Loans And Leases (Tables)

9 Months Ended

Sep. 30, 2020

Recorded Investment In Loans By Portfolio Segment




	September 30, 2020		December 31, 2019
	(unaudited)
Commercial (1)	$	331,273	$	170,646
Real estate:
Single-family residential		140,635		120,256
Multi-family residential		45,856		39,229
Commercial		275,153		247,543
Construction		71,679		67,652
Consumer:
Home equity lines of credit		20,481		20,941
Other		2,124		4,174
Subtotal		887,201		670,441
Less: ALLL		(15,492)		(7,138)
Loans and leases, net	$	871,709	$	663,303

⁽¹⁾

Includes $4,297 and $4,779 of commercial leases at September 30, 2020 and December 31, 2019, respectively.

Activity In ALLL By Portfolio Segment

The following table presents the activity in the ALLL by portfolio segment for the three and nine months ended September 30, 2020:



	Three months ended September 30, 2020 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	2,664	$	999	$	567	$	4,534	$	1,024	$	263	$	56	$	10,107
Addition to (reduction in) provision for loan losses		610		500		-		4,400		250		-		(10)		5,750
Charge-offs		-		(350)		-		-		-		(21)		-		(371)
Recoveries		-		1		-		-		-		5		-		6
Ending balance	$	3,274	$	1,150	$	567	$	8,934	$	1,274	$	247	$	46	$	15,492



	Nine months ended September 30, 2020 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	2,054	$	948	$	447	$	2,604	$	759	$	265	$	61	$	7,138
Addition to (reduction in) provision for loan losses		1,330		605		120		6,330		515		(10)		(15)		8,875
Charge-offs		(110)		(408)		-		-		-		(21)		-		(539)
Recoveries		-		5		-		-		-		13		-		18
Ending balance	$	3,274	$	1,150	$	567	$	8,934	$	1,274	$	247	$	46	$	15,492

The following table presents the activity in the ALLL by portfolio segment for the three and nine months ended September 30, 2019:



	Three months ended September 30, 2019 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,969	$	1,014	$	562	$	2,339	$	759	$	309	$	77	$	7,029
Addition to (reduction in) provision for loan losses		70		(125)		(25)		130		-		(50)		-		-
Charge-offs		-		-		-		-		-		-		(6)		(6)
Recoveries		-		2		-		-		-		32		-		34
Ending balance	$	2,039	$	891	$	537	$	2,469	$	759	$	291	$	71	$	7,057



	Nine months ended September 30, 2019 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,819	$	1,061	$	612	$	2,274	$	739	$	410	$	97	$	7,012
Addition to (reduction in) provision for loan losses		220		(175)		(75)		195		20		(165)		(20)		-
Charge-offs		-		-		-		-		-		-		(6)		(6)
Recoveries		-		5		-		-		-		46		-		51
Ending balance	$	2,039	$	891	$	537	$	2,469	$	759	$	291	$	71	$	7,057

Balance In ALLL And Recorded Investment In Loans By Portfolio Segment And Based On Impairment Method

The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on the impairment method as of September 30, 2020 (unaudited):



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	23	$	-	$	-	$	-	$	23
Collectively evaluated for impairment		3,274		1,150		567		8,911		1,274		247		46		15,469
Total ending allowance balance	$	3,274	$	1,150	$	567	$	8,934	$	1,274	$	247	$	46	$	15,492

Loans:
Individually evaluated for impairment	$	80	$	105	$	-	$	2,733	$	-	$	-	$	-	$	2,918
Collectively evaluated for impairment		331,193		140,530		45,856		272,420		71,679		20,481		2,124		884,283
Total ending loan balance	$	331,273	$	140,635	$	45,856	$	275,153	$	71,679	$	20,481	$	2,124	$	887,201

The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on the impairment method as of December 31, 2019:



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1	$	1	$	-	$	33	$	-	$	-	$	-	$	35
Collectively evaluated for impairment		2,053		947		447		2,571		759		265		61		7,103
Total ending allowance balance	$	2,054	$	948	$	447	$	2,604	$	759	$	265	$	61	$	7,138

Loans:
Individually evaluated for impairment	$	85	$	107	$	-	$	4,420	$	-	$	-	$	-	$	4,612
Collectively evaluated for impairment		170,561		120,149		39,229		243,123		67,652		20,941		4,174		665,829
Total ending loan balance	$	170,646	$	120,256	$	39,229	$	247,543	$	67,652	$	20,941	$	4,174	$	670,441

Individually Evaluated For Impairment By Class Of Loans

The following table presents loans individually evaluated for impairment by class of loans as of and for the period ended September 30, 2020. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, and deferred loan fees and costs. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2020. Cash payments of interest on these loans during the three and nine months ended September 30, 2020 totaled $51 and $105, respectively.


							Three months ended				Nine months ended
	As of September 30, 2020						September 30, 2020				September 30, 2020
	(unaudited)						(unaudited)				(unaudited)
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Real estate:
Commercial:
Owner occupied	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total with no allowance recorded		-		-		-		-		-		-		-

With an allowance recorded:
Commercial (1)		80		80		-		80		2		111		8
Real estate:
Single-family residential (1)		105		105		-		105		1		106		3
Commercial:
Non-owner occupied		2,733		2,733		23		2,728		38		2,730		113
Total with an allowance recorded		2,918		2,918		23		2,913		41		2,947		124
Total	$	2,918	$	2,918	$	23	$	2,913	$	41	$	2,947	$	124

⁽¹⁾

Allowance recorded in an amount less than $1 has been rounded down to zero.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, and deferred loan fees and costs. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2019. Cash payments of interest during the three and nine months ended September 30, 2019 totaled $44 and $132, respectively.


							Three months ended				Nine months ended
	As of December 31, 2019						September 30, 2019				September 30, 2019
							(unaudited)				(unaudited)
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial:
Owner occupied	$	-	$	-	$	-	$	121	$	4	$	122	$	10
Total with no allowance recorded		-		-		-		121		4		122		10

With an allowance recorded:
Commercial		85		85		1		90		-		94		-
Real estate:
Single-family residential		107		107		1		108		1		109		4
Commercial:
Non-owner occupied		4,420		4,420		33		4,474		38		4,113		116
Total with an allowance recorded		4,612		4,612		35		4,672		39		4,316		120
Total	$	4,612	$	4,612	$	35	$	4,793	$	43	$	4,438	$	130

Recorded Investment In Nonaccrual Loans By Class Of Loans




	September 30, 2020		December 31, 2019
	(unaudited)
Loans past due over 90 days still on accrual	$	-	$	-
Nonaccrual loans:
Commercial		-		85
Real estate:
Single-family residential		441		550
Commercial:
Non-owner occupied		-		1,689
Consumer:
Home equity lines of credit:
Originated for portfolio		13		36
Purchased for portfolio		73		79
Other consumer		-		-
Total nonaccrual		527		2,439
Total nonaccrual and nonperforming loans	$	527	$	2,439

Aging Of Recorded Investment In Past Due Loans By Class Of Loans

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of September 30, 2020 (unaudited):


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due
Commercial	$	-	$	-	$	-	$	-	$	331,273	$	-
Real estate:
Single-family residential		444		-		331		775		139,860		110
Multi-family residential		-		-		-		-		45,856		-
Commercial:
Non-owner occupied		-		-		-		-		157,817		-
Owner occupied		-		-		-		-		89,693		-
Land		-		-		-		-		27,643		-
Construction		-		-		-		-		71,679		-
Consumer:
Home equity lines of credit:
Originated for portfolio		-		130		-		130		20,158		13
Purchased for portfolio		-		47		-		47		146		73
Other		-		-		-		-		2,124		-
Total	$	444	$	177	$	331	$	952	$	886,249	$	196

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2019:



	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due
Commercial	$	-	$	71	$	-	$	71	$	170,575	$	85
Real estate:
Single-family residential		2,453		261		426		3,140		117,116		124
Multi-family residential		-		-		-		-		39,229		-
Commercial:
Non-owner occupied		-		-		1,689		1,689		138,762		-
Owner occupied		-		-		-		-		81,871		-
Land		-		-		-		-		25,221		-
Construction		304		-		-		304		67,348		-
Consumer:
Home equity lines of credit:
Originated for portfolio		-		-		22		22		20,713		14
Purchased for portfolio		-		-		-		-		206		79
Other		-		-		-		-		4,174		-
Total	$	2,757	$	332	$	2,137	$	5,226	$	665,215	$	302

Nonaccrual Loans As Troubled Debt Restructuring




	September 30, 2020		December 31, 2019
	(unaudited)
Commercial	$	-	$	85
Total	$	-	$	85

Recorded Investment In Loans By Risk Category And Class Of Loans

The recorded investment in loans and leases by risk category and by class of loans and leases as of September 30, 2020 and based on the most recent analysis performed follows. There were no loans or leases rated as Doubtful at September 30, 2020.


(unaudited)	Not Rated		Pass		Special Mention		Substandard		Total
Commercial	$	-	$	327,501	$	857	$	2,915	$	331,273
Real estate:
Single-family residential		140,194		-		-		441		140,635
Multi-family residential		-		45,724		-		132		45,856
Commercial:
Non-owner occupied		60		147,957		7,066		2,734		157,817
Owner occupied		-		86,225		2,581		887		89,693
Land		-		27,643		-		-		27,643
Construction		-		71,513		166		-		71,679
Consumer:
Home equity lines of credit:
Originated for portfolio		20,260		-		-		28		20,288
Purchased for portfolio		120		-		-		73		193
Other		2,124		-		-		-		2,124
	$	162,758	$	706,563	$	10,670	$	7,210	$	887,201

The recorded investment in loans and leases by risk category and by class of loans and leases as of December 31, 2019 follows. There were no loans or leases rated as Doubtful at December 31, 2019.



	Not Rated		Pass		Special Mention		Substandard		Total
Commercial	$	-	$	168,617	$	1,424	$	605	$	170,646
Real estate:
Single-family residential		119,707		-		-		549		120,256
Multi-family residential		-		39,081		-		148		39,229
Commercial:
Non-owner occupied		67		134,466		1,498		4,420		140,451
Owner occupied		-		79,773		2,098		-		81,871
Land		-		25,221		-		-		25,221
Construction		1,855		65,797		-		-		67,652
Consumer:
Home equity lines of credit:
Originated for portfolio		20,681		-		-		54		20,735
Purchased for portfolio		127		-		-		79		206
Other		4,174		-		-		-		4,174
	$	146,611	$	512,955	$	5,020	$	5,855	$	670,441

Components Of Net Investment In Direct Financing Leases


	September 30, 2020		December 31, 2019
	(unaudited)
Total minimum lease payments to be received	$	4,658	$	5,252
Less: unearned income		(361)		(473)
Net investment in direct financing leases	$	4,297	$	4,779

⁽¹⁾

There were no initial direct costs associated with these leases.

Summary Of Future Minimum Lease Payments Receivable


2020	$	198
2021		793
2022		793
2023		1,564
2024		1,310
	$	4,658