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Loans and Asset Quality (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of Loans Information

Loans HFI by category and loans HFS are summarized below:

			December 31,
(in thousands)			2023						2022
Real estate:
Commercial real estate			$	851,582					$	794,723
One-to-four family residential			599,487						543,511
Construction and development			125,238						157,364
Commercial and industrial			315,327						310,067
Tax-exempt			72,913						83,166
Consumer			28,311						27,436
Total loans HFI			$	1,992,858					$	1,916,267
Total loans HFS			$	1,306					$	518

Schedule of Allowance for Credit Losses

The following table summarizes the activity in the ACL by category for the year ended December 31, 2023:

(in thousands)			Beginning Balance						Impact of ASC 326 Adoption						Provision for Credit Losses						Charge-offs						Recoveries						Ending Balance
Real estate:
Commercial real estate			$	7,720					$	876					$	522					$	—					$	—					$	9,118
One-to-four family residential			5,682						1,231						584						(23)						10						7,484
Construction and development			1,654						(444)						108						(9)						—						1,309
Commercial and industrial			4,350						(822)						(947)						(58)						30						2,553
Tax-exempt			751						(427)						251						—						—						575
Consumer			471						(136)						217						(383)						128						297
Total allowance for credit losses			$	20,628					$	278					$	735					$	(473)					$	168					$	21,336

The following table summarizes the activity in the ALL by category for the year ended December 31, 2022:

(in thousands)			Beginning Balance						Provision for Loan Losses						Charge-offs						Recoveries						Ending Balance
Real estate:
Commercial real estate			$	6,749					$	970					$	—					$	1					$	7,720
One-to-four family residential			5,375						296						—						11						5,682
Construction and development			1,326						328						(18)						18						1,654
Commercial and industrial			4,465						(162)						(39)						86						4,350
Tax-exempt			749						2						—						—						751
Consumer			512						316						(490)						133						471
Total allowance for loan losses			$	19,176					$	1,750					$	(547)					$	249					$	20,628

The following table summarizes the activity in the ALL by category for the year ended December 31, 2021:

(in thousands)			Beginning Balance						Provision for Loan Losses						Charge-offs						Recoveries						Ending Balance
Real estate:
Commercial real estate			$	5,798					$	1,401					$	(450)					$	—					$	6,749
One-to-four family residential			5,390						(23)						(10)						18						5,375
Construction and development			1,699						(375)						—						2						1,326
Commercial and industrial			3,949						563						(74)						27						4,465
Tax-exempt			680						69						—						—						749
Consumer			435						265						(351)						163						512
Total allowance for loan losses			$	17,951					$	1,900					$	(885)					$	210					$	19,176

The balance in the ACL and the related recorded investment in loans by category as of December 31, 2023, are as follows:

(in thousands)			Individually Evaluated for Impairment						Collectively Evaluated for Impairment												Total
Allowance for credit losses:
Real estate:
Commercial real estate			$	342					$	8,776											$	9,118
One-to-four family residential			57						7,427												7,484
Construction and development			—						1,309												1,309
Commercial and industrial			226						2,327												2,553
Tax-exempt			—						575												575
Consumer			104						193												297
Total allowance for credit losses			$	729					$	20,607											$	21,336
Loans:
Real estate:
Commercial real estate			$	1,379					$	850,203											$	851,582
One-to-four family residential			751						598,736												599,487
Construction and development			—						125,238												125,238
Commercial and industrial			972						314,355												315,327
Tax-exempt			—						72,913												72,913
Consumer			140						28,171												28,311
Total loans HFI			$	3,242					$	1,989,616											$	1,992,858

The balance in the ALL and the related recorded investment in loans by category as of December 31, 2022, are as follows:

(in thousands)			Individually Evaluated for Impairment						Collectively Evaluated for Impairment												Total
Allowance for loan losses:
Real estate:
Commercial real estate			$	15					$	7,705											$	7,720
One-to-four family residential			16						5,666												5,682
Construction and development			—						1,654												1,654
Commercial and industrial			172						4,178												4,350
Tax-exempt			—						751												751
Consumer			111						360												471
Total allowance for loan losses			$	314					$	20,314											$	20,628
Loans:
Real estate:
Commercial real estate			$	4,513					$	790,210											$	794,723
One-to-four family residential			1,507						542,004												543,511
Construction and development			9						157,355												157,364
Commercial and industrial			1,402						308,665												310,067
Tax-exempt			—						83,166												83,166
Consumer			137						27,299												27,436
Total loans HFI			$	7,568					$	1,908,699											$	1,916,267

Schedule of Financing Receivable, Nonaccrual

The following table presents nonaccrual loans as of December 31, 2023:

(in thousands)			Nonaccrual with No ACL						Nonaccrual with ACL						Total Nonaccrual
Real estate:
Commercial real estate			$	—					$	714					$	714
One-to-four family residential			—						269						269
Construction and development			—						—						—
Commercial and industrial			709						135						844
Tax-exempt			—						—						—
Consumer			—						132						132
Total loans HFI			$	709					$	1,250					$	1,959

Schedule of Financing Receivable Past Due and Past Due

The following table presents the aging analysis of the past due loans and loans 90 days or more past due and still accruing interest by loan category as of December 31, 2023:

			Past Due
(in thousands)			30-59 Days						60-89 Days Past Due						90 Days or More						Current						Total Loans HFI						90 Days or More Past Due and Accruing
Real estate:
Commercial real estate			$	36					$	—					$	678					$	850,868					$	851,582					$	—
One-to-four family residential			392						251						409						598,435						599,487						260
Construction and development			—						—						265						124,973						125,238						265
Commercial and industrial			132						60						847						314,288						315,327						45
Tax-exempt			—						—						—						72,913						72,913						—
Consumer			27						16						46						28,222						28,311						4
Total loans HFI			$	587					$	327					$	2,245					$	1,989,699					$	1,992,858					$	574

The following table presents the current, past due, and nonaccrual loans by category as of December 31, 2022:

			Accruing
(in thousands)			Current						30-89 Days Past Due						90 Days or More Past Due						Nonaccrual						Total Loans
Real estate:
Commercial real estate			$	793,540					$	463					$	—					$	720					$	794,723
One-to-four family residential			542,666						602						—						243						543,511
Construction and development			157,355						—						—						9						157,364
Commercial and industrial			308,611						165						—						1,291						310,067
Tax-exempt			83,166						—						—						—						83,166
Consumer			27,291						42						2						101						27,436
Total loans HFI			$	1,912,629					$	1,272					$	2					$	2,364					$	1,916,267

Schedule of Impaired Financing Receivable

Information pertaining to impaired loans as of and for the year ended December 31, 2022, is as follows:

(in thousands)			Unpaid Principal Balance						Recorded Investment						Related Allowance						Average Recorded Investment						Interest Income Recognized
With no related allowance recorded:
Real estate:
Commercial real estate			$	3,804					$	3,796					$	—					$	3,194					$	135
One-to-four family residential			1,458						1,387						—						797						68
Construction and development			9						9						—						104						—
Commercial and industrial			51						51						—						58						4
Tax-exempt			—						—						—						—						—
Consumer			26						26						—						9						1
Total with no related allowance			5,348						5,269						—						4,162						208
With allowance recorded:
Real estate:
Commercial real estate			717						717						15						1,264						33
One-to-four family residential			120						120						16						48						6
Construction and development			—						—						—						—						—
Commercial and industrial			1,360						1,351						172						623						4
Tax-exempt			—						—						—						—						—
Consumer			113						111						111						122						1
Total with related allowance			2,310						2,299						314						2,057						44
Total impaired loans			$	7,658					$	7,568					$	314					$	6,219					$	252

Information pertaining to impaired loans as of and for the year ended December 31, 2021, is as follows:

(in thousands)			Unpaid Principal Balance						Recorded Investment						Related Allowance						Average Recorded Investment						Interest Income Recognized
With no related allowance recorded:
Real estate:
Commercial real estate			$	1,599					$	1,595					$	—					$	1,969					$	78
One-to-four family residential			483						434						—						539						19
Construction and development			501						501						—						400						32
Commercial and industrial			—						—						—						355						—
Tax-exempt			—						—						—						—						—
Consumer			8						8						—						4						1
Total with no related allowance			2,591						2,538						—						3,267						130
With allowance recorded:
Real estate:
Commercial real estate			3,416						3,416						68						2,111						64
One-to-four family residential			—						—						—						145						—
Construction and development			—						—						—						—						—
Commercial and industrial			85						77						40						1,570						5
Tax-exempt			—						—						—						—						—
Consumer			118						118						118						112						5
Total with related allowance			3,619						3,611						226						3,938						74
Total impaired loans			$	6,210					$	6,149					$	226					$	7,205					$	204

Schedule of Loan Modification and TDRs

As of December 31, 2023, the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty during the year ended December 31, 2023 is as follows:

									December 31, 2023
(dollars in thousands)																					Term Extension						Total Class of Loans Receivable						Financial Effect
Real estate:
Commercial real estate																					$	—					—		%
One-to-four family residential																					300						0.1		%				Amortization period was extended by a weighted-average of 2.34 years.
Construction and development																					—						—		%
Commercial and industrial																					—						—		%
Tax-exempt																					—						—		%
Consumer																					—						—		%
Total																					$	300					0.1		%

A summary of current, past due, and nonaccrual TDR loans as of December 31, 2022, is as follows:

(dollars in thousands)			Current						30-89 Days Past Due						90 Days or More Past Due						Nonaccrual						Total TDRs
Real estate:
Commercial real estate			$	3,197					$	—					$	—					$	42					$	3,239
One-to-four family residential			797						151						—						22						970
Construction and development			—						—						—						—						—
Commercial and industrial			—						—						—						—						—
SBA PPP, net of deferred income			—						—						—						—						—
Tax-exempt			—						—						—						—						—
Consumer			10						—						—						101						111
Total			$	4,004					$	151					$	—					$	165					$	4,320
Number of TDR loans			11						2						—						3						16

A summary of loans modified as TDRs that occurred during the years ended December 31, 2022 and 2021, is as follows:

			December 31, 2022																		December 31, 2021
									Recorded Investment																		Recorded Investment
(dollars in thousands)			Loan Count						Pre Modification						Post Modification						Loan Count						Pre Modification						Post Modification
Real estate:
Commercial real estate			1						$	50					$	50					1						$	2,174					$	2,184
One-to-four family residential			5						696						699						—						—						—
Construction and development			—						—						—						—						—						—
Commercial and industrial			—						—						—						—						—						—
Tax-exempt			—						—						—						—						—						—
Consumer			1						104						104						1						20						27
Total			7						$	850					$	853					2						$	2,194					$	2,211

Schedule of Financing Receivable by Credit Risk

The following table summarizes loans by risk rating and year of origination as of December 31, 2023:

			Year of Origination
(in thousands)			2023						2022						2021						2020						2019						Prior Years						Revolving Lines						Total
Real estate:
Commercial real estate
Pass			$	124,134					$	256,707					$	239,364					$	76,754					$	63,475					$	61,957					$	18,467					$	840,858
Special mention			73						—						3,186						—						1,031						4,082						—						8,372
Substandard			184						779						675						—						—						714						—						2,352
Total			$	124,391					$	257,486					$	243,225					$	76,754					$	64,506					$	66,753					$	18,467					$	851,582
One-to-four family residential
Pass			$	122,004					$	134,583					$	129,388					$	90,190					$	31,110					$	74,077					$	16,472					$	597,824
Special mention			—						—						—						—						—						261						—						261
Substandard			—						79						—						37						385						827						74						1,402
Total			$	122,004					$	134,662					$	129,388					$	90,227					$	31,495					$	75,165					$	16,546					$	599,487
Construction and development
Pass			$	54,189					$	55,515					$	10,333					$	1,742					$	2,158					$	1,015					$	286					$	125,238
Special mention			—						—						—						—						—						—						—						—
Substandard			—						—						—						—						—						—						—						—
Total			$	54,189					$	55,515					$	10,333					$	1,742					$	2,158					$	1,015					$	286					$	125,238
Commercial and industrial
Pass			$	73,653					$	49,637					$	51,012					$	13,863					$	7,409					$	813					$	107,171					$	303,558
Special mention			1,208						937						4,659						—						310						509						3,173						10,796
Substandard			4						—						59						5						54						51						800						973
Total			$	74,865					$	50,574					$	55,730					$	13,868					$	7,773					$	1,373					$	111,144					$	315,327
Tax-exempt
Pass			$	959					$	15,679					$	8,174					$	13,919					$	4,250					$	29,932					$	—					$	72,913
Special mention			—						—						—						—						—						—						—						—
Substandard			—						—						—						—						—						—						—						—
Total			$	959					$	15,679					$	8,174					$	13,919					$	4,250					$	29,932					$	—					$	72,913
Consumer
Pass			$	16,947					$	6,385					$	2,325					$	858					$	363					$	133					$	1,173					$	28,184
Special mention			—						—						—						—						—						—						—						—
Substandard			—						29						—						—						—						90						8						127
Total			$	16,947					$	6,414					$	2,325					$	858					$	363					$	223					$	1,181					$	28,311
Total loans HFI			$	393,355					$	520,330					$	449,175					$	197,368					$	110,545					$	174,461					$	147,624					$	1,992,858
Current period gross charge-offs			$	12					$	20					$	1					$	—					$	10					$	25					$	405					$	473

The following table summarizes loans by risk rating as of December 31, 2022:

(in thousands)			Pass						Special Mention						Substandard						Doubtful						Loss						Total
Real estate:
Commercial real estate			$	786,394					$	5,759					$	2,570					$	—					$	—					$	794,723
One-to-four family residential			542,112						62						1,337						—						—						543,511
Construction and development			157,355						—						9						—						—						157,364
Commercial and industrial			297,166						11,428						1,473						—						—						310,067
Tax-exempt			83,166						—						—						—						—						83,166
Consumer			27,298						—						138						—						—						27,436
Total loans HFI			$	1,893,491					$	17,249					$	5,527					$	—					$	—					$	1,916,267

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-URI https://asc.fasb.org//1943274/2147481962/310-10-50-42

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 33
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-33

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-34

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