Loans (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Summary of Loans

Loans consist of the following:

(Dollars in thousands)	March 31, 2022		December 31, 2021
Commercial 1	$	127,217	$	123,933
Commercial real estate		189,417		194,754
Residential real estate		172,987		168,247
Construction & land development		62,184		46,042
Consumer		15,318		16,074
Total loans before deferred costs		567,123		549,050
Deferred loan costs, net		252		104
Total Loans	$	567,375	$	549,154

¹ Includes $2.0 million and $4.6 million of Paycheck Protection Program loans on March 31, 2022, and December 31, 2021, respectively.

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, 2022
Beginning balance	$	1,240		$	2,838		$	992		$	1,380	$	421		$	747		$	7,618
(Recovery of) provision for loan losses		(65	)		(288	)		46			154		(31	)		(116	)		(300	)
Charge-offs		(10	)		—			—			—		(21	)					(31	)
Recoveries		4			—			1			—		13						18
Net (charge-offs) recoveries		(6	)		—			1			—		(8	)					(13	)
Ending balance	$	1,169		$	2,550		$	1,039		$	1,534	$	382		$	631		$	7,305
Three Months Ended March 31, 2021
Beginning balance	$	1,739		$	3,469		$	1,156		$	756	$	352		$	802		$	8,274
Provision for loan losses		(115	)		20			(23	)		44		(79	)		183			30
Charge-offs		(3	)		—			—			—		(2	)					(5	)
Recoveries		19			—			1			—		19						39
Net (charge-offs) recoveries		16			—			1			—		17						34
Ending balance	$	1,640		$	3,489		$	1,134		$	800	$	290		$	985		$	8,338

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, 2022 and December 31, 2021:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real Estate		Construction		Consumer		Unallocated		Total
March 31, 2022
Allowance for loan losses:
Individually evaluated for impairment	$	205	$	—	$	2	$	—	$	3			$	210
Collectively evaluated for impairment		964		2,550		1,037		1,534		379		631		7,095
Total ending allowance balance	$	1,169	$	2,550	$	1,039	$	1,534	$	382	$	631	$	7,305
Loans:
Loans individually evaluated for    impairment	$	336	$	254	$	840	$	329	$	133			$	1,892
Loans collectively evaluated for    impairment		126,881		189,163		172,147		61,855		15,185				565,231
Total ending loans balance	$	127,217	$	189,417	$	172,987	$	62,184	$	15,318			$	567,123
December 31, 2021
Allowance for loan losses:
Individually evaluated for impairment	$	208	$	9	$	2	$	—	$	3	$	—	$	222
Collectively evaluated for impairment		1,032		2,829		990		1,380		418		747		7,396
Total ending allowance balance	$	1,240	$	2,838	$	992	$	1,380	$	421	$	747	$	7,618
Loans:
Loans individually evaluated for    impairment	$	342	$	291	$	856	$	329	$	137			$	1,955
Loans collectively evaluated for    impairment		123,591		194,463		167,391		45,713		15,937				547,095
Total ending loans balance	$	123,933	$	194,754	$	168,247	$	46,042	$	16,074			$	549,050

Schedule of Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2022 and December 31, 2021:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total recorded investment1		Related Allowance
March 31, 2022
Commercial	$	351	$	132	$	205	$	337	$	205
Commercial real estate		396		230		24		254		—
Residential real estate		911		556		288		844		2
Construction & land development		647		330		—		330		—
Consumer		137		9		129		138		3
Total impaired loans	$	2,442	$	1,257	$	646	$	1,903	$	210
December 31, 2021
Commercial	$	354	$	134	$	208	$	342	$	208
Commercial real estate		433		233		59		292		9
Residential real estate		925		571		291		862		2
Construction & land development		646		330		—		330		—
Consumer		141		23		119		142		3
Total impaired loans	$	2,499	$	1,291	$	677	$	1,968	$	222

¹Includes 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)	2022		2021
Average recorded investment:
Commercial	$	264	$	2,025
Commercial real estate		222		2,814
Residential real estate		849		810
Construction & land development		329		325
Consumer		135		139
Average recorded investment in impaired loans	$	1,799	$	6,113
Interest income recognized:
Commercial	$	1	$	10
Commercial real estate		2		30
Residential real estate		8		8
Construction & land development		—		—
Consumer		2		2
Interest income recognized on a cash basis on impaired loans	$	13	$	50

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, 2022 and December 31, 2021 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, 2022
Commercial	$	127,011	$	—	$	—	$	1	$	205	$	206	$	127,217
Commercial real estate		189,279		—		—		—		138		138		189,417
Residential real estate		172,441		70		—		120		356		546		172,987
Construction & land development		61,855		—		—		—		329		329		62,184
Consumer		15,160		92		34		—		32		158		15,318
Total Loans	$	565,746	$	162	$	34	$	121	$	1,060	$	1,377	$	567,123
December 31, 2021
Commercial	$	123,698	$	5	$	17	$	5	$	208	$	235	$	123,933
Commercial real estate		194,615		—		—		—		139		139		194,754
Residential real estate		167,689		191		—		—		367		558		168,247
Construction & land development		45,713		—		—		—		329		329		46,042
Consumer		15,863		171		—		—		40		211		16,074
Total Loans	$	547,578	$	367	$	17	$	5	$	1,083	$	1,472	$	549,050

Summary of Troubled Debt Restructurings

There were no loan modifications considered TDRs completed during the three months ended March 31, 2022.  Loan modifications considered TDRs completed during the three months ended March 31, 2021 were as follows:  

(Dollars in thousands)	Number of loans restructured	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Three Months Ended March 31, 2021
Commercial real estate	1		1,300		1,300
Residential real estate	1		88		88
	2	$	1,388	$	1,388

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, 2022 and December 31, 2021:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
March 31, 2022
Commercial	$	117,674	$	5,272	$	1,843	$	—	$	2,428	$	127,217
Commercial real estate		172,890		3,169		12,416		—		942		189,417
Construction & land development		48,639		5,811		329		—		7,405		62,184
Total	$	339,203	$	14,252	$	14,588	$	—	$	10,775	$	378,818
December 31, 2021
Commercial	$	114,608	$	5,959	$	2,203	$	—	$	1,163	$	123,933
Commercial real estate		176,547		7,313		10,186		—		708		194,754
Construction & land development		33,205		5,439		329		—		7,069		46,042
Total	$	324,360	$	18,711	$	12,718	$	—	$	8,940	$	364,729