Loans |
Note 4 - Loans
The following table summarizes the composition
of our loan portfolio. Total loans are recorded net of deferred loan fees and costs, which totaled $2.0 million and $1.9 million as of
March 31, 2023 and December 31, 2022, respectively.
Schedule
of Loan Portfolio
| |
March 31, | | |
December 31, | |
(Dollars in thousands) | |
2023 | | |
2022 | |
Commercial, financial and agricultural | |
$ | 73,898 | | |
$ | 72,409 | |
Real estate: | |
| | | |
| | |
Construction | |
| 84,442 | | |
| 91,223 | |
Mortgage-residential | |
| 68,983 | | |
| 65,759 | |
Mortgage-commercial | |
| 722,603 | | |
| 709,218 | |
Consumer: | |
| | | |
| | |
Home equity | |
| 29,524 | | |
| 28,723 | |
Other | |
| 13,270 | | |
| 13,525 | |
Total loans, net of deferred loan fees and costs | |
$ | 992,720 | | |
$ | 980,857 | |
The Company categorizes loans into
risk categories based on relevant information about the ability of borrowers to service their debt, including current financial
information, historical payment experience, credit documentation, public information, and current economic trends, among other
factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly
basis. The Company uses the following definitions for risk ratings:
Special Mention.
Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected,
these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit
position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient
risk to warrant adverse classification.
Substandard. Loans
classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral
pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They
are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful. Loans
classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that
the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly
questionable and improbable.
The following table presents the
Company’s recorded investment in loans by credit quality indicators by year of origination as of March 31, 2023:
Schedule of loan category and loan by risk categories
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
Term Loans by
year of Origination | |
($
in thousands) | |
2019 | | |
2020 | | |
2021 | | |
2022 | | |
2023 | | |
Prior | | |
Revolving | | |
Revolving
Converted
to Term | | |
Total | |
Commercial,
Financial & Agriculture | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Pass | |
$ | 1,954 | | |
$ | 1,893 | | |
| 26,328 | | |
| 12,852 | | |
| 2,334 | | |
| 10,505 | | |
| 17,900 | | |
| — | | |
| 73,766 | |
Special
Mention | |
| — | | |
| — | | |
| 62 | | |
| — | | |
| — | | |
| 25 | | |
| — | | |
| — | | |
| 87 | |
Substandard | |
| — | | |
| 20 | | |
| 25 | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 45 | |
Total
Commercial, Financial & Agriculture | |
| 1,954 | | |
| 1,913 | | |
| 26,415 | | |
| 12,852 | | |
| 2,334 | | |
| 10,530 | | |
| 17,900 | | |
| — | | |
| 73,898 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current
period gross write-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Real
estate Construction | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Pass | |
| 8,543 | | |
| 12,629 | | |
| 17,328 | | |
| 32,263 | | |
| 4,896 | | |
| 212 | | |
| 8,571 | | |
| — | | |
| 84,442 | |
Total
Real estate Construction | |
| 8,543 | | |
| 12,629 | | |
| 17,328 | | |
| 32,263 | | |
| 4,896 | | |
| 212 | | |
| 8,571 | | |
| — | | |
| 84,442 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current
period gross write-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Real
estate Mortgage-residential | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Pass | |
| 2,670 | | |
| 11,323 | | |
| 7,023 | | |
| 31,311 | | |
| 5,965 | | |
| 9,366 | | |
| 365 | | |
| 497 | | |
| 68,520 | |
Special
Mention | |
| — | | |
| 28 | | |
| — | | |
| — | | |
| — | | |
| 403 | | |
| — | | |
| — | | |
| 431 | |
Substandard | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 32 | | |
| — | | |
| — | | |
| 32 | |
Total
Real estate Mortgage-residential | |
| 2,670 | | |
| 11,351 | | |
| 7,023 | | |
| 31,311 | | |
| 5,965 | | |
| 9,801 | | |
| 365 | | |
| 497 | | |
| 68,983 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current
period gross write-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Real
estate Mortgage-commercial | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Pass | |
| 49,718 | | |
| 93,745 | | |
| 136,731 | | |
| 194,651 | | |
| 13,548 | | |
| 217,917 | | |
| 12,117 | | |
| — | | |
| 718,427 | |
Special
Mention | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 23 | | |
| — | | |
| — | | |
| 23 | |
Substandard | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 4,153 | | |
| — | | |
| — | | |
| 4,153 | |
Total
Real estate Mortgage-commercial | |
| 49,718 | | |
| 93,745 | | |
| 136,731 | | |
| 194,651 | | |
| 13,548 | | |
| 222,093 | | |
| 12,117 | | |
| — | | |
| 722,603 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current
period gross write-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Consumer
- Home Equity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Pass | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 28,364 | | |
| — | | |
| 28,364 | |
Special
Mention | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 88 | | |
| — | | |
| 88 | |
Substandard | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 1,072 | | |
| — | | |
| 1,072 | |
Total
Consumer - Home Equity | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 29,524 | | |
| — | | |
| 29,524 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current
period gross write-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Consumer
- Other | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Pass | |
| 484 | | |
| 726 | | |
| 892 | | |
| 3,154 | | |
| 669 | | |
| 965 | | |
| 6,362 | | |
| — | | |
| 13,252 | |
Special
Mention | |
| — | | |
| 10 | | |
| — | | |
| — | | |
| — | | |
| 8 | | |
| — | | |
| — | | |
| 18 | |
Substandard | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
Total
Consumer - Other | |
| 484 | | |
| 736 | | |
| 892 | | |
| 3,154 | | |
| 669 | | |
| 973 | | |
| 6,362 | | |
| — | | |
| 13,270 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current
period gross write-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 2 | | |
| — | | |
| 2 | |
Loans not meeting the criteria above that
are analyzed individually as part of the above described process are considered as pass rated loans. Based on the most recent analysis
performed, the risk category of loans by class of loans is shown in the table below as of December 31, 2022. As of December 31, 2022,
no loans were classified as doubtful.
| |
| | |
| | |
| | |
| | |
| |
(Dollars in thousands) | |
| | |
| | |
| | |
| | |
| |
December 31, 2022 | |
Pass | | |
Special Mention | | |
Substandard | | |
Doubtful | | |
Total | |
Commercial, financial & agricultural | |
$ | 72,333 | | |
$ | 47 | | |
$ | 29 | | |
$ | — | | |
$ | 72,409 | |
Real estate: | |
| — | | |
| — | | |
| — | | |
| | | |
| | |
Construction | |
| 91,223 | | |
| — | | |
| — | | |
| — | | |
| 91,223 | |
Mortgage – residential | |
| 65,505 | | |
| 220 | | |
| 34 | | |
| — | | |
| 65,759 | |
Mortgage – commercial | |
| 704,357 | | |
| 80 | | |
| 4,781 | | |
| — | | |
| 709,218 | |
Consumer: | |
| — | | |
| — | | |
| — | | |
| | | |
| | |
Home Equity | |
| 27,531 | | |
| 117 | | |
| 1,075 | | |
| — | | |
| 28,723 | |
Other | |
| 13,269 | | |
| 93 | | |
| 163 | | |
| — | | |
| 13,525 | |
Total | |
$ | 974,218 | | |
$ | 557 | | |
$ | 6,082 | | |
$ | — | | |
$ | 980,857 | |
The detailed activity in the allowance
for loan losses and the recorded investment in loans receivable as of and for the three months ended March 31, 2023 under CECL
methodology:
Schedule of Allowance for Credit Losses
($ in thousands) | |
Commercial | | |
Real Estate
Construction | | |
Real Estate
Mortgage
Residential | | |
Real Estate
Mortgage
Commercial | | |
Consumer
Home
Equity | | |
Consumer
Other | | |
Unallocated | | |
Total
Loans | |
Balance at December 31, 2022 | |
$ | 849 | | |
$ | 75 | | |
$ | 723 | | |
$ | 8,569 | | |
$ | 314 | | |
$ | 170 | | |
$ | 636 | | |
$ | 11,336 | |
Adjustment to allowance for adoption of ASU 2016-13 | |
| 193 | | |
| 1,075 | | |
| 32 | | |
| (883 | ) | |
| 166 | | |
| 39 | | |
| (636 | ) | |
| (14 | ) |
Charge-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (9 | ) | |
| — | | |
| (9 | ) |
Recoveries | |
| 2 | | |
| — | | |
| — | | |
| 11 | | |
| 3 | | |
| 4 | | |
| — | | |
| 20 | |
Provision for credit losses | |
| (48 | ) | |
| (70 | ) | |
| 35 | | |
| 230 | | |
| (59 | ) | |
| (1 | ) | |
| — | | |
| 87 | |
Balance at March 31, 2023 | |
$ | 996 | | |
$ | 1,080 | | |
$ | 790 | | |
$ | 7,927 | | |
$ | 424 | | |
$ | 203 | | |
| — | | |
$ | 11,420 | |
Prior to the adoption of ASC 326 on January
1, 2023, the Company calculated the allowance for loan losses under the incurred loss methodology. The following tables are disclosures
related to the allowance for the three months ended March 31, 2022.
| |
| | |
| | |
Real estate | | |
Real estate | | |
Consumer | | |
| | |
| | |
| |
| |
| | |
Real estate | | |
Mortgage | | |
Mortgage | | |
Home | | |
Consumer | | |
| | |
| |
(Dollars in thousands) | |
Commercial | | |
Construction | | |
Residential | | |
Commercial | | |
equity | | |
Other | | |
Unallocated | | |
Total | |
March 31, 2022 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Allowance for loan losses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Beginning balance December 31, 2021 | |
$ | 853 | | |
$ | 113 | | |
$ | 560 | | |
$ | 8,570 | | |
$ | 333 | | |
$ | 126 | | |
$ | 624 | | |
$ | 11,179 | |
Charge-offs | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (14 | ) | |
| — | | |
| (14 | ) |
Recoveries | |
| 11 | | |
| — | | |
| — | | |
| 6 | | |
| 3 | | |
| 3 | | |
| — | | |
| 23 | |
Provisions | |
| (15 | ) | |
| (22 | ) | |
| (47 | ) | |
| (68 | ) | |
| (5 | ) | |
| 35 | | |
| (3 | ) | |
| (125 | ) |
Ending balance March 31, 2022 | |
$ | 849 | | |
$ | 91 | | |
$ | 513 | | |
$ | 8,508 | | |
$ | 331 | | |
$ | 150 | | |
$ | 621 | | |
$ | 11,063 | |
(Dollars in thousands) | |
Commercial | | |
Real estate Construction | | |
Real estate Mortgage Residential | | |
Real estate Mortgage Commercial | | |
Consumer Home equity | | |
Consumer Other | | |
Unallocated | | |
Total | |
December 31, 2022
Loans receivable: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Ending balance—total | |
$ | 72,409 | | |
$ | 91,223 | | |
$ | 65,759 | | |
$ | 709,218 | | |
$ | 28,723 | | |
$ | 13,525 | | |
$ | — | | |
$ | 980,857 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Ending balances: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Individually evaluated for impairment | |
| 29 | | |
| — | | |
| 34 | | |
| 4,752 | | |
| 168 | | |
| — | | |
| — | | |
| 4,983 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Collectively evaluated for impairment | |
| 72,380 | | |
| 91,223 | | |
| 65,725 | | |
| 704,466 | | |
| 28,555 | | |
| 13,525 | | |
| — | | |
| 975,874 | |
The following tables are by loan
category and present March 31, 2022, and December 31, 2022 loans individually evaluated and considered impaired under FASB
ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing TDRs.
The following table presents information
related to the average recorded investment and interest income recognized on impaired loans, excluding PCI loans, for the three
months ended March 31, 2022.
| |
Three months ended | |
| |
Average | | |
Interest | |
(Dollars in thousands) | |
Recorded | | |
Income | |
March 31, 2022 | |
Investment | | |
Recognized | |
With no allowance recorded: | |
| | | |
| | |
Commercial | |
$ | — | | |
$ | — | |
Real estate: | |
| | | |
| | |
Construction | |
| — | | |
| — | |
Mortgage-residential | |
| 42 | | |
| 1 | |
Mortgage-commercial | |
| 1,737 | | |
| 46 | |
Consumer: | |
| | | |
| | |
Home Equity | |
| — | | |
| — | |
Other | |
| — | | |
| — | |
| |
| | | |
| | |
With an allowance recorded: | |
| | | |
| | |
Commercial | |
| — | | |
| — | |
Real estate: | |
| | | |
| | |
Construction | |
| — | | |
| — | |
Mortgage-residential | |
| — | | |
| — | |
Mortgage-commercial | |
| — | | |
| — | |
Consumer: | |
| | | |
| | |
Home Equity | |
| — | | |
| — | |
Other | |
| — | | |
| — | |
| |
| | | |
| | |
Total: | |
| | | |
| | |
Commercial | |
| — | | |
| — | |
Real estate: | |
| | | |
| | |
Construction | |
| — | | |
| — | |
Mortgage-residential | |
| 42 | | |
| 1 | |
Mortgage-commercial | |
| 1,737 | | |
| 46 | |
Consumer: | |
| | | |
| | |
Home Equity | |
| — | | |
| — | |
Other | |
| — | | |
| — | |
| |
$ | 1,779 | | |
$ | 47 | |
The following table presents loans
individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2022
| |
| | |
Unpaid | | |
| |
(Dollars in thousands) | |
Recorded | | |
Principal | | |
Related | |
December 31, 2022 | |
Investment | | |
Balance | | |
Allowance | |
With
no allowance recorded: | |
| | | |
| | | |
| | |
Commercial | |
$ | 29 | | |
$ | 29 | | |
$ | — | |
Real
estate: | |
| | | |
| | | |
| | |
Construction | |
| — | | |
| — | | |
| — | |
Mortgage-residential | |
| 34 | | |
| 51 | | |
| — | |
Mortgage-commercial | |
| 4,752 | | |
| 5,260 | | |
| — | |
Consumer: | |
| | | |
| | | |
| | |
Home
Equity | |
| 168 | | |
| 168 | | |
| — | |
Other | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | |
With
an allowance recorded: | |
| | | |
| | | |
| | |
Commercial | |
| — | | |
| — | | |
| — | |
Real
estate: | |
| | | |
| | | |
| | |
Construction | |
| — | | |
| — | | |
| — | |
Mortgage-residential | |
| — | | |
| — | | |
| — | |
Mortgage-commercial | |
| — | | |
| — | | |
| — | |
Consumer: | |
| | | |
| | | |
| | |
Home
Equity | |
| — | | |
| — | | |
| — | |
Other | |
| — | | |
| — | | |
| — | |
| |
| | | |
| | | |
| | |
Total: | |
| | | |
| | | |
| | |
Commercial | |
| 29 | | |
| 29 | | |
| — | |
Real
estate: | |
| | | |
| | | |
| | |
Construction | |
| — | | |
| — | | |
| — | |
Mortgage-residential | |
| 34 | | |
| 51 | | |
| — | |
Mortgage-commercial | |
| 4,752 | | |
| 5,260 | | |
| — | |
Consumer: | |
| | | |
| | | |
| | |
Home
Equity | |
| 168 | | |
| 168 | | |
| — | |
Other | |
| — | | |
| — | | |
| — | |
| |
$ | 4,983 | | |
$ | 5,508 | | |
$ | — | |
Loan modifications for borrowers
that are in financial distress that are still accruing and included in impaired loans at March 31, 2023 and December 31,
2022 amounted to $85 thousand and $88 thousand, respectively.
There were no additional loan modifications
for borrowers in financial distress for the three months ended March 31, 2023.
The following tables are by loan category
and present loans past due and on non-accrual status as of March 31, 2023 and December 31, 2022:
Schedule
of Loan Category and Aging Analysis of Loans
| |
| | |
| | |
Greater than | | |
| | |
| | |
| | |
| |
(Dollars in thousands) | |
30-59 Days | | |
60-89 Days | | |
90 Days and | | |
| | |
Total | | |
| | |
| |
March 31, 2023 | |
Past Due | | |
Past Due | | |
Accruing | | |
Non-accrual | | |
Past Due | | |
Current | | |
Total Loans | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Commercial | |
$ | 11 | | |
$ | — | | |
$ | — | | |
$ | 45 | | |
$ | 56 | | |
$ | 73,842 | | |
$ | 73,898 | |
Real estate: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Construction | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 84,442 | | |
| 84,442 | |
Mortgage-residential | |
| — | | |
| — | | |
| — | | |
| 32 | | |
| 32 | | |
| 68,951 | | |
| 68,983 | |
Mortgage-commercial | |
| 63 | | |
| — | | |
| — | | |
| 4,044 | | |
| 4,107 | | |
| 718,496 | | |
| 722,603 | |
Consumer: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Home equity | |
| — | | |
| — | | |
| — | | |
| 4 | | |
| 4 | | |
| 29,520 | | |
| 29,524 | |
Other | |
| 9 | | |
| — | | |
| — | | |
| — | | |
| 9 | | |
| 13,261 | | |
| 13,270 | |
Total | |
$ | 83 | | |
$ | — | | |
$ | — | | |
$ | 4,125 | | |
$ | 4,208 | | |
$ | 988,512 | | |
$ | 992,720 | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| |
| | |
| | |
Greater than | | |
| | |
| | |
| | |
| |
(Dollars in thousands) | |
30-59 Days | | |
60-89 Days | | |
90 Days and | | |
| | |
Total | | |
| | |
| |
December 31, 2022 | |
Past Due | | |
Past Due | | |
Accruing | | |
Non-accrual | | |
Past Due | | |
Current | | |
Total Loans | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Commercial | |
$ | 87 | | |
$ | — | | |
$ | — | | |
$ | 29 | | |
$ | 116 | | |
$ | 72,293 | | |
$ | 72,409 | |
Real estate: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Construction | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| 91,223 | | |
| 91,223 | |
Mortgage-residential | |
| 327 | | |
| — | | |
| — | | |
| 34 | | |
| 361 | | |
| 65,398 | | |
| 65,759 | |
Mortgage-commercial | |
| 46 | | |
| 8 | | |
| — | | |
| 4,664 | | |
| 4,718 | | |
| 704,500 | | |
| 709,218 | |
Consumer: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Home equity | |
| — | | |
| — | | |
| — | | |
| 168 | | |
| 168 | | |
| 28,555 | | |
| 28,723 | |
Other | |
| 96 | | |
| — | | |
| 2 | | |
| — | | |
| 98 | | |
| 13,427 | | |
| 13,525 | |
Total | |
$ | 556 | | |
$ | 8 | | |
$ | 2 | | |
$ | 4,895 | | |
$ | 5,461 | | |
$ | 975,396 | | |
$ | 980,857 | |
The following table is a summary
of the Company’s non-accrual loans by major categories for the periods indicated:
Schedule of Nonaccrual
Loans
|
|
|
|
|
|
|
|
|
|
| | |
| | |
| |
CECL | | |
Incurred Loss | |
| |
March 31, 2023 | | |
December 31, 2022 | |
($ in thousands) | |
Non-accrual
Loans with
No Allowance | | |
Non-accrual
Loans with an
Allowance | | |
Total
Non-accrual
Loans | | |
Non-accrual Loans | |
Commercial, Financial & Agriculture | |
$ | — | | |
| 45 | | |
| 45 | | |
| 29 | |
Real Estate Construction | |
| — | | |
| — | | |
| — | | |
| — | |
Real Estate Mortgage Residential | |
| — | | |
| 32 | | |
| 32 | | |
| 34 | |
Real Estate Mortgage Commercial | |
| 3,882 | | |
| 162 | | |
| 4,044 | | |
| 4,664 | |
Consumer Home Equity | |
| — | | |
| 4 | | |
| 4 | | |
| 168 | |
Consumer Other | |
| — | | |
| — | | |
| — | | |
| — | |
Total Loans | |
$ | 3,882 | | |
$ | 243 | | |
$ | 4,125 | | |
$ | 4,895 | |
The Company recognized $85.5 thousand
of interest income on non-accrual loans during the three months ended March 31, 2023.
For the three months ended March 31, 2023
less than $1 thousand of accrued interest was written off by reversing interest income.
The Company
has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial
difficulty.
The following table details the amortized
cost of collateral dependent loans:
Schedule
of Amortized Cost of Collateral Dependent Loans
($ in thousands) | |
For the Three Months
Ended March 31, 2023 | |
Commercial | |
$ | 45 | |
Real Estate: | |
| | |
Mortgage - Residential | |
| 32 | |
Mortgage - Commercial | |
| 4,044 | |
Consumer: | |
| | |
Home Equity | |
| 4 | |
Total Loans | |
$ | 4,125 | |
Unfunded Commitments
The Company maintains an allowance
for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit,
as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this
extension of credit is not unconditionally cancellable (i.e. commitment cannot be cancelled at any time). The allowance for off-balance
sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood
that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected
credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing
the allowance for credit losses on loans. The allowance for credit losses for unfunded loan commitments of $382 thousand at March
31, 2023 is separately classified on the balance sheet within Other Liabilities.
The following table presents the balance
and activity in the allowance for credit losses for unfunded loan commitments for the three months ended March 31, 2023
Schedule of Unfunded Commitments
($ in thousands) | |
Total Allowance for Credit
Losses - Unfunded
Commitments | |
Balance, December 31, 2022 | |
| — | |
Adjustment to allowance for unfunded commitments for adoption of ASU 2016-13 | |
| 398 | |
Provision for (release of) unfunded commitments | |
| (16 | ) |
Balance, March 31, 2023 | |
$ | 382 | |
|