| LOANS |
NOTE 3:LOANS The following table presents total loans at June 30, 2026 and December 31, 2025, by portfolio segment and class of loan: | | | | | | | | | June 30, 2026 | | December 31, 2025 | Commercial: | | | | | | | Other construction and land/land development | | $ | 1,129,192 | | $ | 1,087,189 | Commercial real estate | | | 7,041,679 | | | 7,147,826 | Commercial and industrial | | | 2,684,216 | | | 2,317,079 | Municipal | | | 43,576 | | | 46,214 | Residential real estate: | | | | | | | Residential construction | | | 1,689,671 | | | 888,416 | Revolving, open-end | | | 4,427,561 | | | 3,464,812 | First liens | | | 74,508,106 | | | 73,906,730 | Junior liens | | | 1,250,912 | | | 1,263,727 | Consumer | | | 981,811 | | | 1,199,819 | Subtotal | | | 93,756,724 | | | 91,321,812 | Allowance for credit losses | | | (1,118,851) | | | (1,138,600) | Net deferred loan fees | | | (417,797) | | | (421,716) | Loans, net | | $ | 92,220,076 | | $ | 89,761,496 |
Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others totaled $686,182 at June 30, 2026 and $760,034 at December 31, 2025. Mortgage servicing rights are not material to the financial statements. Deposit accounts in an overdraft position and reclassified as loans totaled $3,238 at June 30, 2026 and $3,769 at December 31, 2025. Activity in the allowance for credit losses on loans by portfolio segment follows: | | | | | | | | | | | | | | | | | | Residential | | | | | | | | | Commercial | | Real Estate | | Consumer | | Total | For the three months ended June 30, 2026 | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | Balances at March 31, 2026 | | $ | 130,195 | | $ | 1,033,149 | | $ | 5,523 | | $ | 1,168,867 | Recovery of credit losses on loans | | | (7,064) | | | (43,010) | | | (3,344) | | | (53,418) | Loans charged off | | | — | | | — | | | — | | | — | Recoveries of loans previously charged off | | | — | | | — | | | 3,402 | | | 3,402 | Balances at June 30, 2026 | | | 123,131 | | | 990,139 | | | 5,581 | | | 1,118,851 | | | | | | | | | | | | | | Reserve for unfunded loan commitments | | | | | | | | | | | | | Balance at March 31, 2026 | | | | | | | | | | | $ | 66,280 | Recovery of credit losses on unfunded loan commitments | | | | | | | | | | | | (266) | Balance at June 30, 2026 | | | | | | | | | | | $ | 66,014 | | | | | | | | | | | | | | For the six months ended June 30, 2026 | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | Balances at December 31, 2025 | | | 137,257 | | | 995,084 | | | 6,259 | | | 1,138,600 | Recovery of credit losses on loans | | | (14,126) | | | (4,945) | | | (4,117) | | | (23,188) | Loans charged off | | | — | | | — | | | (891) | | | (891) | Recoveries of loans previously charged off | | | — | | | — | | | 4,330 | | | 4,330 | Balances at June 30, 2026 | | $ | 123,131 | | $ | 990,139 | | $ | 5,581 | | $ | 1,118,851 | | | | | | | | | | | | | | Reserve for unfunded loan commitments | | | | | | | | | | | | | Balance at December 31, 2025 | | | | | | | | | | | $ | 47,183 | Provision for credit losses on unfunded loan commitments | | | | | | | | | | | | 18,831 | Balance at June 30, 2026 | | | | | | | | | | | $ | 66,014 | | | | | | | | | | | | | | For the three months ended June 30, 2025 | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | Balances at March 31, 2025 | | $ | 56,652 | | $ | 1,046,443 | | $ | 8,513 | | $ | 1,111,608 | Provision for (recovery of) credit losses on loans | | | 520 | | | (8,084) | | | (3,679) | | | (11,243) | Loans charged off | | | — | | | — | | | (1,504) | | | (1,504) | Recoveries of loans previously charged off | | | — | | | — | | | — | | | — | Balances at June 30, 2025 | | | 57,172 | | | 1,038,359 | | | 3,330 | | | 1,098,861 | | | | | | | | | | | | | | Reserve for unfunded loan commitments | | | | | | | | | | | | | Balance at March 31, 2025 | | | | | | | | | | | $ | 35,041 | Provision for credit losses on unfunded loan commitments | | | | | | | | | | | | — | Balance at June 30, 2025 | | | | | | | | | | | $ | 35,041 | | | | | | | | | | | | | | For the six months ended June 30, 2025 | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | Balance at December 31, 2024 | | $ | 63,531 | | $ | 1,138,183 | | $ | 6,435 | | $ | 1,208,149 | Provision for (recovery of) credit losses on loans | | | (6,359) | | | (99,824) | | | 1,805 | | | (104,378) | Loans charged off | | | — | | | — | | | (4,910) | | | (4,910) | Recoveries of loans previously charged off | | | — | | | — | | | — | | | — | Balance at June 30, 2025 | | | 57,172 | | | 1,038,359 | | | 3,330 | | | 1,098,861 | | | | | | | | | | | | | | Reserve for unfunded loan commitments | | | | | | | | | | | | | Balance at December 31, 2024 | | | | | | | | | | | $ | 35,041 | Provision for credit losses on unfunded loan commitments | | | | | | | | | | | | — | Balance at June 30, 2025 | | | | | | | | | | | $ | 35,041 |
During the six months ended June 30, 2026, accrued interest that was written off, related to loans placed in nonaccrual status during the period, amounted to approximately $16,000, all related to residential real estate first liens loans. During the six months ended June 30, 2025, there was no accrued interest that was written off, related to loans placed in nonaccrual status during the period. There were no collateral dependent loans as of June 30, 2026 and December 31, 2025. The Bank regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses on loans. The credit quality indicators monitored differ depending on the class of loan. Loans are generally evaluated using the following internally prepared ratings: | ● | Pass: These loans are supported by reliable and current financial statements and the Bank is protected by adequate collateral margins. The business may not have secondary means of payment, may be relatively new, but has adequate liquidity, equity and profitability. |
| ● | Special Mention: These loans are currently protected but show potential financial, operational or other deterioration or weaknesses that need to be corrected. These credits are still strong enough and/or have ample collateral to ensure that liquidation of the loan is not threatened but could reach that point and become further classified. If weaknesses are significant, even though well secured, the loan should be considered for more serious criticism. |
| ● | Substandard: These loans are no longer protected by the current sound net worth and paying capacity of the obligor. These loans exhibit defined credit weaknesses which, if not corrected, could expose the Bank to loss, including all loans which have gone to foreclosure or which have become reliant upon liquidation of collateral for repayment. |
| ● | Doubtful: These loans have deteriorated to the point where collection or liquidation in full, on the basis of currently existing facts, conditions and values, is highly questionable and improbable. If the loss portion of the loan can be reasonably estimated and there are no pending actions which may strengthen or protect the Bank from loss, a partial charge-off should be considered. |
Internally prepared ratings for loans are updated at least annually. Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan as of the balance sheet date. Loans past due 90 days or more and loans on nonaccrual are considered nonperforming. Information regarding the loan portfolio by risk classification and origination year as of June 30, 2026, follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | Converted to | | | | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving | | Term Loans | | Total | Other construction and land/land development | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 181,236 | | $ | 259,462 | | $ | 545,630 | | $ | 32,077 | | $ | 55,970 | | $ | 54,817 | | $ | — | | $ | — | | $ | 1,129,192 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 181,236 | | | 259,462 | | | 545,630 | | | 32,077 | | | 55,970 | | | 54,817 | | | — | | | — | | | 1,129,192 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 1,575,432 | | | 2,234,902 | | | 1,262,634 | | | — | | | 827,298 | | | 1,081,553 | | | 59,860 | | | — | | | 7,041,679 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 1,575,432 | | | 2,234,902 | | | 1,262,634 | | | — | | | 827,298 | | | 1,081,553 | | | 59,860 | | | — | | | 7,041,679 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 158,098 | | | 1,642,544 | | | 15,831 | | | — | | | — | | | — | | | 867,743 | | | — | | | 2,684,216 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 158,098 | | | 1,642,544 | | | 15,831 | | | — | | | — | | | — | | | 867,743 | | | — | | | 2,684,216 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Municipal | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | — | | | — | | | — | | | — | | | — | | | 43,576 | | | — | | | — | | | 43,576 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 43,576 | | $ | — | | $ | — | | $ | 43,576 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Residential construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 849,615 | | $ | 840,056 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,689,671 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 849,615 | | | 840,056 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1,689,671 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Revolving, open-end | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | — | | | — | | | — | | | — | | | — | | | — | | | 4,427,561 | | | — | | | 4,427,561 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | — | | | — | | | — | | | — | | | — | | | — | | | 4,427,561 | | | — | | | 4,427,561 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | First liens | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 5,215,114 | | | 6,100,229 | | | 7,203,833 | | | 7,115,759 | | | 10,905,012 | | | 37,512,937 | | | — | | | — | | | 74,052,884 | Nonperforming | | | — | | | — | | | — | | | 455,222 | | | — | | | — | | | — | | | — | | | 455,222 | Totals | | | 5,215,114 | | | 6,100,229 | | | 7,203,833 | | | 7,570,981 | | | 10,905,012 | | | 37,512,937 | | | — | | | — | | | 74,508,106 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Junior liens | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 273,982 | | | 471,799 | | | 336,679 | | | 37,341 | | | 118,998 | | | 12,113 | | | — | | | — | | | 1,250,912 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 273,982 | | | 471,799 | | | 336,679 | | | 37,341 | | | 118,998 | | | 12,113 | | | — | | | — | | | 1,250,912 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 197,025 | | | 383,622 | | | 158,729 | | | 135,247 | | | 5,278 | | | 101,910 | | | — | | | — | | | 981,811 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | $ | 197,025 | | $ | 383,622 | | $ | 158,729 | | $ | 135,247 | | $ | 5,278 | | $ | 101,910 | | $ | — | | $ | — | | $ | 981,811 | Current period gross charge offs | | | — | | | 891 | | | — | | | — | | | — | | | — | | | — | | | — | | | 891 |
Information regarding the loan portfolio by risk classification and origination year as of December 31, 2025, follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | Converted to | | | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving | | Term Loans | | Total | Other construction and land/land development | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 354,590 | | $ | 575,616 | | $ | 34,818 | | $ | 61,851 | | $ | 47,771 | | $ | 12,543 | | $ | — | | $ | — | | $ | 1,087,189 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 354,590 | | | 575,616 | | | 34,818 | | | 61,851 | | | 47,771 | | | 12,543 | | | — | | | — | | | 1,087,189 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 2,855,732 | | | 1,326,304 | | | — | | | 860,452 | | | 966,081 | | | 1,115,255 | | | 24,002 | | | — | | | 7,147,826 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 2,855,732 | | | 1,326,304 | | | — | | | 860,452 | | | 966,081 | | | 1,115,255 | | | 24,002 | | | — | | | 7,147,826 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 1,470,768 | | | 21,623 | | | 2,865 | | | — | | | — | | | 65,974 | | | 657,840 | | | — | | | 2,219,070 | Special Mention | | | 98,009 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 98,009 | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 1,568,777 | | | 21,623 | | | 2,865 | | | — | | | — | | | 65,974 | | | 657,840 | | | — | | | 2,317,079 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Municipal | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | — | | | — | | | — | | | — | | | — | | | 46,214 | | | — | | | — | | | 46,214 | Special Mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | — | | | — | | | — | | | — | | | — | | | 46,214 | | | — | | | — | | | 46,214 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Residential construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 888,416 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 888,416 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 888,416 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 888,416 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Revolving, open-end | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,464,812 | | | — | | | 3,464,812 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,464,812 | | | — | | | 3,464,812 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | First liens | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 5,423,253 | | | 8,611,224 | | | 8,115,642 | | | 11,451,615 | | | 13,761,538 | | | 25,692,748 | | | — | | | — | | | 73,056,020 | Nonperforming | | | — | | | — | | | 792,885 | | | — | | | — | | | 57,825 | | | — | | | — | | | 850,710 | Totals | | | 5,423,253 | | | 8,611,224 | | | 8,908,527 | | | 11,451,615 | | | 13,761,538 | | | 25,750,573 | | | — | | | — | | | 73,906,730 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Junior liens | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 638,011 | | | 390,630 | | | 79,447 | | | 125,061 | | | — | | | 30,578 | | | — | | | — | | | 1,263,727 | Nonperforming | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Totals | | | 638,011 | | | 390,630 | | | 79,447 | | | 125,061 | | | — | | | 30,578 | | | — | | | — | | | 1,263,727 | Current period gross charge offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | | 569,215 | | | 284,421 | | | 195,104 | | | 27,231 | | | 59,335 | | | 63,622 | | | — | | | — | | | 1,198,928 | Nonperforming | | | 891 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 891 | Totals | | $ | 570,106 | | $ | 284,421 | | $ | 195,104 | | $ | 27,231 | | $ | 59,335 | | $ | 63,622 | | $ | — | | $ | — | | $ | 1,199,819 | Current period gross charge offs | | | — | | | 928 | | | 1,504 | | | 3,406 | | | — | | | — | | | — | | | — | | | 5,838 |
Loan aging information as of June 30, 2026 and December 31, 2025 follows: | | | | | | | | | | | | | | | | | | | | | Loans Past Due | | Loans Past Due | | Loans Past Due | | | | | | Current Loans | | 30 – 59 Days | | 60 – 89 Days | | 90+ Days | | Total Loans | June 30, 2026 | | | | | | | | | | | | | | | | Other construction and land/land development | | $ | 1,129,192 | | $ | — | | $ | — | | $ | — | | $ | 1,129,192 | Commercial real estate | | | 7,041,679 | | | — | | | — | | | — | | | 7,041,679 | Commercial and industrial | | | 2,684,216 | | | — | | | — | | | — | | | 2,684,216 | Municipal | | | 43,576 | | | — | | | — | | | — | | | 43,576 | Residential construction | | | 1,689,671 | | | — | | | — | | | — | | | 1,689,671 | Revolving, open-end | | | 4,227,811 | | | 199,750 | | | — | | | — | | | 4,427,561 | First liens | | | 74,016,671 | | | — | | | 36,213 | | | 455,222 | | | 74,508,106 | Junior liens | | | 1,250,912 | | | — | | | — | | | — | | | 1,250,912 | Consumer | | | 981,811 | | | — | | | — | | | — | | | 981,811 | Total | | $ | 93,065,539 | | $ | 199,750 | | $ | 36,213 | | $ | 455,222 | | $ | 93,756,724 | December 31, 2025 | | | | | | | | | | | | | | | | Other construction and land/land development | | $ | 1,087,189 | | $ | — | | $ | — | | $ | — | | $ | 1,087,189 | Commercial real estate | | | 7,147,826 | | | — | | | — | | | — | | | 7,147,826 | Commercial and industrial | | | 2,317,079 | | | — | | | — | | | — | | | 2,317,079 | Municipal | | | 46,214 | | | — | | | — | | | — | | | 46,214 | Residential construction | | | 888,416 | | | — | | | — | | | — | | | 888,416 | Revolving, open-end | | | 3,464,812 | | | — | | | — | | | — | | | 3,464,812 | First liens | | | 73,056,020 | | | 336,238 | | | 514,472 | | | — | | | 73,906,730 | Junior liens | | | 1,263,727 | | | — | | | — | | | — | | | 1,263,727 | Consumer | | | 1,198,928 | | | 891 | | | — | | | — | | | 1,199,819 | Total | | $ | 90,470,211 | | $ | 337,129 | | $ | 514,472 | | $ | — | | $ | 91,321,812 |
Nonaccrual loans as of June 30, 2026 follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized | | | | | | | | | | | | Interest | | Cost Basis of | | | Nonaccrual | | Nonaccrual | | | | | Income | | Loans 90+ | | | Loans With No | | Loans With an | | Total | | Recognized on | | Days Past Due | | | Allowance for | | Allowance for | | Nonaccrual | | Nonaccrual | | Not on | | | Credit Losses | | Credit Losses | | Loans | | Loans | | Nonaccrual | June 30, 2026 | | | | | | | | | | | | | | | | First liens | | $ | 455,222 | | $ | — | | $ | 455,222 | | $ | — | | $ | — | Total | | $ | 455,222 | | $ | — | | $ | 455,222 | | $ | — | | $ | — |
As of December 31, 2025, there were no loans on nonaccrual. The Bank did not have any loan modifications to borrowers experiencing financial difficulty during the six months ended June 30, 2026 and 2025. Directors and executive officers of the Bank, including their families and businesses in which they are principal owners, are considered related parties. All loans to these related parties were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others and did not involve more than the normal risk of collectability or present other unfavorable features. A summary of loans to directors, executive officers, and their affiliates as of June 30, 2026 and December 31, 2025 is as follows: | | | | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | Beginning balance | | $ | 553,843 | | $ | 607,052 | New loans | | | 218,697 | | | 14,970 | Repayments | | | (30,122) | | | (68,179) | Ending balance | | $ | 742,418 | | $ | 553,843 |
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