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Loans And Allowance For Credit Losses | 3 Months Ended
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Mar. 31, 2024
Loans And Allowance For Credit Losses [Abstract] |
Loans And Allowance For Credit Losses | ‎ Note 8 – Loans and allowance for credit losses On January 1, 2023, the Company adopted the amendments within ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Accordingly, the Company’s financials results for reporting periods beginning after January 1, 2023 are presented in accordance with ASC 326 while prior period amounts have not been adjusted and continue to be reported with legacy GAAP. For a detailed discussion of the impact of the adoption of ASU 2016-13 and information related to loans and credit quality, including accounting policies and methodologies used to estimate the allowance for credit losses, see Note 1. The Company’s primary portfolio segments have changed to align with the methodology applied in estimating the allowance for credit losses under CECL and are reflected as such in the disclosures as of and for the period ended March 31, 2024 as provided below. Management determined after the adoption of CECL that the classifications set forth below were appropriate for use in identifying and managing risk in the loan portfolio.
Loan Segments: |  | Loan Classes:
Commercial |  | Commercial and Industrial Loans
Commercial Real Estate |  | Commercial Mortgages – Owner Occupied
|  | Commercial Mortgages – Non-Owner Occupied
|  | Commercial Construction/Land
Consumer |  | Consumer Open-End
|  | Consumer Closed-End
Residential |  | Residential Mortgages
|  | Residential Consumer Construction/Land
‎ Note 8 – Loans and allowance for credit losses (continued) A summary of loans, net of deferred costs of $923 and $961 as of March 31, 2024 and December 31, 2023, respectively, is as follows (dollars in thousands):
| As of |  | As of
| March 31, 2024 |  | December 31, 2023
Commercial | $ 68,257 |  | $ 65,324
Commercial Real Estate: |  |  |
Commercial Mortgages-Owner Occupied | 133,346 |  | 131,519
Commercial Mortgages-Non-Owner Occupied | 172,178 |  | 175,344
Commercial Construction/Land | 22,364 |  | 21,966
Consumer: |  |  |
Consumer Open-End | 48,073 |  | 50,282
Consumer Closed-End | 26,691 |  | 26,235
Residential: |  |  |
Residential Mortgages | 105,417 |  | 106,990
Residential Consumer Construction/Land | 31,709 |  | 31,673
Total loans | $ 608,035 |  | $ 609,333
Less allowance for credit losses | 6,920 |  | 7,412
Net loans | $ 601,115 |  | $ 601,921
‎ Note 8 – Loans and allowance for credit losses (continued) The following table presents the amortized cost basis of collateral dependent loans by loan segment:
Collateral Dependent Loans |  | March 31, 2024
(dollars in thousands) |  | Business/Other Assets |  | Real Estate
Commercial |  | $ 3,969 |  | $ -
Commercial Real Estate |  | - |  | 7,524
Consumer |  | - |  | 327
Residential |  | - |  | 1,101
Total |  | $ 3,969 |  | $ 8,952
Collateral Dependent Loans |  | December 31, 2023
(dollars in thousands) |  | Business/Other Assets |  | Real Estate
Commercial |  | $ 313 |  | $ -
Commercial Real Estate |  | - |  | 3,566
Consumer |  | - |  | 329
Residential |  | - |  | 1,105
Total |  | $ 313 |  | $ 5,000
The following tables present the activity in the allowance for credit losses for the year-to-date periods ended and the distribution of the allowance by segment as of March 31, 2024 and December 31, 2023.
| Allowance for Credit Losses and Recorded Investment in Loans
| (dollars in thousands)
| As of and For the Three Months Ended March 31, 2024
|  |  | Commercial |  |  |  |  |  |
2024 | Commercial |  | Real Estate |  | Consumer |  | Residential |  | Total
Allowance for Credit Losses: |  |  |  |  |  |  |  |  |
Beginning Balance, December 31, 2023 | $ 514 |  | $ 3,985 |  | $ 1,093 |  | $ 1,820 |  | $ 7,412
Charge-Offs | (8) |  | - |  | (57) |  | - |  | (65)
Recoveries | 65 |  | 1 |  | 7 |  | 1 |  | 74
Provision for (recovery of) | 73 |  | (344) |  | (159) |  | (71) |  | (501)
Ending Balance, March 31, 2024 | $ 644 |  | $ 3,642 |  | $ 884 |  | $ 1,750 |  | $ 6,920
| As of and For the Three Months Ended March 31, 2023
|  |  | Commercial |  |  |  |  |  |
2023 | Commercial |  | Real Estate |  | Consumer |  | Residential |  | Total
Allowance for Credit Losses: |  |  |  |  |  |  |  |  |
Beginning Balance, December 31, 2022 | $ 1,102 |  | $ 2,902 |  | $ 904 |  | $ 1,351 |  | $ 6,259
Adoption of ASU 2016-13 | (526) |  | 1,157 |  | 257 |  | 357 |  | 1,245
Charge-Offs | (17) |  | - |  | (16) |  | - |  | (33)
Recoveries | 9 |  | 88 |  | 5 |  | 2 |  | 104
Provision for (recovery of) | 33 |  | (52) |  | 11 |  | 148 |  | 140
Ending Balance, March 31, 2023 | $ 601 |  | $ 4,095 |  | $ 1,161 |  | $ 1,858 |  | $ 7,715
‎ Note 8 – Loans and allowance for credit losses (continued) Credit Quality Indicators The Bank’s internal risk rating system is in place to grade commercial and commercial real estate loans. Category ratings are reviewed periodically by lenders and the credit review area of the Bank based on the borrower’s individual situation. Additionally, internal and external monitoring and review of credits are conducted on an annual basis. Below is a summary and definition of the Bank’s risk rating categories:
RATING 1 |  | Excellent
RATING 2 |  | Above Average
RATING 3 |  | Satisfactory
RATING 4 |  | Acceptable / Low Satisfactory
RATING 5 |  | Monitor
RATING 6 |  | Special Mention
RATING 7 |  | Substandard
RATING 8 |  | Doubtful
RATING 9 |  | Loss
We segregate loans into the above categories based on the following criteria and we review the characteristics of each rating at least annually, generally during the first quarter. The characteristics of these ratings are as follows: “Pass.” These are loans having risk ratings of 1 through 4. Pass loans are to persons or business entities with an acceptable financial condition, appropriate collateral margins, appropriate cash flow to service the existing loan, and an appropriate leverage ratio. The borrower has paid all obligations as agreed and it is expected that this type of payment history will continue. When necessary, acceptable personal guarantors support the loan. “Monitor.” These are loans having a risk rating of 5. Monitor loans have currently acceptable risk but may have the potential for a specific defined weakness in the borrower’s operations and the borrower’s ability to generate positive cash flow on a sustained basis. The borrower’s recent payment history may currently or in the future be characterized by late payments. The Bank’s risk exposure is mitigated by collateral supporting the loan. The collateral is considered to be well-margined, well maintained, accessible and readily marketable. “Special Mention.” These are loans having a risk rating of 6. Special Mention loans have weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the bank’s credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. These loans do warrant more than routine monitoring due to a weakness caused by adverse events. “Substandard.” These are loans having a risk rating of 7. Substandard loans are considered to have specific and well-defined weaknesses that jeopardize the viability of the Bank’s credit extension. The payment history for the loan has been inconsistent and the expected or projected primary repayment source may be inadequate to service the loan. The estimated net liquidation value of the collateral pledged and/or ability of the personal guarantor(s) to pay the loan may not adequately protect the Bank. There is a distinct possibility that the Bank will sustain some loss if the deficiencies associated with the loan are not corrected in the near term. A substandard loan would not automatically meet our definition of impaired unless the loan is significantly past due and the borrower’s performance and financial condition provides evidence that it is probable that the Bank will be unable to collect all amounts due. “Doubtful.” These are loans having a risk rating of 8. Doubtful rated loans have all the weaknesses inherent in a loan that is classified substandard but with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high. “Loss.” These are loans having a risk rating of 9. Loss rated loans are not considered collectible under normal circumstances and there is no realistic expectation for any future payment on the loan. Loss rated loans are fully charged off. ‎ Note 8 – Loans and allowance for credit losses (continued) The table below details the amortized cost of the classes of loans by credit quality indicator and year of origination as of March 31, 2024.
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |
| 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Total |  | Revolving Loans Converted to Term
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 4,868 |  | $ 4,458 |  | $ 4,001 |  | $ 8,892 |  | $ 1,984 |  | $ 21,037 |  | $ 18,579 |  | $ 63,819 |  | $ 35
Special Mention | 80 |  | - |  | - |  | - |  | 128 |  | - |  | 159 |  | 367 |  | -
Substandard | - |  | 954 |  | 17 |  | 230 |  | - |  | 124 |  | 2,530 |  | 3,855 |  | 181
Total | $ 4,948 |  | $ 5,412 |  | $ 4,018 |  | $ 9,122 |  | $ 2,112 |  | $ 21,161 |  | $ 21,268 |  | $ 68,041 |  | $ 216
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Mort. - Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 5,482 |  | $ 9,248 |  | $ 22,450 |  | $ 42,190 |  | $ 7,661 |  | $ 39,290 |  | $ 1,418 |  | $ 127,739 |  | $ 158
Special Mention | - |  | - |  | - |  | - |  | - |  | 449 |  | - |  | 449 |  | -
Substandard | - |  | 94 |  | - |  | 3,036 |  | 45 |  | 1,825 |  | - |  | 5,000 |  | -
Total | $ 5,482 |  | $ 9,342 |  | $ 22,450 |  | $ 45,226 |  | $ 7,706 |  | $ 41,564 |  | $ 1,418 |  | $ 133,188 |  | $ 158
Commercial Mort. - Non-Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 905 |  | $ 12,577 |  | $ 51,521 |  | $ 34,246 |  | $ 10,076 |  | $ 55,672 |  | $ 6,008 |  | $ 171,005 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Substandard | - |  | - |  | - |  | - |  | 1,173 |  | - |  | - |  | 1,173 |  | -
Total | $ 905 |  | $ 12,577 |  | $ 51,521 |  | $ 34,246 |  | $ 11,249 |  | $ 55,672 |  | $ 6,008 |  | $ 172,178 |  | $ -
Commercial Construction/Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 1,721 |  | $ 2,247 |  | $ 787 |  | $ 9,753 |  | $ 2,780 |  | $ 1,074 |  | $ 2,650 |  | $ 21,012 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Substandard | - |  | - |  | 970 |  | 382 |  | - |  | - |  | - |  | 1,352 |  | -
Total | $ 1,721 |  | $ 2,247 |  | $ 1,757 |  | $ 10,135 |  | $ 2,780 |  | $ 1,074 |  | $ 2,650 |  | $ 22,364 |  | $ -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer - Open-End |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ 46,783 |  | $ 46,783 |  | $ 1,049
Special Mention | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Substandard | - |  | - |  | - |  | - |  | - |  | - |  | 241 |  | 241 |  | -
Total | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ 47,024 |  | $ 47,024 |  | $ 1,049
Consumer - Closed-End |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 1,828 |  | $ 5,162 |  | $ 10,725 |  | $ 518 |  | $ 494 |  | $ 7,742 |  | $ - |  | $ 26,469 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | 13 |  | - |  | - |  | 13 |  | -
Substandard | - |  | - |  | - |  | - |  | - |  | 209 |  | - |  | 209 |  | -
Total | $ 1,828 |  | $ 5,162 |  | $ 10,725 |  | $ 518 |  | $ 507 |  | $ 7,951 |  | $ - |  | $ 26,691 |  | $ -
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 2,544 |  | $ 26,225 |  | $ 24,277 |  | $ 9,517 |  | $ 8,861 |  | $ 32,208 |  | $ - |  | $ 103,632 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | - |  | 408 |  | - |  | 408 |  | -
Substandard | - |  | - |  | - |  | - |  | 104 |  | 1,273 |  | - |  | 1,377 |  | -
Total | $ 2,544 |  | $ 26,225 |  | $ 24,277 |  | $ 9,517 |  | $ 8,965 |  | $ 33,889 |  | $ - |  | $ 105,417 |  | $ -
Residential Consumer Constr./Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 1,351 |  | $ 13,009 |  | $ 8,882 |  | $ 3,112 |  | $ 1,186 |  | $ 4,169 |  | $ - |  | $ 31,709 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Substandard | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total | $ 1,351 |  | $ 13,009 |  | $ 8,882 |  | $ 3,112 |  | $ 1,186 |  | $ 4,169 |  | $ - |  | $ 31,709 |  | $ -
Totals: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 18,699 |  | $ 72,926 |  | $ 122,643 |  | $ 108,228 |  | $ 33,042 |  | $ 161,192 |  | $ 75,438 |  | $ 592,168 |  | $ 1,242
Special Mention | 80 |  | - |  | - |  | - |  | 141 |  | 857 |  | 159 |  | 1,237 |  | -
Substandard | - |  | 1,048 |  | 987 |  | 3,648 |  | 1,322 |  | 3,431 |  | 2,771 |  | 13,207 |  | 181
Total | $ 18,779 |  | $ 73,974 |  | $ 123,630 |  | $ 111,876 |  | $ 34,505 |  | $ 165,480 |  | $ 78,368 |  | $ 606,612 |  | $ 1,423
‎ Note 8 – Loans and allowance for credit losses (continued) The table below details the amortized cost of the classes of loans by credit quality indicator and year of origination as of December 31 31, 2023.
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |
| 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving Loans Amortized Cost Basis |  | Total |  | Revolving Loans Converted to Term
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 6,724 |  | $ 4,559 |  | $ 9,091 |  | $ 6,067 |  | $ 2,754 |  | $ 18,429 |  | $ 16,703 |  | $ 64,327 |  | $ 39
Special Mention | 100 |  | - |  | - |  | 132 |  | - |  | - |  | 382 |  | 614 |  | -
Substandard | - |  | 18 |  | 232 |  | - |  | 6 |  | 127 |  | - |  | 383 |  | 181
Total | $ 6,824 |  | $ 4,577 |  | $ 9,323 |  | $ 6,199 |  | $ 2,760 |  | $ 18,556 |  | $ 17,085 |  | $ 65,324 |  | $ 220
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Mort. - Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 10,260 |  | $ 23,120 |  | $ 45,838 |  | $ 7,972 |  | $ 8,988 |  | $ 31,254 |  | $ 1,630 |  | $ 129,062 |  | $ 159
Special Mention | - |  | - |  | - |  | - |  | - |  | 456 |  | - |  | 456 |  | -
Substandard | 94 |  | - |  | - |  | 45 |  | 283 |  | 1,579 |  | - |  | 2,001 |  | -
Total | $ 10,354 |  | $ 23,120 |  | $ 45,838 |  | $ 8,017 |  | $ 9,271 |  | $ 33,289 |  | $ 1,630 |  | $ 131,519 |  | $ 159
Commercial Mort. - Non-Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 13,069 |  | $ 52,341 |  | $ 35,419 |  | $ 10,210 |  | $ 4,397 |  | $ 52,583 |  | $ 6,152 |  | $ 174,171 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Substandard | - |  | - |  | - |  | 1,173 |  | - |  | - |  | - |  | 1,173 |  | -
Total | $ 13,069 |  | $ 52,341 |  | $ 35,419 |  | $ 11,383 |  | $ 4,397 |  | $ 52,583 |  | $ 6,152 |  | $ 175,344 |  | $ -
Commercial Construction/Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 1,848 |  | $ 3,157 |  | $ 9,869 |  | $ 2,842 |  | $ 628 |  | $ 463 |  | $ 2,768 |  | $ 21,575 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Substandard | - |  | - |  | 391 |  | - |  | - |  | - |  | - |  | 391 |  | -
Total | $ 1,848 |  | $ 3,157 |  | $ 10,260 |  | $ 2,842 |  | $ 628 |  | $ 463 |  | $ 2,768 |  | $ 21,966 |  | $ -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer - Open-End |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ 50,042 |  | $ 50,042 |  | $ 1,466
Special Mention | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Substandard | - |  | - |  | - |  | - |  | - |  | - |  | 240 |  | 240 |  | -
Total | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ - |  | $ 50,282 |  | $ 50,282 |  | $ 1,466
Consumer - Closed-End |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 5,587 |  | $ 11,121 |  | $ 588 |  | $ 529 |  | $ 7,647 |  | $ 601 |  | $ - |  | $ 26,073 |  | $ -
Special Mention | - |  | - |  | - |  | 14 |  | - |  | - |  | - |  | 14 |  | -
Substandard | - |  | - |  | - |  | - |  | 32 |  | 116 |  | - |  | 148 |  | -
Total | $ 5,587 |  | $ 11,121 |  | $ 588 |  | $ 543 |  | $ 7,679 |  | $ 717 |  | $ - |  | $ 26,235 |  | $ -
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 26,854 |  | $ 24,740 |  | $ 10,220 |  | $ 9,007 |  | $ 7,161 |  | $ 25,935 |  | $ - |  | $ 103,917 |  | $ -
Special Mention | - |  | - |  | - |  | - |  | - |  | 1,687 |  | - |  | 1,687 |  | -
Substandard | - |  | - |  | - |  | 105 |  | 54 |  | 1,227 |  | - |  | 1,386 |  | -
Total | $ 26,854 |  | $ 24,740 |  | $ 10,220 |  | $ 9,112 |  | $ 7,215 |  | $ 28,849 |  | $ - |  | $ 106,990 |  | $ -
Residential Consumer Construction/Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 10,762 |  | $ 11,341 |  | $ 3,821 |  | $ 1,414 |  | $ 1,896 |  | $ 2,417 |  | $ - |  | $ 31,651 |  | $ -
Special Mention | - |  | - |  | 22 |  | - |  | - |  | - |  | - |  | 22 |  | -
Substandard | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Total | $ 10,762 |  | $ 11,341 |  | $ 3,843 |  | $ 1,414 |  | $ 1,896 |  | $ 2,417 |  | $ - |  | $ 31,673 |  | $ -
Totals: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk Rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ 75,104 |  | $ 130,379 |  | $ 114,846 |  | $ 38,041 |  | $ 33,471 |  | $ 131,682 |  | $ 77,295 |  | $ 600,818 |  | $ 1,664
Special Mention | 100 |  | - |  | 22 |  | 146 |  | - |  | 2,143 |  | 382 |  | 2,793 |  | -
Substandard | 94 |  | 18 |  | 623 |  | 1,323 |  | 375 |  | 3,049 |  | 240 |  | 5,722 |  | 181
Total | $ 75,298 |  | $ 130,397 |  | $ 115,491 |  | $ 39,510 |  | $ 33,846 |  | $ 136,874 |  | $ 77,917 |  | $ 609,333 |  | $ 1,845
‎ Note 8 – Loans and allowance for credit losses (continued) The following table details the current period gross charge-offs of loans by year of origination as of March 31, 2024 and December 31, 2023.
Current Period Gross Charge-Offs by Origination Year (in thousands)
| 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans Amortized Cost Basis | Total | Revolving Loans Converted to Term
Commercial | $ - | $ 8 | $ - | $ - | $ - | $ - | $ - | $ 8 | $ -
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Commercial Mortgages-Owner Occupied | - | - | - | - | - | - | - | - | -
Commercial Mortgages-Non-Owner Occupied | - | - | - | - | - | - | - | - | -
Commercial Construction/Land | - | - | - | - | - | - | - | - | -
Consumer: |  |  |  |  |  |  |  |  |
Consumer Open-End | - | - | - | - | - | 2 | - | 2 | -
Consumer Closed-End | - | - | 55 | - | - | - | - | 55 | -
Residential: |  |  |  |  |  |  |  |  |
Residential Mortgages | - | - | - | - | - | - | - | - | -
Residential Consumer Construction/Land | - | - | - | - | - | - | - | - | -
Total | $ - | $ 8 | $ 55 | $ - | $ - | $ 2 | $ - | $ 65 | $ -
| 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total | Revolving Loans Converted to Term
Commercial | $ - | $ - | $ - | $ 17 | $ - | $ 132 | $ - | $ 149 | $ -
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Commercial Mortgages-Owner Occupied | - | - | - | - | - | - | - | - | -
Commercial Mortgages-Non-Owner Occupied | - | - | - | - | - | - | - | - | -
Commercial Construction/Land | - | - | - | - | - | - | - | - | -
Consumer: |  |  |  |  |  |  |  |  |
Consumer Open-End | - | - | - | - | - | 6 | 7 | 13 | -
Consumer Closed-End | 19 | 33 | 19 | - | - | - | - | 71 | -
Residential: |  |  |  |  |  |  |  |  |
Residential Mortgages | - | - | - | - | - | 3 | - | 3 | -
Residential Consumer Construction/Land | - | - | - | - | - | - | - | - | -
Total | $ 19 | $ 33 | $ 19 | $ 17 | $ - | $ 141 | $ 7 | $ 236 | $ -
‎ Note 8 – Loans and allowance for credit losses (continued) The following tables present nonaccrual information by class of loans as of March 31, 2024 and December 31, 2023. Loans on Nonaccrual Status (dollars in thousands)
| CECL
| March 31, 2024
| Nonaccrual Loans
| With No Allowance | With an Allowance | Total
Commercial Real Estate: |  |  |
Commercial Construction/Land | $ 382 | - | $ 382
Consumer |  |  |
Consumer Open-End | 24 | - | 24
Consumer Closed-End | 152 | - | 152
Total | $ 558 | $ - | $ 558
| CECL
| December 31, 2023
| Nonaccrual Loans
| With No Allowance | With an Allowance | Total
Commercial Real Estate: |  |  |
Commercial Construction/Land | $ 391 | - | $ 391
‎ Note 8 – Loans and allowance for credit losses (continued) The following tables present an aging analysis of the loan portfolio by class and past due as of March 31, 2024 and December 31, 2023.
Age Analysis of Past Due Loans as of March 31, 2024
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Recorded
|  |  |  |  |  |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  | Investment
2024 |  | 30-59 Days |  |  | 60-89 Days |  |  | than |  |  | Total Past |  |  |  |  |  | Total |  |  | > 90 Days &
|  | Past Due |  |  | Past Due |  |  | 90 Days |  |  | Due |  |  | Current |  |  | Loans |  |  | Accruing
Commercial | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 68,257 |  | $ | 68,257 |  | $ | —
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Mortgages-Owner Occupied |  | 199 |  |  | — |  |  | — |  |  | 199 |  |  | 133,147 |  |  | 133,346 |  |  | —
Commercial Mortgages-Non-Owner Occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 172,178 |  |  | 172,178 |  |  | —
Commercial Construction/Land |  | — |  |  | — |  |  | — |  |  | — |  |  | 22,364 |  |  | 22,364 |  |  | —
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer Open-End |  | 193 |  |  | — |  |  | 24 |  |  | 217 |  |  | 47,856 |  |  | 48,073 |  |  | —
Consumer Closed-End |  | 19 |  |  | — |  |  | 86 |  |  | 105 |  |  | 26,586 |  |  | 26,691 |  |  | —
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Mortgages |  | 1,105 |  |  | 74 |  |  | — |  |  | 1,179 |  |  | 104,238 |  |  | 105,417 |  |  | —
Residential Consumer Construction/Land |  | 6 |  |  | — |  |  | — |  |  | 6 |  |  | 31,703 |  |  | 31,709 |  |  | —
Total | $ | 1,522 |  | $ | 74 |  | $ | 110 |  | $ | 1,706 |  | $ | 606,329 |  | $ | 608,035 |  | $ | —
Age Analysis of Past Due Loans as of December 31, 2023
2023 |  |  |  |  |  |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  | Investment
|  | 30-59 Days |  |  | 60-89 Days |  |  | than |  |  | Total Past |  |  |  |  |  | Total |  |  | > 90 Days &
|  | Past Due |  |  | Past Due |  |  | 90 Days |  |  | Due |  |  | Current |  |  | Loans |  |  | Accruing
Commercial | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 65,324 |  | $ | 65,324 |  | $ | —
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Mortgages-Owner Occupied |  | 91 |  |  | — |  |  | — |  |  | 91 |  |  | 131,428 |  |  | 131,519 |  |  | —
Commercial Mortgages-Non-Owner Occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 175,344 |  |  | 175,344 |  |  | —
Commercial Construction/Land |  | — |  |  | — |  |  | — |  |  | — |  |  | 21,966 |  |  | 21,966 |  |  | —
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer Open-End |  | 357 |  |  | — |  |  | — |  |  | 357 |  |  | 49,925 |  |  | 50,282 |  |  | —
Consumer Closed-End |  | 126 |  |  | 89 |  |  | — |  |  | 215 |  |  | 26,020 |  |  | 26,235 |  |  | —
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Mortgages |  | 396 |  |  | — |  |  | — |  |  | 396 |  |  | 106,594 |  |  | 106,990 |  |  | —
Residential Consumer Construction/Land |  | — |  |  | — |  |  | — |  |  | — |  |  | 31,673 |  |  | 31,673 |  |  | —
Total | $ | 970 |  | $ | 89 |  | $ | — |  | $ | 1,059 |  | $ | 608,274 |  | $ | 609,333 |  | $ | —
‎ Note 8 – Loans and allowance for credit losses (continued) Occasionally, the Bank modifies loans to borrowers experiencing financial difficulties by providing principal forgiveness, term extensions, interest rate reductions or payment deferrals. As the effect of most modifications is already included in the allowance for credit losses due to the measurement methodologies used in its estimate, the allowance for credit losses is typically not adjusted upon modification. When principal forgiveness is provided at modification, the amount forgiven is charged against the allowance for credit losses. There were no loan modifications to borrowers experiencing financial difficulty during the three-months ended March 31, 2024 or March 31, 2023. As of March 31, 2024, no previously modified loans have defaulted in the last twelve months. ACL on Unfunded Commitments The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable by the Company. The allowance for off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit losses in the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for loan credit losses. The allowance for credit losses for unfunded loan commitments of $613,000 at March 31, 2024, is separately classified within Other Liabilities on the Consolidated Balance Sheets. The following table presents the balance and activity in the ACL for unfunded commitments for the three-months ended March 31, 2024 and March 31, 2023:
Allowance for Credit Losses on Unfunded Commitments |
Balance, December 31, 2023 | $ 665
Recovery of credit losses | (52)
Balance March 31, 2024 | $ 613
Balance, December 31, 2022 | $ -
Adoption of ASU 2016-13 | 779
Provision for credit losses | 30
Balance March 31, 2023 | $ 809
‎ Note 8 – Loans and allowance for credit losses (continued) Other Real Estate Owned We also classify other real estate owned (OREO) as a nonperforming asset. OREO represents real property owned by the Bank which was acquired through purchase at foreclosure or from the borrower through a deed in lieu of foreclosure. There were no OREO properties on March 31, 2024 and December 31, 2023. The following table represents the changes in OREO balance during the three-months ended March 31, 2024 and year ended December 31, 2023. OREO Changes (dollars in thousands)
| Three-months Ended Year Ended
| March 31, 2024 |  | December 31, 2023
Balance at the beginning of the year (net) | $ | — |  | $ | 566
Transfers from loans |  | — |  |  | —
Capitalized costs |  | — |  |  | —
Valuation adjustments |  | — |  |  | (23)
Sales proceeds |  | — |  |  | (540)
Loss on disposition |  | — |  |  | (3)
Balance at the end of the period (net) | $ | — |  | $ | —
At March 31, 2024 and December 31, 2023, the Company had no consumer mortgage loans secured by residential real estate for which foreclosure was in process. The Company held no residential real estate properties in other real estate owned as of March 31, 2024 and December 31, 2023.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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