Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Allowance for Credit Losses [Abstract]


	March 31,		% Total			December 31,	% Total
(dollars in thousands)	2024		Loans			2023	Loans
Commercial loans	$	170,319		9.8	$	154,189		9.0
Commercial real estate:
Construction		181,107		10.4		178,756		10.5
Owner occupied		353,133		20.3		355,236		20.8
Non-owner occupied		472,560		27.2		455,171		26.7
Residential real estate:
Construction		28,239		1.6		27,383		1.6
Revolving		103,614		6.0		107,968		6.3
Multi family		128,918		7.4		130,666		7.7
Other		289,180		16.6		283,387		16.6
Consumer		12,199		0.7		12,852		0.8
Gross Loans		1,739,269		100.0		1,705,608		100.0
Less: Allowance for credit losses		21,645				20,506
Net Loans	$	1,717,624			$	1,685,102

Summary of Allowance for Credit Losses by Segment

The following tables presents the activity in the allowance for credit losses by segment as of and for the three months ended March 31 2024 and March 31, 2023.


(dollars in thousands)		Balance, January 1, 2024		Provision for credit losses		Loan charge-offs		Loan recoveries		Balance, March 31, 2024

Commercial loans	$	2,254	$	938	$	(56)	$	356	$	3,492
Commercial real estate:
Construction		3,658		(596)		0		0		3,062
Owner occupied		4,096		36		(66)		0		4,066
Non-owner occupied		6,279		32		0		0		6,311
Residential real estate:
Construction		82		9		(11)		0		80
Revolving		475		(123)		0		3		355
Multi family		1,519		251		0		0		1,770
Other		1,986		403		(62)		64		2,391
Consumer		157		(59)		(9)		29		118
Total	$	20,506	$	891	$	(204)	$	452	$	21,645

(dollars in thousands)		Balance, January 1, 2023		Impact of adopting ASC 326		Provision for credit losses		Loan charge-offs		Loan recoveries		Balance, March 31, 2023

Commercial loans	$	4,783	$	(235)	$	(904)	$	(64)	$	116	$	3,697
Commercial real estate:
Construction		1,829		1,121		590		0		0		3,539
Owner occupied		4,341		(69)		333		(683)		33		3,956
Non-owner occupied		6,387		(468)		249		0		0		6,168
Residential real estate:
Construction		230		(144)		(6)		0		0		79
Revolving		417		192		58		(27)		0		641
Multi family		1,205		194		25		0		0		1,424
Other		1,511		169		167		0		13		1,859
Consumer		33		167		(20)		(4)		5		181
Total	$	20,736	$	927	$	492	$	(778)	$	167	$	21,544

Summary of Non-Accrual Loans


		With a		Without a		Related		Interest Income
(dollars in thousands)		Related Allowance		Related Allowance		Allowance		Three months ended
March 31, 2024
Commercial loans	$	3,010	$	150	$	1,753	$	175
Commercial real estate:
Construction		0		35		0		0
Owner occupied		733		613		115		0
Non-owner occupied		0		155		0		4
Residential real estate:
Construction		0		264		0		0
Revolving		0		474		0		2
Multi family		0		0		0		0
Other		0		1,542		0		0
Consumer		0		0		0		0
Total	$	3,743	$	3,233	$	1,868	$	181

March 31, 2023
Commercial loans	$	1,854	$	2,910	$	1,629	$	245
Commercial real estate:
Construction		0		0		0		107
Owner occupied		0		2,241		0		42
Non-owner occupied		0		0		0		0
Residential real estate:
Construction		0		282		0		0
Revolving		209		428		152		7
Multi family		0		0		0		0
Other		0		710		0		0
Consumer		0		0		0		0
Total	$	2,063	$	6,571	$	1,781	$	401

December 31, 2023
Commercial loans	$	1,000	$	513	$	500	$	663
Commercial real estate:
Construction		0		38		0		107
Owner occupied		463		0		56		401
Non-owner occupied		0		205		0		0
Residential real estate:
Construction		0		0		0		36
Revolving		0		439		0		35
Multi family		0		0		0		0
Other		0		951		0		38
Consumer		0		0		0		0
Total	$	1,463	$	2,146	$	556	$	1,280

Summary of Loan Risk Ratings by Loan Class


	Term Loans Amortized Cost Basis by Origination Year															Revolving Loans
														Revolving Loans		converted to Term
														Amortized Cost		Loans Amortized
(dollars in thousands)		2024		2023		2022		2021		2020		Prior		Basis		Cost Basis		Total
Commercial loans
Pass	$	15,381	$	18,394	$	39,744	$	11,115	$	3,737	$	18,563	$	50,399	$	0	$	157,333
Special Mention		0		1,669		59		145		0		502		591		0		2,966
Substandard		0		0		391		2,364		0		959		3,146		0		6,860
Nonaccrual		0		0		0		258		0		1,040		1,862		0		3,160
Total		15,381		20,063		40,194		13,882		3,737		21,064		55,998		0		170,319
Gross write-offs		0		(8)		(12)		0		0		0		(36)		0		(56)

Commercial real estate:
Construction
Pass	$	9,449	$	57,045	$	55,381	$	20,535	$	11,720	$	15,713	$	6,707	$	0	$	176,550
Special Mention		0		0		3,259		0		0		0		0		0		3,259
Substandard		0		0		596		0		667		0		0		0		1,263
Nonaccrual		0		0		0		0		0		35		0		0		35
Total		9,449		57,045		59,236		20,535		12,387		15,748		6,707		0		181,107
Gross write-offs		0		0		0		0		0		0		0		0		0

Owner occupied
Pass	$	2,029	$	41,133	$	58,604	$	75,779	$	23,207	$	117,929	$	17,318	$	0	$	335,999
Special Mention		0		950		0		0		0		3,187		0		0		4,137
Substandard		0		237		599		1,371		2,482		6,083		879		0		11,651
Nonaccrual		0		0		0		0		779		484		83		0		1,346
Total		2,029		42,320		59,203		77,150		26,468		127,683		18,280		0		353,133
Gross write-offs		0		0		0		0		0		0		(66)		0		(66)

Non-owner occupied
Pass	$	12,532	$	36,981	$	135,945	$	110,661	$	52,840	$	109,877	$	1,595	$	0	$	460,431
Special Mention		0		0		0		0		9,921		0		0		0		9,921
Substandard		0		0		0		1,181		0		872		0		0		2,053
Nonaccrual		0		0		0		0		0		155		0		0		155
Total		12,532		36,981		135,945		111,842		62,761		110,904		1,595		0		472,560
Gross write-offs		0		0		0		0		0		0		0		0		0

Residential real estate:
Construction
Pass	$	1,257	$	15,641	$	5,493	$	1,216	$	958	$	1,528	$	1,882	$	0	$	27,975
Special Mention		0		0		0		0		0		0		0		0		0
Substandard		0		0		0		0		0		0		0		0		0

Nonaccrual		0		0		0		0		0		264		0		0		264
Total		1,257		15,641		5,493		1,216		958		1,792		1,882		0		28,239
Gross write-offs		0		0		0		0		0		(11)		0		0		(11)

Revolving
Pass	$	821	$	10,405	$	15,136	$	990	$	304	$	2,380	$	72,806	$	0	$	102,842
Special Mention		0		0		0		0		0		0		0		0		0
Substandard		0		0		0		0		0		0		298		0		298
Nonaccrual		71		0		34		0		0		0		369		0		474
Total		892		10,405		15,170		990		304		2,380		73,473		0		103,614
Gross write-offs		0		0		0		0		0		0		0		0		0

Multi family
Pass	$	0	$	5,989	$	34,265	$	33,091	$	19,344	$	31,536	$	989	$	0	$	125,214
Special Mention		0		0		0		0		0		0		0		0		0
Substandard		0		0		0		0		0		3,704		0		0		3,704
Nonaccrual		0		0		0		0		0		0		0		0		0
Total		0		5,989		34,265		33,091		19,344		35,240		989		0		128,918
Gross write-offs		0		0		0		0		0		0		0		0		0

Other
Pass	$	10,960	$	64,990	$	60,399	$	42,093	$	37,062	$	69,751	$	736	$	0	$	285,991
Special Mention		0		0		0		80		49		905		42		0		1,076
Substandard		0		0		101		0		129		341		0		0		571
Nonaccrual		0		0		725		299		0		518		0		0		1,542
Total		10,960		64,990		61,225		42,472		37,240		71,515		778		0		289,180
Gross write-offs		0		0		(62)		0		0		0		0		0		(62)

Consumer
Pass	$	362	$	3,640	$	2,927	$	1,217	$	139	$	335	$	3,572	$	0	$	12,192
Special Mention		0		0		0		0		0		0		0		0		0
Substandard		0		1		6		0		0		0		0		0		7
Nonaccrual		0		0		0		0		0		0		0		0		0
Total		362		3,641		2,933		1,217		139		335		3,572		0		12,199
Gross write-offs		0		(9)		0		0		0		0		0		0		(9)

Total Loans
Pass	$	52,791	$	254,218	$	407,894	$	296,697	$	149,311	$	367,612	$	156,004	$	0	$	1,684,527
Special Mention		0		2,619		3,318		225		9,970		4,594		633		0		21,359
Substandard		0		238		1,693		4,916		3,278		11,959		4,323		0		26,407
Nonaccrual		71		0		759		557		779		2,496		2,314		0		6,976
Total		52,862		257,075		413,664		302,395		163,338		386,661		163,274		0		1,739,269

Total Gross Charge-Offs	$	0	$	(17)	$	(74)	$	0	$	0	$	(11)	$	(102)	$	0	$	(204)

The following table summarizes designated internal risk rating categories by portfolio segment, by origination year, in the period ended December 31, 2023. It does not include the regulatory classification of “doubtful,” nor does it include the regulatory classification of “loss”, because the Corporation promptly charges off loan losses.

Term Loans Amortized Cost Basis by Origination Year

CODORUS VALLEY BANCORP INC 10-Q