| Loans |
The composition of the loan portfolio at March 31, 2025 and December 31, 2024 is as follows (in thousands): | | | | | | | | | | March 31, 2025 | | December 31, 2024 | | Real estate, residential | | $ | 80,363 | | $ | 78,952 | | Real estate, construction | | | 17,538 | | | 17,016 | | Real estate, nonresidential | | | 110,514 | | | 114,263 | | Commercial and industrial | | | 12,359 | | | 13,381 | | Other | | | 10,871 | | | 9,964 | | Total | | $ | 231,645 | | $ | 233,576 | |
The age analysis of the loan portfolio, segregated by class of loans, as of March 31, 2025, and December 31, 2024 is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans Past | | | | | | | | | | | | | | | | | | | | | Due Greater | | | Number of Days Past Due | | | | | | | | | | | Than 90 | | | | | | | | | Greater | | Total | | | | | Total | | Days and | | | 30 - 59 | | 60 - 89 | | Than 90 | | Past Due | | Current | | Loans | | Still Accruing | March 31, 2025: | | | | | | | | | | | | | | | | | | | | | | Real estate, residential | | $ | 1,285 | | $ | 98 | | $ | 292 | | $ | 1,675 | | $ | 78,688 | | $ | 80,363 | | $ | 61 | Real estate, construction | | | 136 | | | — | | | — | | | 136 | | | 17,402 | | | 17,538 | | | — | Real estate, nonresidential | | | 350 | | | — | | | — | | | 350 | | | 110,164 | | | 110,514 | | | — | Commercial and industrial | | | 18 | | | — | | | 21 | | | 39 | | | 12,320 | | | 12,359 | | | — | Other | | | 27 | | | — | | | — | | | 27 | | | 10,844 | | | 10,871 | | | — | Total | | $ | 1,816 | | $ | 98 | | $ | 313 | | $ | 2,227 | | $ | 229,418 | | $ | 231,645 | | $ | 61 | December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | Real estate, residential | | $ | 410 | | $ | 33 | | $ | 337 | | $ | 780 | | $ | 78,172 | | $ | 78,952 | | $ | — | Real estate, construction | | | 61 | | | — | | | — | | | 61 | | | 16,955 | | | 17,016 | | | — | Real estate, nonresidential | | | 749 | | | — | | | — | | | 749 | | | 113,514 | | | 114,263 | | | — | Commercial and industrial | | | 40 | | | 11 | | | — | | | 51 | | | 13,330 | | | 13,381 | | | — | Other | | | 20 | | | 10 | | | — | | | 30 | | | 9,934 | | | 9,964 | | | — | Total | | $ | 1,280 | | $ | 54 | | $ | 337 | | $ | 1,671 | | $ | 231,905 | | $ | 233,576 | | $ | — |
The Company monitors the credit quality of its loan portfolio through the use of a loan grading system. A score of 1 – 5 is assigned to the loan based on factors including repayment ability, trends in net worth and/or financial condition of the borrower and guarantors, employment stability, management ability, loan to value fluctuations, the type and structure of the loan, conformity of the loan to bank policy and payment performance. Based on the total score, a loan grade of A, B, C, S, D, E or F is applied. A grade of A will generally be applied to loans for customers that are well known to the Company and that have excellent sources of repayment. A grade of B will generally be applied to loans for customers that have excellent sources of repayment which have no identifiable risk of collection. A grade of C will generally be applied to loans for customers that have adequate sources of repayment which have little identifiable risk of collection. A grade of S will generally be applied to loans for customers who meet the criteria for a grade of C but also warrant additional monitoring by placement on the watch list. A grade of D will generally be applied to loans for customers that are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans with a grade of D have unsatisfactory characteristics such as cash flow deficiencies, bankruptcy filing by the borrower or dependence on the sale of collateral for the primary source of repayment, causing more than acceptable levels of risk. Loans 60 to 89 days past due receive a grade of D. A grade of E will generally be applied to loans for customers with weaknesses inherent in the D classification and in which collection or liquidation in full is questionable. In addition, on a monthly basis the Company determines which loans are 90 days or more past due and assigns a grade of E to them. A grade of F is applied to loans which are considered uncollectible and of such little value that their continuance in an active bank is not warranted. Loans with this grade are charged off, even though partial or full recovery may be possible in the future. The following tables further disaggregates credit quality disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2025 and December 31, 2024 (in thousands). The Company defines vintage as the later of origination, or restructure date. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans | | | | | Revolving | | | | | | Amortized Cost Basis by Origination Year | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | Converted to | | | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Loans | | Term Loans | | Total | March 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate, Residential Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 3,363 | | $ | 10,912 | | $ | 12,908 | | $ | 13,609 | | $ | 9,938 | | $ | 22,972 | | $ | 4,974 | | $ | 698 | | $ | 79,374 | S | | | — | | | — | | | — | | | — | | | — | | | 53 | | | — | | | — | | | 53 | D | | | — | | | — | | | — | | | — | | | — | | | 455 | | | 61 | | | — | | | 516 | E | | | — | | | — | | | — | | | — | | | 287 | | | 133 | | | — | | | — | | | 420 | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Real Estate Residential Loans | | $ | 3,363 | | $ | 10,912 | | $ | 12,908 | | $ | 13,609 | | $ | 10,225 | | $ | 23,613 | | $ | 5,035 | | $ | 698 | | $ | 80,363 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate, Construction Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 952 | | $ | 2,737 | | $ | 413 | | $ | 1,443 | | $ | 1,858 | | $ | 3,440 | | $ | 6,434 | | $ | — | | $ | 17,277 | S | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | D | | | — | | | — | | | 121 | | | — | | | — | | | 140 | | | — | | | — | | | 261 | E | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Real Estate, Construction Loans | | $ | 952 | | $ | 2,737 | | $ | 534 | | $ | 1,443 | | $ | 1,858 | | $ | 3,580 | | $ | 6,434 | | $ | — | | $ | 17,538 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate,Nonresidential Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 104 | | $ | 2,627 | | $ | 11,095 | | $ | 21,521 | | $ | 10,163 | | $ | 46,259 | | $ | 18,215 | | $ | — | | $ | 109,984 | S | | | — | | | — | | | — | | | — | | | — | | | 59 | | | — | | | — | | | 59 | D | | | — | | | — | | | — | | | — | | | — | | | 471 | | | — | | | — | | | 471 | E | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Real Estate, Nonresidential Loans | | $ | 104 | | $ | 2,627 | | $ | 11,095 | | $ | 21,521 | | $ | 10,163 | | $ | 46,789 | | $ | 18,215 | | $ | — | | $ | 110,514 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 387 | | $ | 1,123 | | $ | 454 | | $ | 450 | | $ | 617 | | $ | 2,637 | | $ | 6,670 | | $ | — | | $ | 12,338 | S | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | D | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | E | | | — | | | — | | | 21 | | | — | | | — | | | — | | | — | | | — | | | 21 | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Commercial and Industrial Loans | | $ | 387 | | $ | 1,123 | | $ | 475 | | $ | 450 | | $ | 617 | | $ | 2,637 | | $ | 6,670 | | $ | — | | $ | 12,359 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer/Other Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 1,001 | | $ | 4,292 | | $ | 2,947 | | $ | 727 | | $ | 370 | | $ | 474 | | $ | 1,051 | | $ | — | | $ | 10,862 | S | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | D | | | — | | | 5 | | | — | | | — | | | — | | | — | | | 4 | | | — | | | 9 | E | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer/Other Loans | | $ | 1,001 | | $ | 4,297 | | $ | 2,947 | | $ | 727 | | $ | 370 | | $ | 474 | | $ | 1,055 | | $ | — | | $ | 10,871 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans | | | | | Revolving | | | | | | Amortized Cost Basis by Origination Year | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | Converted to | | | | | | 2024 | | 2024 | | 2022 | | 2021 | | 2020 | | Prior | | Loans | | Term Loans | | Total | December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate, Residential Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 10,203 | | $ | 11,135 | | $ | 14,611 | | $ | 10,386 | | $ | 4,348 | | $ | 19,348 | | $ | 4,448 | | $ | 3,537 | | $ | 78,016 | S | | | — | | | — | | | — | | | — | | | — | | | 56 | | | — | | | — | | | 56 | D | | | — | | | — | | | — | | | — | | | 124 | | | 338 | | | — | | | — | | | 462 | E | | | — | | | — | | | — | | | 295 | | | — | | | 123 | | | — | | | — | | | 418 | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Real Estate Residential Loans | | $ | 10,203 | | $ | 11,135 | | $ | 14,611 | | $ | 10,681 | | $ | 4,472 | | $ | 19,865 | | $ | 4,448 | | $ | 3,537 | | $ | 78,952 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate, Construction Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 2,876 | | $ | 425 | | $ | 1,464 | | $ | 1,916 | | $ | 854 | | $ | 2,701 | | $ | 6,578 | | $ | — | | $ | 16,814 | S | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | D | | | — | | | 121 | | | — | | | — | | | 81 | | | — | | | — | | | — | | | 202 | E | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Real Estate, Construction Loans | | $ | 2,876 | | $ | 546 | | $ | 1,464 | | $ | 1,916 | | $ | 935 | | $ | 2,701 | | $ | 6,578 | | $ | — | | $ | 17,016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate,Nonresidential Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 2,711 | | $ | 11,191 | | $ | 24,434 | | $ | 10,290 | | $ | 13,344 | | $ | 34,096 | | $ | 17,672 | | $ | — | | $ | 113,738 | S | | | — | | | — | | | — | | | — | | | — | | | 62 | | | — | | | — | | | 62 | D | | | — | | | — | | | — | | | — | | | — | | | 463 | | | — | | | — | | | 463 | E | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Real Estate, Nonresidential Loans | | $ | 2,711 | | $ | 11,191 | | $ | 24,434 | | $ | 10,290 | | $ | 13,344 | | $ | 34,621 | | $ | 17,672 | | $ | — | | $ | 114,263 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 1,187 | | $ | 488 | | $ | 524 | | $ | 638 | | $ | 167 | | $ | 2,542 | | $ | 7,813 | | $ | — | | $ | 13,359 | S | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | D | | | — | | | 22 | | | — | | | — | | | — | | | — | | | — | | | — | | | 22 | E | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Commercial and Industrial Loans | | $ | 1,187 | | $ | 510 | | $ | 524 | | $ | 638 | | $ | 167 | | $ | 2,542 | | $ | 7,813 | | $ | — | | $ | 13,381 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer/Other Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | A, B, or C | | $ | 4,725 | | $ | 3,258 | | $ | 804 | | $ | 401 | | $ | 262 | | $ | 254 | | $ | 254 | | $ | — | | $ | 9,958 | S | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | D | | | — | | | — | | | 1 | | | — | | | — | | | — | | | 5 | | | — | | | 6 | E | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | F | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer/Other Loans | | $ | 4,725 | | $ | 3,258 | | $ | 805 | | $ | 401 | | $ | 262 | | $ | 254 | | $ | 259 | | $ | — | | $ | 9,964 |
The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated (in thousands): | | | | | | | | | | | | March 31, 2025 | | | Nonaccrual Loans with | | Nonaccrual Loans | | Total Nonaccrual | | | No Allowance | | with an Allowance | | Loans | Real estate, residential | | $ | 244 | | $ | 176 | | $ | 420 | Commercial and industrial | | | 21 | | | — | | | 21 | Total | | $ | 265 | | $ | 176 | | $ | 441 |
| | | | | | | | | | | | December 31, 2024 | | | Nonaccrual Loans with | | Nonaccrual Loans | | Total Nonaccrual | | | No Allowance | | with an Allowance | | Loans | Real estate, residential | | $ | 418 | | $ | — | | $ | 418 | Total | | $ | 418 | | $ | — | | $ | 418 |
The Company recognized no interest income on nonaccrual loans during the three months ended March 31, 2025 or the year ended December 31, 2024. The following table represents the accrued interest receivables written off by reversing interest income during the three months ended March 31, 2025 and the year ended December 31, 2024 (in thousands): | | | | | | | | | March 31, 2025 | | December 31, 2024 | Real estate, residential | | $ | — | | $ | 3 | Total loans | | $ | — | | $ | 3 |
The Company designates individually evaluated loans on nonaccrual status as collateral-dependent loans, as well as other loans that management of the Company designates as having higher risk. Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2025 and December 31, 2024 (in thousands): | | | | | | | | | March 31, 2025 | | December 31, 2024 | | | Residential | | Residential | | | Properties | | Properties | Real estate, residential | | $ | 425 | | $ | 424 | Commercial and industrial | | | 21 | | | | Total loans | | $ | 446 | | $ | 424 |
The following tables further disaggregates nonaccrual disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2025 and December 31, 2024 (in thousands). The Company defines vintage as the later of origination or restructure date: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans | | | | | | | | Revolving | | | | | | Amortized Cost Basis by Origination Year | | | | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | Revolving | | Converted to | | | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Loans | | Term Loans | | Total | March 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real estate, residential | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 287 | | $ | 133 | | $ | — | | $ | — | | $ | 420 | Real estate, construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Real estate, nonresidential | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | — | | | 21 | | | — | | | — | | | — | | | — | | | — | | | 21 | Consumer/Other | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Loans on Nonaccrual | | $ | — | | $ | — | | $ | 21 | | $ | — | | $ | 287 | | $ | 133 | | $ | — | | $ | — | | $ | 441 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans | | | | | | | | Revolving | | | | | | Amortized Cost Basis by Origination Year | | | | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | Converted to | | | | | | 2024 | | 2024 | | 2022 | | 2021 | | 2020 | | Prior | | Loans | | Term Loans | | Total | December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real estate, residential | | $ | — | | $ | — | | $ | — | | $ | 295 | | $ | — | | $ | 123 | | $ | — | | $ | — | | $ | 418 | Real estate, construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Real estate, nonresidential | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Consumer/Other | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Loans on Nonaccrual | | $ | — | | $ | — | | $ | — | | $ | 295 | | $ | — | | $ | 123 | | $ | — | | $ | — | | $ | 418 |
The Company had no loan modifications made to borrowers experiencing financial difficulty as of March 31, 2025 and had one loan modification as of December 31, 2024. The following table shows the amortized cost basis as of March 31, 2025 of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of loans and type of concession granted and describes the financial effect of the modifications made to borrowers experiencing financial difficulty (in thousands): | | | | | | | | | | Term Extension | | | | | | | | | | | March 31, 2025 | | | Amortized Cost | | % of Total Loan | | | | | Basis | | Type | | Financial Effect | Real estate, residential | | $ | 16 | | 0.02 | % | Added a weighted average 3 years to the life of loan, which reduced monthly payment amounts for the borrowers. Provided 3 month payment deferrals to borrowers through our standard deferral program. The 3 monthly payments were added to the end of the original loan terms of these. | Total | | $ | 16 | | | | |
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months (in thousands): | | | | | | | | | | | | Payment Status (Amortized Cost Basis) | | | March 31, 2025 | | | | | | 30-89 Days Past | | 90+ Days Past | | | Current | | Due | | Due | Real estate, residential | | $ | 16 | | $ | — | | $ | — | Total | | $ | 16 | | $ | — | | $ | — |
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