Loans Held for Investment (Tables)

6 Months Ended

Jun. 30, 2024

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Components of Loans

The components of loans were as follows at June 30, 2024 and December 31, 2023:

	June 30, 2024			December 31, 2023
	(dollars in thousands)
Residential mortgage loans (1-4 family):
Fixed	$	97,806		$	94,267
Variable		159,513			154,630
Construction		26,298			15,764
Total residential mortgage loans		283,617			264,661
Commercial loans
Real estate		228,458			206,267
SBA Paycheck Protection Program		418			566
Other		80,830			69,053
Total commerical loans		309,706			275,886
Consumer loans:
Home equity		101,554			98,331
Other consumer		29,035			27,740
Total consumer loans		130,589			126,071
Total loans held for investment		723,912			666,618
Less:
Undisbursed portion of mortgage loans		(135	)		(118	)
Net deferred loan costs (fees)		(910	)		(816	)
Allowance for credit losses		(5,773	)		(6,203	)
Total loans held for investment, net	$	717,094		$	659,481

Summary of Investment in Loans by Credit Quality Indicators by Year of Origin

Loans with a risk rating of 1 through 6 are classified as “Pass” rated credits in the following tables. Nonrated loans are also classified as “Pass.” The following table presents the Bank's recorded investment in loans by credit quality indicators by year of origin as of June 30, 2024.

	Term Loans
1-4 Family Residential	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
Pass	$	10,341	$	60,184	$	71,165	$	33,027	$	22,695	$	51,255	$	—	$	248,667
Special Mention		—		—		259		—		—		63		—		322
Substandard		—		2,545		2,352		1,062		140		2,231		—		8,330
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	10,341	$	62,729	$	73,776	$	34,089	$	22,835	$	53,549	$	—	$	257,319
Residential Construction	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	8,203	$	17,892	$	203	$	—	$	—	$	—	$	—	$	26,298
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	8,203	$	17,892	$	203	$	—	$	—	$	—	$	—	$	26,298
Commercial Real Estate	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	27,104	$	45,840	$	40,024	$	11,534	$	20,532	$	69,726	$	11,495	$	226,255
Special Mention		—		—		1,264		—		—		791		—		2,055
Substandard		—		—		—		—		—		148		—		148
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	27,104	$	45,840	$	41,288	$	11,534	$	20,532	$	70,665	$	11,495	$	228,458
Commercial	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	27,745	$	4,370	$	8,085	$	8,934	$	5,090	$	4,707	$	16,897	$	75,828
Special Mention		—		—		330		55		139		1,477		690		2,691
Substandard		—		428		10		296		842		449		577		2,602
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		21		—		—		106		127
Total	$	27,745	$	4,798	$	8,425	$	9,306	$	6,071	$	6,633	$	18,270	$	81,248
Home Equity	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	2,135	$	7,994	$	1,765	$	82	$	67	$	1,147	$	86,692	$	99,882
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		52		—		—		3		1,617		1,672
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	2,135	$	7,994	$	1,817	$	82	$	67	$	1,150	$	88,309	$	101,554
Other Consumer	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	8,956	$	11,636	$	4,413	$	1,714	$	737	$	227	$	1,018	$	28,701
Special Mention		193		26		—		—		—		—		—		219
Substandard		40		39		26		—		—		1		—		106
Doubtful		9		—		—		—		—		—		—		9
Loss		—		—		—		—		—		—		—		—
Total	$	9,198	$	11,701	$	4,439	$	1,714	$	737	$	228	$	1,018	$	29,035
All Loans	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	84,484	$	147,916	$	125,655	$	55,291	$	49,121	$	127,062	$	116,102	$	705,631
Special Mention		193		26		1,853		55		139		2,331		690		5,287
Substandard		40		3,012		2,440		1,358		982		2,832		2,194		12,858
Doubtful		9		-		-		-		-		-		-		9
Loss		—		—		—		21		—		—		106		127
Total Loans	$	84,726	$	150,954	$	129,948	$	56,725	$	50,242	$	132,225	$	119,092	$	723,912

Loans with a risk rating of 1 through 6 are classified as “Pass” rated credits in the following tables. Nonrated loans are also classified as “Pass.” The following table presents the Bank's recorded investment in loans by credit quality indicators by year of origin as of December 31, 2023.

	Term Loans
1-4 Family Residential	2023		2022		2021		2020		2019		Prior		Revolving Lines		Total
Pass	$	58,213	$	71,746	$	35,005	$	22,795	$	6,493	$	47,727	$	291	$	242,270
Special Mention		—		261		—		—		—		95		—		356
Substandard		808		1,767		653		328		124		2,591		—		6,271
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	59,021	$	73,774	$	35,658	$	23,123	$	6,617	$	50,413	$	291	$	248,897
Residential Construction	2023		2022		2021		2020		2019		Prior		Revolving		Total
Pass	$	14,585	$	1,179	$	—	$	—	$	—	$	—	$	—	$	15,764
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	14,585	$	1,179	$	—	$	—	$	—	$	—	$	—	$	15,764
Commercial Real Estate	2023		2022		2021		2020		2019		Prior		Revolving		Total
Pass	$	42,867	$	43,365	$	11,703	$	17,491	$	14,490	$	52,597	$	12,537	$	195,050
Special Mention		—		—		—		—		—		9,394		—		9,394
Substandard		—		—		—		1,823		—		—		—		1,823
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	42,867	$	43,365	$	11,703	$	19,314	$	14,490	$	61,991	$	12,537	$	206,267
Commercial	2023		2022		2021		2020		2019		Prior		Revolving		Total
Pass	$	9,265	$	2,120	$	5,936	$	4,457	$	769	$	1,292	$	41,555	$	65,394
Special Mention		—		—		—		286		208		—		1,281		1,775
Substandard		69		326		—		129		80		—		1,405		2,009
Doubtful		—		—		—		—		—		—		18		18
Loss		—		97		25		—		—		146		155		423
Total	$	9,334	$	2,543	$	5,961	$	4,872	$	1,057	$	1,438	$	44,414	$	69,619
Home Equity	2023		2022		2021		2020		2019		Prior		Revolving		Total
Pass	$	10,399	$	6,726	$	6,218	$	4,119	$	1,861	$	5,118	$	62,361	$	96,802
Special Mention		—		—		—		—		—		—		66		66
Substandard		—		680		—		—		175		130		441		1,426
Doubtful		—		—		—		—		—		—		33		33
Loss		—		—		—		—		—		—		4		4
Total	$	10,399	$	7,406	$	6,218	$	4,119	$	2,036	$	5,248	$	62,905	$	98,331
Other Consumer	2023		2022		2021		2020		2019		Prior		Revolving		Total
Pass	$	8,334	$	1,557	$	1,144	$	227	$	166	$	56	$	16,209	$	27,693
Special Mention		27		—		—		—		—		—		—		27
Substandard		13		—		—		—		—		—		7		20
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total	$	8,374	$	1,557	$	1,144	$	227	$	166	$	56	$	16,216	$	27,740
All Loans	2023		2022		2021		2020		2019		Prior		Revolving		Total
Pass	$	143,663	$	126,693	$	60,006	$	49,089	$	23,779	$	106,790	$	132,953	$	642,973
Special Mention		27		261		-		286		208		9,489		1,347		11,618
Substandard		890		2,773		653		2,280		379		2,721		1,853		11,549
Doubtful		-		-		-		-		-		-		51		51
Loss		—		97		25		—		—		146		159		427
Total Loans	$	144,580	$	129,824	$	60,684	$	51,655	$	24,366	$	119,146	$	136,363	$	666,618

Summary of Changes in the Allowance for Credit Losses

The following table outlines the changes in the allowance for credit losses by category, the allowance for loans individually and collectively evaluated, and the balances of loans individually and collectively evaluated, for the six months ended June 30, 2024:

	1-4 Family					Commercial		Other			Home		Other
	Residential			Construction		Real Estate		Commercial			Equity		Consumer			Total
						(dollars in thousands)
Allowance
Beginning balance, January 1, 2024	$	1,210		$	1	$	2,218	$	1,586		$	536	$	652		$	6,203
Charge-offs		(37	)		—		—		(921	)		—		(142	)		(1,100	)
Recoveries		6			2		—		123			—		19			150
Provision for Credit Loss		103			27		61		164			94		71			520
Reallocations		—			—		—		—			—		—			—
Balance at end of period	$	1,282		$	30	$	2,279	$	952		$	630	$	600		$	5,773
Ending allowance balance for loans individually evaluated	$	455		$	—	$	148	$	327		$	33	$	46		$	1,009
Ending allowance balance for loans collectively evaluated	$	827		$	30	$	2,131	$	625		$	597	$	554		$	4,764
Loans Receivable
Total period-end balance	$	257,319		$	26,298	$	228,458	$	81,248		$	101,554	$	29,035		$	723,912
Balance of loans individually evaluated	$	7,668		$	—	$	148	$	965		$	941	$	56		$	9,778
Balance of loans collectively evaluated	$	249,651		$	26,298	$	228,310	$	80,283		$	100,613	$	28,979		$	714,134

The following table outlines the changes in the allowance for credit losses by category, the allowance for loans individually and collectively evaluated, and the balances of loans individually and collectively evaluated, for the twelve months ended December 31, 2023:

	1-4 Family						Commercial		Other			Home			Other
	Residential			Construction			Real Estate		Commercial			Equity			Consumer			Total
							(dollars in thousands)
Allowance
Beginning balance, January 1, 2023	$	839		$	3		$	880	$	4,303		$	385		$	888		$	7,298
Charge-offs		(5	)		—			—		(1,277	)		(47	)		(478	)		(1,807	)
Recoveries		—			—			3		30			—			30			63
Provision for Credit Loss		—			—			—		649			—			—			649
Reallocations		376			(2	)		1,335		(2,119	)		198			212			—
Balance at end of year	$	1,210		$	1		$	2,218	$	1,586		$	536		$	652		$	6,203
Ending allowance balance for loans individually evaluated	$	361		$	—		$	—	$	492		$	—		$	58		$	911
Ending allowance balance for loans collectively evaluated	$	849		$	1		$	2,218	$	1,094		$	536		$	594		$	5,292
Loans Receivable
Total period-end balance	$	248,897		$	15,764		$	206,267	$	69,619		$	98,331		$	27,740		$	666,618
Balance of loans individually evaluated	$	6,173		$	—		$	—	$	1,795		$	723		$	109		$	8,800
Balance of loans collectively evaluated	$	242,724		$	15,764		$	206,267	$	67,824		$	97,608		$	27,631		$	657,818

Summary of Loan Class of Past Due and Non-accrual Loans

The following tables present a summary by loan class of past due and non-accrual loans as of June 30, 2024 and December 31, 2023 (dollars in thousands):

					Greater Than								Past Due>
	30-59 Days		60-89 Days		90 Days		Total				Total		90 Days and
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing
June 30, 2024
1-4 family residential	$	4,245	$	1,378	$	4,255	$	9,878	$	247,441	$	257,319	$	—
Construction		643		—		—		643		25,655		26,298		—
Commercial real estate		—		—		148		148		228,310		228,458		—
SBA Paycheck Protection Program		—		—		—		—		418		418
Other commercial		179		149		745		1,073		79,757		80,830		—
Home equity		1,356		425		357		2,138		99,416		101,554		—
Other consumer		196		22		47		265		28,770		29,035		—
Total	$	6,619	$	1,974	$	5,552	$	14,145	$	709,767	$	723,912	$	—

	June 30, 2024
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
1-4 family residential	$	3,812	$	3,856	$	7,668
Construction		—		—		—
Commercial real estate		—		148		148
SBA Paycheck Protection Program		—		—		—
Other commercial		462		503		965
Home equity		891		50		941
Other consumer		2		54		56
Total	$	5,167	$	4,611	$	9,778

					Greater Than								Past Due>
	30-59 Days		60-89 Days		90 Days		Total				Total		90 Days and
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing
December 31, 2023
1-4 family residential	$	1,820	$	1,126	$	2,858	$	5,804	$	243,093	$	248,897	$	—
Construction		—		—		—		—		15,764		15,764		—
Commercial real estate		—		—		—		—		206,267		206,267		—
SBA Paycheck Protection Program		41		—		—		41		525		566
Other commercial		648		79		1,007		1,734		67,319		69,053		—
Home equity		1,135		593		396		2,124		96,207		98,331		—
Other consumer		273		171		5		449		27,291		27,740		—
Total	$	3,917	$	1,969	$	4,266	$	10,152	$	656,466	$	666,618	$	—

	December 31, 2023
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
1-4 family residential	$	2,226	$	3,108	$	5,334
Construction		—		—		—
Commercial real estate		426		—		426
SBA Paycheck Protection Program		—		—		—
Other commercial		422		892		1,314
Home equity		561		—		561
Other consumer		9		21		30
Total	$	3,644	$	4,021	$	7,665