XML 30 R20.htm IDEA: XBRL DOCUMENT v3.21.2
LOANS (Tables)
 6 Months Ended
Jun. 30, 2021
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at June 30, 2021 and December 31, 2020 are summarized as follows:

  
2021
    
2020
  
Residential real estate
  
$
379,647
    
$
378,659
  
Multifamily real estate
    
37,593
      
37,978
  
Commercial real estate:
                
Owner occupied
    
171,281
      
164,706
  
Non-owner occupied
    
339,418
      
329,031
  
Commercial and industrial
    
83,961
      
90,062
  
SBA PPP
    
73,404
      
61,169
  
Consumer
    
21,505
      
23,984
  
Construction and land
    
103,591
      
92,648
  
All other
    
35,561
      
36,141
  
   
$
1,245,961
    
$
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 six months ended June 30, 2021 was as follows:

Loan Class
  
Balance
December 31, 2020
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
June 30, 2021
  
                               
Residential real estate
  
$
2,071
    
$
301
    
$
(175
)
  
$
12
    
$
2,209
  
Multifamily real estate
    
184
      
(17
)
    
-
      
-
      
167
  
Commercial real estate:
                                        
Owner occupied
    
2,874
      
(184
)
    
(214
)
    
3
      
2,479
  
Non-owner occupied
    
5,129
      
964
      
(856
)
    
-
      
5,237
  
Commercial and industrial
    
1,538
      
(129
)
    
(90
)
    
12
      
1,331
  
Consumer
    
226
      
(4
)
    
(44
)
    
18
      
196
  
Construction and land
    
946
      
152
      
-
      
4
      
1,102
  
All other
    
548
      
(7
)
    
(50
)
    
48
      
539
  
Total
  
$
13,516
    
$
1,076
    
$
(1,429
)
  
$
97
    
$
13,260
  

Activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2020 was as follows:

Loan Class
  
Balance
December 31, 2019
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
June 30, 2020
  
                               
Residential real estate
  
$
1,711
    
$
288
    
$
(94
)
  
$
10
    
$
1,915
  
Multifamily real estate
    
1,954
      
161
      
-
      
-
      
2,115
  
Commercial real estate:
                                        
Owner occupied
    
2,441
      
590
      
(566
)
    
5
      
2,470
  
Non-owner occupied
    
3,184
      
1,200
      
(77
)
    
3
      
4,310
  
Commercial and industrial
    
1,767
      
(247
)
    
(5
)
    
39
      
1,554
  
Consumer
    
281
      
14
      
(99
)
    
34
      
230
  
Construction and land
    
1,724
      
(529
)
    
-
      
38
      
1,233
  
All other
    
480
      
113
      
(94
)
    
62
      
561
  
Total
  
$
13,542
    
$
1,590
    
$
(935
)
  
$
191
    
$
14,388
  

Activity in the allowance for loan losses by portfolio segment for the three months ended June 30, 2021 was as follows:

Loan Class
  
Balance
March 31, 2021
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
June 30, 2021
  
                               
Residential real estate
  
$
2,111
    
$
202
    
$
(115
)
  
$
11
    
$
2,209
  
Multifamily real estate
    
166
      
1
      
-
      
-
      
167
  
Commercial real estate:
                                        
Owner occupied
    
2,970
      
(279
)
    
(214
)
    
2
      
2,479
  
Non-owner occupied
    
5,628
      
465
      
(856
)
    
-
      
5,237
  
Commercial and industrial
    
1,385
      
(34
)
    
(27
)
    
7
      
1,331
  
Consumer
    
205
      
(5
)
    
(18
)
    
14
      
196
  
Construction and land
    
1,022
      
78
      
-
      
2
      
1,102
  
All other
    
540
      
-
      
(22
)
    
21
      
539
  
Total
  
$
14,027
    
$
428
    
$
(1,252
)
  
$
57
    
$
13,260
  

Activity in the allowance for loan losses by portfolio segment for the three months ended June 30, 2020 was as follows:

Loan Class
  
Balance
March 31, 2020
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
June 30, 2020
  
                               
Residential real estate
  
$
1,838
    
$
72
    
$
(1
)
  
$
6
    
$
1,915
  
Multifamily real estate
    
2,104
      
11
      
-
      
-
      
2,115
  
Commercial real estate:
                                        
Owner occupied
    
2,220
      
248
      
-
      
2
      
2,470
  
Non-owner occupied
    
3,642
      
721
      
(53
)
    
-
      
4,310
  
Commercial and industrial
    
1,817
      
(269
)
    
(5
)
    
11
      
1,554
  
Consumer
    
241
      
12
      
(30
)
    
7
      
230
  
Construction and land
    
1,412
      
(180
)
    
-
      
1
      
1,233
  
All other
    
582
      
(25
)
    
(20
)
    
24
      
561
  
Total
  
$
13,856
    
$
590
    
$
(109
)
  
$
51
    
$
14,388
  
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 June 30, 2021 and December 31, 2020.
  
2021
    
2020
  
Residential real estate
  
$
1,904
    
$
2,092
  
Commercial real estate
                
Owner occupied
    
658
      
1,012
  
Non-owner occupied
    
1,948
      
2,357
  
Commercial and industrial
    
-
      
16
  
Consumer
    
2
      
9
  
Construction and land
    
334
      
368
  
All other
    
39
      
110
  
Total carrying amount
  
$
4,885
    
$
5,964
  
Contractual principal balance
  
$
7,746
    
$
9,267
  
                 
Carrying amount, net of allowance
  
$
4,885
    
$
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 June 30, 2021 and June 30, 2020.

  
2021
    
2020
  
Balance at January 1
  
$
277
    
$
619
  
New loans purchased
    
-
      
-
  
Accretion of income
    
(137
)
    
(59
)
Loans placed on non-accrual
    
(19
)
    
-
  
Income recognized upon full repayment
    
(11
)
    
(65
)
Reclassifications to accretable difference
    
231
      
(190
)
Disposals
    
-
      
-
  
Balance at June 30
  
$
341
    
$
305
  
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 June 30, 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.

June 30, 2021
  
Principal Owed
on Non-accrual
Loans
    
Recorded
Investment in
Non-accrual Loans
    
Loans Past Due
Over 90 Days,
still accruing
  
                   
Residential real estate
  
$
4,050
    
$
3,086
    
$
984
  
Commercial real estate
                        
Owner occupied
    
3,375
      
3,105
      
-
  
Non-owner occupied
    
6,434
      
5,231
      
83
  
Commercial and industrial
    
992
      
422
      
-
  
Consumer
    
114
      
73
      
1
  
Construction and land
    
10
      
8
      
-
  
Total
  
$
14,975
    
$
11,925
    
$
1,068
  

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 June 30, 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
  
$
379,647
    
$
3,419
    
$
2,218
    
$
5,637
    
$
374,010
  
Multifamily real estate
    
37,593
      
-
      
-
      
-
      
37,593
  
Commercial real estate:
                                        
Owner occupied
    
171,281
      
21
      
1,874
      
1,895
      
169,386
  
Non-owner occupied
    
339,418
      
835
      
2,120
      
2,955
      
336,463
  
Commercial and industrial
    
83,961
      
398
      
304
      
702
      
83,259
  
SBA PPP
    
73,404
      
-
      
-
      
-
      
73,404
  
Consumer
    
21,505
      
161
      
7
      
168
      
21,337
  
Construction and land
    
103,591
      
963
      
3
      
966
      
102,625
  
All other
    
35,561
      
-
      
-
      
-
      
35,561
  
Total
  
$
1,245,961
    
$
5,797
    
$
6,526
    
$
12,323
    
$
1,233,638
  

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 June 30, 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
  
$
-
    
$
2,209
    
$
-
    
$
2,209
    
$
54
    
$
377,689
    
$
1,904
    
$
379,647
  
Multifamily real estate
    
-
      
167
      
-
      
167
      
-
      
37,593
      
-
      
37,593
  
Commercial real estate:
                                                                
Owner occupied
    
-
      
2,479
      
-
      
2,479
      
3,267
      
167,356
      
658
      
171,281
  
Non-owner occupied
    
352
      
4,885
      
-
      
5,237
      
5,139
      
332,331
      
1,948
      
339,418
  
Commercial and industrial
    
276
      
1,055
      
-
      
1,331
      
389
      
83,572
      
-
      
83,961
  
SBA PPP
    
-
      
-
      
-
      
-
      
-
      
73,404
      
-
      
73,404
  
Consumer
    
-
      
196
      
-
      
196
      
-
      
21,503
      
2
      
21,505
  
Construction and land
    
-
      
1,102
      
-
      
1,102
      
-
      
103,257
      
334
      
103,591
  
All other
    
-
      
539
      
-
      
539
      
-
      
35,522
      
39
      
35,561
  
Total
  
$
628
    
$
12,632
    
$
-
    
$
13,260
    
$
8,849
    
$
1,232,227
    
$
4,885
    
$
1,245,961
  

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 June 30, 2021.  The table includes $73,000 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
  
$
171
    
$
54
    
$
-
  
Commercial real estate
                        
Owner occupied
    
3,535
      
3,267
      
-
  
Non-owner occupied
    
3,270
      
2,358
      
-
  
Commercial and industrial
    
509
      
-
      
-
  
     
7,485
      
5,679
      
-
  
With an allowance recorded:
                        
Commercial real estate
                        
Non-owner occupied
    
3,139
      
2,854
      
352
  
Commercial and industrial
    
435
      
389
      
276
  
     
3,574
      
3,243
      
628
  
Total
  
$
11,059
    
$
8,922
    
$
628
  

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 six months ended June 30, 2021 and June 30, 2020.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Six Months Ended June 30, 2021
    
Six Months Ended June 30, 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
  
$
56
    
$
-
    
$
-
    
$
62
    
$
-
    
$
-
  
Multifamily real estate
    
-
      
-
      
-
      
3,744
      
-
      
-
  
Commercial real estate:
                                                
Owner occupied
    
3,123
      
155
      
155
      
2,191
      
6
      
4
  
Non-owner occupied
    
3,871
      
-
      
-
      
4,376
      
72
      
36
  
Commercial and industrial
    
446
      
1
      
1
      
738
      
2
      
2
  
Construction and land
    
-
      
-
      
-
      
353
      
-
      
-
  
Total
  
$
7,496
    
$
156
    
$
156
    
$
11,464
    
$
80
    
$
42
  

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 June 30, 2021 and June 30, 2020.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Three months ended June 30, 2021
    
Three months ended June 30, 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
  
$
55
    
$
-
    
$
-
    
$
61
    
$
-
    
$
-
  
Multifamily real estate
    
-
      
-
      
-
      
3,753
      
-
      
-
  
Commercial real estate:
                                                
Owner occupied
    
3,532
      
3
      
3
      
1,785
      
3
      
1
  
Non-owner occupied
    
4,703
      
-
      
-
      
4,429
      
36
      
-
  
Commercial and industrial
    
395
      
-
      
-
      
768
      
1
      
1
  
Construction and land
    
-
      
-
      
-
      
314
      
-
      
-
  
Total
  
$
8,685
    
$
3
    
$
3
    
$
11,110
    
$
40
    
$
2
  
Troubled Debt Restructurings
The following table presents TDR’s as of June 30, 2021 and December 31, 2020:

June 30, 2021
  
TDR’s on
Non-accrual
    
Other
TDR’s
    
Total
TDR’s
  
                   
Residential real estate
  
$
1
    
$
211
    
$
212
  
Commercial real estate
                        
Owner occupied
    
-
      
184
      
184
  
Total
  
$
1
    
$
395
    
$
396
  

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 June 30, 2021 with some degree of payment modification under the CARES Act.

June 30, 2021
  
Modified to
Interest Only
Payment
    
Modified to Defer
Principal and
Interest Payment
    
Total
  
                   
Commercial real estate
                  
Owner occupied
  
$
967
    
$
-
    
$
967
  
Non-owner occupied
    
3,839
      
-
      
3,839
  
Construction and land
    
1,920
      
-
      
1,920
  
Total
  
$
6,726
    
$
-
    
$
6,726
  

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
  
Commercial 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 June 30, 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
  
$
368,576
    
$
2,401
    
$
8,670
    
$
-
    
$
379,647
  
Multifamily real estate
    
36,526
      
1,067
      
-
      
-
      
37,593
  
Commercial real estate:
                                        
Owner occupied
    
163,510
      
4,424
      
3,347
      
-
      
171,281
  
Non-owner occupied
    
309,471
      
24,188
      
5,759
      
-
      
339,418
  
Commercial and industrial
    
79,815
      
2,999
      
1,147
      
-
      
83,961
  
SBA PPP
    
73,404
      
-
      
-
      
-
      
73,404
  
Consumer
    
21,411
      
-
      
94
      
-
      
21,505
  
Construction and land
    
98,943
      
4,590
      
58
      
-
      
103,591
  
All other
    
35,535
      
26
      
-
      
-
      
35,561
  
Total
  
$
1,187,191
    
$
39,695
    
$
19,075
    
$
-
    
$
1,245,961
  

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