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Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2024

Allowance for Credit Losses

Schedule of changes in the allowance for credit and loan losses

Consumer

(Dollars in thousands)

Commercial

Consumer

Finance

Total

Balance at December 31, 2023

$

12,315

$

3,758

$

23,578

$

39,651

Provision charged to operations

1,058

442

11,600

13,100

Loans charged off

(63)

(377)

(16,723)

(17,163)

Recoveries of loans previously charged off

37

209

4,253

4,499

Balance at December 31, 2024

$

13,347

$

4,032

$

22,708

$

40,087


								Consumer
(Dollars in thousands)		Commercial			Consumer			Finance			Total
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			978			498			6,650			8,126
Loans charged off			(16)			(356)			(13,743)			(14,115)
Recoveries of loans previously charged off			156			179			4,296			4,631
Balance at December 31, 2023		$	12,315		$	3,758		$	23,578		$	39,651


		Real Estate						Commercial,
		Residential			Real Estate			Financial &			Equity						Consumer
(Dollars in thousands)		Mortgage			Construction			Agricultural			Lines			Consumer			Finance			Total
Balance at December 31, 2021		$	2,660		$	856		$	11,085		$	593		$	172		$	24,791		$	40,157
Provision charged to operations			(54)			(68)			(534)			(98)			186			3,740			3,172
Loans charged off			(2)			—			(140)			—			(260)			(7,016)			(7,418)
Recoveries of loans previously charged off			18			—			20			2			113			4,454			4,607
Balance at December 31, 2022		$	2,622		$	788		$	10,431		$	497		$	211		$	25,969		$	40,518

Schedule of breakdown of provision for credit losses


		Year Ended December 31,
(Dollars in thousands)		2024			2023			2022
Provision for credit losses:
Provision for loans		$	13,100		$	8,126		$	3,172
Provision for unfunded commitments			150			149			—
Total		$	13,250		$	8,275		$	3,172

Schedule of loans by credit quality indicators

The table below details the recorded balance of the classes of loans within the commercial and consumer loan portfolios

by loan rating, which is reviewed on a quarterly basis, and year of origination as of December 31, 2024:


																				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		$	91,330		$	80,445		$	161,794		$	131,071		$	110,055		$	158,437		$	—		$	110		$	733,242
Special Mention			—			—			—			—			—			940			—			—			940
Total		$	91,330		$	80,445		$	161,794		$	131,071		$	110,055		$	159,377		$	—		$	110		$	734,182

Commercial business:
Loan Rating
Pass		$	9,425		$	13,097		$	14,663		$	13,954		$	8,843		$	22,690		$	22,206		$	69		$	104,947
Total		$	9,425		$	13,097		$	14,663		$	13,954		$	8,843		$	22,690		$	22,206		$	69		$	104,947

Construction - commercial real estate:
Loan Rating
Pass		$	47,294		$	55,159		$	24,320		$	—		$	5,944		$	—		$	—		$	—		$	132,717
Total		$	47,294		$	55,159		$	24,320		$	—		$	5,944		$	—		$	—		$	—		$	132,717

Land acquisition and development:
Loan Rating
Pass		$	33,129		$	2,653		$	366		$	1,323		$	8,601		$	—		$	—		$	—		$	46,072
Total		$	33,129		$	2,653		$	366		$	1,323		$	8,601		$	—		$	—		$	—		$	46,072

Builder lines:
Loan Rating
Pass		$	30,651		$	3,120		$	1,430		$	—		$	—		$	404		$	—		$	—		$	35,605
Total		$	30,651		$	3,120		$	1,430		$	—		$	—		$	404		$	—		$	—		$	35,605

Construction - consumer real estate:
Loan Rating
Pass		$	16,472		$	2,327		$	—		$	—		$	—		$	—		$	—		$	—		$	18,799
Total		$	16,472		$	2,327		$	—		$	—		$	—		$	—		$	—		$	—		$	18,799

Residential mortgage:
Loan Rating
Pass		$	47,653		$	58,590		$	80,991		$	38,833		$	34,979		$	45,831		$	—		$	—		$	306,877
Special Mention			—			890			—			223			103			211			—			—			1,427
Substandard			—			—			—			—			—			172			—			—			172
Substandard Nonaccrual			125			—			92			—			—			116			—			—			333
Total		$	47,778		$	59,480		$	81,083		$	39,056		$	35,082		$	46,330		$	—		$	—		$	308,809

Equity lines:
Loan Rating
Pass		$	—		$	—		$	—		$	—		$	60		$	628		$	61,077		$	277		$	62,042
Special Mention			—			—			—			—			—			—			—			76			76
Substandard			—			—			—			—			—			—			—			86			86
Total		$	—		$	—		$	—		$	—		$	60		$	628		$	61,077		$	439		$	62,204

Other consumer:
Loan Rating
Pass		$	5,274		$	2,384		$	1,547		$	257		$	132		$	630		$	46		$	—		$	10,270
Total		$	5,274		$	2,384		$	1,547		$	257		$	132		$	630		$	46		$	—		$	10,270

Total:
Loan Rating
Pass		$	281,228		$	217,775		$	285,111		$	185,438		$	168,614		$	228,620		$	83,329		$	456		$	1,450,571
Special Mention			—			890			—			223			103			1,151			—			76			2,443
Substandard			—			—			—			—			—			172			—			86			258
Substandard Nonaccrual			125			—			92			—			—			116			—			—			333
Total		$	281,353		$	218,665		$	285,203		$	185,661		$	168,717		$	230,059		$	83,329		$	618		$	1,453,605

1

Commercial business and equity lines include $69,000 and $179,000, respectively, of revolving loans converted to term during the year ended December 31, 2024.

The table below details the recorded balance of the classes of loans within the commercial and consumer loan portfolios by loan rating, which is reviewed on a quarterly basis, and year of origination as of December 31, 2023:


																				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

1All balances shown in this column were converted to term during the year ended December 31, 2023.

The table below details the recorded balance of the classes of loans within the consumer finance loan portfolio by credit rating at the time of origination and year of origination as of December 31, 2024:

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

$

22,161

$

10,039

$

7,971

$

2,359

$

426

$

77

$

—

$

—

$

43,033

Good

40,296

25,730

29,455

9,402

1,574

334

—

—

106,791

Fairly good

41,881

34,058

37,486

16,935

3,213

1,602

—

—

135,175

Fair

25,796

21,278

24,379

13,260

3,674

2,194

—

—

90,581

Marginal

5,049

4,383

5,621

4,856

1,681

1,481

—

—

23,071

Total

$

135,183

$

95,488

$

104,912

$

46,812

$

10,568

$

5,688

$

—

$

—

$

398,651

Consumer finance - marine and recreational vehicles:

Credit rating¹

Very good

$

8,124

$

6,283

$

12,670

$

8,003

$

7,927

$

3,754

$

—

$

—

$

46,761

Good

4,515

6,426

6,832

1,326

1,178

625

—

—

20,902

Fairly good

—

200

183

35

27

34

—

—

479

Total

$

12,639

$

12,909

$

19,685

$

9,364

$

9,132

$

4,413

$

—

$

—

$

68,142

Total:

Credit rating¹

Very good

$

30,285

$

16,322

$

20,641

$

10,362

$

8,353

$

3,831

$

—

$

—

$

89,794

Good

44,811

32,156

36,287

10,728

2,752

959

—

—

127,693

Fairly good

41,881

34,258

37,669

16,970

3,240

1,636

—

—

135,654

Fair

25,796

21,278

24,379

13,260

3,674

2,194

—

—

90,581

Marginal

5,049

4,383

5,621

4,856

1,681

1,481

—

—

23,071

Total

$

147,822

$

108,397

$

124,597

$

56,176

$

19,700

$

10,101

$

—

$

—

$

466,793

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.

The table below details the recorded balance of the classes of loans within the consumer finance loan portfolio by credit rating at the time of origination and year of origination as of December 31, 2023:


																							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.

Schedule of current period gross charge-offs of loans by year of origination

The following table details the current period gross charge-offs of loans by year of origination for the year ended December 31, 2024:


																							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
Commercial business		$	63		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	63
Residential mortgage			13			—			—			—			—			—			—			—			13
Other consumer¹			278			19			5			—			—			62			—			—			364
Consumer finance - automobiles			843			3,323			7,080			3,705			670			691			—			—			16,312
Consumer finance - marine and recreational vehicles			—			56			240			58			43			14			—			—			411
Total		$	1,197		$	3,398		$	7,325		$	3,763		$	713		$	767		$	—		$	—		$	17,163

1	Gross charge-offs of other consumer loans for the year ended December 31, 2024 included $256,000 of demand deposit overdrafts that originated in 2024.

The following table details the current period gross charge-offs of loans by year of origination for the year ended December 31, 2023:


																							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
Residential mortgage			—			—			4			—			—			—			—			—			4
Equity lines			—			—			—			—			—			8			—			—			8
Other consumer¹			308			28			—			3			2			3			—			—			344
Consumer finance - automobiles			1,246			6,169			3,783			833			735			716			—			—			13,482
Consumer finance - marine and recreational vehicles			—			127			51			40			6			37			—			—			261
Total		$	1,554		$	6,340		$	3,838		$	876		$	743		$	764		$	—		$	—		$	14,115

1	Gross charge-offs of other consumer loans for the year ended December 31, 2023 included $308,000 of demand deposit overdrafts that originated in 2023.