Loans and Related Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2020

Loans and Related Allowance for Credit Losses [Abstract]

Loan Portfolio by Class

The following table presents the loan portfolio by class at December 31, 2020 and 2019.

(Dollars in thousands)
	December 31, 2020		December 31, 2019
Commercial, financial and agricultural	$	73,057	$	51,785
Real estate - commercial		122,698		126,613
Real estate - construction		61,051		46,459
Real estate - mortgage		141,438		150,538
Obligations of states and political subdivisions		18,550		16,377
Personal		5,867		8,818
Total	$	422,661	$	400,590

Allowance for Loan Losses and Recorded Investments in Loans Receivable

The following tables summarize loans and the activity in the allowance for loan losses by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended December 31, 2020 and 2019:

(Dollars in thousands)							Obligations
	Commercial,						of states
	financial and		Real estate-		Real estate-		and political		Real estate-
	agricultural		commercial		construction		subdivisions		mortgage		Personal		Total
Year Ended
December 31, 2020
Balance, beginning of period	$	321	$	754	$	718	$	17	$	1,081	$	70	$	2,961
Provision for loan losses		(13)		152		442		11		96		33		721
Charge-offs		(7)		—		—		—		(7)		(42)		(56)
Recoveries		1		2		426		—		30		9		468
Balance, end of period	$	302	$	908	$	1,586	$	28	$	1,200	$	70	$	4,094
December 31, 2019
Balance, beginning of period	$	275	$	1,074	$	558	$	20	$	1,035	$	72	$	3,034
Provision for loan losses		45		(619)		(135)		(3)		105		34		(573)
Charge-offs		(2)		(15)		—		—		(66)		(54)		(137)
Recoveries		3		314		295		—		7		18		637
Balance, end of period	$	321	$	754	$	718	$	17	$	1,081	$	70	$	2,961

(Dollars in thousands)							Obligations
	Commercial,						of states
	financial and		Real estate-		Real estate-		and political		Real estate-
	agricultural		commercial		construction		subdivisions		mortgage		Personal		Total
December 31, 2020
Loans allocated by:
individually evaluated for impairment	$	—	$	3,483	$	—	$	—	$	744	$	—	$	4,227
acquired with credit deterioration		—		339		—		—		623		—		962
collectively evaluated for impairment		73,057		118,876		61,051		18,550		140,071		5,867		417,472
	$	73,057	$	122,698	$	61,051	$	18,550	$	141,438	$	5,867	$	422,661
Allowance for loan losses allocated by:
individually evaluated for impairment	$	—	$	—	$	—	$	—	$	2	$	—	$	2
acquired with credit deterioration		—		—		—		—		—		—		—
collectively evaluated for impairment		302		908		1,586		28		1,198		70		4,092
	$	302	$	908	$	1,586	$	28	$	1,200	$	70	$	4,094
December 31, 2019
Loans allocated by:
individually evaluated for impairment	$	—	$	1,206	$	—	$	—	$	1,296	$	14	$	2,516
acquired with credit deterioration		—		366		—		—		704		—		1,070
collectively evaluated for impairment		51,785		125,041		46,459		16,377		148,538		8,804		397,004
	$	51,785	$	126,613	$	46,459	$	16,377	$	150,538	$	8,818	$	400,590
Allowance for loan losses allocated by:
individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
acquired with credit deterioration		—		—		—		—		—		—		—
collectively evaluated for impairment		321		754		718		17		1,081		70		2,961
	$	321	$	754	$	718	$	17	$	1,081	$	70	$	2,961

Impaired Loans by Loan Portfolio Class

The following tables summarize information regarding impaired loans by portfolio class as of December 31, 2020 and December 31, 2019:

(Dollars in thousands)	As of December 31, 2020						As of December 31, 2019
	Recorded		Unpaid Principal		Related		Recorded		Unpaid Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans
With no related allowance recorded:
Real estate - commercial	$	3,483	$	3,580	$	—	$	1,206	$	1,304	$	—
Acquired with credit deterioration		339		386		—		366		395		—
Real estate – construction		—		894		—		—		1,054		—
Real estate - mortgage		666		1,396		—		1,296		2,006		—
Acquired with credit deterioration		623		801		—		704		840		—
Personal		—		—		—		14		14		—
With an allowance recorded:
Real estate - mortgage	$	78	$	77	$	2	$	—	$	—	$	—
Total:
Real estate - commercial	$	3,483	$	3,580	$	—	$	1,206	$	1,304	$	—
Acquired with credit deterioration		339		386		—		366		395		—
Real estate - construction		—		894		—		—		1,054		—
Real estate – mortgage		744		1,473		2		1,296		2,006		—
Acquired with credit deterioration		623		801		—		704		840		—
Personal		—		—		—		14		14		—
	$	5,189	$	7,134	$	2	$	3,586	$	5,613	$	—

(Dollars in thousands)	Year Ended December 31, 2020						Year Ended December 31, 2019
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Income		Investment		Recognized		Income
Impaired Loans
With no related allowance recorded:
Commercial, financial and agricultural	$	234	$	—	$	—	$	549	$	22	$	15
Real estate - commercial		2,291		20		38		1,058		45		28
Acquired with credit deterioration		352		—		—		455		—		—
Real estate - construction				—		—		14		—		—
Real estate - mortgage		860		16		44		1,238		17		45
Acquired with credit deterioration		660		—		—		838		—		—
Personal		2		—		—		16		—		—
With an allowance recorded:
Real estate - mortgage	$	98	$	—	$	—	$	—	$	—	$	—
Total:
Commercial, financial and agricultural	$	234	$	—	$	—	$	549	$	22	$	15
Real estate - commercial		2,291		20		38		1,058		45		28
Acquired with credit deterioration		352		—		—		455		—		—
Real estate - construction		—		—		—		14		—		—
Real estate - mortgage		958		16		44		1,238		17		45
Acquired with credit deterioration		660		—		—		838		—		—
Personal		2		—		—		16		—		—
	$	4,497	$	36	$	82	$	4,168	$	84	$	88

Nonaccrual Loans by Classes of the Loan Portfolio

The following table presents non-accrual loans by classes of the loan portfolio as of December 31, 2020 and December 31, 2019:

(Dollars in thousands)
	December 31, 2020		December 31, 2019
Non-accrual loans:
Real estate - commercial	$	41	$	903
Real estate - mortgage		381		902
Personal		—		14
Total	$	422	$	1,819

Loan Portfolio Summarized by the Past Due Status

													Loans
													Past Due
													Greater
(Dollars in thousands)							Greater						than 89
			30‑59 Days		60‑89 Days		than 89		Total Past				Days and
	Current		Past Due(2)		Past Due		Days		Due		Total Loans		Accruing(1)
As of December 31, 2020
Commercial, financial and agricultural	$	73,028	$	7	$	—	$	22	$	29	$	73,057	$	22
Real estate - commercial		122,318		—		—		41		41		122,359		—
Real estate - construction		61,051		—		—		—		—		61,051		—
Real estate - mortgage		139,842		351		453		169		973		140,815		—
Obligations of states and political subdivisions		18,550		—		—		—		—		18,550		—
Personal		5,853		—		14		—		14		5,867		—
Subtotal		420,642		358		467		232		1,057		421,699		22
Loans acquired with credit deterioration
Real estate - commercial		293		—		46		—		46		339		—
Real estate - mortgage		481		50		—		92		142		623		92
Subtotal		774		50		46		92		188		962		92
	$	421,416	$	408	$	513	$	324	$	1,245	$	422,661	$	114

													Loans
													Past Due
													Greater
(Dollars in thousands)							Greater						than 89
			30‑59 Days		60‑89 Days		than 89		Total Past				Days and
	Current		Past Due(2)		Past Due		Days		Due		Total Loans		Accruing(1)
As of December 31, 2019
Commercial, financial and agricultural	$	51,725	$	60	$	—	$	—	$	60	$	51,785	$	—
Real estate - commercial		126,180		19		—		48		67		126,247		—
Real estate - construction		46,172		287		—		—		287		46,459		—
Real estate - mortgage		148,366		348		149		971		1,468		149,834		359
Obligations of states and political subdivisions		16,377		—		—		—		—		16,377		—
Personal		8,725		55		—		38		93		8,818		24
Subtotal		397,545		769		149		1,057		1,975		399,520		383
Loans acquired with credit deterioration
Real estate - commercial		366		—		—		—		—		366		—
Real estate - mortgage		330		371		—		3		374		704		3
Subtotal		696		371		—		3		374		1,070		3
	$	398,241	$	1,140	$	149	$	1,060	$	2,349	$	400,590	$	386

(1) These loans are guaranteed, or well secured, and there is an effective means of collection in process.

(2) Loans are considered past due when the borrower is in arrears on two or more monthly payments.

Summary of Loans Whose Terms Have Been Modified

The following tables summarize loans whose terms were modified, resulting in troubled debt restructurings during 2020 and 2019.

(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
Year ended December 31, 2020
Accruing troubled debt restructurings:
Real estate - commercial	2	$	3,161	$	3,161	$	3,143
Real estate - mortgage	1		4		4		4
	3	$	3,165	$	3,165	$	3,147

The troubled debt restructurings described above had no specific allowance for loan losses and resulted in no charge-offs during the year ending December 31, 2020.

(Dollars in thousands)		Pre-Modification		Post-Modification
	Number of	Outstanding		Outstanding
	Contracts	Recorded Investment		Recorded Investment		Recorded Investment
Year ended December 31, 2019
Accruing troubled debt restructurings:
Real estate - commercial	1	$	306	$	326	$	306
Real estate - mortgage	1		9		9		5
	2	$	315	$	335	$	311

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2020 and December 31, 2019. The increase in the special mention category at December 31, 2020 compared to December 31, 2019 was predominantly the result of downgrading participated hospitality and recreational facility relationships from pass to special mention in 2020 due to the pandemic.

(Dollars in thousands)			Special
As of December 31, 2020	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	71,983	$	495	$	579	$	—	$	73,057
Real estate - commercial		99,828		15,198		7,631		41		122,698
Real estate - construction		36,332		24,644		75		—		61,051
Real estate - mortgage		139,787		289		1,317		45		141,438
Obligations of states and political subdivisions		18,550		—		—		—		18,550
Personal		5,867		—		—		—		5,867
Total	$	372,347	$	40,626	$	9,602	$	86	$	422,661

(Dollars in thousands)			Special
As of December 31, 2019	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	46,725	$	4,080	$	980	$	—	$	51,785
Real estate - commercial		113,851		5,668		7,046		48		126,613
Real estate - construction		44,954		287		1,218		—		46,459
Real estate - mortgage		148,164		327		1,951		96		150,538
Obligations of states and political subdivisions		16,377		—		—		—		16,377
Personal		8,804		—		14		—		8,818
Total	$	378,875	$	10,362	$	11,209	$	144	$	400,590