Loans And Leases (Tables)

9 Months Ended

Sep. 30, 2023

Recorded Investment In Loans By Portfolio Segment




	September 30, 2023		December 31, 2022
	(unaudited)
Commercial ⁽¹⁾	$	427,992	$	427,423
Real estate:
Single-family residential		477,031		465,057
Multi-family residential		124,802		104,148
Commercial		392,516		375,092
Construction		217,281		184,122
Consumer:
Home equity lines of credit		35,583		30,748
Other		1,601		1,727
Subtotal		1,676,806		1,588,317
Less: ACL – Loans		(17,032)		(16,062)
Loans and leases, net	$	1,659,774	$	1,572,255

⁽¹⁾Includes $15,315 and $20,768 of commercial leases at September 30, 2023 and December 31, 2022, respectively.

Activity In ALLL By Portfolio Segment


	Three Months Ended September 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, July 1, 2023	$	5,339	$	3,101	$	949	$	4,079	$	2,101	$	323	$	68	$	15,960
Provision of credit losses		1,294		24		136		(251)		(55)		(10)		60		1,198
Recoveries on loans		-		9		-		-		-		2		-		11
Loans charged off		(137)		-		-		-		-		-		-		(137)
Balances, September 30, 2023	$	6,496	$	3,134	$	1,085	$	3,828	$	2,046	$	315	$	128	$	17,032


	Nine Months Ended September 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 of 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		912		147		22		(282)		421		108		74		1,402
Recoveries on loans		85		31		-		-		-		3		3		122
Loans charged off		(142)		-		-		-		-		-		(3)		(145)
Balances, September 30, 2023	$	6,496	$	3,134	$	1,085	$	3,828	$	2,046	$	315	$	128	$	17,032

Activity In ALLL Under Prior GAAP



	Three months ended September 30, 2022 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	4,727	$	3,715	$	787	$	3,984	$	1,894	$	279	$	146	$	15,532
Addition to (reduction in) provision for loan losses		-		-		185		-		-		-		(35)		150
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		-		2		-		-		-		3		-		5
Ending balance	$	4,727	$	3,717	$	972	$	3,984	$	1,894	$	282	$	111	$	15,687



	Nine months ended September 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		145		(1,050)		150		-		(45)		150
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		-		19		-		-		-		10		-		29
Ending balance	$	4,727	$	3,717	$	972	$	3,984	$	1,894	$	282	$	111	$	15,687

Schedule Of Collateral-Dependent Loans By Loan Segment


	September 30, 2023 (unaudited)
	Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial	$	-	$	611	$	611	$	611
Real estate:
Single-family residential		92		-		92		-
Total	$	92	$	611	$	703	$	611

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	$	-	⁽¹⁾	$	-	⁽¹⁾	$	-	$	-	$	-	$	-	$	-	$	-
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

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

Individually Evaluated For Impairment By Class Of Loans


							Three months ended				Nine months ended
	As of December 31, 2022						September 30, 2022				September 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		-		112		-		134		1
Real estate:
Single-family residential ⁽¹⁾		95		95		-		97		1		98		4
Commercial:
Non-owner occupied		-		-		-		-		-		466		17
Total with an allowance recorded		466		175		-		209		1		698		22
Total	$	466	$	175	$	-	$	209	$	1	$	698	$	22

⁽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 September 30, 2023 (unaudited):



	Non-Accrual Loans		Non-Accrual loans with no Allowance for Credit Losses
Commercial	$	3,933	$	374
Real estate:
Single-family residential		631		631
Consumer:
Other consumer		30		30
Total nonaccrual loans	$	4,594	$	1,035

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




	December 31, 2022

Loans past due 90 or more 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 September 30, 2023 (unaudited):


	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or more Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans < 90 days Past Due
Commercial	$	419	$	1,109	$	284	$	1,812	$	426,180	$	3,649
Real estate:
Single-family residential		-		-		563		563		476,468		68
Multi-family residential		-		-		-		-		124,802		-
Commercial:
Non-owner occupied		-		-		-		-		188,819		-
Owner occupied		-		-		-		-		182,486		-
Land		-		-		-		-		21,211		-
Construction		-		-		-		-		217,281		-
Consumer:
Home equity lines of credit:		14		-		-		14		35,569		-
Other		-		-		30		30		1,571		-
Total	$	433	$	1,109	$	877	$	2,419	$	1,674,387	$	3,717

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		90 Days or more Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans < 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

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 September 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	$	23,387	$	87,837	$	96,210	$	46,519	$	3,579	$	13,070	$	146,564	$	500	$	417,666
Special Mention				1,488														1,488
Substandard		-		1,012		7,736		-		90		-		-		-		8,838
Total Commercial and industrial loans		23,387		90,337		103,946		46,519		3,669		13,070		146,564		500		427,992
Current period gross charge-offs		-		-		142		-		-		-		-		-		142
Real estate loans:
Single-family residential
Payment performance
Performing		35,743		133,221		234,245		46,331		9,740		17,120						476,400
Nonperforming		-		-		-		-		-		631		-		-		631
Total Single-family residential loans		35,743		133,221		234,245		46,331		9,740		17,751		-		-		477,031
Multi-family residential
Pass		21,105		8,802		51,294		7,339		15,831		20,431		-		-		124,802
Total Multi-family residential loans		21,105		8,802		51,294		7,339		15,831		20,431		-		-		124,802
Commercial:
Non-owner occupied
Pass		27,512		27,303		48,354		15,308		20,277		48,466		1,092		-		188,312
Special Mention		-		-		-		-		507		-		-		-		507
Total Non-owner occupied loans		27,512		27,303		48,354		15,308		20,784		48,466		1,092		-		188,819
Owner occupied
Pass		17,495		55,577		50,712		20,013		18,962		18,979		69		-		181,807
Special Mention		-		-		-		-		679		-		-		-		679
Total Owner occupied loans		17,495		55,577		50,712		20,013		19,641		18,979		69		-		182,486
Land
Pass		7,724		6,510		6,416		-		152		409		-		-		21,211
Total Land loans		7,724		6,510		6,416		-		152		409		-		-		21,211
Construction
Pass		19,896		70,592		100,104		9,662		-		213		16,814		-		217,281
Total Construction loans		19,896		70,592		100,104		9,662		-		213		16,814		-		217,281
Consumer:
Home equity lines of credit:
Payment performance
Performing		-		-		-		-		-		-		33,103		2,480		35,583
Total Home equity lines of credit		-		-		-		-		-		-		33,103		2,480		35,583
Other
Payment performance																		-
Performing		-		-		-		13		-		284		1,274		-		1,571
Nonperforming		-		-		-		-		-		-		-		30		30
Total Other consumer loans		-		-		-		13		-		284		1,274		30		1,601
Current period gross charge-offs		-		-		-		-		-		3		-		-		3
Total loans	$	152,862	$	392,342	$	595,071	$	145,185	$	69,817	$	119,603	$	198,916	$	3,010	$	1,676,806
Total current period gross charge-offs	$	-	$	-	$	142	$	-	$	-	$	3	$	-	$	-	$	145

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


	September 30, 2023		December 31, 2022
	(unaudited)
Total minimum lease payments to be received	$	16,356	$	22,533
Less: Unearned income		(1,061)		(1,798)
Plus: Indirect initial costs		20		33
Net investment in direct financing leases	$	15,315	$	20,768

Summary Of Future Minimum Lease Payments Receivable


2023, excluding the nine months ended September 30, 2023	$	1,713
2024		5,953
2025		5,283
2026		2,805
2027		552
Thereafter		50
Total future minimum payments	$	16,356