| Loans and allowance for credit losses | Note 5 – Loans and allowance for credit losses On January 1, 2023, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 1 in this Quarterly report. All information presented as of March 31, 2023 is in accordance with ASC 326. All loan information presented prior to March 31, 2023 is in accordance with previous applicable GAAP. Loans classified by type as of March 31,2023 and December 31, 2022 are as follows (dollars in thousands): March 31, 2023 December 31, 2022 Amount % Amount % Construction and land development Residential $ 6,259 1.16 % $ 9,727 1.81 % Commercial 43,167 8.00 % 35,400 6.57 % 49,426 9.16 % 45,127 8.38 % Commercial real estate Owner occupied 117,124 21.70 % 119,643 22.22 % Non-owner occupied 152,810 28.31 % 153,610 28.53 % Multifamily 11,585 2.14 % 11,291 2.10 % Farmland 68 0.01 % 73 0.01 % 281,587 52.16 % 284,617 52.86 % Consumer real estate Home equity lines 17,898 3.32 % 18,421 3.42 % Secured by 1-4 family residential, First deed of trust 70,157 13.00 % 67,495 12.54 % Second deed of trust 8,560 1.58 % 7,764 1.44 % 96,615 17.90 % 93,680 17.40 % Commercial and industrial loans (except those secured by real estate) 87,728 16.25 % 90,348 16.78 % Guaranteed student loans 20,195 3.74 % 20,617 3.83 % Consumer and other 4,267 0.79 % 4,038 0.75 % Total loans 539,818 100.0 % 538,427 100.0 % Deferred (fees) and costs, net 647 588 Less: allowance for credit losses (3,272) (3,370) $ 537,193 $ 535,645 The Bank has a purchased portfolio of rehabilitated student loans guaranteed by the U.S. Department of Education (“DOE”). The guarantee covers approximately 98% of principal and accrued interest. The loans are serviced by a third-party servicer that specializes in handling the special needs of the DOE student loan programs. Loans pledged as collateral with the FHLB as part of their lending arrangement with the Company totaled $30,458,000 and $33,706,000 as of March 31, 2023 and December 31, 2022, respectively. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due as long as the remaining recorded investment in the loan is deemed fully collectible. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): March 31, December 31, 2023 2022 Consumer real estate Home equity lines $ 300 $ 300 Secured by 1-4 family residential First deed of trust 164 164 Second deed of trust 107 171 571 635 Commercial and industrial loans (except those secured by real estate) 18 19 Total loans $ 589 $ 654 The Company recognized $9,000 of interest on nonaccrual loans as of March 31, 2023. The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups: ● Risk rated 1 to 4 (Pass) loans are considered of sufficient quality to preclude an adverse rating. These assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral; ● Risk rated 5 (Special Mention) loans are defined as having potential weaknesses that deserve management’s close attention; ● Risk rated 6 (Substandard) loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; and ● Risk rated 7 (Doubtful) loans have all the weaknesses inherent in substandard loans, with the added characteristics 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 tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1 ‑ 4 5 6 7 Loans December 31, 2022 Construction and land development Residential $ 9,727 $ — $ — $ — $ 9,727 Commercial 32,763 2,637 — — 35,400 42,490 2,637 — — 45,127 Commercial real estate Owner occupied 115,825 2,583 1,235 — 119,643 Non-owner occupied 143,458 10,152 — — 153,610 Multifamily 11,291 — — — 11,291 Farmland 73 — — — 73 270,647 12,735 1,235 — 284,617 Consumer real estate Home equity lines 17,507 614 300 — 18,421 Secured by 1-4 family residential First deed of trust 66,616 407 472 — 67,495 Second deed of trust 7,517 72 175 — 7,764 91,640 1,093 947 — 93,680 Commercial and industrial loans (except those secured by real estate) 83,848 6,481 19 — 90,348 Guaranteed student loans 20,617 — — — 20,617 Consumer and other 4,017 — 21 — 4,038 Total loans $ 513,259 $ 22,946 $ 2,222 $ — $ 538,427 Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. As of March 31, 2022, based on the most recent analysis performed, the risk category of loans based on year of origination is as follows: Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans March 31, 2023 Construction and land development Residential Pass $ 180 $ 5,485 $ 594 $ — $ — $ — $ — $ — $ 6,259 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Residential $ 180 $ 5,485 $ 594 $ — $ — $ — $ — $ — $ 6,259 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass 1,221 13,278 15,939 255 3,378 5,784 3,312 — 43,167 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial $ 1,221 $ 13,278 $ 15,939 $ 255 $ 3,378 $ 5,784 $ 3,312 $ — $ 43,167 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Owner occupied Pass 576 18,800 26,434 8,740 12,145 46,148 724 — 113,567 Special Mention — — — — — 2,322 — — 2,322 Substandard — — — — 1,235 — — — 1,235 Total Owner occupied $ 576 $ 18,800 $ 26,434 $ 8,740 $ 13,380 $ 48,470 $ 724 $ — $ 117,124 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans Non-owner occupied Pass 2,493 24,863 25,189 25,737 10,259 51,358 2,838 — 142,737 Special Mention — — 2,209 54 — 7,810 — — 10,073 Substandard — — — — — — — — — Total Non-owner occupied $ 2,493 $ 24,863 $ 27,398 $ 25,791 $ 10,259 $ 59,168 $ 2,838 $ — $ 152,810 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily Pass — — 2,709 565 901 6,420 990 — 11,585 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Multifamily $ — $ — $ 2,709 $ 565 $ 901 $ 6,420 $ 990 $ — $ 11,585 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Farmland Pass — — 33 — — 35 — — 68 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Farmland $ — $ — $ 33 $ — $ — $ 35 $ — $ — $ 68 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate Home equity lines Pass — 445 — — — — 16,539 — 16,984 Special Mention — — — — — — 614 — 614 Substandard — — — — — — 300 — 300 Total Home equity lines $ — $ 445 $ — $ — $ — $ — $ 17,453 $ — $ 17,898 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Secured by 1-4 family residential First deed of trust Pass 5,938 14,734 16,388 9,275 3,465 19,502 — — 69,302 Special Mention — — — — 174 488 — — 662 Substandard — — — — — 193 — — 193 Total First deed of trust $ 5,938 $ 14,734 $ 16,388 $ 9,275 $ 3,639 $ 20,183 $ — $ — $ 70,157 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Second deed of trust Pass 919 3,616 1,054 444 1,332 733 235 — 8,333 Special Mention — — — — 46 71 — — 117 Substandard — — — — 3 107 — — 110 Total Second deed of trust $ 919 $ 3,616 $ 1,054 $ 444 $ 1,381 $ 911 $ 235 $ $ 8,560 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans (except those secured by real estate) Pass 6,278 14,717 20,593 6,756 4,314 4,744 23,476 — 80,878 Special Mention — 4,189 201 — 88 132 2,222 — 6,832 Substandard — — — — — 18 — — 18 Total Commercial and industrial $ 6,278 $ 18,906 $ 20,794 $ 6,756 $ 4,402 $ 4,894 $ 25,698 $ — $ 87,728 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Guaranteed student loans Pass — — — — — 20,195 — — 20,195 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Guaranteed student loans $ — $ — $ — $ — $ — $ 20,195 $ — $ — $ 20,195 Current period gross writeoff $ 3 $ — $ — $ — $ — $ — $ — $ — $ 3 Consumer and other Pass 297 658 187 100 15 28 2,964 — 4,249 Special Mention — — — — 18 — — — 18 Substandard — — — — — — — — — Total Consumer and other $ 297 $ 658 $ 187 $ 100 $ 33 $ 28 $ 2,964 $ $ 4,267 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Total Current period gross writeoff $ 3 $ — $ — $ — $ — $ — $ — $ — $ 3 Total loans $ 17,902 $ 100,785 $ 111,530 $ 51,926 $ 37,373 $ 166,088 $ 54,214 $ — $ 539,818 The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands): Greater Investment > 30 ‑ 59 Days 60 ‑ 89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing March 31, 2023 Construction and land development Residential $ — $ — $ — $ — $ 6,259 $ 6,259 $ — Commercial — — — — 43,167 43,167 — — — — — 49,426 49,426 — Commercial real estate Owner occupied — — — — 117,124 117,124 — Non-owner occupied — — — — 152,810 152,810 — Multifamily — — — — 11,585 11,585 — Farmland — — — — 68 68 — — — — — 281,587 281,587 — Consumer real estate Home equity lines — — — — 17,898 17,898 — Secured by 1‑4 family residential First deed of trust — — — — 70,157 70,157 — Second deed of trust — — — — 8,560 8,560 — — — — — 96,615 96,615 — Commercial and industrial loans (except those secured by real estate) 1,913 — — 1,913 85,815 87,728 — Guaranteed student loans 531 533 1,871 2,935 17,260 20,195 1,871 Consumer and other — — — — 4,267 4,267 — Total loans $ 2,444 $ 533 $ 1,871 $ 4,848 $ 534,970 $ 539,818 $ 1,871 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2022 Construction and land development Residential $ — $ — $ — $ — $ 9,727 $ 9,727 $ — Commercial — — — — 35,400 35,400 — — — — — 45,127 45,127 — Commercial real estate Owner occupied — — — — 119,643 119,643 — Non-owner occupied — — — — 153,610 153,610 — Multifamily — — — — 11,291 11,291 — Farmland — — — — 73 73 — — — — — 284,617 284,617 — Consumer real estate Home equity lines — 50 — 50 18,371 18,421 — Secured by 1-4 family residential First deed of trust — — — — 67,495 67,495 — Second deed of trust 54 — — 54 7,710 7,764 — 54 50 — 104 93,576 93,680 — Commercial and industrial loans (except those secured by real estate) 1,022 — 377 1,399 88,949 90,348 — Guaranteed student loans 831 390 1,725 2,946 17,671 20,617 1,725 Consumer and other — — — — 4,038 4,038 — Total loans $ 1,907 $ 440 $ 2,102 $ 4,449 $ 533,978 $ 538,427 $ 1,725 Loans greater than 90 days past due are United States Department of Agriculture loans which carry a 100% guarantee of the principal and interest and student loans that are guaranteed by the DOE which covers approximately 98% of the principal and interest. Accordingly, these loans will not be placed on nonaccrual status and are not considered to be collateral dependent. Loans that are individually evaluated for credit losses are limited to loans that have specific risk characteristics that are not shared by other loans and based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. The repayment of these loans is expected to be substantially through the operations or the sale of the collateral. The allowance for credit losses on loans that are individually evaluated will be measured based on the fair value of the collateral either through operations or the sale of the collateral, when repayment is expected through the sale of the collateral the allowance will be based on the fair value of the collateral less estimated costs to sell. Collateral dependent loans, or portions thereof, are charged off when deemed uncollectible. Collateral dependent loans are set forth in the following table as of the dates indicated (in thousands): March 31, 2023 December 31, 2022 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ 1,235 $ 1,250 $ — $ 4,332 $ 4,347 $ — Non-owner occupied — — — 312 312 — 1,235 1,250 — 4,644 4,659 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1‑4 family residential First deed of trust 193 193 — 1,745 1,745 — Second deed of trust 111 195 — 195 300 — 604 688 — 2,240 2,345 — Commercial and industrial loans (except those secured by real estate) 18 18 — 19 19 — 1,857 1,956 — 6,903 7,023 — With an allowance recorded Commercial real estate Owner occupied — — — 251 251 2 — — — 251 251 2 Consumer real estate Secured by 1-4 family residential First deed of trust — — — 136 136 6 — — — 136 136 6 Consumer and other — — — 21 21 1 — — — 408 408 9 Total Owner occupied 1,235 1,250 — 4,583 4,598 2 Non-owner occupied — — — 312 312 — 1,235 1,250 — 4,895 4,910 2 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 193 193 — 1,881 1,881 6 Second deed of trust 111 195 — 195 300 — 604 688 — 2,376 2,481 6 Commercial and industrial loans (except those secured by real estate) 18 18 — 19 19 — Consumer and other — — — 21 21 1 $ 1,857 $ 1,956 $ — $ 7,311 $ 7,431 $ 9 The following is a summary of average recorded investment in collateral dependent loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months Ended For the Three Months Ended March 31, 2023 March 31, 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Commercial real estate Owner occupied $ 3,468 $ 16 $ 4,942 $ 31 Non-owner occupied 496 — 1,655 17 3,964 16 6,597 48 Consumer real estate Home equity lines 300 6 300 — Secured by 1-4 family residential First deed of trust 1,394 2 1,850 20 Second deed of trust 186 1 447 3 1,880 9 2,597 23 Commercial and industrial loans (except those secured by real estate) 54 1 190 — 5,898 26 9,384 71 With an allowance recorded Commercial real estate Owner occupied 191 — 133 4 191 — 133 4 Consumer real estate Secured by 1-4 family residential First deed of trust 86 — 147 2 Second deed of trust 8 — 40 — 94 — 187 2 Consumer and other 16 — — — 301 — 320 6 Total Commercial real estate Owner occupied 3,659 16 5,075 35 Non-owner occupied 496 — 1,655 17 4,155 16 6,730 52 Consumer real estate Home equity lines 300 6 300 — Secured by 1-4 family residential, First deed of trust 1,480 2 1,997 22 Second deed of trust 194 1 487 3 1,974 9 2,784 25 Commercial and industrial loans (except those secured by real estate) 54 1 190 — Consumer and other 16 — — — $ 6,199 $ 26 $ 9,704 $ 77 Loan Modifications to Borrowers in Financial Difficulty As part of its credit risk management, the Company may modify a loan agreement with a borrower experiencing financial difficulties through a refinancing or restructuring of the borrower’s loan agreement. There were no modified loans identified during the three months ended March 31, 2023. Prior Period Troubled Debt Restructuring Disclosures Prior to adopting the new accounting standard on loan modifications, the Company accounted for modifications of loans to borrowers experiencing financial difficulties as TDRs, when the modification resulted in a concession. The following discussion reflects loans that are considered TDRs prior to January 1, 2023. Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance December 31, 2022 Commercial real estate Owner occupied $ 3,348 $ 3,348 $ — $ 2 Non-owner occupied 312 312 — — 3,660 3,660 — 2 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,409 1,409 — 6 Second deeds of trust 75 19 56 — 1,484 1,428 56 6 Commercial and industrial loans (except those secured by real estate) 19 — 19 — $ 5,163 $ 5,088 $ 75 $ 8 Number of loans 24 22 2 3 There were no new TDRs identified for the period ended December 31, 2022. A TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. The specific reserve associated with a TDR is reevaluated when a TDR payment default occurs. There were no defaults on TDRs that were modified as TDRs during the prior 12 month periods ended March 31, 2023 and 2022. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company’s forecast of estimated expected losses is based on a twelve-month forecast of the national rate of unemployment and external observations of historical loan losses. The Company uses the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, and collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. Activity in the allowance for credit losses is as follows for the periods indicated (in thousands): Impact of Provision for Beginning adopting (Recovery of) Ending Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2023 Construction and land development Residential $ 79 $ 3 $ (31) $ — $ — $ 51 Commercial 192 34 38 — — 264 271 37 7 — — 315 Commercial real estate Owner occupied 867 (475) (1) — — 391 Non-owner occupied 1,289 192 (21) — — 1,460 Multifamily 33 7 — — — 40 Farmland — — — — — — 2,189 (276) (22) — — 1,891 Consumer real estate Home equity lines 11 24 (2) — — 33 Secured by 1-4 family residential — First deed of trust 131 76 6 — 1 214 Second deed of trust 43 25 5 — 2 75 185 125 9 — 3 322 Commercial and industrial loans (except those secured by real estate) 576 1 (34) — 6 549 Student loans 52 — 63 (3) — 112 Consumer and other 37 (5) 2 — — 34 Unallocated 60 (9) (2) — — 49 $ 3,370 $ (127) $ 23 $ (3) $ 9 $ 3,272 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2022 Construction and land development Residential $ 57 $ (11) $ — $ — $ 46 Commercial 229 (30) — — 199 286 (41) — — 245 Commercial real estate Owner occupied 833 59 — — 892 Non-owner occupied 1,083 23 — — 1,106 Multifamily 35 2 — — 37 Farmland 2 — — — 2 1,953 84 — — 2,037 Consumer real estate Home equity lines 12 (58) — 58 12 Secured by 1-4 family residential First deed of trust 123 (6) — 1 118 Second deed of trust 47 (269) — 302 80 182 (333) — 361 210 Commercial and industrial loans (except those secured by real estate) 486 (68) — 28 446 Student loans 65 7 (9) — 63 Consumer and other 29 6 — — 35 Unallocated 422 (55) — — 367 $ 3,423 $ (400) $ (9) $ 389 $ 3,403 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2022 Construction and land development Residential $ 57 $ 22 $ — $ — $ 79 Commercial 229 (37) — — 192 286 (15) — — 271 Commercial real estate Owner occupied 833 34 — — 867 Non-owner occupied 1,083 206 — — 1,289 Multifamily 35 (2) — — 33 Farmland 2 (2) — — — 1,953 236 — — 2,189 Consumer real estate Home equity lines 12 (59) — 58 11 Secured by 1-4 family residential First deed of trust 123 3 — 5 131 Second deed of trust 47 (311) (27) 334 43 182 (367) (27) 397 185 Commercial and industrial loans (except those secured by real estate) 486 180 (157) 67 576 Student loans 65 18 (31) — 52 Consumer and other 29 10 (2) — 37 Unallocated 422 (362) — — 60 $ 3,423 $ (300) $ (217) $ 464 $ 3,370 Loans are required to be measured at amortized costs and to be presented at the net amount expected to be collected. Off balance sheet credit exposures, including loan commitments, are not recorded on balance sheet, but expected credit losses arising from off balance sheet credit exposures are recorded as a reserve for unfunded commitments and reported in Other Liabilities. Credit losses on available for sale debt securities are accounted for as an allowance for credit losses, which is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value and the amount expected to be collected on the financial assets. The allowance for credit losses on loans, available for sale debt securities and the reserve for unfunded commitments are established through a provision for credit losses charged against earnings. Amounts reported for the three months ended March 31, 2023 are in accordance with ASC 326, whereas amounts reported for periods prior to January 1, 2023 are presented in accordance with previously applicable GAAP. The following table presents a breakdown of the provision for credit losses for the periods indicated (in thousands): Three Months Ended March 31, 2023 2022 Provision for credit losses: Provision (recovery) for loans $ 23 $ (400) Provision (recovery) for unfunded commitments (23) — Total $ — $ (400) On January 1, 2023, the Commercial Banking Segment adopted the CECL methodology for estimating credit losses, which resulted in an increase of $150,000 in the allowance for credit losses on January 1, 2023. The Allowance for Credit Losses included an allowance for credit losses on loans of $3.24 million and a |
