The following table presents the composition of loans segregated by class of loans, as of March 31, 2025 and December 31, 2024.


(dollars in thousands)	March 31, 2025		December 31, 2024
Construction, land & land development	$	208,872	$	205,046
Other commercial real estate	1,052,967		990,648
Total commercial real estate	1,261,839		1,195,694
Residential real estate	345,521		344,167
Commercial, financial & agricultural	213,355		213,910
Consumer and other	100,548		89,209
Total Loans	$	1,921,263	$	1,842,980

Commercial, financial & agricultural loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer and other loans are originated at the Bank level.

Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (1) the risk grade assigned to commercial and consumer loans, (2) the level of classified commercial loans, (3) net charge-offs, (4) nonperforming loans, and (5) the general economic conditions in the Company’s geographic markets.

•Grades 1, 2 and 3 - Loans with these assigned risk grades range from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification.

•Grades 4 and 5 - Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. These loans are also included in the “pass” classification.

•Grades 7 and 8 - These grades include “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned grade 8, and these loans often have assigned loss allocations as part of the allowance for credit losses. Generally, loans on which interest accrual has been stopped would be included in this grade range.

•Grades 9 and 10 - These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 7 or 8.

The following tables present the loan portfolio segregated by class of loans and the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of March 31, 2025 and December 31, 2024. Those loans with a risk grade of 1, 2, 3, 4, 5 and 98 have been combined in the pass line for presentation purposes. Loans with a risk grade of 7, 8 and 99 have been combined in the substandard line. There were no loans with a risk rating of "doubtful" or "loss" at March 31, 2025 or December 31, 2024.


	Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolvers		Revolvers converted to term loans		Total
March 31, 2025
Construction, land & land development
Risk rating
Pass	$	35,800	$	82,734	$	36,464	$	26,162	$	16,400	$	7,222	$	62	$	—	$	204,844
Special Mention	—		—		3,214		—		—		406		281		—		3,901
Substandard	—		42		—		—		—		85		—		—		127
Total Construction, land & land development	35,800		82,776		39,678		26,162		16,400		7,713		343		—		208,872

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other commercial real estate
Risk rating
Pass	63,814		81,980		78,914		343,410		178,848		265,263		10,024		1,846		1,024,099
Special Mention	—		—		1,991		2,769		173		4,831		—		527		10,291
Substandard	—		4,583		2,327		6,958		527		3,136		600		446		18,577
Total Other commercial real estate	63,814		86,563		83,232		353,137		179,548		273,230		10,624		2,819		1,052,967

Current period gross write offs	—		—		180		—		—		—		—		—		180

Residential real estate
Risk rating
Pass	6,973		17,584		75,408		110,868		42,177		59,585		23,816		822		337,233
Special Mention	—		—		1,645		—		1,922		2,855		196		—		6,618
Substandard	—		—		—		804		275		591		—		—		1,670
Total Residential real estate	6,973		17,584		77,053		111,672		44,374		63,031		24,012		822		345,521

Current period gross write offs	—		—		—		—		—		1		—		—		1

Commercial, financial & agricultural
Risk rating
Pass	11,843		41,918		41,172		31,191		11,823		21,633		38,552		722		198,854
Special Mention	1,322		1,017		1,766		1,280		142		18		2,880		—		8,425
Substandard	—		128		2,649		1,028		994		899		373		5		6,076
Total Commercial, financial & agricultural	13,165		43,063		45,587		33,499		12,959		22,550		41,805		727		213,355

Current period gross write offs	36		71		68		21		6		60		—		—		262



Consumer and other
Risk rating
Pass	20,201		40,496		34,737		2,288		694		1,548		436		11		100,411
Special Mention	—		134		—		—		—		—		—		—		134
Substandard	—		1		—		—		1		1		—		—		3
Total Consumer and other	20,201		40,631		34,737		2,288		695		1,549		436		11		100,548

Current period gross write offs	—		250		22		4		—		—		—		—		276

Total Loans
Risk rating
Pass	138,631		264,712		266,695		513,919		249,942		355,251		72,890		3,401		1,865,441
Special Mention	1,322		1,151		8,616		4,049		2,237		8,110		3,357		527		29,369
Substandard	—		4,754		4,976		8,790		1,797		4,712		973		451		26,453
Total Loans	$	139,953	$	270,617	$	280,287	$	526,758	$	253,976	$	368,073	$	77,220	$	4,379	$	1,921,263

Total current period gross write offs	$	36	$	321	$	270	$	25	$	6	$	61	$	—	$	—	$	719



	Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolvers		Revolvers converted to term loans		Total
December 31, 2024
Construction, land & land development
Risk rating
Pass	$	98,269	$	47,378	$	25,930	$	23,193	$	1,979	$	5,379	$	53	$	—	$	202,181
Special Mention	—		2,088		—		—		411		—		281		—		2,780
Substandard	—		—		—		—		—		85		—		—		85
Total Construction, land & land development	98,269		49,466		25,930		23,193		2,390		5,464		334		—		205,046

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other commercial real estate
Risk rating
Pass	55,169		85,172		343,123		180,568		76,905		194,444		21,341		1,849		958,571
Special Mention	850		1,999		4,288		173		2,344		7,376		610		1,069		18,709
Substandard	4,114		2,586		2,875		459		352		2,419		563		—		13,368
Total Other commercial real estate	60,133		89,757		350,286		181,200		79,601		204,239		22,514		2,918		990,648

Current period gross write offs	—		—		—		—		—		20		—		—		20

Residential real estate
Risk rating
Pass	16,675		76,074		112,784		45,111		18,978		44,892		23,222		926		338,662
Special Mention	—		1,672		374		—		—		1,989		204		—		4,239
Substandard	—		—		442		270		28		526		—		—		1,266
Total Residential real estate	16,675		77,746		113,600		45,381		19,006		47,407		23,426		926		344,167

Current period gross write offs	—		—		400		18		—		9		—		—		427



Commercial, financial & agricultural
Risk rating
Pass	44,380		46,610		33,124		12,322		8,662		16,143		43,051		742		205,034
Special Mention	—		622		2,136		12		—		—		700		—		3,470
Substandard	105		1,612		858		1,904		271		218		433		5		5,406
Total Commercial, financial & agricultural	44,485		48,844		36,118		14,238		8,933		16,361		44,184		747		213,910

Current period gross write offs	138		588		659		986		28		68		—		—		2,467

Consumer and other
Risk rating
Pass	53,500		30,186		2,312		857		530		1,291		456		13		89,145
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	49		—		12		1		2		—		—		—		64
Total Consumer and other	53,549		30,186		2,324		858		532		1,291		456		13		89,209

Current period gross write offs	84		392		81		1		5		41		—		—		604

Total Loans
Risk rating
Pass	267,993		285,420		517,273		262,051		107,054		262,149		88,123		3,530		1,793,593
Special Mention	850		6,381		6,798		185		2,755		9,365		1,795		1,069		29,198
Substandard	4,268		4,198		4,187		2,634		653		3,248		996		5		20,189
Total Loans	$	273,111	$	295,999	$	528,258	$	264,870	$	110,462	$	274,762	$	90,914	$	4,604	$	1,842,980

Total current period gross write offs	$	222	$	980	$	1,140	$	1,005	$	33	$	138	$	—	$	—	$	3,518

A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to review at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more are reassessed on a quarterly basis. During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due.

Loans are classified as collateral-dependent when the borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate. The Company had $2.3 million and $3.1 million in collateral-dependent loans at March 31, 2025 and December 31, 2024, respectively.

The following table presents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of March 31, 2025 and December 31, 2024:


(dollars in thousands)	30-89 Days Past Due		90 Days or More Past Due		Total Accruing Loans Past Due		Nonaccrual Loans		Current Loans		Total Loans
March 31, 2025
Construction, land & land development	$	1	$	—	$	1	$	—	$	208,871	$	208,872
Other commercial real estate	828		—		828		5,518		1,046,621		1,052,967
Total commercial real estate	829		—		829		5,518		1,255,492		1,261,839
Residential real estate	2,889		—		2,889		1,608		341,024		345,521
Commercial, financial & agricultural	1,666		—		1,666		5,327		206,362		213,355
Consumer and other	524		22		546		3		99,999		100,548
Total Loans	$	5,908	$	22	$	5,930	$	12,456	$	1,902,877	$	1,921,263

December 31, 2024
Construction, land & land development	$	544	$	—	$	544	$	—	$	204,502	$	205,046
Other commercial real estate	2,441		—		2,441		4,833		983,374		990,648
Total commercial real estate	2,985		—		2,985		4,833		1,187,876		1,195,694
Residential real estate	3,689		—		3,689		1,204		339,274		344,167
Commercial, financial & agricultural	1,348		—		1,348		4,559		208,003		213,910
Consumer and other	339		152		491		64		88,654		89,209
Total Loans	$	8,361	$	152	$	8,513	$	10,660	$	1,823,807	$	1,842,980



	March 31, 2025
(dollars in thousands)	Nonaccrual Loans with No Related ACL		Nonaccrual Loans with a Related ACL		Total Nonaccrual Loans

Construction, land & land development	$	—	$	—	$	—
Other commercial real estate	1,482		4,036		5,518
Total commercial real estate	1,482		4,036		5,518
Residential real estate	—		1,608		1,608
Commercial, financial & agricultural	—		5,327		5,327
Consumer and other	—		3		3
Total Loans	$	1,482	$	10,974	$	12,456



	December 31, 2024
(dollars in thousands)	Nonaccrual Loans with No Related ACL		Nonaccrual Loans with a Related ACL		Total Nonaccrual Loans

Construction, land & land development	$	—	$	—	$	—
Other commercial real estate	1,482		3,351		4,833
Total commercial real estate	1,482		3,351		4,833
Residential real estate	—		1,204		1,204
Commercial, financial & agricultural	—		4,559		4,559
Consumer and other	—		64		64
Total Loans	$	1,482	$	9,178	$	10,660

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. Upon the Company's determination that a modified loan, or portion of a loan, has subsequently been deemed uncollectible, the loan, or portion of the loan, is written off.


	Three months ended March 31, 2025
(dollars in thousands)	Term Extension		Payment Delay		Term Extension and Payment Delay		Total*
Construction, land & land development	$	—	$	84	$	—	$	84
Other commercial real estate	355		—		144		499
Residential real estate	5		—		—		5
Commercial, financial & agricultural	—		339		557		896
Total Loans	$	360	$	423	$	701	$	1,484
*less than 0.5% of total class of receivable

There were a total of ten loans in the above categories for the three months ended March 31, 2025. There was one construction, land & land development loan which was given a payment delay. The commercial real estate category consists of three loans, two of which were given term extensions of nine and fourteen months and one loan which was given both a payment delay and term extension of eleven months. The residential real estate loan was given a term extension of 53

There were a total of three loans in the above categories for the three months ended March 31, 2024. The commercial real estate loans consisted of two loans, each with a term extension of one year with one of these loans had also been given a payment delay. The commercial, financial & agricultural loan had a term extension of five years and was also given a payment delay.