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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Loans by Portfolio Segment
Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):    
September 30, 2022December 31, 2021
Real estate loans:  
Construction$554,345 $447,860 
1-4 family residential646,692 651,140 
Commercial1,901,921 1,598,172 
Commercial loans433,538 418,998 
Municipal loans449,219 443,078 
Loans to individuals77,780 85,914 
Total loans4,063,495 3,645,162 
Less: Allowance for loan losses36,506 35,273 
Net loans$4,026,989 $3,609,889 
Summary of loans by credit quality indicators and origination year
The following tables set forth the amortized cost basis by class of financing receivable and credit quality indicator for the periods presented (in thousands):
September 30, 2022Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20222021202020192018Prior
Construction real estate:
Pass$127,074 $200,310 $40,301 $9,256 $1,918 $6,813 $165,829 $551,501 
Pass watch— — — — — — — — 
Special mention1,830 305 — — — — — 2,135 
Substandard— — — 389 45 229 — 663 
Doubtful— 46 — — — — — 46 
Total construction real estate$128,904 $200,661 $40,301 $9,645 $1,963 $7,042 $165,829 $554,345 
1-4 family residential real estate:
Pass$91,723 $127,248 $112,796 $68,045 $37,349 $202,116 $2,190 $641,467 
Pass watch— — — — — — — — 
Special mention— — 80 — 1,414 — — 1,494 
Substandard4 — 396 160 184 2,531 42 3,317 
Doubtful— — — — 178 236 — 414 
Total 1-4 family residential real estate$91,727 $127,248 $113,272 $68,205 $39,125 $204,883 $2,232 $646,692 
Commercial real estate:
Pass$664,538 $579,040 $170,699 $138,748 $56,168 $241,718 $11,944 $1,862,855 
Pass watch— 9,434 — — — 1,771 — 11,205 
Special mention— — 1,844 333 116 1,898 — 4,191 
Substandard596 — 285 14,699 263 7,620 — 23,463 
Doubtful— — — 78 — 129 — 207 
Total commercial real estate$665,134 $588,474 $172,828 $153,858 $56,547 $253,136 $11,944 $1,901,921 
Commercial loans:
Pass$105,247 $76,210 $20,852 $9,369 $5,792 $3,680 $164,967 $386,117 
Pass watch217 6 — 247 — — 27,452 27,922 
Special mention— 5,183 34 — 307 — 12,742 18,266 
Substandard— 16 72 122 37 9 74 330 
Doubtful68 328 17 195 240 55 — 903 
Total commercial loans$105,532 $81,743 $20,975 $9,933 $6,376 $3,744 $205,235 $433,538 
Municipal loans:
Pass$49,215 $75,567 $58,288 $56,151 $26,141 $183,857 $— $449,219 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$49,215 $75,567 $58,288 $56,151 $26,141 $183,857 $— $449,219 
Loans to individuals:
Pass$25,795 $24,290 $15,004 $6,515 $1,994 $1,285 $2,838 $77,721 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— 1 — 10 40 4 1 56 
Doubtful— — — — — 3 — 3 
Total loans to individuals$25,795 $24,291 $15,004 $6,525 $2,034 $1,292 $2,839 $77,780 
Total loans$1,066,307 $1,097,984 $420,668 $304,317 $132,186 $653,954 $388,079 $4,063,495 
December 31, 2021Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20212020201920182017Prior
Construction real estate:
Pass$179,521 $82,862 $38,788 $5,666 $2,126 $6,080 $132,592 $447,635 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — 175 — 175 
Doubtful— — — 50 — — — 50 
Total construction real estate$179,521 $82,862 $38,788 $5,716 $2,126 $6,255 $132,592 $447,860 
1-4 family residential real estate:
Pass$141,058 $129,681 $81,607 $47,566 $34,236 $209,470 $2,238 $645,856 
Pass watch— — — — — 777 — 777 
Special mention— 82 — — — — — 82 
Substandard57 403 55 — 295 3,257 88 4,155 
Doubtful— — — — — 270 — 270 
Total 1-4 family residential real estate$141,115 $130,166 $81,662 $47,566 $34,531 $213,774 $2,326 $651,140 
Commercial real estate:
Pass$648,002 $207,370 $209,923 $114,788 $143,350 $209,368 $7,566 $1,540,367 
Pass watch21,669 — 2,163 3,074 374 — — 27,280 
Special mention— 2,062 2,217 119 163 1,877 — 6,438 
Substandard3,299 667 10,830 1,480 — 7,691 — 23,967 
Doubtful— — — — — 120 — 120 
Total commercial real estate$672,970 $210,099 $225,133 $119,461 $143,887 $219,056 $7,566 $1,598,172 
Commercial loans:
Pass$140,628 $51,866 $24,688 $13,204 $2,516 $4,062 $178,263 $415,227 
Pass watch— — 280 22 — — — 302 
Special mention— 57 78 363 — 157 — 655 
Substandard— 283 296 174 16 — 1,457 2,226 
Doubtful7 26 124 359 — 72 — 588 
Total commercial loans$140,635 $52,232 $25,466 $14,122 $2,532 $4,291 $179,720 $418,998 
Municipal loans:
Pass$80,167 $64,803 $61,348 $29,168 $56,274 $151,318 $— $443,078 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$80,167 $64,803 $61,348 $29,168 $56,274 $151,318 $— $443,078 
Loans to individuals:
Pass$40,252 $24,028 $11,813 $4,121 $1,684 $849 $3,052 $85,799 
Pass watch— — — — — — — — 
Special mention— — — 36 — — — 36 
Substandard— 1 24 4 23 10 2 64 
Doubtful— — 1 7 3 4 — 15 
Total loans to individuals$40,252 $24,029 $11,838 $4,168 $1,710 $863 $3,054 $85,914 
Total loans$1,254,660 $564,191 $444,235 $220,201 $241,060 $595,557 $325,258 $3,645,162 
Aging of past due loans by class of loan
The following tables present the aging of the amortized cost basis in past due loans by class of loans (in thousands):
 September 30, 2022
 
30-59 Days
Past Due
60-89 Days
Past Due
Greater than 90 Days Past Due
Total Past
Due
CurrentTotal
Real estate loans:     
Construction$160 $410 $46 $616 $553,729 $554,345 
1-4 family residential1,367 547 516 2,430 644,262 646,692 
Commercial243 422 — 665 1,901,256 1,901,921 
Commercial loans1,094 794 434 2,322 431,216 433,538 
Municipal loans— — — — 449,219 449,219 
Loans to individuals208 — — 208 77,572 77,780 
Total$3,072 $2,173 $996 $6,241 $4,057,254 $4,063,495 
December 31, 2021
30-59 Days Past Due60-89 Days Past DueGreater than 90 Days
Past Due
Total Past
Due
CurrentTotal
Real estate loans:
Construction$82 $58 $— $140 $447,720 $447,860 
1-4 family residential3,226 606 227 4,059 647,081 651,140 
Commercial1,191 — 99 1,290 1,596,882 1,598,172 
Commercial loans1,523 251 537 2,311 416,687 418,998 
Municipal loans170 — — 170 442,908 443,078 
Loans to individuals315 41 8 364 85,550 85,914 
Total$6,507 $956 $871 $8,334 $3,636,828 $3,645,162 
Nonperforming assets by asset class
The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands):
 September 30, 2022December 31, 2021
Nonaccrual loans:
Real estate loans:
Construction$77 $57 
1-4 family residential1,183 969 
Commercial696 668 
Commercial loans1,071 815 
Loans to individuals12 27 
Total nonaccrual loans (1)
3,039 2,536 
Accruing loans past due more than 90 days— — 
TDR loans8,481 9,073 
OREO162 — 
Repossessed assets35 — 
Total nonperforming assets$11,717 $11,609 

(1)    Includes $950,000 and $1.1 million of TDR loans as of September 30, 2022 and December 31, 2021, respectively.
Troubled debt restructurings
The following tables set forth the recorded balance of loans considered to be TDRs that were restructured and the type of concession by class of loans during the periods presented (dollars in thousands):
 Nine Months Ended September 30, 2022
 
Extend Amortization
 Period
Interest Rate ReductionsCombinationTotal ModificationsNumber of Loans
Real estate loans:
1-4 family residential$— $— $307 $307 4 
Commercial loans— — 5 5 1 
Loans to individuals— — 9 9 2 
Total$— $— $321 $321 7 
Three Months Ended September 30, 2021
 
Extend Amortization
 Period
Interest Rate ReductionsCombination Total ModificationsNumber of Loans
Real estate loans:  
1-4 family residential$— $— $219 $219 3 
Commercial— — 453 453 1 
Total$— $— $672 $672 4 
 Nine Months Ended September 30, 2021
 
Extend Amortization
 Period
Interest Rate ReductionsCombinationTotal ModificationsNumber of Loans
Real estate loans:  
1-4 family residential$— $— $344 $344 5 
Commercial— — 453 453 1 
Commercial loans— 16 94 110 3 
Total$— $16 $891 $907 9 
Allowance for loan losses activity by portfolio segment
The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands):
 Three Months Ended September 30, 2022
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,399 $2,024 $27,221 $2,558 $46 $201 $35,449 
Loans charged-off— (66)— (192)— (428)(686)
Recoveries of loans charged-off— 4 — 139 — 306 449 
Net loans (charged-off) recovered— (62)— (53)— (122)(237)
Provision for (reversal of) loan losses136 44 1,273 (272)(2)115 1,294 
Balance at end of period$3,535 $2,006 $28,494 $2,233 $44 $194 $36,506 
 Nine Months Ended September 30, 2022
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,787 $1,866 $26,980 $2,397 $47 $196 $35,273 
Loans charged-off— (66)— (369)— (1,285)(1,720)
Recoveries of loans charged-off1 96 81 469 — 858 1,505 
Net loans (charged-off) recovered1 30 81 100 — (427)(215)
Provision for (reversal of) loan losses(253)110 1,433 (264)(3)425 1,448 
Balance at end of period$3,535 $2,006 $28,494 $2,233 $44 $194 $36,506 
 Three Months Ended September 30, 2021
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$8,018 $2,520 $28,930 $3,097 $47 $301 $42,913 
Loans charged-off— (35)— (508)— (397)(940)
Recoveries of loans charged-off1 4 12 74 — 346 437 
Net loans (charged-off) recovered1 (31)12 (434)— (51)(503)
Provision for (reversal of) loan losses (3,036)(543)(684)(103)(1)(21)(4,388)
Balance at end of period$4,983 $1,946 $28,258 $2,560 $46 $229 $38,022 
Nine Months Ended September 30, 2021
Real Estate
Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$6,490 $2,270 $35,709 $4,107 $46 $384 $49,006 
Loans charged-off— (136)— (943)— (1,183)(2,262)
Recoveries of loans charged-off2 71 13 535 — 904 1,525 
Net loans (charged-off) recovered2 (65)13 (408)— (279)(737)
Provision for (reversal of) loan losses(1,509)(259)(7,464)(1,139)— 124 (10,247)
Balance at end of period$4,983 $1,946 $28,258 $2,560 $46 $229 $38,022