Allowance for Loan Losses |
NOTE 4. Allowance for Loan Losses
Changes in the allowance for loan losses for the years ended December 31, 2021 and 2020 were as follows:
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(in thousands) |
|
Balance, beginning |
|
$ |
7,096 |
|
|
$ |
4,973 |
|
Provision charged to operating expense |
|
|
1,483 |
|
|
|
1,457 |
|
Recoveries added to the allowance |
|
|
318 |
|
|
|
1,131 |
|
Loan losses charged to the allowance |
|
|
(110 |
) |
|
|
(465 |
) |
Balance, ending |
|
$ |
8,787 |
|
|
$ |
7,096 |
|
Nonaccrual and past due loans by class at December 31, 2021 and December 31, 2020 were as follows:
|
|
December 31, 2021 |
|
|
|
(in thousands) |
|
|
|
30 - 59
Days
Past Due |
|
|
60 - 89
Days
Past Due |
|
|
90 or More
Days Past
Due |
|
|
Total Past
Due |
|
|
Current |
|
|
Total Loans |
|
|
90 or More
Days Past Due
Still Accruing |
|
|
Nonaccrual
Loans |
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
8 |
|
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
15 |
|
|
$ |
143,363 |
|
|
$ |
143,378 |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
188,839 |
|
|
|
188,839 |
|
|
|
— |
|
|
|
124 |
|
Non-owner occupied |
|
|
146 |
|
|
|
— |
|
|
|
130 |
|
|
|
276 |
|
|
|
187,936 |
|
|
|
188,212 |
|
|
|
— |
|
|
|
1,547 |
|
Construction and Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,077 |
|
|
|
10,077 |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
|
— |
|
|
|
126 |
|
|
|
108 |
|
|
|
234 |
|
|
|
74,590 |
|
|
|
74,824 |
|
|
|
— |
|
|
|
234 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
67,275 |
|
|
|
67,281 |
|
|
|
— |
|
|
|
3 |
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Lines |
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
35,849 |
|
|
|
35,862 |
|
|
|
— |
|
|
|
29 |
|
Single family |
|
|
409 |
|
|
|
238 |
|
|
|
434 |
|
|
|
1,081 |
|
|
|
226,780 |
|
|
|
227,861 |
|
|
|
43 |
|
|
|
786 |
|
Multifamily |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,093 |
|
|
|
29,093 |
|
|
|
— |
|
|
|
— |
|
All Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,798 |
|
|
|
16,798 |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
582 |
|
|
$ |
371 |
|
|
$ |
672 |
|
|
$ |
1,625 |
|
|
$ |
980,600 |
|
|
$ |
982,225 |
|
|
$ |
43 |
|
|
$ |
2,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
|
(in thousands) |
|
|
|
30 - 59
Days
Past Due |
|
|
60 - 89
Days
Past Due |
|
|
90 or More
Days Past
Due |
|
|
Total Past
Due |
|
|
Current |
|
|
Total Loans |
|
|
90 or More
Past Due Still
Accruing |
|
|
Nonaccrual
Loans |
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
43 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
43 |
|
|
$ |
140,719 |
|
|
$ |
140,762 |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
— |
|
|
|
— |
|
|
|
157 |
|
|
|
157 |
|
|
|
165,764 |
|
|
|
165,921 |
|
|
|
— |
|
|
|
1,227 |
|
Non-owner occupied |
|
|
500 |
|
|
|
— |
|
|
|
122 |
|
|
|
622 |
|
|
|
168,118 |
|
|
|
168,740 |
|
|
|
— |
|
|
|
2,405 |
|
Construction and Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,644 |
|
|
|
10,644 |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
|
— |
|
|
|
— |
|
|
|
69 |
|
|
|
69 |
|
|
|
47,677 |
|
|
|
47,746 |
|
|
|
— |
|
|
|
69 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
21,316 |
|
|
|
21,321 |
|
|
|
— |
|
|
|
5 |
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Lines |
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
31,239 |
|
|
|
31,252 |
|
|
|
— |
|
|
|
42 |
|
Single family |
|
|
249 |
|
|
|
123 |
|
|
|
581 |
|
|
|
953 |
|
|
|
216,041 |
|
|
|
216,994 |
|
|
|
— |
|
|
|
1,006 |
|
Multifamily |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,496 |
|
|
|
21,496 |
|
|
|
— |
|
|
|
— |
|
All Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,773 |
|
|
|
10,773 |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
810 |
|
|
$ |
123 |
|
|
$ |
929 |
|
|
$ |
1,862 |
|
|
$ |
833,787 |
|
|
$ |
835,649 |
|
|
$ |
— |
|
|
$ |
4,754 |
|
Allowance for loan losses by segment as of and for the years ended December 31, 2021 and December 31, 2020 were as follows:
|
|
December 31, 2021 |
|
|
|
(in thousands) |
|
|
|
Construction
and Farmland |
|
|
Residential
Real Estate |
|
|
Commercial
Real Estate |
|
|
Commercial |
|
|
Consumer |
|
|
All Other
Loans |
|
|
Unallocated |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
1,604 |
|
|
$ |
1,929 |
|
|
$ |
1,645 |
|
|
$ |
1,374 |
|
|
$ |
198 |
|
|
$ |
346 |
|
|
$ |
— |
|
|
$ |
7,096 |
|
Charge-Offs |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
(10 |
) |
|
|
(19 |
) |
|
|
(68 |
) |
|
|
— |
|
|
|
(110 |
) |
Recoveries |
|
|
12 |
|
|
|
240 |
|
|
|
7 |
|
|
|
18 |
|
|
|
29 |
|
|
|
12 |
|
|
|
— |
|
|
|
318 |
|
Provision |
|
|
1,178 |
|
|
|
(406 |
) |
|
|
(2 |
) |
|
|
274 |
|
|
|
438 |
|
|
|
1 |
|
|
|
— |
|
|
|
1,483 |
|
Ending balance |
|
$ |
2,794 |
|
|
$ |
1,750 |
|
|
$ |
1,650 |
|
|
$ |
1,656 |
|
|
$ |
646 |
|
|
$ |
291 |
|
|
$ |
— |
|
|
$ |
8,787 |
|
Ending balance: Individually evaluated for impairment |
|
$ |
— |
|
|
$ |
39 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
39 |
|
Ending balance: collectively evaluated for impairment |
|
$ |
2,794 |
|
|
$ |
1,711 |
|
|
$ |
1,650 |
|
|
$ |
1,656 |
|
|
$ |
646 |
|
|
$ |
291 |
|
|
$ |
— |
|
|
$ |
8,748 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
$ |
84,901 |
|
|
$ |
292,816 |
|
|
$ |
377,051 |
|
|
$ |
143,378 |
|
|
$ |
67,281 |
|
|
$ |
16,798 |
|
|
$ |
— |
|
|
$ |
982,225 |
|
Ending balance individually evaluated for impairment |
|
$ |
257 |
|
|
$ |
2,778 |
|
|
$ |
2,295 |
|
|
$ |
108 |
|
|
$ |
16 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,454 |
|
Ending balance collectively evaluated for impairment |
|
$ |
84,644 |
|
|
$ |
290,038 |
|
|
$ |
374,756 |
|
|
$ |
143,270 |
|
|
$ |
67,265 |
|
|
$ |
16,798 |
|
|
$ |
— |
|
|
$ |
976,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
|
(in thousands) |
|
|
|
Construction
and Farmland |
|
|
Residential
Real Estate |
|
|
Commercial
Real Estate |
|
|
Commercial |
|
|
Consumer |
|
|
All Other
Loans |
|
|
Unallocated |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
446 |
|
|
$ |
1,601 |
|
|
$ |
1,991 |
|
|
$ |
565 |
|
|
$ |
54 |
|
|
$ |
120 |
|
|
$ |
196 |
|
|
$ |
4,973 |
|
Charge-Offs |
|
|
(119 |
) |
|
|
(20 |
) |
|
|
(155 |
) |
|
|
(49 |
) |
|
|
(83 |
) |
|
|
(39 |
) |
|
|
— |
|
|
|
(465 |
) |
Recoveries |
|
|
7 |
|
|
|
275 |
|
|
|
302 |
|
|
|
498 |
|
|
|
41 |
|
|
|
8 |
|
|
|
— |
|
|
|
1,131 |
|
Provision |
|
|
1,270 |
|
|
|
73 |
|
|
|
(493 |
) |
|
|
360 |
|
|
|
186 |
|
|
|
257 |
|
|
|
(196 |
) |
|
|
1,457 |
|
Ending balance |
|
$ |
1,604 |
|
|
$ |
1,929 |
|
|
$ |
1,645 |
|
|
$ |
1,374 |
|
|
$ |
198 |
|
|
$ |
346 |
|
|
$ |
— |
|
|
$ |
7,096 |
|
Ending balance: Individually evaluated for impairment |
|
$ |
— |
|
|
$ |
72 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
72 |
|
Ending balance: collectively evaluated for impairment |
|
$ |
1,604 |
|
|
$ |
1,857 |
|
|
$ |
1,645 |
|
|
$ |
1,374 |
|
|
$ |
198 |
|
|
$ |
346 |
|
|
$ |
— |
|
|
$ |
7,024 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
$ |
58,390 |
|
|
$ |
269,742 |
|
|
$ |
334,661 |
|
|
$ |
140,762 |
|
|
$ |
21,321 |
|
|
$ |
10,773 |
|
|
$ |
— |
|
|
$ |
835,649 |
|
Ending balance individually evaluated for impairment |
|
$ |
105 |
|
|
$ |
3,869 |
|
|
$ |
3,632 |
|
|
$ |
147 |
|
|
$ |
15 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,768 |
|
Ending balance collectively evaluated for impairment |
|
$ |
58,285 |
|
|
$ |
265,873 |
|
|
$ |
331,029 |
|
|
$ |
140,615 |
|
|
$ |
21,306 |
|
|
$ |
10,773 |
|
|
$ |
— |
|
|
$ |
827,881 |
|
Impaired loans by class at December 31, 2021 and December 31, 2020 were as follows:
|
|
As of |
|
|
|
December 31, 2021 |
|
|
|
(in thousands) |
|
|
|
Unpaid
Principal
Balance |
|
|
Recorded
Investment |
|
|
Related
Allowance |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
With no related allowance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
143 |
|
|
$ |
109 |
|
|
$ |
— |
|
|
$ |
166 |
|
|
$ |
11 |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
148 |
|
|
|
124 |
|
|
|
— |
|
|
|
142 |
|
|
|
— |
|
Non-owner occupied |
|
|
2,539 |
|
|
|
2,177 |
|
|
|
— |
|
|
|
2,186 |
|
|
|
— |
|
Construction and Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
|
271 |
|
|
|
257 |
|
|
|
— |
|
|
|
267 |
|
|
|
9 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment |
|
|
17 |
|
|
|
16 |
|
|
|
— |
|
|
|
19 |
|
|
|
1 |
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity lines |
|
|
35 |
|
|
|
29 |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
Single family |
|
|
2,088 |
|
|
|
1,974 |
|
|
|
— |
|
|
|
2,012 |
|
|
|
62 |
|
Multifamily |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
5,241 |
|
|
$ |
4,686 |
|
|
$ |
— |
|
|
$ |
4,824 |
|
|
$ |
83 |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-owner occupied |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity lines |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Single family |
|
|
811 |
|
|
|
787 |
|
|
|
39 |
|
|
|
802 |
|
|
|
30 |
|
Multifamily |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
811 |
|
|
$ |
787 |
|
|
$ |
39 |
|
|
$ |
802 |
|
|
$ |
30 |
|
Total: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
143 |
|
|
$ |
109 |
|
|
$ |
— |
|
|
$ |
166 |
|
|
$ |
11 |
|
Commercial Real Estate |
|
|
2,687 |
|
|
|
2,301 |
|
|
|
— |
|
|
|
2,328 |
|
|
|
— |
|
Construction and Farmland |
|
|
271 |
|
|
|
257 |
|
|
|
— |
|
|
|
267 |
|
|
|
9 |
|
Consumer |
|
|
17 |
|
|
|
16 |
|
|
|
— |
|
|
|
19 |
|
|
|
1 |
|
Residential |
|
|
2,934 |
|
|
|
2,790 |
|
|
|
39 |
|
|
|
2,846 |
|
|
|
92 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
6,052 |
|
|
$ |
5,473 |
|
|
$ |
39 |
|
|
$ |
5,626 |
|
|
$ |
113 |
|
(1) |
Recorded investment is defined as the summation of the outstanding principal balance, accrued interest, and any partial charge-offs. |
|
|
As of |
|
|
|
December 31, 2020 |
|
|
|
(in thousands) |
|
|
|
Unpaid
Principal
Balance |
|
|
Recorded
Investment |
|
|
Related
Allowance |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
With no related allowance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
246 |
|
|
$ |
147 |
|
|
$ |
— |
|
|
$ |
186 |
|
|
$ |
16 |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
1,282 |
|
|
|
1,227 |
|
|
|
— |
|
|
|
1,258 |
|
|
|
18 |
|
Non-owner occupied |
|
|
2,682 |
|
|
|
2,405 |
|
|
|
— |
|
|
|
2,444 |
|
|
|
34 |
|
Construction and Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
|
233 |
|
|
|
105 |
|
|
|
— |
|
|
|
109 |
|
|
|
3 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment |
|
|
16 |
|
|
|
15 |
|
|
|
— |
|
|
|
22 |
|
|
|
1 |
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity lines |
|
|
272 |
|
|
|
42 |
|
|
|
— |
|
|
|
44 |
|
|
|
— |
|
Single family |
|
|
2,655 |
|
|
|
2,413 |
|
|
|
— |
|
|
|
2,514 |
|
|
|
76 |
|
Multifamily |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
7,386 |
|
|
$ |
6,354 |
|
|
$ |
— |
|
|
$ |
6,577 |
|
|
$ |
148 |
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-owner occupied |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity lines |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Single family |
|
|
1,449 |
|
|
|
1,431 |
|
|
|
72 |
|
|
|
1,448 |
|
|
|
38 |
|
Multifamily |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
1,449 |
|
|
$ |
1,431 |
|
|
$ |
72 |
|
|
$ |
1,448 |
|
|
$ |
38 |
|
Total: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
246 |
|
|
$ |
147 |
|
|
$ |
— |
|
|
$ |
186 |
|
|
$ |
16 |
|
Commercial Real Estate |
|
|
3,964 |
|
|
|
3,632 |
|
|
|
— |
|
|
|
3,702 |
|
|
|
52 |
|
Construction and Farmland |
|
|
233 |
|
|
|
105 |
|
|
|
— |
|
|
|
109 |
|
|
|
3 |
|
Consumer |
|
|
16 |
|
|
|
15 |
|
|
|
— |
|
|
|
22 |
|
|
|
1 |
|
Residential |
|
|
4,376 |
|
|
|
3,886 |
|
|
|
72 |
|
|
|
4,006 |
|
|
|
114 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
8,835 |
|
|
$ |
7,785 |
|
|
$ |
72 |
|
|
$ |
8,025 |
|
|
$ |
186 |
|
(1) |
Recorded investment is defined as the summation of the outstanding principal balance, accrued interest, and any partial charge-offs. |
When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is in nonaccrual status, all payments are applied to principal under the cost-recovery method. For financial statement purposes, the recorded investment in nonaccrual loans is the actual principal balance reduced by payments that would otherwise have been applied to interest. When reporting information on these loans to the applicable customers, the unpaid principal balance is reported as if payments were applied to principal and interest under the original terms of the loan agreements. Therefore, the unpaid principal balance reported to the customer would be higher than the recorded investment in the loan for financial statement purposes. When the ultimate collectability of the total principal of the impaired loan is not in doubt and the loan is in nonaccrual status, contractual interest is credited to interest income when received under the cash-basis method.
The Company uses a rating system for evaluating the risks associated with non-consumer loans. Consumer loans are not evaluated for risk unless the characteristics of the loan fall within classified categories. Descriptions of these ratings are as follows:
|
|
|
Pass |
|
Pass loans exhibit acceptable history of profits, cash flow ability and liquidity. Sufficient cash flow exists to service the loan. All obligations have been paid by the borrower in an as agreed manner. |
|
|
Special mention |
|
Special mention loans exhibit negative trends and potential weakness that, if left uncorrected, may negatively affect the borrower’s ability to repay its obligations. The risk of default is not imminent and the borrower still demonstrates sufficient financial strength to service debt. |
|
|
Substandard |
|
Substandard loans exhibit well defined weaknesses resulting in a higher probability of default. The borrowers exhibit adverse financial trends and a diminishing ability or willingness to service debt. |
|
|
Doubtful |
|
Doubtful loans exhibit all of the characteristics inherent in substandard loans; however given the severity of weaknesses, the collection of 100% of the principal is unlikely under current conditions. |
|
|
Loss |
|
Loss loans are considered uncollectible over a reasonable period of time and of such little value that its continuance as a bankable asset is not warranted. |
Credit quality information by class at December 31, 2021 and December 31, 2020 was as follows:
|
|
As of |
|
|
|
December 31, 2021 |
|
|
|
(in thousands) |
|
INTERNAL RISK RATING GRADES |
|
Pass |
|
|
Special
Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Loss |
|
|
Total |
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
143,197 |
|
|
$ |
176 |
|
|
$ |
5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
143,378 |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
185,978 |
|
|
|
2,703 |
|
|
|
158 |
|
|
|
— |
|
|
|
— |
|
|
|
188,839 |
|
Non-owner occupied |
|
|
180,830 |
|
|
|
4,819 |
|
|
|
2,563 |
|
|
|
— |
|
|
|
— |
|
|
|
188,212 |
|
Construction and Farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
10,077 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,077 |
|
Commercial |
|
|
59,318 |
|
|
|
15,198 |
|
|
|
308 |
|
|
|
— |
|
|
|
— |
|
|
|
74,824 |
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Lines |
|
|
35,832 |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
— |
|
|
|
35,862 |
|
Single family |
|
|
224,510 |
|
|
|
1,601 |
|
|
|
1,633 |
|
|
|
117 |
|
|
|
— |
|
|
|
227,861 |
|
Multifamily |
|
|
26,952 |
|
|
|
2,141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,093 |
|
All other loans |
|
|
16,798 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,798 |
|
Total |
|
$ |
883,492 |
|
|
$ |
26,638 |
|
|
$ |
4,697 |
|
|
$ |
117 |
|
|
$ |
— |
|
|
$ |
914,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
Nonperforming |
|
Consumer Credit Exposure by Payment Activity |
|
|
$ |
67,275 |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
December 31, 2020 |
|
|
|
(in thousands) |
|
INTERNAL RISK RATING GRADES |
|
Pass |
|
|
Special
Mention |
|
|
Substandard |
|
|
Doubtful |
|
|
Loss |
|
|
Total |
|
Commercial - Non Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
$ |
140,316 |
|
|
$ |
439 |
|
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
140,762 |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner Occupied |
|
|
158,766 |
|
|
|
5,929 |
|
|
|
1,226 |
|
|
|
— |
|
|
|
— |
|
|
|
165,921 |
|
Non-owner occupied |
|
|
143,364 |
|
|
|
22,555 |
|
|
|
2,821 |
|
|
|
— |
|
|
|
— |
|
|
|
168,740 |
|
Construction and Farm land: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
10,644 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,644 |
|
Commercial |
|
|
44,581 |
|
|
|
3,004 |
|
|
|
161 |
|
|
|
— |
|
|
|
— |
|
|
|
47,746 |
|
Residential: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Lines |
|
|
31,211 |
|
|
|
— |
|
|
|
36 |
|
|
|
5 |
|
|
|
— |
|
|
|
31,252 |
|
Single family |
|
|
210,218 |
|
|
|
3,594 |
|
|
|
3,053 |
|
|
|
129 |
|
|
|
— |
|
|
|
216,994 |
|
Multifamily |
|
|
19,623 |
|
|
|
1,873 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,496 |
|
All other loans |
|
|
8,438 |
|
|
|
2,335 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,773 |
|
Total |
|
$ |
767,161 |
|
|
$ |
39,729 |
|
|
$ |
7,304 |
|
|
$ |
134 |
|
|
$ |
— |
|
|
$ |
814,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
|
|
Nonperforming |
|
Consumer Credit Exposure by Payment Activity |
|
|
$ |
21,316 |
|
|
$ |
5 |
|
|