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Loans and Allowance for Credit Losses on Loans | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
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 $10,794,000 and $10,745,000 at September 30, 2025 and December 31, 2024 respectively is not included in the loan tables below and is included in other assets on the Company’s consolidated balance sheets. Outstanding loans are summarized by class as follows:
Loan Type (Dollars in thousands) |  | September 30, 2025 |  |  |  | December 31, 2024 |  |
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 157,880 |  |  |  |  | $ | 143,422 |  |  |
Agricultural production |  | 22,915 |  |  |  |  | 37,323 |  |  |
Total commercial |  | 180,795 |  |  |  |  | 180,745 |  |  |
Real estate: |  |  |  |  |  |  |  |
Construction & other land loans |  | 78,628 |  |  |  |  | 67,869 |  |  |
Commercial real estate - owner occupied |  | 354,841 |  |  |  |  | 323,188 |  |  |
Commercial real estate - non-owner occupied |  | 972,014 |  |  |  |  | 913,165 |  |  |
Farmland |  | 140,454 |  |  |  |  | 139,815 |  |  |
Multi-family residential |  | 154,073 |  |  |  |  | 133,595 |  |  |
1-4 family - close-ended |  | 109,567 |  |  |  |  | 123,445 |  |  |
1-4 family - revolving |  | 38,724 |  |  |  |  | 35,421 |  |  |
Total real estate |  | 1,848,301 |  |  |  |  | 1,736,498 |  |  |
Consumer: |  |  |  |  |  |  |  |
Manufactured housing |  | 326,755 |  |  |  |  | 322,263 |  |  |
Other installment |  | 94,423 |  |  |  |  | 92,839 |  |  |
Total consumer |  | 421,178 |  |  |  |  | 415,102 |  |  |
Total gross loans |  | 2,450,274 |  |  |  |  | 2,332,345 |  |  |
Net deferred origination costs |  | 868 |  |  |  |  | 1,876 |  |  |
Loans, net of deferred origination costs |  | 2,451,142 |  |  |  |  | 2,334,221 |  |  |
Allowance for credit losses |  | (29,590) |  |  |  |  | (25,803) |  |  |
Total loans, net |  | $ | 2,421,552 |  |  |  |  | $ | 2,308,418 |  |  |
At September 30, 2025 and December 31, 2024, loans originated under Small Business Administration (SBA) programs totaling $20,715,000 and $21,618,000, respectively, were included in the real estate and commercial categories, of which, $16,089,000 or 78% 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 as of and for the three months ended September 30, 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, July 1, 2025 |  | $ | 2,231 |  |  | $ | 19,281 |  |  | $ | 2,505 |  |  | $ | 4,705 |  |  |  |  | $ | 28,722 |
Provision (credit) for credit losses (1) |  | (147) |  |  | 1,159 |  |  | (114) |  |  | (105) |  |  |  |  | 793 |
Charge-offs |  | (3) |  |  | — |  |  | — |  |  | (42) |  |  |  |  | (45) |
Recoveries |  | 62 |  |  | — |  |  | 46 |  |  | 12 |  |  |  |  | 120 |
Ending balance, September 30, 2025 |  | $ | 2,143 |  |  | $ | 20,440 |  |  | $ | 2,437 |  |  | $ | 4,570 |  |  |  |  | $ | 29,590 |
(1) Represents provision (credit) to credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $667 includes a $(62) credit for held-to-maturity securities and a $(64) credit for unfunded loan commitments.
|  | Commercial |  | Commercial Real Estate |  | 1-4 Family Real Estate |  | Consumer |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Beginning balance, July 1, 2024 |  | $ | 1,477 |  |  | $ | 16,626 |  |  | $ | 2,965 |  |  | $ | 3,872 |  |  | $ | 24,940 |
Provision (credit) for credit losses (1) |  | (256) |  |  | 1,056 |  |  | (146) |  |  | (865) |  |  | (211) |
Charge-offs |  | (5) |  |  | — |  |  | — |  |  | (15) |  |  | (20) |
Recoveries |  | 51 |  |  | 6 |  |  | 59 |  |  | 66 |  |  | 182 |
Ending balance, September 30, 2024 |  | $ | 1,267 |  |  | $ | 17,688 |  |  | $ | 2,878 |  |  | $ | 3,058 |  |  | $ | 24,891 |
(1) Represents provision (credit) to credit losses for loans only. The credit for credit losses on the Consolidated Statements of Income of $(518) includes a $(219) credit for held-to-maturity securities and a $(88) credit for unfunded loan commitments. The following table shows the summary of activities for the allowance for credit losses as of and for the nine months ended September 30, 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 |
Provision (credit) for credit losses (1) |  | 301 |  |  | 2,624 |  |  | (377) |  |  | 1,053 |  |  | 3,601 |
Charge-offs |  | (94) |  |  | — |  |  | — |  |  | (115) |  |  | (209) |
Recoveries |  | 184 |  |  | 50 |  |  | 63 |  |  | 98 |  |  | 395 |
Ending balance, September 30, 2025 |  | $ | 2,143 |  |  | $ | 20,440 |  |  | $ | 2,437 |  |  | $ | 4,570 |  |  | $ | 29,590 |
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Income of $3,239 includes a $(432) credit for held-to-maturity securities and a $70 provision for unfunded loan commitments.
|  | Commercial |  | Commercial Real Estate |  | 1-4 Family |  | Consumer |  |  |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, January 1, 2024 |  | $ | 1,475 |  |  | $ | 9,792 |  |  | $ | 2,435 |  |  | $ | 951 |  |  |  |  | $ | 14,653 |
Allowance for loan loss on purchased credit deteriorated loans (PCD) |  | 375 |  |  | 371 |  |  | 2 |  |  | 73 |  |  |  |  | 821 |
Provision for credit losses (1) |  | (76) |  |  | 7,495 |  |  | 374 |  |  | 2,028 |  |  |  |  | 9,821 |
Charge-offs |  | (558) |  |  | — |  |  | — |  |  | (90) |  |  |  |  | (648) |
Recoveries |  | 51 |  |  | 30 |  |  | 67 |  |  | 96 |  |  |  |  | 244 |
Ending balance, September 30, 2024 |  | $ | 1,267 |  |  | $ | 17,688 |  |  | $ | 2,878 |  |  | $ | 3,058 |  |  |  |  | $ | 24,891 |
(1) Represents credit losses for loans only. The provision for credit losses on the Consolidated Statements of Operations of $9,889 includes a $(194) credit for held-to-maturity securities and a $262 provision for unfunded loan commitments. During the three and nine month periods ended September 30, 2025, the provision for credit losses was primarily driven by loan growth and deteriorating economic forecasts utilized by the Company. Additionally, there was an increase in the dollar balances of collateral dependent loans that were individually evaluated during the nine month period that required higher reserves than the pooled loans. Management believes that the allowance for credit losses at September 30, 2025 appropriately reflected expected credit losses in the loan portfolio at that date. The following tables present the composition of nonaccrual loans as of September 30, 2025 and December 31, 2024 respectively (in thousands).
|  | September 30, 2025 |  |
|  | With an ACL |  | Without an ACL |  | Total Nonaccrual |  |  |  |  |  |
Commercial and industrial |  | $ | 1,509 |  |  | $ | — |  |  | 1,509 |  |  |  |  |  |  |
Commercial real estate - owner occupied |  | — |  |  | 105 |  |  | 105 |  |  |  |  |  |  |
Commercial real estate - non-owner occupied |  | — |  |  | 380 |  |  | 380 |  |  |  |  |  |  |
Farmland |  | — |  |  | 1,525 |  |  | 1,525 |  |  |  |  |  |  |
1-4 family real estate |  | — |  |  | 2,306 |  |  | 2,306 |  |  |  |  |  |  |
Manufactured housing |  | 570 |  |  | 609 |  |  | 1,179 |  |  |  |  |  |  |
Other installment |  | 21 |  |  | 47 |  |  | 68 |  |  |  |  |  |  |
Total |  | $ | 2,100 |  |  | $ | 4,972 |  |  | $ | 7,072 |  |  |  |  |  |  |
|  | 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 |  |  |  |  |  |  |
Other installment |  | — |  |  | 15 |  |  | 15 |  |  |  |  |  |  |
Total |  | $ | — |  |  | $ | 6,461 |  |  | $ | 6,461 |  |  |  |  |  |  |
The following tables present the amortized cost basis of collateral dependent loans by class of loans and by collateral type as of the dates indicated as of September 30, 2025 and December 31, 2024 (in thousands).
|  | September 30, 2025
|  | Manufactured Homes |  | Real Estate |  | Machinery & Equipment |  | Total
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | 1,509 |  |  | $ | 1,509 |
Commercial real estate - owner occupied |  | — |  |  | 105 |  |  | — |  |  | 105 |
Commercial real estate - non-owner occupied |  | — |  |  | 13,438 |  |  | 380 |  |  | 13,818 |
Farmland |  | — |  |  | 1,525 |  |  | — |  |  | 1,525 |
1-4 family real estate |  | — |  |  | 2,306 |  |  | — |  |  | 2,306 |
Manufactured housing |  | 1,179 |  |  | — |  |  | — |  |  | 1,179 |
Other installment |  | — |  |  | — |  |  | 68 |  |  | 68 |
Total |  | $ | 1,179 |  |  | $ | 17,374 |  |  | $ | 1,957 |  |  | $ | 20,510 |
|  | December 31, 2024
|  | Manufactured Homes |  | Real Estate |  | Machinery & Equipment |  |  |  | Total
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
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 or watch 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 nine months ended September 30, 2025 (in thousands):
| Term Loans Amortized Cost Basis by Origination Year As of September 30, 2025 |  |  |  |
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans | Revolving Converted to Term | Total |
Commercial and industrial |
Pass/Watch | $ | 17,903 |  | $ | 32,505 |  | $ | 10,347 |  | $ | 14,492 |  | $ | 13,630 |  | $ | 9,163 |  | $ | 50,341 |  | $ | — |  | $ | 148,381 |  |
Special mention | 15 |  | — |  | 71 |  | 595 |  | — |  | 42 |  | — |  | — |  | 723 |  |
Substandard | 100 |  | 24 |  | — |  | 1,510 |  | 161 |  | 836 |  | 6,434 |  | — |  | 9,065 |  |
Total | $ | 18,018 |  | $ | 32,529 |  | $ | 10,418 |  | $ | 16,597 |  | $ | 13,791 |  | $ | 10,041 |  | $ | 56,775 |  | $ | — |  | $ | 158,169 |  |
Current period gross write-offs | $ | 94 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 94 |  |
Agricultural production |
Pass/Watch | $ | 1,745 |  | $ | 1,671 |  | $ | 43 |  | $ | — |  | $ | 6 |  | $ | 158 |  | $ | 17,398 |  | $ | 189 |  | $ | 21,210 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | 1,775 |  |  | 1,775 |  |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  | — |  |
Total | $ | 1,745 |  | $ | 1,671 |  | $ | 43 |  | $ | — |  | $ | 6 |  | $ | 158 |  | $ | 19,173 |  | $ | 189 |  | $ | 22,985 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
Construction & other land loans |
Pass/Watch | $ | 11,328 |  | $ | 37,530 |  | $ | 9,797 |  | $ | 13,571 |  | $ | 4,773 |  | $ | 584 |  | $ | 360 |  | $ | — |  | $ | 77,943 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
Substandard | — |  | — |  | — |  | — |  | — |  | 86 |  | — |  | — |  | 86 |  |
Total | $ | 11,328 |  | $ | 37,530 |  | $ | 9,797 |  | $ | 13,571 |  | $ | 4,773 |  | $ | 670 |  | $ | 360 |  | $ | — |  | $ | 78,029 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
Commercial real estate - owner occupied |
Pass/Watch | $ | 48,842 |  | $ | 46,262 |  | $ | 21,805 |  | $ | 46,491 |  | $ | 41,888 |  | $ | 136,340 |  | $ | 7,829 |  | $ | — |  | $ | 349,457 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
Substandard | — |  | — |  | 1,741 |  | — |  | — |  | 3,037 |  | — |  | — |  | 4,778 |  |
Total | $ | 48,842 |  | $ | 46,262 |  | $ | 23,546 |  | $ | 46,491 |  | $ | 41,888 |  | $ | 139,377 |  | $ | 7,829 |  | $ | — |  | $ | 354,235 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
Commercial real estate - non-owner occupied |
Pass/Watch | $ | 73,432 |  | $ | 88,752 |  | $ | 133,501 |  | $ | 180,531 |  | $ | 116,743 |  | $ | 310,919 |  | $ | 26,669 |  | $ | — |  | $ | 930,547 |  |
Special mention | — |  | 6,213 |  | — |  | 5,536 |  | 620 |  | 3,763 |  | — |  | — |  | 16,132 |  |
Substandard | — |  | — |  | — |  | 1,036 |  | — |  | 21,136 |  | 1,770 |  | — |  | 23,942 |  |
Total | $ | 73,432 |  | $ | 94,965 |  | $ | 133,501 |  | $ | 187,103 |  | $ | 117,363 |  | $ | 335,818 |  | $ | 28,439 |  | $ | — |  | $ | 970,621 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
Farmland |  |  |  |  |  |  |  |  |  |
Pass/Watch | $ | 4,537 |  | $ | 4,569 |  | $ | 4,345 |  | $ | 22,719 |  | $ | 10,943 |  | $ | 62,560 |  | $ | 8,136 |  | $ | 1,500 |  | $ | 119,309 |  |
Special mention | 1,800 |  | — |  | 425 |  | — |  | — |  | 4,071 |  | — |  | — |  | 6,296 |  |
Substandard | 500 |  | — |  | 5,178 |  | 3,162 |  | — |  | 5,923 |  | — |  | — |  | 14,763 |  |
Total | $ | 6,837 |  | $ | 4,569 |  | $ | 9,948 |  | $ | 25,881 |  | $ | 10,943 |  | $ | 72,554 |  | $ | 8,136 |  | $ | 1,500 |  | $ | 140,368 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
Multi-family residential |
Pass/Watch | $ | 18,895 |  | $ | 12,318 |  | $ | 2,914 |  | $ | 30,951 |  | $ | 45,572 |  | $ | 28,686 |  | $ | 7,205 |  | $ | — |  | $ | 146,541 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
Substandard |  | — |  | — |  | — |  | — |  | 7,290 |  | — |  | — |  | 7,290 |  |
Total | $ | 18,895 |  | $ | 12,318 |  | $ | 2,914 |  | $ | 30,951 |  | $ | 45,572 |  | $ | 35,976 |  | $ | 7,205 |  | $ | — |  | $ | 153,831 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
1-4 family - close-ended |
Pass/Watch | $ | 1,101 |  | $ | 2,378 |  | $ | 4,397 |  | $ | 60,096 |  | $ | 10,576 |  | $ | 21,381 |  | $ | 6,325 |  | $ | 230 |  | $ | 106,484 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
Substandard | — |  | 64 |  | — |  | 2,542 |  | — |  | 537 |  | — |  | — |  | 3,143 |  |
Total | $ | 1,101 |  | $ | 2,442 |  | $ | 4,397 |  | $ | 62,638 |  | $ | 10,576 |  | $ | 21,918 |  | $ | 6,325 |  | $ | 230 |  | $ | 109,627 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
1-4 family - revolving |  |  |  |  |  |  |  |  |  |
Pass/Watch | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 33,571 |  | $ | 5,355 |  | $ | 38,926 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 38 |  | 38 |  |
Total | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 33,571 |  | $ | 5,393 |  | $ | 38,964 |  |
Current period gross write-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
Manufactured Housing |  |  |  |  |  |  |  |  |  |
Pass/Watch | $ | 33,572 |  | $ | 43,101 |  | $ | 37,796 |  | $ | 42,931 |  | $ | 35,109 |  | $ | 130,807 |  | $ | — |  | $ | — |  | $ | 323,316 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
Substandard | — |  | 117 |  | 370 |  | — |  | 403 |  | 2,486 |  | — |  | — |  | 3,376 |  |
Total | $ | 33,572 |  | $ | 43,218 |  | $ | 38,166 |  | $ | 42,931 |  | $ | 35,512 |  | $ | 133,293 |  | $ | — |  | $ | — |  | $ | 326,692 |  |
Current period gross write-offs | $ | 17 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 17 |  |
Consumer |  |  |  |  |  |  |  |  |  |
Pass/Watch | $ | 26,641 |  | $ | 38,988 |  | $ | 17,193 |  | $ | 4,030 |  | $ | 3,822 |  | $ | 5,932 |  | $ | 426 |  | $ | — |  | $ | 97,032 |  |
Special mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |
Substandard | — |  | 21 |  | 29 |  | 384 |  | 111 |  | 44 |  | — |  | — |  | 589 |  |
Total | $ | 26,641 |  | $ | 39,009 |  | $ | 17,222 |  | $ | 4,414 |  | $ | 3,933 |  | $ | 5,976 |  | $ | 426 |  | $ | — |  | $ | 97,621 |  |
Current period gross write-offs | $ | 98 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 98 |  |
Total loans outstanding (risk rating): |  |  |  |  |  |  |
Pass/Watch | $ | 237,996 |  | $ | 308,074 |  | $ | 242,138 |  | $ | 415,812 |  | $ | 283,062 |  | $ | 706,530 |  | $ | 158,260 |  | $ | 7,274 |  | $ | 2,359,146 |  |
Special mention | 1,815 |  | 6,213 |  | 496 |  | 6,131 |  | 620 |  | 7,876 |  | 1,775 |  | — |  | 24,926 |  |
Substandard | 600 |  | 226 |  | 7,318 |  | 8,634 |  | 675 |  | 41,375 |  | 8,204 |  | 38 |  | 67,070 |  |
Grand Total | $ | 240,411 |  | $ | 314,513 |  | $ | 249,952 |  | $ | 430,577 |  | $ | 284,357 |  | $ | 755,781 |  | $ | 168,239 |  | $ | 7,312 |  | $ | 2,451,142 |  |
Current period total gross write-offs | $ | 209 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 209 |  |
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 charge-offs recognized during the twelve months ended December 31, 2024 (in thousands):
| 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 September 30, 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 |  | $ | 355 |  |  | $ | — |  |  | $ | 1,510 |  |  | $ | 1,865 |  |  | $ | 156,015 |  |  | $ | 157,880 |  |  | $ | — |  |  | $ | 1,509 |
Agricultural production |  | — |  |  | — |  |  | — |  |  | — |  |  | 22,915 |  |  | 22,915 |  |  | — |  |  | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction & other land loans |  | — |  |  | — |  |  | — |  |  | — |  |  | 78,628 |  |  | 78,628 |  |  | — |  |  | — |
Commercial real estate - owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 354,841 |  |  | 354,841 |  |  | — |  |  | 105 |
Commercial real estate - non-owner occupied |  | 13,588 |  |  | — |  |  | 380 |  |  | 13,968 |  |  | 958,046 |  |  | 972,014 |  |  | — |  |  | 380 |
Farmland |  | — |  |  | — |  |  | 1,525 |  |  | 1,525 |  |  | 138,929 |  |  | 140,454 |  |  | — |  |  | 1,525 |
Multi-family residential |  | — |  |  | — |  |  | — |  |  | — |  |  | 154,073 |  |  | 154,073 |  |  | — |  |  | — |
1-4 family - close-ended |  | 1,111 |  |  | 775 |  |  | 1,791 |  |  | 3,677 |  |  | 105,890 |  |  | 109,567 |  |  | — |  |  | 2,306 |
1-4 family - revolving |  | 169 |  |  | — |  |  | — |  |  | 169 |  |  | 38,555 |  |  | 38,724 |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing |  | 1,675 |  |  | 911 |  |  | 131 |  |  | 2,717 |  |  | 324,038 |  |  | 326,755 |  |  | — |  |  | 1,179 |
Other installment |  | 100 |  | 101 |  |  | 21 |  |  | 222 |  | 94,201 |  |  | 94,423 |  |  | — |  |  | 68 |
Deferred costs |  | — |  |  | — |  |  | — |  |  | — |  |  | 868 |  |  | 868 |  |  | — |  |  | — |
Total |  | $ | 16,998 |  |  | $ | 1,787 |  |  | $ | 5,358 |  |  | $ | 24,143 |  |  | $ | 2,426,999 |  |  | $ | 2,451,142 |  |  | $ | — |  |  | $ | 7,072 |
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 costs |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,876 |  |  | 1,876 |  |  | — |  |  | — |
Total |  | $ | 4,588 |  |  | $ | 1,936 |  |  | $ | 3,314 |  |  | $ | 9,838 |  |  | $ | 2,324,383 |  |  | $ | 2,334,221 |  |  | $ | — |  |  | $ | 6,461 |
There was $95,000 and $294,000 foregone interest on nonaccrual loans for the three and nine month periods ended September 30, 2025, respectively. There was $59,000 and $142,000 foregone interest on nonaccrual loans for the three and nine months periods ended September 30, 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 or nine month periods ended September 30, 2025 or 2024.

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