XML 33 R23.htm IDEA: XBRL DOCUMENT v3.21.2
NOTE 3 - LOANS (Tables)
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
composition of loans receivable and loans held-for-sale

The composition of loans receivable and loans held-for-sale is as follows:

(In thousands)    June 30, 2021     December 31, 2020  
Residential 1-4 family  $353,652   $352,001 
Residential 5+ multifamily   36,972    37,058 
Construction of residential 1-4 family   12,251    8,814 
Home equity lines of credit   25,262    27,804 
Residential real estate   428,137    425,677 
Commercial   312,646    310,841 
Construction of commercial   41,983    31,722 
Commercial real estate   354,629    342,563 
Farm land   3,529    3,198 
Vacant land   13,006    14,079 
Real estate secured   799,301    785,517 
Commercial and industrial ex PPP Loans   156,849    140,516 
PPP Loans   61,908    86,632 
Total Commercial and industrial   218,757    227,148 
Municipal   18,341    21,512 
Consumer   9,543    7,687 
Loans receivable, gross   1,045,942    1,041,864 
Deferred loan origination fees, net   (889)   (372)
Allowance for loan losses   (12,708)   (13,754)
Loans receivable, net  $1,032,345   $1,027,738 
Loans held-for-sale          
Residential 1-4 family  $415   $2,735 
composition of loans receivable by risk rating grade

The composition of loans receivable by risk rating grade is presented below. The increase in the balance of loans classified as "substandard" at June 30, 2021 primarily reflected the downgrade of loans to certain borrowers in the hospitality and entertainment industries who are receiving loan payments deferrals due to COVID-19. Such loans were classified as either "pass" or "special mention" at December 31, 2020. In second quarter 2021, Salisbury sold certain commercial construction and commercial real estate loans, which were rated as "substandard" at December 31, 2020.

(in thousands) Pass Special mention Substandard Doubtful Loss Total
June 30, 2021                              
Residential 1-4 family  $344,976   $4,553   $4,123   $-   $-   $353,652 
Residential 5+ multifamily   35,204    85    1,683    -    -    36,972 
Construction of residential 1-4 family   12,251    -    -    -    -    12,251 
Home equity lines of credit   24,879    236    147    -    -    25,262 
Residential real estate   417,310    4,874    5,953    -    -    428,137 
Commercial   269,496    6,855    36,295    -    -    312,646 
Construction of commercial   41,983    -    -    -    -    41,983 
Commercial real estate   311,479    6,855    36,295    -    -    354,629 
Farm land   1,619    1,316    594    -    -    3,529 
Vacant land   12,927    44    35    -    -    13,006 
Real estate secured   743,335    13,089    42,877    -    -    799,301 
Commercial and industrial   215,693    914    1,867    283    -    218,757 
Municipal   18,341    -    -    -    -    18,341 
Consumer   9,520    1    22    -    -    9,543 
Loans receivable, gross  $986,889   $14,004   $44,766   $283   $-   $1,045,942 
(in thousands) Pass Special mention Substandard Doubtful Loss Total
December 31, 2020                              
Residential 1-4 family  $342,243   $5,615   $4,143   $-   $-   $352,001 
Residential 5+ multifamily   35,272    90    1,696    -    -    37,058 
Construction of residential 1-4 family   8,814    -    -    -    -    8,814 
Home equity lines of credit   27,393    257    154    -    -    27,804 
Residential real estate   413,722    5,962    5,993    -    -    425,677 
Commercial   276,866    15,565    18,410    -    -    310,841 
Construction of commercial   31,493    -    229    -    -    31,722 
Commercial real estate   308,359    15,565    18,639    -    -    342,563 
Farm land   1,612    -    1,586    -    -    3,198 
Vacant land   13,992    50    37    -    -    14,079 
Real estate secured   737,685    21,577    26,255    -    -    785,517 
Commercial and industrial   224,906    1,271    632    339    -    227,148 
Municipal   21,512    -    -    -    -    21,512 
Consumer   7,660    -    27    -    -    7,687 
Loans receivable, gross  $991,763   $22,848   $26,914   $339   $-   $1,041,864 
composition of loans receivable by delinquency status

The composition of loans receivable by delinquency status is as follows:

      Past due   
                         
               180  30  Accruing   
(in thousands)          days  days  90 days 
      30-59  60-89  90-179  and  and  and  Non-
    Current  days  days  days  over  over  over  accrual
June 30, 2021                        
Residential 1-4 family  $352,735   $128   $457   $-   $332   $917   $-   $1,544 
Residential 5+ multifamily   36,111    -    -    -    861    861    -    861 
Construction of residential 1-4 family   12,251    -    -    -    -    -    -    - 
Home equity lines of credit   24,923    182    46    7    104    339    -    147 
Residential real estate   426,020    310    503    7    1,297    2,117    -    2,552 
Commercial   310,574    1,538    31    503    -    2,072    -    2,000 
Construction of commercial   41,983    -    -    -    -    -    -    - 
Commercial real estate   352,557    1,538    31    503    -    2,072    -    2,000 
Farm land   2,940    -    139    -    450    589    -    594 
Vacant land   13,006    -    -    -    -    -    -    35 
Real estate secured   794,523    1,848    673    510    1,747    4,778    -    5,181 
Commercial and industrial   218,037    674    -    -    46    720    11    347 
Municipal   18,341    -    -    -    -    -    -    - 
Consumer   9,539    3    1    -    -    4    -    - 
Loans receivable, gross  $1,040,440   $2,525   $674   $510   $1,793   $5,502   $11   $5,528 

 

      Past due   
                         
               180  30  Accruing   
(in thousands)          days  days  90 days 
      30-59  60-89  90-179  and  and  and  Non-
    Current  days  days  days  over  over  over  accrual
December 31, 2020                        
Residential 1-4 family  $349,382   $1,419   $308   $673   $219   $2,619   $-   $1,508 
Residential 5+ multifamily   36,197    -    -    -    861    861    -    861 
Construction of residential 1-4 family   8,814    -    -    -    -    -    -    - 
Home equity lines of credit   27,522    157    9    -    116    282    -    154 
Residential real estate   421,915    1,576    317    673    1,196    3,762    -    2,523 
Commercial   307,927    1,855    530    95    434    2,914    -    2,544 
Construction of commercial   31,722    -    -    -    -    -    -    - 
Commercial real estate   339,649    1,855    530    95    434    2,914    -    2,544 
Farm land   2,594    154    450    -    -    604    -    158 
Vacant land   14,079    -    -    -    -    -    -    37 
Real estate secured   778,237    3,585    1,297    768    1,630    7,280    -    5,262 
Commercial and industrial   224,496    2,148    457    1    46    2,652    12    374 
Municipal   21,512    -    -    -    -    -    -    - 
Consumer   7,677    10    -    -    -    10    -    - 
Loans receivable, gross  $1,031,922   $5,743   $1,754   $769   $1,676   $9,942   $12   $5,636 
Changes in the allowance for loan losses

Changes in the allowance for loan losses are as follows:

In second quarter 2021, Salisbury sold certain loans which the Bank classified as "substandard" credit risks. The sale resulted in charge-offs of approximately $18 thousand for commercial construction loans and $131 thousand for commercial and industrial loans as presented in the table below.

                     
    Three months ended June 30, 2021   Three months ended June 30, 2020
(in thousands)   Beginning balance   Provision (Benefit)   Charge- offs   Reco- veries   Ending balance   Beginning balance     Provision (Benefit)   Charge- offs   Reco- veries   Ending balance
Residential 1-4 family   $ 2,430     $ (55 )    $ (1 )   $ 3     $ 2,377     $ 2,706       $ 342     $ -   $ -     $ 3,048  
Residential 5+ multifamily     622       (77 )      -     -       545       508         122       (41 )      -       589  
Construction of residential 1-4 family     77       18       -       -       95       87         -       -       -       87  
Home equity lines of credit     195       (5 )      -       -       190       278         5     -       -       283  
Residential real estate     3,324       (119 )      (1 )     3     3,207       3,579         469       (41 )     -     4,007  
Commercial     7,080       (875 )      -     7       6,212       4,519         645       (4 )     -       5,160  
Construction of commercial     584       102       (18 )      -       668       126         79       -       -       205  
Commercial real estate     7,664       (773 )      (18 )     7       6,880       4,645         724       (4 )     -       5,365  
Farm land     50       (18 )      -       -       32       52         8       -       -       60  
Vacant land     109       (22 )      -       -       87       144         38     -       -       182  
Real estate secured     11,147       (932 )      (19 )     10       10,206       8,420         1,239       (45 )     -       9,614  
Commercial and industrial     1,369       (27 )     (131 )      45       1,256       1,071         444     -     -       1,515  
Municipal     43       (11 )     -       -       32       53         (17 )      -       -       36  
Consumer     52       22       (11 )     3       66       102         (20 )      (13 )     5       74  
Unallocated     1,275       (127 )      -       -       1,148       972         160       -       -       1,132  
Totals   $ 13,886     $ (1,075 )    $ (161 )   $ 58     $ 12,708     $ 10,618       $ 1,806     $ (58 )   $ 5     $ 12,371  

 

                     
    Six months ended June 30, 2021   Six months ended June 30, 2020
(in thousands)   Beginning balance   Provision (Benefit)   Charge- offs   Reco- veries   Ending balance   Beginning balance     Provision (Benefit)   Charge- offs   Reco- veries   Ending balance
Residential 1-4 family   $ 2,646     $ (264 )    $ (10 )   $ 5     $ 2,377     $ 2,393       $ 647     $ -   $ 8     $ 3,048  
Residential 5+ multifamily     686       (141 )      -     -       545       446         185       (42 )      -       589  
Construction of residential 1-4 family     65       30       -       -       95       75         12       -       -       87  
Home equity lines of credit     252       (62 )      -       -       190       197         86     -       -       283  
Residential real estate     3,649       (437 )      (10 )     5     3,207       3,111         930       (42 )     8     4,007  
Commercial     6,546       (345 )      (6 )     17       6,212       3,742         1,402       (3 )     19       5,160  
Construction of commercial     596       90       (18 )      -       668       104         101       -       -       205  
Commercial real estate     7,142       (255 )      (24 )     17       6,880       3,846         1,503       (3 )     19       5,365  
Farm land     59       (27 )      -       -       32       47         13       -       -       60  
Vacant land     180       (93 )      -       -       87       71         111     -       -       182  
Real estate secured     11,030       (812 )      (34 )     22       10,206       7,075         2,557       (45 )     27       9,614  
Commercial and industrial     1,397       (55 )     (131 )      45       1,256       1,145         370     -     -       1,515  
Municipal     43       (11 )     -       -       32       46         (10 )      -       -       36  
Consumer     77       20       (15 )     (16 )      66       60         32       (25 )     7       74  
Unallocated     1,207       (59 )      -       -       1,148       569         563       -       -       1,132  
Totals   $ 13,754     $ (917 )    $ (180 )   $ 51     $ 12,708     $ 8,895       $ 3,512     $ (70 )   $ 34     $ 12,371  
composition of loans receivable and the allowance for loan losses

The composition of loans receivable and the allowance for loan losses is as follows:

  (in thousands)  Collectively evaluated  Individually evaluated  Total portfolio
    Loans    Allowance    Loans    Allowance    Loans    Allowance 
June 30, 2021                              
Residential 1-4 family  $350,241   $2,374   $3,411   $3   $353,652   $2,377 
Residential 5+ multifamily   36,010    545    962    -    36,972    545 
Construction of residential 1-4 family   12,251    95    -    -    12,251    95 
Home equity lines of credit   25,115    190    147    -    25,262    190 
Residential real estate   423,617    3,204    4,520    3    428,137    3,207 
Commercial   308,165    6,167    4,481    45    312,646    6,212 
Construction of commercial   41,983    668    -    -    41,983    668 
Commercial real estate   350,148    6,835    4,481    45    354,629    6,880 
Farm land   2,935    32    594    -    3,529    32 
Vacant land   12,846    87    160    -    13,006    87 
Real estate secured   789,546    10,158    9,755    48    799,301    10,206 
Commercial and industrial   218,307    1,141    450    115    218,757    1,256 
Municipal   18,341    32    -    -    18,341    32 
Consumer   9,522    66    21    -    9,543    66 
Unallocated allowance   -    1,148    -    -    -    1,148 
Totals  $1,035,716   $12,545   $10,226   $163   $1,045,942   $12,708 

  

  (in thousands)  Collectively evaluated  Individually evaluated  Total portfolio
    Loans    Allowance    Loans    Allowance    Loans    Allowance 
December 31, 2020                              
Residential 1-4 family  $347,695   $2,445   $4,306   $201   $352,001   $2,646 
Residential 5+ multifamily   36,094    686    964    -    37,058    686 
Construction of residential 1-4 family   8,814    65    -    -    8,814    65 
Home equity lines of credit   27,650    232    154    20    27,804    252 
Residential real estate   420,253    3,428    5,424    221    425,677    3,649 
Commercial   305,193    6,298    5,648    248    310,841    6,546 
Construction of commercial   31,722    596    -    -    31,722    596 
Commercial real estate   336,915    6,894    5,648    248    342,563    7,142 
Farm land   3,040    59    158    -    3,198    59 
Vacant land   13,912    178    167    2    14,079    180 
Real estate secured   774,120    10,559    11,397    471    785,517    11,030 
Commercial and industrial   226,662    1,223    486    174    227,148    1,397 
Municipal   21,512    43    -    -    21,512    43 
Consumer   7,661    59    26    18    7,687    77 
Unallocated allowance   -    1,207    -    -    -    1,207 
Totals  $1,029,955   $13,091   $11,909   $663   $1,041,864   $13,754 
credit quality segments of loans receivable and the allowance for loan losses

The credit quality segments of loans receivable and the allowance for loan losses are as follows:

June 30, 2021 (in thousands) Collectively evaluated  Individually evaluated  Total portfolio
    Loans    Allowance    Loans    Allowance    Loans   Allowance 
Performing loans  $998,869   $8,644   $-   $-   $998,869   $8,644 
Potential problem loans 1   36,847    2,753    -    -    36,847    2,753 
Impaired loans   -    -    10,226    163    10,226    163 
Unallocated allowance   -    1,148    -    -    -    1,148 
Totals  $1,035,716   $12,545   $10,226   $163   $1,045,942   $12,708 

 

 

December 31, 2020 (in thousands) Collectively evaluated  Individually evaluated  Total portfolio
    Loans    Allowance    Loans    Allowance    Loans   Allowance 
Performing loans  $1,011,757   $10,424   $-   $-   $1,011,757   $10,424 
Potential problem loans 1   18,198    1,460    -    -    18,198    1,460 
Impaired loans   -    -    11,909    663    11,909    663 
Unallocated allowance   -    1,207    -    -    -    1,207 
Totals  $1,029,955   $13,091   $11,909   $663   $1,041,864   $13,754 

1 Potential problem loans consist of performing loans that have been assigned a substandard credit risk rating and are not classified as impaired.

Certain data with respect to loans individually evaluated for impairment

A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the present value of expected cash flows or fair value of collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows:

   Impaired loans with specific allowance   Impaired loans with no specific allowance
(in thousands)  Loan balance           Loan balance     
    Recorded Investment    Note    Average    Specific allowance    Income recognized    Recorded Investment    Note    Average    Income recognized 
June 30, 2021                           
Residential  $47   $49   $1,580   $3   $1   $4,326   $4,776   $3,401   $40 
Home equity lines of credit   -    -    32    -    -    147    188    168    - 
Residential real estate   47    49    1,612    3    1    4,473    4,964    3,569    40 
Commercial   1,140    1,164    2,294    45    25    3,341    3,984    3,024    44 
Construction of commercial   -    -    -    -    -    -    -    -    - 
Farm land   -    -    -    -    -    594    764    344    - 
Vacant land   -    -    104    -    -    160    178    60    4 
Real estate secured   1,187    1,213    4,010    48    26    8,568    9,890    6,997    88 
Commercial and industrial   364    377    365    115    2    86    243    92    1 
Consumer   -    -    11    -    -    21    21    13    1 
Totals  $1,551   $1,590   $4,386   $163   $28   $8,675   $10,154   $7,102   $90 

Note: The income recognized is for the six month period ended June 30, 2021.

   Impaired loans with specific allowance   Impaired loans with no specific allowance
(in thousands)  Loan balance           Loan balance     
    Recorded Investment    Note    Average    Specific allowance    Income recognized    Recorded Investment    Note    Average    Income recognized 
June 30, 2020                           
Residential  $4,203   $4,345   $4,066   $406   $45   $1,696   $2,043   $1,919   $13 
Home equity lines of credit   227    540    79    20    -    38    74    100    - 
Residential real estate   4,430    4,885    4,145    426    45    1,734    2,117    2,019    13 
Commercial   3,727    3,818    3,452    324    75    816    1,411    899    16 
Construction of commercial   -    -    -    -    -    -    -    -    - 
Farm land   -    -    -    -    -    174    325    181    - 
Vacant land   39    41    40    3    -    134    151    137    5 
Real estate secured   8,196    8,744    7,637    753    120    2,858    4,004    3,236    34 
Commercial and industrial   896    901    241    376    7    -    151    64    - 
Consumer   31    31    34    19    1    -    -    -    - 
Totals  $9,123   $9,676   $7,912   $1,148   $128   $2,858   $4,155   $3,300   $34 

Note: The income recognized is for the six month period ended June 30, 2020. 

   Impaired loans with specific allowance   Impaired loans with no specific allowance
(in thousands)  Loan balance           Loan balance     
    Recorded Investment    Note    Average    Specific allowance    Income recognized    Recorded Investment    Note    Average    Income recognized 
December 31, 2020                           
Residential  $2,971   $3,040   $3,862   $201   $72   $2,299   $2,676   $1,993   $27 
Home equity lines of credit   75    75    76    20    -    79    117    103    - 
Residential real estate   3,046    3,115    3,938    221    72    2,378    2,793    2,096    27 
Commercial   3,058    3,117    3,325    248    132    2,590    3,203    1,139    91 
Construction of commercial   -    -    -    -    -    -    -    -    - 
Farm land   -    -    -    -    -    158    319    173    - 
Vacant land   37    40    39    2    -    130    145    134    9 
Real estate secured   6,141    6,272    7,302    471    204    5,256    6,460    3,542    127 
Commercial and industrial   416    424    482    174    4    70    283    58    2 
Consumer   26    26    31    18    2    -    -    -    - 
Totals  $6,583   $6,722   $7,815   $663   $210   $5,326   $6,743   $3,600   $129