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Loans
 9 Months Ended
Sep. 30, 2025
Loans  
Loans

(5) Loans

 

Major classifications of loans at September 30, 2025 and December 31, 2024 are summarized as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

September 30, 2025

 

 

December 31, 2024

 

Real estate loans:

 

 

 

 

 

 

Construction and land development

 

$129,209

 

 

 

122,328

 

Single-family residential

 

 

400,900

 

 

 

384,509

 

Commercial

 

 

505,156

 

 

 

471,444

 

Multifamily and farmland

 

 

70,590

 

 

 

69,671

 

Total real estate loans

 

 

1,105,855

 

 

 

1,047,952

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

Commercial

 

 

59,758

 

 

 

63,837

 

Farm

 

 

525

 

 

 

401

 

Consumer

 

 

6,441

 

 

 

6,475

 

All other

 

 

10,863

 

 

 

19,739

 

 

 

 

 

 

 

 

 

 

Total loans

 

 

1,183,442

 

 

 

1,138,404

 

 

 

 

 

 

 

 

 

 

Less allowance for credit losses

 

 

(10,206)

 

 

(9,995)

 

 

 

 

 

 

 

 

 

Total net loans

 

$1,173,236

 

 

 

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 September 30, 2025 and December 31, 2024:

 

September 30, 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

 

$-

 

 

 

193

 

 

 

193

 

 

 

129,016

 

 

 

129,209

 

 

 

-

 

Single-family residential

 

 

1,196

 

 

 

4,026

 

 

 

5,222

 

 

 

395,678

 

 

 

400,900

 

 

 

-

 

Commercial

 

 

-

 

 

 

894

 

 

 

894

 

 

 

504,262

 

 

 

505,156

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

70,590

 

 

 

70,590

 

 

 

-

 

Total real estate loans

 

 

1,196

 

 

 

5,113

 

 

 

6,309

 

 

 

1,099,546

 

 

 

1,105,855

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

19

 

 

 

-

 

 

 

19

 

 

 

59,739

 

 

 

59,758

 

 

 

-

 

Farm

 

 

-

 

 

 

-

 

 

 

-

 

 

 

525

 

 

 

525

 

 

 

-

 

Consumer

 

 

6

 

 

 

-

 

 

 

6

 

 

 

6,435

 

 

 

6,441

 

 

 

-

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,863

 

 

 

10,863

 

 

 

-

 

Total loans

 

$1,221

 

 

 

5,113

 

 

 

6,334

 

 

 

1,177,108

 

 

 

1,183,442

 

 

 

-

 

 

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 September 30, 2025 and December 31, 2024:

 

 

 

September 30, 2025

 

 

 

 Nonaccrual Loans

 

 

 Nonaccrual Loans

 

 

 Total

 

 

 

 With No

 

 

 With

 

 

 Nonaccrual 

 

(Dollars in thousands)

 

Allowance

 

 

Allowance

 

 

 Loans

 

Real estate loans:

 

 

 

 

 

 

 

 

 

Construction and land development

 

$-

 

 

 

193

 

 

 

193

 

Single-family residential

 

 

610

 

 

 

3,416

 

 

 

4,026

 

Commercial

 

 

402

 

 

 

492

 

 

 

894

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

1,012

 

 

 

4,101

 

 

 

5,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

Consumer

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$1,012

 

 

 

4,101

 

 

 

5,113

 

 

 

 

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 nine months ended September 30, 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 $1.5 million and $1.6 million at September 30, 2025 and December 31, 2024, respectively.  Non-accrual loans evaluated collectively as a pool totaled $3.6 million and $2.8 million at September 30, 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 September 30, 2025 and December 31, 2024.

 

 

 

September 30, 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

 

$193

 

 

 

5

 

 

 

37

 

 

 

-

 

Single-family residential

 

 

4,026

 

 

 

30

 

 

 

3,720

 

 

 

-

 

Commercial

 

 

894

 

 

 

71

 

 

 

426

 

 

 

-

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

5,113

 

 

 

106

 

 

 

4,183

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

-

 

 

 

248

 

 

 

-

 

Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$5,113

 

 

 

106

 

 

 

4,431

 

 

 

-

 

 

The following tables provide a breakdown of collateral dependent loans by collateral type and collateral coverage at September 30, 2025 and 2024.  These tables also show non-accrual loans not considered to be collateral dependent at September 30, 2025 and December 31, 2024.

 

 

 

September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Financial Assets

 

 

 

 

(Dollars in thousands)

 

 Residential 

 

 

 Developed 

 

 

 Commercial

 

 

 Business 

 

 

 Not Considered

 

 

 

 

 

 

Property

 

 

Land

 

 

Property

 

 

Assets

 

 

 Collateral Dependent

 

 

 Total

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$61

 

 

 

132

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

193

 

Single-family residential

 

 

4,026

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,026

 

Commercial

 

 

-

 

 

 

-

 

 

 

894

 

 

 

-

 

 

 

-

 

 

 

894

 

Multifamily and farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total real estate loans

 

 

4,087

 

 

 

132

 

 

 

894

 

 

 

-

 

 

 

-

 

 

 

5,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans not secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$4,087

 

 

 

132

 

 

 

894

 

 

 

-

 

 

 

-

 

 

 

5,113

 

Collateral Value

 

$13,127

 

 

 

158

 

 

 

1,319

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Financial Assets

 

 

 

 

(Dollars in thousands)

 

 Residential 

 

 

 Developed 

 

 

 Commercial

 

 

 Business 

 

 

 Not Considered

 

 

 

 

 

 

Property

 

 

Land

 

 

Property

 

 

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 September 30, 2025.  The following table shows the amortized cost basis at September 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the three months ended September 30, 2024, disaggregated by loan class and type of concession granted. 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis at September 30, 2024

 

 

% of Loan Class

 

 

Modification Type

 

Financial Effect

 

Loan class:

 

 

 

 

 

 

 

 

 

 

 

Single-family residential

 

$30

 

 

 

0.01%

 

Interest rate reduction

 

HELOC converted to amortizing term loan

 

Total

 

$30

 

 

 

 

 

 

 

 

 

 

 

No loans to borrowers experiencing financial difficulty were modified during the nine months ended September 30, 2025.  The following table shows the amortized cost basis at September 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2024, disaggregated by loan class and type of concession granted. 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis at September 30, 2024

 

 

% of Loan Class

 

 

Modification Type

 

Financial Effect

 

Loan class:

 

 

 

 

 

 

 

 

 

 

 

Single-family residential

 

$230

 

 

 

0.06%

 

Interest rate reduction and term extension

 

Adjustable rate loan converted to fixed rate loan and HELOC converted to amortizing term loan

 

Commercial not secured by real estate

 

 

71

 

 

 

0.11%

 

Term extension

 

Line of credit converted to amortizing term loan

 

Total

 

$301

 

 

 

 

 

 

 

 

 

 

 

 

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 nine months ended September 30, 2024.

 

September 30, 2024

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 Payment Status (Amortized Cost Basis)

 

 

 

Current

 

 

30 - 89 Days Past Due

 

 

90 + Days Past Due

 

Loan type:

 

 

 

 

 

 

 

 

 

Single-family residential

 

$230

 

 

 

 

 

 

 

Commercial not secured by real estate

 

 

71

 

 

 

-

 

 

 

-

 

Total

 

$301

 

 

 

-

 

 

 

-

 

 

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 and nine months ended September 30, 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 September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,276

 

 

 

3,416

 

 

 

2,284

 

 

 

231

 

 

 

406

 

 

 

1

 

 

 

178

 

 

 

9,792

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(128)

 

 

-

 

 

 

(121)

 

 

(249)

Recoveries

 

 

-

 

 

 

9

 

 

 

-

 

 

 

-

 

 

 

15

 

 

 

-

 

 

 

27

 

 

 

51

 

Provision (recovery) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan losses (1)

 

 

179

 

 

 

94

 

 

 

123

 

 

 

(9)

 

 

130

 

 

 

-

 

 

 

95

 

 

 

612

 

Ending balance

 

$3,455

 

 

 

3,519

 

 

 

2,407

 

 

 

222

 

 

 

423

 

 

 

1

 

 

 

179

 

 

 

10,206

 

Allowance for credit loss-loans

 

$3,455

 

 

 

3,519

 

 

 

2,407

 

 

 

222

 

 

 

423

 

 

 

1

 

 

 

179

 

 

 

10,206

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan commitments

 

 

1,139

 

 

 

7

 

 

 

11

 

 

 

-

 

 

 

17

 

 

 

-

 

 

 

2

 

 

 

1,176

 

Total allowance for credit losses

 

$4,594

 

 

 

3,526

 

 

 

2,418

 

 

 

222

 

 

 

440

 

 

 

1

 

 

 

181

 

 

 

11,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,385

 

 

 

3,386

 

 

 

2,322

 

 

 

246

 

 

 

446

 

 

 

1

 

 

 

209

 

 

 

9,995

 

Charge-offs

 

 

-

 

 

 

(5)

 

 

-

 

 

 

-

 

 

 

(164)

 

 

-

 

 

 

(364)

 

 

(533)

Recoveries

 

 

-

 

 

 

53

 

 

 

-

 

 

 

-

 

 

 

45

 

 

 

-

 

 

 

136

 

 

 

234

 

Provision (recovery) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan losses (1)

 

 

70

 

 

 

85

 

 

 

85

 

 

 

(24)

 

 

96

 

 

 

-

 

 

 

198

 

 

 

510

 

Ending balance

 

$3,455

 

 

 

3,519

 

 

 

2,407

 

 

 

222

 

 

 

423

 

 

 

1

 

 

 

179

 

 

 

10,206

 

Allowance for credit loss-loans

 

$3,455

 

 

 

3,519

 

 

 

2,407

 

 

 

222

 

 

 

423

 

 

 

1

 

 

 

179

 

 

 

10,206

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan commitments

 

 

1,139

 

 

 

7

 

 

 

11

 

 

 

-

 

 

 

17

 

 

 

-

 

 

 

2

 

 

 

1,176

 

Total allowance for credit losses

 

$4,594

 

 

 

3,526

 

 

 

2,418

 

 

 

222

 

 

 

440

 

 

 

1

 

 

 

181

 

 

 

11,382

 

 

(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 September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,318

 

 

 

3,484

 

 

 

2,374

 

 

 

271

 

 

 

368

 

 

 

1

 

 

 

200

 

 

 

10,016

 

Charge-offs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(50)

 

 

-

 

 

 

(157)

 

 

(207)

Recoveries

 

 

-

 

 

 

29

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

-

 

 

 

69

 

 

 

104

 

Provision (recovery) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan losses (1)

 

 

245

 

 

 

(19)

 

 

179

 

 

 

63

 

 

 

130

 

 

 

-

 

 

 

105

 

 

 

703

 

Ending balance

 

$3,563

 

 

 

3,494

 

 

 

2,553

 

 

 

334

 

 

 

454

 

 

 

1

 

 

 

217

 

 

 

10,616

 

Allowance for credit loss-loans

 

$3,563

 

 

 

3,494

 

 

 

2,553

 

 

 

334

 

 

 

454

 

 

 

1

 

 

 

217

 

 

 

10,616

 

Allowance for credit losses -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan commitments

 

 

1,144

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

11

 

 

 

-

 

 

 

3

 

 

 

1,159

 

Total allowance for credit losses

 

$4,707

 

 

 

3,495

 

 

 

2,553

 

 

 

334

 

 

 

465

 

 

 

1

 

 

 

220

 

 

 

11,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,913

 

 

 

3,484

 

 

 

2,317

 

 

 

268

 

 

 

812

 

 

 

2

 

 

 

245

 

 

 

11,041

 

Charge-offs

 

 

-

 

 

 

(126)

 

 

-

 

 

 

-

 

 

 

(797)

 

 

-

 

 

 

(513)

 

 

(1,436)

Recoveries

 

 

-

 

 

 

99

 

 

 

202

 

 

 

-

 

 

 

45

 

 

 

-

 

 

 

134

 

 

 

480

 

Provision (recovery) for

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan losses (1)

 

 

(350)

 

 

37

 

 

 

34

 

 

 

66

 

 

 

394

 

 

 

(1)

 

 

351

 

 

 

531

 

Ending balance

 

$3,563

 

 

 

3,494

 

 

 

2,553

 

 

 

334

 

 

 

454

 

 

 

1

 

 

 

217

 

 

 

10,616

 

Allowance for credit loss-loans

 

$3,563

 

 

 

3,494

 

 

 

2,553

 

 

 

334

 

 

 

454

 

 

 

1

 

 

 

217

 

 

 

10,616

 

Allowance for credit losses -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loan commitments

 

 

1,144

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

11

 

 

 

-

 

 

 

3

 

 

 

1,159

 

Total allowance for credit losses

 

$4,707

 

 

 

3,495

 

 

 

2,553

 

 

 

334

 

 

 

465

 

 

 

1

 

 

 

220

 

 

 

11,775

 

 

(1) Excludes provision for credit losses related to unfunded commitments. Note 7,"Commitments and Contingencies" in the 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 September 30, 2025.

 

 

 

Term Loans by Origination Year

 

 

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

Converted to

 

 

Total

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Loans

 

 

Term Loans

 

 

Loans

 

September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$39,728

 

 

 

30,001

 

 

 

21,571

 

 

 

19,865

 

 

 

4,727

 

 

 

7,675

 

 

 

-

 

 

 

4,957

 

 

 

128,524

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

437

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

437

 

Substandard

 

 

-

 

 

 

-

 

 

 

193

 

 

 

-

 

 

 

-

 

 

 

55

 

 

 

-

 

 

 

-

 

 

 

248

 

Total Construction and land development

 

$39,728

 

 

 

30,001

 

 

 

21,764

 

 

 

19,865

 

 

 

5,164

 

 

 

7,730

 

 

 

-

 

 

 

4,957

 

 

 

129,209

 

Single family

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$26,539

 

 

 

25,540

 

 

 

35,035

 

 

 

68,913

 

 

 

41,124

 

 

 

76,687

 

 

 

120,632

 

 

 

-

 

 

 

394,470

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,573

 

 

 

-

 

 

 

-

 

 

 

1,573

 

Substandard

 

 

-

 

 

 

-

 

 

 

29

 

 

 

610

 

 

 

93

 

 

 

3,354

 

 

 

771

 

 

 

-

 

 

 

4,857

 

Total single family

 

$26,539

 

 

 

25,540

 

 

 

35,064

 

 

 

69,523

 

 

 

41,217

 

 

 

81,614

 

 

 

121,403

 

 

 

-

 

 

 

400,900

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$50,597

 

 

 

63,193

 

 

 

44,899

 

 

 

137,023

 

 

 

66,844

 

 

 

136,336

 

 

 

2,801

 

 

 

-

 

 

 

501,693

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,569

 

 

 

-

 

 

 

-

 

 

 

2,569

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

446

 

 

 

46

 

 

 

402

 

 

 

-

 

 

 

-

 

 

 

894

 

Total commercial

 

$50,597

 

 

 

63,193

 

 

 

44,899

 

 

 

137,469

 

 

 

66,890

 

 

 

139,307

 

 

 

2,801

 

 

 

-

 

 

 

505,156

 

Multifamily and farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$7,420

 

 

 

976

 

 

 

8,022

 

 

 

20,077

 

 

 

20,066

 

 

 

13,894

 

 

 

96

 

 

 

-

 

 

 

70,551

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

39

 

 

 

-

 

 

 

-

 

 

 

39

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total multifamily and farmland

 

$7,420

 

 

 

976

 

 

 

8,022

 

 

 

20,077

 

 

 

20,066

 

 

 

13,933

 

 

 

96

 

 

 

-

 

 

 

70,590

 

Total real estate loans

 

$124,284

 

 

 

119,710

 

 

 

109,749

 

 

 

246,934

 

 

 

133,337

 

 

 

242,584

 

 

 

124,300

 

 

 

4,957

 

 

 

1,105,855

 

Loans not secured by real estate Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$8,265

 

 

 

7,021

 

 

 

11,135

 

 

 

3,706

 

 

 

1,881

 

 

 

10,312

 

 

 

17,217

 

 

 

-

 

 

 

59,537

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

130

 

 

 

16

 

 

 

75

 

 

 

-

 

 

 

-

 

 

 

221

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Commercial

 

$8,265

 

 

 

7,021

 

 

 

11,135

 

 

 

3,836

 

 

 

1,897

 

 

 

10,387

 

 

 

17,217

 

 

 

-

 

 

 

59,758

 

Farm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$100

 

 

 

43

 

 

 

158

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

219

 

 

 

-

 

 

 

525

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total farm

 

$100

 

 

 

43

 

 

 

158

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

219

 

 

 

-

 

 

 

525

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$1,786

 

 

 

1,025

 

 

 

726

 

 

 

432

 

 

 

92

 

 

 

88

 

 

 

2,274

 

 

 

-

 

 

 

6,423

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total consumer

 

$1,786

 

 

 

1,025

 

 

 

726

 

 

 

450

 

 

 

92

 

 

 

88

 

 

 

2,274

 

 

 

-

 

 

 

6,441

 

All other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$1,159

 

 

 

442

 

 

 

47

 

 

 

6,103

 

 

 

300

 

 

 

2,699

 

 

 

113

 

 

 

-

 

 

 

10,863

 

Watch

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total all other

 

$1,159

 

 

 

442

 

 

 

47

 

 

 

6,103

 

 

 

300

 

 

 

2,699

 

 

 

113

 

 

 

-

 

 

 

10,863

 

Total loans not secured by real estate

 

$11,310

 

 

 

8,531

 

 

 

12,066

 

 

 

10,394

 

 

 

2,289

 

 

 

13,174

 

 

 

19,823

 

 

 

-

 

 

 

77,587

 

Total loans

 

$135,594

 

 

 

128,241

 

 

 

121,815

 

 

 

257,328

 

 

 

135,626

 

 

 

255,758

 

 

 

144,123

 

 

 

4,957

 

 

 

1,183,442

 

 

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs for the nine months ended September 30, 2025.

 

September 30, 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

 

 

-

 

 

 

-

 

 

 

27

 

 

 

39

 

 

 

9

 

 

 

89

 

 

 

-

 

 

 

-

 

 

 

164

 

Consumer

 

 

-

 

 

 

6

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

355

 

 

 

-

 

 

 

-

 

 

 

364

 

All other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross charge-offs

 

$-

 

 

 

6

 

 

 

27

 

 

 

42

 

 

 

9

 

 

 

444

 

 

 

5

 

 

 

-

 

 

 

533

 

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