Note 5 - Credit Quality

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Financing Receivables [Text Block]

Note 5. Credit Quality

The Company uses a risk grading matrix to assign a risk grade to each loan in its portfolio. Loan risk ratings may be upgraded or downgraded to reflect current information identified during the loan review process. The general characteristics of each risk grade are as follows:

● Pass -- This grade is assigned to loans with acceptable credit quality and risk. The Company further segments this grade based on borrower characteristics that include capital strength, earnings stability, liquidity, leverage, and industry conditions.

● Special Mention -- This grade is assigned to loans that require an above average degree of supervision and attention. These loans have the characteristics of an asset with acceptable credit quality and risk; however, adverse economic or financial conditions exist that create potential weaknesses deserving of management’s close attention. If potential weaknesses are not corrected, the prospect of repayment may worsen.

● Substandard -- This grade is assigned to loans that have well defined weaknesses that may make payment default, or principal exposure, possible. These loans will likely be dependent on collateral liquidation, secondary repayment sources, or events outside the normal course of business to meet repayment terms.

● Doubtful -- This grade is assigned to loans that have the weaknesses inherent in substandard loans; however, the weaknesses are so severe that collection or liquidation in full is unlikely based on current facts, conditions, and values. Due to certain specific pending factors, the amount of loss cannot yet be determined.

● Loss -- This grade is assigned to loans that will be charged off or charged down when payments, including the timing and value of payments, are uncertain. This risk grade does not imply that the asset has no recovery or salvage value, but simply means that it is not practical or desirable to defer writing off, either all or a portion of, the loan balance even though partial recovery may be realized in the future.

The following table presents the recorded investment of the loan portfolio, by loan class and credit quality, as of the dates indicated:

	March 31, 2024
			Special
(Amounts in thousands)	Pass		Mention		Substandard		Doubtful		Loss		Total
Commercial loans
Construction, development, and other land	$	86,265	$	2,164	$	412	$	-	$	-	$	88,841
Commercial and industrial		198,318		2,128		3,084		-		-		203,530
Multi-family residential		190,417		3,485		286		-		-		194,188
Single family non-owner occupied		210,540		1,983		7,146		-		-		219,669
Non-farm, non-residential		858,461		15,272		13,522		-		-		887,255
Agricultural		13,982		3,786		1,995		-		-		19,763
Farmland		12,015		475		1,082		-		-		13,572
Consumer real estate loans
Home equity lines		83,592		544		3,045		-		-		87,181
Single family owner occupied		661,705		2,277		23,828		-		-		687,810
Owner occupied construction		5,848		-		-		-		-		5,848
Consumer and other loans
Consumer loans		108,713		2		2,072		-		-		110,787
Other		1,389		-		-		-		-		1,389
Total loans	$	2,431,245	$	32,116	$	56,472	$	-	$	-	$	2,519,833

	December 31, 2023
			Special
(Amounts in thousands)	Pass		Mention		Substandard		Doubtful		Loss		Total
Commercial loans
Construction, development, and other land	$	103,573	$	1,955	$	417	$	-	$	-	$	105,945
Commercial and industrial		207,034		2,097		2,719		-		-		211,850
Multi-family residential		184,565		3,522		295		-		-		188,382
Single family non-owner occupied		215,375		2,016		7,504		-		-		224,895
Non-farm, non-residential		866,711		15,240		12,599		-		-		894,550
Agricultural		15,944		3,878		1,847		-		-		21,669
Farmland		12,480		484		1,238		-		-		14,202
Consumer real estate loans
Home equity lines		83,769		546		3,311		-		-		87,626
Single family owner occupied		669,878		2,360		23,902		-		-		696,140
Owner occupied construction		8,445		-		-		-		-		8,445
Consumer and other loans
Consumer loans		114,725		4		2,362		-		-		117,091
Other		1,503		-		-		-		-		1,503
Total loans	$	2,484,002	$	32,102	$	56,194	$	-	$	-	$	2,572,298

The following tables present the amortized cost basis and current period gross write-offs of the loan portfolio, by year of origination, loan class, and credit quality, as of the date indicated:  

(Amounts in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Construction, development and other land
Pass	$	918	$	12,689	$	35,682	$	24,233	$	4,020	$	6,069	$	2,654	$	86,265
Special mention		-		1,973		-		-		117		74		-		2,164
Substandard		-		-		-		-		12		400		-		412
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total construction, development, and other land	$	918	$	14,662	$	35,682	$	24,233	$	4,149	$	6,543	$	2,654	$	88,841
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial and industrial
Pass	$	7,585	$	47,322	$	60,226	$	16,907	$	10,311	$	15,891	$	40,076	$	198,318
Special mention		-		-		218		118		-		1,691		101		2,128
Substandard		-		197		861		450		28		1,548		-		3,084
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total commercial and industrial	$	7,585	$	47,519	$	61,305	$	17,475	$	10,339	$	19,130	$	40,177	$	203,530
Current period gross write-offs	$	-	$	37	$	173	$	-	$	9	$	1	$	-	$	220
Multi-family residential
Pass	$	306	$	6,791	$	74,704	$	36,344	$	29,717	$	39,054	$	3,501	$	190,417
Special mention		-		-		-		-		-		3,485		-		3,485
Substandard		-		-		114		-		-		172		-		286
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total multi-family residential	$	306	$	6,791	$	74,818	$	36,344	$	29,717	$	42,711	$	3,501	$	194,188
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-farm, non-residential
Pass	$	8,635	$	82,850	$	239,174	$	149,473	$	112,692	$	257,164	$	8,473	$	858,461
Special mention		-		62		579		2,566		811		11,254		-		15,272
Substandard		-		1,142		297		1,944		680		9,317		142		13,522
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total non-farm, non-residential	$	8,635	$	84,054	$	240,050	$	153,983	$	114,183	$	277,735	$	8,615	$	887,255
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural
Pass	$	108	$	4,380	$	3,850	$	2,108	$	463	$	2,360	$	713	$	13,982
Special mention		-		-		271		178		7		3,330		-		3,786
Substandard		-		397		23		101		117		1,357		-		1,995
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total agricultural	$	108	$	4,777	$	4,144	$	2,387	$	587	$	7,047	$	713	$	19,763
Current period gross write-offs	$	-	$	82	$	60	$	-	$	-	$	-	$	-	$	142
Farmland
Pass	$	389	$	1,370	$	1,213	$	1,517	$	889	$	5,683	$	954	$	12,015
Special mention		-		-		-		102		-		373		-		475
Substandard		-		-		-		-		-		1,082		-		1,082
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total farmland	$	389	$	1,370	$	1,213	$	1,619	$	889	$	7,138	$	954	$	13,572
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

(Amounts in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Home equity lines
Pass	$	4	$	1	$	947	$	84	$	72	$	3,659	$	78,825	$	83,592
Special mention		-		-		-		-		-		44		500		544
Substandard		-		-		69		-		25		1,842		1,109		3,045
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total home equity lines	$	4	$	1	$	1,016	$	84	$	97	$	5,545	$	80,434	$	87,181
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	15	$	15
Single family Mortgage
Pass	$	4,576	$	51,915	$	164,857	$	217,495	$	186,126	$	246,880	$	396	$	872,245
Special mention		-		-		-		460		97		3,703		-		4,260
Substandard		-		235		845		1,510		1,222		27,162		-		30,974
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total single family owner and non-owner occupied	$	4,576	$	52,150	$	165,702	$	219,465	$	187,445	$	277,745	$	396	$	907,479
Current period gross write-offs	$	-	$	-	$	-	$	31	$	-	$	20	$	-	$	51
Owner occupied construction
Pass	$	287	$	3,416	$	1,575	$	235	$	-	$	335	$	-	$	5,848
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total owner occupied construction	$	287	$	3,416	$	1,575	$	235	$	-	$	335	$	-	$	5,848
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans
Pass	$	7,066	$	30,143	$	37,742	$	17,711	$	6,302	$	3,167	$	7,971	$	110,102
Special mention		-		-		-		1		-		-		1		2
Substandard		-		278		914		367		117		345		51		2,072
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total consumer loans	$	7,066	$	30,421	$	38,656	$	18,079	$	6,419	$	3,512	$	8,023	$	112,176
Current period gross write-offs	$	282	$	414	$	746	$	348	$	60	$	48	$	122	$	2,020

(Amounts in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Total loans
Pass	$	29,874	$	240,877	$	619,970	$	466,107	$	350,592	$	580,262	$	143,563	$	2,431,245
Special mention		-		2,035		1,068		3,425		1,032		23,954		602		32,116
Substandard		-		2,249		3,123		4,372		2,201		43,225		1,302		56,472
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total loans	$	29,874	$	245,161	$	624,161	$	473,904	$	353,825	$	647,441	$	145,467	$	2,519,833
Current period gross write-offs	$	282	$	533	$	979	$	379	$	69	$	69	$	137	$	2,448

(Amounts in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Construction, development
and other land
Pass	$	12,379	$	54,752	$	23,328	$	4,121	$	2,700	$	3,874	$	2,419	$	103,573
Special Mention		1,737		-		-		139		-		79		-		1,955
Substandard		-		-		-		-		175		242		-		417
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total construction, development, and other land	$	14,116	$	54,752	$	23,328	$	4,260	$	2,875	$	4,195	$	2,419	$	105,945
Current period gross write-offs	$	-	$	-	$	-	$	-	$	13	$	-	$	-	$	13
Commercial and industrial
Pass	$	53,619	$	64,380	$	19,477	$	11,538	$	5,717	$	11,775	$	40,528	$	207,034
Special Mention		-		229		11		-		349		1,408		100		2,097
Substandard		51		744		276		86		926		636		-		2,719
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total commercial and industrial	$	53,670	$	65,353	$	19,764	$	11,624	$	6,992	$	13,819	$	40,628	$	211,850
Current period gross write-offs	$	66	$	168	$	201	$	51	$	32	$	66	$	-	$	584
Multi-family residential
Pass	$	6,753	$	67,484	$	36,621	$	30,021	$	3,280	$	36,982	$	3,424	$	184,565
Special Mention		-		-		-		-		-		3,522		-		3,522
Substandard		-		-		-		-		-		295		-		295
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total multi-family residential	$	6,753	$	67,484	$	36,621	$	30,021	$	3,280	$	40,799	$	3,424	$	188,382
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-farm, non-residential
Pass	$	83,420	$	234,607	$	151,433	$	114,974	$	53,466	$	217,034	$	11,777	$	866,711
Special Mention		65		583		2,590		819		-		11,132		51		15,240
Substandard		1,175		238		1,968		690		3,175		5,143		210		12,599
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total non-farm, non-residential	$	84,660	$	235,428	$	155,991	$	116,483	$	56,641	$	233,309	$	12,038	$	894,550
Current period gross write-offs	$	-	$	8	$	-	$	-	$	-	$	2	$	-	$	10
Agricultural
Pass	$	5,004	$	4,215	$	2,352	$	625	$	674	$	2,094	$	980	$	15,944
Special Mention		28		276		184		8		90		3,292		-		3,878
Substandard		157		166		50		28		1,188		258		-		1,847
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total agricultural	$	5,189	$	4,657	$	2,586	$	661	$	1,952	$	5,644	$	980	$	21,669
Current period gross write-offs	$	-	$	59	$	-	$	9	$	14	$	8	$	-	$	90
Farmland
Pass	$	1,380	$	1,237	$	1,557	$	912	$	745	$	5,766	$	883	$	12,480
Special Mention		-		-		103		-		-		381		-		484
Substandard		-		-		-		-		-		1,238		-		1,238
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total farmland	$	1,380	$	1,237	$	1,660	$	912	$	745	$	7,385	$	883	$	14,202
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

(Amounts in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Home equity lines
Pass	$	9	$	962	$	86	$	73	$	68	$	3,800	$	78,771	$	83,769
Special Mention		-		-		-		-		-		45		501		546
Substandard		-		12		-		27		102		1,853		1,317		3,311
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total home equity lines	$	9	$	974	$	86	$	100	$	170	$	5,698	$	80,589	$	87,626
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	227	$	227
Single family Mortgage
Pass	$	50,826	$	164,974	$	221,352	$	191,156	$	44,974	$	211,540	$	431	$	885,253
Special Mention		-		-		465		98		108		3,705		-		4,376
Substandard		236		555		1,464		1,381		1,515		26,255		-		31,406
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total single family owner and non-owner occupied	$	51,062	$	165,529	$	223,281	$	192,635	$	46,597	$	241,500	$	431	$	921,035
Current period gross write-offs	$	-	$	-	$	47	$	-	$	-	$	194	$	-	$	241
Owner occupied construction
Pass	$	3,620	$	4,232	$	240	$	-	$	21	$	332	$	-	$	8,445
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total owner occupied construction	$	3,620	$	4,232	$	240	$	-	$	21	$	332	$	-	$	8,445
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans
Pass	$	31,243	$	43,675	$	20,672	$	7,710	$	3,214	$	1,026	$	8,688	$	116,228
Special Mention		-		-		3		-		-		-		1		4
Substandard		338		820		590		198		157		212		47		2,362
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total consumer loans	$	31,581	$	44,495	$	21,265	$	7,908	$	3,371	$	1,238	$	8,736	$	118,594
Current period gross write-offs	$	1,238	$	3,594	$	1,852	$	518	$	196	$	77	$	185	$	7,660

(Amounts in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Total loans
Pass	$	248,253	$	640,518	$	477,118	$	361,130	$	114,859	$	494,223	$	147,901	$	2,484,002
Special mention		1,830		1,088		3,356		1,064		547		23,564		653		32,102
Substandard		1,957		2,535		4,348		2,410		7,238		36,132		1,574		56,194
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total loans	$	252,040	$	644,141	$	484,822	$	364,604	$	122,644	$	553,919	$	150,128	$	2,572,298
Current period gross write-offs	$	1,304	$	3,829	$	2,100	$	578	$	255	$	347	$	412	$	8,825

The Company generally places a loan on nonaccrual status when it is 90 days or more past due.  The following table presents nonaccrual loans, by loan class, as of the dates indicated:

	March 31, 2024						December 31, 2023
(Amounts in thousands)	No Allowance		With an Allowance		Total		No Allowance		With an Allowance		Total
Commercial loans
Construction, development, and other land	$	166	$	-	$	166	$	172	$	—	$	172
Commercial and industrial		1,333		-		1,333		1,438		—		1,438
Multi-family residential		174		-		174		183		—		183
Single family non-owner occupied		978		-		978		832		—		832
Non-farm, non-residential		1,931		1,140		3,071		1,271		1,173		2,444
Agricultural		1,499		-		1,499		1,558		—		1,558
Farmland		125		-		125		123		—		123
Consumer real estate loans
Home equity lines		1,229		-		1,229		1,335		—		1,335
Single family owner occupied		9,392		-		9,392		9,365		—		9,365
Owner occupied construction		-		-		-		—		—		—
Consumer and other loans
Consumer loans		1,650		-		1,650		1,906		—		1,906
Total nonaccrual loans	$	18,477	$	1,140	$	19,617	$	18,183	$	1,173	$	19,356

Loans are considered past due when either principal or interest payments become contractually delinquent by 30 days or more. The Company’s policy is to discontinue the accrual of interest, if warranted, on loans based on the payment status, evaluation of the related collateral, and the financial strength of the borrower. Loans that are 90 days or more past due are placed on nonaccrual status. Management may elect to continue the accrual of interest when the loan is well secured and in process of collection. When interest accruals are discontinued, interest accrued and not collected in the current year is reversed from income, and interest accrued and not collected from prior years is charged to the allowance for credit losses. Nonaccrual loans may be returned to accrual status when all principal and interest amounts contractually due, including past due payments, are brought current; the ability of the borrower to repay the obligation is reasonably assured; and there is generally a period of at least six months of repayment performance by the borrower in accordance with the contractual terms. There was no material nonaccrual loan interest recognized in income during the first quarter of  2024 or  2023.  

The following tables presents the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 days or more past due are included in the applicable delinquency category: 

	March 31, 2024
													Amortized Cost of
	30 - 59 Days		60 - 89 Days		90+ Days		Total		Current		Total		> 90 Days Accruing
(Amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Loans		Loans		No Allowance
Commercial loans
Construction, development, and other land	$	23	$	6	$	23	$	52	$	88,789	$	88,841	$	-
Commercial and industrial		1,000		435		439		1,874		201,656		203,530		-
Multi-family residential		112		-		114		226		193,962		194,188		-
Single family non-owner occupied		688		-		219		907		218,762		219,669		-
Non-farm, non-residential		1,896		-		955		2,851		884,404		887,255		-
Agricultural		417		272		246		935		18,828		19,763		-
Farmland		123		2		-		125		13,447		13,572		-
Consumer real estate loans
Home equity lines		551		159		430		1,140		86,041		87,181		-
Single family owner occupied		5,204		1,841		3,780		10,825		676,985		687,810		-
Owner occupied construction		-		-		-		-		5,848		5,848		-
Consumer and other loans
Consumer loans		2,916		927		568		4,411		106,376		110,787		-
Other		-		-		-		-		1,389		1,389		-
Total loans	$	12,930	$	3,642	$	6,774	$	23,346	$	2,496,487	$	2,519,833	$	-

	December 31, 2023
													Amortized Cost of
	30 - 59 Days		60 - 89 Days		90+ Days		Total		Current		Total		> 90 Days Accruing
(Amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Loans		Loans		No Allowance
Commercial loans
Construction, development, and other land	$	38	$	6	$	23	$	67	$	105,878	$	105,945	$	—
Commercial and industrial		1,232		766		390		2,388		209,462		211,850		—
Multi-family residential		115		68		—		183		188,199		188,382		—
Single family non-owner occupied		777		455		232		1,464		223,431		224,895		—
Non-farm, non-residential		617		229		382		1,228		893,322		894,550		—
Agricultural		22		56		217		295		21,374		21,669		—
Farmland		15		—		—		15		14,187		14,202		—
Consumer real estate loans
Home equity lines		639		343		534		1,516		86,110		87,626		—
Single family owner occupied		6,108		2,831		3,519		12,458		683,682		696,140		—
Owner occupied construction		—		—		—		—		8,445		8,445		—
Consumer and other loans
Consumer loans		4,390		1,440		1,087		6,917		110,174		117,091		—
Other		—		—		—		—		1,503		1,503		—
Total loans	$	13,953	$	6,194	$	6,384	$	26,531	$	2,545,767	$	2,572,298	$	—

ASC 326 prescribes that when an entity determines foreclosure is probable, the expected credit loss can be measured based on the fair value of the collateral. As a practical expedient, an entity may use the fair value as of the reporting date when recording the net carrying amount of the asset. For the collateral dependent asset ("CDA") a credit loss expense is recorded for loan amounts in excess of fair value of the collateral.  The table below summarizes collateral dependent loans, where foreclosure is probable, by type of collateral, and the extent to which they are collateralized during the period.  

	March 31, 2024							December 31, 2023
(Amounts in thousands)	Balance		Collateral Coverage		%			Balance		Collateral Coverage		%
Commercial Real Estate
Other	$	1,140	$	825		72.37	%	$	1,173	$	825		70.33	%
Total collateral dependent loans	$	1,140	$	825		72.37	%	$	1,173	$	825		70.33	%

The Company may make concessions in interest rates, loan terms and/or amortization terms when restructuring loans for borrowers experiencing financial difficulty.  Effective, January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. The amendments eliminated TDR accounting guidance for issuers that adopted ASU 2016-13, created a single loan modification accounting model, and clarified disclosure requirements for loan modifications and write-offs.  Presented below are the amortized cost basis and percentage of loan class for loan modifications made to borrowers experiencing financial difficulty by loan class, concession type, and financial effect as of the dates indicated:

	Payment Delays
	Amortized Cost Basis		% of Total Class of
	March 31, 2024		Financing Receivable			Financial Effect
(Amounts in thousands)
Non farm, non residential property	$	662		0.08	%	Deferred 6 months of interest to loan maturity
Single family owner occupied		540		0.08	%	Deferred $66 thousand in principal to loan maturity
Single family non owner occupied		87		0.04	%	Deferred 6 months of interest to loan maturity
Commercial & industrial		161		0.08	%	Deferred $8 thousand in principal to loan maturity
Total	$	1,450
	Term Extensions
	Amortized Cost Basis		% of Total Class of
	March 31, 2024		Financing Receivable			Financial Effect
(Amounts in thousands)
Consumer	$	5		0.01	%	Extended term from 60 to 84 months
Total	$	5
	Principal Forgiveness
	Amortized Cost Basis		% of Total Class of
	March 31, 2024		Financing Receivable			Financial Effect
(Amounts in thousands)
Single family owner occupied	$	3		0.00	%	Reduced amortized cost basis by $13 thousand
Total	$	3
	Term Extension and Rate Reduction
	Amortized Cost Basis		% of Total Class of
	March 31, 2024		Financing Receivable			Financial Effect
(Amounts in thousands)
Single family owner occupied	$	719		0.11	%	Reduced interest income and extended time to recover principal.
Total	$	719

	Payment Delays
	Amortized Cost Basis		% of Total Class of
	December 31, 2023		Financing Receivable			Financial Effect
(Amounts in thousands)
Non farm, non residential property	$	662		0.07	%	Deferred 6 months of interest to loan maturity
Single family owner occupied		548		0.08	%	Deferred $66 thousand in principal to loan maturity
Single family non owner occupied		89		0.04	%	Deferred 6 months of interest to loan maturity
Commercial & industrial		171		0.08	%	Deferred $8 thousand in principal to loan maturity
Total	$	1,470
	Term Extensions
	Amortized Cost Basis		% of Total Class of
	December 31, 2023		Financing Receivable			Financial Effect
(Amounts in thousands)
Consumer	$	6		0.01	%	Extended term from 60 to 84 months
Total	$	6
	Principal Forgiveness
	Amortized Cost Basis		% of Total Class of
	December 31, 2023		Financing Receivable			Financial Effect
(Amounts in thousands)
Single family owner occupied	$	5		0.00	%	Reduced amortized cost basis by $13 thousand
Total	$	5
	Term Extension and Rate Reduction
	Amortized Cost Basis		% of Total Class of
	December 31, 2023		Financing Receivable			Financial Effect
(Amounts in thousands)
Single family owner occupied	$	565		0.08	%	Reduced interest income and extended time to recover principal
Total	$	565

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 modified loans (or portions of a loan) deemed uncollectible as of  March 31, 2024, or  December 31, 2023.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.  The following table depicts the performance of loans that have been modified in the last three months:

	March 31, 2024
	Payment Status (Amortized Cost Basis)
	Current		30-89 Days Past Due		90+ Days Past Due
(Amounts in thousands)
Non farm, non residential property	$	662	$	-	$	-
Single family owner occupied		1,012		250		-
Single family non owner occupied		87		-		-
Commercial & Industrial		161		-		-
Consumer		5		-		-
Total	$	1,927	$	250	$	-
	December 31, 2023
	Payment Status (Amortized Cost Basis)
	Current		30-89 Days Past Due		90+ Days Past Due
(Amounts in thousands)
Non farm, non residential	$	662	$	-	$	-
Single family owner occupied		864		254		-
Single family non owner occupied		89		-		-
Commercial & industrial		171		-		-
Consumer		6		-		-
Total	$	1,792	$	254	$	-

 

The following table provides information about other real estate owned (“OREO”), which consists of properties acquired through foreclosure, as of the dates indicated:

	March 31, 2024		December 31, 2023
(Amounts in thousands)
OREO	$	374	$	192
OREO secured by residential real estate	$	374	$	192
Residential real estate loans in the foreclosure process(1)	$	2,657	$	1,895

(1) The recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction