Loans and ACL

9 Months Ended

Sep. 30, 2025

Note 3 – Loans and ACL

The following table presents the amortized cost of loans held for investment as of the dates stated.


(Dollars in thousands)	September 30, 2025		December 31, 2024
Commercial and industrial	$	276,609	$	354,904
Real estate – construction, commercial		73,473		114,491
Real estate – construction, residential		50,892		51,807
Real estate – commercial		818,101		847,842
Real estate – residential		654,030		692,253
Real estate – farmland		4,645		5,520
Consumer		33,778		43,938
Gross loans held for investment		1,911,528		2,110,755
Deferred costs, net of loan fees		1,198		1,042
Total	$	1,912,726	$	2,111,797

The Company has pledged certain commercial and residential mortgage loans as collateral for borrowings with the FHLB. Loans totaling $736.0 million and $797.7 million were pledged with the FHLB as of September 30, 2025 and December 31, 2024, respectively. Additionally, the Company has pledged certain construction and commercial and industrial loans totaling $75.4 million and $91.6 million as of September 30, 2025 and December 31, 2024, respectively, as collateral for borrowings with the FRB Discount Window.

The following tables present the aging of the recorded investment of loans held for investment by loan category as of the dates stated.


	September 30, 2025
(Dollars in thousands)	Current Loans		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total Loans
Commercial and industrial	$	263,961	$	1,328	$	1,171	$	1,700	$	8,449	$	276,609
Real estate – construction, commercial		73,237		236		—		—		—		73,473
Real estate – construction, residential		50,738		154		—		—		—		50,892
Real estate – commercial		809,216		303		831		—		7,751		818,101
Real estate – residential		642,241		536		1,351		2,350		7,552		654,030
Real estate – farmland		4,645		—		—		—		—		4,645
Consumer		31,831		995		175		202		575		33,778
Deferred costs, net of loan fees		1,198		—		—		—		—		1,198
Total	$	1,877,067	$	3,552	$	3,528	$	4,252	$	24,327	$	1,912,726


	December 31, 2024
(Dollars in thousands)	Current Loans		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total Loans
Commercial and industrial	$	339,893	$	1,335	$	1,232	$	2,259	$	10,185	$	354,904
Real estate – construction, commercial		114,238		—		33		—		220		114,491
Real estate – construction, residential		51,807		—		—		—		—		51,807
Real estate – commercial		842,982		625		—		—		4,235		847,842
Real estate – residential		680,406		3,874		476		—		7,497		692,253
Real estate – farmland		5,520		—		—		—		—		5,520
Consumer		41,295		1,296		300		227		820		43,938
Deferred costs, net of loan fees		1,042		—		—		—		—		1,042
Total	$	2,077,183	$	7,130	$	2,041	$	2,486	$	22,957	$	2,111,797

The following tables present the recorded investment of nonaccrual loans held for investment with and without an ACL by loan category as of the dates stated.


	September 30, 2025
(Dollars in thousands)	Nonaccrual Loans with No ACL		Nonaccrual Loans with an ACL		Total Nonaccrual Loans
Commercial and industrial	$	481	$	7,968	$	8,449
Real estate – commercial		5,699		2,052		7,751
Real estate – residential		2,875		4,677		7,552
Consumer		—		575		575
Total	$	9,055	$	15,272	$	24,327


	December 31, 2024
(Dollars in thousands)	Nonaccrual Loans with No ACL		Nonaccrual Loans with an ACL		Total Nonaccrual Loans
Commercial and industrial	$	778	$	9,407	$	10,185
Real estate – construction, commercial		—		220		220
Real estate – commercial		—		4,235		4,235
Real estate – residential		1,669		5,828		7,497
Consumer		—		820		820
Total	$	2,447	$	20,510	$	22,957

The Company recognized $289 thousand and $437 thousand of interest income on nonaccrual loans during the three and nine months ended September 30, 2025, respectively, compared to $275 thousand and $463 thousand for the same respective periods in 2024.

The following table presents accrued interest receivable by loan type reversed from interest income associated with loans held for investment that were placed on nonaccrual status for the periods stated.


	For the three months ended September 30,				For the nine months ended September 30,
(Dollars in thousands)	2025		2024		2025		2024
Commercial and industrial	$	28	$	165	$	86	$	381
Real estate – construction, commercial		—		35		—		60
Real estate – commercial		27		77		29		175
Real estate – residential		35		52		102		104
Consumer		7		5		14		10
Total	$	97	$	334	$	231	$	730

Credit Quality Indicators

The Company segments loans held for investment into risk categories based on relevant information about the expected ability of borrowers to repay debt, such as current financial information, historical payment performance, experience, collateral adequacy, credit documentation, and current economic trends, among other factors. Management assigns loan risk grades by a numerical system as an indication of credit quality of its portfolio of loans held for investment. The Company uses the following definitions for loan risk ratings and periodically evaluates the appropriateness of these ratings across its loan portfolio. Independent third-party loan reviews are performed periodically on the Company's loan portfolio and such reviews validate management's determination of loan risk grades. Bank regulatory agencies also periodically review the Company's loan portfolio, including loan risk grades and may, on occasion, change a grade based on their judgment of the facts at the time of review.

Risk Grade 1 – Strong: This grade is for the strongest of loans. These loans are extended to individuals or businesses where the probability of default is extremely low to the Bank and secured with liquid collateral where the loss given default is unlikely because of the source of repayment such as a lien on a deposit account held at the Bank. Character, credit history, and ability of individuals or company principals are excellent. High liquidity, minimum risk, strong ratios, and low servicing cost are present.

Risk Grade 2 – Minimal: This grade is for loans deemed exceptionally strong. These loans are within established guidelines and where the borrowers have documented significant overall financial strength with consistent and

predictable cash flows. These loans have excellent sources of repayment, significant balance sheet liquidity, no significant identifiable risk of collection, and conform in all respects to policy, underwriting standards, and federal and state regulations (no exceptions of any kind). In addition, guarantor support, when provided, is deemed as excellent.

Risk Grade 3 – Acceptable: This grade is for loans deemed strong. These loans have adequate sources of repayment, with a minimal identifiable risk of collection. Generally, loans assigned this risk grade will demonstrate the following characteristics: (1) conformity in all respects with policy, guidelines, underwriting standards, and federal and state regulations (no exceptions of any kind), (2) documented historical cash flow that meets or exceeds required minimum guidelines, or that can be supplemented with verifiable cash flow from other sources, and (3) adequate secondary sources to liquidate the debt. In addition, guarantor support, when provided, is deemed strong.

Risk Grade 4 – Satisfactory: This grade is for satisfactory loans containing more but deemed acceptable risk, and where the borrower is deemed as sound. These loans have adequate sources of repayment, with minimal identifiable risk of collection. Loans assigned with this risk grade will demonstrate the following characteristics: (1) general conformity to the Bank's underwriting requirements, with limited exceptions to policy, product, or underwriting guidelines, and all exceptions noted have documented mitigating factors that offset any additional risk associated with the exceptions noted, (2) documented historical cash flow that meets or exceeds required minimum guidelines, or that can be supplemented with verifiable cash flow from other sources, and (3) adequate secondary sources to liquidate the debt. In addition, guarantor support, when provided, is deemed as satisfactory.

Risk Grade 5 – Watch: This grade is for satisfactory loans containing acceptable but elevated risk. These loans are characterized by borrowers who exhibit signs of financial stress or are experiencing unstable or unfavorable change(s) adversely impacting the current or expected financial condition. The borrower's management is considered to be satisfactory; however, the collateral securing the loan may have decreased in value, the debt service coverage ratio is inconsistent or breakeven but mostly positive, and/or guarantor support, if any, is deemed limited or marginal. Loans classified as Watch warrant additional monitoring by management.

Risk Grade 6 – Special Mention: This grade is for loans that have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the Bank's credit position potentially at a future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special Mention credits typically do not conform to established guidelines and/or exceptions without mitigating factors, or have emerging weaknesses that may or may not be remedied with the passage of time.

Risk Grade 7 – Substandard: This grade is for loans inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The probability of default is highly likely and may have already occurred. Loans in this category are characterized by deterioration in quality exhibited by any number of well-defined weaknesses requiring corrective action. The weaknesses may include, but are not limited to: (1) current or expected unprofitable operations, (2) inadequate debt service coverage, (3) declining or inadequate liquidity, (4) improper loan structure, (5) questionable or weak repayment sources, and (6) lack of well-defined secondary repayment source. There is a distinct possibility of loss and the Bank will sustain loss if the deficiencies remain uncorrected.

Risk Grade 8 – Doubtful: Loans classified Doubtful have all the weaknesses inherent in loans classified 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. However, these loans are not yet rated as loss because certain events may occur which would salvage the Bank's position, which can include, but not limited to (1) an injection of capital, (2) alternative financing, and (3) liquidation of assets or the pledging of additional collateral. Doubtful is a temporary grade, where the Bank expects a loss but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is recorded and charged off against the ACL.

Risk Grade 9 – Loss: Loans classified Loss are deemed uncollectible and of such little value that continuance as assets held for investment is no longer warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer charging off the worthless loan, even though partial recovery may occur in the future. Probable loss amounts, either principal or interest, deemed uncollectible are charged off promptly against the ACL.

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of September 30, 2025. There were no loans classified as doubtful or loss (risk grades 8 and 9,

respectively) as of the same date. Also presented are current period gross charge-offs by loan type for the nine months ended September 30, 2025.


	Term Loans Recorded Investment Basis by Origination Year
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
Commercial and industrial
Risk Grades 1 - 4	$	17,449	$	8,903	$	11,166	$	45,179	$	10,938	$	23,464	$	98,045	$	215,144
Risk Grades 5 - 6		671		353		1,030		23,518		3,881		4,013		5,046		38,512
Risk Grade 7		—		—		1,804		4,702		12,801		1,879		1,767		22,953
Total		18,120		9,256		14,000		73,399		27,620		29,356		104,858		276,609
Current period gross charge-offs		—		346		368		5,505		12		161		50		6,442

Real estate – construction, commercial
Risk Grades 1 - 4		13,619		5,497		2,191		32,029		3,660		4,332		56		61,384
Risk Grades 5 - 6		176		—		1,078		—		690		10,136		—		12,080
Risk Grade 7		—		—		—		—		9		—		—		9
Total		13,795		5,497		3,269		32,029		4,359		14,468		56		73,473
Current period gross charge-offs		—		—		—		—		—		—		—		—

Real estate – construction, residential
Risk Grades 1 - 4		15,774		10,066		519		75		94		73		300		26,901
Risk Grades 5 - 6		338		—		—		3,186		20,000		—		—		23,524
Risk Grade 7		—		—		—		467		—		—		—		467
Total		16,112		10,066		519		3,728		20,094		73		300		50,892
Current period gross charge-offs		—		—		—		—		—		—		—		—

Real estate – commercial
Risk Grades 1 - 4		40,542		4,554		29,808		200,617		103,935		232,286		17,397		629,139
Risk Grades 5 - 6		—		513		3,368		81,731		8,416		47,878		4,862		146,768
Risk Grade 7		—		1,555		—		31,354		8,566		719		—		42,194
Total		40,542		6,622		33,176		313,702		120,917		280,883		22,259		818,101
Current period gross charge-offs		—		—		—		—		374		63		—		437

Real estate – residential
Risk Grades 1 - 4		4,004		3,062		68,780		210,258		105,871		185,953		54,206		632,134
Risk Grades 5 - 6		805		453		266		781		1,394		5,390		209		9,298
Risk Grade 7		319		—		1,104		3,492		1,264		5,823		596		12,598
Total		5,128		3,515		70,150		214,531		108,529		197,166		55,011		654,030
Current period gross charge-offs		—		—		65		—		—		43		107		215

Real estate – farmland
Risk Grades 1 - 4		—		144		—		990		1,198		1,883		147		4,362
Risk Grades 5 - 6		62		—		126		—		95		—		—		283
Total		62		144		126		990		1,293		1,883		147		4,645
Current period gross charge-offs		—		—		—		—		—		—		—		—

Consumer
Risk Grades 1 - 4		3,714		3,879		11,982		5,900		820		589		5,473		32,357
Risk Grades 5 - 6		—		202		165		199		28		26		—		620
Risk Grade 7		—		43		233		343		137		45		—		801
Total		3,714		4,124		12,380		6,442		985		660		5,473		33,778
Current period gross charge-offs		156		382		191		1,277		53		11		—		2,070

Total Loans
Risk Grades 1 - 4	$	95,102	$	36,105	$	124,446	$	495,048	$	226,516	$	448,580	$	175,624	$	1,601,421
Risk Grades 5 - 6		2,052		1,521		6,033		109,415		34,504		67,443		10,117		231,085
Risk Grade 7		319		1,598		3,141		40,358		22,777		8,466		2,363		79,022
Total	$	97,473	$	39,224	$	133,620	$	644,821	$	283,797	$	524,489	$	188,104	$	1,911,528
Total current period gross charge-offs	$	156	$	728	$	624	$	6,782	$	439	$	278	$	157	$	9,164

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of December 31, 2024. There were no loans classified as loss (risk grade 9) as of the same date.


	Term Loans Recorded Investment Basis by Origination Year
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial and industrial
Risk Grades 1 - 4	$	13,883	$	13,559	$	64,530	$	14,600	$	17,405	$	15,760	$	98,867	$	238,604
Risk Grades 5 - 6		672		24,430		37,503		10,201		5,183		979		15,092		94,060
Risk Grade 7		944		2,248		5,173		10,462		562		1,247		1,521		22,157
Risk Grade 8		—		—		—		82		—		1		—		83
Total		15,499		40,237		107,206		35,345		23,150		17,987		115,480		354,904

Real estate – construction, commercial
Risk Grades 1 - 4		6,219		6,277		65,560		7,776		5,405		4,792		399		96,428
Risk Grades 5 - 6		—		1,090		—		7,567		4,770		4,235		—		17,662
Risk Grade 7		—		116		—		24		—		261		—		401
Total		6,219		7,483		65,560		15,367		10,175		9,288		399		114,491

Real estate – construction, residential
Risk Grades 1 - 4		19,574		8,861		7,837		13,971		—		57		990		51,290
Risk Grades 5 - 6		193		—		—		—		—		—		—		193
Risk Grade 7		—		169		155		—		—		—		—		324
Total		19,767		9,030		7,992		13,971		—		57		990		51,807

Real estate – commercial
Risk Grades 1 - 4		4,747		34,698		245,563		118,435		142,211		133,856		21,323		700,833
Risk Grades 5 - 6		535		5,092		64,677		7,002		14,604		23,104		4,184		119,198
Risk Grade 7		1,565		—		9,970		10,380		2,945		1,355		25		26,240
Risk Grade 8		—		—		—		1,379		—		192		—		1,571
Total		6,847		39,790		320,210		137,196		159,760		158,507		25,532		847,842

Real estate – residential
Risk Grades 1 - 4		2,815		66,780		225,159		114,682		64,548		143,002		53,498		670,484
Risk Grades 5 - 6		853		—		2,303		1,295		318		2,378		95		7,242
Risk Grade 7		—		736		2,153		2,113		1,454		5,822		2,249		14,527
Total		3,668		67,516		229,615		118,090		66,320		151,202		55,842		692,253

Real estate – farmland
Risk Grades 1 - 4		147		—		997		1,239		—		2,753		149		5,285
Risk Grades 5 - 6		—		135		—		100		—		—		—		235
Total		147		135		997		1,339		—		2,753		149		5,520

Consumer
Risk Grades 1 - 4		5,944		17,211		8,716		1,650		1,034		486		7,283		42,324
Risk Grades 5 - 6		74		133		225		99		32		3		—		566
Risk Grade 7		87		330		332		184		63		24		28		1,048
Total		6,105		17,674		9,273		1,933		1,129		513		7,311		43,938

Total Loans
Risk Grades 1 - 4	$	53,329	$	147,386	$	618,362	$	272,353	$	230,603	$	300,706	$	182,509	$	1,805,248
Risk Grades 5 - 6		2,327		30,880		104,708		26,264		24,907		30,699		19,371		239,156
Risk Grade 7		2,596		3,599		17,783		23,163		5,024		8,709		3,823		64,697
Risk Grade 8		—		—		—		1,461		—		193		—		1,654
Total	$	58,252	$	181,865	$	740,853	$	323,241	$	260,534	$	340,307	$	205,703	$	2,110,755

The following tables present an analysis of the change in the ACL by loan segment for the periods stated.


	For the three months ended September 30, 2025
(Dollars in thousands)	Commercial and industrial			Real estate – construction, commercial			Real estate – construction, residential			Real estate – commercial			Real estate – residential			Real estate – farmland			Consumer			Total
ACL, beginning of period	$	5,846		$	1,272		$	398		$	5,879		$	8,001		$	15		$	563		$	21,974
(Recovery of) provision for credit losses - loans		(2,594	)		(135	)		(8	)		314			(304	)		(1	)		928			(1,800	)
Charge-offs		(1,781	)		—			—			(374	)		(92	)		—			(1,035	)		(3,282	)
Recoveries		3,303			—			—			38			222			—			48			3,611
Net recoveries (charge-offs)		1,522			—			—			(336	)		130			—			(987	)		329
ACL, end of period	$	4,774		$	1,137		$	390		$	5,857		$	7,827		$	14		$	504		$	20,503

	For the three months ended September 30, 2024
(Dollars in thousands)	Commercial and industrial			Real estate – construction, commercial			Real estate – construction, residential			Real estate – commercial			Real estate – residential			Real estate – farmland			Consumer			Total
ACL, beginning of period	$	6,916		$	3,188		$	737		$	10,262		$	6,240		$	18		$	675		$	28,036
(Recovery of) provision for credit losses - loans		(6,059	)		(45	)		(77	)		(69	)		(241	)		1			490			(6,000	)
Charge-offs		(6,001	)		—			—			(1,109	)		(30	)		—			(773	)		(7,913	)
Recoveries		11,095			—			—			—			60			—			175			11,330
Net recoveries (charge-offs)		5,094			—			—			(1,109	)		30			—			(598	)		3,417
ACL, end of period	$	5,951		$	3,143		$	660		$	9,084		$	6,029		$	19		$	567		$	25,453


	For the nine months ended September 30, 2025
(Dollars in thousands)	Commercial and industrial			Real estate – construction, commercial			Real estate – construction, residential			Real estate – commercial			Real estate – residential			Real estate – farmland			Consumer			Total
ACL, beginning of period	$	5,767		$	2,057		$	540		$	5,963		$	7,933		$	18		$	745		$	23,023
(Recovery of) provision for credit losses - loans		(2,636	)		(920	)		(150	)		(45	)		(120	)		(4	)		1,375			(2,500	)
Charge-offs		(6,442	)		—			—			(437	)		(215	)		—			(2,070	)		(9,164	)
Recoveries		8,085			—			—			376			229			—			454			9,144
Net recoveries (charge-offs)		1,643			—			—			(61	)		14			—			(1,616	)		(20	)
ACL, end of period	$	4,774		$	1,137		$	390		$	5,857		$	7,827		$	14		$	504		$	20,503

	For the nine months ended September 30, 2024
(Dollars in thousands)	Commercial and industrial			Real estate – construction, commercial			Real estate – construction, residential			Real estate – commercial			Real estate – residential			Real estate – farmland			Consumer			Total
ACL, beginning of period	$	13,787		$	4,024		$	1,094		$	9,929		$	6,286		$	15		$	758		$	35,893
(Recovery of) provision for credit losses - loans		(2,351	)		(881	)		(395	)		264			(259	)		4			1,218			(2,400	)
Charge-offs		(19,940	)		—			(39	)		(1,109	)		(74	)		—			(2,063	)		(23,225	)
Recoveries		14,455			—			—			—			76			—			654			15,185
Net charge-offs		(5,485	)		—			(39	)		(1,109	)		2			—			(1,409	)		(8,040	)
ACL, end of period	$	5,951		$	3,143		$	660		$	9,084		$	6,029		$	19		$	567		$	25,453

There were no material changes to the assumptions, loss factors (both quantitative and qualitative), or reasonable and supportable forecasts used in the estimation of the ACL and the provision for (recovery of) credit losses for loans held for investment as of and for the three and nine months ended September 30, 2025.

Excluded from the ACL as of both September 30, 2025 and December 31, 2024 were $9.0 million and $10.7 million of accrued interest attributable to loans held for investment, respectively, which is included in accrued interest receivable on the consolidated balance sheets.

The following table presents the amortized cost of collateral-dependent loans that were individually evaluated for credit losses as of the dates stated.


(Dollars in thousands)	September 30, 2025		December 31, 2024
Commercial and industrial	$	20,145	$	42,723
Real estate – construction, commercial		—		116
Real estate – commercial		32,879		26,994
Real estate – residential		6,214		9,586
Total collateral-dependent loans	$	59,238	$	79,419

Acquired Loans

As of September 30, 2025 and December 31, 2024, the amortized cost of purchased credit deteriorated ("PCD") loans totaled $30.0 million and $43.8 million, respectively, with an estimated ACL of $0.2 million and $0.3 million, respectively. The remaining non-credit discount on PCD loans was $2.2 million and $3.0 million as of September 30, 2025 and December 31, 2024, respectively.

Troubled Loan Modifications

The Company closely monitors the performance of borrowers experiencing financial difficulty and grants certain loan modifications it would otherwise not consider. The Company refers to such loan modifications as troubled loan modifications ("TLMs").

The following table presents the amortized cost of loans designated as TLMs, categorized by loan type and type of concession granted, for the periods stated.


	For the three months ended September 30,
	2025							2024
(Dollars in thousands)	Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category			Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category
Combined - term extension and payment deferral
Commercial and industrial		—	$	—		(—	%)		1	$	229		0.06	%
Total combined - term extension and payment deferral		—	$	—					1	$	229

Combined - term extension, payment deferral, interest rate reduction
Commercial and industrial		—	$	—		(—	%)		1	$	190		0.05	%
Total combined - term extension, payment deferral, interest rate reduction		—	$	—					1	$	190

Term extension
Commercial and industrial		—	$	—		(—	%)		2	$	560		0.15	%
Real estate – commercial		3		472		0.06	%		—		—		(—	%)
Real estate – residential		1		51		0.01	%		1		72		0.01	%
Total term extension		4	$	523					3	$	632

Payment deferral
Real estate – residential		—	$	—		(—	%)		1	$	504		0.07	%
Consumer loans		—		—		(—	%)		—		—		(—	%)
Total payment deferral		—	$	—					1	$	504

Total		4	$	523					6	$	1,555


	For the nine months ended September 30,
	2025							2024
(Dollars in thousands)	Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category			Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category
Combined - term extension and payment deferral
Commercial and industrial		—	$	—		(—	%)		1	$	229		0.06	%
Total combined - term extension and payment deferral		—	$	—					1	$	229

Combined - term extension, payment deferral, interest rate reduction
Commercial and industrial		—	$	—		(—	%)		2	$	409		0.11	%
Total combined - term extension, payment deferral, interest rate reduction		—	$	—					2	$	409

Interest forgiven
Real estate – residential		1	$	139		0.02	%		—	$	—		(—	%)
Total interest forgiven		1	$	139					—	$	—

Term extension
Commercial and industrial		1	$	1,940		(—	%)		2	$	560		0.15	%
Real estate – commercial		3		472		0.06	%		1		38		(—	%)
Real estate – residential		1		51		0.01	%		1		72		0.01	%
Total term extension		5	$	2,463					4	$	670

Payment deferral
Commercial and industrial		—	$	—		(—	%)		1	$	161		0.04	%
Real estate – residential		—		—		(—	%)		1		504		0.07	%
Total payment deferral		—	$	—					2	$	665

Total		6	$	2,602					9	$	1,973

The following tables present additional information including the financial effects of TLMs as of and for the periods stated.


	As of and for the three months ended September 30, 2025
(Dollars in thousands)	Weighted Average Term Extension (Months)		Weighted Average Interest Rate Reduction		Weighted Average Payment Deferral		Weighted Average Interest Forgiven
Commercial and industrial		20		—	$	—	$	—
Real estate – commercial		13		—		—		—
Real estate – residential		15		—		—		—


	As of and for the three months ended September 30, 2024
(Dollars in thousands)	Weighted Average Term Extension (Months)		Weighted Average Interest Rate Reduction			Weighted Average Payment Deferral		Weighted Average Interest Forgiven
Commercial and industrial		76		12.24	%	$	6	$	—
Real estate – residential		84		—			162		—
Consumer loans		—		—			1		—


	As of and for the nine months ended September 30, 2025
(Dollars in thousands)	Weighted Average Term Extension (Months)		Weighted Average Interest Rate Reduction		Weighted Average Payment Deferral		Weighted Average Interest Forgiven
Commercial and industrial		20		—	$	—	$	—
Real estate – commercial		13		—		—		—
Real estate – residential		15		—		—		45


	As of and for the nine months ended September 30, 2024
(Dollars in thousands)	Weighted Average Term Extension (Months)		Weighted Average Interest Rate Reduction			Weighted Average Payment Deferral		Weighted Average Interest Forgiven
Commercial and industrial		65		11.28	%	$	10	$	—
Real estate – commercial		84		—			—		—
Real estate – residential		84		—			162		—
Consumer loans		—		—			1		—

The following tables present an aging analysis of the amortized cost of loans designated as TLMs as of the dates stated.


	September 30, 2025
(Dollars in thousands)	Current Loans		30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total
Commercial and industrial	$	939	$	—	$	—	$	4,279	$	5,218
Real estate – construction, residential		—		154		—		—		154
Real estate – commercial		506		—		—		2,999		3,505
Real estate – residential		238		—		—		630		868
Consumer loans		—		—		—		6		6
Total modified loans	$	1,683	$	154	$	—	$	7,914	$	9,751


	December 31, 2024
(Dollars in thousands)	Current Loans		30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total
Commercial and industrial	$	554	$	—	$	—	$	2,745	$	3,299
Real estate – construction, residential		155		—		—		—		155
Real estate – commercial		37		—		—		2,999		3,036
Real estate – residential		194		—		—		500		694
Consumer loans		—		—		—		10		10
Total modified loans	$	940	$	—	$	—	$	6,254	$	7,194

As of September 30, 2025 and December 31, 2024, there were no unfunded commitments to borrowers with TLMs.

The following table presents the amortized cost of loans designated as TLMs that were modified in the preceding twelve months and had a payment default during the periods stated.


	As of and for the nine months ended September 30,
	2025							2024
(Dollars in thousands)	Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category			Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category
Interest forgiveness
Real estate – residential	1		$	139		0.02	%		—	$	—		0.00	%
Total interest forgiveness	1		$	139					—	$	—
Total		1	$	139					—	$	—

As of September 30, 2025, six residential mortgage loans with a total amortized cost of $2.7 million were in the process of foreclosure.