Note 3 - Loans Receivable

6 Months Ended

Jun. 30, 2026

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,
		2026				2025
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	189,376			$	183,793
Commercial real estate			940,507				918,839

Other loans:
Home equity			108,629				108,073
Consumer			21,459				24,424
Commercial			298,373				283,890

Total			1,558,344				1,519,019

Allowance for credit losses			(17,640	)			(17,370	)
Total loans, net		$	1,540,704			$	1,501,649

Included in the above are loans guaranteed by U.S. government agencies totaling $15,853,000 and $12,091,000 at June 30, 2026 and December 31, 2025, respectively.

The following table provides allowance for credit losses activity for the three months ended June 30, 2026.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, April 1, 2026		$	1,973			$	11,363			$	551			$	45			$	3,498			$	17,430
Charge-offs			-				-				-				(98	)			(103	)			(201	)
Recoveries			-				5				-				1				2				8
(Recapture) provision			(215	)			252				12				247				107				403
Total ending allowance balance, June 30, 2026		$	1,758			$	11,620			$	563			$	195			$	3,504			$	17,640

The following table provides allowance for credit losses activity for the six months ended June 30, 2026.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, January 1, 2026		$	1,965			$	11,295			$	547			$	84			$	3,479			$	17,370
Charge-offs			-				-				-				(138	)			(117	)			(255	)
Recoveries			-				9				-				1				3				13
(Recapture) provision			(207	)			316				16				248				139				512
Total ending allowance balance, June 30, 2026		$	1,758			$	11,620			$	563			$	195			$	3,504			$	17,640

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

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

		June 30, 2026
		2026				2025				2024				2023				2022				Prior				Revolving Loans				Total Loans
		(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass		$	13,410			$	16,430			$	14,306			$	20,430			$	24,069			$	51,984			$	1,743			$	142,372
Substandard			-				-				-				-				712				664				-				1,376
Total Residential 1-4 family			13,410				16,430				14,306				20,430				24,781				52,648				1,743				143,748
Current-period gross charge-offs			-				-				-				-				-				-				-				-
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass			17,404				16,612				640				-				10,129				-				494				45,279
Special Mention			-				-				349				-				-				-				-				349
Total Residential 1-4 family construction			17,404				16,612				989				-				10,129				-				494				45,628
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL REAL ESTATE
Pass			55,737				47,438				68,161				60,963				169,996				232,554				38,573				673,422
Special Mention			-				-				-				784				380				1,966				2,803				5,933
Substandard			-				-				-				487				-				4,539				-				5,026
Total Commercial real estate			55,737				47,438				68,161				62,234				170,376				239,059				41,376				684,381
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass			5,576				37,687				11,524				7,352				12,711				17,249				5,089				97,188
Special Mention			-				-				-				755				-				-				-				755
Substandard			-				-				-				-				-				908				-				908
Total Commercial construction and development			5,576				37,687				11,524				8,107				12,711				18,157				5,089				98,851
Current-period gross charge-offs			-				-				-				-				-				-				-				-
FARMLAND
Pass			8,821				27,434				18,914				14,120				25,211				56,659				1,805				152,964
Special Mention			556				-				-				1,099				39				66				-				1,760
Substandard			-				-				237				-				1,118				1,140				56				2,551
Total Farmland			9,377				27,434				19,151				15,219				26,368				57,865				1,861				157,275
Current-period gross charge-offs			-				-				-				-				-				-				-				-
HOME EQUITY
Pass			4,876				1,855				1,167				870				605				1,908				96,527				107,808
Special Mention			-				-				-				-				-				18				226				244
Substandard			-				-				-				-				-				58				519				577
Total Home Equity			4,876				1,855				1,167				870				605				1,984				97,272				108,629
Current-period gross charge-offs			-				-				-				-				-				-				-				-
CONSUMER
Pass			4,272				6,033				4,079				2,639				1,601				905				1,786				21,315
Special Mention			-				-				-				-				-				-				18				18
Substandard			-				50				-				74				2				-				-				126
Total Consumer			4,272				6,083				4,079				2,713				1,603				905				1,804				21,459
Current-period gross charge-offs			-				65				52				13				7				-				1				138
COMMERCIAL
Pass			23,750				26,454				23,370				17,706				7,827				21,012				39,339				159,458
Special Mention			139				-				-				285				142				44				192				802
Substandard			-				-				1,001				-				-				110				4				1,115
Doubtful			-				82				-				-				-				-				-				82
Total Commercial			23,889				26,536				24,371				17,991				7,969				21,166				39,535				161,457
Current-period gross charge-offs			-				-				63				40				-				14				-				117
AGRICULTURAL
Pass			20,201				22,367				8,762				4,814				3,270				2,361				69,578				131,353
Special Mention			1,054				530				-				851				-				-				549				2,984
Substandard			-				-				-				1,450				-				902				227				2,579
Total Agricultural			21,255				22,897				8,762				7,115				3,270				3,263				70,354				136,916
Current-period gross charge-offs			-				-				-				-				-				-				-				-
TOTAL LOANS
Pass			154,047				202,310				150,923				128,894				255,419				384,632				254,934				1,531,159
Special Mention			1,749				530				349				3,774				561				2,094				3,788				12,845
Substandard			-				50				1,238				2,011				1,832				8,321				806				14,258
Doubtful			-				82				-				-				-				-				-				82
Total		$	155,796			$	202,972			$	152,510			$	134,679			$	257,812			$	395,047			$	259,528			$	1,558,344

		December 31, 2025
		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total Loans
		(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass		$	20,044			$	15,428			$	22,525			$	29,851			$	17,751			$	40,339			$	1,333			$	147,271
Substandard			-				-				-				719				-				525				-				1,244
Total Residential 1-4 family			20,044				15,428				22,525				30,570				17,751				40,864				1,333				148,515
Current-period gross charge-offs			-				-				-				-				-				-				-				-
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass			19,065				3,975				1,760				10,129				-				-				-				34,929
Special Mention			-				349				-				-				-				-				-				349
Total Residential 1-4 family construction			19,065				4,324				1,760				10,129				-				-				-				35,278
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL REAL ESTATE
Pass			41,530				51,964				63,566				177,502				112,350				141,336				39,155				627,403
Special Mention			-				-				-				407				-				1,265				2,989				4,661
Substandard			-				-				512				-				424				2,970				-				3,906
Total Commercial real estate			41,530				51,964				64,078				177,909				112,774				145,571				42,144				635,970
Current-period gross charge-offs			-				-				-				-				-				33				-				33
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass			44,051				26,041				9,483				14,272				7,325				11,853				6,339				119,364
Substandard			-				-				-				-				-				925				-				925
Total Commercial construction and development			44,051				26,041				9,483				14,272				7,325				12,778				6,339				120,289
Current-period gross charge-offs			-				-				-				-				-				-				-				-
FARMLAND
Pass			30,610				19,993				16,219				26,109				17,580				45,784				1,961				158,256
Special Mention			-				-				827				570				62				719				-				2,178
Substandard			-				188				55				1,118				-				729				56				2,146
Total Farmland			30,610				20,181				17,101				27,797				17,642				47,232				2,017				162,580
Current-period gross charge-offs			-				-				-				-				-				-				-				-
HOME EQUITY
Pass			2,162				1,218				1,018				2,804				281				2,227				97,660				107,370
Special Mention			-				-				-				-				-				21				348				369
Substandard			-				-				33				-				40				11				250				334
Total Home Equity			2,162				1,218				1,051				2,804				321				2,259				98,258				108,073
Current-period gross charge-offs			-				1				-				-				-				26				-				27
CONSUMER
Pass			9,069				5,536				3,899				2,312				654				670				1,973				24,113
Special Mention			-				-				6				-				-				-				-				6
Substandard			113				59				92				10				-				16				15				305
Total Consumer			9,182				5,595				3,997				2,322				654				686				1,988				24,424
Current-period gross charge-offs			-				17				47				14				-				83				14				175
COMMERCIAL
Pass			27,402				26,864				19,468				13,647				10,284				15,376				34,160				147,201
Special Mention			-				-				311				164				-				-				347				822
Substandard			92				1,111				41				-				18				142				4				1,408
Total Commercial			27,494				27,975				19,820				13,811				10,302				15,518				34,511				149,431
Current-period gross charge-offs			-				-				-				6				-				-				-				6
AGRICULTURAL
Pass			42,889				15,230				7,802				5,210				2,415				2,501				52,014				128,061
Special Mention			442				1,112				1,590				2				17				626				543				4,332
Substandard			-				1,035				824				-				-				207				-				2,066
Total Agricultural			43,331				17,377				10,216				5,212				2,432				3,334				52,557				134,459
Current-period gross charge-offs			-				-				-				-				-				-				-				-
TOTAL LOANS
Pass			236,822				166,249				145,740				281,836				168,640				260,086				234,595				1,493,968
Special Mention			442				1,461				2,734				1,143				79				2,631				4,227				12,717
Substandard			205				2,393				1,557				1,847				482				5,525				325				12,334
Total		$	237,469			$	170,103			$	150,031			$	284,826			$	169,201			$	268,242			$	239,147			$	1,519,019

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

		June 30, 2026
		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		$	1,858			$	84			$	1,942			$	184			$	-			$	141,622			$	143,748
Residential 1-4 family construction			-				-				-				-				-				45,628				45,628
Commercial real estate			838				555				1,393				420				-				682,568				684,381
Commercial construction and development			533				-				533				1				-				98,317				98,851
Farmland			1,868				-				1,868				815				-				154,592				157,275
Other loans:
Home equity			247				-				247				811				-				107,571				108,629
Consumer			240				-				240				49				24				21,146				21,459
Commercial			624				-				624				73				86				160,674				161,457
Agricultural			52				565				617				498				-				135,801				136,916
Total		$	6,260			$	1,204			$	7,464			$	2,851			$	110			$	1,547,919			$	1,558,344

		December 31, 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		$	1,591			$	48			$	1,639			$	298			$	-			$	146,578			$	148,515
Residential 1-4 family construction			-				-				-				-				-				35,278				35,278
Commercial real estate			660				-				660				420				-				634,890				635,970
Commercial construction and development			213				-				213				1				-				120,075				120,289
Farmland			481				841				1,322				308				-				160,950				162,580
Other loans:
Home equity			637				-				637				395				-				107,041				108,073
Consumer			203				-				203				101				109				24,011				24,424
Commercial			557				10				567				183				96				148,585				149,431
Agricultural			168				2,645				2,813				177				-				131,469				134,459
Total		$	4,510			$	3,544			$	8,054			$	1,883			$	205			$	1,508,877			$	1,519,019

Interest income recognized on nonaccrual loans for the three and six months ended June 30, 2026 and 2025 is considered insignificant. Interest payments received on a cash basis related to nonaccrual loans were $247,000 at June 30, 2026 and $262,000 at December 31, 2025.

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

		June 30, 2026
		Real Estate				Business Assets				Other
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	897			$	-			$	-
Commercial real estate			93				975				-
Commercial construction and development			1				-				-
Farmland			2,651				-				-
Other loans:
Home equity			474				-				-
Consumer			-				-				69
Commercial			-				248				4
Agricultural			-				857				-
Total		$	4,116			$	2,080			$	73

		December 31, 2025
		Real Estate				Business Assets				Other
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	822			$	-			$	-
Commercial real estate			97				492				-
Commercial construction and development			1				-				-
Farmland			1,143				-				-
Other loans:
Home equity			278				-				-
Consumer			-				-				202
Commercial			-				482				14
Agricultural			-				2,645				-
Total		$	2,341			$	3,619			$	216

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 period end for the loans modified to borrowers experiencing financial difficulty.

There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2026.

		As of or For the
		Six Months Ended
		June 30, 2026
		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 Amortized Cost Basis				Total Number of Loans
		(Dollars in Thousands)
Other loans:
Agricultural		$	156				0.11	%		$	-				0.00	%		$	156				1
Total		$	156							$	-							$	156				1

		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 Amortized Cost Basis				Total Number of Loans
		(Dollars in Thousands)
Real estate loans:
Residential 1-4 family		$	625				0.42	%		$	-				0.00	%		$	625				1
Farmland			108				0.07				-				0.00				108				1
Other loans:
Home equity			70				0.07				-				0.00				70				1
Agricultural			150				0.10				6				0.00				156				2
Total		$	953							$	6							$	959				5

		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 Amortized Cost Basis				Total Number of Loans
		(Dollars in Thousands)
Real estate loans:
Residential 1-4 family		$	625				0.42	%		$	-				0.00	%		$	625				1
Commercial real estate			-				0.00				209				0.03				209				1
Farmland			108				0.07				-				0.00				108				1
Other loans:
Home equity			114				0.11				-				0.00				114				2
Agricultural			403				0.26				6				0.00				409				4
Total		$	1,250							$	215							$	1,465				9

During the three and six months ended June 30, 2026 and 2025, no loans modified for borrowers experiencing financial difficulty within the previous twelve months experienced a payment default.