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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 9 Months Ended
Sep. 30, 2022
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]  
Portfolio Loans
Loans are comprised of the following:

 
September 30,
2022
    
December 31,
2021
  
             
Residential real estate
  
$
272,271
    
$
274,425
  
Commercial real estate:
                
Owner-occupied
    
70,623
      
71,979
  
Nonowner-occupied
    
173,116
      
176,100
  
   Construction
    
41,264
      
33,718
  
Commercial and industrial
    
153,417
      
141,525
  
Consumer:
                
Automobile
    
54,409
      
48,206
  
Home equity
    
26,755
      
22,375
  
Other
    
64,058
      
62,863
  
     
855,913
      
831,191
  
Less:  Allowance for loan losses
    
(4,811
)
    
(6,483
)
                 
Loans, net
  
$
851,102
    
$
824,708
  
Activity in Allowance for Loan Losses by Portfolio Segment
The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2022 and 2021:

September 30, 2022
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for loan losses:
                              
Beginning balance
  
$
614
    
$
1,846
    
$
1,548
    
$
1,206
    
$
5,214
  
Provision for loan losses
    
(189
)
    
42
      
(308
)
    
77
      
(378
)
Loans charged off
    
(57
)
    
(20
)
    
—
      
(262
)
    
(339
)
Recoveries
    
55
      
29
      
36
      
194
      
314
  
Total ending allowance balance
  
$
423
    
$
1,897
    
$
1,276
    
$
1,215
    
$
4,811
  

September 30, 2021
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for loan losses:
                              
Beginning balance
  
$
1,088
    
$
2,532
    
$
1,746
    
$
1,433
    
$
6,799
  
Provision for loan losses
    
(34
)
    
10
      
(263
)
    
194
      
(93
)
Loans charged-off
    
(49
)
    
(63
)
    
(25
)
    
(280
)
    
(417
)
Recoveries
    
40
      
115
      
113
      
107
      
375
  
Total ending allowance balance
  
$
1,045
    
$
2,594
    
$
1,571
    
$
1,454
    
$
6,664
  

The following table presents the activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2022 and 2021:

September 30, 2022
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for loan losses:
                              
Beginning balance
  
$
980
    
$
2,548
    
$
1,571
    
$
1,384
    
$
6,483
  
Provision for loan losses
    
(545
)
    
(683
)
    
271
      
266
      
(691
)
Loans charged-off
    
(99
)
    
(36
)
    
(618
)
    
(964
)
    
(1,717
)
Recoveries
    
87
      
68
      
52
      
529
      
736
  
Total ending allowance balance
  
$
423
    
$
1,897
    
$
1,276
    
$
1,215
    
$
4,811
  

September 30, 2021
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for loan losses:
                              
Beginning balance
  
$
1,480
    
$
2,431
    
$
1,776
    
$
1,473
    
$
7,160
  
Provision for loan losses
    
(443
)
    
121
      
(260
)
    
464
      
(118
)
Loans charged-off
    
(75
)
    
(115
)
    
(96
)
    
(879
)
    
(1,165
)
Recoveries
    
83
      
157
      
151
      
396
      
787
  
Total ending allowance balance
  
$
1,045
    
$
2,594
    
$
1,571
    
$
1,454
    
$
6,664
  
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following table presents the balance in the allowance for loan losses and the recorded investment of loans by portfolio segment and based on impairment method as of September 30, 2022 and December 31, 2021:

September 30, 2022
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for loan losses:
                              
Ending allowance balance attributable to loans:
                              
Individually evaluated for impairment
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
Collectively evaluated for impairment
    
423
      
1,897
      
1,276
      
1,215
      
4,811
  
Total ending allowance balance
  
$
423
    
$
1,897
    
$
1,276
    
$
1,215
    
$
4,811
  
                                         
Loans:
                                        
Loans individually evaluated for impairment
  
$
—
    
$
2,020
    
$
—
    
$
28
    
$
2,048
  
Loans collectively evaluated for impairment
    
272,271
      
282,983
      
153,417
      
145,194
      
853,865
  
Total ending loans balance
  
$
272,271
    
$
285,003
    
$
153,417
    
$
145,222
    
$
855,913
  

December 31, 2021
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for loan losses:
                              
Ending allowance balance attributable to loans:
                              
Individually evaluated for impairment
  
$
—
    
$
—
    
$
10
    
$
—
    
$
10
  
Collectively evaluated for impairment
    
980
      
2,548
      
1,561
      
1,384
      
6,473
  
Total ending allowance balance
  
$
980
    
$
2,548
    
$
1,571
    
$
1,384
    
$
6,483
  
                                         
Loans:
                                        
Loans individually evaluated for impairment
  
$
—
    
$
5,411
    
$
4,531
    
$
81
    
$
10,023
  
Loans collectively evaluated for impairment
    
274,425
      
276,386
      
136,994
      
133,363
      
821,168
  
          Total ending loans balance
  
$
274,425
    
$
281,797
    
$
141,525
    
$
133,444
    
$
831,191
  
Loans Individually Evaluated for Impairment by Class of Loans
The following tables present information related to loans individually evaluated for impairment by class of loans as of September 30, 2022 and December 31, 2021:

September 30, 2022
  
Unpaid
Principal Balance
    
Recorded
Investment
    
Allowance for Loan
Losses Allocated
  
With an allowance recorded:
  
$
—
    
$
—
    
$
—
  
With no related allowance recorded:
                        
Commercial real estate:
                        
Owner-occupied
    
1,703
      
1,640
      
—
  
Nonowner-occupied
    
380
      
380
      
—
  
   Consumer:
                        
        Home equity
    
28
      
28
      
—
  
Total
  
$
2,111
    
$
2,048
    
$
—
  

December 31, 2021
  
Unpaid
Principal Balance
    
Recorded
Investment
    
Allowance for Loan
Losses Allocated
  
With an allowance recorded:
                  
   Commercial and industrial
  
$
1,993
    
$
1,993
    
$
10
  
With no related allowance recorded:
                        
Commercial real estate:
                        
Owner-occupied
    
5,052
      
5,027
      
—
  
Nonowner-occupied
    
384
      
384
      
—
  
Commercial and industrial
    
2,538
      
2,538
      
—
  
Consumer:
                        
Home equity
    
31
      
31
      
—
  
       Other
    
50
      
50
      
—
  
Total
  
$
10,048
    
$
10,023
    
$
10
  

The following tables present information related to loans individually evaluated for impairment by class of loans for the three and nine months ended September 30, 2022 and 2021:

 
Three months ended September 30, 2022
    
Nine months ended September 30, 2022
  
   
Average
Impaired Loans
    
Interest Income
Recognized
    
Cash Basis
Interest Recognized
    
Average
Impaired Loans
    
Interest Income
Recognized
    
Cash Basis
Interest Recognized
  
With an allowance recorded:
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
With no related allowance recorded:
                                                
Commercial real estate:
                                                
Owner-occupied
    
1,650
      
18
      
18
      
1,676
      
66
      
66
  
Nonowner-occupied
    
381
      
8
      
8
      
382
      
22
      
22
  
   Consumer:
                                                
        Home equity
    
14
      
1
      
1
      
22
      
1
      
1
  
Total
  
$
2,045
    
$
27
    
$
27
    
$
2,080
    
$
89
    
$
89
  

 
Three months ended September 30, 2021
    
Nine months ended September 30, 2021
  
   
Average
Impaired Loans
    
Interest Income
Recognized
    
Cash Basis
Interest Recognized
    
Average
Impaired Loans
    
Interest Income
Recognized
    
Cash Basis
Interest Recognized
  
With an allowance recorded:
                                    
   Consumer:
                                    
        Other
  
$
49
    
$
1
    
$
1
    
$
49
    
$
2
    
$
2
  
With no related allowance recorded:
                                                
Commercial real estate:
                                                
Owner-occupied
    
5,128
      
74
      
74
      
5,183
      
239
      
239
  
Nonowner-occupied
    
386
      
7
      
7
      
388
      
21
      
21
  
Commercial and industrial
    
3,174
      
111
      
111
      
3,586
      
200
      
200
  
Consumer:
                                                
       Home equity
    
32
      
1
      
1
      
33
      
2
      
2
  
Total
  
$
8,769
    
$
194
    
$
194
    
$
9,239
    
$
464
    
$
464
  
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans
The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of September 30, 2022 and December 31, 2021:

September 30, 2022
  
Loans Past Due
90 Days And
Still Accruing
    
Nonaccrual
  
             
Residential real estate
  
$
203
    
$
1,531
  
Commercial real estate:
                
Owner-occupied
    
—
      
981
  
Nonowner-occupied
    
—
      
72
  
Construction
    
—
      
15
  
Commercial and industrial
    
148
      
149
  
Consumer:
                
Automobile
    
65
      
105
  
Home equity
    
—
      
127
  
Other
    
470
      
75
  
Total
  
$
886
    
$
3,055
  

December 31, 2021
  
Loans Past Due
90 Days And
Still Accruing
    
Nonaccrual
  
             
Residential real estate
  
$
10
    
$
2,683
  
Commercial real estate:
                
Owner-occupied
    
—
      
1,055
  
Nonowner-occupied
    
—
      
—
  
Construction
    
—
      
146
  
Commercial and industrial
    
65
      
150
  
Consumer:
                
Automobile
    
55
      
147
  
Home equity
    
—
      
148
  
Other
    
160
      
17
  
Total
  
$
290
    
$
4,346
  
Aging of Recorded Investment in Past Due Loans by Class of Loans
The following table presents the aging of the recorded investment of past due loans by class of loans as of September 30, 2022 and December 31, 2021:

September 30, 2022
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 Days
Or More
Past Due
    
Total
Past Due
    
Loans Not
Past Due
    
Total
  
                                     
Residential real estate
  
$
1,514
    
$
907
    
$
624
    
$
3,045
    
$
269,226
    
$
272,271
  
Commercial real estate:
                                                
Owner-occupied
    
188
      
—
      
981
      
1,169
      
69,454
      
70,623
  
Nonowner-occupied
    
9
      
6
      
—
      
15
      
173,101
      
173,116
  
Construction
    
34
      
—
      
—
      
34
      
41,230
      
41,264
  
Commercial and industrial
    
96
      
—
      
297
      
393
      
153,024
      
153,417
  
Consumer:
                                                
Automobile
    
760
      
156
      
157
      
1,073
      
53,336
      
54,409
  
Home equity
    
35
      
—
      
127
      
162
      
26,593
      
26,755
  
Other
    
384
      
368
      
514
      
1,266
      
62,792
      
64,058
  
Total
  
$
3,020
    
$
1,437
    
$
2,700
    
$
7,157
    
$
848,756
    
$
855,913
  

December 31, 2021
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 Days
Or More
Past Due
    
Total
Past Due
    
Loans Not
Past Due
    
Total
  
                                     
Residential real estate
  
$
2,208
    
$
1,218
    
$
921
    
$
4,347
    
$
270,078
    
$
274,425
  
Commercial real estate:
                                                
   Owner-occupied
    
895
      
—
      
153
      
1,048
      
70,931
      
71,979
  
   Nonowner-occupied
    
100
      
—
      
—
      
100
      
176,000
      
176,100
  
   Construction
    
36
      
53
      
33
      
122
      
33,596
      
33,718
  
Commercial and industrial
    
517
      
60
      
215
      
792
      
140,733
      
141,525
  
Consumer:
                                                
   Automobile
    
656
      
148
      
194
      
998
      
47,208
      
48,206
  
   Home equity
    
35
      
165
      
47
      
247
      
22,128
      
22,375
  
   Other
    
401
      
133
      
177
      
711
      
62,152
      
62,863
  
Total
  
$
4,848
    
$
1,777
    
$
1,740
    
$
8,365
    
$
822,826
    
$
831,191
  
Troubled Debt Restructuring Loan Modifications
The following table presents the types of TDR loan modifications by class of loans as of September 30, 2022 and December 31, 2021:

September 30, 2022
  
TDRs
Performing to Modified Terms
    
TDRs Not
Performing to Modified Terms
    
Total
TDRs
  
Commercial real estate:
                  
   Owner-occupied
                  
Reduction of principal and interest payments
  
$
419
    
$
—
    
$
419
  
Credit extension at lower stated rate than market rate
    
364
      
—
      
364
  
Nonowner-occupied
                        
Credit extension at lower stated rate than market rate
    
380
      
—
      
380
  
                         
Total TDRs
  
$
1,163
    
$
—
    
$
1,163
  

December 31, 2021
  
TDRs
Performing to Modified Terms
    
TDRs Not
Performing to Modified Terms
    
Total
TDRs
  
Commercial real estate:
                  
Owner-occupied
                  
Reduction of principal and interest payments
  
$
1,455
    
$
—
    
$
1,455
  
Maturity extension at lower stated rate than market rate
    
268
      
—
      
268
  
Credit extension at lower stated rate than market rate
    
375
      
—
      
375
  
Nonowner-occupied
                        
Credit extension at lower stated rate than market rate
    
385
      
—
      
385
  
 Commercial and industrial
                        
Interest only payments
    
2,301
      
—
      
2,301
  
Total TDRs
  
$
4,784
    
$
—
    
$
4,784
  
Financing Receivable Credit Quality Indicators As of September 30, 2022 and December 31, 2021, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

September 30, 2022
 
  
Pass
    
Criticized
    
Classified
    
Total
  
Commercial real estate:
                        
Owner-occupied
  
$
67,110
    
$
2,532
    
$
981
    
$
70,623
  
Nonowner-occupied
    
172,926
      
—
      
190
      
173,116
  
Construction
    
41,202
      
—
      
62
      
41,264
  
Commercial and industrial
    
151,371
      
276
      
1,770
      
153,417
  
Total
  
$
432,609
    
$
2,808
    
$
3,003
    
$
438,420
  

December 31, 2021
 
  
Pass
    
Criticized
    
Classified
    
Total
  
Commercial real estate:
                        
Owner-occupied
  
$
66,999
    
$
618
    
$
4,362
    
$
71,979
  
Nonowner-occupied
    
175,901
      
—
      
199
      
176,100
  
Construction
    
33,685
      
—
      
33
      
33,718
  
Commercial and industrial
    
134,983
      
1,862
      
4,680
      
141,525
  
Total
  
$
411,568
    
$
2,480
    
$
9,274
    
$
423,322
  
Recorded Investment of Residential and Consumer Loans
For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of September 30, 2022 and December 31, 2021:

September 30, 2022
  
Consumer
    
Residential
        
   
Automobile
    
Home Equity
    
Other
    
Real Estate
    
Total
  
                               
Performing
  
$
54,239
    
$
26,628
    
$
63,513
    
$
270,537
    
$
414,917
  
Nonperforming
    
170
      
127
      
545
      
1,734
      
2,576
  
Total
  
$
54,409
    
$
26,755
    
$
64,058
    
$
272,271
    
$
417,493
  

December 31, 2021
  
Consumer
    
Residential
        
   
Automobile
    
Home Equity
    
Other
    
Real Estate
    
Total
  
                               
Performing
  
$
48,004
    
$
22,227
    
$
62,686
    
$
271,732
    
$
404,649
  
Nonperforming
    
202
      
148
      
177
      
2,693
      
3,220
  
Total
  
$
48,206
    
$
22,375
    
$
62,863
    
$
274,425
    
$
407,869