v3.26.1
Loans and Allowance for Credit Losses - Loans
 6 Months Ended
Jun. 30, 2026
Allowance for Credit Loss [Abstract]  
Loans and Allowance for Credit Losses - Loans

Note 3. Loans and Allowance for Credit Losses - Loans

Loans Held for Sale

Loans held for sale consisted of commercial real estate and commercial and industrial loans as of both June 30, 2026 and December 31, 2025. The balance of unguaranteed held for sale loans to be retained are reported as held for investment. The principal balances of loans held for sale are listed below as of the dates indicated:

 

(Dollars in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Gross loan balances

 

$

67,918

 

 

$

61,027

 

Less: Unguaranteed portions to be retained

 

 

17,070

 

 

 

15,018

 

Amounts held for sale, net

 

$

50,848

 

 

$

46,009

 

 

Loans Held for Investment

The amortized cost of loans held for investment are listed below. In accordance with ASC 326, GBank has segregated its held for investment loan portfolio into segments characterized by similar risk characteristics, primarily the collateral supporting the loan, as reflected in the table below as of the dates indicated.

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Commercial and industrial

 

$

80,766

 

 

$

80,216

 

Commercial real estate - non-owner occupied

 

 

849,634

 

 

 

750,565

 

Commercial real estate - owner occupied

 

 

88,216

 

 

 

94,576

 

Construction and land development

 

 

2,254

 

 

 

2,288

 

Multifamily

 

 

18,836

 

 

 

18,950

 

Single Family Sr. Lien

 

 

720

 

 

 

726

 

Single Family Jr. Lien

 

 

190

 

 

 

131

 

Single Family HELOC

 

 

375

 

 

 

459

 

Consumer

 

 

6,361

 

 

 

11,358

 

Loans, net

 

 

1,047,352

 

 

 

959,269

 

Allowance for credit losses

 

 

(12,418

)

 

 

(9,890

)

Loans, net of allowance

 

$

1,034,934

 

 

$

949,379

 

 

Accrued interest receivable is not included in the amortized cost basis of the Company’s loans. Accrued interest receivable for loans totaled $8.5 million and $7.5 million as of June 30, 2026 and December 31, 2025, respectively, and was reported in other assets on the Company’s consolidated balance sheets.

Deferred loan costs of $9.5 million and $10.0 million are included in the balance of net loans as of June 30, 2026 and December 31, 2025, respectively. Loan costs represent the costs incurred to originate the loans, net of fees paid by the borrower, which are measured and recorded at the date the loan is originated. Loan discount of $12.5 million and $10.9 million are included in the balance of net loans as of June 30, 2026 and December 31, 2025, respectively. The discount represents the discount on the retained portion of the government guaranteed loans and is measured at the date the guaranteed portion of the loan is sold, based on the relative fair value of the retained loan as calculated by an independent consulting firm. Loan costs and discount are amortized over the life of the loan and are recorded as an adjustment to interest income on the loan.

As of June 30, 2026 and December 31, 2025, Company loans with a carrying value of $652.2 million and $658.9 million, respectively, were pledged as collateral for potential borrowing purposes (see Note 7).

The portion of loans guaranteed by the U.S. government and held for investment totaled $175.0 million and $183.7 million as of June 30, 2026 and December 31, 2025, respectively, and are included in the commercial and industrial, commercial real estate - non-owner occupied, and commercial real estate - owner occupied loan segments.

Past Due and Non-accrual Loans

 

The performance and credit quality of the loan portfolio is monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. A loan’s past due or delinquent status is based on the contractual term specified in each loan agreement. The segments of the loan portfolio summarized by the past due status are summarized as follows as of the dates indicated:

 

 

June 30, 2026

 

(Dollars in thousands)

 

 

 

 

 

 

 

Past Due 90

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

30-59 Days

 

 

60-89 Days

 

 

Days or More

 

 

 

 

 

Past Due and

 

 

 

 

 

 

 

 

 

Past Due

 

 

Past Due

 

 

and Accruing

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Current

 

 

Total

 

Commercial and industrial

 

$

-

 

 

$

-

 

 

$

-

 

 

$

4,713

 

 

$

4,713

 

 

$

76,053

 

 

$

80,766

 

Commercial real estate - non-owner occupied

 

 

4,625

 

 

 

-

 

 

 

-

 

 

 

38,996

 

 

 

43,621

 

 

 

806,013

 

 

 

849,634

 

Commercial real estate - owner occupied

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,939

 

 

 

7,939

 

 

 

80,277

 

 

 

88,216

 

Construction and land development

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,254

 

 

 

2,254

 

Multifamily

 

 

7,265

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,265

 

 

 

11,571

 

 

 

18,836

 

Single Family Sr. Lien

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

720

 

 

 

720

 

Single Family Jr. Lien

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

190

 

 

 

190

 

Single Family HELOC

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

375

 

 

 

375

 

Consumer

 

 

158

 

 

 

154

 

 

 

868

 

 

 

-

 

 

 

1,180

 

 

 

5,181

 

 

 

6,361

 

Total

 

$

12,048

 

 

$

154

 

 

$

868

 

 

$

51,648

 

 

$

64,718

 

 

$

982,634

 

 

$

1,047,352

 

 

 

 

December 31, 2025

 

(Dollars in thousands)

 

 

 

 

 

 

 

Past Due 90

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

30-59 Days

 

 

60-89 Days

 

 

Days or More

 

 

 

 

 

Past Due and

 

 

 

 

 

 

 

 

 

Past Due

 

 

Past Due

 

 

and Accruing

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Current

 

 

Total

 

Commercial and industrial

 

$

344

 

 

$

-

 

 

$

-

 

 

$

372

 

 

$

716

 

 

$

79,500

 

 

$

80,216

 

Commercial real estate - non-owner occupied

 

 

1,008

 

 

 

3,622

 

 

 

-

 

 

 

30,789

 

 

 

35,419

 

 

 

715,146

 

 

 

750,565

 

Commercial real estate - owner occupied

 

 

3,148

 

 

 

-

 

 

 

-

 

 

 

980

 

 

 

4,128

 

 

 

90,448

 

 

 

94,576

 

Construction and land development

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,288

 

 

 

2,288

 

Multifamily

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,950

 

 

 

18,950

 

Single Family Sr. Lien

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

726

 

 

 

726

 

Single Family Jr. Lien

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

131

 

 

 

131

 

Single Family HELOC

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

459

 

 

 

459

 

Consumer

 

 

908

 

 

 

813

 

 

 

854

 

 

 

-

 

 

 

2,575

 

 

 

8,783

 

 

 

11,358

 

Total

 

$

5,408

 

 

$

4,435

 

 

$

854

 

 

$

32,141

 

 

$

42,838

 

 

$

916,431

 

 

$

959,269

 

 

There were no residential loans for which formal foreclosure proceedings were in place at June 30, 2026 or December 31, 2025.

 

Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due. No interest income was recognized on nonaccrual loans during the three or six months ended June 30, 2026 or 2025.

 

Credit Quality Indicators

Management reviews the Company’s loan portfolio at least monthly to determine whether any assets require classification in accordance with the Company’s policy and applicable regulations. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements. The Company’s internal credit risk-grading system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

•
Pass: Loans that are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. Loans in this grade are further broken down into sub-grades ranging from A to E in order to provide for additional granularity in the analyses that are performed.
•
Special Mention: Loans where a potential weakness or risk exists that could cause a more serious problem if not corrected.
•
Substandard: Loans that have a well-defined weakness based on objective evidence and can be characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
•
Doubtful: Loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make full collection or liquidation highly questionable and improbable, based upon the existing circumstances.
•
Loss: Loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

The following tables present the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of June 30, 2026 and December 31, 2025. Current period originations may include modifications, extensions and renewals. The Company had no loans rated doubtful or loss as of June 30, 2026 and December 31, 2025.

 

 

As of and for the six months ended June 30, 2026

Term Loans Amortized Cost Basis by Origination Year

 

 

 

Revolving Loans

 

 

 

 

(Dollars in thousands)

2026

 

 

2025

 

 

 

2024

 

 

 

2023

 

 

 

2022

 

 

 

Prior

 

 

 

Amortized Cost Basis

 

 

Total

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

5,129

 

 

$

32,565

 

 

 

$

8,169

 

 

 

$

4,971

 

 

 

$

3,855

 

 

 

$

1,609

 

 

 

$

19,177

 

 

$

75,475

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

146

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

146

 

Substandard

 

-

 

 

 

722

 

 

 

 

1,740

 

 

 

 

2,462

 

 

 

 

221

 

 

 

 

-

 

 

 

 

-

 

 

 

5,145

 

Total

$

5,129

 

 

$

33,287

 

 

 

$

9,909

 

 

 

$

7,579

 

 

 

$

4,076

 

 

 

$

1,609

 

 

 

$

19,177

 

 

$

80,766

 

Current period gross charge offs

$

-

 

 

$

118

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

$

118

 

Current period gross recoveries

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

$

-

 

Commercial real estate - non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

120,186

 

 

$

170,159

 

 

 

$

173,654

 

 

 

$

136,628

 

 

 

$

69,931

 

 

 

$

135,388

 

 

 

$

-

 

 

$

805,946

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

647

 

 

 

 

1,024

 

 

 

 

-

 

 

 

1,671

 

Substandard

 

-

 

 

 

1,442

 

 

 

 

764

 

 

 

 

6,219

 

 

 

 

8,033

 

 

 

 

25,559

 

 

 

 

-

 

 

 

42,017

 

Total

$

120,186

 

 

$

171,601

 

 

 

$

174,418

 

 

 

$

142,847

 

 

 

$

78,611

 

 

 

$

161,971

 

 

 

$

-

 

 

$

849,634

 

Current period gross charge offs

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

1,014

 

 

 

$

29

 

 

 

$

-

 

 

$

1,043

 

Current period gross recoveries

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

2

 

 

 

$

-

 

 

$

2

 

Commercial real estate - owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

3,859

 

 

$

29,016

 

 

 

$

2,126

 

 

 

$

7,372

 

 

 

$

11,692

 

 

 

$

24,017

 

 

 

$

-

 

 

$

78,082

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

1,381

 

 

 

 

1,770

 

 

 

 

-

 

 

 

 

6,983

 

 

 

 

-

 

 

 

10,134

 

Total

$

3,859

 

 

$

29,016

 

 

 

$

3,507

 

 

 

$

9,142

 

 

 

$

11,692

 

 

 

$

31,000

 

 

 

$

-

 

 

$

88,216

 

Current period gross charge offs

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

$

-

 

Construction and land development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

1,865

 

 

 

$

-

 

 

 

$

-

 

 

 

$

389

 

 

 

$

-

 

 

 

$

-

 

 

$

2,254

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

1,865

 

 

 

$

-

 

 

 

$

-

 

 

 

$

389

 

 

 

$

-

 

 

 

$

-

 

 

$

2,254

 

Multifamily

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

18,836

 

 

 

$

-

 

 

$

18,836

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

18,836

 

 

 

$

-

 

 

$

18,836

 

Single family Sr. Lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

162

 

 

 

$

558

 

 

$

720

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

162

 

 

 

$

558

 

 

$

720

 

Single family Jr. Lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

190

 

 

$

190

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

190

 

 

$

190

 

Single family HELOC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

375

 

 

$

375

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

375

 

 

$

375

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

6,361

 

 

$

6,361

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

6,361

 

 

$

6,361

 

Current period gross charge offs

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

1,469

 

 

$

1,469

 

Current period gross recoveries

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

4

 

 

$

4

 

Total Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

129,174

 

 

$

233,605

 

 

-

 

$

183,949

 

 

-

 

$

148,971

 

 

 

$

85,867

 

 

-

 

$

180,012

 

 

-

 

$

26,661

 

 

$

988,239

 

Special mention

 

-

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

146

 

 

-

 

 

647

 

 

-

 

 

1,024

 

 

-

 

 

-

 

 

 

1,817

 

Substandard

 

-

 

 

 

2,164

 

 

-

 

 

3,885

 

 

-

 

 

10,451

 

 

-

 

 

8,254

 

 

-

 

 

32,542

 

 

-

 

 

-

 

 

 

57,296

 

Total

$

129,174

 

 

$

235,769

 

 

 

$

187,834

 

 

 

$

159,568

 

 

 

$

94,768

 

 

 

$

213,578

 

 

 

$

26,661

 

 

$

1,047,352

 

 

 

As of December 31, 2025

Term Loans Amortized Cost Basis by Origination Year

 

 

 

Revolving Loans

 

 

 

 

(Dollars in thousands)

2025

 

 

2024

 

 

 

2023

 

 

 

2021

 

 

 

2020

 

 

 

Prior

 

 

 

Amortized Cost Basis

 

 

Total

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

34,205

 

 

$

9,660

 

 

 

$

6,291

 

 

 

$

4,682

 

 

 

$

391

 

 

 

$

1,677

 

 

 

$

22,137

 

 

$

79,043

 

Special mention

 

-

 

 

 

311

 

 

 

 

490

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

801

 

Substandard

 

372

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

372

 

Total

$

34,577

 

 

$

9,971

 

 

 

$

6,781

 

 

 

$

4,682

 

 

 

$

391

 

 

 

$

1,677

 

 

 

$

22,137

 

 

$

80,216

 

Current period gross charge offs

$

124

 

 

$

241

 

 

 

$

116

 

 

 

$

46

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

$

527

 

Current period gross recoveries

$

-

 

 

$

16

 

 

 

$

-

 

 

 

$

18

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

$

34

 

Commercial real estate - non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

169,580

 

 

$

169,501

 

 

 

$

147,399

 

 

 

$

76,061

 

 

 

$

52,361

 

 

 

$

95,284

 

 

 

$

-

 

 

$

710,186

 

Special mention

 

-

 

 

 

764

 

 

 

 

-

 

 

 

 

650

 

 

 

 

238

 

 

 

 

1,671

 

 

 

 

-

 

 

 

3,323

 

Substandard

 

-

 

 

 

-

 

 

 

 

3,951

 

 

 

 

12,489

 

 

 

 

9,297

 

 

 

 

11,319

 

 

 

 

-

 

 

 

37,056

 

Total

$

169,580

 

 

$

170,265

 

 

 

$

151,350

 

 

 

$

89,200

 

 

 

$

61,896

 

 

 

$

108,274

 

 

 

$

-

 

 

$

750,565

 

Current period gross charge offs

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

649

 

 

 

$

741

 

 

 

$

620

 

 

 

$

-

 

 

$

2,010

 

Current period gross recoveries

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

24

 

 

 

$

80

 

 

 

$

-

 

 

$

104

 

Commercial real estate - owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

29,330

 

 

$

3,076

 

 

 

$

9,416

 

 

 

$

12,672

 

 

 

$

18,435

 

 

 

$

17,540

 

 

 

$

-

 

 

$

90,469

 

Special mention

 

-

 

 

 

-

 

 

 

 

3,127

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

3,127

 

Substandard

 

-

 

 

 

486

 

 

 

 

494

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

980

 

Total

$

29,330

 

 

$

3,562

 

 

 

$

13,037

 

 

 

$

12,672

 

 

 

$

18,435

 

 

 

$

17,540

 

 

 

$

-

 

 

$

94,576

 

Current period gross charge offs

$

-

 

 

$

138

 

 

 

$

-

 

 

 

$

-

 

 

 

$

174

 

 

 

$

-

 

 

 

$

-

 

 

$

312

 

Construction and land development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,898

 

 

$

-

 

 

 

$

-

 

 

 

$

390

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

$

2,288

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

1,898

 

 

$

-

 

 

 

$

-

 

 

 

$

390

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

$

2,288

 

Multifamily

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

18,950

 

 

 

$

-

 

 

$

18,950

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

18,950

 

 

 

$

-

 

 

$

18,950

 

Single family Sr. Lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

164

 

 

 

$

562

 

 

$

726

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

164

 

 

 

$

562

 

 

$

726

 

Single family Jr. Lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

131

 

 

$

131

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

131

 

 

$

131

 

Single family HELOC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

459

 

 

$

459

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

459

 

 

$

459

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

10,504

 

 

$

10,504

 

Special mention

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

854

 

 

 

854

 

Total

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

11,358

 

 

$

11,358

 

Current period gross charge offs

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

384

 

 

$

384

 

Current period gross recoveries

$

-

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

-

 

 

 

$

5

 

 

$

5

 

Total Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

235,013

 

 

$

182,237

 

 

-

 

$

163,106

 

 

-

 

$

93,805

 

 

 

$

71,187

 

 

-

 

$

133,615

 

 

-

 

$

33,793

 

 

$

912,756

 

Special mention

 

-

 

 

 

1,075

 

 

-

 

 

3,617

 

 

-

 

 

650

 

 

-

 

 

238

 

 

-

 

 

1,671

 

 

-

 

 

-

 

 

 

7,251

 

Substandard

 

372

 

 

 

486

 

 

-

 

 

4,445

 

 

-

 

 

12,489

 

 

-

 

 

9,297

 

 

-

 

 

11,319

 

 

-

 

 

854

 

 

 

39,262

 

Total

$

235,385

 

 

$

183,798

 

 

 

$

171,168

 

 

 

$

106,944

 

 

 

$

80,722

 

 

 

$

146,605

 

 

 

$

34,647

 

 

$

959,269

 

 

Collateral Dependent Loans

A loan is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Collateral-dependent loans do not share risk characteristics with other loans and therefore are individually evaluated for purposes of calculating the allowance for credit losses. The Company has elected to apply the practical expedient under ASC 326 which permits an entity to estimate credit losses based on the fair value of collateral when either applies: (i) the borrower is experiencing financial difficulty, or (ii) repayment is expected to be provided substantially through the sale or operating of the collateral. Fair value estimates for collateral dependent loans are generally based on the current market value or the “as is” value of the collateral derived from recently received and reviewed appraisals from third-party providers. If repayment is dependent on the sale of the collateral, then the fair value used to measure the allowance for credit losses is adjusted for the costs to sell.

The following tables present the amortized cost basis of collateral-dependent loans by collateral type as of the dates indicated:

 

 

 

Types of Collateral

 

June 30, 2026

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

Shopping

 

 

Business

 

 

Residential

 

 

 

 

 

 

 

 

 

Hotel / Motel

 

 

Center

 

 

Assets

 

 

Real Estate

 

 

Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

-

 

 

$

-

 

 

$

3,337

 

 

 

1,376

 

 

$

-

 

 

$

4,713

 

Commercial real estate - non-owner
   occupied

 

 

38,996

 

 

 

-

 

 

 

-

 

 

 

 

 

 

-

 

 

 

38,996

 

Commercial real estate - owner occupied

 

 

-

 

 

 

470

 

 

 

-

 

 

 

6,772

 

 

 

697

 

 

 

7,939

 

 

 

$

38,996

 

 

$

470

 

 

$

3,337

 

 

$

8,148

 

 

$

697

 

 

$

51,648

 

 

 

 

Types of Collateral

 

December 31, 2025

 

 

 

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

Shopping

 

 

Business

 

 

Residential

 

 

 

 

 

 

 

 

 

Hotel / Motel

 

 

Center

 

 

Assets

 

 

Real Estate

 

 

Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

-

 

 

$

-

 

 

$

372

 

 

$

-

 

 

$

-

 

 

$

372

 

Commercial real estate - non-owner
   occupied

 

 

27,200

 

 

 

-

 

 

 

3,589

 

 

 

-

 

 

 

-

 

 

 

30,789

 

Commercial real estate - owner occupied

 

 

494

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

486

 

 

 

980

 

 

$

27,694

 

 

$

-

 

 

$

3,961

 

 

$

-

 

 

$

486

 

 

$

32,141

 

 

The following tables present the amortized cost basis of collateral-dependent loans by loan portfolio segment and the related allowance assigned as of the dates indicated:

 

June 30, 2026

 

Collateral Dependent Loans

 

 

 

 

(Dollars in thousands)

 

With a Related

 

 

Without a Related

 

 

Related

 

 

 

Allowance

 

 

Allowance

 

 

Allowance

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

3,991

 

 

$

722

 

 

$

1,138

 

Commercial real estate - non-owner occupied

 

 

15,808

 

 

 

23,188

 

 

 

1,287

 

Commercial real estate - owner occupied

 

 

7,241

 

 

 

698

 

 

 

1,099

 

 

December 31, 2025

 

Collateral Dependent Loans

 

 

 

 

(Dollars in thousands)

 

With a Related

 

 

Without a Related

 

 

Related

 

 

 

Allowance

 

 

Allowance

 

 

Allowance

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

-

 

 

$

372

 

 

$

-

 

Commercial real estate - non-owner occupied

 

 

14,034

 

 

 

16,755

 

 

 

1,161

 

Commercial real estate - owner occupied

 

 

494

 

 

 

486

 

 

 

26

 

 

Allowance for Credit Losses

The level of the allowance for credit losses reflects management’s continuing evaluation of product and industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions, and unidentified losses expected in the current loan portfolio. Portions of the allowance for credit losses may be allocated for specific credits; however, the entire allowance for credit losses is available for any credit that, in management’s judgment, should be charged off.

 

The following tables present, by portfolio segment, the changes in the allowance for credit losses for the three- and six-month periods indicated:

 

 

 

Allowance for Credit Losses

 

 

 

Balance,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance,

 

(Dollars in thousands)

 

April 1

 

 

Provision for

 

 

 

Amounts

 

 

 

Amounts

 

 

 

June 30,

 

 

 

2026

 

 

Credit Losses

 

 

 

Charged Off

 

 

 

Recovered

 

 

 

2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,132

 

 

$

466

 

 

-

 

$

(118

)

 

-

 

$

-

 

 

-

 

$

1,480

 

Commercial real estate - non-owner
   occupied

 

 

8,556

 

 

 

1,642

 

 

-

 

 

(1,043

)

 

-

 

 

2

 

 

-

 

 

9,157

 

Commercial real estate - owner occupied

 

 

624

 

 

 

(50

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

574

 

Construction and land development

 

 

149

 

 

 

(17

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

132

 

Multifamily

 

 

36

 

 

 

20

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

56

 

Single Family Sr. Lien

 

 

2

 

 

 

(1

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1

 

Single Family Jr. Lien

 

 

-

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Single Family HELOC

 

 

4

 

 

 

(2

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2

 

Consumer

 

 

252

 

 

 

771

 

 

-

 

 

(9

)

 

-

 

 

2

 

 

-

 

 

1,016

 

 

 

$

10,755

 

 

$

2,829

 

 

 

$

(1,170

)

 

 

$

4

 

 

 

$

12,418

 

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance,

 

 

 

 

 

 

 

 

 

 

 

Balance,

 

(Dollars in thousands)

 

January 1,

 

 

Provision for

 

 

Amounts

 

 

Amounts

 

 

June 30,

 

 

 

2026

 

 

Credit Losses

 

 

Charged Off

 

 

Recovered

 

 

2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

378

 

 

$

1,220

 

 

$

(118

)

 

$

-

 

 

$

1,480

 

Commercial real estate - non-owner
   occupied

 

 

7,214

 

 

 

2,984

 

 

 

(1,043

)

 

 

2

 

 

 

9,157

 

Commercial real estate - owner occupied

 

 

628

 

 

 

(54

)

 

 

-

 

 

 

-

 

 

 

574

 

Construction and land development

 

 

164

 

 

 

(32

)

 

 

-

 

 

 

-

 

 

 

132

 

Multifamily

 

 

42

 

 

 

14

 

 

 

-

 

 

 

-

 

 

 

56

 

Single Family Sr. Lien

 

 

2

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

1

 

Single Family Jr. Lien

 

 

1

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

Single Family HELOC

 

 

4

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

2

 

Consumer

 

 

1,457

 

 

 

1,024

 

 

 

(1,469

)

 

 

4

 

 

 

1,016

 

 

 

$

9,890

 

 

$

5,152

 

 

$

(2,630

)

 

$

6

 

 

$

12,418

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance,

 

 

 

 

 

 

 

 

 

 

 

Balance,

 

(Dollars in thousands)

 

April 1,

 

 

Provision for

 

 

Amounts

 

 

Amounts

 

 

June 30,

 

 

 

2025

 

 

Credit Losses

 

 

Charged Off

 

 

Recovered

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

343

 

 

$

22

 

 

$

-

 

 

$

-

 

 

$

365

 

Commercial real estate - non-owner
   occupied

 

 

7,806

 

 

 

728

 

 

 

(912

)

 

 

79

 

 

 

7,701

 

Commercial real estate - owner occupied

 

 

503

 

 

 

175

 

 

 

-

 

 

 

-

 

 

 

678

 

Construction and land development

 

 

48

 

 

 

52

 

 

 

-

 

 

 

-

 

 

 

100

 

Multifamily

 

 

62

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

60

 

Single Family Sr. Lien

 

 

15

 

 

 

(11

)

 

 

-

 

 

 

-

 

 

 

4

 

Single Family Jr. Lien

 

 

9

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

7

 

Single Family HELOC

 

 

6

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

4

 

Consumer

 

 

205

 

 

 

119

 

 

 

(38

)

 

 

-

 

 

 

286

 

 

 

$

8,997

 

 

$

1,079

 

 

$

(950

)

 

$

79

 

 

$

9,205

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance,

 

 

 

 

 

 

 

 

 

 

 

Balance,

 

(Dollars in thousands)

 

January 1,

 

 

Provision for

 

 

Amounts

 

 

Amounts

 

 

June 30,

 

 

 

2025

 

 

Credit Losses

 

 

Charged Off

 

 

Recovered

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

496

 

 

$

32

 

 

$

(163

)

 

$

-

 

 

$

365

 

Commercial real estate - non-owner
   occupied

 

 

7,837

 

 

 

1,320

 

 

 

(1,535

)

 

 

79

 

 

 

7,701

 

Commercial real estate - owner occupied

 

 

537

 

 

 

141

 

 

 

-

 

 

 

-

 

 

 

678

 

Construction and land development

 

 

49

 

 

 

51

 

 

 

-

 

 

 

-

 

 

 

100

 

Multifamily

 

 

39

 

 

 

21

 

 

 

-

 

 

 

-

 

 

 

60

 

Single Family Sr. Lien

 

 

33

 

 

 

(29

)

 

 

-

 

 

 

-

 

 

 

4

 

Single Family Jr. Lien

 

 

14

 

 

 

(7

)

 

 

-

 

 

 

-

 

 

 

7

 

Single Family HELOC

 

 

11

 

 

 

(7

)

 

 

-

 

 

 

-

 

 

 

4

 

Consumer

 

 

98

 

 

 

267

 

 

 

(79

)

 

 

-

 

 

 

286

 

 

 

$

9,114

 

 

$

1,789

 

 

$

(1,777

)

 

$

79

 

 

$

9,205

 

 

 

The Company had gross loan charge offs of $1.2 million during the three months ended June 30, 2026 comprised of commercial and industrial and commercial real estate - non-owner occupied loans. Comparatively, the Company had gross loan chargeoffs of $950 thousand during the three months ended June 30, 2025 comprised of commercial real estate - non-owner occupied, and consumer loans. Gross loan charges offs for six months ended June 30, 2026 and 2025 were $2.6 million and $1.8 million, respectively comprised of commercial and industrial, commercial real estate - non-owner occupied, and consumer loans.

 

Modifications to Borrowers Experiencing Financial Difficulty

The Company may modify certain loans when a borrower is experiencing financial difficulties and the Company grants concessions to the borrower that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses.

The following table presents the amortized cost basis of loans held for investment that were modified during the period for borrowers experiencing financial difficulty by loan portfolio segment:

 

 

 

Amortized Cost Basis at June 30, 2026

 

(Dollars in thousands)

 

 

 

 

 

 

 

Combination:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate

 

 

 

 

 

% of Total Class

 

 

 

Term

 

 

Interest Rate

 

 

Reduction and

 

 

 

 

 

of Financing

 

 

 

Extension

 

 

Reduction

 

 

Term Extension

 

 

Total

 

 

Receivable

 

Commercial real estate - non-owner occupied

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

0.0

%

 

 

 

Amortized Cost Basis at June 30, 2025

 

(Dollars in thousands)

 

 

 

 

 

 

 

Combination:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate

 

 

 

 

 

% of Total Class

 

 

 

Term

 

 

Interest Rate

 

 

Reduction and

 

 

 

 

 

of Financing

 

 

 

Extension

 

 

Reduction

 

 

Term Extension

 

 

Total

 

 

Receivable

 

Commercial real estate - non-owner occupied

 

$

-

 

 

$

-

 

 

$

3,334

 

 

$

3,334

 

 

 

0.5

%

 

The financial effects of the term extensions in the table above added a weighted-average of 5.0 years to the life of the loans, which also reduced the monthly payment amounts for the borrowers.

The performance of these modified loans is monitored for twelve months following the modification. As of June 30, 2026 and 2025, all modified loans were on nonaccrual status and performing under their respective modified terms. The Company had no commitments to lend additional funds to borrowers experiencing financial difficulty whose loan terms were modified.