Loans (Tables)

6 Months Ended

Jun. 30, 2024

Loans

Major classifications of loans

(Dollars in thousands)
	June 30, 2024			December 31, 2023
Real estate loans:
Construction and land development	$	119,606			136,401
Single-family residential		376,657			372,825
Commercial		456,088			425,820
Multifamily and farmland		70,701			63,042
Total real estate loans		1,023,052			998,088
Loans not secured by real estate:
Commercial		64,464			70,544
Farm		523			550
Consumer		6,483			6,966
All other		16,150			16,918
Total loans		1,110,672			1,093,066
Less allowance for credit losses		(10,016	)		(11,041	)
Total net loans	$	1,100,656			1,082,025

Age analysis of past due loans, by loan type

June 30, 2024
(Dollars in thousands)
	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	-		41		41		119,565		119,606		-
Single-family residential		1,965		3,779		5,744		370,913		376,657		-
Commercial		1,025		-		1,025		455,063		456,088		-
Multifamily and farmland		-		69		69		70,632		70,701		-
Total real estate loans		2,990		3,889		6,879		1,016,173		1,023,052		-
Loans not secured by real estate:
Commercial		83		252		335		64,129		64,464		-
Farm		-		-		-		523		523		-
Consumer		19		15		34		6,449		6,483		-
All other		-		-		-		16,150		16,150		-
Total loans	$	3,092		4,156		7,248		1,103,424		1,110,672		-

December 31, 2023
(Dollars in thousands)
	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	5		45		50		136,351		136,401		-
Single-family residential		3,761		3,302		7,063		365,762		372,825		-
Commercial		13		-		13		425,807		425,820		-
Multifamily and farmland		-		76		76		62,966		63,042		-
Total real estate loans		3,779		3,423		7,202		990,886		998,088		-
Loans not secured by real estate:
Commercial		125		463		588		69,956		70,544		-
Farm		-		1		1		549		550		-
Consumer		63		-		63		6,903		6,966		-
All other		-		-		-		16,918		16,918		-
Total loans	$	3,967		3,887		7,854		1,085,212		1,093,066		-

Non-accrual loans

	June 30, 2024
	Nonaccrual Loans		Nonaccrual Loans		Total
	With No		With		Nonaccrual
(Dollars in thousands)	Allowance		Allowance		Loans
Real estate loans:
Construction and land development	$	41		-		41
Single-family residential		3,779		-		3,779
Multifamily and farmland		69		-		69
Total real estate loans		3,889		-		3,889
Loans not secured by real estate:
Commercial		252		-		252
Consumer		15		-		15
Total	$	4,156		-		4,156

	December 31, 2023
	Nonaccrual Loans		Nonaccrual Loans		Total
	With No		With		Nonaccrual
(Dollars in thousands)	Allowance		Allowance		Loans
Real estate loans:
Construction and land development	$	45		-		45
Single-family residential		3,302		-		3,302
Multifamily and farmland		76		-		76
Total real estate loans		3,423		-		3,423
Loans not secured by real estate:
Commercial		31		432		463
Consumer		1		-		1
Total	$	3,455		432		3,887

Amortized cost basis of the loans to borrowers

(Dollars in thousands)
	Amortized Cost Basis at June 30, 2024		% of Loan Class			Modification Type	Financial Effect
Loan class:
Single-family residential		201		0.05	%	Interest rate reduction	Adjustable rate loan converted to fixed rate loan
Commercial not secured by real estate		73		0.11	%	Term extension	Line of credit converted to amortizing term loan
Total	$	274

(Dollars in thousands)
	Amortized Cost Basis at June 30, 2023		% of Loan Class			Modification Type	Financial Effect
Loan class:
Single-family residential		157		0.05	%	Term extension	Forbearance agreement on matured home equity line of credit (HELOC) that was modified to 180 month term.
Commercial real estate		680		0.16	%	Term extension	Extended existing amortization from 148 months to 173 months to keep existing payment the same with the current market rate.
Total	$	837

Changes in the allowance for loan losses

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential			Commercial			Multifamily and Farmland			Commercial			Farm			Consumer and All Other			Total
Three months ended June 30, 2024
Allowance for credit losses:
Beginning balance	$	3,680			3,597			2,345			313			672			2			238			10,847
Charge-offs		-			(126	)		-			-			(301	)		-			(145	)		(572	)
Recoveries		-			15			1			-			34			-			26			76
Provision (recovery) for
loan losses (1)		(362	)		(2	)		28			(42	)		(37	)		(1	)		81			(335	)
Ending balance	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit loss-loans	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit losses
loan commitments		1,541			1			1			-			19			-			3			1,565
Total allowance for credit losses	$	4,859			3,485			2,375			271			387			1			203			11,581
Six months ended June 30, 2024
Allowance for credit losses:
Beginning balance	$	3,913			3,484			2,317			268			812			2			245			11,041
Charge-offs		-			(126	)		-			-			(747	)		-			(355	)		(1,228	)
Recoveries		-			71			203			-			39			-			62			375
Provision (recovery) for
loan losses (1)		(595	)		55			(146	)		3			264			(1	)		248			(172	)
Ending balance	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit loss-loans	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit losses
loan commitments		1,541			1			1			-			19			-			3			1,565
Total allowance for credit losses	$	4,859			3,485			2,375			271			387			1			203			11,581
(1) Excludes provision for credit losses related to unfunded commitments. Note 8,"Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential		Commercial			Multifamily and Farmland			Commercial			Farm		Consumer and All Other			Unallocated			Total
Three months ended June 30, 2023
Allowance for credit losses:
Beginning balance	$	3,249			3,191		2,244			298			348			1		286			-			9,617
Charge-offs		-			-		-			-			(35	)		-		(142	)		-			(177	)
Recoveries		-			111		1			-			23			-		23			-			158
Provision (recovery) for
loan losses (1)		(22	)		-		120			(10	)		31			1		71			-			191
Ending balance	$	3,227			3,302		2,365			288			367			2		238			-			9,789
Allowance for credit loss-loans	$	3,227			3,302		2,365			288			367			2		238			-			9,789
Allowance for credit losses
loan commitments		2,166			88		-			-			-			1		4			-			2,259
Total allowance for credit losses	$	5,393			3,390		2,365			288			367			3		242			-			12,048
Six months ended June 30, 2023
Allowance for credit losses:
Beginning balance	$	1,415			3,085		3,207			164			657			-		214			1,752			10,494
Adjustment for CECL
implementation (1)		1,584			64		(986	)		115			(295	)		2		48			(1,752	)		(1,220	)
Charge-offs		-			-		-			-			(35	)		-		(308	)		-			(343	)
Recoveries		-			123		3			-			32			-		82			-			240
Provision (recovery) for
loan losses (1)		228			30		141			9			8			-		202			-			618
Ending balance	$	3,227			3,302		2,365			288			367			2		238			-			9,789
Allowance for credit loss-loans	$	3,227			3,302		2,365			288			367			2		238			-			9,789
Allowance for credit losses
loan commitments		2,166			88		-			-			-			1		4			-			2,259
Total allowance for credit losses	$	5,393			3,390		2,365			288			367			3		242			-			12,048
(1) Excludes adjustment for CECL implemenation and provision for credit losses related to unfunded commitments. Note 8,"Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the implementation adjustment and provision for credit losses related to unfunded commitments.

Summary of credit quality indicator, loan class and year of origination, gross loan charge-offs

	Gross Loan Charge-offs by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2024		2023		2022		2021		2020		Prior		Loans		Term Loans		Loans
Real estate loans:
Construction and land development	$	-		126		-		-		-		-		-		-		126
Single-family residential		-		-		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-		-		-
Multifamily and farmland		-		-		-		-		-		-		-		-		-
Total real estate loans		-		126		-		-		-		-		-		-		126
Loans not secured by real estate:
Commercial		-		347		397		3		-		-		-		-		747
Consumer		-		10		4		-		-		234		-		-		248
All other		-		-		-		-		-		107		-		-		107
Total gross charge-offs	$	-		483		401		3		-		341		-		-		1,228

	Gross Loan Charge-offs by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2023		2022		2021		2020		2019		Prior		Loans		Term Loans		Loans
Real estate loans:
Construction and land development	$	-		-		-		-		-		-		-		-		-
Single-family residential		-		-		-		-		-		-		-		-		-
Commercial		-		-		-		-		-		-		-		-		-
Multifamily and farmland		-		-		-		-		-		-		-		-		-
Total real estate loans		-		-		-		-		-		-		-		-		-
Loans not secured by real estate:
Commercial		-		49		51		16		-		13		-		-		129
Farm		-		-		-		-		-		-		-		-		-
Consumer		-		41		53		6		1		468		-		-		569
All other		-		-		-		-		-		-		-		-		-
Total gross charge-offs	$	-		90		104		22		1		481		-		-		698

Schedule of credit quality indicator

	Term Loans by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2024		2023		2022		2021		2020		Prior		Loans		Term Loans		Loans
June 30, 2024
Real Estate Loans
Construction and land development
Pass	$	16,265		37,245		46,498		7,690		6,388		4,727		268		-		119,081
Watch		-		-		-		446		-		-		-		-		446
Substandard		-		-		-		-		-		79		-		-		79
Total Construction and land development	$	16,265		37,245		46,498		8,136		6,388		4,806		268		-		119,606
Single family
Pass	$	10,133		33,974		76,532		46,097		22,691		71,769		107,734		-		368,930
Watch		-		-		-		-		-		1,536		993		-		2,529
Substandard		-		-		661		-		-		4,315		222		-		5,198
Total single family	$	10,133		33,974		77,193		46,097		22,691		77,620		108,949		-		376,657
Commercial
Pass	$	36,985		45,955		119,567		78,229		60,282		109,391		2,212		-		452,621
Watch		-		-		-		-		-		3,062		-		-		3,062
Substandard		-		-		-		-		-		405		-		-		405
Total commercial	$	36,985		45,955		119,567		78,229		60,282		112,858		2,212		-		456,088
Multifamily and farmland
Pass	$	214		8,702		21,287		21,141		6,336		12,473		434		-		70,587
Watch		-		-		-		-		-		45		-		-		45
Substandard		-		-		-		-		-		69		-		-		69
Total multifamily and
farmland	$	214		8,702		21,287		21,141		6,336		12,587		434		-		70,701
Total real estate loans	$	63,597		125,876		264,545		153,603		95,697		207,871		111,863		-		1,023,052
Loans not secured by real estate
Commercial
Pass	$	5,922		10,305		12,915		3,994		2,063		13,848		14,125		-		63,172
Watch		-		558		-		73		276		127		6		-		1,040
Substandard		-		29		223		-		-		-		-		-		252
Total Commercial	$	5,922		10,892		13,138		4,067		2,339		13,975		14,131		-		64,464
Farm
Pass	$	59		163		23		61		-		12		205		-		523
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total farm	$	59		163		23		61		-		12		205		-		523
Consumer
Pass	$	953		1,593		1,001		247		148		95		2,406		-		6,443
Watch		-		-		23		-		-		-		-		-		23
Substandard		-		-		-		-		-		14		3		-		17
Total consumer	$	953		1,593		1,024		247		148		109		2,409		-		6,483
All other
Pass	$	616		-		6,318		425		244		3,153		5,261		-		16,017
Watch		-		-		-		-		-		133		-		-		133
Substandard		-		-		-		-		-		-		-		-		-
Total all other	$	616		-		6,318		425		244		3,286		5,261		-		16,150
Total loans not secured
by real estate	$	7,550		12,648		20,503		4,800		2,731		17,382		22,006		-		87,620
Total loans	$	71,147		138,524		285,048		158,403		98,428		225,253		133,869		-		1,110,672

	Term Loans by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2023		2022		2021		2020		2019		Prior		Loans		Term Loans		Loans
December 31, 2023
Real Estate Loans
Construction and land development
Pass	$	40,034		71,429		10,736		6,692		1,721		3,914		1,337		-		135,863
Watch		-		-		448		-		-		-		-		-		448
Substandard		-		-		-		-		-		90		-		-		90
Total Construction and
land development	$	40,034		71,429		11,184		6,692		1,721		4,004		1,337		-		136,401
Single family
Pass	$	32,333		76,326		47,490		24,813		12,984		64,847		106,962		-		365,755
Watch		-		-		-		-		89		1,389		860		-		2,338
Substandard		-		-		-		-		11		4,342		379		-		4,732
Total single family	$	32,333		76,326		47,490		24,813		13,084		70,578		108,201		-		372,825
Commercial
Pass	$	45,755		109,255		78,645		61,973		29,579		92,753		2,158		-		420,118
Watch		232		-		-		116		-		4,943		-		-		5,291
Substandard		-		-		-		411		-		-		-		-		411
Total commercial	$	45,987		109,255		78,645		62,500		29,579		97,696		2,158		-		425,820
Multifamily and farmland
Pass	$	7,987		13,286		21,512		6,624		3,158		9,851		501		-		62,919
Watch		-		-		-		-		-		47		-		-		47
Substandard		-		-		-		-		-		76		-		-		76
Total multifamily and
farmland	$	7,987		13,286		21,512		6,624		3,158		9,974		501		-		63,042
Total real estate loans	$	126,341		270,296		158,831		100,629		47,542		182,252		112,197		-		998,088
Loans not secured by real estate
Commercial
Pass	$	9,561		14,122		4,841		2,942		2,232		12,030		23,411		-		69,139
Watch		-		-		-		-		57		102		783		-		942
Substandard		31		-		-		-		-		-		-		-		31
Loss		-		82		-		-		-		-		350				432
Total Commercial	$	9,592		14,204		4,841		2,942		2,289		12,132		24,544		-		70,544
Farm
Pass	$	198		42		83		-		1		27		199		-		550
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total farm	$	198		42		83		-		1		27		199		-		550
Consumer
Pass	$	2,262		1,352		404		222		72		58		2,591		-		6,961
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		2		-		-		-		3		-		5
Total consumer	$	2,262		1,352		406		222		72		58		2,594		-		6,966
All other
Pass	$	79		6,401		474		274		599		3,698		5,256		-		16,781
Watch		-		-		-		-		-		74		63		-		137
Substandard		-		-		-		-		-		-		-		-		-
Total all other	$	79		6,401		474		274		599		3,772		5,319		-		16,918
Total loans not secured
by real estate	$	12,131		21,999		5,804		3,438		2,961		15,989		32,656		-		94,978
Total loans	$	138,472		292,295		164,635		104,067		50,503		198,241		144,853		-		1,093,066

Schedule Of Financial difficulty of performance of loans

June 30, 2024
(Dollars in thousands)
	Payment Status (Amortized Cost Basis)
	Current		30 - 89 Days Past Due		90 + Days Past Due
Loan type:
Single-family residential		201
Commercial not secured by real estate		73		-		-
Total	$	274		-		-

June 30, 2023
(Dollars in thousands)
	Payment Status (Amortized Cost Basis)
	Current		30 - 89 Days Past Due		90 + Days Past Due
Loan type:
Single-family residential		157		-		-
Commercial real estate		680		-		-
Total	$	837		-		-