LOANS

3 Months Ended

Mar. 31, 2025

Receivables [Abstract]

LOANS

NOTE 6 LOANS

Loans receivable outstanding as of March 31, 2025, and December 31, 2024, are summarized as follows:

(Dollars in thousands)	March 31, 2025		December 31, 2024
Real estate secured:
Commercial	$	249,143	$	243,646
Construction and land development		35,875		36,112
Residential 1-4 family		237,664		234,860
Multifamily		32,157		32,379
Farmland		17,927		16,921
Total real estate loans		572,766		563,918
Commercial		62,021		60,587
Agriculture		5,004		4,025
Consumer installment and all other loans		30,940		29,006
Total loans	$	670,731	$	657,536

Also included in total loans above are deferred loan fees of $2.1 million and $2.0 million as of March 31, 2025 and December 31, 2024, respectively. Deferred loan costs were $1.9 million and $1.9 million, as of March 31, 2025 and

December 31, 2024, 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 costs is recognized at that time.

Loans receivable on nonaccrual status as of March 31, 2025, and December 31, 2024, are summarized as follows:

			March 31, 2025						December 31, 2024
			With No Allowance		With an Allowance		Total		With No Allowance		With an Allowance		Total
(Dollars in thousands)
Real estate secured:
	Commercial	$	405	$	-	$	405	$	411	$	-	$	411
	Construction and land development		329		-		329		300		-		300
	Residential 1-4 family		2,689		178		2,867		2,232		178		2,410
Total real estate loans			3,423		178		3,601		2,943		178		3,121
Commercial			59		-		59		66		-		66
Agriculture			-		802		802		-		-		-
Consumer installment loans and other loans			45		-		45		56		14		70
Total loans receivable on nonaccrual status		$	3,527	$	980	$	4,507	$	3,081	$	192	$	3,273

Total interest income not recognized on nonaccrual loans for the three months ended March 31, 2025, and March 31, 2024, was $38,000 and $26,000, respectively.

The Company evaluates loans that do not share risk characteristics on an individual basis utilizing the collateral or discounted cash flow methods. The following table presents the unpaid principal balance of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to those loans as March 31, 2025 and December 31, 2024:

			March 31, 2025				December 31, 2024
			Unpaid Principal Balance		Related Allowance		Unpaid Principal Balance		Related Allowance
(Dollars in thousands)
Real estate secured:
	Commercial	$	396	$	-	$	396	$	-
	Construction and land development		300		-		300		-
	Residential 1-4 family		1,388		178		1,008		177
Total real estate loans			2,084		178		1,704		177
Agriculture			802		78		-		-
Consumer installment loans and other loans			-		-		13		3
Total		$	2,886	$	256	$	1,717	$	180

The following table is an age analysis of past due loans receivable as of March 31, 2025, segregated by class:

March 31, 2025 (Dollars 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	$	326	$	—	$	396	$	722	$	248,421	$	249,143
Construction and land development		—		—		300		300		35,575		35,875
Residential 1-4 family		1,692		633		477		2,802		234,862		237,664
Multifamily		—		—		—		—		32,157		32,157
Farmland		205		—		—		205		17,722		17,927
Total real estate loans		2,223		633		1,173		4,029		568,737		572,766
Commercial		—		26		13		39		61,982		62,021
Agriculture		815		—		—		815		4,189		5,004
Consumer installment and all other loans		113		7		2		122		30,818		30,940
Total loans	$	3,151	$	666	$	1,188	$	5,005	$	665,726	$	670,731

The following table is an age analysis of past due loans receivable as of December 31, 2024, segregated by class:

December 31, 2024 (Dollars 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 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

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 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 relevant information analyzed 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 as 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.

The following table presents the credit risk grade of loans by origination year as of March 31, 2025:

As of March 31, 2025
(Dollars are in thousands)	2024			2023			2022			2021			2020			Prior			Revolving			Total
Commercial real estate
Pass	$	8,844		$	19,769		$	46,919		$	47,054		$	45,056		$	80,724		$	370		$	248,736
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			255			142			10			—			407
Total commercial real estate	$	8,844		$	19,769		$	46,919		$	47,309		$	45,198		$	80,734		$	370		$	249,143
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Construction and Land Development
Pass	$	1,978		$	20,627		$	4,979		$	2,183		$	2,176		$	3,602		$	—		$	35,545
Special mention		—			—			—			—			—			—			—			—
Substandard		—			330			—			—			—			—			—			330
Total construction and land development	$	1,978		$	20,957		$	4,979		$	2,183		$	2,176		$	3,602		$	—		$	35,875
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Residential 1-4 family
Pass	$	8,658		$	20,312		$	24,553		$	28,797		$	38,591		$	84,010		$	28,852		$	233,773
Special mention		—			—			—			—			—			292			—			292
Substandard		—			104			255			40			786			2,270			144			3,599
Total residential 1-4 family	$	8,658		$	20,416		$	24,808		$	28,837		$	39,377		$	86,572		$	28,996		$	237,664
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Multifamily
Pass	$	552		$	1,500		$	4,635		$	10,208		$	6,759		$	8,503		$	—		$	32,157
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—
Total multifamily	$	552		$	1,500		$	4,635		$	10,208		$	6,759		$	8,503		$	—		$	32,157
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Farmland
Pass	$	1,496		$	2,666		$	1,331		$	1,983		$	2,773		$	7,538		$	—		$	17,787
Special mention		—			—			—			—			—			140			—			140
Substandard		—			—			—			—			—			—			—			—
Total farmland	$	1,496		$	2,666		$	1,331		$	1,983		$	2,773		$	7,678		$	—		$	17,927
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Commercial
Pass	$	8,021		$	15,816		$	12,275		$	3,980		$	2,029		$	3,312		$	16,527		$	61,960
Special mention		—			—			—			—			—			2			—			2
Substandard		—			—			—			—			26			—			33			59
Total commercial	$	8,021		$	15,816		$	12,275		$	3,980		$	2,055		$	3,314		$	16,560		$	62,021
Current period gross charge-offs	$	—		$	(8	)	$	—		$	—		$	—		$	—		$	(10	)	$	(18	)
Agriculture
Pass	$	356		$	863		$	290		$	299		$	165		$	170		$	2,044		$	4,187
Special mention		—			—			—			—			—			—			—			—
Substandard		—			305			—			—			—			16			496			817
Total agriculture	$	356		$	1,168		$	290		$	299		$	165		$	186		$	2,540		$	5,004
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer and All Other
Pass	$	5,526		$	12,546		$	6,301		$	2,368		$	1,185		$	1,868		$	1,108		$	30,902
Special mention		—			—			—			—			—			—			—			—
Substandard		—			3			14			10			9			2			—			38
Total consumer and all other	$	5,526		$	12,549		$	6,315		$	2,378		$	1,194		$	1,870		$	1,108		$	30,940
Current period gross charge-offs	$	(35	)	$	(8	)	$	(7	)	$	(5	)	$	(1	)	$	(4	)	$	—		$	(60	)
Total	$	35,431		$	94,841		$	101,552		$	97,177		$	99,697		$	192,459		$	49,574		$	670,731
Total current period gross charge-offs	$	(35	)	$	(16	)	$	(7	)	$	(5	)	$	(1	)	$	(4	)	$	(10	)	$	(78	)

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

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	)