Loans and Allowance for Credit Losses - Loans

12 Months Ended

Dec. 31, 2021

Loans and Allowance for Credit Losses - Loans

Loans and Allowance for Credit Losses - Loans

Note 4. Loans and Allowance for Credit Losses - Loans

The following table sets forth the Company's gross loans by major categories as of December 31, 2021 and 2020:

	December 31,
(dollars in thousands)	2021		2020
Loans Secured by Real Estate
Construction and land	$	4,087	$	2,553
Farmland		342		350
Singlefamily residential		78,119		82,520
Multifamily		5,428		6,105
Commercial		48,729		57,027
Total loans secured by real estate		136,705		148,555
Commercial and Industrial
Commercial and industrial		10,003		10,800
SBA guaranty		6,397		7,200
Comm SBA PPP		1,047		9,912
Total commercial and industrial loans		17,447		27,912
Consumer Loans
Consumer		2,090		3,063
Automobile		54,150		74,242
Total consumer loans		56,240		77,305
Loans, net of deferred fees and costs		210,392		253,772
Less: Allowance for credit losses		(2,470)		(1,476)
Loans, net	$	207,922	$	252,296

The Company currently manages its credit products and the respective exposure to credit losses by specific portfolio segments and classes, which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses. The Company believes each portfolio segment has unique risk characteristics. The Company's loans held for investment is divided into three portfolio segments: loans secured by real estate, commercial and industrial loans, and consumer loans. Each of these segments is further divided into loan classes for purposes of estimating the allowance for credit losses. The Bank’s indirect loan group included $54.2 million and $74.2 million of such loans at December 31, 2021 and 2020, respectively. The Commercial Small Business Administration (SBA) Paycheck Protection Program (PPP) loan balance was $1.0 million and $10.0 million at December 31, 2021 and 2020, respectively. This loan type is discussed in “Note 1. Nature of Business.”

The Bank makes loans to customers located primarily in Anne Arundel County and surrounding areas of Central Maryland. Although the loan portfolio is diversified, its performance will be influenced by the economy of the region.

Included in loans are loans due from directors, executive officers and other related parties of $0 at December 31, 2021, and $0.3 million at December 31, 2020. These loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with unrelated borrowers. The Board of Directors approves loans to directors, executive officers and other related parties to confirm that collateral requirements, terms and

rates are comparable to other borrowers and are in compliance with underwriting policies. The following presents the activity in amount due from directors and other related parties for the years ended December 31, 2021 and 2020.

	December 31,
(dollars in thousands)	2021		2020
Balance at beginning of year	$	276	$	371
Additions		90		368
Repayments		(366)		(463)
Balance at end of year	$	—	$	276

Allowance for Credit Losses

Credit Risk and Allowance for Credit Losses - Loans. Credit risk is the risk of loss arising from the inability of a borrower to meet his or her obligations and entails both general risks, which are inherent in the process of lending, and risks specific to individual borrowers. Credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry, or collateral type. Residential mortgage and home equity loans and lines generally have the lowest credit loss experience. Loans secured by personal property, such as auto loans, generally experience medium credit losses. Unsecured loan products, such as personal revolving credit, have the highest credit loss experience and for that reason, the Bank has chosen not to engage in a significant amount of this type of lending. Credit risk in commercial lending can vary significantly, as losses as a percentage of outstanding loans can shift widely during economic cycles and are particularly sensitive to changing economic conditions. Generally, improving economic conditions result in improved operating results on the part of commercial customers, enhancing their ability to meet their particular debt service requirements. Improvements, if any, in operating cash flows can be offset by the impact of rising interest rates that may occur during improved economic times. Inconsistent economic conditions may have an adverse effect on the operating results of commercial customers, reducing their ability to meet debt service obligations.

On January 1, 2021, the Company early adopted ASU 2016-13, Financial Instruments - Credit Losses (“ASC 326”) which replaces the “incurred loss approach” for estimating credit losses with an expected loss methodology. The incurred loss model delayed the recognition of credit losses until it was probable that a loss had occurred, while the CECL model requires the immediate recognition of expected credit losses over the contractual term for financial instruments that fall within the scope of CECL at the date of origination or purchase of the financial instrument. The CECL model, which is applicable to the measurement of credit losses on financial assets measured at amortized cost and certain off-balance sheet credit exposures, affects the Company’s estimates of the allowance for credit losses for our loan portfolio and the reserve for our off-balance sheet credit exposures related to loan commitments. The allowance for credit losses - loans is established through a provision for credit losses charged to expense. Loans are charged against the allowance for credit losses - loans when management believes that the collectability of the principal is unlikely. The allowance, based on all available information from internal and external sources, relevant to assessing the collectability of loans over their contractual terms, adjusted for expected prepayments when appropriate, is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectible. The evaluations are performed for each class of loans and take into consideration factors such as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, value of collateral securing the loans and current economic conditions and trends that may affect the borrowers’ ability to pay. For example, delinquencies in unsecured loans and indirect automobile installment loans will be reserved for at significantly higher ratios than loans secured by real estate. Finally, the Company considers forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Based on that analysis, the Bank deems its allowance for credit losses - loans in proportion to the total nonaccrual loans and past due loans to be sufficient.

As a result of the adoption of ASC 326 in the first quarter of 2021, with an effective date of January 1, 2021, there is a lack of comparability in both the allowance and provisions for credit losses for the periods presented. Results for reporting periods beginning after January 1, 2021 are presented using the CECL methodology, while comparative period information continues to be reported in accordance with the incurred loss methodology in effect for prior years.

The following table presents the total allowance by loan segment:

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
December 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		—		—		—		—		—		—		—		—		(2)		(251)		(253)
Recoveries		—		—		408		—		—		—		—		—		—		240		648
Release for credit losses		(20)		—		(418)		3		(139)		(72)		(12)		—		(19)		(298)		(975)
Balance, end of year	$	5	$	11	$	1,357	$	105	$	278	$	115	$	30	$	—	$	36	$	533	$	2,470
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	10
Related loan balance		—		—		36		—		—		—		—		—		—		—		36
Collectively evaluated for impairment:
Balance in allowance	$	5	$	11	$	1,347	$	105	$	278	$	115	$	30	$	—	$	36	$	533	$	2,460
Related loan balance		4,087		342		78,083		5,428		48,729		10,003		6,397		1,047		2,090		54,150		210,356

	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
Release for credit losses		(15)		—		(602)		(1)		(23)		(22)		23		—		(6)		(43)		(689)
Balance, end of 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

Management believes the allowance for credit losses is at an appropriate level to absorb inherent probable losses in the portfolio.

The following table rolls forward the Company’s activity for nonaccrual loans during the years 2021 and 2020:

							Commercial and
	Loans Secured By Real Estate						Industrial Loans		Consumer Loans
	Single-family
	Residential		Multi-family		Commercial		SBA Guaranty		Consumer		Automobile			Total
(dollars in thousands)
December 31, 2019	$	790	$	24	$	3,139	$	—	$	51	$	123	$	4,127
Transfers into nonaccrual		64		—		1,619		—		—		551		2,234
Loans paid down/payoffs		(584)		(24)		(152)		—		(17)		(103)		(880)
Loans returned to accrual status		—		—		(577)		—		—		(17)		(594)
Loans charged off		—		—		—		—		—		(375)		(375)
December 31, 2020	$	270	$	—	$	4,029	$	—	$	34	$	179	$	4,512
Transfers into nonaccrual						920		71		1		291		1,283
Loans paid down/payoffs		(147)	$	—		(3,987)	$	—		(1)		(83)		(4,218)
Loans returned to accrual status		—		—		(962)		—		(34)		—		(996)
Loans charged off		—		—		—		—		—		(243)		(243)
December 31, 2021	$	123	$	—	$	—	$	71	$	—	$	144	$	338

Credit Quality Information

In addition to monitoring the performance status of the loan portfolio, the Company utilizes a risk rating scale (1-8) to evaluate loan asset quality for all loans. Loans that are rated 1-4 are classified as “pass” credits. For the pass rated loans, management believes there is a low risk of loss related to these loans and as necessary, credit may be strengthened through improved borrower performance and/or additional collateral. Loans rated a 5 (Special Mention) are pass credits, but are loans that have been identified that warrant additional attention and monitoring and represent “criticized” assets. Loans rated a 6 (Substandard) or higher are considered “criticized” loans and represent an increased level of credit risk. The use and application of these risk ratings by the Bank conform to the Bank's policy and regulatory definitions.

The Bank’s internal risk ratings are as follows:

1 – 4 (Pass) - Pass credits are loans in grades “superior” through “acceptable”. These are at least considered to be credits with acceptable risks and would be granted in the normal course of lending operations.

5 (Special Mention) - Special mention credits have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credits or in the Bank’s credit position at some future date. If weaknesses cannot be identified, classifying as special mention is not appropriate. Special mention credits are not adversely classified and do not expose the Bank to sufficient risk to warrant an adverse classification. No apparent loss of principal or interest is expected.

6 (Substandard) - Substandard credits are inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged. Financial statements normally reveal some or all of the following: poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Credits so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

7 (Doubtful) - A doubtful credit has all the weaknesses inherent in a substandard asset with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and

refinancing plans. Doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded Substandard.

In the normal course of loan portfolio management, loan originators are responsible for continuous assessment of credit risk arising from the individual borrowers within their portfolio and assigning appropriate risk ratings. Credit Administration is responsible for ensuring the integrity and operation of the risk rating system and maintenance of the watch list. The Bank contracts with an independent 3^rd party loan review firm that reviews and validates the internal credit risk program on an annual basis. Results of these reviews are presented to the Audit Committee for approval and then to management for implementation. The loan review process compliments and reinforces the risk identification and assessment decisions made by the lenders and credit personnel as well as the Bank’s policies and procedures.

The following table provides information with respect to the Company's risk ratings by loan portfolio segment:

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
December 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	$	4,072	$	342	$	77,996	$	5,428	$	45,307	$	10,003	$	6,326	$	1,047	$	2,084	$	54,006	$	206,611
Special mention		15		—		—		—		3,422		—		—		—		6		4		3,447
Substandard		—		—		123		—		—		—		71		—		—		50		244
Doubtful		—		—		—		—		—		—		—		—		—		90		90
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	4,087	$	342	$	78,119	$	5,428	$	48,729	$	10,003	$	6,397	$	1,047	$	2,090	$	54,150	$	210,392
Nonaccrual	$	—	$	—	$	123	$	—	$	—	$	—	$	71	$	—	$	—	$	144	$	338
Troubled debt restructures	$	—	$	—	$	36	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	36
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	36	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	36
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		Multi-family		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
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		—		1

The following tables provide information about credit quality indicators by the year of origination at December 31, 2021 and 2020:

	Origination Year
(dollars in thousands)	2021		2020		2019		2018		2017		Prior		Total
December 31, 2021
Loans Secured By Real Estate:
Pass	$	16,498	$	12,135	$	10,671	$	13,558	$	6,715	$	73,568	$	133,145
Special mention		—		—		—		787		—		2,650		3,437
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		123		123
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	16,498	$	12,135	$	10,671	$	14,345	$	6,715	$	76,341	$	136,705
Commercial and Industrial Loans:
Pass	$	2,766	$	4,172	$	1,066	$	4,128	$	1,198	$	4,046	$	17,376
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		71		71
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	2,766	$	4,172	$	1,066	$	4,128	$	1,198	$	4,117	$	17,447
Consumer Loans:
Pass	$	12,271	$	8,222	$	11,176	$	16,706	$	4,908	$	2,808	$	56,091
Special mention		—		—		—		5		—		—		5
Substandard		—		—		—		—		—		—		—
Nonaccrual		28		5		38		40		29		4		144
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	12,299	$	8,227	$	11,214	$	16,751	$	4,937	$	2,812	$	56,240

	Origination Year
(dollars in thousands)	2020		2019		2018		2017		2016		Prior		Total
December 31, 2020
Loans Secured By Real Estate:
Pass	$	13,432	$	11,902	$	17,234	$	10,472	$	12,013	$	78,801	$	143,854
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		402		402
Nonaccrual		—		—		—		2,597		—		1,702		4,299
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	13,432	$	11,902	$	17,234	$	13,069	$	12,013	$	80,905	$	148,555
Commercial and Industrial Loans:
Pass	$	14,906	$	1,855	$	4,034	$	1,686	$	1,338	$	4,093	$	27,912
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	14,906	$	1,855	$	4,034	$	1,686	$	1,338	$	4,093	$	27,912
Consumer Loans:
Pass	$	11,315	$	17,415	$	29,259	$	11,835	$	4,456	$	2,812	$	77,092
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		21		120		32		5		35		213
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	11,315	$	17,436	$	29,379	$	11,867	$	4,461	$	2,847	$	77,305

Troubled Debt Restructurings

The restructuring of a loan constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider in the normal course of business. A concession may include an extension of repayment terms which would not normally be granted, a reduction of interest rate or the forgiveness of principal and/or accrued interest. If the debtor is experiencing financial difficulty and the creditor has granted a concession, the Company will make the necessary disclosures related to the TDR. In certain cases, a modification may be made in an effort to retain a customer who is not experiencing financial difficulty. This type of modification is not considered to be a TDR. Once a loan has been modified and is considered a TDR, it is reported as an impaired loan. All TDRs are evaluated individually for impairment on a quarterly basis as part of the allowance for credit losses calculation. A specific allowance for TDR loans is established when the discounted cash flows, collateral value or observable market price, whichever is appropriate, of the TDR is lower than the carrying value. If a loan deemed a TDR has performed for at least six months at the level prescribed by the modification, it is not considered to be non-performing; however, it will generally continue to be reported as impaired, but may be returned to accrual status. A TDR is deemed in default on its modified terms once a contractual payment is 30 or more days past due.

There were no new loans modified as TDRs for the years ended December 31, 2021 and 2020.

At December 31, 2021, the recorded investment in TDR’s reflected one loan in the amount of $36,139 which is on nonaccrual. At December 31, 2020, the recorded investment in TDR’s reflected one loan in the amount of $38,711 which was on nonaccrual.

The Bank has no commitments to loan additional funds to the borrowers of restructured, impaired, or nonaccrual loans.

Asset Quality

The following table presents the loan portfolio segments summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2021 and 2020:

					90 Days or
			30-89 Days		More and
December 31, 2021	Current		Past Due		Still Accruing		Nonaccrual		Total
(dollars in thousands)
Loans Secured by Real Estate
Construction and land	$	4,087	$	—	$	—	$	—	$	4,087
Farmland		342		—		—		—		342
Single-family residential		77,981		—		15		123		78,119
Multi-family		5,428		—		—		—		5,428
Commercial		48,729		—		—		—		48,729
Total loans secured by real estate		136,567		—		15		123		136,705
Commercial and Industrial
Commercial and industrial		10,003		—		—		—		10,003
SBA guaranty		6,326		—		—		71		6,397
Comm SBA PPP		1,047		—		—		—		1,047
Total commercial and industrial loans		17,376		—		—		71		17,447
Consumer Loans
Consumer		2,086		4		—		—		2,090
Automobile		53,655		351		—		144		54,150
Total consumer loans		55,741		355		—		144		56,240
	$	209,684	$	355	$	15	$	338	$	210,392

					90 Days or
			30-89 Days		More and
December 31, 2020	Current		Past Due		Still Accruing		Nonaccrual		Total
(dollars in thousands)
Loans Secured by Real Estate
Construction and land	$	2,553	$	—	$	—	$	—	$	2,553
Farmland		350		—		—		—		350
Singlefamily residential		81,057		1,175		18		270		82,520
Multi-family		6,105		—		—		—		6,105
Commercial		52,424		574		—		4,029		57,027
Total loans secured by real estate		142,489		1,749		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		3,029		—		—		34		3,063
Automobile		73,611		452		—		179		74,242
Total consumer loans		76,640		452		—		213		77,305
										0
	$	247,041	$	2,201	$	18	$	4,512	$	253,772

Loans on which the accrual of interest has been discontinued totaled $0.3 million and $4.5 million at December 31, 2021 and 2020, respectively. The Bank recognizes interest income on non-accrual loans using a cash basis method for the time they are on non-accrual.  Interest income that was recognized on these non-accrual loans totaled $14,000 and $201,000 for the years ended December 31, 2021 and 2020. Loans past due 90 days or more and still accruing

interest totaled $15,000, and $18,000 at December 31, 2021 and 2020, respectively. Management believes these particular loans are well secured and in the process of full collection of all amounts owed.

Nonaccrual loans with specific reserves at December 31, 2021 are comprised of:

Consumer – One loan to in the amount of $36,139 with $10,331 of specific reserves established for the loans.

Impaired Loans

The following table presents information with respect to impaired loans. Management determined the specific reserve in the allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less estimated selling costs is used to determine the specific allowance recorded.

			Unpaid		Interest				Average
December 31, 2021	Recorded		Principal		Income		Specific		Recorded
(dollars in thousands)	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	—	$	—
Farmland		—		—		—		—		—
Single-family residential		26		36		2		10		49
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		26		36		2		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	$	26	$	36	$	2	$	10	$	49
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		87		87		3		n/a		98
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		87		87		3		—		98
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		71		71		1		n/a		71
Total commercial and industrial loans		71		71		1		—		71
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		143		143		8		n/a		181
Total consumer loans		143		143		8		n/a		181
Total impaired loans with no specific reserve	$	301	$	301	$	12	$	—	$	350

			Unpaid		Interest				Average
December 31, 2020	Recorded		Principal		Income		Specific		Recorded
(dollars in thousands)	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		232		383		—		n/a		544
Multi-family		—		—		—		n/a		—
Commercial		4,493		4,493		185		n/a		4,315
Total loans secured by real estate		4,725		4,876		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	$	5,027	$	199	$	—	$	5,129