LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2023

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Schedule of major categories of loans

	September 30,			December 31,
	2023			2022
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	4,145	2	$	4,499	2
Farmland		327	—		333	—
Single-family residential		82,998	48		80,251	43
Multi-family		5,201	3		5,304	3
Commercial		41,361	24		42,936	23
Total loans secured by real estate		134,032			133,323
Commercial and Industrial
Commercial and industrial		10,032	6		8,990	5
SBA guaranty		5,970	3		6,158	3
Total commercial and industrial loans		16,002			15,148
Consumer Loans
Consumer		1,257	1		1,521	1
Automobile		23,505	13		36,448	20
Total consumer loans		24,762			37,969
Loans, net of deferred fees and costs		174,796	100		186,440	100
Less: Allowance for credit losses		(2,094)			(2,162)
Loans, net	$	172,702		$	184,278

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
September 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		—		—		—		—		—		—		—		—		(136)		(136)
Recoveries		—		—		3		—		—		—		—		0		72		75
(Release) provision for credit losses		(9)		(2)		4		(6)		(18)		87		—		1		(64)		(7)
Balance, end of quarter	$	35	$	18	$	1,237	$	97	$	203	$	261	$	22	$	24	$	197	$	2,094
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	22	$	—	$	149	$	—	$	—	$	—	$	—	$	171
Related loan balance		—		—		31		—		300		—		—		—		—		331
Collectively evaluated for impairment:
Balance in allowance	$	35	$	18	$	1,215	$	97	$	53	$	261	$	22	$	24	$	197	$	1,923
Related loan balance		4,145		327		82,967		5,201		41,061		10,032		5,970		1,257		23,505		174,465

	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

	September 30,			September 30,
(dollars in thousands)	2023			2022
Average loans	$	181,234		$	197,199
Net charge offs to average loans (annualized)		0.05	%		0.00	%

Schedule of reserve for unfunded commitments

	Nine Months Ended
	Ended September 30,
(dollars in thousands)	2023		2022
Beginning balance	$	477	$	371
Reduction of unfunded reserve		(52)		(76)
Provisions charged to operations		23		174
Ending balance	$	448	$	469

Schedule of current period gross charge-offs by the year of origination

The following table provides current period gross charge-offs by the year of origination as of September 30, 2023:

	Gross Charge-offs
September 30, 2023		Term Loans by Origination Year
(dollars in thousands)														Revolving
	2023		2022		2021		2020		2019		Prior		Loans		Total
Consumer Loans
Consumer	$	—	$	—	$	—	$	—	$	—	$	79	$	—	$	79
Automobile						30		19				8				57
Total gross charge-offs this period	$	—	$	—	$	30	$	19	$	—	$	87	$	—	$	136

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

At September 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	$	4,145	$	—	$	—	$	—	$	4,145
Farmland		327		—		—		—		327
Single-family residential		82,528		321		—		149		82,998
Multi-family		5,201		—		—		—		5,201
Commercial		40,764		597		—		—		41,361
Total loans secured by real estate		132,965		918		—		149		134,032
Commercial and Industrial
Commercial and industrial		9,733		—		—		299		10,032
SBA guaranty		5,970		—		—		—		5,970
Total commercial and industrial loans		15,703		—		—		299		16,002
Consumer Loans
Consumer		1,256		1		—		—		1,257
Automobile		23,058		314		—		133		23,505
Total consumer loans		24,314		315		—		133		24,762
	$	172,982	$	1,233	$	—	$	581	$	174,796

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

September 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		9		31		3		22		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		9		31		3		22		48
Commercial and Industrial
Commercial and industrial		151		300		—		149		499
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		151		300		—		149		499
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	160	$	331	$	3	$	171	$	547
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		118		118		5		n/a		131
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		118		118		5		—		131
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		135		135		6		n/a		162
Total consumer loans		135		135		6		n/a		162
Total impaired loans with no specific reserve	$	253	$	253	$	11	$	—	$	293

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

	September 30,			December 31,
(dollars in thousands)	2023			2022
Troubled debt restructured loans	$	8		$	34
Non-accrual and 90+ days past due and still accruing loans to average loans		0.32	%		0.25	%
Allowance for credit losses to nonaccrual & 90+ days past due and still accruing loans		359.4	%		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		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
December 31, 2022	$	104	$	—	$	299	$	—	$	—	$	85	$	488
Transfers into nonaccrual		307		—		—		—		—		145		452
Loans paid down/payoffs		(262)		—		—		—		—		(24)		(286)
Loans returned to accrual status		—		—		—		—		—		(16)		(16)
Loans charged off		—		—		—		—		—		(57)		(57)
September 30, 2023	$	149	$	—	$	299	$	—	$	—	$	133	$	581

Schedule of risk ratings of loans by categories of loans

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
September 30, 2023	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	4,145	$	327	$	82,849	$	5,201	$	41,361	$	9,733	$	5,970	$	1,257	$	23,369	$	174,212
Special mention		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		149		—		—		299		—		—		136		584
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	4,145	$	327	$	82,998	$	5,201	$	41,361	$	10,032	$	5,970	$	1,257	$	23,505	$	174,796
Nonaccrual	$	—	$	—	$	149	$	—	$	—	$	299	$	—	$	—	$	133	$	581
Troubled debt restructures	$	—	$	—	$	8	$	—	$	—	$	—	$	—	$	—	$	—	$	8
Number of TDRs accounts		—		—		1		—		—		—		—		—		—		1
Non-performing TDRs	$	—	$	—	$	8	$	—	$	—	$	—	$	—	$	—	$	—	$	8
Number of non-performing TDR accounts		—		—		1		—		—		—		—		—		—		1

	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	$	185,952
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