Loans (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Summary of Major Classifications of Loans

Major classifications of loans are summarized as follows:

	March 31, 2020			December 31, 2019
	(in thousands)
Commercial:
Real estate	$	179,799		$	178,882
Land development		1,598			1,623
Other		33,449			34,072
Residential real estate:
First mortgage		58,493			65,450
Construction		1,793			2,041
Consumer:
Home equity and lines of credit		29,005			29,691
Other		532			611
Subtotal		304,669			312,370
Net deferred loan fees		307			304
Allowance for loan losses		(2,008	)		(2,000	)
Loans, net	$	302,968		$	310,674

Schedule of Analysis of Past due Loans

An analysis of past due loans is presented below:

	March 31, 2020
	31-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
	(in thousands)
Commercial:
Real estate	$	371	$	—	$	371	$	179,428	$	179,799
Land development		—		—		—		1,598		1,598
Other		—		—		—		33,449		33,449
Residential real estate:
First mortgage		1,295		227		1,522		56,971		58,493
Construction		—		—		—		1,793		1,793
Consumer:
Home equity and lines of credit		28		7		35		28,970		29,005
Other		—		—		—		532		532
Total	$	1,694	$	234	$	1,928	$	302,741	$	304,669

	December 31, 2019
	31-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
	(in thousands)
Commercial:
Real estate	$	—	$	180	$	180	$	178,702	$	178,882
Land development		—		—		—		1,623		1,623
Other		148		—		148		33,924		34,072
Residential real estate:
First mortgage		1,059		537		1,596		63,854		65,450
Construction		—		—		—		2,041		2,041
Consumer:
Home equity and lines of credit		13		—		13		29,678		29,691
Other		—		—		—		611		611
Total	$	1,220	$	717	$	1,937	$	310,433	$	312,370

Summary of Activity in Allowance for Loan and Lease Losses

A summary of activity in the allowance for loan losses for the three months ended March 31, 2020 and 12 months ended December 31, 2019 is presented below:

	Commercial		Residential			Consumer			Total
	(in thousands)
Three months ended March 31, 2020
Allowance for loan losses
Beginning balance	$	1,235	$	573		$	192		$	2,000
Provision (credit) for loan losses		—		—			—			—
Loans charged-off		—		—			(5	)		(5	)
Recoveries		6		—			7			13
Ending balance	$	1,241	$	573		$	194		$	2,008
Three months ended March 31, 2019
Allowance for loan losses
Beginning balance	$	1,448	$	1,250		$	564		$	3,262
Provision (credit) for loan losses		—		—			—			—
Loans charged-off		—		(37	)		(1	)		(38	)
Recoveries		196		—			6			202
Ending balance	$	1,644	$	1,213		$	569		$	3,426

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:

	March 31, 2020
	Commercial		Residential		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	6,693	$	661	$	32	$	7,386
Collectively evaluated for impairment		208,153		59,625		29,505		297,283
Total loans	$	214,846	$	60,286	$	29,537	$	304,669
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	62	$	5	$	67
Collectively evaluated for impairment		1,241		511		189		1,941
Total allowance for loan losses	$	1,241	$	573	$	194	$	2,008

	December 31, 2019
	Commercial		Residential		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	6,931	$	1,078	$	32	$	8,041
Collectively evaluated for impairment		207,646		66,413		30,270		304,329
Total loans	$	214,577	$	67,491	$	30,302	$	312,370
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	62	$	5	$	67
Collectively evaluated for impairment		1,235		511		187		1,933
Total allowance for loan losses	$	1,235	$	573	$	192	$	2,000

Summary of Internal Risk Ratings of Loans

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

	March 31, 2020
	Pass		Watch and Special Mention		Substandard		Total
	(in thousands)
Commercial:
Real estate	$	169,812	$	4,627	$	5,360	$	179,799
Land development		—		1,598		—		1,598
Other		25,603		7,045		801		33,449
Total	$	195,415	$	13,270	$	6,161	$	214,846

	December 31, 2019
	Pass		Watch and Special Mention		Substandard		Total
	(in thousands)
Commercial:
Real estate	$	168,834	$	4,418	$	5,630	$	178,882
Land development		—		1,623		—		1,623
Other		27,522		5,517		1,033		34,072
Total	$	196,356	$	11,558	$	6,663	$	214,577

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:

	March 31, 2020
	Performing		Non Performing		Total
	(in thousands)
Residential real estate:
First mortgage	$	57,012	$	1,481	$	58,493
Construction		1,793		—		1,793
Consumer:
Home equity and lines of credit		28,865		140		29,005
Other		532		—		532
Total	$	88,202	$	1,621	$	89,823

	December 31, 2019
	Performing		Non Performing		Total
	(in thousands)
Residential real estate:
First mortgages	$	63,760	$	1,690	$	65,450
Construction		2,041		—		2,041
Consumer:
Home equity and lines of credit		29,548		143		26,691
Other		611		—		611
Total	$	95,960	$	1,833	$	97,793

Summary of Information Regarding Impaired Loans

Information regarding impaired loans is presented below:

	As of and for the Three Months Ended March 31, 2020
	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		62		62		62		62		—
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		5		6		5		5		—
Other		—		—		—		—		—
Total impaired loans with reserve		67		68		67		67		—
Impaired loans with no reserve:
Commercial:
Real estate		5,838		5838		NA		5,855		67
Land development		—		—		NA		—		—
Other		855		855		NA		835		17
Residential real estate:
First mortgages		599		870		NA		720		85
Construction		—		—		NA		—		—
Consumer:
Home equity and lines of credit		27		56		NA		27		1
Other		—		—		NA		—		—
Total impaired loans with no reserve		7,319		7,619		NA		7,437		170
Total impaired loans	$	7,386	$	7,687	$	67	$	7,504	$	170

	As of and for the Year Ended December 31, 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		62		62		62		43		—
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		5		6		5		16		—
Other		—		—		—		—		—
Total impaired loans with reserve		67		68		67		59		—
Impaired loans with no reserve:
Commercial:
Real estate		5,840		5,840		NA		1,824		87
Land development		—		—		NA		126		—
Other		1,091		1,091		NA		488		23
Residential real estate:
First mortgages		1,016		1,350		NA		1,056		18
Construction		—		—		NA		—		—
Consumer:
Home equity and lines of credit		27		56		NA		29		—
Other		—		—		NA		—		—
Total impaired loans with no reserve		7,974		8,337		NA		3,523		128
Total impaired loans	$	8,041	$	8,405	$	67	$	3,582	$	128

Summary of Nonperforming Loans

Nonperforming loans are as follows:

	March 31, 2020		December 31, 2019
	(in thousands)
Nonaccrual loans, other than troubled debt restructurings	$	1,211	$	1,416
Nonaccrual loans, troubled debt restructurings		410		597
Total nonperforming loans (NPLs)	$	1,621	$	2,013
Restructured loans, accruing	$	442	$	466

Summary of Information Regarding Non-accrual Loans

Information on non-accrual loans is presented below:

	March 31, 2020			December 31, 2019
	(in thousands)
Commercial:
Real estate	$	—		$	180
Land development		—			—
Other		—			—
Residential real estate:
First mortgages		1,481			1,690
Construction		—			—
Consumer:
Home equity and lines of credit		140			143
Other		—			—
Total non-accrual loans	$	1,621		$	2,013
Total non-accrual loans to total loans		0.53	%		0.64	%
Total non-accrual loans to total assets		0.36	%		0.47	%