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Note 4 - Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2020

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES

Loans at December 31, 2020 and 2019 consisted of the following:

(In thousands)	2020			2019

Real estate mortgage loans:
Residential	$	131,217		$	131,959
Land		17,328			19,185
Residential construction		39,160			35,554
Commercial real estate		135,114			121,563
Commercial real estate construction		4,988			20,086
Commercial business loans		82,274			45,307
Consumer loans:
Home equity and second mortgage loans		52,001			54,677
Automobile loans		43,770			46,443
Loans secured by deposits		1,083			1,372
Unsecured loans		2,766			3,653
Other consumer loans		16,117			13,700
Gross loans		525,818			493,499
Less undisbursed portion of loans in process		(19,179	)		(23,081	)

Principal loan balance		506,639			470,418

Deferred loan origination fees and costs, net		317			1,137
Allowance for loan losses		(6,625	)		(5,061	)

Loans, net	$	500,331		$	466,494

The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was passed by Congress on March 27, 2020. The CARES Act included a total allocation of $659 billion for PPP loans to be issued by financial institutions through the SBA. PPP loans are forgivable, in whole or in part, if the proceeds are used for eligible payroll costs and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and are 100% guaranteed by the SBA. PPP loans originated prior to June 5, 2020 have a term of two years, while PPP loans originated on or after June 5, 2020 have a term of five years. In accordance with the Paycheck Protection Flexibility Act of 2020, payments on PPP loans are deferred until the SBA remits the borrower’s loan forgiveness amount to the lender or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. The SBA paid the originating bank a processing fee ranging from 1% to 5%, based on the size of the loan. Through December 31, 2020, the Bank had originated $45.9 million in PPP loans and had received gross fees of $1.8 million from the SBA. At December 31, 2020, PPP loans totaling $37.3 million were included in commercial business loans and net deferred loan fees related to PPP loans was $842,000, which will be recognized over the life of the loans and as borrowers are granted forgiveness.

The Consolidated Appropriations Act of 2021 signed into law on December 27, 2020 included the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which renewed the PPP by allocating additional funds for both new first time PPP borrowers and “second round” PPP loans for qualifying existing PPP borrowers. The Bank is actively pursuing additional PPP loans under the program, which currently is extended through March 31, 2021.

At December 31, 2020 and 2019, the net unamortized premium on loans acquired from other financial institutions, excluding purchased credit impaired (“PCI”) loans, was $61,000 and $67,000, respectively.

At December 31, 2020 and 2019, residential mortgage loans secured by residential properties without private mortgage insurance or government guarantee and with loan-to-value ratios exceeding 90% amounted to approximately $1.6 million and $2.3 million, respectively.

The Bank has entered into loan transactions with certain directors, officers and their affiliates (i.e., related parties). In the opinion of management, such indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rate and collateral, as those prevailing at the time for comparable transactions with unrelated persons and does not involve more than normal risk of collectability or present other unfavorable features.

The following table represents the aggregate activity for related party loans during the years ended December 31, 2020 and 2019. Adjustments are made to reflect new directors and officers added during the year, as well as directors and officers that left the Company during the year.

(In thousands)	2020			2019

Beginning balance	$	9,520		$	7,867
Adjustments due to officer and director changes		(1,051	)		-
New loans		8,235			5,271
Payments		(3,417	)		(3,618	)

Ending balance	$	13,287		$	9,520

Off-balance-sheet commitments (including commitments to make loans, unused lines of credit and letters of credit) to related parties at December 31, 2020 and 2019 were $2.0 million and $7.5 million, respectively.

The following table provides the components of the Company’s recorded investment in loans at December 31, 2020 and 2019:

	Residential Real Estate		Land		Construction			Commercial Real Estate			Commercial Business			Home Equity and Second Mortgage		Other Consumer		Total
	(In thousands)
December 31, 2020:
Principal loan balance	$	131,217	$	17,328	$	24,969		$	135,114		$	82,274		$	52,001	$	63,736	$	506,639

Accrued interest receivable		513		116		61			435			378			176		244		1,923

Net deferred loan origination fees and costs		120		17		(12	)		(65	)		(843	)		1,100		-		317

Recorded investment in loans	$	131,850	$	17,461	$	25,018		$	135,484		$	81,809		$	53,277	$	63,980	$	508,879


December 31, 2019:
Principal loan balance	$	131,959	$	19,185	$	32,559		$	121,563		$	45,307		$	54,677	$	65,168	$	470,418

Accrued interest receivable		462		114		86			312			142			244		272		1,632

Net deferred loan origination fees and costs		118		15		(1	)		(62	)		-			1,067		-		1,137

Recorded investment in loans	$	132,539	$	19,314	$	32,644		$	121,813		$	45,449		$	55,988	$	65,440	$	473,187

An analysis of the allowance for loan losses and recorded investment in loans as of and for the year ended December 31, 2020 is as follows:

	Residential Real Estate			Land		Construction			Commercial Real Estate		Commercial Business			Home Equity and Second Mortgage		Other Consumer			Total
(In thousands)
*Allowance for Loan Losses:*

Beginning balance	$	867		$	163	$	350		$	1,623	$	595		$	515	$	948		$	5,061
Provisions		393			46		(58	)		735		280			91		314			1,801
Charge-offs		(72	)		-		-			-		(32	)		-		(407	)		(511	)
Recoveries		51			-		-			-		-			11		212			274

Ending balance	$	1,239		$	209	$	292		$	2,358	$	843		$	617	$	1,067		$	6,625

Ending allowance balance attributable to loans:

Individually evaluated for impairment	$	-		$	-	$	-		$	-	$	-		$	-	$	-		$	-
Collectively evaluated for impairment		1,208			209		292			2,358		843			617		1,067			6,594
Acquired with deteriorated credit quality		31			-		-			-		-			-		-			31

Ending balance	$	1,239		$	209	$	292		$	2,358	$	843		$	617	$	1,067		$	6,625

*Recorded Investment in Loans:*

Individually evaluated for impairment	$	1,728		$	97	$	-		$	779	$	211		$	353	$	-		$	3,168
Collectively evaluated for impairment		129,851			17,364		25,018			134,679		81,598			52,924		63,980			505,414
Acquired with deteriorated credit quality		271			-		-			26		-			-		-			297

Ending balance	$	131,850		$	17,461	$	25,018		$	135,484	$	81,809		$	53,277	$	63,980		$	508,879

An analysis of the allowance for loan losses and recorded investment in loans as of and for the year ended December 31, 2019 is as follows:

	Residential Real Estate			Land		Construction		Commercial Real Estate		Commercial Business		Home Equity and Second Mortgage			Other Consumer			Total
(In thousands)
*Allowance for Loan Losses:*

Beginning balance	$	693		$	162	$	224	$	1,401	$	459	$	443		$	683		$	4,065
Provisions		251			-		126		222		132		77			617			1,425
Charge-offs		(194	)		-		-		-		-		(24	)		(548	)		(766	)
Recoveries		117			1		-		-		4		19			196			337

Ending balance	$	867		$	163	$	350	$	1,623	$	595	$	515		$	948		$	5,061

Ending allowance balance attributable to loans:

Individually evaluated for impairment	$	16		$	-	$	-	$	-	$	-	$	-		$	-		$	16
Collectively evaluated for impairment		839			163		350		1,623		595		515			948			5,033
Acquired with deteriorated credit quality		12			-		-		-		-		-			-			12

Ending balance	$	867		$	163	$	350	$	1,623	$	595	$	515		$	948		$	5,061

*Recorded Investment in Loans:*

Individually evaluated for impairment	$	1,926		$	115	$	-	$	353	$	249	$	56		$	48		$	2,747
Collectively evaluated for impairment		130,328			19,199		32,644		121,421		45,200		55,932			65,392			470,116
Acquired with deteriorated credit quality		285			-		-		39		-		-			-			324

Ending balance	$	132,539		$	19,314	$	32,644	$	121,813	$	45,449	$	55,988		$	65,440		$	473,187

An analysis of the allowance for loan losses for the year ended December 31, 2018 is as follows:

	Residential Real Estate			Land		Construction			Commercial Real Estate			Commercial Business			Home Equity and Second Mortgage			Other Consumer			Total
(In thousands)
*Allowance for Loan Losses:*

Beginning balance	$	219		$	133	$	245		$	1,622		$	291		$	710		$	414		$	3,634
Provisions		723			29		(21	)		(296	)		218			(278	)		793			1,168
Charge-offs		(258	)		-		-			-			(51	)		(21	)		(697	)		(1,027	)
Recoveries		9			-		-			75			1			32			173			290

Ending balance	$	693		$	162	$	224		$	1,401		$	459		$	443		$	683		$	4,065

At December 31, 2020 and 2019, management applied qualitative factor adjustments to each portfolio segment as they determined that the historical loss experience was not indicative of the level of risk in the remaining balance of those portfolio segments. As part of their analysis of qualitative factors, management considers changes in underwriting standards, economic conditions, past due loan trends, collateral valuations, loan concentrations and other internal and external factors. During the year ended December 31, 2020, management adjusted the qualitative factors due to economic uncertainties related to the novel coronavirus ("COVID-19"). At December 31, 2020, there was still considerable uncertainty about how severely the COVID-19 pandemic has impacted the loan portfolio. As a result, management has increased the allowance qualitative factor adjustments for each portfolio segment while considering the potential length of the pandemic, continued elevated unemployment rates, the impact of further state and local restrictions, the impact of government stimulus activities and the timeline for economic recovery.

Management also adjusts the historical loss factors for loans classified as watch, special mention and substandard that are not individually evaluated for impairment. The adjustments consider the increased likelihood of loss on classified loans based on the Company’s separate historical experience for classified loans.

At December 31, 2020, the Company's allowance for loan losses totaled $6.6 million, of which $6.0 million related to qualitative factor adjustments. At December 31, 2019, the Company's allowance for loan losses totaled $5.1 million, of which $3.9 million related to qualitative factor adjustments. These changes were made to reflect management’s estimates of inherent losses in the loan portfolio at December 31, 2020 and 2019.

The following table summarizes the Company’s impaired loans as of and for the year ended December 31, 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended December 31, 2020.

			Unpaid				Average		Interest
	*Recorded*		*Principal*		*Related*		*Recorded*		*Income*
	*Investment*		*Balance*		*Allowance*		*Investment*		*Recognized*
	(In thousands)

Loans with no related allowance recorded:
Residential real estate	$	1,728	$	1,902	$	-	$	1,638	$	22
Land		97		97		-		101		1
Construction		-		-		-		-		-
Commercial real estate		779		784		-		836		36
Commercial business		211		210		-		249		9
Home equity and second mortgage		353		345		-		234		13
Other consumer		-		-		-		19		-

	$	3,168	$	3,338	$	-	$	3,077	$	81

Loans with an allowance recorded:
Residential real estate	$	-	$	-	$	-	$	117	$	-
Land		-		-		-		-		-
Construction		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Commercial business		-		-		-		76		-
Home equity and second mortgage		-		-		-		-		-
Other consumer		-		-		-		-		-

	$	-	$	-	$	-	$	193	$	-

Total:
Residential real estate	$	1,728	$	1,902	$	-	$	1,755	$	22
Land		97		97		-		101		1
Construction		-		-		-		-		-
Commercial real estate		779		784		-		836		36
Commercial business		211		210		-		325		9
Home equity and second mortgage		353		345		-		234		13
Other consumer		-		-		-		19		-

	$	3,168	$	3,338	$	-	$	3,270	$	81

The following table summarizes the Company’s impaired loans as of and for the year ended December 31, 2019. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended December 31, 2019.

			Unpaid				Average		Interest
	*Recorded*		*Principal*		*Related*		*Recorded*		*Income*
	*Investment*		*Balance*		*Allowance*		*Investment*		*Recognized*
	(In thousands)

Loans with no related allowance recorded:
Residential real estate	$	1,737	$	1,986	$	-	$	1,973	$	17
Land		115		117		-		147		-
Construction		-		-		-		209		-
Commercial real estate		353		352		-		446		33
Commercial business		249		257		-		330		11
Home equity and second mortgage		56		56		-		29		1
Other consumer		48		50		-		20		-

	$	2,558	$	2,818	$	-	$	3,154	$	62

Loans with an allowance recorded:
Residential real estate	$	189	$	211	$	16	$	87	$	-
Land		-		-		-		-		-
Construction		-		-		-		-		-
Commercial real estate		-		-		-		81		-
Commercial business		-		-		-		58		-
Home equity and second mortgage		-		-		-		13		-
Other consumer		-		-		-		-		-

	$	189	$	211	$	16	$	239	$	-

Total:
Residential real estate	$	1,926	$	2,197	$	16	$	2,060	$	17
Land		115		117		-		147		-
Construction		-		-		-		209		-
Commercial real estate		353		352		-		527		33
Commercial business		249		257		-		388		11
Home equity and second mortgage		56		56		-		42		1
Other consumer		48		50		-		20		-

	$	2,747	$	3,029	$	16	$	3,393	$	62

The following table summarizes the Company’s impaired loans for the year ended December 31, 2018. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended December 31, 2018.

	Average		Interest
	Recorded		Income
	Investment		Recognized
		(In thousands)

Loans with no related allowance recorded:
Residential real estate	$	2,335	$	23
Land		135		-
Construction		104		-
Commercial real estate		325		16
Commercial business		237		14
Home equity and second mortgage		57		1
Other consumer		5		1

	$	3,198	$	55

Loans with an allowance recorded:
Residential real estate	$	203	$	-
Land		-		-
Construction		-		-
Commercial real estate		42		-
Commercial business		38		-
Home equity and second mortgage		5		-
Other consumer		-		-

	$	288	$	-

Total:
Residential real estate	$	2,538	$	23
Land		135		-
Construction		104		-
Commercial real estate		367		16
Commercial business		275		14
Home equity and second mortgage		62		1
Other consumer		5		1

	$	3,486	$	55

Nonperforming loans consists of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at December 31, 2020 and 2019:

	December 31, 2020						December 31, 2019
	Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans		Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans
	(In thousands)

Residential real estate	$	1,154	$	-	$	1,154	$	1,544	$	13	$	1,557
Land		97		59		156		115		-		115
Construction		-		-		-		-		-		-
Commercial real estate		155		-		155		-		-		-
Commercial business		-		-		-		58		-		58
Home equity and second mortgage		-		-		-		-		-		-
Other consumer		-		-		-		48		-		48

Total	$	1,406	$	59	$	1,465	$	1,765	$	13	$	1,778

The following table presents the aging of the recorded investment in loans at December 31, 2020:

	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Purchased Credit Impaired Loans		Total Loans
			(In thousands)

Residential real estate	$	1,672	$	227	$	726	$	2,625	$	128,954	$	271	$	131,850
Land		130		65		156		351		17,110		-		17,461
Construction		-		-		-		-		25,018		-		25,018
Commercial real estate		155		-		-		155		135,303		26		135,484
Commercial business		-		-		-		-		81,809		-		81,809
Home equity and second mortgage		53		302		-		355		52,922		-		53,277
Other consumer		285		101		-		386		63,594		-		63,980

Total	$	2,295	$	695	$	882	$	3,872	$	504,710	$	297	$	508,879

The following table presents the aging of the recorded investment in loans at December 31, 2019:

	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Purchased Credit Impaired Loans		Total Loans
			(In thousands)

Residential real estate	$	2,572	$	824	$	1,010	$	4,406	$	127,848	$	285	$	132,539
Land		185		101		80		366		18,948		-		19,314
Construction		-		-		-		-		32,644		-		32,644
Commercial real estate		-		146		-		146		121,628		39		121,813
Commercial business		61		-		58		119		45,330		-		45,449
Home equity and second mortgage		395		256		-		651		55,337		-		55,988
Other consumer		504		66		-		570		64,870		-		65,440

Total	$	3,717	$	1,393	$	1,148	$	6,258	$	466,605	$	324	$	473,187

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, public information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful/Nonaccrual: Loans classified as doubtful/nonaccrual have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss: Loans classified as loss are considered uncollectible and of such little value that their continuance on the Company’s books as an asset is not warranted.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

The following table presents the recorded investment in loans by risk category as of the date indicated:

	Residential Real Estate		Land		Construction		Commercial Real Estate		Commercial Business		Home Equity and Second Mortgage		Other Consumer		Total
(In thousands)
December 31, 2020:
Pass	$	130,054	$	16,925	$	25,018	$	131,822	$	81,452	$	52,869	$	63,919	$	502,059
Special mention		-		315		-		2,289		284		-		10		2,898
Substandard		642		124		-		1,218		73		408		51		2,516
Doubtful/Nonaccrual		1,154		97		-		155		-		-		-		1,406
Loss		-		-		-		-		-		-		-		-

Total	$	131,850	$	17,461	$	25,018	$	135,484	$	81,809	$	53,277	$	63,980	$	508,879

December 31, 2019:
Pass	$	129,613	$	18,805	$	32,394	$	119,469	$	44,879	$	55,569	$	65,320	$	466,049
Special mention		46		327		250		1,136		378		-		72		2,209
Substandard		1,336		67		-		1,208		134		419		-		3,164
Doubtful/Nonaccrual		1,544		115		-		-		58		-		48		1,765
Loss		-		-		-		-		-		-		-		-

Total	$	132,539	$	19,314	$	32,644	$	121,813	$	45,449	$	55,988	$	65,440	$	473,187

Troubled Debt Restructurings

The following table summarizes the Company’s TDRs by accrual status as of December 31, 2020 and 2019:

	December 31, 2020								December 31, 2019
	Accruing		Nonaccrual		Total		Related Allowance for Loan Losses		Accruing		Nonaccrual		Total		Related Allowance for Loan Losses
	(In thousands)

Residential real estate	$	556	$	-	$	556	$	-	$	367	$	66	$	433	$	-
Commercial real estate		621		-		621		-		553		-		553		-
Commercial business		210		-		210		-		191		-		191		-
Home equity and second mortgage		345		-		345		-		55		-		55		-

Total	$	1,732	$	-	$	1,732	$	-	$	1,166	$	66	$	1,232	$	-

At December 31, 2020 and 2019, there were no commitments to lend additional funds to debtors whose loan terms have been modified in a TDR.

The Company restructured three residential real estate loans, two commercial business loans, one commercial real estate loan and one home equity loan during the year ended December 31, 2020, with pre-modification and post-modification balances of $358,000, $43,000, $250,000 and $294,000, respectively. The Company restructured two residential real estate loans, one commercial real estate loan and one home equity loan during the year ended December 31, 2019, with pre-modification and post-modification balances of $225,000, $154,000 and $56,000, respectively. The Company restructured two commercial business loans, one commercial real estate loan and one residential real estate loan during the year ended December 31, 2018, with pre-modification and post-modification balances of $234,000, $94,000 and $241,000, respectively. For the TDRs restructured during 2020, 2019 and 2018, the terms of modification included the deferral of contractual principal payments and the renewal/extension of matured loans where the debtor was unable to access funds elsewhere at a market interest rate for debt with similar risk characteristics. There were no principal charge-offs recorded as a result of TDRs during the years ended December 31, 2020, 2019 and 2018.

The Company had no payment defaults (defined as the loan becoming more than 90 days past due, being moved to nonaccrual status, or the collateral being foreclosed upon) for TDRs modified within the previous 12 months during the years ended December 31, 2020, 2019 and 2018. In the event that a TDR subsequently defaults, the Company evaluates the restructuring for possible impairment. As a result, the related allowance for loan losses may be increased or charge-offs may be taken to reduce the carrying amount of the loan. The Company did not recognize any provisions for loan losses or net charge-offs as a result of defaulted TDRs for the years ended December 31, 2020, 2019 and 2018.

On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. The guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the FASB staff that the federal banking agencies concluded that short-term modifications (e.g., six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not TDRs. The CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. The Consolidated Appropriations Act of 2021 further extended the relief from TDR accounting for qualified modifications to the earlier of January 1, 2022, or 60 days after the national emergency concerning COVID-19 terminates. The Bank has applied this guidance related to payment deferrals and other COVID-19 related loan modifications made through December 31, 2020. As of December 31, 2020, the Bank had approved payment extensions of primarily one to three months on $68.1 million of balances in the loan portfolio, primarily related to commercial real estate lending relationships. Of that total, $65.3 million remained outstanding and $65.1 million had resumed payments at December 31, 2020.

Purchased Credit Impaired (“PCI”) Loans

Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan and lease losses. Such loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit score, loan type and date of origination. In determining the estimated fair value of purchased loans or pools, management considers a number of factors including the remaining life, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, and net present value of cash flows expected to be received, among others. Purchased loans are accounted for in accordance with guidance for certain loans acquired in a transfer (FASB ASC 310-30), when the loans have evidence of credit deterioration since origination and it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The difference between the expected cash flows and the fair value at acquisition is recorded as interest income over the remaining life of the loan or pool of loans and is referred to as the accretable yield. Subsequent decreases to the expected cash flows will generally result in a provision for loan and lease losses. Subsequent increases in expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which is recognized as future interest income.

The following table presents the carrying amount of PCI loans accounted for under FASB ASC 310-30 at December 31, 2020 and 2019:

(In thousands)	2020		2019

Residential real estate	$	271	$	285
Commercial real estate		26		39
Carrying amount		297		324
Allowance for loan losses		31		12

Carrying amount, net of allowance	$	266	$	312

The outstanding balance of PCI loans accounted for under FASB ASC 310-30, including contractual principal, interest, fees and penalties was $390,000 and $466,000 at December 31, 2020 and 2019, respectively.

The allowance for loan losses related to PCI loans was $31,000 at December 31, 2020. The allowance for loan losses related to PCI loans was $12,000 at December 31, 2019. Provisions for loan losses related to PCI loans were $19,000 for the year ended December 31, 2020. Provisions for loan losses related to PCI loans were $12,000 for the year ended December 31, 2019. There was a $2,000 reduction of the allowance for loan losses related PCI loans for the year ended December 31, 2018.

Accretable yield, or income expected to be collected, is as follows for the years ended December 31, 2020, 2019 and 2018:

(In thousands)	2020			2019			2018

Beginning balance	$	403		$	423		$	470
New loans acquired		-			-			-
Accretion to income		(42	)		(46	)		(54	)
Disposals and other adjustments		(4	)		-			(35	)
Reclassification from nonaccretable difference		(41	)		26			42

Ending balance	$	316		$	403		$	423