XML 28 R18.htm IDEA: XBRL DOCUMENT v3.22.2.2
Loans (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Summary of Loans

Loans consist of the following:

 

(Dollars in thousands)

 

September 30,

2022

 

 

December 31,

2021

 

Commercial 1

 

$

135,975

 

 

$

123,933

 

Commercial real estate

 

 

208,979

 

 

 

194,754

 

Residential real estate

 

 

190,029

 

 

 

168,247

 

Construction & land development

 

 

58,388

 

 

 

46,042

 

Consumer

 

 

16,339

 

 

 

16,074

 

Total loans before deferred costs

 

 

609,710

 

 

 

549,050

 

Deferred loan costs, net

 

 

261

 

 

 

104

 

Total Loans

 

$

609,971

 

 

$

549,154

 

1 Includes $392 thousand and $4.6 million of Paycheck Protection Program loans on September 30, 2022, and December 31, 2021, respectively.
Summary of Allowance for Loan Losses

NOTE 3 – LOANS (CONTINUED)

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 September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,213

 

 

$

2,422

 

 

$

1,177

 

 

$

1,607

 

 

$

395

 

 

$

454

 

 

$

7,268

 

(Recovery of) provision for loan losses

 

 

45

 

 

 

(298

)

 

 

111

 

 

 

(331

)

 

 

(137

)

 

 

360

 

 

 

(250

)

Charge-offs

 

 

(13

)

 

 

(12

)

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

 

 

 

 

(29

)

Recoveries

 

 

4

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

14

 

 

 

 

 

 

 

19

 

Net (charge-offs) recoveries

 

 

(9

)

 

 

(12

)

 

 

1

 

 

 

—

 

 

 

10

 

 

 

 

 

 

 

(10

)

Ending balance

 

$

1,249

 

 

$

2,112

 

 

$

1,289

 

 

$

1,276

 

 

$

268

 

 

$

814

 

 

$

7,008

 

Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,240

 

 

$

2,838

 

 

$

992

 

 

$

1,380

 

 

$

421

 

 

$

747

 

 

$

7,618

 

(Recovery of) provision for loan losses

 

 

30

 

 

 

(715

)

 

 

295

 

 

 

(416

)

 

 

(156

)

 

 

67

 

 

 

(895

)

Charge-offs

 

 

(31

)

 

 

(12

)

 

 

—

 

 

 

—

 

 

 

(28

)

 

 

 

 

 

 

(71

)

Recoveries

 

 

10

 

 

 

1

 

 

 

2

 

 

 

312

 

 

 

31

 

 

 

 

 

 

 

356

 

Net (charge-offs) recoveries

 

 

(21

)

 

 

(11

)

 

 

2

 

 

 

312

 

 

 

3

 

 

 

 

 

 

 

285

 

Ending balance

 

$

1,249

 

 

$

2,112

 

 

$

1,289

 

 

$

1,276

 

 

$

268

 

 

$

814

 

 

$

7,008

 

Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,335

 

 

$

3,404

 

 

$

1,060

 

 

$

767

 

 

$

278

 

 

$

1,031

 

 

$

7,875

 

(Recovery of) provision for loan losses

 

 

9

 

 

 

(280

)

 

 

(32

)

 

 

508

 

 

 

(9

)

 

 

(406

)

 

 

(210

)

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(39

)

 

 

 

 

 

 

(39

)

Recoveries

 

 

5

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

12

 

 

 

 

 

 

 

19

 

Net (charge-offs) recoveries

 

 

5

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

(27

)

 

 

 

 

 

 

(20

)

Ending balance

 

$

1,349

 

 

$

3,124

 

 

$

1,030

 

 

$

1,275

 

 

$

242

 

 

$

625

 

 

$

7,645

 

Nine Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,739

 

 

$

3,469

 

 

$

1,156

 

 

$

756

 

 

$

352

 

 

$

802

 

 

$

8,274

 

(Recovery of) provision for loan losses

 

 

(393

)

 

 

(346

)

 

 

(130

)

 

 

519

 

 

 

(128

)

 

 

(177

)

 

 

(655

)

Charge-offs

 

 

(25

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(39

)

 

 

 

 

 

 

(64

)

Recoveries

 

 

28

 

 

 

1

 

 

 

4

 

 

 

—

 

 

 

57

 

 

 

 

 

 

 

90

 

Net (charge-offs) recoveries

 

 

3

 

 

 

1

 

 

 

4

 

 

 

—

 

 

 

18

 

 

 

 

 

 

 

26

 

Ending balance

 

$

1,349

 

 

$

3,124

 

 

$

1,030

 

 

$

1,275

 

 

$

242

 

 

$

625

 

 

$

7,645

 
Allowances for Loan Losses and Ending Balances by Portfolio Class and Based on Impairment Method

NOTE 3 – LOANS (CONTINUED)

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 September 30, 2022 and December 31, 2021:

 

(Dollars in thousands)

 

Commercial

 

 

Commercial

Real Estate

 

 

Residential

Real Estate

 

 

Construction

 

 

Consumer

 

 

Unallocated

 

 

Total

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

196

 

 

$

—

 

 

$

1

 

 

$

—

 

 

$

4

 

 

 

 

 

 

$

201

 

Collectively evaluated for impairment

 

 

1,053

 

 

 

2,112

 

 

 

1,288

 

 

 

1,276

 

 

 

264

 

 

 

814

 

 

 

6,807

 

Total ending allowance balance

 

$

1,249

 

 

$

2,112

 

 

$

1,289

 

 

$

1,276

 

 

$

268

 

 

$

814

 

 

$

7,008

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for

   impairment

 

$

322

 

 

$

157

 

 

$

688

 

 

$

—

 

 

$

126

 

 

 

 

 

 

$

1,293

 

Loans collectively evaluated for

   impairment

 

 

135,653

 

 

 

208,822

 

 

 

189,341

 

 

 

58,388

 

 

 

16,213

 

 

 

 

 

 

 

608,417

 

Total ending loans balance

 

$

135,975

 

 

$

208,979

 

 

$

190,029

 

 

$

58,388

 

 

$

16,339

 

 

 

 

 

 

$

609,710

 

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 September 30, 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

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

344

 

 

$

126

 

 

$

196

 

 

$

322

 

 

$

196

 

Commercial real estate

 

 

311

 

 

 

135

 

 

 

22

 

 

 

157

 

 

 

—

 

Residential real estate

 

 

743

 

 

 

375

 

 

 

318

 

 

 

693

 

 

 

1

 

Construction & land development

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

131

 

 

 

7

 

 

 

123

 

 

 

130

 

 

 

4

 

Total impaired loans

 

$

1,529

 

 

$

643

 

 

$

659

 

 

$

1,302

 

 

$

201

 

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

NOTE 3 – LOANS (CONTINUED)

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated.

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Average recorded investment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

255

 

 

$

1,237

 

 

$

258

 

 

$

1,745

 

Commercial real estate

 

 

173

 

 

 

2,199

 

 

 

198

 

 

 

2,557

 

Residential real estate

 

 

715

 

 

 

822

 

 

 

781

 

 

 

822

 

Construction & land development

 

 

—

 

 

 

—

 

 

 

164

 

 

 

—

 

Consumer

 

 

131

 

 

 

128

 

 

 

132

 

 

 

134

 

Average recorded investment in impaired loans

 

$

1,274

 

 

$

4,386

 

 

$

1,533

 

 

$

5,258

 

Interest income recognized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

—

 

 

$

3

 

 

$

2

 

 

$

22

 

Commercial real estate

 

 

2

 

 

 

20

 

 

 

6

 

 

 

71

 

Residential real estate

 

 

7

 

 

 

7

 

 

 

23

 

 

 

23

 

Construction & land development

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

2

 

 

 

2

 

 

 

6

 

 

 

6

 

Interest income recognized on a cash basis on impaired loans

 

$

11

 

 

$

32

 

 

$

37

 

 

$

122

 
Schedule of Aging of Past Due and Nonaccrual Loans

The following table presents the aging of past due loans and nonaccrual loans as of September 30, 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

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

135,762

 

 

$

2

 

 

$

15

 

 

$

—

 

 

$

196

 

 

$

213

 

 

$

135,975

 

Commercial real estate

 

 

208,629

 

 

 

132

 

 

 

82

 

 

 

—

 

 

 

136

 

 

 

350

 

 

 

208,979

 

Residential real estate

 

 

189,281

 

 

 

333

 

 

 

122

 

 

 

—

 

 

 

293

 

 

 

748

 

 

 

190,029

 

Construction & land development

 

 

58,313

 

 

 

—

 

 

 

75

 

 

 

—

 

 

 

—

 

 

 

75

 

 

 

58,388

 

Consumer

 

 

16,117

 

 

 

161

 

 

 

—

 

 

 

—

 

 

 

61

 

 

 

222

 

 

 

16,339

 

Total Loans

 

$

608,102

 

 

$

628

 

 

$

294

 

 

$

—

 

 

$

686

 

 

$

1,608

 

 

$

609,710

 

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 and nine months ended September 30, 2022.  Loan modifications considered TDRs completed during the three and nine months ended September 30, 2021, were as follows:  

 

(Dollars in thousands)

 

Number of

loans

restructured

 

Pre-

Modification

Recorded

Investment

 

 

Post-

Modification

Recorded

Investment

 

Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

Commercial

 

1

 

$

66

 

 

$

66

 

 

 

1

 

$

66

 

 

$

66

 

Nine Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

Commercial

 

4

 

$

960

 

 

$

960

 

Commercial real estate

 

2

 

 

1,686

 

 

 

1,686

 

Residential real estate

 

1

 

 

88

 

 

 

88

 

 

 

7

 

$

2,734

 

 

$

2,734

 

 
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 September 30, 2022 and December 31, 2021:

(Dollars in thousands)

 

Pass

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

Not

Rated

 

 

Total

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

128,121

 

 

$

1,481

 

 

$

4,306

 

 

$

—

 

 

$

2,067

 

 

$

135,975

 

Commercial real estate

 

 

195,891

 

 

 

1,344

 

 

 

8,452

 

 

 

—

 

 

 

3,292

 

 

 

208,979

 

Construction & land development

 

 

46,770

 

 

 

6,229

 

 

 

—

 

 

 

—

 

 

 

5,389

 

 

 

58,388

 

Total

 

$

370,782

 

 

$

9,054

 

 

$

12,758

 

 

$

—

 

 

$

10,748

 

 

$

403,342

 

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