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v3.25.3

Loans and Allowance for Loan Credit Losses | 9 Months Ended
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Sep. 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 September 30, 2025 and December 31, 2024 is presented below (dollars in thousands):
| September 30, 2025 |  | December 31, 2024
Commercial real estate | $ | 49,061 |  |  | $ | 53,480 |
Commercial | 4,418 |  |  | 27,883 |
Residential real estate closed-end | 209,663 |  |  | 210,730 |
Other consumer loans | 20,942 |  |  | 21,194 |
| 284,084 |  |  | 313,287 |
Less allowance for credit losses | (4,110) |  |  | (4,514) |
Loans, net | $ | 279,974 |  |  | $ | 308,773 |
Overdrafts totaling $5 thousand and $27 thousand at September 30, 2025 and December 31, 2024, respectively, were reclassified from deposits to loans. The totals above include deferred costs (net of deferred fees) of $545 thousand at September 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 nine months ended September 30, 2025 and 2024 (dollars in thousands):
| September 30, 2025
| Commercial Real Estate |  | Commercial |  | Residential Real Estate Closed-End |  | Other Consumer Loans |  | Total
For the three months ended |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, June 30, 2025 | $ | 1,307 |  |  | $ | 88 |  |  | $ | 2,560 |  |  | $ | 238 |  |  | $ | 4,193 |
Provision for (recapture of) credit losses | (10) |  |  | (11) |  |  | (89) |  |  | 27 |  |  | (83) |
Loans charged-off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries collected | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2025 | $ | 1,297 |  |  | $ | 77 |  |  | $ | 2,471 |  |  | $ | 265 |  |  | $ | 4,110 |
| September 30, 2024
| Commercial Real Estate |  | Commercial |  | Residential Real Estate Closed-End |  | Other Consumer Loans |  | Total
For the three months ended |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, June 30, 2024 | $ | 1,136 |  |  | $ | 167 |  |  | $ | 2,756 |  |  | $ | 278 |  |  | $ | 4,337 |
Provision for (recapture of) credit losses | (114) |  |  | (3) |  |  | 18 |  |  | (32) |  |  | (131) |
Loans charged-off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries collected | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2024 | $ | 1,022 |  |  | $ | 164 |  |  | $ | 2,774 |  |  | $ | 246 |  |  | $ | 4,206 |
| September 30, 2025
| Commercial Real Estate |  | Commercial |  | Residential Real Estate Closed-End |  | Other Consumer Loans |  | Total
For the nine months ended |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, December 31, 2024 | $ | 1,140 |  |  | $ | 483 |  |  | $ | 2,644 |  |  | $ | 247 |  |  | $ | 4,514 |
Provision for (recapture of) credit losses | 157 |  |  | (406) |  |  | (173) |  |  | 18 |  |  | (404) |
Loans charged-off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries collected | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2025 | $ | 1,297 |  |  | $ | 77 |  |  | $ | 2,471 |  |  | $ | 265 |  |  | $ | 4,110 |
| September 30, 2024
| Commercial Real Estate |  | Commercial |  | Residential Real Estate Closed-End |  | Other Consumer Loans |  | Total
For the nine 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 | (211) |  |  | (25) |  |  | 106 |  |  | 17 |  |  | (113) |
Loans charged-off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries collected | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2024 | $ | 1,022 |  |  | $ | 164 |  |  | $ | 2,774 |  |  | $ | 246 |  |  | $ | 4,206 |
There were no nonaccrual loans, loans 90 days past due and still accruing, or past due for 30 or more days as of September 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 September 30, 2025 and December 31, 2024 (dollars in thousands):
September 30, 2025 | Term Loans by Year of Origination |  | Revolving Loans |  | Revolving to Term Loans |  | Total
| 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 4,492 |  |  | $ | 2,824 |  |  | $ | 2,492 |  |  | $ | 3,089 |  |  | $ | 6,435 |  |  | $ | 24,319 |  |  | $ | — |  |  | $ | — |  |  | $ | 43,651 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | 1,497 |  |  | — |  |  | — |  |  | — |  |  | 1,497 |
Substandard | — |  |  | — |  |  | — |  |  | 1,645 |  |  | 500 |  |  | 1,768 |  |  | — |  |  | — |  |  | 3,913 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 4,492 |  |  | $ | 2,824 |  |  | $ | 2,492 |  |  | $ | 4,734 |  |  | $ | 8,432 |  |  | $ | 26,087 |  |  | $ | — |  |  | $ | — |  |  | $ | 49,061 |
Current period gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 222 |  |  | $ | 338 |  |  | $ | — |  |  | $ | 535 |  |  | $ | 6 |  |  | $ | 987 |  |  | $ | 2,330 |  |  | $ | — |  |  | $ | 4,418 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 222 |  |  | $ | 338 |  |  | $ | — |  |  | $ | 535 |  |  | $ | 6 |  |  | $ | 987 |  |  | $ | 2,330 |  |  | $ | — |  |  | $ | 4,418 |
Current period gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential real estate closed-end |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 10,605 |  |  | $ | 15,602 |  |  | $ | 15,943 |  |  | $ | 45,549 |  |  | $ | 41,218 |  |  | $ | 80,746 |  |  | $ | — |  |  | $ | — |  |  | $ | 209,663 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 10,605 |  |  | $ | 15,602 |  |  | $ | 15,943 |  |  | $ | 45,549 |  |  | $ | 41,218 |  |  | $ | 80,746 |  |  | $ | — |  |  | $ | — |  |  | $ | 209,663 |
Current period gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Other consumer loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 48 |  |  | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | — |  |  | $ | 19,048 |  |  | $ | 1,823 |  |  | $ | 20,942 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 48 |  |  | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | — |  |  | $ | 19,048 |  |  | $ | 1,823 |  |  | $ | 20,942 |
Current period gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total Portfolio Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 15,367 |  |  | $ | 18,776 |  |  | $ | 18,435 |  |  | $ | 49,173 |  |  | $ | 47,670 |  |  | $ | 106,052 |  |  | $ | 21,378 |  |  | $ | 1,823 |  |  | $ | 278,674 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | 1,497 |  |  | — |  |  | — |  |  | — |  |  | 1,497 |
Substandard | — |  |  | — |  |  | — |  |  | 1,645 |  |  | 500 |  |  | 1,768 |  |  | — |  |  | — |  |  | 3,913 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total Portfolio Loans | $ | 15,367 |  |  | $ | 18,776 |  |  | $ | 18,435 |  |  | $ | 50,818 |  |  | $ | 49,667 |  |  | $ | 107,820 |  |  | $ | 21,378 |  |  | $ | 1,823 |  |  | $ | 284,084 |
Current period gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
December 31, 2024 | Term Loans by Year of Origination |  | Revolving Loans |  | Revolving to Term Loans |  | Total
| 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  |  |
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 September 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 nine months ended September 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 $9.9 million and $8.6 million as of September 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.

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