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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of Summary of Loans, by Major Class Within the Company's Loan Portfolio
Major classifications within the Company’s held for investment loan portfolio at September 30, 2022 and December 31, 2021 is as follows:
(in thousands)September 30, 2022December 31, 2021
Commercial, financial, and agricultural(a)
$248,913 $217,214 
Real estate construction − residential25,24327,920
Real estate construction − commercial133,18691,369
Real estate mortgage − residential343,661279,346
Real estate mortgage − commercial717,192663,256
Installment and other consumer23,80223,028
Total loans held for investment$1,491,997 $1,302,133 
(a)Includes $0.6 million and $8.4 million of Small Business Administration Paycheck Protection (PPP) loans, net as of September 30, 2022 and December 31, 2021, respectively.
Schedule of Summary of the Allowance for Loan Losses
The following table illustrates the changes in the allowance for loan losses by portfolio segment:
Three Months Ended September 30, 2022
(in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$3,005 $66 $762 $2,747 $8,410 $312 $51 $15,353 
Additions:
Provision for (release of ) loan losses(124)587481(414)129136300
Deductions:
Loans charged off46———(1)146—191
Less recoveries on loans(13)——(4)(5)(21)(43)
Net loan charge-offs (recoveries)33——(4)(6)125—148
Balance at end of period$2,848 $71 $849 $3,232 $8,002 $316 $187 $15,505 
Three Months Ended September 30, 2021
(in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$5,336 $251 $495 $2,467 $9,915 $252 $19 $18,735 
Additions:
Provision for (release of ) loan losses(609)(16)(70)21678059(60)300
Deductions:
Loans charged off45——181578156
Less recoveries on loans(19)——(8)(1)(22)(50)
Net loan charge-offs (recoveries)26——101456—106
Balance at end of period$4,701 $235 $425 $2,673 $10,681 $255 $(41)$18,929 
Nine Months Ended September 30, 2022
(in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$2,717 $137 $588 $2,482 $10,662 $256 $61 $16,903 
Additions:
Provision for (release of ) loan losses188(66)261723(2,491)259126(1,000)
Deductions:
Loans charged off106———178262—546
Less recoveries on loans(49)——(27)(9)(63)—(148)
Net loan charge-offs (recoveries)57——(27)169199—398
Balance at end of period$2,848 $71 $849 $3,232 $8,002 $316 $187 $15,505 
Nine Months Ended September 30, 2021
(in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
Balance at beginning of period$5,121 $213 $475 $2,679 $9,354 $264 $7 $18,113 
Additions:
Provision for (release of ) loan losses(522)9(50)(167)1,368110(48)700
Deductions:
Loans charged off100——2242181345
Less recoveries on loans(202)(13)—(183)(1)(62)(461)
Net loan charge-offs (recoveries)(102)(13)—(161)41119—(116)
Balance at end of period$4,701 $235 $425 $2,673 $10,681 $255 $(41)$18,929 
Schedule of Allowance for Loan Losses and Recorded Investment by Portfolio Segment
The following table illustrates the allowance for loan losses and recorded investment by portfolio segment:
(in thousands)Commercial, Financial, and AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
September 30, 2022
Allowance for loan losses:
Individually evaluated for impairment$43 $— $11 $190 $57 $1 $— $302 
Collectively evaluated for impairment2,805718383,0427,94531518715,203
Total$2,848 $71 $849 $3,232 $8,002 $316 $187 $15,505 
Loans outstanding:
Individually evaluated for impairment$350 $— $91 $2,181 $16,308 $6 $— $18,936 
Collectively evaluated for impairment248,56325,243133,095341,480700,88423,796—1,473,061
Total$248,913 $25,243 $133,186 $343,661 $717,192 $23,802 $— $1,491,997 
December 31, 2021
Allowance for loan losses:
Individually evaluated for impairment$42 $— $13 $166 $2,815 $8 $— $3,044 
Collectively evaluated for impairment2,6751375752,3167,8472486113,859
Total$2,717 $137 $588 $2,482 $10,662 $256 $61 $16,903 
Loans outstanding:
Individually evaluated for impairment$341 $— $105 $2,391 $24,357 $60 $— $27,254 
Collectively evaluated for impairment216,87327,92091,264276,955638,89922,968—1,274,879
Total$217,214 $27,920 $91,369 $279,346 $663,256 $23,028 $— $1,302,133 
Schedule of Impaired Loans
The categories of impaired loans at September 30, 2022 and December 31, 2021 are as follows:
(in thousands)September 30, 2022December 31, 2021
Non-accrual loans$17,348 $25,459 
Performing TDRs1,5881,795
Total impaired loans$18,936 $27,254 
The following tables provide additional information about impaired loans at September 30, 2022 and December 31, 2021, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided.
(in thousands)Recorded InvestmentUnpaid Principal BalanceSpecific Reserves
September 30, 2022
With no related allowance recorded:   
Real estate mortgage − commercial$15,898 $16,949 $— 
Total$15,898 $16,949 $— 
With an allowance recorded:  
Commercial, financial and agricultural$350 $384 $43 
Real estate construction − commercial9113011
Real estate mortgage − residential2,1812,686190
Real estate mortgage − commercial41049657
Installment and other consumer661
Total$3,038 $3,702 $302 
Total impaired loans$18,936 $20,651 $302 
(in thousands)Recorded InvestmentUnpaid Principal BalanceSpecific Reserves
December 31, 2021   
With no related allowance recorded:   
Real estate mortgage − residential$1,034 $1,152 $— 
Real estate mortgage − commercial15,59316,057—
Total$16,627 $17,209 $— 
With an allowance recorded:
Commercial, financial and agricultural$341 $374 $42 
Real estate construction − commercial10513813
Real estate mortgage − residential1,3571,730166
Real estate mortgage − commercial8,7649,1422,815
Installment and other consumer60618
Total$10,627 $11,445 $3,044 
Total impaired loans$27,254 $28,654 $3,044 
The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in thousands)Average Recorded InvestmentInterest Recognized For the Period EndedAverage Recorded InvestmentInterest Recognized For the Period EndedAverage Recorded InvestmentInterest Recognized For the Period EndedAverage Recorded InvestmentInterest Recognized For the Period Ended
With no related allowance recorded:
Commercial, financial and agricultural$— $— $1,517 $18 $— $— $1,703 $31 
Real estate mortgage − residential— — 1,131 — 4 1 1,238 21 
Real estate mortgage − commercial15,937 — 9,376 — 15,752 — 9,411 — 
Total$15,937 $— $12,024 $18 $15,756 $1 $12,352 $52 
With an allowance recorded:
Commercial, financial and agricultural$322 $3 $5,295 $5 $328 $8 $5,409 $19 
Real estate construction − residential——————63—
Real estate construction − commercial9315109—9545139—
Real estate mortgage − residential2,17761,713162,297221,69126
Real estate mortgage − commercial414—16,1027422116,11121
Installment and other consumer99—55—118—633
Total$3,105 $24 $23,274 $28 $3,260 $76 $23,476 $69 
Total impaired loans$19,042 $24 $35,298 $46 $19,016 $77 $35,828 $121 
Schedule of Aging Information for the Company's Past Due and Non-Accrual Loans
The following table provides aging information for the Company’s past due and non-accrual loans at September 30, 2022 and December 31, 2021.
(in thousands)Current or Less Than 30 Days Past Due30 - 89 Days Past Due90 Days Past Due And Still AccruingNon-AccrualTotal
September 30, 2022
Commercial, Financial, and Agricultural$248,707 $33 $— $173 $248,913 
Real estate construction − residential25,243 — — — 25,243 
Real estate construction − commercial133,095 — — 91 133,186 
Real estate mortgage − residential342,357 221 — 1,083 343,661 
Real estate mortgage − commercial700,960 237 — 15,995 717,192 
Installment and Other Consumer23,720 76 — 6 23,802 
Total$1,474,082 $567 $— $17,348 $1,491,997 
December 31, 2021
Commercial, Financial, and Agricultural$217,058 $3 $— $153 $217,214 
Real estate construction − residential27,920———27,920
Real estate construction − commercial91,264——10591,369
Real estate mortgage − residential277,532671141,129279,346
Real estate mortgage − commercial638,982245—24,029663,256
Installment and Other Consumer22,848137—4323,028
Total$1,275,604 $1,056 $14 $25,459 $1,302,133 
Schedule of Risk Categories by Class
The following table presents the risk categories by class at September 30, 2022 and December 31, 2021.
(in thousands)Commercial, Financial, & AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and other ConsumerTotal
At September 30, 2022
Watch$8,035 $— $2,269 $6,447 $47,953 $— $64,704 
Substandard7,064 — 3,358 513 2,130 — 13,065 
Performing TDRs177 — — 1,098 313 — 1,588 
Non-accrual loans173 — 91 1,083 15,995 6 17,348 
Total$15,449 $— $5,718 $9,141 $66,391 $6 $96,705 
At December 31, 2021
Watch$9,219 $— $4,304 $12,185 $43,348 $— $69,056 
Substandard6,284 — 2,673 750 2,305 — 12,012 
Performing TDRs188——1,262328171,795
Non-accrual loans153—1051,12924,0294325,459
Total$15,844 $— $7,082 $15,326 $70,010 $60 $108,322