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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of Summary of Loans, by Major Class Within the Company's Loan Portfolio

Major classifications within the Company’s held for investment loan portfolio at June 30, 2022 and December 31, 2021 is as follows:

(in thousands)			June 30, 2022						December 31, 2021
Commercial, financial, and agricultural(a)			$	242,701					$	217,214
Real estate construction − residential			23,629						27,920
Real estate construction − commercial			119,079						91,369
Real estate mortgage − residential			312,086						279,346
Real estate mortgage − commercial			706,700						663,256
Installment and other consumer			23,633						23,028
Total loans held for investment			$	1,427,828					$	1,302,133

(a)Includes $1.1 million and $8.4 million of Small Business Administration Paycheck Protection (SBA PPP) loans, net as of June 30, 2022 and December 31, 2021, respectively.

Schedule of Summary of the Allowance for Loan Losses

The following table illustrates the changes in the allowance for loan losses by portfolio segment:

			Three Months Ended June 30, 2022
(in thousands)			Commercial, Financial, & Agricultural						Real Estate Construction - Residential						Real Estate Construction - Commercial						Real Estate Mortgage - Residential						Real Estate Mortgage - Commercial						Installment and Other Consumer						Un- allocated						Total
Balance at beginning of period			$	2,830					$	60					$	664					$	2,578					$	7,692					$	273					$	182					$	14,279
Additions:
Provision for (release of ) loan losses			184						6						98						149						821						73						(131)						1,200
Deductions:
Loans charged off			25						—						—						—						104						59						—						188
Less recoveries on loans			(16)						—						—						(20)						(1)						(25)						—						(62)
Net loan charge-offs (recoveries)			9						—						—						(20)						103						34						—						126
Balance at end of period			$	3,005					$	66					$	762					$	2,747					$	8,410					$	312					$	51					$	15,353

			Three Months Ended June 30, 2021
(in thousands)			Commercial, Financial, & Agricultural						Real Estate Construction - Residential						Real Estate Construction - Commercial						Real Estate Mortgage - Residential						Real Estate Mortgage - Commercial						Installment and Other Consumer						Un- allocated						Total
Balance at beginning of period			$	4,676					$	309					$	532					$	2,594					$	9,904					$	245					$	101					$	18,361
Additions:
Provision for (release of ) loan losses			655						(58)						(37)						(130)						14						38						(82)						400
Deductions:
Loans charged off			28						—						—						4						3						46						—						81
Less recoveries on loans			(33)						—						—						(7)						—						(15)						—						(55)
Net loan charge-offs (recoveries)			(5)						—						—						(3)						3						31						—						26
Balance at end of period			$	5,336					$	251					$	495					$	2,467					$	9,915					$	252					$	19					$	18,735

			Six Months Ended June 30, 2022
(in thousands)			Commercial, Financial, & Agricultural						Real Estate Construction - Residential						Real Estate Construction - Commercial						Real Estate Mortgage - Residential						Real Estate Mortgage - Commercial						Installment and Other Consumer						Un- allocated						Total
Balance at beginning of period			$	2,717					$	137					$	588					$	2,482					$	10,662					$	256					$	61					$	16,903
Additions:
Provision for (release of ) loan losses			312						(71)						174						242						(2,077)						130						(10)						(1,300)
Deductions:
Loans charged off			60						—						—						—						178						116						—						354
Less recoveries on loans			(36)						—						—						(23)						(3)						(42)						—						(104)
Net loan charge-offs (recoveries)			24						—						—						(23)						175						74						—						250
Balance at end of period			$	3,005					$	66					$	762					$	2,747					$	8,410					$	312					$	51					$	15,353

			Six Months Ended June 30, 2021
(in thousands)			Commercial, Financial, & Agricultural						Real Estate Construction - Residential						Real Estate Construction - Commercial						Real Estate Mortgage - Residential						Real Estate Mortgage - Commercial						Installment and Other Consumer						Un- allocated						Total
Balance at beginning of period			$	5,121					$	213					$	475					$	2,679					$	9,354					$	264					$	7					$	18,113
Additions:
Provision for (release of ) loan losses			87						25						20						(384)						587						53						12						400
Deductions:
Loans charged off			55						—						—						3						26						104						—						188
Less recoveries on loans			(183)						(13)						—						(175)						—						(39)						—						(410)
Net loan charge-offs (recoveries)			(128)						(13)						—						(172)						26						65						—						(222)
Balance at end of period			$	5,336					$	251					$	495					$	2,467					$	9,915					$	252					$	19					$	18,735

Schedule of Allowance for Loan Losses and Recorded Investment by Portfolio Segment

The following table illustrates the allowance for loan losses and recorded investment by portfolio segment:

(in thousands)			Commercial, Financial, and Agricultural						Real Estate Construction - Residential						Real Estate Construction - Commercial						Real Estate Mortgage - Residential						Real Estate Mortgage - Commercial						Installment and Other Consumer						Un- allocated						Total
June 30, 2022
Allowance for loan losses:
Individually evaluated for impairment			$	38					$	—					$	12					$	190					$	40					$	27					$	—					$	307
Collectively evaluated for impairment			2,967						66						750						2,557						8,370						285						51						15,046
Total			$	3,005					$	66					$	762					$	2,747					$	8,410					$	312					$	51					$	15,353
Loans outstanding:
Individually evaluated for impairment			$	313					$	—					$	96					$	2,283					$	16,413					$	209					$	—					$	19,314
Collectively evaluated for impairment			242,388						23,629						118,983						309,803						690,287						23,424						—						1,408,514
Total			$	242,701					$	23,629					$	119,079					$	312,086					$	706,700					$	23,633					$	—					$	1,427,828
December 31, 2021
Allowance for loan losses:
Individually evaluated for impairment			$	42					$	—					$	13					$	166					$	2,815					$	8					$	—					$	3,044
Collectively evaluated for impairment			2,675						137						575						2,316						7,847						248						61						13,859
Total			$	2,717					$	137					$	588					$	2,482					$	10,662					$	256					$	61					$	16,903
Loans outstanding:
Individually evaluated for impairment			$	341					$	—					$	105					$	2,391					$	24,357					$	60					$	—					$	27,254
Collectively evaluated for impairment			216,873						27,920						91,264						276,955						638,899						22,968						—						1,274,879
Total			$	217,214					$	27,920					$	91,369					$	279,346					$	663,256					$	23,028					$	—					$	1,302,133

Schedule of Impaired Loans

The categories of impaired loans at June 30, 2022 and December 31, 2021 are as follows:

(in thousands)			June 30, 2022						December 31, 2021
Non-accrual loans			$	17,648					$	25,459
Performing TDRs			1,666						1,795
Total impaired loans			$	19,314					$	27,254

The following tables provide additional information about impaired loans at June 30, 2022 and December 31, 2021, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided.

(in thousands)			Recorded Investment						Unpaid Principal Balance						Specific Reserves
June 30, 2022
With no related allowance recorded:
Real estate mortgage − commercial			$	15,992					$	16,847					$	—
Total			$	15,992					$	16,847					$	—
With an allowance recorded:
Commercial, financial and agricultural			$	313					$	352					$	38
Real estate construction − commercial			96						132						12
Real estate mortgage − residential			2,283						2,775						190
Real estate mortgage − commercial			421						503						40
Installment and other consumer			209						210						27
Total			$	3,322					$	3,972					$	307
Total impaired loans			$	19,314					$	20,819					$	307

(in thousands)			Recorded Investment						Unpaid Principal Balance						Specific Reserves
December 31, 2021
With no related allowance recorded:
Real estate mortgage − residential			$	1,034					$	1,152					$	—
Real estate mortgage − commercial			15,593						16,057						—
Total			$	16,627					$	17,209					$	—
With an allowance recorded:
Commercial, financial and agricultural			$	341					$	374					$	42
Real estate construction − commercial			105						138						13
Real estate mortgage − residential			1,357						1,730						166
Real estate mortgage − commercial			8,764						9,142						2,815
Installment and other consumer			60						61						8
Total			$	10,627					$	11,445					$	3,044
Total impaired loans			$	27,254					$	28,654					$	3,044

The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated.

			Three Months Ended June 30,																								Six Months Ended June 30,
			2022												2021												2022												2021
(in thousands)			Average Recorded Investment						Interest Recognized For the Period Ended						Average Recorded Investment						Interest Recognized For the Period Ended						Average Recorded Investment						Interest Recognized For the Period Ended						Average Recorded Investment						Interest Recognized For the Period Ended
With no related allowance recorded:
Commercial, financial and agricultural			$	—					$	—					$	1,826					$	5					$	—					$	—					$	1,834					$	13
Real estate mortgage − residential			—						—						1,266						12						—						—						1,391						21
Real estate mortgage − commercial			15,712						—						9,459						—						15,679						—						9,458						—
Total			$	15,712					$	—					$	12,551					$	17					$	15,679					$	—					$	12,683					$	34
With an allowance recorded:
Commercial, financial and agricultural			$	315					$	3					$	5,553					$	7					$	316					$	5					$	5,548					$	13
Real estate construction − residential			—						—						125						—						—						—						158						—
Real estate construction − commercial			97						16						165						—						97						30						182						—
Real estate mortgage − residential			2,327						9						1,692						4						2,333						16						1,779						11
Real estate mortgage − commercial			426						—						16,323						8						428						1						16,189						15
Installment and other consumer			175						—						58						—						175						—						71						3
Total			$	3,340					$	28					$	23,916					$	19					$	3,349					$	52					$	23,927					$	42
Total impaired loans			$	19,052					$	28					$	36,467					$	36					$	19,028					$	52					$	36,610					$	76

Schedule of Aging Information for the Company's Past Due and Non-Accrual Loans

The following table provides aging information for the Company’s past due and non-accrual loans at June 30, 2022 and December 31, 2021.

(in thousands)			Current or Less Than 30 Days Past Due						30 - 89 Days Past Due						90 Days Past Due And Still Accruing						Non-Accrual						Total
June 30, 2022
Commercial, Financial, and Agricultural			$	242,424					$	146					$	—					$	131					$	242,701
Real estate construction − residential			23,629						—						—						—						23,629
Real estate construction − commercial			118,983						—						—						96						119,079
Real estate mortgage − residential			310,554						236						167						1,129						312,086
Real estate mortgage − commercial			688,659						1,944						—						16,097						706,700
Installment and Other Consumer			23,384						52						2						195						23,633
Total			$	1,407,633					$	2,378					$	169					$	17,648					$	1,427,828
December 31, 2021
Commercial, Financial, and Agricultural			$	217,058					$	3					$	—					$	153					$	217,214
Real estate construction − residential			27,920						—						—						—						27,920
Real estate construction − commercial			91,264						—						—						105						91,369
Real estate mortgage − residential			277,532						671						14						1,129						279,346
Real estate mortgage − commercial			638,982						245						—						24,029						663,256
Installment and Other Consumer			22,848						137						—						43						23,028
Total			$	1,275,604					$	1,056					$	14					$	25,459					$	1,302,133

Schedule of Risk Categories by Class

The following table presents the risk categories by class at June 30, 2022 and December 31, 2021.

(in thousands)			Commercial, Financial, & Agricultural						Real Estate Construction - Residential						Real Estate Construction - Commercial						Real Estate Mortgage - Residential						Real Estate Mortgage - Commercial						Installment and other Consumer						Total
At June 30, 2022
Watch			$	8,604					$	—					$	2,837					$	8,326					$	48,612					$	—					$	68,379
Substandard			6,244						—						2,673						524						2,066						—						11,507
Performing TDRs			182						—						—						1,154						316						14						1,666
Non-accrual loans			131						—						96						1,129						16,097						195						17,648
Total			$	15,161					$	—					$	5,606					$	11,133					$	67,091					$	209					$	99,200
At December 31, 2021
Watch			$	9,219					$	—					$	4,304					$	12,185					$	43,348					$	—					$	69,056
Substandard			6,284						—						2,673						750						2,305						—						12,012
Performing TDRs			188						—						—						1,262						328						17						1,795
Non-accrual loans			153						—						105						1,129						24,029						43						25,459
Total			$	15,844					$	—					$	7,082					$	15,326					$	70,010					$	60					$	108,322

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