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Loans Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable, net, at December 31, 2021 and 2020 are summarized below.


	December 31,
	2021				2020
	Balance		% of Total Gross Loans		Balance		% of Total Gross Loans
Residential Real Estate Loans	$	55,977,999	10.9	%	$	66,709,742	13.5	%
Consumer Loans	59,256,394		11.6	%	55,335,425		11.2	%
Commercial Business Loans	29,287,265		5.7	%	19,704,862		4.0	%
Commercial Real Estate Loans	353,356,712		69.1	%	299,299,647		60.6	%
Paycheck Protection Program ("PPP") Loans	9,751,812		1.9	%	47,105,618		9.5	%
Total Loans Held For Investment	507,630,182		99.2	%	488,155,294		98.8	%
Loans Held For Sale	4,038,414		0.8	%	5,693,400		1.2	%
Total Loans Receivable, Gross	$	511,668,596	100.0	%	$	493,848,694	100.0	%
Less:
Allowance For Loan Losses	11,087,164				12,842,896
Deferred Loan Fees	1,084,623				1,838,426
	12,171,787				14,681,322
Total Loans Receivable, Net	$	499,496,809			$	479,167,372

Financing Receivable Credit Quality Indicators

The following tables summarize the loan grades used by the Bank to measure the credit quality of gross loans receivable, excluding those held for sale, by loan segment at December 31, 2021 and 2020.


December 31, 2021	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	42,220,385	$	11,501,275	$	153,505	$	2,102,834	$	55,977,999
Consumer	46,895,253		10,775,951		832,463		752,727		59,256,394
Commercial Business	24,191,552		4,720,925		54,380		320,408		29,287,265
Commercial Real Estate	273,409,226		62,168,249		14,021,326		3,757,911		353,356,712
PPP	9,751,812		—		—		—		9,751,812
Total	$	396,468,228	$	89,166,400	$	15,061,674	$	6,933,880	$	507,630,182


December 31, 2020	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	53,240,147	$	9,675,300	$	799,446	$	2,994,849	$	66,709,742
Consumer	42,926,887		10,525,814		891,107		991,617		55,335,425
Commercial Business	15,315,677		3,851,517		309,100		228,568		19,704,862
Commercial Real Estate	221,696,863		56,642,660		16,349,302		4,610,822		299,299,647
PPP	47,105,618		—		—		—		47,105,618
Total	$	380,285,192	$	80,695,291	$	18,348,955	$	8,825,856	$	488,155,294

Past Due Financing Receivables

The following tables present an age analysis of past due balances by category at December 31, 2021 and 2020.


	December 31, 2021
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable
Residential Real Estate	$	—	$	241,680	$	205,713	$	447,393	$	55,530,606	$	55,977,999
Consumer	273,764		65,788		53,178		392,730		58,863,664		59,256,394
Commercial Business	79,381		133,610		—		212,991		29,074,274		29,287,265
Commercial Real Estate	367,344		354,412		372,406		1,094,162		352,262,550		353,356,712
PPP	—		—		—		—		9,751,812		9,751,812
Total	$	720,489	$	795,490	$	631,297	$	2,147,276	$	505,482,906	$	507,630,182


	December 31, 2020
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable
Residential Real Estate	$	—	$	152,634	$	160,152	$	312,786	$	66,396,956	$	66,709,742
Consumer	292,498		30,610		91,870		414,978		54,920,447		55,335,425
Commercial Business	49,554		—		7,152		56,706		19,648,156		19,704,862
Commercial Real Estate	735,456		346,850		550,409		1,632,715		297,666,932		299,299,647
PPP	—		—		—		—		47,105,618		47,105,618
Total	$	1,077,508	$	530,094	$	809,583	$	2,417,185	$	438,632,491	$	488,155,294

Schedule of Financing Receivables, Non Accrual Status

The following table shows non-accrual loans by category at December 31, 2021 compared to 2020.


	December 31, 2021				December 31, 2020				Increase (Decrease)
	Amount		Percent (1)		Amount		Percent (1)		$		%
Non-accrual Loans:
Residential Real Estate	$	1,332,106	0.3	%	$	1,682,240	0.4	%	$	(350,134)	(20.8)	%
Consumer	150,480		—		402,878		0.1		(252,398)		(62.6)
Commercial Business	64,479		—		100,408		—		(35,929)		(35.8)
Commercial Real Estate	1,136,322		0.2		939,946		0.2		196,376		20.9
Total Non-accrual Loans	$	2,683,387	0.5	%	$	3,125,472	0.7	%	$	(442,085)	(14.1)	%

(1) PERCENT OF GROSS LOANS RECEIVABLE HELD FOR INVESTMENT, NET OF DEFERRED FEES

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent

The tables below show the allowance for loan losses by loan category for the years ended December 31, 2021, 2020 and 2019.


	For the Year Ended December 31, 2021
	Residential Real Estate		Consumer		Commercial Business		Commercial Real Estate		Total
Beginning Balance	$	1,528,948	$	1,298,655	$	1,165,033	$	8,850,260	$	12,842,896
Provision	(597,159)		(201,384)		106,569		(1,712,143)		(2,404,117)
Charge-Offs	—		(129,923)		(6,699)		—		(136,622)
Recoveries	41,496		107,003		2,711		633,797		785,007
Ending Balance	$	973,285	$	1,074,351	$	1,267,614	$	7,771,914	$	11,087,164


	For the Year Ended December 31, 2020
	Residential Real Estate		Consumer		Commercial Business		Commercial Real Estate		Total
Beginning Balance	$	1,390,594	$	1,210,849	$	544,764	$	6,079,367	$	9,225,574
Provision	136,063		251,948		655,317		2,556,672		3,600,000
Charge-Offs	(9)		(226,760)		(35,048)		(19,453)		(281,270)
Recoveries	2,300		62,618		—		233,674		298,592
Ending Balance	$	1,528,948	$	1,298,655	$	1,165,033	$	8,850,260	$	12,842,896


	For the Year Ended December 31, 2019
	Residential Real Estate		Consumer		Commercial Business		Commercial Real Estate		Total
Beginning Balance	$	1,191,443	$	1,203,593	$	923,600	$	5,853,081	$	9,171,717
Provision	227,624		324,394		(392,817)		215,799		375,000
Charge-Offs	(34,599)		(432,003)		(1,132)		(517,583)		(985,317)
Recoveries	6,126		114,865		15,113		528,070		664,174
Ending Balance	$	1,390,594	$	1,210,849	$	544,764	$	6,079,367	$	9,225,574

Allowance for Credit Losses on Financing Receivables

The following tables summarize the impaired loans evaluated individually and collectively for impairment within the allowance for loan losses and loans receivable balances at December 31, 2021 and 2020.


	Allowance For Loan Losses						Loans Receivable
December 31, 2021	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total		Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	—	$	973,285	$	973,285	$	1,128,452	$	54,849,547	$	55,977,999
Consumer	—		1,074,351		1,074,351		97,302		59,159,092		59,256,394
Commercial Business	—		1,267,614		1,267,614		31,446		29,255,819		29,287,265
Commercial Real Estate	—		7,771,914		7,771,914		1,066,107		352,290,605		353,356,712
PPP	—		—		—		—		9,751,812		9,751,812
Total	$	—	$	11,087,164	$	11,087,164	$	2,323,307	$	505,306,875	$	507,630,182

December 31, 2020
Residential Real Estate	$	—	$	1,528,948	$	1,528,948	$	1,284,303	$	65,425,439	$	66,709,742
Consumer	—		1,298,655		1,298,655		161,869		55,173,556		55,335,425
Commercial Business	—		1,165,033		1,165,033		53,047		19,651,815		19,704,862
Commercial Real Estate	—		8,850,260		8,850,260		720,111		298,579,536		299,299,647
PPP	—		—		—		—		47,105,618		47,105,618
Total	$	—	$	12,842,896	$	12,842,896	$	2,219,330	$	485,935,964	$	488,155,294

Impaired Financing Receivables

The following tables present information related to impaired loans by loan category as of and for the years ended December 31, 2021, 2020 and 2019.


	December 31, 2021
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,128,452	$	1,128,452	$	—	$	1,275,540	$	4,139
Consumer	97,302		105,602		—		142,602		—
Commercial Business	31,446		926,446		—		46,093		—
Commercial Real Estate	1,066,107		1,211,527		—		1,108,041		18,060










Total	$	2,323,307	$	3,372,027	$	—	$	2,572,276	$	22,199


	December 31, 2020
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,284,303	$	1,284,303	$	—	$	1,877,590	$	24,597
Consumer	161,869		170,169		—		210,722		1,591
Commercial Business	53,047		948,046		—		58,597		—
Commercial Real Estate	720,111		865,531		—		1,717,842		56,737










Total	$	2,219,330	$	3,268,049	$	—	$	3,864,751	$	82,925


	December 31, 2019
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,086,433	$	1,086,433	$	—	$	1,322,609	$	—
Consumer	184,402		192,702		—		1,106,795		—
Commercial Business	64,406		959,406		—		71,422		—
Commercial Real Estate	1,894,642		2,066,862		—		3,893,786		54,372










Total	$	3,229,883	$	4,305,403	$	—	$	6,394,612	$	54,372

Troubled Debt Restructurings on Financing Receivables

In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. A troubled debt restructuring ("TDR") is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that it would not otherwise consider (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. The Bank grants such concessions to reassess the borrower’s financial status and develop a plan for repayment.

At the date of modification, TDRs are initially classified as nonaccrual TDRs. They are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower's financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months).