Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Loans Held for Investment

The following table presents loans held for investment, including Paycheck Protection Program ("PPP") loans, as of the dates stated.

	December 31,
(Dollars in thousands)	2021			2020
Commercial and industrial	$	320,827		$	123,675
Paycheck Protection Program		30,742			292,068
Real estate – construction, commercial		146,523			54,702
Real estate – construction, residential		58,857			18,040
Real estate – mortgage, commercial		701,503			273,499
Real estate – mortgage, residential		493,982			213,404
Real estate – mortgage, farmland		6,173			3,615
Consumer loans		49,877			41,962
Gross loans		1,808,484			1,020,965
Less: deferred loan fees, net of costs		(906	)		(4,271	)
Total	$	1,807,578		$	1,016,694

Summary of Financing Receivable, Past Due

The following tables present the aging of the recorded investment of loans held for investment as of the dates stated.

	December 31, 2021
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total Past Due & Nonaccrual		PCI		Current			Total Loans
Commercial and industrial	$	2,338	$	—	$	30	$	6,066	$	8,434	$	8,903	$	303,490		$	320,827
Paycheck Protection Program		—		—		—		—		—		—		30,742			30,742
Real estate – construction, commercial		271		—		—		88		359		14,754		131,410			146,523
Real estate – construction, residential		651		98		279		413		1,441		—		57,416			58,857
Real estate – mortgage, commercial		53		—		—		3,024		3,077		51,872		646,554			701,503
Real estate – mortgage, residential		13,950		1,587		359		5,190		21,086		7,621		465,275			493,982
Real estate – mortgage, farmland		—		—		—		—		—		—		6,173			6,173
Consumer		902		583		249		396		2,130		879		46,868			49,877
Less: deferred fees, net of costs		—		—		—		—		—		—		(906	)		(906	)
Total	$	18,165	$	2,268	$	917	$	15,177	$	36,527	$	84,029	$	1,687,022		$	1,807,578

	December 31, 2020
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total Past Due & Nonaccrual		PCI		Current			Total Loans
Commercial and industrial	$	1,117	$	—	$	—	$	1,310	$	2,427	$	—	$	121,248		$	123,675
Paycheck Protection Program		—		—		—		—		—		—		292,068			292,068
Real estate – construction, commercial		—		—		—		—		—		35		54,667			54,702
Real estate – construction, residential		262		—		—		—		262		—		17,778			18,040
Real estate – mortgage, commercial		771		211		—		3,643		4,625		808		268,066			273,499
Real estate – mortgage, residential		1,062		—		46		881		1,989		242		211,173			213,404
Real estate – mortgage, farmland		—		—		—		—		—		—		3,615			3,615
Consumer		935		334		—		714		1,983		—		39,979			41,962
Less: deferred loan fees, net of costs		—		—		—		—		—		—		(4,271	)		(4,271	)
Total	$	4,147	$	545	$	46	$	6,548	$	11,286	$	1,085	$	1,004,323		$	1,016,694

Summary of Acquired Loans Included in Consolidated Statement of Condition

The following table presents the outstanding principal balance and related recorded investment of these acquired loans included in the consolidated balance sheets as of the dates stated.

	December 31,
(Dollars in thousands)	2021		2020
PCI loans
Outstanding principal balance	$	97,418	$	1,278
Carrying amount		84,029		1,085
Purchased performing loans
Outstanding principal balance		706,147		97,301
Carrying amount		703,333		96,317
Total acquired loans
Outstanding principal balance		803,565		98,579
Carrying amount		787,362		97,402

Summary of Changes in Accretable Yield on Purchased Credit Impaired Loans

The following table presents the changes in the accretable yield for PCI loans for the periods stated.

(Dollars in thousands)	2021			2020
Balance, beginning of period	$	123		$	188
Additions		10,030			—
Accretion		(5,381	)		(56	)
Other changes, net		12,077			(9	)
Balance, end of period	$	16,849		$	123

Summary of Investment of PCI loans

The following tables present the aging of the recorded investment of PCI loans as of the dates stated.

	December 31, 2021
(Dollars in thousands)	30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Current		Total Loans
Commercial and industrial	$	—	$	—	$	8,903	$	8,903
Real estate – construction, commercial		—		—		14,754		14,754
Real estate – mortgage, commercial		—		—		51,872		51,872
Real estate – mortgage, residential		147		—		7,474		7,621
Consumer		—		4		875		879
Total PCI loans	$	147	$	4	$	83,878	$	84,029

	December 31, 2020
(Dollars in thousands)	30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Current		Total Loans
Real estate – construction, commercial	$	—	$	—	$	35	$	35
Real estate – mortgage, commercial		224		—		584		808
Real estate – mortgage, residential		35		—		207		242
Total PCI loans	$	259	$	—	$	826	$	1,085

Summary of Allowance for Loans Losses

The following table presents an analysis of the change in the allowance for loans losses by loan type as of and for the periods stated.

	December 31,
(Dollars in thousands)	2021			2020
Allowance for loan losses, beginning of period	$	13,827		$	4,572
Charge-offs:
Commercial and industrial	$	(1,098	)	$	(6	)
Real estate – construction		(195	)		—
Real estate – mortgage		(125	)		(505	)
Consumer loans		(1,123	)		(994	)
Total charge-offs		(2,541	)		(1,505	)
Recoveries:
Commercial and industrial		196			41
Real estate – mortgage		98			8
Consumer loans		424			261
Total recoveries		718			310
Net charge-offs		(1,823	)		(1,195	)
Provision for loan losses		117			10,450
Allowance for loan losses, end of period	$	12,121		$	13,827

Summary of Loan Portfolio Individually and Collectively Evaluated for Impairment

The following tables present the allowance for loan losses and the amount of loans evaluated for impairment, individually and collectively, by loan type as of the dates stated.

	December 31, 2021
(Dollars in thousands)	Individually Evaluated for Impairment		Collectively  Evaluated for  Impairment			Total Loan Balances			Related Allowance for Loan Losses
PCI loans:
Commercial and industrial	$	—	$	8,903		$	8,903		$	—
Real estate – construction, commercial		—		14,754			14,754			—
Real estate – mortgage, commercial		—		51,872			51,872			—
Real estate – mortgage, residential		—		7,621			7,621			117
Consumer		—		879			879			—
Total PCI loans		—		84,029			84,029			117
Originated and purchased performing loans:
Commercial and industrial		4,612		307,312			311,924			2,859
Real estate – construction, commercial		527		131,242			131,769			895
Real estate – construction, residential		—		58,857			58,857			21
Real estate – mortgage, commercial		3,194		646,437			649,631			4,294
Real estate – mortgage, residential		1,400		484,961			486,361			1,376
Real estate – mortgage, farmland		—		6,173			6,173			18
Consumer		—		48,998			48,998			2,541
Total originated and purchased performing loans		9,733		1,683,980			1,693,713			12,004
Gross loans		9,733		1,768,009			1,777,742			12,121
Less: deferred loan fees, net of costs		—		(570	)		(570	)		—
Total	$	9,733	$	1,767,439		$	1,777,172		$	12,121

	December 31, 2020
(Dollars in thousands)	Individually Evaluated for Impairment		Collectively  Evaluated for  Impairment			Total Loan Balances			Related Allowance for Loan Losses
PCI loans:
Real estate – construction, commercial	$	—	$	35		$	35		$	—
Real estate – mortgage, commercial		—		808			808			—
Real estate – mortgage, residential		—		242			242			—
Total PCI loans		—		1,085			1,085			—
Originated and purchased performing loans:
Commercial and industrial		234		123,441			123,675			3,762
Real estate – construction, commercial		—		54,667			54,667			960
Real estate – construction, residential		—		18,040			18,040			150
Real estate – mortgage, commercial		1,645		271,046			272,691			4,215
Real estate – mortgage, residential		452		212,710			213,162			1,481
Real estate – mortgage, farmland		—		3,615			3,615			18
Consumer		—		41,962			41,962			3,241
Total originated and purchased performing loans		2,331		725,481			727,812			13,827
Gross loans		2,331		726,566			728,897			13,827
Less: deferred loan fees, net of costs		—		(736	)		(736	)		—
Total	$	2,331	$	725,830		$	728,161		$	13,827

Summary of Impaired Financing Receivables

The following tables present information related to impaired loans by loan type as of and for the periods presented.

	December 31, 2021
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no specific allowance recorded:
Real estate – construction, commercial	$	527	$	527	$	—	$	535	$	37
With an allowance recorded:
Commercial and industrial		4,612		4,612		836		4,369		260
Real estate – mortgage, commercial		3,194		3,849		1		3,636		70
Real estate – mortgage, residential		1,400		1,400		42		700		23
Total	$	9,733	$	10,388	$	879	$	9,240	$	390

	December 31, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no specific allowance recorded:
Real estate – mortgage, residential	$	1,645	$	2,030	$	—	$	2,091	$	4
Real estate – mortgage, commercial		452		571		—		538		2
With an allowance recorded:
Commercial and industrial		234		234		144		362		—
Total	$	2,331	$	2,835	$	144	$	2,991	$	6

Summary of Accounts Notes Loans and Financing Receivable

The following tables present the Company's loan portfolio (PCI and originated and purchased performing) by internal loan grades as of the dates stated. PPP loans are risk graded strong because they are fully guaranteed by the U.S. government.

	December 31, 2021
(Dollars in thousands)	Grade 1 Strong		Grade 2 Minimal		Grade 3 Acceptable		Grade 4 Satisfactory		Grade 5 Watch		Grade 6 Special Mention		Grade 7 Substandard		Total
PCI loans:
Commercial and industrial	$	—	$	—	$	—	$	1,567	$	2,818	$	2,748	$	1,770	$	8,903
Real estate – construction, commercial		—		—		—		2,423		—		11,010		1,321		14,754
Real estate – mortgage, commercial		—		—		—		2,642		3,892		33,487		11,851		51,872
Real estate – mortgage residential		—		—		—		142		1,657		2,709		3,113		7,621
Consumer loans		—		—		—		—		388		481		10		879
Total PCI loans		—		—		—		6,774		8,755		50,435		18,065		84,029
Originated and purchased performing loans:
Commercial and industrial		291		560		156,519		133,738		11,256		3,180		6,380		311,924
Paycheck Protection Program		30,742		—		—		—		—		—		—		30,742
Real estate – construction, commercial		—		412		28,973		91,900		7,995		1,846		643		131,769
Real estate – construction, residential		—		—		14,610		40,418		3,416		—		413		58,857
Real estate – mortgage, commercial		—		2,382		307,067		283,165		34,750		17,133		5,134		649,631
Real estate – mortgage residential		990		9,218		276,992		180,980		11,107		974		6,100		486,361
Real estate – mortgage, farmland		340		—		1,067		4,766		—		—		—		6,173
Consumer loans		262		3		16,920		30,691		542		—		580		48,998
Total originated and purchased performing loans:		32,625		12,575		802,148		765,658		69,066		23,133		19,250		1,724,455
Gross loans	$	32,625	$	12,575	$	802,148	$	772,432	$	77,821	$	73,568	$	37,315	$	1,808,484
Less: deferred loan fees, net of costs																(906	)
Total															$	1,807,578

	December 31, 2020
(Dollars in thousands)	Grade 1 Strong		Grade 2 Minimal		Grade 3 Acceptable		Grade 4 Satisfactory		Grade 5 Watch		Grade 6 Special Mention		Grade 7 Substandard		Total
PCI loans:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate – construction, commercial		—		—		—		35		—		—		—		35
Real estate – mortgage, commercial		—		—		—		—		—		93		715		808
Real estate – mortgage residential		—		—		40		46		121		35		—		242
Total PCI loans		—		—		40		81		121		128		715		1,085
Originated and purchased performing loans:
Commercial and industrial		844		484		23,828		85,928		7,251		4		5,336		123,675
Paycheck Protection Program		292,068		—		—		—		—		—		—		292,068
Real estate – construction, commercial		—		2,143		19,524		26,289		5,916		218		577		54,667
Real estate – construction, residential		—		—		3,073		8,247		6,458		—		262		18,040
Real estate – mortgage, commercial		—		3,994		128,163		114,977		15,799		2,875		6,883		272,691
Real estate – mortgage residential		—		3,583		101,038		100,555		5,629		123		2,234		213,162
Real estate – mortgage, farmland		444		—		1,175		1,996		—		—		—		3,615
Consumer loans		324		36		17,062		23,311		521		1		707		41,962
Total originated and purchased performing loans:		293,680		10,240		293,863		361,303		41,574		3,221		15,999		1,019,880
Gross loans	$	293,680	$	10,240	$	293,903	$	361,384	$	41,695	$	3,349	$	16,714	$	1,020,965
Less: deferred loan fees, net of costs																(4,271	)
Total															$	1,016,694