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COMMITMENTS AND CREDIT RISK
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CREDIT RISK

NOTE 20 – COMMITMENTS AND CREDIT RISK

The Company extends credit for commercial real estate mortgages, residential mortgages, working capital financing and loans to businesses and consumers.

Commitments to Originate Loans and Available Lines of Credit

Commitments to originate loans and available lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments and lines of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments and lines of credit may expire without being drawn upon, the total commitment and lines of credit amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate, and residential real estate. Mortgage loans in the process of origination represent amounts that the Company plans to fund within a normal period of 60 to 90 days and are intended for sale to investors in the secondary market.

The contractual amounts of commitments to originate loans and available lines of credit as of December 31, 2025 and 2024 were as follows.

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Fixed
Rate

 

 

Variable
Rate

 

 

Fixed
Rate

 

 

Variable
Rate

 

Commitments to make loans

 

$

64,972

 

 

$

406,614

 

 

$

28,758

 

 

$

389,370

 

Mortgage loans in the process of origination

 

 

3,152

 

 

 

117

 

 

 

1,345

 

 

 

2,252

 

Unused lines of credit

 

 

195,483

 

 

 

538,731

 

 

 

162,753

 

 

 

377,091

 

At December 31, 2025, the fixed rate loan commitments have interest rates ranging from 4.99% to 9.19% and maturities ranging from 1 month to 62 months.

Standby Letters of Credit:

Standby letters of credit are irrevocable commitments issued by the Company to guarantee the performance of a customer to a third party once specified preconditions are met. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The contractual amounts of standby letters of credit as of December 31, 2025 and 2024 are listed below.

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Fixed
Rate

 

 

Variable
Rate

 

 

Fixed
Rate

 

 

Variable
Rate

 

Standby letters of credit

 

$

11,637

 

 

$

31,719

 

 

$

15,081

 

 

$

27,715