Loans
Loans totaled $133.5 million at June 30, 2023, up $803,000, or less than 1%, from March 31, 2023. During the second quarter of 2023, commercial and industrial loan growth was partially offset by net declines in our real estate loan portfolio. The decline in construction and land loans was primarily driven by the conversion of construction loans to permanent financing.
The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.
| | | | | | | | | | | | |
(Dollars in thousands) | | 6/30/2023 | | 3/31/2023 | | Increase (Decrease) |
Real estate loans | | | | | | | | | | | | |
One- to four-family residential | | $ | 85,655 | | $ | 86,464 | | $ | (809) | | (1) | % |
Commercial real estate | | | 19,175 | | | 19,303 | | | (128) | | (1) | |
Construction and land | | | 4,620 | | | 6,536 | | | (1,916) | | (29) | |
Multi-family residential | | | 3,094 | | | 3,146 | | | (52) | | (2) | |
Total real estate loans | | | 112,544 | | | 115,449 | | | (2,905) | | (3) | |
Other loans | | | | | | | | | | | | |
Commercial and industrial | | | 17,609 | | | 14,109 | | | 3,500 | | 25 | |
Consumer | | | 3,340 | | | 3,132 | | | 208 | | 7 | |
Total other loans | | | 20,949 | | | 17,241 | | | 3,708 | | 22 | |
Total loans | | $ | 133,493 | | $ | 132,690 | | $ | 803 | | 1 | % |
The majority of the Company’s loan portfolio consists of real estate loans secured by properties in our local market area, the Acadiana region of south Louisiana. Loans secured by one- to four-family residential properties accounted for 64% of total loans and commercial real estate loans accounted for 14% of total loans at June 30, 2023. Our commercial real estate loans are generally secured by retail and industrial use buildings, hotels, strip shopping centers and other properties used for commercial purposes. Approximately 66% of our real estate loans have adjustable rates and, of our total real estate loans, approximately $55.1 million, or 49%, are scheduled to re-price or mature during the next 12 months.
Our non-real estate loans primarily consist of commercial and industrial loans, which amounted to 13% of total loans, at June 30, 2023. This segment of the portfolio largely consists of loans to local businesses involved in industrial manufacturing and equipment, communications, and professional services. Approximately 37% of our commercial and industrial loans have adjustable rates and, of total commercial and industrial loans, approximately $8.8 million, or 50% are scheduled to re-price or mature during the next 12 months.
Credit Quality and Allowance for Loan Losses
At June 30 and March 31, 2023, non-performing assets (“NPAs”) totaled $2.2 million and $2.0 million, respectively, and the ratio of NPAs to total assets was 0.82% and 0.73%, respectively, at such dates. Non-performing loans (“NPLs”) totaled $1.9 million, or 1.42% of total loans, at June 30, 2023 and $1.7 million, or 1.27% of total loans, at March 31, 2023. At June 30, 2023 and March 31, 2023, greater than 94% of total NPLs were one- to four-family residential mortgage loans.
Net loan recoveries totaled $13,000 during the second quarter of 2023, compared to net recoveries of $54,000 for the first quarter of 2023. During the first quarter of 2023, the Company recovered $41,000 of principal from a previously charged-off residential mortgage loan.
At June 30 and March 31, 2023, the allowance for loan losses totaled $2.1 million, or 1.56% of total loans. The total provision for credit losses on loans and unfunded commitments was zero for the first six months of 2023.