XML 34 R18.htm IDEA: XBRL DOCUMENT v3.25.0.1
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2024
Text Block [Abstract]  
Allowance for Credit Losses

NOTE 5 - ALLOWANCE FOR CREDIT LOSSES

The following tables present, by portfolio segment, the changes in the allowance for credit losses, the ending allocation of the allowance for losses and the loan balances outstanding for the years ended December 31, 2024, 2023 and 2022.

Allowance for credit losses:

 

December 31, 2024

 

Beginning
balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision
(Credit)

 

 

Ending
Balance

 

Commercial & Agriculture

 

$

7,587

 

 

$

(2,197

)

 

$

255

 

 

$

941

 

 

$

6,586

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

4,723

 

 

 

—

 

 

 

—

 

 

 

(396

)

 

 

4,327

 

Non-Owner Occupied

 

 

12,056

 

 

 

(672

)

 

 

18

 

 

 

2

 

 

 

11,404

 

Residential Real Estate

 

 

8,489

 

 

 

(83

)

 

 

197

 

 

 

3,263

 

 

 

11,866

 

Real Estate Construction

 

 

3,388

 

 

 

—

 

 

 

12

 

 

 

308

 

 

 

3,708

 

Farm Real Estate

 

 

260

 

 

 

—

 

 

 

—

 

 

 

(34

)

 

 

226

 

Lease Financing Receivable

 

 

297

 

 

 

(881

)

 

 

20

 

 

 

1,925

 

 

 

1,361

 

Consumer and Other

 

 

341

 

 

 

(82

)

 

 

37

 

 

 

(105

)

 

 

191

 

Unallocated

 

 

19

 

 

 

—

 

 

 

—

 

 

 

(19

)

 

 

—

 

Total

 

$

37,160

 

 

$

(3,915

)

 

$

539

 

 

$

5,885

 

 

$

39,669

 

 

For the year ended December 31, 2024, the Company provided $5,885 to the allowance for credit losses, as compared to a provision of $4,435 for the year ended December 31, 2023. The increase in the provision was to support strong organic loan growth in the portfolio.

For the year ended December 31, 2024, the allowance for Commercial & Agriculture loans decreased due to an increase in charge-offs, mainly due to two commercial relationships. The allowance for Commercial Real Estate – Owner Occupied loans decreased due to a decrease in loan balances. The allowance for Commercial Real Estate – Non-Owner Occupied loans decreased due to an increase in charge-offs on two commercial relationships. The allowance for Residential Real Estate loans increased due to an increase in loan balances and a decrease in prepayment speeds from 13.94% to 7.30%. The allowance for Lease Financing Receivable increased as a result of an increase in charge-offs. The allowance for Consumer and Other loans decreased due to a decrease in loan balances.

Allowance for credit losses:

 

December 31, 2023

 

Beginning
balance

 

 

CECL Adoption Day 1 Impact

 

 

Impact of Adopting ASC 326 - PCD Loans 1

 

Charge-offs

 

 

Recoveries

 

 

Provision
(Credit)

 

 

Ending
Balance

 

Commercial & Agriculture

 

$

3,011

 

 

$

429

 

 

$

—

 

$

(1,300

)

 

$

177

 

 

$

5,270

 

 

$

7,587

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

4,565

 

 

 

1,075

 

 

 

19

 

 

—

 

 

 

15

 

 

 

(951

)

 

 

4,723

 

Non-Owner Occupied

 

 

14,138

 

 

 

(2,847

)

 

 

—

 

 

—

 

 

 

46

 

 

 

719

 

 

 

12,056

 

Residential Real Estate

 

 

3,145

 

 

 

2,762

 

 

 

166

 

 

(17

)

 

 

134

 

 

 

2,299

 

 

 

8,489

 

Real Estate Construction

 

 

2,293

 

 

 

1,502

 

 

 

—

 

 

—

 

 

 

37

 

 

 

(444

)

 

 

3,388

 

Farm Real Estate

 

 

291

 

 

 

(28

)

 

 

—

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

260

 

Lease Financing Receivable

 

 

429

 

 

 

1,743

 

 

 

635

 

 

—

 

 

 

—

 

 

 

(2,510

)

 

 

297

 

Consumer and Other

 

 

98

 

 

 

201

 

 

 

77

 

 

(114

)

 

 

43

 

 

 

36

 

 

 

341

 

Unallocated

 

 

541

 

 

 

(541

)

 

 

—

 

 

—

 

 

 

—

 

 

 

19

 

 

 

19

 

Total

 

$

28,511

 

 

$

4,296

 

 

$

897

 

$

(1,431

)

 

$

452

 

 

$

4,435

 

 

$

37,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Day 1 impact of $1,668 of adopting ASC 326-PCD loans was netted by changes in estimates of $771

 

 

A one-time CECL adoption adjustment of $4,296 along with a $897 adjustment related to ASC 326 adoption was incurred in the first quarter of 2023. For the year ended December 31, 2023, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in loan balances, accompanied by an increase in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, partially offset by a decrease in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans decreased due to a decrease in general reserves required as a result of an increase in loan balances, offset by a decrease in loss rates and classified loan balances. This was represented as a decrease in the provision. The allowance for Residential Real Estate loans increased due to an increase in general reserves required for this type as a result of increased loan balances. The result was represented by an increase in the provision. The allowance for Consumer and Other loans decreased due to a decrease in loan balances. This was represented as a decrease in the provision.

Allowance for credit losses:

 

December 31, 2022

 

Beginning
balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision
(Credit)

 

 

Ending
Balance

 

Commercial & Agriculture

 

$

2,600

 

 

$

(22

)

 

$

24

 

 

$

409

 

 

$

3,011

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

4,464

 

 

 

—

 

 

 

42

 

 

 

59

 

 

 

4,565

 

Non-Owner Occupied

 

 

13,860

 

 

 

—

 

 

 

74

 

 

 

204

 

 

 

14,138

 

Residential Real Estate

 

 

2,597

 

 

 

(97

)

 

 

163

 

 

 

482

 

 

 

3,145

 

Real Estate Construction

 

 

1,810

 

 

 

—

 

 

 

4

 

 

 

479

 

 

 

2,293

 

Farm Real Estate

 

 

287

 

 

 

—

 

 

 

6

 

 

 

(2

)

 

 

291

 

Lease Financing Receivable

 

 

—

 

 

 

(23

)

 

 

—

 

 

 

452

 

 

 

429

 

Consumer and Other

 

 

176

 

 

 

(80

)

 

 

27

 

 

 

(25

)

 

 

98

 

Unallocated

 

 

847

 

 

 

—

 

 

 

—

 

 

 

(306

)

 

 

541

 

Total

 

$

26,641

 

 

$

(222

)

 

$

340

 

 

$

1,752

 

 

$

28,511

 

 

For the year ended December 31, 2022, the Company provided $1,752 to the allowance for credit losses, as compared to a provision of $830 for the year ended December 31, 2021. The increase in the provision was to support strong organic loan growth in the portfolio. Of this increase, $452,000 was provided to cover lease production from our CLF subsidiary since acquisition.

For the year ended December 31, 2022, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in loan balances, accompanied by an increase in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, partially offset by a decrease in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, partially offset by a decrease in loss rates and classified loan balances. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in general reserves required for this type as a result of increased loan balances. The result was represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to an increase in loan balances. This was represented as an increase in the provision. The allowance for Consumer and Other loans decreased due to a decrease in loan balances. This was represented as a decrease in the provision. Management determined that the unallocated amount was appropriate and within the relevant range for the allowance that was reflective of the risk in the portfolio at December 31, 2022.

 

The following tables represent credit exposures by internally assigned risk ratings for the periods ended December 31, 2024 and 2023. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company's internal credit risk grading system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

•
Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.
•
Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.
•
Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Civista will sustain some loss if the deficiencies are not corrected.
•
Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.
•
Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

 

Homogeneous loans, generally Residential Real Estate, Real Estate Construction, and Consumer and Other loans, are not risk-graded, except when collateral is used for a business purpose. These loans are monitored based on performance, with performing loans included as Pass and nonperforming loans included in Substandard.

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

 

 

December 31, 2024

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Loans

 

 

Total

 

Commercial & Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

74,397

 

 

$

55,540

 

 

$

37,078

 

 

$

33,164

 

 

$

7,477

 

 

$

13,449

 

 

$

86,804

 

 

$

307,909

 

Special Mention

 

 

255

 

 

 

1,225

 

 

 

511

 

 

 

32

 

 

 

1,286

 

 

 

—

 

 

 

4,173

 

 

 

7,482

 

Substandard

 

 

5,629

 

 

 

1,942

 

 

 

413

 

 

 

89

 

 

 

3

 

 

 

332

 

 

 

3,004

 

 

 

11,412

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,685

 

 

 

1,685

 

Total Commercial & Agriculture

 

$

80,281

 

 

$

58,707

 

 

$

38,002

 

 

$

33,285

 

 

$

8,766

 

 

$

13,781

 

 

$

95,666

 

 

$

328,488

 

Commercial & Agriculture:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

1,520

 

 

$

339

 

 

$

204

 

 

$

53

 

 

$

48

 

 

$

33

 

 

$

—

 

 

$

2,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

26,677

 

 

$

40,344

 

 

$

72,901

 

 

$

62,663

 

 

$

52,478

 

 

$

97,293

 

 

$

8,358

 

 

$

360,714

 

Special Mention

 

 

—

 

 

 

3,525

 

 

 

4,987

 

 

 

855

 

 

 

383

 

 

 

302

 

 

 

178

 

 

 

10,230

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,189

 

 

 

234

 

 

 

3,423

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial Real Estate - Owner Occupied

 

$

26,677

 

 

$

43,869

 

 

$

77,888

 

 

$

63,518

 

 

$

52,861

 

 

$

100,784

 

 

$

8,770

 

 

$

374,367

 

Commercial Real Estate - Owner Occupied:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Non-Owner Occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

59,635

 

 

$

227,608

 

 

$

299,079

 

 

$

170,534

 

 

$

121,313

 

 

$

280,870

 

 

$

29,219

 

 

$

1,188,258

 

Special Mention

 

 

—

 

 

 

—

 

 

 

7,166

 

 

 

—

 

 

 

—

 

 

 

10,533

 

 

 

—

 

 

 

17,699

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,000

 

 

 

—

 

 

 

12,034

 

 

 

—

 

 

 

20,034

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial Real Estate - Non-Owner Occupied

 

$

59,635

 

 

$

227,608

 

 

$

306,245

 

 

$

178,534

 

 

$

121,313

 

 

$

303,437

 

 

$

29,219

 

 

$

1,225,991

 

Commercial Real Estate - Non-Owner Occupied:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

672

 

 

$

—

 

 

$

672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

97,552

 

 

$

127,090

 

 

$

113,877

 

 

$

90,198

 

 

$

64,528

 

 

$

91,785

 

 

$

168,840

 

 

$

753,870

 

Special Mention

 

 

71

 

 

 

286

 

 

 

—

 

 

 

576

 

 

 

92

 

 

 

481

 

 

 

426

 

 

 

1,932

 

Substandard

 

 

—

 

 

 

316

 

 

 

967

 

 

 

859

 

 

 

675

 

 

 

2,655

 

 

 

1,180

 

 

 

6,652

 

Doubtful

 

 

1,115

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

300

 

 

 

1,415

 

Total Residential Real Estate

 

$

98,738

 

 

$

127,692

 

 

$

114,844

 

 

$

91,633

 

 

$

65,295

 

 

$

94,921

 

 

$

170,746

 

 

$

763,869

 

Residential Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

2

 

 

$

—

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

78

 

 

$

—

 

 

$

83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

 

 

December 31, 2024

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Loans

 

 

Total

 

Real Estate Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

90,417

 

 

$

133,695

 

 

$

52,564

 

 

$

10,348

 

 

$

6,841

 

 

$

2,369

 

 

$

9,449

 

 

$

305,683

 

Special Mention

 

 

154

 

 

 

—

 

 

 

—

 

 

 

155

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

309

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate Construction

 

$

90,571

 

 

$

133,695

 

 

$

52,564

 

 

$

10,503

 

 

$

6,841

 

 

$

2,369

 

 

$

9,449

 

 

$

305,992

 

Real Estate Construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Farm Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

571

 

 

$

2,125

 

 

$

495

 

 

$

2,099

 

 

$

4,122

 

 

$

11,525

 

 

$

1,490

 

 

$

22,427

 

Special Mention

 

 

—

 

 

 

—

 

 

 

388

 

 

 

—

 

 

 

—

 

 

 

158

 

 

 

62

 

 

 

608

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Farm Real Estate

 

$

571

 

 

$

2,125

 

 

$

883

 

 

$

2,099

 

 

$

4,122

 

 

$

11,683

 

 

$

1,552

 

 

$

23,035

 

Farm Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

18,783

 

 

$

16,516

 

 

$

6,955

 

 

$

1,563

 

 

$

426

 

 

$

65

 

 

$

—

 

 

$

44,308

 

Special Mention

 

 

1,107

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,107

 

Substandard

 

 

—

 

 

 

466

 

 

 

1,000

 

 

 

—

 

 

 

19

 

 

 

—

 

 

 

—

 

 

 

1,485

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Total Lease Financing Receivables

 

$

19,890

 

 

$

16,982

 

 

$

7,955

 

 

$

1,563

 

 

$

445

 

 

$

65

 

 

$

—

 

 

$

46,900

 

Lease Financing Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

199

 

 

$

607

 

 

$

12

 

 

$

63

 

 

$

—

 

 

$

—

 

 

$

881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

2,521

 

 

$

3,717

 

 

$

2,329

 

 

$

1,787

 

 

$

677

 

 

$

206

 

 

$

1,339

 

 

$

12,576

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

3

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Consumer and Other

 

$

2,521

 

 

$

3,720

 

 

$

2,329

 

 

$

1,796

 

 

$

677

 

 

$

206

 

 

$

1,339

 

 

$

12,588

 

Consumer and Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

25

 

 

$

7

 

 

$

21

 

 

$

5

 

 

$

6

 

 

$

18

 

 

$

—

 

 

$

82

 

Total Loans

 

$

378,884

 

 

$

614,398

 

 

$

600,710

 

 

$

382,931

 

 

$

260,320

 

 

$

527,246

 

 

$

316,741

 

 

$

3,081,230

 

Total Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

1,547

 

 

$

545

 

 

$

832

 

 

$

73

 

 

$

117

 

 

$

801

 

 

$

—

 

 

$

3,915

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

 

 

December 31, 2023

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Total

 

Commercial & Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

56,359

 

 

$

64,250

 

 

$

52,258

 

 

$

17,622

 

 

$

9,516

 

 

$

14,088

 

 

$

82,982

 

 

$

297,075

 

Special Mention

 

 

774

 

 

 

—

 

 

 

287

 

 

 

1,690

 

 

 

—

 

 

 

106

 

 

 

169

 

 

 

3,026

 

Substandard

 

 

396

 

 

 

86

 

 

 

67

 

 

 

131

 

 

 

271

 

 

 

73

 

 

 

3,668

 

 

 

4,692

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial & Agriculture

 

$

57,529

 

 

$

64,336

 

 

$

52,612

 

 

$

19,443

 

 

$

9,787

 

 

$

14,267

 

 

$

86,819

 

 

$

304,793

 

Commercial & Agriculture:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

673

 

 

$

532

 

 

$

—

 

 

$

—

 

 

$

95

 

 

$

—

 

 

$

1,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

36,030

 

 

$

82,502

 

 

$

67,904

 

 

$

56,069

 

 

$

29,784

 

 

$

92,750

 

 

$

5,844

 

 

$

370,883

 

Special Mention

 

 

526

 

 

 

217

 

 

 

739

 

 

 

517

 

 

 

-

 

 

 

188

 

 

 

—

 

 

 

2,187

 

Substandard

 

 

—

 

 

 

231

 

 

 

—

 

 

 

—

 

 

 

3,098

 

 

 

922

 

 

 

—

 

 

 

4,251

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial Real Estate - Owner Occupied

 

$

36,556

 

 

$

82,950

 

 

$

68,643

 

 

$

56,586

 

 

$

32,882

 

 

$

93,860

 

 

$

5,844

 

 

$

377,321

 

Commercial Real Estate - Owner Occupied:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Non-Owner Occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

183,439

 

 

$

269,334

 

 

$

198,832

 

 

$

136,031

 

 

$

120,659

 

 

$

206,267

 

 

$

23,016

 

 

$

1,137,578

 

Special Mention

 

 

—

 

 

 

5,774

 

 

 

6,171

 

 

 

—

 

 

 

—

 

 

 

8,688

 

 

 

277

 

 

 

20,910

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

122

 

 

 

3,284

 

 

 

—

 

 

 

3,406

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial Real Estate - Non-Owner Occupied

 

$

183,439

 

 

$

275,108

 

 

$

205,003

 

 

$

136,031

 

 

$

120,781

 

 

$

218,239

 

 

$

23,293

 

 

$

1,161,894

 

Commercial Real Estate - Non-Owner Occupied:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

90,770

 

 

$

124,695

 

 

$

97,661

 

 

$

71,379

 

 

$

33,534

 

 

$

78,894

 

 

$

157,083

 

 

$

654,016

 

Special Mention

 

 

—

 

 

 

—

 

 

 

221

 

 

 

97

 

 

 

—

 

 

 

245

 

 

 

—

 

 

 

563

 

Substandard

 

 

186

 

 

 

342

 

 

 

684

 

 

 

82

 

 

 

582

 

 

 

2,063

 

 

 

1,323

 

 

 

5,262

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Residential Real Estate

 

$

90,956

 

 

$

125,037

 

 

$

98,566

 

 

$

71,558

 

 

$

34,116

 

 

$

81,202

 

 

$

158,406

 

 

$

659,841

 

Residential Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

6

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

 

$

17

 

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving

 

 

 

 

December 31, 2023

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Loans

 

 

Total

 

Real Estate Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

108,606

 

 

$

105,222

 

 

$

20,960

 

 

$

6,739

 

 

$

2,699

 

 

$

2,635

 

 

$

9,335

 

 

$

256,196

 

Special Mention

 

 

—

 

 

 

1,226

 

 

 

926

 

 

 

2,019

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,171

 

Substandard

 

 

—

 

 

 

—

 

 

 

42

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

42

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate Construction

 

$

108,606

 

 

$

106,448

 

 

$

21,928

 

 

$

8,758

 

 

$

2,699

 

 

$

2,635

 

 

$

9,335

 

 

$

260,409

 

Real Estate Construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

-

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Farm Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

2,207

 

 

$

967

 

 

$

2,256

 

 

$

4,462

 

 

$

789

 

 

$

12,528

 

 

$

1,292

 

 

$

24,501

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20

 

 

 

—

 

 

 

20

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

250

 

 

 

—

 

 

 

250

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Farm Real Estate

 

$

2,207

 

 

$

967

 

 

$

2,256

 

 

$

4,462

 

 

$

789

 

 

$

12,798

 

 

$

1,292

 

 

$

24,771

 

Farm Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Financing Receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

28,177

 

 

$

13,924

 

 

$

6,620

 

 

$

3,678

 

 

$

1,725

 

 

$

1

 

 

$

—

 

 

$

54,125

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Substandard

 

 

—

 

 

 

8

 

 

 

38

 

 

 

61

 

 

 

231

 

 

 

17

 

 

 

—

 

 

 

355

 

Doubtful

 

 

—

 

 

 

139

 

 

 

—

 

 

 

15

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

162

 

Total Lease Financing Receivables

 

$

28,177

 

 

$

14,071

 

 

$

6,658

 

 

$

3,754

 

 

$

1,964

 

 

$

18

 

 

$

-

 

 

$

54,642

 

Lease Financing Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

6,510

 

 

$

4,135

 

 

$

3,615

 

 

$

1,578

 

 

$

509

 

 

$

248

 

 

$

1,424

 

 

$

18,019

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

2

 

 

 

14

 

 

 

15

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

37

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Consumer and Other

 

$

6,510

 

 

$

4,137

 

 

$

3,629

 

 

$

1,593

 

 

$

509

 

 

$

254

 

 

$

1,424

 

 

$

18,056

 

Consumer and Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

6

 

 

$

40

 

 

$

40

 

 

$

7

 

 

$

13

 

 

$

3

 

 

$

5

 

 

$

114

 

Total Loans

 

$

513,980

 

 

$

673,054

 

 

$

459,295

 

 

$

302,185

 

 

$

203,527

 

 

$

423,273

 

 

$

286,413

 

 

$

2,861,727

 

Total Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period charge-offs

 

$

7

 

 

$

719

 

 

$

572

 

 

$

7

 

 

$

13

 

 

$

109

 

 

$

5

 

 

$

1,431

 

 

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2024 and 2023.

 

December 31, 2024

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
or Greater

 

 

Total Past
Due

 

 

Current

 

 

Total Loans

 

 

Past Due
90 Days
and
Accruing

 

Commercial & Agriculture

 

$

825

 

 

$

114

 

 

$

1,374

 

 

$

2,313

 

 

$

326,175

 

 

$

328,488

 

 

$

—

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

—

 

 

 

—

 

 

 

225

 

 

 

225

 

 

 

374,142

 

 

 

374,367

 

 

 

225

 

Non-Owner Occupied

 

 

69

 

 

 

8,000

 

 

 

2,514

 

 

 

10,583

 

 

 

1,215,408

 

 

 

1,225,991

 

 

 

—

 

Residential Real Estate

 

 

5,504

 

 

 

1,634

 

 

 

2,273

 

 

 

9,411

 

 

 

754,458

 

 

 

763,869

 

 

 

—

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

305,992

 

 

 

305,992

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,035

 

 

 

23,035

 

 

 

—

 

Lease Financing Receivables

 

 

575

 

 

 

351

 

 

 

909

 

 

 

1,835

 

 

 

45,065

 

 

 

46,900

 

 

 

—

 

Consumer and Other

 

 

181

 

 

 

37

 

 

 

3

 

 

 

221

 

 

 

12,367

 

 

 

12,588

 

 

 

—

 

Total

 

$

7,154

 

 

$

10,136

 

 

$

7,298

 

 

$

24,588

 

 

$

3,056,642

 

 

$

3,081,230

 

 

$

225

 

 

December 31, 2023

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
or Greater

 

 

Total Past
Due

 

 

Current

 

 

Total Loans

 

 

Past Due
90 Days
and
Accruing

 

Commercial & Agriculture

 

$

1,228

 

 

$

471

 

 

$

1,999

 

 

$

3,698

 

 

$

301,095

 

 

$

304,793

 

 

$

73

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

4

 

 

 

—

 

 

 

123

 

 

 

127

 

 

 

377,194

 

 

 

377,321

 

 

 

—

 

Non-Owner Occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0

 

 

 

1,161,894

 

 

 

1,161,894

 

 

 

—

 

Residential Real Estate

 

 

4,581

 

 

 

1,180

 

 

 

1,642

 

 

 

7,403

 

 

 

652,438

 

 

 

659,841

 

 

 

—

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

260,409

 

 

 

260,409

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24,771

 

 

 

24,771

 

 

 

—

 

Lease Financing Receivables

 

 

950

 

 

 

410

 

 

 

373

 

 

 

1,733

 

 

 

52,909

 

 

 

54,642

 

 

 

—

 

Consumer and Other

 

 

172

 

 

 

23

 

 

 

2

 

 

 

197

 

 

 

17,859

 

 

 

18,056

 

 

 

—

 

Total

 

$

6,935

 

 

$

2,084

 

 

$

4,139

 

 

$

13,158

 

 

$

2,848,569

 

 

$

2,861,727

 

 

$

73

 

 

 

The following table presents loans on nonaccrual status as of December 31, 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

Nonaccrual loans with a related ACL

 

 

Nonaccrual loans without a related ACL

 

 

Total Nonaccrual loans

 

 

Interest Income Recognized

 

Commercial & Agriculture

 

$

8,901

 

 

$

3,370

 

 

$

12,271

 

 

$

1

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

36

 

 

 

—

 

 

 

36

 

 

 

79

 

Non-Owner Occupied

 

 

2,514

 

 

 

8,000

 

 

 

10,514

 

 

 

—

 

Residential Real Estate

 

 

4,745

 

 

 

2,131

 

 

 

6,876

 

 

 

172

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

-

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

-

 

 

 

—

 

Lease Financing Receivables

 

 

638

 

 

 

600

 

 

 

1,238

 

 

 

—

 

Consumer and Other

 

 

15

 

 

 

—

 

 

 

15

 

 

 

4

 

Total

 

$

16,849

 

 

$

14,101

 

 

$

30,950

 

 

$

256

 

 

The following table presents loans on nonaccrual status as of December 31, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

Nonaccrual loans with a related ACL

 

 

Nonaccrual loans without a related ACL

 

 

Total Nonaccrual loans

 

 

Interest Income Recognized

 

Commercial & Agriculture

 

$

914

 

 

$

4,891

 

 

$

5,805

 

 

$

9

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

269

 

 

 

3

 

 

 

272

 

 

 

7

 

Non-Owner Occupied

 

 

—

 

 

 

1,167

 

 

 

1,167

 

 

 

—

 

Residential Real Estate

 

 

—

 

 

 

4,633

 

 

 

4,633

 

 

 

26

 

Real Estate Construction

 

 

—

 

 

 

41

 

 

 

41

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease Financing Receivables

 

 

15

 

 

 

492

 

 

 

507

 

 

 

—

 

Consumer and Other

 

 

—

 

 

 

42

 

 

 

42

 

 

 

4

 

Total

 

$

1,198

 

 

$

11,269

 

 

$

12,467

 

 

$

46

 

 

The following table presents loans on nonaccrual status as of December 31, 2022.

 

 

 

 

 

 

 

 

December 31, 2022

 

Total Nonaccrual loans

 

 

Interest Income Recognized

 

Commercial & Agriculture

 

$

774

 

 

$

—

 

Commercial Real Estate:

 

 

 

 

 

 

Owner Occupied

 

 

386

 

 

 

143

 

Non-Owner Occupied

 

 

1,109

 

 

 

—

 

Residential Real Estate

 

 

3,926

 

 

 

73

 

Real Estate Construction

 

 

221

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

Lease Financing Receivables

 

 

—

 

 

 

—

 

Consumer and Other

 

 

91

 

 

 

235

 

Total

 

$

6,507

 

 

$

451

 

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although Civista may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the borrower has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months. The gross interest income that would have been recorded on nonaccrual loans in 2024, 2023 and 2022 if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, was $657, $446 and $384, respectively. The amount of interest income on such loans recognized on a cash basis was $256 in 2024, $343 in 2023 and $451 in 2022.

In accordance with the adoption of ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, accounting guidance for Troubled Debt Restructurings ("TDRs") for creditors has been eliminated. New guidance with respect to recognition, measurement, and disclosures of loans for borrowers experiencing financial difficulties supersedes guidance on TDRs. Under ASU 2022-02, the Company is required to evaluate whether a loan modification represents a new loan or a continuation of an existing loan. The amendment enhanced existing disclosure requirements and introduced new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty under criteria of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or term extension.

Of the loans modified as of December 31, 2024, $16.6 million were on non-accrual status and partial charge-offs have in some cases been taken against the outstanding balance. The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each loan upon loan 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 loans to borrowers experiencing financial difficulty. The Company uses probability of default/loss given default, discounted cash flows or remaining life method 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.

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of modification granted during the year ended December 31, 2024. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of loan category is also presented below:

 

 

 

Loans Modifications Made to Borrowers Experiencing Financial Difficulty

 

 

 

December 31, 2024

 

 

 

(Dollars in Thousands)

 

 

 

Term Extension

 

 

Payment Deferral

 

Loan Type

 

Amortized Cost Basis

 

 

Percent of total loans by
category

 

 

Amortized Cost Basis

 

 

Percent of total loans by
category

 

Commercial & Agriculture

 

$

4,549

 

 

 

1.38

%

 

$

435

 

 

 

0.13

%

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-Owner Occupied

 

 

8,000

 

 

 

0.65

%

 

 

2,514

 

 

 

0.21

%

Residential Real Estate

 

 

1,115

 

 

 

0.15

%

 

 

—

 

 

 

—

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer and Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Loan Modifications

 

$

13,664

 

 

 

 

 

$

2,949

 

 

 

 

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

 

Term Extension

Loan Type

Financial Effect

Commercial & Agriculture

 - 6 month, 12 month and 62 month term extensions

Commercial Real Estate:

 

Owner Occupied

 

Non-Owner Occupied

- 6 month term extension

Residential Real Estate

- 35 month term extension

Real Estate Construction

 

Farm Real Estate

 

Consumer and Other

 

 

 

 

 

 

 

 

 

 

Payment Deferral

Loan Type

Financial Effect

Commercial & Agriculture

- 5 month payment deferral

Commercial Real Estate:

 

Owner Occupied

 

Non-Owner Occupied

- 5 month and 7.5 month payment deferral

Residential Real Estate

 

Real Estate Construction

 

Farm Real Estate

 

Consumer and Other

 

 

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. There were no modification loans that had a payment default during the year ended December 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. There were no loans modified to borrowers experiencing financial difficulty during the period ended December 31, 2023. There were no loans modified in a troubled debt restructuring during the period ended December 31, 2022.

 

The Company closely monitors the performance of the loans that were modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Twelve of the modified loans are on nonaccrual as of December 31, 2024.

 

Individually Evaluated Loans: Larger (greater than $350) Commercial & Agricultural and Commercial Real Estate loan relationships, as well as Residential Real Estate and Consumer loans and Lease financing receivables that are part of a larger relationship are individually evaluated on a quarterly basis, when they do not share similar risk characteristics with the collectively evaluated pools. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. The Company’s policy for recognizing interest income on individually evaluated loans does not differ from its overall policy for interest recognition.

 

The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans.

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

Real Estate

 

 

Other

 

 

Allowance for Credit Losses

 

Commercial & Agriculture

 

$

—

 

 

$

8,179

 

 

$

1,679

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

—

 

 

 

—

 

 

 

—

 

Non-Owner Occupied

 

 

10,514

 

 

 

—

 

 

 

674

 

Residential Real Estate

 

 

2,131

 

 

 

—

 

 

 

—

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

Lease Financing Receivables

 

 

—

 

 

 

665

 

 

 

6

 

Consumer and Other

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

12,645

 

 

$

8,844

 

 

$

2,359

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

Real Estate

 

 

Other

 

 

Allowance for Credit Losses

 

Commercial & Agriculture

 

$

—

 

 

$

4,674

 

 

$

945

 

Commercial Real Estate:

 

 

 

 

 

 

 

 

 

Owner Occupied

 

 

308

 

 

 

—

 

 

 

37

 

Non-Owner Occupied

 

 

1,167

 

 

 

—

 

 

 

268

 

Residential Real Estate

 

 

149

 

 

 

—

 

 

 

—

 

Real Estate Construction

 

 

—

 

 

 

—

 

 

 

—

 

Farm Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

Lease Financing Receivables

 

 

—

 

 

 

61

 

 

 

15

 

Consumer and Other

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,624

 

 

$

4,735

 

 

$

1,265

 

 

Collateral-dependent loans consist primarily of Residential Real Estate, Commercial Real Estate and Commercial and Agricultural loans. These loans are individually evaluated when foreclosure is probable or when the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral. In the case of Commercial and Agricultural loans secured by equipment, the fair value of the collateral is estimated by third-party valuation experts. Loan balances are charged down to the underlying collateral value when they are deemed uncollectible. Note that the Company did not elect to use the collateral maintenance agreement practical expedient available under CECL.

 

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in Other assets on the Consolidated Balance Sheet. As of December 31, 2024 and 2023, there were no foreclosed assets included in Other assets. As of December 31, 2024 and 2023, the Company had initiated formal foreclosure procedures on $669 and $1,018, respectively, of Residential Real Estate loans.

 

Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures

 

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from a contractual obligation to extend credit. The allowance for credit losses on off-balance sheet credit exposures is recorded within accrued expenses and other liabilities on the Consolidated Balance Sheet with adjustments recorded in provision for credit losses on the Consolidated Statements of Operations. The estimated credit loss includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate of expected credit loss is based on the historical loss rate for the loan class in which the loan commitments would be classified as if funded.

 

The following table lists the allowance for credit losses on off-balance sheet credit exposures as of December 31, 2024:

 

 

Twelve Months Ended

 

 

December 31,

 

 

2024

 

2023

 

Beginning of Period

$

3,901

 

—

 

      CECL adoption adjustments

 

—

 

 

3,386

 

Charge-offs

 

—

 

 

—

 

Recoveries

 

—

 

 

—

 

Provision

 

(521

)

 

515

 

End of Period

$

3,380

 

 

3,901