Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. The classifications of loans and leases at June 30, 2024 December 31, 2023 (dollars in thousands) June 30, 2024 December 31, 2023 Commercial and industrial: Commercial $ 154,158 $ 152,640 Municipal 107,219 94,724 Commercial real estate: Non-owner occupied 355,024 337,671 Owner occupied 274,762 278,293 Construction 53,959 39,823 Consumer: Home equity installment 54,558 56,640 Home equity line of credit 57,188 52,348 Auto loans - Recourse 11,014 10,756 Auto loans - Non-recourse 92,756 112,595 Direct finance leases 31,125 33,601 Other 23,499 16,500 Residential: Real estate 481,966 465,010 Construction 32,645 36,536 Total 1,729,873 1,687,137 Less: Allowance for credit losses on loans (18,975 ) (18,806 ) Unearned lease revenue (2,055 ) (2,039 ) Loans and leases, net $ 1,708,843 $ 1,666,292 Total unamortized net costs and premiums included in loan totals were as follows: (dollars in thousands) June 30, 2024 December 31, 2023 Net unamortized fair value mark discount on acquired loans $ (5,598 ) $ (6,468 ) Net unamortized deferred loan origination costs 4,979 4,930 Total $ (619 ) $ (1,538 ) The Company excludes accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of June 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 June 30, 2024 December 31, 2023 June 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 June 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 June 30, 2024 Commercial and industrial: Commercial $ - $ 2,685 $ 2,685 $ - Municipal - - - - Commercial real estate: Non-owner occupied 724 - 724 - Owner occupied 2,320 84 2,404 - Consumer: Home equity installment 56 - 56 - Home equity line of credit 402 - 402 - Auto loans - Recourse - - - - Auto loans - Non-recourse 5 - 5 - Direct finance leases - - - 34 Other 20 - 20 - Residential: Real estate 593 - 593 - Total $ 4,120 $ 2,769 $ 6,889 $ 34 (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 June 30, 2024 June 30, 2023 six June 30, 2024 2023, Loans modified during the six months ended: (dollars in thousands) June 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 - - - - 0.08 % Owner occupied - - 6,546 - - - 2.38 % Total $ - $ 335 $ 6,546 $ - $ - $ - Loans modified during the six months ended: (dollars in thousands) June 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 3,191 - - 1.30 % Total $ - $ 46 $ 915 $ 3,191 $ - $ - The Company has not Loans modified to borrowers experiencing financial difficulty are closely monitored to understand the effectiveness of its modification efforts. None 12 June 30, 2024. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six June 30, 2024 2023 (dollars in thousands) June 30, 2024 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (Months) Commercial real estate: Owner occupied $ - - 5.0 (dollars in thousands) June 30, 2023 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (Months) Commercial real estate: Non-owner occupied $ - 6.13 % 8.8 There were no financing receivables that had a payment default during the three six June 30, 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 June 30, 2024 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial: Commercial $ - $ 99 $ 2,685 $ 2,784 $ 151,374 $ 154,158 $ - Municipal - - - - 107,219 107,219 Commercial real estate: Non-owner occupied - - 724 724 354,300 355,024 - Owner occupied 427 71 2,404 2,902 271,860 274,762 - Construction - - - - 53,959 53,959 - Consumer: Home equity installment 191 - 56 247 54,311 54,558 - Home equity line of credit 84 245 402 731 56,457 57,188 - Auto loans - Recourse 101 - - 101 10,913 11,014 - Auto loans - Non-recourse 271 24 5 300 92,456 92,756 - Direct finance leases 79 - 34 113 28,957 29,070 (2) 34 Other 132 34 20 186 23,313 23,499 - Residential: Real estate 221 187 593 1,001 480,965 481,966 - Construction - - - - 32,645 32,645 - Total $ 1,506 $ 660 $ 6,923 $ 9,089 $ 1,718,729 $ 1,727,818 $ 34 ( 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 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 June 30, 2024 December 31, 2023 Commercial credit exposure Credit risk profile by creditworthiness category As of June 30, 2024 (dollars in thousands) June 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 $ 14,097 $ 28,369 $ 13,928 $ 14,021 $ 4,295 $ 16,374 $ 54,980 $ - $ 146,064 Special Mention - - 129 172 - - - - 301 Substandard - - 230 6,298 15 1,170 80 - 7,793 Doubtful - - - - - - - - - Total commercial and industrial $ 14,097 $ 28,369 $ 14,287 $ 20,491 $ 4,310 $ 17,544 $ 55,060 $ - $ 154,158 Current period gross write-offs $ - $ - $ - $ 30 $ 21 $ 102 $ - $ - $ 153 Commercial and industrial - municipal Risk Rating Pass $ 16,360 $ 24,507 $ 14,002 $ 21,914 $ 12,904 $ 17,532 $ - $ - $ 107,219 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial and industrial - municipal $ 16,360 $ 24,507 $ 14,002 $ 21,914 $ 12,904 $ 17,532 $ - $ - $ 107,219 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - non-owner occupied Risk Rating Pass $ 39,748 $ 34,903 $ 57,518 $ 70,061 $ 46,515 $ 90,527 $ 7,550 $ - $ 346,822 Special Mention - - - - - - - - - Substandard - - - 692 102 7,408 - - 8,202 Doubtful - - - - - - - - - Total commercial real estate - non-owner occupied $ 39,748 $ 34,903 $ 57,518 $ 70,753 $ 46,617 $ 97,935 $ 7,550 $ - $ 355,024 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - owner occupied Risk Rating Pass $ 7,824 $ 30,314 $ 32,710 $ 42,965 $ 22,591 $ 103,250 $ 16,161 $ - $ 255,815 Special Mention - - - 475 - - - - 475 Substandard - - 6,687 457 521 10,807 - - 18,472 Doubtful - - - - - - - - - Total commercial real estate - owner occupied $ 7,824 $ 30,314 $ 39,397 $ 43,897 $ 23,112 $ 114,057 $ 16,161 $ - $ 274,762 Current period gross write-offs $ - $ - $ - $ - $ - $ 131 $ - $ - $ 131 Commercial real estate - construction Risk Rating Pass $ 7,122 $ 24,960 $ 17,794 $ - $ - $ 3,689 $ 394 $ - $ 53,959 Special Mention - - - - - - - - - Substandard - - - - - - - - - Doubtful - - - - - - - - - Total commercial real estate - construction $ 7,122 $ 24,960 $ 17,794 $ - $ - $ 3,689 $ 394 $ - $ 53,959 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity As of June 30, 2024 (dollars in thousands) June 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 $ 2,713 $ 8,140 $ 16,658 $ 8,608 $ 7,093 $ 11,290 $ - $ - $ 54,502 Non-performing - - - - - 56 - - 56 Total home equity installment $ 2,713 $ 8,140 $ 16,658 $ 8,608 $ 7,093 $ 11,346 $ - $ - $ 54,558 Current period gross write-offs $ - $ - $ - $ - $ - $ 7 $ - $ - $ 7 Home equity line of credit Payment performance Performing $ - $ - $ - $ - $ - $ - $ 46,298 $ 10,488 $ 56,786 Non-performing - - - - - - 402 - 402 Total home equity line of credit $ - $ - $ - $ - $ - $ - $ 46,700 $ 10,488 $ 57,188 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ 13 $ 13 Auto loans - recourse Payment performance Performing $ 2,591 $ 2,803 $ 1,494 $ 2,194 $ 1,383 $ 549 $ - $ - $ 11,014 Non-performing - - - - - - - - - Total auto loans - recourse $ 2,591 $ 2,803 $ 1,494 $ 2,194 $ 1,383 $ 549 $ - $ - $ 11,014 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Auto loans - non-recourse Payment performance Performing $ 2,838 $ 33,584 $ 34,776 $ 13,455 $ 5,696 $ 2,402 $ - $ - $ 92,751 Non-performing - - - - - 5 - - 5 Total auto loans - non-recourse $ 2,838 $ 33,584 $ 34,776 $ 13,455 $ 5,696 $ 2,407 $ - $ - $ 92,756 Current period gross write-offs $ - $ 15 $ 31 $ 17 $ 3 $ 14 $ - $ - $ 80 Direct finance leases (1) Payment performance Performing $ 5,178 $ 8,877 $ 8,982 $ 5,276 $ 683 $ 40 $ - $ - $ 29,036 Non-performing - - - 34 - - - - 34 Total direct finance leases $ 5,178 $ 8,877 $ 8,982 $ 5,310 $ 683 $ 40 $ - $ - $ 29,070 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer - other Payment performance Performing $ 9,137 $ 6,884 $ 2,513 $ 1,596 $ 532 $ 805 $ 2,012 $ - $ 23,479 Non-performing - - 20 - - - - - 20 Total consumer - other $ 9,137 $ 6,884 $ 2,533 $ 1,596 $ 532 $ 805 $ 2,012 $ - $ 23,499 Current period gross write-offs $ 9 $ 29 $ 16 $ 11 $ 4 $ 24 $ - $ - $ 93 Residential real estate Payment performance Performing $ 19,881 $ 51,305 $ 85,810 $ 138,763 $ 51,968 $ 133,646 $ - $ - $ 481,373 Non-performing - 315 - - - 278 - - 593 Total residential real estate $ 19,881 $ 51,620 $ 85,810 $ 138,763 $ 51,968 $ 133,924 $ - $ - $ 481,966 Current period gross write-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential - construction Payment performance Performing $ 4,395 $ 14,756 $ 6,549 $ 5,337 $ 979 $ 629 $ - $ - $ 32,645 Non-performing - - - - - - - - - Total residential - construction $ 4,395 $ 14,756 $ 6,549 $ 5,337 $ 979 $ 629 $ - $ - $ 32,645 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 (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 June 30, 2024 December 31, 2023: (dollars in thousands) Real Estate Other Total Collateral-Dependent Loans At June 30, 2024 Commercial and industrial: Commercial $ - $ 2,685 $ 2,685 Commercial real estate: Non-owner occupied 724 - 724 Owner occupied 2,404 - 2,404 Consumer: Home equity installment 56 - 56 Home equity line of credit 402 - 402 Auto loans - Non-recourse - 5 5 Other 20 - 20 Residential: Real estate 593 - 593 Total $ 4,199 $ 2,690 $ 6,889 (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 six months ended June 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 (153 ) (131 ) (193 ) - - (477 ) Recoveries 5 155 41 45 - 246 Provision (benefit) for credit losses 479 (172 ) 129 (13 ) (23 ) 400 Ending balance $ 2,181 $ 8,687 $ 2,368 $ 5,726 $ 13 $ 18,975 As of and for the three months ended June 30, 2024 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Credit Losses: Beginning balance $ 1,904 $ 8,824 $ 2,263 $ 5,846 $ 49 $ 18,886 Charge-offs (39 ) (126 ) (86 ) - - (251 ) Recoveries 3 - 19 43 - 65 Provision (benefit) for credit losses 313 (11 ) 172 (163 ) (36 ) 275 Ending balance $ 2,181 $ 8,687 $ 2,368 $ 5,726 $ 13 $ 18,975 As of and for the six months ended June 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 ) (32 ) (245 ) - - (597 ) Recoveries 22 41 126 10 - 199 Provision (benefit) for credit losses (543 ) 525 353 470 50 855 Ending balance $ 2,361 $ 8,578 $ 2,514 $ 4,847 $ 50 $ 18,350 As of and for the three months ended June 30, 2023 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Credit Losses: Beginning balance $ 2,550 $ 8,157 $ 2,448 $ 4,683 $ 72 $ 17,910 Charge-offs (150 ) - (143 ) - - (293 ) Recoveries 1 2 55 - - 58 Provision (benefit) for credit losses (40 ) 419 154 164 (22 ) 675 Ending balance $ 2,361 $ 8,578 $ 2,514 $ 4,847 $ 50 $ 18,350 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 Six Months Ended June 30, 2024 For the Six Months Ended June 30, 2023 Beginning balance $ 944 $ 49 Impact of adopting ASC 326 - 1,060 Provision (benefit) for credit losses 90 175 Ending balance $ 1,034 $ 1,284 Direct finance leases The Company originates direct finance leases through three June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 June 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 $ 6,516 2025 14,171 2026 6,671 2027 3,108 2028 121 2029 and thereafter 38 Total future minimum lease payments receivable 30,625 Less: Unearned income (2,055 ) Undiscounted cash flows to be received $ 28,570 |