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Note 3 - Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2023

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3.	LOANS AND ALLOWANCE FOR CREDIT LOSSES

Our total loans at March 31, 2023 were $3.97 billion compared to $3.92 billion at December 31, 2022, an increase of $48.9 million, or 1.2%. The components of our loan portfolio disaggregated by class of loan within the loan portfolio segments at March 31, 2023 and December 31, 2022, and the percentage change in loans from the end of 2022 to the end of the first quarter of 2023, are as follows:

											Percent
	March 31, 2023					December 31, 2022					Increase
	Balance		%			Balance		%			(Decrease)

Commercial:
Commercial and industrial (1)	$	1,173,440,000		29.6	%	$	1,185,083,000		30.3	%		(1.0	%)
Vacant land, land development, and residential construction		66,233,000		1.7			61,873,000		1.6			7.0
Real estate – owner occupied		630,187,000		15.9			639,192,000		16.3			(1.4	)
Real estate – non-owner occupied		1,051,221,000		26.5			1,033,734,000		26.4			1.7
Real estate – multi-family and residential rental		219,339,000		5.5			211,948,000		5.4			3.5
Total commercial		3,140,420,000		79.2			3,131,830,000		80.0			0.3

Retail:
1-4 family mortgages		795,007,000		20.0			755,036,000		19.3			5.3
Other consumer loans		30,101,000		0.8			29,753,000		0.7			1.2
Total retail		825,108,000		20.8			784,789,000		20.0			5.1

Total loans	$	3,965,528,000		100.0	%	$	3,916,619,000		100.0	%		1.2	%

(1)

For March 31, 2023, and December 31, 2022, includes $0.4 million and $0.9 million in loans originated under the Paycheck Protection Program, respectively.

Nonperforming loans as of March 31, 2023 and December 31, 2022 were as follows:

	March 31,		December 31,
	2023		2022

Loans past due 90 days or more still accruing interest	$	0	$	0
Nonaccrual loans		7,782,000		7,728,000

Total nonperforming loans	$	7,782,000	$	7,728,000

The recorded principal balance of nonperforming loans was as follows:

	March 31,		December 31,
	2023		2022
Commercial:
Commercial and industrial	$	5,654,000	$	6,024,000
Vacant land, land development, and residential construction		0		0
Real estate – owner occupied		229,000		248,000
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		5,883,000		6,272,000

Retail:
1-4 family mortgages		1,899,000		1,456,000
Other consumer loans		0		0
Total retail		1,899,000		1,456,000

Total nonperforming loans	$	7,782,000	$	7,728,000

An age analysis of past due loans is as follows as of March 31, 2023:

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Recorded Balance > 89 Days and Accruing

Commercial:
Commercial and industrial	$	95,000	$	0	$	272,000	$	367,000	$	1,173,073,000	$	1,173,440,000	$	0
Vacant land, land development, and residential construction		0		0		0		0		66,233,000		66,233,000		0
Real estate – owner occupied		206,000		44,000		229,000		479,000		629,708,000		630,187,000		0
Real estate – non-owner occupied		0		0		0		0		1,051,221,000		1,051,221,000		0
Real estate – multi-family and residential rental		27,000		0		0		27,000		219,312,000		219,339,000		0
Total commercial		328,000		44,000		501,000		873,000		3,139,547,000		3,140,420,000		0

Retail:
1-4 family mortgages		733,000		235,000		277,000		1,245,000		793,762,000		795,007,000		0
Other consumer loans		41,000		3,000		0		44,000		30,057,000		30,101,000		0
Total retail		774,000		238,000		277,000		1,289,000		823,819,000		825,108,000		0

Total past due loans	$	1,102,000	$	282,000	$	778,000	$	2,162,000	$	3,963,366,000	$	3,965,528,000	$	0

An age analysis of past due loans is as follows as of December 31, 2022:

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Recorded Balance > 89 Days and Accruing

Commercial:
Commercial and industrial	$	0	$	5,705,000	$	249,000	$	5,954,000	$	1,179,129,000	$	1,185,083,000	$	0
Vacant land, land development, and residential construction		0		0		0		0		61,873,000		61,873,000		0
Real estate – owner occupied		0		248,000		0		248,000		638,944,000		639,192,000		0
Real estate – non-owner occupied		0		0		0		0		1,033,734,000		1,033,734,000		0
Real estate – multi-family and residential rental		0		0		0		0		211,948,000		211,948,000		0
Total commercial		0		5,953,000		249,000		6,202,000		3,125,628,000		3,131,830,000		0

Retail:
1-4 family mortgages		1,334,000		88,000		116,000		1,538,000		753,498,000		755,036,000		0
Other consumer loans		15,000		1,000		0		16,000		29,737,000		29,753,000		0
Total retail		1,349,000		89,000		116,000		1,554,000		783,235,000		784,789,000		0

Total past due loans	$	1,349,000	$	6,042,000	$	365,000	$	7,756,000	$	3,908,863,000	$	3,916,619,000	$	0

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Identified problem loans, which exhibit characteristics (financial or otherwise) that could cause the loans to become nonperforming or require restructuring in the future, are included on an internal watch list. Senior management and the Board of Directors review this list regularly. Fair value estimates of collateral on distressed lending relationships, as well as on foreclosed and repossessed assets, are reviewed periodically. We also have a process in place to monitor whether value estimates at each quarter-end are reflective of current market conditions. Our credit policies establish criteria for obtaining appraisals and determining internal value estimates. We may also adjust outside and internal valuations based on identifiable trends within our markets, such as recent sales of similar properties or assets, listing prices and offers received. In addition, we may discount certain appraised and internal value estimates to address distressed market conditions. Under CECL for collateral dependent loans in instances where the borrower is experiencing financial difficulties, we adopted the practical expedient to measure the allowance based on the fair value of collateral. The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral and the recorded principal balance. If the fair value of the collateral exceeds the recorded principal balance, no allowance is required. Collateral dependent loans, representing the entire amount of loans on nonaccrual, totaled $7.8 million and $7.7 million as of March 31, 2023 and December 31, 2022, respectively.

Nonaccrual loans as of March 31, 2023 were as follows:

	Amortized		Related
	Cost		Allowance
With no allowance recorded:
Commercial:
Commercial and industrial	$	1,986,000	$	0
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		229,000		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		2,215,000		0

Retail:
1-4 family mortgages		1,096,000		0
Other consumer loans		0		0
Total retail		1,096,000		0

Total with no allowance recorded	$	3,311,000	$	0

With an allowance recorded:
Commercial:
Commercial and industrial	$	3,668,000	$	2,060,000
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		3,668,000		2,060,000

Retail:
1-4 family mortgages		803,000		378,000
Other consumer loans		0		0
Total retail		803,000		378,000

Total with an allowance recorded	$	4,471,000	$	2,438,000

Total nonaccrual loans:
Commercial	$	5,883,000	$	2,060,000
Retail		1,899,000		378,000
Total nonaccrual loans	$	7,782,000	$	2,438,000

No interest income was recognized on nonaccrual loans during the first quarter of 2023.

Nonaccrual loans as of December 31, 2022 were as follows:

	Amortized		Related
	Cost		Allowance
With no allowance recorded:
Commercial:
Commercial and industrial	$	249,000	$	0
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		249,000		0

Retail:
1-4 family mortgages		1,064,000		0
Other consumer loans		0		0
Total retail		1,064,000		0

Total with no allowance recorded	$	1,313,000	$	0

With an allowance recorded:
Commercial:
Commercial and industrial	$	5,775,000	$	2,051,000
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		248,000		32,000
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		6,023,000		2,083,000

Retail:
1-4 family mortgages		392,000		200,000
Other consumer loans		0		0
Total retail		392,000		200,000

Total with an allowance recorded	$	6,415,000	$	2,283,000

Total nonaccrual loans:
Commercial	$	6,272,000	$	2,083,000
Retail		1,456,000		200,000
Total nonaccrual loans	$	7,728,000	$	2,283,000

No interest income was recognized on nonaccrual loans during 2022.

Credit Quality Indicators. We utilize a comprehensive grading system for our commercial loans. All commercial loans are graded on a ten grade rating system. The rating system utilizes standardized grade paradigms that analyze several critical factors such as cash flow, operating performance, financial condition, collateral, industry condition and management. All commercial loans are graded at inception and reviewed and, if appropriate, re-graded at various intervals thereafter. The primary risk elements with respect to commercial loans are the financial condition of the borrower, the sufficiency of collateral, and timeliness of scheduled payments. We have a policy of requesting and reviewing periodic financial statements from commercial loan customers and employ a disciplined and formalized review of the existence of collateral and its value. All commercial loans are graded using the following criteria:

	Grade 1.	“Exceptional” Loans with this rating contain very little, if any, risk.

	Grade 2.	“Outstanding” Loans with this rating have excellent and stable sources of repayment and conform to bank policy and regulatory requirements.

	Grade 3.	“Very Good” Loans with this rating have strong sources of repayment and conform to bank policy and regulatory requirements. These are loans for which repayment risks are acceptable.

	Grade 4.	“Good” Loans with this rating have solid sources of repayment and conform to bank policy and regulatory requirements. These are loans for which repayment risks are modest.

	Grade 5.	“Acceptable” Loans with this rating exhibit acceptable sources of repayment and conform with most bank policies and all regulatory requirements. These are for loans for which repayment risks are satisfactory.

	Grade 6.	“Monitor” Loans with this rating are considered to have emerging weaknesses which may include negative current cash flow, high leverage, or operating losses. Generally, if further deterioration is observed, these credits will be downgraded to the criticized asset report.

	Grade 7.	“Special Mention” Loans with this rating have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date.

	Grade 8.	“Substandard” Loans with this rate are inadequately protected by current sound net worth, paying capacity of the obligor, or of the pledged collateral, if any. A Substandard loan normally has one or more well-defined weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility of loss if the deficiencies are not corrected.

	Grade 9.	“Doubtful” Loans with this rating exhibit all the weaknesses inherent in the Substandard classification and where collection or liquidation in full is highly questionable and improbable.

	Grade 10.	“Loss” Loans with this rating are considered uncollectible, and of such little value that continuance as an active asset is not warranted.

The primary risk element with respect to each residential real estate loan and consumer loan is the timeliness of scheduled payments. We have a reporting system that monitors past due loans and have adopted policies to pursue creditors’ rights in order to preserve our collateral position. Retail loans that reach 90 days or more past due are generally placed into nonaccrual status and are categorized as nonperforming.

The following table reflects amortized cost basis of loans and year-to-date loan charge-offs as of March 31, 2023 based on year of origination (dollars in thousands):

	2023		2022		2021		2020		2019		Prior		Term Total		Revolving Loans		Grand Total
Commercial:
Commercial and Industrial:
Grades 1 – 4	$	38,167	$	101,497	$	129,476	$	38,182	$	8,393	$	11,100	$	326,815	$	396,886	$	723,701
Grades 5 – 7		25,597		128,333		42,304		26,770		8,472		512		231,988		194,070		426,058
Grades 8 – 9		9,947		24		249		0		0		43		10,263		13,418		23,681
Total	$	73,711	$	229,854	$	172,029	$	64,952	$	16,865	$	11,655	$	569,066	$	604,374	$	1,173,440
Current year-to-date gross write offs	$	0	$	36	$	0	$	0	$	0	$	0	$	36	$	0	$	36

Vacant Land, Land Development and Residential Construction:
Grades 1 – 4	$	2,916	$	28,645	$	5,225	$	3,121	$	0	$	321	$	40,228	$	0	$	40,228
Grades 5 – 7		5,310		11,643		7,602		341		48		586		25,530		374		25,904
Grades 8 – 9		0		0		0		0		0		101		101		0		101
Total	$	8,226	$	40,288	$	12,827	$	3,462	$	48	$	1,008	$	65,859	$	374	$	66,233
Current year-to-date gross write offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Real Estate – Owner Occupied:
Grades 1 – 4	$	39,686	$	167,851	$	110,400	$	51,319	$	18,545	$	22,312	$	410,113	$	0	$	410,113
Grades 5 – 7		15,364		97,215		42,009		32,707		9,976		12,171		209,442		0		209,442
Grades 8 – 9		7,500		2,966		0		44		0		122		10,632		0		10,632
Total	$	62,550	$	268,032	$	152,409	$	84,070	$	28,521	$	34,605	$	630,187	$	0	$	630,187
Current year-to-date gross write offs	$	0	$	14	$	0	$	0	$	0	$	0	$	14	$	0	$	14

Real Estate – Non-Owner Occupied:
Grades 1 – 4	$	11,142	$	114,392	$	162,687	$	92,232	$	47,592	$	21,345	$	449,390	$	0	$	449,390
Grades 5 – 7		65,990		174,725		156,779		112,205		31,078		48,780		589,557		0		589,557
Grades 8 – 9		0		6,644		5,630		0		0		0		12,274		0		12,274
Total	$	77,132	$	295,761	$	325,096	$	204,437	$	78,670	$	70,125	$	1,051,221	$	0	$	1,051,221
Current year-to-date gross write offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Real Estate – Multi-Family and Residential Rental:
Grades 1 – 4	$	9,717	$	31,937	$	39,603	$	35,737	$	5,213	$	6,386	$	128,593	$	0	$	128,593
Grades 5 – 7		5,470		32,355		23,634		12,323		3,041		2,602		79,425		0		79,425
Grades 8 – 9		0		11,250		0		0		0		71		11,321		0		11,321
Total	$	15,187	$	75,542	$	63,237	$	48,060	$	8,254	$	9,059	$	219,339	$	0	$	219,339
Current year-to-date gross write offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Total Commercial	$	236,806	$	909,477	$	725,598	$	404,981	$	132,358	$	126,452	$	2,535,672	$	604,748	$	3,140,420
Total Comm current YTD gross write offs	$	0	$	50	$	0	$	0	$	0	$	0	$	50	$	0	$	50

	2023		2022		2021		2020		2019		Prior		Term Total		Revolving Loans		Grand Total
Retail:
1-4 Family Mortgages:
Performing	$	35,010	$	325,078	$	240,820	$	90,565	$	11,799	$	52,831	$	756,103	$	37,005	$	793,108
Nonperforming		0		138		385		0		13		1,363		1,899		0		1,899
Total	$	35,010	$	325,216	$	241,205	$	90,565	$	11,812	$	54,194	$	758,002	$	37,005	$	795,007
Current year-to-date gross write offs	$	0	$	0	$	0	$	0	$	0	$	42	$	42	$	0	$	42

Other Consumer Loans:
Performing	$	1,808	$	3,771	$	2,409	$	844	$	940	$	605	$	10,377	$	19,724	$	30,101
Nonperforming		0		0		0		0		0		0		0		0		0
Total	$	1,808	$	3,771	$	2,409	$	844	$	940	$	605	$	10,377	$	19,724	$	30,101
Current year-to-date gross write offs	$	0	$	3	$	0	$	0	$	0	$	1	$	4	$	10	$	14

Total Retail	$	36,818	$	328,987	$	243,614	$	91,409	$	12,752	$	54,799	$	768,379	$	56,729	$	825,108
Total Retail Current YTD gross write offs	$	0	$	3	$	0	$	0	$	0	$	43	$	46	$	10	$	56

Grand Total	$	273,624	$	1,238,464	$	969,212	$	496,390	$	145,110	$	181,251	$	3,304,051	$	661,477	$	3,965,528
Grand Total Current YTD gross write offs	$	0	$	53	$	0	$	0	$	0	$	43	$	96	$	10	$	106

There were no revolving loans converted to term loans during the first three months of 2023.

The following table reflects amortized cost of basis of loans as of December 31, 2022 based on year of origination (dollars in thousands):

	2022		2021		2020		2019		2018		Prior		Term Total		Revolving Loans		Grand Total
Commercial:
Commercial and Industrial:
Grades 1 – 4	$	115,494	$	141,481	$	43,961	$	9,194	$	3,230	$	9,851	$	323,211	$	396,372	$	719,583
Grades 5 – 7		151,783		47,030		31,697		8,870		569		93		240,042		210,363		450,405
Grades 8 – 9		3,784		249		0		0		48		29		4,110		10,985		15,095
Total	$	271,061	$	188,760	$	75,658	$	18,064	$	3,847	$	9,973	$	567,363	$	617,720	$	1,185,083

Vacant Land, Land Development and Residential Construction:
Grades 1 – 4	$	31,756	$	6,196	$	3,428	$	0	$	0	$	331	$	41,711	$	0	$	41,711
Grades 5 – 7		10,270		8,760		351		50		0		626		20,057		0		20,057
Grades 8 – 9		0		0		0		0		14		91		105		0		105
Total	$	42,026	$	14,956	$	3,779	$	50	$	14	$	1,048	$	61,873	$	0	$	61,873

Real Estate – Owner Occupied:
Grades 1 – 4	$	194,072	$	113,528	$	53,630	$	19,670	$	19,279	$	6,162	$	406,341	$	0	$	406,341
Grades 5 – 7		115,720		56,173		33,913		10,245		12,550		1,165		229,766		0		229,766
Grades 8 – 9		2,919		0		44		0		122		0		3,085		0		3,085
Total	$	312,711	$	169,701	$	87,587	$	29,915	$	31,951	$	7,327	$	639,192	$	0	$	639,192

Real Estate – Non-Owner Occupied:
Grades 1 – 4	$	129,153	$	163,035	$	89,125	$	44,196	$	10,079	$	12,018	$	447,606	$	0	$	447,606
Grades 5 – 7		183,388		164,334		139,951		35,200		13,456		37,399		573,728		0		573,728
Grades 8 – 9		6,712		5,688		0		0		0		0		12,400		0		12,400
Total	$	319,253	$	333,057	$	229,076	$	79,396	$	23,535	$	49,417	$	1,033,734	$	0	$	1,033,734

Real Estate – Multi-Family and Residential Rental:
Grades 1 – 4	$	31,470	$	38,176	$	36,348	$	5,306	$	3,082	$	4,003	$	118,385	$	0	$	118,385
Grades 5 – 7		48,847		25,786		12,879		3,162		2,557		283		93,514		0		93,514
Grades 8 – 9		0		0		0		0		0		49		49		0		49
Total	$	80,317	$	63,962	$	49,227	$	8,468	$	5,639	$	4,335	$	211,948	$	0	$	211,948
Total Commercial	$	1,025,368	$	770,436	$	445,327	$	135,893	$	64,986	$	72,100	$	2,514,110	$	617,720	$	3,131,830

	2022		2021		2020		2019		2018		Prior		Term Total		Revolving Loans		Grand Total

Retail:
1-4 Family Mortgages:
Performing	$	313,611	$	242,950	$	91,936	$	12,094	$	14,297	$	41,622	$	716,510	$	37,070	$	753,580
Nonperforming		142		82		0		0		203		1,029		1,456		0		1,456
Total	$	313,753	$	243,032	$	91,936	$	12,094	$	14,500	$	42,651	$	717,966	$	37,070	$	755,036

Other Consumer Loans:
Performing	$	4,349	$	2,870	$	1,040	$	1,074	$	395	$	430	$	10,158	$	19,595	$	29,753
Nonperforming		0		0		0		0		0		0		0		0		0
Total	$	4,349	$	2,870	$	1,040	$	1,074	$	395	$	430	$	10,158	$	19,595	$	29,753
Total Retail	$	318,102	$	245,902	$	92,976	$	13,168	$	14,895	$	43,081	$	728,124	$	56,665	$	784,789

Grand Total	$	1,343,470	$	1,016,338	$	538,303	$	149,061	$	79,881	$	115,181	$	3,242,234	$	674,385	$	3,916,619

There were no revolving loans converted to term loans during 2022.

Activity in the allowance for credit losses during the three months ended March 31, 2023 is as follows (dollars in thousands):

	Commercial and industrial			Commercial vacant land, land development and residential construction		Commercial real estate – owner occupied			Commercial real estate – non-owner occupied		Commercial real estate – multi-family and residential rental		1-4 family mortgages			Other consumer loans			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	10,203		$	490	$	5,914		$	10,164	$	1,269	$	14,027		$	160		$	19	$	42,246
Provision for credit losses		(7	)		19		(237	)		131		24		618			(5	)		57		600
Charge-offs		(36	)		0		(14	)		0		0		(42	)		(14	)		0		(106	)
Recoveries		21			1		48			0		7		45			15			0		137
Ending balance	$	10,181		$	510	$	5,711		$	10,295	$	1,300	$	14,648		$	156		$	76	$	42,877

Activity in the allowance for credit losses during the three months ended March 31, 2022 is as follows (dollars in thousands):

	Commercial and industrial			Commercial vacant land, land development and residential construction			Commercial real estate – owner occupied			Commercial real estate – non-owner occupied			Commercial real estate – multi-family and residential rental			1-4 family mortgages			Other consumer loans			Unallocated			Total
Allowance for credit losses:
Beginning balance	$	10,782		$	420		$	6,045		$	13,301		$	1,695		$	2,449		$	626		$	45		$	35,363
Adoption of ASU 2016-13		(1,571	)		(43	)		(560	)		(2,534	)		(621	)		5,395			(411	)		(55	)		(400	)
Provision for credit losses		(742	)		106			286			(445	)		194			593			(33	)		141			100
Charge-offs		(170	)		(29	)		0			0			0			(2	)		(4	)		0			(205	)
Recoveries		114			1			32			0			8			127			13			0			295
Ending balance	$	8,413		$	455		$	5,803		$	10,322		$	1,276		$	8,562		$	191		$	131		$	35,153

There were no loans modified to borrowers experiencing financial difficulty during the first three months of 2023.

Loans modified as troubled debt restructurings during the three months ended March 31, 2022 were as follows:

			Pre-		Post-
			Modification		Modification
			Recorded		Recorded
	Number of		Principal		Principal
	Contracts		Balance		Balance

Commercial:
Commercial and industrial		0	$	0	$	0
Vacant land, land development and residential construction		0		0		0
Real estate – owner occupied		0		0		0
Real estate – non-owner occupied		0		0		0
Real estate – multi-family and residential rental		0		0		0
Total commercial		0		0		0

Retail:
1-4 family mortgages		2		128,000		128,000
Other consumer loans		0		0		0
Total retail		2		128,000		128,000

Total loans		2	$	128,000	$	128,000

The following loans, modified as troubled debt restructurings within the previous twelve months, became over 30 days past due within the three months ended March 31, 2022 (amounts as of period end):

			Recorded
	Number of		Principal
	Contracts		Balance
Commercial:
Commercial and industrial		0	$	0
Vacant land, land development and residential construction		0		0
Real estate – owner occupied		0		0
Real estate – non-owner occupied		0		0
Real estate – multi-family and residential rental		0		0
Total commercial		0		0

Retail:
1-4 family mortgages		0		0
Other consumer loans		0		0
Total retail		0		0

Total loans		0	$	0

Activity for loans categorized as troubled debt restructurings during the three months ended March 31, 2022 is as follows:

	Commercial and Industrial			Commercial Vacant Land, Land Development, and Residential Construction		Commercial Real Estate - Owner Occupied			Commercial Real Estate - Non-Owner Occupied			Commercial Real Estate - Multi-Family and Residential Rental

Commercial Loan Portfolio:
Beginning Balance	$	4,973,000		$	0	$	10,435,000		$	146,000		$	91,000
Charge-Offs		0			0		0			0			0
Payments		(212,000	)		0		(9,677,000	)		(3,000	)		(1,000	)
Transfers to ORE		0			0		0			0			0
Net Additions/Deletions		(1,932,000	)		0		(669,000	)		0			0
Ending Balance	$	2,829,000		$	0	$	89,000		$	143,000		$	90,000

	Retail			Retail
	1-4 Family			Other Consumer
	Mortgages			Loans
Retail Loan Portfolio:
Beginning Balance	$	627,000		$	1,202,000
Charge-Offs		0			0
Payments		(78,000	)		(2,000	)
Transfers to ORE		0			0
Net Additions/Deletions (1)		1,797,000			(1,187,000	)
Ending Balance	$	2,346,000		$	13,000

(1)

Includes $1.2 million in the transfer of home equity lines of credit from other consumer loans to 1-4 family mortgages in association with the adoption of the CECL methodology effective January 1, 2022.