Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2022

Allowance for Loan Losses

Schedule of allowance for loan losses activity and balance

The following tables present the activity in the allowance for loan losses for the nine months ended September 30, 2022 and September 30, 2021.

	September 30, 2022
	Real Estate
			Construction &
			Land
Dollars in thousands	Commercial		Development		Residential		Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance, December 31, 2021	$	13,091	$	2,824	$	2,769	$	711	$	5	$	632	$	20,032
Charge-offs		(1)		—		—		—		—		—		(1)
Recoveries		—		—		—		1		—		—		1
Provision		345		97		(186)		(208)		1		(49)		—
Ending Balance, September 30, 2022	$	13,435	$	2,921	$	2,583	$	504	$	6	$	583	$	20,032

	September 30, 2021
	Real Estate
			Construction &
			Land
Dollars in thousands	Commercial		Development		Residential		Commercial		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance, December 31, 2020	$	10,602	$	2,617	$	2,430	$	1,007	$	11	$	350	$	17,017
Charge-offs		(90)		—		—		(1)		—		—		(91)
Recoveries		—		—		—		—		—		—		—
Provision		2,001		(782)		88		(291)		(6)		1,770		2,780
Ending Balance, September 30, 2021	$	12,513	$	1,835	$	2,518	$	715	$	5	$	2,120	$	19,706

The following tables present the balance of the allowance for loan losses, the allowance by impairment methodology, total loans, and loans by impairment methodology as of September 30, 2022 and December 31, 2021.

	September 30, 2022
	Real Estate
			Construction &
			Land
Dollars in thousands	Commercial		Development		Residential		Commercial		Consumer		Unallocated		Total
Allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		13,435		2,921		2,583		504		6		583		20,032
Total allowance	$	13,435	$	2,921	$	2,583	$	504	$	6	$	583	$	20,032
Loans:
Individually evaluated for impairment	$	—	$	—	$	530	$	—	$	—	$	—	$	530
Collectively evaluated for impairment		1,091,221		199,324		385,166		45,105		585		—		1,721,401
Total loans	$	1,091,221	$	199,324	$	385,696	$	45,105	$	585	$	—	$	1,721,931

	December 31, 2021
	Real Estate
			Construction &
			Land
Dollars in thousands	Commercial		Development		Residential		Commercial		Consumer		Unallocated		Total
Allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		13,091		2,824		2,769		711		5		632		20,032
Total allowance	$	13,091	$	2,824	$	2,769	$	711	$	5	$	632	$	20,032
Loans:
Individually evaluated for impairment	$	—	$	—	$	549	$	—	$	—	$	—	$	549
Collectively evaluated for impairment		968,442		231,090		341,942		122,945		586		—		1,665,005
Total loans	$	968,442	$	231,090	$	342,491	$	122,945	$	586	$	—	$	1,665,554

Schedule of impaired loans

The following tables present a summary of impaired loans and the related allowance as of September 30, 2022 and December 31, 2021.

	September 30, 2022
			Recorded		Recorded
	Unpaid		Investment		Investment		Total				Average		Interest
	Principal		with		with		Recorded		Related		Recorded		Income
(Dollars in thousands)	Balance		No Allowance		Allowance		Investment		Allowance		Investment		Recognized
Real Estate Loans
Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and land development		—		—		—		—		—		—		—
Residential		530		530		—		530		—		540		15
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total Impaired Loans	$	530	$	530	$	—	$	530	$	—	$	540	$	15

	December 31, 2021
			Recorded		Recorded
	Unpaid		Investment		Investment		Total				Average		Interest
	Principal		with		with		Recorded		Related		Recorded		Income
(Dollars in thousands)	Balance		No Allowance		Allowance		Investment		Allowance		Investment(1)		Recognized(1)
Real Estate Loans
Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and land development		—		—		—		—		—		—		—
Residential		549		549		—		549		—		569		24
Commercial		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total Impaired Loans	$	549	$	549	$	—	$	549	$	—	$	569	$	24

(1) Amounts shown for the twelve month period ended December 31, 2021.

Schedule of past due and non-accrual loans

The following tables present a summary of past due and non-accrual loans by class as of September 30, 2022 and December 31, 2021.

	September 30, 2022
	30-59 Days		60-89 Days		90 Days or								90 Days or More
	Past		Past		More		Total Past				Total		Past Due and		Nonaccrual
(Dollars in thousands)	Due		Due		Past Due		Due		Current		Loans		Still Accruing		Loans
Real Estate Loans
Commercial	$	—	$	—	$	—	$	—	$	1,091,221	$	1,091,221	$	—	$	—
Construction and land development		—		—		—		—		199,324		199,324		—		—
Residential		—		—		—		—		385,696		385,696		—		—
Commercial		—		—		—		—		45,105		45,105		—		—
Consumer		—		—		—		—		585		585		—		—
Total Loans	$	—	$	—	$	—	$	—	$	1,721,931	$	1,721,931	$	—	$	—

	December 31, 2021
	30-59 Days		60-89 Days		90 Days or								90 Days or More
	Past		Past		More		Total Past				Total		Past Due and		Nonaccrual
(Dollars in thousands)	Due		Due		Past Due		Due		Current		Loans		Still Accruing		Loans
Real Estate Loans
Commercial	$	—	$	—	$	—	$	—	$	968,442	$	968,442	$	—	$	—
Construction and land development		—		—		—		—		231,090		231,090		—		—
Residential		—		—		—		—		342,491		342,491		—		—
Commercial		—		—		—		—		122,945		122,945		—		—
Consumer		—		—		—		—		586		586		—		—
Total Loans	$	—	$	—	$	—	$	—	$	1,665,554	$	1,665,554	$	—	$	—

Schedule of credit quality information

The following tables present a summary of credit quality information for loans by class as of September 30, 2022 and December 31, 2021.

	September 30, 2022
			Special								Total
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Loss		Loans
Real Estate Loans
Commercial	$	1,091,221	$	—	$	—	$	—	$	—	$	1,091,221
Construction and land development		197,174		2,150		—		—		—		199,324
Residential		385,588		—		108		—		—		385,696
Commercial		45,105		—		—		—		—		45,105
Consumer		585		—		—		—		—		585
Total Loans	$	1,719,673	$	2,150	$	108	$	—	$	—	$	1,721,931

	December 31, 2021
			Special								Total
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Loss		Loans
Real Estate Loans
Commercial	$	961,177	$	7,029	$	236	$	—	$	—	$	968,442
Construction and land development		230,704		—		386		—		—		231,090
Residential		342,377		—		114		—		—		342,491
Commercial		122,945		—		—		—		—		122,945
Consumer		586		—		—		—		—		586
Total Loans	$	1,657,789	$	7,029	$	736	$	—	$	—	$	1,665,554