LOANS

6 Months Ended

Jun. 30, 2020

LOANS

LOANS

NOTE F - LOANS

Following is a summary of the composition of the Company’s loan portfolio at June 30, 2020 and December 31, 2019:

	June 30,					December 31,
	2020					2019
			Percent					Percent
	Amount		of total			Amount			of total
	(dollars in thousands)
Real estate loans:
1-to-4 family residential	$	197,395		14.81	%	$	151,697		14.73	%
Commercial real estate		516,112		44.67	%		459,115		44.58	%
Multi-family residential		77,877		6.80	%		69,124		6.71	%
Construction		245,937		21.99	%		221,878		21.55	%
Home equity lines of credit (“HELOC”)		49,271		4.22	%		44,514		4.32	%
Total real estate loans		1,086,592		92.49	%		946,328		91.89	%
Other loans:
Commercial and industrial		161,643		6.95	%		75,748		7.35	%
Loans to individuals		7,469		0.75	%		9,779		0.95	%
Overdrafts		71		0.02	%		234		0.02	%
Total other loans		169,183		7.72	%		85,761		8.32	%
Gross loans		1,255,775					1,032,089
Less deferred loan origination fees, net		(5,776)		(0.21)	%		(2,114)		(0.21)	%
Total loans		1,249,999		100.00	%		1,029,975		100.00	%
Allowance for loan losses		(12,054)					(8,324)
Total loans, net	$	1,237,945				$	1,021,651

For Purchased Credit Impaired, or PCI loans, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as of June 30, 2020 and December 31, 2019 were:

	June 30, 2020		December 31, 2019
Contractually required payments	$	40,025	$	20,598
Nonaccretable difference		3,421		1,694
Cash flows expected to be collected		36,604		18,904
Accretable yield		5,661		3,191
Carrying value	$	30,943	$	15,713

Loans are primarily secured by real estate located in the State of North Carolina, southeastern Virginia and northwestern South Carolina. Real estate loans can be affected by the condition of the local real estate market and by local economic conditions.

At June 30, 2020, the Company had pre-approved but unused lines of credit for customers totaling $290.6 million. In management’s opinion, these commitments, and undisbursed proceeds on loans reflected above, represent no more than normal lending risk to the Company and will be funded from normal sources of liquidity.

The Bank had originated 1,230 loans amounting to $96.5 million under the Paycheck Protection Program (“PPP”) which are classified as Commercial and industrial loans in the loan portfolio.  The PPP loan program is sponsored by the Small Business Administration (SBA) to primarily facilitate the continuation of paychecks to employees of businesses impacted by the COVID-19 pandemic.  These loans are guaranteed by the SBA and can be forgiven and paid off by the SBA if all conditions of the program are met.  Loans that do not meet the conditions of the PPP loan program could result in the Bank incurring a charge-off.  The extent of this potential loss to the Bank is not known since the conditions of the program have changed and are subject to future changes.

A floating lien of $105.6 million of loans was pledged to the FHLB to secure borrowings at June 30, 2020.

The following tables present an age analysis of past due loans, segregated by class of loans as of June 30, 2020 and December 31, 2019, respectively:

	June 30, 2020
	30-59		60-89		90+		Non-		Total
	Days		Days		Days		Accrual		Past		Total
	Past Due		Past Due		Accruing		Loans		Due		Current		Loans
	(dollars in thousands)
Commercial and industrial	$	586	$	—	$	—	$	3,126	$	3,712	$	157,931	$	161,643
Construction		146		—		—		169		315		245,622		245,937
Multi-family residential		—		—		—		—		—		77,877		77,877
Commercial real estate		371		—		332		3,110		3,813		512,299		516,112
Loans to individuals & overdrafts		11		9		—		145		165		7,375		7,540
1‑to‑4 family residential		97		55		994		971		2,117		195,278		197,395
HELOC		94		—		—		458		552		48,719		49,271
Deferred loan (fees) cost, net		—		—		—		—		—		—		(5,776)
	$	1,305	$	64	$	1,326	$	7,979	$	10,674	$	1,245,101	$	1,249,999

	December 31, 2019
	30-59		60-89		90+		Non-		Total
	Days		Days		Days		Accrual		Past				Total
	Past Due		Past Due		Accruing		Loans		Due		Current		Loans
	(dollars in thousands)
Total loans
Commercial and industrial	$	1,108	$	34	$	46	$	2,824	$	4,012	$	71,736	$	75,748
Construction		—		—		—		181		181		221,697		221,878
Multi-family residential		—		—		—		—		—		69,124		69,124
Commercial real estate		393		82		321		1,832		2,628		456,487		459,115
Loans to individuals & overdrafts		5		—		—		155		160		9,853		10,013
1‑to‑4 family residential		859		810		864		505		3,038		148,659		151,697
HELOC		168		—		—		444		612		43,902		44,514
Deferred loan (fees) cost, net		—		—		—		—		—		—		(2,114)
	$	2,533	$	926	$	1,231	$	5,941	$	10,631	$	1,021,458	$	1,029,975

Impaired Loans

The following tables present information on loans that were considered to be impaired as of June 30, 2020 and December 31, 2019:

	As of June 30, 2020						Three Months Ended				Six Months Ended
			Contractual				June 30, 2020				June 30, 2020
			Unpaid		Related		Average		Interest Income		Average		Interest Income
	Recorded		Principal		Allowance		Recorded		Recognized on		Recorded		Recognized on
	Investment		Balance		for Loan Losses		Investment		Impaired Loans		Investment		Impaired Loans
	(dollars in thousands)
2020 :
With no related allowance recorded:
Commercial and industrial	$	3,394	$	3,893	$	—	$	3,667	$	71	$	2,951	$	108
Construction		428		529		—		432		6		434		11
Commercial real estate		5,794		6,104		—		5,679		38		5,690		88
Loans to individuals & overdrafts		262		280		—		259		3		273		13
Multi-family residential		—		—		—		—		—		99		21
HELOC		546		677		—		671		10		610		20
1‑to‑4 family residential		90		186		—		109		18		86		—
Subtotal:		10,514		11,669		—		10,817		146		10,143		261
With an allowance recorded:
Commercial and industrial		649		649		344		649		11		649		19
Construction		—		—		—		—		—		—		—
Commercial real estate		556		572		392		278		16		278		31
Loans to individuals & overdrafts		—		—		—		—		—		—		—
Multi-family Residential		—		—		—		—		—		—		—
HELOC		—		—		—		—		—		—		—
1‑to‑4 family residential		241		255		4		246		14		283		22
Subtotal:		1,446		1,476		740		1,173		41		1,210		72
Totals:
Commercial		10,821		11,747		736		10,705		142		10,101		257
Consumer		262		280		—		259		3		273		13
Residential		877		1,118		4		1,026		42		979		63
Grand Total:	$	11,960	$	13,145	$	740	$	11,990	$	187	$	11,353	$	333

Impaired loans at June 30, 2020 were approximately $12.0 million and were composed of $8.0 million in non-accrual loans and $4.0 million in loans that were still accruing interest. Recorded investment represents the current principal balance of the loan. Approximately $1.5 million in impaired loans had specific allowances provided for them while the

remaining $10.5 million had no specific allowances recorded at June 30, 2020. Of the $10.5 million with no allowance recorded, $373,000 of those loans have had partial charge-offs recorded.

	As of December 31, 2019						Three Months Ended				Six Months Ended
			Contractual				June 30, 2019				June 30, 2019
			Unpaid		Related		Average		Interest Income		Average		Interest Income
	Recorded		Principal		Allowance		Recorded		Recognized on		Recorded		Recognized on
	Investment		Balance		for Loan Losses		Investment		Impaired Loans		Investment		Impaired Loans
	(dollars in thousands)
2019 :
With no related allowance recorded:
Commercial and industrial	$	2,796	$	4,051	$	—	$	3,298	$	54	$	4,189	$	64
Construction		440		537		—		1,419		3		1,428		8
Commercial real estate		5,585		6,750		—		7,988		82		6,823		148
Loans to individuals & overdrafts		197		197		—		99		5		92		6
Multi-family residential		284		293		—		209		4		211		7
HELOC		543		678		—		625		23		658		39
1‑to‑4 family residential		395		1,816		—		874		11		952		26
Subtotal:		10,240		14,322		—		14,512		182		14,353		298
With an allowance recorded:
Commercial and industrial		731		1,056		403		964		37		635		43
Construction		—		—		—		—		—		13		—
Commercial real estate		—		—		—		—		—		—		—
Loans to individuals & overdrafts		—		—		—		10		—		77		—
Multi-family Residential		—		—		—		—		—		—		—
HELOC		160		222		—		517		9		91		7
1‑to‑4 family residential		81		94		10		262		1		213		10
Subtotal:		972		1,372		413		1,753		47		1,029		60
Totals:
Commercial		9,749		12,591		403		13,878		180		13,299		270
Consumer		284		293		—		109		5		169		6
Residential		1,179		2,810		10		2,278		44		1,914		82
Grand Total:	$	11,212	$	15,694	$	413	$	16,265	$	229	$	15,382	$	358

Impaired loans at December 31, 2019 were approximately $11.2 million and included $5.9 million in non-accrual loans and $6.2 million in loans still in accruing status. Recorded investment represents the current principal balance for the loan. Approximately $972,000 of the $11.2 million in impaired loans at December 31, 2019 had specific allowances aggregating $413,000 while the remaining $10.2 million had no specific allowances recorded. Of the $10.2 million with no allowance recorded, partial charge-offs through December 31, 2019 amounted to $4.1 million.

Loans are placed on non-accrual status when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest.

Troubled Debt Restructurings

The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30, 2020					Six Months Ended June 30, 2020
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding		Number	Outstanding		Outstanding
	of	Recorded		Recorded		of	Recorded		Recorded
	loans	Investments		Investments		loans	Investments		Investments
	(dollars in thousands)					(dollars in thousands)
Extended payment terms:
1-to-4 family residential	2	$	139	$	92	5	$	632	$	384
Commercial real estate	—		—		—	—		—		—
Construction	1		157		138	2		417		396
HELOC	1		190		185	2		240		235
Commercial & industrial	—		—		—	6		2,665		2,539
Total	4	$	486	$	415	15	$	3,954	$	3,554

	Three Months Ended June 30, 2019					Six Months Ended June 30, 2019
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding		Number	Outstanding		Outstanding
	of	Recorded		Recorded		of	Recorded		Recorded
	loans	Investments		Investments		loans	Investments		Investments
	(dollars in thousands)					(dollars in thousands)
Extended payment terms:
Commercial and industrial	1	$	35	$	18	2	$	59	$	40
Commercial real estate	—		—		—	1		752		752
1‑to‑4 family residential	2		747		747	3		828		827
Total	3	$	782	$	765	6	$	1,639	$	1,619

The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default during that period together with concessions made by loan class during the twelve month periods ended June 30, 2020 and 2019:

	Twelve months ended			Twelve months ended
	June 30, 2020			June 30, 2019
	Number	Recorded		Number	Recorded
	of loans	investment		of loans	investment
	(dollars in thousands)			(dollars in thousands)
Extended payment terms:
Commercial and industrial	2	$	1,510	3	$	827
Commercial real estate	—		—	2		1,058
Construction	1		138	—		—
HELOC	1		186	—		—
1-to-4 family residential	2		92	2		40
Total	6	$	1,926	7	$	1,925

At June 30, 2020, the Bank had forty-nine loans with an aggregate balance of $10.3 million that were considered to be troubled debt restructurings. Of those TDRs, thirty-two loans with a balance totaling $6.4 million were still accruing as of June 30, 2020. The remaining TDRs with balances totaling $3.9 million as of June 30, 2020 were in non-accrual status. In

response to the impact of COVID-19 payment deferrals were granted on 491 loans totaling $240.2 million through June 30, 2020.  The Bank has chosen to apply the CARES Act election for the accounting of TDRs. As permitted by applicable regulatory guidance, these 491 loans were not classified as TDRs at June 30, 2020.

At June 30, 2019, the Bank had thirty-nine loans with an aggregate balance of $7.8 million that were considered to be troubled debt restructurings. Of those TDRs, twenty-four loans with a balance totaling $5.3 million were still accruing as of June 30, 2019. The remaining TDRs with balances totaling $1.8 million as of June 30, 2019 were in non-accrual status.

The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of June 30, 2020 and December 31, 2019, respectively:

Total loans:

June 30, 2020
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
	(dollars in thousands)
Superior	$	96,774	$	—	$	212	$	—
Very good		163		193		1,624		—
Good		4,463		3,299		71,967		6,632
Acceptable		18,612		26,854		276,479		43,569
Acceptable with care		35,426		214,840		156,928		27,676
Special mention		394		582		2,089		—
Substandard		5,811		169		6,813		—
Doubtful		—		—		—		—
Loss		—		—		—		—
	$	161,643	$	245,937	$	516,112	$	77,877

Consumer Credit
Exposure By
Internally	1‑to‑4 family
Assigned Grade	residential		HELOC
Pass	$	194,067	$	48,173
Special mention		1,165		222
Substandard		2,163		876
	$	197,395	$	49,271

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts
Pass	$	7,268
Special mention		272
	$	7,540

Total Loans:

December 31, 2019
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
	(dollars in thousands)
Superior	$	4,014	$	—	$	337	$	—
Very good		349		110		1,245		—
Good		5,976		8,674		62,643		4,839
Acceptable		19,197		16,249		255,751		41,113
Acceptable with care		40,579		196,228		133,190		23,172
Special mention		242		436		1,490		—
Substandard		5,391		181		4,459		—
Doubtful		—		—		—		—
Loss		—		—		—		—
	$	75,748	$	221,878	$	459,115	$	69,124

Consumer Credit
Exposure By
Internally		1‑to‑4 family
Assigned Grade	residential		HELOC
Pass	$	147,958	$	43,585
Special mention		1,246		76
Substandard		2,493		853
	$	151,697	$	44,514

Consumer Credit
Exposure Based	Loans to
On Payment		individuals &
Activity	overdrafts
Pass	$	9,727
Special mention		286
	$	10,013

Determining the fair value of PCI loans at acquisition required the Company to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of cash flows expected to be collected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and is called the nonaccretable difference. In accordance with GAAP, there was no carry-over of previously established allowance for credit losses from the acquired company.

The following table documents changes to the amount of the accretable yield on PCI loans for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(dollars in thousands)				(dollars in thousands)
Accretable yield, beginning of period	$	2,986	$	3,721	$	3,191	$	3,593
Additions		2,949		—		2,949		—
Accretion		(442)		(290)		(722)		(578)
Reclassification from nonaccretable difference		11		131		43		248
Other changes, net		157		(81)		200		218
Accretable yield, end of period	$	5,661	$	3,481	$	5,661	$	3,481

The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three and six month periods ended June 30, 2020 and June 30, 2019, respectively (dollars in thousands):

	Three Months Ended June 30, 2020
	Commercial						1 to 4				Loans to		Multi-
	and				Commercial		family				individuals &		family
2020	industrial		Construction		real estate		residential		HELOC		overdrafts		residential		Total
Allowance for loan losses
Loans – excluding PCI
Balance, beginning of period 04/01/2020	$	1,834	$	2,125	$	3,558	$	1,714	$	398	$	143	$	546	$	10,318
Provision for (recovery of) loan losses		1,306		159		625		(49)		(51)		(39)		75		2,026
Loans charged-off		(519)		—		—		—		—		(3)		—		(522)
Recoveries		2		—		1		6		41		7		—		57
Balance, end of period 6/30/2020	$	2,623	$	2,284	$	4,184	$	1,671	$	388	$	108	$	621	$	11,879
																—
PCI Loans																—
Balance, beginning of period 04/01/2020	$	199	$	7	$	14	$	43	$	—	$	—	$	5	$	268
Provision for (recovery of) loan losses		(176)		4		30		32		9		4		4		(93)
Loans charged-off		—		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—		—		—
Balance, end of period 6/30/2020	$	23	$	11	$	44	$	75	$	9	$	4	$	9	$	175
																—
Total Loans																—
Balance, beginning of period 04/01/2020	$	2,033	$	2,132	$	3,572	$	1,757	$	398	$	143	$	551	$	10,586
Provision for (recovery of) loan losses		1,130		163		655		(17)		(42)		(35)		79		1,933
Loans charged-off		(519)		—		—		—		—		(3)		—		(522)
Recoveries		2		—		1		6		41		7		—		57
Balance, end of period 6/30/2020	$	2,646	$	2,295	$	4,228	$	1,746	$	397	$	112	$	630	$	12,054
																—
Ending Balance: individually evaluated for impairment	$	344	$	—	$	392	$	4	$	—	$	—	$	—	$	740
Ending Balance: collectively evaluated for impairment	$	2,302	$	2,295	$	3,836	$	1,742	$	397	$	112	$	630	$	11,314
																—
Loans:																—
Ending Balance: collectively evaluated for impairment non PCI loans	$	155,443	$	243,887	$	497,112	$	184,805	$	48,034	$	7,128	$	76,463	$	1,212,872
Ending Balance: collectively evaluated for impairment PCI loans	$	1,659	$	1,622	$	13,148	$	12,259	$	691	$	150	$	1,414	$	30,943
Ending Balance: individually evaluated for impairment	$	4,541	$	428	$	5,852	$	331	$	546	$	262	$	—	$	11,960
Ending Balance	$	161,643	$	245,937	$	516,112	$	197,395	$	49,271	$	7,540	$	77,877	$	1,255,775

	Six Months Ended June 30, 2020
	Commercial						1 to 4				Loans to		Multi-
	and				Commercial		family				individuals &		family
2020	industrial		Construction		real estate		residential		HELOC		overdrafts		residential		Total
Allowance for loan losses
Loans – excluding PCI
Balance, beginning of period 01/01/2020	$	1,127	$	1,731	$	2,837	$	1,437	$	329	$	175	$	419	$	8,055
Provision for (recovery of) loan losses		2,023		553		1,345		218		18		(59)		202		4,300
Loans charged-off		(530)		—		—		—		—		(19)		—		(549)
Recoveries		3		—		2		16		41		11		—		73
Balance, end of period 6/30/2020	$	2,623	$	2,284	$	4,184	$	1,671	$	388	$	108	$	621	$	11,879
PCI Loans																—
Balance, beginning of period 01/01/2020	$	178	$	6	$	14	$	56	$	—	$	—	$	15	$	269
Provision for (recovery of) loan losses		(155)		5		30		19		9		4		(6)		(94)
Loans charged-off		—		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—		—		—
Balance, end of period 6/30/2020	$	23	$	11	$	44	$	75	$	9	$	4	$	9	$	175
Total Loans																—
Balance, beginning of period 01/01/2020	$	1,305	$	1,737	$	2,851	$	1,493	$	329	$	175	$	434	$	8,324
Provision for (recovery of) loan losses		1,868		558		1,375		237		27		(55)		196		4,206
Loans charged-off		(530)		—		—		—		—		(19)		—		(549)
Recoveries		3		—		2		16		41		11		—		73
Balance, end of period 6/30/2020	$	2,646	$	2,295	$	4,228	$	1,746	$	397	$	112	$	630	$	12,054

	Three Months Ended June 30, 2019
	Commercial						1 to 4				Loans to		Multi-
	and				Commercial		family				individuals &		family
2019	industrial		Construction		real estate		residential		HELOC		overdrafts		residential		Total
Allowance for loan losses
Loans – excluding PCI
Balance, beginning of period 04/01/2019	$	730	$	1,572	$	3,395	$	1,211	$	439	$	177	$	408	$	7,932
Provision for (recovery of) loan losses		85		(102)		(601)		324		44		129		(25)		(146)
Loans charged-off		(6)		—		(10)		—		(51)		(5)		—		(72)
Recoveries		5		17		34		8		—		8		—		72
Balance, end of period 6/30/2019	$	814	$	1,487	$	2,818	$	1,543	$	432	$	309	$	383	$	7,786
PCI Loans
Balance, beginning of period 04/01/2019	$	46	$	23	$	233	$	246	$	2	$	—	$	28	$	578
Provision for (recovery of) loan losses		252		(17)		(91)		(184)		(1)		—		(20)		(61)
Loans charged-off		—		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—		—		—
Balance, end of period 6/30/2019	$	298	$	6	$	142	$	62	$	1	$	—	$	8	$	517
Total Loans
Balance, beginning of period 04/01/2019	$	776	$	1,595	$	3,628	$	1,457	$	441	$	177	$	436	$	8,510
Provision for (recovery of) loan losses		337		(119)		(692)		140		43		129		(45)		(207)
Loans charged-off		(6)		—		(10)		—		(51)		(5)		—		(72)
Recoveries		5		17		34		8		—		8		—		72
Balance, end of period 6/30/2019	$	1,112	$	1,493	$	2,960	$	1,605	$	433	$	309	$	391	$	8,303
Ending Balance: individually evaluated for impairment	$	254	$	—	$	—	$	6	$	52	$	12	$	—	$	324
Ending Balance: collectively evaluated for impairment	$	858	$	1,493	$	2,960	$	1,599	$	381	$	297	$	391	$	7,979
Loans:
Ending Balance: collectively evaluated for impairment non PCI loans	$	73,377	$	187,906	$	434,939	$	153,461	$	46,725	$	10,200	$	59,541	$	966,149
Ending Balance: collectively evaluated for impairment PCI loans	$	1,426	$	687	$	6,302	$	7,556	$	47	$	—	$	918	$	16,936
Ending Balance: individually evaluated for impairment	$	3,557	$	2,295	$	7,968	$	653	$	1,014	$	95	$	206	$	15,788
Ending Balance	$	78,360	$	190,888	$	449,209	$	161,670	$	47,786	$	10,295	$	60,665	$	998,873

	Six Months Ended June 30, 2019
	Commercial						1 to 4				Loans to		Multi-
	and				Commercial		family				individuals &		family
2020	industrial		Construction		real estate		residential		HELOC		overdrafts		residential		Total
Allowance for loan losses
Loans – excluding PCI
Balance, beginning of period 01/01/2019	$	762	$	1,385	$	3,024	$	1,663	$	555	$	206	$	471	$	8,066
Provision for (recovery of) loan losses		299		84		(245)		(137)		(36)		114		(88)		(9)
Loans charged-off		(257)		—		(10)		—		(100)		(24)		—		(391)
Recoveries		10		18		49		17		13		13		—		120
Balance, end of period 6/30/2019	$	814	$	1,487	$	2,818	$	1,543	$	432	$	309	$	383	$	7,786
PCI Loans
Balance, beginning of period 01/01/2019	$	214	$	—	$	385	$	4	$	—	$	—	$	—	$	603
Provision for (recovery of) loan losses		84		6		(243)		58		1		—		8		(86)
Loans charged-off		—		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—		—		—
Balance, end of period 6/30/2019	$	298	$	6	$	142	$	62	$	1	$	—	$	8	$	517
Total Loans																—
Balance, beginning of period 01/01/2019	$	976	$	1,385	$	3,409	$	1,667	$	555	$	206	$	471	$	8,669
Provision for (recovery of) loan losses		383		90		(488)		(79)		(35)		114		(80)		(95)
Loans charged-off		(257)		—		(10)		—		(100)		(24)		—		(391)
Recoveries		10		18		49		17		13		13		—		120
Balance, end of period 6/30/2019	$	1,112	$	1,493	$	2,960	$	1,605	$	433	$	309	$	391	$	8,303