | 18,309 | | Commercial land and development | | 68 | | | — | | | — | | | 30 | | | 98 | | Commercial construction | | 508 | | | — | | | — | | | 38 | | | 546 | | Residential construction | | 51 | | | — | | | — | | | (10) | | | 41 | | Residential | | 188 | | | — | | | — | | | (13) | | | 175 | | Farmland | | 616 | | | — | | | — | | | 48 | | | 664 | | Commercial: | | | | | | | | | | | Secured | | 6,284 | | | (346) | | | 68 | | | 356 | | | 6,362 | | Unsecured | | 265 | | | (2) | | | — | | | 15 | | | 278 | | PPP | | — | | | — | | | 21 | | | (21) | | | — | | Consumer and other | | 537 | | | (182) | | | 243 | | | (62) | | | 536 | | Unallocated | | 648 | | | — | | | — | | | 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 Balance | | Charge-offs | | Recoveries | | Provision (Benefit) | | Ending Balance | Real estate: | | | | | | | | | | | Commercial | | $ | 10,108 | | | $ | — | | | $ | — | | | $ | 1,587 | | | $ | 11,695 | | Commercial land and development | | 75 | | | — | | | — | | | 37 | | | 112 | | Commercial construction | | 491 | | | — | | | — | | | (148) | | | 343 | | Residential construction | | 46 | | | — | | | — | | | 14 | | | 60 | | Residential | | 188 | | | — | | | — | | | 19 | | | 207 | | Farmland | | 594 | | | — | | | — | | | 72 | | | 666 | | Commercial: | | | | | | | | | | | Secured | | 9,194 | | | (347) | | | 84 | | | (1,537) | | | 7,394 | | Unsecured | | 209 | | | — | | | — | | | 9 | | | 218 | | PPP | | — | | | — | | | — | | | — | | | — | | Consumer and other | | 484 | | | (85) | | | 43 | | | 196 | | | 638 | | Unallocated | | 764 | | | — | | | — | | | (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 Balance | | Charge-offs | | Recoveries | | Provision (Benefit) | | Ending Balance | Real estate: | | | | | | | | | | | Commercial | | $ | 12,869 | | | $ | — | | | $ | — | | | $ | 5,440 | | | $ | 18,309 | | Commercial land and development | | 50 | | | — | | | — | | | 48 | | | 98 | | Commercial construction | | 371 | | | — | | | — | | | 175 | | | 546 | | Residential construction | | 50 | | | — | | | — | | | (9) | | | 41 | | Residential | | 192 | | | — | | | — | | | (17) | | | 175 | | Farmland | | 645 | | | — | | | — | | | 19 | | | 664 | | Commercial: | | | | | | | | | | | Secured | | 6,859 | | | (928) | | | 152 | | | 279 | | | 6,362 | | Unsecured | | 207 | | | (2) | | | — | | | 73 | | | 278 | | PPP | | — | | | (21) | | | 21 | | | — | | | — | | Consumer and other | | 889 | | | (508) | | | 431 | | | (276) | | | 536 | | Unallocated | | 1,111 | | | — | | | — | | | (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 Balance | | Charge-offs | | Recoveries | | Provision (Benefit) | | Ending Balance | Real estate: | | | | | | | | | | | Commercial | | $ | 9,358 | | | $ | — | | | $ | — | | | $ | 2,337 | | | $ | 11,695 | | Commercial land and development | | 77 | | | — | | | — | | | 35 | | | 112 | | Commercial construction | | 821 | | | — | | | — | | | (478) | | | 343 | | Residential construction | | 87 | | | — | | | — | | | (27) | | | 60 | | Residential | | 220 | | | — | | | — | | | (13) | | | 207 | | Farmland | | 615 | | | — | | | — | | | 51 | | | 666 | | Commercial: | | | | | | | | | | | Secured | | 9,476 | | | (787) | | | 219 | | | (1,514) | | | 7,394 | | Unsecured | | 179 | | | — | | | — | | | 39 | | | 218 | | PPP | | — | | | — | | | — | | | — | | | — | | Consumer and other | | 632 | | | (157) | | | 184 | | | (21) | | | 638 | | Unallocated | | 724 | | | — | | | — | | | (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 impairment | | Loans collectively evaluated for impairment | | Total loans | | Loans individually evaluated for impairment | | Loans collectively evaluated for impairment | | Total 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: | | | | | | | | | | | | | Secured | | 145 | | | 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 impairment | | Loans collectively evaluated for impairment | | Total loans | | Loans individually evaluated for impairment | | Loans collectively evaluated for impairment | | Total 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: | | | | | | | | | | | | | Secured | | 172 | | | 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 impairment | | Loans collectively evaluated for impairment | | Total loans | | Loans individually evaluated for impairment | | Loans collectively evaluated for impairment | | Total 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: | | | | | | | | | | | | | Secured | | 134 | | | 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 | |
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