Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Changes In Allowance For Loan Losses

Changes in the allowance for loan losses for the years ended December 31, 2022 and 2021 were as follows:

	December 31,
	2022			2021
	(in thousands)
Balance, beginning	$	8,787		$	7,096
Provision charged to operating expense		1,830			1,483
Recoveries added to the allowance		1,260			318
Loan losses charged to the allowance		(659	)		(110	)
Balance, ending	$	11,218		$	8,787

Nonaccrual And Past Due Loans By Class

Nonaccrual and past due loans by class at December 31, 2022 and December 31, 2021 were as follows:

	December 31, 2022
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	15	$	—	$	73	$	88	$	247,571	$	247,659	$	—	$	73
Commercial Real Estate:
Owner Occupied		—		—		—		—		232,115		232,115		—		—
Non-owner occupied		—		—		—		—		275,520		275,520		—		1,356
Construction and Farmland:
Residential		—		—		—		—		11,256		11,256		—		21
Commercial		—		—		101		101		78,294		78,395		—		376
Consumer:
Installment		56		—		146		202		116,908		117,110		146		—
Residential:
Equity Lines		149		—		—		149		43,439		43,588		—		155
Single family		222		—		211		433		257,737		258,170		172		181
Multifamily		—		—		—		—		39,806		39,806		—		—
All Other Loans		—		—		—		—		12,721		12,721		—		—
Total	$	442	$	—	$	531	$	973	$	1,315,367	$	1,316,340	$	318	$	2,162
	December 31, 2021
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	8	$	7	$	—	$	15	$	143,363	$	143,378	$	—	$	—
Commercial Real Estate:
Owner Occupied		—		—		—		—		188,839		188,839		—		124
Non-owner occupied		146		—		130		276		187,936		188,212		—		1,547
Construction and Farmland:
Residential		—		—		—		—		10,077		10,077		—		—
Commercial		—		126		108		234		74,590		74,824		—		234
Consumer:
Installment		6		—		—		6		67,275		67,281		—		3
Residential:
Equity Lines		13		—		—		13		35,849		35,862		—		29
Single family		409		238		434		1,081		226,780		227,861		43		786
Multifamily		—		—		—		—		29,093		29,093		—		—
All Other Loans		—		—		—		—		16,798		16,798		—		—
Total	$	582	$	371	$	672	$	1,625	$	980,600	$	982,225	$	43	$	2,723

Allowance For Loan Losses By Segment

Allowance for loan losses by segment as of and for the years ended December 31, 2022 and December 31, 2021 were as follows:

	December 31, 2022
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate			Commercial			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	2,794		$	1,750		$	1,650		$	1,656		$	646		$	291		$	—	$	8,787
Charge-Offs		—			(9	)		—			(300	)		(79	)		(271	)		—		(659	)
Recoveries		9			888			197			109			44			13			—		1,260
Provision		(89	)		(782	)		262			1,471			529			439			—		1,830
Ending balance	$	2,714		$	1,847		$	2,109		$	2,936		$	1,140		$	472		$	—	$	11,218
Ending balance: Individually evaluated for impairment	$	—		$	27		$	—		$	73		$	—		$	—		$	—	$	100
Ending balance: collectively evaluated for impairment	$	2,714		$	1,820		$	2,109		$	2,863		$	1,140		$	472		$	—	$	11,118
Loans:
Ending balance	$	89,651		$	341,564		$	507,635		$	247,659		$	117,110		$	12,721		$	—	$	1,316,340
Ending balance individually evaluated for impairment	$	1,044		$	3,719		$	1,695		$	141		$	22		$	—		$	—	$	6,621
Ending balance collectively evaluated for impairment	$	88,607		$	337,845		$	505,940		$	247,518		$	117,088		$	12,721		$	—	$	1,309,719
	December 31, 2021
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate			Commercial			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	1,604		$	1,929		$	1,645		$	1,374		$	198		$	346		$	—	$	7,096
Charge-Offs		—			(13	)		—			(10	)		(19	)		(68	)		—		(110	)
Recoveries		12			240			7			18			29			12			—		318
Provision		1,178			(406	)		(2	)		274			438			1			—		1,483
Ending balance	$	2,794		$	1,750		$	1,650		$	1,656		$	646		$	291		$	—	$	8,787
Ending balance: Individually evaluated for impairment	$	—		$	39		$	—		$	—		$	—		$	—		$	—	$	39
Ending balance: collectively evaluated for impairment	$	2,794		$	1,711		$	1,650		$	1,656		$	646		$	291		$	—	$	8,748
Loans:
Ending balance	$	84,901		$	292,816		$	377,051		$	143,378		$	67,281		$	16,798		$	—	$	982,225
Ending balance individually evaluated for impairment	$	257		$	2,778		$	2,295		$	108		$	16		$	—		$	—	$	5,454
Ending balance collectively evaluated for impairment	$	84,644		$	290,038		$	374,756		$	143,270		$	67,265		$	16,798		$	—	$	976,771

Impaired Loans By Class

Impaired loans by class at December 31, 2022 and December 31, 2021 were as follows:

	As of
	December 31, 2022
	(in thousands)
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	81	$	68	$	—	$	89	$	5
Commercial Real Estate:
Owner Occupied		205		200		—		207		11
Non-owner occupied		1,755		1,495		—		1,499		9
Construction and Farmland:
Residential		22		21		—		157		4
Commercial		1,045		1,026		—		1,045		13
Consumer:
Installment		24		22		—		25		2
Residential
Equity lines		159		155		—		157		5
Single family		3,161		3,060		—		3,115		111
Multifamily		—		—		—		—		—
Other Loans		—		—		—		—		—
	$	6,452	$	6,047	$	—	$	6,294	$	159
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	77	$	73	$	73	$	73	$	—
Commercial Real Estate:
Owner Occupied		—		—		—		—		—
Non-owner occupied		—		—		—		—		—
Construction and Farmland:
Residential		—		—		—		—		—
Commercial		—		—		—		—		—
Consumer:
Installment		—		—		—		—		—
Residential
Equity lines		—		—		—		—		—
Single family		516		516		27		527		21
Multifamily		—		—		—		—		—
Other Loans		—		—		—		—		—
	$	593	$	589	$	100	$	600	$	21
Total:
Commercial	$	158	$	141	$	73	$	162	$	5
Commercial Real Estate		1,960		1,695		—		1,706		20
Construction and Farmland		1,067		1,047		—		1,202		17
Consumer		24		22		—		25		2
Residential		3,836		3,731		27		3,799		137
Other		—		—		—		—		—
Total	$	7,045	$	6,636	$	100	$	6,894	$	180

(1)Recorded investment is defined as the summation of the outstanding principal balance, accrued interest, and any partial charge-offs.

	As of
	December 31, 2021
	(in thousands)
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	143	$	109	$	—	$	166	$	11
Commercial Real Estate:
Owner Occupied		148		124		—		142		—
Non-owner occupied		2,539		2,177		—		2,186		—
Construction and Farmland:
Residential		—		—		—		—		—
Commercial		271		257		—		267		9
Consumer:
Installment		17		16		—		19		1
Residential
Equity lines		35		29		—		32		—
Single family		2,088		1,974		—		2,012		62
Multifamily		—		—		—		—		—
Other Loans		—		—		—		—		—
	$	5,241	$	4,686	$	—	$	4,824	$	83
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate:
Owner Occupied		—		—		—		—		—
Non-owner occupied		—		—		—		—		—
Construction and Farmland:
Residential		—		—		—		—		—
Commercial		—		—		—		—		—
Consumer:
Installment		—		—		—		—		—
Residential
Equity lines		—		—		—		—		—
Single family		811		787		39		802		30
Multifamily		—		—		—		—		—
Other Loans		—		—		—		—		—
	$	811	$	787	$	39	$	802	$	30
Total:
Commercial	$	143	$	109	$	—	$	166	$	11
Commercial Real Estate		2,687		2,301		—		2,328		—
Construction and Farmland		271		257		—		267		9
Consumer		17		16		—		19		1
Residential		2,934		2,790		39		2,846		92
Other		—		—		—		—		—
Total	$	6,052	$	5,473	$	39	$	5,626	$	113

(1)Recorded investment is defined as the summation of the outstanding principal balance, accrued interest, and any partial charge-offs.

Credit Quality Information By Class

Credit quality information by class at December 31, 2022 and December 31, 2021 was as follows:

	As of
	December 31, 2022
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	247,061	$	526	$	72	$	—	$	—	$	247,659
Commercial Real Estate:
Owner Occupied		212,074		20,020		21		—		—		232,115
Non-owner occupied		257,625		16,189		1,706		—		—		275,520
Construction and Farmland:
Residential		11,235		—		21		—		—		11,256
Commercial		69,427		153		8,815		—		—		78,395
Residential:
Equity Lines		43,124		310		154		—		—		43,588
Single family		251,247		5,972		951		—		—		258,170
Multifamily		39,806		—		—		—		—		39,806
All other loans		12,721		—		—		—		—		12,721
Total	$	1,144,320	$	43,170	$	11,740	$	—	$	—	$	1,199,230
									Performing		Nonperforming
Consumer Credit Exposure by Payment Activity									$	116,908	$	202
	As of
	December 31, 2021
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	143,197	$	176	$	5	$	—	$	—	$	143,378
Commercial Real Estate:
Owner Occupied		185,978		2,703		158		—		—		188,839
Non-owner occupied		180,830		4,819		2,563		—		—		188,212
Construction and Farmland:
Residential		10,077		—		—		—		—		10,077
Commercial		59,318		15,198		308		—		—		74,824
Residential:
Equity Lines		35,832		—		30		—		—		35,862
Single family		224,510		1,601		1,633		117		—		227,861
Multifamily		26,952		2,141		—		—		—		29,093
All other loans		16,798		—		—		—		—		16,798
Total	$	883,492	$	26,638	$	4,697	$	117	$	—	$	914,944
									Performing		Nonperforming
Consumer Credit Exposure by Payment Activity									$	67,275	$	6