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Loans
 12 Months Ended
Dec. 31, 2023
Loans  
Loans

(3) Loans

 

Major classifications of loans at December 31, 2023 and 2022 are summarized as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

Real estate loans:

 

 

 

 

 

 

Construction and land development

 

$136,263

 

 

 

114,291

 

Single-family residential

 

 

354,896

 

 

 

322,111

 

Single-family residential - Banco de la Gente non-traditional

 

 

17,816

 

 

 

20,019

 

Commercial

 

 

425,736

 

 

 

406,622

 

Multifamily and farmland

 

 

62,959

 

 

 

65,481

 

Total real estate loans

 

 

997,670

 

 

 

928,524

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

Commercial

 

 

70,862

 

 

 

81,706

 

Farm

 

 

563

 

 

 

946

 

Consumer

 

 

7,045

 

 

 

6,927

 

All other

 

 

16,926

 

 

 

14,505

 

 

 

 

 

 

 

 

 

 

Total loans

 

 

1,093,066

 

 

 

1,032,608

 

 

 

 

 

 

 

 

 

 

Less allowance for credit losses

 

 

(11,041)

 

 

(10,494)

 

 

 

 

 

 

 

 

 

Total net loans

 

$1,082,025

 

 

 

1,022,114

 

  

The above table includes deferred costs, net of deferred fees, totaling $807,000 and $909,000 at December 31, 2023 and December 31, 2022, respectively.

 

The Bank makes loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties and also in Mecklenburg, Wake, Rowan and Forsyth counties of North Carolina. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market. Risk characteristics of the major components of the Bank’s loan portfolio are discussed below:

 

 

·

Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral.

 

 

 

 

·

Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.

 

 

 

 

·

Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over the loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property.

 

 

 

 

·

Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business.

 

 

 

 

·

Multifamily and farmland loans – Decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.

 

Loans are considered past due if the required principal and interest payments have not been received within 30 days of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Generally, a loan is placed on non-accrual status when it is over 90 days past due and there is reasonable doubt that all principal will be collected. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 

On March 27, 2020, President Trump signed the CARES Act, which established a $2 trillion economic stimulus package, including cash payments to individuals, supplemental unemployment insurance benefits and a $349 billion loan program administered through the PPP. Under the PPP, small businesses, sole proprietorships, independent contractors and self-employed individuals were able to apply for loans from existing SBA lenders and other approved regulated lenders, subject to certain limitations and eligibility criteria. A second round of PPP funding provided a total of $320 billion additional funding for the PPP. The Bank participated as a lender in the PPP. Total PPP loans originated during the years ended December 31, 2020 and 2021 amounted to $128.1 million. The Bank did not have any PPP loans outstanding at December 31, 2023. The outstanding balance of PPP loans was $103,000 at December 31, 2022. These loans are classified as commercial loans in the tables above. The Bank recognized $948,000 and $3.4 million of PPP loan fee income for the year ended December 31, 2022 and year ended December 31, 2021, respectively. No PPP loan fee income was recognized for the year ended December 31, 2023.

 

The following tables present an age analysis of past due loans, by loan type, as of December 31, 2023 and 2022:

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Loans 30-89 Days Past Due

 

 

 Loans 90 or More Days Past Due

 

 

 Total Past Due Loans

 

 

 Total Current Loans

 

 

 Total Loans

 

 

 Accruing Loans 90 or More Days Past Due

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$50

 

 

 

-

 

 

 

50

 

 

 

136,213

 

 

 

136,263

 

 

 

-

 

Single-family residential

 

 

2,708

 

 

 

297

 

 

 

3,005

 

 

 

351,891

 

 

 

354,896

 

 

 

-

 

Single-family residential - Banco de la Gente non-traditional

 

 

2,279

 

 

 

199

 

 

 

2,478

 

 

 

15,338

 

 

 

17,816

 

 

 

-

 

Commercial

 

 

13

 

 

 

-

 

 

 

13

 

 

 

425,723

 

 

 

425,736

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

62,959

 

 

 

62,959

 

 

 

-

 

Total real estate loans

 

 

5,050

 

 

 

496

 

 

 

5,546

 

 

 

992,124

 

 

 

997,670

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

125

 

 

 

-

 

 

 

125

 

 

 

70,737

 

 

 

70,862

 

 

 

-

 

Farm

 

 

-

 

 

 

-

 

 

 

-

 

 

 

563

 

 

 

563

 

 

 

-

 

Consumer

 

 

63

 

 

 

-

 

 

 

63

 

 

 

6,982

 

 

 

7,045

 

 

 

-

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16,926

 

 

 

16,926

 

 

 

-

 

Total loans

 

$5,238

 

 

 

496

 

 

 

5,734

 

 

 

1,087,332

 

 

 

1,093,066

 

 

 

-

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Loans 30-89 Days Past Due

 

 

 Loans 90 or More Days Past Due

 

 

 Total Past Due Loans

 

 

 Total Current Loans

 

 

 Total Loans

 

 

 Accruing Loans 90 or More Days Past Due

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$363

 

 

 

-

 

 

 

363

 

 

 

113,928

 

 

 

114,291

 

 

 

-

 

Single-family residential

 

 

4,318

 

 

 

256

 

 

 

4,574

 

 

 

317,537

 

 

 

322,111

 

 

 

-

 

Single-family residential - Banco de la Gente non-traditional

 

 

2,977

 

 

 

264

 

 

 

3,241

 

 

 

16,778

 

 

 

20,019

 

 

 

-

 

Commercial

 

 

306

 

 

 

-

 

 

 

306

 

 

 

406,316

 

 

 

406,622

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

65,481

 

 

 

65,481

 

 

 

-

 

Total real estate loans

 

 

7,964

 

 

 

520

 

 

 

8,484

 

 

 

920,040

 

 

 

928,524

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

3

 

 

 

-

 

 

 

3

 

 

 

81,703

 

 

 

81,706

 

 

 

-

 

Farm

 

 

-

 

 

 

-

 

 

 

-

 

 

 

946

 

 

 

946

 

 

 

-

 

Consumer

 

 

71

 

 

 

-

 

 

 

71

 

 

 

6,856

 

 

 

6,927

 

 

 

-

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14,505

 

 

 

14,505

 

 

 

-

 

Total loans

 

$8,038

 

 

 

520

 

 

 

8,558

 

 

 

1,024,050

 

 

 

1,032,608

 

 

 

-

 

 

The following table presents the Bank’s non-accrual loans as of December 31, 2023 and 2022:

 

 

 

 CECL Methodology

 

 

 Incurred Loss Methodology

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

 Nonaccrual Loans

 

 

 Nonaccrual Loans

 

 

 Total

 

 

 Total

 

 

 

 With No

 

 

 With

 

 

 Nonaccrual 

 

 

 Nonaccrual 

 

(Dollars in thousands)

 

Allowance

 

 

Allowance

 

 

 Loans

 

 

 Loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$45

 

 

 

-

 

 

 

45

 

 

 

53

 

Single-family residential

 

 

1,716

 

 

 

-

 

 

 

1,716

 

 

 

1,914

 

Single-family residential - Banco de la Gente non-traditional

 

 

1,586

 

 

 

-

 

 

 

1,586

 

 

 

1,532

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

129

 

     Multifamily and farmland

 

 

76

 

 

 

-

 

 

 

76

 

 

 

91

 

Total real estate loans

 

 

3,423

 

 

 

-

 

 

 

3,423

 

 

 

3,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

31

 

 

 

432

 

 

 

463

 

 

 

-

 

Consumer

 

 

1

 

 

 

-

 

 

 

1

 

 

 

9

 

Total

 

$3,455

 

 

 

432

 

 

 

3,887

 

 

 

3,728

 

 

Interest income is not recognized on non-accrual loans.

 

The following table represents the accrued interest receivables written off by reversing interest income during the year ended December 31, 2023:

 

(Dollars in thousands)

 

 

 

 

 

For the Year Ended

 

 

 

December 31, 2023

 

Real estate loans:

 

 

 

Single-family residential

 

$33

 

Total real estate loans

 

 

33

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

Commercial

 

 

12

 

Consumer

 

 

1

 

 

 

 

 

 

Total loans

 

$46

 

 

Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. There were no collateral dependent loans identified in the Company’s December 31, 2023 CECL analysis.

 

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

 

Because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Bank modifies loans by providing principal forgiveness on certain loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

 

In some cases, the Bank may modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

 

The following table shows the amortized cost basis at December 31, 2023 of the loans to borrowers experiencing financial difficulty that were modified during the year ended December 31, 2023, disaggregated by loan class and type of concession granted.

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 Term Extension

 

 

 

Amortized Cost Basis at December 31, 2023

 

 

% of Loan Class

 

Loan class:

 

 

 

 

 

 

Single-family residential

 

$149

 

 

 

0.04%

Commercial real estate

 

 

669

 

 

 

0.16%

Commercial not secured by real estate

 

 

 350

 

 

 

 0.49

%

Total

 

$1,168

 

 

 

 

 

  

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty.

 

Term Extension

Loan Class

Financial Effect

Single-family residential

 

Forbearance agreement on matured home equity line of credit (HELOC) that was modified to 180 month term.

Commercial real estate

 

Extended existing amortization from 148 months to 173 months to keep existing payment the same with the current market rate.

Commercial not secured by real estate

 

Matured balloon loan converted to amortizing term loan.

Upon the Bank’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

 

No loans modified in the year ended December 31, 2023 that were made to borrowers experiencing financial difficulty had been written off at December 31, 2023.

 

The Bank closely monitors the performance of those loans that are modified because borrowers are experiencing financial difficulty so as to understand the effectiveness of its modification efforts. The following table shows the performance of loans that have been modified in the year ended December 31, 2023.

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 Payment Status (Amortized Cost Basis)

 

 

 

Current

 

 

30 - 89 Days Past Due

 

 

90 + Days Past Due

 

Loan type:

 

 

 

 

 

 

 

 

 

Single-family residential

 

$149

 

 

 

-

 

 

 

-

 

Commercial real estate

 

 

669

 

 

 

-

 

 

 

-

 

Commercial not secured by real estate

 

 

 350

 

 

 

 

 

 

 

 

 

Total

 

$1,168

 

 

 

-

 

 

 

-

 

 

The following tables present impaired loans as of and for the years ended December 31, 2022 and 2021, under the incurred loss methodology:

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Unpaid Contractual Principal Balance

 

 

 Recorded Investment With No Allowance

 

 

 Recorded Investment With Allowance

 

 

 Recorded Investment in Impaired Loans

 

 

 Related Allowance

 

 

 Average Outstanding Impaired Loans

 

 

 YTD Interest Income Recognized

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$110

 

 

 

-

 

 

 

110

 

 

 

110

 

 

 

2

 

 

 

75

 

 

 

8

 

Single-family residential

 

 

3,912

 

 

 

236

 

 

 

3,300

 

 

 

3,536

 

 

 

60

 

 

 

5,194

 

 

 

194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single-family residential - Banco de la Gente non-traditional

 

 

10,441

 

 

 

-

 

 

 

9,748

 

 

 

9,748

 

 

 

611

 

 

 

8,757

 

 

 

552

 

Commercial

 

 

1,785

 

 

 

421

 

 

 

1,346

 

 

 

1,767

 

 

 

9

 

 

 

1,916

 

 

 

93

 

Multifamily and farmland

 

 

104

 

 

 

-

 

 

 

91

 

 

 

91

 

 

 

-

 

 

 

96

 

 

 

5

 

Total impaired real estate loans

 

 

16,352

 

 

 

657

 

 

 

14,595

 

 

 

15,252

 

 

 

682

 

 

 

16,038

 

 

 

852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

116

 

 

 

-

 

 

 

116

 

 

 

116

 

 

 

1

 

 

 

137

 

 

 

8

 

Consumer

 

 

11

 

 

 

-

 

 

 

9

 

 

 

9

 

 

 

-

 

 

 

15

 

 

 

2

 

Total impaired loans

 

$16,479

 

 

 

657

 

 

 

14,720

 

 

 

15,377

 

 

 

683

 

 

 

16,190

 

 

 

862

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Unpaid Contractual Principal Balance

 

 

 Recorded Investment With No Allowance

 

 

 Recorded Investment With Allowance

 

 

 Recorded Investment in Impaired Loans

 

 

 Related Allowance

 

 

 Average Outstanding Impaired Loans

 

 

 YTD Interest Income Recognized

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$73

 

 

 

-

 

 

 

73

 

 

 

73

 

 

 

3

 

 

 

82

 

 

 

6

 

Single-family residential

 

 

5,138

 

 

 

524

 

 

 

4,374

 

 

 

4,898

 

 

 

86

 

 

 

6,017

 

 

 

253

 

Single-family residential - Banco de la Gente non-traditional

 

 

11,753

 

 

 

-

 

 

 

10,922

 

 

 

10,922

 

 

 

687

 

 

 

10,325

 

 

 

609

 

Commercial

 

 

2,138

 

 

 

435

 

 

 

1,608

 

 

 

2,043

 

 

 

11

 

 

 

2,385

 

 

 

109

 

Multifamily and farmland

 

 

113

 

 

 

-

 

 

 

105

 

 

 

105

 

 

 

-

 

 

 

110

 

 

 

6

 

Total impaired real estate loans

 

 

19,215

 

 

 

959

 

 

 

17,082

 

 

 

18,041

 

 

 

787

 

 

 

18,919

 

 

 

983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

282

 

 

 

49

 

 

 

170

 

 

 

219

 

 

 

2

 

 

 

271

 

 

 

19

 

Consumer

 

 

8

 

 

 

-

 

 

 

4

 

 

 

4

 

 

 

-

 

 

 

11

 

 

 

1

 

Total impaired loans

 

$19,505

 

 

 

1,008

 

 

 

17,256

 

 

 

18,264

 

 

 

789

 

 

 

19,201

 

 

 

1,003

 

 

Impaired loans collectively evaluated for impairment totaled $4.9 million and $5.3 million at December 31, 2022 and 2021, respectively and are included in the tables above. Allowance on impaired loans collectively evaluated for impairment totaled $44,000 and $48,000 at December 31, 2022 and 2021, respectively.

 

Past due Troubled Debt Restructurings (“TDR”) loans and non-accrual TDR loans totaled $3.7 million and $2.2 million at December 31, 2022 and December 31, 2021, respectively. The terms of these loans have been renegotiated to provide a concession to original terms, including a reduction in principal or interest as a result of the deteriorating financial position of the borrower. There were no performing loans classified as TDR loans at December 31, 2022 and December 31, 2021.

 

There were no new TDR modifications during the years ended December 31, 2022 and 2021.

 

There were no TDR loans with a payment default occurring within 12 months of the restructure date, and the payment default occurring during the years ended December 31, 2022 and 2021. TDR loans are deemed to be in default if they become past due by 90 days or more.

 

The fair value measurements for mortgage loans held for sale, impaired loans and individually evaluated loans on a non-recurring basis at December 31, 2023 and 2022 are presented below. The Bank’s valuation methodology is discussed in Note 15.

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

Measurements

December 31, 2023

 

 

Level 1 Valuation

 

 

Level 2 Valuation

 

 

Level 3 Valuation

 

Mortgage loans held for sale

 

$686

 

 

 

-

 

 

 

-

 

 

 

686

 

Individually evaluated loans

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

Measurements

December 31, 2022

 

 

Level 1 Valuation

 

 

Level 2 Valuation

 

 

Level 3 Valuation

 

Mortgage loans held for sale

 

$211

 

 

 

-

 

 

 

-

 

 

 

211

 

Impaired loans

 

$14,694

 

 

 

-

 

 

 

-

 

 

 

14,694

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

December 31, 2023

 

 

Fair Value

December 31, 2022

 

 

Valuation Technique

 

Significant Unobservable Inputs

 

 

General Range of Significant Unobservable Input Values

 

Mortgage loans held for sale

 

$686

 

 

$211

 

 

Rate lock commitment

 

 

N/A

 

 

 

N/A

 

Individually evaluated loans

 

$-

 

 

$14,694

 

 

 Appraised value and discounted cash flows

 

Discounts to reflect current market conditions and ultimate collectability

 

 

0 - 25%

 

   

The following tables present changes in the allowance for credit losses for the years ended December 31, 2023, 2022 and 2021. The December 31, 2023 table reflects the CECL methodology and the December 31, 2022 and 2021 tables reflects the Incurred Loss methodology. PPP loans are excluded from the allowance for credit losses because PPP loans are guaranteed by SBA. Two loans, totaling $432,000, were individually evaluated as of December 31, 2023.

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and Land Development

 

 

Single-Family Residential

 

 

Single-Family Residential - Banco de la Gente non-traditional

 

 

Commercial

 

 

Multifamily and Farmland

 

 

Commercial

 

 

Farm

 

 

Consumer and All Other

 

 

Unallocated

 

 

Total

 

Twelve months ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$1,415

 

 

 

2,322

 

 

 

763

 

 

 

3,207

 

 

 

164

 

 

 

657

 

 

 

-

 

 

 

214

 

 

 

1,752

 

 

 

10,494

 

Adjustment for CECL implementation

 

 

3,781

 

 

 

715

 

 

 

(576)

 

 

(986)

 

 

115

 

 

 

(295)

 

 

2

 

 

 

54

 

 

 

(1,752)

 

 

1,058

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(129)

 

 

-

 

 

 

(569)

 

 

-

 

 

 

(698)

Recoveries

 

 

-

 

 

 

171

 

 

 

-

 

 

 

6

 

 

 

-

 

 

 

67

 

 

 

-

 

 

 

147

 

 

 

-

 

 

 

391

 

Provision (recovery) for unfunded commitments

 

 

(437)

 

 

(66)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

(6)

 

 

-

 

 

 

(507)

Provision (recovery) for credit losses

 

 

913

 

 

 

179

 

 

 

(16)

 

 

90

 

 

 

(10)

 

 

512

 

 

 

-

 

 

 

405

 

 

 

-

 

 

 

2,073

 

Ending balance

 

$5,672

 

 

 

3,321

 

 

 

171

 

 

 

2,317

 

 

 

269

 

 

 

814

 

 

 

2

 

 

 

245

 

 

 

-

 

 

 

12,811

 

Allowance for credit loss-loans

 

$3,913

 

 

 

3,313

 

 

 

171

 

 

 

2,317

 

 

 

268

 

 

 

812

 

 

 

2

 

 

 

245

 

 

 

-

 

 

 

11,041

 

Allowance for credit loss unfunded loan commitments

 

 

1,759

 

 

 

8

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,770

 

Total allowance for credit losses

 

$5,672

 

 

 

3,321

 

 

 

171

 

 

 

2,317

 

 

 

269

 

 

 

814

 

 

 

2

 

 

 

245

 

 

 

-

 

 

 

12,811

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and Land Development

 

 

Single-Family Residential

 

 

Single-Family Residential - Banco de la Gente Non-traditional

 

 

Commercial

 

 

Multifamily and Farmland

 

 

Commercial

 

 

Farm

 

 

Consumer and All Other

 

 

Unallocated

 

 

Total

 

Twelve months ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$1,193

 

 

 

2,013

 

 

 

864

 

 

 

2,234

 

 

 

150

 

 

 

711

 

 

 

-

 

 

 

110

 

 

 

2,080

 

 

 

9,355

 

Charge-offs

 

 

-

 

 

 

(128)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(33)

 

 

-

 

 

 

(591)

 

 

-

 

 

 

(752)

Recoveries

 

 

-

 

 

 

229

 

 

 

-

 

 

 

9

 

 

 

-

 

 

 

72

 

 

 

-

 

 

 

109

 

 

 

-

 

 

 

419

 

Provision

 

 

222

 

 

 

208

 

 

 

101)

 

 

964

 

 

 

14

 

 

 

(93)

 

 

-

 

 

 

586

 

 

 

(328)

 

 

1,472

 

Ending balance

 

$1,415

 

 

 

2,322

 

 

 

763

 

 

 

3,207

 

 

 

164

 

 

 

657

 

 

 

-

 

 

 

214

 

 

 

1,752

 

 

 

10,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance: individually evaluated for impairment

 

$-

 

 

 

36

 

 

 

597

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

639

 

Ending balance: collectively evaluated for impairment

 

 

1,415

 

 

 

2,286

 

 

 

166

 

 

 

3,201

 

 

 

164

 

 

 

657

 

 

 

-

 

 

 

214

 

 

 

1,752

 

 

 

9,855

 

Ending balance

 

$1,415

 

 

 

2,322

 

 

 

763

 

 

 

3,207

 

 

 

164

 

 

 

657

 

 

 

-

 

 

 

214

 

 

 

1,752

 

 

 

10,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans at December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$114,446

 

 

 

322,262

 

 

 

20,019

 

 

 

406,750

 

 

 

65,562

 

 

 

81,307

 

 

 

938

 

 

 

21,324

 

 

 

-

 

 

 

1,032,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance: individually evaluated for impairment

 

$-

 

 

 

537

 

 

 

8,555

 

 

 

1,388

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,480

 

Ending balance: collectively evaluated for impairment

 

$114,446

 

 

 

321,725

 

 

 

11,464

 

 

 

405,362

 

 

 

65,562

 

 

 

81,307

 

 

 

938

 

 

 

21,324

 

 

 

-

 

 

 

1,022,128

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and Land Development

 

 

Single-Family Residential

 

 

Single-Family Residential - Banco de la Gente Non-traditional

 

 

Commercial

 

 

Multifamily and Farmland

 

 

Commercial

 

 

Farm

 

 

Consumer and All Other

 

 

Unallocated

 

 

Total

 

Twelve months ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$1,196

 

 

 

1,843

 

 

 

1,052

 

 

 

2,212

 

 

 

122

 

 

 

1,345

 

 

 

-

 

 

 

128

 

 

 

2,010

 

 

 

9,908

 

Charge-offs

 

 

-

 

 

 

(89)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(293)

 

 

-

 

 

 

(380)

 

 

-

 

 

 

(762)

Recoveries

 

 

121

 

 

 

271

 

 

 

-

 

 

 

52

 

 

 

3

 

 

 

786

 

 

 

-

 

 

 

139

 

 

 

-

 

 

 

1,372

 

Provision

 

 

(124)

 

 

(12)

 

 

(188)

 

 

(30)

 

 

25

 

 

 

(1,127)

 

 

-

 

 

 

223

 

 

 

70

 

 

 

(1,163)

Ending balance

 

$1,193

 

 

 

2,013

 

 

 

864

 

 

 

2,234

 

 

 

150

 

 

 

711

 

 

 

-

 

 

 

110

 

 

 

2,080

 

 

 

9,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance: individually evaluated for impairment

 

$1

 

 

 

57

 

 

 

672

 

 

 

7

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

737

 

Ending balance: collectively evaluated for impairment

 

 

1,192

 

 

 

1,956

 

 

 

192

 

 

 

2,227

 

 

 

150

 

 

 

711

 

 

 

-

 

 

 

110

 

 

 

2,080

 

 

 

8,618

 

Ending balance

 

$1,193

 

 

 

2,013

 

 

 

864

 

 

 

2,234

 

 

 

150

 

 

 

711

 

 

 

-

 

 

 

110

 

 

 

2,080

 

 

 

9,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans at December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$95,760

 

 

 

266,111

 

 

 

23,147

 

 

 

337,841

 

 

 

58,366

 

 

 

91,172

 

 

 

796

 

 

 

11,676

 

 

 

-

 

 

 

884,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance: individually evaluated for impairment

 

$6

 

 

 

1,633

 

 

 

9,795

 

 

 

1,437

 

 

 

-

 

 

 

49

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12,920

 

Ending balance: collectively evaluated for impairment

 

$95,754

 

 

 

264,478

 

 

 

13,352

 

 

 

336,404

 

 

 

58,366

 

 

 

91,123

 

 

 

796

 

 

 

11,676

 

 

 

-

 

 

 

871,949

 

 

The Bank utilizes several credit quality indicators to manage credit risk in an ongoing manner. The Bank uses an internal risk grade system that categorizes loans into pass, watch or substandard categories.

 

The Bank uses the following credit quality indicators:

 

 

·

Pass – Includes loans ranging from excellent quality with a minimal amount of credit risk to loans with higher risk and servicing needs but still are considered to be acceptable. The higher risk loans in this category are not problem credits presently, but may be in the future if the borrower is unable to change its present course.

 

 

 

 

·

Watch – These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date.

 

 

 

 

·

Substandard – A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

 

 

 

 

·

Doubtful – Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.

 

 

 

 

·

Loss – Loans classified Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future.

 

The following table presents by credit quality indicator, loan class and year of origination, the amortized cost of the Bank’s loans as of December 31, 2023.

 

 

 

 

 

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

(dollars in thousands)

 

Term Loans by Origination Year

 

 

Revolving

 

 

Converted to

 

 

Total

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Term Loans

 

 

Loans

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans Construction and land development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$39,896

 

 

 

71,429

 

 

 

10,736

 

 

 

6,692

 

 

 

1,721

 

 

 

3,914

 

 

 

1,337

 

 

 

-

 

 

 

135,725

 

Watch

 

 

-

 

 

 

-

 

 

 

448

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

448

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

90

 

 

 

-

 

 

 

-

 

 

 

90

 

Total Construction and land development

 

$39,896

 

 

 

71,429

 

 

 

11,184

 

 

 

6,692

 

 

 

1,721

 

 

 

4,004

 

 

 

1,337

 

 

 

-

 

 

 

136,263

 

Single family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$32,220

 

 

 

76,326

 

 

 

47,490

 

 

 

24,813

 

 

 

12,984

 

 

 

49,700

 

 

 

106,962

 

 

 

-

 

 

 

350,495

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

89

 

 

 

717

 

 

 

860

 

 

 

-

 

 

 

1,666

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11

 

 

 

2,345

 

 

 

379

 

 

 

-

 

 

 

2,735

 

Total single family

 

$32,220

 

 

 

76,326

 

 

 

47,490

 

 

 

24,813

 

 

 

13,084

 

 

 

52,762

 

 

 

108,201

 

 

 

-

 

 

 

354,896

 

Single family-Banco de la Gente non-traditional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,147

 

 

 

-

 

 

 

-

 

 

 

15,147

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

672

 

 

 

-

 

 

 

-

 

 

 

672

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,997

 

 

 

-

 

 

 

-

 

 

 

1,997

 

Total Banco de la Gente non-traditional

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

17,816

 

 

 

-

 

 

 

-

 

 

 

17,816

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$45,671

 

 

 

109,255

 

 

 

78,645

 

 

 

61,973

 

 

 

29,579

 

 

 

92,753

 

 

 

2,158

 

 

 

-

 

 

 

420,034

 

Watch

 

 

232

 

 

 

-

 

 

 

-

 

 

 

116

 

 

 

-

 

 

 

4,943

 

 

 

-

 

 

 

-

 

 

 

5,291

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

411

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

411

 

Total commercial

 

$45,903

 

 

 

109,255

 

 

 

78,645

 

 

 

62,500

 

 

 

29,579

 

 

 

97,696

 

 

 

2,158

 

 

 

-

 

 

 

425,736

 

Multifamily and farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$7,904

 

 

 

13,286

 

 

 

21,512

 

 

 

6,624

 

 

 

3,158

 

 

 

9,851

 

 

 

501

 

 

 

-

 

 

 

62,836

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

47

 

 

 

-

 

 

 

-

 

 

 

47

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

-

 

 

 

-

 

 

 

76

 

Total multifamily and farmland

 

$7,904

 

 

 

13,286

 

 

 

21,512

 

 

 

6,624

 

 

 

3,158

 

 

 

9,974

 

 

 

501

 

 

 

-

 

 

 

62,959

 

Total real estate loans

 

$125,923

 

 

 

270,296

 

 

 

158,831

 

 

 

100,629

 

 

 

47,542

 

 

 

182,252

 

 

 

112,197

 

 

 

-

 

 

 

997,670

 

Loans not secured by real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$9,879

 

 

 

14,122

 

 

 

4,841

 

 

 

2,942

 

 

 

2,232

 

 

 

12,030

 

 

 

23,411

 

 

 

-

 

 

 

69,457

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

57

 

 

 

102

 

 

 

783

 

 

 

-

 

 

 

942

 

Substandard

 

 

31

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

31

 

Loss

 

 

-

 

 

 

82

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

350

 

 

 

 -

 

 

 

432

 

Total Commercial

 

$9,910

 

 

 

14,204

 

 

 

4,841

 

 

 

2,942

 

 

 

2,289

 

 

 

12,132

 

 

 

24,544

 

 

 

-

 

 

 

70,862

 

Farm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$211

 

 

 

42

 

 

 

83

 

 

 

-

 

 

 

1

 

 

 

27

 

 

 

199

 

 

 

-

 

 

 

563

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total farm

 

$211

 

 

 

42

 

 

 

83

 

 

 

-

 

 

 

1

 

 

 

27

 

 

 

199

 

 

 

-

 

 

 

563

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$2,341

 

 

 

1,352

 

 

 

404

 

 

 

222

 

 

 

72

 

 

 

58

 

 

 

2,591

 

 

 

-

 

 

 

7,040

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Substandard

 

 

-

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

5

 

Total consumer

 

$2,341

 

 

 

1,352

 

 

 

406

 

 

 

222

 

 

 

72

 

 

 

58

 

 

 

2,594

 

 

 

-

 

 

 

7,045

 

All other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$87

 

 

 

6,401

 

 

 

474

 

 

 

274

 

 

 

599

 

 

 

3,698

 

 

 

5,256

 

 

 

-

 

 

 

16,789

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

74

 

 

 

63

 

 

 

-

 

 

 

137

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total all other

 

$87

 

 

 

6,401

 

 

 

474

 

 

 

274

 

 

 

599

 

 

 

3,772

 

 

 

5,319

 

 

 

-

 

 

 

16,926

 

Total loans not secured by real estate

 

$12,549

 

 

 

21,999

 

 

 

5,804

 

 

 

3,438

 

 

 

2,961

 

 

 

15,989

 

 

 

32,656

 

 

 

-

 

 

 

95,396

 

Total loans

 

$138,472

 

 

 

292,295

 

 

 

164,635

 

 

 

104,067

 

 

 

50,503

 

 

 

198,241

 

 

 

144,853

 

 

 

-

 

 

 

1,093,066

 

 

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs as of December 31, 2023.

    

 

 

 

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

(dollars in thousands)

 

Gross Loan Charge-offs by Origination Year

 

 

Revolving

 

 

Converted to

 

 

Total

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Term Loans

 

 

Loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Single-family residential

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Single-family residential -

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Banco de la Gente non-traditional

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

49

 

 

 

51

 

 

 

16

 

 

 

-

 

 

 

13

 

 

 

-

 

 

 

-

 

 

 

129

 

Farm

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Consumer

 

 

-

 

 

 

41

 

 

 

53

 

 

 

6

 

 

 

1

 

 

 

468

 

 

 

-

 

 

 

-

 

 

 

569

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross charge-offs

 

$-

 

 

 

90

 

 

 

104

 

 

 

22

 

 

 

1

 

 

 

481

 

 

 

-

 

 

 

-

 

 

 

698

 

 

The following table presents the credit risk profile of each loan type based on credit quality indicators as of December 31, 2022:

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and Land Development

 

 

Single-Family Residential

 

 

Single-Family Residential - Banco de la Gente non-traditional

 

 

Commercial

 

 

Multifamily and Farmland

 

 

Commercial

 

 

Farm

 

 

Consumer

 

 

All Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$114,127

 

 

 

317,699

 

 

 

16,410

 

 

 

402,108

 

 

 

65,267

 

 

 

80,995

 

 

 

946

 

 

 

6,911

 

 

 

14,360

 

 

 

1,018,823

 

Watch

 

 

54

 

 

 

922

 

 

 

1,136

 

 

 

3,963

 

 

 

123

 

 

 

711

 

 

 

-

 

 

 

1

 

 

 

145

 

 

 

7,055

 

Substandard

 

 

110

 

 

 

3,490

 

 

 

2,473

 

 

 

551

 

 

 

91

 

 

 

-

 

 

 

-

 

 

 

15

 

 

 

-

 

 

 

6,730

 

Total

 

$114,291

 

 

 

322,111

 

 

 

20,019

 

 

 

406,622

 

 

 

65,481

 

 

 

81,706

 

 

 

946

 

 

 

6,927

 

 

 

14,505

 

 

 

1,032,608