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Loans and Allowance for Loan Losses (Tables)
3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Loans by Portfolio Segment
Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):    
March 31, 2021December 31, 2020
Real estate loans:  
Construction$605,677 $581,941 
1-4 family residential700,430 719,952 
Commercial1,348,551 1,295,746 
Commercial loans564,745 557,122 
Municipal loans406,377 409,028 
Loans to individuals90,818 93,990 
Total loans3,716,598 3,657,779 
Less: Allowance for loan losses41,454 49,006 
Net loans$3,675,144 $3,608,773 
Summary of loans by credit quality indicators and origination year
The following tables set forth the amortized cost basis by class of financing receivable and credit quality indicator for the periods presented (in thousands):
March 31, 2021Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20212020201920182017Prior
Construction real estate:
Pass$26,255 $160,527 $182,708 $75,258 $33,261 $8,877 $118,479 $605,365 
Pass watch— — — — — 22 — 22 
Special mention— — — — — — — — 
Substandard— — — — — 54 — 54 
Doubtful— — — 59 — 177 — 236 
Total construction real estate$26,255 $160,527 $182,708 $75,317 $33,261 $9,130 $118,479 $605,677 
1-4 family residential real estate:
Pass$39,457 $151,235 $104,065 $63,864 $46,692 $283,115 $2,506 $690,934 
Pass watch— — — — — 823 — 823 
Special mention— — — — — 65 — 65 
Substandard10 1,684 — — 943 5,289 94 8,020 
Doubtful— 14 — 135 34 405 — 588 
Total 1-4 family residential real estate$39,467 $152,933 $104,065 $63,999 $47,669 $289,697 $2,600 $700,430 
Commercial real estate:
Pass$138,805 $236,874 $285,638 $110,462 $181,077 $247,524 $6,857 $1,207,237 
Pass watch— — — 23,272 37,938 5,472 — 66,682 
Special mention24,142 577 8,883 7,002 138 12,245 — 52,987 
Substandard2,105 4,631 — 1,956 63 12,756 — 21,511 
Doubtful— — — — — 134 — 134 
Total commercial real estate$165,052 $242,082 $294,521 $142,692 $219,216 $278,131 $6,857 $1,348,551 
Commercial loans:
Pass$108,205 $221,819 $41,605 $17,819 $6,368 $8,280 $146,516 $550,612 
Pass watch43 2,313 1,199 2,004 1,487 — 378 7,424 
Special mention280 — 718 416 36 385 320 2,155 
Substandard185 454 989 481 — 1,486 3,597 
Doubtful— 382 95 449 31 — — 957 
Total commercial loans$108,713 $224,968 $44,606 $21,169 $7,924 $8,665 $148,700 $564,745 
Municipal loans:
Pass$14,748 $69,822 $66,741 $32,166 $59,756 $163,144 $— $406,377 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$14,748 $69,822 $66,741 $32,166 $59,756 $163,144 $— $406,377 
Loans to individuals:
Pass$12,798 $39,592 $20,715 $8,079 $3,672 $2,079 $3,521 $90,456 
Pass watch— — — — — — — — 
Special mention— — — 47 — — 51 
Substandard— 19 34 22 27 10 — 112 
Doubtful— 67 — 44 83 — 199 
Total loans to individuals$12,798 $39,678 $20,749 $8,153 $3,743 $2,172 $3,525 $90,818 
Total loans$367,033 $890,010 $713,390 $343,496 $371,569 $750,939 $280,161 $3,716,598 
December 31, 2020Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20202019201820172016Prior
Construction real estate:
Pass$155,693 $180,536 $76,090 $55,636 $3,191 $8,297 $101,793 $581,236 
Pass watch— — — — 23 — — 23 
Special mention— — — — — — — — 
Substandard— 382 62 — — 58 — 502 
Doubtful— — — — — 180 — 180 
Total construction real estate$155,693 $180,918 $76,152 $55,636 $3,214 $8,535 $101,793 $581,941 
1-4 family residential real estate:
Pass$154,003 $114,063 $70,621 $55,557 $57,680 $255,003 $2,833 $709,760 
Pass watch— — — — 267 564 — 831 
Special mention— — — — — 10 — 10 
Substandard1,473 — 135 427 1,588 5,134 96 8,853 
Doubtful— — — 36 103 359 — 498 
Total 1-4 family residential real estate$155,476 $114,063 $70,756 $56,020 $59,638 $261,070 $2,929 $719,952 
Commercial real estate:
Pass$270,087 $307,161 $143,177 $162,180 $98,828 $179,919 $6,957 $1,168,309 
Pass watch— — 3,153 40,125 1,696 2,582 — 47,556 
Special mention4,555 33,020 7,041 140 4,531 7,850 — 57,137 
Substandard7,542 — 2,097 65 704 12,282 — 22,690 
Doubtful— — — — — 54 — 54 
Total commercial real estate$282,184 $340,181 $155,468 $202,510 $105,759 $202,687 $6,957 $1,295,746 
Commercial loans:
Pass$313,688 $47,446 $20,386 $7,505 $3,392 $6,142 $140,018 $538,577 
Pass watch2,599 1,318 2,410 1,981 — — 370 8,678 
Special mention304 809 433 39 286 265 455 2,591 
Substandard405 1,081 473 — — 4,417 6,383 
Doubtful310 53 475 54 — — 893 
Total commercial loans$317,306 $50,707 $24,177 $9,586 $3,679 $6,407 $145,260 $557,122 
Municipal loans:
Pass$72,542 $68,132 $33,735 $61,170 $25,387 $148,062 $— $409,028 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$72,542 $68,132 $33,735 $61,170 $25,387 $148,062 $— $409,028 
Loans to individuals:
Pass$46,722 $25,302 $10,132 $4,716 $1,867 $917 $3,900 $93,556 
Pass watch— — — — — — — — 
Special mention— — 51 — — — 55 
Substandard35 28 30 11 120 
Doubtful73 20 55 81 24 — 259 
Total loans to individuals$46,801 $25,357 $10,217 $4,801 $1,957 $952 $3,905 $93,990 
Total loans$1,030,002 $779,358 $370,505 $389,723 $199,634 $627,713 $260,844 $3,657,779 
Aging of past due loans by class of loan
The following tables present the aging of the amortized cost basis in past due loans by class of loans (in thousands):
 March 31, 2021
 
30-59 Days
Past Due
60-89 Days
Past Due
Greater than 90 Days Past Due
Total Past
Due
CurrentTotal
Real estate loans:     
Construction$1,130 $— $— $1,130 $604,547 $605,677 
1-4 family residential5,321 614 486 6,421 694,009 700,430 
Commercial4,676 — — 4,676 1,343,875 1,348,551 
Commercial loans1,507 245 641 2,393 562,352 564,745 
Municipal loans— — — — 406,377 406,377 
Loans to individuals418 30 451 90,367 90,818 
Total$13,052 $889 $1,130 $15,071 $3,701,527 $3,716,598 
December 31, 2020
30-59 Days Past Due60-89 Days Past DueGreater than 90 Days
Past Due
Total Past
Due
CurrentTotal
Real estate loans:
Construction$95 $14 $444 $553 $581,388 $581,941 
1-4 family residential7,872 2,469 2,830 13,171 706,781 719,952 
Commercial467 315 86 868 1,294,878 1,295,746 
Commercial loans1,423 4,516 323 6,262 550,860 557,122 
Municipal loans64 — — 64 408,964 409,028 
Loans to individuals519 123 27 669 93,321 93,990 
Total$10,440 $7,437 $3,710 $21,587 $3,636,192 $3,657,779 
Nonperforming assets by asset class
The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands):
 March 31, 2021December 31, 2020
Nonaccrual loans:
Real estate loans:
Construction$248 $640 
1-4 family residential1,929 3,922 
Commercial1,229 1,269 
Commercial loans1,682 1,592 
Loans to individuals226 291 
Total nonaccrual loans (1)
5,314 7,714 
Accruing loans past due more than 90 days— — 
TDR loans9,641 9,646 
OREO412 106 
Repossessed assets— 14 
Total nonperforming assets$15,367 $17,480 

(1)    Includes $889,000 and $976,000 of restructured loans as of March 31, 2021 and December 31, 2020, respectively.
Troubled debt restructurings
The following tables set forth the recorded balance of loans considered to be TDRs that were restructured and the type of concession by class of loans during the periods presented (dollars in thousands):
Three Months Ended March 31, 2021
 
Extend Amortization
 Period
Interest Rate ReductionsCombination Total ModificationsNumber of Loans
Real estate loans:  
1-4 family residential$— $— $130 $130 
Commercial loans— — 18 18 
Total$— $— $148 $148 
 Three Months Ended March 31, 2020
 
Extend Amortization
 Period
Interest Rate ReductionsCombinationTotal ModificationsNumber of Loans
Real estate loans:  
Commercial$— $— $59 $59 
Commercial loans— — 
Total$— $— $62 $62 
Allowance for loan losses activity by portfolio segment
The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands):
 Three Months Ended March 31, 2021
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$6,490 $2,270 $35,709 $4,107 $46 $384 $49,006 
Loans charged-off— (73)— (319)— (403)(795)
Recoveries of loans charged-off55 — 282 — 284 622 
Net loans (charged-off) recovered(18)— (37)— (119)(173)
Provision for (reversal of) loan losses1,710 256 (8,473)(962)— 90 (7,379)
Balance at end of period$8,201 $2,508 $27,236 $3,108 $46 $355 $41,454 
 Three Months Ended March 31, 2020
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,539 $3,833 $9,572 $6,351 $570 $932 $24,797 
Impact of CECL adoption - cumulative effect adjustment2,968 (1,447)7,730 (3,532)(522)(125)5,072 
Impact of CECL adoption - purchased loans with credit deterioration(15)(6)333 (22)— (59)231 
Loans charged-off(33)(54)(21)(296)— (591)(995)
Recoveries of loans charged-off11 69 74 — 293 451 
Net loans (charged-off) recovered(22)(50)48 (222)— (298)(544)
Provision for (reversal of) loan losses(1)
3,184 310 18,437 1,944 (1)208 24,082 
Balance at end of period$9,654 $2,640 $36,120 $4,519 $47 $658 $53,638 

(1)    The increase in the provision for credit losses during 2020 was primarily due to the economic impact of COVID-19 on macroeconomic factors used in the CECL model.