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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Loans by Portfolio Segment
Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):    
March 31, 2023December 31, 2022
Real estate loans:  
Construction$591,894 $559,681 
1-4 family residential672,595 663,519 
Commercial1,990,861 1,987,707 
Commercial loans388,182 412,064 
Municipal loans438,566 450,067 
Loans to individuals70,546 74,653 
Total loans4,152,644 4,147,691 
Less: Allowance for loan losses36,332 36,515 
Net loans$4,116,312 $4,111,176 
Summary of loans by credit quality indicators and origination year
The following tables set forth the amortized cost basis by class of financing receivable and credit quality indicator for the periods presented (in thousands):
March 31, 2023Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20232022202120202019Prior
Construction real estate:
Pass$22,665 $179,803 $176,130 $37,195 $6,980 $7,789 $141,330 $571,892 
Pass watch— 2,434 — — — — 14,808 17,242 
Special mention— 822 1,010 — 9 — — 1,841 
Substandard— — — — — 229 — 229 
Doubtful— 299 43 — 348 — — 690 
Total construction real estate$22,665 $183,358 $177,183 $37,195 $7,337 $8,018 $156,138 $591,894 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
1-4 family residential real estate:
Pass$13,984 $92,684 $144,451 $126,154 $68,073 $220,774 $2,123 $668,243 
Pass watch— — — — — — — — 
Special mention— — — 78 — 1,381 — 1,459 
Substandard— 2 64 210 124 2,146 42 2,588 
Doubtful— — — — — 305 — 305 
Total 1-4 family residential real estate$13,984 $92,686 $144,515 $126,442 $68,197 $224,606 $2,165 $672,595 
Current period gross charge-offs$— $— $— $— $— $49 $— $49 
Commercial real estate:
Pass$137,028 $754,591 $523,896 $156,316 $111,505 $263,451 $10,180 $1,956,967 
Pass watch— — 9,001 — 349 — — 9,350 
Special mention— — — 1,820 437 945 — 3,202 
Substandard— — — 278 14,395 6,484 — 21,157 
Doubtful— — — — 73 112 — 185 
Total commercial real estate$137,028 $754,591 $532,897 $158,414 $126,759 $270,992 $10,180 $1,990,861 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial loans:
Pass$17,642 $101,347 $61,883 $16,062 $7,209 $6,968 $161,646 $372,757 
Pass watch— 73 149 — — — 199 421 
Special mention— 183 4,996 27 — 269 8,318 13,793 
Substandard— 418 190 — 86 25 — 719 
Doubtful— 67 73 50 109 193 — 492 
Total commercial loans$17,642 $102,088 $67,291 $16,139 $7,404 $7,455 $170,163 $388,182 
Current period gross charge-offs$— $84 $11 $14 $— $— $— $109 
Municipal loans:
Pass$5,679 $63,464 $73,606 $55,338 $45,918 $187,652 $— $431,657 
Pass watch— — — — 507 6,402 — 6,909 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$5,679 $63,464 $73,606 $55,338 $46,425 $194,054 $— $438,566 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Loans to individuals:
Pass$7,504 $24,621 $18,476 $10,868 $4,219 $2,092 $2,704 $70,484 
Pass watch— — — — — — 10 10 
Special mention— — — — — — — — 
Substandard— — — — 5 4 — 9 
Doubtful— — 6 — 17 20 — 43 
Total loans to individuals$7,504 $24,621 $18,482 $10,868 $4,241 $2,116 $2,714 $70,546 
Current period gross charge-offs (1)
$391 $24 $6 $2 $— $52 $— $475 
Total loans$204,502 $1,220,808 $1,013,974 $404,396 $260,363 $707,241 $341,360 $4,152,644 
Total current period gross charge-offs (1)
$391 $108 $17 $16 $— $101 $— $633 
(1) Includes $391,000 in charged off demand deposit overdrafts reported as 2023 originations.
December 31, 2022Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20222021202020192018Prior
Construction real estate:
Pass$169,652 $184,501 $34,537 $7,091 $1,844 $6,434 $152,530 $556,589 
Pass watch299 — — — — — — 299 
Special mention1,858 290 — — — — — 2,148 
Substandard— — — 10 42 194 — 246 
Doubtful— 44 — 355 — — — 399 
Total construction real estate$171,809 $184,835 $34,537 $7,456 $1,886 $6,628 $152,530 $559,681 
1-4 family residential real estate:
Pass$82,847 $144,424 $128,666 $70,142 $36,710 $194,490 $2,160 $659,439 
Pass watch— — — — — — — — 
Special mention— — 79 — 1,397 — — 1,476 
Substandard3 — 217 54 32 1,942 43 2,291 
Doubtful— — — — 173 140 — 313 
Total 1-4 family residential real estate$82,850 $144,424 $128,962 $70,196 $38,312 $196,572 $2,203 $663,519 
Commercial real estate:
Pass$798,653 $546,938 $168,607 $136,440 $55,480 $233,509 $12,315 $1,951,942 
Pass watch— 9,219 — — — — — 9,219 
Special mention— — 1,832 330 115 1,849 — 4,126 
Substandard— — 281 14,603 260 6,992 — 22,136 
Doubtful— — — 76 — 208 — 284 
Total commercial real estate$798,653 $556,157 $170,720 $151,449 $55,855 $242,558 $12,315 $1,987,707 
Commercial loans:
Pass$113,678 $68,509 $17,852 $8,249 $4,820 $3,313 $178,951 $395,372 
Pass watch208 13 56 — — — — 277 
Special mention— 5,109 31 — 288 — 9,986 15,414 
Substandard220 116 70 110 12 9 — 537 
Doubtful68 100 — 86 210 — — 464 
Total commercial loans$114,174 $73,847 $18,009 $8,445 $5,330 $3,322 $188,937 $412,064 
Municipal loans:
Pass$65,258 $74,617 $57,147 $47,636 $24,576 $173,919 $— $443,153 
Pass watch— — — 508 403 6,003 — 6,914 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$65,258 $74,617 $57,147 $48,144 $24,979 $179,922 $— $450,067 
Loans to individuals:
Pass$29,579 $21,480 $12,651 $5,261 $1,665 $1,005 $2,935 $74,576 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— 1 — 6 — 2 — 9 
Doubtful7 — — 18 40 3 — 68 
Total loans to individuals$29,586 $21,481 $12,651 $5,285 $1,705 $1,010 $2,935 $74,653 
Total loans$1,262,330 $1,055,361 $422,026 $290,975 $128,067 $630,012 $358,920 $4,147,691 
Aging of past due loans by class of loan
The following tables present the aging of the amortized cost basis in past due loans by class of loans (in thousands):
 March 31, 2023
 
30-59 Days
Past Due
60-89 Days
Past Due
Greater than 90 Days Past Due
Total Past
Due
CurrentTotal
Real estate loans:     
Construction$455 $299 $— $754 $591,140 $591,894 
1-4 family residential2,562 48 359 2,969 669,626 672,595 
Commercial763 — 39 802 1,990,059 1,990,861 
Commercial loans1,929 315 94 2,338 385,844 388,182 
Municipal loans— — — — 438,566 438,566 
Loans to individuals221 — 19 240 70,306 70,546 
Total$5,930 $662 $511 $7,103 $4,145,541 $4,152,644 
December 31, 2022
30-59 Days Past Due60-89 Days Past DueGreater than 90 Days
Past Due
Total Past
Due
CurrentTotal
Real estate loans:
Construction$43 $21 $— $64 $559,617 $559,681 
1-4 family residential3,529 368 214 4,111 659,408 663,519 
Commercial105 153 415 673 1,987,034 1,987,707 
Commercial loans515 277 247 1,039 411,025 412,064 
Municipal loans— — — — 450,067 450,067 
Loans to individuals203 3 40 246 74,407 74,653 
Total$4,395 $822 $916 $6,133 $4,141,558 $4,147,691 
Nonperforming assets by asset class
The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands):
 March 31, 2023December 31, 2022
Nonaccrual loans:
Real estate loans:
Construction$695 $405 
1-4 family residential933 848 
Commercial582 762 
Commercial loans911 757 
Loans to individuals48 74 
Total nonaccrual loans (1)
3,169 2,846 
Accruing loans past due more than 90 days— — 
Restructured loans (2)
— 7,849 
OREO— 93 
Repossessed assets11 74 
Total nonperforming assets$3,180 $10,862 

(1)    Includes $179,000 and $897,000 of restructured loans as of March 31, 2023 and December 31, 2022, respectively.
(2) Pursuant to our adoption of ASU 2022-02, effective January 1, 2023, we prospectively discontinued the recognition and measurement guidance previously required on troubled debt restructures. As a result, “restructured” loans as of March 31, 2023 exclude any loan modifications that are performing but would have previously required disclosure as troubled debt restructures.
Allowance for loan losses activity by portfolio segment
The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands):
 Three Months Ended March 31, 2023
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,164 $2,173 $28,701 $2,235 $45 $197 $36,515 
Loans charged-off— (49)— (109)— (475)(633)
Recoveries of loans charged-off1 5 — 60 — 296 362 
Net loans (charged-off) recovered1 (44)— (49)— (179)(271)
Provision for (reversal of) loan losses(13)185 20 (285)(1)182 88 
Balance at end of period$3,152 $2,314 $28,721 $1,901 $44 $200 $36,332 
 Three Months Ended March 31, 2022
 Real Estate    
 Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,787 $1,866 $26,980 $2,397 $47 $196 $35,273 
Loans charged-off— — — (131)— (424)(555)
Recoveries of loans charged-off— 39 47 216 — 238 540 
Net loans (charged-off) recovered— 39 47 85 — (186)(15)
Provision for (reversal of) loan losses (183)77 198 (28)1 201 266 
Balance at end of period$3,604 $1,982 $27,225 $2,454 $48 $211 $35,524