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