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Loans

9 Months Ended

Sep. 30, 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 following table. The Corporation has elected to exclude accrued interest receivable, totaling $8.53 million and $8.27 million at September 30, 2025 and December 31, 2024, respectively, from the recorded balance of loans.


	September 30,		December 31,
(Dollars in thousands)	2025		2024
Commercial real estate	$	793,765	$	734,182
Commercial business		107,535		104,947
Construction - commercial real estate		119,076		132,717
Land acquisition and development		59,722		46,072
Builder lines		43,473		35,605
Construction - consumer real estate		25,366		18,799
Residential mortgage		314,868		308,809
Equity lines		71,231		62,204
Other consumer		9,943		10,270
Consumer finance - automobiles		402,535		398,651
Consumer finance - marine and recreational vehicles		60,709		68,142
Subtotal		2,008,223		1,920,398
Less allowance for credit losses		(39,446)		(40,087)
Loans, net	$	1,968,777	$	1,880,311

Other consumer loans included $243,000 and $255,000 of demand deposit overdrafts at September 30, 2025 and December 31, 2024, respectively.

The following table shows the aging of the Corporation’s loan portfolio, by class, at September 30, 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	$	—	$	—	$	75	$	75	$	793,690	$	793,765	$	75
Commercial business		—		101		—		101		107,434		107,535		—
Construction - commercial real estate		—		—		—		—		119,076		119,076		—
Land acquisition and development		—		—		—		—		59,722		59,722		—
Builder lines		—		—		—		—		43,473		43,473		—
Construction - consumer real estate		—		—		—		—		25,366		25,366		—
Residential mortgage		468		144		941		1,553		313,315		314,868		—
Equity lines		266		6		—		272		70,959		71,231		—
Other consumer		13		—		—		13		9,930		9,943		—
Consumer finance - automobiles		14,589		2,079		1,269		17,937		384,598		402,535		—
Consumer finance - marine and recreational vehicles		454		81		58		593		60,116		60,709		—
Total	$	15,790	$	2,411	$	2,343	$	20,544	$	1,987,679	$	2,008,223	$	75

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 $116,000, 30-59 days past due of $86,000, 60-89 days past due of $21,000 and 90+ days past due of $2.27 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 September 30, 2025 and December 31, 2024. The Corporation recognized $8,000 in interest income on loans on nonaccrual status as of September 30, 2025 and had $2,000 in reversals of interest income upon placing loans on nonaccrual status during the three months ended September 30, 2025 and $19,000 in reversals of interest income upon placing consumer loans on nonaccrual status during the nine months ended September 30, 2025. All nonaccrual loans at September 30, 2025 and December 31, 2024 had an allowance for credit losses, with none individually evaluated.


	September 30,		December 31,
(Dollars in thousands)	2025		2024
Residential mortgage	$	1,164	$	333
Consumer finance - automobiles		1,269		599
Consumer finance - marine and recreational vehicles		58		15
Total	$	2,491	$	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.

The following tables present the amortized cost basis of loans as of September 30, 2025 and 2024 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

% of Total

Amortized

Class of

Amortized

Class of

(Dollars in thousands)

Cost

Loans

Cost

Loans

Term Extension

Commercial real estate

—

3,545

0.4

Total Term Extension

—

3,545

Total

—

3,545

0.2


	Three Months Ended September 30, 2024					Nine Months Ended September 30, 2024
			% of Total					% of Total
	Amortized		Class of			Amortized		Class of
(Dollars in thousands)	Cost		Loans			Cost		Loans
Term Extension
Commercial real estate	$	96		0.0	%	$	96		0.0	%
Residential mortgage		—		—	%		336		0.1	%
Total Term Extension	$	96				$	432

Combination Term Extension and Interest Rate Reduction
Residential mortgage	$	—		—	%	$	18		0.0	%
Total Combination Term Extension and Interest Rate Reduction	$	—				$	18
Total	$	96		0.0	%	$	450		0.0	%

The following tables present the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

Weighted-

Average

Interest

Term

Interest

Term

Rate

Extension

Rate

Extension

Reduction

(in years)

Reduction

(in years)

Commercial real estate

—

1.1

Total

—

1.1

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

Weighted-

Average

Interest

Term

Interest

Term

Rate

Extension

Rate

Extension

Reduction

(in years)

Reduction

(in years)

Commercial real estate

—

1.0

—

1.0

Residential mortgage

—

1.51

6.9

Total

—

1.0

1.51

5.7

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 and nine months ended September 30, 2025 and 2024 of modified loans that were modified during the previous twelve months and all were current as of September 30, 2025.