27 unchanged sentences
The Bank’s market area has historically exhibited relatively stable economic conditions.
−Removed: Economic activity increased slightly in the fourth quarter of 2023.
+Added: Economic activity grew modestly in the fourth quarter of 2024.
Demand for goods and services improved as steady sales were recorded during the fourth quarter 2024.
2 unchanged sentences
Reported unemployment levels in December 2024 ranged from 2.9% to 4.6% in the four primary counties served by the Company.
−Removed: These levels decreased from the December 2022 unemployment range of 2.9% to 4.0%.
+Added: These levels increased from the December 2023 unemployment range of 2.1% to 3.3%.
Labor demand remained solid as competition for workers has put upward pressure on labor costs.
−Removed: The local housing market continues to be strong with extremely low inventory levels.
−Removed: Residential construction has softened again year over year with higher interest rates and building costs reducing demand, while nonresidential construction activity has improved since the prior year.
−Removed: Core deposit balances remain flat, and customers continue to move funds into higher yielding interest-bearing accounts.
−Removed: Commercial loan demand remained strong during 2023, residential mortgage demand was noticeably curtailed by effects of the interest rate environment, while other consumer loan demand was steady but began to soften during the fourth quarter.
+Added: The local housing market shows continued strength with low inventory levels.
+Added: Residential mortgage activity, including home equity and construction loans have increased steadily with stable interest rates and resolution of uncertainty after the election as the main factors increasing demand.
+Added: Nonresidential construction activity has also improved since the prior year.
+Added: Core deposits decreased slightly, as customers continue to move funds into higher yielding interest-bearing accounts.
+Added: Commercial loan demand, including commercial real estate, increased slightly during 2024, while other consumer loan demand softened.
Certain risks are involved in providing loans, including, but not limited to, the borrowers’ ability and willingness to repay the debt.
4 unchanged sentences
In addition, any loan over $100,000 identified as a problem credit by management and/or the external loan review consultants is assigned to the Bank’s “loan watch list,” has a written action plan created specifically for the loan relationship and is subject to ongoing review at least quarterly by the Bank’s credit department and the assigned loan officer to ensure appropriate action is taken if deterioration continues.
+Added: These "watch list action plans" are reviewed with the Executive Committee of the Board quarterly.
Commercial loan rates are variable and fixed and include operating lines of credit and term loans made to businesses, primarily based on their ability to repay the loan from the cash flow of the business.
20 unchanged sentences
These loans typically bear interest at variable rates and require minimum monthly payments of the accrued interest.
−Removed: Installment loans to individuals include unsecured loans and loans secured by recreational vehicles (“RV’s”), automobiles, and other consumer assets.
+Added: Installment loans to individuals include unsecured loans and loans secured by recreational vehicles (“RVs”), automobiles, and other consumer assets.
Consumer loans for the purchase of new RV’s and new automobiles generally do not exceed 125% of Dealer Invoice on RV’s or 110% of the Manufacturer’s Suggested Retail Price (MSRP) of an automobile.
156 unchanged sentences
Community Reinvestment Act
−Removed: The Community Reinvestment Act (“CRA”) requires depository institutions to assist in meeting the credit needs of their market areas, including low- and moderate-income areas, consistent with safe and sound banking practice.
+Added: CRA requires depository institutions to assist in meeting the credit needs of their market areas, including low- and moderate-income areas, consistent with safe and sound banking practice.
Under this Act, each institution is required to adopt a statement for each of its market areas describing the depository institution’s efforts to assist in its community’s credit needs.
3 unchanged sentences
In addition, all subsidiary banks of a financial holding company must maintain a satisfactory or outstanding rating in order for the financial holding company to avoid limitations on its activities.
−Removed: The Bank received a rating of “satisfactory" in its most recent CRA examination.
+Added: The Bank received a rating of “outstanding" in its most recent CRA examination.
On October 24, 2023, the federal banking agencies, including the Federal Reserve Board, issued a final rule designed to strengthen and modernize the regulations implementing the CRA.
85 unchanged sentences
The weighted average yields are calculated using amortized cost of investments and are based on coupon rates for securities purchased at par value, and on effective interest rates considering amortization or accretion if securities were purchased at a premium or discount.
−Removed: The weighted average yield on tax-exempt obligations is presented on a tax-equivalent basis based on the Company’s marginal federal income tax rate of 21%.
+Added: The weighted average yield on tax-exempt obligations is presented on a tax-equivalent basis using the Company’s marginal federal income tax rate of 21%.
Loan Portfolio
20 unchanged sentences
Consumer indirect
−Removed: Summary of Loan Loss Experience
+Added: Summary of Credit Loss Experience
The following schedule presents an analysis of net charge-offs (recoveries) to average loans, and related ratios for the years ended:
4 unchanged sentences
Net (Charge-offs) Recoveries as a % of Average Loans
+Added: Net (Charge-offs) Recoveries
+Added: Average Loans
+Added: Net (Charge-offs) Recoveries as a % of Average Loans
Commercial and industrial
5 unchanged sentences
Consumer indirect
−Removed: December 31, 2022
−Removed: (Dollars in thousands)
−Removed: Net (Charge-offs) Recoveries
−Removed: Average Loans
−Removed: Net (Charge-offs) Recoveries as a % of Average Loans
−Removed: Commercial real estate
−Removed: Residential real estate
−Removed: Construction & land development
The following schedule is a breakdown of the allowance for credit losses allocated by type of loan and related ratios.
3 unchanged sentences
December 31, 2024
+Added: December 31, 2023
Commercial and industrial
5 unchanged sentences
Consumer indirect
−Removed: Allocation of the Allowance for Loan Losses
−Removed: (Dollars in thousands)
−Removed: December 31, 2022
−Removed: Commercial real estate
−Removed: Residential real estate
−Removed: Construction & land development
The following is a schedule of average deposit amounts and average rates paid on each category for the periods indicated:
21 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.