Loans And Leases (Tables)

6 Months Ended

Jun. 30, 2024

Recorded Investment In Loans By Portfolio Segment




	June 30, 2024		December 31, 2023
	(unaudited)
Commercial ⁽¹⁾	$	422,011	$	439,895
Real estate:
Single-family residential		467,802		478,224
Multi-family residential		128,332		130,778
Commercial		459,860		433,026
Construction		184,899		190,722
Consumer:
Home equity lines of credit		40,884		35,960
Other		3,192		2,393
Subtotal		1,706,980		1,710,998
Less: ACL – Loans		(19,285)		(16,865)
Loans and leases, net	$	1,687,695	$	1,694,133

⁽¹⁾Includes $10,423 and $13,497 of commercial leases at June 30, 2024 and December 31, 2023, respectively.

Activity In ALLL By Portfolio Segment


	Three Months Ended June 30, 2024 (unaudited)
			Real Estate									Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home equity lines of credit		Other		Total
Allowance for credit losses
Balances, April 1, 2024	$	7,518	$	3,331	$	1,147	$	4,298	$	1,279	$	335	$	290	$	18,198
Provision of credit losses		3,105		(32)		(132)		(10)		(43)		46		261		3,195
Recoveries on loans		6		7		-		-		-		2		-		15
Loans charged off		(1,873)		-		-		-		-		-		(250)		(2,123)
Balances, June 30, 2024	$	8,756	$	3,306	$	1,015	$	4,288	$	1,236	$	383	$	301	$	19,285


	Six Months Ended June 30, 2024 (unaudited)
			Real Estate									Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home equity lines of credit		Other		Total
Allowance for credit losses
Balances, January 1, 2024	$	5,884	$	3,371	$	1,231	$	4,105	$	1,707	$	334	$	233	$	16,865
Provision of credit losses		4,733		(80)		(216)		183		(471)		45		318		4,512
Recoveries on loans		12		15		-		-		-		4		-		31
Loans charged off		(1,873)		-		-		-		-		-		(250)		(2,123)
Balances, June 30, 2024	$	8,756	$	3,306	$	1,015	$	4,288	$	1,236	$	383	$	301	$	19,285

‎


	Three Months Ended June 30, 2023 (unaudited)
			Real Estate									Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home equity lines of credit		Other		Total
Allowance for credit losses
Balances, April 1, 2023	$	5,438	$	3,194	$	1,045	$	4,123	$	1,679	$	331	$	105	$	15,915
Provision of credit losses		(184)		(112)		(96)		(44)		422		(9)		(40)		(63)
Recoveries on loans		85		19		-		-		-		1		3		108
Balances, June. 30, 2023	$	5,339	$	3,101	$	949	$	4,079	$	2,101	$	323	$	68	$	15,960


	Six Months Ended June 30, 2023 (unaudited)
			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		(382)		123		(114)		(31)		476		118		14		204
Recoveries on loans		85		22		-		-		-		1		3		111
Loans charged off		(5)		-		-		-		-		-		(3)		(8)
Balances, June 30, 2023	$	5,339	$	3,101	$	949	$	4,079	$	2,101	$	323	$	68	$	15,960

Schedule Of Collateral-Dependent Loans By Loan Segment


	June 30, 2024 (unaudited)
	Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial	$	-	$	1,760	$	1,760	$	511
Real estate:
Single-family residential		88		-		88		-
Total	$	88	$	1,760	$	1,848	$	511

‎


	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

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 June 30, 2024 (unaudited):



	Non-Accrual Loans		Non-Accrual loans with no Allowance for Credit Losses
Commercial	$	9,328	$	233
Real estate:
Single-family residential		1,537		1,537
Consumer:
Home equity lines of credit:		14		14
Other consumer		30		30
Total nonaccrual loans	$	10,909	$	1,814

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

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 June 30, 2024 (unaudited):


	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	$	53	$	4,095	$	1,931	$	6,079	$	415,932	$	7,397
Real estate:
Single-family residential		-		547		936		1,483		466,319		601
Multi-family residential		-		-		-		-		128,332		-
Commercial:
Non-owner occupied		-		-		-		-		239,862		-
Owner occupied		-		-		-		-		202,951		-
Land		-		-		-		-		17,047		-
Construction		-		-		-		-		184,899		-
Consumer:
Home equity lines of credit:		28		-		-		28		40,856		14
Other		-		-		30		30		3,162		-
Total	$	81	$	4,642	$	2,897	$	7,620	$	1,699,360	$	8,012

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

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 June 30, 2024. 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)
(unaudited)	2024		2023		2022		2021		2020		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial
Pass	$	14,708	$	31,749	$	76,526	$	87,176	$	44,153	$	11,859	$	136,588	$	3,944	$	406,703
Special Mention		-		-		7,000		-		-		81		-		-		7,081
Substandard		-		-		485		7,692		-		-		50		-		8,227
Total Commercial		14,708		31,749		84,011		94,868		44,153		11,940		136,638		3,944		422,011
Current period gross charge-offs		-		-		1,755		118		-		-		-		-		1,873
Real estate loans:
Single-family residential
Payment performance
Performing		12,372		35,622		126,041		223,580		44,062		24,588		-		-		466,265
Nonperforming		-		547		372		-		-		618		-		-		1,537
Total Single-family residential loans		12,372		36,169		126,413		223,580		44,062		25,206		-		-		467,802
Multi-family residential
Pass		-		24,822		8,724		52,081		7,249		35,456		-		-		128,332
Total Multi-family residential loans		-		24,822		8,724		52,081		7,249		35,456		-		-		128,332
Commercial:
Non-owner occupied
Pass		10,189		52,955		33,731		68,558		14,486		59,438		-		-		239,357
Special Mention		-		-		-		-		-		505		-		-		505
Total Non-owner occupied loans		10,189		52,955		33,731		68,558		14,486		59,943		-		-		239,862
Owner occupied
Pass		5,408		23,518		69,781		48,651		19,365		35,549		-		-		202,272
Special Mention		-		-		-		-		-		679		-		-		679
Total Owner occupied loans		5,408		23,518		69,781		48,651		19,365		36,228		-		-		202,951
Land
Pass		5,895		4,792		401		5,456		-		503		-		-		17,047
Total Land loans		5,895		4,792		401		5,456		-		503		-		-		17,047
Construction
Pass		10,196		42,810		69,360		58,903		3,630		-		-		-		184,899
Total Construction loans		10,196		42,810		69,360		58,903		3,630		-		-		-		184,899
Total Real Estate loans		44,060		185,066		308,410		457,229		88,792		157,336		-		-		1,240,893
Consumer:
Home equity lines of credit:
Payment performance
Performing		-		-		-		-		-		-		37,218		3,652		40,870
Nonperforming		-		-		-		-		-		-		-		14		14
Total Home equity lines of credit		-		-		-		-		-		-		37,218		3,666		40,884
Other
Payment performance																		-
Performing		497		-		-		-		9		187		2,469		-		3,162
Nonperforming		-		-		-		-		-		-		30		-		30
Total Other consumer loans		497		-		-		-		9		187		2,499		-		3,192
Current period gross charge-offs		-		-		-		-		-		-		250		-		250
Total loans	$	59,265	$	216,815	$	392,421	$	552,097	$	132,954	$	169,463	$	176,355	$	7,610	$	1,706,980
Total current period gross charge-offs	$	-	$	-	$	1,755	$	118	$	-	$	-	$	250	$	-	$	2,123

‎

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
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		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

Components Of Net Investment In Direct Financing Leases


	June 30, 2024		December 31, 2023
	(unaudited)
Total minimum lease payments to be received	$	10,976	$	14,343
Less: Unearned income		(564)		(863)
Plus: Indirect initial costs		11		17
Net investment in direct financing leases	$	10,423	$	13,497

Summary Of Future Minimum Lease Payments Receivable


2024, excluding the six months ended June 30, 2024	$	2,827
2025		4,899
2026		2,657
2027		543
2028		50
Thereafter		-
Total future minimum payments	$	10,976