Allowance for Credit Losses [Text Block] | Note 5: Please refer to Note 1: Portfolio Segments and Classes The Company determines major segments of loans and smaller classes within each segment based upon characteristics including collateral type and intended use, repayment sources, and (if applicable) the borrower’s business model. The methodology for calculating reserves for collectively evaluated loans is applied at the class level. The Company’s loan segments and classes within each segment are presented below: Real Estate Construction Construction, residential Construction, other Consumer Real Estate Equity lines Residential closed-end first Residential closed-end junior liens Investor-owned residential real estate Commercial Real Estate Multifamily real estate Commercial real estate, owner-occupied Commercial real estate, other Commercial Non Real Estate Commercial and industrial Public Sector and IDA State and political subdivisions Consumer Non-Real Estate Credit cards Automobile Other consumer loans Collectively evaluated loans within each class are further stratified by risk rating: pass-rated loans, loans rated special mention, and loans rated classified. Credit risk for collectively evaluated loans is estimated at the class level, by risk rating, by applying historical net charge-off rates and percentages for qualitative factors that influence credit risk. Please refer to Note 1: A detailed analysis showing the allowance roll-forward by portfolio segment follows: Activity in the Allowance for Loan Losses by Segment for the year ended December 31, 2022 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non-Real Estate Unallocated Total Balance, December 31, 2021 $ 422 $ 1,930 $ 3,121 $ 1,099 $ 297 $ 444 $ 361 $ 7,674 Charge-offs - (13 ) - (2 ) - (352 ) - (367 ) Recoveries - 29 49 11 - 123 - 212 Provision for (recovery of) loan losses 28 253 472 (178 ) 22 291 (182 ) 706 Balance, December 31, 2022 $ 450 $ 2,199 $ 3,642 $ 930 $ 319 $ 506 $ 179 $ 8,225 Activity in the Allowance for Loan Losses by Segment for the year ended December 31, 2021 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non-Real Estate Unallocated Total Balance, December 31, 2020 $ 503 $ 2,165 $ 3,853 $ 670 $ 339 $ 555 $ 396 $ 8,481 Charge-offs - (13 ) - (526 ) - (216 ) - (755 ) Recoveries - 20 159 33 - 134 - 346 Provision for (recovery of) loan losses (81 ) (242 ) (891 ) 922 (42 ) (29 ) (35 ) (398 ) Balance, December 31, 2021 $ 422 $ 1,930 $ 3,121 $ 1,099 $ 297 $ 444 $ 361 $ 7,674 A detailed analysis showing the allowance and loan portfolio by segment and evaluation method follows: Allowance for Loan Losses by Segment and Evaluation Method as of December 31, 2022 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non- Real Estate Unallocated Total Individually evaluated $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated 450 2,199 3,642 930 319 506 179 8,225 Total $ 450 $ 2,199 $ 3,642 $ 930 $ 319 $ 506 $ 179 $ 8,225 Loans by Segment and Evaluation Method as of December 31, 2022 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non-Real Estate Unallocated Total Individually evaluated $ - $ 186 $ 2,583 $ 263 $ - $ - $ - $ 3,032 Collectively evaluated 54,579 220,866 435,305 57,389 48,074 33,948 - 850,161 Total $ 54,579 $ 221,052 $ 437,888 $ 57,652 $ 48,074 $ 33,948 $ - $ 853,193 Allowance for Loan Losses by Segment and Evaluation Method as of December 31, 2021 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non- Real Estate Unallocated Total Individually evaluated $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated 422 1,930 3,121 1,099 297 444 361 7,674 Total $ 422 $ 1,930 $ 3,121 $ 1,099 $ 297 $ 444 $ 361 $ 7,674 Loans by Segment and Evaluation Method as of December 31, 2021 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non- Real Estate Unallocated Total Individually evaluated $ - $ 191 $ 5,386 $ 301 $ - $ - $ - $ 5,878 Collectively evaluated 48,841 208,786 400,336 59,963 47,899 32,026 - 797,851 Total $ 48,841 $ 208,977 $ 405,722 $ 60,264 $ 47,899 $ 32,026 $ - $ 803,729 A summary of ratios for the allowance for loan losses, as of the dates indicated, follows: December 31, 2022 2021 Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees and costs 0.96 % 0.96 % Ratio of net charge-offs to average loans, net of unearned income and deferred fees and costs 0.02 % 0.05 % A summary of nonperforming assets, as of the dates indicated, follows: December 31, 2022 2021 Nonperforming assets: Nonaccrual loans $ 91 $ - TDR loans in nonaccrual 2,756 2,873 Total nonperforming loans 2,847 2,873 Other real estate owned, net 662 957 Total nonperforming assets $ 3,509 $ 3,830 Ratio of nonperforming assets to loans, net of unearned income and deferred fees and costs, plus other real estate owned 0.41 % 0.48 % Ratio of allowance for loan losses to nonperforming loans (1) 288.90 % 267.11 % ( 1 The Company defines nonperforming loans as total nonaccrual and TDR loans that are nonaccrual. Loans 90 days past due and still accruing and accruing TDR loans are excluded. As of December 31, 2022, December 31, 2022, A summary of loans past due 90 December 31, 2022 2021 Loans past due 90 days or more and still accruing $ 8 $ 90 Ratio of loans past due 90 days or more and still accruing to loans, net of unearned income and deferred fees and costs 0.00 % 0.01 % Accruing TDR loans $ 276 $ 3,005 Impaired loans: Impaired loans with no valuation allowance $ 3,032 $ 5,878 Impaired loans with a valuation allowance - - Total impaired loans $ 3,032 $ 5,878 Valuation allowance $ - $ - Impaired loans, net of allowance $ 3,032 $ 5,878 Average recorded investment in impaired loans (1) $ 3,047 $ 5,901 Income recognized on impaired loans, after designation as impaired $ 18 $ 137 Amount of income recognized on a cash basis $ - $ - ( 1 No interest income was recognized on nonaccrual loans for the years ended December 31, 2022 2021. A detailed analysis of investment in impaired loans, associated reserves and interest income recognized, by loan class follows: Impaired Loans as of December 31, 2022 Principal Balance (A) Total Recorded Investment (1) Recorded Investment (1) in (A) for Which There is No Related Allowance Recorded Investment (1) in (A) for Which There is a Related Allowance Related Allowance Consumer Real Estate (2) Investor-owned residential real estate $ 186 $ 186 $ 186 $ - $ - Commercial Real Estate (2) Commercial real estate, owner occupied 3,248 2,583 2,583 - - Commercial Non Real Estate (2) Commercial and industrial 285 263 263 - - Total $ 3,719 $ 3,032 $ 3,032 $ - $ - Impaired Loans as of December 31, 2021 Principal Balance (A) Total Recorded Investment (1) Recorded Investment (1) in (A) for Which There is No Related Allowance Recorded Investment (1) in (A) for Which There is a Related Allowance Related Allowance Consumer Real Estate (2) Investor-owned residential real estate $ 191 $ 191 $ 191 $ - $ - Commercial Real Estate (2) Commercial real estate, owner occupied 3,256 2,665 2,665 - - Commercial real estate, other 2,721 2,721 2,721 - - Commercial Non Real Estate (2) Commercial and industrial 310 301 301 - - Total $ 6,478 $ 5,878 $ 5,878 $ - $ - ( 1 Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status. ( 2 Only classes with impaired loans are shown. Information on the average investment and interest income of impaired loans is presented in the tables below: For the Year Ended December 31, 2022 Average Recorded Investment (1) Interest Income Recognized Consumer Real Estate (2) Investor-owned residential real estate $ 188 $ 13 Commercial Real Estate (2) Commercial real estate, owner occupied 2,587 5 Commercial real estate, other 729 - Commercial Non Real Estate (2) Commercial and industrial 272 - Total $ 3,776 $ 18 For the Year Ended December 31, 2021 Average Recorded Investment (1) Interest Income Recognized Consumer Real Estate (2) Investor-owned residential real estate $ 192 $ 13 Commercial Real Estate (2) Commercial real estate, owner occupied 2,668 9 Commercial real estate, other 2,723 100 Commercial Non Real Estate (2) Commercial and industrial 317 15 Consumer Non-Real Estate (2) Automobile 1 - Total $ 5,901 $ 137 ( 1 Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status. ( 2 Only classes with impaired loans are shown. An analysis of past due and nonaccrual loans, as of the dates indicated, follows: December 31, 2022 30 89 Days Past Due and Accruing 90 or More Days Past Due 90 or More Days Past Due and Accruing Nonaccruals (2) Consumer Real Estate (1) Equity line $ 16 $ - $ - $ - Residential closed-end first liens 750 91 - 91 Investor-owned residential real estate 408 - - - Commercial Real Estate (1) Commercial real estate, owner occupied - 252 - 2,493 Commercial Non Real Estate (1) Commercial and industrial 16 - - 263 Consumer Non-Real Estate (1) Credit cards 3 2 2 - Automobile 102 - - - Other consumer loans 93 6 6 - Total $ 1,388 $ 351 $ 8 $ 2,847 ( 1 Only classes with past due or nonaccrual loans are presented. ( 2 Includes current and past due loans in nonaccrual status. Includes impaired loans in nonaccrual status. December 31, 2021 30 89 Days Past Due and Accruing 90 or More Days Past Due 90 or More Days Past Due and Accruing Nonaccruals (2) Real Estate Construction (1) Construction, other $ 14 $ - $ - $ - Consumer Real Estate (1) Equity lines 50 29 29 - Residential closed-end first liens 715 58 58 - Commercial Real Estate (1) Commercial real estate, owner occupied 12 266 - 2,572 Commercial Non Real Estate (1) Commercial and industrial 13 - - 301 Consumer Non-Real Estate (1) Credit cards 2 2 2 - Automobile 93 - - - Other consumer loans 88 1 1 - Total $ 987 $ 356 $ 90 $ 2,873 ( 1 Only classes with past due or nonaccrual loans are presented. ( 2 Includes current and past due loans in nonaccrual status. Includes impaired loans in nonaccrual status. Determination of risk grades was completed for the portfolio as of December 31, 2022 2021. December 31, 2022 Pass Special Mention Classified Real Estate Construction Construction, 1-4 family residential $ 12,538 $ - $ - Construction, other 41,741 - 300 Consumer Real Estate Equity lines 15,026 - - Residential closed-end first liens 122,187 - 461 Residential closed-end junior liens 2,446 - - Investor-owned residential real estate 80,143 - 603 Commercial Real Estate Multifamily residential real estate 127,312 - - Commercial real estate owner-occupied 126,550 - - Commercial real estate, other 181,443 - - Commercial Non Real Estate Commercial and industrial 57,381 - 8 Public Sector and IDA States and political subdivisions 48,074 - - Consumer Non-Real Estate Credit cards 4,597 - - Automobile 9,932 - 3 Other consumer 19,398 - 18 Total $ 848,768 $ - $ 1,393 December 31, 2021 Pass Special Mention Classified Real Estate Construction Construction, 1-4 family residential $ 10,008 $ - $ - Construction, other 38,833 - - Consumer Real Estate Equity lines 13,588 - 29 Residential closed-end first liens 106,107 - 275 Residential closed-end junior liens 2,715 - - Investor-owned residential real estate 85,460 - 612 Commercial Real Estate Multifamily residential real estate 106,644 - - Commercial real estate owner-occupied 125,605 - 35 Commercial real estate, other 164,324 3,728 - Commercial Non Real Estate Commercial and industrial 59,953 - 10 Public Sector and IDA States and political subdivisions 47,899 - - Consumer Non-Real Estate Credit cards 4,531 - - Automobile 10,990 - 3 Other consumer 16,402 - 100 Total $ 793,059 $ 3,728 $ 1,064 Sales, Purchases and Reclassification of Loans The Company finances mortgages under “best efforts” contracts with mortgage purchasers. The mortgages are designated as held for sale upon initiation. There have been no Troubled Debt Restructurings Total TDRs amounted to $3,032 at December 31, 2022 December 31, 2021. no TDRs Designated During the Reporting Period The Company did not 2022, 2021. No three December 31, 2021 not The following table presents TDRs by class that occurred during the year ended December 31, 2021. TDRs that occurred during the year ended December 31, 2021 Recorded Investment Outstanding Number of Contracts Pre-Modification Post-Modification (1) Commercial Real Estate Commercial real estate owner-occupied 1 $ 102 $ 102 Commercial real estate, other 2 2,724 2,724 Total 3 $ 2,826 $ 2,826 ( 1 Post-modification outstanding recorded investment considers amounts immediately following the modification. Amounts do not Defaulted TDRs The Company analyzed its TDR portfolio for loans that defaulted during 2022 2021, 12 three one 90 Of the Company’s TDRs at December 31, 2022 December 31, 2021, none 12 |