LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2023

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Schedule of major categories of loans

	June 30,			December 31,
	2023			2022
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	5,116	3	$	4,499	2
Farmland		328	—		333	—
Single-family residential		82,337	45		80,251	43
Multi-family		5,236	3		5,304	3
Commercial		42,557	24		42,936	23
Total loans secured by real estate		135,574			133,323
Commercial and Industrial
Commercial and industrial		10,250	6		8,990	5
SBA guaranty		6,023	3		6,158	3
Total commercial and industrial loans		16,273			15,148
Consumer Loans
Consumer		1,430	1		1,521	1
Automobile		27,274	15		36,448	20
Total consumer loans		28,704			37,969
Loans, net of deferred fees and costs		180,551	100		186,440	100
Less: Allowance for credit losses		(2,222)			(2,162)
Loans, net	$	178,329		$	184,278

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
June 30, 2023	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Balance, beginning of year	$	44	$	20	$	1,230	$	103	$	221	$	174	$	22	$	23	$	325	$	2,162
Charge-offs		—		—		—		—		—		—		—		—		(88)		(88)
Recoveries		—		—		—		—		—		—		—		—		63		63
Release (provision) for credit losses		2		(1)		26		(4)		(2)		143		—		(3)		(76)		85
Balance, end of quarter	$	46	$	19	$	1,256	$	99	$	219	$	317	$	22	$	20	$	224	$	2,222
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	21	$	—	$	149	$	—	$	—	$	—	$	—	$	170
Related loan balance		—		—		32		—		299		—		—		—		—		331
Collectively evaluated for impairment:
Balance in allowance	$	46	$	19	$	1,235	$	99	$	70	$	317	$	22	$	20	$	224	$	2,052
Related loan balance		5,116		328		82,305		5,236		42,258		10,250		6,023		1,430		27,274		180,220

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 2022	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Balance, beginning of year	$	5	$	11	$	1,357	$	105	$	278	$	115	$	30	$	36	$	533	$	2,470
Charge-offs		—		—		—		—		—		(200)		(9)		(14)		(169)		(392)
Recoveries		—		—		—		—		—		—		—		8		188		196
Release (provision) for credit losses		39		9		(127)		(2)		(57)		259		1		(7)		(227)		(112)
Balance, end of the year	$	44	$	20	$	1,230	$	103	$	221	$	174	$	22	$	23	$	325	$	2,162
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	20	$	—	$	—	$	59	$	—	$	—	$	—	$	79
Related loan balance		—		—		34		—		—		300		—		—		—		334
Collectively evaluated for impairment:
Balance in allowance	$	44	$	20	$	1,210	$	103	$	221	$	115	$	22	$	23	$	325	$	2,083
Related loan balance		4,499		333		80,217		5,304		42,936		8,690		6,158		1,521		36,448		186,106

Schedule of allowances for credit losses

	June 30,			June 30,
(dollars in thousands)	2023			2022
Average loans	$	183,240		$	204,477
Net charge offs to average loans (annualized)		0.03	%		0.01	%

Schedule of reserve for unfunded commitments

	Six Months Ended
	Ended June 30,
(dollars in thousands)	2023		2022
Beginning balance	$	477	$	371
Reduction of unfunded reserve		(4)		(17)
Provisions charged to operations		23		59
Ending balance	$	496	$	413

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

At June 30, 2023					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	$	5,116	$	—	$	—	$	—	$	5,116
Farmland		328		—		—		—		328
Single-family residential		82,121		—		—		216		82,337
Multi-family		5,236		—		—		—		5,236
Commercial		42,557		—		—		—		42,557
Total loans secured by real estate		135,358		—		—		216		135,574
Commercial and Industrial
Commercial and industrial		9,954		—		—		296		10,250
SBA guaranty		6,023		—		—		—		6,023
Total commercial and industrial loans		15,977		—		—		296		16,273
Consumer Loans
Consumer		1,430		—		—		—		1,430
Automobile		26,912		298		—		64		27,274
Total consumer loans		28,342		298		—		64		28,704
	$	179,677	$	298	$	—	$	576	$	180,551

At December 31, 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	$	4,499	$	—	$	—	$	—	$	4,499
Farmland		333		—		—		—		333
Single-family residential		79,952		185		10		104		80,251
Multi-family		5,304		—		—		—		5,304
Commercial		42,936		—		—		—		42,936
Total loans secured by real estate		133,024		185		10		104		133,323
Commercial and Industrial										—
Commercial and industrial		8,691		—		—		299		8,990
SBA guaranty		6,158		—		—		—		6,158
Total commercial and industrial loans		14,849		—		—		299		15,148
Consumer Loans
Consumer		1,521		—		—		—		1,521
Automobile		36,037		326		—		85		36,448
Total consumer loans		37,558		326		—		85		37,969
	$	185,431	$	511	$	10	$	488	$	186,440

Schedule of impaired financing receivables

June 30, 2023			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		11		32		2		21		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		11		32		2		21		48
Commercial and Industrial
Commercial and industrial		150		299		—		149		499
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		150		299		—		149		499
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	161	$	331	$	2	$	170	$	547
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		184		184		2		n/a		195
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		184		184		2		—		195
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		167		167		2		n/a		72
Total consumer loans		167		167		2		n/a		72
Total impaired loans with no specific reserve	$	351	$	351	$	4	$	—	$	267

December 31, 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		14		34		2		20		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		14		34		2		20		48
Commercial and Industrial
Commercial and industrial		240		299		19		59		499
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		240		299		19		59		499
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	254	$	333	$	21	$	79	$	547
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		70		70		2		n/a		79
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		70		70		2		—		79
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		85		85		6		n/a		107
Total consumer loans		85		85		6		n/a		107
Total impaired loans with no specific reserve	$	155	$	155	$	8	$	—	$	186

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

	June 30,			December 31,
(dollars in thousands)	2023			2022
Troubled debt restructured loans	$	41		$	34
Non-accrual and 90+ days past due and still accruing loans to average loans		0.31	%		0.25	%
Allowance for credit losses to nonaccrual & 90+ days past due and still accruing loans		385.8	%		433.9	%

Schedule of non accrual loans

					Commercial and
	Loans Secured By Real Estate				Industrial Loans					Consumer Loans
	Single-family				Commercial
(dollars in thousands)	Residential		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
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
December 31, 2022	$	104	$	—	$	299	$	—	$	—	$	85	$	488
Transfers into nonaccrual		307		—		—		—		—		3		310
Loans paid down/payoffs		(195)		—		—		—		—		(19)		(214)
Loans returned to accrual status		—		—		—		—		—		—		—
Loans charged off		—		—		(3)		—		—		(5)		(8)
June 30, 2023	$	216	$	—	$	296	$	—	$	—	$	64	$	576

Schedule of risk ratings of loans by categories of loans

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
June 30, 2023	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	5,116	$	328	$	82,121	$	5,236	$	42,557	$	9,951	$	6,023	$	1,430	$	27,107	$	179,869
Special mention		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		216		—		—		299		—		—		167		682
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	5,116	$	328	$	82,337	$	5,236	$	42,557	$	10,250	$	6,023	$	1,430	$	27,274	$	180,551
Nonaccrual	$	—	$	—	$	216	$	—	$	—	$	296	$	—	$	—	$	64	$	576
Troubled debt restructures	$	—	$	—	$	41	$	—	$	—	$	—	$	—	$	—	$	—	$	41
Number of TDRs accounts		—		—		2		—		—		—		—		—		—		2
Non-performing TDRs	$	—	$	—	$	41	$	—	$	—	$	—	$	—	$	—	$	—	$	41
Number of non-performing TDR accounts		—		—		2		—		—		—		—		—		—		2

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 2022	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	4,499	$	333	$	80,147	$	5,304	$	42,936	$	8,691	$	6,158	$	1,521	$	36,363	$	185,982
Special mention		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		104		—		—		299		—		—		80		483
Doubtful		—		—		—		—		—		—		—		—		5		5
Loss		—		—		—		—		—		—		—		—		—		—
	$	4,499	$	333	$	80,251	$	5,304	$	42,936	$	8,990	$	6,158	$	1,521	$	36,448	$	186,440
Nonaccrual	$	—	$	—	$	104	$	—	$	—	$	299	$	—	$	—	$	85	$	488
Troubled debt restructures	$	—	$	—	$	34	$	—	$	—	$	—	$	—	$	—	$	—	$	34
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	34	$	—	$	—	$	—	$	—	$	—	$	—	$	34
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		1