LOANS (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of Loans receivable outstanding

(Dollars are in thousands)	June 30, 2023		December 31, 2022
Real estate secured:
Commercial	$	209,780	$	197,069
Construction and land development		43,279		42,470
Residential 1-4 family		231,626		227,232
Multifamily		34,140		29,710
Farmland		17,628		17,744
Total real estate loans		536,453		514,225
Commercial		47,720		46,697
Agriculture		3,607		3,756
Consumer installment loans		20,651		19,309
All other loans		607		626
Total loans	$	609,038	$	584,613

Summary of loans receivable on nonaccrual status

				CECL						Incurred Loss
				June 30, 2023						December 31, 2022
(Dollars are in thousands)				With No Allowance		With an Allowance		Total
Real estate secured:
	Commercial		$	-	$	268	$	268	$	-
	Construction and land development			-		-		-		471
	Residential 1-4 family			2,097		-		2,097		2,597
	Multifamily			199		-		199		268
	Farmland			-		-		-		41
		Total real estate loans		2,296		268		2,564		3,377
Commercial				-		-		-		-
Consumer installment loans and other loans				23		-		23		36
Total loans receivable on nonaccrual status			$	2,319	$	268	$	2,587	$	3,413

Schedule of summary of impaired loans

As of December 31, 2022 (Dollars are in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
With no related allowance recorded:
Real estate secured:
Commercial	$	90	$	131	$	—	$	124
Construction and land development		471		491		—		114
Residential 1-4 family		1,617		1,972		—		1,585
Multifamily		—		—		—		—
Farmland		248		417		—		307
Commercial		23		31		—		14
Agriculture		—		—		—		—
Consumer installment loans		—		—		—		1
All other loans		—		—		—		—
With an allowance recorded:
Real estate secured:
Commercial		268		338		63		407
Construction and land development		—		—		—		291
Residential 1-4 family		32		48		23		201
Multifamily		—		—		—		20
Farmland		—		—		—		63
Commercial		—		—		—		27
Agriculture		—		—		—		—
Consumer installment loans		—		—		—		—
All other loans		—		—		—		—
Total	$	2,749	$	3,428	$	86	$	3,154

Upon adoption of ASU 2016-13 the Company began evaluating loans that do not share risk characteristics on an individual basis utilizing the collateral or discounted cash flow methods as described in Note 2 Summary of Significant Accounting Policies. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to those loans as June 30, 2023:

As of June 30, 2023 (Dollars are in thousands)	Unpaid Principal Balance		Related Allowance
Real estate secured:
Commercial	$	268	$	64
Construction and land development		—		—
Residential 1-4 family		262		—
Multifamily		—		—
Farmland		—		—
Total real estate secured		530		64
Commercial		—		—
Agriculture		109		57
Consumer installment loans		—		—
Total	$	639	$	121

Summary age analysis of past due loans receivable

As of June 30, 2023 (Dollars are in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans
Real estate secured:
Commercial	$	99	$	—	$	268	$	367	$	209,413	$	209,780
Construction and land development		—		—		—		—		43,279		43,279
Residential 1-4 family		1,450		877		751		3,078		228,548		231,626
Multifamily		—		—		—		—		34,140		34,140
Farmland		—		—		—		—		17,628		17,628
Total real estate loans		1,549		877		1,019		3,445		533,008		536,453
Commercial		17		—		—		17		47,703		47,720
Agriculture		109		—		—		109		3,498		3,607
Consumer installment loans		50		17		23		90		20,561		20,651
All other loans		—		—		—		—		607		607
Total loans	$	1,725	$	894	$	1,042	$	3,661	$	605,377	$	609,038

The following table is an age analysis of past due loans receivable as of December 31, 2022, segregated by class:

As of December 31, 2022 (Dollars are in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans
Real estate secured:
Commercial	$	268	$	—	$	—	$	268	$	196,801	$	197,069
Construction and land development		89		—		—		89		42,381		42,470
Residential 1-4 family		3,521		543		341		4,405		222,827		227,232
Multifamily		229		—		—		229		29,481		29,710
Farmland		285		—		—		285		17,459		17,744
Total real estate loans		4,392		543		341		5,276		508,949		514,225
Commercial		56		—		—		56		46,641		46,697
Agriculture		—		—		—		—		3,756		3,756
Consumer installment Loans		73		17		17		107		19,202		19,309
All other loans		59		—		—		59		567		626
Total loans	$	4,580	$	560	$	358	$	5,498	$	579,115	$	584,613

Summary of risk category of loans receivable

As of June 30, 2023
Dollars are in thousands	2023			2022			2021			2020		2019		Prior			Revolving		Total
Commercial real estate
Pass	$	17,674		$	43,891		$	47,305		$	30,822	$	21,812	$	46,866		$	1,042	$	209,412
Special mention		—			—			—			—		—		99			—		99
Substandard		—			—			—			—		—		269			—		269
Total commercial real estate	$	17,674		$	43,891		$	47,305		$	30,822	$	21,812	$	47,234		$	1,042	$	209,780
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Construction and Land Development
Pass	$	4,944		$	19,547		$	9,988		$	4,603	$	1,453	$	2,127		$	71	$	42,733
Special mention		—			—			—			—		436		110			—		546
Substandard		—			—			—			—		—		—			—		—
Total construction and land development	$	4,944		$	19,547		$	9,988		$	4,603	$	1,889	$	2,237		$	71	$	43,279
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Residential 1-4 family
Pass	$	13,532		$	33,923		$	44,183		$	14,297	$	14,548	$	88,856		$	19,901	$	229,240
Special mention		—			—			—			—		—		313			—		313
Substandard		—			—			202			—		40		1,762			69		2,073
Total residential 1-4 family	$	13,532		$	33,923		$	44,385		$	14,297	$	14,588	$	90,931		$	19,970	$	231,626
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Multifamily
Pass	$	4,178		$	12,021		$	8,273		$	2,689	$	1,106	$	5,674		$	—	$	33,941
Special mention		—			—			—			—		—		—			—		—
Substandard		—			—			—			—		—		199			—		199
Total multifamily	$	4,178		$	12,021		$	8,273		$	2,689	$	1,106	$	5,873		$	—	$	34,140
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Farmland
Pass	$	1,311		$	2,270		$	3,602		$	806	$	1,233	$	8,209		$	—	$	17,431
Special mention		—			—			—			—		1		196			—		197
Substandard		—			—			—			—		—		—			—		—
Total farmland	$	1,311		$	2,270		$	3,602		$	806	$	1,234	$	8,405		$	—	$	17,628
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Commercial
Pass	$	8,684		$	12,819		$	6,736		$	1,972	$	2,621	$	7,218		$	7,667	$	47,717
Special mention		—			—			—			—		—		3			—		3
Substandard		—			—			—			—		—		—			—		—
Total commercial	$	8,684		$	12,819		$	6,736		$	1,972	$	2,621	$	7,221		$	7,667	$	47,720
Current period gross charge-offs	$	—		$	(5	)	$	—		$	—	$	—	$	—		$	—	$	(5	)
Agriculture
Pass	$	274		$	639		$	425		$	209	$	112	$	814		$	1,134	$	3,607
Special mention		—			—			—			—		—		—			—		—
Substandard		—			—			—			—		—		—			—		—
Total agriculture	$	274		$	639		$	425		$	209	$	112	$	814		$	1,134	$	3,607
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Consumer and All Other
Pass	$	5,555		$	6,869		$	3,293		$	1,242	$	857	$	1,359		$	2,058	$	21,233
Special mention		—			2			—			—		—		—			—		2
Substandard		—			4			—			—		—		19			—		23
Total consumer and all other	$	5,555		$	6,875		$	3,293		$	1,242	$	857	$	1,378		$	2,058	$	21,258
Current period gross charge-offs	$	(97	)	$	(34	)	$	(5	)	$	—	$	—	$	(37	)	$	—	$	(173	)
Total	$	56,152		$	131,985		$	124,007		$	56,640	$	44,219	$	164,093		$	31,942	$	609,038
Total current period gross charge-offs	$	(97	)	$	(39	)	$	(5	)	$	—	$	—	$	(37	)	$	—	$	(178	)

The following table presents the credit risk grade of loans as of December 31, 2022, prior to the adoption of ASU 2016-13, under the incurred loss model:

As of December 31, 2022 (Dollars are in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Real estate secured:
Commercial	$	195,376	$	1,425	$	268	$	—	$	197,069
Construction and land development		41,882		117		471		—		42,470
Residential 1-4 family		224,228		406		2,598		—		227,232
Multifamily		29,503		207		—		—		29,710
Farmland		16,848		855		41		—		17,744
Total real estate loans		507,837		3,010		3,378		—		514,225
Commercial		46,471		226		—		—		46,697
Agriculture		3,756		—		—		—		3,756
Consumer installment loans		19,272		2		35		—		19,309
All other loans		626		—		—		—		626
Total	$	577,962	$	3,238	$	3,413	$	—	$	584,613