3. Loans (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Major classifications of loans

(Dollars in thousands)
	March 31, 2019		December 31, 2018
Real estate loans:
Construction and land development	$	95,219		94,178
Single-family residential		255,338		252,983
Single-family residential -
Banco de la Gente non-traditional		33,717		34,261
Commercial		278,619		270,055
Multifamily and farmland		39,106		33,163
Total real estate loans		701,999		684,640
Loans not secured by real estate:
Commercial loans		101,572		97,465
Farm loans		984		926
Consumer loans		8,653		9,165
All other loans		10,349		11,827
Total loans		823,557		804,023
Less allowance for loan losses		6,561		6,445
Total net loans	$	816,996		797,578

Age analysis of past due loans, by loan type

March 31, 2019 (Dollars in thousands)
	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	40		-		40		95,179		95,219		-
Single-family residential		4,331		374		4,705		250,633		255,338		-
Single-family residential -
Banco de la Gente non-traditional		2,903		-		2,903		30,814		33,717		-
Commercial		-		-		-		278,619		278,619		-
Multifamily and farmland		-		-		-		39,106		39,106		-
Total real estate loans		7,274		374		7,648		694,351		701,999		-
Loans not secured by real estate:
Commercial loans		317		12		329		101,243		101,572		-
Farm loans		50		-		50		934		984		-
Consumer loans		99		9		108		8,545		8,653		-
All other loans		-		-		-		10,349		10,349		-
Total loans	$	7,740		395		8,135		815,422		823,557		-

December 31, 2018
(Dollars in thousands)
	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	3		-		3		94,175		94,178		-
Single-family residential		4,162		570		4,732		248,251		252,983		-
Single-family residential -
Banco de la Gente non-traditional		4,627		580		5,207		29,054		34,261		-
Commercial		228		-		228		269,827		270,055		-
Multifamily and farmland		-		-		-		33,163		33,163		-
Total real estate loans		9,020		1,150		10,170		674,470		684,640		-
Loans not secured by real estate:
Commercial loans		445		90		535		96,930		97,465		-
Farm loans		-		-		-		926		926		-
Consumer loans		99		4		103		9,062		9,165		-
All other loans		-		-		-		11,827		11,827		-
Total loans	$	9,564		1,244		10,808		793,215		804,023		-

Non-accrual loans

(Dollars in thousands)
	March 31, 2019		December 31, 2018
Real estate loans:
Construction and land development	$	-		1
Single-family residential		1,075		1,530
Single-family residential -
Banco de la Gente non-traditional		1,549		1,440
Commercial		89		244
Multifamily and farmland		-		-
Total real estate loans		2,713		3,215
Loans not secured by real estate:
Commercial loans		75		89
Consumer loans		14		10
Total	$	2,802		3,314

Impaired loans

March 31, 2019
(Dollars in thousands)
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Recorded Investment in Impaired Loans		Related Allowance		Average Outstanding Impaired Loans		YTD Interest Income Recognized
Real estate loans:
Construction and land development	$	275		—		275		275		5		277		4
Single-family residential		4,596		418		3,711		4,129		30		5,090		61
Single-family residential -
Banco de la Gente non-traditional		16,399		—		15,719		15,719		1,026		15,027		252
Commercial		1,754		—		1,749		1,749		1		1,837		23
Multifamily and farmland		—		—		—		—		13		—
Total impaired real estate loans		23,024		418		21,454		21,872		1,075		22,231		340
Loans not secured by real estate:
Commercial loans		270		63		47		110		—		100		1
Consumer loans		111		—		107		107		2		110		1
Total impaired loans	$	23,405		481		21,608		22,089		1,077		22,441		342

December 31, 2018
(Dollars in thousands)
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Recorded Investment in Impaired Loans		Related Allowance		Average Outstanding Impaired Loans		YTD Interest Income Recognized
Real estate loans:
Construction and land development	$	281		—		279		279		5		327		19
Single-family residential		5,059		422		4,188		4,610		32		6,271		261
Single-family residential -
Banco de la Gente non-traditional		16,424		—		15,776		15,776		1,042		14,619		944
Commercial		1,995		—		1,925		1,925		17		2,171		111
Multifamily and farmland		—		—		—		—		—		—		—
Total impaired real estate loans		23,759		422		22,168		22,590		1,096		23,388		1,335
Loans not secured by real estate:
Commercial loans		251		89		1		90		—		96		—
Consumer loans		116		—		113		113		2		137		7
Total impaired loans	$	24,126		511		22,282		22,793		1,098		23,621		1,342

Changes in the allowance for loan losses

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development		Single-Family Residential			Single-Family Residential - Banco de la Gente non-traditional			Commercial		Multifamily and Farmland		Commercial			Farm		Consumer and All Other			Unallocated		Total
Three months ended March 31, 2019
Allowance for loan losses:
Beginning balance	$	813		1,325			1,177			1,278		83		626			-		161			982		6,445
Charge-offs		-		(13	)		-			-		-		(1	)		-		(150	)		-		(164	)
Recoveries		1		48			-			4		-		6			-		43			-		102
Provision		17		(104	)		(3	)		10		15		(21	)		-		108			156		178
Ending balance	$	831		1,256			1,174			1,292		98		610			-		162			1,138		6,561
Allowance for loan losses March 31, 2019
Ending balance: individually
evaluated for impairment	$	-		2			1,008			13		-		-			-		-			-		1,023
Ending balance: collectively
evaluated for impairment		831		1,254			166			1,279		98		610			-		162			1,138		5,538
Ending balance	$	831		1,256			1,174			1,292		98		610			-		162			1,138		6,561
Loans March 31, 2019:
Ending balance	$	95,219		255,338			33,717			278,619		39,106		101,572			984		19,002			-		823,557
Ending balance: individually
evaluated for impairment	$	95		1,758			14,127			1,658		-		63			-		-			-		17,701
Ending balance: collectively
evaluated for impairment	$	95,124		253,580			19,590			276,961		39,106		101,509			984		19,002			-		805,856

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential			Single- Family Residential - Banco de la Gente non-traditional			Commercial		Multifamily and Farmland			Commercial		Farm		Consumer and All Other			Unallocated		Total
Three months ended March 31, 2018
Allowance for loan losses:
Beginning balance	$	804			1,812			1,280			1,193		72			574		-		155			476		6,366
Charge-offs		-			-			-			-		(5	)		-		-		(101	)		-		(106	)
Recoveries		1			5			-			4		1			8		-		63			-		82
Provision		(154	)		(177	)		(15	)		101		5			124		-		19			128		31
Ending balance	$	651			1,640			1,265			1,298		73			706		-		136			604		6,373
Allowance for loan losses March 31, 2018
Ending balance: individually
evaluated for impairment	$	-			-			1,079			12		-			-		-		-			-		1,091
Ending balance: collectively
evaluated for impairment		651			1,640			186			1,286		73			706		-		136			604		5,282
Ending balance	$	651			1,640			1,265			1,298		73			706		-		136			604		6,373
Loans March 31, 2018:
Ending balance	$	82,046			244,061			36,540			261,636		29,108			89,304		1,095		22,034			-		765,824
Ending balance: individually
evaluated for impairment	$	96			1,832			15,190			1,915		-			97		-		-			-		19,130
Ending balance: collectively
evaluated for impairment	$	81,950			242,229			21,350			259,721		29,108			89,207		1,095		22,034			-		746,694

Credit risk profile of each loan type based on internally assigned risk grade

March 31, 2019
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development		Single-Family Residential		Single- Family Residential - Banco de la Gente non-traditional		Commercial		Multifamily and Farmland		Commercial		Farm		Consumer		All Other		Total
1- Excellent Quality	$	329		5,561		-		-		-		545		-		650		-		7,085
2- High Quality		28,895		127,160		-		24,617		361		19,688		-		2,995		2,064		205,780
3- Good Quality		56,203		96,684		13,373		216,741		34,361		74,164		852		4,467		7,540		504,385
4- Management Attention		6,441		19,531		14,946		34,198		3,819		6,764		132		505		745		87,081
5- Watch		3,199		3,496		2,236		2,974		565		327		-		11		-		12,808
6- Substandard		152		2,906		3,162		89		-		84		-		25		-		6,418
7- Doubtful		-		-		-		-		-		-		-		-		-		-
8- Loss		-		-		-		-		-		-		-		-		-		-
Total	$	95,219		255,338		33,717		278,619		39,106		101,572		984		8,653		10,349		823,557

December 31, 2018
(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development		Single- Family Residential		Single- Family Residential - Banco de la Gente non-traditional		Commercial		Multifamily and Farmland		Commercial		Farm		Consumer		All Other		Total
1- Excellent Quality	$	504		5,795		-		-		-		605		-		673		-		7,577
2- High Quality		24,594		128,588		-		25,321		395		20,520		-		3,229		2,145		204,792
3- Good Quality		59,549		92,435		13,776		211,541		27,774		69,651		785		4,699		8,932		489,142
4- Management Attention		5,707		19,200		15,012		30,333		3,906		6,325		141		529		750		81,903
5- Watch		3,669		3,761		2,408		2,616		1,088		264		-		18		-		13,824
6- Substandard		155		3,204		3,065		244		-		100		-		17		-		6,785
7- Doubtful		-		-		-		-		-		-		-		-		-		-
8- Loss		-		-		-		-		-		-		-		-		-		-
Total	$	94,178		252,983		34,261		270,055		33,163		97,465		926		9,165		11,827		804,023