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Loans
 3 Months Ended
Mar. 31, 2025
Loans  
Loans

(5) Loans

 

Major classifications of loans at March 31, 2025 and December 31, 2024 are summarized as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Real estate loans:

 

 

 

 

 

 

Construction and land development

 

$126,645

 

 

 

122,328

 

Single-family residential

 

 

387,901

 

 

 

384,509

 

Commercial

 

 

479,194

 

 

 

471,444

 

Multifamily and farmland

 

 

69,470

 

 

 

69,671

 

Total real estate loans

 

 

1,063,210

 

 

 

1,047,952

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

Commercial

 

 

63,222

 

 

 

63,837

 

Farm

 

 

481

 

 

 

401

 

Consumer

 

 

6,338

 

 

 

6,475

 

All other

 

 

18,829

 

 

 

19,739

 

 

 

 

 

 

 

 

 

 

Total loans

 

 

1,152,080

 

 

 

1,138,404

 

 

 

 

 

 

 

 

 

 

Less allowance for credit losses

 

 

(10,047)

 

 

(9,995)

 

 

 

 

 

 

 

 

 

Total net loans

 

$1,142,033

 

 

 

1,128,409

 

  

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.

The following tables present an age analysis of past due loans, by loan type, as of March 31, 2025 and December 31, 2024:

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Loans 30-89 Days

Past Due

 

 

 Nonaccrual Loans

 

 

 Total

Past Due Loans

 

 

 Total

Current

Loans

 

 

 Total

Loans

 

 

 Accruing Loans 90 or More Days Past Due

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$333

 

 

 

35

 

 

 

368

 

 

 

126,277

 

 

 

126,645

 

 

 

-

 

Single-family residential

 

 

3,676

 

 

 

4,235

 

 

 

7,911

 

 

 

379,990

 

 

 

387,901

 

 

 

-

 

Commercial

 

 

360

 

 

 

416

 

 

 

776

 

 

 

478,418

 

 

 

479,194

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

69,470

 

 

 

69,470

 

 

 

-

 

Total real estate loans

 

 

4,369

 

 

 

4,686

 

 

 

9,055

 

 

 

1,054,155

 

 

 

1,063,210

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

290

 

 

 

290

 

 

 

62,932

 

 

 

63,222

 

 

 

-

 

Farm

 

 

-

 

 

 

-

 

 

 

-

 

 

 

481

 

 

 

481

 

 

 

-

 

Consumer

 

 

20

 

 

 

7

 

 

 

27

 

 

 

6,311

 

 

 

6,338

 

 

 

-

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,829

 

 

 

18,829

 

 

 

-

 

Total loans

 

$4,389

 

 

 

4,983

 

 

 

9,372

 

 

 

1,142,708

 

 

 

1,152,080

 

 

 

-

 

  

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Loans 30-89 Days

Past Due

 

 

 Nonaccrual

Loans

 

 

 Total

Past Due Loans

 

 

 Total

Current

Loans

 

 

 Total

Loans

 

 

 Accruing Loans 90 or More Days Past Due

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$131

 

 

 

37

 

 

 

168

 

 

 

122,160

 

 

 

122,328

 

 

 

-

 

Single-family residential

 

 

5,434

 

 

 

3,720

 

 

 

9,154

 

 

 

375,355

 

 

 

384,509

 

 

 

-

 

Commercial

 

 

87

 

 

 

426

 

 

 

513

 

 

 

470,931

 

 

 

471,444

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

69,671

 

 

 

69,671

 

 

 

-

 

Total real estate loans

 

 

5,652

 

 

 

4,183

 

 

 

9,835

 

 

 

1,038,117

 

 

 

1,047,952

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

360

 

 

 

248

 

 

 

608

 

 

 

63,229

 

 

 

63,837

 

 

 

-

 

Farm

 

 

-

 

 

 

-

 

 

 

-

 

 

 

401

 

 

 

401

 

 

 

-

 

Consumer

 

 

33

 

 

 

9

 

 

 

42

 

 

 

6,433

 

 

 

6,475

 

 

 

-

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

19,739

 

 

 

19,739

 

 

 

-

 

Total loans

 

$6,045

 

 

 

4,440

 

 

 

10,485

 

 

 

1,127,919

 

 

 

1,138,404

 

 

 

-

 

   

The following table presents non-accrual loans as of March 31, 2025 and December 31, 2024:

 

 

 

March 31, 2025

 

 

 

 Nonaccrual Loans

 

 

 Nonaccrual Loans

 

 

 Total

 

 

 

 With No

 

 

 With

 

 

 Nonaccrual 

 

(Dollars in thousands)

 

Allowance

 

 

Allowance

 

 

Loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Construction and land development

 

$-

 

 

 

35

 

 

 

35

 

Single-family residential

 

 

1,345

 

 

 

2,890

 

 

 

4,235

 

Commercial

 

 

416

 

 

 

-

 

 

 

416

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

1,761

 

 

 

2,925

 

 

 

4,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

223

 

 

 

67

 

 

 

290

 

Consumer

 

 

-

 

 

 

7

 

 

 

7

 

Total

 

$1,984

 

 

 

2,999

 

 

 

4,983

 

 

 

December 31, 2024

 

 

 

 Nonaccrual Loans

 

 

 Nonaccrual Loans

 

 

 Total

 

 

 

 With No

 

 

 With

 

 

 Nonaccrual 

 

(Dollars in thousands)

 

Allowance

 

 

Allowance

 

 

Loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Construction and land development

 

$37

 

 

 

-

 

 

 

37

 

Single-family residential

 

 

3,720

 

 

 

-

 

 

 

3,720

 

Commercial

 

 

426

 

 

 

-

 

 

 

426

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

4,183

 

 

 

-

 

 

 

4,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

248

 

 

 

-

 

 

 

248

 

Consumer

 

 

9

 

 

 

-

 

 

 

9

 

Total

 

$4,440

 

 

 

-

 

 

 

4,440

 

 

No interest income was recognized on non-accrual loans for the three months ended March 31, 2025 and 2024.

 

A loan may be individually evaluated for determining the allowance for credit losses when it is determined that it does not share similar risk characteristics with other assets.  Non-accrual loans with an outstanding balance of $250,000 or greater are individually evaluated and totaled $2.0 million and $1.6 million at March 31, 2025 and December 31, 2024, respectively.  Non-accrual loans evaluated collectively as a pool totaled $3.0 million and $2.8 million at March 31, 2025 and December 31, 2024, respectively.  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. Collateral dependent loans require an analysis of the collateral. The fair value of the collateral is discounted by estimated liquidation costs. If the discounted fair value of the collateral is greater than the amortized loan balance, no allowance is required. Otherwise the difference between the balance and the collateral is charged off if deemed uncollectible.

The following table details the amortized cost of collateral dependent loans and any related allowance at March 31, 2025 and December 31, 2024.

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

 

 

 

 Allowance for

 

 

 

 

 

 Allowance for

 

(Dollars in thousands)

 

Amortized

Cost

 

 

Credit

Losses

 

 

Amortized

Cost

 

 

Credit

Losses

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$34

 

 

 

1

 

 

 

37

 

 

 

-

 

Single-family residential

 

 

4,235

 

 

 

26

 

 

 

3,720

 

 

 

-

 

Commercial

 

 

416

 

 

 

-

 

 

 

426

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

4,685

 

 

 

27

 

 

 

4,183

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

261

 

 

 

-

 

 

 

248

 

 

 

-

 

Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$4,946

 

 

 

27

 

 

 

4,431

 

 

 

-

 

The following tables provide a breakdown of collateral dependent loans by collateral type and collateral coverage at March 31, 2025 and 2024.  These tables also show non-accrual loans not considered to be collateral dependent at March 31, 2025 and December 31, 2024.

 

 

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Not Considered

 

 

 

 

(Dollars in thousands)

 

Residential

Property

 

 

Developed

Land

 

 

Commercial

Property

 

 

Business

Assets

 

 

Collateral Dependent

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$-

 

 

 

34

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

34

 

Single-family residential

 

 

4,235

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,235

 

Commercial

 

 

-

 

 

 

-

 

 

 

416

 

 

 

-

 

 

 

-

 

 

 

416

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

4,235

 

 

 

34

 

 

 

416

 

 

 

-

 

 

 

-

 

 

 

4,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

261

 

 

 

-

 

 

 

261

 

Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37

 

 

 

37

 

Total

 

$4,235

 

 

 

34

 

 

 

416

 

 

 

261

 

 

 

37

 

 

 

4,983

 

Collateral Value

 

$12,234

 

 

 

88

 

 

 

655

 

 

 

273

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Not Considered

 

 

 

 

(Dollars in thousands)

 

Residential

Property

 

 

Developed

Land

 

 

Commercial

Property

 

 

Business

Assets

 

 

Collateral Dependent

 

 

Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$-

 

 

 

37

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37

 

Single-family residential

 

 

3,720

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,720

 

Commercial

 

 

-

 

 

 

-

 

 

 

426

 

 

 

-

 

 

 

-

 

 

 

426

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

3,720

 

 

 

37

 

 

 

426

 

 

 

-

 

 

 

-

 

 

 

4,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

248

 

 

 

-

 

 

 

248

 

Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9

 

 

 

9

 

Total

 

$3,720

 

 

 

37

 

 

 

426

 

 

 

248

 

 

 

9

 

 

 

4,440

 

Collateral Value

 

$9,648

 

 

 

88

 

 

 

944

 

 

 

272

 

 

 

 

 

 

 

 

 

 

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.

 

A change to the allowance for credit losses is evaluated based on the nature of the 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.

 

No loans to borrowers experiencing financial difficulty were modified during the three months ended March 31, 2025.  The following table shows the amortized cost basis at March 31, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2024, disaggregated by loan class and type of concession granted. 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis

at March 31, 2024

 

 

% of Loan Class

 

 

Modification Type

 

Financial Effect

 

Loan class:

 

 

 

 

 

 

 

 

 

 

 

Commercial not secured by real estate

 

 

73

 

 

 

0.11%

 

Term Extension

 

Line of credit converted to amortizing term loan.

 

Total

 

$73

 

 

 

 

 

 

 

 

 

 

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 tables show the performance of loans that were modified in the three months ended March 31, 2024.

 

March 31, 2024

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 Payment Status (Amortized Cost Basis)

 

 

 

Current

 

 

30 - 89 Days

Past Due

 

 

90 + Days Past

Due

 

Loan type:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

73

 

 

 

-

 

 

 

-

 

Total

 

$73

 

 

 

-

 

 

 

-

 

 

Management uses several measures to assess and monitor the credit risks in the loan portfolio, including a loan grading system that begins upon loan origination and continues until the loan is collected or collectability becomes doubtful. Upon loan origination, the Bank’s originating loan officer evaluates the quality of the loan and assigns one of eight risk grades. The loan officer monitors the loan’s performance and credit quality and makes changes to the credit grade as conditions warrant. When originated or renewed, all loans over a certain dollar amount receive in-depth reviews and risk assessments by the Bank’s Credit Administration. Before making any changes in these risk grades, management considers assessments as determined by an independent third-party credit review firm (as described below), regulatory examiners and the Bank’s Credit Administration. Any issues regarding the risk assessments are addressed by the Bank’s senior credit administrators and factored into management’s decision to originate or renew the loan. The Bank Board reviews, on a monthly basis, an analysis of the Bank’s reserves relative to the range of reserves estimated by the Bank’s Credit Administration.

 

As an additional measure, the Bank engages an independent third party to review the underwriting, documentation and risk grading analyses. This independent third party reviews and evaluates loan relationships greater than or equal to $1.5 million as well as a periodic sample of commercial relationships with exposures below $1.5 million, excluding loans in default and loans in process of litigation or liquidation.  The third party’s evaluation and report is shared with management and the Bank Board.

 

Management considers certain commercial loans with weak credit risk grades to be individually impaired and measures such impairment based upon available cash flows and the value of the collateral. Allowance or reserve levels are estimated for all other graded loans in the portfolio based on their assigned credit risk grade, type of loan and other matters related to credit risk.

 

Management uses the information developed from the procedures described above in evaluating and grading the loan portfolio. This continual grading process is used to monitor the credit quality of the loan portfolio and to assist management in estimating the allowance.  The provision for credit losses charged or credited to earnings is based upon management’s judgment of the amount necessary to maintain the allowance at a level appropriate to absorb probable incurred losses in the loan portfolio at the balance sheet date.  The amount of the allowance, and any provision, is dependent upon many factors, including growth and changes in the composition of the loan portfolio, net charge-offs, delinquencies, management’s assessment of loan portfolio quality, the value of collateral, and other macro-economic factors and trends.  An evaluation of these factors is performed quarterly by management through an analysis of the appropriateness of the allowance. 

The following tables present changes in the allowance for credit losses for the three months ended March 31, 2025 and 2024. 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and Land Development

 

 

Single-Family Residential

 

 

Commercial

 

 

Multifamily and Farmland

 

 

Commercial

 

 

Farm

 

 

Consumer and All Other

 

 

Total

 

Three months ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,385

 

 

 

3,386

 

 

 

2,322

 

 

 

246

 

 

 

446

 

 

 

1

 

 

 

209

 

 

 

9,995

 

Charge-offs

 

 

-

 

 

 

(5)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(107)

 

 

(112)

Recoveries

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

71

 

 

 

81

 

Provision (recovery) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan losses (1)

 

 

78

 

 

 

(24)

 

 

15

 

 

 

(4)

 

 

(12)

 

 

-

 

 

 

30

 

 

 

83

 

Ending balance

 

$3,463

 

 

 

3,362

 

 

 

2,337

 

 

 

242

 

 

 

439

 

 

 

1

 

 

 

203

 

 

 

10,047

 

Allowance for credit loss-loans

 

$3,463

 

 

 

3,362

 

 

 

2,337

 

 

 

242

 

 

 

439

 

 

 

1

 

 

 

203

 

 

 

10,047

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan commitments

 

 

1,274

 

 

 

3

 

 

 

7

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

1,286

 

Total allowance for credit losses

 

$4,737

 

 

 

3,365

 

 

 

2,344

 

 

 

243

 

 

 

439

 

 

 

1

 

 

 

204

 

 

 

11,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes provision for credit losses related to unfunded commitments. Note 7,"Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and Land Development

 

 

Single-Family Residential

 

 

Commercial

 

 

Multifamily and Farmland

 

 

Commercial

 

 

Farm

 

 

Consumer and All Other

 

 

Total

 

Three months ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,913

 

 

 

3,484

 

 

 

2,317

 

 

 

268

 

 

 

812

 

 

 

2

 

 

 

245

 

 

 

11,041

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(446)

 

 

-

 

 

 

(210)

 

 

(656)

Recoveries

 

 

-

 

 

 

56

 

 

 

201

 

 

 

-

 

 

 

6

 

 

 

-

 

 

 

36

 

 

 

299

 

Provision (recovery) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  loan losses (1)

 

 

(233)

 

 

57

 

 

 

(173)

 

 

45

 

 

 

300

 

 

 

-

 

 

 

167

 

 

 

163

 

Ending balance

 

$3,680

 

 

 

3,597

 

 

 

2,345

 

 

 

313

 

 

 

672

 

 

 

2

 

 

 

238

 

 

 

10,847

 

Allowance for credit loss-loans

 

$3,680

 

 

 

3,597

 

 

 

2,345

 

 

 

313

 

 

 

672

 

 

 

2

 

 

 

238

 

 

 

10,847

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan commitments

 

 

1,692

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

1,698

 

Total allowance for credit losses

 

$5,372

 

 

 

3,602

 

 

 

2,345

 

 

 

313

 

 

 

672

 

 

 

2

 

 

 

239

 

 

 

12,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes provision for credit losses related to unfunded commitments. Note 7,"Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

 

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 March 31, 2025.

 

 

 

Term Loans by Origination Year

 

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Converted to

 

 

 

(dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Revolving

Loans

 

 

Term

Loans

 

 

Total

Loans

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$11,959

 

 

 

43,989

 

 

 

28,700

 

 

 

26,681

 

 

 

4,916

 

 

 

9,824

 

 

 

-

 

 

 

72

 

 

 

126,141

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

441

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

441

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

63

 

 

 

-

 

 

 

-

 

 

 

63

 

Total Construction and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

land development

 

$11,959

 

 

 

43,989

 

 

 

28,700

 

 

 

26,681

 

 

 

5,357

 

 

 

9,887

 

 

 

-

 

 

 

72

 

 

 

126,645

 

Single family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$8,864

 

 

 

22,893

 

 

 

34,893

 

 

 

72,155

 

 

 

43,050

 

 

 

85,136

 

 

 

114,182

 

 

 

-

 

 

 

381,173

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,322

 

 

 

-

 

 

 

-

 

 

 

1,322

 

Substandard

 

 

-

 

 

 

-

 

 

 

31

 

 

 

1,345

 

 

 

96

 

 

 

3,617

 

 

 

317

 

 

 

-

 

 

 

5,406

 

Total single family

 

$8,864

 

 

 

22,893

 

 

 

34,924

 

 

 

73,500

 

 

 

43,146

 

 

 

90,075

 

 

 

114,499

 

 

 

-

 

 

 

387,901

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$14,052

 

 

 

57,648

 

 

 

45,650

 

 

 

137,429

 

 

 

69,605

 

 

 

148,915

 

 

 

2,377

 

 

 

-

 

 

 

475,676

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

453

 

 

 

-

 

 

 

2,253

 

 

 

-

 

 

 

-

 

 

 

2,706

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

812

 

 

 

-

 

 

 

-

 

 

 

812

 

Total commercial

 

$14,052

 

 

 

57,648

 

 

 

45,650

 

 

 

137,882

 

 

 

69,605

 

 

 

151,980

 

 

 

2,377

 

 

 

-

 

 

 

479,194

 

Multifamily and farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$991

 

 

 

990

 

 

 

8,279

 

 

 

20,616

 

 

 

20,455

 

 

 

17,788

 

 

 

310

 

 

 

-

 

 

 

69,429

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

41

 

 

 

-

 

 

 

-

 

 

 

41

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total multifamily and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

farmland

 

$991

 

 

 

990

 

 

 

8,279

 

 

 

20,616

 

 

 

20,455

 

 

 

17,829

 

 

 

310

 

 

 

-

 

 

 

69,470

 

Total real estate loans

 

$35,866

 

 

 

125,520

 

 

 

117,553

 

 

 

258,679

 

 

 

138,563

 

 

 

269,771

 

 

 

117,186

 

 

 

72

 

 

 

1,063,210

 

Loans not secured by real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$2,239

 

 

 

8,400

 

 

 

12,023

 

 

 

5,105

 

 

 

2,598

 

 

 

12,860

 

 

 

19,386

 

 

 

-

 

 

 

62,611

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

136

 

 

 

18

 

 

 

166

 

 

 

1

 

 

 

-

 

 

 

321

 

Substandard

 

 

-

 

 

 

13

 

 

 

25

 

 

 

223

 

 

 

-

 

 

 

29

 

 

 

-

 

 

 

-

 

 

 

290

 

Total Commercial

 

$2,239

 

 

 

8,413

 

 

 

12,048

 

 

 

5,464

 

 

 

2,616

 

 

 

13,055

 

 

 

19,387

 

 

 

-

 

 

 

63,222

 

Farm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$51

 

 

 

49

 

 

 

190

 

 

 

29

 

 

 

-

 

 

 

-

 

 

 

162

 

 

 

-

 

 

 

481

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total farm

 

$51

 

 

 

49

 

 

 

190

 

 

 

29

 

 

 

-

 

 

 

-

 

 

 

162

 

 

 

-

 

 

 

481

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$532

 

 

 

1,496

 

 

 

1,079

 

 

 

574

 

 

 

142

 

 

 

137

 

 

 

2,348

 

 

 

-

 

 

 

6,308

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

 

2

 

 

 

-

 

 

 

10

 

Total consumer

 

$532

 

 

 

1,496

 

 

 

1,079

 

 

 

594

 

 

 

142

 

 

 

145

 

 

 

2,350

 

 

 

-

 

 

 

6,338

 

All other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$130

 

 

 

468

 

 

 

-

 

 

 

9,680

 

 

 

351

 

 

 

2,969

 

 

 

5,231

 

 

 

-

 

 

 

18,829

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total all other

 

$130

 

 

 

468

 

 

 

-

 

 

 

9,680

 

 

 

351

 

 

 

2,969

 

 

 

5,231

 

 

 

-

 

 

 

18,829

 

Total loans not secured

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

by real estate

 

$2,952

 

 

 

10,426

 

 

 

13,317

 

 

 

15,767

 

 

 

3,109

 

 

 

16,169

 

 

 

27,130

 

 

 

-

 

 

 

88,870

 

Total loans

 

$38,818

 

 

 

135,946

 

 

 

130,870

 

 

 

274,446

 

 

 

141,672

 

 

 

285,940

 

 

 

144,316

 

 

 

72

 

 

 

1,152,080

 

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs for the three months ended March 31, 2025.

 

March 31, 2025

 

Gross Loan Charge-offs by Origination Year

 

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

Converted to

 

 

Total

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Loans

 

 

Term Loans

 

 

Loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Single-family residential

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

5

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

5

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Consumer

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

102

 

 

 

-

 

 

 

-

 

 

 

107

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross charge-offs

 

$-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

107

 

 

 

-

 

 

 

-

 

 

 

112

 

 

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, 2024.

 

 

 

Term Loans by Origination Year

 

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

Converted to

 

 

Total

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Loans

 

 

Term Loans

 

 

Loans

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Construction and land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$41,171

 

 

 

29,503

 

 

 

34,495

 

 

 

6,836

 

 

 

5,792

 

 

 

4,020

 

 

 

-

 

 

 

-

 

 

 

121,817

 

        Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

443

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

443

 

        Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

68

 

 

 

-

 

 

 

-

 

 

 

68

 

Total Construction and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  land  development

 

$41,171

 

 

 

29,503

 

 

 

34,495

 

 

 

7,279

 

 

 

5,792

 

 

 

4,088

 

 

 

-

 

 

 

-

 

 

 

122,328

 

Single family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$22,169

 

 

 

35,865

 

 

 

73,663

 

 

 

43,900

 

 

 

22,363

 

 

 

66,074

 

 

 

113,067

 

 

 

-

 

 

 

377,101

 

        Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,469

 

 

 

993

 

 

 

-

 

 

 

2,462

 

        Substandard

 

 

-

 

 

 

31

 

 

 

1,000

 

 

 

-

 

 

 

124

 

 

 

3,467

 

 

 

324

 

 

 

-

 

 

 

4,946

 

Total single family

 

$22,169

 

 

 

35,896

 

 

 

74,663

 

 

 

43,900

 

 

 

22,487

 

 

 

71,010

 

 

 

114,384

 

 

 

-

 

 

 

384,509

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$56,411

 

 

 

46,589

 

 

 

135,881

 

 

 

71,066

 

 

 

58,223

 

 

 

97,122

 

 

 

2,296

 

 

 

-

 

 

 

467,588

 

        Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

87

 

 

 

2,943

 

 

 

-

 

 

 

-

 

 

 

3,030

 

        Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

400

 

 

 

426

 

 

 

-

 

 

 

-

 

 

 

826

 

Total commercial

 

$56,411

 

 

 

46,589

 

 

 

135,881

 

 

 

71,066

 

 

 

58,710

 

 

 

100,491

 

 

 

2,296

 

 

 

-

 

 

 

471,444

 

Multifamily and farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$998

 

 

 

8,455

 

 

 

20,786

 

 

 

20,638

 

 

 

6,055

 

 

 

12,186

 

 

 

443

 

 

 

-

 

 

 

69,561

 

        Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

43

 

 

 

-

 

 

 

-

 

 

 

43

 

        Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

67

 

 

 

-

 

 

 

-

 

 

 

67

 

Total multifamily and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  farmland

 

$998

 

 

 

8,455

 

 

 

20,786

 

 

 

20,638

 

 

 

6,055

 

 

 

12,296

 

 

 

443

 

 

 

-

 

 

 

69,671

 

Total real estate loans

 

$120,749

 

 

 

120,443

 

 

 

265,825

 

 

 

142,883

 

 

 

93,044

 

 

 

187,885

 

 

 

117,123

 

 

 

-

 

 

 

1,047,952

 

Loans not secured by real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$9,153

 

 

 

11,335

 

 

 

6,045

 

 

 

3,107

 

 

 

1,707

 

 

 

11,864

 

 

 

20,032

 

 

 

-

 

 

 

63,243

 

        Watch

 

 

-

 

 

 

-

 

 

 

136

 

 

 

19

 

 

 

23

 

 

 

167

 

 

 

1

 

 

 

-

 

 

 

346

 

        Substandard

 

 

-

 

 

 

25

 

 

 

223

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

248

 

Total Commercial

 

$9,153

 

 

 

11,360

 

 

 

6,404

 

 

 

3,126

 

 

 

1,730

 

 

 

12,031

 

 

 

20,033

 

 

 

-

 

 

 

63,837

 

Farm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$53

 

 

 

195

 

 

 

17

 

 

 

50

 

 

 

-

 

 

 

-

 

 

 

86

 

 

 

-

 

 

 

401

 

        Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

        Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total farm

 

$53

 

 

 

195

 

 

 

17

 

 

 

50

 

 

 

-

 

 

 

-

 

 

 

86

 

 

 

-

 

 

 

401

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$1,777

 

 

 

1,232

 

 

 

666

 

 

 

176

 

 

 

99

 

 

 

64

 

 

 

2,397

 

 

 

-

 

 

 

6,411

 

        Watch

 

 

-

 

 

 

-

 

 

 

53

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

53

 

        Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

 

3

 

 

 

-

 

 

 

11

 

Total consumer

 

$1,777

 

 

 

1,232

 

 

 

719

 

 

 

176

 

 

 

99

 

 

 

72

 

 

 

2,400

 

 

 

-

 

 

 

6,475

 

All other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Pass

 

$972

 

 

 

-

 

 

 

10,002

 

 

 

376

 

 

 

217

 

 

 

2,878

 

 

 

5,164

 

 

 

-

 

 

 

19,609

 

        Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

130

 

 

 

-

 

 

 

-

 

 

 

130

 

        Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total all other

 

$972

 

 

 

-

 

 

 

10,002

 

 

 

376

 

 

 

217

 

 

 

3,008

 

 

 

5,164

 

 

 

-

 

 

 

19,739

 

Total loans not secured

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   by real estate

 

$11,955

 

 

 

12,787

 

 

 

17,142

 

 

 

3,728

 

 

 

2,046

 

 

 

15,111

 

 

 

27,683

 

 

 

-

 

 

 

90,452

 

Total loans

 

$132,704

 

 

 

133,230

 

 

 

282,967

 

 

 

146,611

 

 

 

95,090

 

 

 

202,996

 

 

 

144,806

 

 

 

-

 

 

 

1,138,404

 

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs during the year ended December 31, 2024.

 

December 31, 2024

 

Gross Loan Charge-offs by Origination Year

 

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

Converted to

 

 

Total

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Loans

 

 

Term Loans

 

 

Loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Single-family residential

 

 

-

 

 

 

-

 

 

 

126

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

131

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

-

 

 

 

-

 

 

 

126

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

131

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

447

 

 

 

397

 

 

 

74

 

 

 

179

 

 

 

37

 

 

 

-

 

 

 

-

 

 

 

1,134

 

Consumer

 

 

5

 

 

 

37

 

 

 

9

 

 

 

-

 

 

 

1

 

 

 

557

 

 

 

-

 

 

 

-

 

 

 

609

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

107

 

 

 

-

 

 

 

-

 

 

 

107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross charge-offs

 

$5

 

 

 

484

 

 

 

532

 

 

 

74

 

 

 

180

 

 

 

706

 

 

 

-

 

 

 

-

 

 

 

1,981