Loans (Tables)

6 Months Ended

Jun. 30, 2020

Loans

Major Classifications of Loans

Major classifications of loans are as follows:

	June 30,		December 31,
	2020		2019
Commercial
Development	$	14,852	$	18,222
Real estate		74,369		68,621
Commercial and industrial		25,394		13,681
Residential real estate and consumer
One-to-four family owner-occupied		28,535		29,380
One-to-four family investor-owned		29,175		28,077
Multifamily		25,426		29,531
Consumer		4,055		4,230
Subtotal	$	201,806	$	191,742
Deferred loan fees		(591)		(187)
Allowance for loan losses		(2,542)		(2,264)
Net loans	$	198,673	$	189,291

Summary of the Activity in the Allowance for Loan Losses

A summary of the activity in the allowance for loan losses by portfolio segment is as follows:

			Residential real
			estate
Three Months Ended	Commercial		and consumer		Total
Balance at March 31, 2020	$	1,301	$	1,006	$	2,307
Provision for loan losses		232		(17)		215
Loans charged off		—		—		—
Recoveries of loans previously charged off		19		1		20
Balance at June 30, 2020	$	1,552	$	990	$	2,542
Balance at March 31, 2019	$	984	$	1,204	$	2,188
Provision for loan losses		69		16		85
Loans charged off		—		(21)		(21)
Recoveries of loans previously charged off		—		—		—
Balance at June 30, 2019	$	1,053	$	1,199	$	2,252

			Residential real
			estate
Six Months Ended	Commercial		and consumer		Total
Balance at December 31, 2019	$	1,251	$	1,013	$	2,264
Provision for loan losses		282		(27)		255
Loans charged off		—		—		—
Recoveries of loans previously charged off		19		4		23
Balance at June 30, 2020	$	1,552	$	990	$	2,542
Balance at December 31, 2018	$	940	$	1,178	$	2,118
Provision for loan losses		113		42		155
Loans charged off		—		(21)		(21)
Recoveries of loans previously charged off		—		—		—
Balance at June 30, 2019	$	1,053	$	1,199	$	2,252

Information about how loans were evaluated for impairment and the related allowance for loan losses follows:

			Residential real
			estate and
June 30, 2020	Commercial		consumer		Total
Loans:
Individually evaluated for impairment	$	763	$	1,658	$	2,421
Collectively evaluated for impairment		113,852		85,533		199,385
Total loans	$	114,615	$	87,191	$	201,806
Allowance for loan losses:
Individually evaluated for impairment	$	142	$	77	$	219
Collectively evaluated for impairment		1,410		913		2,323
Total allowance for loan losses	$	1,552	$	990	$	2,542

			Residential real
			estate and
December 31, 2019	Commercial		consumer		Total
Loans:
Individually evaluated for impairment	$	798	$	1,457	$	2,255
Collectively evaluated for impairment		99,726		89,761		189,487
Total loans	$	100,524	$	91,218	$	191,742
Allowance for loan losses:
Individually evaluated for impairment	$	158	$	77	$	235
Collectively evaluated for impairment		1,093		936		2,029
Total allowance for loan losses	$	1,251	$	1,013	$	2,264

Impairment and the Related Allowance for Loan Losses

Information regarding impaired loans follows:

	Principal		Recorded		Related		Average		Interest
As of  June 30, 2020	Balance		Investment		Allowance		Investment		Recognized
Loans with related allowance for loan losses:
Commercial
Commercial and industrial	$	712	$	705	$	142	$	714	$	—
Residential real estate and consumer
One-to-four family investor-owned		407		384		77		409		—
Total loans with related allowance for loan losses		1,119		1,089		219		1,123		—
Loans with no related allowance for loan losses:
Commercial
Commercial and industrial		63		58		—		66		—
Residential real estate and consumer
One-to-four family owner-occupied		918		915		—		922		3
One-to-four family investor-owned		339		297		—		338		—
Consumer		62		62		—		63		—
Total loans with no related allowance for loan losses		1,382		1,332		—		1,389		3
Total impaired loans	$	2,501	$	2,421	$	219	$	2,512	$	3

	Principal		Recorded		Related		Average		Interest
As of December 31, 2019	Balance		Investment		Allowance		Investment		Recognized
Loans with related allowance for loan losses:
Commercial
Commercial and industrial	$	729	$	729	$	158	$	740	$	19
Residential real estate and consumer
One-to-four family investor-owned		415		403		77		412		—
Total loans with related allowance for loan losses		1,144		1,132		235		1,152		19
Loans with no related allowance for loan losses:
Commercial
Commercial and industrial		73		69		—		77		5
Residential real estate and consumer
One-to-four family owner-occupied		795		744		—		754		5
One-to-four family investor-owned		243		221		—		231		—
Consumer		114		89		—		98		—
Total loans with no related allowance for loan losses		1,225		1,123		—		1,160		10
Total impaired loans	$	2,369	$	2,255	$	235	$	2,312	$	29

Information Regarding the Credit Quality Indicators

Information regarding the credit quality indicators most closely monitored for commercial loans by class follows:

			Special
	Pass		Mention		Substandard		Doubtful		Totals
June 30, 2020
Development	$	14,852	$	—	$	—	$	—	$	14,852
Real estate		73,162		569		638		—		74,369
Commercial and industrial		22,878		2,331		185		—		25,394
One-to-four family investor-owned		28,501		—		674		—		29,175
Multifamily		25,426		—		—		—		25,426
Totals	$	164,819	$	2,900	$	1,497	$	—	$	169,216
December 31, 2019
Development	$	18,222	$	—	$	—	$	—	$	18,222
Real estate		68,036		585		—		—		68,621
Commercial and industrial		10,888		2,779		14		—		13,681
One-to-four family investor-owned		27,453		—		624		—		28,077
Multifamily		29,531		—		—		—		29,531
Totals	$	154,130	$	3,364	$	638	$	—	$	158,132

Information regarding the credit quality indicators most closely monitored for residential real estate and consumer loans by class follows:

	Performing		Non-performing		Totals
June 30, 2020
One-to-four family owner-occupied	$	28,535	$	—	$	28,535
Consumer		4,055		—		4,055
	$	32,590	$	—	$	32,590
December 31, 2019
One-to-four family owner-occupied	$	28,636	$	744	$	29,380
Consumer		4,141		89		4,230
	$	32,777	$	833	$	33,610

Loan Aging Information

Loan aging information follows:

			Loans Past Due		Loans Past Due				Nonaccrual
	Current Loans		30-89 Days		90+ Days		Total Loans		Loans
June 30, 2020
Commercial
Development	$	14,852	$	—	$	—	$	14,852	$	—
Real estate		74,369		—		—		74,369		638
Commercial and industrial		25,394		—		—		25,394		185
Residential real estate and consumer
One-to-four family owner-occupied		28,535		—		—		28,535		—
One-to-four family investor-owned		29,175		—		—		29,175		648
Multifamily		25,426		—		—		25,426		—
Consumer		4,055		—		—		4,055		—
Total	$	201,806	$	—	$	—	$	201,806	$	1,471

			Loans Past Due		Loans Past Due				Nonaccrual
	Current Loans		30-89 Days		90+ Days		Total Loans		Loans
December 31, 2019
Commercial
Development	$	18,222	$	—	$	—	$	18,222	$	—
Real estate		68,621		—		—		68,621		—
Commercial and industrial		13,681		—		—		13,681		14
Residential real estate and consumer
One-to-four family owner-occupied		29,034		—		346		29,380		346
One-to-four family investor-owned		28,077		—		—		28,077		624
Multifamily		29,531		—		—		29,531		—
Consumer		4,230		—		—		4,230		86
Total	$	191,396	$	—	$	346	$	191,742	$	1,070