Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2024

Loans and Allowance for Credit Losses

Schedule of summary loan portfolio

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

	September 30,		December 31,
	2024		2023
Commercial real estate loans:
Construction	$	28,902	$	20,208
Non-residential		334,795		324,493
Multi-family		91,378		83,376
Residential real estate loans		85,592		77,259
Commercial and industrial loans		88,406		88,927
Consumer loans:
Indirect automobile		318,919		394,245
Home equity		11,728		11,990
Other consumer		7,326		8,095
Total gross loans		967,046		1,008,593
Dealer reserves		5,982		8,382
Allowance for credit losses		(8,153)		(8,124)
Total net loans	$	964,875	$	1,008,851

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:

	September 30, 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	$	28,902	$	—	$	—	$	—	$	28,902	$	—
Non-residential		332,434		4		—		2,357		334,795		2,357
Multifamily		91,378		—		—		—		91,378		—
Residential real estate		84,235		1,105		34		218		85,592		1,227
Commercial and industrial		88,126		72		57		151		88,406		151
Consumer:
Indirect automobile		308,062		8,725		1,463		669		318,919		692
Home equity		11,180		269		38		241		11,728		241
Other consumer		7,060		222		20		24		7,326		24
Total	$	951,377	$	10,397	$	1,612	$	3,660	$	967,046	$	4,692

	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:

	September 30, 2024		December 31, 2023
Commercial real estate:
Non-residential	$	2,357	$	1,152
Residential real estate		1,227		1,624
Commercial and industrial		120		150
Consumer:
Indirect automobile		235		160
Home equity		241		99
Other consumer		12		25
Total	$	4,192	$	3,210

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

	September 30, 2024				December 31, 2023
	Non-accrual loans		Related ACL		Non-accrual loans		Related ACL
Commercial real estate:
Non-residential	$	—	$	—	$	469	$	16
Commercial and industrial		31		31		31		32
Consumer:
Indirect automobile		457		110		471		167
Other consumer		12		5		—		—
Total	$	500	$	146	$	971	$	215

Schedule of loan balances by segment

Activity in the Company’s ACL for loans for the three and nine months ended September 30, 2024 is summarized in the table below.

	Commercial				Commercial
	Real Estate		Residential		and Industrial		Indirect		Consumer		Totals
	Three months ended September 30, 2024
Allowance for credit losses:
Beginning balance	$	2,806	$	377	$	576	$	3,698	$	117	$	7,574
Provision for (reversal of) credit losses		80		11		(20)		784		68		923
Loans charged-off		—		—		(1)		(863)		(55)		(919)
Recoveries		—		—		1		568		6		575
Ending balance	$	2,886	$	388	$	556	$	4,187	$	136	$	8,153

	Commercial		Residential		Commercial
	Real Estate		Real Estate		and Industrial		Indirect		Consumer		Totals
	Nine months ended September 30, 2024
Allowance for credit losses:
Beginning balance	$	2,716	$	346	$	606	$	4,348	$	108	$	8,124
Provision for credit losses		461		42		31		795		127		1,456
Loans charged-off		(291)		—		(83)		(2,676)		(136)		(3,186)
Recoveries		—		—		2		1,720		37		1,759
Ending balance	$	2,886	$	388	$	556	$	4,187	$	136	$	8,153

Activity in the Company’s ACL for loans for the three and nine months ended September 30, 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 September 30, 2023
Allowance for credit losses:
Beginning balance	$	2,294	$	179	$	454	$	4,968	$	108	$	8,003
Provision for (reversal of) credit losses		517		13		13		341		(5)		879
Loans charged-off		—		—		—		(1,098)		—		(1,098)
Recoveries		—	$	49	$	69	$	588	$	7		713
Ending balance	$	2,811	$	241	$	536	$	4,799	$	110	$	8,497

	Commercial		Residential		Commercial
	Real Estate		Real Estate		and Industrial			Indirect	Consumer		Totals
	Nine months ended September 30, 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 (reversal of) credit losses		640		32		639		118		(35)		1,394
Loans charged-off		—		—		(710)		(2,584)		(25)		(3,319)
Recoveries		—		52		109		1,687		51		1,899
Ending balance	$	2,811	$	241	$	536	$	4,799	$	110	$	8,497

Schedule of unfunded commitments

Activity in the Company’s ACL for unfunded commitments for the three and nine months ended September 30, 2024 and 2023 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 September 30, 2024
Allowance for credit losses:
Beginning balance	$	160	$	3	$	80	$	—	$	11	$	254
(Reversal of) provision for credit losses		(42)		(2)		6		—		4		(34)
Ending balance	$	118	$	1	$	86	$	—	$	15	$	220

	Commercial				Commercial
	Real Estate		Residential		and Industrial		Indirect		Consumer		Totals
	Nine months ended September 30, 2024
Allowance for credit losses:
Beginning balance	$	172	$	—	$	72	$	—	$	13	$	257
(Reversal of) provision for credit losses		(54)		1		14		—		2		(37)
Ending balance	$	118	$	1	$	86	$	—	$	15	$	220

	Commercial				Commercial
	Real Estate		Residential		and Industrial		Indirect		Consumer		Totals
	Three months ended September 30, 2023
Allowance for credit losses:
Beginning balance	$	200	$	—	$	61	$	—	$	7	$	268
Provision for credit losses		26		—		4		—		1		31
Ending balance	$	226	$	—	$	65	$	—	$	8	$	299

	Commercial				Commercial
	Real Estate		Residential		and Industrial		Indirect		Consumer		Totals
	Nine months ended September 30, 2023
Allowance for credit losses:
Beginning balance	$	—	$	—	$	—	$	—	$	—	$	—
Adoption of CECL standard		149		—		65		—		7		221
Provision for credit losses		77		—		—		—		1		78
Ending balance	$	226	$	—	$	65	$	—	$	8	$	299

Summary of provision for credit losses

The following table summarizes the provision for credit losses for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Provision for credit losses - loans	$	923	$	879	$	1,456	$	1,394
(Reversal of) provision for credit losses - unfunded commitments		(34)		31		(37)		78
Provision for credit losses	$	889	$	910	$	1,419	$	1,472

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 nine months ended September 30, 2024, and by fiscal year of origination as of September 30, 2024.

													Revolving
	Loans by Origination Year												Loans
	2024		2023		2022		2021		2020		Prior		Amortized Cost		Total
Commercial construction
Watch		2,565		24,025		2,312		-		-		-		-		28,902
Total commercial construction		2,565		24,025		2,312		-		-		-		-		28,902
Commercial non-residential
Pass	$	14,438	$	37,069	$	50,198	$	27,236	$	16,294	$	80,420	$	-	$	225,655
Watch		8,529		14,347		15,307		7,386		11,409		36,715		-		93,693
Special mention		-		-		1,368		879		335		5,984		-		8,566
Substandard		-		-		2,855		-		-		4,026		-		6,881
Total commercial non-residential		22,967		51,416		69,728		35,501		28,038		127,145		-		334,795
Current-period gross write-offs		-		-		-		-		-		291		-		291
Multifamily
Pass	$	-	$	1,405	$	18,511	$	29,779	$	2,051	$	5,355	$	-	$	57,101
Watch		-		987		11,079		11,675		-		10,536		-		34,277
Total multifamily		-		2,392		29,590		41,454		2,051		15,891		-		91,378
Residential
Performing	$	12,137	$	27,948	$	24,128	$	2,062	$	2,663	$	15,427	$	-	$	84,365
Non-performing		-		-		-		-		-		1,227		-		1,227
Total residential		12,137		27,948		24,128		2,062		2,663		16,654		-		85,592
Commercial and industrial
Pass	$	7,383	$	9,945	$	23,300	$	8,496	$	846	$	1,133	$	13,676	$	64,779
Watch		3,179		1,134		2,359		219		403		1,218		11,707		20,219
Special mention		-		224		521		222		100		10		-		1,077
Substandard		-		-		-		-		-		795		1,536		2,331
Total commercial and industrial		10,562		11,303		26,180		8,937		1,349		3,156		26,919		88,406
Current-period gross write-offs		-		40		-		7		-		36				83
Indirect automobile
Performing	$	42,612	$	79,430	$	118,013	$	49,122	$	19,501	$	9,549	$	-	$	318,227
Non-performing		17		29		383		148		47		68		-		692
Total indirect automobile		42,629		79,459		118,396		49,270		19,548		9,617		-		318,919
Current-period gross write-offs		83		608		1,153		488		207		137		-		2,676
Home equity
Performing	$	-	$	-	$	-	$	-	$	-	$	3,796	$	7,691	$	11,487
Non-performing		-		-		-		-		-		226		15		241
Total home equity		-		-		-		-		-		4,022		7,706		11,728
Other consumer
Performing	$	2,261	$	1,877	$	2,263	$	500	$	142	$	35	$	224	$	7,302
Non-performing		-		23		1		-		-		-		-		24
Total other consumer		2,261		1,900		2,264		500		142		35		224		7,326
Current-period gross write-offs		8		58		35		6		24		5		-		136
Total Loans
Pass/performing	$	78,831	$	157,674	$	236,413	$	117,195	$	41,497	$	115,715	$	21,591	$	768,916
Watch		14,273		40,493		31,057		19,280		11,812		48,469		11,707		177,091
Special mention		0		224		1,889		1,101		435		5,994		-		9,643
Substandard		-		-		2,855		-		0		4,821		1,536		9,212
Non-performing		17		52		384		148		47		1,521		15		2,184
Total Loans	$	93,121	$	198,443	$	272,598	$	137,724	$	53,791	$	176,520	$	34,849	$	967,046
Total Current-period gross write-offs	$	91	$	706	$	1,188	$	501	$	231	$	469	$	-	$	3,186

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