Net deferred loan origination fees at March 31, 2026 and December 31, 2025 totaled $2.3 million and $2.2 million, respectively.

In the normal course of banking business, risks related to specific loan categories are as follows:

Real Estate Loans – Real estate loans are typically made to consumers and businesses and are secured by real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by the economy as well as borrower-specific occurrences. Also impacting credit risk are any shortfalls in the value of the real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the collateral.

Residential lending repayment is generally dependent on economic and market conditions in the Company's lending area. Commercial real estate, commercial and construction loan repayments are generally dependent on the operations of the related properties or the financial condition of its borrower or guarantor. Accordingly, repayment of such loans can be more susceptible to adverse conditions in the real estate market and the regional economy.

Marine Loans – Marine loans are typically made to consumers and are secured by boats. Credit risk is similar to real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. Marine loans may entail greater risk than residential mortgage loans, as they are collateralized by assets that depreciate rapidly. Repossessed collateral for a defaulted loan may not provide an adequate source of repayment for the outstanding and small remaining deficiency often does not warrant further substantial collection efforts against the borrower.

Other Consumer – Other consumer loans include installment loans and personal lines of credit which may be secured or unsecured. Credit risk is similar to real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan, if any. Consumer loans may entail greater risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower.

Guaranteed by the U.S. Government – Loans guaranteed by the U.S. Government do not present similar risks as reflected in the other categories mentioned herein because of an explicit guarantee is provided by the government, therefore substantially mitigating any risk of loss in the event of credit deterioration.

Commercial – Commercial loans are secured or unsecured loans used for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business, which may be affected by competition, rising interest rates, tariffs, regulatory changes and adverse conditions in the local and regional economy.

Loans can be current but classified as non-accrual due to customer operating results or payment history. All interest accrued but not collected from loans that are placed on non-accrual status or charged off is reversed against interest income. In accordance with the Company’s policy, such interest income is recognized on a cash basis or cost-recovery method, until qualifying for return to accrual status. Interest that would have been accrued under the terms of the non-accrual loans had such loans been performing according to their terms was approximately $77,000 for the three months ended March 31, 2026. There was no material nonaccrual loan interest recognized in income during the first quarter of 2025.

The Company considers a loan to be past due or delinquent when the terms of the contractual obligation are not met by the borrower. An analysis of days past due loans as of March 31, 2026 was as follows:

An analysis of days past due loans as of December 31, 2025 was as follows:


	December 31, 2025
	30 - 59		60 - 89		90+
	Days		Days		Days		Total		Current		Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Loans		Loans
Real estate
One to four family - owner occupied	$	4,700	$	379	$	787	$	5,866	$	158,098	$	163,964
One to four family - non owner occupied		104		—		174		278		94,233		94,511
Commercial owner occupied		—		566		294		860		78,870		79,730
Commercial investor		—		—		—		—		321,675		321,675
Construction and land		—		—		26		26		36,415		36,441
Farm loans		—		—		—		—		7,231		7,231
Total real estate loans		4,804		945		1,281		7,030		696,522		703,552

Marine and other consumer loans		384		44		10		438		14,476		14,914
Guaranteed by U.S. Government		—		—		—		—		2,175		2,175
Commercial		—		—		380		380		33,900		34,280
Total consumer and commercial loans		384		44		390		818		50,551		51,369

Total loans	$	5,188	$	989	$	1,671	$	7,848	$	747,073	$	754,921

Term Loans by Origination Year


(dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at March 31, 2026	2026		2025		2024		2023		2022		Prior		Revolving		Total
One to four family - owner occupied
Pass	$	5,828	$	33,780	$	18,959	$	5,284	$	7,448	$	78,467	$	10,277	$	160,043
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		709		—		709
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total One to four family - owner occupied	$	5,828	$	33,780	$	18,959	$	5,284	$	7,448	$	79,176	$	10,277	$	160,752
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

One to four family - non owner occupied
Pass	$	2,501	$	8,380	$	4,093	$	12,680	$	26,281	$	40,088	$	—	$	94,023
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		307		—		307
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total One to four family - non owner occupied	$	2,501	$	8,380	$	4,093	$	12,680	$	26,281	$	40,395	$	—	$	94,330
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial owner occupied
Pass	$	3,754	$	3,937	$	4,065	$	19,653	$	10,241	$	35,871	$	—	$	77,521
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		1,902		—		1,902
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial owner occupied	$	3,754	$	3,937	$	4,065	$	19,653	$	10,241	$	37,773	$	—	$	79,423
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial investor
Pass	$	3,121	$	34,487	$	48,058	$	57,986	$	77,290	$	107,068	$	—	$	328,010
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—				—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial investor	$	3,121	$	34,487	$	48,058	$	57,986	$	77,290	$	107,068	$	—	$	328,010
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and land
Pass	$	408	$	8,068	$	14,025	$	267	$	511	$	1,131	$	—	$	24,410
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		26		—		26
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Construction and land	$	408	$	8,068	$	14,025	$	267	$	511	$	1,157	$	—	$	24,436
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farm loans
Pass	$	—	$	—	$	308	$	—	$	297	$	4,727	$	—	$	5,332
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Farm loans	$	—	$	—	$	308	$	—	$	297	$	4,727	$	—	$	5,332
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Marine and other consumer loans
Pass	$	10	$	818	$	1,904	$	2,351	$	1,557	$	7,433	$	—	$	14,073
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		362		—		362
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Marine and other consumer loans	$	10	$	818	$	1,904	$	2,351	$	1,557	$	7,795	$	—	$	14,435
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	3

Guaranteed by U.S. Government
Pass	$	—	$	—	$	—	$	—	$	—	$	2,088	$	—	$	2,088
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Guaranteed by U.S. Government	$	—	$	—	$	—	$	—	$	—	$	2,088	$	—	$	2,088
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial
Pass	$	128	$	12,177	$	6,360	$	126	$	1,209	$	6,422	$	—	$	26,422
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		380		—		—		380
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial	$	128	$	12,177	$	6,360	$	126	$	1,589	$	6,422	$	—	$	26,802
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


(dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at March 31, 2026	2026		2025		2024		2023		2022		Prior		Revolving		Total
Total Loans
Pass	$	15,750	$	101,647	$	97,772	$	98,347	$	124,834	$	283,295	$	10,277	$	731,922
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		380		3,306		—		3,686
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total loans	$	15,750	$	101,647	$	97,772	$	98,347	$	125,214	$	286,601	$	10,277	$	735,608

Term Loans by Origination Year


(dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
One to four family - owner occupied
Pass	$	34,231	$	23,919	$	5,315	$	7,503	$	12,345	$	68,285	$	11,790	$	163,388
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		329		247		—		576
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total One to four family - owner occupied	$	34,231	$	23,919	$	5,315	$	7,503	$	12,674	$	68,532	$	11,790	$	163,964
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

One to four family - non owner occupied
Pass	$	8,148	$	4,737	$	12,480	$	26,808	$	14,860	$	27,113	$	—	$	94,146
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		365		—		365
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total One to four family - non owner occupied	$	8,148	$	4,737	$	12,480	$	26,808	$	14,860	$	27,478	$	—	$	94,511
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial owner occupied
Pass	$	3,905	$	4,100	$	19,694	$	10,299	$	5,646	$	34,164	$	—	$	77,808
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		294		1,628		—		1,922
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial owner occupied	$	3,905	$	4,100	$	19,694	$	10,299	$	5,940	$	35,792	$	—	$	79,730
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial investor
Pass	$	34,551	$	34,460	$	61,241	$	80,765	$	66,609	$	44,049	$	—	$	321,675
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial investor	$	34,551	$	34,460	$	61,241	$	80,765	$	66,609	$	44,049	$	—	$	321,675
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and land
Pass	$	7,957	$	26,805	$	271	$	348	$	448	$	586	$	—	$	36,415
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		26		—		26
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Construction and land	$	7,957	$	26,805	$	271	$	348	$	448	$	612	$	—	$	36,441
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Farm loans
Pass	$	—	$	311	$	—	$	300	$	1,744	$	4,876	$	—	$	7,231
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Farm loans	$	—	$	311	$	—	$	300	$	1,744	$	4,876	$	—	$	7,231
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Marine and other consumer loans
Pass	$	883	$	2,042	$	2,408	$	1,587	$	4,698	$	3,296	$	—	$	14,914
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Marine and other consumer loans	$	883	$	2,042	$	2,408	$	1,587	$	4,698	$	3,296	$	—	$	14,914
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	14

Guaranteed by U.S. Government
Pass	$	—	$	—	$	—	$	—	$	—	$	2,175	$	—	$	2,175
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Guaranteed by U.S. Government	$	—	$	—	$	—	$	—	$	—	$	2,175	$	—	$	2,175
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial
Pass	$	12,267	$	6,851	$	138	$	1,339	$	4,726	$	8,579	$	—	$	33,900
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		380		—		—		—		380
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total Commercial	$	12,267	$	6,851	$	138	$	1,719	$	4,726	$	8,579	$	—	$	34,280
Current Period Gross Write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


(dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
Balance at December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Total Loans
Pass	$	101,942	$	103,225	$	101,547	$	128,949	$	111,076	$	193,123	$	11,790	$	751,652
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		380		623		2,266		—		3,269
Doubtful		—		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—		—
Total loans	$	101,942	$	103,225	$	101,547	$	129,329	$	111,699	$	195,389	$	11,790	$	754,921

Classified Assets. Federal regulations provide for the classification of loans and other assets, such as debt and equity securities considered to be of lesser quality, as “substandard,” “doubtful” or “loss.” An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss allowance is not warranted. Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention” by our management.

When an insured institution classifies problem assets as either substandard or doubtful, it may establish general allowances in an amount deemed prudent by management to cover probable accrued losses. General allowances represent loss allowances which have been established to cover probable accrued losses associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. When an insured institution classifies problem assets as “loss,” it is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount. An institution’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by the regulatory authorities, such that additional general or specific loss allowances may be required.

In connection with the filing of our periodic reports with the FDIC and in accordance with our classification of assets policy, we regularly review the problem loans in our portfolio to determine whether any loans require classification in accordance with applicable regulations.

Through our loan evaluation process, we have identified certain loans for which the primary source of loan repayment may no longer be a viable option. The Company is dependent on the liquidation of the collateral to provide funds for repayment of the loan. The following table shows the loans determined by management to be collateral dependent at March 31, 2026.

Note 3 – Loans Receivable

Term Loans by Origination Year

Term Loans by Origination Year