Note 3 - Loans Receivable

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 3. LOANS RECEIVABLE

Loans receivable consisted of the following:

		June 30,				December 31,
		2025				2024
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	194,289			$	199,422
Commercial real estate			938,451				916,783

Other loans:
Home equity			102,778				97,543
Consumer			26,658				28,513
Commercial			307,486				278,385

Total			1,569,662				1,520,646

Allowance for credit losses			(17,730	)			(16,850	)
Total loans, net		$	1,551,932			$	1,503,796

Included in the above are loans guaranteed by U.S. government agencies totaling $14,268,000 and $16,309,000 at June 30, 2025 and December 31, 2024, respectively.

The following table provides allowance for credit losses activity for the three months ended June 30, 2025.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, April 1, 2025		$	1,904			$	10,830			$	551			$	239			$	3,196			$	16,720
Charge-offs			-				-				(27	)			(24	)			-				(51	)
Recoveries			-				3				-				-				-				3
Provision			101				589				15				7				346				1,058
Total ending allowance balance, June 30, 2025		$	2,005			$	11,422			$	539			$	222			$	3,542			$	17,730

The following table provides allowance for credit losses activity for the six months ended June 30, 2025.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, January 1, 2025		$	1,911			$	10,907			$	553			$	245			$	3,234			$	16,850
Charge-offs			-				-				(27	)			(30	)			-				(57	)
Recoveries			-				5				-				1				1				7
Provision			94				510				13				6				307				930
Total ending allowance balance, June 30, 2025		$	2,005			$	11,422			$	539			$	222			$	3,542			$	17,730

The following table provides allowance for credit losses activity for the three months ended June 30, 2024.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, April 1, 2024		$	1,858			$	10,633			$	538			$	304			$	3,077			$	16,410
Charge-offs			-				-				-				(12	)			-				(12	)
Recoveries			-				7				-				1				2				10
Provision			40				292				16				2				72				422
Total ending allowance balance, June 30, 2024		$	1,898			$	10,932			$	554			$	295			$	3,151			$	16,830

The following table provides allowance for credit losses activity for the six months ended June 30, 2024.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, January 1, 2024		$	1,866			$	10,691			$	540			$	304			$	3,039			$	16,440
Charge-offs			-				-				-				(13	)			-				(13	)
Recoveries			-				10				-				2				64				76
Provision			32				231				14				2				48				327
Total ending allowance balance, June 30, 2024		$	1,898			$	10,932			$	554			$	295			$	3,151			$	16,830

Internal classification of the loan portfolio by amortized cost and based on year originated was as follows:

		June 30, 2025
		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total Loans
		(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass		$	5,533			$	19,078			$	23,871			$	30,650			$	19,450			$	45,135			$	1,949			$	145,666
Special Mention			-				-				-				625				-				-				-				625
Substandard			-				-				-				98				-				754				-				852
Total Residential 1-4 family			5,533				19,078				23,871				31,373				19,450				45,889				1,949				147,143
Current-period gross charge-offs			-				-				-				-				-				-				-				-
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass			14,272				15,114				2,357				12,239				-				-				1,836				45,818
Substandard			-				-				1,328				-				-				-								1,328
Total Residential 1-4 family construction			14,272				15,114				3,685				12,239				-				-				1,836				47,146
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL REAL ESTATE
Pass			20,023				57,674				67,294				188,080				123,911				164,408				39,941				661,331
Special Mention			-				-				259				435				-				-				2,921				3,615
Substandard			-				6,304				548				-				457				3,030				-				10,339
Total Commercial real estate			20,023				63,978				68,101				188,515				124,368				167,438				42,862				675,285
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass			14,242				27,729				9,123				20,844				8,539				12,666				6,884				100,027
Substandard			-				-				-				-				-				957				-				957
Total Commercial construction and development			14,242				27,729				9,123				20,844				8,539				13,623				6,884				100,984
Current-period gross charge-offs			-				-				-				-				-				-				-				-
FARMLAND
Pass			22,616				20,273				17,410				29,976				18,268				48,801				2,889				160,233
Special Mention			-				-				387				250				-				730				-				1,367
Substandard			-				188				-				-				-				348				46				582
Total Farmland			22,616				20,461				17,797				30,226				18,268				49,879				2,935				162,182
Current-period gross charge-offs			-				-				-				-				-				-				-				-
HOME EQUITY
Pass			1,244				1,241				1,099				2,983				333				2,418				93,026				102,344
Special Mention			-				-				-				-				-				22				129				151
Substandard			-				-				-				-				42				82				159				283
Total Home Equity			1,244				1,241				1,099				2,983				375				2,522				93,314				102,778
Current-period gross charge-offs			-				-				-				-				-				27				-				27
CONSUMER
Pass			5,680				7,496				5,436				3,335				1,132				1,062				2,298				26,439
Special Mention			-				1				24				-				-				-				19				44
Substandard			-				-				122				22				-				31				-				175
Total Consumer			5,680				7,497				5,582				3,357				1,132				1,093				2,317				26,658
Current-period gross charge-offs			-				10				-				7				-				-				13				30
COMMERCIAL
Pass			11,707				30,211				22,391				16,227				13,327				21,044				35,291				150,198
Special Mention			-				-				339				184				-				-				200				723
Substandard			-				1,152				41				5				15				197				4				1,414
Total Commercial			11,707				31,363				22,771				16,416				13,342				21,241				35,495				152,335
Current-period gross charge-offs			-				-				-				-				-				-				-				-
AGRICULTURAL
Pass			30,881				27,442				10,263				6,420				3,268				2,992				66,164				147,430
Special Mention			181				3,493				2,977				-				-				661				-				7,312
Substandard			-				-				-				-				-				409				-				409
Total Agricultural			31,062				30,935				13,240				6,420				3,268				4,062				66,164				155,151
Current-period gross charge-offs			-				-				-				-				-				-				-				-
TOTAL LOANS
Pass			126,198				206,258				159,244				310,754				188,228				298,526				250,278				1,539,486
Special Mention			181				3,494				3,986				1,494				-				1,413				3,269				13,837
Substandard			-				7,644				2,039				125				514				5,808				209				16,339
Total		$	126,379			$	217,396			$	165,269			$	312,373			$	188,742			$	305,747			$	253,756			$	1,569,662

		December 31, 2024
		2024				2023				2022				2021				2020				Prior				Revolving Loans				Total Loans
		(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass		$	19,197			$	26,976			$	31,265			$	20,658			$	13,509			$	34,913			$	6,004			$	152,522
Special Mention			-				-				623				-				-				-				-				623
Substandard			-				-				-				-				-				576				-				576
Total Residential 1-4 family			19,197				26,976				31,888				20,658				13,509				35,489				6,004				153,721
Current-period gross charge-offs			-				-				-				-				-				11				-				11
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass			20,593				5,526				18,621				-				-				-				-				44,740
Substandard			-				204				-				757				-				-				-				961
Total Residential 1-4 family construction			20,593				5,730				18,621				757				-				-				-				45,701
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL REAL ESTATE
Pass			49,084				59,172				184,072				130,274				47,481				132,838				38,937				641,858
Special Mention			-				260				-				-				-				-				-				260
Substandard			-				490				-				463				-				2,891				-				3,844
Total Commercial real estate			49,084				59,922				184,072				130,737				47,481				135,729				38,937				645,962
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass			37,265				21,430				35,323				9,628				5,033				8,676				5,451				122,806
Substandard			-				-				438				-				2				965				-				1,405
Total Commercial construction and development			37,265				21,430				35,761				9,628				5,035				9,641				5,451				124,211
Current-period gross charge-offs			-				-				-				-				-				-				-				-
FARMLAND
Pass			21,543				18,083				29,983				18,991				20,076				33,721				2,323				144,720
Special Mention			-				342				813				205				-				220				-				1,580
Substandard			188				-				-				-				65				57				-				310
Total Farmland			21,731				18,425				30,796				19,196				20,141				33,998				2,323				146,610
Current-period gross charge-offs			-				-				-				-				-				-				-				-
HOME EQUITY
Pass			1,031				1,438				3,248				362				483				2,234				88,230				97,026
Special Mention			-				-				-				-				-				22				93				115
Substandard			-				-				-				43				-				89				270				402
Total Home Equity			1,031				1,438				3,248				405				483				2,345				88,593				97,543
Current-period gross charge-offs			-				-				-				-				-				-				-				-
CONSUMER
Pass			10,828				7,580				4,547				1,666				961				798				2,001				28,381
Special Mention			-				8				-				-				-				-				-				8
Substandard			-				66				19				-				24				14				1				124
Total Consumer			10,828				7,654				4,566				1,666				985				812				2,002				28,513
Current-period gross charge-offs			-				23				15				5				1				15				6				65
COMMERCIAL
Pass			29,540				25,748				19,189				15,851				17,617				6,208				27,839				141,992
Special Mention			-				127				95				-				-				-				370				592
Substandard			1,192				41				6				22				-				190				4				1,455
Total Commercial			30,732				25,916				19,290				15,873				17,617				6,398				28,213				144,039
Current-period gross charge-offs			-				-				-				-				-				10				-				10
AGRICULTURAL
Pass			39,001				21,690				9,014				4,215				3,143				1,608				52,494				131,165
Special Mention			1,811				159				15				-				-				37				596				2,618
Substandard			-				-				-				-				1				515				47				563
Total Agricultural			40,812				21,849				9,029				4,215				3,144				2,160				53,137				134,346
Current-period gross charge-offs			-				-				-				-				-				-				-				-
TOTAL LOANS
Pass			228,082				187,643				335,262				201,645				108,303				220,996				223,279				1,505,210
Special Mention			1,811				896				1,546				205				-				279				1,059				5,796
Substandard			1,380				801				463				1,285				92				5,297				322				9,640
Total		$	231,273			$	189,340			$	337,271			$	203,135			$	108,395			$	226,572			$	224,660			$	1,520,646

The following tables include information regarding delinquencies within the loan portfolio.

		June 30, 2025
		Loans Past Due and Still Accruing

						90 Days								Nonaccrual				Nonaccrual
		30-89 Days				and								Loans with				Loans with				Current				Total
		Past Due				Greater				Total				no ACL				ACL				Loans				Loans
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	969			$	-			$	969			$	559			$	-			$	145,615			$	147,143
Residential 1-4 family construction			-				1,328				1,328				-				-				45,818				47,146
Commercial real estate			6,937				475				7,412				453				-				667,420				675,285
Commercial construction and development			439				762				1,201				1				-				99,782				100,984
Farmland			12				-				12				425				-				161,745				162,182
Other loans:
Home equity			509				-				509				222				-				102,047				102,778
Consumer			182				-				182				96				61				26,319				26,658
Commercial			421				61				482				193				4				151,656				152,335
Agricultural			13				34				47				409				-				154,695				155,151
Total		$	9,482			$	2,660			$	12,142			$	2,358			$	65			$	1,555,097			$	1,569,662

		December 31, 2024
		Loans Past Due and Still Accruing

						90 Days								Nonaccrual				Nonaccrual
		30-89 Days				and								Loans with				Loans with				Current				Total
		Past Due				Greater				Total				no ACL				ACL				Loans				Loans
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	1,326			$	623			$	1,949			$	469			$	-			$	151,303			$	153,721
Residential 1-4 family construction			-				-				-				961				-				44,740				45,701
Commercial real estate			5,739				-				5,739				268				-				639,955				645,962
Commercial construction and development			951				-				951				2				-				123,258				124,211
Farmland			54				-				54				190				-				146,366				146,610
Other loans:
Home equity			382				-				382				335				-				96,826				97,543
Consumer			195				-				195				98				23				28,197				28,513
Commercial			1,064				-				1,064				200				4				142,771				144,039
Agricultural			566				-				566				677				-				133,103				134,346
Total		$	10,277			$	623			$	10,900			$	3,200			$	27			$	1,506,519			$	1,520,646

Interest income recognized on nonaccrual loans for the three and six months ended June 30, 2025 and 2024 is considered insignificant. Interest payments received on a cash basis related to nonaccrual loans were $340,000 at June 30, 2025 and $522,000 at December 31, 2024.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans.

		June 30, 2025
		Real Estate				Business Assets				Other
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	658			$	-			$	-
Residential 1-4 family construction			1,328				-				-
Commercial real estate			1,046				6,606				-
Commercial construction and development			957				-				-
Farmland			368				-				-
Other loans:
Home equity			198				-				-
Consumer			-				-				137
Commercial			-				276				4
Agricultural			34				157				-
Total		$	4,589			$	7,039			$	141

		December 31, 2024
		Real Estate				Business Assets				Other
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	967			$	-			$	-
Residential 1-4 family construction			961				-				-
Commercial real estate			1,395				228				-
Farmland			108				-				-
Other loans:
Home equity			216				-				-
Consumer			-				-				104
Commercial			-				220				4
Agricultural			37				244				-
Total		$	3,684			$	692			$	108

The Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, term extensions, other than insignificant payment delays, or any combination of these.

The following tables include the amortized cost basis at the end of the period of the loans modified to borrowers experiencing financial difficulty.

		As of or For the
		Three Months Ended
		June 30, 2025
		Term Extension and Payment Deferral								Term Extension and Interest Rate Reduction
		Amortized Cost Basis				Percent of Loan Category				Amortized Cost Basis				Percent of Loan Category				Total
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	625				0.4	%		$	-				0.0	%		$	625
Farmland			108				0.1	%			-				0.0	%			108
Other loans:
Home equity			70				0.1	%			-				0.0	%			70
Agricultural			150				0.1	%			6				0.0	%			156
Total		$	953							$	6							$	959

		As of or For the
		Six Months Ended
		June 30, 2025
		Term Extension and Payment Deferral								Term Extension and Interest Rate Reduction
		Amortized Cost Basis				Percent of Loan Category				Amortized Cost Basis				Percent of Loan Category				Total
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	625				0.4	%		$	-				0.0	%		$	625
Commercial real estate			-				0.0	%			209				0.0	%			209
Farmland			108				0.1	%			-				0.0	%			108
Other loans:
Home equity			114				0.1	%			-				0.0	%			114
Agricultural			403				0.3	%			6				0.0	%			409
Total		$	1,250							$	215							$	1,465

During the three and six months ended June 30, 2024, the Company modified one loan.

As of June 30, 2024, the Company modified one farmland loan by extending the payment for seven months. The loan had amortized cost of $155,000 or 0.1% of farmland loans at June 30, 2024. The loan paid off during the fourth quarter of 2024.