Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

Loans and Allowance for Credit Losses

Loans and Allowance for Credit Losses

Note 3: Loans and Allowance for Credit Losses

A summary of loans by major category as of December 31, 2024 and 2023 is a follows:

	December 31, 2024		December 31, 2023
Real estate:
One to four family residential	$	130,077,444	$	122,239,967
Home equity		2,241,326		2,063,651
Equity line of credit		5,823,673		4,146,620
Construction		6,755,376		3,978,450
Multi-family		1,271,343		1,485,002
Commercial		2,587,784		2,333,631
Commercial installment		3,513,472		4,373,435
Consumer:
Marine and recreational		31,150,048		30,800,279
Other consumer		4,211,711		4,038,013
Subtotal		187,632,177		175,459,048
Allowance for credit losses		(1,126,422)		(1,056,796)
Unearned loan fees		(151,319)		(87,081)
Loans, net	$	186,354,436	$	174,315,171

Changes in the allowance for the year ended December 31, 2024, are as follows:

	For the year ended December 31, 2024
	Beginning		Provision for						Ending
	Balance		Credit Loss		Charge-offs			Recoveries	Balance
Real estate:
One to four family residential	$	654,754	$	(15,176)	$	—	$	—	$	639,578
Home equity		11,045		(25)		—		—		11,020
Equity line of credit		22,193		6,441		—		—		28,634
Construction		21,293		52,151		—		—		73,444
Multi-family		7,948		(1,697)		—		—		6,251
Commercial		26,323		4,301		—		—		30,624
Commercial Installment		44,972		(2,343)		—		—		42,629
Consumer:
Marine and recreational		241,624		27,462		(9,889)		—		259,197
Other consumer		26,644		14,136		(11,554)		5,819		35,045
Total	$	1,056,796	$	85,250	$	(21,443)	$	5,819	$	1,126,422

Changes in the allowance for the year ended December 31, 2023, are as follows:

	For the year ended December 31, 2023
	Beginning		Impact of		Provision for						Ending
	Balance		Adopting ASC 326		Credit Loss		Charge-offs		Recoveries		Balance
Real estate:
One to four family residential	$	407,598	$	164,130	$	83,026	$	—	$	—	$	654,754
Home equity		3,406		2,478		5,161		—		—		11,045
Equity line of credit		13,105		6,591		2,497		—		—		22,193
Construction		3,715		2,455		15,123		—		—		21,293
Multi-family		6,519		4,741		(3,312)		—		—		7,948
Commercial		10,711		31,608		(15,996)		—		—		26,323
Commercial Installment		9,516		35,236		220		—		—		44,972
Consumer:
Marine and recreational		402,074		(218,582)		58,132		—		—		241,624
Other consumer		52,713		(28,657)		188		(22,833)		25,233		26,644
Total	$	909,357	$	—	$	145,039	$	(22,833)	$	25,233	$	1,056,796

The ACL on loans excludes $81,544 of allowance for unfunded commitments as of December 31, 2024 and is recorded within accrued interest payable and other liabilities on the Consolidated Balance Sheets. A provision for credit loss on unfunded loan commitments of $81,544 was made for the year ended December 31, 2024. There was no ACL on unfunded commitments as of December 31, 2023.

As of December 31, 2024, there were two collateral dependent loans totaling $12,704 in the other consumer loan segment. These loans were secured by automobiles and do not have a specific allocation to the ACL as of December 31, 2024. There were no other collateral dependent loans as of December 31, 2024.

As of December 31, 2023, there was one collateral dependent loan totaling $9,889 in the marine and recreational loan segment. This loan was collateralized by a licensed recreational vehicle and had $4,889 in the ACL as of December 31, 2023. There were no other collateral dependent loans as of December 31, 2023.

The Company regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses. The credit quality indicators monitored differ depending on the class of loan.

Multi-family, commercial real estate, and commercial installment loans are generally evaluated using the following internally prepared ratings:

● Pass ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable.

● Special mention ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable.

● Substandard ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable.

● Doubtful ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely.

One to four family residential, home equity, equity line of credit, construction, marine and recreational, and other consumer loans are generally evaluated based on whether the loan is performing according to the contractual terms of the loan.

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category and year of origination at December 31, 2024 and 2023.

	Total Loans by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving		Total
At December 31, 2024
Real estate
One to four family residential
Performing	$	19,412,939	$	9,559,853	$	33,402,127	$	11,738,171	$	30,020,711	$	25,943,643	$	—	$	130,077,444
Non performing		—		—		—		—		—		—		—		—
Total one to four family residential	$	19,412,939	$	9,559,853	$	33,402,127	$	11,738,171	$	30,020,711	$	25,943,643	$	—	$	130,077,444
Home equity
Performing	$	863,805	$	750,208	$	438,473	$	16,623	$	91,757	$	80,460	$	—	$	2,241,326
Non performing		—		—		—		—		—		—		—		—
Total home equity	$	863,805	$	750,208	$	438,473	$	16,623	$	91,757	$	80,460	$	—	$	2,241,326
Equity line of credit
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	5,823,673	$	5,823,673
Non performing		—		—		—		—		—		—		—		—
Total equity line of credit	$	—	$	—	$	—	$	—	$	—	$	—	$	5,823,673	$	5,823,673
Construction
Performing	$	3,754,653	$	2,721,970	$	73,963	$	—	$	111,209	$	93,581	$	—	$	6,755,376
Non performing		—		—		—		—		—		—		—		—
Total construction	$	3,754,653	$	2,721,970	$	73,963	$	—	$	111,209	$	93,581	$	—	$	6,755,376
Multi-family
Pass	$	—	$	—	$	—	$	209,884	$	126,373	$	935,086	$	—	$	1,271,343
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total multi-family	$	—	$	—		—	$	209,884		126,373	$	935,086	$	—	$	1,271,343
Commercial
Pass	$	704,843	$	152,169	$	1,300,428	$	248,414	$	66,094	$	115,836	$	—	$	2,587,784
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total commercial	$	704,843	$	152,169	$	1,300,428	$	248,414	$	66,094	$	115,836	$	—	$	2,587,784
Commercial installment
Pass	$	167,507	$	258,478	$	354,102	$	1,069,667	$	1,479,869	$	183,849	$	—	$	3,513,472
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total commercial installment	$	167,507	$	258,478	$	354,102	$	1,069,667	$	1,479,869	$	183,849	$	—	$	3,513,472
Consumer
Marine and recreational
Performing	$	6,977,323	$	8,035,562	$	3,062,227	$	650,645	$	1,510,484	$	10,913,807	$	—	$	31,150,048
Non performing		—		—		—		—		—		—		—		—
Total marine and recreational	$	6,977,323	$	8,035,562	$	3,062,227	$	650,645	$	1,510,484	$	10,913,807	$	—	$	31,150,048
Other consumer
Performing	$	785,431	$	534,610	$	613,732	$	208,806	$	40,975	$	2,015,453	$	—	$	4,199,007
Non performing		—		—		12,704		—		—		—		—		12,704
Total other consumer	$	785,431	$	534,610	$	626,436	$	208,806	$	40,975	$	2,015,453	$	—	$	4,211,711
Total loans	$	32,666,501	$	22,012,850	$	39,257,756	$	14,142,210	$	33,447,472	$	40,281,715	$	5,823,673	$	187,632,177

	Total Loans by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
At December 31, 2023
Real estate
One to four family residential
Performing	$	9,639,759	$	34,992,254	$	13,184,881	$	33,531,897	$	6,940,657	$	23,950,519	$	—	$	122,239,967
Non performing		—		—		—		—		—		—		—		—
Total one to four family residential	$	9,639,759	$	34,992,254	$	13,184,881	$	33,531,897	$	6,940,657	$	23,950,519	$	—	$	122,239,967
Home equity
Performing	$	991,616	$	714,749	$	119,200	$	108,052	$	28,343	$	101,691	$	—	$	2,063,651
Non performing		—		—		—		—		—		—		—		—
Total home equity	$	991,616	$	714,749	$	119,200	$	108,052	$	28,343	$	101,691	$	—	$	2,063,651
Equity line of credit
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	4,146,620	$	4,146,620
Non performing		—		—		—		—		—		—		—		—
Total equity line of credit	$	—	$	—	$	—	$	—	$	—	$	—	$	4,146,620	$	4,146,620
Construction
Performing	$	2,258,809	$	1,194,457	$	295,614	$	126,457	$	—	$	103,113	$	—	$	3,978,450
Non performing		—		—		—		—		—		—		—		—
Total construction	$	2,258,809	$	1,194,457	$	295,614	$	126,457	$	—	$	103,113	$	—	$	3,978,450
Multi-family
Pass	$	—	$	—	$	218,321	$	144,525	$	827,329	$	294,827	$	—	$	1,485,002
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total multi-family	$	—	$	—	$	218,321	$	144,525	$	827,329	$	294,827	$	—	$	1,485,002
Commercial
Pass	$	439,270	$	1,348,841	$	353,171	$	62,819	$	—	$	129,530	$	—	$	2,333,631
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total commercial	$	439,270	$	1,348,841	$	353,171	$	62,819	$	—	$	129,530	$	—	$	2,333,631
Commercial installment
Pass	$	360,575	$	410,038	$	1,379,228	$	2,011,973	$	—	$	211,621	$	—	$	4,373,435
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total commercial installment	$	360,575	$	410,038	$	1,379,228	$	2,011,973	$	—	$	211,621	$	—	$	4,373,435
Consumer
Marine and recreational
Performing	$	9,291,668	$	3,297,641	$	719,234	$	1,966,591	$	2,779,140	$	12,746,005	$	—	$	30,800,279
Non performing		—		—		—		—		—		—		—		—
Total marine and recreational	$	9,291,668	$	3,297,641	$	719,234	$	1,966,591	$	2,779,140	$	12,746,005	$	—	$	30,800,279
Other consumer
Performing	$	1,433,967	$	1,645,920	$	562,650	$	100,763	$	158,196	$	118,546	$	—	$	4,020,042
Non performing		—		17,971		—		—		—		—		—		17,971
Total other consumer	$	1,433,967	$	1,663,891	$	562,650	$	100,763	$	158,196	$	118,546	$	—	$	4,038,013
Total loans	$	24,415,664	$	43,621,871	$	16,832,299	$	38,053,077	$	10,733,665	$	37,655,852	$	4,146,620	$	175,459,048

Year-to-date gross charge-offs for the periods presented are not included in the above tables as the amounts are considered insignificant.

Loan aging information as of December 31, 2024 and 2023, follows:

	Accruing
			Loans Past		Loans				Nonaccrual
	Current		Due 31-89		Past Due				with an
	Loans		Days		90+ Days		Nonaccrual		ACL		Total Loans
December 31, 2024
Real estate:
One to four family residential	$	128,031,279	$	1,741,706	$	304,459	$	—	$	—	$	130,077,444
Home equity		2,241,326		—		—		—		—		2,241,326
Equity line of credit		5,823,673		—		—		—		—		5,823,673
Construction		6,754,686		690		—		—		—		6,755,376
Multi-family		1,271,343		—		—		—		—		1,271,343
Commercial		2,587,784		—		—		—		—		2,587,784
Commercial installment		3,513,472		—		—		—		—		3,513,472
Consumer		—
Marine and recreational		31,016,018		134,030		—		—		—		31,150,048
Other consumer		4,199,007		—		—		12,704		—		4,211,711
Totals	$	185,438,588	$	1,876,426	$	304,459	$	12,704	$	—	$	187,632,177

	Accruing
			Loans Past		Loans		Nonaccrual		Nonaccrual		Nonaccrual
	Current		Due 31-89		Past Due		loans beginning		loans end		end of period
	Loans		Days		90+ Days		of period		of period		with an ACL		Total Loans
December 31, 2023
Real estate:
One to four family residential	$	120,678,966	$	1,561,001	$	—	$	36,829	$	—	$	—	$	122,239,967
Home equity		2,063,651		—		—		—		—		—		2,063,651
Equity line of credit		4,086,622		59,998		—		—		—		—		4,146,620
Construction		3,978,450		—		—		—		—		—		3,978,450
Multi-family		1,485,002		—		—		—		—		—		1,485,002
Commercial		2,333,631		—		—		—		—		—		2,333,631
Commercial installment		4,373,435		—		—		—		—		—		4,373,435
Consumer
Marine and recreational		30,550,492		249,787		—		—		—		—		30,800,279
Other consumer		4,020,042		—		—		132		17,971		—		4,038,013
Totals	$	173,570,291	$	1,870,786	$	—	$	36,961	$	17,971	$	—	$	175,459,048

Interest income received on nonaccrual loans is considered to be immaterial to the consolidated financial statements.

The Bank may modify loans to borrowers experiencing financial difficulty by providing modifications to repayment terms. There were no loans subject to such modifications as of December 31, 2024 or December 31,2023.

A summary of loans to directors, executive officers, and their affiliates as of December 31, 2024 and 2023 is as follows:

	December 31, 2024		December 31, 2023
Balance at beginning of period	$	27,004	$	42,708
New loans		28,230		—
Repayments		(10,519)		(15,704)
Balance at end of period	$	44,715	$	27,004