LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2024

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Schedule of loans receivable by loan portfolio segment and class

	June 30,			December 31,
	2024			2023
(dollars in thousands)	Amount		%	Amount		%
Loans Secured by Real Estate
Construction and land	$	6,272	3	$	4,636	3
Farmland		320	—		325	—
Single-family residential		102,739	51		86,887	50
Multi-family		5,095	3		5,165	3
Commercial		42,866	21		39,217	22
Total loans secured by real estate		157,292			136,230
Commercial and Industrial
Commercial and industrial		15,748	8		10,850	6
SBA guaranty		5,816	3		5,924	3
Total commercial and industrial loans		21,564			16,774
Consumer Loans
Consumer		2,782	1		2,039	1
Automobile		19,862	10		21,264	12
Total consumer loans		22,644			23,303
Loans, net of deferred fees and costs		201,500	100		176,307	100
Less: Allowance for credit losses		(2,625)			(2,157)
Loans, net	$	198,875		$	174,150

Schedule of transactions in the allowance for credit losses

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
June 30, 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)		—		(12)		(16)		(327)
Recoveries		—		—		—		—		—		—		—		54		47		101
(Release) provision for credit losses		(6)		(1)		258		135		132		234		10		(29)		(39)		694
Balance, end of quarter	$	25	$	17	$	1,548	$	231	$	322	$	239	$	31	$	43	$	169	$	2,625
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	21	$	—	$	—	$	—	$	—	$	—	$	—	$	21
Related loan balance		—		—		36		—		—		132		—		—		—		168
Collectively evaluated for impairment:
Balance in allowance	$	25	$	17	$	1,527	$	231	$	322	$	239	$	31	$	43	$	169	$	2,604
Related loan balance		6,272		320		102,703		5,095		42,866		15,616		5,816		2,782		19,862		201,332

	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 allowances for credit losses

	June 30,			June 30,
(dollars in thousands)	2024			2023
Average loans	$	181,282		$	183,240
Net charge offs to average loans (annualized)		0.25	%		0.03	%

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

	Gross Charge-offs
June 30, 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		—		—		12		—		—		—		—		12
Automobile		—		—		—		—		—		16		—		16
Total gross charge-offs this period	$	—	$	—	$	12	$	299	$	—	$	16	$	—	$	327
	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 reserve for unfunded commitments

	Six Months Ended
	Ended June 30,
(dollars in thousands)	2024		2023
Beginning balance	$	473	$	477
Reduction of unfunded reserve		(88)		(4)
Provisions charged to operations		186		23
Ending balance	$	571	$	496

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

At June 30, 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	$	6,272	$	—	$	—	$	—	$	6,272
Farmland		320		—		—		—		320
Single-family residential		102,580		53		—		106		102,739
Multi-family		5,095		—		—		—		5,095
Commercial		42,734		—		—		132		42,866
Total loans secured by real estate		157,001		53		—		238		157,292
Commercial and Industrial
Commercial and industrial		15,748		—		—		—		15,748
SBA guaranty		5,344		472		—		—		5,816
Total commercial and industrial loans		21,092		472		—		—		21,564
Consumer Loans
Consumer		2,782		—		—		—		2,782
Automobile		19,509		274		—		79		19,862
Total consumer loans		22,291		274		—		79		22,644
	$	200,384	$	799	$	—	$	317	$	201,500

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

June 30, 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		7		28		2		21		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		7		28		2		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	$	7	$	28	$	2	$	21	$	48
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		78		78		3		n/a		91
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		78		78		3		—		91
Commercial and Industrial
Commercial and industrial		132		132		5		n/a		139
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		132		132		5		—		139
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		117		117		3		n/a		149
Total consumer loans		117		117		3		n/a		149
Total impaired loans with no specific reserve	$	327	$	327	$	11	$	—	$	379

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 allowance for loan loss and the unearned income on loans

	June 30,			December 31,
(dollars in thousands)	2024			2023
Restructured loans to borrowers with financial difficulty	$	28		$	30
Non-accrual and 90+ days past due and still accruing loans to average loans		0.17	%		0.29	%
Allowance for credit losses to nonaccrual & 90+ days past due and still accruing loans		827.1	%		409.3	%

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		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
December 31, 2023	$	145	$	—	$	299	$	—	$	—	$	83	$	527
Transfers into nonaccrual		—		140		—		—		—		18		158
Loans paid down/payoffs		(39)		(8)		—		—		—		(19)		(66)
Loans returned to accrual status		—		—		—		—		—		(1)		(1)
Loans charged off		—		—		(299)		—		—		(2)		(301)
June 30, 2024	$	106	$	132	$	—	$	—	$	—	$	79	$	317

Schedule of company's credit quality indicators by loan portfolio segment

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
June 30, 2024	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	6,272	$	320	$	102,633	$	5,095	$	42,866	$	15,616	$	5,816	$	2,782	$	19,745	$	201,145
Special mention		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		106		—		—		132		—		—		117		355
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	6,272	$	320	$	102,739	$	5,095	$	42,866	$	15,748	$	5,816	$	2,782	$	19,862	$	201,500
Nonaccrual	$	—	$	—	$	106	$	—	$	132	$	—	$	—	$	—	$	79	$	317
Restructured loans to borrowers with financial difficulty	$	—	$	—	$	28	$	—	$	—	$	—	$	—	$	—	$	—	$	28
Number restructured loans to borrowers with financial difficulty		—		—		1		—		—		—		—		—		—		1
Non-performing restructured loans to borrowers with financial difficulty	$	—	$	—	$	28	$	—	$	—	$	—	$	—	$	—	$	—	$	28
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