Loans and Related Allowance for Credit Losses

3 Months Ended

Mar. 31, 2024

Loans and Related Allowance for Credit Losses [Abstract]

Loans and Related Allowance for Credit Losses

Note 5 – Loans and Related Allowance for Credit Losses

The following table summarizes the primary segments of the loan portfolio at March 31, 2024 and December 31, 2023:

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
March 31, 2024
Individually evaluated for impairment	$	819	$	—	$	12,085	$	1,971	$	—	$	14,875
Collectively evaluated for impairment		492,000		83,424		262,637		500,019		59,372		1,397,452
Total loans	$	492,819	$	83,424	$	274,722	$	501,990	$	59,372	$	1,412,327
December 31, 2023
Individually evaluated for impairment	$	826	$	—	$	—	$	2,137	$	—	$	2,963
Collectively evaluated for impairment		492,877		77,060		274,604		497,734		61,429		1,403,704
Total loans	$	493,703	$	77,060	$	274,604	$	499,871	$	61,429	$	1,406,667

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at March 31, 2024 and December 31, 2023:

(in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days+ Past Due		Total Past Due and Accruing		Non- Accrual		Total Loans
March 31, 2024
Commercial real estate:
Non-owner-occupied	$	293,109	$	1,387	$	—	$	—	$	1,387	$	219	$	294,715
All other CRE		197,505		—		—		—		—		599		198,104
Acquisition and development:
1-4 family residential construction		18,781		—		—		—		—		—		18,781
All other A&D		64,538		—		—		—		—		105		64,643
Commercial and industrial		262,061		559		9		—		568		12,093		274,722
Residential mortgage:
Residential mortgage - term		436,673		1,845		—		61		1,906		2,528		441,107
Residential mortgage - home equity		60,013		310		210		15		535		335		60,883
Consumer		58,037		840		323		44		1,207		128		59,372
Total	$	1,390,717	$	4,941	$	542	$	120	$	5,603	$	16,007	$	1,412,327
December 31, 2023
Commercial real estate:
Non-owner-occupied	$	296,343	$	—	$	—	$	—	$	—	$	227	$	296,570
All other CRE		196,123		411		—		—		411		599		197,133
Acquisition and development:
1-4 family residential construction		18,224		—		—		—		—		—		18,224
All other A&D		58,723		—		—		—		—		113		58,836
Commercial and industrial		274,465		120		19		—		139		—		274,604
Residential mortgage:
Residential mortgage - term		433,878		130		717		384		1,231		2,720		437,829
Residential mortgage - home equity		61,021		520		158		75		753		268		62,042
Consumer		60,576		463		277		84		824		29		61,429
Total	$	1,399,353	$	1,644	$	1,171	$	543	$	3,358	$	3,956	$	1,406,667

Non-accrual loans that have been subject to partial charge-offs totaled $0.1 million at both March 31, 2024 and December 31, 2023.  Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $1.8 million at both March 31, 2024 and December 31, 2023.  As a percentage of the loan portfolio, accruing loans past due 30 days or more was 0.40% at March 31, 2024 compared to 0.24% at December 31, 2023 and 0.17% at March 31, 2023. 

The Corporation maintains an ACL at a level that management believes will be adequate to absorb expected credit losses associated with the Corporation’s financial instruments over the life of those instruments as of the balance sheet date.  The Corporation develops and documents a systematic ACL methodology based on the following portfolio segments: (i) commercial real estate, (ii) acquisition and development, (iii) commercial and industrial, (iv) residential mortgage, and (v) consumer.  The Corporation’s loan portfolio is segmented by homogeneous loan types that behave similarly to economic cycles.  The following is a discussion of the key risks by portfolio segment that management assesses in preparing the ACL.

Commercial Real Estate- loans are secured by commercial purpose real estate, including both owner occupied properties and properties obtained for investment purposes, such as hotels, strip malls and apartments.  Operations of the individual projects as well as global cash flows of the debtors are the primary source of repayment of these loans.  The condition of the local economy is an important indicator of risk, but there are more specific risks depending on the collateral type as well as the business.

Acquisition and Development- loans include both commercial and consumer.  Commercial loans are made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes.  While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal.  The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.  Consumer loans are made for the construction of residential homes for which a binding sales contract exists and generally are for a period of time sufficient to complete construction.  Residential construction loans to individuals generally provide for the payment of interest only during the construction phase.  Credit risk for residential real estate construction loans can arise from construction delays, cost overruns, failure of the contractor to complete the project to specifications and economic conditions that could impact demand for supply of the property being constructed.

Commercial and Industrial- loans are made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing.  Cash flow from the operations of the borrower is the primary source of repayment for these loans.  The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the borrower.  Collateral for these types of loans often do not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.  These loans are also made to local municipalities for various purposes including refinancing existing obligations, infrastructure up-fit and expansion, or to purchase new equipment.  The primary repayment source for local municipalities include the tax base of the municipality, specific revenue streams related to the infrastructure financed, and other business operations of the municipal authority.  The health and stability of state and local economies directly impacts each municipality’s tax basis and are important indicators of risk for this segment.  The ability of each municipality to increase taxes and fees to offset service requirements give this type of loan a very low risk profile in the continuum of the Corporation’s loan portfolio.

Residential mortgage- loans are secured by first and second liens such as home equity lines of credit and 1-4 family residential mortgages.  The primary source of repayment for these loans is the income of the borrower.  The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment.  The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy debt.

Consumer- loans are made to individuals and may be either secured by assets other than 1-4 family residences or unsecured.  This segment includes automobile loans and unsecured loans and lines of credit.  The primary source of repayment for these loans is the income and assets of the borrower.  The condition of the local economy, in particular the unemployment rate, is an important

indicator of risk for this segment.  The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

The following table summarizes the primary segments of the ACL at March 31, 2024 and December 31, 2023, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
March 31, 2024
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,962		1,014		4,002		7,017		987		17,982
Total ACL	$	4,962	$	1,014	$	4,002	$	7,017	$	987	$	17,982
December 31, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		5,120		940		3,717		6,774		929		17,480
Total ACL	$	5,120	$	940	$	3,717	$	6,774	$	929	$	17,480

Changes in the fair value of the types of collateral for individually evaluated loans are reported as provision for credit loss in the period of change.  The evaluation of the need and amount of a specific allocation of the ACL and whether a loan can be removed from impairment status is made on a quarterly basis.

The following table presents the amortized cost basis of collateral-dependent individually evaluated loans as of March 31, 2024 and December 31, 2023..  

	March 31, 2024
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance
Commercial real estate	$	819	$	—	$	819
Commercial and industrial		—		12,085		12,085
Residential mortgage		1,971		—		1,971
Total Loans	$	2,790	$	12,085	$	14,875

	December 31, 2023
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance
Commercial real estate	$	826	$	—	$	826
Residential mortgage		2,137		—		2,137
Total Loans	$	2,963	$	—	$	2,963

Effective January 1, 2023, the Corporation adopted the accounting guidance in ASU 2022-02, which eliminates the recognition and measurement of a troubled debt restructuring (“TDR”).  Due to the removal of the TDR designation, the Corporation evaluates loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan.  Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contracted cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications.  Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

A loan that is considered a modified loan may be subject to the individually evaluated loan analysis if the commitment is $0.1 million or greater; otherwise, the modified loan remains in the appropriate segment of the ACL model and associated reserves are adjusted based on changes in the discounted cash flows resulting from the modification of the modified loan.  For a discussion with respect to reserve calculations regarding individually evaluated loans, refer to the “Nonrecurring Basis” section of Note 6, Fair Value Measurements.  As of March 31, 2024 and 2023, there were no modified loans that were classified as individually evaluated loans.  

The following tables present the activity in the ACL for the three-month periods ended March 31, 2024 and 2023:

Three months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
Beginning balance at January 1, 2024	$	5,120	$	940	$	3,717	$	6,774	$	929	$	—	$	17,480
Loan charge-offs		—		—		(112)		—		(506)		—		(618)
Recoveries collected		37		3		31		18		70		—		159
Credit loss (credit)/expense		(195)		71		366		225		494		—		961
ACL balance at March 31, 2024	$	4,962	$	1,014	$	4,002	$	7,017	$	987	$	—	$	17,982
Beginning balance at January 1, 2023 prior to adoption of ASC 326	$	6,345	$	979	$	2,845	$	3,160	$	877	$	430	$	14,636
Impact of adopting ASC 326		(1,143)		(15)		1,334		2,112		208		(430)		2,066
Loan charge-offs		—		—		—		(6)		(333)		—		(339)
Recoveries collected		5		5		4		18		62		—		94
Credit loss (credit)/expense		(345)		134		(428)		1,040		13		—		414
ACL balance at March 31, 2023	$	4,862	$	1,103	$	3,755	$	6,324	$	827	$	—	$	16,871

The Corporation’s methodology for estimating the ACL includes:

Segmentation.  The Corporation’s loan portfolio is segmented by homogeneous loan types that behave similarly to economic cycles.

Specific Analysis.  A specific reserve analysis is applied to certain individually evaluated loans.  These loans are evaluated quarterly generally based on collateral value, observable market value or the present value of expected future cash flows.  A specific reserve is established if the fair value is less than the loan balance.  A charge-off is recognized when the loss is quantifiable.  Individually evaluated loans not specifically analyzed reside in the Quantitative Analysis.

Quantitative Analysis.  The Corporation elected to use discounted cash flows.  Economic forecasts include but are not limited to unemployment, the Consumer Price Index, the Housing Affordability Index, and Gross State Product.  These forecasts are assumed to revert to the long term average and are utilized in the model to estimate the probability of default and the loss given default is the estimated loss rate, which varies over time.  The estimated loss rate is applied within the appropriate periods in the cash flow model to determine the net present value.  Net present value is also impacted by assumption related to the duration between default and recovery.  The reserve is based on the difference between the summation of the principal balances taking amortized costs into consideration and the summation of the net present values.

Qualitative Analysis.  Based on management’s review and analysis of internal, external and model risks, management may adjust the model output.  Management reviews the peaks and troughs of the model’s calibrations, taking into account economic forecasts to develop guardrails that serve as the basis for determining the reasonableness of the model’s output and makes adjustments as necessary.  This process challenges unexpected variability resulting from outputs beyond the model’s calibrations that appear to be unreasonable.  Management also enhances the calculation through the use of Moody’s economic forecast data in its calculation. Additionally, management may adjust the economic forecast if it is incompatible with known market conditions based on management’s experience and perspective.

The ACL is based on estimates, and actual losses may vary from current estimates.  Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ACL that is representative of the risk found in the components of the portfolio at any given date.

Credit Quality Indicators:

The Corporation’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all.  The Corporation’s internal credit risk grading system is based on debt service coverage, collateral values and other subjective factors.  Mortgage and consumer loans are defaulted to pass grade until a loan migrates to past due status.  

The Corporation has a loan review policy and annual scope report that details the level of loan review for loans in a given year.  The annual loan review provides the Credit Risk Committee with an independent analysis of the following:  (i) credit quality of the loan portfolio, (ii) compliance with loan policy, (iii) adequacy of documentation in credit files and (iv) validity of risk ratings.  

The Corporation’s internally assigned grades are as follows:

Pass-  The Corporation uses six grades of pass, including its watch rating.  Generally, a pass rating indicates that the loan is currently performing and is of high quality.

Special Mention- Assets with potential weaknesses that warrant management’s close attention and if left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.

Substandard-  Assets that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any.  Assets so classified have a well-defined weakness, or weaknesses that jeopardize the liquidation of

the debt.  Such assets are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful- Assets with all weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

Loss- Assets considered of such little value that its continuance on the books is not warranted.  This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical to defer writing off this basically worthless asset even though partial recovery may be affected in the future.

The ability of borrowers to repay commercial loans is dependent upon the success of their business and general economic conditions.  Due to the greater potential for loss within our commercial portfolio, we monitor the commercial loan portfolio through an internal risk rating system.  Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies.  Loans rated special mention or substandard have potential or well-defined weaknesses not generally found in high quality, performing loans, and require attention from management to limit loss.

The following table presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of dates presented:

(in thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Total Portfolio Loans
March 31, 2024
Commercial real estate:
Non-owner-occupied
Pass	$	1,709	$	23,394	$	66,664	$	29,960	$	53,161	$	106,806	$	1,076	$	282,770
Special Mention		—		—		—		—		744		—		—		744
Substandard		—		—		—		—		—		11,201		—		11,201
Total non-owner occupied		1,709		23,394		66,664		29,960		53,905		118,007		1,076		294,715
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other CRE
Pass		710		29,970		31,545		26,411		20,165		81,304		4,206		194,311
Special Mention		—		—		—		—		567		—		—		567
Substandard		—		—		—		—		—		2,626		600		3,226
Total all other CRE		710		29,970		31,545		26,411		20,732		83,930		4,806		198,104
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		129		16,488		337		—		—		—		1,827		18,781
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		129		16,488		337		—		—		—		1,827		18,781
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		3,553		20,963		18,794		1,949		3,022		11,860		4,397		64,538
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		105		—		105
Total all other A&D		3,553		20,963		18,794		1,949		3,022		11,965		4,397		64,643
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		9,089		45,722		63,811		22,485		8,883		17,848		78,843		246,681
Special Mention		—		536		—		—		2,047		—		3,815		6,398
Substandard		—		—		9,338		1,799		6,696		862		2,948		21,643
Total commercial and industrial		9,089		46,258		73,149		24,284		17,626		18,710		85,606		274,722
Current period gross charge-offs		—		—		56		—		41		15		—		112
Residential mortgage:
Residential mortgage - term
Pass		6,398		52,650		97,246		86,175		37,658		152,285		2,118		434,530
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		925		15		5,581		56		6,577
Total residential mortgage - term		6,398		52,650		97,246		87,100		37,673		157,866		2,174		441,107
Current period gross charge-offs		—		—		—		—		—		—		—		—
Residential mortgage - home equity
Pass		—		965		4,447		843		460		694		52,732		60,141
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		74		—		37		15		616		742
Total residential mortgage - home equity		—		965		4,521		843		497		709		53,348		60,883
Current period gross charge-offs		—		—		—		—		—		—		—		—
Consumer:
Pass		3,030		16,279		9,519		5,470		1,879		20,149		2,808		59,134
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		61		26		119		21		5		6		238
Total consumer		3,030		16,340		9,545		5,589		1,900		20,154		2,814		59,372
Current period gross charge-offs		50		371		51		11		1		22		—		506
Total Portfolio Loans
Pass		24,618		206,431		292,363		173,293		125,228		390,946		148,007		1,360,886
Special Mention		—		536		—		—		3,358		—		3,815		7,709
Substandard		—		61		9,438		2,843		6,769		20,395		4,226		43,732
Total Portfolio Loans	$	24,618	$	207,028	$	301,801	$	176,136	$	135,355	$	411,341	$	156,048	$	1,412,327
Current YTD Period:
Current period gross charge-offs	$	50	$	371	$	107	$	11	$	42	$	37	$	—	$	618

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
December 31, 2023
Commercial real estate:
Non-owner-occupied
Pass	$	23,511	$	65,878	$	30,332	$	54,270	$	40,575	$	65,134	$	1,138	$	280,838
Special Mention		—		—		—		—		—		4,331		—		4,331
Substandard		—		—		—		—		—		11,401		—		11,401
Total non-owner occupied		23,511		65,878		30,332		54,270		40,575		80,866		1,138		296,570
Current period gross charge-offs		—		—		—		—		—		87		—		87
All other CRE
Pass		30,130		27,379		27,042		20,691		22,879		60,054		4,495		192,670
Special Mention		—		—		—		644		—		—		—		644
Substandard		—		—		—		—		1,847		1,372		600		3,819
Total all other CRE		30,130		27,379		27,042		21,335		24,726		61,426		5,095		197,133
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		13,745		3,446		—		—		—		—		1,033		18,224
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		13,745		3,446		—		—		—		—		1,033		18,224
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		12,184		25,099		2,966		3,046		1,301		9,946		4,181		58,723
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		113		—		113
Total all other A&D		12,184		25,099		2,966		3,046		1,301		10,059		4,181		58,836
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		52,004		66,559		24,387		11,753		8,872		10,052		78,992		252,619
Special Mention		558		—		—		—		—		—		—		558
Substandard		—		9,352		1,854		6,806		98		837		2,480		21,427
Total commercial and industrial		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Current period gross charge-offs		100		103		35		166		—		19		—		423
Residential mortgage:
Residential mortgage - term
Pass		51,625		94,723		88,835		38,228		25,375		130,402		1,577		430,765
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		138		929		17		98		5,825		57		7,064
Total residential mortgage - term		51,625		94,861		89,764		38,245		25,473		136,227		1,634		437,829
Current period gross charge-offs		—		—		—		—		—		13		—		13
Residential mortgage - home equity
Pass		1,127		4,657		864		475		286		489		53,467		61,365
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		38		—		16		623		677
Total residential mortgage - home equity		1,127		4,657		864		513		286		505		54,090		62,042
Current period gross charge-offs		—		—		—		—		—		42		—		42
Consumer:
Pass		18,299		10,616		6,361		2,206		510		20,365		2,873		61,230
Special Mention		—		—		—		—		—		—		—		—
Substandard		14		35		113		23		6		2		6		199
Total consumer		18,313		10,651		6,474		2,229		516		20,367		2,879		61,429
Current period gross charge-offs		236		223		74		8		4		329		—		874
Total Portfolio Loans
Pass		202,625		298,357		180,787		130,669		99,798		296,442		147,756		1,356,434
Special Mention		558		—		—		644		—		4,331		—		5,533
Substandard		14		9,525		2,896		6,884		2,049		19,566		3,766		44,700
Total Portfolio Loans	$	203,197	$	307,882	$	183,683	$	138,197	$	101,847	$	320,339	$	151,522	$	1,406,667
Current YTD Period:
Current period gross charge-offs	$	336	$	326	$	109	$	174	$	4	$	490	$	—	$	1,439

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.

The following tables present loan balances by year of origination segregated by performing and non-performing loans for the periods presented:

(in thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Total Portfolio Loans
March 31, 2024
Commercial real estate:
Non-owner-occupied
Performing	$	1,709	$	23,394	$	66,664	$	29,960	$	53,905	$	117,788	$	1,076	$	294,496
Nonperforming		—		—		—		—		—		219		—		219
Total non-owner occupied		1,709		23,394		66,664		29,960		53,905		118,007		1,076		294,715
All other CRE
Performing		710		29,970		31,545		26,411		20,732		83,331		4,806		197,505
Nonperforming		—		—		—		—		—		599		—		599
Total all other CRE		710		29,970		31,545		26,411		20,732		83,930		4,806		198,104
Acquisition and development:
1-4 family residential construction
Performing		129		16,488		337		—		—		—		1,827		18,781
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		129		16,488		337		—		—		—		1,827		18,781
All other A&D
Performing		3,553		20,963		18,794		1,949		3,022		11,860		4,397		64,538
Nonperforming		—		—		—		—		—		105		—		105
Total all other A&D		3,553		20,963		18,794		1,949		3,022		11,965		4,397		64,643
Commercial and industrial:
Performing		9,089		46,258		63,811		22,538		17,626		18,710		84,597		262,629
Nonperforming		—		—		9,338		1,746		—		—		1,009		12,093
Total commercial and industrial		9,089		46,258		73,149		24,284		17,626		18,710		85,606		274,722
Residential mortgage:
Residential mortgage - term
Performing		6,398		52,650		97,246		86,965		37,673		155,443		2,143		438,518
Nonperforming		—		—		—		135		—		2,423		31		2,589
Total residential mortgage - term		6,398		52,650		97,246		87,100		37,673		157,866		2,174		441,107
Residential mortgage - home equity
Performing		—		965		4,447		843		460		693		53,125		60,533
Nonperforming		—		—		74		—		37		16		223		350
Total residential mortgage - home equity		—		965		4,521		843		497		709		53,348		60,883
Consumer:
Performing		3,030		16,309		9,520		5,505		1,900		20,122		2,814		59,200
Nonperforming		—		31		25		84		—		32		—		172
Total consumer		3,030		16,340		9,545		5,589		1,900		20,154		2,814		59,372
Total Portfolio Loans
Performing		24,618		206,997		292,364		174,171		135,318		407,947		154,785		1,396,200
Nonperforming		—		31		9,437		1,965		37		3,394		1,263		16,127
Total Portfolio Loans	$	24,618	$	207,028	$	301,801	$	176,136	$	135,355	$	411,341	$	156,048	$	1,412,327

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
December 31, 2023
Commercial real estate:
Non-owner-occupied
Performing	$	23,511	$	65,878	$	30,332	$	54,270	$	40,575	$	80,639	$	1,138	$	296,343
Nonperforming		—		—		—		—		—		227		—		227
Total non-owner occupied		23,511		65,878		30,332		54,270		40,575		80,866		1,138		296,570
All other CRE
Performing		30,130		27,379		27,042		21,335		24,726		60,827		5,095		196,534
Nonperforming		—		—		—		—		—		599		—		599
Total all other CRE		30,130		27,379		27,042		21,335		24,726		61,426		5,095		197,133
Acquisition and development:
1-4 family residential construction
Performing		13,745		3,446		—		—		—		—		1,033		18,224
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		13,745		3,446		—		—		—		—		1,033		18,224
All other A&D
Performing		12,184		25,099		2,966		3,046		1,301		9,946		4,181		58,723
Nonperforming		—		—		—		—		—		113		—		113
Total all other A&D		12,184		25,099		2,966		3,046		1,301		10,059		4,181		58,836
Commercial and industrial:
Performing		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Nonperforming		—		—		—		—		—		—		—		—
Total commercial and industrial		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Residential mortgage:
Residential mortgage - term
Performing		51,625		94,722		89,629		38,245		25,375		133,526		1,603		434,725
Nonperforming		—		139		135		—		98		2,701		31		3,104
Total residential mortgage - term		51,625		94,861		89,764		38,245		25,473		136,227		1,634		437,829
Residential mortgage - home equity
Performing		1,127		4,657		864		475		286		488		53,802		61,699
Nonperforming		—		—		—		38		—		17		288		343
Total residential mortgage - home equity		1,127		4,657		864		513		286		505		54,090		62,042
Consumer:
Performing		18,304		10,616		6,405		2,229		516		20,367		2,879		61,316
Nonperforming		9		35		69		—		—		—		—		113
Total consumer		18,313		10,651		6,474		2,229		516		20,367		2,879		61,429
Total Portfolio Loans
Performing		203,188		307,708		183,479		138,159		101,749		316,682		151,203		1,402,168
Nonperforming		9		174		204		38		98		3,657		319		4,499
Total Portfolio Loans	$	203,197	$	307,882	$	183,683	$	138,197	$	101,847	$	320,339	$	151,522	$	1,406,667