Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ( 3 Loans Segments and classes of loans, excluding loans held for sale, are as follows: (in thousands) At March 31, 2021 At December 31, 2020 Real estate mortgage loans: Commercial $ 133,240 $ 133,473 Residential and home equity 160,622 158,120 Construction 45,175 44,466 Total real estate mortgage loans 339,037 336,059 Commercial loans 143,748 141,542 Consumer and other loans 6,010 6,312 Total loans 488,795 483,913 Add (deduct): Net deferred loan fees (1,926 ) (1,160 ) Allowance for loan losses (6,097 ) (6,092 ) Loans, net $ 480,772 $ 476,661 An analysis of the change in allowance for loan losses follows: Real Estate Mortgage Loans Residential Consumer and Home Commercial and Other Unallocated (in thousands) Commercial Equity Construction Loans Loans Reserves Total Three Month Period Ended March 31, 2021 Beginning balance $ 1,500 $ 1,827 $ 539 $ 1,592 $ 75 $ 559 $ 6,092 (Credit) provision for loan losses (2 ) 30 11 (170 ) - 131 - Net (charge-offs) recoveries - - - 8 (3 ) - 5 Ending balance $ 1,498 $ 1,857 $ 550 $ 1,430 $ 72 $ 690 $ 6,097 Three Month Period Ended March 31, 2020 Beginning balance $ 1,046 $ 1,573 $ 415 $ 1,284 $ 96 $ - $ 4,414 Provision (credit) for loan losses 136 54 57 346 43 - 636 Net (charge-offs) recoveries - (15 ) - (315 ) (13 ) - (343 ) Ending balance $ 1,182 $ 1,612 $ 472 $ 1,315 $ 126 $ - $ 4,707 At March 31, 2021 Individually evaluated for impairment: Recorded investment $ - $ 471 $ - $ 326 $ - $ - $ 797 Balance in allowance for loan losses $ - $ 49 $ - $ 180 $ - $ - $ 229 Collectively evaluated for impairment: Recorded investment $ 133,240 $ 160,151 $ 45,175 $ 143,422 $ 6,010 $ - $ 487,998 Balance in allowance for loan losses $ 1,498 $ 1,808 $ 550 $ 1,250 $ 72 $ 690 $ 5,868 At December 31, 2020 Individually evaluated for impairment: Recorded investment $ - $ 666 $ - $ 585 $ - $ - $ 1,251 Balance in allowance for loan losses $ - $ - $ - $ 179 $ - $ - $ 179 Collectively evaluated for impairment: Recorded investment $ 133,473 $ 157,454 $ 44,466 $ 140,957 $ 6,312 $ - $ 482,662 Balance in allowance for loan losses $ 1,500 $ 1,827 $ 539 $ 1,413 $ 75 $ 559 $ 5,913 The Company has divided the loan portfolio into three five Real Estate Mortgage Loans. three Commercial. three five may five may five Residential and Home Equity. first second one four may 1 3 5 7 10 15 30 Construction. one two one ten not third may Commercial Loans. not third five may not one 504 7A 504 7A may may Cons umer and Other Loans . may not not The following summarizes the loan credit quality: Real Estate Mortgage Loans Residential Consumer and Home Commercial and Other (in thousands) Commercial Equity Construction Loans Loans Total At March 31, 2021 Grade: Pass $ 129,813 $ 158,222 $ 44,372 $ 143,122 $ 5,972 $ 481,501 Special mention 3,427 1,929 803 138 38 6,335 Substandard - 471 - 488 - 959 Doubtful - - - - - - Loss - - - - - - Total $ 133,240 $ 160,622 $ 45,175 $ 143,748 $ 6,010 $ 488,795 At December 31, 2020 Grade: Pass $ 130,846 $ 156,985 $ 43,622 $ 140,370 $ 6,278 $ 478,101 Special mention 2,627 469 844 405 34 4,379 Substandard - 666 - 767 - 1,433 Doubtful - - - - - - Loss - - - - - - Total $ 133,473 $ 158,120 $ 44,466 $ 141,542 $ 6,312 $ 483,913 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. Loans classified as substandard or special mention are reviewed quarterly by the Company for further deterioration or improvement to determine if they are appropriately classified and whether there is any impairment. All loans are graded upon initial issuance. Furthermore, construction loans, nonowner-occupied commercial real estate loans, and commercial loan relationships in excess of $500,000 Loans excluded from the review process above are generally classified as pass credits until: (a) they become past due; (b) management becomes aware of deterioration in the credit worthiness of the borrower; or (c) the client contacts the Company for a modification. In these circumstances, the loan is specifically evaluated for potential classification as to special mention, substandard or even charged-off. The Company uses the following definitions for risk ratings: Pass Special Mention may not not Substandard not Doubtful one Loss not not no Age analysis of past due loans is as follows: Accruing Loans Greater Than 30-59 Days 60-89 Days 90 Days Total Past Nonaccrual Total (in thousands) Past Due Past Due Past Due Due Current Loans Loans At March 31, 2021 Real estate mortgage loans: Commercial $ - $ - $ - $ - $ 133,240 $ - $ 133,240 Residential and home equity 1,178 - - 1,178 158,973 471 160,622 Construction 106 - - 106 45,069 - 45,175 Commercial loans 506 - - 506 142,916 326 143,748 Consumer and other loans 5 - - 5 6,005 - 6,010 Total $ 1,795 $ - $ - $ 1,795 $ 486,203 $ 797 $ 488,795 At December 31, 2020 Real estate mortgage loans: Commercial $ - $ - $ - $ - $ 133,473 $ - $ 133,473 Residential and home equity 536 - - 536 156,918 666 158,120 Construction 195 - - 195 44,271 - 44,466 Commercial loans - - - - 140,957 585 141,542 Consumer and other loans - - - - 6,312 - 6,312 Total $ 731 $ - $ - $ 731 $ 481,931 $ 1,251 $ 483,913 The following summarizes the amount of impaired loans: With No Related Allowance Recorded With an Allowance Recorded Total Unpaid Unpaid Unpaid Contractual Contractual Contractual Recorded Principal Recorded Principal Related Recorded Principal Related (in thousands) Investment Balance Investment Balance Allowance Investment Balance Allowance At March 31, 2021 Real estate mortgage loans- Residential and home equity $ 422 $ 422 $ 49 $ 49 $ 49 $ 471 $ 471 $ 49 Commercial loans - - 326 326 180 326 326 180 Total $ 422 $ 422 $ 375 $ 375 $ 229 $ 797 $ 797 $ 229 At December 31, 2020 Real estate mortgage loans- Residential and home equity $ 666 $ 666 $ - $ - $ - $ 666 $ 666 $ - Commercial loans - - 585 585 179 585 585 179 Total $ 666 $ 666 $ 585 $ 585 $ 179 $ 1,251 $ 1,251 $ 179 There were no March 31, 2021 December 31, 2020 The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows: Three Months Ended March 31, 2021 2020 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income (in thousands) Investment Recognized Received Investment Recognized Received Real estate mortgage loans: Commercial $ - $ - $ - $ 573 $ 7 $ 7 Residential and home equity 556 - - 882 - - Commercial loans 510 - - 1,554 4 4 Consumer - - - 1 - - Total $ 1,066 $ - $ - $ 3,010 $ 11 $ 11 The restructuring of a loan constitutes a troubled debt restructuring (“TDR”) if the creditor grants a concession to the debtor that it would not may not 19 not no three March 31, 2021 2020. March 31, 2021 $66,000 |