Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022			2021
Commercial and industrial	$	590,049		$	320,827
Paycheck Protection Program		11,967			30,742
Real estate – construction, commercial		183,301			146,523
Real estate – construction, residential		76,599			58,857
Real estate – mortgage, commercial		864,989			701,503
Real estate – mortgage, residential		631,772			493,982
Real estate – mortgage, farmland		6,599			6,173
Consumer		47,423			49,877
Gross loans		2,412,699			1,808,484
Less: deferred loan fees, net of costs		(1,640	)		(906	)
Total	$	2,411,059		$	1,807,578

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, 2022
(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 Loans		Current Loans			Total Loans
Commercial and industrial	$	488	$	279	$	—	$	2,314	$	3,081	$	1,481	$	585,487		$	590,049
Paycheck Protection Program		—		—		—		—		—		—		11,967			11,967
Real estate – construction, commercial		1,136		19		—		714		1,869		—		181,432			183,301
Real estate – construction, residential		1,416		1,204		—		—		2,620		7		73,972			76,599
Real estate – mortgage, commercial		6,199		297		6,234		1,658		14,388		51,223		799,378			864,989
Real estate – mortgage, residential		4,544		231		1,998		5,143		11,916		5,678		614,178			631,772
Real estate – mortgage, farmland		—		75		—		—		75		—		6,524			6,599
Consumer		880		200		28		495		1,603		359		45,461			47,423
Less: deferred loan fees, net of costs		—		—		—		—		—		—		(1,640	)		(1,640	)
Total Loans	$	14,663	$	2,305	$	8,260	$	10,324	$	35,552	$	58,748	$	2,316,759		$	2,411,059

	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 Loans		Current Loans			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 loan fees, net of costs		—		—		—		—		—		—		(906	)		(906	)
Total Loans	$	18,165	$	2,268	$	917	$	15,177	$	36,527	$	84,029	$	1,687,022		$	1,807,578

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)	2022		2021
PCI loans
Outstanding principal balance	$	64,911	$	97,418
Recorded investment		58,748		84,029
Purchased performing loans
Outstanding principal balance		513,461		706,147
Recorded investment		511,752		703,333
Total acquired loans
Outstanding principal balance		578,372		803,565
Recorded investment		570,500		787,362

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.

	December 31,
(Dollars in thousands)	2022			2021
Balance, beginning of period	$	16,849		$	123
Additions		—			10,030
Accretion		(9,410	)		(5,381	)
Reclassification of nonaccretable difference due to improvement in expected cash flows		3,804			1,400
Other changes, net		(71	)		10,677
Balance, end of period	$	11,172		$	16,849

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, 2022
(Dollars in thousands)	30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Current Loans		Total Loans
Commercial and industrial	$	—	$	—	$	1,481	$	1,481
Real estate – construction, commercial		—		—		7		7
Real estate – mortgage, commercial		—		—		51,223		51,223
Real estate – mortgage, residential		354		—		5,324		5,678
Consumer		—		—		359		359
Total PCI Loans	$	354	$	—	$	58,394	$	58,748

	December 31, 2021
(Dollars in thousands)	30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Current Loans		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

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 the dates and for the periods stated.

	December 31,
(Dollars in thousands)	2022			2021			2020
Allowance for loan losses, beginning of period	$	12,121		$	13,827		$	4,572
Charge-offs
Commercial and industrial		(4,779	)		(1,098	)		(6	)
Real estate – construction		(162	)		(195	)		—
Real estate – mortgage		(1,824	)		(125	)		(505	)
Consumer		(1,686	)		(1,123	)		(994	)
Total charge-offs		(8,451	)		(2,541	)		(1,505	)
Recoveries
Commercial and industrial		442			196			41
Real estate – construction		40			—			—
Real estate – mortgage		409			98			8
Consumer		492			424			261
Total recoveries		1,383			718			310
Net charge-offs		(7,068	)		(1,823	)		(1,195	)
Provision for loan losses		17,886			117			10,450
Allowance for loan losses, end of period	$	22,939		$	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, 2022
(Dollars in thousands)	Individually Evaluated for Impairment		Collectively  Evaluated for  Impairment		Total Loan Balances			Related Allowance for Loan Losses
PCI loans:
Commercial and industrial	$	—	$	1,481	$	1,481		$	—
Real estate – construction, commercial		—		7		7			—
Real estate – mortgage, commercial		—		51,223		51,223			3
Real estate – mortgage, residential		—		5,678		5,678			—
Consumer		—		359		359			—
Total PCI loans		—		58,748		58,748			3
Originated and purchased performing loans:
Commercial and industrial		39,247		549,321		588,568			15,272
Real estate – construction, commercial		521		182,773		183,294			1,637
Real estate – construction, residential		—		76,599		76,599			628
Real estate – mortgage, commercial		4,567		809,199		813,766			2,353
Real estate – mortgage, residential		835		625,259		626,094			1,760
Real estate – mortgage, farmland		—		6,599		6,599			4
Consumer		—		47,064		47,064			1,282
Total originated and purchased performing loans		45,170		2,296,814		2,341,984			22,936
Gross loans		45,170		2,355,562		2,400,732			22,939
Less: deferred loan fees, net of costs		—		—		(1,640	)		—
Total	$	45,170	$	2,355,562	$	2,399,092		$	22,939

	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			7,133
Real estate – construction, commercial		527		131,242			131,769			953
Real estate – construction, residential		—		58,857			58,857			395
Real estate – mortgage, commercial		3,194		646,437			649,631			1,403
Real estate – mortgage, residential		1,400		484,961			486,361			1,184
Real estate – mortgage, farmland		—		6,173			6,173			23
Consumer		—		48,998			48,998			913
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

Summary of Impaired Financing Receivables

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

	December 31, 2022						December 31, 2021
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no specific allowance recorded:
Commercial and industrial	$	1,309	$	1,289	$	—	$	—	$	—	$	—
Real estate – construction, commercial		521		521		—		527		527		—
Real estate – mortgage, commercial		4,438		4,404		—		—		—		—
Real estate – mortgage, residential		835		834		—		—		—		—
With an allowance recorded:
Commercial and industrial	$	37,938	$	37,911	$	3,178	$	4,612	$	4,612	$	836
Real estate – mortgage, commercial		129		126		1		3,194		3,849		1
Real estate – mortgage, residential		—		—		—		1,400		1,400		42
Total	$	45,170	$	45,085	$	3,179	$	9,733	$	10,388	$	879

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, 2022
(Dollars in thousands)	Grade 1 Prime		Grade 2 Desirable		Grade 3 Good		Grade 4 Acceptable		Grade 5 Pass/Watch		Grade 6 Special Mention		Grade 7 Substandard		Grade 8 Doubtful		Total
PCI loans:
Commercial and industrial	$	—	$	—	$	—	$	1,369	$	—	$	112	$	—	$	—	$	1,481
Real estate – construction, commercial		—		—		—		7		—		—		—		—		7
Real estate – mortgage, commercial		—		—		—		22,778		26,059		1,700		686		—		51,223
Real estate – mortgage residential		—		—		—		1,453		1,985		—		2,240		—		5,678
Consumer		—		—		—		—		353		—		6		—		359
Total PCI loans		—		—		—		25,607		28,397		1,812		2,932		—		58,748
Originated and purchased performing loans:
Commercial and industrial		318		885		193,144		312,278		38,552		2,834		40,557		—		588,568
Paycheck Protection Program		11,967		—		—		—		—		—		—		—		11,967
Real estate – construction, commercial		—		361		14,223		156,027		8,504		3,365		814		—		183,294
Real estate – construction, residential		—		—		3,110		72,327		1,162		—		—		—		76,599
Real estate – mortgage, commercial		—		2,330		187,648		561,554		54,352		2,048		5,834		—		813,766
Real estate – mortgage residential		—		7,311		233,697		365,511		11,858		—		7,717		—		626,094
Real estate – mortgage, farmland		549		—		1,315		4,609		126		—		—		—		6,599
Consumer		197		—		21,330		24,731		256		—		550		—		47,064
Total originated and purchased performing loans:		13,031		10,887		654,467		1,497,037		114,810		8,247		55,472		—		2,353,951
Gross loans	$	13,031	$	10,887	$	654,467	$	1,522,644	$	143,207	$	10,059	$	58,404	$	—	$	2,412,699
Less: deferred loan fees, net of costs																		(1,640	)
Total																	$	2,411,059

	December 31, 2021
(Dollars in thousands)	Grade 1 Prime		Grade 2 Desirable		Grade 3 Good		Grade 4 Acceptable		Grade 5 Pass/Watch		Grade 6 Special Mention		Grade 7 Substandard		Grade 8 Doubtful		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		—		—		—		—		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		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