XML 34 R16.htm IDEA: XBRL DOCUMENT v3.25.1
Allowance for Credit Losses on Loans and Off-Balance Sheet Credit Exposures
 12 Months Ended
Dec. 31, 2024
Credit Loss [Abstract]  
Allowance for Credit Losses on Loans and Off-Balance Sheet Credit Exposures Allowance for Credit Losses on Loans and Off-Balance Sheet Credit Exposures
Changes in the ACL on loans, by class of loans, for the years ended December 31, 2024 and 2023 were as follows:
December 31, 2024Balance, December 31, 2023Charge-OffsRecoveriesCredit Loss Expense (Benefit)Balance, December 31, 2024
(Dollars in thousands)
Non-revolving residential real estate$2,361 $— $24 $827 $3,212 
Revolving residential real estate159 — — 121 280 
Residential real estate2,520 — 24 948 3,492 
Commercial construction real estate1,035 — — (384)651 
Residential construction real estate163 — — (61)102 
Construction real estate1,198 — — (445)753 
Non-residential commercial real estate2,182 — — 584 2,766 
Multi-family residential real estate244 — — (32)212 
Commercial real estate2,426 — — 552 2,978 
Commercial352 — 1 24 377 
Consumer5 (3)— 4 6 
Municipal65 — — 9 74 
Total$6,566 $(3)$25 $1,092 $7,680 

December 31, 2023Balance, December 31, 2022Impact of Adoption of ASU No. 2016-13Charge-OffsRecoveriesCredit Loss Expense (Benefit)Balance, December 31, 2023
(Dollars in thousands)
Non-revolving residential real estate$2,294 $(270)$— $1 $336 $2,361 
Revolving residential real estate123 25 — — 11 159 
Residential real estate2,417 (245)— 1 347 2,520 
Commercial construction real estate611 982 — — (558)1,035 
Residential construction real estate421 (290)— — 32 163 
Construction real estate1,032 692 — — (526)1,198 
Non-residential commercial real estate2,931 (757)— — 8 2,182 
Multi-family residential real estate1,004 (780)— — 20 244 
Commercial real estate3,935 (1,537)— — 28 2,426 
Commercial301 191 — — (140)352 
Consumer10 (5)(8)3 5 5 
Municipal95 (42)— — 12 65 
Unallocated549 (549)— — — — 
Total$8,339 $(1,495)$(8)$4 $(274)$6,566 

The Company's ACL on off-balance sheet credit exposures is recognized as a liability within Accrued interest and other liabilities on the consolidated balance sheet, with adjustments to the ACL recognized in Credit loss expense (benefit) in the consolidated statement of income. The Company's activity in the ACL on off-balance sheet credit exposures for the years ended December 31, 2024 and 2023 were as follows:
For the Years Ended December 31,
20242023
ACL on Off-Balance Sheet Credit Exposures(Dollars in thousands)
Balance at beginning of period$1,233 $— 
Impact of adoption of ASU No. 2016-13— 1,458 
Credit loss benefit(162)(225)
Balance at end of period$1,071 $1,233 

Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel, with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system:
1-3 Rating - Pass
Risk-rating grades "1" through "3" comprise those loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer.
4-4.5 Rating - Satisfactory/Monitor
Borrowers exhibit potential credit weaknesses or downward trends warranting management's attention. While potentially weak, these borrowers are currently marginally acceptable; no loss of principal or interest is envisioned. When warranted, these credits may be monitored on the watch list.
5-7 Rating - Substandard
Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. The loan may be inadequately protected by the net worth and paying capacity of the obligor and/or the underlying collateral is inadequate.
The following tables summarize the Company's loans by year of origination and by loan ratings applied by management to the Company's loans by class as of December 31, 2024 and December 31, 2023:
December 31, 202420242023202220212020PriorRevolvingTotal
Residential Real Estate(Dollars in thousands)
Pass$83,371 $70,515 $100,168 $79,234 $27,326 $51,661 $— $412,275 
Satisfactory/Monitor5,381 5,065 10,744 3,642 2,450 5,627 — 32,909 
Substandard— — — — 158 83 — 241 
Non-revolving residential real estate88,752 75,580 110,912 82,876 29,934 57,371 — 445,425 
Pass— — — — — — 20,516 20,516 
Satisfactory/Monitor— — — — — — 1,344 1,344 
Substandard— — — — — — 24 24 
Revolving residential real estate— — — — — — 21,884 21,884 
Construction Real Estate
Pass8,968 2,216 4,514 1,460 559 714 — 18,431 
Satisfactory/Monitor13,524 15,276 1,760 5,800 53 141 — 36,554 
Substandard— — — — — — — — 
Commercial construction real estate22,492 17,492 6,274 7,260 612 855 — 54,985 
Pass34,189 8,725 960 — — — — 43,874 
Satisfactory/Monitor2,199 1,547 136 2,307 1,139 — — 7,328 
Substandard— — — — — — — — 
Residential construction real estate36,388 10,272 1,096 2,307 1,139 — — 51,202 
Commercial Real Estate
Pass3,427 10,481 49,645 31,969 17,227 64,073 5,431 182,253 
Satisfactory/Monitor48,068 17,365 15,874 13,967 5,297 27,610 14,954 143,135 
Substandard— — — — 1,606 2,969 47 4,622 
Non-residential commercial real estate51,495 27,846 65,519 45,936 24,130 94,652 20,432 330,010 
Pass1,720 283 4,329 10,115 1,853 31,787 — 50,087 
Satisfactory/Monitor563 2,484 14,980 10,291 5,535 20,132 — 53,985 
Substandard— — — — — 256 — 256 
Multi-family residential real estate2,283 2,767 19,309 20,406 7,388 52,175 — 104,328 
Pass3,224 2,583 4,417 1,517 370 7,492 3,483 23,086 
Satisfactory/Monitor1,958 2,438 899 1,977 203 2,595 1,295 11,365 
Substandard— — — — — — 724 724 
Commercial5,182 5,021 5,316 3,494 573 10,087 5,502 35,175 
Pass1,253 777 105 53 66 188 24 2,466 
Satisfactory/Monitor57 — — — — — — 57 
Substandard— — — — — — — — 
Consumer1,310 777 105 53 66 188 24 2,523 
Pass93,280 10,482 1,363 606 1,272 3,201 — 110,204 
Satisfactory/Monitor— — — — — — — — 
Substandard— — — — — — — — 
Municipal93,280 10,482 1,363 606 1,272 3,201 — 110,204 
Total Loans$301,182 $150,237 $209,894 $162,938 $65,114 $218,529 $47,842 $1,155,736 
December 31, 202320232022202120202019PriorRevolvingTotal
Residential Real Estate(Dollars in thousands)
Pass$84,211 $112,215 $83,137 $29,704 $8,991 $53,021 $— $371,279 
Satisfactory/Monitor4,362 7,038 5,671 2,280 386 5,873 — 25,610 
Substandard— — — 14 — 506 — 520 
Non-revolving residential real estate88,573 119,253 88,808 31,998 9,377 59,400 — 397,409 
Pass— — — — — — 17,133 17,133 
Satisfactory/Monitor— — — — — — 1,724 1,724 
Substandard— — — — — — 45 45 
Revolving residential real estate— — — — — — 18,902 18,902 
Construction Real Estate
Pass3,736 5,767 2,736 616 437 873 — 14,165 
Satisfactory/Monitor10,312 3,673 8,352 355 — 116 — 22,808 
Substandard— — — — — — — — 
Commercial construction real estate14,048 9,440 11,088 971 437 989 — 36,973 
Pass24,496 17,904 498 — — 123 — 43,021 
Satisfactory/Monitor3,978 2,114 568 1,981 — — — 8,641 
Substandard— — — — — — — — 
Residential construction real estate28,474 20,018 1,066 1,981 — 123 — 51,662 
Commercial Real Estate
Pass5,977 44,428 34,562 18,327 23,650 57,197 16,629 200,770 
Satisfactory/Monitor17,908 24,563 13,819 5,552 6,172 23,521 3,486 95,021 
Substandard— — — 1,773 — 516 68 2,357 
Non-residential commercial real estate23,885 68,991 48,381 25,652 29,822 81,234 20,183 298,148 
Pass250 5,364 10,208 2,061 8,226 34,993 — 61,102 
Satisfactory/Monitor841 12,485 11,863 5,664 9,933 2,126 — 42,912 
Substandard— — — — — 1,330 — 1,330 
Multi-family residential real estate1,091 17,849 22,071 7,725 18,159 38,449 — 105,344 
Pass1,958 6,394 2,125 671 2,849 7,755 4,992 26,744 
Satisfactory/Monitor1,914 1,243 2,350 467 132 6,717 648 13,471 
Substandard— — — — — 4 229 233 
Commercial3,872 7,637 4,475 1,138 2,981 14,476 5,869 40,448 
Pass1,566 342 131 98 229 175 28 2,569 
Satisfactory/Monitor20 — — — — — — 20 
Substandard— — — — — — — — 
Consumer1,586 342 131 98 229 175 28 2,589 
Pass66,396 2,942 986 1,931 130 4,410 — 76,795 
Satisfactory/Monitor— — — — — — — — 
Substandard— — — — — — — — 
Municipal66,396 2,942 986 1,931 130 4,410 — 76,795 
Total Loans$227,925 $246,472 $177,006 $71,494 $61,135 $199,256 $44,982 $1,028,270 

Gross charge-offs for the year ended December 31, 2024 consisted of two consumer loans totaling $1 thousand that were originated in 2021 and two consumer loans totaling $2 thousand that were originated in 2024. Gross charge-offs for the year ended December 31, 2023 consisted of two consumer loans totaling $8 thousand that were originated in 2022.
A summary of current and past due loans as of December 31, 2024 and December 31, 2023 follows:
December 31, 202430-59 Days60-89 Days90 Days and OverTotal Past DueCurrentTotal
(Dollars in thousands)
Residential real estate
Non-revolving residential real estate$1,560 $1,158 $241 $2,959 $442,466 $445,425 
Revolving residential real estate— — — — 21,884 21,884 
Construction real estate
Commercial construction real estate— — — — 54,985 54,985 
Residential construction real estate— — — — 51,202 51,202 
Commercial real estate
Non-residential commercial real estate355 46 — 401 329,609 330,010 
Multi-family residential real estate— — — — 104,328 104,328 
Commercial45 — — 45 35,130 35,175 
Consumer— 4 — 4 2,519 2,523 
Municipal— — — — 110,204 110,204 
Total$1,960 $1,208 $241 $3,409 $1,152,327 $1,155,736 

December 31, 202330-59 Days60-89 Days90 Days and OverTotal Past DueCurrentTotal
(Dollars in thousands)
Residential real estate
Non-revolving residential real estate$2,015 $312 $162 $2,489 $394,920 $397,409 
Revolving residential real estate— — 17 17 18,885 18,902 
Construction real estate
Commercial construction real estate17 — — 17 36,956 36,973 
Residential construction real estate— — — — 51,662 51,662 
Commercial real estate
Non-residential commercial real estate197 — — 197 297,951 298,148 
Multi-family residential real estate1,058 — — 1,058 104,286 105,344 
Commercial4 — — 4 40,444 40,448 
Consumer14 — — 14 2,575 2,589 
Municipal— — — — 76,795 76,795 
Total$3,305 $312 $179 $3,796 $1,024,474 $1,028,270 

A summary of nonaccrual loans as of December 31, 2024 and December 31, 2023 follows:
December 31, 2024NonaccrualNonaccrual With No Allowance for Credit Losses90 Days and Over and Accruing
Residential real estate(Dollars in thousands)
Non-revolving residential real estate$— $— $241 
Commercial real estate
Non-residential commercial real estate1,652 1,652 — 
Total$1,652 $1,652 $241 
December 31, 2023NonaccrualNonaccrual With No Allowance for Credit Losses90 Days and Over and Accruing
Residential real estate(Dollars in thousands)
Non-revolving residential real estate$— $— $162 
Revolving residential real estate17 — — 
Commercial real estate
Non-residential commercial real estate1,841 1,841 — 
Total$1,858 $1,841 $162 

There was one residential real estate loan totaling $8 thousand in process of foreclosure at December 31, 2024 and one revolving residential real estate loan totaling $17 thousand in process of foreclosure at December 31, 2023. Aggregate interest on nonaccrual loans not recognized was $235 thousand as of December 31, 2024 and $143 thousand as of December 31, 2023.
Loans that do not share risk characteristics are evaluated on an individual basis. Loans that are individually evaluated and collateral dependent represent loans that the Company has determined foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the sale of the collateral. For these loans, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan at the measurement date.
The following table presents collateral dependent loans to borrowers experiencing financial difficulty by loan class and collateral type as of the balance sheet dates:
December 31, 2024December 31, 2023
(Dollars in thousands)
Non-residential commercial real estate$4,246 $1,841 
Commercial500 — 
Total$4,746 $1,841 

Collateral dependent loans are loans for which the repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment.

Occasionally, the Company modifies loans to borrowers experiencing financial difficulty by providing interest rate reductions, term extensions, payment deferrals or principal forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL on loans. The following tables summarize loan modifications to borrowers experiencing financial difficulty by loan class, type of modification and the financial effect of the modifications as of and for the years ended December 31, 2024 and 2023:
Payment Delay
December 31, 2024
Amortized Cost Basis% of Loan ClassFinancial Effect
(Dollars in thousands)
Non-revolving residential real estate$14 — %
Modification deferred 3 months of principal and interest payments.
Non-residential commercial real estate2,594 0.79 %
Modification allowed for 6 months of interest only payments with remaining balances re-amortized to maturity.
Non-residential commercial real estate257 0.08 %
Modification deferred 3 months of principal and interest payments.
Commercial45 0.13 %
Modification deferred 3 months of principal and interest payments.
Interest Rate Reduction
December 31, 2023
Amortized Cost Basis% of Loan ClassFinancial Effect
(Dollars in thousands)
Non-residential commercial real estate$398 0.13 %
Reduced weighted average contractual interest rate from 8.75% to 6.85%
Multi-family residential real estate440 0.42 %
Reduced weighted average contractual interest rate from 9.25% to 7.75%

Payment Delay
December 31, 2023
Amortized Cost Basis% of Loan ClassFinancial Effect
(Dollars in thousands)
Non-residential commercial real estate$3,383 1.13 %
Modification allowed for 6 months of interest only payments with remaining balances due at maturity.

The following tables present the performance of loans as of December 31, 2024 and 2023 that had been modified in the last twelve months:
December 31, 2024CurrentPast Due
30-89 Days		Past Due 90 Days and Over
(Dollars in thousands)
Non-revolving residential real estate$14 $— $— 
Non-residential commercial real estate2,851 — — 
Commercial— 45 — 

December 31, 2023CurrentPast Due
30-89 Days		Past Due 90 Days and Over
(Dollars in thousands)
Non-residential commercial real estate$3,781 $— $— 
Multi-family residential real estate
440 — — 
There were no loans to borrowers experiencing financial difficulty that were modified within the previous twelve months that had subsequently defaulted during the years ended December 31, 2024 and 2023. Loans are considered defaulted at 90 days past due.

At December 31, 2024 and 2023, the Company was not committed to lend any additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension.