Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Major classifications of loans

Major classifications of loans (net of deferred loan fees of $257,281 and $488,481 at June 30, 2022 and December 31, 2021, respectively) are shown in the table below.

	June 30, 2022			December 31, 2021
Commercial	$	50,891,563		$	45,804,434
Commercial real estate:
Construction		17,169,667			12,054,095
Other		166,328,808			165,719,078
Consumer:
Real estate		77,626,604			71,307,488
Other		3,630,394			3,768,531
Paycheck Protection Program		888,712			7,978,603
		316,535,748			306,632,229
Allowance for loan losses		(4,306,865	)		(4,376,987	)
Loans, net	$	312,228,883		$	302,255,242

The following tables illustrate credit quality by class and internally assigned grades at June 30, 2022 and December 31, 2021.

The following tables illustrate credit quality by class and internally assigned grades at June 30, 2022 and December 31, 2021. “Pass” includes loans internally graded as excellent, good and satisfactory.

June 30, 2022
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Pass	$	48,579,673	$	16,745,550	$	160,870,231	$	72,964,730	$	3,345,367	$	888,712	$	303,394,263
Watch		894,161		424,117		3,274,081		4,137,673		228,113		—		8,958,145
OAEM		94,052		—		975,783		274,445		17,875		—		1,362,155
Substandard		1,323,677		—		1,208,713		249,756		39,039		—		2,821,185
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
Total	$	50,891,563	$	17,169,667	$	166,328,808	$	77,626,604	$	3,630,394	$	888,712	$	316,535,748

December 31, 2021
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Pass	$	43,853,889	$	11,616,118	$	159,825,281	$	69,920,347	$	3,565,716	$	7,978,603	$	296,759,954
Watch		450,319		437,977		3,082,408		862,938		133,418		—		4,967,060
OAEM		36,749		—		1,158,268		274,445		29,244		—		1,498,706
Substandard		1,463,477		—		1,653,121		249,758		40,153		—		3,406,509
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
Total	$	45,804,434	$	12,054,095	$	165,719,078	$	71,307,488	$	3,768,531	$	7,978,603	$	306,632,229

The following tables include an aging analysis of the recorded investment in loans segregated by class.

The following tables include an aging analysis of the recorded investment in loans segregated by class.

June 30, 2022
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment ≥ 90 Days and Accruing
Commercial	$	—	$	—	$	68,104	$	68,104	$	50,823,459	$	50,891,563	$	—
Commercial Real Estate Construction		—		—		—		—		17,169,667		17,169,667		—
Commercial Real Estate Other		117,335		735,464		616,858		1,469,657		164,859,151		166,328,808		—
Consumer Real Estate		—		—		—		—		77,626,604		77,626,604		—
Consumer Other		176		—		—		176		3,630,218		3,630,394		—
Paycheck Protection Program		—		—		—		—		888,712		888,712		—
Total	$	117,511	$	735,464	$	684,962	$	1,537,937	$	314,997,811	$	316,535,748	$	—

December 31, 2021
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment ≥ 90 Days and Accruing
Commercial	$	88,659	$	—	$	—	$	88,659	$	45,715,775	$	45,804,434	$	—
Commercial Real Estate Construction		—		—		—		—		12,054,095		12,054,095		—
Commercial Real Estate Other		59,269		288,464		337,490		685,223		165,033,855		165,719,078		—
Consumer Real Estate		—		—		—		—		71,307,488		71,307,488		—
Consumer Other		23,971		—		—		23,971		3,744,560		3,768,531		—
Paycheck Protection Program		—		—		—		—		7,978,603		7,978,603		—
Total	$	171,899	$	288,464	$	337,490	$	797,853	$	305,834,376	$	306,632,229	$	—

The following table summarizes the balances of non-accrual loans:

The following table summarizes the balances of non-accrual loans:

	June 30, 2022		December 31, 2021
Commercial	$	68,104	$	178,975
Commercial Real Estate Construction		—		—
Commercial Real Estate Other		616,858		625,953
Consumer Real Estate		—		—
Consumer Other		8,351		9,686
Paycheck Protection Program		—		—
Total	$	693,313	$	814,614

The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and six months ended June 30, 2022 and 2021.

The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and six months ended June 30, 2022 and 2021. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. 

Three Months Ended June 30, 2022
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other			Consumer Real Estate			Consumer Other			Paycheck Protection Program			Total
Allowance for Loan Losses:
Beginning balance	$	788,093	$	203,568	$	2,294,010		$	919,972		$	98,859		$	—		$	4,304,502
Charge-offs		—		—		—			—			—			—			—
Recoveries		—		—		—			—			2,024			339			2,363
Provisions		94,901		26,802		(83,699	)		(29,588	)		(8,077	)		(339	)		—
Ending balance	$	882,994	$	230,370	$	2,210,311		$	890,384		$	92,806		$	—		$	4,306,865

Six Months Ended June 30, 2022
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other			Consumer Real Estate			Consumer Other			Paycheck Protection Program			Total
Allowance for Loan Losses:
Beginning balance	$	795,689	$	175,493	$	2,376,306		$	924,784		$	104,715		$	—		$	4,376,987
Charge-offs		—		—		—			(2,035	)		—			(10	)		(2,045	)
Recoveries		—		—		—			—			6,224			699			6,923
Provisions		87,305		54,877		(165,995	)		(32,365	)		(18,133	)		(689	)		(75,000	)
Ending balance	$	882,994	$	230,370	$	2,210,311		$	890,384		$	92,806		$	—		$	4,306,865

Three Months Ended June 30, 2021
	Commercial			Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate			Consumer Other			Paycheck Protection Program			Total
Allowance for Loan Losses:
Beginning balance	$	902,882		$	144,545	$	2,077,769	$	1,052,160		$	118,809		$	—		$	4,296,165
Charge-offs		—			—		—		—			(3,288	)		(1,786	)		(5,074	)
Recoveries		10,584			—		—		—			4,628			—			15,212
Provisions		(111,918	)		9,731		128,446		(26,654	)		(1,391	)		1,786			—
Ending balance	$	801,548		$	154,276	$	2,206,215	$	1,025,506		$	118,758		$	—		$	4,306,303

Six  Months Ended June 30, 2021
	Commercial			Commercial Real Estate Construction			Commercial Real Estate Other		Consumer Real Estate		Consumer Other			Paycheck Protection Program			Total
Allowance for Loan Losses:
Beginning balance	$	1,029,310		$	199,266		$	1,909,121	$	925,077	$	122,920		$	—		$	4,185,694
Charge-offs		—			—			—		—		(11,440	)		(7,976	)		(19,416	)
Recoveries		10,584			—			—		—		9,441			—			20,025
Provisions		(238,346	)		(44,990	)		297,094		100,429		(2,163	)		7,976			120,000
Ending balance	$	801,548		$	154,276		$	2,206,215	$	1,025,506	$	118,758		$	—		$	4,306,303

The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated.

The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated.

	June 30, 2022
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Allowance for Loan Losses
Individually evaluated for impairment	$	247,079	$	—	$	—	$	—	$	39,039	$	—	$	286,118
Collectively evaluated for impairment		635,915		230,370		2,210,311		890,384		53,767		—		4,020,747
Total Allowance for Loan Losses	$	882,994	$	230,370	$	2,210,311	$	890,384	$	92,806	$	—	$	4,306,865
Loans Receivable
Individually evaluated for impairment	$	1,391,779	$	—	$	1,208,713	$	249,758	$	39,039	$	—	$	2,889,289
Collectively evaluated for impairment		49,499,784		17,169,667		165,120,095		77,376,846		3,591,355		888,712		313,646,459
Total Loans Receivable	$	50,891,563	$	17,169,667	$	166,328,808	$	77,626,604	$	3,630,394	$	888,712	$	316,535,748

	December 31, 2021
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Allowance for Loan Losses
Individually evaluated for impairment	$	179,988	$	—	$	—	$	—	$	40,153	$	—	$	220,141
Collectively evaluated for impairment		615,701		175,493		2,376,306		924,784		64,562		—		4,156,846
Total Allowance for Loan Losses	$	795,689	$	175,493	$	2,376,306	$	924,784	$	104,715	$	—	$	4,376,987
Loans Receivable
Individually evaluated for impairment	$	1,463,477	$	—	$	1,653,121	$	249,758	$	40,153	$	—	$	3,406,509
Collectively evaluated for impairment		44,340,957		12,054,095		164,065,957		71,057,730		3,728,378		7,978,603		303,225,720
Total Loans Receivable	$	45,804,434	$	12,054,095	$	165,719,078	$	71,307,488	$	3,768,531	$	7,978,603	$	306,632,229

As of June 30, 2022 and December 31, 2021, loans individually evaluated and considered impaired are presented in the following table.

As of June 30, 2022 and December 31, 2021, loans individually evaluated and considered impaired are presented in the following table.

	Impaired Loans as of
	June 30, 2022						December 31, 2021
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
With no related allowance recorded:
Commercial	$	1,144,700	$	1,144,700	$	—	$	1,096,407	$	1,096,407	$	—
Commercial Real Estate Construction		—		—		—		—		—		—
Commercial Real Estate Other		1,208,713		1,208,713		—		1,653,121		1,653,121		—
Consumer Real Estate		249,758		249,758		—		249,758		249,758		—
Consumer Other		—		—		—		—		—		—
Paycheck Protection Program		—		—		—		—		—		—
Total		2,603,171		2,603,171		—		2,999,286		2,999,286		—
With an allowance recorded:
Commercial		247,079		247,079		247,079		367,070		367,070		179,988
Commercial Real Estate Construction		—		—		—		—		—		—
Commercial Real Estate Other		—		—		—		—		—		—
Consumer Real Estate		—		—		—		—		—		—
Consumer Other		39,039		39,039		39,039		40,153		40,153		40,153
Paycheck Protection Program		—		—		—		—		—		—
Total		286,118		286,118		286,118		407,223		407,223		220,141
Commercial		1,391,779		1,391,779		247,079		1,463,477		1,463,477		179,988
Commercial Real Estate Construction		—		—		—		—		—		—
Commercial Real Estate Other		1,208,713		1,208,713		—		1,653,121		1,653,121		—
Consumer Real Estate		249,758		249,758		—		249,758		249,758		—
Consumer Other		39,039		39,039		39,039		40,153		40,153		40,153
Paycheck Protection Program		—		—		—		—		—		—
Total	$	2,889,289	$	2,889,289	$	286,118	$	3,406,509	$	3,406,509	$	220,141

The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated.

The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated.

	Three Months Ended June 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	1,155,583	$	17,526	$	1,348,413	$	20,237
Commercial Real Estate Construction		—		—		—		—
Commercial Real Estate Other		1,215,823		7,278		4,113,624		47,843
Consumer Real Estate		249,758		2,905		249,758		2,646
Consumer Other		—		—		—		—
Paycheck Protection Program		—		—		—		—
		2,621,164		27,709		5,711,795		70,726
With an allowance recorded:
Commercial		247,079		2,593		178,975		1,760
Commercial Real Estate Construction		—		—		—		—
Commercial Real Estate Other		—		—		—		—
Consumer Real Estate		—		—		—		—
Consumer Other		39,246		636		41,424		671
Paycheck Protection Program		—		—		—		—
		286,325		3,229		220,399		2,431
Total
Commercial		1,402,662		20,119		1,527,388		21,997
Commercial Real Estate Construction		—		—		—		—
Commercial Real Estate Other		1,215,823		7,278		4,113,624		47,843
Consumer Real Estate		249,758		2,905		249,758		2,646
Consumer Other		39,246		636		41,424		671
Paycheck Protection Program		—		—		—		—
	$	2,907,489	$	30,938	$	5,932,194	$	73,157

	Six Months Ended June 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	1,171,504	$	35,605	$	1,373,127	$	41,189
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		1,220,878		18,037		4,114,822		80,773
Consumer Real Estate		249,758		6,321		249,796		5,265
Consumer Other		—		—		—		—
Paycheck Protection Program		—		—		—		—
		2,642,140		59,963		5,737,745		127,227
With an allowance recorded:
Commercial		247,460		6,437		178,975		3,609
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		—		—		—		—
Consumer Real Estate		—		—		—		—
Consumer Other		39,518		1,286		41,635		1,367
Paycheck Protection Program		—		—		—		—
		286,978		7,723		220,610		4,976
Total
Commercial		1,418,964		42,042		1,552,102		44,798
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		1,220,878		18,037		4,114,822		80,773
Consumer Real Estate		249,758		6,321		249,796		5,265
Consumer Other		39,518		1,286		41,635		1,367
Paycheck Protection Program		—		—		—		—
	$	2,929,118	$	67,686	$	5,958,355	$	132,203