Loans And Leases (Tables)

6 Months Ended

Jun. 30, 2023

Recorded Investment In Loans By Portfolio Segment




	June 30, 2023		December 31, 2022
	(unaudited)
Commercial ⁽¹⁾	$	439,854	$	427,423
Real estate:
Single-family residential		473,083		465,057
Multi-family residential		109,554		104,148
Commercial		392,846		375,092
Construction		194,208		184,122
Consumer:
Home equity lines of credit		36,576		30,748
Other		982		1,727
Subtotal		1,647,103		1,588,317
Less: ACL – Loans		(15,960)		(16,062)
Loans and leases, net	$	1,631,143	$	1,572,255

⁽¹⁾Includes $17,500 and $20,768 of commercial leases at June 30, 2023 and December 31, 2022, respectively.

Activity In ALLL By Portfolio Segment


	Three Months Ended June 30, 2023 (unaudited)
			Real Estate									Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home equity lines of credit		Other		Total
Allowance for credit losses
Balances, April 1, 2023	$	5,438	$	3,194	$	1,045	$	4,123	$	1,679	$	331	$	105	$	15,915
Provision of credit losses		(184)		(112)		(96)		(44)		422		(9)		(40)		(63)
Recoveries on loans		85		19		-		-		-		1		3		108
Loans charged off		-		-		-		-		-		-		-		-
Balances, June 30, 2023	$	5,339	$	3,101	$	949	$	4,079	$	2,101	$	323	$	68	$	15,960


	Six Months Ended June 30, 2023 (unaudited)
			Real Estate									Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home equity lines of credit		Other		Total
Allowance for credit losses
Balances, December 31, 2022	$	4,764	$	3,914	$	997	$	3,384	$	2,644	$	333	$	26	$	16,062
Impact of adoption ASC 326		877		(958)		66		726		(1,019)		(129)		28		(409)
Balances, January 1, 2023 Post-ASC 326 adoption		5,641		2,956		1,063		4,110		1,625		204		54		15,653
Provision of credit losses		(382)		123		(114)		(31)		476		118		14		204
Recoveries on loans		85		22		-		-		-		1		3		111
Loans charged off		(5)		-		-		-		-		-		(3)		(8)
Balances, June 30, 2023	$	5,339	$	3,101	$	949	$	4,079	$	2,101	$	323	$	68	$	15,960

Activity In ALLL Under Prior GAAP



	Three months ended June 30, 2022 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	4,427	$	3,506	$	787	$	4,634	$	1,744	$	276	$	146	$	15,520
Addition to (reduction in) provision for loan losses		300		200		-		(650)		150		-		-		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		-		9		-		-		-		3		-		12
Ending balance	$	4,727	$	3,715	$	787	$	3,984	$	1,894	$	279	$	146	$	15,532



	Six months ended June 30, 2022 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	4,127	$	3,348	$	827	$	5,034	$	1,744	$	272	$	156	$	15,508
Addition to (reduction in) provision for loan losses		600		350		(40)		(1,050)		150		-		(10)		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		-		17		-		-		-		7		-		24
Ending balance	$	4,727	$	3,715	$	787	$	3,984	$	1,894	$	279	$	146	$	15,532

Schedule Of Collateral-Dependent Loans By Loan Segment


	June 30, 2023 (unaudited)
	Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial	$	-	$	102	$	102	$	85
Real estate:
Single-family residential		93		-		93		-
Total	$	93	$	102	$	195	$	85

Balance In ALLL And Recorded Investment In Loans By Portfolio Segment And Based On Impairment Method



			Real Estate								Consumer
	Commercial		Single- ‎family		Multi- ‎family		Commercial		Construction		Home Equity ‎lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		4,764		3,914		997		3,384		2,644		333		26		16,062
Total ending allowance balance	$	4,764	$	3,914	$	997	$	3,384	$	2,644	$	333	$	26	$	16,062

Loans:
Individually evaluated for impairment	$	80	$	95	$	-	$	-	$	-	$	-	$	-	$	175
Collectively evaluated for impairment		427,343		464,962		104,148		375,092		184,122		30,748		1,727		1,588,142
Total ending loan balance	$	427,423	$	465,057	$	104,148	$	375,092	$	184,122	$	30,748	$	1,727	$	1,588,317

Individually Evaluated For Impairment By Class Of Loans


							Three months ended				Six months ended
	As of December 31, 2022						June 30, 2022				June 30, 2022
							(unaudited)				(unaudited)
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial:
Owner occupied	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total with no allowance recorded		-		-		-		-		-		-		-

With an allowance recorded:
Commercial ⁽¹⁾		371		80		-		123		-		144		1
Real estate:
Single-family residential ⁽¹⁾		95		95		-		98		1		98		3
Commercial:
Non-owner occupied		-		-		-		-		-		700		17
Total with an allowance recorded		466		175		-		221		1		942		21
Total	$	466	$	175	$	-	$	221	$	1	$	942	$	21

⁽¹⁾Allowance recorded in an amount less than $1 has been rounded down to zero.

Recorded Investment In Nonaccrual and Nonperforming Loans By Class Of Loans

The following table presents the recorded investment in non-accrual loans by class of loans at June 30, 2023 (unaudited):



	Non-Accrual Loans		Non-Accrual loans with no Allowance for Credit Losses
Commercial	$	164	$	62
Real estate:
Single-family residential		635		635
Total nonaccrual loans	$	799	$	697

The following table presents the recorded investment in nonperforming loans by class of loans at December 31, 2022:




	December 31, 2022

Loans past due over 90 days still on accrual	$	-
Nonaccrual loans:
Commercial		99
Real estate:
Single-family residential		641
Consumer:
Home equity lines of credit:
Originated for portfolio		18
Purchased for portfolio		3
Total nonaccrual		761
Total nonaccrual and nonperforming loans	$	761

Aging Of Recorded Investment In Past Due Loans By Class Of Loans

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of June 30, 2023 (unaudited):


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due
Commercial	$	247	$	777	$	62	$	1,086	$	438,768	$	102
Real estate:
Single-family residential		-		-		563		563		472,520		72
Multi-family residential		-		-		-		-		109,554		-
Commercial:
Non-owner occupied		-		-		-		-		184,985		-
Owner occupied		-		-		-		-		186,367		-
Land		-		-		-		-		21,494		-
Construction		-		-		-		-		194,208		-
Consumer:
Home equity lines of credit		-		-		-		-		36,576		-
Other		-		47		-		47		935		-
Total	$	247	$	824	$	625	$	1,696	$	1,645,407	$	174

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2022:



	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due
Commercial	$	255	$	-	$	99	$	354	$	427,069	$	-
Real estate:
Single-family residential		966		167		563		1,696		463,361		78
Multi-family residential		-		-		-		-		104,148		-
Commercial:
Non-owner occupied		-		-		-		-		169,686		-
Owner occupied		-		-		-		-		172,698		-
Land		-		-		-		-		32,708		-
Construction		-		-		-		-		184,122		-
Consumer:
Home equity lines of credit:
Originated for portfolio		29		-		18		47		30,701		-
Purchased for portfolio		-		-		-		-		-		-
Other		-		-		3		3		1,724		-
Total	$	1,250	$	167	$	683	$	2,100	$	1,586,217	$	78

Nonaccrual Loans As Troubled Debt Restructuring




	December 31, 2022

Commercial	$	80
Total	$	80

Recorded Investment In Loans By Risk Category And Class Of Loans

‎

The following table summarizes the risk grading of the Company’s loan portfolio by loan class and by year of origination for the years indicated as of June 30, 2023. Consumer and Single-family residential loans are not risk graded. For purposes of this disclosure, those loans are classified in the following manner: loans that are 89 days or less past due and accruing are “performing” loans and loans greater than 89 days past due or in nonaccrual are “nonperforming” loans.


	Term Loans (amortized cost basis by origination year)
(unaudited)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and Industrial
Pass	$	26,793	$	97,823	$	101,796	$	47,962	$	4,920	$	13,259	$	142,096	$	475	$	435,124
Substandard		-		-		4,628		-		102		-		-		-		4,730
Total Commercial and industrial loans		26,793		97,823		106,424		47,962		5,022		13,259		142,096		475		439,854
Current period gross charge-offs		-		-		5		-		-		-		-		-		5
Real estate loans:
Single-family residential
Payment performance
Performing		25,165		135,009		237,472		47,065		9,962		17,775						472,448
Nonperforming		-		-		-		-		-		635		-		-		635
Total Single-family residential loans		25,165		135,009		237,472		47,065		9,962		18,410		-		-		473,083
Multi-family residential
Pass		4,800		8,827		51,631		7,367		15,888		21,041		-		-		109,554
Total Multi-family residential loans		4,800		8,827		51,631		7,367		15,888		21,041		-		-		109,554
Commercial:
Non-owner occupied
Pass		16,669		27,115		49,138		15,525		20,450		54,481		1,097		-		184,475
Special Mention		-		-		-		-		510		-		-		-		510
Total Non-owner occupied loans		16,669		27,115		49,138		15,525		20,960		54,481		1,097		-		184,985
Owner occupied
Pass		14,723		55,959		56,348		20,226		19,167		19,188		70		-		185,681
Special Mention		-		-		-		-		686		-		-		-		686
Total Owner occupied loans		14,723		55,959		56,348		20,226		19,853		19,188		70		-		186,367
Land
Pass		1,781		5,980		11,243		1,927		154		409		-		-		21,494
Total Land loans		1,781		5,980		11,243		1,927		154		409		-		-		21,494
Construction
Pass		6,941		62,829		102,120		9,771		-		212		12,335		-		194,208
Total Construction loans		6,941		62,829		102,120		9,771		-		212		12,335		-		194,208
Consumer:
Home equity lines of credit:
Payment performance
Performing		-		-		-		-		-		-		36,049		527		36,576
Nonperforming		-		-		-		-		-		-		-		-		-
Total Home equity lines of credit		-		-		-		-		-		-		36,049		527		36,576
Other
Payment performance																		-
Performing		-		-		-		14		-		289		632		47		982
Nonperforming		-		-		-		-		-		-		-		-		-
Total Other consumer loans		-		-		-		14		-		289		632		47		982
Current period gross charge-offs		-		-		-		-		-		3		-		-		3
Total loans	$	96,872	$	393,542	$	614,376	$	149,857	$	71,839	$	127,289	$	192,279	$	1,049	$	1,647,103
Total current period gross charge-offs	$	-	$	-	$	5	$	-	$	-	$	3	$	-	$	-	$	8

The recorded investment in loans and leases by risk category and by class of loans and leases as of December 31, 2022 follows.



	Not Rated		Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	-	$	422,673	$	4,651	$	19	$	80	$	427,423
Real estate:
Single-family residential		451,939		12,477		-		641		-		465,057
Multi-family residential		-		104,148		-		-		-		104,148
Commercial:
Non-owner occupied		-		168,731		955		-		-		169,686
Owner occupied		-		171,998		700		-		-		172,698
Land		-		32,708		-		-		-		32,708
Construction		3,084		180,520		518		-		-		184,122
Consumer:
Home equity lines of credit:
Originated for portfolio		30,730		-		-		18		-		30,748
Purchased for portfolio		-		-		-		-		-		-
Other		1,724		-		-		3		-		1,727
	$	487,477	$	1,093,255	$	6,824	$	681	$	80	$	1,588,317

Components Of Net Investment In Direct Financing Leases


	June 30, 2023		December 31, 2022
	(unaudited)
Total minimum lease payments to be received	$	18,796	$	22,533
Less: Unearned income		(1,320)		(1,798)
Plus: Indirect initial costs		24		33
Net investment in direct financing leases	$	17,500	$	20,768

Summary Of Future Minimum Lease Payments Receivable


2023, excluding the six months ended June 30, 2023	$	3,425
2024		6,227
2025		5,537
2026		2,956
2027		601
Thereafter		50
Total future minimum payments	$	18,796