ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

NOTE 7 ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

In determining the amount of our allowance for credit losses, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision.

The following table presents a disaggregated analysis of activity in the allowance for credit losses for loans as of June 30, 2024 and December 31, 2023:

		Real estate secured
(Dollars are in thousands)		Commercial		Construction and Land Development		Residential 1-4 family		Multifamily		Farmland		Commercial		Agriculture		Consumer and All Other		Unallocated		Total
Six months ended June 30, 2024
Beginning balance	$	2,518	$	300	$	2,666	$	509	$	163	$	673	$	33	$	394	$	-	$	7,256
Charge-offs		(1)		-		(24)		-		-		(147)		-		(130)		-		(302)
Recoveries		26		26		18		-		199		1		-		77		-		347
Provision for credit losses		302		(58)		126		(3)		(202)		87		1		173		-		426
Ending balance	$	2,845	$	268	$	2,786	$	506	$	160	$	614	$	34	$	514	$	-	$	7,727
Three months ended June 30, 2024
Beginning balance	$	2,500	$	295	$	2,749	$	489	$	162	$	723	$	36	$	452	$	-	$	7,406
Charge-offs		(1)		-		(24)		-		-		(147)		-		(60)		-		(232)
Recoveries		-		11		9		-		82		1		-		28		-		131
Provision for credit losses		346		(38)		52		17		(84)		37		(2)		94		-		422
Ending balance	$	2,845	$	268	$	2,786	$	506	$	160	$	614	$	34	$	514	$	-	$	7,727
		Real estate secured
(Dollars are in thousands)		Commercial		Construction and Land Development		Residential 1-4 family		Multifamily		Farmland		Commercial		Agriculture		Consumer and All Other		Unallocated		Total
Year ended December 31, 2023
Beginning balance	$	2,364	$	345	$	2,364	$	262	$	153	$	381	$	32	$	c           386	$	440	$	6,727
Adjustment to allowance for adoption of ASU 2016-13		(299)		164		275		12		75		241		(5)		(103)		(440)
Charge-offs		-		-		(51)		-		-		(45)		(59)		(321)		-		(476)
Recoveries		-		35		37		111		-		19		5		166		-		373
Provision for credit losses		453		(244)		41		124		(65)		77		60		266		-		712
Ending balance	$	2,518	$	300	$	2,666	$	509	$	163	$	673	$	33	$	394	$	-	$	7,256

Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.