XML 33 R23.htm IDEA: XBRL DOCUMENT

Note 5 - Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

(dollars in thousands)		*June 30, 2023*				December 31, 2022
Commercial and industrial:
Commercial		$	135,164			$	141,122
Municipal			77,018				72,996
Commercial real estate:
Non-owner occupied			314,838				318,296
Owner occupied			294,718				284,677
Construction			39,057				24,005
Consumer:
Home equity installment			58,623				59,118
Home equity line of credit			52,501				52,568
Auto loans - Recourse			11,924				12,929
Auto loans - Non-recourse			121,230				114,909
Direct finance leases			34,691				33,223
Other			13,882				11,709
Residential:
Real estate			429,816				398,136
Construction			48,087				42,232
Total			1,631,549				1,565,920
Less:
Allowance for credit losses on loans			(18,350	)			(17,149	)
Unearned lease revenue			(1,885	)			(1,746	)
Loans and leases, net		$	1,611,314			$	1,547,025

Schedule of Unamortized Net Costs and Premiums Included in Loans [Table Text Block]

(dollars in thousands)		*June 30, 2023*				December 31, 2022
Net unamortized fair value mark discount on acquired loans		$	(7,369	)		$	(9,064	)
Net unamortized deferred loan origination costs			4,919				4,630
Total		$	(2,450	)		$	(4,434	)

Financing Receivable, Nonaccrual [Table Text Block]

(dollars in thousands)		Nonaccrual With No Allowance for Credit Loss				Nonaccrual With Allowance for Credit Loss				Total Nonaccrual				Loans Past Due Over 89 Days Still Accruing
At June 30, 2023
Commercial and industrial:
Commercial		$	619			$	17			$	636			$	-
Municipal			-				-				-				-
Commercial real estate:
Non-owner occupied			168				-				168				-
Owner occupied			1,841				296				2,137				-
Consumer:
Home equity installment			54				48				102				-
Home equity line of credit			90				-				90				-
Auto loans - Recourse			9				-				9				-
Auto loans - Non-recourse			39				45				84				-
Direct finance leases			-				-				-				47
Other			1				-				1				-
Residential:
Real estate			83				183				266				-
Total		$	2,904			$	589			$	3,493			$	47

(dollars in thousands)		Nonaccrual With No Allowance for Credit Loss				Nonaccrual With Allowance for Credit Loss				Total Nonaccrual				Loans Past Due Over 89 Days Still Accruing
At December 31, 2022
Commercial and industrial:
Commercial		$	580			$	139			$	719			$	-
Municipal			-				-				-				-
Commercial real estate:
Non-owner occupied			168				215				383				-
Owner occupied			716				350				1,066				-
Consumer:
Home equity installment			-				-				-				-
Home equity line of credit			211				-				211				-
Auto loans - Recourse			135				18				153				-
Auto loans - Non-recourse			-				-				-				16
Direct finance leases			-				-				-				17
Other			-				-				-				-
Residential:
Real estate			3				-				3				-
Total		$	1,813			$	722			$	2,535			$	33

Financing Receivable, Modified [Table Text Block]

		Loans modified for the six months ended:
(dollars in thousands)		June 30, 2023
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction				Combination Term Extension and Principal Forgiveness				Combination Term Extension Interest Rate Reduction				Total Class of Financing Receivable
Commercial and industrial:
Commercial		$	-			$	46			$	-			$	-			$	-			$	-				0.03	%
Commercial real estate:
Non-owner occupied			-				-				915				3,191				-				-				1.30	%
Total		$	-			$	46			$	915			$	3,191			$	-			$	-

(dollars in thousands)

June 30, 2023

Principal Forgiveness

Weighted-Average Interest Rate Reduction

Weighted-Average Term Extension (Months)

Commercial real estate:

Non-owner occupied

$

-

6.13

%

8.8

Total

$

-

6.13

%

8.8

Financing Receivable, Past Due [Table Text Block]

																											Recorded
										Past due																	investment past
		30 - 59 Days				60 - 89 Days				90 days				Total								Total					due ≥ 90 days
June 30, 2023		past due				past due				or more ⁽¹⁾				past due				Current				loans ⁽³⁾					and accruing

Commercial and industrial:
Commercial		$	11				-				636			$	647			$	134,517			$	135,164				$	-
Municipal			-				-				-				-				77,018				77,018
Commercial real estate:
Non-owner occupied			91				-				168				259				314,579				314,838					-
Owner occupied			104				-				2,137				2,241				292,477				294,718					-
Construction			-				-				-				-				39,057				39,057					-
Consumer:
Home equity installment			136				-				102				238				58,385				58,623					-
Home equity line of credit			172				199				90				461				52,040				52,501					-
Auto loans - Recourse			46				4				9				59				11,865				11,924					-
Auto loans - Non-recourse			90				27				84				201				121,029				121,230					-
Direct finance leases			170				33				47				250				32,556				32,806		*(2)*			47
Other			28				5				1				34				13,848				13,882					-
Residential:
Real estate			32				-				266				298				429,518				429,816					-
Construction			-				-				-				-				48,087				48,087					-
Total		$	880			$	268			$	3,540			$	4,688			$	1,624,976			$	1,629,664				$	47

																										Recorded
										Past due																investment past
		30 - 59 Days				60 - 89 Days				90 days				Total								Total				due ≥ 90 days
December 31, 2022		past due				past due				or more ⁽¹⁾				past due				Current				loans⁽³⁾				and accruing

Commercial and industrial
Commercial		$	-			$	-			$	719			$	719			$	140,403			$	141,122			$	-
Municipal			-				-				-				-				72,996				72,996				-
Commercial real estate:
Non-owner occupied			-				-				383				383				317,913				318,296				-
Owner occupied			42				-				1,066				1,108				283,569				284,677				-
Construction			-				-				-				-				24,005				24,005				-
Consumer:
Home equity installment			239				-				-				239				58,879				59,118				-
Home equity line of credit			110				151				211				472				52,096				52,568				-
Auto loans - Recourse			152				115				11				278				12,651				12,929				-
Auto loans - Non-recourse			411				86				158				655				114,254				114,909				16
Direct finance leases			186				-				17				203				31,274				31,477	⁽²⁾			17
Other			12				7				-				19				11,690				11,709				-
Residential:
Real estate			-				327				3				330				397,806				398,136				-
Construction			-				-				-				-				42,232				42,232				-
Total		$	1,152			$	686			$	2,568			$	4,406			$	1,559,768			$	1,564,174			$	33

Impaired Financing Receivables [Table Text Block]

						Recorded				Recorded
		Unpaid				investment				investment				Total
		principal				with				with no				recorded				Related
(dollars in thousands)		balance				allowance				allowance				investment				allowance
December 31, 2022
Commercial and industrial		$	942			$	139			$	580			$	719			$	48
Commercial real estate:
Non-owner occupied			762				215				547				762				42
Owner occupied			2,347				1,304				716				2,020				70
Consumer:
Home equity installment			33				-				-				-				-
Home equity line of credit			255				-				211				211				-
Auto loans			213				18				135				153				1
Residential:
Real estate			50				-				3				3				-
Total		$	4,602			$	1,676			$	2,192			$	3,868			$	161

		For the six months ended
		June 30, 2022
										Cash basis
		Average				Interest				interest
		recorded				income				income
(dollars in thousands)		investment				recognized				recognized

Commercial and industrial		$	329			$	-			$	-
Commercial real estate:
Non-owner occupied			1,958				52				-
Owner occupied			2,043				53				-
Construction			-				-				-
Consumer:
Home equity installment			11				-				-
Home equity line of credit			133				-				-
Auto loans			108				3				-
Direct finance leases			-				-				-
Other			-				-				-
Residential:
Real estate			430				39				-
Construction			-				-				-
Total		$	5,012			$	147			$	-

		For the three months ended
		June 30, 2022
										Cash basis
		Average				Interest				interest
		recorded				income				income
(dollars in thousands)		investment				recognized				recognized

Commercial and industrial		$	420			$	-			$	-
Commercial real estate:
Non-owner occupied			983				6				-
Owner occupied			2,270				27				-
Construction			-				-				-
Consumer:
Home equity installment			2				-				-
Home equity line of credit			169				-				-
Auto loans			188				1				-
Direct finance leases			-				-
Other			-				-				-
Residential:
Real estate			89				14				-
Construction			-				-				-
Total		$	4,121			$	48			$	-

Financing Receivable Credit Quality Indicators [Table Text Block]

(dollars in thousands)		2023				2022				2021				2020				2019				Prior				Revolving Loans Amortized Cost Basis				Revolving Loans Converted to Term				Total
Commercial and industrial
Risk Rating
Pass		$	10,316			$	21,350				25,623				8,841				8,863				13,049				43,383			$	-			$	131,425
Special Mention			-				695				342				-				-				72				96				-				1,205
Substandard			-				171				16				24				67				295				1,961				-				2,534
Doubtful			-				-				-				-				-				-				-				-				-
Total commercial and industrial		$	10,316			$	22,216			$	25,981			$	8,865			$	8,930			$	13,416			$	45,440			$	-			$	135,164
Commercial and industrial:
Current period gross write-offs		$	-			$	-			$	300			$	20			$	-			$	-			$	-			$	-			$	320
Commercial and industrial - municipal
Risk Rating
Pass		$	3,310			$	20,621			$	19,175			$	13,498			$	1,450			$	18,964			$	-			$	-			$	77,018
Special Mention			-				-				-				-				-				-				-				-				-
Substandard			-				-				-				-				-				-				-				-				-
Doubtful			-				-				-				-				-				-				-				-				-
Total commercial and industrial - municipal		$	3,310			$	20,621			$	19,175			$	13,498			$	1,450			$	18,964			$	-			$	-			$	77,018
Commercial and industrial - municipal:
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Commercial real estate - non-owner occupied
Risk Rating
Pass		$	19,532			$	36,420			$	78,793				45,289				17,938				94,378			$	9,040			$	-			$	301,390
Special Mention			-				65				1,659				324				493				2,220				-				-				4,761
Substandard			-				-				478				136				86				7,987				-				-				8,687
Doubtful			-				-				-				-				-				-				-				-				-
Total commercial real estate - non-owner occupied		$	19,532			$	36,485			$	80,930			$	45,749			$	18,517			$	104,585			$	9,040			$	-			$	314,838
Commercial real estate - non-owner occupied:
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	32			$	-			$	-			$	32
Commercial real estate - owner occupied
Risk Rating
Pass		$	20,866				54,992				49,403				31,605				26,078				87,995			$	9,985			$	-			$	280,924
Special Mention			-				237				611				27				-				306				125				-				1,306
Substandard			702				-				331				-				-				10,838				617				-				12,488
Doubtful			-				-				-				-				-				-				-				-				-
Total commercial real estate - owner occupied		$	21,568			$	55,229			$	50,345			$	31,632			$	26,078			$	99,139			$	10,727			$	-			$	294,718
Commercial real estate - owner occupied:
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Commercial real estate - construction
Risk Rating
Pass		$	4,064			$	28,673			$	861			$	-			$	-			$	2,335			$	3,124			$	-			$	39,057
Special Mention			-				-				-				-				-				-				-				-				-
Substandard			-				-				-				-				-				-				-				-				-
Doubtful			-				-				-				-				-				-				-				-				-
Total commercial real estate - construction		$	4,064			$	28,673			$	861			$	-			$	-			$	2,335			$	3,124			$	-			$	39,057
Commercial real estate - construction:
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

(dollars in thousands)		2023				2022				2021				2020				2019				Prior				Revolving Loans Amortized Cost Basis				Revolving Loans Converted to Term				Total
Home equity installment
Payment performance
Performing		$	5,192			$	19,134			$	10,606			$	9,386			$	4,302			$	9,901			$	-			$	-			$	58,521
Non-performing			-				-				-				-				-				102				-				-				102
Total home equity installment		$	5,192			$	19,134			$	10,606			$	9,386			$	4,302			$	10,003			$	-			$	-			$	58,623
Home equity installment
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Home equity line of credit
Payment performance
Performing		$	-			$	-			$	-			$	-			$	-			$	-			$	41,542			$	10,869			$	52,411
Non-performing			-				-				-				-				-				-				90				-				90
Total home equity line of credit		$	-			$	-			$	-			$	-			$	-			$	-			$	41,632			$	10,869			$	52,501
Home equity line of credit
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Auto loans - recourse
Payment performance
Performing		$	2,034			$	2,431			$	3,587			$	2,451			$	1,079			$	333			$	-			$	-			$	11,915
Non-performing			-				-				-				-				-				9				-				-				9
Total auto loans - recourse		$	2,034			$	2,431			$	3,587			$	2,451			$	1,079			$	342			$	-			$	-			$	11,924
Auto loans - recourse
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Auto loans - non-recourse
Payment performance
Performing		$	29,298			$	50,112			$	21,359			$	10,670			$	6,356			$	3,351			$	-			$	-			$	121,146
Non-performing			-				-				-				70				-				14				-				-				84
Total auto loans - non-recourse		$	29,298			$	50,112			$	21,359			$	10,740			$	6,356			$	3,365			$	-			$	-			$	121,230
Auto loans - non-recourse
Current period gross write-offs		$	-			$	-			$	78			$	17			$	13			$	-			$	-			$	-			$	108
Direct finance leases ⁽¹⁾
Payment performance
Performing		$	7,103			$	13,310			$	9,036			$	2,997			$	266			$	47			$	-			$	-			$	32,759
Non-performing			-				31				16				-				-				-				-				-				47
Total direct finance leases		$	7,103			$	13,341			$	9,052			$	2,997			$	266			$	47			$	-			$	-			$	32,806
Direct finance leases
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Consumer - other
Payment performance
Performing		$	3,686			$	4,003			$	2,228			$	899			$	634			$	1,029			$	1,402			$	-			$	13,881
Non-performing			-				-				-				-				-				1				-				-				1
Total consumer - other		$	3,686			$	4,003			$	2,228			$	899			$	634			$	1,030			$	1,402			$	-			$	13,882
Consumer - other
Current period gross write-offs		$	49			$	53			$	6			$	5			$	11			$	13			$	-			$	-			$	137
Residential real estate
Payment performance
Performing		$	29,359			$	62,556			$	136,270			$	52,384			$	31,128			$	117,853			$	-			$	-			$	429,550
Non-performing			-				-				-				-				-				266				-				-				266
Total residential real estate		$	29,359			$	62,556			$	136,270			$	52,384			$	31,128			$	118,119			$	-			$	-			$	429,816
Residential real estate
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Residential - construction
Payment performance
Performing		$	2,227			$	28,031			$	12,749			$	4,218			$	422			$	440			$	-			$	-			$	48,087
Non-performing			-				-				-				-				-				-				-				-				-
Total residential - construction		$	2,227			$	28,031			$	12,749			$	4,218			$	422			$	440			$	-			$	-			$	48,087
Residential - construction
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

		December 31, 2022
(dollars in thousands)			Pass				Special mention				Substandard				Doubtful				Total

Commercial and industrial		$	231,614			$	229			$	2,635			$	-			$	234,478
Commercial real estate - non-owner occupied			301,386				4,227				11,254				-				316,867
Commercial real estate - owner occupied			255,921				803				14,086				-				270,810
Commercial real estate - construction			18,941				-				-				-				18,941
Total commercial		$	807,862			$	5,259			$	27,975			$	-			$	841,096

		December 31, 2022
(dollars in thousands)		Performing				Non-performing				Total

Consumer
Home equity installment		$	59,118			$	-			$	59,118
Home equity line of credit			52,357				211				52,568
Auto loans			131,767				169				131,936
Direct finance leases ⁽²⁾			31,460				17				31,477
Other			7,611				-				7,611
Total consumer			282,313				397				282,710
Residential
Real estate			398,133				3				398,136
Construction			42,232				-				42,232
Total residential			440,365				3				440,368
Total consumer & residential		$	722,678			$	400			$	723,078

Schedule of Collateral Dependent Loans [Table Text Block]

(dollars in thousands)		Real Estate				Other				Total Collateral-Dependent Non-Accrual Loans
At June 30, 2023
Commercial and industrial:
Commercial		$	-			$	636			$	636
Municipal			-				-				-
Commercial real estate:
Non-owner occupied			167				-				167
Owner occupied			2,138				-				2,138
Consumer:
Home equity installment			102				-				102
Home equity line of credit			90				-				90
Auto loans - Recourse			-				9				9
Auto loans - Non-recourse			-				84				84
Direct finance leases			-				-				-
Other			-				1				1
Residential:
Real estate			266				-				266
Total		$	2,763			$	730			$	3,493

Financing Receivable, Allowance for Credit Loss [Table Text Block]

*As of and for the six months ended June 30, 2023*
		Commercial &				Commercial									Residential
(dollars in thousands)		industrial				real estate				Consumer					real estate				Unallocated				Total
Allowance for Credit Losses:
Beginning balance		$	2,924			$	7,162			$	2,827				$	4,169			$	67			$	17,149
Impact of adopting ASC 326			278				756				(547	)				198				(67	)			618
Initial allowance on loans purchased with credit deterioration			-				126				-					-				-				126
Charge-offs			(320	)			(32	)			(245	)				-				-				(597	)
Recoveries			22				41				126					10				-				199
Provision (credit) for loan losses			(543	)			525				353					470				50				855
Ending balance		$	2,361			$	8,578			$	2,514				$	4,847			$	50			$	18,350
Ending balance: individually evaluated		$	16			$	219			$	56				$	4			$	-			$	295
Ending balance: collectively evaluated		$	2,345			$	8,359			$	2,458				$	4,843			$	50			$	18,055
Loans Receivables:
Ending balance ⁽²⁾		$	212,182			$	648,613			$	290,966		*(1)*		$	477,903			$	-			$	1,629,664
Ending balance: individually evaluated		$	668			$	7,000			$	286				$	609			$	-			$	8,563
Ending balance: collectively evaluated		$	211,514			$	641,613			$	290,680				$	477,294			$	-			$	1,621,101

*As of and for the three months ended June 30, 2023*
		Commercial &				Commercial								Residential
(dollars in thousands)		industrial				real estate				Consumer				real estate				Unallocated				Total
Allowance for Loan Losses:
Beginning balance		$	2,550			$	8,157			$	2,448			$	4,683			$	72			$	17,910
Charge-offs			(150	)			-				(143	)			-				-				(293	)
Recoveries			1				2				55				-				-				58
Provision			(40	)			419				154				164				(22	)			675
Ending balance		$	2,361			$	8,578			$	2,514			$	4,847			$	50			$	18,350

As of and for the year ended December 31, 2022
		Commercial &				Commercial									Residential
(dollars in thousands)		industrial				real estate				Consumer					real estate				Unallocated				Total
Allowance for Loan Losses:
Beginning balance		$	2,204			$	7,422			$	2,404				$	3,508			$	86			$	15,624
Charge-offs			(371	)			(67	)			(377	)				-				-				(815	)
Recoveries			11				153				74					2				-				240
Provision			1,080				(346	)			726					659				(19	)			2,100
Ending balance		$	2,924			$	7,162			$	2,827				$	4,169			$	67			$	17,149
Ending balance: individually evaluated for impairment		$	48			$	112			$	1				$	-			$	-			$	161
Ending balance: collectively evaluated for impairment		$	2,876			$	7,050			$	2,826				$	4,169			$	67			$	16,988
Loans Receivables:
Ending balance ⁽²⁾		$	234,478			$	606,618			$	282,710		⁽¹⁾		$	440,368			$	-			$	1,564,174
Ending balance: individually evaluated for impairment		$	719			$	2,782			$	364				$	3			$	-			$	3,868
Ending balance: collectively evaluated for impairment		$	233,759			$	603,836			$	282,346				$	440,365			$	-			$	1,560,306

As of and for the six months ended June 30, 2022
		Commercial &				Commercial								Residential
(dollars in thousands)		industrial				real estate				Consumer				real estate				Unallocated				Total
Allowance for Loan Losses:
Beginning balance		$	2,204			$	7,422			$	2,404			$	3,508			$	86			$	15,624
Charge-offs			(31	)			(1	)			(136	)			-				-				(168	)
Recoveries			4				28				50				2				-				84
Provision			568				(486	)			452				527				(11	)			1,050
Ending balance		$	2,745			$	6,963			$	2,770			$	4,037			$	75			$	16,590

As of and for the three months ended June 30, 2022
		Commercial &				Commercial								Residential
(dollars in thousands)		industrial				real estate				Consumer				real estate				Unallocated				Total
Allowance for Loan Losses:
Beginning balance		$	2,780			$	6,822			$	2,547			$	3,851			$	81			$	16,081
Charge-offs			(31	)			-				(42	)			-				-				(73	)
Recoveries			2				19				36				-				-				57
Provision			(6	)			122				229				186				(6	)			525
Ending balance		$	2,745			$	6,963			$	2,770			$	4,037			$	75			$	16,590

Schedule of Credit Loss on Unfunded Commitments [Table Text Block]

(dollars in thousands)		For the Six Months Ended June 30, 2023				For the Six Months Ended June 30, 2022
Beginning balance		$	49			$	63
Impact of adopting ASC 326			1,060				-
Provision (credit) for loan losses			175				(18	)
Ending balance		$	1,284			$	45

Sales-Type and Direct Financing Leases, Payment to be Received, Maturity [Table Text Block]

(dollars in thousands)		Amount

2023		$	6,253
2024			12,652
2025			11,351
2026			3,657
2027			485
2028 and thereafter			51
Total future minimum lease payments receivable			34,449
Less: Unearned income			(1,885	)
Undiscounted cash flows to be received		$	32,564