Loans consisted of the following as of the dates indicated below:

 Schedule of Loans

The following tables provide information on the Company’s allowance for credit losses by loan class and allowance methodology for the three and six months ended June 30, 2026 and 2025:

 Schedule of Allowance for Credit Losses on Financing Receivables

The Company recorded net loan charge-offs of $452,000 during the second quarter of 2026, compared to net loan charge-offs of $40,000 during the second quarter of 2025. The Company recorded net loan charge-offs of $801,000 during the six months ended June 30, 2026, compared to net loan charge-offs of $63,000 during the six months ended June 30, 2025.

The following table presents information regarding non-accrual and loans past due over 89 days and still accruing as of the dates indicated:

 Schedule of Non-accrual and Loans Past Due Over 89 Days Still Accruing

The Company has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following table presents information regarding the amortized cost basis and collateral type of collateral-dependent loans as of the dates indicated:

 Schedule of Amortized Cost Basis and Collateral Type

The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. The accrual of interest on non-performing loans is discontinued at the time the loan is 90 days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. There were no loans 90 days or more delinquent and accruing interest at either June 30, 2026 or December 31, 2025.

The following tables present information regarding the Company’s past due and non-accrual loans by loan class, as of the dates indicated:

 Schedule of Past Due Financing Receivables

Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the six months ended June 30, 2026 and 2025 would have increased interest income by $589,000 and $529,000, respectively. No interest income related to non-accrual loans was included in interest income for the three or six months ended June 30, 2026 and 2025.

The Company also categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with contractual loan terms. Classified loans are those that are assigned a special mention, substandard or doubtful risk rating using the following definitions:

Special Mention: Loans are currently protected by the current net worth and paying capacity of the obligor or of the collateral pledged but such protection is potentially weak. These loans constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. The credit risk may be relatively minor, yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset.

Substandard: Loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

The following table presents information regarding the Company’s risk category of loans by type and year of origination, as of the dates indicated:

 Schedule of Loans by Risk Category by Type and Year of Origination

The following table provides information regarding the Company’s allowance for credit losses related to unfunded loan commitments for the periods indicated:

 Schedule of Allowance for Credit Losses Related to Unfunded Loan Commitments

The Company made one loan modification to a single borrower experiencing financial difficulty during the three and six months ended June 30, 2026. The Company did not make any loan modifications to borrowers experiencing financial difficulty during the three months ended June 30, 2025. The Company made two loan modifications to a single borrower experiencing financial difficulty during the six months ended June 30, 2025. The following tables present the amortized cost basis of loans as of June 30, 2026 and 2025 that were both experiencing financial difficulty and modified during the six months ended June 30, 2026 and 2025 by class, type of modification and includes the financial effect of the modification.

 Schedule of Modifications to Borrowers Experiencing Financial Difficulty