Loans Held for Investment

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Loans Held for Investment

Note 3 – Loans Held for Investment

The composition of net loans held for investment by class as of December 31, 2023 and 2022 is as follows:

	2023			2022
	(dollars in thousands)
Commercial
Commercial	$	102,178		$	85,917
SBA Paycheck Protection Program (PPP)		188			545
Real estate - commercial		213,397			183,550
Other real estate construction loans		40,872			37,077
Other loans		6,214			6,666
Noncommercial
Real estate 1-4 family construction		12,481			6,613
Real estate - residential		143,697			108,669
Home equity		60,599			58,186
Consumer loans		11,581			9,762
		591,207			496,985
Less:
Allowance for credit losses		(5,561	)		(2,290	)
Deferred loan fees, net		864			904
Loans held for investment, net	$	586,510		$	495,599

Although the Bank’s loan portfolio is diversified, there is a concentration of mortgage real estate loans, primarily 1-to-4 family residential and home equity loans, which represents 34.6% of total loans. Additionally, there is a concentration in commercial loans secured by real estate that represents 36.1% of total loans. The commercial loan real estate portfolio is diversified and comprised of different types of real estate including, but not limited to, commercial buildings, commercial land development, multi-family housing, hotels, agriculture, and shopping center locations. There is not a concentration of a particular type of credit in this group of commercial loans. The Company’s loan policies are written to address loan-to-value ratios and collateralization methods with respect to each lending category. Consideration is given to the economic and credit risk of lending areas and customers associated with each category.

The carrying value of foreclosed properties held as other real estate was $141,000 at December 31, 2023 compared to $0 at December 31, 2022. The Company had no residential real estate in process of foreclosure at December 31, 2023 and December 31, 2022.