LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2021

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Schedule of major categories of loans

	September 30,			December 31,
	2021			2020
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	3,662	2	$	2,553	1
Farmland		345	—		350	—
Single-family residential		79,049	36		82,520	33
Multi-family		5,846	3		6,105	2
Commercial		55,160	25		57,027	23
Total loans secured by real estate		144,062			148,555
Commercial and Industrial
Commercial and industrial		10,078	4		10,800	4
SBA guaranty		6,930	3		7,200	3
Comm SBA PPP		2,571	1		9,912	4
Total commercial and industrial loans		19,579			27,912
Consumer Loans
Consumer		2,398	1		3,063	1
Automobile		58,635	25		74,242	29
Total consumer loans		61,033			77,305
Loans, net of deferred fees and costs		224,674	100		253,772	100
Less: Allowance for credit losses	$	(2,790)		$	(1,476)
Loans, net		221,884			252,296

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
September 30, 2021	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Balance, beginning of year	$	9	$	2	$	513	$	39	$	218	$	67	$	48	$	—	$	11	$	569	$	1,476
Impact of ASC 326 adoption		16		9		854		63		199		120		(6)		—		46		273		1,574
Charge-offs		—		—		—		—		—		—		—		—		(3)		(190)		(193)
Recoveries		—		—		346		—		—		—		—		—		—		180		526
Provision for loan losses		18		—		(544)		3		11		(21)		(3)		—		18		(75)		(593)
Balance, end of quarter	$	43	$	11	$	1,169	$	105	$	428	$	166	$	39	$	—	$	72	$	757	$	2,790
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	10
Related loan balance		—		—		37		—		2,124		—		—		—		—		—		2,161
Collectively evaluated for impairment:
Balance in allowance	$	43	$	11	$	1,159	$	105	$	428	$	166	$	39	$	—	$	72	$	757	$	2,780
Related loan balance		3,662		345		79,012		5,846		53,036		10,078		6,930		2,571		2,398		58,635		222,513

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
December 31, 2020	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Balance, beginning of year	$	24	$	2	$	849	$	40	$	241	$	69	$	25	$	—	$	11	$	805	$	2,066
Charge-offs		—		—		—		—		—		—		—		—		—		(392)		(392)
Recoveries		—		—		266		—		—		20		—		—		6		199		491
Provision for loan losses		(15)		—		(602)		(1)		(23)		(22)		23		—		(6)		(43)		(689)
Balance, end of the year	$	9	$	2	$	513	$	39	$	218	$	67	$	48	$	—	$	11	$	569	$	1,476
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	11	$	—	$	11
Related loan balance		—		—		132		—		—		4,493		—		—		39		—		4,664
Collectively evaluated for impairment:
Balance in allowance	$	9	$	2	$	513	$	39	$	218	$	67	$	48	$	—	$	—	$	569	$	1,465
Related loan balance		2,553		350		82,388		6,105		57,027		6,307		7,200		9,912		3,024		74,242		249,108

Schedule of allowances for credit losses

	September 30,			September 30,
(dollars in thousands)	2021			2020
Average loans	$	239,492		$	281,773
Net charge offs to average loans (annualized)		(0.19)	%		0.07	%

Schedule of reserve for unfunded commitments

	Nine Months Ended
	Ended September 30,
(dollars in thousands)	2021		2020
Beginning balance	$	33	$	37
Impact of ASC 326 adoption		457		(8)
Reduction of unfunded reserve		(34)		—
Provisions charged to operations		—		—
Ending balance	$	456	$	29

Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans

At September 30, 2021					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Loans Secured by Real Estate
Construction and land	$	3,662	$	—	$	—	$	—	$	3,662
Farmland		345		—		—		—		345
Single-family residential		78,804		98		15		132		79,049
Multi-family		5,846		—		—		—		5,846
Commercial		52,708		—		—		2,452		55,160
Total loans secured by real estate		141,365		98		15		2,584		144,062
Commercial and Industrial
Commercial and industrial		10,078		—		—		—		10,078
SBA guaranty		6,859		—		—		71		6,930
Comm SBA PPP		2,571		—		—		—		2,571
Total commercial and industrial loans		19,508		—		—		71		19,579
Consumer Loans
Consumer		2,398		—		—		—		2,398
Automobile		58,057		452		—		126		58,635
Total consumer loans		60,455		452		—		126		61,033
	$	221,328	$	550	$	15	$	2,781	$	224,674

At December 31, 2020					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Loans Secured by Real Estate
Construction and land	$	2,553	$	—	$	—	$	—	$	2,553
Farmland		350		—		—		—		350
Single-family residential		81,057		1,175		18		270		82,520
Multi-family		6,105		—		—		—		6,105
Commercial		52,424		574		—		4,029		57,027
Total loans secured by real estate		142,489		1,749		18		4,299		148,555
Commercial and Industrial										—
Commercial and industrial		10,800		—		—		—		10,800
SBA guaranty		7,200		—		—		—		7,200
Comm SBA PPP		9,912		—		—		—		9,912
Total commercial and industrial loans		27,912		—		—		—		27,912
Consumer Loans										—
Consumer		3,029		—		—		34		3,063
Automobile		73,611		452		—		179		74,242
Total consumer loans		76,640		452		—		213		77,305
										0
	$	247,041	$	2,201	$	18	$	4,512	$	253,772

Schedule of impaired financing receivables

September 30, 2021			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	—	$	—
Farmland		—		—		—		—		—
Single-family residential		27		37		1		10		49
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		27		37		1		10		49
Commercial and Industrial
Commercial and industrial		—		—		—		—		—
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	27	$	37	$	1	$	10	$	49
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		95		95		1		n/a		99
Multi-family		—		—		—		n/a		—
Commercial		2,452		2,452		333		n/a		2,901
Total loans secured by real estate		2,547		2,547		334		—		3,000
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		71		71		1		n/a		71
Total commercial and industrial loans		71		71		1		—		71
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		126		126		5		n/a		149
Total consumer loans		126		126		5		n/a		149
Total impaired loans with no specific reserve	$	2,744	$	2,744	$	340	$	—	$	3,220

December 31, 2020			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	—	$	—
Farmland		—		—		—		—		—
Single-family residential		27		38		2		11		50
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		27		38		2		11		50
Commercial and Industrial
Commercial and industrial		—		—		—		—		—
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	27	$	38	$	2	$	11	$	50
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		232		232		—		n/a		544
Multi-family		—		—		—		n/a		—
Commercial		4,493		4,493		185		n/a		4,315
Total loans secured by real estate		4,725		4,725		185		—		4,859
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		34		34		4		n/a		43
Automobile		117		117		10		n/a		227
Total consumer loans		151		151		14		n/a		270
Total impaired loans with no specific reserve	$	4,876	$	4,876	$	199	$	—	$	5,129

Schedule of allowance for loan loss and the unearned income on loans

	September 30,			December 31,
(dollars in thousands)	2021			2020
Troubled debt restructured loans	$	37		$	39
Non-accrual and 90+ days past due and still accruing loans to average loans		1.17	%		1.63	%
Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans		99.6	%		32.6	%

Schedule of non accrual loans

							Commercial and
	Loans Secured By Real Estate						Industrial Loans		Consumer Loans
	Single-family
(dollars in thousands)	Residential		Multi-family		Commercial		SBA Guaranty		Consumer		Automobile		Total
December 31, 2019	$	790	$	24	$	3,139	$	—	$	51	$	123	$	4,127
Transfers into nonaccrual		64		—		1,619		—		—		434		2,117
Loans paid down/payoffs		(239)		(16)		(100)		—		(7)		(47)		(409)
Loans returned to accrual status		—		—		(577)		—		—		(17)		(594)
Loans charged off		—		—		—		—		—		(277)		(277)
September 30, 2020	$	615	$	8	$	4,081	$	—	$	44	$	216	$	4,964
December 31, 2020	$	270	$	—	$	4,029	$	—	$	34	$	179	$	4,512
Transfers into nonaccrual		—		—		920		71		1		204		1,196
Loans paid down/payoffs		(138)		—		(1,881)		—		(1)		(68)		(2,088)
Loans returned to accrual status		—		—		(616)		—		(34)		—		(650)
Loans charged off		—		—		—		—		—		(189)		(189)
September 30, 2021	$	132	$	—	$	2,452	$	71	$	—	$	126	$	2,781

Schedule of risk ratings of loans by categories of loans

The following tables provides information with respect to the Company's credit quality indicators by loan portfolio segment on September 30, 2021, and December 31, 2020:

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
September 30, 2021	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Pass	$	3,662	$	345	$	78,917	$	5,846	$	52,708	$	10,078	$	6,859	$	2,571	$	2,398	$	58,509	$	221,893
Special mention		—		—		—		—		—		—		—		—		—		5		5
Substandard		—		—		132		—		2,452		—		71		—		—		42		2,697
Doubtful		—		—		—		—		—		—		—		—		—		79		79
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	3,662	$	345	$	79,049	$	5,846	$	55,160	$	10,078	$	6,930	$	2,571	$	2,398	$	58,635	$	224,674
Nonaccrual	$	—	$	—	$	132	$	—	$	2,452	$	—	$	71	$	—	$	—	$	126	$	2,781
Troubled debt restructures	$	—	$	—	$	37	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	37
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	37	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	37
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		—		1

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
December 31, 2020	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Pass	$	2,553	$	350	$	82,310	$	6,105	$	52,534	$	10,800	$	7,200	$	9,912	$	3,030	$	74,064	$	248,858
Special mention		—		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		210		—		4,493		—		—		—		33		62		4,798
Doubtful		—		—		—		—		—		—		—		—		—		116		116
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	2,553	$	350	$	82,520	$	6,105	$	57,027	$	10,800	$	7,200	$	9,912	$	3,063	$	74,242	$	253,772
Nonaccrual	$	—	$	—	$	270	$	—	$	4,029	$	—	$	—	$	—	$	34	$	179	$	4,512
Troubled debt restructures	$	—	$	—	$	39	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	39
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	39	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	39
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		—		1