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LOANS (Tables)
9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of accounts, notes, loans and financing receivable

    

September 30, 

    

December 31, 

2022

2021

Commercial and industrial (1)

$

219,514

$

230,177

Construction and land

 

12,231

 

13,371

Commercial real estate

 

1,670,283

 

1,299,684

Residential

 

88,902

 

118,423

Consumer

 

4,294

 

5,138

Total loans

 

1,995,224

 

1,666,793

Net deferred loan fees

 

(258)

 

(1,903)

Allowance for loan losses

 

(18,050)

 

(17,700)

Net loans

$

1,976,916

$

1,647,190

(1)During the third quarter of 2022, the Bank continued its participation in the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), by processing applications for PPP loan forgiveness. Total loans include $35.4 million and $69.6 million of PPP loans as of September 30, 2022 and December 31, 2021, respectively.
Schedule of impaired financing receivables

The Company’s total impaired loans, including nonaccrual loans TDR loans, and accreting purchase credit impaired (“PCI”) loans that have experienced post-acquisition declines in cash flows expected to be collected are summarized as follows:

    

Commercial

    

Construction

    

Commercial

    

    

    

and industrial

and land

real estate

Residential

Consumer

Total

September 30, 2022

  

 

  

 

  

 

  

 

  

 

  

Recorded investment in impaired loans:

 

  

 

  

 

  

 

  

 

  

 

  

With no specific allowance recorded

$

1,780

$

$

12,123

$

2,001

$

$

15,904

With a specific allowance recorded

 

840

 

 

259

 

125

 

 

1,224

Total recorded investment in impaired loans

$

2,620

$

$

12,382

$

2,126

$

$

17,128

Specific allowance on impaired loans

$

725

$

$

259

$

14

$

$

998

December 31, 2021

 

  

 

  

 

  

 

  

 

  

 

  

Recorded investment in impaired loans:

 

  

 

  

 

  

 

  

 

  

 

  

With no specific allowance recorded

$

112

$

36

$

5,015

$

1,441

$

$

6,604

With a specific allowance recorded

 

681

 

 

262

 

146

 

 

1,089

Total recorded investment in impaired loans

$

793

$

36

$

5,277

$

1,587

$

$

7,693

Specific allowance on impaired loans

$

681

$

$

224

$

25

$

$

930

Three months ended September 30, 2022

 

  

 

  

 

  

 

  

 

  

 

  

Average recorded investment in impaired loans

$

2,899

$

$

8,490

$

1,998

$

$

13,387

Interest recognized

 

17

 

 

17

 

18

 

 

52

Nine months ended September 30, 2022

 

  

 

  

 

  

 

  

 

  

 

  

Average recorded investment in impaired loans

$

3,068

$

406

$

6,992

$

1,448

$

$

11,914

Interest recognized

 

18

 

5

 

34

 

27

 

 

84

Three months ended September 30, 2021

 

  

 

  

 

  

 

  

 

  

 

  

Average recorded investment in impaired loans

$

683

$

36

$

5,338

$

2,363

$

$

8,420

Interest recognized

 

17

 

15

 

27

 

 

59

Nine months ended September 30, 2021

 

  

 

  

 

  

 

  

 

  

 

  

Average recorded investment in impaired loans

$

796

$

36

$

5,711

$

2,609

$

$

9,152

Interest recognized

 

53

 

92

 

43

 

 

188

Schedule of debtor troubled debt restructuring, current period

A summary of TDR loans by type of concession and type of loan, as of the periods indicated:

    

Number of

    

Rate

    

Term

    

Rate & term

    

loans

modification

modification

modification

Total

September 30, 2022

Commercial and industrial

 

3

$

$

1,699

$

$

1,699

Construction and land

 

 

 

 

 

Commercial real estate

 

6

 

 

5,345

 

 

5,345

Residential

 

2

 

974

 

 

974

Consumer

 

 

 

 

 

Total

 

11

$

$

8,018

$

$

8,018

    

Number of

    

Rate

    

Term

    

Rate & term

    

loans

modification

modification

modification

Total

September 30, 2021

Commercial and industrial

 

2

$

$

26

$

$

26

Construction and land

 

 

 

 

 

Commercial real estate

 

4

 

 

2,267

 

 

2,267

Residential

 

1

 

 

146

 

 

146

Consumer

 

 

 

 

 

Total

 

7

$

$

2,439

$

$

2,439

Schedule of financing receivable credit quality indicators

The following tables present the internally assigned risk grade by class of loans at the dates indicated:

    

    

Special

    

    

    

Pass

Mention

Substandard

Doubtful

Total

September 30, 2022

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

208,422

$

4,846

$

6,246

$

$

219,514

Construction and land

 

12,165

 

66

 

 

 

12,231

Commercial real estate

 

1,602,109

 

52,693

 

15,481

 

 

1,670,283

Residential

 

86,490

 

258

 

2,154

 

 

88,902

Consumer

 

4,273

 

 

21

 

 

4,294

Total

$

1,913,459

$

57,863

$

23,902

$

$

1,995,224

    

    

Special

    

    

    

Pass

Mention

Substandard

Doubtful

Total

December 31, 2021

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

216,611

$

9,178

$

4,388

$

$

230,177

Construction and land

 

13,264

 

71

 

36

 

 

13,371

Commercial real estate

 

1,264,269

 

28,438

 

6,977

 

 

1,299,684

Residential

 

115,534

 

1,250

 

1,639

 

 

118,423

Consumer

 

5,116

 

 

22

 

 

5,138

Total

$

1,614,794

$

38,937

$

13,062

$

$

1,666,793

Schedule of past due financing receivables

The following tables provide an aging of the Company’s loans receivable as of the dates indicated:

    

    

    

    

    

    

    

    

Recorded

    

    

    

90 Days

    

    

    

    

    

investment >

30–59 Days

60–89 Days

or more

Total

Total loans

90 days and

past due

past due

past due

past due

Current

PCI loans

receivable

accruing

September 30, 2022

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

759

$

3,717

$

5,862

$

10,338

$

205,013

$

4,163

$

219,514

$

3,315

Construction and land

 

391

 

 

 

391

 

7,780

 

4,060

 

12,231

 

Commercial real estate

 

293

 

 

6,071

 

6,364

 

1,643,105

 

20,814

 

1,670,283

 

Residential

 

188

 

758

 

946

 

86,849

 

1,107

 

88,902

 

Consumer

 

 

 

 

 

4,294

 

 

4,294

 

Total

$

1,631

$

3,717

$

12,691

$

18,039

$

1,947,041

$

30,144

$

1,995,224

$

3,315

    

    

    

    

    

    

    

    

Recorded

    

    

    

90 Days

    

    

    

    

    

investment >

30–59 Days

60–89 Days

or more

Total

Total loans

90 days and

past due

past due

past due

past due

Current

PCI loans

receivable

accruing

December 31, 2021

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

275

$

10

$

606

$

891

$

228,980

$

306

$

230,177

$

Construction and land

 

 

338

 

36

 

374

 

12,997

 

 

13,371

 

Commercial real estate

 

196

 

410

 

2,621

 

3,227

 

1,286,311

 

10,146

 

1,299,684

 

Residential

 

1,442

 

21

 

1,031

 

2,494

 

114,162

 

1,767

 

118,423

 

Consumer

 

3

 

 

 

3

 

5,135

 

 

5,138

 

Total

$

1,916

$

779

$

4,294

$

6,989

$

1,647,585

$

12,219

$

1,666,793

$

Schedule of purchase credit impaired loans

The unpaid principal balance and carrying value of the Company’s PCI loans at the dates indicated are as follows:

September 30, 2022

December 31, 2021

    

Unpaid

    

    

Unpaid

    

principal

Carrying

principal

Carrying

balance

value

balance

value

Commercial and industrial

$

5,145

$

4,163

$

546

$

306

Construction and land

 

4,309

 

4,060

 

 

Commercial real estate

 

22,472

20,814

 

11,519

 

10,146

Residential

 

1,265

 

1,107

 

2,202

 

1,767

Total

$

33,191

$

30,144

$

14,267

$

12,219

Schedule of changes in the accretable yield of PCI loans

Three months ended

Nine months ended

    

September 30, 

    

September 30, 

2022

2021

2022

2021

Balance at beginning of period

$

1,572

$

316

$

508

$

383

Additions

 

 

 

1,277

 

Removals

 

(71)

 

(4)

 

(133)

 

(153)

Accretion

 

(133)

 

(139)

 

(284)

 

(57)

Balance at end of period

$

1,368

$

173

$

1,368

$

173