3. Loans (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Major classifications of loans

(Dollars in thousands)
	June 30, 2019		December 31, 2018
Real estate loans:
Construction and land development	$	86,920		94,178
Single-family residential		264,724		252,983
Single-family residential -
Banco de la Gente non-traditional		32,499		34,261
Commercial		281,895		270,055
Multifamily and farmland		44,065		33,163
Total real estate loans		710,103		684,640
Loans not secured by real estate:
Commercial loans		103,466		97,465
Farm loans		1,060		926
Consumer loans		8,684		9,165
All other loans		10,054		11,827
Total loans		833,367		804,023
Less allowance for loan losses		6,541		6,445
Total net loans	$	826,826		797,578

Age analysis of past due loans, by loan type

June 30, 2019
(Dollars in thousands)
	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	257		-		257		86,663		86,920		-
Single-family residential		2,608		682		3,290		261,434		264,724		-
Single-family residential -
Banco de la Gente non-traditional		827		-		827		31,672		32,499		-
Commercial		324		-		324		281,571		281,895		-
Multifamily and farmland		-		-		-		44,065		44,065		-
Total real estate loans		4,016		682		4,698		705,405		710,103		-
Loans not secured by real estate:
Commercial loans		150		-		150		103,316		103,466		-
Farm loans		-		-		-		1,060		1,060		-
Consumer loans		43		4		47		8,637		8,684		-
All other loans		-		-		-		10,054		10,054		-
Total loans	$	4,209		686		4,895		828,472		833,367		-

December 31, 2018
(Dollars in thousands)
	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	3		-		3		94,175		94,178		-
Single-family residential		4,162		570		4,732		248,251		252,983		-
Single-family residential -
Banco de la Gente non-traditional		4,627		580		5,207		29,054		34,261		-
Commercial		228		-		228		269,827		270,055		-
Multifamily and farmland		-		-		-		33,163		33,163		-
Total real estate loans		9,020		1,150		10,170		674,470		684,640		-
Loans not secured by real estate:
Commercial loans		445		90		535		96,930		97,465		-
Farm loans		-		-		-		926		926		-
Consumer loans		99		4		103		9,062		9,165		-
All other loans		-		-		-		11,827		11,827		-
Total loans	$	9,564		1,244		10,808		793,215		804,023		-

Non-accrual loans

(Dollars in thousands)
	June 30, 2019		December 31, 2018
Real estate loans:
Construction and land development	$	-		1
Single-family residential		1,224		1,530
Single-family residential -
Banco de la Gente non-traditional		1,616		1,440
Commercial		85		244
Multifamily and farmland		-		-
Total real estate loans		2,925		3,215
Loans not secured by real estate:
Commercial loans		85		89
Consumer loans		17		10
Total	$	3,027		3,314

Impaired loans

June 30, 2019
(Dollars in thousands)
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Recorded Investment in Impaired Loans		Related Allowance
Real estate loans:
Construction and land development	$	189		-		189		189		5
Single-family residential		4,785		413		3,928		4,341		29
Single-family residential -
Banco de la Gente stated income		15,694		-		14,975		14,975		988
Commercial		1,734		-		1,728		1,728		13
Multifamily and farmland		-		-		-		-		-
Total impaired real estate loans		22,402		413		20,820		21,233		1,035
Loans not secured by real estate:
Commercial loans		280		38		80		118		-
Consumer loans		105		-		101		101		2
Total impaired loans	$	22,787		451		21,001		21,452		1,037

December 31, 2018
(Dollars in thousands)
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Recorded Investment in Impaired Loans		Related Allowance		Average Outstanding Impaired Loans		YTD Interest Income Recognized
Real estate loans:
Construction and land development	$	281		-		279		279		5		327		19
Single-family residential		5,059		422		4,188		4,610		32		6,271		261
Single-family residential -
Banco de la Gente non-traditional		16,424		-		15,776		15,776		1,042		14,619		944
Commercial		1,995		-		1,925		1,925		17		2,171		111
Total impaired real estate loans		23,759		422		22,168		22,590		1,096		23,388		1,335
Loans not secured by real estate:
Commercial loans		251		89		1		90		-		96		-
Consumer loans		116		-		113		113		2		137		7
Total impaired loans	$	24,126		511		22,282		22,793		1,098		23,621		1,342

Changes in the allowance for loan losses

(Dollars in thousands)
	Three months ended								Six months ended
	June 30, 2019				June 30, 2018				June 30, 2019				June 30, 2018
	Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
Real estate loans:
Construction and land development	$	232		2		373		5		248		6		341		11
Single-family residential		4,214		57		6,306		66		4,826		118		6,325		135
Single-family residential -
Banco de la Gente stated income		15,347		239		14,841		230		15,010		491		14,981		467
Commercial		1,739		22		2,304		42		1,801		45		2,359		80
Multifamily and farmland		-		-		-		-		-		-		4		-
Total impaired real estate loans		21,532		320		23,824		343		21,885		660		24,010		693
Loans not secured by real estate:
Commercial loans		114		3		98		-		106		4		100		-
Farm loans (non RE)		-		-		-		-		-		-		-		-
Consumer loans		104		2		141		2		107		4		146		4
Total impaired loans	$	21,750		325		24,063		345		22,098		668		24,256		697

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential			Single-Family Residential - Banco de la Gente Stated Income			Commercial		Multifamily and Farmland		Commercial			Farm		Consumer and All Other			Unallocated		Total
Six months ended June 30, 2019:
Allowance for loan losses:
Beginning balance	$	813			1,325			1,177			1,278		83		626			-		161			982		6,445
Charge-offs		(21	)		(22	)		-			-		-		(1	)		-		(316	)		-		(360	)
Recoveries		3			53			-			23		-		14			-		108			-		201
Provision		(32	)		(44	)		(61	)		33		27		(91	)		-		208			215		255
Ending balance	$	763			1,312			1,116			1,334		110		548			-		161			1,197		6,541
Three months ended June 30, 2019:
Allowance for loan losses:
Beginning balance	$	831			1,256			1,174			1,292		98		610			-		162			1,138		6,561
Charge-offs		(21	)		(9	)		-			-		-		-			-		(166	)		-		(196	)
Recoveries		2			5			-			19		-		8			-		65			-		99
Provision		(49	)		60			(58	)		23		12		(70	)		-		100			59		77
Ending balance	$	763			1,312			1,116			1,334		110		548			-		161			1,197		6,541
Allowance for loan losses at June 30, 2019:
Ending balance: individually
evaluated for impairment	$	-			2			970			12		-		-			-		-			-		984
Ending balance: collectively
evaluated for impairment		763			1,310			146			1,322		110		548			-		161			1,197		5,557
Ending balance	$	763			1,312			1,116			1,334		110		548			-		161			1,197		6,541
Loans at June 30, 2019:
Ending balance	$	86,920			264,724			32,499			281,895		44,065		103,466			1,060		18,738			-		833,367
Ending balance: individually
evaluated for impairment	$	11			1,738			13,508			1,643		-		38			-		-			-		16,938
Ending balance: collectively
evaluated for impairment	$	86,909			262,986			18,991			280,252		44,065		103,428			1,060		18,738			-		816,429

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential			Single-Family Residential - Banco de la Gente Stated Income			Commercial			Multifamily and Farmland			Commercial			Farm		Consumer and All Other			Unallocated			Total
Six months ended June 30, 2018:
Allowance for loan losses:
Beginning balance	$	804			1,812			1,280			1,193			72			574			-		155			476			6,366
Charge-offs		-			(43	)		-			(271	)		(5	)		(2	)		-		(186	)		-			(507	)
Recoveries		3			27			-			7			1			16			-		102			-			156
Provision		(139	)		(158	)		(47	)		491			4			(1	)		-		79			33			262
Ending balance	$	668			1,638			1,233			1,420			72			587			-		150			509			6,277
Three months ended June 30, 2018:
Allowance for loan losses:
Beginning balance	$	651			1,640			1,265			1,298			73			706			-		136			604			6,373
Charge-offs		-			(43	)		-			(271	)		-			(2	)		-		(85	)		-			(401	)
Recoveries		1			22			-			4			-			8			-		39			-			74
Provision		16			19			(32	)		389			(1	)		(125	)		-		60			(95	)		231
Ending balance	$	668			1,638			1,233			1,420			72			587			-		150			509			6,277
Allowance for loan losses at June 30, 2018:
Ending balance: individually
evaluated for impairment	$	-			2			1,066			18			-			-			-		-			-			1,086
Ending balance: collectively
evaluated for impairment		668			1,636			167			1,402			72			587			-		150			509			5,191
Ending balance	$	668			1,638			1,233			1,420			72			587			-		150			509			6,277
Loans at June 30, 2018:
Ending balance	$	79,769			250,620			35,847			269,792			28,667			93,580			1,023		22,586			-			781,884
Ending balance: individually
evaluated for impairment	$	95			2,132			14,975			2,103			-			94			-		-			-			19,399
Ending balance: collectively
evaluated for impairment	$	79,674			248,488			20,872			267,689			28,667			93,486			1,023		22,586			-			762,485

Credit risk profile of each loan type based on internally assigned risk grade

June 30,2019
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development		Single-Family Residential		Single-Family Residential - Banco de la Gente non-traditional		Commercial		Multifamily and Farmland		Commercial		Farm		Consumer		All Other		Total
1- Excellent Quality	$	82		7,788		-		-		-		586		-		792		-		9,248
2- High Quality		27,751		131,136		-		23,245		326		23,039		-		2,896		2,063		210,456
3- Good Quality		49,964		100,854		13,094		220,899		39,442		72,668		933		4,521		7,253		509,628
4- Management Attention		6,015		18,695		14,355		34,730		3,739		6,847		127		431		738		85,677
5- Watch		3,041		3,303		2,164		2,936		558		234		-		12		-		12,248
6- Substandard		67		2,948		2,886		85		-		92		-		32		-		6,110
7- Doubtful		-		-		-		-		-		-		-		-		-		-
8- Loss		-		-		-		-		-		-		-		-		-		-
Total	$	86,920		264,724		32,499		281,895		44,065		103,466		1,060		8,684		10,054		833,367

December 31, 2018
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development		Single-Family Residential		Single-Family Residential - Banco de la Gente non-traditional		Commercial		Multifamily and Farmland		Commercial		Farm		Consumer		All Other		Total
1- Excellent Quality	$	504		5,795		-		-		-		605		-		673		-		7,577
2- High Quality		24,594		128,588		-		25,321		395		20,520		-		3,229		2,145		204,792
3- Good Quality		59,549		92,435		13,776		211,541		27,774		69,651		785		4,699		8,932		489,142
4- Management Attention		5,707		19,200		15,012		30,333		3,906		6,325		141		529		750		81,903
5- Watch		3,669		3,761		2,408		2,616		1,088		264		-		18		-		13,824
6- Substandard		155		3,204		3,065		244		-		100		-		17		-		6,785
7- Doubtful		-		-		-		-		-		-		-		-		-		-
8- Loss		-		-		-		-		-		-		-		-		-		-
Total	$	94,178		252,983		34,261		270,055		33,163		97,465		926		9,165		11,827		804,023