Note 4 - Loans Receivable

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. Loans Receivable

The following table sets forth the Company’s gross loans by major categories as of December 31, 2021 and 2020:

(dollars in thousands)	December 31, 2021			December 31, 2020
Commercial real estate	$	780,311		$	705,748
Construction and land development		216,008			142,821
Commercial and industrial		252,376			200,188
Owner occupied real estate		526,570			475,206
Consumer and other		83,487			102,368
Residential mortgage		536,332			395,174
Paycheck protection program		119,039			636,637
Total loans receivable		2,514,123			2,658,142
Deferred costs (fees)		(6,758	)		(12,800	)
Allowance for loan losses		(18,964	)		(12,975	)
Net loans receivable	$	2,488,401		$	2,632,367

The Company disaggregates its loan portfolio into groups of loans with similar risk characteristics for purposes of estimating the allowance for loan losses. The Company’s loan groups include commercial real estate, construction and land development, commercial and industrial, owner occupied real estate, consumer, residential mortgages, and PPP loans. PPP loans are fully guaranteed by the U.S. Government and as such have no allowance associated with them. The loan groups are also considered classes for purposes of monitoring and assessing credit quality based on certain risk characteristics.

Included in loans are loans due from directors and other related parties of $18.9 million at December 31, 2021, an increase of $2.2 million, compared to $16.7 million at December 31, 2020, resulting from $4.2 million in additions and ($2.0) in repayments.  The December 31, 2020 disclosure has been updated to include business affiliates of directors resulting in an increase to the previously reported $14.9 million balance of related party loans at December 31, 2020.  The Board of Directors approves loans to individual directors and other related parties to conform to our underwriting policies.