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Note 5 - Allowance for Credit Losses on Loans and Nonperforming Assets | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Financing Receivables [Text Block] | Note 5: Allowance for Credit Losses on Loans and Nonperforming Assets Please refer to Note 1: Summary of Significant Accounting Policies for information on evaluation of collectively evaluated loans and individually evaluated loans and associated reserves, and policies regarding nonaccruals, past due status and charge-offs. A detailed analysis showing the allowance roll-forward by portfolio segment for the periods indicated follows:
|  | Activity in the ACLL for the Year Ended December 31, 2024 |
|  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Unallocated |  |  | Total |
Balance, December 31, 2023 |  | $ | 408 |  |  | $ | 3,162 |  |  | $ | 3,576 |  |  | $ | 682 |  |  | $ | 333 |  |  | $ | 583 |  |  | $ | 350 |  |  | $ | 9,094 |
Charge-offs |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (166 | ) |  |  | - |  |  |  | (353 | ) |  |  | - |  |  |  | (519 | )
Recoveries |  |  | - |  |  |  | - |  |  |  | 53 |  |  |  | 79 |  |  |  | - |  |  |  | 138 |  |  |  | - |  |  |  | 270 |
Provision for (recovery of) credit losses |  |  | (70 | ) |  |  | 667 |  |  |  | 615 |  |  |  | 56 |  |  |  | 3 |  |  |  | 271 |  |  |  | (300 | ) |  |  | 1,242 |
Merger adjustment(1) |  |  | 10 |  |  |  | 97 |  |  |  | 55 |  |  |  | 4 |  |  |  | - |  |  |  | 9 |  |  |  | - |  |  |  | 175 |
Balance, December 31, 2024 |  | $ | 348 |  |  | $ | 3,926 |  |  | $ | 4,299 |  |  | $ | 655 |  |  | $ | 336 |  |  | $ | 648 |  |  | $ | 50 |  |  | $ | 10,262 |
(1) Adjustment for PCD acquired loans.
|  | Activity in the ACLL for the Year Ended December 31, 2023 |
|  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Unallocated |  |  | Total |
Balance, December 31, 2022 |  | $ | 450 |  |  | $ | 2,199 |  |  | $ | 3,642 |  |  | $ | 930 |  |  | $ | 319 |  |  | $ | 506 |  |  | $ | 179 |  |  | $ | 8,225 |
Adoption of ASU 2016-13 |  |  | (21 | ) |  |  | 1,261 |  |  |  | 700 |  |  |  | 216 |  |  |  | (15 | ) |  |  | 72 |  |  |  | 129 |  |  |  | 2,342 |
Charge-offs |  |  | - |  |  |  | (17 | ) |  |  | - |  |  |  | (214 | ) |  |  | - |  |  |  | (247 | ) |  |  | - |  |  |  | (478 | )
Recoveries |  |  | - |  |  |  | 103 |  |  |  | 45 |  |  |  | 6 |  |  |  | - |  |  |  | 129 |  |  |  | - |  |  |  | 283 |
(Recovery of) provision for credit losses |  |  | (21 | ) |  |  | (384 | ) |  |  | (811 | ) |  |  | (256 | ) |  |  | 29 |  |  |  | 123 |  |  |  | 42 |  |  |  | (1,278 | )
Balance, December 31, 2023 |  | $ | 408 |  |  | $ | 3,162 |  |  | $ | 3,576 |  |  | $ | 682 |  |  | $ | 333 |  |  | $ | 583 |  |  | $ | 350 |  |  | $ | 9,094 |
A detailed analysis showing the allowance and loan portfolio by segment and evaluation method as of the dates indicated follows:
|  | ACLL by Segment and Evaluation Method |
December 31, 2024 |  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Unallocated |  |  | Total |
Individually evaluated |  | $ | – |  |  | $ | 31 |  |  | $ | 49 |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 80 |
Collectively evaluated |  |  | 348 |  |  |  | 3,895 |  |  |  | 4,250 |  |  |  | 655 |  |  |  | 336 |  |  |  | 648 |  |  |  | 50 |  |  |  | 10,182 |
Total |  | $ | 348 |  |  | $ | 3,926 |  |  | $ | 4,299 |  |  | $ | 655 |  |  | $ | 336 |  |  | $ | 648 |  |  | $ | 50 |  |  | $ | 10,262 |
|  | Loans by Segment and Evaluation Method |
December 31, 2024 |  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Total |
Individually evaluated |  | $ | – |  |  | $ | 497 |  |  | $ | 10,024 |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 10,521 |
Collectively evaluated |  |  | 50,798 |  |  |  | 307,358 |  |  |  | 468,054 |  |  |  | 51,844 |  |  |  | 57,171 |  |  |  | 42,867 |  |  |  | 978,092 |
Total |  | $ | 50,798 |  |  | $ | 307,855 |  |  | $ | 478,078 |  |  | $ | 51,844 |  |  | $ | 57,171 |  |  | $ | 42,867 |  |  | $ | 988,613 |
|  | ACLL by Segment and Evaluation Method |
December 31, 2023 |  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Unallocated |  |  | Total |
Individually evaluated |  | $ | - |  |  | $ | 74 |  |  | $ | 367 |  |  | $ | 126 |  |  | $ | - |  |  | $ | 5 |  |  | $ | - |  |  | $ | 572 |
Collectively evaluated |  |  | 408 |  |  |  | 3,088 |  |  |  | 3,209 |  |  |  | 556 |  |  |  | 333 |  |  |  | 578 |  |  |  | 350 |  |  |  | 8,522 |
Total |  | $ | 408 |  |  | $ | 3,162 |  |  | $ | 3,576 |  |  | $ | 682 |  |  | $ | 333 |  |  | $ | 583 |  |  | $ | 350 |  |  | $ | 9,094 |
|  | Loans by Segment and Evaluation Method |
December 31, 2023 |  | Real Estate Construction |  |  | Consumer Real Estate |  |  | Commercial Real Estate |  |  | Commercial Non Real Estate |  |  | Public Sector and IDA |  |  | Consumer Non Real Estate |  |  | Total |
Individually evaluated |  | $ | 286 |  |  | $ | 1,183 |  |  | $ | 8,805 |  |  | $ | 227 |  |  | $ | - |  |  | $ | 43 |  |  | $ | 10,544 |
Collectively evaluated |  |  | 55,093 |  |  |  | 240,381 |  |  |  | 410,325 |  |  |  | 41,328 |  |  |  | 60,551 |  |  |  | 38,953 |  |  |  | 846,631 |
Total |  | $ | 55,379 |  |  | $ | 241,564 |  |  | $ | 419,130 |  |  | $ | 41,555 |  |  | $ | 60,551 |  |  | $ | 38,996 |  |  | $ | 857,175 |
A summary of ratios for the allowance for credit losses, as of the dates indicated, follows:
|  | December 31, |
|  | 2024 |  |  | 2023 |
Ratio of ACLL to the end of period loans, net of deferred fees and costs |  |  | 1.04 | % |  |  | 1.06 | %
Ratio of net charge-offs to average loans, net of deferred fees and costs |  |  | 0.03 | % |  |  | 0.02 | %
The following table presents nonaccrual loans, by class, as of the dates indicated:
|  | December 31, 2024 |  |  | December 31, 2023 |
|  | With No Allowance |  |  | With an Allowance |  |  | Total |  |  | With No Allowance |  |  | With an Allowance |  |  | Total |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner-occupied |  | $ | 2,013 |  |  | $ | 209 |  |  | $ | 2,222 |  |  | $ | 2,177 |  |  | $ | 231 |  |  | $ | 2,408 |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 221 |  |  |  | 221 |
Total |  | $ | 2,013 |  |  | $ | 209 |  |  | $ | 2,222 |  |  | $ | 2,177 |  |  | $ | 452 |  |  | $ | 2,629 |
The following tables present the aging of past due loans, by loan pool, as of the dates indicated.
December 31, 2024 |  | Accruing Current Loans |  |  | Accruing Loans 30 – 89 Days Past Due |  |  | Accruing Loans 90 or More Days Past Due |  |  | Nonaccrual Loans |  |  | Total Loans |  |  | Accruing and Nonaccrual 90 or More Days Past Due |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, 1-4 family residential |  | $ | 16,162 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 16,162 |  |  | $ | - |
Construction, other |  |  | 34,636 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 34,636 |  |  |  | - |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity line |  |  | 22,551 |  |  |  | 67 |  |  |  | - |  |  |  | - |  |  |  | 22,618 |  |  |  | - |
Residential closed-end first liens |  |  | 170,110 |  |  |  | 949 |  |  |  | 323 |  |  |  | - |  |  |  | 171,382 |  |  |  | 323 |
Residential closed-end junior liens |  |  | 8,565 |  |  |  | 9 |  |  |  | - |  |  |  | - |  |  |  | 8,574 |  |  |  | - |
Investor-owned residential real estate |  |  | 104,756 |  |  |  | 347 |  |  |  | 178 |  |  |  | - |  |  |  | 105,281 |  |  |  | 178 |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily residential real estate |  |  | 143,444 |  |  |  | 186 |  |  |  | - |  |  |  | - |  |  |  | 143,630 |  |  |  | - |
Commercial real estate owner-occupied |  |  | 138,284 |  |  |  | 147 |  |  |  | - |  |  |  | 2,222 |  |  |  | 140,653 |  |  |  | 209 |
Commercial real estate, other |  |  | 193,249 |  |  |  | 546 |  |  |  | - |  |  |  | - |  |  |  | 193,795 |  |  |  | - |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 51,547 |  |  |  | 253 |  |  |  | 44 |  |  |  | - |  |  |  | 51,844 |  |  |  | 44 |
Public Sector and IDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  |  | 57,171 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 57,171 |  |  |  | - |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 4,696 |  |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | 4,698 |  |  |  | - |
Automobile |  |  | 12,802 |  |  |  | 193 |  |  |  | - |  |  |  | - |  |  |  | 12,995 |  |  |  | - |
Other consumer loans |  |  | 24,921 |  |  |  | 250 |  |  |  | 3 |  |  |  | - |  |  |  | 25,174 |  |  |  | 3 |
Total |  | $ | 982,894 |  |  | $ | 2,949 |  |  | $ | 548 |  |  | $ | 2,222 |  |  | $ | 988,613 |  |  | $ | 757 |
December 31, 2023 |  | Accruing Current Loans |  |  | Accruing Loans 30 – 89 Days Past Due |  |  | Accruing Loans 90 or More Days Past Due |  |  | Nonaccrual Loans |  |  | Total Loans |  |  | Accruing and Nonaccrual 90 or More Days Past Due |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, 1-4 family residential |  | $ | 13,442 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 13,442 |  |  | $ | - |
Construction, other |  |  | 41,916 |  |  |  | 21 |  |  |  | - |  |  |  | - |  |  |  | 41,937 |  |  |  | - |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity line |  |  | 17,178 |  |  |  | 104 |  |  |  | - |  |  |  | - |  |  |  | 17,282 |  |  |  | - |
Residential closed-end first liens |  |  | 124,886 |  |  |  | 662 |  |  |  | 131 |  |  |  | - |  |  |  | 125,679 |  |  |  | 131 |
Residential closed-end junior liens |  |  | 5,027 |  |  |  | 12 |  |  |  | - |  |  |  | - |  |  |  | 5,039 |  |  |  | - |
Investor-owned residential real estate |  |  | 93,564 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 93,564 |  |  |  | - |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily residential real estate |  |  | 119,052 |  |  |  | 195 |  |  |  | - |  |  |  | - |  |  |  | 119,247 |  |  |  | - |
Commercial real estate owner-occupied |  |  | 114,477 |  |  |  | 336 |  |  |  | - |  |  |  | 2,408 |  |  |  | 117,221 |  |  |  | 231 |
Commercial real estate, other |  |  | 182,662 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 182,662 |  |  |  | - |
Commercial Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 41,249 |  |  |  | 57 |  |  |  | 28 |  |  |  | 221 |  |  |  | 41,555 |  |  |  | 28 |
Public Sector and IDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  |  | 60,551 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 60,551 |  |  |  | - |
Consumer Non Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 4,648 |  |  |  | 17 |  |  |  | 3 |  |  |  | - |  |  |  | 4,668 |  |  |  | 3 |
Automobile |  |  | 12,126 |  |  |  | 135 |  |  |  | - |  |  |  | - |  |  |  | 12,261 |  |  |  | - |
Other consumer loans |  |  | 21,934 |  |  |  | 107 |  |  |  | 26 |  |  |  | - |  |  |  | 22,067 |  |  |  | 26 |
Total |  | $ | 852,712 |  |  | $ | 1,646 |  |  | $ | 188 |  |  | $ | 2,629 |  |  | $ | 857,175 |  |  | $ | 419 |
Collateral Dependent Loans Loans are collateral dependent when repayment is expected substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans are individually evaluated. The Company measures the ACL on collateral dependent loans based upon the fair value of the collateral, as permitted by ASU 2016-13. Fair value of the collateral is adjusted for liquidation costs/discounts. If the fair value of the collateral falls below the amortized cost of the loan, the shortfall is recognized in the ACLL. If the fair value of the collateral exceeds the amortized cost, no ACL is required. As of December 31, 2024, three of the Company’s individually evaluated loans were considered collateral dependent, and all are secured by real estate. The following table provides details on collateral dependent loans as of the dates indicated:
|  | December 31, 2024 |  |  | December 31, 2023 |
|  | Balance |  |  | Related Allowance |  |  | Balance |  |  | Related Allowance |
Consumer Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Residential closed-end first lien |  | $ | - |  |  | $ | - |  |  | $ | 7 |  |  | $ | - |
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | 8,387 |  |  |  | - |  |  |  | 2,177 |  |  |  | - |
Commercial real estate, other |  |  | 872 |  |  |  | - |  |  |  | - |  |  |  | - |
Total Loans |  | $ | 9,259 |  |  | $ | - |  |  | $ | 2,184 |  |  | $ | - |
Credit Quality The Company categorizes loans by risk based on relevant information about the ability of borrowers to service their debt, including: collateral and financial information, historical payment experience, credit documentation and current economic trends, among other factors. At origination, each loan is assigned a risk rating. Ongoing analysis of the loan portfolio adjusts risk ratings on an individual loan basis to reflect updated information. General descriptions of risk ratings are as follows: • Pass: loans with acceptable credit quality are rated pass. • Special mention: loans with potential weaknesses due to challenging economic or financial conditions are rated special mention. • Classified: loans with well-defined weaknesses that heighten the risk of default are rated classified. The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of the date indicated.
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  | Revolving Loans Converted |  |  |
December 31, 2024 |  | Prior |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | Revolving |  | to Term |  | Total |
Construction, residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | - |  | $ | - |  | $ | 0 |  | $ | 337 |  | $ | 2,312 |  | $ | 3,328 |  | $ | 10,185 |  | $ | - |  | $ | 16,162 |
Construction, other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 2,938 |  | $ | 1,138 |  | $ | 805 |  | $ | 10,795 |  | $ | 8,669 |  | $ | 6,194 |  | $ | 4,097 |  | $ | - |  | $ | 34,636 |
Equity lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 363 |  | $ | 249 |  | $ | 387 |  | $ | 470 |  | $ | 816 |  | $ | 402 |  | $ | 19,894 |  | $ | 12 |  | $ | 22,593 |
Classified |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 25 |  |  | - |  |  | 25 |
Total |  | $ | 363 |  | $ | 249 |  | $ | 387 |  | $ | 470 |  | $ | 816 |  | $ | 402 |  | $ | 19,919 |  | $ | 12 |  | $ | 22,618 |
Residential closed-end first liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 42,211 |  | $ | 18,111 |  | $ | 33,630 |  | $ | 35,557 |  | $ | 21,593 |  | $ | 18,991 |  | $ | - |  | $ | 303 |  | $ | 170,396 |
Special Mention |  |  | 367 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 367 |
Classified |  |  | 441 |  |  | - |  |  | - |  |  | 178 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 619 |
Total |  | $ | 43,019 |  | $ | 18,111 |  | $ | 33,630 |  | $ | 35,735 |  | $ | 21,593 |  | $ | 18,991 |  | $ | - |  | $ | 303 |  | $ | 171,382 |
Residential closed-end junior liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,596 |  | $ | - |  | $ | 277 |  | $ | 2,048 |  | $ | 1,597 |  | $ | 3,004 |  | $ | 31 |  | $ | 21 |  | $ | 8,574 |
Investor-owned residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 28,919 |  | $ | 22,946 |  | $ | 19,280 |  | $ | 16,242 |  | $ | 8,175 |  | $ | 3,266 |  | $ | 1,907 |  | $ | 3,668 |  | $ | 104,403 |
Special Mention |  |  | - |  |  | - |  |  | - |  |  | 138 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 138 |
Classified |  |  | 740 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 740 |
Total |  | $ | 29,659 |  | $ | 22,946 |  | $ | 19,280 |  | $ | 16,380 |  | $ | 8,175 |  | $ | 3,266 |  | $ | 1,907 |  | $ | 3,668 |  | $ | 105,281 |
Multifamily residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 39,665 |  | $ | 2,055 |  | $ | 39,879 |  | $ | 40,198 |  | $ | 8,470 |  | $ | 13,205 |  | $ | 158 |  | $ | - |  | $ | 143,630 |
Commercial real estate, owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 52,916 |  | $ | 24,539 |  | $ | 7,432 |  | $ | 28,753 |  | $ | 10,351 |  | $ | 3,810 |  | $ | 3,422 |  | $ | 83 |  | $ | 131,306 |
Special mention |  |  | 6,375 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 6,375 |
Classified |  |  | 2,222 |  |  | 738 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 12 |  |  | - |  |  | 2,972 |
Total |  | $ | 61,513 |  | $ | 25,277 |  | $ | 7,432 |  | $ | 28,753 |  | $ | 10,351 |  | $ | 3,810 |  | $ | 3,434 |  | $ | 83 |  | $ | 140,653 |
Commercial real estate, other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 90,358 |  | $ | 17,919 |  | $ | 36,777 |  | $ | 23,775 |  | $ | 16,990 |  | $ | 5,583 |  | $ | 1,703 |  | $ | - |  | $ | 193,105 |
Classified |  |  | 690 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 690 |
Total |  | $ | 91,048 |  | $ | 17,919 |  | $ | 36,777 |  | $ | 23,775 |  | $ | 16,990 |  | $ | 5,583 |  | $ | 1,703 |  | $ | - |  | $ | 193,795 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 6,437 |  | $ | 2,070 |  | $ | 11,849 |  | $ | 5,528 |  | $ | 5,903 |  | $ | 8,407 |  | $ | 11,644 |  | $ | - |  | $ | 51,838 |
Classified |  |  | - |  |  | - |  |  | - |  |  | 6 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 6 |
Total |  | $ | 6,437 |  | $ | 2,070 |  | $ | 11,849 |  | $ | 5,534 |  | $ | 5,903 |  | $ | 8,407 |  | $ | 11,644 |  | $ | - |  | $ | 51,844 |
YTD gross charge-offs |  | $ | 125 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 22 |  | $ | 19 |  | $ | - |  | $ | 166 |
Public sector and IDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 19,309 |  | $ | 218 |  | $ | 25,232 |  | $ | 5,922 |  | $ | 6,490 |  | $ | - |  | $ | - |  | $ | - |  | $ | 57,171 |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 4,698 |  | $ | - |  | $ | 4,698 |
YTD gross charge-offs |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 53 |  | $ | - |  | $ | 53 |
Automobile |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 36 |  | $ | 243 |  | $ | 727 |  | $ | 1,640 |  | $ | 4,474 |  | $ | 5,832 |  | $ | - |  | $ | - |  | $ | 12,952 |
Special Mention |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 4 |  |  | - |  |  | - |  |  | - |  |  | 4 |
Classified |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 28 |  |  | 11 |  |  | - |  |  | - |  |  | 39 |
Total |  | $ | 36 |  | $ | 243 |  | $ | 727 |  | $ | 1,640 |  | $ | 4,506 |  | $ | 5,843 |  | $ | - |  | $ | - |  | $ | 12,995 |
YTD gross charge-offs |  | $ | - |  | $ | - |  | $ | 6 |  | $ | 14 |  | $ | 16 |  | $ | 11 |  | $ | - |  | $ | - |  | $ | 47 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 184 |  | $ | 401 |  | $ | 874 |  | $ | 2,274 |  | $ | 4,804 |  | $ | 15,846 |  | $ | 760 |  | $ | - |  | $ | 25,143 |
Special Mention |  |  | - |  |  | - |  |  | 1 |  |  | - |  |  | - |  |  | 9 |  |  | - |  |  | - |  |  | 10 |
Classified |  |  | - |  |  | - |  |  | - |  |  | 2 |  |  | 14 |  |  | 5 |  |  | - |  |  | - |  |  | 21 |
Total |  | $ | 184 |  | $ | 401 |  | $ | 875 |  | $ | 2,276 |  | $ | 4,818 |  | $ | 15,860 |  | $ | 760 |  | $ | - |  | $ | 25,174 |
YTD gross charge-offs |  | $ | - |  | $ | 4 |  | $ | 15 |  | $ | 19 |  | $ | 94 |  | $ | 121 |  | $ | - |  | $ | - |  | $ | 253 |
Total Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 284,932 |  | $ | 89,889 |  | $ | 177,149 |  | $ | 173,539 |  | $ | 100,644 |  | $ | 87,868 |  | $ | 58,499 |  | $ | 4,087 |  | $ | 976,607 |
Special Mention |  |  | 6,742 |  |  | - |  |  | 1 |  |  | 138 |  |  | 4 |  |  | 9 |  |  | - |  |  | - |  |  | 6,894 |
Classified |  |  | 4,093 |  |  | 738 |  |  | - |  |  | 186 |  |  | 42 |  |  | 16 |  |  | 37 |  |  | - |  |  | 5,112 |
Total |  | $ | 295,767 |  | $ | 90,627 |  | $ | 177,150 |  | $ | 173,863 |  | $ | 100,690 |  | $ | 87,893 |  | $ | 58,536 |  | $ | 4,087 |  | $ | 988,613 |
YTD gross charge-offs |  | $ | 125 |  | $ | 4 |  | $ | 21 |  | $ | 33 |  | $ | 110 |  | $ | 154 |  | $ | 72 |  | $ | - |  | $ | 519 |
The following table presents the recorded investment of collectively evaluated loans by loan pool and credit quality as of the date indicated.
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  | Revolving Loans Converted |  |  |
December 31, 2023 |  | Prior |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | Revolving |  | to Term |  | Total |
Construction, residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | - |  | $ | - |  | $ | 246 |  | $ | 158 |  | $ | 3,275 |  | $ | 5,157 |  | $ | 4,606 |  | $ | - |  | $ | 13,442 |
Construction, other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 2,741 |  | $ | 1,094 |  | $ | 1,305 |  | $ | 12,671 |  | $ | 17,397 |  | $ | 4,884 |  | $ | 1,559 |  | $ | - |  | $ | 41,651 |
Classified |  |  | - |  |  | - |  |  | - |  |  | 286 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 286 |
Total |  | $ | 2,741 |  | $ | 1,094 |  | $ | 1,305 |  | $ | 12,957 |  | $ | 17,397 |  | $ | 4,884 |  | $ | 1,559 |  | $ | - |  | $ | 41,937 |
Equity lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 51 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 17,182 |  | $ | - |  | $ | 17,233 |
Classified |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 49 |  |  | - |  |  | 49 |
Total |  | $ | 51 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 17,231 |  | $ | - |  | $ | 17,282 |
Residential closed-end first liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 32,404 |  | $ | 5,806 |  | $ | 14,634 |  | $ | 31,414 |  | $ | 29,787 |  | $ | 11,208 |  | $ | - |  | $ | - |  | $ | 125,253 |
Classified |  |  | 426 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 426 |
Total |  | $ | 32,830 |  | $ | 5,806 |  | $ | 14,634 |  | $ | 31,414 |  | $ | 29,787 |  | $ | 11,208 |  | $ | - |  | $ | - |  | $ | 125,679 |
YTD gross charge-offs |  | $ | - |  | $ | - |  | $ | 17 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 17 |
Residential closed-end junior liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,499 |  | $ | 116 |  | $ | - |  | $ | 172 |  | $ | 1,387 |  | $ | 1,850 |  | $ | - |  | $ | 15 |  | $ | 5,039 |
Investor-owned residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 24,556 |  | $ | 5,162 |  | $ | 23,649 |  | $ | 19,062 |  | $ | 14,166 |  | $ | 4,880 |  | $ | 1,283 |  | $ | 98 |  | $ | 92,856 |
Classified |  |  | 708 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 708 |
Total |  | $ | 25,264 |  | $ | 5,162 |  | $ | 23,649 |  | $ | 19,062 |  | $ | 14,166 |  | $ | 4,880 |  | $ | 1,283 |  | $ | 98 |  | $ | 93,564 |
Multifamily residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 40,092 |  | $ | 1,806 |  | $ | 2,148 |  | $ | 40,544 |  | $ | 25,681 |  | $ | 8,850 |  | $ | 126 |  | $ | - |  | $ | 119,247 |
Commercial real estate, owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 41,573 |  | $ | 11,091 |  | $ | 23,407 |  | $ | 4,792 |  | $ | 16,720 |  | $ | 7,914 |  | $ | 2,919 |  | $ | - |  | $ | 108,416 |
Special mention |  |  | 6,396 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 6,396 |
Classified |  |  | 2,409 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,409 |
Total |  | $ | 50,378 |  | $ | 11,091 |  | $ | 23,407 |  | $ | 4,792 |  | $ | 16,720 |  | $ | 7,914 |  | $ | 2,919 |  | $ | - |  | $ | 117,221 |
Commercial real estate, other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 68,889 |  | $ | 21,841 |  | $ | 19,098 |  | $ | 36,157 |  | $ | 22,697 |  | $ | 13,279 |  | $ | 701 |  | $ | - |  | $ | 182,662 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 6,004 |  | $ | 438 |  | $ | 1,060 |  | $ | 12,667 |  | $ | 6,954 |  | $ | 6,938 |  | $ | 7,267 |  | $ | - |  | $ | 41,328 |
Classified |  |  | 220 |  |  | - |  |  | - |  |  | - |  |  | 7 |  |  | - |  |  | - |  |  | - |  |  | 227 |
Total |  | $ | 6,224 |  | $ | 438 |  | $ | 1,060 |  | $ | 12,667 |  | $ | 6,961 |  | $ | 6,938 |  | $ | 7,267 |  | $ | - |  | $ | 41,555 |
YTD gross charge-offs |  | $ | - |  | $ | 12 |  | $ | - |  | $ | - |  | $ | - |  | $ | 12 |  | $ | 190 |  | $ | - |  | $ | 214 |
Public sector and IDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 20,817 |  | $ | - |  | $ | 235 |  | $ | 26,702 |  | $ | 6,335 |  | $ | 6,462 |  | $ | - |  | $ | - |  | $ | 60,551 |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 4,668 |  | $ | - |  | $ | 4,668 |
YTD gross charge-offs |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 39 |  | $ | - |  | $ | 39 |
Automobile |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 78 |  | $ | 204 |  | $ | 563 |  | $ | 1,619 |  | $ | 2,750 |  | $ | 7,047 |  | $ | - |  | $ | - |  | $ | 12,261 |
YTD gross charge-offs |  | $ | - |  | $ | 3 |  | $ | - |  | $ | 1 |  | $ | 38 |  | $ | - |  | $ | - |  | $ | - |  | $ | 42 |
Other Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 93 |  | $ | 334 |  | $ | 811 |  | $ | 1,943 |  | $ | 5,815 |  | $ | 12,356 |  | $ | 672 |  | $ | - |  | $ | 22,024 |
Special mention |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 17 |  |  | - |  |  | - |  |  | 17 |
Classified |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 11 |  |  | 15 |  |  | - |  |  | - |  |  | 26 |
Total |  | $ | 93 |  | $ | 334 |  | $ | 811 |  | $ | 1,943 |  | $ | 5,826 |  | $ | 12,388 |  | $ | 672 |  | $ | - |  | $ | 22,067 |
YTD gross charge-offs |  | $ | - |  | $ | - |  | $ | - |  | $ | 19 |  | $ | 52 |  | $ | 95 |  | $ | - |  | $ | - |  | $ | 166 |
Total Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 238,797 |  | $ | 47,892 |  | $ | 87,156 |  | $ | 187,901 |  | $ | 152,964 |  | $ | 90,825 |  | $ | 40,983 |  | $ | 113 |  | $ | 846,631 |
Special mention |  |  | 6,396 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 17 |  |  | - |  |  | - |  |  | 6,413 |
Classified |  |  | 3,763 |  |  | - |  |  | - |  |  | 286 |  |  | 18 |  |  | 15 |  |  | 49 |  |  | - |  |  | 4,131 |
Total |  | $ | 248,956 |  | $ | 47,892 |  | $ | 87,156 |  | $ | 188,187 |  | $ | 152,982 |  | $ | 90,857 |  | $ | 41,032 |  | $ | 113 |  | $ | 857,175 |
YTD gross charge-offs |  | $ | - |  | $ | 15 |  | $ | 17 |  | $ | 20 |  | $ | 90 |  | $ | 107 |  | $ | 229 |  | $ | - |  | $ | 478 |
Loan Modifications to Borrowers Experiencing Financial Difficulty The Company modifies loans for a variety of reasons. At the date of modification, the Company assesses whether the borrower is experiencing financial difficulty. If the borrower is experiencing financial difficulty, the loan’s risk rating is evaluated and adjusted to special mention or classified, as determined appropriate. If the loan exceeds $400, if it is placed in nonaccrual, or if foreclosure is probable, the loan is individually evaluated for the ACLL. The Company modified one loan to a borrower experiencing financial difficulty during the year ended December 31, 2024. The following table presents information on the modification.
December 31, 2024 |  | Amortized Cost Basis |  |  | % of Class |  |  | Type of Modification |  | Financial Effect
Commercial Real Estate |  |  |  |  |  |  |  |  |  |
Commercial real estate owner-occupied |  | $ | 6,396 |  |  |  | 4.48 | % |  | Interest only payments |  | 3 months of interest only payments, following which the balance will be re-amortizd to contractual maturity
The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty. As of December 31, 2024, the loan was in current status, risk rated special mention and individually evaluated using the fair value of collateral method, resulting in no specific reserve. The Company modified one loan to a borrower experiencing financial difficulty during the year ended December 31, 2023. The following table presents information on the modification.
December 31, 2023 |  | Amortized Cost Basis |  |  | % of Class |  |  | Type of Modification |  | Financial Effect
Commercial Real Estate |  |  |  |  |  |  |  |  |  |
Commercial real estate owner-occupied |  | $ | 6,396 |  |  |  | 5.46 | % |  | Interest only payments |  | 6 months of interest only payments, after which remaining balance will be re-amortized to the contractual maturity date.
As of December 31, 2023, the loan was in current status, was rated special mention and individually evaluated using the discounted cash flow method, resulting in a specific reserve of $347. The Company analyzed its modified loan portfolio for loans that defaulted during the 12 month period ended December 31, 2024, and that were modified within 12 months prior. The Company designates three circumstances that indicate default: one or more payments that occur more than 90 days past the due date, charge-off, or foreclosure after the date of modification. There were no loans to borrowers experiencing financial difficulty that defaulted during the year ended December 31, 2024 or December 31, 2023 and were modified in the twelve months prior. ACL on Unfunded Commitments The following table presents information on the ACL for unfunded commitments for the years ended December 31, 2024 and December 31, 2023:
Allowance for Credit Losses on Unfunded Commitments |
Balance, December 31, 2022 |  | $ | 35 |
Adoption of ASU 2016-13 |  |  | 207 |
Provision for credit losses |  | $ | 17 |
Balance, December 31, 2023 |  | $ | 259 |
Recovery of credit losses |  |  | (15 | )
FCB acquisition |  |  | 7 |
Balance, December 31, 2024 |  | $ | 251 |

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