Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of Loans by Class

	December 31,
	2023		2022
Real estate:
Residential real estate		412,063		437,446
Commercial real estate		1,328,224		1,311,158
Other construction/land		6,256		18,412
Farmland		67,276		113,394
Total real estate		1,813,819		1,880,410
Other commercial		156,272		102,967
Mortgage warehouse lines		116,000		65,439
Consumer loans		3,984		4,124
Subtotal		2,090,075		2,052,940
Plus (less) net deferred loan fees and costs		309		(123)
Allowance for credit losses on loans		(23,500)		(23,060)
Net loans	$	2,066,884	$	2,029,757

Schedule of Amortized Cost Basis of Nonaccrual Loans

The following tables present the amortized cost basis of nonaccrual loans, according to loan class, with and without individually evaluated reserves as of December 31, 2023 and 2022 (dollars in thousands):

	December 31, 2023
	Nonaccrual Loans
	With no allowance for credit loss		With an allowance for credit loss		Total		Loans Past Due 90+ Accruing
Real estate:
Residential real estate		414		—		414		—
Commercial real estate		—		7,457		7,457		—
Farmland		—		—		—		—
Total real estate		414		7,457		7,871		—
Other commercial		114		—		114		14
Consumer loans		—		—		—		—
Total	$	528	$	7,457	$	7,985	$	14

	December 31, 2022
	Nonaccrual Loans
	With no allowance for credit loss		With an allowance for credit loss		Total		Loans Past Due 90+ Accruing
Real estate:
Residential real estate		688		—		688		—
Farmland		15,812		—		15,812		—
Total real estate		16,500		—		16,500		—
Other commercial		2,909		163		3,072		940
Consumer loans		—		7		7		—
Total	$	19,409	$	170	$	19,579	$	940

Schedule of Amortized Cost Basis of Collateral-Dependent Loans by Class

The following tables present the amortized cost basis of collateral-dependent loans by class as of December 31, 2022 and 2023 (dollars in thousands):

	December 31, 2023
	Amortized Cost		Individual Reserves
Real estate:
Residential real estate		414		—
Commercial real estate		7,457		1,600
Other construction/land	$	—	$	—
Farmland		—		—
Total real estate		7,871		1,600
Other commercial		114		—
Mortgage warehouse lines		—		—
Consumer loans		—		—
Total	$	7,985	$	1,600

	December 31, 2022
	Amortized Cost		Individual Reserves
Real estate:
Residential real estate		688		—
Commercial real estate		—		—
Other construction/land		—		—
Farmland		15,812		—
Total real estate		16,500		—
Other commercial		3,043		39
Mortgage warehouse lines		—		—
Consumer loans		—		—
Total	$	19,543	$	39

Schedule of Aging of the Amortized Cost Basis in Past-Due Loans

The following tables present the aging of the amortized cost basis in past-due loans, according to class, as of December 31, 2023 and 2022 (dollars in thousands):

	December 31, 2023
	30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90+ Days		Total Past Due		Loans not Past Due		Total Loans
Real estate:
Residential real estate		1,768		—		—		1,768		411,494		413,262
Commercial real estate		—		—		—		—		1,325,494		1,325,494
Other construction/land	$	—	$	—	$	—	$	—	$	6,268	$	6,268
Farmland		—		—		—		—		67,510		67,510
Total real estate		1,768		—		—		1,768		1,810,766		1,812,534
Other commercial		158		171		14		343		157,417		157,760
Mortgage warehouse lines		—		—		—		—		116,000		116,000
Consumer loans		47		—		—		47		4,043		4,090
Total loans	$	1,973	$	171	$	14	$	2,158	$	2,088,226	$	2,090,384

	December 31, 2022
	30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90+ Days		Total Past Due		Loans not Past Due		Total Loans
Real estate:
Residential real estate	$	1,294	$	87	$	179	$	1,560	$	437,171	$	438,731
Commercial real estate		—		—		—		—		1,308,328		1,308,328
Other construction/land		—		—		—		—		18,358		18,358
Farmland		522		97		15,393		16,012		97,582		113,594
Total real estate		1,816		184		15,572		17,572		1,861,439		1,879,011
Other commercial		19		134		3,718		3,871		100,264		104,135
Mortgage warehouse lines		—		—		—		—		65,439		65,439
Consumer loans		15		—		—		15		4,217		4,232
Total loans	$	1,850	$	318	$	19,290	$	21,458	$	2,031,359	$	2,052,817

Schedule of Amortized Cost Basis of Each Class of Financing Receivable

		December 31, 2023
	Principal Forgiveness		Term Extension		Combination Term Extension Interest Rate Reduction		Total Class of Financing Receivable
Real estate:
Residential real estate	$	—	$	—	$	26		0.01%
Commercial real estate		—		—		148		0.01%
Total real estate		—		—		174		0.01%
Other commercial		—		277		—		0.18%
Consumer loans		—		25		—		0.61%
Total	$	—	$	302	$	174		0.02%

Schedule of Financial Effect of Loan Modifications

		December 31, 2023
		Principal Forgiveness	Weighted-Average Interest Rate Reduction	Weighted-Average Term Extension (years)
Real estate:
Residential real estate	$	—	1.25%	14.30
Commercial real estate	$	—	5.31%	15.67
Other commercial	$	—	—	4.76
Consumer loans	$	—	—	7.11

Troubled Debt Restructurings, by Type of Loan Modification

Troubled Debt Restructurings, by Type of Loan Modification

(dollars in thousands)

December 31, 2021	Rate		Term		Interest Only		Rate & Term		Term & Interest
	Modification		Modification		Modification		Modification		Modification		Total
Troubled debt restructurings
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—		—
Equity lines		—		—		—		—		—		—
Multi-family residential		—		1,000		—		83		—		1,083
Commercial real estate owner occupied		—		—		—		—		—		—
Commercial real estate non-owner occupied		—		136		—		—		—		136
Farmland		—		—		—		—		—		—
Total real estate loans		—		1,136		—		83		—		1,219
Agricultural		—		118		—		—		—		118
Commercial and industrial		—		185		—		—		—		185
Consumer loans		—		44		—		—		23		67
Small Business Administration Loans		—		—		—		—		—		—
Total	$	—	$	1,483	$	—	$	83	$	23	$	1,589

Troubled Debt Restructurings

(dollars in thousand)

Schedule of Amortized Cost of Loans by Credit Quality Classification in Addition to Loan Vintage

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
		2023		2022		2021		2020		2019		Prior	Revolving Loans Amortized Cost		Revolving Loans Converted to Term Loans		Total Loans
Residential real estate
Pass	$	-	$	104,141	$	228,849	$	7,611	$	1,979	$	50,295	$	12,797	$	2,302	$	407,974
Special mention		-		-		1,241		-		-		2,942		20		284		4,487
Substandard		-		-		-		-		-		494		115		192		801
Subtotal		-		104,141		230,090		7,611		1,979		53,731		12,932		2,778		413,262
Commercial real estate
Pass		112,254		275,626		58,310		475,353		51,100		251,163		22,929		-		1,246,735
Special mention		148		-		-		39,654		3,010		8,489		-		-		51,301
Substandard		-		-		-		21,872		-		5,586		-		-		27,458
Subtotal		112,402		275,626		58,310		536,879		54,110		265,238		22,929		-		1,325,494
Other construction/land
Pass		352		-		-		3,646		638		1,632		-		-		6,268
Substandard		-		-		-		-		-		-		-		-		-
Subtotal		352		-		-		3,646		638		1,632		-		-		6,268
Farmland
Pass		6,731		11,645		11,793		2,650		1,652		11,608		2,750		394		49,223
Special mention		-		-		-		840		-		10,471		-		-		11,311
Substandard		-		-		-		-		-		6,976		-		-		6,976
Subtotal		6,731		11,645		11,793		3,490		1,652		29,055		2,750		394		67,510
Other commercial
Pass		18,319		6,501		2,666		6,622		4,534		9,354		101,163		1,171		150,330
Special mention		-		-		273		2,783		-		128		143		3,748		7,075
Substandard		-		-		55		-		-		-		208		92		355
Subtotal		18,319		6,501		2,994		9,405		4,534		9,482		101,514		5,011		157,760
Mortgage warehouse lines
Pass		-		-		-		-		-		-		116,000		-		116,000
Subtotal		-		-		-		-		-		-		116,000		-		116,000
Consumer loans
Pass		1,366		229		102		82		67		177		1,949		-		3,972
Special mention		-		-		-		15		-		35		13		-		63
Substandard		55		-		-		-		-		-		-		-		55
Subtotal		1,421		229		102		97		67		212		1,962		-		4,090
Total	$	139,225	$	398,142	$	303,289	$	561,128	$	62,980	$	359,350	$	258,087	$	8,183	$	2,090,384
Gross charge-offs		2,145		45		250		2,266		81		1,345		489				6,621

	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term Loans		Total Loans
Residential real estate
Pass	$	107,744	$	239,044	$	7,814	$	2,066	$	10,723	$	49,282	$	15,970	$	1,825	$	434,468
Special mention		-		-		-		-		89		1,584		36		970		2,679
Substandard		-		-		-		-		31		1,201		-		352		1,584
Subtotal		107,744		239,044		7,814		2,066		10,843		52,067		16,006		3,147		438,731
Commercial real estate
Pass		276,728		62,764		474,494		56,419		82,595		221,447		22,158		-		1,196,605
Special mention		296		-		73,002		3,068		-		7,299		-		-		83,665
Substandard		-		-		14,733		-		7,144		6,181		-		-		28,058
Subtotal		277,024		62,764		562,229		59,487		89,739		234,927		22,158		-		1,308,328
Other construction/land
Pass		-		-		14,896		734		955		1,010		693		-		18,288
Substandard		-		-		70		-		-		-		-		-		70
Subtotal		-		-		14,966		734		955		1,010		693		-		18,358
Farmland
Pass		30,346		12,941		4,504		1,819		9,418		24,175		3,976		420		87,599
Special mention		-		-		-		-		7,045		3,042		-		-		10,087
Substandard		-		-		-		-		3,417		12,491		-		-		15,908
Subtotal		30,346		12,941		4,504		1,819		19,880		39,708		3,976		420		113,594
Other commercial
Pass		7,478		6,350		7,913		6,028		5,178		10,579		47,998		167		91,691
Special mention		-		129		3,067		44		-		1,616		3,773		660		9,289
Substandard		1		2,798		28		-		28		133		-		167		3,155
Subtotal		7,479		9,277		11,008		6,072		5,206		12,328		51,771		994		104,135
Mortgage warehouse lines
Pass		-		-		-		-		-		-		65,439		-		65,439
Subtotal		-		-		-		-		-		-		65,439		-		65,439
Consumer loans
Pass		1,162		203		138		127		4		375		2,148		-		4,157
Special mention		5		-		35		16		-		-		11		-		67
Substandard		8		-		-		-		-		-		-		-		8
Subtotal		1,175		203		173		143		4		375		2,159		-		4,232
Total	$	731,138	$	399,934	$	1,182,393	$	132,361	$	237,201	$	616,060	$	189,029	$	4,981	$	2,052,817

Schedule of Activity in Allowance for Credit Losses by Portfolio Segment

The following table presents the activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2023 and 2022 (dollars in thousands):

	1-4 Family Real Estate		Commercial Real Estate		Farmland & Agricultural Production		Commercial & Industrial		Mortgage Warehouse		Consumer		Total
Allowance for credit losses:
Balance, December 31, 2021	$	1,909	$	9,052	$	1,202	$	1,060	$	512	$	521	$	14,256
Impact of adopting ASC 326		611		9,628		(480)		358		(421)		(242)		9,454
Charge-offs		—		(1,911)		(9,205)		(322)		—		(1,396)		(12,834)
Recoveries		99		260		—		163		—		764		1,286
Provision for credit losses		632		703		8,941		(26)		(19)		667		10,898
Balance, December 31, 2022	$	3,251	$	17,732	$	458	$	1,233	$	72	$	314	$	23,060
Charge-offs		(30)		(2,266)		(1,277)		(1,320)		—		(1,728)		(6,621)
Recoveries		205		17		1,370		425		—		986		3,003
Provision for credit losses		(699)		3,071		35		810		102		739		4,058
Balance, December 31, 2023	$	2,727	$	18,554	$	586	$	1,148	$	174	$	311	$	23,500

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods

Troubled Debt Restructurings, by Type of Loan Modification

(dollars in thousands)

December 31, 2021	Rate		Term		Interest Only		Rate & Term		Term & Interest
	Modification		Modification		Modification		Modification		Modification		Total
Troubled debt restructurings
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—		—
Equity lines		—		—		—		—		—		—
Multi-family residential		—		1,000		—		83		—		1,083
Commercial real estate owner occupied		—		—		—		—		—		—
Commercial real estate non-owner occupied		—		136		—		—		—		136
Farmland		—		—		—		—		—		—
Total real estate loans		—		1,136		—		83		—		1,219
Agricultural		—		118		—		—		—		118
Commercial and industrial		—		185		—		—		—		185
Consumer loans		—		44		—		—		23		67
Small Business Administration Loans		—		—		—		—		—		—
Total	$	—	$	1,483	$	—	$	83	$	23	$	1,589

Troubled Debt Restructurings

(dollars in thousand)

			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded		Reserve
December 31, 2021	Loans		Investment		Investment		Difference(1)
Real estate:
Other construction/land		—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—
Equity lines		—		—		—		—
Multi-family residential		2		1,083		1,083		—
Commercial real estate - owner occupied		—		—		—		—
Commercial real estate - non-owner occupied		1		137		136		(1)
Farmland		—		—		—		—
Total real estate loans				1,220		1,219		(1)
Agricultural		1		118		118		116
Commercial and industrial		1		185		185		(1)
Consumer loans		3		67		67		2
Total			$	1,590	$	1,589	$	116