Schedule of allowance for loan losses activity and balance

The following tables present the activity in the allowance for loan credit losses for the nine months ended September 30, 2023.


	September 30, 2023
	Real Estate
			Construction &
			Land
Dollars in thousands	Commercial		Development		Residential		Commercial		Consumer		Unallocated		Total
Beginning balance, December 31, 2022	$	13,205	$	2,860	$	3,044	$	456	$	5	$	638	$	20,208
Adjustment to allowance for adoption of ASC 326		(2,649)		476		4,552		367		57		(638)		2,165
Charge-offs		—		—		—		—		—		—		—
Recoveries		—		—		—		2		—		—		2
Provision for (recovery of) credit losses		2,187		(1,148)		(3,014)		(360)		(4)		—		(2,339)
Ending balance, September 30, 2023	$	12,743	$	2,188	$	4,582	$	465	$	58	$	—	$	20,036

The following table presents the activity for the allowance for loan losses for the nine months ended September 30, 2022.


	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 for (recovery of) loan losses		345		97		(186)		(208)		1		(49)		—
Ending Balance, September 30, 2022	$	13,435	$	2,921	$	2,583	$	504	$	6	$	583	$	20,032

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 December 31, 2022 and September 30, 2022, respectively. There were no collateral dependent or individually evaluated loans as of September 30, 2023.


	December 31, 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		13,205		2,860		3,044		456		5		638		20,208
Total allowance	$	13,205	$	2,860	$	3,044	$	456	$	5	$	638	$	20,208

Loans:
Individually evaluated for impairment	$	—	$	—	$	418	$	—	$	—	$	—	$	418
Collectively evaluated for impairment		1,118,127		195,027		426,423		44,924		529		—		1,785,030
Total loans	$	1,118,127	$	195,027	$	426,841	$	44,924	$	529	$	—	$	1,785,448


	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

Schedule of past due and non-accrual loans


	September 30, 2023
	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	$	—	$	—	$	—	$	—	$	1,133,069	$	1,133,069	$	—	$	—
Construction and land development		—		—		—		—		179,570		179,570		—		—
Residential		—		—		—		—		464,509		464,509		—		—
Commercial		—		—		—		—		37,925		37,925		—		—
Consumer		—		—		—		—		467		467		—		—
Total Loans	$	—	$	—	$	—	$	—	$	1,815,540	$	1,815,540	$	—	$	—


	December 31, 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	$	—	$	—	$	—	$	—	$	1,118,127	$	1,118,127	$	—	$	—
Construction and land development		—		—		—		—		195,027		195,027		—		—
Residential		—		—		—		—		426,841		426,841		—		—
Commercial		—		—		—		—		44,924		44,924		—		—
Consumer		—		—		—		—		529		529		—		—
Total Loans	$	—	$	—	$	—	$	—	$	1,785,448	$	1,785,448	$	—	$	—

Schedule of credit quality information

The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of September 30, 2023.


	Term Loans by Year of Origination
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
Real Estate Loans - Commercial
Pass	$	56,696	$	303,898	$	205,417	$	122,694	$	97,273	$	342,686	$	3,168	$	1,131,832
Special mention		—		—		—		1,237		—		—		—		1,237
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Real Estate Loans - Commercial	$	56,696	$	303,898	$	205,417	$	123,931	$	97,273	$	342,686	$	3,168	$	1,133,069

Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Loans - Construction and land development
Pass	$	33,136	$	58,071	$	31,471	$	18,087	$	30	$	8,845	$	27,780	$	177,420
Special mention		—		—		—		—		2,150		—		—		2,150
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Real Estate Loans - Construction and land development	$	33,136	$	58,071	$	31,471	$	18,087	$	2,180	$	8,845	$	27,780	$	179,570

Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Loans - Residential
Pass	$	61,683	$	115,508	$	134,133	$	88,589	$	25,147	$	22,213	$	17,236	$	464,509
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Real Estate Loans - Residential	$	61,683	$	115,508	$	134,133	$	88,589	$	25,147	$	22,213	$	17,236	$	464,509

Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Loans
Pass	$	3,425	$	7,354	$	2,146	$	3,384	$	5,245	$	5,198	$	11,173	$	37,925
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial Loans	$	3,425	$	7,354	$	2,146	$	3,384	$	5,245	$	5,198	$	11,173	$	37,925

Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer Loans
Pass	$	399	$	6	$	29	$	—	$	—	$	12	$	21	$	467
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Consumer Loans	$	399	$	6	$	29	$	-	$	—	$	12	$	21	$	467

Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2022.


	December 31, 2022
			Special								Total
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Loss		Loans
Real Estate Loans
Commercial	$	1,116,890	$	1,237	$	—	$	—	$	—	$	1,118,127
Construction and land development		192,877		2,150		—		—		—		195,027
Residential		426,841		—		—		—		—		426,841
Commercial		44,924		—		—		—		—		44,924
Consumer		529		—		—		—		—		529
Total Loans	$	1,782,061	$	3,387	$	—	$	—	$	—	$	1,785,448