ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

NOTE 7 ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

In determining the amount of our allowance for credit 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.

The following table presents a disaggregated analysis of activity in the allowance for credit losses as of March 31, 2023:

		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
Three months ended March 31, 2023
Beginning balance	$	2,364	$	345	$	2,364	$	262	$	153	$	381	$	32	$	386	$	440	$	6,727
Adjustment to allowance for adoption of ASU 2016-13		(299)		164		275		12		75		241		(5)		(103)		(440)		(80)
Charge-offs		-		-		-		-		-		(5)		-		(78)		-		(83)
Recoveries		-		5		9		-		-		1		-		58		-		73
Provision for credit losses		92		(42)		(29)		28		(36)		(30)		4		37		-		24
Ending balance	$	2,157	$	472	$	2,619	$	302	$	192	$	588	$	31	$	300	$	-	$	6,661

The following tables present a disaggregated analysis of activity in the allowance for loan losses, for comparative periods, prior to the adoption of ASU 2016-13:

		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, 2022
Beginning balance	$	2,134	$	189	$	2,237	$	254	$	149	$	1,099	$	28	$	108	$	537	$	6,735
Charge-offs		(5)		(149)		(64)		(111)		(1)		(45)		(1)		(559)		-		(935)
Recoveries		33		6		100		2		14		31		1		115		-		302
Provision		202		299		91		117		(9)		(704)		4		722		(97)		625
Ending balance	$	2,364	$	345	$	2,364	$	262	$	153	$	381	$	32	$	386	$	440	$	6,727
Allowance for loan losses at December 31, 2022
Individually evaluated for impairment	$	63	$	-	$	23	$	-	$	-	$	-	$	-	$	-	$	-	$	86
Collectively evaluated for impairment		2,301		345		2,341		262		153		381		32		386		440		6,641
$	2,364	$	345	$	2,364	$	262	$	153	$	381	$	32	$	386	$	440	$	6,727
Loans at December 31, 2022
Individually evaluated for impairment	$	358	$	471	$	1,649	$	-	$	248	$	23	$	-	$	-	$	-	$	2,749
Collectively evaluated for impairment		196,711		41,999		225,583		29,710		17,496		46,965		3,756		19,644		-		581,864
$	197,069	$	42,470	$	227,232	$	29,710	$	17,744	$	46,988	$	3,756	$	19,644	$	-	$	584,613

		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
For the three months ended March 31, 2022
Beginning balance		$	2,134			$	189		$	2,237			$	254			$	149			$	1,099			$	28		$	108			$	537		$	6,735
Charge-offs			—				—			—				(61	)			—				(28	)			—			(14	)			—			(103	)
Recoveries			—				—			14				—				—				11				—			2				—			27
Provision			(2	)			40			(53	)			120				(6	)			(77	)			—			16				62			100
Ending balance		$	2,132			$	229		$	2,198			$	313			$	143			$	1,005			$	28		$	112			$	599		$	6,759
Allowance for loan losses as of March 31, 2022
Individually evaluated for impairment		$	86			$	—		$	49			$	50			$	13			$	1			$	—		$	—			$	—		$	199
Collectively evaluated for impairment			2,046				229			2,149				263				130				1,004				28			112				599			6,560
	$	2,132			$	229		$	2,198			$	313			$	143			$	1,005			$	28		$	112			$	599		$	6,759
Loans as of March 31, 2022
Individually evaluated for impairment		$	404			$	17		$	1,786			$	50			$	494			$	26			$	—		$	1			$	—		$	2,778
Collectively evaluated for impairment			206,935				38,829			222,692				34,359				17,613				47,594				3,916			20,416				—			592,354
	$	207,339			$	38,846		$	224,478			$	34,409			$	18,107			$	47,620			$	3,916		$	20,417			$	—		$	595,132

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