Loans and Allowance for Credit Losses on Loans

6 Months Ended

Jun. 30, 2025

Loans and Allowance for Credit Losses on Loans

NOTE 5. Loans and Allowance for Credit Losses on Loans

The composition of loans at June 30, 2025 and December 31, 2024 was as follows:


	June 30,			December 31,
	2025			2024
	(in thousands)
Mortgage real estate loans:
Construction & Secured by Farmland	$	76,060		$	95,200
HELOCs		52,032			50,646
Residential First Lien - Investor		106,493			105,910
Residential First Lien - Owner Occupied		177,000			194,065
Residential Junior Liens		10,865			11,184
Commercial - Owner Occupied		288,821			272,236
Commercial - Non-Owner Occupied & Multifamily		372,833			367,680
Commercial and industrial loans:
SBA PPP loans		16			28
Other commercial and industrial loans		106,499			110,315
Marine loans		196,434			210,095
Consumer loans		29,739			31,017
Overdrafts		240			309
Other loans		15,372			11,911
Total loans	$	1,432,404		$	1,460,596
Net deferred loan costs and premiums		6,228			6,453
Allowance for credit losses		(15,979	)		(15,027	)
	$	1,422,653		$	1,452,022

At June 30, 2025, the Company was servicing $29.7 million of loans for other financial institutions which are not included in the table above. Also excluded from the table above are net servicing assets of $455 thousand at June 30, 2025, which are recorded in other assets in the Consolidated Balance Sheets. When loans are sold with servicing retained, servicing assets are recorded which represent the Company's right to service loans that were sold. Servicing assets are initially recorded by the Company at fair value and are subsequently amortized in proportion to, and over the period of, estimated net servicing income.

Changes in the allowance for credit losses on loans for the three and six months ended June 30, 2025 and 2024 and year-ended December 31, 2024 were as follows:


	Three Months Ended						Year Ended			Six Months Ended
	June 30,						December 31,			June 30,
	2025			2024			2024			2025			2024
	(in thousands)
Balance, beginning	$	15,282		$	14,448		$	14,493		$	15,027		$	14,493
Provision for credit losses		856			314			2,525			2,002			789
Recoveries added to the allowance		176			424			853			361			609
Credit losses charged to the allowance		(335	)		(172	)		(2,844	)		(1,411	)		(877	)
Balance, ending	$	15,979		$	15,014		$	15,027		$	15,979		$	15,014

Past due loans by class at June 30, 2025 and December 31, 2024 were as follows:


	June 30, 2025
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	428	$	—	$	—	$	428	$	75,632	$	76,060	$	—
HELOCs		354		—		—		354		51,678		52,032		—
Residential First Lien - Investor		—		—		98		98		106,395		106,493		—
Residential First Lien - Owner Occupied		—		—		570		570		176,430		177,000		543
Residential Junior Liens		488		—		—		488		10,377		10,865		—
Commercial - Owner Occupied		3,914		—		2,211		6,125		282,696		288,821		—
Commercial - Non-Owner Occupied & Multifamily		—		—		11,474		11,474		361,359		372,833		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		16		16		—
Other commercial and industrial loans		505		662		218		1,385		105,114		106,499		45
Marine loans		801		—		—		801		195,633		196,434		—
Consumer loans		392		67		87		546		29,193		29,739		5
Overdrafts		—		—		—		—		240		240		—
Other loans		—		—		—		—		15,372		15,372		—
Total	$	6,882	$	729	$	14,658	$	22,269	$	1,410,135	$	1,432,404	$	593


	December 31, 2024
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	—	$	95,200	$	95,200	$	—
HELOCs		21		—		—		21		50,625		50,646		—
Residential First Lien - Investor		—		98		—		98		105,812		105,910		—
Residential First Lien - Owner Occupied		—		28		247		275		193,790		194,065		—
Residential Junior Liens		13		—		—		13		11,171		11,184		—
Commercial - Owner Occupied		2,212		—		—		2,212		270,024		272,236		—
Commercial - Non-Owner Occupied & Multifamily		—		—		—		—		367,680		367,680		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		28		28		—
Other commercial and industrial loans		922		84		80		1,086		109,229		110,315		—
Marine loans		—		—		—		—		210,095		210,095		—
Consumer loans		673		6		138		817		30,200		31,017		—
Overdrafts		—		—		—		—		309		309		—
Other loans		—		—		—		—		11,911		11,911		—
Total	$	3,841	$	216	$	465	$	4,522	$	1,456,074	$	1,460,596	$	—

Nonaccrual loans by class at June 30, 2025 and December 31, 2024 were as follows:


	June 30, 2025						December 31, 2024
	(in thousands)						(in thousands)
	Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans		Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs		348		—		348		—		—		—
Residential First Lien - Investor		98		—		98		—		—		—
Residential First Lien - Owner Occupied		523		—		523		347		—		347
Residential Junior Liens		—		—		—		—		—		—
Commercial - Owner Occupied		2,925		—		2,925		739		—		739
Commercial - Non-Owner Occupied & Multifamily		—		11,474		11,474		—		—		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		50		1,234		1,284		—		903		903
Marine loans		—		—		—		—		—		—
Consumer loans		83		—		83		83		—		83
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total	$	4,027	$	12,708	$	16,735	$	1,169	$	903	$	2,072

The allowance for credit losses on loans by segment at June 30, 2025 and December 31, 2024 was as follows:


	As of and For the Six Months Ended
	June 30, 2025
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	2,387		$	2,318		$	7,251		$	1,433		$	1,279		$	238		$	121		$	—	$	15,027
Charge-Offs		—			(30	)		(971	)		(134	)		(114	)		(90	)		(72	)		—		(1,411	)
Recoveries		3			252			—			78			—			13			15			—		361
Provision		(783	)		(693	)		3,143			120			(270	)		73			412			—		2,002
Ending balance	$	1,607		$	1,847		$	9,423		$	1,497		$	895		$	234		$	476		$	—	$	15,979
Ending balance: Individually evaluated for impairment	$	—		$	—		$	1,147		$	381		$	—		$	—		$	—		$	—	$	1,528
Ending balance: Collectively evaluated for impairment	$	1,607		$	1,847		$	8,276		$	1,116		$	895		$	234		$	476		$	—	$	14,451
Loans:
Ending balance	$	76,060		$	346,390		$	661,654		$	106,515		$	196,434		$	29,739		$	15,612		$	—	$	1,432,404
Ending balance: Individually evaluated for impairment	$	—		$	942		$	14,399		$	1,234		$	—		$	83		$	—		$	—	$	16,658
Ending balance: Collectively evaluated for impairment	$	76,060		$	345,448		$	647,255		$	105,281		$	196,434		$	29,656		$	15,612		$	—	$	1,415,746


	As of and For the Year Ended
	December 31, 2024
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	772		$	4,725		$	6,224		$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Charge-Offs		(94	)		(277	)		(7	)		(238	)		(1,778	)		(309	)		(141	)		—		(2,844	)
Recoveries		102			347			162			67			—			150			25			—		853
Provision		1,607			(2,477	)		872			577			1,904			199			(157	)		—		2,525
Ending balance	$	2,387		$	2,318		$	7,251		$	1,433		$	1,279		$	238		$	121		$	—	$	15,027
Ending balance: Individually evaluated for impairment	$	—		$	—		$	—		$	248		$	—		$	—		$	—		$	—	$	248
Ending balance: Collectively evaluated for impairment	$	2,387		$	2,318		$	7,251		$	1,185		$	1,279		$	238		$	121		$	—	$	14,779
Loans:
Ending balance	$	95,200		$	361,805		$	639,916		$	110,343		$	210,095		$	31,017		$	12,220		$	—	$	1,460,596
Ending balance: Individually evaluated for impairment	$	—		$	318		$	739		$	908		$	—		$	83		$	—		$	—	$	2,048
Ending balance: Collectively evaluated for impairment	$	95,200		$	361,487		$	639,177		$	109,435		$	210,095		$	30,934		$	12,220		$	—	$	1,458,548

The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment:


	June 30, 2025						December 31, 2024
	(in thousands)						(in thousands)
(in thousands)	Real Estate Collateral		Other Collateral		Total		Real Estate Collateral		Other Collateral		Total
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs		348		—		348		—		—		—
Residential First Lien - Investor		98		—		98		—		—		—
Residential First Lien - Owner Occupied		496		—		496		318		—		318
Residential Junior Liens		—		—		—		—		—		—
Commercial - Owner Occupied		2,925		—		2,925		739		—		739
Commercial - Non-Owner Occupied & Multifamily		11,474		—		11,474		—		—		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		—		1,234		1,234		—		908		908
Marine loans		—		—		—		—		—		—
Consumer loans		83		—		83		83		—		83
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
	$	15,424	$	1,234	$	16,658	$	1,140	$	908	$	2,048

The Company did not identify any significant changes in the extent to which collateral secures its collateral dependent loans, whether in the form of general deterioration or from other factors during the period ended June 30, 2025.

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 analyzes loans individually to classify the loans as to credit risk. This analysis is performed on a quarterly basis. The following table presents risk ratings by loan portfolio segment and origination year. Description of these ratings are as follows:


Pass		Pass loans exhibit acceptable history of profits, cash flow ability and liquidity. Sufficient cash flow exists to service the loan. All obligations have been paid by the borrower in an as agreed manner.
Special Mention		Special mention loans exhibit negative trends and potential weakness that, if left uncorrected, may negatively affect the borrower’s ability to repay its obligations. Loan relationships with stale financial statements at their annual review will also cause a downgrade to special mention until current financials are received and upgrade is approved. The risk of default is not imminent and the borrower still demonstrates sufficient financial strength to service debt.
Classified		Classified loans include loans rated Substandard, Doubtful and Loss.
		• Substandard loans exhibit well defined weaknesses resulting in a higher probability of default. The borrowers exhibit adverse financial trends and a diminishing ability or willingness to service debt.
		• Doubtful loans exhibit all of the characteristics inherent in substandard loans; however given the severity of weaknesses, the collection of 100% of the principal is unlikely under current conditions.
		• Loss loans are considered uncollectible over a reasonable period of time and of such little value that its continuance as a bankable asset is not warranted.

Credit quality information by class at June 30, 2025 and gross charge-offs by year of origination for the six months ended June 30, 2025 was as follows:


June 30, 2025
	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	8,724	$	31,497	$	8,474	$	12,572	$	3,717	$	7,143	$	3,477	$	—	$	75,604
Special Mention		—		—		428		—		—		—		—		—		428
Classified		—		—		—		—		—		28		—		—		28
Total	$	8,724	$	31,497	$	8,902	$	12,572	$	3,717	$	7,171	$	3,477	$	—	$	76,060
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	51,644	$	—	$	51,644
Special Mention		—		—		—		—		—		—		40		—		40
Classified		—		—		—		—		—		—		348		—		348
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	52,032	$	—	$	52,032
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	30	$	—	$	30
Residential First Lien - Investor
Pass	$	9,435	$	6,615	$	12,056	$	17,485	$	25,326	$	27,614	$	—	$	1,177	$	99,708
Special Mention		—		—		690		—		2,425		1,756		—		—		4,871
Classified		—		1,816		—		98		—		—		—		—		1,914
Total	$	9,435	$	8,431	$	12,746	$	17,583	$	27,751	$	29,370	$	—	$	1,177	$	106,493
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	6,637	$	17,760	$	49,338	$	29,458	$	21,801	$	47,562	$	—	$	295	$	172,851
Special Mention		—		42		—		—		—		3,328		—		—		3,370
Classified		—		—		—		—		—		779		—		—		779
Total	$	6,637	$	17,802	$	49,338	$	29,458	$	21,801	$	51,669	$	—	$	295	$	177,000
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Junior Liens
Pass	$	939	$	962	$	1,740	$	1,956	$	2,686	$	2,193	$	—	$	168	$	10,644
Special Mention		—		—		154		—		—		67		—		—		221
Classified		—		—		—		—		—		—		—		—		—
Total	$	939	$	962	$	1,894	$	1,956	$	2,686	$	2,260	$	—	$	168	$	10,865
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Owner Occupied
Pass	$	11,648	$	27,703	$	50,779	$	72,617	$	26,973	$	64,284	$	1,598	$	2,989	$	258,591
Special Mention		—		2,311		700		4,270		6,165		13,859		—		—		27,305
Classified		—		—		—		—		2,925		—		—		—		2,925


Total	$	11,648	$	30,014	$	51,479	$	76,887	$	36,063	$	78,143	$	1,598	$	2,989	$	288,821
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Non-Owner Occupied & Multifamily
Pass	$	20,720	$	26,200	$	54,447	$	79,902	$	49,932	$	106,247	$	4,961	$	5,036	$	347,445
Special Mention		—		—		2,571		4,216		4,954		2,174		—		—		13,915
Classified		—		—		—		7,120		4,353		—		—		—		11,473
Total	$	20,720	$	26,200	$	57,018	$	91,238	$	59,239	$	108,421	$	4,961	$	5,036	$	372,833
Current period gross charge-offs	$	—	$	—	$	—	$	257	$	714	$	—	$	—	$	—	$	971
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	—	$	—	$	16	$	—	$	—	$	—	$	16
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	16	$	—	$	—	$	—	$	16
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	14,914	$	24,163	$	8,195	$	10,725	$	5,472	$	5,889	$	33,352	$	2,351	$	105,061
Special Mention		—		67		505		—		—		—		—		11		583
Classified		—		—		834		—		21		—		—		—		855
Total	$	14,914	$	24,230	$	9,534	$	10,725	$	5,493	$	5,889	$	33,352	$	2,362	$	106,499
Current period gross charge-offs	$	—	$	—	$	81	$	—	$	—	$	—	$	53	$	—	$	134
Marine loans
Pass	$	—	$	—	$	64,811	$	101,942	$	29,055	$	626	$	—	$	—	$	196,434
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	64,811	$	101,942	$	29,055	$	626	$	—	$	—	$	196,434
Current period gross charge-offs	$	—	$	—	$	—	$	114	$	—	$	—	$	—	$	—	$	114
Consumer loans
Pass	$	1,260	$	2,145	$	1,504	$	10,218	$	5,055	$	7,786	$	1,688	$	—	$	29,656
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		83		—		—		—		83
Total	$	1,260	$	2,145	$	1,504	$	10,218	$	5,138	$	7,786	$	1,688	$	—	$	29,739
Current period gross charge-offs	$	—	$	—	$	9	$	2	$	—	$	8	$	71	$	—	$	90
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		240		—		—		—		—		—		—		—		240
Total	$	240	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	240
Current period gross charge-offs	$	72	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	72
Other loans
Pass	$	4,250	$	—	$	47	$	8,786	$	—	$	2,223	$	66	$	—	$	15,372
Special Mention		—		—		—		—		—		—		—		—		—


Classified		—		—		—		—		—		—		—		—		—
Total	$	4,250	$	—	$	47	$	8,786	$	—	$	2,223	$	66	$	—	$	15,372
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	78,527	$	137,045	$	251,391	$	345,661	$	170,033	$	271,567	$	96,786	$	12,016	$	1,363,026
Special Mention		—		2,420		5,048		8,486		13,544		21,184		40		11		50,733
Classified		240		1,816		834		7,218		7,382		807		348		—		18,645
Total	$	78,767	$	141,281	$	257,273	$	361,365	$	190,959	$	293,558	$	97,174	$	12,027	$	1,432,404
Total current period gross charge-offs	$	72	$	—	$	90	$	373	$	714	$	8	$	154	$	—	$	1,411

Credit quality information by class at December 31, 2024 and gross charge-offs by year of origination for the year ended December 31, 2024 was as follows:


December 31, 2024
	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	33,338	$	25,777	$	13,722	$	3,830	$	4,758	$	3,908	$	3,055	$	—	$	88,388
Special Mention		—		6,781		—		—		—		—		—		—		6,781
Classified		—		—		—		—		—		31		—		—		31
Total	$	33,338	$	32,558	$	13,722	$	3,830	$	4,758	$	3,939	$	3,055	$	—	$	95,200
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	94	$	—	$	—	$	94
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	50,454	$	—	$	50,454
Special Mention		—		—		—		—		—		—		192		—		192
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	50,646	$	—	$	50,646
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	14
Residential First Lien - Investor
Pass	$	7,567	$	15,074	$	18,816	$	27,722	$	10,729	$	21,201	$	—	$	559	$	101,668
Special Mention		—		696		370		1,053		—		295		—		—		2,414
Classified		—		—		—		—		—		—		—		1,828		1,828
Total	$	7,567	$	15,770	$	19,186	$	28,775	$	10,729	$	21,496	$	—	$	2,387	$	105,910
Current period gross charge-offs	$	—	$	—	$	—	$	150	$	—	$	—	$	—	$	—	$	150
Residential First Lien - Owner Occupied
Pass	$	25,982	$	57,230	$	33,257	$	22,387	$	33,514	$	19,438	$	—	$	387	$	192,195
Special Mention		45		623		—		—		—		592		—		—		1,260
Classified		—		—		—		—		—		610		—		—		610
Total	$	26,027	$	57,853	$	33,257	$	22,387	$	33,514	$	20,640	$	—	$	387	$	194,065
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	103	$	—	$	—	$	103
Residential Junior Liens
Pass	$	991	$	2,191	$	2,484	$	2,942	$	555	$	1,762	$	—	$	175	$	11,100
Special Mention		—		—		—		—		70		—		—		—		70
Classified		—		—		—		—		—		—		—		14		14


Total	$	991	$	2,191	$	2,484	$	2,942	$	625	$	1,762	$	—	$	189	$	11,184
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	10	$	—	$	—	$	10
Commercial - Owner Occupied
Pass	$	29,892	$	32,228	$	75,213	$	36,558	$	21,827	$	45,648	$	2,623	$	2,856	$	246,845
Special Mention		—		364		3,995		5,523		—		14,770		—		—		24,652
Classified		—		—		—		739		—		—		—		—		739
Total	$	29,892	$	32,592	$	79,208	$	42,820	$	21,827	$	60,418	$	2,623	$	2,856	$	272,236
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial - Non-Owner Occupied & Multifamily
Pass	$	28,275	$	43,596	$	106,921	$	55,945	$	65,561	$	44,949	$	5,397	$	5,834	$	356,478
Special Mention		—		—		1,384		7,584		1,446		788		—		—		11,202
Classified		—		—		—		—		—		—		—		—		—
Total	$	28,275	$	43,596	$	108,305	$	63,529	$	67,007	$	45,737	$	5,397	$	5,834	$	367,680
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	—	$	28	$	—	$	—	$	—	$	—	$	28
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	28	$	—	$	—	$	—	$	—	$	28
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	28,978	$	8,605	$	17,187	$	4,512	$	3,324	$	3,614	$	37,618	$	2,064	$	105,902
Special Mention		411		1,095		—		1,915		—		3		—		86		3,510
Classified		—		903		—		—		—		—		—		—		903
Total	$	29,389	$	10,603	$	17,187	$	6,427	$	3,324	$	3,617	$	37,618	$	2,150	$	110,315
Current period gross charge-offs	$	—	$	32	$	8	$	—	$	63	$	—	$	135	$	—	$	238
Marine loans
Pass	$	—	$	68,970	$	110,481	$	30,011	$	633	$	—	$	—	$	—	$	210,095
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	68,970	$	110,481	$	30,011	$	633	$	—	$	—	$	—	$	210,095
Current period gross charge-offs	$	—	$	1,371	$	199	$	208	$	—	$	—	$	—	$	—	$	1,778


Consumer loans
Pass	$	2,700	$	1,987	$	10,787	$	5,274	$	7,221	$	1,117	$	1,834	$	13	$	30,933
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		84		—		—		—		—		84
Total	$	2,700	$	1,987	$	10,787	$	5,358	$	7,221	$	1,117	$	1,834	$	13	$	31,017
Current period gross charge-offs	$	—	$	13	$	4	$	47	$	167	$	—	$	78	$	—	$	309
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		309		—		—		—		—		—		—		—		309
Total	$	309	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	309
Current period gross charge-offs	$	141	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	141
Other loans
Pass	$	—	$	54	$	9,500	$	—	$	—	$	2,281	$	76	$	—	$	11,911
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	54	$	9,500	$	—	$	—	$	2,281	$	76	$	—	$	11,911
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	157,723	$	255,712	$	398,368	$	189,209	$	148,122	$	143,918	$	101,057	$	11,888	$	1,405,997
Special Mention		456		9,559		5,749		16,075		1,516		16,448		192		86		50,081
Classified		309		903		—		823		—		641		—		1,842		4,518
Total	$	158,488	$	266,174	$	404,117	$	206,107	$	149,638	$	161,007	$	101,249	$	13,816	$	1,460,596
Total current period gross charge-offs	$	141	$	1,416	$	211	$	405	$	230	$	214	$	227	$	—	$	2,844

Unfunded Commitments: The Company maintains a separate reserve for credit losses on unfunded commitments, which is included in Other Liabilities on the Consolidated Balance Sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the Consolidated Statement of Operations. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded, utilizing the same models and approaches for the Company's other loan portfolio segments, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that maybe drawn prior to the cancellation of the arrangement.

During the three and six months ended June 30, 2025, a reduction to the unfunded commitment reserve of $188 thousand and $101 thousand, respectively, was recorded as a credit to the provision for credit losses in the consolidated statement of operations. During the three and six months ended June 30, 2024, a reduction to the unfunded commitment reserve of $134 thousand was recorded as a credit to the provision for credit losses in the consolidated income statement. The reserve for unfunded commitments at June 30, 2025 and 2024 and December 31, 2024 was $404 thousand, $345 thousand, and $505 thousand, respectively.

Restructurings for Borrowers Experiencing Financial Difficulty: There were no loans to borrowers experiencing financial difficulty that had a payment default during the three and six months ended June 30, 2025 and 2024 and were modified in the twelve months prior to that default. Default is determined at 30 days or more past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance of credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly.