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Note 5 - Loan Restructurings

3 Months Ended

Mar. 31, 2025

Financing Receivable Restructurings [Text Block]

Loan Restructurings

The Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model.

The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the three months ended March 31, 2025 and March 31, 2024, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

Three Months Ended March 31, 2025	Amortized Cost
							Combination				% of Total
							Term Extension				Class of
	Payment		Term		Interest Rate		and Interest				Financing
(In Thousands of Dollars)	Deferral		Extension		Reduction		Rate Reduction		Total		Receivable
Commercial
Commercial and industrial	$	124	$	0	$	0	$	0	$	124		0.04	%
Residential real estate
Home equity lines of credit		0		15		0		0	$	15		0.01	%
Total modifications to borrowers experiencing financial difficulty	$	124	$	15	$	0	$	0	$	139		0.00	%

Three Months Ended March 31, 2024	Amortized Cost
							Combination				% of Total
							Term Extension				Class of
	Payment		Principal		Interest Rate		and Interest				Financing
(In Thousands of Dollars)	Deferral		Forgiveness		Reduction		Rate Reduction		Total		Receivable
Commercial real estate
Non-owner occupied	$	0	$	74	$	0	$	0	$	74		0.01	%
Residential real estate
Home equity lines of credit		0		0		29		0	$	29		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	0	$	74	$	29	$	0	$	103		0.00	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and March 31, 2024:

Payment Deferral

Term Extension

Interest Rate Reduction

Weighted-Average

Weighted-Average Years

Weighted-Average

Principal Deferred

Added to the Life

Contractual Interest Rate

Three Months Ended March 31, 2025

From

Commercial

Commercial and industrial

112

Residential real estate

Home equity lines of credit

Payment Deferral

Principal Forgiveness

Interest Rate Reduction

Weighted-Average

Reduction of Amortized

Weighted-Average

Principal Deferred

Cost Basis of the Loans

Contractual Interest Rate

Three Months Ended March 31, 2024

From

Commercial real estate

Non-owner occupied

152

Residential real estate

Home Equity Lines of Credit

10.25

5.00

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the three months ended March 31, 2025 and March 31, 2024:

Three Months Ended March 31, 2025	Payment status (Amortized cost Basis)
			30-89		90+
(In Thousands of Dollars)	Current		Days past due		Days past due
Accrual restructured loans
Commercial
Commercial and industrial	$	0	$	0	$	0
Residential real estate
Home equity lines of credit		15		0		0
Total accruing restructured loans		15		0		0

Nonaccrual restructured loans
Commercial
Commercial and industrial		0		0		124
Residential real estate
Home equity lines of credit		0		0		0
Total nonaccrual restructured loans		0		0		124
Total restructured loans	$	15	$	0	$	124

Three Months Ended March 31, 2024	Payment status (Amortized cost Basis)
			30-89		90+
(In Thousands of Dollars)	Current		Days past due		Days past due
Nonaccrual restructured loans
Commercial real estate
Non-owner occupied	$	74	$	0	$	0
Residential real estate
Home equity lines of credit		29		0		0
Total nonaccrual restructured loans		103		0		0
Total restructured loans	$	103	$	0	$	0

As of March 31, 2025, the Company had no commitments to lend any additional funds on restructured loans.

The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2025 and March 31, 2024 , and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. For purposes of this disclosure a default occurs when within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms:

Three Months Ended March 31, 2025	Amortized Cost
							Combination
							Term Extension
	Payment		Term		Interest Rate		and Interest Rate
(In Thousands of Dollars)	Deferral		Extension		Reduction		Reduction
Commercial
Commercial and industrial	$	124	$	0	$	0		0
Residential real estate
Home equity lines of credit		0		0		0		19
Total modifications to borrowers experiencing financial difficulty	$	124	$	0	$	0	$	19

Three Months Ended March 31, 2024	Amortized Cost
							Combination
							Term Extension
	Payment		Term		Interest Rate		and Interest Rate
(In Thousands of Dollars)	Deferral		Extension		Reduction		Reduction
Residential real estate
1-4 family residential	$	0	$	0	$	30	$	0
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	30	$	0

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance of the credit losses is adjusted by the same amount.