LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2021

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Schedule of major categories of loans

	March 31,			December 31,
	2021			2020
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	3,174	1	$	2,553	1
Farmland		349	—		350	—
Single-family residential		82,820	34		82,520	33
Multi-family		6,069	2		6,105	2
Commercial		55,723	23		57,027	23
Total loans secured by real estate		148,135			148,555
Commercial and Industrial
Commercial and industrial		9,521	4		10,800	4
SBA guaranty		7,192	3		7,200	3
Comm SBA PPP		11,244	5		9,912	4
Total commercial and industrial loans		27,957			27,912
Consumer Loans
Consumer		2,482	1		3,063	1
Automobile		68,279	27		74,242	29
Total consumer loans		70,761			77,305
Loans, net of deferred fees and costs		246,853	100		253,772	100
Less:  Allowance for loan losses	$	(2,921)		$	(1,476)
Loans, net		243,932			252,296

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
March 31, 2021	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Balance, beginning of year	$	9	$	2	$	513	$	39	$	218	$	67	$	48	$	—	$	11	$	569	$	1,476
Impact of ASC 326 adoption		16		9		854		63		199		120		(6)		—		46		273		1,574
Charge-offs		—		—		—		—		—		—		—		—		—		(81)		(81)
Recoveries		—		—		275		—		—		—		—		—		—		81		356
Provision for loan losses		7		(1)		(272)		—		(8)		(19)		(1)		—		(11)		(99)		(404)
Balance, end of quarter	$	32	$	10	$	1,370	$	102	$	409	$	168	$	41	$	—	$	46	$	743	$	2,921
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	11	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	11
Related loan balance		—		—		38		—		—		—		—		—		—		—		38
Collectively evaluated for impairment:
Balance in allowance	$	32	$	10	$	1,359	$	102	$	409	$	168	$	41	$	—	$	46	$	743	$	2,910
Related loan balance		3,174		349		82,782		6,069		55,723		9,521		7,192		11,244		2,482		68,279		246,815

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
December 31, 2020	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Balance, beginning of year	$	24	$	2	$	849	$	40	$	241	$	69	$	25	$	—	$	11	$	805	$	2,066
Charge-offs		—		—		—		—		—		—		—		—		—		(392)		(392)
Recoveries		—		—		266		—		—		20		—		—		6		199		491
Provision for loan losses		(15)		—		(602)		(1)		(23)		(22)		23		—		(6)		(43)		(689)
Balance, end of the year	$	9	$	2	$	513	$	39	$	218	$	67	$	48	$	—	$	11	$	569	$	1,476
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	11	$	—	$	11
Related loan balance		—		—		132		—		—		4,493		—		—		39		—		4,664
Collectively evaluated for impairment:
Balance in allowance	$	9	$	2	$	513	$	39	$	218	$	67	$	48	$	—	$	—	$	569	$	1,465
Related loan balance		2,553		350		82,388		6,105		57,027		6,307		7,200		9,912		3,024		74,242		249,108

Schedule of allowances for credit losses

	March 31,			March 31,
(dollars in thousands)	2021			2020
Average loans	$	248,920		$	281,335
Net charge offs to average loans (annualized)		(0.44)	%		0.10	%

Schedule of reserve for unfunded commitments

	Three Months Ended
	Ended March 31,
(dollars in thousands)	2021		2020
Beginning balance	$	33	$	37
Impact of ASC 326 adoption		457		—
Reduction of unfunded reserve		(12)		—
Provisions charged to operations		—		13
Ending balance	$	478	$	50

Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans

At March 31, 2021					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Loans Secured by Real Estate
Construction and land	$	3,174	$	—	$	—	$	—	$	3,174
Farmland		349		—		—		—		349
Single-family residential		82,616		51		16		137		82,820
Multi-family		6,069		—		—		—		6,069
Commercial		51,212		345		—		4,166		55,723
Total loans secured by real estate		143,420		396		16		4,303		148,135
Commercial and Industrial
Commercial and industrial		9,521		—		—		—		9,521
SBA guaranty		7,192		—		—		—		7,192
Comm SBA PPP		11,244		—		—		—		11,244
Total commercial and industrial loans		27,957		—		—		—		27,957
Consumer Loans
Consumer		2,481		1		—		—		2,482
Automobile		67,919		221		—		139		68,279
Total consumer loans		70,400		222		—		139		70,761
	$	241,777	$	618	$	16	$	4,442	$	246,853

At December 31, 2020					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Loans Secured by Real Estate
Construction and land	$	2,553	$	—	$	—	$	—	$	2,553
Farmland		350		—		—		—		350
Single-family residential		82,232		—		18		270		82,520
Multi-family		6,105		—		—		—		6,105
Commercial		52,245		753		—		4,029		57,027
Total loans secured by real estate		143,485		753		18		4,299		148,555
Commercial and Industrial										—
Commercial and industrial		10,800		—		—		—		10,800
SBA guaranty		7,200		—		—		—		7,200
Comm SBA PPP		9,912		—		—		—		9,912
Total commercial and industrial loans		27,912		—		—		—		27,912
Consumer Loans										—
Consumer		3,028		1		—		34		3,063
Automobile		73,551		512		—		179		74,242
Total consumer loans		76,579		513		—		213		77,305
										0
	$	247,976	$	1,266	$	18	$	4,512	$	253,772

Schedule of impaired financing receivables

March 31, 2021			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	—	$	—
Farmland		—		—		—		—		—
Single-family residential		27		38		1		11		49
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		27		38		1		11		49
Commercial and Industrial
Commercial and industrial		—		—		—		—		—
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	27	$	38	$	1	$	11	$	49
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		99		99		—		n/a		100
Multi-family		—		—		—		n/a		—
Commercial		4,166		4,166		286		n/a		4,777
Total loans secured by real estate		4,265		4,265		286		—		4,877
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		139		139		2		n/a		149
Total consumer loans		139		139		2		n/a		149
Total impaired loans with no specific reserve	$	4,404	$	4,404	$	288	$	—	$	5,027

December 31, 2020			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	—	$	—
Farmland		—		—		—		—		—
Single-family residential		28		39		2		11		50
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		28		39		2		11		50
Commercial and Industrial
Commercial and industrial		—		—		—		—		—
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	28	$	39	$	2	$	11	$	50
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		171		322		—		n/a		544
Multi-family		—		—		—		n/a		—
Commercial		4,493		4,493		185		n/a		4,315
Total loans secured by real estate		4,664		4,815		185		—		4,859
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		34		34		4		n/a		43
Automobile		178		178		10		n/a		227
Total consumer loans		212		212		14		n/a		270
Total impaired loans with no specific reserve	$	4,876	$	5,027	$	199	$	—	$	5,129

Schedule of allowance for loan loss and the unearned income on loans

	March 31,			December 31,
(dollars in thousands)	2021			2020
Troubled debt restructured loans	$	38		$	39
Non-accrual and 90+ days past due and still accruing loans to average loans		1.79	%		1.63	%
Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans		65.5	%		32.6	%

Schedule of non accrual loans

	Loans Secured By Real Estate						Consumer Loans
	Single-family
(dollars in thousands)	Residential		Multi-family		Commercial		Consumer		Automobile		Total
December 31, 2019	$	790	$	24	$	3,139	$	51	$	123	$	4,127
Transfers into nonaccrual		—		—		—		—		177		177
Loans paid down/payoffs		(11)		(4)		(32)		(5)		(22)		(74)
Loans returned to accrual status		—		—		—		—		(17)		(17)
Loans charged off		—		—		—		—		(125)		(125)
March 31, 2020	$	779	$	20	$	3,107	$	46	$	136	$	4,088
December 31, 2020	$	270	$	—	$	4,029	$	34	$	179	$	4,512
Transfers into nonaccrual		—		—		574		—		69		643
Loans paid down/payoffs		(133)		—		(437)		(1)		(27)		(598)
Loans returned to accrual status	$	—	$	—	$	—	$	(33)	$	—	$	(33)
Loans charged off		—		—		—		—		(82)		(82)
March 31, 2021	$	137	$	—	$	4,166	$	—	$	139	$	4,442

Schedule of risk ratings of loans by categories of loans

The following tables provides information with respect to the Company's credit quality indicators by loan portfolio segment at March 31, 2021 and December 31, 2020:

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
March 31, 2021	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Pass	$	3,174	$	349	$	82,721	$	6,069	$	51,557	$	9,521	$	7,192	$	11,244	$	2,482	$	68,140	$	242,449
Special mention		—		—		—		—		559		—		—		—		—		—		559
Substandard		—		—		99		—		3,607		—		—		—		—		88		3,794
Doubtful		—		—		—		—		—		—		—		—		—		51		51
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	3,174	$	349	$	82,820	$	6,069	$	55,723	$	9,521	$	7,192	$	11,244	$	2,482	$	68,279	$	246,853
Nonaccrual	$	—	$	—	$	137	$	—	$	4,166	$	—	$	—	$	—	$	—	$	139	$	4,442
Troubled debt restructures	$	—	$	—	$	38	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	38
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	38	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		—		1

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
December 31, 2020	Construction				Singlefamily						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multifamily		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Pass	$	2,553	$	350	$	82,310	$	6,105	$	52,534	$	10,800	$	7,200	$	9,912	$	3,030	$	74,064	$	248,858
Special mention		—		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		210		—		4,493		—		—		—		33		62		4,798
Doubtful		—		—		—		—		—		—		—		—		—		116		116
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	2,553	$	350	$	82,520	$	6,105	$	57,027	$	10,800	$	7,200	$	9,912	$	3,063	$	74,242	$	253,772
Nonaccrual	$	—	$	—	$	270	$	—	$	4,029	$	—	$	—	$	—	$	34	$	179	$	4,512
Troubled debt restructures	$	—	$	—	$	39	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	39
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	39	$	—	$	—	$	—	$	—	$	—	$	39	$	—	$	39
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		1		—		1