The composition of the loan portfolio by major loan classifications at June 30, 2026 and December 31, 2025, stated at their face amount, net of deferred fees and costs and discounts, including fair value marks, appears below (dollars in thousands). The Company has elected to exclude accrued interest receivable, totaling $4.7 million and $4.8 million as of June 30, 2026 and December 31, 2025, respectively, from the amortized cost basis of loans.


	June 30,			December 31,
	2026			2025
Commercial loans	$	258,975		$	265,393
Real estate construction and land		33,111			35,000
1-4 family residential mortgages		300,768			297,589
Commercial mortgages		616,641			613,443
Consumer loans		24,485			26,152
Total loans		1,233,980			1,237,577
Less: Allowance for credit losses		(8,124	)		(8,270	)
Net loans	$	1,225,856		$	1,229,307

The balances in the table above include unamortized premiums and net deferred loan costs and fees. As of June 30, 2026 and December 31, 2025, unamortized premiums from purchases of loans (excluding loans acquired during the Merger) were $10.9 million, and $11.6 million, respectively, due primarily to purchases of government-guaranteed loans. Net deferred loan fees net of costs totaled $2.9 million as of June 30, 2026 and December 31, 2025.

Consumer loans include $62 thousand and $82 thousand of demand deposit overdrafts as of June 30, 2026 and December 31, 2025, respectively.

Loans acquired in business combinations are recorded in the consolidated balance sheets at fair value at the acquisition date under the acquisition method of accounting. The fair value mark as of the Effective Date was $23.1 million. The table above includes a remaining net fair value mark of $3.9 million and $4.8 million as of June 30, 2026 and December 31, 2025, respectively, on the Acquired Loans.

The following table shows the aging of the Company's loan portfolio, by class, at June 30, 2026 (dollars in thousands):


	30-59 Days		60-89 Days		90 Days or More Past Due and Still Accruing		Nonaccrual Loans		Current Loans		Total Loans

Commercial loans	$	4,784	$	3,236	$	3,626	$	-	$	247,329	$	258,975
Real estate construction and land		-		-		-		-		33,111		33,111
1-4 family residential mortgages		579		-		-		2,099		298,090		300,768
Commercial mortgages		239		452		-		-		615,950		616,641
Consumer loans		82		70		66		-		24,267		24,485
Total Loans	$	5,684	$	3,758	$	3,692	$	2,099	$	1,218,747	$	1,233,980

The following table shows the aging of the Company's loan portfolio, by class, at December 31, 2025 (dollars in thousands):


	30-59 Days		60-89 Days		90 Days or More Past Due and Still Accruing		Nonaccrual Loans		Current Loans		Total Loans

Commercial loans	$	3,103	$	2,882	$	6,565	$	-	$	252,843	$	265,393
Real estate construction and land		-		-		-		-		35,000		35,000
1-4 family residential mortgages		256		221		391		2,198		294,523		297,589
Commercial mortgages		113		-		-		-		613,330		613,443
Consumer loans		162		73		86		-		25,831		26,152
Total Loans	$	3,634	$	3,176	$	7,042	$	2,198	$	1,221,527	$	1,237,577

The following tables show the Company's amortized cost basis of loans on nonaccrual status as of June 30, 2026 and December 31, 2025 (dollars in thousands). All nonaccrual loans are evaluated for an ACL on an individual basis. As of June 30, 2026 and December 31, 2025, no nonaccrual loans required an ACL.


	June 30, 2026
	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans
Commercial loans	$	-	$	-	$	-
Real estate construction and land		-		-		-
1-4 family residential mortgages		2,099		-		2,099
Commercial mortgages		-		-		-
Consumer loans		-		-		-
Total Nonaccrual Loans	$	2,099	$	-	$	2,099


	December 31, 2025
	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans
Commercial loans	$	-	$	-	$	-
Real estate construction and land		-		-		-
1-4 family residential mortgages		2,198		-		2,198
Commercial mortgages		-		-		-
Consumer loans		-		-		-
Total Nonaccrual Loans	$	2,198	$	-	$	2,198

From time to time, the Company modifies loans to borrowers who are experiencing financial difficulties by providing term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the ACL due to the measurement methodologies used in its estimate, the ACL is typically not adjusted upon modification. For the three months ended June 30, 2026 and 2025, and the six months ended June 30, 2026 and 2025 there were no loans that were modified to borrowers who were experiencing financial difficulty.

The Company closely monitors the performance of all modified loans to understand the effectiveness of its modification efforts. Upon determination, if applicable, that all or a portion of a modified loan is uncollectible, that amount is charged against the ACL. During the three months ended June 30, 2026 and 2025, and the six months ended June 30, 2026 and 2025, no loans which had been previously modified were considered by management to be in default of the terms of their modification. There were no loans secured by 1-4 family properties in foreclosure as of June 30, 2026 or December 31, 2025.