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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 9 Months Ended
Sep. 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 September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
Commercial real estate:
Owner occupied$313,125 $238,668 
Non-owner occupied573,605 551,783 
Multi-family114,561 93,255 
Non-owner occupied residential105,267 106,112 
Acquisition and development:
1-4 family residential construction20,810 12,279 
Commercial and land development148,512 93,925 
Commercial and industrial (1)
378,574 485,728 
Municipal12,683 14,989 
Residential mortgage:
First lien220,970 198,831 
Home equity - term5,869 6,081 
Home equity - lines of credit180,267 160,705 
Installment and other loans13,684 17,630 
Total loans $2,087,927 $1,979,986 
(1) This balance includes $17.0 million and $189.9 million of SBA PPP loans, net of deferred fees and costs, at September 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 September 30, 2022 and December 31, 2021:
PassSpecial MentionNon-Impaired SubstandardImpaired - SubstandardDoubtfulPCI LoansTotal
September 30, 2022
Commercial real estate:
Owner occupied$302,001 $3,392 $2,649 $2,849 $— $2,234 $313,125 
Non-owner occupied566,996 3,931 2,388 — — 290 573,605 
Multi-family106,306 8,010 245 — — — 114,561 
Non-owner occupied residential102,136 1,979 493 90 — 569 105,267 
Acquisition and development:
1-4 family residential construction20,810 — — — — — 20,810 
Commercial and land development132,621 15,891 — — — — 148,512 
Commercial and industrial349,319 20,891 6,236 45 — 2,083 378,574 
Municipal12,683 — — — — — 12,683 
Residential mortgage:
First lien213,812 — 223 2,593 — 4,342 220,970 
Home equity - term5,849 — — 5 — 15 5,869 
Home equity - lines of credit179,850 — 45 372 — — 180,267 
Installment and other loans13,639 — — 38 — 7 13,684 
$2,006,022 $54,094 $12,279 $5,992 $— $9,540 $2,087,927 
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 $1,979,986 
Impaired Loans by Segment and Class
The following table, which excludes accruing PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at September 30, 2022 and December 31, 2021. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received.
Impaired Loans with a Specific AllowanceImpaired Loans with No Specific Allowance
Recorded Investment (Book Balance)Unpaid Principal Balance (Legal Balance)Related AllowanceRecorded Investment (Book Balance)Unpaid Principal Balance (Legal Balance)
September 30, 2022
Commercial real estate:
Owner-occupied$— $— $— $2,849 $3,840 
Non-owner occupied residential— — — 90 211 
Commercial and industrial— — — 45 306 
Residential mortgage:
First lien233 233 28 2,360 3,181 
Home equity—term— — — 5 8 
Home equity—lines of credit— — — 372 609 
Installment and other loans— — — 38 38 
$233 $233 $28 $5,759 $8,193 
December 31, 2021
Commercial real estate:
Owner-occupied$— $— $— $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 nine months ended September 30, 2022 and 2021:
20222021
Average
Impaired
Balance		Interest
Income
Recognized		Average
Impaired
Balance		Interest
Income
Recognized
Three Months Ended September 30,
Commercial real estate:
Owner-occupied$2,881 $— $4,179 $— 
Non-owner occupied residential93 — 232 — 
Commercial and industrial51 — 3,073 — 
Residential mortgage:
First lien2,390 10 2,541 11 
Home equity – term5 — 10 — 
Home equity - lines of credit382 — 463 — 
Installment and other loans43 — 24 — 
$5,845 $10 $10,522 $11 
Nine Months Ended September 30,
Commercial real estate:
Owner occupied$3,126 $— $3,848 $1 
Multi-family— — 7 — 
Non-owner occupied residential100 — 252 — 
Acquisition and development:
Commercial and land development— — 246 — 
Commercial and industrial132 — 3,046 — 
Residential mortgage:
First lien2,370 25 2,575 32 
Home equity - term6 — 12 — 
Home equity - lines of credit407 — 547 — 
Installment and other loans45 — 17 — 
$6,186 $25 $10,550 $33 
Troubled Debt Restructurings
The following table presents impaired loans that are TDRs, with the recorded investment at September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing:
Residential mortgage:
First lien8 $689 8 $804 
Nonaccruing:
Residential mortgage:
First lien4 219 5 285 
Installment and other loans1 3 — — 
5 222 5 285 
13 $911 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 September 30, 2022 and December 31, 2021:
Days Past Due
Current30-5960-8990+
(still accruing)		Total
Past Due		Non-
Accrual		Total
Loans
September 30, 2022
Commercial real estate:
Owner occupied$307,819 $223 $— $— $223 $2,849 $310,891 
Non-owner occupied573,233 82 — — 82 — 573,315 
Multi-family114,561 — — — — — 114,561 
Non-owner occupied residential104,502 106 — — 106 90 104,698 
Acquisition and development:
1-4 family residential construction20,810 — — — — — 20,810 
Commercial and land development148,512 — — — — — 148,512 
Commercial and industrial376,166 11 269 — 280 45 376,491 
Municipal12,683 — — — — — 12,683 
Residential mortgage:
First lien213,733 746 219 26 991 1,904 216,628 
Home equity - term5,849 — — — — 5 5,854 
Home equity - lines of credit179,365 107 423 — 530 372 180,267 
Installment and other loans13,521 105 13 — 118 38 13,677 
Subtotal2,070,754 1,380 924 26 2,330 5,303 2,078,387 
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied2,234 — — — — — 2,234 
Non-owner occupied290 — — — — — 290 
Non-owner occupied residential458 — — 111 111 — 569 
Commercial and industrial2,083 — — — — — 2,083 
Residential mortgage:
First lien4,130 8 109 95 212 — 4,342 
Home equity - term15 — — — — — 15 
Installment and other loans7 — — — — — 7 
Subtotal9,217 8 109 206 323 — 9,540 
$2,079,971 $1,388 $1,033 $232 $2,653 $5,303 $2,087,927 
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 nine months ended September 30, 2022 and 2021:
CommercialConsumer
Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
Three Months Ended
September 30, 2022
Balance, beginning of period$12,294 $3,024 $4,471 $26 $19,815 $3,004 $223 $3,227 $237 $23,279 
Provision for loan losses551 342 296 (1)1,188 309 (5)304 8 1,500 
Charge-offs— — (87)— (87)— (24)(24)— (111)
Recoveries— 1 32 — 33 2 6 8 — 41 
Balance, end of period$12,845 $3,367 $4,712 $25 $20,949 $3,315 $200 $3,515 $245 $24,709 
September 30, 2021
Balance, beginning of period$11,315 $1,243 $3,495 $29 $16,082 $2,863 $227 $3,090 $209 $19,381 
Provision for loan losses(179)290 386 (2)495 (147)18 (129)(1)365 
Charge-offs(89)— (55)— (144)— (20)(20)— (164)
Recoveries305 8 60 — 373 5 5 10 — 383 
Balance, end of period$11,352 $1,541 $3,886 $27 $16,806 $2,721 $230 $2,951 $208 $19,965 
Nine Months Ended
September 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 losses776 1,295 980 (5)3,046 508 13 521 8 3,575 
Charge-offs— — (202)— (202)(10)(42)(52)— (254)
Recoveries32 10 120 — 162 32 14 46 — 208 
Balance, end of period$12,845 $3,367 $4,712 $25 $20,949 $3,315 $200 $3,515 $245 $24,709 
September 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 losses133 418 109 (13)647 (578)(69)(647)(10)(10)
Charge-offs(270)— (621)— (891)(92)(49)(141)— (1,032)
Recoveries338 9 456 — 803 29 24 53 — 856 
Balance, end of period$11,352 $1,541 $3,886 $27 $16,806 $2,721 $230 $2,951 $208 $19,965 
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 September 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
September 30, 2022
Loans allocated by:
Individually evaluated for impairment
$2,939 $— $45 $— $2,984 $2,970 $38 $3,008 $— $5,992 
Collectively evaluated for impairment
1,103,619 169,322 378,529 12,683 1,664,153 404,136 13,646 417,782 — 2,081,935 
$1,106,558 $169,322 $378,574 $12,683 $1,667,137 $407,106 $13,684 $420,790 $— $2,087,927 
ALL allocated by:
Individually evaluated for impairment
$— $— $— $— $— $28 $— $28 $— $28 
Collectively evaluated for impairment
12,845 3,367 4,712 25 20,949 3,287 200 3,487 245 24,681 
$12,845 $3,367 $4,712 $25 $20,949 $3,315 $200 $3,515 $245 $24,709 
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 nine months ended September 30, 2022 and 2021, respectively:
Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Accretable yield, beginning of period$2,420 $3,016 $2,661 $3,438 
Accretion of income(171)(203)(761)(878)
Reclassifications from nonaccretable difference due to improvement in expected cash flows23 11 368 128 
Other changes, net248 (12)252 124 
Accretable yield, end of period$2,520 $2,812 $2,520 $2,812