v3.26.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Loans

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

 

   June 30,   December 31, 
(Dollars in thousands)  2026   2025 
         
One-to-four family residential real estate loans  $364,271   $375,299 
Construction and land loans   23,358    20,531 
Commercial real estate loans   407,756    394,323 
Commercial loans   177,904    178,201 
Agriculture loans   88,055    102,829 
Municipal loans   6,715    6,874 
Consumer loans   33,417    33,666 
Total gross loans   1,101,476    1,111,723 
Net deferred loan fees and loans in process   886    (872)
Allowance for credit losses   (12,657)   (12,458)
Loans, net  $1,089,705   $1,098,393 
Schedule of Allowance for Credit Losses on Financing Receivables

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:

 

(Dollars in thousands)  One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Agriculture loans   Municipal loans   Consumer loans   Total 
   Three months and six months ended June 30, 2026 
(Dollars in thousands)  One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Agriculture loans   Municipal loans   Consumer loans   Total 
                                 
Allowance for credit losses:                                        
Balance at April 1, 2026  $2,185   $100   $5,832   $3,042   $1,210   $44   $196   $12,609 
Charge-offs   -    -    -    (737)   -    -    (88)   (825)
Recoveries   -    -    -    341    -    -    32    373 
Provision for credit losses   (78)   28    244    224    30    -    52    500 
Balance at June 30, 2026  $2,107   $128   $6,076   $2,870   $1,240   $44   $192   $12,657 
                                         
Allowance for credit losses:                                        
Balance at January 1, 2026  $2,001   $111   $5,680   $3,125   $1,305   $44   $192   $12,458 
Charge-offs   -    -    -    (1,063)   -    -    (156)   (1,219)
Recoveries   -    -    -    353    -    6    59    418 
Provision for credit losses   106    17   396    455    (65)   (6)   97    1,000 
Balance at June 30, 2026  $2,107   $128   $6,076   $2,870   $1,240   $44   $192   $12,657 

 

   Three months and six months ended June 30, 2025 
(Dollars in thousands)  One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Agriculture loans   Municipal loans   Consumer loans   Total 
                                 
Allowance for credit losses:                                        
Balance at April 1, 2025  $1,780   $149   $4,694   $4,689   $1,248   $47   $195   $12,802 
Charge-offs   -    -    -    -    -    -    (103)   (103)
Recoveries   -    -    -    5    -    -    58    63 
Provision for credit losses   8    (18)   382    589    19    (2)   22    1,000 
Balance at June 30, 2025  $1,788   $131   $5,076   $5,283   $1,267   $45   $172   $13,762 

 

 

(Dollars in thousands)  One-to-four family residential real estate loans   Construction and land loans   Commercial real estate loans   Commercial loans   Agriculture loans   Municipal loans   Consumer loans   Total 
                                 
Allowance for credit losses:                                        
Balance at January 1, 2025  $1,765   $143   $4,506   $4,964   $1,227   $51   $169   $12,825 
Charge-offs   -    -    -    (19)   -    -    (192)   (211)
Recoveries   -    5    -    14    -    6    123    148 
Provision for credit losses   23    (17)   570    324    40    (12)   72    1,000 
Balance at June 30, 2025  $1,788   $131   $5,076   $5,283   $1,267   $45   $172   $13,762 
Schedule of Non-accrual and Loans Past Due Over 89 Days Still Accruing

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

 

   Non-accrual with no allowance for credit loss   Non-accrual with allowance for credit losses   Loans past due over 89 days still accruing 
(Dollars in thousands)  As of June 30, 2026 
   Non-accrual with no allowance for credit loss   Non-accrual with allowance for credit losses   Loans past due over 89 days still accruing 
             
One-to-four family residential real estate loans  $1,499   $568   $- 
Construction and land loans   186    -    - 
Commercial real estate loans   2,145    189    - 
Commercial loans   3,363    1,067    - 
Agriculture loans   3,969    -    - 
Consumer loans   65    -    - 
Total loans  $11,227   $1,824   $- 

 

(Dollars in thousands)  As of December 31, 2025 
   Non-accrual with no allowance for credit loss   Non-accrual with allowance for credit losses   Loans past due over 89 days still accruing 
             
One-to-four family residential real estate loans  $1,557   $403   $- 
Commercial real estate loans   3,051    231    - 
Commercial loans   2,993    1,704    - 
Agriculture loans   50    5    - 
Total loans  $7,651   $2,343   $- 
Schedule of Amortized Cost Basis and Collateral Type

 

(Dollars in thousands)  As of June 30, 2026
   Loan balance   Collateral Type
        
One-to-four family residential real estate loans  $2,067   First mortgage on residential real estate
Construction and land loans   186   First mortgage on residential or commercial real estate
Commercial real estate loans   2,763   First mortgage on commercial real estate
Commercial loans   4,588   Various business assets including real estate
Agriculture loans   3,969   Crops, livestock, machinery and real estate
Consumer loans   65   First mortgage on residential real estate
Total loans  $13,638    

 

(Dollars in thousands)  As of December 31, 2025
   Loan balance   Collateral Type
        
One-to-four family residential real estate loans  $1,959   First mortgage on residential real estate
Construction and land loans   186   First mortgage on residential or commercial real estate
Commercial real estate loans   4,445   First mortgage on commercial real estate
Commercial loans   4,834   Various business asset including real estate
Agriculture loans   55   Crops, livestock, machinery and real estate
Total loans  $11,479    
Schedule of Past Due Financing Receivables

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

 

   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
(Dollars in thousands)  As of June 30, 2026 
   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
                             
One-to-four family residential real estate loans  $1,883   $331   $-   $2,214   $2,067   $4,281   $359,990 
Construction and land loans   239    53    -    292    186    478    22,880 
Commercial real estate loans   430    165    -    595    2,334    2,929    404,827 
Commercial loans   1,154    1,837    -    2,991    4,430    7,421    170,483 
Agriculture loans   100    -    -    100    3,969    4,069    83,986 
Municipal loans   -    -    -    -    -    -    6,715 
Consumer loans   77    13    -    90    65    155    33,262 
Total  $3,883   $2,399   $-   $6,282   $13,051   $19,333   $1,082,143 
                                    
Percent of gross loans   0.35%   0.22%   0.00%   0.57%   1.18%   1.76%   98.24%

 

 

(Dollars in thousands)  As of December 31, 2025 
   30-59 days delinquent and accruing   60-89 days delinquent and accruing   90 days or more delinquent and accruing   Total past due loans accruing   Non-accrual loans   Total past due and non-accrual loans   Total loans not past due 
                             
One-to-four family residential real estate loans  $152   $968   $-   $1,120   $1,960   $3,080   $372,219 
Construction and land loans   299    -    -    299    -    299    20,232 
Commercial real estate loans   435    199    -    634    3,282    3,916    390,407 
Commercial loans   1,977    20    -    1,997    4,697    6,694    171,507 
Agriculture loans   119    53    -    172    55    227    102,602 
Municipal loans   -    -    -    -    -    -    6,874 
Consumer loans   20    32    -    52    -    52    33,614 
Total  $3,002   $1,272   $-   $4,274   $9,994   $14,268   $1,097,455 
                                    
Percent of gross loans   0.27%   0.11%   0.00%   0.38%   0.90%   1.28%   98.72%
Schedule of Loans by Risk Category by Type and Year of Origination

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

 

   2026   2025   2024   2023   2022   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
(Dollars in thousands)  As of June 30, 2026 
   2026   2025   2024   2023   2022   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
                                     
One-to-four family residential real estate loans                                             
Nonclassified  $15,445   $67,058   $70,273   $70,670   $61,001   $71,345   $6,026   $247   $362,065 
Classified   -    461    -    -    1,186    245    -    314    2,206 
Total  $15,445   $67,519   $70,273   $70,670   $62,187   $71,590   $6,026   $561   $364,271 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Construction and land loans                                             
Nonclassified  $6,401   $8,649   $620   $2,716   $1,732   $2,953   $101   $-   $23,172 
Classified   -    -    -    -    -    186    -    -    186 
Total  $6,401   $8,649   $620   $2,716   $1,732   $3,139   $101   $-   $23,358 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial real estate loans                                             
Nonclassified  $23,960   $91,234   $53,904   $56,479   $45,352   $127,478   $2,811   $-    401,218 
Classified   -    821    1,292    -    264    4,161    -    -    6,538 
Total  $23,960   $92,055   $55,196   $56,479   $45,616   $131,639   $2,811   $-   $407,756 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial loans                                             
Nonclassified  $26,218   $21,685   $22,719   $13,258   $13,137   $10,268   $57,572   $408   $165,265 
Classified   3,002    578    19    1,669    826    2,867    3,522    156    12,639 
Total  $29,220   $22,263   $22,738   $14,927   $13,963   $13,135   $61,094   $564   $177,904 
Gross charge-offs  $-   $282   $184   $-   $213   $384   $-   $-   $1,063 
Agriculture loans                                             
Nonclassified  $10,875   $9,160   $8,171   $2,175   $3,536   $10,101   $39,772   $195   $83,985 
Classified   -    -    1,529    -    1,208    100    1,233    -    4,070 
Total  $10,875   $9,160   $9,700   $2,175   $4,744   $10,201   $41,005   $195   $88,055 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Municipal loans                                             
Nonclassified  $-   $-   $-   $5,565   $28   $1,122   $-   $-   $6,715 
Classified   -    -    -    -    -    -    -    -    - 
Total  $-   $-   $-   $5,565   $28   $1,122   $-   $-   $6,715 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Consumer loans                                             
Nonclassified  $3,430   $4,441   $1,446   $629   $190   $2,633   $20,393   $190   $33,352 
Classified   -    -    -    -    -    -    11    54    65 
Total  $3,430   $4,441   $1,446   $629   $190   $2,633   $20,404   $244   $33,417 
Gross charge-offs  $63   $-   $-   $-   $-   $-   $93   $-   $156 
Total loans                                             
Nonclassified  $86,329   $202,227   $157,133   $151,492   $124,976   $225,900   $126,675   $1,040   $1,075,772 
Classified   3,002    1,860    2,840    1,669    3,484    7,559    4,766    524    25,704 
Total  $89,331   $204,087   $159,973   $153,161   $128,460   $233,459   $131,441   $1,564   $1,101,476 
Gross charge-offs for the six months ended June 30, 2026  $63   $282   $184   $-   $213   $384   $93   $-   $1,219 

 

 

   2025   2024   2023   2022   2021   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
(Dollars in thousands)  As of December 31, 2025 
   2025   2024   2023   2022   2021   Prior   Revolving loans amortized cost   Revolving loans converted to term   Total 
                                     
One-to-four family residential real estate loans                                             
Nonclassified  $71,799   $75,648   $75,468   $64,268   $31,989   $47,113   $6,969   $85   $373,339 
Classified   -    154    593    1,027    -    186    -    -    1,960 
Total  $71,799   $75,802   $76,061   $65,295   $31,989   $47,299   $6,969   $85   $375,299 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Construction and land loans                                             
Nonclassified  $7,540   $3,059   $2,778   $1,759   $1,593   $3,516   $100   $-   $20,345 
Classified   -    -    -    -    -    186    -    -    186 
Total  $7,540   $3,059   $2,778   $1,759   $1,593   $3,702   $100   $-   $20,531 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial real estate loans                                             
Nonclassified  $81,382   $55,892   $58,027   $50,673   $49,139   $89,596   $3,382   $26   $388,117 
Classified   231    1,116    -    274    438    4,147    -    -    6,206 
Total  $81,613   $57,008   $58,027   $50,947   $49,577   $93,743   $3,382   $26   $394,323 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Commercial loans                                             
Nonclassified  $31,282   $30,783   $17,183   $16,618   $7,335   $5,522   $54,070   $386   $163,179 
Classified   756    185    1,674    834    -    3,371    8,026    176    15,022 
Total  $32,038   $30,968   $18,857   $17,452   $7,335   $8,893   $62,096   $562   $178,201 
Gross charge-offs  $83   $2,276   $-   $266   $50    -   $-   $-   $2,675 
Agriculture loans                                             
Nonclassified  $14,014   $12,178   $2,370   $3,859   $2,697   $11,547   $51,971   $408   $99,044 
Classified   46    1,424    -    1,276    9    2    1,028    -    3,785 
Total  $14,060   $13,602   $2,370   $5,135   $2,706   $11,549   $52,999   $408   $102,829 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Municipal loans                                             
Nonclassified  $-   $-   $5,552   $48   $-   $1,274   $-   $-   $6,874 
Classified   -    -    -    -    -    -    -    -    - 
Total  $-   $-   $5,552   $48   $-   $1,274   $-   $-   $6,874 
Gross charge-offs  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Consumer loans                                             
Nonclassified  $5,313   $1,632   $2,653   $231   $737   $2,529   $20,412   $159   $33,666 
Classified   -    -    -    -    -    -    -    -    - 
Total  $5,313   $1,632   $2,653   $231   $737   $2,529   $20,412   $159   $33,666 
Gross charge-offs  $375   $-   $-    -   $-   $-   $-   $-   $375 
Total loans                                             
Nonclassified  $211,330   $179,192   $164,031   $137,456   $93,490   $161,097   $136,904   $1,064   $1,084,564 
Classified   1,033    2,879    2,267    3,411    447    7,892    9,054    176    27,159 
Total  $212,363   $182,071   $166,298   $140,867   $93,937   $168,989   $145,958   $1,240   $1,111,723 
Gross charge-offs for the year ended December 31, 2025  $458   $2,276   $-   $266   $50   $-   $-   $-   $3,050 
Schedule of Allowance for Credit Losses Related to Unfunded Loan Commitments

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

 

   2026   2025   2026   2025 
   Three months ended   Six months ended 
(dollars in thousands)  June 30,   June 30, 
   2026   2025   2026   2025 
Balance at beginning of period  $220    150   $150    150 
Provision for credit losses   -    -    70    - 
Balance at end of period  $220   $150   $220   $150 
Schedule of Modifications to Borrowers Experiencing Financial Difficulty

 

   As of June 30, 2026
   Amortized cost basis   % of loan class total   Financial effect
Term extension:             
Commercial  $1,669    0.9%  Extension of existing loan

 

   As of June 30, 2025
   Amortized cost basis   % of loan class total   Financial effect
Term extension:             
Commercial  $277    0.1%  Renewal of existing loan