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Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2024
Allowance For Loan Losses [Abstract]  
Allowance for Credit Losses

Note 7: Allowance for Credit Losses

 

Management extensively reviews recent trends in historical losses, qualitative factors, including concentrations of loans to related borrowers and concentrations of loans by collateral type, and specific reserve requirements on loans individually evaluated in its determination of the adequacy of the credit losses. The Company recorded $9.0 million in provision for credit losses ("PCL") for the three month period ended September 30, 2024, as compared to $833,000 for the three month period ended September 30, 2023. For the first nine months of 2024, we recorded $10.0 million in provision for credit losses compared to $2.7 million in the first nine months of the prior year.

 

The increase in provision for credit losses in in the three and nine months ended September 30, 2024, as compared to the same three and nine month periods in 2023, primarily resulted from a comprehensive loan portfolio review that the Bank elected to undertake as part of its commitment to continuously improve its credit risk management approach.

 

This comprehensive review included a detailed review of our originated loan portfolios as well as a reevaluation of certain purchased loan pools in light of observed changes in consumer loan repayment behavior, particularly for purchased consumer installment loan pools secured by liens on residential solar equipment installations (“Solar Loan Pools”), which are collateralized by security interests and validly executed liens on the installed equipment related to the loans. In general, these Solar Loan Pools are repaid through normal contractual amortization or voluntary prepayments, including discharges through full repayment when the related residential property is sold or refinanced. In reevaluating the current and expected performance of the four purchased Solar Loan Pools, management determined that these pools started to experience prepayment rates that are slower and have also exhibited higher charge-off rates than originally expected. As a result, management recorded an increase of approximately $4.6 million to the PCL for the three month period ended September 30, 2024 to properly record a current estimate of the lifetime losses related to the Solar Loan Pools.

Management's comprehensive review of the originated loan portfolio considered all aspects of reviewed credits, including collectability, specific reserves, and collateral. As a result, management recorded an increase of $3.8 million to the PCL for the three month period ended September 30, 2024, to properly reserve for these loans.

 

Following this comprehensive review, the Company recorded net charge offs of $8.7 million in the third quarter of 2024 and reduced nonperforming loans to $16.2 million at September 30, 2024. The allowance for credit losses on September 30, 2024 represented 1.87% and 106.8% of total and nonperforming loans, respectively.

 

In addition, during the third quarter of 2024, the Company recorded a PCL decrease of $31,000 for reserves related to securities classified as held-to-maturity and a $104,000 decrease to the PCL for unfunded commitments, respectively. The provision in the quarter ended September 30, 2024 was reflective of the qualitative factors used in determining the adequacy of the ACL and changes in the levels of delinquent and nonaccrual loans. The third quarter PCL reflects an addition to reserves considering asset quality metrics.

 

The following table summarizes all activity related to the ACL from December 31, 2023 to September 30, 2024 and to the recorded PCL for the three and nine months ended September 30, 2024 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves as of December 31, 2023

 

Q1 2024 Charge-Offs

 

Q1 2024 Recoveries

 

Q1 2024 PCL

 

Reserves as of March 31, 2024

 

Q2 2024 Charge-Offs

 

Q2 2024 Recoveries

 

Q2 2024 PCL

 

Reserves as of June 30, 2024

 

Q3 2024 Charge-Offs

 

Q3 2024 Recoveries

 

Q3 2024 PCL

 

Reserves as of Sept 30, 2024

 

ACL - Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Specifically identified

$

3,716

 

$

-

 

$

-

 

$

100

 

$

3,816

 

$

-

 

$

-

 

$

665

 

$

4,481

 

$

(6,153

)

$

5

 

$

4,110

 

$

2,443

 

     Overdraft

 

364

 

 

(5

)

 

4

 

 

-

 

 

363

 

 

(29

)

 

8

 

 

-

 

 

342

 

 

(121

)

 

47

 

 

(268

)

 

-

 

     Pooled - quantitative

 

6,203

 

 

(63

)

 

34

 

 

101

 

 

6,275

 

 

(83

)

 

38

 

 

80

 

 

6,309

 

 

(29

)

 

38

 

 

556

 

 

6,874

 

     Pooled - qualitative

 

3,566

 

 

-

 

 

-

 

 

509

 

 

4,075

 

 

 

 

 

 

(441

)

 

3,634

 

 

-

 

 

-

 

 

89

 

 

3,723

 

     Purchased

 

2,126

 

 

-

 

 

-

 

 

-

 

 

2,126

 

 

-

 

 

-

 

 

-

 

 

2,126

 

 

(2,509

)

 

-

 

 

4,617

 

 

4,234

 

Total ACL - Loans

$

15,975

 

$

(68

)

$

38

 

$

710

 

$

16,655

 

$

(112

)

$

46

 

$

304

 

$

16,892

 

$

(8,812

)

$

90

 

$

9,104

 

$

17,274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL - Held-To-Maturity

 

352

 

 

-

 

 

-

 

 

15

 

 

367

 

 

-

 

 

-

 

 

(74

)

 

293

 

 

-

 

 

-

 

 

(31

)

 

262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities - Unfunded Commitments

 

589

 

 

-

 

 

-

 

 

1

 

 

590

 

 

-

 

 

-

 

 

60

 

 

650

 

 

-

 

 

-

 

 

(104

)

 

546

 

 

$

16,916

 

$

(68

)

$

38

 

$

726

 

$

17,612

 

$

(112

)

$

46

 

$

290

 

$

17,835

 

$

(8,812

)

$

90

 

$

8,969

 

$

18,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summarized in the tables below are changes in the allowance for credit losses for loans for the indicated periods and information pertaining to the allocation of the balances of the credit losses, loans receivable based on individual, and collective evaluation by loan portfolio class. An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class.

 

 

 

As of and for the three months ended September 30, 2024

 

 

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

first-lien

 

 

Residential

 

 

 

 

 

 

 

 

Other

 

 

Paycheck

 

 

 

residential

 

 

construction

 

 

Commercial

 

 

Commercial

 

 

commercial

 

 

Protection

 

(In thousands)

 

mortgage

 

 

mortgage

 

 

real estate

 

 

lines of credit

 

 

and industrial

 

 

Program

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

1,536

 

 

$

815

 

 

$

6,663

 

 

$

1,221

 

 

$

3,821

 

 

$

-

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

(1,204

)

 

 

(1,918

)

 

 

(2,936

)

 

 

-

 

Recoveries

 

 

23

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

Provisions (credits)

 

 

(62

)

 

 

(5

)

 

 

1,122

 

 

 

1,220

 

 

 

1,845

 

 

 

-

 

Ending balance

 

$

1,497

 

 

$

810

 

 

$

6,581

 

 

$

523

 

 

$

2,735

 

 

$

-

 

Ending balance: related to loans
   individually evaluated

 

$

42

 

 

$

-

 

 

$

862

 

 

$

100

 

 

$

1,192

 

 

$

-

 

Ending balance: related to loans
   collectively evaluated

 

$

1,455

 

 

$

810

 

 

$

5,719

 

 

$

423

 

 

$

1,543

 

 

$

-

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

255,235

 

 

$

4,077

 

 

$

378,805

 

 

$

64,672

 

 

$

88,247

 

 

$

125

 

Ending balance: individually
   evaluated

 

$

1,733

 

 

$

-

 

 

$

9,518

 

 

$

1,455

 

 

$

6,226

 

 

$

-

 

Ending balance: collectively
   evaluated

 

$

253,502

 

 

$

4,077

 

 

$

369,287

 

 

$

63,217

 

 

$

82,021

 

 

$

125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

Tax exempt

 

 

and junior liens

 

 

Consumer

 

 

Total

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

2

 

 

$

625

 

 

$

2,209

 

 

 

16,892

 

 

 

 

 

 

 

Charge-offs

 

 

-

 

 

 

(51

)

 

 

(2,703

)

 

 

(8,812

)

 

 

 

 

 

 

Recoveries

 

 

-

 

 

 

-

 

 

 

62

 

 

 

90

 

 

 

 

 

 

 

Provisions (credits)

 

 

(1

)

 

 

172

 

 

 

4,813

 

 

 

9,104

 

 

 

 

 

 

 

Ending balance

 

$

1

 

 

$

746

 

 

$

4,381

 

 

$

17,274

 

 

 

 

 

 

 

Ending balance: related to loans
   individually evaluated

 

$

-

 

 

$

180

 

 

$

67

 

 

$

2,443

 

 

 

 

 

 

 

Ending balance: related to loans
   collectively evaluated

 

$

1

 

 

$

566

 

 

$

4,314

 

 

$

14,831

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

2,658

 

 

$

52,709

 

 

$

76,703

 

 

$

923,231

 

 

 

 

 

 

 

Ending balance: individually
   evaluated

 

$

-

 

 

$

591

 

 

$

67

 

 

$

19,590

 

 

 

 

 

 

 

Ending balance: collectively
   evaluated

 

$

2,658

 

 

$

52,118

 

 

$

76,636

 

 

$

903,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the nine months ended September 30, 2024

 

 

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

first-lien

 

 

Residential

 

 

 

 

 

 

 

 

Other

 

 

 

residential

 

 

construction

 

 

Commercial

 

 

Commercial

 

 

commercial

 

(In thousands)

 

mortgage

 

 

mortgage

 

 

real estate

 

 

lines of credit

 

 

and industrial

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

1,608

 

 

$

858

 

 

$

5,751

 

 

$

1,674

 

 

$

3,281

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

(1,205

)

 

 

(1,918

)

 

 

(2,936

)

Recoveries

 

 

31

 

 

 

-

 

 

 

19

 

 

 

-

 

 

 

12

 

Provisions (credits)

 

 

(142

)

 

 

(48

)

 

 

2,016

 

 

 

767

 

 

 

2,378

 

Ending balance

 

$

1,497

 

 

$

810

 

 

$

6,581

 

 

$

523

 

 

$

2,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax exempt

 

 

Home equity and junior liens

 

 

Other consumer

 

 

Total

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

1

 

 

$

657

 

 

$

2,145

 

 

 

15,975

 

 

 

 

Charge-offs

 

 

-

 

 

 

(51

)

 

 

(2,883

)

 

 

(8,993

)

 

 

 

Recoveries

 

 

-

 

 

 

1

 

 

 

111

 

 

 

174

 

 

 

 

Provisions (credits)

 

 

-

 

 

 

139

 

 

 

5,008

 

 

 

10,118

 

 

 

 

Ending balance

 

$

1

 

 

$

746

 

 

$

4,381

 

 

$

17,274

 

 

 

 

 

 

 

 

As of and for the three months ended September 30, 2023

 

 

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

first-lien

 

 

Residential

 

 

 

 

 

 

 

 

 

Other

 

 

Paycheck

 

 

 

residential

 

 

construction

 

 

Commercial

 

 

 

Commercial

 

 

commercial

 

 

Protection

 

(In thousands)

 

mortgage

 

 

mortgage

 

 

real estate

 

 

 

lines of credit

 

 

and industrial

 

 

Program

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

2,036

 

 

$

634

 

 

$

5,431

 

 

 

$

2,620

 

 

$

5,192

 

 

$

-

 

Charge-offs

 

 

(60

)

 

 

-

 

 

 

-

 

 

 

 

(1,230

)

 

 

(2,499

)

 

 

-

 

Recoveries

 

 

-

 

 

 

-

 

 

 

24

 

 

 

 

-

 

 

 

5

 

 

 

-

 

Provisions (credits)

 

 

31

 

 

 

238

 

 

 

(401

)

 

 

 

483

 

 

 

343

 

 

 

-

 

Ending balance

 

$

2,007

 

 

$

872

 

 

$

5,054

 

 

 

$

1,873

 

 

$

3,041

 

 

$

-

 

Ending balance: related to loans
   individually evaluated for impairment

 

$

126

 

 

$

-

 

 

$

598

 

 

 

$

1,093

 

 

$

1,564

 

 

$

-

 

Ending balance: related to loans
   collectively evaluated for impairment

 

$

1,881

 

 

$

872

 

 

$

4,456

 

 

 

$

780

 

 

$

1,477

 

 

$

-

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

252,956

 

 

$

2,090

 

 

$

362,822

 

 

 

$

73,497

 

 

$

85,506

 

 

$

169

 

Ending balance: individually
   evaluated for impairment

 

$

1,681

 

 

$

-

 

 

$

11,525

 

 

 

$

2,052

 

 

$

6,759

 

 

$

-

 

Ending balance: collectively
   evaluated for impairment

 

$

251,275

 

 

$

2,090

 

 

$

351,297

 

 

 

$

71,445

 

 

$

78,747

 

 

$

169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax exempt

 

 

and junior liens

 

 

Consumer

 

 

 

Total

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

15

 

 

$

682

 

 

$

2,186

 

 

 

$

18,796

 

 

 

 

 

 

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

(84

)

 

 

 

(3,873

)

 

 

 

 

 

 

Recoveries

 

 

-

 

 

 

-

 

 

 

17

 

 

 

 

46

 

 

 

 

 

 

 

Provisions (credits)

 

 

(2

)

 

 

40

 

 

 

66

 

 

-

 

 

798

 

 

 

 

 

 

 

Ending balance

 

$

13

 

 

$

722

 

 

$

2,185

 

 

 

$

15,767

 

 

 

 

 

 

 

Ending balance: related to loans
   individually evaluated for impairment

 

$

-

 

 

$

147

 

 

$

-

 

 

 

$

3,528

 

 

 

 

 

 

 

Ending balance: related to loans
   collectively evaluated for impairment

 

$

13

 

 

$

575

 

 

$

2,185

 

 

 

$

12,239

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

3,451

 

 

$

34,666

 

 

$

81,319

 

 

 

$

896,476

 

 

 

 

 

 

 

Ending balance: individually
   evaluated for impairment

 

$

-

 

 

$

712

 

 

$

-

 

 

 

$

22,729

 

 

 

 

 

 

 

Ending balance: collectively
   evaluated for impairment

 

$

3,451

 

 

$

33,954

 

 

$

81,319

 

 

 

$

873,747

 

 

 

 

 

 

 

 

 

 

 

As of and for the nine months ended September 30, 2023

 

 

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

first-lien

 

 

Residential

 

 

 

 

 

 

 

 

Other

 

 

 

residential

 

 

construction

 

 

Commercial

 

 

Commercial

 

 

commercial

 

(In thousands)

 

mortgage

 

 

mortgage

 

 

real estate

 

 

lines of credit

 

 

and industrial

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

714

 

 

$

-

 

 

$

5,881

 

 

$

3,990

 

 

$

2,944

 

Adoption of new accounting standard

 

 

1,396

 

 

 

969

 

 

 

(1,744

)

 

 

95

 

 

 

10

 

Charge-offs

 

 

(60

)

 

 

-

 

 

 

-

 

 

 

(1,230

)

 

 

(2,798

)

Recoveries

 

 

-

 

 

 

-

 

 

 

24

 

 

 

1

 

 

 

132

 

Provisions (credits)

 

 

(43

)

 

 

(97

)

 

 

893

 

 

 

(983

)

 

 

2,753

 

Ending balance

 

$

2,007

 

 

$

872

 

 

$

5,054

 

 

$

1,873

 

 

$

3,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax exempt

 

 

Home equity and junior liens

 

 

Other consumer

 

 

Total

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

3

 

 

$

741

 

 

$

1,046

 

 

$

15,319

 

 

 

 

Adoption of new accounting standard

 

 

14

 

 

 

(97

)

 

 

1,243

 

 

$

1,886

 

 

 

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

(277

)

 

 

(4,365

)

 

 

 

Recoveries

 

 

-

 

 

 

-

 

 

 

95

 

 

 

252

 

 

 

 

Provisions (credits)

 

 

(4

)

 

 

78

 

 

 

78

 

 

 

2,675

 

 

 

 

Ending balance

 

$

13

 

 

$

722

 

 

$

2,185

 

 

$

15,767

 

 

 

 

 

The Company’s methodology for determining its allowance for credit losses includes an analysis of qualitative factors that are added to the historical loss rates in arriving at the total allowance for credit losses needed for this general pool of loans. The qualitative factors include, but are not limited to, the following:

•
Changes in national and local economic trends;
•
The rate of growth in the portfolio;
•
Trends of delinquencies and nonaccrual balances;
•
Changes in loan policy; and
•
Changes in lending management experience and related staffing.

Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. These qualitative factors, applied to each product class, make the evaluation inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for credit losses analysis and calculation.

The allocation of the allowance for credit losses summarized on the basis of the Company’s calculation methodology was as follows:

 

 

 

As of September 30, 2024

 

 

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

first-lien

 

 

Residential

 

 

 

 

 

 

 

 

Other

 

 

 

residential

 

 

construction

 

 

Commercial

 

 

Commercial

 

 

commercial

 

(In thousands)

 

mortgage

 

 

mortgage

 

 

real estate

 

 

lines of credit

 

 

and industrial

 

Specifically reserved

 

$

42

 

 

$

-

 

 

$

862

 

 

$

100

 

 

$

1,192

 

Historical loss rate

 

 

1,523

 

 

 

810

 

 

 

2,829

 

 

 

110

 

 

 

1,008

 

Qualitative factors

 

 

(68

)

 

 

-

 

 

 

2,890

 

 

 

313

 

 

 

535

 

Total

 

$

1,497

 

 

$

810

 

 

$

6,581

 

 

$

523

 

 

$

2,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

Other

 

 

 

 

 

 

 

 

 

Tax exempt

 

 

and junior liens

 

 

consumer

 

 

Total

 

 

 

 

Specifically reserved

 

$

-

 

 

$

437

 

 

$

4,044

 

 

$

6,677

 

 

 

 

Historical loss rate

 

 

1

 

 

 

288

 

 

 

303

 

 

 

6,872

 

 

 

 

Qualitative factors

 

 

-

 

 

 

21

 

 

 

34

 

 

 

3,725

 

 

 

 

Total

 

$

1

 

 

$

746

 

 

$

4,381

 

 

$

17,274

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

1-4 family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

first-lien

 

 

Residential

 

 

 

 

 

 

 

 

Other

 

 

 

residential

 

 

construction

 

 

Commercial

 

 

Commercial

 

 

commercial

 

(In thousands)

 

mortgage

 

 

mortgage

 

 

real estate

 

 

lines of credit

 

 

and industrial

 

Specifically reserved

 

$

137

 

 

$

-

 

 

$

969

 

 

$

844

 

 

$

1,617

 

Historical loss rate

 

 

1,537

 

 

 

674

 

 

 

2,645

 

 

 

209

 

 

 

1,026

 

Qualitative factors

 

 

(66

)

 

 

184

 

 

 

2,137

 

 

 

621

 

 

 

638

 

Total

 

$

1,608

 

 

$

858

 

 

$

5,751

 

 

$

1,674

 

 

$

3,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

Other

 

 

 

 

 

 

 

 

 

Tax exempt

 

 

and junior liens

 

 

consumer

 

 

Total

 

 

 

 

Specifically reserved

 

$

-

 

 

$

458

 

 

$

1,817

 

 

$

5,842

 

 

 

 

Historical loss rate

 

 

1

 

 

 

190

 

 

 

307

 

 

 

6,589

 

 

 

 

Qualitative factors

 

 

-

 

 

 

9

 

 

 

21

 

 

 

3,544

 

 

 

 

Total

 

$

1

 

 

$

657

 

 

$

2,145

 

 

$

15,975

 

 

 

 

 

Collateral Dependent Disclosures

The Company has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans:

•
Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by office buildings and complexes, retail facilities, multifamily complexes, land under development, industrial properties, as well as other commercial or industrial real estate.
•
Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage.
•
Home equity lines of credit are generally secured by second mortgages on residential real estate property.
•
Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral.

The following table details the amortized cost of collateral dependent loans at September 30, 2024 and December 31, 2023:

 

(In thousands)

September 30, 2024

 

December 31, 2023

 

Commercial and industrial

$

7,681

 

$

7,788

 

Commercial real estate

 

9,518

 

 

11,814

 

Residential (1-4 family) first mortgages

 

1,733

 

 

699

 

Home equity loans and lines of credit

 

591

 

 

599

 

Consumer loans

 

67

 

 

81

 

Total loans

$

19,590

 

$

20,981