| Allowance for Credit Losses [Text Block] |
Note 4. Allowance for Loan Losses
The following tables present, as of March 31, 2022, December 31, 2021 and March 31, 2021, the total allowance for loan losses, the allowance by impairment methodology, and loans by impairment methodology (in thousands):
| | | March 31, 2022 | |
| | | Construction and Land Development | | | Secured by 1-4 Family Residential | | | Other Real Estate | | | Commercial and Industrial | | | Consumer and Other Loans | | | Total | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning Balance, December 31, 2021 | | $ | 345 | | | $ | 1,077 | | | $ | 3,230 | | | $ | 718 | | | $ | 340 | | | $ | 5,710 | |
| Charge-offs | | | — | | | | — | | | | — | | | | (8 | ) | | | (98 | ) | | | (106 | ) |
| Recoveries | | | 4 | | | | 5 | | | | 2 | | | | 140 | | | | 73 | | | | 224 | |
| Provision for (recovery of) loan losses | | | (1 | ) | | | (113 | ) | | | 145 | | | | (40 | ) | | | 9 | | | | — | |
| Ending Balance, March 31, 2022 | | $ | 348 | | | $ | 969 | | | $ | 3,377 | | | $ | 810 | | | $ | 324 | | | $ | 5,828 | |
| Ending Balance: | | | | | | | | | | | | | | | | | | | | | | | | |
| Individually evaluated for impairment | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Collectively evaluated for impairment | | | 348 | | | | 969 | | | | 3,377 | | | | 810 | | | | 324 | | | | 5,828 | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending Balance | | $ | 49,308 | | | $ | 290,408 | | | $ | 384,191 | | | $ | 103,682 | | | $ | 8,834 | | | $ | 836,423 | |
| Individually evaluated for impairment | | | — | | | | 619 | | | | 28 | | | | 1,483 | | | | — | | | | 2,130 | |
| Collectively evaluated for impairment | | | 49,308 | | | | 289,789 | | | | 384,163 | | | | 102,199 | | | | 8,834 | | | | 834,293 | |
| | | December 31, 2021 | |
| | | Construction and Land Development | | | Secured by 1-4 Family Residential | | | Other Real Estate | | | Commercial and Industrial | | | Consumer and Other Loans | | | Total | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning Balance, December 31, 2020 | | $ | 306 | | | $ | 1,022 | | | $ | 4,956 | | | $ | 784 | | | $ | 417 | | | $ | 7,485 | |
| Charge-offs | | | — | | | | (15 | ) | | | (992 | ) | | | (6 | ) | | | (434 | ) | | | (1,447 | ) |
| Recoveries | | | 6 | | | | 65 | | | | 3 | | | | 7 | | | | 241 | | | | 322 | |
| Provision for (recovery of) loan losses | | | 33 | | | | 5 | | | | (737 | ) | | | (67 | ) | | | 116 | | | | (650 | ) |
| Ending Balance, December 31, 2021 | | $ | 345 | | | $ | 1,077 | | | $ | 3,230 | | | $ | 718 | | | $ | 340 | | | $ | 5,710 | |
| Ending Balance: | | | | | | | | | | | | | | | | | | | | | | | | |
| Individually evaluated for impairment | | | — | | | | — | | | | — | | | | 55 | | | | — | | | | 55 | |
| Collectively evaluated for impairment | | | 345 | | | | 1,077 | | | | 3,230 | | | | 663 | | | | 340 | | | | 5,655 | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending Balance | | $ | 55,721 | | | $ | 291,990 | | | $ | 364,921 | | | $ | 99,805 | | | $ | 12,681 | | | $ | 825,118 | |
| Individually evaluated for impairment | | | — | | | | 765 | | | | 30 | | | | 1,509 | | | | — | | | | 2,304 | |
| Collectively evaluated for impairment | | | 55,721 | | | | 291,225 | | | | 364,891 | | | | 98,296 | | | | 12,681 | | | | 822,814 | |
| | | March 31, 2021 | |
| | | Construction and Land Development | | | Secured by 1-4 Family Residential | | | Other Real Estate | | | Commercial and Industrial | | | Consumer and Other Loans | | | Total | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning Balance, December 31, 2020 | | $ | 306 | | | $ | 1,022 | | | $ | 4,956 | | | $ | 784 | | | $ | 417 | | | $ | 7,485 | |
| Charge-offs | | | — | | | | — | | | | — | | | | — | | | | (66 | ) | | | (66 | ) |
| Recoveries | | | — | | | | 2 | | | | 1 | | | | 2 | | | | 62 | | | | 67 | |
| Provision for (recovery of) loan losses | | | (16 | ) | | | 7 | | | | 39 | | | | 46 | | | | (76 | ) | | | — | |
| Ending Balance, March 31, 2021 | | $ | 290 | | | $ | 1,031 | | | $ | 4,996 | | | $ | 832 | | | $ | 337 | | | $ | 7,486 | |
| Ending Balance: | | | | | | | | | | | | | | | | | | | | | | | | |
| Individually evaluated for impairment | | | — | | | | — | | | | 2,065 | | | | 123 | | | | — | | | | 2,188 | |
| Collectively evaluated for impairment | | | 290 | | | | 1,031 | | | | 2,931 | | | | 709 | | | | 337 | | | | 5,298 | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending Balance | | $ | 25,720 | | | $ | 236,870 | | | $ | 248,864 | | | $ | 117,545 | | | $ | 9,203 | | | $ | 638,202 | |
| Individually evaluated for impairment | | | 269 | | | | 430 | | | | 4,567 | | | | 1,548 | | | | — | | | | 6,814 | |
| Collectively evaluated for impairment | | | 25,451 | | | | 236,440 | | | | 244,297 | | | | 115,997 | | | | 9,203 | | | | 631,388 | |
Impaired loans and the related allowance at March 31, 2022, December 31, 2021 and March 31, 2021, were as follows (in thousands):
| | | March 31, 2022 | |
| | | Unpaid Principal Balance | | | Recorded Investment with No Allowance | | | Recorded Investment with Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | | Interest Income Recognized | |
| Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Secured by 1-4 family residential | | $ | 743 | | | $ | 618 | | | $ | — | | | $ | 618 | | | $ | — | | | $ | 732 | | | $ | 1 | |
| Other real estate loans | | | 39 | | | | 28 | | | | — | | | | 28 | | | | — | | | | 29 | | | | — | |
| Commercial and industrial | | | 1,680 | | | | 1,484 | | | | — | | | | 1,484 | | | | — | | | | 1,491 | | | | — | |
| Total | | | 2,462 | | | | 2,130 | | | | — | | | | 2,130 | | | | — | | | | 2,252 | | | | 1 | |
| | | December 31, 2021 | |
| | | Unpaid Principal Balance | | | Recorded Investment with No Allowance | | | Recorded Investment with Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | | Interest Income Recognized | |
| Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 91 | | | $ | — | |
| Secured by 1-4 family residential | | | 889 | | | | 765 | | | | — | | | | 765 | | | | — | | | | 429 | | | | 9 | |
| Other real estate loans | | | 40 | | | | 30 | | | | — | | | | 30 | | | | — | | | | 2,384 | | | | — | |
| Commercial and industrial | | | 1,673 | | | | — | | | | 1,509 | | | | 1,509 | | | | 55 | | | | 1,613 | | | | — | |
| Total | | $ | 2,602 | | | $ | 795 | | | $ | 1,509 | | | $ | 2,304 | | | $ | 55 | | | $ | 4,517 | | | $ | 9 | |
| | | March 31, 2021 | |
| | | Unpaid Principal Balance | | | Recorded Investment with No Allowance | | | Recorded Investment with Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | | Interest Income Recognized | |
| Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | $ | 323 | | | $ | 269 | | | $ | — | | | $ | 269 | | | $ | — | | | $ | 273 | | | $ | — | |
| Secured by 1-4 family residential | | | 556 | | | | 430 | | | | — | | | | 430 | | | | — | | | | 440 | | | | — | |
| Other real estate loans | | | 4,619 | | | | 297 | | | | 4,270 | | | | 4,567 | | | | 2,065 | | | | 4,443 | | | | 1 | |
| Commercial and industrial | | | 1,639 | | | | — | | | | 1,548 | | | | 1,548 | | | | 123 | | | | 1,548 | | | | — | |
| Total | | $ | 7,137 | | | $ | 996 | | | $ | 5,818 | | | $ | 6,814 | | | $ | 2,188 | | | $ | 6,704 | | | $ | 1 | |
The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans. Only loan classes with balances are included in the tables above.
As of March 31, 2022, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $1.6 million. At March 31, 2022, none of the loans classified as TDRs were performing under the restructured terms and all were considered non-performing assets. There were $1.6 million in TDRs at December 31, 2021, $7 thousand of which were performing under the restructured terms. Modified terms under TDRs may include rate reductions, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. There were no loans modified under TDRs during the three months ended March 31, 2022 and 2021.
For the three months ended March 31, 2022 and 2021, there were no TDRs that subsequently defaulted within twelve months of the loan modification. Management defines default as over ninety days past due or the foreclosure and repossession of the collateral or charge-off of the loan during the twelve month period subsequent to the modification.
During the fourth quarter of 2020, the Company modified terms of certain loans for customers that continued to be negatively impacted by the COVID-19 pandemic. The loan modifications lowered borrower loan payments by allowing interest only payments for periods ranging between 6 and 24 months. As of March 31, 2022, loans that were modified totaled $8.9 million. All modified loans were performing and were not considered TDRs because they were modified in accordance with relief provisions of the CARES Act.
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