Loans And Leases (Tables)

12 Months Ended

Dec. 31, 2023

Recorded Investment In Loans By Portfolio Segment



	December 31, 2023		December 31, 2022
Commercial ⁽¹⁾	$	439,895	$	427,423
Real estate:
Single-family residential		478,224		465,057
Multi-family residential		130,778		104,148
Commercial		433,026		375,092
Construction		190,722		184,122
Consumer:
Home equity lines of credit		35,960		30,748
Other		2,393		1,727
Subtotal		1,710,998		1,588,317
Less: ACL – Loans		(16,865)		(16,062)
Loans and Leases, net	$	1,694,133	$	1,572,255

⁽¹⁾Includes $13,497 and $20,768 of commercial leases at December 31, 2023 and December 31, 2022, respectively.

Activity In ALLL By Portfolio Segment


	December 31, 2023
			Real Estate									Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home equity lines of credit		Other		Total
Allowance for credit losses
Balances, December 31, 2022	$	4,764	$	3,914	$	997	$	3,384	$	2,644	$	333	$	26	$	16,062
Impact of adoption of ASC 326		877		(958)		66		726		(1,019)		(129)		28		(409)
Balances, January 1, 2023 Post-ASC 326 adoption		5,641		2,956		1,063		4,110		1,625		204		54		15,653
Provision of credit losses		933		375		168		(5)		82		126		179		1,858
Recoveries on loans		85		40		-		-		-		4		3		132
Loans charged off		(775)		-		-		-		-		-		(3)		(778)
Balances, December 31, 2023	$	5,884	$	3,371	$	1,231	$	4,105	$	1,707	$	334	$	233	$	16,865

Activity In ALLL Under Prior GAAP


	December 31, 2022
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	4,127	$	3,348	$	827	$	5,034	$	1,744	$	272	$	156	$	15,508
Addition to (reduction in) ‎provision for loan losses		900		547		170		(1,650)		900		50		(130)		787
Charge-offs		(263)		-		-		-		-		-		-		(263)
Recoveries		-		19		-		-		-		11		-		30
Ending balance	$	4,764	$	3,914	$	997	$	3,384	$	2,644	$	333	$	26	$	16,062


	December 31, 2021
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	3,426	$	1,299	$	467	$	9,184	$	2,254	$	276	$	116	$	17,022
Addition to (reduction in) ‎provision for loan losses		645		2,040		360		(4,150)		(510)		(25)		40		(1,600)
Charge-offs		-		(17)		-		-		-		-		-		(17)
Recoveries		56		26		-		-		-		21		-		103
Ending balance	$	4,127	$	3,348	$	827	$	5,034	$	1,744	$	272	$	156	$	15,508

Schedule Of Collateral-Dependent Loans By Loan Segment


	December 31, 2023
	Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial	$	-	$	449	$	449	$	44
Real estate:
Single-family residential		90		-		90		-
Total	$	90	$	449	$	539	$	44

Balance In ALLL And Recorded Investment In Loans By Portfolio Segment And Based On Impairment Method



				Real Estate									Consumer
	Commercial			Single- ‎family			Multi- ‎family		Commercial		Construction		Home Equity ‎lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	⁽¹⁾	$	-	⁽¹⁾	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		4,764			3,914			997		3,384		2,644		333		26		16,062
Total ending allowance balance	$	4,764		$	3,914		$	997	$	3,384	$	2,644	$	333	$	26	$	16,062

Loans:
Individually evaluated for impairment	$	80		$	95		$	-	$	-	$	-	$	-	$	-	$	175
Collectively evaluated for impairment		427,343			464,962			104,148		375,092		184,122		30,748		1,727		1,588,142
Total ending loan balance	$	427,423		$	465,057		$	104,148	$	375,092	$	184,122	$	30,748	$	1,727	$	1,588,317

⁽¹⁾Allowance recorded is less than $1 resulting in rounding to zero.

Individually Evaluated For Impairment By Class Of Loans


At or for the year ended December 31, 2022:
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Real estate:
Commercial:
Owner occupied	$	-	$	-	$	-	$	-	$	-
Total with no allowance recorded		-		-		-		-		-

With an allowance recorded:
Commercial ⁽¹⁾		371		80		-		125		1
Real estate:
Single-family residential ⁽¹⁾		95		95		-		97		5
Commercial:
Non-owner occupied		-		-		-		350		17
Total with an allowance recorded		466		175		-		572		23
Total	$	466	$	175	$	-	$	572	$	23

⁽¹⁾Allowance recorded is less than $1 resulting in rounding to zero


At or for the year ended December 31, 2021:
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Real estate:
Commercial:
Owner occupied	$	-	$	-	$	-	$	-	$	-
Total with no allowance recorded		-		-		-		-		-

With an allowance recorded:
Commercial ⁽¹⁾		485		221		-		241		9
Real estate:
Single-family residential ⁽¹⁾		99		99		-		101		6
Commercial:
Non-owner occupied		2,658		2,658		20		2,688		150
Total with an allowance recorded		3,242		2,978		20		3,030		165
Total	$	3,242	$	2,978	$	20	$	3,030	$	165

⁽¹⁾Allowance recorded is less than $1 resulting in rounding to zero

Recorded Investment In Nonaccrual and Nonperforming Loans By Class Of Loans

The following table presents the recorded investment in non-accrual loans by class of loans at December 31, 2023:



	Non-Accrual Loans		Non-Accrual Loans with no Allowance for Credit Losses
Commercial	$	5,048	$	1,658
Real estate:
Single-family residential		627		627
Consumer:
Home equity lines of credit:		17		17
Other consumer		30		30
Total nonaccrual loans	$	5,722	$	2,332

Of the $5.7 million of nonaccrual loans at December 31, 2023, $1.1 million is guaranteed by the SBA.

The following table presents the recorded investment in nonperforming loans by class of loans as of December 31, 2022:


	2022
Loans past due over 90 days still on accrual	$	-
Nonaccrual loans:
Commercial		99
Real estate:
Single-family residential		641
Commercial:
Consumer:
Home equity lines of credit:
Originated for portfolio		18
Purchased for portfolio		-
Other consumer		3
Total nonaccrual		761
Total nonperforming loans	$	761

Aging Of Recorded Investment In Past Due Loans By Class Of Loans

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2023:


	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or more Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not 90 days or more Past Due
Commercial	$	98	$	-	$	622	$	720	$	439,175	$	4,426
Real estate:
Single-family residential		165		372		563		1,100		477,124		64
Multi-family residential		-		-		-		-		130,778		-
Commercial:
Non-owner occupied		-		-		-		-		228,548		-
Owner occupied		-		-		-		-		183,773		-
Land		-		-		-		-		20,705		-
Construction		-		-		-		-		190,722		-
Consumer:
Home equity lines of credit:
Originated for portfolio		97		-		17		114		35,846		-
Purchased for portfolio		-		-		-		-		-		-
Other		-		-		30		30		2,363		-
Total	$	360	$	372	$	1,232	$	1,964	$	1,709,034	$	4,490

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2022:



	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or more Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not 90 days or more Past Due
Commercial	$	255	$	-	$	99	$	354	$	427,069	$	-
Real estate:
Single-family residential		966		167		563		1,696		463,361		78
Multi-family residential		-		-		-		-		104,148		-
Commercial:
Non-owner occupied		-		-		-		-		169,686		-
Owner occupied		-		-		-		-		172,698		-
Land		-		-		-		-		32,708		-
Construction		-		-		-		-		184,122		-
Consumer:
Home equity lines of credit:
Originated for portfolio		29		-		18		47		30,701		-
Purchased for portfolio		-		-		-		-		-		-
Other		-		-		3		3		1,724		-
Total	$	1,250	$	167	$	683	$	2,100	$	1,586,217	$	78

Nonaccrual Loans As Troubled Debt Restructuring




	2022
Commercial	$	80
Total	$	80

Recorded Investment In Loans By Risk Category And Class Of Loans

‎

The following table summarizes the risk grading of the Company’s loan portfolio by loan class and by year of origination for the years indicated as of December 31, 2023. Consumer and Single-family residential loans are not risk graded. For purposes of this disclosure, those loans are classified in the following manner: loans that are 89 days or less past due and accruing are “performing” loans and loans greater than 89 days past due or in nonaccrual are “nonperforming” loans.


	Term Loans (amortized cost basis by origination year)
	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and Industrial
Pass	$	32,965	$	86,433	$	90,297	$	45,670	$	3,189	$	9,888	$	159,065	$	1,078	$	428,585
Special Mention		-		-		2,807		-		84		-		-		-		2,891
Substandard		-		384		7,537		-		-		-		50		-		7,971
Doubtful		-		448		-		-		-		-		-		-		448
Total Commercial and industrial loans		32,965		87,265		100,641		45,670		3,273		9,888		159,115		1,078		439,895
Current period gross charge-offs		-		564		211		-		-		-		-		-		775
Real estate loans:
Single-family residential
Payment performance
Performing		42,655		131,416		231,379		45,785		9,584		16,778						477,597
Nonperforming		-		-		-		-		-		627		-		-		627
Total Single-family residential loans		42,655		131,416		231,379		45,785		9,584		17,405		-		-		478,224
Multi-family residential
Pass		24,839		8,776		53,815		7,311		15,772		20,265		-		-		130,778
Total Multi-family residential loans		24,839		8,776		53,815		7,311		15,772		20,265		-		-		130,778
Commercial:
Non-owner occupied
Pass		57,092		27,068		61,990		15,085		20,101		45,725		982		-		228,043
Special Mention		-		-		-		-		505		-		-		-		505
Total Non-owner occupied loans		57,092		27,068		61,990		15,085		20,606		45,725		982		-		228,548
Owner occupied
Pass		20,353		55,169		50,210		19,775		18,751		18,768		68		-		183,094
Special Mention		-		-		-		-		679		-		-		-		679
Total Owner occupied loans		20,353		55,169		50,210		19,775		19,430		18,768		68		-		183,773
Land
Pass		7,932		6,037		6,177		-		149		410		-		-		20,705
Total Land loans		7,932		6,037		6,177		-		149		410		-		-		20,705
Construction
Pass		31,739		78,602		61,435		4,174		-		-		14,772		-		190,722
Total Construction loans		31,739		78,602		61,435		4,174		-		-		14,772		-		190,722
Total Real Estate loans		184,610		307,068		465,006		92,130		65,541		102,573		15,822		-		1,232,750
Consumer:
Home equity lines of credit:
Payment performance
Performing		-		-		-		-		-		-		33,510		2,433		35,943
Nonperforming		-		-		-		-		-		-		-		17		17
Total Home equity lines of credit		-		-		-		-		-		-		33,510		2,450		35,960
Other
Payment performance																		-
Performing		-		-		-		12		-		216		2,135		-		2,363
Nonperforming		-		-		-		-		-		-		-		30		30
Total Other consumer loans		-		-		-		12		-		216		2,135		30		2,393
Current period gross charge-offs		-		-		-		-		-		3		-		-		3
Total loans	$	217,575	$	394,333	$	565,647	$	137,812	$	68,814	$	112,677	$	210,582	$	3,558	$	1,710,998
Total current period gross charge-offs	$	-	$	564	$	211	$	-	$	-	$	3	$	-	$	-	$	778

The recorded investment in loans and leases by risk category and by class of loans as of December 31, 2022 and based on the most recent analysis performed follows.


	Not Rated		Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	-	$	422,673	$	4,651	$	19	$	80	$	427,423
Real estate:
Single-family residential		451,939		12,477		-		641		-		465,057
Multi-family residential		-		104,148		-		-		-		104,148
Commercial:
Non-owner occupied		-		168,731		955		-		-		169,686
Owner occupied		-		171,998		700		-		-		172,698
Land		-		32,708		-		-		-		32,708
Construction		3,084		180,520		518		-		-		184,122
Consumer:
Home equity lines of credit:
Originated for portfolio		30,730		-		-		18		-		30,748
Purchased for portfolio		-		-		-		-		-		-
Other		1,724		-		-		3		-		1,727
	$	487,477	$	1,093,255	$	6,824	$	681	$	80	$	1,588,317

Components Of Net Investment In Direct Financing Leases


	December 31, 2023		December 31, 2022
Total minimum lease payments to be received	$	14,343	$	22,533
Less: unearned income		(863)		(1,798)
Plus: indirect initial costs		17		33
Net investment in direct financing leases	$	13,497	$	20,768

Summary Of Future Minimum Lease Payments Receivable


2024	$	5,917
2025		5,097
2026		2,736
2027		543
2028		50
	$	14,343