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IMPAIRED AND NONPERFORMING LOANS AND OTHER REAL ESTATE OWNED
 9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
IMPAIRED AND NONPERFORMING LOANS AND OTHER REAL ESTATE OWNED

6. IMPAIRED AND NONPERFORMING LOANS AND OTHER REAL ESTATE OWNED

At September 30, 2020 and December 31, 2019, the recorded investment in nonperforming loans was zero. Nonperforming loans include all such loans that are either placed on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. The Company considers a loan to be impaired when, based on current information and events, it is probable that it will be unable to collect all amounts due (principal and interest) according to the contractual terms of the original loan agreement.

 

At September 30, 2020 and December 31, 2019, the recorded investment in other real estate owned (“OREO”) was $846,000. At September 30, 2020 the Company did not own any residential OREO properties nor were there any residential properties in the process of foreclosure. During the first nine months of 2020, the Company did not add any new or sell any of the OREO properties, nor did we decrease the book value on any of the properties. The September 30, 2020 OREO balance of $846,000 consisted of one parcel of land zoned for commercial use. Included in the other asset balance at June 30, 2020 was a repossessed automobile that was acquired in June 2020 with a book value of $19,000. The loan balance at the time of acquisition was $25,000 and was reduced by $6,000 though a charge to the allowance for loan losses. The asset was sold in early July 2020, for no further loss. Included in the other assets balance at December 30, 2019 is a repossessed automobile acquired in December 2019 with a book value of $517,000 that was sold in the first quarter of 2020 for no loss.

 

Nonperforming assets at September 30, 2020 and December 31, 2019 are summarized as follows:

 

(dollars in thousands)  September 30,
2020		   December 31,
2019		 
Nonaccrual loans that are current to terms (less than 30 days past due)  $—   $— 
Nonaccrual loans that are past due   —    — 
Loans past due 90 days and accruing interest   —    — 
Other real estate owned   846    846 
Other assets   —    517 
Total nonperforming assets  $846   $1,363 
           
Nonperforming loans to total loans   0.00%   0.00%
Total nonperforming assets to total assets   0.10%   0.19%

Impaired loans as of and for the periods ended September 30, 2020 and December 31, 2019 are summarized as follows:

(dollars in thousands)  As of September 30, 2020   As of December 31, 2019 
  

 

Recorded

Investment

  

Unpaid
Principal

Balance

  

 

Related

Allowance

  

 

Recorded

Investment

  

Unpaid
Principal

Balance

  

 

Related

Allowance

 
With no related allowance recorded:                              
Real estate-commercial  $5,102   $5,236   $—   $5,530   $5,664   $— 
Real estate-residential   313    400    —    318    405    — 
Subtotal  $5,415   $5,636   $—   $5,848   $6,069   $— 
                               
With an allowance recorded:                              
                               
Real estate-commercial  $1,565   $1,625   $121   $1,622   $1,693   $133 
Real estate-residential   128    128    7    134    134    9 
Subtotal  $1,693   $1,753   $128   $1,756   $1,827   $142 
                               
Total:                              
                               
Real estate-commercial  $6,667   $6,861   $121   $7,152   $7,357   $133 
Real estate-residential   441    528    7    452    539    9 
   $7,108   $7,389   $128   $7,604   $7,896   $142 

 

The following table presents the average balance related to impaired loans for the periods indicated (dollars in thousands):

 

   Average Recorded Investments
for the three months ended		   Average Recorded Investments
for the nine months ended		 
   September 30,
2020		   September 30,
2019		   September 30,
2020		   September 30,
2019		 
Real estate-commercial  $6,761   $7,231   $6,798   $7,347 
Real estate-residential   451    460    447    465 
Total  $7,212   $7,691   $7,245   $7,812 
                     

The following table presents the interest income recognized on impaired loans for the periods indicated (dollars in thousands):

   Interest Income Recognized
for the three months ended		   Interest Income Recognized
for the nine months ended		 
   September 30,
2020		   September 30,
2019		   September 30,
2020		   September 30,
2019		 
Real estate-commercial  $107   $110   $301   $329 
Real estate-residential   5    7    19    19 
Total  $112   $117   $320   $348