Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2021

Allowance For Loan Losses [Abstract]

Summary of Transactions in Allowance for Loan Losses

A summary of the transactions in the allowance for loan losses for the years ended December 31, 2021 and 2020 appears below:

(Dollars in thousands)	2021			2020
Balance, beginning of period	$	5,455		$	4,209
Loans charged off		(835	)		(805	)
Recoveries		350			429
Net charge-offs		(485	)		(376	)
Provision for loan losses		1,014			1,622
Balance, December 31	$	5,984		$	5,455

Internal Risk Rating Grades

The following represents the loan portfolio designated by the internal risk ratings assigned to each credit at December 31, 2021 and 2020. There were no loans rated “Doubtful” as of either period.

December 31, 2021	Excellent		Good		Pass		Watch		Special Mention		Sub- standard		TOTAL
(Dollars in thousands)
Commercial	$	45,862	$	13,920	$	32,460	$	732	$	1,645	$	2,077	$	96,696
Real estate construction and    land		-		-		51,098		7,360		2,849		18,024		79,331
1-4 family residential    mortgages		-		2,030		334,300		5,013		1,520		15,285		358,148
Commercial mortgages		-		-		382,108		61,563		8,530		21,431		473,632
Consumer		524		18,535		32,821		1,225		179		120		53,404
Total Loans	$	46,386	$	34,485	$	832,787	$	75,893	$	14,723	$	56,937	$	1,061,211

December 31, 2020	Excellent		Good		Pass		Watch		Special Mention		Sub- standard		TOTAL
(Dollars in thousands)
Commercial	$	87,014	$	14,336	$	16,126	$	485	$	-	$	727	$	118,688
Real estate construction and    land		-		-		22,305		-		-		204		22,509
1-4 family residential    mortgages		-		-		126,910		3,634		1,357		1,065		132,966
Commercial mortgages		-		-		261,663		5,854		-		9,592		277,109
Consumer		1,012		18,929		36,573		1,373		64		183		58,134
Total Loans	$	88,026	$	33,265	$	463,577	$	11,346	$	1,421	$	11,771	$	609,406

Summary of Transactions in Allowance for Loan Losses by Major Loan Portfolio Segment

Allowance for Loan Losses Rollforward by Portfolio Segment

As of and for the year ended December 31, 2021

(Dollars in thousands)	Commercial Loans			Real Estate Construction and Land		Real Estate Mortgages		Consumer Loans			Total
Allowance for Loan Losses:
Balance as of beginning of year	$	209		$	160	$	3,897	$	1,189		$	5,455
Charge-offs		(147	)		-		-		(688	)		(835	)
Recoveries		191			12		6		141			350
Provision for (recovery of) loan losses		(1	)		227		575		213			1,014
Ending Balance	$	252		$	399	$	4,478	$	855		$	5,984
Ending Balance:
Individually evaluated for impairment	$	-		$	-	$	-	$	6		$	6
Collectively evaluated for impairment		252			399		4,478		849			5,978
Acquired loans - purchased credit    impaired		-			-		-		-			-
Loans:
Individually evaluated for impairment	$	-		$	-	$	594	$	935		$	1,529
Collectively evaluated for impairment		95,702			60,755		786,491		52,351			995,299
Acquired loans - purchased credit    impaired		994			18,576		44,695		118			64,383
Ending Balance	$	96,696		$	79,331	$	831,780	$	53,404		$	1,061,211

As of and for the year ended December 31, 2020

(Dollars in thousands)	Commercial Loans			Real Estate Construction and Land		Real Estate Mortgages		Consumer Loans			Total
Allowance for Loan Losses:
Balance as of beginning of year	$	302		$	109	$	2,684	$	1,114		$	4,209
Charge-offs		-			-		-		(805	)		(805	)
Recoveries		28			-		1		400			429
Provision for (recovery of) loan losses		(121	)		51		1,212		480			1,622
Ending Balance	$	209		$	160	$	3,897	$	1,189		$	5,455
Ending Balance:
Individually evaluated for impairment	$	-		$	-	$	-	$	4		$	4
Collectively evaluated for impairment		209			160		3,897		1,185			5,451
Loans:
Individually evaluated for impairment	$	-		$	8	$	109	$	1,156		$	1,273
Collectively evaluated for impairment		118,688			22,501		409,966		56,978			608,133
Ending Balance	$	118,688		$	22,509	$	410,075	$	58,134		$	609,406