XML 23 R12.htm IDEA: XBRL DOCUMENT v3.24.2.u1
LOANS AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2024
LOANS AND ALLOWANCE FOR CREDIT LOSSES [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES
NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans are comprised of the following:

 
June 30,
2024
    
December 31,
2023
  
             
Residential real estate
  
$
359,348
    
$
319,504
  
Commercial real estate:
                
Owner-occupied
    
83,693
      
82,356
  
Nonowner-occupied
    
198,408
      
178,201
  
   Construction
    
69,683
      
62,337
  
Commercial and industrial
    
162,884
      
157,298
  
Consumer:
                
Automobile
    
56,715
      
61,461
  
Home equity
    
40,177
      
35,893
  
Other
    
69,376
      
74,850
  
     
1,040,284
      
971,900
  
Less:  Allowance for credit losses
    
(9,431
)
    
(8,767
)
                 
Loans, net
  
$
1,030,853
    
$
963,133
  

At June 30, 2024 and December 31, 2023, net deferred loan origination costs were $635 and $794, respectively. At June 30, 2024 and December 31, 2023, net unamortized loan purchase premiums were $572 and $687, respectively.

The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of June 30, 2024 and December 31, 2023:

June 30,2024
  
Loans Past Due
90 Days And
Still Accruing
    
Nonaccrual
Loans With No
ACL
    
Nonaccrual
Loans With an
ACL
    
Total
Nonaccrual
Loans
  
                         
Residential real estate
  
$
37
    
$
1,426
    
$
1,413
    
$
2,839
  
Commercial real estate:
                                
Owner-occupied
    
—
      
863
      
—
      
863
  
Nonowner-occupied
    
—
      
—
      
230
      
230
  
Construction
    
—
      
—
      
3
      
3
  
Commercial and industrial
    
—
      
88
      
45
      
133
  
Consumer:
                                
Automobile
    
72
      
—
      
113
      
113
  
Home equity
    
—
      
26
      
205
      
231
  
Other
    
505
      
—
      
210
      
210
  
Total
  
$
614
    
$
2,403
    
$
2,219
    
$
4,622
  

December 31, 2023
  
Loans Past Due
90 Days And
Still Accruing
    
Nonaccrual
Loans With No
ACL
    
Nonaccrual
Loans With an
ACL
    
Total
Nonaccrual
Loans
  
                         
Residential real estate
  
$
9
    
$
—
    
$
1,234
    
$
1,234
  
Commercial real estate:
                                
Owner-occupied
    
—
      
775
      
—
      
775
  
Nonowner-occupied
    
—
      
—
      
61
      
61
  
Construction
    
—
      
—
      
1
      
1
  
Commercial and industrial
    
—
      
—
      
48
      
48
  
Consumer:
                                
Automobile
    
56
      
—
      
78
      
78
  
Home equity
    
—
      
—
      
95
      
95
  
Other
    
54
      
—
      
100
      
100
  
Total
  
$
119
    
$
775
    
$
1,617
    
$
2,392
  

The Company recognized $15 and $19 of interest income in nonaccrual loans during the three and six months ended June 30, 2024, respectively.

The following table presents the aging of the recorded investment of past due loans by class of loans as of June 30, 2024 and December 31, 2023:

June 30, 2024
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 Days
Or More
Past Due
    
Total
Past Due
    
Loans Not
Past Due
    
Total
  
                                     
Residential real estate
  
$
1,824
    
$
2,499
    
$
645
    
$
4,968
    
$
354,380
    
$
359,348
  
Commercial real estate:
                                                
Owner-occupied
    
372
      
170
      
694
      
1,236
      
82,457
      
83,693
  
Nonowner-occupied
    
599
      
—
      
—
      
599
      
197,809
      
198,408
  
Construction
    
31
      
3
      
—
      
34
      
69,649
      
69,683
  
Commercial and industrial
    
1,119
      
4
      
44
      
1,167
      
161,717
      
162,884
  
Consumer:
                                                
Automobile
    
913
      
143
      
181
      
1,237
      
55,478
      
56,715
  
Home equity
    
357
      
218
      
83
      
658
      
39,519
      
40,177
  
Other
    
494
      
167
      
710
      
1,371
      
68,005
      
69,376
  
Total
  
$
5,709
    
$
3,204
    
$
2,357
    
$
11,270
    
$
1,029,014
    
$
1,040,284
  

December 31, 2023
  
30-59
Days
Past Due
    
60-89
Days
Past Due
    
90 Days
Or More
Past Due
    
Total
Past Due
    
Loans Not
Past Due
    
Total
  
                                     
Residential real estate
  
$
2,705
    
$
368
    
$
481
    
$
3,554
    
$
315,950
    
$
319,504
  
Commercial real estate:
                                                
Owner-occupied
    
2,580
      
—
      
775
      
3,355
      
79,001
      
82,356
  
Nonowner-occupied
    
681
      
—
      
—
      
681
      
177,520
      
178,201
  
Construction
    
—
      
—
      
—
      
—
      
62,337
      
62,337
  
Commercial and industrial
    
3,338
      
—
      
48
      
3,386
      
153,912
      
157,298
  
Consumer:
                                                
Automobile
    
782
      
210
      
117
      
1,109
      
60,352
      
61,461
  
Home equity
    
353
      
62
      
95
      
510
      
35,383
      
35,893
  
Other
    
658
      
121
      
148
      
927
      
73,923
      
74,850
  
Total
  
$
11,097
    
$
761
    
$
1,664
    
$
13,522
    
$
958,378
    
$
971,900
  

Credit Quality Indicators:

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. These risk categories are represented by a loan grading scale from 1 through 11. The Company analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and “classified” assets. The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be loans that are graded 9 through 11. The Company’s risk categories are reviewed at least annually on loans that have aggregate borrowing amounts that meet or exceed $1,000.

The Company uses the following definitions for its criticized loan risk ratings:

Special Mention.  Loans classified as “special mention” are graded 8 and indicate considerable risk due to deterioration of repayment (in the earliest stages) due to potential weak primary repayment source, or payment delinquency.  These loans will be under constant supervision, are not classified and do not expose the institution to sufficient risks to warrant classification.  These deficiencies should be correctable within the normal course of business, although significant changes in company structure or policy may be necessary to correct the deficiencies.  These loans are considered bankable assets with no apparent loss of principal or interest envisioned.  The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted. 

The Company uses the following definitions for its classified loan risk ratings:

Substandard.  Loans classified as “substandard” are graded 9 and represent very high risk, serious delinquency, nonaccrual, or unacceptable credit. Repayment through the primary source of repayment is in jeopardy due to the existence of one or more well-defined weaknesses, and the collateral pledged may inadequately protect collection of the loans. Loss of principal is not likely if weaknesses are corrected, although financial statements normally reveal significant weakness. Loans are still considered collectible, although loss of principal is more likely than with special mention loans. Collateral liquidation is considered likely to satisfy debt.

Doubtful.  Loans classified as “doubtful” are graded 10 and display a high probability of loss, although the amount of actual loss at the time of classification is undetermined. This classification should be temporary until such time that actual loss can be identified, or improvements are made to reduce the seriousness of the classification. These loans exhibit all substandard characteristics with the addition that weaknesses make collection or liquidation in full highly questionable and improbable. This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value. Loss is deferred until certain important and reasonable specific pending factors that may strengthen the credit can be more accurately determined. These factors may include proposed acquisitions, liquidation procedures, capital injection, receipt of additional collateral, mergers, or refinancing plans. A doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded substandard.

Loss.  Loans classified as “loss” are graded 11 and are considered uncollectible and are of such little value that their continuance as bankable assets is not warranted.  This classification does not mean that the credit has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset yielding such a minimum value even though partial recovery may be affected in the future.  Amounts classified as loss should be promptly charged off.

As of June 30, 2024 and December 31, 2023, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
June 30, 2024
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial real estate:
                                                
   Owner-occupied
                                                
     Risk Rating
                                                
        Pass
  
$
7,562
    
$
17,699
    
$
7,801
    
$
10,388
    
$
5,666
    
$
17,320
    
$
548
    
$
66,984
  
     Special Mention
    
171
      
—
      
—
      
13,239
      
—
      
565
      
100
      
14,075
  
        Substandard
    
—
      
—
      
—
      
—
      
—
      
2,335
      
299
      
2,634
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
7,733
    
$
17,699
    
$
7,801
    
$
23,627
    
$
5,666
    
$
20,220
    
$
947
    
$
83,693
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  

                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
June 30, 2024
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial real estate:
                                                
   Nonowner-occupied
                                                
     Risk Rating
                                                
        Pass
  
$
21,760
    
$
10,260
    
$
31,439
    
$
31,534
    
$
19,809
    
$
68,941
    
$
5,933
    
$
189,676
  
     Special Mention
    
223
      
2,345
      
1,014
      
753
      
214
      
1,009
      
—
      
5,558
  
        Substandard
    
—
      
—
      
—
      
—
      
3,174
      
—
      
—
      
3,174
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
21,983
    
$
12,605
    
$
32,453
    
$
32,287
    
$
23,197
    
$
69,950
    
$
5,933
    
$
198,408
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
June 30, 2024
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial real estate:
                                                
   Construction
                                                
     Risk Rating
                                                
        Pass
  
$
5,564
    
$
31,166
    
$
27,417
    
$
1,174
    
$
290
    
$
2,959
    
$
231
    
$
68,801
  
     Special Mention
    
—
      
649
      
—
      
—
      
—
      
47
      
—
      
696
  
        Substandard
    
—
      
—
      
—
      
—
      
—
      
186
      
—
      
186
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
5,564
    
$
31,815
    
$
27,417
    
$
1,174
    
$
290
    
$
3,192
    
$
231
    
$
69,683
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
June 30, 2024
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial and Industrial:
                                                
     Risk Rating
                                                
        Pass
  
$
6,110
    
$
7,793
    
$
28,658
    
$
25,957
    
$
29,612
    
$
27,262
    
$
28,284
    
$
153,676
  
     Special Mention
    
1,062
      
194
      
79
      
432
      
205
      
206
      
3,253
      
5,431
  
        Substandard
    
—
      
127
      
—
      
41
      
1,283
      
151
      
2,175
      
3,777
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
7,172
    
$
8,114
    
$
28,737
    
$
26,430
    
$
31,100
    
$
27,619
    
$
33,712
    
$
162,884
  
                                                                 
Current Period gross charge-offs
  
$
107
    
$
—
    
$
—
    
$
1
    
$
—
    
$
—
    
$
1
    
$
109
  

                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial real estate:
                                                
   Owner-occupied
                                                
     Risk Rating
                                                
        Pass
  
$
18,120
    
$
7,911
    
$
10,679
    
$
5,973
    
$
6,125
    
$
15,925
    
$
459
    
$
65,192
  
     Special Mention
    
—
      
—
      
—
      
—
      
—
      
427
      
—
      
427
  
        Substandard
    
—
      
—
      
13,934
      
—
      
498
      
2,005
      
300
      
16,737
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
18,120
    
$
7,911
    
$
24,613
    
$
5,973
    
$
6,623
    
$
18,357
    
$
759
    
$
82,356
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial real estate:
                                                
   Nonowner-occupied                                                
     Risk Rating
                                                
        Pass
  
$
12,688
    
$
29,344
    
$
32,235
    
$
20,484
    
$
15,415
    
$
61,809
    
$
1,128
    
$
173,103
  
     Special Mention
    
—
      
—
      
768
      
3,226
      
—
      
1,034
      
—
      
5,028
  
        Substandard
    
—
      
—
      
70
      
—
      
—
      
—
      
—
      
70
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
12,688
    
$
29,344
    
$
33,073
    
$
23,710
    
$
15,415
    
$
62,843
    
$
1,128
    
$
178,201
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
132
    
$
—
    
$
—
    
$
—
    
$
—
    
$
132
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial real estate:
                                                
   Construction                                                
     Risk Rating
                                                
        Pass
  
$
28,055
    
$
29,174
    
$
1,231
    
$
302
    
$
392
    
$
2,937
    
$
—
    
$
62,091
  
     Special Mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
        Substandard
    
—
      
—
      
—
      
—
      
—
      
246
      
—
      
246
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
28,055
    
$
29,174
    
$
1,231
    
$
302
    
$
392
    
$
3,183
    
$
—
    
$
62,337
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  

                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Commercial and Industrial:
                                                
     Risk Rating
                                                
        Pass
  
$
8,770
    
$
30,885
    
$
26,806
    
$
31,247
    
$
344
    
$
27,632
    
$
27,510
    
$
153,194
  
     Special Mention
    
140
      
—
      
—
      
—
      
—
      
8
      
66
      
214
  
        Substandard
    
—
      
—
      
58
      
1,363
      
4
      
182
      
2,283
      
3,890
  
        Doubtful
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
    Total
  
$
8,910
    
$
30,885
    
$
26,864
    
$
32,610
    
$
348
    
$
27,822
    
$
29,859
    
$
157,298
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
29
    
$
29
  

The Company considers the performance of the loan portfolio and its impact on the ACL. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of June 30, 2024 and  December 31, 2023:

                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
June 30, 2024
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Cost Basis
    
Total
  
                                                 
Residential Real Estate:
                                                
     Payment Performance
                                                
        Performing
  
$
29,529
    
$
55,390
    
$
42,614
    
$
48,602
    
$
42,063
    
$
105,911
    
$
32,363
    
$
356,472
  
        Nonperforming
    
—
      
123
      
1,131
      
517
      
—
      
1,105
      
—
      
2,876
  
    Total
  
$
29,529
    
$
55,513
    
$
43,745
    
$
49,119
    
$
42,063
    
$
107,016
    
$
32,363
    
$
359,348
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
10
    
$
—
    
$
—
    
$
27
    
$
—
    
$
37
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
June 30, 2024
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Cost Basis
    
Total
  
                                                 
Consumer:
                                                
   Automobile
                                                
     Payment Performance
                                                
        Performing
  
$
9,026
    
$
23,391
    
$
15,955
    
$
5,172
    
$
1,989
    
$
997
    
$
—
    
$
56,530
  
        Nonperforming
    
—
      
81
      
68
      
2
      
30
      
4
      
—
      
185
  
    Total
  
$
9,026
    
$
23,472
    
$
16,023
    
$
5,174
    
$
2,019
    
$
1,001
    
$
—
    
$
56,715
  
                                                                 
Current Period gross charge-offs
  
$
1
    
$
126
    
$
155
    
$
22
    
$
11
    
$
2
    
$
—
    
$
317
  
   
                             
Revolving
        
                             
Loans
        
 
Term Loans Amortized Cost Basis by Origination Year
  
Amortized
        
June 30, 2024
2024
  
2023
    
2022
    
2021
  
2020
  
Prior
  
Cost Basis
    
Total
  
                                                 
Consumer:
                                                
   Home Equity
                                                
     Payment Performance
                                                
        Performing
  
$
—
    
$
1,221
    
$
—
    
$
—
    
$
120
    
$
62
    
$
38,543
    
$
39,946
  
        Nonperforming
    
—
      
—
      
—
      
—
      
—
      
—
      
231
      
231
  
    Total
  
$
—
    
$
1,221
    
$
—
    
$
—
    
$
120
    
$
62
    
$
38,774
    
$
40,177
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
June 30, 2024
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Cost Basis
    
Total
  
                                                 
Consumer:
                                                
   Other
                                                
     Payment Performance
                                                
        Performing
  
$
7,961
    
$
22,583
    
$
11,123
    
$
8,573
    
$
3,289
    
$
1,394
    
$
13,738
    
$
68,661
  
        Nonperforming
    
—
      
473
      
69
      
60
      
75
      
3
      
35
      
715
  
    Total
  
$
7,961
    
$
23,056
    
$
11,192
    
$
8,633
    
$
3,364
    
$
1,397
    
$
13,773
    
$
69,376
  
                                                                 
Current Period gross charge-offs
  
$
209
    
$
63
    
$
90
    
$
73
    
$
42
    
$
2
    
$
207
    
$
686
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Residential Real Estate:
                                                
     Payment Performance
                                                
        Performing
  
$
50,484
    
$
44,640
    
$
50,949
    
$
44,818
    
$
21,854
    
$
91,956
    
$
13,560
    
$
318,261
  
        Nonperforming
    
—
      
—
      
—
      
—
      
182
      
1,061
      
—
      
1,243
  
    Total
  
$
50,484
    
$
44,640
    
$
50,949
    
$
44,818
    
$
22,036
    
$
93,017
    
$
13,560
    
$
319,504
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
3
    
$
—
    
$
—
    
$
118
    
$
—
    
$
121
  

                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Consumer:
                                                
   Automobile                                                
     Payment Performance
                                                
        Performing
  
$
28,939
    
$
20,376
    
$
7,013
    
$
3,028
    
$
1,212
    
$
759
    
$
—
    
$
61,327
  
        Nonperforming
    
34
      
60
      
15
      
1
      
9
      
15
      
—
      
134
  
    Total
  
$
28,973
    
$
20,436
    
$
7,028
    
$
3,029
    
$
1,221
    
$
774
    
$
—
    
$
61,461
  
                                                                 
Current Period gross charge-offs
  
$
51
    
$
163
    
$
116
    
$
6
    
$
29
    
$
3
    
$
—
    
$
368
  


 
                                      
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Consumer:
                                                
   Home Equity                                                
     Payment Performance
                                                
        Performing
  
$
1,649
    
$
79
    
$
—
    
$
—
    
$
—
    
$
—
    
$
34,070
    
$
35,798
  
        Nonperforming
    
—
      
—
      
—
      
—
      
—
      
—
      
95
      
95
  
    Total
  
$
1,649
    
$
79
    
$
—
    
$
—
    
$
—
    
$
—
    
$
34,165
    
$
35,893
  
                                                                 
Current Period gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
87
    
$
87
  


                                     
Revolving
        
                                       
Loans
        
   
Term Loans Amortized Cost Basis by Origination Year
    
Amortized
        
December 31, 2023
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Cost Basis
    
Total
  
                                                 
Consumer:
                                                
   Other                                                
     Payment Performance
                                                
        Performing
  
$
18,377
    
$
24,904
    
$
10,800
    
$
4,482
    
$
1,093
    
$
953
    
$
14,087
    
$
74,696
  
        Nonperforming
    
11
      
17
      
67
      
53
      
1
      
4
      
1
      
154
  
    Total
  
$
18,388
    
$
24,921
    
$
10,867
    
$
4,535
    
$
1,094
    
$
957
    
$
14,088
    
$
74,850
  
                                                                 
Current Period gross charge-offs
  
$
306
    
$
119
    
$
119
    
$
84
    
$
28
    
$
53
    
$
246
    
$
955
  

The Company originates residential, consumer, and commercial loans to customers located primarily in the southeastern areas of Ohio as well as the western counties of West Virginia.  Approximately 4.13% of total loans were unsecured at June 30, 2024, down from 4.37% at December 31, 2023.

Modifications to Borrowers Experiencing Financial Difficulty:
Occasionally, the Company modifies loans to borrowers experiencing financial difficulty.  These modifications may include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction in the contractual principal and interest payments of the loan; or short-term interest-only payment terms. All modifications to borrowers experiencing financial difficulty are considered to be impaired.

During the three and six months ended June 30, 2024, the Company experienced no new modifications to borrowers experiencing financial difficulty.

The following table presents the activity in the ACL by portfolio segment for the three months ended June 30, 2024 and 2023:

June 30, 2024
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for credit losses:
                              
Beginning balance
  
$
2,328
    
$
3,246
    
$
1,354
    
$
2,301
    
$
9,229
  
Provision for credit losses
    
(7
)
    
232
      
(428
)
    
341
      
138
  
Loans charged-off
    
-
      
—
      
—
      
(555
)
    
(555
)
Recoveries
    
29
      
13
      
467
      
110
      
619
  
Total ending allowance balance
  
$
2,350
    
$
3,491
    
$
1,393
    
$
2,197
    
$
9,431
  

June 30, 2023
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for credit losses:
                              
Beginning balance
  
$
2,031
    
$
2,306
    
$
1,177
    
$
2,093
    
$
7,607
  
Provision for credit losses
    
89
      
(69
)
    
(176
)
    
270
      
114
  
Loans charged-off
    
(24
)
    
—
      
—
      
(393
)
    
(417
)
Recoveries
    
11
      
15
      
114
      
127
      
267
  
Total ending allowance balance
  
$
2,107
    
$
2,252
    
$
1,115
    
$
2,097
    
$
7,571
  

The following table presents the activity in the ACL by portfolio segment for the six months ended June 30, 2024 and 2023:

June 30, 2024
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for credit losses:
                              
Beginning balance
  
$
2,213
    
$
3,047
    
$
1,275
    
$
2,232
    
$
8,767
  
Provision for credit losses
    
123
      
420
      
(244
)
    
696
      
995
  
Loans charged-off
    
(37
)
    
—
      
(109
)
    
(1,003
)
    
(1,149
)
Recoveries
    
51
      
24
      
471
      
272
      
818
  
Total ending allowance balance
  
$
2,350
    
$
3,491
    
$
1,393
    
$
2,197
    
$
9,431
  

June 30, 2023
  
Residential
Real Estate
    
Commercial
Real Estate
    
Commercial
and Industrial
    
Consumer
    
Total
  
Allowance for credit losses:
                              
Beginning balance
  
$
2,026
    
$
2,200
    
$
1,177
    
$
2,028
    
$
7,431
  
Provision for credit losses
    
128
      
156
      
(155
)
    
450
      
579
  
Loans charged-off
    
(71
)
    
(132
)
    
(29
)
    
(641
)
    
(873
)
Recoveries
    
24
      
28
      
122
      
260
      
434
  
Total ending allowance balance
  
$
2,107
    
$
2,252
    
$
1,115
    
$
2,097
    
$
7,571
  

The following table presents the amortized cost basis of collateral dependent loans by class of loans as of June 30, 2024 and December 31, 2023:

 
Collateral Type
  
 
June 30, 2024
  
Real Estate
    
Business Assets
    
Total
  
Residential real estate
  
$
1,441
    
$
—
    
$
1,441
  
Commercial real estate:
                        
Owner-occupied
    
710
      
153
      
863
  
Consumer:
                        
Home equity
    
27
      
—
      
27
  
Total collateral dependent loans
  
$
2,178
    
$
153
    
$
2,331
  


 
Collateral Type
  
 
December 31, 2023
  
Real Estate
    
Business Assets
    
Total
  
Residential real estate
  
$
1,663
    
$
—
    
$
1,663
  
Commercial real estate:
                        
Owner-occupied
    
700
      
258
      
958
  
Consumer:
                        
Home equity
    
27
      
—
      
27
  
Total collateral dependent loans
  
$
2,390
    
$
258
    
$
2,648
  

The recorded investment of a loan excludes accrued interest and net deferred origination fees and costs due to immateriality.

Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified as impaired loans.

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of June 30, 2024, the Company had $60 in other real estate owned for residential real estate properties compared to $68 at December 31, 2023. In addition, nonaccrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $136 and $348 as of June 30, 2024 and December 31, 2023, respectively.