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Loan Quality And Allowance For Loan Losses
 9 Months Ended
Sep. 30, 2021
Loan Quality And Allowance For Loan Losses [Abstract]  
Loan Quality And Allowance For Loan Losses Note 6. Loan Quality and Allowance for Loan Losses

The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods shown:

Residential Real Estate 1-4 Family

First

Junior Liens &

Commercial

(Dollars in thousands)

Liens

Lines of Credit

Construction

Real Estate

Commercial

Consumer

Unallocated

Total

ALL at June 30, 2021

$

459 

$

220 

$

349 

$

7,878 

$

5,309 

$

102 

$

738 

$

15,055 

Charge-offs

—

—

—

—

(3)

(126)

—

(129)

Recoveries

—

—

—

—

436 

4 

—

440 

Provision

33 

25 

18 

810 

(856)

157 

(187)

—

ALL at September 30, 2021

$

492 

$

245 

$

367 

$

8,688 

$

4,886 

$

137 

$

551 

$

15,366 

ALL at December 31, 2020

$

555 

$

226 

$

294 

$

9,163 

$

5,679 

$

97 

$

775 

$

16,789 

Charge-offs

—

—

(28)

(13)

(11)

(162)

—

(214)

Recoveries

—

170 

—

1 

497 

23 

—

691 

Provision

(63)

(151)

101 

(463)

(1,279)

179 

(224)

(1,900)

ALL at September 30, 2021

$

492 

$

245 

$

367 

$

8,688 

$

4,886 

$

137 

$

551 

$

15,366 

ALL at June 30, 2020

$

580 

$

197 

$

242 

$

8,837 

$

5,845 

$

105 

$

749 

$

16,555 

Charge-offs

-

—

—

—

—

(28)

—

(28)

Recoveries

-

—

—

—

243 

6 

—

249 

Provision

(2)

14 

17 

372 

(52)

11 

15 

375 

ALL at September 30, 2020

$

578 

$

211 

$

259 

$

9,209 

$

6,036 

$

94 

$

764 

$

17,151 

ALL at December 31, 2019

$

416 

$

119 

$

187 

$

6,607 

$

4,021 

$

84 

$

532 

$

11,966 

Charge-offs

-

—

—

—

(365)

(87)

—

(452)

Recoveries

4 

—

—

—

267 

16 

—

287 

Provision

158 

92 

72 

2,602 

2,113 

81 

232 

5,350 

ALL at September 30, 2020

$

578 

$

211 

$

259 

$

9,209 

$

6,036 

$

94 

$

764 

$

17,151 

The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of the periods shown:

Residential Real Estate 1-4 Family

First

Junior Liens &

Commercial

(Dollars in thousands)

Liens

Lines of Credit

Construction

Real Estate

Commercial

Consumer

Unallocated

Total

September 30, 2021

Loans evaluated for ALL:

Individually

$

659 

$

—

$

426 

$

11,371 

$

—

$

—

$

—

$

12,456 

Collectively

133,620 

70,222 

21,652 

515,721 

257,693 

6,804 

—

1,005,712 

Total

$

134,279 

$

70,222 

$

22,078 

$

527,092 

$

257,693 

$

6,804 

$

—

$

1,018,168 

ALL established for
‎  loans evaluated:

Individually

$

—

$

—

$

—

$

1,308 

$

—

$

—

$

—

$

1,308 

Collectively

492 

245 

367 

7,380 

4,886 

137 

551 

14,058 

ALL at September 30, 2021

$

492 

$

245 

$

367 

$

8,688 

$

4,886 

$

137 

$

551 

$

15,366 

December 31, 2020

Loans evaluated for ALL:

Individually

$

637 

$

—

$

512 

$

16,104 

$

—

$

—

$

—

$

17,253 

Collectively

136,587 

65,360 

15,797 

487,873 

281,257 

5,577 

—

992,451 

Total

$

137,224 

$

65,360 

$

16,309 

$

503,977 

$

281,257 

$

5,577 

$

—

$

1,009,704 

ALL established for
‎  loans evaluated:

Individually

$

—

$

—

$

—

$

228 

$

—

$

—

$

—

$

228 

Collectively

555 

226 

294 

8,935 

5,679 

97 

775 

16,561 

ALL at December 31, 2020

$

555 

$

226 

$

294 

$

9,163 

$

5,679 

$

97 

$

775 

$

16,789 


‎

The following table shows additional information about those loans considered to be impaired as of the periods shown:

Impaired Loans

With No Allowance

With Allowance

(Dollars in thousands)

Unpaid

Unpaid

Recorded

Principal

Recorded

Principal

Related

September 30, 2021

Investment

Balance

Investment

Balance

Allowance

Residential Real Estate 1-4 Family

First liens

$

659

$

684

$

—

$

—

$

—

Junior liens and lines of credit

—

—

—

—

—

Total

659

684

—

—

—

Residential real estate - construction

426

729

—

—

—

Commercial real estate

5,684

6,479

5,687

5,796

1,308

Commercial

—

—

—

—

—

Total

$

6,769

$

7,892

$

5,687

$

5,796

$

1,308

December 31, 2020

Residential Real Estate 1-4 Family

First liens

$

637

$

637

$

—

$

—

$

—

Junior liens and lines of credit

—

—

—

—

—

Total

637

637

—

—

—

Residential real estate - construction

512

729

—

—

—

Commercial real estate

10,402

11,107

5,702

5,702

228

Commercial

—

—

—

—

—

Total

$

11,551

$

12,473

$

5,702

$

5,702

$

228

The following table shows the average balance of impaired loans and related interest income for the periods shown:

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2021

Average

Interest

Average

Interest

(Dollars in thousands)

Recorded

Income

Recorded

Income

Investment

Recognized

Investment

Recognized

Residential Real Estate 1-4 Family

First liens

$

663

$

8

$

655

$

24

Junior liens and lines of credit

—

—

—

—

Total

663

8

655

24

Residential real estate - construction

428

—

483

—

Commercial real estate

15,450

122

15,813

310

Commercial

—

—

—

—

Total

$

16,541

$

130

$

16,951

$

334

Three Months Ended

Nine Months Ended

September 30, 2020

September 30, 2020

Average

Interest

Average

Interest

(Dollars in thousands)

Recorded

Income

Recorded

Income

Investment

Recognized

Investment

Recognized

Residential Real Estate 1-4 Family

First liens

$

645

$

12

$

651

$

30

Junior liens and lines of credit

—

—

—

—

Total

645

12

651

30

Residential real estate - construction

517

—

519

—

Commercial real estate

16,580

93

13,041

280

Commercial

—

—

—

—

Total

$

17,742

$

105

$

14,211

$

310


‎

At September 30, 2021, the Bank had $38.0 thousand of residential properties in the process of foreclosure compared to $68.0 thousand at the end of 2020. The following table presents the aging of payments of the loan portfolio:

(Dollars in thousands)

Loans Past Due and Still Accruing

Total

Current

30-59 Days

60-89 Days

90 Days+

Total

Non-Accrual

Loans

September 30, 2021

Residential Real Estate 1-4 Family

First liens

$

133,998 

$

9 

$

231 

$

—

$

240 

$

41 

$

134,279 

Junior liens and lines of credit

70,105 

79 

—

—

79 

38 

70,222 

Total

204,103 

88 

231 

—

319 

79 

204,501 

Residential real estate - construction

21,652 

—

—

—

—

426 

22,078 

Commercial real estate

519,065 

—

—

—

—

8,027 

527,092 

Commercial

257,540 

53 

—

—

53 

100 

257,693 

Consumer

6,779 

21 

1 

3 

25 

—

6,804 

Total

$

1,009,139 

$

162 

$

232 

$

3 

$

397 

$

8,632 

$

1,018,168 

December 31, 2020

Residential Real Estate 1-4 Family

First liens

$

137,056 

$

43 

$

58 

$

26 

$

127 

$

41 

$

137,224 

Junior liens and lines of credit

65,212 

115 

23 

—

138 

10 

65,360 

Total

202,268 

158 

81 

26 

265 

51 

202,584 

Residential real estate - construction

15,797 

—

—

—

—

512 

16,309 

Commercial real estate

495,609 

74 

261 

—

335 

8,033 

503,977 

Commercial

280,930 

219 

—

—

219 

108 

281,257 

Consumer

5,525 

38 

2 

12 

52 

—

5,577 

Total

$

1,000,129 

$

489 

$

344 

$

38 

$

871 

$

8,704 

$

1,009,704 


‎

The following table reports the risk rating for those loans in the portfolio that are assigned an individual risk rating. Consumer purpose loans are assigned a rating of either pass or substandard based on the performance status of the loans. Substandard consumer loans are comprised of loans 90 days or more past due and still accruing, and nonaccrual loans. Commercial purpose loans may be assigned any rating in accordance with the Bank’s internal risk rating system.

Pass

OAEM

Substandard

Doubtful

(Dollars in thousands)

(1-5)

(6)

(7)

(8)

Total

September 30, 2021

Residential Real Estate 1-4 Family

First liens

$

134,279 

$

—

$

—

$

—

$

134,279 

Junior liens and lines of credit

70,222 

—

—

—

70,222 

Total

204,501 

—

—

—

204,501 

Residential real estate - construction

21,652 

—

426 

—

22,078 

Commercial real estate

471,021 

38,595 

17,476 

—

527,092 

Commercial

255,693 

1,780 

220 

—

257,693 

Consumer

6,804 

—

—

—

6,804 

Total

$

959,671 

$

40,375 

$

18,122 

$

—

$

1,018,168 

December 31, 2020

Residential Real Estate 1-4 Family

First liens

$

137,156 

$

—

$

68 

$

—

$

137,224 

Junior liens and lines of credit

65,350 

—

10 

—

65,360 

Total

202,506 

—

78 

—

202,584 

Residential real estate - construction

15,797 

—

512 

—

16,309 

Commercial real estate

449,478 

35,947 

18,552 

—

503,977 

Commercial

270,272 

10,698 

287 

—

281,257 

Consumer

5,565 

—

12 

—

5,577 

Total

$

943,618 

$

46,645 

$

19,441 

$

—

$

1,009,704 

The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans as of:

Troubled Debt Restructurings

Within the Last 12 Months

That Have Defaulted

(Dollars in thousands)

Troubled Debt Restructurings

On Modified Terms

Number of

Recorded

Number of

Recorded

Contracts

Investment

Performing*

Nonperforming*

Contracts

Investment

September 30, 2021

Residential real estate - construction

1 

$

427 

$

—

$

427 

—

$

—

Residential real estate

5 

658 

617 

41 

—

—

Commercial real estate - owner occupied

4 

1,181 

831 

350 

—

—

Commercial real estate - farm land

6 

2,173 

2,173 

—

—

—

Commercial real estate - construction and land development

2 

1,600 

1,360 

240 

—

—

Commercial real estate

2 

303 

107 

196 

—

—

Total

20 

$

6,342 

$

5,088 

$

1,254 

—

$

—

December 31, 2020

Residential real estate - construction

1 

$

434 

$

434 

$

—

—

$

—

Residential real estate

4 

637 

637 

—

—

—

Commercial real estate - owner occupied

4 

1,224 

1,224 

—

—

—

Commercial real estate - farm land

6 

2,257 

2,257 

—

—

—

Commercial real estate - construction and land development

2 

6,129 

6,129 

—

—

—

Commercial real estate

2 

330 

122 

208 

—

—

Total

19 

$

11,011 

$

10,803 

$

208 

—

$

—

*The performing status is determined by the loan’s compliance with the modified terms.


‎

The following table reports new TDR loans during 2021, concession granted and the recorded investment as of September 30, 2021:

New During Period

Nine Months Ended

Number of

Pre-TDR

After-TDR

Recorded

September 30, 2021

Contracts

Modification

Modification

Investment

Concession

Residential real estate

1 

$

41 

$

41 

$

41 

multiple

The following table reports new TDR loans during 2020, concession granted and the recorded investment as of September 30, 2021:

New During Period

Twelve Months Ended

Number of

Pre-TDR

After-TDR

Recorded

December 31, 2020

Contracts

Modification

Modification

Investment

Concession

Commercial real estate - farm land

1 

$

650 

$

650 

$

653 

multiple

Commercial real estate - owner occupied

2 

426 

426 

423 

maturity

3 

$

1,076 

$

1,076 

$

1,076