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Loans and Allowance for Loan Losses (Tables) | 9 Months Ended
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Sep. 30, 2021
Receivables [Abstract] |
Summary of Major Classifications of Loans | Major classifications of loans, by collateral code, at September 30, 2021 and December 31, 2020 are summarized as follows: (in thousands)
|  | September 30, 2021 |  |  | December 31, 2020 |
Commercial (secured by real estate) |  | $ | 207,018 |  |  | $ | 178,571 |
Commercial and industrial |  |  | 170,123 |  |  |  | 155,554 |
Paycheck Protection Program loans |  |  | 31,715 |  |  |  | 101,749 |
Construction, land and acquisition & development |  |  | 21,713 |  |  |  | 23,571 |
Residential mortgage 1-4 family |  |  | 73,532 |  |  |  | 91,777 |
Consumer installment |  |  | 67,069 |  |  |  | 47,393 |
Total |  |  | 571,170 |  |  |  | 598,615 |
Less allowance for loan losses |  |  | (7,631 | ) |  |  | (6,361 | )
Total loans, net |  | $ | 563,539 |  |  | $ | 592,254 |
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 and for the nine months ended September 30, 2021 and 2020: (in thousands)
September 30, 2021 |  | 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 |  | $ | 3,084 |  |  | $ | 1,320 |  |  | $ | — |  |  | $ | 224 |  |  | $ | 970 |  |  | $ | 719 |  |  | $ | 44 |  |  | $ | 6,361 |
Provision |  |  | 316 |  |  |  | 1,210 |  |  |  | — |  |  |  | (42 | ) |  |  | (555 | ) |  |  | 69 |  |  |  | (23 | ) |  |  | 975 |
Charge-offs |  |  | — |  |  |  | (54 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (31 | ) |  |  | — |  |  |  | (85 | )
Recoveries |  |  | 265 |  |  |  | 37 |  |  |  | — |  |  |  | — |  |  |  | 73 |  |  |  | 5 |  |  |  | — |  |  |  | 380 |
Ending balance |  | $ | 3,665 |  |  | $ | 2,513 |  |  | $ | — |  |  | $ | 182 |  |  | $ | 488 |  |  | $ | 762 |  |  | $ | 21 |  |  | $ | 7,631 |
Ending allowance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | — |  |  | $ | 45 |  |  | $ | — |  |  | $ | — |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | 53 |
Collectively evaluated for impairment |  |  | 3,665 |  |  |  | 2,468 |  |  |  | — |  |  |  | 182 |  |  |  | 480 |  |  |  | 762 |  |  |  | 21 |  |  |  | 7,578 |
Total ending allowance |  | $ | 3,665 |  |  |  | 2,513 |  |  | $ | — |  |  |  | 182 |  |  |  | 488 |  |  |  | 762 |  |  |  | 21 |  |  |  | 7,631 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,553 |  |  | $ | 933 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,221 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 7,709 |
Collectively evaluated for impairment |  |  | 203,465 |  |  |  | 169,190 |  |  |  | 31,715 |  |  |  | 21,713 |  |  |  | 70,311 |  |  |  | 67,067 |  |  |  | — |  |  |  | 563,461 |
Total loans |  | $ | 207,018 |  |  | $ | 170,123 |  |  | $ | 31,715 |  |  | $ | 21,713 |  |  | $ | 73,532 |  |  | $ | 67,069 |  |  | $ | — |  |  | $ | 571,170 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
(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 September 30, 2021 and December 31, 2020 were as follows: (in thousands)
September 30, 2021 |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Allocated Related Allowance |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial (secured by real estate) |  | $ | 3,553 |  |  | $ | 3,599 |  |  | $ | — |  |  | $ | 3,549 |  |  | $ | 61 |
Commercial and industrial |  |  | 315 |  |  |  | 315 |  |  |  | — |  |  |  | 315 |  |  |  | — |
Paycheck Protection Program |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction, land and acquisition & development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 1,934 |  |  |  | 2,951 |  |  |  | — |  |  |  | 1,952 |  |  |  | — |
Consumer installment |  |  | 2 |  |  |  | 2 |  |  |  | — |  |  |  | 2 |  |  |  | — |
|  |  | 5,804 |  |  |  | 6,867 |  |  |  | — |  |  |  | 5,818 |  |  |  | 60 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial (secured by real estate) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial and industrial |  |  | 618 |  |  |  | 618 |  |  |  | 45 |  |  |  | 618 |  |  |  | — |
Construction, land and acquisition & development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage |  |  | 1,287 |  |  |  | 2,217 |  |  |  | 8 |  |  |  | 1,295 |  |  |  | 66 |
Consumer installment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 1,905 |  |  |  | 2,835 |  |  |  | 53 |  |  |  | 1,913 |  |  |  | 66 |
Total impaired loans |  | $ | 7,709 |  |  | $ | 9,702 |  |  | $ | 53 |  |  | $ | 7,731 |  |  | $ | 126 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
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 September 30, 2021 and December 31, 2020 by class of loans: (in thousands)
September 30, 2021 |  | 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) |  | $ | — |  |  | $ | — |  |  | $ | 470 |  |  | $ | 470 |  |  | $ | 206,548 |  |  | $ | 207,018 |  |  | $ | 2,181 |
Commercial and industrial |  |  | — |  |  |  | 317 |  |  |  | 959 |  |  |  | 1,276 |  |  |  | 168,847 |  |  |  | 170,123 |  |  |  | 1,001 |
Paycheck Protection Program |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,715 |  |  |  | 31,715 |  |  |  | — |
Construction, land and acquisition & development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 21,713 |  |  |  | 21,713 |  |  |  | — |
Residential mortgage |  |  | 349 |  |  |  | 1,114 |  |  |  | 214 |  |  |  | 1,677 |  |  |  | 71,855 |  |  |  | 73,532 |  |  |  | 2,985 |
Consumer installment |  |  | 340 |  |  |  | 14 |  |  |  | 4 |  |  |  | 358 |  |  |  | 66,711 |  |  |  | 67,069 |  |  |  | 49 |
Total |  | $ | 689 |  |  | $ | 1,445 |  |  | $ | 1,647 |  |  | $ | 3,781 |  |  | $ | 567,389 |  |  | $ | 571,170 |  |  | $ | 6,216 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
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 September 30, 2021 and December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands)
September 30, 2021 |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful/ Loss |  |  | Total |
Commercial (secured by real estate) |  | $ | 202,171 |  |  | $ | 1,161 |  |  | $ | 3,686 |  |  | $ | — |  |  | $ | 207,018 |
Commercial and industrial |  |  | 168,805 |  |  |  | 317 |  |  |  | 1,001 |  |  |  | — |  |  |  | 170,123 |
Paycheck Protection Program |  |  | 31,715 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,715 |
Construction, land and acquisition & development |  |  | 21,713 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 21,713 |
Residential mortgage |  |  | 69,025 |  |  |  | — |  |  |  | 4,507 |  |  |  | — |  |  |  | 73,532 |
Consumer installment |  |  | 67,049 |  |  |  | — |  |  |  | 20 |  |  |  | — |  |  |  | 67,069 |
Total |  | $ | 560,478 |  |  | $ | 1,478 |  |  | $ | 9,214 |  |  | $ | — |  |  | $ | 571,170 |
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 |

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