(Dollars in thousands)	March 31, 2022			December 31, 2021
Residential Real Estate:
Single family	$	173,993		$	161,362
Multifamily		192,495			137,705
Farmland		650			1,323
Commercial Real Estate:
Owner-occupied		188,024			173,086
Non-owner occupied		399,981			361,101
Construction and Land Development		344,605			337,173
Commercial – Non Real-Estate:
Commercial & Industrial		111,183			164,014
Consumer – Non Real-Estate:
Unsecured		272			185
Secured		19,439			22,986
Total Gross Loans		1,430,642			1,358,935
Less: unearned fees, net		(4,904	)		(5,478	)
Less: allowance for loan losses		(12,500	)		(11,697	)
Net Loans	$	1,413,238		$	1,341,760

The unsecured consumer loans above include $272,000 and $185,000 of overdrafts reclassified as loans at March 31, 2022 and December 31, 2021, respectively.

The commercial and industrial loans above include $18.8 million and $58.3 million in Paycheck Protection Program loans at March 31, 2022 and December 31, 2021, respectively.

The following tables summarize the activity in the allowance for loan losses by loan class for the three months ended March 31, 2022 and 2021.

	Real Estate
For the three months ended March 31, 2022	Residential			Commercial		Construction		Consumer			Commercial			Total
(Dollars in thousands)
Beginning Balance	$	1,672		$	5,689	$	2,697	$	99		$	1,540		$	11,697
Recoveries		—			—		—		3			—			3
Provision		307			589		60		(6	)		(150	)		800
Ending Balance	$	1,979		$	6,278	$	2,757	$	96		$	1,390		$	12,500
Ending Balance:
Individually evaluated for Impairment	$	—		$	—	$	—	$	—		$	—		$	—
Collectively evaluated for Impairment	$	1,979		$	6,278	$	2,757	$	96		$	1,390		$	12,500

	Real Estate
For the three months ended March 31, 2021	Residential			Commercial		Construction		Consumer			Commercial			Total
(Dollars in thousands)
Beginning Balance	$	1,223		$	6,552	$	3,326	$	371		$	1,405		$	12,877
Recoveries		—			—		—		13			5			18
Provision		(23	)		343		166		(238	)		72			320
Ending Balance	$	1,200		$	6,895	$	3,492	$	146		$	1,482		$	13,215
Ending Balance:
Individually evaluated for Impairment	$	—		$	—	$	—	$	—		$	—		$	—
Collectively evaluated for Impairment	$	1,200		$	6,895	$	3,492	$	146		$	1,482		$	13,215

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 March 31, 2022 and December 31, 2021:

March 31, 2022
Loans Receivable
(Dollars in thousands)	Ending Balance		Ending Balance: Individually Evaluated for Impairment		Ending Balance: Collectively Evaluated for Impairment
Residential Real Estate	$	367,138	$	148	$	366,990
Commercial Real Estate		588,005		1,083		586,922
Construction and Land Development		344,605		—		344,605
Commercial & Industrial		111,183		—		111,183
Consumer		19,711		—		19,711
Total	$	1,430,642	$	1,231	$	1,429,411

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		164,014		8		164,006
Consumer		23,171		—		23,171
Total	$	1,358,935	$	1,231	$	1,357,704

The following table summarizes information in regard to impaired loans by loan portfolio class as of March 31, 2022 and December 31, 2021:

	March 31, 2022						December 31, 2021
(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	$	148	$	148	$	—	$	147	$	147	$	—
Commercial Real Estate
Non-owner Occupied		1,083		1,083		—		1,076		1,076		—
Commercial & Industrial		—		—		—		8		8		—
Total	$	1,231	$	1,231	$	—	$	1,231	$	1,231	$	—

The following table presents additional information regarding the impaired loans for the three months ended March 31, 2022:

	Three Months Ended March 31,
	2022				2021
(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	$	148	$	3	$	209	$	9
Commercial Real Estate
Non-owner Occupied		1,080		22		1,080		65
Commercial & Industrial		—		—		32		2
Total	$	1,228	$	25	$	1,321	$	76

There were no loans placed on nonaccrual as of March 31, 2022 and December 31, 2021.

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, based on 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, and Substandard within the Company’s internal risk rating system as of March 31, 2022 and December 31, 2021:

	March 31, 2022
(Dollars in thousands)	Pass		Watch		Special Mention		Substandard		Total
Residential Real Estate:
Single Family	$	172,869	$	—	$	731	$	393	$	173,993
Multifamily		192,495		—		—		—		192,495
Farmland		650		—		—		—		650
Commercial Real Estate:
Owner occupied		184,881		3,143		—		—		188,024
Non-owner occupied		336,978		46,180		15,255		1,568		399,981
Construction & Land Development		324,094		20,511		—		—		344,605
Commercial – Non Real Estate:
Commercial & Industrial		106,639		140		1,169		3,235		111,183
Consumer – Non Real Estate:
Unsecured		272		—		—		—		272
Secured		19,439		—		—		—		19,439
Total	$	1,338,317	$	69,974	$	17,155	$	5,196	$	1,430,642

	December 31, 2021
(Dollars in thousands)	Pass		Watch		Special Mention		Substandard		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

The following tables present the segments of the loan portfolio summarized by aging categories as of March 31, 2022 and December 31, 2021:

	March 31, 2022
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Nonaccrual
Residential Real Estate:
Single Family	$	—	$	—	$	—	$	—	$	173,993	$	173,993	$	—
Multifamily		—		—		—		—		192,495		192,495		—
Farmland		—		—		—		—		650		650		—
Commercial Real Estate:
Owner occupied		—		—		—		—		188,024		188,024		—
Non-owner occupied		—		—		—		—		399,981		399,981		—
Construction & Land Development		—		—		—		—		344,605		344,605		—
Commercial – Non Real Estate:
Commercial & Industrial		—		—		—		—		111,183		111,183		—
Consumer – Non Real Estate:
Unsecured		—		—		—		—		272		272		—
Secured		24		—		—		24		19,415		19,439		—
Total	$	24	$	—	$	—	$	24	$	1,430,618	$	1,430,642	$	—

	December 31, 2021
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Nonaccrual
Residential Real Estate:
Single Family	$	—	$	—	$	—	$	—	$	161,362	$	161,362	$	—
Multifamily		—		—		—		—		137,705		137,705		—
Farmland		—		—		—		—		1,323		1,323		—
Commercial Real Estate:
Owner occupied		—		—		—		—		173,086		173,086		—
Non-owner occupied		—		—		—		—		361,101		361,101		—
Construction & Land Development		—		—		—		—		337,173		337,173		—
Commercial – Non Real Estate:
Commercial & Industrial		—		—		—		—		164,014		164,014		—
Consumer – Non Real Estate:
Unsecured		—		—		—		—		185		185		—
Secured		46		25		—		71		22,915		22,986		—
Total	$	46	$	25	$	—	$	71	$	1,358,864	$	1,358,935	$	—

The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan that is then identified as a troubled debt restructuring (“TDR”). The Company may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses. TDRs are restored to accrual status when the obligation is brought current, has performed in accordance with the modified contractual terms for a reasonable period, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

According to United States generally accepted accounting principles, restructuring a debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The CARES Act states that from March 1, 2020, until the end of the year (unless the President terminates the COVID-19 emergency declaration sooner), financial institutions may elect to suspend the TDR accounting principles for loan modifications related to COVID-19. The Consolidated Appropriations Act of 2021, enacted in December 2020, extended this relief to the earlier of January 1, 2022 or the first day of a bank’s fiscal year that begins after the national emergency ends.

The Company may identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default,

management will consider the likelihood that cash flow shortages, adverse economic conditions and negative trends may result in a payment default in the near future.