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Loan Quality And Allowance For Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Loan Quality And Allowance For Loan Losses [Abstract]

Allowance For Loan Losses, By Loan Segment

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 March 31, 2022	$	480	$	253	$	329	$	7,962	$	5,183	$	125	$	718	$	15,050
Charge-offs		—		—		—		—		(62)		(22)		—		(84)
Recoveries		32		—		—		—		7		10		—		49
Provision		(47)		(8)		(40)		134		(52)		6		7		—
ALL at June 30, 2022	$	465	$	245	$	289	$	8,096	$	5,076	$	119	$	725	$	15,015

ALL at December 31, 2021	$	475	$	252	$	325	$	8,168	$	5,127	$	130	$	589	$	15,066
Charge-offs		(20)		—		—		—		(63)		(46)		—		(129)
Recoveries		47		1		—		—		12		18		—		78
Provision		(37)		(8)		(36)		(72)		—		17		136		—
ALL at June 30, 2022	$	465	$	245	$	289	$	8,096	$	5,076	$	119	$	725	$	15,015

ALL at March 31, 2021	$	447	$	211	$	318	$	8,785	$	5,473	$	113	$	789	$	16,136
Charge-offs		—		—		(28)		—		(3)		(18)		—		(49)
Recoveries		—		1		—		1		54		12		—		68
Provision		12		8		59		(908)		(215)		(5)		(51)		(1,100)
ALL at June 30, 2021	$	459	$	220	$	349	$	7,878	$	5,309	$	102	$	738	$	15,055

ALL at December 31, 2020	$	555	$	226	$	294	$	9,163	$	5,679	$	97	$	775	$	16,789
Charge-offs		—		—		(28)		(13)		(8)		(36)		—		(85)
Recoveries		—		170		—		1		61		19		—		251
Provision		(96)		(176)		83		(1,273)		(423)		22		(37)		(1,900)
ALL at June 30, 2021	$	459	$	220	$	349	$	7,878	$	5,309	$	102	$	738	$	15,055

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
June 30, 2022
Loans evaluated for ALL:
Individually	$	638	$	—	$	—	$	9,170	$	—	$	—	$	—	$	9,808
Collectively		135,937		74,006		18,938		553,655		236,293		5,986		—		1,024,815
Total	$	136,575	$	74,006	$	18,938	$	562,825	$	236,293	$	5,986	$	—	$	1,034,623

ALL established for ‎ loans evaluated:
Individually	$	—	$	—	$	—	$	514	$	—	$	—	$	—	$	514
Collectively		465		245		289		7,582		5,076		119		725		14,501
ALL at June 30, 2022	$	465	$	245	$	289	$	8,096	$	5,076	$	119	$	725	$	15,015

December 31, 2021
Loans evaluated for ALL:
Individually	$	661	$	—	$	424	$	10,520	$	—	$	—	$	—	$	11,605
Collectively		131,822		71,944		20,233		512,259		244,543		6,406		—		987,207
Total	$	132,483	$	71,944	$	20,657	$	522,779	$	244,543	$	6,406	$	—	$	998,812

ALL established for ‎ loans evaluated:
Individually	$	—	$	—	$	—	$	698	$	—	$	—	$	—	$	698
Collectively		475		252		325		7,470		5,127		130		589		14,368
ALL at December 31, 2021	$	475	$	252	$	325	$	8,168	$	5,127	$	130	$	589	$	15,066

Impaired Financing Receivables

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
June 30, 2022	Investment		Balance		Investment		Balance		Allowance
Residential Real Estate 1-4 Family
First liens	$	638	$	638	$	—	$	—	$	—
Junior liens and lines of credit		—		—		—		—		—
Total		638		638		—		—		—
Residential real estate - construction		—		—		—		—		—
Commercial real estate		3,775		4,078		5,395		5,796		514
Commercial		—		—		—		—		—
Total	$	4,413	$	4,716	$	5,395	$	5,796	$	514


December 31, 2021
Residential Real Estate 1-4 Family
First liens	$	661	$	661	$	—	$	—	$	—
Junior liens and lines of credit		—		—		—		—		—
Total		661		661		—		—		—
Residential real estate - construction		424		729		—		—		—
Commercial real estate		4,942		5,405		5,578		5,764		698
Commercial		—		—		—		—		—
Total	$	6,027	$	6,795	$	5,578	$	5,764	$	698

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


	Three Months Ended				Six Months Ended
	June 30, 2022				June 30, 2022
	Average		Interest		Average		Interest
(Dollars in thousands)	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Residential Real Estate 1-4 Family
First liens	$	647	$	9	$	651	$	16
Junior liens and lines of credit		—		—		—		—
Total		647		9		651		16
Residential real estate - construction		—		104		211		105
Commercial real estate		9,375		226		9,815		274
Commercial		—		—		—		—
Total	$	10,022	$	339	$	10,677	$	395

	Three Months Ended				Six Months Ended
	June 30, 2021				June 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	$	634	$	8	$	634	$	8
Junior liens and lines of credit		—		—		—		—
Total		634		8		634		8
Residential real estate - construction		512		—		512		—
Commercial real estate		16,043		91		16,043		91
Commercial		—		—		—		—
Total	$	17,189	$	99	$	17,189	$	99

Aging Of Payments Of The Loan Portfolio

At June 30, 2022, the Bank had $38 thousand of residential properties in the process of foreclosure compared to $38 thousand at the end of 2021. 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
June 30, 2022
Residential Real Estate 1-4 Family
First liens	$	136,124	$	161	$	170	$	—	$	331	$	120	$	136,575
Junior liens and lines of credit		73,779		189		—		—		189		38		74,006
Total		209,903		350		170		—		520		158		210,581
Residential real estate - construction		18,938		—		—		—		—		—		18,938
Commercial real estate		557,100		111		64		—		175		5,550		562,825
Commercial		236,079		214		—		—		214		—		236,293
Consumer		5,917		47		8		14		69		—		5,986
Total	$	1,027,937	$	722	$	242	$	14	$	978	$	5,708	$	1,034,623



December 31, 2021
Residential Real Estate 1-4 Family
First liens	$	132,224	$	96	$	113	$	—	$	209	$	50	$	132,483
Junior liens and lines of credit		71,788		118		—		—		118		38		71,944
Total		204,012		214		113		—		327		88		204,427
Residential real estate - construction		20,233		—		—		—		—		424		20,657
Commercial real estate		515,487		293		187		—		480		6,812		522,779
Commercial		244,377		106		—		—		106		60		244,543
Consumer		6,368		27		11		—		38		—		6,406
Total	$	990,477	$	640	$	311	$	—	$	951	$	7,384	$	998,812

Internal Credit Rating For The Loan Portfolio

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

June 30, 2022
Residential Real Estate 1-4 Family
First liens	$	136,455	$	—	$	120	$	—	$	136,575
Junior liens and lines of credit		73,968		—		38		—		74,006
Total		210,423		—		158		—		210,581
Residential real estate - construction		18,938		—		—		—		18,938
Commercial real estate		546,382		1,369		15,074		—		562,825
Commercial		233,809		2,365		119		—		236,293
Consumer		5,986		—		—		—		5,986
Total	$	1,015,538	$	3,734	$	15,351	$	—	$	1,034,623



December 31, 2021
Residential Real Estate 1-4 Family
First liens	$	132,433	$	—	$	50	$	—	$	132,483
Junior liens and lines of credit		71,906		—		38		—		71,944
Total		204,339		—		88		—		204,427
Residential real estate - construction		20,233		—		424		—		20,657
Commercial real estate		486,903		19,006		16,870		—		522,779
Commercial		244,315		49		179		—		244,543
Consumer		6,406		—		—		—		6,406
Total	$	962,196	$	19,055	$	17,561	$	—	$	998,812

Troubled Debt Restructuring Loans

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
June 30, 2022
Residential real estate - construction	—	$	—	$	—	$	—	—	$	—
Residential real estate	5		639		639		—	—		—
Commercial real estate - owner occupied	4		824		824		—	—		—
Commercial real estate - farm land	3		1,498		1,498		—	—		—
Commercial real estate - construction and land development	1		1,360		1,360		—	—		—
Commercial real estate	1		92		92		—	—		—
Total	14	$	4,413	$	4,413	$	—	—	$	—


December 31, 2021
Residential real estate - construction	1	$	424	$	—	$	424	—	$	—
Residential real estate	5		661		661		—	—		—
Commercial real estate - owner occupied	4		1,161		1,161		—	—		—
Commercial real estate - farm land	4		1,664		1,664		—	—		—
Commercial real estate - construction and land development	1		1,360		1,360		—	—		—
Commercial real estate	2		294		294		—	—		—
Total	17	$	5,564	$	5,140	$	424	—	$	—

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

‎

There were no new TDR loans during the first half of 2022.

The following table reports new TDR loans during 2021, concession granted and the recorded investment as of June 30, 2022:

New During Period

Twelve Months Ended

Number of

Pre-TDR

After-TDR

Recorded

December 31, 2021

Contracts

Modification

Investment

Concession

Residential real estate

multiple