Loans (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans consisted of the following at March 31, 2022 and December 31, 2021:

	March 31, 2022			December 31, 2021
	(Dollars in thousands)
Commercial real estate (CRE)	$	76,397		$	72,057
Multifamily (MF)		8,900			8,998
Commercial and industrial (C+I)		28,459			26,851
Acquisition, development, and land (ADL)		17,423			21,365
1-4 family residential (RES)		235,273			234,199
Home equity loans and lines of credit (HELOC)		6,569			6,947
Consumer (CON)		4,988			4,574
Total loans		378,009			374,991
Net deferred loan costs		1,814			1,650
Allowance for loan losses		(3,642	)		(3,590	)
Net loans	$	376,181		$	373,051

Schedule of Allowance For Loans And Leases Receivable Classification

Transactions in the allowance for loan losses (“ALL”) for the three months ended March 31, 2022 and 2021 by portfolio segment are summarized as follows:

(Dollars in thousands)	CRE		MF			C+I			ADL			RES			HELOC			CON			Unallocated			Total
Balance, December 31, 2021	$	833	$	80		$	194		$	178		$	2,139		$	63		$	75		$	28		$	3,590
Provision for loan losses		61		(2	)		24			(62	)		49			(1	)		19			(28	)		60
Charge-offs		—		—			—			—			—			—			(9	)		—			(9	)
Recoveries		—		—			—			—			—			—			1			—			1
Balance, March 31, 2022	$	894	$	78		$	218		$	116		$	2,188		$	62		$	86		$	—		$	3,642

Balance, December 31, 2020	$	753	$	60		$	267		$	174		$	1,656		$	78		$	52		$	302		$	3,342
Provision for loan losses		160		(21	)		(62	)		122			(97	)		(11	)		(3	)		(28	)		60
Charge-offs		—		—			—			—			—			—			—			—			—
Recoveries		—		—			1			—			—			—			1			—			2
Balance, March 31, 2021	$	913	$	39		$	206		$	296		$	1,559		$	67		$	50		$	274		$	3,404

As of March 31, 2022 and December 31, 2021, information about loans and the ALL by portfolio segment are summarized as follows:

(Dollars in thousands)	CRE		MF		C+I		ADL		RES		HELOC		CON		Unallocated		Total
March 31, 2022 Loan Balances
Individually evaluated for impairment	$	101	$	—	$	25	$	—	$	680	$	115	$	—	$	—	$	921
Collectively evaluated for impairment		76,296		8,900		28,434		17,423		234,593		6,454		4,988		—		377,088
Total	$	76,397	$	8,900	$	28,459	$	17,423	$	235,273	$	6,569	$	4,988	$	—	$	378,009
ALL related to the loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		894		78		218		116		2,188		62		86		—		3,642
Total	$	894	$	78	$	218	$	116	$	2,188	$	62	$	86	$	—	$	3,642
December 31, 2021 Loan Balances
Individually evaluated for impairment	$	104	$	—	$	28	$	—	$	722	$	115	$	—	$	—	$	969
Collectively evaluated for impairment		71,953		8,998		26,823		21,365		233,477		6,832		4,574		—		374,022
Total	$	72,057	$	8,998	$	26,851	$	21,365	$	234,199	$	6,947	$	4,574	$	—	$	374,991
ALL related to the loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		833		80		194		178		2,139		63		75		28		3,590
Total	$	833	$	80	$	194	$	178	$	2,139	$	63	$	75	$	28	$	3,590

Past Due Financing Receivables

The following is an aged analysis of past due loans by portfolio segment as of March 31, 2022:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	76,397	$	76,397	$	—
MF		—		—		—		—		8,900		8,900		—
C+I		—		—		—		—		28,459		28,459		—
ADL		—		—		—		—		17,423		17,423		—
RES		—		—		487		487		234,786		235,273		680
HELOC		122		16		115		253		6,316		6,569		115
CON		—		—		—		—		4,988		4,988		—
	$	122	$	16	$	602	$	740	$	377,269	$	378,009	$	795

The following is an aged analysis of past due loans by portfolio segment as of December 31, 2021:

(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	72,057	$	72,057	$	—
MF		—		—		—		—		8,998		8,998		—
C+I		—		—		—		—		26,851		26,851		—
ADL		—		—		—		—		21,365		21,365		—
RES		—		487		235		722		233,477		234,199		722
HELOC		117		129		—		246		6,701		6,947		115
CON		6		—		—		6		4,568		4,574		—
	$	123	$	616	$	235	$	974	$	374,017	$	374,991	$	837

Impaired Financing Receivables

The following table provides information on impaired loans:

	As of March 31, 2022						At March 31, 2022
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
CRE	$	—	$	—	$	—	$	—	$	—
MF		—		—		—		—		—
C+I		—		—		—		—		—
ADL		—		—		—		—		—
RES		680		680		—		701		1
HELOC		115		115		—		115		—
CON		—		—		—		—		—
Total impaired loans	$	795	$	795	$	—	$	816	$	1
.
	As of December 31, 2021						At March 31, 2021
With no related allowance recorded:
CRE	$	—	$	—	$	—	$	—	$	—
MF		—		—		—		—		—
C+I		—		—		—		—		—
ADL		—		—		—		—		—
RES		722		722		—		62		—
HELOC		115		115		—		—		—
CON		—		—		—		—		—
Total impaired loans	$	837	$	837	$	—	$	62	$	—

Financing Receivable Credit Quality Indicators

The following presents the internal risk rating of loans by portfolio segment as of March 31, 2022:

(Dollars in thousands)	Pass		Special Mention		Substandard		Total
CRE	$	73,619	$	2,677	$	101	$	76,397
MF		8,900		—		—		8,900
C+I		28,434		—		25		28,459
ADL		17,423		—		—		17,423
RES		234,593		—		680		235,273
HELOC		6,454		—		115		6,569
CON		4,988		—		—		4,988
Total	$	374,411	$	2,677	$	921	$	378,009

The following presents the internal risk rating of loans by portfolio segment as of December 31, 2021:

(Dollars in thousands)	Pass		Special Mention		Substandard		Total
CRE	$	69,252	$	2,701	$	104	$	72,057
MF		8,998		—		—		8,998
C+I		26,823		—		28		26,851
ADL		21,365		—		—		21,365
RES		233,477		—		722		234,199
HELOC		6,832		—		115		6,947
CON		4,574		—		—		4,574
Total	$	371,321	$	2,701	$	969	$	374,991