XML 31 R21.htm IDEA: XBRL DOCUMENT v3.23.1
Loans (Tables)
3 Months Ended
Mar. 31, 2023
Loans  
Schedule of loans

    

March 31, 2023

December 31, 2022

Commercial and industrial

$

254,592

$

258,901

Commercial real estate

 

1,192,501

 

1,098,054

Commercial real estate construction

 

116,077

 

109,570

Residential real estate

 

73,156

 

74,277

Home equity

 

12,067

 

12,329

Consumer

 

14,975

 

16,299

Total Loans

$

1,663,368

$

1,569,430

Allowance for credit losses

(24,726)

(21,832)

Net Loans

$

1,638,642

$

1,547,598

Schedule of activity in the allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method

The following tables present the activity in the allowance by portfolio segment for each of the three months ended March 31, 2023 and 2022:

    

Three Months Ended March 31, 2023

Commercial

Commercial

And

Commercial

Real Estate

Residential

Home

Industrial

Real Estate

Construction

Real Estate

Equity

Consumer

Total

Allowance for credit losses:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Beginning balance, prior to adoption of ASC 326

$

5,510

$

14,364

$

1,252

$

345

$

63

$

298

$

21,832

Impact of adopting ASC 326

72

1,737

(8)

(227)

(17)

(129)

1,428

Provision for credit losses(1)

(338)

585

381

930

26

(51)

 

1,533

Charge-offs

(142)

(36)

 

(178)

Recoveries

 

39

12

60

 

111

Ending balance

$

5,141

$

16,698

$

1,625

$

1,048

$

72

$

142

$

24,726

(1) The provision for credit losses on the income statement also includes approximately ($178) associated with off balance sheet ACL.

    

Three Months Ended March 31, 2022

Commercial

    

    

Commercial

    

    

    

    

and

Commercial

Real Estate

Residential

Home

Industrial

Real Estate

Construction

Real Estate

Equity

Consumer

Total

Allowance for loan losses:

  

  

  

  

  

  

  

Beginning balance

$

4,901

$

11,183

$

964

$

272

$

80

$

261

$

17,661

Provision for loan losses

 

549

(110)

332

22

(11)

141

 

923

Charge-offs

 

(48)

(119)

 

(167)

Recoveries

 

6

4

 

10

Ending balance

$

5,408

$

11,073

$

1,296

$

294

$

69

$

287

$

18,427

The following tables present the balance in the allowance and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2023 and December 31, 2022:

    

Commercial

    

    

Commercial

    

    

    

    

and

Commercial

Real Estate

Residential

Home

Industrial

Real Estate

Construction

Real Estate

Equity

Consumer

Total

March 31, 2023

Allowance for credit losses:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Ending balance:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

individually evaluated for impairment

$

597

$

369

$

$

$

$

$

966

collectively evaluated for impairment

 

4,544

 

16,329

 

1,625

 

1,048

 

72

 

142

 

23,760

Total ending allowance balance

$

5,141

$

16,698

$

1,625

$

1,048

$

72

$

142

$

24,726

Loans:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Ending balance:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

individually evaluated for impairment

$

816

$

22,486

$

$

1,250

$

49

$

102

$

24,703

collectively evaluated for impairment

 

253,776

 

1,170,015

 

116,077

 

71,906

 

12,018

 

14,873

 

1,638,665

Total ending loans balance

$

254,592

$

1,192,501

$

116,077

$

73,156

$

12,067

$

14,975

$

1,663,368

    

Commercial

    

    

Commercial

    

    

    

    

and

Commercial

Real Estate

Residential

Home

Industrial

Real Estate

Construction

Real Estate

Equity

Consumer

Total

December 31, 2022

Allowance for loan losses:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Ending balance:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

individually evaluated for impairment

$

653

$

380

$

$

$

$

$

1,033

collectively evaluated for impairment

 

4,857

 

13,984

 

1,252

 

345

 

63

 

298

 

20,799

Total ending allowance balance

$

5,510

$

14,364

$

1,252

$

345

$

63

$

298

$

21,832

Loans:

 

  

 

  

Ending balance:

 

  

 

  

individually evaluated for impairment

$

1,003

$

22,956

$

$

1,254

$

51

$

104

$

25,368

collectively evaluated for impairment

 

257,898

 

1,075,098

 

109,570

 

73,023

 

12,278

 

16,195

 

1,544,062

Total ending loans balance

$

258,901

$

1,098,054

$

109,570

$

74,277

$

12,329

$

16,299

$

1,569,430

Schedule of average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans

The following tables present loans individually evaluated for impairment recognized by class of loans as of March 31, 2023 and December 31, 2022:

    

Unpaid

    

    

Allowance for

Principal

Recorded

Credit Losses

Balance

Investment

Allocated

March 31, 2023

 

  

 

  

 

  

With no related allowance recorded

 

  

 

  

 

  

Commercial and industrial (1)

$

$

$

Commercial real estate (2)

 

17,516

 

16,910

 

Commercial real estate construction

 

 

 

Residential real estate (3)

 

1,263

 

1,250

 

Home equity (4)

 

53

 

49

 

Consumer

 

 

 

Total

$

18,832

$

18,209

$

With an allowance recorded:

 

  

 

  

 

  

Commercial and industrial (1)

$

931

$

816

$

597

Commercial real estate (2)

 

5,608

 

5,576

 

369

Commercial real estate construction

 

 

 

Residential real estate

 

 

 

Home equity

 

 

 

Consumer (5)

 

102

 

102

 

Total

$

6,641

$

6,494

$

966

(1)Commercial and industrial loans – secured by business assets and UCC filings
(2)Commercial real estate – secured by various types of commercial real estate
(3)Residential real estate – secured by residential real estate
(4)Home equity – secured by residential real estate
(5)Consumer – represents one personal loan

    

Unpaid

    

    

Allowance for

Principal

Recorded

Loan Losses

Balance

Investment

Allocated

December 31, 2022

With no related allowance recorded

 

  

 

  

 

  

Commercial and industrial

$

$

$

Commercial real estate

 

17,884

 

17,316

 

Commercial real estate construction

 

 

 

Residential real estate

 

1,266

 

1,254

 

Home equity

 

55

 

51

 

Consumer

 

 

 

Total

$

19,205

$

18,621

$

With an allowance recorded:

 

  

 

  

 

  

Commercial and industrial

$

1,011

$

1,003

$

653

Commercial real estate

 

5,665

 

5,640

 

380

Commercial real estate construction

 

 

 

Residential real estate

 

 

 

Home equity

 

 

 

Consumer

 

104

 

104

 

Total

$

6,780

$

6,747

$

1,033

The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three months ended March 31, 2023 and 2022:

    

Three Months Ended

    

Three Months Ended

March 31, 2023

March 31, 2022

Average

Interest

Average

Interest

Recorded

Income

Recorded

Income

Investment

Recognized(1)

Investment

Recognized(1)

With no related allowance recorded

 

  

 

  

 

  

 

  

Commercial and industrial

$

$

$

$

Commercial real estate

 

17,113

 

156

 

14,740

 

160

Commercial real estate construction

 

578

 

 

578

 

Residential real estate

 

724

 

1

 

704

 

8

Home equity

 

 

 

 

Consumer

 

 

 

 

Total

$

18,415

$

157

$

16,022

$

168

With an allowance recorded:

 

  

 

  

 

  

 

  

Commercial and industrial

$

4,329

$

52

$

888

$

13

Commercial real estate

 

2,188

 

29

 

8,708

 

83

Commercial real estate construction

 

 

 

 

Residential real estate

 

 

 

 

Home equity

 

 

 

 

Consumer

 

103

 

1

 

113

 

1

Total

$

6,620

$

82

$

9,709

$

97

(1)   Cash basis interest income approximates interest income recognized.

Schedule of recorded investment in non-accrual and loans past due over 90 days still on accrual by class of loans

Loans Past Due Over 90 Days

Non-accrual

Still Accruing

    

March 31, 2023

    

December 31, 2022

    

March 31, 2023

    

December 31, 2022

Commercial and industrial

$

817

$

1,003

$

652

$

1,850

Commercial real estate

 

3,549

 

3,882

 

535

 

Commercial real estate construction

 

 

 

725

 

Residential real estate

 

1,185

 

1,188

 

 

Home equity

 

49

 

51

 

 

Consumer

 

 

 

439

 

477

Total

$

5,600

$

6,124

$

2,351

$

2,327

Schedule of aging of the recorded investment in past-due loans

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

Loans

Past Due

Past Due

90 Days

Past Due

Not Past Due

March 31, 2023

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

784

$

62

$

1,468

$

2,314

$

252,278

Commercial real estate

 

440

 

 

1,219

 

1,659

 

1,190,842

Commercial real estate construction

 

 

 

725

 

725

 

115,352

Residential real estate

 

18

 

 

1,167

 

1,185

 

71,971

Home equity

 

371

 

 

 

371

 

11,696

Consumer

 

38

 

26

 

439

 

503

 

14,472

Total

$

1,651

$

88

$

5,018

$

6,757

$

1,656,611

    

30-59 Days

    

60-89 Days

    

Greater Than

    

Total

    

Loans

Past Due

Past Due

90 Days

Past Due

Not Past Due

December 31, 2022

Commercial and industrial

$

1,497

$

1,583

$

2,854

$

5,934

$

252,967

Commercial real estate

 

563

 

 

952

 

1,515

 

1,096,539

Commercial real estate construction

 

 

 

 

 

109,570

Residential real estate

 

2

 

 

1,188

 

1,190

 

73,087

Home equity

 

 

 

 

 

12,329

Consumer

 

584

 

634

 

476

 

1,694

 

14,605

Total

$

2,646

$

2,217

$

5,470

$

10,333

$

1,559,097

Schedule of risk category of loans by class of loans

The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at March 31, 2023 and gross charge-offs for the three months ended March 31, 2023:

Revolving

    

    

    

    

    

    

Revolving

    

Loans to

    

2023

2022

2021

2020

2019

Prior

Loans

Term Loans

Total

Commercial and industrial

Pass

$

3,964

63,616

61,800

54,315

30,982

38,289

$

252,966

Special Mention

 

425

 

425

Substandard

 

385

400

416

 

1,201

Total Commercial and industrial

$

3,964

64,001

61,800

54,715

30,982

39,130

$

254,592

Current period gross charge-offs

6

110

26

142

Commercial real estate

 

 

Pass

$

103,290

332,751

243,845

168,195

97,813

221,786

2,578

$

1,170,258

Special Mention

 

7,001

 

7,001

Substandard

 

2,553

6,349

6,340

 

15,242

Total Commercial real estate

$

103,290

332,751

243,845

170,748

104,162

235,127

2,578

$

1,192,501

Current period gross charge-offs

Commercial real estate construction

Pass

$

210

32,811

59,231

23,825

$

116,077

Special Mention

 

 

Substandard

 

 

Total Commercial real estate construction

$

210

32,811

59,231

23,825

$

116,077

Current period gross charge-offs

Residential real estate

Pass

$

3,704

20,808

12,793

10,079

4,756

19,831

$

71,971

Special Mention

 

 

Substandard

 

589

596

 

1,185

Total Residential real estate

$

3,704

20,808

12,793

10,079

5,345

20,427

$

73,156

Current period gross charge-offs

Home equity

Pass

$

57

119

18

93

11,731

$

12,018

Special Mention

 

 

Substandard

 

49

 

49

Total Home Equity

$

57

119

18

93

11,780

$

12,067

Current period gross charge-offs

Consumer

Pass

$

28

699

3,011

5,966

43

60

5,066

$

14,873

Special Mention

 

 

Substandard

 

102

 

102

Total Consumer

$

28

699

3,011

5,966

43

162

5,066

$

14,975

Current period gross charge-offs

11

25

36

Total Loans

$

111,253

451,189

380,698

265,333

140,625

294,846

19,424

$

1,663,368

Gross charge-offs

$

6

11

110

25

26

$

178

Based on the analysis performed as of December 31, 2022, the risk category of loans by class of loans is as follows:

    

    

Special

    

    

    

    

Pass

Mention

Substandard

Doubtful

Loss

Total

December 31, 2022

 

  

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

256,939

$

575

$

1,387

$

$

$

258,901

Commercial real estate

 

1,074,952

 

7,399

 

15,703

 

 

 

1,098,054

Commercial real estate construction

 

109,570

 

 

 

 

 

109,570

Residential real estate

 

73,089

 

 

1,188

 

 

 

74,277

Home equity

 

12,278

 

 

51

 

 

 

12,329

Consumer

 

16,195

 

 

104

 

 

 

16,299

Total

$

1,543,023

$

7,974

$

18,433

$

$

$

1,569,430