XML 43 R33.htm IDEA: XBRL DOCUMENT v3.24.0.1
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Loans by Type as Percentage of Portfolio

The Bank’s loan portfolio as of December 31 was as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

2023

 

 

2022

 

Agricultural

 

$

49,210

 

 

$

64,159

 

Commercial and industrial

 

 

229,915

 

 

 

210,210

 

Consumer

 

 

36,541

 

 

 

39,808

 

Real estate - commercial

 

 

786,921

 

 

 

630,953

 

Real estate - construction

 

 

20,936

 

 

 

14,736

 

Real estate - residential

 

 

267,730

 

 

 

229,916

 

Loans to other financial institutions

 

 

19,400

 

 

 

-

 

Total Loans

 

$

1,410,653

 

 

$

1,189,782

 

Allowance for credit losses

 

 

(15,685

)

 

 

(7,619

)

Loans, net

 

$

1,394,968

 

 

$

1,182,163

 
Acquired Portfolio and The Acquisition Fair Value Adjustments

The table below details the outstanding balances of the County Bank Corp. acquired portfolio and the acquisition fair value adjustments at acquisition date:

 

(Dollars in thousands)

 

Acquired

 

 

Acquired

 

 

Acquired

 

 

 

Impaired

 

 

Non-impaired

 

 

Total

 

Loans acquired - contractual payments

 

$

7,729

 

 

$

387,394

 

 

$

395,123

 

Nonaccretable difference

 

 

(2,928

)

 

 

-

 

 

 

(2,928

)

Expected cash flows

 

 

4,801

 

 

 

387,394

 

 

 

392,195

 

Accretable yield

 

 

(185

)

 

 

(1,894

)

 

 

(2,079

)

Carrying balance at acquisition date

 

$

4,616

 

 

$

385,500

 

 

$

390,116

 

 

The table below presents a roll-forward of the accretable yield on County Bank Corp. acquired loans for the year ended December 31, 2022:

 

(Dollars in thousands)

 

Acquired

 

 

Acquired

 

 

Acquired

 

 

 

Impaired

 

 

Non-impaired

 

 

Total

 

Balance, January 1, 2019

 

$

-

 

 

$

-

 

 

$

-

 

Merger with County Bank Corp. on October 1, 2019

 

 

185

 

 

 

1,894

 

 

 

2,079

 

Accretion October 1, 2019 through December 31, 2019

 

 

-

 

 

(75

)

 

(75

)

Balance January 1, 2020

 

 

185

 

 

 

1,819

 

 

 

2,004

 

Accretion January 1, 2020 through December 31, 2020

 

 

(50

)

 

(295

)

 

(345

)

Balance January 1, 2021

 

 

135

 

 

 

1,524

 

 

 

1,659

 

Accretion January 1, 2021 through December 31, 2021

 

 

(247

)

 

 

(348

)

 

 

(595

)

Transfer from non-accretable to accretable yield

 

 

400

 

 

-

 

 

400

 

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 December 31, 2022

 

$

1,927

 

 

$

1,078

 

 

$

3,005

 

 

The table below details the outstanding balances of the Community Shores Bank Corporation acquired loan portfolio and the acquisition fair value adjustments at acquisition date:

 

(Dollars in thousands)

 

Acquired

 

 

Acquired

 

 

Acquired

 

 

 

Impaired

 

 

Non-impaired

 

 

Total

 

Loans acquired - contractual payments

 

$

20,491

 

 

$

158,495

 

 

$

178,986

 

Nonaccretable difference

 

 

(2,719

)

 

 

-

 

 

 

(2,719

)

Expected cash flows

 

 

17,772

 

 

 

158,495

 

 

 

176,267

 

Accretable yield

 

 

(869

)

 

 

(596

)

 

 

(1,465

)

Carrying balance at acquisition date

 

$

16,903

 

 

$

157,899

 

 

$

174,802

 

 

The table below presents a roll-forward of the accretable yield on Community Shores Bank Corporation acquired loans for the year ended December 31, 2022:

 

(Dollars in thousands)

 

Acquired

 

 

Acquired

 

 

Acquired

 

 

 

Impaired

 

 

Non-impaired

 

 

Total

 

Balance January 1, 2020

 

$

-

 

 

$

-

 

 

$

-

 

Merger with Community Shores Bank Corporation on July 1, 2020

 

 

869

 

 

 

596

 

 

 

1,465

 

Accretion July 1, 2020 through December 31, 2020

 

 

(26

)

 

 

(141

)

 

 

(167

)

Balance, January 1, 2021

 

 

843

 

 

 

455

 

 

 

1,298

 

Accretion January 1, 2021 through December 31, 2021

 

 

(321

)

 

 

(258

)

 

 

(579

)

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 December 31, 2022

 

$

615

 

 

$

-

 

 

$

615

 
Allowance for Credit Losses and Balances in Loan Portfolio

Activity in the allowance for credit losses and balances in the loan portfolio was 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 Year Ended December 31, 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

 

 

-

 

 

 

(158

)

 

 

(554

)

 

 

-

 

 

 

-

 

 

 

(27

)

 

 

-

 

 

 

-

 

 

 

(739

)

Recoveries

 

 

-

 

 

 

66

 

 

 

283

 

 

 

13

 

 

 

-

 

 

 

13

 

 

 

-

 

 

 

-

 

 

 

375

 

Provision

 

 

(64

)

 

 

(640

)

 

 

243

 

 

 

979

 

 

 

(25

)

 

 

742

 

 

 

30

 

 

 

-

 

 

 

1,265

 

Ending balance

 

$

94

 

 

$

2,216

 

 

$

823

 

 

$

8,820

 

 

$

58

 

 

$

3,644

 

 

$

30

 

 

$

-

 

 

$

15,685

 

Individually evaluated loan reserves

 

$

2

 

 

$

6

 

 

$

-

 

 

$

1

 

 

$

-

 

 

$

51

 

 

$

-

 

 

$

-

 

 

$

60

 

Collectively evaluated loan reserves

 

$

92

 

 

$

2,210

 

 

$

823

 

 

$

8,819

 

 

$

58

 

 

$

3,593

 

 

$

30

 

 

$

-

 

 

$

15,625

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

$

54

 

 

$

136

 

 

$

2

 

 

$

29

 

 

$

-

 

 

$

1,858

 

 

$

-

 

 

 

 

 

$

2,079

 

Collectively evaluated loans

 

 

49,156

 

 

 

229,779

 

 

 

36,539

 

 

 

786,892

 

 

 

20,936

 

 

 

265,872

 

 

 

19,400

 

 

 

 

 

 

1,408,574

 

Ending balance

 

$

49,210

 

 

$

229,915

 

 

$

36,541

 

 

$

786,921

 

 

$

20,936

 

 

$

267,730

 

 

$

19,400

 

 

 

 

 

$

1,410,653

 

 

 

 

 

 

 

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 Loan Losses Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

448

 

 

$

1,454

 

 

$

290

 

 

$

3,705

 

 

$

110

 

 

$

671

 

 

$

-

 

 

$

1,010

 

 

$

7,688

 

Charge-offs

 

 

-

 

 

 

(177

)

 

 

(496

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(673

)

Recoveries

 

 

-

 

 

 

143

 

 

 

206

 

 

 

3

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

354

 

Provision

 

 

(304

)

 

 

(59

)

 

 

310

 

 

 

1,114

 

 

 

(47

)

 

 

233

 

 

 

-

 

 

 

(997

)

 

 

250

 

Ending balance

 

$

144

 

 

$

1,361

 

 

$

310

 

 

$

4,822

 

 

$

63

 

 

$

906

 

 

$

-

 

 

$

13

 

 

$

7,619

 

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

 
Summary of Amortized Cost Basis of Loans

The following table reflects the amortized cost basis of loans as of December 31, 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

$

5,015

 

 

$

4,088

 

 

$

3,078

 

 

$

1,788

 

 

$

7,028

 

 

$

18,476

 

 

$

39,473

 

 

$

9,507

 

 

$

48,980

 

 Special mention

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

176

 

 

 

54

 

 

 

230

 

 

 

-

 

 

 

230

 

 Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Doubtful

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Total

$

5,015

 

 

$

4,088

 

 

$

3,078

 

 

$

1,788

 

 

$

7,204

 

 

$

18,530

 

 

$

39,703

 

 

$

9,507

 

 

$

49,210

 

Current year-to-date gross write-offs

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Pass

$

23,600

 

 

$

45,489

 

 

$

23,462

 

 

$

10,502

 

 

$

9,214

 

 

$

11,882

 

 

$

124,149

 

 

$

105,559

 

 

$

229,708

 

 Special mention

 

-

 

 

 

-

 

 

 

28

 

 

 

35

 

 

 

73

 

 

 

64

 

 

 

200

 

 

 

3

 

 

 

203

 

 Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4

 

 

 

4

 

 

 

-

 

 

 

4

 

 Doubtful

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Total

$

23,600

 

 

$

45,489

 

 

$

23,490

 

 

$

10,537

 

 

$

9,287

 

 

$

11,950

 

 

$

124,353

 

 

$

105,562

 

 

$

229,915

 

Current year-to-date gross write-offs

$

-

 

 

$

55

 

 

$

30

 

 

$

71

 

 

$

-

 

 

$

2

 

 

$

158

 

 

$

-

 

 

$

158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Pass

$

149,181

 

 

$

134,289

 

 

$

107,033

 

 

$

71,754

 

 

$

43,846

 

 

$

136,361

 

 

$

642,464

 

 

$

143,120

 

 

$

785,584

 

 Special mention

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,337

 

 

 

1,337

 

 

 

-

 

 

 

1,337

 

 Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Doubtful

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Total

$

149,181

 

 

$

134,289

 

 

$

107,033

 

 

$

71,754

 

 

$

43,846

 

 

$

137,698

 

 

$

643,801

 

 

$

143,120

 

 

$

786,921

 

Current year-to-date gross write-offs

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total Business Loans

$

177,796

 

 

$

183,866

 

 

$

133,601

 

 

$

84,079

 

 

$

60,337

 

 

$

168,178

 

 

$

807,857

 

 

$

258,189

 

 

$

1,066,046

 

 

 

 

 

 

 

 

 

 Retail:

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Term Loans Total

 

 

Revolving Loans

 

 

Grand Total

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

9,775

 

 

$

13,876

 

 

$

6,771

 

 

$

2,849

 

 

$

1,260

 

 

$

1,202

 

 

$

35,733

 

 

$

808

 

 

$

36,541

 

Nonperforming

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonaccrual

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

$

9,775

 

 

$

13,876

 

 

$

6,771

 

 

$

2,849

 

 

$

1,260

 

 

$

1,202

 

 

$

35,733

 

 

$

808

 

 

$

36,541

 

Current year-to-date gross write-offs

$

8

 

 

$

24

 

 

$

11

 

 

$

28

 

 

$

-

 

 

$

1

 

 

$

72

 

 

$

-

 

 

$

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

2,507

 

 

$

2,719

 

 

$

552

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

5,778

 

 

$

15,158

 

 

$

20,936

 

Nonperforming

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonaccrual

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

$

2,507

 

 

$

2,719

 

 

$

552

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

5,778

 

 

$

15,158

 

 

$

20,936

 

Current year-to-date gross write-offs

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

54,231

 

 

$

64,768

 

 

$

28,301

 

 

$

16,391

 

 

$

12,556

 

 

$

40,270

 

 

$

216,517

 

 

$

49,491

 

 

$

266,008

 

Nonperforming

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonaccrual

 

-

 

 

 

380

 

 

 

826

 

 

 

-

 

 

 

-

 

 

 

486

 

 

 

1,692

 

 

 

30

 

 

 

1,722

 

Total

$

54,231

 

 

$

65,148

 

 

$

29,127

 

 

$

16,391

 

 

$

12,556

 

 

$

40,756

 

 

$

218,209

 

 

$

49,521

 

 

$

267,730

 

Current year-to-date gross write-offs

$

-

 

 

$

26

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1

 

 

$

27

 

 

$

-

 

 

$

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans to Other Financial Institutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

19,400

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

19,400

 

 

$

-

 

 

$

19,400

 

Nonperforming

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonaccrual

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

$

19,400

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

19,400

 

 

$

-

 

 

$

19,400

 

Current year-to-date gross write-offs

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Consumer Loans

$

85,913

 

 

$

81,743

 

 

$

36,450

 

 

$

19,240

 

 

$

13,816

 

 

$

41,958

 

 

$

279,120

 

 

$

65,487

 

 

$

344,607

 
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

 
Amortized Cost Basis Loans Modified To Borrowers Experiencing On Financing Receivable

The following table presents the amortized cost basis as of December 31, 2023 of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the reporting period.

 

For the period ended:

December 31, 2023

 

 

 

 

 

 

 

 

 

 

Term Extension

 

 

 

 

 

 

% of Total

 

 

 

 

 

 

Class of

 

 

(Dollars in thousands)

Amortized

 

 

Financing

 

 

 

Cost Basis

 

 

Receivable

 

 

Commercial and industrial

$

60

 

 

 

0

%

 

Residential real estate

 

129

 

 

 

0

%

 

Total

$

189

 

 

 

 

 

 

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

 

For the period ended:

December 31, 2023

 

 

Term Extension

 

Commercial and industrial

Termed out line of credit and termed out draw note.

 

Residential real estate

Provided with new twelve month payment plan to catch up on past due balance.

 

 

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.

 

For the period ended:

December 31, 2023

 

(Dollars in thousands)

Term extension

 

 

 

 

Commercial and industrial

$

60

 

Residential real estate

 

129

 

Total

$

189

 

 

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.

 

For the period ended:

December 31, 2023

 

(Dollars in thousands)

Current

 

 

30-89 days

 

 

Greater than 90 days

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

60

 

 

$

-

 

 

$

-

 

 

$

60

 

Residential real estate

 

-

 

 

 

-

 

 

 

129

 

 

 

129

 

Total

$

60

 

 

$

-

 

 

$

129

 

 

$

189

 
Summary of Trouble Debt Restructurings (TDRs)

The following schedule provides information on loans that were considered troubled debt restructurings ("TDRs") that were modified during the years ended December 31, 2022:

 

 

Year Ended December 31, 2022

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

Outstanding

 

 

Outstanding

 

(Dollars in thousands)

Number of

 

 

Recorded

 

 

Recorded

 

 

Loans

 

 

Investment

 

 

Investment

 

Agricultural

 

-

 

 

$

-

 

 

$

-

 

Commercial and Industrial

 

1

 

 

 

15

 

 

 

15

 

Commercial Real Estate

 

-

 

 

 

-

 

 

 

-

 

Total

 

1

 

 

$

15

 

 

$

15

 
Schedule of Loans for Impairment and Interest Recognized on Impaired Loans

Impaired loans by loan category as of December 31 were as follows:

 

 

 

 

 

Unpaid

 

 

 

 

 

Average

 

 

Interest

 

(Dollars in thousands)

Recorded

 

 

Principal

 

 

Related

 

 

Recorded

 

 

Income

 

 

Investment

 

 

Balance

 

 

Allowance

 

 

Investment

 

 

Recognized

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

$

-

 

 

$

-

 

 

$

-

 

 

$

250

 

 

$

-

 

Commercial and industrial

 

-

 

 

 

-

 

 

 

-

 

 

 

18

 

 

 

-

 

Consumer

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Construction real estate

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commercial real estate

 

-

 

 

 

-

 

 

 

-

 

 

 

19

 

 

 

-

 

Residential real estate

 

550

 

 

 

595

 

 

 

-

 

 

 

231

 

 

 

1

 

Subtotal

 

550

 

 

 

595

 

 

 

-

 

 

 

518

 

 

 

1

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

 

23

 

 

 

27

 

 

 

2

 

 

 

913

 

 

 

2

 

Commercial and industrial

 

177

 

 

 

177

 

 

 

14

 

 

 

209

 

 

 

13

 

Consumer

 

7

 

 

 

7

 

 

 

1

 

 

 

14

 

 

 

1

 

Construction real estate

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commercial real estate

 

165

 

 

 

165

 

 

 

5

 

 

 

158

 

 

 

13

 

Residential real estate

 

1,924

 

 

 

1,954

 

 

 

131

 

 

 

1,897

 

 

 

93

 

Subtotal

 

2,296

 

 

 

2,330

 

 

 

153

 

 

 

3,191

 

 

 

122

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

 

23

 

 

 

27

 

 

 

2

 

 

 

1,163

 

 

 

2

 

Commercial and industrial

 

177

 

 

 

177

 

 

 

14

 

 

 

227

 

 

 

13

 

Consumer

 

7

 

 

 

7

 

 

 

1

 

 

 

14

 

 

 

1

 

Construction real estate

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commercial real estate

 

165

 

 

 

165

 

 

 

5

 

 

 

177

 

 

 

13

 

Residential real estate

 

2,474

 

 

 

2,549

 

 

 

131

 

 

 

2,128

 

 

 

94

 

Total

$

2,846

 

 

$

2,925

 

 

$

153

 

 

$

3,709

 

 

$

123

 
Aging Analysis of Loans by Loan Category

An aging analysis of loans by loan category as of December 31 follows:

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

Loans

 

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

Past Due

 

 

Past Due

 

 

Greater

 

 

 

 

 

 

 

 

 

 

 

90 Days 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

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

49,210

 

 

$

49,210

 

 

$

-

 

Commercial and industrial

 

-

 

 

 

-

 

 

 

1

 

 

 

1

 

 

 

229,914

 

 

 

229,915

 

 

 

-

 

Consumer

 

31

 

 

 

2

 

 

 

-

 

 

 

33

 

 

 

36,508

 

 

 

36,541

 

 

 

-

 

Commercial real estate

 

173

 

 

 

-

 

 

 

-

 

 

 

173

 

 

 

786,748

 

 

 

786,921

 

 

 

-

 

Construction real estate

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20,936

 

 

 

20,936

 

 

 

-

 

Residential real estate

 

755

 

 

 

549

 

 

 

870

 

 

 

2,174

 

 

 

265,556

 

 

 

267,730

 

 

 

-

 

Loans to other financial institutions

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

19,400

 

 

 

19,400

 

 

 

-

 

 

$

959

 

 

$

551

 

 

$

871

 

 

$

2,381

 

 

$

1,408,272

 

 

$

1,410,653

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

-

 

Loans to other financial institutions

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

721

 

 

$

178

 

 

$

842

 

 

$

1,741

 

 

$

1,188,041

 

 

$

1,189,782

 

 

$

-

 

 

(1)
Includes nonaccrual loans
Nonaccrual Loans by Loan Category

Nonaccrual loans by loan category as of December 31 as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

2023

 

 

2022

 

Commercial and industrial

$

1

 

 

$

-

 

Residential real estate

 

1,722

 

 

 

1,263

 

Total nonaccrual loans

$

1,723

 

 

$

1,263

 

 

(Dollars in thousands)

Nonaccrual loans with no ACL

 

 

Total nonaccrual loans

 

 

Interest income recognized during the period on nonaccrual loans

 

Commercial and industrial

$

-

 

 

$

1

 

 

$

-

 

Residential real estate

 

707

 

 

 

1,722

 

 

 

16

 

Total nonaccrual loans

$

707

 

$

1,723

 

$

16