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Note 3 - Loans Receivable

12 Months Ended

Dec. 31, 2024

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

NOTE 3 – Loans Receivable

Year end loans are summarized below:

(Dollars in thousands)
	December 31, 2024			December 31, 2023
Loans secured by real estate:
Residential real estate	$	467,293		$	484,948
Home equity		49,758			46,599
Commercial real estate		551,674			503,202
Construction and land development		82,874			115,227
Multifamily		212,455			219,917
Total loans secured by real estate		1,364,054			1,369,893
Commercial business		104,246			97,386
Consumer		551			610
Manufactured homes		26,708			30,845
Government		11,024			10,021
Loans receivable		1,506,583			1,508,755
Add:
Net deferred loan origination costs		2,439			3,705
Loan clearing funds		(46	)		135
Loans receivable, net of deferred fees and costs	$	1,508,976		$	1,512,595

The Company's age analysis of past due loans is summarized below:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due and Accruing		Current		Accruing Loans		Non-accrual Loans		Total Loans Receivable
December 31, 2024
Residential real estate	$	4,423	$	1,184	$	-	$	5,607	$	457,021	$	462,628	$	4,665	$	467,293
Home equity		1,002		123		-		1,125		48,150		49,275		483		49,758
Commercial real estate		4,556		571		-		5,127		545,267		550,394		1,280		551,674
Construction and land development		2,039		-		-		2,039		80,177		82,216		658		82,874
Multifamily		1,961		359		-		2,320		206,773		209,093		3,362		212,455
Commercial business		493		508		-		1,001		99,955		100,956		3,290		104,246
Consumer		5		-		-		5		546		551		-		551
Manufactured homes		428		54		-		482		26,226		26,708		-		26,708
Government		-		-		-		-		11,024		11,024		-		11,024
Total	$	14,907	$	2,799	$	-	$	17,706	$	1,475,139	$	1,492,845	$	13,738	$	1,506,583

December 31, 2023
Residential real estate	$	5,857	$	4,362	$	1,131	$	11,350	$	471,905	$	483,255	$	1,693	$	484,948
Home equity		226		18		-		244		45,887		46,131		468		46,599
Commercial real estate		3,168		262		712		4,142		498,227		502,369		833		503,202
Construction and land development		2,523		-		-		2,523		112,704		115,227		-		115,227
Multifamily		5,333		-		-		5,333		210,869		216,202		3,715		219,917
Commercial business		105		29		-		134		94,355		94,489		2,897		97,386
Consumer		12		-		-		12		596		608		2		610
Manufactured homes		634		379		-		1,013		29,832		30,845		-		30,845
Government		-		-		-		-		10,021		10,021		-		10,021
Total	$	17,858	$	5,050	$	1,843	$	24,751	$	1,474,396	$	1,499,147	$	9,608	$	1,508,755

The following table shows the amortized cost of loans, segregated by portfolio segment, credit quality rating and year of origination as of December 31, 2024, and December 31, 2023 and gross charge-offs for the year ended December 31, 2024 and for the year ended December 31, 2023.

December 31, 2024	2024			2023		2022			2021			2020			Prior			Revolving		Revolving Converted to Term		Total
Total Loans Receivable	$	124,670		$	143,098	$	291,855		$	308,352		$	211,268		$	324,738		$	102,602	$	-	$	1,506,583
Total current period gross charge-off	$	(64	)	$	-	$	(1,010	)	$	(125	)	$	(2	)	$	(1,267	)	$	-	$	-	$	(2,468	)

Residential real estate
Pass (1-6)	$	13,118		$	30,947	$	90,324		$	99,390		$	102,552		$	119,449		$	2,468	$	-	$	458,248
Special Mention (7)		-			371		365			1,064			554			1,937			-		-		4,291
Substandard (8)		-			539		1,161			601			510			1,943			-		-		4,754
Total	$	13,118		$	31,857	$	91,850		$	101,055		$	103,616		$	123,329		$	2,468	$	-	$	467,293
Current period gross charge-off		-			-		-			-			-			(28	)		-		-		(28	)

Home equity
Pass (1-6)	$	193		$	68	$	153		$	110		$	-		$	3,342		$	44,943	$	-	$	48,809
Special Mention (7)		-			132		-			-			3			15			309		-		459
Substandard (8)		26			-		138			-			-			218			108		-		490
Total	$	219		$	200	$	291		$	110		$	3		$	3,575		$	45,360	$	-	$	49,758
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Commercial real estate
Pass (1-6)	$	49,861		$	67,290	$	123,342		$	96,206		$	53,864		$	148,529		$	2,976	$	-	$	542,068
Special Mention (7)		974			-		1,036			2,375			668			2,930			25		-		8,008
Substandard (8)		-			-		-			-			202			1,396			-		-		1,598
Total	$	50,835		$	67,290	$	124,378		$	98,581		$	54,734		$	152,855		$	3,001	$	-	$	551,674
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Construction and land development
Pass (1-6)	$	34,599		$	24,360	$	3,732		$	7,867		$	224		$	820		$	5,312	$	-	$	76,914
Special Mention (7)		-			-		-			1,207			2,468			-			-		-		3,675
Substandard (8)		-			1,018		-			1,267			-			-			-		-		2,285
Total	$	34,599		$	25,378	$	3,732		$	10,341		$	2,692		$	820		$	5,312	$	-	$	82,874
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Multifamily
Pass (1-6)	$	6,398		$	8,923	$	56,771		$	74,716		$	36,075		$	20,066		$	627	$	-	$	203,576
Special Mention (7)		-			-		780			3,332			1,217			-			-		-		5,329
Substandard (8)		-			-		446			1,219			1,516			369			-		-		3,550
Total	$	6,398		$	8,923	$	57,997		$	79,267		$	38,808		$	20,435		$	627	$	-	$	212,455
Current period gross charge-off		-			-		-			(125	)		-			-			-		-		(125	)

Commercial business
Pass (1-6)	$	14,655		$	8,123	$	9,441		$	6,094		$	3,653		$	11,416		$	44,046	$	-	$	97,428
Special Mention (7)		-			25		978			39			-			800			1,686		-		3,528
Substandard (8)		-			1,139		80			171			177			1,621			102		-		3,290
Total	$	14,655		$	9,287	$	10,499		$	6,304		$	3,830		$	13,837		$	45,834	$	-	$	104,246
Current period gross charge-off		-			-		(1,010	)		-			-			(1,239	)		-		-		(2,249	)

Consumer
Pass (1-6)	$	301		$	163	$	34		$	51		$	-		$	2		$	-	$	-	$	551
Substandard (8)		-			-		-			-			-			-			-		-		-
Total	$	301		$	163	$	34		$	51		$	-		$	2		$	-	$	-	$	551
Current period gross charge-off		(64	)		-		-			-			(2	)		-			-		-		(66	)

Manufactured homes
Pass (1-6)	$	-		$	-	$	1,634		$	11,360		$	7,559		$	6,101		$	-	$	-	$	26,654
Substandard (8)		-			-		-			28			26			-			-		-		54
Total	$	-		$	-	$	1,634		$	11,388		$	7,585		$	6,101		$	-	$	-	$	26,708
Current period gross charge-off		-			-		-			-			-			-			-		-		-

Government
Pass (1-6)	$	4,545		$	-	$	1,440		$	1,255		$	-		$	3,784		$	-	$	-	$	11,024
Total	$	4,545		$	-	$	1,440		$	1,255		$	-		$	3,784		$	-	$	-	$	11,024
Current period gross charge-off		-			-		-			-			-			-			-		-		-

December 31, 2023	2023			2022			2021		2020			2019			Prior			Revolving			Revolving Converted to Term		Total
Total Loans Receivable	$	148,105		$	323,820		$	321,183	$	234,861		$	108,683		$	274,027		$	94,893		$	3,183	$	1,508,755
Total current period gross charge-off	$	(95	)	$	(150	)	$	-	$	(367	)	$	(50	)	$	(1,882	)	$	(27	)	$	-		(2,571	)

Residential real estate
Pass (1-6)	$	20,740		$	97,671		$	106,778	$	115,001		$	23,873		$	113,987		$	1,716		$	-	$	479,766
Special Mention (7)		405			-			473		173			431			1,602			-			-		3,084
Substandard (8)		-			786			152		471			217			472			-			-		2,098
Total	$	21,145		$	98,457		$	107,403	$	115,645		$	24,521		$	116,061		$	1,716		$	-	$	484,948
Current period gross charge-off		-			(40	)		-		(25	)		(39	)		(893	)		-			-		(997	)

Home equity
Pass (1-6)	$	110		$	114		$	101	$	14		$	61		$	2,051		$	42,801		$	700	$	45,952
Special Mention (7)		-			-			-		-			4			31			70			63		168
Substandard (8)		-			161			-		-			-			67			251			-		479
Total	$	110		$	275		$	101	$	14		$	65		$	2,149		$	43,122		$	763	$	46,599
Current period gross charge-off		-			-			-		-			-			(16	)		(27	)		-		(43	)

Commercial real estate
Pass (1-6)	$	52,880		$	127,607		$	90,108	$	55,236		$	56,255		$	108,489		$	2,649		$	-	$	493,224
Special Mention (7)		-			69			2,429		1,274			1,123			2,397			142			-		7,434
Substandard (8)		-			-			-		230			-			2,314			-			-		2,544
Total	$	52,880		$	127,676		$	92,537	$	56,740		$	57,378		$	113,200		$	2,791		$	-	$	503,202
Current period gross charge-off		-			-			-		-			-			(372	)		-			-		(372	)

Construction and land development
Pass (1-6)	$	48,518		$	24,948		$	13,411	$	1,732		$	4,284		$	473		$	12,539		$	2,420	$	108,325
Special Mention (7)		365			76			4,205		2,256			-			-			-			-		6,902
Substandard (8)		-			-			-		-			-			-			-			-		-
Total	$	48,883		$	25,024		$	17,616	$	3,988		$	4,284		$	473		$	12,539		$	2,420	$	115,227
Current period gross charge-off		-			-			-		-			-			-			-			-		-

Multifamily
Pass (1-6)	$	9,333		$	53,493		$	78,122	$	41,773		$	13,156		$	19,609		$	186		$	-	$	215,672
Substandard (8)		-			-			1,666		1,562			-			1,017			-			-		4,245
Total	$	9,333		$	53,493		$	79,788	$	43,335		$	13,156		$	20,626		$	186		$	-	$	219,917
Current period gross charge-off		-			-			-		-			-			-			-			-		-

Commercial business
Pass (1-6)	$	13,110		$	13,774		$	9,327	$	5,705		$	4,105		$	12,905		$	33,954		$	-	$	92,880
Special Mention (7)		373			197			58		-			129			436			417			-		1,610
Substandard (8)		43			1,094			256		214			-			1,121			168			-		2,896
Total	$	13,526		$	15,065		$	9,641	$	5,919		$	4,234		$	14,462		$	34,539		$	-	$	97,386
Current period gross charge-off		-			(110	)		-		(342	)		(11	)		(601	)		-			-		(1,064	)

Consumer
Pass (1-6)	$	338		$	73		$	108	$	4		$	14		$	71		$	-		$	-	$	608
Substandard (8)		-			-			-		2			-			-			-			-		2
Total	$	338		$	73		$	108	$	6		$	14		$	71		$	-		$	-	$	610
Current period gross charge-off		(95	)		-			-		-			-			-			-			-		(95	)

Manufactured homes
Pass (1-6)	$	-		$	1,942		$	12,556	$	9,214		$	5,031		$	2,102		$	-		$	-	$	30,845
Total	$	-		$	1,942		$	12,556	$	9,214		$	5,031		$	2,102		$	-		$	-	$	30,845
Current period gross charge-off		-			-			-		-			-			-			-			-		-

Government
Pass (1-6)	$	1,890		$	1,815		$	1,433	$	-		$	-		$	4,883		$	-		$	-	$	10,021
Total	$	1,890		$	1,815		$	1,433	$	-		$	-		$	4,883		$	-		$	-	$	10,021
Current period gross charge-off		-			-			-		-			-			-			-			-		-

The Company has established a standard loan grading system to assist management, lenders and review personnel in their analysis and supervision of the loan portfolio. The use and application of these grades by the Company is uniform and conforms to regulatory definitions. The loan grading system is as follows:

1 – Superior Quality

Loans in this category are substantially risk free. Loans fully collateralized by a Bank certificate of deposit or Bank deposits with a hold are substantially risk free.

2 – Excellent Quality

The borrower generates excellent and consistent cash flow for debt coverage, excellent average credit scores, excellent liquidity and net worth and are reputable operators with over 15 years’ experience. Current and debt to tangible net worth ratios are excellent. Loan to value is substantially below policy and collateral condition is excellent.

3 – Great Quality

The borrower generates more than sufficient cash flow to fund debt service and cash flow is improving. Average credit scores are very strong. Operators are reputable with significant years of experience. Liquidity, net worth, current and debt to tangible net worth ratios are very strong. Loan to value is significantly below policy and collateral condition is significantly above average.

4 – Above Average Quality

The borrower generates more than sufficient cash flow to fund debt service but cash flow trends may be stable or slightly declining. Average credit scores are strong. The borrower is a reputable operator with many years of experience. Liquidity, net worth, current and debt to tangible net worth ratios are strong. Loan to value is below policy and collateral condition is above average.

5 – Average Quality

Borrowers are considered creditworthy and can repay the debt in the normal course of business, however, cash flow trends may be inconsistent or fluctuating. Average credit scores are satisfactory and years of experience is acceptable. Liquidity and net worth are satisfactory. Current and debt to tangible net worth ratios are average. Loan to value is slightly below policy and the collateral condition is slightly above average.

6 – Pass

Borrowers are considered credit worthy but financial condition may show signs of weakness due to internal or external factors. Cash flow trends may be declining annually. Average credit scores may be low but remain acceptable. Borrower has limited years of experience. Liquidity, net worth, current and debt to tangible net worth ratios are below average. Loan to value is nearing policy limits and collateral condition is average.

7 – Special Mention

A special mention asset has identified weaknesses that deserve Management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Bank institution to sufficient risk to warrant adverse classification. There is still adequate protection by the current sound worth and paying capacity of the obligor or of the collateral pledged. The Special Mention rating is viewed as transitional and will be monitored closely.

Loans in this category may exhibit some of the following risk factors. Cash flow trends may be consistently declining or may be questionable. Debt coverage ratios may be at or near 1:1. Average credit scores may be very weak or the borrower may have minimal years of experience. Liquidity, net worth, current and debt to tangible net worth ratios may be very weak. Loan to value may be at policy limits or may exceed policy limits. Collateral condition may be below average.

8 – Substandard

This classification consists of loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. Financial statements normally reveal some or all of the following: poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Loans are still considered collectible, but due to increased risks and defined weaknesses of the credit, some loss could be incurred in collection if the deficiencies are not corrected.

9 – Doubtful

Such loans have been placed on nonaccrual status and may be heavily dependent upon collateral possessing a value that is difficult to determine or based upon some near-term event which lacks clear certainty. These loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable.

10 – Loss

Loans that are considered uncollectible and of such little value that continuing to carry them as assets is not warranted.

Loans with risk classifications of pass and special mention were part of the pooled loan ACL analysis. Loans classified as substandard or worse were individually evaluated for impairment and specific reserves were established, if applicable. Risk gradings for loans with balances greater than $1 million are updated every 12 months through analysis during origination, renewals, modifications, or regular annual review. Risk gradings for loans with balances less than $1 million are updated primarily through analysis during origination, renewals, modifications, or periodic review. Risk gradings are also downgraded due to delinquency at month end. In particular, 60 days past due are downgraded to Special Mention, while 90 days past due are further downgraded to Substandard.

Modifications to Borrowers Experiencing Financial Difficulty

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point to estimate such credit losses is historical loss information. The Company uses a probability of default/loss given default model to determine the allowance for credit losses recorded at origination. Occasionally, the Company subsequently modifies loans for borrowers experiencing financial distress by providing the following forms of relief: principal forgiveness, term extension, payment delay, or interest rate reduction. In some cases, the Company provides multiple types of modifications on one loan. Because the effect of most modifications to borrowers experiencing financial difficulty is already included in the allowance for credit losses, no change to the allowance for credit losses is generally recorded for these modifications.

The following table shows the amortized cost of loans at December 31, 2024, that were both experiencing financial difficulty and modified during the year ended December 31, 2024, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below.

	For the twelve months ended December 31, 2024
(Dollars in thousands)	Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		% of Total Segment Financing Receivables
Residential Real Estate	$	528	$	1,115	$	-	$	-		0.35	%
Home Equity		41		-		-		-		0.01	%
Total	$	569	$	1,115	$	-	$	-		0.11	%

	For the year ended December 31, 2023
(Dollars in thousands)	Payment Delay		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		% of Total Segment Financing Receivables
Residential Real Estate	$	-	$	868	$	-	$	-		0.18	%
Total	$	-	$	868	$	-	$	-		0.06	%

The financial effects of payment delay modifications and term extension modifications were forbearance average of five months and four months weighted average extension to life of loan, respectively. There were no commitments to lend additional amounts to the borrowers included in the previous tables.

The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The performance of such modified loans is presented below.

	For the year ended December 31, 2024
(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due
Residential Real Estate	$	545	$	570	$	-	$	528
Home Equity		-		-		-		41
Total	$	545	$	570	$	-	$	569

	For the year ended December 31, 2023
(Dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due
Residential Real Estate	$	868	$	-	$	-	$	-
Total	$	868	$	-	$	-	$	-

Upon the Company’s determination that a modified loan has subsequently been deemed uncollectible, the loan is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. All modified loans are deemed collectible.

Foreclosures

There were $589 thousand in multifamily loans, $7 thousand in home equity loans and $736 thousand in residential loans in the process of foreclosure as of December 31, 2024.

Acquired Loan Purchase Discounts

As part of the fair value of loans receivable, there was a net fair value discount for loans acquired of $4.4 million at December 31, 2024, compared to $5.2 million at December 31, 2023.

Accretable yield, or income recorded for the twelve months ended December 31, is as follows:

(Dollars in thousands)	Total
2023	$	1,078
2024		799

Accretable yield, or income expected to be recorded in the future is as follows:

(Dollars in thousands)	Total
2025	$	643
2026		474
2027		305
2028		290
2029		253
2030 and thereafter		2,440
Total	$	4,405

Allowance for Credit Losses

The allowance for credit losses is established for current expected credit losses on the Company’s loan portfolio utilizing guidance in Accounting Standards Codification (ASC) Topic 326.

The determination of the allowance requires significant judgment to estimate credit losses measured on a collective pool basis when similar risk characteristics exist, and for loans evaluated individually. In determining the allowance, the Company estimates expected future losses for the loan’s entire contractual term adjusted for expected payments when appropriate. The allowance estimate considers relevant available information, from internal and external sources relating to the historical loss experience, current conditions, and reasonable and supportable forecasts for the Company’s outstanding loan balances. The allowance is an estimation that reflects management’s evaluation of expected losses related to the Company’s financial assets measured at amortized cost. To ensure that the allowance is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance.

The Company categorizes the loan portfolio into nine segments based on similar risk characteristics. Loans within each segment are collectively evaluated using the probability of default (“PD”)/loss given default (“LGD”) methodology (PD/LGD). In creating the “current expected credit loss (CECL)” model as required under ASC 326, the Company has established a two-year reasonable and supportable forecast period with a two-year straight line reversion to the long-term historical average. Due to its minimal loss history, the Company elected to use peer data for a more reasonable calculation.

The Bancorp's activity in the allowance for credit losses, by loan segment, is summarized below for the year ended December 31, 2024:

(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance

Allowance for credit losses:
Residential real estate	$	3,984	$	(28	)	$	44	$	481		$	4,481
Home equity		698		-			-		137			835
Commercial real estate		7,045		-			5		(606	)		6,444
Construction and land development		4,206		-			-		(1,555	)		2,651
Multifamily		933		(125	)		31		164			1,003
Commercial business		1,649		(2,249	)		310		1,475			1,185
Consumer		7		(66	)		22		42			5
Manufactured homes		181		-			-		71			252
Government		65		-			-		(10	)		55
Total	$	18,768	$	(2,468	)	$	412	$	199		$	16,911

The Bancorp's activity in the allowance for credit losses, by loan segment, is summarized below for the year ended December 31, 2023:

(Dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		Provisions			Ending Balance

Allowance for credit losses:
Residential real estate	$	5,244	$	(997	)	$	149	$	(412	)	$	3,984
Home equity		538		(43	)		-		203			698
Commercial real estate		7,230		(372	)		3		184			7,045
Construction and land development		2,988		-			-		1,218			4,206
Multifamily		1,148		-			131		(346	)		933
Commercial business		1,690		(1,064	)		265		758			1,649
Consumer		79		(95	)		15		8			7
Manufactured homes		112		-			-		69			181
Government		55		-			-		10			65
Total	$	19,084	$	(2,571	)	$	563	$	1,692		$	18,768

A collateral dependent loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent.

The table below presents the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses.

(Dollars in thousands)	December 31, 2024

	Real Estate		Equipment/Inventory		Accounts Receivable		Vehicles		Total		ACL Allocation
Residential real estate	$	3,012	$	-	$	-	$	-	$	3,012	$	50
Home equity		219		-		-		-		219		-
Commercial real estate		1,598		-		-		-		1,598		43
Construction and land development		2,285		-		-		-		2,285		-
Multifamily		3,550		-		-		-		3,550		-
Commercial business		712		1,399		1,428		144		3,683		191
	$	11,376	$	1,399	$	1,428	$	144	$	14,347	$	284

(Dollars in thousands)	December 31, 2023

	Real Estate		Equipment/Inventory		Accounts Receivable		Vehicles		Total		ACL Allocation
Residential real estate	$	30	$	-	$	-	$	-	$	30	$	30
Commercial real estate		2,541		-		-		-		2,541		53
Multifamily		4,244		-		-		-		4,244		85
Commercial business		-		1,583		1,557		192		3,332		738
	$	6,815	$	1,583	$	1,557	$	192	$	10,147	$	906

A deferred cost reserve is maintained for the portfolio of manufactured home loans that have been purchased. This reserve is available for use for manufactured home loan nonperformance and costs associated with nonperformance. If the segment performs in line with expectations, the deferred cost reserve is paid as a premium to the third party originator of the loan. The unamortized balance of the deferred cost reserve totaled $3.2 million and $3.5 million as of December 31, 2024, and December 31, 2023, respectively, and is included in net deferred loan origination cost.

The following table presents non–accrual loans, and loans past due over 90 days still on accrual by class of loans:

As of December 31, 2024 (Dollars in thousands)	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with Allowance for Credit Loss		Nonaccrual Loans in Total		Loans Past Due over 90 Days Still Accruing
Residential real estate	$	1,514	$	3,150		4,664	$	-
Home equity		179		304		483		-
Commercial real estate		1,078		202		1,280		-
Construction and land development		659		-		659		-
Multifamily		3,362		-		3,362		-
Commercial business		3,099		191		3,290		-
Total	$	9,891	$	3,847	$	13,738	$	-

As of December 31, 2023 (Dollars in thousands)	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with Allowance for Credit Loss		Nonaccrual Loans in Total		Loans Past Due over 90 Days Still Accruing
Residential real estate	$	442	$	1,251	$	1,693	$	1,131
Home equity		161		307		468		-
Commercial real estate		603		230		833		712
Multifamily		2,357		1,358		3,715		-
Commercial business		1,724		1,173		2,897		-
Consumer		-		2		2		-
Total	$	5,287	$	4,321	$	9,608	$	1,843

Accrued interest receivable on loans totaled $5.5 million as of December 31, 2024 and $5.7 million as of December 31, 2023 and is excluded from the estimate of credit losses. The Company made the accounting policy election to not measure an ACL for accrued interest receivable. Accrued interest deemed uncollectible will be written off through interest income.

Liability for Credit Losses on Unfunded Loan Commitments

The liability for credit losses inherent in unfunded loan commitments is included in accrued expenses and other liabilities on the Consolidated Balance Sheet. The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the ACL. The following table shows the changes in the liability for credit losses on unfunded loan commitments.

	For the year ended			For the year ended
(Dollars in thousands)	December 31, 2024			December 31, 2023
Balance, beginning of period	$	3,441		$	3,108
Provision (Release)		(702	)		333
Balance, end of period	$	2,739		$	3,441