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Loans and Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2022

Allowance For Loan And Lease Losses Writeoffs Net [Abstract]

Schedule of Loan Portfolio

As of March 31, 2022 and December 31, 2021, the composition of the loan portfolio by reporting segment and portfolio segment was as follows:

		March 31, 2022
		Bank				ALC				Total
		(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans		$	52,817			$	—			$	52,817
Secured by 1-4 family residential properties			67,705				2,055				69,760
Secured by multi-family residential properties			50,796				—				50,796
Secured by non-farm, non-residential properties			177,752				—				177,752
Commercial and industrial loans and leases (1)			68,098				—				68,098
Consumer loans:
Direct consumer			6,191				11,832				18,023
Branch retail			—				21,891				21,891
Indirect			220,931				—				220,931
Total loans			644,290				35,778				680,068
Less: Unearned interest, fees and deferred cost			(213	)			1,951				1,738
Allowance for loan and lease losses			6,894				1,590				8,484
Net loans		$	637,609			$	32,237			$	669,846

		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 and leases (1)			73,947				—				73,947
Consumer loans:
Direct consumer			5,972				15,717				21,689
Branch retail			—				25,692				25,692
Indirect			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 and lease losses			7,038				1,282				8,320
Net loans		$	660,533			$	39,497			$	700,030

(1) Includes equipment financing leases and PPP loans. As of March 31, 2022 and December 31, 2021, equipment finance leases totaled $10.5 million and $11.0 million, respectively, and PPP loans totaled $0.6 million and $1.7 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, 2022 and 2021 and the related loan balances by loan type as of March 31, 2022 and 2021:

		As of and for the Three Months Ended March 31, 2022
		Construction, Land Development, and Other				1-4 Family				Real Estate Multi- Family				Non- Farm Non- Residential				Commercial and Industrial				Direct Consumer				Branch Retail				Indirect				Total
		(Dollars in Thousands)
Allowance for loan and lease losses:
Beginning balance		$	628			$	690			$	437			$	1,958			$	860			$	1,004			$	304			$	2,439			$	8,320
Charge-offs			—				(2	)			—				—				—				(601	)			(101	)			(25	)			(729	)
Recoveries			1				8				—				1				—				128				23				11				172
Provision			(142	)			(12	)			47				(185	)			29				533				295				156				721
Ending balance		$	487			$	684			$	484			$	1,774			$	889			$	1,064			$	521			$	2,581			$	8,484
Ending balance of allowance attributable to    loans:
Individually evaluated for impairment		$	—			$	9			$	—			$	—			$	56			$	—			$	—			$	—			$	65
Collectively evaluated for impairment			487				675				484				1,774				833				1,064				521				2,581				8,419
Total allowance for loan and lease losses		$	487			$	684			$	484			$	1,774			$	889			$	1,064			$	521			$	2,581			$	8,484
Ending balance of loans receivable:
Individually evaluated for impairment		$	—			$	637			$	—			$	1,039			$	670			$	20			$	—			$	—			$	2,366
Collectively evaluated for impairment			52,817				69,123				50,796				176,713				67,428				18,003				21,891				220,931				677,702
Loans acquired with deteriorated credit quality			—								—				—				—				—								—				—
Total loans receivable		$	52,817			$	69,760			$	50,796			$	177,752			$	68,098			$	18,023			$	21,891			$	220,931			$	680,068

		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				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

Loans By Credit Quality Indicators

The tables below illustrate the carrying amount of loans by credit quality indicator as of March 31, 2022:

		March 31, 2022
		Pass 1-5				Special Mention 6				Substandard 7				Total
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		$	52,815			$	—			$	2			$	52,817
Secured by multi-family residential properties			50,796				—				—				50,796
Secured by non-farm, non-residential properties			173,661				3,069				1,022				177,752
Commercial and industrial loans			66,872				—				1,226				68,098
Total		$	344,144			$	3,069			$	2,250			$	349,463
As a percentage of total loans			98.48	%			0.88	%			0.64	%			100.00	%

		March 31, 2022
		Performing				Nonperforming				Total
		(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties		$	68,585			$	1,175			$	69,760
Consumer loans:
Direct consumer			17,280				743				18,023
Branch retail			21,572				319				21,891
Indirect			220,931				—				220,931
Total		$	328,368			$	2,237			$	330,605
As a percentage of total loans			99.32	%			0.68	%			100.00	%

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			205,940				—				205,940
Total		$	323,891			$	2,157			$	326,048
As a percentage of total loans			99.34	%			0.66	%			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, 2022:

		As of March 31, 2022
		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		$	—			$	—			$	—			$	—			$	52,817			$	52,817			$	—
Secured by 1-4 family residential    properties			334				24				164			$	522				69,238				69,760				—
Secured by multi-family residential    properties			—				—				—			$	—				50,796				50,796				—
Secured by non-farm, non-residential    properties			3				—				—			$	3				177,749				177,752				—
Commercial and industrial loans			21				—				234			$	255				67,843				68,098				—
Consumer loans:
Direct consumer			438				226				723			$	1,387				16,636				18,023				—
Branch retail			220				189				319			$	728				21,163				21,891				—
Indirect			21				—				—			$	21				220,910				220,931				—
Total		$	1,037			$	439			$	1,440			$	2,916			$	677,152			$	680,068			$	—
As a percentage of total loans			0.16	%			0.06	%			0.21	%			0.43	%			99.57	%			100.00	%

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			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	%

Non-accruing Loans

The following table provides an analysis of non-accruing loans by class as of March 31, 2022 and December 31, 2021:

		Loans on Non-Accrual Status
		March 31, 2022				December 31, 2021
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		$	2			$	2
Secured by 1-4 family residential properties			899				780
Secured by multi-family residential properties			—				—
Secured by non-farm, non-residential properties			—				—
Commercial and industrial loans			274				277
Consumer loans:
Direct consumer			734				743
Branch retail			319				206
Indirect			—				—
Total loans		$	2,228			$	2,008

Impaired Loans

As of March 31, 2022, the carrying amount of the Company’s impaired loans consisted of the following:

		March 31, 2022
		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			621				621				—
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			1,039				1,039				—
Commercial and industrial			614				614				—
Direct consumer			20				20				—
Total loans with no related allowance recorded		$	2,294			$	2,294			$	—
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				9
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			—				—				—
Commercial and industrial			56				56				56
Direct consumer			—				—				—
Total loans with an allowance recorded		$	72			$	72			$	65
Total impaired loans
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			637				637				9
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			1,039				1,039				—
Commercial and industrial			670				670				56
Direct consumer			20				20				—
Total impaired loans		$	2,366			$	2,366			$	65

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 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 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

The average net investment in impaired loans and interest income recognized and received on impaired loans during the three months ended March 31, 2022 and the year ended December 31, 2021 were as follows:

		Three Months Ended March 31, 2022
		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			642				2				1
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			1,043				13				15
Commercial and industrial			739				5				5
Direct consumer			20				—				1
Total		$	2,444			$	20			$	22

		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

Loans Modified in a Troubled Debt Restructuring

The following table provides, as of March 31, 2022 and December 31, 2021, 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, 2022												December 31, 2021
		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				615				2				621				617
Commercial loans			2				116				29				2				116				31
Total			7			$	903			$	656				7			$	903			$	660

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Tabular disclosure of allowance for credit loss on financing receivable.

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Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

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-Publisher FASB
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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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