Loan Quality And Allowance For Credit Losses |
Note 6. Loan Quality and Allowance for Credit Losses The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. Management utilizes a risk rating scale ranging from 1-Prime to 9-Loss to evaluate loan quality. This risk rating scale is used primarily for commercial purpose loans. Consumer purpose loans are identified as either performing or nonperforming based on the payment status of the loans. Nonperforming consumer loans are loans that are nonaccrual or 90 days or more past due and still accruing. The Bank uses the following definitions for risk ratings: Pass (1-5): are considered pass credits with lower or average risk and are not otherwise classified. Other Assets Especially Mentioned (OAEM) (6): Loans classified as OAEM have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the borrower’s credit position at some future date. Substandard (7): Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified 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 (8): Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not share risk characteristics with pooled loans are evaluated on an individual basis. Loans evaluated individually are not included in the pool evaluation, this includes collateral dependent loans. Loans are considered Collateral Dependent when management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the sale of the collateral, the expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for any discounts and selling costs as appropriate. Management monitors loan performance on a monthly basis and performs a quarterly evaluation of the adequacy of the Allowance for Credit Loss for loans (ACL). The Bank begins enhanced monitoring of all loans rated 6–OAEM or worse and obtains a new appraisal or asset valuation for any loans placed on nonaccrual or rated 7 - Substandard or worse. Management, at its discretion, may determine that additional adjustments to the appraisal or valuation are required. Valuation adjustments will be made as necessary based on factors, including, but not limited to: the economy, deferred maintenance, industry, type of property/equipment, age of the appraisal, etc. and the knowledge Management has about a particular situation. In addition, the cost to sell or liquidate the collateral is also estimated and deducted from the valuation in order to determine the net realizable value to the Bank. When determining the ACL, certain factors involved in the evaluation are inherently subjective and require material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows. Management monitors the adequacy of the ACL on an ongoing basis and reports its adequacy quarterly to the Enterprise Risk Management Committee of the Board of Directors.
The following table presents loans by year of origination and internally assigned risk ratings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | Revolving | | Revolving | | | | | | Term Loans | | Loans | | Loans | | | | | | Amortized Cost Basis by Origination Year | | Amortized | | Converted | | | | As of June 30, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Cost Basis | | to Term | | Total | Residential real estate 1-4 family: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 2,350 | | $ | 5,106 | | $ | 9,864 | | $ | 7,033 | | $ | 9,603 | | $ | 26,137 | | $ | 3,853 | | $ | — | | $ | 63,946 | OAEM (6) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard (7) | | | — | | | — | | | — | | | — | | | — | | | 183 | | | — | | | — | | | 183 | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Commercial | | | 2,350 | | | 5,106 | | | 9,864 | | | 7,033 | | | 9,603 | | | 26,320 | | | 3,853 | | | — | | | 64,129 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 22,112 | | | 44,460 | | | 65,419 | | | 29,813 | | | 13,755 | | | 34,146 | | | 61,274 | | | 16,579 | | | 287,558 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer | | | 22,112 | | | 44,460 | | | 65,419 | | | 29,813 | | | 13,755 | | | 34,146 | | | 61,274 | | | 16,579 | | | 287,558 | Total | | $ | 24,462 | | $ | 49,566 | | $ | 75,283 | | $ | 36,846 | | $ | 23,358 | | $ | 60,466 | | $ | 65,127 | | $ | 16,579 | | $ | 351,687 | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate construction: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 3,124 | | $ | 14,420 | | $ | 1,663 | | $ | 403 | | $ | 470 | | $ | 2,062 | | $ | — | | $ | — | | $ | 22,142 | OAEM (6) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard (7) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Commercial | | | 3,124 | | | 14,420 | | | 1,663 | | | 403 | | | 470 | | | 2,062 | | | — | | | — | | | 22,142 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 5,440 | | | 20,201 | | | — | | | — | | | — | | | — | | | — | | | — | | | 25,641 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer | | | 5,440 | | | 20,201 | | | — | | | — | | | — | | | — | | | — | | | — | | | 25,641 | Total | | $ | 8,564 | | $ | 34,621 | | $ | 1,663 | | $ | 403 | | $ | 470 | | $ | 2,062 | | $ | — | | $ | — | | $ | 47,783 | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 80,861 | | $ | 110,258 | | | 215,885 | | | 97,736 | | $ | 87,739 | | $ | 225,902 | | $ | 11,098 | | $ | — | | $ | 829,479 | OAEM (6) | | | — | | | — | | | 8,824 | | | 7,099 | | | 700 | | | 7,652 | | | — | | | — | | | 24,275 | Substandard (7) | | | — | | | — | | | 13,650 | | | 246 | | | — | | | 4,547 | | | 50 | | | — | | | 18,493 | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 80,861 | | $ | 110,258 | | $ | 238,359 | | $ | 105,081 | | $ | 88,439 | | $ | 238,101 | | $ | 11,148 | | $ | — | | $ | 872,247 | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 11,738 | | $ | 25,316 | | $ | 14,505 | | $ | 23,437 | | $ | 36,511 | | $ | 74,300 | | $ | 51,090 | | $ | — | | $ | 236,897 | OAEM (6) | | | — | | | — | | | 9 | | | 390 | | | 1,412 | | | 4 | | | 341 | | | — | | | 2,156 | Substandard (7) | | | — | | | — | | | — | | | — | | | — | | | — | | | 50 | | | — | | | 50 | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 11,738 | | $ | 25,316 | | $ | 14,514 | | $ | 23,827 | | $ | 37,923 | | $ | 74,304 | | $ | 51,481 | | $ | — | | $ | 239,103 | Current period gross charge-offs | | $ | (6) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (7) | | $ | — | | $ | — | | $ | (13) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 1,019 | | | 1,588 | | | 959 | | | 282 | | | 1,589 | | | 20 | | | 2,873 | | | — | | | 8,330 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | 7 | | | — | | | 7 | Total | | $ | 1,019 | | $ | 1,588 | | $ | 959 | | $ | 282 | | $ | 1,589 | | $ | 20 | | $ | 2,880 | | $ | — | | $ | 8,337 | Current period gross charge-offs | | $ | (40) | | $ | — | | $ | — | | $ | (1) | | $ | (1) | | $ | (1) | | $ | (18) | | $ | — | | $ | (61) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | Revolving | | Revolving | | | | | | Term Loans | | Loans | | Loans | | | | | | Amortized Cost Basis by Origination Year | | Amortized | | Converted | | | | As of December 31, 2024 | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Cost Basis | | to Term | | Total | Residential real estate 1-4 family: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 5,306 | | $ | 9,436 | | $ | 7,529 | | $ | 10,133 | | $ | 8,099 | | $ | 20,251 | | $ | 4,079 | | $ | — | | $ | 64,833 | OAEM (6) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard (7) | | | — | | | — | | | — | | | — | | | — | | | — | | | 187 | | | — | | | 187 | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Commercial | | | 5,306 | | | 9,436 | | | 7,529 | | | 10,133 | | | 8,099 | | | 20,251 | | | 4,266 | | | — | | | 65,020 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 36,214 | | | 67,248 | | | 31,290 | | | 14,303 | | | 9,014 | | | 27,744 | | | 54,147 | | | 17,855 | | | 257,815 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer | | | 36,214 | | | 67,248 | | | 31,290 | | | 14,303 | | | 9,014 | | | 27,744 | | | 54,147 | | | 17,855 | | | 257,815 | Total | | $ | 41,520 | | $ | 76,684 | | $ | 38,819 | | $ | 24,436 | | $ | 17,113 | | $ | 47,995 | | $ | 58,413 | | $ | 17,855 | | $ | 322,835 | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate construction: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 5,582 | | $ | 3,306 | | $ | 403 | | $ | 1,150 | | $ | 159 | | $ | 1,085 | | $ | — | | $ | — | | $ | 11,685 | OAEM (6) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard (7) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Commercial | | | 5,582 | | | 3,306 | | | 403 | | | 1,150 | | | 159 | | | 1,085 | | | — | | | — | | | 11,685 | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 19,907 | | | 835 | | | — | | | — | | | — | | | — | | | — | | | — | | | 20,742 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer | | | 19,907 | | | 835 | | | — | | | — | | | — | | | — | | | — | | | — | | | 20,742 | Total | | $ | 25,489 | | $ | 4,141 | | $ | 403 | | $ | 1,150 | | $ | 159 | | $ | 1,085 | | $ | — | | $ | — | | $ | 32,427 | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 95,410 | | $ | 221,889 | | $ | 106,385 | | $ | 93,228 | | $ | 32,546 | | $ | 218,875 | | $ | 16,290 | | $ | — | | $ | 784,623 | OAEM (6) | | | — | | | — | | | 1,772 | | | 1,711 | | | 6,624 | | | — | | | — | | | — | | | 10,107 | Substandard (7) | | | — | | | 6,301 | | | 266 | | | — | | | — | | | 2,018 | | | 50 | | | — | | | 8,635 | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 95,410 | | $ | 228,190 | | $ | 108,423 | | $ | 94,939 | | $ | 39,170 | | $ | 220,893 | | $ | 16,340 | | $ | — | | $ | 803,365 | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (2) | | $ | — | | $ | — | | $ | (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass (1-5) | | $ | 25,398 | | $ | 16,289 | | $ | 27,545 | | $ | 37,927 | | $ | 18,196 | | $ | 60,126 | | $ | 42,595 | | $ | — | | $ | 228,076 | OAEM (6) | | | — | | | 11 | | | 420 | | | 1,500 | | | 9 | | | — | | | 250 | | | — | | | 2,190 | Substandard (7) | | | — | | | — | | | — | | | — | | | 58 | | | — | | | 273 | | | — | | | 331 | Doubtful (8) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 25,398 | | $ | 16,300 | | $ | 27,965 | | $ | 39,427 | | $ | 18,263 | | $ | 60,126 | | $ | 43,118 | | $ | — | | $ | 230,597 | Current period gross charge-offs | | $ | (11) | | $ | — | | $ | (287) | | $ | — | | $ | — | | $ | — | | $ | (161) | | $ | — | | $ | (459) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 2,289 | | | 1,140 | | | 386 | | | 1,682 | | | 36 | | | 27 | | | 3,291 | | | — | | | 8,851 | Nonperforming | | | — | | | — | | | — | | | 1 | | | — | | | — | | | 1 | | | — | | | 2 | Total | | $ | 2,289 | | $ | 1,140 | | $ | 386 | | $ | 1,683 | | $ | 36 | | $ | 27 | | $ | 3,292 | | $ | — | | $ | 8,853 | Current period gross charge-offs | | $ | (44) | | $ | — | | $ | — | | $ | — | | $ | (6) | | $ | — | | $ | (49) | | $ | — | | $ | (99) |
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing as of the date presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | December 31, 2024 | (Dollars in thousands) | | Nonaccrual and Loans past due 90 Days or more | | | Nonaccrual and Loans past due 90 Days or more | | | | | | | | | Loans past due | | | | | | | | | Loans past due | | | Nonaccrual | | Nonaccrual | | 90 Days or more | | | Nonaccrual | | Nonaccrual | | 90 Days or more | | | Without ACL | | With ACL | | Still Accruing | | | Without ACL | | With ACL | | Still Accruing | June 30, 2025 | | | | | | | | | | | | | | | | | | | | Residential Real Estate 1-4 Family | | | | | | | | | | | | | | | | | | | | First liens | | $ | — | | $ | — | | $ | — | | | $ | — | | $ | — | | $ | — | Junior liens and lines of credit | | | — | | | — | | | — | | | | — | | | — | | | — | Total | | | — | | | — | | | — | | | | — | | | — | | | — | Residential real estate - construction | | | — | | | — | | | — | | | | — | | | — | | | — | Commercial real estate | | | 10,828 | | | — | | | — | | | | 266 | | | — | | | — | Commercial | | | — | | | — | | | — | | | | — | | | — | | | — | Consumer | | | — | | | — | | | — | | | | — | | | — | | | 2 | Total | | $ | 10,828 | | $ | — | | $ | — | | | $ | 266 | | $ | — | | $ | 2 |
At June 30, 2025, the Corporation had two commercial loan relationships for $10.3 million that were considered to be collateral dependent, compared to $266 thousand at December 31, 2024. These loans are secured by a mixed-use construction loan and a hotel. The Bank has not established a specific reserve for the loans based on currently available information. At June 30, 2025 and December 31, 2024, the Bank had $0 of residential properties in the process of foreclosure. The following table presents the aging of payments of the loan portfolio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | Loans Past Due | | Total | | | | | Total | | | | 30-59 Days | | 60-89 Days | | 90 Days+ | | Past Due | | Current | | Loans | June 30, 2025 | | | | | | | | | | | | | | | | | | | | Residential Real Estate 1-4 Family | | | | | | | | | | | | | | | | | | | | First liens | | | $ | 18 | | $ | 211 | | $ | — | | $ | 229 | | $ | 263,811 | | $ | 264,040 | Junior liens and lines of credit | | | | 286 | | | 188 | | | — | | | 474 | | | 87,173 | | | 87,647 | Total | | | | 304 | | | 399 | | | — | | | 703 | | | 350,984 | | | 351,687 | Residential real estate - construction | | | | — | | | — | | | — | | | — | | | 47,783 | | | 47,783 | Commercial real estate | | | | 246 | | | — | | | 3,136 | | | 3,382 | | | 868,865 | | | 872,247 | Commercial | | | | 176 | | | — | | | — | | | 176 | | | 238,927 | | | 239,103 | Consumer | | | | 55 | | | 2 | | | — | | | 57 | | | 8,280 | | | 8,337 | Total | | | $ | 781 | | $ | 401 | | $ | 3,136 | | $ | 4,318 | | $ | 1,514,839 | | $ | 1,519,157 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans Past Due | | Total | | | | | Total | | | | | 30-59 Days | | 60-89 Days | | 90 Days+ | | Past Due | | Current | | Loans | | December 31, 2024 | | | | | | | | | | | | | | | | | | | | | Residential Real Estate 1-4 Family | | | | | | | | | | | | | | | | | | | | | First liens | | | $ | 203 | | $ | 640 | | $ | — | | $ | 843 | | $ | 239,758 | | $ | 240,601 | | Junior liens and lines of credit | | | | 241 | | | 160 | | | — | | | 401 | | | 81,833 | | | 82,234 | | Total | | | | 444 | | | 800 | | | — | | | 1,244 | | | 321,591 | | | 322,835 | | Residential real estate - construction | | | | — | | | — | | | — | | | — | | | 32,427 | | | 32,427 | | Commercial real estate | | | | 380 | | | 219 | | | — | | | 599 | | | 802,766 | | | 803,365 | | Commercial | | | | 747 | | | 50 | | | 266 | | | 1,063 | | | 229,534 | | | 230,597 | | Consumer | | | | 30 | | | 4 | | | 2 | | | 36 | | | 8,817 | | | 8,853 | | Total | | | $ | 1,601 | | $ | 1,073 | | $ | 268 | | $ | 2,942 | | $ | 1,395,135 | | $ | 1,398,077 | |
The following table presents, by class, the activity in the Allowance for Credit Losses (ACL) for the periods shown: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential Real Estate 1-4 Family | | | | | | | | | | | | | First | | Junior Liens & | | | | | Commercial | | | | | | | | | (Dollars in thousands) | | Liens | | Lines of Credit | | Construction | | Real Estate | | Commercial | | Consumer | | Total | | | | | | | | | | | | | | | | | | | | | | | ACL at March 31, 2025 | | $ | 1,529 | | $ | 470 | | $ | 455 | | $ | 12,480 | | $ | 3,394 | | $ | 116 | | $ | 18,444 | Charge-offs | | | — | | | — | | | — | | | — | | | (10) | | | (43) | | | (53) | Recoveries | | | — | | | — | | | — | | | — | | | 21 | | | 6 | | | 27 | Provision | | | 108 | | | 18 | | | 106 | | | 372 | | | 55 | | | 45 | | | 704 | ACL at June 30, 2025 | | $ | 1,637 | | $ | 488 | | $ | 561 | | $ | 12,852 | | $ | 3,460 | | $ | 124 | | $ | 19,122 | | | | | | | | | | | | | | | | | | | | | | | ACL at December 31, 2024 | | $ | 1,497 | | $ | 461 | | $ | 376 | | $ | 12,004 | | $ | 3,182 | | $ | 133 | | $ | 17,653 | Charge-offs | | | — | | | — | | | — | | | — | | | (13) | | | (61) | | | (74) | Recoveries | | | — | | | — | | | 3 | | | — | | | 75 | | | 11 | | | 89 | Provision | | | 140 | | | 27 | | | 182 | | | 848 | | | 216 | | | 41 | | | 1,454 | ACL at June 30, 2025 | | $ | 1,637 | | $ | 488 | | $ | 561 | | $ | 12,852 | | $ | 3,460 | | $ | 124 | | $ | 19,122 | | | | | | | | | | | | | | | | | | | | | | | ACL at March 31, 2024 | | $ | 1,308 | | $ | 415 | | $ | 337 | | $ | 11,057 | | $ | 3,324 | | $ | 92 | | $ | 16,533 | Charge-offs | | | — | | | — | | | — | | | — | | | (83) | | | (18) | | | (101) | Recoveries | | | — | | | — | | | 3 | | | — | | | 20 | | | 3 | | | 26 | Provision | | | 76 | | | 14 | | | (22) | | | 366 | | | 103 | | | 23 | | | 560 | ACL at June 30, 2024 | | $ | 1,384 | | $ | 429 | | $ | 318 | | $ | 11,423 | | $ | 3,364 | | $ | 100 | | $ | 17,018 | | | | | | | | | | | | | | | | | | | | | | | ACL at December 31, 2023 | | $ | 1,296 | | $ | 419 | | $ | 296 | | $ | 10,657 | | $ | 3,290 | | $ | 94 | | $ | 16,052 | Charge-offs | | | — | | | — | | | — | | | (2) | | | (149) | | | (46) | | | (197) | Recoveries | | | — | | | — | | | 7 | | | — | | | 80 | | | 26 | | | 113 | Provision | | | 88 | | | 10 | | | 15 | | | 768 | | | 143 | | | 26 | | | 1,050 | ACL at June 30, 2024 | | $ | 1,384 | | $ | 429 | | $ | 318 | | $ | 11,423 | | $ | 3,364 | | $ | 100 | | $ | 17,018 |
As of June 30, 2025 and December 31, 2024 there were no modifications made to borrowers experiencing financial difficulty. During the three and six months ended June 30, 2025 and 2024, there were no loans to borrowers experiencing financial difficulty that had a payment default and were modified in the twelve months prior to that default. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure.
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