XML 21 R11.htm IDEA: XBRL DOCUMENT

Loans

3 Months Ended

Mar. 31, 2024

NOTE 3: Loans

The Corporation’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the table below. The Corporation has elected to exclude accrued interest receivable, totaling $7.83 million at March 31, 2024, from the recorded balance of loans.


	March 31,		December 31,
(Dollars in thousands)	2024		2023
Commercial real estate	$	693,603	$	668,122
Commercial business		116,236		115,348
Construction - commercial real estate		96,916		69,768
Land acquisition and development		29,644		29,064
Builder lines		28,363		24,668
Construction - consumer real estate		12,471		11,223
Residential mortgage		300,178		293,256
Equity lines		54,463		51,592
Other consumer		9,450		10,588
Consumer finance - automobiles		407,280		401,276
Consumer finance - marine and recreational vehicles		68,823		67,234
Subtotal		1,817,427		1,742,139
Less allowance for credit losses		(40,200)		(39,651)
Loans, net	$	1,777,227	$	1,702,488

Other consumer loans included $180,000 and $228,000 of demand deposit overdrafts at March 31, 2024 and December 31, 2023, respectively.

The following table shows the aging of the Corporation’s loan portfolio, by class, at March 31, 2024:


	30-59		60-89		90+								90+ Days
	Days		Days		Days		Total						Past Due and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current¹		Total Loans		Accruing
Commercial real estate	$	—	$	—	$	—	$	—	$	693,603	$	693,603	$	—
Commercial business		9		—		—		9		116,227		116,236		—
Construction - commercial real estate		—		—		—		—		96,916		96,916		—
Land acquisition and development		—		—		—		—		29,644		29,644		—
Builder lines		—		—		—		—		28,363		28,363		—
Construction - consumer real estate		—		—		—		—		12,471		12,471		—
Residential mortgage		780		—		216		996		299,182		300,178		216
Equity lines		457		—		161		618		53,845		54,463		62
Other consumer		78		—		9		87		9,363		9,450		—
Consumer finance - automobiles		10,782		1,330		705		12,817		394,463		407,280		—
Consumer finance - marine and recreational vehicles		385		—		36		421		68,402		68,823		—
Total	$	12,491	$	1,330	$	1,127	$	14,948	$	1,802,479	$	1,817,427	$	278

For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $155,000, 30-59 days past due of $286,000 and 90+ days past due of $850,000.

The following table shows the aging of the Corporation’s loan portfolio, by class, at December 31, 2023:


	30-59		60-89		90+								90+ Days
	Days		Days		Days		Total						Past Due and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current¹		Total Loans		Accruing
Commercial real estate	$	92	$	—	$	—	$	92	$	668,030	$	668,122	$	—
Commercial business		—		—		1		1		115,347		115,348		1
Construction - commercial real estate		—		—		—		—		69,768		69,768		—
Land acquisition and development		—		—		—		—		29,064		29,064		—
Builder lines		—		—		—		—		24,668		24,668		—
Construction - consumer real estate		—		—		—		—		11,223		11,223		—
Residential mortgage		1,643		387		273		2,303		290,953		293,256		89
Equity lines		215		103		115		433		51,159		51,592		38
Other consumer		3		—		9		12		10,576		10,588		—
Consumer finance - automobiles		15,263		2,628		892		18,783		382,493		401,276		—
Consumer finance - marine and recreational vehicles		282		115		—		397		66,837		67,234		—
Total	$	17,498	$	3,233	$	1,290	$	22,021	$	1,720,118	$	1,742,139	$	128

1For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $113,000, 60-89 days past due of $22,000 and 90+ days past due of $1.16 million.

The following table shows the Corporation’s recorded balance of loans on nonaccrual status as of March 31, 2024 and December 31, 2023. The Corporation recognized $3,000 in interest income on loans on nonaccrual status as of March 31, 2024 and had no reversals of interest income upon placing loans on nonaccrual status during the three months ended March 31, 2024. All nonaccrual loans at March 31, 2024 had an allowance for credit losses.


	March 31,		December 31,
(Dollars in thousands)	2024		2023
Residential mortgage	$	441	$	320
Equity lines		99		77
Other consumer		10		9
Consumer finance - automobiles		705		892
Consumer finance - marine and recreational vehicles		36		—
Total	$	1,291	$	1,298

Occasionally, the Corporation modifies loans to borrowers experiencing financial difficulties by providing principal forgiveness, term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the allowance for credit losses due to the measurement methodologies used in its estimate, the allowance for credit losses is typically not adjusted upon modification. When principal forgiveness is provided at modification, the amount forgiven is charged against the allowance for credit losses. In some cases, the Corporation may provide multiple types of modifications on one loan and when multiple types of modifications occur within the same period, the combination of modifications is separately reported.

The following table presents the amortized cost basis of loans as of March 31, 2024 and 2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and 2023.


	Three Months Ended March 31, 2024					Three Months Ended March 31, 2023
			% of Total					% of Total
			Class of					Class of
	Amortized		Financing			Amortized		Financing
(Dollars in thousands)	Cost		Receivable			Cost		Receivable
Term Extension
Residential mortgage	$	341		0.1	%	$	—		—	%
Total Term Extension	$	341				$	—

Combination Term Extension and Interest Rate Reduction
Commercial real estate	$	—		—	%	$	47		—	%
Residential mortgage		19		—			—		—
Total Combination Term Extension and Interest Rate Reduction	$	19				$	47
Total	$	360		0.1	%	$	47		—	%

The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024

Three Months Ended March 31, 2023

Weighted-

Average

Interest Rate

Term Extension

Interest Rate

Term Extension

(Dollars in thousands)

Reduction

(in years)

Reduction

(in years)

Commercial real estate

—

0.75

4.9

Residential mortgage

1.51

6.9

—

Total

1.51

6.9

0.75

4.9

The Corporation closely monitors the performance of modified loans to understand the effectiveness of its modification efforts. Upon the determination that all or a portion of a modified loan is uncollectible, that amount is charged against the allowance for credit losses. There were no payment defaults during the three months ended March 31, 2024 and 2023 of modified loans that were modified during the previous twelve months and all were current as of March 31, 2024.