LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
|---|
| LOANS AND ALLOWANCE FOR LOAN LOSSES |
|
| Summary of major classifications of loans |
| | | | | | | | | December 31, | (Dollars in thousands) | | 2021 | | 2020 | Construction and development | | $ | 38,857 | | $ | 45,653 | Commercial real estate | | | 520,488 | | | 477,419 | Commercial and industrial | | | 73,072 | | | 137,239 | Residential real estate | | | 1,879,012 | | | 974,445 | Consumer and other | | | 79 | | | 183 | Total loans receivable | | | 2,511,508 | | | 1,634,939 | Unearned income | | | (6,438) | | | (4,595) | Allowance for loan losses | | | (16,952) | | | (10,135) | Loans, net | | $ | 2,488,118 | | $ | 1,620,209 |
|
| 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 impaired loans by portfolio segment |
| | | | | | | | | | | | | | | | | | Unpaid | | Recorded | | Recorded | | | | | | | | | Total | | Investment | | Investment | | Total | | | | (Dollars in thousands) | | Principal | | With No | | With | | Recorded | | Related | December 31, 2021 | | Balance | | Allowance | | Allowance | | Investment | | Allowance | Construction and development | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Commercial real estate | | | 6,395 | | | 5,451 | | | 957 | | | 6,408 | | | 242 | Commercial and industrial | | | 565 | | | 25 | | | 585 | | | 610 | | | 434 | Residential real estate | | | 4,889 | | | 4,889 | | | — | | | 4,889 | | | — | Total | | $ | 11,849 | | $ | 10,365 | | $ | 1,542 | | $ | 11,907 | | $ | 676 |
| | | | | | | | | | | | | | | | | | Unpaid | | Recorded | | Recorded | | | | | | | | | Total | | Investment | | Investment | | Total | | | | (Dollars in thousands) | | Principal | | With No | | With | | Recorded | | Related | December 31, 2020 | | Balance | | Allowance | | Allowance | | Investment | | Allowance | Construction and development | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Commercial real estate | | | 6,245 | | | 3,768 | | | 2,505 | | | 6,273 | | | 444 | Commercial and industrial | | | 322 | | | 232 | | | 94 | | | 326 | | | 56 | Residential real estate | | | 7,309 | | | 7,309 | | | — | | | 7,309 | | | — | Total | | $ | 13,876 | | $ | 11,309 | | $ | 2,599 | | $ | 13,908 | | $ | 500 |
|
| 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 |
|
| Schedule of delinquent amounts by portfolio segment |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Accruing | | Total | | | | | Total | (Dollars in thousands) | | | | | 30-89 Days | | Greater than | | Accruing | | | | | Financing | December 31, 2021 | | Current | | Past Due | | 90 Days | | Past Due | | Nonaccrual | | Receivables | Construction and development | | $ | 38,567 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 38,567 | Commercial real estate | | | 514,179 | | | 752 | | | — | | | 752 | | | 3,717 | | | 518,648 | Commercial and industrial | | | 70,702 | | | 788 | | | 342 | | | 1,130 | | | 152 | | | 71,984 | Residential real estate | | | 1,859,615 | | | 11,287 | | | — | | | 11,287 | | | 4,890 | | | 1,875,792 | Consumer and other | | | 79 | | | — | | | — | | | — | | | — | | | 79 | Total | | $ | 2,483,142 | | $ | 12,827 | | $ | 342 | | $ | 13,169 | | $ | 8,759 | | $ | 2,505,070 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Accruing | | Total | | | | | Total | (Dollars in thousands) | | | | | 30-89 Days | | Greater than | | Accruing | | | | | Financing | December 31, 2020 | | Current | | Past Due | | 90 Days | | Past Due | | Nonaccrual | | Receivables | Construction and development | | $ | 45,497 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 45,497 | Commercial real estate | | | 472,707 | | | — | | | — | | | — | | | 2,860 | | | 475,567 | Commercial and industrial | | | 134,463 | | | 155 | | | — | | | 155 | | | 34 | | | 134,652 | Residential real estate | | | 946,144 | | | 20,992 | | | — | | | 20,992 | | | 7,309 | | | 974,445 | Consumer and other | | | 183 | | | — | | | — | | | — | | | — | | | 183 | Total | | $ | 1,598,994 | | $ | 21,147 | | $ | — | | $ | 21,147 | | $ | 10,203 | | $ | 1,630,344 |
|
| 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 |
|
| Schedule of TDRs classified separately as accrual and non-accrual |
| | | | | | | | | | (Dollars in thousands) | | | | | | | | | | December 31, 2021 | | Accruing | | Nonaccrual | | Total | Commercial real estate | | $ | 2,678 | | $ | 479 | | $ | 3,157 | Commercial and industrial | | | 20 | | | — | | | 20 | Total | | $ | 2,698 | | $ | 479 | | $ | 3,177 |
| | | | | | | | | | (Dollars in thousands) | | | | | | | | | | December 31, 2020 | | Accruing | | Nonaccrual | | Total | Commercial real estate | | $ | 2,870 | | $ | 479 | | $ | 3,349 | Commercial and industrial | | | 21 | | | 1 | | | 22 | Total | | $ | 2,891 | | $ | 480 | | $ | 3,371 |
|
| 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 |
|
| Summary of loans by portfolio segment modified as TDRs and the corresponding recorded investment |
| | | | | | | | | | | | | December 31, 2021 | | December 31, 2020 | (Dollars in thousands) | | Number of | | Recorded | | Number of | | Recorded | Type | | Loans | | Investment | | Loans | | Investment | Commercial real estate | | 4 | | $ | 3,170 | | 5 | | $ | 3,364 | Commercial and industrial | | 1 | | | 20 | | 2 | | | 23 | Total | | 5 | | $ | 3,190 | | 7 | | $ | 3,387 |
|
| 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 |
|