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LOANS
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
LOANS

NOTE 6 LOANS

 

Loans receivable outstanding as of December 31, 2024 and 2023 are summarized as follows:

 

          
   December 31,
(Dollars are in thousands)  2024  2023
Real estate secured:          
Commercial  $243,646   $240,187 
Construction and land development   36,112    28,830 
Residential 1-4 family   234,860    238,233 
Multifamily   32,379    34,571 
Farmland   16,921    16,401 
Total real estate loans   563,918    558,222 
Commercial   60,587    53,230 
Agriculture   4,025    3,508 
Consumer installment loans and all other loans   29,006    23,151 
Total loans  $657,536   $638,111 

 

Also included in total loans above are deferred loan fees of $2.0 million and $1.8 million, as of December 31, 2024 and 2023, respectively. Total deferred loan costs were $1.9 million and $2.0 million, as of December 31, 2024 and 2023, respectively. Income from net deferred fees and costs is recognized over the lives of the respective loans as a yield adjustment. If loans repay prior to scheduled maturities any unamortized fee or cost is recognized at that time.

 

Loans receivable on nonaccrual status as of December 31, 2024 and 2023 are summarized as follows:

 

                       
        December 31, 2024   December 31, 2023
        With No Allowance   With an Allowance   Total   With No Allowance   With an Allowance   Total
(Dollars in thousands)                        
Real estate secured:                        
  Commercial $               411 $                 -    $             411 $               544 $               268 $             812
  Construction and land development               300                   -                  300                   -                      -                     -   
  Residential 1-4 family              2,232                 178            2,410              2,495                   -               2,495
  Multifamily                   -                      -                     -                    199                   -                  199
    Total real estate loans              2,943                 178            3,121              3,238                 268            3,506
Commercial                   66                   -                    66                   -                      -                     -   
Agriculture                   16                   -                    16                   -                      -                     -   
Consumer installment loans and other loans                   56                   14                 70                   28                   -                    28
                             
Total loans receivable on nonaccrual status $            3,081 $               192 $          3,273 $            3,266 $               268 $          3,534

 

Total interest income not recognized on nonaccrual loans for 2024 and 2023 was approximately $49,000 and $61,000, respectively.

 

The Company evaluates loans that do not share risk characteristics on an individual basis utilizing the collateral or discounted cash flow methods as described in Note 2 Summary of Significant Accounting Policies. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to those loans as December 31, 2024 and 2023:

 

             
      December 31, 2024   December 31, 2023
      Unpaid Principal Balance   Related Allowance   Unpaid Principal Balance   Related Allowance
(Dollars in thousands)                
Real estate secured:                
Commercial $          396 $            -    $         812 $            64
Construction and land development          300   -   -   -
Residential 1-4 family      1,008   177   312         -   
Total real estate loans       1,704        177       1,124              64
Consumer installment loans and other loans            13                3           -               -   
                   
Total $ 1,717 $     180 $     1,124 $            64
                   

The following tables show an age analysis of past due loans receivable as of December 31, 2024 and 2023, segregated by class:

                              

 

 

 

 

As of December 31, 2024

(Dollars are in thousands)

  Loans
30-59
Days
Past
Due		  Loans
60-89
Days
Past
Due		  Loans
90 or
More
Days
Past
Due		  Total
Past
Due
Loans		  Current
Loans		  Total
Loans
Real estate secured:                              
Commercial  $—     $255   $156   $411   $243,235   $243,646 
Construction and land
Development		   3    333    —      336    35,776    36,112 
Residential 1-4 family   2,413    1,810    510    4,733    230,127    234,860 
Multifamily   —      —      —      —      32,379    32,379 
Farmland   207    —      —      207    16,714    16,921 
Total real estate loans   2,623    2,398    666    5,687    558,231    563,918 
Commercial   166    77    —      243    60,344    60,587 
Agriculture   37    —      —      37    3,988    4,025 
Consumer installment
loans and all other loans		   89    88    30    207    28,799    29,006 
Total loans  $2,915   $2,563   $696   $6,174   $651,362   $657,536 

 

 

 

 

 

As of December 31, 2023

(Dollars are in thousands)

  Loans
30-59
Days
Past
Due		  Loans
60-89
Days
Past
Due		  Loans
90 or
More
Days
Past
Due		  Total
Past
Due
Loans		  Current
Loans		  Total
Loans
Real estate secured:                              
Commercial  $878   $—     $268   $1,146   $239,041   $240,187 
Construction and land
development		   85    4    —      89    28,741    28,830 
Residential 1-4 family   2,628    1,119    886    4,633    233,600    238,233 
Multifamily   —      —      199    199    34,372    34,571 
Farmland   —      —      —      —      16,401    16,401 
Total real estate loans   3,591    1,123    1,353    6,067    552,155    558,222 
Commercial   —      20    —      20    53,210    53,230 
Agriculture   8    —      —      8    3,500    3,508 
Consumer installment
loans and all other loans		   140    11    1    152    22,999    23,151 
Total loans  $3,739   $1,154   $1,354   $6,247   $631,864   $638,111 

 

As of December 31, 2024 and 2023, there were no loans over 90 days past due that were accruing.

The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings:

 

Pass - Loans in this category are considered to have a low likelihood of loss based on analysis of relevant information about the ability of the borrowers to service their debt and other factors.

 

Special Mention - Loans in this category are currently protected but are potentially weak, including adverse trends in borrower’s operations, credit quality or financial strength. Those loans constitute an undue and unwarranted credit risk but not to the point of justifying a substandard classification. The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances.  Special mention loans have potential weaknesses which may, if not checked or corrected, weaken the loan or inadequately protect the Company’s credit 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 of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution 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. There were no loans classified as doubtful at either December 31, 2024 or 2023.

 

The following table presents the credit risk grade of loans by origination year as of December 31, 2024 and 2023:

 

                               
 As of December 31, 2024                                 
 (Dollars are in thousands)    2024   2023   2022   2021   2020   Prior   Revolving   Total
 Commercial real estate                                 
 Pass   $          20,653  $           47,052  $          43,553  $          46,902  $          27,155  $          56,369  $            1,541  $        243,225
 Special mention                   -                       -                     -                     -                     -                       9                  -                       9
 Substandard                   -                       -                   255                141                  -                     16                  -                   412
 Total commercial real estate   $          20,653  $           47,052  $          43,808  $          47,043  $          27,155  $          56,394  $            1,541  $        243,646
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $             (179)  $                 -     $                 -     $                 (1)  $             (180)
                                 
 Construction and Land Development                                 
 Pass   $          17,654  $             5,078  $            6,240  $            3,019  $            1,719  $            2,089  $                 -     $          35,799
 Special mention                   -                       -                     -                     -                     -                     12                  -                     12
 Substandard                 301                    -                     -                     -                     -                     -                     -                   301
 Total construction and land development   $          17,955  $             5,078  $            6,240  $            3,019  $            1,719  $            2,101  $                 -     $          36,112
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $                 -     $                 -     $                 -   
                                 
 Residential 1-4 family                                 
 Pass   $          19,094  $           27,861  $          29,510  $          38,329  $          11,265  $          78,424  $          26,933  $        231,416
 Special mention                   -                       -                     -                     -                     -                   319                  -                   319
 Substandard                 104                 257                  42                723                238             1,647                114             3,125
 Total residential 1-4 family   $          19,198  $           28,118  $          29,552  $          39,052  $          11,503  $          80,390  $          27,047  $        234,860
                                 
 Current period gross charge-offs   $                 -     $                (38)  $                 -     $                 -     $                 -     $               (37)  $                 -     $               (75)
                                 
 Multifamily                                 
 Pass   $            1,564  $             4,829  $          10,313  $            6,818  $            2,505  $            6,350  $                 -     $          32,379
 Special mention                   -                       -                     -                     -                     -                     -                     -                     -   
 Substandard                   -                       -                     -                     -                     -                     -                     -                     -   
 Total multifamily   $            1,564  $             4,829  $          10,313  $            6,818  $            2,505  $            6,350  $                 -     $          32,379
                                 
 Current period gross charge-offs   $                 -     $                (53)  $                 -     $                 -     $                 -     $               (42)  $                 -     $               (95)
                                 
 Farmland                                 
 Pass   $            2,669  $             1,333  $            2,045  $            2,812  $               730  $            7,186  $                 -     $          16,775
 Special mention                   -                       -                     -                     -                     -                   146                  -                   146
 Substandard                   -                       -                     -                     -                     -                     -                     -                     -   
 Total farmland   $            2,669  $             1,333  $            2,045  $            2,812  $               730  $            7,332  $                 -     $          16,921
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $                 -     $                 -     $                 -   
                                 
 Commercial                                 
 Pass   $          18,298  $           13,490  $            4,780  $            2,305  $               801  $            2,560  $          18,284  $          60,518
 Special mention                   -                       -                     -                     -                     -                       2                  -                       2
 Substandard                     1                    -                     -                     31                  -                     -                     35                  67
 Total commercial   $          18,299  $           13,490  $            4,780  $            2,336  $               801  $            2,562  $          18,319  $          60,587
                                 
 Current period gross charge-offs   $                 -     $                (34)  $               (55)  $                 -     $                 -     $                 -     $               (73)  $             (162)
                                 
 Agriculture                                 
 Pass   $            1,333  $                322  $               339  $               232  $                 35  $               195  $            1,553  $            4,009
 Special mention                   -                       -                     -                     -                     -                     -                     -                     -   
 Substandard                   -                       -                     -                     -                     -                     16                  -                     16
 Total agriculture   $            1,333  $                322  $               339  $               232  $                 35  $               211  $            1,553  $            4,025
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $                 -     $                 -     $                 -   
                                 
 Consumer and All Other                                 
 Pass   $      14,500  $         7,982  $        2,706  $        1,276  $           424  $           880  $            1,158  $          28,926
 Special mention               -                   -                 -                 -                 -                 -                     -                     -   
 Substandard               17               22              20              19                2              -                     -                     80
 Total consumer and all other   $          14,517  $             8,004  $            2,726  $            1,295  $               426  $               880  $            1,158  $          29,006
                                 
 Current period gross charge-offs   $         (163)  $            (62)  $           (14)  $             (7)  $             (9)  $             -     $           (24)  $             (279)
                                 
 Total   $          96,188  $         108,226  $          99,803  $        102,607  $          44,874  $        156,220  $          49,618  $        657,536
 Total current period gross charge-offs   $             (163)  $              (187)  $               (69)  $             (186)  $                 (9)  $               (79)  $               (98)  $             (791)

 

 

 As of December 31, 2023                                 
 (Dollars are in thousands)    2023   2022   2021   2020   2019   Prior   Revolving   Total
 Commercial real estate                                 
 Pass   $          46,616  $           49,061  $          48,943  $          28,651  $          20,004  $          43,524  $               997  $        237,796
 Special mention                   -                       -                1,171                314                  -                     92                  -                1,577
 Substandard                   -                       -                     -                     -                   429                385                  -                   814
 Total commercial real estate   $          46,616  $           49,061  $          50,114  $          28,965  $          20,433  $          44,001  $               997  $        240,187
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $                 -     $                 -     $                 -   
                                 
 Construction and Land Development                                 
 Pass   $          12,043  $             5,990  $            4,738  $            2,521  $            1,799  $            1,637  $                 -     $          28,728
 Special mention                   -                       -                     -                     -                     -                   102                  -                   102
 Substandard                   -                       -                     -                     -                     -                     -                     -                     -   
 Total construction and land development   $          12,043  $             5,990  $            4,738  $            2,521  $            1,799  $            1,739  $                 -     $          28,830
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $                 -     $                 -     $                 -   
                                 
 Residential 1-4 family                                 
 Pass   $          29,006  $           33,986  $          41,214  $          13,566  $          13,662  $          80,087  $          23,553  $        235,074
 Special mention                   -                       -                     -                     -                     -                   259                  -                   259
 Substandard                   87                    -                     49                  -                     38             2,662                  64             2,900
 Total residential 1-4 family   $          29,093  $           33,986  $          41,263  $          13,566  $          13,700  $          83,008  $          23,617  $        238,233
                                 
 Current period gross charge-offs   $                 -     $                   -     $               (30)  $                 -     $                 -     $               (21)  $                 -     $               (51)
                                 
 Multifamily                                 
 Pass   $            5,779  $           11,483  $            7,965  $            2,626  $            1,081  $            5,438  $                 -     $          34,372
 Special mention                   -                       -                     -                     -                     -                     -                     -                     -   
 Substandard                   -                       -                     -                     -                     -                   199                  -                   199
 Total multifamily   $            5,779  $           11,483  $            7,965  $            2,626  $            1,081  $            5,637  $                 -     $          34,571
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $                 -     $                 -     $                 -   
                                 
 Farmland                                 
 Pass   $            1,807  $             2,222  $            3,414  $               776  $            1,205  $            6,793  $                 -     $          16,217
 Special mention                   -                       -                     -                     -                     -                   184                  -                   184
 Substandard                   -                       -                     -                     -                     -                     -                     -                     -   
 Total farmland   $            1,807  $             2,222  $            3,414  $               776  $            1,205  $            6,977  $                 -     $          16,401
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $                 -     $                 -     $                 -   
                                 
 Commercial                                 
 Pass   $          19,306  $           10,228  $            5,638  $            1,591  $            2,167  $            1,342  $          12,777  $          53,049
 Special mention                   78                 100                  -                     -                     -                       3                  -                   181
 Substandard                   -                       -                     -                     -                     -                     -                     -                     -   
 Total commercial   $          19,384  $           10,328  $            5,638  $            1,591  $            2,167  $            1,345  $          12,777  $          53,230
                                 
 Current period gross charge-offs   $                 -     $                  (5)  $               (14)  $                 -     $               (26)  $                 -     $                 -     $               (45)
                                 
 Agriculture                                 
 Pass   $               565  $                518  $               347  $               127  $                 67  $               649  $            1,217  $            3,490
 Special mention                   -                       -                     -                     -                     -                     -                     -                     -   
 Substandard                   -                       -                     -                     -                     -                     18                  -                     18
 Total agriculture   $               565  $                518  $               347  $               127  $                 67  $               667  $            1,217  $            3,508
                                 
 Current period gross charge-offs   $                 -     $                   -     $                 -     $                 -     $                 -     $               (59)  $                 -     $               (59)
                                 
 Consumer and All Other                                 
 Pass   $      12,352  $         4,822  $        2,408  $           864  $           594  $           761  $            1,339  $          23,140
 Special mention               -                    1              -                 -                 -                 -                     -                       1
 Substandard                 4                -                   1                3                1                1                  -                     10
 Total consumer and all other   $          12,356  $             4,823  $            2,409  $               867  $               595  $               762  $            1,339  $          23,151
                                 
 Current period gross charge-offs   $         (198)  $            (49)  $           (13)  $             -     $             -     $             (2)  $           (59)  $             (321)
                                 
 Total   $        127,643  $         118,411  $        115,888  $          51,039  $          41,047  $        144,136  $          39,947  $        638,111
 Total current period gross charge-offs   $             (198)  $                (54)  $               (57)  $                 -     $               (26)  $               (82)  $               (59)  $             (476)