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

3 Months Ended

Mar. 31, 2023

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

Schedule of Major Classifications of Loans

Major classifications of loans at March 31, 2023 and December 31, 2022 are summarized as follows (amounts in thousands):

	March 31, 2023						December 31, 2022
	Amount			% of Total			Amount			% of Total
Residential real estate:
Closed-end 1-4 family - first lien	$	612,574			32.5	%	$	573,033			32.2	%
Closed-end 1-4 family - junior lien		11,069			0.6	%		9,422			0.5	%
Multi-family		15,216			0.7	%		14,106			0.8	%
Total residential real estate		638,859			33.8	%		596,561			33.5	%
Commercial real estate:
Nonfarm nonresidential		530,243			28.1	%		497,766			28.0	%
Farmland		55,776			3.0	%		53,691			3.0	%
Total commercial real estate		586,019			31.1	%		551,457			31.0	%
Construction and land development:
Residential		131,194			7.0	%		121,363			6.8	%
Other		140,206			7.4	%		135,127			7.6	%
Total construction and land development		271,400			14.4	%		256,490			14.4	%
Home equity lines of credit		69,227			3.7	%		64,215			3.6	%
Commercial loans:
Other commercial loans		212,462			11.3	%		193,053			10.9	%
Agricultural		46,942			2.5	%		56,946			3.2	%
State, county, and municipal loans		40,951			2.2	%		40,964			2.3	%
Total commercial loans		300,355			16.0	%		290,963			16.4	%
Consumer loans		51,157			2.7	%		49,592			2.8	%
Total gross loans		1,917,017			101.7	%		1,809,278			101.7	%
Allowance for credit losses		(25,714	)		-1.4	%		(24,310	)		-1.4	%
Net discounts		(179	)		0.0	%		(279	)		0.0	%
Net deferred loan fees		(6,324	)		-0.3	%		(5,872	)		-0.3	%
Net loans	$	1,884,800			100.0	%	$	1,778,817			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 credit losses by portfolio segment. It also includes the balance in the allowance for credit 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 Credit Losses	Residential		Commercial		Development		Of Credit		Commercial			Consumer			Total
Balance - December 31, 2022 prior to adoption of ASC 326	$	5,088	$	10,057	$	3,377	$	562	$	4,778		$	448		$	24,310
Impact of adopting ASC 326		-		-		-		-		73			7			80
Provision for credit loss expense		253		892		138		156		(208	)		80			1,311
Loan charge-offs		-		-		-		-		(67	)		(34	)		(101	)
Loan recoveries		-		77		-		-		33			4			114
Balance - March 31, 2023	$	5,341	$	11,026	$	3,515	$	718	$	4,609		$	505		$	25,714
Ending balance:
Individually evaluated for impairment	$	-	$	693	$	-	$	-	$	312		$	42		$	1,047
Collectively evaluated for impairment		5,341		10,333		3,515		718		4,297			463			24,667
Total	$	5,341	$	11,026	$	3,515	$	718	$	4,609		$	505		$	25,714
Loans:
Individually evaluated for impairment	$	1,818	$	6,729	$	177	$	-	$	591		$	42		$	9,357
Collectively evaluated for impairment		637,041		579,290		271,223		69,227		299,764			51,115			1,907,660
Total	$	638,859	$	586,019	$	271,400	$	69,227	$	300,355		$	51,157		$	1,917,017

	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		112		251		(28	)		17		(354	)		2		-
Loan charge-offs		-		-		-			-		(62	)		-		(62	)
Loan recoveries		-		5		4			-		16			9		34
Balance - March 31, 2022	$	2,708	$	8,294	$	2,968		$	413	$	6,086		$	425	$	20,894
Ending balance:
Individually evaluated for impairment	$	42	$	-	$	115		$	-	$	48		$	105	$	310
Collectively evaluated for impairment		2,666		8,294		2,853			413		6,038			320		20,584
Total	$	2,708	$	8,294	$	2,968		$	413	$	6,086		$	425	$	20,894
Loans:
Individually evaluated for impairment	$	1,928	$	5,780	$	408		$	102	$	270		$	106	$	8,594
Collectively evaluated for impairment		355,972		426,549		208,042			51,662		248,166			42,952		1,333,343
Acquired loans with deteriorated credit quality		11		-		7			-		-			-		18
Total	$	357,911	$	432,329	$	208,457		$	51,764	$	248,436		$	43,058	$	1,341,955

Summary of Collateral Dependent Impaired Loans by Class of Loans

The following table presents collateral dependent impaired loans by class of loans as of March 31, 2023 (amounts in thousands).

Nonaccruing Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Credit Losses
Mortgage loans on real estate:
Residential real estate	$	733	$	733	$	733	$	-	$	-
Commercial real estate		2,873		2,873		364		2,509		693
Construction and land development		-		-		-		-		-
Total mortgage loans on real estate		3,606		3,606		1,097		2,509		693
Home equity lines of credit		-		-		-		-		-
Commercial loans		558		558		-		558		279
Consumer loans		-		-		-		-		-
Total Loans	$	4,164	$	4,164	$	1,097	$	3,067	$	972

Accruing Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Credit Losses
Mortgage loans on real estate:
Residential real estate	$	1,085	$	1,085	$	1,085	$	-	$	-
Commercial real estate		3,856		3,856		3,856		-		-
Construction and land development		177		177		177		-		-
Total mortgage loans on real estate		5,118		5,118		5,118		-		-
Home equity lines of credit		-		-		-		-		-
Commercial loans		33		33		-		33		33
Consumer loans		42		42		-		42		42
Total Loans	$	5,193	$	5,193	$	5,118	$	75	$	75

Total Impaired Loans	Unpaid Principal Balance		Recorded Investment		Impaired Loans With No Allowance		Impaired Loans With Allowance		Allowance for Credit Losses
Mortgage loans on real estate:
Residential real estate	$	1,818	$	1,818	$	1,818	$	-	$	-
Commercial real estate		6,729		6,729		4,220		2,509		693
Construction and land development		177		177		177		-		-
Total mortgage loans on real estate		8,724		8,724		6,215		2,509		693
Home equity lines of credit		-		-		-		-		-
Commercial loans		591		591		-		591		312
Consumer loans		42		42		-		42		42
Total Loans	$	9,357	$	9,357	$	6,215	$	3,142	$	1,047

The following table presents collateral dependent impaired loans by class of loans as of December 31, 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	$	239	$	239	$	239	$	-	$	-
Commercial real estate		599		599		373		226		241
Construction and land development		-		-		-		-		-
Total mortgage loans on real estate		838		838		612		226		241
Home equity lines of credit		-		-		-		-		-
Commercial loans		-		-		-		-		-
Consumer loans		-		-		-		-		-
Total Loans	$	838	$	838	$	612	$	226	$	241

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	$	1,012	$	1,012	$	1,012	$	-	$	-
Commercial real estate		6,178		6,178		6,178		-		-
Construction and land development		190		190		190		-		-
Total mortgage loans on real estate		7,380		7,380		7,380		-		-
Home equity lines of credit		-		-		-		-		-
Commercial loans		595		595		-		595		317
Consumer loans		47		47		-		47		47
Total Loans	$	8,022	$	8,022	$	7,380	$	642	$	364

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	$	1,251	$	1,251	$	1,251	$	-	$	-
Commercial real estate		6,777		6,777		6,551		226		241
Construction and land development		190		190		190		-		-
Total mortgage loans on real estate		8,218		8,218		7,992		226		241
Home equity lines of credit		-		-		-		-		-
Commercial loans		595		595		-		595		317
Consumer loans		47		47		-		47		47
Total Loans	$	8,860	$	8,860	$	7,992	$	868	$	605

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 three months ended March 31, 2023 and 2022 by loan category (amounts in thousands).

	Three Months Ended						Three Months Ended
	March 31, 2023						March 31, 2022
	Average		Ending				Average		Ending
	Recorded		Recorded		Interest		Recorded		Recorded		Interest
	Investment		Investment		Income		Investment		Investment		Income
Mortgage loans on real estate:
Residential real estate	$	1,535	$	1,818	$	14	$	1,462	$	1,928	$	5
Commercial real estate		6,753		6,729		117		5,853		5,780		130
Construction and land development		184		177		4		439		408		5
Total mortgage loans on real estate		8,472		8,724		135		7,754		8,116		140
Home equity lines of credit		-		-		-		202		102		1
Commercial loans		593		591		1		307		270		4
Consumer loans		44		42		1		113		106		1
Total Loans	$	9,109	$	9,357	$	137	$	8,376	$	8,594	$	146

Schedule of Performance Status of Loans by Class of Loans

The following tables present the performance status of loans as of March 31, 2023 and December 31, 2022, by class of loans (amounts in thousands).

As of March 31, 2023	Performing		Nonperforming		Total
Mortgage loans on real estate:
Residential real estate	$	637,636	$	1,223	$	638,859
Commercial real estate		583,146		2,873		586,019
Construction and land development		271,392		8		271,400
Total mortgage loans on real estate		1,492,174		4,104		1,496,278
Home equity lines of credit		69,178		49		69,227
Commercial loans		299,797		558		300,355
Consumer loans		51,154		3		51,157
Total Loans	$	1,912,303	$	4,714	$	1,917,017

As of December 31, 2022	Performing		Nonperforming		Total
Mortgage loans on real estate:
Residential real estate	$	595,792	$	769	$	596,561
Commercial real estate		550,858		599		551,457
Construction and land development		256,481		9		256,490
Total mortgage loans on real estate		1,403,131		1,377		1,404,508
Home equity lines of credit		64,166		49		64,215
Commercial loans		290,897		66		290,963
Consumer loans		49,590		2		49,592
Total Loans	$	1,807,784	$	1,494	$	1,809,278

Schedule of Aging of Loans and Non-Accrual Loans

The following tables present the aging of loans and non-accrual loans as of March 31, 2023 and December 31, 2022, by class of loans (amounts in thousands).

	Accruing Loans
As of March 31, 2023	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccrual Loans		Total Loans		Nonaccrual With No ACL
Mortgage loans on real estate:
Residential real estate	$	636,697	$	939	$	-	$	1,223	$	638,859	$	1,223
Commercial real estate		582,863		283		-		2,873		586,019		364
Construction and land development		270,948		444		-		8		271,400		8
Total mortgage loans on real estate		1,490,508		1,666		-		4,104		1,496,278		1,595
Home equity lines of credit		68,728		450		-		49		69,227		49
Commercial loans		299,410		387		-		558		300,355		-
Consumer loans		50,815		339		-		3		51,157		3
Total Loans	$	1,909,461	$	2,842	$	-	$	4,714	$	1,917,017	$	1,647

	Accruing Loans
As of December 31, 2022	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccrual Loans		Total Loans		Nonaccrual With No ACL
Mortgage loans on real estate:
Residential real estate	$	594,055	$	1,737	$	72	$	697	$	596,561	$	454
Commercial real estate		545,354		5,504		-		599		551,457		-
Construction and land development		255,989		492		-		9		256,490		9
Total mortgage loans on real estate		1,395,398		7,733		72		1,305		1,404,508		463
Home equity lines of credit		64,016		150		-		49		64,215		26
Commercial loans		290,485		412		66		-		290,963		-
Consumer loans		49,251		339		-		2		49,592		2
Total Loans	$	1,799,150	$	8,634	$	138	$	1,356	$	1,809,278	$	491

Schedule of Loan Balances Classified by Credit Quality Indicator, Risk Category, Loan Type and Based on Year of OriginatIion

The following table presents loan balances classified by credit quality indicator, loan type and based on year of origination as of March 31, 2023 (amounts in thousands).

	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Residential real estate
Pass	$	54,339	$	320,455	$	131,200	$	77,618	$	19,998	$	29,612	$	-	$	633,222
Special Mention		355		1,653		543		96		28		328		-		3,003
Substandard		37		900		252		343		547		555		-		2,634
Doubtful		-		-		-		-		-		-		-		-
Total residential real estate	$	54,731	$	323,008	$	131,995	$	78,057	$	20,573	$	30,495	$	-	$	638,859
Commercial real estate
Pass	$	31,735	$	197,039	$	109,805	$	103,497	$	50,447	$	82,549	$	-	$	575,072
Special Mention		435		-		-		1,201		-		2,388		-		4,024
Substandard		199		784		262		48		52		5,578		-		6,923
Doubtful		-		-		-		-		-		-		-		-
Total commercial real estate	$	32,369	$	197,823	$	110,067	$	104,746	$	50,499	$	90,515	$	-	$	586,019
Construction and land development
Pass	$	23,340	$	181,482	$	47,033	$	7,288	$	3,156	$	8,026	$	-	$	270,325
Special Mention		211		387		240		-		25		14		-		877
Substandard		-		177		8		12		-		1		-		198
Doubtful		-		-		-		-		-		-		-		-
Total construction and land development	$	23,551	$	182,046	$	47,281	$	7,300	$	3,181	$	8,041	$	-	$	271,400
Home equity lines of credit
Pass	$	7,604	$	27,273	$	12,725	$	6,106	$	3,492	$	11,712	$	-	$	68,912
Special Mention		-		210		-		-		-		-		-		210
Substandard		-		-		-		-		-		105		-		105
Doubtful		-		-		-		-		-		-		-		-
Total home equity lines of credit	$	7,604	$	27,483	$	12,725	$	6,106	$	3,492	$	11,817	$	-	$	69,227
Commercial loans
Pass	$	29,909	$	116,270	$	61,143	$	51,206	$	13,384	$	20,959	$	-	$	292,871
Special Mention		142		572		509		1,055		209		4,330		-		6,817
Substandard		76		-		-		28		-		563		-		667
Doubtful		-		-		-		-		-		-		-		-
Total commercial loans	$	30,127	$	116,842	$	61,652	$	52,289	$	13,593	$	25,852	$	-	$	300,355
Consumer loans
Pass	$	6,721	$	20,932	$	11,799	$	5,136	$	2,929	$	3,289	$	-	$	50,806
Special Mention		8		163		37		21		8		6		-		243
Substandard		-		23		31		9		-		45		-		108
Doubtful		-		-		-		-		-		-		-		-
Total consumer loans	$	6,729	$	21,118	$	11,867	$	5,166	$	2,937	$	3,340	$	-	$	51,157
Total Loans
Pass	$	153,648	$	863,451	$	373,705	$	250,851	$	93,406	$	156,147	$	-	$	1,891,208
Special Mention		1,151		2,985		1,329		2,373		270		7,066		-		15,174
Substandard		312		1,884		553		440		599		6,847		-		10,635
Doubtful		-		-		-		-		-		-		-		-
Total loans	$	155,111	$	868,320	$	375,587	$	253,664	$	94,275	$	170,060	$	-	$	1,917,017

As of December 31, 2022, the risk category of loans by class of loans is as follows (amounts in thousands):

As of December 31, 2022	Pass		Special Mention		Substandard		Doubtful		Total
Mortgage loans on real estate:
Residential real estate	$	591,882	$	2,648	$	2,031	$	-	$	596,561
Commercial real estate		539,777		4,706		6,974		-		551,457
Construction and land development		256,200		77		213		-		256,490
Total mortgage loans on real estate		1,387,859		7,431		9,218		-		1,404,508
Home equity lines of credit		63,861		212		142		-		64,215
Commercial loans		283,359		7,008		596		-		290,963
Consumer loans		49,206		238		148		-		49,592
Total Loans	$	1,784,285	$	14,889	$	10,104	$	-	$	1,809,278