Loans, Allowance for Loan Losses and Credit Quality (Tables)

9 Months Ended

Sep. 30, 2022

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

Schedule of Major Classifications of Loans

Major classifications of loans at September 30, 2022 and December 31, 2021 are summarized as follows (amounts in thousands):

	September 30, 2022						December 31, 2021
	Amount			% of Total			Amount			% of Total
Residential real estate:
Closed-end 1-4 family - first lien	$	500,927			30.8	%	$	317,754			25.5	%
Closed-end 1-4 family - junior lien		8,627			0.5	%		5,434			0.4	%
Multi-family		14,192			0.9	%		9,981			0.8	%
Total residential real estate		523,746			32.2	%		333,169			26.7	%
Commercial real estate:
Nonfarm nonresidential		456,055			28.1	%		350,373			28.1	%
Farmland		51,551			3.2	%		38,808			3.1	%
Total commercial real estate		507,606			31.3	%		389,181			31.2	%
Construction and land development:
Residential		116,903			7.2	%		90,924			7.3	%
Other		127,039			7.8	%		105,192			8.4	%
Total construction and land development		243,942			15.0	%		196,116			15.7	%
Home equity lines of credit		60,736			3.7	%		49,569			4.0	%
Commercial loans:
Other commercial loans		185,351			11.4	%		201,922			16.2	%
Agricultural		47,762			2.9	%		36,063			2.9	%
State, county, and municipal loans		36,549			2.3	%		23,939			2.0	%
Total commercial loans		269,662			16.6	%		261,924			21.1	%
Consumer loans		47,362			2.9	%		43,080			3.5	%
Total gross loans		1,653,054			101.7	%		1,273,039			102.2	%
Allowance for loan losses		(23,091	)		-1.4	%		(20,922	)		-1.7	%
Net discounts		(297	)		0.0	%		(400	)		0.0	%
Net deferred loan fees		(5,371	)		-0.3	%		(5,974	)		-0.5	%
Net loans	$	1,624,295			100.0	%	$	1,245,743			100.0	%

Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following tables present the balance in the allowance for loan losses by portfolio segment. It also includes the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the periods indicated below (amounts in thousands).

	Real Estate Mortgage Loans
						Construction		Home Equity
						and Land		Lines
Allowance for Loan Losses	Residential			Commercial		Development		Of Credit		Commercial			Consumer			Total
Balance - December 31, 2021	$	2,596		$	8,038	$	2,992	$	396	$	6,486		$	414		$	20,922
Provision (credit) for loan losses		1,940			1,285		317		93		(1,378	)		3			2,260
Loan charge-offs		(42	)		-		-		-		(205	)		(22	)		(269	)
Loan recoveries		-			63		5		41		50			19			178
Balance - September 30, 2022	$	4,494		$	9,386	$	3,314	$	530	$	4,953		$	414		$	23,091
Ending balance:
Individually evaluated for impairment	$	20		$	230	$	-	$	-	$	40		$	50		$	340
Collectively evaluated for impairment		4,474			9,156		3,314		530		4,913			364			22,751
Total	$	4,494		$	9,386	$	3,314	$	530	$	4,953		$	414		$	23,091
Loans:
Individually evaluated for impairment	$	1,320		$	4,564	$	203	$	104	$	40		$	50		$	6,281
Collectively evaluated for impairment		522,426			503,042		243,732		60,632		269,622			47,312			1,646,766
Acquired loans with deteriorated credit quality		-			-		7		-		-			-			7
Total	$	523,746		$	507,606	$	243,942	$	60,736	$	269,662		$	47,362		$	1,653,054

	Real Estate Mortgage Loans
							Construction			Home Equity
							and Land			Lines
Allowance for Loan Losses	Residential			Commercial			Development			Of Credit		Commercial			Consumer			Total
Balance - December 31, 2020	$	1,676		$	6,807		$	1,749		$	268	$	5,897		$	406		$	16,803
Provision (credit) for loan losses		529			1,767			815			79		452			(84	)		3,558
Loan charge-offs		(105	)		(181	)		(2	)		-		(254	)		(56	)		(598	)
Loan recoveries		60			35			7			-		122			60			284
Balance - September 30, 2021	$	2,160		$	8,428		$	2,569		$	347	$	6,217		$	326		$	20,047
Ending balance:
Individually evaluated for impairment	$	33		$	-		$	-		$	-	$	186		$	66		$	285
Collectively evaluated for impairment		2,127			8,428			2,569			347		6,031			260			19,762
Total	$	2,160		$	8,428		$	2,569		$	347	$	6,217		$	326		$	20,047
Loans:
Individually evaluated for impairment	$	658		$	2,020		$	-		$	303	$	186		$	66		$	3,233
Collectively evaluated for impairment		311,407			380,839			182,094			47,639		276,598			42,714			1,241,291
Acquired loans with deteriorated credit quality		183			12			11			-		-			-			206
Total	$	312,248		$	382,871		$	182,105		$	47,942	$	276,784		$	42,780		$	1,244,730

Summary of Impaired Loans by Class of Loans

The following table presents impaired loans by class of loans as of September 30, 2022 (amounts in thousands).

Nonaccruing Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Loan Losses
Mortgage loans on real estate:
Residential real estate	$	242	$	242	$	242	$	-	$	-
Commercial real estate		612		612		382		230		230
Construction and land development		-		-		-		-		-
Total mortgage loans on real estate		854		854		624		230		230
Home equity lines of credit		104		104		104		-		-
Commercial loans		-		-		-		-		-
Consumer loans		-		-		-		-		-
Total Loans	$	958	$	958	$	728	$	230	$	230

Accruing Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Loan Losses
Mortgage loans on real estate:
Residential real estate	$	1,078	$	1,078	$	1,023	$	55	$	20
Commercial real estate		3,952		3,952		3,952		-		-
Construction and land development		203		203		203		-		-
Total mortgage loans on real estate		5,233		5,233		5,178		55		20
Home equity lines of credit		-		-		-		-		-
Commercial loans		40		40		-		40		40
Consumer loans		50		50		-		50		50
Total Loans	$	5,323	$	5,323	$	5,178	$	145	$	110

Total Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Loan Losses
Mortgage loans on real estate:
Residential real estate	$	1,320	$	1,320	$	1,265	$	55	$	20
Commercial real estate		4,564		4,564		4,334		230		230
Construction and land development		203		203		203		-		-
Total mortgage loans on real estate		6,087		6,087		5,802		285		250
Home equity lines of credit		104		104		104		-		-
Commercial loans		40		40		-		40		40
Consumer loans		50		50		-		50		50
Total Loans	$	6,281	$	6,281	$	5,906	$	375	$	340

The following table presents impaired loans by class of loans as of December 31, 2021 (amounts in thousands).

Nonaccruing Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Loan Losses
Mortgage loans on real estate:
Residential real estate	$	707	$	707	$	609	$	98	$	54
Commercial real estate		885		885		885		-		-
Construction and land development		-		-		-		-		-
Total mortgage loans on real estate		1,592		1,592		1,494		98		54
Home equity lines of credit		201		201		201		-		-
Commercial loans		-		-		-		-		-
Consumer loans		65		65		-		65		64
Total Loans	$	1,858	$	1,858	$	1,695	$	163	$	118

Accruing Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Loan Losses
Mortgage loans on real estate:
Residential real estate	$	290	$	290	$	-	$	290	$	32
Commercial real estate		5,040		5,040		5,040		-		-
Construction and land development		469		469		61		408		104
Total mortgage loans on real estate		5,799		5,799		5,101		698		136
Home equity lines of credit		102		102		102		-		-
Commercial loans		345		345		231		114		116
Consumer loans		54		54		-		54		54
Total Loans	$	6,300	$	6,300	$	5,434	$	866	$	306

Total Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Loan Losses
Mortgage loans on real estate:
Residential real estate	$	997	$	997	$	609	$	388	$	86
Commercial real estate		5,925		5,925		5,925		-		-
Construction and land development		469		469		61		408		104
Total mortgage loans on real estate		7,391		7,391		6,595		796		190
Home equity lines of credit		303		303		303		-		-
Commercial loans		345		345		231		114		116
Consumer loans		119		119		-		119		118
Total Loans	$	8,158	$	8,158	$	7,129	$	1,029	$	424

Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans in the nine months ended September 30, 2022 and 2021 by loan category (amounts in thousands).

	Nine Months Ended						Nine Months Ended
	September 30, 2022						September 30, 2021
	Average		Ending				Average		Ending
	Recorded		Recorded		Interest		Recorded		Recorded		Interest
	Investment		Investment		Income		Investment		Investment		Income
Mortgage loans on real estate:
Residential real estate	$	1,256	$	1,320	$	36	$	796	$	658	$	9
Commercial real estate		5,382		4,564		381		2,594		2,020		66
Construction and land development		270		203		11		175		-		-
Total mortgage loans on real estate		6,908		6,087		428		3,565		2,678		75
Home equity lines of credit		153		104		-		355		303		6
Commercial loans		228		40		9		264		186		5
Consumer loans		81		50		4		74		66		-
Total Loans	$	7,370	$	6,281	$	441	$	4,258	$	3,233	$	86

Schedule of Aging of Loans and Non-Accrual Loans

The following tables present the aging of loans and non-accrual loans as of September 30, 2022 and December 31, 2021, by class of loans (amounts in thousands).

	Accruing Loans
As of September 30, 2022	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccrual Loans		Total Loans
Mortgage loans on real estate:
Residential real estate	$	522,296	$	609	$	117	$	724	$	523,746
Commercial real estate		506,994		-		-		612		507,606
Construction and land development		243,612		321		-		9		243,942
Total mortgage loans on real estate		1,272,902		930		117		1,345		1,275,294
Home equity lines of credit		60,279		303		-		154		60,736
Commercial loans		269,429		161		24		48		269,662
Consumer loans		47,133		215		-		14		47,362
Total Loans	$	1,649,743	$	1,609	$	141	$	1,561	$	1,653,054

	Accruing Loans
As of December 31, 2021	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccrual Loans		Total Loans
Mortgage loans on real estate:
Residential real estate	$	330,718	$	1,439	$	-	$	1,012	$	333,169
Commercial real estate		387,103		1,193		-		885		389,181
Construction and land development		195,778		327		-		11		196,116
Total mortgage loans on real estate		913,599		2,959		-		1,908		918,466
Home equity lines of credit		49,229		88		-		252		49,569
Commercial loans		261,620		304		-		-		261,924
Consumer loans		42,767		201		-		112		43,080
Total Loans	$	1,267,215	$	3,552	$	-	$	2,272	$	1,273,039

Schedule of Risk Category of Loans by Class of Loans

As of September 30, 2022 and December 31, 2021, and based on the most recent analysis performed as of those dates, the risk category of loans by class of loans is as follows (amounts in thousands):

As of September 30, 2022	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential real estate	$	519,131	$	2,539	$	2,076	$	-	$	523,746
Commercial real estate		498,040		4,847		4,719		-		507,606
Construction and land development		243,670		45		227		-		243,942
Total mortgage loans on real estate		1,260,841		7,431		7,022		-		1,275,294
Home equity lines of credit		60,525		-		211		-		60,736
Commercial loans		262,366		7,205		91		-		269,662
Consumer loans		46,928		236		198		-		47,362
Total Loans	$	1,630,660	$	14,872	$	7,522	$	-	$	1,653,054

As of December 31, 2021	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential real estate	$	328,342	$	3,171	$	1,656	$	-	$	333,169
Commercial real estate		374,152		8,967		6,062		-		389,181
Construction and land development		194,310		1,306		500		-		196,116
Total mortgage loans on real estate		896,804		13,444		8,218		-		918,466
Home equity lines of credit		49,158		-		411		-		49,569
Commercial loans		251,450		10,119		355		-		261,924
Consumer loans		42,665		169		246		-		43,080
Total Loans	$	1,240,077	$	23,732	$	9,230	$	-	$	1,273,039