XML 27 R18.htm IDEA: XBRL DOCUMENT v3.22.2
Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Summary of major classifications of loans, by purpose code

Major classifications of loans, by purpose code, at June 30, 2022 and December 31, 2021, are summarized as follows:

 

 

 

June 30, 2022

 

 

Percent

 

 

December 31, 2021

 

 

Percent

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

113,234,591

 

 

 

37.05

%

 

$

98,433,124

 

 

 

36.27

%

Home equity

 

 

11,992,237

 

 

 

3.92

%

 

 

11,510,661

 

 

 

4.24

%

Multi-family

 

 

25,153,782

 

 

 

8.23

%

 

 

19,937,187

 

 

 

7.35

%

Commercial

 

 

105,226,393

 

 

 

34.43

%

 

 

89,830,611

 

 

 

33.10

%

Construction and land development

 

 

30,500,864

 

 

 

9.98

%

 

 

34,401,702

 

 

 

12.68

%

Total real estate loans

 

 

286,107,867

 

 

 

 

 

 

254,113,285

 

 

 

 

Consumer loans

 

 

1,410,605

 

 

 

0.46

%

 

 

1,373,761

 

 

 

0.51

%

Commercial and industrial loans

 

 

18,099,202

 

 

 

5.92

%

 

 

15,900,097

 

 

 

5.85

%

Total loans

 

 

305,617,674

 

 

 

100.00

%

 

 

271,387,143

 

 

 

100.00

%

Less: Allowance for loan losses

 

 

4,271,782

 

 

 

 

 

 

4,183,599

 

 

 

 

Deferred loan fees

 

 

1,004,155

 

 

 

 

 

 

899,096

 

 

 

 

Loans, net

 

$

300,341,737

 

 

 

 

 

$

266,304,448

 

 

 

 
Summary of allowance for loan losses

An analysis of the change in allowance for loan losses follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Beginning balance

 

$

4,211,089

 

 

$

4,087,400

 

 

$

4,183,599

 

 

$

4,085,719

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

(2,842

)

 

 

—

 

 

 

(2,842

)

 

 

(11,123

)

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Construction and land development

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total real estate loans

 

 

(2,842

)

 

 

—

 

 

 

(2,842

)

 

 

(11,123

)

Consumer loans

 

 

(28,469

)

 

 

(5,747

)

 

 

(37,102

)

 

 

(21,589

)

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total charge-offs

 

 

(31,311

)

 

 

(5,747

)

 

 

(39,944

)

 

 

(32,712

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

12,193

 

 

 

6,138

 

 

 

30,124

 

 

 

12,277

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Construction and land development

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,345

 

Total real estate loans

 

 

12,193

 

 

 

6,138

 

 

 

30,124

 

 

 

23,622

 

Consumer loans

 

 

948

 

 

 

1,242

 

 

 

2,014

 

 

 

5,154

 

Commercial and industrial loans

 

 

18,175

 

 

 

13,630

 

 

 

35,301

 

 

 

20,880

 

Total recoveries

 

 

31,316

 

 

 

21,010

 

 

 

67,439

 

 

 

49,656

 

Net recoveries

 

 

5

 

 

 

15,263

 

 

 

27,495

 

 

 

16,944

 

Provision for loan losses

 

 

60,688

 

 

 

16,347

 

 

 

60,688

 

 

 

16,347

 

Ending balance

 

$

4,271,782

 

 

$

4,119,010

 

 

$

4,271,782

 

 

$

4,119,010

 
Summary of allowances for loan losses and recorded investments in loans individually and collectively evaluated for impairment

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2022 and December 31, 2021:

 

 

 

Loans

 

 

Allowance for loan losses

 

 

 

Individually
evaluated
for impairment

 

 

Collectively
evaluated
for impairment

 

 

Individually
evaluated
for impairment

 

 

Collectively
evaluated
for impairment

 

June 30, 2022 -

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

1,322,646

 

 

$

111,911,945

 

 

$

—

 

 

$

1,529,019

 

Home equity

 

 

—

 

 

 

11,992,237

 

 

 

—

 

 

 

168,804

 

Multi-family

 

 

—

 

 

 

25,153,782

 

 

 

—

 

 

 

270,349

 

Commercial

 

 

—

 

 

 

105,226,393

 

 

 

—

 

 

 

1,819,726

 

Construction and development

 

 

8,746

 

 

 

30,492,118

 

 

 

—

 

 

 

334,691

 

Total real estate loans

 

 

1,331,392

 

 

 

284,776,475

 

 

 

—

 

 

 

4,122,589

 

Consumer loans

 

 

—

 

 

 

1,410,605

 

 

 

—

 

 

 

1,218

 

Commercial and industrial loans

 

 

—

 

 

 

18,099,202

 

 

 

—

 

 

 

124,200

 

Unallocated

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,775

 

Total

 

$

1,331,392

 

 

$

304,286,282

 

 

$

—

 

 

$

4,271,782

 

December 31, 2021 -

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

1,517,822

 

 

$

96,915,302

 

 

$

—

 

 

$

1,468,649

 

Home equity

 

 

—

 

 

 

11,510,661

 

 

 

—

 

 

 

174,579

 

Multi-family

 

 

—

 

 

 

19,937,187

 

 

 

—

 

 

 

288,455

 

Commercial

 

 

—

 

 

 

89,830,611

 

 

 

—

 

 

 

1,757,794

 

Construction and development

 

 

9,928

 

 

 

34,391,774

 

 

 

—

 

 

 

350,586

 

Total real estate loans

 

 

1,527,750

 

 

 

252,585,535

 

 

 

—

 

 

 

4,040,063

 

Consumer loans

 

 

—

 

 

 

1,373,761

 

 

 

—

 

 

 

1,798

 

Commercial and industrial loans

 

 

—

 

 

 

15,900,097

 

 

 

—

 

 

 

109,724

 

Unallocated

 

 

—

 

 

 

—

 

 

 

—

 

 

 

32,014

 

Total

 

$

1,527,750

 

 

$

269,859,393

 

 

$

—

 

 

$

4,183,599

 
Summary of Impaired loans

The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows:

 

 

 

Three Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

 

Interest
Income
Received

 

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

 

Interest
Income
Received

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

1,344,047

 

 

$

12,717

 

 

$

10,879

 

 

$

1,693,820

 

 

$

—

 

 

$

22,220

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,339,199

 

 

 

—

 

 

 

—

 

Construction and land development

 

 

8,949

 

 

 

72

 

 

 

38

 

 

 

5,347

 

 

 

44

 

 

 

229

 

Total real estate loans

 

 

1,352,996

 

 

 

12,789

 

 

 

10,917

 

 

 

3,038,366

 

 

 

44

 

 

 

22,449

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,352,996

 

 

$

12,789

 

 

$

10,917

 

 

$

3,038,366

 

 

$

44

 

 

$

22,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

 

Interest
Income
Received

 

 

Average
Recorded
Investment

 

 

Interest
Income
Recognized

 

 

Interest
Income
Received

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

1,401,972

 

 

$

32,016

 

 

$

30,441

 

 

$

1,572,102

 

 

$

21,765

 

 

$

46,112

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

797

 

 

 

 

 

 

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,386,126

 

 

 

—

 

 

 

—

 

Construction and land development

 

 

9,275

 

 

 

186

 

 

 

197

 

 

 

88,460

 

 

 

44

 

 

 

229

 

Total real estate loans

 

 

1,411,247

 

 

 

32,202

 

 

 

30,638

 

 

 

3,047,485

 

 

 

21,809

 

 

 

46,341

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,411,247

 

 

$

32,202

 

 

$

30,638

 

 

$

3,047,485

 

 

$

21,809

 

 

$

46,341

 

 
Summary of aging of the recorded investment in past due loans and nonaccrual loans

The following tables present the aging of the recorded investment in past due loans and nonaccrual loans as of June 30, 2022 and December 31, 2021, by class of loans:

 

 

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
or Greater
Past Due

 

 

Total
Past Due

 

 

Current

 

 

Total

 

 

Non-accrual

 

June 30, 2022 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

—

 

 

$

776,589

 

 

$

—

 

 

$

776,589

 

 

$

112,458,002

 

 

$

113,234,591

 

 

$

569,821

 

Home equity

 

 

42,865

 

 

 

—

 

 

 

—

 

 

 

42,865

 

 

 

11,949,372

 

 

 

11,992,237

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,153,782

 

 

 

25,153,782

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

105,226,393

 

 

 

105,226,393

 

 

 

—

 

Construction
   and land
   development

 

 

102,890

 

 

 

8,746

 

 

 

—

 

 

 

111,636

 

 

 

30,389,228

 

 

 

30,500,864

 

 

 

—

 

Total real
   estate loans

 

 

145,755

 

 

 

785,335

 

 

 

—

 

 

 

931,090

 

 

 

285,176,777

 

 

 

286,107,867

 

 

 

569,821

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,410,605

 

 

 

1,410,605

 

 

 

—

 

Commercial and
   industrial loans

 

 

109,561

 

 

 

—

 

 

 

—

 

 

 

109,561

 

 

 

17,989,641

 

 

 

18,099,202

 

 

 

—

 

 

 

$

255,316

 

 

$

785,335

 

 

$

—

 

 

$

1,040,651

 

 

$

304,577,023

 

 

$

305,617,674

 

 

$

569,821

 

December 31, 2021 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

1,330,647

 

 

$

75,169

 

 

$

—

 

 

$

1,405,816

 

 

$

97,027,308

 

 

$

98,433,124

 

 

$

354,295

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,510,661

 

 

 

11,510,661

 

 

 

—

 

Multi-family

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,937,187

 

 

 

19,937,187

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

89,830,611

 

 

 

89,830,611

 

 

 

—

 

Construction
   and land
   development

 

 

—

 

 

 

9,928

 

 

 

60,111

 

 

 

70,039

 

 

 

34,331,663

 

 

 

34,401,702

 

 

 

60,111

 

Total real
   estate loans

 

 

1,330,647

 

 

 

85,097

 

 

 

60,111

 

 

 

1,475,855

 

 

 

252,637,430

 

 

 

254,113,285

 

 

 

414,406

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,373,761

 

 

 

1,373,761

 

 

 

—

 

Commercial and
   industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,900,097

 

 

 

15,900,097

 

 

 

—

 

 

 

$

1,330,647

 

 

$

85,097

 

 

$

60,111

 

 

$

1,475,855

 

 

$

269,911,288

 

 

$

271,387,143

 

 

$

414,406

 
Summary of loans not meeting the criteria are analyzed individually are considered to be pass rated loans, based on the most recent analysis performed, the risk category of loans by class of loans

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of June 30, 2022 and December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

 

 

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Doubtful

 

 

Loss

 

 

Total

 

June 30, 2022 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

111,489,530

 

 

$

465,553

 

 

$

1,279,508

 

 

$

—

 

 

$

—

 

 

$

113,234,591

 

Home equity

 

 

11,992,237

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,992,237

 

Multi-family

 

 

25,153,782

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,153,782

 

Commercial

 

 

96,703,572

 

 

 

5,682,211

 

 

 

2,840,610

 

 

 

—

 

 

 

—

 

 

 

105,226,393

 

Construction and land
   development

 

 

27,768,229

 

 

 

2,662,920

 

 

 

69,715

 

 

 

—

 

 

 

—

 

 

 

30,500,864

 

Total real estate loans

 

 

273,107,350

 

 

 

8,810,684

 

 

 

4,189,833

 

 

 

—

 

 

 

—

 

 

 

286,107,867

 

Consumer loans

 

 

1,410,605

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,410,605

 

Commercial and industrial loans

 

 

18,099,202

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,099,202

 

 

 

$

292,617,157

 

 

$

8,810,684

 

 

$

4,189,833

 

 

$

—

 

 

$

—

 

 

$

305,617,674

 

December 31, 2021 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

95,421,741

 

 

$

1,764,789

 

 

$

1,246,594

 

 

$

—

 

 

$

—

 

 

$

98,433,124

 

Home equity

 

 

11,510,661

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,510,661

 

Multi-family

 

 

19,937,187

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,937,187

 

Commercial

 

 

78,797,687

 

 

 

8,075,262

 

 

 

2,957,662

 

 

 

—

 

 

 

—

 

 

 

89,830,611

 

Construction and land
   development

 

 

31,347,154

 

 

 

2,920,406

 

 

 

134,142

 

 

 

—

 

 

 

—

 

 

 

34,401,702

 

Total real estate loans

 

 

237,014,430

 

 

 

12,760,457

 

 

 

4,338,398

 

 

 

—

 

 

 

—

 

 

 

254,113,285

 

Consumer loans

 

 

1,373,761

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,373,761

 

Commercial and industrial loans

 

 

15,900,097

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,900,097

 

 

 

$

254,288,288

 

 

$

12,760,457

 

 

$

4,338,398

 

 

$

—

 

 

$

—

 

 

$

271,387,143