Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Allowance for Loan Losses

Summary loan loss allowance transactions

September 30, 2021	Beginning Balance		Charge-offs		Recoveries		Provision			Ending Balance		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
Allowance for loan losses:
Construction/Land Development	$	1,249	$	-	$	307	$	(631	)	$	925	$	-	$	925
Farmland		731		-		-		(262	)		469		-		469
Real Estate		1,624		-		34		(323	)		1,335		169		1,166
Multi-Family		54		-		-		(25	)		29		-		29
Commercial Real Estate		3,662		-		19		(945	)		2,736		617		2,119
Home Equity – closed end		55		-		-		(11	)		44		-		44
Home Equity – open end		463		-		13		(68	)		408		-		408
Commercial & Industrial – Non-Real Estate		363		-		30		(95	)		298		-		298
Consumer		521		18		20		3			526		-		526
Dealer Finance		1,674		746		520		146			1,594		14		1,580
Credit Cards		79		30		17		1			67		-		67
Total	$	10,475	$	794	$	960	$	(2,210	)	$	8,431	$	800	$	7,631

December 31, 2020	Beginning Balance		Charge-offs		Recoveries		Provision			Ending Balance		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
Allowance for loan losses:
Construction/Land Development	$	1,190	$	7	$	-	$	66		$	1,249	$	-	$	1,249
Farmland		668		-		-		63			731		370		361
Real Estate		1,573		158		7		202			1,624		365		1,259
Multi-Family		20		-		-		34			54		-		54
Commercial Real Estate		1,815		64		11		1,900			3,662		1,833		1,829
Home Equity – closed end		42		-		-		13			55		-		55
Home Equity – open end		457		34		3		37			463		-		463
Commercial & Industrial – Non-Real Estate		585		138		19		(103	)		363		-		363
Consumer		186		89		50		374			521		1		520
Dealer Finance		1,786		1,551		784		655			1,674		15		1,659
Credit Cards		68		123		75		59			79		-		79
Total	$	8,390	$	2,164	$	949	$	3,300		$	10,475	$	2,584	$	7,891

Schedule of recorded investment in loans

September 30, 2021	Loan Receivable			Individually Evaluated for Impairment		Collectively Evaluated for Impairment
Construction/Land Development	$	70,102		$	733	$	69,369
Farmland		66,367			2,371		63,996
Real Estate		145,647			4,157		141,490
Multi-Family		4,632			-		4,632
Commercial Real Estate		156,504			14,558		141,946
Home Equity – closed end		6,365			161		6,204
Home Equity –open end		42,872			-		42,872
Commercial & Industrial – Non-Real Estate		48,133			-		48,133
Consumer		8,239			-		8,239
Dealer Finance		104,418			118		104,300
Credit Cards		2,790			-		2,790
Gross loans		656,069			22,098		633,971
Less: Deferred loan fees, net of costs		(238	)		-		(238	)
Total	$	665,831		$	22,098	$	633,733

December 31, 2020	Loan Receivable		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
Construction/Land Development	$	71,467	$	1,693	$	69,774
Farmland		53,728		1,737		51,991
Real Estate		163,018		13,791		149,227
Multi-Family		5,918		-		5,918
Commercial Real Estate		142,516		16,056		126,460
Home Equity – closed end		8,476		687		7,789
Home Equity –open end		46,613		151		46,462
Commercial & Industrial – Non-Real Estate		65,470		8		65,462
Consumer		9,405		1		9,404
Dealer Finance		91,861		155		91,706
Credit Cards		2,857		-		2,857
Total	$	661,329	$	34,279	$	627,050

	Calculated Provision Based on Current Methodology			Current Provision Based on Prior Methodology			Difference
Construction/Land Development	$	(631	)	$	(952	)	$	321
Farmland		(262	)		(262	)		-
Real Estate		(323	)		(325	)		2
Multi-Family		(25	)		(25	)		-
Commercial Real Estate		(945	)		(1,611	)		666
Home Equity – closed end		(11	)		(11	)		-
Home Equity – open end		(68	)		(102	)		34
Commercial & Industrial – Non-Real Estate		(95	)		(111	)		16
Consumer		3			(400	)		403
Dealer Finance		146			17			129
Credit Cards		1			(1	)		2
	$	(2,210	)	$	(3,783	)	$	1,573

Schedule of loan portfolio

September 30, 2021	Grade 1 Minimal Risk		Grade 2 Modest Risk		Grade 3 Average Risk		Grade 4 Acceptable Risk		Grade 5 Marginally Acceptable		Grade 6 Watch		Grade 7 Substandard		Grade 8 Doubtful		Total
Construction/Land Development	$	-	$	6	$	8,747	$	41,664	$	17,535	$	1,883	$	267	$	-	$	70,102
Farmland		57		298		6,755		40,732		15,471		1,659		1,395		-		66,367
Real Estate		-		1,591		33,758		63,923		28,714		12,585		5,076		-		145,647
Multi-Family		-		-		1,590		1,748		1,164		130		-		-		4,632
Commercial Real Estate		-		4,543		32,466		61,433		30,433		14,847		12,782		-		156,504
Home Equity – closed end		-		64		1,253		3,244		715		1,089		-		-		6,365
Home Equity – open end		-		1,259		16,395		21,253		2,223		1,526		216		-		42,872
Commercial & Industrial -Non-Real Estate		-		716		9,425		21,316		16,086		569		21		-		48,133
Consumer (excluding dealer)		-		477		3,120		3,600		1,020		22		-		-		8,239
Gross Loans	$	57	$	8,954	$	113,509	$	258,913	$	113,361	$	34,310	$	19,757	$	-	$	548,861
Less: Deferred loan fees, net of costs																		(238	)
Total																	$	548,623

	Credit Cards		Dealer Finance
Performing	$	2,770	$	104,389
Non-performing		20		29
Total	$	2,790	$	104,418

December 31, 2020	Grade 1 Minimal Risk		Grade 2 Modest Risk		Grade 3 Average Risk		Grade 4 Acceptable Risk		Grade 5 Marginally Acceptable		Grade 6 Watch		Grade 7 Substandard		Grade 8 Doubtful		Total
Construction/Land Development	$	-	$	142	$	8,448	$	40,126	$	18,226	$	4,274	$	251	$	-	$	71,467
Farmland		58		459		11,707		26,899		11,846		1,022		1,737		-		53,728
Real Estate		-		2,283		39,223		66,698		32,302		6,977		15,535		-		163,018
Multi-Family		-		-		1,075		3,509		1,334		-		-		-		5,918
Commercial Real Estate		-		4,114		31,205		47,477		26,677		18,637		14,406		-		142,516
Home Equity – closed end		-		124		2,479		3,289		759		1,795		30		-		8,476
Home Equity – open end		-		1,705		17,716		22,014		3,171		1,477		530		-		46,613
Commercial & Industrial - Non-Real Estate		90		1,524		7,601		17,050		38,290		913		2		-		65,470
Consumer (excluding dealer)		-		173		3,461		3,975		1,790		6		-		-		9,405
Total	$	148	$	10,524	$	122,915	$	231,037	$	134,395	$	35,101	$	32,491	$	-	$	566,611

	Credit Cards		Dealer Finance
Performing	$	2,857	$	91,817
Non-performing		-		44
Total	$	2,857	$	91,861