LOANS, ALLOWANCE FOR CREDIT LOSSES, AND CREDIT QUALITY

Summary of the activity in the ACL by loan type

A summary of the activity in the ACL - Loans by loan type for the nine-months ended September 30, 2023 is summarized as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -		Construction
	Commercial /		Owner		Non - Owner		and		Residential
	Industrial		Occupied		Occupied		Development		1-4 Family		Consumer		Other		Total
ACL - Loans - January 1, 2023	$	4,071	$	5,204	$	5,405	$	1,592	$	5,944	$	314	$	150	$	22,680
Adoption of CECL		1,859		1,982		1,914		2,063		2,567		620		(33)		10,972
ACL - Loans on PCD loans acquired		1,082		4,424		—		—		28		—		—		5,534
Charge-offs		—		—		—		—		—		(1)		(69)		(70)
Recoveries		5		70		—		—		104		4		13		196
Provision		538		(220)		1,245		(87)		2,509		70		37		4,092
ACL - Loans - September 30, 2023	$	7,555	$	11,460	$	8,564	$	3,568	$	11,152	$	1,007	$	98	$	43,404

A summary of the activity in the allowance for loan losses (“ALL”) by loan type for the nine-months ended September 30, 2022 is as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -		Construction
	Commercial /		Owner		Non - Owner		and		Residential
	Industrial		Occupied		Occupied		Development		1-4 Family		Consumer		Other		Total
ALL - January 1, 2022	$	3,699	$	5,633	$	5,151	$	984	$	4,445	$	224	$	179	$	20,315
Charge-offs		—		—		—		—		(39)		(17)		(27)		(83)
Recoveries		455		74		360		152		6		2		64		1,113
Provision		134		(643)		365		507		1,312		90		(65)		1,700
ALL September 30, 2022		4,288		5,064		5,876		1,643		5,724		299		151		23,045
ALL ending balance individually evaluated for impairment		150		—		775		—		—		—		—		925
ALL ending balance collectively evaluated for impairment	$	4,138	$	5,064	$	5,101	$	1,643	$	5,724	$	299	$	151	$	22,120
Loans outstanding - September 30, 2022	$	486,839	$	723,964	$	668,505	$	209,619	$	706,794	$	43,953	$	19,178	$	2,858,852
Loans ending balance individually evaluated for impairment		487		2,541		1,396		—		211		—		—		4,635
Loans ending balance collectively evaluated for impairment	$	486,352	$	721,423	$	667,109	$	209,619	$	706,583	$	43,953	$	19,178	$	2,854,217

Summary of past due loans

The Company’s past due and non-accrual loans as of September 30, 2023 is summarized as follows:


			90 Days						Non-Accrual
	30-89 Days		or more						with no
	Past Due		Past Due		Non-				specifically
	Accruing		and Accruing		Accrual		Total		allocated ACL
Commercial/industrial	$	78	$	18	$	531	$	627	$	47
Commercial real estate - owner occupied		180		250		1,958		2,388		1,958
Commercial real estate - non-owner occupied		—		—		—		—		—
Construction and development		—		—		—		—		—
Residential 1‑4 family		843		151		444		1,438		445
Consumer		76		27		13		116		13
Other		—		—		—		—		—
	$	1,177	$	446	$	2,946	$	4,569	$	2,463

The Company’s past due and non-accrual loans as of December 31, 2022 is summarized as follows:


			90 Days
	30-89 Days		or more
	Past Due		Past Due
	Accruing		and Accruing		Non-Accrual		Total
Commercial/industrial	$	192	$	—	$	418	$	610
Commercial real estate - owner occupied		1,301		—		2,688		3,989
Commercial real estate - non-owner occupied		—		—		—		—
Construction and development		237		—		17		254
Residential 1‑4 family		774		268		505		1,547
Consumer		19		5		—		24
Other		—		—		—		—
	$	2,523	$	273	$	3,628	$	6,424

Summary of impaired loans individually evaluated

Prior to the adoption of ASU 2016-13, the allowance included specific reserves for certain individually evaluated impaired loans. Specific reserves reflected estimated losses on impaired loans from management’s analysis developed through specific credit allocations. The following table shows a summary of impaired loans individually evaluated as of December 31, 2022:


			Commercial		Commercial
			Real Estate -		Real Estate -		Construction
	Commercial/		Owner		Non - Owner		and		Residential
	Industrial		Occupied		Occupied		Development		1‑4 Family		Consumer		Other		Total
With an allowance recorded:
Recorded investment	$	—	$	—	$	18	$	—	$	—	$	—	$	—	$	18
Unpaid principal balance		—		—		18		—		—		—		—		18
Related allowance		—		—		8		—		—		—		—		8

With no related allowance recorded:
Recorded investment	$	284	$	2,487	$	497	$	—	$	200	$	—	$	—	$	3,468
Unpaid principal balance		284		2,487		497		—		200		—		—		3,468
Related allowance		—		—		—		—		—		—		—		—

Total:
Recorded investment	$	284	$	2,487	$	515	$	—	$	200	$	—	$	—	$	3,486
Unpaid principal balance		284		2,487		515		—		200		—		—		3,486
Related allowance		—		—		8		—		—		—		—		8

Average recorded investment	$	361	$	3,726	$	1,017	$	—	$	237	$	—	$	—	$	5,341

Schedule of loans acquired with deteriorated credit quality

The following tables present loans acquired with deteriorated credit quality and the change in the accretable and non-accretable components of the related discounts prior to the adoption of ASU 2016-13.


	December 31, 2022
			Unpaid
	Recorded		Principal
	Investment		Balance
Commercial & Industrial	$	712	$	1,091
Commercial real estate - owner occupied		2,539		2,843
Commercial real estate - non-owner occupied		—		—
Construction and development		—		—
Residential 1‑4 family		824		1,045
Consumer		—		—
Other		—		—
	$	4,075	$	4,979