Loan and Allowance for Credit Losses	6 Months Ended
Loan and Allowance for Credit Losses	Jun. 30, 2026
Loans And Leases Receivable Disclosure [Abstract]
Loans and leases receivable disclosure [Text Block]	NOTE 4: LOANS AND ALLOWANCE FOR CREDIT LOSSES June 30, December 31, (Dollars in thousands) 2026 2025 Commercial and industrial $ 27,754 $ 33,887 Municipal 35,020 24,513 Construction and land development 58,855 56,436 Commercial real estate: Owner occupied 56,118 59,568 Hotel/motel 54,455 47,870 Multifamily 61,606 51,516 Other 161,346 166,567 Total commercial real estate 333,525 325,521 Residential real estate: Consumer mortgage 61,348 59,781 Investment property 53,460 56,773 Total residential real estate 114,808 116,554 Consumer installment 9,919 8,421 Total loans, net of unearned income before basis adjustment 579,881 565,332 Basis adjustment associated with fair value hedge (1) (292) 22 Total loans, net of unearned income $ 579,589 $ 565,354 (1) Represents the basis adjustment associated with application of hedge accounting on certain loans. The basis adjustment will be allocated to the amortized cost of associated loans within the portfolio if the hedge accounting is discontinued. Refer to Note 7 - Derivative Instruments for additional information. Loans secured by real estate were approximately 87.5% of the Company’s total loan portfolio at June 30, 2026. At June 30, 2026, the Company’s geographic loan distribution was concentrated primarily in Lee County, Alabama, and surrounding areas. The loan portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. As part of the Company’s quarterly assessment of the allowance, the loan portfolio is disaggregated into the following portfolio segments: commercial and industrial, municipal, construction and land development, commercial real estate, residential real estate, and consumer installment. Where appropriate, the Company’s loan portfolio segments are further disaggregated into classes. A class is generally determined based on the initial measurement attribute, risk characteristics of the loan, and an entity’s method for monitoring and determining credit risk. During the first quarter of 2026, the Company refined its loan portfolio segmentation to separately identify municipal loans, which were previously included within commercial and industrial loans, due to their recent growth and distinct risk characteristics. The allowance for credit losses related to municipal loans is determined using a discounted cash flow methodology incorporating probability of default and loss given default assumptions derived from external data sources. As a result of this refinement, the total allowance decreased due to the lower expected credit losses associated with these loans. This refinement represents a change in accounting estimate and is accounted for prospectively. Accordingly, the allowance for credit losses and the provision for credit losses for prior periods have not been revised. Loan balances in prior period tables have been reclassified to conform to the current period presentation. The following describes the risk characteristics relevant to each of the portfolio segments and classes. Commercial and industrial — includes loans to finance business operations, equipment purchases, or other needs for small and medium-sized commercial customers. Also included in this category are loans to finance agricultural production. Generally, the primary source of repayment is the cash flow from business operations and activities of the borrower. Municipal — includes loans to state and local governmental entities and related public-sector organizations to finance capital projects, infrastructure improvements, and other governmental or public service needs. These loans are typically supported by general tax revenues, utility revenues, special assessments, or other dedicated revenue sources of the municipality. Repayment is primarily dependent on the financial capacity and revenue-generating ability of the governmental entity. Construction and land development — includes both loans and credit lines for the purpose of purchasing, carrying, and developing land into commercial developments or residential subdivisions. Also included are loans and lines for construction of residential, multifamily, and commercial buildings. Generally, the primary source of repayment is dependent upon the sale or refinancing of the real estate collateral. Commercial real estate — includes loans disaggregated in these classes: ● Owner occupied – includes loans secured by business facilities to finance business operations, equipment and owner-occupied facilities primarily for small and medium-sized commercial customers. Generally, the primary source of loan repayment are the cash flows from business operations and activities of the borrower, who owns the property. ● Hotel/motel – includes loans for hotels and motels. Generally, the primary source of repayment is dependent upon income generated from the real estate collateral. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the borrower. ● Multifamily – primarily includes loans to finance income-producing multifamily properties. Loans in this class include loans for 5 or more unit residential property and apartments leased to residents. Generally, the primary source of repayment is dependent upon income generated from the real estate collateral. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the respective borrower. ● Other – primarily includes loans to finance income-producing commercial real estate. Loans in this class include loans for neighborhood retail centers, medical and professional offices, single retail stores, industrial buildings, and warehouses leased generally to local businesses and residents. Generally , the primary source of repayment is dependent upon income generated from the real estate collateral. The underwriting of these loans takes into consideration the occupancy and rental rates, as well as the financial health of the borrower. Residential real estate — includes loans disaggregated into two classes: ● Consumer mortgage – primarily includes first or second lien mortgages and home equity lines to consumers that are secured by a primary residence or second home. These loans are underwritten in accordance with the Bank’s general loan policies and procedures which require, among other things, proper documentation of each borrower’s financial condition, satisfactory credit history, and property value. ● Investment property – primarily includes loans to finance income-producing 1-4 family residential properties. Generally, the primary source of repayment is dependent upon income generated from leasing the property securing the loan. The underwriting of these loans takes into consideration the rental rates, as well as the financial health of the borrowers. Consumer installment — includes loans to individuals, both secured by personal property and unsecured. Loans include personal lines of credit, automobile loans, and other retail loans. These loans are underwritten in accordance with the Bank’s general loan policies and procedures which require, among other things, proper documentation of each borrower’s financial condition, satisfactory credit history, and, if applicable, property value. The following is a summary of current, accruing past due, and nonaccrual loans by portfolio segment and class as of June 30, 2026 and December 31, 2025. Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total (Dollars in thousands) Current Past Due 90 days Loans Accrual Loans June 30, 2026: Commercial and industrial $ 27,678 76 — 27,754 — $ 27,754 Municipal 35,020 — — 35,020 — 35,020 Construction and land development 58,757 98 — 58,855 — 58,855 Commercial real estate: Owner occupied 56,118 — — 56,118 — 56,118 Hotel/motel 54,455 — — 54,455 — 54,455 Multifamily 61,606 — — 61,606 — 61,606 Other 161,346 — — 161,346 — 161,346 Total commercial real estate 333,525 — — 333,525 — 333,525 Residential real estate: Consumer mortgage 61,232 52 — 61,284 64 61,348 Investment property 53,225 235 — 53,460 — 53,460 Total residential real estate 114,457 287 — 114,744 64 114,808 Consumer installment 9,881 38 — 9,919 — 9,919 Total $ 579,318 499 — 579,817 64 $ 579,881 December 31, 2025: Commercial and industrial $ 33,881 6 — 33,887 — $ 33,887 Municipal 24,513 — — 24,513 — 24,513 Construction and land development 56,395 41 — 56,436 — 56,436 Commercial real estate: Owner occupied 59,085 105 — 59,190 378 59,568 Hotel/motel 47,870 — — 47,870 — 47,870 Multifamily 51,516 — — 51,516 — 51,516 Other 166,567 — — 166,567 — 166,567 Total commercial real estate 325,038 105 — 325,143 378 325,521 Residential real estate: Consumer mortgage 58,993 720 — 59,713 68 59,781 Investment property 56,737 — — 56,737 36 56,773 Total residential real estate 115,730 720 — 116,450 104 116,554 Consumer installment 8,348 73 — 8,421 — 8,421 Total $ 563,905 945 — 564,850 482 $ 565,332 Credit Quality Indicators The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. These categories are utilized to develop the associated allowance for credit losses using historical losses adjusted for qualitative and environmental factors and are defined as follows: ● Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral. ● Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. ● Substandard Accruing – loans that exhibit a well-defined weakness which presently jeopardizes debt repayment, even though they are currently performing. These loans are characterized by the distinct possibility that the Company may incur a loss in the future if these weaknesses are not corrected. ● Nonaccrual – includes loans where management has determined that full payment of principal and interest is not e xpected. During 2026, the Company established municipal loans as a separate portfolio segment. Certain prior period amounts have been reclassified to conform to the current period presentation. The following tables present credit quality indicators for the loan portfolio segments and classes by year of origination as of June 30, 2026 and December 31, 2025. Year of Origination 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Total Loans (Dollars in thousands) June 30, 2026: Commercial and industrial Pass $ 1,843 6,218 3,830 3,355 1,191 10,304 813 27,554 Special mention — — — — — — — — Substandard accruing 74 — — 1 125 — — 200 Nonaccrual — — — — — — — — Total commercial and industrial 1,917 6,218 3,830 3,356 1,316 10,304 813 27,754 Current period gross charge-offs — — — 5 — — — 5 Municipal Pass $ 11,853 — — 1,157 3,975 16,546 1,489 35,020 Special mention — — — — — — — — Substandard accruing — — — — — — — — Nonaccrual — — — — — — — — Total municipal 11,853 — — 1,157 3,975 16,546 1,489 35,020 Current period gross charge-offs — — — — — — — — Construction and land development Pass 18,048 31,551 4,064 1,761 1,974 — 1,418 58,816 Special mention — — — — — — — — Substandard accruing — — — — 39 — — 39 Nonaccrual — — — — — — — — Total construction and land development 18,048 31,551 4,064 1,761 2,013 — 1,418 58,855 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 1,058 10,375 1,417 9,141 5,961 26,713 354 55,019 Special mention — — — — — — 608 608 Substandard accruing — — 491 — — — — 491 Nonaccrual — — — — — — — — Total owner occupied 1,058 10,375 1,908 9,141 5,961 26,713 962 56,118 Current period gross charge-offs — — — — — 378 — 378 Hotel/motel Pass 11,429 4,896 14,144 5,890 8,739 9,357 — 54,455 Special mention — — — — — — — — Substandard accruing — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 11,429 4,896 14,144 5,890 8,739 9,357 — 54,455 Current period gross charge-offs — — — — — — — — Year of Origination 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Total Loans (Dollars in thousands) June 30, 2026: Multifamily Pass 3,646 1,146 3,564 20,157 20,224 9,804 116 58,657 Special mention — — — — — — — — Substandard accruing — — — — — 2,949 — 2,949 Nonaccrual — — — — — — — — Total multifamily 3,646 1,146 3,564 20,157 20,224 12,753 116 61,606 Current period gross charge-offs — — — — — — — — Other Pass 25,989 25,461 32,442 16,546 26,592 33,386 930 161,346 Special mention — — — — — — — — Substandard accruing — — — — — — — — Nonaccrual — — — — — — — — Total other 25,989 25,461 32,442 16,546 26,592 33,386 930 161,346 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 5,102 5,827 3,545 15,502 16,088 12,268 1,972 60,304 Special mention — — — — — 226 — 226 Substandard accruing — — — — — 754 — 754 Nonaccrual — — — — — — 64 64 Total consumer mortgage 5,102 5,827 3,545 15,502 16,088 13,248 2,036 61,348 Current period gross charge-offs — — — — — — — — Investment property Pass 4,348 6,868 7,962 8,244 9,170 14,841 1,664 53,097 Special mention — — — — — — — — Substandard accruing — 234 — 37 90 2 — 363 Nonaccrual — — — — — — — — Total investment property 4,348 7,102 7,962 8,281 9,260 14,843 1,664 53,460 Current period gross charge-offs — — — — — — — — Consumer installment Pass 3,601 2,983 1,406 607 632 195 481 9,905 Special mention — — 5 — — — — 5 Substandard accruing — — 5 — — — 4 9 Nonaccrual — — — — — — — — Total consumer installment 3,601 2,983 1,416 607 632 195 485 9,919 Current period gross charge-offs — 22 — 14 — — — 36 Total loans Pass 86,917 95,325 72,374 82,360 94,546 133,414 9,237 574,173 Special mention — — 5 — — 226 608 839 Substandard accruing 74 234 496 38 254 3,705 4 4,805 Nonaccrual — — — — — — 64 64 Total loans $ 86,991 95,559 72,875 82,398 94,800 137,345 9,913 $ 579,881 Total current period gross charge-offs $ — 22 — 19 — 378 — $ 419 Year of Origination 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Total Loans (Dollars in thousands) December 31, 2025: Commercial and industrial Pass $ 8,566 5,035 3,970 2,865 4,366 8,074 778 $ 33,654 Special mention 74 4 7 — — — — 85 Substandard accruing — — 7 139 2 — — 148 Nonaccrual — — — — — — — — Total commercial and industrial 8,640 5,039 3,984 3,004 4,368 8,074 778 33,887 Current period gross charge-offs 40 — 99 3 — — — 142 Municipal Pass $ 837 — 1,156 4,190 6,013 9,145 3,172 $ 24,513 Special mention — — — — — — — — Substandard accruing — — — — — — — — Nonaccrual — — — — — — — — Total municipal 837 — 1,156 4,190 6,013 9,145 3,172 24,513 Current period gross charge-offs — — — — — — — — Construction and land development Pass 31,315 14,175 7,321 2,080 69 711 765 56,436 Special mention — — — — — — — — Substandard accruing — — — — — — — — Nonaccrual — — — — — — — — Total construction and land development 31,315 14,175 7,321 2,080 69 711 765 56,436 Current period gross charge-offs — — — — — — — — Commercial real estate: Owner occupied Pass 9,755 1,312 11,889 6,235 13,830 11,618 2,682 57,321 Special mention 620 — — — — — 750 1,370 Substandard accruing — 499 — — — — — 499 Nonaccrual — — — — — 378 — 378 Total owner occupied 10,375 1,811 11,889 6,235 13,830 11,996 3,432 59,568 Current period gross charge-offs — — — — — 296 — 296 Hotel/motel Pass 5,012 14,161 6,143 8,976 2,948 10,630 — 47,870 Special mention — — — — — — — — Substandard accruing — — — — — — — — Nonaccrual — — — — — — — — Total hotel/motel 5,012 14,161 6,143 8,976 2,948 10,630 — 47,870 Current period gross charge-offs — — — — — — — — Year of Origination 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Total Loans (Dollars in thousands) December 31, 2025: Multifamily Pass 1,254 3,615 12,550 20,560 1,726 8,652 142 48,499 Special mention — — — — — — — — Substandard accruing — — — — — 3,017 — 3,017 Nonaccrual — — — — — — — — Total multifamily 1,254 3,615 12,550 20,560 1,726 11,669 142 51,516 Current period gross charge-offs — — — — — — — — Other Pass 25,027 41,004 12,501 28,033 17,244 24,310 17,589 165,708 Special mention — 364 — — 495 — — 859 Substandard accruing — — — — — — — — Nonaccrual — — — — — — — — Total other 25,027 41,368 12,501 28,033 17,739 24,310 17,589 166,567 Current period gross charge-offs — — — — — — — — Residential real estate: Consumer mortgage Pass 6,413 4,344 16,249 16,527 2,263 10,977 1,692 58,465 Special mention — — — — — 184 65 249 Substandard accruing — — — — — 754 245 999 Nonaccrual — — 68 — — — — 68 Total consumer mortgage 6,413 4,344 16,317 16,527 2,263 11,915 2,002 59,781 Current period gross charge-offs — — 4 — — 1 — 5 Investment property Pass 9,332 8,045 10,016 9,849 6,790 10,375 1,999 56,406 Special mention — — — — — — — — Substandard accruing 236 — — 91 4 — — 331 Nonaccrual — — 36 — — — — 36 Total investment property 9,568 8,045 10,052 9,940 6,794 10,375 1,999 56,773 Current period gross charge-offs — — 2 — — — — 2 Consumer installment Pass 4,121 1,981 972 780 137 81 304 8,376 Special mention — 7 2 — — — — 9 Substandard accruing 8 7 21 — — — — 36 Nonaccrual — — — — — — — — Total consumer installment 4,129 1,995 995 780 137 81 304 8,421 Current period gross charge-offs 42 45 9 — — — — 96 Total loans Pass 101,632 93,672 82,767 100,095 55,386 94,573 29,123 557,248 Special mention 694 375 9 — 495 184 815 2,572 Substandard accruing 244 506 28 230 6 3,771 245 5,030 Nonaccrual — — 104 — — 378 — 482 Total loans $ 102,570 94,553 82,908 100,325 55,887 98,906 30,183 $ 565,332 T otal current period gross charge-offs $ 82 45 114 3 — 297 — $ 541 Allowance for Credit Losses The allowance for credit losses is estimated under the Current Expected Credit Losses (“CECL”) methodology set forth in FASB ASC 326, Financial Instruments – Credit Losses . Under the CECL methodology, the allowance for credit losses is measured on a collective basis for pools of loans with similar risk characteristics, and for loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. The composition of the provision for credit losses for the respective periods is presented below. Quarter ended June 30, Six months ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Provision for credit losses: Loans $ (212) $ 166 $ (210) $ 110 Reserve for unfunded commitments (36) (53) (114) (7) Total provision for credit losses $ (248) $ 113 $ (324) $ 103 The provision for credit losses for the quarter and six months reflects both changes in credit conditions and the impact of the refinement in portfolio segmentation during the first quarter of 2026, including the reclassification of municipal loans previously included in commercial and industrial loans. The following table details the changes in the allowance for credit losses for loans, by portfolio segment, for the respective periods. (Dollars in thousands) Commercial and industrial Municipal Construction and land development Commercial real estate Residential real estate Consumer installment Total Quarter ended June 30, 2026: Beginning balance $ 686 154 694 4,056 1,029 157 $ 6,776 Charge-offs — — — — — (3) (3) Recoveries 4 — — — 7 14 25 Net (charge-offs) recoveries 4 — — — 7 11 22 Provision for credit losses (148) (4) (19) (97) 58 (2) (212) Ending balance $ 542 150 675 3,959 1,094 166 $ 6,586 Six months ended June 30, 2026: Beginning balance $ 1,129 — 1,304 3,777 837 129 $ 7,176 Charge-offs (5) — — (378) — (36) (419) Recoveries 4 — — — 9 26 39 Net (charge-offs) recoveries (1) — — (378) 9 (10) (380) Provision for credit losses (586) 150 (629) 560 248 47 (210) Ending balance $ 542 150 675 3,959 1,094 166 $ 6,586 Quarter ended June 30, 2025: Beginning balance $ 1,219 n/a 1,401 3,153 861 116 $ 6,750 Charge-offs (3) n/a — — (6) (9) (18) Recoveries 1 n/a — — 61 5 67 Net (charge-offs) recoveries (2) n/a — — 55 (4) 49 Provision for credit losses (5) n/a 212 (2) (50) 11 166 Ending balance $ 1,212 n/a 1,613 3,151 866 123 $ 6,965 Six months ended June 30, 2025: Beginning balance $ 1,244 n/a 1,059 3,842 588 138 $ 6,871 Charge-offs (103) n/a — — (7) (9) (119) Recoveries 30 n/a — — 63 10 103 Net (charge-offs) recoveries (73) n/a — — 56 1 (16) Provision for credit losses 41 n/a 554 (691) 222 (16) 110 Ending balance $ 1,212 n/a 1,613 3,151 866 123 $ 6,965 During the first quarter of 2026, the Company refined its loan portfolio segmentation to separately identify municipal loans, which were previously included within commercial and industrial loans, due to their recent growth and distinct risk characteristics. The allowance for credit losses related to municipal loans is determined using a discounted cash flow methodology incorporating probability of default and loss given default assumptions derived from external data sources. As a result of this refinement, the total allowance decreased due to the lower expected credit losses associated with these loans. This refinement represents a change in accounting estimate and is accounted for prospectively. Accordingly, the allowance for credit losses and the provision for credit losses for prior periods have not been revised. Loan balances in prior period tables have been reclassified to present municipal loans as a separate segment to conform to the current period presentation. The Company designates certain individually evaluated loans on nonaccrual status as collateral -dependent loans. Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and amortized costs. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Company had no collateral dependent loans which were individually evaluated at June 30, 2026. The following table presents the amortized cost basis of collateral dependent loans, which were individually evaluated to determine expected credit losses at December 31, 2025. (Dollars in thousands) Real Estate Total Loans December 31, 2025: Commercial real estate $ 378 $ 378 Total $ 378 $ 378 At June 30, 2026 and December 31, 2025, the Company had one additional individually evaluated commercial real estate loan in the amount of $ 3.0 million that was not considered collateral dependent and was accruing in accordance with its contractual terms. This loan had an allowance of $ 0.5 million at June 30, 2026 and December 31, 2025, respectively. The allowance for this loan was measured using the present value of expected future cash flows, discounted at the loan’s effective interest rate. Expected cash flows were developed using probability of default and loss given default assumptions specific to the borrower. The following table summarizes the Company’s nonaccrual loans by major categories for the respective periods. Nonaccrual Loans Nonaccrual Loans Total (Dollars in thousands) With No Allowance With An Allowance Nonaccrual Loans June 30, 2026 Residential real estate $ — 64 $ 64 Total $ — 64 $ 64 December 31, 2025 Commercial real estate $ 378 — $ 378 Residential real estate — 104 104 Total $ 378 104 $ 482 The Company did not recognize any interest income on nonaccrual loans during the quarter or six months ended June 30, 2026 and 2025. There were no modifications to borrowers experiencing financial difficulty during