LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2019

LOANS AND ALLOWANCE FOR LOAN LOSSES

Summary of major classifications of loans

	December 31,
(Dollars in thousands)	2019		2018
Construction and development	$	31,739	$	42,718
Commercial real estate		424,950		396,598
Commercial and industrial		53,105		33,100
Residential real estate		651,645		670,341
Consumer and other		1,768		2,957
Total loans receivable		1,163,207		1,145,714
Unearned income		(2,045)		(2,139)
Allowance for loan losses		(6,839)		(6,645)
Loans, net	$	1,154,323	$	1,136,930

Schedule of allowance for loan losses by portfolio segment

	Year Ended December 31, 2019
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	235	$	2,601	$	380	$	3,042	$	387	$	—	$	6,645
Charge-offs		—		(237)		(14)		—		(525)		—		(776)
Recoveries		—		752		—		—		218		—		970
Provision		(104)		(796)		82		415		11		392		—
Ending balance	$	131	$	2,320	$	448	$	3,457	$	91	$	392	$	6,839

	Year Ended December 31, 2018
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	127	$	2,135	$	261	$	3,048	$	1,170	$	184	$	6,925
Charge-offs		—		(88)		(39)		—		(1,939)		—		(2,066)
Recoveries		—		22		—		—		527		—		549
Provision		108		532		158		(6)		629		(184)		1,237
Ending balance	$	235	$	2,601	$	380	$	3,042	$	387	$	—	$	6,645

	Year Ended December 31, 2017
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	116	$	2,854	$	257	$	1,656	$	5	$	582	$	5,470
Charge-offs		—		(131)		—		—		(1,513)		—		(1,644)
Recoveries		—		41		—		—		—		—		41
Provision		11		(629)		4		1,392		2,678		(398)		3,058
Ending balance	$	127	$	2,135	$	261	$	3,048	$	1,170	$	184	$	6,925

The following tables present, by portfolio segment, the balance in the allowance for loan losses disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans as of December 31, 2019 and 2018.

	December 31, 2019
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	716	$	30	$	—	$	—	$	—	$	746
Collectively evaluated for impairment		131		1,604		418		3,457		9		392		6,011
Acquired with deteriorated credit quality		—		—		—		—		82		—		82
Total ending allowance balance	$	131	$	2,320	$	448	$	3,457	$	91	$	392	$	6,839
Loans:
Individually evaluated for impairment	$	1,360	$	7,527	$	957	$	7,936	$	—	$	—	$	17,780
Collectively evaluated for impairment		30,076		415,773		52,056		643,709		958		—		1,142,572
Acquired with deteriorated credit quality		—		—		—		—		810		—		810
Total ending loans balance	$	31,436	$	423,300	$	53,013	$	651,645	$	1,768	$	—	$	1,161,162

	December 31, 2018
	Construction
	and		Commercial		Commercial		Residential		Consumer
(Dollars in thousands)	Development		Real Estate		and Industrial		Real Estate		and Other		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	117	$	872	$	110	$	—	$	—	$	—	$	1,099
Collectively evaluated for impairment		118		1,729		270		3,042		3		—		5,162
Acquired with deteriorated credit quality		—		—		—		—		384		—		384
Total ending allowance balance	$	235	$	2,601	$	380	$	3,042	$	387	$	—	$	6,645
Loans:
Individually evaluated for impairment	$	1,360	$	8,144	$	986	$	1,722	$	—	$	—	$	12,212
Collectively evaluated for impairment		40,928		386,819		32,040		668,619		316		—		1,128,722
Acquired with deteriorated credit quality		—		—		—		—		2,641		—		2,641
Total ending loans balance	$	42,288	$	394,963	$	33,026	$	670,341	$	2,957	$	—	$	1,143,575

Summary of impaired loans by portfolio segment

	Unpaid		Recorded		Recorded
	Total		Investment		Investment		Total
(Dollars in thousands)	Principal		With No		With		Recorded		Related
December 31, 2019	Balance		Allowance		Allowance		Investment		Allowance
Construction and development	$	1,360	$	1,360	$	—	$	1,360	$	—
Commercial real estate		7,527		4,716		2,882		7,598		716
Commercial and industrial		957		925		39		964		30
Residential real estate		7,936		7,936		—		7,936		—
Total	$	17,780	$	14,937	$	2,921	$	17,858	$	746

	Unpaid		Recorded		Recorded
	Total		Investment		Investment		Total
(Dollars in thousands)	Principal		With No		With		Recorded		Related
December 31, 2018	Balance		Allowance		Allowance		Investment		Allowance
Construction and development	$	1,360	$	—	$	1,360	$	1,360	$	117
Commercial real estate		8,144		5,312		2,967		8,279		872
Commercial and industrial		986		302		684		986		110
Residential real estate		1,722		1,722		—		1,722		—
Total	$	12,212	$	7,336	$	5,011	$	12,347	$	1,099

Summary of average recorded investment in impaired loans

	Years Ended December 31,
	2019				2018				2017
	Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income
(Dollars in thousands)	Investment		Recognized		Investment		Recognized		Investment		Recognized
Construction and development	$	1,360	$	6	$	1,922	$	68	$	2,610	$	95
Commercial real estate		8,057		629		7,474		653		6,972		431
Commercial and industrial		966		33		1,165		25		900		34
Residential real estate		6,278		104		1,705		99		—		—
Total	$	16,661	$	772	$	12,266	$	845	$	10,482	$	560

Schedule of delinquent amounts by portfolio segment

					Accruing		Total				Total
(Dollars in thousands)					Greater than		Accruing				Financing
December 31, 2019	Current		30-89 Days		90 Days		Past Due		Nonaccrual		Receivables
Construction and development	$	30,076	$	—	$	—	$	—	$	1,360	$	31,436
Commercial real estate		419,406		973		—		973		2,921		423,300
Commercial and industrial		52,936		58		—		58		19		53,013
Residential real estate		625,222		18,487		—		18,487		7,936		651,645
Consumer and other		1,768		—		—		—		—		1,768
Total	$	1,129,408	$	19,518	$	—	$	19,518	$	12,236	$	1,161,162

					Accruing		Total				Total
(Dollars in thousands)					Greater than		Accruing				Financing
December 31, 2018	Current		30-89 Days		90 Days		Past Due		Nonaccrual		Receivables
Construction and development	$	42,288	$	—	$	—	$	—	$	—	$	42,288
Commercial real estate		390,601		1,102		—		1,102		3,260		394,963
Commercial and industrial		32,315		26		—		26		685		33,026
Residential real estate		651,439		17,180		—		17,180		1,722		670,341
Consumer and other		2,957		—		—		—		—		2,957
Total	$	1,119,600	$	18,308	$	—	$	18,308	$	5,667	$	1,143,575

Summary of purchased loans by risk rating

	Construction
(Dollars in thousands)	and		Commercial		Commercial		Residential		Consumer
December 31, 2019	Development		Real Estate		and Industrial		Real Estate		and Other		Total
Rating:
Pass	$	30,076	$	416,183	$	52,033	$	641,544	$	1,768	$	1,141,604
Special Mention		—		800		—		—		—		800
Substandard		1,360		6,317		980		10,101		—		18,758
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	31,436	$	423,300	$	53,013	$	651,645	$	1,768	$	1,161,162

	Construction
(Dollars in thousands)	and		Commercial		Commercial		Residential		Consumer
December 31, 2018	Development		Real Estate		and Industrial		Real Estate		and Other		Total
Rating:
Pass	$	40,928	$	383,857	$	32,040	$	667,249	$	2,957	$	1,127,031
Special Mention		—		5,112		—		—		—		5,112
Substandard		1,360		5,994		986		3,092		—		11,432
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	42,288	$	394,963	$	33,026	$	670,341	$	2,957	$	1,143,575

Schedule of TDRs classified separately as accrual and non-accrual

(Dollars in thousands)
December 31, 2019	Accruing		Nonaccrual		Total
Commercial real estate	$	2,437	$	482	$	2,919
Commercial and industrial		22		5		27
Total	$	2,459	$	487	$	2,946

(Dollars in thousands)
December 31, 2018	Accruing		Nonaccrual		Total
Commercial real estate	$	3,298	$	—	$	3,298
Commercial and industrial		—		13		13
Total	$	3,298	$	13	$	3,311

Summary of the types of concessions for loans classified as troubled debt restructurings

(Dollars in thousands)	December 31,		December 31,
Type of Concession	2019		2018
Deferral of payments	$	22	$	482
Extension of maturity date		2,924		2,829
Total TDR loans	$	2,946	$	3,311

Summary of loans by portfolio segment modified as TDRs and the corresponding recorded investment

	December 31, 2019			December 31, 2018
(Dollars in thousands)	Number of	Recorded		Number of	Recorded
Type	Loans	Investment		Loans	Investment
Commercial real estate	4	$	2,923	6	$	3,527
Commercial and industrial	2		31	1		116
Total	6	$	2,954	7	$	3,643

Schedule of aggregate loan transactions with related parties

	December 31,
(Dollars in thousands)	2019		2018
Beginning balance	$	5,540	$	5,970
New loans and principal advances		1,925		54
Repayments		(1,083)		(484)
Transactions due to changes in related parties		—		—
Ending balance	$	6,382	$	5,540