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Loans and Leases (Tables)

12 Months Ended

Dec. 31, 2024

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

As of December 31, 2024 and 2023, the composition of the loan portfolio by portfolio segment was as follows:


	December 31, 2024		December 31, 2023
	(Dollars in Thousands)
Real estate loans:
Construction, land development and other land loans	$	65,537	$	88,140
Secured by 1-4 family residential properties		69,999		76,200
Secured by multi-family residential properties		101,057		62,397
Secured by non-farm, non-residential properties		227,751		213,586
Commercial and industrial loans (1)		44,238		60,515
Consumer loans:
Direct		4,774		5,938
Branch retail		5,558		8,670
Indirect		304,125		306,345
Total loans		823,039		821,791
Allowance for credit losses on loans and leases		10,184		10,507
Net loans (2)	$	812,855	$	811,284

(1)

Includes equipment financing leases, totaling $14.2 million and $12.6 million as of December 31, 2024 and 2023, respectively.

(2)

Loans are presented net of unearned income and unamortized deferred fees and costs of $0.8 million as of both December 31, 2024 and 2023. In addition, loans are also presented net of unamortized premiums associated with Indirect loans of $10.6 million and $10.2 million as of December 31, 2024 and 2023, respectively.

Allowance for Credit Losses on Loans and Leases

The following tables present changes in the allowance for credit losses on loans and leases, as well as unfunded lending commitments, by portfolio segment, during the years ended December 31, 2024 and 2023:


	As of and for the Year Ended December 31, 2024
	Construction, Land Development, and Other			Real Estate 1-4 Family			Real Estate Multi- Family		Non- Farm Non- Residential			Commercial and Industrial			Direct Consumer			Branch Retail			Indirect Consumer			Total
	(Dollars in Thousands)
Allowance for credit losses on loans and leases:
Beginning balance	$	565		$	591		$	415	$	1,425		$	513		$	64		$	436		$	6,498		$	10,507
Charge-offs		—			(2	)		—		(248	)		(121	)		(62	)		(63	)		(1,318	)		(1,814	)
Recoveries		20			56			—		—			2			300			148			150			676
Provision for (recovery of) credit losses		(233	)		(239	)		131		251			1,137			(253	)		(451	)		472			815
Allowance for credit losses on loans and leases	$	352		$	406		$	546	$	1,428		$	1,531		$	49		$	70		$	5,802		$	10,184


Allowance for credit losses on unfunded lending commitments:
Beginning balance	$	450		$	1		$	9	$	2		$	102		$	5		$	—		$	—		$	569
Provision for (recovery of) credit losses on unfunded lending commitments		(170	)		—			34		14			(68	)		(3	)		—			—			(193	)
Allowance for credit losses on unfunded lending commitments	$	280		$	1		$	43	$	16		$	34		$	2		$	—		$	—		$	376


	As of and for the Year Ended December 31, 2023
	Construction, Land Development, and Other			Real Estate 1-4 Family			Real Estate Multi- Family			Non- Farm Non- Residential			Commercial and Industrial			Direct Consumer			Branch Retail			Indirect Consumer			Total
	(Dollars in Thousands)
Allowance for credit losses on loans and leases:
Beginning balance	$	517		$	832		$	646		$	1,970		$	919		$	866		$	518		$	3,154		$	9,422
Impact of adopting CECL accounting guidance		(94	)		(39	)		(85	)		(147	)		(20	)		47			628			1,833			2,123
Charge-offs		—			(97	)		—			—			—			(571	)		(445	)		(932	)		(2,045	)
Recoveries		—			54			—			—			—			619			243			49			965
Provision for (recovery of) credit losses		142			(159	)		(146	)		(398	)		(386	)		(897	)		(508	)		2,394			42
Allowance for credit losses on loans and leases	$	565		$	591		$	415		$	1,425		$	513		$	64		$	436		$	6,498		$	10,507


Allowance for credit losses on unfunded lending commitments:
Beginning balance	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Impact of adopting CECL accounting guidance		172			39			3			2			—			68			8			—			292
Provision for (recovery of) credit losses on unfunded lending commitments		278			(38	)		6			—			102			(63	)		(8	)		—			277
Allowance for credit losses on unfunded lending commitments	$	450		$	1		$	9		$	2		$	102		$	5		$	—		$	—		$	569

Loans By Credit Quality Indicators

The tables below illustrate the carrying amount of loans by credit quality indicator and year of origination as of December 31, 2024:


		December 31, 2024
		Loans at Amortized Cost Basis by Origination Year
		2024		2023		2022		2021		2020		Prior		Total
		(Dollars in Thousands)
Commercial:

Construction, land development and other land loans	Pass	$	852	$	4,626	$	45,087	$	11,931	$	41	$	450	$	62,987
	Special Mention		—		—		—		61		—		—		61
	Substandard		—		2,489		—		—		—		—		2,489
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	852	$	7,115	$	45,087	$	11,992	$	41	$	450	$	65,537

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Secured by multi-family residential properties	Pass	$	7,941	$	8,218	$	42,077	$	17,557	$	5,592	$	19,672	$	101,057
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		—		—		—		—		—
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	7,941	$	8,218	$	42,077	$	17,557	$	5,592	$	19,672	$	101,057

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Secured by non-farm, non-residential properties	Pass	$	25,251	$	24,906	$	34,930	$	36,793	$	54,527	$	49,681	$	226,088
	Special Mention		—		—		316		—		334		—		650
	Substandard		—		—		—		483		147		383		1,013
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	25,251	$	24,906	$	35,246	$	37,276	$	55,008	$	50,064	$	227,751

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	248	$	248

Commercial and industrial loans and leases	Pass	$	13,458	$	5,562	$	3,499	$	5,189	$	2,888	$	9,963	$	40,559
	Special Mention		—		—		30		60		—		—		90
	Substandard		—		—		—		2		—		303		305
	Doubtful		—		3,284		—		—		—		—		3,284
	Loss		—		—		—		—		—		—		—
	Subtotal	$	13,458	$	8,846	$	3,529	$	5,251	$	2,888	$	10,266	$	44,238

	Current period gross charge-offs	$	—	$	—	$	54	$	—	$	43	$	24	$	121

Total commercial	Pass	$	47,502	$	43,312	$	125,593	$	71,470	$	63,048	$	79,766	$	430,691
	Special Mention		—		—		346		121		334		—		801
	Substandard		—		2,489		—		485		147		686		3,807
	Doubtful		—		3,284		—		—		—		—		3,284
	Loss		—		—		—		—		—		—		—
		$	47,502	$	49,085	$	125,939	$	72,076	$	63,529	$	80,452	$	438,583

	Current period gross charge-offs	$	—	$	—	$	54	$	—	$	43	$	272	$	369


		December 31, 2024
		Loans at Amortized Cost Basis by Origination Year
		2024		2023		2022		2021		2020		Prior		Total
		(Dollars in Thousands)
Consumer:

Secured by 1-4 family residential properties	Performing	$	4,559	$	3,525	$	18,060	$	14,746	$	5,884	$	21,612	$	68,386
	Non-performing		—		—		—		—		—		1,613		1,613
	Subtotal	$	4,559	$	3,525	$	18,060	$	14,746	$	5,884	$	23,225	$	69,999

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	2	$	2

Direct	Performing	$	2,397	$	1,077	$	430	$	487	$	283	$	100	$	4,774
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	2,397	$	1,077	$	430	$	487	$	283	$	100	$	4,774

	Current period gross charge-offs	$	—	$	—	$	1	$	42	$	3	$	16	$	62

Branch retail	Performing	$	—	$	—	$	—	$	1,232	$	1,818	$	2,508	$	5,558
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	—	$	—	$	—	$	1,232	$	1,818	$	2,508	$	5,558

	Current period gross charge-offs	$	—	$	—	$	—	$	10	$	24	$	29	$	63

Indirect	Performing	$	54,546	$	72,461	$	74,514	$	54,672	$	40,090	$	7,842	$	304,125
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	54,546	$	72,461	$	74,514	$	54,672	$	40,090	$	7,842	$	304,125

	Current period gross charge-offs	$	21	$	95	$	278	$	521	$	305	$	98	$	1,318

Total consumer	Performing	$	61,502	$	77,063	$	93,004	$	71,137	$	48,075	$	32,062	$	382,843
	Non-performing		—		—		—		—		—		1,613		1,613
		$	61,502	$	77,063	$	93,004	$	71,137	$	48,075	$	33,675	$	384,456

	Current period gross charge-offs	$	21	$	95	$	279	$	573	$	332	$	145	$	1,445

The tables below illustrate the carrying amount of loans by credit quality indicator and year of origination as of December 31, 2023:


		December 31, 2023
		Loans at Amortized Cost Basis by Origination Year
		2023		2022		2021		2020		2019		Prior		Total
		(Dollars in Thousands)
Commercial:

Construction, land development and other land loans	Pass	$	7,913	$	37,068	$	41,800	$	804	$	—	$	555	$	88,140
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		—		—		—		—		—
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	7,913	$	37,068	$	41,800	$	804	$	—	$	555	$	88,140

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Secured by multi-family residential properties	Pass	$	407	$	29,683	$	5,950	$	5,676	$	7,063	$	13,618	$	62,397
	Special Mention		—		—		—		—		—		—		—
	Substandard		—		—		—		—		—		—		—
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	407	$	29,683	$	5,950	$	5,676	$	7,063	$	13,618	$	62,397

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Secured by non-farm, non-residential properties	Pass	$	26,521	$	36,141	$	23,551	$	56,404	$	18,127	$	46,261	$	207,005
	Special Mention		—		532		1,776		344		—		1,448		4,100
	Substandard		—		—		—		152		—		2,329		2,481
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	26,521	$	36,673	$	25,327	$	56,900	$	18,127	$	50,038	$	213,586

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and industrial loans	Pass	$	10,948	$	6,187	$	14,586	$	2,593	$	1,565	$	22,614	$	58,493
	Special Mention		—		159		782		174		38		—		1,153
	Substandard		—		116		191		59		260		243		869
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
	Subtotal	$	10,948	$	6,462	$	15,559	$	2,826	$	1,863	$	22,857	$	60,515

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total commercial	Pass	$	45,789	$	109,079	$	85,887	$	65,477	$	26,755	$	83,048	$	416,035
	Special Mention		—		691		2,558		518		38		1,448		5,253
	Substandard		—		116		191		211		260		2,572		3,350
	Doubtful		—		—		—		—		—		—		—
	Loss		—		—		—		—		—		—		—
		$	45,789	$	109,886	$	88,636	$	66,206	$	27,053	$	87,068	$	424,638

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—


		December 31, 2023
		Loans at Amortized Cost Basis by Origination Year
		2023		2022		2021		2020		2019		Prior		Total
		(Dollars in Thousands)
Consumer:

Secured by 1-4 family residential properties	Performing	$	4,230	$	20,172	$	14,986	$	6,675	$	8,950	$	20,334	$	75,347
	Non-performing		—		—		—		—		—		853		853
	Subtotal	$	4,230	$	20,172	$	14,986	$	6,675	$	8,950	$	21,187	$	76,200

	Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	97	$	97

Direct consumer	Performing	$	2,383	$	1,157	$	1,485	$	575	$	225	$	113	$	5,938
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	2,383	$	1,157	$	1,485	$	575	$	225	$	113	$	5,938

	Current period gross charge-offs	$	2	$	5	$	316	$	118	$	42	$	88	$	571

Branch retail	Performing	$	—	$	—	$	2,160	$	2,696	$	1,572	$	2,242	$	8,670
	Non-performing		—		—		—		—		—		—		—
	Subtotal	$	—	$	—	$	2,160	$	2,696	$	1,572	$	2,242	$	8,670

	Current period gross charge-offs	$	—	$	—	$	108	$	140	$	57	$	140	$	445

Indirect consumer	Performing	$	88,688	$	89,376	$	66,147	$	50,883	$	5,485	$	5,712	$	306,291
	Non-performing		—		—		54		—		—		—		54
	Subtotal	$	88,688	$	89,376	$	66,201	$	50,883	$	5,485	$	5,712	$	306,345

	Current period gross charge-offs	$	6	$	235	$	332	$	270	$	39	$	50	$	932

Total consumer:	Performing	$	95,301	$	110,705	$	84,778	$	60,829	$	16,232	$	28,401	$	396,246
	Non-performing		—		—		54		—		—		853		907
		$	95,301	$	110,705	$	84,832	$	60,829	$	16,232	$	29,254	$	397,153

	Current period gross charge-offs	$	8	$	240	$	756	$	528	$	138	$	375	$	2,045

Aging Analysis of Past Due Loans

The following table provides an aging analysis of past due loans by portfolio segment as of December 31, 2024:


	As of December 31, 2024
	30-59 Days Past Due			60-89 Days Past Due			90 Days Or Greater			Total Past Due			Current			Total Loans			Recorded Investment > 90 Days And Accruing
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans	$	—		$	—		$	—		$	—		$	65,537		$	65,537		$	—
Secured by 1-4 family residential properties		515			—			—			515			69,484			69,999			—
Secured by multi-family residential properties		—			—			—			—			101,057			101,057			—
Secured by non-farm, non-residential properties		—			—			—			—			227,751			227,751			—
Commercial and industrial loans		3,317			—			—			3,317			40,921			44,238			—
Consumer loans:
Direct		15			—			—			15			4,759			4,774			—
Branch retail		4			—			—			4			5,554			5,558
Indirect		485			47			—			532			303,593			304,125			—
Total	$	4,336		$	47		$	—		$	4,383		$	818,656		$	823,039		$	—
As a percentage of total loans		0.52	%		0.01	%		0.00	%		0.53	%		99.47	%		100.00	%

The following table provides an aging analysis of past due loans by portfolio segment as of December 31, 2023:


	As of December 31, 2023
	30-59 Days Past Due			60-89 Days Past Due			90 Days Or Greater			Total Past Due			Current			Total Loans			Recorded Investment > 90 Days And Accruing
	(Dollars in Thousands)
Loans secured by real estate:
Construction, land development and other land loans	$	—		$	—		$	—		$	—		$	88,140		$	88,140		$	—
Secured by 1-4 family residential properties		820			177			23			1,020			75,180			76,200			—
Secured by multi-family residential properties		—			—			—			—			62,397			62,397			—
Secured by non-farm, non-residential properties		—			—			1,302			1,302			212,284			213,586			—
Commercial and industrial loans		89			34			147			270			60,245			60,515			—
Consumer loans:
Direct		42			—			—			42			5,896			5,938			—
Branch retail		39			1			—			40			8,630			8,670
Indirect		316			33			54			403			305,942			306,345			—
Total	$	1,306		$	245		$	1,526		$	3,077		$	818,714		$	821,791		$	—
As a percentage of total loans		0.15	%		0.03	%		0.19	%		0.37	%		99.63	%		100.00	%

Non-accruing Loans

The tables below present the amortized cost of loans on nonaccrual status and loans past due 90 days or more and still accruing interest as of December 31, 2024 and 2023.


	Loans on Non-Accrual Status
	December 31, 2024
	(Dollars in Thousands)
	Total nonaccrual loans		Nonaccrual loans with no allowance for credit losses		Loans past due 90 days or more and still accruing
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		665		404		—
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		—		—		—
Commercial and industrial loans		3,284		—		—
Consumer loans:
Direct		—		—		—
Branch retail		—		—		—
Indirect		—		—		—
Total loans	$	3,949	$	404	$	—


	Loans on Non-Accrual Status
	December 31, 2023
	(Dollars in Thousands)
	Total nonaccrual loans		Nonaccrual loans with no allowance for credit losses		Loans past due 90 days or more and still accruing
Loans secured by real estate:
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		891		462		—
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		1,302		1,314		—
Commercial and industrial loans		152		77		—
Consumer loans:
Direct		—		—		—
Branch retail		—		—		—
Indirect		55		—		—
Total loans	$	2,400	$	1,853	$	—

Schedule of Amortized Cost Basis of Collateral Dependent Loans

The following tables present the amortized cost basis of collateral dependent loans as of December 31, 2024 and 2023, which loans are individually evaluated to determine credit losses:


	December 31, 2024
	Real Estate		Other		Total
	(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans	$	—	$	2,489	$	2,489
Secured by 1-4 family residential properties		1,402		—		1,402
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		383		—		383
Commercial and industrial		—		3,327		3,327
Direct consumer		—		—		—
Total loans individually evaluated	$	1,785	$	5,816	$	7,601


	December 31, 2023
	Real Estate		Other		Total
	(Dollars in Thousands)
Loans secured by real estate
Construction, land development and other land loans	$	—	$	—	$	—
Secured by 1-4 family residential properties		485		—		485
Secured by multi-family residential properties		—		—		—
Secured by non-farm, non-residential properties		2,333		—		2,333
Commercial and industrial		—		112		112
Direct consumer		—		—		—
Total loans individually evaluated	$	2,818	$	112	$	2,930