Loan and Allowance for Credit Losses	3 Months Ended
Loan and Allowance for Credit Losses	Mar. 31, 2025
Loans And Leases Receivable Disclosure [Abstract]
Loans and leases receivable disclosure [Text Block]	NOTE 4: LOANS AND ALLOWANCE FOR CREDIT LOSSES March 31, December 31, (Dollars in thousands) 2025 2024 Commercial and industrial $ 59,061 $ 63,274 Construction and land development 86,403 82,493 Commercial real estate: Owner occupied 61,079 55,346 Hotel/motel 34,607 35,210 Multi-family 43,198 43,556 Other 149,469 155,880 Total commercial real estate 288,353 289,992 Residential real estate: Consumer mortgage 59,659 60,399 Investment property 57,841 58,228 Total residential real estate 117,500 118,627 Consumer installment 9,333 9,631 Total Loans $ 560,650 $ 564,017 Loans secured by real estate were approximately 87.8% of the Company’s total loan portfolio at March 31, 2025. At March 31, 2025, the Company’s geographic loan distribution was concentrated primarily in Lee County, Alabama, and surrounding areas. The loan portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. As part of the Company’s quarterly assessment of the allowance, the loan portfolio included the following portfolio segments: commercial and industrial, construction and land development, commercial real estate, residential real estate, and consumer installment. Where appropriate, the Company’s loan portfolio segments are further disaggregated into classes. A class is generally determined based on the initial measurement attribute, risk characteristics of the loan, and an entity’s method for monitoring and determining credit risk. The following describes the risk characteristics relevant to each of the portfolio segments and classes. Commercial and industrial (“C&I”) — includes loans to finance business operations, equipment purchases, or other needs for small and medium-sized commercial customers. Also included in this category are loans to finance agricultural production. Generally, the primary source of repayment is the cash flow from business operations and activities of the borrower. Construction and land development (“C&D”) — includes both loans and credit lines for the purpose of purchasing, carrying, and developing land into commercial developments or residential subdivisions. Also included are loans and credit lines for construction of residential, multi-family, and commercial buildings. Generally, the primary source of repayment is dependent upon the sale or refinance of the real estate collateral. Commercial real estate (“CRE”) — includes loans in these classes: ● Owner occupied – includes loans secured by business facilities to finance business operations, equipment and owner-occupied facilities primarily for small and medium-sized commercial customers. Generally, the primary source of repayment is the cash flow from business operations and activities of the borrower, who owns the property. ● Hotel/motel – includes loans for hotels and motels. Generally, the primary source of repayment is dependent upon income generated from the hotel/motel securing the loan. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the borrower. ● Multi-family – primarily includes loans to finance income-producing multi-family properties. These include loans for 5 or more unit residential properties and apartments leased to residents. Generally, the primary source of repayment is dependent upon income generated from the real estate collateral. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the respective borrowers. ● Other – primarily includes loans to finance income-producing commercial properties other than hotels/motels and multi-family properties, and which are not owner occupied. Loans in this class include loans for neighborhood retail centers, medical and professional offices, single retail stores, industrial buildings, and warehouses leased to local and other businesses. Generally, the primary source of repayment is dependent upon income generated from the real estate collateral. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the borrower. Residential real estate (“RRE”) — includes loans in these two classes: ● Consumer mortgage – primarily includes first or second lien mortgages and home equity lines of credit to consumers that are secured by a primary residence or second home. These loans are underwritten in accordance with the Bank’s general loan policies and procedures which require, among other things, proper documentation of each borrower’s financial condition, satisfactory credit history, and property value. ● Investment property – primarily includes loans to finance income-producing 1-4 family residential properties. Generally, the primary source of repayment is dependent upon income generated from leasing the property securing the loan. The underwriting of these loans takes into consideration the rental rates and property values, as well as the financial health of the borrowers. Consumer installment — includes loans to individuals, which may be secured by personal property or are unsecured. Loans include personal lines of credit, automobile loans, and other retail loans. These loans are underwritten in accordance with the Bank’s general loan policies and procedures which require, among other things, proper documentation of each borrower’s financial condition, satisfactory credit history, and, if applicable, property values. The following is a summary of current, accruing past due, and nonaccrual loans by portfolio segment and class as of March 31, 2025 and December 31, 2024. Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total (Dollars in thousands) Current Past Due 90 days Loans Accrual Loans March 31, 2025: Commercial and industrial $ 58,994 64 — 59,058 3 $ 59,061 Construction and land development 85,894 105 — 85,999 404 86,403 Commercial real estate: Owner occupied 61,079 — — 61,079 — 61,079 Hotel/motel 34,607 — — 34,607 — 34,607 Multi-family 43,198 — — 43,198 — 43,198 Other 149,350 119 — 149,469 — 149,469 Total commercial real estate 288,234 119 — 288,353 — 288,353 Residential real estate: Consumer mortgage 59,183 403 — 59,586 73 59,659 Investment property 57,724 — 77 57,801 40 57,841 Total residential real estate 116,907 403 77 117,387 113 117,500 Consumer installment 9,262 71 — 9,333 — 9,333 Total $ 559,291 762 77 560,130 520 $ 560,650 December 31, 2024: Commercial and industrial $ 63,163 12 — 63,175 99 $ 63,274 Construction and land development 82,089 — — 82,089 404 82,493 Commercial real estate: Owner occupied 55,346 — — 55,346 — 55,346 Hotel/motel 35,210 — — 35,210 — 35,210 Multi-family 43,556 — — 43,556 — 43,556 Other 155,880 — — 155,880 — 155,880 Total commercial real estate 289,992 — — 289,992 — 289,992 Residential real estate: Consumer mortgage 59,677 722 — 60,399 — 60,399 Investment property 58,179 49 — 58,228 — 58,228 Total residential real estate 117,856 771 — 118,627 — 118,627 Consumer installment 9,579 52 — 9,631 — 9,631 Total $ 562,679 835 — 563,514 503 $ 564,017 Credit Quality Indicators The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. These categories are utilized to develop the associated allowance for credit losses using historical losses adjusted for qualitative and environmental factors and are defined as follows: ● Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral. ● Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. ● Substandard Accruing – loans that exhibit a well-defined weakness which presently jeopardizes debt repayment, even though they are currently performing. These loans are characterized by the distinct possibility that the Company may incur a loss in the future if these weaknesses are not corrected. ● Nonaccrual – includes loans where management has determined that full payment of principal and interest is not expected. Substandard accrual and nonaccrual loans are often collectively referred to as “classified.” The following tables presents credit quality indicators for the loan portfolio segments and classes by year of origination as of March 31, 2025 and December 31, 2024. Year of Origination 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Total Loans (Dollars in thousands) March 31, 2025: Commercial and industrial Pass $ 2,160 5,714 6,740 8,130 12,128 21,273 2,550 $ 58,695 Special mention — 49 74 — — — — 123 Substandard 51 — 19 164 6 — — 240 Nonaccrual — — — 3 — — — 3 Total commercial and industrial 2,211 5,763 6,833 8,297 12,134 21,273 2,550 59,061 Current period gross charge-offs — — 99 — — — — 99 Construction and land development Pass 4,983 35,676 23,353 16,671 951 737 3,628 85,999 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — 404 — — — — — 404 Total construction and land development 4,983 36,080 23,353 16,671 951 737 3,628 86,403 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 7,216 1,440 10,856 6,626 16,856 14,968 2,028 59,990 Special mention — — — — — 581 — 581 Substandard — 508 — — — — — 508 Nonaccrual — — — — — — — — Total owner occupied 7,216 1,948 10,856 6,626 16,856 15,549 2,028 61,079 Current period gross charge-offs — — — — — — — — Hotel/motel Pass — 461 6,397 9,322 3,047 15,380 — 34,607 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel — 461 6,397 9,322 3,047 15,380 — 34,607 Current period gross charge-offs — — — — — — — — Year of Origination 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Total Loans (Dollars in thousands) March 31, 2025: Multi-family Pass 20 3,728 8,495 16,930 1,843 12,160 22 43,198 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 20 3,728 8,495 16,930 1,843 12,160 22 43,198 Current period gross charge-offs — — — — — — — — Other Pass 974 32,992 19,560 30,079 21,556 31,565 12,624 149,350 Special mention — — — — — — — — Substandard — — — — — 119 — 119 Nonaccrual — — — — — — — — Total other 974 32,992 19,560 30,079 21,556 31,684 12,624 149,469 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 806 5,003 17,298 17,824 2,598 13,201 1,582 58,312 Special mention — 244 — — — 262 — 506 Substandard — — — — — 768 — 768 Nonaccrual — — 73 — — — — 73 Total consumer mortgage 806 5,247 17,371 17,824 2,598 14,231 1,582 59,659 Current period gross charge-offs — — — — — 1 — 1 Investment property Pass 1,409 10,306 10,404 10,661 8,157 15,573 762 57,272 Special mention — — — — — — — — Substandard — 287 — 93 7 142 — 529 Nonaccrual — — 40 — — — — 40 Total investment property 1,409 10,593 10,444 10,754 8,164 15,715 762 57,841 Current period gross charge-offs — — — — — — — — Consumer installment Pass 2,022 3,401 1,688 1,461 230 107 333 9,242 Special mention 1 — 11 — 9 — — 21 Substandard — 46 15 9 — — — 70 Nonaccrual — — — — — — — — Total consumer installment 2,023 3,447 1,714 1,470 239 107 333 9,333 Current period gross charge-offs — — — — — — — — Total loans Pass 19,590 98,721 104,791 117,704 67,366 124,964 23,529 556,665 Special mention 1 293 85 — 9 843 — 1,231 Substandard 51 841 34 266 13 1,029 — 2,234 Nonaccrual — 404 113 3 — — — 520 Total loans $ 19,642 100,259 105,023 117,973 67,388 126,836 23,529 $ 560,650 Total current period gross charge-offs $ — — 99 — — 1 — 100 Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) December 31, 2024: Commercial and industrial Pass $ 11,290 7,265 8,488 9,677 4,659 16,989 4,425 $ 62,793 Special mention 49 74 — — — — — 123 Substandard 50 21 181 7 — — — 259 Nonaccrual — 99 — — — — — 99 Total commercial and industrial 11,389 7,459 8,669 9,684 4,659 16,989 4,425 63,274 Current period gross charge-offs — — 9 — — — — 9 Construction and land development Pass 31,144 29,520 16,504 1,794 1,434 104 1,589 $ 82,089 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual 404 — — — — — — 404 Total construction and land development 31,548 29,520 16,504 1,794 1,434 104 1,589 82,493 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 1,921 11,206 6,776 17,114 3,396 12,030 1,552 $ 53,995 Special mention — 249 — — 591 — — 840 Substandard 511 — — — — — — 511 Nonaccrual — — — — — — — — Total owner occupied 2,432 11,455 6,776 17,114 3,987 12,030 1,552 55,346 Current period gross charge-offs — — — — — — — — Hotel/motel Pass 480 6,480 5,303 3,079 1,299 14,437 4,132 35,210 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 480 6,480 5,303 3,079 1,299 14,437 4,132 35,210 Current period gross charge-offs — — — — — — — — Year of Origination 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Total Loans (Dollars in thousands) December 31, 2024: Multi-family Pass 3,739 6,041 17,037 1,863 3,493 6,400 4,983 43,556 Special mention — — — — — — — — Substandard — — — — — — — — Nonaccrual — — — — — — — — Total multi-family 3,739 6,041 17,037 1,863 3,493 6,400 4,983 43,556 Current period gross charge-offs — — — — — — — — Other Pass 43,753 21,085 32,521 21,249 16,743 16,289 4,120 155,760 Special mention — — — — — — — — Substandard — — — — 120 — — 120 Nonaccrual — — — — — — — — Total other 43,753 21,085 32,521 21,249 16,863 16,289 4,120 155,880 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 5,885 18,389 18,434 2,466 2,565 10,590 808 59,137 Special mention 243 — — — 2 486 — 731 Substandard — — — — — 531 — 531 Nonaccrual — — — — — — — — Total consumer mortgage 6,128 18,389 18,434 2,466 2,567 11,607 808 60,399 Current period gross charge-offs — — — — — 61 — 61 Investment property Pass 10,339 10,824 10,651 8,305 11,435 4,794 1,317 57,665 Special mention — — — — — — — — Substandard 278 40 93 9 143 — — 563 Nonaccrual — — — — — — — — Total investment property 10,617 10,864 10,744 8,314 11,578 4,794 1,317 58,228 Current period gross charge-offs — — — — — — — — Consumer installment Pass 5,015 2,057 1,911 296 90 113 67 9,549 Special mention — 9 — 9 — — — 18 Substandard 39 15 10 — — — — 64 Nonaccrual — — — — — — — — Total consumer installment 5,054 2,081 1,921 305 90 113 67 9,631 Current period gross charge-offs 25 42 42 1 — 4 — 114 Total loans Pass 113,566 112,867 117,625 65,843 45,114 81,746 22,993 559,754 Special mention 292 332 — 9 593 486 — 1,712 Substandard 878 76 284 16 263 531 — 2,048 Nonaccrual 404 99 — — — — — 503 Total loans $ 115,140 113,374 117,909 65,868 45,970 82,763 22,993 $ 564,017 Total current period gross charge-offs $ 25 42 51 1 — 65 — 184 Allowance for Credit Losses The allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics, and for loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. The composition of the provision for credit losses for the respective periods is presented below. Quarter ended March 31, (Dollars in thousands) 2025 2024 Provision for credit losses: Loans $ (57) $ 285 Reserve for unfunded commitments 47 49 Total provision for credit losses $ (10) $ 334 The following table details the changes in the allowance for credit losses for loans, by portfolio segment, for the respective periods. (Dollars in thousands) Commercial and industrial Construction and land development Commercial real estate Residential real estate Consumer installment Total Quarter ended March 31, 2025: Beginning balance $ 1,244 1,059 3,842 588 138 $ 6,871 Charge-offs (99) — — (1) — (100) Recoveries 28 — — 2 6 36 Net (charge-offs) recoveries (71) — — 1 6 (64) Provision for credit losses 46 342 (689) 272 (28) (57) Ending balance $ 1,219 1,401 3,153 861 116 $ 6,750 Quarter ended March 31, 2024: Beginning balance $ 1,288 960 3,921 546 148 $ 6,863 Charge-offs — — — — (24) (24) Recoveries 66 — — 3 22 91 Net recoveries (charge-offs) 66 — — 3 (2) 67 Provision for credit losses 61 (120) 281 64 (1) 285 Ending balance $ 1,415 840 4,202 613 145 $ 7,215 The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses for the respective periods: Business (Dollars in thousands) Real Estate Assets Total Loans March 31, 2025: Construction and land development $ 404 — $ 404 Total $ 404 — $ 404 December 31, 2024: Commercial and industrial $ — 99 $ 99 Construction and land development $ 404 — $ 404 Total $ 404 99 $ 503 The following table summarizes the Company’s nonaccrual loans by major categories for the respective periods. (Dollars in thousands) No Allowance With an Allowance Total March 31, 2025 Commercial and industrial $ — 3 3 Construction and land development — 404 404 Residential real estate — 113 113 Total $ — 520 520 December 31, 2024 Commercial and industrial $ — 99 99 Construction and land development 404 — 404 Total $ 404 99 503