Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands):



	June 30, 2025				December 31, 2024
Real Estate Loans:
Residential	$	332,631	18.6	%	$	330,856	19.3	%
Commercial		736,969	41.1			716,875	41.8
Agricultural		62,077	3.5			63,488	3.7
Construction		68,013	3.8			53,020	3.1
Commercial loans		229,182	12.8			211,991	12.4
Other agricultural loans		27,132	1.5			30,077	1.7
Consumer loans to individuals		335,040	18.7			307,775	18.0
Total loans		1,791,044	100.0	%		1,714,082	100.0	%
Deferred fees, net		(470)				(444)
Total loans receivable		1,790,574				1,713,638
Allowance for credit losses		(20,908)				(19,843)
Net loans receivable	$	1,769,666			$	1,693,795

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of June 30, 2025 and December 31, 2024, foreclosed real estate owned totaled $0 and $0, respectively. During the six months ended June 30, 2025, there were no additions to the foreclosed real estate category. As of June 30, 2025, the Company has initiated formal foreclosure proceedings on six properties classified as consumer residential mortgages with an aggregate carrying value of $273,000.

The following tables show the amount of loans in each category that were individually and collectively evaluated for credit loss:



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
June 30, 2025	(In thousands)
Individually evaluated	$	982	$	7,163	$	—	$	50	$	829	$	—	$	1,204	$	10,228
Collectively evaluated		331,649		729,806		62,077		67,963		228,353		27,132		333,836		1,780,816
Total Loans	$	332,631	$	736,969	$	62,077	$	68,013	$	229,182	$	27,132	$	335,040	$	1,791,044



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
	(In thousands)
December 31, 2024
Individually evaluated	$	940	$	7,197	$	—	$	—	$	854	$	—	$	1,031	$	10,022
Collectively evaluated		329,916		709,678		63,488		53,020		211,137		30,077		306,744		1,704,060
Total Loans	$	330,856	$	716,875	$	63,488	$	53,020	$	211,991	$	30,077	$	307,775	$	1,714,082

Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four 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 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 considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review, in conjunction with a third-party consultant, also annually reviews all criticized credits and relationships of $1,500,000 and over to re-affirm risk ratings.

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2025 and December 31, 2024 (in thousands):



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing			Non-accrual	Total Past Due and Non-Accrual		Total Loans
June 30, 2025
Real Estate loans
Residential	$	330,972	$	128	$	549	$	-	$	982	$	1,659	$	332,631
Commercial		729,599		1,319		341		-		5,710		7,370		736,969
Agricultural		62,029		-		48		-		-		48		62,077
Construction		67,963		-		-		-		50		50		68,013
Commercial loans		228,832		128		77		-		145		350		229,182
Other agricultural loans		27,132		-		-		-		-		-		27,132
Consumer loans		332,778		825		233		-		1,204		2,262		335,040
Total	$	1,779,305	$	2,400	$	1,248	$	-	$	8,091	$	11,739	$	1,791,044



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing			Non-accrual	Total Past Due and Non-Accrual			Total Loans
December 31, 2024
Real Estate loans
Residential	$	329,578	$	70	$	268	$	-	$	940	$	1,278	$	330,856
Commercial		709,821		1,182		129		-		5,743		7,054		716,875
Agricultural		63,488		-		-				-		-		63,488
Construction		53,009		11		-		-		-		11		53,020
Commercial loans		211,520		194		117		33		127		471		211,991
Other agricultural loans		30,028		49		-		-		-		49		30,077
Consumer loans		305,676		805		263		121		910		2,099		307,775
Total	$	1,703,120	$	2,311	$	777	$	154	$	7,720	$	10,962	$	1,714,082

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for credit losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance.

The following table presents the allowance for credit losses by the classes of the loan portfolio:


(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2024	$	1,146	$	11,406	$	48	$	884	$	1,732	$	162	$	4,465	$	19,843
Charge Offs		-		(49)		-		-		-		(48)		(783)		(880)
Recoveries		-		-		-		-		96		-		85		181
(Release of) Provision for credit losses		(135)		(318)		(9)		279		105		50		1,792		1,764
Ending balance, June 30, 2025	$	1,011	$	11,039	$	39	$	1,163	$	1,933	$	164	$	5,559	$	20,908
Ending balance individually evaluated	$	-	$	315	$	-	$	-	$	-	$	-	$	294	$	609
Ending balance collectively evaluated	$	1,011	$	10,724	$	39	$	1,163	$	1,933	$	164	$	5,265	$	20,299


(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2025	$	1,015	$	10,585	$	81	$	985	$	1,972	$	169	$	5,635	$	20,442
Charge Offs		-		-		-		-		-		(10)		(454)		(464)
Recoveries		-		-		-		-		42		-		47		89
(Release of) Provision for credit losses		(4)		454		(42)		178		(81)		5		331		841
Ending balance, June 30, 2025	$	1,011	$	11,039	$	39	$	1,163	$	1,933	$	164	$	5,559	$	20,908



(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2023	$	1,351	$	11,871	$	58	$	933	$	1,207	$	94	$	3,454	$	18,968
Charge Offs		-		-		-		-		(85)		-		(939)		(1,024)
Recoveries		42		104		-		-		-		-		44		190
(Release of) Provision for credit losses		(262)		(2,423)		(17)		(93)		913		36		1,518		(328)
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806
Ending balance individually evaluated ‎for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	164	$	164
Ending balance collectively evaluated ‎for impairment	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	3,913	$	17,642



(In thousands)	Residential Real Estate		Commercial Real Estate			Farmland		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, March 31, 2024	$	1,197	$	9,831	$	84	$	831	$	1,987	$	168	$	3,922	$	18,020
Charge Offs		-		-		-		-		(30)		-		(500)		(530)
Recoveries		-		2		-		-		-		-		17		19
(Release of) Provision for credit losses		(66)		(281)		(43)		9		78		(38)		638		297
Ending balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806

During the six months ended June 30, 2025, the Company recorded a provision for credit losses related to loans totaling $1,764,000. Factors impacting the provision include changes in the cumulative loss rates applied to the respective loan pools due to loss activity being added or subtracted with the passage of time, and variances in Qualitative Factors and Economic Factors.

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience. The Company chose to apply qualitative factors based on “quantitative metrics” which link the quantifiable metrics to historical changes in the qualitative factor categories. The Company also chose to apply economic projections to the model. A select group of economic indicators was utilized which was then correlated to the historical loss experience of the Company and its peers. Based on the correlation results, the economic adjustments are then weighted for relevancy and applied to the individual loan pools.

The following table presents the carrying value of loans on nonaccrual status and loans past due over 90 days still accruing interest (in thousands):


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
June 30, 2025
Real Estate loans
Residential	$	982	$	-	$	982	$	-	$	982
Commercial		5,689		21		5,710		-		5,710
Agricultural		-		-		-		-		-
Construction		50		-		50		-		50
Commercial loans		145		-		145		-		145
Other agricultural loans		-		-		-		-		-
Consumer loans		288		916		1,204		-		1,204
Total	$	7,154	$	937	$	8,091	$	-	$	8,091


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
December 31, 2024
Real Estate loans
Residential	$	936	$	4	$	940	$	-	$	940
Commercial		5,739		4		5,743		-		5,743
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		127		-		127		33		160
Other agricultural loans		-		-		-		-		-
Consumer loans		570		340		910		121		1,031
Total	$	7,372	$	348	$	7,720	$	154	$	7,874

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogenous pools by internal risk rating systems (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
June 30, 2025		2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	60,518	$	101,229	$	71,736	$	118,247	$	93,843	$	257,872	$	19,688	$	-	$	723,133
Special Mention		-		4		-		255		-		1,901		-		-		2,160
Substandard		-		135		-		-		2,470		8,671		400		-		11,676
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	60,518	$	101,368	$	71,736	$	118,502	$	96,313	$	268,444	$	20,088	$	-	$	736,969

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	49	$	-	$	-	$	49

Real Estate - Agriculture
Risk Rating
Pass	$	1,817	$	6,081	$	3,741	$	11,712	$	3,843	$	33,955	$	324	$	-	$	61,473
Special Mention		-		-		-		-		-		429		150		-		579
Substandard		-		-		-		-		-		-		25		-		25
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,817	$	6,081	$	3,741	$	11,712	$	3,843	$	34,384	$	499	$	-	$	62,077

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	40,841	$	46,075	$	28,062	$	27,408	$	14,956	$	22,119	$	46,451	$	-	$	225,912
Special Mention		-		-		-		23		-		95		14		-		132
Substandard		-		-		265		392		648		858		975		-		3,138
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	40,841	$	46,075	$	28,327	$	27,823	$	15,604	$	23,072	$	47,440	$	-	$	229,182

Commercial loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other agricultural loans
Risk Rating
Pass	$	1,321	$	3,477	$	1,522	$	2,914	$	2,086	$	5,567	$	8,663	$	-	$	25,550
Special Mention		-		-		-		-		-		107		-		-		107
Substandard		-		-		-		-		-		-		1,475		-		1,475
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,321	$	3,477	$	1,522	$	2,914	$	2,086	$	5,674	$	10,138	$	-	$	27,132

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	48	$	-

Total
Risk Rating
Pass	$	104,497	$	156,862	$	105,061	$	160,281	$	114,728	$	319,513	$	75,126	$	-	$	1,036,068
Special Mention		-		4		-		278		-		2,532		164		-		2,978
Substandard		-		135		265		392		3,118		9,529		2,875		-		16,314
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	104,497	$	157,001	$	105,326	$	160,951	$	117,846	$	331,574	$	78,165	$	-	$	1,055,360

‎


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	102,773	$	74,242	$	121,881	$	104,720	$	60,941	$	217,435	$	20,829	$	-	$	702,821
Special Mention		5		-		262		-		-		2,148		-		-		2,415
Substandard		135		-		-		2,461		1,405		7,238		400		-		11,639
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	102,913	$	74,242	$	122,143	$	107,181	$	62,346	$	226,821	$	21,229	$	-	$	716,875

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Real Estate - Agriculture
Risk Rating
Pass	$	6,257	$	3,756	$	12,036	$	3,960	$	7,148	$	29,038	$	336	$	-	$	62,531
Special Mention		-		-		-		-		-		773		150		-		923
Substandard		-		-		-		-		-		-		34		-		34
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	6,257	$	3,756	$	12,036	$	3,960	$	7,148	$	29,811	$	520	$	-	$	63,488

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	57,939	$	34,088	$	29,465	$	19,163	$	10,233	$	15,042	$	42,906	$	-	$	208,836
Special Mention		-		-		25		-		-		106		14		-		145
Substandard		-		277		429		711		-		743		850		-		3,010
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	57,939	$	34,365	$	29,919	$	19,874	$	10,233	$	15,891	$	43,770	$	-	$	211,991

Commercial loans
Current period gross charge-offs	$	-	$	11	$	-	$	-	$	8	$	51	$	30	$	-	$	100

Other agricultural loans
Risk Rating
Pass	$	4,358	$	1,836	$	3,721	$	2,379	$	2,134	$	4,353	$	9,697	$	-	$	28,478
Special Mention		-		-		-		-		-		127		-		-		127
Substandard		-		-		-		-		-		-		1,472		-		1,472
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	4,358	$	1,836	$	3,721	$	2,379	$	2,134	$	4,480	$	11,169	$	-	$	30,077

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	171,327	$	113,922	$	167,103	$	130,222	$	80,456	$	265,868	$	73,768	$	-	$	1,002,666
Special Mention		5		-		287		-		-		3,154		164		-		3,610
Substandard		135		277		429		3,172		1,405		7,981		2,756		-		16,155
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	171,467	$	114,199	$	167,819	$	133,394	$	81,861	$	277,003	$	76,688	$	-	$	1,022,431

The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due over 90 days and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed monthly. The following table presents the carrying value of residential and consumer loans based on payment activity (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
June 30, 2025		2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	9,024	$	29,670	$	40,390	$	56,912	$	50,204	$	114,600	$	30,849	$	-	$	331,649
Nonperforming		-		-		125		218		174		428		37		-		982
Total	$	9,024	$	29,670	$	40,515	$	57,130	$	50,378	$	115,028	$	30,886	$	-	$	332,631

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Payment Performance
Performing	$	6,971	$	35,973	$	13,639	$	8,679	$	342	$	118	$	2,241	$	-	$	67,963
Nonperforming		-		-		-		50		-		-		-		-		50
Total	$	6,971	$	35,973	$	13,639	$	8,729	$	342	$	118	$	2,241	$	-	$	68,013

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	74,280	$	111,882	$	77,601	$	42,260	$	12,300	$	14,736	$	777	$	-	$	333,836
Nonperforming		73		209		351		369		109		93		-		-		1,204
Total	$	74,353	$	112,091	$	77,952	$	42,629	$	12,409	$	14,829	$	777	$	-	$	335,040

Consumer loans to individuals
Current period gross charge-offs	$	3	$	191	$	229	$	209	$	59	$	92	$	-	$	-	$	783

Total
Payment Performance
Performing	$	90,275	$	177,525	$	131,630	$	107,851	$	62,846	$	129,454	$	33,867	$	-	$	733,448
Nonperforming		73		209		476		637		283		521		37		-		2,236
Total	$	90,348	$	177,734	$	132,106	$	108,488	$	63,129	$	129,975	$	33,904	$	-	$	735,684


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	22,842	$	41,384	$	60,194	$	52,712	$	32,161	$	89,965	$	30,658	$	-	$	329,916
Nonperforming		-		125		52		184		-		560		19		-		940
Total	$	22,842	$	41,509	$	60,246	$	52,896	$	32,161	$	90,525	$	30,677	$	-	$	330,856

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Payment Performance
Performing	$	28,817	$	12,986	$	9,024	$	431	$	-	$	144	$	1,618	$	-	$	53,020
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	28,817	$	12,986	$	9,024	$	431	$	-	$	144	$	1,618	$	-	$	53,020

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	125,254	$	93,392	$	52,009	$	15,679	$	8,316	$	11,207	$	887	$	-	$	306,744
Nonperforming		97		401		377		114		26		16		-		-		1,031
Total	$	125,351	$	93,793	$	52,386	$	15,793	$	8,342	$	11,223	$	887	$	-	$	307,775

Consumer loans to individuals
Current period gross charge-offs	$	123	$	511	$	850	$	203	$	87	$	75	$	-	$	-	$	1,849

Total
Payment Performance
Performing	$	176,913	$	147,762	$	121,227	$	68,822	$	40,477	$	101,316	$	33,163	$	-	$	689,680
Nonperforming		97		526		429		298		26		576		19		-		1,971
Total	$	177,010	$	148,288	$	121,656	$	69,120	$	40,503	$	101,892	$	33,182	$	-	$	691,651

Occasionally, the Bank modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Bank provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. During the six months ended June 30, 2025, there were modifications made to borrowers experiencing financial difficulty consisting of six loan relationships. The following table presents modifications made to borrowers experiencing financial difficulty:


Significant Payment Delay

		Amortized Cost Basis at June 30, 2025	% of Total Class of Financing Receivable		Financial Effect
		(in thousands)
Commercial real estate loans	$	295	0.04	%	Deferred principal for 6 months
Commercial loans		481	0.21		Deferred principal for 4-6 months
Consumer loans to individuals		6	0.00		Deferred principal for 4 months

Total	$	782

Term Extension

		Amortized Cost Basis at June 30, 2025	% of Total Class of Financing Receivable		Financial Effect
		(in thousands)
Commercial real estate loans	$	1,423	0.19	%	Added a weighted-average 6.0 months to the life of loans
Commercial loans		286	0.12		Added a weighted-average 5.0 years to the life of loans

Total	$	1,709


Combination -Significant Payment Delay and Term Extension

		Amortized Cost Basis at June 30, 2025	% of Total Class of Financing Receivable		Financial Effect

Commercial real estate loans	$	3,749	0.51	%	Deferred principal for 9 months and extended term by 9 months

Total	$	3,749

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified (in thousands):


Amortized Cost Basis of Modified Loans That Subsequently Defaulted

		Term Extension

Commercial real estate loans	$	1,423

	$	1,423

The following table depicts the performance of loans that have been modified during the period for which a payment default has occurred (in thousands):

The Company’s primary business activity as of June 30, 2025 was with customers located in northeastern Pennsylvania and the New York counties of Delaware, Sullivan, Ontario, Otsego and Yates. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to repay their loans is influenced by the region’s economy.

As of June 30, 2025, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $162.7 million of loans outstanding, or 9.1% of total loans outstanding, and residential rentals with loans outstanding of $117.2 million, or 6.6% of loans outstanding. For the six months ended June 30, 2025, the Company recognized charge offs of $0 on commercial rentals and $0 on residential rentals. The following table presents additional details regarding the company’s largest loan concentrations by industry as of June 30, 2025 (in thousands):