Note

Allowance for Loan Losses

The following tables present, as of

March 31, 2021

December 31, 2020

and

March 31, 2020

, the total allowance for loan losses, the allowance by impairment methodology, and loans by impairment methodology (in thousands):

	March 31, 2021
	Construction and Land Development			Secured by 1-4 Family Residential		Other Real Estate		Commercial and Industrial		Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2020	$	306		$	1,022	$	4,956	$	784	$	417		$	7,485
Charge-offs		—			—		—		—		(66	)		(66	)
Recoveries		—			2		1		2		62			67
Provision for (recovery of) loan losses		(16	)		7		39		46		(76	)		—
Ending Balance, March 31, 2021	$	290		$	1,031	$	4,996	$	832	$	337		$	7,486
Ending Balance:
Individually evaluated for impairment		—			—		2,065		123		—			2,188
Collectively evaluated for impairment		290			1,031		2,931		709		337			5,298
Loans:
Ending Balance	$	25,720		$	236,870	$	248,864	$	117,545	$	9,203		$	638,202
Individually evaluated for impairment		269			430		4,567		1,548		—			6,814
Collectively evaluated for impairment		25,451			236,440		244,297		115,997		9,203			631,388

	December 31, 2020
	Construction and Land Development			Secured by 1-4 Family Residential		Other Real Estate		Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2019	$	464		$	776	$	2,296	$	562		$	836		$	4,934
Charge-offs		—			—		—		(69	)		(715	)		(784	)
Recoveries		2			8		2		18			305			335
Provision for (recovery of) loan losses		(160	)		238		2,658		273			(9	)		3,000
Ending Balance, December 31, 2020	$	306		$	1,022	$	4,956	$	784		$	417		$	7,485
Ending Balance:
Individually evaluated for impairment		—			—		2,065		158			—			2,223
Collectively evaluated for impairment		306			1,022		2,891		626			417			5,262
Loans:
Ending Balance	$	27,328		$	235,814	$	246,883	$	109,838		$	10,051		$	629,914
Individually evaluated for impairment		276			449		4,441		1,548			—			6,714
Collectively evaluated for impairment		27,052			235,365		242,442		108,290			10,051			623,200

	March 31, 2020
	Construction and Land Development			Secured by 1-4 Family Residential		Other Real Estate		Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2019	$	464		$	776	$	2,296	$	562		$	836		$	4,934
Charge-offs		—			—		—		(68	)		(260	)		(328	)
Recoveries		—			2		1		2			73			78
Provision for (recovery of) loan losses		(3	)		298		347		215			43			900
Ending Balance, March 31, 2020	$	461		$	1,076	$	2,644	$	711		$	692		$	5,584
Ending Balance:
Individually evaluated for impairment		—			11		—		—			—			11
Collectively evaluated for impairment		461			1,065		2,644		711			692			5,573
Loans:
Ending Balance	$	40,279		$	230,980	$	241,374	$	55,508		$	13,726		$	581,867
Individually evaluated for impairment		400			667		455		—			—			1,522
Collectively evaluated for impairment		39,879			230,313		240,919		55,508			13,726			580,345

Impaired loans and the related allowance at

March 31, 2021

December 31, 2020

and

March 31, 2020

, were as follows (in thousands):

	March 31, 2021
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	323	$	269	$	—	$	269	$	—	$	273	$	—
Secured by 1-4 family		556		430		—		430		—		440		—
Other real estate loans		4,619		297		4,270		4,567		2,065		4,443		1
Commercial and industrial		1,639		—		1,548		1,548		123		1,548		—
Total	$	7,137	$	996	$	5,818	$	6,814	$	2,188	$	6,704	$	1

	December 31, 2020
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	325	$	276	$	—	$	276	$	—	$	344	$	—
Secured by 1-4 family		568		449		—		449		—		517		1
Other real estate loans		4,492		171		4,270		4,441		2,065		2,623		109
Commercial and industrial		1,582		—		1,548		1,548		158		393		77
Total	$	6,967	$	896	$	5,818	$	6,714	$	2,223	$	3,877	$	187

	March 31, 2020
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	439	$	400	$	—	$	400	$	—	$	367	$	—
Secured by 1-4 family		770		444		223		667		11		613		1
Other real estate loans		505		455		—		455		—		458		—
Total	$	1,714	$	1,299	$	223	$	1,522	$	11	$	1,438	$	1

The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans. Only loan classes with balances are included in the tables above.

As of

March 31, 2021

, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled

$6.0

million. At

March 31, 2021

none

of the loans classified as TDRs were performing under the restructured terms and all were considered non-performing assets. There were

$6.0

million in TDRs at

December 31, 2020

none

of which were performing under the restructured terms. Modified terms under TDRs

may

include rate reductions, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. There were

loans modified under TDRs during the

three

months ended

March 31, 2021

and

2020

In response to the COVID-

pandemic, the Company created and implemented a loan payment deferral program for individual and business customers beginning in the

first

quarter of

2020,

which provided them the opportunity to defer monthly payments for

days. As of

March 31, 2021

, there were

loans remaining in the program. These loans were

not

considered TDRs because they were modified in accordance with relief provisions of the CARES Act and recent interagency regulatory guidance.

During the

fourth

quarter of

2020,

the Company modified terms of certain loans for customers that continued to be negatively impacted by the COVID-

pandemic. The loan modifications lowered borrower loan payments by allowing interest only payments for periods ranging between

and

months. As of

March 31, 2021

, loans that were modified totaled

$14.3

million. These loans were

not

considered TDRs because they were modified in accordance with relief provisions of the CARES Act.

For the

three

months ended

March 31, 2021

and

2020

, there were

TDRs that subsequently defaulted within

twelve

months of the loan modification. Management defines default as over

ninety

days past due or the foreclosure and repossession of the collateral or charge-off of the loan during the

twelve

month period subsequent to the modification.