LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2024

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

Loan Portfolio by Class

The following table presents the loan portfolio by class at March 31, 2024 and December 31, 2023.

(Dollars in thousands)
	March 31, 2024		December 31, 2023
Commercial, financial and agricultural	$	69,178	$	65,821
Real estate - commercial		236,442		223,077
Real estate - construction:
1-4 family residential construction		5,002		5,085
Other construction loans		45,025		47,504
Real estate - mortgage		160,439		162,385
Obligations of states and political subdivisions		16,630		17,232
Personal		4,000		4,290
Total	$	536,716	$	525,394

Activity in the Allowance for Loan Losses by Loan Class

The following tables disclose allowance for credit loss activity by loan class for the three months ended March 31, 2024 and March 31, 2023.

					Real estate-				Obligations
	Commercial,				construction		Real estate-		of states
(Dollars in thousands)	financial and		Real estate-		1-4 family		construction		and political		Real estate-
	agricultural		commercial		residential		other		subdivisions		mortgage		Personal		Total
Three Months Ended
March 31, 2024
Allowance for credit losses:
Beginning balance,	$	740	$	2,799	$	104	$	778	$	39	$	1,157	$	60	$	5,677
Provision for credit losses		40		144		1		(30)		18		(50)		(3)		120
Loans charged off		—		—		—		—		—		—		(9)		(9)
Recoveries collected		—		—		—		—		—		1		3		4
Total ending allowance balance	$	780	$	2,943	$	105	$	748	$	57	$	1,108	$	51	$	5,792

					Real estate-				Obligations
	Commercial,				construction		Real estate-		of states
(Dollars in thousands)	financial and		Real estate-		1-4 family		construction		and political		Real estate-
	agricultural		commercial		residential		other		subdivisions		mortgage		Personal		Total
Three Months Ended
March 31, 2023
Allowance for loan losses:
Beginning balance, prior to ASC 326 adoption	$	297	$	1,110	$	69	$	1,077	$	54	$	1,385	$	35	$	4,027
Impact of adopting ASC 326		337		1,204		114		(407)		(9)		(497)		15		757
Initial allowance on loans purchased with credit deterioration				106								248				354
Provision for credit losses		(2)		176		(26)		101		—		(23)		17		243
Loans charged off		—		—		—		—		—		(19)		(7)		(26)
Recoveries collected		—		—		—		—		—		18		1		19
Total ending allowance balance	$	632	$	2,596	$	157	$	771	$	45	$	1,112	$	61	$	5,374

Schedule of collateral dependent loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of March 31, 2024.

(Dollars in thousands)
	Real Estate
Real estate - mortgage	$	122
Total	$	122

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of December 31, 2023.

(Dollars in thousands)
	Real Estate
Real estate - commercial	$	4,877
Real estate - mortgage		57
Total	$	4,934

Nonaccrual Loans by Classes of the Loan Portfolio

The following tables present the amortized cost basis of loans on nonaccrual status, including nonaccrual status loans with no allowance, and loans past due over 89 days still accruing as of March 31, 2024 and December 31, 2023, respectively.

(Dollars in thousands)	Nonaccrual with		Nonaccrual with		Loans Past Due
	No Allowance		an Allowance		Over 89 Days
As of March 31, 2024	for Credit Loss		for Credit Loss		Still Accruing(1)
Commercial, financial and agricultural	$	—	$	90	$	—
Real estate - mortgage		122		—		35
Total	$	122	$	90	$	35

(Dollars in thousands)	Nonaccrual with		Nonaccrual with		Loans Past Due
	No Allowance		an Allowance		Over 89 Days
As of December 31, 2023	for Credit Loss		for Credit Loss		Still Accruing(1)
Commercial, financial and agricultural	$	—	$	18	$	—
Real estate - commercial		4,877		—		—
Real estate - mortgage		57		—		—
Total	$	4,934	$	18	$	—

(1) These loans are guaranteed, or well-secured, and there is an effective means of collection in process.

Loan Portfolio Summarized by the Past Due Status

(Dollars in thousands)					Greater
	30‑59 Days		60‑89 Days		Than 89 Days		Total Past
As of March 31, 2024	Past Due(1)		Past Due		Past Due		Due
Commercial, financial and agricultural	$	8	$	—	$	72	$	80
Real estate - construction:
Other construction loans		3		—		—		3
Real estate - mortgage		398		3		35		436
Personal		4		10		—		14
Total	$	413	$	13	$	107	$	533

(Dollars in thousands)					Greater
	30‑59 Days		60‑89 Days		Than 89 Days		Total Past
As of December 31, 2023	Past Due(1)		Past Due		Past Due		Due
Commercial, financial and agricultural	$	73	$	—	$	—	$	73
Real estate - commercial		117		—		—		117
Real estate - mortgage		332		90		4		426
Personal		9		—		—		9
Total	$	531	$	90	$	4	$	625

(1) Loans are considered past due when the borrower is in arrears on two or more monthly payments.

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of March 31, 2024 and December 31, 2023, respectively.

(Dollars in thousands)			Special
As of March 31, 2024	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	64,843	$	4,245	$	18	$	72	$	69,178
Real estate - commercial		221,899		13,624		919		—		236,442
Real estate - construction:
1-4 family residential construction		4,999		3		—		—		5,002
Other construction loans		40,156		4,869		—		—		45,025
Real estate - mortgage		159,549		212		678		—		160,439
Obligations of states and political subdivisions		16,630		—		—		—		16,630
Personal		4,000		—		—		—		4,000
Total	$	512,076	$	22,953	$	1,615	$	72	$	536,716

(Dollars in thousands)			Special
As of December 31, 2023	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	62,952	$	2,851	$	18	$	—	$	65,821
Real estate - commercial		203,590		13,682		5,805		—		223,077
Real estate - construction:
1-4 family residential construction		5,085		—		—		—		5,085
Other construction loans		42,845		4,659		—		—		47,504
Real estate - mortgage		162,111		218		56		—		162,385
Obligations of states and political subdivisions		17,232		—		—		—		17,232
Personal		4,290		—		—		—		4,290
Total	$	498,105	$	21,410		5,879	$	—	$	525,394

Based on the most recent analysis performed, the amortized cost basis by risk category of loans by class of loan and by origination year as of March 31, 2024 is as follows:

													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial, financial and agricultural:
Risk Rating
Pass	$	1,210		10,704		4,735		11,185		4,567		4,310		28,132	$	—	$	64,843
Special Mention		—		68		386		—		—		—		3,791		—		4,245
Substandard		—		—		—		—		—		18		—		—		18
Doubtful		—		—		—		—		—		72		—		—		72
Total commercial, financial and agricultural loans	$	1,210	$	10,772	$	5,121	$	11,185	$	4,567	$	4,400	$	31,923	$	—	$	69,178
Commercial, financial and agricultural loans:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate - commercial:
Risk Rating
Pass	$	15,940		36,572		53,395		27,845		15,691		69,653		2,788	$	15	$	221,899
Special Mention		—		—		4,416		—		3,915		5,098		195		—		13,624
Substandard		—		—		—		—		—		919		—		—		919
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - commercial loans	$	15,940	$	36,572	$	57,811	$	27,845	$	19,606	$	75,670	$	2,983	$	15	$	236,442
Real estate - commercial:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate - construction - 1-4 family residential:
Risk Rating
Pass	$	282		1,305		3,412		—		—		—		—		—	$	4,999
Special Mention		—		—		3		—		—		—		—		—		3
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - construction - 1-4 family residential loans	$	282	$	1,305	$	3,415	$	—	$	—	$	—	$	—	$	—	$	5,002
Real estate - construction - 1-4 family residential:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate - construction - other:
Risk Rating
Pass	$	64		5,603		7,792		13,907		2,332		3,113		7,203		142	$	40,156
Special Mention		—		—		—		—		4,641		228						4,869
Substandard		—		—		—		—		—								—
Doubtful		—		—		—		—		—								—
Total real estate - construction - other loans	$	64	$	5,603	$	7,792	$	13,907	$	6,973	$	3,341	$	7,203	$	142	$	45,025
Real estate - construction - other:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of March 31, 2024 (cont.)	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Real estate - mortgage:
Risk Rating
Pass	$	2,660		26,247		42,317		18,410		14,050		47,724		7,859		282	$	159,549
Special Mention		—		—		—		—		—		212		—		—		212
Substandard		—		—		—		—		—		678		—		—		678
Doubtful		—		—		—		—		—				—		—		—
Total real estate - mortgage loans	$	2,660	$	26,247	$	42,317	$	18,410	$	14,050	$	48,614	$	7,859	$	282	$	160,439
Real estate - mortgage:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of states and political subdivisions:
Risk Rating
Pass	$	1,226		643		3,866		2,283		4,926		3,686		—		—	$	16,630
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Obligations of states and political subdivisions	$	1,226	$	643	$	3,866	$	2,283	$	4,926	$	3,686	$	—	$	—	$	16,630
Obligations of states and political subdivisions:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Personal:
Risk Rating
Pass	$	354		2,044		906		286		60		241		87		22	$	4,000
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total personal loans	$	354	$	2,044	$	906	$	286	$	60	$	241	$	87	$	22	$	4,000
Personal:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	(9)	$	—	$	—	$	(9)

The amortized cost basis by risk category of loans by class of loan and by origination year as of December 31, 2023 is as follows:

													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Commercial, financial and agricultural:
Risk Rating
Pass	$	10,750	$	5,123	$	11,793	$	4,971	$	3,903	$	830	$	25,582	$	—	$	62,952
Special Mention		70		414		—		—		72		—		2,295		—		2,851
Substandard		—		—		—		—		—		18		—		—		18
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial, financial and agricultural loans	$	10,820	$	5,537	$	11,793	$	4,971	$	3,975	$	848	$	27,877	$	—	$	65,821
Commercial, financial and agricultural loans:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate - commercial:
Risk Rating
Pass	$	36,375	$	53,927	$	23,561	$	15,952	$	17,606	$	53,465	$	2,688	$	16	$	203,590
Special Mention		—		4,469		—		3,894		211		4,909		199		—		13,682
Substandard		—		—		—		4,877		—		928		—		—		5,805
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - commercial loans	$	36,375	$	58,396	$	23,561	$	24,723	$	17,817	$	59,302	$	2,887	$	16	$	223,077
Real estate - commercial:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate - construction - 1-4 family residential:
Risk Rating
Pass	$	1,674	$	3,411	$	—	$	—	$	—	$	—	$	—	$	—	$	5,085
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - construction - 1-4 family residential loans	$	1,674	$	3,411	$	—	$	—	$	—	$	—	$	—	$	—	$	5,085
Real estate - construction - 1-4 family residential:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate - construction - other:
Risk Rating
Pass	$	5,254	$	7,405	$	17,928	$	2,354	$	276	$	3,088	$	6,390	$	150	$	42,845
Special Mention		—		—		2		4,657		—		—		—		—		4,659
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - construction - other loans	$	5,254	$	7,405	$	17,930	$	7,011	$	276	$	3,088	$	6,390	$	150	$	47,504
Real estate - construction - other:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of December 31, 2023 (cont.)	2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Real estate - mortgage:
Risk Rating
Pass	$	27,062	$	43,005	$	19,173	$	14,577	$	5,524	$	44,359	$	8,084	$	327	$	162,111
Special Mention		—		—		—		—		—		218		—		—		218
Substandard		—		—		—		—		—		56		—		—		56
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - mortgage loans	$	27,062	$	43,005	$	19,173	$	14,577	$	5,524	$	44,633	$	8,084	$	327	$	162,385
Real estate - mortgage:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	(19)	$	—	$	—	$	(19)
Obligations of states and political subdivisions:
Risk Rating
Pass	$	350	$	3,876	$	2,413	$	5,094	$	12	$	5,486	$	1	$	—	$	17,232
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Obligations of states and political subdivisions	$	350	$	3,876	$	2,413	$	5,094	$	12	$	5,486	$	1	$	—	$	17,232
Obligations of states and political subdivisions:
Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Personal:
Risk Rating
Pass	$	2,385	$	1,093	$	362	$	87	$	63	$	187	$	91	$	22	$	4,290
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total personal loans	$	2,385	$	1,093	$	362	$	87	$	63	$	187	$	91	$	22	$	4,290
Personal:
Current period gross write offs	$	(4)	$	(2)	$	—	$	(4)	$	—	$	(18)	$	—	$	—	$	(28)