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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Loans and Allowance for Loan Losses [Abstract]  
Summary of Loans
A summary of loans at December 31, 2020 and December 31, 2019, are as follows (dollars in thousands):

    
December 31,
2020
    
December 31,
2019
  
       
Construction & development
 
$
107,855
  
$
70,628
 
1 - 4 family real estate
  
29,079
   
34,160
 
Commercial real estate - other
  
290,489
   
273,278
 
Total commercial real estate
  
427,423
   
378,066
 
         
Commercial & industrial
  
351,248
   
260,762
 
Agricultural
  
50,519
   
57,945
 
Consumer
  
9,898
   
11,895
 
         
Gross loans
  
839,088
   
708,668
 
         
Less allowance for loan losses
  
(9,639
)
  
(7,846
)
Less deferred loan fees
  
(2,475
)
  
(1,364
)
         
Net loans
 
$
826,974
  
$
699,458
 
Activity in Allowance for Loan Losses by Portfolio Segment
The following table presents, by portfolio segment, the activity in the allowance for loan losses for the years ended December 31, 2020, 2019, and 2018 (dollars in thousands):
 

 
Construction &
Development
  
1 - 4 Family
Real Estate
  
Commercial
Real Estate -
Other
  
Commercial
& Industrial
  
Agricultural
  
Consumer
  
Total
 
                      
December 31, 2020
                     
Balance, beginning of period
 
$
782
  
$
378
  
$
3,025
  
$
2,887
  
$
642
  
$
132
  
$
7,846
 
                             
Charge-offs
  
-
   
-
   
-
   
(3,289
)
  
(300
)
  
(1
)
  
(3,590
)
Recoveries
  
-
   
2
   
-
   
18
   
10
   
3
   
33
 
                             
Net charge-offs
  
-
   
2
   
-
   
(3,271
)
  
(290
)
  
2
   
(3,557
)
                             
Provision (credit) for loan losses
  
457
   
(46
)
  
312
   
4,419
   
228
   
(20
)
  
5,350
 
                             
Balance, end of period
 
$
1,239
  
$
334
  
$
3,337
  
$
4,035
  
$
580
  
$
114
  
$
9,639
 

  
Construction &
Development
  
1 - 4 Family
Real Estate
  
Commercial
Real Estate -
Other
  
Commercial
& Industrial
  
Agricultural
  
Consumer
  
Total
 
                      
December 31, 2019
                     
Balance, beginning of period
 
$
1,136
  
$
433
  
$
2,035
  
$
3,231
  
$
818
  
$
179
  
$
7,832
 
                             
Charge-offs
  
-
   
(2
)
  
-
   
(4
)
  
(11
)
  
(1
)
  
(18
)
Recoveries
  
-
   
5
   
-
   
24
   
3
   
-
   
32
 
                             
Net recoveries
  
-
   
3
   
-
   
20
   
(8
)
  
(1
)
  
14
 
                             
Provision (credit) for loan losses
  
(354
)
  
(58
)
  
990
   
(364
)
  
(168
)
  
(46
)
  
-
 
                             
Balance, end of period
 
$
782
  
$
378
  
$
3,025
  
$
2,887
  
$
642
  
$
132
  
$
7,846
 

  
Construction &
Development
  
1 - 4 Family
Commercial
  
Commercial
Real Estate -
Other
  
Commercial
& Industrial
  
Agricultural
  
Consumer
  
Total
 
                      
December 31, 2018
                     
Balance, beginning of period
 
$
1,407
  
$
431
  
$
1,865
  
$
2,779
  
$
1,015
  
$
157
  
$
7,654
 
                             
Charge-offs
  
-
   
(25
)
  
-
   
(73
)
  
-
   
-
   
(98
)
Recoveries
  
-
   
3
   
-
   
71
   
1
   
1
   
76
 
                             
Net charge-offs
  
-
   
(22
)
  
-
   
(2
)
  
1
   
1
   
(22
)
                             
Provision (credit) for loan losses
  
(271
)
  
24
   
170
   
454
   
(198
)
  
21
   
200
 
                             
Balance, end of period
 
$
1,136
  
$
433
  
$
2,035
  
$
3,231
  
$
818
  
$
179
  
$
7,832
 

The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of December 31, 2020 and December 31, 2019 (dollars in thousands):
 
  
Construction &
Development
  
1 - 4 Family
Real Estate
  
Commercial
Real Estate -
Other
  
Commercial
& Industrial
  
Agricultural
  
Consumer
  
Total
 
                      
December 31, 2020
                     
Allowance Balance
                     
Ending balance
                     

                     
Individually evaluated for impairment
 
$
-
  
$
-
  
$
-
  
$
177
  
$
-
  
$
-
  
$
177
 
Collectively evaluated for impairment
  
1,239
   
334
   
3,337
   
3,858
   
580
   
114
   
9,462
 
                             
Total
 
$
1,239
  
$
334
  
$
3,337
  
$
4,035
  
$
580
  
$
114
  
$
9,639
 

                      
Gross Loans
                     
Ending balance
                     

                     
Individually evaluated for impairment
 
$
-
  
$
-
  
$
8,054
  
$
14,601
  
$
468
  
$
-
  
$
23,123
 
Collectively evaluated for impairment
  
107,855
   
29,079
   
282,435
   
336,647
   
50,051
   
9,898
   
815,965
 
                             
Total
 
$
107,855
  
$
29,079
  
$
290,489
  
$
351,248
  
$
50,519
  
$
9,898
  
$
839,088
 

December 31, 2019
                            
Allowance Balance
                            
Ending balance
                            

                            
Individually evaluated for impairment
 
$
-
  
$
-
  
$
26
  
$
-
  
$
-
  
$
-
  
$
26
 
Collectively evaluated for impairment
  
782
   
378
   
2,999
   
2,887
   
642
   
132
   
7,820
 
                             
Total
 
$
782
  
$
378
  
$
3,025
  
$
2,887
  
$
642
  
$
132
  
$
7,846
 

Gross Loans
                            
Ending balance
                            

                            
Individually evaluated for impairment
 
$
-
  
$
-
  
$
5,841
  
$
2,750
  
$
2,527
  
$
-
  
$
11,118
 
Collectively evaluated for impairment
  
70,628
   
34,160
   
267,437
   
258,012
   
55,418
   
11,895
   
697,550
 
                             
Total
 
$
70,628
  
$
34,160
  
$
273,278
  
$
260,762
  
$
57,945
  
$
11,895
  
$
708,668
 
Loan Portfolio Based on Internal Rating Category
The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of December 31, 2020 and December 31, 2019 (dollars in thousands):
 
       
Construction &
Development
       
1 - 4 Family
Real Estate
      
Commercial
Real Estate -
Other
       
Commercial
& Industrial
        
Agricultural
        
Consumer
        
Total
   
                      
December 31, 2020
                     
Grade
                     
1 (Pass)
 
$
107,855
  
$
28,711
  
$
248,194
  
$
328,656
  
$
50,051
  
$
9,898
  
$
773,365
 
2 (Watch)
  
-
   
368
   
24,155
   
7,691
   
-
   
-
   
32,214
 
3 (Special Mention)
  
-
   
-
   
10,086
   
300
   
-
   
-
   
10,386
 
4 (Substandard)
  
-
   
-
   
8,054
   
14,601
   
468
   
-
   
23,123
 
                             
Total
 
$
107,855
  
$
29,079
  
$
290,489
  
$
351,248
  
$
50,519
  
$
9,898
  
$
839,088
 

       
Construction &
Development
       
1 - 4 Family
Real Estate
      
Commercial
Real Estate -
Other
       
Commercial
& Industrial
        
Agricultural
        
Consumer
        
Total
 
 
 
                      
December 31, 2019
                     
Grade
                     
1 (Pass)
 
$
70,628
  
$
33,622
  
$
267,437
  
$
241,176
  
$
53,290
  
$
11,895
  
$
678,048
 
2 (Watch)
  
-
   
538
   
-
   
5,312
   
-
   
-
   
5,850
 
3 (Special Mention)
  
-
   
-
   
-
   
11,524
   
2,128
   
-
   
13,652
 
4 (Substandard)
  
-
   
-
   
5,841
   
2,750
   
2,527
   
-
   
11,118
 
                             
Total
 
$
70,628
  
$
34,160
  
$
273,278
  
$
260,762
  
$
57,945
  
$
11,895
  
$
708,668
 
Loan Portfolio Aging Analysis of Recorded Investment in Loans
The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2020 and December 31, 2019 (dollars in thousands):


 
Past Due
  
     
Total Loans
> 90 Days &
Accruing
 
  
30–59
Days
  
60–89
Days
  
Greater than
90 Days
  
Total
  
Current
  
Total
Loans
   
                      
December 31, 2020
                     
Construction & development
 
$
714
  
$
-
  
$
-
  
$
714
  
$
107,141
  
$
107,855
  
$
-
 
1 - 4 Family Real Estate
  
-
   
-
   
-
   
-
   
29,079
   
29,079
   
-
 
Commercial Real Estate - other
  
1,444
   
-
   
1,960
   
3,404
   
287,085
   
290,489
   
1,960
 
Commercial & industrial
  
-
   
-
   
-
   
-
   
351,248
   
351,248
   
-
 
Agricultural
  
-
   
-
   
-
   
-
   
50,519
   
50,519
   
-
 
Consumer
  
193
   
-
   
-
   
193
   
9,705
   
9,898
   
-
 
                             
Total
 
$
2,351
  
$
-
  
$
1,960
  
$
4,311
  
$
834,777
  
$
839,088
  
$
1,960
 

December 31, 2019
                            
Construction & development
 
$
-
  
$
-
  
$
-
  
$
-
  
$
70,628
  
$
70,628
  
$
-
 
1 - 4 Family Real Estate
  
-
   
-
   
-
   
-
   
34,160
   
34,160
   
-
 
Commercial Real Estate - other
  
-
   
-
   
-
   
-
   
273,278
   
273,278
   
-
 
Commercial & industrial
  
-
   
-
   
14
   
14
   
260,748
   
260,762
   
14
 
Agricultural
  
-
   
-
   
598
   
598
   
57,347
   
57,945
   
598
 
Consumer
  
90
   
-
   
-
   
90
   
11,805
   
11,895
   
-
 
                             
Total
 
$
90
  
$
-
  
$
612
  
$
702
  
$
707,966
  
$
708,668
  
$
612
 
Impaired Loans
The following table presents impaired loans as of December 31, 2020 and December 31, 2019 (dollars in thousands):
 
  
Unpaid
Principal
Balance
  
Recorded
Investment
with No
Allowance
  
Recorded
Investment
with an
Allowance
  
Total
Recorded
Investment
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
 
                  
December 31, 2020
                     
Construction & development
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
1 - 4 Family Real Estate
  
-
   
-
   
-
   
-
   
-
   
570
   
-
 
Commercial Real Estate - other
  
8,353
   
8,054
   
-
   
8,054
   
-
   
5,209
   
554
 
Commercial & industrial
  
18,082
   
14,424
   
177
   
14,601
   
177
   
15,668
   
1,049
 
Agricultural
  
768
   
468
   
-
   
468
   
-
   
2,318
   
(13
)
Consumer
  
-
   
-
   
-
   
-
   
-
   
-
   
-
 
                             
Total
 
$
27,203
  
$
22,946
  
$
177
  
$
23,123
  
$
177
  
$
23,765
  
$
1,590
 

December 31, 2019
                     
Construction & development
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
1 - 4 Family Real Estate
  
-
   
-
   
-
   
-
   
-
   
208
   
-
 
Commercial Real Estate - other
  
5,841
   
4,032
   
1,809
   
5,841
   
26
   
2,557
   
440
 
Commercial & industrial
  
2,750
   
2,750
   
-
   
2,750
   
-
   
5,495
   
281
 
Agricultural
  
2,527
   
1,744
   
-
   
1,744
   
-
   
2,238
   
174
 
Consumer
  
-
   
-
   
-
   
-
   
-
   
98
   
-
 
                             
Total
 
$
11,118
  
$
8,526
  
$
1,809
  
$
10,335
  
$
26
  
$
10,596
  
$
895
 
Information Regarding Nonperforming Assets
The following table represents information regarding nonperforming assets at December 31, 2020 and December 31, 2019 (dollars in thousands):

  
Construction &
Development
  
1 - 4 Family
Real Estate
  
Commercial
Real Estate -
Other
  
Commercial
& Industrial
  
Agricultural
  
Consumer
  
Total
 
                      
December 31, 2020
                     
Nonaccrual loans
 
$
-
  
$
-
  
$
3,043
  
$
11,063
  
$
469
  
$
-
  
$
14,575
 
Troubled-debt restructurings (1)
  
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Accruing loans 90 or more days past due
  
-
   
-
   
1,960
   
-
   
-
   
-
   
1,960
 
                             
Total nonperforming loans
 
$
-
  
$
-
  
$
5,003
  
$
11,063
  
$
469
  
$
-
  
$
16,535
 

  
Construction &
Development
  
1 - 4 Family
Real Estate
  
Commercial
Real Estate -
Other
  
Commercial
& Industrial
  
Agricultural
  
Consumer
  
Total
 
                      
December 31, 2019
                     
Nonaccrual loans
 
$
-
  
$
-
  
$
1,809
  
$
-
  
$
-
  
$
-
  
$
1,809
 
Troubled-debt restructurings (1)
  
-
   
-
   
-
   
-
   
912
   
-
   
912
 
Accruing loans 90 or more days past due
  
-
   
-
   
-
   
14
   
598
   
-
   
612
 
                             
Total nonperforming loans
 
$
-
  
$
-
  
$
1,809
  
$
14
  
$
1,510
  
$
-
  
$
3,333
 
 
(1) $12.98 million and $1.81 million of TDRs as of December 31, 2020 and 2019, respectively, are included in the nonaccrual loans balance in the line above.