Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 7 LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES The following table summarizes the loan portfolio by primary segment and class of financial receivable (in thousands) (a)(b) June 30, December 31, 2024 2023 Commercial real estate: Owner occupied $ 182,809 $ 183,545 Non-owner occupied 385,648 401,580 Multifamily 86,951 82,506 Residential real estate 337,121 328,854 Commercial and industrial 234,702 221,508 Home equity lines of credit 131,047 127,818 Construction and other 132,530 125,105 Consumer installment 6,896 7,214 Total loans 1,497,704 1,478,130 Less: Allowance for credit losses (21,795 ) (21,693 ) Net loans $ 1,475,909 $ 1,456,437 (a) Accrued interest of $5.7 million and $5.5 million at June 30, 2024 December 31, 2023 (b) Unearned income, including net deferred loan fees and costs and unamortized premiums and discounts, totaled $8.6 million and $9.2 million at June 30, 2024 December 31, 2023 Allowance for Credit Losses: Loans On January 1, 2023, 2016 13. Management reviews the loan portfolio quarterly using a defined, consistently applied process to make appropriate and timely adjustments to the ACL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ACL. The following tables summarize the ACL within the primary segments of the loan portfolio and the activity within those segments (in thousands): For the Three Months Ended June 30, 2024 Allowance for Credit Losses Balance Balance March 31, 2024 Charge-offs Recoveries Provision June 30, 2024 Loans: Commercial real estate: Owner occupied $ 2,060 $ - $ - $ (2 ) $ 2,058 Non-owner occupied 7,768 - - 213 7,981 Multifamily 1,204 - - 64 1,268 Residential real estate 4,774 - - 117 4,891 Commercial and industrial 2,038 - 8 384 2,430 Home equity lines of credit 785 - - 28 813 Construction and other 2,373 - - (83 ) 2,290 Consumer installment 67 (6 ) 27 (24 ) 64 Total $ 21,069 $ (6 ) $ 35 $ 697 $ 21,795 For the Three Months Ended June 30, 2023 Allowance for Credit Losses Balance CECL Balance March 31, 2023 Adoption Charge-offs Recoveries Provision June 30, 2023 Loans: Commercial real estate: Owner occupied $ 2,678 $ - $ (46 ) $ 1 $ 780 $ 3,413 Non-owner occupied 4,712 - - - (866 ) 3,846 Multifamily 1,371 - - - (92 ) 1,279 Residential real estate 4,967 - (108 ) - 255 5,114 Commercial and industrial 3,819 - (6 ) 9 282 4,104 Home equity lines of credit 809 - - - (86 ) 723 Construction and other 1,553 - - - 331 1,884 Consumer installment 253 - (3 ) 42 (64 ) 228 Total $ 20,162 $ - $ (163 ) $ 52 $ 540 $ 20,591 For the Six Months Ended June 30, 2024 Allowance for Credit Losses Balance Balance December 31, 2023 Charge-offs Recoveries Provision June 30, 2024 Loans: Commercial real estate: Owner occupied $ 2,668 $ - $ 11 $ (621 ) $ 2,058 Non-owner occupied 4,480 - - 3,501 7,981 Multifamily 1,796 - - (528 ) 1,268 Residential real estate 5,450 - - (559 ) 4,891 Commercial and industrial 4,377 - 16 (1,963 ) 2,430 Home equity lines of credit 750 (7 ) - 70 813 Construction and other 1,990 - - 300 2,290 Consumer installment 182 (6 ) 83 (195 ) 64 Total $ 21,693 $ (13 ) $ 110 $ 5 $ 21,795 For the Six Months Ended June 30, 2023 Allowance for Credit Losses Balance CECL Balance December 31, 2022 Adoption Charge-offs Recoveries Provision June 30, 2023 Loans: Commercial real estate: Owner occupied $ 2,203 $ 811 $ (46 ) $ 3 $ 442 $ 3,413 Non-owner occupied 5,597 (1,206 ) - - (545 ) 3,846 Multifamily 662 591 - - 26 1,279 Residential real estate 2,047 2,744 (108 ) - 431 5,114 Commercial and industrial 1,483 2,320 (60 ) 20 341 4,104 Home equity lines of credit 1,753 (1,031 ) - 70 (69 ) 723 Construction and other 609 956 - - 319 1,884 Consumer installment 84 197 (61 ) 79 (71 ) 228 Total $ 14,438 $ 5,382 $ (275 ) $ 172 $ 874 $ 20,591 The total ACL increased by $102,000, or 0.5%, from December 31, 2023 June 30, 2024 not • Increase in residential real estate, C&I, and construction loans offset by a decrease in the loss rate included in the ACL calculation. • Decrease in non-owner occupied CRE loans offset by an increase in the loss rate included in the ACL calculation. The provision fluctuations during the six June 30, 2023 • Adoption of CECL on January 1, 2023 • Increase in non-owner occupied commercial loans, residential real estate, C&I, and construction loans • Decrease in owner-occupied loans Credit Quality Indicators Management evaluates individual loans in all of the commercial segments for possible impairment based on guidelines established by the Board of Directors. Loans are individually analyzed when, based on current information and events, the Company will probably be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating credit loss include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall concerning the principal and interest owed. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made quarterly. Management uses a nine first five not not not 90 To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as payment delinquency, bankruptcy, repossession, or death, occurs to raise awareness of a possible credit quality loss. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. The Credit Department performs an annual review of all commercial relationships with loan balances of $750,000 or greater. Detailed reviews, including plans for resolution, are performed on criticized loans of $150,000 or more on at least a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table represents outstanding loan balances by credit quality indicators and vintage year by class of financing receivable and current period gross charge-offs by year of origination as of June 30, 2024 June 30, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Amortized (Dollar amounts in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Total Commercial real estate: Owner occupied Pass $ 5,523 $ 20,753 $ 30,965 $ 38,412 $ 25,592 $ 50,059 $ 2,407 $ 173,711 Special Mention - - - 402 - 789 - 1,191 Substandard - - 4,562 - - 3,345 - 7,907 Total Owner occupied $ 5,523 $ 20,753 $ 35,527 $ 38,814 $ 25,592 $ 54,193 $ 2,407 $ 182,809 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Non-owner occupied Pass $ 5,480 $ 43,873 $ 91,055 $ 40,339 $ 20,833 $ 142,187 $ 179 $ 343,946 Special Mention - - 2,508 - - 2,129 - 4,637 Substandard - - 3,991 639 - 32,435 - 37,065 Total Non-owner occupied $ 5,480 $ 43,873 $ 97,554 $ 40,978 $ 20,833 $ 176,751 $ 179 $ 385,648 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Multifamily Pass $ 2,766 $ 28,897 $ 25,488 $ 7,545 $ 10,256 $ 11,953 $ 46 $ 86,951 Total Multifamily $ 2,766 $ 28,897 $ 25,488 $ 7,545 $ 10,256 $ 11,953 $ 46 $ 86,951 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate Pass $ 20,935 $ 49,734 $ 55,009 $ 76,884 $ 37,503 $ 94,586 $ 885 $ 335,536 Substandard - - 121 107 - 1,357 - 1,585 Total Residential real estate $ 20,935 $ 49,734 $ 55,130 $ 76,991 $ 37,503 $ 95,943 $ 885 $ 337,121 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Commercial and industrial Pass $ 22,184 $ 42,175 $ 37,492 $ 15,639 $ 22,547 $ 6,558 $ 70,309 $ 216,904 Special Mention - - - - - - 792 792 Substandard 214 5,011 1,013 - 336 105 10,331 17,010 Loss - - - - - (4 ) - (4 ) Total Commercial and industrial $ 22,398 $ 47,186 $ 38,505 $ 15,639 $ 22,883 $ 6,659 $ 81,432 $ 234,702 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Home equity lines of credit Pass $ - $ - $ 155 $ - $ 42 $ 2,016 $ 127,192 $ 129,405 Substandard - - 100 - 35 756 751 1,642 Total Home equity lines of credit $ - $ - $ 255 $ - $ 77 $ 2,772 $ 127,943 $ 131,047 Current-period gross charge-offs $ - $ - $ - $ - $ - $ 7 $ - $ 7 Construction and other Pass $ 3,683 $ 69,283 $ 21,740 $ 15,868 $ 1,447 $ 1,668 $ 10,487 $ 124,176 Special Mention - - 848 2,332 - 243 - 3,423 Substandard - - 2,710 420 - 1,271 530 4,931 Total Construction and other $ 3,683 $ 69,283 $ 25,298 $ 18,620 $ 1,447 $ 3,182 $ 11,017 $ 132,530 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Consumer installment Pass $ 912 $ 1,399 $ 855 $ 177 $ 58 $ 3,310 $ - $ 6,711 Substandard - - 4 - - 181 - 185 Total Consumer installment $ 912 $ 1,399 $ 859 $ 177 $ 58 $ 3,491 $ - $ 6,896 Current-period gross charge-offs $ - $ - $ - $ 6 $ - $ - $ - $ 6 Total Loans $ 61,697 $ 261,125 $ 278,616 $ 198,764 $ 118,649 $ 354,944 $ 223,909 $ 1,497,704 Pass $ 61,483 $ 256,114 $ 262,759 $ 194,864 $ 118,278 $ 312,337 $ 211,505 $ 1,417,340 Special Mention - - 3,356 2,734 - 3,161 792 10,043 Substandard 214 5,011 12,501 1,166 371 39,450 11,612 70,325 Loss - - - - - (4 ) - (4 ) Total Loans $ 61,697 $ 261,125 $ 278,616 $ 198,764 $ 118,649 $ 354,944 $ 223,909 $ 1,497,704 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Amortized (Dollar amounts in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Total Commercial real estate: Owner occupied Pass $ 14,634 $ 34,850 $ 41,609 $ 25,040 $ 12,304 $ 41,976 $ 2,662 $ 173,075 Special Mention - 2,271 - - 13 799 - 3,083 Substandard - 2,356 - 1,559 146 3,326 - 7,387 Total Owner occupied $ 14,634 $ 39,477 $ 41,609 $ 26,599 $ 12,463 $ 46,101 $ 2,662 $ 183,545 Current-period gross charge-offs $ - $ - $ - $ - $ - $ 46 $ - $ 46 Non-owner occupied Pass $ 43,393 $ 95,098 $ 40,959 $ 22,707 $ 32,405 $ 127,469 $ 504 $ 362,535 Special Mention - 2,508 - - - 2,197 - 4,705 Substandard - - - - 5,237 24,569 - 29,806 Doubtful - - 647 - 3,887 - - 4,534 Total Non-owner occupied $ 43,393 $ 97,606 $ 41,606 $ 22,707 $ 41,529 $ 154,235 $ 504 $ 401,580 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Multifamily Pass $ 29,218 $ 25,776 $ 4,267 $ 10,453 $ 1,391 $ 11,231 $ 104 $ 82,440 Substandard - - - - - 66 - 66 Total Multifamily $ 29,218 $ 25,776 $ 4,267 $ 10,453 $ 1,391 $ 11,297 $ 104 $ 82,506 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate Pass $ 50,086 $ 56,180 $ 78,909 $ 39,476 $ 19,418 $ 82,441 $ 672 $ 327,182 Substandard - 127 210 - 24 1,311 - 1,672 Total Residential real estate $ 50,086 $ 56,307 $ 79,119 $ 39,476 $ 19,442 $ 83,752 $ 672 $ 328,854 Current-period gross charge-offs $ - $ - $ - $ - $ - $ 108 $ - $ 108 Commercial and industrial Pass $ 46,918 $ 43,494 $ 17,909 $ 25,143 $ 2,741 $ 6,533 $ 66,842 $ 209,580 Special Mention - - - - - - 184 184 Substandard 13 15 - 353 124 876 10,367 11,748 Loss - - - - - (4 ) - (4 ) Total Commercial and industrial $ 46,931 $ 43,509 $ 17,909 $ 25,496 $ 2,865 $ 7,405 $ 77,393 $ 221,508 Current-period gross charge-offs $ - $ - $ 75 $ - $ 6 $ 4 $ - $ 85 Home equity lines of credit Pass $ - $ 126 $ - $ 16 $ 63 $ 2,097 $ 124,001 $ 126,303 Substandard - 105 - 36 29 583 762 1,515 Total Home equity lines of credit $ - $ 231 $ - $ 52 $ 92 $ 2,680 $ 124,763 $ 127,818 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Construction and other Pass $ 55,528 $ 23,059 $ 20,246 $ 1,777 $ 5,609 $ 851 $ 9,152 $ 116,222 Special Mention - 3,573 2,371 - 265 - - 6,209 Substandard - - 420 - 1,770 - 484 2,674 Total Construction and other $ 55,528 $ 26,632 $ 23,037 $ 1,777 $ 7,644 $ 851 $ 9,636 $ 125,105 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Consumer installment Pass $ 1,810 $ 1,088 $ 324 $ 89 $ 74 $ 3,669 $ - $ 7,054 Substandard - 7 - - - 153 - 160 Total Consumer installment $ 1,810 $ 1,095 $ 324 $ 89 $ 74 $ 3,822 $ - $ 7,214 Current-period gross charge-offs $ - $ 25 $ - $ - $ - $ 38 $ - $ 63 Total Loans $ 241,600 $ 290,633 $ 207,871 $ 126,649 $ 85,500 $ 310,143 $ 215,734 $ 1,478,130 Pass $ 241,587 $ 279,671 $ 204,223 $ 124,701 $ 74,005 $ 276,267 $ 203,937 $ 1,404,391 Special Mention - 8,352 2,371 - 278 2,996 184 14,181 Substandard 13 2,610 630 1,948 7,330 30,884 11,613 55,028 Doubtful - - 647 - 3,887 - - 4,534 Loss - - - - - (4 ) - (4 ) Total Loans $ 241,600 $ 290,633 $ 207,871 $ 126,649 $ 85,500 $ 310,143 $ 215,734 $ 1,478,130 Collateral-dependent Loans The following table presents individually analyzed and collateral-dependent loans by class of loans (in thousands): June 30, 2024 Type of Collateral (Dollar amounts in thousands) Real Estate Blanket Lien Investment/Cash Other Total Commercial real estate: Owner occupied $ 4,562 $ - $ - $ - $ 4,562 Non-owner occupied 5,878 - - 8,040 13,918 Commercial and industrial - 14,948 - 1,213 16,161 Construction and other 2,710 - - - 2,710 Total $ 13,150 $ 14,948 $ - $ 9,253 $ 37,351 December 31, 2023 Type of Collateral (Dollar amounts in thousands) Real Estate Blanket Lien Investment/Cash Other Total Commercial real estate: Non-owner occupied $ 8,150 $ - $ - $ - $ 8,150 Total $ 8,150 $ - $ - $ - $ 8,150 Nonperforming and Past Due Loans The following tables present the aging of the recorded investment in past-due loans by class of loans (in thousands): 30-59 Days 60-89 Days 90 Days+ Total Total June 30, 2024 Current Past Due Past Due Past Due Past Due Loans Commercial real estate: Owner occupied $ 182,350 $ 353 $ - $ 106 $ 459 $ 182,809 Non-owner occupied 376,655 1,385 - 7,608 8,993 385,648 Multifamily 86,951 - - - - 86,951 Residential real estate 333,303 2,507 1,181 130 3,818 337,121 Commercial and industrial 233,390 252 655 405 1,312 234,702 Home equity lines of credit 130,238 198 100 511 809 131,047 Construction and other 132,530 - - - - 132,530 Consumer installment 6,864 32 - - 32 6,896 Total $ 1,482,281 $ 4,727 $ 1,936 $ 8,760 $ 15,423 $ 1,497,704 30-59 Days 60-89 Days 90 Days+ Total Total December 31, 2023 Current Past Due Past Due Past Due Past Due Loans Commercial real estate: Owner occupied $ 183,242 $ 197 $ - $ 106 $ 303 $ 183,545 Non-owner occupied 397,964 3,616 - - 3,616 401,580 Multifamily 82,440 - - 66 66 82,506 Residential real estate 326,224 1,366 1,010 254 2,630 328,854 Commercial and industrial 221,304 - 146 58 204 221,508 Home equity lines of credit 126,894 447 180 297 924 127,818 Construction and other 125,040 65 - - 65 125,105 Consumer installment 7,138 69 - 7 76 7,214 Total $ 1,470,246 $ 5,760 $ 1,336 $ 788 $ 7,884 $ 1,478,130 The following tables present the recorded investment in nonaccrual loans and loans 90 June 30, 2024 Nonaccrual Nonaccrual Loans Past (Dollar amounts in thousands) with no with Total Due Over 90 Days Total ACL ACL Nonaccrual Still Accruing Nonperforming Commercial real estate: Owner occupied $ - $ 238 $ 238 $ - $ 238 Non-owner occupied 8,416 3,616 12,032 - 12,032 Multifamily - - - - - Residential real estate - 1,173 1,173 - 1,173 Commercial and industrial 345 879 1,224 - 1,224 Home equity lines of credit - 1,013 1,013 96 1,109 Consumer installment 181 4 185 - 185 Total $ 8,942 $ 6,923 $ 15,865 $ 96 $ 15,961 December 31, 2023 Nonaccrual Nonaccrual Loans Past (Dollar amounts in thousands) with no with Total Due Over 90 Days Total ACL ACL Nonaccrual Still Accruing Nonperforming Commercial real estate: Owner occupied $ - $ 252 $ 252 $ - $ 252 Non-owner occupied 4,534 3,616 8,150 - 8,150 Multifamily - 66 66 - 66 Residential real estate - 1,170 1,170 - 1,170 Commercial and industrial - 223 223 - 223 Home equity lines of credit - 856 856 - 856 Consumer installment 153 7 160 - 160 Total $ 4,687 $ 6,190 $ 10,877 $ - $ 10,877 Interest income that would have been recorded had these loans not three six June 30, 2024 three six June 30, 2023 Modifications to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, 2022 02, may may 90 12 The table below details the amortized cost basis of the loans modified to borrowings experiencing financial difficulty, disaggregated by class of loans and type of concessions granted, and the financial effect of the modifications: June 30, 2024 Modifications Payment Interest Rate Interest Rate Percentage of Deferral Reduction Reduction Total Loans Payment Term and Term and Term and Principal Held for Deferral Extension Extension Past Due Forgiveness Total Investment Commercial real estate: Non-owner occupied $ - $ 14,854 $ 2,507 $ - $ - $ 17,361 1.2 % Construction and other - 2,221 - - - 2,221 0.1 % Total $ - $ 17,075 $ 2,507 $ - $ - $ 19,582 1.3 % June 30, 2023 Modifications Payment Interest Rate Interest Rate Percentage of Deferral Reduction Reduction Total Loans Payment Term and Term and Term and Principal Held for Deferral Extension Extension Past Due Forgiveness Total Investment Commercial real estate: Non-owner occupied $ - $ 14,924 $ 2,507 $ - $ - $ 17,431 1.3 % Commercial and industrial - 86 - - - 86 0.0 % Total $ - $ 15,010 $ 2,507 $ - $ - $ 17,517 1.3 % As of June 30, 2024 no June 30, 2024 not June 30, 2024 June 30, 2024 December 31, 2023 Allowance for Credit Losses: Unfunded Commitments Upon adoption of ASU 2016 13 January 1, 2023, June 30, 2024 December 31, 2023 |