The following table presents the composition of loans segregated by class of loans, as of June 30, 2025 and December 31, 2024.


(dollars in thousands)	June 30, 2025		December 31, 2024
Construction, land & land development	$	238,078	$	205,046
Other commercial real estate	1,059,149		990,648
Total commercial real estate	1,297,227		1,195,694
Residential real estate	356,515		344,167
Commercial, financial & agricultural	212,872		213,910
Consumer and other	126,966		89,209
Total loans	$	1,993,580	$	1,842,980

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this note. As of June 30, 2025 and December 31, 2024, accrued interest receivable for loans totaled $9.2 million and $8.8 million, respectively, and is included in the "Other assets" line item on the Company’s consolidated balance sheet.

Commercial, financial & agricultural loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer and other loans are originated at the Bank level.

Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (1) the risk grade assigned to commercial and consumer loans, (2) the level of classified commercial loans, (3) net charge-offs, (4) nonperforming loans, and (5) the general economic conditions in the Company’s geographic markets.

•Grades 1, 2 and 3 - Loans with these assigned risk grades range from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification.

•Grades 4 and 5 - Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. These loans are also included in the “pass” classification.

•Grades 7 and 8 - These grades include “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned grade 8, and these loans often have assigned loss allocations as part of the allowance for credit losses. Generally, loans on which interest accrual has been stopped would be included in this grade range.

•Grades 9 and 10 - These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 7 or 8.

The following tables present the loan portfolio segregated by class of loans and the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of June 30, 2025 and December 31, 2024. Those loans with a risk grade of 1, 2, 3, 4, 5 and 98 have been combined in the pass line for presentation purposes. Loans with a risk grade of 7, 8 and 99 have been combined in the substandard line. There were no loans with a risk rating of "doubtful" or "loss" at June 30, 2025 or December 31, 2024.


	Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolvers		Revolvers converted to term loans		Total
June 30, 2025
Construction, land & land development
Risk rating
Pass	$	81,401	$	70,786	$	30,984	$	27,544	$	18,354	$	6,753	$	49	$	—	$	235,871
Special Mention	—		—		1,398		—		—		403		281		—		2,082
Substandard	—		41		—		—		—		84		—		—		125
Total Construction, land & land development	81,401		70,827		32,382		27,544		18,354		7,240		330		—		238,078

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other commercial real estate
Risk rating
Pass	99,137		79,995		76,528		336,483		174,567		249,152		11,437		1,817		1,029,116
Special Mention	—		—		5,592		2,746		151		4,334		—		525		13,348
Substandard	522		4,413		2,250		6,535		528		1,585		649		203		16,685
Total Other commercial real estate	99,659		84,408		84,370		345,764		175,246		255,071		12,086		2,545		1,059,149

Current period gross write offs	—		—		206		—		—		20		—		—		226

Residential real estate
Risk rating
Pass	27,942		18,482		72,172		108,192		41,116		55,836		24,738		813		349,291
Special Mention	—		—		1,297		—		1,670		2,838		196		—		6,001
Substandard	47		—		—		423		270		483		—		—		1,223
Total Residential real estate	27,989		18,482		73,469		108,615		43,056		59,157		24,934		813		356,515

Current period gross write offs	—		—		—		140		—		42		—		—		182

Commercial, financial & agricultural
Risk rating
Pass	24,523		41,086		36,921		28,157		10,913		20,039		35,374		647		197,660
Special Mention	1,655		830		932		1,227		130		4		3,362		—		8,140
Substandard	—		106		3,234		709		2,361		260		402		—		7,072
Total Commercial, financial & agricultural	26,178		42,022		41,087		30,093		13,404		20,303		39,138		647		212,872

Current period gross write offs	36		189		121		502		6		60		—		—		914



Consumer and other
Risk rating
Pass	53,172		36,959		32,452		1,892		579		1,252		512		10		126,828
Special Mention	—		132		—		—		—		—		—		—		132
Substandard	—		1		5		—		—		—		—		—		6
Total Consumer and other	53,172		37,092		32,457		1,892		579		1,252		512		10		126,966

Current period gross write offs	24		465		49		4		—		12		—		—		554

Total Loans
Risk rating
Pass	286,175		247,308		249,057		502,268		245,529		333,032		72,110		3,287		1,938,766
Special Mention	1,655		962		9,219		3,973		1,951		7,579		3,839		525		29,703
Substandard	569		4,561		5,489		7,667		3,159		2,412		1,051		203		25,111
Total Loans	$	288,399	$	252,831	$	263,765	$	513,908	$	250,639	$	343,023	$	77,000	$	4,015	$	1,993,580

Total current period gross write offs	$	60	$	654	$	376	$	646	$	6	$	134	$	—	$	—	$	1,876



	Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolvers		Revolvers converted to term loans		Total
December 31, 2024
Construction, land & land development
Risk rating
Pass	$	98,269	$	47,378	$	25,930	$	23,193	$	1,979	$	5,379	$	53	$	—	$	202,181
Special Mention	—		2,088		—		—		411		—		281		—		2,780
Substandard	—		—		—		—		—		85		—		—		85
Total Construction, land & land development	98,269		49,466		25,930		23,193		2,390		5,464		334		—		205,046

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other commercial real estate
Risk rating
Pass	55,169		85,172		343,123		180,568		76,905		194,444		21,341		1,849		958,571
Special Mention	850		1,999		4,288		173		2,344		7,376		610		1,069		18,709
Substandard	4,114		2,586		2,875		459		352		2,419		563		—		13,368
Total Other commercial real estate	60,133		89,757		350,286		181,200		79,601		204,239		22,514		2,918		990,648

Current period gross write offs	—		—		—		—		—		20		—		—		20

Residential real estate
Risk rating
Pass	16,675		76,074		112,784		45,111		18,978		44,892		23,222		926		338,662
Special Mention	—		1,672		374		—		—		1,989		204		—		4,239
Substandard	—		—		442		270		28		526		—		—		1,266
Total Residential real estate	16,675		77,746		113,600		45,381		19,006		47,407		23,426		926		344,167

Current period gross write offs	—		—		400		18		—		9		—		—		427



Commercial, financial & agricultural
Risk rating
Pass	44,380		46,610		33,124		12,322		8,662		16,143		43,051		742		205,034
Special Mention	—		622		2,136		12		—		—		700		—		3,470
Substandard	105		1,612		858		1,904		271		218		433		5		5,406
Total Commercial, financial & agricultural	44,485		48,844		36,118		14,238		8,933		16,361		44,184		747		213,910

Current period gross write offs	138		588		659		986		28		68		—		—		2,467

Consumer and other
Risk rating
Pass	53,500		30,186		2,312		857		530		1,291		456		13		89,145
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	49		—		12		1		2		—		—		—		64
Total Consumer and other	53,549		30,186		2,324		858		532		1,291		456		13		89,209

Current period gross write offs	84		392		81		1		5		41		—		—		604

Total Loans
Risk rating
Pass	267,993		285,420		517,273		262,051		107,054		262,149		88,123		3,530		1,793,593
Special Mention	850		6,381		6,798		185		2,755		9,365		1,795		1,069		29,198
Substandard	4,268		4,198		4,187		2,634		653		3,248		996		5		20,189
Total Loans	$	273,111	$	295,999	$	528,258	$	264,870	$	110,462	$	274,762	$	90,914	$	4,604	$	1,842,980

Total current period gross write offs	$	222	$	980	$	1,140	$	1,005	$	33	$	138	$	—	$	—	$	3,518

A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to review at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more are reassessed on a quarterly basis. During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due.

Loans are classified as collateral-dependent when the borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate. The Company had $2.1 million and $3.1 million in collateral-dependent loans at June 30, 2025 and December 31, 2024, respectively.

The following table presents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of June 30, 2025 and December 31, 2024:


(dollars in thousands)	30-89 Days Past Due		90 Days or More Past Due		Total Accruing Loans Past Due		Nonaccrual Loans		Current Loans		Total Loans
June 30, 2025
Construction, land & land development	$	—	$	—	$	—	$	—	$	238,078	$	238,078
Other commercial real estate	2,451		—		2,451		3,779		1,052,919		1,059,149
Total commercial real estate	2,451		—		2,451		3,779		1,290,997		1,297,227
Residential real estate	557		—		557		1,182		354,776		356,515
Commercial, financial & agricultural	831		—		831		5,616		206,425		212,872
Consumer and other	733		107		840		7		126,119		126,966
Total Loans	$	4,572	$	107	$	4,679	$	10,584	$	1,978,317	$	1,993,580

December 31, 2024
Construction, land & land development	$	544	$	—	$	544	$	—	$	204,502	$	205,046
Other commercial real estate	2,441		—		2,441		4,833		983,374		990,648
Total commercial real estate	2,985		—		2,985		4,833		1,187,876		1,195,694
Residential real estate	3,689		—		3,689		1,204		339,274		344,167
Commercial, financial & agricultural	1,348		—		1,348		4,559		208,003		213,910
Consumer and other	339		152		491		64		88,654		89,209
Total Loans	$	8,361	$	152	$	8,513	$	10,660	$	1,823,807	$	1,842,980



	June 30, 2025
(dollars in thousands)	Nonaccrual Loans with No Related ACL		Nonaccrual Loans with a Related ACL		Total Nonaccrual Loans

Construction, land & land development	$	—	$	—	$	—
Other commercial real estate	—		3,779		3,779
Total commercial real estate	—		3,779		3,779
Residential real estate	—		1,182		1,182
Commercial, financial & agricultural	1,872		3,744		5,616
Consumer and other	—		7		7
Total Loans	$	1,872	$	8,712	$	10,584



	December 31, 2024
(dollars in thousands)	Nonaccrual Loans with No Related ACL		Nonaccrual Loans with a Related ACL		Total Nonaccrual Loans

Construction, land & land development	$	—	$	—	$	—
Other commercial real estate	1,482		3,351		4,833
Total commercial real estate	1,482		3,351		4,833
Residential real estate	—		1,204		1,204
Commercial, financial & agricultural	—		4,559		4,559
Consumer and other	—		64		64
Total Loans	$	1,482	$	9,178	$	10,660

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. Upon the Company's determination that a modified loan, or portion of a loan, has subsequently been deemed uncollectible, the loan, or portion of the loan, is written off.

There were a total of three loans in the above categories for the three months ended June 30, 2024. The commercial real estate loans consisted of two loans, each with a term extension of one year with one loan also given a payment delay. The one commercial, financial & agricultural loan had been given a payment delay and a term extension of five years.

There were a total of four loans in the above categories for the six months ended June 30, 2024. The commercial real estate loans consisted of two loans, each with a term extension of one year with one loan also given a payment delay. There were two commercial, financial & agricultural loans, each of which had been given a payment delay and one with a term extension of five years.