Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 07, 2023 | Jun. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | Southern First Bancshares, Inc. | ||
Trading Symbol | SFST | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 8,048,025 | ||
Entity Public Float | $ 327,641,105 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001090009 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-27719 | ||
Entity Incorporation, State or Country Code | SC | ||
Entity Tax Identification Number | 58-2459561 | ||
Entity Address, Address Line One | 6 Verdae Boulevard | ||
Entity Address, City or Town | Greenville | ||
Entity Address, State or Province | SC | ||
Entity Address, Postal Zip Code | 29607 | ||
Local Phone Number | 679-9000 | ||
City Area Code | 864 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm ID | 149 | ||
Auditor Name | Elliott Davis, LLC | ||
Auditor Location | Greenville, South Carolina |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 18,788 | $ 21,770 |
Federal funds sold | 101,277 | 86,882 |
Interest-bearing deposits with banks | 50,809 | 58,557 |
Total cash and cash equivalents | 170,874 | 167,209 |
Investment securities: | ||
Investment securities available for sale | 93,347 | 120,281 |
Other investments | 10,833 | 4,021 |
Total investment securities | 104,180 | 124,302 |
Mortgage loans held for sale | 3,917 | 13,556 |
Loans | 3,273,363 | 2,489,877 |
Less allowance for credit losses | (38,639) | (30,408) |
Loans, net | 3,234,724 | 2,459,469 |
Bank owned life insurance | 51,122 | 49,833 |
Property and equipment, net | 99,183 | 92,370 |
Deferred income taxes, net | 12,522 | 8,397 |
Other assets | 15,459 | 10,412 |
Total assets | 3,691,981 | 2,925,548 |
LIABILITIES | ||
Deposits | 3,133,864 | 2,563,826 |
Federal Home Loan Bank advances and other borrowings | 175,000 | |
Subordinated debentures | 36,214 | 36,106 |
Other liabilities | 52,391 | 47,715 |
Total liabilities | 3,397,469 | 2,647,647 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, par value $.01 per share, 10,000,000 shares authorized | ||
Common stock, par value $.01 per share, 10,000,000 shares authorized, 8,011,045 and 7,925,819 shares issued and outstanding at December 31, 2022 and 2021, respectively | 80 | 79 |
Nonvested restricted stock | (3,306) | (1,435) |
Additional paid-in capital | 119,027 | 114,226 |
Accumulated other comprehensive loss | (13,410) | (740) |
Retained earnings | 192,121 | 165,771 |
Total shareholders’ equity | 294,512 | 277,901 |
Total liabilities and shareholders’ equity | $ 3,691,981 | $ 2,925,548 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, issued shares | 8,011,045 | 7,925,819 |
Common stock, outstanding shares | 8,011,045 | 7,925,819 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income | |||
Loans | $ 114,233 | $ 91,599 | $ 93,133 |
Investment securities | 1,990 | 1,335 | 1,415 |
Federal funds sold and interest-bearing deposits with banks | 1,439 | 233 | 270 |
Total interest income | 117,662 | 93,167 | 94,818 |
Interest expense | |||
Deposits | 18,102 | 3,909 | 13,055 |
Borrowings | 1,939 | 1,526 | 1,953 |
Total interest expense | 20,041 | 5,435 | 15,008 |
Net interest income | 97,621 | 87,732 | 79,810 |
Provision for (reversal of) credit losses | 6,155 | (12,400) | 29,600 |
Net interest income after provision for credit losses | 91,466 | 100,132 | 50,210 |
Noninterest income | |||
Mortgage banking income | 4,198 | 11,376 | 19,785 |
Service fees on deposit accounts | 782 | 757 | 860 |
ATM and debit card income | 2,225 | 2,092 | 1,741 |
Income from bank owned life insurance | 1,289 | 1,231 | 1,091 |
Net lender fees on PPP loan sale | 268 | 2,247 | |
Other income | 1,086 | 1,377 | 1,629 |
Total noninterest income | 9,580 | 17,101 | 27,353 |
Noninterest expenses | |||
Compensation and benefits | 38,790 | 36,103 | 34,681 |
Occupancy | 9,105 | 6,956 | 6,232 |
Other real estate owned expenses, net | 385 | 1,223 | |
Outside service and data processing costs | 6,112 | 5,468 | 4,860 |
Insurance | 1,686 | 1,149 | 1,380 |
Professional fees | 2,635 | 2,589 | 2,275 |
Marketing | 1,216 | 905 | 690 |
Other | 3,389 | 2,875 | 2,403 |
Total noninterest expenses | 62,933 | 56,430 | 53,744 |
Income before income tax expense | 38,113 | 60,803 | 23,819 |
Income tax expense | 8,998 | 14,092 | 5,491 |
Net income available to common shareholders | $ 29,115 | $ 46,711 | $ 18,328 |
Earnings per common share | |||
Basic (in Dollars per share) | $ 3.66 | $ 5.96 | $ 2.37 |
Diluted (in Dollars per share) | $ 3.61 | $ 5.85 | $ 2.34 |
Weighted average common shares outstanding | |||
Basic (in Shares) | 7,958,294 | 7,843,692 | 7,718,615 |
Diluted (in Shares) | 8,071,690 | 7,988,980 | 7,824,214 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net income | $ 29,115 | $ 46,711 | $ 18,328 |
Unrealized gain (loss) on securities available for sale: | |||
Unrealized holding gain (loss) arising during the period, pretax | (16,027) | (2,232) | 1,675 |
Tax (expense) benefit | 3,367 | 467 | (352) |
Reclassification of realized (gain) loss | (12) | 3 | (3) |
Tax expense | 2 | (1) | 1 |
Other comprehensive income (loss) | (12,670) | (1,763) | 1,321 |
Comprehensive income | $ 16,445 | $ 44,948 | $ 19,649 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Common stock | Preferred stock | Nonvested restricted stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained Earnings | Total |
Balance at Dec. 31, 2019 | $ 77 | $ (803) | $ 106,152 | $ (298) | $ 100,732 | $ 205,860 | |
Balance (in Shares) at Dec. 31, 2019 | 7,672,678 | ||||||
Net income | 18,328 | 18,328 | |||||
Proceeds from exercise of stock options | $ 1 | 1,387 | 1,388 | ||||
Proceeds from exercise of stock options (in Shares) | 93,870 | ||||||
Issuance of restricted stock, net of forfeitures | (275) | 275 | |||||
Issuance of restricted stock, net of forfeitures (in Shares) | 6,200 | ||||||
Compensation expense related to restricted stock, net of tax | 380 | 380 | |||||
Compensation expense related to stock options, net of tax | 1,017 | 1,017 | |||||
Other comprehensive income (Loss) | 1,321 | 1,321 | |||||
Balance at Dec. 31, 2020 | $ 78 | (698) | 108,831 | 1,023 | 119,060 | 228,294 | |
Balance (in Shares) at Dec. 31, 2020 | 7,772,748 | ||||||
Net income | 46,711 | 46,711 | |||||
Proceeds from exercise of stock options | $ 1 | 3,011 | 3,012 | ||||
Proceeds from exercise of stock options (in Shares) | 127,871 | ||||||
Issuance of restricted stock, net of forfeitures | (1,236) | 1,236 | |||||
Issuance of restricted stock, net of forfeitures (in Shares) | 25,200 | ||||||
Compensation expense related to restricted stock, net of tax | 499 | 499 | |||||
Compensation expense related to stock options, net of tax | 1,148 | 1,148 | |||||
Other comprehensive income (Loss) | (1,763) | (1,763) | |||||
Balance at Dec. 31, 2021 | $ 79 | (1,435) | 114,226 | (740) | 165,771 | 277,901 | |
Balance (in Shares) at Dec. 31, 2021 | 7,925,819 | ||||||
Net income | 29,115 | 29,115 | |||||
Adoption of ASU 2016-13 | (2,765) | (2,765) | |||||
Proceeds from exercise of stock options | $ 1 | 904 | 905 | ||||
Proceeds from exercise of stock options (in Shares) | 32,375 | ||||||
Issuance of restricted stock, net of forfeitures | (2,970) | 2,970 | |||||
Issuance of restricted stock, net of forfeitures (in Shares) | 52,851 | ||||||
Compensation expense related to restricted stock, net of tax | 1,099 | 1,099 | |||||
Compensation expense related to stock options, net of tax | 927 | 927 | |||||
Other comprehensive income (Loss) | (12,670) | (12,670) | |||||
Balance at Dec. 31, 2022 | $ 80 | $ (3,306) | $ 119,027 | $ (13,410) | $ 192,121 | $ 294,512 | |
Balance (in Shares) at Dec. 31, 2022 | 8,011,045 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income | $ 29,115 | $ 46,711 | $ 18,328 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for (reversal of) credit losses | 6,155 | (12,400) | 29,600 |
Depreciation and other amortization | 3,698 | 2,319 | 2,190 |
Accretion and amortization of securities discounts and premiums, net | 694 | 935 | 710 |
Write-down of real estate owned | 1,029 | ||
Loss on sale of other real estate owned | 376 | ||
(Gain) loss on sale of investment securities available for sale | (12) | 3 | (3) |
(Gain) loss on sale of fixed assets | 394 | (10) | (196) |
Net change in operating leases | 872 | 605 | 180 |
Compensation expense related to stock options and restricted stock grants | 2,026 | 1,647 | 1,397 |
Gain on sale of loans held for sale | (2,914) | (13,676) | (21,186) |
Loans originated and held for sale | (165,698) | (486,145) | (594,289) |
Proceeds from sale of loans held for sale | 178,251 | 546,522 | 582,264 |
Increase in cash surrender value of bank owned life insurance | (1,289) | (1,231) | (1,091) |
(Increase) decrease in deferred tax asset | (22) | 1,589 | (2,741) |
(Increase) decrease in other assets, net | (5,047) | 2,126 | (4,670) |
Increase (decrease) in other liabilities, net | 4,082 | (11,302) | 9,097 |
Net cash provided by operating activities | 50,305 | 78,069 | 20,619 |
Investing activities | |||
Increase in loans, net | (782,130) | (348,718) | (203,632) |
Purchase of property and equipment | (13,950) | (26,509) | (7,276) |
Purchase of investment securities: | |||
Available for sale | (13,048) | (49,393) | (50,854) |
Other investments | (27,751) | (2,250) | (2,338) |
Proceeds from maturities, calls and repayments of investment securities: | |||
Available for sale | 10,833 | 20,673 | 24,784 |
Other investments | 20,939 | 1,861 | 5,651 |
Proceeds from sale of investment securities available for sale | 12,429 | ||
Purchase of bank owned life insurance policies | (7,500) | ||
Proceeds from sale of fixed assets | 95 | 50 | 2,895 |
Proceeds from sale of other real estate owned | 1,159 | ||
Net cash used for investing activities | (792,583) | (410,627) | (230,770) |
Financing activities | |||
Increase in deposits, net | 570,038 | 421,068 | 266,634 |
Increase (decrease) in Federal Home Loan Bank advances and other borrowings | 175,000 | (25,000) | (85,000) |
Proceeds from the exercise of stock options | 905 | 3,012 | 1,388 |
Net cash provided by financing activities | 745,943 | 399,080 | 183,022 |
Net increase (decrease) in cash and cash equivalents | 3,665 | 66,522 | (27,129) |
Cash and cash equivalents, beginning of year | 167,209 | 100,687 | 127,816 |
Cash and cash equivalents, end of year | 170,874 | 167,209 | 100,687 |
Supplemental information | |||
Interest | 18,877 | 6,402 | 16,312 |
Income taxes | 11,828 | 21,652 | 2,741 |
Schedule of non-cash transactions | |||
Foreclosure of other real estate | 367 | 2,198 | |
Unrealized gain (loss) on securities, net of income taxes | (12,660) | (1,765) | 1,323 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | $ 595 | $ 10,221 | $ 2,115 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Activities | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Activities | NOTE 1 – Summary of Significant Accounting Policies and Activities Southern First Bancshares, Inc. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Southern First Bank. In consolidation, all significant intercompany transactions have been eliminated. The accounting and reporting policies conform to accounting principles generally accepted in the United States of America. In accordance with guidance issued by the Financial Accounting Standards Board (“FASB”), the operations of the Trusts have not been consolidated in these financial statements. Business Segments The Company, through the Bank, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, and Georgia. These services include demand, time and savings deposits; lending services; ATM processing and mortgage banking services. While the Company’s management periodically reviews limited production information for these revenue streams, that information is not complete as it does not include a full allocation of revenue, costs and capital from key corporate functions. Management will continue to evaluate these lines of business for separate reporting as facts and circumstances change. Accordingly, the Company’s various banking operations are not considered by management to constitute more than one reportable operating segment. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, derivatives, real estate acquired in settlement of loans, fair value of financial instruments, evaluating investment securities for credit impairment and valuation of deferred tax assets. Risks and Uncertainties In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different bases, than its interest-earning assets. Credit risk is the risk of default within the Company’s loan portfolio that results from borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company. The Company is subject to the regulations of various governmental agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to changes with respect to valuation of assets, amount of required loan loss allowance and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. The Bank makes loans to individuals and businesses in the Upstate, Midlands, and Lowcountry regions of South Carolina as well as the Triangle, Triad and Charlotte regions of North Carolina and Atlanta, Georgia for various personal and commercial purposes. The Bank’s loan portfolio has a concentration of real estate loans. As of December 31, 2022 and 2021, real estate loans represented 84.8% and 85.5%, respectively, of total loans. However, borrowers’ ability to repay their loans is not dependent upon any specific economic sector. As of December 31, 2022, the Company’s and the Bank’s capital ratios were in excess of all regulatory requirements. While management believes that we have sufficient capital to withstand an extended economic recession, our reported and regulatory capital ratios could be adversely impacted by further credit losses. The Company maintains access to multiple sources of liquidity, including a $15.0 million holding company line of credit with another bank which could be used to support capital ratios at the subsidiary bank. As of December 31, 2022, the $15.0 million line was unused. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether there have been any subsequent events since the balance sheet date and determined that no subsequent events occurred requiring accrual or disclosure. Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders’ equity or net income. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest bearing deposits and federal funds sold. Cash and cash equivalents have original maturities of three months or less, and federal funds sold are generally purchased and sold for one-day periods. Accordingly, the carrying value of these instruments is deemed to be a reasonable estimate of fair value. At December 31, 2022 and 2021, included in cash and cash equivalents was $5.8 million and $5.2 million, respectively, on deposit with the Federal Reserve Bank. Investment Securities We classify our investment securities as held to maturity securities, trading securities and available for sale securities as applicable. Investment securities are designated as held to maturity if we have the intent and the ability to hold the securities to maturity. Held to maturity securities are carried at amortized cost, adjusted for the amortization of any related premiums or the accretion of any related discounts into interest income using a methodology which approximates a level yield of interest over the estimated remaining period until maturity. Investment securities that are purchased and held principally for the purpose of selling in the near term are reported as trading securities. Trading securities are carried at fair value with unrealized holding gains and losses included in earnings. We classify investment securities as available for sale when at the time of purchase we determine that such securities may be sold at a future date or if we do not have the intent or ability to hold such securities to maturity. Securities designated as available for sale are recorded at fair value. Changes in the fair value of available for sale debt securities are included in shareholders’ equity as unrealized gains or losses, net of the related tax effect. Realized gains or losses on available for sale securities are computed on the specific identification basis. Other Investments Other investments include stock acquired for membership and regulatory purposes, such as Federal Home Loan Bank of Atlanta (“FHLB”) stock, investments in unconsolidated subsidiaries and other nonmarketable securities. FHLB stock is generally pledged against any borrowings from the FHLB and cash dividends on our FHLB stock are recorded in investment income. Other nonmarketable securities consist of investments in funds related to the Small Business Investment Company (“SBIC”) and Rural Business Investment Company (“RBIC”) programs. No ready market exists for these stocks and they have no quoted market value. As a result, these securities are carried at cost and are periodically evaluated for impairment. Loans Loans are stated at the principal balance outstanding. Unamortized net loan fees and the allowance for possible credit losses are deducted from total loans on the balance sheets. Interest income is recognized over the term of the loan based on the principal amount outstanding. The net of loan origination fees received and direct costs incurred in the origination of loans is deferred and amortized to interest income over the contractual life of the loans adjusted for actual principal prepayments using a method approximating the interest method. Nonaccrual and Past Due Loans Loans are generally placed on nonaccrual status when principal or interest becomes 90 days past due, or when payment in full is not anticipated. When a loan is placed on nonaccrual status, interest accrued but not received is generally reversed against interest income. Cash receipts on nonaccrual loans are not recorded as interest income, but are used to reduce the loan’s principal balance. A nonaccrual loan is generally returned to accrual status and accrual of interest is resumed when payments have been made according to the terms and conditions of the loan for a continuous six month period. Our loans are considered past due when contractually required principal or interest payments have not been made on the due dates. Nonperforming Assets Nonperforming assets include real estate acquired through foreclosure or deed taken in lieu of foreclosure, loans on nonaccrual status and loans past due 90 days or more and still accruing interest. Loans are placed on nonaccrual status when, in the opinion of management, the collection of additional interest is uncertain. Thereafter no interest is taken into income until such time as the borrower demonstrates the ability to pay both principal and interest. Individually Evaluated Loans Our individually evaluated loans include loans on nonaccrual status and loans modified in a troubled debt restructuring (“TDR”), whether on accrual or nonaccrual status. For loans that are classified as individually evaluated, an allowance is established when the fair value (discounted cash flows, collateral value, or observable market price) of the individually evaluated loan less costs to sell, are lower than the carrying value of that loan. A loan is considered individually evaluated when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due, among other factors. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as individually evaluated. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including, without limitation, the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and consumer loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Loan Charge-off Policy For commercial loans, we generally fully charge off or charge collateralized loans down to net realizable value when management determines the loan to be uncollectible; repayment is deemed to be projected beyond reasonable time frames; the loan has been classified as a loss by either our internal loan review process or our banking regulatory agencies; the client has filed bankruptcy and the loss becomes evident owing to a lack of assets; or the loan is 120 days past due unless both well-secured and in the process of collection. For consumer loans, we generally charge down to net realizable value when the loan is 180 days past due. Troubled Debt Restructuring (TDRs) The Company considers a loan to be a TDR when the debtor experiences financial difficulties and the Company provides concessions such that we will not collect all principal and interest in accordance with the original terms of the loan agreement. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of our workout plan for individual loan relationships, we may restructure loan terms to assist borrowers facing challenges in the current economic environment. As permitted by the CARES Act, we do not consider loan modifications to borrowers affected by COVID-19 to be TDRs unless the borrower was 30 days or more past due as of December 31, 2019, (ii) the modifications were related to COVID-19, and (iii) the modification occurred between March 1, 2020 and January 1, 2022. Our policy with respect to accrual of interest on loans restructured in a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms; continued accrual of interest at the restructured interest rate is likely. If a borrower was materially delinquent on payments prior to the restructuring, but shows capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual going forward. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. We will continue to closely monitor these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured note terms. If, after previously being classified as a TDR, a loan is restructured a second time and the borrower continues to experience financial difficulties, then that loan is automatically placed on nonaccrual status. Our policy with respect to nonperforming loans requires the borrower to make a minimum of six consecutive payments of principal and interest in accordance with the loan terms before that loan can be placed back on accrual status. Further, the borrower must show capacity to continue performing into the future prior to restoration of accrual status. In addition, our policy, in accordance with supervisory guidance, also provides for a loan to be removed from TDR status if the loan is modified or renewed at terms consistent with current market rates and the loan has been performing under modified terms for an extended period of time or under certain circumstances. In the determination of the allowance for credit losses, management considers TDRs on commercial and consumer loans and subsequent defaults in these restructurings by measuring impairment, on a loan by loan basis, based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Other Real Estate Owned Real estate acquired through foreclosure is initially recorded at the lower of cost or estimated fair value less selling costs. Subsequent to the date of acquisition, it is carried at the lower of cost or fair value, adjusted for net selling costs. Fair values of real estate owned are reviewed regularly and write-downs are recorded when it is determined that the carrying value of real estate exceeds the fair value less estimated costs to sell. Costs relating to the development and improvement of such property are capitalized, whereas those costs relating to holding the property are expensed. Property and Equipment Property and equipment are stated at cost. Major repairs are charged to operations, while major improvements are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Upon retirement, sale, or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts, and gain or loss is included in income from operations. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. Operating Leases Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)” which requires for all operating leases the recognition of a right-of-use (“ROU”) asset and a corresponding lease liability, in the balance sheet. Upon adoption, the Company elected practical expedients including existing leases retaining their classification as operating leases and combining lease and non-lease components. The Company also elected to not recognize right-of-use assets and lease liabilities arising from short-term leases. Bank Owned Life Insurance Policies Bank owned life insurance policies represent the cash value of policies on certain officers of the Company. Comprehensive Income Comprehensive income (loss) consists of net income and net unrealized gains (losses) on securities and is presented in the statements of shareholders’ equity and comprehensive income. The statement requires only additional disclosures in the consolidated financial statements; it does not affect our results of operations. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in Topic 606 that affect the determination of the amount and timing of revenue from contracts with customers. Income Taxes The financial statements have been prepared on the accrual basis. When income and expenses are recognized in different periods for financial reporting purposes versus for the purposes of computing income taxes currently payable, deferred taxes are provided on such temporary differences. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The Company believes that its income tax filing positions taken or expected to be taken on its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded. The Company’s federal and state income tax returns are open and subject to examination from the 2019 tax return year and forward. Stock-Based Compensation The Company has a stock-based employee compensation plan. Compensation cost is recognized for all stock options granted and for any outstanding unvested awards as if the fair value method had been applied to those awards as of the date of grant. Adoption of New Accounting Standard In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU introduced a new credit loss methodology, the Current Expected Credit Loss (“CECL”) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. Since its original issuance in 2016, the FASB has issued several updates to the original ASU. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities, and other receivables at the time the financial asset is originated or acquired. It also applies to off-balance sheet credit exposures, such as unfunded commitments to extend credit. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. For available-for-sale securities where fair value is less than cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. On January 1, 2022, the Company adopted the guidance prospectively with a cumulative adjustment to retained earnings. Results for reporting periods beginning after January 1, 2022 are presented under CECL while prior period amounts continue to be reported in accordance with the previously applicable incurred loss accounting methodology. The transition adjustment for the adoption of CECL included an increase in the allowance for credit losses on loans of $1.5 million and an increase in the reserve for unfunded loan commitments of $2.0 million, which is recorded within other liabilities. The adoption of CECL had an insignificant impact on the Company’s investment securities portfolio. The Company recorded a net decrease to retained earnings of $2.8 million as of January 1, 2022 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Federal banking regulatory agencies provided optional relief to delay the adverse regulatory capital impact of CECL at adoption. The Company did not elect to use this optional relief. Significant Accounting Policy Changes Upon adoption of Topic 326, the Company revised the accounting policy for the Allowance for Credit Losses as detailed below. Allowance for Credit Losses – Investment Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income with the establishment of an allowance under CECL compared to a direct write down of the security under Incurred Loss. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether any decline in fair value is due to credit loss factors. In making this assessment, management considers any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses under CECL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At December 31, 2022, there was no allowance for credit losses related to the available-for-sale portfolio. In addition, the Company had no held to maturity securities at December 31, 2022. Accrued interest receivable on available for sale debt securities totaled $382,000 at December 31, 2022 and was excluded from the estimate of credit losses. Allowance for Credit Losses - Loans Under the current expected credit loss model, the allowance for credit losses on loans is a valuation allowance estimated at each balance sheet date in accordance with GAAP that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Management assesses the adequacy of the allowance on a quarterly basis. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management’s evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers’ ability to repay a loan, the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. Management believes the level of the allowance for credit losses is adequate to absorb all expected future losses inherent in the loan portfolio at the balance sheet date. The allowance is increased through provision for credit losses and decreased by charge-offs, net of recoveries of amounts previously charged-off. The allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Commercial loans ● Owner occupied real estate - Owner occupied commercial mortgages consist of loans to purchase or re-finance owner occupied nonresidential properties. This includes office buildings, other commercial facilities, and farmland. Commercial mortgages secured by owner occupied properties are primarily dependent on the ability of borrowers to achieve business results consistent with those projected at loan origination. While these loans and leases are collateralized by real property in an effort to mitigate risk, it is possible the liquidation of collateral will not fully satisfy the obligation. ● Non-owner occupied real estate - Non-owner occupied commercial mortgages consist of loans to purchase or refinance investment nonresidential properties. This includes office buildings and other facilities rented or leased to unrelated parties, as well as farmland and multifamily properties. The primary risk associated with income producing commercial mortgage loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. While these loans are collateralized by real property in an effort to mitigate risk, it is possible the liquidation of collateral will not fully satisfy the obligation. ● Construction - Construction loans consist of loans to finance land for development of commercial or residential real property and construction of multifamily apartments or other commercial properties. These loans are highly dependent on the supply and demand for commercial real estate as well as the demand for newly constructed residential homes and lots acquired for development. Deterioration in demand could result in decreased collateral values, which could make repayments of outstanding loans difficult for customers. ● Commercial business - Commercial business loans consist of loans or lines of credit to finance accounts receivable, inventory or other general business needs, business credit cards, and lease financing agreements for equipment, vehicles, or other assets. The primary risk associated with commercial and industrial and lease financing loans is the ability of borrowers to achieve business results consistent with those projected at origination. Failure to achieve these projections presents risk the borrower will be unable to service the debt consistent with the contractual terms of the loan. Consumer loans ● Real estate - Residential mortgages consist of loans to purchase or refinance the borrower’s primary dwelling, second residence or vacation home and are often secured by 1-4 family residential property. Significant and rapid declines in real estate values can result in borrowers having debt levels in excess of the current market value of the collateral. ● Home equity – Home equity loans consist of home equity lines of credit and other lines of credit secured by first or second liens on the borrower’s primary residence. These loans are secured by both senior and junior liens on the residential real estate and are particularly susceptible to declining collateral values. This risk is elevated for loans secured by junior lines as a substantial decline in value could render the junior lien position effectively unsecured. ● Construction - Construction loans consist of loans to construct a borrower’s primary or secondary residence or vacant land upon which the owner intends to construct a dwelling at a future date. These loans are typically secured by undeveloped or partially developed land in anticipation of completing construction of a 1-4 family residential property. There is risk these construction and development projects can experience delays and cost overruns exceeding the borrower’s financial ability to complete the project. Such cost overruns can result in foreclosure of partially completed and unmarketable collateral. ● Other - Consumer loans consist of loans to finance unsecured home improvements, student loans, automobiles and revolving lines of credit that can be secured or unsecured. The value of the underlying collateral within this class is at risk of potential rapid depreciation which could result in unpaid balances in excess of the collateral. For all loan pools, the Company uses a lifetime probability of default and loss given default modeling approach to estimate the allowance for credit losses on loans. This method uses historical correlations between default experience and the age of loans to forecast defaults and losses, assuming that a loan in a pool shares similar risk characteristics such as loan product type, risk rating and loan age, and demonstrates similar default characteristics as other loans in that pool, as the loan progresses through its lifecycle. The Company calculates lifetime probability of default and loss given default rates based on historical loss experience, which is used to calculate expected losses based on the pool’s loss rate and the age of loans in the pool. Management believes that the Company’s historical loss experience provides the best basis for its assessment of expected credit losses to determine the allowance for credit losses. The Company uses its own internal data to measure historical credit loss experience within the pools with similar risk characteristics over |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows: December 31, 2022 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale Corporate bonds $ 2,172 - 289 1,883 US treasuries 999 - 128 871 US government agencies 13,007 - 2,390 10,617 State and political subdivisions 22,910 - 4,004 18,906 Asset-backed securities 6,435 - 206 6,229 Mortgage-backed securities FHLMC 24,086 - 3,745 20,341 FNMA 35,141 - 5,520 29,621 GNMA 5,573 - 694 4,879 Total mortgage-backed securities 64,800 - 9,959 54,841 Total $ 110,323 - 16,976 93,347 December 31, 2021 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale Corporate bonds $ 2,198 - 10 2,188 US treasuries 999 - 7 992 US government agencies 14,504 1 336 14,169 SBA securities 429 9 - 438 State and political subdivisions 24,887 549 260 25,176 Asset-backed securities 10,136 45 17 10,164 Mortgage-backed securities FHLMC 23,057 102 494 22,665 FNMA 40,924 235 660 40,499 GNMA 4,084 3 97 3,990 Total mortgage-backed securities 68,065 340 1,251 67,154 Total $ 121,218 944 1,881 120,281 During 2022, approximately $12.6 million of investment securities were either sold or called, subsequently resulting in a gross gain on sale of investment securities of $83,000 and a gross loss on sale of investment securities of $71,000. During 2021, approximately $770,000 of investment securities were either sold or called, resulting in a gross gain on sale of investment securities of $6,000 and a gross loss on sale of investment securities of $9,000. During 2020, approximately $2.0 million of investment securities were either sold or called, resulting in a gross gain on sale of investment securities of $4,000 and a gross loss on sale of investment securities of $1,000. The amortized costs and fair values of investment securities available for sale at December 31, 2022 and 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to prepay the obligations. December 31, 2022 December 31, 2021 (dollars in thousands) Amortized Cost Fair Amortized Fair Available for sale Due within one year $ - - $ 384 387 Due after one through five years 9,398 8,277 7,429 7,363 Due after five through ten years 24,436 20,043 27,298 26,953 Due after ten years 76,489 65,027 86,107 85,578 $ 110,323 93,347 $ 121,218 120,281 The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021. December 31, 2022 Less than 12 months 12 months or longer Total (dollars in thousands) # Fair Unrealized # Fair Unrealized # Fair Unrealized As of December 31, 2022 Available for sale Corporate bonds 0 $ - $ - 1 $ 1,883 $ 289 1 $ 1,883 $ 289 US treasuries 0 - - 1 871 128 1 871 128 US government agencies 0 - - 10 10,617 2,390 10 10,617 2,390 State and political subdivisions 10 5,101 763 22 13,805 3,241 32 18,906 4,004 Asset-backed 5 4,291 135 3 1,938 71 8 6,229 206 Mortgage-backed FHLMC 4 3,712 155 17 16,629 3,590 21 20,341 3,745 FNMA 9 2,208 201 28 27,413 5,319 37 29,621 5,520 GNMA 1 103 7 6 4,776 687 7 4,879 694 29 $ 15,415 $ 1,261 88 $ 77,932 $ 15,715 117 $ 93,347 $ 16,976 December 31, 2021 Less than 12 months 12 months or longer Total (dollars in thousands) # Fair Unrealized # Fair Unrealized # Fair Unrealized As of December 31, 2021 Available for sale Corporate bonds 1 $ 2,188 $ 10 - $ - $ - 1 $ 2,188 $ 10 US treasuries 1 992 7 - - - 1 992 7 US government agencies 7 9,831 173 4 3,837 163 11 13,668 336 State and political subdivisions 9 7,821 193 6 2,909 67 15 10,730 260 Asset-backed 2 1,751 9 2 1,717 7 4 3,468 16 Mortgage-backed FHLMC 10 13,705 303 4 4,644 192 14 18,349 495 FNMA 11 16,098 296 9 11,264 364 20 27,362 660 GNMA 2 655 4 3 3,215 93 5 3,870 97 43 $ 53,041 $ 995 28 $ 27,586 $ 886 71 $ 80,627 $ 1,881 At December 31, 2022, the Company had 117 individual investments that were in an unrealized loss position. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. Other investments are comprised of the following and are recorded at cost which approximates fair value: December 31, (dollars in thousands) 2022 2021 Federal Home Loan Bank stock $ 9,250 $ 1,241 Other nonmarketable investments 1,180 2,377 Investment in Trust Preferred subsidiaries 403 403 Total other investments $ 10,833 $ 4,021 The Company has evaluated other investments for impairment and determined that the other investments are not other than temporarily impaired as of December 31, 2022 and ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB. At December 31, 2022 and 2021, there were no securities pledged as collateral for repurchase agreements from brokers. |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage Loans Held For Sale [Abstract] | |
Mortgage Loans Held for Sale | NOTE 3 – Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are reported as loans held for sale and carried at fair value under the fair value option with changes in fair value recognized in current period earnings. Loans held for sale include mortgage loans which are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices or market price equivalents, which would be used by other market participants. At the date of funding of the mortgage loan held for sale, the funded amount of the loan, the related derivative asset or liability of the associated interest rate lock commitment, less direct loan costs becomes the initial recorded investment in the loan held for sale. Such amount approximates the fair value of the loan. At December 31, 2022, mortgage loans held for sale totaled $3.9 million compared to $13.6 million at December 31, 2021. Mortgage loans held for sale are considered de-recognized, or sold, when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before their maturity or the ability to unilaterally cause the holder to return specific assets. Gains and losses from the sale of mortgage loans are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale and are recorded in mortgage banking income in the statement of income. Mortgage banking income also includes the unrealized gains and losses associated with the loans held for sale and the realized and unrealized gains and losses from derivatives. Mortgage loans sold to investors by the Company, and which were believed to have met investor and agency underwriting guidelines at the time of sale, may be subject to repurchase or indemnification in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company may, upon mutual agreement, agree to repurchase the loans or indemnify the investor against future losses on such loans. In such cases, the Company bears any subsequent credit loss on the loans. As appropriate, the Company establishes mortgage repurchase reserves related to various representations and warranties that reflect management’s estimate of losses. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Loans and Allowance for Credit Losses [Abstract] | |
Loans and Allowance for Credit Losses | NOTE 4 – Loans and Allowance for Credit Losses The Company makes loans to individuals and small businesses for various personal and commercial purposes primarily in the Upstate, Midlands, and Lowcountry regions of South Carolina, the Triangle and Triad regions of North Carolina as well as Atlanta, Georgia. The Company’s loan portfolio is not concentrated in loans to any single borrower or a relatively small number of borrowers. The Company focuses its lending activities primarily on the professional markets in these regions including doctors, dentists, and small business owners. The principal component of the loan portfolio is loans secured by real estate mortgages which account for 84.8% of total loans at December 31, 2022. Commercial loans comprise 57.1% of total real estate loans and consumer loans account for 42.9%. Commercial real estate loans are further categorized into owner occupied which represents 18.7% of total loans and non-owner occupied loans which represents 26.3%. Commercial construction loans represent only 3.4% of the total loan portfolio. In addition to monitoring potential concentrations of loans to particular borrowers or groups of borrowers, industries and geographic regions, management monitors exposure to credit risk from concentrations of lending products and practices such as loans that subject borrowers to substantial payment increases (e.g. principal deferral periods, loans with initial interest-only periods, etc.), and loans with high loan-to-value ratios. Additionally, there are industry practices that could subject the Company to increased credit risk should economic conditions change over the course of a loan’s life. For example, the Company makes variable rate loans and fixed rate principal-amortizing loans with maturities prior to the loan being fully paid (i.e. balloon payment loans). The various types of loans are individually underwritten and monitored to manage the associated risks. Paycheck Protection Program (“PPP”) On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act or the “Act”) to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic. The Small Business Administration (“SBA”) received funding and authority through the Act to modify existing loan programs and establish a new loan program to assist small businesses nationwide adversely impacted by the COVID-19 emergency. The Act temporarily permits the SBA to guarantee 100% of certain loans under a new program titled the “Paycheck Protection Program” and also provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the PPP. In an effort to assist our clients as best we could through the pandemic, we became an approved SBA lender in March 2020 and processed 853 loans under the PPP for a total of $97.5 million, receiving SBA lender fee income of $3.9 million. As the regulations and guidance for PPP loans and the forgiveness process continued to change and evolve, management recognized the operational risk and complexity associated with this portfolio and decided to pursue the sale of the PPP loan portfolio to a third party better suited to support and serve our PPP clients through the loan forgiveness process. The loan sale allowed our team to focus on serving our clients and proactively monitoring and addressing credit risk brought on by the pandemic. On June 26, 2020, we completed the sale of our PPP loan portfolio to The Loan Source Inc., together with its servicing partner, ACAP SME LLC, and immediately recognized SBA lender fee income of $2.2 million, net of sale and processing costs, which is included in other noninterest income in the consolidated financial statements. The SBA offered a second round of PPP loans through May 31, 2021; however, we did not originate any new PPP loans. We did, however, receive referral fees of approximately $268,000 during the three months ended June 30, 2021 from The Loan Source Inc. for PPP loans they originated to our clients. The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $7.3 million and $5.0 million as of December 31, 2022 and December 31, 2021, respectively. December 31 (dollars in thousands) 2022 2021 Commercial Owner occupied RE $ 612,901 18.7 % 488,965 19.6 % Non-owner occupied RE 862,579 26.3 % 666,833 26.8 % Construction 109,726 3.4 % 64,425 2.6 % Business 468,112 14.3 % 333,049 13.4 % Total commercial loans 2,053,318 62.7 % 1,553,272 62.4 % Consumer Real estate 931,278 28.4 % 694,401 27.9 % Home equity 179,300 5.5 % 154,839 6.2 % Construction 80,415 2.5 % 59,846 2.4 % Other 29,052 0.9 % 27,519 1.1 % Total consumer loans 1,220,045 37.3 % 936,605 37.6 % Total gross loans, net of deferred fees 3,273,363 100.0 % 2,489,877 100.0 % Less – allowance for credit losses (38,639 ) (30,408 ) Total loans, net $ 3,234,724 2,459,469 The composition of gross loans by rate type is as follows: December 31, (dollars in thousands) 2022 2021 Floating rate loans $ 439,287 376,805 Fixed rate loans 2,834,076 2,113,072 $ 3,273,363 2,489,877 At December 31, 2022, approximately $1.05 billion of the Company’s mortgage loans were pledged as collateral for advances from the FHLB, as set forth in Note 10. Credit Quality Indicators Commercial We manage a consistent process for assessing commercial loan credit quality by monitoring our loan grading trends and past due statistics. All loans are subject to individual risk assessment. Our risk categories include Pass, Watch, Special Mention, and Substandard, each of which is defined by banking regulatory agencies. Delinquency statistics are also an important indicator of credit quality in the establishment of our allowance for credit losses. We categorize our loans into risk categories based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades is as follows: ● Pass—These loans range from minimal credit risk to average however still acceptable credit risk. ● Watch—A watch loan exhibits above average risk due to minor weaknesses and warrants closer scrutiny by management. ● Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. ● Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The following table presents loan balances classified by credit quality indicators by year of origination as of December 31, 2022. December 31, 2022 (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Revolving Converted to Term Total Commercial Owner occupied RE Pass $ 169,083 122,654 85,867 66,299 36,718 93,915 - - 574,536 Watch 14,648 479 9,339 3,658 - 6,792 - - 34,916 Special Mention 200 - - - - 2,960 - - 3,160 Substandard - - - - 289 - - - 289 Total Owner occupied RE 183,931 123,133 95,206 69,957 37,007 103,667 - - 612,901 Non-owner occupied RE Pass 281,890 169,599 113,264 59,550 79,722 106,967 604 137 811,733 Watch 1,061 9,491 - 10,683 1,408 11,660 - - 34,303 Special Mention - 202 - 6,087 - 930 - - 7,219 Substandard - 134 - 7,992 327 871 - - 9,324 Total Non-owner occupied RE 282,951 179,426 113,264 84,312 81,457 120,428 604 137 862,579 Construction Pass 48,420 55,129 4,811 247 - - - - 108,607 Watch 1,119 - - - - - - - 1,119 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total Construction 49,539 55,129 4,811 247 - - - - 109,726 Business Pass 136,489 57,804 29,864 21,807 35,249 28,914 136,337 709 447,174 Watch 3,186 2,058 1,318 1,282 179 3,074 3,783 439 15,319 Special Mention 1,137 260 386 210 - 252 115 642 3,002 Substandard 498 - 188 233 315 911 472 - 2,617 Total Business 141,310 60,122 31,756 23,533 35,743 33,151 140,707 1,790 468,112 Total Commercial loans 657,731 417,810 245,037 178,049 154,207 257,246 141,311 1,927 2,053,318 Consumer Real estate Pass 243,589 269,565 189,075 72,499 39,042 76,172 - - 889,942 Watch 6,196 8,256 3,847 2,278 494 3,671 - - 24,742 Special Mention 3,114 1,938 2,644 2,258 955 2,639 - - 13,548 Substandard - 648 227 341 408 1,422 - - 3,046 Total Real estate 252,899 280,407 195,793 77,376 40,899 83,904 - - 931,278 Home equity Pass - - - - - - 165,847 - 165,847 Watch - - - - - - 7,226 - 7,226 Special Mention - - - - - - 4,055 - 4,055 Substandard - - - - - - 2,172 - 2,172 Total Home equity - - - - - - 179,300 - 179,300 Construction Pass 41,138 34,039 4,923 - - - - - 80,100 Watch - - - - - - - - - Special Mention - - - 315 - - - - 315 Substandard - - - - - - - - - Total Construction 41,138 34,039 4,923 315 - - - - 80,415 Other Pass 3,894 3,038 1,702 1,534 341 3,015 14,465 - 27,989 Watch 46 367 15 5 16 175 93 - 717 Special Mention 94 - - 44 75 23 97 - 332 Substandard - - - 5 - - 9 - 14 Total Other 4,034 3,405 1,717 1,588 432 3,213 14,663 - 29,052 Total Consumer loans 298,071 317,851 202,433 79,279 41,331 87,117 193,963 - 1,220,045 Total loans $ 955,802 735,661 447,470 257,328 195,538 344,363 335,274 1,927 3,273,363 The following table presents loan balances classified by credit quality indicators and loan categories as of December 31, 2021. December 31, 2021 Commercial Consumer (dollars in thousands) Owner Non-owner occupied RE Construction Business Real Estate Home Equity Construction Other Total Pass $ 487,422 589,280 64,425 328,371 684,923 148,933 59,846 27,365 2,390,565 Special mention 327 48,310 - 1,530 4,294 2,986 - 129 57,576 Substandard 1,216 29,243 - 3,148 5,184 2,920 - 25 41,736 Total loans $ 488,965 666,833 64,425 333,049 694,401 154,839 59,846 27,519 2,489,877 The following tables present loan balances by payment status. December 31, 2022 (dollars in thousands) Accruing 30-59 days past due Accruing 60-89 days past due Accruing 90 days or more past due Nonaccrual loans Accruing current Total Commercial Owner occupied RE $ - - - - 612,901 612,901 Non-owner occupied RE 119 757 - 247 861,456 862,579 Construction - - - - 109,726 109,726 Business 24 1 - 182 467,905 468,112 Consumer Real estate 330 - - 1,099 929,849 931,278 Home equity 50 - - 1,099 178,151 179,300 Construction - - - - 80,415 80,415 Other 88 - - - 28,964 29,052 Total loans $ 611 758 - 2,627 3,269,367 3,273,363 December 31, 2021 (dollars in thousands) Accruing 30-59 days past due Accruing 60-89 days past due Accruing 90 days or more past due Nonaccrual loans Accruing current Total Commercial Owner occupied RE $ - - - - 488,965 488,965 Non-owner occupied RE - - - 1,069 665,764 666,833 Construction - - - - 64,425 64,425 Business - - - - 333,049 333,049 Consumer Real estate 136 - - 1,750 692,515 694,401 Home equity 417 174 - 2,045 152,203 154,839 Construction - - - - 59,846 59,846 Other 5 - - - 27,514 27,519 Total loans $ 558 174 - 4,864 2,484,281 2,489,877 As of December 31, 2022 and December 31, 2021, loans 30 days or more past due represented 0.11% and 0.09% of the Company’s total loan portfolio, respectively. Commercial loans 30 days or more past due were 0.03% and 0.00% of the Company’s total loan portfolio as of December 31, 2022 and December 31, 2021, respectively. Consumer loans 30 days or more past due were 0.08% and 0.09% of total loans as of December 31, 2022 and December 31, 2021, respectively. Nonperforming assets The following table shows the nonperforming assets and the related percentage of nonperforming assets to total assets and gross loans. Generally, a loan is placed on nonaccrual status when it becomes 90 days past due as to principal or interest, or when we believe, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. A payment of interest on a loan that is classified as nonaccrual is recognized as a reduction in principal when received. December 31, (dollars in thousands) 2022 2021 Nonaccrual loans $ 831 1,912 Nonaccruing TDRs 1,796 2,952 Total nonaccrual loans, including nonaccruing TDRs 2,627 4,864 Other real estate owned - - Total nonperforming assets $ 2,627 4,864 Nonperforming assets as a percentage of: Total assets 0.07 % 0.17 % Gross loans 0.08 % 0.20 % Total loans over 90 days past due $ 402 554 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings 4,503 3,299 The table below summarizes nonaccrual loans by major categories for the periods presented. CECL Incurred loss December 31, 2022 December 31, 2021 Nonaccrual Nonaccrual loans loans Total Total with no with an nonaccrual nonaccrual (dollars in thousands) allowance allowance loans loans Commercial Owner occupied RE $ - - - - Non-owner occupied RE 114 133 247 1,070 Construction - - - - Business - 182 182 - Total commercial 114 315 429 1,070 Consumer Real estate - 1,099 1,099 1,750 Home equity 194 905 1,099 2,044 Construction - - - - Other - - - - Total consumer 194 2,004 2,198 3,794 Total $ 308 2,319 2,627 4,864 Foregone interest income on the nonaccrual loans for the year ended December 31, 2022 was approximately $28,000 and approximately $55,000 for the same period in 2021. The table below summarizes key information for loans individually evaluated for impairment loans under the incurred loss methodology. These loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These loans may have estimated impairment which is included in the allowance for credit losses. December 31, 2021 Recorded investment Impaired loans Impaired loans Unpaid with no related with related Related Principal Impaired allowance for allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses loan losses Commercial Owner occupied RE $ 1,261 1,261 1,261 - - Non-owner occupied RE 2,012 1,070 270 800 171 Construction - - - - - Business 1,104 1,104 - 1,104 452 Total commercial 4,377 3,435 1,531 1,904 623 Consumer Real estate 2,638 2,561 1,743 818 144 Home equity 2,206 2,044 1,989 55 55 Construction - - - - - Other 123 123 - 123 14 Total consumer 4,967 4,728 3,732 996 213 Total $ 9,344 8,163 5,263 2,900 836 The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class under the incurred loss methodology. Year ended December 31, 2021 2020 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 1,387 65 2,423 88 Non-owner occupied RE 3,128 182 4,217 221 Construction 55 - 56 6 Business 2,218 62 2,306 243 Total commercial 6,788 309 9,002 558 Consumer Real estate 3,641 98 3,372 170 Home equity 1,964 85 2,128 5 Construction - - - - Other 129 4 141 79 Total consumer 5,734 187 5,641 254 Total $ 12,522 496 14,643 812 Allowance for Credit Losses The following table summarizes the activity related to the allowance for credit losses for the year ended December 31, 2022 under the CECL methodology. On January 1, 2022, we adopted the Current Expected Credit Loss (CECL) methodology for estimating credit losses, which resulted in an increase of $1.5 million in our allowance for credit losses. The $5.4 million provision for credit losses for the 12 months ended December 31, 2022 was driven primarily by $783.5 million in loan growth for the year. In addition to loan growth, the provision for credit losses was impacted by slightly lower expected loss rates due to historically low charge-offs during 2022, while minor adjustments to two internal qualitative factors increased the qualitative component of the allowance and related provision expense. Twelve months ended December 31, 2022 Commercial Consumer (dollars in thousands) Owner occupied RE Non-owner occupied RE Construction Business Real Estate Home Construction Other Total Balance, beginning of period $ 4,700 10,518 625 4,887 7,083 1,697 578 320 30,408 Adjustment for CECL (313 ) 333 154 1,057 (294 ) 438 130 (5 ) 1,500 Provision for credit losses 1,480 (2,015 ) 513 1,764 2,698 663 185 87 5,375 Loan charge-offs - - - (55 ) - (339 ) - (91 ) (485 ) Loan recoveries - 1,540 - 208 - 92 - 1 1,841 Net loan recoveries (charge-offs) - 1,540 - 153 - (247 ) - (90 ) 1,356 Balance, end of period $ 5,867 10,376 1,292 7,861 9,487 2,551 893 312 38,639 Net recoveries to average loans (annualized) (0.05 %) Allowance for credit losses to gross loans 1.18 % Allowance for credit losses to nonperforming loans 1470.84 % Prior to the adoption of ASC 326 on January 1, 2022, the Company calculated the allowance for loan losses under the incurred loss methodology. The following table summarizes the activity related to the allowance for loan losses in prior periods under this methodology. Twelve months ended December 31, 2021 Commercial Consumer (dollars in thousands) Owner occupied RE Non-owner occupied RE Construction Business Real Estate Home Construction Other Total Balance, beginning of period $ 8,092 12,050 1,154 7,870 10,482 3,248 746 507 44,149 Provision for credit losses (3,486 ) (958 ) (529 ) (2,041 ) (3,417 ) (1,613 ) (168 ) (188 ) (12,400 ) Loan charge-offs - (837 ) - (1,181 ) - (139 ) - (9 ) (2,166 ) Loan recoveries 94 263 - 239 18 201 - 10 825 Net loan recoveries (charge-offs) 94 (574 ) - (942 ) 18 62 - 1 (1,341 ) Balance, end of period $ 4,700 10,518 625 4,887 7,083 1,697 578 320 30,408 Twelve months ended December 31, 2020 Commercial Consumer (dollars in thousands) Owner occupied RE Non-owner occupied RE Construction Business Real Estate Home Construction Other Total Balance, beginning of period $ 2,782 4,305 541 3,716 3,308 1,446 268 276 16,642 Provision for credit losses 5,339 8,583 613 4,993 7,290 2,032 478 272 29,600 Loan charge-offs (94 ) (1,508 ) - (1,309 ) (134 ) (299 ) - (70 ) (3,414 ) Loan recoveries 65 670 - 470 18 69 - 29 1,321 Net loan recoveries (charge-offs) (29 ) (838 ) - (839 ) (116 ) (230 ) - (41 ) (2,093 ) Balance, end of period $ 8,092 12,050 1,154 7,870 10,482 3,248 746 507 44,149 The following tables summarize the activity in the allowance for loan losses by our commercial and consumer portfolio segments under the incurred loss methodology. Year ended December 31, 2021 2020 (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Balance, beginning of period $ 29,166 14,983 44,149 11,372 5,270 16,642 Provision (7,014 ) (5,386 ) (12,400 ) 19,500 10,100 29,600 Loan charge-offs (2,018 ) (148 ) (2,166 ) (2,911 ) (503 ) (3,414 ) Loan recoveries 596 229 825 1,205 116 1,321 Net loan charge-offs (1,422 ) 81 (1,341 ) (1,706 ) (387 ) (2,093 ) Balance, end of period $ 20,730 9,678 30,408 29,166 14,983 44,149 The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology under the incurred loss methodology. December 31, 2021 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 623 213 836 3,435 4,728 8,163 Collectively evaluated 20,107 9,465 29,572 1,549,837 931,877 2,481,714 Total $ 20,730 9,678 30,408 1,553,272 936,605 2,489,877 Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. The Company reviews individually evaluated loans for designation as collateral dependent loans, as well as other loans that management of the Company designates as having higher risk. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. The following table presents an analysis of collateral-dependent loans of the Company as of December 31, 2022. December 31, 2022 Real Business (dollars in thousands) estate assets Other Total Commercial Owner occupied RE $ - - - - Non-owner occupied RE 114 - - 114 Construction - - - - Business 30 - - 30 Total commercial 144 - - 144 Consumer Real estate 207 - - 207 Home equity 194 - - 194 Construction - - - - Other - - - - Total consumer 401 - - 401 Total $ 545 - - 545 Under CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. Allowance for Credit Losses - Unfunded Loan Commitments The allowance for credit losses for unfunded loan commitments was $2.8 million at December 31, 2022 and is separately classified on the balance sheet within other liabilities. Prior to the adoption of CECL, the Company’s reserve for unfunded commitments was not material. The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the twelve months ended December 31, 2022. Twelve months ended (dollars in thousands) December 31, 2022 Balance, beginning of period - Adjustment for adoption of CECL $ 2,000 Provision for credit losses 780 Balance, end of period $ 2,780 Unfunded Loan Commitments 878,324 Reserve for Unfunded Commitments to Unfunded Loan Commitments 0.32 % |
Troubled Debt Restructurings
Troubled Debt Restructurings | 12 Months Ended |
Dec. 31, 2022 | |
Troubled Debt Restructuring [Abstract] | |
Troubled Debt Restructurings | NOTE 5 – Troubled Debt Restructurings At December 31, 2022, our TDRs included 13 loans totaling $6.3 million with a specific allowance for credit losses of $1.2 million. At December 31, 2021 we had 14 loans totaling $6.3 million which we considered as TDRs. The Company considers a loan to be a TDR when the debtor experiences financial difficulties and the Company grants a concession to the debtor that it would not normally consider. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of our workout plan for individual loan relationships, we may restructure loan terms to assist borrowers facing challenges in the current economic environment. There were three loans considered new TDRs during the twelve months ended December 31, 2022. There was one consumer real estate loan with a pre-modification and post-modification balance of $885,000, and there were two commercial business loans with a pre-modification and post-modification balance totaling $1.1 million. For the twelve months ended December 31, 2021, there were two consumer real estate loans with a pre-modification balance of $259,000 and a post-modification balance of $262,000, and there was one consumer home equity loan with a pre-modification and post-modification balance of $181,000 that were renewed and considered TDRs at the time of renewal. As of December 31, 2022 and 2021, there were no loans modified as a TDR for which there was a payment default (60 days past due) within 12 months of the restructuring date. As permitted by the CARES Act, we do not consider loan modifications to borrowers affected by COVID-19 to be TDRs unless the borrower was 30 days or more past due as of December 31, 2019, (ii) the modifications were related to COVID-19, and (iii) the modification occurred between March 1, 2020 and January 1, 2022. Under the CARES Act, the Company granted short-term loan deferrals to 864 loan clients, of which all had returned to normal payments as of December 31, 2021. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 6 – Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Components of property and equipment included in the consolidated balance sheets are as follows: December 31, (dollars in thousands) 2022 2021 Land $ 11,244 10,678 Buildings 54,454 22,150 Leasehold improvements 5,545 6,860 Furniture and equipment 20,422 11,589 Software 409 389 Construction in process 742 29,942 Accumulated depreciation and amortization (17,219 ) (15,882 ) Property and equipment, excluding ROU assets 75,597 65,726 ROU assets 23,586 26,644 Total property and equipment $ 99,183 92,370 Construction in process at December 31, 2022 and 2021 consisted primarily of costs associated with the new bank headquarters building located in Greenville, South Carolina which was officially opened in June 2022. The move into the new building, and subsequent disposal of assets, resulted in a $439,000 loss for the twelve months ended December 31, 2022. In addition in October 2020 we sold two of our office locations in Columbia, South Carolina and recognized a gain of $180,000 in the transaction. The loss and gain are reported in other noninterest income on the consolidated statements of income. Depreciation and amortization expense for the years ended December 31, 2022 and 2021 was $3.7 million and $2.2 million, respectively. Depreciation and amortization are charged to operations utilizing a straight-line method over the estimated useful lives of the assets. The estimated useful lives for the principal items follow: Type of Asset Life in Years Software 3 Furniture and equipment 5 to 7 Leasehold improvements 5 to 15 Buildings 40 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | NOTE 7 – Leases The Company had operating right-of-use assets, included in property and equipment, of $23.6 million and $26.6 million as of December 31, 2022 and 2021, respectively. The Company had lease liabilities, included in other liabilities, of $25.8 million and $28.0 million as of December 31, 2022 and 2021, respectively. We maintain operating leases on land and buildings for various office spaces. The lease agreements have maturity dates ranging from April 2025 to February 2032, some of which include options for multiple five-year extensions. The weighted average remaining life of the lease term for these leases was 6.89 years and 7.92 years as of December 31, 2022 and 2021, respectively. The ROU asset and lease liability are recognized at lease commencement by calculating the present value of lease payments over the lease term. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption and as of the lease commencement date for leases subsequently entered in to. The weighted average discount rate for leases was 2.86% and 2.28% as of December 31, 2022 and 2021, respectively. Total operating lease costs were $2.7 million and $3.0 million for the years ended December 31, 2022 and 2021, respectively. Maturities of lease liabilities as of December 31, 2022 were as follows: Operating (dollars in thousands) Leases 2023 $ 2,016 2024 2,068 2025 2,124 2026 2,177 2027 2,234 Thereafter 22,203 Total undiscounted lease payments 32,822 Discount effect of cash flows 6,995 Total lease liability $ 25,827 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | NOTE 8 – Other Real Estate Owned Other real estate owned is comprised of real estate acquired in settlement of loans and is included in other assets on the balance sheet. At December 31, 2022 and December 31, 2021 there was no commercial property owned. The following summarizes the activity in the real estate acquired in settlement of loans portion of other real estate owned: For the year ended December 31, (dollars in thousands) 2022 2021 Balance, beginning of year $ - 1,169 Additions - 367 Sales - (1,536 ) Write-downs, net - - Balance, end of year $ - - |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | NOTE 9 – Deposits The following is a detail of the deposit accounts: December 31, (dollars in thousands) 2022 2021 Noninterest bearing $ 804,115 768,651 Interest bearing: NOW accounts 318,030 401,788 Money market accounts 1,506,418 1,201,099 Savings 40,673 39,696 Time deposits 464,628 152,592 Total deposits $ 3,133,864 2,563,826 At December 31, 2022 and 2021, time deposits greater than $250,000 were $374.8 million and $84.4 million, respectively. Also, at December 31, 2022, the Company had $236.2 million deposits in brokered deposits, or deposits that were obtained outside the Company’s primary market, while at December 31, 2021 the Company had no brokered deposits. Interest expense on time deposits greater than $250,000 was $3.2 million for the year ended December 31, 2022, $786,000 for the year ended December 31, 2021, and $3.5 million for the year ended December 31, 2020. At December 31, 2022 the scheduled maturities of time deposits are as follows: (dollars in thousands) 2023 $ 420,049 2024 39,786 2025 4,683 2026 110 $ 464,628 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Bank Advances and Repurchase Agreements [Abstract] | |
Federal Home Loan Bank Advances and Other Borrowings | NOTE 10 – Federal Home Loan Bank Advances and Other Borrowings At December 31, 2022, the Company had a $175.0 million FHLB Advance at a variable rate of 4.57%, while at December 31, 2021 the Company had no FHLB Advances outstanding. The FHLB advance was secured with approximately $1.05 billion of mortgage loans and $9.3 million of stock in the FHLB at December 31, 2022 and matures on February 16, 2023. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Debentures [Abstract] | |
Subordinated Debentures | NOTE 11 – Subordinated Debentures On June 26, 2003, Greenville First Statutory Trust I (a non-consolidated subsidiary) issued $6.0 million floating rate trust preferred securities with a maturity of June 26, 2033. At December 31, 2022, the interest rate was 7.82% and is indexed to the 3-month LIBOR rate plus 3.10% and adjusted quarterly. The Company received from the Trust the $6.0 million proceeds from the issuance of the securities and the $186,000 initial proceeds from the capital investment in the Trust, and accordingly has shown the funds due to the Trust as $6.2 million junior subordinated debentures. On December 22, 2005, Greenville First Statutory Trust II (a non-consolidated subsidiary) issued $7.0 million floating rate trust preferred securities with a maturity of December 22, 2035. At December 31, 2022, the interest rate was 6.17% and is indexed to the 3-month LIBOR rate plus 1.44% and adjusted quarterly. The Company received from the Trust the $7.0 million proceeds from the issuance of the securities and the $217,000 initial proceeds from the capital investment in the Trust, and accordingly has shown the funds due to the Trust as $7.2 million junior subordinated debentures. The current regulatory rules allow certain amounts of junior subordinated debentures to be included in the calculation of regulatory capital. However, provisions within the Dodd-Frank Act prohibit institutions that had more than $15 billion in assets on December 31, 2009 from including trust preferred securities as Tier 1 capital beginning in 2013, with one-third phased out over the two years ending in 2015. Financial institutions with less than $15 billion in total assets, such as the Bank, may continue to include their trust preferred securities issued prior to May 19, 2010 in Tier 1 capital, but cannot include in Tier 1 capital trust preferred securities issued after such date. On September 30, 2019, the Company entered into Subordinated Note Purchase Agreements (collectively, the “Purchase Agreement”) with certain qualified institutional buyers and accredited investors (the “Purchasers”) pursuant to which the Company sold and issued $23.0 million in aggregate principal amount of its 4.75% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “Notes”). The Notes were offered and sold by the Company to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and the provisions of Regulation D promulgated thereunder (the “Private Placement”). The Notes have a ten-year term and, from and including the date of issuance to but excluding September 30, 2024, will bear interest at a fixed annual rate of 4.75%, payable semi-annually in arrears, for the first five years of the term. From and including September 30, 2024 to but excluding the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 340.8 basis points, payable quarterly in arrears. As provided in the Notes, the interest rate on the Notes during the applicable floating rate period may be determined based on a rate other than Three-Month Term SOFR. The Notes are redeemable, in whole or in part, on September 30, 2024, on any interest payment date thereafter, and at any time upon the occurrence of certain events. The Purchase Agreement contains certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand. On September 30, 2019, in connection with the sale and issuance of the Notes, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Purchasers. Under the terms of the Registration Rights Agreement, the Company has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act and have substantially the same terms as the Notes (the “Exchange Notes”). Under certain circumstances, if the Company fails to meet its obligations under the Registration Rights Agreement, it would be required to pay additional interest to the holders of the Notes. The Notes were issued under an Indenture, dated September 30, 2019 (the “Indenture”), by and between the Company and UMB Bank, National Association, as trustee. The Notes are not subject to any sinking fund and are not convertible into or, other than with respect to the Exchange Notes, exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. The Notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank junior in right to payment to the Company’s current and future senior indebtedness. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company. |
Unused Lines of Credit
Unused Lines of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Unused Lines of Credit [Abstract] | |
Unused Lines of Credit | NOTE 12 – Unused Lines of Credit At December 31, 2022, the Company had five lines of credit to purchase federal funds that totaled $118.5 million which were unused at December 31, 2022. The lines of credit are available on a one to 14 day basis for general corporate purposes of the Company. The lender has reserved the right to withdraw the line at their option. The Company has an additional line of credit with the FHLB to borrow funds, subject to a pledge of qualified collateral. The Company has collateral that would support approximately $515.8 million in additional borrowings with the FHLB at December 31, 2022. The Company also has an unsecured, interest only line of credit for $15 million with another financial institution which was unused at December 31, 2022. The line bears interest at One Month CME Term SOFR plus 3.50% and maturing on December 20, 2023. The loan agreement contains various financial covenants related to capital, earnings and asset quality. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 13 – Derivative Financial Instruments The Company utilizes derivative financial instruments primarily to hedge its exposure to changes in interest rates. All derivative financial instruments are recognized as either assets or liabilities and measured at fair value. The Company accounts for all of its derivatives as free-standing derivatives and does not designate any of these instruments for hedge accounting. Therefore, the gain or loss resulting from the change in the fair value of the derivative is recognized in the Company’s statement of income during the period of change. The Company enters into commitments to originate residential mortgage loans held for sale, at specified interest rates and within a specified period of time, with clients who have applied for a loan and meet certain credit and underwriting criteria (interest rate lock commitments). These interest rate lock commitments (“IRLCs”) meet the definition of a derivative financial instrument and are reflected in the balance sheet at fair value with changes in fair value recognized in current period earnings. Unrealized gains and losses on the IRLCs are recorded as derivative assets and derivative liabilities, respectively, and are measured based on the value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices and an estimate of the probability that the mortgage loan will fund within the terms of the interest rate lock commitment, net of estimated commission expenses. The Company manages the interest rate and price risk associated with its outstanding IRLCs and mortgage loans held for sale by entering into derivative instruments such as forward sales of MBS. Management expects these derivatives will experience changes in fair value opposite to changes in fair value of the IRLCs and mortgage loans held for sale, thereby reducing earnings volatility. The Company takes into account various factors and strategies in determining the portion of the mortgage pipeline (IRLCs and mortgage loans held for sale) it wants to economically hedge. The following table summarizes the Company’s outstanding financial derivative instruments at December 31, 2022 and December 31, 2021. December 31, 2022 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 6,793 Other assets $ 49 MBS forward sales commitments 5,750 Other assets 27 Total derivative financial instruments $ 12,543 $ 76 December 31, 2021 Fair Value Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 32,478 Other assets $ 425 MBS forward sales commitments 21,000 Other liabilities (41 ) Total derivative financial instruments $ 53,478 $ 384 |
Fair Value Accounting
Fair Value Accounting | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Accounting [Abstract] | |
Fair Value Accounting | NOTE 14 – Fair Value Accounting FASB ASC 820, “Fair Value Measurement and Disclosures Topic,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted market price in active markets Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include certain debt and equity securities that are traded in an active exchange market. Level 2 – Significant other observable inputs Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include fixed income securities and mortgage-backed securities that are held in the Company’s available-for-sale portfolio and valued by a third-party pricing service, as well as certain individually evaluated loans. Level 3 – Significant unobservable inputs Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. These methodologies may result in a significant portion of the fair value being derived from unobservable data. Fair Value of Financial Instruments Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the disclosure requirements, including the Company’s common stock, premises and equipment and other assets and liabilities. The following is a description of valuation methodologies used to estimate fair value for assets recorded at fair value. Fair value approximates carrying value for the following financial instruments due to the short-term nature of the instrument: cash and due from banks, federal funds sold, other investments, federal funds purchased, and securities sold under agreement to repurchase. Investment Securities Securities available for sale are valued on a recurring basis at quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange or U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities and debentures issued by government sponsored entities, municipal bonds and corporate debt securities. In certain cases where there is limited activity or less transparency around inputs to valuations, securities are classified as Level 3 within the valuation hierarchy. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of Other Investments, such as Federal Reserve Bank and FHLB stock, approximates fair value based on their redemption provisions. Mortgage Loans Held for Sale Loans held for sale include mortgage loans which are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. Individually Evaluated Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered individually evaluated and an allowance for credit losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered individually evaluated. Once a loan is identified as individually evaluated, management measures the impairment in accordance with FASB ASC 326. The fair value of individually evaluated loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those individually evaluated loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with FASB ASC 820, “Fair Value Measurement and Disclosures,” individually evaluated loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the individually evaluated loan as nonrecurring Level 2. The Company’s current loan and appraisal policies require the Company to obtain updated appraisals on an “as is” basis at renewal, or in the case of an individually evaluated loan, on an annual basis, either through a new external appraisal or an appraisal evaluation. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the individually evaluated loan as nonrecurring Level 3. The fair value of individually evaluated loans may also be estimated using the present value of expected future cash flows to be realized on the loan, which is also considered a Level 3 valuation. These fair value estimates are subject to fluctuations in assumptions about the amount and timing of expected cash flows as well as the choice of discount rate used in the present value calculation. Other Real Estate Owned OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for credit losses. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of real estate owned activity. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the OREO as nonrecurring Level 3. Derivative Financial Instruments The Company estimates the fair value of IRLCs based on the value of the underlying mortgage loan, quoted MBS prices and an estimate of the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expenses (Level 2). The Company estimates the fair value of forward sales commitments based on quoted MBS prices (Level 2). Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: Corporate bonds $ - 1,883 - 1,883 US treasuries - 871 - 871 US government agencies - 10,617 - 10,617 State and political subdivisions - 18,906 - 18,906 Asset-backed securities - 6,229 - 6,229 Mortgage-backed securities - 54,841 - 54,841 Mortgage loans held for sale - 3,917 - 3,917 Mortgage loan interest rate lock commitments - 49 - 49 MBS forward sales commitments - 27 - 27 Total assets measured at fair value on a recurring basis $ - 97,340 - 97,340 The Company had no liabilities recorded at fair value on a recurring basis as of December 31, 2022. December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: Corporate bonds $ - 2,188 - 2,188 US treasuries - 992 - 992 US government agencies - 14,169 - 14,169 SBA securities - 438 - 438 State and political subdivisions - 25,176 - 25,176 Asset-backed securities - 10,164 - 10,164 Mortgage-backed securities - 67,154 - 67,154 Mortgage loans held for sale - 13,556 - 13,556 Mortgage loan interest rate lock commitments - 425 - 425 Total assets measured at fair value on a recurring basis $ - 134,262 - 134,262 Liabilities MBS forward sales commitments $ - 41 - 41 Total liabilities measured at fair value on a recurring basis $ - 41 - 41 Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company is predominantly an asset based lender with real estate serving as collateral on approximately 85% of loans as of December 31, 2022. Loans which are deemed to be individually evaluated are valued net of the allowance for credit losses, and other real estate owned is valued at the lower of cost or net realizable value of the underlying real estate collateral. Such market values are generally obtained using independent appraisals, which the Company considers to be level 2 inputs. The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis. December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Individually evaluated $ - 429 4,071 4,500 Total assets measured at fair value on a nonrecurring basis $ - 429 4,071 4,500 December 31, 2021 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 5,262 2,065 7,327 Total assets measured at fair value on a nonrecurring basis $ - 5,262 2,065 7,327 The Company had no liabilities carried at fair value or measured at fair value on a nonrecurring basis. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2022 and 2021, the significant unobservable inputs used in the fair value measurements were as follows: Valuation Technique Significant Unobservable Inputs Range of Inputs Individually evaluated loans Appraised Value/ Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal 0-25 % Fair Value of Financial Instruments Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the disclosure requirements, including the Company’s common stock, premises and equipment and other assets and liabilities. The following is a description of valuation methodologies used to estimate fair value for certain other financial instruments. Fair value approximates carrying value for the following financial instruments due to the short-term nature of the instrument: cash and due from banks, federal funds sold, other investments, federal funds purchased, and securities sold under agreement to repurchase. Loans Deposits – FHLB Advances and Other Borrowings – Subordinated debentures The Company has used management’s best estimate of fair value based on the above assumptions. Thus, the fair values presented may not be the amounts that could be realized in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses, which would be incurred in an actual sale or settlement, are not taken into consideration in the fair value presented. The estimated fair values of the Company’s financial instruments at December 31, 2022 and 2021 are as follows: December 31, 2022 (dollars in thousands) Carrying Fair Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 10,833 10,833 - - 10,833 Loans (1) 3,227,455 3,057,891 - - 3,057,891 Financial Liabilities: Deposits 3,133,865 2,717,900 - 2,717,900 - Subordinated debentures 36,214 39,885 - 39,885 - December 31, 2021 (dollars in thousands) Carrying Fair Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,021 4,021 - - 4,021 Loans (1) 2,451,306 2,422,621 - - 2,422,621 Financial Liabilities: Deposits 2,563,826 2,327,055 - 2,327,055 - Subordinated debentures 36,106 33,936 - 33,936 - (1) Carrying amount is net of the allowance for credit losses and individually evaluated loans. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per common share [Abstract] | |
Earnings Per Common Share | NOTE 15 – Earnings Per Common Share The following schedule reconciles the numerators and denominators of the basic and diluted earnings per share computations for the years ended December 31, 2022, 2021 and 2020. Dilutive common shares arise from the potentially dilutive effect of the Company’s stock options and warrants that are outstanding. The assumed conversion of stock options and warrants can create a difference between basic and dilutive net income per common share. At December 31, 2022, 2021 and 2020, options totaling 131,433, 9,000, and 318,825, respectively, were anti-dilutive in the calculation of earnings per share as their exercise price exceeded the fair market value. These options were therefore excluded from the diluted earnings per share calculation. December 31, (dollars in thousands, except share data) 2022 2021 2020 Numerator: Net income $ 29,115 46,711 18,328 Net income available to common shareholders $ 29,115 46,711 18,328 Denominator: Weighted-average common shares outstanding - basic 7,958,294 7,843,692 7,718,615 Common stock equivalents 113,396 145,288 105,599 Weighted-average common shares outstanding - diluted 8,071,690 7,988,980 7,824,214 Earnings per common share: Basic $ 3.66 5.96 2.37 Diluted $ 3.61 5.85 2.34 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 16 – Commitments and Contingencies The Company has entered into a three year employment agreement with its chief executive officer and a two year employment agreement with 14 executive vice presidents. These agreements also include a) an incentive program, b) a stock option plan, c) a one-year non-compete agreement upon termination and a severance payment equal to one year of compensation. The total estimated aggregate salary commitment is approximately $3.7 million. The Company has an agreement with a data processor which expires in 2028 to provide certain item processing, electronic banking, and general ledger processing services. Components of this contract vary based on transaction and account volume, monthly charges and certain termination fees. The Company has commitments with various investment partners under the Small Business Investment Company (“SBIC”) and the Rural Business Investment Company (“RBIC”) programs for which we have committed to make capital contributions from time to time. These commitments totaled approximately $1.7 million at December 31, 2022. The Company may be subject to litigation and claims in the normal course of business. As of December 31, 2022, management believes there is no material litigation pending. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 17 – Income Taxes The components of income tax expense were as follows: For the years ended December 31, (dollars in thousands) 2022 2021 2020 Current income taxes: Federal $ 8,482 10,414 10,244 State 1,273 2,088 841 Total current tax expense 9,755 12,502 11,085 Deferred income tax expense (benefit) (757 ) 1,590 (5,594 ) Income tax expense $ 8,998 14,092 5,491 The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory tax rate: For the years ended December 31, (dollars in thousands) 2022 2021 2020 Tax expense at statutory rate $ 8,004 12,768 5,002 Effect of state income taxes, net of federal benefit 1,006 1,649 664 Exempt income (27 ) (43 ) (27 ) Effect of stock-based compensation 42 (115 ) (30 ) Other (27 ) (167 ) (118 ) Income tax expense $ 8,998 14,092 5,491 The components of the deferred tax assets and liabilities are as follows: December 31, (dollars in thousands) 2022 2021 Deferred tax assets: Allowance for credit losses $ 8,114 6,386 Reserve for unfunded commitments 584 - Unrealized loss on securities available for sale 3,565 197 Net deferred loan fees 1,537 1,054 Deferred compensation 1,762 1,930 Lease liabilities 5,424 5,883 Other 393 260 21,379 15,710 Deferred tax liabilities: Property and equipment 3,561 1,419 Hedging transactions 27 151 Prepaid expenses 316 148 ROU assets 4,953 5,595 8,857 7,313 Net deferred tax asset $ 12,522 8,397 The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 18 – Related Party Transactions Certain directors, executive officers, and companies with which they are affiliated, are clients of and have banking transactions with the Company in the ordinary course of business. These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the lender. A summary of loan transactions with directors and executive officers, including their affiliates is as follows: For the years ended December 31, (dollars in thousands) 2022 2021 Balance, beginning of year $ 8,790 5,790 New loans 21,010 11,629 Less loan payments (12,583 ) (8,629 ) Balance, end of year $ 17,217 8,790 Deposits by executive officers and directors and their related interests at December 31, 2022 and 2021, were $6.5 million and $11.8 million, respectively. The Company has a land lease with a director on the property for a branch office, with monthly payments of $9,120. In addition, the Company periodically enters into various consulting agreements with the director for development, administration and advisory services related to the purchase of property and construction of current and future branch office sites, including the development of the new bank headquarters in Greenville, South Carolina. There were no payments to the director for these services during 2022 and payments totaling $300,000 were made to the director for these services during the year ended December 31, 2021. The Company received rent payments from a company of which a director is a private investor and chairman of the board. Rent received totaled $79,000 and $104,000 for the twelve months ended December 31, 2022 and December 31, 2021, respectively. As part of the lease agreement with the company, $86,000 was paid to the company for a tenant upfit allowance during the twelve months ended December 31, 2022. The Company is of the opinion that the lease payments and consulting fees represent market costs that could have been obtained in similar “arms length” transactions. |
Financial Instruments With Off-
Financial Instruments With Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments With Off-Balance Sheet Risk [Abstract] | |
Financial Instruments With Off-Balance Sheet Risk | NOTE 19 – Financial Instruments With Off-Balance Sheet Risk In the ordinary course of business, and to meet the financing needs of its clients, the Company is a party to various financial instruments with off-balance sheet risk. These financial instruments, which include commitments to extend credit and standby letters of credit, involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheets. The contract amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a client as long as there is no violation of any material condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. At December 31, 2022, unfunded commitments to extend credit were approximately $878.3 million, of which $318.9 million is at fixed rates and $559.4 million is at variable rates. At December 31, 2021, unfunded commitments to extend credit were approximately $618.7 million, of which $205.4 million is at fixed rates and $413.3 million is at variable rates. The Company evaluates each client’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral varies but may include accounts receivable, inventory, property, plant and equipment, and commercial and residential real estate. See Note 4 – Loans and Allowance for Credit Losses for additional information on unfunded commitments. At December 31, 2022 and 2021, there was a $14.3 million and $10.2 million commitment, respectively, under letters of credit. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. Collateral varies but may include accounts receivable, inventory, equipment, marketable securities and property. Since most of the letters of credit are expected to expire without being drawn upon, they do not necessarily represent future cash requirements. The fair value of off balance sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties credit standing. The total fair value of such instruments is not material. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | NOTE 20 – Employee Benefit Plan On January 1, 2000, the Company adopted the Southern First Bancshares, Inc. Profit Sharing and 401(k) Plan for the benefit of all eligible employees. The Company contributes to the Plan annually upon approval by the Board of Directors. Contributions made to the Plan for the years ended December 31, 2022, 2021, and 2020 amounted to $995,000, $905,000, and $881,000, respectively. The Company also provides a nonqualified deferred compensation plan for 22 executive officers in the form of a Supplemental Executive Retirement Plan (“SERP”). The SERP provides retirement income for these officers. As of December 31, 2022 and 2021, the Company had an accrued benefit obligation of $8.4 million and $9.2 million, respectively. The Company had a $284,000 reversal of expenses related to this plan for the twelve months ended December 31, 2022 and incurred expenses related to this plan of $1.0 million and $1.6 million in 2021 and 2020, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 21 – Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and non-employee directors. Compensation cost is measured as the fair value of these awards on their date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used as the fair value of restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option and restricted stock awards. The Company’s stock incentive programs are long-term retention programs intended to attract, retain, and provide incentives for key employees and non-employee directors in the form of incentive and non-qualified stock options and restricted stock. Stock-based compensation expense was recorded as follows: For the years ended December 31, (dollars in thousands) 2022 2021 2020 Stock option expense $ 927 1,148 1,017 Restricted stock grant expense 1,099 499 380 Total stock-based compensation expense $ 2,026 1,647 1,397 Stock Options The Company’s 2010 Incentive Plan, as amended, had available for issuance a total of 566,025 shares (adjusted for the 10% stock dividends in 2013, 2012, and 2011). The Plan expired on March 16, 2020 and no further shares may be issued from the plan. On March 15, 2016, the Company adopted the 2016 Equity Incentive Plan, making available for issuance 400,000 stock options. The Plan expired on March 15, 2021 and no further shares may be issued from the plan. On March 17, 2020, the Company adopted the 2020 Equity Incentive Plan, making available for issuance up to 450,000 stock options. The options may be exercised at an exercise price per share based on the fair market value and determined on the date of grant and expire 10 years from the grant date. As of December 31, 2022, there were 370,824 shares available for grant under the 2020 Equity Incentive Plan. A summary of the status of the stock option plan and changes for the period is presented below: For the years ended December 31, 2022 2021 2020 Weighted Weighted Weighted Weighted Average Weighted Average Weighted Average average Remaining average Remaining average Remaining exercise Contractual exercise Contractual exercise Contractual Shares price Life Shares price Life Shares price Life Outstanding at beginning of year 464,724 $ 33.97 495,195 $ 29.93 541,414 $ 26.65 Granted - - 121,000 40.45 101,700 37.77 Exercised (32,375 ) 27.94 (127,871 ) 23.56 (93,870 ) 14.79 Forfeited or expired (5,125 ) 43.14 (23,600 ) 38.88 (54,049 ) 38.15 Outstanding at end of year 427,224 $ 34.32 5.7 years 464,724 $ 33.97 6.6 years 495,195 $ 29.93 6.4 years Options exercisable at year-end 287,902 $ 32.35 4.8 years 239,340 $ 29.68 5.0 years 287,548 $ 24.93 5.0 years Weighted average fair value of options granted during the year $ - $ 16.40 $ 11.37 Shares available for grant 370,824 422,550 136,339 The aggregate intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year and the exercise price, multiplied by the number of in-the-money options) of 427,224 and 464,724 stock options outstanding at December 31, 2022 and 2021 was $4.9 million and $13.3 million, respectively. The aggregate intrinsic value of 287,902 and 239,340 stock options exercisable at December 31, 2022 and 2021 was $3.9 million and $7.9 million, respectively. The fair value of the option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were used for grants: 2022 2021 2020 Dividend yield n/a - - Expected life n/a 7 years 7 years Expected volatility n/a 38.48 % 25.51 % Risk-free interest rate n/a 0.74 % 1.29 % At December 31, 2022, there was $1.1 million of total unrecognized compensation cost related to nonvested stock option grants. The cost is expected to be recognized over a weighted-average period of 1.9 years. The fair value of stock option grants that vested during 2022, 2021, and 2020 was $1.1 million, $1.1 million and $1.2 million, respectively. Restricted Stock Grants On May 17, 2016, the Company adopted the 2016 Equity Incentive Plan which included a provision for the issuance of 50,000 shares of common stock to be issuable as restricted stock grants. The Plan expired on March 17, 2021 and no further shares may be issued from the plan. On May 12, 2020, the Company adopted the 2020 Equity Incentive Plan which included a provision for the issuance of 450,000 shares of common stock to be issuable as either stock options or restricted stock grants. As of December 31, 2022, there were 370,824 shares available for grant under the 2020 Equity Incentive Plan. Shares of restricted stock granted to employees under the stock plans are subject to restrictions as to continuous employment for a specified time period following the date of grant. During this period, the holder is entitled to full voting rights and dividends. A summary of the status of the Company’s nonvested restricted stock and changes for the years ended December 31, 2022, 2021, and 2020 is as follows: Table of Contents December 31, 2022 2021 2020 Restricted Weighted Restricted Weighted Restricted Weighted Nonvested at beginning of year 41,699 $ 44.71 26,099 $ 38.05 32,825 $ 34.78 Granted 53,376 56.25 26,450 48.56 13,200 39.87 Vested (14,213 ) 43.26 (9,600 ) 38.03 (14,051 ) 32.06 Forfeited (525 ) 61.14 (1,250 ) 38.56 (5,875 ) 37.74 Nonvested at end of year 80,337 $ 52.53 41,699 $ 44.71 26,099 $ 38.05 At December 31, 2022, there was $3.3 million of total unrecognized compensation cost related to nonvested restricted stock grants. The cost is expected to be recognized over a weighted-average period of 3.1 years. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2022 | |
Dividends Disclosure [Abstract] | |
Dividends | NOTE 22 – Dividends The ability of the Company to pay cash dividends is dependent upon receiving cash in the form of dividends from the Bank. The dividends that may be paid by the Bank to the Company are subject to legal limitations and regulatory capital requirements. Also, the payment of cash dividends on the Company’s common stock by the Company in the future will be subject to certain other legal and regulatory limitations (including the requirement that the Company’s capital be maintained at certain minimum levels) and will be subject to ongoing review by banking regulators. The Federal Reserve has issued a policy statement regarding the payment of dividends by bank holding companies. In general, the Federal Reserve’s policies provide that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the bank holding company appears consistent with the organization’s capital needs, asset quality and overall financial condition. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Regulatory Matters | NOTE 23 – Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. The capital rules require banks and bank holding companies to maintain a minimum total risked-based capital ratio of at least 8%, a total Tier 1 capital ratio of at least 6%, a minimum common equity Tier 1 capital ratio of at least 4.5%, and a leverage ratio of at least 4%. Bank holding companies and banks are also required to hold a capital conservation buffer of common equity Tier 1 capital of 2.5% to avoid limitations on capital distributions and discretionary executive compensation payments. The capital conservation buffer was phased in incrementally over time, becoming fully effective on January 1, 2019, and consists of an additional amount of common equity equal to 2.5% of risk-weighted assets. To be considered “well-capitalized” for purposes of certain rules and prompt corrective action requirements, the Bank must maintain a minimum total risked-based capital ratio of at least 10%, a total Tier 1 capital ratio of at least 8%, a common equity Tier 1 capital ratio of at least 6.5%, and a leverage ratio of at least 5%. As of December 31, 2022, our capital ratios exceed these ratios and we remain “well capitalized.” The following table summarizes the capital amounts and ratios of the Bank and the Company and the regulatory minimum requirements at December 31, 2022 and 2021. To be well capitalized For capital under prompt adequacy purposes corrective action Actual minimum provisions minimum (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 The Bank Total Capital (to risk weighted assets) $ 366,988 12.45 % $ 235,892 8.00 % $ 294,865 10.00 % Tier 1 Capital (to risk weighted assets) 330,108 11.20 % 176,919 6.00 % 235,892 8.00 % Common Equity Tier 1 Capital (to risk weighted assets) 330,108 11.20 % 132,689 4.50 % 191,662 6.50 % Tier 1 Capital (to average assets) 330,108 9.43 % 140,040 4.00 % 175,050 5.00 % The Company Total Capital (to risk weighted assets) 380,802 12.91 % 235,892 8.00 % n/a n/a Tier 1 Capital (to risk weighted assets) 320,922 10.88 % 176,919 6.00 % n/a n/a Common Equity Tier 1 Capital (to risk weighted assets) 307,922 10.44 % 132,689 4.50 % n/a n/a Tier 1 Capital (to average assets) 320,922 9.17 % 140,057 4.00 % n/a n/a To be well capitalized For capital under prompt adequacy purposes corrective action Actual minimum provisions minimum (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 The Bank Total Capital (to risk weighted assets) $ 331,052 14.36 % $ 184,418 8.00 % $ 230,522 10.00 % Tier 1 Capital (to risk weighted assets) 302,217 13.11 % 138,313 6.00 % 184,418 8.00 % Common Equity Tier 1 Capital (to risk weighted assets) 302,217 13.11 % 103,735 4.50 % 149,839 6.50 % Tier 1 Capital (to average assets) 302,217 10.55 % 114,537 4.00 % 143,172 5.00 % The Company (1) Total Capital (to risk weighted assets) 343,476 14.90 % 184,418 8.00 % n/a n/a Tier 1 Capital (to risk weighted assets) 291,641 12.65 % 138,313 6.00 % n/a n/a Common Equity Tier 1 Capital (to risk weighted assets) 278,641 12.09 % 103,735 4.50 % n/a n/a Tier 1 Capital (to average assets) 291,641 10.18 % 114,555 4.00 % n/a n/a (1) Under the Federal Reserve’s Small Bank Holding Company Policy Statement, in 2021, the Company was not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level. Although the minimum regulatory capital requirements were not applicable to the Company in 2021, we calculated these ratios for our own planning and monitoring purposes. |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Information | NOTE 24 – Parent Company Financial Information Following is condensed financial information of Southern First Bancshares, Inc. (parent company only): Condensed Balance Sheets December 31, (dollars in thousands) 2022 2021 Assets Cash and cash equivalents $ 13,882 12,379 Investment in subsidiaries 317,102 301,880 Other assets 21 21 Total assets $ 331,005 314,280 Liabilities and Shareholders’ Equity Accounts payable and accrued expenses $ 279 274 Subordinated debentures 36,214 36,105 Shareholders’ equity 294,512 277,901 Total liabilities and shareholders’ equity $ 331,005 314,280 Condensed Statements of Income For the years ended December 31, (dollars in thousands) 2022 2021 2020 Revenues Interest income $ 20 17 17 Total revenue 20 17 17 Expenses Interest expense 1,730 1,523 1,708 Other expenses 240 285 283 Total expenses 1,970 1,808 1,991 Income tax benefit 409 376 415 Loss before equity in undistributed net income of subsidiaries (1,541 ) (1,415 ) (1,559 ) Equity in undistributed net income of subsidiaries 30,656 48,126 19,887 Net income $ 29,115 46,711 18,328 Condensed Statements of Cash Flows For the years ended December 31, (dollars in thousands) 2022 2021 2020 Operating activities Net income $ 29,115 46,711 18,328 Adjustments to reconcile net income to cash provided by (used for) operating activities Equity in undistributed net income of subsidiaries (30,656 ) (48,126 ) (19,887 ) Compensation expense related to stock options and restricted stock grants 2,026 1,647 1,397 (Increase) decrease in other assets - 8 (23 ) Increase (decrease) in accounts payable and accrued expenses 113 108 63 Net cash provided by (used for) operating activities 598 348 (122 ) Investing activities Investment in subsidiaries, net - - - Net cash used for investing activities - - - Financing activities Issuance of common stock - - - Proceeds from the exercise of stock options and warrants 905 3,012 1,388 Net cash provided by financing activities 905 3,012 1,388 Net increase in cash and cash equivalents 1,503 3,360 1,266 Cash and cash equivalents, beginning of year 12,379 9,019 7,753 Cash and cash equivalents, end of year $ 13,882 12,379 9,019 |
Selected Condensed Quarterly Fi
Selected Condensed Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Condensed Quarterly Financial Data (Unaudited) | NOTE 25 – Selected Condensed Quarterly Financial Data (Unaudited) 2022 For the quarters ended (dollars in thousands, except share data) March 31 June 30 September 30 December 31 Interest income $ 24,464 27,238 30,934 35,026 Interest expense 1,300 2,354 5,480 10,907 Net interest income 23,164 24,884 25,454 24,119 Provision for credit losses 1,105 1,775 950 2,325 Noninterest income 2,927 2,265 2,680 1,707 Noninterest expenses 14,685 15,788 16,046 16,413 Income before income tax expense 10,301 9,586 11,138 7,088 Income tax expense 2,331 2,346 2,725 1,596 Net income available to common shareholders $ 7,970 7,240 8,413 5,492 Earnings per common share Basic $ 1.00 0.91 1.06 0.69 Diluted $ 0.98 0.90 1.04 0.68 Weighted average common shares outstanding Basic 7,932 7,958 7,972 7,971 Diluted 8,096 8,055 8,065 8,072 2021 For the quarters ended March 31 June 30 September 30 December 31 Interest income $ 22,813 22,731 23,486 24,137 Interest expense 1,540 1,301 1,314 1,280 Net interest income 21,273 21,430 22,172 22,857 Provision for credit losses (300 ) (1,900 ) (6,000 ) (4,200 ) Noninterest income 5,904 3,622 4,239 3,336 Noninterest expenses 14,162 13,495 14,039 14,734 Income before income tax expense 13,315 13,457 18,372 15,659 Income tax expense 2,949 3,134 4,355 3,654 Net income available to common shareholders $ 10,366 10,323 14,017 12,005 Earnings per common share Basic $ 1.33 1.32 1.78 1.52 Diluted $ 1.31 1.29 1.75 1.49 Weighted average common shares outstanding Basic 7,775 7,848 7,874 7,877 Diluted 7,909 7,988 8,001 8,057 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Southern First Bank. In consolidation, all significant intercompany transactions have been eliminated. The accounting and reporting policies conform to accounting principles generally accepted in the United States of America. In accordance with guidance issued by the Financial Accounting Standards Board (“FASB”), the operations of the Trusts have not been consolidated in these financial statements. |
Business Segments | Business Segments The Company, through the Bank, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, and Georgia. These services include demand, time and savings deposits; lending services; ATM processing and mortgage banking services. While the Company’s management periodically reviews limited production information for these revenue streams, that information is not complete as it does not include a full allocation of revenue, costs and capital from key corporate functions. Management will continue to evaluate these lines of business for separate reporting as facts and circumstances change. Accordingly, the Company’s various banking operations are not considered by management to constitute more than one reportable operating segment. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, derivatives, real estate acquired in settlement of loans, fair value of financial instruments, evaluating investment securities for credit impairment and valuation of deferred tax assets. |
Risks and Uncertainties | Risks and Uncertainties In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different bases, than its interest-earning assets. Credit risk is the risk of default within the Company’s loan portfolio that results from borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company. The Company is subject to the regulations of various governmental agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to changes with respect to valuation of assets, amount of required loan loss allowance and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. The Bank makes loans to individuals and businesses in the Upstate, Midlands, and Lowcountry regions of South Carolina as well as the Triangle, Triad and Charlotte regions of North Carolina and Atlanta, Georgia for various personal and commercial purposes. The Bank’s loan portfolio has a concentration of real estate loans. As of December 31, 2022 and 2021, real estate loans represented 84.8% and 85.5%, respectively, of total loans. However, borrowers’ ability to repay their loans is not dependent upon any specific economic sector. As of December 31, 2022, the Company’s and the Bank’s capital ratios were in excess of all regulatory requirements. While management believes that we have sufficient capital to withstand an extended economic recession, our reported and regulatory capital ratios could be adversely impacted by further credit losses. The Company maintains access to multiple sources of liquidity, including a $15.0 million holding company line of credit with another bank which could be used to support capital ratios at the subsidiary bank. As of December 31, 2022, the $15.0 million line was unused. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether there have been any subsequent events since the balance sheet date and determined that no subsequent events occurred requiring accrual or disclosure. |
Reclassifications | Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders’ equity or net income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest bearing deposits and federal funds sold. Cash and cash equivalents have original maturities of three months or less, and federal funds sold are generally purchased and sold for one-day periods. Accordingly, the carrying value of these instruments is deemed to be a reasonable estimate of fair value. At December 31, 2022 and 2021, included in cash and cash equivalents was $5.8 million and $5.2 million, respectively, on deposit with the Federal Reserve Bank. |
Investment Securities | Investment Securities We classify our investment securities as held to maturity securities, trading securities and available for sale securities as applicable. Investment securities are designated as held to maturity if we have the intent and the ability to hold the securities to maturity. Held to maturity securities are carried at amortized cost, adjusted for the amortization of any related premiums or the accretion of any related discounts into interest income using a methodology which approximates a level yield of interest over the estimated remaining period until maturity. Investment securities that are purchased and held principally for the purpose of selling in the near term are reported as trading securities. Trading securities are carried at fair value with unrealized holding gains and losses included in earnings. We classify investment securities as available for sale when at the time of purchase we determine that such securities may be sold at a future date or if we do not have the intent or ability to hold such securities to maturity. Securities designated as available for sale are recorded at fair value. Changes in the fair value of available for sale debt securities are included in shareholders’ equity as unrealized gains or losses, net of the related tax effect. Realized gains or losses on available for sale securities are computed on the specific identification basis. |
Other Investments | Other Investments Other investments include stock acquired for membership and regulatory purposes, such as Federal Home Loan Bank of Atlanta (“FHLB”) stock, investments in unconsolidated subsidiaries and other nonmarketable securities. FHLB stock is generally pledged against any borrowings from the FHLB and cash dividends on our FHLB stock are recorded in investment income. Other nonmarketable securities consist of investments in funds related to the Small Business Investment Company (“SBIC”) and Rural Business Investment Company (“RBIC”) programs. No ready market exists for these stocks and they have no quoted market value. As a result, these securities are carried at cost and are periodically evaluated for impairment. |
Loans | Loans Loans are stated at the principal balance outstanding. Unamortized net loan fees and the allowance for possible credit losses are deducted from total loans on the balance sheets. Interest income is recognized over the term of the loan based on the principal amount outstanding. The net of loan origination fees received and direct costs incurred in the origination of loans is deferred and amortized to interest income over the contractual life of the loans adjusted for actual principal prepayments using a method approximating the interest method. |
Nonaccrual and Past Due Loans | Nonaccrual and Past Due Loans Loans are generally placed on nonaccrual status when principal or interest becomes 90 days past due, or when payment in full is not anticipated. When a loan is placed on nonaccrual status, interest accrued but not received is generally reversed against interest income. Cash receipts on nonaccrual loans are not recorded as interest income, but are used to reduce the loan’s principal balance. A nonaccrual loan is generally returned to accrual status and accrual of interest is resumed when payments have been made according to the terms and conditions of the loan for a continuous six month period. Our loans are considered past due when contractually required principal or interest payments have not been made on the due dates. |
Nonperforming Assets | Nonperforming Assets Nonperforming assets include real estate acquired through foreclosure or deed taken in lieu of foreclosure, loans on nonaccrual status and loans past due 90 days or more and still accruing interest. Loans are placed on nonaccrual status when, in the opinion of management, the collection of additional interest is uncertain. Thereafter no interest is taken into income until such time as the borrower demonstrates the ability to pay both principal and interest. |
Individually Evaluated Loans | Individually Evaluated Loans Our individually evaluated loans include loans on nonaccrual status and loans modified in a troubled debt restructuring (“TDR”), whether on accrual or nonaccrual status. For loans that are classified as individually evaluated, an allowance is established when the fair value (discounted cash flows, collateral value, or observable market price) of the individually evaluated loan less costs to sell, are lower than the carrying value of that loan. A loan is considered individually evaluated when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due, among other factors. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as individually evaluated. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including, without limitation, the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and consumer loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. |
Loan Charge-off Policy | Loan Charge-off Policy For commercial loans, we generally fully charge off or charge collateralized loans down to net realizable value when management determines the loan to be uncollectible; repayment is deemed to be projected beyond reasonable time frames; the loan has been classified as a loss by either our internal loan review process or our banking regulatory agencies; the client has filed bankruptcy and the loss becomes evident owing to a lack of assets; or the loan is 120 days past due unless both well-secured and in the process of collection. For consumer loans, we generally charge down to net realizable value when the loan is 180 days past due. |
Troubled Debt Restructuring (TDRs) | Troubled Debt Restructuring (TDRs) The Company considers a loan to be a TDR when the debtor experiences financial difficulties and the Company provides concessions such that we will not collect all principal and interest in accordance with the original terms of the loan agreement. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of our workout plan for individual loan relationships, we may restructure loan terms to assist borrowers facing challenges in the current economic environment. As permitted by the CARES Act, we do not consider loan modifications to borrowers affected by COVID-19 to be TDRs unless the borrower was 30 days or more past due as of December 31, 2019, (ii) the modifications were related to COVID-19, and (iii) the modification occurred between March 1, 2020 and January 1, 2022. Our policy with respect to accrual of interest on loans restructured in a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms; continued accrual of interest at the restructured interest rate is likely. If a borrower was materially delinquent on payments prior to the restructuring, but shows capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual going forward. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. We will continue to closely monitor these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured note terms. If, after previously being classified as a TDR, a loan is restructured a second time and the borrower continues to experience financial difficulties, then that loan is automatically placed on nonaccrual status. Our policy with respect to nonperforming loans requires the borrower to make a minimum of six consecutive payments of principal and interest in accordance with the loan terms before that loan can be placed back on accrual status. Further, the borrower must show capacity to continue performing into the future prior to restoration of accrual status. In addition, our policy, in accordance with supervisory guidance, also provides for a loan to be removed from TDR status if the loan is modified or renewed at terms consistent with current market rates and the loan has been performing under modified terms for an extended period of time or under certain circumstances. In the determination of the allowance for credit losses, management considers TDRs on commercial and consumer loans and subsequent defaults in these restructurings by measuring impairment, on a loan by loan basis, based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. |
Other Real Estate Owned | Other Real Estate Owned Real estate acquired through foreclosure is initially recorded at the lower of cost or estimated fair value less selling costs. Subsequent to the date of acquisition, it is carried at the lower of cost or fair value, adjusted for net selling costs. Fair values of real estate owned are reviewed regularly and write-downs are recorded when it is determined that the carrying value of real estate exceeds the fair value less estimated costs to sell. Costs relating to the development and improvement of such property are capitalized, whereas those costs relating to holding the property are expensed. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Major repairs are charged to operations, while major improvements are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Upon retirement, sale, or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts, and gain or loss is included in income from operations. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. |
Operating Leases | Operating Leases Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)” which requires for all operating leases the recognition of a right-of-use (“ROU”) asset and a corresponding lease liability, in the balance sheet. Upon adoption, the Company elected practical expedients including existing leases retaining their classification as operating leases and combining lease and non-lease components. The Company also elected to not recognize right-of-use assets and lease liabilities arising from short-term leases. |
Bank Owned Life Insurance Policies | Bank Owned Life Insurance Policies Bank owned life insurance policies represent the cash value of policies on certain officers of the Company. |
Comprehensive Income | Comprehensive Income Comprehensive income (loss) consists of net income and net unrealized gains (losses) on securities and is presented in the statements of shareholders’ equity and comprehensive income. The statement requires only additional disclosures in the consolidated financial statements; it does not affect our results of operations. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in Topic 606 that affect the determination of the amount and timing of revenue from contracts with customers. |
Income Taxes | Income Taxes The financial statements have been prepared on the accrual basis. When income and expenses are recognized in different periods for financial reporting purposes versus for the purposes of computing income taxes currently payable, deferred taxes are provided on such temporary differences. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The Company believes that its income tax filing positions taken or expected to be taken on its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded. The Company’s federal and state income tax returns are open and subject to examination from the 2019 tax return year and forward. |
Stock-Based Compensation | Stock-Based Compensation The Company has a stock-based employee compensation plan. Compensation cost is recognized for all stock options granted and for any outstanding unvested awards as if the fair value method had been applied to those awards as of the date of grant. |
Adoption of New Accounting Standard | Adoption of New Accounting Standard In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU introduced a new credit loss methodology, the Current Expected Credit Loss (“CECL”) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. Since its original issuance in 2016, the FASB has issued several updates to the original ASU. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities, and other receivables at the time the financial asset is originated or acquired. It also applies to off-balance sheet credit exposures, such as unfunded commitments to extend credit. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. For available-for-sale securities where fair value is less than cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. On January 1, 2022, the Company adopted the guidance prospectively with a cumulative adjustment to retained earnings. Results for reporting periods beginning after January 1, 2022 are presented under CECL while prior period amounts continue to be reported in accordance with the previously applicable incurred loss accounting methodology. The transition adjustment for the adoption of CECL included an increase in the allowance for credit losses on loans of $1.5 million and an increase in the reserve for unfunded loan commitments of $2.0 million, which is recorded within other liabilities. The adoption of CECL had an insignificant impact on the Company’s investment securities portfolio. The Company recorded a net decrease to retained earnings of $2.8 million as of January 1, 2022 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Federal banking regulatory agencies provided optional relief to delay the adverse regulatory capital impact of CECL at adoption. The Company did not elect to use this optional relief. |
Significant Accounting Policy Changes | Significant Accounting Policy Changes Upon adoption of Topic 326, the Company revised the accounting policy for the Allowance for Credit Losses as detailed below. |
Allowance for Credit Losses – Investment Securities | Allowance for Credit Losses – Investment Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income with the establishment of an allowance under CECL compared to a direct write down of the security under Incurred Loss. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether any decline in fair value is due to credit loss factors. In making this assessment, management considers any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses under CECL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At December 31, 2022, there was no allowance for credit losses related to the available-for-sale portfolio. In addition, the Company had no held to maturity securities at December 31, 2022. Accrued interest receivable on available for sale debt securities totaled $382,000 at December 31, 2022 and was excluded from the estimate of credit losses. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans Under the current expected credit loss model, the allowance for credit losses on loans is a valuation allowance estimated at each balance sheet date in accordance with GAAP that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Management assesses the adequacy of the allowance on a quarterly basis. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management’s evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers’ ability to repay a loan, the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. Management believes the level of the allowance for credit losses is adequate to absorb all expected future losses inherent in the loan portfolio at the balance sheet date. The allowance is increased through provision for credit losses and decreased by charge-offs, net of recoveries of amounts previously charged-off. The allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Commercial loans ● Owner occupied real estate - Owner occupied commercial mortgages consist of loans to purchase or re-finance owner occupied nonresidential properties. This includes office buildings, other commercial facilities, and farmland. Commercial mortgages secured by owner occupied properties are primarily dependent on the ability of borrowers to achieve business results consistent with those projected at loan origination. While these loans and leases are collateralized by real property in an effort to mitigate risk, it is possible the liquidation of collateral will not fully satisfy the obligation. ● Non-owner occupied real estate - Non-owner occupied commercial mortgages consist of loans to purchase or refinance investment nonresidential properties. This includes office buildings and other facilities rented or leased to unrelated parties, as well as farmland and multifamily properties. The primary risk associated with income producing commercial mortgage loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. While these loans are collateralized by real property in an effort to mitigate risk, it is possible the liquidation of collateral will not fully satisfy the obligation. ● Construction - Construction loans consist of loans to finance land for development of commercial or residential real property and construction of multifamily apartments or other commercial properties. These loans are highly dependent on the supply and demand for commercial real estate as well as the demand for newly constructed residential homes and lots acquired for development. Deterioration in demand could result in decreased collateral values, which could make repayments of outstanding loans difficult for customers. ● Commercial business - Commercial business loans consist of loans or lines of credit to finance accounts receivable, inventory or other general business needs, business credit cards, and lease financing agreements for equipment, vehicles, or other assets. The primary risk associated with commercial and industrial and lease financing loans is the ability of borrowers to achieve business results consistent with those projected at origination. Failure to achieve these projections presents risk the borrower will be unable to service the debt consistent with the contractual terms of the loan. Consumer loans ● Real estate - Residential mortgages consist of loans to purchase or refinance the borrower’s primary dwelling, second residence or vacation home and are often secured by 1-4 family residential property. Significant and rapid declines in real estate values can result in borrowers having debt levels in excess of the current market value of the collateral. ● Home equity – Home equity loans consist of home equity lines of credit and other lines of credit secured by first or second liens on the borrower’s primary residence. These loans are secured by both senior and junior liens on the residential real estate and are particularly susceptible to declining collateral values. This risk is elevated for loans secured by junior lines as a substantial decline in value could render the junior lien position effectively unsecured. ● Construction - Construction loans consist of loans to construct a borrower’s primary or secondary residence or vacant land upon which the owner intends to construct a dwelling at a future date. These loans are typically secured by undeveloped or partially developed land in anticipation of completing construction of a 1-4 family residential property. There is risk these construction and development projects can experience delays and cost overruns exceeding the borrower’s financial ability to complete the project. Such cost overruns can result in foreclosure of partially completed and unmarketable collateral. ● Other - Consumer loans consist of loans to finance unsecured home improvements, student loans, automobiles and revolving lines of credit that can be secured or unsecured. The value of the underlying collateral within this class is at risk of potential rapid depreciation which could result in unpaid balances in excess of the collateral. For all loan pools, the Company uses a lifetime probability of default and loss given default modeling approach to estimate the allowance for credit losses on loans. This method uses historical correlations between default experience and the age of loans to forecast defaults and losses, assuming that a loan in a pool shares similar risk characteristics such as loan product type, risk rating and loan age, and demonstrates similar default characteristics as other loans in that pool, as the loan progresses through its lifecycle. The Company calculates lifetime probability of default and loss given default rates based on historical loss experience, which is used to calculate expected losses based on the pool’s loss rate and the age of loans in the pool. Management believes that the Company’s historical loss experience provides the best basis for its assessment of expected credit losses to determine the allowance for credit losses. The Company uses its own internal data to measure historical credit loss experience within the pools with similar risk characteristics over an economic cycle. The probability of default and loss given default method also includes assumptions of observed migration over the lifetime of the underlying loan data. Management also considers further adjustments to historical loss information for current conditions and reasonable and supportable forecasts that differ from the conditions that exist for the period over which historical information is evaluated as well as other changes in qualitative factors not inherently considered in the quantitative analyses. The Company generally utilizes a four-quarter forecast period in evaluating the appropriateness of the reasonable and supportable forecast scenarios which are incorporated through qualitative adjustments. There is immediate reversion to historical loss rates. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan pools. These adjustments are based upon quarterly trend assessments in certain economic factors such as labor, inflation, consumer sentiment and real disposable income, as well as associate retention and turnover, portfolio concentrations, and growth characteristics. The qualitative analysis increases or decreases the allowance allocation for each loan pool based on the assessment of factors described above. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated loan pools. Individual loan evaluations are generally performed for individually evaluated loans, which includes nonaccrual loans and loans modified in a troubled debt restructuring (“TDR”). Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. The Company has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of collateral, which considers selling costs in the event sale of the collateral is expected. Loans for which terms have been modified in a TDR are evaluated using these same individual evaluation methods. In the event the discounted cash flow method is used for a TDR, the original interest rate is used to discount expected cash flows. While the Company’s policies and procedures used to estimate the allowance for credit losses, as well as the resultant provision for credit losses charged to income, are considered adequate by management and are reviewed periodically by regulators, model validators and internal audit, they are necessarily approximate and imprecise. There are factors beyond the Company’s control, such as changes in projected economic conditions, real estate markets or particular industry conditions which may materially impact asset quality and the adequacy of the allowance for credit losses and thus the resulting provision for credit losses. |
Accrued Interest Receivable | Accrued Interest Receivable Accrued interest receivable related to loans totaled $8.9 million at December 31, 2022 and was reported in accrued interest receivable on the consolidated balance sheets. The Company elected not to measure an allowance for credit losses for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on nonaccrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectable interest. |
Unfunded Commitments | Unfunded Commitments Effective with the adoption of CECL, the Company estimates expected credit losses on commitments to extend credit over the contractual period in which the Company is exposed to credit risk on the underlying commitments, unless the obligation is unconditionally cancelable by the Company. The allowance for off-balance sheet credit exposures, which is reflected within other liabilities on the consolidated balance sheet, is adjusted for as an increase or decrease to the provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund. The Company’s CECL allowances will fluctuate over time due to macroeconomic conditions and forecasts as well as the size and composition of the loan portfolios. |
Newly Issued, But Not Yet Effective Accounting Standards | Newly Issued, But Not Yet Effective Accounting Standards In March 2022, the FASB amended the Receivables–Troubled Debt Restructuring by Creditors subtopic and Financial Instruments–Credit Losses subtopic to the Accounting Standards Codification. The amendments eliminate the accounting guidance for TDRs by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, for public business entities, the amendments require disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20. The amendments are effective as of January 1, 2023 and will not have a material effect on the Company’s financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized costs and fair value of investment securities | December 31, 2022 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale Corporate bonds $ 2,172 - 289 1,883 US treasuries 999 - 128 871 US government agencies 13,007 - 2,390 10,617 State and political subdivisions 22,910 - 4,004 18,906 Asset-backed securities 6,435 - 206 6,229 Mortgage-backed securities FHLMC 24,086 - 3,745 20,341 FNMA 35,141 - 5,520 29,621 GNMA 5,573 - 694 4,879 Total mortgage-backed securities 64,800 - 9,959 54,841 Total $ 110,323 - 16,976 93,347 December 31, 2021 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale Corporate bonds $ 2,198 - 10 2,188 US treasuries 999 - 7 992 US government agencies 14,504 1 336 14,169 SBA securities 429 9 - 438 State and political subdivisions 24,887 549 260 25,176 Asset-backed securities 10,136 45 17 10,164 Mortgage-backed securities FHLMC 23,057 102 494 22,665 FNMA 40,924 235 660 40,499 GNMA 4,084 3 97 3,990 Total mortgage-backed securities 68,065 340 1,251 67,154 Total $ 121,218 944 1,881 120,281 |
Schedule of amortized costs and fair values of investment securities available for sale by contractual maturity | December 31, 2022 December 31, 2021 (dollars in thousands) Amortized Cost Fair Amortized Fair Available for sale Due within one year $ - - $ 384 387 Due after one through five years 9,398 8,277 7,429 7,363 Due after five through ten years 24,436 20,043 27,298 26,953 Due after ten years 76,489 65,027 86,107 85,578 $ 110,323 93,347 $ 121,218 120,281 |
Schedule of gross unrealized losses on investment securities and fair market value of related securities | December 31, 2022 Less than 12 months 12 months or longer Total (dollars in thousands) # Fair Unrealized # Fair Unrealized # Fair Unrealized As of December 31, 2022 Available for sale Corporate bonds 0 $ - $ - 1 $ 1,883 $ 289 1 $ 1,883 $ 289 US treasuries 0 - - 1 871 128 1 871 128 US government agencies 0 - - 10 10,617 2,390 10 10,617 2,390 State and political subdivisions 10 5,101 763 22 13,805 3,241 32 18,906 4,004 Asset-backed 5 4,291 135 3 1,938 71 8 6,229 206 Mortgage-backed FHLMC 4 3,712 155 17 16,629 3,590 21 20,341 3,745 FNMA 9 2,208 201 28 27,413 5,319 37 29,621 5,520 GNMA 1 103 7 6 4,776 687 7 4,879 694 29 $ 15,415 $ 1,261 88 $ 77,932 $ 15,715 117 $ 93,347 $ 16,976 December 31, 2021 Less than 12 months 12 months or longer Total (dollars in thousands) # Fair Unrealized # Fair Unrealized # Fair Unrealized As of December 31, 2021 Available for sale Corporate bonds 1 $ 2,188 $ 10 - $ - $ - 1 $ 2,188 $ 10 US treasuries 1 992 7 - - - 1 992 7 US government agencies 7 9,831 173 4 3,837 163 11 13,668 336 State and political subdivisions 9 7,821 193 6 2,909 67 15 10,730 260 Asset-backed 2 1,751 9 2 1,717 7 4 3,468 16 Mortgage-backed FHLMC 10 13,705 303 4 4,644 192 14 18,349 495 FNMA 11 16,098 296 9 11,264 364 20 27,362 660 GNMA 2 655 4 3 3,215 93 5 3,870 97 43 $ 53,041 $ 995 28 $ 27,586 $ 886 71 $ 80,627 $ 1,881 |
Schedule of other investments | December 31, (dollars in thousands) 2022 2021 Federal Home Loan Bank stock $ 9,250 $ 1,241 Other nonmarketable investments 1,180 2,377 Investment in Trust Preferred subsidiaries 403 403 Total other investments $ 10,833 $ 4,021 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans and Allowance for Credit Losses [Abstract] | |
Schedule of composition of our loan portfolio | December 31 (dollars in thousands) 2022 2021 Commercial Owner occupied RE $ 612,901 18.7 % 488,965 19.6 % Non-owner occupied RE 862,579 26.3 % 666,833 26.8 % Construction 109,726 3.4 % 64,425 2.6 % Business 468,112 14.3 % 333,049 13.4 % Total commercial loans 2,053,318 62.7 % 1,553,272 62.4 % Consumer Real estate 931,278 28.4 % 694,401 27.9 % Home equity 179,300 5.5 % 154,839 6.2 % Construction 80,415 2.5 % 59,846 2.4 % Other 29,052 0.9 % 27,519 1.1 % Total consumer loans 1,220,045 37.3 % 936,605 37.6 % Total gross loans, net of deferred fees 3,273,363 100.0 % 2,489,877 100.0 % Less – allowance for credit losses (38,639 ) (30,408 ) Total loans, net $ 3,234,724 2,459,469 |
Schedule of composition of gross loans by rate type | December 31, (dollars in thousands) 2022 2021 Floating rate loans $ 439,287 376,805 Fixed rate loans 2,834,076 2,113,072 $ 3,273,363 2,489,877 |
Schedule of outstanding loans by credit quality indicators by year of origination | December 31, 2022 (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Revolving Converted to Term Total Commercial Owner occupied RE Pass $ 169,083 122,654 85,867 66,299 36,718 93,915 - - 574,536 Watch 14,648 479 9,339 3,658 - 6,792 - - 34,916 Special Mention 200 - - - - 2,960 - - 3,160 Substandard - - - - 289 - - - 289 Total Owner occupied RE 183,931 123,133 95,206 69,957 37,007 103,667 - - 612,901 Non-owner occupied RE Pass 281,890 169,599 113,264 59,550 79,722 106,967 604 137 811,733 Watch 1,061 9,491 - 10,683 1,408 11,660 - - 34,303 Special Mention - 202 - 6,087 - 930 - - 7,219 Substandard - 134 - 7,992 327 871 - - 9,324 Total Non-owner occupied RE 282,951 179,426 113,264 84,312 81,457 120,428 604 137 862,579 Construction Pass 48,420 55,129 4,811 247 - - - - 108,607 Watch 1,119 - - - - - - - 1,119 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total Construction 49,539 55,129 4,811 247 - - - - 109,726 Business Pass 136,489 57,804 29,864 21,807 35,249 28,914 136,337 709 447,174 Watch 3,186 2,058 1,318 1,282 179 3,074 3,783 439 15,319 Special Mention 1,137 260 386 210 - 252 115 642 3,002 Substandard 498 - 188 233 315 911 472 - 2,617 Total Business 141,310 60,122 31,756 23,533 35,743 33,151 140,707 1,790 468,112 Total Commercial loans 657,731 417,810 245,037 178,049 154,207 257,246 141,311 1,927 2,053,318 Consumer Real estate Pass 243,589 269,565 189,075 72,499 39,042 76,172 - - 889,942 Watch 6,196 8,256 3,847 2,278 494 3,671 - - 24,742 Special Mention 3,114 1,938 2,644 2,258 955 2,639 - - 13,548 Substandard - 648 227 341 408 1,422 - - 3,046 Total Real estate 252,899 280,407 195,793 77,376 40,899 83,904 - - 931,278 Home equity Pass - - - - - - 165,847 - 165,847 Watch - - - - - - 7,226 - 7,226 Special Mention - - - - - - 4,055 - 4,055 Substandard - - - - - - 2,172 - 2,172 Total Home equity - - - - - - 179,300 - 179,300 Construction Pass 41,138 34,039 4,923 - - - - - 80,100 Watch - - - - - - - - - Special Mention - - - 315 - - - - 315 Substandard - - - - - - - - - Total Construction 41,138 34,039 4,923 315 - - - - 80,415 Other Pass 3,894 3,038 1,702 1,534 341 3,015 14,465 - 27,989 Watch 46 367 15 5 16 175 93 - 717 Special Mention 94 - - 44 75 23 97 - 332 Substandard - - - 5 - - 9 - 14 Total Other 4,034 3,405 1,717 1,588 432 3,213 14,663 - 29,052 Total Consumer loans 298,071 317,851 202,433 79,279 41,331 87,117 193,963 - 1,220,045 Total loans $ 955,802 735,661 447,470 257,328 195,538 344,363 335,274 1,927 3,273,363 |
Schedule of loan balances classified by credit quality indicators and loan categories | December 31, 2021 Commercial Consumer (dollars in thousands) Owner Non-owner occupied RE Construction Business Real Estate Home Equity Construction Other Total Pass $ 487,422 589,280 64,425 328,371 684,923 148,933 59,846 27,365 2,390,565 Special mention 327 48,310 - 1,530 4,294 2,986 - 129 57,576 Substandard 1,216 29,243 - 3,148 5,184 2,920 - 25 41,736 Total loans $ 488,965 666,833 64,425 333,049 694,401 154,839 59,846 27,519 2,489,877 |
Schedule of loan balances by payment status | December 31, 2022 (dollars in thousands) Accruing 30-59 days past due Accruing 60-89 days past due Accruing 90 days or more past due Nonaccrual loans Accruing current Total Commercial Owner occupied RE $ - - - - 612,901 612,901 Non-owner occupied RE 119 757 - 247 861,456 862,579 Construction - - - - 109,726 109,726 Business 24 1 - 182 467,905 468,112 Consumer Real estate 330 - - 1,099 929,849 931,278 Home equity 50 - - 1,099 178,151 179,300 Construction - - - - 80,415 80,415 Other 88 - - - 28,964 29,052 Total loans $ 611 758 - 2,627 3,269,367 3,273,363 December 31, 2021 (dollars in thousands) Accruing 30-59 days past due Accruing 60-89 days past due Accruing 90 days or more past due Nonaccrual loans Accruing current Total Commercial Owner occupied RE $ - - - - 488,965 488,965 Non-owner occupied RE - - - 1,069 665,764 666,833 Construction - - - - 64,425 64,425 Business - - - - 333,049 333,049 Consumer Real estate 136 - - 1,750 692,515 694,401 Home equity 417 174 - 2,045 152,203 154,839 Construction - - - - 59,846 59,846 Other 5 - - - 27,514 27,519 Total loans $ 558 174 - 4,864 2,484,281 2,489,877 |
Schedule of nonperforming assets, including nonaccruing TDRs | December 31, (dollars in thousands) 2022 2021 Nonaccrual loans $ 831 1,912 Nonaccruing TDRs 1,796 2,952 Total nonaccrual loans, including nonaccruing TDRs 2,627 4,864 Other real estate owned - - Total nonperforming assets $ 2,627 4,864 Nonperforming assets as a percentage of: Total assets 0.07 % 0.17 % Gross loans 0.08 % 0.20 % Total loans over 90 days past due $ 402 554 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings 4,503 3,299 |
Schedule of nonaccrual loans by major categories | CECL Incurred loss December 31, 2022 December 31, 2021 Nonaccrual Nonaccrual loans loans Total Total with no with an nonaccrual nonaccrual (dollars in thousands) allowance allowance loans loans Commercial Owner occupied RE $ - - - - Non-owner occupied RE 114 133 247 1,070 Construction - - - - Business - 182 182 - Total commercial 114 315 429 1,070 Consumer Real estate - 1,099 1,099 1,750 Home equity 194 905 1,099 2,044 Construction - - - - Other - - - - Total consumer 194 2,004 2,198 3,794 Total $ 308 2,319 2,627 4,864 |
Schedule of key information for impaired loans | December 31, 2021 Recorded investment Impaired loans Impaired loans Unpaid with no related with related Related Principal Impaired allowance for allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses loan losses Commercial Owner occupied RE $ 1,261 1,261 1,261 - - Non-owner occupied RE 2,012 1,070 270 800 171 Construction - - - - - Business 1,104 1,104 - 1,104 452 Total commercial 4,377 3,435 1,531 1,904 623 Consumer Real estate 2,638 2,561 1,743 818 144 Home equity 2,206 2,044 1,989 55 55 Construction - - - - - Other 123 123 - 123 14 Total consumer 4,967 4,728 3,732 996 213 Total $ 9,344 8,163 5,263 2,900 836 |
Schedule of average recorded investment and interest income recognized on impaired loans | Year ended December 31, 2021 2020 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 1,387 65 2,423 88 Non-owner occupied RE 3,128 182 4,217 221 Construction 55 - 56 6 Business 2,218 62 2,306 243 Total commercial 6,788 309 9,002 558 Consumer Real estate 3,641 98 3,372 170 Home equity 1,964 85 2,128 5 Construction - - - - Other 129 4 141 79 Total consumer 5,734 187 5,641 254 Total $ 12,522 496 14,643 812 |
Schedule of activity related to the allowance for credit losses | Twelve months ended December 31, 2022 Commercial Consumer (dollars in thousands) Owner occupied RE Non-owner occupied RE Construction Business Real Estate Home Construction Other Total Balance, beginning of period $ 4,700 10,518 625 4,887 7,083 1,697 578 320 30,408 Adjustment for CECL (313 ) 333 154 1,057 (294 ) 438 130 (5 ) 1,500 Provision for credit losses 1,480 (2,015 ) 513 1,764 2,698 663 185 87 5,375 Loan charge-offs - - - (55 ) - (339 ) - (91 ) (485 ) Loan recoveries - 1,540 - 208 - 92 - 1 1,841 Net loan recoveries (charge-offs) - 1,540 - 153 - (247 ) - (90 ) 1,356 Balance, end of period $ 5,867 10,376 1,292 7,861 9,487 2,551 893 312 38,639 Net recoveries to average loans (annualized) (0.05 %) Allowance for credit losses to gross loans 1.18 % Allowance for credit losses to nonperforming loans 1470.84 % Twelve months ended December 31, 2021 Commercial Consumer (dollars in thousands) Owner occupied RE Non-owner occupied RE Construction Business Real Estate Home Construction Other Total Balance, beginning of period $ 8,092 12,050 1,154 7,870 10,482 3,248 746 507 44,149 Provision for credit losses (3,486 ) (958 ) (529 ) (2,041 ) (3,417 ) (1,613 ) (168 ) (188 ) (12,400 ) Loan charge-offs - (837 ) - (1,181 ) - (139 ) - (9 ) (2,166 ) Loan recoveries 94 263 - 239 18 201 - 10 825 Net loan recoveries (charge-offs) 94 (574 ) - (942 ) 18 62 - 1 (1,341 ) Balance, end of period $ 4,700 10,518 625 4,887 7,083 1,697 578 320 30,408 Twelve months ended December 31, 2020 Commercial Consumer (dollars in thousands) Owner occupied RE Non-owner occupied RE Construction Business Real Estate Home Construction Other Total Balance, beginning of period $ 2,782 4,305 541 3,716 3,308 1,446 268 276 16,642 Provision for credit losses 5,339 8,583 613 4,993 7,290 2,032 478 272 29,600 Loan charge-offs (94 ) (1,508 ) - (1,309 ) (134 ) (299 ) - (70 ) (3,414 ) Loan recoveries 65 670 - 470 18 69 - 29 1,321 Net loan recoveries (charge-offs) (29 ) (838 ) - (839 ) (116 ) (230 ) - (41 ) (2,093 ) Balance, end of period $ 8,092 12,050 1,154 7,870 10,482 3,248 746 507 44,149 Year ended December 31, 2021 2020 (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Balance, beginning of period $ 29,166 14,983 44,149 11,372 5,270 16,642 Provision (7,014 ) (5,386 ) (12,400 ) 19,500 10,100 29,600 Loan charge-offs (2,018 ) (148 ) (2,166 ) (2,911 ) (503 ) (3,414 ) Loan recoveries 596 229 825 1,205 116 1,321 Net loan charge-offs (1,422 ) 81 (1,341 ) (1,706 ) (387 ) (2,093 ) Balance, end of period $ 20,730 9,678 30,408 29,166 14,983 44,149 |
Schedule of allowance for loan losses and recorded investment in loans by impairment methodology | December 31, 2021 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 623 213 836 3,435 4,728 8,163 Collectively evaluated 20,107 9,465 29,572 1,549,837 931,877 2,481,714 Total $ 20,730 9,678 30,408 1,553,272 936,605 2,489,877 |
Schedule of analysis of collateral-dependent loans | December 31, 2022 Real Business (dollars in thousands) estate assets Other Total Commercial Owner occupied RE $ - - - - Non-owner occupied RE 114 - - 114 Construction - - - - Business 30 - - 30 Total commercial 144 - - 144 Consumer Real estate 207 - - 207 Home equity 194 - - 194 Construction - - - - Other - - - - Total consumer 401 - - 401 Total $ 545 - - 545 |
Schedule of allowance for credit losses for unfunded loan commitments | Twelve months ended (dollars in thousands) December 31, 2022 Balance, beginning of period - Adjustment for adoption of CECL $ 2,000 Provision for credit losses 780 Balance, end of period $ 2,780 Unfunded Loan Commitments 878,324 Reserve for Unfunded Commitments to Unfunded Loan Commitments 0.32 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property and equipment | December 31, (dollars in thousands) 2022 2021 Land $ 11,244 10,678 Buildings 54,454 22,150 Leasehold improvements 5,545 6,860 Furniture and equipment 20,422 11,589 Software 409 389 Construction in process 742 29,942 Accumulated depreciation and amortization (17,219 ) (15,882 ) Property and equipment, excluding ROU assets 75,597 65,726 ROU assets 23,586 26,644 Total property and equipment $ 99,183 92,370 |
Schedule of estimated useful lives of property and equipment | Type of Asset Life in Years Software 3 Furniture and equipment 5 to 7 Leasehold improvements 5 to 15 Buildings 40 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] [Standard Label] | |
Schedule of maturities of lease liabilities | Operating (dollars in thousands) Leases 2023 $ 2,016 2024 2,068 2025 2,124 2026 2,177 2027 2,234 Thereafter 22,203 Total undiscounted lease payments 32,822 Discount effect of cash flows 6,995 Total lease liability $ 25,827 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of activity of real estate acquired in settlement of loans portion of other real estate owned [Abstract] | |
Summary of activity of real estate acquired in settlement of loans portion of other real estate owned | For the year ended December 31, (dollars in thousands) 2022 2021 Balance, beginning of year $ - 1,169 Additions - 367 Sales - (1,536 ) Write-downs, net - - Balance, end of year $ - - |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of detail in deposit accounts | December 31, (dollars in thousands) 2022 2021 Noninterest bearing $ 804,115 768,651 Interest bearing: NOW accounts 318,030 401,788 Money market accounts 1,506,418 1,201,099 Savings 40,673 39,696 Time deposits 464,628 152,592 Total deposits $ 3,133,864 2,563,826 |
Scheduled maturities of certificates of deposit | (dollars in thousands) 2023 $ 420,049 2024 39,786 2025 4,683 2026 110 $ 464,628 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding financial derivative instruments | December 31, 2022 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 6,793 Other assets $ 49 MBS forward sales commitments 5,750 Other assets 27 Total derivative financial instruments $ 12,543 $ 76 December 31, 2021 Fair Value Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 32,478 Other assets $ 425 MBS forward sales commitments 21,000 Other liabilities (41 ) Total derivative financial instruments $ 53,478 $ 384 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on recurring basis | December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: Corporate bonds $ - 1,883 - 1,883 US treasuries - 871 - 871 US government agencies - 10,617 - 10,617 State and political subdivisions - 18,906 - 18,906 Asset-backed securities - 6,229 - 6,229 Mortgage-backed securities - 54,841 - 54,841 Mortgage loans held for sale - 3,917 - 3,917 Mortgage loan interest rate lock commitments - 49 - 49 MBS forward sales commitments - 27 - 27 Total assets measured at fair value on a recurring basis $ - 97,340 - 97,340 December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: Corporate bonds $ - 2,188 - 2,188 US treasuries - 992 - 992 US government agencies - 14,169 - 14,169 SBA securities - 438 - 438 State and political subdivisions - 25,176 - 25,176 Asset-backed securities - 10,164 - 10,164 Mortgage-backed securities - 67,154 - 67,154 Mortgage loans held for sale - 13,556 - 13,556 Mortgage loan interest rate lock commitments - 425 - 425 Total assets measured at fair value on a recurring basis $ - 134,262 - 134,262 Liabilities MBS forward sales commitments $ - 41 - 41 Total liabilities measured at fair value on a recurring basis $ - 41 - 41 |
Schedule of assets and liabilities measured at fair value on nonrecurring basis | December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Individually evaluated $ - 429 4,071 4,500 Total assets measured at fair value on a nonrecurring basis $ - 429 4,071 4,500 December 31, 2021 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 5,262 2,065 7,327 Total assets measured at fair value on a nonrecurring basis $ - 5,262 2,065 7,327 |
Schedule of unobservable inputs used in the fair value measurements | Valuation Technique Significant Unobservable Inputs Range of Inputs Individually evaluated loans Appraised Value/ Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal 0-25 % |
Schedule of estimated fair values of the company's financial instruments | December 31, 2022 (dollars in thousands) Carrying Fair Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 10,833 10,833 - - 10,833 Loans (1) 3,227,455 3,057,891 - - 3,057,891 Financial Liabilities: Deposits 3,133,865 2,717,900 - 2,717,900 - Subordinated debentures 36,214 39,885 - 39,885 - December 31, 2021 (dollars in thousands) Carrying Fair Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,021 4,021 - - 4,021 Loans (1) 2,451,306 2,422,621 - - 2,422,621 Financial Liabilities: Deposits 2,563,826 2,327,055 - 2,327,055 - Subordinated debentures 36,106 33,936 - 33,936 - |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per common share [Abstract] | |
Schedule of earnings per share calculation | December 31, (dollars in thousands, except share data) 2022 2021 2020 Numerator: Net income $ 29,115 46,711 18,328 Net income available to common shareholders $ 29,115 46,711 18,328 Denominator: Weighted-average common shares outstanding - basic 7,958,294 7,843,692 7,718,615 Common stock equivalents 113,396 145,288 105,599 Weighted-average common shares outstanding - diluted 8,071,690 7,988,980 7,824,214 Earnings per common share: Basic $ 3.66 5.96 2.37 Diluted $ 3.61 5.85 2.34 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule of components of income tax expense | For the years ended December 31, (dollars in thousands) 2022 2021 2020 Current income taxes: Federal $ 8,482 10,414 10,244 State 1,273 2,088 841 Total current tax expense 9,755 12,502 11,085 Deferred income tax expense (benefit) (757 ) 1,590 (5,594 ) Income tax expense $ 8,998 14,092 5,491 |
Schedule of taxes computed using the statutory tax rate | For the years ended December 31, (dollars in thousands) 2022 2021 2020 Tax expense at statutory rate $ 8,004 12,768 5,002 Effect of state income taxes, net of federal benefit 1,006 1,649 664 Exempt income (27 ) (43 ) (27 ) Effect of stock-based compensation 42 (115 ) (30 ) Other (27 ) (167 ) (118 ) Income tax expense $ 8,998 14,092 5,491 |
Schedule of components of the deferred tax assets and liabilities | December 31, (dollars in thousands) 2022 2021 Deferred tax assets: Allowance for credit losses $ 8,114 6,386 Reserve for unfunded commitments 584 - Unrealized loss on securities available for sale 3,565 197 Net deferred loan fees 1,537 1,054 Deferred compensation 1,762 1,930 Lease liabilities 5,424 5,883 Other 393 260 21,379 15,710 Deferred tax liabilities: Property and equipment 3,561 1,419 Hedging transactions 27 151 Prepaid expenses 316 148 ROU assets 4,953 5,595 8,857 7,313 Net deferred tax asset $ 12,522 8,397 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of loan transactions with directors and executive officers, including their affiliates | For the years ended December 31, (dollars in thousands) 2022 2021 Balance, beginning of year $ 8,790 5,790 New loans 21,010 11,629 Less loan payments (12,583 ) (8,629 ) Balance, end of year $ 17,217 8,790 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | For the years ended December 31, (dollars in thousands) 2022 2021 2020 Stock option expense $ 927 1,148 1,017 Restricted stock grant expense 1,099 499 380 Total stock-based compensation expense $ 2,026 1,647 1,397 |
Schedule of the status of the stock option plan and changes | For the years ended December 31, 2022 2021 2020 Weighted Weighted Weighted Weighted Average Weighted Average Weighted Average average Remaining average Remaining average Remaining exercise Contractual exercise Contractual exercise Contractual Shares price Life Shares price Life Shares price Life Outstanding at beginning of year 464,724 $ 33.97 495,195 $ 29.93 541,414 $ 26.65 Granted - - 121,000 40.45 101,700 37.77 Exercised (32,375 ) 27.94 (127,871 ) 23.56 (93,870 ) 14.79 Forfeited or expired (5,125 ) 43.14 (23,600 ) 38.88 (54,049 ) 38.15 Outstanding at end of year 427,224 $ 34.32 5.7 years 464,724 $ 33.97 6.6 years 495,195 $ 29.93 6.4 years Options exercisable at year-end 287,902 $ 32.35 4.8 years 239,340 $ 29.68 5.0 years 287,548 $ 24.93 5.0 years Weighted average fair value of options granted during the year $ - $ 16.40 $ 11.37 Shares available for grant 370,824 422,550 136,339 |
Schedule of assumptions used | 2022 2021 2020 Dividend yield n/a - - Expected life n/a 7 years 7 years Expected volatility n/a 38.48 % 25.51 % Risk-free interest rate n/a 0.74 % 1.29 % |
Schedule of the status of the company's non vested restricted stock and changes | December 31, 2022 2021 2020 Restricted Weighted Restricted Weighted Restricted Weighted Nonvested at beginning of year 41,699 $ 44.71 26,099 $ 38.05 32,825 $ 34.78 Granted 53,376 56.25 26,450 48.56 13,200 39.87 Vested (14,213 ) 43.26 (9,600 ) 38.03 (14,051 ) 32.06 Forfeited (525 ) 61.14 (1,250 ) 38.56 (5,875 ) 37.74 Nonvested at end of year 80,337 $ 52.53 41,699 $ 44.71 26,099 $ 38.05 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of capital amounts and ratios of the Bank and the Company and the regulatory minimum requirements | To be well capitalized For capital under prompt adequacy purposes corrective action Actual minimum provisions minimum (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 The Bank Total Capital (to risk weighted assets) $ 366,988 12.45 % $ 235,892 8.00 % $ 294,865 10.00 % Tier 1 Capital (to risk weighted assets) 330,108 11.20 % 176,919 6.00 % 235,892 8.00 % Common Equity Tier 1 Capital (to risk weighted assets) 330,108 11.20 % 132,689 4.50 % 191,662 6.50 % Tier 1 Capital (to average assets) 330,108 9.43 % 140,040 4.00 % 175,050 5.00 % The Company Total Capital (to risk weighted assets) 380,802 12.91 % 235,892 8.00 % n/a n/a Tier 1 Capital (to risk weighted assets) 320,922 10.88 % 176,919 6.00 % n/a n/a Common Equity Tier 1 Capital (to risk weighted assets) 307,922 10.44 % 132,689 4.50 % n/a n/a Tier 1 Capital (to average assets) 320,922 9.17 % 140,057 4.00 % n/a n/a To be well capitalized For capital under prompt adequacy purposes corrective action Actual minimum provisions minimum (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 The Bank Total Capital (to risk weighted assets) $ 331,052 14.36 % $ 184,418 8.00 % $ 230,522 10.00 % Tier 1 Capital (to risk weighted assets) 302,217 13.11 % 138,313 6.00 % 184,418 8.00 % Common Equity Tier 1 Capital (to risk weighted assets) 302,217 13.11 % 103,735 4.50 % 149,839 6.50 % Tier 1 Capital (to average assets) 302,217 10.55 % 114,537 4.00 % 143,172 5.00 % The Company (1) Total Capital (to risk weighted assets) 343,476 14.90 % 184,418 8.00 % n/a n/a Tier 1 Capital (to risk weighted assets) 291,641 12.65 % 138,313 6.00 % n/a n/a Common Equity Tier 1 Capital (to risk weighted assets) 278,641 12.09 % 103,735 4.50 % n/a n/a Tier 1 Capital (to average assets) 291,641 10.18 % 114,555 4.00 % n/a n/a |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed financial information of Southern First Bancshares, Inc. (parent company only) | December 31, (dollars in thousands) 2022 2021 Assets Cash and cash equivalents $ 13,882 12,379 Investment in subsidiaries 317,102 301,880 Other assets 21 21 Total assets $ 331,005 314,280 Liabilities and Shareholders’ Equity Accounts payable and accrued expenses $ 279 274 Subordinated debentures 36,214 36,105 Shareholders’ equity 294,512 277,901 Total liabilities and shareholders’ equity $ 331,005 314,280 For the years ended December 31, (dollars in thousands) 2022 2021 2020 Revenues Interest income $ 20 17 17 Total revenue 20 17 17 Expenses Interest expense 1,730 1,523 1,708 Other expenses 240 285 283 Total expenses 1,970 1,808 1,991 Income tax benefit 409 376 415 Loss before equity in undistributed net income of subsidiaries (1,541 ) (1,415 ) (1,559 ) Equity in undistributed net income of subsidiaries 30,656 48,126 19,887 Net income $ 29,115 46,711 18,328 For the years ended December 31, (dollars in thousands) 2022 2021 2020 Operating activities Net income $ 29,115 46,711 18,328 Adjustments to reconcile net income to cash provided by (used for) operating activities Equity in undistributed net income of subsidiaries (30,656 ) (48,126 ) (19,887 ) Compensation expense related to stock options and restricted stock grants 2,026 1,647 1,397 (Increase) decrease in other assets - 8 (23 ) Increase (decrease) in accounts payable and accrued expenses 113 108 63 Net cash provided by (used for) operating activities 598 348 (122 ) Investing activities Investment in subsidiaries, net - - - Net cash used for investing activities - - - Financing activities Issuance of common stock - - - Proceeds from the exercise of stock options and warrants 905 3,012 1,388 Net cash provided by financing activities 905 3,012 1,388 Net increase in cash and cash equivalents 1,503 3,360 1,266 Cash and cash equivalents, beginning of year 12,379 9,019 7,753 Cash and cash equivalents, end of year $ 13,882 12,379 9,019 |
Selected Condensed Quarterly _2
Selected Condensed Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial information | 2022 For the quarters ended (dollars in thousands, except share data) March 31 June 30 September 30 December 31 Interest income $ 24,464 27,238 30,934 35,026 Interest expense 1,300 2,354 5,480 10,907 Net interest income 23,164 24,884 25,454 24,119 Provision for credit losses 1,105 1,775 950 2,325 Noninterest income 2,927 2,265 2,680 1,707 Noninterest expenses 14,685 15,788 16,046 16,413 Income before income tax expense 10,301 9,586 11,138 7,088 Income tax expense 2,331 2,346 2,725 1,596 Net income available to common shareholders $ 7,970 7,240 8,413 5,492 Earnings per common share Basic $ 1.00 0.91 1.06 0.69 Diluted $ 0.98 0.90 1.04 0.68 Weighted average common shares outstanding Basic 7,932 7,958 7,972 7,971 Diluted 8,096 8,055 8,065 8,072 2021 For the quarters ended March 31 June 30 September 30 December 31 Interest income $ 22,813 22,731 23,486 24,137 Interest expense 1,540 1,301 1,314 1,280 Net interest income 21,273 21,430 22,172 22,857 Provision for credit losses (300 ) (1,900 ) (6,000 ) (4,200 ) Noninterest income 5,904 3,622 4,239 3,336 Noninterest expenses 14,162 13,495 14,039 14,734 Income before income tax expense 13,315 13,457 18,372 15,659 Income tax expense 2,949 3,134 4,355 3,654 Net income available to common shareholders $ 10,366 10,323 14,017 12,005 Earnings per common share Basic $ 1.33 1.32 1.78 1.52 Diluted $ 1.31 1.29 1.75 1.49 Weighted average common shares outstanding Basic 7,775 7,848 7,874 7,877 Diluted 7,909 7,988 8,001 8,057 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Activities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Real estate loan percentage | 84.80% | 85.50% |
Line of credit | $ 15,000,000 | |
Unused line | 15,000,000 | |
Cash and cash equivalents | 5,800,000 | $ 5,200,000 |
Allowance for loan losses | 1,500,000 | |
Liability for unfunded commitments | 2,000,000 | |
Net decrease to retained earnings | 2,800,000 | |
Accrued interest receivable | 382,000 | |
Accrued interest receivable related to loans | $ 8,900,000 |
Investment Securities (Details)
Investment Securities (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Sale of investment securities | $ 12,600,000 | $ 770,000 | $ 2,000,000 |
Gross gain on sale of investment securities | 83,000 | 6,000 | 4,000 |
Gross loss on sale of investments | $ 71,000 | $ 9,000 | $ 1,000 |
Fair market value, less than 12 months, number of investments | 117 |
Investment Securities (Detail_2
Investment Securities (Details) - Schedule of amortized costs and fair value of investment securities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Corporate bonds [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | $ 2,172 | $ 2,198 |
Available for sale, Gross Unrealized Gains | ||
Available for sale, Gross Unrealized Losses | 289 | 10 |
Available for sale, Fair Value | 1,883 | 2,188 |
US treasuries [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 999 | 999 |
Available for sale, Gross Unrealized Gains | ||
Available for sale, Gross Unrealized Losses | 128 | 7 |
Available for sale, Fair Value | 871 | 992 |
US Government Agencies [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 13,007 | 14,504 |
Available for sale, Gross Unrealized Gains | 1 | |
Available for sale, Gross Unrealized Losses | 2,390 | 336 |
Available for sale, Fair Value | 10,617 | 14,169 |
State and Political Subdivisions [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 22,910 | 24,887 |
Available for sale, Gross Unrealized Gains | 549 | |
Available for sale, Gross Unrealized Losses | 4,004 | 260 |
Available for sale, Fair Value | 18,906 | 25,176 |
Asset-backed Securities [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 6,435 | 10,136 |
Available for sale, Gross Unrealized Gains | 45 | |
Available for sale, Gross Unrealized Losses | 206 | 17 |
Available for sale, Fair Value | 6,229 | 10,164 |
Mortgage-backed securities [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 68,065 | |
Available for sale, Gross Unrealized Gains | 340 | |
Available for sale, Gross Unrealized Losses | 1,251 | |
Available for sale, Fair Value | 67,154 | |
Mortgage-backed securities [Member] | FHLMC [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 24,086 | 23,057 |
Available for sale, Gross Unrealized Gains | 102 | |
Available for sale, Gross Unrealized Losses | 3,745 | 494 |
Available for sale, Fair Value | 20,341 | 22,665 |
Mortgage-backed securities [Member] | FNMA [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 35,141 | 40,924 |
Available for sale, Gross Unrealized Gains | 235 | |
Available for sale, Gross Unrealized Losses | 5,520 | 660 |
Available for sale, Fair Value | 29,621 | 40,499 |
Mortgage-backed securities [Member] | Total investment securities available for sale [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 110,323 | 121,218 |
Available for sale, Gross Unrealized Gains | 944 | |
Available for sale, Gross Unrealized Losses | 16,976 | 1,881 |
Available for sale, Fair Value | 93,347 | 120,281 |
Mortgage-backed securities [Member] | GNMA [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 4,084 | |
Available for sale, Gross Unrealized Gains | 3 | |
Available for sale, Gross Unrealized Losses | 97 | |
Available for sale, Fair Value | 3,990 | |
Mortgage-backed securities [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 64,800 | |
Available for sale, Gross Unrealized Gains | ||
Available for sale, Gross Unrealized Losses | 9,959 | |
Available for sale, Fair Value | 54,841 | |
Mortgage-backed securities [Member] | GNMA [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 5,573 | |
Available for sale, Gross Unrealized Gains | ||
Available for sale, Gross Unrealized Losses | 694 | |
Available for sale, Fair Value | $ 4,879 | |
SBA Securities [Member] | ||
Available for sale | ||
Available for sale, Amortized Cost | 429 | |
Available for sale, Gross Unrealized Gains | 9 | |
Available for sale, Gross Unrealized Losses | ||
Available for sale, Fair Value | $ 438 |
Investment Securities (Detail_3
Investment Securities (Details) - Schedule of amortized costs and fair values of investment securities available for sale by contractual maturity - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available for sale | ||
Due within one year, Amortized Cost | $ 384 | |
Due within one year, Fair Value | 387 | |
Due after one through five years, Amortized Cost | 9,398 | 7,429 |
Due after one through five years, Fair Value | 8,277 | 7,363 |
Due after five through ten years , Amortized Cost | 24,436 | 27,298 |
Due after five through ten years , Fair Value | 20,043 | 26,953 |
Due after ten years , Amortized Cost | 76,489 | 86,107 |
Due after ten years ,Fair Value | 65,027 | 85,578 |
Available for sale, Amortized Cost | 110,323 | 121,218 |
Available for sale, Fair Value | $ 93,347 | $ 120,281 |
Investment Securities (Detail_4
Investment Securities (Details) - Schedule of gross unrealized losses on investment securities and fair market value of related securities $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Corporate bonds [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 0 | 1 |
Available for sale Securities, Less than 12 months, Fair value | $ 2,188 | |
Available for sale Securities, Less than 12 months, Unrealized losses | 10 | |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 1 | |
Available for sale Securities, 12 months or longer, Fair value | $ 1,883 | |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 289 | |
Available for sale Securities, Total, Number of investments | Investments | 1 | 1 |
Available for sale Securities, Total, Fair value | $ 1,883 | $ 2,188 |
Available for sale Securities, Total, Unrealized losses | $ 289 | $ 10 |
US treasuries [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 0 | 1 |
Available for sale Securities, Less than 12 months, Fair value | $ 992 | |
Available for sale Securities, Less than 12 months, Unrealized losses | 7 | |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 1 | |
Available for sale Securities, 12 months or longer, Fair value | $ 871 | |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 128 | |
Available for sale Securities, Total, Number of investments | Investments | 1 | 1 |
Available for sale Securities, Total, Fair value | $ 871 | $ 992 |
Available for sale Securities, Total, Unrealized losses | $ 128 | $ 7 |
US government agencies [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 0 | 7 |
Available for sale Securities, Less than 12 months, Fair value | $ 9,831 | |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 173 | |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 10 | 4 |
Available for sale Securities, 12 months or longer, Fair value | $ 10,617 | $ 3,837 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 2,390 | $ 163 |
Available for sale Securities, Total, Number of investments | Investments | 10 | 11 |
Available for sale Securities, Total, Fair value | $ 10,617 | $ 13,668 |
Available for sale Securities, Total, Unrealized losses | $ 2,390 | $ 336 |
State and political subdivisions [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 10 | 9 |
Available for sale Securities, Less than 12 months, Fair value | $ 5,101 | $ 7,821 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 763 | $ 193 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 22 | 6 |
Available for sale Securities, 12 months or longer, Fair value | $ 13,805 | $ 2,909 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 3,241 | $ 67 |
Available for sale Securities, Total, Number of investments | Investments | 32 | 15 |
Available for sale Securities, Total, Fair value | $ 18,906 | $ 10,730 |
Available for sale Securities, Total, Unrealized losses | $ 4,004 | $ 260 |
Asset-backed [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 5 | 2 |
Available for sale Securities, Less than 12 months, Fair value | $ 4,291 | $ 1,751 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 135 | $ 9 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 3 | 2 |
Available for sale Securities, 12 months or longer, Fair value | $ 1,938 | $ 1,717 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 71 | $ 7 |
Available for sale Securities, Total, Number of investments | Investments | 8 | 4 |
Available for sale Securities, Total, Fair value | $ 6,229 | $ 3,468 |
Available for sale Securities, Total, Unrealized losses | $ 206 | $ 16 |
FHLMC [Member] | Mortgage-backed securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 4 | 10 |
Available for sale Securities, Less than 12 months, Fair value | $ 3,712 | $ 13,705 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 155 | $ 303 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 17 | 4 |
Available for sale Securities, 12 months or longer, Fair value | $ 16,629 | $ 4,644 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 3,590 | $ 192 |
Available for sale Securities, Total, Number of investments | Investments | 21 | 14 |
Available for sale Securities, Total, Fair value | $ 20,341 | $ 18,349 |
Available for sale Securities, Total, Unrealized losses | $ 3,745 | $ 495 |
FNMA [Member] | Mortgage-backed securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 9 | 11 |
Available for sale Securities, Less than 12 months, Fair value | $ 2,208 | $ 16,098 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 201 | $ 296 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 28 | 9 |
Available for sale Securities, 12 months or longer, Fair value | $ 27,413 | $ 11,264 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 5,319 | $ 364 |
Available for sale Securities, Total, Number of investments | Investments | 37 | 20 |
Available for sale Securities, Total, Fair value | $ 29,621 | $ 27,362 |
Available for sale Securities, Total, Unrealized losses | $ 5,520 | $ 660 |
GNMA [Member] | Mortgage-backed securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 1 | 2 |
Available for sale Securities, Less than 12 months, Fair value | $ 103 | $ 655 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 7 | $ 4 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 6 | 3 |
Available for sale Securities, 12 months or longer, Fair value | $ 4,776 | $ 3,215 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 687 | $ 93 |
Available for sale Securities, Total, Number of investments | Investments | 7 | 5 |
Available for sale Securities, Total, Fair value | $ 4,879 | $ 3,870 |
Available for sale Securities, Total, Unrealized losses | $ 694 | $ 97 |
Total investment securities [Member] | Mortgage-backed securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 29 | 43 |
Available for sale Securities, Less than 12 months, Fair value | $ 15,415 | $ 53,041 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 1,261 | $ 995 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 88 | 28 |
Available for sale Securities, 12 months or longer, Fair value | $ 77,932 | $ 27,586 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 15,715 | $ 886 |
Available for sale Securities, Total, Number of investments | Investments | 117 | 71 |
Available for sale Securities, Total, Fair value | $ 93,347 | $ 80,627 |
Available for sale Securities, Total, Unrealized losses | $ 16,976 | $ 1,881 |
Investment Securities (Detail_5
Investment Securities (Details) - Schedule of other investments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Summary Of Other Investments [Abstract] | ||
Federal Home Loan Bank stock | $ 9,250 | $ 1,241 |
Other nonmarketable investments | 1,180 | 2,377 |
Investment in Trust Preferred subsidiaries | 403 | 403 |
Total other investments | $ 10,833 | $ 4,021 |
Mortgage Loans Held for Sale (D
Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Mortgage Loans Held For Sale [Abstract] | ||
Mortgage loans held for sale, fair value | $ 3.9 | $ 13.6 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jun. 26, 2020 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Allowance for Credit Losses (Details) [Line Items] | ||||
Real estate loan percentage of total loan | 84.80% | |||
Commercial loans percentage | 57.10% | |||
Consumer loans percentage | 42.90% | |||
Occupied loans percentage | 18.70% | |||
Construction loans percentage | 3.40% | |||
Net of deferred loan fees and costs (in Dollars) | $ 7,300,000 | $ 5,000,000 | ||
Mortgage loans (in Dollars) | $ 1,050,000,000 | |||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.11% | 0.09% | ||
Foregone interest income on non accrual loans (in Dollars) | $ 28,000 | $ 55,000 | ||
Allowance for credit losses (in Dollars) | 1,500,000 | |||
Provision for credit losses (in Dollars) | 5,400,000 | |||
Primarily loan growth (in Dollars) | 783,500,000 | |||
Allowance for credit losses for loan commitments (in Dollars) | $ 2,800,000 | |||
Non Owner Occupied loans [Member] | ||||
Loans and Allowance for Credit Losses (Details) [Line Items] | ||||
Commercial loans percentage | 26.30% | |||
Paycheck Protection Program [Member] | ||||
Loans and Allowance for Credit Losses (Details) [Line Items] | ||||
Percentage of SBA to guarantee of certain loans | 100% | |||
Number of loan processed | 853 | |||
Loans receivables (in Dollars) | $ 97,500,000 | |||
Receiving SBA lender fee income (in Dollars) | $ 3,900,000 | |||
SBA lender fee income (in Dollars) | $ 2,200,000 | |||
SBA referral fees (in Dollars) | $ 268,000 | |||
Commercial Loan [Member] | ||||
Loans and Allowance for Credit Losses (Details) [Line Items] | ||||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.03% | 0% | ||
Consumer Loan [Member] | ||||
Loans and Allowance for Credit Losses (Details) [Line Items] | ||||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.08% | 0.09% |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses (Details) - Schedule of composition of our loan portfolio - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consumer | ||
Total gross loans, net of deferred fees | $ 3,273,363 | $ 2,489,877 |
Total gross loans, net of deferred fees percentage | 100% | 100% |
Less – allowance for credit losses | $ (38,639) | $ (30,408) |
Total loans, net | 3,234,724 | 2,459,469 |
Commercial [Member] | ||
Commercial | ||
Total commercial loans | $ 2,053,318 | $ 1,553,272 |
Total commercial loans percentage | 62.70% | 62.40% |
Commercial [Member] | Construction [Member] | ||
Commercial | ||
Total commercial loans | $ 109,726 | $ 64,425 |
Total commercial loans percentage | 3.40% | 2.60% |
Commercial [Member] | Business [Member] | ||
Commercial | ||
Total commercial loans | $ 468,112 | $ 333,049 |
Total commercial loans percentage | 14.30% | 13.40% |
Consumer [Member] | ||
Consumer | ||
Total consumer loans | $ 1,220,045 | $ 936,605 |
Total consumer loans percentage | 37.30% | 37.60% |
Consumer [Member] | Construction [Member] | ||
Consumer | ||
Total consumer loans | $ 80,415 | $ 59,846 |
Total consumer loans percentage | 2.50% | 2.40% |
Consumer [Member] | Real estate [Member] | ||
Consumer | ||
Total consumer loans | $ 931,278 | $ 694,401 |
Total consumer loans percentage | 28.40% | 27.90% |
Consumer [Member] | Home equity [Member] | ||
Consumer | ||
Total consumer loans | $ 179,300 | $ 154,839 |
Total consumer loans percentage | 5.50% | 6.20% |
Consumer [Member] | Other [Member] | ||
Consumer | ||
Total consumer loans | $ 29,052 | $ 27,519 |
Total consumer loans percentage | 0.90% | 1.10% |
Owner occupied RE [Member] | Commercial [Member] | ||
Commercial | ||
Total commercial loans | $ 612,901 | $ 488,965 |
Total commercial loans percentage | 18.70% | 19.60% |
Non-owner occupied RE [Member] | Commercial [Member] | ||
Commercial | ||
Total commercial loans | $ 862,579 | $ 666,833 |
Total commercial loans percentage | 26.30% | 26.80% |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses (Details) - Schedule of composition of gross loans by rate type - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Composition Of Gross Loans By Rate Type Abstract | ||
Floating rate loans | $ 439,287 | $ 376,805 |
Fixed rate loans | 2,834,076 | 2,113,072 |
Total gross loans, net of deferred fees | $ 3,273,363 | $ 2,489,877 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses (Details) - Schedule of outstanding loans by credit quality indicators by year of origination $ in Thousands | Dec. 31, 2022 USD ($) |
Owner occupied RE | |
2022 | $ 955,802 |
2021 | 735,661 |
2020 | 447,470 |
2019 | 257,328 |
2018 | 195,538 |
Prior | 344,363 |
Revolving | 335,274 |
Revolving Converted to Term | 1,927 |
Total | 3,273,363 |
Commercial [Member] | |
Owner occupied RE | |
2022 | 657,731 |
2021 | 417,810 |
2020 | 245,037 |
2019 | 178,049 |
2018 | 154,207 |
Prior | 257,246 |
Revolving | 141,311 |
Revolving Converted to Term | 1,927 |
Total | 2,053,318 |
Commercial [Member] | Construction [Member] | |
Owner occupied RE | |
2022 | 49,539 |
2021 | 55,129 |
2020 | 4,811 |
2019 | 247 |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | 109,726 |
Commercial [Member] | Construction [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | 48,420 |
2021 | 55,129 |
2020 | 4,811 |
2019 | 247 |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | 108,607 |
Commercial [Member] | Construction [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | 1,119 |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | 1,119 |
Commercial [Member] | Construction [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | |
Commercial [Member] | Construction [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | |
Commercial [Member] | Business [Member] | |
Owner occupied RE | |
2022 | 141,310 |
2021 | 60,122 |
2020 | 31,756 |
2019 | 23,533 |
2018 | 35,743 |
Prior | 33,151 |
Revolving | 140,707 |
Revolving Converted to Term | 1,790 |
Total | 468,112 |
Commercial [Member] | Business [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | 136,489 |
2021 | 57,804 |
2020 | 29,864 |
2019 | 21,807 |
2018 | 35,249 |
Prior | 28,914 |
Revolving | 136,337 |
Revolving Converted to Term | 709 |
Total | 447,174 |
Commercial [Member] | Business [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | 3,186 |
2021 | 2,058 |
2020 | 1,318 |
2019 | 1,282 |
2018 | 179 |
Prior | 3,074 |
Revolving | 3,783 |
Revolving Converted to Term | 439 |
Total | 15,319 |
Commercial [Member] | Business [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | 1,137 |
2021 | 260 |
2020 | 386 |
2019 | 210 |
2018 | |
Prior | 252 |
Revolving | 115 |
Revolving Converted to Term | 642 |
Total | 3,002 |
Commercial [Member] | Business [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | 498 |
2021 | |
2020 | 188 |
2019 | 233 |
2018 | 315 |
Prior | 911 |
Revolving | 472 |
Revolving Converted to Term | |
Total | 2,617 |
Consumer [Member] | |
Owner occupied RE | |
2022 | 298,071 |
2021 | 317,851 |
2020 | 202,433 |
2019 | 79,279 |
2018 | 41,331 |
Prior | 87,117 |
Revolving | 193,963 |
Revolving Converted to Term | |
Total | 1,220,045 |
Consumer [Member] | Construction [Member] | |
Owner occupied RE | |
2022 | 41,138 |
2021 | 34,039 |
2020 | 4,923 |
2019 | 315 |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | 80,415 |
Consumer [Member] | Construction [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | 41,138 |
2021 | 34,039 |
2020 | 4,923 |
2019 | |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | 80,100 |
Consumer [Member] | Construction [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2019 | |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Consumer [Member] | Construction [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | 315 |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | 315 |
Consumer [Member] | Construction [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | |
Consumer [Member] | Real estate [Member] | |
Owner occupied RE | |
2022 | 252,899 |
2021 | 280,407 |
2020 | 195,793 |
2019 | 77,376 |
2018 | 40,899 |
Prior | 83,904 |
Revolving | |
Revolving Converted to Term | |
Total | 931,278 |
Consumer [Member] | Real estate [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | 243,589 |
2021 | 269,565 |
2020 | 189,075 |
2019 | 72,499 |
2018 | 39,042 |
Prior | 76,172 |
Revolving | |
Revolving Converted to Term | |
Total | 889,942 |
Consumer [Member] | Real estate [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | 6,196 |
2021 | 8,256 |
2020 | 3,847 |
2019 | 2,278 |
2018 | 494 |
Prior | 3,671 |
Revolving | |
Revolving Converted to Term | |
Total | 24,742 |
Consumer [Member] | Real estate [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | 3,114 |
2021 | 1,938 |
2020 | 2,644 |
2019 | 2,258 |
2018 | 955 |
Prior | 2,639 |
Revolving | |
Revolving Converted to Term | |
Total | 13,548 |
Consumer [Member] | Real estate [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | |
2021 | 648 |
2020 | 227 |
2019 | 341 |
2018 | 408 |
Prior | 1,422 |
Revolving | |
Revolving Converted to Term | |
Total | 3,046 |
Consumer [Member] | Home equity [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | 179,300 |
Revolving Converted to Term | |
Total | 179,300 |
Consumer [Member] | Home equity [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | 165,847 |
Revolving Converted to Term | |
Total | 165,847 |
Consumer [Member] | Home equity [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | 7,226 |
Revolving Converted to Term | |
Total | 7,226 |
Consumer [Member] | Home equity [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | 4,055 |
Revolving Converted to Term | |
Total | 4,055 |
Consumer [Member] | Home equity [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | |
Revolving | 2,172 |
Revolving Converted to Term | |
Total | 2,172 |
Consumer [Member] | Other [Member] | |
Owner occupied RE | |
2022 | 4,034 |
2021 | 3,405 |
2020 | 1,717 |
2019 | 1,588 |
2018 | 432 |
Prior | 3,213 |
Revolving | 14,663 |
Revolving Converted to Term | |
Total | 29,052 |
Consumer [Member] | Other [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | 3,894 |
2021 | 3,038 |
2020 | 1,702 |
2019 | 1,534 |
2018 | 341 |
Prior | 3,015 |
Revolving | 14,465 |
Revolving Converted to Term | |
Total | 27,989 |
Consumer [Member] | Other [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | 46 |
2021 | 367 |
2020 | 15 |
2019 | 5 |
2018 | 16 |
Prior | 175 |
Revolving | 93 |
Revolving Converted to Term | |
Total | 717 |
Consumer [Member] | Other [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | 94 |
2021 | |
2020 | |
2019 | 44 |
2018 | 75 |
Prior | 23 |
Revolving | 97 |
Revolving Converted to Term | |
Total | 332 |
Consumer [Member] | Other [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | |
2020 | |
2019 | 5 |
2018 | |
Prior | |
Revolving | 9 |
Revolving Converted to Term | |
Total | 14 |
Owner occupied RE [Member] | Commercial [Member] | |
Owner occupied RE | |
2022 | 183,931 |
2021 | 123,133 |
2020 | 95,206 |
2019 | 69,957 |
2018 | 37,007 |
Prior | 103,667 |
Revolving | |
Revolving Converted to Term | |
Total | 612,901 |
Owner occupied RE [Member] | Commercial [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | 169,083 |
2021 | 122,654 |
2020 | 85,867 |
2019 | 66,299 |
2018 | 36,718 |
Prior | 93,915 |
Revolving | |
Revolving Converted to Term | |
Total | 574,536 |
Owner occupied RE [Member] | Commercial [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | 14,648 |
2021 | 479 |
2020 | 9,339 |
2019 | 3,658 |
2018 | |
Prior | 6,792 |
Revolving | |
Revolving Converted to Term | |
Total | 34,916 |
Owner occupied RE [Member] | Commercial [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | 200 |
2021 | |
2020 | |
2019 | |
2018 | |
Prior | 2,960 |
Revolving | |
Revolving Converted to Term | |
Total | 3,160 |
Owner occupied RE [Member] | Commercial [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | |
2021 | |
2019 | |
2018 | 289 |
Prior | |
Revolving | |
Revolving Converted to Term | |
Total | 289 |
Non-owner occupied RE [Member] | Commercial [Member] | |
Owner occupied RE | |
2022 | 282,951 |
2021 | 179,426 |
2020 | 113,264 |
2019 | 84,312 |
2018 | 81,457 |
Prior | 120,428 |
Revolving | 604 |
Revolving Converted to Term | 137 |
Total | 862,579 |
Non-owner occupied RE [Member] | Commercial [Member] | Pass [Member] | |
Owner occupied RE | |
2022 | 281,890 |
2021 | 169,599 |
2020 | 113,264 |
2019 | 59,550 |
2018 | 79,722 |
Prior | 106,967 |
Revolving | 604 |
Revolving Converted to Term | 137 |
Total | 811,733 |
Non-owner occupied RE [Member] | Commercial [Member] | Watch [Member] | |
Owner occupied RE | |
2022 | 1,061 |
2021 | 9,491 |
2020 | |
2019 | 10,683 |
2018 | 1,408 |
Prior | 11,660 |
Revolving | |
Revolving Converted to Term | |
Total | 34,303 |
Non-owner occupied RE [Member] | Commercial [Member] | Special Mention [Member] | |
Owner occupied RE | |
2022 | |
2021 | 202 |
2020 | |
2019 | 6,087 |
2018 | |
Prior | 930 |
Revolving | |
Revolving Converted to Term | |
Total | 7,219 |
Non-owner occupied RE [Member] | Commercial [Member] | Substandard [Member] | |
Owner occupied RE | |
2022 | |
2021 | 134 |
2020 | |
2019 | 7,992 |
2018 | 327 |
Prior | 871 |
Revolving | |
Revolving Converted to Term | |
Total | $ 9,324 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories $ in Thousands | Dec. 31, 2021 USD ($) |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | $ 2,489,877 |
Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 2,390,565 |
Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 57,576 |
Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 41,736 |
Commercial [Member] | Owner Occupied RE [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 488,965 |
Commercial [Member] | Owner Occupied RE [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 487,422 |
Commercial [Member] | Owner Occupied RE [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 327 |
Commercial [Member] | Owner Occupied RE [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 1,216 |
Commercial [Member] | Non-Owner Occupied RE [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 666,833 |
Commercial [Member] | Non-Owner Occupied RE [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 589,280 |
Commercial [Member] | Non-Owner Occupied RE [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 48,310 |
Commercial [Member] | Non-Owner Occupied RE [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 29,243 |
Commercial [Member] | Construction [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 64,425 |
Commercial [Member] | Construction [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 64,425 |
Commercial [Member] | Construction [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | |
Commercial [Member] | Construction [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | |
Commercial [Member] | Business [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 333,049 |
Commercial [Member] | Business [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 328,371 |
Commercial [Member] | Business [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 1,530 |
Commercial [Member] | Business [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 3,148 |
Consumer [Member] | Real Estate [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 694,401 |
Consumer [Member] | Real Estate [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 684,923 |
Consumer [Member] | Real Estate [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 4,294 |
Consumer [Member] | Real Estate [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 5,184 |
Consumer [Member] | Home Equity [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 154,839 |
Consumer [Member] | Home Equity [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 148,933 |
Consumer [Member] | Home Equity [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 2,986 |
Consumer [Member] | Home Equity [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 2,920 |
Consumer [Member] | Construction [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 59,846 |
Consumer [Member] | Construction [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 59,846 |
Consumer [Member] | Construction [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | |
Consumer [Member] | Construction [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | |
Consumer [Member] | Other [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 27,519 |
Consumer [Member] | Other [Member] | Pass [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 27,365 |
Consumer [Member] | Other [Member] | Special Mention [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | 129 |
Consumer [Member] | Other [Member] | Substandard [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances classified by credit quality indicators and loan categories [Line Items] | |
Total | $ 25 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses (Details) - Schedule of loan balances by payment status - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | $ 612,901 | $ 488,965 |
Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | 862,579 | 666,833 |
Construction [Member] | ||
Commercial | ||
Total loan balances by payment | 109,726 | 64,425 |
Business [Member] | ||
Commercial | ||
Total loan balances by payment | 468,112 | 333,049 |
Real Estate [Member] | ||
Consumer | ||
Total loan balances by payment | 931,278 | 694,401 |
Home Equity [Member] | ||
Consumer | ||
Total loan balances by payment | 179,300 | 154,839 |
Construction [Member] | ||
Consumer | ||
Total loan balances by payment | 80,415 | 59,846 |
Other [Member] | ||
Consumer | ||
Total loan balances by payment | 29,052 | 27,519 |
Total loan balances by payment | 3,273,363 | 2,489,877 |
Accruing 30-59 Days Past Due [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 30-59 Days Past Due [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | 119 | |
Accruing 30-59 Days Past Due [Member] | Construction [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 30-59 Days Past Due [Member] | Business [Member] | ||
Commercial | ||
Total loan balances by payment | 24 | |
Accruing 30-59 Days Past Due [Member] | Real Estate [Member] | ||
Consumer | ||
Total loan balances by payment | 330 | 136 |
Accruing 30-59 Days Past Due [Member] | Home Equity [Member] | ||
Consumer | ||
Total loan balances by payment | 50 | 417 |
Accruing 30-59 Days Past Due [Member] | Construction [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Accruing 30-59 Days Past Due [Member] | Other [Member] | ||
Consumer | ||
Total loan balances by payment | 88 | 5 |
Total loan balances by payment | 611 | 558 |
Accruing 60-89 Days Past Due [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 60-89 Days Past Due [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | 757 | |
Accruing 60-89 Days Past Due [Member] | Construction [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 60-89 Days Past Due [Member] | Business [Member] | ||
Commercial | ||
Total loan balances by payment | 1 | |
Accruing 60-89 Days Past Due [Member] | Real Estate [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Accruing 60-89 Days Past Due [Member] | Home Equity [Member] | ||
Consumer | ||
Total loan balances by payment | 174 | |
Accruing 60-89 Days Past Due [Member] | Construction [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Accruing 60-89 Days Past Due [Member] | Other [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Total loan balances by payment | 758 | 174 |
Accruing 90 Days Or More Past Due [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 90 Days Or More Past Due [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 90 Days Or More Past Due [Member] | Construction [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 90 Days Or More Past Due [Member] | Business [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Accruing 90 Days Or More Past Due [Member] | Real Estate [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Accruing 90 Days Or More Past Due [Member] | Home Equity [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Accruing 90 Days Or More Past Due [Member] | Construction [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Accruing 90 Days Or More Past Due [Member] | Other [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Total loan balances by payment | ||
Nonaccrual Loans [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Nonaccrual Loans [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | 247 | 1,069 |
Nonaccrual Loans [Member] | Construction [Member] | ||
Commercial | ||
Total loan balances by payment | ||
Nonaccrual Loans [Member] | Business [Member] | ||
Commercial | ||
Total loan balances by payment | 182 | |
Nonaccrual Loans [Member] | Real Estate [Member] | ||
Consumer | ||
Total loan balances by payment | 1,099 | 1,750 |
Nonaccrual Loans [Member] | Home Equity [Member] | ||
Consumer | ||
Total loan balances by payment | 1,099 | 2,045 |
Nonaccrual Loans [Member] | Construction [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Nonaccrual Loans [Member] | Other [Member] | ||
Consumer | ||
Total loan balances by payment | ||
Total loan balances by payment | 2,627 | 4,864 |
Accruing Current [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | 612,901 | 488,965 |
Accruing Current [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total loan balances by payment | 861,456 | 665,764 |
Accruing Current [Member] | Construction [Member] | ||
Commercial | ||
Total loan balances by payment | 109,726 | 64,425 |
Accruing Current [Member] | Business [Member] | ||
Commercial | ||
Total loan balances by payment | 467,905 | 333,049 |
Accruing Current [Member] | Real Estate [Member] | ||
Consumer | ||
Total loan balances by payment | 929,849 | 692,515 |
Accruing Current [Member] | Home Equity [Member] | ||
Consumer | ||
Total loan balances by payment | 178,151 | 152,203 |
Accruing Current [Member] | Construction [Member] | ||
Consumer | ||
Total loan balances by payment | 80,415 | 59,846 |
Accruing Current [Member] | Other [Member] | ||
Consumer | ||
Total loan balances by payment | 28,964 | 27,514 |
Total loan balances by payment | $ 3,269,367 | $ 2,484,281 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses (Details) - Schedule of nonperforming assets, including nonaccruing TDRs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Nonperforming Assets Including Nonaccruing Tdrs [Abstract] | ||
Nonaccrual loans | $ 831 | $ 1,912 |
Nonaccruing TDRs | 1,796 | 2,952 |
Total nonaccrual loans, including nonaccruing TDRs | 2,627 | 4,864 |
Other real estate owned | ||
Total nonperforming assets | $ 2,627 | $ 4,864 |
Nonperforming assets as a percentage of: | ||
Total assets | 0.07% | 0.17% |
Gross loans | 0.08% | 0.20% |
Total loans over 90 days past due | $ 402 | $ 554 |
Loans over 90 days past due and still accruing | ||
Accruing troubled debt restructurings | $ 4,503 | $ 3,299 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses (Details) - Schedule of nonaccrual loans by major categories - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | ||
Commercial | ||
Total commercial | $ 114 | |
Consumer | ||
Total consumer | 194 | |
Total | 308 | |
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | ||
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | 114 | |
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | Construction [Member] | ||
Commercial | ||
Total commercial | ||
Consumer | ||
Total consumer | ||
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | Business [Member] | ||
Commercial | ||
Total commercial | ||
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | Real Estate [Member] | ||
Consumer | ||
Total consumer | ||
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | Home Equity [Member] | ||
Consumer | ||
Total consumer | 194 | |
CECL [Member] | Nonaccrual Loans With No Allowance [Member] | Other [Member] | ||
Consumer | ||
Total consumer | ||
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | ||
Commercial | ||
Total commercial | 315 | |
Consumer | ||
Total consumer | 2,004 | |
Total | 2,319 | |
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | ||
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | 133 | |
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | Construction [Member] | ||
Commercial | ||
Total commercial | ||
Consumer | ||
Total consumer | ||
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | Business [Member] | ||
Commercial | ||
Total commercial | 182 | |
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | Real Estate [Member] | ||
Consumer | ||
Total consumer | 1,099 | |
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | Home Equity [Member] | ||
Consumer | ||
Total consumer | 905 | |
CECL [Member] | Nonaccrual Loans With An Allowance [Member] | Other [Member] | ||
Consumer | ||
Total consumer | ||
CECL [Member] | Total Nonaccrual Loans [Member] | ||
Commercial | ||
Total commercial | 429 | |
Consumer | ||
Total consumer | 2,198 | |
Total | 2,627 | |
CECL [Member] | Total Nonaccrual Loans [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | ||
CECL [Member] | Total Nonaccrual Loans [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | 247 | |
CECL [Member] | Total Nonaccrual Loans [Member] | Construction [Member] | ||
Commercial | ||
Total commercial | ||
Consumer | ||
Total consumer | ||
CECL [Member] | Total Nonaccrual Loans [Member] | Business [Member] | ||
Commercial | ||
Total commercial | 182 | |
CECL [Member] | Total Nonaccrual Loans [Member] | Real Estate [Member] | ||
Consumer | ||
Total consumer | 1,099 | |
CECL [Member] | Total Nonaccrual Loans [Member] | Home Equity [Member] | ||
Consumer | ||
Total consumer | 1,099 | |
CECL [Member] | Total Nonaccrual Loans [Member] | Other [Member] | ||
Consumer | ||
Total consumer | ||
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | ||
Commercial | ||
Total commercial | $ 1,070 | |
Consumer | ||
Total consumer | 3,794 | |
Total | 4,864 | |
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | ||
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | Non-Owner Occupied RE [Member] | ||
Commercial | ||
Total commercial | 1,070 | |
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | Construction [Member] | ||
Commercial | ||
Total commercial | ||
Consumer | ||
Total consumer | ||
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | Business [Member] | ||
Commercial | ||
Total commercial | ||
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | Real Estate [Member] | ||
Consumer | ||
Total consumer | 1,750 | |
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | Home Equity [Member] | ||
Consumer | ||
Total consumer | 2,044 | |
Incurred Loss [Member] | Total Nonaccrual Loans [Member] | Other [Member] | ||
Consumer | ||
Total consumer |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans $ in Thousands | Dec. 31, 2021 USD ($) |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | $ 9,344 |
Impaired loans | 8,163 |
Impaired loans with no related allowance for loan losses | 5,263 |
Impaired loans with related allowance for loan losses | 2,900 |
Related allowance for loan losses | 836 |
Commercial [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 4,377 |
Impaired loans | 3,435 |
Impaired loans with no related allowance for loan losses | 1,531 |
Impaired loans with related allowance for loan losses | 1,904 |
Related allowance for loan losses | 623 |
Commercial [Member] | Construction [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | |
Impaired loans | |
Impaired loans with no related allowance for loan losses | |
Impaired loans with related allowance for loan losses | |
Related allowance for loan losses | |
Commercial [Member] | Owner occupied RE [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 1,261 |
Impaired loans | 1,261 |
Impaired loans with no related allowance for loan losses | 1,261 |
Impaired loans with related allowance for loan losses | |
Related allowance for loan losses | |
Commercial [Member] | Non-owner occupied RE [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 2,012 |
Impaired loans | 1,070 |
Impaired loans with no related allowance for loan losses | 270 |
Impaired loans with related allowance for loan losses | 800 |
Related allowance for loan losses | 171 |
Commercial [Member] | Business [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 1,104 |
Impaired loans | 1,104 |
Impaired loans with no related allowance for loan losses | |
Impaired loans with related allowance for loan losses | 1,104 |
Related allowance for loan losses | 452 |
Consumer [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 4,967 |
Impaired loans | 4,728 |
Impaired loans with no related allowance for loan losses | 3,732 |
Impaired loans with related allowance for loan losses | 996 |
Related allowance for loan losses | 213 |
Consumer [Member] | Construction [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | |
Impaired loans | |
Impaired loans with no related allowance for loan losses | |
Impaired loans with related allowance for loan losses | |
Related allowance for loan losses | |
Consumer [Member] | Real estate [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 2,638 |
Impaired loans | 2,561 |
Impaired loans with no related allowance for loan losses | 1,743 |
Impaired loans with related allowance for loan losses | 818 |
Related allowance for loan losses | 144 |
Consumer [Member] | Home equity [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 2,206 |
Impaired loans | 2,044 |
Impaired loans with no related allowance for loan losses | 1,989 |
Impaired loans with related allowance for loan losses | 55 |
Related allowance for loan losses | 55 |
Consumer [Member] | Other [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of key information for impaired loans [Line Items] | |
Unpaid Principal Balance | 123 |
Impaired loans | 123 |
Impaired loans with no related allowance for loan losses | |
Impaired loans with related allowance for loan losses | 123 |
Related allowance for loan losses | $ 14 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses (Details) - Schedule of average recorded investment and interest income recognized on impaired loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Average Recorded Investment [Member] | Owner occupied RE [Member] | ||
Commercial | ||
Average recorded investment total commercial | $ 1,387 | $ 2,423 |
Average Recorded Investment [Member] | Non-owner occupied RE [Member] | ||
Commercial | ||
Average recorded investment total commercial | 3,128 | 4,217 |
Average Recorded Investment [Member] | Construction [Member] | ||
Commercial | ||
Average recorded investment total commercial | ||
Average recorded investment, total consumer | 55 | 56 |
Average Recorded Investment [Member] | Business [Member] | ||
Commercial | ||
Average recorded investment total commercial | 2,218 | 2,306 |
Average Recorded Investment [Member] | Total Commercial [Member] | ||
Commercial | ||
Average recorded investment total commercial | 6,788 | 9,002 |
Average Recorded Investment [Member] | Real Estate [Member] | ||
Commercial | ||
Average recorded investment, total consumer | 3,641 | 3,372 |
Average Recorded Investment [Member] | Home Equity [Member] | ||
Commercial | ||
Average recorded investment, total consumer | 1,964 | 2,128 |
Average Recorded Investment [Member] | Other [Member] | ||
Commercial | ||
Average recorded investment, total consumer | 129 | 141 |
Average Recorded Investment [Member] | Total consumer [Member] | ||
Commercial | ||
Average recorded investment, total consumer | 5,734 | 5,641 |
Average Recorded Investment [Member] | Total gross loans [Member] | ||
Commercial | ||
Average recorded investment, total consumer | 12,522 | 14,643 |
Recognized Interest Income [Member] | Owner occupied RE [Member] | ||
Commercial | ||
Recognized interest income total commercial | 65 | 88 |
Recognized Interest Income [Member] | Non-owner occupied RE [Member] | ||
Commercial | ||
Recognized interest income total commercial | 182 | 221 |
Recognized Interest Income [Member] | Construction [Member] | ||
Commercial | ||
Recognized interest income total commercial | ||
Recognized interest income, total consumer | 6 | |
Recognized Interest Income [Member] | Business [Member] | ||
Commercial | ||
Recognized interest income total commercial | 62 | 243 |
Recognized Interest Income [Member] | Total Commercial [Member] | ||
Commercial | ||
Recognized interest income total commercial | 309 | 558 |
Recognized Interest Income [Member] | Real Estate [Member] | ||
Commercial | ||
Recognized interest income, total consumer | 98 | 170 |
Recognized Interest Income [Member] | Home Equity [Member] | ||
Commercial | ||
Recognized interest income, total consumer | 85 | 5 |
Recognized Interest Income [Member] | Other [Member] | ||
Commercial | ||
Recognized interest income, total consumer | 4 | 79 |
Recognized Interest Income [Member] | Total consumer [Member] | ||
Commercial | ||
Recognized interest income, total consumer | 187 | 254 |
Recognized Interest Income [Member] | Total gross loans [Member] | ||
Commercial | ||
Recognized interest income, total consumer | $ 496 | $ 812 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | $ 30,408 | $ 44,149 | $ 16,642 |
Provision for credit losses | 6,155 | (12,400) | 29,600 |
Loan charge-offs | (2,166) | (3,414) | |
Loan recoveries | 825 | 1,321 | |
Net loan recoveries (charge-offs) | (1,341) | (2,093) | |
Balance, end of period | 30,408 | 44,149 | |
Commercial [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 20,730 | 29,166 | 11,372 |
Provision for credit losses | (7,014) | 19,500 | |
Loan charge-offs | (2,018) | (2,911) | |
Loan recoveries | 596 | 1,205 | |
Net loan recoveries (charge-offs) | (1,422) | (1,706) | |
Balance, end of period | 20,730 | 29,166 | |
Consumer [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 9,678 | 14,983 | 5,270 |
Provision for credit losses | (5,386) | 10,100 | |
Loan charge-offs | (148) | (503) | |
Loan recoveries | 229 | 116 | |
Net loan recoveries (charge-offs) | 81 | (387) | |
Balance, end of period | 9,678 | 14,983 | |
Commercial & Consumer [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 30,408 | 44,149 | 16,642 |
Adjustment for CECL | 1,500 | ||
Provision for credit losses | 5,375 | (12,400) | 29,600 |
Loan charge-offs | (485) | (2,166) | (3,414) |
Loan recoveries | 1,841 | 825 | 1,321 |
Net loan recoveries (charge-offs) | 1,356 | (1,341) | (2,093) |
Balance, end of period | $ 38,639 | 30,408 | 44,149 |
Net recoveries to average loans (annualized) | (0.05%) | ||
Allowance for credit losses to gross loans | 1.18% | ||
Allowance for credit losses to nonperforming loans | 1,470.84% | ||
Owner occupied RE [Member] | Commercial [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | $ 4,700 | 8,092 | 2,782 |
Adjustment for CECL | (313) | ||
Provision for credit losses | 1,480 | (3,486) | 5,339 |
Loan charge-offs | (94) | ||
Loan recoveries | 94 | 65 | |
Net loan recoveries (charge-offs) | 94 | (29) | |
Balance, end of period | 5,867 | 4,700 | 8,092 |
Non-owner occupied RE [Member] | Commercial [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 10,518 | 12,050 | 4,305 |
Adjustment for CECL | 333 | ||
Provision for credit losses | (2,015) | (958) | 8,583 |
Loan charge-offs | (837) | (1,508) | |
Loan recoveries | 1,540 | 263 | 670 |
Net loan recoveries (charge-offs) | 1,540 | (574) | (838) |
Balance, end of period | 10,376 | 10,518 | 12,050 |
Construction [Member] | Commercial [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 625 | 1,154 | 541 |
Adjustment for CECL | 154 | ||
Provision for credit losses | 513 | (529) | 613 |
Loan charge-offs | |||
Loan recoveries | |||
Net loan recoveries (charge-offs) | |||
Balance, end of period | 1,292 | 625 | 1,154 |
Construction [Member] | Consumer [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 578 | 746 | 268 |
Adjustment for CECL | 130 | ||
Provision for credit losses | 185 | (168) | 478 |
Loan charge-offs | |||
Loan recoveries | |||
Net loan recoveries (charge-offs) | |||
Balance, end of period | 893 | 578 | 746 |
Business [Member] | Commercial [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 4,887 | 7,870 | 3,716 |
Adjustment for CECL | 1,057 | ||
Provision for credit losses | 1,764 | (2,041) | 4,993 |
Loan charge-offs | (55) | (1,181) | (1,309) |
Loan recoveries | 208 | 239 | 470 |
Net loan recoveries (charge-offs) | 153 | (942) | (839) |
Balance, end of period | 7,861 | 4,887 | 7,870 |
Real Estate [Member] | Consumer [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 7,083 | 10,482 | 3,308 |
Adjustment for CECL | (294) | ||
Provision for credit losses | 2,698 | (3,417) | 7,290 |
Loan charge-offs | (134) | ||
Loan recoveries | 18 | 18 | |
Net loan recoveries (charge-offs) | 18 | (116) | |
Balance, end of period | 9,487 | 7,083 | 10,482 |
Home Equity [Member] | Consumer [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 1,697 | 3,248 | 1,446 |
Adjustment for CECL | 438 | ||
Provision for credit losses | 663 | (1,613) | 2,032 |
Loan charge-offs | (339) | (139) | (299) |
Loan recoveries | 92 | 201 | 69 |
Net loan recoveries (charge-offs) | (247) | 62 | (230) |
Balance, end of period | 2,551 | 1,697 | 3,248 |
Other [Member] | Consumer [Member] | |||
Loans and Allowance for Credit Losses (Details) - Schedule of activity related to the allowance for credit losses [Line Items] | |||
Balance, beginning of period | 320 | 507 | 276 |
Adjustment for CECL | (5) | ||
Provision for credit losses | 87 | (188) | 272 |
Loan charge-offs | (91) | (9) | (70) |
Loan recoveries | 1 | 10 | 29 |
Net loan recoveries (charge-offs) | (90) | 1 | (41) |
Balance, end of period | $ 312 | $ 320 | $ 507 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for loan losses and recorded investment in loans by impairment methodology $ in Thousands | Dec. 31, 2021 USD ($) |
Allowance For Loan Losses [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for loan losses and recorded investment in loans by impairment methodology [Line Items] | |
Individually evaluated | $ 836 |
Collectively evaluated | 29,572 |
Total | 30,408 |
Recorded Investment In Loans [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for loan losses and recorded investment in loans by impairment methodology [Line Items] | |
Individually evaluated | 8,163 |
Collectively evaluated | 2,481,714 |
Total | 2,489,877 |
Commercial [Member] | Allowance For Loan Losses [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for loan losses and recorded investment in loans by impairment methodology [Line Items] | |
Individually evaluated | 623 |
Collectively evaluated | 20,107 |
Total | 20,730 |
Commercial [Member] | Recorded Investment In Loans [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for loan losses and recorded investment in loans by impairment methodology [Line Items] | |
Individually evaluated | 3,435 |
Collectively evaluated | 1,549,837 |
Total | 1,553,272 |
Consumer [Member] | Allowance For Loan Losses [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for loan losses and recorded investment in loans by impairment methodology [Line Items] | |
Individually evaluated | 213 |
Collectively evaluated | 9,465 |
Total | 9,678 |
Consumer [Member] | Recorded Investment In Loans [Member] | |
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for loan losses and recorded investment in loans by impairment methodology [Line Items] | |
Individually evaluated | 4,728 |
Collectively evaluated | 931,877 |
Total | $ 936,605 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses (Details) - Schedule of analysis of collateral-dependent loans $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commercial | |
Real estate | $ 545 |
Business assets | |
Other | |
Total | 545 |
Commercial [Member] | |
Commercial | |
Real estate | 144 |
Business assets | |
Other | |
Total | 144 |
Commercial [Member] | Owner occupied RE [Member] | |
Commercial | |
Real estate | |
Business assets | |
Other | |
Total | |
Commercial [Member] | Non-owners occupied RE [Member] | |
Commercial | |
Real estate | 114 |
Business assets | |
Other | |
Total | 114 |
Commercial [Member] | Construction [Member] | |
Commercial | |
Real estate | |
Business assets | |
Other | |
Total | |
Commercial [Member] | Business [Member] | |
Commercial | |
Real estate | 30 |
Business assets | |
Other | |
Total | 30 |
Consumer [Member] | |
Commercial | |
Real estate | 401 |
Business assets | |
Other | |
Total | 401 |
Consumer [Member] | Construction [Member] | |
Commercial | |
Real estate | |
Business assets | |
Other | |
Total | |
Consumer [Member] | Real Estate [Member] | |
Commercial | |
Real estate | 207 |
Business assets | |
Other | |
Total | 207 |
Consumer [Member] | Home Equity [Member] | |
Commercial | |
Real estate | 194 |
Business assets | |
Other | |
Total | 194 |
Consumer [Member] | Other [Member] | |
Commercial | |
Real estate | |
Business assets | |
Other | |
Total |
Loans and Allowance for Cred_16
Loans and Allowance for Credit Losses (Details) - Schedule of allowance for credit losses for unfunded loan commitments - Allowance for Credit Losses - Unfunded Loan Commitments [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Balance, beginning of period | |
Adjustment for adoption of CECL | 2,000 |
Provision for credit losses | 780 |
Balance, end of period | 2,780 |
Unfunded Loan Commitments | $ 878,324 |
Reserve for Unfunded Commitments to Unfunded Loan Commitments | 0.32% |
Troubled Debt Restructurings (D
Troubled Debt Restructurings (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Troubled Debt Restructurings (Details) [Line Items] | ||
Total sum of loans classified as troubled debt restructurings | $ 6,300,000 | $ 6,300,000 |
Specific allowance | 1,200,000 | |
One Consumer Real Estate Loan [Member] | Pre-Modification and Post-Modification [Member] | ||
Troubled Debt Restructurings (Details) [Line Items] | ||
Modification balance | 885,000 | |
Two Commercial Business Loans [Member] | Pre-Modification [Member] | ||
Troubled Debt Restructurings (Details) [Line Items] | ||
Modification balance | $ 1,100,000 | |
Two Consumer Real Estate Loans [Member] | Pre-Modification and Post-Modification [Member] | ||
Troubled Debt Restructurings (Details) [Line Items] | ||
Modification balance | 181,000 | |
Two Consumer Real Estate Loans [Member] | Pre-Modification [Member] | ||
Troubled Debt Restructurings (Details) [Line Items] | ||
Modification balance | 259,000 | |
Two Consumer Real Estate Loans [Member] | Post-Modification [Member] | ||
Troubled Debt Restructurings (Details) [Line Items] | ||
Modification balance | $ 262,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Oct. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Loss on sale of disposal of assets | $ 439,000 | ||
Gain on sale of columbia, south carolina offices | $ 180,000 | ||
Depreciation and amortization expense | $ 3,700,000 | $ 2,200,000 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of components of property and equipment - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding ROU assets | $ 75,597 | $ 65,726 |
ROU assets | 23,586 | 26,644 |
Total property and equipment | 99,183 | 92,370 |
Accumulated depreciation and amortization | (17,219) | (15,882) |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding ROU assets | 11,244 | 10,678 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding ROU assets | 54,454 | 22,150 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding ROU assets | 5,545 | 6,860 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding ROU assets | 20,422 | 11,589 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding ROU assets | 409 | 389 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding ROU assets | $ 742 | $ 29,942 |
Property and Equipment (Detai_3
Property and Equipment (Details) - Schedule of estimated useful lives of property and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Software [Member] | |
Property and Equipment (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Property and equipment, estimated useful life (in years) | 3 years |
Furniture and equipment [Member] | Minimum [Member] | |
Property and Equipment (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Property and equipment, estimated useful life (in years) | 5 years |
Furniture and equipment [Member] | Maximum [Member] | |
Property and Equipment (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Property and equipment, estimated useful life (in years) | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property and Equipment (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Property and equipment, estimated useful life (in years) | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property and Equipment (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Property and equipment, estimated useful life (in years) | 15 years |
Buildings [Member] | |
Property and Equipment (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Property and equipment, estimated useful life (in years) | 40 years |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Property and equipment | $ 23.6 | $ 26.6 |
Other liabilities | $ 25.8 | |
Other liabilities | $ 28 | |
Weighted average remaining life of the lease term | 6 years 10 months 20 days | 7 years 11 months 1 day |
Weighted average discount rate | 2.86% | 2.28% |
Operating lease costs | $ 2.7 | $ 3 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | |
2023 | $ 2,016 |
2024 | 2,068 |
2025 | 2,124 |
2026 | 2,177 |
2027 | 2,234 |
Thereafter | 22,203 |
Total undiscounted lease payments | 32,822 |
Discount effect of cash flows | 6,995 |
Total lease liability | $ 25,827 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - Schedule of activity of real estate acquired in settlement of loans portion of other real estate owned - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Activity Of Real Estate Acquired In Settlement Of Loans Portion Of Other Real Estate Owned Abstract | ||
Balance, beginning of year | $ 1,169 | |
Additions | 367 | |
Sales | (1,536) | |
Write-downs, net | ||
Balance, end of year |
Deposits (Details)
Deposits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits [Abstract] | |||
Time deposits greater than $250,000 | $ 374,800,000 | $ 84,400,000 | |
Time deposits obtained outside of primary market | 236,200,000 | ||
Interest expense on time deposits greater than $250,000 | $ 3,200,000 | $ 786,000 | $ 3,500,000 |
Deposits (Details) - Schedule o
Deposits (Details) - Schedule of detail in deposit accounts - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Detail In Deposit Accounts [Abstract] | ||
Noninterest bearing | $ 804,115 | $ 768,651 |
Interest bearing: | ||
NOW accounts | 318,030 | 401,788 |
Money market accounts | 1,506,418 | 1,201,099 |
Savings | 40,673 | 39,696 |
Time deposits | 464,628 | 152,592 |
Total deposits | $ 3,133,864 | $ 2,563,826 |
Deposits (Details) - Scheduled
Deposits (Details) - Scheduled maturities of certificates of deposit - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Scheduled Maturities of Certificates of Deposit [Abstract] | ||
2023 | $ 420,049 | |
2024 | 39,786 | |
2025 | 4,683 | |
2026 | 110 | |
Certificates of deposit | $ 464,628 | $ 152,592 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances and Other Borrowings (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Federal Home Loan Bank Advances and Other Borrowings (Details) [Line Items] | |
FHLB advances | $ 175 |
Variable rate | 4.57% |
Mortgage loans | $ 9.3 |
Maturity date | Feb. 16, 2023 |
FHLB [Member] | |
Federal Home Loan Bank Advances and Other Borrowings (Details) [Line Items] | |
FHLB advances | $ 1,050 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 22, 2005 | Jun. 23, 2003 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subordinated Debentures (Details) [Line Items] | |||||
Subordinated debentures | $ 36,214,000 | $ 36,106,000 | |||
Dodd-Frank Act prohibits, description | Dodd-Frank Act prohibit institutions that had more than $15 billion in assets on December 31, 2009 from including trust preferred securities as Tier 1 capital beginning in 2013, with one-third phased out over the two years ending in 2015. Financial institutions with less than $15 billion in total assets, such as the Bank, may continue to include their trust preferred securities issued prior to May 19, 2010 in Tier 1 capital, but cannot include in Tier 1 capital trust preferred securities issued after such date. | ||||
Fixed annual rate | 4.75% | ||||
Subordinate term | 10 years | ||||
Greenville First Statutory Trust One [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Trust preferred securities | $ 6,000,000 | ||||
Trust preferred securities maturity date | Jun. 26, 2033 | ||||
Floating interest rate of trust preferred securities | 7.82% | ||||
LIBOR rate | 3.10% | ||||
Proceeds from issuance trust preferred securities | $ 6,000,000 | ||||
Initial proceeds from capital investment in trust | 186,000 | ||||
Subordinated debentures | $ 6,200,000 | ||||
Greenville First Statutory Trust Two [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Trust preferred securities | $ 7,000,000 | ||||
Trust preferred securities maturity date | Dec. 22, 2035 | ||||
Floating interest rate of trust preferred securities | 6.17% | ||||
LIBOR rate | 1.44% | ||||
Proceeds from issuance trust preferred securities | $ 7,000,000 | ||||
Initial proceeds from capital investment in trust | 217,000 | ||||
Subordinated debentures | $ 7,200,000 | ||||
Subordinate Debt [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Aggregate principal amount of subordinated notes | $ 23,000,000 | ||||
Rate of interest of subordinated notes | 4.75% |
Unused Lines of Credit (Details
Unused Lines of Credit (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Unused Lines of Credit [Abstract] | |
Lines of credit to purchase federal funds | $ 118.5 |
Additional borrowings under FHLB | 515.8 |
Unsecured interest line of credit | $ 15 |
Secured overnight financing rate | 3.50% |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - Schedule of outstanding financial derivative instruments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage loan interest rate lock commitments [Member] | ||
Derivative Financial Instruments (Details) - Schedule of outstanding financial derivative instruments [Line Items] | ||
Derivative financial instruments, Notional amount | $ 6,793 | $ 32,478 |
Balance Sheet Location, description | Other assets | Other assets |
Derivative Asset/(Liability), Fair Value | $ 49 | $ 425 |
MBS forward sales commitments [Member] | ||
Derivative Financial Instruments (Details) - Schedule of outstanding financial derivative instruments [Line Items] | ||
Derivative financial instruments, Notional amount | $ 5,750 | $ 21,000 |
Balance Sheet Location, description | Other assets | Other liabilities |
Derivative Asset/(Liability), Fair Value | $ 27 | $ (41) |
Total derivative financial instruments [Member] | ||
Derivative Financial Instruments (Details) - Schedule of outstanding financial derivative instruments [Line Items] | ||
Derivative financial instruments, Notional amount | 12,543 | 53,478 |
Derivative Asset/(Liability), Fair Value | $ 76 | $ 384 |
Fair Value Accounting (Details)
Fair Value Accounting (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Percentage of loans collateralize by real estate | 85% |
Fair Value Accounting (Detail_2
Fair Value Accounting (Details) - Schedule of assets and liabilities measured at fair value on recurring basis - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities available for sale: | ||
Corporate bonds | $ 1,883 | $ 2,188 |
US treasuries | 871 | 992 |
US government agencies | 10,617 | 14,169 |
State and political subdivisions | 18,906 | 25,176 |
Asset-backed securities | 6,229 | 10,164 |
Mortgage-backed securities | 54,841 | 67,154 |
Mortgage loans held for sale | 3,917 | 13,556 |
Mortgage loan interest rate lock commitments | 49 | 425 |
MBS forward sales commitments | 27 | 41 |
Total assets measured at fair value on a recurring basis | 97,340 | 134,262 |
Total liabilities measured at fair value on a recurring basis | 41 | |
Securities available for sale: | ||
SBA securities | 438 | |
Level 1 [Member] | ||
Securities available for sale: | ||
Corporate bonds | ||
US treasuries | ||
US government agencies | ||
State and political subdivisions | ||
Asset-backed securities | ||
Mortgage-backed securities | ||
Mortgage loans held for sale | ||
Mortgage loan interest rate lock commitments | ||
MBS forward sales commitments | ||
Total assets measured at fair value on a recurring basis | ||
Total liabilities measured at fair value on a recurring basis | ||
Securities available for sale: | ||
SBA securities | ||
Level 2 [Member] | ||
Securities available for sale: | ||
Corporate bonds | 1,883 | 2,188 |
US treasuries | 871 | 992 |
US government agencies | 10,617 | 14,169 |
State and political subdivisions | 18,906 | 25,176 |
Asset-backed securities | 6,229 | 10,164 |
Mortgage-backed securities | 54,841 | 67,154 |
Mortgage loans held for sale | 3,917 | 13,556 |
Mortgage loan interest rate lock commitments | 49 | 425 |
MBS forward sales commitments | 27 | 41 |
Total assets measured at fair value on a recurring basis | 97,340 | 134,262 |
Total liabilities measured at fair value on a recurring basis | 41 | |
Securities available for sale: | ||
SBA securities | 438 | |
Level 3 [Member] | ||
Securities available for sale: | ||
Corporate bonds | ||
US treasuries | ||
US government agencies | ||
State and political subdivisions | ||
Asset-backed securities | ||
Mortgage-backed securities | ||
Mortgage loans held for sale | ||
Mortgage loan interest rate lock commitments | ||
MBS forward sales commitments | ||
Total assets measured at fair value on a recurring basis | ||
Total liabilities measured at fair value on a recurring basis | ||
Securities available for sale: | ||
SBA securities |
Fair Value Accounting (Detail_3
Fair Value Accounting (Details) - Schedule of assets and liabilities measured at fair value on nonrecurring basis - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | ||
Impaired loans | $ 4,500 | $ 7,327 |
Total assets measured at fair value on a nonrecurring basis | 4,500 | 7,327 |
Level 1 [Member] | ||
Assets | ||
Impaired loans | ||
Total assets measured at fair value on a nonrecurring basis | ||
Level 2 [Member] | ||
Assets | ||
Impaired loans | 429 | 5,262 |
Total assets measured at fair value on a nonrecurring basis | 429 | 5,262 |
Level 3 [Member] | ||
Assets | ||
Impaired loans | 4,071 | 2,065 |
Total assets measured at fair value on a nonrecurring basis | $ 4,071 | $ 2,065 |
Fair Value Accounting (Detail_4
Fair Value Accounting (Details) - Schedule of unobservable inputs used in the fair value measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation Technique | Appraised Value/ Discounted Cash Flows |
Significant Unobservable Inputs | Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal |
Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Range of Inputs | 0% |
Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Range of Inputs | 25% |
Fair Value Accounting (Detail_5
Fair Value Accounting (Details) - Schedule of estimated fair values of the company's financial instruments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Financial Assets: | |||
Other investments, at cost, Carrying Amount | $ 10,833 | $ 4,021 | |
Other investments, at cost, Fair Value | 10,833 | 4,021 | |
Loans, Carrying Amount | [1] | 3,227,455 | 2,451,306 |
Loans, Fair Value | [1] | 3,057,891 | 2,422,621 |
Financial Liabilities: | |||
Deposits, Carrying Amount | 3,133,865 | 2,563,826 | |
Deposits, Fair Value | 2,717,900 | 2,327,055 | |
Subordinated debentures, Carrying Amount | 36,214 | 36,106 | |
Subordinated debentures, Fair Value | 39,885 | 33,936 | |
Level 1 [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | |||
Loans, Fair Value | [1] | ||
Financial Liabilities: | |||
Deposits, Fair Value | |||
Subordinated debentures, Fair Value | |||
Level 2 [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | |||
Loans, Fair Value | [1] | ||
Financial Liabilities: | |||
Deposits, Fair Value | 2,717,900 | 2,327,055 | |
Subordinated debentures, Fair Value | 39,885 | 33,936 | |
Level 3 [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | 10,833 | 4,021 | |
Loans, Fair Value | [1] | 3,057,891 | 2,422,621 |
Financial Liabilities: | |||
Deposits, Fair Value | |||
Subordinated debentures, Fair Value | |||
[1]Carrying amount is net of the allowance for credit losses and individually evaluated loans. |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per common share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 131,433 | 9,000 | 318,825 |
Earnings Per Common Share (De_2
Earnings Per Common Share (Details) - Schedule of earnings per share calculation - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income (in Dollars) | $ 29,115 | $ 46,711 | $ 18,328 |
Net income available to common shareholders (in Dollars) | $ 29,115 | $ 46,711 | $ 18,328 |
Denominator: | |||
Weighted-average common shares outstanding - basic | 7,958,294 | 7,843,692 | 7,718,615 |
Common stock equivalents | 113,396 | 145,288 | 105,599 |
Weighted-average common shares outstanding - diluted | 8,071,690 | 7,988,980 | 7,824,214 |
Earnings per common share: | |||
Basic (in Dollars per share) | $ 3.66 | $ 5.96 | $ 2.37 |
Diluted (in Dollars per share) | $ 3.61 | $ 5.85 | $ 2.34 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies (Details) [Line Items] | |
Period of Employment agreement | 2 years |
Employment agreement description | These agreements also include a) an incentive program, b) a stock option plan, c) a one-year non-compete agreement upon termination and a severance payment equal to one year of compensation. |
Aggregate commitment amount | $ 3.7 |
Total commitments | $ 1.7 |
Chief Executive Officer [Member] | |
Commitments and Contingencies (Details) [Line Items] | |
Period of Employment agreement | 3 years |
Vice President [Member] | |
Commitments and Contingencies (Details) [Line Items] | |
Number of executive officers | 14 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of income tax expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income taxes: | |||
Federal | $ 8,482 | $ 10,414 | $ 10,244 |
State | 1,273 | 2,088 | 841 |
Total current tax expense | 9,755 | 12,502 | 11,085 |
Deferred income tax expense (benefit) | (757) | 1,590 | (5,594) |
Income tax expense | $ 8,998 | $ 14,092 | $ 5,491 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of taxes computed using the statutory tax rate - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Taxes Computed Using the Statutory Tax Rate [Abstract] | |||
Tax expense at statutory rate | $ 8,004 | $ 12,768 | $ 5,002 |
Effect of state income taxes, net of federal benefit | 1,006 | 1,649 | 664 |
Exempt income | (27) | (43) | (27) |
Effect of stock-based compensation | 42 | (115) | (30) |
Other | (27) | (167) | (118) |
Income tax expense | $ 8,998 | $ 14,092 | $ 5,491 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of components of the deferred tax assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for credit losses | $ 8,114 | $ 6,386 |
Reserve for unfunded commitments | 584 | |
Unrealized loss on securities available for sale | 3,565 | 197 |
Net deferred loan fees | 1,537 | 1,054 |
Deferred compensation | 1,762 | 1,930 |
Lease liabilities | 5,424 | 5,883 |
Other | 393 | 260 |
Deferred tax assets, gross | 21,379 | 15,710 |
Deferred tax liabilities: | ||
Property and equipment | 3,561 | 1,419 |
Hedging transactions | 27 | 151 |
Prepaid expenses | 316 | 148 |
ROU assets | 4,953 | 5,595 |
Deferred tax liabilities, gross | 8,857 | 7,313 |
Net deferred tax asset | $ 12,522 | $ 8,397 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions (Details) [Line Items] | ||
Monthly payments of land lease by company | $ 9,120 | |
Payments to director | $ 300,000 | |
Rent received | 79,000 | 104,000 |
Payment to tenant | 86,000 | |
Directors Affiliates and Executive Officers [Member] | ||
Related Party Transactions (Details) [Line Items] | ||
Deposits by related parties | $ 6,500,000 | $ 11,800,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of loan transactions with directors and executive officers, including their affiliates - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Summary of Loan Transactions with Directors and Executive Officers Including their Affiliates [Abstract] | ||
Balance, beginning of year | $ 8,790 | $ 5,790 |
New loans | 21,010 | 11,629 |
Less loan payments | (12,583) | (8,629) |
Balance, end of year | $ 17,217 | $ 8,790 |
Financial Instruments With Of_2
Financial Instruments With Off-Balance Sheet Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial Instruments With Off-Balance Sheet Risk [Abstract] | ||
Unfunded commitments | $ 878.3 | $ 618.7 |
Fixed rates | 318.9 | 205.4 |
Variable rates | 559.4 | 413.3 |
Commitment amount | $ 14.3 | $ 10.2 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Profit Sharing and Four Hundred One K Plan[Member] | |||
Employee Benefit Plan (Details) [Line Items] | |||
Defined benefit plan, annual cost | $ 995,000 | $ 905,000 | $ 881,000 |
Supplemental Executive Retirement Plan [Member] | |||
Employee Benefit Plan (Details) [Line Items] | |||
Defined benefit plan, annual cost | 1,000,000 | $ 1,600,000 | |
Number of executive officers | 22 | ||
Accrued benefit obligation | $ 8,400,000 | $ 9,200,000 | |
Reversal of expenses | $ 284,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Mar. 17, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 12, 2020 | May 17, 2016 | Mar. 15, 2016 | |
Stock-Based Compensation (Details) [Line Items] | |||||||
Number of stock option available for grant (in Shares) | 370,824 | 422,550 | 136,339 | ||||
Unrecognized compensation cost | $ 1.1 | ||||||
Recognized weighted average period | 1 year 10 months 24 days | ||||||
Fair value of stock option grants | $ 1.1 | $ 1.1 | $ 1.2 | ||||
Two Thousand Ten Incentive Plan [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Number of stock option available for grant (in Shares) | 566,025 | ||||||
Adjusted percentage of stock dividends | 10% | ||||||
Two Thousand Sixteen Equity Incentive Plan [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Number of stock option available for grant (in Shares) | 370,824 | 50,000 | 400,000 | ||||
Two Thousand Twenty Equity Incentive Plan [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Number of stock option available for grant (in Shares) | 450,000 | 450,000 | |||||
Option expiration period | 10 years | ||||||
Restricted Stock Plan [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Number of stock option available for grant (in Shares) | 370,824 | ||||||
Unrecognized compensation cost | $ 3.3 | ||||||
Recognized weighted average period | 3 years 1 month 6 days | ||||||
Stock Compensation Plan [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Aggregate intrinsic value outstanding | $ 4.9 | 13.3 | |||||
Aggregate intrinsic value options exercisable at year-end | $ 3.9 | $ 7.9 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Stock Based Compensation Expense [Abstract] | |||
Stock option expense | $ 927 | $ 1,148 | $ 1,017 |
Restricted stock grant expense | 1,099 | 499 | 380 |
Total stock-based compensation expense | $ 2,026 | $ 1,647 | $ 1,397 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of the status of the stock option plan and changes - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of the status of the stock option plan and changes [Abstract] | |||
Shares, Outstanding at beginning of year | 464,724 | 495,195 | 541,414 |
Weighted average exercise price, Outstanding at beginning of year | $ 33.97 | $ 29.93 | $ 26.65 |
Shares, Outstanding at end of year | 427,224 | 464,724 | 495,195 |
Weighted average exercise price, Outstanding at end of year | $ 34.32 | $ 33.97 | $ 29.93 |
Weighted Average Remaining Contractual Life, Outstanding at end of year | 5 years 8 months 12 days | 6 years 7 months 6 days | 6 years 4 months 24 days |
Shares, options exercisable at year-end | 287,902 | 239,340 | 287,548 |
Weighted average exercise price, Options exercisable at year-end | $ 32.35 | $ 29.68 | $ 24.93 |
Weighted Average Remaining Contractual Life, Options exercisable at year-end | 4 years 9 months 18 days | 5 years | 5 years |
Weighted average exercise price, Weighted average fair value of options granted during the year | $ 16.4 | $ 11.37 | |
Shares, Shares available for grant | 370,824 | 422,550 | 136,339 |
Shares, Granted | 121,000 | 101,700 | |
Weighted average exercise price, Granted | $ 40.45 | $ 37.77 | |
Shares, Exercised | (32,375) | (127,871) | (93,870) |
Weighted average exercise price, Exercised | $ 27.94 | $ 23.56 | $ 14.79 |
Shares, Forfeited or expired | (5,125) | (23,600) | (54,049) |
Weighted average exercise price, Forfeited or expired | $ 43.14 | $ 38.88 | $ 38.15 |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details) - Schedule of assumptions used | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Assumptions Used [Abstract] | |||
Dividend yield | |||
Expected life | 7 years | 7 years | |
Expected volatility | 38.48% | 25.51% | |
Risk-free interest rate | 0.74% | 1.29% |
Stock-Based Compensation (Det_5
Stock-Based Compensation (Details) - Schedule of the status of the company's non vested restricted stock and changes - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of the status of the Company's non vested restricted stock and changes [Abstract] | |||
Restricted Shares, Nonvested at beginning of year | 41,699 | 26,099 | 32,825 |
Weighted Average Grant-Date Fair Value, Nonvested at beginning of year | $ 44.71 | $ 38.05 | $ 34.78 |
Restricted Shares, Granted | 53,376 | 26,450 | 13,200 |
Weighted Average Grant-Date Fair Value, Granted | $ 56.25 | $ 48.56 | $ 39.87 |
Restricted Shares, Vested | (14,213) | (9,600) | (14,051) |
Weighted Average Grant-Date Fair Value, Vested | $ 43.26 | $ 38.03 | $ 32.06 |
Restricted Shares, Forfeited | (525) | (1,250) | (5,875) |
Weighted Average Grant-Date Fair Value, Forfeited | $ 61.14 | $ 38.56 | $ 37.74 |
Restricted Shares, Nonvested at end of year | 80,337 | 41,699 | 26,099 |
Weighted Average Grant-Date Fair Value, Nonvested at end of year | $ 52.53 | $ 44.71 | $ 38.05 |
Regulatory Matters (Details)
Regulatory Matters (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Matters (Details) [Line Items] | |
Capital requirements ratio, description | The capital rules require banks and bank holding companies to maintain a minimum total risked-based capital ratio of at least 8%, a total Tier 1 capital ratio of at least 6%, a minimum common equity Tier 1 capital ratio of at least 4.5%, and a leverage ratio of at least 4%. Bank holding companies and banks are also required to hold a capital conservation buffer of common equity Tier 1 capital of 2.5% to avoid limitations on capital distributions and discretionary executive compensation payments. The capital conservation buffer was phased in incrementally over time, becoming fully effective on January 1, 2019, and consists of an additional amount of common equity equal to 2.5% of risk-weighted assets. |
Well Capitalized [Member] | |
Regulatory Matters (Details) [Line Items] | |
Capital requirements ratio, description | To be considered “well-capitalized” for purposes of certain rules and prompt corrective action requirements, the Bank must maintain a minimum total risked-based capital ratio of at least 10%, a total Tier 1 capital ratio of at least 8%, a common equity Tier 1 capital ratio of at least 6.5%, and a leverage ratio of at least 5%. As of December 31, 2022, our capital ratios exceed these ratios and we remain “well capitalized.” |
Regulatory Matters (Details) -
Regulatory Matters (Details) - Schedule of capital amounts and ratios of the Bank and the Company and the regulatory minimum requirements - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk weighted assets) Amount | $ 366,988 | $ 331,052 |
Total Capital (to risk weighted assets) Actual Ratio | 12.45% | 14.36% |
Total Capital (to risk weighted assets) For capital adequacy purposes minimum | $ 235,892 | $ 184,418 |
Total Capital (to risk weighted assets) For capital adequacy purposes minimum, Ratio | 8% | 8% |
Total Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum | $ 294,865 | $ 230,522 |
Total Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum, Ratio | 10% | 10% |
Tier 1 Capital (to risk weighted assets) Amount | $ 330,108 | $ 302,217 |
Tier 1 Capital (to risk weighted assets) Actual Ratio | 11.20% | 13.11% |
Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum | $ 176,919 | $ 138,313 |
Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum, Ratio | 6% | 6% |
Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum | $ 235,892 | $ 184,418 |
Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum, Ratio | 8% | 8% |
Common Equity Tier 1 Capital (to risk weighted assets) Amount | $ 330,108 | $ 302,217 |
Common Equity Tier 1 Capital (to risk weighted assets) Actual Ratio | 11.20% | 13.11% |
Common Equity Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum | $ 132,689 | $ 103,735 |
Common Equity Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum | $ 191,662 | $ 149,839 |
Common Equity Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to average assets) Amount | $ 330,108 | $ 302,217 |
Tier 1 Capital (to average assets) Actual Ratio | 9.43% | 10.55% |
Tier 1 Capital (to average assets) For capital adequacy purposes minimum | $ 140,040 | $ 114,537 |
Tier 1 Capital (to average assets) For capital adequacy purposes minimum, Ratio | 4% | 4% |
Tier 1 Capital (to average assets) To be well capitalized under prompt corrective action provisions minimum | $ 175,050 | $ 143,172 |
Tier 1 Capital (to average assets) To be well capitalized under prompt corrective action provisions minimum, Ratio | 5% | 5% |
Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk weighted assets) Amount | $ 380,802 | $ 343,476 |
Total Capital (to risk weighted assets) Actual Ratio | 12.91% | 14.90% |
Total Capital (to risk weighted assets) For capital adequacy purposes minimum | $ 235,892 | $ 184,418 |
Total Capital (to risk weighted assets) For capital adequacy purposes minimum, Ratio | 8% | 8% |
Total Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum | ||
Total Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum, Ratio | ||
Tier 1 Capital (to risk weighted assets) Amount | $ 320,922 | $ 291,641 |
Tier 1 Capital (to risk weighted assets) Actual Ratio | 10.88% | 12.65% |
Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum | $ 176,919 | $ 138,313 |
Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum, Ratio | 6% | 6% |
Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum | ||
Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum, Ratio | ||
Common Equity Tier 1 Capital (to risk weighted assets) Amount | $ 307,922 | $ 278,641 |
Common Equity Tier 1 Capital (to risk weighted assets) Actual Ratio | 10.44% | 12.09% |
Common Equity Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum | $ 132,689 | $ 103,735 |
Common Equity Tier 1 Capital (to risk weighted assets) For capital adequacy purposes minimum, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum | ||
Common Equity Tier 1 Capital (to risk weighted assets) To be well capitalized under prompt corrective action provisions minimum, Ratio | ||
Tier 1 Capital (to average assets) Amount | $ 320,922 | $ 291,641 |
Tier 1 Capital (to average assets) Actual Ratio | 9.17% | 10.18% |
Tier 1 Capital (to average assets) For capital adequacy purposes minimum | $ 140,057 | $ 114,555 |
Tier 1 Capital (to average assets) For capital adequacy purposes minimum, Ratio | 4% | 4% |
Tier 1 Capital (to average assets) To be well capitalized under prompt corrective action provisions minimum | ||
Tier 1 Capital (to average assets) To be well capitalized under prompt corrective action provisions minimum, Ratio |
Parent Company Financial Info_3
Parent Company Financial Information (Details) - Schedule of condensed financial information of Southern First Bancshares, Inc. (parent company only) - Parent Company [Member] $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Assets | |||
Cash and cash equivalents | $ 13,882 | $ 12,379 | |
Investment in subsidiaries | 317,102 | 301,880 | |
Other assets | 21 | 21 | |
Total assets | 331,005 | 314,280 | |
Liabilities and Shareholders’ Equity | |||
Accounts payable and accrued expenses | 279 | 274 | |
Subordinated debentures | 36,214 | 36,105 | |
Shareholders’ equity | 294,512 | 277,901 | |
Total liabilities and shareholders’ equity | 331,005 | 314,280 | |
Revenues | |||
Interest income | 20 | 17 | $ 17 |
Total revenue | 20 | 17 | 17 |
Expenses | |||
Interest expense | 1,730 | 1,523 | 1,708 |
Other expenses | 240 | 285 | 283 |
Total expenses | 1,970 | 1,808 | 1,991 |
Income tax benefit | 409 | 376 | 415 |
Loss before equity in undistributed net income of subsidiaries | (1,541) | (1,415) | (1,559) |
Equity in undistributed net income of subsidiaries | 30,656 | 48,126 | 19,887 |
Net income | 29,115 | 46,711 | 18,328 |
Operating activities | |||
Net income | 29,115 | 46,711 | 18,328 |
Adjustments to reconcile net income to cash provided by (used for) operating activities | |||
Equity in undistributed net income of subsidiaries | (30,656) | (48,126) | (19,887) |
Compensation expense related to stock options and restricted stock grants | 2,026 | 1,647 | 1,397 |
(Increase) decrease in other assets | 8 | (23) | |
Increase (decrease) in accounts payable and accrued expenses | 113 | 108 | 63 |
Net cash provided by (used for) operating activities | 598 | 348 | (122) |
Investing activities | |||
Investment in subsidiaries, net | |||
Net cash used for investing activities | |||
Financing activities | |||
Issuance of common stock | |||
Proceeds from the exercise of stock options and warrants | 905 | 3,012 | 1,388 |
Net cash provided by financing activities | 905 | 3,012 | 1,388 |
Net increase in cash and cash equivalents | 1,503 | 3,360 | 1,266 |
Cash and cash equivalents, beginning of year | 12,379 | 9,019 | 7,753 |
Cash and cash equivalents, end of year | $ 13,882 | $ 12,379 | $ 9,019 |
Selected Condensed Quarterly _3
Selected Condensed Quarterly Financial Data (Unaudited) (Details) - Schedule of selected quarterly financial information - Quarterly Financial Information [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Selected Condensed Quarterly Financial Data (Unaudited) (Details) - Schedule of selected quarterly financial information [Line Items] | ||||||||
Interest income | $ 35,026 | $ 30,934 | $ 27,238 | $ 24,464 | $ 24,137 | $ 23,486 | $ 22,731 | $ 22,813 |
Interest expense | 10,907 | 5,480 | 2,354 | 1,300 | 1,280 | 1,314 | 1,301 | 1,540 |
Net interest income | 24,119 | 25,454 | 24,884 | 23,164 | 22,857 | 22,172 | 21,430 | 21,273 |
Provision for credit losses | 2,325 | 950 | 1,775 | 1,105 | (4,200) | (6,000) | (1,900) | (300) |
Noninterest income | 1,707 | 2,680 | 2,265 | 2,927 | 3,336 | 4,239 | 3,622 | 5,904 |
Noninterest expenses | 16,413 | 16,046 | 15,788 | 14,685 | 14,734 | 14,039 | 13,495 | 14,162 |
Income before income tax expense | 7,088 | 11,138 | 9,586 | 10,301 | 15,659 | 18,372 | 13,457 | 13,315 |
Income tax expense | 1,596 | 2,725 | 2,346 | 2,331 | 3,654 | 4,355 | 3,134 | 2,949 |
Net income available to common shareholders | $ 5,492 | $ 8,413 | $ 7,240 | $ 7,970 | $ 12,005 | $ 14,017 | $ 10,323 | $ 10,366 |
Earnings per common share | ||||||||
Basic (in Dollars per share) | $ 0.69 | $ 1.06 | $ 0.91 | $ 1 | $ 1.52 | $ 1.78 | $ 1.32 | $ 1.33 |
Diluted (in Dollars per share) | $ 0.68 | $ 1.04 | $ 0.9 | $ 0.98 | $ 1.49 | $ 1.75 | $ 1.29 | $ 1.31 |
Weighted average common shares outstanding | ||||||||
Basic (in Shares) | 7,971 | 7,972 | 7,958 | 7,932 | 7,877 | 7,874 | 7,848 | 7,775 |
Diluted (in Shares) | 8,072 | 8,065 | 8,055 | 8,096 | 8,057 | 8,001 | 7,988 | 7,909 |