Note 4 - Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

(4)

Allowance for Credit Losses

Activity in the ACL is summarized as follows:

	*Loans*
	*Real Estate Mortgage Loans*
(in thousands)	*Commercial*			*Residential and Home Equity*			*Construction*			*Commercial Loans*			*Consumer and Other Loans*			*Total Funded Loans*			*Unfunded Commitments*		*Total*
*Three Month Period Ended June 30, 2024*
Beginning balance	$	1,736		$	2,118		$	599		$	1,325		$	18		$	5,796		$	-	$	5,796
Credit loss (income) expense		(160	)		168			22			221			35			286			158		444
Charge-offs		-			-			-			(765	)		(38	)		(803	)		-		(803	)
Recoveries		-			-			-			1			2			3			-		3
Ending balance	$	1,576		$	2,286		$	621		$	782		$	17		$	5,282		$	158	$	5,440

*Three Month Period Ended June 30, 2023*
Beginning balance	$	1,606		$	1,742		$	540		$	895		$	19		$	4,802		$	-	$	4,802
Credit loss (income) expense		(20	)		69			350			(124	)		2			277			48		325
Charge-offs		-			-			(346	)		-			(7	)		(353	)		-		(353	)
Recoveries		-			-			-			-			3			3			-		3
Ending balance	$	1,586		$	1,811		$	544		$	771		$	17		$	4,729		$	48	$	4,777


*Six Month Period Ended June 30, 2024*
Beginning balance	$	1,713		$	2,034		$	559		$	1,272		$	31		$	5,609		$	-	$	5,609
Credit loss (income) expense		(137	)		252			62			274			46			497			158		655
Charge-offs		-			-			-			(765	)		(65	)		(830	)		-		(830	)
Recoveries		-			-			-			1			5			6			-		6
Ending balance	$	1,576		$	2,286		$	621		$	782		$	17		$	5,282		$	158	$	5,440

*Six Month Period Ended June 30, 2023*
Beginning balance	$	2,303		$	2,607		$	922		$	1,223		$	90		$	7,145			-	$	7,145
Impact of adopting ASC 326		(740	)		(892	)		(403	)		(504	)		(67	)		(2,606	)		-		(2,606	)
Credit loss expense		23			96			371			19			11			520			48		568
Charge-offs		-			-			(346	)		-			(22	)		(368	)		-		(368	)
Recoveries		-			-			-			33			5			38			-		38
Ending balance	$	1,586		$	1,811		$	544		$	771		$	17		$	4,729		$	48	$	4,777

Prime Meridian Holding Co 10-Q