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Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Summary of Major Classifications of Loans

Major classifications of loans, by collateral code, at December 31, 2020 and 2019 are summarized as follows: (in thousands)

		December 31, 2020				December 31, 2019
Commercial (secured by real estate)		$	178,571				54,488
Commercial and industrial			155,554				28,613
Paycheck Protection Program loans			101,749				—
Construction, land and acquisition & development			23,571				20,502
Residential mortgage 1-4 family			91,777				116,843
Consumer installment			47,393				31,644
			598,615				252,090
Less allowance for loan losses			(6,361	)			(4,134	)
		$	592,254			$	247,956

Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2020 and 2019: (in thousands)

December 31, 2020		Commercial (Secured by Real Estate)				Commercial and Industrial				Paycheck Protection Program (1)				Construction, Land and Acquisition & Development				Residential Mortgage				Consumer Installment				Unallocated				Total
Allowance for loan losses:
Beginning balance		$	1,661				1,478				—				153				369				466				7				4,134
Provision			1,207				(194	)			—				71				627				252				37				2,000
Charge-offs			(30	)			—				—				—				(126	)			(29	)			—				(185	)
Recoveries			246				36				—				—				100				30				—				412
Ending balance		$	3,084				1,320				—				224				970				719				44				6,361
Ending allowance attributable to loans:
Individually evaluated for impairment		$	2				35				—				—				14				—				—				51
Collectively evaluated for impairment			3,082				1,285				—				224				956				719				44				6,310
Total ending allowance		$	3,084			$	1,320			$	—			$	224			$	970			$	719			$	44			$	6,361
Loans:
Individually evaluated for impairment		$	2,584				1,085				—				—				3,597				8				—				7,274
Collectively evaluated for impairment			175,987				154,469				101,749				23,571				88,180				47,385				—				591,341
Total loans		$	178,571				155,554				101,749				23,571				91,777				47,393				—				598,615
December 31, 2019
Allowance for loan losses:
Beginning balance		$	1,619				1,520				—				108				641				127				7				4,022
Provision			(88	)			53				—				45				(385	)			375				—				—
Charge-offs			—				(163	)			—				—				(254	)			(36	)			—				(453	)
Recoveries			130				68				—				—				367				—				—				565
Ending balance		$	1,661				1,478				—				153				369				466				7				4,134
Ending allowance attributable to loans:
Individually evaluated for impairment		$	1				—				—				—				5				—				—				6
Collectively evaluated for impairment			1,660				1,478				—				153				364				466				7				4,128
Total ending allowance		$	1,661			$	1,478			$	—			$	153			$	369			$	466			$	7			$	4,134
Loans:
Individually evaluated for impairment		$	1,539				395				—				—				4,161				—				—				6,095
Collectively evaluated for impairment			52,949				28,218				—				20,502				112,682				31,644				—				245,995
Total loans		$	54,488				28,613				—				20,502				116,843				31,644				—				252,090

(1) Includes PPP loans that are fully guaranteed by the SBA; thus, no allowance for loan losses has been allocated to these loans.

Summary of Impaired Loans

Impaired loans At December 31, 2020 and 2019 were as follows: (in thousands)

December 31, 2020		Recorded Investment				Unpaid Principal Balance				Allocated Related Allowance				Average Recorded Investment				Interest Income Recognized
With no related allowance recorded:
Commercial (secured by real estate)		$	1,136				2,232				—				1,138				42
Commercial and industrial			395				395				—				395				—
Paycheck Protection Program			—				—				—				—				—
Construction, land and acquisition & development			—				—				—				—				—
Residential mortgage			1,986				1,987				—				2,041				9
Consumer installment			8				8				—				9				1
			3,525				4,622				—				3,583				52
With an allowance recorded:
Commercial (secured by real estate)			1,448				1,449				2				-				91
Commercial and industrial			690				690				35				1,481				6
Construction, land and acquisition & development			—				—				—				727				—
Residential mortgage			1,611				1,613				14				-				73
Consumer installment			—				—				—				1,634				—
			3,749				3,752				51				3,842				170
Total impaired loans		$	7,274				8,374				51				7,425				222
December 31, 2019
With no related allowance recorded:
Commercial (secured by real estate)		$	26				26				—				40				9
Commercial and industrial			395				527				—				463				29
Paycheck Protection Program			—				—				—				—				—
Construction, land and acquisition & development			—				—				—				—				—
Residential mortgage			3,749				3,878				—				3,912				153
Consumer installment			—				-				—				—				—
			4,170				4,431				—				4,415				190
With an allowance recorded:
Commercial (secured by real estate)			1,513				1,513				1				1,539				94
Commercial and industrial			—				—				—				—				—
Construction, land and acquisition & development			—				—				—				—				—
Residential mortgage			412				412				5				405				—
Consumer installment			—				—				—				—				24
			1,925				1,925				6				1,944				118
Total impaired loans		$	6,095				6,356				6				6,359				307

Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans

The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, As of December 31, 2020 and 2019 by class of loans: (in thousands)

December 31, 2020		30 -59 Days Past Due				60- 89 Days Past Due				90 Days or Greater Past Due				Total Past Due				Current				Total				Nonaccrual
Commercial (secured by real estate)			3,386				—				1,136				4,522				174,049				178,571				1,157
Commercial and industrial			29				—				1,085				1,114				154,440				155,554				1,085
Paycheck Protection Program			—				—				—				—				101,749				101,749				—
Construction, land and acquisition &    development			1,392				—				—				1,392				22,179				23,571				—
Residential mortgage			4,308				1,094				1,444				6,846				84,931				91,777				2,587
Consumer installment			78				—				73				151				47,242				47,393				73
Total		$	9,193				1,094				3,738				14,025				584,590				598,615				4,902
December 31, 2019
Commercial (secured by real estate)		$	114				24				10				148				54,340				54,488				246
Commercial and industrial			1,270				30				395				1,695				26,918				28,613				395
Paycheck Protection Program			—				—				—				—				—				—				—
Construction, land and acquisition &    development			—				—				—				—				20,502				20,502				—
Residential mortgage			3,087				2,040				643				5,770				111,073				116,843				1,912
Consumer installment			58				34				—				92				31,552				31,644				14
Total		$	4,529				2,128				1,048				7,705				244,385				252,090				2,567

Summary of Troubled Debt Restructurings

The table below presents information on troubled debt restructurings including the number of loan contracts restructured and the pre- and post-modification recorded investment that have occurred during the years ended December 31, 2020 and 2019.  Also included in the table are the number of contracts and the recorded investment for those trouble debt restructurings that have subsequently defaulted during the years ended December 31, 2020 and 2019: (in thousands)

						Pre- Modification Outstanding				Post- Modification Outstanding				Troubled Debt Restructurings that have Subsequently Defaulted
December 31, 2020		Number of Contracts				Recorded Investment				Recorded Investment				Number of Contracts				Recorded Investment
Residential mortgage			1			$	31				31				—				—
December 31, 2019
Residential mortgage			1			$	250				250				—				—

Summary of Risk Category of Loans by Class of Loans

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.  As of December 31, 2020 and 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands)

December 31, 2020		Pass				Special Mention				Substandard				Doubtful/ Loss				Total
Commercial (secured by real estate)		$	176,629				785				1,157				—				178,571
Commercial and industrial			154,469				—				1,085				—				155,554
Paycheck Protection Program			101,749				—				—				—				101,749
Construction, land and acquisition & development			23,571				—				—				—				23,571
Residential mortgage			87,738				62				3,977				—				91,777
Consumer installment			47,332				—				61				—				47,393
Total		$	591,488				847				6,280				—				598,615

December 31, 2019		Pass				Special Mention				Substandard				Doubtful/ Loss				Total
Commercial (secured by real estate)		$	54,454				—				34				—				54,488
Commercial and industrial			28,204				—				409				—				28,613
Paycheck Protection Program			—				—				—				—				—
Construction, land and acquisition & development			20,502				—				—				—				20,502
Residential mortgage			110,034				229				6,580				—				116,843
Consumer installment			31,626				—				18				—				31,644
Total		$	244,820				229				7,041				—				252,090

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