ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

3 Months Ended

Mar. 31, 2025

Allowance For Credit Losses For Loans

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 March 31, 2025 and December 31, 2024:

		Real estate secured
(Dollars are in thousands)		Commercial		Construction and Land Development			Residential 1-4 family			Multifamily			Farmland		Commercial			Agriculture		Consumer and All Other			Total
Three months ended March 31, 2025
Beginning balance	$	2,565	$	322		$	2,923		$	382		$	149	$	751		$	36	$	556		$	7,684
Charge-offs		—		—			—			—			—		(18	)		—		(60	)		(78	)
Recoveries	$	—	$	15		$	10		$	3			3		1			—		27			59
Provision for credit losses		27		(21	)		(24	)		(13	)		3		37			78		80			167
Ending balance	$	2,592	$	316		$	2,909		$	372		$	155	$	771		$	114	$	603		$	7,832

		Real estate secured
(Dollars are in thousands)		Commercial			Construction and Land Development		Residential 1-4 family			Multifamily			Farmland			Commercial			Agriculture			Consumer and All Other			Total
Year ended December 30, 2024
Beginning balance	$	—		$	104	$	255		$	40		$	786		$	2,270		$	144		$	3,599		$	7,198
Charge-offs		(180	)		—		(75	)		(95	)		—			(162	)		—			(279	)		(791	)
Recoveries		106			44		100			—			297			9			—			157			713
Provision for credit losses		2,639			174		2,643			437			(934	)		(1,366	)		(108	)		(2,921	)		564
Ending balance	$	2,565		$	322	$	2,923		$	382		$	149		$	751		$	36		$	556		$	7,684

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