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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Schedule of Loans, by Major Class Within the Company's Loan Portfolio
Major classifications within the Company’s held for investment loan portfolio at March 31, 2023 and December 31, 2022 were as follows:
(in thousands)March 31, 2023December 31, 2022
Commercial, financial, and agricultural$227,992 $244,549 
Real estate construction − residential44,46732,095
Real estate construction − commercial157,860137,235
Real estate mortgage − residential363,634361,025
Real estate mortgage − commercial725,573722,729
Installment and other consumer22,54823,619
Total loans held for investment$1,542,074 $1,521,252 
Schedule of the Allowance for Loan Losses
The following table illustrates the changes in the allowance for credit losses by portfolio segment:
Three Months Ended March 31, 2023
(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$2,735 $157 $875 $3,329 $8,000 $326 $166 $15,588 
Adoption of ASU 2016-13(649)291 2,894 1,890 1,613 (80)(166)5,793 
Balance at January 1, 20232,086 448 3,769 5,219 9,613 246 — 21,381 
Provision for (release of ) credit losses (1)(144)18369541(123)6(8)650
Loans charged off30———558—93
Less recoveries on loans(9)——(2)(2)(28)—(41)
Net loan charge-offs (recoveries)21——(2)330—52
Balance at end of period$1,921 $631 $4,464 $5,262 $9,487 $222 $(8)$21,979 
Liability for Unfunded Commitments
Balance at beginning of period$— $— $— $— $— $— $— $— 
Adoption of ASU 2016-13104 341 569 107 150 1 — 1,272 
Balance at January 1, 2023104 341 569 107 150 1 — 1,272 
Provision for credit losses on unfunded commitments2048(7)3(8)—(26)30
Balance at end of period$124 $389 $562 $110 $142 $1 $(26)$1,302 
Allowance for credit losses on loans and liability for unfunded commitments$2,045 $1,020 $5,026 $5,372 $9,629 $223 $(34)$23,281 
Three Months Ended March 31, 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 
Provision for (release of ) loan losses (1)128(77)7693(2,897)56121(2,500)
Loans charged off35———7556—166
Less recoveries on loans(20)——(3)(2)(17)—(42)
Net loan charge-offs (recoveries)15——(3)7339—124
Balance at end of period$2,830 $60 $664 $2,578 $7,692 $273 $182 $14,279 
(1) Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.
Schedule of Risk Categories by Class
The amortized cost of collateral-dependent loans by class as of March 31, 2023 was as follows:
Collateral Type
(in thousands)Real EstateOtherAllowance Allocated
March 31, 2023
Commercial, financial, and agricultural$— $50 $— 
Real estate mortgage − residential149 — 63 
Real estate mortgage − commercial18,228 — — 
Total$18,377 $50 $63 
The following table presents the recorded investment by risk categories at March 31, 2023:
Term Loans
Amortized Cost Basis by Origination Year and Risk Grades
(in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
March 31, 2023
Commercial, Financial, & Agricultural
Pass$19,920 $58,909 $38,221 $34,975 $5,761 $6,911 $49,034 $220 $213,951 
Watch— 2,744 82 724 123 348 3,567 — 7,588 
Substandard386 3,957 58 22 — — 1,864 — 6,287 
Non-accrual (1)— 50 — — 21 95 — — 166 
Total$20,306 $65,660 $38,361 $35,721 $5,905 $7,354 $54,465 $220 $227,992 
Real Estate Construction - Residential
Pass$12,681 $28,902 $965 $760 $444 $— $340 $— $44,092 
Watch375 — — — — — — — 375 
Substandard— — — — — — — — — 
Non-accrual (1)— — — — — — — — — 
Total$13,056 $28,902 $965 $760 $444 $— $340 $— $44,467 
Real Estate Construction - Commercial
Pass$12,835 $64,556 $72,260 $1,922 $73 $1,185 $1,498 $— $154,329 
Watch744 1,660 241 — — 14 103 — 2,762 
Substandard686 — — — — — — — 686 
Non-accrual (1)— — — — — 83 — — 83 
Total$14,265 $66,216 $72,501 $1,922 $73 $1,282 $1,601 $— $157,860 
Real Estate Mortgage - Residential
Pass$15,427 $141,707 $66,939 $52,760 $7,517 $30,034 $43,232 $— $357,616 
Watch— 212 425 1,294 137 2,292 224 — 4,584 
Substandard— — — — — 520 — — 520 
Non-accrual (1)— 56 — 241 — 357 260 — 914 
Total$15,427 $141,975 $67,364 $54,295 $7,654 $33,203 $43,716 $— $363,634 
Real Estate Mortgage - Commercial
Pass$36,871 $234,139 $194,254 $96,532 $29,834 $53,122 $12,725 $501 $657,978 
Watch85 13,298 12,854 16,706 1,113 1,650 287 — 45,993 
Substandard— 225 2,674 — 46 302 — — 3,247 
Non-accrual (1)1,789 2,775 13,522 233 — 36 — — 18,355 
Total$38,745 $250,437 $223,304 $113,471 $30,993 $55,110 $13,012 $501 $725,573 
Installment and other Consumer
Pass$2,116 $9,284 $4,512 $2,439 $1,709 $592 $1,816 $— $22,468 
Watch— — — — — — — — — 
Substandard— — — — — — — — — 
Non-accrual (1)— 76 4 — — — — — 80 
Total$2,116 $9,360 $4,516 $2,439 $1,709 $592 $1,816 $— $22,548 
Total Portfolio
Pass$99,850 $537,497 $377,151 $189,388 $45,338 $91,844 $108,645 $721 $1,450,434 
Watch1,204 17,914 13,602 18,724 1,373 4,304 4,181 — 61,302 
Substandard1,072 4,182 2,732 22 46 822 1,864 — 10,740 
Non-accrual (1)1,789 2,957 13,526 474 21 571 260 — 19,598 
Total$103,915 $562,550 $407,011 $208,608 $46,778 $97,541 $114,950 $721 $1,542,074 
(1) The majority of non-accrual loans have a substandard risk grade
The following table presents the risk categories by class at December 31, 2022 (superseded by ASU 2016-13)
(in thousands)Commercial,
Financial, &
Agricultural		Real Estate
Construction -
Residential		Real Estate
Construction -
Commercial		Real Estate
Mortgage -
Residential		Real Estate
Mortgage -
Commercial		Installment
and other
Consumer		Total
At December 31, 2022
Pass$229,949 $32,095 $133,785 $353,121 $653,552 $23,613 $1,426,115 
Watch7,411 — 2,677 5,541 48,041 — 63,670 
Substandard6,894 — 686 500 3,026 — 11,106 
Performing TDRs (1)174 — — 1,178 309 — 1,661 
Non-accrual loans (1)121 — 87 685 17,801 6 18,700 
Total$244,549 $32,095 $137,235 $361,025 $722,729 $23,619 $1,521,252 
(1) The majority of non-accrual and performing TDRs loans have a substandard risk grade
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 based on the impairment method:
(in thousands)Commercial, Financial, and AgriculturalReal Estate Construction - ResidentialReal Estate Construction - CommercialReal Estate Mortgage - ResidentialReal Estate Mortgage - CommercialInstallment and Other ConsumerUn- allocatedTotal
December 31, 2022
Allowance for loan losses:
Individually evaluated for impairment$36 $— $11 $148 $62 $1 $— $258 
Collectively evaluated for impairment2,699 157 864 3,181 7,938 325 166 15,330 
Total$2,735 $157 $875 $3,329 $8,000 $326 $166 $15,588 
Loans outstanding:
Individually evaluated for impairment$295 $— $87 $1,863 $18,110 $6 $— $20,361 
Collectively evaluated for impairment244,254 32,095 137,148 359,162 704,619 23,613 — 1,500,891 
Total$244,549 $32,095 $137,235 $361,025 $722,729 $23,619 $— $1,521,252 
Schedule of Impaired Loans
The categories of impaired loans at December 31, 2022 were as follows:
(in thousands)December 31, 2022
Non-accrual loans$18,700 
Performing TDRs1,661
Total impaired loans$20,361 
The following tables presents loans individually evaluated for impairment at December 31, 2022, segregated between loans for which an allowance was provided and loans for which no allowance was provided.
(in thousands)Recorded InvestmentUnpaid Principal BalanceSpecific ReservesAverage Recorded Investment
December 31, 2022   
With no related allowance recorded:   
Real estate mortgage − residential$— $— $— $1 
Real estate mortgage − commercial17,664 18,975 — 16,230 
Total$17,664 $18,975 $— $16,231 
With an allowance recorded:
Commercial, financial and agricultural$295 $330 $36 $319 
Real estate construction − commercial87 127 11 93 
Real estate mortgage − residential1,863 2,080 148 2,189 
Real estate mortgage − commercial446 535 62 428 
Installment and other consumer6 6 1 90 
Total$2,697 $3,078 $258 $3,119 
Total impaired loans$20,361 $22,053 $258 $19,350 
Schedule of Financing Receivable, Nonaccrual
The following tables present the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of March 31, 2023 and December 31, 2022:
(in thousands)Non-accrual with no AllowanceNon-accrual with AllowanceTotal Non-accrual (1)90 Days Past Due And Still AccruingTotal Non-performing Loans
March 31, 2023
Commercial, Financial, and Agricultural$50 $116 $166 $— $166 
Real estate construction − commercial— 83 83 — 83 
Real estate mortgage − residential— 914 914 — 914 
Real estate mortgage − commercial18,226 129 18,355 — 18,355 
Installment and Other Consumer— 80 80 1 81 
Total$18,276 $1,322 $19,598 $1 $19,599 
December 31, 2022
Commercial, Financial, and Agricultural$— $121 $121 $— $121 
Real estate construction − commercial— 87 87 —87 
Real estate mortgage − residential— 685 685 —685 
Real estate mortgage − commercial17,664 137 17,801 —17,801 
Installment and Other Consumer— 6 6 1 7 
Total$17,664 $1,036 $18,700 $1 $18,701 
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 March 31, 2023 and December 31, 2022:
(in thousands)Current or Less Than 30 Days Past Due30 - 89 Days Past Due90 Days Past Due And Still AccruingNon-AccrualTotal
March 31, 2023
Commercial, Financial, and Agricultural$227,824 $2 $— $166 $227,992 
Real estate construction − residential44,467 — — — 44,467 
Real estate construction − commercial157,777 — — 83 157,860 
Real estate mortgage − residential361,087 1,633 — 914 363,634 
Real estate mortgage − commercial707,032 186 — 18,355 725,573 
Installment and Other Consumer22,375 92 1 80 22,548 
Total$1,520,562 $1,913 $1 $19,598 $1,542,074 
December 31, 2022
Commercial, Financial, and Agricultural$244,392 $36 $— $121 $244,549 
Real estate construction − residential32,095 — — — 32,095 
Real estate construction − commercial137,148 — — 87 137,235 
Real estate mortgage − residential359,672 668 — 685 361,025 
Real estate mortgage − commercial704,925 3 — 17,801 722,729 
Installment and Other Consumer23,506 106 1 6 23,619 
Total$1,501,738 $813 $1 $18,700 $1,521,252 
Schedule of Summary of Loans that were Modified as TDRs The following table presents information regarding modifications to borrowers experiencing financial difficulty as of March 31, 2023:
March 31, 2023
(Dollars in thousands)Number of contractsRecorded Investment% to Total Loans
Commercial, financial and agricultural2$1710.01%
Real estate mortgage − residential
91,3360.09%
Real estate mortgage − commercial
33270.02%
Total14$1,8340.12%