Loans |
6 Months Ended |
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Jun. 30, 2024 | |
Loans [Abstract] | |
Loans | 3. The following table is a summary of the distribution of At 547.9 534.2 commercial real estate Reserve Bank of Atlanta. Allowance for Credit Losses In methodology to estimate the quantitative portion discounted cash flow to assist FFIEC forecasts in projective receivables use at least one product growth (national is used, Adjustments for economic expectations are made through Qualitative factors (“Q-Factors”) used in the ACL methodology • • • • • • • • Changes in the ACL for the three and six months ended June At June 22.2 21.1 1.1 million in the ACL was due to loan growth. Charge offs for the three months ended 5 for the six months ended June 30, 2024 totaled $ 10 The Company 40 21 charge offs related to loans were originated in 2015 and 19 months ended 45 24 and $ 21 The improvements in improvement in national housing prices on levels. calculation. Our ACL loans, expected losses on the residential loan segment. As of June 30, the 218 1 everything else being and does not represent a change in management’s As of June 30, 2024, we stress segment in measure the 5.9 29.5 % increase in represent a change in management’s judgement. The ACL are as follows (in thousands): Credit Quality Indicators The Company grades loans based on the estimated capability of the borrower to repay the contractual obligation of the loan agreement based payment periodically. The Company's internally assigned credit risk grades are as follows: Pass – Loans indicate different levels of satisfactory Special Mention close attention. If left uncorrected, these potential weaknesses prospects for the loan or of the institution’s Substandard – Loans classified as substandard are inadequately protected capacity of the obligator or of the collateral pledged, if weaknesses that jeopardize the liquidation of the debt. institution will sustain some loss if the deficiencies are Doubtful the added characteristic that the weaknesses make collection facts, conditions, and values, highly questionable and improbable. Loss – Loans classified as loss are considered uncollectible. Loan credit exposures by internally assigned grades are Loan Aging The Company The Company The December 31, 2023 (in thousands): Non-accrual Status The following table and still accruing as of June 30, 2024 and as of December Accrued interest no attributable to non-accrual these loans for 11 thousand and 13 thousand, respectively, Collateral-Dependent Loans A expected to no loans as of June 30, Loan Modifications to Borrowers Experiencing Financial The following ended June 30, 2024 (in thousands): The Company had 30, 2024 and one new modification for the six months ended June 30, 2024. There were no subsequently modification to borrowers experiencing no June 30, 2024 December 31, 2023 Total Percent of Total Total Percent of Total Residential Real Estate $ 256,807 13.8 % $ 204,419 11.5 % Commercial Real Estate 1,053,030 56.4 % 1,047,593 58.8 % Commercial and Industrial 248,525 13.3 % 219,757 12.4 % Foreign Banks 112,510 6.0 % 114,945 6.5 % Consumer and Other 194,644 10.5 % 191,930 10.8 % Total 1,865,516 100.0 % 1,778,644 100.0 % Plus: Deferred fees/costs 3,733 2,183 Total 1,869,249 1,780,827 Less: Allowance for credit losses 22,230 21,084 Total $ 1,847,019 $ 1,759,743 Residential Real Estate Commercial Real Estate Commercial and Industrial Foreign Banks Consumer and Other Total Three Months Ended June 30, 2024 Beginning balance $ 2,930 $ 10,302 $ 4,272 $ 794 $ 3,156 $ 21,454 Provision for credit losses (1) 257 (30) 474 98 (25) 774 Recoveries 6 - 1 - - 7 Charge-offs - - - - (5) (5) Ending Balance $ 3,193 $ 10,272 $ 4,747 $ 892 $ 3,126 $ 22,230 Six Months Ended June 30, 2024 Beginning balance $ 2,695 $ 10,366 $ 3,974 $ 911 $ 3,138 $ 21,084 Provision for credit losses (2) 492 (94) 762 (19) (4) 1,137 Recoveries 6 - 11 - 2 19 Charge-offs - - - - (10) (10) Ending Balance $ 3,193 $ 10,272 $ 4,747 $ 892 $ 3,126 $ 22,230 (1) Provision for credit losses excludes a $ 15 3 thousand charge related to investment securities held to maturity. (2) Provision for credit losses excludes a $ 58 1 thousand charge related to investment securities held to maturity. Residential Real Estate Commercial Real Estate Commercial and Industrial Foreign Banks Consumer and Other Total Three Months Ended June 30, 2023 Beginning balance $ 2,819 $ 10,453 $ 2,367 $ 772 $ 2,476 $ 18,887 Provision for credit losses (1) (148) (270) 125 (95) 345 (43) Recoveries 2 - 8 - 1 11 Charge-offs - - - - (40) (40) Ending Balance $ 2,673 $ 10,183 $ 2,500 $ 677 $ 2,782 $ 18,815 Six Months Ended June 30, 2023 Beginning balance $ 1,352 $ 10,143 $ 4,163 $ 720 $ 1,109 $ 17,487 Cumulative effect of adoption of accounting principle (2) 1,238 1,105 (2,158) 23 858 1,066 Provision for credit losses (3) 73 (1,065) 443 (66) 857 242 Recoveries 10 - 52 - 3 65 Charge-offs - - - - (45) (45) Ending Balance $ 2,673 $ 10,183 $ 2,500 $ 677 $ 2,782 $ 18,815 (1) Provision for credit losses excludes a $ 62 19 thousand expense related to investment securities held to maturity. (2) Impact of CECL adoption on January 1, 2023. (3) Provision for credit losses excludes a $ 22 19 thousand expense related to investment securities held to maturity. As of June 30, 2024 Term Loans by Origination Year Revolving Loans Total 2024 2023 2022 2021 2020 Prior Residential real estate Pass $ 63,233 $ 40,811 $ 36,206 $ 24,077 $ 5,855 $ 77,144 $ 8,894 $ 256,220 Substandard - - - - - 587 - 587 Total 63,233 40,811 36,206 24,077 5,855 77,731 8,894 256,807 Commercial real estate Pass 47,957 141,375 326,081 178,623 100,704 247,850 4,287 1,046,877 Substandard - - - 5,463 690 - - 6,153 Total 47,957 141,375 326,081 184,086 101,394 247,850 4,287 1,053,030 Commercial and industrial Pass 42,342 93,995 36,074 31,401 5,038 15,055 22,869 246,774 Substandard - - - 552 - 1,199 - 1,751 Total 42,342 93,995 36,074 31,953 5,038 16,254 22,869 248,525 Foreign banks Pass 85,759 26,751 - - - - - 112,510 Total 85,759 26,751 - - - - - 112,510 Consumer and other loans Pass 25,731 57,722 68,818 38,250 498 1,708 1,917 194,644 Substandard - - - - - - - - Total 25,731 57,722 68,818 38,250 498 1,708 1,917 194,644 Total Pass 265,022 360,654 467,179 272,351 112,095 341,757 37,967 1,857,025 Special Mention - - - - - - - - Substandard - - - 6,015 690 1,786 - 8,491 Doubtful - - - - - - - - Total $ 265,022 $ 360,654 $ 467,179 $ 278,366 $ 112,785 $ 343,543 $ 37,967 $ 1,865,516 Residential Real Estate Commercial Real Estate Commercial and Industrial Foreign Banks Consumer and Other Total June 30, 2024: Allowance for credit losses: Individually evaluated $ 45 $ - $ 50 $ - $ - $ 95 Collectively evaluated 3,148 10,272 4,697 892 3,126 22,135 Balances, end of period $ 3,193 $ 10,272 $ 4,747 $ 892 $ 3,126 $ 22,230 Loans: Individually evaluated $ 7,209 $ - $ 747 $ - $ - $ 7,956 Collectively evaluated 249,598 1,053,030 247,778 112,510 194,644 1,857,560 Balances, end of period $ 256,807 $ 1,053,030 $ 248,525 $ 112,510 $ 194,644 $ 1,865,516 December 31, 2023: Allowance for credit losses: Individually evaluated $ 145 $ - $ 128 $ - $ - $ 273 Collectively evaluated 2,550 10,366 3,846 911 3,138 20,811 Balances, end of period $ 2,695 $ 10,366 $ 3,974 $ 911 $ 3,138 $ 21,084 Loans: Individually evaluated $ 6,994 $ - $ 1,668 $ - $ - $ 8,662 Collectively evaluated 197,425 1,047,593 218,089 114,945 191,930 1,769,982 Balances, end of period $ 204,419 $ 1,047,593 $ 219,757 $ 114,945 $ 191,930 $ 1,778,644 As of December 31, 2023 Term Loans by Origination Year Revolving Loans Total 2023 2022 2021 2020 2019 Prior Residential real estate Pass $ 44,365 $ 36,325 $ 26,180 $ 6,080 $ 9,325 $ 75,654 $ 6,198 $ 204,127 Substandard - - - - 292 - - 292 Total 44,365 36,325 26,180 6,080 9,617 75,654 6,198 204,419 Commercial real estate Pass 148,311 337,938 184,024 104,182 78,153 182,714 4,710 1,040,032 Substandard - - 6,867 694 - - - 7,561 Total 148,311 337,938 190,891 104,876 78,153 182,714 4,710 1,047,593 Commercial and industrial Pass 97,753 37,414 34,090 6,499 13,706 3,113 25,554 218,129 Substandard - - 330 - 1,298 - - 1,628 Total 97,753 37,414 34,420 6,499 15,004 3,113 25,554 219,757 Foreign banks Pass 114,945 - - - - - - 114,945 Total 114,945 - - - - - - 114,945 Consumer and other loans Pass 71,593 74,387 41,966 615 560 1,337 1,472 191,930 Total 71,593 74,387 41,966 615 560 1,337 1,472 191,930 Total Pass 476,967 486,064 286,260 117,376 101,744 262,818 37,934 1,769,163 Special Mention - - - - - - - - Substandard - - 7,197 694 1,590 - - 9,481 Doubtful - - - - - - - - Total $ 476,967 $ 486,064 $ 293,457 $ 118,070 $ 103,334 $ 262,818 $ 37,934 $ 1,778,644 Accruing As of June 30, 2024 Current Past Due 30- 89 Days Past Due 90 Days or > and Still Accruing Total Accruing Non-Accrual Total Loans Residential real estate: Home equity line of credit and other $ 547 $ - $ - $ 547 $ - $ 547 1-4 family residential 197,537 5,757 - 203,294 - 203,294 Condo residential 52,646 - - 52,646 320 52,966 250,730 5,757 - 256,487 320 256,807 Commercial real estate: Land and construction 40,049 - - 40,049 - 40,049 Multi-family residential 204,811 - - 204,811 - 204,811 Condo commercial 58,292 - - 58,292 - 58,292 Commercial property 749,868 - - 749,868 - 749,868 Leasehold improvements 10 - - 10 - 10 1,053,030 - - 1,053,030 - 1,053,030 Commercial and industrial: Secured 229,428 - - 229,428 438 229,866 Unsecured 18,659 - - 18,659 - 18,659 248,087 - - 248,087 438 248,525 Foreign banks 112,510 - - 112,510 - 112,510 Consumer and other 194,644 - - 194,644 - 194,644 Total $ 1,859,001 $ 5,757 $ - $ 1,864,758 $ 758 $ 1,865,516 Accruing As of December 31, 2023: Current Past Due 30-89 Days Past Due 90 Days or > and Still Accruing Total Accruing Non-Accrual Total Loans Residential real estate: Home equity line of credit and other $ 559 $ - $ - $ 559 $ - $ 559 1-4 family residential 155,842 711 - 156,553 - 156,553 Condo residential 43,572 3,735 - 47,307 - 47,307 199,973 4,446 - 204,419 - 204,419 Commercial real estate: Land and construction 33,710 - - 33,710 - 33,710 Multi-family residential 181,287 - - 181,287 - 181,287 Condo commercial 58,106 - - 58,106 - 58,106 Commercial property 772,569 1,890 - 774,459 - 774,459 Leasehold improvements 31 - - 31 - 31 1,045,703 1,890 - 1,047,593 - 1,047,593 Commercial and industrial: Secured 200,235 29 - 200,264 468 200,732 Unsecured 19,025 - - 19,025 - 19,025 219,260 29 - 219,289 468 219,757 Foreign banks 114,945 - - 114,945 - 114,945 Consumer and other 191,930 - - 191,930 - 191,930 Total $ 1,771,811 $ 6,365 $ - $ 1,778,176 $ 468 $ 1,778,644 June 30, 2024 Nonaccrual Loans With No Related Allowance Nonaccrual Loans With Related Allowance Total Non- accruals Loans Past Due Over 90 Days and Still Accruing Residential real estate $ 320 $ - $ 320 $ - Commercial and industrial - 438 438 - Total $ 320 $ 438 $ 758 $ - December 31, 2023 Nonaccrual Loans With No Related Allowance Nonaccrual Loans With Related Allowance Total Non- accruals Loans Past Due Over 90 Days and Still Accruing Commercial and industrial $ - $ 468 $ 468 $ - Total $ - $ 468 $ 468 $ - Recorded Investment Prior to Modification Recorded Investment After Modification Number of Loans Combination Modifications Total Modifications Number of Loans Combination Modifications Total Modifications Commercial and industrial 1 $ 468 $ 468 1 $ 468 $ 468 Total 1 $ 468 $ 468 1 $ 468 $ 468 |