LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2022

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Schedule of major categories of loans

	September 30,			December 31,
	2022			2021
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	5,362	3	$	4,087	2
Farmland		336	—		342	—
Single-family residential		80,134	40		78,119	37
Multi-family		5,337	3		5,428	3
Commercial		44,431	23		48,729	23
Total loans secured by real estate		135,600			136,705
Commercial and Industrial
Commercial and industrial		8,859	5		10,003	5
SBA guaranty		6,203	3		6,397	3
Comm SBA PPP		-	—		1,047	—
Total commercial and industrial loans		15,062			17,447
Consumer Loans
Consumer		1,523	1		2,090	1
Automobile		41,895	22		54,150	26
Total consumer loans		43,418			56,240
Loans, net of deferred fees and costs		194,080	100		210,392	100
Less: Allowance for credit losses		(2,275)			(2,470)
Loans, net	$	191,805		$	207,922

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
September 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)		(132)		(151)
Recoveries		—		—		—		—		—		—		—		—		7		127		134
Release (provision) for credit losses		45		9		(119)		(4)		(57)		105		—		—		(9)		(148)		(178)
Balance, end of quarter	$	50	$	20	$	1,238	$	101	$	221	$	220	$	21	$	—	$	24	$	380	$	2,275
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	18	$	—	$	109	$	—	$	—	$	—	$	—	$	—	$	127
Related loan balance		—		—		35		—		499		—		—		—		—		—		534
Collectively evaluated for impairment:
Balance in allowance	$	50	$	20	$	1,220	$	101	$	112	$	220	$	21	$	—	$	24	$	380	$	2,148
Related loan balance		5,362		336		80,099		5,337		43,932		8,859		6,203		—		1,523		41,895		193,546

	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 (provision) 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

	September 30,			September 30,
(dollars in thousands)	2022			2021
Average loans	$	197,199		$	239,492
Net charge offs to average loans (annualized)		0.00	%		(0.19)	%

Schedule of reserve for unfunded commitments

	Nine Months Ended
	Ended September 30,
(dollars in thousands)	2022		2021
Beginning balance	$	371	$	33
Impact of ASC 326 adoption		—		457
Reduction of unfunded reserve		(76)		(34)
Provisions charged to operations		174		—
Ending balance	$	469	$	456

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

At September 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	$	5,362	$	—	$	—	$	—	$	5,362
Farmland		336		—		—		—		336
Single-family residential		79,811		204		11		108		80,134
Multi-family		5,337		—		—		—		5,337
Commercial		44,431		—		—		—		44,431
Total loans secured by real estate		135,277		204		11		108		135,600
Commercial and Industrial
Commercial and industrial		8,360		499		—		—		8,859
SBA guaranty		6,203		—		—		—		6,203
Comm SBA PPP		—		—		—		—		—
Total commercial and industrial loans		14,563		499		—		—		15,062
Consumer Loans
Consumer		1,439		84		—		—		1,523
Automobile		41,636		184		—		75		41,895
Total consumer loans		43,075		268		—		75		43,418
	$	192,915	$	971	$	11	$	183	$	194,080

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

September 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		17		35		1		18		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		17		35		1		18		48
Commercial and Industrial
Commercial and industrial		390		499		19		109		499
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		390		499		19		109		499
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	407	$	534	$	20	$	127	$	547
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		73		73		1		n/a		80
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		73		73		1		—		80
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		75		75		4		n/a		95
Total consumer loans		75		75		4		n/a		95
Total impaired loans with no specific reserve	$	148	$	148	$	5	$	—	$	175

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

	September 30,			December 31,
(dollars in thousands)	2022			2021
Troubled debt restructured loans	$	34		$	36
Non-accrual and 90+ days past due and still accruing loans to average loans		0.10	%		0.16	%
Allowance for credit losses to nonaccrual & 90+ days past due and still accruing loans		1,171.4	%		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		71		1		204		1,196
Loans paid down/payoffs		(138)		(1,881)		—		(1)		(68)		(2,088)
Loans returned to accrual status		—		(616)		—		(34)		—		(650)
Loans charged off		—		—		—		—		(189)		(189)
September 30, 2021	$	132	$	2,452	$	71	$	—	$	126	$	2,781
December 31, 2021	$	123	$	—	$	71	$	—	$	144	$	338
Transfers into nonaccrual		31		—		—		11		151		193
Loans paid down/payoffs		(46)		—		(61)		(11)		(73)		(191)
Loans returned to accrual status		—		—		—		—		(29)		(29)
Loans charged off		—		—		(10)		—		(118)		(128)
September 30, 2022	$	108	$	—	$	—	$	—	$	75	$	183

Schedule of risk ratings of loans by categories of loans

	Loans Secured By Real Estate										Commercial and Industrial Loans						Consumer Loans
September 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	$	5,362	$	336	$	80,026	$	5,337	$	44,431	$	8,360	$	6,203	$	—	$	1,523	$	41,820	$	193,398
Special mention		—		—		—		—		—		499		—		—		—		—		499
Substandard		—		—		108		—		—		—		—		—		—		71		179
Doubtful		—		—		—		—		—		—		—		—		—		4		4
Loss		—		—		—		—		—		—		—		—		—		—		—
	$	5,362	$	336	$	80,134	$	5,337	$	44,431	$	8,859	$	6,203	$	—	$	1,523	$	41,895	$	194,080
Nonaccrual	$	—	$	—	$	108	$	—	$	—	$	—	$	—	$	—	$	—	$	75	$	183
Troubled debt restructures	$	—	$	—	$	34	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	34
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	34	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	34
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