Schedule of activity in the allowance for loan losses by loan class

The following tables disclose allowance for credit loss activity by loan class for the three and six months ended June 30, 2026 and June 30, 2025.


					Real estate-				Obligations
	Commercial,				construction		Real estate-		of states
(Dollars in thousands)	financial and		Real estate-		1-4 family		construction		and political		Real estate-
	agricultural		commercial		residential		other		subdivisions		mortgage		Personal		Total
Three Months Ended
June 30, 2026
Allowance for credit losses:
Beginning balance	$	1,135	$	3,239	$	5	$	1,495	$	30	$	1,338	$	23	$	7,265
Provision for credit losses		40		116		3		188		—		23		6		376
Loans charged off		—		—		—		—		—		(8)		(5)		(13)
Recoveries collected		—		—		—		—		—		—		1		1
Total ending allowance balance	$	1,175	$	3,355	$	8	$	1,683	$	30	$	1,353	$	25	$	7,629
Six Months Ended
June 30, 2026
Allowance for credit losses:
Beginning balance	$	1,201	$	3,087	$	6	$	1,415	$	30	$	1,320	$	24	$	7,083
Provision for credit losses		(26)		268		2		268		—		41		3		556
Loans charged off		—		—		—		—		—		(8)		(11)		(19)
Recoveries collected		—		—		—		—		—		—		9		9
Total ending allowance balance	$	1,175	$	3,355	$	8	$	1,683	$	30	$	1,353	$	25	$	7,629


					Real estate-				Obligations
	Commercial,				construction		Real estate-		of states
(Dollars in thousands)	financial and		Real estate-		1-4 family		construction		and political		Real estate-
	agricultural		commercial		residential		other		subdivisions		mortgage		Personal		Total
Three Months Ended
June 30, 2025
Allowance for credit losses:
Beginning balance	$	1,120	$	3,100	$	10	$	712	$	24	$	1,269	$	43	$	6,278
Provision for credit losses		29		18		2		284		(4)		12		8		349
Loans charged off		—		—		—		—		—		—		(11)		(11)
Recoveries collected		—		—		—		—		—		4		2		6
Total ending allowance balance	$	1,149	$	3,118	$	12	$	996	$	20	$	1,285	$	42	$	6,622
Six Months Ended
June 30, 2025
Allowance for credit losses:
Beginning balance	$	994	$	3,010	$	32	$	821	$	24	$	1,258	$	44	$	6,183
Provision for credit losses		155		108		(20)		175		(4)		27		12		453
Loans charged off		—		—		—		—		—		(4)		(18)		(22)
Recoveries collected		—		—		—		—		—		4		4		8
Total ending allowance balance	$	1,149	$	3,118	$	12	$	996	$	20	$	1,285	$	42	$	6,622

Schedule of Nonaccrual Loans by classes of the loan portfolio

The following tables present the amortized cost basis of loans on nonaccrual status, including nonaccrual status loans with no allowance, and loans past due over 89 days still accruing as of June 30, 2026 and December 31, 2025, respectively.


(Dollars in thousands)	Non-accrual with		Non-accrual with		Loans Past Due
	No Allowance		an Allowance		Over 89 Days
As of June 30, 2026	for Credit Loss		for Credit Loss		Still Accruing(1)
Commercial, financial and agricultural	$	—	$	124	$	—
Real estate - mortgage		177		—		—
Total	$	177	$	124	$	—


(Dollars in thousands)	Non-accrual with		Non-accrual with		Loans Past Due
	No Allowance		an Allowance		Over 89 Days
As of December 31, 2025	for Credit Loss		for Credit Loss		Still Accruing(1)
Commercial, financial and agricultural	$	—	$	148	$	—
Real estate - commercial		135		—		—
Real estate - construction:
Other construction loans		95		—		—
Real estate - mortgage		257		—		—
Total	$	487	$	148	$	—

(1)

These loans are guaranteed, or well-secured, and there is an effective means of collection in process.

Schedule of classes of loan portfolio summarized by the aggregate risk rating

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of June 30, 2026 and December 31, 2025, respectively.


(Dollars in thousands)
			Special
As of June 30, 2026	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	76,313	$	4,153	$	—	$	124	$	80,590
Real estate - commercial		269,991		13,185		—		—		283,176
Real estate - construction:
1-4 family residential construction		3,293		—		—		—		3,293
Other construction loans		72,437		—		—		—		72,437
Real estate - mortgage		174,904		360		177		—		175,441
Obligations of states and political subdivisions		18,377		—		—		—		18,377
Personal		2,920		—		—		—		2,920
Total	$	618,235	$	17,698	$	177	$	124	$	636,234


(Dollars in thousands)
			Special
As of December 31, 2025	Pass		Mention		Substandard		Doubtful		Total
Commercial, financial and agricultural	$	73,079	$	4,789	$	20	$	128	$	78,016
Real estate - commercial		260,712		12,288		135		—		273,135
Real estate - construction:
1-4 family residential construction		266		—		—		—		266
Other construction loans		57,703		—		95		—		57,798
Real estate - mortgage		173,170		462		257		—		173,889
Obligations of states and political subdivisions		15,258		—		—		—		15,258
Personal		3,016		—		—		—		3,016
Total	$	583,204	$	17,539	$	507	$	128	$	601,378

Based on the most recent analysis performed, the amortized cost basis by risk category of loans by class of loan and by origination year as of June 30, 2026 is as follows:


													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of June 30, 2026	2026		2025		2024		2023		2022		Prior		Cost Basis		to Term		Total
Commercial, financial and agricultural:
Risk Rating
Pass	$	7,524		21,446		4,750		5,756		1,208		5,041		30,588		—	$	76,313
Special Mention		—		—		122		1,196		250		2,007		578		—		4,153
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		52		—		72		—		—		124
Total commercial, financial and agricultural loans	$	7,524	$	21,446	$	4,872	$	7,004	$	1,458	$	7,120	$	31,166	$	—	$	80,590

Commercial, financial and agricultural loans:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real estate - commercial:
Risk Rating
Pass	$	20,988		35,047		32,438		34,596		49,250		90,907		6,039		726	$	269,991
Special Mention		—		—		—		4,933		250		7,802		200		—		13,185
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - commercial loans	$	20,988	$	35,047	$	32,438	$	39,529	$	49,500	$	98,709	$	6,239	$	726	$	283,176

Real estate - commercial:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real estate - construction - 1-4 family residential:
Risk Rating
Pass	$	856		2,437		—		—		—		—		—		—	$	3,293
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - construction - 1-4 family residential loans	$	856	$	2,437	$	—	$	—	$	—	$	—	$	—	$	—	$	3,293

Real estate - construction - 1-4 family residential:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real estate - construction - other:
Risk Rating
Pass	$	4,029	$	23,327	$	11,607	$	12,760	$	59	$	3,457	$	17,102	$	96	$	72,437
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - construction - other loans	$	4,029	$	23,327	$	11,607	$	12,760	$	59	$	3,457	$	17,102	$	96	$	72,437

Real estate - construction - other:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of June 30, 2026 (cont.)	2026		2025		2024		2023		2022		Prior		Cost Basis		to Term		Total
Real estate - mortgage:
Risk Rating
Pass	$	12,779		29,012		17,006		19,062		36,735		51,995		7,824		491	$	174,904
Special Mention		—		—		—		—		—		160		200		—		360
Substandard		—		—		—		—		—		177		—		—		177
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - mortgage loans	$	12,779	$	29,012	$	17,006	$	19,062	$	36,735	$	52,332	$	8,024	$	491	$	175,441

Real estate - mortgage:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	(8)	$	—	$	—	$	(8)

Obligations of states and political subdivisions:
Risk Rating
Pass	$	2,208	$	4,611	$	277		153	$	3,268	$	7,860	$	—	$	—	$	18,377
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Obligations of states and political subdivisions	$	2,208	$	4,611	$	277	$	153	$	3,268	$	7,860	$	—	$	—	$	18,377

Obligations of states and political subdivisions:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Personal:
Risk Rating
Pass	$	898		1,001		566		260		128		27		33		7	$	2,920
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total personal loans	$	898	$	1,001	$	566	$	260	$	128	$	27	$	33	$	7	$	2,920

Personal:
Current period gross write-offs	$	—	$	—	$	(3)	$	—	$	—	$	(8)	$	—	$	—	$	(11)

The amortized cost basis by risk category of loans by class of loan and by origination year as of December 31, 2025 is as follows:


													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of December 31, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Commercial, financial and agricultural:
Risk Rating
Pass	$	24,319	$	5,318	$	6,635	$	2,440	$	4,683	$	1,702	$	27,932	$	50	$	73,079
Special Mention		—		144		1,180		339		2,318		—		808		—		4,789
Substandard		—		—		—		—		—		20		—		—		20
Doubtful		—		—		56		—		—		72		—		—		128
Total commercial, financial and agricultural loans	$	24,319	$	5,462	$	7,871	$	2,779	$	7,001	$	1,794	$	28,740	$	50	$	78,016

Commercial, financial and agricultural loans:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real estate - commercial:
Risk Rating
Pass	$	41,145	$	28,795	$	36,261	$	52,202	$	30,612	$	65,773	$	5,186	$	738	$	260,712
Special Mention		—		—		4,911		—		—		7,177		200		—		12,288
Substandard		—		—		—		—		—		135		—		—		135
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - commercial loans	$	41,145	$	28,795	$	41,172	$	52,202	$	30,612	$	73,085	$	5,386	$	738	$	273,135

Real estate - commercial:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real estate - construction - 1-4 family residential:
Risk Rating
Pass	$	266	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	266
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - construction - 1-4 family residential loans	$	266	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	266

Real estate - construction - 1-4 family residential:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real estate - construction - other:
Risk Rating
Pass	$	18,024	$	13,667	$	10,203	$	67	$	339	$	3,155	$	12,149	$	99	$	57,703
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		95		—		95
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - construction - other loans	$	18,024	$	13,667	$	10,203	$	67	$	339	$	3,155	$	12,244	$	99	$	57,798

Real estate - construction - other:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


													Revolving		Revolving
(Dollars in thousands)													Loans		Loans
													Amortized		Converted
As of December 31, 2025 (cont.)	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Real estate - mortgage:
Risk Rating
Pass	$	30,511	$	18,278	$	20,514	$	38,757	$	14,328	$	42,776	$	7,444	$	562	$	173,170
Special Mention		—		—		—		93		—		169		200		—		462
Substandard		—		—		—		—		—		257		—		—		257
Doubtful		—		—		—		—		—		—		—		—		—
Total real estate - mortgage loans	$	30,511	$	18,278	$	20,514	$	38,850	$	14,328	$	43,202	$	7,644	$	562	$	173,889

Real estate - mortgage:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	(4)	$	—	$	—	$	(4)

Obligations of states and political subdivisions:
Risk Rating
Pass	$	2,725	$	293	$	219	$	3,541	$	1,681	$	6,699	$	100	$	—	$	15,258
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Obligations of states and political subdivisions	$	2,725	$	293	$	219	$	3,541	$	1,681	$	6,699	$	100	$	—	$	15,258

Obligations of states and political subdivisions:
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Personal:
Risk Rating
Pass	$	1,442	$	822	$	455	$	196	$	30	$	30	$	32	$	9	$	3,016
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total personal loans	$	1,442	$	822	$	455	$	196	$	30	$	30	$	32	$	9	$	3,016

Personal:
Current period gross write-offs	$	(5)	$	(2)	$	—	$	—	$	—	$	(23)	$	—	$	—	$	(30)