Loans

3 Months Ended

Mar. 31, 2026

NOTE 3: Loans

The Corporation’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the following table. The Corporation has elected to exclude accrued interest receivable, totaling $8.78 million and $9.04 million at March 31, 2026 and December 31, 2025, respectively, from the recorded balance of loans.


		March 31,			December 31,
(Dollars in thousands)		2026			2025
Commercial real estate		$	870,643		$	835,432
Commercial business			118,627			115,710
Construction - commercial real estate			75,262			99,604
Land acquisition and development			82,475			66,248
Builder lines			31,058			37,938
Construction - consumer real estate			32,540			29,288
Residential mortgage			316,677			319,536
Equity lines			76,920			76,460
Other consumer			10,204			10,085
Consumer finance - automobiles			405,473			406,312
Consumer finance - marine and recreational vehicles			55,173			57,963
Subtotal			2,075,052			2,054,576
Less allowance for credit losses			(39,665)			(39,677)
Loans, net		$	2,035,387		$	2,014,899

Other consumer loans included $269,000 and $240,000 of demand deposit overdrafts at March 31, 2026 and December 31, 2025, respectively.

The following table shows the aging of the Corporation’s loan portfolio, by class, at March 31, 2026.


		30-59		60-89		90+								90+ Days
		Days		Days		Days		Total						Past Due and
(Dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current¹		Total Loans		Accruing
Commercial real estate		$	—	$	—	$	—	$	—	$	870,643	$	870,643	$	—
Commercial business			162		109		—		271		118,356		118,627		—
Construction - commercial real estate			—		—		—		—		75,262		75,262		—
Land acquisition and development			—		—		—		—		82,475		82,475		—
Builder lines			—		—		—		—		31,058		31,058		—
Construction - consumer real estate			—		—		—		—		32,540		32,540		—
Residential mortgage			1,435		123		905		2,463		314,214		316,677		88
Equity lines			125		—		17		142		76,778		76,920		17
Other consumer			35		—		—		35		10,169		10,204		—
Consumer finance - automobiles			12,655		1,477		890		15,022		390,451		405,473		—
Consumer finance - marine and recreational vehicles			393		—		23		416		54,757		55,173		—
Total		$	14,805	$	1,709	$	1,835	$	18,349	$	2,056,703	$	2,075,052	$	105

For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $104,000, 30-59 days past due of $79,000, 60-89 days past due of $99,000 and 90+ days past due of $1.73 million.

The following table shows the aging of the Corporation’s loan portfolio, by class, at December 31, 2025.


		30-59		60-89		90+								90+ Days
		Days		Days		Days		Total						Past Due and
(Dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current¹		Total Loans		Accruing
Commercial real estate		$	—	$	262	$	—	$	262	$	835,170	$	835,432	$	—
Commercial business			8		—		—		8		115,702		115,710		—
Construction - commercial real estate			—		—		—		—		99,604		99,604		—
Land acquisition and development			—		—		—		—		66,248		66,248		—
Builder lines			—		—		—		—		37,938		37,938		—
Construction - consumer real estate			—		—		—		—		29,288		29,288		—
Residential mortgage			1,019		111		813		1,943		317,593		319,536		—
Equity lines			155		65		23		243		76,217		76,460		23
Other consumer			17		—		—		17		10,068		10,085		—
Consumer finance - automobiles			16,741		2,129		1,022		19,892		386,420		406,312		—
Consumer finance - marine and recreational vehicles			429		37		—		466		57,497		57,963		—
Total		$	18,369	$	2,604	$	1,858	$	22,831	$	2,031,745	$	2,054,576	$	23

1For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $219,000, 30-59 days past due of $17,000, 60-89 days past due of $86,000 and 90+ days past due of $1.84 million.

The following table shows the Corporation’s recorded balance of loans on nonaccrual status as of March 31, 2026 and December 31, 2025. The Corporation recognized $13,000 in interest income on loans on nonaccrual status as of March 31, 2026 and had no reversals of interest income upon placing loans on nonaccrual status during the three months ended March 31, 2026. All nonaccrual loans at March 31, 2026 and December 31, 2025 had an allowance for credit losses, with none individually evaluated.


		March 31,		December 31,
(Dollars in thousands)		2026		2025
Commercial business		$	2	$	—
Residential mortgage			1,097		1,135
Consumer finance - automobiles			890		1,022
Consumer finance - marine and recreational vehicles			23		—
Total		$	2,012	$	2,157

Occasionally, the Corporation modifies loans to borrowers experiencing financial difficulties by providing principal forgiveness, term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the allowance for credit losses due to the measurement methodologies used in its estimate, the allowance for credit losses is typically not adjusted upon modification. When principal forgiveness is provided at modification, the amount forgiven is charged against the allowance for credit losses. In some cases, the Corporation may provide multiple types of modifications on one loan and when multiple types of modifications occur within the same period, the combination of modifications is separately reported. There were no loans to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2026 and 2025.

The Corporation closely monitors the performance of modified loans to understand the effectiveness of its modification efforts. Upon the determination that all or a portion of a modified loan is uncollectible, that amount is charged against the allowance for credit losses. There were no payment defaults during the three months ended March 31, 2026 and 2025 of loans to borrowers experiencing financial difficulties that were modified during the previous twelve months and all were current as of March 31, 2026.