Loans (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans consisted of the following at June 30, 2020 and December 31, 2019:

	June 30, 2020			December 31, 2019
	(Dollars in thousands)
Commercial real estate (CRE)	$	69,068		$	70,194
Multifamily (MF)		6,425			4,888
Commercial and industrial (C+I)		53,696			24,676
Acquisition, development, and land (ADL)		23,637			18,844
1-4 family residential (RES)		217,376			213,322
Home equity line of credit (HELOC)		9,359			10,123
Consumer (CON)		1,960			1,752
Total loans		381,521			343,799
Net deferred loan (fees) costs		(33	)		1,056
Allowance for loan losses		(3,153	)		(2,875	)
Total loans, net	$	378,335		$	341,980

Schedule Of Allowance For Loans And Leases Receivable Classification

Changes in the allowance for loan losses (“ALL”) for the three and six months ended June 30, 2020 and 2019 by portfolio segment are summarized as follows:

(Dollars in thousands)	CRE			MF			C+I			ADL			RES			HELOC			CON			Unallocated			Total
Balance, December 31, 2018	$	560		$	22		$	232		$	88		$	1,593		$	69		$	7		$	235		$	2,806
Provision for loan losses		84			(1	)		(12	)		55			(8	)		(18	)		(2	)		(98	)		—
Charge-offs		—			—			—			—			—			—			—			—			—
Recoveries		—			—			—			—			—			—			—			—			—
Balance, March 31, 2019		644			21			220			143			1,585			51			5			137			2,806
Provision for loan losses		78			1			(4	)		(61	)		143			3			3			(138	)		25
Charge-offs		—			—			—			—			—			—			—			—			—
Recoveries		—			—			—			—			—			—			1			—			1
Balance, June 30, 2019		722			22			216			82			1,728			54			9			(1	)		2,832
Balance, December 31, 2019		781			23			350			145			1,503			52			18			3			2,875
Provision for loan losses		(4	)		25			(63	)		(10	)		140			27			2			(2	)		115
Charge-offs		—			—			—			—			—			—			—			—			—
Recoveries		19			—			—			—			—			—			—			—			19
Balance, March 31, 2020		796			48			287			135			1,643			79			20			1			3,009
Provision for loan losses		(56	)		4			(11	)		88			47			(21	)		27			82			160
Charge-offs		—			—			—			—			—			—			(18	)		—			(18	)
Recoveries		—			—			2			—			—			—			—			—			2
Balance, June 30, 2020	$	740		$	52		$	278		$	223		$	1,690		$	58		$	29		$	83		$	3,153

As of June 30, 2020 and December 31, 2019, information about loans and the ALL by portfolio segment are summarized below:

(Dollars in thousands)	CRE		MF		C+I		ADL		RES		HELOC		CON		Unallocated		Total
June 30, 2020 Loan Balances
Individually evaluated for impairment	$	229	$	—	$	1,018	$	—	$	65	$	—	$	—	$	—	$	1,312
Collectively evaluated for impairment		68,839		6,425		52,678		23,637		217,311		9,359		1,960		—		380,209
Total	$	69,068	$	6,425	$	53,696	$	23,637	$	217,376	$	9,359	$	1,960	$	—	$	381,521
ALL related to the loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		740		52		278		223		1,690		58		29		83		3,153
Total	$	740	$	52	$	278	$	223	$	1,690	$	58	$	29	$	83	$	3,153
December 31, 2019 Loan Balances
Individually evaluated for impairment	$	109	$	—	$	996	$	—	$	66	$	—	$	—	$	—	$	1,171
Collectively evaluated for impairment		70,085		4,888		23,680		18,844		213,256		10,123		1,752				342,628
Total	$	70,194	$	4,888	$	24,676	$	18,844	$	213,322	$	10,123	$	1,752	$	—	$	343,799
ALL related to the loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		781		23		350		145		1,503		52		18		3		2,875
Total	$	781	$	23	$	350	$	145	$	1,503	$	52	$	18	$	3	$	2,875

Past Due Financing Receivables

The following is an aging analysis of past due loans by portfolio segment as of June 30, 2020:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	210	$	—	$	—	$	210	$	68,858	$	69,068	$	—
MF		—		—		—		—		6,425		6,425		—
C+I		—		—		909		909		52,787		53,696		909
ADL		—		—		—		—		23,637		23,637		—
RES		—		43		65		108		217,268		217,376		65
HELOC		8		—		—		8		9,351		9,359		—
CON		—		—		—		—		1,960		1,960		—
	$	218	$	43	$	974	$	1,235	$	380,286	$	381,521	$	974

The following is an aging analysis of past due loans by portfolio segment as of December 31, 2019:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	70,194	$	70,194	$	—
MF		—		—		—		—		4,888		4,888		—
C+I		—		—		996		996		23,680		24,676		996
ADL		—		—		—		—		18,844		18,844		—
RES		—		19		66		85		213,237		213,322		66
HELOC		—		—		—		—		10,123		10,123		—
CON		—		—		—		—		1,752		1,752		—
	$	—	$	19	$	1,062	$	1,081	$	342,718	$	343,799	$	1,062

Impaired Financing Receivables

The following table provides information on impaired loans as of June 30, 2020 and December 31, 2019:

(Dollars in thousands)	Recorded Carrying Value		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
June 30, 2020
With no related allowance recorded:
CRE	$	—	$	—	$	—	$	—	$	—
MF		—		—		—		—		—
C+I		909		998		—		953		—
ADL		—		—		—		—		—
RES		65		65		—		66		—
HELOC		—		—		—		—		—
CON		—		—		—		—		—
Total impaired loans	$	974	$	1,063	$	—	$	1,019	$	—
December 31, 2019
With no related allowance recorded:
CRE	$	—	$	—	$	—	$	—	$	—
MF		—		—		—		—		—
C+I		996		1,057		—		344		36
ADL		—		—		—		—		—
RES		66		66		—		67		—
HELOC		—		—		—		—		—
CON		—		—		—		—		—
Total impaired loans	$	1,062	$	1,123	$	—	$	411	$	36

Financing Receivable Credit Quality Indicators

The following presents the internal risk rating of loans by portfolio segment as of June 30, 2020:

(Dollars in thousands)	Pass		Special Mention		Substandard		Total
CRE	$	68,724	$	115	$	229	$	69,068
MF		6,425		—		—		6,425
C+I		50,877		1,801		1,018		53,696
ADL		23,637		—		—		23,637
RES		217,311		—		65		217,376
HELOC		9,359		—		—		9,359
CON		1,960		—		—		1,960
Total	$	378,293	$	1,916	$	1,312	$	381,521

The following presents the internal risk rating of loans by portfolio segment as of December 31, 2019:

(Dollars in thousands)	Pass		Special Mention		Substandard		Total
CRE	$	70,085	$	—	$	109	$	70,194
MF		4,888		—		—		4,888
C+I		22,208		2,166		302		24,676
ADL		18,844		—		—		18,844
RES		213,256		—		66		213,322
HELOC		10,123		—		—		10,123
CON		1,752		—		—		1,752
Total	$	341,156	$	2,166	$	477	$	343,799