Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. The classifications of loans and leases at September 30, 2024 December 31, 2023 (dollars in thousands) September 30, 2024 December 31, 2023 Commercial and industrial: Commercial $ 168,633 $ 152,640 Municipal 113,362 94,724 Commercial real estate: Non-owner occupied 382,097 337,671 Owner occupied 296,201 278,293 Construction 56,273 39,823 Consumer: Home equity installment 54,618 56,640 Home equity line of credit 57,387 52,348 Auto loans - Recourse 11,485 10,756 Auto loans - Non-recourse 83,905 112,595 Direct finance leases 28,591 33,601 Other 23,524 16,500 Residential: Real estate 490,442 465,010 Construction 29,208 36,536 Total 1,795,726 1,687,137 Less: Allowance for credit losses on loans (19,630 ) (18,806 ) Unearned lease revenue (1,940 ) (2,039 ) Loans and leases, net $ 1,774,156 $ 1,666,292 Total unamortized net costs and premiums included in loan totals were as follows: (dollars in thousands) September 30, 2024 December 31, 2023 Net unamortized fair value mark discount on acquired loans $ (5,261 ) $ (6,468 ) Net unamortized deferred loan origination costs 4,993 4,930 Total $ (268 ) $ (1,538 ) The Company excludes accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of September 30, 2024 December 31, 2023, Direct finance leases include the lease receivable and the guaranteed lease residual. Unearned lease revenue represents the difference between the lessor’s investment in the property and the gross investment in the lease. Unearned revenue is accrued over the life of the lease using the effective interest method. The Company services real estate loans for investors in the secondary mortgage market which are not September 30, 2024 December 31, 2023. September 30, 2024 December 31, 2023, During the second 2024, December 31, 2023, December 31, 2023, Non-accrual loans Non-accrual loans and loans past due over 89 September 30, 2024 December 31, 2023 (dollars in thousands) Non-accrual With No Allowance for Credit Loss Non-accrual With an Allowance for Credit Loss Total Non-accrual Loans Past Due Over 89 Days Still Accruing At September 30, 2024 Commercial and industrial: Commercial $ - $ 2,843 $ 2,843 $ - Municipal - - - - Commercial real estate: Non-owner occupied 426 - 426 - Owner occupied 2,531 84 2,615 - Consumer: Home equity installment 51 - 51 - Home equity line of credit 223 277 500 - Auto loans - Recourse - - - 8 Auto loans - Non-recourse 4 - 4 - Direct finance leases - - - 58 Other 20 - 20 - Residential: Real estate 619 - 619 - Total $ 3,874 $ 3,204 $ 7,078 $ 66 (dollars in thousands) Non-accrual With No Allowance for Credit Loss Non-accrual With an Allowance for Credit Loss Total Non-accrual Loans Past Due Over 89 Days Still Accruing At December 31, 2023 Commercial and industrial: Commercial $ 39 $ 16 $ 55 $ - Municipal - - - - Commercial real estate: Non-owner occupied 252 - 252 - Owner occupied 2,040 210 2,250 - Construction - - Consumer: Home equity installment 70 - 70 - Home equity line of credit 297 67 364 - Auto loans - Recourse - - - - Auto loans - Non-recourse 32 7 39 - Direct finance leases - - - 14 Other - - - - Residential: Real estate 278 - 278 - Total $ 3,008 $ 300 $ 3,308 $ 14 The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. C&I and CRE loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 90 90 Loan modifications to borrowers experiencing financial difficulty Occasionally, the Company modifies loans to borrowers in financial distress by providing interest rates below the market rate, temporary interest-only payment periods, term extensions at interest rates lower than the current market rate for new debt with similar risk and/or converting revolving credit lines to term loans. The Company typically does not In some cases, the Company provides multiple types of concessions on one one may The following tables present the amortized cost basis of loans at September 30, 2024 September 30, 2023 nine September 30, 2024 2023, Loans modified during the nine months ended: (dollars in thousands) September 30, 2024 Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension Interest Rate Reduction Total Class of Financing Receivable Commercial and industrial: Commercial $ - $ 50 $ - $ - $ - $ - 0.03 % Commercial real estate: Non-owner occupied - 285 - - - - 0.07 % Owner occupied - - 6,614 - - - 2.23 % Total $ - $ 335 $ 6,614 $ - $ - $ - Loans modified during the nine months ended: (dollars in thousands) September 30, 2023 Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension Interest Rate Reduction Total Class of Financing Receivable Commercial and industrial: Commercial $ - $ 46 $ - $ - $ - $ - 0.03 % Commercial real estate: Non-owner occupied - - 915 3,131 - - 1.30 % Owner occupied - - 128 - - - 0.04 % Total $ - $ 46 $ 1,043 $ 3,131 $ - $ - For the nine September 30, 2024, 12 The Company has not The following table represents the performance of such loans that have been modified in the last 12 September 30, 2024: (dollars in thousands) September 30, 2024 Current 30 - 59 Days Past Due 60 - 89 Days Past Due Greater Than 89 Days Past Due Total Past Due Commercial and industrial: Commercial $ 50 $ - $ - $ - $ - Commercial real estate: Non-owner occupied - - 285 - 285 Owner occupied 8,143 - - - - Total $ 8,193 $ - $ 285 $ - $ 285 No 12 September 30, 2023. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the nine September 30, 2024 2023 (dollars in thousands) September 30, 2024 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (Months) Commercial real estate: Owner occupied $ - - 12.0 (dollars in thousands) September 30, 2023 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (Months) Commercial real estate: Non-owner occupied $ - 6.13 % 8.8 Owner occupied - - 74.0 Total $ - 6.13 % 82.8 The following table provides the amortized cost basis of financing receivables that had a payment default during the nine September 30, 2024 twelve Loans modified within the previous twelve months that subsequently defaulted during the nine months ended: (dollars in thousands) September 30, 2024 Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Commercial real estate: Non-owner occupied $ - $ 285 $ - $ - Total $ - $ 285 $ - $ - There were no financing receivables that had a payment default during the nine September 30, 2023 twelve Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The allowance for credit losses (ACL) may may may Past due loans Loans are considered past due when the contractual principal and/or interest is not 30 59 two Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days September 30, 2024 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial: Commercial $ 29 $ - $ 2,843 $ 2,872 $ 165,761 $ 168,633 $ - Municipal - - - - 113,362 113,362 Commercial real estate: Non-owner occupied - 285 426 711 381,386 382,097 - Owner occupied 2,383 - 2,615 4,998 291,203 296,201 - Construction - - - - 56,273 56,273 - Consumer: Home equity installment 265 - 51 316 54,302 54,618 - Home equity line of credit 37 15 500 552 56,835 57,387 - Auto loans - Recourse 43 2 8 53 11,432 11,485 8 Auto loans - Non-recourse 429 75 4 508 83,397 83,905 - Direct finance leases 102 - 58 160 26,491 26,651 (2) 58 Other 5 4 20 29 23,495 23,524 - Residential: Real estate - 274 619 893 489,549 490,442 - Construction - - - - 29,208 29,208 - Total $ 3,293 $ 655 $ 7,144 $ 11,092 $ 1,782,694 $ 1,793,786 $ 66 ( 1 ( 2 ( 3 Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2023 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial Commercial $ 77 $ 16 $ 55 $ 148 $ 152,492 $ 152,640 $ - Municipal - - - - 94,724 94,724 Commercial real estate: Non-owner occupied 85 65 252 402 337,269 337,671 - Owner occupied 1,875 104 2,250 4,229 274,064 278,293 - Construction - - - - 39,823 39,823 - Consumer: Home equity installment 105 150 70 325 56,315 56,640 - Home equity line of credit 60 92 364 516 51,832 52,348 - Auto loans - Recourse 86 1 - 87 10,669 10,756 - Auto loans - Non-recourse 417 48 39 504 112,091 112,595 - Direct finance leases 548 - 14 562 31,000 31,562 (2) 14 Other 30 4 - 34 16,466 16,500 - Residential: Real estate 42 682 278 1,002 464,008 465,010 - Construction - - - - 36,536 36,536 - Total $ 3,325 $ 1,162 $ 3,322 $ 7,809 $ 1,677,289 $ 1,685,098 $ 14 ( 1 ( 2 ( 3 Credit Quality Indicators Management is responsible for conducting the Company’s credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans. Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information, and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed. The credit risk grades may may Commercial and industrial and commercial real estate The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the C&I and CRE portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the C&I and CRE portfolios. These loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed. The credit risk grades may The following is a description of each risk rating category the Company uses to classify each of its C&I and CRE loans: Pass Loans in this category have an acceptable level of risk and are graded in a range of one no one five Special Mention Loans in this category are graded a six may not may no may not Substandard Loans in this category are graded a seven may may may not may 90 Doubtful Loans in this category are graded an eight 50% may eight Consumer and residential The consumer and residential loan segments are regarded as homogeneous loan pools and as such are not 90 not The following table presents loans including $5.0 million and $4.9 million of deferred costs, segregated by class and vintage, categorized into the appropriate credit quality indicator category as of September 30, 2024 December 31, 2023 Commercial credit exposure Credit risk profile by creditworthiness category As of September 30, 2024 (dollars in thousands) September 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial and industrial Risk Rating Pass $ 26,038 $ 27,376 $ 12,323 $ 13,091 $ 3,604 $ 15,431 $ 62,747 $ - $ 160,610 Special Mention - - 70 150 - - - - 220 Substandard - 38 366 6,247 13 1,041 98 - 7,803 Doubtful - - - - - - - - - Total commercial and industrial $ 26,038 $ 27,414 $ 12,759 $ 19,488 $ 3,617 $ 16,472 $ 62,845 $ - $ 168,633 Current period gross write-offs $ - $ - $ - $ 30 $ 21 $ 202 $ - $ - $ 253 Commercial and industrial - municipal Risk Rating Pass $ 22,439 $ 24,442 $ 14,729 $ 21,682 $ 12,806 $ 17,264 $ - $ - $ 113,362 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial and industrial - municipal $ 22,439 $ 24,442 $ 14,729 $ 21,682 $ 12,806 $ 17,264 $ - $ - $ 113,362 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - non-owner occupied Risk Rating Pass $ 64,523 $ 34,847 $ 59,010 $ 69,135 $ 45,837 $ 92,976 $ 7,770 $ - $ 374,098 Special Mention - - - - - - - - - Substandard - - - 689 97 7,213 - - 7,999 Doubtful - - - - - - - - - Total commercial real estate - non-owner occupied $ 64,523 $ 34,847 $ 59,010 $ 69,824 $ 45,934 $ 100,189 $ 7,770 $ - $ 382,097 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - owner occupied Risk Rating Pass $ 36,214 $ 32,684 $ 32,171 $ 42,201 $ 21,863 $ 96,223 $ 15,727 $ - $ 277,083 Special Mention - - - 463 - - - - 463 Substandard - - 6,751 452 515 10,794 143 - 18,655 Doubtful - - - - - - - - - Total commercial real estate - owner occupied $ 36,214 $ 32,684 $ 38,922 $ 43,116 $ 22,378 $ 107,017 $ 15,870 $ - $ 296,201 Current period gross write-offs $ - $ - $ - $ - $ - $ 132 $ - $ - $ 132 Commercial real estate - construction Risk Rating Pass $ 14,078 $ 23,970 $ 15,831 $ - $ - $ 394 $ 2,000 $ - $ 56,273 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial real estate - construction $ 14,078 $ 23,970 $ 15,831 $ - $ - $ 394 $ 2,000 $ - $ 56,273 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity As of September 30, 2024 (dollars in thousands) September 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Home equity installment Payment performance Performing $ 5,301 $ 7,910 $ 16,110 $ 8,074 $ 6,715 $ 10,457 $ - $ - $ 54,567 Non-performing - - - - - 51 - - 51 Total home equity installment $ 5,301 $ 7,910 $ 16,110 $ 8,074 $ 6,715 $ 10,508 $ - $ - $ 54,618 Current period gross write-offs $ - $ - $ - $ - $ - $ 7 $ - $ - $ 7 Home equity line of credit Payment performance Performing $ - $ - $ - $ - $ - $ - $ 46,592 $ 10,295 $ 56,887 Non-performing - - - - - - 500 - 500 Total home equity line of credit $ - $ - $ - $ - $ - $ - $ 47,092 $ 10,295 $ 57,387 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ 13 $ 13 Auto loans - recourse Payment performance Performing $ 4,089 $ 2,498 $ 1,338 $ 1,939 $ 1,199 $ 414 $ - $ - $ 11,477 Non-performing - 8 - - - - - - 8 Total auto loans - recourse $ 4,089 $ 2,506 $ 1,338 $ 1,939 $ 1,199 $ 414 $ - $ - $ 11,485 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Auto loans - non-recourse Payment performance Performing $ 4,554 $ 30,413 $ 31,146 $ 11,628 $ 4,562 $ 1,598 $ - $ - $ 83,901 Non-performing - - - - - 4 - - 4 Total auto loans - non-recourse $ 4,554 $ 30,413 $ 31,146 $ 11,628 $ 4,562 $ 1,602 $ - $ - $ 83,905 Current period gross write-offs $ - $ 16 $ 47 $ 23 $ 6 $ 13 $ - $ - $ 105 Direct finance leases (1) Payment performance Performing $ 6,337 $ 7,713 $ 8,264 $ 3,995 $ 259 $ 25 $ - $ - $ 26,593 Non-performing - - - 58 - - - - 58 Total direct finance leases $ 6,337 $ 7,713 $ 8,264 $ 4,053 $ 259 $ 25 $ - $ - $ 26,651 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer - other Payment performance Performing $ 10,806 $ 6,395 $ 2,191 $ 1,176 $ 455 $ 666 $ 1,815 $ - $ 23,504 Non-performing - - 20 - - - - - 20 Total consumer - other $ 10,806 $ 6,395 $ 2,211 $ 1,176 $ 455 $ 666 $ 1,815 $ - $ 23,524 Current period gross write-offs $ 21 $ 80 $ 20 $ 27 $ 5 $ 34 $ - $ - $ 187 Residential real estate Payment performance Performing $ 27,383 $ 53,157 $ 88,117 $ 139,021 $ 52,430 $ 129,715 $ - $ - $ 489,823 Non-performing - 315 - - - 304 - - 619 Total residential real estate $ 27,383 $ 53,472 $ 88,117 $ 139,021 $ 52,430 $ 130,019 $ - $ - $ 490,442 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential - construction Payment performance Performing $ 9,997 $ 13,958 $ 2,941 $ 2,312 $ - $ - $ - $ - $ 29,208 Non-performing - - - - - - - - - Total residential - construction $ 9,997 $ 13,958 $ 2,941 $ 2,312 $ - $ - $ - $ - $ 29,208 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - ( 1 Commercial credit exposure Credit risk profile by creditworthiness category As of December 31, 2023 (dollars in thousands) December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial and industrial Risk Rating Pass $ 30,328 $ 19,115 $ 22,820 $ 4,848 $ 6,922 $ 12,156 $ 53,758 $ - $ 149,947 Special Mention - 597 288 - - 55 30 - 970 Substandard - - 16 20 53 324 1,310 - 1,723 Doubtful - - - - - - - - - Total commercial and industrial $ 30,328 $ 19,712 $ 23,124 $ 4,868 $ 6,975 $ 12,535 $ 55,098 $ - $ 152,640 Current period gross write-offs $ - $ - $ 300 $ 20 $ - $ - $ - $ - $ 320 Commercial and industrial - municipal Risk Rating Pass $ 27,016 $ 13,933 $ 21,241 $ 13,137 $ 1,445 $ 17,952 $ - $ - $ 94,724 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial and industrial - municipal $ 27,016 $ 13,933 $ 21,241 $ 13,137 $ 1,445 $ 17,952 $ - $ - $ 94,724 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - non-owner occupied Risk Rating Pass $ 34,349 $ 57,874 $ 72,806 $ 48,088 $ 16,245 $ 89,117 $ 7,168 $ - $ 325,647 Special Mention - - 1,044 304 - 1,375 - - 2,723 Substandard - 65 1,063 129 566 7,478 - - 9,301 Doubtful - - - - - - - - - Total commercial real estate - non-owner occupied $ 34,349 $ 57,939 $ 74,913 $ 48,521 $ 16,811 $ 97,970 $ 7,168 $ - $ 337,671 Current period gross write-offs $ - $ - $ - $ - $ - $ 32 $ - $ - $ 32 Commercial real estate - owner occupied Risk Rating Pass $ 29,182 $ 38,767 $ 45,643 $ 23,980 $ 25,781 $ 85,167 $ 9,342 $ - $ 257,862 Special Mention - 199 554 - - - 125 - 878 Substandard 7,029 379 560 - 10,991 594 - 19,553 Doubtful - - - - - - - - - Total commercial real estate - owner occupied $ 29,182 $ 45,995 $ 46,576 $ 24,540 $ 25,781 $ 96,158 $ 10,061 $ - $ 278,293 Current period gross write-offs $ - $ - $ - $ - $ - $ 59 $ - $ - $ 59 Commercial real estate - construction Risk Rating Pass $ 15,075 $ 17,358 $ 852 $ - $ - $ 3,739 $ 2,799 $ - $ 39,823 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial real estate - construction $ 15,075 $ 17,358 $ 852 $ - $ - $ 3,739 $ 2,799 $ - $ 39,823 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity As of December 31, 2023 (dollars in thousands) December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Home equity installment Payment performance Performing $ 8,581 $ 17,890 $ 9,487 $ 7,988 $ 3,832 $ 8,792 $ - $ - $ 56,570 Non-performing - - - - - 70 - - 70 Total home equity installment $ 8,581 $ 17,890 $ 9,487 $ 7,988 $ 3,832 $ 8,862 $ - $ - $ 56,640 Current period gross write-offs $ - $ - $ - $ - $ - $ 26 $ - $ - $ 26 Home equity line of credit Payment performance Performing $ - $ - $ - $ - $ - $ - $ 40,939 $ 11,045 $ 51,984 Non-performing - - - - - - 364 - 364 Total home equity line of credit $ - $ - $ - $ - $ - $ - $ 41,303 $ 11,045 $ 52,348 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Auto loans - recourse Payment performance Performing $ 3,120 $ 1,957 $ 2,834 $ 1,926 $ 765 $ 154 $ - $ - $ 10,756 Non-performing - - - - - - - - - Total auto loans - recourse $ 3,120 $ 1,957 $ 2,834 $ 1,926 $ 765 $ 154 $ - $ - $ 10,756 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Auto loans - non-recourse Payment performance Performing $ 39,673 $ 42,059 $ 17,314 $ 8,162 $ 3,999 $ 1,349 $ - $ - $ 112,556 Non-performing - - 3 17 - 19 - - 39 Total auto loans - non-recourse $ 39,673 $ 42,059 $ 17,317 $ 8,179 $ 3,999 $ 1,368 $ - $ - $ 112,595 Current period gross write-offs $ 3 $ 7 $ 105 $ 36 $ 15 $ - $ - $ - $ 166 Direct finance leases (2) Payment performance Performing $ 11,569 $ 10,728 $ 7,508 $ 1,660 $ 83 $ - $ - $ - $ 31,548 Non-performing - - 14 - - - - - 14 Total direct finance leases $ 11,569 $ 10,728 $ 7,522 $ 1,660 $ 83 $ - $ - $ - $ 31,562 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer - other Payment performance Performing $ 8,127 $ 3,266 $ 1,963 $ 705 $ 368 $ 762 $ 1,309 $ - $ 16,500 Non-performing - - - - - - - - - Total consumer - other $ 8,127 $ 3,266 $ 1,963 $ 705 $ 368 $ 762 $ 1,309 $ - $ 16,500 Current period gross write-offs $ 125 $ 77 $ 16 $ 7 $ 17 $ 29 $ - $ - $ 271 Residential real estate Payment performance Performing $ 53,604 $ 80,516 $ 137,620 $ 51,710 $ 29,859 $ 111,423 $ - $ - $ 464,732 Non-performing - - - - - 278 - - 278 Total residential real estate $ 53,604 $ 80,516 $ 137,620 $ 51,710 $ 29,859 $ 111,701 $ - $ - $ 465,010 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential - construction Payment performance Performing $ 10,733 $ 13,084 $ 9,267 $ 2,675 $ 343 $ 434 $ - $ - $ 36,536 Non-performing - - - - - - - - - Total residential - construction $ 10,733 $ 13,084 $ 9,267 $ 2,675 $ 343 $ 434 $ - $ - $ 36,536 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - ( 2 Collateral dependent loans Loans that do not September 30, 2024 December 31, 2023: (dollars in thousands) Real Estate Other Total Collateral-Dependent Loans At September 30, 2024 Commercial and industrial: Commercial $ - $ 2,843 $ 2,843 Commercial real estate: Non-owner occupied 426 - 426 Owner occupied 2,615 - 2,615 Consumer: Home equity installment 51 - 51 Home equity line of credit 500 - 500 Auto loans - Non-recourse - 4 4 Other 20 - 20 Residential: Real estate 619 - 619 Total $ 4,231 $ 2,847 $ 7,078 (dollars in thousands) Real Estate Other Total Collateral-Dependent Loans At December 31, 2023 Commercial and industrial: Commercial $ - $ 55 $ 55 Commercial real estate: Non-owner occupied 252 - 252 Owner occupied 2,250 - 2,250 Consumer: Home equity installment 70 - 70 Home equity line of credit 364 - 364 Auto loans - Non-recourse - 39 39 Residential: Real estate 278 - 278 Total $ 3,214 $ 94 $ 3,308 Allowance for credit losses Management continually evaluates the credit quality of the Company’s loan portfolio and performs a formal review of the adequacy of the allowance for credit losses (ACL) on a quarterly basis. The allowance reflects management’s best estimate of the amount of credit losses in the loan portfolio. Information related to the change in the allowance for credit losses on loans and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows: As of and for the nine months ended September 30, 2024 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Credit Losses: Beginning balance $ 1,850 $ 8,835 $ 2,391 $ 5,694 $ 36 $ 18,806 Charge-offs (253 ) (132 ) (312 ) - - (697 ) Recoveries 7 335 59 45 - 446 Provision (benefit) for credit losses 940 31 208 (100 ) (4 ) 1,075 Ending balance $ 2,544 $ 9,069 $ 2,346 $ 5,639 $ 32 $ 19,630 As of and for the three months ended September 30, 2024 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Credit Losses: Beginning balance $ 2,181 $ 8,687 $ 2,368 $ 5,726 $ 13 $ 18,975 Charge-offs (100 ) (1 ) (119 ) - - (220 ) Recoveries 2 181 17 - - 200 Provision (benefit) for credit losses 461 202 80 (87 ) 19 675 Ending balance $ 2,544 $ 9,069 $ 2,346 $ 5,639 $ 32 $ 19,630 As of and for the nine months ended September 30, 2023 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Credit Losses: Beginning balance $ 2,924 $ 7,162 $ 2,827 $ 4,169 $ 67 $ 17,149 Impact of adopting ASC 326 278 756 (547 ) 198 (67 ) 618 Initial allowance on loans purchased with credit deterioration - 126 - - - 126 Charge-offs (320 ) (92 ) (349 ) - - (761 ) Recoveries 23 44 148 30 - 245 Provision (benefit) for credit losses (1,039 ) 803 56 1,536 24 1,380 Ending balance $ 1,866 $ 8,799 $ 2,135 $ 5,933 $ 24 $ 18,757 As of and for the three months ended September 30, 2023 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Credit Losses: Beginning balance $ 2,361 $ 8,578 $ 2,514 $ 4,847 $ 50 $ 18,350 Charge-offs - (59 ) (105 ) - - (164 ) Recoveries 1 3 22 20 - 46 Provision (benefit) for credit losses (496 ) 277 (296 ) 1,066 (26 ) 525 Ending balance $ 1,866 $ 8,799 $ 2,135 $ 5,933 $ 24 $ 18,757 Unfunded commitments In accordance with ASC Topic 326, not The Company's allowance for credit losses on unfunded commitments is recognized as a liability on the consolidated balance sheets, with adjustments to the reserve recognized in the provision for credit losses on unfunded commitments on the consolidated statements of income. The Company's activity in the allowance for credit losses on unfunded commitments for the period was as follows: (dollars in thousands) For the Nine Months Ended September 30, 2024 For the Nine Months Ended September 30, 2023 Beginning balance $ 944 $ 49 Impact of adopting ASC 326 - 1,060 Provision (benefit) for credit losses 225 (100 ) Ending balance $ 1,169 $ 1,009 Direct finance leases The Company originates direct finance leases through three September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023 September 30, 2024, not The undiscounted cash flows to be received on an annual basis for the direct finance leases are as follows: (dollars in thousands) Amount 2024 $ 2,811 2025 14,174 2026 7,082 2027 3,666 2028 286 2029 and thereafter 104 Total future minimum lease payments receivable 28,123 Less: Unearned income (1,940 ) Undiscounted cash flows to be received $ 26,183 |