ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2026

NOTE 4 ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses (“ACL”) consists of the allowance for credit losses on loans and the reserve for unfunded commitments. The Company’s ACL is governed by the Company’s ACL Committee, which reports to the Board of Directors and contains representatives from the Company’s finance, credit, and risk teams, and is responsible for calculating the Company’s estimate of expected credit losses and resulting ACL. The ACL Committee considers the quantitative model results and qualitative factors when finalizing the ACL. The Company’s ACL model is subject to the Company’s model risk management program, which is overseen by the Director of Risk Management who reports to the Company’s Board Risk Committee.

The following tables detail the changes in the ACL for the three and six months ended June 30, 2026 and 2025 (dollars in thousands).

	For the three months ended June 30, 2026
	Beginning Balance		Charge-offs		Recoveries		(Recovery of) provision for loan credit losses			Ending Balance
1-4 Family residential construction	$	165	$	-	$	-	$	(25	)	$	140
Other construction, land development and land		722		-		63		(39	)		746
Secured by farmland		1,465		-		-		102			1,567
Home equity – open end		184		20		-		33			197
Real estate		644		-		-		94			738
Home equity – closed end		67		-		-		(5	)		62
Multifamily		859		-		-		(3	)		856
Owner-occupied commercial real estate		687		-		-		15			702
Other commercial real estate		250		-		-		8			258
Agricultural loans		104		-		-		(6	)		98
Commercial and industrial		1,038		29		57		(30	)		1,036
Credit cards		88		22		11		13			90
Automobile loans		1,504		643		464		123			1,448
Other consumer loans		127		17		5		26			141
Municipal loans		6		-		-		-			6
Total allowance for credit losses - loans	$	7,910	$	731	$	600	$	306		$	8,085
Allowance for credit losses – unfunded commitments	$	786	$	-	$	-	$	(37	)	$	749

	For the three months ended June 30, 2025
	Beginning Balance		Charge-offs		Recoveries		(Recovery of) provision for loan credit losses			Ending Balance
1-4 Family residential construction	$	252	$	-	$	-	$	19		$	271
Other construction, land development and land		1,658		9		9		(611	)		1,047
Secured by farmland		1,043		-		-		434			1,477
Home equity – open end		191		-		-		(21	)		170
Real estate		692		-		1		190			883
Home equity – closed end		83		-		-		(10	)		73
Multifamily		32		-		-		2			34
Owner-occupied commercial real estate		713		-		-		129			842
Other commercial real estate		83		-		-		7			90
Agricultural loans		25		-		-		112			137
Commercial and industrial		826		85		145		372			1,258
Credit cards		79		17		5		13			80
Automobile loans		1,894		734		191		423			1,774
Other consumer loans		191		41		3		23			176
Municipal loans		-		-		-		-			-
Total allowance for credit losses - loans	$	7,762	$	886	$	354	$	1,082		$	8,312
Allowance for credit losses – unfunded commitments	$	725	$	-	$	-	$	105		$	830

	For the six months ended June 30, 2026
	Beginning Balance		Charge-offs		Recoveries		(Recovery of) provision for loan credit losses			Ending Balance
1-4 Family residential construction	$	193	$	-	$	-	$	(53	)	$	140
Other construction, land development and land		641		-		63		42			746
Secured by farmland		1,458		-		-		109			1,567
Home equity – open end		177		20		-		40			197
Real estate		629		12		-		121			738
Home equity – closed end		64		-		-		(2	)		62
Multifamily		656		-		-		200			856
Owner-occupied commercial real estate		691		-		-		11			702
Other commercial real estate		246		-		-		12			258
Agricultural loans		130		-		-		(32	)		98
Commercial and industrial		995		29		147		(77	)		1,036
Credit cards		90		36		21		15			90
Automobile loans		1,713		1,355		882		208			1,448
Other consumer loans		129		31		42		1			141
Municipal loans		6		-		-		-			6
Total allowance for credit losses - loans	$	7,818	$	1,483	$	1,155	$	595		$	8,085
Allowance for credit losses – unfunded commitments	$	766	$	-	$	-	$	(17	)	$	749

	For the six months ended June 30, 2025
	Beginning Balance		Charge-offs		Recoveries		(Recovery of) provision for loan credit losses			Ending Balance
1-4 Family residential construction	$	258	$	-	$	-	$	13		$	271
Other construction, land development and land		1,551		9		9		(504	)		1,047
Secured by farmland		946		-		-		531			1,477
Home equity – open end		197		-		24		(51	)		170
Real estate		606		-		3		274			883
Home equity – closed end		99		-		-		(26	)		73
Multifamily		190		-		-		(156	)		34
Owner-occupied commercial real estate		809		-		-		33			842
Other commercial real estate		105		-		-		(15	)		90
Agricultural loans		27		-		-		110			137
Commercial and industrial		982		85		147		214			1,258
Credit cards		87		32		11		14			80
Automobile loans		1,956		1,133		356		595			1,774
Other consumer loans		301		41		31		(115	)		176
Municipal loans		15		-		-		(15	)		-
Total allowance for credit losses - loans	$	8,129	$	1,300	$	581	$	902		$	8,312
Allowance for credit losses – unfunded commitments	$	649	$	-	$	-	$	181		$	830

Credit Quality Indicators

The Company presents loan and lease portfolio segments and classes by credit quality indicator and vintage year. The Company defines the vintage date for the purpose of this disclosure as the date of the most recent credit decision. Renewals are categorized as new credit decisions and reflect the renewal date as the vintage date, except for renewals of loans modified for borrowers experiencing financial difficulty which are presented in the original vintage.

Description of the Company’s credit quality indicators under the Current Expected Credit Loss (“CECL”) Model:

Grades 0-5 – Pass: Loans in all classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass.

Grade 6 – Watch: Loans are currently protected but are weak due to negative balance sheet or income statement trends. There may be a lack of effective control over collateral or the existence of documentation deficiencies. These loans have potential weaknesses that deserve management’s close attention. Other reasons supporting this classification include adverse economic or market conditions, pending litigation or any other material weakness. Existing loans that become 60 or more days past due are placed in this category pending a return to current status.

Grade 7 – Substandard: Loans having well-defined weaknesses where a payment default and/or loss is possible, but not yet probable. Cash flow is inadequate to service the debt under the current payment, or terms, with prospects that the condition is permanent. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower and there is the likelihood that collateral will have to be liquidated and/or guarantor(s) called upon to repay the debt. Generally, the loan is considered collectible as to both principal and interest, primarily because of collateral coverage, however, if the deficiencies are not corrected quickly; there is a probability of loss.

Credit cards are classified as pass or substandard. A credit card is substandard when payments of principal and interest are past due 90 days or more.

The following table presents the Company’s recorded investment in loans by credit quality indicators and gross write-offs by year of origination as of June 30, 2026 (dollars in thousands):

	Term Loans by Year of Origination
	2026		2025		2024		2023		2022		Prior		Revolving		Total
1-4 Family residential construction
Pass	$	-	$	371	$	1,467	$	338	$	-	$	-	$	20,821	$	22,997
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total 1-4 Family residential construction		-		371		1,467		338		-		-		20,821		22,997
Current period gross write-offs		-		-		-		-		-		-		-		-

Other construction, land development and land
Pass		625		10,282		2,217		11,540		955		4,410		13,878		43,907
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		20		-		20
Total Other construction, land development and land		625		10,282		2,217		11,540		955		4,430		13,878		43,927
Current period gross write-offs		-		-		-		-		-		-		-		-

Secured by farmland
Pass		14,041		18,211		10,775		10,677		11,468		45,744		12,489		123,405
Watch		-		-		-		-		1,609		1,447		-		3,056
Substandard		-		-		-		-		296		107		-		403
Total Secured by farmland		14,041		18,211		10,775		10,677		13,373		47,298		12,489		126,864
Current period gross write-offs		-		-		-		-		-		-		-		-

Home equity – open end
Pass		-		-		-		-		-		134		56,359		56,493
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		107		643		750
Total Home equity - open end		-		-		-		-		-		241		57,002		57,243
Current period gross write-offs		-		-		-		-		-		20		-		20
Real estate
Pass		25,396		52,311		27,268		48,868		37,605		67,630		-		259,078
Watch		1,397		-		-		1,422		-		190		-		3,009
Substandard		-		-		-		361		79		2,614		-		3,054
Total Real estate		26,793		52,311		27,268		50,651		37,684		70,434		-		265,141
Current period gross write-offs		-		-		-		-		-		12		-		12

Home Equity – closed end
Pass		178		613		218		2,280		144		2,412		-		5,845
Watch		59		-		-		-		-		-		-		59
Substandard		-		44		-		-		-		-		-		44
Total Home Equity - closed end		237		657		218		2,280		144		2,412		-		5,948
Current period gross write-offs		-		-		-		-		-		-		-		-

Multifamily
Pass		6,400		6,835		2,655		-		4,691		3,116		2,168		25,865
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total Multifamily		6,400		6,835		2,655		-		4,691		3,116		2,168		25,865
Current period gross write-offs		-		-		-		-		-		-		-		-

	Term Loans by Year of Origination
	2026		2025		2024		2023		2022		Prior		Revolving		Total
Owner-occupied commercial real estate
Pass		6,212		20,393		8,139		1,563		10,617		30,634		4,802		82,360
Watch		-		-		-		-		-		-		-		-
Substandard		-		58		1,134		-		-		9,012		-		10,204
Total Owner-occupied commercial real estate		6,212		20,451		9,273		1,563		10,617		39,646		4,802		92,564
Current period gross write-offs		-		-		-		-		-		-		-		-
Other commercial real estate
Pass		9,710		14,898		365		6,727		36,567		40,191		2,865		111,323
Watch		-		-		-		-		-		940		-		940
Substandard		-		-		7,734		-		-		-		-		7,734
Total Other commercial real estate		9,710		14,898		8,099		6,727		36,567		41,131		2,865		119,997
Current period gross write-offs		-		-		-		-		-		-		-		-
Agricultural loans
Pass		3,966		3,216		1,559		1,066		692		146		11,044		21,689
Watch		-		-		-		-		9		-		-		9
Substandard		-		-		-		79		-		-		-		79
Total Agricultural loans		3,966		3,216		1,559		1,145		701		146		11,044		21,777
Current period gross write-offs		-		-		-		-		-		-		-		-

Commercial and industrial
Pass		4,393		16,754		6,098		2,030		3,786		1,962		25,168		60,191
Watch		-		-		-		-		33		-		-		33
Substandard		-		30		-		267		-		-		100		397
Total Commercial and industrial		4,393		16,784		6,098		2,297		3,819		1,962		25,268		60,621
Current period gross write-offs		-		-		-		12		17		-		-		29

Credit Cards
Pass		-		-		-		-		-		-		3,487		3,487
Substandard		-		-		-		-		-		-		-		-
Total Credit Cards		-		-		-		-		-		-		3,487		3,487
Current period gross write-offs		-		-		-		-		-		-		36		36

Automobile loans
Pass		8,479		13,294		13,272		17,688		10,006		2,810		-		65,549
Watch		-		-		-		-		-		-		-		-
Substandard		15		7		103		58		175		75		-		433
Total Automobile loans		8,494		13,301		13,375		17,746		10,181		2,885		-		65,982
Current period gross write-offs		57		177		437		456		144		84		-		1,355

Other consumer loans
Pass		3,171		2,637		1,614		1,086		624		392		44		9,568
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		6		17		19		7		-		49
Total Other consumer loans		3,171		2,637		1,620		1,103		643		399		44		9,617
Current period gross write-offs		-		3		8		8		5		7		-		31
Municipal loans
Pass		-		-		-		-		-		3,823		-		3,823
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total Municipal loans		-		-		-		-		-		3,823		-		3,823
Current period gross write-offs		-		-		-		-		-		-		-		-

Total loans	$	84,042	$	159,954	$	84,624	$	106,067	$	119,375	$	217,923	$	153,868	$	925,853
Less: Unamortized net deferred loan fees																(586	)
Loans held for investment															$	925,267

Current period gross write-offs	$	57	$	180	$	445	$	476	$	166	$	123	$	36	$	1,483

The following table presents the Company’s recorded investment in loans by credit quality indicators and gross write-offs by year of origination as of December 31, 2025 (dollars in thousands):

	Term Loans by Year of Origination
	2025		2024		2023		2022		2021		Prior		Revolving		Total
1-4 Family residential construction
Pass	$	-	$	-	$	338	$	-	$	-	$	116	$	30,664	$	31,118
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total 1-4 Family residential construction		-		-		338		-		-		116		30,664		31,118
Current period gross write-offs		-		-		-		-		-		-		-		-

Other construction, land development and land
Pass		5,691		2,701		11,877		969		427		3,252		14,195		39,112
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		75		75
Total Other construction, land development and land		5,691		2,701		11,877		969		427		3,252		14,270		39,187
Current period gross write-offs		-		-		-		-		-		23		-		23

Secured by farmland
Pass		17,063		9,423		10,887		12,838		13,122		34,648		13,469		111,450
Watch		-		-		-		1,609		1,507		-		-		3,116
Substandard		-		-		-		319		-		-		115		434
Total Secured by farmland		17,063		9,423		10,887		14,766		14,629		34,648		13,584		115,000
Current period gross write-offs		-		-		-		-		-		-		-		-

Home equity – open end
Pass		-		-		-		-		-		122		50,587		50,709
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		684		684
Total Home equity - open end		-		-		-		-		-		122		51,271		51,393
Current period gross write-offs		-		-		-		-		27		-		-		27
Real estate
Pass		43,676		26,645		53,562		40,299		11,899		59,454		1,040		236,575
Watch		-		1,416		1,436		-		-		211		-		3,063
Substandard		-		-		289		81		655		2,698		-		3,723
Total Real estate		43,676		28,061		55,287		40,380		12,554		62,363		1,040		243,361
Current period gross write-offs		-		-		-		-		5		-		-		5

Home Equity – closed end
Pass		635		422		2,339		192		57		2,281		-		5,926
Watch		-		-		-		-		-		-		-		-
Substandard		54		-		-		-		-		-		-		54
Total Home Equity - closed end		689		422		2,339		192		57		2,281		-		5,980
Current period gross write-offs		-		-		-		-		-		-		-		-

Multifamily
Pass		7,051		2,680		-		2,556		1,241		2,262		3,064		18,854
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total Multifamily		7,051		2,680		-		2,556		1,241		2,262		3,064		18,854
Current period gross write-offs		-		-		-		-		-		-		-		-

	Term Loans by Year of Origination
	2025		2024		2023		2022		2021		Prior		Revolving		Total
Owner-occupied commercial real estate
Pass		20,096		9,403		2,354		16,357		14,163		18,587		4,929		85,889
Watch		-		-		-		-		-		-		-		-
Substandard		62		1,148		-		-		-		9,503		49		10,762
Total Owner-occupied commercial real estate		20,158		10,551		2,354		16,357		14,163		28,090		4,978		96,651
Current period gross write-offs		-		-		-		-		-		301		-		301
Other commercial real estate
Pass		14,989		372		6,853		36,997		11,075		32,759		2,533		105,578
Watch		-		-		-		-		-		966		-		966
Substandard		-		7,806		-		-		-		84		-		7,890
Total Other commercial real estate		14,989		8,178		6,853		36,997		11,075		33,809		2,533		114,434
Current period gross write-offs		-		-		-		-		-		-		-		-
Agricultural loans
Pass		5,387		1,910		1,364		973		151		53		10,092		19,930
Watch		-		-		-		9		-		16		-		25
Substandard		-		-		112		-		-		-		60		172
Total Agricultural loans		5,387		1,910		1,476		982		151		69		10,152		20,127
Current period gross write-offs		-		-		-		171		-		-		-		171

Commercial and industrial
Pass		18,025		6,615		2,710		4,675		2,359		251		20,980		55,615
Watch		-		-		-		43		-		-		150		193
Substandard		35		-		317		17		-		-		708		1,077
Total Commercial and industrial		18,060		6,615		3,027		4,735		2,359		251		21,838		56,885
Current period gross write-offs		-		408		-		75		-		-		-		483

Credit Cards
Pass		-		-		-		-		-		-		3,387		3,387
Substandard		-		-		-		-		-		-		-		-
Total Credit Cards		-		-		-		-		-		-		3,387		3,387
Current period gross write-offs		-		-		-		-		-		-		57		57

Automobile loans
Pass		16,255		17,479		23,351		14,122		4,512		868		-		76,587
Watch		-		-		-		-		-		-		-		-
Substandard		14		140		21		207		76		35		-		493
Total Automobile loans		16,269		17,619		23,372		14,329		4,588		903		-		77,080
Current period gross write-offs		97		904		1,082		644		186		109		-		3,022

Other consumer loans
Pass		3,215		2,166		1,669		1,128		268		336		307		9,089
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		19		14		8		2		-		43
Total Other consumer loans		3,215		2,166		1,688		1,142		276		338		307		9,132
Current period gross write-offs		9		34		38		58		5		2		-		146
Municipal loans
Pass		-		-		-		-		500		3,719		-		4,219
Watch		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total Municipal loans		-		-		-		-		500		3,719		-		4,219
Current period gross write-offs		-		-		-		-		-		-		-		-

Total loans	$	152,248	$	90,326	$	119,498	$	133,405	$	62,020	$	172,223	$	157,088	$	886,808
Less: Unamortized net deferred loan fees																(555	)
Loans held for investment															$	886,253

Current period gross write-offs	$	106	$	1,346	$	1,120	$	948	$	223	$	435	$	57	$	4,235

Nonaccrual and Past Due Loans

The following table shows the aging of the Company’s loans held for investment, by segment (dollars in thousands):

Age Analysis of Past Due Loans As of June 30, 2026
	Accruing Loans 30-59 Days Past due		Accruing Loans 60-89 Days Past due		Accruing Loans 90 Days or More Past due		Nonaccrual Loans		Accruing Current Loans			Total Loans
1-4 Family residential construction	$	-	$	-	$	-	$	-	$	22,997		$	22,997
Other construction, land development and land		155		-		-		20		43,752			43,927
Secured by farmland		25		-		-		403		126,436			126,864
Home equity – open end		178		-		-		460		56,605			57,243
Real estate		621		519		252		1,743		262,006			265,141
Home equity – closed end		61		-		-		-		5,887			5,948
Multifamily		-		-		-		-		25,865			25,865
Owner-occupied commercial real estate		509		-		-		616		91,439			92,564
Other commercial real estate		62		-		-		-		119,935			119,997
Agricultural loans		-		-		-		79		21,698			21,777
Commercial and industrial		90		-		-		-		60,531			60,621
Credit cards		30		12		6		-		3,439			3,487
Automobile loans		1,452		251		-		319		63,960			65,982
Other consumer loans		65		14		-		47		9,491			9,617
Municipal loans		-		-		-		-		3,823			3,823
Gross loans		3,248		796		258		3,687		917,864			925,853
Less: Unamortized net deferred loan fees		-		-		-		-		(586	)		(586	)
Loans held for investment	$	3,248	$	796	$	258	$	3,687	$	917,278		$	925,267

Age Analysis of Past Due Loans As of December 31, 2025
	Accruing Loans 30-59 Days Past due		Accruing Loans 60-89 Days Past due		Accruing Loans 90 Days or More Past due		Nonaccrual Loans		Accruing Current Loans			Total Loans
1-4 Family residential construction	$	-	$	-	$	-	$	-	$	31,118		$	31,118
Other construction, land development and land		601		-		-		-		38,586			39,187
Secured by farmland		-		-		-		434		114,566			115,000
Home equity – open end		267		61		-		462		50,603			51,393
Real estate		2,545		902		-		2,308		237,606			243,361
Home equity – closed end		83		-		-		-		5,897			5,980
Multifamily		-		-		-		-		18,854			18,854
Owner-occupied commercial real estate		538		1,148		-		2,201		92,764			96,651
Other commercial real estate		-		-		-		-		114,434			114,434
Agricultural loans		121		-		-		172		19,834			20,127
Commercial and industrial		223		311		-		29		56,322			56,885
Credit cards		37		12		5		-		3,333			3,387
Automobile loans		1,832		390		2		389		74,467			77,080
Other consumer loans		93		16		-		42		8,981			9,132
Municipal loans		-		-		-		-		4,219			4,219
Gross loans		6,340		2,840		7		6,037		871,584			886,808
Less: Unamortized net deferred loan fees		-		-		-		-		(555	)		(555	)
Loans held for investment	$	6,340	$	2,840	$	7	$	6,037	$	871,029		$	886,253

There were $3.7 million and $6.0 million in nonaccrual loans at June 30, 2026 and December 31, 2025, respectively. There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2026 and 2025.

The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated (dollars in thousands).

	June 30, 2026						December 31, 2025
	Nonaccrual loans						Nonaccrual loans
	With no Allowance		With an Allowance		Total		With no Allowance		With an Allowance		Total
Other construction, land development and land	$	20	$	-	$	20	$	-	$	-	$	-
Secured by farmland		-		403		403		-		434		434
Home equity – open end		353		107		460		462		-		462
Real estate		1,392		352		1,744		2,206		102		2,308
Owner-occupied commercial real estate		-		616		616		2,201		-		2,201
Agricultural loans		-		78		78		60		112		172
Commercial and industrial		-		-		-		29		-		29
Automobile loans		319		-		319		389		-		389
Other consumer loans		47		-		47		42		-		42
Total loans	$	2,131	$	1,556	$	3,687	$	5,389	$	648	$	6,037

Collateral Dependent Disclosures

The collateral method is applied to individually evaluated loans for which foreclosure is probable. The collateral method is also applied to individually evaluated loans when borrowers are experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loans collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required.

The following table presents the total recorded investment in collateral-dependent loans of the Company as of the periods noted (dollars in thousands):

	Collateral Dependent Loans and Leases
	June 30,		December 31,
	2026		2025
Secured by farmland	$	403	$	434
Home equity – open end		107		175
Real estate		352		868
Owner-occupied commercial real estate		616		2,201
Agricultural loans		78		112
Total loans	$	1,556	$	3,790

Troubled Loan Modifications

The Company closely monitors the performance of borrowers experiencing financial difficulty and grants certain loan modifications it would not otherwise consider. The Company refers to such loan modifications as troubled loan modifications (“TLMs”).

The following tables present the amortized cost of loans and leases to borrowers experiencing financial difficulty by class of financing receivable, type of modification, financial effect of the modification, and percentage of the amortized cost basis of modifications as compared to the amortized cost basis of each loan segment for the periods presented (dollars in thousands).

There were no loans modified for borrowers experiencing financial difficulty in the three months ended June 30, 2026. There were two loans that were modified for borrowers experiencing financial difficulty in the first quarter of 2026 that were paid off by the borrowers during the second quarter of 2026. There were no loans modified for borrowers experiencing financial difficulty in the three months or six months ended June 30, 2025.

The following tables present an aging analysis of the amortized cost of TLMs as of the dates stated (dollars in thousands).

	June 30, 2026
	Current Loans		30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total
Real estate	$	44	$	-	$	-	$	-	$	44
Owner occupied commercial real estate		5,310		-		-		616		5,926
Automobile loans		15		2		-		13		30
Total modified loans	$	5,369	$	2	$	-	$	629	$	6,000

	December 31, 2025
	Current Loans		30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total
Home equity – closed end	$	-	$	-	$	-	$	1	$	1
Real estate		-		54		-		-		54
Owner occupied commercial real estate		5,360		-		-		891		6,251
Automobile loans		19		8		-		23		50
Total modified loans	$	5,379	$	62	$	-	$	915	$	6,356

At June 30, 2026 and December 31, 2025, there were no unfunded commitments to borrowers with TLMs.

The following table presents the amortized cost of TLMs modified in the preceding twelve months that had a payment default during the periods stated (dollars in thousands).

	For the three and six months ended June 30,
	2026							2025
	Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category			Number of Loans		Amortized Cost		% of Amortized Cost to Gross Loans by Category
Term extension and deferral
Real estate		-	$	-		0.00	%		1	$	5		0.01	%
Automobile loans		1		8		0.01	%		1		8		0.01	%
Total term extension and deferral		1	$	8					2	$	13

Other than temporary payment delay
Owner occupied commercial real estate		-	$	-		0.00	%		1	$	1,192		1.27	%
Total other than temporary payment delay		-	$	-					1	$	1,192

Total		1	$	8					3	$	1,205

The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit. The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over their estimated life, which are the same loss rates that are used in computing the ACL. The ACL for unfunded commitments is classified on the balance sheet within other liabilities.