LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2021

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Schedule of major categories of loans

	June 30,			December 31,
	2021			2020
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	3,895	2	$	2,553	1
Farmland		347	0		350	—
Single-family residential		79,684	34		82,520	33
Multifamily		5,709	3		6,105	2
Commercial		57,856	25		57,027	23
Total loans secured by real estate		147,491			148,555
Commercial and Industrial
Commercial and industrial		9,008	4		10,800	4
SBA guaranty		7,183	3		7,200	3
Comm SBA PPP		5,237	2		9,912	4
Total commercial and industrial loans		21,428			27,912
Consumer Loans
Consumer		2,373	1		3,063	1
Automobile		63,579	26		74,242	29
Total consumer loans		65,952			77,305
Loans, net of deferred fees and costs		234,871	100		253,772	100
Less: Allowance for credit losses	$	(2,887)		$	(1,476)
Loans, net		231,984			252,296

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
June 30, 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		—		—		—		—		—		—		—		—		(1)		(123)		(124)
Recoveries		—		—		279		—		—		—		—		—		—		153		432
Provision for loan losses		17		(1)		(407)		(4)		24		(25)		(26)		—		16		(65)		(471)
Balance, end of quarter	$	42	$	10	$	1,239	$	98	$	441	$	162	$	16	$	—	$	72	$	807	$	2,887
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	10	$	—	$	10
Related loan balance		—		—		—		—		—		—		—		—		37		—		37
Collectively evaluated for impairment:
Balance in allowance	$	42	$	10	$	1,239	$	98	$	441	$	162	$	16	$	—	$	62	$	807	$	2,877
Related loan balance		3,895		347		79,684		5,709		57,856		9,008		7,183		5,237		2,336		63,579		234,834

	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

	June 30,			June 30,
(dollars in thousands)	2021			2020
Average loans	$	244,416		$	284,168
Net charge offs to average loans (annualized)		(0.25)	%		0.02	%

Schedule of reserve for unfunded commitments

	Six Months Ended
	Ended June 30,
(dollars in thousands)	2021		2020
Beginning balance	$	33	$	37
Impact of ASC 326 adoption		457		—
Reduction of unfunded reserve		(13)		—
Provisions charged to operations		—		60
Ending balance	$	477	$	97

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

At June 30, 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	$	3,895	$	—	$	—	$	—	$	3,895
Farmland		347		—		—		—		347
Single-family residential		79,535		—		15		134		79,684
Multifamily		5,709		—		—		—		5,709
Commercial		54,019		—		—		3,837		57,856
Total loans secured by real estate		143,505		—		15		3,971		147,491
Commercial and Industrial
Commercial and industrial		9,008		—		—		—		9,008
SBA guaranty		7,112		71		—		—		7,183
Comm SBA PPP		5,237		—		—		—		5,237
Total commercial and industrial loans		21,357		71		—		—		21,428
Consumer Loans
Consumer		2,366		7		—		—		2,373
Automobile		63,089		352		—		138		63,579
Total consumer loans		65,455		359		—		138		65,952
	$	230,317	$	430	$	15	$	4,109	$	234,871

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
Multifamily		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

June 30, 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		37		1		10		49
Multifamily		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		27		37		1		10		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	$	37	$	1	$	10	$	49
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		102		102		—		n/a		100
Multifamily		—		—		—		n/a		—
Commercial		3,837		3,837		317		n/a		4,456
Total loans secured by real estate		3,939		3,939		317		—		4,556
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		138		138		4		n/a		158
Total consumer loans		138		138		4		n/a		158
Total impaired loans with no specific reserve	$	4,077	$	4,077	$	321	$	—	$	4,713

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		27		38		2		11		50
Multifamily		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		27		38		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	$	27	$	38	$	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		232		232		—		n/a		544
Multifamily		—		—		—		n/a		—
Commercial		4,493		4,493		185		n/a		4,315
Total loans secured by real estate		4,725		4,725		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		117		117		10		n/a		227
Total consumer loans		151		151		14		n/a		270
Total impaired loans with no specific reserve	$	4,876	$	4,876	$	199	$	—	$	5,129

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

	June 30,			December 31,
(dollars in thousands)	2021			2020
Troubled debt restructured loans	$	37		$	39
Non-accrual and 90+ days past due and still accruing loans to average loans		1.69	%		1.63	%
Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans		69.9	%		32.6	%

Schedule of non accrual loans

	Loans Secured By Real Estate						Consumer Loans
	Single-family
(dollars in thousands)	Residential		Multifamily		Commercial		Consumer		Automobile		Total
December 31, 2019	$	790	$	24	$	3,139	$	51	$	123	$	4,127
Transfers into nonaccrual		—		—		577		—		254		831
Loans paid down/payoffs		(139)		(5)		(67)		(6)		(35)		(252)
Loans returned to accrual status		—		—		(577)		—		(17)		(594)
Loans charged off		—		—		—		—		(171)		(171)
June 30, 2020	$	651	$	19	$	3,072	$	45	$	154	$	3,941
December 31, 2020	$	270	$	—	$	4,029	$	34	$	179	$	4,512
Transfers into nonaccrual		—		—		920		1		134		1,055
Loans paid down/payoffs		(136)		—		(496)		(1)		(52)		(685)
Loans returned to accrual status	$	—	$	—	$	(616)	$	(34)	$	—	$	(650)
Loans charged off		—		—		—		—		(123)		(123)
June 30, 2021	$	134	$	—	$	3,837	$	—	$	138	$	4,109

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 on June 30, 2021, and December 31, 2020:

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
June 30, 2021	Construction				Single-family						Commercial				Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multifamily		Commercial		and Industrial		SBA Guaranty		SBA PPP		Consumer		Automobile		Total
Pass	$	3,895	$	347	$	79,550	$	5,709	$	54,019	$	9,008	$	7,183	$	5,237	$	2,373	$	63,440	$	230,761
Special mention		—		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		134		—		3,837		—		—		—		—		73		4,044
Doubtful		—		—		—		—		—		—		—		—		—		66		66
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	3,895	$	347	$	79,684	$	5,709	$	57,856	$	9,008	$	7,183	$	5,237	$	2,373	$	63,579	$	234,871
Nonaccrual	$	—	$	—	$	134	$	—	$	3,837	$	—	$	—	$	—	$	—	$	138	$	4,109
Troubled debt restructures	$	—	$	—	$	37	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	37
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	37	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		—		1

	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		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