Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. The classifications of loans and leases at March 31, 2024 December 31, 2023 (dollars in thousands) March 31, 2024 December 31, 2023 Commercial and industrial: Commercial $ 152,953 $ 152,640 Municipal 113,058 94,724 Commercial real estate: Non-owner occupied 305,962 311,565 Owner occupied 299,394 304,399 Construction 48,473 39,823 Consumer: Home equity installment 55,626 56,640 Home equity line of credit 52,564 52,348 Auto loans - Recourse 10,980 10,756 Auto loans - Non-recourse 102,622 112,595 Direct finance leases 32,544 33,601 Other 16,045 16,500 Residential: Real estate 475,712 465,010 Construction 33,174 36,536 Total 1,699,107 1,687,137 Less: Allowance for credit losses on loans (18,886 ) (18,806 ) Unearned lease revenue (2,079 ) (2,039 ) Loans and leases, net $ 1,678,142 $ 1,666,292 Total unamortized net costs and premiums included in loan totals were as follows: (dollars in thousands) March 31, 2024 December 31, 2023 Net unamortized fair value mark discount on acquired loans $ (6,015 ) $ (6,468 ) Net unamortized deferred loan origination costs 4,966 4,930 Total $ (1,049 ) $ (1,538 ) The Company excludes accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of March 31, 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 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Non-accrual loans Non-accrual loans and loans past due over 89 March 31, 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 March 31, 2024 Commercial and industrial: Commercial $ - $ 55 $ 55 $ - Municipal - - - - Commercial real estate: Non-owner occupied 525 - 525 - Owner occupied 1,578 457 2,035 - Consumer: Home equity installment 79 - 79 - Home equity line of credit 299 67 366 - Auto loans - Recourse - - - - Auto loans - Non-recourse 27 8 35 - Direct finance leases - - - 12 Other - 24 24 - Residential: Real estate 438 - 438 - Total $ 2,946 $ 611 $ 3,557 $ 12 (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 March 31, 2024 March 31, 2023 three March 31, 2024 2023 Loans modified during the three months ended: (dollars in thousands) March 31, 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 real estate: Non-owner occupied $ - $ - $ 849 $ - $ - $ - 0.28 % Owner occupied - - 6,533 - - - 2.18 % Total $ - $ - $ 7,382 $ - $ - $ - Loans modified during the three months ended: (dollars in thousands) March 31, 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 real estate: Non-owner occupied $ - $ - $ 65 $ 3,261 $ - $ - 1.07 % Total $ - $ - $ 65 $ 3,261 $ - $ - The Company has not Loans modified to borrowers experiencing financial difficulty are closely monitored to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the previous 12 (dollars in thousands) March 31, 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 $ 15 $ - $ - $ - $ - Commercial real estate: Non-owner occupied 849 - - - - Owner occupied 8,191 - - - - Total $ 9,055 $ - $ - $ - $ - (dollars in thousands) March 31, 2023 Current 30 - 59 Days Past Due 60 - 89 Days Past Due Greater Than 89 Days Past Due Total Past Due Commercial real estate: Non-owner occupied $ 3,326 $ - $ - $ - $ - Total $ 3,326 $ - $ - $ - $ - The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three March 31, 2024 2023 (dollars in thousands) March 31, 2024 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (Months) Commercial real estate: Non-owner occupied $ - - % 3.0 Owner occupied - - 5.0 (dollars in thousands) March 31, 2023 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (Months) Commercial real estate: Non-owner occupied $ - 6.13 % 6.0 There were no financing receivables that had a payment default during the three March 31, 2024 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 March 31, 2024 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial: Commercial $ 145 - 55 $ 200 $ 152,753 $ 152,953 $ - Municipal - - - - 113,058 113,058 Commercial real estate: Non-owner occupied - 285 525 810 305,152 305,962 - Owner occupied 72 70 2,035 2,177 297,217 299,394 - Construction - - - - 48,473 48,473 - Consumer: Home equity installment 164 - 79 243 55,383 55,626 - Home equity line of credit 89 - 366 455 52,109 52,564 - Auto loans - Recourse 46 - - 46 10,934 10,980 - Auto loans - Non-recourse 519 13 35 567 102,055 102,622 - Direct finance leases 211 - 12 223 30,242 30,465 (2) 12 Other 118 9 24 151 15,894 16,045 - Residential: Real estate - 430 438 868 474,844 475,712 - Construction - - - - 33,174 33,174 - Total $ 1,364 $ 807 $ 3,569 $ 5,740 $ 1,691,288 $ 1,697,028 $ 12 ( 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 65 252 402 311,163 311,565 - Owner occupied 1,875 104 2,250 4,229 300,170 304,399 - 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 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 March 31, 2024 December 31, 2023 Commercial credit exposure Credit risk profile by creditworthiness category As of March 31, 2024 (dollars in thousands) March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial and industrial Risk Rating Pass $ 5,443 $ 29,235 18,316 15,459 4,978 18,956 52,436 $ - $ 144,823 Special Mention - - 139 193 - - - - 332 Substandard - - 259 6,338 17 353 831 - 7,798 Doubtful - - - - - - - - - Total commercial and industrial $ 5,443 $ 29,235 $ 18,714 $ 21,990 $ 4,995 $ 19,309 $ 53,267 $ - $ 152,953 Current period gross write-offs $ - $ - $ - $ 30 $ - $ 84 $ - $ - $ 114 Commercial and industrial - municipal Risk Rating Pass $ 16,861 $ 26,778 $ 15,758 $ 21,783 $ 12,996 $ 18,882 $ - $ - $ 113,058 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial and industrial - municipal $ 16,861 $ 26,778 $ 15,758 $ 21,783 $ 12,996 $ 18,882 $ - $ - $ 113,058 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - non-owner occupied Risk Rating Pass $ 3,814 $ 33,675 38,013 70,006 41,912 102,540 $ 7,269 $ - $ 297,229 Special Mention - - - - - - - - - Substandard - - - 688 125 7,920 - - 8,733 Doubtful - - - - - - - - - Total commercial real estate - non-owner occupied $ 3,814 $ 33,675 $ 38,013 $ 70,694 $ 42,037 $ 110,460 $ 7,269 $ - $ 305,962 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - owner occupied Risk Rating Pass $ 1,922 29,866 58,559 45,279 28,676 104,280 10,805 $ - $ 279,387 Special Mention - - - 486 - - - - 486 Substandard - 6,740 512 527 11,156 586 - 19,521 Doubtful - - - - - - - - - Total commercial real estate - owner occupied $ 1,922 $ 29,866 $ 65,299 $ 46,277 $ 29,203 $ 115,436 $ 11,391 $ - $ 299,394 Current period gross write-offs $ - $ - $ - $ - $ - $ 5 $ - $ - $ 5 Commercial real estate - construction Risk Rating Pass $ 4,846 $ 21,758 $ 17,216 $ - $ - $ 3,689 $ 964 $ - $ 48,473 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial real estate - construction $ 4,846 $ 21,758 $ 17,216 $ - $ - $ 3,689 $ 964 $ - $ 48,473 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity As of March 31, 2024 (dollars in thousands) March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Home equity installment Payment performance Performing $ 1,416 $ 8,372 $ 17,214 $ 9,081 $ 7,501 $ 11,963 $ - $ - $ 55,547 Non-performing - - - - - 79 - - 79 Total home equity installment $ 1,416 $ 8,372 $ 17,214 $ 9,081 $ 7,501 $ 12,042 $ - $ - $ 55,626 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Home equity line of credit Payment performance Performing $ - $ - $ - $ - $ - $ - $ 41,497 $ 10,701 $ 52,198 Non-performing - - - - - - 366 - 366 Total home equity line of credit $ - $ - $ - $ - $ - $ - $ 41,863 $ 10,701 $ 52,564 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Auto loans - recourse Payment performance Performing $ 1,236 $ 3,029 $ 1,779 $ 2,540 $ 1,678 $ 718 $ - $ - $ 10,980 Non-performing - - - - - - - - - Total auto loans - recourse $ 1,236 $ 3,029 $ 1,779 $ 2,540 $ 1,678 $ 718 $ - $ - $ 10,980 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Auto loans - non-recourse Payment performance Performing $ 1,375 $ 36,683 $ 38,441 $ 15,457 $ 6,823 $ 3,808 $ - $ - $ 102,587 Non-performing - - 12 4 - 19 - - 35 Total auto loans - non-recourse $ 1,375 $ 36,683 $ 38,453 $ 15,461 $ 6,823 $ 3,827 $ - $ - $ 102,622 Current period gross write-offs $ - $ 15 $ 29 $ 6 $ 3 $ - $ - $ - $ 53 Direct finance leases (1) Payment performance Performing $ 2,852 $ 10,252 $ 9,776 $ 6,568 $ 935 $ 70 $ - $ - $ 30,453 Non-performing - - - 12 - - - - 12 Total direct finance leases $ 2,852 $ 10,252 $ 9,776 $ 6,580 $ 935 $ 70 $ - $ - $ 30,465 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer - other Payment performance Performing $ 1,422 $ 7,244 $ 2,767 $ 1,770 $ 592 $ 898 $ 1,328 $ - $ 16,021 Non-performing - - 24 - - - - - 24 Total consumer - other $ 1,422 $ 7,244 $ 2,791 $ 1,770 $ 592 $ 898 $ 1,328 $ - $ 16,045 Current period gross write-offs $ 1 $ 15 $ 10 $ 10 $ 2 $ 16 $ - $ - $ 54 Residential real estate Payment performance Performing $ 9,706 $ 52,897 $ 84,935 $ 139,372 $ 51,022 $ 137,342 $ - $ - $ 475,274 Non-performing - - - - - 438 - - 438 Total residential real estate $ 9,706 $ 52,897 $ 84,935 $ 139,372 $ 51,022 $ 137,780 $ - $ - $ 475,712 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential - construction Payment performance Performing $ 2,212 $ 12,642 $ 8,601 $ 6,420 $ 2,665 $ 634 $ - $ - $ 33,174 Non-performing - - - - - - - - - Total residential - construction $ 2,212 $ 12,642 $ 8,601 $ 6,420 $ 2,665 $ 634 $ - $ - $ 33,174 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 $ 34,103 $ 37,508 71,209 42,692 17,390 89,860 $ 6,779 $ - $ 299,541 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 $ 34,103 $ 37,573 $ 73,316 $ 43,125 $ 17,956 $ 98,713 $ 6,779 $ - $ 311,565 Current period gross write-offs $ - $ - $ - $ - $ - $ 32 $ - $ - $ 32 Commercial real estate - owner occupied Risk Rating Pass $ 29,429 59,132 47,240 29,377 24,636 84,423 9,731 $ - $ 283,968 Special Mention - 199 554 - - - 125 - 878 Substandard 7,029 379 560 - 10,991 594 - 19,553 Doubtful - - - - - - - - - Total commercial real estate - owner occupied $ 29,429 $ 66,360 $ 48,173 $ 29,937 $ 24,636 $ 95,414 $ 10,450 $ - $ 304,399 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 (1) 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 March 31, 2024 December 31, 2023: (dollars in thousands) Real Estate Other Total Collateral-Dependent Loans At March 31, 2024 Commercial and industrial: Commercial $ - $ 55 $ 55 Commercial real estate: Non-owner occupied 525 - 525 Owner occupied 2,035 - 2,035 Consumer: Home equity installment 79 - 79 Home equity line of credit 366 - 366 Auto loans - Non-recourse - 35 35 Other 24 - 24 Residential: Real estate 438 - 438 Total $ 3,467 $ 90 $ 3,557 (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 three months ended March 31, 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 (114 ) (5 ) (107 ) - - (226 ) Recoveries 2 155 22 2 - 181 Provision (benefit) for credit losses 166 (161 ) (43 ) 150 13 125 Ending balance $ 1,904 $ 8,824 $ 2,263 $ 5,846 $ 49 $ 18,886 As of and for the three months ended March 31, 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 (170 ) (32 ) (101 ) - - (303 ) Recoveries 20 39 72 9 - 140 Provision (benefit) for loan losses (502 ) 106 197 307 72 180 Ending balance $ 2,550 $ 8,157 $ 2,448 $ 4,683 $ 72 $ 17,910 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 Three Months Ended March 31, 2024 For the Three Months Ended March 31, 2023 Beginning balance $ 944 $ 49 Impact of adopting ASC 326 - 1,060 Provision (benefit) for credit losses (50 ) 225 Ending balance $ 894 $ 1,334 Direct finance leases The Company originates direct finance leases through three e amortized cost of the C March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 the amortized cost of di March 31, 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 $ 10,128 2025 13,162 2026 6,410 2027 2,271 2028 95 2029 and thereafter - Total future minimum lease payments receivable 32,066 Less: Unearned income (2,079 ) Undiscounted cash flows to be received $ 29,987 |