Loans (Tables)
|
3 Months Ended |
Mar. 31, 2020 |
Receivables [Abstract] |
|
Summary of Loans |
Loans consist of the following:
(Dollars in thousands) |
|
March 31,
2020 |
|
|
December 31,
2019 |
|
Commercial |
|
$ |
139,964 |
|
|
$ |
137,114 |
|
Commercial real estate |
|
|
192,387 |
|
|
|
196,748 |
|
Residential real estate |
|
|
177,404 |
|
|
|
174,259 |
|
Construction & land development |
|
|
26,516 |
|
|
|
23,960 |
|
Consumer |
|
|
18,598 |
|
|
|
19,052 |
|
Total loans before deferred costs |
|
|
554,869 |
|
|
|
551,133 |
|
Deferred loan costs |
|
|
451 |
|
|
|
500 |
|
Total Loans |
|
$ |
555,320 |
|
|
$ |
551,633 |
|
|
Summary of Allowance for Loan Losses |
Summary of Allowance for Loan Losses
(Dollars in thousands) |
|
Commercial |
|
|
Commercial
Real Estate |
|
|
Residential
Real Estate |
|
|
Construction
& Land
Development |
|
|
Consumer |
|
|
Unallocated |
|
|
Total |
|
Three months ended March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
2,408 |
|
|
$ |
2,153 |
|
|
$ |
1,152 |
|
|
$ |
203 |
|
|
$ |
481 |
|
|
$ |
620 |
|
|
$ |
7,017 |
|
Provision for loan losses |
|
|
212 |
|
|
|
147 |
|
|
|
209 |
|
|
|
52 |
|
|
|
87 |
|
|
|
(529 |
) |
|
|
178 |
|
Charge-offs |
|
|
(15 |
) |
|
|
— |
|
|
|
(15 |
) |
|
|
— |
|
|
|
(57 |
) |
|
|
|
|
|
|
(87 |
) |
Recoveries |
|
|
4 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
7 |
|
|
|
|
|
|
|
12 |
|
Net charge-offs |
|
|
(11 |
) |
|
|
— |
|
|
|
(14 |
) |
|
|
— |
|
|
|
(50 |
) |
|
|
|
|
|
|
(75 |
) |
Ending balance |
|
$ |
2,609 |
|
|
$ |
2,300 |
|
|
$ |
1,347 |
|
|
$ |
255 |
|
|
$ |
518 |
|
|
$ |
91 |
|
|
$ |
7,120 |
|
Three months ended March 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
2,178 |
|
|
$ |
1,791 |
|
|
$ |
1,245 |
|
|
$ |
258 |
|
|
$ |
306 |
|
|
$ |
129 |
|
|
$ |
5,907 |
|
Provision for loan losses |
|
|
(339 |
) |
|
|
17 |
|
|
|
(24 |
) |
|
|
(88 |
) |
|
|
83 |
|
|
|
636 |
|
|
|
285 |
|
Charge-offs |
|
|
(5 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(65 |
) |
|
|
|
|
|
|
(70 |
) |
Recoveries |
|
|
163 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
|
|
|
|
165 |
|
Net (charge-offs) recoveries |
|
|
158 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
(64 |
) |
|
|
|
|
|
|
95 |
|
Ending balance |
|
$ |
1,997 |
|
|
$ |
1,808 |
|
|
$ |
1,222 |
|
|
$ |
170 |
|
|
$ |
325 |
|
|
$ |
765 |
|
|
$ |
6,287 |
|
|
Allowances for Loan Losses and Ending Balances by Portfolio Class and Based on Impairment Method |
The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio class, based on the impairment method as of March 31, 2020 and December 31, 2019:
(Dollars in thousands) |
|
Commercial |
|
|
Commercial
Real Estate |
|
|
Residential
Real Estate |
|
|
Construction |
|
|
Consumer |
|
|
Unallocated |
|
|
Total |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment |
|
$ |
10 |
|
|
$ |
18 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
29 |
|
Collectively evaluated for impairment |
|
|
2,599 |
|
|
|
2,282 |
|
|
|
1,346 |
|
|
|
255 |
|
|
|
518 |
|
|
|
91 |
|
|
|
7,091 |
|
Total ending allowance balance |
|
$ |
2,609 |
|
|
$ |
2,300 |
|
|
$ |
1,347 |
|
|
$ |
255 |
|
|
$ |
518 |
|
|
$ |
91 |
|
|
$ |
7,120 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for
impairment |
|
$ |
2,497 |
|
|
$ |
2,577 |
|
|
$ |
834 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
$ |
5,908 |
|
Loans collectively evaluated for
impairment |
|
|
137,467 |
|
|
|
189,810 |
|
|
|
176,570 |
|
|
|
26,516 |
|
|
|
18,598 |
|
|
|
|
|
|
|
548,961 |
|
Total ending loans balance |
|
$ |
139,964 |
|
|
$ |
192,387 |
|
|
$ |
177,404 |
|
|
$ |
26,516 |
|
|
$ |
18,598 |
|
|
|
|
|
|
$ |
554,869 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Schedule of Impairment by Class of Loans |
The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2020 and December 31, 2019:
(Dollars in thousands) |
|
Unpaid
Principal
Balance |
|
|
Recorded
Investment
with no
Allowance |
|
|
Recorded
Investment
with
Allowance |
|
|
Total
recorded
investment1 |
|
|
Related
Allowance |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
2,924 |
|
|
$ |
2,489 |
|
|
$ |
10 |
|
|
$ |
2,499 |
|
|
$ |
10 |
|
Commercial real estate |
|
|
2,921 |
|
|
|
2,416 |
|
|
|
170 |
|
|
|
2,586 |
|
|
|
18 |
|
Residential real estate |
|
|
1,010 |
|
|
|
577 |
|
|
|
259 |
|
|
|
836 |
|
|
|
1 |
|
Total impaired loans |
|
$ |
6,855 |
|
|
$ |
5,482 |
|
|
$ |
439 |
|
|
$ |
5,921 |
|
|
$ |
29 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
2,982 |
|
|
$ |
2,541 |
|
|
$ |
16 |
|
|
$ |
2,557 |
|
|
$ |
16 |
|
Commercial real estate |
|
|
2,952 |
|
|
|
2,471 |
|
|
|
176 |
|
|
|
2,647 |
|
|
|
17 |
|
Residential real estate |
|
|
1,024 |
|
|
|
457 |
|
|
|
396 |
|
|
|
853 |
|
|
|
1 |
|
Consumer |
|
|
14 |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
Total impaired loans |
|
$ |
6,972 |
|
|
$ |
5,483 |
|
|
$ |
588 |
|
|
$ |
6,071 |
|
|
$ |
34 |
|
1 |
includes principal, accrued interest, unearned fees, and origination costs |
|
Schedule of Average Recorded Investment in Impaired Loans and Related Interest Income Recognized |
The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated.
|
|
Three Months Ended
March 31, |
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
Average recorded investment: |
|
|
|
|
|
|
|
|
Commercial |
|
$ |
2,453 |
|
|
$ |
861 |
|
Commercial real estate |
|
|
2,556 |
|
|
|
2,289 |
|
Residential real estate |
|
|
846 |
|
|
|
1,018 |
|
Consumer |
|
|
9 |
|
|
|
3 |
|
Average recorded investment in impaired loans |
|
$ |
5,864 |
|
|
$ |
4,171 |
|
Interest income recognized: |
|
|
|
|
|
|
|
|
Commercial |
|
$ |
18 |
|
|
$ |
13 |
|
Commercial real estate |
|
|
2 |
|
|
|
3 |
|
Residential real estate |
|
|
10 |
|
|
|
12 |
|
Interest income recognized on a cash basis on impaired loans |
|
$ |
30 |
|
|
$ |
28 |
|
|
Schedule of Aging of Past Due and Nonaccrual Loans |
The following table presents the aging of past due loans and nonaccrual loans as of March 31, 2020 and December 31, 2019 by class of loans:
|
|
|
|
|
|
Accruing Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Current |
|
|
30-59
Days
Past
Due |
|
|
60-89
Days
Past
Due |
|
|
90 Days +
Past Due |
|
|
Non-
Accrual |
|
|
Total
Past
Due
and
Non-
Accrual |
|
|
Total
Loans |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
138,544 |
|
|
$ |
104 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,316 |
|
|
$ |
1,420 |
|
|
$ |
139,964 |
|
Commercial real estate |
|
|
189,953 |
|
|
|
80 |
|
|
|
— |
|
|
|
— |
|
|
|
2,354 |
|
|
|
2,434 |
|
|
|
192,387 |
|
Residential real estate |
|
|
176,176 |
|
|
|
357 |
|
|
|
207 |
|
|
|
2 |
|
|
|
662 |
|
|
|
1,228 |
|
|
|
177,404 |
|
Construction & land development |
|
|
26,516 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,516 |
|
Consumer |
|
|
18,344 |
|
|
|
198 |
|
|
|
21 |
|
|
|
— |
|
|
|
35 |
|
|
|
254 |
|
|
|
18,598 |
|
Total Loans |
|
$ |
549,533 |
|
|
$ |
739 |
|
|
$ |
228 |
|
|
$ |
2 |
|
|
$ |
4,367 |
|
|
$ |
5,336 |
|
|
$ |
554,869 |
|
December 31, 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 |
|
|
Summary of Troubled Debt Restructurings |
(Dollars in thousands) |
|
Number of
loans
restructured |
|
Pre-
Modification
Recorded
Investment |
|
|
Post-
Modification
Recorded
Investment |
|
For the Three months ended March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
1 |
|
$ |
69 |
|
|
$ |
69 |
|
Total Restructured Loans |
|
1 |
|
$ |
69 |
|
|
$ |
69 |
|
For the Three months ended March 31, 2019 |
|
|
|
|
|
|
|
|
|
|
Consumer |
|
1 |
|
$ |
17 |
|
|
$ |
17 |
|
Total Restructured Loans |
|
1 |
|
$ |
17 |
|
|
$ |
17 |
|
|
Summary of Loans by Credit Quality Indicator |
Based on the most recent analysis performed, the risk category of loans by class is as follows as of March 31, 2020 and December 31, 2019:
(Dollars in thousands) |
|
Pass |
|
|
Special
Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Not
Rated |
|
|
Total |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
112,315 |
|
|
$ |
8,402 |
|
|
$ |
18,190 |
|
|
$ |
— |
|
|
$ |
1,057 |
|
|
$ |
139,964 |
|
Commercial real estate |
|
|
170,352 |
|
|
|
7,221 |
|
|
|
13,615 |
|
|
|
— |
|
|
|
1,199 |
|
|
|
192,387 |
|
Residential real estate |
|
|
180 |
|
|
|
— |
|
|
|
243 |
|
|
|
— |
|
|
|
176,981 |
|
|
|
177,404 |
|
Construction & land development |
|
|
22,626 |
|
|
|
99 |
|
|
|
— |
|
|
|
— |
|
|
|
3,791 |
|
|
|
26,516 |
|
Consumer |
|
|
— |
|
|
|
— |
|
|
|
78 |
|
|
|
— |
|
|
|
18,520 |
|
|
|
18,598 |
|
Total |
|
$ |
305,473 |
|
|
$ |
15,722 |
|
|
$ |
32,126 |
|
|
$ |
— |
|
|
$ |
201,548 |
|
|
$ |
554,869 |
|
December 31, 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 |
|
|
Schedule of Loans Not Rated by Class of Loans |
The following table presents loans that are not rated by class of loans as of March 31, 2020 and December 31, 2019. Nonperforming loans include loans past due 90 days or more and loans on nonaccrual of interest status.
(Dollars in thousands) |
|
Performing |
|
|
Non-
Performing |
|
|
Total |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
1,057 |
|
|
$ |
— |
|
|
$ |
1,057 |
|
Commercial real estate |
|
|
1,199 |
|
|
|
— |
|
|
|
1,199 |
|
Residential real estate |
|
|
176,574 |
|
|
|
407 |
|
|
|
176,981 |
|
Construction & land development |
|
|
3,791 |
|
|
|
— |
|
|
|
3,791 |
|
Consumer |
|
|
18,520 |
|
|
|
— |
|
|
|
18,520 |
|
Total |
|
$ |
201,141 |
|
|
$ |
407 |
|
|
$ |
201,548 |
|
December 31, 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 |
|
|