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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Allowance for Credit Losses

Schedule of changes in the allowance for credit and loan losses

Consumer

(Dollars in thousands)

Commercial

Consumer

Finance

Total

Allowance for credit losses:

Balance at December 31, 2023

$

12,315

$

3,758

$

23,578

$

39,651

Provision charged to operations

645

255

5,100

6,000

Loans charged off

—

(169)

(7,572)

(7,741)

Recoveries of loans previously charged off

18

98

2,317

2,433

Balance at June 30, 2024

$

12,978

$

3,942

$

23,423

$

40,343


								Consumer
(Dollars in thousands)		Commercial			Consumer			Finance			Total
Allowance for credit losses:
Balance at December 31, 2022		$	11,219		$	3,330		$	25,969		$	40,518
Impact of ASC 326 adoption on non-PCD loans			(617)			98			406			(113)
Impact of ASC 326 adoption on PCD loans			595			9			—			604
Provision charged to operations			432			219			2,700			3,351
Loans charged off			(16)			(157)			(5,934)			(6,107)
Recoveries of loans previously charged off			125			104			2,046			2,275
Balance at June 30, 2023		$	11,738		$	3,603		$	25,187		$	40,528

Schedule of breakdown of provision for credit losses


		Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)		2024			2023			2024			2023
Provision for credit losses:
Provision for loans		$	2,400		$	1,401		$	6,000		$	3,351
Provision for unfunded commitments			150			299			50			399
Total		$	2,550		$	1,700		$	6,050		$	3,750

Schedule of loans by credit quality indicators


																				Revolving			Revolving
		Term Loans Recorded Balance by Origination Year																		Loans			Loans
																				Recorded			Converted
(Dollars in thousands)		2024			2023			2022			2021			2020			Prior			Balance			to Term¹			Total
Commercial real estate:
Loan Rating
Pass		$	57,461		$	78,507		$	125,591		$	149,376		$	118,129		$	165,667		$	—		$	114		$	694,845
Special Mention			—			—			—			5,668			—			947			—			—			6,615
Total		$	57,461		$	78,507		$	125,591		$	155,044		$	118,129		$	166,614		$	—		$	114		$	701,460

Commercial business:
Loan Rating
Pass		$	5,154		$	15,501		$	18,034		$	15,884		$	11,624		$	26,395		$	26,252		$	96		$	118,940
Special Mention			25			55			—			—			—			—			—			—			80
Total		$	5,179		$	15,556		$	18,034		$	15,884		$	11,624		$	26,395		$	26,252		$	96		$	119,020

Construction - commercial real estate:
Loan Rating
Pass		$	20,161		$	45,282		$	54,765		$	—		$	—		$	—		$	—		$	—		$	120,208
Total		$	20,161		$	45,282		$	54,765		$	—		$	—		$	—		$	—		$	—		$	120,208

Land acquisition and development:
Loan Rating
Pass		$	3,339		$	5,708		$	3,942		$	8,368		$	9,998		$	—		$	—		$	—		$	31,355
Total		$	3,339		$	5,708		$	3,942		$	8,368		$	9,998		$	—		$	—		$	—		$	31,355

Builder lines:
Loan Rating
Pass		$	12,471		$	6,818		$	1,555		$	479		$	—		$	404		$	—		$	—		$	21,727
Total		$	12,471		$	6,818		$	1,555		$	479		$	—		$	404		$	—		$	—		$	21,727

Construction - consumer real estate:
Loan Rating
Pass		$	5,203		$	9,844		$	917		$	—		$	—		$	—		$	—		$	—		$	15,964
Substandard Nonaccrual			—			517			—			—			—			—			—			—			517
Total		$	5,203		$	10,361		$	917		$	—		$	—		$	—		$	—		$	—		$	16,481

Residential mortgage:
Loan Rating
Pass		$	32,529		$	56,114		$	86,985		$	42,060		$	37,588		$	51,633		$	—		$	—		$	306,909
Special Mention			—			872			43			—			—			34			—			—			949
Substandard			—			—			—			—			103			298			—			—			401
Substandard Nonaccrual			131			21			105			—			—			274			—			—			531
Total		$	32,660		$	57,007		$	87,133		$	42,060		$	37,691		$	52,239		$	—		$	—		$	308,790

Equity lines:
Loan Rating
Pass		$	—		$	—		$	—		$	—		$	70		$	844		$	55,438		$	277		$	56,629
Substandard			—			—			—			—			—			5			—			151			156
Substandard Nonaccrual			—			—			—			—			—			—			—			50			50
Total		$	—		$	—		$	—		$	—		$	70		$	849		$	55,438		$	478		$	56,835

Other consumer:
Loan Rating
Pass		$	3,891		$	3,643		$	2,059		$	409		$	189		$	718		$	47		$	—		$	10,956
Total		$	3,891		$	3,643		$	2,059		$	409		$	189		$	718		$	47		$	—		$	10,956

Total:
Loan Rating
Pass		$	140,209		$	221,417		$	293,848		$	216,576		$	177,598		$	245,661		$	81,737		$	487		$	1,377,533
Special Mention			25			927			43			5,668			—			981			—			—			7,644
Substandard			—			—			—			—			103			303			—			151			557
Substandard Nonaccrual			131			538			105			—			—			274			—			50			1,098
Total		$	140,365		$	222,882		$	293,996		$	222,244		$	177,701		$	247,219		$	81,737		$	688		$	1,386,832

1

For the three and six months ended June 30, 2024, $78,000 and $136,000 of equity lines revolving loans were converted to term, respectively.


																				Revolving			Revolving
		Term Loans Recorded Balance by Origination Year																		Loans			Loans
																				Recorded			Converted
(Dollars in thousands)		2023			2022			2021			2020			2019			Prior			Balance			to Term¹			Total
Commercial real estate:
Loan Rating
Pass		$	81,324		$	125,278		$	155,805		$	121,365		$	37,383		$	140,158		$	—		$	119		$	661,432
Special Mention			—			—			5,731			—			—			959			—			—			6,690
Total		$	81,324		$	125,278		$	161,536		$	121,365		$	37,383		$	141,117		$	—		$	119		$	668,122

Commercial business:
Loan Rating
Pass		$	18,682		$	18,190		$	17,219		$	12,062		$	14,847		$	15,339		$	18,686		$	261		$	115,286
Special Mention			62			—			—			—			—			—			—			—			62
Total		$	18,744		$	18,190		$	17,219		$	12,062		$	14,847		$	15,339		$	18,686		$	261		$	115,348

Construction - commercial real estate:
Loan Rating
Pass		$	29,346		$	36,907		$	—		$	3,515		$	—		$	—		$	—		$	—		$	69,768
Total		$	29,346		$	36,907		$	—		$	3,515		$	—		$	—		$	—		$	—		$	69,768

Land acquisition and development:
Loan Rating
Pass		$	4,562		$	4,665		$	9,844		$	9,993		$	—		$	—		$	—		$	—		$	29,064
Total		$	4,562		$	4,665		$	9,844		$	9,993		$	—		$	—		$	—		$	—		$	29,064

Builder lines:
Loan Rating
Pass		$	17,919		$	5,124		$	1,221		$	—		$	404		$	—		$	—		$	—		$	24,668
Total		$	17,919		$	5,124		$	1,221		$	—		$	404		$	—		$	—		$	—		$	24,668

Construction - consumer real estate:
Loan Rating
Pass		$	7,889		$	3,240		$	—		$	—		$	—		$	—		$	94		$	—		$	11,223
Total		$	7,889		$	3,240		$	—		$	—		$	—		$	—		$	94		$	—		$	11,223

Residential mortgage:
Loan Rating
Pass		$	59,441		$	91,086		$	44,292		$	40,089		$	11,524		$	46,192		$	—		$	—		$	292,624
Special Mention			—			—			—			—			—			44			—			—			44
Substandard			—			—			—			103			—			165			—			—			268
Substandard Nonaccrual			—			—			—			—			62			258			—			—			320
Total		$	59,441		$	91,086		$	44,292		$	40,192		$	11,586		$	46,659		$	—		$	—		$	293,256

Equity lines:
Loan Rating
Pass		$	—		$	—		$	34		$	70		$	—		$	857		$	50,120		$	344		$	51,425
Special Mention			—			—			—			—			—			—			—			85			85
Substandard			—			—			—			—			5			—			—			—			5
Substandard Nonaccrual			—			—			—			—			—			9			—			68			77
Total		$	—		$	—		$	34		$	70		$	5		$	866		$	50,120		$	497		$	51,592

Other consumer:
Loan Rating
Pass		$	6,263		$	2,762		$	606		$	282		$	101		$	519		$	46		$	—		$	10,579
Substandard Nonaccrual			—			—			—			—			9			—			—			—			9
Total		$	6,263		$	2,762		$	606		$	282		$	110		$	519		$	46		$	—		$	10,588

Total:
Loan Rating
Pass		$	225,426		$	287,252		$	229,021		$	187,376		$	64,259		$	203,065		$	68,946		$	724		$	1,266,069
Special Mention			62			—			5,731			—			—			1,003			—			85			6,881
Substandard			—			—			—			103			5			165			—			—			273
Substandard Nonaccrual			—			—			—			—			71			267			—			68			406
Total		$	225,488		$	287,252		$	234,752		$	187,479		$	64,335		$	204,500		$	68,946		$	877		$	1,273,629

1

All balances shown in this column were converted to term during the year ended December 31, 2023.

Revolving

Term Loans Recorded Balance by Origination Year

Loans

Revolving

Converted

(Dollars in thousands)

2024

2023

2022

2021

2020

Prior

Loans

to Term

Total

Consumer finance - automobiles:

Credit rating

Very good

$

14,402

$

12,501

$

10,050

$

3,209

$

706

$

179

$

—

$

—

$

41,047

Good

22,324

31,064

35,997

12,348

2,347

750

—

—

104,830

Fairly good

23,662

39,611

45,913

21,781

4,589

3,092

—

—

138,648

Fair

12,883

25,377

30,434

17,304

5,259

4,062

—

—

95,319

Marginal

2,860

5,407

7,244

6,332

2,435

2,711

—

—

26,989

Total

$

76,131

$

113,960

$

129,638

$

60,974

$

15,336

$

10,794

$

—

$

—

$

406,833

Consumer finance - marine and recreational vehicles:

Credit rating

Very good

$

7,061

$

6,830

$

13,759

$

8,922

$

8,818

$

4,265

$

—

$

—

$

49,655

Good

3,431

6,885

7,504

1,443

1,250

809

—

—

21,322

Fairly good

—

217

217

36

29

35

—

—

534

Total

$

10,492

$

13,932

$

21,480

$

10,401

$

10,097

$

5,109

$

—

$

—

$

71,511

Total:

Credit rating

Very good

$

21,463

$

19,331

$

23,809

$

12,131

$

9,524

$

4,444

$

—

$

—

$

90,702

Good

25,755

37,949

43,501

13,791

3,597

1,559

—

—

126,152

Fairly good

23,662

39,828

46,130

21,817

4,618

3,127

—

—

139,182

Fair

12,883

25,377

30,434

17,304

5,259

4,062

—

—

95,319

Marginal

2,860

5,407

7,244

6,332

2,435

2,711

—

—

26,989

Total

$

86,623

$

127,892

$

151,118

$

71,375

$

25,433

$

15,903

$

—

$

—

$

478,344


																							Revolving
		Term Loans Recorded Balance by Origination Year																					Loans
																				Revolving			Converted
(Dollars in thousands)		2023			2022			2021			2020			2019			Prior			Loans			to Term			Total
Consumer finance - automobiles:
Credit rating
Very good		$	14,916		$	12,395		$	4,291		$	1,012		$	277		$	22		$	—		$	—		$	32,913
Good			35,203			42,800			15,530			3,338			1,090			325			—			—			98,286
Fairly good			44,227			54,968			26,645			6,186			3,984			1,470			—			—			137,480
Fair			28,779			36,794			22,266			7,014			4,808			1,908			—			—			101,569
Marginal			6,359			8,956			7,715			3,322			2,832			1,844			—			—			31,028
Total		$	129,484		$	155,913		$	76,447		$	20,872		$	12,991		$	5,569		$	—		$	—		$	401,276

Consumer finance - marine and recreational vehicles:
Credit rating
Very good		$	7,481		$	15,000		$	9,857		$	9,952		$	2,518		$	2,438		$	—		$	—		$	47,246
Good			7,419			8,130			1,602			1,384			410			453			—			—			19,398
Fairly good			265			221			37			30			—			37			—			—			590
Total		$	15,165		$	23,351		$	11,496		$	11,366		$	2,928		$	2,928		$	—		$	—		$	67,234

Total:
Credit rating
Very good		$	22,397		$	27,395		$	14,148		$	10,964		$	2,795		$	2,460		$	—		$	—		$	80,159
Good			42,622			50,930			17,132			4,722			1,500			778			—			—			117,684
Fairly good			44,492			55,189			26,682			6,216			3,984			1,507			—			—			138,070
Fair			28,779			36,794			22,266			7,014			4,808			1,908			—			—			101,569
Marginal			6,359			8,956			7,715			3,322			2,832			1,844			—			—			31,028
Total		$	144,649		$	179,264		$	87,943		$	32,238		$	15,919		$	8,497		$	—		$	—		$	468,510


																							Revolving
		Current Period Gross Charge-offs by Origination Year																					Loans
																				Revolving			Converted
(Dollars in thousands)		2024			2023			2022			2021			2020			Prior			Loans			to Term			Total
Residential mortgage		$	3		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	3
Other consumer¹			147			11			5			—			—			3			—			—			166
Consumer finance - automobiles			78			1,370			3,383			1,846			312			405			—			—			7,394
Consumer finance - marine and recreational vehicles			—			40			103			8			27			—			—			—			178
Total		$	228		$	1,421		$	3,491		$	1,854		$	339		$	408		$	—		$	—		$	7,741

1	Gross charge-offs of other consumer loans for the six months ended June 30, 2024 included $137,000 of demand deposit overdrafts that originated in 2024.


																							Revolving
		Current Period Gross Charge-offs by Origination Year																					Loans
																				Revolving			Converted
(Dollars in thousands)		2023			2022			2021			2020			2019			Prior			Loans			to Term			Total
Commercial business		$	—		$	16		$	—		$	—		$	—		$	—		$	—		$	—		$	16
Equity lines			—			—			—			—			—			8			—			—			8
Other consumer¹			140			7			—			—			2			—			—			—			149
Consumer finance - automobiles			83			2,789			1,739			430			312			460			—			—			5,813
Consumer finance - marine and recreational vehicles			—			56			—			49			2			14			—			—			121
Total		$	223		$	2,868		$	1,739		$	479		$	316		$	482		$	—		$	—		$	6,107

1	Gross charge-offs of other consumer loans for the six months ended June 30, 2023 included $139,000 of demand deposit overdrafts that originated in 2023.