Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2022

Allowance For Loan Losses [Abstract]

Summary of Transactions in Allowance for Loan Losses

A summary of the transactions in the allowance for loan losses for the years ended December 31, 2022 and 2021 appears below:

(Dollars in thousands)	2022			2021
Balance, beginning of period	$	5,984		$	5,455
Loans charged off		(1,255	)		(835	)
Recoveries		717			350
Net charge-offs		(538	)		(485	)
Provision for loan losses		106			1,014
Balance, December 31	$	5,552		$	5,984

Internal Risk Rating Grades

The following represents the loan portfolio designated by the internal risk ratings assigned to each credit at December 31, 2022 and 2021. There were no loans rated “Doubtful” as of either period.

December 31, 2022	Excellent		Good		Pass		Watch		Special Mention		Sub- standard		TOTAL
(Dollars in thousands)
Commercial	$	30,121	$	16,058	$	22,853	$	992	$	122	$	993	$	71,139
Real estate construction and land		-		-		35,258		342		532		1,409		37,541
1-4 family residential mortgages		-		-		308,041		7,935		5,431		1,778		323,185
Commercial mortgages		-		-		408,513		34,828		3,872		11,912		459,125
Consumer		461		17,544		26,326		977		22		95		45,425
Total Loans	$	30,582	$	33,602	$	800,991	$	45,074	$	9,979	$	16,187	$	936,415

December 31, 2021	Excellent		Good		Pass		Watch		Special Mention		Sub- standard		TOTAL
(Dollars in thousands)
Commercial	$	45,862	$	13,920	$	32,460	$	732	$	1,645	$	2,077	$	96,696
Real estate construction and land		-		-		51,098	7360			2,849		18,024		79,331
1-4 family residential mortgages		-		2,030		334,300		5,013		1,520		15,285		358,148
Commercial mortgages		-		-		382,108		61,563		8,530		21,431		473,632
Consumer		524		18,535		32,821		1,225		179		120		53,404
Total Loans	$	46,386	$	34,485	$	832,787	$	75,893	$	14,723	$	56,937	$	1,061,211

Summary of Transactions in Allowance for Loan Losses by Major Loan Portfolio Segment

Allowance for Loan Losses Rollforward by Portfolio Segment

As of and for the year ended December 31, 2022

(Dollars in thousands)	Commercial Loans			Real Estate Construction and Land			Real Estate Mortgages			Consumer Loans			Total
Allowance for Loan Losses:
Balance as of beginning of year	$	252		$	399		$	4,478		$	855		$	5,984
Charge-offs		(600	)		-			-			(655	)		(1,255	)
Recoveries		519			9			11			178			717
Provision for (recovery of) loan losses		23			(187	)		(51	)		321			106
Ending Balance	$	194		$	221		$	4,438		$	699		$	5,552
Ending Balance:
Individually evaluated for impairment	$	-		$	-		$	-		$	23		$	23
Collectively evaluated for impairment		194			221			4,438			676			5,529
Acquired loans - purchased credit    impaired		-			-			-			-			-
Loans:
Individually evaluated for impairment	$	-		$	-		$	583		$	700		$	1,283
Collectively evaluated for impairment		70,509			36,080			751,823			44,653			903,065
Acquired loans - purchased credit    impaired		630			1,461			29,904			72			32,067
Ending Balance	$	71,139		$	37,541		$	782,310		$	45,425		$	936,415

As of and for the year ended December 31, 2021

(Dollars in thousands)	Commercial Loans			Real Estate Construction and Land		Real Estate Mortgages		Consumer Loans			Total
Allowance for Loan Losses:
Balance as of beginning of year	$	209		$	160	$	3,897	$	1,189		$	5,455
Charge-offs		(147	)		-		-		(688	)		(835	)
Recoveries		191			12		6		141			350
Provision for (recovery of) loan losses		(1	)		227		575		213			1,014
Ending Balance	$	252		$	399	$	4,478	$	855		$	5,984
Ending Balance:
Individually evaluated for impairment	$	-		$	-	$	-	$	6		$	6
Collectively evaluated for impairment		252			399		4,478		849			5,978
Acquired loans - purchased credit    impaired		-			-		-		-			-
Loans:
Individually evaluated for impairment	$	-		$	-	$	594	$	935		$	1,529
Collectively evaluated for impairment		95,702			60,755		786,491		52,351			995,299
Acquired loans - purchased credit    impaired		994			18,576		44,695		118			64,383
Ending Balance	$	96,696		$	79,331	$	831,780	$	53,404		$	1,061,211