Loans Held for Investment (Tables)

6 Months Ended

Jun. 30, 2025

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Components of Loans

The components of loans were as follows at June 30, 2025 and December 31, 2024:

	June 30, 2025			December 31, 2024
	(dollars in thousands)
Residential mortgage loans (1-4 family):
Fixed	$	95,692		$	98,694
Variable		149,370			155,948
Construction		40,130			34,139
Total residential mortgage loans		285,192			288,781
Commercial loans:
Real estate		254,347			241,063
Other		103,979			94,981
Total commercial loans		358,326			336,044
Consumer loans:
Home equity		110,532			106,550
Other consumer		23,649			26,690
Total consumer loans		134,181			133,240
Total loans held for investment		777,699			758,065
Less:
Undisbursed portion of mortgage loans		(144	)		(161	)
Net deferred loan costs (fees)		(863	)		(1,007	)
Allowance for credit losses		(6,159	)		(6,244	)
Total loans held for investment, net	$	770,533		$	750,653

Summary of Investment in Loans by Credit Quality Indicators by Year of Origin

Loans with a risk rating of 1 through 6 are classified as “Pass” rated credits in the following tables. Nonrated loans are also classified as “Pass.” The following table presents the Company's recorded investment in loans by credit quality indicators by year of origin as of June 30, 2025 and gross charge-offs for the six months ended June 30, 2025.

	Term Loans
1-4 Family Residential	2025		2024		2023		2022		2021		Prior		Revolving Lines		Total
Pass	$	3,075	$	16,041	$	60,226	$	62,085	$	27,982	$	64,874	$	—	$	234,283
Special Mention		—		—		—		254		—		70		—		324
Substandard		—		—		3,736		2,898		1,701		2,120		—		10,455
Doubtful		—		—		—		—		—		—		—		—
Total	$	3,075	$	16,041	$	63,962	$	65,237	$	29,683	$	67,064	$	—	$	245,062
Residential Construction	2025		2024		2023		2022		2021		Prior		Revolving		Total
Pass	$	7,446	$	28,640	$	2,148	$	—	$	—	$	—	$	—	$	38,234
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		1,102		794		—		—		—		—		1,896
Doubtful		—		—		—		—		—		—		—		—
Total	$	7,446	$	29,742	$	2,942	$	—	$	—	$	—	$	—	$	40,130
Commercial Real Estate	2025		2024		2023		2022		2021		Prior		Revolving		Total
Pass	$	13,672	$	56,972	$	45,808	$	36,323	$	10,945	$	75,176	$	15,010	$	253,906
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		441		—		441
Doubtful		—		—		—		—		—		—		—		—
Total	$	13,672	$	56,972	$	45,808	$	36,323	$	10,945	$	75,617	$	15,010	$	254,347
Other Commercial	2025		2024		2023		2022		2021		Prior		Revolving		Total
Pass	$	33,791	$	21,080	$	3,707	$	4,872	$	7,564	$	11,121	$	17,343	$	99,478
Special Mention		—		36		—		—		42		263		224		565
Substandard		—		—		183		1,454		90		1,677		486		3,890
Doubtful		—		—		—		—		—		—		46		46
Total	$	33,791	$	21,116	$	3,890	$	6,326	$	7,696	$	13,061	$	18,099	$	103,979
Home Equity	2025		2024		2023		2022		2021		Prior		Revolving		Total
Pass	$	834	$	4,266	$	7,189	$	1,425	$	54	$	852	$	93,194	$	107,814
Special Mention		—		—		—		—		—		5		—		5
Substandard		86		—		—		23		—		2		2,602		2,713
Doubtful		—		—		—		—		—		—		—		—
Total	$	920	$	4,266	$	7,189	$	1,448	$	54	$	859	$	95,796	$	110,532
Other Consumer	2025		2024		2023		2022		2021		Prior		Revolving		Total
Pass	$	6,109	$	5,918	$	7,031	$	2,249	$	847	$	400	$	1,006	$	23,560
Special Mention		7		6		—		—		—		—		—		13
Substandard		—		39		—		18		—		—		—		57
Doubtful		10		4		5		—		—		—		—		19
Total	$	6,126	$	5,967	$	7,036	$	2,267	$	847	$	400	$	1,006	$	23,649
All Loans	2025		2024		2023		2022		2021		Prior		Revolving		Total
Pass	$	64,927	$	132,917	$	126,109	$	106,954	$	47,392	$	152,423	$	126,553	$	757,275
Special Mention		7		42		-		254		42		338		224		907
Substandard		86		1,141		4,713		4,393		1,791		4,240		3,088		19,452
Doubtful		10		4		5		—		—		—		46		65
Total Loans	$	65,030	$	134,104	$	130,827	$	111,601	$	49,225	$	157,001	$	129,911	$	777,699
Gross charge-offs	$	—	$	197	$	158	$	38	$	35	$	-	$	569	$	997

Loans with a risk rating of 1 through 6 are classified as “Pass” rated credits in the following tables. Nonrated loans are also classified as “Pass.” The following table presents the Company's recorded investment in loans by credit quality indicators by year of origin as of December 31, 2024 and gross charge-offs for the year ended December 31, 2024.

	Term Loans
1-4 Family Residential	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
Pass	$	15,139	$	61,966	$	66,541	$	30,758	$	22,112	$	47,915	$	—	$	244,431
Special Mention		—		—		257		—		—		32		—		289
Substandard		—		3,179		3,254		1,128		140		2,221		—		9,922
Doubtful		—		—		—		—		—		—		—		—
Total	$	15,139	$	65,145	$	70,052	$	31,886	$	22,252	$	50,168	$	—	$	254,642
Residential Construction	2024		2023		2022		2020		2019		Prior		Revolving		Total
Pass	$	23,044	$	11,095	$	—	$	—	$	—	$	—	$	—	$	34,139
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	23,044	$	11,095	$	—	$	—	$	—	$	—	$	—	$	34,139
Commercial Real Estate	2024		2023		2022		2020		2019		Prior		Revolving		Total
Pass	$	50,394	$	47,231	$	40,122	$	11,240	$	17,629	$	73,990	$	—	$	240,606
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		457		—		—		457
Doubtful		—		—		—		—		—		—		—		—
Total	$	50,394	$	47,231	$	40,122	$	11,240	$	18,086	$	73,990	$	—	$	241,063
Other Commercial	2024		2023		2022		2020		2019		Prior		Revolving		Total
Pass	$	39,529	$	4,011	$	6,107	$	8,062	$	5,041	$	4,138	$	23,556	$	90,444
Special Mention		—		—		1,424		—		—		188		—		1,612
Substandard		42		250		226		—		459		1,239		566		2,782
Doubtful		—		45		—		—		—		—		98		143
Total	$	39,571	$	4,306	$	7,757	$	8,062	$	5,500	$	5,565	$	24,220	$	94,981
Home Equity	2024		2023		2022		2020		2019		Prior		Revolving		Total
Pass	$	4,592	$	7,597	$	1,643	$	73	$	62	$	1,020	$	89,267	$	104,254
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		46		—		—		2		2,225		2,273
Doubtful		—		—		—		—		—		—		23		23
Total	$	4,592	$	7,597	$	1,689	$	73	$	62	$	1,022	$	91,515	$	106,550
Other Consumer	2024		2023		2022		2020		2019		Prior		Revolving		Total
Pass	$	10,209	$	9,673	$	3,628	$	1,045	$	507	$	7	$	1,235	$	26,304
Special Mention		189		—		—		—		—		—		—		189
Substandard		—		15		—		1		—		—		47		63
Doubtful		74		36		10		14		—		—		—		134
Total	$	10,472	$	9,724	$	3,638	$	1,060	$	507	$	7	$	1,282	$	26,690
All Loans	2024		2023		2022		2020		2019		Prior		Revolving		Total
Pass	$	142,907	$	141,573	$	118,041	$	51,178	$	45,351	$	127,070	$	114,058	$	740,178
Special Mention		189		-		1,681		-		-		220		-		2,090
Substandard		42		3,444		3,526		1,129		1,056		3,462		2,838		15,497
Doubtful		74		81		10		14		—		—		121		300
Total Loans	$	143,212	$	145,098	$	123,258	$	52,321	$	46,407	$	130,752	$	117,017	$	758,065
Gross charge-offs	$	-	$	123	$	374	$	45	$	178	$	21	$	920	$	1,661

Summary of Changes in the Allowance for Credit Losses

The following table outlines the changes in the allowance for credit losses by category, the allowance for loans individually and collectively evaluated, and the balances of loans individually and collectively evaluated, for the six months ended June 30, 2025:

	1-4 Family						Commercial			Other			Home			Other
	Residential			Construction			Real Estate			Commercial			Equity			Consumer			Total
							(dollars in thousands)
Allowance
Beginning balance, January 1, 2025	$	2,246		$	539		$	257		$	1,209		$	1,224		$	769		$	6,244
Charge-offs		(39	)		(3	)		—			(618	)		(115	)		(222	)		(997	)
Recoveries		—			—			—			57			—			24			81
Provision for Credit Loss		268			35			13			258			130			127			831
Reallocations		(462	)		(304	)		(143	)		1,003			(261	)		167			—
Balance at end of period	$	2,013		$	267		$	127		$	1,909		$	978		$	865		$	6,159
Ending allowance balance for loans individually evaluated	$	683		$	—		$	—		$	205		$	130		$	56		$	1,074
Ending allowance balance for loans collectively evaluated	$	1,330		$	267		$	127		$	1,704		$	848		$	809		$	5,085
Loans Receivable
Total period-end balance	$	245,062		$	40,130		$	254,347		$	103,979		$	110,532		$	23,649		$	777,699
Balance of loans individually evaluated	$	11,558		$	804		$	2,910		$	1,469		$	2,713		$	123		$	19,577
Balance of loans collectively evaluated	$	233,504		$	39,326		$	251,437		$	102,510		$	107,819		$	23,526		$	758,122

The following table outlines the changes in the allowance for credit losses by category, the allowance for loans individually and collectively evaluated, and the balances of loans individually and collectively evaluated, for the year ended December 31, 2024:

	1-4 Family					Commercial			Other			Home		Other
	Residential			Construction		Real Estate			Commercial			Equity		Consumer			Total
						(dollars in thousands)
Allowance
Beginning balance, January 1, 2024	$	1,210		$	1	$	2,218		$	1,586		$	536	$	652		$	6,203
Charge-offs		(306	)		—		—			(1,114	)		—		(241	)		(1,661	)
Recoveries		6			2		—			118			—		46			172
Provision for Credit Loss		550			132		63			296			300		189			1,530
Reallocations		786			404		(2,024	)		323			388		123			—
Balance at end of year	$	2,246		$	539	$	257		$	1,209		$	1,224	$	769		$	6,244
Ending allowance balance for loans individually evaluated	$	477		$	—	$	—		$	283		$	146	$	122		$	1,028
Ending allowance balance for loans collectively evaluated	$	1,769		$	539	$	257		$	926		$	1,078	$	647		$	5,216
Loans Receivable
Total period-end balance	$	254,642		$	34,139	$	241,063		$	94,981		$	106,550	$	26,690		$	758,065
Balance of loans individually evaluated	$	10,350		$	—	$	1,709		$	1,928		$	2,529	$	143		$	16,659
Balance of loans collectively evaluated	$	244,292		$	34,139	$	239,354		$	93,053		$	104,021	$	26,547		$	741,406

Summary of Loan Class of Past Due and Non-accrual Loans

The following tables present a summary by loan class of past due and non-accrual loans as of June 30, 2025 and December 31, 2024 (dollars in thousands):

					Greater Than								Past Due>
	30-59 Days		60-89 Days		90 Days		Total				Total		90 Days and
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing
June 30, 2025
1-4 family residential	$	—	$	6,015	$	7,083	$	13,098	$	231,964	$	245,062	$	—
Construction		—		—		794		794		39,336		40,130		—
Commercial real estate		—		—		—		—		254,347		254,347		—
Other commercial		677		319		678		1,674		102,305		103,979		—
Home equity		1,072		298		1,422		2,792		107,740		110,532		—
Other consumer		551		11		78		640		23,009		23,649		—
Total	$	2,300	$	6,643	$	10,055	$	18,998	$	758,701	$	777,699	$	—

	June 30, 2025
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
1-4 family residential	$	5,139	$	4,897	$	10,036
Construction		—		—		—
Commercial real estate		—		—		—
Other commercial		679		337		1,016
Home equity		1,534		368		1,902
Other consumer		64		28		92
Total	$	7,416	$	5,630	$	13,046

					Greater Than								Past Due>
	30-59 Days		60-89 Days		90 Days		Total				Total		90 Days and
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing
December 31, 2024
1-4 family residential	$	16,549	$	6,043	$	6,026	$	28,618	$	226,024	$	254,642	$	—
Construction		—		—		—		—		34,139		34,139		—
Commercial real estate		101		—		—		101		240,962		241,063		—
Other commercial		401		194		622		1,217		93,764		94,981		—
Home equity		2,073		787		1,217		4,077		102,473		106,550		—
Other consumer		409		80		118		607		26,083		26,690		—
Total	$	19,533	$	7,104	$	7,983	$	34,620	$	723,445	$	758,065	$	—

	December 31, 2024
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
1-4 family residential	$	6,128	$	4,102	$	10,230
Construction		—		—		—
Commercial real estate		—		—		—
Other commercial		484		281		765
Home equity		1,670		164		1,834
Other consumer		35		125		160
Total	$	8,317	$	4,672	$	12,989