Loans, Allowance For Credit Losses And OREO (Tables)

9 Months Ended

Sep. 30, 2023

Loans, Allowance For Credit Losses And OREO [Abstract]


	As of
	September 30, 2023
Commercial	$ 65,827
Commercial Real Estate:
Commercial Mortgages-Owner Occupied	128,646
Commercial Mortgages-Non-Owner Occupied	177,073
Commercial Construction/Land	23,745
Consumer
Consumer Open-End	52,023
Consumer Closed-End	25,908
Residential:
Residential Mortgages	103,273
Residential Consumer Construction/Land	30,410

Total loans	$ 606,905

Less allowance for credit losses	7,320

Net loans	$ 599,585

	As of
	December 31, 2022
Commercial	$ 95,885
Commercial Real Estate:
Commercial Mortgages-Owner Occupied	135,189
Commercial Mortgages-Non-Owner Occupied	206,701
Commercial Construction	12,135
Consumer
Consumer Unsecured	2,828
Consumer Secured	95,131
Residential:
Residential Mortgages	43,049
Residential Consumer Construction	20,707

Total loans	$ 611,625

Less allowance for credit losses	6,259

Net loans	$ 605,366

(1)Includes net deferred costs of $982 and $1,114 as of September 30, 2023 and December 31, 2022, respectively.

Amortized Cost Basis of Collateral Dependent Loans


Collateral Dependent Loans	September 30, 2023
(dollars in thousands)	Business/Other Assets	Real Estate
Commercial	$ 394	$ -
Commercial Real Estate	-	3,736
Consumer	-	307
Residential	-	1,114
Total	$ 394	$ 5,157

Impaired Loans



		Impaired Loans
		(dollars in thousands)
		As of and For the Year Ended December 31, 2022
			Unpaid		Average	Interest
		Recorded	Principal	Related	Recorded	Income
2022		Investment (1)	Balance	Allowance	Investment	Recognized
With No Related Allowance Recorded:
	Commercial	$ -	$ -	$ -	9	-
	Commercial Real Estate
	Commercial Mortgages-Owner Occupied	554	581	-	1,573	48
	Commercial Mortgage Non-Owner Occupied	518	526	-	310	23
	Commercial Construction	-	-	-	-	-
	Consumer
	Consumer Unsecured	-	-	-	-	-
	Consumer Secured	249	249	-	154	12
	Residential
	Residential Mortgages	1,345	1,428	-	1,331	54
	Residential Consumer Construction	-	-	-	-	-

With an Allowance Recorded:
	Commercial	$ -	$ -	$ -	-	-
	Commercial Real Estate
	Commercial Mortgages-Owner Occupied	-	-	-	-	-
	Commercial Mortgage Non-Owner Occupied	-	-	-	-	-
	Commercial Construction	-	-	-	-	-
	Consumer
	Consumer Unsecured	-	-	-	-	-
	Consumer Secured	-	-	-	-	-
	Residential
	Residential Mortgages	-	-	-	-	-
	Residential Consumer Construction	-	-	-	-	-

Totals:
	Commercial	$ -	$ -	$ -	$ 9	$ -
	Commercial Real Estate
	Commercial Mortgages-Owner Occupied	554	581	-	1,573	48
	Commercial Mortgage Non-Owner Occupied	518	526	-	310	23
	Commercial Construction	-	-	-	-	-
	Consumer
	Consumer Unsecured	-	-	-	-	-
	Consumer Secured	249	249	-	154	12
	Residential
	Residential Mortgages	1,345	1,428	-	1,331	54
	Residential Consumer Construction	-	-	-	-	-
		$ 2,666	$ 2,784	$ -	$ 3,377	$ 137

(1)Recorded Investment is net of charge-offs and interest paid while a loan is in nonaccrual status.

Allowance for Credit Losses and Recorded Investment in Loans



	Allowance for Credit Losses and Recorded Investment in Loans
	(dollars in thousands)
	As of and For the Nine Months Ended September 30, 2023

		Commercial
2023	Commercial	Real Estate	Consumer	Residential	Total

Allowance for Credit Losses:

Beginning Balance, December 31, 2022	$ 1,102	$ 2,902	$ 904	$ 1,351	$ 6,259
Adoption of ASU 2016-13	(526)	1,157	257	357	1,245
Charge-Offs	(137)	-	(56)	(3)	(196)
Recoveries	50	91	42	17	200
Provision (Recovery of)	23	(187)	(41)	17	(188)
Ending Balance, September 30, 2023	512	3,963	1,106	1,739	7,320

Ending Balance: Individually evaluated	-	-	-	-	-

Ending Balance: Collectively evaluated	512	3,963	1,106	1,739	7,320

Totals:	$ 512	$ 3,963	$ 1,106	$ 1,739	$ 7,320

Financing Receivables:
Ending Balance: Individually evaluated	$ 394	$ 3,736	$ 307	$ 1,114	$ 5,551

Ending Balance: Collectively evaluated	65,433	325,728	77,624	132,569	601,354

Totals:	$ 65,827	$ 329,464	$ 77,931	$ 133,683	$ 606,905

‎

Note 8 – Loans, allowance for credit losses and OREO (continued)





	As of and For the Year Ended December 31, 2022

		Commercial
2022	Commercial	Real Estate	Consumer	Residential	Total

Allowance for Credit Losses:

Beginning Balance	$ 1,471	$ 3,637	$ 860	$ 947	$ 6,915
Charge-Offs	-	(137)	(25)	-	(162)
Recoveries	104	212	18	72	406
Provision (Recovery of)	(473)	(810)	51	332	(900)
Ending Balance	1,102	2,902	904	1,351	6,259

Ending Balance: Individually evaluated for impairment	-	-	-	-	-

Ending Balance: Collectively evaluated for impairment	1,102	2,902	904	1,351	6,259

Totals:	$ 1,102	$ 2,902	$ 904	$ 1,351	$ 6,259

Financing Receivables:
Ending Balance: Individually evaluated for impairment	$ -	$ 1,072	$ 249	$ 1,345	$ 2,666

Ending Balance: Collectively evaluated for impairment	95,885	352,953	97,710	62,411	608,959

Totals:	$ 95,885	$ 354,025	$ 97,959	$ 63,756	$ 611,625

Amortized Cost Basis by Origination Year


	Term Loans Amortized Cost Basis by Origination Year
	2023	2022	2021	2020	2019	Prior	Revolving Loans Amortized Cost Basis	Total	Revolving Loans Converted to Term
Commercial:
Risk Rating
Pass	$ 5,114	$ 4,921	$ 9,499	$ 7,010	$ 2,974	$ 19,014	$ 16,426	$ 64,958	$ 43
Special Mention	-	-	-	134	-	-	269	403	-
Substandard	-	19	233	-	7	207	-	466	180
Total	$ 5,114	$ 4,940	$ 9,732	$ 7,144	$ 2,981	$ 19,221	$ 16,695	$ 65,827	$ 223

Commercial Real Estate:
Commercial Mort. - Owner Occupied
Risk Rating
Pass	$ 6,944	$ 22,122	$ 46,430	$ 8,181	$ 9,141	$ 32,094	$ 1,115	$ 126,027	$ 162
Special Mention	-	-	-	-	-	462	-	462	-
Substandard	94.00	107	-	46	290	1,620	-	2,157	-
Total	$ 7,038	$ 22,229	$ 46,430	$ 8,227	$ 9,431	$ 34,176	$ 1,115	$ 128,646	$ 162

Commercial Mort. - Non-Owner Occupied
Risk Rating
Pass	$ 11,874	$ 52,960	$ 35,694	$ 10,344	$ 4,466	$ 54,146	$ 6,416	$ 175,900	$ -
Special Mention	-	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	1,173	-	-	1,173	-
Total	$ 11,874	$ 52,960	$ 35,694	$ 10,344	$ 5,639	$ 54,146	$ 6,416	$ 177,073	$ -

Commercial Construction/Land
Risk Rating
Pass	$ 553	$ 6,290	$ 9,935	$ 3,096	$ 635	$ 473	$ 2,357	$ 23,339	$ -
Special Mention	-	-	-	-	-	-	-	-	-
Substandard	-	-	406	-	-	-	-	406	-
Total	$ 553	$ 6,290	$ 10,341	$ 3,096	$ 635	$ 473	$ 2,357	$ 23,745	$ -

Consumer:
Consumer - Open-End
Risk Rating
Pass	$ -	$ -	$ -	$ -	$ -	$ -	$ 51,804	$ 51,804	$ 1,081
Special Mention	-	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	219	219	-
Total	$ -	$ -	$ -	$ -	$ -	$ -	$ 52,023	$ 52,023	$ 1,081

Consumer - Closed-End
Risk Rating
Pass	$ 4,128	$ 11,680	$ 675	$ 562	$ 8,034	$ 665	$ -	$ 25,744	$ -
Special Mention	-	-	-	15	-	-	-	15	-
Substandard	-	-	-	-	32	117	-	149	-
Total	$ 4,128	$ 11,680	$ 675	$ 577	$ 8,066	$ 782	$ -	$ 25,908	$ -

Residential:
Residential Mortgages
Risk Rating
Pass	$ 22,245	$ 24,834	$ 10,276	$ 9,110	$ 7,260	$ 26,378	$ -	$ 100,103	$ -
Special Mention	-	-	-	-	-	1,716	-	1,716	-
Substandard	-	-	-	105	56	1,293	-	1,454	-
Total	$ 22,245	$ 24,834	$ 10,276	$ 9,215	$ 7,316	$ 29,387	$ -	$ 103,273	$ -

Residential Consumer Constr./Land
Risk Rating
Pass	$ 6,116	$ 10,745	$ 6,270	$ 2,520	$ 2,173	$ 2,586	$ -	$ 30,410	$ -
Special Mention	-	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-	-
Total	$ 6,116	$ 10,745	$ 6,270	$ 2,520	$ 2,173	$ 2,586	$ -	$ 30,410	$ -

Totals:
Risk Rating
Pass	$ 56,974	$ 133,552	$ 118,779	$ 40,823	$ 34,683	$ 135,356	$ 78,118	$ 598,285	$ 1,286
Special Mention	-	-	-	149	-	2,178	269	2,596	-
Substandard	94	126	639	151	1,558	3,237	219	6,024	180
Total	$ 57,068	$ 133,678	$ 119,418	$ 41,123	$ 36,241	$ 140,771	$ 78,606	$ 606,905	$ 1,466

Gross Charge-Offs by Origination Year


Current Period Gross Charge-Offs by Origination Year (in thousands)


	2023	2022	2021	2020	2019	Prior	Revolving Loans Amortized Cost Basis	Total	Revolving Loans Converted to Term
Commercial	$ -	$ -	$ -	$ 17	$ -	$ 120	$ -	$ 137	$ -
Commercial Real Estate:
Commercial Mortgages-Owner Occupied	-	-	-	-	-	-	-	-	-
Commercial Mortgages-Non-Owner Occupied	-	-	-	-	-	-	-	-	-
Commercial Construction/Land	-	-	-	-	-	-	-	-	-
Consumer:
Consumer Open-End	-	-	-	-	-	6	6	12	-
Consumer Closed-End	-	25	19	-	-	-	-	44	-
Residential:
Residential Mortgages	-	-	-	-	-	3	-	3	-
Residential Consumer Construction/Land	-	-	-	-	-	-	-	-	-

Total	$ -	$ 25	$ 19	$ 17	$ -	$ 129	$ 6	$ 196	$ -

Credit Quality Information-By Class


Credit Quality Information - by Class
December 31, 2022
2022		Pass		Monitor		Special		Substandard		Doubtful		Totals
						Mention
Commercial	$	89,889	$	4,418	$	1,465	$	113	$	—	$	95,885
Commercial Real Estate:
Commercial Mortgages-Owner Occupied		132,686		1,931		—		572		—		135,189
Commercial Mortgages-Non-Owner Occupied		204,810		—		1,182		709		—		206,701
Commercial Construction		12,126		9		—		—		—		12,135
Consumer
Consumer Unsecured		2,809		—		19		—		—		2,828
Consumer Secured		94,788		—		—		343		—		95,131
Residential:
Residential Mortgages		41,591		—		—		1,458		—		43,049
Residential Consumer Construction		19,178		1,529		—		—		—		20,707

Totals	$	597,877	$	7,887	$	2,666	$	3,195	$	—	$	611,625

Loans On Non-Accrual Status


	CECL			Incurred Loss
	September 30, 2023			December 31, 2022
	Nonaccrual Loans			Nonaccrual Loans
	With No Allowance	With an Allowance	Total
Commercial	$ 72	$ -	$ 72	$ -
Commercial Real Estate:
Commercial Mortgages – Owner Occupied	107	-	107	-
Commercial Mortgages-Non-Owner Occupied	-	-	-	518
Commercial Construction/Land	406	-	406	-
Consumer
Consumer Open-End	-	-	-	-
Consumer Closed-End	-	-	-	20
Residential:
Residential Mortgages	-	-	-	95
Residential Consumer Construction	-	-	-	-
Total	$ 585	$ -	$ 585	$ 633

Age Analysis Of Past Due Financing Receivables


Age Analysis of Past Due Loans as of September 30, 2023
														Recorded
						Greater								Investment
2023		30-59 Days		60-89 Days		than		Total Past				Total		> 90 Days &
		Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
Commercial	$	72	$	—	$	—	$	72	$	65,755	$	65,827	$	—
Commercial Real Estate:
Commercial Mortgages-Owner Occupied		—		107		—		107		128,539		128,646		—
Commercial Mortgages-Non-Owner Occupied		—		—		—		—		177,073		177,073		—
Commercial Construction/Land		—		—		—		—		23,745		23,745		—
Consumer:
Consumer Open-End		175		—		—		175		51,848		52,023		—
Consumer Closed-End		162		—		—		162		25,746		25,908		—
Residential:
Residential Mortgages		595		—		—		595		102,678		103,273		—
Residential Consumer Construction/Land		—		—		—		—		30,410		30,410		—
Total	$	1,004	$	107	$	—	$	1,111	$	605,794	$	606,905	$	—


Age Analysis of Past Due Loans as of December 31, 2022

2022						Greater								Investment
		30-59 Days		60-89 Days		than		Total Past				Total		> 90 Days &
		Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
Commercial	$	52	$	194	$	—	$	246	$	95,639	$	95,885	$	—
Commercial Real Estate:
Commercial Mortgages-Owner Occupied		—		—		—		—		135,189		135,189		—
Commercial Mortgages-Non-Owner Occupied		55		—		—		55		206,646		206,701		—
Commercial Construction		—		397		—		397		11,738		12,135		—
Consumer:
Consumer Unsecured		15		—		—		15		2,813		2,828		—
Consumer Secured		62		—		13		75		95,056		95,131		—
Residential:
Residential Mortgages		139		—		95		234		42,815		43,049		—
Residential Consumer Construction		—		—		—		—		20,707		20,707		—
Total	$	323	$	591	$	108	$	1,022	$	610,603	$	611,625	$	—

Allowance for Credit Losses on Unfunded Commitments


Allowance for Credit Losses on Unfunded Commitments
Balance, December 31, 2022	$ -
Adoption of ASU 2016-13	779
Recovery of credit losses	(89)
Balance September 30, 2023	$ 690

Changes in OREO Balance


	Nine Months Ended Year Ended
	September 30, 2023		December 31, 2022
Balance at the beginning of the year (net)	$	566	$	761
Transfers from loans		—		—
Capitalized costs		—		—
Valuation adjustments		(23)		(195)
Sales proceeds		(540)		—
Loss on disposition		(3)		—
Balance at the end of the period (net)	$	—	$	566