Loans and Allowance for Credit Losses on Loans

6 Months Ended

Jun. 30, 2024

Loans and Allowance for Credit Losses on Loans

NOTE 5. Loans and Allowance for Credit Losses on Loans

The composition of loans at June 30, 2024 and December 31, 2023 was as follows:


	June 30,			December 31,
	2024			2023
	(in thousands)
Mortgage real estate loans:
Construction & Secured by Farmland	$	81,609		$	84,145
HELOCs		46,697			47,674
Residential First Lien - Investor		112,790			117,431
Residential First Lien - Owner Occupied		187,807			178,180
Residential Junior Liens		12,387			12,831
Commercial - Owner Occupied		257,675			251,456
Commercial - Non-Owner Occupied & Multifamily		352,892			348,879
Commercial and industrial loans:
SBA PPP loans		39			51
Other commercial and industrial loans		106,629			107,777
Marine loans		236,890			251,168
Consumer loans		34,076			42,419
Overdrafts		257			253
Other loans		11,951			12,895
Total loans	$	1,441,699		$	1,455,159
Net deferred loan costs and premiums		7,235			7,527
Allowance for credit losses		(15,014	)		(14,493	)
	$	1,433,920		$	1,448,193

At June 30, 2024, the Company was servicing $10.0 million of loans for other financial institutions which are not included in the table above. Also excluded from the table above are net servicing assets of $181 thousand at June 30, 2024, which are recorded in other assets in the Consolidated Balance Sheets. When loans are sold with servicing retained, servicing assets are

recorded which represent the Company's right to service loans that were sold. Servicing assets are initially recorded by the Company at fair value and are subsequently amortized in proportion to, and over the period of, estimated net servicing income.

Changes in the allowance for credit losses on loans for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
	(in thousands)
Balance, beginning	$	14,448		$	13,950		$	14,493		$	11,218
Cumulative effect adjustment for adoption of ASC 326		—			—			—			2,077
Provision for credit losses		314			410			789			1,119
Recoveries added to the allowance		424			203			609			224
Credit losses charged to the allowance		(172	)		(52	)		(877	)		(127	)
Balance, ending	$	15,014		$	14,511		$	15,014		$	14,511

Past due loans by class at June 30, 2024 and December 31, 2023 were as follows:


	June 30, 2024
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	—	$	81,609	$	81,609	$	—
HELOCs		18		—		—		18		46,679		46,697		—
Residential First Lien - Investor		—		—		1,063		1,063		111,727		112,790		—
Residential First Lien - Owner Occupied		173		—		97		270		187,537		187,807		—
Residential Junior Liens		—		—		—		—		12,387		12,387		—
Commercial - Owner Occupied		—		—		—		—		257,675		257,675		—
Commercial - Non-Owner Occupied & Multifamily		—		—		—		—		352,892		352,892		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		39		39		—
Other commercial and industrial loans		—		—		3		3		106,626		106,629		—
Marine loans		448		1,004		—		1,452		235,438		236,890		—
Consumer loans		419		82		167		668		33,408		34,076		167
Overdrafts		—		—		—		—		257		257		—
Other loans		—		—		—		—		11,951		11,951		—
Total	$	1,058	$	1,086	$	1,330	$	3,474	$	1,438,225	$	1,441,699	$	167


	December 31, 2023
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	—	$	84,145	$	84,145	$	—
HELOCs		—		—		—		—		47,674		47,674		—
Residential First Lien - Investor		844		253		—		1,097		116,334		117,431		—
Residential First Lien - Owner Occupied		—		78		149		227		177,953		178,180		—
Residential Junior Liens		—		—		9		9		12,822		12,831		—
Commercial - Owner Occupied		—		—		—		—		251,456		251,456		—
Commercial - Non-Owner Occupied & Multifamily		—		—		—		—		348,879		348,879		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		51		51		—
Other commercial and industrial loans		9		—		26		35		107,742		107,777		14
Marine loans		—		—		552		552		250,616		251,168		—
Consumer loans		173		—		167		340		42,079		42,419		167
Overdrafts		—		—		—		—		253		253		—
Other loans		—		—		—		—		12,895		12,895		—
Total	$	1,026	$	331	$	903	$	2,260	$	1,452,899	$	1,455,159	$	181

Nonaccrual loans by class at June 30, 2024 and December 31, 2023 were as follows:


	June 30, 2024						December 31, 2023
	(in thousands)						(in thousands)
	Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans		Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	95	$	—	$	95
HELOCs		—		—		—		15		—		15
Residential First Lien - Investor		1,063		—		1,063		1,085		—		1,085
Residential First Lien - Owner Occupied		172		—		172		228		—		228
Residential Junior Liens		—		—		—		11		—		11
Commercial - Owner Occupied		—		—		—		22		—		22
Commercial - Non-Owner Occupied & Multifamily		—		—		—		3,625		—		3,625
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		3		969		972		12		—		12
Marine loans		496		—		496		552		—		552
Consumer loans		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total	$	1,734	$	969	$	2,703	$	5,645	$	—	$	5,645

The allowance for credit losses on loans by segment at June 30, 2024 and December 31, 2023 was as follows:


	As of and For the Six Months Ended
	June 30, 2024
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	772		$	4,725		$	6,224		$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Charge-Offs		(94	)		(62	)		(7	)		(75	)		(453	)		(117	)		(69	)		—		(877	)
Recoveries		6			300			162			30			—			104			7			—		609
Provision		169			(384	)		(469	)		512			752			(16	)		(11	)		236		789
Ending balance	$	853		$	4,579		$	5,910		$	1,494		$	1,452		$	169		$	321		$	236	$	15,014
Ending balance: Individually evaluated for impairment	$	—		$	—		$	—		$	346		$	—		$	—		$	—		$	—	$	346
Ending balance: Collectively evaluated for impairment	$	853		$	4,579		$	5,910		$	1,148		$	1,452		$	169		$	321		$	236	$	14,668
Loans:
Ending balance	$	81,609		$	359,681		$	610,567		$	106,668		$	236,890		$	34,076		$	12,208		$	—	$	1,441,699
Ending balance: Individually evaluated for impairment	$	—		$	1,203		$	—		$	969		$	496		$	—		$	—		$	—	$	2,668
Ending balance: Collectively evaluated for impairment	$	81,609		$	358,478		$	610,567		$	105,699		$	236,394		$	34,076		$	12,208		$	—	$	1,439,031


	As of and For the Year Ended
	December 31, 2023
	(in thousands)
	Construction and Farmland			Residential Real Estate		Commercial Real Estate & MultiFamily		Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	2,714		$	1,735	$	2,221	$	2,222		$	1,555		$	299		$	472		$	—	$	11,218
Cumulative effect adjustment for adoption of ASC 326		(1,840	)		1,933		3,584		(1,102	)		(285	)		(123	)		(90	)		—		2,077
Charge-Offs		—			—		—		(312	)		(126	)		(121	)		(182	)		—		(741	)
Recoveries		8			18		—		43			—			48			181			—		298
Provision		(110	)		1,039		419		176			9			95			13			—		1,641
Ending balance	$	772		$	4,725	$	6,224	$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Ending balance: Individually evaluated for impairment	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—	$	—
Ending balance: Collectively evaluated for impairment	$	772		$	4,725	$	6,224	$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Loans:
Ending balance	$	84,145		$	356,116	$	600,335	$	107,828		$	251,168		$	42,419		$	13,148		$	—	$	1,455,159
Ending balance: Individually evaluated for impairment	$	95		$	1,288	$	3,639	$	—		$	552		$	—		$	—		$	—	$	5,574
Ending balance: Collectively evaluated for impairment	$	84,050		$	354,828	$	596,696	$	107,828		$	250,616		$	42,419		$	13,148		$	—	$	1,449,585

The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment:


	June 30, 2024						December 31, 2023
	(in thousands)						(in thousands)
(in thousands)	Real Estate Collateral		Other Collateral		Total		Real Estate Collateral		Other Collateral		Total
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	95	$	—	$	95
HELOCs		—		—		—		—		—		—
Residential First Lien - Investor		1,063		—		1,063		1,086		—		1,086
Residential First Lien - Owner Occupied		140		—		140		194		—		194
Residential Junior Liens		—		—		—		8		—		8
Commercial - Owner Occupied		—		—		—		14		—		14
Commercial - Non-Owner Occupied & Multifamily		—		—		—		3,625		—		3,625
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		—		969		969		—		—		—
Marine loans		—		496		496		—		552		552
Consumer loans		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
	$	1,203	$	1,465	$	2,668	$	5,022	$	552	$	5,574

The Company did not identify any significant changes in the extent to which collateral secures its collateral dependent loans, whether in the form of general deterioration or from other factors during the period ended June 30, 2024.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis is performed on a quarterly basis. The following table presents risk ratings by loan portfolio segment and origination year. Description of these ratings are as follows:


Pass		Pass loans exhibit acceptable history of profits, cash flow ability and liquidity. Sufficient cash flow exists to service the loan. All obligations have been paid by the borrower in an as agreed manner.
Special Mention		Special mention loans exhibit negative trends and potential weakness that, if left uncorrected, may negatively affect the borrower’s ability to repay its obligations. Loan relationships with stale financial statements at their annual review will also cause a downgrade to special mention until current financials are received and upgrade is approved. The risk of default is not imminent and the borrower still demonstrates sufficient financial strength to service debt.
Classified		Classified loans include loans rated Substandard, Doubtful and Loss.
		• Substandard loans exhibit well defined weaknesses resulting in a higher probability of default. The borrowers exhibit adverse financial trends and a diminishing ability or willingness to service debt.
		• Doubtful loans exhibit all of the characteristics inherent in substandard loans; however given the severity of weaknesses, the collection of 100% of the principal is unlikely under current conditions.
		• Loss loans are considered uncollectible over a reasonable period of time and of such little value that its continuance as a bankable asset is not warranted.

Credit quality information by class at June 30, 2024 was as follows:


	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	7,508	$	31,614	$	17,577	$	3,939	$	4,732	$	5,074	$	3,042	$	—	$	73,486
Special Mention		—		6,922		—		—		—		1,026		—		—		7,948
Classified		—		—		—		—		140		35		—		—		175
Total	$	7,508	$	38,536	$	17,577	$	3,939	$	4,872	$	6,135	$	3,042	$	—	$	81,609
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	94	$	—	$	—	$	94
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	46,697	$	—	$	46,697
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	46,697	$	—	$	46,697
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	—	$	14
Residential First Lien - Investor
Pass	$	5,196	$	15,410	$	21,631	$	28,308	$	10,211	$	23,963	$	—	$	1,131	$	105,850
Special Mention		—		2,650		985		1,342		598		302		—		—		5,877
Classified		—		—		—		1,063		—		—		—		—		1,063
Total	$	5,196	$	18,060	$	22,616	$	30,713	$	10,809	$	24,265	$	—	$	1,131	$	112,790
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	16,430	$	55,811	$	33,754	$	23,286	$	35,010	$	22,310	$	—	$	521	$	187,122
Special Mention		46		—		—		—		—		47		—		—		93
Classified		—		—		—		—		—		592		—		—		592
Total	$	16,476	$	55,811	$	33,754	$	23,286	$	35,010	$	22,949	$	—	$	521	$	187,807
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	38	$	—	$	—	$	38
Residential Junior Liens
Pass	$	433	$	2,490	$	2,732	$	1,983	$	1,361	$	3,176	$	—	$	182	$	12,357
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		15		—		15		30
Total	$	433	$	2,490	$	2,732	$	1,983	$	1,361	$	3,191	$	—	$	197	$	12,387
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	10	$	—	$	—	$	10
Commercial - Owner Occupied
Pass	$	16,924	$	33,974	$	57,176	$	33,998	$	21,402	$	48,076	$	1,715	$	4,157	$	217,422
Special Mention		—		1,432		13,360		5,374		2,578		16,070		—		—		38,814
Classified		—		—		—		949		490		—		—		—		1,439
Total	$	16,924	$	35,406	$	70,536	$	40,321	$	24,470	$	64,146	$	1,715	$	4,157	$	257,675
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial - Non-Owner Occupied & Multifamily
Pass	$	9,633	$	56,670	$	112,833	$	65,383	$	65,416	$	17,107	$	1,196	$	5,469	$	333,707
Special Mention		—		2,110		10,728		1,983		3,549		815		—		—		19,185
Classified		—		—		—		—		—		—		—		—		—
Total	$	9,633	$	58,780	$	123,561	$	67,366	$	68,965	$	17,922	$	1,196	$	5,469	$	352,892
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	—	$	39	$	—	$	—	$	—	$	—	$	39
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	39	$	—	$	—	$	—	$	—	$	39
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	18,358	$	10,313	$	24,421	$	7,627	$	3,953	$	5,824	$	29,423	$	1,081	$	101,000
Special Mention		—		2,458		—		30		—		40		1,829		300		4,657
Classified		—		969		—		—		3		—		—		—		972
Total	$	18,358	$	13,740	$	24,421	$	7,657	$	3,956	$	5,864	$	31,252	$	1,381	$	106,629
Current period gross charge-offs	$	—	$	11	$	9	$	—	$	55	$	—	$	—	$	—	$	75
Marine loans
Pass	$	—	$	78,246	$	124,394	$	33,100	$	654	$	—	$	—	$	—	$	236,394
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		496		—		—		—		—		—		—		496
Total	$	—	$	78,742	$	124,394	$	33,100	$	654	$	—	$	—	$	—	$	236,890
Current period gross charge-offs	$	—	$	366	$	87	$	—	$	—	$	—	$	—	$	—	$	453
Consumer loans
Pass	$	1,720	$	2,658	$	13,206	$	5,765	$	8,208	$	1,209	$	1,272	$	38	$	34,076
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	1,720	$	2,658	$	13,206	$	5,765	$	8,208	$	1,209	$	1,272	$	38	$	34,076
Current period gross charge-offs	$	82	$	10	$	—	$	25	$	—	$	—	$	—	$	—	$	117
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		257		—		—		—		—		—		—		—		257
Total	$	257	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	257
Current period gross charge-offs	$	69	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	69
Other loans
Pass	$	—	$	62	$	9,431	$	—	$	—	$	2,396	$	59	$	3	$	11,951
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	62	$	9,431	$	—	$	—	$	2,396	$	59	$	3	$	11,951
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category


Pass	$	76,202	$	287,248	$	417,155	$	203,428	$	150,947	$	129,135	$	83,404	$	12,582	$	1,360,101
Special Mention		46		15,572		25,073		8,729		6,725		18,300		1,829		300		76,574
Classified		257		1,465		—		2,012		633		642		—		15		5,024
Total	$	76,505	$	304,285	$	442,228	$	214,169	$	158,305	$	148,077	$	85,233	$	12,897	$	1,441,699
Total current period gross charge-offs	$	151	$	387	$	96	$	25	$	55	$	163	$	—	$	—	$	877

Credit quality information by class at December 31, 2023 was as follows:


	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	34,617	$	21,460	$	7,584	$	4,851	$	2,389	$	2,829	$	7,052	$	57	$	80,839
Special Mention		—		1,173		—		—		1,040		815		—		—		3,028
Classified		—		—		—		145		—		133		—		—		278
Total	$	34,617	$	22,633	$	7,584	$	4,996	$	3,429	$	3,777	$	7,052	$	57	$	84,145
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	47,610	$	—	$	47,610
Special Mention		—		—		—		—		—		—		49		—		49
Classified		—		—		—		—		—		—		15		—		15
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	47,674	$	—	$	47,674
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Investor
Pass	$	19,394	$	23,205	$	31,371	$	10,667	$	4,054	$	22,265	$	—	$	367	$	111,323
Special Mention		—		1,273		—		1,180		626		1,944		—		—		5,023
Classified		—		—		1,085		—		—		—		—		—		1,085
Total	$	19,394	$	24,478	$	32,456	$	11,847	$	4,680	$	24,209	$	—	$	367	$	117,431
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	59,007	$	33,793	$	23,749	$	35,783	$	3,932	$	20,413	$	—	$	589	$	177,266
Special Mention		—		—		—		—		—		258		—		—		258
Classified		—		—		—		—		—		656		—		—		656
Total	$	59,007	$	33,793	$	23,749	$	35,783	$	3,932	$	21,327	$	—	$	589	$	178,180
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Junior Liens
Pass	$	2,562	$	2,902	$	3,429	$	1,486	$	606	$	1,613	$	—	$	189	$	12,787
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		27		—		17		44
Total	$	2,562	$	2,902	$	3,429	$	1,486	$	606	$	1,640	$	—	$	206	$	12,831
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial - Owner Occupied
Pass	$	36,736	$	68,868	$	40,707	$	22,871	$	13,971	$	50,059	$	3,088	$	4,364	$	240,664
Special Mention		—		3,817		64		2,145		1,877		1,402		—		—		9,305
Classified		—		—		967		498		—		8		—		14		1,487
Total	$	36,736	$	72,685	$	41,738	$	25,514	$	15,848	$	51,469	$	3,088	$	4,378	$	251,456
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Non-Owner Occupied & Multifamily
Pass	$	56,510	$	88,518	$	64,005	$	65,075	$	15,563	$	34,619	$	1,196	$	5,651	$	331,137
Special Mention		624		4,748		3,685		5,060		—		—		—		—		14,117
Classified		—		—		—		2,355		—		1,270		—		—		3,625
Total	$	57,134	$	93,266	$	67,690	$	72,490	$	15,563	$	35,889	$	1,196	$	5,651	$	348,879
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	51	$	—	$	—	$	—	$	—	$	—	$	51
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	51	$	—	$	—	$	—	$	—	$	—	$	51
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	15,052	$	26,798	$	8,659	$	4,824	$	2,629	$	3,898	$	43,188	$	1,005	$	106,053
Special Mention		1,125		—		—		13		1		9		220		344		1,712
Classified		—		—		—		3		—		—		9		—		12
Total	$	16,177	$	26,798	$	8,659	$	4,840	$	2,630	$	3,907	$	43,417	$	1,349	$	107,777
Current period gross charge-offs	$	231	$	81	$	—	$	—	$	—	$	—	$	—	$	—	$	312
Marine loans
Pass	$	86,001	$	128,456	$	35,492	$	667	$	—	$	—	$	—	$	—	$	250,616
Special Mention		—		—		—		—		—		—		—		—		—
Classified		367		185		—		—		—		—		—		—		552
Total	$	86,368	$	128,641	$	35,492	$	667	$	—	$	—	$	—	$	—	$	251,168
Current period gross charge-offs	$	—	$	126	$	—	$	—	$	—	$	—	$	—	$	—	$	126
Consumer loans
Pass	$	3,427	$	13,950	$	6,205	$	8,687	$	1,747	$	21	$	8,354	$	28	$	42,419
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—


Total	$	3,427	$	13,950	$	6,205	$	8,687	$	1,747	$	21	$	8,354	$	28	$	42,419
Current period gross charge-offs	$	—	$	3	$	—	$	66	$	—	$	—	$	52	$	—	$	121
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		253		—		—		—		—		—		—		—		253
Total	$	253	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	253
Current period gross charge-offs	$	182	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	182
Other loans
Pass	$	69	$	10,176	$	—	$	—	$	—	$	2,587	$	55	$	8	$	12,895
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	69	$	10,176	$	—	$	—	$	—	$	2,587	$	55	$	8	$	12,895
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	313,375	$	418,126	$	221,252	$	154,911	$	44,891	$	138,304	$	110,543	$	12,258	$	1,413,660
Special Mention		1,749		11,011		3,749		8,398		3,544		4,428		269		344		33,492
Classified		620		185		2,052		3,001		—		2,094		24		31		8,007
Total	$	315,744	$	429,322	$	227,053	$	166,310	$	48,435	$	144,826	$	110,836	$	12,633	$	1,455,159
Total current period gross charge-offs	$	413	$	210	$	—	$	66	$	—	$	—	$	52	$	—	$	741

Unfunded Commitments: The Company maintains a separate reserve for credit losses on unfunded commitments, which is included in Other Liabilities on the Consolidated Balance Sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded, utilizing the same models and approaches for the Company's other loan portfolio segments, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that maybe drawn prior to the cancellation of the arrangement.

During the three and six months ended June 30, 2024, a reduction to the unfunded commitment reserve of $134 thousand was recorded as a credit to the provision for credit losses in the consolidated income statement. On January 1, 2023, the Company recorded an adjustment for unfunded commitments of $406 thousand for the adoption of ASC 326. For the three and six months ended June 30, 2023, a reduction to the unfunded commitment reserve of $7 thousand and $52 thousand, respectively, was recorded as a credit to the provision for credit losses in the consolidated income statement. The reserve for unfunded commitments at June 30, 2024 and 2023 and December 31, 2023 was $345 thousand, $417 thousand, and $479 thousand, respectively.