XML 23 R11.htm IDEA: XBRL DOCUMENT v3.23.1
Loans and Allowance for Loan Losses
12 Months Ended
Dec. 31, 2022
Loans and Allowance for Loan Losses  
Loans and Allowance for Loan Losses

4.    Loans and Allowance for loan losses

A summary of the Company’s loan portfolio is as follows:

​

​

​

​

​

​

​

​

​

​

​

December 31, 

​

December 31, 

​

​

    

2022

    

2021

​

Commercial real estate loans:

 

​

 

  

​

Construction

​

$

20,329

​

$

10,095

​

Non-residential

​

 

282,422

​

 

245,568

​

Multi-family

​

 

67,777

​

 

55,926

​

Residential real estate loans

​

 

53,720

​

 

35,646

​

Commercial and industrial loans(1)

​

 

87,982

​

 

104,323

​

Consumer loans:

​

 

  

​

 

  

​

Indirect automobile

​

 

457,223

​

 

382,088

​

Home equity

​

 

11,507

​

 

11,857

​

Other consumer

​

 

9,479

​

 

7,955

​

Total gross loans

​

 

990,439

​

 

853,458

​

Net deferred loan costs

​

 

11,872

​

 

9,068

​

Allowance for loan losses

​

 

(7,943)

​

 

(7,559)

​

Total net loans

​

$

994,368

​

$

854,967

​

(1)

Includes $537 and $29,464 in SBA PPP loans at December 31, 2022 and 2021, respectively.

At December 31, 2022 and 2021, the unpaid principal balances of loans held for sale, included in the residential real estate category above, were $247 and $3,950, respectively.

The following tables present the classes of the loan portfolio summarized by the pass category and the criticized categories of special mention and substandard within the internal risk system:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2022

​

    

Pass

    

Special Mention

    

Substandard

    

Total

Commercial real estate:

​

​

  

​

​

  

​

​

  

​

​

  

Construction

​

$

20,329

​

$

—

​

$

—

​

$

20,329

Non-residential

​

​

271,491

​

​

7,904

​

​

3,027

​

​

282,422

Multifamily

 

​

67,777

 

​

—

 

​

—

 

​

67,777

Residential real estate

 

​

52,265

 

​

—

 

​

1,455

 

​

53,720

Commercial and industrial

 

​

83,680

 

​

3,825

 

​

477

 

​

87,982

Consumer:

 

​

​

 

​

  

 

​

  

 

​

  

Indirect automobile

 

​

456,112

 

​

—

 

​

1,111

 

​

457,223

Home equity

 

​

11,290

 

​

—

 

​

217

 

​

11,507

Other consumer

 

​

9,428

 

​

—

 

​

51

 

​

9,479

Total

​

$

972,372

​

$

11,729

​

$

6,338

​

$

990,439

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

December 31, 2021

​

    

Pass

    

Special Mention

    

Substandard

    

Total

Commercial real estate:

​

​

  

​

​

  

​

​

  

​

​

  

Construction

​

$

10,095

​

$

—

​

$

—

​

$

10,095

Non-residential

​

​

232,253

​

​

10,341

​

​

2,974

​

​

245,568

Multifamily

 

​

55,926

 

​

—

 

​

—

 

​

55,926

Residential real estate

 

​

33,416

 

​

—

 

​

2,230

 

​

35,646

Commercial and industrial

 

​

98,171

 

​

5,377

 

​

775

 

​

104,323

Consumer:

 

​

​

 

​

  

 

​

  

 

​

  

Indirect automobile

 

​

381,354

 

​

—

 

​

734

 

​

382,088

Home equity

 

​

11,587

 

​

—

 

​

270

 

​

11,857

Other consumer

 

​

7,908

 

​

—

 

​

47

 

​

7,955

Total

​

$

830,710

​

$

15,718

​

$

7,030

​

$

853,458

​

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The past due status of all classes of loans is determined based on contractual due dates for loan payments.

The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying statements of financial condition. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At December 31, 2022 and 2021, the Company was servicing loans for participants aggregating $7,516 and $3,962, respectively.

The Company services certain loans that it has sold without recourse to third parties. The aggregate balances of loans serviced for others were $301,235 and $314,953 as of December 31, 2022 and 2021, respectively.

The balance of capitalized servicing rights, included in other assets at December 31, 2022 and 2021, were $2,409 and $2,633, respectively. Fair value exceeds carrying value. No impairment charges related to servicing rights were recognized during the years ended December 31, 2022 or 2021.

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2022

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

30-59 Days

​

60-89 Days

​

90 Days Past

​

Total Loans

​

​

​

    

Current

    

Past Due

    

Past Due

    

Due

    

Receivable

    

Non-accrual

Commercial real estate:

​

​

  

​

​

  

​

​

  

​

​

  

​

​

  

​

​

  

Construction

​

$

20,329

​

$

—

​

$

—

​

$

—

​

$

20,329

​

$

—

Non-residential

​

​

275,860

​

​

4,701

​

​

479

​

​

1,382

​

​

282,422

​

​

1,382

Multifamily

​

​

67,413

​

​

364

​

​

—

​

​

—

​

​

67,777

​

​

—

Residential real estate

 

​

51,476

 

​

1,417

 

​

246

 

​

581

 

​

53,720

 

​

1,794

Commercial and industrial

 

​

87,742

 

​

57

 

​

—

 

​

183

 

​

87,982

 

​

183

Consumer:

 

​

  

 

​

  

 

​

​

 

​

  

 

​

  

 

​

​

Indirect automobile

 

​

444,418

 

​

10,714

​

​

1,389

 

​

702

 

​

457,223

 

​

797

Home equity

 

​

11,279

 

​

51

​

​

58

 

​

119

 

​

11,507

 

​

217

Other consumer

 

​

9,208

 

​

149

 

​

71

 

​

51

 

​

9,479

 

​

51

Total

​

$

967,725

​

$

17,453

​

$

2,243

​

$

3,018

​

$

990,439

​

$

4,424

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

​

​

​

​

​

​

Greater Than

​

​

​

​

​

​

​

​

30-59 Days

​

60-89 Days

​

90 Days Past

​

Total Loans

​

​

​

    

Current

    

Past Due

    

Past Due

    

Due

    

Receivable

    

Non-accrual

Commercial real estate:

​

​

  

​

​

  

​

​

  

​

​

  

​

​

  

​

​

  

Construction

​

$

10,095

​

$

—

​

$

—

​

$

—

​

$

10,095

​

$

—

Non-residential

​

​

242,205

​

​

115

​

​

527

​

​

2,721

​

​

245,568

​

​

2,721

Multifamily

​

​

55,926

​

​

—

​

​

—

​

​

—

​

​

55,926

​

​

—

Residential real estate

 

​

34,363

 

​

57

 

​

242

 

​

984

 

​

35,646

 

​

2,230

Commercial and industrial

 

​

103,517

 

​

246

 

​

—

 

​

560

 

​

104,323

 

​

687

Consumer:

 

​

  

 

​

  

 

​

​

 

​

  

 

​

  

 

​

​

Indirect automobile

 

​

374,729

 

​

5,977

​

​

715

 

​

667

 

​

382,088

 

​

734

Home equity

 

​

11,429

 

​

149

 

​

106

 

​

173

 

​

11,857

 

​

270

Other consumer

 

​

7,702

 

​

153

 

​

53

 

​

47

 

​

7,955

 

​

47

Total

​

$

839,966

​

$

6,697

​

$

1,643

​

$

5,152

​

$

853,458

​

$

6,689

​

There were no loans greater than 90 days past due and still accruing as of December 31, 2022 or 2021.

The following tables summarize information in regard to impaired loans by loan portfolio class:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2022

​

​

Recorded

​

Unpaid Principal

​

Related

​

Average Recorded

​

    

Investment

    

Balance

    

Allowance

    

Investment

With no related allowance recorded:

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate:

​

​

​

​

​

​

​

​

​

​

​

​

Non-residential

​

$

1,382

​

$

2,472

​

$

—

​

$

1,967

Residential real estate

​

 

1,794

​

 

2,445

​

 

—

​

 

1,890

Commercial and industrial

​

 

183

​

 

242

​

 

—

​

 

309

Consumer:

​

 

​

​

 

  

​

 

  

​

 

​

Indirect automobile

​

 

371

​

 

439

​

 

—

​

 

336

Home equity

​

 

217

​

 

219

​

 

—

​

 

146

Other consumer

​

 

49

​

 

53

​

 

—

​

 

38

Total

​

$

3,996

​

$

5,870

​

$

—

​

$

4,686

With an allowance recorded:

​

 

  

​

 

  

​

 

  

​

 

  

Commercial and industrial

​

$

—

​

$

—

​

$

—

​

$

114

Consumer:

​

 

  

​

 

  

​

 

​

​

 

​

Indirect automobile

​

​

426

​

​

435

​

​

107

​

​

293

Other consumer

​

 

2

​

 

2

​

 

2

​

 

11

Total

​

$

428

​

$

437

​

$

109

​

$

418

Total:

​

 

  

​

 

  

​

 

  

​

 

  

Commercial real estate:

​

 

  

​

 

  

​

 

  

​

 

  

Non-residential

​

$

1,382

​

$

2,472

​

$

—

​

$

1,967

Residential real estate

​

 

1,794

​

 

2,445

​

 

—

​

 

1,890

Commercial and industrial

​

 

183

​

 

242

​

 

—

​

 

423

Consumer:

​

 

  

​

 

  

​

 

  

​

 

  

Indirect automobile

​

 

797

​

 

874

​

 

107

​

 

629

Home equity

​

 

217

​

 

219

​

 

—

​

 

146

Other consumer

​

 

51

​

 

55

​

 

2

​

 

49

Total

​

$

4,424

​

$

6,307

​

$

109

​

$

5,104

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

Recorded 

​

Unpaid Principal 

​

Related 

​

Average Recorded 

​

    

Investment

    

Balance

    

Allowance

    

Investment

With no related allowance recorded:

​

  

​

​

  

​

​

  

​

​

  

​

Commercial real estate:

​

  

​

​

  

​

​

  

​

​

  

​

Non-residential

​

$

2,721

​

$

3,797

​

$

—

​

$

2,290

Residential real estate

​

 

2,230

​

 

2,786

​

 

—

​

 

2,459

Commercial and industrial

​

 

687

​

 

921

​

 

—

​

 

674

Consumer:

​

 

​

​

 

  

​

 

  

​

 

​

Indirect automobile

​

 

345

​

 

408

​

 

—

​

 

219

Home equity

​

 

270

​

 

276

​

 

—

​

 

338

Other consumer

​

 

47

​

 

48

​

 

—

​

 

50

Total

​

$

6,300

​

$

8,236

​

$

—

​

$

6,030

With an allowance recorded:

​

 

  

​

 

  

​

 

  

​

 

  

Commercial real estate:

​

 

  

​

 

  

​

 

  

​

 

  

Commercial and industrial

​

$

—

​

$

—

​

$

—

​

$

148

Consumer:

​

 

  

​

 

  

​

 

​

​

 

  

Indirect automobile

​

​

389

​

​

395

​

​

68

​

​

286

Total

​

$

389

​

$

395

​

$

68

​

$

434

Total:

​

 

  

​

 

  

​

 

  

​

 

  

Commercial real estate:

​

 

  

​

 

  

​

 

  

​

 

  

Non-residential

​

$

2,721

​

$

3,797

​

$

—

​

$

2,290

Residential real estate

​

 

2,230

​

 

2,786

​

 

—

​

 

2,459

Commercial and industrial

​

 

687

​

 

921

​

 

—

​

 

822

Consumer:

​

 

  

​

 

  

​

 

  

​

 

  

Indirect automobile

​

 

734

​

 

803

​

 

68

​

 

505

Home equity

​

 

270

​

 

276

​

 

—

​

 

338

Other consumer

​

 

47

​

 

48

​

 

—

​

 

50

Total

​

$

6,689

​

$

8,631

​

$

68

​

$

6,464

​

The Company does not generally recognize interest income on a loan in an impaired status. At December 31, 2022 and 2021, the same three loans totaling $1,339 and $1,440, respectively, which were included in impaired loans, were identified as TDRs. The initial modifications of these loans took place prior to 2021 and included two residential mortgages and one home equity loan that included both rate and term modifications. In 2022 and 2021, there were no new TDRs. Interest income on impaired loans was immaterial during each of the periods presented. At December 31, 2022 and 2021, all loans were performing in accordance with their restructured terms. At December 31, 2022 and 2021, the Company had no commitments to advance additional funds to borrowers under TDR loans.

Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $625 and $935 at December 31, 2022 and 2021, respectively.

The following tables summarize the segments of the loan portfolio and the allowance for loan losses, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment and the activity in the allowance for loan losses for the periods then ended:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

Residential

​

Commercial

​

​

​

​

​

​

​

    

Real Estate

    

Real Estate

    

and Industrial

    

Indirect

    

Consumer

    

Totals

​

​

Year ended December 31, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for loan losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning balance

​

$

3,317

​

$

54

​

$

725

​

$

3,416

​

$

47

​

$

7,559

(Credit to) provision for loan losses

​

​

(286)

​

​

(63)

​

​

493

​

​

1,205

​

​

65

​

​

1,414

Loans charged-off

​

​

—

​

​

(44)

​

​

(456)

​

​

(2,660)

​

​

(107)

​

​

(3,267)

Recoveries

 

​

—

 

​

156

 

​

119

 

​

1,907

 

​

55

 

​

2,237

Ending balance

​

$

3,031

​

$

103

​

$

881

​

$

3,868

​

$

60

​

$

7,943

Ending balance:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Loans deemed impaired

​

$

—

​

$

—

​

$

—

​

$

107

​

$

2

​

$

109

Loans not deemed impaired

​

$

3,031

​

$

103

​

$

881

​

$

3,761

​

$

58

​

$

7,834

Loan receivables:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Ending balance

​

$

370,528

​

$

53,720

​

$

87,982

​

$

457,223

​

$

20,986

​

$

990,439

Ending balance:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

​

 

  

Loans deemed impaired

​

$

1,382

​

$

1,794

​

$

183

​

$

797

​

$

268

​

$

4,424

Loans not deemed impaired

​

$

369,146

​

$

51,926

​

$

87,799

​

$

456,426

​

$

20,718

​

$

986,015

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial

​

Residential

​

Commercial

​

​

​

​

​

​

​

    

Real Estate

    

Real Estate

    

and Industrial

    

Indirect

    

Consumer

    

Totals

​

​

December 31, 2021

Allowance for loan losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning balance

​

$

5,354

​

$

117

​

$

1,050

​

$

4,974

​

$

138

​

$

11,633

(Credit to) provision for loan losses

​

​

(2,037)

​

​

(69)

​

​

(414)

​

​

(1,035)

​

​

(112)

​

​

(3,667)

Loans charged-off

​

​

—

​

​

—

​

​

(12)

​

​

(2,048)

​

​

(24)

​

​

(2,084)

Recoveries

 

​

—

 

​

6

 

​

101

 

​

1,525

 

​

45

 

​

1,677

Ending balance

​

$

3,317

​

$

54

​

$

725

​

$

3,416

​

$

47

​

$

7,559

Ending balance:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Loans deemed impaired

​

$

—

​

$

—

​

$

—

​

$

68

​

$

—

​

$

68

Loans not deemed impaired

​

$

3,317

​

$

54

​

$

725

​

$

3,348

​

$

47

​

$

7,491

Loan receivables:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Ending balance

​

$

311,589

​

$

35,646

​

$

104,323

​

$

382,088

​

$

19,812

​

$

853,458

Ending balance:

​

 

  

​

 

​

​

 

  

​

 

  

​

 

  

​

 

  

Loans deemed impaired

​

$

2,721

​

$

2,230

​

$

687

​

$

734

​

$

317

​

$

6,689

Loans not deemed impaired

​

$

308,868

​

$

33,416

​

$

103,636

​

$

381,354

​

$

19,495

​

$

846,769

​

In the normal course of business, the Company grants loans to officers, directors and other related parties. Balances and activity of such loans during the years presented were not material.