LOANS (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Loans receivable outstanding

(Dollars in thousands)	September 30, 2023		December 31, 2022
Real estate secured:
Commercial	$	222,119	$	197,069
Construction and land development		42,278		42,470
Residential 1-4 family		235,584		227,232
Multifamily		34,072		29,710
Farmland		17,599		17,744
Total real estate loans		551,652		514,225
Commercial		48,943		46,697
Agriculture		3,180		3,756
Consumer installment loans		21,871		19,309
All other loans		557		626
Total loans	$	626,203	$	584,613

Summary of loans receivable on nonaccrual status

				CECL						Incurred Loss
				September 30, 2023						December 31, 2022
(Dollars in thousands)				With No Allowance		With an Allowance		Total
Real estate secured:
	Commercial		$	-	$	268	$	268	$	-
	Construction and land development			-		-		-		471
	Residential 1-4 family			2,342		-		2,342		2,597
	Multifamily			199		-		199		268
	Farmland			-		-		-		41
		Total real estate loans		2,541		268		2,809		3,377
Commercial				-		-		-		-
Consumer installment loans and other loans				3		-		3		36
Total loans receivable on nonaccrual status			$	2,544	$	268	$	2,812	$	3,413

Schedule of summary of impaired loans

As of December 31, 2022 (Dollars 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 September 30, 2023:

As of September 30, 2023 (Dollars in thousands)	Unpaid Principal Balance		Related Allowance
Real estate secured:
Commercial	$	268	$	64
Construction and land development		—		—
Residential 1-4 family		—		—
Multifamily		—		—
Farmland		—		—
Total real estate secured		268		64
Commercial		—		—
Agriculture		77		51
Consumer installment loans		—		—
Total	$	345	$	115

Summary age analysis of past due loans receivable

September 30, 2023 (Dollars 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	$	306	$	—	$	268	$	574	$	221,545	$	222,119
Construction and land development		5		—		—		5		42,273		42,278
Residential 1-4 family		1,769		624		556		2,949		232,635		235,584
Multifamily		—		—		199		199		33,873		34,072
Farmland		345		—		—		345		17,254		17,599
Total real estate loans		2,425		624		1,023		4,072		547,580		551,652
Commercial		157		—		—		157		48,786		48,943
Agriculture		124		—		—		124		3,056		3,180
Consumer installment loans		92		7		2		101		21,770		21,871
All other loans		—		—		—		—		557		557
Total loans	$	2,798	$	631	$	1,025	$	4,454	$	621,749	$	626,203

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

December 31, 2022 (Dollars 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 September 30, 2023
(Dollars are in thousands)	2023			2022			2021			2020		2019		Prior			Revolving		Total
Commercial real estate
Pass	$	31,740		$	46,199		$	45,916		$	30,444	$	21,379	$	45,068		$	1,008	$	221,754
Special mention		—			—			—			—		—		96			—		96
Substandard		—			—			—			—		—		269			—		269
Total commercial real estate	$	31,740		$	46,199		$	45,916		$	30,444	$	21,379	$	45,433		$	1,008	$	222,119
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Construction and Land Development
Pass	$	9,626		$	14,121		$	10,137		$	4,535	$	1,853	$	1,839		$	61	$	42,172
Special mention		—			—			—			—		—		106			—		106
Substandard		—			—			—			—		—		—			—		—
Total construction and land development	$	9,626		$	14,121		$	10,137		$	4,535	$	1,853	$	1,945		$	61	$	42,278
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Residential 1-4 family
Pass	$	21,278		$	35,304		$	42,333		$	13,941	$	14,261	$	84,352		$	21,598	$	233,067
Special mention		—			—			—			—		—		171			—		171
Substandard		87			—			104			—		39		2,086			30		2,346
Total residential 1-4 family	$	21,365		$	35,304		$	42,437		$	13,941	$	14,300	$	86,609		$	21,628	$	235,584
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	(6	)	$	—	$	(6	)
Multifamily
Pass	$	4,815		$	11,699		$	8,053		$	2,657	$	1,093	$	5,556		$	—	$	33,873
Special mention		—			—			—			—		—		—			—		—
Substandard		—			—			—			—		—		199			—		199
Total multifamily	$	4,815		$	11,699		$	8,053		$	2,657	$	1,093	$	5,755		$	—	$	34,072
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Farmland
Pass	$	1,770		$	2,236		$	3,444		$	797	$	1,218	$	7,944		$	—	$	17,409
Special mention		—			—			—			—		1		189			—		190
Substandard		—			—			—			—		—		—			—		—
Total farmland	$	1,770		$	2,236		$	3,444		$	797	$	1,219	$	8,133		$	—	$	17,599
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	—
Commercial
Pass	$	13,321		$	11,212		$	6,173		$	1,746	$	2,285	$	3,256		$	10,947	$	48,940
Special mention		—			—			—			—		—		3			—		3
Substandard		—			—			—			—		—		—			—		—
Total commercial	$	13,321		$	11,212		$	6,173		$	1,746	$	2,285	$	3,259		$	10,947	$	48,943
Current period gross charge-offs	$	—		$	(5	)	$	—		$	—	$	—	$	—		$	—	$	(5	)
Agriculture
Pass	$	491		$	562		$	475		$	148	$	94	$	648		$	762	$	3,180
Special mention		—			—			—			—		—		—			—		—
Substandard		—			—			—			—		—		—			—		—
Total agriculture	$	491		$	562		$	475		$	148	$	94	$	648		$	762	$	3,180
Current period gross charge-offs	$	—		$	—		$	—		$	—	$	—	$	(59	)	$	—	$	(59	)
Consumer and All Other
Pass	$	9,076		$	5,708		$	2,815		$	1,081	$	721	$	1,251		$	1,774	$	22,426
Special mention		—			1			—			—		—		—			—		1
Substandard		—			—			1			—		—		—			—		1
Total consumer and all other	$	9,076		$	5,709		$	2,816		$	1,081	$	721	$	1,251		$	1,774	$	22,428
Current period gross charge-offs	$	(140	)	$	(47	)	$	(11	)	$	—	$	—	$	(46	)	$	—	$	(244	)
Total	$	92,204		$	127,042		$	119,451		$	55,349	$	42,944	$	153,033		$	36,180	$	626,203
Total current period gross charge-offs	$	(140	)	$	(52	)	$	(11	)	$	—	$	—	$	(111	)	$	—	$	(314	)

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 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