XML 32 R12.htm IDEA: XBRL DOCUMENT

Loans

12 Months Ended

Dec. 31, 2024

NOTE 4: Loans

The Corporation’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the table below. The Corporation has elected to exclude accrued interest receivable, totaling $8.27 million and $7.65 million at December 31, 2024 and 2023, respectively, from the recorded balance of loans.


	December 31,		December 31,
(Dollars in thousands)	2024		2023
Commercial real estate	$	734,182	$	668,122
Commercial business		104,947		115,348
Construction - commercial real estate		132,717		69,768
Land acquisition and development		46,072		29,064
Builder lines		35,605		24,668
Construction - consumer real estate		18,799		11,223
Residential mortgage		308,809		293,256
Equity lines		62,204		51,592
Other consumer		10,270		10,588
Consumer finance - automobiles		398,651		401,276
Consumer finance - marine and recreational vehicles		68,142		67,234
Subtotal		1,920,398		1,742,139
Less allowance for credit losses		(40,087)		(39,651)
Loans, net	$	1,880,311	$	1,702,488

Other consumer loans included $255,000 and $228,000 of demand deposit overdrafts at December 31, 2024 and 2023, respectively.

The following table shows the aging of the Corporation’s loan portfolio, by class, at December 31, 2024:


	30-59		60-89		90+								90+ Days
	Days		Days		Days		Total						Past Due and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current¹		Total Loans		Accruing
Commercial real estate	$	26	$	—	$	—	$	26	$	734,156	$	734,182	$	—
Commercial business		29		—		—		29		104,918		104,947		—
Construction - commercial real estate		—		—		—		—		132,717		132,717		—
Land acquisition and development		—		—		—		—		46,072		46,072		—
Builder lines		—		—		—		—		35,605		35,605		—
Construction - consumer real estate		747		—		—		747		18,052		18,799		—
Residential mortgage		1,012		1,076		426		2,514		306,295		308,809		334
Equity lines		85		—		76		161		62,043		62,204		76
Other consumer		9		—		—		9		10,261		10,270		—
Consumer finance - automobiles		14,703		2,650		599		17,952		380,699		398,651		—
Consumer finance - marine and recreational vehicles		215		22		15		252		67,890		68,142		—
Total	$	16,826	$	3,748	$	1,116	$	21,690	$	1,898,708	$	1,920,398	$	410

For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $124,000, 30-59 days past due of $117,000 and 90+ days past due of $706,000.

The following table shows the aging of the Corporation’s loan portfolio, by class, at December 31, 2023:


	30-59		60-89		90+								90+ Days
	Days		Days		Days		Total						Past Due and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current¹		Total Loans		Accruing
Commercial real estate	$	92	$	—	$	—	$	92	$	668,030	$	668,122	$	—
Commercial business		—		—		1		1		115,347		115,348		1
Construction - commercial real estate		—		—		—		—		69,768		69,768		—
Land acquisition and development		—		—		—		—		29,064		29,064		—
Builder lines		—		—		—		—		24,668		24,668		—
Construction - consumer real estate		—		—		—		—		11,223		11,223		—
Residential mortgage		1,643		387		273		2,303		290,953		293,256		89
Equity lines		215		103		115		433		51,159		51,592		38
Other consumer		3		—		9		12		10,576		10,588		—
Consumer finance - automobiles		15,263		2,628		892		18,783		382,493		401,276		—
Consumer finance - marine and recreational vehicles		282		115		—		397		66,837		67,234		—
Total	$	17,498	$	3,233	$	1,290	$	22,021	$	1,720,118	$	1,742,139	$	128

1For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $113,000, 60-89 days past due of $22,000 and 90+ days past due of $1.16 million.

The following table shows the Corporation’s recorded balance of loans on nonaccrual status as of December 31, 2024 and December 31, 2023. The Corporation recognized $27,000 in interest income on loans on nonaccrual status as of December 31, 2024, and had $11,000 of reversals of interest income upon placing loans on nonaccrual status during the year ended December 31, 2024. All nonaccrual loans as of December 31, 2024 and 2023 had an allowance for credit losses, with none individually evaluated.


	December 31,		December 31,
(Dollars in thousands)	2024		2023
Residential mortgage	$	333	$	320
Equity lines		—		77
Other consumer		—		9
Consumer finance - automobiles		599		892
Consumer finance - marine and recreational vehicles		15		—
Total	$	947	$	1,298

Occasionally, the Corporation modifies loans to borrowers experiencing financial difficulties by providing principal forgiveness, term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the allowance for credit losses due to the measurement methodologies used in its estimate, the allowance for credit losses is typically not adjusted upon modification. When principal forgiveness is provided at modification, the amount forgiven is charged against the allowance for credit losses. In some cases, the Corporation may provide multiple types of modifications on one loan and when multiple types of modifications occur within the same period, the combination of modifications is separately reported.

The following tables present the amortized cost basis of loans as of December 31, 2024 and 2023 that were both experiencing financial difficulty and modified during the years ended December 31, 2024 and 2023.


	Year Ended December 31, 2024
			% of Total
			Class of
	Amortized		Financing
(Dollars in thousands)	Cost		Receivable
Term Extension
Commercial real estate	$	93		0.0	%
Commercial business		20		0.0
Residential mortgage		439		0.1
Total Term Extension	$	552

Combination Term Extension and Interest Rate Reduction
Residential mortgage	$	17		0.0	%
Total Combination Term Extension and Interest Rate Reduction	$	17
Total	$	569		0.0	%


	Year Ended December 31, 2023
			% of Total
			Class of
	Amortized		Financing
(Dollars in thousands)	Cost		Receivable
Term Extension
Commercial real estate	$	1,127		0.2	%
Commercial business		169		0.1
Residential mortgage		70		0.0
Total Term Extension	$	1,366

Combination Term Extension and Interest Rate Reduction
Commercial real estate	$	45		0.0	%
Commercial business		174		0.2
Total Combination Term Extension and Interest Rate Reduction	$	219
Total	$	1,585		0.1	%

The following tables present the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the years ended December 31, 2024 and 2023.


	Year Ended December 31, 2024
	Weighted-			Weighted-
	Average			Average
	Interest Rate			Term Extension
(Dollars in thousands)	Reduction			(in years)
Commercial real estate		—	%		1.0
Commercial business		—			2.3
Residential mortgage		1.51			6.1
Total		1.51	%		5.1


	Year Ended December 31, 2023
	Weighted-			Weighted-
	Average			Average
	Interest Rate			Term Extension
(Dollars in thousands)	Reduction			(in years)
Commercial real estate		0.75	%		2.6
Commercial business		1.75			4.1
Residential mortgage		—			10.0
Total		1.54	%		3.2

The Corporation closely monitors the performance of modified loans to understand the effectiveness of its modification efforts. Upon the determination that all or a portion of a modified loan is uncollectible, that amount is charged against the allowance for credit losses. There were no payment defaults during the year ended December 31, 2024 and 2023 of loans to borrowers experiencing financial difficulties that were modified during the previous twelve months, and all were current as of December 31, 2024 and 2023.