Loans (Tables)

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Summary of Major Classifications of Loans

Major classifications of loans are summarized as follows:

	September 30, 2020			December 31, 2019
	(in thousands)
Commercial:
Real estate	$	183,377		$	178,882
Land development		1,524			1,623
Other		59,793			34,072
Residential real estate:
First mortgage		59,456			65,450
Construction		2,965			2,041
Consumer:
Home equity and lines of credit		24,379			29,691
Other		421			611
Subtotal		331,915			312,370
Net deferred loan costs (fees)		(445	)		304
Allowance for loan losses		(2,650	)		(2,000	)
Loans, net	$	328,820		$	310,674

Schedule of Analysis of Past due Loans

An analysis of past due loans is presented below:

	September 30, 2020
	31-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
	(in thousands)
Commercial:
Real estate	$	—	$	—	$	—	$	183,377	$	183,377
Land development		—		—		—		1,524		1,524
Other		—		—		—		59,793		59,793
Residential real estate:
First mortgage		664		51		715		58,741		59,456
Construction		—		—		—		2,965		2,965
Consumer:
Home equity and lines of credit		28		28		56		24,323		24,379
Other		—		—		—		421		421
Total	$	692	$	79	$	771	$	331,144	$	331,915

	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 and nine months ended September 30, 2020 and September 30, 2019 is presented below:

	Commercial		Residential			Consumer			Total
	(in thousands)
Three months ended September 30, 2020
Allowance for loan losses
Beginning balance	$	1,243	$	573		$	298		$	2,114
Provision for loan losses		360		100			40			500
Loans charged-off		—		(60	)		(2	)		(62	)
Recoveries		2		88			8			98
Ending balance	$	1,605	$	701		$	344		$	2,650
Three months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	1,445	$	1,172		$	570		$	3,187
Provision for loan losses		—		—			—			—
Loans charged-off		—		—			(181	)		(181	)
Recoveries		6		—			6			12
Ending balance	$	1,451	$	1,172		$	395		$	3,018

	Commercial			Residential			Consumer			Total
	(in thousands)
Nine months ended September 30, 2020
Allowance for loan losses
Beginning balance	$	1,235		$	573		$	192		$	2,000
Provision (credit) for loan losses		360			100			40			500
Loans charged-off		—			(60	)		(7	)		(67	)
Recoveries		10			88			119			217
Ending balance	$	1,605		$	701		$	344		$	2,650
Nine months ended September, 2019
Allowance for loan losses
Beginning balance	$	1,448		$	1,250		$	564		$	3,262
Provision (credit) for loan losses		—			—			—			—
Loans charged-off		(214	)		(83	)		(186	)		(483	)
Recoveries		217			5			17			239
Ending balance	$	1,451		$	1,172		$	395		$	3,018

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, 2020
	Commercial		Residential		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	11,529	$	517	$	27	$	12,073
Collectively evaluated for impairment		233,165		61,904		24,773		319,842
Total loans	$	244,694	$	62,421	$	24,800	$	331,915
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	5	$	5
Collectively evaluated for impairment		1,605		701		339		2,645
Total allowance for loan losses	$	1,605	$	701	$	344	$	2,650
	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:

	September 30, 2020
	Pass		Watch and Special Mention		Substandard		Total
	(in thousands)
Commercial:
Real estate	$	150,199	$	27,047	$	6,131	$	183,377
Land development		—		—		1,524		1,524
Other		43,372		12,769		3,652		59,793
Total	$	193,571	$	39,816	$	11,307	$	244,694
	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:

	September 30, 2020
	Performing		Non Performing		Total
	(in thousands)
Residential real estate:
First mortgage	$	58,182	$	1,274	$	59,456
Construction		2,965		—		2,965
Consumer:
Home equity and lines of credit		24,236		143		24,379
Other		421		—		421
Total	$	85,804	$	1,417	$	87,221

	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 Nine Months Ended September 30, 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		—		—		—		48		—
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		5		6		5		5		—
Other		—		—		—		—		—
Total impaired loans with reserve		5		6		5		53		—
Impaired loans with no reserve:
Commercial:
Real estate		6,352		6,352		NA		6,257		275
Land development		1,525		1,525		NA		169		17
Other		3,652		3,789		NA		1,983		89
Residential real estate:
First mortgages		517		641		NA		620		254
Construction		—		—		NA		—		—
Consumer:
Home equity and lines of credit		22		51		NA		24		2
Other		—		—		NA		—		—
Total impaired loans with no reserve		12,068		12,358		NA		9,053		637
Total impaired loans	$	12,073	$	12,364	$	5	$	9,106	$	637

	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:

	September 30, 2020		December 31, 2019
	(in thousands)
Nonaccrual loans, other than troubled debt restructurings	$	1,093	$	1,416
Nonaccrual loans, troubled debt restructurings		324		597
Total nonperforming loans (NPLs)	$	1,417	$	2,013
Troubled debt restructurings, accruing	$	435	$	466

Summary of Information Regarding Non-accrual Loans

Information on non-accrual loans is presented below:

	September 30, 2020			December 31, 2019
	(in thousands)
Commercial:
Real estate	$	—		$	180
Land development		—			—
Other		—			—
Residential real estate:
First mortgages		1,274			1,690
Construction		—			—
Consumer:
Home equity and lines of credit		143			143
Other		—			—
Total non-accrual loans	$	1,417		$	2,013
Total non-accrual loans to total loans		0.43	%		0.64	%
Total non-accrual loans to total assets		0.28	%		0.47	%