Loans (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Summary of Major Classifications of Loans

Major classifications of loans are summarized as follows:

	March 31, 2021			December 31, 2020
	(in thousands)
Commercial:
Real estate	$	184,400		$	189,291
Land development		1,475			1,492
Other		43,915			46,184
Residential real estate:
First mortgage		77,934			68,968
Construction		2,042			2,954
Consumer:
Home equity and lines of credit		19,955			22,348
Other		273			361
Subtotal		329,994			331,598
Net deferred loan costs		270			178
Allowance for loan losses		(2,699	)		(2,703	)
Loans, net	$	327,565		$	329,073

Schedule of Analysis of Past due Loans

An analysis of past due loans is presented below:

	March 31, 2021
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
	(in thousands)
Commercial:
Real estate	$	—	$	—	$	—	$	184,400	$	184,400
Land development		—		—		—		1,475		1,475
Other		—		—		—		43,915		43,915
Residential real estate:
First mortgage		918		—		918		77,016		77,934
Construction		—		—		—		2,042		2,042
Consumer:
Home equity and lines of credit		28		5		33		19,922		19,955
Other		—		—		—		273		273
Total	$	946	$	5	$	951	$	329,043	$	329,994

	December 31, 2020
	30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans
	(in thousands)
Commercial:
Real estate	$	241	$	—	$	241	$	189,050	$	189,291
Land development		—		—		—		1,492		1,492
Other		33		—		33		46,151		46,184
Residential real estate:
First mortgage		684		137		821		68,147		68,968
Construction		—		—		—		2,954		2,954
Consumer:
Home equity and lines of credit		121		23		144		22,204		22,348
Other		—		—		—		361		361
Total	$	1,079	$	160	$	1,239	$	330,359	$	331,598

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, 2021 and March 31, 2020 is presented below:

	Commercial		Residential		Consumer			Total
	(in thousands)
Three months ended March 31, 2021
Allowance for loan losses
Beginning balance	$	1,609	$	745	$	349		$	2,703
Provision for loan losses		—		—		—			—
Loans charged-off		—		—		(16	)		(16	)
Recoveries		5		—		7			12
Ending balance	$	1,614	$	745	$	340		$	2,699
Three months ended March 31, 2020
Allowance for loan losses
Beginning balance	$	1,235	$	573	$	192		$	2,000
Provision for loan losses		—		—		—			—
Loans charged-off		—		—		(5	)		(5	)
Recoveries		6		—		7			13
Ending balance	$	1,241	$	573	$	194		$	2,008

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, 2021
	Commercial		Residential		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	9,815	$	625	$	21	$	10,461
Collectively evaluated for impairment		219,975		79,351		20,207		319,533
Total loans	$	229,790	$	79,976	$	20,228	$	329,994
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		1,614		745		340		2,699
Total allowance for loan losses	$	1,614	$	745	$	340	$	2,699

	December 31, 2020
	Commercial		Residential		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	10,573	$	411	$	21	$	11,005
Collectively evaluated for impairment		226,394		71,511		22,688		320,593
Total loans	$	236,967	$	71,922	$	22,709	$	331,598
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		1,609		745		349		2,703
Total allowance for loan losses	$	1,609	$	745	$	349	$	2,703

Summary of Internal Risk Ratings of Loans

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

	March 31, 2021
	Pass		Watch and Special Mention		Substandard		Total
	(in thousands)
Commercial:
Real estate	$	160,045	$	17,985	$	6,370	$	184,400
Land development		—		—		1,475		1,475
Other		36,658		5,287		1,970		43,915
Total	$	196,703	$	23,272	$	9,815	$	229,790

	December 31, 2020
	Pass		Watch and Special Mention		Substandard		Total
	(in thousands)
Commercial:
Real estate	$	163,961	$	19,272	$	6,058	$	189,291
Land development		—		—		1,492		1,492
Other		37,675		5,705		2,804		46,184
Total	$	201,636	$	24,977	$	10,354	$	236,967

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, 2021
	Performing		Non     Performing		Total
	(in thousands)
Residential real estate:
First mortgage	$	76,804	$	1,130	$	77,934
Construction		2,042		—		2,042
Consumer:
Home equity and lines of credit		19,840		115		19,955
Other		273		—		273
Total	$	98,959	$	1,245	$	100,204

	December 31, 2020
	Performing		Non Performing		Total
	(in thousands)
Residential real estate:
First mortgages	$	67,817	$	1,151	$	68,968
Construction		2,954		—		2,954
Consumer:
Home equity and lines of credit		22,212		136		22,348
Other		361		—		361
Total	$	93,344	$	1,287	$	94,631

Summary of Information Regarding Impaired Loans

Information regarding impaired loans is presented below:

	As of and for the Three Months Ended March 31, 2021
	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		—		—		—		—		—
Other		—		—		—		—		—
Total impaired loans with reserve		—		—		—		—		—
Impaired loans with no reserve:
Commercial:
Real estate		6,370		6,370		NA		6,402		59
Land development		1,475		1,475		NA		1,481		11
Other		1,970		1,977		NA		2,178		11
Residential real estate:
First mortgages		625		708		NA		626		4
Construction		—		—		NA		—		—
Consumer:
Home equity and lines of credit		21		51		NA		22		—
Other		—		—		NA		—		—
Total impaired loans with no reserve		10,461		10,581		NA		10,709		85
Total impaired loans	$	10,461	$	10,581	$	—	$	10,709	$	85

	As of and for the Year Ended December 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		—		—		—		36		—
Construction		—		—		—		—		—
Consumer:
Home equity and lines of credit		—		—		—		4		—
Other		—		—		—		—		—
Total impaired loans with reserve		—		—		—		40		—
Impaired loans with no reserve:
Commercial:
Real estate		6,277		6,277		NA		6,268		332
Land development		1,492		1,492		NA		503		40
Other		2,804		2,804		NA		2,301		138
Residential real estate:
First mortgages		411		495		NA		568		261
Construction		—		—		NA		—		—
Consumer:
Home equity and lines of credit		21		51		NA		24		3
Other		—		—		NA		—		—
Total impaired loans with no reserve		11,005		11,119		NA		9,664		774
Total impaired loans	$	11,005	$	11,119	$	—	$	9,704	$	774

Summary of Nonperforming Loans

Nonperforming loans are as follows:

	March 31, 2021		December 31, 2020
	(in thousands)
Nonaccrual loans, other than troubled debt restructurings	$	1,028	$	1,068
Nonaccrual loans, troubled debt restructurings		217		219
Total nonperforming loans (NPLs)	$	1,245	$	1,287
Troubled debt restructurings, accruing	$	428	$	432

Summary of Information Regarding Non-accrual Loans

Information on non-accrual loans is presented below:

	March 31, 2021			December 31, 2020
	(in thousands)
Commercial:
Real estate	$	—		$	—
Land development		—			—
Other		—			—
Residential real estate:
First mortgages		1,130			1,151
Construction		—			—
Consumer:
Home equity and lines of credit		115			136
Other		—			—
Total non-accrual loans	$	1,245		$	1,287
Total non-accrual loans to total loans		0.38	%		0.39	%
Total non-accrual loans to total assets		0.24	%		0.25	%