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LOANS (Tables)
 3 Months Ended
Mar. 31, 2024
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:
March 31, 2024December 31, 2023
Amount% of
Total		Amount% of
Total
Real estate mortgages:
Construction and development$252,93412.8%$242,96012.9%
Residential238,70212.1%224,60311.9%
Commercial1,182,63460.0%1,144,86760.5%
Commercial and industrial288,70114.7%269,96114.3%
Consumer and other8,4250.4%8,2860.4%
Gross Loans1,971,396100.0%1,890,677100.0%
Deferred loan fees(6,247)(6,169)
Allowance for credit losses(25,144)(24,378)
Loans, net$1,940,005$1,860,130
Schedule of Financing Receivable Credit Quality Indicators
The following tables summarizes the risk category of the Company’s loan portfolio based upon the most recent analysis on the year of origination as of March 31, 2024:
20242023202220212020PriorRevolving LoansTotal
Real Estate Mortgages:
  Construction and development
    Pass$13,948 $52,983 $140,428 $26,016 $1,735 $6,875 $6,530 $248,515 
    Special Mention— — — — — 4,419 — 4,419 
    Substandard— — — — — — — — 
    Doubtful— — — — — — — — 
    Total13,948 52,983 140,428 26,016 1,735 11,294 6,530 252,934 
Current period gross write-off— — — — — — — — 
  Residential
    Pass15,864 50,403 56,688 21,604 41,520 18,535 33,602 238,216 
    Special Mention— 81 — — — — 53 134 
    Substandard— — 114 — — 184 54 352 
    Doubtful— — — — — — — — 
    Total15,864 50,484 56,802 21,604 41,520 18,719 33,709 238,702 
Current period gross write-off— — — — — 11 — 11 
  Commercial
    Pass31,761 231,255 331,937 268,060 97,495 184,663 15,218 1,160,389 
    Special Mention124 — 102 1,172 2,597 1,708 330 6,033 
    Substandard— 658 578 7,803 — 7,173 — 16,212 
    Doubtful— — — — — — — — 
    Total31,885 231,913 332,617 277,035 100,092 193,544 15,548 1,182,634 
Current period gross write-off— — — 27 — — — 27 
Commercial and industrial
  Pass16,856 68,317 49,159 18,633 19,455 11,138 94,811 278,369 
  Special Mention736 43 — 329 2,632 158 4,089 7,987 
  Substandard9 47 768 15 — 210 1,296 2,345 
  Doubtful— — — — — — — — 
  Total17,601 68,407 49,927 18,977 22,087 11,506 100,196 288,701 
Current period gross write-off— — 442 — — — — 442 
Consumer and other
  Pass1,445 1,809 952 173 58 1,286 2,695 8,418 
  Special Mention— — — — — — — — 
  Substandard— — — 7 — — — 7 
  Doubtful— — — — — — — — 
  Total1,445 1,809 952 180 58 1,286 2,695 8,425 
Current period gross write-off— 15 — — — — — 15 
Gross Loans
  Pass79,874 404,767 579,164 334,486 160,263 222,497 152,856 1,933,907 
  Special Mention860 124 102 1,501 5,229 6,285 4,472 18,573 
  Substandard9 705 1,460 7,825 — 7,567 1,350 18,916 
  Doubtful— — — — — — — — 
  Total$80,743 $405,596 $580,726 $343,812 $165,492 $236,349 $158,678 $1,971,396 
Current period gross write-off$— $15 $442 $27 $— $11 $— $495 
Credit Risk Management (Continued)
The following tables 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 
Collateral Dependent Loans
The Company classifies a loan as collateral dependent when the borrower is experiencing financial difficulty, and expected repayment is to be provided substantially through the operation or sale of collateral. The following tables summarize collateral dependent loans, which are individually evaluated to determine expected credit losses, as of March 31, 2024 and December 31, 2023:

Real EstateOtherTotalACL
As of March 31, 2024
Real estate mortgages:
Construction and development$205$—$205$29 
Residential967—96767 
Commercial17,093—17,093769 
Commercial and industrial—2,3522,352404 
Consumer and other— 1717— 
Total$18,265$2,369$20,634$1,269 


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 and leases as of March 31, 2024 and December 31, 2023:
Past Due Status (Accruing Loans)
Current
30-59
Days
60-89
Days
90+
Days
Total Past DueNonaccrual with ACLNonaccrual without ACLTotal
As of March 31, 2024
Real estate mortgages:
Construction and development
$252,934 $— $— $— $— $— $— $252,934 
Residential
237,530 773 153 — 926 23 223 238,702 
Commercial
1,179,342 827 43 — 870 2,024 398 1,182,634 
Commercial and industrial287,690 191 42 — 233 778 — 288,701 
Consumer and other8,425 — — — — — — 8,425 
Total$1,965,921 $1,791 $238 $— $2,029 $2,825 $621 $1,971,396 
As of December 31, 2023
Real estate mortgages:
Construction and development
$242,315 $591 $54 $— $645 $— $— $242,960 
Residential
223,1951,106—511,15723228224,603 
Commercial
1,140,5873,2451601093,5143244421,144,867 
Commercial and industrial269,59826598—363——269,961 
Consumer and other8,2591710—27——8,286 
Total$1,883,954 $5,224 $322 $160 $5,706 $347 $670 $1,890,677 
Schedule of Allowance for Credit Loss
The following tables detail activity in the allowance for credit losses by portfolio segment as of March 31, 2024 and March 31, 2023. 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 March 31, 2024, $1,288 in allowance for credit losses on unfunded commitments was included in other liabilities on the consolidated balance sheets.
Real EstateCommercialConsumerTotal
Allowance for credit losses:
Balance at December 31, 2023
$19,826 $4,466 $86 $24,378 
Provision (credit) for credit losses1,173 48 15 1,236 
Loans charged off(38)(442)(15)(495)
Recoveries of loans previously charged off8 16 1 25 
Ending balance at March 31, 2024
$20,969 $4,088 $87 $25,144 
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 losses2,348 (1,208)41 1,181 
Loans charged off— (218)(6)(224)
Recoveries of loans previously charged off11 14 2 27 
Ending balance at March 31, 2023
$15,638 $4,110 $107 $19,855 
Schedule of Amortized Cost Basis
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 three months ended March 31, 2024.

Three Months Ended March 31, 2024
Term ExtensionTerm Extension and Rate AdjustmentTotalPercentage of Total Loans
Real estate mortgages:
Construction and development
$—$—$—— %
Residential
———— %
Commercial
———— %
Commercial and industrial
———— %
Consumer and other
———— %
       Total$—$—$—— %
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)

Year Ended December 31, 2023
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— %