LOANS, ALLOWANCE FOR CREDIT LOSSES, AND CREDIT QUALITY

Summary of the activity in the ACL by loan type

A roll forward of the ACL-Loans is summarized as follows:


	Three Months Ended				Year Ended
	March 31, 2025		March 31, 2024		December 31, 2024
Beginning Balance	$	44,151	$	43,609	$	43,609
Provision for credit losses		400		200		100
Charge-offs		(836)		(52)		(566)
Recoveries		34		621		1,008
Net (charge-offs) recoveries		(802)		569		442
Ending Balance	$	43,749	$	44,378	$	44,151

A summary of the activity in the ACL - Loans by loan type for the three months ended March 31, 2025 is summarized as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -				Construction
	Commercial /		Owner		Non - Owner		Multi-		and		Residential
	Industrial		Occupied		Occupied		Family		Development		1-4 Family		Consumer		Other		Total
ACL - Loans - January 1, 2025	$	5,394	$	11,033	$	4,740	$	3,739	$	5,223	$	12,801	$	1,084	$	137	$	44,151
Charge-offs		—		(802)		—		—		—		(1)		(21)		(12)		(836)
Recoveries		—		—		—		—		—		30		—		4		34
Provision		(155)		190		(9)		435		96		(172)		10		5		400
ACL - Loans - March 31, 2025	$	5,239	$	10,421	$	4,731	$	4,174	$	5,319	$	12,658	$	1,073	$	134	$	43,749

A summary of the activity in the ACL – Loans by loan type for the three months ended March 31, 2024 is summarized as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -				Construction
	Commercial /		Owner		Non - Owner		Multi-		and		Residential
	Industrial		Occupied		Occupied		Family		Development		1-4 Family		Consumer		Other		Total
ACL - Loans - January 1, 2024	$	5,965	$	12,285	$	5,700	$	4,754	$	3,597	$	10,620	$	615	$	73	$	43,609
Charge-offs		(17)		(1)		—		—		—		(1)		(4)		(29)		(52)
Recoveries		2		611		—		—		—		3		—		5		621
Provision		(139)		547		381		(153)		(359)		(122)		(7)		52		200
ACL - Loans - March 31, 2024	$	5,811	$	13,442	$	6,081	$	4,601	$	3,238	$	10,500	$	604	$	101	$	44,378

Summary of past due loans

The Company’s past due and non-accrual loans as of March 31, 2025 is summarized as follows:


			90 Days						Non-Accrual
	30-89 Days		or more						with no
	Past Due		Past Due		Non-				related
	Accruing		and Accruing		Accrual		Total		allowance
Commercial/industrial	$	47	$	48	$	789	$	884	$	—
Commercial real estate - owner occupied		2,092		—		4,090		6,182		1,527
Commercial real estate - non-owner occupied		9		—		493		502		493
Multi-family		—		—		—		—		—
Construction and development		278		—		—		278		—
Residential 1‑4 family		3,513		346		988		4,847		988
Consumer		111		24		36		171		36
Other		—		—		—		—		—
	$	6,050	$	418	$	6,396	$	12,864	$	3,044

The Company’s past due and non-accrual loans as of December 31, 2024 is summarized as follows:


			90 Days						Non-Accrual
	30-89 Days		or more						with no
	Past Due		Past Due		Non-				related
	Accruing		and Accruing		Accrual		Total		allowance
Commercial/industrial	$	50	$	328	$	794	$	1,172	$	1
Commercial real estate - owner occupied		446		—		4,999		5,445		800
Commercial real estate - non-owner occupied		—		—		493		493		493
Multi-family		—		—		—		—		—
Construction and development		90		—		—		90		—
Residential 1‑4 family		1,317		1,294		511		3,122		511
Consumer		108		48		29		185		29
Other		—		—		—		—		—
	$	2,011	$	1,670	$	6,826	$	10,507	$	1,834

Schedule of loans by risk ratings and year of origination

The following tables present total loans by risk ratings and year of origination. Loans acquired from other previously acquired institutions have been included in the table based upon the actual origination date.


	Amortized Cost Basis by Origination Year
As of March 31, 2025																Revolving
		2025		2024		2023		2022		2021		Prior		Revolving		to Term		Total
Commercial/industrial
Grades 1-4	$	12,639	$	67,984	$	49,959	$	64,879	$	44,996	$	60,471	$	78,826	$	-	$	379,754
Grade 5		15,037		15,008		3,431		43,859		4,343		2,198		27,722		-		111,598
Grade 6		-		231		416		574		989		23		2,109		-		4,342
Grade 7		58		293		804		285		5,616		1,952		3,797		-		12,805
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	27,734	$	83,516	$	54,610	$	109,597	$	55,944	$	64,644	$	112,454	$	-	$	508,499
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - owner occupied
Grades 1-4	$	22,890	$	99,025	$	62,270	$	96,300	$	156,215	$	251,634	$	48,385	$	-	$	736,719
Grade 5		829		50,312		20,833		17,262		21,270		50,318		11,947		-		172,771
Grade 6		-		-		740		3,483		804		8,041		750		-		13,818
Grade 7		-		1,221		1,456		8,432		4,208		30,648		4,812		-		50,777
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	23,719	$	150,558	$	85,299	$	125,477	$	182,497	$	340,641	$	65,894	$	-	$	974,085
Current-period gross charge-offs	$	-	$	802	$	-	$	-	$	-	$	-	$	-	$	-	$	802
Commercial real estate - non-owner occupied
Grades 1-4	$	8,767	$	28,504	$	55,707	$	60,000	$	106,113	$	130,931	$	9,157	$	-	$	399,179
Grade 5		1,940		2,173		4,484		4,810		19,173		19,120		25		-		51,725
Grade 6		-		-		-		1,476		-		-		1,065		-		2,541
Grade 7		-		-		-		-		5,867		855		-		-		6,722
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	10,707	$	30,677	$	60,191	$	66,286	$	131,153	$	150,906	$	10,247	$	-	$	460,167
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multi-family
Grades 1-4	$	-	$	1,953	$	42,922	$	33,189	$	101,252	$	152,480	$	2,703	$	-	$	334,499
Grade 5		-		13,763		1,009		780		-		114		-		-		15,666
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		442		-		-		2,483		2,234		-		-		5,159
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	-	$	16,158	$	43,931	$	33,969	$	103,735	$	154,828	$	2,703	$	-	$	355,324
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and development
Grades 1-4	$	8,207	$	72,315	$	37,752	$	59,803	$	11,273	$	8,174	$	1,602	$	-	$	199,126
Grade 5		822		35,741		37,595		1,980		962		762		723		-		78,585
Grade 6		-		300		-		-		-		-		-		-		300
Grade 7		-		-		-		-		-		908		-		-		908
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	9,029	$	108,356	$	75,347	$	61,783	$	12,235	$	9,844	$	2,325	$	-	$	278,919
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential 1‑4 family
Grades 1-4	$	13,647	$	96,388	$	91,948	$	171,187	$	171,970	$	231,187	$	98,342	$	-	$	874,669
Grade 5		1,572		2,451		2,809		6,274		1,953		3,906		1,710		-		20,675
Grade 6		-		-		182		336		-		192		-		-		710
Grade 7		-		-		-		533		1,252		3,987		1,182		-		6,954
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	15,219	$	98,839	$	94,939	$	178,330	$	175,175	$	239,272	$	101,234	$	-	$	903,008
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	-	$	1
Consumer
Grades 1-4	$	9,402	$	18,818	$	11,536	$	7,007	$	3,273	$	3,729	$	713	$	-	$	54,478
Grade 5		-		-		-		-		-		-		-		-		-
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		21		2		3		10		33		-		-		69
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	9,402	$	18,839	$	11,538	$	7,010	$	3,283	$	3,762	$	713	$	-	$	54,547
Current-period gross charge-offs	$	-	$	-	$	9	$	12	$	-	$	-	$	-	$	-	$	21
Other
Grades 1-4	$	160	$	1,725	$	100	$	548	$	456	$	9,175	$	2,608	$	-	$	14,772
Grade 5		-		-		46		29		-		-		196		-		271
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		-		-		-		-
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	160	$	1,725	$	146	$	577	$	456	$	9,175	$	2,804	$	-	$	15,043
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	12	$	-	$	12

Total Loans	$	95,970	$	508,668	$	426,001	$	583,029	$	664,478	$	973,072	$	298,374	$	-	$	3,549,592
Total current-period gross charge-offs	$	-	$	802	$	9	$	12	$	-	$	1	$	12	$	-	$	836


	Amortized Cost Basis by Origination Year
As of December 31, 2024																Revolving
		2024		2023		2022		2021		2020		Prior		Revolving		to Term		Total
Commercial/industrial
Grades 1-4	$	82,243	$	55,703	$	66,599	$	49,142	$	44,118	$	21,121	$	77,853	$	-	$	396,779
Grade 5		16,551		3,076		45,395		4,508		2,266		318		16,574		-		88,688
Grade 6		274		403		608		1,027		7		-		541		-		2,860
Grade 7		362		854		316		5,766		416		752		4,249		-		12,715
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	99,430	$	60,036	$	112,918	$	60,443	$	46,807	$	22,191	$	99,217	$	-	$	501,042
Current-period gross charge-offs	$	-	$	-	$	9	$	15	$	-	$	2	$	-	$	-	$	26
Commercial real estate - owner occupied
Grades 1-4	$	92,953	$	63,421	$	105,388	$	161,227	$	93,903	$	177,068	$	41,293	$	-	$	735,253
Grade 5		48,644		21,142		19,031		20,585		8,741		42,643		8,902		-		169,688
Grade 6		-		-		3,095		1,674		5,658		1,931		3,468		-		15,826
Grade 7		149		840		8,633		3,444		3,594		28,997		2,989		-		48,646
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	141,746	$	85,403	$	136,147	$	186,930	$	111,896	$	250,639	$	56,652	$	-	$	969,413
Current-period gross charge-offs	$	-	$	-	$	-	$	293	$	-	$	1	$	-	$	-	$	294
Commercial real estate - non-owner occupied
Grades 1-4	$	27,703	$	54,919	$	61,803	$	123,875	$	47,293	$	96,008	$	9,883	$	-	$	421,484
Grade 5		1,723		1,935		2,827		2,627		3,502		13,008		-		-		25,622
Grade 6		-		-		1,489		-		-		2,590		1,565		-		5,644
Grade 7		-		-		-		5,906		351		509		-		-		6,766
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	29,426	$	56,854	$	66,119	$	132,408	$	51,146	$	112,115	$	11,448	$	-	$	459,516
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - multi-family
Grades 1-4	$	1,724	$	26,209	$	32,891	$	100,950	$	71,584	$	82,936	$	3,385	$	-	$	319,679
Grade 5		779		1,014		1,307		994		-		118		-		-		4,212
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		442		-		-		-		-		2,240		-		-		2,682
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	2,945	$	27,223	$	34,198	$	101,944	$	71,584	$	85,294	$	3,385	$	-	$	326,573
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and development
Grades 1-4	$	66,756	$	45,018	$	60,063	$	11,608	$	3,666	$	4,921	$	1,566	$	-	$	193,598
Grade 5		23,486		52,351		2,529		1,033		603		199		522		-		80,723
Grade 6		233		-		-		-		-		-		-		-		233
Grade 7		-		676		-		2,489		160		760		-		-		4,085
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	90,475	$	98,045	$	62,592	$	15,130	$	4,429	$	5,880	$	2,088	$	-	$	278,639
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential 1‑4 family
Grades 1-4	$	98,107	$	96,939	$	179,313	$	176,752	$	139,663	$	100,537	$	93,957	$	-	$	885,268
Grade 5		2,785		2,971		6,266		2,221		3,017		1,621		1,064		-		19,945
Grade 6		-		151		350		-		-		197		-		-		698
Grade 7		-		-		537		1,282		854		2,900		1,501		-		7,074
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	100,892	$	100,061	$	186,466	$	180,255	$	143,534	$	105,255	$	96,522	$	-	$	912,985
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	44	$	-	$	-	$	44
Consumer
Grades 1-4	$	25,766	$	12,581	$	8,063	$	3,825	$	2,774	$	1,624	$	466	$	-	$	55,099
Grade 5		-		-		-		-		-		-		-		-		-
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		10		11		15		9		-		20		-		-		65
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	25,776	$	12,592	$	8,078	$	3,834	$	2,774	$	1,644	$	466	$	-	$	55,164
Current-period gross charge-offs	$	88	$	15	$	4	$	-	$	3	$	-	$	-	$	-	$	110
Other
Grades 1-4	$	1,901	$	119	$	573	$	483	$	605	$	9,070	$	2,557	$	-	$	15,308
Grade 5		-		50		31		-		-		-		204		-		285
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		-		-		-		-
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	1,901	$	169	$	604	$	483	$	605	$	9,070	$	2,761	$	-	$	15,593
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	92	$	-	$	92

Total Loans	$	492,591	$	440,383	$	607,122	$	681,427	$	432,775	$	592,088	$	272,539	$	-	$	3,518,925
Total current-period gross charge-offs	$	88	$	15	$	13	$	308	$	3	$	47	$	92	$	-	$	566