XML 45 R31.htm IDEA: XBRL DOCUMENT v3.24.1
Loans and Allowance for Credit Losses on Loans (Tables)
 12 Months Ended
Dec. 31, 2023
Loans and Allowance for Credit Losses on Loans [Abstract]  
Outstanding Loans by Segment Type
The following is a summary of the balances in each class of the Company’s portfolio of loans held for investment as of the dates indicated:
        December 31,  
(dollars in thousands)
  
 2023
    
 2022
  
Mortgage loans on real estate:
            
Residential 1-4 family
  
$
188,517
    
$
169,248
  
Commercial - owner occupied
    
156,466
      
184,586
  
Commercial - non-owner occupied
    
285,250
      
245,277
  
Multifamily
    
29,207
      
26,675
  
Construction and land development
    
107,179
      
77,944
  
Second mortgages
    
10,148
      
8,828
  
Equity lines of credit
    
55,981
      
54,340
  
Total mortgage loans on real estate
    
832,748
      
766,898
  
Commercial and industrial loans
    
64,112
      
72,578
  
Consumer automobile loans
    
160,437
      
163,018
  
Other consumer loans
    
19,718
      
22,251
  
Other  (1)
    
3,237
      
2,340
  
Total loans, net of deferred fees (2)
    
1,080,252
      
1,027,085
  
Less:  Allowance for credit losses on loans
    
12,206
      
10,526
  
Loans, net of allowance and deferred fees (2)
  
$
1,068,046
    
$
1,016,559
  

(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 $244 thousand and $269 thousand at December 31, 2023 and 2022, respectively.
(2)
Net deferred loan costs totaled $1.2 million and $1.0 million at December 31, 2023 and 2022, respectively.
Past Due Loans The following table shows the aging of the Company’s loan portfolio, by class, as of December 31, 2023.

Age Analysis of Past Due Loans as of December 31, 2023
(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
  
$
1,194
    
$
-
    
$
368
    
$
142
    
$
186,813
    
$
188,517
  
Commercial - owner occupied
    
100
      
-
      
322
      
-
      
156,044
      
156,466
  
Commercial - non-owner occupied
    
-
      
896
      
-
      
-
      
284,354
      
285,250
  
Multifamily
    
-
      
-
      
-
      
-
      
29,207
      
29,207
  
Construction and land development
    
-
      
-
      
-
      
-
      
107,179
      
107,179
  
Second mortgages
    
160
      
6
      
-
      
-
      
9,982
      
10,148
  
Equity lines of credit
    
205
      
-
      
-
      
46
      
55,730
      
55,981
  
Total mortgage loans on real estate
  
$
1,659
    
$
902
    
$
690
    
$
188
    
$
829,309
    
$
832,748
  
Commercial and industrial loans
    
527
      
427
      
306
      
-
      
62,852
      
64,112
  
Consumer automobile loans
    
3,254
      
706
      
661
      
-
      
155,816
      
160,437
  
Other consumer loans
    
634
      
264
      
123
      
-
      
18,697
      
19,718
  
Other
    
29
      
-
      
-
      
-
      
3,208
      
3,237
  
Total
  
$
6,103
    
$
2,299
    
$
1,780
    
$
188
    
$
1,069,882
    
$
1,080,252
(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 nonaccrual column and not also in its respective past due column.



The following table shows the aging of the Company’s loan portfolio, by class, as of December 31, 2022.

 

Age Analysis of Past Due Loans as of December 31, 2022


(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
  
$
290
    
$
-
    
$
525
    
$
154
    
$
168,279
    
$
169,248
  
Commercial - owner occupied
    
20
      
-
      
-
      
-
      
184,566
      
184,586
  
Commercial - non-owner occupied
    
206
      
-
      
-
      
-
      
245,071
      
245,277
  
Multifamily
    
-
      
-
      
-
      
-
      
26,675
      
26,675
  
Construction and land development
    
-
      
-
      
-
      
945
      
76,999
      
77,944
  
Second mortgages
    
19
      
-
      
-
      
-
      
8,809
      
8,828
  
Equity lines of credit
    
56
      
288
      
-
      
-
      
53,996
      
54,340
  
Total mortgage loans on real estate
  
$
591
    
$
288
    
$
525
    
$
1,099
    
$
764,395
    
$
766,898
  
Commercial and industrial loans
    
221
      
284
      
23
      
144
      
71,906
      
72,578
  
Consumer automobile loans
    
1,538
      
221
      
212
      
-
      
161,047
      
163,018
  
Other consumer loans
    
445
      
372
      
80
      
-
      
21,354
      
22,251
  
Other
    
47
      
-
      
-
      
-
      
2,293
      
2,340
  
Total
  
$
2,842
    
$
1,165
    
$
840
    
$
1,243
    
$
1,020,995
    
$
1,027,085
  
(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 nonaccrual column and not also in its respective past due column.
Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2023, as well as the amortized cost basis of loans on nonaccrual status and loans past due 90 days and accruing as of December 31, 2023 by class of loan.

 
   
Nonaccrual
              
(dollars in thousands)
  
January 1, 2023
    
December 31, 2023
    
Nonaccrual with
no ACLL
    
90 Days and still
Accruing
  
Mortgage loans on real estate:
                        
Residential 1-4 family
  
$
154
    
$
142
    
$
-
    
$
368
  
Commercial - owner occupied
    
-
      
-
      
-
      
322
  
Construction and land development
    
945
      
-
      
-
      
-
  
Equity lines of credit
    
-
      
46
      
-
      
-
  
Total mortgage loans on real estate
    
1,099
      
188
      
-
      
690
  
Commercial and industrial loans
    
144
      
-
      
-
      
306
  
Consumer automobile loans
    
-
      
-
      
-
      
661
  
Other consumer loans
    
-
      
-
      
-
      
123
  
Total
  
$
1,243
    
$
188
    
$
-
    
$
1,780
  
Allowance for Credit Losses by Segment

The following tables presents the activity in the ACLL by portfolio class for the year ended December 31, 2023.

 

Allowance for Credit Losses and Recorded Investment in Loans



For the Year Ended December 31, 2023

(dollars in thousands)
  
Commercial
and Industrial
    
Real Estate
Construction
and Land
Development
    
Real Estate -
Mortgage (1)
    
Real Estate-
Commercial (2)
    
Consumer (3)
    
Other
    
Unallocated
    
Total
  
Allowance for credit losses on loans:
                                                
Balance, beginning
  
$
673
    
$
552
    
$
2,575
    
$
4,499
    
$
2,065
    
$
156
    
$
6
    
$
10,526
  
Day 1 impact of adoption of CECL
    
(11
)
    
19
      
87
      
1,048
      
(365
)
    
(137
)
    
-
      
641
  
Charge-offs
    
(492
)
    
-
      
-
      
-
      
(1,613
)
    
(298
)
    
-
      
(2,403
)
Recoveries
    
69
      
-
      
42
      
-
      
506
      
59
      
-
      
676
  
Provision for loan losses
    
334
      
411
      
200
      
195
      
1,234
      
398
      
(6
)
    
2,766
  
Ending Balance
  
$
573
    
$
982
    
$
2,904
    
$
5,742
    
$
1,827
    
$
178
    
$
-
    
$
12,206
  


(1) The real estate-mortgage segment included residential 1-4 family, multi-family, second mortgages and equity lines of credit.

(2) The real estate-commerical segment included commerical-owner occupied and commercial non-owner occupied
(3) The consumer segment includes consumer automobile loans.


The following tables presents the activity in the ACLL by portfolio segment for the year ended December 31, 2022.



For the Year ended December 31, 2022
  
(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
  
$
683
    
$
459
    
$
2,390
    
$
4,787
    
$
1,362
    
$
184
    
$
-
    
$
9,865
  
Charge-offs
    
(297
)
    
-
      
(25
)
    
-
      
(1,368
)
    
(332
)
    
-
      
(2,022
)
Recoveries
    
134
      
-
      
61
      
22
      
648
      
112
      
-
      
977
  
Provision for loan losses
    
153
      
93
      
149
      
(310
)
    
1,423
      
192
      
6
      
1,706
  
Ending Balance
  
$
673
    
$
552
    
$
2,575
    
$
4,499
    
$
2,065
    
$
156
    
$
6
    
$
10,526
  
                                                                 
Individually evaluated for impairment
  
$
-
    
$
6
    
$
21
    
$
3
    
$
-
    
$
-
    
$
-
    
$
30
  
Collectively evaluated for impairment
    
673
      
546
      
2,554
      
4,496
      
2,065
      
156
      
6
      
10,496
  
 
                                                                
Ending Balance
  
$
673
    
$
552
    
$
2,575
    
$
4,499
    
$
2,065
    
$
156
    
$
6
    
$
10,526
  

(1) The real estate-mortgage segment includes residential 1 – 4 family, multi-family, second mortgages and equity lines of credit.
(2) The consumer segment includes consumer automobile loans.
Breakdown of Provision for Credit Losses
The following table presents a breakdown of the provision for credit losses for the periods indicated.

Year Ended December 31,  
(dollars in thousands)
 2023   2022
 		 
Provision for credit losses:
        
Provision for loans
   $ 2,766     $ 1,706  
Provison for (recovery of) unfunded commitments
     (165 )     -  
Total
   $ 2,601     $ 1,706  
Risk Category Loans by Class of Loans


The following tables present credit quality exposures by internally assigned risk ratings originated as of the dates indicated:

   
December 31, 2023
  
   
Term Loans Amortized Cost Basis by Origination Year
              
(dollars in thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
    
Total
  
Construction and land development
                                                
Pass
  
$
40,168
    
$
36,581
    
$
25,770
    
$
3,630
    
$
297
    
$
285
    
$
448
    
$
107,179
  
OAEM
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total construction and land development
  
$
40,168
    
$
36,581
    
$
25,770
    
$
3,630
    
$
297
    
$
285
    
$
448
    
$
107,179
  
                                                                 
Commercial real estate - owner occupied
                                                                
Pass
  
$
10,145
    
$
33,720
    
$
21,058
    
$
13,708
    
$
12,025
    
$
56,978
    
$
5,680
    
$
153,314
  
OAEM
    
-
      
-
      
-
      
-
      
77
      
2,985
      
-
      
3,062
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
90
      
-
      
90
  
Total commercial real estate - owner occupied
  
$
10,145
    
$
33,720
    
$
21,058
    
$
13,708
    
$
12,102
    
$
60,053
    
$
5,680
    
$
156,466
  
                                                                 
Commercial real estate - non-owner occupied
                                                                
Pass
  
$
31,539
    
$
53,217
    
$
96,755
    
$
38,704
    
$
10,517
    
$
51,451
    
$
2,263
    
$
284,446
  
OAEM
    
-
      
-
      
-
      
-
      
804
      
-
      
-
      
804
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total commercial real estate - non-owner occupied
  
$
31,539
    
$
53,217
    
$
96,755
    
$
38,704
    
$
11,321
    
$
51,451
    
$
2,263
    
$
285,250
  
                                                                 
Commercial and industrial
                                                                
Pass
  
$
18,248
    
$
21,698
    
$
4,300
    
$
1,691
    
$
2,192
    
$
2,075
    
$
13,908
    
$
64,112
  
OAEM
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total commercial and industrial
  
$
18,248
    
$
21,698
    
$
4,300
    
$
1,691
    
$
2,192
    
$
2,075
    
$
13,908
    
$
64,112
  
                                                                 
Multifamily real estate
                                                                
Pass
  
$
6,568
    
$
3,841
    
$
2,151
    
$
605
    
$
5,955
    
$
9,005
    
$
1,082
    
$
29,207
  
OAEM
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total multifamily real estate
  
$
6,568
    
$
3,841
    
$
2,151
    
$
605
    
$
5,955
    
$
9,005
    
$
1,082
    
$
29,207
  
                                                                 
Residential 1-4 family
                                                                
Pass
  
$
27,497
    
$
41,062
    
$
39,937
    
$
26,368
    
$
13,009
    
$
52,148
    
$
54,087
    
$
254,108
  
OAEM
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
350
      
46
      
142
      
-
      
538
  
Total residential 1-4 family
  
$
27,497
    
$
41,062
    
$
39,937
    
$
26,718
    
$
13,055
    
$
52,290
    
$
54,087
    
$
254,646
  
                                                                 
Consumer - automobile
                                                                
Pass
  
$
52,750
    
$
83,885
    
$
13,184
    
$
4,152
    
$
1,618
    
$
4,848
    
$
-
    
$
160,437
  
OAEM
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total consumer - automobile
  
$
52,750
    
$
83,885
    
$
13,184
    
$
4,152
    
$
1,618
    
$
4,848
    
$
-
    
$
160,437
  
                                                                 
Consumer - other
                                                                
Pass
  
$
323
    
$
765
    
$
330
    
$
109
    
$
11
    
$
16,089
    
$
2,091
    
$
19,718
  
OAEM
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total consumer - other
  
$
323
    
$
765
    
$
330
    
$
109
    
$
11
    
$
16,089
    
$
2,091
    
$
19,718
  
                                                                 
Other
                                                                
Pass
  
$
1,620
    
$
-
    
$
292
    
$
-
    
$
-
    
$
1,325
    
$
-
    
$
3,237
  
OAEM
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total other
  
$
1,620
    
$
-
    
$
292
    
$
-
    
$
-
    
$
1,325
    
$
-
    
$
3,237
  
                                                                 
Total loans
                                                                
Pass
  
$
188,858
    
$
274,769
    
$
203,777
    
$
88,967
    
$
45,624
    
$
194,204
    
$
79,559
    
$
1,075,758
  
OAEM
    
-
      
-
      
-
      
-
      
881
      
2,985
      
-
      
3,866
  
Substandard
    
-
      
-
      
-
      
350
      
46
      
232
      
-
      
628
  
Total loans
  
$
188,858
    
$
274,769
    
$
203,777
    
$
89,317
    
$
46,551
    
$
197,421
    
$
79,559
    
$
1,080,252
  



The following table details the current period gross charge-offs of loans by year of origination as of December 31, 2023:
   
December 31, 2023
  
   
Current Period Charge-offs by Origination Year
              
(dollars in thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
Amortized
Cost Basis
    
Total
  
Commercial and industrial
 		  $
-     $
436     $
18     $
21     $
-     $
17     $
-     $
492  
Consumer - automobile
    
54
      
987
      
318
      
110
      
18
      
64
      
-
      
1,551
  
Consumer - other
    
5
      
-
      
5
      
-
      
3
      
49
      
-
      
62
  
Other (1)
    
277
      
21
      
-
      
-
      
-
      
-
      
-
      
298
  
Total
  
$
336
    
$
1,444
    
$
341
    
$
131
    
$
21
    
$
130
    
$
-
    
$
2,403
  

(1) Gross charge-offs of other loans for the year ended December 31, 2023 included $277 thousand of demand deposit overdrafts that originated in 2023.



The following tables present credit quality exposures by internally assigned risk ratings as of December 31, 2022:
 

Credit Quality Information

As of December 31, 2023
(dollars in thousands)
  
Pass
    
OAEM
    
Substandard
    
Total
  
Mortgage loans on real estate:
                        
Residential 1-4 family
  
$
188,025
    
$
-
    
$
492
    
$
188,517
  
Commercial - owner occupied
    
153,314
      
3,062
      
90
      
156,466
  
Commercial - non-owner occupied
    
284,446
      
804
      
-
      
285,250
  
Multifamily
    
29,207
      
-
      
-
      
29,207
  
Construction and land development
    
107,179
      
-
      
-
      
107,179
  
Second mortgages
    
10,148
      
-
      
-
      
10,148
  
Equity lines of credit
    
55,935
      
-
      
46
      
55,981
  
Total mortgage loans on real estate
  
$
828,254
    
$
3,866
    
$
628
    
$
832,748
  
Commercial and industrial loans
    
64,112
      
-
      
-
      
64,112
  
Consumer automobile loans
    
160,437
      
-
      
-
      
160,437
  
Other consumer loans
    
19,718
      
-
      
-
      
19,718
  
Other
    
3,237
      
-
      
-
      
3,237
  
Total
  
$
1,075,758
    
$
3,866
    
$
628
    
$
1,080,252
  
Impaired Loans by Class

As of December 31, 2022, the Company measured the amount of impairment by evaluating loans either in their collective homogenous pools or individually. The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans with the associated allowance amount, if applicable. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the period presented. The average balances are calculated based on daily average balances.

 

Impaired Loans by Class
                 
For the Year Ended
  
 
As of December 31, 2022
  
December 31, 2022
  
(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
  
$
285
    
$
44
    
$
235
    
$
21
    
$
282
    
$
7
  
Commercial
    
430
      
55
      
358
      
3
      
420
      
-
  
Construction
    
1,321
      
829
      
191
      
6
      
1,208
      
3
  
Total mortgage loans on real estate
    
2,036
      
928
      
784
      
30
      
1,910
      
10
  
Commercial and industrial loans
    
144
      
144
      
-
      
-
      
144
      
5
  
Total
  
$
2,180
    
$
1,072
    
$
784
    
$
30
    
$
2,054
    
$
15