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Allowance for Loan Losses | 3 Months Ended
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Mar. 31, 2022
Allowance for Loan Losses |
Allowance for Loan Losses | Note 4— Allowance for Loan Losses The following tables present the activity in the allowance for loan losses for the three months ended March 31, 2022 and March 31, 2021, as well as the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology as of March 31, 2022 and March 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2022
​ | ​ | Real Estate | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Construction & | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Land | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dollars in thousands | ​ | Commercial | ​ | Development | ​ | Residential | ​ | Commercial | ​ | Consumer | ​ | Unallocated | ​ | Total
Allowance for loan losses: |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Beginning Balance, December 31, 2021 | ​ | $ | 13,091 | ​ | $ | 2,824 | ​ | $ | 2,769 | ​ | $ | 711 | ​ | $ | 5 | ​ | $ | 632 | ​ | $ | 20,032
Charge-offs |  | ​ | (1) |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — | ​ | ​ | (1)
Recoveries |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — | ​ |  | —
Provision |  | ​ | (694) |  | ​ | 922 |  | ​ | (12) |  | ​ | (11) |  | ​ | — |  | ​ | (205) | ​ |  | —
Ending Balance, March 31, 2022 | ​ | $ | 12,396 | ​ | $ | 3,746 | ​ | $ | 2,757 | ​ | $ | 700 | ​ | $ | 5 | ​ | $ | 427 | ​ | $ | 20,031
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Individually evaluated for impairment | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Collectively evaluated for impairment | ​ | $ | 12,396 | ​ | $ | 3,746 | ​ | $ | 2,757 | ​ | $ | 700 | ​ | $ | 5 | ​ | $ | 427 | ​ | $ | 20,031
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Ending Balance, March 31, 2022 | ​ | $ | 992,126 | ​ | $ | 219,160 | ​ | $ | 356,331 | ​ | $ | 60,350 | ​ | $ | 513 | ​ | $ | — | ​ | $ | 1,628,480
Individually evaluated for impairment | ​ | $ | — | ​ | $ | — | ​ | $ | 542 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 542
Collectively evaluated for impairment | ​ | $ | 992,126 | ​ | $ | 219,160 | ​ | $ | 355,789 | ​ | $ | 60,350 | ​ | $ | 513 | ​ | $ | — | ​ | $ | 1,627,938
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2021
​ | ​ | Real Estate | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Construction & | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Land | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dollars in thousands | ​ | Commercial | ​ | Development | ​ | Residential | ​ | Commercial | ​ | Consumer | ​ | Unallocated | ​ | Total
Allowance for loan losses: |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Beginning Balance, December 31, 2020 | ​ | $ | 10,602 | ​ | $ | 2,617 | ​ | $ | 2,430 | ​ | $ | 1,007 | ​ | $ | 11 | ​ | $ | 350 | ​ | $ | 17,017
Charge-offs |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | (1) |  | ​ | — |  | ​ | — | ​ | ​ | (1)
Recoveries |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — | ​ |  | —
Provision |  | ​ | 1,643 |  | ​ | 780 |  | ​ | (20) |  | ​ | (271) |  | ​ | (2) |  | ​ | 235 | ​ |  | 2,365
Ending Balance, March 31, 2021 | ​ | $ | 12,245 | ​ | $ | 3,397 | ​ | $ | 2,410 | ​ | $ | 735 | ​ | $ | 9 | ​ | $ | 585 | ​ | $ | 19,381
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Individually evaluated for impairment | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Collectively evaluated for impairment | ​ | $ | 12,245 | ​ | $ | 3,397 | ​ | $ | 2,410 | ​ | $ | 735 | ​ | $ | 9 | ​ | $ | 585 | ​ | $ | 19,381
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Ending Balance, March 31, 2021 | ​ | $ | 895,547 | ​ | $ | 250,208 | ​ | $ | 281,964 | ​ | $ | 178,433 | ​ | $ | 793 | ​ | $ | — | ​ | $ | 1,606,945
Individually evaluated for impairment | ​ | $ | 141 | ​ | $ | — | ​ | $ | 448 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 589
Collectively evaluated for impairment | ​ | $ | 895,406 | ​ | $ | 250,208 | ​ | $ | 281,516 | ​ | $ | 178,433 | ​ | $ | 793 | ​ | $ | — | ​ | $ | 1,606,356
​ Gross commercial loans included $7.8 million and $69.6 million of PPP loans as of March 31, 2022 and December 31, 2021, respectively. The Company does not maintain an allowance on these loan balances, as they are 100% guaranteed by the SBA. Management believes the ending allowances at each of the dates indicated were sufficient to absorb the probable losses inherent in the loan portfolio at those dates. The following tables present a summary of impaired loans and the related allowance as of March 31, 2022 and December 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2022
​ | ​ | ​ | ​ | ​ | Recorded | ​ | Recorded | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Unpaid | ​ | Investment | ​ | Investment | ​ | Total | ​ | ​ | ​ | ​ | Average | ​ | Interest
​ | ​ | Principal | ​ | with | ​ | with | ​ | Recorded | ​ | Related | ​ | Recorded | ​ | Income
(Dollars in thousands) | ​ | Balance | ​ | No Allowance | ​ | Allowance | ​ | Investment | ​ | Allowance | ​ | Investment | ​ | Recognized
Real Estate Loans |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Commercial | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Construction and land development |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | —
Residential |  | ​ | 542 |  | ​ | 542 |  | ​ | — |  | ​ | 542 |  | ​ | — |  | ​ | 545 |  | ​ | 5
Commercial |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | —
Consumer |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | —
Total Impaired Loans | ​ | $ | 542 | ​ | $ | 542 | ​ | $ | — | ​ | $ | 542 | ​ | $ | — | ​ | $ | 545 | ​ | $ | 5
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2021
​ | ​ | ​ | ​ | ​ | Recorded | ​ | Recorded | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Unpaid | ​ | Investment | ​ | Investment | ​ | Total | ​ | ​ | ​ | ​ | Average | ​ | Interest
​ | ​ | Principal | ​ | with | ​ | with | ​ | Recorded | ​ | Related | ​ | Recorded | ​ | Income
(Dollars in thousands) | ​ | Balance | ​ | No Allowance | ​ | Allowance | ​ | Investment | ​ | Allowance | ​ | Investment(1) | ​ | Recognized(1)
Real Estate Loans |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Commercial | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Construction and land development |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | —
Residential |  | ​ | 549 |  | ​ | 549 |  | ​ | — |  | ​ | 549 |  | ​ | — |  | ​ | 569 |  | ​ | 24
Commercial |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | —
Consumer |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | — |  | ​ | —
Total Impaired Loans | ​ | $ | 549 | ​ | $ | 549 | ​ | $ | — | ​ | $ | 549 | ​ | $ | — | ​ | $ | 569 | ​ | $ | 24
(1) | Amounts shown for the twelve month period ended December 31, 2021.
​ The following tables present a summary of past due and non-accrual loans by class as of March 31, 2022 and December 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, 2022
​ | ​ | 30-59 Days | ​ | 60-89 Days | ​ | 90 Days or | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 90 Days or More | ​ | ​ | ​
​ | ​ | Past | ​ | Past | ​ | More | ​ | Total Past | ​ | ​ | ​ | ​ | Total | ​ | Past Due and | ​ | Nonaccrual
(Dollars in thousands) |  | Due |  | Due |  | Past Due |  | Due |  | Current |  | Loans |  | Still Accruing |  | Loans
Real Estate Loans |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Commercial | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 992,126 |  | ​ | 992,126 | ​ | $ | — | ​ | $ | —
Construction and land development | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 219,160 |  | ​ | 219,160 | ​ |  | — | ​ |  | —
Residential | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 356,331 |  | ​ | 356,331 | ​ |  | — | ​ |  | —
Commercial | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 60,350 |  | ​ | 60,350 | ​ |  | — | ​ |  | —
Consumer | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 513 |  | ​ | 513 | ​ |  | — | ​ |  | —
Total Loans | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 1,628,480 | ​ | $ | 1,628,480 | ​ | $ | — | ​ | $ | —
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2021
​ | ​ | 30-59 Days | ​ | 60-89 Days | ​ | 90 Days or | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 90 Days or More | ​ | ​ | ​
​ | ​ | Past | ​ | Past | ​ | More | ​ | Total Past | ​ | ​ | ​ | ​ | Total | ​ | Past Due and | ​ | Nonaccrual
(Dollars in thousands) | ​ | Due |  | Due |  | Past Due |  | Due |  | Current |  | Loans |  | Still Accruing |  | Loans
Real Estate Loans |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Commercial | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 968,442 | ​ | $ | 968,442 | ​ | $ | — | ​ | $ | —
Construction and land development | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 231,090 | ​ |  | 231,090 | ​ |  | — | ​ |  | —
Residential | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 342,491 | ​ |  | 342,491 | ​ |  | — | ​ |  | —
Commercial | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 122,945 | ​ |  | 122,945 | ​ |  | — | ​ |  | —
Consumer | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 586 | ​ |  | 586 | ​ |  | — | ​ |  | —
Total Loans | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 1,665,554 | ​ | $ | 1,665,554 | ​ | $ | — | ​ | $ | —
​ The following tables present a summary of credit quality information for loans by class as of March 31, 2022 and December 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, 2022
​ | ​ | ​ | ​ | ​ | Special | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total
(Dollars in thousands) |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Loss |  | Loans
Real Estate Loans |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  | ​ |  |
Commercial | ​ | $ | 985,025 | ​ | $ | 6,974 | ​ | $ | 127 | ​ | $ | — | ​ | $ | — | ​ | $ | 992,126
Construction and land development | ​ |  | 219,160 | ​ |  | — | ​ | ​ | — | ​ |  | — | ​ |  | — | ​ |  | 219,160
Residential | ​ |  | 356,219 | ​ |  | — | ​ |  | 112 | ​ |  | — | ​ |  | — | ​ |  | 356,331
Commercial | ​ |  | 60,350 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 60,350
Consumer | ​ |  | 513 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 513
Total Loans | ​ | $ | 1,621,267 | ​ | $ | 6,974 | ​ | $ | 239 | ​ | $ | — | ​ | $ | — | ​ | $ | 1,628,480
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2021
​ | ​ | ​ | ​ | ​ | Special | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total
(Dollars in thousands) |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Loss |  | Loans
Real Estate Loans | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Commercial | ​ | $ | 961,177 | ​ | $ | 7,029 | ​ | $ | 236 | ​ | $ | — | ​ | $ | — | ​ | $ | 968,442
Construction and land development | ​ |  | 230,704 | ​ |  | — | ​ |  | 386 | ​ |  | — | ​ |  | — | ​ |  | 231,090
Residential | ​ |  | 342,377 | ​ |  | — | ​ |  | 114 | ​ |  | — | ​ |  | — | ​ |  | 342,491
Commercial | ​ |  | 122,945 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 122,945
Consumer | ​ |  | 586 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 586
Total Loans | ​ | $ | 1,657,789 | ​ | $ | 7,029 | ​ | $ | 736 | ​ | $ | — | ​ | $ | — | ​ | $ | 1,665,554
​ The Company assesses credit quality based on internal risk rating of loans. Internal risk rating definitions are: Pass: These include satisfactory loans that have acceptable levels of risk. Special Mention: Loans classified as special mention have a potential weakness that requires close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. These credits do not expose the Company to sufficient risk to warrant further adverse classification. Substandard: A substandard asset is inadequately protected by the current worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in a substandard asset with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss: Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be received in the future. As part of the Company’s loan modification program to borrowers experiencing financial difficulty, the Company may provide concessions to minimize the economic loss and improve long-term loan performance and collectability. The Company had a recorded investment in TDRs of $542 thousand and $549 thousand as of March 31, 2022 and December 31, 2021, respectively. The Company did not have any loans that were determined to be new TDRs during the three months ended March 31, 2022 or during the three months ended March 31, 2021. ​ As of March 31, 2022 and 2021, all loans in TDR status were in compliance with their modified terms. There were no loans modified in TDRs that subsequently defaulted within 12 months of their modification date during the three months ended March 31, 2022 and 2021. All TDRs are considered impaired and impairment is determined on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. As of March 31, 2022 and December 31, 2021, none of the Bank’s TDRs required the recordation of a specific reserve. As of March 31, 2022 and December 31, 2021, there were no additional commitments to disburse funds on loans classified as TDRs.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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