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Note 4 - Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2024

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(4)	LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans at December 31, 2024 and 2023 consisted of the following:

	December 31,			December 31,
(In thousands)	2024			2023


1-4 Family Residential Mortgage	$	138,936		$	133,480
Home Equity and Second Mortgage		66,549			62,070
Multifamily Residential		36,822			39,963
1-4 Family Residential Construction		15,245			15,667
Other Construction, Development and Land		75,840			76,713
Commercial Real Estate		184,851			168,757
Commercial Business		62,727			68,223
Consumer and Other		58,406			56,373
Principal loan balance		639,376			621,246

Deferred loan origination fees and costs, net		1,104			1,168
Allowance for credit losses		(9,281	)		(8,005	)

Loans, net	$	631,199		$	614,409

The Bank has entered into loan transactions with certain directors, officers and their affiliates (i.e., related parties).

The following table represents the aggregate activity for related party loans during the years ended December 31, 2024 and 2023. Adjustments are made to reflect new directors and officers added during the year, as well as directors and officers that left the Company during the year.

(In thousands)	2024			2023

Beginning balance	$	5,877		$	6,279
Adjustments due to officer and director changes		29			(14	)
New loans		1,100			837
Payments		(1,697	)		(1,225	)

Ending balance	$	5,309		$	5,877

Off-balance-sheet commitments (including commitments to make loans, unused lines of credit and letters of credit) to related parties at December 31, 2024 and 2023 were $2.1 million and $2.6 million, respectively.

The following table provides the components of the Company’s amortized cost basis in loans at December 31, 2024:

										Other
	1-4 Family		Home Equity					1-4 Family		Construction,
	Residential		and Second		Multifamily			Residential		Development			Commercial			Commercial			Consumer
	Mortgage		Mortgage		Residential			Construction		and Land			Real Estate			Business			and Other		Total
	(In thousands)
Amortized Cost Basis in Loans:
Principal loan balance	$	138,936	$	66,549	$	36,822		$	15,245	$	75,840		$	184,851		$	62,727		$	58,406	$	639,376

Net deferred loan origination fees and costs		98		1,206		(17	)		-		(29	)		(145	)		(9	)		-		1,104

Amortized cost basis in loans	$	139,034	$	67,755	$	36,805		$	15,245	$	75,811		$	184,706		$	62,718		$	58,406	$	640,480

The following table provides the components of the Company’s amortized cost basis in loans at December 31, 2023:

										Other
	1-4 Family		Home Equity					1-4 Family		Construction,
	Residential		and Second		Multifamily			Residential		Development			Commercial			Commercial			Consumer
	Mortgage		Mortgage		Residential			Construction		and Land			Real Estate			Business			and Other		Total
	(In thousands)
Amortized Cost Basis in Loans:
Principal loan balance	$	133,480	$	62,070	$	39,963		$	15,667	$	76,713		$	168,757		$	68,223		$	56,373	$	621,246

Net deferred loan origination fees and costs		121		1,231		(17	)		-		(44	)		(112	)		(11	)		-		1,168

Amortized cost basis in loans	$	133,601	$	63,301	$	39,946		$	15,667	$	76,669		$	168,645		$	68,212		$	56,373	$	622,414

The following table presents the activity in the ACL on loans by class of loan for the year ended December 31, 2024:

											Other
	1-4 Family			Home Equity				1-4 Family			Construction,
	Residential			and Second		Multifamily		Residential			Development			Commercial		Commercial		Consumer
	Mortgage			Mortgage		Residential		Construction			and Land			Real Estate		Business		and Other			Total
	(In thousands)
ACL on Loans:


Beginning balance	$	1,490		$	406	$	332	$	208		$	804		$	2,119	$	1,431	$	1,215		$	8,005
Provision for credit losses		77			68		213		(24	)		(216	)		339		991		1			1,449
Charge-offs		(4	)		-		-		-			-			-		-		(345	)		(349	)
Recoveries		29			4		-		-			-			1		2		140			176

Ending balance	$	1,592		$	478	$	545	$	184		$	588		$	2,459	$	2,424	$	1,011		$	9,281

The following table presents the activity in the ACL on loans by class of loan for the year ended December 31, 2023:

													Other
	1-4 Family			Home Equity						1-4 Family			Construction,
	Residential			and Second			Multifamily			Residential			Development		Commercial			Commercial			Consumer
	Mortgage			Mortgage			Residential			Construction			and Land		Real Estate			Business			and Other			Total
	(In thousands)
ACL on Loans:

Beginning balance, prior to adoption of ASC 326	$	1,036		$	531		$	346		$	206		$	587	$	2,029		$	1,156		$	881		$	6,772
Impact of adopting ASC 326		423			(26	)		(3	)		(9	)		13		(130	)		(142	)		435			561
Provision for credit losses		41			(86	)		(11	)		11			204		220			613			149			1,141
Charge-offs		(31	)		(15	)		-			-			-		-			(205	)		(430	)		(681	)
Recoveries		21			2			-			-			-		-			9			180			212

Ending balance	$	1,490		$	406		$	332		$	208		$	804	$	2,119		$	1,431		$	1,215		$	8,005

There have been no significant changes to the types of collateral securing the Company’s collateral dependent loans. The following table presents the amortized cost basis of, and ACL allocation to, individually evaluated collateral-dependent loans by class of loans as of December 31, 2024:

	Real								ACL
	Estate		Equipment		Other		Total		Allocation
	(In thousands)

1-4 Family Residential Mortgage	$	1,613	$	-	$	-	$	1,613	$	-
Home Equity and Second Mortgage		714		-		-		714		-
Multifamily Residential		-		-		-		-		-
1-4 Family Residential Construction		90		-		-		90		54
Other Construction, Development and Land		106		-		-		106		-
Commercial Real Estate		3,912		-		-		3,912		-
Commercial Business		-		1,926		155		2,081		1,233
Consumer and Other		-		-		-		-		-
	$	6,435	$	1,926	$	155	$	8,516	$	1,287

The following table presents the amortized cost basis of, and ACL allocation to, individually evaluated collateral-dependent loans by class of loans as of December 31, 2023:

	Real								ACL
	Estate		Equipment		Other		Total		Allocation
	(In thousands)

1-4 Family Residential Mortgage	$	1,651	$	-	$	-	$	1,651	$	9
Home Equity and Second Mortgage		548		-		-		548		-
Multifamily Residential		-		-		-		-		-
1-4 Family Residential Construction		87		-		-		87		60
Other Construction, Development and Land		54		-		-		54		-
Commercial Real Estate		1,055		-		-		1,055		-
Commercial Business		-		-		38		38		-
Consumer and Other		-		-		-		-		-
	$	3,395	$	-	$	38	$	3,433	$	69

Nonperforming loans consists of nonaccrual loans and loans past due and still accruing interest. The following table presents the amortized cost basis of loans on nonaccrual status and loans 90 days or more past due still accruing as of December 31, 2024:

							Loans 90+ Days		Total
	Nonaccrual Loans		Nonaccrual Loans		Total		Past Due		Nonperforming
	with No ACL		with An ACL		Nonaccrual		Still Accruing		Loans
	(In thousands)

1-4 Family Residential Mortgage	$	1,186	$	-	$	1,186	$	-	$	1,186
Home Equity and Second Mortgage		568		-		568		-		568
Multifamily Residential		-		-		-		-		-
1-4 Family Residential Construction		-		90		90		-		90
Other Construction, Development and Land		59		-		59		-		59
Commercial Real Estate		413		-		413		-		413
Commercial Business		99		1,967		2,066		-		2,066
Consumer and Other		-		-		-		-		-

Total	$	2,325	$	2,057	$	4,382	$	-	$	4,382

The following table presents the amortized cost basis of loans on nonaccrual status and loans 90 days or more past due still accruing as of December 31, 2023:

							Loans 90+ Days		Total
	Nonaccrual Loans		Nonaccrual Loans		Total		Past Due		Nonperforming
	with No ACL		with An ACL		Nonaccrual		Still Accruing		Loans
	(In thousands)

1-4 Family Residential Mortgage	$	1,120	$	36	$	1,156	$	-	$	1,156
Home Equity and Second Mortgage		454		-		454		-		454
Multifamily Residential		-		-		-		-		-
1-4 Family Residential Construction		-		87		87		-		87
Other Construction, Development and Land		54		-		54		-		54
Commercial Real Estate		-		-		-		-		-
Commercial Business		-		-		-		-		-
Consumer and Other		-		-		-		-		-

Total	$	1,628	$	123	$	1,751	$	-	$	1,751

No interest income was recognized on nonaccrual loans during the years ended December 31, 2024 and 2023.

The following table presents the aging of the amortized cost basis in loans at December 31, 2024:

	30-59 Days		60-89 Days		90 Days or More		Total				Total
	Past Due		Past Due		Past Due		Past Due		Current		Loans
	(In thousands)

1-4 Family Residential Mortgage	$	1,758	$	205	$	828	$	2,791	$	136,243	$	139,034
Home Equity and Second Mortgage		269		202		148		619		67,136		67,755
Multifamily Residential		-		-		-		-		36,805		36,805
1-4 Family Residential Construction		-		-		90		90		15,155		15,245
Other Construction, Development and Land		98		25		59		182		75,629		75,811
Commercial Real Estate		252		1,027		413		1,692		183,014		184,706
Commercial Business		80		25		140		245		62,473		62,718
Consumer and Other		472		54		-		526		57,880		58,406

Total	$	2,929	$	1,538	$	1,678	$	6,145	$	634,335	$	640,480

The following table presents the aging of the amortized cost basis in loans at December 31, 2023:

	30-59 Days		60-89 Days		90 Days or More		Total				Total
	Past Due		Past Due		Past Due		Past Due		Current		Loans
	(In thousands)

1-4 Family Residential Mortgage	$	2,104	$	335	$	482	$	2,921	$	130,680	$	133,601
Home Equity and Second Mortgage		396		70		-		466		62,835		63,301
Multifamily Residential		-		-		-		-		39,946		39,946
1-4 Family Residential Construction		-		-		-		-		15,667		15,667
Other Construction, Development and Land		162		-		54		216		76,453		76,669
Commercial Real Estate		834		-		-		834		167,811		168,645
Commercial Business		-		-		-		-		68,212		68,212
Consumer and Other		302		51		-		353		56,020		56,373

Total	$	3,798	$	456	$	536	$	4,790	$	617,624	$	622,414

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, a term extension, an other-than-insignificant payment delay or an interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL on loans. In some cases, the Company may provide multiple types of concessions on one loan. 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.

During the year ended December 31, 2024, the Company modified Commercial Business loans with an amortized cost basis of $2.0 million, or approximately 3% of the amortized cost of all Commercial Business loans, for which the borrowers were experiencing financial distress. The modifications for each loan were the modification of principal and interest payments for 12 months. No principal was forgiven, no payments were delayed, and no interest rates were reduced for the modified loans. All modifications occurred for one borrowing relationship only. The Company monitors the performance of modified loans and none of the modified loans were delinquent at December 31, 2024. There were no modifications to borrowers in financial distress during the year ended December 31, 2023. There were no loans to borrowers experiencing financial distress that were modified during the previous 12 months and which subsequently defaulted during the years ended December 31, 2024 and 2023. There were no unfunded commitments associated with loans modified for borrowers experiencing financial distress as of December 31, 2024 or 2023.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The Company does not consider modified loans (or potion of a modified loan) uncollectible as of December 31, 2024 or 2023.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, public information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with 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 as loss are considered uncollectible and of such little value that their continuance on the institution’s books as an asset is not warranted.

Loans not meeting the criteria above that are analyzed individually as part of the described process are considered to be pass rated loans.

Based on the most recent analysis performed, the risk category of loans by class of loans as of December 31, 2024 and gross write-offs for the year then ended are as follows:

	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(In thousands)
1-4 Family Residential Mortgage
Pass	$	22,095	$	31,871	$	26,756	$	23,181	$	5,824	$	27,218	$	-	$	136,945
Special Mention		-		31		-		-		-		445		-		476
Substandard		-		-		-		-		-		427		-		427
Doubtful		-		-		41		154		73		918		-		1,186
	$	22,095	$	31,902	$	26,797	$	23,335	$	5,897	$	29,008	$	-	$	139,034

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	4	$	-	$	4

Home Equity and Second Mortgage
Pass	$	2,014	$	3,962	$	3,617	$	353	$	182	$	242	$	56,590	$	66,960
Special Mention		-		-		-		-		-		-		80		80
Substandard		-		-		-		-		-		-		147		147
Doubtful		-		-		-		-		-		568		-		568
	$	2,014	$	3,962	$	3,617	$	353	$	182	$	810	$	56,817	$	67,755

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multifamily Residential
Pass	$	964	$	3,534	$	11,820	$	8,505	$	7,663	$	4,319	$	-	$	36,805
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
	$	964	$	3,534	$	11,820	$	8,505	$	7,663	$	4,319	$	-	$	36,805

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

1-4 Family Residential Construction
Pass	$	12,186	$	1,498	$	642	$	-	$	829	$	-	$	-	$	15,155
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		90		-		-		-		90
	$	12,186	$	1,498	$	642	$	90	$	829	$	-	$	-	$	15,245

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(In thousands)
Other Construction, Development and Land
Pass	$	11,687	$	26,093	$	31,645	$	1,823	$	1,443	$	3,014	$	-	$	75,705
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		47		-		47
Doubtful		-		-		-		-		-		59		-		59
	$	11,687	$	26,093	$	31,645	$	1,823	$	1,443	$	3,120	$	-	$	75,811

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial Real Estate
Pass	$	22,024	$	20,478	$	41,583	$	26,748	$	19,760	$	44,237	$	2,129	$	176,959
Special Mention		-		511		3,032		-		-		292		-		3,835
Substandard		311		716		-		557		211		1,704		-		3,499
Doubtful		-		-		-		-		-		413		-		413
	$	22,335	$	21,705	$	44,615	$	27,305	$	19,971	$	46,646	$	2,129	$	184,706

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial Business
Pass	$	8,414	$	10,636	$	9,590	$	8,699	$	4,750	$	4,543	$	12,895	$	59,527
Special Mention		486		149		130		126		15		-		162		1,068
Substandard		-		-		-		57		-		-		-		57
Doubtful		-		107		1,926		-		-		33		-		2,066
	$	8,900	$	10,892	$	11,646	$	8,882	$	4,765	$	4,576	$	13,057	$	62,718

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer and Other
Pass	$	18,932	$	16,555	$	8,274	$	3,574	$	810	$	7,554	$	2,577	$	58,276
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		130		130
Doubtful		-		-		-		-		-		-		-		-
	$	18,932	$	16,555	$	8,274	$	3,574	$	810	$	7,554	$	2,707	$	58,406

Current period gross write-offs	$	25	$	74	$	131	$	27	$	8	$	3	$	77	$	345

	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving		Total
	(In thousands)
Total Loans
Pass	$	98,316	$	114,627	$	133,927	$	72,883	$	41,261	$	91,127	$	74,191	$	626,332
Special Mention		486		691		3,162		126		15		737		242		5,459
Substandard		311		716		-		614		211		2,178		277		4,307
Doubtful		-		107		1,967		244		73		1,991		-		4,382
	$	99,113	$	116,141	$	139,056	$	73,867	$	41,560	$	96,033	$	74,710	$	640,480

Current period gross write-offs	$	25	$	74	$	131	$	27	$	8	$	7	$	77	$	349

Based on the most recent analysis performed, the risk category of loans by class of loans as of December 31, 2023 and gross write-offs for the year then ended are as follows:

	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
	(In thousands)
1-4 Family Residential Mortgage
Pass	$	34,344	$	31,551	$	25,846	$	6,913	$	9,525	$	23,628	$	-	$	131,807
Special Mention		-		-		-		-		-		144		-		144
Substandard		-		-		-		75		265		155		-		495
Doubtful		-		48		192		78		-		837		-		1,155
	$	34,344	$	31,599	$	26,038	$	7,066	$	9,790	$	24,764	$	-	$	133,601

Current period gross write-offs	$	-	$	-	$	2	$	-	$	-	$	29	$	-	$	31

Home Equity and Second Mortgage
Pass	$	5,267	$	4,380	$	529	$	232	$	163	$	327	$	51,794	$	62,692
Special Mention		-		-		-		-		-		-		61		61
Substandard		-		-		-		-		-		-		94		94
Doubtful		-		-		-		-		264		190		-		454
	$	5,267	$	4,380	$	529	$	232	$	427	$	517	$	51,949	$	63,301

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	15	$	15

	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
	(In thousands)
Multifamily Residential
Pass	$	3,374	$	10,495	$	9,534	$	7,943	$	4,137	$	4,463	$	-	$	39,946
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
	$	3,374	$	10,495	$	9,534	$	7,943	$	4,137	$	4,463	$	-	$	39,946

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

1-4 Family Residential Construction
Pass	$	9,193	$	4,180	$	831	$	1,119	$	-	$	257	$	-	$	15,580
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		87		-		-		-		-		87
	$	9,193	$	4,180	$	918	$	1,119	$	-	$	257	$	-	$	15,667

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other Construction, Development and Land
Pass	$	26,717	$	35,673	$	7,495	$	2,655	$	1,231	$	2,795	$	-	$	76,566
Special Mention		-		-		-		-		-		49		-		49
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		54		-		54
	$	26,717	$	35,673	$	7,495	$	2,655	$	1,231	$	2,898	$	-	$	76,669

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial Real Estate
Pass	$	14,818	$	40,675	$	29,656	$	19,589	$	18,231	$	38,818	$	1,755	$	163,542
Special Mention		823		-		573		1,622		417		62		550		4,047
Substandard		-		-		-		231		-		825		-		1,056
Doubtful		-		-		-		-		-		-		-		-
	$	15,641	$	40,675	$	30,229	$	21,442	$	18,648	$	39,705	$	2,305	$	168,645

Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
	(In thousands)
Commercial Business
Pass	$	14,717	$	12,603	$	11,049	$	5,706	$	5,312	$	3,646	$	12,384	$	65,417
Special Mention		208		2,097		106		48		160		-		138		2,757
Substandard		-		-		-		-		38		-		-		38
Doubtful		-		-		-		-		-		-		-		-
	$	14,925	$	14,700	$	11,155	$	5,754	$	5,510	$	3,646	$	12,522	$	68,212

Current period gross write-offs	$	-	$	155	$	2	$	26	$	-	$	6	$	16	$	205

Consumer and Other
Pass	$	23,335	$	13,906	$	7,662	$	2,604	$	846	$	5,446	$	2,484	$	56,283
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		90		90
Doubtful		-		-		-		-		-		-		-		-
	$	23,335	$	13,906	$	7,662	$	2,604	$	846	$	5,446	$	2,574	$	56,373

Current period gross write-offs	$	16	$	90	$	107	$	25	$	24	$	52	$	116	$	430

Total loans
Pass	$	131,765	$	153,463	$	92,602	$	46,761	$	39,445	$	79,380	$	68,417	$	611,833
Special Mention		1,031		2,097		679		1,670		577		255		749		7,058
Substandard		-		-		-		306		303		980		184		1,773
Doubtful		-		48		279		78		264		1,081		-		1,750
	$	132,796	$	155,608	$	93,560	$	48,815	$	40,589	$	81,696	$	69,350	$	622,414

Current period gross write-offs	$	16	$	245	$	111	$	51	$	24	$	87	$	147	$	681

Allowance for Loan Losses

Prior to the adoption of ASC 326 on January 1, 2023, the Company calculated the allowance for loan losses using the incurred loss methodology. The following tables are disclosures related to the allowance for loan losses in prior periods.

An analysis of the allowance for loan losses for the year ended December 31, 2022 is as follows:

													Home Equity
	Residential							Commercial		Commercial			and Second		Other
	Real Estate			Land		Construction		Real Estate		Business			Mortgage		Consumer			Total
	(In thousands)
Allowance for Loan Losses:

Beginning balance	$	1,174		$	234	$	403	$	1,884	$	873		$	527	$	988		$	6,083
Provisions		247			31		123		147		173			1		228			950
Charge-offs		(48	)		-		-		-		(9	)		-		(448	)		(505	)
Recoveries		10			-		-		-		9			2		223			244

Ending balance	$	1,383		$	265	$	526	$	2,031	$	1,046		$	530	$	991		$	6,772

The following table summarizes the Company’s impaired loans for the year ended December 31, 2022. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended December 31, 2022.

	Average		Interest
	Recorded		Income
	Investment		Recognized
	(In thousands)
Loans with no related allowance recorded:
Residential	$	893	$	12
Land		71		-
Construction		-		-
Commercial real estate		582		25
Commercial business		137		8
Home equity and second mortgage		155		-
Other consumer		-		-

	$	1,838	$	45

Loans with an allowance recorded:
Residential	$	11	$	-
Land		-		-
Construction		-		-
Commercial real estate		-		-
Commercial business		31		-
Home equity and second mortgage		172		-
Other consumer		-		-

	$	214	$	-

Total:
Residential	$	904	$	12
Land		71		-
Construction		-		-
Commercial real estate		582		25
Commercial business		168		8
Home equity and second mortgage		327		-
Other consumer		-		-

	$	2,052	$	45

There were no TDRs that were restructured during the year ended December 31, 2022. There were no principal charge-offs recorded as a result of TDRs during the year ended December 31, 2022.

The Company had no payment defaults (defined as the loan becoming more than 90 days past due, being moved to nonaccrual status, or the collateral being foreclosed upon) for TDRs modified within the previous 12 months during the year ended December 31, 2022. In the event that a TDR subsequently defaults, the Company evaluates the restructuring for possible impairment. As a result, the related allowance may be increased or charge-offs may be taken to reduce the carrying amount of the loan. The Company did not recognize any provisions for loan losses or net charge-offs as a result of defaulted TDRs for the year ended December 31, 2022.

ACL on Off-Balance-Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company recorded an ACL for unfunded commitments of $131,000 in conjunction with the Company’s adoption of ASU 2016-13 on January 1, 2023. The ACL for off-balance-sheet credit exposures is presented in accrued expenses and other liabilities on the consolidated balance sheets. Changes in the ACL for off-balance-sheet credit exposures are reflected in the provision for credit losses on the consolidated statements of income. There were no changes to the ACL for off-balance-sheet credit exposures during the years ended December 31, 2024 and 2023.