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Loans and Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2021

Allowance For Loan And Lease Losses Writeoffs Net [Abstract]

Schedule of Loan Portfolio

As of March 31, 2021 and December 31, 2020, the composition of the loan portfolio by reporting segment and portfolio segment was as follows:

		March 31, 2021
		Bank				ALC				Total
		(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans		$	48,491			$	—			$	48,491
Secured by 1-4 family residential properties			79,090				3,259				82,349
Secured by multi-family residential properties			54,180				—				54,180
Secured by non-farm, non-residential properties			193,626				—				193,626
Commercial and industrial loans (1)			79,838				—				79,838
Consumer loans:
Direct consumer			6,153				20,845				26,998
Branch retail			—				31,075				31,075
Indirect sales			153,940				—				153,940
Total loans			615,318				55,179				670,497
Less: Unearned interest, fees and deferred cost			(186	)			3,978				3,792
Allowance for loan and lease losses			6,099				1,376				7,475
Net loans		$	609,405			$	49,825			$	659,230

		December 31, 2020
		Bank				ALC				Total
		(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans		$	37,282			$	—			$	37,282
Secured by 1-4 family residential properties			85,271				3,585				88,856
Secured by multi-family residential properties			54,326				—				54,326
Secured by non-farm, non-residential properties			184,528				—				184,528
Commercial and industrial loans (1)			81,735				—				81,735
Consumer loans:
Direct consumer			6,344				23,444				29,788
Branch retail			—				32,094				32,094
Indirect sales			141,514				—				141,514
Total loans			591,000				59,123				650,123
Less: Unearned interest, fees and deferred cost			(213	)			4,492				4,279
Allowance for loan and lease losses			5,917				1,553				7,470
Net loans		$	585,296			$	53,078			$	638,374

(1) Includes equipment financing leases and PPP loans. As of March 31, 2021 and December 31, 2020, equipment finance leases totaled $6.7 million and $7.0 million, respectively, and PPP loans totaled $14.8 million and $11.9 million, respectively.

Allowance for Loan Losses

The following tables present changes in the allowance for loan and lease losses during the three months ended March 31, 2021 and 2020 and the related loan balances by loan type as of March 31, 2021 and 2020:

		As of and for the Three Months Ended March 31, 2021
		Construction, Land Development, and Other				1-4 Family				Real Estate Multi- Family				Non- Farm Non- Residential				Commercial and Industrial				Direct Consumer				Branch Retail				Indirect Sales				Total
		(Dollars in Thousands)
Allowance for loan and lease losses:
Beginning balance		$	393			$	639			$	577			$	1,566			$	1,008			$	1,202			$	373			$	1,712			$	7,470
Charge-offs			(21	)			(9	)			—				—				—				(348	)			(130	)			(117	)			(625	)
Recoveries			2				3				—				1				—				170				42				11				229
Provision			70				112				(36	)			437				(412	)			13				72				145				401
Ending balance		$	444			$	745			$	541			$	2,004			$	596			$	1,037			$	357			$	1,751			$	7,475
Ending balance of allowance attributable to    loans:
Individually evaluated for impairment		$	—			$	11			$	—			$	—			$	60			$	1			$	—			$	—			$	72
Collectively evaluated for impairment			444				734				541				2,004				536				1,036				357				1,751				7,403
Total allowance for loan and lease losses		$	444			$	745			$	541			$	2,004			$	596			$	1,037			$	357			$	1,751			$	7,475
Ending balance of loans receivable:
Individually evaluated for impairment		$	—			$	720			$	—			$	4,237			$	567			$	23			$	—			$	—			$	5,547
Collectively evaluated for impairment			48,491				81,468				54,180				189,389				79,271				26,975				31,075				153,940				664,789
Loans acquired with deteriorated credit quality			—				161				—				—				—				—				—				—				161
Total loans receivable		$	48,491			$	82,349			$	54,180			$	193,626			$	79,838			$	26,998			$	31,075			$	153,940			$	670,497

		As of and for the Three Months Ended March 31, 2020
		Construction, Land Development, and Other				1-4 Family				Real Estate Multi- Family				Non- Farm Non- Residential				Commercial and Industrial				Direct Consumer				Branch Retail				Indirect Sales				Total
		(Dollars in Thousands)
Allowance for loan and lease losses:
Beginning balance		$	197			$	466			$	422			$	964			$	1,377			$	1,625			$	395			$	316			$	5,762
Charge-offs			—				(20	)			—				—				—				(492	)			(142	)			—				(654	)
Recoveries			—				12				—				5				—				205				44				—				266
Provision			68				67				16				217				(612	)			169				142				513				580
Ending balance		$	265			$	525			$	438			$	1,186			$	765			$	1,507			$	439			$	829			$	5,954
Ending balance of allowance attributable to    loans:
Individually evaluated for impairment		$	—			$	14			$	—			$	—			$	63			$	3			$	—			$	—			$	80
Collectively evaluated for impairment			265				511				438				1,186				702				1,504				439				829				5,874
Total allowance for loan and lease losses		$	265			$	525			$	438			$	1,186			$	765			$	1,507			$	439			$	829			$	5,954
Ending balance of loans receivable:
Individually evaluated for impairment		$	—			$	789			$	—			$	2,754			$	63			$	26			$	—			$	—			$	3,632
Collectively evaluated for impairment			31,927				99,226				44,029				153,468				80,708				36,281				31,568				69,982				547,189
Loans acquired with deteriorated credit quality			—				171				—				—				—				—				—				—				171
Total loans receivable		$	31,927			$	100,186			$	44,029			$	156,222			$	80,771			$	36,307			$	31,568			$	69,982			$	550,992

Loans By Credit Quality Indicators

The tables below illustrate the carrying amount of loans by credit quality indicator as of March 31, 2021:

		March 31, 2021
		Pass 1-5				Special Mention 6				Substandard 7				Total
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		$	47,929			$	557			$	5			$	48,491
Secured by multi-family residential properties			51,639				2,541				—				54,180
Secured by non-farm, non-residential properties			180,533				8,852				4,241				193,626
Commercial and industrial loans			78,025				131				1,682				79,838
Total		$	358,126			$	12,081			$	5,928			$	376,135
As a percentage of total loans			95.22	%			3.21	%			1.58	%			100.00	%

		March 31, 2021
		Performing				Nonperforming				Total
		(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties		$	80,448			$	1,901			$	82,349
Consumer loans:
Direct consumer			26,844				154				26,998
Branch retail			31,026				49				31,075
Indirect sales			153,940				—				153,940
Total		$	292,258			$	2,104			$	294,362
As a percentage of total loans			99.29	%			0.71	%			100.00	%

The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2020:

		December 31, 2020
		Pass 1-5				Special Mention 6				Substandard 7				Total
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		$	36,719			$	558			$	5			$	37,282
Secured by multi-family residential properties			54,326				—				—				54,326
Secured by non-farm, non-residential properties			170,338				8,572				5,618				184,528
Commercial and industrial loans			79,754				542				1,439				81,735
Total		$	341,137			$	9,672			$	7,062			$	357,871
As a percentage of total loans			95.33	%			2.70	%			1.97	%			100.00	%

		December 31, 2020
		Performing				Nonperforming				Total
		(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties		$	86,665			$	2,191			$	88,856
Consumer loans:
Direct consumer			29,679				109				29,788
Branch retail			31,816				278				32,094
Indirect sales			141,514				—				141,514
Total		$	289,674			$	2,578			$	292,252
As a percentage of total loans			99.12	%			0.88	%			100.00	%

Aging Analysis of Past Due Loans

The following table provides an aging analysis of past due loans by class as of March 31, 2021:

		As of March 31, 2021
		30-59 Days Past Due				60-89 Days Past Due				90 Days Or Greater				Total Past Due				Current				Total Loans				Recorded Investment > 90 Days And Accruing
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development    and other land loans		$	—			$	—			$	—			$	—			$	48,491			$	48,491			$	—
Secured by 1-4 family residential    properties			940				449				72				1,461				80,888				82,349				—
Secured by multi-family residential    properties			—				—				—				—				54,180				54,180				—
Secured by non-farm, non-residential    properties			412				—				—				412				193,214				193,626				—
Commercial and industrial loans			73				—				782				855				78,983				79,838				—
Consumer loans:
Direct consumer			173				111				133				417				26,581				26,998				—
Branch retail			81				49				48				178				30,897				31,075				—
Indirect sales			87				24				179				290				153,650				153,940				—
Total		$	1,766			$	633			$	1,214			$	3,613			$	666,884			$	670,497			$	—
As a percentage of total loans			0.26	%			0.09	%			0.18	%			0.54	%			99.46	%			100.00	%

The following table provides an aging analysis of past due loans by class as of December 31, 2020:

		As of December 31, 2020
		30-59 Days Past Due				60-89 Days Past Due				90 Days Or Greater				Total Past Due				Current				Total Loans				Recorded Investment > 90 Days And Accruing
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development    and other land loans		$	—			$	—			$	—			$	—			$	37,282			$	37,282			$	—
Secured by 1-4 family residential    properties			799				244				72				1,115				87,741				88,856				—
Secured by multi-family residential    properties			—				—				—				—				54,326				54,326				—
Secured by non-farm, non-residential    properties			287				—				1,337				1,624				182,904				184,528				—
Commercial and industrial loans			683				561				—				1,244				80,491				81,735				—
Consumer loans:
Direct consumer			257				191				214				662				29,126				29,788				—
Branch retail			176				61				144				381				31,713				32,094				—
Indirect sales			234				39				49				322				141,192				141,514				—
Total		$	2,436			$	1,096			$	1,816			$	5,348			$	644,775			$	650,123			$	—
As a percentage of total loans			0.37	%			0.17	%			0.28	%			0.82	%			99.18	%			100.00	%

Non-accruing Loans

The following table provides an analysis of non-accruing loans by class as of March 31, 2021 and December 31, 2020:

		Loans on Non-Accrual Status
		March 31, 2021				December 31, 2020
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		$	5			$	12
Secured by 1-4 family residential properties			1,055				1,248
Secured by multi-family residential properties			—				—
Secured by non-farm, non-residential properties			1				1,340
Commercial and industrial loans			1,085				74
Consumer loans:
Direct consumer			136				219
Branch retail			49				144
Indirect sales			178				49
Total loans		$	2,509			$	3,086

Impaired Loans

As of March 31, 2021, the carrying amount of the Company’s impaired loans consisted of the following:

		March 31, 2021
		Carrying Amount				Unpaid Principal Balance				Related Allowances
		(Dollars in Thousands)
Impaired loans with no related allowance recorded
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			863				863				—
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			4,237				4,237				—
Commercial and industrial			508				508				—
Direct consumer			—				—				—
Total loans with no related allowance recorded		$	5,608			$	5,608			$	—
Impaired loans with an allowance recorded
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			18				18				11
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			—				—				—
Commercial and industrial			59				59				60
Direct consumer			23				23				1
Total loans with an allowance recorded		$	100			$	100			$	72
Total impaired loans
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			881				881				11
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			4,237				4,237				—
Commercial and industrial			567				567				60
Direct consumer			23				23				1
Total impaired loans		$	5,708			$	5,708			$	72

As of December 31, 2020, the carrying amount of the Company’s impaired loans consisted of the following:  

		December 31, 2020
		Carrying Amount				Unpaid Principal Balance				Related Allowances
		(Dollars in Thousands)
Impaired loans with no related allowance recorded
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			885				885				—
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			5,594				5,594				—
Commercial and industrial			530				530				—
Direct consumer			—				—				—
Total loans with no related allowance recorded		$	7,009			$	7,009			$	—
Impaired loans with an allowance recorded
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			18				18				12
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			—				—				—
Commercial and industrial			60				60				61
Direct consumer			24				24				1
Total loans with an allowance recorded		$	102			$	102			$	74
Total impaired loans
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			903				903				12
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			5,594				5,594				—
Commercial and industrial			590				590				61
Direct consumer			24				24				1
Total impaired loans		$	7,111			$	7,111			$	74

The average net investment in impaired loans and interest income recognized and received on impaired loans during the three months ended March 31, 2021 and the year ended December 31, 2020 were as follows:

		Three Months Ended March 31, 2021
		Average Recorded Investment				Interest Income Recognized				Interest Income Received
		(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			911				2				2
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			4,270				101				68
Commercial and industrial			477				22				21
Direct consumer			23				1				1
Total		$	5,681			$	126			$	92

		Year Ended December 31, 2020
		Average Recorded Investment				Interest Income Recognized				Interest Income Received
		(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			923				10				10
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			2,467				28				28
Commercial and industrial			118				7				7
Direct consumer			25				1				2
Total		$	3,533			$	46			$	47

Loans Modified in a Troubled Debt Restructuring

The following table provides, as of March 31, 2021 and December 31, 2020, the number of loans remaining in each loan category that the Company had previously modified in a troubled debt restructuring, as well as the pre- and post-modification principal balance as of each date.

		March 31, 2021												December 31, 2020
		Number of Loans				Pre- Modification Outstanding Principal Balance				Post- Modification Principal Balance				Number of Loans				Pre- Modification Outstanding Principal Balance				Post- Modification Principal Balance
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land    loans			1			$	107			$	—				1			$	107			$	—
Secured by 1-4 family residential properties			2				59				12				2				59				12
Commercial loans			2				116				37				2				116				39
Total			5			$	282			$	49				5			$	282			$	51

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X

- Definition

Tabular disclosure of financing receivable modified as troubled debt restructuring.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953676-111524

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953682-111524

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