XML 27 R13.htm IDEA: XBRL DOCUMENT

Note 4 - Allowance for Loan Losses

12 Months Ended

Dec. 31, 2022

Allowance for Credit Losses [Text Block]

Note 4. Allowance for Loan Losses

The following tables present, as of December 31, 2022 and 2021, the total allowance for loan losses, the allowance by impairment methodology, and loans by impairment methodology (in thousands).

	December 31, 2022
	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, 2021	$	345	$	1,077		$	3,230	$	718		$	340		$	5,710
Charge-offs		—		(6	)		—		(32	)		(491	)		(529	)
Recoveries		10		19			15		145			226			415
Provision for (recovery of) loan losses		191		18			364		1,043			234			1,850
Ending Balance, December 31, 2022	$	546	$	1,108		$	3,609	$	1,874		$	309		$	7,446
Ending Balance:
Individually evaluated for impairment		—		—			—		888			—			888
Collectively evaluated for impairment		546		1,108			3,609		986			309			6,558
Loans:
Ending Balance		51,840		331,421			418,456		111,225			7,581			920,523
Individually evaluated for impairment		1,045		530			13		1,085			—			2,673
Collectively evaluated for impairment		50,795		330,891			418,443		110,140			7,581			917,850

	December 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		—		(15	)		(992	)		(6	)		(434	)		(1,447	)
Recoveries		6		65			3			7			241			322
Provision for (recovery of) loan losses		33		5			(737	)		(67	)		116			(650	)
Ending Balance, December 31, 2021	$	345	$	1,077		$	3,230		$	718		$	340		$	5,710
Ending Balance:
Individually evaluated for impairment		—		—			—			55			—			55
Collectively evaluated for impairment		345		1,077			3,230			663			340			5,655
Loans:
Ending Balance		55,721		291,990			364,921			99,805			12,681			825,118
Individually evaluated for impairment		—		765			30			1,509			—			2,304
Collectively evaluated for impairment		55,721		291,225			364,891			98,296			12,681			822,814

Impaired loans and the related allowance at December 31, 2022 and 2021, were as follows (in thousands):

	December 31, 2022
	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	$	2,412	$	1,045	$	—	$	1,045	$	—	$	30	$	75
Secured by 1-4 family residential		680		530		—		530		—		580		11
Other real estate loans		26		13		—		13		—		22		—
Commercial and industrial		1,084		—		1,085		1,085		888		650		40
Total	$	4,202	$	1,588	$	1,085	$	2,673	$	888	$	1,282	$	126

	December 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	$	—	$	—	$	—	$	—	$	—	$	91	$	—
Secured by 1-4 family		889		765		—		765		—		429		9
Other real estate loans		40		30		—		30		—		2,384		—
Commercial and industrial		1,673		—		1,509		1,509		55		1,613		—
Total	$	2,602	$	795	$	1,509	$	2,304	$	55	$	4,517	$	9

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 December 31, 2022, loans classified as TDRs and included in impaired loans in the disclosure above totaled $101 thousand. At December 31, 2022, none of the loans classified as TDRs were performing under the restructured terms and all were considered non-performing assets. There were $1.6 million in TDRs at December 31, 2021, 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 no loans modified as TDRs during the year ended December 31, 2022. There was no specific reserve component of the allowance for loan losses relating to the TDRs described above at December 31, 2022. The TDRs described above increased the specific reserve component of the allowance for loan losses by $55 thousand at December 31, 2022.

During the fourth quarter of 2020, the Company modified terms of certain loans for customers that continued to be negatively impacted by the pandemic. The loan modifications lowered borrower loan payments by allowing interest only payments for periods ranging between 6 and 24 months. All loans that were modified resumed original contractual loan payments during the year ended December 31, 2022.

For the years ended December 31, 2022 and 2021, there were no TDRs that subsequently defaulted within twelve months of the loan modification. Management defines default as over 90 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.

There were no non-accrual loans excluded from impaired loan disclosure at December 31, 2022 and December 31, 2021. Had non-accrual loans performed in accordance with their original contract terms, the Company would have recognized additional interest income in the amount of $177 thousand and $155 thousand during the years ended December 31, 2022 and 2021, respectively.