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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Loans by portfolio segment
Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):
December 31, 2023December 31, 2022
Real estate loans:
Construction$789,744 $559,681 
1-4 family residential696,738 663,519 
Commercial 2,168,451 1,987,707 
Commercial loans366,893 412,064 
Municipal loans441,168 450,067 
Loans to individuals61,516 74,653 
Total loans4,524,510 4,147,691 
Less: Allowance for loan losses42,674 36,515 
Net loans$4,481,836 $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):
December 31, 2023Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20232022202120202019Prior
Construction real estate:
Pass$132,838 $236,573 $196,311 $37,997 $3,938 $6,457 $144,358 $758,472 
Pass watch— 7,798 — — — — — 7,798 
Special mention13,166 9,456 698 — 7 — — 23,327 
Substandard36 — 68 — — 43 — 147 
Doubtful— — — — — — — — 
Total construction real estate$146,040 $253,827 $197,077 $37,997 $3,945 $6,500 $144,358 $789,744 
Current period gross charge-offs$— $92 $— $— $— $— $— $92 
1-4 family residential real estate:
Pass$41,520 $126,981 $145,671 $114,631 $63,710 $196,651 $1,803 $690,967 
Pass watch— — — 32 — — — 32 
Special mention— — — 75 — — — 75 
Substandard325 — 73 1,379 — 3,259 74 5,110 
Doubtful— — — 163 — 391 — 554 
Total 1-4 family residential real estate$41,845 $126,981 $145,744 $116,280 $63,710 $200,301 $1,877 $696,738 
Current period gross charge-offs$— $— $— $— $1 $118 $— $119 
Commercial real estate:
Pass$469,844 $641,577 $495,363 $143,150 $91,085 $189,021 $16,493 $2,046,533 
Pass watch24,300 34,424 255 1,037 333 146 — 60,495 
Special mention17,403 — — — 9,746 25,072 — 52,221 
Substandard— 862 95 269 1,565 6,346 — 9,137 
Doubtful— — — — 65 — — 65 
Total commercial real estate$511,547 $676,863 $495,713 $144,456 $102,794 $220,585 $16,493 $2,168,451 
Current period gross charge-offs$— $— $— $— $788 $— $— $788 
Commercial loans:
Pass$78,090 $62,192 $42,114 $10,708 $4,356 $3,310 $161,153 $361,923 
Pass watch— 128 117 — — 18 — 263 
Special mention191 174 — 16 — 162 — 543 
Substandard14 2,357 73 — 65 12 821 3,342 
Doubtful238 267 133 — 64 120 — 822 
Total commercial loans$78,533 $65,118 $42,437 $10,724 $4,485 $3,622 $161,974 $366,893 
Current period gross charge-offs$745 $440 $44 $26 $23 $5 $— $1,283 
Municipal loans:
Pass$39,028 $61,429 $68,979 $49,746 $39,949 $182,037 $— $441,168 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total municipal loans$39,028 $61,429 $68,979 $49,746 $39,949 $182,037 $— $441,168 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Loans to individuals:
Pass$22,788 $15,503 $11,588 $6,256 $2,180 $941 $2,216 $61,472 
Pass watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — 13 — — 13 
Doubtful4 17 — 10 — — — 31 
Total loans to individuals$22,792 $15,520 $11,588 $6,266 $2,193 $941 $2,216 $61,516 
Current period gross charge-offs (1)
$1,682 $54 $61 $20 $6 $99 $— $1,922 
Total loans$839,785 $1,199,738 $961,538 $365,469 $217,076 $613,986 $326,918 $4,524,510 
Total current period gross charge-offs (1)
$2,427 $586 $105 $46 $818 $222 $— $4,204 
(1) Includes $1.7 million 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):
 December 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$474 $— $29 $503 $789,241 $789,744 
1-4 family residential4,638 774 1,700 7,112 689,626 696,738 
Commercial621 34 40 695 2,167,756 2,168,451 
Commercial loans1,693 347 127 2,167 364,726 366,893 
Municipal loans27 — — 27 441,141 441,168 
Loans to individuals107 1 10 118 61,398 61,516 
Total$7,560 $1,156 $1,906 $10,622 $4,513,888 $4,524,510 
 December 31, 2022
 30-59 Days
Past Due		60-89 Days
 Past Due		Greater 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):
 December 31, 2023December 31, 2022
Nonaccrual loans:
Real estate loans:
Construction$29 $405 
1-4 family residential2,093 848 
Commercial528 762 
Commercial loans1,208 757 
Loans to individuals31 74 
Total nonaccrual loans (1)
3,889 2,846 
Accruing loans past due more than 90 days— — 
Restructured loans (2)
13 7,849 
OREO99 93 
Repossessed assets— 74 
Total nonperforming assets$4,001 $10,862 
(1)    Includes $506,000 and $897,000 of restructured loans as of December 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 December 31, 2023 exclude any loan modifications that are performing but would have previously required disclosure as troubled debt restructures.
Troubled debt restructurings
The following table sets forth the recorded balance of restructured loans and type of modification by class of loans during the periods presented (dollars in thousands):
 Year Ended December 31, 2023
 Amortization
 Period Extension		Interest Rate ReductionCombinationTotal ModificationsNumber of LoansPercent of Total Class
Commercial loans$603 $— $64 $667 5 0.18 %
Total$603 $— $64 $667 5 
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):
 Year Ended December 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 (1)
(92)(119)(788)(1,283)— (1,922)(4,204)
Recoveries of loans charged-off2 110 1 298 — 1,043 1,454 
Net loans (charged-off) recovered(90)(9)(787)(985)— (879)(2,750)
Provision for (reversal of) loan losses2,213 676 4,352 836 (26)858 8,909 
Balance at end of period$5,287 $2,840 $32,266 $2,086 $19 $176 $42,674 
Year Ended December 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— (69)— (792)— (1,723)(2,584)
Recoveries of loans charged-off2 107 81 593 — 1,105 1,888 
Net loans (charged-off) recovered2 38 81 (199)— (618)(696)
Provision for (reversal of) loan losses(625)269 1,640 37 (2)619 1,938 
Balance at end of period$3,164 $2,173 $28,701 $2,235 $45 $197 $36,515 
Year Ended December 31, 2021
Real Estate
Construction
1-4 Family
Residential
Commercial
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$6,490 $2,270 $35,709 $4,107 $46 $384 $49,006 
Loans charged-off— (136)— (1,004)— (1,611)(2,751)
Recoveries of loans charged-off2 75 87 674 — 1,142 1,980 
Net loans (charged-off) recovered2 (61)87 (330)— (469)(771)
Provision for (reversal of) loan losses(2,705)(343)(8,816)(1,380)1 281 (12,962)
Balance at end of period$3,787 $1,866 $26,980 $2,397 $47 $196 $35,273 
(1)    Included in charge-offs for the year ended December 31, 2023 is a $788,000 write down to fair value an $8.1 million commercial real estate loan relationship transferred to held for sale.