LOANS, ALLOWANCE FOR CREDIT LOSSES, AND CREDIT QUALITY

Summary of the activity in the ACL by loan type

A summary of the activity in the ACL - Loans by loan type for the three months ended March 31, 2024 is summarized as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -				Construction
	Commercial /		Owner		Non - Owner		Multi-		and		Residential
	Industrial		Occupied		Occupied		Family		Development		1-4 Family		Consumer		Other		Total
ACL - Loans - January 1, 2024	$	5,965	$	12,285	$	5,700	$	4,754	$	3,597	$	10,620	$	615	$	73	$	43,609
Charge-offs		(17)		(1)		—		—		—		(1)		(4)		(29)		(52)
Recoveries		2		611		—		—		—		3		—		5		621
Provision		(139)		547		381		(153)		(359)		(122)		(7)		52		200
ACL - Loans - March 31, 2024	$	5,811	$	13,442	$	6,081	$	4,601	$	3,238	$	10,500	$	604	$	101	$	44,378

A summary of the activity in the ACL – Loans by loan type for the three months ended March 31, 2023 is summarized as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -				Construction
	Commercial /		Owner		Non - Owner		Multi-		and		Residential
	Industrial		Occupied		Occupied		Family		Development		1-4 Family		Consumer		Other		Total
ACL - Loans - January 1, 2023	$	4,071	$	5,204	$	2,644	$	2,761	$	1,592	$	5,944	$	314	$	150	$	22,680
Adoption of CECL		1,859		1,982		1,161		753		2,063		2,567		620		(33)		10,972
ACL - Loans on PCD loans acquired		1,082		4,424		—		—		—		28		—		—		5,534
Charge-offs		—		—		—		—		—		—		—		(9)		(9)
Recoveries		1		16		—		—		—		27		1		2		47
Provision		211		1,023		795		532		(545)		1,978		71		27		4,092
ACL - Loans - March 31, 2023	$	7,224	$	12,649	$	4,600	$	4,046	$	3,110	$	10,544	$	1,006	$	137	$	43,316

Summary of past due loans

The Company’s past due and non-accrual loans as of March 31, 2024 is summarized as follows:


			90 Days						Non-Accrual
	30-89 Days		or more						with no
	Past Due		Past Due		Non-				specifically
	Accruing		and Accruing		Accrual		Total		allocated ACL
Commercial/industrial	$	61	$	—	$	4,601	$	4,662	$	—
Commercial real estate - owner occupied		179		1,560		2,754		4,493		14
Commercial real estate - non-owner occupied		13		—		—		13		—
Multi-family		—		—		—		—		—
Construction and development		56		—		—		56		—
Residential 1‑4 family		1,552		703		244		2,499		244
Consumer		14		4		11		29		11
Other		—		—		—		—		—
	$	1,875	$	2,267	$	7,610	$	11,752	$	269

The Company’s past due and non-accrual loans as of December 31, 2023 is summarized as follows:


			90 Days						Non-Accrual
	30-89 Days		or more						with no
	Past Due		Past Due		Non-				specifically
	Accruing		and Accruing		Accrual		Total		allocated ACL
Commercial/industrial	$	4,303	$	106	$	1,344	$	5,753	$	365
Commercial real estate - owner occupied		180		252		3,877		4,309		343
Commercial real estate - non-owner occupied		14		—		—		14		—
Multi-family		—		—		—		—		—
Construction and development		—		—		—		—		—
Residential 1‑4 family		871		507		429		1,807		394
Consumer		68		28		12		108		11
Other		—		—		—		—		—
	$	5,436	$	893	$	5,662	$	11,991	$	1,113

Schedule of loans by risk ratings and year of origination

The following tables present total loans by risk ratings and year of origination. Loans acquired from other previously acquired institutions have been included in the table based upon the actual origination date.


	Amortized Cost Basis by Origination Year
As of March 31, 2024																Revolving
		2024		2023		2022		2021		2020		Prior		Revolving		to Term		Total
Commercial/industrial
Grades 1-4	$	18,760	$	59,266	$	127,515	$	58,432	$	49,594	$	27,040	$	91,935	$	-	$	432,542
Grade 5		4,163		8,763		5,146		11,897		4,729		3,334		23,382		-		61,414
Grade 6		-		848		88		628		135		240		1,639		-		3,578
Grade 7		9		345		251		5,068		1,998		1,511		4,214		-		13,396
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	22,932	$	69,222	$	133,000	$	76,025	$	56,456	$	32,125	$	121,170	$	-	$	510,930
Current-period gross charge-offs	$	-	$	-	$	-	$	15	$	-	$	2	$	-	$	-	$	17
Commercial real estate - owner occupied
Grades 1-4	$	3,042	$	62,423	$	105,056	$	165,290	$	105,647	$	214,671	$	57,259	$	-	$	713,388
Grade 5		950		7,991		22,074		24,820		12,739		32,669		12,510		-		113,753
Grade 6		-		-		2,128		2,811		1,032		8,696		967		-		15,634
Grade 7		-		3,108		7,471		7,629		1,307		28,047		2,657		-		50,219
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	3,992	$	73,522	$	136,729	$	200,550	$	120,725	$	284,083	$	73,393	$	-	$	892,994
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	-	$	1
Commercial real estate - non-owner occupied
Grades 1-4	$	5,547	$	54,765	$	71,752	$	143,488	$	52,556	$	121,594	$	10,326	$	-	$	460,028
Grade 5		12,427		935		3,690		2,769		2,928		15,794		-		-		38,543
Grade 6		-		-		-		-		-		187		-		-		187
Grade 7		-		-		124		64		362		3,261		-		-		3,811
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	17,974	$	55,700	$	75,566	$	146,321	$	55,846	$	140,836	$	10,326	$	-	$	502,569
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multi-family
Grades 1-4	$	1,288	$	25,227	$	26,948	$	101,366	$	73,615	$	84,680	$	2,257	$	-	$	315,381
Grade 5		786		884		1,893		4,278		-		26		-		-		7,867
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		-		-		-		-
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	2,074	$	26,111	$	28,841	$	105,644	$	73,615	$	84,706	$	2,257	$	-	$	323,248
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and development
Grades 1-4	$	3,900	$	81,137	$	72,161	$	12,663	$	4,869	$	6,514	$	392	$	-	$	181,636
Grade 5		224		18,527		1,190		3,844		716		214		798		-		25,513
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		707		-		-		169		782		-		-		1,658
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	4,124	$	100,371	$	73,351	$	16,507	$	5,754	$	7,510	$	1,190	$	-	$	208,807
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential 1‑4 family
Grades 1-4	$	9,928	$	102,344	$	192,776	$	195,856	$	155,273	$	116,910	$	82,525	$	-	$	855,612
Grade 5		1,351		3,916		6,489		3,015		222		2,797		319		-		18,109
Grade 6		-		156		317		-		-		180		-		-		653
Grade 7		-		314		322		1,066		1,010		2,775		168		-		5,655
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	11,279	$	106,730	$	199,904	$	199,937	$	156,505	$	122,662	$	83,012	$	-	$	880,029
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	-	$	1
Consumer
Grades 1-4	$	9,851	$	18,017	$	11,363	$	5,868	$	4,089	$	2,286	$	593	$	-	$	52,067
Grade 5		-		-		-		-		-		-		-		-		-
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		19		-		-		19
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	9,851	$	18,017	$	11,363	$	5,868	$	4,089	$	2,305	$	593	$	-	$	52,086
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	4	$	-	$	-	$	4
Other
Grades 1-4	$	855	$	192	$	651	$	543	$	832	$	9,630	$	2,055	$	-	$	14,758
Grade 5		-		-		-		-		-		-		86		-		86
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		-		-		-		-
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	855	$	192	$	651	$	543	$	832	$	9,630	$	2,141	$	-	$	14,844
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	29	$	-	$	29

Total Loans	$	73,081	$	449,865	$	659,405	$	751,395	$	473,822	$	683,857	$	294,082	$	-	$	3,385,507
Total current-period gross charge-offs	$	-	$	-	$	-	$	15	$	-	$	8	$	29	$	-	$	52


	Amortized Cost Basis by Origination Year
As of December 31, 2023																Revolving
		2023		2022		2021		2020		2019		Prior		Revolving		to Term		Total
Commercial/industrial
Grades 1-4	$	59,526	$	133,469	$	62,894	$	54,552	$	10,380	$	20,575	$	78,439	$	-	$	419,835
Grade 5		6,127		5,367		11,641		4,208		1,180		3,039		21,420		-		52,982
Grade 6		671		93		61		206		-		-		627		-		1,658
Grade 7		365		271		5,756		2,351		30		1,687		3,563		-		14,023
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	66,689	$	139,200	$	80,352	$	61,317	$	11,590	$	25,301	$	104,049	$	-	$	488,498
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - owner occupied
Grades 1-4	$	55,239	$	105,187	$	167,124	$	108,680	$	47,115	$	178,586	$	33,220	$	-	$	695,151
Grade 5		7,586		24,734		24,890		12,955		11,168		26,179		21,519		-		129,031
Grade 6		-		1,161		1,694		110		867		6,552		699		-		11,083
Grade 7		3,143		9,988		10,061		2,313		14,775		15,777		2,655		-		58,712
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	65,968	$	141,070	$	203,769	$	124,058	$	73,925	$	227,094	$	58,093	$	-	$	893,977
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - non-owner occupied
Grades 1-4	$	54,774	$	72,336	$	127,450	$	53,341	$	45,898	$	84,129	$	9,870	$	-	$	447,798
Grade 5		944		4,819		2,872		3,516		97		10,081		-		-		22,329
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		64		366		2,722		550		-		-		3,702
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	55,718	$	77,155	$	130,386	$	57,223	$	48,717	$	94,760	$	9,870	$	-	$	473,829
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - multi-family
Grades 1-4	$	25,099	$	28,144	$	103,804	$	74,083	$	25,640	$	61,589	$	2,149	$	-	$	320,508
Grade 5		672		1,092		10,660		-		-		27		-		-		12,451
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		-		-		-		-
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	25,771	$	29,236	$	114,464	$	74,083	$	25,640	$	61,616	$	2,149	$	-	$	332,959
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and development
Grades 1-4	$	65,134	$	67,396	$	35,017	$	5,013	$	1,853	$	4,281	$	779	$	-	$	179,473
Grade 5		11,796		1,190		6,060		743		-		84		808		-		20,681
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		707		-		-		172		-		790		-		-		1,669
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	77,637	$	68,586	$	41,077	$	5,928	$	1,853	$	5,155	$	1,587	$	-	$	201,823
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential 1‑4 family
Grades 1-4	$	102,529	$	199,295	$	197,713	$	160,489	$	44,411	$	77,644	$	80,659	$	-	$	862,740
Grade 5		3,816		4,819		6,269		119		612		2,465		604		-		18,704
Grade 6		158		319		810		-		-		180		249		-		1,716
Grade 7		316		366		29		1,022		400		2,947		172		-		5,252
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	106,819	$	204,799	$	204,821	$	161,630	$	45,423	$	83,236	$	81,684	$	-	$	888,412
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer
Grades 1-4	$	23,711	$	12,497	$	6,570	$	4,498	$	1,194	$	1,326	$	925	$	-	$	50,721
Grade 5		-		-		-		-		-		-		-		-		-
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		20		-		-		20
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	23,711	$	12,497	$	6,570	$	4,498	$	1,194	$	1,346	$	925	$	-	$	50,741
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	4	$	-	$	4
Other
Grades 1-4	$	347	$	663	$	551	$	1,076	$	38	$	9,697	$	2,520	$	-	$	14,892
Grade 5		-		-		-		-		-		-		88		-		88
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		-		-		-		-
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	347	$	663	$	551	$	1,076	$	38	$	9,697	$	2,608	$	-	$	14,980
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	84	$	-	$	84

Total Loans	$	422,660	$	673,206	$	781,990	$	489,813	$	208,380	$	508,205	$	260,965	$	-	$	3,345,219
Total current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	88	$	-	$	88