v3.26.3
Note 4 - Loans and the Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES

 

The following table presents the composition of the Company's loans outstanding:

 

 

 

September 30,

 

 

December 31,

 

($ in thousands)

 

2026

 

 

2025

 

 

 

 

 

​

 

 

 

​

Commercial

 

$

159,905

 

 

$

167,851

 

Agricultural

 

 

139,336

 

 

 

157,526

 

Real estate – residential

 

 

31,238

 

 

 

33,116

 

Real estate – commercial

 

 

1,015,901

 

 

 

1,002,627

 

Real estate – construction and land development

 

 

54,411

 

 

 

40,168

 

Equity lines of credit (Equity LOC)

 

 

54,389

 

 

 

53,647

 

Auto

 

 

25,425

 

 

 

39,595

 

Other

 

 

14,940

 

 

 

17,526

 

Total loans

 

 

1,495,545

 

 

 

1,512,056

 

Deferred loan costs, net

 

 

3,952

 

 

 

3,737

 

Loans, amortized cost basis

 

 

1,499,497

 

 

 

1,515,793

 

Allowance for credit losses

 

 

(19,742

)

 

 

(19,959

)

Total net loans

 

$

1,479,755

 

 

$

1,495,834

 

 

Salaries and employee benefits totaling $826,000 and $951,000 have been deferred as loan origination costs during the three months ended  September 30, 2026  and 2025, respectively. Salaries and employee benefits totaling $2,426,000 and $2,173,000 have been deferred as loan origination costs during the nine months ended   September 30, 2026  and 2025, respectively.

 

The Company assigns a risk rating to all loans and periodically, but not less than annually, performs detailed reviews of all criticized and classified loans over $100,000 to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by independent specialists engaged by the Company and the Company’s regulators. During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans. These credit quality indicators are used to assign a risk rating to each individual loan.

 

The risk ratings can be grouped into three major categories, defined as follows:

 

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

 

Substandard – A substandard loan is not adequately protected by the current sound worth and paying capacity of the borrower or the value of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well defined weaknesses include a project's lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project's failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

 

Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

 

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass-rated loans. Pass-rated loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions.

 

For other loans, which are primarily consumer loans and automobile loans the Company evaluates credit quality based on the aging status of the loan and by payment activity. Non-performing loans consist of nonaccrual loans and loans past due 90 days or more and still accruing. 

 

The following table presents the amortized cost basis of the loan portfolio allocated by management's internal risk ratings or payment activity at the dates indicated, in thousands:

 

 

 

Amortized Cost Basis by Origination Year and Risk Grades As of September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Revolving Loans Book Amortized Cost Basis

 

 

Revolving Loans Converted to Term Amortized Cost Basis

 

 

Total - Amortized Cost Basis

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$20,658

 

 

$22,339

 

 

$25,722

 

 

$15,177

 

 

$21,224

 

 

$16,662

 

 

$27,846

 

 

$-

 

 

$149,628

 

Special Mention

 

 

1,862

 

 

 

2,430

 

 

 

-

 

 

 

769

 

 

 

-

 

 

 

50

 

 

 

2,558

 

 

 

-

 

 

 

7,669

 

Substandard

 

 

560

 

 

 

434

 

 

 

-

 

 

 

210

 

 

 

16

 

 

 

1,421

 

 

 

896

 

 

 

-

 

 

 

3,537

 

Total Commercial loans

 

$23,080

 

 

$25,203

 

 

$25,722

 

 

$16,156

 

 

$21,240

 

 

$18,133

 

 

$31,300

 

 

$-

 

 

$160,834

 

Current period gross charge-offs

 

$-

 

 

$101

 

 

$-

 

 

$-

 

 

$100

 

 

$2

 

 

$107

 

 

$-

 

 

$310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$5,614

 

 

$9,072

 

 

$4,154

 

 

$13,470

 

 

$10,730

 

 

$41,777

 

 

$21,437

 

 

$-

 

 

$106,254

 

Special Mention

 

 

-

 

 

 

53

 

 

 

-

 

 

 

1,729

 

 

 

162

 

 

 

5,735

 

 

 

2,431

 

 

 

-

 

 

 

10,110

 

Substandard

 

 

714

 

 

 

492

 

 

 

225

 

 

 

4,243

 

 

 

10,438

 

 

 

5,982

 

 

 

1,151

 

 

 

-

 

 

 

23,245

 

Total Agricultural

 

$6,328

 

 

$9,617

 

 

$4,379

 

 

$19,442

 

 

$21,330

 

 

$53,494

 

 

$25,019

 

 

$-

 

 

$139,609

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$6

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$525

 

 

$2,269

 

 

$3,496

 

 

$1,024

 

 

$8,004

 

 

$12,777

 

 

$1

 

 

$-

 

 

$28,096

 

Special Mention

 

 

-

 

 

 

592

 

 

 

-

 

 

 

-

 

 

 

1,103

 

 

 

766

 

 

 

-

 

 

 

-

 

 

 

2,461

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

715

 

 

 

-

 

 

 

-

 

 

 

715

 

Total Real Estate - Residential

 

$525

 

 

$2,861

 

 

$3,496

 

 

$1,024

 

 

$9,107

 

 

$14,258

 

 

$1

 

 

$-

 

 

$31,272

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$75,926

 

 

$131,031

 

 

$111,457

 

 

$111,685

 

 

$152,466

 

 

$386,725

 

 

$6,846

 

 

$-

 

 

$976,136

 

Special Mention

 

 

-

 

 

 

-

 

 

 

361

 

 

 

4,867

 

 

 

4,069

 

 

 

17,413

 

 

 

3,264

 

 

 

-

 

 

 

29,974

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,396

 

 

 

415

 

 

 

6,921

 

 

 

-

 

 

 

-

 

 

 

11,732

 

Total Real Estate -Commercial

 

$75,926

 

 

$131,031

 

 

$111,818

 

 

$120,948

 

 

$156,950

 

 

$411,059

 

 

$10,110

 

 

$-

 

 

$1,017,842

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$22,191

 

 

$14,387

 

 

$7,434

 

 

$4,372

 

 

$3,306

 

 

$1,978

 

 

$-

 

 

$-

 

 

$53,668

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

140

 

 

 

46

 

 

 

-

 

 

 

-

 

 

 

186

 

Total Real Estate -Construction

 

$22,191

 

 

$14,387

 

 

$7,434

 

 

$4,372

 

 

$3,446

 

 

$2,024

 

 

$-

 

 

$-

 

 

$53,854

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity LOC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$52,841

 

 

$1,511

 

 

$54,352

 

Special Mention

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

80

 

 

 

-

 

 

 

80

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

856

 

 

 

106

 

 

 

962

 

Total Equity LOC

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$53,777

 

 

$1,617

 

 

$55,394

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$75

 

 

$-

 

 

$75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$124,914

 

 

$179,098

 

 

$152,263

 

 

$145,728

 

 

$195,730

 

 

$459,919

 

 

$108,971

 

 

$1,511

 

 

$1,368,134

 

Special Mention

 

 

1,862

 

 

 

3,075

 

 

 

361

 

 

 

7,365

 

 

 

5,334

 

 

 

23,964

 

 

 

8,333

 

 

 

-

 

 

 

50,294

 

Substandard

 

 

1,274

 

 

 

926

 

 

 

225

 

 

 

8,849

 

 

 

11,009

 

 

 

15,085

 

 

 

2,903

 

 

 

106

 

 

 

40,377

 

Total

 

$128,050

 

 

$183,099

 

 

$152,849

 

 

$161,942

 

 

$212,073

 

 

$498,968

 

 

$120,207

 

 

$1,617

 

 

$1,458,805

 

Current period gross charge-offs

 

$-

 

 

$101

 

 

$6

 

 

$-

 

 

$100

 

 

$2

 

 

$182

 

 

$-

 

 

$391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$-

 

 

$-

 

 

$-

 

 

$11,144

 

 

$9,665

 

 

$4,189

 

 

$-

 

 

$-

 

 

$24,998

 

Non-performing

 

 

-

 

 

 

-

 

 

 

-

 

 

 

131

 

 

 

237

 

 

 

286

 

 

 

-

 

 

 

-

 

 

 

654

 

Total Auto

 

$-

 

 

$-

 

 

$-

 

 

$11,275

 

 

$9,902

 

 

$4,475

 

 

$-

 

 

$-

 

 

$25,652

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$106

 

 

$166

 

 

$181

 

 

$-

 

 

$-

 

 

$453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$3,357

 

 

$4,043

 

 

$4,277

 

 

$1,334

 

 

$1,507

 

 

$45

 

 

$416

 

 

$-

 

 

$14,979

 

Non-performing

 

 

-

 

 

 

20

 

 

 

22

 

 

 

19

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

61

 

Total Other

 

$3,357

 

 

$4,063

 

 

$4,299

 

 

$1,353

 

 

$1,507

 

 

$45

 

 

$416

 

 

$-

 

 

$15,040

 

Current period gross charge-offs

 

$-

 

 

$13

 

 

$5

 

 

$5

 

 

$9

 

 

$4

 

 

$1

 

 

$-

 

 

$37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$3,357

 

 

$4,043

 

 

$4,277

 

 

$12,478

 

 

$11,172

 

 

$4,234

 

 

$416

 

 

$-

 

 

$39,977

 

Non-performing

 

 

-

 

 

 

20

 

 

 

22

 

 

 

150

 

 

 

237

 

 

 

286

 

 

 

-

 

 

 

-

 

 

 

715

 

Total

 

$3,357

 

 

$4,063

 

 

$4,299

 

 

$12,628

 

 

$11,409

 

 

$4,520

 

 

$416

 

 

$-

 

 

$40,692

 

Total Loans

 

$131,407

 

 

$187,162

 

 

$157,148

 

 

$174,570

 

 

$223,482

 

 

$503,488

 

 

$120,623

 

 

$1,617

 

 

$1,499,497

 

Total gross charge-offs

 

$-

 

 

$114

 

 

$11

 

 

$111

 

 

$275

 

 

$187

 

 

$183

 

 

$-

 

 

$881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year and Risk Grades As of December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Revolving Loans Book Amortized Cost Basis

 

 

Revolving Loans Converted to Term Amortized Cost Basis

 

 

Total - Amortized Cost Basis

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$23,877

 

 

$30,424

 

 

$22,262

 

 

$25,867

 

 

$11,871

 

 

$13,150

 

 

$39,108

 

 

$-

 

 

$166,559

 

Special Mention

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

65

 

 

 

-

 

 

 

473

 

 

 

-

 

 

 

538

 

Substandard

 

 

2

 

 

 

-

 

 

 

225

 

 

 

85

 

 

 

754

 

 

 

339

 

 

 

194

 

 

 

-

 

 

 

1,599

 

Total Commercial loans

 

$23,879

 

 

$30,424

 

 

$22,487

 

 

$25,952

 

 

$12,690

 

 

$13,489

 

 

$39,775

 

 

$-

 

 

$168,696

 

Current period gross charge-offs

 

$-

 

 

$114

 

 

$-

 

 

$51

 

 

$-

 

 

$-

 

 

$190

 

 

$-

 

 

$355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$9,045

 

 

$6,893

 

 

$15,988

 

 

$11,829

 

 

$13,875

 

 

$35,349

 

 

$32,117

 

 

$-

 

 

$125,096

 

Special Mention

 

 

285

 

 

 

-

 

 

 

419

 

 

 

1,036

 

 

 

806

 

 

 

4,867

 

 

 

3,365

 

 

 

-

 

 

 

10,778

 

Substandard

 

 

1,165

 

 

 

231

 

 

 

4,246

 

 

 

11,236

 

 

 

2,978

 

 

 

1,323

 

 

 

715

 

 

 

-

 

 

 

21,894

 

Total Agricultural

 

$10,495

 

 

$7,124

 

 

$20,653

 

 

$24,101

 

 

$17,659

 

 

$41,539

 

 

$36,197

 

 

$-

 

 

$157,768

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$11

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$2,634

 

 

$4,189

 

 

$1,810

 

 

$9,315

 

 

$5,825

 

 

$8,980

 

 

$11

 

 

$-

 

 

$32,764

 

Special Mention

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

149

 

 

 

-

 

 

 

-

 

 

 

149

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

229

 

 

 

-

 

 

 

-

 

 

 

229

 

Total Real Estate - Residential

 

$2,634

 

 

$4,189

 

 

$1,810

 

 

$9,315

 

 

$5,825

 

 

$9,358

 

 

$11

 

 

 

-

 

 

$33,142

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate -Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$126,156

 

 

$116,542

 

 

$128,720

 

 

$166,246

 

 

$136,927

 

 

$309,406

 

 

$6,368

 

 

$-

 

 

$990,365

 

Special Mention

 

 

1,183

 

 

 

-

 

 

 

-

 

 

 

238

 

 

 

941

 

 

 

1,756

 

 

 

-

 

 

 

-

 

 

 

4,118

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

368

 

 

 

409

 

 

 

8,684

 

 

 

-

 

 

 

-

 

 

 

9,461

 

Total Real Estate -Commercial

 

$127,339

 

 

$116,542

 

 

$128,720

 

 

$166,852

 

 

$138,277

 

 

$319,846

 

 

$6,368

 

 

$-

 

 

$1,003,944

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate -Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$9,175

 

 

$12,674

 

 

$6,240

 

 

$3,516

 

 

$1,627

 

 

$1,069

 

 

$1,325

 

 

$-

 

 

$35,626

 

Special Mention

 

 

-

 

 

 

-

 

 

 

4,396

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,396

 

Total Real Estate -Construction

 

$9,175

 

 

$12,674

 

 

$10,636

 

 

$3,516

 

 

$1,627

 

 

$1,069

 

 

$1,325

 

 

$-

 

 

$40,022

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity LOC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$51,149

 

 

$2,365

 

 

$53,514

 

Special Mention

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

93

 

 

 

93

 

Substandard

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

887

 

 

 

100

 

 

 

987

 

Total Equity LOC

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$52,036

 

 

$2,558

 

 

$54,594

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$66

 

 

$-

 

 

$66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$170,887

 

 

$170,722

 

 

$175,020

 

 

$216,773

 

 

$170,125

 

 

$367,954

 

 

$130,078

 

 

$2,365

 

 

$1,403,924

 

Special Mention

 

 

1,468

 

 

 

-

 

 

 

4,815

 

 

 

1,274

 

 

 

1,812

 

 

 

6,772

 

 

 

3,838

 

 

 

93

 

 

 

20,072

 

Substandard

 

 

1,167

 

 

 

231

 

 

 

4,471

 

 

 

11,689

 

 

 

4,141

 

 

 

10,575

 

 

 

1,796

 

 

 

100

 

 

 

34,170

 

Total

 

$173,522

 

 

$170,953

 

 

$184,306

 

 

$229,736

 

 

$176,078

 

 

$385,301

 

 

$135,712

 

 

$2,558

 

 

$1,458,166

 

Current period gross charge-offs

 

$-

 

 

$114

 

 

$11

 

 

$51

 

 

$-

 

 

$-

 

 

$256

 

 

$-

 

 

$432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$-

 

 

$-

 

 

$15,923

 

 

$14,577

 

 

$5,613

 

 

$3,161

 

 

$-

 

 

$-

 

 

$39,274

 

Non-performing

 

 

-

 

 

 

-

 

 

 

191

 

 

 

159

 

 

 

233

 

 

 

163

 

 

 

-

 

 

 

-

 

 

 

746

 

Total Auto

 

$-

 

 

$-

 

 

$16,114

 

 

$14,736

 

 

$5,846

 

 

$3,324

 

 

$-

 

 

$-

 

 

$40,020

 

Current period gross charge-offs

 

$-

 

 

$-

 

 

$107

 

 

$219

 

 

$41

 

 

$161

 

 

$-

 

 

$-

 

 

$528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$5,854

 

 

$6,203

 

 

$1,981

 

 

$2,962

 

 

$122

 

 

$24

 

 

$440

 

 

$-

 

 

$17,586

 

Non-performing

 

 

-

 

 

 

21

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

21

 

Total Other

 

$5,854

 

 

$6,224

 

 

$1,981

 

 

$2,962

 

 

$122

 

 

$24

 

 

$440

 

 

$-

 

 

$17,607

 

Current period gross charge-offs

 

$-

 

 

$39

 

 

$46

 

 

$41

 

 

$2

 

 

$7

 

 

$-

 

 

$-

 

 

$135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$5,854

 

 

$6,203

 

 

$17,904

 

 

$17,539

 

 

$5,735

 

 

$3,185

 

 

$440

 

 

$-

 

 

$56,860

 

Non-performing

 

 

-

 

 

 

21

 

 

 

191

 

 

 

159

 

 

 

233

 

 

 

163

 

 

 

-

 

 

 

-

 

 

 

767

 

Total

 

$5,854

 

 

$6,224

 

 

$18,095

 

 

$17,698

 

 

$5,968

 

 

$3,348

 

 

$440

 

 

$-

 

 

$57,627

 

Total Loans

 

$179,376

 

 

$177,177

 

 

$202,401

 

 

$247,434

 

 

$182,046

 

 

$388,649

 

 

$136,152

 

 

$2,558

 

 

$1,515,793

 

Total gross charge-offs

 

$-

 

 

$153

 

 

$164

 

 

$311

 

 

$43

 

 

$168

 

 

$256

 

 

$-

 

 

$1,095

 

 

The following table shows the ending balance of nonperforming loans by loan category as of the date indicated:

 

 

 

Non-Performing Loans

 

($ in thousands)

 

September 30, 2026

 

December 31, 2025

 

 

Nonaccrual with no allowance for credit losses

 

 

Total nonaccrual

 

 

Past due 90 days or more and still accruing

 

 

Nonaccrual with no allowance for credit losses

 

 

Total nonaccrual

 

 

Past due 90 days or more and still accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$835

 

 

$1,026

 

 

$22

 

 

$458

 

 

$611

 

 

$-

 

Agricultural

 

 

7,811

 

 

 

11,970

 

 

 

44

 

 

 

7,157

 

 

 

10,509

 

 

 

-

 

Real estate – residential

 

 

208

 

 

 

208

 

 

 

-

 

 

 

215

 

 

 

215

 

 

 

-

 

Real estate – commercial

 

 

3,947

 

 

 

6,015

 

 

 

-

 

 

 

2,000

 

 

 

2,000

 

 

 

-

 

Real estate – construction & land development

 

 

186

 

 

 

186

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Equity lines of credit

 

 

961

 

 

 

961

 

 

 

-

 

 

 

988

 

 

 

988

 

 

 

-

 

Auto

 

 

654

 

 

 

654

 

 

 

-

 

 

 

745

 

 

 

745

 

 

 

-

 

Other

 

 

42

 

 

 

42

 

 

 

-

 

 

 

21

 

 

 

21

 

 

 

-

 

Total Gross Loans

 

$14,644

 

 

$21,062

 

 

$66

 

 

$11,584

 

 

$15,089

 

 

$-

 

 

The Company places loans 90 days or more past due on nonaccrual status unless the loan is well-collateralized and in the process of collection. A loan is considered to be in the process of collection if, based on a probable specific event, it is expected that the loan will be repaid or brought current. Generally, this collection period would not exceed 90 days. When a loan is placed on nonaccrual status the Company's general policy is to reverse and charge against current income previously accrued but unpaid interest. Interest income on such loans is subsequently recognized only to the extent that cash is received, and future collection of principal is deemed by management to be probable. Where the collectability of the principal or interest on a loan is considered to be doubtful by management, it is placed on nonaccrual status prior to becoming 90 days delinquent.

 

No income was recognized on nonaccrual loans accounted on a cash basis during the three and nine months ended September 30, 2026 and 2025. The following tables show interest reversed against interest income for loans placed on nonaccrual status during the three and nine months ended September 30, 2026 and 2025. 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 
September 30, 2026

 

 
September 30, 2025

 

Commercial

 
$
-

 

 
$
17

 

Agricultural

 

 
-

 

 

 
41

 

Real estate – residential

 

 
-

 

 

 
1

 

Real estate – commercial

 

 
-

 

 

 
2

 

Real estate – construction & land development

 

 

4

 

 

 

-

 

Equity lines of credit

 

 
2

 

 

 
3

 

Auto

 

 
2

 

 

 
7

 

Other

 

 
1

 

 

 
-

 

Total

 
$

9

 

 
$
71

 

 

 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 
September 30, 2026

 

 
September 30, 2025

 

Commercial

 
$
49

 

 
$
28

 

Agricultural

 

 
156

 

 

 
381

 

Real estate – residential

 

 
-

 

 

 
1

 

Real estate – commercial

 

 
162

 

 

 
7

 

Real estate – construction & land development

 

 

4

 

 

 

-

 

Equity lines of credit

 

 
15

 

 

 
18

 

Auto

 

 
8

 

 

 
14

 

Other

 

 
2

 

 

 
1

 

Total

 
$
396

 

 
$
450

 

 

The following table presents the amortized cost basis of loans at  September 30, 2026, that were both experiencing financial difficulty and modified during the three months ended  September 30, 2026, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.

 

​

​

Term Extension

​

($ in thousands)

​

Amortized Cost Basis

​

​

Total Class of Financing Receivable

​

Commercial

​

$

753

​

​

​

0.05

%

Agricultural

​

​

355

​

​

​

0.02

%

Real estate – commercial

​

​

3,268

​

​

​

0.22

%

Real estate - construction & land

​

​

3,136

​

​

​

0.21

%

Total

​

$

7,512

​

​

​

0.50

%

 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of  September 30, 2026:

 

 

 

Weighted-Average Term Extension (in months)

 

Commercial

 

 

12.0

 

Agricultural

 

 

12.0

 

Real estate – commercial

 

 

6.0

 

Real estate - construction & land

 

 

8.0

 

Total

 

 

7.7

 

 

The following table presents the amortized cost basis of loans at  September 30, 2026, that were both experiencing financial difficulty and modified during the nine months ended  September 30, 2026, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.

 

 

 

Term Extension

 

($ in thousands)

 

Amortized Cost Basis

 

 

Total Class of Financing Receivable

 

Commercial

 

$1,580

 

 

 

0.11%

Agricultural

 

 

355

 

 

 

0.02%

Real estate – commercial

 

 

3,806

 

 

 

0.25%

Real estate - construction & land

 

 

3,136

 

 

 

0.21%

Total

 

$8,877

 

 

 

0.59%

 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of  September 30, 2026:

 

​

​

Weighted-Average Term Extension (in months)

​

Commercial

​

​

8.9

​

Agricultural

​

​

12.0

​

Real estate – commercial

​

​

17.0

​

Real estate - construction & land

​

​

8.0

​

Total

​

​

12.2

​

 

The following table presents the amortized cost basis of loans at  September 30, 2025, that were both experiencing financial difficulty and modified during the three months ended  September 30, 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below. 

 

 

 

Term Extension

 

($ in thousands)

 

Amortized Cost Basis

 

 

Total Class of Financing Receivable

 

Agricultural

 

 

2,232

 

 

 

1.45%

Real estate – commercial

 

 

76

 

 

 

0.01%

Total

 

$2,308

 

 

 

0.15%

 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of  September 30, 2025:

 

 

 

Weighted-Average Term Extension (in months)

 

Agricultural

 

 

5.0

 

Real estate – commercial

 

 

24.0

 

Total

 

 

5.6

 

 

The following table presents the amortized cost basis of loans at  September 30, 2025, that were both experiencing financial difficulty and modified during the nine months ended  September 30, 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below. 

 

​

​

Term Extension

​

($ in thousands)

​

Amortized Cost Basis

​

​

Total Class of Financing Receivable

​

Agricultural

​

$

7,105

​

​

​

4.60

%

Real estate – commercial

​

​

848

​

​

​

0.09

%

Total

​

$

7,953

​

​

​

0.53

%

 

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of  September 30, 2025:

 

​

​

Weighted-Average Term Extension (in months)

​

Agricultural

​

​

5.3

​

Real estate – commercial

​

​

4.9

​

Total

​

​

5.3

​

 

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. The Company also monitors the performance of loans modified for borrowers experiencing financial difficulty to assess the effectiveness of its modification efforts. All loans modified for borrowers experiencing financial difficulty within the previous twelve months were performing in accordance with their modified terms during the nine months ended  September 30, 2026. Loans with payment defaults by borrowers experiencing financial difficulty during the nine months ended  September 30, 2025, which had material modifications in rate, term or principal forgiveness during the twelve months prior to default consisted of $9.1 million in agricultural loans. 

 

The following tables show the allocation of the allowance for credit losses at the dates indicated, in thousands:

 

Nine Months Ended September 30, 2026:

 

Commercial

 

 

Agricultural

 

 

Real Estate-Residential

 

 

Real Estate-Commercial

 

 

Real Estate-Construction

 

 

Equity LOC

 

 

Auto

 

 

Other

 

 

Total

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,246

 

 

$3,973

 

 

$258

 

 

$10,605

 

 

$514

 

 

$502

 

 

$591

 

 

$270

 

 

$19,959

 

Charge-offs

 

 

(310)

 

 

(6)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(75)

 

 

(453)

 

 

(37)

 

 

(881)

Recoveries

 

 

67

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

227

 

 

 

20

 

 

 

314

 

Provision for (recovery of) credit losses

 

 

15

 

 

 

895

 

 

 

(45)

 

 

(298)

 

 

(222)

 

 

42

 

 

 

7

 

 

 

(44)

 

 

350

 

Ending balance

 

$3,018

 

 

$4,862

 

 

$213

 

 

$10,307

 

 

$292

 

 

$469

 

 

$372

 

 

$209

 

 

$19,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2026:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$3,117

 

 

$4,525

 

 

$216

 

 

$10,401

 

 

$360

 

 

$475

 

 

$434

 

 

$212

 

 

$19,740

 

Charge-offs

 

 

(108)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(100)

 

 

(10)

 

 

(218)

Recoveries

 

 

15

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

50

 

 

 

5

 

 

 

70

 

Provision for (recovery of) credit losses

 

 

(6

)

 

 

337

 

 

 

(3)

 

 

(94

)

 

 

(68

)

 

 

(6

)

 

 

(12)

 

 

2

 

 

 

150

 

Ending balance

 

$3,018

 

 

$4,862

 

 

$213

 

 

$10,307

 

 

$292

 

 

$469

 

 

$372

 

 

$209

 

 

$19,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$1,265

 

 

$1,802

 

 

$102

 

 

$7,459

 

 

$815

 

 

$460

 

 

$1,215

 

 

$78

 

 

$13,196

 

Charge-offs

 

 

(190)

 

 

(11)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(19

)

 

 

(408)

 

 

(102)

 

 

(730)

Recoveries

 

 

22

 

 

 

-

 

 

 

49

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

430

 

 

 

10

 

 

 

511

 

Initial allowance on acquired PCD loans

 

 

58

 

 

 

31

 

 

 

 

 

 

226

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

315

 

Provision for (recovery of) credit losses

 

 

1,321

 

 

 

1,434

 

 

 

114

 

 

 

3,394

 

 

 

(89)

 

 

159

 

 

 

(398)

 

 

337

 

 

 

6,272

 

Ending balance

 

$2,476

 

 

$3,256

 

 

$265

 

 

$11,079

 

 

$726

 

 

$600

 

 

$839

 

 

$323

 

 

$19,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$1,397

 

 

$2,657

 

 

$110

 

 

$7,742

 

 

$694

 

 

$562

 

 

$955

 

 

$92

 

 

$14,209

 

Charge-offs

 

 

(25

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(19

)

 

 

(157)

 

 

(23)

 

 

(224)

Recoveries

 

 

11

 

 

 

-

 

 

 

47

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

80

 

 

 

3

 

 

 

141

 

Initial allowance on acquired PCD loans

 

 

58

 

 

 

31

 

 

 

-

 

 

 

226

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

315

 

Provision for (recovery of) credit losses

 

 

1,035

 

 

 

568

 

 

 

108

 

 

 

3,111

 

 

 

32

 

 

 

57

 

 

 

(39)

 

 

251

 

 

 

5,123

 

Ending balance

 

$2,476

 

 

$3,256

 

 

$265

 

 

$11,079

 

 

$726

 

 

$600

 

 

$839

 

 

$323

 

 

$19,564

 

 

The following tables summarize the activity in the reserve for unfunded commitments, which is recorded on the balance sheet within other liabilities, for the three and nine months ended September 30, 2026 and 2025.

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 
September 30, 2026

 

 
September 30, 2025

 

Beginning balance

 
$
650

 

 
$
580

 

    Provision on acquired loan commitments

 

 

-

 

 

 

351

 

Provision for credit losses

 

 
-

 

 

 
(100
)

Ending balance

 
$
650

 

 
$
831

 

  

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 
September 30, 2026

 

 
September 30, 2025

 

Beginning balance

 
$
580

 

 
$
620

 

Provision on acquired loan commitments

 

 

-

 

 

 

351

 

Provision for credit losses

 

 
70

 

 

 

(140
)

Ending balance

 
$
650

 

 
$
831

 

  

The following tables show an aging analysis of the loan portfolio by the time past due:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

90 Days

 

 

 

 

 

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

30-59 Days

 

 

60-89 Days

 

 

and Still

 

 

 

 

 

 

and

 

 

 

 

 

 

 

 

 

September 30, 2026

 

Past Due

 

 

Past Due

 

 

Accruing

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Current

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$1,299

 

 

$645

 

 

$22

 

 

$1,026

 

 

$2,992

 

 

$157,842

 

 

$160,834

 

Agricultural

 

 

-

 

 

 

3,129

 

 

 

45

 

 

 

11,970

 

 

 

15,144

 

 

 

124,465

 

 

 

139,609

 

Real estate – residential

 

 

-

 

 

 

13

 

 

 

-

 

 

 

208

 

 

 

221

 

 

 

31,051

 

 

 

31,272

 

Real estate – commercial

 

 

1,574

 

 

 

-

 

 

 

-

 

 

 

6,015

 

 

 

7,589

 

 

 

1,010,253

 

 

 

1,017,842

 

Real estate - construction & land

 

 

-

 

 

 

2,109

 

 

 

-

 

 

 

186

 

 

 

2,295

 

 

 

51,559

 

 

 

53,854

 

Equity Lines of Credit

 

 

842

 

 

 

486

 

 

 

-

 

 

 

961

 

 

 

2,289

 

 

 

53,105

 

 

 

55,394

 

Auto

 

 

644

 

 

 

40

 

 

 

-

 

 

 

654

 

 

 

1,338

 

 

 

24,314

 

 

 

25,652

 

Other

 

 

109

 

 

 

-

 

 

 

-

 

 

 

42

 

 

 

151

 

 

 

14,889

 

 

 

15,040

 

Total

 

$4,468

 

 

$6,422

 

 

$67

 

 

$21,062

 

 

$32,019

 

 

$1,467,478

 

 

$1,499,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

90 Days

 

 

 

 

 

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

30-59 Days

 

 

60-89 Days

 

 

and Still

 

 

 

 

 

 

and

 

 

 

 

 

 

 

 

 

December 31, 2025

 

Past Due

 

 

Past Due

 

 

Accruing

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Current

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$2,809

 

 

$572

 

 

$-

 

 

$611

 

 

$3,992

 

 

$164,704

 

 

$168,696

 

Agricultural

 

 

395

 

 

 

-

 

 

 

-

 

 

 

10,509

 

 

 

10,904

 

 

 

146,864

 

 

 

157,768

 

Real estate – residential

 

 

15

 

 

 

-

 

 

 

-

 

 

 

215

 

 

 

230

 

 

 

32,912

 

 

 

33,142

 

Real estate - commercial

 

 

1,160

 

 

 

-

 

 

 

-

 

 

 

2,000

 

 

 

3,160

 

 

 

1,000,784

 

 

 

1,003,944

 

Real estate - construction & land

 

 

1,466

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,466

 

 

 

38,556

 

 

 

40,022

 

Equity Lines of Credit

 

 

835

 

 

 

191

 

 

 

-

 

 

 

988

 

 

 

2,014

 

 

 

52,580

 

 

 

54,594

 

Auto

 

 

943

 

 

 

159

 

 

 

-

 

 

 

745

 

 

 

1,847

 

 

 

38,173

 

 

 

40,020

 

Other

 

 

45

 

 

 

1

 

 

 

-

 

 

 

21

 

 

 

67

 

 

 

17,540

 

 

 

17,607

 

Total

 

$7,668

 

 

$923

 

 

$-

 

 

$15,089

 

 

$23,680

 

 

$1,492,113

 

 

$1,515,793

 

  

The following tables present the amortized cost basis of collateral dependent loans by class of loans at  September 30, 2026:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial -1st

 

 

SFR-1st

 

 

SFR-2nd

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Equipment

 

 

Crops

 

 

Livestock

 

 

Farmland

 

 

Deed

 

 

Deed

 

 

Deed

 

 

Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$225

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$287

 

 

$532

 

 

$1,044

 

Agricultural

 

 

109

 

 

 

4,471

 

 

 

225

 

 

 

648

 

 

 

2,241

 

 

 

4,171

 

 

 

-

 

 

 

-

 

 

 

11,865

 

Real estate – residential

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

145

 

 

 

-

 

 

 

-

 

 

 

145

 

Real estate – commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,628

 

 

 

-

 

 

 

-

 

 

 

27

 

 

 

5,655

 

Real estate – construction & land

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

140

 

 

 

140

 

Equity Lines of Credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

102

 

 

 

216

 

 

 

-

 

 

 

318

 

Total

 

$334

 

 

$4,471

 

 

$225

 

 

$648

 

 

$7,869

 

 

$4,418

 

 

$503

 

 

$699

 

 

$19,167

 

 

The following tables present the amortized cost basis of collateral dependent loans by class of loans at  December 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial -1st

 

 

SFR-1st

 

 

SFR-2nd

 

 

SFR-3rd

 

 

 

 

 

($ in thousands)

 

Equipment

 

 

Crops

 

 

Livestock

 

 

Farmland

 

 

Deed

 

 

Deed

 

 

Deed

 

 

Deed

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$111

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$161

 

 

$-

 

 

$-

 

 

$272

 

Agricultural

 

 

-

 

 

 

4,873

 

 

 

225

 

 

 

2,749

 

 

 

2,241

 

 

 

311

 

 

 

-

 

 

 

-

 

 

 

10,399

 

Real estate – residential

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

145

 

 

 

-

 

 

 

-

 

 

 

145

 

Real estate – commercial

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,399

 

 

 

245

 

 

 

112

 

 

 

37

 

 

 

1,793

 

Equity Lines of Credit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

398

 

 

 

-

 

 

 

398

 

Total

 

$111

 

 

$4,873

 

 

$225

 

 

$2,749

 

 

$3,640

 

 

$862

 

 

$510

 

 

$37

 

 

$13,007

 

  

Other Real Estate Owned

Other real estate owned relates to real estate acquired in full or partial settlement of loan obligations. Other real estate owned totaled $135,000 at  September 30, 2026 and consisted of one single family residential real estate (SFR) property, compared to $226,000 at  December 31, 2025, which consisted of two SFR properties. During the  nine months ended  September 30, 2026, the Company sold one property, recognizing a gain of $104,000.

 

There was one agricultural loan with a balance of $2,000,000 secured by equipment, farmland and a small residential real estate property for which formal foreclosure proceedings were in process at  September 30, 2026 and  December 31, 2025.