Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2025

Loans Held for Sale

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of September 30, 2025 and December 31, 2024. The Company designates loans held for sale as either carried at fair value or the lower of cost or fair value at loan level at origination.

Loans Held for Investment

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:


	September 30, 2025			December 31, 2024
(In Thousands)	Amortized Cost	Unpaid Principal	Difference	Amortized Cost	Unpaid Principal	Difference
Commercial & industrial loans	$474,849	$477,205	($2,356)	$437,922	$440,163	($2,241)
Commercial real estate:
Owner occupied properties	437,995	439,971	(1,976)	418,092	420,060	(1,968)
Non-owner occupied and multifamily properties	713,315	717,576	(4,261)	615,662	619,431	(3,769)
Residential real estate:
1-4 family residential properties secured by first liens	216,598	216,690	(92)	270,966	270,535	431
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	66,279	65,698	581	49,160	48,857	303
1-4 family residential construction loans	37,238	37,428	(190)	39,516	39,789	(273)
Other construction, land development and raw land loans	183,081	184,447	(1,366)	212,561	214,068	(1,507)
Obligations of states and political subdivisions in the US	32,341	32,340	1	29,471	29,468	3
Agricultural production, including commercial fishing	47,125	47,325	(200)	45,840	46,069	(229)
Consumer loans	8,335	8,237	98	7,638	7,562	76
Other loans	1,814	1,866	(52)	2,435	2,448	(13)
Total	2,218,970	2,228,783	(9,813)	2,129,263	2,138,450	(9,187)
Allowance for credit losses	(23,357)			(22,020)
Net loans	$2,195,613	$2,228,783	($9,813)	$2,107,243	$2,138,450	($9,187)

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $9.8 million at September 30, 2025 and $9.2 million at December 31, 2024.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $9.8 million and $8.4 million at September 30, 2025 and December 31, 2024, respectively, and is included in other assets in the Consolidated Balance Sheets.

Allowance for Credit Losses

The table below presents activity in the ACL related to loans held for investment for the periods indicated.


Three Months Ended September 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2025
Commercial & industrial loans	$7,508	$1,199	($1,300)	$105	$7,512
Commercial real estate:
Owner occupied properties	2,271	92	—	30	2,393
Non-owner occupied and multifamily properties	4,183	179	—	—	4,362
Residential real estate:
1-4 family residential properties secured by first liens	4,693	271	—	—	4,964
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	928	76	—	5	1,009
1-4 family residential construction loans	270	12	—	—	282
Other construction, land development and raw land loans	2,308	113	—	—	2,421
Obligations of states and political subdivisions in the US	135	(3)	—	—	132
Agricultural production, including commercial fishing	197	(9)	—	1	189
Consumer loans	82	38	(34)	1	87
Other loans	10	(4)	—	—	6
Total	$22,585	$1,964	($1,334)	$142	$23,357
2024
Commercial & industrial loans	$4,047	$153	$—	$104	$4,304
Commercial real estate:
Owner occupied properties	2,963	(42)	—	—	2,921
Non-owner occupied and multifamily properties	3,499	273	—	—	3,772
Residential real estate:
1-4 family residential properties secured by first liens	3,489	571	—	—	4,060
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	665	62	—	6	733
1-4 family residential construction loans	180	62	—	—	242
Other construction, land development and raw land loans	2,526	639	—	—	3,165
Obligations of states and political subdivisions in the US	100	—	—	—	100
Agricultural production, including commercial fishing	157	(3)	—	1	155
Consumer loans	61	25	(15)	—	71
Other loans	7	(2)	—	—	5
Total	$17,694	$1,738	($15)	$111	$19,528


Nine Months Ended September 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2025
Commercial & industrial loans	$5,800	$3,017	($1,489)	$184	$7,512
Commercial real estate:
Owner occupied properties	2,944	(581)	—	30	2,393
Non-owner occupied and multifamily properties	3,967	395	—	—	4,362
Residential real estate:
1-4 family residential properties secured by first liens	4,364	600	—	—	4,964
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	775	215	—	19	1,009
1-4 family residential construction loans	230	52	—	—	282
Other construction, land development and raw land loans	3,589	(1,168)	—	—	2,421
Obligations of states and political subdivisions in the US	106	26	—	—	132
Agricultural production, including commercial fishing	169	16	—	4	189
Consumer loans	71	62	(50)	4	87
Other loans	5	1	—	—	6
Total	$22,020	$2,635	($1,539)	$241	$23,357
2024
Commercial & industrial loans	$3,438	$684	$—	$182	$4,304
Commercial real estate:
Owner occupied properties	2,867	54	—	—	2,921
Non-owner occupied and multifamily properties	3,294	478	—	—	3,772
Residential real estate:
1-4 family residential properties secured by first liens	3,470	590	—	—	4,060
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	551	166	—	16	733
1-4 family residential construction loans	191	51	—	—	242
Other construction, land development and raw land loans	3,127	38	—	—	3,165
Obligations of states and political subdivisions in the US	80	20	—	—	100
Agricultural production, including commercial fishing	168	7	(25)	5	155
Consumer loans	81	4	(15)	1	71
Other loans	3	2	—	—	5
Total	$17,270	$2,094	($40)	$204	$19,528

The following table shows gross charge-offs by year of loan origination for the periods indicated:


Nine Months Ended September 30,

(In Thousands)	2025	2024	2023	2022	2021	Prior	Total
2025
Commercial & industrial loans	$—	$152	$—	$—	$1,337	$—	$1,489










Consumer loans	10	—	6	—	—	34	50

Total	$10	$152	$6	$—	$1,337	$34	$1,539

Credit Quality Information

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. Loans graded 7 or higher are considered “criticized” loans. A description of the general characteristics of the AQR risk classifications are as follows:

Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The borrower has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses.

Criticized loans:

Special Mention – 7: A “special mention” credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset at some future date.

Substandard – 8: A “substandard” credit is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must 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 – 9: An asset classified “doubtful” has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety.

Loss – 10: An asset classified “loss” is considered uncollectible and of such little value that its continuance on the books 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 basically worthless asset, even though partial recovery may be affected in the future.

The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.


September 30, 2025	2025	2024	2023	2022	2021	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$78,803	$92,276	$61,482	$102,490	$26,749	$65,082	$426,882
Criticized	3,342	3,774	7,434	16,718	10,090	6,609	47,967
Total commercial & industrial loans	$82,145	$96,050	$68,916	$119,208	$36,839	$71,691	$474,849

Commercial real estate:
Owner occupied properties
Pass	$28,761	$76,787	$26,643	$68,454	$58,411	$157,679	$416,735


Criticized	6,002	—	—	3,714	—	11,544	21,260
Total commercial real estate owner occupied properties	$34,763	$76,787	$26,643	$72,168	$58,411	$169,223	$437,995

Non-owner occupied and multifamily properties
Pass	$86,594	$119,808	$67,965	$139,372	$68,335	$220,286	$702,360
Criticized	—	—	—	1,148	—	9,807	10,955
Total commercial real estate non-owner occupied and multifamily properties	$86,594	$119,808	$67,965	$140,520	$68,335	$230,093	$713,315

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$34,925	$56,016	$78,120	$33,950	$2,596	$9,983	$215,590
Criticized	—	—	518	313	—	177	1,008
Total residential real estate 1-4 family residential properties secured by first liens	$34,925	$56,016	$78,638	$34,263	$2,596	$10,160	$216,598

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$19,204	$20,059	$10,878	$5,726	$2,947	$7,004	$65,818
Criticized	—	—	372	—	—	89	461
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$19,204	$20,059	$11,250	$5,726	$2,947	$7,093	$66,279

1-4 family residential construction loans
Pass	$19,745	$7,232	$—	$—	$—	$10,261	$37,238
Criticized	—	—	—	—	—	—	—
Total residential real estate 1-4 family residential construction loans	$19,745	$7,232	$—	$—	$—	$10,261	$37,238

Other construction, land development and raw land loans
Pass	$40,608	$55,620	$53,712	$14,549	$9,273	$7,542	$181,304
Criticized	—	—	—	282	27	1,468	1,777
Total other construction, land development and raw land loans	$40,608	$55,620	$53,712	$14,831	$9,300	$9,010	$183,081

Obligations of states and political subdivisions in the US
Pass	$—	$4,389	$—	$27,952	$—	$—	$32,341
Criticized	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$4,389	$—	$27,952	$—	$—	$32,341

Agricultural production, including commercial fishing
Pass	$1,601	$7,995	$8,189	$9,817	$15,455	$3,931	$46,988
Criticized	—	—	—	—	137	—	137
Total agricultural production, including commercial fishing	$1,601	$7,995	$8,189	$9,817	$15,592	$3,931	$47,125

Consumer loans
Pass	$2,970	$1,985	$1,791	$542	$37	$997	$8,322
Criticized	—	10	—	3	—	—	13
Total consumer loans	$2,970	$1,995	$1,791	$545	$37	$997	$8,335

Other loans
Pass	$—	$—	$235	$79	$277	$1,223	$1,814
Criticized	—	—	—	—	—	—	—
Total other loans	$—	$—	$235	$79	$277	$1,223	$1,814

Total loans
Pass	$313,211	$442,167	$309,015	$402,931	$184,080	$483,988	$2,135,392
Criticized	9,344	3,784	8,324	22,178	10,254	29,694	83,578
Total loans	$322,555	$445,951	$317,339	$425,109	$194,334	$513,682	$2,218,970

Total pass loans	$313,211	$442,167	$309,015	$402,931	$184,080	$483,988	$2,135,392
Government guarantees	(12,013)	(34,650)	(19,438)	(4,818)	(11,325)	(14,465)	(96,709)
Total pass loans, net of government guarantees	$301,198	$407,517	$289,577	$398,113	$172,755	$469,523	$2,038,683


Total criticized loans	$9,344	$3,784	$8,324	$22,178	$10,254	$29,694	$83,578
Government guarantees	—	—	(1,686)	(16,939)	(8,923)	(12,555)	(40,103)
Total criticized loans, net government guarantees	$9,344	$3,784	$6,638	$5,239	$1,331	$17,139	$43,475


December 31, 2024	2024	2023	2022	2021	2020	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$112,361	$70,871	$120,377	$37,628	$10,581	$40,288	$392,106
Criticized	201	3,386	16,888	14,973	5,759	4,609	45,816
Total commercial & industrial loans	$112,562	$74,257	$137,265	$52,601	$16,340	$44,897	$437,922

Commercial real estate:
Owner occupied properties
Pass	$68,074	$48,655	$74,611	$64,234	$74,662	$74,987	$405,223
Criticized	—	—	492	—	348	12,029	12,869
Total commercial real estate owner occupied properties	$68,074	$48,655	$75,103	$64,234	$75,010	$87,016	$418,092

Non-owner occupied and multifamily properties
Pass	$114,879	$70,806	$104,924	$73,008	$65,592	$175,349	$604,558
Criticized	—	—	1,166	30	—	9,908	11,104
Total commercial real estate non-owner occupied and multifamily properties	$114,879	$70,806	$106,090	$73,038	$65,592	$185,257	$615,662

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$103,919	$108,642	$43,562	$3,279	$4,228	$6,978	$270,608
Criticized	—	205	—	—	—	153	358
Total residential real estate 1-4 family residential properties secured by first liens	$103,919	$108,847	$43,562	$3,279	$4,228	$7,131	$270,966

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$18,946	$13,553	$5,116	$2,695	$2,097	$6,083	$48,490
Criticized	—	372	—	—	—	298	670
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$18,946	$13,925	$5,116	$2,695	$2,097	$6,381	$49,160

1-4 family residential construction loans
Pass	$25,458	$4,118	$2,353	$—	$—	$7,587	$39,516
Criticized	—	—	—	—	—	—	—
Total residential real estate 1-4 family residential construction loans	$25,458	$4,118	$2,353	$—	$—	$7,587	$39,516

Other construction, land development and raw land loans
Pass	$63,430	$60,693	$51,809	$25,836	$1,236	$7,942	$210,946
Criticized	—	—	—	—	—	1,615	1,615
Total other construction, land development and raw land loans	$63,430	$60,693	$51,809	$25,836	$1,236	$9,557	$212,561

Obligations of states and political subdivisions in the US
Pass	$—	$—	$29,471	$—	$—	$—	$29,471
Criticized	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$—	$29,471	$—	$—	$—	$29,471

Agricultural production, including commercial fishing
Pass	$8,097	$8,776	$8,380	$15,847	$3,109	$1,631	$45,840
Criticized	—	—	—	—	—	—	—
Total agricultural production, including commercial fishing	$8,097	$8,776	$8,380	$15,847	$3,109	$1,631	$45,840

Consumer loans
Pass	$3,346	$2,377	$717	$75	$252	$820	$7,587


Criticized	—	45	5	—	—	1	51
Total consumer loans	$3,346	$2,422	$722	$75	$252	$821	$7,638

Other loans
Pass	$—	$345	$122	$285	$1,683	$—	$2,435
Criticized	—	—	—	—	—	—	—
Total other loans	$—	$345	$122	$285	$1,683	$—	$2,435

Total loans
Pass	$518,510	$388,836	$441,442	$222,887	$163,440	$321,665	$2,056,780
Criticized	201	4,008	18,551	15,003	6,107	28,613	72,483
Total loans	$518,711	$392,844	$459,993	$237,890	$169,547	$350,278	$2,129,263

Total pass loans	$518,510	$388,836	$441,442	$222,887	$163,440	$321,665	$2,056,780
Government guarantees	(35,244)	(12,421)	(7,727)	(13,785)	(1,591)	(17,276)	(88,044)
Total pass loans, net of government guarantees	$483,266	$376,415	$433,715	$209,102	$161,849	$304,389	$1,968,736

Total criticized loans	$201	$4,008	$18,551	$15,003	$6,107	$28,613	$72,483
Government guarantees	—	(1,640)	(14,816)	(13,476)	(5,183)	(7,963)	(43,078)
Total criticized loans, net government guarantees	$201	$2,368	$3,735	$1,527	$924	$20,650	$29,405

Past Due Loans: The following tables present an aging of contractually past due loans as of the periods presented:


(In Thousands)	30-59 Days Past Due	60-89 Days Past Due	Greater Than 90 Days Past Due	Total Past Due	Current	Total	Greater Than 90 Days Past Due Still Accruing
September 30, 2025
Commercial & industrial loans	$—	$—	$1,661	$1,661	$473,188	$474,849	$1,375
Commercial real estate:
Owner occupied properties	—	—	—	—	437,995	437,995	—
Non-owner occupied and multifamily properties	—	—	—	—	713,315	713,315	—
Residential real estate:
1-4 family residential properties secured by first liens	—	475	197	672	215,926	216,598	313
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	103	69	372	544	65,735	66,279	—
1-4 family residential construction loans	—	—	—	—	37,238	37,238	—
Other construction, land development and raw land loans	—	—	1,413	1,413	181,668	183,081	—
Obligations of states and political subdivisions in the US	—	—	—	—	32,341	32,341	—
Agricultural production, including commercial fishing	—	—	—	—	47,125	47,125	—
Consumer loans	—	—	10	10	8,325	8,335	—
Other loans	—	—	—	—	1,814	1,814	—
Total	$103	$544	$3,653	$4,300	$2,214,670	$2,218,970	$1,688
December 31, 2024
Commercial & industrial loans	$718	$—	$1,558	$2,276	$435,646	$437,922	$—
Commercial real estate:
Owner occupied properties	—	492	224	716	417,376	418,092	—
Non-owner occupied and multifamily properties	—	—	—	—	615,662	615,662	—
Residential real estate:
1-4 family residential properties secured by first liens	712	323	205	1,240	269,726	270,966	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	—	466	466	48,694	49,160	17
1-4 family residential construction loans	—	—	94	94	39,422	39,516	—
Other construction, land development and raw land loans	—	—	1,432	1,432	211,129	212,561	—
Obligations of states and political subdivisions in the US	—	—	—	—	29,471	29,471	—
Agricultural production, including commercial fishing	—	—	—	—	45,840	45,840	—
Consumer loans	—	—	—	—	7,638	7,638	—
Other loans	—	—	—	—	2,435	2,435	—
Total	$1,430	$815	$3,979	$6,224	$2,123,039	$2,129,263	$17

Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $9.6 million and $7.5 million at September 30, 2025 and December 31, 2024, respectively. The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.


	September 30, 2025		December 31, 2024
(In Thousands)	Nonaccrual	Nonaccrual With No ACL	Nonaccrual	Nonaccrual With No ACL

Commercial & industrial loans	$7,716	$7,116	$4,983	$4,760
Commercial real estate:
Owner occupied properties	—	—	224	224

Residential real estate:
1-4 family residential properties secured by first liens	197	—	233	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	417	372	550	466
1-4 family residential construction loans	—	—	94	94
Other construction, land development and raw land loans	1,413	1,413	1,432	1,432


Consumer loans	10	—	—	—

Total nonaccrual loans	9,753	8,901	7,516	6,976
Government guarantees on nonaccrual loans	(189)	(69)	—	—
Net nonaccrual loans	$9,564	$8,832	$7,516	$6,976

There was no interest on nonaccrual loans reversed through interest income during the three or nine-month periods ending September 30, 2025 or September 30, 2024.

There was no interest earned on nonaccrual loans with a principal balance during the nine-month periods ending September 30, 2025 and September 30, 2024. However, the Company recognized interest income of $143,000 and $11,000 in the three-month periods ending September 30, 2025 and 2024, respectively, and $230,000 and $246,000 in the nine-month periods ending September 30, 2025 and 2024, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

Loan Modifications: The Company modifies loans to borrowers experiencing financial difficulty as a normal part of our business. These modifications include providing term extensions/modifications, payment modifications, interest rate modifications, or, on rare occasions, principal forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. The Company may provide multiple types of concessions on any one loan.

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:

Three Months Ended September 30, 2025

Payment Modification

Term and payment modifications

Total Modifications

Percentage of Class of Financing Receivable

(In Thousands)

Commercial real estate:

Owner occupied properties

$—

—

Total

$—

—


	Three Months Ended September 30, 2024
	Payment Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$—	$195	$195	0.05	%



Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	372	—	372	0.82	%






Total	$372	$195	$567	0.03	%


	Nine Months Ended September 30, 2025
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	$3,252	$3,252	0.74	%










Total	$—	$3,252	$3,252	0.15	%


	Nine Months Ended September 30, 2024
	Term Modification	Payment Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$4,033	$—	$448	$4,481	1.08	%



Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	372	—	372	0.82	%






Total	$4,033	$372	$448	$4,853	0.24	%

The Company has no outstanding unfunded commitments to the borrowers included in the previous table.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:


	Three Months Ended September 30, 2025
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	—	%	0


	Three Months Ended September 30, 2024
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	—	%	73


	Nine Months Ended September 30, 2025
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	—	%	33


	Nine Months Ended September 30, 2024
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	8	%	10

The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty as of the dates indicated. These are loans that have been modified within twelve months of the dates indicated:


(In Thousands)	September 30, 2025	December 31, 2024
Commercial & industrial loans	$150	$5,075
Commercial real estate:
Owner occupied properties	3,230	224

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	372	466
1-4 family residential construction loans	—	94
Other construction, land development and raw land loans	1,413	1,432




Total	$5,165	$7,291

The following table presents the amortized cost basis of loans that had a payment default during the periods indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

Term and payment modification

(In Thousands)

Commercial real estate:

Owner occupied properties

$3,230

Total

$3,230


	Three Months Ended September 30, 2024	Nine Months Ended September 30, 2024
	Term modification		Term modification
(In Thousands)




Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$—		$100
1-4 family residential construction loans	—		99
Other construction, land development and raw land loans	—		778




Total	$—		$977

The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:


	September 30, 2025
	Greater Than 89 Days Past Due	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$—	$—	$150	$150
Commercial real estate:
Owner occupied properties	—	—	3,230	3,230

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	372	372	—	372

Other construction, land development and raw land loans	1,413	1,413	—	1,413




Total	$1,785	$1,785	$3,380	$5,165


	September 30, 2024
	60-89 Days Past Due		Greater Than 89 Days Past Due	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$	—	$—	$—	$4,482	$4,482
Commercial real estate:
Owner occupied properties	—		231	231	—	231

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	100		—	100	372	472
1-4 family residential construction loans	—		99	99	—	99
Other construction, land development and raw land loans	345		1,128	1,473	—	1,473




Total	$445		$1,458	$1,903	$4,854	$6,757

Upon the Company's determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.