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LOANS (Tables)
 12 Months Ended
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Schedule of Composition of Loans
The composition of loans, excluding loans held for sale, is summarized as follows:
December 31,
20232022
Amount% of
Total		Amount% of
Total
Real estate mortgages:
Construction and development$242,96012.9%$255,73616.1%
Residential224,60311.9%167,89110.5%
Commercial1,144,86760.5%904,87256.8%
Commercial and industrial269,96114.3%256,55316.1%
Consumer and other8,2860.4%7,6550.5%
Gross Loans1,890,677100.0%1,592,707100.0%
Deferred loan fees(6,169)(5,543)
Allowance for credit losses(24,378)(20,156)
Loans, net$1,860,130$1,567,008
Schedule of Financing Receivable Credit Quality Indicators
The following table summarizes the risk category of the Company’s loan portfolio based upon the most recent analysis on the year of origination as of December 31, 2023:

20232022202120202019PriorRevolving LoansTotal
Real Estate Mortgages:
  Construction and development
    Pass$48,141 $139,291 $39,679 $1,721 $1,969 $5,214 $2,516 $238,531 
    Special Mention— — — — — 4,429 — 4,429 
    Substandard— — — — — — — — 
    Doubtful— — — — — — — — 
    Total48,141 139,291 39,679 1,721 1,969 9,643 2,516 242,960 
Current period gross write-off— — — — — — 3 3 
  Residential
    Pass51,135 54,610 23,808 42,071 6,496 12,883 33,132 224,135 
    Special Mention81 — — — — — — 81 
    Substandard— 118 — — 153 62 54 387 
    Doubtful— — — — — — — — 
    Total51,216 54,728 23,808 42,071 6,649 12,945 33,186 224,603 
Current period gross write-off— — — — — — — — 
  Commercial
    Pass232,834 328,006 256,007 99,067 63,906 125,007 14,685 1,119,512 
    Special Mention— 350 2,840 2,623 414 4,490 — 10,717 
    Substandard660 432 7,811 — — 5,735 — 14,638 
    Doubtful— — — — — — — — 
    Total233,494 328,788 266,658 101,690 64,320 135,232 14,685 1,144,867 
Current period gross write-off— — — — — — — — 
Commercial and industrial
  Pass68,482 51,368 20,626 21,390 4,758 7,257 88,074 261,955 
  Special Mention126 — — 2,711 172 — 1,873 4,882 
  Substandard— 1,210 20 — 219 — 1,675 3,124 
  Doubtful— — — — — — — — 
  Total68,608 52,578 20,646 24,101 5,149 7,257 91,622 269,961 
Current period gross write-off424 51 167 44 — — — 686 
Consumer and other
  Pass2,291 1,111 292 149 316 1,275 2,852 8,286 
  Special Mention— — — — — — — — 
  Substandard— — — — — — — — 
  Doubtful— — — — — — — — 
  Total2,291 1,111 292 149 316 1,275 2,852 8,286 
Current period gross write-off— 6 2 — — — — 8 
Gross Loans
  Pass402,883 574,386 340,412 164,398 77,445 151,636 141,259 1,852,419 
  Special Mention207 350 2,840 5,334 586 8,919 1,873 20,109 
  Substandard660 1,760 7,831 — 372 5,797 1,729 18,149 
  Doubtful— — — — — — — — 
  Total$403,750 $576,496 $351,083 $169,732 $78,403 $166,352 $144,861 $1,890,677 
Current period gross write-off$424 $57 $169 $44 $— $— $3 $697 
The following table summarizes the risk category of the Company’s loan portfolio based upon the most recent analysis performed as of December 31, 2022, prior to the adoption of ASU 2016-13:

PassSpecial
Mention		SubstandardDoubtfulTotal
As of December 31, 2022
Real estate mortgages:
Construction and development$251,130 $4,539 $67 $— $255,736 
Residential165,388 1,787 716 — 167,891 
Commercial883,082 18,532 3,258 — 904,872 
Commercial and industrial247,948 8,322 283 — 256,553 
Consumer and other7,604 28 23 — 7,655 
Total$1,555,152 $33,208 $4,347 $— $1,592,707 
The following table summarizes collateral dependent loans, which are individually evaluated to determine expected credit losses.
Real EstateOtherTotalACL
As of December 31, 2023
Real estate mortgages:
Construction and development$210$—$210$31 
Residential980—98072 
Commercial15,514—15,514162 
Commercial and industrial—3,1313,1311,100 
Consumer and other— 11111 
Total$16,704$3,142$19,846$1,366 
Schedule of Aging Analysis The following tables present the aging of the recorded investment in loans as of December 31, 2023 and December 31, 2022:
Past Due Status (Accruing Loans)
Current
30-59
Days
60-89
Days
90+
Days
Total Past DueNonaccrual with ACLNonaccrual without ACLTotal
As of December 31, 2023
Real estate mortgages:
Construction and development
$242,315 $591 $54 $— $645 $— $— $242,960 
Residential
223,195 1,106 — 51 1,157 23 228 224,603 
Commercial
1,140,587 3,245 160 109 3,514 324 442 1,144,867 
Commercial and industrial269,598 265 98 — 363 — — 269,961 
Consumer and other8,259 17 10 — 27 — — 8,286 
Total$1,883,954 $5,224 $322 $160 $5,706 $347 $670 $1,890,677 
As of December 31, 2022
Real estate mortgages:
Construction and development
$255,575 $— $94 $— $94 $— $67 $255,736 
Residential
167,10814772—21930534 167,891 
Commercial
900,8952,63465—2,699351927 904,872 
Commercial and industrial254,8241,37938—1,41727735 256,553 
Consumer and other7,57062——62167 7,655 
Total$1,585,972 $4,222 $269 $— $4,491 $674 $1,570 $1,592,707 
Schedule of Allowance for Credit Loss
The following tables detail activity in the allowance for credit losses by portfolio segment as of December 31, 2023 and December 31, 2022. As described in Note 1, the Company adopted ASU 2016-13 on January 1, 2023, which replaced the existing incurred loss methodology with an expected credit loss methodology (referred to as CECL). Under the incurred loss methodology, reserves for credit losses were recognized only when the losses were probable or had been incurred; under CECL, the Company is required to recognize the full amount of expected credit losses for the lifetime of the loan, based on historical experience, current conditions and reasonable and supportable forecasts. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
We maintain an allowance for credit losses on unfunded loan commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance for credit losses is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the consolidated balance sheet within other liabilities, while corresponding provision for these credit losses is recorded as a component of other operating expense. The allowance for credit losses on unfunded commitments as the result of the adoption of ASC 326 was $1,285. At December 31, 2023, $1,239 in allowance for credit losses on unfunded commitments was included in other liabilities on the consolidated balance sheets.
Allowance for Credit Losses (Continued)
Real EstateCommercialConsumerTotal
Allowance for credit losses:
Balance at December 31, 2022
$14,443 $5,642 $71 $20,156 
Impact of adoption of ASC 326(1,164)(120)(1)(1,285)
Provision (credit) for credit losses6,509 (424)5 6,090 
Loans charged off(3)(686)(8)(697)
Recoveries of loans previously charged off41 54 19 114 
Ending balance at December 31, 2023
$19,826 $4,466 $86 $24,378 
Allowance for Loans Losses - Incurred Loss Methodology

Real EstateCommercialConsumerTotal
Allowance for loan losses:
Balance at December 31, 2021
$11,554 $3,166 $124 $14,844 
Provision (credit) for loan losses2,912 2,750 (57)5,605 
Loans charged off(73)(479)(26)(578)
Recoveries of loans previously charged off50 205 30 285 
Ending balance at December 31, 2022
$14,443 $5,642 $71 $20,156 
Ending balance - individually evaluated for impairment$258 $248 $8 $514 
Ending balance - collectively evaluated for impairment14,148 5,394 63 19,605 
Ending balance - loans acquired with deteriorated credit quality37 — — 37 
Total ending balance at December 31, 2022
$14,443 $5,642 $71 $20,156 
Loans:
Ending balance - individually evaluated for impairment$8,652 $313 $34 $8,999 
Ending balance - collectively evaluated for impairment1,318,705 256,240 7,621 1,582,566 
Ending balance - loans acquired with deteriorated credit quality1,142 — — 1,142 
Total ending balance at December 31, 2022
$1,328,499 $256,553 $7,655 $1,592,707 
Schedule of Impaired Loans The following tables detail our impaired loans, by portfolio class as of December 31, 2022.
Impaired Loans - Incurred Loss Methodology (Continued)
Recorded
Investment		Unpaid
Principal
Balance		Related
Allowance		Average
Recorded
Investment		Interest Income Recognized
December 31, 2022
With no related allowance recorded:
Real estate mortgages:
Construction and development
$372$372$—$397$21 
Residential
1,1291,129—1,16959 
Commercial
7,3237,323—7,282622 
Commercial and industrial
3636—423 
Consumer and other
1818—241 
Total with no related allowance recorded
8,8788,878—8,914$706
With an allowance recorded:
Real estate mortgages:
Construction and development
92923995$6 
Residential
2553269026512 
Commercial
62362316663021 
Commercial and industrial
27727724829814 
Consumer and other
16168161 
Total with an allowance recorded
1,2631,3345511,30454
Total impaired loans:$10,141$10,212$551$10,218$760
Schedule of Troubled Debt Restructuring
The table below details the amortized cost basis at the end of the reporting period for loans made to borrowers experiencing financial difficulty that were modified during the year ended December 31, 2023.
Modifications to Borrowers Experiencing Financial Difficulty (Continued)

Term ExtensionTerm Extension and Rate AdjustmentTotalPercentage of Total Loans
Real estate mortgages:
Construction and development
$89$117$206— %
Residential
———— %
Commercial
———— %
Commercial and industrial
———— %
Consumer and other
———— %
       Total$89$117$206— %
The following table summarizes the loans that were modified as a TDR during the year ended December 31, 2022.
Troubled Debt Restructurings (Continued)
Troubled Debt Restructurings
RecordedRecorded
InvestmentInvestmentImpact on the
NumberPrior toAfterAllowance for
of LoansModificationModificationLoan Losses
December 31, 2022
Real estate mortgages:
Construction and development— $— $— $— 
Residential2 170 164 — 
Commercial1 359 352 116 
Commercial and industrial1 11 11 — 
Consumer and other— — — — 
      Total4 $540 $527 $116