NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements
NOTE 4. LOANS( Continued)
Collateral Dependent Disclosures
The Company designates individually evaluated loans on nonaccrual status as collateral-dependent loans, as well as other loans that management of the Company designates as having higher risk. Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan ' s collateral, which is adjusted for liquidation costs / discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required.
The following tables presents an analysis of collateral-dependent loans of the Company:
Real Estate Loans 1-4 Family- Closed- First Liens 1-4 Family- Closed- JR Liens Sec. by Owner-Occ Nonfarm No
Commercial Commercial and Industrial Loans
Installment Automobile Other Consumer Loans Total
Real Estate Loans Sec. by Owner-Occ Nonfarm No
Commercial
Residential Properties
$ 139,433 37,809
-
$-
-- 2,543,255
1,617,414-- 1,617,414
---
Business Assets |
Commercial
Property
|
Other |
Total |
December 31, 2025 |
$- $---
32,524-- 18,109 18,109
$ 177,242 $ 1,617,414 $ 2,543,255 $ 50,633
December 31, 2024
- 32,524
$ 139,433- 37,809
2,543,255
$ 4,388,544
$- $- $ 2,466,841 $- $ 2,466,841
Commercial and Industrial Loans
- 358,801-- 358,801
Total $- $ 358,801 $ 2,466,841 $- $ 2,825,642
-
2025 NWSB Annual Report | 41