ALLOWANCE FOR LOAN LOSSES

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

ALLOWANCE FOR LOAN LOSSES

NOTE 7 ALLOWANCE FOR LOAN LOSSES

In determining the amount of our allowance for loan losses, 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 June 30, 2022 and December 31, 2021. Additionally, due to uncertainties presented by the ongoing pandemic and the resulting economic uncertainty, internal and external qualitative factors were revised accordingly. This revision included reviewing our internal scoring related to loan modifications and extensions, and external factors, specifically, unemployment and other economic factors.

The following table presents activity in the allowance for loan losses for the six- and three-month periods ended June 30, 2022 and 2021, respectively. Additionally, the allocation of the allowance by recorded portfolio segment and impairment method is presented as of June 30, 2022, and December 31, 2021, respectively.

		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
Six months ended             June 30, 2022
Beginning balance	$	2,134	$	189	$	2,237	$	254	$	149	$	1,099	$	28	$	108	$	537	$	6,735
Charge-offs		-		-		(24)		(61)		-		(28)		-		(45)		-		(158)
Recoveries		-		-		22		-		-		14		-		28		-		64
Provision		28		261		4		215		(8)		(232)		1		79		(173)		175
Ending balance	$	2,162	$	450	$	2,239	$	408	$	141	$	853	$	29	$	170	$	364	$	6,816
Three months ended       June 30, 2022
Beginning balance	$	2,132	$	229	$	2,198	$	313	$	143	$	1,005	$	28	$	112	$	599	$	6,759
Charge-offs		-		-		(24)		-		-		-		-		(31)		-		(55)
Recoveries		-		-		8		-		-		3		-		26		-		37
Provision		30		221		57		95		(2)		(155)		1		63		(235)		75
Ending balance	$	2,162	$	450	$	2,239	$	408	$	141	$	853	$	29	$	170	$	364	$	6,816
Allowance for loan losses at June 30, 2022
Individually evluated for impairment	$	77	$	207	$	47	$	50	$	-	$	-	$	-	$	-	$	-	$	381
Collectively evaluated for impairment		2,085		243		2,192		358		141		853		29		170		364		6,435
	$	2,162	$	450	$	2,239	$	408	$	141	$	853	$	29	$	170	$	364	$	6,816
Loans at June 30, 2022
Individually evluated for impairment	$	394	$	755	$	1,743	$	50	$	281	$	25	$	-	$	-	$	-	$	3,248
Collectively evaluated for impairment		196,216		36,935		221,979		37,561		17,774		46,672		3,623		21,623		-		582,383
	$	196,610	$	37,690	$	223,722	$	37,611	$	18,055	$	46,697	$	3,623	$	21,623	$	-	$	585,631

		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
Allowance for loan losses at December 31, 2021
Individually evaluated 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
	$	2,134	$	189	$	2,237	$	254	$	149	$	1,099	$	28	$	108	$	537	$	6,735
Loans at December 31, 2021
Individually evaluated 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
	$	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
Six months ended                       June 30, 2021
Beginning balance	$	2,281	$	233	$	1,951	$	151	$	97	$	2,275	$	40	$	163	$	-	$	7,191
Charge-offs		(915)		-		(10)		-		-		(92)		-		(28)		-		(1,045)
Recoveries		2		-		17		-		-		131		1		27		-		178
Provision		783		(78)		88		9		40		(398)		(13)		(59)		-		372
Ending balance	$	2,151	$	155	$	2,046	$	160	$	137	$	1,916	$	28	$	103	$	-	$	6,696
Three months ended               June 30, 2021
Beginning balance	$	2,461	$	186	$	2,283	$	165	$	156	$	1,885	$	33	$	124	$	-	$	7,293
Charge-offs		(915)		-		(4)		-		-		-		-		(15)		-		(934)
Recoveries		-		-		9		-		-		131		1		10		-		151
Provision		605		(31)		(242)		(5)		(19)		(100)		(6)		(16)		-		186
Ending balance	$	2,151	$	155	$	2,046	$	160	$	137	$	1,916	$	28	$	103	$	-	$	6,696

Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.