Loans and Related Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

Loans and Related Allowance for Credit Losses [Abstract]

Loan Portfolio by Class

The following table presents the loan portfolio by class at September 30, 2020 and December 31, 2019.

(Dollars in thousands)
	September 30, 2020		December 31, 2019
Commercial, financial and agricultural	$	71,859	$	51,785
Real estate - commercial		121,527		126,613
Real estate - construction		62,142		46,459
Real estate - mortgage		142,998		150,538
Obligations of states and political subdivisions		15,601		16,377
Personal		6,627		8,818
Total	$	420,754	$	400,590

Allowance for Loan Losses and Recorded Investments in Loans Receivable

The following table summarizes the activity in the allowance for loan losses by loan class, for the three and nine months ended September 30, 2020 and 2019.

(Dollars in thousands)							Obligations
	Commercial,						of states
	financial and		Real estate-		Real estate-		and political		Real estate-
	agricultural		commercial		construction		subdivisions		mortgage		Personal		Total
Three Months Ended
September 30, 2020
Balance, beginning of period	$	311	$	878	$	1,137	$	22	$	1,149	$	61	$	3,558
Provision for loan losses		(40)		(10)		145		(1)		(12)		5		87
Charge-offs		—		—		—		—		(3)		(10)		(13)
Recoveries		—		—		267		—		24		1		292
Balance, end of period	$	271	$	868	$	1,549	$	21	$	1,158	$	57	$	3,924
September 30, 2019
Balance, beginning of period	$	274	$	1,038	$	588	$	22	$	1,019	$	74	$	3,015
Provision for loan losses		(8)		—		(37)		1		(6)		4		(46)
Charge-offs		(2)		—		—		—		—		(11)		(13)
Recoveries		—		—		94		—		2		5		101
Balance, end of period	$	264	$	1,038	$	645	$	23	$	1,015	$	72	$	3,057
Nine Months Ended
September 30, 2020
Balance, beginning of period	$	321	$	754	$	718	$	17	$	1,081	$	70	$	2,961
Provision for loan losses		(50)		114		502		4		57		12		639
Charge-offs		—		—		—		—		(7)		(34)		(41)
Recoveries		—		—		329		—		27		9		365
Balance, end of period	$	271	$	868	$	1,549	$	21	$	1,158	$	57	$	3,924
September 30, 2019
Balance, beginning of period	$	275	$	1,074	$	558	$	20	$	1,035	$	72	$	3,034
Provision for loan losses		(12)		(335)		(200)		3		22		32		(490)
Charge-offs		(2)		(15)		—		—		(49)		(48)		(114)
Recoveries		3		314		287		—		7		16		627
Balance, end of period	$	264	$	1,038	$	645	$	23	$	1,015	$	72	$	3,057

(Dollars in thousands)							Obligations
	Commercial,						of states
	financial and		Real estate-		Real estate-		and political		Real estate-
	agricultural		commercial		construction		subdivisions		mortgage		Personal		Total
September 30, 2020
Loans allocated by:
individually evaluated for impairment	$	7	$	1,187	$	—	$	—	$	801	$	—	$	1,995
acquired with credit deterioration		—		348		—		—		644		—		992
collectively evaluated for impairment		71,852		119,992		62,142		15,601		141,553		6,627		417,767
	$	71,859	$	121,527	$	62,142	$	15,601	$	142,998	$	6,627	$	420,754
Allowance for loan losses allocated by:
individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
acquired with credit deterioration		—		—		—		—		—		—		—
collectively evaluated for impairment		271		868		1,549		21		1,158		57		3,924
	$	271	$	868	$	1,549	$	21	$	1,158	$	57	$	3,924
December 31, 2019
Loans allocated by:
individually evaluated for impairment	$	—	$	1,206	$	—	$	—	$	1,296	$	14	$	2,516
acquired with credit deterioration		—		366		—		—		704		—		1,070
collectively evaluated for impairment		51,785		125,041		46,459		16,377		148,538		8,804		397,004
	$	51,785	$	126,613	$	46,459	$	16,377	$	150,538	$	8,818	$	400,590
Allowance for loan losses allocated by:
individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
acquired with credit deterioration		—		—		—		—		—		—		—
collectively evaluated for impairment		321		754		718		17		1,081		70		2,961
	$	275	$	1,074	$	558	$	20	$	1,035	$	72	$	2,961

Impaired Loans by Loan Portfolio Class

The following table summarizes information regarding impaired loans by portfolio class as of September 30, 2020 and December 31, 2019.

(Dollars in thousands)	As of September 30, 2020						As of December 31, 2019
	Recorded		Unpaid Principal		Related		Recorded		Unpaid Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans
With no related allowance recorded:
Commercial, financial and agricultural	$	7	$	7	$	—	$	—	$	—	$	—
Real estate - commercial		1,187		1,288		—		1,206		1,304		—
Acquired with credit deterioration		348		390		—		366		395		—
Real estate – construction		—		964		—		—		1,054		—
Real estate - mortgage		726		1,459		—		1,296		2,006		—
Acquired with credit deterioration		644		811		—		704		840		—
Personal		—		—		—		14		14		—
With an allowance recorded:
Real estate - mortgage	$	75	$	74	$	—	$	—	$	—	$	—
Total:
Commercial, financial and agricultural	$	7	$	7	$	—	$	—	$	—	$	—
Real estate - commercial		1,187		1,288		—		1,206		1,304		—
Acquired with credit deterioration		348		390		—		366		395		—
Real estate - construction		—		964		—		—		1,054		—
Real estate – mortgage		801		1,533		—		1,296		2,006		—
Acquired with credit deterioration		644		811		—		704		840		—
Personal		—		—		—		14		14		—
	$	2,987	$	4,993	$	—	$	3,586	$	5,613	$	—

(Dollars in thousands)	Three Months Ended September 30, 2020						Three Months Ended September 30, 2019
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Income		Investment		Recognized		Income
Impaired loans
With no related allowance recorded:
Commercial, financial and agricultural	$	161	$	—	$	—	$	750	$	—	$	12
Real estate - commercial		1,722		5		6		1,232		5		16
Acquired with credit deterioration		351		—		—		381		—		—
Real estate - mortgage		735		4		11		1,284		4		12
Acquired with credit deterioration		650		—		—		763		—		—
Personal		—		—		—		14		—		—
With an allowance recorded:
Real estate - mortgage	$	75	$	—	$	—	$	—	$	—	$	—
Total:
Commercial, financial and agricultural	$	161	$	—	$	—	$	750	$	—	$	12
Real estate - commercial		1,722		5		6		1,232		5		16
Acquired with credit deterioration		351		—		—		381		—		—
Real estate - mortgage		810		4		11		1,284		4		12
Acquired with credit deterioration		650		—		—		763		—		—
Personal		—		—		—		14		—		—
	$	3,694	$	9	$	17	$	4,424	$	9	$	40

(Dollars in thousands)	Nine Months Ended September 30, 2020						Nine Months Ended September 30, 2019
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Income		Investment		Recognized		Income
Impaired Loans
With no related allowance recorded:
Commercial, financial and agricultural	$	310	$	—	$	—	$	369	$	22	$	12
Real estate - commercial		2,405		15		26		1,066		40		16
Acquired with credit deterioration		355		—		—		460		—		—
Real estate - construction		—		—		—		14		—		—
Real estate - mortgage		939		12		33		1,238		13		35
Acquired with credit deterioration		669		—		—		860		—		—
Personal		3		—		—		16		—		—
With an allowance recorded:
Real estate - mortgage	$	106	$	—	$	—	$	—	$	—	$	—
Total:
Commercial, financial and agricultural	$	310	$	—	$	—	$	369	$	22	$	12
Real estate - commercial		2,405		15		26		1,066		40		16
Acquired with credit deterioration		355		—		—		460		—		—
Real estate - construction		—		—		—		14		—		—
Real estate - mortgage		1,045		12		33		1,238		13		35
Acquired with credit deterioration		669		—		—		860		—		—
Personal		3		—		—		16		—		—
	$	4,787	$	27	$	59	$	4,023	$	75	$	63

Nonaccrual Loans by Classes of the Loan Portfolio

The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2020 and December 31, 2019.

(Dollars in thousands)
	September 30, 2020		December 31, 2019
Non-accrual loans:
Commercial, financial and agricultural	$	7	$	—
Real estate - commercial		887		903
Real estate - mortgage		433		902
Personal		—		14
Total	$	1,327	$	1,819

Loan Portfolio Summarized by the Past Due Status

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. Past due status is determined by the contractual terms of the loan. The following tables present the classes of the loan portfolio summarized by the past due status as of September 30, 2020 and December 31, 2019.

													Loans
													Past Due
													Greater
(Dollars in thousands)							Greater						than 89
			30‑59 Days		60‑89 Days		than 89		Total Past				Days and
	Current		Past Due(2)		Past Due		Days		Due		Total Loans		Accruing(1)
As of September 30, 2020
Commercial, financial and agricultural	$	71,859	$	—	$	—	$	—	$	—	$	71,859	$	—
Real estate - commercial		121,136		—		—		43		43		121,179		—
Real estate - construction		61,969		—		—		173		173		62,142		173
Real estate - mortgage		141,732		86		253		283		622		142,354		134
Obligations of states and political subdivisions		15,601		—		—		—		—		15,601		—
Personal		6,609		18		—		—		18		6,627		—
Subtotal		418,906		104		253		499		856		419,762		307
Loans acquired with credit deterioration
Real estate - commercial		348		—		—		—		—		348		—
Real estate - mortgage		418		134		—		92		226		644		92
Subtotal		766		134		—		92		226		992		92
	$	419,672	$	238	$	253	$	591	$	1,082	$	420,754	$	399

													Loans
													Past Due
													Greater
(Dollars in thousands)							Greater						than 89
			30‑59 Days		60‑89 Days		than 89		Total Past				Days and
	Current		Past Due(2)		Past Due		Days		Due		Total Loans		Accruing(1)
As of December 31, 2019
Commercial, financial and agricultural	$	51,725	$	60	$	—	$	—	$	60	$	51,785	$	—
Real estate - commercial		126,180		19		—		48		67		126,247		—
Real estate - construction		46,172		287		—		—		287		46,459		—
Real estate - mortgage		148,366		348		149		971		1,468		149,834		359
Obligations of states and political subdivisions		16,377		—		—		—		—		16,377		—
Personal		8,725		55		—		38		93		8,818		24
Subtotal		397,545		769		149		1,057		1,975		399,520		383
Loans acquired with credit deterioration
Real estate - commercial		366		—		—		—		—		366		—
Real estate - mortgage		330		371		—		3		374		704		3
Subtotal		696		371		—		3		374		1,070		3
	$	398,241	$	1,140	$	149	$	1,060	$	2,349	$	400,590	$	386

(1) These loans are guaranteed, or well-secured, and there is an effective means of collection in process.

(2) Loans are considered past due when the borrower is in arrears on two or more monthly payments.

Troubled Debt Restructurings on Financing Receivables

The following tables summarize information regarding troubled debt restructurings by loan portfolio class at September 30, 2020 and December 31, 2019.

(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
As of September 30, 2020
Accruing troubled debt restructurings:
Real estate - commercial	1	$	306	$	326	$	302
Real estate - mortgage	7		488		516		367
	8	$	794	$	842	$	669

(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
As of December 31, 2019
Accruing troubled debt restructurings:
Real estate - commercial	1	$	306	$	326	$	306
Real estate - mortgage	7		488		516		397
	8	$	794	$	842	$	703

Summary of Loans Whose Terms Have Been Modified

There were no loan terms modified resulting in troubled debt restructuring during the three and nine months ended September 30, 2020, nor during the three months ended September 30, 2019. The following table lists the loan whose terms were modified resulting in a troubled debt restructuring during the nine months ended September 30, 2019.

(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
Nine months ended September 30, 2019
Accruing troubled debt restructurings:
Real estate - commercial	1	$	306	$	326	$	314
Real estate - mortgage	1		9		9		6
	2	$	315	$	335	$	320

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of September 30, 2020 and December 31, 2019. The increase in the special mention category at September 30, 2020 compared to December 31, 2019 was predominantly the result of downgrading four participated hospitality and recreational facility relationships, totaling $20,000,000, from pass to special mention in 2020. Partially offsetting this increase was the payoff of a $4,800,000 special mention relationship during 2020.

(Dollars in thousands)			Special
As of September 30, 2020	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	70,263	$	1,047	$	549	$	—	$	71,859
Real estate - commercial		109,233		4,177		8,074		43		121,527
Real estate - construction		44,709		16,968		465		—		62,142
Real estate - mortgage		141,252		302		1,392		52		142,998
Obligations of states and political subdivisions		15,601		—		—		—		15,601
Personal		6,627		—		—		—		6,627
Total	$	387,685	$	22,494	$	10,480	$	95	$	420,754

(Dollars in thousands)			Special
As of December 31, 2019	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	46,725	$	4,080	$	980	$	—	$	51,785
Real estate - commercial		113,851		5,668		7,046		48		126,613
Real estate - construction		44,954		287		1,218		—		46,459
Real estate - mortgage		148,164		327		1,951		96		150,538
Obligations of states and political subdivisions		16,377		—		—		—		16,377
Personal		8,804		—		14		—		8,818
Total	$	378,875	$	10,362	$	11,209	$	144	$	400,590