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Loans and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2021
Loans and Leases Receivable Disclosure [Abstract]  
Loans LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
Loans are generally stated at the amount of unpaid principal, reduced by unearned discount and the ACLL. Interest on loans is accrued daily on the outstanding balances.  Loan origination fees and certain direct loan origination costs are deferred and amortized as adjustments of the related loan yield over its contractual life.

Loans

The following table presents the amortized cost of loans held for investment:
Dollars in thousands20212020
Commercial$365,301 $306,885 
Commercial real estate - owner occupied  
Professional & medical150,759 107,151 
Retail190,304 126,451 
Other143,645 118,258 
Commercial real estate - non-owner occupied
Hotels & motels128,450 121,502 
Mini-storage59,045 60,550 
Multifamily233,157 175,988 
Retail162,758 135,405 
Other282,621 192,120 
Construction and development  
Land & land development100,805 107,342 
Construction146,038 91,100 
Residential 1-4 family real estate  
Personal residence262,805 305,093 
Rental - small loan121,989 120,426 
Rental - large loan79,108 74,185 
Home equity72,112 81,588 
Mortgage warehouse lines227,869 251,810 
Consumer31,923 33,906 
Other
Credit cards1,891 1,855 
Overdrafts811 538 
Total loans, net of unearned fees2,761,391 2,412,153 
Less allowance for credit losses - loans32,298 32,246 
Loans, net$2,729,093 $2,379,907 

Accrued interest and fees receivable on loans totaled $7.2 million and $9.1 million at December 31, 2021 and 2020, respectively and is included in accrued interest and fees receivable in the accompany consolidated balance sheets. Included in the totals above are net unamortized loan fees of $4.0 million and $4.4 million at December 31, 2021 and 2020, respectively.

The following presents loan maturities at December 31, 2021:
 WithinAfter 1 butAfter 5 butAfter
Dollars in thousands1 Yearwithin 5 Yearswithin 15 Years15 Years
Commercial$140,478 $144,002 $75,250 $5,571 
Commercial real estate - owner occupied
      Professional & medical2,728 55,306 53,762 38,963 
      Retail6,802 17,896 123,837 41,769 
      Other3,597 15,537 44,704 79,807 
Commercial real estate - non-owner occupied
      Hotels & motels7,531 24,698 34,939 61,282 
      Mini-storage21 1,244 19,327 38,453 
      Multifamily4,384 67,778 56,538 104,457 
      Retail6,933 34,230 72,054 49,541 
      Other2,766 102,906 126,530 50,419 
Construction and development
      Land & land development34,242 32,108 18,318 16,137 
      Construction31,665 47,437 32,279 34,657 
Residential 1-4 family real estate
      Personal residence2,437 9,146 67,853 183,369 
      Rental - small loan7,101 8,163 42,477 64,248 
      Rental - large loan4,302 9,828 16,520 48,458 
      Home equity141 3,239 13,269 55,463 
Mortgage warehouse lines227,869 — — — 
Consumer2,861 22,768 6,100 194 
Other
      Credit cards1,891 — — — 
      Overdrafts811 — — — 
 $488,560 $596,286 $803,757 $872,788 
Loans due after one year with:   
Variable rates $1,439,286  
Fixed rates 833,545  
  $2,272,831  


Past Due Loans and Non-Accrual Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. In determining whether or not a borrower may be unable to meet payment obligations for each class of loans, we consider the borrower’s debt service capacity through the analysis of current financial information, if available, and/or current information with regards to our collateral position. Regulatory provisions would typically require the placement of a loan on non-accrual status if (i) principal or interest has been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection or (ii) full payment of principal and interest is not expected. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income on non-accrual loans is recognized only to the extent that cash payments are received in excess of principal due. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower.
The following tables present the contractual aging of the amortized cost basis of past due loans by class.
 At December 31, 2021
 Past Due 90 days or more and Accruing
Dollars in thousands30-59 days60-89 days90 days or moreTotalCurrent
Commercial$736 $15 $613 $1,364 $363,937 $— 
Commercial real estate - owner occupied      
  Professional & medical409 — — 409 150,350 — 
  Retail— 405 144 549 189,755 — 
  Other208 — 150 358 143,287 — 
Commercial real estate - non-owner occupied
  Hotels & motels— — — — 128,450 — 
  Mini-storage2 — — 2 59,043 — 
  Multifamily— — 55 55 233,102 — 
  Retail66 — 338 404 162,354 — 
  Other— — — — 282,621 — 
Construction and development      
  Land & land development38 7 962 1,007 99,798 — 
  Construction— — — — 146,038 — 
Residential 1-4 family real estate      
  Personal residence2,283 1,211 1,384 4,878 257,927 — 
  Rental - small loan429 247 1,093 1,769 120,220 — 
  Rental - large loan— — — — 79,108 — 
  Home equity236 80 175 491 71,621 — 
Mortgage warehouse lines— — — — 227,869 — 
Consumer98 101 7 206 31,717 — 
Other
Credit cards12 10 4 26 1,865 4 
Overdrafts— — — — 811 — 
Total$4,517 $2,076 $4,925 $11,518 $2,749,873 $4 
 
 At December 31, 2020
 Past Due 90 days or more and Accruing
Dollars in thousands30-59 days60-89 days90 days or moreTotalCurrent
Commercial$60 $— $318 $378 $306,507 $— 
Commercial real estate - owner occupied      
  Professional & medical220 — 457 677 106,474 — 
  Retail54 — 2,259 2,313 124,138 — 
  Other— — 150 150 118,108 — 
Commercial real estate - non-owner occupied
  Hotels & motels— — — — 121,502 — 
  Mini-storage— — — — 60,550 — 
  Multifamily— — — — 175,988 — 
  Retail— — 657 657 134,748 — 
  Other— — 315 315 191,805 — 
Construction and development     
  Land & land development47 — 70 117 107,225 — 
  Construction— — — — 91,100 — 
Residential 1-4 family real estate      
  Personal residence3,750 1,071 1,656 6,477 298,616 — 
  Rental - small loan1,129 487 719 2,335 118,091 — 
  Rental - large loan769 — — 769 73,416 — 
  Home equity758 — 197 955 80,633 — 
Mortgage warehouse lines— — — — 251,810 — 
Consumer190 44 72 306 33,600 — 
Other
Credit cards5 — 2 7 1,848 2 
Overdrafts— — — — 538 — 
Total$6,982 $1,602 $6,872 $15,456 $2,396,697 $2 

The amount of interest recognized on nonaccrual loans during the periods presented is immaterial.

The following tables present the nonaccrual loans included in the net balance of loans.
December 31,December 31,
20212020
Dollars in thousandsNonaccrualNonaccrual
with No
Allowance for
Credit Losses
- Loans		NonaccrualNonaccrual
with No
Allowance for
Credit Losses
- Loans
Commercial$740 $96 $525 $— 
Commercial real estate - owner occupied  
  Professional & medical— — 536 — 
  Retail775 — 12,193 2,258 
  Other341 — 384 — 
Commercial real estate - non-owner occupied
  Hotels & motels3,085 — — — 
  Mini-storage— — — — 
  Multifamily55 — — — 
  Retail338 — 809 657 
  Other9 — 315 — 
Construction and development  
  Land & land development1,560 — 70 — 
  Construction— — 165 — 
Residential 1-4 family real estate  
  Personal residence2,504 — 3,424 — 
  Rental - small loan3,094 — 1,603 108 
  Rental - large loan— — — — 
  Home equity174 — 236 — 
Mortgage warehouse lines— — — — 
Consumer17 — 73 — 
Other
Credit cards— — — — 
Overdrafts— — — — 
Total$12,692 $96 $20,333 $3,023 

Troubled Debt Restructurings. The restructuring of a loan is considered a troubled debt restructuring (“TDR”) if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules, payment deferrals, reductions in collateral and other actions intended to minimize potential losses.

At December 31, 2021, we had TDRs of $20.9 million, of which $18.7 million were current with respect to restructured contractual payments. At December 31, 2020, our TDRs totaled $24.5 million, of which $20.5 million were current with respect to restructured contractual payments.  There were no commitments to lend additional funds under these restructurings at either balance sheet date.

The following table presents by class the TDRs that were restructured during the years ended December 31, 2021 and 2020. Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate.  TDRs are evaluated individually for allowance for credit loss purposes if the loan balance exceeds $500,000, otherwise, smaller balance TDR loans are included in the pools to determine ACLL.

20212020
Dollars in thousandsNumber of
Modifications		Pre-modification
Recorded
Investment		Post-modification
Recorded
Investment		Number of
Modifications		Pre-modification
Recorded
Investment		Post-modification
Recorded
Investment
Commercial real estate - owner occupied
  Other
— $— $— 1 $361 $361 
Residential 1-4 family real estate
  Personal residence
4 294 294 1 48 48 
  Rental - small loan
— — — 1 399 399 
Total4 $294 $294 3 $808 $808 
The following tables present defaults during the stated period of TDRs that were restructured during the prior 12 months. For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period.

20212020
Dollars in thousandsNumber
of
Defaults		Recorded
Investment
at Default Date		Number
of
Defaults		Recorded
Investment
at Default Date
Commercial real estate - owner occupied
Other— $— 1 $361 
Residential 1-4 family real estate
Personal residence1 44 1 48 
Rental - small loan— — 1 399 
Total1 $44 3 $808 

Credit Quality Indicators: We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk.  We internally grade all commercial loans at the time of loan origination. In addition, we perform an annual loan review on all non-homogenous commercial loan relationships with an aggregate exposure of $5.0 million, at which time these loans are re-graded. We use the following definitions for our risk grades:

Pass: Loans graded as Pass are loans to borrowers of acceptable credit quality and risk. They are higher quality loans that do not fit any of the other categories described below.

Special Mention:  Commercial loans categorized as Special Mention are potentially weak. The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the asset may weaken or inadequately protect our position in the future.

Substandard:   Commercial loans categorized as Substandard are inadequately protected by the borrower’s ability to repay and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the identified weaknesses are not mitigated.

Doubtful:  Commercial loans categorized as Doubtful have all the weaknesses inherent in those loans classified as Substandard, with the added elements that the full collection of the loan is improbable and the possibility of loss is high.

Loss:  Loans classified as loss are considered to be non-collectible and of such little value that their continuance as a bankable asset is not warranted. This does not mean that the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future.

Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. As of December 31, 2021 and 2020, based on the most recent analysis performed, the risk category of loans based on year of origination is as follows:

December 31, 2021
Dollars in thousandsRisk Rating20212020201920182017PriorRevolvi-
ng		Revolving- TermTotal
CommercialPass$123,890 $36,339 $31,116 $5,549 $8,831 $14,061 $141,003 $— $360,789 
Special Mention693 279 69 41 60 539 1,984 — 3,665 
Substandard135 45 110 48 18 7 484 — 847 
Total Commercial124,718 36,663 31,295 5,638 8,909 14,607 143,471 — 365,301 
December 31, 2021
Dollars in thousandsRisk Rating20212020201920182017PriorRevolvi-
ng		Revolving- TermTotal
Commercial Real Estate
   - Owner Occupied
Professional & medicalPass72,417 11,869 7,046 4,595 22,939 27,905 2,366 — 149,137 
Special Mention — 1,146 — — — 187 — — 1,333 
Substandard— 72 — — 217 — — — 289 
Total Professional & Medical72,417 13,087 7,046 4,595 23,156 28,092 2,366 — 150,759 
RetailPass78,780 29,749 33,114 8,813 9,318 25,296 2,464 — 187,534 
Special Mention— — — — — 671 — — 671 
Substandard— — 1,324 — 549 226 — — 2,099 
Total Retail78,780 29,749 34,438 8,813 9,867 26,193 2,464 — 190,304 
OtherPass32,805 30,897 13,216 16,716 7,501 38,796 2,782 — 142,713 
Special Mention59 — — — — 532 — — 591 
Substandard— — — — — 303 38 — 341 
Total Other32,864 30,897 13,216 16,716 7,501 39,631 2,820 — 143,645 
Total Commercial Real Estate -
   Owner Occupied		184,061 73,733 54,700 30,124 40,524 93,916 7,650 — 484,708 
Commercial Real Estate
   - Non-Owner Occupied
Hotels & motelsPass1,736 3,313 32,634 15,949 6,953 20,308 7,531 — 88,424 
Special Mention— — 36,941 — — — — — 36,941 
Substandard— 2,830 — — — 255 — — 3,085 
Total Hotels & Motels1,736 6,143 69,575 15,949 6,953 20,563 7,531 — 128,450 
Mini-storagePass13,294 7,641 9,218 14,209 4,506 10,109 21 — 58,998 
Special Mention— — — — — 47 — — 47 
Total Mini-storage13,294 7,641 9,218 14,209 4,506 10,156 21 — 59,045 
MultifamilyPass55,367 39,105 45,016 23,665 14,629 51,155 3,372 — 232,309 
Special Mention— 582 — — — 43 169 — 794 
Substandard— — — — — 54 — — 54 
Total Multifamily55,367 39,687 45,016 23,665 14,629 51,252 3,541 — 233,157 
RetailPass52,533 42,177 20,763 7,653 6,778 24,958 6,586 — 161,448 
Special Mention— — — — — 972 — — 972 
Substandard— — — — — 338 — — 338 
Total Retail52,533 42,177 20,763 7,653 6,778 26,268 6,586 — 162,758 
OtherPass107,962 82,846 14,211 8,443 11,421 51,587 2,620 — 279,090 
Special Mention— — — 572 — — — — 572 
Substandard— — — — — 2,959 — — 2,959 
Total Other107,962 82,846 14,211 9,015 11,421 54,546 2,620 — 282,621 
Total Commercial Real Estate -
   Non-Owner Occupied		230,892 178,494 158,783 70,491 44,287 162,785 20,299 — 866,031 
December 31, 2021
Dollars in thousandsRisk Rating20212020201920182017PriorRevolvi-
ng		Revolving- TermTotal
Construction and Development
Land & land developmentPass26,671 14,050 20,275 5,627 2,927 21,875 6,721 — 98,146 
Special Mention— 155 117 — — 591 — — 863 
Substandard— — — — — 1,796 — — 1,796 
Total Land & land development26,671 14,205 20,392 5,627 2,927 24,262 6,721 — 100,805 
ConstructionPass64,352 64,022 7,438 1,407 — — 8,320 — 145,539 
Substandard— — — 329 — 170 — — 499 
Total Construction64,352 64,022 7,438 1,736 — 170 8,320 — 146,038 
Total Construction and
   Development		91,023 78,227 27,830 7,363 2,927 24,432 15,041 — 246,843 
Residential 1-4 Family Real Estate
Personal residencePass39,637 34,962 18,974 18,784 14,597 115,384 — — 242,338 
Special Mention— — 184 62 534 10,377 — — 11,157 
Substandard— — 475 847 456 7,532 — — 9,310 
Total Personal Residence39,637 34,962 19,633 19,693 15,587 133,293 — — 262,805 
Rental - small loanPass30,342 13,990 14,093 11,524 6,567 33,936 4,630 — 115,082 
Special Mention229 107 57 250 1 1,579 9 — 2,232 
Substandard— 132 133 374 513 3,388 135 — 4,675 
Total Rental - Small Loan30,571 14,229 14,283 12,148 7,081 38,903 4,774 — 121,989 
Rental - large loanPass34,558 14,069 5,971 5,283 2,790 11,776 1,078 — 75,525 
Special Mention— — — — — 29 — — 29 
Substandard— — — — — 3,554 — — 3,554 
Total Rental - Large Loan34,558 14,069 5,971 5,283 2,790 15,359 1,078 — 79,108 
Home equityPass27 115 11 50 78 1,380 68,293 — 69,954 
Special Mention— — — — — 94 1,399 — 1,493 
Substandard— — — — — 407 258 — 665 
Total Home Equity27 115 11 50 78 1,881 69,950 — 72,112 
Total Residential 1-4 Family Real
   Estate		104,793 63,375 39,898 37,174 25,536 189,436 75,802 — 536,014 
Mortgage warehouse linesPass— — — — — — 227,869 — 227,869 
Total Mortgage Warehouse Lines— — — — — — 227,869 — 227,869 
ConsumerPass14,134 6,333 4,444 1,767 540 1,691 902 — 29,811 
Special Mention904 381 210 66 87 53 11 — 1,712 
Substandard199 96 40 11 3 22 29 — 400 
Total Consumer15,237 6,810 4,694 1,844 630 1,766 942 — 31,923 
December 31, 2021
Dollars in thousandsRisk Rating20212020201920182017PriorRevolvi-
ng		Revolving- TermTotal
Other
Credit cardsPass1,891 — — — — — — — 1,891 
Total Credit Cards1,891 — — — — — — — 1,891 
OverdraftsPass811 — — — — — — — 811 
Total Overdrafts811 — — — — — — — 811 
Total Other2,702 — — — — — — — 2,702 
Total$753,426 $437,302 $317,200 $152,634 $122,813 $486,942 $491,074 $— $2,761,391 
December 31, 2020
Dollars in thousandsRisk Rating20202019201820172016PriorRevolvi-
ng		Revolving- TermTotal
CommercialPass$112,335 $46,323 $20,936 $16,723 $11,087 $12,336 $78,107 $— $297,847 
Special Mention9 38 1,956 77 201 909 407 — 3,597 
Substandard1,039 177 215 29 40 56 3,885 — 5,441 
Total Commercial113,383 46,538 23,107 16,829 11,328 13,301 82,399 — 306,885 
Commercial Real Estate
   - Owner Occupied
Professional & medicalPass19,454 16,414 2,540 26,578 3,322 28,905 3,079 — 100,292 
Special Mention 1,171 — — — — 5,152 — — 6,323 
Substandard79 321 — — 136 — — — 536 
Total Professional & Medical20,704 16,735 2,540 26,578 3,458 34,057 3,079 — 107,151 
RetailPass28,351 28,547 5,238 10,288 6,041 31,087 2,199 — 111,751 
Special Mention— — — 432 3 824 — — 1,259 
Substandard— 10,524 — 157 — 2,360 400 — 13,441 
Total Retail28,351 39,071 5,238 10,877 6,044 34,271 2,599 — 126,451 
OtherPass28,712 13,722 17,699 9,845 13,119 32,486 1,496 — 117,079 
Special Mention— — — — — 694 — — 694 
Substandard— — — — — 444 41 — 485 
Total Other28,712 13,722 17,699 9,845 13,119 33,624 1,537 — 118,258 
Total Commercial Real Estate -
   Owner Occupied		77,767 69,528 25,477 47,300 22,621 101,952 7,215 — 351,860 
Commercial Real Estate
   - Non-Owner Occupied
Hotels & motelsPass3,428 23,821 18,894 9,880 7,389 14,252 3,160 — 80,824 
Special Mention2,994 37,398 — — — 286 — — 40,678 
Total Hotels & Motels6,422 61,219 18,894 9,880 7,389 14,538 3,160 — 121,502 
December 31, 2020
Dollars in thousandsRisk Rating20202019201820172016PriorRevolvi-
ng		Revolving- TermTotal
Mini-storagePass10,159 19,022 15,046 3,986 6,228 4,780 170 — 59,391 
Special Mention— — — — — 50 — — 50 
Substandard— — — — — 1,109 — — 1,109 
Total Mini-storage10,159 19,022 15,046 3,986 6,228 5,939 170 — 60,550 
MultifamilyPass39,814 27,090 27,198 19,294 10,762 47,751 2,844 — 174,753 
Special Mention— — — — — 48 — — 48 
Substandard— 1,187 — — — — — — 1,187 
Total Multifamily39,814 28,277 27,198 19,294 10,762 47,799 2,844 — 175,988 
RetailPass44,359 27,357 11,169 9,361 4,414 30,381 6,502 — 133,543 
Special Mention— — — — 446 540 — — 986 
Substandard— — — 152 — 724 — — 876 
Total Retail44,359 27,357 11,169 9,513 4,860 31,645 6,502 — 135,405 
OtherPass75,272 20,483 24,663 10,626 26,989 28,293 1,794 — 188,120 
Special Mention— — — — — 142 — — 142 
Doubtful— — 576 — — 3,282 — — 3,858 
Total Other75,272 20,483 25,239 10,626 26,989 31,717 1,794 — 192,120 
Total Commercial Real Estate -
   Non-Owner Occupied		176,026 156,358 97,546 53,299 56,228 131,638 14,470 — 685,565 
Construction and Development
Land & land developmentPass27,084 25,468 10,943 4,149 6,370 21,882 9,320 — 105,216 
Special Mention— 70 12 — — 644 — — 726 
Substandard— — 6 — 11 1,383 — — 1,400 
Total Land & land development27,084 25,538 10,961 4,149 6,381 23,909 9,320 — 107,342 
ConstructionPass50,060 34,480 2,833 885 — — 1,325 — 89,583 
Substandard— 1,352 — — — 165 — — 1,517 
Total Construction50,060 35,832 2,833 885 — 165 1,325 — 91,100 
Total Construction and
   Development		77,144 61,370 13,794 5,034 6,381 24,074 10,645 — 198,442 
Residential 1-4 Family Real Estate
Personal residencePass51,120 31,415 27,052 23,069 23,759 126,293 — — 282,708 
Special Mention— 242 131 267 254 12,020 — — 12,914 
Substandard— 46 849 540 126 7,910 — — 9,471 
Total Personal Residence51,120 31,703 28,032 23,876 24,139 146,223 — — 305,093 
December 31, 2020
Dollars in thousandsRisk Rating20202019201820172016PriorRevolvi-
ng		Revolving- TermTotal
Rental - small loanPass18,762 20,113 14,512 10,705 10,941 34,643 4,047 — 113,723 
Special Mention110 253 251 3 192 1,749 62 — 2,620 
Substandard— 1,163 — — 46 2,874 — — 4,083 
Total Rental - Small Loan18,872 21,529 14,763 10,708 11,179 39,266 4,109 — 120,426 
Rental - large loanPass16,926 5,484 9,456 5,323 9,133 20,515 2,188 — 69,025 
Special Mention— 1,430 — — — 32 — — 1,462 
Substandard— — — — — 3,698 — — 3,698 
Total Rental - Large Loan16,926 6,914 9,456 5,323 9,133 24,245 2,188 — 74,185 
Home equityPass429 565 347 502 89 2,174 74,974 — 79,080 
Special Mention— — — 40 — 96 1,596 — 1,732 
Substandard— — 32 28 — 424 292 — 776 
Total Home Equity429 565 379 570 89 2,694 76,862 — 81,588 
Total Residential 1-4 Family Real
   Estate		87,347 60,711 52,630 40,477 44,540 212,428 83,159 — 581,292 
Mortgage warehouse linesPass— — — — — — 251,810 — 251,810 
Total Mortgage Warehouse Lines— — — — — — 251,810 — 251,810 
ConsumerPass12,785 9,257 4,239 1,609 1,237 1,516 822 — 31,465 
Special Mention991 454 214 155 70 49 18 — 1,951 
Substandard245 127 31 6 51 4 26 — 490 
Total Consumer14,021 9,838 4,484 1,770 1,358 1,569 866 — 33,906 
Other
Credit cardsPass1,855 — — — — — — — 1,855 
Total Credit Cards1,855 — — — — — — — 1,855 
OverdraftsPass538 — — — — — — — 538 
Total Overdrafts538 — — — — — — — 538 
Total Other2,393 — — — — — — — 2,393 
Total$548,081 $404,343 $217,038 $164,709 $142,456 $484,962 $450,564 $— $2,412,153 

Industry concentrations: At December 31, 2021 and 2020, we had no concentrations of loans to any single industry in excess of 10% of total loans.

Loans to related parties:  We have had, and may be expected to have in the future, banking transactions in the ordinary course of business with our directors, principal officers, their immediate families and affiliated companies in which they are principal shareholders (commonly referred to as related parties).  These transactions have been, in our opinion, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others.

The following presents the activity with respect to related party loans aggregating $60,000 or more to any one related party (other changes represent additions to and changes in director and executive officer status):
Dollars in thousands20212020
Balance, beginning$55,092 $51,292 
Additions2,677 17,641 
Amounts collected(4,557)(13,992)
Other changes, net— 151 
Balance, ending$53,212 $55,092 


Allowance for Credit Losses - Loans

The ACLL is a valuation allowance, estimated at each balance sheet date in accordance with ASC 326, that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The amount of the ACLL represents our best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectability over the loans’ contractual terms, adjusted for expected prepayments when appropriate (the “life-of-loan” concept). The contractual term excludes expected extensions, renewals and modifications unless (i) management has a reasonable expectation that a troubled debt restructuring will be executed with an individual borrower or (ii) such extension or renewal options are not unconditionally cancellable by us and, in such cases, the borrower is likely to meet applicable conditions and likely to request extension or renewal. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current portfolio-specific risk characteristics, environmental conditions or other relevant factors. The ACLL losses is measured on a collective basis for portfolios of loans when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty, but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.
Expected credit losses are reflected in the ACLL through a charge to provision for credit losses. When we deem all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACLL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACLL when received.
Loan Pools. In calculating the ACLL, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles include the type/purpose of loan, underlying collateral, geographical similarity and historical/expected credit loss patterns. In developing these loan pools for the purposes of modeling expected credit losses, we also analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. We have identified the pools of financial assets with similar risk characteristics for measuring expected credit losses as presented in the table of amortized cost of loans held for investment above.
We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary.

Residential 1-4 family rentals are classified as small loan if the original loan amount is less than $600,000 and classified as large loan if the original loan amount equals or exceeds $600,000.

The Company’s methodology for estimating the ACLL considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodology applies historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. Our methodology reverts to historical loss information immediately when it can no longer develop reasonable and supportable forecasts.

Loss-Rate Method. We use a loss-rate (“cohort”) method to estimate expected credit losses for all loan pools. The cohort method identifies and captures the balances of pooled loans with similar risk characteristics, as of a point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over their remaining lives, or until the loans are “exhausted” (reached an acceptable stage at which a significant majority of all losses are expected to have been recognized).
This method encompasses loan balances for as long as the loans are outstanding, so while significant history is required to represent the life-of-loan concept, this method does not require as much history due to its inclusion of loan balances in multiple cohort periods.
Qualitative Factors. We qualitatively adjust our loan loss rates for risk factors that are not otherwise considered within our model but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factor (“Q-Factor”) adjustments may increase or decrease our estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk.
One Q-Factor adjustment to our loss rates is consideration of reasonable and supportable forecasts of economic conditions. In arriving at a reasonable and supportable economic forecast, we primarily consider the forecasted unemployment rates for the U.S., West Virginia and Virginia as loss drivers for each segmented loan pool. Secondarily, we consider the following forecasted economic data for one or more of our segmented loan pools depending on the nature of the underlying loan pool: housing price indices (U.S., West Virginia & Virginia), single-family housing starts (West Virginia & Virginia), multi-family housing starts (West Virginia & Virginia), personal income growth (U.S., West Virginia & Virginia), U.S. consumer confidence, rental vacancy rates (U.S.), and U.S. percentage change in gross domestic product.
Other risks that we may consider in making Q-Factor adjustments include, among other things, the impact of (i) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (ii) changes in the nature and volume of the loan pools and in the terms of the underlying loans, (iii) changes in the experience, ability, and depth of our lending management and staff, (iv) changes in volume and severity of past due financial assets, the volume of non-accrual assets, and the volume and severity of adversely classified or graded assets, (v) changes in the quality of our credit review function, (vi) changes in the value of the underlying collateral for loans that are non-collateral dependent, (vii) the existence, growth, and effect of any concentrations of credit and (viii) other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters or health pandemics.

Collateral Dependent Loans. We may determine that an individual loan exhibits unique risk characteristics which differentiate it from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis. The fair value of real estate collateral supporting collateral dependent loans is evaluated by appraisal services using a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice.

The following table presents the activity in the ACLL by portfolio segment during 2021 and 2020:
For the Year Ended December 31, 2021
Allowance for Credit Losses - Loans
Dollars in thousandsBeginning
Balance		Provision
for
Credit
Losses -
Loans
Adjustment
for PCD
Acquired
Loans		Charge-
offs		RecoveriesEnding
Balance
Commercial$2,304 $1,112 $— $(222)$24 $3,218 
Commercial real estate - owner occupied
  Professional & medical
954 71 71 (4)— 1,092 
  Retail
3,173 (1,812)— — 1 1,362 
  Other610 (35)— — — 575 
Commercial real estate - non-owner occupied
  Hotels & motels
2,135 397 — — — 2,532 
  Mini-storage
337 (204)— — — 133 
  Multifamily
1,547 265 — — 9 1,821 
  Retail
981 93 — — — 1,074 
  Other
1,104 947 — (233)2 1,820 
Construction and development
  Land & land development
4,084 (628)— — 12 3,468 
  Construction4,648 1,698 — — — 6,346 
Residential 1-4 family real estate
  Personal residence3,559 (548)— (365)119 2,765 
  Rental - small loan2,736 177 20 (189)90 2,834 
  Rental - large loan3,007 (633)— — — 2,374 
  Home equity713 (206)— (26)16 497 
Mortgage warehouse lines
— — — — — — 
Consumer216 (44)— (131)122 163 
Other
  Credit cards17 10 — (16)6 17 
  Overdrafts121 255 — (321)152 207 
Total
$32,246 $915 $91 $(1,507)$553 $32,298 
For the Year Ended December 31, 2020
Allowance for Credit Losses - Loans
Dollars in thousandsBeginning
Balance
Prior to
Adoption of
ASC 326		Impact of
Adoption
of ASC
326		Provision
for
Credit
Losses -
Loans
Adjustment
for PCD
Acquired
Loans		Charge-
offs		RecoveriesEnding
Balance
Commercial$1,221 $1,064 $85 $— $(99)$33 $2,304 
Commercial real estate - owner occupied
  Professional & medical
1,058 (390)1,290 1 (1,005)— 954 
  Retail
820 (272)2,311 152 — 162 3,173 
  Other821 (137)(104)1 — 29 610 
Commercial real estate - non-owner occupied
  Hotels & motels
1,235 (936)1,836 — — — 2,135 
  Mini-storage
485 (311)48 115 — — 337 
  Multifamily
1,534 8 (155)122 — 38 1,547 
  Retail
964 279 (22)101 (343)2 981 
  Other
1,721 (1,394)700 58 — 19 1,104 
Construction and development
  Land & land development
600 2,136 1,202 111 (7)42 4,084 
  Construction242 996 3,159 251 — — 4,648 
Residential 1-4 family real estate
  Personal residence1,275 1,282 980 182 (252)92 3,559 
  Rental - small loan532 1,453 657 96 (140)138 2,736 
  Rental - large loan49 2,884 58 16 — — 3,007 
  Home equity138 308 246 — (24)45 713 
Mortgage warehouse lines
— — — — — — — 
Consumer379 (238)166 — (239)148 216 
Other
  Credit cards— 12 35 — (40)10 17 
  Overdrafts— 182 251 — (460)148 121 
Total
$13,074 $6,926 $12,743 $1,206 $(2,609)$906 $32,246 


The following tables presents, as of December 31, 2021 and 2020 segregated by loan portfolio segment, details of the loan portfolio and the ACLL calculated in accordance with our credit loss accounting methodology for loans described above.
December 31, 2021
Loan BalancesAllowance for Credit Losses - Loans
Dollars in thousandsLoans Individually EvaluatedLoans Collectively Evaluated (1)TotalLoans Individually EvaluatedLoans Collectively EvaluatedTotal
Commercial$177 $365,124 $365,301 $— $3,218 $3,218 
Commercial real estate - owner occupied
  Professional & medical2,073 148,686 150,759 199 893 1,092 
  Retail5,559 184,745 190,304 — 1,362 1,362 
  Other— 143,645 143,645 — 575 575 
Commercial real estate - non-owner occupied
  Hotels & motels3,085 125,365 128,450 669 1,863 2,532 
  Mini-storage1,058 57,987 59,045 — 133 133 
  Multifamily— 233,157 233,157 — 1,821 1,821 
  Retail2,693 160,065 162,758 — 1,074 1,074 
  Other5,726 276,895 282,621 69 1,751 1,820 
Construction and development
  Land & land development2,004 98,801 100,805 723 2,745 3,468 
  Construction— 146,038 146,038 — 6,346 6,346 
Residential 1-4 family real estate
  Personal residence— 262,805 262,805 — 2,765 2,765 
  Rental - small loan1,463 120,526 121,989 436 2,398 2,834 
  Rental - large loan3,162 75,946 79,108 — 2,374 2,374 
  Home equity523 71,589 72,112 — 497 497 
Mortgage warehouse lines— 227,869 227,869 — — — 
Consumer— 31,923 31,923 — 163 163 
Other
Credit cards— 1,891 1,891 — 17 17 
Overdrafts— 811 811 — 207 207 
             Total$27,523 $2,733,868 $2,761,391 $2,096 $30,202 $32,298 

1) Included in the loans collectively evaluated are $19.8 million in fully guaranteed or cash secured loans, which are excluded from the pools collectively evaluated and carry no allowance.
December 31, 2020
Loan BalancesAllowance for Credit Losses - Loans
Dollars in thousandsLoans Individually EvaluatedLoans Collectively Evaluated (1)TotalLoans Individually EvaluatedLoans Collectively EvaluatedTotal
Commercial$4,851 $302,034 $306,885 $8 $2,296 $2,304 
Commercial real estate - owner occupied
  Professional & medical2,171 104,980 107,151 223 731 954 
  Retail17,458 108,993 126,451 2,258 915 3,173 
  Other— 118,258 118,258 — 610 610 
Commercial real estate - non-owner occupied
  Hotels & motels— 121,502 121,502 — 2,135 2,135 
  Mini-storage1,109 59,441 60,550 111 226 337 
  Multifamily1,187 174,801 175,988 135 1,412 1,547 
  Retail3,473 131,932 135,405 — 981 981 
  Other5,857 186,263 192,120 129 975 1,104 
Construction and development
  Land & land development1,891 105,451 107,342 623 3,461 4,084 
  Construction1,352 89,748 91,100 135 4,513 4,648 
Residential 1-4 family real estate
  Personal residence— 305,093 305,093 — 3,559 3,559 
  Rental - small loan1,300 119,126 120,426 102 2,634 2,736 
  Rental - large loan3,288 70,897 74,185 — 3,007 3,007 
  Home equity523 81,065 81,588 — 713 713 
Mortgage warehouse lines— 251,810 251,810 — — — 
Consumer— 33,906 33,906 — 216 216 
Other
Credit cards— 1,855 1,855 — 17 17 
Overdrafts— 538 538 — 121 121 
             Total$44,460 $2,367,693 $2,412,153 $3,724 $28,522 $32,246 

1) Included in the loans collectively evaluated are $83.9 million in fully guaranteed or cash secured loans, which are excluded from the pools collectively evaluated and carry no allowance.

The following table presents the amortized cost basis of collateral dependent loans by loan pool, which are individually evaluated to determine expected credit losses, and the related ACLL allocated to those loans:
December 31, 2021
Dollars in thousandsReal Estate
Secured
Loans		Non-Real Estate
Secured Loans		Total LoansAllowance for Credit Losses
- Loans
Commercial$— $177 $177 $— 
Commercial real estate - owner occupied
  Professional & medical2,073 — 2,073 199 
  Retail5,559 — 5,559 — 
  Other— — — — 
Commercial real estate - non-owner occupied
  Hotels & motels3,085 — 3,085 669 
  Mini-storage1,058 — 1,058 — 
  Multifamily— — — — 
  Retail2,693 — 2,693 — 
  Other5,726 — 5,726 69 
Construction and development
  Land & land development2,004 — 2,004 723 
  Construction— — — — 
Residential 1-4 family real estate
  Personal residence— — — — 
  Rental - small loan1,463 — 1,463 436 
  Rental - large loan3,162 — 3,162 — 
  Home equity523 — 523 — 
Consumer— — — — 
Other
Credit cards— — — — 
Overdrafts— — — — 
             Total$27,346 $177 $27,523 $2,096 
December 31, 2020
Dollars in thousandsReal Estate
Secured
Loans		Non-Real Estate
Secured Loans		Total LoansAllowance for Credit Losses
- Loans
Commercial$— $4,851 $4,851 $8 
Commercial real estate - owner occupied
  Professional & medical2,171 — 2,171 223 
  Retail17,458 — 17,458 2,258 
  Other— — — — 
Commercial real estate - non-owner occupied
  Hotels & motels— — — — 
  Mini-storage1,109 — 1,109 111 
  Multifamily1,187 — 1,187 135 
  Retail3,473 — 3,473 — 
  Other5,857 — 5,857 129 
Construction and development
  Land & land development1,891 — 1,891 623 
  Construction1,352 — 1,352 135 
Residential 1-4 family real estate
  Personal residence— — — — 
  Rental - small loan1,300 — 1,300 102 
  Rental - large loan3,288 — 3,288 — 
  Home equity523 — 523 — 
Consumer— — — — 
Other
Credit cards— — — — 
Overdrafts— — — — 
             Total$39,609 $4,851 $44,460 $3,724