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LOANS HELD FOR INVESTMENT
 3 Months Ended
Mar. 31, 2025
LOANS HELD FOR INVESTMENT [Abstract]  
LOANS HELD FOR INVESTMENT
3.  LOANS HELD FOR INVESTMENT

Loans held for investment are summarized by category as of the dates presented below (dollars in thousands):

 
March 31,
2025
    
December 31,
2024
  
Commercial real estate
  
$
1,126,800
    
$
1,119,063
  
Commercial - specialized
    
366,796
      
388,955
  
Commercial - general
    
584,705
      
557,371
  
Consumer:
                
1-4 family residential
    
569,799
      
566,400
  
Auto loans
    
261,629
      
254,474
  
Other consumer
    
64,090
      
64,936
  
Construction
    
102,041
      
103,855
  
     
3,075,860
      
3,055,054
  
Allowance for credit losses on loans
    
(42,968
)
    
(43,237
)
Loans, net
  
$
3,032,892
    
$
3,011,817
  

The Company has certain lending policies, underwriting standards, and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies, underwriting standards, and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing, and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography.

Commercial Real Estate – Underwriting standards have been designed to determine whether the borrower possesses sound business ethics and practices, evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed and ensure appropriate collateral is obtained to secure the loan. Commercial real estate loans are underwritten primarily based on projected cash flows for income-producing properties and collateral values for non-income-producing properties. The repayment of these loans is generally dependent on the successful operation of the property securing the loans or the sale or refinancing of the property. Real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are diversified by type and geographic location. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry.

Commercial – General and Specialized – Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably. Underwriting standards have been designed to determine whether the borrower possesses sound business ethics and practices, evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations, as agreed and ensure appropriate collateral is obtained to secure the loan. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as real estate, accounts receivable, or inventory, and typically include personal guarantees. Owner-occupied real estate is included in commercial loans, as the repayment of these loans is generally dependent on the operations of the commercial borrower’s business rather than on income-producing properties or the sale of the properties. Commercial loans are grouped into two distinct sub-categories: specialized and general. Commercial related segments that are considered “specialized” include agricultural production and real estate loans, energy loans, and finance, investment, and insurance loans. Commercial related segments that contain a broader diversity of borrowers, sub-industries, or serviced industries are grouped into the “general category.” These include goods, services, restaurant & retail, construction, and other industries. Performance of these loans is subject to operating and cash flow results of the borrower, with risk in the volatility of operating results for particular industries.
Consumer – Loans to consumers include 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. The Company utilizes a computer-based credit scoring analysis to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. The Company generally requires mortgage title insurance and hazard insurance on 1-4 family residential loans. All consumer loans are generally dependent on the risk characteristics of the borrower’s ability to repay the loan, a consideration of the debt to income ratio, employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral.

Construction – Loans for residential construction are for single-family properties to developers, builders, or end-users. These loans are underwritten based on estimates of costs and completed value of the project. Funds are advanced based on estimated percentage of completion for the project. Performance of these loans is affected by economic conditions as well as the ability to control costs of the projects.

The ACL for loans was $43.0 million at March 31, 2025 and $43.2 million at December 31, 2024. The ratio of ACL for loans to loans held for investment was 1.40% at March 31, 2025 and 1.42% at December 31, 2024.

The following tables detail the activity in the ACL for loans for the periods indicated (dollars in thousands). Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

   
Beginning
Balance
    
Provision for
Credit Losses(1)
    
Charge-
offs
    
Recoveries
    
Ending
Balance
  
For the three months ended March 31, 2025
                              
Commercial real estate
  
$
15,973
    
$
(186
)
  
$
—
    
$
—
    
$
15,787
  
Commercial - specialized
    
4,640
      
(151
)
    
—
      
34
      
4,523
  
Commercial - general
    
6,874
      
(417
)
    
(74
)
    
20
      
6,403
  
Consumer:
                                        
1-4 family residential
    
9,677
      
395
      
—
      
7
      
10,079
  
Auto loans
    
3,015
      
337
      
(303
)
    
47
      
3,096
  
Other consumer
    
1,115
      
247
      
(313
)
    
58
      
1,107
  
Construction
    
1,943
      
25
      
—
      
5
      
1,973
  
   
$
43,237
    
$
250
    
$
(690
)
  
$
171
    
$
42,968
  
                                         
For the three months ended March 31, 2024
                                        
Commercial real estate
  
$
15,808
    
$
62
    
$
(86
)
  
$
—
    
$
15,784
  
Commercial - specialized
    
4,020
      
(205
)
    
—
      
33
      
3,848
  
Commercial - general
    
6,391
      
659
      
(375
)
    
33
      
6,708
  
Consumer:
                                        
1-4 family residential
    
9,177
      
273
      
(172
)
    
2
      
9,280
  
Auto loans
    
3,601
      
(27
)
    
(224
)
    
65
      
3,415
  
Other consumer
    
968
      
238
      
(282
)
    
59
      
983
  
Construction
    
2,391
      
(235
)
    
—
      
—
      
2,156
  
   
$
42,356
    
$
765
    
$
(1,139
)
  
$
192
    
$
42,174

(1) For the three months ended March 31, 2025 and 2024, the provision for credit losses of $420 thousand and $830 thousand, respectively, on the Consolidated Statements of Comprehensive Income (Loss) includes a provision for credit losses on loans of $250 thousand and $765 thousand, respectively, and a provision for off-balance sheet credit exposures of $170 thousand and $65 thousand, respectively.

The decrease in the provision for credit losses during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was primarily due to a decrease in net charge-offs, partially offset by organic loan growth during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

The following tables show the Company’s amortized cost and related ACL for individually evaluated collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the dates indicated (dollars in thousands).

   
Equipment
    
Real Estate
    
Other
    
Total Loans Individually Evaluated
    
Total ACL
for Individually Evaluated Loans
  
March 31, 2025
                              
Commercial real estate
  
$
—
    
$
336
    
$
—
    
$
336
    
$
—
  
Commercial - specialized
    
—
      
—
      
—
      
—
      
—
  
Commercial - general
    
—
      
—
      
—
      
—
      
—
  
Consumer:
                                        
1-4 family residential
    
—
      
—
      
—
      
—
      
—
  
Auto loans
    
—
      
—
      
—
      
—
      
—
  
Other consumer
    
—
      
—
      
—
      
—
      
—
  
Construction
    
—
      
141
      
—
      
141
      
—
  
   
$
—
    
$
477
    
$
—
    
$
477
    
$
—
  

December 31, 2024
                              
Commercial real estate
  
$
—
    
$
19,543
    
$
—
    
$
19,543
    
$
552
  
Commercial - specialized
    
—
      
—
      
—
      
—
      
—
  
Commercial - general
    
—
      
—
      
—
      
—
      
—
  
Consumer:
                                        
1-4 family residential
    
—
      
—
      
—
      
—
      
—
  
Auto loans
    
—
      
—
      
—
      
—
      
—
  
Other consumer
    
—
      
—
      
—
      
—
      
—
  
Construction
    
—
      
1,575
      
—
      
1,575
      
—
  
   
$
—
    
$
21,118
    
$
—
    
$
21,118
    
$
552
  

The tables below provide an age analysis on accruing past-due loans and nonaccrual loans at the dates indicated (dollars in thousands):

 
  
30-89 Days
Past Due
    
90 Days or
More Past
Due
    
Nonaccrual
    
Nonaccrual
with no
ACL
  
March 31, 2025
                        
Commercial real estate
  
$
3,435
    
$
—
    
$
336
    
$
336
  
Commercial - specialized
    
2,587
      
38
      
177
      
—
  
Commercial - general
    
2,233
      
263
      
519
      
—
  
Consumer:
                                
1-4 Family residential
    
3,809
      
3,823
      
659
      
—
  
Auto loans
    
754
      
290
      
—
      
—
  
Other consumer
    
522
      
200
      
21
      
—
  
Construction
    
518
      
—
      
141
      
141
  
 
  
$
13,858
    
$
4,614
    
$
1,853
    
$
477
  

December 31, 2024
                        
Commercial real estate
  
$
594
    
$
96
    
$
19,543
     $ —  
Commercial - specialized
    
1,770
      
240
      
105
       —  
Commercial - general
    
1,374
      
244
      
180
       —  
Consumer:
                                
1-4 Family residential
    
1,966
      
1,042
      
676
       —  
Auto loans
    
1,004
      
114
      
—
       —  
Other consumer
    
1,125
      
185
      
23
       —  
Construction
    
95
      
—
      
1,575
       1,575  

 
$
7,928
    
$
1,921
    
$
22,102
     $ 1,575  
                                                                                                                                                                                                                                                                                             
Credit Quality Indicators
The Company grades its loans on a thirteen-point grading scale. These grades fit in one of the following categories: (i) pass, (ii) special mention, (iii) substandard, (iv) doubtful, or (v) loss. Loans categorized as loss are charged-off immediately. The grading of loans reflects a judgment by the Company about the risks of default associated with the loan. The Company reviews the grades on loans as part of the Company’s on-going monitoring of the credit quality of the loan portfolio. These risk ratings are assigned based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.

Pass loans have financial factors or nature of collateral that are considered reasonable credit risks in the normal course of lending and encompass several grades that are assigned based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring.

Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the loans at some future date.

Substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize collection and present the distinct possibility that some loss will be sustained if the deficiencies are not corrected. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Substandard loans can be accruing or can be nonaccrual depending on the circumstances of the individual loans.

Doubtful loans have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. All doubtful loans are on nonaccrual.

In connection with the review of the Company’s loan portfolio, management considers risk elements attributable to particular loan type or categories in assessing the quality of individual loans. The list of loans to be analyzed for individual evaluation consists of non-accrual loans over $250 thousand with direct exposure. Interest income recognized using a cash-basis method on non-accrual loans for each of the three months ended March 31, 2025 and 2024 was not significant. In addition, the Company closely monitors substandard accruing loans over $1 million with direct exposure, and past due accruing loans over $100 thousand for possible individual evaluation. All other loans will be evaluated collectively in designated pools unless a loss exposure has been identified. Additional funds committed to be advanced on individually analyzed loans are not significant.

The following tables reflect the amortized cost basis in loans held for investment by credit quality indicator and origination year at the dates indicated, and related year-to-date gross charge-offs. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at March 31, 2025 and December 31, 2024.

 
                    
Term Loans
                    
 
              
Amortized Cost Basis by Origination Year
March 31, 2025
              
(Dollars in thousands)
  
2025
    
2024
    
2023
    
2022
    
2021
    
Prior
    
Revolving Loans
    
Total
  

                                               
Commercial real estate
                                               
Pass
  
$
65,076
    
$
136,494
    
$
242,382
    
$
303,437
    
$
117,214
    
$
191,673
    
$
6,464
    
$
1,062,740
  
Special mention
    
—
      
—
      
—
      
2,881
      
32,037
      
5,850
      
483
      
41,251
  
Substandard
     —       —       —       408       22,136       265       —       22,809  
Total commercial real estate loans
  
$
65,076
    
$
136,494
    
$
242,382
    
$
306,726
    
$
171,387
    
$
197,788
    
$
6,947
    
$
1,126,800
  
Year-to-date gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
 
                                                                
Commercial - specialized
                                                                
Pass
  
$
26,372
    
$
74,222
    
$
55,013
    
$
37,006
    
$
40,812
    
$
40,376
    
$
90,327
    
$
364,128
  
Special mention
    
600
      
214
      
—
      
1,332
      
—
      
—
      
—
      
2,146
  
Substandard
     —       199       —       77       79       167       —       522  
Total commercial - specialized loans
  
$
26,972
    
$
74,635
    
$
55,013
    
$
38,415
    
$
40,891
    
$
40,543
    
$
90,327
    
$
366,796
  
Year-to-date gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
 
                                                                
Commercial - general
                                                                
Pass
  
$
45,897
    
$
109,006
    
$
64,684
    
$
103,264
    
$
55,447
    
$
103,917
    
$
84,847
    
$
567,062
  
Special mention
    
—
      
310
      
3,352
      
955
      
1,594
      
495
      
200
      
6,906
  
Substandard
     —       202       2,587       2,381       4,388       1,026       153       10,737  
Total commercial - general loans
  
$
45,897
    
$
109,518
    
$
70,623
    
$
106,600
    
$
61,429
    
$
105,438
    
$
85,200
    
$
584,705
  
Year-to-date gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
61
    
$
—
    
$
13
    
$
—
    
$
74
  

                                                               
Consumer 1-4 family residential
                                                                
Pass
  
$
19,328
    
$
82,956
    
$
95,309
    
$
150,592
    
$
91,438
    
$
114,615
    
$
8,291
    
$
562,529
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
     —       —       832       282       1,225       4,921       10       7,270  
Total consumer 1-4 family residential loans
  
$
19,328
    
$
82,956
    
$
96,141
    
$
150,874
    
$
92,663
    
$
119,536
    
$
8,301
    
$
569,799
  
Year-to-date gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
 
                                                                
Consumer auto loans
                                                                
Pass
  
$
35,878
      
67,973
      
63,476
      
65,823
      
21,317
      
6,667
      
—
      
261,134
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
     —       39       103       168       141       44       —       495  
Total consumer auto loans
  
$
35,878
    
$
68,012
    
$
63,579
    
$
65,991
    
$
21,458
    
$
6,711
    
$
—
    
$
261,629
  
Year-to-date gross charge-offs
  
$
—
    
$
13
    
$
120
    
$
115
    
$
37
    
$
18
    
$
—
    
$
303
  
 
                                                                
Consumer other consumer
                                                                
Pass
  
$
8,457
    
$
20,103
    
$
11,211
    
$
12,519
    
$
4,451
    
$
5,926
    
$
1,312
    
$
63,979
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
     —       18       —       18       37       38       —       111  
Total consumer other consumer loans
  
$
8,457
    
$
20,121
    
$
11,211
    
$
12,537
    
$
4,488
    
$
5,964
    
$
1,312
    
$
64,090
  
Year-to-date gross charge-offs (1)
  
$
58
    
$
114
    
$
6
    
$
73
    
$
15
    
$
46
    
$
1
    
$
313
  
                                                 
Construction
                                                
Pass
  
$
18,151
    
$
59,472
    
$
20,635
    
$
1,078
    
$
2,047
    
$
—
    
$
—
    
$
101,383
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
     —       —       658       —       —       —       —       658  
Total construction loans
  
$
18,151
    
$
59,472
    
$
21,293
    
$
1,078
    
$
2,047
    
$
—
    
$
—
    
$
102,041
  
Year-to-date gross charge-offs
  $
—     $
—     $
—     $
—     $
—     $
—     $
—     $
—  

 
(1)
Includes $58 thousand in charged-off demand deposit overdrafts reported as 2025 originations.

                     
Term Loans
                    
               
Amortized Cost Basis by Origination Year
December 31, 2024
              

(Dollars in thousands)
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Revolving Loans
    
Total
  
                                                 
Commercial real estate
                                                
Pass
  
$
164,205
    
$
233,047
    
$
300,828
    
$
126,548
    
$
43,628
    
$
175,319
    
$
6,417
    
$
1,049,992
  
Special mention
    
—
      
—
      
—
      
32,243
      
441
      
5,464
      
483
      
38,631
  
Substandard
    
—
      
—
      
147
      
25,164
      
3,125
      
2,004
      
—
      
30,440
  
Total commercial real estate loans
  
$
164,205
    
$
233,047
    
$
300,975
    
$
183,955
    
$
47,194
    
$
182,787
    
$
6,900
    
$
1,119,063
  
Year-to-date gross charge-offs
  
$
—
    
$
—
    
$
65
    
$
—
    
$
—
    
$
22
    
$
—
    
$
87
  
 
                                                                
Commercial - specialized
                                                                
Pass
  
$
103,288
    
$
60,881
    
$
37,940
    
$
41,721
    
$
15,678
    
$
28,488
    
$
98,092
    
$
386,088
  
Special mention
    
214
      
—
      
1,600
      
—
      
—
      
—
      
—
      
1,814
  
Substandard
    
510
      
—
      
85
      
84
      
297
      
77
      
—
      
1,053
  
Total commercial - specialized loans
  
$
104,012
    
$
60,881
    
$
39,625
    
$
41,805
    
$
15,975
    
$
28,565
    
$
98,092
    
$
388,955
  
Year-to-date gross charge-offs
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
  
                                                                 
Commercial - general
                                                                
Pass
  
$
107,947
    
$
72,500
    
$
109,808
    
$
65,564
    
$
29,808
    
$
82,909
    
$
78,321
    
$
546,857
  
Special mention
    
—
      
—
      
960
      
554
      
—
      
499
      
200
      
2,213
  
Substandard
    
98
      
463
      
2,405
      
4,427
      
19
      
805
      
84
      
8,301
  
Total commercial - general loans
  
$
108,045
    
$
72,963
    
$
113,173
    
$
70,545
    
$
29,827
    
$
84,213
    
$
78,605
    
$
557,371
  
Year-to-date gross charge-offs
  
$
—
    
$
199
    
$
466
    
$
17
    
$
—
    
$
134
    
$
266
    
$
1,082
  
                                                                 
Consumer 1-4 family residential
                                                                
Pass
  
$
87,266
    
$
101,022
    
$
150,358
    
$
91,929
    
$
49,057
    
$
73,730
    
$
5,800
    
$
559,162
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
    
—
      
810
      
284
      
1,057
      
225
      
4,812
      
50
      
7,238
  
Total consumer 1-4 family residential loans
  
$
87,266
    
$
101,832
    
$
150,642
    
$
92,986
    
$
49,282
    
$
78,542
    
$
5,850
    
$
566,400
  
Year-to-date gross charge-offs
  
$
—
    
$
—
    
$
121
    
$
51
    
$
—
    
$
3
    
$
—
    
$
175
  
                                                                 
Consumer auto loans
                                                                
Pass
  
$
70,621
      
72,009
      
76,412
      
25,869
      
7,293
      
1,931
      
—
      
254,135
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
    
21
      
28
      
82
      
179
      
4
      
25
      
—
      
339
  
Total consumer auto loans
  
$
70,642
    
$
72,037
    
$
76,494
    
$
26,048
    
$
7,297
    
$
1,956
    
$
—
    
$
254,474
  
Year-to-date gross charge-offs
  
$
23
    
$
386
    
$
519
    
$
198
    
$
25
    
$
35
    
$
—
    
$
1,186
  
                                                                 
Consumer other consumer
                                                                
Pass
  
$
23,665
    
$
12,969
    
$
14,790
    
$
5,477
    
$
1,232
    
$
5,382
    
$
1,324
    
$
64,839
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
    
—
      
—
      
8
      
47
      
—
      
42
      
—
      
97
  
Total consumer other consumer loans
  
$
23,665
    
$
12,969
    
$
14,798
    
$
5,524
    
$
1,232
    
$
5,424
    
$
1,324
    
$
64,936
  
Year-to-date gross charge-offs (1)
  
$
469
    
$
308
    
$
245
    
$
43
    
$
29
    
$
145
    
$
18
    
$
1,257
  
                                                 
Construction
                                                
Pass
  
$
65,920
    
$
30,572
    
$
2,172
    
$
2,630
    
$
—
    
$
—
    
$
891
    
$
102,185
  
Special mention
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Substandard
    
—
      
1,190
      
480
      
—
      
—
      
—
      
—
      
1,670
  
Total construction loans
  
$
65,920
    
$
31,762
    
$
2,652
    
$
2,630
    
$
—
    
$
—
    
$
891
    
$
103,855
  
Year-to-date gross charge-offs
  
$
—
    
$
315
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
315
  

 
(1)
Includes $457 thousand in charged-off demand deposit overdrafts reported as 2024 originations.

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other than insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. In some cases, the Company provides multiple types of concessions on one loan. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period.

The following tables present the amortized cost basis of loans at the dates indicated that were both experiencing financial difficulty and modified during each of the three months ended March 31, 2025 and 2024, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below (dollars in thousands):

   
Payment
Delay
    
Term
Extension
    
Rate
Reduction
    
Term
Extension
and
Payment
Delay
    
Term
Extension
and Interest
Rate
Reduction
    
Payment
Delay and
Interest
Rate
Reduction
    
Payment
Delay, Term
Extension,
and Interest
Rate
Reduction
    
Total Class
of Financing
Receivable
  
March 31, 2025
                                                
Commercial real estate
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
      
—
  
Commercial - specialized
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Commercial - general
    
—
      
270
      
—
      
43
      
—
      
—
      
—
      
0.05
%
Consumer:
                                                                
1-4 family
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Auto loans
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Other consumer
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Construction
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
   
$
—
    
$
270
    
$
—
    
$
43
    
$
—
    
$
—
    
$
—
      
0.01
%
March 31, 2024
                                                                
Commercial real estate
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
—
      
—
  
Commercial - specialized
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Commercial - general
    
—
      
—
      
—
      
—
      
35
      
—
      
—
      
0.01
%
Consumer:
                                                                
1-4 family
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Auto loans
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Other consumer
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
Construction
    
—
      
—
      
—
      
—
      
—
      
—
      
—
      
—
  
   
$
—
    
$
—
    
$
—
    
$
—
    
$
35
    
$
—
    
$
—
      
—
  

The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for each of the three months ended March 31, 2025 and 2024 (dollars in thousands):

 
  
Principal
Forgiveness
    
Weighted-
Average
Interest Rate
Reduction
    
Weighted-
Average
Term
Extension
(Months)
  
March 31, 2025
                  
Commercial real estate
  
$
—
      
—
   
—
  
Commercial - specialized
    
—
      
—
   
—
  
Commercial - general
    
—
      
—
   
36
  
Consumer:
                        
1-4 Family residential
    
—
      
—
   
—
  
Auto loans
    
—
      
—
   
—
  
Other consumer
    
—
      
—
   
—
  
Construction
    
—
      
—
   
—
  
 
  
$
—
      
—
   
36
  

March 31, 2024
                  
Commercial real estate
  
$
—
      
—
   
—
  
Commercial - specialized
    
—
      
—
   
—
  
Commercial - general
    
—
      
1.75
%
    
49
  
Consumer:
                        
1-4 Family residential
    
—
      
—
   
—
  
Auto loans
    
—
      
—
   
—
  
Other consumer
    
—
      
—
   
—
  
Construction
    
—
      
—
   
—
  
   
$
—
      
1.75
%
    
49
  

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following presents the performance of such loans that have been modified in the last twelve months at the dates indicated (dollars in thousands):

   
Current
    
30-89 Days
Past Due
    
90 Days or
More Past
Due
    
Nonaccrual
  
March 31, 2025
                        
Commercial real estate
  
$
90
    
$
46
    
$
—
    
$
336
  
Commercial - specialized
    
—
      
—
      
—
      
12
  
Commercial - general
    
607
      
—
      
—
      
172
  
Consumer:
                                
1-4 Family residential
    
1,025
      
238
      
60
      
—
  
Auto loans
    
—
      
—
      
—
      
—
  
Other consumer
    
—
      
—
      
—
      
—
  
Construction
    
—
      
—
      
—
      
141
  
   
$
1,722
    
$
284
    
$
60
    
$
661
  

March 31, 2024
                        
Commercial real estate
  
$
2,241
    
$
—
    
$
—
    
$
—
  
Commercial - specialized
    
165
      
—
      
—
      
16
  
Commercial - general
    
1,176
      
—
      
—
      
290
  
Consumer:
                                
1-4 Family residential
    
484
      
23
      
—
      
11
  
Auto loans
    
86
      
—
      
—
      
—
  
Other consumer
    
—
      
5
      
—
      
—
  
Construction
    
2,399
      
—
      
—
      
—
  
   
$
6,551
    
$
28
    
$
—
    
$
317
  

During the three months ended March 31, 2025, the Company had three loans made to borrowers experiencing financial difficulty totaling $141 thousand that were modified during the last twelve months that subsequently defaulted. During the three months ended March 31, 2024, the Company had no loans made to borrowers experiencing financial difficulty that were modified during the last twelve months that subsequently defaulted. Payment default is defined as movement to nonperforming status, foreclosure, or charge-off.