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Loans and Allowance for Loan Credit Losses
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans and Allowance for Loan Credit Losses Loans and Allowance for Loan Credit Losses
A summary of the composition of the loan portfolio at June 30, 2025 and December 31, 2024 is presented below (dollars in thousands):
June 30, 2025December 31, 2024
Commercial real estate$52,540 $53,480 
Commercial5,023 27,883 
Residential real estate closed-end210,426 210,730 
Other consumer loans19,824 21,194 
287,813 313,287 
Less allowance for credit losses(4,193)(4,514)
Loans, net$283,620 $308,773 
Overdrafts totaling $20 thousand and $27 thousand at June 30, 2025 and December 31, 2024, respectively, were reclassified from deposits to loans.
The totals above include deferred costs (net of deferred fees) of $511 thousand at June 30, 2025 and $519 thousand at December 31, 2024.
The following tables present the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
June 30, 2025
Commercial
Real Estate		CommercialResidential
Real Estate
Closed-End		Other
Consumer
Loans		Total
For the three months ended
Allowance for credit losses:
Beginning balance, March 31, 2025$1,304 $259 $2,675 $238 $4,476 
Provision for (recapture of) credit losses3 (171)(115)— (283)
Loans charged-off— — — — — 
Recoveries collected— — — — — 
Ending balance, June 30, 2025$1,307 $88 $2,560 $238 $4,193 
June 30, 2024
Commercial
Real Estate		CommercialResidential
Real Estate
Closed-End		Other
Consumer
Loans		Total
For the three months ended
Allowance for credit losses:
Beginning balance, March 31, 2024$1,217 $177 $2,681 $249 $4,324 
Provision for (recapture of) credit losses(81)(10)75 29 13 
Loans charged-off— — — — — 
Recoveries collected— — — — — 
Ending balance, June 30, 2024$1,136 $167 $2,756 $278 $4,337 
June 30, 2025
Commercial
Real Estate		CommercialResidential
Real Estate
Closed-End		Other
Consumer
Loans		Total
For the six months ended
Allowance for credit losses:
Beginning balance, December 31, 2024$1,140 $483 $2,644 $247 $4,514 
Provision for (recapture of) credit losses167 (395)(84)(9)(321)
Loans charged-off— — — — — 
Recoveries collected— — — — — 
Ending balance, June 30, 2025$1,307 $88 $2,560 $238 $4,193 
June 30, 2024
Commercial
Real Estate		CommercialResidential
Real Estate
Closed-End		Other
Consumer
Loans		Total
For the six months ended
Allowance for credit losses:
Beginning balance, December 31, 2023$1,233 $189 $2,668 $229 $4,319 
Provision for (recapture of) credit losses(97)(22)88 49 18 
Loans charged-off— — — — — 
Recoveries collected— — — — — 
Ending balance, June 30, 2024$1,136 $167 $2,756 $278 $4,337 
There were no nonaccrual loans, loans 90 days past due and still accruing, or past due for 30 or more days as of June 30, 2025 and December 31, 2024.
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company’s loan risk grading system and ongoing monitoring
process is discussed in Note 1 of the audited consolidated financial statements for the year ended December 31, 2024. The following table presents the outstanding balance of the loan portfolio, by year of origination, loan classification, and credit quality, as of June 30, 2025 and December 31, 2024 (dollars in thousands):
June 30, 2025Term Loans by Year of OriginationRevolving LoansRevolving to Term LoansTotal
20252024202320222021Prior
Commercial real estate
Pass$4,491 $2,840 $2,503 $5,768 $7,044 $22,801 $— $— $45,447 
Special Mention— — — — 1,523 2,124 — — 3,647 
Substandard— — — 1,652 — 1,794 — — 3,446 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$4,491 $2,840 $2,503 $7,420 $8,567 $26,719 $— $— $52,540 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$234 $361 $— $540 $7 $1,041 $2,840 $— $5,023 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$234 $361 $— $540 $7 $1,041 $2,840 $— $5,023 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Residential real estate closed-end
Pass$7,445 $15,741 $16,007 $45,897 $41,718 $83,618 $— $— $210,426 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$7,445 $15,741 $16,007 $45,897 $41,718 $83,618 $— $— $210,426 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Other consumer loans
Pass$— $14 $— $— $13 $— $17,974 $1,823 $19,824 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$— $14 $— $— $13 $— $17,974 $1,823 $19,824 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Total Portfolio Loans
Pass$12,170 $18,956 $18,510 $52,205 $48,782 $107,460 $20,814 $1,823 $280,720 
Special Mention— — — — 1,523 2,124 — — 3,647 
Substandard— — — 1,652 — 1,794 — — 3,446 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total Portfolio Loans$12,170 $18,956 $18,510 $53,857 $50,305 $111,378 $20,814 $1,823 $287,813 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
December 31, 2024Term Loans by Year of OriginationRevolving LoansRevolving to Term LoansTotal
20242023202220212020Prior
Commercial real estate
Pass$2,873 $2,526 $6,461 $7,250 $3,424 $25,849 $— $— $48,383 
Special Mention— — — 1,576 — — — — 1,576 
Substandard— — 1,676 — — 1,845 — — 3,521 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$2,873 $2,526 $8,137 $8,826 $3,424 $27,694 $— $— $53,480 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$403 $— $552 $9 $— $1,147 $25,772 $— $27,883 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$403 $— $552 $9 $— $1,147 $25,772 $— $27,883 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Residential real estate closed-end
Pass$15,969 $17,834 $47,200 $43,125 $23,145 $63,222 $— $— $210,495 
Special Mention— — — — — — — — — 
Substandard— — — — — 236 — — 236 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$15,969 $17,834 $47,200 $43,125 $23,145 $63,458 $— $— $210,730 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Other consumer loans
Pass$17 $— $— $18 $— $— $19,336 $1,823 $21,194 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total$17 $— $— $18 $— $— $19,336 $1,823 $21,194 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Total Portfolio Loans
Pass$19,262 $20,360 $54,213 $50,402 $26,569 $90,218 $45,108 $1,823 $307,955 
Special Mention— — — 1,576 — — — — 1,576 
Substandard— — 1,676 — — 2,081 — — 3,757 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total Portfolio Loans$19,262 $20,360 $55,889 $51,978 $26,569 $92,298 $45,108 $1,823 $313,287 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 

Collateral Dependent Loans
FASB ASC Topic 326 describes a collateral-dependent asset as a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower, based on management’s assessment, is experiencing financial difficulty as of the reporting date. Whether the underlying collateral is expected to be
a substantial source of repayment for an asset depends on the availability, reliability, and capacity of sources other than the collateral to repay the debt. Collateral-dependent loans are individually evaluated for expected credit losses as of the reporting date, and they are removed from their respective pools of collectively evaluated assets. Expected credit losses for these types of assets are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs. There were no collateral-dependent loans that were individually evaluated for purposes of determining the allowance for credit losses under FASB ASC Topic 326 as of June 30, 2025 and December 31, 2024.
Modifications to Borrowers Experiencing Financial Difficulty
The Company may modify loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. There were no loan modifications provided to borrowers exhibiting financial distress during the six months ended June 30, 2025 and 2024, and there were no such prior modifications in existence during the periods reported. During the reported periods, there were no payment defaults from any such loans during the twelve months preceding the modification because no such modifications were in existence during the periods.
Related Party Loan Transactions
Officers, directors and their affiliates had loans outstanding with the Company of $10.0 million and $8.6 million as of June 30, 2025 and December 31, 2024, respectively. The increase in loans outstanding reflects the origination of a new loan during the period to a director with pre-existing lending relationships with the Company. These transactions occurred in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with unrelated persons.