Loans (Tables)

12 Months Ended

Dec. 31, 2019

Loans consisted of the following at December 31:

(Dollars in thousands)		2019			2018
Commercial	$		137,114	$		146,875
Commercial real estate			196,748			183,605
Residential real estate			174,259			167,296
Construction & land development			23,960			31,227
Consumer			19,052			19,402
Total loans before deferred costs			551,133			548,405
Deferred loan costs			500			569
Total loans	$		551,633	$		548,974

Summary of Allowance for Loan Losses

(Dollars in thousands)		Commercial				Commercial Real Estate				Residential Real Estate				Construction & Land Development				Consumer				Unallocated				Total
December 31, 2019
Beginning balance	$		2,178		$		1,791		$		1,245		$		258		$		306		$		129		$		5,907
Provision for loan losses			102				361				(100	)			(55	)			341				491				1,140
Charge-offs			(47	)			—				—				—				(211	)							(258	)
Recoveries			175				1				7				—				45								228
Net (charge-offs) recoveries			128				1				7				—				(166	)			—				(30	)
Ending balance	$		2,408		$		2,153		$		1,152		$		203		$		481		$		620		$		7,017

December 31, 2018
Beginning balance	$		1,813		$		1,735		$		1,273		$		237		$		175		$		371		$		5,604
Provision for loan losses			1,127				158				6				21				246				(242	)			1,316
Charge-offs			(823	)			(103	)			(37	)			—				(119	)							(1,082	)
Recoveries			61				1				3				—				4								69
Net (charge-offs) recoveries			(762	)			(102	)			(34	)			—				(115	)			—				(1,013	)
Ending balance	$		2,178		$		1,791		$		1,245		$		258		$		306		$		129		$		5,907

December 31, 2017
Beginning balance	$		2,207		$		1,264		$		1,189		$		178		$		141		$		312		$		5,291
Provision for loan losses			429				471				76				59				51				59				1,145
Charge-offs			(1,184	)			—				—				—				(20	)							(1,204	)
Recoveries			361				—				8				—				3								372
Net (charge-offs) recoveries			(823	)			—				8				—				(17	)			—				(832	)
Ending balance	$		1,813		$		1,735		$		1,273		$		237		$		175		$		371		$		5,604

Allowances for Loan Losses and Ending Balances by Portfolio Segment and Impairment Method

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and impairment method as of December 31:

(Dollars in thousands)		Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
2019
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$		16	$		17	$		1	$		—	$		—	$		—	$		34
Collectively evaluated for impairment			2,392			2,136			1,151			203			481			620			6,983
Total ending allowance balance	$		2,408	$		2,153	$		1,152	$		203	$		481	$		620	$		7,017

Loans:
Loans individually evaluated for impairment	$		2,555	$		2,637	$		853	$		—	$		14				$		6,059
Loans collectively evaluated for impairment			134,559			194,111			173,406			23,960			19,038						545,074
Total ending loans balance	$		137,114	$		196,748	$		174,259	$		23,960	$		19,052				$		551,133

2018
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment	$		36	$		64	$		1	$		—	$		—	$		—	$		101
Collectively evaluated for impairment			2,142			1,727			1,244			258			306			129			5,806
Total ending allowance balance	$		2,178	$		1,791	$		1,245	$		258	$		306	$		129	$		5,907

Loans:
Loans individually evaluated for impairment	$		419	$		2,403	$		1,030	$		—	$		—				$		3,852
Loans collectively evaluated for impairment			146,456			181,202			166,266			31,227			19,402						544,553
Total ending loans balance	$		146,875	$		183,605	$		167,296	$		31,227	$		19,402				$		548,405

Schedule of Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of December 31:

(Dollars in thousands)		Unpaid Principal Balance			Recorded Investment With No Allowance			Recorded Investment With Allowance			Total Recorded Investment ¹			Related Allowance			Average Recorded Investment			Interest Income Recognized
2019
Commercial	$		2,982	$		2,541	$		16	$		2,557	$		16	$		2,054	$		68
Commercial real estate			2,952			2,471			176			2,647			17			2,517			11
Residential real estate			1,024			457			396			853			1			1,093			54
Consumer			14			14			—			14			—			12			1
Total impaired loans	$		6,972	$		5,483	$		588	$		6,071	$		34	$		5,676	$		134

2018
Commercial	$		815	$		383	$		36	$		419	$		36	$		1,511	$		37
Commercial real estate			2,616			1,976			433			2,409			64			3,531			19
Residential real estate			1,190			763			269			1,032			1			1,327			57
Total impaired loans	$		4,621	$		3,122	$		738	$		3,860	$		101	$		6,369	$		113

2017
Commercial	$		3,352	$		1,329	$		399	$		1,728	$		74	$		2,884	$		52
Commercial real estate			4,826			3,117			1,566			4,683			151			3,213			14
Residential real estate			1,654			1,119			352			1,471			19			1,476			57
Total impaired loans	$		9,832	$		5,565	$		2,317	$		7,882	$		244	$		7,573	$		123

¹ Includes principal, accrued interest, unearned fees, and origination costs.

Schedule of Aging of Accruing Past Due and Nonaccrual Loans

The following table presents the aging of accruing past due and nonaccrual loans by class of loans as of December 31:

(Dollars in thousands)		Current			30-59 Days Past Due			60-89 Days Past Due			90 Days + Past Due			Nonaccrual			Total Past Due and Nonaccrual			Total Loans
2019
Commercial	$		135,707	$		15	$		—	$		67	$		1,325	$		1,407	$		137,114
Commercial real estate			194,157			186			—			—			2,405			2,591			196,748
Residential real estate			173,023			264			277			174			521			1,236			174,259
Construction & land development			23,960			—			—			—			—			—			23,960
Consumer			18,640			365			—			—			47			412			19,052
Total loans	$		545,487	$		830	$		277	$		241	$		4,298	$		5,646	$		551,133

2018
Commercial	$		146,431	$		253	$		34	$		—	$		157	$		444	$		146,875
Commercial real estate			181,388			86			—			—			2,131			2,217			183,605
Residential real estate			165,837			265			213			174			807			1,459			167,296
Construction & land development			31,169			58			—			—			—			58			31,227
Consumer			18,965			291			86			—			60			437			19,402
Total loans	$		543,790	$		953	$		333	$		174	$		3,155	$		4,615	$		548,405

Summary of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the year ended December 31 were as follows:

(Dollars in thousands)	Number Of Loans Restructured			Pre-Modification Recorded Investment			Post-Modification Recorded Investment
2019
Consumer		1	$		17	$		17
Total restructured loans		1	$		17	$		17

2018
Commercial		1	$		200	$		200
Residential real estate		2			27			27
Total restructured loans		3	$		227	$		227

2017
Commercial		2	$		150	$		150
Commercial real estate		4			288			288
Residential real estate		2			52			52
Total restructured loans		8	$		490	$		490

Summary of Loans by Credit Quality Indicator

Based on the most recent analysis performed, the risk category of loans by class was as follows at December 31:

(Dollars in thousands)		Pass			Special Mention			Substandard			Doubtful			Not Rated			Total
2019
Commercial	$		110,731	$		15,040	$		10,295	$		—	$		1,048	$		137,114
Commercial real estate			174,045			11,546			9,994			—			1,163			196,748
Residential real estate			183			—			237			—			173,839			174,259
Construction & land development			19,423			104			—			—			4,433			23,960
Consumer			—			—			73			—			18,979			19,052
Total	$		304,382	$		26,690	$		20,599	$		—	$		199,462	$		551,133

2018
Commercial	$		125,840	$		5,383	$		14,775	$		—	$		877	$		146,875
Commercial real estate			163,261			5,582			13,578			—			1,184			183,605
Residential real estate			194			—			637			—			166,465			167,296
Construction & land development			27,540			—			—			—			3,687			31,227
Consumer			—			—			60			—			19,342			19,402
Total	$		316,835	$		10,965	$		29,050	$		—	$		191,555	$		548,405

Schedule of Loans Not Rated by Class of Loans

Nonperforming loans include loans past due 90 days and greater and loans on nonaccrual of interest status that have not been risk rated. The following table presents loans that are not rated, by class of loans as of December 31:

(Dollars in thousands)		Performing			Nonperforming			Total
2019
Commercial	$		1,048	$		—	$		1,048
Commercial real estate			1,163			—			1,163
Residential real estate			173,407			432			173,839
Construction & land development			4,433			—			4,433
Consumer			18,979			—			18,979
Total	$		199,030	$		432	$		199,462

2018
Commercial	$		877	$		—	$		877
Commercial real estate			1,184			—			1,184
Residential real estate			166,122			343			166,465
Construction & land development			3,687			—			3,687
Consumer			19,342			—			19,342
Total	$		191,212	$		343	$		191,555