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Loans and Allowance for Loan and Lease Losses (Tables)

12 Months Ended

Dec. 31, 2022

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

Schedule of Loan Portfolio

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

		December 31, 2022
		Bank				ALC				Total
		(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans		$	54,396			$	—			$	54,396
Secured by 1-4 family residential properties			86,946				1,480				88,426
Secured by multi-family residential properties			67,917				—				67,917
Secured by non-farm, non-residential properties			199,965				—				199,965
Commercial and industrial loans (1)			73,561				—				73,561
Consumer loans:
Direct consumer			5,145				4,908				10,053
Branch retail			—				14,237				14,237
Indirect			266,567				—				266,567
Total loans			754,497				20,625				775,122
Less: Unearned interest, fees and deferred cost			799				450				1,249
Allowance for loan losses			8,057				1,365				9,422
Net loans		$	745,641			$	18,810			$	764,451

		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			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

(1)Includes equipment financing leases and PPP loans. As of December 31, 2022 and 2021, equipment financing leases totaled $10.3 million and $11.0 million, respectively. As of December 31, 2022 and 2021, PPP loans totaled $6 thousand and $1.7 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, 2022 and 2021 and the related loan balances by loan type as of December 31, 2022 and 2021:

		As of and for the Year Ended December 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			—				(40	)			—				—				—				(1,958	)			(633	)			(382	)			(3,013	)
Recoveries			2				39				—				5				0				565				151				45				807
Provision			(113	)			143				209				7				59				1,255				696				1,052				3,308
Ending balance		$	517			$	832			$	646			$	1,970			$	919			$	866			$	518			$	3,154			$	9,422
Ending balance of allowance    attributable to loans:
Individually evaluated for    impairment		$	—			$	7			$	—			$	—			$	252			$	—			$	—			$	—			$	259
Collectively evaluated for    impairment			517				825				646				1,970				667				866				518				3,154				9,163
Total allowance for loan and lease losses		$	517			$	832			$	646			$	1,970			$	919			$	866			$	518			$	3,154			$	9,422
Ending balance of loans    receivable:
Individually evaluated for    impairment		$	—			$	582			$	—			$	2,492			$	2,429			$	18			$	—			$	—			$	5,521
Collectively evaluated for    impairment			54,396				87,844				67,917				197,473				71,132				10,035				14,237				266,567				769,601
Total loans receivable		$	54,396			$	88,426			$	67,917			$	199,965			$	73,561			$	10,053			$	14,237			$	266,567			$	775,122

		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				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

Loans By Credit Quality Indicators

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

		December 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		$	54,396			$	—			$	—			$	54,396
Secured by multi-family residential properties			67,917				—				—				67,917
Secured by non-farm, non-residential properties			196,813				651				2,501				199,965
Commercial and industrial loans			70,515				—				3,046				73,561
Total		$	389,641			$	651			$	5,547			$	395,839
As a percentage of total loans			98.43	%			0.17	%			1.40	%			100.00	%

		December 31, 2022
		Performing				Nonperforming				Total
		(Dollars in Thousands)
Loans secured by real estate:
Secured by 1-4 family residential properties		$	87,302			$	1,124			$	88,426
Consumer loans:
Direct consumer			10,007				46				10,053
Branch retail			14,205				32				14,237
Indirect			266,496				71				266,567
Total		$	378,010			$	1,273			$	379,283
As a percentage of total loans			99.66	%			0.34	%			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 December 31, 2022:

		As of December 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		$	—			$	—			$	—			$	—			$	54,396			$	54,396			$	—
Secured by 1-4 family residential    properties			800				87				78				965				87,461				88,426				—
Secured by multi-family residential    properties			—				—				—				—				67,917				67,917				—
Secured by non-farm, non-residential    properties			137				—				—				137				199,828				199,965				—
Commercial and industrial loans			61				—				300				361				73,200				73,561				—
Consumer loans:
Direct consumer			250				49				30				329				9,724				10,053				—
Branch retail			257				85				32				374				13,863				14,237
Indirect			186				55				71				312				266,255				266,567				—
Total		$	1,691			$	276			$	511			$	2,478			$	772,644			$	775,122			$	—
As a percentage of total loans			0.21	%			0.04	%			0.07	%			0.32	%			99.68	%			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 December 31, 2022 and 2021:

		Loans on Non-Accrual Status
		December 31, 2022				December 31, 2021
		(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans		$	—			$	2
Secured by 1-4 family residential properties			914				780
Secured by multi-family residential properties			—				—
Secured by non-farm, non-residential properties			—				—
Commercial and industrial loans			605				277
Consumer loans:
Direct consumer			29				743
Branch retail			32				206
Indirect			71				—
Total loans		$	1,651			$	2,008

Impaired Loans

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

		December 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			568				568				—
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			2,492				2,492				—
Commercial and industrial			2,076				2,076				—
Direct consumer			18				18				—
Total impaired loans with no related allowance recorded		$	5,154			$	5,154			$	—
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			14				14				7
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			—				—				—
Commercial and industrial			353				353				252
Direct consumer			—				—				—
Total impaired loans with an allowance recorded		$	367			$	367			$	259
Total impaired loans
Loans secured by real estate
Construction, land development and other land loans		$	—			$	—			$	—
Secured by 1-4 family residential properties			582				582				7
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			2,492				2,492				—
Commercial and industrial			2,429				2,429				252
Direct consumer			18				18				—
Total impaired loans		$	5,521			$	5,521			$	259

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

The average net investment in impaired loans and interest income recognized and received on impaired loans during the years ended December 31, 2022 and 2021 was as follows:

		Year Ended December 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		$	87			$	—			$	—
Secured by 1-4 family residential properties			614				14				6
Secured by multi-family residential properties			—				—				—
Secured by non-farm, non-residential properties			1,529				49				48
Commercial and industrial			1,279				8				5
Direct consumer			19				1				1
Total		$	3,528			$	72			$	60

		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 December 31, 2022 and 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.

		December 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:
Secured by 1-4 family residential properties			1				23				12				1				23				12
Secured by non-farm, non-residential properties			2				621				612				2				621				617
Commercial loans			1				71				22				1				71				31
Total			4			$	715			$	646				4			$	715			$	660

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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 https://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 https://asc.fasb.org/extlink&oid=123577603&loc=SL6953682-111524

+ Details

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Balance Type:	na
Period Type:	duration