Loans and Allowance for Credit Losses on Loans

3 Months Ended

Mar. 31, 2025

Loans and Allowance for Credit Losses on Loans

Note 4. Loans and Allowance for Credit Losses on Loans

The majority of the disclosures in this footnote are prepared at the class level, which is equivalent to the call report or call code classification. The roll forward of the allowance for credit losses is presented at the portfolio segment level. Accrued interest receivable on loans of $10,512,000 and $10,745,000 at March 31, 2025 and December 31, 2024 respectively is not included in the loan tables below and is included in other assets on the Company’s balance sheets. Outstanding loans are summarized by class as follows:


Loan Type (Dollars in thousands)	March 31, 2025		December 31, 2024
Commercial:
Commercial and industrial	$	146,736	$	143,422
Agricultural production	28,045		37,323
Total commercial	174,781		180,745
Real estate:
Construction & other land loans	71,075		67,869
Commercial real estate - owner occupied	325,838		323,188
Commercial real estate - non-owner occupied	923,589		913,165
Farmland	137,587		139,815
Multi-family residential	143,524		133,595
1-4 family - close-ended	121,751		123,445
1-4 family - revolving	32,477		35,421
Total real estate	1,755,841		1,736,498
Consumer:
Manufactured housing	319,211		322,263
Other installment	95,180		92,839
Total consumer	414,391		415,102
Total gross loans	2,345,013		2,332,345
Net deferred origination costs	1,884		1,876
Loans, net of deferred origination costs	2,346,897		2,334,221
Allowance for credit losses	(26,095)		(25,803)
Total loans, net	$	2,320,802	$	2,308,418

At March 31, 2025 and December 31, 2024, loans originated under Small Business Administration (SBA) programs totaling $21,302,000 and $21,618,000, respectively, were included in the real estate and commercial categories, of which, $16,293,000 or 76% and $16,519,000 or 76%, respectively, were secured by government guarantees.

Allowance for Credit Losses on Loans

The measurement of the allowance for credit losses on collectively evaluated loans is based on modeled expectations of lifetime expected credit losses utilizing national and local peer group historical losses, weighting of economic scenarios, and other relevant factors. The Company incorporates forward-looking information using macroeconomic scenarios, which include variables that are considered key drivers of credit losses within the portfolio. The Company uses a probability-weighted, multiple scenario forecast approach. These scenarios may consist of a base forecast representing the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions.

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for credit losses on an individual loan basis.

The following table shows the summary of activities for the allowance for credit losses for the three months ended March 31, 2025 and 2024 by portfolio segment (in thousands):


	Commercial		Commercial Real Estate		1-4 Family Real Estate		Consumer		Total
Allowance for credit losses:
Beginning balance, January 1, 2025	$	1,752	$	17,766	$	2,751	$	3,534	$	25,803
(Credit) provision for credit losses (1)	(35)		(379)		(238)		820		168
Charge-offs	(6)		—		—		(23)		(29)
Recoveries	71		—		8		74		153
Ending balance, March 31, 2025	$	1,782	$	17,387	$	2,521	$	4,405	$	26,095

(1) Represents provision to credit losses for loans only. The credit to the provision for credit losses on the Consolidated Statements of Income of $(41) includes a $(182) credit for held-to-maturity securities and a $(27) credit for unfunded loan commitments.


	Commercial		Commercial Real Estate		1-4 Family Real Estate		Consumer		Total
Allowance for credit losses:
Beginning balance, January 1, 2024	$	1,475	$	9,792	$	2,435	$	951	$	14,653

Provision (credit) for credit losses (1)	9		474		(246)		293		530
Charge-offs	(507)		—		—		(68)		(575)
Recoveries	—		24		—		26		50
Ending balance, March 31, 2024	$	977	$	10,290	$	2,189	$	1,202	$	14,658

(1) Represents provision to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $575 includes a $(157) credit for held-to-maturity securities and a $202 provision for unfunded loan commitments.

During the three month period ended March 31, 2025, the provision for credit losses on loans was primarily driven by loan growth and fluctuations in the economic forecasts utilized by the Company. There were no changes to the economic scenarios, weightings, or peer group utilized by the Company during the quarter. During the quarter, the allowance for credit losses on loans as a percentage of loans remained stable, with additions from net recoveries and a provision for loan losses for the consumer loans during the quarter, partially offset by credits to the provision in the other loan segments. The provision for credit losses for consumer loans included specific reserves of $493,000 established for manufactured housing loans that were impacted by the southern California wildfires in January 2025. Management believes that the allowance for credit losses at March 31, 2025 appropriately reflected expected credit losses in the loan portfolio at that date.

The following tables present the composition of nonaccrual loans as of March 31, 2025 and December 31, 2024 respectively (in thousands).


	March 31, 2025
	With an ACL		Without an ACL		Total Nonaccrual

Commercial real estate - owner occupied	$	—	$	115	$	115
Commercial real estate - non-owner occupied	—		380		380
Farmland	—		2,398		2,398
1-4 family real estate	—		2,319		2,319
Manufactured housing	804		893		1,697
Consumer	—		27		27
Total	$	804	$	6,132	$	6,936


	December 31, 2024
	With an ACL		Without an ACL		Total Nonaccrual
Commercial real estate - owner occupied	$	—	$	120	$	120
Commercial real estate - non-owner occupied	—		378		378
Farmland	—		2,398		2,398
1-4 family real estate	—		2,335		2,335
Manufactured housing	—		1,215		1,215
Consumer	—		15		15
Total	$	—	$	6,461	$	6,461

The following table presents the amortized cost basis of collateral dependent loans by class of loans and by collateral type as of the dates indicated as of March 31, 2025 and December 31, 2024 respectively (in thousands).


	March 31, 2025
	Manufactured Homes		Real Estate		Machinery & Equipment		Total
Commercial real estate - owner occupied	$	—	$	115	$	—	$	115
Commercial real estate - non-owner occupied	—		—		380		380
Farmland	—		2,398		—		2,398
1-4 family real estate	—		2,319		—		2,319
Manufactured housing	1,697		—		—		1,697
Total	$	1,697	$	4,832	$	380	$	6,909


	December 31, 2024
	Manufactured Homes		Real Estate		Machinery & Equipment		Total
Commercial real estate - owner occupied	$	—	$	120	$	—	$	120
Commercial real estate - non-owner occupied	—		—		378		378
Farmland	—		2,398		—		2,398
1-4 family real estate	—		2,335		—		2,335

Manufactured housing	1,215		—		—		1,215
Total	$	1,215	$	4,853	$	378	$	6,446

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Loan ratings are reviewed as part of the Company's normal loan monitoring process, but, at a minimum, updated on an annual basis. Under the Company’s risk rating system, the Company rates loans with potential problems as “Special Mention,” “Substandard,” “Doubtful,” and “Loss”. The following is a description of the characteristics of loan ratings.

Special Mention - A Special Mention loan has potential weaknesses that require management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the full collection of amounts due. They are characterized by the distinct possibility that the Company will sustain some loss if the borrower’s deficiencies are not corrected.

Doubtful - A loan classified Doubtful has all the weaknesses inherent in one classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and

values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans.

Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. Losses are taken in the period in which they are considered uncollectible.

Loans not meeting the criteria above are considered to be pass-rated loans.

The following table shows the loan portfolio by class, net of deferred costs, allocated by management’s internal risk ratings for the period indicated. The following table also shows the gross charge-offs recognized during the three months ended March 31, 2025 (in thousands):


	Term Loans Amortized Cost Basis by Origination Year As of March 31, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Converted to Term		Total
Commercial and industrial
Pass/Watch	$	6,241	$	31,684	$	12,204	$	15,642	$	13,718	$	12,389	$	44,508	$	30	$	136,416
Special mention	—		—		—		—		1,421		—		—		—		1,421
Substandard	—		27		—		1,506		177		1,047		6,500		—		9,257
Total	$	6,241	$	31,711	$	12,204	$	17,148	$	15,316	$	13,436	$	51,008	$	30	$	147,094
Current period gross write-offs	$	6	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	6

Agricultural production
Pass/Watch	$	1,154	$	4,831	$	54	$	—	$	8	$	159	$	21,291	$	591	$	28,088
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	1,154	$	4,831	$	54	$	—	$	8	$	159	$	21,291	$	591	$	28,088
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction & other land loans
Pass/Watch	$	325	$	18,639	$	26,474	$	18,616	$	4,930	$	1,150	$	458	$	—	$	70,592
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		100		—		100
Total	$	325	$	18,639	$	26,474	$	18,616	$	4,930	$	1,150	$	558	$	—	$	70,692
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - owner occupied
Pass/Watch	$	5,764	$	48,242	$	23,071	$	47,489	$	43,020	$	144,081	$	7,276	$	—	$	318,943
Special mention	—		—		—		—		—		3,092		—		—		3,092
Substandard	—		—		1,756		—		—		1,523		190		—		3,469
Total	$	5,764	$	48,242	$	24,827	$	47,489	$	43,020	$	148,696	$	7,466	$	—	$	325,504
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial real estate - non-owner occupied
Pass/Watch	$	23,233	$	95,066	$	115,019	$	189,538	$	118,121	$	323,141	$	32,906	$	200	$	897,224
Special mention	—		—		—		587		628		6,307		—		—		7,522
Substandard	—		—		—		—		—		15,820		1,888		—		17,708
Total	$	23,233	$	95,066	$	115,019	$	190,125	$	118,749	$	345,268	$	34,794	$	200	$	922,454
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farmland
Pass/Watch	$	495	$	7,548	$	4,815	$	22,575	$	11,042	$	69,774	$	5,964	$	—	$	122,213
Special mention	—		—		3,824		—		—		—		1,350		—		5,174
Substandard	—		—		—		3,312		—		6,803		—		—		10,115
Total	$	495	$	7,548	$	8,639	$	25,887	$	11,042	$	76,577	$	7,314	$	—	$	137,502
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential
Pass/Watch	$	5,911	$	12,870	$	2,890	$	31,029	$	45,751	$	38,623	$	6,306	$	—	$	143,380
Special mention	—		—		—		—		—		—		—		—		—
Substandard			—		—		—		—		—		—		—		—
Total	$	5,911	$	12,870	$	2,890	$	31,029	$	45,751	$	38,623	$	6,306	$	—	$	143,380
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - close-ended
Pass/Watch	$	—	$	2,466	$	5,246	$	62,166	$	10,953	$	31,013	$	7,022	$	100	$	118,966
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		67		—		2,252		—		548		—		—		2,867
Total	$	—	$	2,533	$	5,246	$	64,418	$	10,953	$	31,561	$	7,022	$	100	$	121,833
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - revolving
Pass/Watch	$	—	$	—	$	—	$	—	$	—	$	—	$	27,132	$	5,527	$	32,659
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		40		40
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	27,132	$	5,567	$	32,699
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Manufactured Housing
Pass/Watch	$	10,477	$	45,946	$	40,915	$	44,883	$	37,333	$	135,808	$	—	$	—	$	315,362
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		117		570		517		623		2,010		—		—		3,837
Total	$	10,477	$	46,063	$	41,485	$	45,400	$	37,956	$	137,818	$	—	$	—	$	319,199
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer
Pass/Watch	$	10,401	$	49,344	$	21,227	$	5,209	$	4,476	$	6,930	$	653	$	—	$	98,240


Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		61		67		84		—		—		212
Total	$	10,401	$	49,344	$	21,227	$	5,270	$	4,543	$	7,014	$	653	$	—	$	98,452
Current period gross write-offs	$	23	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	23

Total loans outstanding (risk rating):
Pass/Watch	$	64,001	$	316,636	$	251,915	$	437,147	$	289,352	$	763,068	$	153,516	$	6,448	$	2,282,083
Special mention	—		—		3,824		587		2,049		9,399		1,350		—		17,209
Substandard	—		211		2,326		7,648		867		27,835		8,678		40		47,605
Grand Total	$	64,001	$	316,847	$	258,065	$	445,382	$	292,268	$	800,302	$	163,544	$	6,488	$	2,346,897
Current period total gross write-offs	$	29	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	29


	Term Loans Amortized Cost Basis by Origination Year As of December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total
Commercial and industrial
Pass/Watch	29,768		13,064		16,231		14,639		4,518		9,457		44,199		1,022		$	132,898
Special mention	—		—		—		1,498		—		—		—		—		1,498
Substandard	29		—		1,545		—		—		1,106		6,700		—		9,380
Total	$	29,797	$	13,064	$	17,776	$	16,137	$	4,518	$	10,563	$	50,899	$	1,022	$	143,776
Current period gross write-offs	$	120	$	—	$	5	$	—	$	—	$	45	$	—	$	—	$	170

Agricultural production
Pass/Watch	$	5,152	$	284	$	—	$	9	$	—	$	300	$	31,620	$	—	$	37,365
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	5,152	$	284	$	—	$	9	$	—	$	300	$	31,620	$	—	$	37,365
Current period gross write-offs	$	—	$	—	$	507	$	—	$	—	$	—	$	—	$	—	$	507

Construction & other land loans
Pass/Watch	$	12,413	$	20,137	$	19,290	$	14,166	$	701	$	733	$	100	$	—	$	67,540
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	12,413	$	20,137	$	19,290	$	14,166	$	701	$	733	$	100	$	—	$	67,540
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - owner occupied
Pass/Watch	$	48,191	$	23,314	$	45,741	$	43,354	$	31,354	$	117,466	$	7,086	$	—	$	316,506
Special mention	—		—		—		—		158		2,958		—		—		3,116
Substandard	—		1,765		—		—		946		584		—		—		3,295


Total	$	48,191	$	25,079	$	45,741	$	43,354	$	32,458	$	121,008	$	7,086	$	—	$	322,917
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate - non-owner occupied
Pass/Watch	$	95,131	$	115,292	$	188,516	$	118,773	$	74,762	$	261,586	$	33,453	$	1,250	$	888,763
Special mention	—		—		590		633		—		6,356		—		—		7,579
Substandard	—		—		—		—		—		15,846		—		—		15,846
Total	$	95,131	$	115,292	$	189,106	$	119,406	$	74,762	$	283,788	$	33,453	$	1,250	$	912,188
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farmland
Pass/Watch	$	7,691	$	4,945	$	21,383	$	12,288	$	29,379	$	42,815	$	5,731	$	—	$	124,232
Special mention	—		4,025		—		—		—		—		1,166		—		5,191
Substandard	—		—		3,312		—		2,029		4,962		—		—		10,303
Total	$	7,691	$	8,970	$	24,695	$	12,288	$	31,408	$	47,777	$	6,897	$	—	$	139,726
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-family residential
Pass/Watch	$	12,844	$	2,950	$	31,070	$	45,835	$	13,591	$	25,555	$	1,671	$	—	$	133,516
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	$	12,844	$	2,950	$	31,070	$	45,835	$	13,591	$	25,555	$	1,671	$	—	$	133,516
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - close-ended
Pass/Watch	$	2,501	$	5,405	$	63,350	$	13,581	$	6,993	$	24,830	$	3,975	$	—	$	120,635
Special mention	—		—		—		—		—		—		—		—		—
Substandard	78		—		2,257		—		—		551		—		—		2,886
Total	$	2,579	$	5,405	$	65,607	$	13,581	$	6,993	$	25,381	$	3,975	$	—	$	123,521
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

1-4 family - revolving
Pass/Watch	$	—	$	—	$	—	$	—	$	—	$	—	$	29,718	$	5,808	$	35,526
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		116		116
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	29,718	$	5,924	$	35,642
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Manufactured Housing
Pass/Watch	$	47,839	$	43,468	$	46,608	$	39,299	$	37,551	$	105,216	$	—	$	—	$	319,981
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		318		464		481		1,015		—		—		2,278
Total	$	47,839	$	43,468	$	46,926	$	39,763	$	38,032	$	106,231	$	—	$	—	$	322,259
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Consumer
Pass/Watch	$	53,869	$	22,700	$	6,254	$	4,987	$	1,371	$	5,740	$	660	$	—	$	95,581
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		15		62		37		63		13		—		—		190
Total	$	53,869	$	22,715	$	6,316	$	5,024	$	1,434	$	5,753	$	660	$	—	$	95,771
Current period gross write-offs	$	58	$	10	$	50	$	—	$	—	$	13	$	1	$	—	$	132

Total loans outstanding (risk rating):
Pass/Watch	$	315,399	$	251,559	$	438,443	$	306,931	$	200,220	$	593,698	$	158,213	$	8,080	$	2,272,543
Special mention	—		4,025		590		2,131		158		9,314		1,166		—		17,384
Substandard	107		1,780		7,494		501		3,519		24,077		6,700		116		44,294
Grand Total	$	315,506	$	257,364	$	446,527	$	309,563	$	203,897	$	627,089	$	166,079	$	8,196	$	2,334,221
Current period total gross write-offs	$	178	$	10	$	562	$	—	$	—	$	58	$	1	$	—	$	809

The following table shows an aging analysis of the loan portfolio by class at March 31, 2025 (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Loans Past Due > 89 Days, Still Accruing		Non-accrual
Commercial:
Commercial and industrial	$	250	$	37	$	—	$	287	$	146,449	$	146,736	$	—	$	—
Agricultural production	—		—		—		—		28,045		28,045		—		—
Real estate:
Construction & other land loans	—		—		—		—		71,075		71,075		—		—
Commercial real estate - owner occupied	951		204		—		1,155		324,683		325,838		—		115
Commercial real estate - non-owner occupied	—		—		380		380		923,209		923,589		—		380
Farmland	—		—		2,398		2,398		135,189		137,587		—		2,398
Multi-family residential	—		—		—		—		143,524		143,524		—		—
1-4 family - close-ended	—		783		1,733		2,516		119,235		121,751		—		2,319
1-4 family - revolving	40		—		—		40		32,437		32,477		—		—
Consumer:
Manufactured Housing	735		201		447		1383		317,828		319,211		—		1,697
Other Installment	317		27		—		344		94,836		95,180		—		27
Deferred fees	—		—		—		—		1,884		1,884		—		—
Total	$	2,293	$	1,252	$	4,958	$	8,503	$	2,338,394	$	2,346,897	$	—	$	6,936

The following table shows an aging analysis of the loan portfolio by class at December 31, 2024 (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Current		Total Loans		Loans Past Due > 89 Days, Still Accruing		Non- accrual
Commercial:
Commercial and industrial	$	272	$	—	$	—	$	272	$	143,150	$	143,422	$	—	$	—
Agricultural production	—		—		—		—		37,323		37,323		—		—
Real estate:	—
Construction & other land loans	—		—		—		—		67,869		67,869		—		—
Commercial real estate - owner occupied	242		—		—		242		322,946		323,188		—		120
Commercial real estate - non-owner occupied	—		—		378		378		912,787		913,165		—		378
Farmland	164		—		2,398		2,562		137,253		139,815		—		2,398
Multi-family residential	—		—		—		—		133,595		133,595		—		—
1-4 family - close-ended	2,071		1,909		78		4,058		119,387		123,445		—		2,335
1-4 family - revolving	648		—		—		648		34,773		35,421		—		—

Consumer:
Manufactured Housing	535				460		995		321,268		322,263		—		1,215
Other Installment	656		27		—		683		92,156		92,839		—		15
Deferred fees	—		—		—		—		1,876		1,876		—		—
Total	$	4,588	$	1,936	$	3,314	$	9,838	$	2,324,383	$	2,334,221	$	—	$	6,461

There was $82,000 foregone interest on nonaccrual loans for the three month period ended March 31, 2025. There was no forgone interest for the three month period ended March 31, 2024.

Occasionally, the Company modifies loans to borrowers in financial distress by providing reductions of the stated interest rate of the loan or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. There were no loan modifications granted to borrowers experiencing financial difficulty during the three month periods ended March 31, 2025 and 2024.