Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2024

Loans and Allowance for Credit Losses [Abstract]

A summary of loans at December 31, 2024 and December 31, 2023, are as follows (dollars in thousands):

	December 31,
	2024			2023

Construction & development	$	167,685		$	137,206
1 - 4 family real estate		121,047			100,576
Commercial real estate - other		511,304			518,622
Total commercial real estate	$	800,036		$	756,404

Commercial & industrial		507,023			526,185
Agricultural		77,922			66,495
Consumer		14,312			14,517

Gross loans		1,399,293			1,363,601

Less allowance for credit losses		(17,918	)		(19,691	)
Less deferred loan fees		(1,910	)		(2,762	)

Net loans	$	1,379,465		$	1,341,148

Activity in Allowance for Credit Losses by Portfolio Segment

The following table presents, by portfolio segment, the activity in the allowance for credit losses for the years ended December 31, 2024, 2023, and 2022 (dollars in thousands):

	Construction & Development			1 - 4 Family Real Estate		Commercial Real Estate - Other			Commercial & Industrial			Agricultural		Consumer		Total

December 31, 2024
Loans
Balance, beginning of period	$	1,417		$	1,271	$	6,889		$	9,237		$	628	$	249	$	19,691
Charge-offs		-			-		(275	)		(2,000	)		-		-		(2,275	)
Recoveries		-			-		-			495			7		-		502
Net (charge-offs) recoveries		-			-		(275	)		(1,505	)		7		-		(1,773	)
Provision (credit) for credit losses		(194	)		42		378			(935	)		471		238		-
Balance, end of period	$	1,223		$	1,313	$	6,992		$	6,797		$	1,106	$	487	$	17,918

Unfunded Commitments
Balance, beginning of period	$	158		$	4	$	8		$	280		$	11	$	3	$	464
Provision (credit) for credit losses		44			2		1			(50	)		3		-		-
Balance, end of period	$	202		$	6	$	9		$	230		$	14	$	3	$	464

Total Allowance for Credit Losses	$	1,425		$	1,319	$	7,001		$	7,027		$	1,120	$	490	$	18,382
Total Provision for Credit Losses	$	(150	)	$	44	$	379		$	(985	)	$	474	$	238	$	-

	Construction & Development			1 - 4 Family Real Estate			Commercial Real Estate - Other			Commercial & Industrial			Agricultural			Consumer			Total

December 31, 2023
Loans
Balance, beginning of period	$	1,889		$	890		$	5,080		$	5,937		$	765		$	173		$	14,734
Impact of CECL adoption		44			(138	)		(168	)		716			(149	)		(55	)		250

Charge-offs		-			-			-			(16,500	)		(7	)		(17	)		(16,524	)
Recoveries		-			-			-			40			2			8			50
Net (charge-offs) recoveries		-			-			-			(16,460	)		(5	)		(9	)		(16,474	)
Provision (credit) for credit losses		(516	)		519			1,977			19,044			17			140			21,181
Balance, end of period	$	1,417		$	1,271		$	6,889		$	9,237		$	628		$	249		$	19,691

Unfunded Commitments
Balance, beginning of period	$	-		$	-		$	-		$	-		$	-		$	-		$	-
Impact of CECL adoption		171			4			24			274			25			2			500
Provision (credit) for credit losses		(13	)		-			(16	)		6			(14	)		1			(36	)
Balance, end of period	$	158		$	4		$	8		$	280		$	11		$	3		$	464

Total Allowance for Credit Losses	$	1,575		$	1,275		$	6,897		$	9,517		$	639		$	252		$	20,155
Total Provision for Credit Losses	$	(529	)	$	519		$	1,961		$	19,050		$	3		$	141		$	21,145

	Construction & Development		1 - 4 Family Real Estate		Commercial Real Estate - Other		Commercial & Industrial			Agricultural			Consumer			Total

December 31, 2022
Balance, beginning of period	$	1,695	$	630	$	3,399	$	3,621		$	730		$	241		$	10,316

Charge-offs		-		-		-		(2	)		(50	)		(22	)		(74	)
Recoveries		-		-		-		10			4			10			24
Net (charge-offs) recoveries		-		-		-		8			(46	)		(12	)		(50	)

Provision (credit) for credit losses		194		260		1,681		2,308			81			(56	)		4,468

Balance, end of period	$	1,889	$	890	$	5,080	$	5,937		$	765		$	173		$	14,734

Loan Portfolio Based on Internal Rating Category

The following table presents the amortized cost of the Company’s loan portfolio with the gross charge-offs for the twelve months ended by year of origination based on internal rating category as of December 31, 2024 (dollars in thousands):

As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Construction & development
Grade
1 (Pass)	$	40,129	$	6,197	$	2,042	$	370	$	104	$	111	$	116,910	$	165,863
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		1,259		-		-		-		-		-		-		1,259
4 (Substandard)		563		-		-		-		-		-		-		563
Total construction & development		41,951		6,197		2,042		370		104		111		116,910		167,685
Current-period gross charge-offs		-		-		-		-		-		-		-		-
1 - 4 family real estate
Grade
1 (Pass)		56,013		31,274		13,488		6,381		3,729		1,920		8,242		121,047
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		-		-		-		-		-		-		-		-
4 (Substandard)		-		-		-		-		-		-		-		-
Total 1 - 4 family real estate		56,013		31,274		13,488		6,381		3,729		1,920		8,242		121,047
Current-period gross charge-offs		-		-		-		-		-		-		-		-
Commercial real estate - other
Grade
1 (Pass)		124,421		141,303		137,497		18,352		14,589		5,323		57,350		498,835
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		7,493		-		-		-		-		-		-		7,493
4 (Substandard)		4,426		447		-		-		-		103		-		4,976
Total Commercial real estate - other		136,340		141,750		137,497		18,352		14,589		5,426		57,350		511,304
Current-period gross charge-offs		-		275		-		-		-		-		-		275
Commercial and industrial
Grade
1 (Pass)		126,745		78,446		41,532		3,608		1,049		3,736		238,396		493,512
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		558		-		-		-		-		-		3,259		3,817
4 (Substandard)		9,417		-		-		-		-		-		277		9,694
Total Commercial and industrial		136,720		78,446		41,532		3,608		1,049		3,736		241,932		507,023
Current-period gross charge-offs		-		2,000		-		-		-		-		-		2,000
Agriculural
Grade
1 (Pass)		31,491		6,308		4,741		6,135		1,823		1,140		23,258		74,896
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		201		-		-		-		1,831		-		994		3,026
4 (Substandard)		-		-		-		-		-		-		-		-
Total agriculural		31,692		6,308		4,741		6,135		3,654		1,140		24,252		77,922
Current-period gross charge-offs		-		-		-		-		-		-		-		-
Consumer
Grade
1 (Pass)		4,904		1,866		771		1,358		1,689		2,020		1,704		14,312
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		-		-		-		-		-		-		-		-
4 (Substandard)		-		-		-		-		-		-		-		-
Total consumer		4,904		1,866		771		1,358		1,689		2,020		1,704		14,312
Current-period gross charge-offs		-		-		-		-		-		-		-		-
Total loans held for investment	$	407,620	$	265,841	$	200,071	$	36,204	$	24,814	$	14,353	$	450,390	$	1,399,293
Total current-period gross charge-offs	$	-	$	2,275	$	-	$	-	$	-	$	-	$	-	$	2,275

As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Construction & development
Grade
1 (Pass)	$	26,915	$	2,266	$	3,182	$	201	$	98	$	44	$	103,711	$	136,417
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		563		-		-		-		-		-		226		789
4 (Substandard)		-		-		-		-		-		-		-		-
Total construction & development		27,478		2,266		3,182		201		98		44		103,937		137,206
Current-period gross charge-offs		-		-		-		-		-		-		-		-
1 - 4 family real estate
Grade
1 (Pass)		48,275		22,573		13,305		3,928		1,808		1,069		9,618		100,576
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		-		-		-		-		-		-		-		-
4 (Substandard)		-		-		-		-		-		-		-		-
Total 1 - 4 family real estate		48,275		22,573		13,305		3,928		1,808		1,069		9,618		100,576
Current-period gross charge-offs		-		-		-		-		-		-		-		-
Commercial real estate - other
Grade
1 (Pass)		187,086		153,764		32,641		36,278		2,613		4,043		86,370		502,795
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		14,612		-		-		-		-		1,089		-		15,701
4 (Substandard)		-		-		-		-		-		126		-		126
Total Commercial real estate - other		201,698		153,764		32,641		36,278		2,613		5,258		86,370		518,622
Current-period gross charge-offs		-		-		-		-		-		-		-		-
Commercial and industrial
Grade
1 (Pass)		162,156		59,265		38,093		2,777		1,706		4,059		217,377		485,433
2 (Watch)		-		-		-		-		-		-		4,094		4,094
3 (Special Mention)		4,151		-		-		-		-		-		1,616		5,767
4 (Substandard)		20,660		7,937		98		8		-		-		2,188		30,891
Total Commercial and industrial		186,967		67,202		38,191		2,785		1,706		4,059		225,275		526,185
Current-period gross charge-offs		16,500		-		-		-		-		-		-		16,500
Agriculural
Grade
1 (Pass)		9,283		5,789		23,205		4,283		927		1,104		21,904		66,495
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		-		-		-		-		-		-		-		-
4 (Substandard)		-		-		-		-		-		-		-		-
Total agriculural		9,283		5,789		23,205		4,283		927		1,104		21,904		66,495
Current-period gross charge-offs		-		7		-		-		-		-		-		7
Consumer
Grade
1 (Pass)		4,415		1,545		2,171		2,554		663		1,819		1,270		14,437
2 (Watch)		-		-		-		-		-		-		-		-
3 (Special Mention)		-		-		-		-		-		-		-		-
4 (Substandard)		-		-		-		-		-		80		-		80
Total consumer		4,415		1,545		2,171		2,554		663		1,899		1,270		14,517
Current-period gross charge-offs		17		-		-		-		-		-		-		17
Total loans held for investment	$	478,116	$	253,139	$	112,695	$	50,029	$	7,815	$	13,433	$	448,374	$	1,363,601
Total current-period gross charge-offs	$	16,517	$	7	$	-	$	-	$	-	$	-	$	-	$	16,524

Loan Portfolio Aging Analysis of Recorded Investment in Loans

The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2024 and December 31, 2023 (dollars in thousands):

	Past Due												Total Loans
	30–59 Days		60–89 Days		Greater than 90 Days		Total		Current		Total Loans		> 90 Days & Accruing

December 31, 2024
Construction & development	$	-	$	-	$	-	$	-	$	167,685	$	167,685	$	-
1 - 4 family real estate		-		-		-		-		121,047		121,047		-
Commercial real estate - other		103		-		3,426		3,529		507,775		511,304		-
Commercial & industrial		403		5		-		408		506,615		507,023		-
Agricultural		-		-		-		-		77,922		77,922		-
Consumer		97		-		-		97		14,215		14,312		-

Total	$	603	$	5	$	3,426	$	4,034	$	1,395,259	$	1,399,293	$	-

December 31, 2023
Construction & development	$	-	$	-	$	-	$	-	$	137,206	$	137,206	$	-
1 - 4 family real estate		-		-		-		-		100,576		100,576		-
Commercial real estate - other		-		-		-		-		518,622		518,622		-
Commercial & industrial⁽¹⁾		472		10,969		9,946		21,387		504,798		526,185		9,946
Agricultural		-		-		-		-		66,495		66,495		-
Consumer⁽²⁾		-		27		80		107		14,410		14,517		80

Total	$	472	$	10,996	$	10,026	$	21,494	$	1,342,107	$	1,363,601	$	10,026

⁽¹⁾	The $9.95 million that is greater than 90 days past due as of December 31, 2023, primarily consists of a single borrower that is well collateralized and for which collection is being diligently pursued.

⁽²⁾	The $80,000 that is greater than 90 days past due as of December 31, 2023, consists of a single borrower that is well secured and for which collection is being diligently pursued.

Nonaccrual Loans

The following table presents information regarding nonaccrual loans as of December 31, 2024 and December 31, 2023 (dollars in thousands):

	With an Allowance		No Allowance		Total Non- Accrual Loans		Related Allowance
December 31, 2024
Construction & development	$	-	$	-	$	-	$	-
1 - 4 Family Real Estate		-		-		-		-
Commercial Real Estate - other		2,980		550		3,530		217
Commercial & industrial		83		3,557		3,640		83
Agricultural		-		-		-		-
Consumer		-		-		-		-
Total	$	3,063	$	4,107	$	7,170	$	300

	With an Allowance		No Allowance		Total Non- Accrual Loans		Related Allowance
December 31, 2023
Construction & development	$	-	$	-	$	-	$	-
1 - 4 Family Real Estate		-		-		-		-
Commercial Real Estate - other		-		126		126		-
Commercial & industrial		10,255		8,560		18,815		2,147
Agricultural		-		-		-		-
Consumer		-		-		-		-
Total	$	10,255	$	8,686	$	18,941	$	2,147

Collateral-Dependent Gross Loans Held for Investment

The following table summarizes collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows (dollars in thousands):

	Collateral Type
	Real Estate		Business Assets		Other Assets		Total		Specific Allocation
December 31, 2024
Construction & development	$	-	$	563	$	-	$	563	$	-
1 - 4 Family Real Estate		-		-		-		-		-
Commercial Real Estate - other		4,426		550		-		4,976		217
Commercial & industrial		-		9,609		-		9,609		-
Agricultural		-		-		-		-		-
Consumer		-		-		-		-		-

Total	$	4,426	$	10,722	$	-	$	15,148	$	217

	Collateral Type
	Real Estate		Business Assets		Other Assets		Total		Specific Allocation
December 31, 2023
Construction & development	$	-	$	-	$	-	$	-	$	-
1 - 4 Family Real Estate		-		-		-		-		-
Commercial Real Estate - other		126		-		-		126		-
Commercial & industrial		-		20,848		9,932		30,780		2,038
Agricultural		-		-		-		-		-
Consumer		27		-		80		107		-

Total	$	153	$	20,848	$	10,012	$	31,013	$	2,038