NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES, continued Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pa lal oy -wo af fngceenf eorrapl l oy sasri be l set al ot ea dn al ot st sheesi .r oL uo tasnt acnodmi nmg i tumn pe na itdf epersi nacni pd acl ebrat al ai nn cdeisr eacdtj ul osat endc foosrt su na reea rnnoet ddienf ceor rme ed aans dt ht he ye represent an insignificant item. For loans, interest is accrued daily on the outstanding balance. The methods collectively produce a result that is nd iostcmo nattienrui ae ldl ya dt itfhf ee rtei mn tef rt oh me l ot haen liesv9e0l ydi ae yl ds mp aestthdoude. uTnhlee sa sc ct rhueacl roefdiint ties rwe setl lo- snemc uorretdg aagnedainndpcroomc ems seor cf icaol llloe ac tni so ni s. Po fafsat tdaune esat ar ltiuesr idsabt ea si ef dc ool lne cctoino tnr aocf tpurai lntcei pr ma lsoorfi tnht ee rleosatni.s Icno anlsl icdaesreesd, ldooaunbs taf ur el . p l a c e d o n n o n a c c r u a l o r c h a r g e d - All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against iqnut ae lri ef ys itnign cf oormree.t uTr nh et oi natcecrreusat l .o nL otahne ss ea rl eo arne st uirsnaecdc ot ou na ct ec dr ufaol rs toant ut sh ew chaesnh abl latshi se op rr i cnoc si pt arleacno dv ei rnyt emr eestthaomd ,ouunnttisl contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses: With the adoption of ASU 2016-13 on January 1, 2023, an allowance for credit lAoSsUs e2s 0i 1s 6e-s1t 3a br lei ps hl aecde du pt hoen porrei vg ii on ua tsi po nr ofboarbal yl l i lnocaunrsr et hd rloous sg hm ao dperlo, vwi shiioc nh if no cr ocrrpeodri at tleods soensl yc hkanrogwe dn itno f oe ra mr nai tni go sn. ae xs poef ct theedbcarl ea dn icte l os hs se ee st di naht ee .rTe nh et ienx pt he ec t Ce do mc rpeadni ty 'l so srse lme voadnetl if si nbaanscei da l oans ms eat sn. aTg he emr ee nat r' se bt ewsot ecsotmi mpaotne eonf tlsi f oe tf i tmh ee ai nl ldoiwv iadnucael l yf oer vcarl euda itte dl o lsosaens :s rt ehsaet rdv oe snoont fpi to wo l ietdh i lno aa nps osrht faorliino gs er igsmk ecnhta. rFaocrt elroias nt isc,s e(xppoercttfeodl i oc rseedgi mt leons tsse)s aanr de teyxppiecrailel yn cees, ttihme actue rdr eunsti nc rge dq iut aqnut ai tl ai ttyi voef tmh ee tphoordt sf o tl ihoa at s cwo ne sl li da es rs uap pv oa rr ti ea tbyl e of fo rf ea cc at os trss osf utchhe ea cs o hn iosmt oi rci coaul t l looosks oa cvcerrutehde lbi af es eodf tohne ltohaen d. Wi f f he reennmc easn abgeet wmeeennt dt he tee rl oma inn ebsa tl ahna ct ef oarne dc l o1s)utrheei svpa rl uoeb aobf l ec o, el lxapt ee rc at el ,di fc rseudciht lloosasness aa rr ee coor n3s )i dtehree dl ot ao nb' se cvoalllua et e ar as l odbe speernvdaebnl et ai nn dt ihne t hs ee cpornodc ae rsys omf ac or kl leetc. t iAodnj, u2s)t mt heenpt rs e as reen tmv aa lduee foof rf usteul rl ien cg a cs oh sftl so,wass, aalplopwroapnrciaet. eS.uWbsheqenuemntarneacgoevmereinest , bifealineyv,easrethceredloiatend itso nthoet aclolollwecatnibcele. , the loan is charged off against the Allowance factors and overall size of the allowance may change from period to period based on management's ar es vs ei esws mt he ne ta al lno dw tahnec er ef ol art icvree dwi te li og shst es sg. iTvhe ensteoaegaecnhc ifeasc tmo ra.yI nr eaqdudi ri tei ot hne, vBaarni ok ut so rme ga uk el aat od rdyi tai ogne sn ct oi etshpe earl il oo dwi ac anlcl ye ftoimr ecroefdtihteloirsesexsambainsaetdioonn. their judgments of collectibility supported by information available to them at the Impaired Loans : Identified loans where a portion of the outstanding principal and interest is at risk of collection bd ae st eerdmoinn etsh et hceu rsriegnnti fmi c aa nr kc ee t ovfa lpuaey omf etnhte dc oe ll al aytse raanl ds epc ua yr imn ge nt th es hc or er dt fiat l lasr eo nc oan sci da seer -ebdy i-mc aps ae i rbeads. i sM, taankai gnegmi ne nt ot cr eo anssoi dnes r faot ri otnh ea l ld oe fl atyh, et hc ier cbuomr rsot awnecre’ ss spur ri or ro upnady imn ge nt ht er el oc oa nr da, nadn db ot hr reo awme ro, ui nn ct l ou fd ti nh ge tshheo rl et fnagl lt hi no fr et hl aet idoenl at yo, tt hh ee pl orai nn cs i bp ya leai tnhde ri nt theer epsrte soewnet dv. a lIume poaf i er mx peenctt ei sd mf uet ua sr ue rceads ho nf l oawl os adni sbc oy ul on at endbaatsti hs ef ol or acno’ms emf feercct ii av le ai nn dt e cr eo sntsrt ra ut ec,t ti oh ne loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.
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