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Loans And Leases | 9 Months Ended
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Sep. 30, 2025
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] |
Loans And Leases | 4. LOANS AND LEASES Portfolio Segments The Company has divided the loan portfolio into the following portfolio segments based on risk characteristics: Construction, land development and other land loans – Commercial construction, land and land development loans include loans for the development of residential housing projects, loans for the development of commercial and industrial use property, loans for the purchase and improvement of raw land and loans primarily for agricultural production that are secured by farmland. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrowing entity. Secured by 1-4 family residential properties – These loans include conventional mortgage loans on one-to-four family residential properties. These properties may serve as the borrower’s primary residence, vacation home or investment property. Also included in this portfolio are home equity loans and lines of credit. This type of lending, which is secured by a first or second mortgage on the borrower’s residence, allows customers to borrow against the equity in their home. Secured by multi-family residential properties – This portfolio segment includes mortgage loans secured by apartment buildings. Secured by non-residential commercial real estate – This portfolio segment includes real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers or other commercial property. These loans are generally guaranteed by the principals of the borrowing entity. Commercial and industrial loans and leases – This portfolio segment includes loans and leases to commercial customers for use in the normal course of business. These credits may be loans, lines of credit and leases to financially strong borrowers, secured by inventories, equipment or receivables, and are generally guaranteed by the principals of the borrowing entity. Direct consumer – This portfolio segment includes a variety of secured and unsecured personal loans, including automobile loans, loans for household and personal purposes and all other direct consumer installment loans. Indirect consumer – This portfolio segment includes loans secured by collateral purchased by consumers at retail stores with whom the Company has an established relationship to provide financing for the retail products sold if applicable underwriting standards are met. The collateral securing these loans primarily includes boats, recreational vehicles/campers, horse trailers and cargo trailers. As of September 30, 2025 and December 31, 2024, the composition of the loan portfolio by portfolio segment was as follows:
| September 30, 2025 |  | December 31, 2024 |
Real estate loans: |  |  |  |
Construction, land development and other land loans | $ | 38,560 |  | $ | 65,537 |
Secured by 1-4 family residential properties |  | 67,620 |  |  | 69,999 |
Secured by multi-family residential properties |  | 112,763 |  |  | 101,057 |
Secured by non-residential commercial real estate |  | 211,400 |  |  | 227,751 |
Commercial and industrial loans and leases ("C&I") (1) |  | 46,562 |  |  | 44,238 |
Consumer loans: |  |  |  |
Direct |  | 4,999 |  |  | 4,774 |
Indirect |  | 385,616 |  |  | 309,683 |
Total loans |  | 867,520 |  |  | 823,039 |
Less: Allowance for credit losses on loans and leases |  | 10,700 |  |  | 10,184 |
Net loans (2) | $ | 856,820 |  | $ | 812,855 |
(1) Includes equipment financing leases, which totaled $13.4 million as of September 30, 2025 and $14.2 million as of December 31, 2024. (2) Loans are presented net of unearned income and unamortized deferred fees and costs of $0.7 million and $0.8 million as of September 30, 2025 and December 31, 2024, respectively. Loans are also presented net of unamortized premiums associated with indirect loans of $15.8 million and $10.6 million as of September 30, 2025 and December 31, 2024, respectively. Accrued interest receivable is not included in the amortized cost basis of the Company's loans held for investment ("LHFI"). As of September 30, 2025 and December 31, 2024, accrued interest receivable for LHFI totaled $3.2 mil lion and $2.8 million, respectively, with no related ACL and was reported in the accrued interest line on the accompanying consolidated balance sheets. The Company makes commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 49.6% and 56.4% of the portfolio was concentrated in loans secured by real estate as of September 30, 2025 and December 31, 2024, respectively. Loans with a carrying value of $86.5 million and $92.6 million were pledged as collateral to secure Federal Home Loan Bank (“FHLB”) borrowings as of September 30, 2025 and December 31, 2024, respectively. In addition, loans with a carrying value of $363.9 million and $285.2 million were pledged to secure borrowings with the Federal Reserve Bank ("FRB") as of September 30, 2025 and December 31, 2024, respectively. Related Party Loans In the ordinary course of business, the Bank makes loans to certain officers and directors of the Company, including companies with which they are associated. These loans are made on the same terms as those prevailing for comparable transactions with unrelated parties. Management believes that such loans do not represent more than a normal risk of collectability, nor do they present other unfavorable features. The aggregate balances of such related party loans and commitments were $22.9 million and $11.4 million as of September 30, 2025 and December 31, 2024, respectively. During the nine months ended September 30, 2025, there were new loans of $11.5 million to related parties, and no repayments made by related parties. During the year ended December 31, 2024, there were new loans of $1.4 million to related parties, and repayments made of $1.4 million by related parties. Allowance for Credit Losses Allowance for Credit Losses on Loans and Leases The Company records the ACL on loans and leases as a contra-asset valuation account that is deducted from the amortized cost basis of loans and leases held for investment. Loans are charged off against the ACL when management believes that the uncollectibility of a loan balance is confirmed. Recoveries of previously charged off loans are also recorded to the ACL when collected. As of each quarter-end date, the Company evaluates the appropriateness of the ACL on loans and leases and adjusts the ACL through the provision for (recovery of) credit losses. Determining the appropriateness of the ACL on loans and leases is complex and requires judgment by management about the effects of matters that are inherently uncertain. The level of the ACL is influenced by loan and lease volumes and mix, historical credit loss experience, estimated remaining life of portfolio segments, asset quality characteristics, delinquency status, and other conditions including reasonable and supportable forecasts of economic conditions and qualitative adjustment factors based on management’s understanding of various attributes that could impact life-of-loan losses as of the balance sheet date. The methodology to estimate losses includes two basic components: (1) an asset-specific component for individual loans that do not share similar risk characteristics with other loans, and (2) a pooled component for estimated expected credit losses for loans that share similar risk characteristics. Loans that do not share risk characteristics with other loans are evaluated on an individual basis. The process for determining whether a loan should be evaluated on an individual basis begins with a determination of credit rating. All loans graded by management as substandard or worse with a total commitment of $0.5 million or more are evaluated on an individual basis. At management's discretion, other loans may be evaluated, including loans less than $0.5 million, if management determines that the loans exhibit unique risk characteristics. For loans individually evaluated, the ACL is based primarily on the fair value of the underlying collateral, less any estimated costs to sell, as applicable, utilizing independent third-party appraisals, and assessment of borrower guarantees. The fair value is compared to the amortized cost basis of the loan to determine if an ACL should be recognized. For estimating the component of the ACL that shares similar risk characteristics, loans are segregated into pooled loan categories that share risk characteristics. Loans are designated into pooled categories based on product types, business lines, collateral, and other risk characteristics. For all pooled loan categories, the Company uses a loss-rate methodology to calculate estimated life-of-loan and lease credit losses. This methodology focuses on historical credit loss rates applied over the estimated weighted average remaining life of each loan pool, adjusted by qualitative factors, to estimate life-of-loan losses for each pool. The qualitative factors utilized include, among others, reasonable and supportable forecasts of economic data, including inflation, unemployment levels, and interest rates. Allowance for Credit Losses on Unfunded Lending Commitments The Company records an ACL on unfunded lending commitments in which the Company is exposed to credit risk via a present contractual obligation to extend credit unless the obligation is unconditionally cancellable by the Company. Unconditional lending commitments generally include unfunded term loan agreements, home equity lines of credit, lines of credit, and demand deposit account overdraft protection. As of each quarter-end date, the Company estimates expected credit losses on unfunded lending commitments 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 ACL on unfunded lending commitments is recorded in other liabilities, and adjustments to the ACL are recorded through the provision for (recovery of) credit losses. Summary of Allowances for Credit Losses The following tables present changes in the ACL on loans and leases, as well as unfunded lending commitments, during the nine months ended September 30, 2025 and 2024:
|  | As of and for the Nine Months Ended September 30, 2025 |
|  | Construction, Land Development, and Other |  |  | Real Estate 1-4 Family |  |  | Real Estate Multi- Family |  |  | Non- Residential Commercial Real estate |  |  | Commercial and Industrial |  |  | Direct Consumer |  |  | Indirect Consumer |  |  | Total |
|  | (Dollars in Thousands) |
Allowance for credit losses on loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 352 |  |  | $ | 406 |  |  | $ | 546 |  |  | $ | 1,428 |  |  | $ | 1,531 |  |  | $ | 49 |  |  | $ | 5,872 |  |  | $ | 10,184 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,215 | ) |  |  | (5 | ) |  |  | (1,428 | ) |  |  | (3,648 | )
Recoveries |  |  | — |  |  |  | 21 |  |  |  | — |  |  |  | — |  |  |  | 16 |  |  |  | 149 |  |  |  | 163 |  |  |  | 349 |
Provision for (recovery of) credit losses on loans and leases |  |  | (90 | ) |  |  | (41 | ) |  |  | 97 |  |  |  | 142 |  |  |  | 1,072 |  |  |  | (135 | ) |  |  | 2,770 |  |  |  | 3,815 |
Allowance for credit losses on loans and leases |  | $ | 262 |  |  | $ | 386 |  |  | $ | 643 |  |  | $ | 1,570 |  |  | $ | 404 |  |  | $ | 58 |  |  | $ | 7,377 |  |  | $ | 10,700 |
Allowance for credit losses on unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 280 |  |  | $ | 1 |  |  | $ | 43 |  |  | $ | 16 |  |  | $ | 34 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 376 |
Provision for (recovery of) credit losses on unfunded lending commitments |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | (10 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4 | )
Allowance for credit losses on unfunded lending commitments |  | $ | 286 |  |  | $ | 1 |  |  | $ | 43 |  |  | $ | 6 |  |  | $ | 34 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 372 |
|  | As of and for the Nine Months Ended September 30, 2024 |
|  | Construction, Land Development, and Other |  |  | Real Estate 1-4 Family |  |  | Real Estate Multi- Family |  |  | Non- Residential Commercial Real estate |  |  | Commercial and Industrial |  |  | Direct Consumer |  |  | Indirect Consumer |  |  | Total |
|  | (Dollars in Thousands) |
Allowance for credit losses on loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 565 |  |  | $ | 591 |  |  | $ | 415 |  |  | $ | 1,425 |  |  | $ | 513 |  |  | $ | 64 |  |  | $ | 6,934 |  |  | $ | 10,507 |
Charge-offs |  |  | — |  |  |  | (2 | ) |  |  | — |  |  |  | — |  |  |  | (113 | ) |  |  | (53 | ) |  |  | (1,049 | ) |  |  | (1,217 | )
Recoveries |  |  | 20 |  |  |  | 46 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 249 |  |  |  | 259 |  |  |  | 574 |
Provision for (recovery of) credit losses on loans and leases |  |  | (249 | ) |  |  | (171 | ) |  |  | 261 |  |  |  | 322 |  |  |  | 342 |  |  |  | (209 | ) |  |  | (44 | ) |  |  | 252 |
Allowance for credit losses on loans and leases |  | $ | 336 |  |  | $ | 464 |  |  | $ | 676 |  |  | $ | 1,747 |  |  | $ | 742 |  |  | $ | 51 |  |  | $ | 6,100 |  |  | $ | 10,116 |
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 |  |  | (115 | ) |  |  | (1 | ) |  |  | 50 |  |  |  | 25 |  |  |  | (59 | ) |  |  | — |  |  |  | — |  |  |  | (100 | )
Allowance for credit losses on unfunded lending commitments |  | $ | 335 |  |  | $ | — |  |  | $ | 59 |  |  | $ | 27 |  |  | $ | 43 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 469 |
Credit Quality Indicators The Company utilizes a credit grading system that provides a uniform framework for establishing and monitoring credit risk in the loan portfolio. Under this system, construction, land, multi-family real estate, other commercial real estate, and commercial and industrial loans are graded based on pre-determined risk metrics and categorized into one of nine risk grades. These risk grades can be summarized into categories described as pass, special mention, substandard, doubtful and loss, as described in further detail below. • Pass (Risk Grades 1-5): Loans in this category include obligations in which the probability of default is considered low. • Special Mention (Risk Grade 6): Loans in this category exhibit potential credit weaknesses or downward trends deserving management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Although a special mention asset has a higher probability of default than pass-rated categories, its default is not imminent. • Substandard (Risk Grade 7): Loans in this category have defined weaknesses that jeopardize the orderly liquidation of debt. A substandard loan is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. There is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard. • Doubtful (Risk Grade 8): Loans classified as doubtful have all of the weaknesses found in substandard loans, with the added characteristic that the weaknesses make collection of debt in full, based on currently existing facts, conditions and values, highly questionable or improbable. Serious problems exist such that partial loss of principal is likely; however, because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined. Such pending factors may include proposed merger, acquisition or liquidation procedures, capital injection, perfection of liens on additional collateral and refinancing plans. Loans classified as doubtful may include loans to borrowers that have demonstrated a history of failing to live up to agreements. • Loss (Risk Grade 9): Loans are classified in this category when borrowers are deemed incapable of repayment of unsecured debt. Loans to such borrowers are considered uncollectable and of such little value that continuance as active assets of the Company is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not prudent to defer writing off these assets, even though partial recovery may be realized in the future. The Company did not have any loans classified as Loss (Risk Grade 9) as of September 30, 2025 or December 31, 2024. Because residential real estate and consumer loans are more uniform in nature, each loan is categorized into one of two risk grades, depending on whether the loan is considered to be performing or nonperforming. Performing loans are loans that are paying principal and interest in accordance with a contractual agreement. Nonperforming loans are loans that have demonstrated characteristics that indicate a probability of loss. The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of September 30, 2025, as well as gross charge-offs for the nine months ended September 30, 2025.
|  |  |  | September 30, 2025 |
|  |  |  | Loans at Amortized Cost Basis by Origination Year |  |  |  |
|  |  |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Total |
|  |  |  | (Dollars in Thousands) |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, land development and other land loans |  | Pass |  | $ | 1,852 |  |  | $ | 8,099 |  |  | $ | 14,000 |  |  | $ | 7,753 |  |  | $ | 6 |  |  | $ | 105 |  |  | $ | 31,815 |
|  | Special Mention |  |  | — |  |  |  | 4,416 |  |  |  | — |  |  |  | — |  |  |  | 25 |  |  |  | — |  |  |  | 4,441 |
|  | Substandard |  |  | — |  |  |  | — |  |  |  | 2,304 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,304 |
|  | Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Subtotal |  | $ | 1,852 |  |  | $ | 12,515 |  |  | $ | 16,304 |  |  | $ | 7,753 |  |  | $ | 31 |  |  | $ | 105 |  |  | $ | 38,560 |
|  | Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Secured by multi-family residential properties |  | Pass |  | $ | 1,025 |  |  | $ | 201 |  |  | $ | 381 |  |  | $ | 65,771 |  |  | $ | 13,601 |  |  | $ | 23,808 |  |  | $ | 104,787 |
|  | Special Mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,976 |  |  |  | — |  |  |  | — |  |  |  | 7,976 |
|  | Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Subtotal |  | $ | 1,025 |  |  | $ | 201 |  |  | $ | 381 |  |  | $ | 73,747 |  |  | $ | 13,601 |  |  | $ | 23,808 |  |  | $ | 112,763 |
|  | Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Secured by non-residential commercial real estate |  | Pass |  | $ | 11,257 |  |  | $ | 25,271 |  |  | $ | 16,221 |  |  | $ | 21,959 |  |  | $ | 35,191 |  |  | $ | 96,966 |  |  | $ | 206,865 |
|  | Special Mention |  |  | — |  |  |  | — |  |  |  | 540 |  |  |  | 2,849 |  |  |  | — |  |  |  | 326 |  |  |  | 3,715 |
|  | Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 457 |  |  |  | 363 |  |  |  | 820 |
|  | Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Subtotal |  | $ | 11,257 |  |  | $ | 25,271 |  |  | $ | 16,761 |  |  | $ | 24,808 |  |  | $ | 35,648 |  |  | $ | 97,655 |  |  | $ | 211,400 |
|  | Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial and industrial loans and leases |  | Pass |  | $ | 11,215 |  |  | $ | 14,191 |  |  | $ | 4,641 |  |  | $ | 2,575 |  |  | $ | 3,935 |  |  | $ | 9,835 |  |  | $ | 46,392 |
|  | Special Mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 18 |  |  |  | 45 |  |  |  | — |  |  |  | 63 |
|  | Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 107 |  |  |  | 107 |
|  | Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Subtotal |  | $ | 11,215 |  |  | $ | 14,191 |  |  | $ | 4,641 |  |  | $ | 2,593 |  |  | $ | 3,980 |  |  | $ | 9,942 |  |  | $ | 46,562 |
|  | Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | 2,215 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,215 |
Total commercial |  | Pass |  | $ | 25,349 |  |  | $ | 47,762 |  |  | $ | 35,243 |  |  | $ | 98,058 |  |  | $ | 52,733 |  |  | $ | 130,714 |  |  | $ | 389,859 |
|  | Special Mention |  |  | — |  |  |  | 4,416 |  |  |  | 540 |  |  |  | 10,843 |  |  |  | 70 |  |  |  | 326 |  |  |  | 16,195 |
|  | Substandard |  |  | — |  |  |  | — |  |  |  | 2,304 |  |  |  | — |  |  |  | 457 |  |  |  | 470 |  |  |  | 3,231 |
|  | Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  |  | $ | 25,349 |  |  | $ | 52,178 |  |  | $ | 38,087 |  |  | $ | 108,901 |  |  | $ | 53,260 |  |  | $ | 131,510 |  |  | $ | 409,285 |
|  | Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | 2,215 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,215 |
|  |  |  | September 30, 2025 |
|  |  |  | Loans at Amortized Cost Basis by Origination Year |  |  |  |
|  |  |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Total |
|  |  |  | (Dollars in Thousands) |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured by 1-4 family residential properties |  | Performing |  | $ | 4,206 |  |  | $ | 5,045 |  |  | $ | 2,979 |  |  | $ | 17,345 |  |  | $ | 14,093 |  |  | $ | 23,359 |  |  | $ | 67,027 |
|  | Non-performing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 593 |  |  |  | 593 |
|  | Subtotal |  | $ | 4,206 |  |  | $ | 5,045 |  |  | $ | 2,979 |  |  | $ | 17,345 |  |  | $ | 14,093 |  |  | $ | 23,952 |  |  | $ | 67,620 |
|  | Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Direct |  | Performing |  | $ | 2,533 |  |  | $ | 1,354 |  |  | $ | 557 |  |  | $ | 185 |  |  | $ | 223 |  |  | $ | 143 |  |  | $ | 4,995 |
|  | Non-performing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | 4 |
|  | Subtotal |  | $ | 2,533 |  |  | $ | 1,354 |  |  | $ | 557 |  |  | $ | 185 |  |  | $ | 227 |  |  | $ | 143 |  |  | $ | 4,999 |
|  | Current period gross charge-offs |  | $ | — |  |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 5 |
Indirect |  | Performing |  | $ | 125,127 |  |  | $ | 47,928 |  |  | $ | 60,530 |  |  | $ | 62,932 |  |  | $ | 46,774 |  |  | $ | 42,219 |  |  | $ | 385,510 |
|  | Non-performing |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | 10 |  |  |  | 73 |  |  |  | 106 |
|  | Subtotal |  | $ | 125,127 |  |  | $ | 47,951 |  |  | $ | 60,530 |  |  | $ | 62,932 |  |  | $ | 46,784 |  |  | $ | 42,292 |  |  | $ | 385,616 |
|  | Current period gross charge-offs |  | $ | 10 |  |  | $ | 95 |  |  | $ | 203 |  |  | $ | 449 |  |  | $ | 277 |  |  | $ | 394 |  |  | $ | 1,428 |
Total consumer |  | Performing |  | $ | 131,866 |  |  | $ | 54,327 |  |  | $ | 64,066 |  |  | $ | 80,462 |  |  | $ | 61,090 |  |  | $ | 65,721 |  |  | $ | 457,532 |
|  | Non-performing |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | 14 |  |  |  | 666 |  |  |  | 703 |
|  |  |  | $ | 131,866 |  |  | $ | 54,350 |  |  | $ | 64,066 |  |  | $ | 80,462 |  |  | $ | 61,104 |  |  | $ | 66,387 |  |  | $ | 458,235 |
|  | Current period gross charge-offs |  | $ | 10 |  |  | $ | 99 |  |  | $ | 203 |  |  | $ | 449 |  |  | $ | 278 |  |  | $ | 394 |  |  | $ | 1,433 |
The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of December 31, 2024, as well as gross charge-offs for the year ended 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-residential commercial real estate |  | 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 |  | 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 consumer |  | 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 |
Indirect consumer |  | Performing |  | $ | 54,546 |  |  | $ | 72,461 |  |  | $ | 74,514 |  |  | $ | 55,904 |  |  | $ | 41,908 |  |  | $ | 10,350 |  |  | $ | 309,683 |
|  | Non-performing |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | Subtotal |  | $ | 54,546 |  |  | $ | 72,461 |  |  | $ | 74,514 |  |  | $ | 55,904 |  |  | $ | 41,908 |  |  | $ | 10,350 |  |  | $ | 309,683 |
|  | Current period gross charge-offs |  | $ | 21 |  |  | $ | 95 |  |  | $ | 278 |  |  | $ | 531 |  |  | $ | 329 |  |  | $ | 127 |  |  | $ | 1,381 |
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 following table provides an aging analysis of past due loans by class as of September 30, 2025:
|  | As of September 30, 2025 |
|  | 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 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 38,560 |  |  | $ | 38,560 |  |  | $ | — |
Secured by 1-4 family residential properties |  |  | 7 |  |  |  | 5 |  |  |  | 362 |  |  |  | 374 |  |  |  | 67,246 |  |  |  | 67,620 |  |  |  | — |
Secured by multi-family residential properties |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 112,763 |  |  |  | 112,763 |  |  |  | — |
Secured by non-residential commercial real estate |  |  | — |  |  |  | — |  |  |  | 363 |  |  |  | 363 |  |  |  | 211,037 |  |  |  | 211,400 |  |  |  | — |
Commercial and industrial loans |  |  | — |  |  |  | 25 |  |  |  | — |  |  |  | 25 |  |  |  | 46,537 |  |  |  | 46,562 |  |  |  | — |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |
Direct |  |  | 1 |  |  |  | — |  |  |  | 4 |  |  |  | 5 |  |  |  | 4,994 |  |  |  | 4,999 |  |  |  | — |
Indirect |  |  | 614 |  |  |  | 254 |  |  |  | 83 |  |  |  | 951 |  |  |  | 384,665 |  |  |  | 385,616 |  |  |  | — |
Total |  | $ | 622 |  |  | $ | 284 |  |  | $ | 812 |  |  | $ | 1,718 |  |  | $ | 865,802 |  |  | $ | 867,520 |  |  | $ | — |
As a percentage of total loans |  |  | 0.07 | % |  |  | 0.04 | % |  |  | 0.09 | % |  |  | 0.20 | % |  |  | 99.80 | % |  |  | 100.00 | % |  |  |
The following table provides an aging analysis of past due loans by class 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-residential commercial real estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 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 |  |  |  | — |
Indirect |  |  | 489 |  |  |  | 47 |  |  |  | — |  |  |  | 536 |  |  |  | 309,147 |  |  |  | 309,683 |  |  |  | — |
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 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 September 30, 2025 and December 31, 2024. Also presented is the balance of loans on nonaccrual status at September 30, 2025 and December 31, 2024 for which there was no related ACL recorded.
|  | Loans on Non-Accrual Status |
|  | September 30, 2025 |
|  | (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 |  |  | 593 |  |  | 374 |  |  | — |
Secured by multi-family residential properties |  |  | — |  |  | — |  |  | — |
Secured by non-residential commercial real estate |  |  | 363 |  |  | — |  |  | — |
Commercial and industrial loans |  |  | — |  |  | — |  |  | — |
Consumer loans: |  |  |  |  |  |  | — |
Direct |  |  | 4 |  |  | — |  |  | — |
Indirect |  |  | 106 |  |  | — |  |  | — |
Total loans |  | $ | 1,066 |  | $ | 374 |  | $ | — |
|  | 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-residential commercial real estate |  |  | — |  |  | — |  |  | — |
Commercial and industrial loans |  |  | 3,284 |  |  | — |  |  | — |
Consumer loans: |  |  |  |  |  |  | — |
Direct |  |  | — |  |  | — |  |  | — |
Indirect |  |  | — |  |  | — |  |  | — |
Total loans |  | $ | 3,949 |  | $ | 404 |  | $ | — |
The following tables present the amortized cost basis of collateral dependent loans as of September 30, 2025 and December 31, 2024, which loans are individually evaluated to determine credit losses:
|  | September 30, 2025 |
|  | Real Estate |  |  | Other |  |  | Total |
|  | (Dollars in Thousands) |
Loans secured by real estate |  |  |  |  |  |  |  |  |
Construction, land development and other land loans |  | $ | 2,304 |  |  | $ | — |  |  | $ | 2,304 |
Secured by 1-4 family residential properties |  |  | 391 |  |  |  | — |  |  |  | 391 |
Secured by multi-family residential properties |  |  | — |  |  |  | — |  |  |  | — |
Secured by non-residential commercial real estate |  |  | 363 |  |  |  | — |  |  |  | 363 |
Commercial and industrial |  |  | — |  |  |  | 39 |  |  |  | 39 |
Direct consumer |  |  | — |  |  |  | — |  |  |  | — |
Total loans individually evaluated |  | $ | 3,058 |  |  | $ | 39 |  |  | $ | 3,097 |
|  | 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-residential commercial real estate |  |  | 383 |  |  |  | — |  |  |  | 383 |
Commercial and industrial |  |  | — |  |  |  | 3,327 |  |  |  | 3,327 |
Direct consumer |  |  | — |  |  |  | — |  |  |  | — |
Total loans individually evaluated |  | $ | 4,274 |  |  | $ | 3,327 |  |  | $ | 7,601 |
Loan Modifications Made to Borrowers Experiencing Financial Difficulty From time to time, the Company may modify the terms of loan agreements with borrowers that are experiencing financial difficulties. Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modifications in 2025 or 2024 resulted in the permanent reduction of the recorded investment in the loan. During the nine months ended September 30, 2025 and the year ended December 31, 2024, the Company did not modify any loans to borrowers experiencing financial difficulty, and there were no payment defaults on loans that were modified in the previous twelve months.

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