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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale
The following table presents the loan portfolio by segment and class, excluding residential LHFS, at December 31, 2021 and December 31, 2020.
20212020
Commercial real estate:
Owner-occupied$238,668 $174,908 
Non-owner occupied551,783 409,567 
Multi-family93,255 113,635 
Non-owner occupied residential106,112 114,505 
Acquisition and development:
1-4 family residential construction12,279 9,486 
Commercial and land development93,925 51,826 
Commercial and industrial (1)
485,728 647,368 
Municipal14,989 20,523 
Residential mortgage:
First lien198,831 244,321 
Home equity – term6,081 10,169 
Home equity – lines of credit160,705 157,021 
Installment and other loans17,630 26,361 
Total loans$1,979,986 $1,979,690 
(1) This balance includes $189.9 million and $403.3 million of SBA PPP loans, net of deferred fees and costs, at December 31, 2021 and December 31, 2020, respectively.
Summary of Ratings Based on Internal Risk Rating System The following summarizes the Company’s loan portfolio ratings based on its internal risk rating system at December 31, 2021 and 2020:
Pass
Special
Mention
Non-Impaired
Substandard
Impaired -
Substandard
DoubtfulPCI LoansTotal
December 31, 2021
Commercial real estate:
Owner-occupied$219,250 $7,239 $6,087 $3,763 $— $2,329 $238,668 
Non-owner occupied528,010 23,297 166 — — 310 551,783 
Multi-family84,414 8,238 603 — — — 93,255 
Non-owner occupied residential102,588 1,065 1,153 122 — 1,184 106,112 
Acquisition and development:
1-4 family residential construction12,279 — — — — — 12,279 
Commercial and land development92,049 1,385 491 — — — 93,925 
Commercial and industrial470,579 7,917 4,720 250 — 2,262 485,728 
Municipal14,989 — — — — — 14,989 
Residential mortgage:
First lien191,386 — 225 2,635 — 4,585 198,831 
Home equity – term6,058 — — 7 — 16 6,081 
Home equity – lines of credit160,203 20 46 436 — — 160,705 
Installment and other loans17,584 — — 40 — 6 17,630 
$1,899,389 $49,161 $13,491 $7,253 $— $10,692 $1,979,986 
December 31, 2020
Commercial real estate:
Owner-occupied$148,846 $12,491 $7,855 $3,260 $— $2,456 $174,908 
Non-owner occupied351,860 57,378 — — — 329 409,567 
Multi-family92,769 20,224 642 — — — 113,635 
Non-owner occupied residential107,557 3,948 1,422 268 — 1,310 114,505 
Acquisition and development:
1-4 family residential construction
9,101 385 — — — — 9,486 
Commercial and land development49,832 655 525 814 — — 51,826 
Commercial and industrial617,213 17,561 6,118 3,639 — 2,837 647,368 
Municipal20,523 — — — — — 20,523 
Residential mortgage:
First lien236,381 — — 2,628 — 5,312 244,321 
Home equity – term10,076 — 64 10 — 19 10,169 
Home equity – lines of credit156,264 95 54 608 — — 157,021 
Installment and other loans26,283 — — 17 — 61 26,361 
$1,826,705 $112,737 $16,680 $11,244 $— $12,324 $1,979,690 
Summary of Impaired Loans by Class
The following table, which excludes accruing PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at December 31, 2021 and 2020. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending and any partial charge-off will be recorded when final information is received.
 
 Impaired Loans with a Specific AllowanceImpaired Loans with No Specific Allowance
Recorded
Investment
(Book Balance)
Unpaid
Principal Balance
(Legal Balance)
Related
Allowance
Recorded
Investment
(Book Balance)
Unpaid
Principal Balance
(Legal Balance)
December 31, 2021
Commercial real estate:
Owner-occupied$— $— $— $3,763 $4,902 
Non-owner occupied residential— — — 122 259 
Commercial and industrial— — — 250 547 
Residential mortgage:
First lien341 341 28 2,294 3,337 
Home equity—term— — — 7 10 
Home equity—lines of credit— — — 436 653 
Installment and other loans— — — 40 40 
$341 $341 $28 $6,912 $9,748 
December 31, 2020
Commercial real estate:
Owner-occupied$— $— $— $3,260 $4,091 
Non-owner occupied residential— — — 268 393 
Acquisition and development:
Commercial and land development— — — 814 875 
Commercial and industrial— — — 3,639 4,269 
Residential mortgage:
First lien424 508 33 2,204 3,264 
Home equity—term— — — 10 13 
Home equity—lines of credit— — — 608 832 
Installment and other loans— — — 17 18 
$424 $508 $33 $10,820 $13,755 
Summary of Average Recorded Investment in Impaired Loans and Related Interest Income The following table, which excludes accruing PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the years ended December 31, 2021, 2020 and 2019.
 202120202019
Average
Impaired
Balance
Interest
Income
Recognized
Average
Impaired
Balance
Interest
Income
Recognized
Average
Impaired
Balance
Interest
Income
Recognized
Commercial real estate:
Owner-occupied$3,825 $1 $4,636 $1 $2,455 $2 
Non-owner occupied— — 83 — 46 — 
Multi-family— — 205 — 152 — 
Non-owner occupied residential225 — 388 — 217 — 
Acquisition and development:
Commercial and land development187 — 641 — 21 — 
Commercial and industrial3,030 — 1,196 — 683 — 
Residential mortgage:
First lien2,539 43 2,995 48 2,582 50 
Home equity – term11 — 11 — 13 — 
Home equity – lines of credit521 — 692 1 750 2 
Installment and other loans25 — 25 — 13 — 
$10,363 $44 $10,872 $50 $6,932 $54 
Schedule of Impaired Loans that are TDRs
The following table presents impaired loans that are TDRs, with the recorded investment at December 31, 2021 and 2020.
 
 20212020
Number of
Contracts
Recorded
Investment
Number of
Contracts
Recorded
Investment
Accruing:
Commercial real estate:
Owner-occupied— $— 1 $28 
Residential mortgage:
First lien8 804 9 898 
Home equity - lines of credit— — 1 8 
8 804 11 934 
Nonaccruing:
Residential mortgage:
First lien5 285 5 320 
5 285 5 320 
13 $1,089 16 $1,254 
Schedule of Number of Loans Modified The following table presents the number of loans modified as TDRs, and their pre-modification and post-modification investment balances for the year ended December 31, 2019. There were no loans modified as TDRs during 2021 and 2020.
Number of
Contracts
Pre-
Modification
Investment
Balance
Post-
Modification
Investment
Balance
December 31, 2019
Commercial real estate:
Owner-occupied3 $1,866 $1,881 
Schedule of Classes of Loan Portfolio Summarized by Aging Categories The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans at December 31, 2021 and 2020.
  Days Past Due   
Current30-5960-89
90+
(still accruing)
Total
Past Due
Non-
Accrual
Total
Loans
December 31, 2021
Commercial real estate:
Owner-occupied$231,371 $314 $— $891 $1,205 $3,763 $236,339 
Non-owner occupied551,473 — — — — — 551,473 
Multi-family93,255 — — — — — 93,255 
Non-owner occupied residential104,645 161 — — 161 122 104,928 
Acquisition and development:
1-4 family residential construction12,279 — — — — — 12,279 
Commercial and land development93,793 132 — — 132 — 93,925 
Commercial and industrial483,088 128 — — 128 250 483,466 
Municipal14,989 — — — — — 14,989 
Residential mortgage:
First lien189,043 2,995 281 96 3,372 1,831 194,246 
Home equity – term6,042 16 — — 16 7 6,065 
Home equity – lines of credit159,628 641 — — 641 436 160,705 
Installment and other loans17,467 109 8 — 117 40 17,624 
Subtotal1,957,073 4,496 289 987 5,772 6,449 1,969,294 
Loans acquired with credit deterioration:
Commercial real estate:
Owner-occupied2,329 — — — — — 2,329 
Non-owner occupied310 — — — — — 310 
Non-owner occupied residential
479 — 587 118 705 — 1,184 
Commercial and industrial2,262 — — — — — 2,262 
Residential mortgage:
First lien3,937 387 166 95 648 — 4,585 
Home equity – term15 — — 1 1 — 16 
Installment and other loans6 — — — — — 6 
Subtotal9,338 387 753 214 1,354 — 10,692 
$1,966,411 $4,883 $1,042 $1,201 $7,126 $6,449 $1,979,986 
Days Past Due
Current30-5960-89
90+
(still accruing)
Total
Past Due
Non-
Accrual
Total
Loans
December 31, 2020
Commercial real estate:
Owner-occupied$168,262 $958 $— $— $958 $3,232 $172,452 
Non-owner occupied409,130 108 — — 108 — 409,238 
Multi-family113,635 — — — — — 113,635 
Non-owner occupied residential112,443 484 — — 484 268 113,195 
Acquisition and development:
1-4 family residential construction9,486 — — — — — 9,486 
Commercial and land development50,922 32 58 — 90 814 51,826 
Commercial and industrial640,573 9 310 — 319 3,639 644,531 
Municipal19,677 846 — — 846 — 20,523 
Residential mortgage:
First lien230,903 5,758 535 83 6,376 1,730 239,009 
Home equity – term10,099 40 — 1 41 10 10,150 
Home equity – lines of credit156,153 268 — — 268 600 157,021 
Installment and other loans26,052 168 49 14 231 17 26,300 
Subtotal1,947,335 8,671 952 98 9,721 10,310 1,967,366 
Loans acquired with credit deterioration:
Commercial real estate:
Owner-occupied2,456 — — — — — 2,456 
Non-owner occupied329 — — — — — 329 
Non-owner occupied residential1,161 — — 149 149 — 1,310 
Commercial and industrial2,837 — — — — — 2,837 
Residential mortgage:
First lien4,341 655 9 307 971 — 5,312 
Home equity – term19 — — — — — 19 
Installment and other loans57 4 — — 4 — 61 
Subtotal11,200 659 9 456 1,124 — 12,324 
$1,958,535 $9,330 $961 $554 $10,845 $10,310 $1,979,690 
Schedule of Activity in Allowance for Loan Losses
The following table presents activity in the ALL for the years ended December 31, 2021, 2020 and 2019.
 CommercialConsumer  
Commercial
Real Estate
Acquisition
and
Development
Commercial
and
Industrial
MunicipalTotal
Residential
Mortgage
Installment
and Other
TotalUnallocatedTotal
December 31, 2021
Balance, beginning of year
$11,151 $1,114 $3,942 $40 $16,247 $3,362 $324 $3,686 $218 $20,151 
Provision for loan losses710 938 23 (10)1,661 (517)(73)(590)19 1,090 
Charge-offs(293)— (663)— (956)(92)(70)(162)— (1,118)
Recoveries469 10 512 — 991 32 34 66 — 1,057 
Balance, end of year
$12,037 $2,062 $3,814 $30 $17,943 $2,785 $215 $3,000 $237 $21,180 
December 31, 2020
Balance, beginning of year
$7,634 $959 $2,356 $100 $11,049 $3,147 $319 $3,466 $140 $14,655 
Provision for loan losses2,745 146 2,096 (60)4,927 203 117 320 78 5,325 
Charge-offs(3)— (748)— (751)(114)(146)(260)— (1,011)
Recoveries775 9 238 — 1,022 126 34 160 — 1,182 
Balance, end of year
$11,151 $1,114 $3,942 $40 $16,247 $3,362 $324 $3,686 $218 $20,151 
December 31, 2019
Balance, beginning of year
$6,876 $817 $1,656 $98 $9,447 $3,753 $244 $3,997 $570 $14,014 
Provision for loan losses515 139 841 2 1,497 (347)180 (167)(430)900 
Charge-offs(25)— (299)— (324)(386)(155)(541)— (865)
Recoveries268 3 158 — 429 127 50 177 — 606 
Balance, end of year
$7,634 $959 $2,356 $100 $11,049 $3,147 $319 $3,466 $140 $14,655 
Summary of Ending Loan Balance Individually Evaluated for Impairment The following table summarizes the ending loan balances individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at December 31, 2021 and 2020. Accruing PCI loans are excluded from loans individually evaluated for impairment.
 CommercialConsumer  
Commercial
Real Estate
Acquisition
and
Development
Commercial
and
Industrial
MunicipalTotal
Residential
Mortgage
Installment
and Other
TotalUnallocatedTotal
December 31, 2021
Loans allocated by:
Individually evaluated for impairment
$3,885 $— $250 $— $4,135 $3,078 $40 $3,118 $— $7,253 
Collectively evaluated for impairment
985,933 106,204 485,478 14,989 1,592,604 362,539 17,590 380,129 — 1,972,733 
$989,818 $106,204 $485,728 $14,989 $1,596,739 $365,617 $17,630 $383,247 $— $1,979,986 
Allowance for loan losses allocated by:
Individually evaluated for impairment
$— $— $— $— $— $28 $— $28 $— $28 
Collectively evaluated for impairment
12,037 2,062 3,814 30 17,943 2,757 215 2,972 237 21,152 
$12,037 $2,062 $3,814 $30 $17,943 $2,785 $215 $3,000 $237 $21,180 
December 31, 2020
Loans allocated by:
Individually evaluated for impairment
$3,528 $814 $3,639 $— $7,981 $3,246 $17 $3,263 $— $11,244 
Collectively evaluated for impairment
809,087 60,498 643,729 20,523 1,533,837 408,265 26,344 434,609 — 1,968,446 
$812,615 $61,312 $647,368 $20,523 $1,541,818 $411,511 $26,361 $437,872 $— $1,979,690 
Allowance for loan losses allocated by:
Individually evaluated for impairment
$— $— $— $— $— $33 $— $33 $— $33 
Collectively evaluated for impairment
11,151 1,114 3,942 40 16,247 3,329 324 3,653 218 20,118 
$11,151 $1,114 $3,942 $40 $16,247 $3,362 $324 $3,686 $218 $20,151 
Schedule of Activity for the Accretable Yield of Purchased Impaired Loans
The following table provides activity for the accretable yield of purchased impaired loans for the years ended December 31, 2021 and 2020.
20212020
Accretable yield, beginning of period$3,438 $6,950 
Additions (1)
— 570 
Accretion of income(1,093)(3,457)
Reclassifications from nonaccretable difference due to improvement in expected cash flows160 1,871 
Other changes, net (2)
156 (2,496)
Accretable yield, end of period$2,661 $3,438 

(1) The amount for the year ended December 31, 2020 reflects a measurement period adjustment for Hamilton loans that should have been in the PCI pool at the acquisition date.
(2) The amount for the year ended December 31, 2020 represents the impact of purchased credit impaired loans sold during that year.