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Loans and Allowance for Loan and Lease Losses (Tables)

9 Months Ended

Sep. 30, 2021

Allowance For Loan And Lease Losses Writeoffs Net [Abstract]

Schedule of Loan Portfolio

As of September 30, 2021 and December 31, 2020, the composition of the loan portfolio by reporting segment and portfolio segment was as follows:

		September 30, 2021
		Bank				ALC				Total
		(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans		$	58,175			$	—			$	58,175
Secured by 1-4 family residential properties			70,544				2,568				73,112
Secured by multi-family residential properties			51,420				—				51,420
Secured by non-farm, non-residential properties			198,745				—				198,745
Commercial and industrial loans and leases (1)			77,679				—				77,679
Consumer loans:
Direct consumer			6,221				19,624				25,845
Branch retail			—				29,764				29,764
Indirect sales			194,154				—				194,154
Total loans			656,938				51,956				708,894
Less: Unearned interest, fees and deferred cost			(276	)			4,005				3,729
Allowance for loan and lease losses			6,887				1,306				8,193
Net loans		$	650,327			$	46,645			$	696,972

		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 and leases (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 September 30, 2021 and December 31, 2020, equipment finance leases totaled $8.8 million and $7.0 million, respectively, and PPP loans totaled $3.9 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 nine months ended September 30, 2021 and 2020 and the related loan balances by loan type as of September 30, 2021 and 2020:

		As of and for the Nine Months Ended September 30, 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			(22	)			(6	)			—				—				(6	)			(848	)			(299	)			(365	)			(1,546	)
Recoveries			21				9				—				4				10				512				148				48				752
Provision			128				50				(89	)			415				(135	)			120				127				901				1,517
Ending balance		$	520			$	692			$	488			$	1,985			$	877			$	986			$	349			$	2,296			$	8,193
Ending balance of allowance attributable to    loans:
Individually evaluated for impairment		$	—			$	10			$	—			$	—			$	58			$	—			$	—			$	—			$	68
Collectively evaluated for impairment			520				682				488				1,985				819				986				349				2,296				8,125
Total allowance for loan and lease losses		$	520			$	692			$	488			$	1,985			$	877			$	986			$	349			$	2,296			$	8,193
Ending balance of loans receivable:
Individually evaluated for impairment		$	—			$	671			$	—			$	1,053			$	1,015			$	21			$	—			$	—			$	2,760
Collectively evaluated for impairment			58,175				72,430				51,420				197,692				76,664				25,824				29,764				194,154				706,123
Loans acquired with deteriorated credit quality			—				11				—				—				—				—				—				—				11
Total loans receivable		$	58,175			$	73,112			$	51,420			$	198,745			$	77,679			$	25,845			$	29,764			$	194,154			$	708,894

		As of and for the Nine Months Ended September 30, 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			—				(52	)			—				—				—				(1,347	)			(279	)			(103	)			(1,781	)
Recoveries			—				17				—				11				—				554				134				12				728
Provision			143				234				96				610				(475	)			405				175				1,288				2,476
Ending balance		$	340			$	665			$	518			$	1,585			$	902			$	1,237			$	425			$	1,513			$	7,185
Ending balance of allowance attributable to    loans:
Individually evaluated for impairment		$	—			$	13			$	—			$	—			$	61			$	2			$	—			$	—			$	76
Collectively evaluated for impairment			340				652				518				1,585				841				1,235				425				1,513				7,109
Total allowance for loan and lease losses		$	340			$	665			$	518			$	1,585			$	902			$	1,237			$	425			$	1,513			$	7,185
Ending balance of loans receivable:
Individually evaluated for impairment		$	—			$	757			$	—			$	2,644			$	61			$	25			$	—			$	—			$	3,487
Collectively evaluated for impairment			35,472				94,225				49,197				181,110				86,837				30,023				33,145				125,369				635,378
Loans acquired with deteriorated credit quality			—				165				—				—				—				—				—				—				165
Total loans receivable		$	35,472			$	95,147			$	49,197			$	183,754			$	86,898			$	30,048			$	33,145			$	125,369			$	639,030

Loans By Credit Quality Indicators

The tables below illustrate the carrying amount of loans by credit quality indicator as of September 30, 2021:

		September 30, 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		$	58,173			$	—			$	2			$	58,175
Secured by multi-family residential properties			48,882				2,538				—				51,420
Secured by non-farm, non-residential properties			187,183				10,525				1,037				198,745
Commercial and industrial loans			75,580				352				1,747				77,679
Total		$	369,818			$	13,415			$	2,786			$	386,019
As a percentage of total loans			95.80	%			3.48	%			0.72	%			100.00	%

		September 30, 2021
		Performing				Nonperforming				Total
		(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties		$	71,846			$	1,266			$	73,112
Consumer loans:
Direct consumer			25,733				112				25,845
Branch retail			29,758				6				29,764
Indirect sales			194,145				9				194,154
Total		$	321,482			$	1,393			$	322,875
As a percentage of total loans			99.57	%			0.43	%			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 September 30, 2021:

		As of September 30, 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		$	—			$	—			$	—			$	—			$	58,175			$	58,175			$	—
Secured by 1-4 family residential    properties			417				16				—				433				72,679				73,112				—
Secured by multi-family residential    properties			—				—				—				—				51,420				51,420				—
Secured by non-farm, non-residential    properties			—				—				—				—				198,745				198,745				—
Commercial and industrial loans			496				—				64				560				77,119				77,679				—
Consumer loans:
Direct consumer			569				160				90				819				25,026				25,845				—
Branch retail			469				64				6				539				29,225				29,764				—
Indirect sales			56				26				10				92				194,062				194,154				—
Total		$	2,007			$	266			$	170			$	2,443			$	706,451			$	708,894			$	—
As a percentage of total loans			0.28	%			0.04	%			0.02	%			0.34	%			99.66	%			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 September 30, 2021 and December 31, 2020:

		Loans on Non-Accrual Status
		September 30, 2021				December 31, 2020
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		$	2			$	12
Secured by 1-4 family residential properties			770				1,248
Secured by multi-family residential properties			—				—
Secured by non-farm, non-residential properties			—				1,340
Commercial and industrial loans			91				74
Consumer loans:
Direct consumer			90				219
Branch retail			6				144
Indirect sales			10				49
Total loans		$	969			$	3,086

Impaired Loans

As of September 30, 2021, the carrying amount of the Company’s impaired loans consisted of the following:

		September 30, 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			665				665				—
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			1,053				1,053				—
Commercial and industrial			957				957				—
Direct consumer			21				21				—
Total loans with no related allowance recorded		$	2,696			$	2,696			$	—
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			17				17				10
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			—				—				—
Commercial and industrial			58				58				58
Direct consumer			—				—				—
Total loans with an allowance recorded		$	75			$	75			$	68
Total impaired loans
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			682				682				10
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			1,053				1,053				—
Commercial and industrial			1,015				1,015				58
Direct consumer			21				21				—
Total impaired loans		$	2,771			$	2,771			$	68

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 nine months ended September 30, 2021 and the year ended December 31, 2020 were as follows:

		Nine Months Ended September 30, 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			807				28				25
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			2,818				127				83
Commercial and industrial			535				55				18
Direct consumer			22				1				1
Total		$	4,182			$	211			$	127

		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 September 30, 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.

		September 30, 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
Secured by non-farm, non-residential properties			2				621				618				—				—				—
Commercial loans			2				116				33				2				116				39
Total			7			$	903			$	663				5			$	282			$	51

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-URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919258-210447

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- 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=123577603&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=123577603&loc=SL6953682-111524

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