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Loan Quality And Allowance For Loan Losses
 9 Months Ended
Sep. 30, 2022
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, 2022

$

465 

$

245 

$

289 

$

8,096 

$

5,076 

$

119 

$

725 

$

15,015 

Charge-offs

—

—

—

—

(6)

(33)

—

(39)

Recoveries

—

1 

—

—

8 

4 

—

13 

Provision

(4)

3 

75 

9 

(33)

38 

(88)

—

ALL at September 30, 2022

$

461 

$

249 

$

364 

$

8,105 

$

5,045 

$

128 

$

637 

$

14,989 

ALL at December 31, 2021

$

475 

$

252 

$

325 

$

8,168 

$

5,127 

$

130 

$

589 

$

15,066 

Charge-offs

(20)

—

—

—

(69)

(79)

—

(168)

Recoveries

47 

2 

—

—

20 

22 

—

91 

Provision

(41)

(5)

39 

(63)

(33)

55 

48 

—

ALL at September 30, 2022

$

461 

$

249 

$

364 

$

8,105 

$

5,045 

$

128 

$

637 

$

14,989 

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 

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, 2022

Loans evaluated for ALL:

Individually

$

631 

$

—

$

—

$

9,021 

$

—

$

—

$

—

$

9,652 

Collectively

138,274 

74,749 

23,901 

562,405 

233,427 

6,099 

—

1,038,855 

Total

$

138,905 

$

74,749 

$

23,901 

$

571,426 

$

233,427 

$

6,099 

$

—

$

1,048,507 

ALL established for
‎  loans evaluated:

Individually

$

—

$

—

$

—

$

415 

$

—

$

—

$

—

$

415 

Collectively

461 

249 

364 

7,690 

5,045 

128 

637 

14,574 

ALL at September 30, 2022

$

461 

$

249 

$

364 

$

8,105 

$

5,045 

$

128 

$

637 

$

14,989 

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 


‎

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, 2022

Investment

Balance

Investment

Balance

Allowance

Residential Real Estate 1-4 Family

First liens

$

631

$

631

$

—

$

—

$

—

Junior liens and lines of credit

—

—

—

—

—

Total

631

631

—

—

—

Residential real estate - construction

—

—

—

—

—

Commercial real estate

3,725

3,725

5,296

5,796

415

Commercial

—

—

—

—

—

Total

$

4,356

$

4,356

$

5,296

$

5,796

$

415

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

Nine Months Ended

September 30, 2022

September 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

$

635

$

6

$

646

$

23

Junior liens and lines of credit

—

—

—

—

Total

635

6

646

23

Residential real estate - construction

—

—

141

105

Commercial real estate

9,082

46

9,571

320

Commercial

—

—

—

—

Total

$

9,717

$

52

$

10,358

$

448

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


‎

At September 30, 2022, the Bank had $38 thousand of residential properties in the process of foreclosure compared to $157 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

September 30, 2022

Residential Real Estate 1-4 Family

First liens

$

138,437 

$

241 

$

107 

$

—

$

348 

$

120 

$

138,905 

Junior liens and lines of credit

74,515 

147 

49 

—

196 

38 

74,749 

Total

212,952 

388 

156 

—

544 

158 

213,654 

Residential real estate - construction

23,901 

—

—

—

—

—

23,901 

Commercial real estate

565,301 

592 

105 

—

697 

5,428 

571,426 

Commercial

233,274 

139 

14 

—

153 

—

233,427 

Consumer

6,055 

35 

2 

7 

44 

—

6,099 

Total

$

1,041,483 

$

1,154 

$

277 

$

7 

$

1,438 

$

5,586 

$

1,048,507 

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 


‎

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, 2022

Residential Real Estate 1-4 Family

First liens

$

138,785 

$

—

$

120 

$

—

$

138,905 

Junior liens and lines of credit

74,711 

—

38 

—

74,749 

Total

213,496 

—

158 

—

213,654 

Residential real estate - construction

23,901 

—

—

—

23,901 

Commercial real estate

555,485 

1,104 

14,837 

—

571,426 

Commercial

230,737 

2,571 

119 

—

233,427 

Consumer

6,099 

—

—

—

6,099 

Total

$

1,029,718 

$

3,675 

$

15,114 

$

—

$

1,048,507 

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 

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, 2022

Residential real estate - construction

—

$

—

$

—

$

—

—

$

—

Residential real estate

5 

631 

631 

—

—

—

Commercial real estate - owner occupied

3 

795 

795 

—

—

—

Commercial real estate - farm land

3 

1,482 

1,482 

—

—

—

Commercial real estate - construction and land development

1 

1,360 

1,360 

—

—

—

Commercial real estate - other

1 

87 

87 

—

—

—

Total

13 

$

4,355 

$

4,355 

$

—

—

$

—

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 - other

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 three or nine month periods ending September 30, 2022.

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

(Dollars in thousands)

New During Period

Twelve Months Ended

Number of

Pre-TDR

After-TDR

Recorded

December 31, 2021

Contracts

Modification

Modification

Investment

Concession

Residential real estate

1 

$

41 

$

50 

$

40 

multiple