Loans and leases receivable disclosure [Text Block] | NOTE 5: LOANS AND ALLOWANCE March 31, December 31, (Dollars in thousands) 2024 2023 Commercial and industrial $ 78,920 $ 73,374 Construction and land development 58,909 68,329 Commercial real estate: Owner occupied 63,826 66,783 Hotel/motel 38,822 39,131 Multi-family 45,634 45,841 Other 152,202 135,552 Total commercial real estate 300,484 287,307 Residential real estate: Consumer mortgage 59,813 60,545 Investment property 58,427 56,912 Total residential real estate 118,240 117,457 Consumer installment 10,967 10,827 Total Loans $ 567,520 $ 557,294 Loans secured by real estate were approximately 84.2% of the Company’s 31, 2024, the Company’s geographic surrounding areas. The loan portfolio segment is defined as the level at which an entity develops and documents a determining its allowance for credit losses. As part of the Company’s portfolio included the following portfolio segments: commercial and industrial, commercial real estate, residential real estate, and consumer installment. Where appropriate, segments are further disaggregated into classes. A class is generally determined based risk characteristics of the loan, and an entity’s The following describes Commercial and industrial (“C&I”) — includes loans to finance business operations, equipment purchases, or for small and medium-sized commercial customers. Also included production. borrower. Construction and land development (“C&D”) — includes both loans and credit lines for the purpose of purchasing, carrying, lines for construction of residential, multi-family, dependent upon the sale or refinance of the real estate collateral. Commercial real estate includes loans in these classes: ● Owner occupied owner-occupied facilities primarily for small and medium-sized source of repayment is the cash flow from business operations and activities of the borrower, property. ● Hotel/motel – includes loans for hotels and motels. income generated from the hotel/motel securing the loan. the occupancy and rental rates, as well as the financial health of the borrower. ● Multi-family for 5 or more unit residential properties and apartments leased to residents. Generally repayment is dependent upon income generated from the real estate collateral. takes into consideration the occupancy and rental rates, ● Other multi-family properties, and which retail centers, medical and professional offices, single retail stores, local and other businesses. the real estate collateral. The underwriting of these loans takes into consideration as well as the financial health of the borrower. Residential real estate (“RRE”) — includes loans in these two classes: ● Consumer mortgage consumers that are secured by a primary residence or second home. These loans are underwritten with the Bank’s general loan policies and each borrower’s financial condition, satisfactory credit history ● Investment property Generally, securing the loan. The underwriting of these loans takes into consideration the rental rates and well as the financial health of the borrowers. Consumer installment — includes loans to individuals, include personal lines of credit, automobile loans, and other retail loans. the Bank’s general loan policies and procedures borrower’s financial condition, satisfactory credit history, The following is a summary of current, accruing past due, and nonaccrual loans by portfolio 31, 2024 and December 31, 2023. Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total (Dollars in thousands) Current Past Due 90 days Loans Accrual Loans March 31, 2024: Commercial and industrial $ 78,914 6 — 78,920 — $ 78,920 Construction and land development 58,909 — — 58,909 — 58,909 Commercial real estate: Owner occupied 63,061 — — 63,061 765 63,826 Hotel/motel 38,822 — — 38,822 — 38,822 Multi-family 45,634 — — 45,634 — 45,634 Other 152,202 — — 152,202 — 152,202 Total commercial real estate 299,719 — — 299,719 765 300,484 Residential real estate: Consumer mortgage 59,656 60 — 59,716 97 59,813 Investment property 58,427 — — 58,427 — 58,427 Total residential real estate 118,083 60 — 118,143 97 118,240 Consumer installment 10,935 16 — 10,951 16 10,967 Total $ 566,560 82 — 566,642 878 $ 567,520 December 31, 2023: Commercial and industrial $ 73,108 266 — 73,374 — $ 73,374 Construction and land development 68,329 — — 68,329 — 68,329 Commercial real estate: Owner occupied 66,000 — — 66,000 783 66,783 Hotel/motel 39,131 — — 39,131 — 39,131 Multi-family 45,841 — — 45,841 — 45,841 Other 135,552 — — 135,552 — 135,552 Total commercial real estate 286,524 — — 286,524 783 287,307 Residential real estate: Consumer mortgage 60,442 — — 60,442 103 60,545 Investment property 56,597 290 — 56,887 25 56,912 Total residential real estate 117,039 290 — 117,329 128 117,457 Consumer installment 10,781 46 — 10,827 — 10,827 Total $ 555,781 602 — 556,383 911 $ 557,294 Credit Quality Indicators The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories standard asset classification system used by the federal banking agencies. associated allowance for credit losses using historical losses adjusted defined as follows: ● Pass – loans which are well protected by the current net worth and paying capacity any) or by the fair value, less cost to acquire and sell, of any underlying collateral. ● Special Mention – loans with potential weakness that may, inadequately protect the Company’s position not expose an institution to sufficient risk to warrant an adverse ● Substandard Accruing – loans that exhibit a well-defined weakness which presently jeopardizes even though they are currently performing. These loans are characterized by the distinct possibility Company may incur a loss in the future if these weaknesses are not corrected ● Nonaccrual – includes loans where management has determined that expected. Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) March 31, 2024: Commercial and industrial Pass $ 6,167 10,960 19,891 13,067 5,429 14,697 8,449 $ 78,660 Special mention — — — — — — — — Substandard 54 — 194 12 — — — 260 Nonaccrual — — — — — — — — Total commercial and industrial 6,221 10,960 20,085 13,079 5,429 14,697 8,449 78,920 Current period gross charge-offs — — — — — — — — Construction and land development Pass 5,668 26,093 22,446 1,615 1,506 200 905 58,433 Special mention — 302 — — — — — 302 Substandard 174 — — — — — — 174 Nonaccrual — — — — — — — — Total construction and land development 5,842 26,395 22,446 1,615 1,506 200 905 58,909 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 100 12,842 7,197 18,076 10,283 10,744 2,583 61,825 Special mention 931 257 — — — — — 1,188 Substandard — — — — — 48 — 48 Nonaccrual — — — — — 765 — 765 Total owner occupied 1,031 13,099 7,197 18,076 10,283 11,557 2,583 63,826 Current period gross charge-offs — — — — — — — — Hotel/motel Pass 248 8,925 9,765 3,174 1,445 15,265 — 38,822 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 248 8,925 9,765 3,174 1,445 15,265 — 38,822 Current period gross charge-offs — — — — — — — — Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) March 31, 2024: Multi-family Pass 113 12,270 17,834 1,934 6,060 6,682 741 45,634 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 113 12,270 17,834 1,934 6,060 6,682 741 45,634 Current period gross charge-offs — — — — — — — — Other Pass 19,687 24,583 35,601 31,278 14,036 25,552 1,313 152,050 Special mention — — — — — — — — Substandard — — — — 152 — — 152 Nonaccrual — — — — — — — — Total other 19,687 24,583 35,601 31,278 14,188 25,552 1,313 152,202 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 1,276 19,445 19,230 2,682 2,636 13,106 327 58,702 Special mention — — — — — 493 — 493 Substandard — — — — — 521 — 521 Nonaccrual — — — — — 97 — 97 Total consumer mortgage 1,276 19,445 19,230 2,682 2,636 14,217 327 59,813 Current period gross charge-offs — — — — — — — — Investment property Pass 5,736 12,255 11,396 9,219 11,829 6,214 1,369 58,018 Special mention — — — — — — — — Substandard — 83 96 — 230 — — 409 Nonaccrual — — — — — — — — Total investment property 5,736 12,338 11,492 9,219 12,059 6,214 1,369 58,427 Current period gross charge-offs — — — — — — — — Consumer installment Pass 2,095 5,157 2,690 570 148 222 — 10,882 Special mention — 10 1 — 1 — — 12 Substandard 10 34 11 2 — — — 57 Nonaccrual — 9 7 — — — — 16 Total consumer installment 2,105 5,210 2,709 572 149 222 — 10,967 Current period gross charge-offs — 6 17 1 — — — 24 Total loans Pass 41,090 132,530 146,050 81,615 53,372 92,682 15,687 563,026 Special mention 931 569 1 — 1 493 — 1,995 Substandard 238 117 301 14 382 569 — 1,621 Nonaccrual — 9 7 — — 862 — 878 Total loans $ 42,259 133,225 146,359 81,629 53,755 94,606 15,687 $ 567,520 Total current period gross charge-offs $ — 6 17 1 — — — 24 Year of Origination 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Total Loans (Dollars in thousands) December 31, 2023: Commercial and industrial Pass $ 11,571 18,074 13,746 5,602 7,298 7,819 9,003 $ 73,113 Special mention — — — — — — — — Substandard 55 203 — — 3 — — 261 Nonaccrual — — — — — — — — Total commercial and industrial 11,626 18,277 13,746 5,602 7,301 7,819 9,003 73,374 Current period gross charge-offs — — 13 — 151 — — 164 Construction and land development Pass 38,646 25,382 1,716 1,526 120 157 782 68,329 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total construction and land development 38,646 25,382 1,716 1,526 120 157 782 68,329 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 12,966 7,337 18,548 10,458 3,948 9,786 2,647 65,690 Special mention 260 — — — — — — 260 Substandard — — — — 50 — — 50 Nonaccrual — — — — 783 — — 783 Total owner occupied 13,226 7,337 18,548 10,458 4,781 9,786 2,647 66,783 Current period gross charge-offs — — — — — — — — Hotel/motel Pass 9,025 9,873 3,205 1,493 3,881 11,654 — 39,131 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 9,025 9,873 3,205 1,493 3,881 11,654 — 39,131 Current period gross charge-offs — — — — — — — — Year of Origination 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Total Loans (Dollars in thousands) December 31, 2023: Multi-family Pass 12,379 17,955 1,953 6,112 3,790 3,043 609 45,841 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 12,379 17,955 1,953 6,112 3,790 3,043 609 45,841 Current period gross charge-offs — — — — — — — — Other Pass 25,810 36,076 31,687 14,597 10,736 15,440 1,052 135,398 Special mention — — — — — — — — Substandard — — — 154 — — — 154 Nonaccrual — — — — — — — — Total other 25,810 36,076 31,687 14,751 10,736 15,440 1,052 135,552 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 20,147 20,177 2,683 2,665 1,281 12,217 249 59,419 Special mention — — — — 190 305 — 495 Substandard — — — — — 528 — 528 Nonaccrual — — — — — 103 — 103 Total consumer mortgage 20,147 20,177 2,683 2,665 1,471 13,153 249 60,545 Current period gross charge-offs — — — — — — — — Investment property Pass 13,398 12,490 9,397 12,209 5,485 1,865 1,478 56,322 Special mention 41 — — — — — — 41 Substandard 43 248 — 233 — — — 524 Nonaccrual — — — — — 25 — 25 Total investment property 13,482 12,738 9,397 12,442 5,485 1,890 1,478 56,912 Current period gross charge-offs — — — — — — — — Consumer installment Pass 5,688 3,837 740 206 106 141 — 10,718 Special mention 9 25 9 2 — — — 45 Substandard 37 11 5 11 — — — 64 Nonaccrual — — — — — — — - Total consumer installment 5,734 3,873 754 219 106 141 — 10,827 Current period gross charge-offs 34 57 13 1 — — — 105 Total loans Pass 149,630 151,201 83,675 54,868 36,645 62,122 15,820 553,961 Special mention 310 25 9 2 190 305 — 841 Substandard 135 462 5 398 53 528 — 1,581 Nonaccrual — — — — 783 128 — 911 Total loans $ 150,075 151,688 83,689 55,268 37,671 63,083 15,820 $ 557,294 Total current period gross charge-offs $ 34 57 26 1 151 — — 269 Allowance for Credit Losses The Company adopted ASC 326 on January 1, 2023, which introduced the CECL losses over the life of a financial asset. Under the CECL methodology, collective basis for pools of loans with similar risk characteristics, and for loans that do with the collectively evaluated pools, evaluations are performed on an individual The composition of the provision for credit losses for the respective periods Quarter ended March 31, (Dollars in thousands) 2024 2023 Provision for credit losses: Loans $ 285 $ 40 Reserve for unfunded commitments 49 26 Total provision for credit $ 334 $ 66 The following table details the changes in the allowance for credit losses for loans, by portfolio periods. (Dollars in thousands) Commercial and industrial Construction and land development Commercial real estate Residential real estate Consumer installment Total Quarter ended: March 31, 2024 Beginning balance $ 1,288 960 3,921 546 148 $ 6,863 Charge-offs — — — — (24) (24) Recoveries 66 — — 3 22 91 Net recoveries (charge-offs) 66 — — 3 (2) 67 Provision for credit losses 61 (120) 281 64 (1) 285 Ending balance $ 1,415 840 4,202 613 145 $ 7,215 Quarter ended: March 31, 2023 Beginning balance $ 747 949 3,109 828 132 $ 5,765 Impact of adopting ASC 326 532 (17) 873 (347) (22) 1,019 Charge-offs — — — — (11) (11) Recoveries 2 — — 5 1 8 Net recoveries (charge-offs) 2 — — 5 (10) (3) Provision for credit losses (49) 89 (16) 11 5 40 Ending balance $ 1,232 1,021 3,966 497 105 $ 6,821 The following table presents the amortized cost basis of collateral dependent loans, which determine expected credit losses as of March 31, 2024 and December 31, 2023: (Dollars in thousands) Real Estate Total Loans March 31, 2024: Commercial real estate $ 765 $ 765 Total $ 765 $ 765 December 31, 2023: Commercial real estate $ 783 $ 783 Total $ 783 $ 783 The following table is a summary of the Company’s December 31, 2023. CECL Nonaccrual loans Nonaccrual loans Total (Dollars in thousands) with no Allowance with an Allowance Nonaccrual Loans March 31, 2024 Commercial real estate $ 765 — 765 Residential real estate — 97 97 Consumer — 16 16 Total $ 765 113 878 December 31, 2023 Commercial real estate $ 783 — 783 Residential real estate — 128 128 Total $ 783 128 911 |