| Loans and Allowance for Credit Losses |
Note 4 - Loans and Allowance for Credit Losses A summary of the balances of loans and leases follows: | | | | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | Real estate | | | | | | | Construction and land | | $ | 44,201 | | $ | 48,372 | Farmland | | | 25,773 | | | 17,085 | 1-4 Residential and multi-family | | | 153,195 | | | 151,326 | Commercial Real Estate | | | 65,433 | | | 61,526 | Total real estate | | | 288,602 | | | 278,309 | Agriculture | | | 35 | | | 33 | Commercial | | | 9,833 | | | 8,813 | Municipalities | | | 15,163 | | | 14,890 | Consumer and other | | | 4,019 | | | 4,600 | Subtotal | | | 317,652 | | | 306,645 | Less: allowance for credit losses | | | (3,576) | | | (3,440) | Loans and leases, net | | $ | 314,076 | | $ | 303,205 |
Direct financing leases of $998 and $1,219 are included in consumer and other loans at June 30, 2026 and December 31, 2025, respectively. The following tables set forth information regarding the activity in the allowance for credit losses for the three and six months ended June 30, 2026 and June 30, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Real Estate | | | | | | | | | | | | | | | | Allowance for credit losses: | | Construction
and Land | | Farmland | | 1-4 Residential
& multi-family | | Commercial
real estate | | Agriculture | | Commercial | | Municipalities | | Consumer
and other | | Total | Three months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning balance, April 1, 2026 | | $ | 591 | | $ | 150 | | $ | 1,350 | | $ | 751 | | $ | 1 | | $ | 424 | | $ | 99 | | $ | 71 | | $ | 3,437 | Provision (credit) for credit losses | | | (48) | | | 105 | | | 65 | | | 19 | | | — | | | 7 | | | (2) | | | (1) | | | 145 | Loans charged-off | | | — | | | — | | | — | | | — | | | — | | | (3) | | | — | | | (9) | | | (12) | Recoveries | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 6 | | | 6 | Balance, June 30, 2026 | | $ | 543 | | $ | 255 | | $ | 1,415 | | $ | 770 | | $ | 1 | | $ | 428 | | $ | 97 | | $ | 67 | | $ | 3,576 | Six months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance, January 1, 2026 | | $ | 591 | | $ | 152 | | $ | 1,399 | | $ | 718 | | $ | 1 | | $ | 407 | | $ | 102 | | $ | 70 | | $ | 3,440 | Provision (credit) for credit losses | | | (48) | | | 103 | | | 16 | | | 52 | | | — | | | 24 | | | (5) | | | 9 | | | 151 | Loans charged-off | | | — | | | — | | | — | | | — | | | — | | | (3) | | | — | | | (19) | | | (22) | Recoveries | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 7 | | | 7 | Balance, June 30, 2026 | | $ | 543 | | $ | 255 | | $ | 1,415 | | $ | 770 | | $ | 1 | | $ | 428 | | $ | 97 | | $ | 67 | | $ | 3,576 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | | Real Estate | | | | | | | | | | | | | | | | Allowance for credit losses: | | Construction
and Land | | Farmland | | 1-4 Residential
& multi-family | | Commercial
real estate | | Agriculture | | Commercial | | Municipalities | | Consumer
and other | | Total | Three months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning balance, April 1, 2025 | | $ | 661 | | $ | 77 | | $ | 1,376 | | $ | 619 | | $ | 1 | | $ | 359 | | $ | 93 | | $ | 87 | | $ | 3,273 | Provision for credit losses | | | (108) | | | — | | | 60 | | | 19 | | | — | | | (3) | | | (1) | | | (4) | | | (37) | Loans charged-off | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (11) | | | (11) | Recoveries | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 2 | | | 2 | Balance, June 30, 2025 | | $ | 553 | | $ | 77 | | $ | 1,436 | | $ | 638 | | $ | 1 | | $ | 356 | | $ | 92 | | $ | 74 | | $ | 3,227 | Six months ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance, January 1, 2025 | | $ | 632 | | $ | 74 | | $ | 1,355 | | $ | 605 | | $ | 1 | | $ | 375 | | $ | 83 | | $ | 97 | | $ | 3,222 | Provision for credit losses | | | (79) | | | 3 | | | 84 | | | 33 | | | — | | | (19) | | | 9 | | | (5) | | | 26 | Loans charged-off | | | — | | | — | | | (3) | | | — | | | — | | | — | | | — | | | (21) | | | (24) | Recoveries | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | | | 3 | Balance, June 30, 2025 | | $ | 553 | | $ | 77 | | $ | 1,436 | | $ | 638 | | $ | 1 | | $ | 356 | | $ | 92 | | $ | 74 | | $ | 3,227 |
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days and still accruing interest as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | June 30, 2026 | | | Nonaccrual
without
Allowance | | Nonaccrual
with Allowance | | Loans Past
Due Over 90 Days Still Accruing | Real estate | | | | | | | | | | Construction and land | | $ | — | | $ | — | | $ | 109 | Farmland | | | — | | | — | | | — | 1‑4 Residential & multi-family | | | 938 | | | — | | | — | Commercial real estate | | | 38 | | | — | | | — | Agriculture | | | — | | | — | | | — | Commercial | | | 61 | | | 252 | | | — | Municipalities | | | — | | | — | | | — | Consumer and other | | | 3 | | | — | | | — | Total | | $ | 1,040 | | $ | 252 | | $ | 109 |
| | | | | | | | | | | | December 31, 2025 | | | Nonaccrual
without
Allowance | | Nonaccrual
with Allowance | | Loans Past
Due Over 90 Days Still Accruing | Real estate | | | | | | | | | | Construction and land | | $ | — | | $ | — | | $ | — | Farmland | | | — | | | — | | | — | 1‑4 Residential & multi-family | | | 968 | | | — | | | — | Commercial real estate | | | 42 | | | — | | | — | Agriculture | | | — | | | — | | | — | Commercial | | | 67 | | | 933 | | | 1 | Municipalities | | | — | | | — | | | — | Consumer and other | | | 4 | | | — | | | — | Total | | $ | 1,081 | | $ | 933 | | $ | 1 |
The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2026 or June 30, 2025. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | June 30, 2026 | | | Real
Estate | | Accounts
Receivable
and
Inventory | | Other | Real estate | | | | | | | | | | 1-4 Residential & multi-family | | $ | 1,054 | | $ | — | | $ | — | Commercial real estate | | | 38 | | | — | | | — | Commercial | | | — | | | 223 | | | 90 | Consumer and other | | | — | | | — | | | 3 | Total | | $ | 1,092 | | $ | 223 | | $ | 93 |
| | | | | | | | | | | | December 31, 2025 | | | Real
Estate | | Accounts
Receivable
and
Inventory | | Other | Real estate | | | | | | | | | | 1-4 Residential & multi-family | | $ | 1,090 | | $ | — | | $ | — | Commercial real estate | | | 42 | | | — | | | — | Commercial | | | — | | | 247 | | | 753 | Consumer and other | | | — | | | — | | | 3 | Total | | $ | 1,132 | | $ | 247 | | $ | 756 |
The Company had $1,408 and $2,135 in collateral-dependent loans at June 30, 2026 and December 31, 2025, respectively. Internal Risk Categories A loan is considered collateral-dependent when based on current information and events it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Collateral dependent loans include nonperforming loans (nonaccrual loans), loans performing but with deterioration that leads to doubt regarding collectability. Loans that do not share risk characteristics are evaluated on an individual basis. For collateral-dependent loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral, less estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan. The Company monitors credit quality within its portfolio segments based on primary credit quality indicators. All of the Company’s loans and leases are evaluated using pass rated or reservable criticized as the primary credit quality indicator. The term reservable criticized refers to those loans and leases that are internally classified or listed by the Company as special mention, substandard, doubtful or loss. These assets pose an elevated risk and may have a high probability of default or total loss. The classifications of loans and leases reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on credits quarterly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each quarterly reporting period. The methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness; however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits with this classification have often become collateral dependent and any shortage in collateral or other likely loss amount is recorded as a specific valuation allowance. Credits rated doubtful are generally also placed on nonaccrual status. Credits rated loss are those that are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be realized in the future. Pass rated refers to loans that are not considered criticized. In addition to this primary credit quality indicator, the Company uses other credit quality indicators for certain types of loans. The Company evaluates the loan risk grading system definitions and allowance for credit loss methodology on an ongoing basis. No significant changes in methodology were made during the six months ended June 30, 2026. Based on the most recent analysis performed, the risk category of loans by class of loans and gross chargeoffs as of June 30, 2026 and December 31, 2025 are as follows: | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Term Loans Amortized Cost Basis by Origination Year | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Total | Construction and land | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 8,670 | | $ | 15,756 | | $ | 13,980 | | $ | 730 | | $ | 1,417 | | $ | 1,553 | | $ | 42,106 | Special mention | | | — | | | 1,372 | | | 723 | | | — | | | — | | | — | | | 2,095 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 8,670 | | $ | 17,128 | | $ | 14,703 | | $ | 730 | | $ | 1,417 | | $ | 1,553 | | $ | 44,201 | Farmland | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 9,358 | | $ | 8,379 | | $ | 2,854 | | $ | 2,206 | | $ | 1,350 | | $ | 1,415 | | $ | 25,562 | Special mention | | | — | | | — | | | — | | | — | | | 211 | | | — | | | 211 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 9,358 | | $ | 8,379 | | $ | 2,854 | | $ | 2,206 | | $ | 1,561 | | $ | 1,415 | | $ | 25,773 | 1-4 Residential & multi-family | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 10,389 | | $ | 12,310 | | $ | 10,584 | | $ | 20,405 | | $ | 16,046 | | $ | 74,247 | | $ | 143,981 | Special mention | | | 6,373 | | | — | | | — | | | 273 | | | — | | | 600 | | | 7,246 | Substandard | | | — | | | 91 | | | — | | | 671 | | | — | | | 1,206 | | | 1,968 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 16,762 | | $ | 12,401 | | $ | 10,584 | | $ | 21,349 | | $ | 16,046 | | $ | 76,053 | | $ | 153,195 | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 4,401 | | $ | 16,161 | | $ | 11,952 | | $ | 12,845 | | $ | 4,801 | | $ | 14,582 | | $ | 64,742 | Special mention | | | — | | | — | | | — | | | — | | | — | | | 653 | | | 653 | Substandard | | | — | | | — | | | — | | | — | | | — | | | 38 | | | 38 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 4,401 | | $ | 16,161 | | $ | 11,952 | | $ | 12,845 | | $ | 4,801 | | $ | 15,273 | | $ | 65,433 | Agriculture | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 16 | | $ | — | | $ | — | | $ | 19 | | $ | — | | $ | — | | $ | 35 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 16 | | $ | — | | $ | — | | $ | 19 | | $ | — | | $ | — | | $ | 35 | Commercial | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 1,929 | | $ | 886 | | $ | 1,853 | | $ | 170 | | $ | 166 | | $ | 3,820 | | $ | 8,824 | Special mention | | | — | | | — | | | — | | | 27 | | | — | | | — | | | 27 | Substandard | | | — | | | — | | | 61 | | | 29 | | | — | | | 892 | | | 982 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 1,929 | | $ | 886 | | $ | 1,914 | | $ | 226 | | $ | 166 | | $ | 4,712 | | $ | 9,833 | Current period gross charge-offs | | $ | — | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 3 | Municipalities | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 633 | | $ | 5,800 | | $ | 7,984 | | $ | 746 | | $ | — | | $ | — | | $ | 15,163 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 633 | | $ | 5,800 | | $ | 7,984 | | $ | 746 | | $ | — | | $ | — | | $ | 15,163 | Consumer and other | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 1,161 | | $ | 1,032 | | $ | 1,175 | | $ | 168 | | $ | 85 | | $ | 362 | | $ | 3,983 | Special mention | | | — | | | 28 | | | 3 | | | — | | | — | | | — | | | 31 | Substandard | | | — | | | 5 | | | — | | | — | | | — | | | — | | | 5 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 1,161 | | $ | 1,065 | | $ | 1,178 | | $ | 168 | | $ | 85 | | $ | 362 | | $ | 4,019 | Current period gross charge-offs | | $ | 16 | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 19 |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Term Loans Amortized Cost Basis by Origination Year | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | Construction and land | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 17,279 | | $ | 19,483 | | $ | 8,354 | | $ | 1,522 | | $ | 585 | | $ | 1,149 | | $ | 48,372 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 17,279 | | $ | 19,483 | | $ | 8,354 | | $ | 1,522 | | $ | 585 | | $ | 1,149 | | $ | 48,372 | Current period gross charge-offs | | $ | — | | $ | — | | $ | 453 | | $ | — | | $ | — | | $ | — | | $ | 453 | Farmland | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 9,257 | | $ | 2,893 | | $ | 1,606 | | $ | 1,383 | | $ | 146 | | $ | 1,587 | | $ | 16,872 | Special mention | | | — | | | — | | | — | | | 213 | | | — | | | — | | | 213 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 9,257 | | $ | 2,893 | | $ | 1,606 | | $ | 1,596 | | $ | 146 | | $ | 1,587 | | $ | 17,085 | 1-4 Residential & multi-family | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 13,244 | | $ | 11,610 | | $ | 28,449 | | $ | 16,657 | | $ | 26,422 | | $ | 52,053 | | $ | 148,435 | Special mention | | | — | | | — | | | 275 | | | — | | | 243 | | | 352 | | | 870 | Substandard | | | — | | | — | | | 1,332 | | | — | | | — | | | 689 | | | 2,021 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 13,244 | | $ | 11,610 | | $ | 30,056 | | $ | 16,657 | | $ | 26,665 | | $ | 53,094 | | $ | 151,326 | Current period gross charge-offs | | $ | — | | $ | — | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | 3 | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 13,786 | | $ | 13,486 | | $ | 13,042 | | $ | 4,925 | | $ | 6,605 | | $ | 8,974 | | $ | 60,818 | Special mention | | | — | | | — | | | — | | | — | | | — | | | 666 | | | 666 | Substandard | | | — | | | — | | | — | | | — | | | — | | | 42 | | | 42 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 13,786 | | $ | 13,486 | | $ | 13,042 | | $ | 4,925 | | $ | 6,605 | | $ | 9,682 | | $ | 61,526 | Agriculture | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | — | | $ | — | | $ | 26 | | $ | — | | $ | 7 | | $ | — | | $ | 33 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | — | | $ | — | | $ | 26 | | $ | — | | $ | 7 | | $ | — | | $ | 33 | Commercial | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 1,722 | | $ | 1,671 | | $ | 444 | | $ | 207 | | $ | 12 | | $ | 3,757 | | $ | 7,813 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | 67 | | | — | | | — | | | 686 | | | 247 | | | 1,000 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 1,722 | | $ | 1,738 | | $ | 444 | | $ | 207 | | $ | 698 | | $ | 4,004 | | $ | 8,813 | Current period gross charge-offs | | $ | — | | $ | 8 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 8 | Municipalities | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 5,964 | | $ | 8,131 | | $ | 795 | | $ | — | | $ | — | | $ | — | | $ | 14,890 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 5,964 | | $ | 8,131 | | $ | 795 | | $ | — | | $ | — | | $ | — | | $ | 14,890 | Consumer and other | | | | | | | | | | | | | | | | | | | | | | Risk rating | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 1,930 | | $ | 1,713 | | $ | 314 | | $ | 143 | | $ | 469 | | $ | — | | $ | 4,569 | Special mention | | | 21 | | | 3 | | | 3 | | | — | | | — | | | — | | | 27 | Substandard | | | 4 | | | — | | | — | | | — | | | — | | | — | | | 4 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Loss | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | $ | 1,955 | | $ | 1,716 | | $ | 317 | | $ | 143 | | $ | 469 | | $ | — | | $ | 4,600 | Current period gross charge-offs | | $ | 45 | | $ | 7 | | $ | 8 | | $ | — | | $ | — | | $ | — | | $ | 60 |
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loans. The following is an aging analysis for loans as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | 30-59
Days
Past Due | | 60-89
Days
Past Due | | 90 Days
and
Greater | | Total
Past Due | | Current | | Total
Loans | Real estate | | | | | | | | | | | | | | | | | | | Construction and land | | $ | 580 | | $ | — | | $ | 109 | | $ | 689 | | $ | 43,512 | | $ | 44,201 | Farmland | | | — | | | — | | | — | | | — | | | 25,773 | | | 25,773 | 1‑4 Residential & multi-family | | | 369 | | | 506 | | | 762 | | | 1,637 | | | 151,558 | | | 153,195 | Commercial real estate | | | 5,980 | | | — | | | — | | | 5,980 | | | 59,453 | | | 65,433 | Agriculture | | | — | | | — | | | — | | | — | | | 35 | | | 35 | Commercial | | | — | | | 29 | | | — | | | 29 | | | 9,804 | | | 9,833 | Municipalities | | | — | | | 250 | | | — | | | 250 | | | 14,913 | | | 15,163 | Consumer and other | | | 9 | | | — | | | — | | | 9 | | | 4,010 | | | 4,019 | Total | | $ | 6,938 | | $ | 785 | | $ | 871 | | $ | 8,594 | | $ | 309,058 | | $ | 317,652 |
| | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | 30-59
Days
Past Due | | 60-89
Days
Past Due | | 90 Days
and
Greater | | Total
Past Due | | Current | | Total
Loans | Real estate | | | | | | | | | | | | | | | | | | | Construction and land | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 48,372 | | $ | 48,372 | Farmland | | | — | | | — | | | — | | | — | | | 17,085 | | | 17,085 | 1‑4 Residential & multi-family | | | 113 | | | 49 | | | — | | | 162 | | | 151,164 | | | 151,326 | Commercial real estate | | | — | | | — | | | — | | | — | | | 61,526 | | | 61,526 | Agriculture | | | — | | | — | | | — | | | — | | | 33 | | | 33 | Commercial | | | 181 | | | — | | | 1 | | | 182 | | | 8,631 | | | 8,813 | Municipalities | | | — | | | — | | | — | | | — | | | 14,890 | | | 14,890 | Consumer and other | | | 22 | | | 3 | | | — | | | 25 | | | 4,575 | | | 4,600 | Total | | $ | 316 | | $ | 52 | | $ | 1 | | $ | 369 | | $ | 306,276 | | $ | 306,645 |
All interest accrued but not collected for loans that are placed on nonaccrual status or are charged‐off is reversed against interest income. The interest on these loans is accounted for on the cash‐basis or cost‐recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. No interest income was recognized for loans on nonaccrual status for the three and six months ended June 30, 2026 and 2025. During the three and six months ended June 30, 2026 and 2025, there was no interest income recognized on collateral-dependent loans. During the three and six months ended June 30, 2026 and 2025, there were no modifications of loans to borrowers in financial difficulty. There were no modifications to borrowers with financial difficulty in the three and six months ended June 30, 2026 and 2025, that subsequently defaulted. The Company had no commitments to loan additional funds to borrowers whose loans have been modified but may on occasion extend financing to these borrowers.
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