XML 30 R20.htm IDEA: XBRL DOCUMENT v3.21.1
LOANS (Tables)
 3 Months Ended
Mar. 31, 2021
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at March 31, 2021 and December 31, 2020 are summarized as follows:

  
2021
    
2020
  
Residential real estate
  
$
379,679
    
$
378,659
  
Multifamily real estate
    
33,414
      
37,978
  
Commercial real estate:
                
Owner occupied
    
174,206
      
164,706
  
Non-owner occupied
    
332,765
      
329,031
  
Commercial and industrial
    
87,223
      
90,062
  
SBA PPP
    
98,298
      
61,169
  
Consumer
    
22,005
      
23,984
  
Construction and land
    
98,794
      
92,648
  
All other
    
35,524
      
36,141
  
   
$
1,261,908
    
$
1,214,378
  
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2021 was as follows:

Loan Class
  
Balance
Dec 31, 2020
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
March 31, 2021
  
                               
Residential real estate
  
$
2,071
    
$
99
    
$
(60
)
  
$
1
    
$
2,111
  
Multifamily real estate
    
184
      
(18
)
    
-
      
-
      
166
  
Commercial real estate:
                                        
Owner occupied
    
2,874
      
95
      
-
      
1
      
2,970
  
Non-owner occupied
    
5,129
      
499
      
-
      
-
      
5,628
  
Commercial and industrial
    
1,538
      
(95
)
    
(63
)
    
5
      
1,385
  
Consumer
    
226
      
1
      
(26
)
    
4
      
205
  
Construction and land
    
946
      
74
      
-
      
2
      
1,022
  
All other
    
548
      
(7
)
    
(28
)
    
27
      
540
  
Total
  
$
13,516
    
$
648
    
$
(177
)
  
$
40
    
$
14,027
  

Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2020 was as follows:

Loan Class
  
Balance
Dec 31, 2019
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
March 31, 2020
  
                               
Residential real estate
  
$
1,711
    
$
216
    
$
(93
)
  
$
4
    
$
1,838
  
Multifamily real estate
    
1,954
      
150
      
-
      
-
      
2,104
  
Commercial real estate:
                                        
Owner occupied
    
2,441
      
342
      
(566
)
    
3
      
2,220
  
Non-owner occupied
    
3,184
      
479
      
(24
)
    
3
      
3,642
  
Commercial and industrial
    
1,767
      
22
      
-
      
28
      
1,817
  
Consumer
    
281
      
2
      
(69
)
    
27
      
241
  
Construction and land
    
1,724
      
(349
)
    
-
      
37
      
1,412
  
All other
    
480
      
138
      
(74
)
    
38
      
582
  
Total
  
$
13,542
    
$
1,000
    
$
(826
)
  
$
140
    
$
13,856
  
Purchased Impaired Loans
The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected.  The carrying amount of those loans is as follows at March 31, 2021 and December 31, 2020.

  
2021
    
2020
  
Residential real estate
  
$
2,025
    
$
2,092
  
Commercial real estate
                
Owner occupied
    
680
      
1,012
  
Non-owner occupied
    
2,006
      
2,357
  
Commercial and industrial
    
14
      
16
  
Consumer
    
8
      
9
  
Construction and land
    
337
      
368
  
All other
    
38
      
110
  
Total carrying amount
  
$
5,108
    
$
5,964
  
Contractual principal balance
  
$
8,060
    
$
9,267
  
                 
Carrying amount, net of allowance
  
$
5,108
    
$
5,964
  
Purchase Loans Accretable Yield, or Income Expected to be Collected
The accretable yield, or income expected to be collected, on the purchased loans above is as follows at March 31, 2021 and March 31, 2020.

  
2021
    
2020
  
Balance at January 1
  
$
277
    
$
619
  
New loans purchased
    
-
      
-
  
Accretion of income
    
(87
)
    
(36
)
Loans placed on non-accrual
    
(5
)
    
-
  
Income recognized upon full repayment
    
-
      
(7
)
Reclassifications from non-accretable difference
    
219
      
-
  
Disposals
    
-
      
-
  
Balance at March 31
  
$
404
    
$
576
  
Past Due and Non-performing Loans
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2021 and December 31, 2020.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

March 31, 2021
  
Principal Owed
on Non-accrual
Loans
    
Recorded
Investment in
Non-accrual
Loans
    
Loans Past Due
Over 90 Days,
still accruing
  
                   
Residential real estate
  
$
4,506
    
$
3,562
    
$
807
  
Commercial real estate
                        
Owner occupied
    
3,861
      
3,602
      
94
  
Non-owner occupied
    
5,367
      
4,216
      
7
  
Commercial and industrial
    
1,066
      
490
      
-
  
Consumer
    
147
      
85
      
1
  
Construction and land
    
11
      
9
      
-
  
Total
  
$
14,958
    
$
11,964
    
$
909
  

December 31, 2020
  
Principal Owed
on Non-accrual
Loans
    
Recorded Investment in
Non-accrual
Loans
    
Loans Past Due
Over 90 Days,
still accruing
  
                   
Residential real estate
  
$
5,144
    
$
3,955
    
$
1,348
  
Commercial real estate
                        
Owner occupied
    
2,601
      
2,103
      
7
  
Non-owner occupied
    
3,305
      
2,230
      
975
  
Commercial and industrial
    
1,173
      
604
      
-
  
Consumer
    
168
      
94
      
1
  
Construction and land
    
12
      
10
      
1
  
Total
  
$
12,403
    
$
8,996
    
$
2,332
  
Aging of Recorded Investment in Past Due Loans by Loan Class
The following table presents the aging of the recorded investment in past due loans as of March 31, 2021 by class of loans:

Loan Class
  
Total Loans
    
30-89 Days
Past Due
    
Greater than 90
Days Past Due
    
Total
Past Due
    
Loans Not
Past Due
  
                               
Residential real estate
  
$
379,679
    
$
2,763
    
$
2,512
    
$
5,275
    
$
374,404
  
Multifamily real estate
    
33,414
      
-
      
-
      
-
      
33,414
  
Commercial real estate:
                                        
Owner occupied
    
174,206
      
1,999
      
580
      
2,579
      
171,627
  
Non-owner occupied
    
332,765
      
988
      
935
      
1,923
      
330,842
  
Commercial and industrial
    
87,223
      
30
      
367
      
397
      
86,826
  
SBA PPP
    
98,298
      
-
      
-
      
-
      
98,298
  
Consumer
    
22,005
      
144
      
13
      
157
      
21,848
  
Construction and land
    
98,794
      
-
      
4
      
4
      
98,790
  
All other
    
35,524
      
-
      
-
      
-
      
35,524
  
Total
  
$
1,261,908
    
$
5,924
    
$
4,411
    
$
10,335
    
$
1,251,573
  

The following table presents the aging of the recorded investment in past due loans as of December 31, 2020 by class of loans:

Loan Class
  
Total Loans
    
30-89 Days
Past Due
    
Greater than 90
Days Past Due
    
Total
Past Due
    
Loans Not
Past Due
  
                               
Residential real estate
  
$
378,659
    
$
3,978
    
$
3,190
    
$
7,168
    
$
371,491
  
Multifamily real estate
    
37,978
      
32
      
-
      
32
      
37,946
  
Commercial real estate:
                                        
Owner occupied
    
164,706
      
1,197
      
814
      
2,011
      
162,695
  
Non-owner occupied
    
329,031
      
987
      
2,196
      
3,183
      
325,848
  
Commercial and industrial
    
90,062
      
75
      
476
      
551
      
89,511
  
SBA PPP
    
61,169
      
-
      
-
      
-
      
61,169
  
Consumer
    
23,984
      
190
      
38
      
228
      
23,756
  
Construction and land
    
92,648
      
-
      
5
      
5
      
92,643
  
All other
    
36,141
      
23
      
-
      
23
      
36,118
  
Total
  
$
1,214,378
    
$
6,482
    
$
6,719
    
$
13,201
    
$
1,201,177
  
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2021:

  
Allowance for Loan Losses
    
Loan Balances
  
Loan Class
  
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated Credit
Quality
    
Total
    
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated Credit
Quality
    
Total
  
                                                 
Residential real estate
  
$
-
    
$
2,111
    
$
-
    
$
2,111
    
$
56
    
$
377,598
    
$
2,025
    
$
379,679
  
Multifamily real estate
    
-
      
166
      
-
      
166
      
-
      
33,414
      
-
      
33,414
  
Commercial real estate:
                                                                
Owner occupied
    
291
      
2,679
      
-
      
2,970
      
3,797
      
169,729
      
680
      
174,206
  
Non-owner occupied
    
653
      
4,975
      
-
      
5,628
      
4,123
      
326,636
      
2,006
      
332,765
  
Commercial and industrial
    
277
      
1,108
      
-
      
1,385
      
400
      
86,809
      
14
      
87,223
  
SBA PPP
    
-
      
-
      
-
      
-
      
-
      
98,298
      
-
      
98,298
  
Consumer
    
-
      
205
      
-
      
205
      
-
      
21,997
      
8
      
22,005
  
Construction and land
    
-
      
1,022
      
-
      
1,022
      
-
      
98,457
      
337
      
98,794
  
All other
    
-
      
540
      
-
      
540
      
-
      
35,486
      
38
      
35,524
  
Total
  
$
1,221
    
$
12,806
    
$
-
    
$
14,027
    
$
8,376
    
$
1,248,424
    
$
5,108
    
$
1,261,908
  

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2020:

  
Allowance for Loan Losses
    
Loan Balances
  
Loan Class
  
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated Credit
Quality
    
Total
    
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated Credit
Quality
    
Total
  
                                                 
Residential real estate
  
$
-
    
$
2,071
    
$
-
    
$
2,071
    
$
57
    
$
376,510
    
$
2,092
    
$
378,659
  
Multifamily real estate
    
-
      
184
      
-
      
184
      
-
      
37,978
      
-
      
37,978
  
Commercial real estate:
                                                                
Owner occupied
    
240
      
2,634
      
-
      
2,874
      
1,981
      
161,713
      
1,012
      
164,706
  
Non-owner occupied
    
385
      
4,744
      
-
      
5,129
      
1,843
      
324,831
      
2,357
      
329,031
  
Commercial and industrial
    
374
      
1,164
      
-
      
1,538
      
548
      
89,498
      
16
      
90,062
  
SBA PPP
    
-
      
-
      
-
      
-
      
-
      
61,169
      
-
      
61,169
  
Consumer
    
-
      
226
      
-
      
226
      
-
      
23,975
      
9
      
23,984
  
Construction and land
    
-
      
946
      
-
      
946
      
-
      
92,280
      
368
      
92,648
  
All other
    
-
      
548
      
-
      
548
      
-
      
36,031
      
110
      
36,141
  
Total
  
$
999
    
$
12,517
    
$
-
    
$
13,516
    
$
4,429
    
$
1,203,985
    
$
5,964
    
$
1,214,378
  
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2021.  The table includes $71,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid Principal
Balance
    
Recorded
Investment
    
Allowance for
Loan Losses
Allocated
  
With no related allowance recorded:
                  
Residential real estate
  
$
172
    
$
56
    
$
-
  
Commercial real estate
                        
Owner occupied
    
3,547
      
3,305
      
-
  
Non-owner occupied
    
1,320
      
421
      
-
  
Commercial and industrial
    
509
      
-
      
-
  
     
5,548
      
3,782
      
-
  
With an allowance recorded:
                        
Commercial real estate
                        
Owner occupied
    
508
      
492
      
291
  
Non-owner occupied
    
4,019
      
3,773
      
653
  
Commercial and industrial
    
440
      
400
      
277
  
     
4,967
      
4,665
      
1,221
  
Total
  
$
10,515
    
$
8,447
    
$
1,221
  

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2020.  The table includes $689,000 of loans acquired with deteriorated credit quality for which the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid Principal
Balance
    
Recorded
Investment
    
Allowance for
Loan Losses
Allocated
  
With no related allowance recorded:
                  
Residential real estate
  
$
175
    
$
57
    
$
-
  
Commercial real estate
                        
Owner occupied
    
2,295
      
1,815
      
-
  
Non-owner occupied
    
1,638
      
743
      
-
  
Commercial and industrial
    
509
      
-
      
-
  
     
4,617
      
2,615
      
-
  
With an allowance recorded:
                        
Commercial real estate
                        
Owner occupied
  
$
506
    
$
490
    
$
240
  
Non-owner occupied
    
1,638
      
1,465
      
385
  
Commercial and industrial
    
581
      
548
      
374
  
     
2,725
      
2,503
      
999
  
Total
  
$
7,342
    
$
5,118
    
$
999
  
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended March 31, 2021 and March 31, 2020.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Three months ended March 31, 2021
    
Three months ended March 31, 2020
  
Loan Class
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Cash Basis
Interest
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Cash Basis
Interest
Recognized
  
                                     
Residential real estate
  
$
57
    
$
-
    
$
-
    
$
62
    
$
-
    
$
-
  
Multifamily real estate
    
-
      
-
      
-
      
3,761
      
-
      
-
  
Commercial real estate:
                                                
Owner occupied
    
3,050
      
152
      
152
      
2,408
      
3
      
3
  
Non-owner occupied
    
3,201
      
-
      
-
      
4,362
      
36
      
36
  
Commercial and industrial
    
474
      
1
      
1
      
726
      
1
      
1
  
Construction and land
    
-
      
-
      
-
      
378
      
-
      
-
  
Total
  
$
6,782
    
$
153
    
$
153
    
$
11,697
    
$
40
    
$
40
  
Troubled Debt Restructurings
The following table presents TDR’s as of March 31, 2021 and December 31, 2020:

March 31, 2021
  
TDR’s on
Non-accrual
    
Other TDR’s
    
Total TDR’s
  
                   
Residential real estate
  
$
1
    
$
215
    
$
216
  
Commercial real estate
                        
Owner occupied
    
-
      
189
      
189
  
Non-owner occupied
    
856
      
-
      
856
  
Total
  
$
857
    
$
404
    
$
1,261
  

December 31, 2020
  
TDR’s on
Non-accrual
    
Other TDR’s
    
Total TDR’s
  
                   
Residential real estate
  
$
19
    
$
203
    
$
222
  
Commercial real estate
                        
Owner occupied
    
-
      
195
      
195
  
Non-owner occupied
    
856
      
-
      
856
  
Total
  
$
875
    
$
398
    
$
1,273
  
Loans Modified under CARES Act
The following table presents the status of the remaining loans as of March 31, 2021 and December 31, 2020 with some degree of payment modification under the CARES Act.

March 31, 2021
  
Modified to Interest Only Payment
    
Modified to Defer Principal and Interest Payment
    
Total
  
Commercial real estate
                  
Owner occupied
  
$
967
    
$
5,108
    
$
6,075
  
Non-owner occupied
    
3,839
      
12,293
      
16,132
  
Construction and land
    
5,769
      
-
      
5,769
  
Total
  
$
10,575
    
$
17,401
    
$
27,976
  


December 31, 2020
  
Modified to Interest Only Payment
    
Modified to Defer Principal and Interest Payment
    
Total
  
                   
Residential real estate
  
$
560
    
$
338
    
$
898
  
Multifamily real estate
    
667
      
-
      
667
  
Commercial real estate
                        
Owner occupied
    
10,567
      
396
      
10,963
  
Non-owner occupied
    
17,659
      
214
      
17,873
  
Construction and industrial
    
-
      
898
      
898
  
Consumer
    
7
      
19
      
26
  
Construction and land
    
2,472
      
3,849
      
6,321
  
Total
  
$
31,932
    
$
5,714
    
$
37,646
  

Risk Category of Loans by Class of Loans
As of March 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Total Loans
  
                               
Residential real estate
  
$
366,902
    
$
2,950
    
$
9,827
    
$
-
    
$
379,679
  
Multifamily real estate
    
30,955
      
2,459
      
-
      
-
      
33,414
  
Commercial real estate:
                                        
Owner occupied
    
165,784
      
4,540
      
3,882
      
-
      
174,206
  
Non-owner occupied
    
303,662
      
24,348
      
4,755
      
-
      
332,765
  
Commercial and industrial
    
82,656
      
3,291
      
1,276
      
-
      
87,223
  
SBA PPP
    
98,298
      
-
      
-
      
-
      
98,298
  
Consumer
    
21,866
      
-
      
139
      
-
      
22,005
  
Construction and land
    
94,093
      
4,639
      
62
      
-
      
98,794
  
All other
    
35,498
      
26
      
-
      
-
      
35,524
  
Total
  
$
1,199,714
    
$
42,253
    
$
19,941
    
$
-
    
$
1,261,908
  

As of December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Total Loans
  
                               
Residential real estate
  
$
365,397
    
$
3,093
    
$
10,169
    
$
-
    
$
378,659
  
Multifamily real estate
    
35,412
      
2,566
      
-
      
-
      
37,978
  
Commercial real estate:
                                        
Owner occupied
    
155,707
      
4,686
      
4,313
      
-
      
164,706
  
Non-owner occupied
    
312,139
      
13,959
      
2,933
      
-
      
329,031
  
Commercial and industrial
    
84,948
      
3,747
      
1,367
      
-
      
90,062
  
SBA PPP
    
61,169
      
-
      
-
      
-
      
61,169
  
Consumer
    
23,837
      
5
      
142
      
-
      
23,984
  
Construction and land
    
88,587
      
3,833
      
228
      
-
      
92,648
  
All other
    
36,141
      
-
      
-
      
-
      
36,141
  
Total
  
$
1,163,337
    
$
31,889
    
$
19,152
    
$
-
    
$
1,214,378