Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of Amounts Recognized in Balance Sheet

Loans in the accompanying consolidated balance sheets consisted of the following:

	June 30,			December 31,
(Dollars in thousands)	2022			2021
Real estate loans:
Non-farm non-residential owner occupied	$	508,864		$	383,941
Non-farm non-residential non-owner occupied		464,530			445,308
Residential		273,415			213,264
Construction, development & other		440,925			320,335
Farmland		23,895			9,934
Commercial & industrial		914,845			611,348
Consumer		3,706			4,001
Municipal and other		118,997			80,593
		2,749,177			2,068,724
Allowance for loan losses		(26,666	)		(19,295	)
Loans, net	$	2,722,511		$	2,049,429

Schedule of Non-accrual and Accruing Past Due Loans, Segregated by Class of Loans

Non-accrual loans and accruing loans past due more than 90 days segregated by class of loans were as follows:

	June 30,				December 31,
	2022				2021
(Dollars in thousands)	Non-accrual		Accruing loans past due more than 90 days		Non-accrual		Accruing loans past due more than 90 days
Real estate loans:
Non-farm non-residential owner occupied	$	964	$	—	$	1,008	$	-
Non-farm non-residential non-owner occupied		323		—		346		—
Residential		116		—		127		—
Construction, development & other		232		—		244		—
Farmland		—		—		—		—
Commercial & industrial		8,165		387		8,297		278
Consumer		—		—		—		—
Municipal and other		—		—		—		—
Purchased credit impaired		6		—		8		—
	$	9,806	$	387	$	10,030	$	278

Schedule of Aging Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans, segregated by class of loans, were as follows:

	June 30, 2022
(Dollars in thousands)	30-59 days		60-89 days		Over 90 days		Total past due		Total current		Total loans
Real estate loans:
Non-farm non-residential    owner occupied	$	269	$	—	$	964	$	1,233	$	507,631	$	508,864
Non-farm non-residential    non-owner occupied		191		—		323		514		463,263		463,777
Residential		458		655		116		1,229		272,186		273,415
Construction,    development & other		—		—		232		232		436,614		436,846
Farmland		—		—		—		—		23,895		23,895
Commercial & industrial		4,334		472		8,552		13,358		901,428		914,786
Consumer		2		—		—		2		3,704		3,706
Municipal and other		—		—		—		—		118,997		118,997
Purchased credit impaired		—		—		6		6		4,885		4,891
	$	5,254	$	1,127	$	10,193	$	16,574	$	2,732,603	$	2,749,177

	December 31, 2021
(Dollars in thousands)	30-59 days		60-89 days		Over 90 days		Total past due		Total current		Total loans
Real estate loans:
Non-farm non-residential    owner occupied	$	291	$	—	$	1,008	$	1,299	$	382,642	$	383,941
Non-farm non-residential    non-owner occupied		161		—		346		507		444,079		444,586
Residential		230		—		127		357		212,822		213,179
Construction,    development & other		—		395		244		639		315,584		316,223
Farmland		—		—		—		—		9,934		9,934
Commercial & industrial		960		457		8,575		9,992		601,291		611,283
Consumer		9		—		—		9		3,992		4,001
Municipal and other		18	1			—		19		80,574		80,593
Purchased credit impaired		—		—		8		8		4,976		4,984
	$	1,669	$	853	$	10,308	$	12,830	$	2,055,894	$	2,068,724

Schedule of Impaired Loans by Class of Loans

The following tables present impaired loans by class of loans:

	June 30, 2022
(Dollars in thousands)	Unpaid contractual principal balance		Recorded investment with no allowance		Recorded investment with allowance		Total recorded investment		Related allowance		Average recorded investment during period
Real estate loans:
Non-farm non-residential    owner occupied	$	964	$	964	$	—	$	964	$	—	$	986
Non-farm non-residential    non-owner occupied		5,569		5,563		—		5,563		—		5,596
Residential		119		116		—		116		—		122
Construction,    development & other		229		232		—		232		—		238
Farmland		—		—		—		—		—		—
Commercial & industrial		15,047		7,477		7,574		15,051		1,686		13,504
Consumer		—		—		—		—		—		—
Municipal and other		—		—		—		—		—		—
Purchased credit impaired		58		—		58		58		15		62
	$	21,986	$	14,352	$	7,632	$	21,984	$	1,701	$	20,508

	December 31, 2021
(Dollars in thousands)	Unpaid contractual principal balance		Recorded investment with no allowance		Recorded investment with allowance		Total recorded investment		Related allowance		Average recorded investment during year
Real estate loans:
Non-farm non-residential    owner occupied	$	1,008	$	1,008	$	—	$	1,008	$	—	$	1,051
Non-farm non-residential    non-owner occupied		5,641		5,630		—		5,630		—		5,680
Residential		130		127		—		127		—		138
Construction,    development & other		241		244		—		244		—		255
Farmland		—		—		—		—		—		—
Commercial & industrial		8,297		7,331		967		8,298		290		9,117
Consumer		—		—		—		—		—		—
Other		—		—		—		—		—		—
Purchased credit impaired		65		—		65		65		17		71
	$	15,382	$	14,340	$	1,032	$	15,372	$	307	$	16,312

Summary of Troubled Debt Restructuring

During the six months ended June 30, 2022, the terms of one loan were modified as a troubled debt restructuring (“TDR”). The terms of three loans were modified as TDRs prior to December 31, 2021. The following table presents modifications of loans the Company considers to be TDR loans:

	June 30, 2022
	Loan modifications
(Dollars in thousands)	Number  of  loans		Pre- restructuring recorded investment		Post- restructuring recorded investment		Adjusted interest rate		Payment deferral		Combined rate and payment deferral
Real estate loans:
Non-farm non-residential    owner occupied		3	$	851	$	851	$	—	$	851	$	—
Non-farm non-residential    non-owner occupied		—		—		—		—		—		—
Residential		—		—		—		—		—		—
Construction,    development & other		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Commercial & industrial		1		785		785		—		785		—
Consumer		—		—		—		—		—		—
Municipal and other		—		—		—		—		—		—
		4	$	1,636	$	1,636	$	—	$	1,636	$	—
	December 31, 2021
	Loan modifications
(Dollars in thousands)	Number of loans		Pre- restructuring recorded investment		Post- restructuring recorded investment		Adjusted interest rate		Payment deferral		Combined rate and payment deferral
Real estate loans:
Non-farm non-residential    owner occupied		3	$	927	$	927	$	—	$	927	$	—
Non-farm non-residential    non-owner occupied		—		—		—		—		—		—
Residential		—		—		—		—		—		—
Construction,    development & other		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Commercial & industrial		2		758		758		—		758		—
Consumer		—		—		—		—		—		—
Municipal and other		—		—		—		—		—		—
		5	$	1,685	$	1,685	$	—	$	1,685	$	—

Summary of Internal Ratings of Loans

The following tables summarize the Company’s internal ratings of its loans:

	June 30, 2022
(Dollars in thousands)	Pass		Special Mention		Substandard		Purchased Credit Impaired		Doubtful		Total
Real estate loans:
Non-farm non-residential    owner occupied	$	497,740	$	4,618	$	6,506	$	—	$	—	$	508,864
Non-farm non-residential    non-owner occupied		456,855		—		6,922		753		—		464,530
Residential		272,370		—		1,045		—		—		273,415
Construction,    development & other		436,614		—		232		4,079		—		440,925
Farmland		23,895		—		—		—		—		23,895
Commercial & industrial		909,153		427		5,206		59		—		914,845
Consumer		3,685		21		—		—		—		3,706
Municipal and other		118,997		—		—		—		—		118,997
	$	2,719,309	$	5,066	$	19,911	$	4,891	$	—	$	2,749,177

	December 31, 2021
(Dollars in thousands)	Pass		Special Mention		Substandard		Purchased Credit Impaired		Doubtful		Total
Real estate loans:
Non-farm non-residential    owner occupied	$	370,062	$	6,953	$	6,926	$	—	$	—	$	383,941
Non-farm non-residential    non-owner occupied		428,972		8,338		7,276		722		—		445,308
Residential		212,109		—		1,069		86		—		213,264
Construction,    development & other		315,979		—		244		4,112		—		320,335
Farmland		9,934		—		—		—		—		9,934
Commercial & industrial		605,322		1,146		4,816		64		—		611,348
Consumer		3,979		22		—		—		—		4,001
Municipal and other		80,593		—		—		—		—		80,593
	$	2,026,950	$	16,459	$	20,331	$	4,984	$	—	$	2,068,724

Schedule of Allowance for Loan Losses

The following tables detail the activity in the allowance for loan losses by portfolio segment:

	For the Six Months Ended June 30, 2022
(Dollars in thousands)	Beginning balance		Provision for loan losses			Charge-offs		Recoveries		Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	3,456	$	596		$	—	$	—	$	4,052
Non-farm non-residential    non-owner occupied		5,935		(649	)		—		—		5,286
Residential		957		(130	)		—		—		827
Construction, development & other		2,064		199			—		—		2,263
Farmland		45		24			—		—		69
Commercial & industrial		6,500		7,346			—		8		13,854
Consumer		6		(15	)		—		13		4
Municipal and other		332		(21	)		—		—		311
	$	19,295	$	7,350		$	—	$	21	$	26,666

	For the Six Months Ended June 30, 2021
(Dollars in thousands)	Beginning balance		Provision for loan losses			Charge-offs			Recoveries		Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	2,608	$	1,328		$	—		$	—	$	3,936
Non-farm non-residential    non-owner occupied		3,107		1,223			—			—		4,330
Residential		1,218		(168	)		—			—		1,050
Construction, development & other		932		(250	)		—			—		682
Farmland		32		2			—			—		34
Commercial & industrial		3,858		(595	)		(170	)		99		3,192
Consumer		35		(27	)		—			2		10
Municipal and other		189		(13	)		(18	)		2		160
	$	11,979	$	1,500		$	(188	)	$	103	$	13,394

	For the Three Months Ended June 30, 2022
(Dollars in thousands)	Beginning balance		Provision for loan losses			Charge-offs		Recoveries		Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	4,087	$	(35	)	$	—	$	—	$	4,052
Non-farm non-residential    non-owner occupied		5,613		(327	)		—		—		5,286
Residential		766		61			—		—		827
Construction, development & other		2,324		(61	)		—		—		2,263
Farmland		44		25			—		—		69
Commercial & industrial		10,173		3,677			—		4		13,854
Consumer		5		(1	)		—		—		4
Municipal and other		300		11			—		—		311
	$	23,312	$	3,350		$	—	$	4	$	26,666

	For the Three Months Ended June 30, 2021
(Dollars in thousands)	Beginning balance		Provision for loan losses			Charge-offs			Recoveries		Ending balance
Real estate loans:
Non-farm non-residential    owner occupied	$	4,152	$	(216	)	$	—		$	—	$	3,936
Non-farm non-residential    non-owner occupied		4,132		198			—			—		4,330
Residential		938		112			—			—		1,050
Construction, development & other		702		(20	)		—			—		682
Farmland		32		2			—			—		34
Commercial & industrial		3,323		(57	)		(170	)		96		3,192
Consumer		12		(4	)		—			2		10
Municipal and other		180		(15	)		(5	)		—		160
	$	13,471	$	—		$	(175	)	$	98	$	13,394

Schedule of Allowance for Loan Losses for Loans Evaluated for Impairment Individually and Collectively

The following tables summarize the allocation of the allowance for loan losses, by portfolio segment, for loans evaluated for impairment individually and collectively:

	June 30, 2022
	Period end amounts of ALLL allocated to loans evaluated for impairment:
(Dollars in thousands)	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	—	$	4,052	$	—	$	4,052
Non-farm non-residential non-owner occupied		—		5,286		—		5,286
Residential		—		827		—		827
Construction, development & other		—		2,263		—		2,263
Farmland		—		69		—		69
Commercial & industrial		1,686		12,153		15		13,854
Consumer		—		4		—		4
Municipal and other		—		311		—		311
	$	1,686	$	24,965	$	15	$	26,666

	December 31, 2021
	Period end amounts of ALLL allocated to loans evaluated for impairment:
(Dollars in thousands)	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	—	$	3,456	$	—	$	3,456
Non-farm non-residential non-owner occupied		—		5,935		—		5,935
Residential		—		957		—		957
Construction, development & other		—		2,064		—		2,064
Farmland		—		45		—		45
Commercial & industrial		290		6,193		17		6,500
Consumer		—		6		—		6
Municipal and other		—		332		—		332
	$	290	$	18,988	$	17	$	19,295

Schedule Of Allowance for Loan losses For loans evaluated for Impairment Methodology

The Company’s recorded investment in loans related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows:

	June 30, 2022
	Loans evaluated for impairment:
(Dollars in thousands)	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	964	$	507,900	$	—	$	508,864
Non-farm non-residential non-owner occupied		5,563		458,967		—		464,530
Residential		116		273,299		—		273,415
Construction, development & other		232		440,693		—		440,925
Farmland		—		23,895		—		23,895
Commercial & industrial		15,051		899,736		58		914,845
Consumer		—		3,706		—		3,706
Municipal and other		—		118,997		—		118,997
	$	21,926	$	2,727,193	$	58	$	2,749,177

	December 31, 2021
	Loans evaluated for impairment:
(Dollars in thousands)	Individually		Collectively		PCI		Total
Real estate loans:
Non-farm non-residential owner occupied	$	1,008	$	382,933		—	$	383,941
Non-farm non-residential non-owner occupied		5,630		439,678		—		445,308
Residential		127		213,137		—		213,264
Construction, development & other		244		320,091		—		320,335
Farmland		—		9,934		—		9,934
Commercial & industrial		8,298		602,985		65		611,348
Consumer		—		4,001		—		4,001
Municipal and other		—		80,593		—		80,593
	$	15,307	$	2,053,352	$	65	$	2,068,724

Schedule of Gross Contractual Amounts Receivable Balances By Portfolio Segment PCI Loans

The following table presents the gross contractual amounts receivable balances, by portfolio segment, and the carrying amount of PCI loans:

	June 30,		December 31,
(Dollars in thousands)	2022		2021
Real estate loans:
Non-farm non-residential owner occupied	$	—	$	—
Non-farm non-residential non-owner occupied		784		820
Residential		83		181
Construction, development & other		5,114		5,169
Farmland		—		—
Commercial & industrial		60		66
Consumer		—		—
Municipal and other		—		—
Total outstanding balances	$	6,041	$	6,236
Carrying amount	$	4,891	$	4,984

Schedule of Accretable Yield Collected on PCI Loans

Accretable yield, or income expected to be collected on PCI loans was as follows:

	June 30,			December 31,
(Dollars in thousands)	2022			2021
Balance at beginning of year	$	926		$	2,261
Accretion of income		(88	)		(1,335	)
Balance at end of period	$	838		$	926