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Loans and Allowance for Loan and Lease Losses (Tables)

12 Months Ended

Dec. 31, 2021

Allowance For Loan And Lease Losses Writeoffs Net [Abstract]

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

	December 31, 2021
	Bank			ALC		Total
	(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans	$	67,048		$	—	$	67,048
Secured by 1-4 family residential properties		70,439			2,288		72,727
Secured by multi-family residential properties		46,000			—		46,000
Secured by non-farm, non-residential properties		197,901			—		197,901
Commercial and industrial loans ⁽¹⁾		73,947			—		73,947
Consumer loans:
Direct consumer		5,972			15,717		21,689
Branch retail		—			25,692		25,692
Indirect sales		205,940			—		205,940
Total loans		667,247			43,697		710,944
Less: Unearned interest, fees and deferred cost		(324	)		2,918		2,594
Allowance for loan losses		7,038			1,282		8,320
Net loans	$	660,533		$	39,497	$	700,030

	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 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 December 31, 2021 and 2020, equipment financing leases totaled $11.0 million and $7.0 million, respectively. As of December 31, 2021 and 2020, PPP loans totaled $1.7 and $11.9 million, respectively.

Allowance for Loan Losses

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

	As of and for the Year Ended December 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		(23	)		(12	)		—			—		(6	)		(1,230	)		(377	)		(483	)		(2,131	)
Recoveries		22			14			—			5		21			626			215			68			971
Provision		236			49			(140	)		387		(163	)		406			93			1,142			2,010
Ending balance	$	628		$	690		$	437		$	1,958	$	860		$	1,004		$	304		$	2,439		$	8,320
Ending balance of allowance attributable to loans:
Individually evaluated for impairment	$	—		$	10		$	—		$	—	$	57		$	—		$	—		$	—		$	67
Collectively evaluated for impairment		628			680			437			1,958		803			1,004			304			2,439			8,253
Total allowance for loan and lease losses	$	628		$	690		$	437		$	1,958	$	860		$	1,004		$	304		$	2,439		$	8,320
Ending balance of loans receivable:
Individually evaluated for impairment	$	—		$	646		$	—		$	1,051	$	880		$	21		$	—		$	—		$	2,598
Collectively evaluated for impairment		67,048			72,081			46,000			196,850		73,067			21,668			25,692			205,940			708,346
Total loans receivable	$	67,048		$	72,727		$	46,000		$	197,901	$	73,947		$	21,689		$	25,692		$	205,940		$	710,944

	As of and for the Year Ended December 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		—		(61	)		—		—		—			(1,621	)		(374	)		(152	)		(2,208	)
Recoveries		—		22			—		14		10			725			186			14			971
Provision		196		212			155		588		(379	)		473			166			1,534			2,945
Ending balance	$	393	$	639		$	577	$	1,566	$	1,008		$	1,202		$	373		$	1,712		$	7,470
Ending balance of allowance attributable to loans:
Individually evaluated for impairment	$	—	$	12		$	—	$	—	$	61		$	1		$	—		$	—		$	74
Collectively evaluated for impairment		393		627			577		1,566		947			1,201			373			1,712			7,396
Total allowance for loan and lease losses	$	393	$	639		$	577	$	1,566	$	1,008		$	1,202		$	373		$	1,712		$	7,470
Ending balance of loans receivable:
Individually evaluated for impairment	$	—	$	743		$	—	$	5,594	$	590		$	24		$	—		$	—		$	6,951
Collectively evaluated for impairment		37,282		87,953			54,326		178,934		81,145			29,764			32,094			141,514			643,012
Loans acquired with deteriorated credit quality		—		160			—		—		—			—			—			—			160
Total loans receivable	$	37,282	$	88,856		$	54,326	$	184,528	$	81,735		$	29,788		$	32,094		$	141,514		$	650,123

Loans By Credit Quality Indicators

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

	December 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	$	67,046		$	—		$	2		$	67,048
Secured by multi-family residential properties		43,472			2,528			—			46,000
Secured by non-farm, non-residential properties		189,425			7,442			1,034			197,901
Commercial and industrial loans		72,116			333			1,498			73,947
Total	$	372,059		$	10,303		$	2,534		$	384,896
As a percentage of total loans		96.66	%		2.68	%		0.66	%		100.00	%

	December 31, 2021
	Performing			Nonperforming			Total
	(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties	$	71,526		$	1,201		$	72,727
Consumer loans:
Direct consumer		20,939			750			21,689
Branch retail		25,486			206			25,692
Indirect sales		205,940			—			205,940
Total	$	323,891		$	2,157		$	326,048
As a percentage of total loans		99.34	%		0.66	%		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 December 31, 2021:

	As of December 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	$	—		$	—		$	—		$	—		$	67,048		$	67,048		$	—
Secured by 1-4 family residential properties		349			23			20			392			72,335			72,727			—
Secured by multi-family residential properties		—			—			—			—			46,000			46,000			—
Secured by non-farm, non-residential properties		403			—			—			403			197,498			197,901			—
Commercial and industrial loans		54			—			234			288			73,659			73,947			—
Consumer loans:
Direct consumer		652			589			730			1,971			19,718			21,689			—
Branch retail		377			182			206			765			24,927			25,692
Indirect sales		43			14			—			57			205,883			205,940			—
Total	$	1,878		$	808		$	1,190		$	3,876		$	707,068		$	710,944		$	—
As a percentage of total loans		0.27	%		0.11	%		0.17	%		0.55	%		99.45	%		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 December 31, 2021 and 2020:

	Loans on Non-Accrual Status
	December 31, 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		780		1,248
Secured by multi-family residential properties		—		—
Secured by non-farm, non-residential properties		—		1,340
Commercial and industrial loans		277		74
Consumer loans:
Direct consumer		743		219
Branch retail		206		144
Indirect sales		—		49
Total loans	$	2,008	$	3,086

Impaired Loans

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

	December 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		630		630		—
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,051		1,051		—
Commercial and industrial		823		823		—
Direct consumer		21		21		—
Total impaired loans with no related allowance recorded	$	2,525	$	2,525	$	—
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		16		16		10
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		—		—		—
Commercial and industrial		57		57		57
Direct consumer		—		—		—
Total impaired loans with an allowance recorded	$	73	$	73	$	67
Total impaired loans
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		646		646		10
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,051		1,051		—
Commercial and industrial		880		880		57
Direct consumer		21		21		—
Total impaired loans	$	2,598	$	2,598	$	67

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 impaired 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 impaired 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 years ended December 31, 2021 and 2020 was as follows:

	Year Ended December 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		773		31		31
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		2,377		140		108
Commercial and industrial		637		61		40
Direct consumer		22		9		2
Total	$	3,809	$	241	$	181

	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 December 31, 2021 and 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.

	December 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
Secured by non-farm, non-residential properties		2		621		617		—		—		—
Commercial loans		2		116		31		2		116		39
Total		7	$	903	$	660		5	$	282	$	51