LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Allowance for Credit Losses

Schedule of major categories of loans

	March 31,			December 31,
	2024			2023
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	6,106	4	$	4,636	3
Farmland		322	—		325	—
Single-family residential		86,068	48		86,887	50
Multi-family		5,130	3		5,165	3
Commercial		39,084	22		39,217	22
Total loans secured by real estate		136,710			136,230
Commercial and Industrial
Commercial and industrial		13,282	8		10,850	6
SBA guaranty		5,872	3		5,924	3
Total commercial and industrial loans		19,154			16,774
Consumer Loans
Consumer		2,399	1		2,039	1
Automobile		19,687	11		21,264	12
Total consumer loans		22,086			23,303
Loans, net of deferred fees and costs		177,950	100		176,307	100
Less: Allowance for credit losses		(2,035)			(2,157)
Loans, net	$	175,915		$	174,150

Schedule of total allowance by loan segment

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
March 31, 2024	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	$	31	$	18	$	1,290	$	96	$	190	$	304	$	21	$	30	$	177	$	2,157
Charge-offs		—		—		—		—		(299)		—		—		(13)		(2)		(314)
Recoveries		—		—		—		—		—		—		—		—		23		23
(Release) provision for credit losses		6		(1)		15		(1)		305		(145)		—		20		(30)		169
Balance, end of quarter	$	37	$	17	$	1,305	$	95	$	196	$	159	$	21	$	37	$	168	$	2,035
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	21	$	—	$	—	$	—	$	—	$	—	$	—	$	21
Related loan balance		—		—		35		—		—		141		—		—		—		176
Collectively evaluated for impairment:
Balance in allowance	$	37	$	17	$	1,284	$	95	$	196	$	159	$	21	$	37	$	168	$	2,014
Related loan balance		6,106		322		86,033		5,130		39,084		13,141		5,872		2,399		19,687		177,774

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 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		—		—		—		—		—		—		—		(79)		(124)		(203)
Recoveries		—		—		—		—		—		—		—		1		101		102
(Release) provision for credit losses		(13)		(2)		60		(7)		(31)		130		(1)		85		(125)		96
Balance, end of the year	$	31	$	18	$	1,290	$	96	$	190	$	304	$	21	$	30	$	177	$	2,157
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	21	$	—	$	—	$	179	$	—	$	—	$	—	$	200
Related loan balance		—		—		30		—		—		299		—		—		—		329
Collectively evaluated for impairment:
Balance in allowance	$	31	$	18	$	1,269	$	96	$	190	$	125	$	21	$	30	$	177	$	1,957
Related loan balance		4,636		325		86,857		5,165		39,217		10,551		5,924		2,039		21,264		175,978

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 for each period shown:

	Gross Charge-offs
March 31, 2024		Term Loans by Origination Year
(dollars in thousands)														Revolving
	2024		2023		2022		2021		2020		Prior		Loans		Total
Commercial and Industrial Loans
Commercial and industrial	$	—	$	—	$	—	$	299	$	—	$	—	$	—	$	299
Consumer Loans
Consumer		—		—		13		—		—		—		—		13
Automobile		—		—		—		—		—		2		—		2
Total gross charge-offs this period	$	—	$	—	$	13	$	299	$	—	$	2	$	—	$	314
	Gross Charge-offs
December 31, 2023		Term Loans by Origination Year
(dollars in thousands)														Revolving
	2023		2022		2021		2020		2019		Prior		Loans		Total
Consumer Loans
Consumer	$	—	$	—	$	—	$	—	$	—	$	79	$	—	$	79
Automobile		—		—		47		43		27		7		—		124
Total gross charge-offs this period	$	—	$	—	$	47	$	43	$	27	$	86	$	—	$	203

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, 2022	$	104	$	—	$	299	$	—	$	—	$	85	$	488
Transfers into nonaccrual		187		—		—		—		—		3		190
Loans paid down/payoffs		(191)		—		—		—		—		(11)		(202)
Loans returned to accrual status		—		—		—		—		—		—		—
Loans charged off		—		—		(3)		—		—		(5)		(8)
March 31, 2023	$	100	$	—	$	296	$	—	$	—	$	72	$	468
December 31, 2023	$	145	$	—	$	299	$	—	$	—	$	83	$	527
Transfers into nonaccrual		—		141		—		—		—		17		158
Loans paid down/payoffs		(6)		—		—		—		—		(7)		(13)
Loans returned to accrual status		—		—		—		—		—		—		—
Loans charged off		—		—		(299)		—		—		(2)		(301)
March 31, 2024	$	139	$	141	$	—	$	—	$	—	$	91	$	371

Schedule of risk ratings of loans by categories of loans

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
March 31, 2024	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	6,106	$	322	$	85,929	$	5,130	$	39,084	$	13,142	$	5,872	$	2,399	$	19,551	$	177,534
Special mention		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		139		—		—		141		—		—		136		416
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	6,106	$	322	$	86,068	$	5,130	$	39,084	$	13,282	$	5,872	$	2,399	$	19,687	$	177,950
Nonaccrual	$	—	$	—	$	139	$	—	$	141	$	—	$	—	$	—	$	91	$	371
Restructured loans to borrowers with financial difficulty	$	—	$	—	$	29	$	—	$	—	$	—	$	—	$	—	$	—	$	29
Number restructured loans to borrowers with financial difficulty		—		—		1		—		—		—		—		—		—		1
Non-performing restructured loans to borrowers with financial difficulty	$	—	$	—	$	29	$	—	$	—	$	—	$	—	$	—	$	—	$	29
Number of non-performing restructured loan accounts		—		—		1		—		—		—		—		—		—		1

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 2023	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	4,636	$	325	$	86,742	$	5,165	$	39,217	$	10,551	$	5,924	$	2,039	$	21,110	$	175,709
Special mention		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		145		—		—		299		—		—		154		598
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	4,636	$	325	$	86,887	$	5,165	$	39,217	$	10,850	$	5,924	$	2,039	$	21,264	$	176,307
Nonaccrual	$	—	$	—	$	145	$	—	$	—	$	299	$	—	$	—	$	83	$	527
Restructured loans to borrowers with financial difficulty	$	—	$	—	$	30	$	—	$	—	$	—	$	—	$	—	$	—	$	30
Number restructured loans to borrowers with financial difficulty		—		—		1		—		—		—		—		—		—		1
Non-performing restructured loans to borrowers with financial difficulty	$	—	$	—	$	30	$	—	$	—	$	—	$	—	$	—	$	—	$	30
Number of non-performing restructured loan accounts		—		—		1		—		—		—		—		—		—		1

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

At March 31, 2024					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	$	6,106	$	—	$	—	$	—	$	6,106
Farmland		322		—		—		—		322
Single-family residential		85,290		639		—		139		86,068
Multi-family		5,130		—		—		—		5,130
Commercial		38,943		—		—		141		39,084
Total loans secured by real estate		135,791		639		—		280		136,710
Commercial and Industrial
Commercial and industrial		13,282		—		—		—		13,282
SBA guaranty		5,872		—		—		—		5,872
Total commercial and industrial loans		19,154		—		—		—		19,154
Consumer Loans
Consumer		2,399		—		—		—		2,399
Automobile		19,308		288		—		91		19,687
Total consumer loans		21,707		288		—		91		22,086
	$	176,652	$	927	$	—	$	371	$	177,950

At December 31, 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	$	4,636	$	—	$	—	$	—	$	4,636
Farmland		325		—		—		—		325
Single-family residential		86,233		509		—		145		86,887
Multi-family		5,165		—		—		—		5,165
Commercial		39,217		—		—		—		39,217
Total loans secured by real estate		135,576		509		—		145		136,230
Commercial and Industrial
Commercial and industrial		10,551		—		—		299		10,850
SBA guaranty		5,924		—		—		—		5,924
Total commercial and industrial loans		16,475		—		—		299		16,774
Consumer Loans
Consumer		1,981		58		—		—		2,039
Automobile		20,794		387		—		83		21,264
Total consumer loans		22,775		445		—		83		23,303
	$	174,826	$	954	$	—	$	527	$	176,307

Summary of the recorded investment amount and related allowance for losses of the Bank's impaired loans

Below is a summary of the recorded investment amount and related allowance for losses of the Bank’s impaired loans at March 31, 2024 and December 31, 2023.

March 31, 2024			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		8		29		1		21		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		8		29		1		21		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	$	8	$	29	$	1	$	21	$	48
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		110		110		1		n/a		123
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		110		110		1		—		123
Commercial and Industrial
Commercial and industrial		141		141		1		n/a		141
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		141		141		1		—		141
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		136		136		2		n/a		103
Total consumer loans		136		136		2		n/a		103
Total impaired loans with no specific reserve	$	387	$	387	$	4	$	—	$	367

December 31, 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		30		4		21		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		9		30		4		21		48
Commercial and Industrial
Commercial and industrial		120		299		—		179		499
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		120		299		—		179		499
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	129	$	329	$	4	$	200	$	547
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		115		115		5		n/a		130
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		115		115		5		—		130
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		154		154		6		n/a		104
Total consumer loans		154		154		6		n/a		104
Total impaired loans with no specific reserve	$	269	$	269	$	11	$	—	$	234

Schedule of allowances for credit losses

	March 31,			March 31,
(dollars in thousands)	2024			2023
Average loans	$	175,914		$	184,787
Net charge offs to average loans (annualized)		0.66	%		(0.09)	%

Schedule of reserve for unfunded commitments

	Three Months Ended
	Ended March 31,
(dollars in thousands)	2024		2023
Beginning balance	$	473	$	477
Reduction of unfunded reserve		(15)		—
Provisions charged to operations		39		5
Ending balance	$	497	$	482

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

	March 31,			December 31,
(dollars in thousands)	2024			2023
Restructured loans to borrowers with financial difficulty	$	29		$	30
Non-accrual and 90+ days past due and still accruing loans to average loans		0.21	%		0.25	%
Allowance for credit losses to nonaccrual & 90+ days past due and still accruing loans		549.1	%		409.3	%