XML 28 R19.htm IDEA: XBRL DOCUMENT v3.23.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Loans by Type as Percentage of Portfolio

Loans by type as a percentage of the portfolio were as follows:

 

June 30, 2023

 

 

December 31, 2022

 

 

 

 

 

(Dollars in thousands)

 Balance

 

%

 

 

 Balance

 

%

 

 

Percent Increase (Decrease)

Agricultural

$

40,684

 

 

3.22

%

 

 

64,159

 

 

5.39

%

 

 

(36.59

)

%

Commercial and Industrial

 

224,191

 

 

17.73

%

 

 

210,210

 

 

17.67

%

 

 

6.65

 

%

Commercial Real Estate

 

657,549

 

 

52.01

%

 

 

630,953

 

 

53.03

%

 

 

4.22

 

%

Consumer

 

38,614

 

 

3.05

%

 

 

39,808

 

 

3.35

%

 

 

(3.00

)

%

Construction Real Estate

 

16,734

 

 

1.32

%

 

 

14,736

 

 

1.24

%

 

 

13.56

 

%

Residential Real Estate

 

247,618

 

 

19.59

%

 

 

229,916

 

 

19.32

%

 

 

7.70

 

%

Loans to Other Financial Institutions

 

38,838

 

 

3.07

%

 

 

-

 

 

0.00

%

 

 

100.00

 

%

Gross Loans

$

1,264,228

 

 

 

 

$

1,189,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

14,582

 

 

1.15

%

 

 

7,619

 

 

0.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans

$

1,249,646

 

 

 

 

$

1,182,163

 

 

 

 

 

 

 

 
Allowance for Credit Losses and Balances in Loan Portfolio

Activity in the allowance for credit losses and balances in the loan portfolio were as follows:

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans to Other

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

and

 

 

 

 

 

Commercial

 

 

Construction

 

 

Residential

 

 

Financial

 

 

 

 

 

 

 

 

 

Agricultural

 

 

Industrial

 

 

Consumer

 

 

Real Estate

 

 

Real Estate

 

 

Real Estate

 

 

Institutions

 

 

Unallocated

 

 

Total

 

Allowance for Credit Losses Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

136

 

 

$

3,020

 

 

$

913

 

 

$

7,837

 

 

$

72

 

 

$

3,087

 

 

$

—

 

 

$

—

 

 

$

15,065

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

(131

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(131

)

Recoveries

 

 

—

 

 

 

2

 

 

 

59

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

63

 

Provision

 

 

(58

)

 

 

(126

)

 

 

44

 

 

 

(600

)

 

 

(2

)

 

 

287

 

 

 

40

 

 

 

—

 

 

 

(415

)

Ending balance

 

$

78

 

 

$

2,896

 

 

$

885

 

 

$

7,237

 

 

$

70

 

 

$

3,376

 

 

$

—

 

 

$

—

 

 

$

14,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses Six Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

144

 

 

$

1,361

 

 

$

310

 

 

$

4,822

 

 

$

63

 

 

$

906

 

 

$

—

 

 

$

13

 

 

$

7,619

 

Cumulative effect of change in accounting principle

 

 

14

 

 

 

1,587

 

 

 

541

 

 

 

3,006

 

 

 

20

 

 

 

2,010

 

 

 

—

 

 

 

(13

)

 

 

7,165

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

(271

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(271

)

Recoveries

 

 

—

 

 

 

29

 

 

 

129

 

 

 

13

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

176

 

Provision

 

 

(80

)

 

 

(81

)

 

 

176

 

 

 

(604

)

 

 

(13

)

 

 

455

 

 

 

40

 

 

 

—

 

 

 

(106

)

Ending balance

 

$

78

 

 

$

2,896

 

 

$

885

 

 

$

7,237

 

 

$

70

 

 

$

3,376

 

 

$

40

 

 

$

—

 

 

$

14,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for credit loss

 

$

1

 

 

$

34

 

 

$

—

 

 

$

1

 

 

$

—

 

 

$

36

 

 

$

—

 

 

$

—

 

 

$

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for credit loss

 

$

77

 

 

$

2,862

 

 

$

885

 

 

$

7,236

 

 

$

70

 

 

$

3,340

 

 

$

40

 

 

$

—

 

 

$

14,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for credit loss

 

$

17

 

 

$

318

 

 

$

—

 

 

$

32

 

 

$

—

 

 

$

1,756

 

 

$

—

 

 

 

 

 

$

2,123

 

Collectively evaluated for credit loss

 

 

40,667

 

 

 

223,873

 

 

 

38,614

 

 

 

657,517

 

 

 

16,734

 

 

 

245,862

 

 

 

38,838

 

 

 

 

 

 

1,262,105

 

Ending balance

 

$

40,684

 

 

$

224,191

 

 

$

38,614

 

 

$

657,549

 

 

$

16,734

 

 

$

247,618

 

 

$

38,838

 

 

 

 

 

$

1,264,228

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

and

 

 

 

 

 

Commercial

 

 

Construction

 

 

Residential

 

 

 

 

 

 

 

 

Agricultural

 

 

Industrial

 

 

Consumer

 

 

Real Estate

 

 

Real Estate

 

 

Real Estate

 

 

Unallocated

 

 

Total

 

Allowance for Loan Losses Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

387

 

 

$

1,752

 

 

$

304

 

 

$

3,690

 

 

$

37

 

 

$

589

 

 

$

842

 

 

$

7,601

 

Charge-offs

 

-

 

 

 

(100

)

 

 

(144

)

 

 

—

 

 

 

-

 

 

 

—

 

 

 

-

 

 

 

(244

)

Recoveries

 

-

 

 

 

2

 

 

 

55

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

59

 

Provision

 

(255

)

 

 

(41

)

 

 

94

 

 

 

533

 

 

 

8

 

 

 

101

 

 

 

(440

)

 

 

—

 

Ending balance

$

132

 

 

$

1,613

 

 

$

309

 

 

$

4,224

 

 

$

45

 

 

$

691

 

 

$

402

 

 

$

7,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

448

 

 

$

1,454

 

 

$

290

 

 

$

3,705

 

 

$

110

 

 

$

671

 

 

$

1,010

 

 

$

7,688

 

Charge-offs

 

 

 

 

(131

)

 

 

(255

)

 

 

-

 

 

 

-

 

 

 

—

 

 

 

-

 

 

 

(386

)

Recoveries

 

 

 

 

4

 

 

 

106

 

 

 

2

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

114

 

Provision

 

(316

)

 

 

286

 

 

 

168

 

 

 

517

 

 

 

(65

)

 

 

18

 

 

 

(608

)

 

 

-

 

Ending balance

$

132

 

 

$

1,613

 

 

$

309

 

 

$

4,224

 

 

$

45

 

 

$

691

 

 

$

402

 

 

$

7,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

1

 

 

$

52

 

 

$

1

 

 

$

7

 

 

$

—

 

 

$

154

 

 

$

—

 

 

$

215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for impairment

$

131

 

 

$

1,561

 

 

$

308

 

 

$

4,217

 

 

$

45

 

 

$

537

 

 

$

402

 

 

$

7,201

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

and

 

 

 

 

 

Commercial

 

 

Construction

 

 

Residential

 

 

 

 

 

 

 

 

Agricultural

 

 

Industrial

 

 

Consumer

 

 

Real Estate

 

 

Real Estate

 

 

Real Estate

 

 

Unallocated

 

 

Total

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

2

 

 

$

14

 

 

$

1

 

 

$

5

 

 

$

—

 

 

$

131

 

 

$

—

 

 

$

153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively evaluated for impairment

$

142

 

 

$

1,347

 

 

$

309

 

 

$

4,817

 

 

$

63

 

 

$

775

 

 

$

13

 

 

$

7,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

23

 

 

$

177

 

 

$

7

 

 

$

165

 

 

$—

 

 

$

2,474

 

 

 

 

 

$

2,846

 

Collectively evaluated for impairment

 

64,136

 

 

 

206,074

 

 

 

39,793

 

 

 

622,131

 

 

 

14,736

 

 

 

225,792

 

 

 

 

 

 

1,172,662

 

Acquired with deteriorated credit quality

—

 

 

 

3,959

 

 

 

8

 

 

 

8,657

 

 

—

 

 

 

1,650

 

 

 

 

 

 

14,274

 

Ending balance

$

64,159

 

 

$

210,210

 

 

$

39,808

 

 

$

630,953

 

 

$

14,736

 

 

$

229,916

 

 

 

 

 

$

1,189,782

 
Schedule of Amortized Cost Basis of Loans

The following table reflects the amortized cost basis of loans as of June 30, 2023 based on year of origination (dollars in thousands):

 

Commercial:

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Term Loans Total

 

 

Revolving Loans

 

 

Grand Total

 

 Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Pass

$

1,168

 

 

$

4,940

 

 

$

3,197

 

 

$

1,827

 

 

$

7,427

 

 

$

17,414

 

 

$

35,973

 

 

$

4,455

 

 

$

40,428

 

 Special mention

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

182

 

 

 

74

 

 

 

256

 

 

 

-

 

 

 

256

 

 Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Doubtful

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Total

$

1,168

 

 

$

4,940

 

 

$

3,197

 

 

$

1,827

 

 

$

7,609

 

 

$

17,488

 

 

$

36,229

 

 

$

4,455

 

 

$

40,684

 

Current year-to-date gross write-offs

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Pass

$

19,124

 

 

$

45,260

 

 

$

26,555

 

 

$

12,437

 

 

$

14,795

 

 

$

14,162

 

 

$

132,333

 

 

$

91,514

 

 

$

223,847

 

 Special mention

 

-

 

 

 

-

 

 

 

34

 

 

 

113

 

 

 

87

 

 

 

97

 

 

 

331

 

 

 

9

 

 

 

340

 

 Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4

 

 

 

4

 

 

 

-

 

 

 

4

 

 Doubtful

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Total

$

19,124

 

 

$

45,260

 

 

$

26,589

 

 

$

12,550

 

 

$

14,882

 

 

$

14,263

 

 

$

132,668

 

 

$

91,523

 

 

$

224,191

 

Current year-to-date gross write-offs

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Pass

$

29,461

 

 

$

137,786

 

 

$

110,926

 

 

$

74,413

 

 

$

46,365

 

 

$

150,104

 

 

$

549,055

 

 

$

107,383

 

 

$

656,438

 

 Special mention

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

586

 

 

 

586

 

 

 

-

 

 

 

586

 

 Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

525

 

 

 

525

 

 

 

-

 

 

 

525

 

 Doubtful

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Total

$

29,461

 

 

$

137,786

 

 

$

110,926

 

 

$

74,413

 

 

$

46,365

 

 

$

151,215

 

 

$

550,166

 

 

$

107,383

 

 

$

657,549

 

 

 Retail:

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Term Loans Total

 

 

Revolving Loans

 

 

Grand Total

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

5,938

 

 

$

16,228

 

 

$

8,648

 

 

$

3,820

 

 

$

1,764

 

 

$

1,682

 

 

$

38,080

 

 

$

534

 

 

$

38,614

 

Nonperforming

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonaccrual

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

$

5,938

 

 

$

16,228

 

 

$

8,648

 

 

$

3,820

 

 

$

1,764

 

 

$

1,682

 

 

$

38,080

 

 

$

534

 

 

$

38,614

 

Current year-to-date gross write-offs

$

-

 

 

$

12

 

 

$

9

 

 

$

28

 

 

$

-

 

 

$

1

 

 

$

50

 

 

$

-

 

 

$

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

1,313

 

 

$

1,770

 

 

$

565

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

3,648

 

 

$

13,086

 

 

$

16,734

 

Nonperforming

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonaccrual

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

$

1,313

 

 

$

1,770

 

 

$

565

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

3,648

 

 

$

13,086

 

 

$

16,734

 

Current year-to-date gross write-offs

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

25,538

 

 

$

67,935

 

 

$

30,068

 

 

$

17,783

 

 

$

13,699

 

 

$

43,496

 

 

$

198,519

 

 

$

47,517

 

 

$

246,036

 

Nonperforming

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonaccrual

 

-

 

 

 

436

 

 

 

347

 

 

 

-

 

 

 

-

 

 

 

799

 

 

 

1,582

 

 

 

-

 

 

 

1,582

 

Total

$

25,538

 

 

$

68,371

 

 

$

30,415

 

 

$

17,783

 

 

$

13,699

 

 

$

44,295

 

 

$

200,101

 

 

$

47,517

 

 

$

247,618

 
Schedule of Information Regarding Credit Exposure

Corporate Credit Exposure - Credit risk profile by credit worthiness category

 

(Dollars in thousands)

Agricultural

 

 

Commercial and Industrial

 

 

Commercial Real Estate

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

2022

 

 

2022

 

 

2022

 

Pass

$

63,867

 

 

$

209,700

 

 

$

624,555

 

Special Mention

 

289

 

 

 

400

 

 

 

2,048

 

Substandard

 

3

 

 

 

110

 

 

 

4,350

 

Doubtful

 

—

 

 

 

-

 

 

 

—

 

Loss

 

-

 

 

 

-

 

 

 

-

 

$

64,159

 

 

$

210,210

 

 

$

630,953

 

 

Consumer Credit Exposure - Credit risk profile based on payment activity

 

(Dollars in thousands)

Consumer

 

 

Construction Real Estate

 

 

Residential Real Estate

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

2022

 

 

2022

 

 

2022

 

Performing

$

39,808

 

 

$

14,736

 

 

$

228,653

 

Nonperforming

 

—

 

 

 

—

 

 

 

—

 

Nonaccrual

 

—

 

 

 

—

 

 

 

1,263

 

 

$

39,808

 

 

$

14,736

 

 

$

229,916

 
Summary of Troubled Loan Modification (TLMs)

The following table provides information on loans that were considered troubled loan modification ("TLMs") that were modified during the three and six months ended June 30, 2023

 

 

Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

Term Extension

 

 

 

 

 

 

% of Total

 

 

 

 

 

 

Class of

 

 

(Dollars in thousands)

Amortized

 

 

Financing

 

 

 

Cost Basis

 

 

Receivable

 

 

Commercial and industrial

$

67

 

 

 

0

%

 

Total

 

67

 

 

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

Term Extension

 

 

 

 

 

 

% of Total

 

 

 

 

 

 

Class of

 

 

(Dollars in thousands)

Amortized

 

 

Financing

 

 

 

Cost Basis

 

 

Receivable

 

 

Commercial and industrial

 

67

 

 

 

0

%

 

Residential real estate

$

129

 

 

 

0

%

 

Total

 

196

 

 

 

 

 

 

 

The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty and class of financing receivable.

 

 

Three Months Ended June 30, 2023

 

 

Term Extension

 

Commercial and industrial

Termed out line of Credit

 

 

 

 

Six Months Ended June 30, 2023

 

 

Term Extension

 

Commercial and industrial

Termed Out Line of Credit

 

Residential real estate

Provided twelve month payment plan to catch up past due amount through our standard program.

 

 

The following table presents the period-end amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty.

 

 

Three Months Ended June 30, 2023

 

(Dollars in thousands)

Term extension

 

 

 

 

Commercial and industrial

 

67

 

Total

$

67

 

 

 

Six Months Ended June 30, 2023

 

(Dollars in thousands)

Term extension

 

 

 

 

Commercial and industrial

 

67

 

Residential real estate

$

129

 

Total

$

196

 

 

The following table presents the period-end amortized cost basis of loans that have been modified in the past 12 months to borrowers experiencing financial difficulty by payment status and class of financing receivable.

 

 

Three Months Ended June 30, 2023

 

(Dollars in thousands)

Current

 

 

30-89 days

 

 

Greater than 90 days

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

67

 

 

 

—

 

 

 

—

 

 

 

67

 

Total

$

67

 

 

$

-

 

 

$

-

 

 

$

67

 

 

 

 

Six Months Ended June 30, 2023

 

(Dollars in thousands)

Current

 

 

30-89 days

 

 

Greater than 90 days

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

67

 

 

 

—

 

 

 

—

 

 

 

67

 

Residential real estate

 

—

 

 

 

—

 

 

 

129

 

 

 

129

 

Total

$

67

 

 

$

-

 

 

$

129

 

 

$

196

 

 

 
Summary of Trouble Debt Restructurings (TDRs)

The following table provides information on loans that were considered troubled debt restructurings ("TDRs") that were modified during the three and six months ended June 30, 2022.

 

 

 

Three Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2022

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

Outstanding

 

 

Outstanding

 

 

 

 

 

Outstanding

 

 

Outstanding

 

(Dollars in thousands)

Number of

 

 

Recorded

 

 

Recorded

 

 

Number of

 

 

Recorded

 

 

Recorded

 

 

Loans

 

 

Investment

 

 

Investment

 

 

Loans

 

 

Investment

 

 

Investment

 

Agricultural

 

—

 

 

$

—

 

 

$

—

 

 

 

1

 

 

$

258

 

 

$

258

 

Commercial and industrial

 

1

 

 

 

19

 

 

 

19

 

 

 

1

 

 

 

19

 

 

 

19

 

Total

 

1

 

 

$

19

 

 

$

19

 

 

 

2

 

 

$

277

 

 

$

277

 
Nonaccrual Loans by Loan Category

Nonaccrual loans by loan category as of June 30, 2023 were as follows:

 

(Dollars in thousands)

Nonaccrual loans with no ACL

 

 

Total nonaccrual loans

 

 

Interest income recognized during the period on nonaccrual loans

 

 

Interest income recognized during the period on nonaccrual loans

 

 

Residential real estate

$

676

 

 

$

1,581

 

 

$

—

 

 

$

—

 

 

Total nonaccrual loans

$

676

 

 

$

1,581

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans by loan category as of December 31, 2022 were as follows:

 

(Dollars in thousands)

Total nonaccrual loans

 

Residential real estate

$

1,263

 

 

$

1,263

 
Schedule of Loans for Impairment and Interest Recognized on Impaired Loans

The following schedule provides information regarding average balances of loans evaluated for impairment and interest recognized on
impaired loans for the three months and six months ended December 31, 2022 and June 30, 2022:

 

 

 

 

 

Unpaid

 

 

 

 

 

(Dollars in thousands)

Recorded

 

 

Principal

 

 

Related

 

 

 

Investment

 

 

Balance

 

 

Allowance

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

Agricultural

$

—

 

 

$

—

 

 

$

—

 

 

Commercial and industrial

 

—

 

 

 

—

 

 

 

—

 

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

Construction real estate

 

—

 

 

 

—

 

 

 

—

 

 

Commercial real estate

 

—

 

 

 

—

 

 

 

—

 

 

Residential real estate

 

550

 

 

 

595

 

 

 

—

 

 

Subtotal

 

550

 

 

 

595

 

 

 

—

 

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

Agricultural

 

23

 

 

 

27

 

 

 

2

 

 

Commercial and industrial

 

177

 

 

 

177

 

 

 

14

 

 

Consumer

 

7

 

 

 

7

 

 

 

1

 

 

Construction real estate

 

—

 

 

 

—

 

 

 

—

 

 

Commercial real estate

 

165

 

 

 

165

 

 

 

5

 

 

Residential real estate

 

1,924

 

 

 

1,954

 

 

 

131

 

 

Subtotal

 

2,296

 

 

 

2,330

 

 

 

153

 

 

Total

 

 

 

 

 

 

 

 

 

Agricultural

 

23

 

 

 

27

 

 

 

2

 

 

Commercial and industrial

 

177

 

 

 

177

 

 

 

14

 

 

Consumer

 

7

 

 

 

7

 

 

 

1

 

 

Construction real estate

 

—

 

 

 

—

 

 

 

—

 

 

Commercial real estate

 

165

 

 

 

165

 

 

 

5

 

 

Residential real estate

 

2,474

 

 

 

2,549

 

 

 

131

 

 

Total

$

2,846

 

 

$

2,925

 

 

$

153

 

 

 

 

 

 

 

Unpaid

 

 

 

 

 

(Dollars in thousands)

Recorded

 

 

Principal

 

 

Related

 

 

 

Investment

 

 

Balance

 

 

Allowance

 

 

June 30, 2022

 

 

 

 

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

Agricultural

$

314

 

 

$

428

 

 

$

—

 

 

Commercial and industrial

 

—

 

 

 

—

 

 

 

—

 

 

Consumer

 

—

 

 

 

—

 

 

 

—

 

 

Construction real estate

 

—

 

 

 

—

 

 

 

—

 

 

Commercial real estate

 

—

 

 

 

—

 

 

 

—

 

 

Residential real estate

 

439

 

 

 

469

 

 

 

—

 

 

Subtotal

 

753

 

 

 

897

 

 

 

—

 

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

Agricultural

 

6

 

 

 

7

 

 

 

1

 

 

Commercial and industrial

 

159

 

 

 

190

 

 

 

52

 

 

Consumer

 

7

 

 

 

8

 

 

 

1

 

 

Construction real estate

 

149

 

 

 

149

 

 

 

—

 

 

Commercial real estate

 

—

 

 

 

—

 

 

 

7

 

 

Residential real estate

 

1,613

 

 

 

1,644

 

 

 

154

 

 

Subtotal

 

1,934

 

 

 

1,998

 

 

 

215

 

 

Total

 

 

 

 

 

 

 

 

 

Agricultural

 

320

 

 

 

435

 

 

 

1

 

 

Commercial and industrial

 

159

 

 

 

190

 

 

 

52

 

 

Consumer

 

7

 

 

 

8

 

 

 

1

 

 

Construction real estate

 

149

 

 

 

149

 

 

 

—

 

 

Commercial real estate

 

—

 

 

 

—

 

 

 

7

 

 

Residential real estate

 

2,052

 

 

 

2,113

 

 

 

154

 

 

Total

$

2,687

 

 

$

2,895

 

 

$

215

 

 

 

 

 

Average

 

 

Interest

 

(Dollars in thousands)

Recorded

 

 

Income

 

 

Investment

 

 

Recognized

 

Three Months Ended June 30, 2022

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

Agricultural

$

314

 

 

$

—

 

Commercial and industrial

 

46

 

 

 

—

 

Consumer

 

—

 

 

 

—

 

Construction real estate

 

—

 

 

 

—

 

Commercial real estate

 

—

 

 

 

—

 

Residential real estate

 

220

 

 

 

—

 

Subtotal

 

580

 

 

 

—

 

With an allowance recorded

 

 

 

 

 

Agricultural

 

1,117

 

 

 

-

 

Commercial and industrial

 

211

 

 

 

1

 

Consumer

 

20

 

 

 

—

 

Construction real estate

 

—

 

 

 

—

 

Commercial real estate

 

153

 

 

 

2

 

Residential real estate

 

1,733

 

 

 

12

 

Subtotal

 

3,234

 

 

 

15

 

Total

 

 

 

 

 

Agricultural

 

1,431

 

 

 

—

 

Commercial and industrial

 

257

 

 

 

1

 

Consumer

 

20

 

 

 

—

 

Construction real estate

 

—

 

 

 

—

 

Commercial real estate

 

153

 

 

 

2

 

Residential real estate

 

1,953

 

 

 

12

 

Total

$

3,814

 

 

$

15

 

 

 

Average

 

 

Interest

 

(Dollars in thousands)

Recorded

 

 

Income

 

 

Investment

 

 

Recognized

 

Six Months Ended June 30, 2022

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

Agricultural

$

314

 

 

$

—

 

Commercial and industrial

 

31

 

 

 

—

 

Consumer

 

—

 

 

 

—

 

Construction real estate

 

—

 

 

 

—

 

Commercial real estate

 

31

 

 

 

—

 

Residential real estate

 

201

 

 

 

—

 

Subtotal

 

577

 

 

 

—

 

With an allowance recorded

 

 

 

 

 

Agricultural

 

1,512

 

 

 

—

 

Commercial and industrial

 

254

 

 

 

2

 

Consumer

 

18

 

 

 

—

 

Construction real estate

 

—

 

 

 

—

 

Commercial real estate

 

162

 

 

 

5

 

Residential real estate

 

1,831

 

 

 

29

 

Subtotal

 

3,777

 

 

 

36

 

Total

 

 

 

 

 

Agricultural

 

1,826

 

 

 

—

 

Commercial and industrial

 

285

 

 

 

2

 

Consumer

 

18

 

 

 

—

 

Construction real estate

 

—

 

 

 

—

 

Commercial real estate

 

193

 

 

 

5

 

Residential real estate

 

2,032

 

 

 

29

 

Total

$

4,354

 

 

$

36

 

 

 
Aging Analysis of Loans by Loan Category

An aging analysis of loans by loan category follows:

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

Loans

 

 

Loans

 

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

90 Days

 

 

Past Due

 

 

Past Due

 

 

Greater

 

 

 

 

 

 

 

 

 

 

 

Past

 

(Dollars in thousands)

30 to 59

 

 

60 to 89

 

 

Than 90

 

 

 

 

 

Loans Not

 

 

Total

 

 

Due and

 

 

Days (1)

 

 

Days (1)

 

 

Days (1)

 

 

Total (1)

 

 

Past Due

 

 

Loans

 

 

Accruing

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

40,684

 

 

$

40,684

 

 

$

—

 

Commercial and industrial

 

61

 

 

 

132

 

 

 

—

 

 

 

193

 

 

 

223,998

 

 

 

224,191

 

 

 

—

 

Consumer

 

5

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

38,609

 

 

 

38,614

 

 

 

—

 

Commercial real estate

 

1,059

 

 

 

—

 

 

 

—

 

 

 

1,059

 

 

 

656,490

 

 

 

657,549

 

 

 

—

 

Construction real estate

 

—

 

 

 

128

 

 

 

—

 

 

 

128

 

 

 

16,606

 

 

 

16,734

 

 

 

—

 

Residential real estate

 

224

 

 

 

653

 

 

 

560

 

 

 

1,437

 

 

 

246,181

 

 

 

247,618

 

 

 

 

Loans to Other Financial Institutions

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

38,838

 

 

 

38,838

 

 

 

 

 

$

1,349

 

 

$

913

 

 

$

560

 

 

$

2,822

 

 

$

1,261,406

 

 

$

1,264,228

 

 

$

—

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

64,159

 

 

$

64,159

 

 

$

—

 

Commercial and industrial

 

—

 

 

 

171

 

 

 

—

 

 

 

171

 

 

 

210,039

 

 

 

210,210

 

 

 

—

 

Consumer

 

39

 

 

 

7

 

 

 

—

 

 

 

46

 

 

 

39,762

 

 

 

39,808

 

 

 

—

 

Commercial real estate

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

630,953

 

 

 

630,953

 

 

 

—

 

Construction real estate

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,736

 

 

 

14,736

 

 

 

—

 

Residential real estate

 

682

 

 

 

—

 

 

 

842

 

 

 

1,524

 

 

 

228,392

 

 

 

229,916

 

 

 

—

 

 

$

721

 

 

$

178

 

 

$

842

 

 

$

1,741

 

 

$

1,188,041

 

 

$

1,189,782

 

 

$

—

 

 

(1) Includes nonaccrual loans.
Acquired Loan Portfolio and Acquisition Fair Value Adjustments

The table below presents a roll forward of the accretable yield on the County Bank Corp. acquired loan portfolio for the years ended December 31, 2022 and the six months ended June 30, 2023 (dollars in thousands):

 

(Dollars in thousands)

 

Purchased with credit deterioration

 

 

Purchased without credit deterioration

 

 

Acquired

 

 

 

 

 

 

 

 

 

Total

 

Balance January 1, 2022

 

$

288

 

 

$

1,176

 

 

$

1,464

 

Transfer from non-accretable to accretable yield

 

 

2,192

 

 

 

—

 

 

 

2,192

 

Accretion January 1, 2022 through December 31, 2022

 

 

(553

)

 

 

(98

)

 

 

(651

)

Balance January 1, 2023

 

 

1,927

 

 

 

1,078

 

 

 

3,005

 

Transfer from non-accretable to accretable yield

 

 

 

 

 

 

 

 

-

 

Accretion January 1, 2023 through June 30, 2023

 

 

(269

)

 

 

(270

)

 

 

(539

)

Balance, June 30, 2023

 

$

1,658

 

 

$

808

 

 

$

2,466

 

 

The table below presents a roll forward of the accretable yield on Community Shores Bank Corporation acquired loan portfolio for the years ended December 31, 2022 and the six months ended June 30, 2023 (dollars in thousands):

 

 

 

Purchased with credit deterioration

 

 

Purchased without credit deterioration

 

 

Acquired

 

 

 

 

 

 

 

 

 

Total

 

Balance January 1, 2022

 

$

522

 

 

$

197

 

 

$

719

 

Transfer from non-accretable to accretable yield

 

 

1,086

 

 

 

—

 

 

 

1,086

 

Accretion January 1, 2022 through December 31, 2022

 

 

(993

)

 

 

(197

)

 

 

(1,190

)

Balance January 1, 2023

 

 

615

 

 

 

-

 

 

 

615

 

Transfer from non-accretable to accretable yield

 

 

622

 

 

 

 

 

 

622

 

Accretion January 1, 2023 through June 30, 2023

 

 

(376

)

 

 

 

 

 

(376

)

Balance, June 30, 2023

 

$

861

 

 

$

-

 

 

$

861