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 June 30, 2021 At December 31, 2020 Real estate mortgage loans: Commercial $ 136,514 $ 133,473 Residential and home equity 169,977 158,120 Construction 44,256 44,466 Total real estate mortgage loans 350,747 336,059 Commercial loans 121,032 141,542 Consumer and other loans 6,359 6,312 Total loans 478,138 483,913 Add (deduct): Net deferred loan fees (1,751 ) (1,160 ) Allowance for loan losses (5,899 ) (6,092 ) Loans, net $ 470,488 $ 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 June 30, 2021 Beginning balance $ 1,498 $ 1,857 $ 550 $ 1,430 $ 72 $ 690 $ 6,097 Provision (credit) for loan losses 34 146 (12 ) (239 ) 15 (129 ) (185 ) Net (charge-offs) recoveries - (16 ) - 11 (8 ) - (13 ) Ending balance $ 1,532 $ 1,987 $ 538 $ 1,202 $ 79 $ 561 $ 5,899 Three Month Period Ended June 30, 2020 Beginning balance $ 1,182 $ 1,612 $ 472 $ 1,315 $ 126 $ - $ 4,707 Provision (credit) for loan losses 31 58 42 882 (22 ) 236 1,227 Net (charge-offs) recoveries - (33 ) - (661 ) 8 - (686 ) Ending balance $ 1,213 $ 1,637 $ 514 $ 1,536 $ 112 $ 236 $ 5,248 Six Month Period Ended June 30, 2021 Beginning balance $ 1,500 $ 1,827 $ 539 $ 1,592 $ 75 $ 559 $ 6,092 Provision (credit) for loan losses 32 176 (1 ) (409 ) 15 2 (185 ) Net (charge-offs) recoveries - (16 ) - 19 (11 ) - (8 ) Ending balance $ 1,532 $ 1,987 $ 538 $ 1,202 $ 79 $ 561 $ 5,899 Six Month Period Ended June 30, 2020 Beginning balance $ 1,046 $ 1,573 $ 415 $ 1,284 $ 96 $ - $ 4,414 Provision (credit) for loan losses 167 112 99 1,228 21 236 1,863 Net (charge-offs) recoveries - (48 ) - (976 ) (5 ) - (1,029 ) Ending balance $ 1,213 $ 1,637 $ 514 $ 1,536 $ 112 $ 236 $ 5,248 At June 30, 2021 Individually evaluated for impairment: Recorded investment $ - $ - $ - $ - $ - $ - $ - Balance in allowance for loan losses $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment: Recorded investment $ 136,514 $ 169,977 $ 44,256 $ 121,032 $ 6,359 $ - $ 478,138 Balance in allowance for loan losses $ 1,532 $ 1,987 $ 538 $ 1,202 $ 79 $ 561 $ 5,899 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 Real Estate Mortgage Loans. Commercial. three five may five may five Residential and Home Equity. first second one four may 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 June 30, 2021 Grade: Pass $ 133,514 $ 166,958 $ 44,135 $ 120,702 $ 6,314 $ 471,623 Special mention 3,000 3,019 121 200 45 6,385 Substandard - - - 130 - 130 Doubtful - - - - - - Loss - - - - - - Total $ 136,514 $ 169,977 $ 44,256 $ 121,032 $ 6,359 $ 478,138 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 are reviewed at least annually. The Company determines the appropriate loan grade during the renewal process and reevaluates the loan grade in situations when a loan becomes past due. 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 June 30, 2021 Real estate mortgage loans: Commercial $ - $ - $ - $ - $ 136,514 $ - $ 136,514 Residential and home equity 218 309 - 527 169,450 - 169,977 Construction - - - - 44,256 - 44,256 Commercial loans 481 - - 481 120,551 - 121,032 Consumer and other loans 14 - - 14 6,345 - 6,359 Total $ 713 $ 309 $ - $ 1,022 $ 477,116 $ - $ 478,138 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 There were no impaired loans at June 30, 2021. December 31, 2020: 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 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 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 June 30, 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 $ - $ - $ - $ 298 $ 5 $ 4 Residential and home equity 471 1 - 929 - - Commercial loans 510 - - 1,505 3 3 Consumer - - - 26 - - Total $ 981 $ 1 $ - $ 2,758 $ 8 $ 7 Six Months Ended June 30, 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 $ - $ - $ - $ 484 $ 12 $ 11 Residential and home equity 449 1 - 906 - - Commercial loans 351 - - 1,531 7 7 Consumer - - - 13 - - Total $ 800 $ 1 $ - $ 2,934 $ 19 $ 18 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 three six June 30, 2021 2020. June 30, 2021 |