Loans (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Summary of Major Classifications of Loans

Major classifications of loans are summarized as follows:

	September 30, 2019			December 31, 2018
	(in thousands)
Commercial:
Real estate	$	186,021		$	191,645
Land development		1,847			2,187
Other		34,646			30,508
Residential real estate:
First mortgages		68,241			108,084
Construction		3,671			2,097
Consumer:
Home equity and lines of credit		32,364			36,154
Other		722			1,914
Subtotal		327,512			372,589
Net deferred loan costs		318			503
Allowance for loan losses		(3,018	)		(3,262	)
Loans, net	$	324,812		$	369,830

Schedule of Analysis of Past due Loans

An analysis of past due loans is presented below:

	September 30, 2019
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
	(in thousands)
Commercial:
Real estate	$	—	$	—	$	—	$	186,021	$	186,021
Land development		—		—		—		1,847		1,847
Other		—		—		—		34,646		34,646
Residential real estate:
First mortgages		650		327		977		67,264		68,241
Construction		—		—		—		3,671		3,671
Consumer:
Home equity and lines of credit		—		60		60		32,304		32,364
Other		2				2		720		722
Total	$	652	$	387	$	1,039	$	326,473	$	327,512
	December 31, 2018
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
	(in thousands)
Commercial:
Real estate	$	—	$	—	$	—	$	191,645	$	191,645
Land development		—		303		303		1,884		2,187
Other		—		—		—		30,508		30,508
Residential real estate:
First mortgages		1,470		91		1,561		106,523		108,084
Construction		—		—		—		2,097		2,097
Consumer:
Home equity and lines of credit		215		13		228		35,926		36,154
Other		2		—		2		1,912		1,914
Total	$	1,687	$	407	$	2,094	$	370,495	$	372,589

Summary of Activity in Allowance for Loan and Lease Losses

A summary of activity in the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 is presented below:

	Commercial			Residential			Consumer			Total
	(in thousands)
Nine months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	1,448		$	1,250		$	564		$	3,262
Provision for loan losses		—			—			—			—
Loans charged-off		(214	)		(83	)		(186	)		(483	)
Recoveries		217			5			17			239
Ending balance	$	1,451		$	1,172		$	395		$	3,018
Year ended December 31, 2018
Allowance for loan losses
Beginning balance	$	1,369		$	1,246		$	478		$	3,093
Provision for loan losses		—			—			—			—
Loans charged-off		(1	)		—			(123	)		(124	)
Recoveries		80			4			209			293
Ending balance	$	1,448		$	1,250		$	564		$	3,262

Summary of Allowance for Loan and Lease Losses for Loans Evaluated Individually and Collectively for Impairment

A summary of the allowance for loan losses for loans evaluated individually and collectively for impairment is presented below:

	September 30, 2019
	Commercial		Residential		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	2,497	$	1,170	$	59	$	3,726
Collectively evaluated for impairment		220,017		70,742		33,027		323,786
Total loans	$	222,514	$	71,912	$	33,086	$	327,512
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	31	$	31
Collectively evaluated for impairment		1,451		1,172		364		2,987
Total allowance for loan losses	$	1,451	$	1,172	$	395	$	3,018
	December 31, 2018
	Commercial		Residential		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	1,165	$	1,176	$	36	$	2,377
Collectively evaluated for impairment		223,175		109,005		38,032		370,212
Total loans	$	224,340	$	110,181	$	38,068	$	372,589
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	6	$	6	$	12
Collectively evaluated for impairment		1,448		1,244		558		3,250
Total allowance for loan losses	$	1,448	$	1,250	$	564	$	3,262

Summary of Internal Risk Ratings of Loans

A summary of the Bank’s internal risk ratings of loans is presented below:

	September 30, 2019
	Pass		Watch and Special Mention		Substandard		Total
	(in thousands)
Commercial:
Real estate	$	179,624	$	4,812	$	1,585	$	186,021
Land development		197		1,650		—		1,847
Other		30,693		2,474		1,479		34,646
Total	$	210,514	$	8,936	$	3,064	$	222,514
	December 31, 2018
	Pass		Watch and Special Mention		Substandard		Total
	(in thousands)
Commercial:
Real estate	$	186,303	$	4,403	$	939	$	191,645
Land development		158		1,726		303		2,187
Other		25,939		4,408		161		30,508
Total	$	212,400	$	10,537	$	1,403	$	224,340

Summary of Information Regarding the Credit Quality Indicators for Residential Real Estate and Consumer Loans

Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans is presented below:

	September 30, 2019
	Performing		Non Performing		Total
	(in thousands)
Residential real estate:
First mortgages	$	66,975	$	1,266	$	68,241
Construction		3,671		—		3,671
Consumer:
Home equity and lines of credit		32,155		209		32,364
Other		722		—		722
Total	$	103,523	$	1,475	$	104,998
	December 31, 2018
	Performing		Non Performing		Total
	(in thousands)
Residential real estate:
First mortgages	$	107,018	$	1,066	$	108,084
Construction		2,097		—		2,097
Consumer:
Home equity and lines of credit		35,984		170		36,154
Other		1,914		—		1,914
Total	$	147,013	$	1,236	$	148,249

Summary of Information Regarding Impaired Loans

Information regarding impaired loans is presented below:

	As of and for the Nine Months Ended September 30, 2019
	Recorded Investment		Unpaid Principal		Reserve		Average Investment		Interest Recognized
	(in thousands)
Impaired loans with reserve:
Commercial:
Real estate	$	—	$	—	$	—	$	—	$	—
Land development		—		—		—		—		—
Other		—		—		—		—		—
Residential real estate:
First mortgages		—		—		—		—		—
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		31		31		31		17		—
Other		—		—		—		—		—
Total impaired loans with reserve		31		31		31		17		—
Impaired loans with no reserve:
Commercial:
Real estate		1,355		1,355		NA		574		20
Land development		—		—		NA		168		—
Other		1,142		1,159		NA		319		10
Residential real estate:
First mortgages		1,170		1,498		NA		1,067		13
Construction		—		—		NA		—		—
Consumer:
Home equity and lines of credit		28		56		NA		29		—
Other		—		—		NA		—		—
Total impaired loans with no reserve		3,695		4,068		NA		2,157		43
Total impaired loans	$	3,726	$	4,099	$	31	$	2,174	$	43
	As of and for the Year Ended December 31, 2018
	Recorded Investment		Unpaid Principal		Reserve		Average Investment		Interest Recognized
	(in thousands)
Impaired loans with reserve:
Commercial:
Real estate	$	—	$	—	$	—	$	—	$	—
Land development		—		—		—		—		—
Other		—		—		—		—		—
Residential real estate:
First mortgages		91		91		6		154		3
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		6		6		6		124		—
Other		—		—		—		—		—
Total impaired loans with reserve		97		97		12		278		3
Impaired loans with no reserve:
Commercial:
Real estate		701		701		NA		658		40
Land development		303		303		NA		303		—
Other		161		161		NA		46		2
Residential real estate:
First mortgages		1,085		1,375		NA		1,235		25
Construction		—		—		NA		—		—
Consumer:
Home equity and lines of credit		30		56		NA		32		—
Other		—		—		NA		—		—
Total impaired loans with no reserve		2,280		2,596		NA		2,274		67
Total impaired loans	$	2,377	$	2,693	$	12	$	2,552	$	70

Summary of Nonperforming Loans

Nonperforming loans are as follows:

	September 30, 2019		December 31, 2018
	(in thousands)
Nonaccrual loans, other than troubled debt restructurings	$	868	$	906
Nonaccrual loans, troubled debt restructurings		607		649
Total nonperforming loans (NPLs)	$	1,475	$	1,555
Restructured loans, accruing	$	449	$	459

Summary of Information Regarding Non-accrual Loans

Information on non-accrual loans is presented below:

	September 30, 2019			December 31, 2018
	(in thousands)
Commercial:
Real estate	$	—		$	—
Land development		—			303
Other		—			16
Residential real estate:
First mortgages		1,266			1,066
Construction		—			—
Consumer:
Home equity and lines of credit		209			170
Other		—			—
Total non-accrual loans	$	1,475		$	1,555
Total non-accrual loans to total loans		0.45	%		0.42	%
Total non-accrual loans to total assets		0.33	%		0.32	%