Loans (Tables)

6 Months Ended

Jun. 30, 2022

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Composition of Loan Portfolio by Major Loan Classifications

The composition of the loan portfolio by major loan classifications at June 30, 2022 and December 31, 2021 appears below (dollars in thousands).

	June 30,			December 31,
	2022			2021
Commercial	$	77,599		$	96,696
Real estate construction and land		55,140			79,331
1-4 family residential mortgages		329,920			358,148
Commercial mortgages		446,282			473,632
Consumer		51,251			53,404
Total loans		960,192			1,061,211
Less: Allowance for loan losses		(5,503	)		(5,984	)
Net loans	$	954,689		$	1,055,227

Summary of Outstanding Principal Balance and Carrying Amount of Loans Acquired in Business Combination

The outstanding principal balance and the carrying amount at June 30, 2022 on these Acquired Loans were as follows (dollars in thousands):

	June 30, 2022						December 31, 2021
	Acquired Loans - Purchased Credit Impaired		Acquired Loans - Purchased Performing		Acquired Loans - Total		Acquired Loans - Purchased Credit Impaired		Acquired Loans - Purchased Performing		Acquired Loans - Total
Outstanding principal balance	$	56,178	$	315,349	$	371,527	$	76,608	$	372,172	$	448,780
Carrying amount:
Commercial	$	702	$	16,273	$	16,975	$	994	$	28,065	$	29,059
Real estate construction and land		6,539		9,133		15,672		18,576		14,297		32,873
1-4 family residential mortgages		11,900		173,134		185,034		16,020		194,708		210,728
Commercial mortgages		24,694		109,880		134,574		28,675		126,638		155,313
Consumer		91		1,678		1,769		118		2,224		2,342
Total acquired loans	$	43,926	$	310,098	$	354,024	$	64,383	$	365,932	$	430,315

Summary of Changes in Accretable Yield of Loans Classified as Purchased Credit Impaired

The following table presents a summary of the changes in the accretable yield of loans classified as purchased credit impaired (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Accretable yield, beginning of period	$	12,428		$	—		$	13,742		$	—
Additions		—			15,499			—			15,499
Accretion		(761	)		(858	)		(1,500	)		(858	)
Reclassification from (to) nonaccretable difference		—			—			2,193			—
Other changes, net		—			—			(2,768	)		—
Accretable yield, end of period	$	11,667		$	14,641		$	11,667		$	14,641

Schedule of Loans Classified as Impaired Loans

The following tables reflect the breakdown by class of the Company’s loans classified as impaired loans, excluding Acquired Loans, as of June 30, 2022 and December 31, 2021. These loans are reported at their recorded investment, which is the carrying amount of the loan as reflected on the Company’s balance sheet, net of charge-offs and other amounts applied to reduce the net book balance. Average recorded investment in impaired loans is computed using an average of month-end balances for these loans for either the six months ended June 30, 2022 or the twelve months ended December 31, 2021. Interest income recognized is for the six months ended June 30, 2022 or the twelve months ended December 31, 2021 (dollars in thousands).

June 30, 2022	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans without a valuation allowance:
1-4 family residential mortgages	$	604	$	626	$	-	$	613	$	2
Total impaired loans without a valuation allowance		604		626		-		613		2
Impaired loans with a valuation allowance
Consumer		835		835		9		840		26
Total impaired loans with a valuation allowance		835		835		9		840		26
Total impaired loans	$	1,439	$	1,461	$	9	$	1,453	$	28

December 31, 2021	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans without a valuation allowance:
Real estate construction and land	$	-	$	37	$	-	$	2	$	-
1-4 family residential mortgages		594		600		-		269		24
Total impaired loans without a valuation allowance		594		637		-		271		24
Impaired loans with a valuation allowance
Consumer		935		935		6		974		54
Total impaired loans with a valuation allowance		935		935		6		974		54
Total impaired loans	$	1,529	$	1,572	$	6	$	1,245	$	78

Schedule of Impaired Loans Classified as Non-Accruals by Class

The recorded investment in non-accrual loans is shown below by class (dollars in thousands):

	June 30, 2022		December 31, 2021
1-4 family residential mortgages	$	511	$	495
Total non-accrual loans	$	511	$	495

Schedule of Loans Modified Under Terms of a TDR

The following provides a summary, by class, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed in non-accrual status, which are considered to be nonperforming (dollars in thousands).

Troubled debt restructurings	June 30, 2022				December 31, 2021
	No. of		Recorded		No. of		Recorded
	Loans		Investment		Loans		Investment
Performing TDRs
1-4 family residential mortgages		1	$	93		1	$	99
Consumer		56		835		58		935
Total performing TDRs		57	$	928		59	$	1,034
Nonperforming TDRs
1-4 family residential mortgages		2		511		1		495
Total nonperforming TDRs		2	$	511		1	$	495
Total TDRs		59	$	1,439		60	$	1,529

Summary of Modified Loans

A summary of loans shown above that were modified under the terms of a TDR during the six months ended June 30, 2022 and 2021 is shown below by class (dollars in thousands). The Post-Modification Recorded Balance reflects the period end balances, inclusive of any interest capitalized to principal, partial principal paydowns, and principal charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported.

	For the six months ended						For the six months ended
	June 30, 2022						June 30, 2021
	Number of Loans		Pre- Modification Recorded Balance		Post- Modification Recorded Balance		Number of Loans		Pre- Modification Recorded Balance		Post- Modification Recorded Balance
Consumer	--		$	—	$	—		6	$	63	$	63
1-4 family residential mortgages		1		54		54	--			—		—
Total loans modified    during the period		1	$	54	$	54		6	$	63	$	63