NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements
NOTE 4. LOANS( Continued)
modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, and interest rate reduction.
The following table shows the amortized cost basis as of December 31, 2025, of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of loans and type of concessions granted, and describes the financial effect of the modifications made to borrowers experiencing financial difficulty. There were no modified loans to borrowers experiencing financial difficulty as of December 31, 2024.
1-4 Family- Closed- First Liens |
Amortized Cost Basis $ 266,668 |
% of total Loan Type 0.257 % |
Financial Effect
New loan at a rate of 5.25 % which is less than the rate the borrower would qualify for of 10 %.
|
Other Consumer Loans Total
44,826 $ 311,494
0.673 % Rate at 0 % on repossessed vehicles
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. As of December 31, 2025, there were no modified loans with payment defaults.
Unfunded Commitments The Company maintains a separate reserve for credit losses on off-balance-sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life, utilizing the same models and approaches for the Company ' s other loan portfolio segments described above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time.
The following table presents the balance and activity in the allowance for credit losses for unfunded commitments for the year ended, December 31 2024 and 2025.
Balance, January 1, 2024 Provision for Unfunded Commitments Balance, December 31, 2024 Initial Allowance from Acquisition Balance, December 31, 2025
$ 643,536( 75,000) 568,536
3,408 $ 571,944
2025 NWSB Annual Report | 43