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Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

Loans and Allowance for Credit Losses [Abstract]

Note C - Loans and Allowance for Credit Losses

Loans are comprised of the following at December 31:

	2024			2023
Residential real estate	$	373,534		$	319,504
Commercial real estate:
Owner-occupied		86,471			82,356
Nonowner-occupied		206,847			178,201
Construction		79,669			62,337
Commercial and industrial		158,440			157,298
Consumer:
Automobile		50,246			61,461
Home equity		42,473			35,893
Other		64,145			74,850
		1,061,825			971,900
Less: Allowance for credit losses		(10,088	)		(8,767	)

Loans, net	$	1,051,737		$	963,133

At December 31, 2024 and 2023, net deferred loan origination costs were $363 and $794, respectively. At December 31, 2024 and 2023, net unamortized loan purchase premiums were $398 and $687, respectively.

The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of December 31, 2024 and 2023:

December 31, 2024	Loans Past Due 90 Days And Still Accruing		Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Total Nonaccrual Loans

Residential real estate	$	49	$	—	$	1,931	$	1,931
Commercial real estate:
Owner-occupied		—		680		136		816
Nonowner-occupied		—		—		158		158
Construction		—		—		—		—
Commercial and industrial		—		962		90		1,052
Consumer:
Automobile		39		—		379		379
Home equity		—		26		338		364
Other		28		—		117		117
Total	$	116	$	1,668	$	3,149	$	4,817

December 31, 2023	Loans Past Due 90 Days And Still Accruing		Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Total Nonaccrual Loans

Residential real estate	$	9	$	—	$	1,234	$	1,234
Commercial real estate:
Owner-occupied		—		775		—		775
Nonowner-occupied		—		—		61		61
Construction		—		—		1		1
Commercial and industrial		—		—		48		48
Consumer:
Automobile		56		—		78		78
Home equity		—		—		95		95
Other		54		—		100		100
Total	$	119	$	775	$	1,617	$	2,392

The Company recognized $97 and $146 of interest income in nonaccrual loans during the years ended December 31, 2024 and 2023, respectively.

The following table presents the aging of the recorded investment of past due loans by class of loans as of December 31, 2024 and 2023:

December 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Loans Not Past Due		Total
Residential real estate	$	3,294	$	1,097	$	984	$	5,375	$	368,159	$	373,534
Commercial real estate:
Owner-occupied		773		—		816		1,589		84,882		86,471
Nonowner-occupied		2,294		—		—		2,294		204,553		206,847
Construction		—		—		—		—		79,669		79,669
Commercial and industrial		533		58		745		1,336		157,104		158,440
Consumer:
Automobile		791		414		349		1,554		48,692		50,246
Home equity		402		141		243		786		41,687		42,473
Other		716		260		98		1,074		63,071		64,145

Total	$	8,803	$	1,970	$	3,235	$	14,008	$	1,047,817	$	1,061,825

December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Loans Not Past Due		Total
Residential real estate	$	2,705	$	368	$	481	$	3,554	$	315,950	$	319,504
Commercial real estate:
Owner-occupied		2,580		—		775		3,355		79,001		82,356
Nonowner-occupied		681		—		—		681		177,520		178,201
Construction		—		—		—		—		62,337		62,337
Commercial and industrial		3,338		—		48		3,386		153,912		157,298
Consumer:
Automobile		782		210		117		1,109		60,352		61,461
Home equity		353		62		95		510		35,383		35,893
Other		658		121		148		927		73,923		74,850

Total	$	11,097	$	761	$	1,664	$	13,522	$	958,378	$	971,900

Credit Quality Indicators:

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. These risk categories are represented by a loan grading scale from 1 through 11. The Company analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and “classified” assets. The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be loans that are graded 9 through 11. The Company’s risk categories are reviewed at least annually on loans that have aggregate borrowing amounts that meet or exceed $1,000.

The Company uses the following definitions for its criticized loan risk ratings:

Special Mention. Loans classified as “special mention” are graded 8 and indicate considerable risk due to deterioration of repayment (in the earliest stages) due to potential weak primary repayment source, or payment delinquency. These loans will be under constant supervision, are not classified and do not expose the institution to sufficient risks to warrant classification. These deficiencies should be correctable within the normal course of business, although significant changes in company structure or policy may be necessary to correct the deficiencies. These loans are considered bankable assets with no apparent loss of principal or interest envisioned. The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted.

The Company uses the following definitions for its classified loan risk ratings:

Substandard. Loans classified as “substandard” are graded 9 and represent very high risk, serious delinquency, nonaccrual, or unacceptable credit. Repayment through the primary source of repayment is in jeopardy due to the existence of one or more well-defined weaknesses, and the collateral pledged may inadequately protect collection of the loans. Loss of principal is not likely if weaknesses are corrected, although financial statements normally reveal significant weakness. Loans are still considered collectible, although loss of principal is more likely than with special mention loans. Collateral liquidation is considered likely to satisfy debt.

Doubtful. Loans classified as “doubtful” are graded 10 and display a high probability of loss, although the amount of actual loss at the time of classification is undetermined. This classification should be temporary until such time that actual loss can be identified, or improvements are made to reduce the seriousness of the classification. These loans exhibit all substandard characteristics with the addition that weaknesses make collection or liquidation in full highly questionable and improbable. This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value. Loss is deferred until certain important and reasonable specific pending factors that may strengthen the credit can be more accurately determined. These factors may include proposed acquisitions, liquidation procedures, capital injection, receipt of additional collateral, mergers, or refinancing plans. A doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded substandard.

Loss. Loans classified as “loss” are graded 11 and are considered uncollectible and are of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the credit has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset yielding such a minimum value even though partial recovery may be affected in the future. Amounts classified as loss should be promptly charged off.

As of December 31, 2024 and 2023, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial real estate:
Owner-occupied
Risk Rating
Pass	$	13,762	$	17,199	$	7,441	$	10,094	$	4,787	$	16,336	$	583	$	70,202
Special Mention		—		—		—		12,896		—		1,415		299		14,610
Substandard		79		—		—		—		136		844		600		1,659
Doubtful		—		—		—		—		—		—		—		—
Total	$	13,841	$	17,199	$	7,441	$	22,990	$	4,923	$	18,595	$	1,482	$	86,471

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial real estate:
Nonowner-occupied
Risk Rating
Pass	$	35,216	$	11,377	$	30,773	$	31,465	$	19,351	$	66,312	$	6,172	$	200,666
Special Mention		—		1,636		—		—		—		—		—		1,636
Substandard		220		—		996		—		3,329		—		—		4,545
Doubtful		—		—		—		—		—		—		—		—
Total	$	35,436	$	13,013	$	31,769	$	31,465	$	22,680	$	66,312	$	6,172	$	206,847

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial real estate:
Construction
Risk Rating
Pass	$	13,865	$	33,162	$	27,678	$	1,111	$	266	$	2,647	$	93	$	78,822
Special Mention		—		—		—		—		—		38		—		38
Substandard		—		638		—		—		—		171		—		809
Doubtful		—		—		—		—		—		—		—		—
Total	$	13,865	$	33,800	$	27,678	$	1,111	$	266	$	2,856	$	93	$	79,669

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial and Industrial:
Risk Rating
Pass	$	17,260	$	7,875	$	24,843	$	25,894	$	20,648	$	25,593	$	21,785	$	143,898
Special Mention		446		—		—		—		—		178		6,476		7,100
Substandard		2,039		226		60		480		205		—		4,432		7,442
Doubtful		—		—		—		—		—		—		—		—
Total	$	19,745	$	8,101	$	24,903	$	26,374	$	20,853	$	25,771	$	32,693	$	158,440

Current Period gross charge-offs	$	219	$	—	$	—	$	1	$	—	$	—	$	1	$	221

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial real estate:
Owner-occupied
Risk Rating
Pass	$	18,120	$	7,911	$	10,679	$	5,973	$	6,125	$	15,925	$	459	$	65,192
Special Mention		—		—		—		—		—		427		—		427
Substandard		—		—		13,934		—		498		2,005		300		16,737
Doubtful		—		—		—		—		—		—		—		—
Total	$	18,120	$	7,911	$	24,613	$	5,973	$	6,623	$	18,357	$	759	$	82,356

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial real estate:
Nonowner occupied
Risk Rating
Pass	$	12,688	$	29,344	$	32,235	$	20,484	$	15,415	$	61,809	$	1,128	$	173,103
Special Mention		—		—		768		3,226		—		1,034		—		5,028
Substandard		—		—		70		—		—		—		—		70
Doubtful		—		—		—		—		—		—		—		—
Total	$	12,688	$	29,344	$	33,073	$	23,710	$	15,415	$	62,843	$	1,128	$	178,201

Current Period gross charge-offs	$	—	$	—	$	132	$	—	$	—	$	—	$	—	$	132

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial real estate:
Construction
Risk Rating
Pass	$	28,055	$	29,174	$	1,231	$	302	$	392	$	2,937	$	—	$	62,091
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		246		—		246
Doubtful		—		—		—		—		—		—		—		—
Total	$	28,055	$	29,174	$	1,231	$	302	$	392	$	3,183	$	—	$	62,337

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Commercial and Industrial
Risk Rating
Pass	$	8,770	$	30,885	$	26,806	$	31,247	$	344	$	27,632	$	27,510	$	153,194
Special Mention		140		—		—		—		—		8		66		214
Substandard		—		—		58		1,363		4		182		2,283		3,890
Doubtful		—		—		—		—		—		—		—		—
Total	$	8,910	$	30,885	$	26,864	$	32,610	$	348	$	27,822	$	29,859	$	157,298

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	29	$	29

The Company considers the performance of the loan portfolio and its impact on the ACL. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of December 31, 2024 and 2023:

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Residential Real Estate:
Payment Performance
Performing	$	57,385	$	57,546	$	40,026	$	46,067	$	38,969	$	98,084	$	33,477	$	371,554
Nonperforming		—		234		435		83		54		1,174		—		1,980
Total	$	57,385	$	57,780	$	40,461	$	46,150	$	39,023	$	99,258	$	33,477	$	373,534

Current Period gross charge-offs	$	—	$	—	$	15	$	—	$	—	$	27	$	—	$	42

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Consumer:
Automobile
Payment Performance
Performing	$	13,643	$	18,133	$	12,693	$	3,686	$	1,268	$	405	$	—	$	49,828
Nonperforming		145		162		77		12		5		17		—		418
Total	$	13,788	$	18,295	$	12,770	$	3,698	$	1,273	$	422	$	—	$	50,246

Current Period gross charge-offs	$	91	$	364	$	232	$	34	$	22	$	7	$	—	$	750

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Consumer:
Home Equity:
Payment Performance
Performing	$	317	$	—	$	61	$	152	$	—	$	—	$	41,579	$	42,109
Nonperforming		—		—		—		—		—		—		364		364
Total	$	317	$	—	$	61	$	152	$	—	$	—	$	41,943	$	42,473

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total

Consumer:
Other
Payment Performance
Performing	$	13,110	$	18,442	$	8,768	$	6,580	$	2,367	$	973	$	13,760	$	64,000
Nonperforming		3		50		14		46		25		7		—		145
Total	$	13,113	$	18,492	$	8,782	$	6,626	$	2,392	$	980	$	13,760	$	64,145

Current Period gross charge-offs	$	443	$	192	$	156	$	107	$	52	$	29	$	495	$	1,474

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Residential Real Estate:
Payment Performance
Performing	$	50,484	$	44,640	$	50,949	$	44,818	$	21,854	$	91,956	$	13,560	$	318,261
Nonperforming		—		—		—		—		182		1,061		—		1,243
Total	$	50,484	$	44,640	$	50,949	$	44,818	$	22,036	$	93,017	$	13,560	$	319,504

Current Period gross charge-offs	$	—	$	—	$	3	$	—	$	—	$	118	$	—	$	121

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Consumer:
Automobile
Payment Performance
Performing	$	28,939	$	20,376	$	7,013	$	3,028	$	1,212	$	759	$	—	$	61,327
Nonperforming		34		60		15		1		9		15		—		134
Total	$	28,973	$	20,436	$	7,028	$	3,029	$	1,221	$	774	$	—	$	61,461

Current Period gross charge-offs	$	51	$	163	$	116	$	6	$	29	$	3	$	—	$	368

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Consumer:
Home Equity
Payment Performance
Performing	$	1,649	$	79	$	—	$	—	$	—	$	—	$	34,070	$	35,798
Nonperforming		—		—		—		—		—		—		95		95
Total	$	1,649	$	79	$	—	$	—	$	—	$	—	$	34,165	$	35,893

Current Period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	87	$	87

	Term Loans Amortized Cost Basis by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total

Consumer:
Other
Payment Performance
Performing	$	18,377	$	24,904	$	10,800	$	4,482	$	1,093	$	953	$	14,087	$	74,696
Nonperforming		11		17		67		53		1		4		1		154
Total	$	18,388	$	24,921	$	10,867	$	4,535	$	1,094	$	957	$	14,088	$	74,850

Current Period gross charge-offs	$	306	$	119	$	119	$	84	$	28	$	53	$	246	$	955

The Company originates residential, consumer, and commercial loans to customers located primarily in the southeastern areas of Ohio as well as the western counties of West Virginia. Approximately 4.16% of total loans were unsecured at December 31, 2024, down from 4.37% at December 31, 2023.

Modifications to Borrowers Experiencing Financial Difficulty:

Occasionally, the Company modifies loans to borrowers experiencing financial difficulty. These modifications may include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction in the contractual principal and interest payments of the loan; or short-term interest-only payment terms. All modifications to borrowers experiencing financial difficulty are considered to be impaired.

During the years ended December 31, 2024 and 2023, the Company experienced no new modifications to borrowers experiencing financial difficulty.

The following table presents the activity in the ACL by portfolio segment for the years ended December 31, 2024 and 2023:

December 31, 2024	Residential Real Estate			Commercial Real Estate		Commercial & Industrial			Consumer			Total
Allowance for credit losses:
Beginning balance	$	2,213		$	3,047	$	1,275		$	2,232		$	8,767
Provision for credit losses		446			567		(3	)		1,570			2,580
Loans charged off		(42	)		—		(221	)		(2,224	)		(2,487	)
Recoveries		67			39		485			637			1,228
Total ending allowance balance	$	2,684		$	3,653	$	1,536		$	2,215		$	10,088

December 31, 2023	Residential Real Estate			Commercial Real Estate			Commercial & Industrial			Consumer			Total
Allowance for credit losses:
Beginning balance	$	2,026		$	2,200		$	1,177		$	2,028		$	7,431
Provision for credit losses		251			824			(85	)		1,040			2,030
Loans charged off		(121	)		(132	)		(29	)		(1,410	)		(1,692	)
Recoveries		57			155			212			574			998
Total ending allowance balance	$	2,213		$	3,047		$	1,275		$	2,232		$	8,767

The following table presents the amortized cost basis of collateral dependent loans by class of loans as of December 31, 2024 and 2023:

	Collateral Type
December 31, 2024	Real Estate		Business Assets		Total
Residential real estate	$	569	$	—	$	569
Commercial real estate:
Owner-occupied		804		140		944
Non-Owner-occupied		110		—		110
Construction		637		—		637
Commercial & Industrial		285		3,044		3,329
Consumer:
Automobile		—		38		38
Home equity		50		26		76
Other		—		81		81
Total collateral dependent loans	$	2,455	$	3,329	$	5,784

	Collateral Type
December 31, 2023	Real Estate		Business Assets		Total
Residential real estate	$	1,663	$	—	$	1,663
Commercial real estate:
Owner-occupied		700		258		958
Consumer:
Home equity		27		—		27
Total collateral dependent loans	$	2,390	$	258	$	2,648

The recorded investment of a loan excludes accrued interest and net deferred origination fees and costs due to immateriality.

Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified as impaired loans.

The Company transfers loans to other real estate owned (“OREO”), at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of December 31, 2024, the Company had no OREO for residential real estate properties compared to $68 at December 31, 2023. In addition, nonaccrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $342 and $348 as of December 31, 2024 and 2023, respectively.