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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2021
Loans and Allowance for Loan Losses [Abstract]  
Outstanding Loans By Segment Type
The following is a summary of the balances in each class of the Company’s loan portfolio as of the dates indicated:

(dollars in thousands)
  
December 31, 2021
    
December 31, 2020
  
Mortgage loans on real estate:
            
Residential 1-4 family
  
$
130,776
    
$
122,800
  
Commercial - owner occupied
    
198,413
      
153,955
  
Commercial - non-owner occupied
    
184,190
      
162,896
  
Multifamily
    
19,050
      
22,812
  
Construction
    
58,440
      
43,732
  
Second mortgages
    
7,877
      
11,178
  
Equity lines of credit
    
48,665
      
50,746
  
Total mortgage loans on real estate
    
647,411
      
568,119
  
Commercial and industrial loans
    
68,690
      
141,746
  
Consumer automobile loans
    
85,023
      
80,390
  
Other consumer loans
    
33,418
      
37,978
  
Other  (1)
    
8,984
      
8,067
  
Total loans, net of deferred fees
    
843,526
      
836,300
  
Less:  Allowance for loan losses
    
9,865
      
9,541
  
Loans, net of allowance and deferred fees (2)
  
$
833,661
    
$
826,759
  

(1)
Overdrawn accounts are reclassified as loans and included in the Other catergory in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $304 thousand and $271 thousand at December 31, 2021 and 2020, respectively.
(2)
Net deferred loan costs totaled $1.3 million and $2.1 million at December 31, 2021 and 2020, respectively.
Acquired Loans
The outstanding principal balance and the carrying amount of total acquired loans included in the consolidated balance sheets are as follows:

(dollars in thousands)
  
December 31, 2021
    
December 31, 2020
  
Outstanding principal balance
  
$
5,087
    
$
8,671
  
Carrying amount
    
5,087
      
8,602
  

The Company did not have any outstanding principal balance or related carrying amount of purchased credit-impaired loans as of December 31, 2021 and 2020, respectively. The following table presents changes in the accretable yield on purchased credit impaired loans, for which the Company applies FASB ASC 310-30:

(dollars in thousands)
  
December 31, 2021
    
December 31, 2020
  
Balance at January 1
  
$
-
    
$
72
  
Accretion
    
-
      
(156
)
Other changes, net
    
-
      
84
  
Balance at end of period
  
$
-
    
$
-
  
Credit Quality Information
The following tables present credit quality exposures by internally assigned risk ratings as of the dates indicated:

Credit Quality Information
  
As of December 31, 2021
  
(dollars in thousands)
  
Pass
    
OAEM
    
Substandard
    
Doubtful
    
Total
  
Mortgage loans on real estate:
                              
Residential 1-4 family
  
$
130,584
    
$
-
    
$
192
    
$
-
    
$
130,776
  
Commercial - owner occupied
    
195,512
      
788
      
2,113
      
-
      
198,413
  
Commercial - non-owner occupied
    
183,093
      
434
      
663
      
-
      
184,190
  
Multifamily
    
19,050
      
-
      
-
      
-
      
19,050
  
Construction
    
57,224
      
218
      
998
      
-
      
58,440
  
Second mortgages
    
7,877
      
-
      
-
      
-
      
7,877
  
Equity lines of credit
    
48,665
      
-
      
-
      
-
      
48,665
  
Total mortgage loans on real estate
  
$
642,005
    
$
1,440
    
$
3,966
    
$
-
    
$
647,411
  
Commercial and industrial loans
    
68,261
      
-
      
429
      
-
      
68,690
  
Consumer automobile loans
    
85,002
      
-
      
21
      
-
      
85,023
  
Other consumer loans
    
33,418
      
-
      
-
      
-
      
33,418
  
Other
    
8,984
      
-
      
-
      
-
      
8,984
  
Total
  
$
837,670
    
$
1,440
    
$
4,416
    
$
-
    
$
843,526
  

Credit Quality Information
  
As of December 31, 2020
  
(dollars in thousands)
  
Pass
    
OAEM
    
Substandard
    
Doubtful
    
Total
  
Mortgage loans on real estate:
                              
Residential 1-4 family
  
$
122,621
    
$
-
    
$
179
    
$
-
    
$
122,800
  
Commercial - owner occupied
    
148,738
      
2,462
      
2,755
      
-
      
153,955
  
Commercial - non-owner occupied
    
162,148
      
748
      
-
      
-
      
162,896
  
Multifamily
    
22,812
      
-
      
-
      
-
      
22,812
  
Construction
    
42,734
      
998
      
-
      
-
      
43,732
  
Second mortgages
    
11,178
      
-
      
-
      
-
      
11,178
  
Equity lines of credit
    
50,746
      
-
      
-
      
-
      
50,746
  
Total mortgage loans on real estate
  
$
560,977
    
$
4,208
    
$
2,934
    
$
-
    
$
568,119
  
Commercial and industrial loans
    
141,391
      
355
      
-
      
-
      
141,746
  
Consumer automobile loans
    
79,997
      
-
      
393
      
-
      
80,390
  
Other consumer loans
    
37,978
      
-
      
-
      
-
      
37,978
  
Other
    
8,067
      
-
      
-
      
-
      
8,067
  
Total
  
$
828,410
    
$
4,563
    
$
3,327
    
$
-
    
$
836,300
  
Past Due Loans The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection.

Age Analysis of Past Due Loans as of December 31, 2021
(dollars in thousands)
  
30 - 59
Days Past
Due
    
60 - 89
Days Past
Due
    
90 or More
Days Past
Due and
still
Accruing
    
Nonaccrual (2)
    
Total
Current
Loans (1)
    
Total
Loans
  
Mortgage loans on real estate:
                                    
Residential 1-4 family
  
$
120
    
$
-
    
$
-
    
$
191
    
$
130,465
    
$
130,776
  
Commercial - owner occupied
    
-
      
-
      
-
      
-
      
198,413
      
198,413
  
Commercial - non-owner occupied
    
-
      
-
      
-
      
113
      
184,077
      
184,190
  
Multifamily
    
-
      
-
      
-
      
-
      
19,050
      
19,050
  
Construction
    
-
      
-
      
-
      
-
      
58,440
      
58,440
  
Second mortgages
    
24
      
-
      
-
      
-
      
7,853
      
7,877
  
Equity lines of credit
    
51
      
-
      
-
      
-
      
48,614
      
48,665
  
Total mortgage loans on real estate
  
$
195
    
$
-
    
$
-
    
$
304
    
$
646,912
    
$
647,411
  
Commercial and industrial loans
    
37
      
-
      
169
      
174
      
68,310
      
68,690
  
Consumer automobile loans
    
814
      
118
      
296
      
-
      
83,795
      
85,023
  
Other consumer loans
    
1,284
      
439
      
550
      
-
      
31,145
      
33,418
  
Other
    
31
      
3
      
10
      
-
      
8,940
      
8,984
  
Total
  
$
2,361
    
$
560
    
$
1,025
    
$
478
    
$
839,102
    
$
843,526
  

(1)
For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due.
(2)
For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column.

In the table above, the past due totals include small business and student loans with principal and interest amounts that are 97 - 100% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $1.4 million at December 31, 2021.

Age Analysis of Past Due Loans as of December 31, 2020
(dollars in thousands)
  
30 - 59
Days Past
Due
    
60 - 89
Days Past
Due
    
90 or More
Days Past
Due and
still
Accruing
    
Nonaccrual (2)
    
Total
Current
Loans (1)
    
Total
Loans
  
Mortgage loans on real estate:
                                    
Residential 1-4 family
  
$
478
    
$
164
    
$
-
    
$
311
    
$
121,847
    
$
122,800
  
Commercial - owner occupied
    
-
      
-
      
-
      
903
      
153,052
      
153,955
  
Commercial - non-owner occupied
    
-
      
-
      
-
      
-
      
162,896
      
162,896
  
Multifamily
    
-
      
-
      
-
      
-
      
22,812
      
22,812
  
Construction
    
-
      
88
      
-
      
-
      
43,644
      
43,732
  
Second mortgages
    
41
      
-
      
-
      
-
      
11,137
      
11,178
  
Equity lines of credit
    
-
      
-
      
-
      
-
      
50,746
      
50,746
  
Total mortgage loans on real estate
  
$
519
    
$
252
    
$
-
    
$
1,214
    
$
566,134
    
$
568,119
  
Commercial and industrial loans
    
753
      
-
      
-
      
-
      
140,993
      
141,746
  
Consumer automobile loans
    
1,159
      
190
      
196
      
-
      
78,845
      
80,390
  
Other consumer loans
    
1,120
      
555
      
548
      
-
      
35,755
      
37,978
  
Other
    
24
      
3
      
-
      
-
      
8,040
      
8,067
  
Total
  
$
3,575
    
$
1,000
    
$
744
    
$
1,214
    
$
829,767
    
$
836,300
  

(1)
For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due.
(2)
For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column.
Nonaccrual Loans
The following table presents loans in nonaccrual status by class of loan as of the dates indicated:

(dollars in thousands)
  
December 31, 2021
    
December 31, 2020
  
Mortgage loans on real estate:
            
Residential 1-4 family
  
$
191
    
$
311
  
Commercial - owner occupied
    
-
      
903
  
Commercial - non-owner occupied
    
113
      
-
  
Total mortgage loans on real estate
  
 
304
    
 
1,214
  
Commercial and industrial loans
    
174
      
-
  
Consumer loans
     -
       -
  
Total
  
$
478
    
$
1,214
  
Interest Income to be Earned under the Original Terms
The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the Company on nonaccrual loans for the periods presented:

   
Years Ended December 31,
  
(dollars in thousand)
  
2021
    
2020
  
Interest income that would have been recorded under original loan terms
  
$
11
    
$
45
  
Actual interest income recorded for the period
    
2
      
34
  
Reduction in interest income on nonaccrual loans
  
$
9
    
$
11
  
Impaired Loans by Class
The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans, exclusive of purchased credit-impaired loans, with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the periods presented. The average balances are calculated based on daily average balances.
 
                           
For the Year Ended
  
   
As of December 31, 2021
    
December 31, 2021
  
(Dollars in thousands)
  
Unpaid Principal
Balance
    
Without
Valuation
Allowance
    
With Valuation
Allowance
    
Associated
Allowance
    
Average
Recorded
Investment
    
Interest Income
Recognized
  
Mortgage loans on real estate:
                                    
Residential 1-4 family
  
$
353
    
$
25
    
$
300
    
$
30
    
$
328
    
$
7
  
Commercial
    
610
      
178
      
413
      
8
      
601
      
1
  
Construction
    
80
      
79
      
-
      
-
      
80
      
4
  
Second mortgages
    
127
      
-
      
125
      
3
      
126
      
5
  
Total mortgage loans on real estate
    
1,170
      
282
      
838
      
41
      
1,135
      
17
  
Commercial and industrial loans
    
188
      
-
      
174
      
87
      
181
      
17
  
Other consumer loans
    
9
      
7
      
-
      
-
      
8
      
-
  
Total
  
$
1,367
    
$
289
    
$
1,012
    
$
128
    
$
1,324
    
$
34
  

                           
For the Year Ended
  
   
As of December 31, 2020
    
December 31, 2020
  
(Dollars in thousands)
  
Unpaid Principal
Balance
    
Without
Valuation
Allowance
    
With Valuation
Allowance
    
Associated
Allowance
    
Average
Recorded
Investment
    
Interest Income
Recognized
  
Mortgage loans on real estate:
                                    
Residential 1-4 family
  
$
474
    
$
366
    
$
87
    
$
1
    
$
458
    
$
10
  
Commercial
    
3,490
      
1,306
      
121
      
1
      
2,559
      
46
  
Construction
    
83
      
-
      
83
      
-
      
84
      
5
  
Second mortgages
    
133
      
-
      
133
      
9
      
134
      
5
  
Total mortgage loans on real estate
    
4,180
      
1,672
      
424
      
11
      
3,235
      
66
  
Commercial and industrial loans
    
6
      
6
      
-
      
-
      
7
      
-
  
Other consumer loans
    
14
      
14
      
-
      
-
      
15
      
1
  
Total
  
$
4,200
    
$
1,692
    
$
424
    
$
11
    
$
3,257
    
$
67
  
Allowance for Loan Losses by Segment
The following table presents, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS
For the Year ended December 31, 2021

(Dollars in thousands)
  
Commercial and Industrial
    
Real Estate Construction
    
Real Estate - Mortgage (1)
    
Real Estate - Commercial
    
Consumer (2)
    
Other
    
Unallocated
    
Total
  
Allowance for loan losses:
                                                
Balance, beginning
  
$
650
    
$
339
    
$
2,560
    
$
4,434
    
$
1,302
    
$
123
    
$
133
    
$
9,541
  
Charge-offs
    
(27
)
    
-
      
(14
)
    
-
      
(800
)
    
(278
)
    
-
      
(1,119
)
Recoveries
    
41
      
-
      
76
      
44
      
390
      
98
      
-
      
649
  
Provision for loan losses
    
19
      
120
      
(232
)
    
309
      
470
      
241
      
(133
)
    
794
  
Ending Balance
  
$
683
    
$
459
    
$
2,390
    
$
4,787
    
$
1,362
    
$
184
    
$
-
    
$
9,865
  
                                                                 
Individually evaluated for impairment
  
$
87
    
$
-
    
$
33
    
$
8
    
$
-
    
$
-
    
$
-
    
$
128
  
Collectively evaluated for impairment
    
596
      
459
      
2,357
      
4,779
      
1,362
      
184
      
-
      
9,737
  
                                                                 
Ending Balance
  
$
683
    
$
459
    
$
2,390
    
$
4,787
    
$
1,362
    
$
184
    
$
-
    
$
9,865
  
                                                                 
Loans Balances:
                                                                
Individually evaluated for impairment
    
174
      
79
      
450
      
591
      
7
      
-
      
-
      
1,301
  
Collectively evaluated for impairment
    
68,516
      
58,361
      
205,918
      
382,012
      
118,434
      
8,984
      
-
      
842,225
  
Ending Balance
  
$
68,690
    
$
58,440
    
$
206,368
    
$
382,603
    
$
118,441
    
$
8,984
    
$
-
    
$
843,526
  

For the Year ended December 31, 2020

(Dollars in thousands)
  
Commercial and Industrial
    
Real Estate Construction
    
Real Estate - Mortgage (1)
    
Real Estate - Commercial
    
Consumer (2)
    
Other
    
Unallocated
    
Total
  
Allowance for loan losses:
                                                
Balance, beginning
  
$
1,244
    
$
258
    
$
2,505
    
$
3,663
    
$
1,694
    
$
296
    
$
-
    
$
9,660
  
Charge-offs
    
(25)
      
-
      
(149
)
    
(654
)
    
(822
)
    
(355
)
    
-
      
(2,005
)
Recoveries
    
47
      
10
      
69
      
317
      
377
      
66
      
-
      
886
  
Provision for loan losses
    
(616
)
    
71
      
135
      
1,108
      
53
      
116
      
133
      
1,000
  
Ending Balance
  
$
650
    
$
339
    
$
2,560
    
$
4,434
    
$
1,302
    
$
123
    
$
133
    
$
9,541
  
                                                                 
Individually evaluated for impairment
  
$
-
    
$
-
    
$
10
    
$
1
    
$
-
    
$
-
    
$
-
    
$
11
  
Collectively evaluated for impairment
    
650
      
339
      
2,550
      
4,433
      
1,302
      
123
      
133
      
9,530
  
                                                                 
Ending Balance
  
$
650
    
$
339
    
$
2,560
    
$
4,434
    
$
1,302
    
$
123
    
$
133
    
$
9,541
  
                                                                 
Loans Balances:
                                                                
Individually evaluated for impairment
    
6
      
83
      
586
      
1,427
      
14
      
-
      
-
      
2,116
  
Collectively evaluated for impairment
    
141,740
      
43,649
      
206,950
      
315,424
      
118,354
      
8,067
      
-
      
834,184
  
Ending Balance
  
$
141,746
    
$
43,732
    
$
207,536
    
$
316,851
    
$
118,368
    
$
8,067
    
$
-
    
$
836,300
  

(1)
The real estate – mortgage segment included residential 1-4 family, second mortgages and equity lines of credit.
(2)
The consumer segment includes consumer automobile loans.