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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes
The following table presents the loan portfolio by segment and class, excluding residential mortgage LHFS, at June 30, 2022 and December 31, 2021:
June 30, 2022December 31, 2021
Commercial real estate:
Owner occupied$287,825 $238,668 
Non-owner occupied559,309 551,783 
Multi-family116,110 93,255 
Non-owner occupied residential109,141 106,112 
Acquisition and development:
1-4 family residential construction22,650 12,279 
Commercial and land development134,947 93,925 
Commercial and industrial (1)
379,729 485,728 
Municipal12,957 14,989 
Residential mortgage:
First lien202,787 198,831 
Home equity - term5,996 6,081 
Home equity - lines of credit171,269 160,705 
Installment and other loans14,909 17,630 
Total loans $2,017,629 $1,979,986 
(1) This balance includes $30.2 million and $189.9 million of SBA PPP loans, net of deferred fees and costs, at June 30, 2022 and December 31, 2021, respectively.
Loan Portfolio Ratings Based on Internal Risk Rating System The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at June 30, 2022 and December 31, 2021:
PassSpecial MentionNon-Impaired SubstandardImpaired - SubstandardDoubtfulPCI LoansTotal
June 30, 2022
Commercial real estate:
Owner occupied$274,188 $6,086 $2,375 $2,910 $— $2,266 $287,825 
Non-owner occupied547,382 9,221 2,409 — — 297 559,309 
Multi-family107,779 8,082 249 — — — 116,110 
Non-owner occupied residential105,680 2,261 503 98 — 599 109,141 
Acquisition and development:
1-4 family residential construction22,650 — — — — — 22,650 
Commercial and land development133,264 1,683 — — — — 134,947 
Commercial and industrial365,407 5,877 6,266 62 — 2,117 379,729 
Municipal12,957 — — — — — 12,957 
Residential mortgage:
First lien195,674 — 221 2,448 — 4,444 202,787 
Home equity - term5,974 — — 6 — 16 5,996 
Home equity - lines of credit170,834 — 46 389 — — 171,269 
Installment and other loans14,861 — — 42 — 6 14,909 
$1,956,650 $33,210 $12,069 $5,955 $— $9,745 $2,017,629 
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 $1,979,986 
Impaired Loans by Segment and Class
The following table, which excludes accruing PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at June 30, 2022 and December 31, 2021. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received.
Impaired Loans with a Specific AllowanceImpaired Loans with No Specific Allowance
Recorded Investment (Book Balance)Unpaid Principal Balance (Legal Balance)Related AllowanceRecorded Investment (Book Balance)Unpaid Principal Balance (Legal Balance)
June 30, 2022
Commercial real estate:
Owner-occupied$— $— $— $2,910 $3,862 
Non-owner occupied residential— — — 98 212 
Commercial and industrial— — — 62 336 
Residential mortgage:
First lien181 181 28 2,267 3,103 
Home equity—term— — — 6 9 
Home equity—lines of credit— — — 389 619 
Installment and other loans— — — 42 42 
$181 $181 $28 $5,774 $8,183 
December 31, 2021
Commercial real estate:
Owner-occupied$— $— $— $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 
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 three and six months ended June 30, 2022 and 2021:
20222021
Average
Impaired
Balance		Interest
Income
Recognized		Average
Impaired
Balance		Interest
Income
Recognized
Three Months Ended June 30,
Commercial real estate:
Owner-occupied$3,006 $— $4,072 $— 
Non-owner occupied residential99 — 259 — 
Commercial and industrial117 — 3,302 — 
Residential mortgage:
First lien2,310 8 2,542 10 
Home equity – term6 — 18 — 
Home equity - lines of credit408 — 547 — 
Installment and other loans49 — 13 — 
$5,995 $8 $10,753 $10 
Six Months Ended June 30,
Commercial real estate:
Owner occupied$3,236 $— $3,726 $1 
Multi-family— — 11 — 
Non-owner occupied residential103 — 263 — 
Acquisition and development:
Commercial and land development— — 351 — 
Commercial and industrial168 — 3,049 — 
Residential mortgage:
First lien2,369 15 2,593 21 
Home equity - term6 — 14 — 
Home equity - lines of credit419 — 581 — 
Installment and other loans46 — 12 — 
$6,347 $15 $10,600 $22 
Troubled Debt Restructurings
The following table presents impaired loans that are TDRs, with the recorded investment at June 30, 2022 and December 31, 2021:
June 30, 2022December 31, 2021
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing:
Residential mortgage:
First lien7 $568 8 $804 
7 568 8 804 
Nonaccruing:
Residential mortgage:
First lien6 264 5 285 
Installment and other loans1 4 — — 
7 268 5 285 
14 $836 13 $1,089 
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at June 30, 2022 and December 31, 2021:
Days Past Due
Current30-5960-8990+
(still accruing)		Total
Past Due		Non-
Accrual		Total
Loans
June 30, 2022
Commercial real estate:
Owner occupied$282,280 $369 $— $— $369 $2,910 $285,559 
Non-owner occupied558,928 84 — — 84 — 559,012 
Multi-family116,110 — — — — — 116,110 
Non-owner occupied residential108,324 120 — — 120 98 108,542 
Acquisition and development:
1-4 family residential construction22,650 — — — — — 22,650 
Commercial and land development134,947 — — — — — 134,947 
Commercial and industrial376,246 1,304 — — 1,304 62 377,612 
Municipal12,957 — — — — — 12,957 
Residential mortgage:
First lien195,825 123 466 49 638 1,880 198,343 
Home equity - term5,965 9 — — 9 6 5,980 
Home equity - lines of credit170,679 133 68 — 201 389 171,269 
Installment and other loans14,734 103 24 — 127 42 14,903 
Subtotal1,999,645 2,245 558 49 2,852 5,387 2,007,884 
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied2,266 — — — — — 2,266 
Non-owner occupied297 — — — — — 297 
Non-owner occupied residential484 — — 115 115 — 599 
Commercial and industrial2,117 — — — — — 2,117 
Residential mortgage:
First lien4,164 10 112 158 280 — 4,444 
Home equity - term16 — — — — — 16 
Installment and other loans6 — — — — — 6 
Subtotal9,350 10 112 273 395 — 9,745 
$2,008,995 $2,255 $670 $322 $3,247 $5,387 $2,017,629 
Days Past Due
Current30-5960-8990+
(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 residential479 — 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 
Summary of Activity in the ALL and Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment The following table presents the activity in the ALL for the three and six months ended June 30, 2022 and 2021:
CommercialConsumer
Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
Three Months Ended
June 30, 2022
Balance, beginning of period$11,546 $2,321 $4,301 $29 $18,197 $2,873 $201 $3,074 $237 $21,508 
Provision for loan losses748 695 184 (3)1,624 127 24 151 — 1,775 
Charge-offs— — (54)— (54)— (5)(5)— (59)
Recoveries— 8 40 — 48 4 3 7 — 55 
Balance, end of period$12,294 $3,024 $4,471 $26 $19,815 $3,004 $223 $3,227 $237 $23,279 
June 30, 2021
Balance, beginning of period$10,671 $1,046 $3,714 $38 $15,469 $3,058 $208 $3,266 $232 $18,967 
Provision for loan losses806 197 (223)(9)771 (142)19 (123)(23)625 
Charge-offs(181)— (112)— (293)(71)(9)(80)— (373)
Recoveries19 — 116 — 135 18 9 27 — 162 
Balance, end of period$11,315 $1,243 $3,495 $29 $16,082 $2,863 $227 $3,090 $209 $19,381 
Six Months Ended
June 30, 2022
Balance, beginning of period$12,037 $2,062 $3,814 $30 $17,943 $2,785 $215 $3,000 $237 $21,180 
Provision for loan losses225 953 684 (4)1,858 199 18 217 — 2,075 
Charge-offs— — (115)— (115)(10)(18)(28)— (143)
Recoveries32 9 88 — 129 30 8 38 — 167 
Balance, end of period$12,294 $3,024 $4,471 $26 $19,815 $3,004 $223 $3,227 $237 $23,279 
June 30, 2021
Balance, beginning of period$11,151 $1,114 $3,942 $40 $16,247 $3,362 $324 $3,686 $218 $20,151 
Provision for loan losses312 128 (277)(11)152 (431)(87)(518)(9)(375)
Charge-offs(181)— (566)— (747)(92)(29)(121)— (868)
Recoveries33 1 396 — 430 24 19 43 — 473 
Balance, end of period$11,315 $1,243 $3,495 $29 $16,082 $2,863 $227 $3,090 $209 $19,381 
The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at June 30, 2022 and December 31, 2021. Accruing PCI loans are excluded from loans individually evaluated for impairment.
 CommercialConsumer  
Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
June 30, 2022
Loans allocated by:
Individually evaluated for impairment
$3,008 $— $62 $— $3,070 $2,843 $42 $2,885 $— $5,955 
Collectively evaluated for impairment
1,069,377 157,597 379,667 12,957 1,619,598 377,209 14,867 392,076 — 2,011,674 
$1,072,385 $157,597 $379,729 $12,957 $1,622,668 $380,052 $14,909 $394,961 $— $2,017,629 
ALL allocated by:
Individually evaluated for impairment
$— $— $— $— $— $28 $— $28 $— $28 
Collectively evaluated for impairment
12,294 3,024 4,471 26 19,815 2,976 223 3,199 237 23,251 
$12,294 $3,024 $4,471 $26 $19,815 $3,004 $223 $3,227 $237 $23,279 
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 
ALL 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 
Schedule of Activity for the Accretable Yield of Purchased Impaired Loans The following table provides activity for the accretable yield on purchased impaired loans for the three and six months ended June 30, 2022 and 2021, respectively:
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Accretable yield, beginning of period$2,517 $3,072 $2,661 $3,438 
Accretion of income(276)(209)(590)(676)
Reclassifications from nonaccretable difference due to improvement in expected cash flows102 74 345 118 
Other changes, net77 79 4 136 
Accretable yield, end of period$2,420 $3,016 $2,420 $3,016