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Loans
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans Loans
The table below identifies the Company's loan portfolio segments and classes.
Portfolio SegmentClass of Financing Receivable
CommercialOwner occupied real estate
Non-owner occupied real estate
Residential spec homes
Development & spec land
Commercial and industrial
Residential real estateResidential mortgage
Residential construction
Mortgage warehouseMortgage warehouse
ConsumerInstallment
Indirect auto
Home equity
Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity’s method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan.
The following table presents total outstanding loans held of investment by portfolio class, as of December 31, 2024 and 2023.
December 31,
2024		December 31,
2023
Commercial
Owner occupied real estate$667,165 $640,731 
Non–owner occupied real estate1,501,456 1,273,838 
Residential spec homes15,611 13,489 
Development & spec land18,627 34,039 
Commercial & industrial875,297 712,863 
Total commercial3,078,156 2,674,960 
Real estate
Residential mortgage783,961 654,295 
Residential construction18,948 26,841 
Mortgage warehouse— 45,078 
Total residential real estate802,909 726,214 
Consumer
Installment97,190 52,366 
Indirect auto303,901 399,946 
Home equity564,884 564,144 
Total consumer965,975 1,016,456 
Total loans held for investment4,847,040 4,417,630 
Allowance for credit losses(51,980)(50,029)
Loans held for investment, net$4,795,060 $4,367,601 
Total loans include net unearned discounts and deferred loan costs of $14.9 million and $21.9 million at December 31, 2024 and 2023, respectively.
The risk characteristics of each loan portfolio segment are as follows:
Commercial
Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.
Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy or fluctuations in interest rates. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner occupied commercial real estate loans versus non-owner occupied loans.
Real Estate and Consumer
With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.
Mortgage Warehousing
Horizon’s mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon’s agreement with the mortgage company. Each mortgage loan funded by Horizon undergoes an underwriting review by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company reacquires the loan under its option within the agreement. Due to the reacquire feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days.
Based on the agreements with each mortgage company, at any time a mortgage company can reacquire from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company reacquire an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the purchase commitment and the mortgage company would not be able to reacquire its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement.
Non–performing Loans
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at December 31, 2024:
December 31, 2024
Total
Non–accrual		Loans Past
Due Over 90
Days Still
Accruing		Non–accruing Loans with no Allowance for Credit Losses
Commercial
Owner occupied real estate$2,448 $— $1,419 
Non–owner occupied real estate444 — 444 
Residential spec homes— — — 
Development & spec land534 — 534 
Commercial and industrial2,232 — 1,239 
Total commercial5,658 — 3,636 
Real estate
Residential mortgage11,215 — — 
Residential construction— — — 
Mortgage warehouse— — — 
Total real estate11,215 — — 
Consumer
Installment338 128 — 
Indirect auto1,542 358 — 
Home equity7,039 680 — 
Total consumer8,919 1,166 — 
Total$25,792 $1,166 $3,636 
The following table presents non–accrual loans, loans past due over 90 days still on accrual by class of loan at December 31, 2023:
December 31, 2023
Total
Non–accrual		Loans Past
Due Over 90
Days Still
Accruing		Non–performing Loans with no Allowance for Credit Losses
Commercial
Owner occupied real estate$2,636 $— $1,789 
Non–owner occupied real estate3,485 — 1,242 
Residential spec homes— — — 
Development & spec land617 — 617 
Commercial and industrial624 — 20 
Total commercial7,362 — 3,668 
Real estate
Residential mortgage8,058 — — 
Residential construction— — — 
Mortgage warehouse— — — 
Total real estate8,058 — — 
Consumer
Installment88 — — 
Indirect auto899 299 — 
Home equity3,303 260 — 
Total consumer4,290 559 — 
Total$19,710 $559 $3,668 

There was no interest income recognized on non–accrual loans during the years ended December 31, 2024 or 2023 while the loans were in non–accrual status.
The amount of accrued interest receivable written off by the Company by reversing interest income was not material for the year ended December 31, 2024 and 2023, respectively.
The following table presents the payment status by class of loan at December 31, 2024:
December 31, 2024
Current30–59 Days
Past Due		60–89 Days
Past Due		90 Days or
Greater
Past Due		Total Past DueTotal Loans
Commercial
Owner occupied real estate$665,875 $1,195 $— $95 $1,290 $667,165 
Non–owner occupied real estate1,500,229 931 — 296 1,227 1,501,456 
Residential spec homes15,611 — — — — 15,611 
Development & spec land18,627 — — — — 18,627 
Commercial and industrial872,893 2,155 70 179 2,404 875,297 
Total commercial3,073,235 4,281 70 570 4,921 3,078,156 
Real estate
Residential mortgage773,214 — 4,163 6,584 10,747 783,961 
Residential construction18,948 — — — — 18,948 
Mortgage warehouse— — — — — — 
Total real estate792,162 — 4,163 6,584 10,747 802,909 
Consumer
Installment95,337 1,325 181 347 1,853 97,190 
Indirect auto298,048 4,179 806 868 5,853 303,901 
Home equity551,483 7,143 1,537 4,721 13,401 564,884 
Total consumer944,868 12,647 2,524 5,936 21,107 965,975 
Total$4,810,265 $16,928 $6,757 $13,090 $36,775 $4,847,040 
The following table presents the payment status by class of loan at December 31, 2023:
December 31, 2023
Current30–59 Days
Past Due		60–89 Days
Past Due		90 Days or
Greater
Past Due		Total Past DueTotal
Commercial
Owner occupied real estate$638,389 $2,342 $— $— $2,342 $640,731 
Non–owner occupied real estate1,273,791 — — 47 47 $1,273,838 
Residential spec homes13,489 — — — — $13,489 
Development & spec land33,036 — 1,003 — 1,003 $34,039 
Commercial and industrial710,567 1,659 54 583 2,296 $712,863 
Total commercial2,669,272 4,001 1,057 630 5,688 2,674,960 
Real estate
Residential mortgage646,984 2,823 2,353 2,135 7,311 $654,295 
Residential construction26,841 — — — — $26,841 
Mortgage warehouse45,078 — — — — $45,078 
Total real estate718,903 2,823 2,353 2,135 7,311 $726,214 
Consumer
Installment52,001 304 10 51 365 $52,366 
Indirect auto393,615 4,958 736 637 6,331 $399,946 
Home equity558,062 3,748 1,217 1,117 6,082 $564,144 
Total consumer1,003,678 9,010 1,963 1,805 12,778 1,016,456 
Total$4,391,853 $15,834 $5,373 $4,570 $25,777 $4,417,630 
The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.
Modified Loans
The following tables detail the amortized cost as of December 31, 2024 and 2023, respectively, of loans that were modified to borrowers experiencing financial difficulty during the year ended:
December 31, 2024
Term ExtensionInterest Rate ReductionOther-Than-Insignificant Payment DelayTerm Extension and Interest Rate Reduction
Multiple1
Total% of Loans Held for Investment
Commercial
Owner occupied real estate$2,038 $— $651 $2,418 $— $5,107 0.77 %
Non–owner occupied real estate— — — — — — — %
Commercial and industrial3,448 — 740 236 — 4,424 0.51 %
Total$5,486 $— $1,391 $2,654 $— $9,531 0.20 %
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.
December 31, 2023
Term ExtensionInterest Rate ReductionOther-Than-Insignificant Payment DelayTerm Extension and Interest Rate Reduction
Multiple1
Total% of Loans Held for Investment
Commercial
Owner occupied real estate$3,717 $— $— $— $— $3,717 0.58 %
Non–owner occupied real estate— — — — — — — %
Commercial and industrial1,953 — — 562 131 2,646 0.37 %
Total$5,670 $— $— $562 $131 $6,363 0.13 %
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.
The following tables summarize the financial impacts of loan modifications and payment deferrals, as applicable, during the year ended December 31, 2024 and 2023, respectively.
December 31, 2024
Weighted Average Term Extension (In Months)Weighted Average Interest Rate Reduction (In Percentage Terms)Weighted Average Payment Delay (In Months)Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial
Owner occupied real estate6— %5
Weighted average term extension of 60 months & Weighted average interest rate reduction of 1.04%
Non-owner occupied real estate— — — — 
Commercial and industrial29— 6
Weighted average term extension of 21 months & Weighted average interest rate reduction of 2.25%
December 31, 2023
Weighted Average Term Extension (In Months)Weighted Average Interest Rate Reduction (Int Percentage Terms)Weighted Average Payment Delay (In Months)Term Extension
(In Months) &
Rate Reduction
(In Percentage Terms)
Multiple1
Commercial
Owner occupied real estate12— %— — 
Non-owner occupied real estate— — — — 
Commercial and industrial23— — 
Weighted average term extension of 105 months &
Weighted average interest rate reduction of 1.22%
Weighted average term extension of 32 months & Weighted average payment deferral of 4 months
1 Multiple modifications represents modifications to borrowers in the form of term extensions and other-than-insignificant payment deferrals.
The financial impacts of the modifications did not significantly impact our determination of the allowance for credit losses during the periods presented above.

The following table presents the amortized cost basis at December 31, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:

December 31, 2024
Current30-89 Days Past Due90 Days or Greater
Past Due		Total
Commercial
Owner occupied real estate$5,107 $— $— $5,107 
Non–owner occupied real estate0— — 0
Commercial and industrial4,424— — 4,424
Total$9,531 $— $— $9,531 
The following table presents the amortized cost basis at December 31, 2023 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:
December 31, 2023
Current30-89 Days Past Due90 Days or Greater
Past Due		Total
Commercial
Owner occupied real estate$2,646 $— $— $2,646 
Non–owner occupied real estate— — — — 
Commercial and industrial3,717 — — 3,717 
Total$6,363 $— $— $6,363 
The Company did not have any loans to borrowers experiencing financial difficulty that had a payment default during the years ended December 31, 2024 and 2023, respectively, and were modified within the twelve months prior to the payment default. For purposes of this disclosure, the Company considers “default” to mean 30 days or more past due of contractual interest or principal.
Collateral Dependent Financial Assets
A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent.
The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at December 31, 2024 and 2023.
December 31, 2024
Real EstateAccounts Receivable/EquipmentOtherTotalACL Allocation
Commercial
Owner occupied real estate$2,448 $— $— $2,448 $224 
Non–owner occupied real estate444 — — 444 — 
Residential spec homes— — — — — 
Development & spec land534 — — 534 — 
Commercial and industrial1,756 476 — 2,232 731 
Total commercial5,182 476 — 5,658 955 
Total collateral dependent loans$5,182 $476 $— $5,658 $955 
(1) Collateral dependent loans had a collateral fair value of $3.4 million at December 31, 2024
December 31, 2023
Real EstateAccounts Receivable/EquipmentOtherTotalACL Allocation
Commercial
Owner occupied real estate$2,636 $— $— $2,636 $190 
Non–owner occupied real estate3,485 — — 3,485 699 
Residential spec homes— — — — — 
Development & spec land617 — — 617 — 
Commercial and industrial563 42 20 625 604 
Total commercial7,301 42 20 7,363 1,493 
Total collateral dependent loans$7,301 $42 $20 $7,363 $1,493 
(1) Collateral dependent loans had a collateral fair value of $6.3 million at December 31, 2023
As of December 31, 2024, the Company had a carrying value of $0.4 million of repossessed assets. As of December 31, 2024, the Company had a recorded net investment of $0.3 million of consumer mortgage loans in which foreclosure proceedings have commenced. Repossessed assets are a component of other assets within the consolidated balance sheet.

Credit Quality Indicators
Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re–evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the credit quality grade.
•    For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $3,000,000 to $6,000,000) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”).
•    Commercial loan officers are responsible for reviewing their loan portfolios and promptly assessing any adverse change in credit quality and revising the risk rating appropriately. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the Credit Department of the change in the credit quality grade. Downgrades are accepted immediately, however, lenders must present their factual information to the Credit Department when recommending an upgrade. Downgrades to impaired status require the concurrence of the CCBO and the Senior Workout Loan Manager.
•    The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade.
•    Monthly, senior management meets as members of the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, loan modifications, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Credit Losses on Loans and Leases.
For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non–accrual, or are classified as modified loans are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non–accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass.
Horizon Bank employs a nine–grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below.
Risk Grade 1: Excellent (Pass)
Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long–term debt rating of A or better and meeting defined key financial metric ranges.
Risk Grade 2: Good (Pass)
Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three years consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five years consecutive years of profits, a five year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities with required margins where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit histories; or loans to publicly held companies with current long–term debt ratings of Baa or better and meeting defined key financial metric ranges.
Risk Grade 3: Satisfactory (Pass)
Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply:
•    At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory;
•    At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss.
•    The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance.
•    During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted.

Risk Grade 4: Satisfactory/Monitored
Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization.
Risk Grade 4W: Management Watch
Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan
officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized.
Risk Grade 5: Special Mention
Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges.
Risk Grade 6: Substandard
One or more of the following characteristics may be exhibited in loans classified Substandard:
•    Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss.
•    Loans are inadequately protected by the current net worth and paying capacity of the obligor.
•    The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees.
•    Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.
•    Unusual courses of action are needed to maintain a high probability of repayment.
•    The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments.
•    The lender is forced into a subordinated or unsecured position due to flaws in documentation.
•    Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms.
•    The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.
•    There is a significant deterioration in market conditions to which the borrower is highly vulnerable.
•    The borrower meets defined key financial metric ranges.
Risk Grade 7: Doubtful
One or more of the following characteristics may be present in loans classified Doubtful:
•    Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable.
•    The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.
•    The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known.
•    The borrower meets defined key financial metric ranges.
Risk Grade 8: Loss
Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.
The following tables present loans by credit grades and origination year at December 31, 2024.
December 31, 202420242023202220212020PriorRevolving Term
Loans		Revolving
Loans		Total
Commercial
Owner occupied real estate
Pass$75,649 $74,305 $90,872 $68,978 $36,778 $178,936 $92,227 $12,365 $630,110 
Special Mention129 — 1,724 1,769 142 8,759 — 100 12,623 
Substandard2,970 8,761 1,051 6,307 — 4,843 — 500 24,432 
Doubtful— — — — — — — — — 
Total owner occupied real estate$78,748 $83,066 $93,647 $77,054 $36,920 $192,538 $92,227 $12,965 $667,165 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $1 $— $— $1 
Non–owner occupied real estate
Pass$194,167 $115,378 $244,266 $133,689 $100,688 $344,558 $298,288 $11,726 $1,442,760 
Special Mention— 4,211 16,409 1,249 — 31,083 — — 52,952 
Substandard83 297 — — — 5,364 — — 5,744 
Doubtful— — — — — — — — — 
Total non–owner occupied real estate$194,250 $119,886 $260,675 $134,938 $100,688 $381,005 $298,288 $11,726 $1,501,456 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $— $— $— $— 
Residential spec homes
Pass$362 $— $— $420 $— $— $10,986 $3,843 $15,611 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total residential spec homes$362 $— $— $420 $— $— $10,986 $3,843 $15,611 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $— $— $— $— 
Development & spec land
Pass$819 $4,139 $788 $1,133 $328 $2,039 $7,931 $599 $17,776 
Special Mention— — — — — 317 — — 317 
Substandard— — — — — — 534 — 534 
Doubtful— — — — — — — — — 
Total development & spec land$819 $4,139 $788 $1,133 $328 $2,356 $8,465 $599 $18,627 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $— $— $— $— 
Commercial & industrial
Pass$242,562 $105,877 $128,707 $73,008 $6,954 $54,764 $48,313 $179,370 $839,555 
Special Mention1,246 324 1,245 28 1 1,573 9,519 9,281 23,217 
Substandard843 2,599 318 217 266 3,170 1,003 4,109 12,525 
Doubtful— — — — — — — — — 
Total commercial & industrial244,651 108,800 130,270 73,253 7,221 59,507 58,835 192,760 875,297 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $45 $108 $— $153 
December 31, 202420242023202220212020PriorRevolving Term
Loans		Revolving
Loans		Total
Real estate
Residential mortgage
Performing$69,264 $145,927 $160,780 $140,310 $78,563 $177,902 $— $— $772,746 
Non–performing201 1,619 2,125 1,472 706 5,092 — — 11,215 
Total residential mortgage$69,465 $147,546 $162,905 $141,782 $79,269 $182,994 $— $— $783,961 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $5 $— $— $5 
Residential construction
Performing$— $— $— $— $— $— $18,948 $— $18,948 
Non–performing— — — — — — — — — 
Total residential construction$— $— $— $— $— $— $18,948 $— $18,948 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $— $— $— $— 
Mortgage warehouse
Performing$— $— $— $— $— $— $— $— $— 
Non–performing— — — — — — — — — 
Total mortgage warehouse$— $— $— $— $— $— $— $— $— 
Gross charge–offs for the year ended December 31, 2024$— $— $— $— $— $— $— $— $— 
December 31, 202420242023202220212020PriorRevolving Term
Loans		Revolving
Loans		Total
Consumer
Direct installment
Performing$11,306 $59,850 $9,510 $5,398 $2,679 $6,003 $60 $1,918 $96,724 
Non–performing1 374 46 19 — 26 — — 466 
Total direct installment$11,307 $60,224 $9,556 $5,417 $2,679 $6,029 $60 $1,918 $97,190 
Gross charge–offs for the year ended December 31, 2024$72 $93 $169 $1 $35 $78 $9 $— $457 
Indirect installment
Performing$26,839 $70,143 $130,610 $49,458 $17,647 $7,304 $— $— $302,001 
Non–performing— 425 800 304 242 129 — — 1,900 
Total indirect installment$26,839 $70,568 $131,410 $49,762 $17,889 $7,433 $— $— $303,901 
Gross charge–offs for the year ended December 31, 2024$161 $449 $1,345 $527 $188 $99 $— $— $2,769 
Home equity
Performing$13,552 $21,845 $16,136 $5,110 $1,902 $9,210 $18,657 $470,753 $557,165 
Non–performing— 421 426 — 30 296 6,465 81 7,719 
Total home equity13,552 22,266 16,562 5,110 1,932 9,506 25,122 470,834 564,884 
Gross charge–offs for the year ended December 31, 2024$— $23 $52 $88 $— $39 $110 $11 $323 
The following table presents loans by credit grades and origination year at December 31, 2023.
December 31, 202320232022202120202019PriorRevolving Term
Loans		Revolving
Loans		Total
Commercial
Owner occupied real estate
Pass$66,814 $101,620 $73,199 $44,067 $41,726 $173,913 $93,432 $8,226 $602,997 
Special Mention3,920 490 3,777 — 2,038 8,128 — 452 18,805 
Substandard1,376 — 6,490 966 228 9,339 530 — 18,929 
Doubtful— — — — — — — — — 
Total owner occupied real estate$72,110 $102,110 $83,466 $45,033 $43,992 $191,380 $93,962 $8,678 $640,731 
Gross charge–offs for the year ended December 31, 2023$— $— $— $— $— $3 $401 $— $404 
Non–owner occupied real estate
Pass$116,031 $197,702 $149,540 $104,591 $83,394 $303,191 $246,569 $9,878 $1,210,896 
Special Mention1,366 16,135 1,334 254 845 36,590 — — 56,524 
Substandard— — — 185 — 6,233 — — 6,418 
Doubtful— — — — — — — — — 
Total non–owner occupied real estate$117,397 $213,837 $150,874 $105,030 $84,239 $346,014 $246,569 $9,878 $1,273,838 
Gross charge–offs for the year ended December 31, 2023$— $— $— $— $— $9 $— $— $9 
Residential spec homes
Pass$— $— $498 $— $— $— $5,852 $7,139 $13,489 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total residential spec homes$— $— $498 $— $— $— $5,852 $7,139 $13,489 
Gross charge–offs for the year ended December 31, 2023$— $— $— $— $— $— $29 $— $29 
Development & spec land
Pass$5,133 $1,477 $990 $390 $247 $3,146 $20,236 $170 $31,789 
Special Mention— — — — — — 1,529 — 1,529 
Substandard— — — — — 104 617 — 721 
Doubtful— — — — — — — — — 
Total development & spec land$5,133 $1,477 $990 $390 $247 $3,250 $22,382 $170 $34,039 
Gross charge–offs for the year ended December 31, 2023$— $— $— $— $— $— $— $— $— 
Commercial & industrial
Pass$121,969 $151,847 $93,709 $12,154 $20,497 $59,041 $60,539 $147,773 $667,529 
Special Mention1,434 726 265 2,137 119 1,305 9,375 18,836 34,197 
Substandard1,595 703 223 211 768 2,404 2,863 2,370 11,137 
Doubtful— — — — — — — — — 
Total commercial & industrial$124,998 $153,276 $94,197 $14,502 $21,384 $62,750 $72,777 $168,979 $712,863 
Gross charge–offs for the year ended December 31, 2023$— $33 $— $123 $25 $72 $344 $— $597 

December 31, 202320232022202120202019PriorRevolving
Term Loans		Revolving
Loans		Total
Real estate
Residential mortgage
Performing$40,920 $154,803 $157,480 $85,159 $30,464 $177,411 $— $— $646,237 
Non–performing118 1,591 748 259 647 4,695 — — 8,058 
Total residential mortgage$41,038 $156,394 $158,228 $85,418 $31,111 $182,106 $— $— $654,295 
Gross charge–offs for the year ended December 31, 2023$— $28 $— $— $— $20 $— $— $48 
Residential construction
Performing$— $— $— $— $— $— $26,841 $— $26,841 
Non–performing— — — — — — — — — 
Total residential construction$— $— $— $— $— $— $26,841 $— $26,841 
Gross charge–offs for the year ended December 31, 2023$— $— $— $— $— $— $— $— $— 
Mortgage warehouse
Performing$— $— $— $— $— $— $— $45,078 $45,078 
Non–performing— — — — — — — — — 
Total mortgage warehouse— — — — — — — 45,078 45,078 
Gross charge–offs for the year ended December 31, 2023$— $— $— $— $— $— $— $— $— 
December 31, 202320232022202120202019PriorRevolving Term
Loans		Revolving
Loans		Total
Consumer
Direct installment
Performing$14,835 $13,447 $7,859 $4,246 $4,449 $5,074 $6 $2,362 $52,278 
Non–performing— 44 10 — 27 7 — — 88 
Total direct installment$14,835 $13,491 $7,869 $4,246 $4,476 $5,081 $6 $2,362 $52,366 
Gross charge–offs for the year ended December 31, 2023$33 $28 $31 $10 $32 $27 $6 $— $167 
Indirect installment
Performing$65,260 $191,871 $80,773 $35,995 $16,690 $8,159 $— $— $398,748 
Non–performing49 424 312 229 124 60 — — 1,198 
Total indirect installment$65,309 $192,295 $81,085 $36,224 $16,814 $8,219 $— $— $399,946 
Gross charge–offs for the year ended December 31, 2023$86 $1,388 $708 $137 $58 $74 $— $— $2,451 
Home equity
Performing$26,376 $21,379 $5,121 $2,447 $3,885 $9,987 $12,713 $478,673 $560,581 
Non–performing— 212 — 54 177 260 2,860 — 3,563 
Total home equity26,376 21,591 5,121 2,501 4,062 10,247 15,573 478,673 564,144 
Gross charge–offs for the year ended December 31, 2023$— $10 $— $103 $— $91 $13 $— $217