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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
3 Months Ended
Mar. 31, 2024
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 LHFS, at March 31, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
Commercial real estate:
Owner occupied$364,280 $373,757 
Non-owner occupied707,871 694,638 
Multi-family147,773 150,675 
Non-owner occupied residential91,858 95,040 
Acquisition and development:
1-4 family residential construction22,277 24,516 
Commercial and land development118,010 115,249 
Commercial and industrial365,524 367,085 
Municipal10,925 9,812 
Residential mortgage:
First lien270,748 266,239 
Home equity - term4,966 5,078 
Home equity - lines of credit189,966 186,450 
Installment and other loans8,875 9,774 
Total loans $2,303,073 $2,298,313 
Amortized Cost of the Loan Portfolio, by Year of Origination, Loan Class, and Credit Quality
The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2024 and December 31, 2023. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan and payment activity, which residential mortgage and installment and other consumer loans are presented below based on payment performance: performing or nonperforming.
Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2024
20242023202220212020PriorRevolving Loans Amortized BasisRevolving Loans Converted to TermTotal
Commercial Real Estate:
Owner-occupied:
Risk rating
Pass$7,004 $50,993 $100,503 $70,796 $20,786 $80,037 $3,867 $— $333,986 
Special mention— — — 3,741 1,165 1,287 — — 6,193 
Substandard - Non-IEL— 708 10,092 481 6,034 2,526 335 — 20,176 
Substandard - IEL— — — — — 3,925 — — 3,925 
Total owner-occupied loans$7,004 $51,701 $110,595 $75,018 $27,985 $87,775 $4,202 $— $364,280 
Current period gross charge offs - owner-occupied$— $— $— $— $— $— $— $— $— 
Non-owner occupied:
Risk rating
Pass$17,334 $82,531 $107,154 $231,786 $82,923 $179,199 $534 $— $701,461 
Special mention— — — — 520 2,079 — — 2,599 
Substandard - Non-IEL— — — — — 2,718 — 865 3,583 
Substandard - IEL— — — — — 228 — — 228 
Total non-owner occupied loans$17,334 $82,531 $107,154 $231,786 $83,443 $184,224 $534 $865 $707,871 
Current period gross charge offs - non-owner occupied$— $— $— $— $— $— $— $— $— 
Multi-family:
Risk rating
Pass$599 $2,683 $62,971 $28,564 $12,602 $38,577 $126 $— $146,122 
Special mention— — — — — 418 — — 418 
Substandard - Non-IEL— — — — — — — — — 
Substandard - IEL— — — — — 1,233 — — 1,233 
Total multi-family loans$599 $2,683 $62,971 $28,564 $12,602 $40,228 $126 $— $147,773 
Current period gross charge offs - multi-family$— $— $— $— $— $— $— $— $— 
Non-owner occupied residential:
Risk rating
Pass$887 $10,189 $20,822 $16,626 $7,689 $32,400 $146 $— $88,759 
Special mention— — — — — 698 — — 698 
Substandard - Non-IEL— — — — — 365 20 — 385 
Substandard - IEL— — 185 1,125 704 — — 2,016 
Total non-owner occupied residential loans$887 $10,191 $20,822 $16,811 $8,814 $34,167 $166 $— $91,858 
Current period gross charge offs - non-owner occupied residential$— $— $— $— $— $— $— $— $— 
continued
Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2024
20242023202220212020PriorRevolving Loans Amortized BasisRevolving Loans Converted to TermTotal
Acquisition and development:
1-4 family residential construction:
Risk rating
Pass$2,906 $17,880 $1,270 $— $— $— $— $— $22,056 
Special mention— 221 — — — — — — 221 
Substandard - Non-IEL— — — — — — — — — 
Substandard - IEL— — — — — — — — — 
Total 1-4 family residential construction loans$2,906 $18,101 $1,270 $— $— $— $— $— $22,277 
Current period gross charge offs - 1-4 family residential construction$— $— $— $— $— $— $— $— $— 
Commercial and land development:
Risk rating
Pass$2,504 $37,248 $43,572 $6,111 $9,869 $1,225 $6,689 $8,202 $115,420 
Special mention— — — — 854 430 — — 1,284 
Substandard - Non-IEL— — — — — — — — — 
Substandard - IEL— — — — — 1,306 — — 1,306 
Total commercial and land development loans$2,504 $37,248 $43,572 $6,111 $10,723 $2,961 $6,689 $8,202 $118,010 
Current period gross charge offs - commercial and land development$— $— $— $— $— $— $— $— $— 
Commercial and Industrial:
Risk rating
Pass$13,291 $64,946 $65,981 $62,595 $23,083 $29,681 $88,673 $1,250 $349,500 
Special mention— — 1,387 35 730 2,407 — 4,568 
Substandard - Non-IEL— 14 — 6,112 — 225 5,104 — 11,455 
Substandard - IEL— — — — — — — 
Total commercial and industrial loans$13,291 $64,960 $67,369 $68,742 $23,092 $30,636 $96,184 $1,250 $365,524 
Current period gross charge offs - commercial and industrial$— $— $46 $— $— $— $— $— $46 
Municipal:
Risk rating
Pass$1,580 $— $— $3,160 $— $— $6,185 $— $10,925 
Total municipal loans$1,580 $— $— $3,160 $— $— $6,185 $— $10,925 
Current period gross charge offs - municipal$— $— $— $— $— $— $— $— $— 
Residential mortgage:
First lien:
Payment performance
Performing$9,076 $45,888 $68,632 $34,357 $7,925 $101,445 $— $634 $267,957 
Nonperforming— — — — — 2,791 — — 2,791 
Total first lien loans$9,076 $45,888 $68,632 $34,357 $7,925 $104,236 $— $634 $270,748 
Current period gross charge offs - first lien$— $— $— $— $— $— $— $— $— 
continued
Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2024
20242023202220212020PriorRevolving Loans Amortized BasisRevolving Loans Converted to TermTotal
Home equity - term:
Payment performance
Performing$331 $501 $692 $74 $408 $2,958 $— $— $4,964 
Nonperforming— — — — — — — 
Total home equity - term loans$331 $501 $692 $74 $408 $2,960 $— $— $4,966 
Current period gross charge offs - home equity - term$— $— $— $— $— $— $— $— $— 
Home equity - lines of credit:
Payment performance
Performing$— $— $— $— $— $— $111,751 $76,689 $188,440 
Nonperforming— — — — — — 1,308 218 1,526 
Total residential real estate - home equity - lines of credit loans$— $— $— $— $— $— $113,059 $76,907 $189,966 
Current period gross charge offs - home equity - lines of credit$— $— $— $— $— $— $— $— $— 
Installment and other loans:
Payment performance
Performing$366 $626 $357 $304 $96 $1,178 $5,920 $— $8,847 
Nonperforming— — — — 21 — 28 
Total Installment and other loans$366 $629 $357 $304 $96 $1,199 $5,924 $— $8,875 
Current period gross charge offs - installment and other$24 $12 $— $— $— $17 $— $— $53 
Term Loans Amortized Cost Basis by Origination Year
As of December 31, 202320232022202120202019PriorRevolving Loans Amortized BasisRevolving Loans Converted to TermTotal
Commercial Real Estate:
Owner-occupied:
Risk rating
Pass$50,829 $103,192 $69,888 $21,232 $21,251 $62,634 $4,941 $— $333,967 
Special mention— — 2,517 1,176 — 1,314 — — 5,007 
Substandard - Non-IEL— 9,923 — 6,075 — 2,687 312 — 18,997 
Substandard - IEL— — — 13,366 — 2,420 — — 15,786 
Total owner-occupied loans$50,829 $113,115 $72,405 $41,849 $21,251 $69,055 $5,253 $— $373,757 
Current period gross charge offs - owner-occupied$— $— $— $— $— $— $— $— $— 
Non-owner occupied:
Risk rating
Pass$82,879 $102,212 $235,031 $83,652 $63,176 $120,696 $509 $— $688,155 
Special mention— — — 524 — 2,112 — — 2,636 
Substandard - Non-IEL— — — — — 2,739 — 868 3,607 
Substandard - IEL— — — — — 240 — — 240 
Total non-owner occupied loans$82,879 $102,212 $235,031 $84,176 $63,176 $125,787 $509 $868 $694,638 
Current period gross charge offs - non-owner occupied$— $— $— $— $— $— $— $— $— 
continued
Term Loans Amortized Cost Basis by Origination Year
As of December 31, 202320232022202120202019PriorRevolving Loans Amortized BasisRevolving Loans Converted to TermTotal
Multi-family:
Risk rating
Pass$2,701 $61,805 $28,541 $12,694 $7,437 $33,895 $117 $— $147,190 
Special mention— — — — 244 2,008 — — 2,252 
Substandard - Non-IEL— — — — — — — — — 
Substandard - IEL— — — — — 1,233 — — 1,233 
Total multi-family loans$2,701 $61,805 $28,541 $12,694 $7,681 $37,136 $117 $— $150,675 
Current period gross charge offs - multi-family$— $— $— $— $— $— $— $— $— 
Non-owner occupied residential:
Risk rating
Pass$10,075 $20,473 $16,947 $7,974 $6,444 $28,319 $1,130 $— $91,362 
Special mention— — — — — 731 — — 731 
Substandard - Non-IEL— — — — — 375 — — 375 
Substandard - IEL— 192 1,461 — 917 — — 2,572 
Total non-owner occupied residential loans$10,077 $20,473 $17,139 $9,435 $6,444 $30,342 $1,130 $— $95,040 
Current period gross charge offs - non-owner occupied residential$— $— $— $— $— $12 $— $— $12 
Acquisition and development:
1-4 family residential construction:
Risk rating
Pass$18,820 $5,400 $— $— $— $— $— $— $24,220 
Special mention222 — 74 — — — — — 296 
Substandard - Non-IEL— — — — — — — — — 
Substandard - IEL— — — — — — — — — 
Total 1-4 family residential construction loans$19,042 $5,400 $74 $— $— $— $— $— $24,516 
Current period gross charge offs - 1-4 family residential construction$— $— $— $— $— $— $— $— $— 
Commercial and land development:
Risk rating
Pass$28,829 $48,453 $9,847 $9,927 $110 $1,774 $6,574 $6,936 $112,450 
Special mention— — — 1,001 — 437 — — 1,438 
Substandard - Non-IEL— — — — — — — — — 
Substandard - IEL— — — — — 1,361 — — 1,361 
Total commercial and land development loans$28,829 $48,453 $9,847 $10,928 $110 $3,572 $6,574 $6,936 $115,249 
Current period gross charge offs - commercial and land development$— $— $— $— $— $— $— $— $— 
continued
Term Loans Amortized Cost Basis by Origination Year
As of December 31, 202320232022202120202019PriorRevolving Loans Amortized BasisRevolving Loans Converted to TermTotal
Commercial and Industrial:
Risk rating
Pass$67,735 $69,670 $67,117 $24,580 $10,753 $20,775 $86,475 $1,522 $348,627 
Special mention— 4,251 4,364 11 552 356 2,258 — 11,792 
Substandard - Non-IEL— — 4,682 — 225 1,082 — 5,994 
Substandard - IEL— 69 — — 455 141 — 672 
Total commercial and industrial loans$67,735 $73,990 $76,163 $24,598 $11,310 $21,811 $89,956 $1,522 $367,085 
Current period gross charge offs - commercial and industrial$— $161 $106 $— $— $$473 $— $748 
Municipal:
Risk rating
Pass$— $— $3,403 $— $— $6,409 $— $— $9,812 
Total municipal loans$— $— $3,403 $— $— $6,409 $— $— $9,812 
Current period gross charge offs - municipal$— $— $— $— $— $— $— $— $— 
Residential mortgage:
First lien:
Payment performance
Performing$43,641 $71,311 $34,704 $8,056 $7,465 $97,943 $— $638 $263,758 
Nonperforming— — — — 120 2,361 — — 2,481 
Total first lien loans$43,641 $71,311 $34,704 $8,056 $7,585 $100,304 $— $638 $266,239 
Current period gross charge offs - first lien$— $— $— $— $— $58 $— $— $58 
Home equity - term:
Payment performance
Performing$607 $732 $90 $426 $115 $3,105 $— $— $5,075 
Nonperforming— — — — — — — 
Total home equity - term loans$607 $732 $90 $426 $115 $3,108 $— $— $5,078 
Current period gross charge offs - home equity - term$— $— $— $— $— $— $— $— $— 
Home equity - lines of credit:
Payment performance
Performing$— $— $— $— $— $— $107,967 $77,171 $185,138 
Nonperforming— — — — — — 1,296 16 1,312 
Total residential real estate - home equity - lines of credit loans$— $— $— $— $— $— $109,263 $77,187 $186,450 
Current period gross charge offs - home equity - lines of credit$— $— $— $— $— $— $40 $— $40 
Installment and other loans:
Payment performance
Performing$758 $413 $332 $106 $670 $947 $6,500 $— $9,726 
Nonperforming— — — 33 12 — — 48 
Total Installment and other loans$761 $413 $332 $106 $703 $959 $6,500 $— $9,774 
Current period gross charge offs - installment and other$181 $24 $— $— $$10 $28 $— $247 
Schedule of Amortized Cost of Nonaccrual Loans by Class, With and Without Loan Reserves
The following table presents the amortized cost basis of nonaccrual loans, according to loan class, with and without reserves on individually evaluated loans as of March 31, 2024 and December 31, 2023. The Company did not recognize interest income on nonaccrual loans during the three months ended March 31, 2024 and 2023.
March 31, 2024December 31, 2023
Nonaccrual loans with a related ACLNonaccrual loans with no related ACLTotal nonaccrual loansLoans Past Due 90+ AccruingNonaccrual loans with a related ACLNonaccrual loans with no related ACLTotal nonaccrual loansLoans Past Due 90+ Accruing
Commercial real estate:
Owner-occupied$ $3,925 $3,925 $ $— $15,786 $15,786 $— 
Non-owner occupied 228 228  — 240 240 — 
Multi-family 1,233 1,233  — 1,233 1,233 — 
Non-owner occupied residential 2,016 2,016  — 2,572 2,572 — 
Acquisition and development:
Commercial and land development 1,306 1,306  — 1,361 1,361 — 
Commercial and industrial 1 1  68 604 672 — 
Residential mortgage:
First lien 2,621 2,621 24 — 2,309 2,309 66 
Home equity – term 2 2  — — 
Home equity – lines of credit 1,526 1,526 75 — 1,312 1,312 — 
Installment and other loans7 21 28  36 39 — 
Total$7 $12,879 $12,886 $99 $71 $25,456 $25,527 $66 
Schedule of Amortized Cost Basis of Collateral-Dependent Loans
The following table presents the amortized cost basis of collateral-dependent loans by class as of March 31, 2024 and December 31, 2023:
Type of Collateral
March 31, 2024Business AssetsCommercial Real EstateEquipmentLandResidential Real EstateOtherTotal
Commercial real estate:
Owner occupied$ $3,925 $ $ $ $ $3,925 
Non-owner occupied 228     228 
Multi-family 1,233     1,233 
Non-owner occupied residential 2,016     2,016 
Acquisition and development:
Commercial and land development   1,306   1,306 
Commercial and industrial2  1    3 
Residential mortgage:
First lien    2,545  2,545 
Home equity - term    2  2 
Home equity - lines of credit    1,526  1,526 
Installment and other loans  3    3 
Total$2 $7,402 $4 $1,306 $4,073 $ $12,787 
December 31, 2023
Commercial real estate:
Owner occupied$— $15,786 $— $— $— $— $15,786 
Non-owner occupied— 240 — — — — 240 
Multi-family— 1,233 — — — — 1,233 
Non-owner occupied residential— 2,572 — — — — 2,572 
Acquisition and development:
Commercial and land development— — — 1,361 — — 1,361 
Commercial and industrial76 594 — — — 672 
Residential mortgage:
First lien— — — — 2,231 — 2,231 
Home equity - term— — — — — 
Home equity - lines of credit— — — — 1,312 — 1,312 
Installment and other loans— — 18 — — — 18 
Total$$19,907 $612 $1,361 $3,546 $— $25,428 
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans The following table presents the classes of the loan portfolio summarized by aging categories at March 31, 2024 and December 31, 2023:
30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal
Past Due
Loans Not Past DueTotal
Loans
March 31, 2024
Commercial real estate:
Owner occupied$3,178 $81 $103 $3,362 $360,918 $364,280 
Non-owner occupied151   151 707,720 707,871 
Multi-family 1,233  1,233 146,540 147,773 
Non-owner occupied residential52 946 863 1,861 89,997 91,858 
Acquisition and development:
1-4 family residential construction    22,277 22,277 
Commercial and land development23   23 117,987 118,010 
Commercial and industrial127 41 31 199 365,325 365,524 
Municipal    10,925 10,925 
Residential mortgage:
First lien4,690 464 661 5,815 264,933 270,748 
Home equity - term2   2 4,964 4,966 
Home equity - lines of credit1,374 424 888 2,686 187,280 189,966 
Installment and other loans47 31 4 82 8,793 8,875 
$9,644 $3,220 $2,550 $15,414 $2,287,659 $2,303,073 
30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal
Past Due
Loans Not Past DueTotal
Loans
December 31, 2023
Commercial real estate:
Owner occupied$13,852 $— $117 $13,969 $359,788 $373,757 
Non-owner occupied152 — — 152 694,486 694,638 
Multi-family— — — — 150,675 150,675 
Non-owner occupied residential— — 192 192 94,848 95,040 
Acquisition and development:
1-4 family residential construction— — — — 24,516 24,516 
Commercial and land development16 — — 16 115,233 115,249 
Commercial and industrial27 69 625 721 366,364 367,085 
Municipal— — — — 9,812 9,812 
Residential mortgage:
First lien5,433 1,058 721 7,212 259,027 266,239 
Home equity - term20 — 22 5,056 5,078 
Home equity - lines of credit1,801 100 839 2,740 183,710 186,450 
Installment and other loans84 28 19 131 9,643 9,774 
$21,385 $1,257 $2,513 $25,155 $2,273,158 $2,298,313 
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 ACL for the three months ended March 31, 2024 and :
CommercialConsumer
Commercial
Real Estate
Acquisition
and
Development
Commercial
and
Industrial
MunicipalTotalResidential
Mortgage
Installment
and Other
TotalUnallocatedTotal
Three Months Ended
March 31, 2024
Balance, beginning of period$17,873 $2,241 $5,806 $157 $26,077 $2,424 $201 $2,625 $ $28,702 
Provision for credit losses78 (9)(461)7 (385)763 43 806  421 
Charge-offs  (46) (46) (53)(53) (99)
Recoveries24 1 90  115 6 20 26  141 
Balance, end of period$17,975 $2,233 $5,389 $164 $25,761 $3,193 $211 $3,404 $ $29,165 
March 31, 2023
Balance, beginning of period$13,558 $3,214 $4,505 $24 $21,301 $3,444 $188 $3,632 $245 $25,178 
Impact of adopting ASC 3262,857 (214)928 169 3,740 (1,121)49 (1,072)(245)2,423 
Provision for loan losses262 215 412 (16)873 (140)(4)(144)— 729 
Charge-offs— — (86)— (86)— (56)(56)— (142)
Recoveries20 28 — 50 95 31 126 — 176 
Balance, end of period$16,697 $3,217 $5,787 $177 $25,878 $2,278 $208 $2,486 $— $28,364