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Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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

1,160

440

8,100

9,700

Loans charged off

—

(293)

(11,707)

(12,000)

Recoveries of loans previously charged off

28

125

3,267

3,420

Balance at September 30, 2024

$

13,503

$

4,030

$

23,238

$

40,771


								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			839			362			4,250			5,451
Loans charged off			(16)			(240)			(9,306)			(9,562)
Recoveries of loans previously charged off			144			136			3,070			3,350
Balance at September 30, 2023		$	12,164		$	3,695		$	24,389		$	40,248

Schedule of breakdown of provision for credit losses


		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)		2024			2023			2024			2023
Provision for credit losses:
Provision for loans		$	3,700		$	2,100		$	9,700		$	5,451
Provision for unfunded commitments			—			(50)			50			349
Total		$	3,700		$	2,050		$	9,750		$	5,800

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		$	71,877		$	80,522		$	123,080		$	143,969		$	112,031		$	163,489		$	—		$	112		$	695,080
Special Mention			—			—			—			5,624			—			943			—			—			6,567
Total		$	71,877		$	80,522		$	123,080		$	149,593		$	112,031		$	164,432		$	—		$	112		$	701,647

Commercial business:
Loan Rating
Pass		$	6,189		$	14,223		$	19,158		$	14,247		$	10,710		$	25,128		$	25,587		$	—		$	115,242
Special Mention			24			52			—			—			—			—			—			—			76
Substandard Nonaccrual			—			—			—			—			—			—			—			92			92
Total		$	6,213		$	14,275		$	19,158		$	14,247		$	10,710		$	25,128		$	25,587		$	92		$	115,410

Construction - commercial real estate:
Loan Rating
Pass		$	38,479		$	50,213		$	61,410		$	—		$	4,970		$	—		$	—		$	—		$	155,072
Total		$	38,479		$	50,213		$	61,410		$	—		$	4,970		$	—		$	—		$	—		$	155,072

Land acquisition and development:
Loan Rating
Pass		$	19,073		$	2,114		$	2,662		$	1,324		$	8,601		$	—		$	—		$	—		$	33,774
Total		$	19,073		$	2,114		$	2,662		$	1,324		$	8,601		$	—		$	—		$	—		$	33,774

Builder lines:
Loan Rating
Pass		$	23,913		$	3,436		$	1,430		$	481		$	—		$	404		$	—		$	—		$	29,664
Total		$	23,913		$	3,436		$	1,430		$	481		$	—		$	404		$	—		$	—		$	29,664

Construction - consumer real estate:
Loan Rating
Pass		$	11,329		$	5,099		$	358		$	—		$	—		$	—		$	88		$	—		$	16,874
Total		$	11,329		$	5,099		$	358		$	—		$	—		$	—		$	88		$	—		$	16,874

Residential mortgage:
Loan Rating
Pass		$	39,210		$	58,659		$	84,733		$	40,701		$	36,323		$	49,080		$	—		$	—		$	308,706
Special Mention			—			869			—			—			—			223			—			—			1,092
Substandard			—			—			—			—			102			179			—			—			281
Substandard Nonaccrual			128			—			—			—			—			388			—			—			516
Total		$	39,338		$	59,528		$	84,733		$	40,701		$	36,425		$	49,870		$	—		$	—		$	310,595

Equity lines:
Loan Rating
Pass		$	23		$	—		$	—		$	—		$	70		$	839		$	58,050		$	239		$	59,221
Special Mention			—			—			—			—			—			—			—			76			76
Substandard			—			—			—			—			—			—			—			89			89
Substandard Nonaccrual			—			—			—			—			—			—			—			20			20
Total		$	23		$	—		$	—		$	—		$	70		$	839		$	58,050		$	424		$	59,406

Other consumer:
Loan Rating
Pass		$	3,842		$	2,841		$	1,828		$	336		$	163		$	611		$	46		$	—		$	9,667
Total		$	3,842		$	2,841		$	1,828		$	336		$	163		$	611		$	46		$	—		$	9,667

Total:
Loan Rating
Pass		$	213,935		$	217,107		$	294,659		$	201,058		$	172,868		$	239,551		$	83,771		$	351		$	1,423,300
Special Mention			24			921			—			5,624			—			1,166			—			76			7,811
Substandard			—			—			—			—			102			179			—			89			370
Substandard Nonaccrual			128			—			—			—			—			388			—			112			628
Total		$	214,087		$	218,028		$	294,659		$	206,682		$	172,970		$	241,284		$	83,771		$	628		$	1,432,109

1

Equity lines include $154,000 of revolving loans converted to term during the nine months ended September 30, 2024.


																				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 rating¹

Very good

$

19,654

$

11,317

$

8,863

$

2,796

$

550

$

125

$

—

$

—

$

43,305

Good

32,490

28,443

32,578

10,822

1,948

514

—

—

106,795

Fairly good

34,183

36,945

41,542

19,129

3,878

2,274

—

—

137,951

Fair

19,812

23,501

27,507

15,261

4,392

2,988

—

—

93,461

Marginal

3,940

4,875

6,473

5,571

2,056

1,958

—

—

24,873

Total

$

110,079

$

105,081

$

116,963

$

53,579

$

12,824

$

7,859

$

—

$

—

$

406,385

Consumer finance - marine and recreational vehicles:

Credit rating¹

Very good

$

8,523

$

6,487

$

13,137

$

8,397

$

8,277

$

4,003

$

—

$

—

$

48,824

Good

4,589

6,593

7,135

1,395

1,208

684

—

—

21,604

Fairly good

—

203

186

35

28

35

—

—

487

Total

$

13,112

$

13,283

$

20,458

$

9,827

$

9,513

$

4,722

$

—

$

—

$

70,915

Total:

Credit rating¹

Very good

$

28,177

$

17,804

$

22,000

$

11,193

$

8,827

$

4,128

$

—

$

—

$

92,129

Good

37,079

35,036

39,713

12,217

3,156

1,198

—

—

128,399

Fairly good

34,183

37,148

41,728

19,164

3,906

2,309

—

—

138,438

Fair

19,812

23,501

27,507

15,261

4,392

2,988

—

—

93,461

Marginal

3,940

4,875

6,473

5,571

2,056

1,958

—

—

24,873

Total

$

123,191

$

118,364

$

137,421

$

63,406

$

22,337

$

12,581

$

—

$

—

$

477,300

1	Credit ratings with a FICO score greater than 739 are considered Very Good, FICO scores ranging from 670-739 are considered Good, FICO scores ranging from 625-669 are considered Fairly Good, FICO scores ranging from 580-624 are considered Fair and FICO scores less than 580 are considered Marginal.


																							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 rating¹
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 rating¹
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 rating¹
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

1	Credit ratings with a FICO score greater than 739 are considered Very Good, FICO scores ranging from 670-739 are considered Good, FICO scores ranging from 625-669 are considered Fairly Good, FICO scores ranging from 580-624 are considered Fair and FICO scores less than 580 are considered Marginal.


																							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			204			19			5			—			—			62			—			—			290
Consumer finance - automobiles			367			2,275			5,053			2,691			457			573			—			—			11,416
Consumer finance - marine and recreational vehicles			—			56			160			34			27			14			—			—			291
Total		$	574		$	2,350		$	5,218		$	2,725		$	484		$	649		$	—		$	—		$	12,000

1	Gross charge-offs of other consumer loans for the nine months ended September 30, 2024 included $193,000 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			199			25			—			3			2			3			—			—			232
Consumer finance - automobiles			490			4,396			2,628			583			477			567			—			—			9,141
Consumer finance - marine and recreational vehicles			—			82			—			40			6			37			—			—			165
Total		$	689		$	4,519		$	2,628		$	626		$	485		$	615		$	—		$	—		$	9,562

1	Gross charge-offs of other consumer loans for the nine months ended September 30, 2023 included $199,000 of demand deposit overdrafts that originated in 2023.