Allowance for Credit Losses [Text Block] | Note 6 : Loans Receivable and Allowance for Loan Losses The following table sets forth the Company’s gross loans by major category as of March 31, 2020 December 31, 2019: (dollars in thousands) March 31, 2020 December 31, 2019 Commercial real estate $ 668,462 $ 613,631 Construction and land development 144,215 121,395 Commercial and industrial 241,754 223,906 Owner occupied real estate 436,499 424,400 Consumer and other 103,949 101,320 Residential mortgage 287,425 263,444 Total loans receivable 1,882,304 1,748,096 Deferred (fees) costs (267 ) 99 Allowance for loan losses (10,217 ) (9,266 ) Net loans receivable $ 1,871,820 $ 1,738,929 The Company disaggregates its loan portfolio into groups of loans with similar risk characteristics for purposes of estimating the allowance for loan losses. The Company’s loan groups include commercial real estate, construction and land development, commercial and industrial, owner occupied real estate, consumer, and residential mortgages. The loan groups are also considered classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. The following tables provide the activity in and ending balances of the allowance for loan losses by loan portfolio class at and for the three March 31, 2020 2019: (dollars in thousands) Commercial Real Estate Construction and Land Development Commercial and Industrial Owner Occupied Real Estate Consumer and Other Residential Mortgage Unallocated Total Three months ended March 31 , 2020 Allowance for loan losses: Beginning balance: $ 3,043 $ 688 $ 931 $ 2,292 $ 590 $ 1,705 $ 17 $ 9,266 Charge-offs - - - - (22 ) - - (22 ) Recoveries - - 17 - 6 - - 23 Provisions (credits) 359 146 494 (433 ) 60 207 117 950 Ending balance $ 3,402 $ 834 $ 1,442 $ 1,859 $ 634 $ 1,912 $ 134 $ 10,217 Three months ended March 31, 201 9 Allowance for loan losses: Beginning balance: $ 2,462 $ 777 $ 1,754 $ 2,033 $ 577 $ 894 $ 118 $ 8,615 Charge-offs - - (929 ) (75 ) (13 ) - - (1,017 ) Recoveries - - 1 - 1 - - 2 Provisions (credits) 210 (74 ) 211 (91 ) (29 ) 91 (18 ) 300 Ending balance $ 2,672 $ 703 $ 1,037 $ 1,867 $ 536 $ 985 $ 100 $ 7,900 The following tables provide a summary of the allowance for loan losses and balance of loans receivable by loan class and by impairment method as of March 31, 2020 December 31, 2019: (dollars in thousands) Commercial Real Estate Construction and Land Development Commercial and Industrial Owner Occupied Real Estate Consumer and Other Residential Mortgage Unallocated Total March 31, 2020 Allowance for loan losses: Individually evaluated for impairment $ 322 $ - $ 72 $ 231 $ - $ 1 $ - $ 626 Collectively evaluated for impairment 3,080 834 1,370 1,628 634 1,911 134 9,591 Total allowance for loan losses $ 3,402 $ 834 $ 1,442 $ 1,859 $ 634 $ 1,912 $ 134 $ 10,217 Loans receivable: Loans evaluated individually $ 10,703 $ - $ 3,219 $ 5,345 $ 1,347 $ 889 $ - $ 21,503 Loans evaluated collectively 657,759 144,215 238,535 431,154 102,602 286,536 - 1,860,801 Total loans receivable $ 668,462 $ 144,215 $ 241,754 $ 436,499 $ 103,949 $ 287,425 $ - $ 1,882,304 (dollars in thousands) Commercial Real Estate Construction and Land Development Commercial and Industrial Owner Occupied Real Estate Consumer and Other Residential Mortgage Unallocated Total December 31, 201 9 Allowance for loan losses: Individually evaluated for impairment $ 265 $ - $ 23 $ 268 $ - $ - $ - $ 556 Collectively evaluated for impairment 2,778 688 908 2,024 590 1,705 17 8,710 Total allowance for loan losses $ 3,043 $ 688 $ 931 $ 2,292 $ 590 $ 1,705 $ 17 $ 9,266 Loans receivable: Loans evaluated individually $ 10,331 $ - $ 3,087 $ 3,634 $ 1,062 $ 768 $ - $ 18,882 Loans evaluated collectively 603,300 121,395 220,819 420,766 100,258 262,676 - 1,729,214 Total loans receivable $ 613,631 $ 121,395 $ 223,906 $ 424,400 $ 101,320 $ 263,444 $ - $ 1,748,096 A loan is considered impaired, when based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans, but also include internally classified accruing loans. The following table summarizes information with regard to impaired loans by loan portfolio class as of March 31, 2020 December 31, 2019: March 31, 2020 December 31, 201 9 (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial real estate $ 6,558 $ 6,564 $ - $ 6,186 $ 6,192 $ - Construction and land development - - - - - - Commercial and industrial 2,735 2,908 - 2,719 2,989 - Owner occupied real estate 3,234 3,391 - 2,127 2,275 - Consumer and other 1,347 1,677 - 1,062 1,375 - Residential mortgage 768 768 - 768 768 - Total $ 14,642 $ 15,308 $ - $ 12,862 $ 13,599 $ - With an allowance recorded: Commercial real estate $ 4,145 $ 4,667 $ 322 $ 4,145 $ 4,667 $ 265 Construction and land development - - - - - - Commercial and industrial 484 530 72 368 383 23 Owner occupied real estate 2,111 2,130 231 1,507 1,521 268 Consumer and other - - - - - - Residential mortgage 121 121 1 - - - Total $ 6,861 $ 7,448 $ 626 $ 6,020 $ 6,571 $ 556 Total: Commercial real estate $ 10,703 $ 11,231 $ 322 $ 10,331 $ 10,859 $ 265 Construction and land development - - - - - - Commercial and industrial 3,219 3,438 72 3,087 3,372 23 Owner occupied real estate 5,345 5,521 231 3,634 3,796 268 Consumer and other 1,347 1,677 - 1,062 1,375 - Residential mortgage 889 889 1 768 768 - Total $ 21,503 $ 22,756 $ 626 $ 18,882 $ 20,170 $ 556 The following table presents additional information regarding the Company’s impaired loans for the three March 31, 2020 2019: Three Months Ended March 31 , 2020 201 9 (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial real estate $ 6,372 $ 70 $ 6,314 $ 70 Construction and land development - - - - Commercial and industrial 2,727 1 1,655 - Owner occupied real estate 2,680 2 1,891 14 Consumer and other 1,205 2 765 2 Residential mortgage 768 - - - Total $ 13,752 $ 75 $ 10,625 $ 86 With an allowance recorded: Commercial real estate $ 4,145 $ - $ 4,614 $ - Construction and land development - - - - Commercial and industrial 426 - 1,454 - Owner occupied real estate 1,809 6 534 6 Consumer and other - - 76 - Residential mortgage 60 - - - Total $ 6,440 $ 6 $ 6,678 $ 6 Total: Commercial real estate $ 10,517 $ 70 $ 10,928 $ 70 Construction and land development - - - - Commercial and industrial 3,153 1 3,109 - Owner occupied real estate 4,489 8 2,425 20 Consumer and other 1,205 2 841 2 Residential mortgage 828 - - - Total $ 20,192 $ 81 $ 17,303 $ 92 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of March 31, 2020 December 31, 2019: (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Loans Receivable > 90 Days and Accruing At March 31 , 2020 Commercial real estate $ 7,394 $ - $ 4,470 $ 11,864 $ 656,598 $ 668,462 $ - Construction and land development - - - - 144,215 144,215 - Commercial and industrial 130 - 3,165 3,295 238,459 241,754 - Owner occupied real estate 7,647 - 4,439 12,086 424,413 436,499 - Consumer and other 662 26 1,222 1,910 102,039 103,949 - Residential mortgage 1,209 - 889 2,098 285,327 287,425 - Total $ 17,042 $ 26 $ 14,185 $ 31,253 $ 1,851,051 $ 1,882,304 $ - (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Loans Receivable > 90 Days and Accruing At December 31 , 2019 Commercial real estate $ - $ 313 $ 4,159 $ 4,472 $ 609,159 $ 613,631 $ - Construction and land development - - - - 121,395 121,395 - Commercial and industrial - 50 3,087 3,137 220,769 223,906 - Owner occupied real estate - 1,219 3,337 4,556 419,844 424,400 - Consumer and other 112 241 1,062 1,415 99,905 101,320 - Residential mortgage - - 768 768 262,676 263,444 - Total $ 112 $ 1,823 $ 12,413 $ 14,348 $ 1,733,748 $ 1,748,096 $ - The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of March 31, 2020 December 31, 2019: (dollars in thousands) Pass Special Mention Substandard Doubtful Total At March 31 , 2020 : Commercial real estate $ 663,807 $ 88 $ 4,567 $ - $ 668,462 Construction and land development 144,215 - - - 144,215 Commercial and industrial 238,535 - 3,219 - 241,754 Owner occupied real estate 430,611 543 5,345 - 436,499 Consumer and other 102,602 - 1,347 - 103,949 Residential mortgage 286,536 - 889 - 287,425 Total $ 1,866,306 $ 631 $ 15,367 $ - $ 1,882,304 (dollars in thousands) Pass Special Mention Substandard Doubtful Total At December 31, 201 9 : Commercial real estate $ 609,382 $ 90 $ 4,159 $ - $ 613,631 Construction and land development 121,395 - - - 121,395 Commercial and industrial 220,819 - 3,087 - 223,906 Owner occupied real estate 418,997 1,770 3,633 - 424,400 Consumer and other 100,258 - 1,062 - 101,320 Residential mortgage 262,555 121 768 - 263,444 Total $ 1,733,406 $ 1,981 $ 12,709 $ - $ 1,748,096 The following table shows non-accrual loans by class as of March 31, 2020 December 31, 2019: (dollars in thousands) March 31 , 2020 December 31, 201 9 Commercial real estate $ 4,470 $ 4,159 Construction and land development - - Commercial and industrial 3,165 3,087 Owner occupied real estate 4,439 3,337 Consumer and other 1,222 1,062 Residential mortgage 889 768 Total $ 14,185 $ 12,413 If these loans were performing under their original contractual rate, interest income on such loans would have increased approximately $224,000 $112,000 three March 31, 2020 2019, Troubled Debt Restructurings A modification to the contractual terms of a loan which results in a concession to a borrower that is experiencing financial difficulty is classified as a troubled debt restructuring (“TDR”). The concessions made in a TDR are those that would not may Pursuant to the CARES Act, loan modifications made between March 1, 2020 December 30, 2020 60 19 not not 30 December 31, 2019. May 5, 2020, 415 $357 March 31, 2020, none The following table summarizes information with regard to outstanding troubled debt restructurings at March 31, 2020 December 31, 2019: (dollars in thousands) Number of Loans Accrual Status Non-Accrual Status Total TDRs March 31, 2020 Commercial real estate 1 $ 6,136 $ - $ 6,136 Construction and land development - - - - Commercial and industrial - - - - Owner occupied real estate - - - - Consumer and other - - - - Residential mortgage - - - - Total 1 $ 6,136 $ - $ 6,136 December 31, 2019 Commercial real estate 1 $ 6,173 $ - $ 6,173 Construction and land development - - - - Commercial and industrial - - - - Owner occupied real estate - - - - Consumer and other - - - - Residential mortgage - - - - Total 1 $ 6,173 $ - $ 6,173 All TDRs are considered impaired and are therefore individually evaluated for impairment in the calculation of the allowance for loan losses. Some TDRs may not There were no three March 31, 2020 2019 After a loan is determined to be a TDR, the Company continues to track its performance under the most recent restructured terms. There were no three March 31, 2020 December 31, 2019. There was one March 31, 2020 December 31, 2019. no March 31, 2020 December 31, 2019. |