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Loans and Allowance for Loan Losses (Tables)

9 Months Ended

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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