Schedule of allowance for loan losses by portfolio segment


	Year Ended December 31, 2021
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	178	$	5,161	$	438	$	4,350	$	8	$	—	$	10,135
Charge-offs		—		(67)		(64)		—		—		—		(131)
Recoveries		—		12		—		—		7		—		19
Provision		(78)		(960)		4,615		3,367		(15)		—		6,929
Ending balance	$	100	$	4,146	$	4,989	$	7,717	$	—	$	—	$	16,952


	Year Ended December 31, 2020
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	131	$	2,320	$	448	$	3,457	$	91	$	392	$	6,839
Charge-offs		—		(109)		(51)		—		(97)		—		(257)
Recoveries		—		10		25		—		51		—		86
Provision		47		2,940		16		893		(37)		(392)		3,467
Ending balance	$	178	$	5,161	$	438	$	4,350	$	8	$	—	$	10,135


	Year Ended December 31, 2019
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	235	$	2,601	$	380	$	3,042	$	387	$	—	$	6,645
Charge-offs		—		(237)		(14)		—		(525)		—		(776)
Recoveries		—		752		—		—		218		—		970
Provision		(104)		(796)		82		415		11		392		—
Ending balance	$	131	$	2,320	$	448	$	3,457	$	91	$	392	$	6,839

The following tables present, by portfolio segment, the balance in the allowance for loan losses disaggregated on the basis of the Company’s impairment measurement method and the related unpaid principal balance in loans as of December 31, 2021 and 2020.


	December 31, 2021
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	242	$	434	$	—	$	—	$	—	$	676
Collectively evaluated for impairment		100		3,904		4,555		7,717		—		—		16,276
Acquired with deteriorated credit quality		—		—		—		—		—		—		—
Total ending allowance balance	$	100	$	4,146	$	4,989	$	7,717	$	—	$	—	$	16,952
Loans:
Individually evaluated for impairment	$	—	$	6,395	$	565	$	4,889	$	—	$	—	$	11,849
Collectively evaluated for impairment		38,567		512,253		71,419		1,870,903		—		79		2,493,221
Acquired with deteriorated credit quality		—		—		—		—		—		—		—
Total ending loans balance	$	38,567	$	518,648	$	71,984	$	1,875,792	$	—	$	79	$	2,505,070


	December 31, 2020
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	444	$	56	$	—	$	—	$	—	$	500
Collectively evaluated for impairment		178		4,717		382		4,350		—		—		9,627
Acquired with deteriorated credit quality		—		—		—		—		8		—		8
Total ending allowance balance	$	178	$	5,161	$	438	$	4,350	$	8	$	—	$	10,135
Loans:
Individually evaluated for impairment	$	—	$	6,245	$	322	$	7,309	$	—	$	—	$	13,876
Collectively evaluated for impairment		45,497		469,322		134,330		967,136		141		—		1,616,426
Acquired with deteriorated credit quality		—		—		—		—		42		—		42
Total ending loans balance	$	45,497	$	475,567	$	134,652	$	974,445	$	183	$	—	$	1,630,344

Summary of average recorded investment in impaired loans


	Years Ended December 31,
	2021				2020				2019
	Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income
(Dollars in thousands)	Investment		Recognized		Investment		Recognized		Investment		Recognized
Construction and development	$	—	$	—	$	105	$	—	$	1,360	$	6
Commercial real estate		5,642		245		8,325		390		8,057		629
Commercial and industrial		366		12		427		29		966		33
Residential real estate		5,821		53		7,272		150		6,278		104
Total	$	11,829	$	310	$	16,129	$	569	$	16,661	$	772

Summary of purchased loans by risk rating


	Construction
(Dollars in thousands)	and		Commercial		Commercial		Residential		Consumer
December 31, 2021	Development		Real Estate		and Industrial		Real Estate		and Other		Total
Rating:
Pass	$	38,567	$	499,135	$	64,226	$	1,870,902	$	79	$	2,472,909
Special Mention⁽¹⁾		—		13,884		7,053		—		—		20,937
Substandard		—		5,629		705		4,890		—		11,224
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	38,567	$	518,648	$	71,984	$	1,875,792	$	79	$	2,505,070

(1)

All of the loans classified as Special Mention at December 31, 2021 have been heavily impacted by the ongoing COVID pandemic. While all of these loans are performing, we elected to classify as Special Mention as an abundance of caution as we closely monitor the performance of the underlying businesses.


	Construction
(Dollars in thousands)	and		Commercial		Commercial		Residential		Consumer
December 31, 2020	Development		Real Estate		and Industrial		Real Estate		and Other		Total
Rating:
Pass	$	45,497	$	469,968	$	133,852	$	967,136	$	183	$	1,616,636
Special Mention		—		—		—		—		—		—
Substandard		—		5,599		800		7,309		—		13,708
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	45,497	$	475,567	$	134,652	$	974,445	$	183	$	1,630,344

Summary of the types of concessions for loans classified as troubled debt restructurings


(Dollars in thousands)	December 31,		December 31,
Type of Concession	2021		2020
Deferral of payments	$	488	$	505
Extension of maturity date		2,689		2,866
Total TDR loans	$	3,177	$	3,371

Schedule of aggregate loan transactions with related parties


	December 31,
(Dollars in thousands)	2021		2020
Beginning balance	$	8,641	$	6,382
New loans and principal advances		—		2,902
Repayments		(314)		(643)
Transactions due to changes in related parties		—		—
Ending balance	$	8,327	$	8,641