Note 5 - Credit Quality

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Financing Receivables [Text Block]

Note 5. Credit Quality

The Company uses a risk grading matrix to assign a risk grade to each loan in its portfolio. Loan risk ratings may be upgraded or downgraded to reflect current information identified during the loan review process. The general characteristics of each risk grade are as follows:

●

Pass -- This grade is assigned to loans with acceptable credit quality and risk. The Company further segments this grade based on borrower characteristics that include capital strength, earnings stability, liquidity, leverage, and industry conditions.

●

Special Mention -- This grade is assigned to loans that require an above average degree of supervision and attention. These loans have the characteristics of an asset with acceptable credit quality and risk; however, adverse economic or financial conditions exist that create potential weaknesses deserving of management’s close attention. If potential weaknesses are not corrected, the prospect of repayment may worsen.

●

Substandard -- This grade is assigned to loans that have well defined weaknesses that may make payment default, or principal exposure, possible. These loans will likely be dependent on collateral liquidation, secondary repayment sources, or events outside the normal course of business to meet repayment terms.

●

Doubtful -- This grade is assigned to loans that have the weaknesses inherent in substandard loans; however, the weaknesses are so severe that collection or liquidation in full is unlikely based on current facts, conditions, and values. Due to certain specific pending factors, the amount of loss cannot yet be determined.

●

Loss -- This grade is assigned to loans that will be charged off or charged down when payments, including the timing and value of payments, are uncertain. This risk grade does not imply that the asset has no recovery or salvage value but simply means that it is not practical or desirable to defer writing off, either all or a portion of, the loan balance even though partial recovery may be realized in the future.

The following table presents the recorded investment of the loan portfolio, by loan class and credit quality, as of the dates indicated:

		*June 30, 2026*
						*Special*
(Amounts in thousands)		*Pass*				*Mention*				*Substandard*				*Doubtful*				*Loss*				*Total*
Commercial loans
Construction, development, and other land		$	66,773			$	114			$	201			$	-			$	-			$	67,088
Commercial and industrial			270,940				3,893				5,094				-				-				279,927
Multi-family residential			189,988				6				696				-				-				190,690
Single family non-owner occupied			185,390				1,340				7,220				-				-				193,950
Non-farm, non-residential			873,312				12,459				7,860				-				-				893,631
Agricultural			11,268				2,770				414				-				-				14,452
Farmland			9,577				1,307				958				-				-				11,842
Consumer real estate loans
Home equity lines			81,584				269				1,886				-				-				83,739
Single family owner occupied			651,546				1,339				15,992				-				-				668,877
Owner occupied construction			5,169				-				-				-				-				5,169
Consumer and other loans
Consumer loans			47,507				-				764				-				-				48,271
Other			2,110				-				-				-				-				2,110
Total loans		$	2,395,164			$	23,497			$	41,085			$	-			$	-			$	2,459,746

		*December 31, 2025*
						*Special*
(Amounts in thousands)		*Pass*				*Mention*				*Substandard*				*Doubtful*				*Loss*				*Total*

Commercial loans
Construction, development, and other land		$	63,434			$	119			$	348			$	-			$	-			$	63,901
Commercial and industrial			239,949				672				3,362				-				-				243,983
Multi-family residential			191,337				25				124				-				-				191,486
Single family non-owner occupied			165,489				1,250				5,179				-				-				171,918
Non-farm, non-residential			821,442				11,326				5,690				-				-				838,458
Agricultural			10,377				2,909				178				-				-				13,464
Farmland			9,595				224				906				-				-				10,725
Consumer real estate loans
Home equity lines			79,937				415				2,412				-				-				82,764
Single family owner occupied			613,279				1,364				17,705				-				-				632,348
Owner occupied construction			5,605				-				-				-				-				5,605
Consumer and other loans
Consumer loans			57,504				-				949				-				-				58,453
Other			1,650				-				-				-				-				1,650
Total loans		$	2,259,598			$	18,304			$	36,853				-				-			$	2,314,755

The following tables present the amortized cost basis and current period gross write-offs of the loan portfolio, by year of origination, loan class, and credit quality, as of the date indicated:

(Amounts in thousands)		*Term Loans Amortized Cost Basis by Origination Year*
Balance at June 30, 2026		*2026*				*2025*				*2024*				*2023*				*2022*				*Prior*				*Revolving*				*Total*
Construction, development and other land
Pass		$	15,394			$	16,148			$	6,842			$	4,556			$	7,341			$	16,272			$	220			$	66,773
Special mention			-				-				-				-				-				114				-				114
Substandard			-				-				160				23				-				18				-				201
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total construction, development, and other land		$	15,394			$	16,148			$	7,002			$	4,579			$	7,341			$	16,404			$	220			$	67,088
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	1			$	-			$	1
Commercial and industrial
Pass		$	31,260			$	65,973			$	46,930			$	23,041			$	39,538			$	20,783			$	43,415			$	270,940
Special mention			68				183				2,832				322				233				134				121				3,893
Substandard			46				474				949				366				876				1,263				1,120				5,094
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total commercial and industrial		$	31,374			$	66,630			$	50,711			$	23,729			$	40,647			$	22,180			$	44,656			$	279,927
Current period gross write-offs		$	47			$	251			$	250			$	35			$	45			$	6			$	-			$	634
Multi-family residential
Pass		$	14,792			$	16,361			$	2,926			$	7,559			$	73,270			$	71,716			$	3,364			$	189,988
Special mention			-				-				-				-				-				6				-				6
Substandard			-				-				285				-				229				182				-				696
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total multi-family residential		$	14,792			$	16,361			$	3,211			$	7,559			$	73,499			$	71,904			$	3,364			$	190,690
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Non-farm, non-residential
Pass		$	62,415			$	71,266			$	38,512			$	66,435			$	223,736			$	394,155			$	16,793			$	873,312
Special mention			-				-				1,397				97				2,956				7,941				68				12,459
Substandard			-				280				607				19				384				6,483				87				7,860
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total non-farm, non-residential		$	62,415			$	71,546			$	40,516			$	66,551			$	227,076			$	408,579			$	16,948			$	893,631
Current period gross write-offs		$	-			$	-			$	39			$	-			$	-			$	25			$	-			$	64
Agricultural
Pass		$	3,187			$	2,734			$	195			$	871			$	720			$	2,018			$	1,543			$	11,268
Special mention			-				-				-				-				223				2,547				-				2,770
Substandard			-				-				-				192				206				16				-				414
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total agricultural		$	3,187			$	2,734			$	195			$	1,063			$	1,149			$	4,581			$	1,543			$	14,452
Current period gross write-offs		$	-			$	-			$	-			$	1			$	14			$	3			$	-			$	18
Farmland
Pass		$	319			$	877			$	1,073			$	912			$	719			$	4,615			$	1,062			$	9,577
Special mention			-				-				-				-				-				1,307				-				1,307
Substandard			-				-				-				-				-				958				-				958
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total farmland		$	319			$	877			$	1,073			$	912			$	719			$	6,880			$	1,062			$	11,842
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

(Amounts in thousands)		*Term Loans Amortized Cost Basis by Origination Year*
Balance at June 30, 2026		*2026*				*2025*				*2024*				*2023*				*2022*				*Prior*				*Revolving*				*Total*
Home equity lines
Pass		$	22			$	36			$	282			$	315			$	1,138			$	3,785			$	76,006			$	81,584
Special mention			-				-				-				-				-				76				193				269
Substandard			-				-				-				33				12				1,521				320				1,886
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total home equity lines		$	22			$	36			$	282			$	348			$	1,150			$	5,382			$	76,519			$	83,739
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	16			$	16
Single family Mortgage
Pass		$	48,318			$	62,030			$	23,718			$	45,747			$	142,315			$	512,867			$	1,941			$	836,936
Special mention			-				-				-				-				197				2,482				-				2,679
Substandard			31				60				719				1,375				3,126				17,901				-				23,212
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total single family owner and non-owner occupied		$	48,349			$	62,090			$	24,437			$	47,122			$	145,638			$	533,250			$	1,941			$	862,827
Current period gross write-offs		$	-			$	-			$	-			$	-			$	88			$	160			$	-			$	248
Owner occupied construction
Pass		$	-			$	3,410			$	1,326			$	24			$	47			$	362			$	-			$	5,169
Special mention			-				-				-				-				-				-				-				-
Substandard			-				-				-				-				-				-				-				-
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total owner occupied construction		$	-			$	3,410			$	1,326			$	24			$	47			$	362			$	-			$	5,169
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Consumer loans
Pass		$	3,057			$	10,470			$	8,192			$	8,307			$	8,748			$	2,757			$	8,086			$	49,617
Special mention			-				-				-				-				-				-				-				-
Substandard			-				31				148				124				115				305				41				764
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total consumer loans		$	3,057			$	10,501			$	8,340			$	8,431			$	8,863			$	3,062			$	8,127			$	50,381
Current period gross write-offs		$	1,034			$	120			$	267			$	229			$	316			$	125			$	111			$	2,202

(Amounts in thousands)		*Term Loans Amortized Cost Basis by Origination Year*
Balance at June 30, 2026		*2026*				*2025*				*2024*				*2023*				*2022*				*Prior*				*Revolving*				*Total*
Total loans
Pass		$	178,764			$	249,305			$	129,996			$	157,767			$	497,572			$	1,029,330			$	152,430			$	2,395,164
Special mention			68				183				4,229				419				3,609				14,607				382				23,497
Substandard			77				845				2,868				2,132				4,948				28,647				1,568				41,085
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total loans		$	178,909			$	250,333			$	137,093			$	160,318			$	506,129			$	1,072,584			$	154,380			$	2,459,746
Current period gross write-offs		$	1,081			$	371			$	556			$	265			$	463			$	320			$	127			$	3,183

(Amounts in thousands)		*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2025		*2025*				*2024*				*2023*				*2022*				*2021*				*Prior*				*Revolving*				*Total*
Construction, development
and other land
Pass		$	9,413			$	8,406			$	2,349			$	27,258			$	11,630			$	4,302			$	76			$	63,434
Special Mention			-				-				-				-				-				119				-				119
Substandard			-				162				110				-				-				76				-				348
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total construction, development, and other land		$	9,413			$	8,568			$	2,459			$	27,258			$	11,630			$	4,497			$	76			$	63,901
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Commercial and industrial
Pass		$	67,302			$	51,979			$	23,184			$	38,494			$	3,688			$	13,398			$	41,904			$	239,949
Special Mention			138				75				59				166				-				75				159				672
Substandard			144				629				314				892				518				689				176				3,362
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total commercial and industrial		$	67,584			$	52,683			$	23,557			$	39,552			$	4,206			$	14,162			$	42,239			$	243,983
Current period gross write-offs		$	20			$	82			$	175			$	228			$	115			$	559							$	1,179
Multi-family residential
Pass		$	11,385			$	673			$	9,176			$	72,897			$	39,194			$	56,176			$	1,836			$	191,337
Special Mention			-				-				-				-				-				25				-				25
Substandard			-				-				-				93				-				31				-				124
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total multi-family residential		$	11,385			$	673			$	9,176			$	72,990			$	39,194			$	56,232			$	1,836			$	191,486
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Non-farm, non-residential
Pass		$	70,136			$	36,383			$	68,826			$	208,994			$	122,622			$	301,436			$	13,045			$	821,442
Special Mention			-				434				-				2,667				3,669				4,489				67				11,326
Substandard			286				596				21				396				1,617				2,774				-				5,690
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total non-farm, non-residential		$	70,422			$	37,413			$	68,847			$	212,057			$	127,908			$	308,699			$	13,112			$	838,458
Current period gross write-offs		$	-			$	-			$	-			$	56			$	-			$	24			$	-			$	80
Agricultural
Pass		$	3,227			$	439			$	1,959			$	1,360			$	692			$	1,907			$	793			$	10,377
Special Mention			-				-				-				234				135				2,540				-				2,909
Substandard			-				-				84				74				18				2				-				178
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total agricultural		$	3,227			$	439			$	2,043			$	1,668			$	845			$	4,449			$	793			$	13,464
Current period gross write-offs		$	-			$	-			$	117			$	45			$	-			$	-			$	-			$	162
Farmland
Pass		$	902			$	829			$	896			$	699			$	1,151			$	3,955			$	1,163			$	9,595
Special Mention			-				-				-				-				94				130				-				224
Substandard			-				-				-				-				-				906				-				906
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total farmland		$	902			$	829			$	896			$	699			$	1,245			$	4,991			$	1,163			$	10,725
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-

(Amounts in thousands)		*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2025		*2025*				*2024*				*2023*				*2022*				*2021*				*Prior*				*Revolving*				*Total*
Home equity lines
Pass		$	489			$	231			$	299			$	1,053			$	74			$	3,459			$	74,332			$	79,937
Special Mention			-				-				-				-				-				229				186				415
Substandard			-				-				35				13				49				1,646				669				2,412
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total home equity lines		$	489			$	231			$	334			$	1,066			$	123			$	5,334			$	75,187			$	82,764
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	42			$	42
Single family Mortgage
Pass		$	53,580			$	16,131			$	41,767			$	140,463			$	185,508			$	339,851			$	1,468			$	778,768
Special Mention			-				-				-				-				377				2,237				-				2,614
Substandard			63				7				811				2,598				1,968				17,437				-				22,884
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total single family owner and non-owner occupied		$	53,643			$	16,138			$	42,578			$	143,061			$	187,853			$	359,525			$	1,468			$	804,266
Current period gross write-offs		$	-			$	-			$	53			$	-			$	56			$	49			$	-			$	158
Owner occupied construction
Pass		$	1,989			$	3,149			$	26			$	49			$	147			$	245			$	-			$	5,605
Special Mention			-				-				-				-				-				-				-				-
Substandard			-				-				-				-				-				-				-				-
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total owner occupied construction		$	1,989			$	3,149			$	26			$	49			$	147			$	245			$	-			$	5,605
Current period gross write-offs		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	-
Consumer loans
Pass		$	13,061			$	10,349			$	10,916			$	12,025			$	4,171			$	1,061			$	7,571			$	59,154
Special Mention			-				-				-				-				-				-				-				-
Substandard			19				108				183				199				129				280				31				949
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total consumer loans		$	13,080			$	10,457			$	11,099			$	12,224			$	4,300			$	1,341			$	7,602			$	60,103
Current period gross write-offs		$	2,018			$	596			$	1,003			$	1,101			$	407			$	95			$	209			$	5,429

(Amounts 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		$	231,484			$	128,569			$	159,398			$	503,292			$	368,877			$	725,790			$	142,188			$	2,259,598
Special mention			138				509				59				3,067				4,275				9,844				412				18,304
Substandard			512				1,502				1,558				4,265				4,299				23,841				876				36,853
Doubtful			-				-				-				-				-				-				-				-
Loss			-				-				-				-				-				-				-				-
Total loans		$	232,134			$	130,580			$	161,015			$	510,624			$	377,451			$	759,475			$	143,476			$	2,314,755
Current period gross write-offs		$	2,038			$	678			$	1,348			$	1,430			$	578			$	727			$	251			$	7,050

The Company generally places a loan on nonaccrual status when it is 90 days or more past due. The following table presents nonaccrual loans, by loan class, as of the dates indicated:

		*June 30, 2026*												*December 31, 2025*
(Amounts in thousands)		*No Allowance*				*With an Allowance*				*Total*				*No Allowance*				*With an Allowance*				*Total*
Commercial loans
Construction, development, and other land		$	26			$	-			$	26			$	133			$	-			$	133
Commercial and industrial			2,413				-				2,413				1,318				-				1,318
Multi-family residential			627				-				627				124				-				124
Single family non-owner occupied			2,837				-				2,837				1,003				-				1,003
Non-farm, non-residential			1,604				-				1,604				1,273				-				1,273
Agricultural			78				-				78				84				-				84
Farmland			206				-				206				220				-				220
Consumer real estate loans
Home equity lines			972				-				972				901				-				901
Single family owner occupied			7,589				-				7,589				8,256				-				8,256
Owner occupied construction			-				-				-				-				-				-
Consumer and other loans
Consumer loans			464				-				464				629				-				629
Total nonaccrual loans		$	16,816			$	-			$	16,816			$	13,941			$	-			$	13,941

Loans are considered past due when either principal or interest payments become contractually delinquent by 30 days or more. The Company’s policy is to discontinue the accrual of interest, if warranted, on loans based on the payment status, evaluation of the related collateral, and the financial strength of the borrower. Loans that are 90 days or more past due are placed on nonaccrual status. Management may elect to continue the accrual of interest when the loan is well secured and in process of collection. When interest accruals are discontinued, interest accrued and not collected in the current year is reversed from income, and interest accrued and not collected from prior years is charged to the allowance for credit losses. Nonaccrual loans may be returned to accrual status when all principal and interest amounts contractually due, including past due payments, are brought current; the ability of the borrower to repay the obligation is reasonably assured; and there is generally a period of at least six months of repayment performance by the borrower in accordance with the contractual terms. There was no material nonaccrual loan interest recognized in income during the second quarter of 2026 or 2025.

The following tables present the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 days or more past due are included in the applicable delinquency category:

		*June 30, 2026*
																										*Amortized Cost of*
		*30 - 59 Days*				*60 - 89 Days*				*90+ Days*				*Total*				*Current*				*Total*				*> 90 Days Accruing*
(Amounts in thousands)		*Past Due*				*Past Due*				*Past Due*				*Past Due*				*Loans*				*Loans*				*No Allowance*

Commercial loans
Construction, development, and other land		$	520			$	-			$	24			$	544			$	66,544			$	67,088			$	-
Commercial and industrial			536				877				1,336				2,749				277,178				279,927				-
Multi-family residential			179				-				425				604				190,086				190,690				-
Single family non-owner occupied			1,014				563				1,606				3,183				190,767				193,950				-
Non-farm, non-residential			1,590				427				610				2,627				891,004				893,631				-
Agricultural			450				6				50				506				13,946				14,452				-
Farmland			114				-				98				212				11,630				11,842				-
Consumer real estate loans
Home equity lines			625				502				334				1,461				82,278				83,739				-
Single family owner occupied			4,460				2,046				1,850				8,356				660,521				668,877				-
Owner occupied construction			-				-				-				-				5,169				5,169				-
Consumer and other loans
Consumer loans			1,406				308				254				1,968				46,303				48,271				-
Other			-				-				-				-				2,110				2,110				-
Total loans		$	10,894			$	4,729			$	6,587			$	22,210			$	2,437,536			$	2,459,746			$	-

		*December 31, 2025*
																										*Amortized Cost of*
		*30 - 59 Days*				*60 - 89 Days*				*90+ Days*				*Total*				*Current*				*Total*				*> 90 Days Accruing*
(Amounts in thousands)		*Past Due*				*Past Due*				*Past Due*				*Past Due*				*Loans*				*Loans*				*No Allowance*

Commercial loans
Construction, development, and other land		$	207			$	-			$	130			$	337			$	63,564			$	63,901				-
Commercial and industrial			1,423				297				1,271				2,991				240,992				243,983				-
Multi-family residential			375.00				-				-				375.00				191,111				191,486				-
Single family non-owner occupied			1,691				292				491				2,474				169,444				171,918				-
Non-farm, non-residential			2,336				-				658				2,994				835,464				838,458				-
Agricultural			73				3				81				157				13,307				13,464				-
Farmland			16				-				-				16				10,709				10,725				-
Consumer real estate loans
Home equity lines			909				397				212				1,518				81,246				82,764				-
Single family owner occupied			5,166				1,518				2,338				9,022				623,326				632,348				-
Owner occupied construction			-				-				-				-				5,605				5,605				-
Consumer and other loans
Consumer loans			1,955				681				305				2,941				55,512				58,453				-
Other			-				-				-				-				1,650				1,650				-
Total loans		$	14,151			$	3,188			$	5,486			$	22,825			$	2,291,930			$	2,314,755				-

ASC 326 prescribes that when an entity determines foreclosure is probable, the expected credit loss can be measured based on the fair value of the collateral. As a practical expedient, an entity may use the fair value as of the reporting date when recording the net carrying amount of the asset. For the collateral dependent asset ("CDA") a credit loss expense is recorded for loan amounts in excess of fair value of the collateral. The Company had no collateral-dependent loans as of June 30, 2026, or December 31, 2025.

The Company may make concessions in interest rates, loan terms and/or amortization terms when restructuring loans for borrowers experiencing financial difficulty. Presented below are the amortized cost basis and percentage of loan class for loan modifications made to borrowers experiencing financial difficulty by loan class, concession type, and financial effect as of the dates indicated:

		*Payment Delays*
		*Amortized Cost Basis*				*% of Total Class of*
		*June 30, 2026*				*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Non-Farm, Non-Residential Property		$	736				0.08	%	Interest only payments; deferred payments to maturity.
Single Family Owner Occupied			618				0.09	%	Deferred principal to loan maturity.
Agricultural			206				1.43	%	Deferred 6 months of principal to loan maturity.
Commercial & Industrial			26				0.01	%	Deferred 6 months of principal to loan maturity.
Single Family Non-Owner Occupied			14				0.01	%	Deferred 6 months of principal to loan maturity.
Total		$	1,600

		*Term Extensions*
		*Amortized Cost Basis*				*% of Total Class of*
		*June 30, 2026*				*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Commercial & Industrial		$	287				0.10	%	Delayed repayment of P&I.
Single Family Owner Occupied			67				0.01	%	Extended term by 10.5 years.
Consumer			26				0.05	%	Extended terms and deferred payments.
Agricultural			16				0.11	%	Extended maturity by 8 months.
Total		$	396

		*Term Extension and Rate Reduction*
		*Amortized Cost Basis*				*% of Total Class of*
		*June 30, 2026*				*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Single Family Owner Occupied		$	973				0.15	%	Reduced interest income and extended time to recover principal.
Commercial & Industrial			315				0.11	%	Lowered rate by 2%; extended maturity by 26 months.
Non-Farm, Non-Residential Property			57				0.01	%	Reduced rate to 5%; extended term by approx. 5 years.
Consumer			8				0.02	%	Extended term and reduced interest rate.
Total		$	1,353

		*Interest Rate Reduction*
		*Amortized Cost Basis*				*% of Total Class of*
		*June 30, 2026*				*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Single Family Owner Occupied		$	86				0.01	%	Reduced interest rate from 3.15% to 1.95%.
Total		$	86

		*Payment Delays*
		*Amortized Cost Basis*				*% of Total Class of*
		*December 31, 2025*				*Financing Receivable*					*Financial Effect*

(Amounts in thousands)
Non-Farm, Non-Residential Property		$	594				0.07	%			Interest only payments; deferred payments to maturity.
Single Family Owner Occupied			647				0.10	%			Deferred Principal to loan maturity.
Single Family Non-Owner Occupied			20				0.01	%			Deferred 6 months of principal to loan maturity.
Commercial & Industrial			12				0.01	%			Deferred 6 months of interest to loan maturity.
Total		$	1,273

		*Term Extensions*
		*Amortized Cost Basis*				*% of Total Class of*
		*December 31, 2025*				*Financing Receivable*					*Financial Effect*

(Amounts in thousands)
Single Family Owner Occupied		$	68				0.01	%			Extended term by 10.5 years.
Commercial & Industrial			32				0.01	%			Delayed repayment of P & I for 24-46 months.
Total		$	100

		*Term Extension and Rate Reduction*
		*Amortized Cost Basis*				*% of Total Class of*
		*December 31, 2025*				*Financing Receivable*					*Financial Effect*

(Amounts in thousands)
Single Family Owner Occupied		$	976				0.15	%			Reduced interest income and extended time to recover principal.
Consumer			4				0.01	%			Reduced rate to 10.5%; extended term by ten months.
Total		$	980

		Interest Rate Reduction
		Amortized Cost Basis				% of Total Class of
		December 31, 2025				Financing Receivable			Financial Effect

(Amounts in thousands)
Single Family Owner Occupied		$	89				0.01	%	Reduced interest rate from 3.15% to 1.95%
Total		$	89

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. There were no modified loans (or portions of a loan) deemed uncollectible as of June 30, 2026, or December 31, 2025.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified for the periods indicated:

		*June 30, 2026*
		*Payment Status (Amortized Cost Basis)*
		*Current*				*30-89 Days Past Due*				*90+ Days Past Due*
(Amounts in thousands)
Non-Farm, Non-Residential Property		$	450			$	343			$	-
Single Family Owner Occupied			1,177				525				42
Single Family Non-Owner Occupied			14				-				-
Agricultural			222				-				-
Commercial & Industrial			579				49				-
Consumer			14				20				-
Total		$	2,456			$	937			$	42

		*December 31, 2025*
		*Payment Status (Amortized Cost Basis)*
		*Current*				*30-89 Days Past Due*				*90+ Days Past Due*


(Amounts in thousands)
Non-Farm, Non-Residential Property		$	594			$	-			$	-
Single Family Owner Occupied			1,358				401				21
Single Family Non-Owner Occupied			-				20				-
Commercial & Industrial			44				-				-
Consumer			4				-				-
Total		$	2,000			$	421			$	21

The following table provides information about other real estate owned (“OREO”), which consists of properties acquired through foreclosure, as of the dates indicated:

		*June 30, 2026*				*December 31, 2025*
(Amounts in thousands)
OREO		$	52			$	-

OREO secured by residential real estate		$	45			$	-
Residential real estate loans in the foreclosure process (1)		$	3,654			$	2,687

(1)	The recorded investment in mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction