ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

12 Months Ended

Dec. 31, 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 credit losses and we may experience significant increases to our provision.

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset 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. Among other techniques, the Company uses a discounted cash flow methodology to determine the allowance for credit losses.

The following tables present a disaggregated analysis of activity in the allowance for credit losses for loans as of December 31, 2024 and 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
Year ended December 30, 2024
Beginning balance	$	2,518		$	300	$	2,666		$	509		$	163		$	673		$	33	$	394		$	—	$	7,256
Charge-offs		(180	)		—		(75	)		(95	)		—			(162	)		—		(279	)		—		(791	)
Recoveries		106			44		100			—			297			9			—		157			—		713
Provision for credit losses		2,639			278		2,898			477			(148	)		904			36		678			—		7,762
Ending balance	$	2,565		$	322	$	2,923		$	382		$	149		$	751		$	36	$	556		$	—	$	7,684

		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		$	386		$	440		$	6,727
Adjustment to allowance for adoption of ASU 2016-13		(299	)		164			275			12		75			241			(5	)		(103	)		(440	)		(80	)
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.