Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Allowance for Credit Losses

Schedule of summary loan portfolio

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

	March 31,		December 31,
	2024		2023
Commercial real estate loans:
Construction	$	20,438	$	20,208
Non-residential		329,241		324,493
Multi-family		87,881		83,376
Residential real estate loans		78,846		77,259
Commercial and industrial loans(1)		91,291		88,927
Consumer loans:
Indirect automobile		367,011		394,245
Home equity		11,494		11,990
Other consumer		7,641		8,095
Total gross loans		993,843		1,008,593
Dealer reserves		7,476		8,382
Allowance for credit losses		(7,973)		(8,124)
Total net loans	$	993,346	$	1,008,851

⁽¹⁾ Includes $226 and $272 in U.S. Small Business Administration (“SBA”), paycheck protection program (“PPP”) loans at March 31, 2024 and December 31, 2023, respectively.

Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans

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

	March 31, 2024
							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	$	20,438	$	—	$	—	$	—	$	20,438	$	—
Non-residential		324,593		2,035		—		2,613		329,241		2,613
Multifamily		87,881		—		—		—		87,881		—
Residential real estate		76,577		1,039		1,154		76		78,846		1,143
Commercial and industrial		90,658		318		128		187		91,291		187
Consumer:
Indirect automobile		356,740		8,265		1,570		436		367,011		476
Home equity		11,295		14		46		139		11,494		139
Other consumer		7,366		233		40		2		7,641		2
Total	$	975,548	$	11,904	$	2,938	$	3,453	$	993,843	$	4,560

	December 31, 2023
							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	$	20,208	$	—	$	—	$	—	$	20,208	$	—
Non-residential		319,467		1,276		2,129		1,621		324,493		1,621
Multifamily		83,376		—		—		—		83,376		—
Residential real estate		75,998		888		37		336		77,259		1,624
Commercial and industrial		88,646		17		83		181		88,927		181
Consumer:
Indirect automobile		382,042		10,155		1,478		570		394,245		631
Home equity		11,843		—		48		99		11,990		99
Other consumer		7,844		202		24		25		8,095		25
Total	$	989,424	$	12,538	$	3,799	$	2,832	$	1,008,593	$	4,181

Schedule of amortized cost basis of nonaccrual loans

The following table presents the Company’s amortized cost basis of non-accrual loans for which there is no  related ACL:

	March 31, 2024		December 31, 2023
Commercial real estate:
Non-residential	$	1,375	$	1,152
Residential real estate		1,143		1,624
Commercial and industrial		172		150
Consumer:
Indirect automobile		150		160
Home equity		139		99
Other consumer		2		25
Total	$	2,981	$	3,210

The following table presents the Company’s amortized cost basis of only those non-accrual loans with a related ACL:

	March 31, 2024				December 31, 2023
	Non-accrual loans		Related ACL		Non-accrual loans		Related ACL
Commercial real estate:
Non-residential	$	1,238	$	290	$	469	$	16
Commercial and industrial		15		1		31		32
Consumer:
Indirect automobile		326		99		471		167
Total	$	1,579	$	390	$	971	$	215

Schedule of loan balances by segment

Activity in the Company’s ACL for loans for the three months ended March 31, 2024 is summarized in the table below.

	Commercial		Residential		Commercial
	Real Estate		Real Estate		and Industrial		Indirect		Consumer		Totals
	Three months ended March 31, 2024
Allowance for credit losses:
Beginning balance	$	2,716	$	346	$	606	$	4,348	$	108	$	8,124
Provision for (reversal of) credit losses		323		9		(7)		(238)		12		99
Loans charged-off		—		—		(34)		(895)		(32)		(961)
Recoveries		—		—		1		699		11		711
Ending balance	$	3,039	$	355	$	566	$	3,914	$	99	$	7,973
Ending balance:
Loans individually analyzed	$	291	$	—	$	—	$	99	$	—	$	390
Loans collectively analyzed	$	2,748	$	355	$	566	$	3,815	$	99	$	7,583
Loan receivables:
Ending balance	$	437,560	$	78,846	$	91,291	$	367,011	$	19,135	$	993,843
Ending balance:
Loans individually analyzed	$	2,613	$	1,143	$	187	$	476	$	239	$	4,658
Loans collectively analyzed	$	434,947	$	77,703	$	91,104	$	366,535	$	18,896	$	989,185

Activity in the Company’s allowance for credit losses for the three months ended March 31, 2023 and December 31, 2023 is summarized in the tables below. The adoption of ASC 326 row presents adjustments recorded on January 1, 2023 through retained earnings.

	Commercial		Residential		Commercial
	Real Estate		Real Estate		and Industrial			Indirect	Consumer		Totals
	Three months ended March 31, 2023
Allowance for credit losses:
Beginning balance	$	3,031	$	103	$	881	$	3,868	$	60	$	7,943
Adoption of ASC 326		(860)		54		(383)		1,710		59		580
Provision for credit losses		170		13		703		104		4		994
Loans charged-off		—		—		—		(989)		(22)		(1,011)
Recoveries		—		—		—		585		12		597
Ending balance	$	2,341	$	170	$	1,201	$	5,278	$	113	$	9,103

Schedule of unfunded commitments

Activity in the Company’s ACL for unfunded commitments for the three months ended March 31, 2024 is summarized in the tables below. The adoption of ASC 326 row presents adjustments recorded on January 1, 2023 through retained earnings.

	Commercial				Commercial
	Real Estate		Residential		and Industrial		Indirect		Consumer		Totals
	Three months ended March 31, 2024
Allowance for credit losses:
Beginning balance	$	172	$	—	$	72	$	—	$	13	$	257
Reversal of credit losses		(14)		—		(1)		—		(1)		(16)
Ending balance	$	158	$	—	$	71	$	—	$	12	$	241

	Commercial				Commercial
	Real Estate		Residential		and Industrial		Indirect		Consumer		Totals
	Three months ended March 31, 2023
Allowance for credit losses:
Beginning balance	$	—	$	—	$	—	$	—	$	—	$	—
Adoption of ASC 326		149		—		65		—		7		221
Provision for credit losses		19		—		1		—		—		20
Ending balance	$	158	$	—	$	71	$	—	$	12	$	241

Summary of provision for credit losses

The following table summarizes the provision for credit losses for the three months ended March 31, 2024 and 2023:

	Three months ended March 31,
	2024		2023
Provision for credit losses - loans	$	99	$	994
(Reversal of) provision for credit losses - unfunded commitments		(16)		20
Provision for credit losses	$	83	$	1,014

Schedule of loans by risk rating and portfolio segment

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process) based on rating category, as well as gross write-offs for the three months ended March 31, 2024, and by fiscal year of origination as of March 31, 2024.

													Revolving
	Loans by Origination Year												Loans
	2024		2023		2022		2021		2020		Prior		Amortized Cost		Total
Commercial construction
Watch		641		15,399		4,398		-		-		-		-		20,438
Total commercial construction		641		15,399		4,398		-		-		-		-		20,438
Commercial non-residential
Pass	$	2,021	$	34,387	$	52,760	$	26,360	$	16,493	$	87,069	$	-	$	219,090
Watch		2,776		16,542		16,259		7,470		11,645		37,747		-		92,439
Special mention		-		-		-		896		360		6,084		-		7,340
Substandard		-		-		2,895		1,386		460		5,631		-		10,372
Total commercial non-residential		4,797		50,929		71,914		36,112		28,958		136,531		-		329,241
Multifamily
Pass	$	-	$	804	$	18,681	$	30,175	$	2,084	$	5,832	$	-	$	57,576
Watch		-		1,000		6,732		11,895		-		10,331		-		29,958
Substandard		-		-		-		-		-		347				347
Total multifamily		-		1,804		25,413		42,070		2,084		16,510		-		87,881
Residential
Performing	$	3,034	$	28,170	$	25,068	$	2,122	$	2,708	$	16,601	$	-	$	77,703
Non-performing		-		-		-		-		-		1,143		-		1,143
Total residential		3,034		28,170		25,068		2,122		2,708		17,744		-		78,846
Commercial and industrial
Pass	$	2,382	$	12,044	$	25,244	$	10,193	$	1,241	$	1,940	$	10,446	$	63,490
Watch		676		2,005		3,129		296		470		1,591		16,483		24,650
Special mention		-		224		-		275		108		24		-		631
Substandard		-		-		-		-		-		869		1,651		2,520
Total commercial and industrial		3,058		14,273		28,373		10,764		1,819		4,424		28,580		91,291
Current-period gross write-offs		-		-		-		-		-		32		2		34
Indirect automobile
Performing	$	15,025	$	93,746	$	145,617	$	64,530	$	28,830	$	18,787	$	-	$	366,535
Non-performing		-		50		161		182		53		30		-		476
Total indirect automobile		15,025		93,796		145,778		64,712		28,883		18,817		-		367,011
Current-period gross write-offs		-		153		414		210		61		57		-		895
Home equity
Performing	$	-	$	-	$	-	$	-	$	-	$	4,155	$	7,200	$	11,355
Non-performing		-		-		-		-		-		99		40		139
Total home equity		-		-		-		-		-		4,254		7,240		11,494
Other consumer
Performing	$	694	$	2,507	$	3,057	$	729	$	308	$	116	$	228	$	7,639
Non-performing		-		-		-		2		-		-		-		2
Total other consumer		694		2,507		3,057		731		308		116		228		7,641
Current-period gross write-offs		-		4		-		3		24		-		1		32
Total Loans
Pass/performing	$	23,156	$	171,658	$	270,427	$	134,109	$	51,664	$	134,500	$	17,874	$	803,388
Watch		4,093		34,946		30,518		19,661		12,115		49,669		16,483		167,485
Special mention		0		224		0		1,171		468		6,108		-		7,971
Substandard		-		-		2,895		1,386		460		6,500		1,651		12,892
Non-performing		-		50		161		184		53		1,272		40		1,760
Total Loans	$	27,249	$	206,878	$	304,001	$	156,511	$	64,760	$	198,396	$	36,048	$	993,843
Total Current-period gross write-offs	$	0	$	157	$	414	$	213	$	85	$	89	$	3	$	961

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process) based on rating category, as well as gross write-offs for the year ended December 31, 2023, and by fiscal year of origination as of December 31, 2023.

													Revolving
	Loans by Origination Year												Loans
	2023		2022		2021		2020		2019		Prior		Amortized Cost		Total
Commercial construction
Pass	$	-	$	8,227	$	-	$	-	$	-	$	-	$	-	$	8,227
Watch		9,328		2,653		-		-		-		-		-		11,981
Total commercial construction		9,328		10,880		-		-		-		-		-		20,208
Commercial non-residential
Pass	$	34,508	$	43,534	$	26,600	$	16,673	$	39,943	$	44,412	$	-	$	205,670
Watch		16,575		19,235		14,854		12,747		7,573		38,004		-		108,988
Special mention		-		-		-		-		5,884		963		-		6,847
Substandard		-		-		-		-		465		2,523		-		2,988
Total commercial non-residential		51,083		62,769		41,454		29,420		53,865		85,902		-		324,493
Multifamily
Pass	$	807	$	18,765	$	30,374	$	2,100	$	1,540	$	4,348	$	-	$	57,934
Watch		1,000		6,754		6,925		-		1,265		9,498		-		25,442
Total multifamily		1,807		25,519		37,299		2,100		2,805		13,846		-		83,376
Residential
Performing	$	28,670	$	25,260	$	2,150	$	2,732	$	2,626	$	14,197	$	-	$	75,635
Non-performing		-		257		-		-		-		1,367		-		1,624
Total residential		28,670		25,517		2,150		2,732		2,626		15,564		-		77,259
Current-period gross write-offs		-		-		-		-		-		-		-		-
Commercial and industrial
Pass	$	12,637	$	26,070	$	10,804	$	1,474	$	962	$	1,254	$	11,662	$	64,863
Watch		2,082		3,227		321		620		482		1,603		14,204		22,539
Special mention		224		-		301		-		33		-		-		558
Substandard		-		-		-		-		83		841		43		967
Total commercial and industrial		14,943		29,297		11,426		2,094		1,560		3,698		25,909		88,927
Current-period gross write-offs		-		-		710		-		-		126		-		836
Indirect automobile
Performing	$	101,230	$	160,439	$	72,941	$	34,196	$	19,035	$	5,773	$	-	$	393,614
Non-performing		31		259		196		69		63		13		-		631
Total indirect automobile		101,261		160,698		73,137		34,265		19,098		5,786		-		394,245
Current-period gross write-offs		198		1,492		1,034		418		309		126		-		3,577
Home equity
Performing	$	-	$	-	$	-	$	-	$	34	$	4,064	$	7,793	$	11,891
Non-performing		-		-		-		-		-		99		-		99
Total home equity		-		-		-		-		34		4,163		7,793		11,990
Other consumer
Performing	$	2,928	$	3,477	$	856	$	411	$	138	$	22	$	238	$	8,070
Non-performing		-		-		-		24		-		-		1		25
Total other consumer		2,928		3,477		856		435		138		22		239		8,095
Current-period gross write-offs		8		30		10		11		-		3		-		62
Total Loans
Pass/performing	$	180,780	$	285,772	$	143,725	$	57,586	$	64,278	$	74,070	$	19,693	$	825,904
Watch		28,985		31,869		22,100		13,367		9,320		49,105		14,204		168,950
Special mention		224		-		301		0		5,917		963		-		7,405
Substandard		-		-		-		-		548		3,364		43		3,955
Non-performing		31		516		196		93		63		1,479		1		2,379
Total Loans	$	210,020	$	318,157	$	166,322	$	71,046	$	80,126	$	128,981	$	33,941	$	1,008,593
Total Current-period gross write-offs	$	206	$	1,522	$	1,754	$	429	$	309	$	255	$	-	$	4,475