Loans and Allowance for Credit Losses on Loans (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans consisted of the following at September 30, 2024 and December 31, 2023:

	2024			2023
	(Dollars in thousands)
Commercial real estate (CRE)	$	85,696		$	86,566
Multifamily (MF)		5,824			7,582
Commercial and industrial (C+I)		24,096			25,511
Acquisition, development, and land (ADL)		13,599			17,520
1-4 family residential (RES)		279,832			268,943
Home equity line of credit (HELOC)		16,678			14,093
Consumer (CON)		12,266			9,816
Total loans		437,991			430,031
Allowance for credit losses on loans		(3,445	)		(3,390	)
Total loans, net	$	434,546		$	426,641

Summary of Impact of Adoption

The following table illustrates the impact of the adoption of ASU 2016-13:

	January 1, 2023
	As reported under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
	(Dollars in thousands)
ASSETS
Allowance for credit losses on loans:
Commercial real estate (CRE)	$	788	$	942	$	(154	)
Multifamily (MF)		55		54		1
Commercial and industrial (C+I)		273		184		89
Acquisition, development, and land (ADL)		120		138		(18	)
1-4 family residential (RES)		1,847		2,048		(201	)
Home equity line of credit (HELOC)		88		81		7
Consumer (CON)		114		100		14
Unallocated		1		34		(33	)
Allowance for credit losses on loans	$	3,286	$	3,581		(295	)
LIABILITIES
Allowance for credit losses on OBS credit exposures	$	308	$	18	$	290
STOCKHOLDERS' EQUITY
Retained earnings	$	36,253	$	36,248	$	5

Schedule of Allowance For Loans And Leases Receivable Classification

Changes in the ACL for the three and nine months ended September 30, 2024 and 2023, under the CECL model, by portfolio segment, are summarized as follows:

(Dollars in thousands)	CRE			MF			C+I		ADL			RES			HELOC		CON			Unallocated			Total
Balance, June 30, 2024	$	745		$	107		$	234	$	70		$	1,608		$	171	$	442		$	74		$	3,451
(Release) provision for credit losses on loans		(25	)		(47	)		3		8			44			3		61			(27	)		20
Charge-offs		—			—			—		—			—			—		(27	)		—			(27	)
Recoveries		—			—			—		—			—			—		1			—			1
Balance, September 30, 2024	$	720		$	60		$	237	$	78		$	1,652		$	174	$	477		$	47		$	3,445
Balance, December 31, 2023	$	830		$	76		$	236	$	105		$	1,601		$	156	$	357		$	29		$	3,390
(Release) provision for credit losses on loans		(110	)		(16	)		1		(27	)		51			18		145			18			80
Charge-offs		—			—			—		—			—			—		(27	)		—			(27	)
Recoveries		—			—			—		—			—			—		2			—			2
Balance, September 30, 2024	$	720		$	60		$	237	$	78		$	1,652		$	174	$	477		$	47		$	3,445
Balance, June 30, 2023	$	806		$	49		$	277	$	70		$	1,910		$	85	$	109		$	13		$	3,319
(Release) provision for credit losses on loans		(18	)		22			11		31			(174	)		76		95			(13	)		30
Charge-offs		—			—			—		—			—			—		—			—			—
Recoveries		—			—			—		—			—			—		—			—			—
Balance, September 30, 2023	$	788		$	71		$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349
Balance, December 31, 2022, Prior to Adoption of ASC 326	$	942		$	54		$	184	$	138		$	2,048		$	81	$	100		$	34		$	3,581
Impact of adopting ASC 326		(154	)		1			89		(18	)		(202	)		7		14			(32	)		(295	)
(Release) provision for credit losses on loans		—			16			15		(19	)		(110	)		73		92			(2	)		65
Charge-offs		—			—			—		—			—			—		(4	)		—			(4	)
Recoveries		—			—			—		—			—			—		2			—			2
Balance, September 30, 2023	$	788		$	71		$	288	$	101		$	1,736		$	161	$	204		$	—		$	3,349

Past Due Financing Receivables

The following is an aging analysis of past due loans by portfolio segment as of September 30, 2024 and December 31, 2023, including non-accrual loans without an ACL:

September 30, 2024:
(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	85,696	$	85,696	$	—
MF		—		—		—		—		5,824		5,824		—
C+I		—		—		—		—		24,096		24,096		—
ADL		—		—		—		—		13,599		13,599		—
RES		—		—		—		—		279,832		279,832		—
HELOC		—		—		—		—		16,678		16,678		—
CON		—		—		—		—		12,266		12,266		—
	$	—	$	—	$	—	$	—	$	437,991	$	437,991	$	—
December 31, 2023:
(Dollars in thousands)	30-59 Days		60-89 Days		90 + Days		Total Past Due		Current		Total Loans		Non-Accrual Loans
CRE	$	—	$	—	$	—	$	—	$	86,566	$	86,566	$	—
MF		—		—		—		—		7,582		7,582		—
C+I		—		—		—		—		25,511		25,511		—
ADL		—		—		—		—		17,520		17,520		—
RES		—		131		—		131		268,812		268,943		127
HELOC		—		—		14		14		14,079		14,093		14
CON		—		—		—		—		9,816		9,816		—
	$	—	$	131	$	14	$	145	$	429,886	$	430,031	$	141

Schedule of Risk Category of Loans by Portfolio Segment by Vintage Under CECL Methodology

Based upon the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of September 30, 2024 and December 31, 2023:

September 30, 2024:

(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
CRE:
Risk rating:
Pass	$	4,375	$	6,957	$	13,108	$	10,399	$	1,907	$	18,199	$	30,751	$	—	$	85,696
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CRE		4,375		6,957		13,108		10,399		1,907		18,199		30,751		—		85,696
MF:
Risk rating:
Pass		—		1,919		133		632		1,045		1,789		306		—		5,824
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total MF		—		1,919		133		632		1,045		1,789		306		—		5,824
C+I:
Risk rating:
Pass		3,354		5,150		5,361		1,815		3,192		2,616		2,434		—		23,922
Special mention		—		—		—		—		—		174		—		—		174
Substandard		—		—		—		—		—		—		—		—		—
Total C+I		3,354		5,150		5,361		1,815		3,192		2,790		2,434		—		24,096
ADL:
Risk rating:
Pass		3,826		9,179		227		367		—		—		—		—		13,599
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total ADL		3,826		9,179		227		367		—		—		—		—		13,599
RES:
Risk rating:
Pass		14,940		25,378		43,048		65,255		46,962		84,249		—		—		279,832
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total RES		14,940		25,378		43,048		65,255		46,962		84,249		—		—		279,832
HELOC:
Risk rating:
Pass		—		—		—		—		—		—		16,678		—		16,678
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total HELOC		—		—		—		—		—		—		16,678		—		16,678
CON:
Risk rating:
Pass		3,912		2,486		2,676		1,598		1,370		224		—		—		12,266
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CON		3,912		2,486		2,676		1,598		1,370		224		—		—		12,266
Total	$	30,407	$	51,069	$	64,553	$	80,066	$	54,476	$	107,251	$	50,169	$	—	$	437,991

December 31, 2023:

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
CRE:
Risk rating:
Pass	$	7,552	$	10,849	$	11,977	$	2,268	$	2,724	$	18,713	$	32,244	$	—	$	86,327
Special mention		—		—		—		—		—		239		—		—		239
Substandard		—		—		—		—		—		—		—		—		—
Total CRE		7,552		10,849		11,977		2,268		2,724		18,952		32,244		—		86,566
MF:
Risk rating:
Pass		—		145		5,157		1,081		—		852		347		—		7,582
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total MF		—		145		5,157		1,081		—		852		347		—		7,582
C+I:
Risk rating:
Pass		5,745		6,580		4,151		2,875		1,537		1,917		2,704		—		25,509
Special mention		—		—		2		—		—		—		—		—		2
Substandard		—		—		—		—		—		—		—		—		—
Total C+I		5,745		6,580		4,153		2,875		1,537		1,917		2,704		—		25,511
ADL:
Risk rating:
Pass		10,511		4,048		1,507		—		1,454		—		—		—		17,520
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total ADL		10,511		4,048		1,507		—		1,454		—		—		—		17,520
RES:
Risk rating:
Pass		19,533		43,517		64,226		50,675		20,021		70,844		—		—		268,816
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		127		—		—		127
Total RES		19,533		43,517		64,226		50,675		20,021		70,971		—		—		268,943
HELOC:
Risk rating:
Pass		—		—		—		—		—		—		14,079		—		14,079
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		14		—		14
Total HELOC		—		—		—		—		—		—		14,093		—		14,093
CON:
Risk rating:
Pass		2,902		3,145		1,966		1,512		215		76		—		—		9,816
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Total CON		2,902		3,145		1,966		1,512		215		76		—		—		9,816
Total	$	46,243	$	68,284	$	88,986	$	58,411	$	25,951	$	92,768	$	49,388	$	—	$	430,031