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 |
|
|