Loans (Tables)
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3 Months Ended |
Mar. 31, 2023 |
Loans |
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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 | | | | | | | | | |
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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 |
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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.
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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 | |
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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 |
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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 |
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