Loans And Leases (Tables)

3 Months Ended

Mar. 31, 2024

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

Schedule of Loan Portfolio

As of March 31, 2024 and December 31, 2023, the composition of the loan portfolio by portfolio segment was as follows:

	March 31, 2024		December 31, 2023
Real estate loans:
Construction, land development and other land loans	$	102,282	$	88,140
Secured by 1-4 family residential properties		74,361		76,200
Secured by multi-family residential properties		62,145		62,397
Secured by non-farm, non-residential properties		212,465		213,586
Commercial and industrial loans and leases (1)		57,112		60,515
Consumer loans:
Direct		5,590		5,938
Branch retail		7,794		8,670
Indirect		301,192		306,345
Total loans		822,941		821,791
Allowance for credit losses on loans and leases		10,436		10,507
Net loans	$	812,505	$	811,284

(1)Includes equipment financing leases, which totaled $12.5 million and $12.6 million as of March 31, 2024 and December 31, 2023, respectively.

Allowance for Credit Losses on Loans and Leases

The following tables present changes in the allowance for credit losses on loans and leases, as well as unfunded lending commitments, during the three months ended March 31, 2024 and 2023:

	As of and for the Three Months Ended March 31, 2024
	Construction, Land Development, and Other			Real Estate 1-4 Family			Real Estate Multi- Family			Non- Farm Non- Residential			Commercial and Industrial			Direct Consumer			Branch Retail			Indirect Consumer			Total
	(Dollars in Thousands)
Allowance for credit losses on loans and leases:
Beginning balance	$	565		$	591		$	415		$	1,425		$	513		$	64		$	436		$	6,498		$	10,507
Charge-offs		—			(2	)		—			—			—			(22	)		(22	)		(344	)		(390	)
Recoveries		—			23			—			—			—			100			54			30			207
Provision for (recovery of) credit losses		95			(80	)		(15	)		(75	)		(24	)		(74	)		(161	)		446			112
Allowance for credit losses on loans and leases	$	660		$	532		$	400		$	1,350		$	489		$	68		$	307		$	6,630		$	10,436
Allowance for credit losses on unfunded lending commitments:
Beginning balance	$	450		$	1		$	9		$	2		$	102		$	5		$	—		$	—		$	569
Provision for (recovery of) credit losses on unfunded lending commitments		(100	)		(1	)		(1	)		4			—			(14	)		—			—			(112	)
Allowance for credit losses on unfunded lending commitments	$	350		$	—		$	8		$	6		$	102		$	(9	)	$	—		$	—		$	457

	As of and for the Three Months Ended March 31, 2023
	Construction, Land Development, and Other			Real Estate 1-4 Family			Real Estate Multi- Family			Non- Farm Non- Residential			Commercial and Industrial			Direct Consumer			Branch Retail			Indirect Consumer			Total
	(Dollars in Thousands)
Allowance for credit losses on loans and leases:
Beginning balance	$	517		$	832		$	646		$	1,970		$	919		$	866		$	518		$	3,154		$	9,422
Impact of adopting CECL accounting guidance		(94	)		(39	)		(85	)		(147	)		(20	)		47			628			1,833			2,123
Charge-offs		—			(8	)		—			—			—			(215	)		(155	)		(156	)		(534	)
Recoveries		—			16			—			—			—			198			77			28			319
Provision for (recovery of) credit losses on loans and leases		97			(32	)		(52	)		(61	)		(117	)		(4	)		—			438			269
Allowance for credit losses on loans and leases	$	520		$	769		$	509		$	1,762		$	782		$	892		$	1,068		$	5,297		$	11,599
Allowance for credit losses on unfunded lending commitments:
Beginning balance	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Impact of adopting CECL accounting guidance		172			39			3			2			—			68			8			—			292
Provision for (recovery of) credit losses on unfunded lending commitments		—			—			—			—			—			—			—			—			—
Allowance for credit losses on unfunded lending commitments	$	172		$	39		$	3		$	2		$	—		$	68		$	8		$	—		$	292

Loans and Leases By Credit Quality Indicators

The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of March 31, 2024:

		March 31, 2024
		Loans at Amortized Cost Basis by Origination Year
		2024		2023		2022		2021		2020		Prior		Total
		(Dollars in Thousands)
Commercial:
Construction, land development and other land loans	Pass	$	1,088	$	8,391	$	47,121	$	44,385	$	785	$	512	$	102,282
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		—		—		—		—		—
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	1,088	$	8,391	$	47,121	$	44,385	$	785	$	512	$	102,282
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by multi-family residential properties	Pass	$	64	$	404	$	29,669	$	5,909	$	5,662	$	20,437	$	62,145
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		—		—		—		—		—
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	64	$	404	$	29,669	$	5,909	$	5,662	$	20,437	$	62,145
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by non-farm, non-residential properties	Pass	$	70	$	27,290	$	36,186	$	24,554	$	55,913	$	64,971	$	208,984
	Special Mention		—		—		314		494		341		406		1,555
	Substandard		—		—		—		72		150		1,704		1,926
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	70	$	27,290	$	36,500	$	25,120	$	56,404	$	67,081	$	212,465
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans and leases	Pass	$	1,117	$	10,577	$	4,901	$	14,224	$	2,798	$	22,741	$	56,358
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		114		95		51		494		754
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	1,117	$	10,577	$	5,015	$	14,319	$	2,849	$	23,235	$	57,112
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total commercial	Pass	$	2,339	$	46,662	$	117,877	$	89,072	$	65,158	$	108,661	$	429,769
	Special Mention		—		—		314		494		341		406		1,555
	Substandard		—		—		114		167		201		2,198		2,680
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
		$	2,339	$	46,662	$	118,305	$	89,733	$	65,700	$	111,265	$	434,004
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

		March 31, 2024
		Loans at Amortized Cost Basis by Origination Year
		2024		2023		2022		2021		2020		Prior		Total
		(Dollars in Thousands)
Consumer:
Secured by 1-4 family residential properties	Performing	$	1,227	$	4,109	$	18,852	$	14,765	$	6,596	$	27,989	$	73,538
	Non-performing		—		—		—		—		—		823		823
	Subtotal	$	1,227	$	4,109	$	18,852	$	14,765	$	6,596	$	28,812	$	74,361
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	2	$	2
Direct	Performing	$	706	$	2,008	$	990	$	1,155	$	454	$	277	$	5,590
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	706	$	2,008	$	990	$	1,155	$	454	$	277	$	5,590
	Current period gross charge-offs	$	—	$	—	$	—	$	20	$	2	$	—	$	22
Branch retail	Performing	$	—	$	—	$	—	$	1,863	$	2,466	$	3,465	$	7,794
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	—	$	—	$	—	$	1,863	$	2,466	$	3,465	$	7,794
	Current period gross charge-offs	$	—	$	—	$	—	$	4	$	1	$	17	$	22
Indirect	Performing	$	8,815	$	84,771	$	85,681	$	63,593	$	48,029	$	10,230	$	301,119
	Non-performing		—		—		—		54		19		—		73
	Subtotal	$	8,815	$	84,771	$	85,681	$	63,647	$	48,048	$	10,230	$	301,192
	Current period gross charge-offs	$	—	$	—	$	83	$	99	$	109	$	53	$	344
Total consumer	Performing	$	10,748	$	90,888	$	105,523	$	81,376	$	57,545	$	41,961	$	388,041
	Non-performing		—		—		—		54		19		823		896
		$	10,748	$	90,888	$	105,523	$	81,430	$	57,564	$	42,784	$	388,937
	Current period gross charge-offs	$	—	$	—	$	83	$	123	$	112	$	72	$	390

The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of December 31, 2023:

		December 31, 2023
		Loans at Amortized Cost Basis by Origination Year
		2023		2022		2021		2020		2019		Prior		Total
		(Dollars in Thousands)
Commercial:
Construction, land development and other land loans	Pass	$	7,913	$	37,068	$	41,800	$	804	$	—	$	555	$	88,140
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		—		—		—		—		—
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	7,913	$	37,068	$	41,800	$	804	$	—	$	555	$	88,140
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by multi-family residential properties	Pass	$	407	$	29,683	$	5,950	$	5,676	$	7,063	$	13,618	$	62,397
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		—		—		—		—		—
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	407	$	29,683	$	5,950	$	5,676	$	7,063	$	13,618	$	62,397
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Secured by non-farm, non-residential properties	Pass	$	26,521	$	36,141	$	23,551	$	56,404	$	18,127	$	46,261	$	207,005
	Special Mention		—		532		1,776		344		—		1,448		4,100
	Substandard		—		—		—		152		—		2,329		2,481
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	26,521	$	36,673	$	25,327	$	56,900	$	18,127	$	50,038	$	213,586
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans	Pass	$	10,948	$	6,187	$	14,586	$	2,593	$	1,565	$	22,614	$	58,493
	Special Mention		—		159		782		174		38		—		1,153
	Substandard		—		116		191		59		260		243		869
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	10,948	$	6,462	$	15,559	$	2,826	$	1,863	$	22,857	$	60,515
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total commercial	Pass	$	45,789	$	109,079	$	85,887	$	65,477	$	26,755	$	83,048	$	416,035
	Special Mention		—		691		2,558		518		38		1,448		5,253
	Substandard		—		116		191		211		260		2,572		3,350
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
		$	45,789	$	109,886	$	88,636	$	66,206	$	27,053	$	87,068	$	424,638
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

		December 31, 2023
		Loans at Amortized Cost Basis by Origination Year
		2023		2022		2021		2020		2019		Prior		Total
		(Dollars in Thousands)
Consumer:
Secured by 1-4 family residential properties	Performing	$	4,230	$	20,172	$	14,986	$	6,675	$	8,950	$	20,334	$	75,347
	Non-performing		—		—		—		—		—		853		853
	Subtotal	$	4,230	$	20,172	$	14,986	$	6,675	$	8,950	$	21,187	$	76,200
	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	97	$	97
Direct consumer	Performing	$	2,383	$	1,157	$	1,485	$	575	$	225	$	113	$	5,938
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	2,383	$	1,157	$	1,485	$	575	$	225	$	113	$	5,938
	Current period gross charge-offs	$	2	$	5	$	316	$	118	$	42	$	88	$	571
Branch retail	Performing	$	—	$	—	$	2,160	$	2,696	$	1,572	$	2,242	$	8,670
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	—	$	—	$	2,160	$	2,696	$	1,572	$	2,242	$	8,670
	Current period gross charge-offs	$	—	$	—	$	108	$	140	$	57	$	140	$	445
Indirect consumer	Performing	$	88,688	$	89,376	$	66,147	$	50,883	$	5,485	$	5,712	$	306,291
	Non-performing		—		—		54		—		—		—		54
	Subtotal	$	88,688	$	89,376	$	66,201	$	50,883	$	5,485	$	5,712	$	306,345
	Current period gross charge-offs	$	6	$	235	$	332	$	270	$	39	$	50	$	932
Total consumer:	Performing	$	95,301	$	110,705	$	84,778	$	60,829	$	16,232	$	28,401	$	396,246
	Non-performing		—		—		54		—		—		853		907
		$	95,301	$	110,705	$	84,832	$	60,829	$	16,232	$	29,254	$	397,153
	Current period gross charge-offs	$	8	$	240	$	756	$	528	$	138	$	375	$	2,045

Aging Analysis of Past Due Loans

The following table provides an aging analysis of past due loans by class as of March 31, 2024:

	As of March 31, 2024
	30-59 Days Past Due			60-89 Days Past Due			90 Days Or Greater			Total Past Due			Current			Total Loans			Recorded Investment > 90 Days And Accruing
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development    and other land loans	$	—		$	—		$	—		$	—		$	102,282		$	102,282		$	—
Secured by 1-4 family residential    properties		727			—			20			747			73,614			74,361			—
Secured by multi-family residential    properties		—			—			—			—			62,145			62,145			—
Secured by non-farm, non-residential    properties		—			—			1,289			1,289			211,176			212,465			—
Commercial and industrial loans		37			—			169			206			56,906			57,112			—
Consumer loans:								—
Direct		21			—			—			21			5,569			5,590			—
Branch retail		9			29			—			38			7,756			7,794			—
Indirect		277			82			73			432			300,760			301,192			—
Total	$	1,071		$	111		$	1,551		$	2,733		$	820,208		$	822,941		$	—
As a percentage of total loans		0.13	%		0.01	%		0.19	%		0.33	%		99.67	%		100.00	%

The following table provides an aging analysis of past due loans by class as of December 31, 2023:

	As of December 31, 2023
	30-59 Days Past Due			60-89 Days Past Due			90 Days Or Greater			Total Past Due			Current			Total Loans			Recorded Investment > 90 Days And Accruing
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development    and other land loans	$	—		$	—		$	—		$	—		$	88,140		$	88,140		$	—
Secured by 1-4 family residential    properties		820			177			23			1,020			75,180			76,200			—
Secured by multi-family residential    properties		—			—			—			—			62,397			62,397			—
Secured by non-farm, non-residential    properties		—			—			1,302			1,302			212,284			213,586			—
Commercial and industrial loans		89			34			147			270			60,245			60,515			—
Consumer loans:
Direct		42			—			—			42			5,896			5,938			—
Branch retail		39			1			—			40			8,630			8,670			—
Indirect		316			33			54			403			305,942			306,345			—
Total	$	1,306		$	245		$	1,526		$	3,077		$	818,714		$	821,791		$	—
As a percentage of total loans		0.15	%		0.03	%		0.19	%		0.37	%		99.63	%		100.00	%

Non-accruing Loans

The tables below present the amortized cost of loans on nonaccrual status and loans past due 90 days or more and still accruing interest as of March 31, 2024 and December 31, 2023. Also presented is the balance of loans on nonaccrual status at March 31, 2024 and December 31, 2023 for which there was no related allowance for credit losses recorded.

	Loans on Non-Accrual Status
	March 31, 2024
	(Dollars in Thousands)
	Total nonaccrual loans		Nonaccrual loans with no allowance for credit losses		Loans past due 90 days or more and still accruing
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		859		439		—
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,289		1,289		—
Commercial and industrial loans		172		51		—
Consumer loans:						—
Direct		—		—		—
Branch retail		—		—		—
Indirect		73		—		—
Total loans	$	2,393	$	1,779	$	—

	Loans on Non-Accrual Status
	December 31, 2023
	(Dollars in Thousands)
	Total nonaccrual loans		Nonaccrual loans with no allowance for credit losses		Loans past due 90 days or more and still accruing
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		891		462		—
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,302		1,314		—
Commercial and industrial loans		152		77		—
Consumer loans:						—
Direct		—		—		—
Branch retail		—		—		—
Indirect		55		—		—
Total loans	$	2,400	$	1,853	$	—

Schedule of Amortized Cost Basis of Collateral Dependent Loans

The following tables present the amortized cost basis of collateral dependent loans as of March 31, 2024 and December 31, 2023, which loans are individually evaluated to determine credit losses:

	March 31, 2024
	Real Estate		Other		Total
	(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		468		—		468
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,705		—		1,705
Commercial and industrial		—		99		99
Direct consumer		—		—		—
Total loans individually evaluated	$	2,173	$	99	$	2,272

	December 31, 2023
	Real Estate		Other		Total
	(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		485		—		485
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		2,333		—		2,333
Commercial and industrial		—		112		112
Direct consumer		—		—		—
Total loans individually evaluated	$	2,818	$	112	$	2,930