Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Loans and Allowance for Loan Losses

Schedule of categories of loans

Categories of loans include:

	September 30,		December 31,
	2021		2020
	(In thousands)
Commercial loans	$	99,880	$	103,277
Commercial real estate		266,023		246,167
Residential real estate		89,280		85,789
Installment loans		6,936		8,258
Total gross loans		462,119		443,491
Less allowance for loan losses		(4,123)		(5,113)
Total loans	$	457,996	$	438,378

Schedule of allowance for loan losses and recorded investment in loans

Allowance for Loan Losses and Recorded Investment in Loans

As of and for the three and nine month periods ended September 30, 2021

			Commercial
	Commercial		Real Estate		Residential		Installment		Total
	(In thousands)
Allowance for loan losses:
Balance, July 1, 2021	$	1,140	$	1,710	$	1,353	$	339	$	4,542
Provision (credit) charged to expense		(249)		(155)		(34)		38		(400)
Losses charged off		—						(31)		(31)
Recoveries		3		—		—		9		12
Balance, September 30, 2021	$	894	$	1,555	$	1,319	$	355	$	4,123
Balance, January 1, 2021	$	1,397	$	1,821	$	1,471	$	424	$	5,113
Provision (credit) charged to expense		(428)		(266)		(133)		(28)		(855)
Losses charged off		(78)		—		(26)		(69)		(173)
Recoveries		3		—		7		28		38
Balance, September 30, 2021	$	894	$	1,555	$	1,319	$	355	$	4,123
Allocation:
Ending balance: individually evaluated for impairment	$	—	$	85	$	—	$	—	$	85
Ending balance: collectively evaluated for impairment	$	894	$	1,470	$	1,319	$	355	$	4,038
Loans:
Ending balance: individually evaluated for impairment	$	—	$	2,640	$	—	$	—	$	2,640
Ending balance: collectively evaluated for impairment	$	99,880	$	263,383	$	89,280	$	6,936	$	459,479

Allowance for Loan Losses and Recorded Investment in Loans

As of and for the three and nine month period ended September 30, 2020

					Residential
			Commercial		Real
	Commercial		Real Estate		Estate		Installment		Total
	(In thousands)
Allowance for loan losses:
Balance, July 1, 2020	$	2,344	$	751	$	600	$	320	$	4,015
Provision charged to expense		(1,031)		1,202		988		174		1,333
Losses charged off		(5)		(63)		(21)		(55)		(144)
Recoveries		13		—		1		10		24
Balance, September 30, 2020	$	1,321	$	1,890	$	1,568	$	449	$	5,228
Balance, January 1, 2020	$	568	$	792	$	572	$	299	$	2,231
Provision charged to expense		777		1,288		1,027		212		3,304
Losses charged off		(47)		(190)		(33)		(115)		(385)
Recoveries		23		—		2		53		78
Balance, September 30, 2020	$	1,321	$	1,890	$	1,568	$	449	$	5,228
Allocation:
Ending balance: individually evaluated for impairment	$	4	$	21	$	—	$	—	$	25
Ending balance: collectively evaluated for impairment	$	1,317	$	1,869	$	1,568	$	449	$	5,203
Loans:
Ending balance: individually evaluated for impairment	$	22	$	614	$	525	$	134	$	1,295
Ending balance: collectively evaluated for impairment	$	100,438	$	244,729	$	88,093	$	8,721	$	441,981

Allowance for Loan Losses and Recorded Investment in Loans

As of December 31, 2020

			Commercial
	Commercial		Real Estate		Residential		Installment		Total
	(In thousands)
Allowance for loan losses:
Ending balance: individually evaluated for impairment	$	—	$	1	$	––	$	––	$	1
Ending balance: collectively evaluated for impairment	$	1,397	$	1,820	$	1,471	$	424	$	5,112
Loans:
Ending balance: individually evaluated for impairment	$	80	$	182	$	114	$	—	$	376
Ending balance: collectively evaluated for impairment	$	103,197	$	245,985	$	85,675	$	8,258	$	443,115

Schedule of portfolio quality indicators

The following tables show the portfolio quality indicators.

	September 30, 2021
			Commercial
Loan Class	Commercial		Real Estate		Residential		Installment		Total
	(In thousands)
Pass Grade	$	99,880	$	263,166	$	89,280	$	6,936	$	459,262
Special Mention		—		217		—		—		217
Substandard		—		2,640		—		—		2,640
Doubtful		—		—		—		—		—
	$	99,880	$	266,023	$	89,280	$	6,936	$	462,119

	December 31, 2020
			Commercial
Loan Class	Commercial		Real Estate		Residential		Installment		Total
	(In thousands)
Pass Grade	$	103,181	$	239,862	$	85,675	$	8,258	$	436,976
Special Mention		15		3,422		—		—		3,437
Substandard		81		2,883		114		—		3,078
Doubtful		—		—		—		—		—
	$	103,277	$	246,167	$	85,789	$	8,258	$	443,491

Schedule of loan portfolio aging analysis

The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the current and past year to date periods presented.

Loan Portfolio Aging Analysis

As of September 30, 2021

	30-59 Days		60‑89 Days		Greater
	Past Due		Past Due		Than 90				Total Past
	and		and		Days and		Non		Due and				Total Loans
	Accruing		Accruing		Accruing		Accrual		Non Accrual		Current		Receivable
	(In thousands)
Commercial	$	—	$	—	$	—	$	—	$	—	$	99,880	$	99,880
Commercial real estate		—		38		—		2,591		2,629		263,394		266,023
Residential		101		79		—		279		459		88,821		89,280
Installment		4		—		—		—		4		6,932		6,936
Total	$	105	$	117	$	—	$	2,870	$	3,092	$	459,027	$	462,119

Loan Portfolio Aging Analysis

As of December 31, 2020

	30‑59 Days		60‑89 Days		Greater
	Past Due		Past Due		Than 90				Total Past
	and		and		Days and		Non		Due and				Total Loans
	Accruing		Accruing		Accruing		Accrual		Non Accrual		Current		Receivable
	(In thousands)
Commercial	$	—	$	—	$	—	$	83	$	83	$	103,194	$	103,277
Commercial real estate		—		—		—		98		98		246,069		246,167
Residential		120		59		—		445		624		85,165		85,789
Installment		7		20		—		—		27		8,231		8,258
Total	$	127	$	79	$	—	$	626	$	832	$	442,659	$	443,491

Schedule of impaired loans

Impaired Loans

							For the three months ended				For the nine months ended
		As of September 30, 2021					September 30, 2021				September 30, 2021
			Unpaid				Average		Interest		Average		Interest
	Recorded		Principal		Specific		Investment in		Income		Investment in		Income
	Balance		Balance		Allowance		Impaired Loans		Recognized		Impaired Loans		Recognized
	(In thousands)
Loans without a specific valuation allowance:
Commercial	$	—	$	—	$	—	$	—	$	2	$	156	$	3
Commercial real estate		151		151		—		158		—		—		—
Residential		—		—		—		—		—		—		—
Installment		—		—		—		—		—		—		—
		151		151		—		158		2		156		3
Loans with a specific valuation allowance:
Commercial		—		—		—		—		—		—		—
Commercial real estate		2,489		2,489		85		2,489		—		2,489		—
Residential		—		—		—		—		—		—		––
Installment		––		––		––		––		—		—		—
		2,489		2,489		85		2,489		—		2,489		—
Total:
Commercial	$	—	$	—	$	—	$	—	$	2	$	—	$	—
Commercial real estate	$	2,640	$	2,640	$	85	$	85	$	—	$	2,645	$	3
Residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Installment	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Impaired Loans

							For the three months ended				For the nine months ended
		As of December 31, 2020					September 30, 2020				September 30, 2020
			Unpaid				Average		Interest		Average		Interest
	Recorded		Principal		Specific		Investment in		Income		Investment in		Income
	Balance		Balance		Allowance		Impaired Loans		Recognized		Impaired Loans		Recognized
	(In thousands)
Loans without a specific valuation allowance:
Commercial	$	80	$	80	$	—	$	—	$	(5)	$	—	$	1
Commercial real estate		110		196		—		593		9		589		14
Residential		114		121		—		525		7		493		21
Installment		—		14		—		150		1		151		5
		304		411		—		1,268		12		1,233		41
Loans with a specific valuation allowance:
Commercial		—		—		—		23		—		24		1
Commercial real estate		72		72		1		92		3		92		3
Residential		––		—		—		—		––		—		—
Installment		––		—		—		––		––		––		—
		72		72		1		115		3		116		4
Total:
Commercial	$	80	$	80	$	—	$	23	$	(5)	$	24	$	2
Commercial real estate	$	182	$	268	$	1	$	685	$	12	$	681	$	17
Residential	$	114	$	121	$	—	$	525	$	7	$	493	$	21
Installment	$	—	$	14	$	—	$	150	$	1	$	151	$	5

Schedule of troubled debt restructurings on financing receivables

	Three Months ended September 30, 2021
		Pre- Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment
	(In thousands)
Commercial	—	$	—	$	—
Commercial real estate	—		—		—
Residential	—		—		—
Installment	—		—		—

	Three Months Ended September 30, 2021
	Interest						Total
	Only		Term		Combination		Modification
	(In thousands)
Commercial	$	—	$	—	$	—	$	—
Commercial real estate		—		—		—		—
Residential		—		—		—		—
Consumer		—		—		—		—

	Nine Months ended September 30, 2021
		Pre- Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment
	(In thousands)
Commercial	—	$	—	$	—
Commercial real estate	—		—		—
Residential	—		—		—
Installment	—		—		—

	Nine Months Ended September 30, 2021
	Interest						Total
	Only		Term		Combination		Modification
	(In thousands)
Commercial	$	—	$	—	$	—	$	—
Commercial real estate		—		—		—		—
Residential		—		—		—		—
Consumer		—		—		—		—

	Three Months ended September 30, 2020
		Pre- Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment
	(In thousands)
Commercial	––	$	––	$	––
Commercial real estate	––		––		––
Residential	––		––		––
Installment	––		––		––

	Three Months Ended September 30, 2020
	Interest						Total
	Only		Term		Combination		Modification
	(In thousands)
Commercial	$	—	$	––	$	—	$	––
Commercial real estate		––		––		––		––
Residential		––		––		––		––
Consumer		––		––		––		––

	Nine Months ended September 30, 2020
		Pre- Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment
	(In thousands)
Commercial	3	$	67	$	67
Commercial real estate	1		86		86
Residential	––		––		––
Installment	––		––		––

	Nine Months Ended September 30, 2020
	Interest						Total
	Only		Term		Combination		Modification
	(In thousands)
Commercial	$	––	$	23	$	44	$	67
Commercial real estate		––		86		––		87
Residential		––		––		––		––
Consumer		––		––		––		––