XML 35 R26.htm IDEA: XBRL DOCUMENT v3.23.2
Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Loans by Portfolio Segment
Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):    
June 30, 2023December 31, 2022
Real estate loans:  
Construction$657,354 $559,681 
1-4 family residential684,878 663,519 
Commercial2,100,338 1,987,707 
Commercial loans383,724 412,064 
Municipal loans435,211 450,067 
Loans to individuals67,538 74,653 
Total loans4,329,043 4,147,691 
Less: Allowance for loan losses36,303 36,515 
Net loans$4,292,740 $4,111,176 
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):
June 30, 2023Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20232022202120202019Prior
Construction real estate:
Pass$67,993 $190,372 $177,651 $31,227 $4,291 $6,267 $159,462 $637,263 
Pass watch— 2,444 1,557 — — — 14,785 18,786 
Special mention161 395 — — 9 — — 565 
Substandard— — 136 — — 225 — 361 
Doubtful— — 42 — 337 — — 379 
Total construction real estate$68,154 $193,211 $179,386 $31,227 $4,637 $6,492 $174,247 $657,354 
Current period gross charge-offs$— $63 $— $— $— $— $— $63 
1-4 family residential real estate:
Pass$25,409 $105,843 $144,970 $122,025 $66,539 $212,648 $2,205 $679,639 
Pass watch— — — 1,099 — 1,364 — 2,463 
Special mention— — 63 206 123 2,150 — 2,542 
Substandard— — — — — 234 — 234 
Doubtful— — — — — — — — 
Total 1-4 family residential real estate$25,409 $105,843 $145,033 $123,330 $66,662 $216,396 $2,205 $684,878 
Current period gross charge-offs$— $— $— $— $— $71 $— $71 
Commercial real estate:
Pass$268,423 $756,424 $524,837 $152,119 $98,968 $224,529 $15,889 $2,041,189 
Pass watch15,690 — 265 — 7,964 11,563 — 35,482 
Special mention2,019 — — — 223 188 — 2,430 
Substandard— — 100 274 14,304 6,386 — 21,064 
Doubtful— — — — 72 101 — 173 
Total commercial real estate$286,132 $756,424 $525,202 $152,393 $121,531 $242,767 $15,889 $2,100,338 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial loans:
Pass$36,239 $88,384 $57,919 $14,309 $5,897 $5,441 $161,472 $369,661 
Pass watch26 193 134 — — — 200 553 
Special mention— 180 4,890 23 — 249 6,709 12,051 
Substandard168 395 87 — 61 8 20 739 
Doubtful— 328 164 — 75 153 — 720 
Total commercial loans$36,433 $89,480 $63,194 $14,332 $6,033 $5,851 $168,401 $383,724 
Current period gross charge-offs$— $290 $29 $22 $23 $5 $— $369 
Municipal loans:
Pass$11,835 $62,834 $72,572 $52,677 $44,579 $190,714 $— $435,211 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$11,835 $62,834 $72,572 $52,677 $44,579 $190,714 $— $435,211 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Loans to individuals:
Pass$14,071 $21,029 $15,872 $9,246 $3,284 $1,410 $2,582 $67,494 
Pass watch— — — — — 1 — 1 
Special mention— — — — — — — — 
Substandard— — 17 — 20 — — 37 
Doubtful— — 6 — — — — 6 
Total loans to individuals$14,071 $21,029 $15,895 $9,246 $3,304 $1,411 $2,582 $67,538 
Current period gross charge-offs (1)
$729 $31 $22 $6 $2 $77 $— $867 
Total loans$442,034 $1,228,821 $1,001,282 $383,205 $246,746 $663,631 $363,324 $4,329,043 
Total current period gross charge-offs (1)
$729 $384 $51 $28 $25 $153 $— $1,370 
(1) Includes $729,000 in charged off demand deposit overdrafts reported as 2023 originations.
December 31, 2022Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20222021202020192018Prior
Construction real estate:
Pass$169,652 $184,501 $34,537 $7,091 $1,844 $6,434 $152,530 $556,589 
Pass watch299 — — — — — — 299 
Special mention1,858 290 — — — — — 2,148 
Substandard— — — 10 42 194 — 246 
Doubtful— 44 — 355 — — — 399 
Total construction real estate$171,809 $184,835 $34,537 $7,456 $1,886 $6,628 $152,530 $559,681 
1-4 family residential real estate:
Pass$82,847 $144,424 $128,666 $70,142 $36,710 $194,490 $2,160 $659,439 
Pass watch— — — — — — — — 
Special mention— — 79 — 1,397 — — 1,476 
Substandard3 — 217 54 32 1,942 43 2,291 
Doubtful— — — — 173 140 — 313 
Total 1-4 family residential real estate$82,850 $144,424 $128,962 $70,196 $38,312 $196,572 $2,203 $663,519 
Commercial real estate:
Pass$798,653 $546,938 $168,607 $136,440 $55,480 $233,509 $12,315 $1,951,942 
Pass watch— 9,219 — — — — — 9,219 
Special mention— — 1,832 330 115 1,849 — 4,126 
Substandard— — 281 14,603 260 6,992 — 22,136 
Doubtful— — — 76 — 208 — 284 
Total commercial real estate$798,653 $556,157 $170,720 $151,449 $55,855 $242,558 $12,315 $1,987,707 
Commercial loans:
Pass$113,678 $68,509 $17,852 $8,249 $4,820 $3,313 $178,951 $395,372 
Pass watch208 13 56 — — — — 277 
Special mention— 5,109 31 — 288 — 9,986 15,414 
Substandard220 116 70 110 12 9 — 537 
Doubtful68 100 — 86 210 — — 464 
Total commercial loans$114,174 $73,847 $18,009 $8,445 $5,330 $3,322 $188,937 $412,064 
Municipal loans:
Pass$65,258 $74,617 $57,147 $47,636 $24,576 $173,919 $— $443,153 
Pass watch— — — 508 403 6,003 — 6,914 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$65,258 $74,617 $57,147 $48,144 $24,979 $179,922 $— $450,067 
Loans to individuals:
Pass$29,579 $21,480 $12,651 $5,261 $1,665 $1,005 $2,935 $74,576 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— 1 — 6 — 2 — 9 
Doubtful7 — — 18 40 3 — 68 
Total loans to individuals$29,586 $21,481 $12,651 $5,285 $1,705 $1,010 $2,935 $74,653 
Total loans$1,262,330 $1,055,361 $422,026 $290,975 $128,067 $630,012 $358,920 $4,147,691 
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):
 June 30, 2023
 
30-59 Days
Past Due
60-89 Days
Past Due
Greater than 90 Days Past Due
Total Past
Due
CurrentTotal
Real estate loans:     
Construction$122 $6 $136 $264 $657,090 $657,354 
1-4 family residential1,406 1,371 585 3,362 681,516 684,878 
Commercial708 143 38 889 2,099,449 2,100,338 
Commercial loans593 416 103 1,112 382,612 383,724 
Municipal loans— — — — 435,211 435,211 
Loans to individuals387 19 — 406 67,132 67,538 
Total$3,216 $1,955 $862 $6,033 $4,323,010 $4,329,043 
December 31, 2022
30-59 Days Past Due60-89 Days Past DueGreater than 90 Days
Past Due
Total Past
Due
CurrentTotal
Real estate loans:
Construction$43 $21 $— $64 $559,617 $559,681 
1-4 family residential3,529 368 214 4,111 659,408 663,519 
Commercial105 153 415 673 1,987,034 1,987,707 
Commercial loans515 277 247 1,039 411,025 412,064 
Municipal loans— — — — 450,067 450,067 
Loans to individuals203 3 40 246 74,407 74,653 
Total$4,395 $822 $916 $6,133 $4,141,558 $4,147,691 
Nonperforming assets by asset class
The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands):
 June 30, 2023December 31, 2022
Nonaccrual loans:
Real estate loans:
Construction$521 $405 
1-4 family residential1,005 848 
Commercial554 762 
Commercial loans930 757 
Loans to individuals7 74 
Total nonaccrual loans (1)
3,017 2,846 
Accruing loans past due more than 90 days— — 
Restructured loans (2)
— 7,849 
OREO— 93 
Repossessed assets42 74 
Total nonperforming assets$3,059 $10,862 

(1)    Includes $314,000 and $897,000 of restructured loans as of June 30, 2023 and December 31, 2022, respectively.
(2) Pursuant to our adoption of ASU 2022-02, effective January 1, 2023, we prospectively discontinued the recognition and measurement guidance previously required on troubled debt restructures. As a result, “restructured” loans as of March 31, 2023 exclude any loan modifications that are performing but would have previously required disclosure as troubled debt restructures.
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 June 30, 2023
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,152 $2,314 $28,721 $1,901 $44 $200 $36,332 
Loans charged-off(63)(22)— (260)— (392)(737)
Recoveries of loans charged-off— 41 1 143 — 245 430 
Net loans (charged-off) recovered(63)19 1 (117)— (147)(307)
Provision for (reversal of) loan losses306 327 (710)233 (7)129 278 
Balance at end of period$3,395 $2,660 $28,012 $2,017 $37 $182 $36,303 
 Six Months Ended June 30, 2023
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,164 $2,173 $28,701 $2,235 $45 $197 $36,515 
Loans charged-off(63)(71)— (369)— (867)(1,370)
Recoveries of loans charged-off1 46 1 203 — 541 792 
Net loans (charged-off) recovered(62)(25)1 (166)— (326)(578)
Provision for (reversal of) loan losses293 512 (690)(52)(8)311 366 
Balance at end of period$3,395 $2,660 $28,012 $2,017 $37 $182 $36,303 
 Three Months Ended June 30, 2022
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,604 $1,982 $27,225 $2,454 $48 $211 $35,524 
Loans charged-off— — — (46)— (433)(479)
Recoveries of loans charged-off1 53 34 114 — 314 516 
Net loans (charged-off) recovered1 53 34 68 — (119)37 
Provision for (reversal of) loan losses (206)(11)(38)36 (2)109 (112)
Balance at end of period$3,399 $2,024 $27,221 $2,558 $46 $201 $35,449 
Six Months Ended June 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— — — (177)— (857)(1,034)
Recoveries of loans charged-off1 92 81 330 — 552 1,056 
Net loans (charged-off) recovered1 92 81 153 — (305)22 
Provision for (reversal of) loan losses(389)66 160 8 (1)310 154 
Balance at end of period$3,399 $2,024 $27,221 $2,558 $46 $201 $35,449