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LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Summary of the Company's loans
The following presents a summary of the Company’s loans as of the dates noted (dollars in thousands):
December 31,
2022		December 31,
2021
Cash, Securities and Other(1)
$165,670 $261,190 
Consumer and Other(2)
49,954 34,758 
Construction and Development288,497 178,716 
1-4 Family Residential898,154 580,872 
Non-Owner Occupied CRE496,776 482,622 
Owner Occupied CRE216,056 212,426 
Commercial and Industrial(3)
361,028 203,584 
Total loans held for investment2,476,135 1,954,168 
Deferred fees and unamortized premiums/(unaccreted discounts), net(4)
(6,722)(5,031)
Allowance for loan losses(17,183)(13,732)
Loans, net$2,452,230 $1,935,405 
_____________________________
(1)Includes Paycheck Protection Program ("PPP") loans of $7.1 million and $46.8 million as of December 31, 2022 and 2021, respectively.
(2)Includes $23.4 million of unpaid principal balance of loans held for investment measured at fair value as of December 31, 2022.
(3)Includes MSLP loans of $6.6 million and $6.8 million as of December 31, 2022 and 2021, respectively.
(4)Includes fair value adjustments on loans held for investment accounted for under the fair value option.
Summary of aging analysis of the recorded investments in loans past due
The following presents, by class, an aging analysis of the recorded investments (excluding accrued interest receivable, deferred fees, and unamortized premiums/(unaccreted discounts) which are not material) in loans past due as of the dates noted (dollars in thousands):
December 31, 202230-59
Days
Past Due		60-89
Days
Past Due		90 or
More Days
Past Due		Total
Loans
Past Due		CurrentTotal
Recorded
Investment
Cash, Securities and Other$1,735 $539 $4 $2,278 $163,392 $165,670 
Consumer and Other996 167 145 1,308 48,646 49,954 
Construction and Development— — 201 201 288,296 288,497 
1-4 Family Residential1,747 — — 1,747 896,407 898,154 
Non-Owner Occupied CRE1,073 — — 1,073 495,703 496,776 
Owner Occupied CRE1,165 — — 1,165 214,891 216,056 
Commercial and Industrial5,051 10,724 1,318 17,093 343,935 361,028 
Total$11,767 $11,430 $1,668 $24,865 $2,451,270 $2,476,135 
December 31, 202130-59
Days
Past Due		60-89
Days
Past Due		90 or
More Days
Past Due		Total
Loans
Past Due		CurrentTotal
Recorded
Investment
Cash, Securities and Other$745 $— $6 $751 $260,439 $261,190 
Consumer and Other454 — 2 456 34,302 34,758 
Construction and Development2,758 — — 2,758 175,958 178,716 
1-4 Family Residential1,449 — — 1,449 579,423 580,872 
Non-Owner Occupied CRE— 2,548 — 2,548 480,074 482,622 
Owner Occupied CRE1,419 — — 1,419 211,007 212,426 
Commercial and Industrial748 — 2,200 2,948 200,636 203,584 
Total$7,573 $2,548 $2,208 $12,329 $1,941,839 $1,954,168 
Schedule of recorded investment in non accrual loans by class
The following presents the recorded investment in non-accrual loans by class as of the dates noted (dollars in thousands):
December 31,
2022		December 31,
2021
Cash, Securities and Other$4 $6 
Consumer and Other146 2 
Construction and Development201 — 
1-4 Family Residential— 75 
Owner Occupied CRE1,165 1,241 
Commercial and Industrial10,833 2,938 
Total$12,349 $4,262 
Summary of the unpaid principal balance of loans classified as TDRs
The following presents a summary of the unpaid principal balance of loans classified as TDRs as of the dates noted (dollars in thousands):
December 31,
2022		December 31,
2021
Accruing
Non-Owner Occupied CRE$— $55 
Non-accrual
Cash, Securities, and Other4 6 
1-4 Family Residential— 75 
Owner Occupied CRE1,165 1,241 
Commercial and Industrial1,951 2,938 
Total3,120 4,315 
Allowance for loan losses associated with TDR— (1,751)
Net recorded investment$3,120 $2,564 
Summary of impaired loans by portfolio and related valuation allowance
The following presents impaired loans by portfolio and related valuation allowance as of the periods presented (in thousands):
December 31, 2022December 31, 2021
Total
Recorded
Investment		Unpaid
Contractual
Principal
Balance		Allowance
for
Loan
Losses		Total
Recorded
Investment		Unpaid
Contractual
Principal
Balance		Allowance
for
Loan
Losses
Impaired loans with a valuation allowance:
Consumer and Other$— $— $— $2 $2 $2 
Commercial and Industrial— — — 2,190 2,190 1,751 
Total$— $— $— $2,192 $2,192 $1,753 
Impaired loans with no related valuation allowance:
Cash, Securities, and Other$4 $4 $— $6 $6 $— 
Construction and Development201 201 — — — — 
1-4 Family Residential— — — 75 75 — 
Owner Occupied CRE1,165 1,165 — 1,241 1,241 — 
Commercial and Industrial10,833 10,833 — 748 748 — 
Total$12,203 $12,203 $— $2,070 $2,070 $— 
Total impaired loans:
Cash, Securities, and Other$4 $4 $— $6 $6 $— 
Consumer and Other— — — 2 2 2 
Construction and Development201 201 — — — — 
Commercial and Industrial10,833 10,833 — 2,938 2,938 1,751 
1-4 Family Residential— — — 75 75 — 
Owner Occupied CRE1,165 1,165 — 1,241 1,241 — 
Total$12,203 $12,203 $— $4,262 $4,262 $1,753 
The following presents the average balance of impaired loans and interest income recognized on impaired loans during the periods presented (dollars in thousands):
December 31,
20222021
Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
Impaired loans with a valuation allowance:
Cash, Securities, and Other$— $— $2 $— 
Consumer and Other1 — — — 
Commercial and Industrial— — 2,413 21 
Total$1 $— $2,415 $21 
Impaired loans with no related valuation allowance:
Cash, Securities, and Other$4 $— $17 $— 
Construction and Development81 — — — 
Owner Occupied CRE1,201 — 248 51 
Commercial and Industrial4,297 *205 262 
1-4 Family Residential57 — 15 — 
Total$5,640 $— $485 $313 
Total impaired loans:
Cash, Securities, and Other$4 $— $19 $— 
Consumer and Other1 — — — 
Construction and Development81 — — — 
Owner Occupied CRE1,201 — 248 51 
Commercial and Industrial4,297 *2,618 283 
1-4 Family Residential57 — 15 — 
Total$5,641 $— $2,900 $334 
_____________________________
(•)The Company recognized an immaterial amount of interest income during the period.
Schedule of activity in the Company's allowance for loan losses by portfolio class
Allocation of a portion of the allowance for loan losses to one category of loans does not preclude its availability to absorb losses in other categories. The following presents the activity in the Company’s allowance for loan losses by portfolio class for the periods presented (in thousands):
Cash,
Securities
and Other		Consumer and OtherConstruction
and
Development		1-4
Family
Residential		Non-Owner
Occupied
CRE		Owner
Occupied
CRE		Commercial
and
Industrial		Total
Changes in allowance for loan losses for the year ended December 31, 2022
Beginning balance$1,598 $266 $1,092 $3,553 $2,952 $1,292 $2,979 $13,732 
(Recovery of)/provision for loan losses(399)84 933 2,756 538 218 (448)3,682 
Charge-offs(1)(262)— — — — (71)(334)
Recoveries— 103 — — — — — 103 
Ending balance$1,198 $191 $2,025 $6,309 $3,490 $1,510 $2,460 $17,183 
Allowance for loan losses as of December 31, 2022 allocated to loans evaluated for impairment:       
Individually$— $— $— $— $— $— $— $— 
Collectively1,198 191 2,025 6,309 3,490 1,510 2,460 17,183 
Ending balance$1,198 $191 $2,025 $6,309 $3,490 $1,510 $2,460 $17,183 
Loans as of December 31, 2022, evaluated for impairment:       
Individually$4 $— $201 $— $— $1,165 $10,833 $12,203 
Collectively165,666 26,539 288,296 898,154 496,776 214,891 350,195 2,440,517 
Measured at fair value— 23,415 — — — — — 23,415 
Ending balance$165,670 $49,954 $288,497 $898,154 $496,776 $216,056 $361,028 $2,476,135 
Cash,
Securities
and Other		Consumer and OtherConstruction
and
Development		1-4
Family
Residential		Non-Owner
Occupied
CRE		Owner
Occupied
CRE		Commercial
and
Industrial		Total
Changes in allowance for loan losses for the year ended December 31, 2021
Beginning balance$2,439 $140 $932 $3,233 $2,004 $1,159 $2,632 $12,539 
Provision for/(recovery of) loan losses(841)163 160 320 948 133 347 1,230 
Charge-offs— (44)— — — — — (44)
Recoveries— 7 — — — — — 7 
Ending balance$1,598 $266 $1,092 $3,553 $2,952 $1,292 $2,979 $13,732 
Allowance for loan losses as of December 31, 2021 allocated to loans evaluated for impairment:       
Individually$— $2 $— $— $— $— $1,751 $1,753 
Collectively1,598 264 1,092 3,553 2,952 1,292 1,228 11,979 
Ending balance$1,598 $266 $1,092 $3,553 $2,952 $1,292 $2,979 $13,732 
Loans as of December 31, 2021, evaluated for impairment:       
Individually$6 $2 $— $75 $— $1,241 $2,938 $4,262 
Collectively261,184 34,756 178,716 580,797 482,622 211,185 200,646 1,949,906 
Ending balance$261,190 $34,758 $178,716 $580,872 $482,622 $212,426 $203,584 $1,954,168 
Summary of recorded investment in the Company's loans by class and by credit quality indicator
Loans not meeting any of the three criteria above are considered to be pass-rated loans. The following presents, by class and by credit quality indicator, the recorded investment in the Company’s loans as of the dates noted (dollars in thousands):
December 31, 2022PassSpecial
Mention		SubstandardNot RatedTotal
Cash, Securities and Other$165,666 $— $4 $— $165,670 
Consumer and Other26,539 — — 23,415 49,954 
Construction and Development288,296 — 201 — 288,497 
1-4 Family Residential898,154 — — — 898,154 
Non-Owner Occupied CRE496,776 — — — 496,776 
Owner Occupied CRE214,891 — 1,165 — 216,056 
Commercial and Industrial347,803 2,392 10,833 — 361,028 
Total$2,438,125 $2,392 $12,203 $23,415 $2,476,135 
December 31, 2021PassSpecial
Mention		SubstandardNot RatedTotal
Cash, Securities and Other$261,184 $— $6 $— $261,190 
Consumer and Other34,756 — 2 — 34,758 
Construction and Development176,194 2,522 — — 178,716 
1-4 Family Residential580,797 — 75 — 580,872 
Non-Owner Occupied CRE476,670 5,952 — — 482,622 
Owner Occupied CRE210,493 — 1,933 — 212,426 
Commercial and Industrial198,368 401 4,815 — 203,584 
Total$1,938,462 $8,875 $6,831 $— $1,954,168