Significant Estimates and Concentrations |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Significant Estimates and Concentrations [Abstract] | |
| Significant Estimates and Concentrations | Note 11. Significant Estimates and Concentrations
The Company originates primarily real estate, commercial, and consumer loans to customers primarily in its markets in Kentucky, North Carolina and Tennessee. The ability of the majority of the Company’s customers to honor their contractual loan obligations is dependent on the economy in the local area.
At both March 31, 2026 and December 31, 2025, approximately 90% of the Company’s loan portfolio was concentrated in loans secured by real estate, a substantial portion of which is located in the Company’s primary market areas. Accordingly, the ultimate collectability of the loan portfolio and recovery of the carrying amount of foreclosed assets is susceptible to changes in real estate conditions in the Company’s primary market area. The other concentrations of credit by type of loan are set forth in Note 3.
Current economic conditions:
Management is confident that current underwriting standards have achieved sufficient loan-to-value and operating margins to meet potential changes in the economic environments in the markets we serve.
The accompanying financial statements have been prepared using values and information currently available to the Company.
Given the volatility of current economic conditions, the values of assets and liabilities recorded in the financial statements could change rapidly, resulting in material future adjustments in asset values, the ACL and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity. |