Loans and Allowance for Credit Losses - Loans

12 Months Ended

Dec. 31, 2024

Loans and Allowance for Credit Losses - Loans

Loans and Allowance for Credit Losses - Loans

Note 4. Loans and Allowance for Credit Losses - Loans

The following table sets forth the Company's gross loans by major categories as of December 31, 2024 and 2023:

	December 31,
(dollars in thousands)	2024		2023
Loans Secured by Real Estate
Construction and land	$	8,882	$	4,636
Farmland		315		325
Single-family residential		98,993		86,887
Multi-family		5,022		5,165
Commercial		48,726		39,217
Total loans secured by real estate		161,938		136,230
Commercial and Industrial
Commercial and industrial		16,705		10,850
SBA guaranty		5,691		5,924
Total commercial and industrial loans		22,396		16,774
Consumer Loans
Consumer		2,880		2,039
Automobile		18,005		21,264
Total consumer loans		20,885		23,303
Loans, net of deferred fees and costs		205,219		176,307
Less: Allowance for credit losses		(2,839)		(2,157)
Loans, net	$	202,380	$	174,150

The Bank’s net loans totaled $202.4 million on December 31, 2024, compared to $174.2 million on December 31, 2023, an increase of $28.2 million, or 16.2%. Construction and land loans increased from $4.6 million on December 31, 2023, to $8.9 million on December 31, 2024, an increase of $4.2 million, or 91.6%. Farmland loans were $0.3 million at December 31, 2024 and December 31, 2023. Single-family residential loans increased from $86.9 million on December 31, 2023, to $99.0 million on December 31, 2024, an increase of $12.1 million, or 13.9%. Multi-family residential loans were $5.0 million on December 31, 2024, and $5.2 on December 31, 2023, a decrease of $0.1 million, or 2.8%. Commercial real estate loans increased $9.5 million, or 24.2%, to $48.7 million at December 31, 2024, compared to $39.2 million on December 31, 2023. Commercial and industrial loans increased by $5.9 million, or 54.0%, to $16.7 million on December 31, 2024, compared to $10.9 million on December 31, 2023. SBA guaranty loans were $5.7 million on December 31, 2024, a decrease of $0.2 million, or 3.9%, compared to $5.9 million at December 31, 2023. Consumer loans increased by $0.8 million, or 41.3% to $2.9 million on December 31, 2024, compared to $2.0 million on December 31, 2023. Automobile loans decreased from $21.3 million on December 31, 2023, to $18.0 million on December 31, 2024, a decrease of $3.3 million or 15.3%.

The Company currently manages its credit products and the respective exposure to credit losses by specific portfolio segments and classes, which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses. The Company believes each portfolio segment has unique risk characteristics. The Company's loans held for investment is divided into three portfolio segments: loans secured by real estate, commercial and industrial loans, and consumer loans. Each of these segments is further divided into loan classes for purposes of estimating the allowance for credit losses. The Bank has an automotive indirect lending program where loans, collateralized by vehicles, made by car dealers to consumers are acquired by the Bank. The Bank’s indirect loan group included $18.0 million and $21.3 million of such loans at December 31, 2024 and 2023, respectively.

The Bank makes loans to customers located primarily in Anne Arundel County and surrounding areas of Central Maryland. Although the loan portfolio is diversified, its performance will be influenced by the economy of the region.

In June of 2024, the Bank purchased a portfolio of home equity loans from a nationally recognized broker. The loans were originated by a community bank with $825 million in total assets located in Camden, New Jersey. The portfolio was comprised of 156 revolving home equity notes with a total commitment of $21.6 million of which $14.4 million was funded at the time of our purchase. The loans are ten-year draw and 20-year maturity products. The terms and credit quality of the loans are similar to the home equity loans presently held by the Bank. The loans are geographically distributed between eastern Pennsylvania and central New Jersey. Prior to purchasing the notes, the Bank performed credit risk due diligence on the portfolio and qualitatively assessed compliance, documentation, underwriting and repayment risks. The broker conducted their customary file review and their findings were substantially similar to the Bank’s independent file review. There were no loans included in the acquired portfolio that were classified as credit deteriorated. As of December 31, 2024 there were 138 loans remaining in the purchased portfolio with an aggregate total commitment of $19.2 million of which $12.3 million was outstanding and one loan that was 30-89 days past due with a balance of $744,000.

Included in loans are loans due from directors, executive officers and other related parties of $2.6 million and $0.2 million, at December 31, 2024 and December, and 2023, respectively. These loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with unrelated borrowers. The Board of Directors approves loans to directors, executive officers and other related parties to confirm that collateral requirements, terms and rates are comparable to other borrowers and are in compliance with underwriting policies. The following presents the activity in amount due from directors and other related parties for the years ended December 31, 2024 and 2023.

	December 31,
(dollars in thousands)	2024		2023
Balance at beginning of year	$	150	$	—
Additions		2,600		150
Repayments		(29)		—
Reduction due to retirement		(150)		—
Balance at end of year	$	2,571	$	150

Allowance for Credit Losses

Credit Risk and Allowance for Credit Losses - Loans. Credit risk is the risk of loss arising from the inability of a borrower to meet his or her obligations and entails both general risks, which are inherent in the process of lending, and risks specific to individual borrowers. Credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry, or collateral type. Residential mortgage and home equity loans and lines generally have the lowest credit loss experience. Loans secured by personal property, such as auto loans, generally experience medium credit losses. Unsecured loan products, such as personal revolving credit, have the highest credit loss experience and for that reason, the Bank has chosen not to engage in a significant amount of this type of lending. Credit risk in commercial lending can vary significantly, as losses as a percentage of outstanding loans can shift widely during economic cycles and are particularly sensitive to changing economic conditions. Generally, improving economic conditions result in improved operating results on the part of commercial customers, enhancing their ability to meet their particular debt service requirements. Improvements, if any, in operating cash flows can be offset by the impact of rising interest rates that may occur during improved economic times. Inconsistent economic conditions may have an adverse effect on the operating results of commercial customers, reducing their ability to meet debt service obligations.

On January 1, 2021, the Company early adopted ASU 2016-13, Financial Instruments - Credit Losses (“ASC 326”) which replaces the “incurred loss approach” for estimating credit losses with an expected loss methodology. The incurred loss model delayed the recognition of credit losses until it was probable that a loss had occurred, while the CECL model requires the immediate recognition of expected credit losses over the contractual term for financial instruments that fall within the scope of CECL at the date of origination or purchase of the financial instrument. The CECL model, which is applicable to the measurement of credit losses on financial assets measured at amortized cost and certain off-balance sheet credit exposures, affects the Company’s estimates of the allowance for credit losses for our loan portfolio and the reserve for our off-balance sheet credit exposures related to loan commitments. The allowance for

credit losses - loans is established through a provision for credit losses charged to expense. Loans are charged against the allowance for credit losses - loans when management believes that the collectability of the principal is unlikely. The allowance, based on all available information from internal and external sources, relevant to assessing the collectability of loans over their contractual terms, adjusted for expected prepayments when appropriate, is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectible. The evaluations are performed for each class of loans and take into consideration factors such as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, value of collateral securing the loans and current economic conditions and trends that may affect the borrowers’ ability to pay. For example, delinquencies in unsecured loans and indirect automobile installment loans will be reserved for at significantly higher ratios than loans secured by real estate. Finally, the Company considers forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Based on that analysis, the Bank deems its allowance for credit losses - loans in proportion to the total nonaccrual loans and past due loans to be sufficient.

The following table presents the total allowance by loan segment:

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 2024	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Balance, beginning of year	$	31	$	18	$	1,290	$	96	$	190	$	304	$	21	$	30	$	177	$	2,157
Charge-offs		—		—		—		—		—		—		(299)		(18)		(67)		(384)
Recoveries		—		—		—		—		—		—		—		133		89		222
Provision (release) for credit losses		9		(2)		239		128		317		(32)		316		(100)		(31)		844
Balance, end of year	$	40	$	16	$	1,529	$	224	$	507	$	272	$	38	$	45	$	168	$	2,839
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	18	$	—	$	—	$	121	$	—	$	—	$	—	$	139
Related loan balance		—		—		26		—		—		773		—		—		—		799
Collectively evaluated for impairment:
Balance in allowance	$	40	$	16	$	1,511	$	224	$	507	$	151	$	38	$	45	$	168	$	2,700
Related loan balance		8,882		315		98,967		5,022		48,726		15,932		5,691		2,880		18,005		204,420

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 2023	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Balance, beginning of year	$	44	$	20	$	1,230	$	103	$	221	$	174	$	22	$	23	$	325	$	2,162
Charge-offs		—		—		—		—		—		—		—		(79)		(124)		(203)
Recoveries		—		—		—		—		—		—		—		1		101		102
(Release) provision for credit losses		(13)		(2)		60		(7)		(31)		130		(1)		85		(125)		96
Balance, end of year	$	31	$	18	$	1,290	$	96	$	190	$	304	$	21	$	30	$	177	$	2,157
Individually evaluated for impairment:
Balance in allowance	$	—	$	—	$	21	$	—	$	—	$	179	$	—	$	—	$	—	$	200
Related loan balance		—		—		30		—		—		299		—		—		—		329
Collectively evaluated for impairment:
Balance in allowance	$	31	$	18	$	1,269	$	96	$	190	$	125	$	21	$	30	$	177	$	1,957
Related loan balance		4,636		325		86,857		5,165		39,217		10,551		5,924		2,039		21,264		175,978

Management believes the allowance for credit losses is at an appropriate level to absorb inherent probable losses in the portfolio.

During the 12 months ended December 31, 2024, loans to 13 borrowers and related entities totaling approximately $384,000 were determined to be uncollectible and were charged off. During the 12 months ended December 31, 2023, loans to 12 borrowers and related entities totaling approximately $203,000 were determined to be uncollectible and were charged off.

The following table provides gross charge-offs for the year 2024 by the year of origination:

	Gross Charge-offs
December 31, 2024	Term Loans by Origination Year												Revolving
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Loans		Total
Commercial and Industrial Loans	$	—	$	—	$	—	$	299	$	—	$	—	$	—	$	299
Consumer Loans
Consumer		—	$	—	$	13	$	—	$	—	$	5	$	—		18
Automobile		—		—		—		—		51		16		—		67
Total consumer		—		—		13		—		51		21		—		85
Total gross charge-offs this period	$	—	$	—	$	13	$	299	$	51	$	21	$	—	$	384

The following table rolls forward the Company’s activity for nonaccrual loans during the years 2024 and 2023:

	Loans Secured By Real Estate						Commercial and Industrial Loans				Consumer Loans
	Single-family						Commercial
	Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile			Total
(dollars in thousands)
December 31, 2022	$	104	$	—	$	—	$	299	$	—	$	—	$	85	$	488
Transfers into nonaccrual		307		—		—		—		—		—		175		482
Loans paid down/payoffs		(266)	$	—		—		—	$	—		—		(35)		(301)
Loans returned to accrual status		—		—		—		—		—		—		(18)		(18)
Loans charged off		—		—		—						—		(124)		(124)
December 31, 2023	$	145	$	—	$	—	$	299	$	—	$	—	$	83	$	527
Transfers into nonaccrual		52		—		140		—		—		—		93		285
Loans paid down/payoffs		(48)	$	—		(16)		—		—		—		(35)		(99)
Loans returned to accrual status		—		—		—		—		—		—		(1)		(1)
Loans charged off		—		—		—		(299)		—		—		(53)		(352)
December 31, 2024	$	149	$	—	$	124	$	—	$	—	$	—	$	87	$	360

Credit Quality Information

In addition to monitoring the performance status of the loan portfolio, the Company utilizes a risk rating scale (1-8) to evaluate loan asset quality for all loans. Loans that are rated 1-4 are classified as “pass” credits. For the pass rated loans, management believes there is a low risk of loss related to these loans and as necessary, credit may be strengthened through improved borrower performance and/or additional collateral. Loans rated a 5 (Special Mention) are pass credits, but are loans that have been identified that warrant additional attention and monitoring and represent “criticized” assets. Loans rated a 6 (Substandard) or higher are considered “criticized” loans and represent an increased level of credit risk. The use and application of these risk ratings by the Bank conform to the Bank's policy and regulatory definitions.

The Bank’s internal risk ratings are as follows:

1 – 4 (Pass) - Pass credits are loans in grades “superior” through “acceptable”. These are at least considered to be credits with acceptable risks and would be granted in the normal course of lending operations.

5 (Special Mention) - Special mention credits have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credits or in the Bank’s credit position at some future date. If weaknesses cannot be identified, classifying as special mention is not appropriate. Special mention credits are not adversely classified and do not expose the Bank to sufficient risk to warrant an adverse classification. No apparent loss of principal or interest is expected.

6 (Substandard) - Substandard credits are inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged. Financial statements normally reveal some or all of the following: poor

trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Credits so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

7 (Doubtful) - A doubtful credit has all the weaknesses inherent in a substandard asset with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. Doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded Substandard.

In the normal course of loan portfolio management, loan originators are responsible for continuous assessment of credit risk arising from the individual borrowers within their portfolio and assigning appropriate risk ratings. Credit Administration is responsible for ensuring the integrity and operation of the risk rating system and maintenance of the watch list. The Bank contracts with an independent third-party loan review firm that reviews and validates the internal credit risk program on an annual basis. Results of these reviews are presented to the Audit Committee for approval and then to management for implementation. The loan review process complements and reinforces the risk identification and assessment decisions made by the lenders and credit personnel as well as the Bank’s policies and procedures.

The following table provides information with respect to the Company's risk ratings by loan portfolio segment:

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 2024	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	8,882	$	315	$	98,844	$	5,022	$	47,829	$	16,705	$	5,219	$	2,880	$	17,918	$	203,614
Special mention		—		—		—		—		—		—		472		—		—		472
Substandard		—		—		149		—		897		—		—		—		87		1,133
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	8,882	$	315	$	98,993	$	5,022	$	48,726	$	16,705	$	5,691	$	2,880	$	18,005	$	205,219
Nonaccrual	$	—	$	—	$	149	$	—	$	124	$	—	$	—	$	—	$	87	$	360
Restructured loans to borrowers with financial difficulty	$	—	$	—	$	26	$	—	$	—	$	—	$	—	$	—	$	—	$	26
Number restructured loans to borrowers with financial difficulty		—		—		1		—		—		—		—		—		—		1
Non-performing restructured loans to borrowers with financial difficulty	$	—	$	—	$	26	$	—	$	—	$	—	$	—	$	—	$	—	$	26
Number of non-performing restructured loan accounts		—		—		1		—		—		—		—		—		—		1

	Loans Secured By Real Estate										Commercial and Industrial Loans				Consumer Loans
December 31, 2023	Construction				Single-family						Commercial
(dollars in thousands)	and Land		Farmland		Residential		Multi-family		Commercial		and Industrial		SBA Guaranty		Consumer		Automobile		Total
Pass	$	4,636	$	325	$	86,743	$	5,165	$	39,217	$	10,551	$	5,924	$	2,039	$	21,110	$	175,709
Special mention		—		—		—		—		—		—		—		—		—		—
Substandard		—		—		145		—		—		299		—		—		154		598
Doubtful		—		—		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—		—		—
	$	4,636	$	325	$	86,887	$	5,165	$	39,217	$	10,850	$	5,924	$	2,039	$	21,264	$	176,307
Nonaccrual	$	—	$	—	$	145	$	—	$	—	$	299	$	—	$	—	$	83	$	527
Restructured loans to borrowers with financial difficulty	$	—	$	—	$	30	$	—	$	—	$	—	$	—	$	—	$	—	$	30
Number restructured loans to borrowers with financial difficulty		—		—		1		—		—		—		—		—		—		1
Non-performing restructured loans to borrowers with financial difficulty	$	—	$	—	$	30	$	—	$	—	$	—	$	—	$	—	$	—	$	30
Number of non-performing restructured loan accounts		—		—		1		—		—		—		—		—		—		1

The following tables provide information about credit quality indicators by the year of origination at December 31, 2024 and 2023:

	Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Total
(dollars in thousands)
Loans Secured By Real Estate:
Pass	$	37,899	$	14,919	$	13,565	$	14,959	$	8,287	$	71,263	$	160,892
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		773		773
Nonaccrual		—		—		—		—		—		273		273
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	37,899	$	14,919	$	13,565	$	14,959	$	8,287	$	72,309	$	161,938
Commercial and Industrial Loans:
Pass	$	5,734	$	3,493	$	903	$	301	$	3,434	$	8,059	$	21,924
Special mention		—		—		—		—		—		472		472
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	5,734	$	3,493	$	903	$	301	$	3,434	$	8,531	$	22,396
Consumer Loans:
Pass	$	7,917	$	1,786	$	3,128	$	3,174	$	1,721	$	3,072	$	20,798
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		—		40		34		12		1		87
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	7,917	$	1,786	$	3,168	$	3,208	$	1,733	$	3,073	$	20,885

	Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Total
(dollars in thousands)
Loans Secured By Real Estate:
Pass	$	15,316	$	12,507	$	16,675	$	9,739	$	9,457	$	72,391	$	136,085
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		145		145
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	15,316	$	12,507	$	16,675	$	9,739	$	9,457	$	72,536	$	136,230
Commercial and Industrial Loans:
Pass	$	3,515	$	1,099	$	153	$	3,834	$	711	$	7,163	$	16,475
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		—		299		—		—		—		299
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	3,515	$	1,099	$	452	$	3,834	$	711	$	7,163	$	16,774
Consumer Loans:
Pass	$	2,140	$	4,598	$	5,697	$	3,364	$	3,481	$	3,940	$	23,220
Special mention		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—
Nonaccrual		—		27		40		9		—		7		83
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
	$	2,140	$	4,625	$	5,737	$	3,373	$	3,481	$	3,947	$	23,303

Asset Quality

The following table presents the loan portfolio segments summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2024 and 2023:

					90 Days or
			30-89 Days		More and
December 31, 2024	Current		Past Due		Still Accruing		Nonaccrual		Total
(dollars in thousands)
Loans Secured by Real Estate
Construction and land	$	8,882	$	—	$	—	$	—	$	8,882
Farmland		315		—		—		—		315
Single-family residential		97,742		1,102		—		149		98,993
Multi-family		5,022		—		—		—		5,022
Commercial		48,602		—		—		124		48,726
Total loans secured by real estate		160,563		1,102		—		273		161,938
Commercial and Industrial
Commercial and industrial		16,233		472		—		—		16,705
SBA guaranty		5,691		—		—		—		5,691
Total commercial and industrial loans		21,924		472		—		—		22,396
Consumer Loans
Consumer		2,879		1		—		—		2,880
Automobile		17,613		305		—		87		18,005
Total consumer loans		20,492		306		—		87		20,885
	$	202,979	$	1,880	$	—	$	360	$	205,219

					90 Days or
			30-89 Days		More and
December 31, 2023	Current		Past Due		Still Accruing		Nonaccrual		Total
(dollars in thousands)
Loans Secured by Real Estate
Construction and land	$	4,636	$	—	$	—	$	—	$	4,636
Farmland		325		—		—		—		325
Single-family residential		86,233		509		—		145		86,887
Multi-family		5,165		—		—		—		5,165
Commercial		39,217		—		—		—		39,217
Total loans secured by real estate		135,576		509		—		145		136,230
Commercial and Industrial
Commercial and industrial		10,551		—		—		299		10,850
SBA guaranty		5,924		—		—		—		5,924
Total commercial and industrial loans		16,475		—		—		299		16,774
Consumer Loans
Consumer		1,981		58		—		—		2,039
Automobile		20,794		387		—		83		21,264
Total consumer loans		22,775		445		—		83		23,303
	$	174,826	$	954	$	—	$	527	$	176,307

Loans on which the accrual of interest has been discontinued totaled $0.4 million at December 31, 2024 and $0.5 million at December 31, 2023. The Bank recognizes interest income on non-accrual loans using a cash basis method for the time they are on non-accrual.  Interest income that was recognized on these non-accrual loans totaled $30,000 and $15,000 for the years ended December 31, 2024 and 2023, respectively. Loans past due 90 days or more and still accruing interest totaled $0 at December 31, 2024 and 2023. Management believes these particular loans are well secured and in the process of full collection of all amounts owed.

Nonaccrual loans with specific reserves at December 31, 2024 are comprised of:

Single-family residential – One loan in the amount of $26,000 with $18,000 of specific reserve established for the loan.

Commercial real estate – One loan in the amount of $773,000 with specific reserve of $121,000 established for the loan.

Impaired Loans

The following table presents information with respect to impaired loans. Management determined the specific reserve in the allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less estimated selling costs is used to determine the specific allowance recorded.

			Unpaid		Interest				Average
December 31, 2024	Recorded		Principal		Income		Specific		Recorded
(dollars in thousands)	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	—	$	—
Farmland		—		—		—		—		—
Single-family residential		8		26		4		18		48
Multi-family		—		—		—		—		—
Commercial		652		773		—		121		2,270
Total loans secured by real estate		660		799		4		139		2,318
Commercial and Industrial
Commercial and industrial		—		—		—		—		—
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	660	$	799	$	4	$	139	$	2,318
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		123		123		12		n/a		91
Multi-family		—		—		—		n/a		—
Commercial		125		125		8		n/a		138
Total loans secured by real estate		248		248		20		—		229
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		86		86		6		n/a		102
Total consumer loans		86		86		6		n/a		102
Total impaired loans with no specific reserve	$	334	$	334	$	26	$	—	$	331

			Unpaid		Interest				Average
December 31, 2023	Recorded		Principal		Income		Specific		Recorded
(dollars in thousands)	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	—	$	—
Farmland		—		—		—		—		—
Single-family residential		9		30		4		21		48
Multi-family		—		—		—		—		—
Commercial		—		—		—		—		—
Total loans secured by real estate		9		30		4		21		48
Commercial and Industrial
Commercial and industrial		120		299		—		179		499
SBA guaranty		—		—		—		—		—
Total commercial and industrial loans		120		299		—		179		499
Consumer Loans
Consumer		—		—		—		—		—
Automobile		—		—		—		—		—
Total consumer loans		—		—		—		—		—
Total impaired loans with specific reserves	$	129	$	329	$	4	$	200	$	547
Impaired loans with no specific reserve:
Loans Secured by Real Estate
Construction and land	$	—	$	—	$	—	$	n/a	$	—
Farmland		—		—		—		n/a		—
Single-family residential		115		115		5		n/a		130
Multi-family		—		—		—		n/a		—
Commercial		—		—		—		n/a		—
Total loans secured by real estate		115		115		5		—		130
Commercial and Industrial
Commercial and industrial		—		—		—		n/a		—
SBA guaranty		—		—		—		n/a		—
Total commercial and industrial loans		—		—		—		—		—
Consumer Loans
Consumer		—		—		—		n/a		—
Automobile		154		154		6		n/a		104
Total consumer loans		154		154		6		n/a		104
Total impaired loans with no specific reserve	$	269	$	269	$	11	$	—	$	234