Loans (Tables)

6 Months Ended

Jun. 30, 2026

Receivables [Abstract]

Summary of Loans

Loans consisted of the following on June 30, 2026 and December 31, 2025:


(Dollars in thousands)		June 30, 2026				December 31, 2025
Commercial and industrial		$	162,593			$	152,657
Commercial real estate			254,178				255,911
Commercial lessors of buildings			126,401				114,010
Construction			56,180				47,982
Consumer mortgage			197,873				193,298
Home equity line of credit			57,992				52,616
Consumer installment			10,147				9,019
Consumer indirect			3,966				4,366
Total loans			869,330				829,859
Allowance for credit losses			(13,528	)			(12,470	)
Deferred loan costs (fees), net			18				(81	)
Net Loans		$	855,820			$	817,308

Summary of Allowance for Credit Losses by Portfolio Segment

The following table details activity in the allowance for credit losses ("ACL") by portfolio segment for the three and six months ended June 30, 2026 and 2025.


(Dollars in thousands)		Beginning ACL Balance				Charge-offs				Recoveries				Provision (Recovery) for Credit Losses				Ending ACL Balance
Three Months Ended June 30, 2026
Commercial and industrial		$	6,918			$	(7	)		$	—			$	536			$	7,447
Commercial real estate			2,529				—				1				(51	)			2,479
Commercial lessors of buildings			1,428				—				—				46				1,474
Construction			549				—				—				61				610
Consumer mortgage			843				—				3				(17	)			829
Home equity line of credit			379				—				—				17				396
Consumer installment			110				(10	)			2				10				112
Consumer indirect			191				(24	)			7				7				181
		$	12,947			$	(41	)		$	13			$	609			$	13,528

Six Months Ended June 30, 2026
Commercial and industrial		$	6,886			$	(7	)		$	—			$	568			$	7,447
Commercial real estate			2,394				—				1				84				2,479
Commercial lessors of buildings			1,314				—				—				160				1,474
Construction			524				—				—				86				610
Consumer mortgage			838				—				5				(14	)			829
Home equity line of credit			227				—				—				169				396
Consumer installment			84				(23	)			5				46				112
Consumer indirect			203				(24	)			8				(6	)			181
		$	12,470			$	(54	)		$	19			$	1,093			$	13,528

Three Months Ended June 30, 2025
Commercial and industrial		$	3,154			$	(42	)		$	—			$	(39	)		$	3,073
Commercial real estate			1,707				(301	)			1				641				2,048
Commercial lessors of buildings			1,240				—				—				(12	)			1,228
Construction			576				—				—				5				581
Consumer mortgage			758				—				—				21				779
Home equity line of credit			193				—				—				12				205
Consumer installment			89				(17	)			3				17				92
Consumer indirect			257				(8	)			2				(6	)			245
		$	7,974			$	(368	)		$	6			$	639			$	8,251

Six Months Ended June 30, 2025
Commercial and industrial		$	2,919			$	(69	)		$	—			$	223			$	3,073
Commercial real estate			1,681				(301	)			1				667				2,048
Commercial lessors of buildings			1,141				—				—				87				1,228
Construction			502				—				—				79				581
Consumer mortgage			812				—				1				(34	)			779
Home equity line of credit			205				—				—				—				205
Consumer installment			92				(25	)			7				18				92
Consumer indirect			243				(8	)			3				7				245
		$	7,595			$	(403	)		$	12			$	1,047			$	8,251

Schedule of Aging of Accruing Past Due and Nonaccrual Loans

The following table presents the classes of the loan portfolio summarized by the past-due status.


(Dollars in thousands)		Current				30-59 Days Past Due				60-89 Days Past Due				90 Days + Past Due				Total Past Due				Total Loans
June 30, 2026
Commercial and industrial		$	162,460			$	133			$	—			$	—			$	133			$	162,593
Commercial real estate			254,178				—				—				—				—				254,178
Commercial lessors of buildings			126,401				—				—				—				—				126,401
Construction			56,180				—				—				—				—				56,180
Consumer mortgage			196,603				906				364				—				1,270				197,873
Home equity line of credit			57,947				—				45				—				45				57,992
Consumer installment			10,135				8				4				—				12				10,147
Consumer indirect			3,922				38				6				—				44				3,966
Total Loans		$	867,826			$	1,085			$	419			$	—			$	1,504			$	869,330

December 31, 2025
Commercial and industrial		$	152,589			$	48			$	20			$	—			$	68			$	152,657
Commercial real estate			255,835				76				—				—				76				255,911
Commercial lessors of buildings			114,010				—				—				—				—				114,010
Construction			47,962				20				—				—				20				47,982
Consumer mortgage			192,673				223				402				—				625				193,298
Home equity line of credit			52,221				320				75				—				395				52,616
Consumer installment			9,002				17				—				—				17				9,019
Consumer indirect			4,318				14				34				—				48				4,366
Total Loans		$	828,610			$	718			$	531			$	—			$	1,249			$	829,859

NOTE 3 – LOANS (CONTINUED)

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing interest as of June 30, 2026 and December 31, 2025:


(Dollars in thousands)		Nonaccrual with no ACL				Nonaccrual with ACL				Total Nonaccrual				Loans Past Due 90 Days or More Still Accruing				Total Nonperforming
June 30, 2026
Commercial and industrial		$	—			$	4,317			$	4,317			$	—			$	4,317
Commercial real estate			—				2,510				2,510				—				2,510
Commercial lessors of buildings			—				—				—				—				—
Construction			—				—				—				—				—
Consumer mortgage			—				331				331				—				331
Home equity line of credit			—				62				62				—				62
Consumer installment			—				25				25				—				25
Consumer indirect			—				42				42				—				42
Total Loans		$	—			$	7,287			$	7,287			$	—			$	7,287

December 31, 2025
Commercial and industrial		$	—			$	9			$	9			$	—			$	9
Commercial real estate			—				161				161				—				161
Commercial lessors of buildings			—				—				—				—				—
Construction			—				—				—				—				—
Consumer mortgage			—				336				336				—				336
Home equity line of credit			—				64				64				—				64
Consumer installment			—				32				32				—				32
Consumer indirect			—				50				50				—				50
Total Loans		$	—			$	652			$	652			$	—			$	652

Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by class of loan:


		Type of Collateral
(Dollars in thousands)		Real Estate				Blanket Liens				Equipment
June 30, 2026
Commercial and industrial		$	6,954		1	$	8,513			$	179
Commercial real estate			22,787		2		—				—
Total collateral dependent loans		$	29,741			$	8,513			$	179

December 31, 2025
Commercial and industrial		$	4,411		1	$	7,078			$	—
Commercial real estate			20,446		2		—				—
Total collateral dependent loans		$	24,857			$	7,078			$	—

1 Balances include $3.5 million USDA guarantee.

2 Balances include $16.4 million USDA guarantee.

Summary of Loans by Credit Quality Indicator

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated loans. Based on the most recent analysis performed, the following tables present the recorded investment in non-homogeneous loans by internal risk rating system as of June 30, 2026 and December 31, 2025:


		Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)		2026				2025				2024				2023				2022				Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term				Total
June 30, 2026
Commercial and industrial:
Pass		$	18,106			$	19,649			$	11,295			$	10,882			$	6,774			$	7,873		$	52,117		$	—			$	126,696
Special mention			25				52				4,448				66				48				22			3,607			—				8,268
Substandard			477				1,242				—				10,368		1		4,069				381			11,092			—				27,629
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	18,608			$	20,943			$	15,743			$	21,316			$	10,891			$	8,276		$	66,816		$	—			$	162,593
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	7			$	—		$	—		$	—			$	7
Commercial real estate:
Pass		$	22,088			$	41,007			$	22,530			$	29,140			$	34,275			$	66,740		$	489		$	—			$	216,269
Special Mention			—				—				1,001				—				658				4,706			—			—				6,365
Substandard			—				—				—				21,930		2		345				9,269			—			—				31,544
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	22,088			$	41,007			$	23,531			$	51,070			$	35,278			$	80,715		$	489		$	—			$	254,178
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Commercial lessors of buildings:
Pass		$	11,672			$	24,649			$	22,129			$	20,267			$	19,557			$	26,762		$	306		$	—			$	125,342
Special Mention			—				—				—				—				—				168			—			—				168
Substandard			—				—				—				—				—				891			—			—				891
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	11,672			$	24,649			$	22,129			$	20,267			$	19,557			$	27,821		$	306		$	—			$	126,401
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Commercial Construction:
Pass		$	6,741			$	10,394			$	17,235			$	1,861			$	7,125			$	1,873		$	999		$	—			$	46,228
Special Mention			—				—				—				—				—				—			—			—				—
Substandard			—				—				—				—				144				—			—			—				144
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	6,741			$	10,394			$	17,235			$	1,861			$	7,269			$	1,873		$	999		$	—			$	46,372
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Total
Pass		$	58,607			$	95,699			$	73,189			$	62,150			$	67,731			$	103,248		$	53,911		$	—			$	514,535
Special Mention			25				52				5,449				66				706				4,896			3,607			—				14,801
Substandard			477				1,242				—				32,298		1, 2		4,558				10,541			11,092			—				60,208
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	59,109			$	96,993			$	78,638			$	94,514			$	72,995			$	118,685		$	68,610		$	—			$	589,544
YTD commercial gross charge-offs		$	—			$	—			$	—			$	—			$	7			$	—		$	—		$	—			$	7

1 Balances include $3.5 million USDA guarantee.

2 Balances include $16.4 million USDA guarantee.


		Term Loans Amortized Cost Basis by Origination Year
		2025				2024				2023				2022				2021				Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term				Total
December 31, 2025
Commercial and industrial:
Pass		$	21,139			$	18,113			$	15,011			$	9,206			$	4,524			$	5,519		$	51,362		$	—			$	124,874
Special mention			—				—				44				52				42				—			107			—				245
Substandard			957				—				10,560		1		4,363				306				904			10,448			—				27,538
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	22,096			$	18,113			$	25,615			$	13,621			$	4,872			$	6,423		$	61,917		$	—			$	152,657
YTD gross charge-offs		$	—			$	—			$	55			$	—			$	—			$	—		$	27		$	—			$	82
Commercial real estate:
Pass		$	41,371			$	28,413			$	30,621			$	35,659			$	40,055			$	31,846		$	1,471		$	—			$	209,436
Special Mention			—				—				—				671				2,702				11,133			—			—				14,506
Substandard			128				333				20,954		2		453				1,587				8,514			—			—				31,969
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	41,499			$	28,746			$	51,575			$	36,783			$	44,344			$	51,493		$	1,471		$	—			$	255,911
YTD gross charge-offs		$	—			$	—			$	303			$	—			$	—			$	—		$	—		$	—			$	303
Commercial lessors of buildings:
Pass		$	22,800			$	19,788			$	21,547			$	19,952			$	14,219			$	14,101		$	438		$	—			$	112,845
Special Mention			—				—				—				—				172				—			—			—				172
Substandard			—				—				—				—				—				955			38			—				993
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	22,800			$	19,788			$	21,547			$	19,952			$	14,391			$	15,056		$	476		$	—			$	114,010
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Commercial construction:
Pass		$	13,734			$	10,226			$	2,368			$	7,471			$	684			$	1,182		$	2,049		$	—			$	37,714
Special Mention			—				—				—				—				—				—			—			—				—
Substandard			—				—				—				—				—				68			—			—				68
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	13,734			$	10,226			$	2,368			$	7,471			$	684			$	1,250		$	2,049		$	—			$	37,782
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Total
Pass		$	99,044			$	76,540			$	69,547			$	72,288			$	59,482			$	52,648		$	55,320		$	—			$	484,869
Special Mention			—				—				44				723				2,916				11,133			107			—				14,923
Substandard			1,085				333				31,514		1, 2		4,816				1,893				10,441			10,486			—				60,568
Doubtful			—				—				—				—				—				—			—			—				—
Total		$	100,129			$	76,873			$	101,105			$	77,827			$	64,291			$	74,222		$	65,913		$	—			$	560,360
YTD commercial gross charge-offs		$	—			$	—			$	358			$	—			$	—			$	—		$	27		$	—			$	385

1 Balances include $3.5 million USDA guarantee.

2 Balances include $16.4 million USDA guarantee.

The Company monitors the credit risk profile by payment activity for the loan classes listed below. Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. The following table presents the amortized cost in consumer loans based on payment activity as of June 30, 2026 and December 31, 2025:


		Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)		2026				2025				2024				2023				2022				Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term				Total
June 30, 2026
Consumer mortgage:
Performing		$	12,783			$	27,683			$	27,246			$	23,439			$	28,576			$	77,815		$	—		$	—			$	197,542
Nonperforming			—				—				—				179				—				152			—			—				331
Total		$	12,783			$	27,683			$	27,246			$	23,618			$	28,576			$	77,967		$	—		$	—			$	197,873
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Consumer Construction:
Performing		$	2,726			$	6,107			$	432			$	—			$	424			$	119		$	—		$	—			$	9,808
Nonperforming			—				—				—				—				—				—			—			—				—
Total		$	2,726			$	6,107			$	432			$	—			$	424			$	119		$	—		$	—			$	9,808
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Home equity line of credit:
Performing		$	—			$	—			$	—			$	—			$	—			$	—		$	56,733		$	1,197			$	57,930
Nonperforming			—				—				—				—				—				—			62			—				62
Total		$	—			$	—			$	—			$	—			$	—			$	—		$	56,795		$	1,197			$	57,992
YTD gross charge-offs						$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Consumer installment:
Performing		$	3,498			$	3,297			$	1,277			$	1,217			$	508			$	276		$	49		$	—			$	10,122
Nonperforming			—				—				—				—				1				24			—			—				25
Total		$	3,498			$	3,297			$	1,277			$	1,217			$	509			$	300		$	49		$	—			$	10,147
YTD gross charge-offs		$	—			$	13			$	4			$	1			$	—			$	5		$	—		$	—			$	23
Consumer indirect:
Performing		$	196			$	316			$	498			$	356			$	667			$	1,891		$	—		$	—			$	3,924
Nonperforming			—				—				—				9				—				33			—			—				42
Total		$	196			$	316			$	498			$	365			$	667			$	1,924		$	—		$	—			$	3,966
YTD gross charge-offs		$	—			$	—			$	24			$	—			$	—			$	—		$	—		$	—			$	24
Total
Performing		$	19,203			$	37,403			$	29,453			$	25,012			$	30,175			$	80,101		$	56,782		$	1,197			$	279,326
Nonperforming			—				—				—				188				1				209			62			—				460
Total		$	19,203			$	37,403			$	29,453			$	25,200			$	30,176			$	80,310		$	56,844		$	1,197			$	279,786
YTD consumer gross charge-offs		$	—			$	13			$	28			$	1			$	—			$	5		$	—		$	—			$	47


		Term Loans Amortized Cost Basis by Origination Year
		2025				2024				2023				2022				2021				Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term				Total
December 31, 2025
Consumer mortgage:
Performing		$	23,328			$	30,593			$	25,839			$	29,546			$	29,711			$	53,945		$	—		$	—			$	192,962
Nonperforming			—				—				190				—				—				146			—			—				336
Total		$	23,328			$	30,593			$	26,029			$	29,546			$	29,711			$	54,091		$	—		$	—			$	193,298
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Consumer construction:
Performing		$	8,782			$	716			$	72			$	464			$	114			$	52		$	—		$	—			$	10,200
Nonperforming			—				—				—				—				—				—			—			—				—
Total		$	8,782			$	716			$	72			$	464			$	114			$	52		$	—		$	—			$	10,200
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Home equity line of credit:
Performing		$	—			$	—			$	—			$	—			$	—			$	—		$	52,201		$	351			$	52,552
Nonperforming			—				—				—				—				—				—			64			—				64
Total		$	—			$	—			$	—			$	—			$	—			$	—		$	52,265		$	351			$	52,616
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—		$	—		$	—			$	—
Consumer installment:
Performing		$	4,215			$	1,837			$	1,728			$	735			$	269			$	147		$	56		$	—			$	8,987
Nonperforming			—				—				3				2				—				27			—			—				32
Total		$	4,215			$	1,837			$	1,731			$	737			$	269			$	174		$	56		$	—			$	9,019
YTD gross charge-offs		$	17			$	21			$	14			$	4			$	2			$	13		$	—		$	—			$	71
Consumer indirect:
Performing		$	392			$	516			$	466			$	708			$	422			$	1,812		$	—		$	—			$	4,316
Nonperforming			—				—				12				—				—				38			—			—				50
Total		$	392			$	516			$	478			$	708			$	422			$	1,850		$	—		$	—			$	4,366
YTD gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	17		$	—		$	—			$	17
Total
Performing		$	36,717			$	33,662			$	28,105			$	31,453			$	30,516			$	55,956		$	52,257		$	351			$	269,017
Nonperforming			—				—				205				2				—				211			64			—				482
Total		$	36,717			$	33,662			$	28,310			$	31,455			$	30,516			$	56,167		$	52,321		$	351			$	269,499
YTD consumer gross charge-offs		$	17			$	21			$	14			$	4			$	2			$	30		$	—		$	—			$	88

Schedule of Modifications of Loans to Borrowers Experiencing Financial Difficulty

There was one modification of a loan to a borrower experiencing financial difficulty completed during the six month period ended June 30, 2026 and no modifications of loans to borrowers experiencing financial difficulty during the six month period June 30, 2025.


		Term Extension
(Dollars in thousands)		Amortized Cost Basis				% of Total Class of Financing Receivable
June 30, 2026
Home equity line of credit		$	125				0.2		%
Total		$	125


Term Extension
Loan Type	Financial Effect
Home equity line of credit	Added a 10 year term extension to the loan.

The Bank closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last twelve months:


(Dollars in thousands)		Current				31 - 60 Days Past Due				61 - 90 Days Past Due				Greater Than 90 Days Past Due				Total Past Due
June 30, 2026
Home equity line of credit		$	440			$	—			$	—			$	—			$	—
		$	440			$	—			$	—			$	—			$	—