| LOANS AND ALLOWANCE FOR CREDIT LOSSES |
NOTE 3 — LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table presents outstanding balances by loan class prior to allocation of net deferred fees and costs, as well as the balance of total loans held for investment after allocation of net deferred fees and costs and net loans after allocation of the allowance for credit losses as of December 31, 2025 and 2024. | | | | | | | (Dollars in thousands) | | December 31, | | December 31, | | | 2025 | | 2024 | Real Estate | | $ | 853,668 | | $ | 850,656 | Agricultural | | | 984 | | | 936 | Commercial and Industrial | | | 66,924 | | | 66,706 | Consumer | | | 4,953 | | | 6,390 | State and Political Subdivisions | | | 20,132 | | | 22,138 | Subtotal: Total Loans | | | 946,661 | | | 946,826 | Net Deferred Fees and Costs | | | 624 | | | 888 | Subtotal: Total Loans Held for Investment | | | 947,285 | | | 947,714 | Loans Held for Sale | | | 1,140 | | | 737 | Allowance for Credit Losses | | | (9,412) | | | (7,672) | Net Loans | | $ | 939,013 | | $ | 940,779 |
The following table presents the classes of the loan portfolio summarized by risk rating and year of origination and year-to-date gross charge offs by loan portfolio summarized by year of origination as of December 31, 2025 and 2024. | | | | | | | | | | | | | | | December 31, 2025: | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate: | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | 1-6 Pass | $ | 105,385 | | 98,017 | | 100,585 | | 143,520 | | 105,700 | | 272,003 | $ | 825,210 | 7 Special Mention | | 863 | | 93 | | 1,995 | | 282 | | 804 | | — | | 4,037 | 8 Substandard | | 80 | | — | | — | | 3,389 | | 1,260 | | 19,692 | | 24,421 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Real Estate Loans | $ | 106,328 | $ | 98,110 | $ | 102,580 | $ | 147,191 | $ | 107,764 | $ | 291,695 | $ | 853,668 | | | | | | | | | | | | | | | | Agricultural: | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | 1-6 Pass | $ | 24 | | 168 | | 151 | | 24 | | — | | 617 | $ | 984 | 7 Special Mention | | — | | — | | — | | — | | — | | — | | — | 8 Substandard | | — | | — | | — | | — | | — | | — | | — | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Agricultural Loans | $ | 24 | $ | 168 | $ | 151 | $ | 24 | $ | — | $ | 617 | $ | 984 | | | | | | | | | | | | | | | | Commercial and Industrial: | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | 1-6 Pass | $ | 14,374 | | 6,297 | | 15,040 | | 4,414 | | 3,303 | | 23,186 | $ | 66,614 | 7 Special Mention | | — | | 300 | | — | | — | | — | | — | | 300 | 8 Substandard | | — | | — | | 10 | | — | | — | | — | | 10 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Commercial and
Industrial Loans | $ | 14,374 | $ | 6,597 | $ | 15,050 | $ | 4,414 | $ | 3,303 | $ | 23,186 | $ | 66,924 | | | | | | | | | | | | | | | | Consumer: | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | 1-6 Pass | $ | 1,593 | | 1,310 | | 657 | | 337 | | 340 | | 693 | $ | 4,930 | 7 Special Mention | | — | | — | | — | | — | | — | | 13 | | 13 | 8 Substandard | | — | | — | | — | | — | | — | | 10 | | 10 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Consumer Loans | $ | 1,593 | $ | 1,310 | $ | 657 | $ | 337 | $ | 340 | $ | 716 | $ | 4,953 | | | | | | | | | | | | | | | | State and Political Subdivisions: | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | 1-6 Pass | $ | 861 | | — | | 1,139 | | 1,374 | | 12,528 | | 4,230 | $ | 20,132 | 7 Special Mention | | — | | — | | — | | — | | — | | — | | — | 8 Substandard | | — | | — | | — | | — | | — | | — | | — | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total State and Political Subdivision Loans | $ | 861 | $ | — | $ | 1,139 | $ | 1,374 | $ | 12,528 | $ | 4,230 | $ | 20,132 | | | | | | | | | | | | | | | | Total Loans: | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | 1-6 Pass | $ | 122,237 | | 105,792 | | 117,572 | | 149,669 | | 121,871 | | 300,729 | $ | 917,870 | 7 Special Mention | | 863 | | 393 | | 1,995 | | 282 | | 804 | | 13 | | 4,350 | 8 Substandard | | 80 | | — | | 10 | | 3,389 | | 1,260 | | 19,702 | | 24,441 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Loans | $ | 123,180 | $ | 106,185 | $ | 119,577 | $ | 153,340 | $ | 123,935 | $ | 320,444 | $ | 946,661 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | Gross Charge Offs: | | | | | | | | | | | | | | | Real Estate | $ | — | | — | | 10 | | 2,000 | | — | | 7 | $ | 2,017 | Agricultural | | — | | — | | — | | — | | — | | — | | — | Commercial and Industrial | | — | | — | | 442 | | 500 | | — | | — | | 942 | Consumer | | 1 | | 8 | | 7 | | 3 | | 2 | | 14 | | 35 | State and Political Subdivisions | | — | | — | | — | | — | | — | | — | | — | Total Gross Charge Offs | $ | 1 | $ | 8 | $ | 459 | $ | 2,503 | $ | 2 | $ | 21 | $ | 2,994 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | As of December 31, 2024: | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate: | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | 1-6 Pass | $ | 103,734 | | 114,225 | | 167,282 | | 119,406 | | 101,748 | | 216,890 | $ | 823,285 | 7 Special Mention | | — | | — | | 76 | | 225 | | — | | 1,239 | | 1,540 | 8 Substandard | | — | | — | | 4,529 | | 568 | | 4,093 | | 16,641 | | 25,831 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Real Estate Loans | $ | 103,734 | $ | 114,225 | $ | 171,887 | $ | 120,199 | $ | 105,841 | $ | 234,770 | $ | 850,656 | | | | | | | | | | | | | | | | Agricultural: | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | 1-6 Pass | $ | 59 | | 223 | | 43 | | — | | — | | 611 | $ | 936 | 7 Special Mention | | — | | — | | — | | — | | — | | — | | — | 8 Substandard | | — | | — | | — | | — | | — | | — | | — | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Agricultural Loans | $ | 59 | $ | 223 | $ | 43 | $ | — | $ | — | $ | 611 | $ | 936 | | | | | | | | | | | | | | | | Commercial and Industrial: | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | 1-6 Pass | $ | 8,481 | | 16,252 | | 8,888 | | 4,544 | | 3,086 | | 24,998 | $ | 66,249 | 7 Special Mention | | — | | — | | — | | — | | — | | — | | — | 8 Substandard | | — | | 420 | | — | | — | | 12 | | 25 | | 457 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Commercial and
Industrial Loans | $ | 8,481 | $ | 16,672 | $ | 8,888 | $ | 4,544 | $ | 3,098 | $ | 25,023 | $ | 66,706 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer: | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | 1-6 Pass | $ | 2,962 | | 1,292 | | 718 | | 577 | | 71 | | 764 | $ | 6,384 | 7 Special Mention | | — | | — | | — | | — | | — | | — | | — | 8 Substandard | | — | | — | | — | | — | | — | | 6 | | 6 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Consumer Loans | $ | 2,962 | $ | 1,292 | $ | 718 | $ | 577 | $ | 71 | $ | 770 | $ | 6,390 | | | | | | | | | | | | | | | | State and Political Subdivisions: | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | 1-6 Pass | $ | — | | 1,232 | | 2,739 | | 13,338 | | — | | 4,829 | $ | 22,138 | 7 Special Mention | | — | | — | | — | | — | | — | | — | | — | 8 Substandard | | — | | — | | — | | — | | — | | — | | — | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total State and Political Subdivision Loans | $ | — | $ | 1,232 | $ | 2,739 | $ | 13,338 | $ | — | $ | 4,829 | $ | 22,138 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans: | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | 1-6 Pass | $ | 115,236 | $ | 133,224 | $ | 179,670 | $ | 137,865 | $ | 104,905 | $ | 248,092 | $ | 918,992 | 7 Special Mention | | — | | — | | 76 | | 225 | | — | | 1,239 | | 1,540 | 8 Substandard | | — | | 420 | | 4,529 | | 568 | | 4,105 | | 16,672 | | 26,294 | 9 Doubtful | | — | | — | | — | | — | | — | | — | | — | Total Loans | $ | 115,236 | $ | 133,644 | $ | 184,275 | $ | 138,658 | $ | 109,010 | $ | 266,003 | $ | 946,826 | | | | | | | | | | | | | | | | | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | Gross Charge Offs: | | | | | | | | | | | | | | | Real Estate | $ | — | | — | | — | | — | | — | | 345 | $ | 345 | Agricultural | | — | | — | | — | | — | | — | | — | | — | Commercial and Industrial | | — | | — | | — | | 20 | | — | | 504 | | 524 | Consumer | | — | | 15 | | 29 | | 11 | | 8 | | 6 | | 69 | State and Political Subdivisions | | — | | — | | — | | — | | — | | — | | — | Total Gross Charge Offs | $ | — | $ | 15 | $ | 29 | $ | 31 | $ | 8 | $ | 855 | $ | 938 | | | | | | | | | | | | | | | |
State and Political Subdivision loans include loans categorized as tax-free in the amount of $20,132,000 as of December 31, 2025 and $22,138,000 as of December 31, 2024. Commercial and Industrial loans include $3,902,000 of Government Guaranteed Loans (“GGLs”) as of December 31, 2025 and $4,306,000 of GGLs as of December 31, 2024. Loans to related parties are included in the figures above and are summarized in Note 13 – Related Party Transactions. The activity in the allowance for credit losses by loan class is summarized below for the years ended December 31, 2025 and 2024. | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | State and | | | | | Real | | | | Commercial | | | | Political | | | | | Estate | | Agricultural | | and Industrial | | Consumer | | Subdivisions | | Total | As of and for the year ended December 31, 2025: | | | | | | | | | | | | | | | | | Allowance for Credit Losses: | | | | | | | | | | | | | | | | | | Beginning balance January 1, 2025 | $ | 7,215 | | $ | 2 | | $ | 313 | | $ | 98 | | $ | 44 | | $ | 7,672 | Charge-offs | | (2,017) | | | — | | | (942) | | | (35) | | | — | | | (2,994) | Recoveries | | 1 | | | — | | | 29 | | | 3 | | | — | | | 33 | Provision for Credit Losses | | 3,637 | | | — | | | 1,052 | | | 8 | | | 4 | | | 4,701 | Ending Balance | $ | 8,836 | | $ | 2 | | $ | 452 | | $ | 74 | | $ | 48 | | $ | 9,412 | Ending balance: individually | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | 973 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 973 | Ending balance: collectively | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | 7,863 | | $ | 2 | | $ | 452 | | $ | 74 | | $ | 48 | | $ | 8,439 | | | | | | | | | | | | | | | | | | | Reserve for Unfunded Lending Commitments | $ | 54 | | $ | — | | $ | 24 | | $ | — | | $ | 12 | | $ | 90 | | | | | | | | | | | | | | | | | | | Loans Held for Investment: | | | | | | | | | | | | | | | | | | Ending Balance | $ | 853,668 | | $ | 984 | | $ | 66,924 | | $ | 4,953 | | $ | 20,132 | | $ | 946,661 | Ending balance: individually | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | 16,763 | | $ | 279 | | $ | 10 | | $ | — | | $ | — | | $ | 17,052 | Ending balance: collectively | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | 836,905 | | $ | 705 | | $ | 66,914 | | $ | 4,953 | | $ | 20,132 | | $ | 929,609 |
| | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | State and | | | | | Real | | | | Commercial | | | | Political | | | | | Estate | | Agricultural | | and Industrial | | Consumer | | Subdivisions | | Total | As of and for the year ended December 31, 2024: | | | | | | | | | | | | | | | | | Allowance for Credit Losses: | | | | | | | | | | | | | | | | | | Beginning balance January 1, 2024 | | 6,539 | | | 1 | | | 265 | | | 78 | | | 42 | | | 6,925 | Charge-offs | | (345) | | | — | | | (524) | | | (69) | | | — | | | (938) | Recoveries | | 21 | | | — | | | 19 | | | 5 | | | — | | | 45 | Provision for Credit Losses | | 1,000 | | | 1 | | | 553 | | | 84 | | | 2 | | | 1,640 | Ending Balance | $ | 7,215 | | $ | 2 | | $ | 313 | | $ | 98 | | $ | 44 | | $ | 7,672 | Ending balance: individually | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Ending balance: collectively | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | 7,215 | | $ | 2 | | $ | 313 | | $ | 98 | | $ | 44 | | $ | 7,672 | | | | | | | | | | | | | | | | | | | Reserve for Unfunded Lending Commitments | $ | 85 | | $ | — | | $ | 17 | | $ | — | | $ | — | | $ | 102 | | | | | | | | | | | | | | | | | | | Loans Held for Investment: | | | | | | | | | | | | | | | | | | Ending Balance | $ | 850,656 | | $ | 936 | | $ | 66,706 | | $ | 6,390 | | $ | 22,138 | | $ | 946,826 | Ending balance: individually | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | 4,214 | | $ | 309 | | $ | — | | $ | — | | $ | — | | $ | 4,523 | Ending balance: collectively | | | | | | | | | | | | | | | | | | evaluated for impairment | $ | 846,442 | | $ | 627 | | $ | 66,706 | | $ | 6,390 | | $ | 22,138 | | $ | 942,303 |
The Corporation’s activity in the allowance for credit losses on unfunded commitments for the years ended December 31, 2025 and 2024 was as follows: | | | | | | | (Dollars in thousands) | | | | | | | 2025 | | 2024 | Balance at January 1 | | $ | 102 | | $ | 166 | (Release of) provision for credit losses on unfunded commitments | | | (12) | | | (64) | Balance at December 31 | | $ | 90 | | $ | 102 |
During the year ended December 31, 2025, there were six loans to borrowers experiencing financial difficulty that had modifications granted, carrying a combined post-modification recorded investment of $12,671,000. Four loans to borrowers experiencing financial difficulty were modified during the fourth quarter of 2025. The loans experiencing modifications during the fourth quarter of 2025 included one loan carrying a post modification recorded investment of $1,983,000 for which the modification allowed a full payment deferral period of three months, one loan carrying a post modification recorded investment of $8,000 for which the modification allowed interest-only payments for a period of six months, one loan carrying a post modification recorded investment of $9,716,000 for which the modification allowed taxes to be paid by the Corporation on behalf of the borrower and appended on to the principal amount outstanding on the loan, and one loan carrying a post modification balance of $529,000 for which the modification allowed interest-only payments for a period of six months. Two modifications of loans to borrowers experiencing financial difficulty were completed during the second quarter of 2025, one on a loan carrying a post modification recorded investment of $107,000 and one on a loan carrying a post modification recorded investment of $372,000, both of which allowed a period of interest-only payments of eleven and twelve months, respectively. The two loans modified during the second quarter of 2025 were subsequently modified again during the fourth quarter of 2025 which allowed an extension of interest-only payments on each loan for an additional period of four months. There were four modifications granted on loans to borrowers experiencing financial difficulty during the year ended December 31, 2024 which carried a combined post modification recorded investment of $10,183,000. Two modifications of loans to borrowers experiencing financial difficulty were completed during the fourth quarter of 2024, one on a loan carrying a post modification recorded investment of $174,000 to extend the maturity date of the loan by six months and one on a loan carrying a post modification recorded investment of $434,000 to release a portion of the real estate securing the loan. One modification of a loan to a borrower experiencing financial difficulty was completed during the third quarter of 2024 to extend the maturity date of the loan by ten months. The loan carried a post modification recorded investment of $120,000. One modification of a loan to a borrower experiencing financial difficulty was completed during the first quarter of 2024 and allowed a period of interest-only payments of six months. The loan carried a post modification recorded investment of $9,455,000. The outstanding recorded investment of loans to borrowers experiencing financial difficulty was $12,661,000 at December 31, 2025 compared to $10,193,000 at December 31, 2024. There were no unfunded commitments on modified loans to borrowers experiencing financial difficulty as of December 31, 2025 or December 31, 2024. The following table presents the outstanding recorded investment of loans to borrowers experiencing financial difficulty as of December 31, 2025 and December 31, 2024. There were six loan modifications granted on loans to borrowers experiencing financial difficulty as of December 31, 2025 and four loan modifications granted on loans to borrowers experiencing financial difficulty as of December 31, 2024. | | | | | | | (Dollars in thousands) | | | | | | | | December 31, 2025 | Modifications of Loans to Borrowers Experiencing Financial Difficulty: | | | | | | Recorded Investment | | Number of | | Recorded | | % of Loan | | Contracts | | Investment | | Segment | Real Estate: | | | | | | | Non-Accrual | 1 | | $ | 9,703 | | 1.14% | Accruing | 4 | | | 2,951 | | 0.35% | Subtotal - Real Estate: | 5 | | | 12,654 | | 1.48% | | | | | | | | Commercial and Industrial: | | | | | | | Non-Accrual | — | | $ | — | | 0.00% | Accruing | 1 | | | 7 | | 0.01% | Subtotal - Commercial and Industrial: | 1 | | | 7 | | 0.01% | | | | | | | | Total | 6 | | $ | 12,661 | | 1.34% | | | | | | | | (Dollars in thousands) | | | | | | | | December 31, 2024 | Modifications of Loans to Borrowers Experiencing Financial Difficulty: | | | | | | Recorded Investment | | Number of | | Recorded | | % of Loan | | Contracts | | Investment | | Segment | Real Estate: | | | | | | | Non-Accrual | — | | $ | — | | 0.00% | Accruing | 3 | | | 10,019 | | 1.18% | Subtotal - Real Estate: | 3 | | | 10,019 | | 1.18% | | | | | | | | Commercial and Industrial: | | | | | | | Non-Accrual | — | | $ | — | | 0.00% | Accruing | 1 | | | 174 | | 0.26% | Subtotal - Commercial and Industrial: | 1 | | | 174 | | 0.26% | | | | | | | | Total | 4 | | $ | 10,193 | | 1.08% |
At December 31, 2025, there were two modifications of loans to borrowers experiencing financial difficulty totaling $439,000 that were not in compliance with the terms of their restructure compared to December 31, 2024 when there were no modifications of loans to borrowers experiencing financial difficulty that were not in compliance with the terms of their restructure. Of the modifications of loans to borrowers experiencing financial difficulty that were completed during the twelve months preceding December 31, 2025, one loan carrying a post modification recorded investment of $107,000 experienced a payment default during the year ended December 31, 2025, but the loan was less than 30 days past due as of December 31, 2025. Of the modifications of loans to borrowers experiencing financial difficulty that were completed during the twelve months preceding December 31, 2024, two loans experienced payment defaults during the year ended December 31, 2024. One loan carrying a post modification recorded investment of $9,455,000 experienced a payment default during the first quarter of 2024 and a loan carrying a post modification outstanding recorded investment of $120,000 experienced a payment default during the fourth quarter of 2024. Both loans were paid current as of December 31, 2024. The following table presents information regarding modifications of loans to borrowers experiencing financial difficulty that were completed during the years ended December 31, 2025 and 2024. | | | | | | | | | | | | (Dollars in thousands) | | For the Year Ended December 31, 2025 | | | | | Pre-Modification | | Post-Modification | | | | | | | | Outstanding | | Outstanding | | | | | | Number of | | Recorded | | Recorded | | Recorded | | | Contracts | | Investment | | Investment | | Investment | Real Estate | | 5 | | $ | 12,350 | | $ | 12,664 | | $ | 12,654 | Commercial & Industrial | | 1 | | | 7 | | | 7 | | | 7 | Total | | 6 | | $ | 12,357 | | $ | 12,671 | | $ | 12,661 |
| | | | | | | | | | | | (Dollars in thousands) | | For the Year Ended December 31, 2024 | | | | | Pre-Modification | | Post-Modification | | | | | | | | Outstanding | | Outstanding | | | | | | Number of | | Recorded | | Recorded | | Recorded | | | Contracts | | Investment | | Investment | | Investment | Real Estate | | 3 | | $ | 10,009 | | $ | 10,009 | | $ | 10,019 | Commercial & Industrial | | 1 | | | 174 | | | 174 | | | 174 | Total | | 4 | | $ | 10,183 | | $ | 10,183 | | $ | 10,193 | | | | | | | | | | | | |
The following table provides detail regarding the types of loan modifications made for borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024. | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2025 | | | Rate | | Term | | Payment | | | | Number | | | Modification | | Modification | | Modification | | Other | | Modified | Real Estate | | — | | — | | 4 | | 1 | | 5 | Commercial & Industrial | | — | | — | | 1 | | — | | 1 | Total | | — | | — | | 5 | | 1 | | 6 |
“Other” loan modification completed during the year ended December 31, 2025 consisted of payment of taxes by the Corporation on behalf of the borrower, with the amount appended onto the principal balance outstanding on the loan. | | | | | | | | | | | | | For the Year Ended December 31, 2024 | | | Rate | | Term | | Payment | | | | Number | | | Modification | | Modification | | Modification | | Other | | Modified | Real Estate | | — | | — | | 3 | | — | | 3 | Commercial & Industrial | | — | | — | | 1 | | — | | 1 | Total | | — | | — | | 4 | | — | | 4 | | | | | | | | | | | | | | | | | | | | | | |
The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s non-accrual loans are summarized below at December 31, 2025 and 2024. | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | December 31, 2025 | | | Recorded | | Recorded | | | | | Unpaid | | Unpaid | | | | | | | | | Investment | | Investment | | | | | Principal | | Principal | | Total | | | | | | | With | | With No | | Total | | | Balance With | | Balance With | | Unpaid | | | | | | | Related | | Related | | Recorded | | | Related | | No Related | | Principal | | | Related | | | Allowance | | Allowance | | Investment | | | Allowance | | Allowance | | Balance | | | Allowance | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate | | $ | 9,703 | | $ | 7,060 | | $ | 16,763 | | | $ | 9,703 | | $ | 11,049 | | $ | 20,752 | | | $ | 973 | Commercial & Industrial | | | — | | | 10 | | | 10 | | | | — | | | 25 | | | 25 | | | | — | Total | | $ | 9,703 | | $ | 7,070 | | $ | 16,773 | | | $ | 9,703 | | $ | 11,074 | | $ | 20,777 | | | $ | 973 |
| | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | December 31, 2024 | | | Recorded | | Recorded | | | | | Unpaid | | Unpaid | | | | | | | | | Investment | | Investment | | | | | Principal | | Principal | | Total | | | | | | | With | | With No | | Total | | | Balance With | | Balance With | | Unpaid | | | | | | | Related | | Related | | Recorded | | | Related | | No Related | | Principal | | | Related | | | Allowance | | Allowance | | Investment | | | Allowance | | Allowance | | Balance | | | Allowance | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate | | $ | — | | $ | 4,214 | | $ | 4,214 | | | $ | — | | $ | 6,203 | | $ | 6,203 | | | $ | — | Total | | $ | — | | $ | 4,214 | | $ | 4,214 | | | $ | — | | $ | 6,203 | | $ | 6,203 | | | $ | — |
The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan. The following table presents the collateral-dependent loans by segment for the year ended December 31, 2025 and 2024. | | | | | | | (Dollars in thousands) | | | | | | | December 31, 2025 | Loan Segment/Collateral Type | Real Estate | | Other | Real Estate: | | | | | | | 1-4 Family Real Estate | | $ | 328 | | $ | — | Multifamily Real Estate | | | 1,603 | | | — | Non-owner Occupied, Non-Farm, Non-Residential Real Estate | | | 3,884 | | | — | Owner Occupied, Non-Farm, Non-Residential Real Estate | | | 10,948 | | | — | Subtotal - Real Estate: | | | 16,763 | | | — | | | | | | | | Commercial & Industrial | | | | | | | Commercial Motor Vehicle | | $ | — | | $ | 10 | Subtotal - Commercial & Industrial: | | | — | | | 10 | | | | | | | | Agricultural: | | | | | | | Stock | | $ | — | | $ | 279 | Subtotal - Agricultural: | | | — | | | 279 | | | | | | | | Total | | $ | 16,763 | | $ | 289 | | | | | | | | (Dollars in thousands) | | | | | | | December 31, 2024 | Loan Segment/Collateral Type | Real Estate | | Other | Real Estate: | | | | | | | 1-4 Family Real Estate | | $ | 247 | | $ | — | Multifamily Real Estate | | | 3,044 | | | — | Owner Occupied, Non-Farm, Non-Residential Real Estate | | | 923 | | | — | Subtotal - Real Estate: | | | 4,214 | | | — | | | | | | | | Agricultural: | | | | | | | Stock | | $ | — | | $ | 309 | Subtotal - Agricultural: | | | — | | | 309 | | | | | | | | Total | | $ | 4,214 | | $ | 309 |
At December 31, 2024 and 2025, there were no commitments to lend additional funds with respect to individually evaluated loans. Total non-performing assets (which includes loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest) as of December 31, 2025 and 2024 were as follows: | | | | | | | (Dollars in thousands) | | December 31, | | December 31, | | | 2025 | | 2024 | Real Estate | | $ | 16,763 | | $ | 4,214 | Agricultural | | | — | | | — | Commercial and Industrial | | | 10 | | | — | Consumer | | | — | | | — | State and Political Subdivisions | | | — | | | — | Total non-accrual loans | | | 16,773 | | | 4,214 | Foreclosed assets held for resale | | | — | | | — | Loans past-due 90 days or more and still accruing interest | | | 146 | | | 756 | Total non-performing assets | | $ | 16,919 | | $ | 4,970 |
If interest on non-accrual loans had been accrued at original contract rates, interest income would have increased by $2,689,000 in 2025 and $2,371,000 in 2024. There were no foreclosed assets held for resale at December 31, 2025 or 2024. Consumer mortgage loans secured by residential real estate for which the Corporation entered into formal foreclosure proceedings but for which physical possession of the property has yet to be obtained amounted to $0 at December 31, 2025 and 2024. When applicable, consumer mortgage loans secured by residential real estate for which the Corporation has entered into formal foreclosure proceedings but for which physical possession has yet to be obtained are not included in the foreclosed asset balances. The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | 90 Days | | | | | | | | | | | | | | | | | | | | | Or Greater | | | | | | | | | | | | | | | | | | | | | Past Due | | | | | | | | | 90 Days | | | | | | Current- | | | | | and Still | | | 30-59 Days | | 60-89 Days | | or Greater | | Total | | | 29 Days | | Total | | Accruing | | | Past Due | | Past Due | | Past Due | | Past Due | | Past Due | | Loans | | Interest | December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | Real Estate | | $ | 3,193 | | $ | 2,246 | | $ | 6,684 | | $ | 12,123 | | $ | 841,545 | | $ | 853,668 | | $ | 146 | Agricultural | | | — | | | — | | | — | | | — | | | 984 | | | 984 | | | — | Commercial and Industrial | | | 333 | | | 24 | | | 10 | | | 367 | | | 66,557 | | | 66,924 | | | — | Consumer | | | 126 | | | — | | | — | | | 126 | | | 4,827 | | | 4,953 | | | — | State and Political Subdivisions | | | — | | | — | | | — | | | — | | | 20,132 | | | 20,132 | | | — | Total | | $ | 3,652 | | $ | 2,270 | | $ | 6,694 | | $ | 12,616 | | $ | 934,045 | | $ | 946,661 | | $ | 146 |
| | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | 90 Days | | | | | | | | | | | | | | | | | | | | | Or Greater | | | | | | | | | | | | | | | | | | | | | Past Due | | | | | | | | | 90 Days | | | | | | Current- | | | | | and Still | | | 30-59 Days | | 60-89 Days | | or Greater | | Total | | | 29 Days | | Total | | Accruing | | | Past Due | | Past Due | | Past Due | | Past Due | | Past Due | | Loans | | Interest | December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | Real Estate | | $ | 4,247 | | $ | 221 | | $ | 4,970 | | $ | 9,438 | | $ | 841,218 | | $ | 850,656 | | $ | 756 | Agricultural | | | — | | | — | | | — | | | — | | | 936 | | | 936 | | | — | Commercial and Industrial | | | 378 | | | — | | | — | | | 378 | | | 66,328 | | | 66,706 | | | — | Consumer | | | 11 | | | 2 | | | — | | | 13 | | | 6,377 | | | 6,390 | | | — | State and Political Subdivisions | | | — | | | — | | | — | | | — | | | 22,138 | | | 22,138 | | | — | Total | | $ | 4,636 | | $ | 223 | | $ | 4,970 | | $ | 9,829 | | $ | 936,997 | | $ | 946,826 | | $ | 756 |
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