Loans (Tables)

3 Months Ended

Mar. 31, 2023

Loans

Schedule of Major Classifications Of Loans

(Dollars in thousands)
	March 31, 2023			December 31, 2022
Real estate loans:
Construction and land development	$	120,836			114,446
Single-family residential		327,260			322,262
Single-family residential -
Banco de la Gente non-traditional		19,415			20,019
Commercial		410,775			406,750
Multifamily and farmland		69,139			65,562
Total real estate loans		947,425			929,039
Loans not secured by real estate:
Commercial loans		79,252			81,307
Farm loans		632			938
Consumer loans		7,240			6,834
All other loans		16,322			14,490
Total loans		1,050,871			1,032,608
Less allowance for credit losses		(9,617	)		(10,494	)
Total net loans	$	1,041,254			1,022,114

Age Analysis Of Past Due Loans, By Loan Type

March 31, 2023
(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	$	94		-		94		120,742		120,836		-
Single-family residential		3,313		455		3,768		323,492		327,260		-
Single-family residential -
Banco de la Gente non-traditional		2,443		82		2,525		16,890		19,415		-
Commercial		-		-		-		410,775		410,775		-
Multifamily and farmland		-		-		-		69,139		69,139		-
Total real estate loans		5,850		537		6,387		941,038		947,425		-
Loans not secured by real estate:
Commercial loans		156		-		156		79,096		79,252		-
Farm loans		-		-		-		632		632		-
Consumer loans		47		-		47		7,193		7,240		-
All other loans		-		-		-		16,322		16,322		-
Total loans	$	6,053		537		6,590		1,044,281		1,050,871		-

December 31, 2022
(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	$	363		-		363		114,083		114,446		-
Single-family residential		4,318		256		4,574		317,688		322,262		-
Single-family residential -
Banco de la Gente non-traditional		2,977		264		3,241		16,778		20,019		-
Commercial		306		-		306		406,444		406,750		-
Multifamily and farmland		-		-		-		65,562		65,562		-
Total real estate loans		7,964		520		8,484		920,555		929,039		-
Loans not secured by real estate:
Commercial loans		3		-		3		81,304		81,307		-
Farm loans		-		-		-		938		938		-
Consumer loans		71		-		71		6,763		6,834		-
All other loans		-		-		-		14,490		14,490		-
Total loans	$	8,038		520		8,558		1,024,050		1,032,608		-

Non-accrual Loans

	CECL						Incurred Loss
	March 31, 2023						December 31, 2022
	Nonaccrual Loans		Nonaccrual Loans		Total		Total
	With No		With		Nonaccrual		Nonaccrual
(Dollars in thousands)	Allowance		Allowance		Loans		Loans
Real estate loans:
Construction and land development	$	50		-		50		53
Single-family residential		2,029		-		2,029		1,914
Single-family residential -
Banco de la Gente non-traditional		1,350		-		1,350		1,532
Commercial		125		-		125		129
Multifamily and farmland		87		-		87		91
Total real estate loans		3,641		-		3,641		3,719
Loans not secured by real estate:
Commercial loans		-		-		-		-
Consumer loans		3		-		3		9
Total	$	3,644		-		3,644		3,728

Amortized cost basis

(Dollars in thousands)
	Term Extension
	Amortized Cost Basis at March 31, 2023		% of Loan Class
Loan class:
Commercial real estate		686		0.17	%
Total	$	686

Performance of loans

(Dollars in thousands)
	Payment Status (Amortized Cost Basis)
	Current		30 - 89 Days Past Due		90 + Days Past Due
Loan type:
Commercial real estate		686		-		-
Total	$	686		-		-

Impaired Loans

December 31, 2022
(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	$	110		-		110		110		2
Single-family residential		3,912		236		3,300		3,536		60
Single-family residential -
Banco de la Gente non-traditional		10,441		-		9,748		9,748		611
Commercial		1,785		421		1,346		1,767		9
Multifamily and farmland		104		-		91		91		-
Total impaired real estate loans		16,352		657		14,595		15,252		682
Loans not secured by real estate:
Commercial loans		116		-		116		116		1
Consumer loans		11		-		9		9		-
Total impaired loans	$	16,479		657		14,720		15,377		683

Summary of average impaired loans balance

(Dollars in thousands)
	Three months ended				Twelve months ended
	March 31, 2022				December 31, 2022
	Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
Real estate loans:
Construction and land development	$	71		2		75		8
Single-family residential		5,723		47		5,194		194
Single-family residential -
Banco de la Gente stated income		9,566		139		8,757		552
Commercial		2,032		25		1,916		93
Multifamily and farmland		103		1		96		5
Total impaired real estate loans		17,495		214		16,038		852
Loans not secured by real estate:
Commercial loans		188		2		137		8
Consumer loans		7		-		15		2
Total impaired loans	$	17,690		216		16,190		862

Changes In The Allowance For Loan Losses

(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 and All Other			Unallocated			Total
Three months ended March 31, 2023
Allowance for credit losses:
Beginning balance	$	1,415			2,322			763			3,207			164		657			-			214			1,752			10,494
Adjustment for CECL implementation		3,781			715			(576	)		(986	)		115		(295	)		2			54			(1,752	)		1,058
Charge-offs		-			-			-			-			-		-			-			(166	)		-			(166	)
Recoveries		-			11			-			2			-		9			-			60			-			82
Provision (recovery) for unfunded commitments		(193	)		(8	)		-			-			-		-			-			(2	)		-			(203	)
Provision (recovery) for loan losses		250			37			(6	)		21			19		(23	)		(1	)		130			-			427
Ending balance	$	5,253			3,077			181			2,244			298		348			1			290			-			11,692
Allowance for credit loss-loans	$	3,249			3,010			181			2,244			298		348			1			286			-			9,617
Allowance for credit losses loan commitments		2,004			67			-			-			-		-			-			4			-			2,075
Total allowance for credit losses	$	5,253			3,077			181			2,244			298		348			1			290			-			11,692

(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 and All Other			Unallocated			Total
Three months ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	1,193			2,013			864			2,234		150			711			-		110			2,080			9,355
Charge-offs		-			(31	)		-			-		-			(4	)		-		(125	)		-			(160	)
Recoveries		-			117			-			2		-			19			-		22			-			160
Provision (recovery)		(30	)		(4	)		(23	)		775		(3	)		(80	)		-		121			(685	)		71
Ending balance	$	1,163			2,095			841			3,011		147			646			-		128			1,395			9,426
Allowance for loan losses March 31, 2022
Ending balance: individually evaluated for impairment	$	1			38			657			6		-			-			-		-			-			702
Ending balance: collectively evaluated for impairment		1,162			2,057			184			3,005		147			646			-		128			1,395			8,724
Ending balance	$	1,163			2,095			841			3,011		147			646			-		128			1,395			9,426
Loans at March 31, 2022:
Ending balance	$	95,025			272,991			22,137			354,169		58,927			73,409			863		12,237			-			889,758
Ending balance: individually evaluated for impairment	$	4			859			9,494			1,426		-			-			-		-			-			11,783
Ending balance: collectively evaluated for impairment	$	95,021			272,132			12,643			352,743		58,927			73,409			863		12,237			-			877,975

Credit Risk Profile Of Each Loan Type Based On Internally Assigned Risk Grade

December 31, 2022
(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
Pass	$	114,282		317,850		16,410		402,236		65,348		80,596		938		6,818		14,345		1,018,823
Watch		54		922		1,136		3,963		123		711		-		1		145		7,055
Substandard		110		3,490		2,473		551		91		-		-		15		-		6,730
Total	$	114,446		322,262		20,019		406,750		65,562		81,307		938		6,834		14,490		1,032,608

Schedule of credit quality indicator

	Term Loans by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2023		2022		2021		2020		2019		Prior		Loans		Term Loans		Loans
March 31, 2023
Real Estate Loans
Construction and land development
Pass	$	3,279		72,777		24,090		11,141		2,135		4,912		2,349		-		120,683
Watch		-		-		-		-		-		49		-		-		49
Substandard		-		-		-		-		-		104		-		-		104
Total Construction and land development	$	3,279		72,777		24,090		11,141		2,135		5,065		2,349		-		120,836
Single family
Pass	$	9,654		67,967		46,587		26,348		14,079		56,773		101,968		-		323,376
Watch		-		-		-		-		91		382		-		-		473
Substandard		-		-		-		-		-		3,016		395		-		3,411
Total single family	$	9,654		67,967		46,587		26,348		14,170		60,171		102,363		-		327,260
Single family-Banco de la
Gente non-traditional
Pass	$	-		-		-		-		-		17,104		-		-		17,104
Watch		-		-		-		-		-		412		-		-		412
Substandard		-		-		-		-		-		1,899		-		-		1,899
Total Banco de la Gente
non-traditional	$	-		-		-		-		-		19,415		-		-		19,415
Commercial
Pass	$	14,091		106,570		74,741		68,156		33,437		108,031		1,426		-		406,452
Watch		-		-		-		120		-		3,659		-		-		3,779
Substandard		-		-		-		419		-		125		-		-		544
Total commercial	$	14,091		106,570		74,741		68,695		33,437		111,815		1,426		-		410,775
Multifamily and farmland
Pass	$	3,616		16,971		23,211		6,688		3,852		14,019		575		-		68,932
Watch		-		-		-		-		-		120		-		-		120
Substandard		-		-		-		-		-		87		-		-		87
Total multifamily and
farmland	$	3,616		16,971		23,211		6,688		3,852		14,226		575		-		69,139
Total real estate loans	$	30,640		264,285		168,629		112,872		53,594		210,692		106,713		-		947,425
Loans not secured by real estate
Commercial
Pass	$	3,518		18,150		5,351		5,001		3,398		14,006		29,544		-		78,968
Watch		-		-		-		-		128		155		1		-		284
Substandard		-		-		-		-		-		-		-		-		-
Total Commercial	$	3,518		18,150		5,351		5,001		3,526		14,161		29,545		-		79,252
Farm
Pass	$	38		18		-		334		23		70		149		-		632
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total farm	$	38		18		-		334		23		70		149		-		632
Consumer
Pass	$	1,065		2,164		778		377		129		110		2,607		-		7,230
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		4		1		-		1		4		-		10
Total consumer	$	1,065		2,164		782		378		129		111		2,611		-		7,240
All other
Pass	$	7,054		546		477		477		818		4,172		2,636		-		16,180
Watch		-		-		-		-		-		76		66		-		142
Substandard		-		-		-		-		-		-		-		-		-
Total all other	$	7,054		546		477		477		818		4,248		2,702		-		16,322
Total loans not secured by real estate	$	11,675		20,878		6,610		6,190		4,496		18,590		35,007		-		103,446
Total loans	$	42,315		285,163		175,239		119,062		58,090		229,282		141,720		-		1,050,871
Current period gross charge-offs	$	-		16		29		3		-		118		-		-		166