v3.26.1
Loans and Leases (Tables)
 6 Months Ended
Jun. 30, 2026
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]  
Schedule of Loan Portfolio

As of June 30, 2026 and December 31, 2025, the composition of the loan portfolio by portfolio segment was as follows:

 

 

June 30, 2026

 

December 31, 2025

 

Real estate loans:

 

 

 

 

Construction, land development and other land loans

$

41,062

 

$

32,618

 

Secured by 1-4 family residential properties

 

63,093

 

 

66,996

 

Secured by multi-family residential properties

 

119,362

 

 

117,769

 

Secured by non-residential commercial real estate

 

181,480

 

 

200,699

 

Commercial and industrial loans and leases ("C&I") (1)

 

46,834

 

 

48,360

 

Consumer loans:

 

 

 

 

Direct

 

4,379

 

 

4,844

 

Indirect

 

404,425

 

 

381,732

 

Total loans

 

860,635

 

 

853,018

 

   Less: Allowance for credit losses on loans and leases

 

10,882

 

 

10,704

 

 Net loans (2)

$

849,753

 

$

842,314

 

 

 

(1)
Includes equipment financing leases, which totaled $11.5 million as of June 30, 2026 and $12.6 million as of December 31, 2025.
(2)
Loans are presented net of unearned income and unamortized deferred fees and costs of $0.4 million and $0.6 million as of June 30, 2026 and December 31, 2025, respectively. Loans are also presented net of unamortized premiums associated with indirect loans of $17.0 million and $15.6 million as of June 30, 2026 and December 31, 2025, respectively.
Allowance for Credit Losses on Loans and Leases

The following tables present changes in the ACL on loans and leases, as well as unfunded lending commitments, during the six months ended June 30, 2026 and 2025:

 

 

 

As of and for the Six Months Ended June 30, 2026

 

 

 

Construction,
Land
Development,
and Other

 

 

Real Estate
1-4
Family

 

 

Real
Estate
Multi-
Family

 

 

Non-
Residential Commercial Real estate

 

 

Commercial and
Industrial

 

 

Direct
Consumer

 

 

Indirect
Consumer

 

 

Total

 

 

 

(Dollars in Thousands)

 

Allowance for credit losses on loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

222

 

 

$

371

 

 

$

666

 

 

$

1,420

 

 

$

399

 

 

$

51

 

 

$

7,575

 

 

$

10,704

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(48

)

 

 

—

 

 

 

(3

)

 

 

(1,335

)

 

 

(1,386

)

Recoveries

 

 

 

 

 

10

 

 

 

—

 

 

 

12

 

 

 

14

 

 

 

62

 

 

 

156

 

 

 

254

 

Provision for (recovery of) credit losses on loans and leases

 

 

(18

)

 

 

(57

)

 

 

(51

)

 

 

(175

)

 

 

(60

)

 

 

(88

)

 

 

1,759

 

 

 

1,310

 

Allowance for credit losses on loans and leases

 

$

204

 

 

$

324

 

 

$

615

 

 

$

1,209

 

 

$

353

 

 

$

22

 

 

$

8,155

 

 

$

10,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on unfunded lending commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

254

 

 

$

1

 

 

$

46

 

 

$

64

 

 

$

38

 

 

$

2

 

 

$

—

 

 

$

405

 

Provision for (recovery of) credit losses on unfunded lending commitments

 

 

(66

)

 

 

(1

)

 

 

3

 

 

 

(51

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

(117

)

Allowance for credit losses on unfunded lending commitments

 

$

188

 

 

$

—

 

 

$

49

 

 

$

13

 

 

$

36

 

 

$

2

 

 

$

—

 

 

$

288

 

 

 

 

 

 

As of and for the Six Months Ended June 30, 2025

 

 

 

Construction,
Land
Development,
and Other

 

 

Real Estate
1-4
Family

 

 

Real
Estate
Multi-
Family

 

 

Non-
Residential Commercial Real estate

 

 

Commercial and
Industrial

 

 

Direct
Consumer

 

 

Indirect
Consumer

 

 

Total

 

 

 

(Dollars in Thousands)

 

Allowance for credit losses on loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

352

 

 

$

406

 

 

$

546

 

 

$

1,428

 

 

$

1,531

 

 

$

49

 

 

$

5,872

 

 

$

10,184

 

Charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,191

)

 

 

(5

)

 

 

(1,017

)

 

 

(2,213

)

Recoveries

 

 

—

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

107

 

 

 

118

 

 

 

252

 

Provision for (recovery of) credit losses on loans and leases

 

 

(69

)

 

 

(5

)

 

 

168

 

 

 

177

 

 

 

647

 

 

 

(68

)

 

 

2,315

 

 

 

3,165

 

Allowance for credit losses on loans and leases

 

$

283

 

 

$

412

 

 

$

714

 

 

$

1,605

 

 

$

1,003

 

 

$

83

 

 

$

7,288

 

 

$

11,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on unfunded lending commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

280

 

 

$

1

 

 

$

43

 

 

$

16

 

 

$

34

 

 

$

2

 

 

$

—

 

 

$

376

 

Provision for (recovery of) credit losses on unfunded lending commitments

 

 

82

 

 

 

—

 

 

 

2

 

 

 

(9

)

 

 

5

 

 

 

—

 

 

 

—

 

 

 

80

 

Allowance for credit losses on unfunded lending commitments

 

$

362

 

 

$

1

 

 

$

45

 

 

$

7

 

 

$

39

 

 

$

2

 

 

$

—

 

 

$

456

 
Loans and Leases By Credit Quality Indicators

The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of June 30, 2026, as well as gross charge-offs for the six months ended June 30, 2026.

 

 

 

 

 

June 30, 2026

 

 

 

 

 

Loans at Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Total

 

 

 

 

 

(Dollars in Thousands)

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

Pass

 

$

5,035

 

 

$

10,186

 

 

$

23,483

 

 

$

43

 

 

$

—

 

 

$

137

 

 

$

38,884

 

 

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Substandard

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,178

 

 

$

—

 

 

$

—

 

 

 

2,178

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

—

 

 

 

Subtotal

 

$

5,035

 

 

$

10,186

 

 

$

23,483

 

 

$

2,221

 

 

$

—

 

 

$

137

 

 

$

41,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured by multi-family residential properties

 

Pass

 

$

18,555

 

 

$

1,232

 

 

$

198

 

 

$

17,183

 

 

$

50,958

 

 

$

31,236

 

 

$

119,362

 

 

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

18,555

 

 

$

1,232

 

 

$

198

 

 

$

17,183

 

 

$

50,958

 

 

$

31,236

 

 

$

119,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured by non-residential commercial real estate

 

Pass

 

$

3,594

 

 

$

4,488

 

 

$

24,446

 

 

$

16,045

 

 

$

10,020

 

 

$

118,457

 

 

$

177,050

 

 

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

320

 

 

 

320

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

530

 

 

 

2,825

 

 

 

755

 

 

 

4,110

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

3,594

 

 

$

4,488

 

 

$

24,446

 

 

$

16,575

 

 

$

12,845

 

 

$

119,532

 

 

$

181,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

48

 

 

$

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans and leases

 

Pass

 

$

4,393

 

 

$

13,650

 

 

$

11,962

 

 

$

3,883

 

 

$

1,647

 

 

$

10,763

 

 

$

46,298

 

 

 

Special Mention

 

 

—

 

 

 

403

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

403

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

41

 

 

 

92

 

 

 

133

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

4,393

 

 

$

14,053

 

 

$

11,962

 

 

$

3,883

 

 

$

1,688

 

 

$

10,855

 

 

$

46,834

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total commercial

 

Pass

 

$

31,577

 

 

$

29,556

 

 

$

60,089

 

 

$

37,154

 

 

$

62,625

 

 

$

160,593

 

 

$

381,594

 

 

 

Special Mention

 

 

—

 

 

 

403

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

320

 

 

 

723

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,708

 

 

 

2,866

 

 

 

847

 

 

 

6,421

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

$

31,577

 

 

$

29,959

 

 

$

60,089

 

 

$

39,862

 

 

$

65,491

 

 

$

161,760

 

 

$

388,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

48

 

 

$

48

 

 

 

 

 

 

 

June 30, 2026

 

 

 

 

 

Loans at Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Total

 

 

 

 

 

(Dollars in Thousands)

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured by 1-4 family residential properties

 

Performing

 

$

2,871

 

 

$

6,293

 

 

$

3,375

 

 

$

2,682

 

 

$

15,154

 

 

$

32,181

 

 

$

62,557

 

 

 

Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

536

 

 

 

536

 

 

 

Subtotal

 

$

2,871

 

 

$

6,293

 

 

$

3,375

 

 

$

2,682

 

 

$

15,154

 

 

$

32,717

 

 

$

63,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

Performing

 

$

1,137

 

 

$

2,026

 

 

$

712

 

 

$

243

 

 

$

75

 

 

$

186

 

 

$

4,379

 

 

 

Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

1,137

 

 

$

2,026

 

 

$

712

 

 

$

243

 

 

$

75

 

 

$

186

 

 

$

4,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

2

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1

 

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indirect

 

Performing

 

$

67,751

 

 

$

120,284

 

 

$

39,258

 

 

$

49,775

 

 

$

53,417

 

 

$

73,711

 

 

$

404,196

 

 

 

Non-performing

 

 

—

 

 

 

40

 

 

 

34

 

 

 

—

 

 

 

8

 

 

 

147

 

 

 

229

 

 

 

Subtotal

 

$

67,751

 

 

$

120,324

 

 

$

39,292

 

 

$

49,775

 

 

$

53,425

 

 

$

73,858

 

 

$

404,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

52

 

 

$

71

 

 

$

137

 

 

$

179

 

 

$

206

 

 

$

690

 

 

$

1,335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total consumer

 

Performing

 

$

71,759

 

 

$

128,603

 

 

$

43,345

 

 

$

52,700

 

 

$

68,646

 

 

$

106,078

 

 

$

471,132

 

 

 

Non-performing

 

 

—

 

 

 

40

 

 

 

34

 

 

 

—

 

 

 

8

 

 

 

683

 

 

 

765

 

 

 

 

 

$

71,759

 

 

$

128,643

 

 

$

43,379

 

 

$

52,700

 

 

$

68,654

 

 

$

106,760

 

 

$

471,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

54

 

 

$

71

 

 

$

137

 

 

$

179

 

 

$

206

 

 

$

691

 

 

$

1,338

 

 

The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of December 31, 2025, as well as gross charge-offs for the year ended December 31, 2025.

 

 

 

 

 

December 31, 2025

 

 

 

 

 

Loans at Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Total

 

 

 

 

 

(Dollars in Thousands)

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

Pass

 

$

3,255

 

 

$

14,459

 

 

$

5,678

 

 

$

—

 

 

$

4

 

 

$

145

 

 

$

23,541

 

 

 

Special Mention

 

 

—

 

 

 

6,821

 

 

 

—

 

 

 

—

 

 

 

18

 

 

 

—

 

 

 

6,839

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

2,238

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,238

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

3,255

 

 

$

21,280

 

 

$

7,916

 

 

$

—

 

 

$

22

 

 

$

145

 

 

$

32,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured by multi-family residential properties

 

Pass

 

$

1,243

 

 

$

200

 

 

$

10,351

 

 

$

68,835

 

 

$

13,600

 

 

$

23,540

 

 

$

117,769

 

 

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

1,243

 

 

$

200

 

 

$

10,351

 

 

$

68,835

 

 

$

13,600

 

 

$

23,540

 

 

$

117,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured by non-residential commercial real estate

 

Pass

 

$

4,495

 

 

$

24,887

 

 

$

16,179

 

 

$

21,485

 

 

$

34,071

 

 

$

95,071

 

 

$

196,188

 

 

 

Special Mention

 

 

—

 

 

 

—

 

 

 

536

 

 

 

2,839

 

 

 

—

 

 

 

324

 

 

 

3,699

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

449

 

 

 

363

 

 

 

812

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

4,495

 

 

$

24,887

 

 

$

16,715

 

 

$

24,324

 

 

$

34,520

 

 

$

95,758

 

 

$

200,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans

 

Pass

 

$

14,634

 

 

$

13,960

 

 

$

4,396

 

 

$

2,403

 

 

$

3,510

 

 

$

9,310

 

 

$

48,213

 

 

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17

 

 

 

36

 

 

 

—

 

 

 

53

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

94

 

 

 

94

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

14,634

 

 

$

13,960

 

 

$

4,396

 

 

$

2,420

 

 

$

3,546

 

 

$

9,404

 

 

$

48,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

2,215

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total commercial

 

Pass

 

$

23,627

 

 

$

53,506

 

 

$

36,604

 

 

$

92,723

 

 

$

51,185

 

 

$

128,066

 

 

$

385,711

 

 

 

Special Mention

 

 

—

 

 

 

6,821

 

 

 

536

 

 

 

2,856

 

 

 

54

 

 

 

324

 

 

 

10,591

 

 

 

Substandard

 

 

—

 

 

 

—

 

 

 

2,238

 

 

 

—

 

 

 

449

 

 

 

457

 

 

 

3,144

 

 

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

$

23,627

 

 

$

60,327

 

 

$

39,378

 

 

$

95,579

 

 

$

51,688

 

 

$

128,847

 

 

$

399,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

2,215

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,215

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

Loans at Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Total

 

 

 

 

 

(Dollars in Thousands)

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured by 1-4 family residential properties

 

Performing

 

$

6,018

 

 

$

4,584

 

 

$

2,654

 

 

$

17,339

 

 

$

13,902

 

 

$

21,941

 

 

$

66,438

 

 

 

Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

558

 

 

 

558

 

 

 

Subtotal

 

$

6,018

 

 

$

4,584

 

 

$

2,654

 

 

$

17,339

 

 

$

13,902

 

 

$

22,499

 

 

$

66,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct consumer

 

Performing

 

$

2,902

 

 

$

1,073

 

 

$

426

 

 

$

142

 

 

$

173

 

 

$

128

 

 

$

4,844

 

 

 

Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Subtotal

 

$

2,902

 

 

$

1,073

 

 

$

426

 

 

$

142

 

 

$

173

 

 

$

128

 

 

$

4,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

—

 

 

$

4

 

 

$

—

 

 

$

5

 

 

$

—

 

 

$

—

 

 

$

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indirect consumer

 

Performing

 

$

134,498

 

 

$

45,268

 

 

$

57,633

 

 

$

60,092

 

 

$

44,463

 

 

$

39,347

 

 

$

381,301

 

 

 

Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

43

 

 

 

85

 

 

 

303

 

 

 

431

 

 

 

Subtotal

 

$

134,498

 

 

$

45,268

 

 

$

57,633

 

 

$

60,135

 

 

$

44,548

 

 

$

39,650

 

 

$

381,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

20

 

 

$

151

 

 

$

278

 

 

$

512

 

 

$

353

 

 

$

578

 

 

$

1,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Total consumer:

 

Performing

 

$

143,418

 

 

$

50,925

 

 

$

60,713

 

 

$

77,573

 

 

$

58,538

 

 

$

61,416

 

 

$

452,583

 

 

 

Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

43

 

 

 

85

 

 

 

861

 

 

 

989

 

 

 

 

 

$

143,418

 

 

$

50,925

 

 

$

60,713

 

 

$

77,616

 

 

$

58,623

 

 

$

62,277

 

 

$

453,572

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current period gross charge-offs

 

$

20

 

 

$

155

 

 

$

278

 

 

$

517

 

 

$

353

 

 

$

578

 

 

$

1,901

 

 
Aging Analysis of Past Due Loans

The following table provides an aging analysis of past due loans by class as of June 30, 2026:

 

 

 

As of June 30, 2026

 

 

 

30-59
Days
Past
Due

 

 

60-89
Days
Past
Due

 

 

90
Days
Or
Greater

 

 

Total
Past
Due

 

 

Current

 

 

Total
Loans

 

 

Recorded
Investment
> 90 Days
And
Accruing

 

 

 

(Dollars in Thousands)

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development
   and other land loans

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

41,062

 

 

$

41,062

 

 

$

—

 

Secured by 1-4 family residential
   properties

 

 

99

 

 

 

—

 

 

 

372

 

 

 

471

 

 

 

62,622

 

 

 

63,093

 

 

 

—

 

Secured by multi-family residential
   properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

119,362

 

 

 

119,362

 

 

 

—

 

Secured by non-residential commercial real estate

 

 

—

 

 

 

—

 

 

 

315

 

 

 

315

 

 

 

181,165

 

 

 

181,480

 

 

 

—

 

Commercial and industrial loans

 

 

17

 

 

 

32

 

 

 

17

 

 

 

66

 

 

 

46,768

 

 

 

46,834

 

 

 

—

 

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,379

 

 

 

4,379

 

 

 

—

 

Indirect

 

 

909

 

 

 

333

 

 

 

228

 

 

 

1,470

 

 

 

402,955

 

 

 

404,425

 

 

 

—

 

Total

 

$

1,025

 

 

$

365

 

 

$

932

 

 

$

2,322

 

 

$

858,313

 

 

$

860,635

 

 

$

—

 

As a percentage of total loans

 

 

0.12

%

 

 

0.04

%

 

 

0.11

%

 

 

0.27

%

 

 

99.73

%

 

 

100.00

%

 

 

 

 

 

 

The following table provides an aging analysis of past due loans by class as of December 31, 2025:

 

 

 

As of December 31, 2025

 

 

 

30-59
Days
Past
Due

 

 

60-89
Days
Past
Due

 

 

90
Days
Or
Greater

 

 

Total
Past
Due

 

 

Current

 

 

Total
Loans

 

 

Recorded
Investment
> 90 Days
And
Accruing

 

 

 

(Dollars in Thousands)

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development
   and other land loans

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

32,618

 

 

$

32,618

 

 

$

—

 

Secured by 1-4 family residential
   properties

 

 

41

 

 

 

—

 

 

 

374

 

 

 

415

 

 

 

66,581

 

 

 

66,996

 

 

 

—

 

Secured by multi-family residential
   properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

117,769

 

 

 

117,769

 

 

 

—

 

Secured by non-residential commercial real estate

 

 

—

 

 

 

—

 

 

 

363

 

 

 

363

 

 

 

200,336

 

 

 

200,699

 

 

 

—

 

Commercial and industrial loans

 

 

44

 

 

 

—

 

 

 

—

 

 

 

44

 

 

 

48,316

 

 

 

48,360

 

 

 

—

 

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

 

 

4,842

 

 

 

4,844

 

 

 

—

 

Indirect

 

 

1,244

 

 

 

294

 

 

 

412

 

 

 

1,950

 

 

 

379,782

 

 

 

381,732

 

 

 

—

 

Total

 

$

1,329

 

 

$

296

 

 

$

1,149

 

 

$

2,774

 

 

$

850,244

 

 

$

853,018

 

 

$

—

 

As a percentage of total loans

 

 

0.16

%

 

 

0.03

%

 

 

0.14

%

 

 

0.33

%

 

 

99.67

%

 

 

100.00

%

 

 

 
Non-accruing Loans

The tables below present the amortized cost of loans on nonaccrual status and loans past due 90 days or more and still accruing interest as of June 30, 2026 and December 31, 2025. Also presented is the balance of loans on nonaccrual status at June 30, 2026 and December 31, 2025 for which there was no related ACL recorded.

 

 

 

Loans on Non-Accrual Status

 

 

 

June 30, 2026

 

 

 

(Dollars in Thousands)

 

 

 

Total nonaccrual
loans

 

Nonaccrual loans with no allowance for credit losses

 

Loans past due 90 days or more and still accruing

 

Loans secured by real estate:

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

—

 

$

—

 

$

—

 

Secured by 1-4 family residential properties

 

 

671

 

 

370

 

 

—

 

Secured by multi-family residential properties

 

 

—

 

 

—

 

 

—

 

Secured by non-residential commercial real estate

 

 

315

 

 

—

 

 

—

 

Commercial and industrial loans

 

 

79

 

 

—

 

 

—

 

Consumer loans:

 

 

 

 

 

 

—

 

Direct

 

 

—

 

 

—

 

 

—

 

Indirect

 

 

229

 

 

—

 

 

—

 

Total loans

 

$

1,294

 

$

370

 

$

—

 

 

 

 

 

 

Loans on Non-Accrual Status

 

 

 

December 31, 2025

 

 

 

(Dollars in Thousands)

 

 

 

Total nonaccrual
loans

 

Nonaccrual loans with no allowance for credit losses

 

Loans past due 90 days or more and still accruing

 

Loans secured by real estate:

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

—

 

$

—

 

$

—

 

Secured by 1-4 family residential properties

 

 

558

 

 

370

 

 

—

 

Secured by multi-family residential properties

 

 

—

 

 

—

 

 

—

 

Secured by non-residential commercial real estate

 

 

363

 

 

—

 

 

—

 

Commercial and industrial loans

 

 

—

 

 

—

 

 

—

 

Consumer loans:

 

 

 

 

 

 

 

Direct

 

 

21

 

 

—

 

 

—

 

Indirect

 

 

431

 

 

—

 

 

—

 

Total loans

 

$

1,373

 

$

370

 

$

—

 
Schedule of Amortized Cost Basis of Collateral Dependent Loans

The following tables present the amortized cost basis of collateral dependent loans as of June 30, 2026 and December 31, 2025, which loans are individually evaluated to determine credit losses:

 

 

 

June 30, 2026

 

 

 

Real Estate

 

 

Other

 

 

Total

 

 

 

(Dollars in Thousands)

 

Loans secured by real estate

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

2,178

 

 

$

—

 

 

$

2,178

 

Secured by 1-4 family residential properties

 

 

380

 

 

 

—

 

 

 

380

 

Secured by multi-family residential properties

 

 

—

 

 

 

—

 

 

 

—

 

Secured by non-residential commercial real estate

 

 

3,676

 

 

 

—

 

 

 

3,676

 

Commercial and industrial

 

 

—

 

 

 

35

 

 

 

35

 

Direct consumer

 

 

—

 

 

 

—

 

 

 

—

 

Total loans individually evaluated

 

$

6,234

 

 

$

35

 

 

$

6,269

 

 

 

 

December 31, 2025

 

 

 

Real Estate

 

 

Other

 

 

Total

 

 

 

(Dollars in Thousands)

 

Loans secured by real estate

 

 

 

 

 

 

 

 

 

Construction, land development and other land loans

 

$

2,238

 

 

$

—

 

 

$

2,238

 

Secured by 1-4 family residential properties

 

 

385

 

 

 

—

 

 

 

385

 

Secured by multi-family residential properties

 

 

—

 

 

 

—

 

 

 

—

 

Secured by non-residential commercial real estate

 

 

363

 

 

 

—

 

 

 

363

 

Commercial and industrial

 

 

—

 

 

 

38

 

 

 

38

 

Direct consumer

 

 

—

 

 

 

—

 

 

 

—

 

Total loans individually evaluated

 

$

2,986

 

 

$

38

 

 

$

3,024