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Loans and Allowance for Credit Losses on Loans (Tables)
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Outstanding loans Outstanding loans are summarized by class as follows:
Loan Type (Dollars in thousands)September 30, 2025December 31, 2024
Commercial:  
Commercial and industrial$157,880 $143,422 
Agricultural production22,915 37,323 
Total commercial180,795 180,745 
Real estate:  
Construction & other land loans78,628 67,869 
Commercial real estate - owner occupied354,841 323,188 
Commercial real estate - non-owner occupied972,014 913,165 
Farmland140,454 139,815 
Multi-family residential154,073 133,595 
1-4 family - close-ended109,567 123,445 
1-4 family - revolving38,724 35,421 
Total real estate1,848,301 1,736,498 
Consumer:
Manufactured housing326,755 322,263 
Other installment94,423 92,839 
Total consumer421,178 415,102 
Total gross loans2,450,274 2,332,345 
Net deferred origination costs 868 1,876 
Loans, net of deferred origination costs2,451,142 2,334,221 
Allowance for credit losses(29,590)(25,803)
Total loans, net$2,421,552 $2,308,418 
Allowance for credit losses
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):
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
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)
Recoveries62 — 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.
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
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)
Recoveries51 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):
 CommercialCommercial Real Estate1-4 Family Real EstateConsumerTotal
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)
Recoveries184 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.

CommercialCommercial Real Estate1-4 FamilyConsumerTotal
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)
Recoveries51 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.
Composition of nonaccrual loans
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 ACLWithout an ACLTotal 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 housing570 609 1,179 
Other installment21 47 68 
Total$2,100 $4,972 $7,072 

December 31, 2024
With an ACLWithout an ACLTotal 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 $6,461 
Collateral dependent loans
The following tables present the amortized cost basis of collateral dependent loans by class of loans and by collateral type as of the dates indicated as of September 30, 2025 and December 31, 2024 (in thousands).
September 30, 2025
Manufactured HomesReal EstateMachinery & EquipmentTotal
Commercial and industrial$— $— $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 housing1,179 — — 1,179 
Other installment— — 68 68 
Total$1,179 $17,374 $1,957 $20,510 

December 31, 2024
Manufactured HomesReal EstateMachinery & EquipmentTotal
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 housing1,215 — — 1,215 
Total$1,215 $4,853 $378 $6,446 
Loan portfolio by internal risk rating
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
20252024202320222021PriorRevolving LoansRevolving Converted to TermTotal
Commercial and industrial
Pass/Watch$17,903 $32,505 $10,347 $14,492 $13,630 $9,163 $50,341 $— $148,381 
Special mention15 — 71 595 — 42 — — 723 
Substandard100 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 mention1,800 — 425 — — 4,071 — — 6,296 
Substandard500 — 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 mention1,815 6,213 496 6,131 620 7,876 1,775 — 24,926 
Substandard600 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
20242023202220212020PriorRevolving LoansRevolving Converted to TermTotal
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 
Substandard29 — 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— — — — — — — — — 
Substandard78 — 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 $— $— $319,981 
Special mention— — — — — — — — — 
Substandard— — 318 464 481 1,015 — — 2,278 
Total47,839 43,468 46,926 39,763 38,032 106,231 — — 322,259 
Current period gross write-offs$— $— $— $— $— $— $— $— — 
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 
Substandard107 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 
Loan portfolio by time past due
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		CurrentTotal
Loans		Loans Past Due > 89 Days, Still AccruingNon-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 occupied13,588 — 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-ended1,111 775 1,791 3,677 105,890 109,567 — 2,306 
1-4 family - revolving169 — — 169 38,555 38,724 — — 
Consumer:    
Manufactured housing1,675 911 131 2,717 324,038 326,755 — 1,179 
Other installment100101 21 22294,201 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		CurrentTotal
Loans		Loans Past Due > 89 Days, Still AccruingNon-
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 occupied242 — — 242 322,946 323,188 — 120 
Commercial real estate - non-owner occupied— — 378 378 912,787 913,165 — 378 
Farmland164 — 2,398 2,562 137,253 139,815 — 2,398 
Multi-family residential— — — — 133,595 133,595 — — 
1-4 family - close-ended2,071 1,909 78 4,058 119,387 123,445 — 2,335 
1-4 family - revolving648 — — 648 34,773 35,421 — — 
Consumer:
Manufactured housing535 460 995 321,268 322,263 — 1,215 
Other installment656 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