Loans (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Summary of Major Classifications of Loans

Major classifications of loans are as follows:

	As of December 31,
	2022			2021
Commercial:
Real estate	$	210,858		$	185,223
Land development		—			1,400
Other		43,708			38,160
Residential real estate:
First mortgage		85,444			80,661
Construction		3,248			3,388
Consumer:
Home equity and lines of credit		18,590			17,032
Other		99			128
Subtotal		361,947			325,992
Net deferred loan costs		830			655
Allowance for loan losses		(3,203	)		(2,858	)
Loans, net	$	359,574		$	323,789

Summary of Activity in Allowance for Loan and Lease Losses

A summary of the activity in the allowance for loan losses by portfolio segment is as follows:

For the year ended December 31,2022	Commercial		Residential		Consumer			Total
Allowance for loan losses
Beginning balance	$	1,657	$	745	$	456		$	2,858
Provision for loan losses		222		—		—			222
Loans charged-off		—		—		(10	)		(10	)
Recoveries		65		7		61			133
Ending balance	$	1,944	$	752	$	507		$	3,203
For the year ended December 31,2021	Commercial		Residential		Consumer			Total
Allowance for loan losses
Beginning balance	$	1,609	$	745	$	349		$	2,703
Provision for loan losses		30		—		—			30
Loans charged-off		—		—		(19	)		(19	)
Recoveries		18		—		126			144
Ending balance	$	1,657	$	745	$	456		$	2,858

Summary of Allowance for Loan and Lease Losses for Loans Evaluated Individually and Collectively for Impairment

Information about how loans were evaluated for impairment and the related allowance for loan losses follows:

December 31, 2022	Commercial		Residential		Consumer		Total
Loans:
Individually evaluated for impairment	$	3,374	$	1,068	$	55	$	4,497
Collectively evaluated for impairment		251,192		87,624		18,634		357,450
Total loans	$	254,566	$	88,692	$	18,689	$	361,947
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		1,944		752		507		3,203
Total allowance for loan losses	$	1,944	$	752	$	507	$	3,203
December 31, 2021	Commercial		Residential		Consumer		Total
Loans:
Individually evaluated for impairment	$	4,833	$	1,357	$	37	$	6,227
Collectively evaluated for impairment		219,950		82,692		17,123		319,765
Total loans	$	224,783	$	84,049	$	17,160	$	325,992
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		1,657		745		456		2,858
Total allowance for loan losses	$	1,657	$	745	$	456	$	2,858

Summary of Information Regarding Impaired Loans

Information regarding impaired loans follows:

	Recorded Investment		Unpaid Principal		Reserve		Average Investment		Interest Recognized
December 31, 2022
Impaired loans with reserve:
Commercial:
Real estate	$	—	$	—	$	—	$	—	$	—
Land development		—		—		—		—		—
Other		—		—		—		—		—
Residential real estate:
First mortgages		—		—		—		—		—
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		—		—		—		—		—
Other		—		—		—		—		—
Total impaired loans with reserve	$	—	$	—	$	—	$	—	$	—
Impaired loans with no reserve:
Commercial:
Real estate	$	1,271	$	1,271	NA		$	3,757	$	171
Land development		—		—	NA			—		—
Other		2,103		2,103	NA			1,325		110
Residential real estate:
First mortgages		1,068		1,337	NA			1,206		61
Construction		—		—	NA			—		—
Consumer:
Home equity and lines of credit		55		60	NA			37		2
Other		—		—	NA			—		—
Total impaired loans with no reserve		4,497		4,771	NA			6,325		344
Total impaired loans	$	4,497	$	4,771	$	—	$	6,325	$	344

Information regarding impaired loans follows:

	Recorded Investment		Unpaid Principal		Reserve		Average Investment		Interest Recognized
December 31, 2021
Impaired loans with reserve:
Commercial:
Real estate	$	—	$	—	$	—	$	—	$	—
Land development		—		—		—		—		—
Other		—		—		—		—		—
Residential real estate:
First mortgages		—		—		—		—		—
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		—		—		—		—		—
Other		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—
Impaired loans with no reserve:
Commercial:
Real estate	$	4,088	$	4,089	NA		$	5,615	$	213
Land development		—		—	NA			734		33
Other		745		796	NA			1,478		35
Residential real estate:
First mortgages		1,357		1,572	NA			914		34
Construction		—		—	NA			—		—
Consumer:
Home equity and lines of credit		37		41	NA			17		22
Other		—		—	NA			—		—
Total impaired loans with no reserve		6,227		6,498	NA			8,758		337
Total impaired loans	$	6,227	$	6,498	$	—	$	8,758	$	337

Summary of Internal Risk Ratings of Loans

Information regarding the credit quality indicators most closely monitored for commercial loans by class follows:

December 31, 2022	Pass		Watch and Special Mention		Substandard		Total
Commercial:
Real estate	$	206,655	$	2,932	$	1,271	$	210,858
Land development		—		—		—		—
Other		41,569		35		2,104		43,708
Total	$	248,224	$	2,967	$	3,375	$	254,566
December 31, 2021	Pass		Watch and Special Mention		Substandard		Total
Commercial:
Real estate	$	172,172	$	8,963	$	4,088	$	185,223
Land development		1,400		—		—		1,400
Other		37,414		1		745		38,160
Total	$	210,986	$	8,964	$	4,833	$	224,783

Summary of Information Regarding the Credit Quality Indicators for Residential Real Estate and Consumer Loans

Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows:

December 31, 2022	Performing		Non-Performing		Total
Residential real estate:
First mortgage	$	84,730	$	714	$	85,444
Construction		3,248		—	$	3,248
Consumer:
Home equity and lines of credit		18,535		55	$	18,590
Other		99		—	$	99
Total	$	106,612	$	769	$	107,381
December 31, 2021	Performing		Non-Performing		Total
Residential real estate:
First mortgage	$	79,722	$	939	$	80,661
Construction		3,388		—		3,388
Consumer:
Home equity and lines of credit		16,954		78		17,032
Other		128		—		128
Total	$	100,192	$	1,017	$	101,209

Schedule of Analysis of Past due Loans

Loan aging and non-accrual information follows:

December 31, 2022	Current Loans		Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Loans		Non-accrual Loans
Commercial:
Real estate	$	209,126	$	1,732	$	—	$	210,858	$	—
Land development		—		—		—		—		—
Other		43,708		—		—		43,708		—
Residential real estate:
First mortgage		85,200		181		63		85,444		714
Construction		3,248		—		—		3,248		—
Consumer:
Home equity and lines of credit		18,497		72		21		18,590		55
Other		97		2		—		99		—
Total	$	359,876	$	1,987	$	84	$	361,947	$	769
			'Total non-accrual loans to total loans							0.21	%
			'Total non-accrual loans to total assets							0.14	%
December 31, 2021	Current Loans		Loans Past Due 30-89 Days		Loans Past Due 90+ Days		Total Loans		Non-accrual Loans
Commercial:
Real estate	$	185,223	$	—	$	—	$	185,223	$	—
Land development		1,400		—		—		1,400		—
Other		38,127		33		—		38,160		—
Residential real estate:
First mortgage		80,319		342		—		80,661		939
Construction		3,388		—		—		3,388		—
Consumer:
Home equity and lines of credit		17,032		—		—		17,032		78
Other		128		—		—		128		—
Total	$	325,617	$	375	$	—	$	325,992	$	1,017
			'Total non-accrual loans to total loans							0.31	%
			'Total non-accrual loans to total assets							0.19	%

Summary of Nonperforming Loans

Non-performing loans are as follows:

	Years ended December 31,
	2022		2021
Nonaccrual loans, other than troubled debt restructurings	$	586	$	826
Nonaccrual loans, troubled debt restructurings		183		191
Total nonperforming loans (NPLs)	$	769	$	1,017
Troubled debt restructurings, accruing	$	355	$	418