Loans Held for Investment (Tables)

9 Months Ended

Sep. 30, 2024

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Components of Loans

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

	September 30, 2024			December 31, 2023
	(dollars in thousands)
Residential mortgage loans (1-4 family):
Fixed	$	97,307		$	94,267
Variable		158,672			154,630
Construction		29,005			15,764
Total residential mortgage loans		284,984			264,661
Commercial loans
Real estate		230,219			206,267
SBA Paycheck Protection Program		395			566
Other		82,154			69,053
Total commerical loans		312,768			275,886
Consumer loans:
Home equity		105,771			98,331
Other consumer		27,835			27,740
Total consumer loans		133,606			126,071
Total loans held for investment		731,358			666,618
Less:
Undisbursed portion of mortgage loans		(168	)		(118	)
Net deferred loan costs (fees)		(895	)		(816	)
Allowance for credit losses		(5,824	)		(6,203	)
Total loans held for investment, net	$	724,471		$	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 September 30, 2024 and gross charge-offs for the nine months ended September 30, 2024.

	Term Loans
1-4 Family Residential	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
Pass	$	12,999	$	62,744	$	68,516	$	31,650	$	21,852	$	49,706	$	—	$	247,467
Special Mention		—		—		259		—		—		34		—		293
Substandard		—		2,507		2,433		1,134		140		2,005		—		8,219
Doubtful		—		—		—		—		—		—		—		—
Total	$	12,999	$	65,251	$	71,208	$	32,784	$	21,992	$	51,745	$	—	$	255,979
Residential Construction	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	15,082	$	13,923	$	—	$	—	$	—	$	—	$	—	$	29,005
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	15,082	$	13,923	$	—	$	—	$	—	$	—	$	—	$	29,005
Commercial Real Estate	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	35,710	$	46,151	$	38,709	$	11,404	$	17,372	$	67,608	$	13,117	$	230,071
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		148		—		148
Doubtful		—		—		—		—		—		—		—		—
Total	$	35,710	$	46,151	$	38,709	$	11,404	$	17,372	$	67,756	$	13,117	$	230,219
Commercial	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	28,677	$	4,483	$	6,444	$	8,280	$	5,179	$	4,142	$	20,327	$	77,532
Special Mention		—		—		1,424		—		—		1,433		141		2,998
Substandard		—		394		302		—		716		—		454		1,866
Doubtful		—		—		—		—		—		—		153		153
Total	$	28,677	$	4,877	$	8,170	$	8,280	$	5,895	$	5,575	$	21,075	$	82,549
Home Equity	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	4,012	$	7,797	$	1,694	$	77	$	64	$	1,088	$	88,876	$	103,608
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		48		—		—		12		2,103		2,163
Doubtful		—		—		—		—		—		—		—		—
Total	$	4,012	$	7,797	$	1,742	$	77	$	64	$	1,100	$	90,979	$	105,771
Other Consumer	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	9,318	$	10,943	$	3,930	$	1,483	$	596	$	14	$	1,194	$	27,478
Special Mention		190		25		—		—		—		—		—		215
Substandard		—		41		11		15		—		1		—		68
Doubtful		74		—		—		—		—		—		—		74
Total	$	9,582	$	11,009	$	3,941	$	1,498	$	596	$	15	$	1,194	$	27,835
All Loans	2024		2023		2022		2021		2020		Prior		Revolving		Total
Pass	$	105,798	$	146,041	$	119,293	$	52,894	$	45,063	$	122,558	$	123,514	$	715,161
Special Mention		190		25		1,683		—		—		1,467		141		3,506
Substandard		—		2,942		2,794		1,149		856		2,166		2,557		12,464
Doubtful		74		—		—		—		—		—		153		227
Total Loans	$	106,062	$	149,008	$	123,770	$	54,043	$	45,919	$	126,191	$	126,365	$	731,358
Gross charge-offs	$	—	$	36	$	313	$	45	$	231	$	178	$	562	$	1,365

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 and gross charge-offs for the year ended December 31, 2024.

	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		—		—		—		—		—		—		—		—
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		—		—		—		—		—		—		—		—
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		—		—		—		—		—		—		—		—
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		—		97		25		—		—		146		173		441
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		—		—		—		—		—		—		37		37
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		—		—		—		—		—		—		—		—
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		—		97		25		—		—		146		210		478
Total Loans	$	144,580	$	129,824	$	60,684	$	51,655	$	24,366	$	119,146	$	136,363	$	666,618
Gross charge-offs	$	27	$	116	$	38	$	34	$	64	$	83	$	1,445	$	1,807

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 nine months ended September 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		(139	)		—		—		(1,040	)		—		(186	)		(1,365	)
Recoveries		6			2		—		128			—		30			166
Provision for Credit Loss		205			41		98		213			156		107			820
Reallocations		—			—		—		—			—		—			—
Balance at end of period	$	1,282		$	44	$	2,316	$	887		$	692	$	603		$	5,824
Ending allowance balance for loans individually evaluated	$	507		$	—	$	—	$	207		$	139	$	46		$	899
Ending allowance balance for loans collectively evaluated	$	775		$	44	$	2,316	$	680		$	553	$	557		$	4,925
Loans Receivable
Total period-end balance	$	255,979		$	29,005	$	230,219	$	82,549		$	105,771	$	27,835		$	731,358
Balance of loans individually evaluated	$	9,250		$	—	$	148	$	730		$	1,427	$	153		$	11,708
Balance of loans collectively evaluated	$	246,729		$	29,005	$	230,071	$	81,819		$	104,344	$	27,682		$	719,650

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 September 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
September 30, 2024
1-4 family residential	$	—	$	4,582	$	6,567	$	11,149	$	244,830	$	255,979	$	—
Construction		—		—		—		—		29,005		29,005		—
Commercial real estate		489		—		148		637		229,582		230,219		—
SBA Paycheck Protection Program		—		—		—		—		395		395
Other commercial		321		119		46		486		81,668		82,154		—
Home equity		1,159		995		656		2,810		102,961		105,771		—
Other consumer		219		40		54		313		27,522		27,835		—
Total	$	2,188	$	5,736	$	7,471	$	15,395	$	715,963	$	731,358	$	—

	September 30, 2024
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
1-4 family residential	$	5,351	$	3,899	$	9,250
Construction		—		—		—
Commercial real estate		148		—		148
SBA Paycheck Protection Program		—		—		—
Other commercial		—		46		46
Home equity		1,321		166		1,487
Other consumer		10		50		60
Total	$	6,830	$	4,161	$	10,991

					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