Loans

6 Months Ended

Jun. 30, 2025

Loans

Loans

(5) Loans

Major classifications of loans at June 30, 2025 and December 31, 2024 are summarized as follows:

(Dollars in thousands)
	June 30, 2025			December 31, 2024
Real estate loans:
Construction and land development	$	122,087			122,328
Single-family residential		397,717			384,509
Commercial		491,602			471,444
Multifamily and farmland		71,092			69,671
Total real estate loans		1,082,498			1,047,952
Loans not secured by real estate:
Commercial		57,835			63,837
Farm		467			401
Consumer		6,126			6,475
All other		11,049			19,739
Total loans		1,157,975			1,138,404
Less allowance for credit losses		(9,792	)		(9,995	)
Total net loans	$	1,148,183			1,128,409

The Bank makes loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties and also in Mecklenburg, Wake, Rowan and Forsyth counties of North Carolina. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market. Risk characteristics of the major components of the Bank’s loan portfolio are discussed below:

· Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral.

· Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.

· Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over the loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property.

· Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business.

· Multifamily and farmland loans – Decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans.

Loans are considered past due if the required principal and interest payments have not been received within 30 days of the date such payments were due. Loans are placed on non-accrual status 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 provisions. Generally, a loan is placed on non-accrual status when it is over 90 days past due and there is reasonable doubt that all principal will be collected. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The following tables present an age analysis of past due loans, by loan type, as of June 30, 2025 and December 31, 2024:

June 30, 2025
(Dollars in thousands)
	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	241		33		274		121,813		122,087		-
Single-family residential		1,138		4,164		5,302		392,415		397,717		-
Commercial		-		409		409		491,193		491,602		-
Multifamily and farmland		-		-		-		71,092		71,092		-
Total real estate loans		1,379		4,606		5,985		1,076,513		1,082,498		-
Loans not secured by real estate:
Commercial		272		209		481		57,354		57,835		-
Farm		-		-		-		467		467		-
Consumer		15		7		22		6,104		6,126		-
All other		-		-		-		11,049		11,049		-
Total loans	$	1,666		4,822		6,488		1,151,487		1,157,975		-

December 31, 2024
(Dollars in thousands)
	Loans 30-89 Days Past Due		Nonaccrual Loans		Total Past Due Loans		Total Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Real estate loans:
Construction and land development	$	131		37		168		122,160		122,328		-
Single-family residential		5,434		3,720		9,154		375,355		384,509		-
Commercial		87		426		513		470,931		471,444		-
Multifamily and farmland		-		-		-		69,671		69,671		-
Total real estate loans		5,652		4,183		9,835		1,038,117		1,047,952		-
Loans not secured by real estate:
Commercial		360		248		608		63,229		63,837		-
Farm		-		-		-		401		401		-
Consumer		33		9		42		6,433		6,475		-
All other		-		-		-		19,739		19,739		-
Total loans	$	6,045		4,440		10,485		1,127,919		1,138,404		-

The following table presents non-accrual loans as of June 30, 2025 and December 31, 2024: 

	June 30, 2025
	Nonaccrual Loans		Nonaccrual Loans		Total
	With No		With		Nonaccrual
(Dollars in thousands)	Allowance		Allowance		Loans
Real estate loans:
Construction and land development	$	-		33		33
Single-family residential		1,320		2,845		4,165
Commercial		409		-		409
Multifamily and farmland		-		-		-
Total real estate loans		1,729		2,878		4,607
Loans not secured by real estate:
Commercial		186		22		208
Consumer		-		7		7
Total	$	1,915		2,907		4,822

	December 31, 2024
	Nonaccrual Loans		Nonaccrual Loans		Total
	With No		With		Nonaccrual
(Dollars in thousands)	Allowance		Allowance		Loans
Real estate loans:
Construction and land development	$	37		-		37
Single-family residential		3,720		-		3,720
Commercial		426		-		426
Multifamily and farmland		-		-		-
Total real estate loans		4,183		-		4,183
Loans not secured by real estate:
Commercial		248		-		248
Consumer		9		-		9
Total	$	4,440		-		4,440

No interest income was recognized on non-accrual loans for the six months ended June 30, 2025 and 2024.

A loan may be individually evaluated for determining the allowance for credit losses when it is determined that it does not share similar risk characteristics with other assets. Non-accrual loans with an outstanding balance of $250,000 or greater are individually evaluated and totaled $1.9 million and $1.6 million at June 30, 2025 and December 31, 2024, respectively. Non-accrual loans evaluated collectively as a pool totaled $2.9 million and $2.8 million at June 30, 2025 and December 31, 2024, respectively. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans require an analysis of the collateral. The fair value of the collateral is discounted by estimated liquidation costs. If the discounted fair value of the collateral is greater than the amortized loan balance, no allowance is required. Otherwise the difference between the balance and the collateral is charged off if deemed uncollectible.

The following table details the amortized cost of collateral dependent loans and any related allowance at June 30, 2025 and December 31, 2024.

	June 30, 2025				December 31, 2024
			Allowance for				Allowance for
(Dollars in thousands)	Amortized Cost		Credit Losses		Amortized Cost		Credit Losses
Real estate loans:
Construction and land development	$	33		1		37		-
Single-family residential		4,164		25		3,720		-
Commercial		409		-		426		-
Multifamily and farmland		-		-		-		-
Total real estate loans		4,606		26		4,183		-
Loans not secured by real estate:
Commercial		209		-		248		-
Consumer		-		-		-		-
Total	$	4,815		26		4,431		-

The following tables provide a breakdown of collateral dependent loans by collateral type and collateral coverage at June 30, 2025 and 2024. These tables also show non-accrual loans not considered to be collateral dependent at June 30, 2025 and December 31, 2024.

	June 30, 2025
									Financial Assets
(Dollars in thousands)									Not Considered
	Residential Property		Developed Land		Commercial Property		Business Assets		Collateral Dependent		Total
Real estate loans:
Construction and land development	$	-		33		-		-		-		33
Single-family residential		4,164		-		-		-		-		4,164
Commercial		-		-		409		-		-		409
Multifamily and farmland		-		-		-		-		-		-
Total real estate loans		4,164		33		409		-		-		4,606
Loans not secured by real estate:
Commercial		-		-		-		209		-		209
Consumer		-		-		-		-		7		7
Total	$	4,164		33		409		209		7		4,822
Collateral Value	$	12,220		88		832		215

	December 31, 2024
									Financial Assets
(Dollars in thousands)									Not Considered
	Residential Property		Developed  Land		Commercial Property		Business Assets		Collateral Dependent		Total
Real estate loans:
Construction and land development	$	-		37		-		-		-		37
Single-family residential		3,720		-		-		-		-		3,720
Commercial		-		-		426		-		-		426
Multifamily and farmland		-		-		-		-		-		-
Total real estate loans		3,720		37		426		-		-		4,183
Loans not secured by real estate:
Commercial		-		-		-		248		-		248
Consumer		-		-		-		-		9		9
Total	$	3,720		37		426		248		9		4,440
Collateral Value	$	9,648		88		944		272

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon 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. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

A change to the allowance for credit losses is evaluated based on the nature of the modification. Occasionally, the Bank modifies loans by providing principal forgiveness on certain 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 Bank may 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.

No loans to borrowers experiencing financial difficulty were modified during the three months ended June 30, 2025. The following table shows the amortized cost basis at June 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the three months ended June 30, 2024, disaggregated by loan class and type of concession granted.

(Dollars in thousands)
	Amortized Cost Basis at June 30, 2024		% of Loan Class			Modification Type	Financial Effect
Loan class:
Single-family residential	$	201		0.05	%	Interest rate reduction	Adjustable rate loan converted to fixed rate loan
Total	$	201

No loans to borrowers experiencing financial difficulty were modified during the six months ended June 30, 2025. The following table shows the amortized cost basis at June 30, 2024 of the loans to borrowers experiencing financial difficulty that were modified during the six months ended June 30, 2024, disaggregated by loan class and type of concession granted.

(Dollars in thousands)
	Amortized Cost Basis at June 30, 2024		% of Loan Class			Modification Type	Financial Effect
Loan class:
Single-family residential	$	201		0.05	%	Interest rate reduction	Adjustable rate loan converted to fixed rate loan
Commercial not secured by real estate		73		0.11	%	Term extension	Line of credit converted to amortizing term loan
Total	$	274

The Bank closely monitors the performance of those loans that are modified because borrowers are experiencing financial difficulty so as to understand the effectiveness of its modification efforts. The following tables show the performance of loans that were modified in the six months ended June 30, 2024.

June 30, 2024
(Dollars in thousands)
	Payment Status (Amortized Cost Basis)
	Current		30 - 89 Days Past Due		90 + Days Past Due
Loan type:
Single-family residential	$	201
Commercial not secured by real estate		73		-		-
Total	$	274		-		-

Management uses several measures to assess and monitor the credit risks in the loan portfolio, including a loan grading system that begins upon loan origination and continues until the loan is collected or collectability becomes doubtful. Upon loan origination, the Bank’s originating loan officer evaluates the quality of the loan and assigns one of eight risk grades. The loan officer monitors the loan’s performance and credit quality and makes changes to the credit grade as conditions warrant. When originated or renewed, all loans over a certain dollar amount receive in-depth reviews and risk assessments by the Bank’s Credit Administration. Before making any changes in these risk grades, management considers assessments as determined by an independent third-party credit review firm (as described below), regulatory examiners and the Bank’s Credit Administration. Any issues regarding the risk assessments are addressed by the Bank’s senior credit administrators and factored into management’s decision to originate or renew the loan. The Bank Board reviews, on a monthly basis, an analysis of the Bank’s reserves relative to the range of reserves estimated by the Bank’s Credit Administration.

As an additional measure, the Bank engages an independent third party to review the underwriting, documentation and risk grading analyses. This independent third party reviews and evaluates loan relationships greater than or equal to $1.5 million as well as a periodic sample of commercial relationships with exposures below $1.5 million, excluding loans in default and loans in process of litigation or liquidation. The third party’s evaluation and report is shared with management and the Bank Board.

Management considers certain commercial loans with weak credit risk grades to be individually impaired and measures such impairment based upon available cash flows and the value of the collateral. Allowance or reserve levels are estimated for all other graded loans in the portfolio based on their assigned credit risk grade, type of loan and other matters related to credit risk.

Management uses the information developed from the procedures described above in evaluating and grading the loan portfolio. This continual grading process is used to monitor the credit quality of the loan portfolio and to assist management in estimating the allowance. The provision for credit losses charged or credited to earnings is based upon management’s judgment of the amount necessary to maintain the allowance at a level appropriate to absorb probable incurred losses in the loan portfolio at the balance sheet date. The amount of the allowance, and any provision, is dependent upon many factors, including growth and changes in the composition of the loan portfolio, net charge-offs, delinquencies, management’s assessment of loan portfolio quality, the value of collateral, and other macro-economic factors and trends. An evaluation of these factors is performed quarterly by management through an analysis of the appropriateness of the allowance.

The following tables present changes in the allowance for credit losses for the three and six months ended June 30, 2025 and 2024.

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential			Commercial			Multifamily and Farmland			Commercial			Farm		Consumer and All Other			Total
Three months ended June 30, 2025
Allowance for credit losses:
Beginning balance	$	3,463			3,362			2,337			242			439			1		203			10,047
Charge-offs		-			-			-			-			(37	)		-		(135	)		(172	)
Recoveries		-			39			-			-			25			-		38			102
Provision (recovery) for
loan losses (1)		(187	)		15			(53	)		(11	)		(21	)		-		72			(185	)
Ending balance	$	3,276			3,416			2,284			231			406			1		178			9,792
Allowance for credit loss-loans	$	3,276			3,416			2,284			231			406			1		178			9,792
Allowance for credit losses
loan commitments		1,257			-			-			-			-			-		1			1,258
Total allowance for credit losses	$	4,533			3,416			2,284			231			406			1		179			11,050
Six months ended June 30, 2025
Allowance for credit losses:
Beginning balance	$	3,385			3,386			2,322			246			446			1		209			9,995
Charge-offs		-			(5	)		-			-			(37	)		-		(242	)		(284	)
Recoveries		-			44			-			-			30			-		109			183
Provision (recovery) for
loan losses (1)		(109	)		(9	)		(38	)		(15	)		(33	)		-		102			(102	)
Ending balance	$	3,276			3,416			2,284			231			406			1		178			9,792
Allowance for credit loss-loans	$	3,276			3,416			2,284			231			406			1		178			9,792
Allowance for credit losses
loan commitments		1,257			-			-			-			-			-		1			1,258
Total allowance for credit losses	$	4,533			3,416			2,284			231			406			1		179			11,050

(1) Excludes provision for credit losses related to unfunded commitments. Note 7, "Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

(Dollars in thousands)
	Real Estate Loans
	Construction and Land Development			Single-Family Residential			Commercial			Multifamily and Farmland			Commercial			Farm			Consumer and All Other			Total
Three months ended June 30, 2024
Allowance for credit losses:
Beginning balance	$	3,680			3,597			2,345			313			672			2			238			10,847
Charge-offs		-			(126	)		-			-			(301	)		-			(145	)		(572	)
Recoveries		-			15			1			-			34			-			26			76
Provision (recovery) for
loan losses (1)		(362	)		(2	)		28			(42	)		(37	)		(1	)		81			(335	)
Ending balance	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit loss-loans	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit losses
loan commitments		1,541			1			1			-			19			-			3			1,565
Total allowance for credit losses	$	4,859			3,485			2,375			271			387			1			203			11,581
Six months ended June 30, 2024
Allowance for credit losses:
Beginning balance	$	3,913			3,484			2,317			268			812			2			245			11,041
Charge-offs		-			(126	)		-			-			(747	)		-			(355	)		(1,228	)
Recoveries		-			71			203			-			39			-			62			375
Provision (recovery) for
loan losses (1)		(595	)		55			(146	)		3			264			(1	)		248			(172	)
Ending balance	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit loss-loans	$	3,318			3,484			2,374			271			368			1			200			10,016
Allowance for credit losses
loan commitments		1,541			1			1			-			19			-			3			1,565
Total allowance for credit losses	$	4,859			3,485			2,375			271			387			1			203			11,581

(1) Excludes provision for credit losses related to unfunded commitments. Note 7, "Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

The Bank utilizes several credit quality indicators to manage credit risk in an ongoing manner. The Bank uses an internal risk grade system that categorizes loans into pass, watch or substandard categories.

The Bank uses the following credit quality indicators:

· Pass – Includes loans ranging from excellent quality with a minimal amount of credit risk to loans with higher risk and servicing needs but still are considered to be acceptable. The higher risk loans in this category are not problem credits presently, but may be in the future if the borrower is unable to change its present course.

· Watch – These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date.

· Substandard – A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

· Doubtful – Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus 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.

· Loss – Loans classified Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future.

The following table presents by credit quality indicator, loan class and year of origination, the amortized cost of the Bank’s loans as of June 30, 2025.

	Term Loans by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Loans
June 30, 2025
Real Estate Loans Construction and land development
Pass	$	23,478		37,209		23,583		19,656		4,811		7,969		-		4,884		121,590
Watch		-		-		-		-		439		-		-		-		439
Substandard		-		-		-		-		-		58		-		-		58
Total Construction and land development	$	23,478		37,209		23,583		19,656		5,250		8,027		-		4,884		122,087
Single family
Pass	$	17,019		26,540		37,468		71,857		42,161		80,599		115,316		-		390,960
Watch		-		-		-		-		-		1,862		-		-		1,862
Substandard		-		-		30		1,320		94		3,136		315		-		4,895
Total single family	$	17,019		26,540		37,498		73,177		42,255		85,597		115,631		-		397,717
Commercial
Pass	$	31,215		59,529		45,484		138,457		68,157		142,594		2,698		-		488,134
Watch		-		-		-		449		-		2,218		-		-		2,667
Substandard		-		-		-		-		-		801		-		-		801
Total commercial	$	31,215		59,529		45,484		138,906		68,157		145,613		2,698		-		491,602
Multifamily and farmland
Pass	$	6,696		984		8,145		20,293		20,253		14,681		-		-		71,052
Watch		-		-		-		-		-		40		-		-		40
Substandard		-		-		-		-		-		-		-		-		-
Total multifamily and farmland	$	6,696		984		8,145		20,293		20,253		14,721		-		-		71,092
Total real estate loans	$	78,408		124,262		114,710		252,032		135,915		253,958		118,329		4,884		1,082,498
Loans not secured by real estate Commercial
Pass	$	4,816		7,687		11,562		4,068		2,319		10,612		16,250		-		57,314
Watch		-		-		-		136		16		160		-		-		312
Substandard		-		-		22		187		-		-		-		-		209
Total Commercial	$	4,816		7,687		11,584		4,391		2,335		10,772		16,250		-		57,835
Farm
Pass	$	105		46		162		6		-		-		148		-		467
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total farm	$	105		46		162		6		-		-		148		-		467
Consumer
Pass	$	1,033		1,169		846		493		123		115		2,321		-		6,100
Watch		-		-		-		19		-		-		-		-		19
Substandard		-		-		-		-		-		7		-		-		7
Total consumer	$	1,033		1,169		846		512		123		122		2,321		-		6,126
All other
Pass	$	1,144		455		48		6,147		326		2,851		78		-		11,049
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total all other	$	1,144		455		48		6,147		326		2,851		78		-		11,049
Total loans not secured by real estate	$	7,098		9,357		12,640		11,056		2,784		13,745		18,797		-		75,477
Total loans	$	85,506		133,619		127,350		263,088		138,699		267,703		137,126		4,884		1,157,975

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs for the six months ended June 30, 2025.

June 30, 2025	Gross Loan Charge-offs by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Loans
Real estate loans:
Construction and land development	$	-		-		-		-		-		-		-		-		-
Single-family residential		-		-		-		-		-		-		5		-		5
Commercial		-		-		-		-		-		-		-		-		-
Multifamily and farmland		-		-		-		-		-		-		-		-		-
Total real estate loans		-		-		-		-		-		-		5		-		5
Loans not secured by real estate:
Commercial		-		-		-		37		-		-		-		-		37
Consumer		-		6		-		-		-		236		-		-		242
All other		-		-		-		-		-		-		-		-		-
Total gross charge-offs	$	-		6		-		37		-		236		5		-		284

The following table presents by credit quality indicator, loan class and year of origination, the amortized cost of the Bank’s loans as of December 31, 2024.

	Term Loans by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2024		2023		2022		2021		2020		Prior		Loans		Term Loans		Loans
December 31, 2024
Real Estate Loans Construction and land development
Pass	$	41,171		29,503		34,495		6,836		5,792		4,020		-		-		121,817
Watch		-		-		-		443		-		-		-		-		443
Substandard		-		-		-		-		-		68		-		-		68
Total Construction and  land development	$	41,171		29,503		34,495		7,279		5,792		4,088		-		-		122,328
Single family
Pass	$	22,169		35,865		73,663		43,900		22,363		66,074		113,067		-		377,101
Watch		-		-		-		-		-		1,469		993		-		2,462
Substandard		-		31		1,000		-		124		3,467		324		-		4,946
Total single family	$	22,169		35,896		74,663		43,900		22,487		71,010		114,384		-		384,509
Commercial
Pass	$	56,411		46,589		135,881		71,066		58,223		97,122		2,296		-		467,588
Watch		-		-		-		-		87		2,943		-		-		3,030
Substandard		-		-		-		-		400		426		-		-		826
Total commercial	$	56,411		46,589		135,881		71,066		58,710		100,491		2,296		-		471,444
Multifamily and farmland
Pass	$	998		8,455		20,786		20,638		6,055		12,186		443		-		69,561
Watch		-		-		-		-		-		43		-		-		43
Substandard		-		-		-		-		-		67		-		-		67
Total multifamily and farmland	$	998		8,455		20,786		20,638		6,055		12,296		443		-		69,671
Total real estate loans	$	120,749		120,443		265,825		142,883		93,044		187,885		117,123		-		1,047,952
Loans not secured by real estate
Commercial
Pass	$	9,153		11,335		6,045		3,107		1,707		11,864		20,032		-		63,243
Watch		-		-		136		19		23		167		1		-		346
Substandard		-		25		223		-		-		-		-		-		248
Total Commercial	$	9,153		11,360		6,404		3,126		1,730		12,031		20,033		-		63,837
Farm
Pass	$	53		195		17		50		-		-		86		-		401
Watch		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total farm	$	53		195		17		50		-		-		86		-		401
Consumer
Pass	$	1,777		1,232		666		176		99		64		2,397		-		6,411
Watch		-		-		53		-		-		-		-		-		53
Substandard		-		-		-		-		-		8		3		-		11
Total consumer	$	1,777		1,232		719		176		99		72		2,400		-		6,475
All other
Pass	$	972		-		10,002		376		217		2,878		5,164		-		19,609
Watch		-		-		-		-		-		130		-		-		130
Substandard		-		-		-		-		-		-		-		-		-
Total all other	$	972		-		10,002		376		217		3,008		5,164		-		19,739
Total loans not secured by real estate	$	11,955		12,787		17,142		3,728		2,046		15,111		27,683		-		90,452
Total loans	$	132,704		133,230		282,967		146,611		95,090		202,996		144,806		-		1,138,404

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs during the year ended December 31, 2024.

December 31, 2024	Gross Loan Charge-offs by Origination Year														Revolving
															Loans
(dollars in thousands)													Revolving		Converted to		Total
	2024		2023		2022		2021		2020		Prior		Loans		Term Loans		Loans
Real estate loans:
Construction and land development	$	-		-		-		-		-		-		-		-		-
Single-family residential		-		-		126		-		-		5		-		-		131
Commercial		-		-		-		-		-		-		-		-		-
Multifamily and farmland		-		-		-		-		-		-		-		-		-
Total real estate loans		-		-		126		-		-		5		-		-		131
Loans not secured by real estate:
Commercial		-		447		397		74		179		37		-		-		1,134
Consumer		5		37		9		-		1		557		-		-		609
All other		-		-		-		-		-		107		-		-		107
Total gross charge-offs	$	5		484		532		74		180		706		-		-		1,981