Loans and Credit Quality |
Note 5 – Loans and Credit Quality The following table presents the composition of loans receivable at September 30, 2024 and December 31, 2023, respectively: | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | | | Percentage of | | | | Percentage of | | Balance | | total Loans | | Balance | | total Loans | | | | | | | | | | | | | (Dollars in Thousands) | | | | | | | | | | | Commercial real estate | $ | 534,004 | | 42.45% | | $ | 539,034 | | 43.00% | Commercial construction | | 19,886 | | 1.58% | | | 16,840 | | 1.34% | Commercial | | 37,185 | | 2.95% | | | 33,951 | | 2.71% | Residential real estate | | 666,491 | | 52.98% | | | 663,127 | | 52.90% | Consumer | | 518 | | 0.04% | | | 565 | | 0.05% | Total loans | | 1,258,084 | | 100.00% | | | 1,253,517 | | 100.00% | Unearned origination fees | | 646 | | | | | 522 | | | Allowance for credit losses | | (12,206) | | | | | (12,461) | | | Net Loans | $ | 1,246,524 | | | | $ | 1,241,578 | | |
The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weakness), substandard (well defined weakness) and doubtful (full collection unlikely) within the Company's internal risk rating system as of September 30, 2024 by year of origination: | | | | | | | | | | | | | | | | | | | | | | | | | | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Revolving | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | (In Thousands) | Commercial | | | | | | | | | | | | | | | | | | | | | | | | real estate | | | | | | | | | | | | | | | | | | | | | | | | | Pass | $ | 39,974 | | $ | 59,399 | | $ | 147,920 | | $ | 49,038 | | $ | 58,286 | | $ | 168,955 | | $ | 9,084 | | $ | 532,656 | | Special Mention | | - | | | - | | | - | | | 136 | | | - | | | - | | | - | | | 136 | | Substandard | | - | | | - | | | - | | | - | | | - | | | 1,212 | | | - | | | 1,212 | | Total | | 39,974 | | | 59,399 | | | 147,920 | | | 49,174 | | | 58,286 | | | 170,167 | | | 9,084 | | | 534,004 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | | construction | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 2,617 | | | 4,264 | | | 7,544 | | | 5,139 | | | - | | | 29 | | | - | | | 19,593 | | Special Mention | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Substandard | | - | | | - | | | - | | | - | | | - | | | 238 | | | 55 | | | 293 | | Total | | 2,617 | | | 4,264 | | | 7,544 | | | 5,139 | | | - | | | 267 | | | 55 | | | 19,886 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 5,985 | | | 1,717 | | | 3,534 | | | 754 | | | 2,668 | | | 12,435 | | | 6,643 | | | 33,736 | | Special Mention | | 191 | | | - | | | 409 | | | 922 | | | 147 | | | 20 | | | 1,760 | | | 3,449 | | Substandard | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Total | | 6,176 | | | 1,717 | | | 3,943 | | | 1,676 | | | 2,815 | | | 12,455 | | | 8,403 | | | 37,185 | | | | | | | | | | | | | | | | | | | | | | | | | | Residential | | | | | | | | | | | | | | | | | | | | | | | | real estate | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 57,133 | | | 67,023 | | | 89,936 | | | 146,767 | | | 131,372 | | | 151,130 | | | 21,879 | | | 665,240 | | Special Mention | | - | | | - | | | - | | | - | | | - | | | 425 | | | - | | | 425 | | Substandard | | - | | | - | | | 43 | | | 196 | | | - | | | 587 | | | - | | | 826 | | Total | | 57,133 | | | 67,023 | | | 89,979 | | | 146,963 | | | 131,372 | | | 152,142 | | | 21,879 | | | 666,491 | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 98 | | | 73 | | | 83 | | | 13 | | | - | | | 4 | | | 247 | | | 518 | | Special Mention | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Substandard | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Total | | 98 | | | 73 | | | 83 | | | 13 | | | - | | | 4 | | | 247 | | | 518 | Total | | | | | | | | | | | | | | | | | | | | | | | | Loans Receivable | $ | 105,998 | | $ | 132,476 | | $ | 249,469 | | $ | 202,965 | | $ | 192,473 | | $ | 335,035 | | $ | 39,668 | | $ | 1,258,084 |
The Company had gross charge-offs of $11 thousand during the nine months ending September 30, 2024. One (1) charge-off of $5 thousand was a consumer loan originated in 2021 and one (1) charge-off of $6 thousand was a consumer loan originated in 2023.
The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weakness), substandard (well defined weakness) and doubtful (full collection unlikely) within the Company's internal risk rating system as of December 31, 2023 by year of origination: | | | | | | | | | | | | | | | | | | | | | | | | | | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | Revolving | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | (In Thousands) | Commercial | | | | | | | | | | | | | | | | | | | | | | | | real estate | | | | | | | | | | | | | | | | | | | | | | | | | Pass | $ | 62,467 | | $ | 160,257 | | $ | 58,094 | | $ | 64,146 | | $ | 26,835 | | $ | 157,888 | | $ | 8,094 | | $ | 537,781 | | Special Mention | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Substandard | | - | | | - | | | - | | | - | | | - | | | 1,253 | | | - | | | 1,253 | | Total | | 62,467 | | | 160,257 | | | 58,094 | | | 64,146 | | | 26,835 | | | 159,141 | | | 8,094 | | | 539,034 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | | construction | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 2,071 | | | 8,591 | | | 5,412 | | | - | | | 440 | | | 30 | | | - | | | 16,544 | | Special Mention | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Substandard | | - | | | - | | | - | | | - | | | - | | | 241 | | | 55 | | | 296 | | Total | | 2,071 | | | 8,591 | | | 5,412 | | | - | | | 440 | | | 271 | | | 55 | | | 16,840 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 2,236 | | | 4,851 | | | 2,260 | | | 3,312 | | | 5,388 | | | 9,311 | | | 6,572 | | | 33,930 | | Special Mention | | - | | | - | | | - | | | - | | | 21 | | | - | | | - | | | 21 | | Substandard | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Total | | 2,236 | | | 4,851 | | | 2,260 | | | 3,312 | | | 5,409 | | | 9,311 | | | 6,572 | | | 33,951 | | | | | | | | | | | | | | | | | | | | | | | | | | Residential | | | | | | | | | | | | | | | | | | | | | | | | real estate | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 75,372 | | | 96,032 | | | 158,135 | | | 142,318 | | | 46,035 | | | 122,252 | | | 21,423 | | | 661,567 | | Special Mention | | - | | | - | | | - | | | - | | | - | | | 443 | | | - | | | 443 | | Substandard | | - | | | - | | | - | | | - | | | 173 | | | 944 | | | - | | | 1,117 | | Total | | 75,372 | | | 96,032 | | | 158,135 | | | 142,318 | | | 46,208 | | | 123,639 | | | 21,423 | | | 663,127 | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | 130 | | | 118 | | | 22 | | | 1 | | | 13 | | | 11 | | | 270 | | | 565 | | Special Mention | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Substandard | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Total | | 130 | | | 118 | | | 22 | | | 1 | | | 13 | | | 11 | | | 270 | | | 565 | Total | | | | | | | | | | | | | | | | | | | | | | | | Loans Receivable | $ | 142,276 | | $ | 269,849 | | $ | 223,923 | | $ | 209,777 | | $ | 78,905 | | $ | 292,373 | | $ | 36,414 | | $ | 1,253,517 |
The Company had no loans that were charged off during the year ended December 31, 2023. At September 30, 2024, the Company had no foreclosed assets and had one (1) recorded investment in mortgage loans collateralized by residential real estate property in the process of foreclosure in the amount of $173 thousand. At December 31, 2023, the Company had no foreclosed assets and had one (1) recorded investment in a mortgage loan collateralized by residential real estate property in the process of foreclosure in the amount of $121 thousand.
The following table presents the carrying value and related allowance for credit losses of individually analyzed loans at September 30, 2024 and December 31, 2023, respectively: | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance for Credit Losses | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance for Credit Losses | | | | (In Thousands) | | With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | Commercial real estate (1) | | $ | 1,348 | | $ | 1,348 | | | | | $ | 1,303 | | $ | 1,543 | | | | | Commercial construction (1) | | | 55 | | | 55 | | | | | | 55 | | | 55 | | | | | Commercial (1) | | | 513 | | | 513 | | | | | | - | | | - | | | | | Residential real estate (1) | | | 970 | | | 973 | | | | | | 1,202 | | | 1,206 | | | | | Consumer | | | - | | | - | | | | | | - | | | - | | | | | With an allowance recorded: | | | | | | | | | | | | | | | | | | | | Commercial real estate | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | Commercial construction (1) | | | 238 | | | 238 | | | 19 | | | 241 | | | 241 | | | 22 | | Commercial (2) | | | 35 | | | 35 | | | 35 | | | 21 | | | 21 | | | 21 | | Residential real estate (1) | | | 425 | | | 425 | | | 82 | | | 516 | | | 516 | | | 152 | | Consumer | | | - | | | - | | | - | | | - | | | - | | | - | | Total: | | | | | | | | | | | | | | | | | | | | Commercial real estate | | $ | 1,348 | | $ | 1,348 | | $ | - | | $ | 1,303 | | $ | 1,543 | | $ | - | | Commercial construction | | | 293 | | | 293 | | | 19 | | | 296 | | | 296 | | | 22 | | Commercial | | | 548 | | | 548 | | | 35 | | | 21 | | | 21 | | | 21 | | Residential real estate | | | 1,395 | | | 1,398 | | | 82 | | | 1,718 | | | 1,722 | | | 152 | | Consumer | | | - | | | - | | | - | | | - | | | - | | | - | | | | $ | 3,584 | | $ | 3,587 | | $ | 136 | | $ | 3,338 | | $ | 3,582 | | $ | 195 | |
1.All loans are real estate collateral dependent. 2.All loans are non-collateral dependent loans. The following table presents non-accrual loans by classes of the loan portfolio: | | | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | | | | | | | | | (In Thousands) | | Commercial real estate | $ | 136 | | $ | - | | Commercial construction | | - | | | - | | Commercial | | 528 | | | - | | Residential real estate | | 544 | | | 366 | | Consumer | | - | | | - | | Total | $ | 1,208 | | $ | 366 | |
As of September 30, 2024, there were seven (7) loans in non-accrual status in the amount of $1.2 million, of which one (1) loan of $15 thousand is non-collateral dependent and required a related allowance of $15 thousand. The remaining collateral dependent non-accrual loans did not have a required related allowance. There was interest income of $7 thousand and $32 thousand recognized for the three and nine months ended September 30, 2024, respectively, on non-accrual loans. As of December 31, 2023, there were three (3) loans in non-accrual status in the amount of $366 thousand. There was a required related allowance of $66 thousand for these collateral dependent non-accrual loans. The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of September 30, 2024 and December 31, 2023, respectively: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Greater | | | | | | | | | | | Loan | | | | | | than | | | | | | | | Receivables > | | 30-59 Days | | 60-89 Days | | 90 Days | | Total | | | | Total Loan | | 90 Days and | | Past Due | | Past Due | | Past Due | | Past Due | | Current | | Receivables | | Accruing | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | (In Thousands) | Commercial real estate | $ | 349 | | $ | - | | $ | 136 | | $ | 485 | | $ | 533,519 | | $ | 534,004 | | $ | - | Commercial construction | | - | | | - | | | - | | | - | | | 19,886 | | | 19,886 | | | - | Commercial | | - | | | 15 | | | - | | | 15 | | | 37,170 | | | 37,185 | | | - | Residential real estate | | 1,490 | | | - | | | 501 | | | 1,991 | | | 664,500 | | | 666,491 | | | - | Consumer | | 4 | | | - | | | - | | | 4 | | | 514 | | | 518 | | | - | Total | $ | 1,843 | | $ | 15 | | $ | 637 | | $ | 2,495 | | $ | 1,255,589 | | $ | 1,258,084 | | $ | - | December 31, 2023 | | | | | | | | | | | | | | | | | | | | | Commercial real estate | $ | 630 | | $ | - | | $ | - | | $ | 630 | | $ | 538,404 | | $ | 539,034 | | $ | - | Commercial construction | | - | | | - | | | - | | | - | | | 16,840 | | | 16,840 | | | - | Commercial | | - | | | - | | | - | | | - | | | 33,951 | | | 33,951 | | | - | Residential real estate | | 344 | | | - | | | 193 | | | 537 | | | 662,590 | | | 663,127 | | | - | Consumer | | - | | | - | | | - | | | - | | | 565 | | | 565 | | | - | Total | $ | 974 | | $ | - | | $ | 193 | | $ | 1,167 | | $ | 1,252,350 | | $ | 1,253,517 | | $ | - |
The following tables detail the activity in the allowance for credit losses for the three and nine months ended September 30, 2024 and September 30, 2023, respectively: | | | | | | | | | | | | | | | | | | | | | | | | Commercial Real Estate | | Commercial Construction | | Commercial | | Residential Real Estate | | Consumer | | Unallocated | | Total | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses | (In Thousands) | | Three Months Ending September 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Beginning Balance - June 30, 2024 | $ | 6,017 | | $ | 227 | | $ | 525 | | $ | 5,438 | | $ | 39 | | $ | - | | $ | 12,246 | | Charge-offs | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Recoveries | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Provisions (credits) on loans | | (22) | | | 6 | | | (9) | | | (9) | | | (6) | | | - | | | (40) | | Ending Balance - September 30, 2024 | $ | 5,995 | | $ | 233 | | $ | 516 | | $ | 5,429 | | $ | 33 | | $ | - | | $ | 12,206 | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ending September 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Beginning Balance - December 31, 2023 | $ | 6,108 | | $ | 195 | | $ | 920 | | $ | 5,224 | | $ | 14 | | $ | - | | $ | 12,461 | | Charge-offs | | - | | | - | | | - | | | - | | | (11) | | | - | | | (11) | | Recoveries | | 240 | | | - | | | - | | | - | | | - | | | - | | | 240 | | Provisions (credits) on loans | | (353) | | | 38 | | | (404) | | | 205 | | | 30 | | | - | | | (484) | | Ending Balance - September 30, 2024 | $ | 5,995 | | $ | 233 | | $ | 516 | | $ | 5,429 | | $ | 33 | | $ | - | | $ | 12,206 | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses | | | | | | | | | | | | | | | | | | | | | | Three Months Ending September 30, 2023 | | | | | | | | | | | | | | | | | | | | | | Beginning Balance - June 30, 2023 | $ | 5,941 | | $ | 317 | | $ | 973 | | $ | 5,299 | | $ | 23 | | $ | 195 | | $ | 12,748 | | Charge-offs | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Recoveries | | - | | | - | | | - | | | 1 | | | - | | | - | | | 1 | | Provisions (credits) on loans | | (158) | | | 46 | | | (37) | | | 29 | | | 3 | | | (183) | | | (300) | | Ending Balance - September 30, 2023 | $ | 5,783 | | $ | 363 | | $ | 936 | | $ | 5,329 | | $ | 26 | | $ | 12 | | $ | 12,449 | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ending September 30, 2023 | | | | | | | | | | | | | | | | | | | | | | Beginning Balance - December 31, 2022 | $ | 5,113 | | $ | 200 | | $ | 1,289 | | $ | 4,960 | | $ | 13 | | $ | 874 | | $ | 12,449 | | January 1, 2023 adoption of ASU 2016-13 | | 492 | | | 77 | | | (172) | | | 522 | | | 19 | | | (750) | | | 188 | | Charge-offs | | - | | | - | | | - | | | - | | | - | | | - | | | - | | Recoveries | | - | | | - | | | - | | | 2 | | | - | | | - | | | 2 | | Provisions (credits) on loans | | 178 | | | 86 | | | (181) | | | (155) | | | (6) | | | (112) | | | (190) | | Ending Balance - September 30, 2023 | $ | 5,783 | | $ | 363 | | $ | 936 | | $ | 5,329 | | $ | 26 | | $ | 12 | | $ | 12,449 |
The following tables represent the allocation for credit losses and the related loan portfolio disaggregated based on impairment methodology at September 30, 2024 and December 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial Real Estate | | Commercial Construction | | Commercial | | Residential Real Estate | | Consumer | | Unallocated | | Total | | | | | | | | | | | | | | | | | | | | | | | (In Thousands) | September 30, 2024 | | | | | | | | | | | | | | | | | | | | | Allowance for Credit Losses | | | | | | | | | | | | | | | | | | | | | Ending Balance | $ | 5,995 | | $ | 233 | | $ | 516 | | $ | 5,429 | | $ | 33 | | $ | - | | $ | 12,206 | Ending balance: individually evaluated for impairment - real estate collateral dependent | $ | - | | $ | 19 | | $ | - | | $ | 82 | | $ | - | | $ | - | | $ | 101 | Ending balance: individually evaluated for impairment - non-collateral dependent | $ | - | | $ | - | | $ | 35 | | $ | - | | $ | - | | $ | - | | $ | 35 | Ending balance: collectively evaluated for impairment | $ | 5,995 | | $ | 214 | | $ | 481 | | $ | 5,347 | | $ | 33 | | $ | - | | $ | 12,070 | | | | | | | | | | | | | | | | | | | | | | Loans receivables: | | | | | | | | | | | | | | | | | | | | | Ending balance | $ | 534,004 | | $ | 19,886 | | $ | 37,185 | | $ | 666,491 | | $ | 518 | | | | | $ | 1,258,084 | Ending balance: individually evaluated for impairment - real estate collateral dependent | $ | 1,348 | | $ | 293 | | $ | 513 | | $ | 1,395 | | $ | - | | | | | $ | 3,549 | Ending balance: individually evaluated for impairment - non-collateral dependent | $ | - | | $ | - | | $ | 35 | | $ | - | | $ | - | | | | | $ | 35 | Ending balance: collectively evaluated for impairment | $ | 532,656 | | $ | 19,593 | | $ | 36,637 | | $ | 665,096 | | $ | 518 | | | | | $ | 1,254,500 | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | | | | | | | | | | | | | | | | | | | Allowance for Credit Losses | | | | | | | | | | | | | | | | | | | | | Ending Balance | $ | 6,108 | | $ | 195 | | $ | 920 | | $ | 5,224 | | $ | 14 | | $ | - | | $ | 12,461 | Ending balance: individually evaluated for impairment - real estate collateral dependent | $ | - | | $ | 22 | | $ | - | | $ | 152 | | $ | - | | $ | - | | $ | 174 | Ending balance: individually evaluated for impairment - non-collateral dependent | $ | - | | $ | - | | $ | 21 | | $ | - | | $ | - | | $ | - | | $ | 21 | Ending balance: collectively evaluated for impairment | $ | 6,108 | | $ | 173 | | $ | 899 | | $ | 5,072 | | $ | 14 | | $ | - | | $ | 12,266 | | | | | | | | | | | | | | | | | | | | | | Loans receivables: | | | | | | | | | | | | | | | | | | | | | Ending balance | $ | 539,034 | | $ | 16,840 | | $ | 33,951 | | $ | 663,127 | | $ | 565 | | | | | $ | 1,253,517 | Ending balance: individually evaluated for impairment - real estate collateral dependent | $ | 1,303 | | $ | 296 | | $ | - | | $ | 1,718 | | $ | - | | | | | $ | 3,317 | Ending balance: individually evaluated for impairment - non-collateral dependent | $ | - | | $ | - | | $ | 21 | | $ | - | | $ | - | | | | | $ | 21 | Ending balance: collectively evaluated for impairment | $ | 537,731 | | $ | 16,544 | | $ | 33,930 | | $ | 661,409 | | $ | 565 | | | | | $ | 1,250,179 |
Based on the guidance in ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, a loan modification or refinancing results in a new loan if the terms of the new loan are at least as favorable to the lender as the terms with customers with similar collection risks that are not refinancing or restricting their loans and the modification to the terms of the loan are more than minor. If a loan modification or refinancing does not result in a new loan, it is classified as a loan modification. There are additional disclosures for modification of loans with borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows. The disclosures are applicable to situations where there is principal forgiveness, interest rate reductions, other than insignificant payment delays, term extensions, or a combination of any of these items. If the Company modifies any loans to borrowers in financial distress that involves principal forgiveness, the amount of principal that is forgiven is charged off against the allowance for credit losses. The Company had no new loan modifications to borrowers experiencing financial difficulties in the three months ending September 30, 2024. The Company had no new loan modifications to borrowers experiencing financial difficulties in the three and nine months ending September 30, 2023, and there were no modifications to borrowers experiencing financial difficulties that were outstanding at September 30, 2023. The following table presents new loan modifications for credit concerns during the nine months ending September 30, 2024: | | | | | | | | | | | Number of Loans | | Pre-Modification Outstanding Balance | | Post- Modification Outstanding Balance | | | | | | | | | | | | (Dollars In Thousands) | Nine Months Ending September 30, 2024 | | | | | | | | | Residential real estate | | 1 | | $ | 79 | | $ | 79 | | | 1 | | $ | 79 | | $ | 79 |
The loan modification listed above was to a borrower experiencing financial distress and had no reserve recorded in the allowance for credit losses at September 30, 2024. The loan also was not past due at September 30, 2024. The modified home equity loan had an extended maturity date compared to the original loan, which represents less than 0.01% of the total residential real estate loans outstanding at September 30, 2024. There is no commitment to lend additional amounts on this modified loan. The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. There were $138 thousand of modifications to borrowers experiencing financial difficulties that were outstanding at September 30, 2024.
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