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Loans

3 Months Ended

Mar. 31, 2025

NOTE 3: 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 $8.28 million and $8.27 million at March 31, 2025 and December 31, 2024, respectively, from the recorded balance of loans.


	March 31,		December 31,
(Dollars in thousands)	2025		2024
Commercial real estate	$	758,310	$	734,182
Commercial business		106,844		104,947
Construction - commercial real estate		121,140		132,717
Land acquisition and development		46,042		46,072
Builder lines		42,720		35,605
Construction - consumer real estate		21,188		18,799
Residential mortgage		308,549		308,809
Equity lines		66,440		62,204
Other consumer		9,957		10,270
Consumer finance - automobiles		396,590		398,651
Consumer finance - marine and recreational vehicles		65,546		68,142
Subtotal		1,943,326		1,920,398
Less allowance for credit losses		(40,043)		(40,087)
Loans, net	$	1,903,283	$	1,880,311

Other consumer loans included $220,000 and $255,000 of demand deposit overdrafts at March 31, 2025 and December 31, 2024, respectively.

The following table shows the aging of the Corporation’s loan portfolio, by class, at March 31, 2025:


	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	$	—	$	21	$	—	$	21	$	758,289	$	758,310	$	—
Commercial business		10		—		—		10		106,834		106,844		—
Construction - commercial real estate		—		—		—		—		121,140		121,140		—
Land acquisition and development		—		—		—		—		46,042		46,042		—
Builder lines		—		—		—		—		42,720		42,720		—
Construction - consumer real estate		—		—		—		—		21,188		21,188		—
Residential mortgage		1,694		—		1,066		2,760		305,789		308,549		111
Equity lines		328		—		—		328		66,112		66,440		—
Other consumer		—		—		—		—		9,957		9,957		—
Consumer finance - automobiles		11,438		1,437		911		13,786		382,804		396,590		—
Consumer finance - marine and recreational vehicles		99		139		64		302		65,244		65,546		—
Total	$	13,569	$	1,597	$	2,041	$	17,207	$	1,926,119	$	1,943,326	$	111

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 $140,000, 30-59 days past due of $94,000, and 90+ days past due of $1.93 million.

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

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 $124,000, 30-59 days past due of $117,000 and 90+ days past due of $706,000.

The following table shows the Corporation’s recorded balance of loans on nonaccrual status as of March 31, 2025 and December 31, 2024. The Corporation recognized $3,000 in interest income on loans on nonaccrual status as of March 31, 2025 and had $17,000 in reversals of interest income upon placing consumer loans on nonaccrual status during the three months ended March 31, 2025. All nonaccrual loans at March 31, 2025 and December 31, 2024 had an allowance for credit losses, with none individually evaluated.


	March 31,		December 31,
(Dollars in thousands)	2025		2024
Residential mortgage	$	1,189	$	333
Consumer finance - automobiles		911		599
Consumer finance - marine and recreational vehicles		64		15
Total	$	2,164	$	947

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.

There were no loans to borrowers experiencing financial difficulty and that were modified during the three months ended March 31, 2025. The following table presents the amortized cost basis of loans as of March 31, 2024 that were both experiencing financial difficulty and modified during the three months ended March 31, 2024.


	Three Months Ended March 31, 2024
			% of Total
	Amortized		Class of
(Dollars in thousands)	Cost		Loans
Term Extension
Residential mortgage	$	341		0.1	%
Total Term Extension	$	341

Combination Term Extension and Interest Rate Reduction
Residential mortgage	$	19		0.0	%
Total Combination Term Extension and Interest Rate Reduction	$	19
Total	$	360		0.1	%

The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2024.


	Three Months Ended March 31, 2024
	Weighted-			Weighted-
	Average			Average
	Interest Rate			Term Extension
(Dollars in thousands)	Reduction			(in years)
Residential mortgage		1.51	%		6.9
Total		1.51	%		6.9

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 three months ended March 31, 2025 and 2024 of modified loans that were modified during the previous twelve months and all were current as of March 31, 2025.