XML 29 R13.htm IDEA: XBRL DOCUMENT v3.22.1
Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Allowance for Loan Losses

Note 5. Allowance for Loan Losses

The following tables summarize the activity in the allowance for loan losses by loan class for the twelve months ended December 31, 2021 and 2020:

Allowance for Credit Losses By Portfolio Segment

For the twelve months ended December 31, 2021

 

 

 

Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

Commercial

 

 

Construction

 

 

Consumer

 

 

Commercial

 

 

Total

 

Beginning Balance

 

$

1,223

 

 

$

6,552

 

 

$

3,326

 

 

$

371

 

 

$

1,405

 

 

$

12,877

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

(32

)

Recoveries

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

11

 

 

 

27

 

Provision

 

 

449

 

 

 

(863

)

 

 

(629

)

 

 

(256

)

 

 

124

 

 

 

(1,175

)

Ending Balance

 

$

1,672

 

 

$

5,689

 

 

$

2,697

 

 

$

99

 

 

$

1,540

 

 

$

11,697

 

Ending Balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for Impairment

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Collectively evaluated for Impairment

 

$

1,672

 

 

$

5,689

 

 

$

2,697

 

 

$

99

 

 

$

1,540

 

 

$

11,697

 

 

Allowance for Credit Losses By Portfolio Segment

For the twelve months ended December 31, 2020

 

 

 

Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

Commercial

 

 

Construction

 

 

Consumer

 

 

Commercial

 

 

Total

 

Beginning Balance

 

$

1,030

 

 

$

4,254

 

 

$

2,180

 

 

$

568

 

 

$

1,552

 

 

$

9,584

 

Charge-offs

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(60

)

 

 

(1,792

)

 

 

(1,853

)

Recoveries

 

 

2

 

 

 

—

 

 

 

—

 

 

 

8

 

 

$

1,526

 

 

 

1,536

 

Provision

 

 

191

 

 

 

2,299

 

 

 

1,146

 

 

 

(145

)

 

 

119

 

 

 

3,610

 

Ending Balance

 

$

1,223

 

 

$

6,552

 

 

$

3,326

 

 

$

371

 

 

$

1,405

 

 

$

12,877

 

Ending Balance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for Impairment

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Collectively evaluated for Impairment

 

$

1,223

 

 

$

6,552

 

 

$

3,326

 

 

$

371

 

 

$

1,405

 

 

$

12,877

 

 

The Company maintains a general allowance for loan losses based on evaluating known and inherent risks in the loan portfolio, including management’s continuing analysis of the factors underlying the quality of the loan portfolio. These factors include changes in the size and composition of the loan portfolio, actual loan loss experience, and current and anticipated economic conditions. The reserve is an estimate based upon factors and trends identified by management at the time the financial statements are prepared.

The following tables summarize information in regards to the recorded investment in loans receivable by loan class as of December 31, 2021 and December 31, 2020:

 

December 31, 2021

 

Loans Receivable

 

(Dollars in thousands)

 

Ending

Balance

 

 

Ending

Balance:

Individually

Evaluated

for

Impairment

 

 

Ending

Balance:

Collectively

Evaluated

for

Impairment

 

Residential Real Estate

 

$

300,390

 

 

$

147

 

 

$

300,243

 

Commercial Real Estate

 

 

534,187

 

 

 

1,076

 

 

 

533,111

 

Construction and Land Development

 

 

337,173

 

 

 

—

 

 

 

337,173

 

Commercial & Industrial(1)

 

 

164,014

 

 

 

8

 

 

 

164,006

 

Consumer

 

 

23,171

 

 

 

—

 

 

 

23,171

 

Total

 

$

1,358,935

 

 

$

1,231

 

 

$

1,357,704

 

 

(1)

No allowance assigned to the $58.3 in PPP loans due to SBA guarantee

 

 

December 31, 2020

 

Loans Receivable

 

(Dollars in thousands)

 

Ending

Balance

 

 

Ending

Balance:

Individually

Evaluated

for

Impairment

 

 

Ending

Balance:

Collectively

Evaluated

for

Impairment

 

Residential Real Estate

 

$

182,499

 

 

$

301

 

 

$

182,198

 

Commercial Real Estate

 

 

467,930

 

 

 

1,088

 

 

 

466,842

 

Construction and Land Development

 

 

324,906

 

 

 

—

 

 

 

324,906

 

Commercial & Industrial(1)

 

 

230,027

 

 

 

58

 

 

 

229,969

 

Consumer

 

 

44,073

 

 

 

—

 

 

 

44,073

 

Total

 

$

1,249,435

 

 

$

1,447

 

 

$

1,247,988

 

 

(1)

No allowance assigned to the $135.2 in PPP loans due to SBA guarantee

 

The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2021 and December 31, 2020:

 

 

 

December 31, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single family

 

$

147

 

 

$

147

 

 

$

—

 

 

$

301

 

 

$

301

 

 

$

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,076

 

 

 

1,076

 

 

 

—

 

 

 

1,088

 

 

 

1,088

 

 

 

—

 

Commercial & Industrial

 

 

8

 

 

 

8

 

 

 

—

 

 

 

58

 

 

 

58

 

 

 

—

 

Total

 

$

1,231

 

 

$

1,231

 

 

$

—

 

 

$

1,447

 

 

$

1,447

 

 

$

—

 

 

The following table presents additional information regarding the impaired loans for the years ended December 31, 2021 and 2020.

 

 

 

Years Ended

 

 

 

December 31, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Average

Record

Investment

 

 

Interest

Income

Recognized

 

 

Average

Record

Investment

 

 

Interest

Income

Recognized

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single family

 

$

209

 

 

$

9

 

 

$

304

 

 

$

16

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

 

1,080

 

 

 

65

 

 

 

1,097

 

 

 

97

 

Commercial & Industrial

 

 

32

 

 

 

2

 

 

 

64

 

 

 

10

 

Total

 

$

1,321

 

 

$

76

 

 

$

1,465

 

 

$

123

 

 

 

No additional funds are committed to be advanced in connection with impaired loans. There were no nonaccrual loans at December 31, 2021 and December 31, 2020 excluded from the impaired loan disclosure.

 

Credit quality risk ratings include regulatory classifications of Pass, Watch, Special Mention, Substandard, Doubtful and Loss. Loans classified as Pass have quality metrics to support that the loan will be repaid according to the terms established. Loans classified as Watch have similar characteristics as Pass loans with some emerging signs of financial weaknesses that should be monitored closer. Loans classified as Special Mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of prospects for repayment. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass.

The following tables summarize the aggregate Pass and criticized categories of Watch, Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2021 and December 31, 2020:

 

 

 

December 31, 2021

 

(Dollars in thousands)

 

Pass

 

 

Watch

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Residential Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Family

 

$

160,234

 

 

$

—

 

 

$

734

 

 

$

394

 

 

$

—

 

 

$

161,362

 

Multifamily

 

 

137,705

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

137,705

 

Farmland

 

 

1,323

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,323

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

168,352

 

 

 

4,734

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

173,086

 

Non-owner occupied

 

 

297,873

 

 

 

46,379

 

 

 

15,275

 

 

 

1,574

 

 

 

—

 

 

 

361,101

 

Construction & Land Development

 

 

317,846

 

 

 

19,327

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

337,173

 

Commercial – Non Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

 

159,634

 

 

 

145

 

 

 

857

 

 

 

3,378

 

 

 

—

 

 

 

164,014

 

Consumer – Non Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured

 

 

185

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

185

 

Secured

 

 

22,986

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,986

 

Total

 

$

1,266,138

 

 

$

70,585

 

 

$

16,866

 

 

$

5,346

 

 

$

—

 

 

$

1,358,935

 

 

 

 

December 31, 2020

 

(Dollars in thousands)

 

Pass

 

 

Watch

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Residential Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Family

 

$

137,937

 

 

$

—

 

 

$

738

 

 

$

663

 

 

$

—

 

 

$

139,338

 

Multifamily

 

 

43,332

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

43,332

 

Farmland

 

 

861

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

861

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

Owner occupied

 

 

136,257

 

 

 

5,556

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

141,813

 

Non-owner occupied

 

 

264,546

 

 

 

59,453

 

 

 

—

 

 

 

1,086

 

 

 

—

 

 

 

325,085

 

Construction & Land Development

 

 

322,149

 

 

 

2,757

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

324,906

 

Commercial – Non Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

Commercial & industrial

 

 

225,012

 

 

 

4,059

 

 

 

591

 

 

 

365

 

 

 

—

 

 

 

230,027

 

Consumer – Non Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

Unsecured

 

 

241

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

241

 

Secured

 

 

43,832

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

43,832

 

Total

 

$

1,174,167

 

 

$

71,825

 

 

$

1,329

 

 

$

2,114

 

 

$

—

 

 

$

1,249,435