LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Schedule of major categories of loans

	June 30,			December 31,
	2022			2021
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	4,216	2	$	4,087	2
Farmland		338	—		342	—
Single-family residential		80,170	40		78,119	37
Multi-family		5,370	3		5,428	3
Commercial		45,081	22		48,729	23
Total loans secured by real estate		135,175			136,705
Commercial and Industrial
Commercial and industrial		9,073	5		10,003	5
SBA guaranty		6,255	3		6,397	3
Comm SBA PPP		263	—		1,047	—
Total commercial and industrial loans		15,591			17,447
Consumer Loans
Consumer		1,939	1		2,090	1
Automobile		47,993	24		54,150	26
Total consumer loans		49,932			56,240
Loans, net of deferred fees and costs		200,698	100		210,392	100
Less: Allowance for credit losses		(2,238)			(2,470)
Loans, net	$	198,460		$	207,922

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
June 30, 2022	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	$	5	$	11	$	1,357	$	105	$	278	$	115	$	30	$	—	$	36	$	533	$	2,470
Charge-offs		—		—		—		—		—		—		(9)		—		(10)		(88)		(107)
Recoveries		—		—		—		—		—		—		—		—		7		85		92
Release for credit losses		26		10		(124)		(2)		(46)		(5)		1		—		—		(77)		(217)
Balance, end of quarter	$	31	$	21	$	1,233	$	103	$	232	$	110	$	22	$	—	$	33	$	453	$	2,238
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	14	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	14
Related loan balance		—		—		35		—		—		—		—		—		—		—		35
Collectively evaluated for impairment:
Balance in allowance	$	31	$	21	$	1,219	$	103	$	232	$	110	$	22	$	—	$	33	$	453	$	2,224
Related loan balance		4,216		338		80,135		5,370		45,081		9,073		6,255		263		1,939		47,993		200,663

	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 the 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

Schedule of allowances for credit losses

	June 30,			June 30,
(dollars in thousands)	2022			2021
Average loans	$	204,477		$	244,416
Net charge offs to average loans (annualized)		0.01	%		(0.25)	%

Schedule of reserve for unfunded commitments

	Six Months Ended
	Ended June 30,
(dollars in thousands)	2022		2021
Beginning balance	$	371	$	33
Impact of ASC 326 adoption		—		457
Reduction of unfunded reserve		(17)		(13)
Provisions charged to operations		59		—
Ending balance	$	413	$	477

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

At June 30, 2022					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	$	4,216	$	—	$	—	$	—	$	4,216
Farmland		338		—		—		—		338
Single-family residential		80,008		40		12		110		80,170
Multi-family		5,370		—		—		—		5,370
Commercial		45,081		—		—		—		45,081
Total loans secured by real estate		135,013		40		12		110		135,175
Commercial and Industrial
Commercial and industrial		9,073		—		—		—		9,073
SBA guaranty		6,255		—		—		—		6,255
Comm SBA PPP		263		—		—		—		263
Total commercial and industrial loans		15,591		—		—		—		15,591
Consumer Loans
Consumer		1,939		—		—		—		1,939
Automobile		47,644		239		—		110		47,993
Total consumer loans		49,583		239		—		110		49,932
	$	200,187	$	279	$	12	$	220	$	200,698

At December 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	$	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

Schedule of impaired financing receivables

June 30, 2022			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		21		35		1		14		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		21		35		1		14		48
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	$	21	$	35	$	1	$	14	$	48
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		75		75		2		n/a		99
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		75		75		2		—		99
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		110		110		3		n/a		171
Total consumer loans		110		110		3		n/a		171
Total impaired loans with no specific reserve	$	185	$	185	$	5	$	—	$	270

December 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		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

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

	June 30,			December 31,
(dollars in thousands)	2022			2021
Troubled debt restructured loans	$	35		$	36
Non-accrual and 90+ days past due and still accruing loans to average loans		0.11	%		0.16	%
Allowance for credit losses to nonaccrual & 90+ days past due and still accruing loans		964.4	%		703.7	%

Schedule of non accrual loans

					Commercial and
	Loans Secured By Real Estate				Industrial Loans		Consumer Loans
	Single-family
(dollars in thousands)	Residential		Commercial		SBA Guaranty		Consumer		Automobile		Total
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
December 31, 2021	$	123	$	—	$	71	$	—	$	144	$	338
Transfers into nonaccrual		31		—		—		11		131		173
Loans paid down/payoffs		(44)		—		(61)		(11)		(63)		(179)
Loans returned to accrual status		—		—		—		—		(29)		(29)
Loans charged off		—		—		(10)		—		(73)		(83)
June 30, 2022	$	110	$	—	$	—	$	—	$	110	$	220

Schedule of risk ratings of loans by categories of loans

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
June 30, 2022	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	$	4,216	$	338	$	80,060	$	5,370	$	45,081	$	9,073	$	6,255	$	263	$	1,939	$	47,883	$	200,478
Special mention		—		—		—		—		—		—		—		—		—		4		4
Substandard		—		—		110		—		—		—		—		—		—		92		202
Doubtful		—		—		—		—		—		—		—		—		—		14		14
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	4,216	$	338	$	80,170	$	5,370	$	45,081	$	9,073	$	6,255	$	263	$	1,939	$	47,993	$	200,698
Nonaccrual	$	—	$	—	$	110	$	—	$	—	$	—	$	—	$	—	$	—	$	110	$	220
Troubled debt restructures	$	—	$	—	$	35	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	35
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	35	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	35
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		—		1

	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