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Loans and Allowance for Loan Losses (“ALLL”) | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
Loans and Allowance for Loan Losses (“ALLL”) | Loans and Allowance for Loan Losses (“ALLL”) The composition of the loan portfolio is as follows as of the periods indicated:
| December 31, |  | December 31,
| 2022 |  | 2021
| (dollars in thousands)
Commercial and industrial loans | $ | 312,628 |  |  | $ | 419,060 |
Real estate loans: |  |  |
Construction, land, and land development | 214,055 |  |  | 183,594 |
Residential real estate | 449,157 |  |  | 204,389 |
Commercial real estate | 1,048,752 |  |  | 835,587 |
Consumer and other loans | 608,771 |  |  | 108,871 |
Gross loans receivable | 2,633,363 |  |  | 1,751,501 |
Net deferred origination fees and premiums | (6,107) |  |  | (8,766) |
Loans receivable | $ | 2,627,256 |  |  | $ | 1,742,735 |
Included in commercial and industrial loans is $146.0 million and $202.9 million in capital call lines, as of December 31, 2022 and December 31, 2021, respectively, provided to venture capital firms through one of our BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every line. Also included in commercial and industrial loans are Paycheck Protection Program (“PPP”) loans of $4.7 million and $111.8 million at December 31, 2022 and December 31, 2021, respectively. PPP loans are 100% guaranteed by the SBA. Consumer and other loans includes overdrafts of $2.7 million and $1.3 million at December 31, 2022 and December 31, 2021, respectively. Community bank overdrafts were $94,000 and $13,000 at December 31, 2022 and December 31, 2021, respectively and CCBX overdrafts were $2.6 million and $1.3 million at December 31, 2022 and December 31, 2021, respectively. The Company has pledged loans totaling $220.1 million and $183.5 million at December 31, 2022 and December 31, 2021, respectively, for borrowing lines at the FHLB and FRB. The balance of SBA and USDA loans and participations serviced for others totaled $14.3 million and $19.3 million at December 31, 2022 and December 31, 2021, respectively. The balance of Main Street Lending Program (“MSLP”) loans participated and serviced for others totaled $58.0 million and $56.3 million at December 31, 2022 and December 31, 2021, respectively, with $3.1 million and $4.8 million outstanding and included in commercial and industrial loans as of December 31, 2022 and December 31, 2021, respectively. The Company, at times, purchases individual loans through the community bank at fair value as of the acquisition date. The Company held purchased loans with remaining balances totaled $9.6 million and $12.8 million as of December 31, 2022 and December 31, 2021, respectively. Unamortized premiums totaled $167,000 and $223,000 as of December 31, 2022 and December 31, 2021, respectively, and are amortized into interest income over the life of the loans. These loans are included in the applicable loan category depending upon the collateral and purpose of the individual loan. The Company has purchased participation loans with remaining balances totaling $63.9 million and $27.9 million as of December 31, 2022 and December 31, 2021, respectively. These loans are included in the applicable loan category depending upon the collateral and purpose of the individual loan. The Company purchased loans from CCBX partners, at par, through agreements with those CCBX partners, and those loans had a remaining balance of $157.4 million as of December 31, 2022 and $59.7 million as of December 31, 2021. As of December 31, 2022, $146.1 million is included in consumer and other loans and $11.3 million is included in commercial and industrial loans, compared to $59.4 million in consumer and other loans and $281,000 in commercial and industrial loans as of December 31, 2021. The following is a summary of the Company’s loan portfolio segments: Commercial and industrial loans - Commercial and industrial loans are secured by business assets including inventory, receivables and machinery and equipment of businesses located generally in the Company’s primary market area and capital calls on venture and investment funds. Also included in commercial and industrial loans are $14.9 million in unsecured loans originated through CCBX partners as of December 31, 2022, compared to zero as of December 31, 2021. Loan types include PPP loans, revolving lines of credit, term loans, and loans secured by liquid collateral such as cash deposits or marketable securities. Also included in commercial and industrial loans are loans to other financial institutions. Additionally, the Company issues letters of credit on behalf of its customers. Risk arises primarily due to the difference between expected and actual cash flows of the borrowers. In addition, the recoverability of the Company’s investment in these loans is also dependent on other factors primarily dictated by the type of collateral securing these loans. The fair value of the collateral securing these loans may fluctuate as market conditions change. In the case of loans secured by accounts receivable, the recovery of the Company’s investment is dependent upon the borrower’s ability to collect amounts due from its customers. For the year ended December 31, 2022, $146.0 million in CCBX capital call lines are included in commercial and industrial loans compared to $202.9 million at December 31, 2021. Capital call lines are provided to venture capital firms. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every line/loan. Construction, land and land development loans – The Company originates loans for the construction of 1-4 family, multifamily, and CRE properties in the Company’s market area. Construction loans are considered to have higher risks due to construction completion and timing risk, the ultimate repayment being sensitive to interest rate changes, government regulation of real property and the availability of long-term financing. Additionally, economic conditions may impact the Company’s ability to recover its investment in construction loans, as adverse economic conditions may negatively impact the real estate market, which could affect the borrower’s ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. The Company occasionally originates land loans for the purpose of facilitating the ultimate construction of a home or commercial building. The primary risks include the borrower’s ability to pay and the inability of the Company to recover its investment due to a material decline in the fair value of the underlying collateral. Residential real estate - Residential real estate includes various types of loans for which the Company holds real property as collateral. Included in this segment are multi-family loans, first lien single family loans, which the Company occasionally purchases to diversify its loan portfolio, home equity lines of credit and rental portfolios secured by one-to-four family homes. The primary risks of residential real estate loans include the borrower’s inability to pay, material decreases in the value of the collateral, and significant increases in interest rates which may make the loan unprofitable. As of December 31, 2022, $244.6 million in loans originated through CCBX partners are included in residential real estate loans, compared to $36.9 million at December 31, 2021. These home equity lines of credit are secured by residential real estate and are accessed by using a credit card. Home equity lines of credit are classified as residential real estate per regulatory guidelines. Commercial real estate (includes owner occupied and nonowner occupied) - Commercial real estate loans include various types of loans for which the Company holds real property as collateral. We make commercial mortgage loans collateralized by owner-occupied and non-owner-occupied real estate, as well as multi-family residential loans. The primary risks of commercial real estate loans include the borrower’s inability to pay, material decreases in the value of the collateralized real estate and significant increases in interest rates, which may make the real estate loan unprofitable. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Consumer and other loans – The community bank originates a limited number of consumer loans, generally for banking customers only, which consist primarily of lines of credit, saving account secured loans, and auto loans. CCBX originates consumer loans including credit cards, consumer term loans and secured and unsecured lines of credit. This loan category also includes overdrafts. Repayment of these loans is dependent on the borrower’s ability to pay and the fair value of the underlying collateral. As of December 31, 2022 $607.0 million in CCBX loans are included in consumer and other loans, compared to $106.8 million at December 31, 2021. The following table illustrates an age analysis of past due loans as of the dates indicated:
| 30-89 Days Past Due |  | 90 Days or More Past Due |  | Total Past Due |  | Current |  | Total Loans |  | Recorded Investment 90 Days or More Past Due and Still Accruing
| (dollars in thousands)
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial loans | $ | 393 |  |  | $ | 486 |  |  | $ | 879 |  |  | $ | 311,749 |  |  | $ | 312,628 |  |  | $ | 404 |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |
Construction, land and land development | — |  |  | 66 |  |  | 66 |  |  | 213,989 |  |  | 214,055 |  |  | — |
Residential real estate | 1,016 |  |  | 876 |  |  | 1,892 |  |  | 447,265 |  |  | 449,157 |  |  | 876 |
Commercial real estate | 95 |  |  | 6,901 |  |  | 6,996 |  |  | 1,041,756 |  |  | 1,048,752 |  |  | — |
Consumer and other loans | 37,932 |  |  | 24,815 |  |  | 62,747 |  |  | 546,024 |  |  | 608,771 |  |  | 24,815 |
| $ | 39,436 |  |  | $ | 33,144 |  |  | $ | 72,580 |  |  | $ | 2,560,783 |  |  | $ | 2,633,363 |  |  | $ | 26,095 |
Less net deferred origination fees and premiums |  |  |  |  |  |  |  |  | (6,107) |  |  |
Loans receivable |  |  |  |  |  |  |  |  | $ | 2,627,256 |  |  |
| 30-89 Days Past Due |  | 90 Days or More Past Due |  | Total Past Due |  | Current |  | Total Loans |  | Recorded Investment 90 Days or More Past Due and Still Accruing
| (dollars in thousands)
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial loans | $ | 259 |  |  | $ | 38 |  |  | $ | 297 |  |  | $ | 418,763 |  |  | $ | 419,060 |  |  | $ | — |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |
Construction, land and land development | — |  |  | — |  |  | — |  |  | 183,594 |  |  | 183,594 |  |  | — |
Residential real estate | 809 |  |  | 94 |  |  | 903 |  |  | 203,486 |  |  | 204,389 |  |  | 39 |
Commercial real estate | — |  |  | — |  |  | — |  |  | 835,587 |  |  | 835,587 |  |  | — |
Consumer and other loans | 3,901 |  |  | 1,467 |  |  | 5,368 |  |  | 103,503 |  |  | 108,871 |  |  | 1,467 |
| $ | 4,969 |  |  | $ | 1,599 |  |  | $ | 6,568 |  |  | $ | 1,744,933 |  |  | $ | 1,751,501 |  |  | $ | 1,506 |
Less net deferred origination fees and premiums |  |  |  |  |  |  |  |  | (8,766) |  |  |
Loans receivable |  |  |  |  |  |  |  |  | $ | 1,742,735 |  |  |
There were $26.1 million in loans past due 90 days or more and still accruing interest as of December 31, 2022, and $1.5 million as of December 31, 2021. The increase is attributed to loans originated through CCBX lending partners which continue to accrue interest up to 180 days past due. The following table is a summary of information pertaining to impaired loans as of the period indicated. Loans originated through CCBX partners are reported using pool accounting and are not subject to individual impairment analysis, therefore CCBX loans are not included in this table.
| Unpaid Contractual Principal Balance |  | Recorded Investment With No Allowance |  | Recorded Investment With Allowance |  | Total Recorded Investment |  | Related Allowance
| (dollars in thousands)
December 31, 2022 |  |  |  |  |  |  |  |  |
Commercial and industrial loans | $ | 124 |  |  | $ | — |  |  | $ | 113 |  |  | $ | 113 |  |  | $ | 95 |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction, land and land development | 67 |  |  | 66 |  |  | — |  |  | 66 |  |  | — |
Residential real estate | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate | 6,901 |  |  | 6,901 |  |  | — |  |  | 6,901 |  |  | — |
Total | $ | 7,092 |  |  | $ | 6,967 |  |  | $ | 113 |  |  | $ | 7,080 |  |  | $ | 95 |
December 31, 2021 |  |  |  |  |  |  |  |  |
Commercial and industrial loans | $ | 173 |  |  | $ | — |  |  | $ | 166 |  |  | $ | 166 |  |  | $ | 132 |
Real estate loans: |  |  |  |  |  |  |  |  |
Residential real estate | 69 |  |  | 55 |  |  | — |  |  | 55 |  |  | — |
Total | $ | 242 |  |  | $ | 55 |  |  | $ | 166 |  |  | $ | 221 |  |  | $ | 132 |
The following tables summarize the average recorded investment and interest income recognized on impaired loans by loan class for the year ended December 31, 2022 and 2021:
| December 31, 2022 |  | December 31, 2021
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
| (dollars in thousands)
Commercial and industrial loans | $ | 121 |  |  | $ | — |  |  | $ | 498 |  |  | $ | — |
Real estate loans: |  |  |  |  |  |  |
Construction, land and land development | 40 |  |  | — |  |  | — |  |  | — |
Residential real estate | 32 |  |  | — |  |  | 143 |  |  | — |
Commercial real estate | 1,395 |  |  | — |  |  | — |  |  | — |
Total | $ | 1,588 |  |  | $ | — |  |  | $ | 641 |  |  | $ | — |
In some circumstances, the Company grants restructurings in response to borrower financial difficulty, and generally provides for a temporary modification of loan repayment terms. The restructured loans on accrual status represent the only impaired loans accruing interest. In order for a restructured loan to be considered for accrual status, the loan’s collateral coverage generally will be greater than or equal to 100% of the loan balance, the loan is current on payments, and the borrower must either prefund an interest reserve or demonstrate the ability to make payments from a verified source of cash flow for an extended period of time, usually at least six months in duration. No loans were restructured in the year ended December 31, 2022 and December 31, 2021 that qualified as troubled debt restructurings. The Company has no commitments to loan additional funds to borrowers whose loans were classified as troubled debt restructurings at December 31, 2022, as there were no outstanding troubled debt restructurings at December 31, 2022 and December 31, 2021. Pursuant to guidance from the federal bank regulatory agencies, the Company deferred or modified payments on existing loans to assist customers financially during the COVID-19 pandemic and economic shutdown. As of December 31, 2022 all deferred and modified loans during the COVID-19 pandemic have either returned to active status or paid off. In accordance with GAAP, the CARES Act, as amended by the Consolidated Appropriations Act, 2021, and interagency guidance issued on March 22, 2020 and April 7, 2020, these short-term modifications, made on a good faith basis in response to the COVID-19 pandemic to borrowers that were current prior to any relief, were not considered TDRs. The accrual of interest on community bank loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due or when they are 90 days past due as to either principal or interest, unless they are well secured and in the process of collection. Installment/closed-end, and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and an allowance is recorded through provision expense for these probable incurred losses. For installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners with balances outstanding beyond 120 days and 180 days past due, respectively, principal and capitalized interest outstanding is charged off against the allowance and accrued interest outstanding is reversed against interest income. These consumer loans are reported as substandard, 90 days or more days past due and still accruing. When loans are placed on nonaccrual status, all accrued interest is reversed from current period earnings. Payments received on nonaccrual loans are generally applied as a reduction to the loan principal balance. If the likelihood of further loss is removed, the Company will recognize interest on a cash basis only. Loans may be returned to accruing status if the Company believes that all remaining principal and interest is fully collectible and there has been at least six months of sustained repayment performance since the loan was placed on nonaccrual. An analysis of nonaccrual loans by category consisted of the following at the periods indicated:
| December 31, |  | December 31,
| 2022 |  | 2021
| (dollars in thousands)
Commercial and industrial loans | $ | 113 |  |  | $ | 166 |
Real estate loans: |  |  |
Construction, land and land development | 66 |  |  | — |
Residential real estate | — |  |  | 55 |
Commercial real estate | 6,901 |  |  | — |
Total nonaccrual loans | $ | 7,080 |  |  | $ | 221 |
Credit Quality and Credit Risk Federal regulations require that the Company periodically evaluate the risks inherent in its loan portfolio. In addition, the Company’s regulatory agencies have authority to identify problem loans and, if appropriate, require them to be reclassified. The Company classifies some loans as Watch or Other Loans Especially Mentioned (“OLEM”). Loans classified as Watch are performing assets but have elements of risk that require more monitoring than other performing loans and are reported in the OLEM column in the following table. Loans classified as OLEM are assets that continue to perform but have shown deterioration in credit quality and require close monitoring. There are three classifications for problem loans: Substandard, Doubtful, and Loss. Substandard loans have one or more defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Revolving (open-ended loans, such as credit cards) and installment (closed end) consumer loans originated through CCBX partners continue to accrue interest until they are charged-off at 120 days past due for installment loans (primarily unsecured loans to consumers) and 180 days past due for revolving loans (primarily credit cards) and are classified as substandard. Doubtful loans have the weaknesses of loans classified as Substandard, with additional characteristics that suggest the weaknesses make collection or recovery in full after liquidation of collateral questionable on the basis of currently existing facts, conditions, and values. There is a high possibility of loss in loans classified as Doubtful. A loan classified as Loss is considered uncollectible and of such little value that continued classification of the credit as a loan is not warranted. If a loan or a portion thereof is classified as Loss, it must be charged-off, meaning the amount of the loss is charged against the allowance for loan losses, thereby reducing that reserve. Loans by credit quality risk rating are as follows as of the periods indicated:
| Pass |  | Other Loans Especially Mentioned |  | Sub- Standard |  | Doubtful |  | Total
| (dollars in thousands)
December 31, 2022 |  |  |  |  |  |  |  |  |
Commercial and industrial loans | $ | 304,840 |  |  | $ | 7,219 |  |  | $ | 569 |  |  | $ | — |  |  | $ | 312,628 |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction, land, and land development | 206,304 |  |  | 7,685 |  |  | 66 |  |  | — |  |  | 214,055 |
Residential real estate | 448,185 |  |  | 96 |  |  | 876 |  |  | — |  |  | 449,157 |
Commercial real estate | 1,030,650 |  |  | 11,201 |  |  | 6,901 |  |  | — |  |  | 1,048,752 |
Consumer and other loans | 583,956 |  |  | — |  |  | 24,815 |  |  | — |  |  | 608,771 |
| $ | 2,573,935 |  |  | $ | 26,201 |  |  | $ | 33,227 |  |  | $ | — |  |  | 2,633,363 |
Less net deferred origination fees |  |  |  |  |  |  |  |  | (6,107) |
Loans receivable |  |  |  |  |  |  |  |  | $ | 2,627,256 |
December 31, 2021 |  |  |  |  |  |  |  |  |
Commercial and industrial loans | $ | 416,642 |  |  | $ | 2,180 |  |  | $ | 238 |  |  | $ | — |  |  | $ | 419,060 |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction, land, and land development | 183,594 |  |  | — |  |  | — |  |  | — |  |  | 183,594 |
Residential real estate | 204,173 |  |  | 122 |  |  | 94 |  |  | — |  |  | 204,389 |
Commercial real estate | 824,676 |  |  | 10,911 |  |  | — |  |  | — |  |  | 835,587 |
Consumer and other loans | 107,404 |  |  | — |  |  | 1,467 |  |  | — |  |  | 108,871 |
| $ | 1,736,489 |  |  | $ | 13,213 |  |  | $ | 1,799 |  |  | $ | — |  |  | 1,751,501 |
Less net deferred origination fees |  |  |  |  |  |  |  |  | (8,766) |
Loans receivable |  |  |  |  |  |  |  |  | $ | 1,742,735 |
Allowance for Loan Losses The Company’s ALLL covers estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated probable losses inherent in the remainder of the loan portfolio. The ALLL for the community bank is prepared using the information provided by the Company’s credit review process and our historical loss data, together with data from peer institutions and economic information gathered from published sources. The loan portfolio is segmented into groups of loans with similar risk profiles. Each segment possesses varying degrees of risk based on the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external factors such as economic conditions. An estimated loss rate calculated from the community bank’s actual historical loss rates adjusted for current portfolio trends, economic conditions, and other relevant internal and external factors, is applied to each group’s aggregate loan balances. CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for loan losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by absorbing incurred losses. In accordance with accounting guidance, we estimate and record a provision for probable losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX loan losses and provision for unfunded commitments are recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Incurred losses are recorded in the allowance for loan losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. Although agreements with our CCBX partners include credit enhancements that provide protection to the Bank from credit and fraud losses, the Bank would be exposed to additional loan losses if our partner is unable to fulfill its contracted obligations. In accordance with the program agreement for one CCBX partner, the Company is responsible for credit losses on approximately 10% of a $114.5 million loan portfolio. At December 31, 2022, 10% of this portfolio represented $11.5 million in loans. The partner is responsible for credit losses on approximately 90% of this portfolio and for fraud losses on 100% of this portfolio. The Company earns 100% of the revenue on the aforementioned $11.5 million of loans. For the year ended December 31, 2022, there were $216,000 in net charge-offs on the portion of loans for which the Company is responsible for credit losses. The following tables summarize the allocation of the allowance for loan loss, as well as the activity in the allowance for loan loss attributed to various segments in the loan portfolio, as of and for the year ended December 31, 2022.
| Commercial and Industrial |  | Construction, Land, and Land Development |  | Residential Real Estate |  | Commercial Real Estate |  | Consumer and Other |  | Unallocated |  | Total
| (dollars in thousands)
Twelve Months Ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
ALLL balance, December 31, 2021 | $ | 3,221 |  |  | $ | 6,984 |  |  | $ | 4,598 |  |  | $ | 6,590 |  |  | $ | 7,092 |  |  | $ | 147 |  |  | $ | 28,632 |
Provision for loan losses or (recapture) | 2,125 |  |  | 441 |  |  | (4) |  |  | (1,120) |  |  | 76,604 |  |  | 1,018 |  |  | 79,064 |
| 5,346 |  |  | 7,425 |  |  | 4,594 |  |  | 5,470 |  |  | 83,696 |  |  | 1,165 |  |  | 107,696 |
Loans charged-off | (555) |  |  | — |  |  | (452) |  |  | — |  |  | (32,742) |  |  | — |  |  | (33,749) |
Recoveries of loans previously charged-off | 40 |  |  | — |  |  | — |  |  | — |  |  | 42 |  |  | — |  |  | 82 |
Net (charge-offs) recoveries | (515) |  |  | — |  |  | (452) |  |  | — |  |  | (32,700) |  |  | — |  |  | (33,667) |
ALLL balance, December 31, 2022 | $ | 4,831 |  |  | $ | 7,425 |  |  | $ | 4,142 |  |  | $ | 5,470 |  |  | $ | 50,996 |  |  | $ | 1,165 |  |  | $ | 74,029 |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
ALLL amounts allocated to |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 95 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 95 |
Collectively evaluated for impairment | 4,736 |  |  | 7,425 |  |  | 4,142 |  |  | 5,470 |  |  | 50,996 |  |  | 1,165 |  |  | 73,934 |
ALLL balance, December 31, 2022 | $ | 4,831 |  |  | $ | 7,425 |  |  | $ | 4,142 |  |  | $ | 5,470 |  |  | $ | 50,996 |  |  | $ | 1,165 |  |  | $ | 74,029 |
Loans individually evaluated for impairment | $ | 113 |  |  | $ | 66 |  |  | $ | — |  |  | $ | 6,901 |  |  | $ | — |  |  |  |  | $ | 7,080 |
Loans collectively evaluated for impairment | 312,515 |  |  | 213,989 |  |  | 449,157 |  |  | 1,041,851 |  |  | 608,771 |  |  |  |  | 2,626,283 |
Loan balance, December 31, 2022 | $ | 312,628 |  |  | $ | 214,055 |  |  | $ | 449,157 |  |  | $ | 1,048,752 |  |  | $ | 608,771 |  |  |  |  | $ | 2,633,363 |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Loan balance, December 31, 2021 | $ | 419,060 |  |  | $ | 183,594 |  |  | $ | 204,389 |  |  | $ | 835,587 |  |  | $ | 108,871 |  |  |  |  | $ | 1,751,501 |
The following tables summarize the allocation of the allowance for loan loss, as well as the activity in the allowance for loan loss attributed to various segments in the loan portfolio, as of and for the year ended December 31, 2021:
| Commercial and Industrial |  | Construction, Land, and Land Development |  | Residential Real Estate |  | Commercial Real Estate |  | Consumer and Other |  | Unallocated |  | Total
| (dollars in thousands)
Twelve Months Ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, December 31, 2020 | $ | 3,353 |  |  | $ | 3,545 |  |  | $ | 3,410 |  |  | $ | 7,810 |  |  | $ | 127 |  |  | $ | 1,017 |  |  | $ | 19,262 |
Provision for loan losses or (recapture) | 23 |  |  | 3,439 |  |  | 1,267 |  |  | (1,220) |  |  | 7,276 |  |  | (870) |  |  | 9,915 |
| 3,376 |  |  | 6,984 |  |  | 4,677 |  |  | 6,590 |  |  | 7,403 |  |  | 147 |  |  | 29,177 |
Loans charged-off | (222) |  |  | — |  |  | (79) |  |  | — |  |  | (339) |  |  | — |  |  | (640) |
Recoveries of loans previously charged-off | 67 |  |  | — |  |  | — |  |  | — |  |  | 28 |  |  | — |  |  | 95 |
Net (charge-offs) recoveries | (155) |  |  | — |  |  | (79) |  |  | — |  |  | (311) |  |  | — |  |  | (545) |
Balance, December 31, 2021 | $ | 3,221 |  |  | $ | 6,984 |  |  | $ | 4,598 |  |  | $ | 6,590 |  |  | $ | 7,092 |  |  | $ | 147 |  |  | $ | 28,632 |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
ALLL amounts allocated to |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 132 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 132 |
Collectively evaluated for impairment | 3,089 |  |  | 6,984 |  |  | 4,598 |  |  | 6,590 |  |  | 7,092 |  |  | 147 |  |  | 28,500 |
ALLL balance, December 31, 2021 | $ | 3,221 |  |  | $ | 6,984 |  |  | $ | 4,598 |  |  | $ | 6,590 |  |  | $ | 7,092 |  |  | $ | 147 |  |  | $ | 28,632 |
Loans individually evaluated for impairment | $ | 166 |  |  | $ | — |  |  | $ | 55 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 221 |
Loans collectively evaluated for impairment | 418,894 |  |  | 183,594 |  |  | 204,334 |  |  | 835,587 |  |  | 108,871 |  |  |  |  | 1,751,280 |
Loan balance, December 31, 2021 | $ | 419,060 |  |  | $ | 183,594 |  |  | $ | 204,389 |  |  | $ | 835,587 |  |  | $ | 108,871 |  |  |  |  | $ | 1,751,501 |
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Loan balance, December 31, 2020 | $ | 539,200 |  |  | $ | 94,423 |  |  | $ | 143,869 |  |  | $ | 774,925 |  |  | $ | 3,916 |  |  |  |  | $ | 1,556,333 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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- References No definition available. + Details
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