Note 4 - Loans

9 Months Ended

Sep. 30, 2026

Notes to Financial Statements

Financing Receivables [Text Block]

Loans:

Loan balances were as follows:

(In Thousands of Dollars)		*September 30, 2026*				*December 31, 2025*
Commercial real estate
Owner occupied		$	631,940			$	393,061
Non-owner occupied			1,038,674				710,468
Farmland			225,046				211,370
Other			388,143				294,587
Commercial
Commercial and industrial			598,720				340,224
Agricultural			58,344				54,195
Residential real estate
1-4 family residential			1,238,920				850,300
Home equity lines of credit			372,256				181,544
Consumer
Indirect			255,107				231,242
Direct			21,235				16,483
Other			12,463				10,070
Total loans		$	4,840,848			$	3,293,544
Net deferred loan costs			13,970				11,169
Allowance for credit losses			(53,531	)			(36,811	)
Net loans		$	4,801,287			$	3,267,902

Allowance for credit loss activity

The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine month periods ended September 30, 2026 and 2025:

Three Months Ended September 30, 2026

		Commercial								Residential
(In Thousands of Dollars)		Real Estate				Commercial				Real Estate				Consumer				Total
Allowance for credit losses
Beginning balance		$	28,671			$	7,950			$	11,052			$	5,612			$	53,285
(Credit) Provision for credit losses			1,697				159				174				732				2,762
Initial allowance on purchased seasoned loans			25				85				0				0				110
Loans charged off			(2,319	)			(49	)			(67	)			(471	)			(2,906	)
Recoveries			0				92				23				165				280
Total ending allowance balance		$	28,074			$	8,237			$	11,182			$	6,038			$	53,531

Nine Months Ended September 30, 2026

		Commercial								Residential
(In Thousands of Dollars)		Real Estate				Commercial				Real Estate				Consumer				Total
Allowance for credit losses
Beginning balance		$	20,064			$	4,536			$	7,241			$	4,970			$	36,811
(Credit) Provision for credit losses			1,673				377				(70	)			1,843				3,823
Initial allowance on loans purchased with credit deterioration			3,418				630				15				0				4,063
Initial allowance on purchased seasoned loans			8,364				2,961				4,102				110				15,537
Loans charged off			(5,445	)			(528	)			(219	)			(1,246	)			(7,438	)
Recoveries			0				261				113				361				735
Total ending allowance balance		$	28,074			$	8,237			$	11,182			$	6,038			$	53,531

Three Months Ended September 30, 2025

		Commercial								Residential
(In Thousands of Dollars)		Real Estate				Commercial				Real Estate				Consumer				Total
Allowance for credit losses
Beginning balance		$	21,627			$	4,973			$	7,210			$	4,753			$	38,563
(Credit) Provision for credit losses			1,428				(204	)			127				150				1,501
Loans charged off			(75	)			(319	)			(154	)			(321	)			(869	)
Recoveries			0				176				25				132				333
Total ending allowance balance		$	22,980			$	4,626			$	7,208			$	4,714			$	39,528

Nine Months Ended September 30, 2025

		Commercial								Residential
(In Thousands of Dollars)		Real Estate				Commercial				Real Estate				Consumer				Total
Allowance for credit losses
Beginning balance		$	19,259			$	4,628			$	7,271			$	4,705			$	35,863
(Credit) Provision for credit losses			3,840				572				84				613				5,109
Loans charged off			(141	)			(973	)			(231	)			(970	)			(2,315	)
Recoveries			22				399				84				366				871
Total ending allowance balance		$	22,980			$	4,626			$	7,208			$	4,714			$	39,528

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from December 31, 2011 to September 30, 2026. As of September 30, 2026, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, stable trend in unemployment rate, and an increased trend of delinquencies. Management adjusted historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from September 30, 2025 to September 30, 2026, is largely attributed to the Middlefield Merger. The increase related to the Middlefield Merger was partially offset by charge offs related to the settlement or sale of the debt or collateral associated with three commercial real estate non-owner occupied relationships, and one multifamily relationship.

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2026 and December 31, 2025:

		Nonaccrual with				Nonaccrual with				Loans past due
		no allowance				an allowance				over 89 days
(In Thousands of Dollars)		for credit loss				for credit loss				still accruing
September 30, 2026
Commercial real estate
Owner occupied		$	4,167			$	2,775			$	0
Non-owner occupied			8,116				3,191				0
Farmland			0				1,811				0
Other			1,430				3,499				4,426
Commercial
Commercial and industrial			6,726				3,561				0
Agricultural			0				145				0
Residential real estate
1-4 family residential			2,128				3,375				377
Home equity lines of credit			297				853				30
Consumer
Indirect			29				820				30
Direct			0				54				0
Other			0				97				1
Total loans		$	22,893			$	20,181			$	4,864

		Nonaccrual with				Nonaccrual with				Loans past due
		no allowance				an allowance				over 89 days
(In Thousands of Dollars)		for credit loss				for credit loss				still accruing
December 31, 2025
Commercial real estate
Owner occupied		$	1,346			$	207			$	0
Non-owner occupied			2,408				10,776				0
Farmland			0				1,917				0
Other			1,093				0				0
Commercial
Commercial and industrial			0				2,778				82
Agricultural			0				159				0
Residential real estate
1-4 family residential			1,095				2,329				271
Home equity lines of credit			424				689				0
Consumer
Indirect			61				462				0
Direct			0				21				0
Other			97				0				0
Total loans		$	6,524			$	19,338			$	353

There were no loans that were held for sale and in nonaccrual status for the periods ending September 30, 2026 and December 31, 2025.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2026 and December 31, 2025:

(In Thousands of Dollars)		Real Estate				Business Assets				Vehicles				Cash
September 30, 2026
Commercial real estate
Owner occupied		$	6,494			$	0			$	0			$	0
Non-owner occupied			26,296				0				0				0
Farmland			1,821				0				0				0
Other			4,929				0				0				0
Commercial
Commercial and industrial			20				9,705				0				0
Agricultural			0				7				0				0
Residential real estate
1-4 family residential			3,266				0				0				0
Home equity lines of credit			799				0				0				0
Consumer
Indirect			0				0				69				0
Direct			0				0				0				0
Other			97				0				0				0
Total loans		$	43,722			$	9,712			$	69			$	0

(In Thousands of Dollars)		Real Estate				Business Assets				Vehicles				Cash
December 31, 2025
Commercial real estate
Owner occupied		$	1,346			$	0			$	0			$	0
Non-owner occupied			24,235				0				0				0
Farmland			1,872				0				0				0
Other			1,093				0				0				0
Commercial
Commercial and industrial			0				2,352				0				0
Agricultural			0				0				0				0
Residential real estate
1-4 family residential			2,411				0				0				0
Home equity lines of credit			944				0				0				0
Consumer
Indirect			0				0				102				0
Direct			0				0				4				0
Other			97				0				0				0
Total loans		$	31,998			$	2,352			$	106			$	0

The following tables present the aging of the amortized cost basis in past due loans as of September 30, 2026 and December 31, 2025 by class of loans.

										90 Days
										or More
		30-59 Days				60-89 Days				Past Due				Total				Loans Not
(In Thousands of Dollars)		Past Due				Past Due				and Nonaccrual				Past Due				Past Due				Total
September 30, 2026
Commercial real estate
Owner occupied		$	1,127			$	2,062			$	6,942			$	10,131			$	621,665			$	631,796
Non-owner occupied			2,059				2,122				11,307				15,488				1,022,800				1,038,288
Farmland			0				2				1,811				1,813				223,071				224,884
Other			929				0				9,355				10,284				377,157				387,441
Commercial
Commercial and industrial			2,253				261				10,287				12,801				587,580				600,381
Agricultural			314				45				145				504				58,880				59,384
Residential real estate
1-4 family residential			2,492				2,108				5,880				10,480				1,229,844				1,240,324
Home equity lines of credit			3,010				696				1,180				4,886				367,824				372,710
Consumer
Indirect			2,959				780				879				4,618				261,203				265,821
Direct			58				10				54				122				21,200				21,322
Other			22				82				98				202				12,265				12,467
Total loans		$	15,223			$	8,168			$	47,938			$	71,329			$	4,783,489			$	4,854,818

										90 Days
										or More
		30-59 Days				60-89 Days				Past Due				Total				Loans Not
(In Thousands of Dollars)		Past Due				Past Due				and Nonaccrual				Past Due				Past Due				Total
December 31, 2025
Commercial real estate
Owner occupied		$	419			$	1,018			$	1,553			$	2,990			$	389,881			$	392,871
Non-owner occupied			8				0				13,184				13,192				696,884				710,076
Farmland			116				163				1,917				2,196				209,035				211,231
Other			0				0				1,093				1,093				292,915				294,008
Commercial
Commercial and industrial			1,064				174				2,860				4,098				337,639				341,737
Agricultural			235				30				159				424				54,665				55,089
Residential real estate
1-4 family residential			9,848				1,122				3,695				14,665				836,515				851,180
Home equity lines of credit			75				54				1,113				1,242				180,544				181,786
Consumer
Indirect			2,090				470				523				3,083				237,027				240,110
Direct			37				7				21				65				16,486				16,551
Other			17				0				97				114				9,960				10,074
Total loans		$	13,909			$	3,038			$	26,215			$	43,162			$	3,261,551			$	3,304,713