ALLOWANCE FOR LOAN LOSSES

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

ALLOWANCE FOR LOAN LOSSES

NOTE 7 ALLOWANCE FOR LOAN LOSSES

The following tables present activity in the allowance for loan losses for the years ended December 30, 2021 and 2020. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Additionally, the allocation of the allowance by recorded portfolio segment and impairment method is presented as of December 30, 2021 and 2020.

		Real estate secured
(Dollars are in thousands)		Commercial		Construction and Land Development		Residential 1-4 family		Multifamily		Farmland		Commercial		Agriculture		Consumer and All Other		Unallocated		Total
Year ended December 31, 2021
Beginning balance	$	2,281	$	233	$	1,951	$	151	$	97	$	2,275	$	40	$	163	$	-	$	7,191
Charge-offs		(915)		-		(48)		-		-		(92)		-		(78)		-		(1,133)
Recoveries		2		6		85		-		29		137		1		45		-		305
Provision		766		(50)		249		103		23		(1,221)		(13)		(22)		537		372
Ending balance	$	2,134	$	189	$	2,237	$	254	$	149	$	1,099	$	28	$	108	$	537	$	6,735
Allowance for loan losses at December 31, 2021
Individually evluated for impairment	$	94	$	-	$	53	$	-	$	17	$	2	$	-	$	-	$	-	$	166
Collectively evaluated for impairment		2,040		189		2,184		254		132		1,097		28		108		537		6,569
Total	$	2,134	$	189	$	2,237	$	254	$	149	$	1,099	$	28	$	108	$	537	$	6,735
Loans at December 31, 2021
Individually evluated for impairment	$	414	$	24	$	1,848	$	-	$	517	$	28	$	-	$	2	$	-	$	2,833
Collectively evaluated for impairment		205,748		32,301		222,682		33,048		18,218		54,297		4,021		20,596		-		590,911
Total	$	206,162	$	32,325	$	224,530	$	33,048	$	18,735	$	54,325	$	4,021	$	20,598	$	-	$	593,744

		Real estate secured
(Dollars are in thousands)		Commercial		Construction and Land Development		Residential 1-4 family		Multifamily		Farmland		Commercial		Agriculture		Consumer and All Other		Unallocated		Total
Year ended December 31, 2020
Beginning balance	$	1,248	$	158	$	1,736	$	104	$	109	$	1,789	$	27	$	195	$	2	$	5,368
Charge-offs		(65)		-		(165)		-		(42)		(329)		(15)		(85)		-		(701)
Recoveries		57		-		38		-		33		40		1		55		-		224
Provision		1,041		75		342		47		(3)		775		27		(2)		(2)		2,300
Ending balance	$	2,281	$	233	$	1,951	$	151	$	97	$	2,275	$	40	$	163	$	-	$	7,191
Allowance for loan losses at December 31, 2020
Individually evluated for impairment	$	574	$	-	$	72	$	-	$	2	$	404	$	-	$	-	$	-	$	1,052
Collectively evaluated for impairment		1,707		233		1,879		151		95		1,871		40		163		-		6,139
Total	$	2,281	$	233	$	1,951	$	151	$	97	$	2,275	$	40	$	163	$	-	$	7,191
Loans at December 31, 2020
Individually evluated for impairment	$	1,951	$	99	$	1,999	$	-	$	599	$	429	$	-	$	5	$	-	$	5,082
Collectively evaluated for impairment		177,430		24,932		220,981		16,569		17,769		85,581		4,450		22,772		-		570,484
Total	$	179,381	$	25,031	$	222,980	$	16,569	$	18,368	$	86,010	$	4,450	$	22,777	$	-	$	575,566

In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision. Due to the underlying SBA guarantee provided for PPP loans, these accounts were not included in either the portfolio segment or impairment calculations at December 31, 2021 and 2020. Additionally, due to uncertainties presented by the ongoing pandemic and the resulting economic uncertainty, internal and external qualitative factors were revised accordingly. For 2021, external qualitative factors were adjusted to consider the impact of inflation.