Management segments the Banks' loan portfolio to a level that enables risk and performance monitoring according to similar risk characteristics. Loans are segmented based on the underlying collateral characteristics. Categories include commercial, financial, and agricultural, real estate, and installment loans. Real estate loans are further segmented into three categories: residential, commercial, and construction, while installment loans are classified as either consumer automobile loans or other installment loans.


	March 31, 2025
	Past Due
	30 To 89		Past Due 90
(In Thousands)	Days		Days Or More		Current		Total
Commercial, financial, and agricultural	$	972	$	174	$	214,268	$	215,414
Real estate mortgage:
Residential	10,037		3,820		818,662		832,519
Commercial	2,002		4,669		531,436		538,107
Construction	200		—		40,281		40,481
Consumer automobile loans	4,242		517		255,184		259,943
Other consumer installment loans	146		38		9,373		9,557
	$	17,599	$	9,218	$	1,869,204	1,896,021
Net deferred loan fees and discounts							1,355
Allowance for credit losses							(9,990)
Loans, net							$	1,887,386


	December 31, 2024
	Past Due
	30 To 89		Past Due 90
(In Thousands)	Days		Days Or More		Current		Total
Commercial, financial, and agricultural	$	1,742	$	64	$	210,313	$	212,119
Real estate mortgage:
Residential	13,222		2,622		814,563		830,407
Commercial	1,522		2,964		531,533		536,019
Construction	1,056		—		42,075		43,131
Consumer automobile loans	5,071		373		239,150		244,594
Other consumer installment loans	160		41		9,644		9,845
	$	22,773	$	6,064	$	1,847,278	1,876,115
Net deferred loan fees and discounts							963
Allowance for loan losses							(11,848)
Loans, net							$	1,865,230

The Allowance for Credit Losses ("ACL") related to loans consists of loans evaluated collectively and individually for expected credit losses. The ACL related to loans represents an estimate of expected credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. The ACL for off balance sheet credit exposure includes estimated losses on unfunded loan commitments, letters of credit and other off balance sheet credit exposures and is recorded in other liabilities. The total ACL is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.


	March 31, 2025						December 31, 2024

(In Thousands)	With a Related ACL		Without a Related ACL		Total		With a Related ACL		Without a Related ACL		Total
Commercial, financial, and agricultural	$	41	$	84	$	125	$	—	$	564	$	564
Real estate mortgage:
Residential	307		530		837		—		212		212
Commercial	2,336		2,576		4,912		2,036		1,576		3,612
Construction	—		—		—		—		—		—
Consumer automobile	—		8		8		—		—		—
Other consumer installment loans	—		—		—		—		—		—
	$	2,684	$	3,198	$	5,882	$	2,036	$	2,352	$	4,388

The ACL incorporates an estimate of lifetime expected credit losses and is recorded upon asset origination or acquisition. The starting point for the estimate of the ACL is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Management uses a ten point internal credit rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are evaluated for substandard classification. Loans in the doubtful category exhibit the same weaknesses found in the substandard loans; however, the weaknesses are more pronounced. Such loans are static and collection in full is improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Loans classified as loss are considered uncollectible and charge-off is imminent.

To help ensure that credit ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Banks have a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the pass category unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. An external semi-annual loan review of large commercial relationships is performed, as well as a sample of smaller transactions. The 2025 loan review will evaluate the Banks' outstanding commercial portfolio which can consist of outstanding loans, commercial real estate mortgages and outstanding commitments. Detailed reviews, including plans for resolution, are performed on loans classified as substandard, doubtful, or loss on a quarterly basis.


	March 31, 2025
(In Thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial, financial, and agricultural
Pass	$	5,273	$	28,000	$	22,243	$	40,836	$	28,339	$	52,482	$	33,485	$	141	$	210,799
Special Mention	—		—		—		90		336		1,773		1,753		—		3,952
Substandard or Lower	—		—		55		—		—		316		10		282		663


	$	5,273	$	28,000	$	22,298	$	40,926	$	28,675	$	54,571	$	35,248	$	423	$	215,414

Current period gross write offs	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	1

Real estate mortgage:
Residential
Pass	$	25,699	$	104,840	$	111,236	$	122,408	$	75,254	$	184,390	$	60,266	$	144,730	$	828,823
Special Mention	—		—		329		506		—		88		—		—		923
Substandard or Lower	—		—		—		307		264		2,060		92		50		2,773


	$	25,699	$	104,840	$	111,565	$	123,221	$	75,518	$	186,538	$	60,358	$	144,780	$	832,519

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	3

Commercial
Pass	$	10,120	$	39,196	$	65,976	$	99,543	$	115,731	$	180,809	$	13,005	$	829	$	525,209
Special Mention	—		—		173		146		2,307		887		—		—		3,513
Substandard or Lower	—		—		135		—		864		8,067		319		—		9,385


	$	10,120	$	39,196	$	66,284	$	99,689	$	118,902	$	189,763	$	13,324	$	829	$	538,107

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction
Pass	$	1,746	$	16,654	$	8,429	$	6,818	$	1,201	$	5,203	$	354	$	—	$	40,405
Special Mention	—		—		—		—		—		—		—		—		—
Substandard or Lower	—		—		—		—		—		76		—		—		76


	$	1,746	$	16,654	$	8,429	$	6,818	$	1,201	$	5,279	$	354	$	—	$	40,481

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer Automobile
Pass	$	32,949	$	81,345	$	79,853	$	47,261	$	9,847	$	8,688	$	—	$	—	$	259,943
Special Mention	—		—		—		—		—		—		—		—		—
Substandard or Lower	—		—		—		—		—		—		—		—		—


	$	32,949	$	81,345	$	79,853	$	47,261	$	9,847	$	8,688	$	—	$	—	$	259,943

Current period gross write offs	$	—	$	46	$	110	$	83	$	14	$	43	$	—	$	—	$	296

Installment loans to individuals
Pass	$	1,049	$	2,092	$	1,548	$	1,093	$	729	$	3,019	$	—	$	27	$	9,557
Special Mention	—		—		—		—		—		—		—		—		—
Substandard or Lower	—		—		—		—		—		—		—		—		—


	$	1,049	$	2,092	$	1,548	$	1,093	$	729	$	3,019	$	—	$	27	$	9,557

Current period gross write offs	$	16	$	23	$	16	$	11	$	10	$	21	$	—	$	—	$	97


	December 31, 2024
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial, financial, and agricultural
Pass	$	29,156	$	24,335	$	41,488	$	30,040	$	29,742	$	23,601	$	31,511	$	144	$	210,017
Special Mention	—		—		127		24		15		—		—		—		166
Substandard or Lower	—		—		—		—		—		690		476		770		1,936


	$	29,156	$	24,335	$	41,615	$	30,064	$	29,757	$	24,291	$	31,987	$	914	$	212,119

Current period gross write offs	$	—	$	40	$	71	$	—	$	—	$	65	$	—	$	—	$	176

Real estate mortgage:
Residential
Pass	$	107,763	$	114,177	$	125,199	$	78,214	$	44,408	$	147,432	$	61,341	$	148,538	$	827,072
Special Mention	—		334		516		—		—		90		—		—		940
Substandard or Lower	—		—		309		266		—		1,766		—		54		2,395


	$	107,763	$	114,511	$	126,024	$	78,480	$	44,408	$	149,288	$	61,341	$	148,592	$	830,407

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	13	$	27	$	—	$	40

Commercial
Pass	$	37,787	$	63,099	$	102,339	$	117,802	$	45,307	$	143,949	$	12,456	$	873	$	523,612
Special Mention	—		181		149		2,366		—		906		—		—		3,602
Substandard or Lower	—		—		—		872		—		7,933		—		—		8,805


	$	37,787	$	63,280	$	102,488	$	121,040	$	45,307	$	152,788	$	12,456	$	873	$	536,019

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	—	$	3

Construction
Pass	$	15,094	$	14,053	$	6,888	$	1,225	$	1,117	$	4,325	$	350	$	—	$	43,052
Special Mention	—		—		—		—		—		—		—		—		—
Substandard or Lower	—		—		—		—		—		79		—		—		79


	$	15,094	$	14,053	$	6,888	$	1,225	$	1,117	$	4,404	$	350	$	—	$	43,131

Current period gross write offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer Automobile
Pass	$	78,688	$	89,462	$	53,488	$	11,776	$	7,691	$	3,489	$	—	$	—	$	244,594
Special Mention	—		—		—		—		—		—		—		—		—
Substandard or Lower	—		—		—		—		—		—		—		—		—


	$	78,688	$	89,462	$	53,488	$	11,776	$	7,691	$	3,489	$	—	$	—	$	244,594

Current period gross write offs	$	115	$	525	$	246	$	97	$	61	$	37	$	—	$	—	$	1,081

Installment loans to individuals
Pass	$	2,837	$	1,739	$	1,245	$	800	$	386	$	2,808	$	—	$	30	$	9,845
Special Mention	—		—		—		—		—		—		—		—		—
Substandard or Lower	—		—		—		—		—		—		—		—		—


	$	2,837	$	1,739	$	1,245	$	800	$	386	$	2,808	$	—	$	30	$	9,845

Current period gross write offs	$	122	$	86	$	30	$	2	$	4	$	52	$	—	$	—	$	296

Maintaining an appropriate Allowance for Credit Losses ("ACL") is dependent on various factors, including the ability to identify potential problem loans in a timely manner. For commercial construction, residential construction, commercial and industrial, and commercial real estate, an internal credit rating process is used. Management believes that internal credit ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal credit rating categories is a significant component of the ACL methodology for these loans, which bases the probability of default on this migration. Assigning credit ratings involves judgment. The Company's loan review process provide a separate assessment of credit rating accuracy. Credit ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff or if specific loan review assessments identify a deterioration or an improvement in the loans.

Historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. A historical charge-off factor is calculated utilizing the charge-off and recovery data over the past ten years. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint.


	Three Months Ended March 31, 2025
	Commercial, Financial, and Agricultural		Real Estate Mortgages						Consumer automobile		Other consumer installment
(In Thousands)			Residential		Commercial		Construction						Totals
Beginning Balance	$	2,323	$	726	$	5,299	$	7	$	2,909	$	584	$	11,848
Charge-offs	(1)		(3)		—		—		(296)		(97)		(397)
Recoveries	378		1		—		—		22		953		1,354
Provision	(1,132)		333		(2,224)		4		1,055		(851)		(2,815)
Ending Balance	$	1,568	$	1,057	$	3,075	$	11	$	3,690	$	589	$	9,990


	Three Months Ended March 31, 2024
	Commercial, Financial, and Agricultural		Real Estate Mortgages						Consumer automobile		Other consumer installment
(In Thousands)			Residential		Commercial		Construction						Totals
Beginning Balance	$	3,379	$	1,200	$	3,352	$	145	$	2,668	$	702	$	11,446

Charge-offs	(90)		(4)		—		—		(336)		(95)		(525)
Recoveries	70		2		2		—		44		27		145
Provision	(308)		(479)		1,292		(136)		111		(4)		476
Ending Balance	$	3,051	$	719	$	4,646	$	9	$	2,487	$	630	$	11,542

The shift in allocation and the changes in the provision for credit losses are primarily due to changes in the credit metrics within the loan portfolio, a recovery on a commercial loan, and a decline in the historical loss rates over the look back period which reduced the probability of default and loss given default applied to the loan portfolio when determining the level of the allowance for credit losses. The fluctuation in provision for consumer automobile loans was driven by the level of net charge-

offs, an uncertain economic outlook, and portfolio growth. The provision for residential real estate increased due to the uncertain economic outlook. The level of provision for commercial, financial, and agricultural was primarily the result of net recoveries for the three month period which influenced the default assumptions in the model along with a decline in the historical loss rates over the look back period. The provision for commercial real estate decreased for the three month period due to strong credit metrics of the portfolio and a reduction in the loss probability based on the ten year look back period. The ACL for real estate construction remained stable as the portfolio balance decreased slightly.