Loans (Tables)

12 Months Ended

Dec. 31, 2021

Loans

Schedule of composition of loan portfolio (excluding mortgage loans held for sale)

Loans classified by type as of December 31, 2021 and 2020 are as follows (dollars in thousands):

	December 31, 2021				December 31, 2020
	Amount		%		Amount		%
Construction and land development
Residential	$	6,805	1.29	%	$	8,103	1.44	%
Commercial		42,344	8.05	%		21,466	3.82	%
		49,149	9.34	%		29,569	5.26	%
Commercial real estate
Owner occupied		113,108	21.48	%		99,784	17.79	%
Non-owner occupied		129,786	24.65	%		121,184	21.60	%
Multifamily		11,666	2.22	%		9,889	1.75	%
Farmland		977	0.19	%		367	0.07	%
		255,537	48.54	%		231,224	41.21	%
Consumer real estate
Home equity lines		17,977	3.41	%		18,394	3.28	%
Secured by 1-4 family residential,
First deed of trust		62,277	11.83	%		57,089	10.18	%
Second deed of trust		12,118	2.31	%		11,097	1.98	%
		92,372	17.55	%		86,580	15.44	%
Commercial and industrial loans
(except those secured by real estate)		100,421	19.07	%		181,088	32.28	%
Guaranteed student loans		25,975	4.93	%		29,657	5.29	%
Consumer and other		3,003	0.57	%		2,885	0.51	%
Total loans		526,457	100.0	%		561,003	100.0	%
Deferred fees and costs, net		(433)				(2,048)
Less: allowance for loan losses		(3,423)				(3,970)
	$	522,601			$	554,985

Summary of loans directly or indirectly with executive officers or directors of the Company

The following is a summary of loans directly or indirectly with executive officers or directors of the Company for the years ended December 31, 2021 and 2020 (in thousands):

	2021		2020
Beginning balance	$	4,672	$	5,323
Additions		8,760		11,228
Effect of changes in composition of related parties		(324)		(287)
Reductions		(7,186)		(11,592)
Ending balance	$	5,922	$	4,672

Schedule of information on nonaccrual loans

The following table provides information on nonaccrual loans segregated by type at the dates indicated (dollars in thousands):

	December 31,		December 31,
	2021		2020
Commercial real estate
Non-owner occupied	$	286	$	303
		286		303
Consumer real estate
Home equity lines		300		300
Secured by 1-4 family residential
First deed of trust		556		630
Second deed of trust		198		317
		1,054		1,247
Commercial and industrial loans
(except those secured by real estate)		19		27
Total loans	$	1,359	$	1,577

Schedule of information on the risk rating of loans

The following tables provide information on the risk rating of loans at the dates indicated (in thousands):

	Risk Rated		Risk Rated		Risk Rated		Risk Rated		Total
	1‑4		5		6		7		Loans
December 31, 2021
Construction and land development
Residential	$	6,805	$	—	$	—	$	—	$	6,805
Commercial		39,707		2,637		—		—		42,344
		46,512		2,637		—		—		49,149
Commercial real estate
Owner occupied		103,370		6,181		3,557		—		113,108
Non-owner occupied		114,168		15,332		286		—		129,786
Multifamily		11,666		—		—		—		11,666
Farmland		977		—		—		—		977
		230,181		21,513		3,843		—		255,537
Consumer real estate
Home equity lines		17,054		623		300		—		17,977
Secured by 1-4 family residential
First deed of trust		57,932		3,605		740		—		62,277
Second deed of trust		11,492		429		197		—		12,118
		86,478		4,657		1,237		—		92,372
Commercial and industrial loans
(except those secured by real estate)		98,362		1,806		253		—		100,421
Guaranteed student loans		25,975		—		—		—		25,975
Consumer and other		2,972		31		—		—		3,003
Total loans	$	490,480	$	30,644	$	5,333	$	—	$	526,457

	Risk Rated		Risk Rated		Risk Rated		Risk Rated		Total
	1‑4		5		6		7		Loans
December 31, 2020
Construction and land development
Residential	$	8,103	$	—	$	—	$	—	$	8,103
Commercial		21,370		96		—		—		21,466
		29,473		96		—		—		29,569
Commercial real estate
Owner occupied		88,066		9,405		2,313		—		99,784
Non-owner occupied		116,161		4,244		779		—		121,184
Multifamily		9,889		—		—		—		9,889
Farmland		367		—		—		—		367
		214,483		13,649		3,092		—		231,224
Consumer real estate
Home equity lines		17,298		796		300		—		18,394
Secured by 1-4 family residential
First deed of trust		53,731		2,212		1,146		—		57,089
Second deed of trust		9,425		1,236		436		—		11,097
		80,454		4,244		1,882		—		86,580
Commercial and industrial loans
(except those secured by real estate)		178,217		2,602		269		—		181,088
Guaranteed student loans		29,657		—		—		—		29,657
Consumer and other		2,844		41		—		—		2,885
Total loans	$	535,128	$	20,632	$	5,243	$	—	$	561,003

Schedule of aging of recorded investment in past due loans and leases

The following tables present the aging of the recorded investment in past due loans as of the dates indicated (in thousands):

					Greater								Investment >
	30‑59 Days		60‑89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
December 31, 2021
Construction and land development
Residential	$	—	$	—	$	—	$	—	$	6,805	$	6,805	$	—
Commercial		—		—		—		—		42,344		42,344		—
		—		—		—		—		49,149		49,149		—
Commercial real estate
Owner occupied		—		—		—		—		113,108		113,108		—
Non-owner occupied		—		—		—		—		129,786		129,786		—
Multifamily		—		—		—		—		11,666		11,666		—
Farmland		—		—		—		—		977		977		—
		—		—		—		—		255,537		255,537		—
Consumer real estate
Home equity lines		—		—		—		—		17,977		17,977		—
Secured by 1‑4 family residential
First deed of trust		—		—		—		—		62,277		62,277		—
Second deed of trust		—		—		—		—		12,118		12,118		—
		—		—		—		—		92,372		92,372		—
Commercial and industrial loans
(except those secured by real estate)		1,031		—		—		1,031		99,390		100,421		—
Guaranteed student loans		956		791		1,961		3,708		22,267		25,975		1,961
Consumer and other		—		—		—		—		3,003		3,003		—
Total loans	$	1,987	$	791	$	1,961	$	4,739	$	521,718	$	526,457	$	1,961

													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
December 31, 2020
Construction and land development
Residential	$	—	$	—	$	—	$	—	$	8,103	$	8,103	$	—
Commercial		—		—		—		—		21,466		21,466		—
		—		—		—		—		29,569		29,569		—
Commercial real estate
Owner occupied		86		—		—		86		99,698		99,784		—
Non-owner occupied		—		—		—		—		121,184		121,184		—
Multifamily		—		—		—		—		9,889		9,889		—
Farmland		—		—		—		—		367		367		—
		86		—		—		86		231,138		231,224		—
Consumer real estate
Home equity lines		—		—		—		—		18,394		18,394		—
Secured by 1-4 family residential
First deed of trust		133		—		—		133		56,956		57,089		—
Second deed of trust		—		57		—		57		11,040		11,097		—
		133		57		—		190		86,390		86,580		—
Commercial and industrial loans
(except those secured by real estate)		25		—		—		25		181,063		181,088		—
Guaranteed student loans		1,428		1,009		2,193		4,630		25,027		29,657		2,193
Consumer and other		1		—		—		1		2,884		2,885		—
Total loans	$	1,673	$	1,066	$	2,193	$	4,932	$	556,071	$	561,003	$	2,193

Schedule of impaired loans

	December 31, 2021						December 31, 2020
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded
Commercial real estate
Owner occupied	$	4,776	$	4,791	$	—	$	2,780	$	2,795	$	—
Non-owner occupied		1,458		1,458		—		1,991		1,991		—
		6,234		6,249		—		4,771		4,786		—
Consumer real estate
Home equity lines		300		300		—		300		300		—
Secured by 1‑4 family residential
First deed of trust		1,873		1,873		—		1,937		1,940		—
Second deed of trust		238		406		—		699		992		—
		2,411		2,579		—		2,936		3,232		—
Commercial and industrial loans
(except those secured by real estate)		185		185		—		141		141		—
		8,830		9,013		—		7,848		8,159		—
With an allowance recorded
Commercial real estate
Owner occupied		267		267		4		1,125		1,125		9
		267		267		4		1,125		1,125		9
Consumer real estate
Secured by 1-4 family residential
First deed of trust		146		146		7		74		74		8
		146		146		7		74		74		8
		413		413		11		1,199		1,199		17
Total
Owner occupied		5,043		5,058		4		3,905		3,920		9
Non-owner occupied		1,458		1,458		—		1,991		1,991		—
		6,501		6,516		4		5,896		5,911		9
Consumer real estate
Home equity lines		300		300		—		300		300		—
Secured by 1-4 family residential,
First deed of trust		2,019		2,019		7		2,011		2,014		8
Second deed of trust		238		406		—		699		992		—
		2,557		2,725		7		3,010		3,306		8
Commercial and industrial loans
(except those secured by real estate)		185		185		—		141		141		—
	$	9,243	$	9,426	$	11	$	9,047	$	9,358	$	17

Schedule of average recorded investment in impaired loans

The following is a summary of average recorded investment in impaired loans with and without valuation allowance and interest income recognized on those loans for periods indicated (in thousands):

	December 31,
	2021				2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded
Construction and land development
Commercial	$	—	$	—	$	221	$	—
		—		—		221		—
Commercial real estate
Owner occupied		5,068		159		3,189		124
Non-owner occupied		1,767		86		1,980		89
		6,835		245		5,169		213
Consumer real estate
Home equity lines		300		25		300		23
Secured by 1-4 family residential
First deed of trust		1,924		93		2,069		66
Second deed of trust		574		23		802		46
		2,798		141		3,171		135
Commercial and industrial loans
(except those secured by real estate)		195		1		151		1
		9,828		387		8,712		349
With an allowance recorded
Commercial real estate
Owner occupied		67		19		913		32
		67		19		913		32
Consumer real estate
Secured by 1-4 family residential
First deed of trust		149		4		76		4
Second deed of trust		—		—		26		—
		149		4		102		4
Commercial and industrial loans
(except those secured by real estate)		—		—		129		—
Consumer and other		—		—		—		—
		216		23		1,144		36
Total
Construction and land development
Commercial		—		—		221		—
		—		—		221		—
Commercial real estate
Owner occupied		5,135		178		4,102		156
Non-owner occupied		1,767		86		1,980		89
		6,902		264		6,082		245
Consumer real estate
Home equity lines		300		25		300		23
Secured by 1-4 family residential,
First deed of trust		2,073		97		2,145		70
Second deed of trust		574		23		828		46
		2,947		145		3,273		139
Commercial and industrial loans
(except those secured by real estate)		195		1		280		1
Consumer and other		—		—		—		—
	$	10,044	$	410	$	9,856	$	385

Schedule of troubled debt restructurings on financing receivables

							Specific
							Valuation
	Total		Performing		Nonaccrual		Allowance
December 31, 2021
Commercial real estate
Owner occupied	$	3,243	$	3,243	$	—	$	4
Non-owner occupied		1,458		1,172		286		—
		4,701		4,415		286		4
Consumer real estate
Secured by 1-4 family residential
First deeds of trust		1,666		1,279		387		7
Second deeds of trust		99		40		59		—
		1,765		1,319		446		7
Commercial and industrial loans
(except those secured by real estate)		19		—		19		—
	$	6,485	$	5,734	$	751	$	11
Number of loans		28		23		5		3

							Specific
							Valuation
	Total		Performing		Nonaccrual		Allowance
December 31, 2020
Commercial real estate
Owner occupied	$	3,396	$	3,396	$	—	$	9
Non-owner occupied		1,991		1,688		303		—
		5,387		5,084		303		9
Consumer real estate
Secured by 1-4 family residential
First deeds of trust		1,460		910		550		8
Second deeds of trust		617		556		61		—
		2,077		1,466		611		8
Commercial and industrial loans
(except those secured by real estate)		27		—		27		—
	$	7,491	$	6,550	$	941	$	17
Number of loans		34		27		7		2

Schedule of troubled debt restructurings on financing receivables modification

The following table provides information about TDRs identified during the indicated periods (dollars in thousands).

	Year Ended					Year Ended
	December 31, 2021					December 31, 2020
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Loans	Balance		Balance		Loans	Balance		Balance
Commercial real estate Non-owner occupied	—	$	—	$	—	1	$	311	$	311
Secured by 1-4 family residential
First deed of trust	1		267		267	—		—		—
	1	$	267	$	267	1	$	311	$	311

Schedule of activity in the allowance for loan losses

Activity in the allowance for loan losses was as follows for the periods indicated (in thousands):

			Provision for
	Beginning		(Recovery of)						Ending
	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Year Ended December 31, 2021
Construction and land development
Residential	$	214	$	(157)	$	—	$	—	$	57
Commercial		285		(56)		—		—		229
		499		(213)		—		—		286
Commercial real estate
Owner occupied		1,047		(214)		—		—		833
Non-owner occupied		1,421		(352)		—		14		1,083
Multifamily		47		(12)		—		—		35
Farmland		2		—		—		—		2
		2,517		(578)		—		14		1,953
Consumer real estate
Home equity lines		24		(23)		—		11		12
Secured by 1-4 family residential
First deed of trust		166		(54)		—		11		123
Second deed of trust		79		1		(84)		51		47
		269		(76)		(84)		73		182
Commercial and industrial loans
(except those secured by real estate)		408		47		—		31		486
Student loans		87		13		(35)		—		65
Consumer and other		36		39		(46)		—		29
Unallocated		154		268		—		—		422
	$	3,970	$	(500)	$	(165)	$	118	$	3,423
Year Ended December 31, 2020
Construction and land development
Residential	$	48	$	141	$	—	$	25	$	214
Commercial		137		148		—		—		285
		185		289		—		25		499
Commercial real estate
Owner occupied		671		376		—		—		1,047
Non-owner occupied		831		590		—		—		1,421
Multifamily		85		(38)		—		—		47
Farmland		2		—		—		—		2
		1,589		928		—		—		2,517
Consumer real estate
Home equity lines		271		(247)		—		—		24
Secured by 1-4 family residential
First deed of trust		343		(190)		—		13		166
Second deed of trust		64		45		(85)		55		79
		678		(392)		(85)		68		269
Commercial and industrial loans
(except those secured by real estate)		572		(58)		(135)		29		408
Student loans		108		27		(48)		—		87
Consumer and other		30		26		(24)		4		36
Unallocated		24		130		—		—		154
	$	3,186	$	950	$	(292)	$	126	$	3,970

Schedule of loans evaluated for impairment

Loans were evaluated for impairment as follows for the periods indicated (in thousands):

	Recorded Investment in Loans
	Allowance						Loans
	Ending						Ending
	Balance		Individually		Collectively		Balance		Individually		Collectively
Year Ended December 31, 2021
Construction and land development
Residential	$	57	$	—	$	57	$	6,805	$	—	$	6,805
Commercial		229		—		229		42,344		—		42,344
		286		—		286		49,149		—		49,149
Commercial real estate
Owner occupied		833		4		829		113,108		5,043		108,065
Non-owner occupied		1,083		—		1,083		129,786		1,458		128,328
Multifamily		35		—		35		11,666		—		11,666
Farmland		2		—		2		977		—		977
		1,953		4		1,949		255,537		6,501		249,036
Consumer real estate
Home equity lines		12		—		12		17,977		300		17,677
Secured by 1-4 family residential
First deed of trust		123		7		116		62,277		2,019		60,258
Second deed of trust		47		—		47		12,118		238		11,880
		182		7		175		92,372		2,557		89,815
Commercial and industrial loans
(except those secured by real estate)		486		—		486		100,421		185		100,236
Student loans		65		—		65		25,975		—		25,975
Consumer and other		451		—		451		3,003		—		3,003
	$	3,423	$	11	$	3,412	$	526,457	$	9,243	$	517,214
Year Ended December 31, 2020
Construction and land development
Residential	$	214	$	—	$	214	$	8,103	$	—	$	8,103
Commercial		285		—		285		21,466		—		21,466
		499		—		499		29,569		—		29,569
Commercial real estate
Owner occupied		1,047		9		1,038		99,784		3,905		95,879
Non-owner occupied		1,421		—		1,421		121,184		1,991		119,193
Multifamily		47		—		47		9,889		—		9,889
Farmland		2		—		2		367		—		367
		2,517		9		2,508		231,224		5,896		225,328
Consumer real estate
Home equity lines		24		—		24		18,394		300		18,094
Secured by 1-4 family residential
First deed of trust		166		8		158		57,089		2,011		55,078
Second deed of trust		79		—		79		11,097		699		10,398
		269		8		261		86,580		3,010		83,570
Commercial and industrial loans
(except those secured by real estate)		408		—		408		181,088		141		180,947
Student loans		87		—		87		29,657		—		29,657
Consumer and other		190		—		190		2,885		—		2,885
	$	3,970	$	17	$	3,953	$	561,003	$	9,047	$	551,956