v3.25.2
Loans
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans

(4) Loans:

 

The following table presents total loans at June 30, 2025 and December 31, 2024 by portfolio segment and class of loan:

 

  

June 30, 2025

   December 31, 2024 
Commercial:          
Commercial and industrial  $73,154   $69,720 
Agricultural   61,234    80,577 
Real estate:          
Commercial   558,735    538,810 
Consumer   388,921    386,475 
Agricultural   161,579    170,401 
Construction and land   27,473    21,841 
Consumer:          
Installment   4,302    4,196 
Vehicle   2,427    3,119 
Credit cards   1,274    1,270 
Total loans   1,279,099    1,276,409 
Allowance for credit losses   (14,665)   (14,444)
Loans, net  $1,264,434   $1,261,965 

 

Detailed analysis of the allowance for credit losses by portfolio segment for the three months ended June 30, 2025 follows:

 

Three Months Ended June 30, 2025  Commercial  

Real

Estate

   Consumer   Total 
                 
Beginning balance, March 31, 2025  $1,057   $13,322   $125   $14,504 
Credit loss expense   45    44    14    103 
Recoveries on loans previously charged-off   10    48    13    71 
Less loans charged-off   0    0    (13)   (13)
                     
Ending balance, June 30, 2025  $1,112   $13,414   $139   $14,665 

 

Detailed analysis of the allowance for credit losses by portfolio segment for the six months ended June 30, 2025 follows:

 

Six Months Ended June 30, 2025  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $1,101   $13,201   $142   $14,444 
Credit loss expense   (2)   328    8    334 
Recoveries on loans previously charged-off   16    58    26    100 
Less loans charged-off   (3)   (173)   (37)   (213)
                     
Balance at June 30, 2025  $1,112   $13,414   $139   $14,665 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

Detailed analysis of the allowance for credit losses by portfolio segment for the three months ended June 30, 2024 follows:

 

Three Months Ended June 30, 2024  Commercial  

Real

Estate

   Consumer   Total 
                 
Beginning balance, March 31, 2024  $1,067   $13,825   $113   $15,005 
Credit loss expense   (54)   (28)   28    (54)
Recoveries on loans previously
charged-off		   5    11    12    28 
Less loans charged-off   0    0    (42)   (42)
                     
Ending balance, June 30, 2024  $1,018   $13,808   $111   $14,937 

 

Detailed analysis of the allowance for credit losses by portfolio segment for the six months ended June 30, 2024 follows:

 

Six Months Ended June 30, 2024  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $1,177   $14,688   $125   $15,990 
Credit loss expense   (170)   (891)   19    (1,042)
Recoveries on loans previously
charged-off		   11    11    32    54 
Less loans charged-off   0    0    (65)   (65)
                     
Balance at June 30, 2024  $1,018   $13,808   $111   $14,937 

 

Detailed analysis of the allowance for unfunded commitments for the three months ended June 30, 2025 follows:

 

Three Months Ended June 30, 2025  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $86   $1,169   $2   $1,257 
Credit loss expense (benefit)   7    (223)   0    (216)
                     
Balance at June 30, 2025  $93   $946   $2   $1,041 

 

Detailed analysis of the allowance for unfunded commitments for the six months ended June 30, 2025 follows:

 

Six Months Ended June 30, 2025  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $96   $889   $2   $987 
Credit loss expense (benefit)   (3)   57    0    54 
                     
Balance at June 30, 2025  $93   $946   $2   $1,041 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

Detailed analysis of the allowance for unfunded commitments for the three months ended June 30, 2024 follows:

 

Three Months Ended June 30, 2024  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $172   $352   $3   $527 
Credit loss expense (benefit)   10    (349)   492    153 
                     
Balance at June 30, 2024  $182   $3   $495   $680 

 

Detailed analysis of the allowance for unfunded commitments for the six months ended June 30, 2024 follows:

 

Six Months Ended June 30, 2024  Commercial  

Real

Estate

   Consumer   Total 
                 
Balance at beginning of year  $201   $621   $3   $825 
Credit loss expense (benefit)   (19)   (618)   492    (145)
                     
Balance at June 30, 2024  $182   $3   $495   $680 

 

The Bank has no commitments to loan additional funds to the borrowers of collateral dependent or non-accrual loans.

 

Certain purchased loans as later discussed in Note 4 are not considered impaired or non-accrual loans if the expected cash flows as of June 30, 2025 and December 31, 2024 exceed the carrying amount and accretion income is being recorded.

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses. The Company generally monitors credit quality indicators for all non-consumer loans using the following internally prepared ratings:

 

  ● ‘Pass’ ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable.
  ● ‘Special Mention’ ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable.
  ● ‘Substandard’ ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable.
  ● ‘Doubtful’ ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely.

 

As of June 30, 2025 and December 31, 2024, accrued interest on loans of $7,487 and $6,902, respectively, were excluded from CECL evaluation. Accrued interest on loans is recorded within accrued interest receivable on the condensed consolidated balance sheet.

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of June 30, 2025:

 

June 30,  Year 1   Year 2   Year 3   Year 4   Year 5   Prior   Revolving Loans   Total 
June 30,  2025   2024   2023   2022   2021   Prior   Revolving Loans   Total 
Commercial:                                        
Commercial and industrial                                        
Pass  $13,184   $13,773   $5,871   $6,728   $2,183   $9,533   $17,275   $68,547 
Watch   314    386    342    94    24    25    1,691    2,876 
Special Mention   0    56    302    18    9    0    841    1,226 
Substandard   182    66    26    0    231    0    0    505 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial and industrial  $13,680   $14,281   $6,541   $6,840   $2,447   $9,558   $19,807   $73,154 
Agricultural:                                        
Pass  $3,524   $1,915   $2,388   $4,921   $4,488   $348   $37,630   $55,214 
Watch   9    254    420    71    144    435    2,512    3,845 
Special Mention   0    148    769    0    131    0    1,127    2,175 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $3,533   $2,317   $3,577   $4,992   $4,763   $782   $41,269   $61,234 
Other                                        
Pass  $0   $0   $0   $0   $0   $0   $0   $0 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Other  $0   $0   $0   $0   $0   $0   $0   $0 
Real Estate                                        
Commercial                                        
Pass  $43,633   $59,606   $53,738   $113,860   $61,382   $138,225   $9,575   $480,019 
Watch   329    3,676    15,249    15,723    11,695    15,078    6,877    68,627 
Special Mention   0    61    117    1,138    1,304    1,634    0    4,254 
Substandard   0    0    2,497    0    1,295    1,306    737    5,835 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial  $43,962   $63,343   $71,601   $130,721   $75,676   $156,243   $17,189   $558,735 
Consumer                                        
Pass  $28,687   $43,903   $60,013   $81,525   $46,779   $77,648   $27,206   $365,761 
Watch   333    5,809    4,361    975    3,870    5,471    932    21,751 
Special Mention   0    0    96    67    69    175    0    407 
Substandard   0    0    0    403    41    518    40    1,002 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $29,020   $49,712   $64,470   $82,970   $50,759   $83,812   $28,178   $388,921 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

June 30,  2025   2024   2023   2022   2021   Prior   Revolving Loans   Total 
Real Estate Continued):                                        
Agricultural                                        
Pass  $6,505   $11,563   $15,326   $29,073   $26,977   $51,243   $9,386   $150,073 
Watch   126    224    1,390    1,768    162    4,956    596    9,222 
Special Mention   0    0    0    0    0    1,534    750    2,284 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $6,631   $11,787   $16,716   $30,841   $27,139   $57,733   $10,732   $161,579 
Construction and land:                                        
Pass  $6,733   $11,103   $2,113   $665   $583   $3,575   $289   $25,061 
Watch   0    699    0    1,623    0    0    90    2,412 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Construction and land  $6,733   $11,802   $2,113   $2,288   $583   $3,575   $379   $27,473 
Consumer                                        
Installment                                        
Pass  $1,374   $899   $655   $412   $354   $560   $32   $4,286 
Watch   0    0    0    8    0    0    0    8 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    8    0    0    0    8 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $1,374   $899   $655   $428   $354   $560   $32   $4,302 
Vehicle                                        
Pass  $334   $860   $645   $488   $90   $10   $0   $2,427 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Vehicle  $334   $860   $645   $488   $90   $10   $0   $2,427 
Credit cards                                        
Pass  $1,274    0    0    0    0    0    0   $1,274 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Credit Cards  $1,274   $0   $0   $0   $0   $0   $0   $1,274 
Total Loans                                        
Pass  $105,248   $143,622   $140,749   $237,672   $142,836   $281,142   $101,393   $1,152,662 
Watch   1,111    11,048    21,762    20,262    15,895    25,965    12,698    108,741 
Special Mention   0    265    1,284    1,223    1,513    3,343    2,718    10,346 
Substandard   182    66    2,523    411    1,567    1,824    777    7,350 
Doubtful   0    0    0    0    0    0    0    0 
Total  $106,541   $155,001   $166,318   $259,568   $161,811   $312,274   $117,586   $1,279,099 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

The following table presents the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and year of origination as of December 31, 2024.

 

December 31,  2024   2023   2022   2021   2020   Prior   Revolving Loans   Total 
Commercial:                                        
Commercial and industrial                                        
Pass   17,359   $9,286   $8,665   $2,960   $2,604   $7,774   $16,044   $64,692 
Watch   899    390    345    65    169    0    1,475    3,343 
Special Mention   0    506    22    0    0    0    471    999 
Substandard   353    54    0    270    9    0    0    686 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial and industrial  $18,611   $10,236   $9,032   $3,295   $2,782   $7,774   $17,990   $69,720 
Agricultural:                                        
Pass  $3,008   $3,096   $6,427   $6,235   $261   $196   $57,020   $76,243 
Watch   32    70    74    168    0    524    2,117    2,985 
Special Mention   148    782    0    90    0    0    329    1,349 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $3,188   $3,948   $6,501   $6,493   $261   $720   $59,466   $80,577 
Other                                        
Pass  $0   $0   $0   $0   $0   $0   $0   $0 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Other  $0   $-   $0  $0   $0   $0   $0   $0 
Real Estate                                        
Commercial                                        
Pass  $58,904   $68,080   $125,841   $64,969   $47,115   $104,386   $11,231   $480,526 
Watch   3,765    3,857    9,916    12,514    1,792    13,332    6,460    51,636 
Special Mention   0    0    0    215    0    1,008    35    1,258 
Substandard   0    2,525    0    1,341    460    687    377    5,390 
Doubtful   0    0    0    0    0    0    0    0 
Total Commercial  $62,669   $74,462   $135,757   $79,039   $49,367   $119,413   $18,103   $538,810 
Consumer                                        
Pass  $48,876   $65,610   $89,293   $49,563   $24,547   $61,346   $24,147   $363,382 
Watch   5,687    4,325    828    3,950    2,460    3,337    1,314    21,901 
Special Mention   0    97    67    0    78    0    0    242 
Substandard   0    0    423    43    0    464    20    950 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $54,563   $70,032   $90,611   $53,556   $27,085   $65,147   $25,481   $386,475 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

December 31,  2024   2023   2022   2021   2020   Prior   Revolving Loans   Total 
Real Estate Continued):                                        
Agricultural                                        
Pass  $12,755   $15,988   $30,714   $28,249   $11,761   $44,010   $16,528   $160,005 
Watch   0    1,393    1,800    0    1,323    3,560    0    8,076 
Special Mention   0    0    0    0    340    1,148    690    2,178 
Substandard   0    142    0    0    0    0    0    142 
Doubtful   0    0    0    0    0    0    0    0 
Total Agricultural  $12,755   $17,523   $32,514   $28,249   $13,424   $48,718   $17,218   $170,401 
Construction and land:                                        
Pass  $9,734   $4,020   $938   $603   $578   $3,426   $219   $19,518 
Watch   0    507    1,740    0    0    0    76    2,323 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Construction and land  $9,734   $4,527   $2,678   $603   $578   $3,426   $295   $21,841 
Consumer                                        
Installment                                        
Pass  $1,416   $910   $507   $514   $313   $449   $47   $4,156 
Watch   7    0    9    22    0    2    0    40 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Consumer  $1,423   $910   $516   $536   $313   $451   $47   $4,196 
Vehicle                                        
Pass  $1,225   $948   $670   $165   $36   $0   $0   $3,044 
Watch   0    0    0    0    1    0    0    1 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    64    10    0    0    0    0    74 
Doubtful   0    0    0    0    0    0    0    0 
Total Vehicle  $1,225   $1,012   $680   $165   $37   $0   $0   $3,119 
Credit cards                                        
Pass  $1,270    0    0    0    0    0    0   $1,270 
Watch   0    0    0    0    0    0    0    0 
Special Mention   0    0    0    0    0    0    0    0 
Substandard   0    0    0    0    0    0    0    0 
Doubtful   0    0    0    0    0    0    0    0 
Total Credit Cards  $1,270   $0   $0   $0   $0   $0   $0   $1,270 
Total Loans                                        
Pass  $154,547   $167,938   $263,055   $153,258   $87,215   $221,587   $125,236   $1,172,836 
Watch   10,390    10,542    14,712    16,719    5,746    20,755    11,442    90,306 
Special Mention   148    1,385    89    305    418    2,156    1,525    6,026 
Substandard   353    2,785    433    1,654    469    1,151    396    7,241 
Doubtful   0    0    0    0    0    0    0    0 
Total  $165,438   $182,650   $278,289   $171,936   $93,848   $245,649   $138,599   $1,276,409 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of June 30, 2025:

 

2025  Nonaccrual   Nonaccrual With No ACL   Loans Past Due Over 89 Days and Still Accruing 
             
Commercial:               
Commercial  $231   $11   $0 
Agricultural   0    0    0 
Real estate:               
Commercial real estate   2,879    449    0 
Agricultural real estate   0    237    0 
Consumer real estate   235    0    411 
Consumer:               
Installment   0    0    8 
                
Total  $3,345   $697   $419 

 

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of December 31, 2024:

 

2024  Nonaccrual   Nonaccrual With No ACL   Loans Past Due Over 89 Days and Still Accruing 
             
Commercial:               
Commercial  $279   $9   $0 
Agricultural   0    0    0 
Real estate:               
Commercial real estate   2,974    477    353 
Agricultural real estate   0    0    0 
Consumer real estate   292    292    193 
Consumer:               
Installment   24    0    49 
                
Total  $3,569   $778   $595 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

Loan aging information by class of loan at June 30, 2025 and December 31, 2024:

 

June 30, 2025 

Loans Past Due 30-59 Days

  

Loans Past Due 60-89 Days

  

Loans Past Due 90+ Days

  

Total Past Due

 
June 30, 2025 

Loans Past Due

30-59 Days

  

Loans Past Due

60-89 Days

  

Loans Past Due

90+ Days

  

Total

Past Due

 
                 
Commercial:                    
Commercial  $227   $27   $0   $254 
Agricultural   32    125    0    157 
Real estate:                    
Commercial real estate   1,147    68    2,449    3,664 
Agricultural real estate   1,467    405    0    1,872 
Consumer real estate   2,664    780    410    3,854 
Consumer:                    
Installment   34    1    8    43 
                     
Totals  $5,571   $1,406   $2,867   $9,844 

 

December 31, 2024 

Loans Past Due

30-59 Days

  

Loans Past Due

60-89 Days

  

Loans Past Due

90+ Days

  

Total

Past Due

 
                 
Commercial:                    
Commercial  $97   $0   $9   $106 
Agricultural   202    9    0    211 
Real estate:                    
Commercial real estate   374    11    3,327    3,712 
Agricultural real estate   1,613    0    0    1,613 
Consumer real estate   1,999    849    375    3,223 
Consumer:                    
Installment   116    48    73    237 
                     
Totals  $4,401   $917   $3,784   $9,102 

 

 

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

 

(4) Loans (continued):

 

The following table represents collateral dependent loans. A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2025:

 

2025  Commercial  

Real Estate

   Vehicle   Total 
2025  Commercial  

Real

Estate

   Vehicle   Total 
                 
Commercial and industrial  $271   $0   $0   $271 
Commercial other   0    0    0    0 
Consumer vehicle   0    0    8    8 
Consumer other   0    0    0    0 
Agricultural real estate   0    0    0    0 
Commercial real estate   0    5,997    0    5,997 
Residential real estate   0    1,093    0    1,093 
                     
Totals  $271   $7,090   $8   $7,369 

 

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2024:

 

2024  Commercial  

Real

Estate

   Vehicle   Total 
                 
Commercial and industrial  $324   $0   $0   $324 
Commercial other   0    0    0    0 
Consumer vehicle   0    0    74    74 
Consumer other   0    0    0    0 
Agricultural real estate   0    142    0    142 
Commercial real estate   375    5,303    0    5,678 
Residential real estate   0    1,040    0    1,040 
                     
Totals  $699   $6,485   $74   $7,258 

 

The Company had no loans modified to borrowers experiencing financial difficulty as of June 30, 2025 and December 31, 2024.