Note 3 - Loans Receivable

9 Months Ended

Sep. 30, 2026

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 3. LOANS RECEIVABLE

Loans receivable consisted of the following:

		September 30,				December 31,
		2026				2025
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	199,226			$	183,793
Commercial real estate			1,061,474				918,839

Other loans:
Home equity			115,937				108,073
Consumer			21,096				24,424
Commercial			319,645				283,890

Total loans			1,717,378				1,519,019

Allowance for credit losses			(19,490	)			(17,370	)
Total loans, net		$	1,697,888			$	1,501,649
Deferred fees, net included in total loans		$	(3,487	)		$	(3,619	)

Guaranteed loans by U.S. government agencies totaling $14,556,000 and $12,091,000 at September 30, 2026 and December 31, 2025, respectively, are included in loan categories above.

The following table provides allowance for credit losses activity for the three months ended September 30, 2026.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, July 1, 2026		$	1,758			$	11,620			$	563			$	195			$	3,504			$	17,640
Charge-offs			-				-				-				(37	)			-				(37	)
Recoveries			-				5				-				1				2				8
Provision			132				1,213				16				8				510				1,879
Total ending allowance balance, September 30, 2026		$	1,890			$	12,838			$	579			$	167			$	4,016			$	19,490

The following table provides allowance for credit losses activity for the nine months ended September 30, 2026.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, January 1, 2026		$	1,965			$	11,295			$	547			$	84			$	3,479			$	17,370
Charge-offs			-				-				-				(175	)			(117	)			(292	)
Recoveries			-				14				-				2				5				21
(Recapture) provision			(75	)			1,529				32				256				649				2,391
Total ending allowance balance, September 30, 2026		$	1,890			$	12,838			$	579			$	167			$	4,016			$	19,490

The following table provides allowance for credit losses activity for the three months ended September 30, 2025.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, July 1, 2025		$	2,005			$	11,422			$	539			$	222			$	3,542			$	17,730
Charge-offs			-				(33	)			-				(41	)			(6	)			(80	)
Recoveries			-				4				-				3				1				8
Provision			10				41				1				1				29				82
Total ending allowance balance, September 30, 2025		$	2,015			$	11,434			$	540			$	185			$	3,566			$	17,740

The following table provides allowance for credit losses activity for the nine months ended September 30, 2025.

		Residential				Commercial				Home
		1-4 Family				Real Estate				Equity				Consumer				Commercial				Total
		(In Thousands)
Allowance for credit losses on loans:
Beginning balance, January 1, 2025		$	1,911			$	10,907			$	553			$	245			$	3,234			$	16,850
Charge-offs			-				(33	)			(27	)			(71	)			(6	)			(137	)
Recoveries			-				9				-				4				2				15
Provision			104				551				14				7				336				1,012
Total ending allowance balance, September 30, 2025		$	2,015			$	11,434			$	540			$	185			$	3,566			$	17,740

Internal classification of the loan portfolio by amortized cost and based on year originated was as follows:

		September 30, 2026
		2026				2025				2024				2023				2022				Prior				Revolving Loans				Total Loans
		(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass		$	22,729			$	14,094			$	12,213			$	18,581			$	22,407			$	49,158			$	30			$	139,212
Special Mention			-				-				-				-				-				114				-				114
Substandard			-				-				-				-				1,035				664				-				1,699
Total Residential 1-4 family			22,729				14,094				12,213				18,581				23,442				49,936				30				141,025
Current-period gross charge-offs			-				-				-				-				-				-				-				-
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass			29,966				11,480				-				-				10,129				-				6,277				57,852
Special Mention			-				-				349				-				-				-				-				349
Total Residential 1-4 family construction			29,966				11,480				349				-				10,129				-				6,277				58,201
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL REAL ESTATE
Pass			160,642				50,819				65,906				58,454				167,292				223,668				46,705				773,486
Special Mention			-				92				-				780				372				2,086				2,914				6,244
Substandard			-				-				-				474				-				4,502				-				4,976
Total Commercial real estate			160,642				50,911				65,906				59,708				167,664				230,256				49,619				784,706
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass			11,765				37,841				11,105				7,014				11,557				16,835				6,062				102,179
Special Mention			-				736				-				746				-				-				-				1,482
Substandard			-				-				-				-				-				897				-				897
Total Commercial construction and development			11,765				38,577				11,105				7,760				11,557				17,732				6,062				104,558
Current-period gross charge-offs			-				-				-				-				-				-				-				-
FARMLAND
Pass			24,332				26,555				18,669				13,614				25,120				53,880				1,275				163,445
Special Mention			1,875				-				-				1,082				-				420				-				3,377
Substandard			-				798				200				-				1,119				2,653				618				5,388
Total Farmland			26,207				27,353				18,869				14,696				26,239				56,953				1,893				172,210
Current-period gross charge-offs			-				-				-				-				-				-				-				-
HOME EQUITY
Pass			7,346				1,776				1,141				849				567				1,683				102,261				115,623
Special Mention			-				-				-				-				-				-				93				93
Substandard			-				-				-				-				-				20				201				221
Total Home Equity			7,346				1,776				1,141				849				567				1,703				102,555				115,937
Current-period gross charge-offs			-				-				-				-				-				-				-				-
CONSUMER
Pass			6,074				5,060				3,484				2,278				1,326				681				2,049				20,952
Special Mention			-				-				-				-				-				-				19				19
Substandard			-				64				6				46				-				-				9				125
Total Consumer			6,074				5,124				3,490				2,324				1,326				681				2,077				21,096
Current-period gross charge-offs			-				76				52				34				10				-				3				175
COMMERCIAL
Pass			46,742				25,826				20,909				15,760				6,896				18,674				37,610				172,417
Special Mention			176				-				-				278				131				-				213				798
Substandard			-				67				1,133				273				-				106				125				1,704
Doubtful			-				82				-				-				-				-				-				82
Total Commercial			46,918				25,975				22,042				16,311				7,027				18,780				37,948				175,001
Current-period gross charge-offs			-				-				63				40				-				14				-				117
AGRICULTURAL
Pass			25,622				17,529				7,954				4,243				2,988				1,675				77,413				137,424
Special Mention			2,734				261				406				-				-				-				493				3,894
Substandard			475				759				-				1,248				-				844				-				3,326
Total Agricultural			28,831				18,549				8,360				5,491				2,988				2,519				77,906				144,644
Current-period gross charge-offs			-				-				-				-				-				-				-				-
TOTAL LOANS
Pass			335,218				190,980				141,381				120,793				248,282				366,254				279,682				1,682,590
Special Mention			4,785				1,089				755				2,886				503				2,620				3,732				16,370
Substandard			475				1,688				1,339				2,041				2,154				9,686				953				18,336
Doubtful			-				82				-				-				-				-				-				82
Total		$	340,478			$	193,839			$	143,475			$	125,720			$	250,939			$	378,560			$	284,367			$	1,717,378

		December 31, 2025
		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total Loans
		(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass		$	20,044			$	15,428			$	22,525			$	29,851			$	17,751			$	40,339			$	1,333			$	147,271
Substandard			-				-				-				719				-				525				-				1,244
Total Residential 1-4 family			20,044				15,428				22,525				30,570				17,751				40,864				1,333				148,515
Current-period gross charge-offs			-				-				-				-				-				-				-				-
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass			19,065				3,975				1,760				10,129				-				-				-				34,929
Special Mention			-				349				-				-				-				-				-				349
Total Residential 1-4 family construction			19,065				4,324				1,760				10,129				-				-				-				35,278
Current-period gross charge-offs			-				-				-				-				-				-				-				-
COMMERCIAL REAL ESTATE
Pass			41,530				51,964				63,566				177,502				112,350				141,336				39,155				627,403
Special Mention			-				-				-				407				-				1,265				2,989				4,661
Substandard			-				-				512				-				424				2,970				-				3,906
Total Commercial real estate			41,530				51,964				64,078				177,909				112,774				145,571				42,144				635,970
Current-period gross charge-offs			-				-				-				-				-				33				-				33
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass			44,051				26,041				9,483				14,272				7,325				11,853				6,339				119,364
Substandard			-				-				-				-				-				925				-				925
Total Commercial construction and development			44,051				26,041				9,483				14,272				7,325				12,778				6,339				120,289
Current-period gross charge-offs			-				-				-				-				-				-				-				-
FARMLAND
Pass			30,610				19,993				16,219				26,109				17,580				45,784				1,961				158,256
Special Mention			-				-				827				570				62				719				-				2,178
Substandard			-				188				55				1,118				-				729				56				2,146
Total Farmland			30,610				20,181				17,101				27,797				17,642				47,232				2,017				162,580
Current-period gross charge-offs			-				-				-				-				-				-				-				-
HOME EQUITY
Pass			2,162				1,218				1,018				2,804				281				2,227				97,660				107,370
Special Mention			-				-				-				-				-				21				348				369
Substandard			-				-				33				-				40				11				250				334
Total Home Equity			2,162				1,218				1,051				2,804				321				2,259				98,258				108,073
Current-period gross charge-offs			-				1				-				-				-				26				-				27
CONSUMER
Pass			9,069				5,536				3,899				2,312				654				670				1,973				24,113
Special Mention			-				-				6				-				-				-				-				6
Substandard			113				59				92				10				-				16				15				305
Total Consumer			9,182				5,595				3,997				2,322				654				686				1,988				24,424
Current-period gross charge-offs			-				17				47				14				-				83				14				175
COMMERCIAL
Pass			27,402				26,864				19,468				13,647				10,284				15,376				34,160				147,201
Special Mention			-				-				311				164				-				-				347				822
Substandard			92				1,111				41				-				18				142				4				1,408
Total Commercial			27,494				27,975				19,820				13,811				10,302				15,518				34,511				149,431
Current-period gross charge-offs			-				-				-				6				-				-				-				6
AGRICULTURAL
Pass			42,889				15,230				7,802				5,210				2,415				2,501				52,014				128,061
Special Mention			442				1,112				1,590				2				17				626				543				4,332
Substandard			-				1,035				824				-				-				207				-				2,066
Total Agricultural			43,331				17,377				10,216				5,212				2,432				3,334				52,557				134,459
Current-period gross charge-offs			-				-				-				-				-				-				-				-
TOTAL LOANS
Pass			236,822				166,249				145,740				281,836				168,640				260,086				234,595				1,493,968
Special Mention			442				1,461				2,734				1,143				79				2,631				4,227				12,717
Substandard			205				2,393				1,557				1,847				482				5,525				325				12,334
Total		$	237,469			$	170,103			$	150,031			$	284,826			$	169,201			$	268,242			$	239,147			$	1,519,019

The following tables include information regarding delinquencies within the loan portfolio.

		September 30, 2026
		Loans Past Due and Still Accruing
						90 Days								Nonaccrual				Nonaccrual
		30-89 Days				and								Loans with				Loans with				Current				Total
		Past Due				Greater				Total				no ACL				ACL				Loans				Loans
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	1,229			$	325			$	1,554			$	274			$	-			$	139,197			$	141,025
Residential 1-4 family construction			-				-				-				-				-				58,201				58,201
Commercial real estate			91				-				91				420				-				784,195				784,706
Commercial construction and development			2,468				-				2,468				1				-				102,089				104,558
Farmland			-				992				992				4,420				-				166,798				172,210
Other loans:
Home equity			436				-				436				303				-				115,198				115,937
Consumer			245				14				259				44				26				20,767				21,096
Commercial			599				-				599				200				86				174,116				175,001
Agricultural			692				606				1,298				992				-				142,354				144,644
Total		$	5,760			$	1,937			$	7,697			$	6,654			$	112			$	1,702,915			$	1,717,378

		December 31, 2025
		Loans Past Due and Still Accruing
						90 Days								Nonaccrual				Nonaccrual
		30-89 Days				and								Loans with				Loans with				Current				Total
		Past Due				Greater				Total				no ACL				ACL				Loans				Loans
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	1,591			$	48			$	1,639			$	298			$	-			$	146,578			$	148,515
Residential 1-4 family construction			-				-				-				-				-				35,278				35,278
Commercial real estate			660				-				660				420				-				634,890				635,970
Commercial construction and development			213				-				213				1				-				120,075				120,289
Farmland			481				841				1,322				308				-				160,950				162,580
Other loans:
Home equity			637				-				637				395				-				107,041				108,073
Consumer			203				-				203				101				109				24,011				24,424
Commercial			557				10				567				183				96				148,585				149,431
Agricultural			168				2,645				2,813				177				-				131,469				134,459
Total		$	4,510			$	3,544			$	8,054			$	1,883			$	205			$	1,508,877			$	1,519,019

Interest income recognized on nonaccrual loans for the three and nine months ended September 30, 2026 and 2025 is considered insignificant. Nonaccrual loan interest payments received and applied to principal were $226,000 at September 30, 2026 and $262,000 at December 31, 2025.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans and collateral type.

		September 30, 2026
		Real Estate				Business Assets				Other
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	1,558			$	-			$	-
Commercial real estate			91				420				-
Commercial construction and development			1				-				-
Farmland			5,181				-				-
Other loans:
Home equity			180				-				-
Consumer			-				-				42
Commercial			-				814				4
Agricultural			25				2,053				-
Total		$	7,036			$	3,287			$	46

		December 31, 2025
		Real Estate				Business Assets				Other
		(In Thousands)
Real estate loans:
Residential 1-4 family		$	822			$	-			$	-
Commercial real estate			97				492				-
Commercial construction and development			1				-				-
Farmland			1,143				-				-
Other loans:
Home equity			278				-				-
Consumer			-				-				202
Commercial			-				482				14
Agricultural			-				2,645				-
Total		$	2,341			$	3,619			$	216

The Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, term extensions, other than insignificant payment delays, or any combination of these.

The following tables include the amortized cost basis at the period end for the loans modified to borrowers experiencing financial difficulty.

		As of or For the
		Three Months Ended
		September 30, 2026
		Term Extension and Payment Deferral								Term Extension and Interest Rate Reduction
		Amortized Cost Basis				Percent of Loan Category				Amortized Cost Basis				Percent of Loan Category				Total Amortized Cost Basis				Total Number of Loans
		(Dollars in Thousands)
Real estate loans:
Farmland		$	-				0.00	%		$	220				0.13	%		$	220				1
Total		$	-							$	220							$	220				1

		As of or For the
		Three Months Ended
		September 30, 2025
		Term Extension and Payment Deferral								Term Extension and Interest Rate Reduction
		Amortized Cost Basis				Percent of Loan Category				Amortized Cost Basis				Percent of Loan Category				Total Amortized Cost Basis				Total Number of Loans
		(Dollars in Thousands)
Other loans:
Home equity		$	260				0.24	%		$	-				0.00	%		$	260				3
Commercial			150				0.11				-				0.00				150				1
Total		$	410							$	-							$	410				4

		As of or For the
		Nine Months Ended
		September 30, 2026
		Term Extension and Payment Deferral								Term Extension and Interest Rate Reduction
		Amortized Cost Basis				Percent of Loan Category				Amortized Cost Basis				Percent of Loan Category				Total Amortized Cost Basis				Total Number of Loans
		(Dollars in Thousands)
Real estate loans:
Farmland		$	-				0.00	%		$	220				0.13	%		$	220				1
Other loans:
Agricultural			156				0.11				-				0.00				156				1
Total		$	156							$	220							$	376				2

		As of or For the
		Nine Months Ended
		September 30, 2025
		Term Extension and Payment Deferral								Term Extension and Interest Rate Reduction
		Amortized Cost Basis				Percent of Loan Category				Amortized Cost Basis				Percent of Loan Category				Total Amortized Cost Basis				Total Number of Loans
		(Dollars in Thousands)
Real estate loans:
Residential 1-4 family		$	625				0.42	%		$	-				0.00	%		$	625				1
Commercial real estate			-				0.00				191				0.03				191				1
Other loans:
Home equity			373				0.35				-				0.00				373				5
Commercial			150				0.11				-				0.00				150				1
Agricultural			177				0.11				-				0.00				177				2
Total		$	1,325							$	191							$	1,516				10

During the three and nine months ended September 30, 2026 and 2025, no loans modified for borrowers experiencing financial difficulty within the previous twelve months experienced a payment default.