Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Loans

v3.23.3
Note 3 - Loans
9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 3 LOANS

 

Portfolio loans were as follows (dollars in thousands):

 

   

September 30,

   

December 31,

 
   

2023

   

2022

 

Commercial and industrial

  $ 488,224     $ 441,716  
                 

Commercial real estate:

               

Residential developed

    5,040       7,234  

Unsecured to residential developers

    800        

Vacant and unimproved

    37,084       36,270  

Commercial development

    89       103  

Residential improved

    116,407       112,791  

Commercial improved

    257,673       259,281  

Manufacturing and industrial

    150,192       121,924  

Total commercial real estate

    567,285       537,603  

Consumer:

               

Residential mortgage

    180,420       139,148  

Unsecured

    113       121  

Home equity

    51,798       56,321  

Other secured

    3,450       2,839  

Total consumer

    235,781       198,429  

Total loans

    1,291,290       1,177,748  

Allowance for credit losses

    (17,001 )     (15,285 )
    $ 1,274,289     $ 1,162,463  

 

The totals above are shown net of deferred fees and costs. Deferred fees on loans totaled $1.4 million and $1.3 million at September 30, 2023 and December 31, 2022, respectively. Deferred costs on loans totaled $1.5 million and $1.4 million at September 30, 2023 and December 31, 2022, respectively.

 

 

 

Activity in the allowance for credit losses by portfolio segment was as follows (dollars in thousands):

 

   

Commercial

                                 
   

and

   

Commercial

                         

Three months ended September 30, 2023

 

Industrial

   

Real Estate

   

Consumer

   

Unallocated

   

Total

 

Beginning balance

  $ 7,011     $ 6,928     $ 3,099     $ 71     $ 17,109  

Charge-offs

                (41 )           (41 )

Recoveries

    8       50       25             83  

Provision for credit losses (1)

    (398 )     114       177       (43 )     (150 )

Ending Balance

  $ 6,621     $ 7,092     $ 3,260     $ 28     $ 17,001  

 

   

Commercial

                                 
   

and

   

Commercial

                         

Nine months ended September 30, 2023

 

Industrial

   

Real Estate

   

Consumer

   

Unallocated

   

Total

 

Beginning balance, prior to adoption of ASU 2016-03

  $ 5,596     $ 7,180     $ 2,458     $ 51     $ 15,285  

Impact of adoption of ASU 2016-03

    1,299       (212 )     389             1,476  

Charge-offs

                (84 )           (84 )

Recoveries

    24       56       94             174  

Provision for credit losses (1)

    (298 )     68       403       (23 )     150  

Ending Balance

  $ 6,621     $ 7,092     $ 3,260     $ 28     $ 17,001  

 

   

Commercial

                                 
   

and

   

Commercial

                         

Three months ended September 30, 2022

 

Industrial

   

Real Estate

   

Consumer

   

Unallocated

   

Total

 

Beginning balance

  $ 5,256     $ 7,022     $ 2,316     $ 37     $ 14,631  

Charge-offs

                (46 )           (46 )

Recoveries

    175       5       56             236  

Provision for credit losses (1)

    179       (147 )     (14 )     (18 )      

Ending Balance

  $ 5,610     $ 6,880     $ 2,312     $ 19     $ 14,821  

 

   

Commercial

                                 
   

and

   

Commercial

                         

Nine months ended September 30, 2022

 

Industrial

   

Real Estate

   

Consumer

   

Unallocated

   

Total

 

Beginning balance

  $ 5,176     $ 8,051     $ 2,633     $ 29     $ 15,889  

Charge-offs

    (38 )           (103 )           (141 )

Recoveries

    185       276       112             573  

Provision for credit losses (1)

    287       (1,447 )     (330 )     (10 )     (1,500 )

Ending Balance

  $ 5,610     $ 6,880     $ 2,312     $ 19     $ 14,821  

 

 

(1)

Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.

 

 

 

The following table presents gross chargeoffs for the nine months ended September 30, 2023 by portfolio class and origination year (dollars in thousands):

 

   

Term Loans By Origination Year

                 
                                                   

Revolving

         

September 30, 2023

 

2023

   

2022

   

2021

   

2020

   

2019

   

Prior

   

Loans

   

Total

 
                                                                 
                                                                 

Commercial and industrial

  $     $     $     $     $     $     $     $  

Commercial development

                                               

Commercial improved

                                               

Manufacturing and industrial

                                               

Residential development

                                               

Residential improved

                                               

Vacant and unimproved

                                               

Total commercial

                                               
                                                                 

Residential mortgage

                                               

Consumer unsecured

                                               

Home equity

                                               

Other

                                        84       84  

Total consumer

                                        84       84  
                                                                 

Total loans

                                        84       84  

 

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Under CECL for collateral dependent loans, the Company has adopted the practical expedient to measure the allowance on the fair value of collateral.

 

The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and the loan's amortized cost. If the fair value of the collateral exceeds the loan's amortized cost, no allowance is necessary. The Company's policy is to obtain appraisals on any significant pieces of collateral. For real estate collateral that is in industries that are undergoing significant stress, or properties that are specialized use or have limited marketability, higher discounts are applied in determining fair value.

 

 

 

There have been no significant changes to the types of collateral securing our collateral dependent loans.

 

The amortized cost of collateral-dependent loans by class as of September 30, 2023 was as follows (dollars in thousands):

 

   

Collateral Type

         
                   

Allowance

 

September 30, 2023

 

Real Estate

   

Other

   

Allocated

 
                         

Commercial and industrial

  $ 584     $     $  

Commercial real estate:

                       

Residential developed

                 

Unsecured to residential developers

                 

Vacant and unimproved

                 

Commercial development

                 

Residential improved

    27              

Commercial improved

    296              

Manufacturing and industrial

    546              
      869              

Consumer

                       

Residential mortgage

                 

Unsecured

                 

Home equity

                 

Other secured

                 

Consumer

                 

Total

  $ 1,453     $     $  

 

The following table presents the balance in the allowance for credit losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands):

 

   

Commercial

                                 
   

and

   

Commercial

                         

December 31, 2022

 

Industrial

   

Real Estate

   

Consumer

   

Unallocated

   

Total

 

Allowance for credit losses:

                                       

Ending allowance attributable to loans:

                                       

Individually reviewed for impairment

  $ 55     $ 20     $ 220     $     $ 295  

Collectively evaluated for impairment

    5,541       7,160       2,238       51       14,990  

Total ending allowance balance

  $ 5,596     $ 7,180     $ 2,458     $ 51     $ 15,285  

Loans:

                                       

Individually reviewed for impairment

  $ 3,603     $ 518     $ 2,886     $     $ 7,007  

Collectively evaluated for impairment

    438,113       537,085       195,543             1,170,741  

Total ending loans balance

  $ 441,716     $ 537,603     $ 198,429     $     $ 1,177,748  

 

 

 

The following table presents loans individually evaluated for impairment by class of loans as of  December 31, 2022 (dollars in thousands):

 

   

Unpaid

                   

Year-To-Date

 
   

Principal

   

Recorded

   

Allowance

   

Average Recorded

 

December 31, 2022

 

Balance

   

Investment

   

Allocated

   

Investment

 

With no related allowance recorded:

                               

Commercial and industrial

  $ 3,278     $ 3,278     $     $ 2,338  

Commercial real estate:

                               

Residential improved

    31       31             33  
      31       31             33  

Consumer

                       

Total with no related allowance recorded

  $ 3,309     $ 3,309     $     $ 2,371  
                                 

With an allowance recorded:

                               

Commercial and industrial

  $ 325     $ 325     $ 55     $ 365  

Commercial real estate:

                               

Commercial improved

    307       307       9       313  

Manufacturing and industrial

    180       180       11       185  
      487       487       20       498  

Consumer:

                               

Residential mortgage

    2,653       2,653       202       2,619  

Unsecured

    29       29       2       29  

Home equity

    204       204       16       234  
      2,886       2,886       220       2,882  

Total with an allowance recorded

  $ 3,698     $ 3,698     $ 295     $ 3,745  

Total

  $ 7,007     $ 7,007     $ 295     $ 6,116  

 

 

 

The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2023 and December 31, 2022:

 

                           

Over 90

   

Total

 
   

Nonaccrual with

   

Nonaccrual with

           

days

   

Nonperforming

 

September 30, 2023

 

No Allowance

   

Allowance

   

Total Nonaccrual

   

Accruing

   

Loans

 

Commercial and industrial

  $     $     $     $     $  
                                         

Commercial real estate:

                                       

Residential developed

                             

Unsecured to residential developers

                             

Vacant and unimproved

                             

Commercial development

                             

Residential Improved

                             

Commercial improved

                             

Manufacturing and industrial

                             
                               

Consumer:

                                       

Residential mortgage

          1       1             1  

Unsecured

                             

Home equity

                             

Other secured

                             
            1       1             1  

Total

  $     $ 1     $ 1     $     $ 1  

 

 

 

                           

Over 90

   

Total

 
   

Nonaccrual with

   

Nonaccrual with

           

days

   

Nonperforming

 

December 31, 2022

 

No Allowance

   

Allowance

   

Total Nonaccrual

   

Accruing

   

Loans

 

Commercial and industrial

  $     $     $     $     $  
                                         

Commercial real estate:

                                       

Residential developed

                             

Unsecured to residential developers

                             

Vacant and unimproved

                             

Commercial development

                             

Residential improved

                             

Commercial improved

                             

Manufacturing and industrial

                             
                               

Consumer:

                                       

Residential mortgage

          78       78             78  

Unsecured

                             

Home equity

                             

Other secured

                             
            78       78             78  

Total

  $     $ 78     $ 78     $     $ 78  

 

No interest income was recognized on nonaccrual loans during the three and nine months ended September 30, 2023.

 

 

 

The following table presents the aging of the recorded investment in past due loans as of September 30, 2023 and  December 31, 2022 by class of loans (dollars in thousands):

 

   

30-90

   

Greater Than

   

Total

   

Loans Not

         

September 30, 2023

 

Days

   

90 Days

   

Past Due

   

Past Due

   

Total

 

Commercial and industrial

  $     $     $     $ 488,224     $ 488,224  

Commercial real estate:

                                       

Residential developed

                      5,040       5,040  

Unsecured to residential developers

                      800       800  

Vacant and unimproved

                      37,084       37,084  

Commercial development

                      89       89  

Residential improved

                      116,407       116,407  

Commercial improved

                      257,673       257,673  

Manufacturing and industrial

                      150,192       150,192  
                        567,285       567,285  

Consumer:

                                       

Residential mortgage

                      180,420       180,420  

Unsecured

                      113       113  

Home equity

                      51,798       51,798  

Other secured

                      3,450       3,450  
                        235,781       235,781  

Total

  $     $     $     $ 1,291,290     $ 1,291,290  

 

   

30-90

   

Greater Than

   

Total

   

Loans Not

         

December 31, 2022

 

Days

   

90 Days

   

Past Due

   

Past Due

   

Total

 

Commercial and industrial

  $     $     $     $ 441,716     $ 441,716  

Commercial real estate:

                                       

Residential developed

                      7,234       7,234  

Unsecured to residential developers

                             

Vacant and unimproved

                      36,270       36,270  

Commercial development

                      103       103  

Residential improved

                      112,791       112,791  

Commercial improved

    71             71       259,210       259,281  

Manufacturing and industrial

                      121,924       121,924  
      71             71       537,532       537,603  

Consumer:

                                       

Residential mortgage

          77       77       139,071       139,148  

Unsecured

                      121       121  

Home equity

    24             24       56,297       56,321  

Other secured

                      2,839       2,839  
      24       77       101       198,328       198,429  

Total

  $ 95     $ 77     $ 172     $ 1,177,576     $ 1,177,748  

 

 

 

At times, the Company will modify terms of a loan to allow the customer to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow.  These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit.  For commercial loans, these modifications typically include an interest only period and, in some cases, a lowering of the interest rate on the loan.  In some cases, the modification will include separating the note into two notes with the first note structured to be supported by current cash flows and collateral, and the second note made for the remaining unsecured debt.  The second note is charged off immediately and collected only after the first note is paid in full.  This modification type is commonly referred to as an A-B note structure.  For consumer mortgage loans, the restructuring typically includes a lowering of the interest rate to provide payment and cash flow relief.  For each restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt.  An analysis is also performed to determine whether the restructured loan should be on accrual status.  Generally, if the loan is on accrual status at the time of restructure, it will remain on accrual status after the restructuring.  In some cases, a nonaccrual loan may be placed on accrual status at restructuring if the loan’s actual payment history demonstrates it would have cash flowed under the restructured terms.  After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accrual status. 

 

As with other individually reviewed loans, an allowance for credit loss is estimated for each such modification made to borrowers experiencing financial difficulty based on the most likely source of repayment for each loan. For commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral, less estimated costs to sell. For individually reviewed commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of such loans, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial modifications to borrowers experiencing financial difficulty where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate.

 

The following table presents information regarding modifications to borrowers experiencing financial difficulty as of September 30, 2023 (dollars in thousands):

 

   

September 30, 2023

 
           

Outstanding

   

Percentage to

 
   

Number of

   

Recorded

   

Total

 
   

Loans

   

Balance

   

Loans

 

Commercial and industrial

    3     $ 266       0.05 %

Commercial real estate

    3       493       0.09 %

Consumer

    31       2,690       1.14 %
      37     $ 3,449       0.27 %

 

 

 

The following table presents information related to modifications to borrowers experiencing financial difficulty as of September 30, 2023. The table presents the amount of accruing modifications that were on nonaccrual status prior to the modification, accruing at the time of modification and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the modified terms as of the period reported (dollars in thousands):

 

   

September 30,

 
   

2023

 

Accruing - nonaccrual at modification

  $  

Accruing - accruing at modification

    3,449  

Accruing - upgraded to accruing after six consecutive payments

     
    $ 3,449  

 

There was one commercial loan modification made to a borrower experiencing financial difficulty during the three month period ended  September 30, 2023. The pre-modification balance of the loan was $584,000 and there was no writedown upon modification. There was one consumer loan and one commercial loan modification made to borrowers experiencing financial difficulty during the nine month period ended September 30, 2023.  The pre-modification balance of these loans totaled $618,000 and there were no writedowns upon modification.  There was one consumer loan modification made to a borrower experiencing financial difficulty during the three month period ended September 30, 2022.  The pre-modification balance of this loan totaled $278,000 and there was no writedown upon modification.  There were two consumer loan modifications during the nine month period ended September 30, 2022.  The pre-modification balance of these loans totaled $377,000 and there were no writedowns upon modification.    

 

There were no defaults on loans with modifications to borrowers experiencing financial difficulty during the three and nine month periods ended September 30, 2023 and the balance of loans that became delinquent by more than 90 days past due or that were transferred to nonaccrual within 12 months of modification were not material.

 

 

 

Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes commercial loans individually and classifies these relationships by credit risk grading. The Company uses an eight point grading system, with grades 5 through 8 being considered classified, or watch, credits. The higher the risk grade, the stronger likelihood of loss. At grade 7, a loan is placed on nonaccrual status. All commercial loans are assigned a grade at origination, at each renewal or any amendment. When a credit is first downgraded to a watch credit (either through renewal, amendment, loan officer identification or the loan review process), an Administrative Loan Review (“ALR”) is generated by the credit department and the loan officer. All watch credits have an ALR completed quarterly which analyzes the collateral position and cash flow of the borrower and its guarantors. Management meets quarterly with loan officers to discuss each of these credits in detail and to help formulate solutions where progress has stalled. When necessary, the loan officer proposes changes to the assigned loan grade as part of the ALR. Additionally, Loan Review reviews all loan grades upon origination, renewal or amendment and again as loans are selected though the loan review process. The credit will stay on the ALR until either its grade has improved to a 4 or the credit relationship is at a zero balance. The Company uses the following definitions for the risk grades in ascending order of likelihood of loss:

 

1. Excellent - Loans supported by extremely strong financial condition or secured by the Bank’s own deposits. Minimal risk to the Bank and the probability of serious rapid financial deterioration is extremely small.

 

2. Above Average - Loans supported by sound financial statements that indicate the ability to repay or borrowings secured (and margined properly) with marketable securities. Nominal risk to the Bank and probability of serious financial deterioration is highly unlikely. The overall quality of these credits is very high.

 

3. Good Quality - Loans supported by satisfactory asset quality and liquidity, good debt capacity coverage, and good management in all critical positions. Loans are secured by acceptable collateral with adequate margins. There is a slight risk of deterioration if adverse market conditions prevail.

 

4. Acceptable Risk - Loans carrying an acceptable risk to the Bank, which may be slightly below average quality. The borrower has limited financial strength with considerable leverage. There is some probability of deterioration if adverse market conditions prevail. These credits should be monitored closely by the Relationship Manager.

 

5. Marginally Acceptable - Loans are of marginal quality with above normal risk to the Bank. The borrower shows acceptable asset quality but very little liquidity with high leverage. There is inconsistent earning performance without the ability to sustain adverse market conditions. The primary source of repayment is questionable, but the secondary source of repayment still remains an option. Very close attention by the Relationship Manager and management is needed.

 

6. Substandard - Loans are inadequately protected by the net worth and paying capacity of the borrower or the collateral pledged. The primary and secondary sources of repayment are questionable. Heavy debt condition may be evident and volume and earnings deterioration may be underway. It is possible that the Bank will sustain some loss if the deficiencies are not immediately addressed and corrected.

 

7. Doubtful - Loans supported by weak or no financial statements, as well as the ability to repay the entire loan, are questionable. Loans in this category are normally characterized less than adequate collateral, insolvent, or extremely weak financial condition. A loan classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses makes collection or liquidation in full highly questionable. The possibility of loss is extremely high, however, activity may be underway to minimize the loss or maximize the recovery.

 

8. Loss - Loans are considered uncollectible and of little or no value as a bank asset.

 

 

 

The following table summarizes loan ratings by grade for commercial loans (dollars in thousands):

 

   

Term Loans Amortized Cost Basis By Origination Year and Risk Grades

                 

September 30, 2023

 

2023

   

2022

   

2021

   

2020

   

2019

   

Prior

   

Revolving

   

Total

 

Commercial

                                                               

Commercial and industrial

                                                               

Grades 1-3

  $ 42,102     $ 56,819     $ 16,680     $ 5,488     $ 12,718     $ 41,434     $ 66,332     $ 241,573  

Grade 4

    55,344       40,840       22,181       14,968       7,699       24,553       72,555       238,140  

Grade 5

          415       59       284       72       1,232       5,820       7,882  

Grade 6

    584             20                   25             629  

Grade 7-8

                                               
    $ 98,030     $ 98,074     $ 38,940     $ 20,740     $ 20,489     $ 67,244     $ 144,707     $ 488,224  

Residential development

                                                               

Grades 1-3

  $     $     $     $     $     $     $     $  

Grade 4

    399       612       679                         3,350       5,040  

Grade 5

                                               

Grade 6

                                               

Grade 7-8

                                               
    $ 399     $ 612     $ 679     $     $     $     $ 3,350     $ 5,040  

Unsecured to residential developers

                                                               

Grades 1-3

  $     $     $     $     $     $ 800     $     $ 800  

Grade 4

                                               

Grade 5

                                               

Grade 6

                                               

Grade 7-8

                                               
    $     $     $     $     $     $ 800     $     $ 800  

Vacant and unimproved

                                                               

Grades 1-3

  $ 449     $ 4,842     $ 8,144     $ 6,874     $     $ 83     $ 150     $ 20,542  

Grade 4

    1,548       2,498       2,671       7,987       157       110       239       15,210  

Grade 5

    1,332                                           1,332  

Grade 6

                                               

Grade 7-8

                                               
    $ 3,329     $ 7,340     $ 10,815     $ 14,861     $ 157     $ 193     $ 389     $ 37,084  

Commercial development

                                                               

Grades 1-3

  $     $ 89     $     $     $     $     $     $ 89  

Grade 4

                                               

Grade 5

                                               

Grade 6

                                               

Grade 7-8

                                               
    $     $ 89     $     $     $     $     $     $ 89  

Residential improved

                                                               

Grades 1-3

  $ 4,635     $ 12,320     $ 1,359     $ 8,797     $ 251     $ 5,225     $ 789     $ 33,376  

Grade 4

    974       553       33,253       1,795       7,092       15,454       23,882       83,003  

Grade 5

                28                               28  

Grade 6

                                               

Grade 7-8

                                               
    $ 5,609     $ 12,873     $ 34,640     $ 10,592     $ 7,343     $ 20,679     $ 24,671     $ 116,407  

Commercial improved

                                                               

Grades 1-3

  $ 12,533     $ 22,410     $ 51,324     $ 19,385     $ 14,513     $ 15,695     $ 8,582     $ 144,442  

Grade 4

    6,353       34,017       16,729       31,082       16,674       2,080       443       107,378  

Grade 5

    269       26                   2,164       3,098             5,557  

Grade 6

                296                               296  

Grade 7-8

                                               
    $ 19,155     $ 56,453     $ 68,349     $ 50,467     $ 33,351     $ 20,873     $ 9,025     $ 257,673  

Manufacturing and industrial

                                                               

Grades 1-3

  $ 7,062     $ 35,006     $ 5,425     $ 6,672     $ 4,240     $ 3,824     $ 880     $ 63,109  

Grade 4

    16,712       26,539       12,692       7,603       5,641       13,138       1,665       83,990  

Grade 5

    170                               305             475  

Grade 6

                                  2,618             2,618  

Grade 7-8

                                               
    $ 23,944     $ 61,545     $ 18,117     $ 14,275     $ 9,881     $ 19,885     $ 2,545     $ 150,192  
                                                                 

Total Commercial

                                                               

Grades 1-3

  $ 66,781     $ 131,486     $ 82,932     $ 47,216     $ 31,722     $ 67,061     $ 76,733     $ 503,931  

Grade 4

    81,330       105,059       88,205       63,435       37,263       55,335       102,134       532,761  

Grade 5

    1,771       441       87       284       2,236       4,635       5,820       15,274  

Grade 6

    584             316                   2,643             3,543  

Grade 7-8

                                               
    $ 150,466     $ 236,986     $ 171,540     $ 110,935     $ 71,221     $ 129,674     $ 184,687     $ 1,055,509  

 

 

 

As of December 31, 2022, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands):

 

December 31, 2022

 

1

   

2

   

3

   

4

   

5

   

6

   

7

   

8

   

Total

 

Commercial and industrial

  $ 15,040     $ 21,451     $ 175,762     $ 220,987     $ 8,309     $ 167     $     $     $ 441,716  
                                                                         

Commercial real estate:

                                                                       

Residential developed

                      7,234                               7,234  

Unsecured to residential developers

                                                     

Vacant and unimproved

          1,231       18,406       16,633                               36,270  

Commercial development

                103                                     103  

Residential improved

                25,585       87,176       30                         112,791  

Commercial improved

          17,802       83,769       151,641       5,762       307                   259,281  

Manufacturing & industrial

          11,422       32,977       73,566       1,646       2,313                   121,924  
    $ 15,040     $ 51,906     $ 336,602     $ 557,237     $ 15,747     $ 2,787     $     $     $ 979,319  

 

 

 

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in consumer loans by year of origination and based on delinquency status at September 30, 2023 (dollars in thousands):

 

   

Term Loans Amortized Cost Basis By Origination Year

                 

September 30, 2023

 

2023

   

2022

   

2021

   

2020

   

2019

   

Prior

   

Revolving

   

Total

 

Retail

                                                               

Residential mortgage

                                                               

Performing

  $ 57,860     $ 40,375     $ 26,324     $ 9,800     $ 4,936     $ 29,136     $ 11,989     $ 180,420  

Nonperforming

                                               
    $ 57,860     $ 40,375     $ 26,324     $ 9,800     $ 4,936     $ 29,136     $ 11,989     $ 180,420  

Consumer unsecured

                                                               

Performing

  $     $     $     $ 12     $ 13     $     $ 88     $ 113  

Nonperforming

                                               
    $     $     $     $ 12     $ 13     $     $ 88     $ 113  

Home equity

                                                               

Performing

  $ 256     $ 701     $ 223     $ 461     $ 219     $ 1,989     $ 47,949     $ 51,798  

Nonperforming

                                               
    $ 256     $ 701     $ 223     $ 461     $ 219     $ 1,989     $ 47,949     $ 51,798  

Other

                                                               

Performing

  $ 1,658     $ 745     $ 607     $ 251     $ 50     $ 139     $     $ 3,450  

Nonperforming

                                               
    $ 1,658     $ 745     $ 607     $ 251     $ 50     $ 139     $     $ 3,450  
                                                                 

Total Retail

  $ 59,774     $ 41,821     $ 27,154     $ 10,524     $ 5,218     $ 31,264     $ 60,026     $ 235,781  

 

The following table presents the recorded investment in consumer loans based on payment status at  December 31, 2022 (dollars in thousands):

 

   

Residential

   

Consumer

   

Home

   

Consumer

 

December 31, 2022

 

Mortgage

   

Unsecured

   

Equity

   

Other

 

Performing

  $ 139,071     $ 121     $ 56,321     $ 2,839  

Nonperforming

    77                    

Total

  $ 139,148     $ 121     $ 56,321     $ 2,839