LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2020

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES


	September 30,			December 31,
	2020			2019
(dollars in thousands)	Amount		%	Amount		%
Consumer	$	12,167	4	$	12,076	4
Residential real estate		78,997	29		81,033	28
Indirect		80,544	30		102,384	36
Commercial		13,683	5		11,907	4
Commercial SBA PPP		17,367	6		—	0
Construction		1,983	1		3,317	1
Commercial real estate		69,341	25		74,021	27
Loans, net of deferred fees and costs		274,082	100		284,738	100
Less: Allowance for loan losses		(1,663)			(2,066)
Loans, net	$	272,419		$	282,672

Schedule of total allowance by loan segment



September 30, 2020			Residential						Commercial				Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		SBA PPP		Construction		Real Estate		Total

Balance, beginning of year	$	122	$	589	$	917	$	38	$	—	$	11	$	389	$	2,066
Charge-offs		—		—		(277)		—		—		—		—		(277)
Recoveries		9		27		81		20		—		—		—		137
Provision for loan losses		8		(65)		(117)		25		—		(4)		(110)		(263)

Balance, end of quarter	$	139	$	551	$	604	$	83	$	—	$	7	$	279	$	1,663

Individually evaluated for impairment:
Balance in allowance	$	11	$	—	$	—	$	—	$	—	$	—	$	—	$	11
Related loan balance		39		487		—		—		—		—		4,569		5,095

Collectively evaluated for impairment:
Balance in allowance	$	128	$	551	$	604	$	83	$	—	$	7	$	279	$	1,652
Related loan balance		12,128		78,510		80,544		13,683		17,367		1,983		64,772		268,987



December 31, 2019			Residential						Commercial				Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		SBA PPP		Construction		Real Estate		Total

Balance, beginning of year	$	161	$	864	$	988	$	241	$	—	$	4	$	283	$	2,541
Charge-offs		(69)		(16)		(504)		(27)		—		—		—		(616)
Recoveries		16		5		225		10		—		—		—		256
Provision for loan losses		14		(264)		208		(186)		—		7		106		(115)

Balance, end of year	$	122	$	589	$	917	$	38	$	—	$	11	$	389	$	2,066

Individually evaluated for impairment:
Balance in allowance	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	15
Related loan balance		86		631		—		—		—		—		3,680		4,397

Collectively evaluated for impairment:
Balance in allowance	$	107	$	589	$	917	$	38	$	—	$	11	$	389	$	2,051
Related loan balance		11,990		80,402		102,384		11,907		—		3,317		70,341		280,341

Schedule of allowances for credit losses


	September 30,			September 30,
(dollars in thousands)	2020			2019
Average loans	$	281,773		$	293,958
Net charge offs to average loans (annualized)		0.07	%		0.14	%

Schedule of reserve for unfunded commitments


	Nine Months Ended
	Ended September 30,
(dollars in thousands)	2020		2019
Beginning balance	$	37	$	35
Reduction of unfunded reserve		(8)		(23)
Provisions charged to operations				25

Ending balance	$	29	$	37

Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans


At September 30, 2020					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total

Consumer	$	11,954	$	68	$	—	$	145	$	12,167
Residential Real Estate		78,202		255		18		522		78,997
Indirect		79,800		528		—		216		80,544
Commercial		13,683		—		—		—		13,683
Commercial SBA PPP		17,367		—		—		—		17,367
Construction		1,983		—		—		—		1,983
Commercial Real Estate		65,260		—		—		4,081		69,341

	$	268,249	$	851	$	18	$	4,964	$	274,082


At December 31, 2019					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total

Consumer	$	11,865	$	74	$	—	$	137	$	12,076
Residential Real Estate		80,192		92		21		728		81,033
Indirect		101,605		656		—		123		102,384
Commercial		11,907		—		—		—		11,907
Commercial SBA PPP		—		—		—		—		—
Construction		3,317		—		—		—		3,317
Commercial Real Estate		70,882		—		—		3,139		74,021

	$	279,768	$	822	$	21	$	4,127	$	284,738

Schedule of impaired financing receivables


September 30, 2020			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Consumer	$	39	$	39	$	2	$	11	$	50
Total impaired loans with specific reserves		39		39		2		11		50


Impaired loans with no specific reserve:
Consumer	$	44	$	44	$	3	$	n/a	$	66
Residential Real Estate		522		768		3		n/a		1,653
Indirect		215		215		8		n/a		248
Commercial Real Estate		4,569		4,569		134		n/a		4,814
Total impaired loans with no specific reserve	$	5,350	$	5,596	$	148		—	$	6,781


December 31, 2019			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Consumer	$	26	$	41	$	2	$	15	$	50
Total impaired loans with specific reserves	$	26	$	41	$	2	$	15	$	50

Impaired loans with no specific reserve:
Consumer	$	96	$	96	$	8		n/a	$	122
Residential Real Estate		728		1,497		14		n/a		1,928
Indirect		123		123		6		n/a		—
Commercial Real Estate		3,680		3,680		81		n/a		3,845
Total impaired loans with no specific reserve	$	4,627	$	5,396	$	109		—	$	5,895

Schedule of allowance for loan loss and the unearned income on loans


	September 30,			December 31,
(dollars in thousands)	2020			2019

Troubled debt restructured loans	$	39		$	41
Non-accrual and 90+ days past due and still accruing loans to average loans		1.78	%		1.45	%
Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans		33.4	%		49.8	%

Schedule of non accrual loans



		Residential			Commercial
(dollars in thousands)	Consumer	Real Estate	Indirect	Commercial	Real Estate	Totals

December 31, 2018	186	956	116	27	662	1,947
Transfers into nonaccrual	135	572	467	86	2,746	4,006
Loans paid down/payoffs	(48)	(755)	(52)	(86)	(115)	(1,056)
Loans returned to accrual status	(88)	—	(105)	—	—	(193)
Loans charged off	(41)	(17)	(390)	(27)	—	(475)

September 30, 2019	144	756	36	—	3,293	4,229


December 31, 2019	137	728	123	—	3,139	4,127
Transfers into nonaccrual	64	—	434	—	1,619	2,117
Loans paid down/payoffs	(56)	(206)	(47)	—	(100)	(409)
Loans returned to accrual status	—	—	(17)	—	(577)	(594)
Loans charged off	—	—	(277)	—	—	(277)

September 30, 2020	145	522	216	—	4,081	4,964

Schedule of risk ratings of loans by categories of loans

The following tables provides information with respect to the Company's credit quality indicators by loan portfolio segment at September 30, 2020 and December 31, 2019:



September 30, 2020			Residential						Commercial				Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		SBA PPP		Construction		Real Estate		Total

Pass	$	12,084	$	78,475	$	80,328	$	13,683	$	17,367	$	1,983	$	64,772	$	268,692
Special mention		—		—		—		—		—		—		—		—
Substandard		83		522		49		—		—		—		4,569		5,223
Doubtful		—		—		167		—		—		—		—		167
Loss		—		—		—		—		—		—		—		—

	$	12,167	$	78,997	$	80,544	$	13,683	$	17,367	$	1,983	$	69,341	$	274,082

Nonaccrual	$	145	$	522	$	216	$	—	$		$	—	$	4,081	$	4,964
Troubled debt restructures	$	39	$	—	$	—	$	—	$	—	$	—	$	—	$	39
Number of TDRs accounts		1		—		—		—		—		—		—		1
Non-performing TDRs	$	39	$	—	$	—	$	—	$	—	$	—	$	—	$	39
Number of non-performing TDR accounts		1		—		—		—		—		—		—		1



December 31, 2019			Residential						Commercial				Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		SBA PPP		Construction		Real Estate		Total

Pass	$	11,939	$	80,305	$	102,261	$	11,907	$	—	$	3,317	$	70,341	$	280,070
Special mention		—		—		—		—		—		—		—		—
Substandard		137		728		44		—		—		—		3,680		4,589
Doubtful		—		—		79		—		—		—		—		79
Loss		—		—		—		—		—		—		—		—

	$	12,076	$	81,033	$	102,384	$	11,907	$	—	$	3,317	$	74,021	$	284,738

Nonaccrual	$	137	$	728	$	123	$	—	$	—	$	—	$	3,139	$	4,127
Troubled debt restructures	$	41	$	—	$	—	$	—	$	—	$	—	$	—	$	41
Number of TDRs accounts		1		—		—		—		—		—		—		1
Non-performing TDRs	$	41	$	—	$	—	$	—	$	—	$	—	$	—	$	41
Number of non-performing TDR accounts		1		—		—		—		—		—		—		1