Annual report [Section 13 and 15(d), not S-K Item 405]

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES

v3.25.4
LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 31, 2025
Loans Held for Investment and Allowance for Credit Losses [Abstract]  
LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES
Note 3
LOANS HELD FOR INVESTMENT AND ALLOWANCE
 
FOR CREDIT LOSSES
Loan Portfolio Composition
.
 
The composition of the HFI loan portfolio at December 31 was as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2025
2024
Commercial, Financial and Agricultural
$
180,341
 
$
189,208
Real Estate – Construction
 
146,920
 
 
219,994
Real Estate – Commercial Mortgage
 
768,731
 
 
779,095
Real Estate – Residential
(1)
 
1,025,690
 
 
1,042,504
Real Estate – Home Equity
 
240,897
 
 
220,064
Consumer
(2)
 
183,539
 
 
200,685
Loans Held for Investment, Net of Unearned Income
$
2,546,118
 
$
2,651,550
(1)
 
Includes loans in process with outstanding balances
 
of $
5.6
 
million and $
13.6
 
million for 2025 and 2024, respectively.
(2)
 
Includes overdraft balances of $
1.2
 
million at December 31, 2025 and 2024.
Net deferred costs, which include premiums on purchased loans, included
 
in loans were $
8.6
 
million at December 31, 2025 and
$
8.3
 
million at December 31, 2024.
 
Accrued interest receivable on loans which is excluded from amortized
 
cost totaled $
9.8
 
million at December 31, 2025 and $
10.3
million at December 31, 2024, and is reported separately in Other Assets.
 
The Company has pledged a floating lien on certain 1-4 family residential
 
mortgage loans, commercial real estate mortgage loans,
and home equity loans to support available borrowing capacity at the FHLB and
 
has pledged a blanket floating lien on all
consumer loans, commercial loans, and construction loans to support available
 
borrowing capacity at the Federal Reserve Bank of
Atlanta.
 
Loan Purchases and Sales
. During the year ended December 31, 2025, the Company sold loans classified as held
 
for investment
totaling $
4.7
 
million, resulting in a net loss of $
0.2
 
million. The Company retained no continuing interest in the loans sold.
Allowance for Credit Losses
.
 
The methodology for estimating the amount of credit losses reported in
 
the allowance for credit
losses (“ACL”) has two basic components: first, an asset-specific component
 
involving loans that do not share risk characteristics
and the measurement of expected credit losses for such individual loans;
 
and second, a pooled component for expected credit
losses for pools of loans that share similar risk characteristics.
 
This methodology is discussed further in Note 1 – Significant
Accounting Policies.
 
The following table details the activity in the allowance for credit losses by portfolio
 
segment for the years ended December 31.
 
Allocation of a portion of the allowance to one category of loans does not preclude
 
its availability to absorb losses in other
categories.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
,
Real Estate
Financial,
 
Real Estate
Commercial
 
Real Estate
Real Estate
(Dollars in Thousands)
Agricultural
Construction
Mortgage
Residential
Home Equity
Consumer
Total
2025
Beginning Balance
$
1,514
$
2,384
$
5,867
$
14,568
$
1,952
$
2,966
$
29,251
 
Provision for Credit Losses
688
(703)
950
680
393
3,327
5,335
 
Charge-Offs
(782)
-
(4)
(136)
(44)
(5,954)
(6,920)
 
Recoveries
 
331
-
46
205
67
2,686
3,335
 
Net (Charge-Offs) Recoveries
(451)
-
42
69
23
(3,268)
(3,585)
Ending Balance
$
1,751
$
1,681
$
6,859
$
15,317
$
2,368
$
3,025
$
31,001
2024
Beginning Balance
$
1,482
$
2,502
$
5,782
$
15,056
$
1,818
$
3,301
$
29,941
 
Provision for Credit Losses
1,165
(74)
(173)
(603)
129
4,531
4,975
 
Charge-Offs
(1,512)
(47)
(3)
(61)
(132)
(7,627)
(9,382)
 
Recoveries
379
3
261
176
137
2,761
3,717
 
Net (Charge-Offs) Recoveries
(1,133)
(44)
258
115
5
(4,866)
(5,665)
Ending Balance
$
1,514
$
2,384
$
5,867
$
14,568
$
1,952
$
2,966
$
29,251
2023
Beginning Balance
$
1,506
$
2,654
$
4,815
$
10,741
$
1,864
$
3,488
$
25,068
 
Provision for Credit Losses
210
(154)
1,035
4,141
(233)
4,596
9,595
 
Charge-Offs
(511)
-
(120)
(79)
(39)
(8,543)
(9,292)
 
Recoveries
277
2
52
253
226
3,760
4,570
 
Net (Charge-Offs) Recoveries
(234)
2
(68)
174
187
(4,783)
(4,722)
Ending Balance
$
1,482
$
2,502
$
5,782
$
15,056
$
1,818
$
3,301
$
29,941
The $
1.8
 
million increase in the allowance for credit losses in 2025 reflected a credit loss provision
 
of $
5.3
 
million and net loan
charge-offs of $
3.6
 
million.
 
The $
0.7
 
million decrease in the allowance for credit losses in 2024 reflected a
 
credit loss provision
of $
5.0
 
million and net loan charge-offs of $
5.7
 
million.
 
The increase in the allowance in 2025 was primarily attributable to
qualitative factor adjustments that were partially offset by
 
lower loan balances.
 
The decrease in the allowance in 2024 was
primarily due to lower new loan volume and loan balances and favorable
 
loan grade migration.
 
Four unemployment rate forecast
scenarios continue to be utilized to estimate probability of default and
 
are weighted based on management’s
 
estimate of
probability.
 
See Note 1 – Significant accounting policies for more on the calculation of the provision
 
for credit losses.
 
See Note
21 – Commitments and Contingencies for information on the provision
 
for credit losses related to off-balance sheet commitments.
Loan Portfolio Aging.
 
A loan is defined as a past due loan when one full payment is past due or a contractual maturity
 
is over 30
days past due (“DPD”).
The following table presents the aging of the amortized cost basis in accruing
 
past due loans by class of loans at December 31,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30-59
 
60-89
 
90 +
 
Total
Total
Nonaccrual
Total
(Dollars in Thousands)
DPD
DPD
DPD
Past Due
Current
Loans
Loans
2025
Commercial, Financial and Agricultural
$
537
$
172
$
-
$
709
$
178,354
$
1,278
$
180,341
Real Estate – Construction
 
295
-
-
295
146,625
-
146,920
Real Estate – Commercial Mortgage
 
1,386
-
-
1,386
764,785
2,560
768,731
Real Estate – Residential
 
807
1,930
-
2,737
1,020,810
2,143
1,025,690
Real Estate – Home Equity
 
67
-
-
67
239,061
1,769
240,897
Consumer
 
1,561
262
-
1,823
180,871
845
183,539
Total
$
4,653
$
2,364
$
-
$
7,017
$
2,530,506
$
8,595
$
2,546,118
2024
Commercial, Financial and Agricultural
$
340
$
50
$
-
$
390
$
188,781
$
37
$
189,208
Real Estate – Construction
 
-
-
-
-
219,994
-
219,994
Real Estate – Commercial Mortgage
 
719
100
-
819
777,710
566
779,095
Real Estate – Residential
 
185
498
-
683
1,038,694
3,127
1,042,504
Real Estate – Home Equity
 
122
-
-
122
218,160
1,782
220,064
Consumer
 
2,154
143
-
2,297
197,598
790
200,685
Total
$
3,520
$
791
$
-
$
4,311
$
2,640,937
$
6,302
$
2,651,550
Nonaccrual Loans
.
 
Loans are generally placed on nonaccrual status if principal or interest payments
 
become 90 days past due
and/or management deems the collectability of the principal and/or
 
interest to be doubtful.
 
Loans are returned to accrual status
when the principal and interest amounts contractually due are brought
 
current or when future payments are reasonably assured.
 
The Company did not recognize a significant amount of interest income
 
on nonaccrual loans for the years ended December 31,
2025
 
and 2024.
 
The following table presents the amortized cost basis of loans in nonaccrual
 
status and loans past due over 90 days and still on
accrual by class of loans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2025
 
2024
Nonaccrual
Nonaccrual
90 + Days
Nonaccrual
Nonaccrual
90 + Days
With No
With
Still
With No
With
Still
(Dollars in Thousands)
ACL
 
ACL
 
Accruing
ACL
 
ACL
 
Accruing
Commercial, Financial and Agricultural
$
1,038
$
240
$
-
$
-
$
37
$
-
Real Estate – Construction
 
-
-
-
-
-
-
Real Estate – Commercial Mortgage
 
753
1,807
-
427
139
-
Real Estate – Residential
 
1,275
868
-
2,046
1,081
-
Real Estate – Home Equity
 
1,382
387
-
509
1,273
-
Consumer
 
-
845
-
-
790
-
Total
 
Nonaccrual Loans
$
4,448
$
4,147
$
-
$
2,982
$
3,320
$
-
Collateral Dependent Loans
.
 
The following table presents the amortized cost basis of collateral dependent loans
 
at December 31:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2025
2024
Real Estate
Non Real Estate
Real Estate
Non Real Estate
(Dollars in Thousands)
Secured
Secured
Secured
Secured
Commercial, Financial and Agricultural
$
-
$
1,087
$
-
$
39
Real Estate – Construction
-
-
-
-
Real Estate – Commercial Mortgage
2,450
-
427
-
Real Estate – Residential
1,275
-
2,476
-
Real Estate – Home Equity
1,561
-
651
-
Consumer
-
-
-
55
Total
$
5,286
$
1,087
$
3,554
$
94
A loan is collateral dependent when the borrower is experiencing financial
 
difficulty and repayment of the loan is dependent on
the sale or operation of the underlying collateral.
 
The Bank’s collateral dependent
 
loan portfolio is comprised primarily of real estate secured loans, collateralized
 
by either
residential or commercial collateral types.
 
The loans are carried at fair value based on current values determined by either
independent appraisals or internal evaluations, adjusted for selling costs or
 
other amounts to be deducted when estimating
expected net sales proceeds.
 
Residential Real Estate Loans In Process of Foreclosure
.
 
At December 31, 2025 and 2024, the Company had $
0.2
 
million and
$
0.5
 
million, respectively, in 1-4 family
 
residential real estate loans for which formal foreclosure proceedings were
 
in process.
Modifications to Borrowers Experiencing
 
Financial Difficulty
.
 
Occasionally, the Company
 
may modify loans to borrowers who
are experiencing financial difficulty.
 
Loan modifications to borrowers in financial difficulty are loans
 
in which the Company has
granted an economic concession to the borrower that it would not otherwise consider.
 
In these instances, as part of a work-out
alternative, the Company will make concessions including the extension
 
of the loan term, a principal moratorium, a reduction in
the interest rate, or a combination thereof.
 
The impact of the modifications and defaults are factored into the allowance for credit
losses on a loan-by-loan basis.
 
Thus, specific reserves are established based upon the results of either a discounted
 
cash flow
analysis or the underlying collateral value, if the loan is deemed to be collateral
 
dependent.
 
A modified loan classification can be
removed if the borrower’s financial condition improves
 
such that the borrower is no longer in financial difficulty,
 
the loan has not
had any forgiveness of principal or interest, and the loan
 
is subsequently refinanced or restructured at market terms and qualifies
as a new loan.
The financial effects of the loan modifications made to borrowers during
 
the 12 months ended December 31, 2025 and 2024 were
not significant.
 
During the year ended December 31, 2025, the Company modified
three
 
commercial mortgage loans to borrowers experiencing
financial difficulty.
 
One
 
loan for $
2.5
 
million at the modification date was provided a
6
-month interest only extension in
exchange for additional collateral and had a $
2.1
 
million balance at December 31, 2025.
 
Two
 
loans totaling $
1.4
 
million were
provided a
5
-month interest only forbearance period, and the outstanding balances
 
at the modification date remained unchanged at
December 31, 2025.
 
All
three
 
loans were current with no payment delay at December 31, 2025.
 
During the year ended December 31, 2024, the Company modified
one
 
commercial mortgage loan due to the borrower
experiencing financial difficulty.
 
The balance of the loan at December 31, 2024 was $
0.3
 
million. The Company reduced the
interest rate on the loan by
1
% in addition to extending the term of the loan from
5
 
to
20
 
years.
 
The loan was on non-accrual
status at December 31, 2024 and did not have a payment delay as of December 31,
 
2024.
Credit Risk Management
.
 
The Company has adopted comprehensive lending policies, underwriting standards
 
and loan review
procedures designed to maximize loan income within an acceptable
 
level of risk.
 
Management and the Board of Directors of the
Company review and approve these policies and procedures on
 
a regular basis (at least annually).
 
Reporting systems are used to monitor loan originations, loan quality,
 
concentrations of credit, loan delinquencies and
nonperforming loans and potential problem loans.
 
Management and the Credit Risk Oversight Committee periodically review
our lines of business to monitor asset quality trends and the appropriateness
 
of credit policies.
 
In addition, total borrower
exposure limits are established, and concentration risk is monitored.
 
As part of this process, the overall composition of the loan
portfolio is reviewed to gauge diversification of risk, client concentrations,
 
industry group, loan type, geographic area, or other
relevant classifications of loans.
 
Specific segments of the loan portfolio are monitored and reported to
 
the Board on a quarterly
basis and have strategic plans in place to supplement board-approved
 
credit policies governing exposure limits and underwriting
standards.
 
Detailed below are the types of loans within the Company’s
 
loan portfolio and risk characteristics unique to each.
 
Commercial, Financial, and Agricultural – Loans in this category
 
are primarily made based on identified cash flows of the
borrower with consideration given to underlying collateral and
 
personal or other guarantees.
 
Lending policy establishes debt
service coverage ratio limits that require a borrower’s cash flow to
 
be sufficient to cover principal and interest payments on all
new and existing debt.
 
The majority of these loans are secured by the assets being financed or other
 
business assets such as
accounts receivable, inventory,
 
or equipment.
 
Collateral values are determined based upon third-party appraisals and evaluations.
 
Loan to value ratios at origination are governed by established policy guidelines.
 
Real Estate Construction – Loans in this category consist of short-term
 
construction loans, revolving and non-revolving credit
lines and construction/permanent loans made to individuals and investors
 
to finance the acquisition, development, construction or
rehabilitation of real property.
 
These loans are primarily made based on identified cash flows of the
 
borrower or project and
generally secured by the property being financed, including 1-4
 
family residential properties and commercial properties that are
either owner-occupied or investment in nature.
 
These properties may include either vacant or improved property.
 
Construction
loans are generally based upon estimates of costs and value associated with
 
the completed project.
 
Collateral values are
determined based upon third-party appraisals and evaluations.
 
Loan to value ratios at origination are governed by established
policy guidelines.
 
The disbursement of funds for construction loans is made in relation to the progress
 
of the project and as such
these loans are closely monitored by on-site inspections.
 
Real Estate Commercial Mortgage – Loans in this category consist of commercial
 
mortgage loans secured by property that is
either owner-occupied or investment in nature.
 
These loans are primarily made based on identified cash flows of the borrower
 
or
project with consideration given to underlying real estate collateral and
 
personal guarantees.
 
Lending policy establishes debt
service coverage ratios and loan to value ratios specific to the property type.
 
Collateral values are determined based upon third-
party appraisals and evaluations.
 
Real Estate Residential – Residential mortgage loans held in the Company’s
 
loan portfolio are made to borrowers that
demonstrate the ability to make scheduled payments with full consideration
 
to underwriting factors such as current income,
employment status, current assets, other financial resources, credit history,
 
and the value of the collateral.
 
Collateral consists of
mortgage liens on 1-4 family residential properties.
 
Collateral values are determined based upon third party appraisals and
evaluations.
 
The Company does not originate sub-prime loans.
 
Real Estate Home Equity – Home equity loans and lines are made to qualified
 
individuals for legitimate purposes generally
secured by senior or junior mortgage liens on owner-occupied
 
1-4 family homes or vacation homes.
 
Borrower qualifications
include favorable credit history combined with supportive income and debt
 
ratio requirements and combined loan to value ratios
within established policy guidelines.
 
Collateral values are determined based upon third-party appraisals and evaluations.
 
Consumer Loans – This loan category includes personal installment loans,
 
direct and indirect automobile financing, and overdraft
lines of credit.
 
The majority of the consumer loan category consists of indirect and direct automobile
 
loans.
 
Lending policy
establishes maximum debt to income ratios, minimum credit scores, and
 
includes guidelines for verification of applicants’ income
and receipt of credit reports.
 
Credit Quality Indicators
.
 
As part of the ongoing monitoring of the Company’s
 
loan portfolio quality, management
 
categorizes
loans into risk categories based on relevant information about the
 
ability of borrowers to service their debt such as: current
financial information, historical payment performance, credit documentation,
 
and current economic and market trends, among
other factors.
 
Risk ratings are assigned to each loan and revised as needed through established monitoring
 
procedures for
individual loan relationships over a predetermined amount
 
and review of smaller balance homogenous loan pools.
 
The Company
uses the definitions noted below for categorizing and managing its criticized
 
loans.
 
Loans categorized as “Pass” do not meet the
criteria set forth below and are not considered criticized.
Special Mention – Loans in this category are presently protected from loss, but
 
weaknesses are apparent which, if not corrected,
could cause future problems.
 
Loans in this category may not meet required underwriting criteria and
 
have no mitigating
factors.
 
More than the ordinary amount of attention is warranted for these loans.
 
 
 
Substandard – Loans in this category exhibit well-defined weaknesses that would
 
typically bring normal repayment into jeopardy.
These loans are no longer adequately protected due to well-defined
 
weaknesses that affect the repayment capacity of the
borrower.
 
The possibility of loss is much more evident and above average supervision is required
 
for these loans.
Doubtful – Loans in this category have all the weaknesses inherent in a loan categorized
 
as Substandard, with the characteristic
that the weaknesses make collection or liquidation in full, on the basis of currently
 
existing facts, conditions, and values, highly
questionable and improbable.
Performing/Nonperforming – Loans within certain homogenous
 
loan pools (home equity and consumer) are not individually
reviewed but are monitored for credit quality via the aging status of the loan and
 
by payment activity.
 
The performing or
nonperforming status is updated on an on-going basis dependent upon
 
improvement and deterioration in credit quality.
The following tables summarize gross loans held for investment at December
 
31, 2025
 
and December 31, 2024
 
and current period
gross write-offs for each of the 12-month periods ended
 
December 31, 2025 and December 31, 2024
 
by years of origination and
internally assigned credit risk ratings (refer to Credit Risk Management section
 
for detail on risk rating system).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
Term Loans by Origination Year
Revolving
December 31, 2025
2025
2024
2023
2022
2021
Prior
Loans
Total
Commercial, Financial,
Agricultural:
Pass
$
37,680
$
23,425
$
22,907
$
23,068
$
10,922
$
8,740
$
48,354
$
175,096
Special Mention
322
121
2,740
63
4
180
163
3,593
Substandard
 
-
 
146
 
95
 
245
 
16
 
36
 
1,114
 
1,652
Total
$
38,002
$
23,692
$
25,742
$
23,376
$
10,942
$
8,956
$
49,631
$
180,341
Current-Period Gross
Writeoffs
$
-
$
209
$
114
$
344
$
70
$
1
$
44
$
782
Real Estate - Construction:
Pass
$
76,850
$
39,024
$
3,298
$
14,996
$
53
$
187
$
9,295
$
143,703
Special Mention
-
-
372
2,127
-
-
-
2,499
Substandard
 
-
 
-
 
718
 
-
 
-
 
-
 
-
 
718
Total
$
76,850
$
39,024
$
4,388
$
17,123
$
53
$
187
$
9,295
$
146,920
Current-Period Gross
Writeoffs
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
Real Estate - Commercial
Mortgage:
Pass
$
93,723
$
76,348
$
101,262
$
174,959
$
92,388
$
152,307
$
22,555
$
713,542
Special Mention
9,830
4,477
5,725
20,547
3,922
4,074
720
49,295
Substandard
 
750
 
1,402
 
98
 
418
 
1,229
 
1,847
 
150
 
5,894
Total
$
104,303
$
82,227
$
107,085
$
195,924
$
97,539
$
158,228
$
23,425
$
768,731
Current-Period Gross
Writeoffs
$
-
$
-
$
-
$
-
$
-
$
4
$
-
$
4
Real Estate - Residential:
Pass
$
142,278
$
130,895
$
269,844
$
316,402
$
59,950
$
87,545
$
10,521
$
1,017,435
Special Mention
-
-
-
116
954
807
378
2,255
Substandard
 
-
 
558
 
429
 
1,201
 
1,310
 
2,341
 
161
 
6,000
Total
 
$
142,278
$
131,453
$
270,273
$
317,719
$
62,214
$
90,693
$
11,060
$
1,025,690
Current-Period Gross
Writeoffs
$
-
$
27
$
59
$
32
$
-
$
18
$
-
$
136
Real Estate - Home
Equity:
Performing
$
391
$
9
$
411
$
19
$
106
$
587
$
237,678
$
239,201
Nonperforming
-
-
-
-
-
-
1,696
1,696
Total
 
$
391
 
9
 
411
 
19
 
106
 
587
 
239,374
 
240,897
Current-Period Gross
Writeoffs
$
-
$
-
$
-
$
-
$
-
$
9
$
35
$
44
Consumer:
Performing
$
63,443
$
21,866
$
27,919
$
31,464
$
21,524
$
5,164
$
11,315
$
182,695
Nonperforming
186
191
149
215
72
31
-
844
Total
 
$
63,629
$
22,057
$
28,068
$
31,679
$
21,596
$
5,195
$
11,315
$
183,539
Current-Period Gross
Writeoffs
$
2,789
$
376
$
1,003
$
1,036
$
454
$
144
$
152
$
5,954
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
Term Loans by Origination Year
Revolving
December 31, 2024
2024
2023
2022
2021
2020
Prior
Loans
Total
Commercial, Financial,
Agricultural:
Pass
$
35,596
$
36,435
$
37,506
$
18,433
$
4,610
$
9,743
$
41,720
$
184,043
Special Mention
435
3,979
261
9
-
-
76
4,760
Substandard
 
-
 
-
 
193
 
12
 
58
 
71
 
71
 
405
Total
$
36,031
$
40,414
$
37,960
$
18,454
$
4,668
$
9,814
$
41,867
$
189,208
Current-Period Gross
Writeoffs
$
9
$
548
$
500
$
111
$
160
$
1
$
183
$
1,512
Real Estate - Construction:
Pass
$
105,148
$
73,615
$
29,821
$
53
$
-
$
185
$
8,288
$
217,110
Special Mention
1,555
-
1,329
-
-
-
-
2,884
Total
$
106,703
$
73,615
$
31,150
$
53
$
-
$
185
$
8,288
$
219,994
Current-Period Gross
Writeoffs
$
-
$
-
$
47
$
-
$
-
$
-
$
-
$
47
Real Estate - Commercial
Mortgage:
Pass
$
77,561
$
110,183
$
207,574
$
109,863
$
87,369
$
122,272
$
26,324
$
741,146
Special Mention
171
2,913
17,031
-
2,253
4,402
530
27,300
Substandard
 
-
 
2,463
 
3,403
 
869
 
2,508
 
1,305
 
101
 
10,649
Total
$
77,732
$
115,559
$
228,008
$
110,732
$
92,130
$
127,979
$
26,955
$
779,095
Current-Period Gross
Writeoffs
$
-
$
-
$
-
$
-
$
-
$
-
$
3
$
3
Real Estate - Residential:
Pass
$
165,050
$
316,521
$
358,851
$
71,423
$
31,169
$
76,921
$
11,872
$
1,031,807
Special Mention
-
265
-
1,104
468
534
521
2,892
Substandard
 
-
 
528
 
1,450
 
1,446
 
1,295
 
2,918
 
168
 
7,805
Total
 
$
165,050
$
317,314
$
360,301
$
73,973
$
32,932
$
80,373
$
12,561
$
1,042,504
Current-Period Gross
Writeoffs
$
-
$
13
$
-
$
-
$
-
$
48
$
-
$
61
Real Estate - Home
Equity:
Performing
$
801
$
521
$
30
$
119
$
9
$
821
$
215,981
$
218,282
Nonperforming
-
-
-
-
-
-
1,782
1,782
Total
 
$
801
 
521
 
30
 
119
 
9
 
821
 
217,763
 
220,064
Current-Period Gross
Writeoffs
$
-
$
-
$
-
$
-
$
-
$
-
$
132
$
132
Consumer:
Performing
$
32,293
$
44,995
$
55,942
$
42,002
$
10,899
$
4,116
$
9,648
$
199,895
Nonperforming
10
174
321
156
58
71
-
790
Total
 
$
32,303
$
45,169
$
56,263
$
42,158
$
10,957
$
4,187
$
9,648
$
200,685
Current-Period Gross
Writeoffs
$
2,562
$
1,605
$
2,088
$
897
$
237
$
76
$
162
$
7,627