Loans and Allowance for Credit Losses on Loans

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loans and Allowance for Credit Losses on Loans

NOTE 5. Loans and Allowance for Credit Losses on Loans

The composition of loans at September 30, 2024 and December 31, 2023 was as follows:

	September 30,			December 31,
	2024			2023
	(in thousands)
Mortgage real estate loans:
Construction & Secured by Farmland	$	97,170		$	84,145
HELOCs		50,452			47,674
Residential First Lien - Investor		106,323			117,431
Residential First Lien - Owner Occupied		198,570			178,180
Residential Junior Liens		11,956			12,831
Commercial - Owner Occupied		273,249			251,456
Commercial - Non-Owner Occupied & Multifamily		357,351			348,879
Commercial and industrial loans:
SBA PPP loans		34			51
Other commercial and industrial loans		111,130			107,777
Marine loans		225,902			251,168
Consumer loans		32,063			42,419
Overdrafts		215			253
Other loans		11,932			12,895
Total loans	$	1,476,347		$	1,455,159
Net deferred loan costs and premiums		6,981			7,527
Allowance for credit losses		(15,303	)		(14,493	)
	$	1,468,025		$	1,448,193

At September 30, 2024, the Company was servicing $13.9 million of loans for other financial institutions which are not included in the table above. Also excluded from the table above are net servicing assets of $239 thousand at September 30, 2024, which are recorded in other assets in the Consolidated Balance Sheets. When loans are sold with servicing retained, servicing assets are recorded which represent the Company's right to service loans that were sold. Servicing assets are initially recorded by the Company at fair value and are subsequently amortized in proportion to, and over the period of, estimated net servicing income.

Changes in the allowance for credit losses on loans for the three and nine months ended September 30, 2024 and 2023 were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
	(in thousands)
Balance, beginning	$	15,014		$	14,511		$	14,493		$	11,218
Cumulative effect adjustment for adoption of ASC 326		—			—			—			2,077
Provision for credit losses		1,526			218			2,315			1,337
Recoveries added to the allowance		145			31			754			255
Credit losses charged to the allowance		(1,382	)		(187	)		(2,259	)		(314	)
Balance, ending	$	15,303		$	14,573		$	15,303		$	14,573

Past due loans by class at September 30, 2024 and December 31, 2023 were as follows:

	September 30, 2024
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	6,781	$	—	$	—	$	6,781	$	90,389	$	97,170	$	—
HELOCs		17		—		—		17		50,435		50,452		—
Residential First Lien - Investor		—		—		472		472		105,851		106,323		—
Residential First Lien - Owner Occupied		—		141		278		419		198,151		198,570		247
Residential Junior Liens		15		—		—		15		11,941		11,956		—
Commercial - Owner Occupied		—		—		—		—		273,249		273,249		—
Commercial - Non-Owner Occupied & Multifamily		—		—		—		—		357,351		357,351		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		34		34		—
Other commercial and industrial loans		299		—		—		299		110,831		111,130		—
Marine loans		—		—		—		—		225,902		225,902		—
Consumer loans		45		—		169		214		31,849		32,063		87
Overdrafts		—		—		—		—		215		215		—
Other loans		—		—		—		—		11,932		11,932		—
Total	$	7,157	$	141	$	919	$	8,217	$	1,468,130	$	1,476,347	$	334

	December 31, 2023
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	—	$	84,145	$	84,145	$	—
HELOCs		—		—		—		—		47,674		47,674		—
Residential First Lien - Investor		844		253		—		1,097		116,334		117,431		—
Residential First Lien - Owner Occupied		—		78		149		227		177,953		178,180		—
Residential Junior Liens		—		—		9		9		12,822		12,831		—
Commercial - Owner Occupied		—		—		—		—		251,456		251,456		—
Commercial - Non-Owner Occupied & Multifamily		—		—		—		—		348,879		348,879		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		51		51		—
Other commercial and industrial loans		9		—		26		35		107,742		107,777		14
Marine loans		—		—		552		552		250,616		251,168		—
Consumer loans		173		—		167		340		42,079		42,419		167
Overdrafts		—		—		—		—		253		253		—
Other loans		—		—		—		—		12,895		12,895		—
Total	$	1,026	$	331	$	903	$	2,260	$	1,452,899	$	1,455,159	$	181

Nonaccrual loans by class at September 30, 2024 and December 31, 2023 were as follows:

	September 30, 2024						December 31, 2023
	(in thousands)						(in thousands)
	Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans		Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	95	$	—	$	95
HELOCs		—		—		—		15		—		15
Residential First Lien - Investor		472		—		472		1,085		—		1,085
Residential First Lien - Owner Occupied		104		—		104		228		—		228
Residential Junior Liens		—		—		—		11		—		11
Commercial - Owner Occupied		749		—		749		22		—		22
Commercial - Non-Owner Occupied & Multifamily		—		—		—		3,625		—		3,625
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		46		891		937		12		—		12
Marine loans		—		—		—		552		—		552
Consumer loans		82		—		82		—		—		—
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total	$	1,453	$	891	$	2,344	$	5,645	$	—	$	5,645

The allowance for credit losses on loans by segment at September 30, 2024 and December 31, 2023 was as follows:

	As of and For the Nine Months Ended
	September 30, 2024
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	772		$	4,725		$	6,224		$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Charge-Offs		(94	)		(127	)		(7	)		(83	)		(1,457	)		(376	)		(115	)		—		(2,259	)
Recoveries		100			304			162			44			—			132			12			—		754
Provision		300			(112	)		(502	)		377			1,995			245			12			—		2,315
Ending balance	$	1,078		$	4,790		$	5,877		$	1,365		$	1,691		$	199		$	303		$	—	$	15,303
Ending balance: Individually evaluated for impairment	$	—		$	—		$	—		$	268		$	—		$	—		$	—		$	—	$	268
Ending balance: Collectively evaluated for impairment	$	1,078		$	4,790		$	5,877		$	1,097		$	1,691		$	199		$	303		$	—	$	15,035
Loans:
Ending balance	$	97,170		$	367,301		$	630,600		$	111,164		$	225,902		$	32,063		$	12,147		$	—	$	1,476,347
Ending balance: Individually evaluated for impairment	$	—		$	545		$	749		$	891		$	—		$	82		$	—		$	—	$	2,267
Ending balance: Collectively evaluated for impairment	$	97,170		$	366,756		$	629,851		$	110,273		$	225,902		$	31,981		$	12,147		$	—	$	1,474,080

	As of and For the Year Ended
	December 31, 2023
	(in thousands)
	Construction and Farmland			Residential Real Estate		Commercial Real Estate & MultiFamily		Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	2,714		$	1,735	$	2,221	$	2,222		$	1,555		$	299		$	472		$	—	$	11,218
Cumulative effect adjustment for adoption of ASC 326		(1,840	)		1,933		3,584		(1,102	)		(285	)		(123	)		(90	)		—		2,077
Charge-Offs		—			—		—		(312	)		(126	)		(121	)		(182	)		—		(741	)
Recoveries		8			18		—		43			—			48			181			—		298
Provision		(110	)		1,039		419		176			9			95			13			—		1,641
Ending balance	$	772		$	4,725	$	6,224	$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Ending balance: Individually evaluated for impairment	$	—		$	—	$	—	$	—		$	—		$	—		$	—		$	—	$	—
Ending balance: Collectively evaluated for impairment	$	772		$	4,725	$	6,224	$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Loans:
Ending balance	$	84,145		$	356,116	$	600,335	$	107,828		$	251,168		$	42,419		$	13,148		$	—	$	1,455,159
Ending balance: Individually evaluated for impairment	$	95		$	1,288	$	3,639	$	—		$	552		$	—		$	—		$	—	$	5,574
Ending balance: Collectively evaluated for impairment	$	84,050		$	354,828	$	596,696	$	107,828		$	250,616		$	42,419		$	13,148		$	—	$	1,449,585

The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment:

	September 30, 2024						December 31, 2023
	(in thousands)						(in thousands)
(in thousands)	Real Estate Collateral		Other Collateral		Total		Real Estate Collateral		Other Collateral		Total
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	95	$	—	$	95
HELOCs		—		—		—		—		—		—
Residential First Lien - Investor		472		—		472		1,086		—		1,086
Residential First Lien - Owner Occupied		73		—		73		194		—		194
Residential Junior Liens		—		—		—		8		—		8
Commercial - Owner Occupied		749		—		749		14		—		14
Commercial - Non-Owner Occupied & Multifamily		—		—		—		3,625		—		3,625
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		—		891		891		—		—		—
Marine loans		—		—		—		—		552		552
Consumer loans		—		82		82		—		—		—
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
	$	1,294	$	973	$	2,267	$	5,022	$	552	$	5,574

The Company did not identify any significant changes in the extent to which collateral secures its collateral dependent loans, whether in the form of general deterioration or from other factors during the period ended September 30, 2024.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis is performed on a quarterly basis. The following table presents risk ratings by loan portfolio segment and origination year. Description of these ratings are as follows:

Pass	Pass loans exhibit acceptable history of profits, cash flow ability and liquidity. Sufficient cash flow exists to service the loan. All obligations have been paid by the borrower in an as agreed manner.
Special Mention	Special mention loans exhibit negative trends and potential weakness that, if left uncorrected, may negatively affect the borrower’s ability to repay its obligations. Loan relationships with stale financial statements at their annual review will also cause a downgrade to special mention until current financials are received and upgrade is approved. The risk of default is not imminent and the borrower still demonstrates sufficient financial strength to service debt.
Classified	Classified loans include loans rated Substandard, Doubtful and Loss.
	•Substandard loans exhibit well defined weaknesses resulting in a higher probability of default. The borrowers exhibit adverse financial trends and a diminishing ability or willingness to service debt.
	•Doubtful loans exhibit all of the characteristics inherent in substandard loans; however given the severity of weaknesses, the collection of 100% of the principal is unlikely under current conditions.
	•Loss loans are considered uncollectible over a reasonable period of time and of such little value that its continuance as a bankable asset is not warranted.

Credit quality information by class at September 30, 2024 was as follows:

	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	31,094	$	25,570	$	15,675	$	3,886	$	3,359	$	5,173	$	2,800	$	—	$	87,557
Special Mention		—		6,968		1,156		—		1,456		—		—		—		9,580
Classified		—		—		—		—		—		33		—		—		33
Total	$	31,094	$	32,538	$	16,831	$	3,886	$	4,815	$	5,206	$	2,800	$	—	$	97,170
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	94	$	—	$	—	$	94
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	50,409	$	—	$	50,409
Special Mention		—		—		—		—		—		—		43		—		43
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	50,452	$	—	$	50,452
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	14
Residential First Lien - Investor
Pass	$	5,793	$	15,500	$	18,963	$	28,090	$	10,382	$	22,782	$	—	$	1,116	$	102,626
Special Mention		—		699		1,076		1,151		—		299		—		—		3,225
Classified		—		—		—		472		—		—		—		—		472
Total	$	5,793	$	16,199	$	20,039	$	29,713	$	10,382	$	23,081	$	—	$	1,116	$	106,323
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	25,714	$	59,419	$	33,569	$	22,887	$	34,115	$	20,356	$	—	$	487	$	196,547
Special Mention		46		624		—		—		—		983		—		—		1,653
Classified		—		—		—		—		—		370		—		—		370
Total	$	25,760	$	60,043	$	33,569	$	22,887	$	34,115	$	21,709	$	—	$	487	$	198,570
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	103	$	—	$	—	$	103
Residential Junior Liens
Pass	$	553	$	2,359	$	2,662	$	3,042	$	1,265	$	1,811	$	—	$	179	$	11,871
Special Mention		—		—		—		—		71		—		—		—		71
Classified		—		—		—		—		—		—		—		14		14
Total	$	553	$	2,359	$	2,662	$	3,042	$	1,336	$	1,811	$	—	$	193	$	11,956
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	10	$	—	$	—	$	10
Commercial - Owner Occupied
Pass	$	23,795	$	37,505	$	71,072	$	32,937	$	23,461	$	47,038	$	1,262	$	4,092	$	241,162
Special Mention		—		367		8,870		6,069		345		15,687		—		—		31,338
Classified		—		—		—		749		—		—		—		—		749
Total	$	23,795	$	37,872	$	79,942	$	39,755	$	23,806	$	62,725	$	1,262	$	4,092	$	273,249
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7

	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial - Non-Owner Occupied & Multifamily
Pass	$	15,088	$	57,059	$	83,489	$	56,549	$	66,248	$	45,400	$	6,572	$	5,375	$	335,780
Special Mention		—		—		11,676		7,631		1,463		801		—		—		21,571
Classified		—		—		—		—		—		—		—		—		—
Total	$	15,088	$	57,059	$	95,165	$	64,180	$	67,711	$	46,201	$	6,572	$	5,375	$	357,351
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	—	$	34	$	—	$	—	$	—	$	—	$	34
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	34	$	—	$	—	$	—	$	—	$	34
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	21,320	$	9,149	$	21,289	$	4,933	$	3,611	$	3,872	$	37,854	$	2,054	$	104,082
Special Mention		340		1,191		—		2,187		—		4		1,873		357		5,952
Classified		—		891		—		—		159		—		—		46		1,096
Total	$	21,660	$	11,231	$	21,289	$	7,120	$	3,770	$	3,876	$	39,727	$	2,457	$	111,130
Current period gross charge-offs	$	—	$	11	$	9	$	—	$	63	$	—	$	108	$	—	$	191
Marine loans
Pass	$	—	$	74,588	$	118,605	$	32,062	$	647	$	—	$	—	$	—	$	225,902
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	74,588	$	118,605	$	32,062	$	647	$	—	$	—	$	—	$	225,902
Current period gross charge-offs	$	—	$	1,370	$	87	$	—	$	—	$	—	$	—	$	—	$	1,457
Consumer loans
Pass	$	2,382	$	2,289	$	11,248	$	5,558	$	7,578	$	1,145	$	1,746	$	35	$	31,981
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		82		—		—		—		—		—		82
Total	$	2,382	$	2,289	$	11,330	$	5,558	$	7,578	$	1,145	$	1,746	$	35	$	32,063
Current period gross charge-offs	$	—	$	12	$	—	$	25	$	167	$	—	$	64	$	—	$	268
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		215		—		—		—		—		—		—		—		215
Total	$	215	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	215
Current period gross charge-offs	$	115	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	115
Other loans
Pass	$	—	$	59	$	9,492	$	—	$	—	$	2,299	$	80	$	2	$	11,932
Special Mention		—		—		—		—		—		—		—		—		—

	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	59	$	9,492	$	—	$	—	$	2,299	$	80	$	2	$	11,932
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	125,739	$	283,497	$	386,064	$	189,978	$	150,666	$	149,876	$	100,723	$	13,340	$	1,399,883
Special Mention		386		9,849		22,778		17,038		3,335		17,774		1,916		357		73,433
Classified		215		891		82		1,221		159		403		—		60		3,031
Total	$	126,340	$	294,237	$	408,924	$	208,237	$	154,160	$	168,053	$	102,639	$	13,757	$	1,476,347
Total current period gross charge-offs	$	115	$	1,393	$	96	$	25	$	230	$	214	$	186	$	—	$	2,259

Credit quality information by class at December 31, 2023 was as follows:

	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	34,617	$	21,460	$	7,584	$	4,851	$	2,389	$	2,829	$	7,052	$	57	$	80,839
Special Mention		—		1,173		—		—		1,040		815		—		—		3,028
Classified		—		—		—		145		—		133		—		—		278
Total	$	34,617	$	22,633	$	7,584	$	4,996	$	3,429	$	3,777	$	7,052	$	57	$	84,145
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	47,610	$	—	$	47,610
Special Mention		—		—		—		—		—		—		49		—		49
Classified		—		—		—		—		—		—		15		—		15
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	47,674	$	—	$	47,674
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Investor
Pass	$	19,394	$	23,205	$	31,371	$	10,667	$	4,054	$	22,265	$	—	$	367	$	111,323
Special Mention		—		1,273		—		1,180		626		1,944		—		—		5,023
Classified		—		—		1,085		—		—		—		—		—		1,085
Total	$	19,394	$	24,478	$	32,456	$	11,847	$	4,680	$	24,209	$	—	$	367	$	117,431
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	59,007	$	33,793	$	23,749	$	35,783	$	3,932	$	20,413	$	—	$	589	$	177,266
Special Mention		—		—		—		—		—		258		—		—		258
Classified		—		—		—		—		—		656		—		—		656
Total	$	59,007	$	33,793	$	23,749	$	35,783	$	3,932	$	21,327	$	—	$	589	$	178,180
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Junior Liens
Pass	$	2,562	$	2,902	$	3,429	$	1,486	$	606	$	1,613	$	—	$	189	$	12,787
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		27		—		17		44
Total	$	2,562	$	2,902	$	3,429	$	1,486	$	606	$	1,640	$	—	$	206	$	12,831
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial - Owner Occupied
Pass	$	36,736	$	68,868	$	40,707	$	22,871	$	13,971	$	50,059	$	3,088	$	4,364	$	240,664
Special Mention		—		3,817		64		2,145		1,877		1,402		—		—		9,305
Classified		—		—		967		498		—		8		—		14		1,487
Total	$	36,736	$	72,685	$	41,738	$	25,514	$	15,848	$	51,469	$	3,088	$	4,378	$	251,456
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Non-Owner Occupied & Multifamily
Pass	$	56,510	$	88,518	$	64,005	$	65,075	$	15,563	$	34,619	$	1,196	$	5,651	$	331,137
Special Mention		624		4,748		3,685		5,060		—		—		—		—		14,117
Classified		—		—		—		2,355		—		1,270		—		—		3,625
Total	$	57,134	$	93,266	$	67,690	$	72,490	$	15,563	$	35,889	$	1,196	$	5,651	$	348,879
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	51	$	—	$	—	$	—	$	—	$	—	$	51
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	51	$	—	$	—	$	—	$	—	$	—	$	51
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	15,052	$	26,798	$	8,659	$	4,824	$	2,629	$	3,898	$	43,188	$	1,005	$	106,053
Special Mention		1,125		—		—		13		1		9		220		344		1,712
Classified		—		—		—		3		—		—		9		—		12
Total	$	16,177	$	26,798	$	8,659	$	4,840	$	2,630	$	3,907	$	43,417	$	1,349	$	107,777
Current period gross charge-offs	$	231	$	81	$	—	$	—	$	—	$	—	$	—	$	—	$	312
Marine loans
Pass	$	86,001	$	128,456	$	35,492	$	667	$	—	$	—	$	—	$	—	$	250,616
Special Mention		—		—		—		—		—		—		—		—		—
Classified		367		185		—		—		—		—		—		—		552
Total	$	86,368	$	128,641	$	35,492	$	667	$	—	$	—	$	—	$	—	$	251,168

	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Current period gross charge-offs	$	—	$	126	$	—	$	—	$	—	$	—	$	—	$	—	$	126
Consumer loans
Pass	$	3,427	$	13,950	$	6,205	$	8,687	$	1,747	$	21	$	8,354	$	28	$	42,419
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	3,427	$	13,950	$	6,205	$	8,687	$	1,747	$	21	$	8,354	$	28	$	42,419
Current period gross charge-offs	$	—	$	3	$	—	$	66	$	—	$	—	$	52	$	—	$	121
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		253		—		—		—		—		—		—		—		253
Total	$	253	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	253
Current period gross charge-offs	$	182	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	182
Other loans
Pass	$	69	$	10,176	$	—	$	—	$	—	$	2,587	$	55	$	8	$	12,895
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	69	$	10,176	$	—	$	—	$	—	$	2,587	$	55	$	8	$	12,895
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	313,375	$	418,126	$	221,252	$	154,911	$	44,891	$	138,304	$	110,543	$	12,258	$	1,413,660
Special Mention		1,749		11,011		3,749		8,398		3,544		4,428		269		344		33,492
Classified		620		185		2,052		3,001		—		2,094		24		31		8,007
Total	$	315,744	$	429,322	$	227,053	$	166,310	$	48,435	$	144,826	$	110,836	$	12,633	$	1,455,159
Total current period gross charge-offs	$	413	$	210	$	—	$	66	$	—	$	—	$	52	$	—	$	741

Unfunded Commitments: The Company maintains a separate reserve for credit losses on unfunded commitments, which is included in Other Liabilities on the Consolidated Balance Sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded, utilizing the same models and approaches for the Company's other loan portfolio segments, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that maybe drawn prior to the cancellation of the arrangement.

During the three months ended September 30, 2024, the unfunded commitment reserve increased by $19 thousand through a charge to the provision for credit losses in the consolidated income statement. For the nine months ended September 30, 2024, there was a reduction to the unfunded commitment reserve of $115 thousand recorded as a credit to the provision for credit losses in the consolidated income statement. On January 1, 2023, the Company recorded an adjustment for unfunded commitments of $406 thousand for the adoption of ASC 326. For the nine months ended September 30, 2023, a reduction to the unfunded commitment reserve of $54 thousand was recorded as a credit to the provision for credit losses in the consolidated income statement, and there was no adjustment during the three months ended September 30, 2023. The reserve for unfunded commitments at September 30, 2024 and 2023 and December 31, 2023 was $364 thousand, $417 thousand, and $479 thousand, respectively.