Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2025

Loans Held for Sale

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of June 30, 2025 and December 31, 2024. The Company designates loans held for sale as either carried at fair value or the lower of cost or fair value at loan level at origination.

Loans Held for Investment

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:


	June 30, 2025			December 31, 2024
(In Thousands)	Amortized Cost	Unpaid Principal	Difference	Amortized Cost	Unpaid Principal	Difference
Commercial & industrial loans	$486,231	$488,621	($2,390)	$437,922	$440,163	($2,241)
Commercial real estate:
Owner occupied properties	445,497	447,561	(2,064)	418,092	420,060	(1,968)
Non-owner occupied and multifamily properties	692,573	696,766	(4,193)	615,662	619,431	(3,769)
Residential real estate:
1-4 family residential properties secured by first liens	206,825	206,905	(80)	270,966	270,535	431
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	60,611	60,118	493	49,160	48,857	303
1-4 family residential construction loans	35,777	36,005	(228)	39,516	39,789	(273)
Other construction, land development and raw land loans	186,007	187,442	(1,435)	212,561	214,068	(1,507)
Obligations of states and political subdivisions in the US	31,479	31,477	2	29,471	29,468	3
Agricultural production, including commercial fishing	46,340	46,535	(195)	45,840	46,069	(229)
Consumer loans	7,663	7,570	93	7,638	7,562	76
Other loans	3,112	3,120	(8)	2,435	2,448	(13)
Total	2,202,115	2,212,120	(10,005)	2,129,263	2,138,450	(9,187)
Allowance for credit losses	(22,585)			(22,020)
Net loans	$2,179,530	$2,212,120	($10,005)	$2,107,243	$2,138,450	($9,187)

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $10.0 million at June 30, 2025 and $9.2 million at December 31, 2024.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $9.7 million and $8.4 million at June 30, 2025 and December 31, 2024, respectively, and is included in other assets in the Consolidated Balance Sheets.

Allowance for Credit Losses

The table below presents activity in the ACL related to loans held for investment for the periods indicated.


Three Months Ended June 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2025
Commercial & industrial loans	$7,387	$268	($152)	$5	$7,508
Commercial real estate:
Owner occupied properties	2,442	(171)	—	—	2,271
Non-owner occupied and multifamily properties	3,956	227	—	—	4,183
Residential real estate:
1-4 family residential properties secured by first liens	4,056	637	—	—	4,693
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	769	152	—	7	928
1-4 family residential construction loans	219	51	—	—	270
Other construction, land development and raw land loans	1,706	602	—	—	2,308
Obligations of states and political subdivisions in the US	123	12	—	—	135
Agricultural production, including commercial fishing	187	10	—	—	197
Consumer loans	71	11	(3)	3	82
Other loans	6	4	—	—	10
Total	$20,922	$1,803	($155)	$15	$22,585
2024
Commercial & industrial loans	$4,052	($22)	$—	$17	$4,047
Commercial real estate:
Owner occupied properties	2,893	70	—	—	2,963
Non-owner occupied and multifamily properties	3,419	80	—	—	3,499
Residential real estate:
1-4 family residential properties secured by first liens	3,425	64	—	—	3,489
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	581	80	—	4	665
1-4 family residential construction loans	159	21	—	—	180
Other construction, land development and raw land loans	2,675	(149)	—	—	2,526
Obligations of states and political subdivisions in the US	105	(5)	—	—	100
Agricultural production, including commercial fishing	156	(4)	—	5	157
Consumer loans	60	1	—	—	61
Other loans	8	(1)	—	—	7
Total	$17,533	$135	$—	$26	$17,694


Six Months Ended June 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2025
Commercial & industrial loans	$5,800	$1,818	($189)	$79	$7,508
Commercial real estate:
Owner occupied properties	2,944	(673)	—	—	2,271
Non-owner occupied and multifamily properties	3,967	216	—	—	4,183
Residential real estate:
1-4 family residential properties secured by first liens	4,364	329	—	—	4,693
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	775	139	—	14	928
1-4 family residential construction loans	230	40	—	—	270
Other construction, land development and raw land loans	3,589	(1,281)	—	—	2,308
Obligations of states and political subdivisions in the US	106	29	—	—	135
Agricultural production, including commercial fishing	169	25	—	3	197
Consumer loans	71	24	(16)	3	82
Other loans	5	5	—	—	10
Total	$22,020	$671	($205)	$99	$22,585
2024
Commercial & industrial loans	$3,438	$532	$—	$77	$4,047
Commercial real estate:
Owner occupied properties	2,867	96	—	—	2,963
Non-owner occupied and multifamily properties	3,294	205	—	—	3,499
Residential real estate:
1-4 family residential properties secured by first liens	3,470	19	—	—	3,489
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	551	104	—	10	665
1-4 family residential construction loans	191	(11)	—	—	180
Other construction, land development and raw land loans	3,127	(601)	—	—	2,526
Obligations of states and political subdivisions in the US	80	20	—	—	100
Agricultural production, including commercial fishing	168	9	(25)	5	157
Consumer loans	81	(21)	—	1	61
Other loans	3	4	—	—	7
Total	$17,270	$356	($25)	$93	$17,694

The following table shows gross charge-offs by year of loan origination for the periods indicated:


Six Months Ended June 30,

(In Thousands)	2025	2024	2023	2022	2021	Prior	Total
2025
Commercial & industrial loans	$—	$152	$—	$—	$37	$—	$189










Consumer loans	—	—	6	—	—	10	16

Total	$—	$152	$6	$—	$37	$10	$205

Credit Quality Information

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. Loans graded 7 or higher are considered “criticized” loans. A description of the general characteristics of the AQR risk classifications are as follows:

Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The borrower has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses.

Criticized loans:

Special Mention – 7: A “special mention” credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset at some future date.

Substandard – 8: A “substandard” credit is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful – 9: An asset classified “doubtful” has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety.

Loss – 10: An asset classified “loss” is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.

The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.


June 30, 2025	2025	2024	2023	2022	2021	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$53,042	$97,462	$67,047	$106,048	$36,135	$81,015	$440,749
Criticized	766	3,819	6,779	16,615	10,467	7,036	45,482
Total commercial & industrial loans	$53,808	$101,281	$73,826	$122,663	$46,602	$88,051	$486,231

Commercial real estate:
Owner occupied properties
Pass	$22,786	$83,781	$47,458	$70,085	$57,289	$142,440	$423,839


Criticized	6,002	—	—	3,739	—	11,917	21,658
Total commercial real estate owner occupied properties	$28,788	$83,781	$47,458	$73,824	$57,289	$154,357	$445,497

Non-owner occupied and multifamily properties
Pass	$50,479	$119,227	$67,539	$140,597	$79,591	$224,118	$681,551
Criticized	—	—	—	1,152	—	9,870	11,022
Total commercial real estate non-owner occupied and multifamily properties	$50,479	$119,227	$67,539	$141,749	$79,591	$233,988	$692,573

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$963	$68,021	$87,706	$35,881	$3,060	$10,181	$205,812
Criticized	—	—	518	314	—	181	1,013
Total residential real estate 1-4 family residential properties secured by first liens	$963	$68,021	$88,224	$36,195	$3,060	$10,362	$206,825

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$11,047	$20,250	$12,358	$5,880	$2,671	$7,957	$60,163
Criticized	—	—	372	—	—	76	448
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$11,047	$20,250	$12,730	$5,880	$2,671	$8,033	$60,611

1-4 family residential construction loans
Pass	$14,542	$12,561	$413	$—	$—	$8,261	$35,777
Criticized	—	—	—	—	—	—	—
Total residential real estate 1-4 family residential construction loans	$14,542	$12,561	$413	$—	$—	$8,261	$35,777

Other construction, land development and raw land loans
Pass	$27,388	$61,777	$64,431	$14,141	$9,042	$7,653	$184,432
Criticized	—	—	—	—	28	1,547	1,575
Total other construction, land development and raw land loans	$27,388	$61,777	$64,431	$14,141	$9,070	$9,200	$186,007

Obligations of states and political subdivisions in the US
Pass	$—	$3,530	$—	$27,949	$—	$—	$31,479
Criticized	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$3,530	$—	$27,949	$—	$—	$31,479

Agricultural production, including commercial fishing
Pass	$1,490	$8,035	$9,311	$7,882	$15,274	$4,211	$46,203
Criticized	—	—	—	—	137	—	137
Total agricultural production, including commercial fishing	$1,490	$8,035	$9,311	$7,882	$15,411	$4,211	$46,340

Consumer loans
Pass	$1,713	$2,368	$1,893	$596	$57	$1,007	$7,634
Criticized	—	—	—	4	—	25	29
Total consumer loans	$1,713	$2,368	$1,893	$600	$57	$1,032	$7,663

Other loans
Pass	$—	$—	$1,496	$94	$280	$1,242	$3,112
Criticized	—	—	—	—	—	—	—
Total other loans	$—	$—	$1,496	$94	$280	$1,242	$3,112

Total loans
Pass	$183,450	$477,012	$359,652	$409,153	$203,399	$488,085	$2,120,751
Criticized	6,768	3,819	7,669	21,824	10,632	30,652	81,364
Total loans	$190,218	$480,831	$367,321	$430,977	$214,031	$518,737	$2,202,115

Total pass loans	$183,450	$477,012	$359,652	$409,153	$203,399	$488,085	$2,120,751
Government guarantees	(9,133)	(40,990)	(19,032)	(4,967)	(12,838)	(17,871)	(104,831)
Total pass loans, net of government guarantees	$174,317	$436,022	$340,620	$404,186	$190,561	$470,214	$2,015,920


Total criticized loans	$6,768	$3,819	$7,669	$21,824	$10,632	$30,652	$81,364
Government guarantees	—	—	(1,568)	(17,056)	(9,427)	(12,722)	(40,773)
Total criticized loans, net government guarantees	$6,768	$3,819	$6,101	$4,768	$1,205	$17,930	$40,591


December 31, 2024	2024	2023	2022	2021	2020	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$112,361	$70,871	$120,377	$37,628	$10,581	$40,288	$392,106
Criticized	201	3,386	16,888	14,973	5,759	4,609	45,816
Total commercial & industrial loans	$112,562	$74,257	$137,265	$52,601	$16,340	$44,897	$437,922

Commercial real estate:
Owner occupied properties
Pass	$68,074	$48,655	$74,611	$64,234	$74,662	$74,987	$405,223
Criticized	—	—	492	—	348	12,029	12,869
Total commercial real estate owner occupied properties	$68,074	$48,655	$75,103	$64,234	$75,010	$87,016	$418,092

Non-owner occupied and multifamily properties
Pass	$114,879	$70,806	$104,924	$73,008	$65,592	$175,349	$604,558
Criticized	—	—	1,166	30	—	9,908	11,104
Total commercial real estate non-owner occupied and multifamily properties	$114,879	$70,806	$106,090	$73,038	$65,592	$185,257	$615,662

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$103,919	$108,642	$43,562	$3,279	$4,228	$6,978	$270,608
Criticized	—	205	—	—	—	153	358
Total residential real estate 1-4 family residential properties secured by first liens	$103,919	$108,847	$43,562	$3,279	$4,228	$7,131	$270,966

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$18,946	$13,553	$5,116	$2,695	$2,097	$6,083	$48,490
Criticized	—	372	—	—	—	298	670
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$18,946	$13,925	$5,116	$2,695	$2,097	$6,381	$49,160

1-4 family residential construction loans
Pass	$25,458	$4,118	$2,353	$—	$—	$7,587	$39,516
Criticized	—	—	—	—	—	—	—
Total residential real estate 1-4 family residential construction loans	$25,458	$4,118	$2,353	$—	$—	$7,587	$39,516

Other construction, land development and raw land loans
Pass	$63,430	$60,693	$51,809	$25,836	$1,236	$7,942	$210,946
Criticized	—	—	—	—	—	1,615	1,615
Total other construction, land development and raw land loans	$63,430	$60,693	$51,809	$25,836	$1,236	$9,557	$212,561

Obligations of states and political subdivisions in the US
Pass	$—	$—	$29,471	$—	$—	$—	$29,471
Criticized	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$—	$29,471	$—	$—	$—	$29,471

Agricultural production, including commercial fishing
Pass	$8,097	$8,776	$8,380	$15,847	$3,109	$1,631	$45,840
Criticized	—	—	—	—	—	—	—
Total agricultural production, including commercial fishing	$8,097	$8,776	$8,380	$15,847	$3,109	$1,631	$45,840

Consumer loans
Pass	$3,346	$2,377	$717	$75	$252	$820	$7,587


Criticized	—	45	5	—	—	1	51
Total consumer loans	$3,346	$2,422	$722	$75	$252	$821	$7,638

Other loans
Pass	$—	$345	$122	$285	$1,683	$—	$2,435
Criticized	—	—	—	—	—	—	—
Total other loans	$—	$345	$122	$285	$1,683	$—	$2,435

Total loans
Pass	$518,510	$388,836	$441,442	$222,887	$163,440	$321,665	$2,056,780
Criticized	201	4,008	18,551	15,003	6,107	28,613	72,483
Total loans	$518,711	$392,844	$459,993	$237,890	$169,547	$350,278	$2,129,263

Total pass loans	$518,510	$388,836	$441,442	$222,887	$163,440	$321,665	$2,056,780
Government guarantees	(35,244)	(12,421)	(7,727)	(13,785)	(1,591)	(17,276)	(88,044)
Total pass loans, net of government guarantees	$483,266	$376,415	$433,715	$209,102	$161,849	$304,389	$1,968,736

Total criticized loans	$201	$4,008	$18,551	$15,003	$6,107	$28,613	$72,483
Government guarantees	—	(1,640)	(14,816)	(13,476)	(5,183)	(7,963)	(43,078)
Total criticized loans, net government guarantees	$201	$2,368	$3,735	$1,527	$924	$20,650	$29,405

Past Due Loans: The following tables present an aging of contractually past due loans as of the periods presented:


(In Thousands)	30-59 Days Past Due	60-89 Days Past Due	Greater Than 90 Days Past Due	Total Past Due	Current	Total	Greater Than 90 Days Past Due Still Accruing
June 30, 2025
Commercial & industrial loans	$795	$70	$1,499	$2,364	$483,867	$486,231	$—
Commercial real estate:
Owner occupied properties	—	—	217	217	445,280	445,497	—
Non-owner occupied and multifamily properties	—	—	—	—	692,573	692,573	—
Residential real estate:
1-4 family residential properties secured by first liens	—	468	197	665	206,160	206,825	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	69	65	372	506	60,105	60,611	—
1-4 family residential construction loans	—	—	—	—	35,777	35,777	—
Other construction, land development and raw land loans	—	—	1,490	1,490	184,517	186,007	—
Obligations of states and political subdivisions in the US	—	—	—	—	31,479	31,479	—
Agricultural production, including commercial fishing	—	—	—	—	46,340	46,340	—
Consumer loans	24	25	—	49	7,614	7,663	—
Other loans	—	—	—	—	3,112	3,112	—
Total	$888	$628	$3,775	$5,291	$2,196,824	$2,202,115	$—
December 31, 2024
Commercial & industrial loans	$718	$—	$1,558	$2,276	$435,646	$437,922	$—
Commercial real estate:
Owner occupied properties	—	492	224	716	417,376	418,092	—
Non-owner occupied and multifamily properties	—	—	—	—	615,662	615,662	—
Residential real estate:
1-4 family residential properties secured by first liens	712	323	205	1,240	269,726	270,966	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	—	466	466	48,694	49,160	17
1-4 family residential construction loans	—	—	94	94	39,422	39,516	—
Other construction, land development and raw land loans	—	—	1,432	1,432	211,129	212,561	—
Obligations of states and political subdivisions in the US	—	—	—	—	29,471	29,471	—
Agricultural production, including commercial fishing	—	—	—	—	45,840	45,840	—
Consumer loans	—	—	—	—	7,638	7,638	—
Other loans	—	—	—	—	2,435	2,435	—
Total	$1,430	$815	$3,979	$6,224	$2,123,039	$2,129,263	$17

Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $7.8 million and $7.5 million at June 30, 2025 and December 31, 2024, respectively. The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.


	June 30, 2025		December 31, 2024
(In Thousands)	Nonaccrual	Nonaccrual With No ACL	Nonaccrual	Nonaccrual With No ACL

Commercial & industrial loans	$5,484	$5,484	$4,983	$4,760
Commercial real estate:
Owner occupied properties	217	217	224	224

Residential real estate:
1-4 family residential properties secured by first liens	197	197	233	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	448	372	550	466
1-4 family residential construction loans	—	—	94	94
Other construction, land development and raw land loans	1,490	1,490	1,432	1,432


Consumer loans	25	—	—	—

Total nonaccrual loans	7,861	7,760	7,516	6,976
Government guarantees on nonaccrual loans	(70)	(70)	—	—
Net nonaccrual loans	$7,791	$7,690	$7,516	$6,976

There was no interest on nonaccrual loans reversed through interest income during the three or six-month periods ending June 30, 2025 or June 30, 2024.

There was no interest earned on nonaccrual loans with a principal balance during the six-month periods ending June 30, 2025 and June 30, 2024. However, the Company recognized interest income of $45,000 and $32,000 in the three-month periods ending June 30, 2025 and 2024, respectively, and $87,000 and $234,000 in the six-month periods ending June 30, 2025 and 2024, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

Loan Modifications: The Company modifies loans to borrowers experiencing financial difficulty as a normal part of our business. These modifications include providing term extensions/modifications, payment modifications, interest rate modifications, or, on rare occasions, principal forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. The Company may provide multiple types of concessions on any one loan.

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:

Three Months Ended June 30, 2025

Payment Modification

Term and payment modifications

Total Modifications

Percentage of Class of Financing Receivable

(In Thousands)

Commercial real estate:

Owner occupied properties

$—

—

Total

$—

—

Three Months Ended June 30, 2024

Term Modification

Term and payment modifications

Total Modifications

Percentage of Class of Financing Receivable

(In Thousands)

Commercial & industrial loans

$—

—

Total

$—

—


	Six Months Ended June 30, 2025
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)

Commercial real estate:
Owner occupied properties	—	$3,252	$3,252	0.73	%










Total	$—	$3,252	$3,252	0.15	%


	Six Months Ended June 30, 2024
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$5,396	$265	$5,661	1.36	%












Total	$5,396	$265	$5,661	0.30	%

The Company has no outstanding unfunded commitments to the borrowers included in the previous table.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:


	Three Months Ended June 30, 2025
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	—	%	0


	Three Months Ended June 30, 2024
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	—	%	0


	Six Months Ended June 30, 2025
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	—	%	33


	Six Months Ended June 30, 2024
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	8	%	7

The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty as of the dates indicated. These are loans that have been modified within twelve months of the dates indicated:


	June 30, 2025	December 31, 2024
(In Thousands)
Commercial & industrial loans	$768	$5,075
Commercial real estate:
Owner occupied properties	3,468	224

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	372	466
1-4 family residential construction loans	—	94
Other construction, land development and raw land loans	1,490	1,432




Total	$6,098	$7,291

The following table presents the amortized cost basis of loans that had a payment default during the period indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

Term modification

(In Thousands)

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens

$—

1-4 family residential construction loans

—

Other construction, land development and raw land loans

—

Total

$—


	Three Months Ended June 30, 2024	Six Months Ended June 30, 2024
	Term modification		Term modification
(In Thousands)




Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$—		$112
1-4 family residential construction loans	—		109
Other construction, land development and raw land loans	—		968




Total	$—		$1,189

The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:


	June 30, 2025
	Greater Than 89 Days Past Due	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$—	$—	$768	$768
Commercial real estate:
Owner occupied properties	217	217	3,251	3,468

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	372	372	—	372

Other construction, land development and raw land loans	1,490	1,490	—	1,490




Total	$2,079	$2,079	$4,019	$6,098


	June 30, 2024
	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$—	$5,394	$5,394
Commercial real estate:
Owner occupied properties	—	242	242

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	108	108
1-4 family residential construction loans	—	106	106
Other construction, land development and raw land loans	—	1,512	1,512




Total	$—	$7,362	$7,362

Upon the Company's determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.