Note 5 - Loan Restructurings

9 Months Ended

Sep. 30, 2026

Financing Receivable Restructurings [Text Block]

Loan Restructurings

The Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model.

The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2026 and September 30, 2025, by class and 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:

Three Months Ended September 30, 2026	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Payment Deferral and Interest Rate Reduction		Combination Payment Deferral and Term Extension		Total		% of Total Class of Financing Receivable
Residential real estate
1-4 family residential		190		0		0		0		11		201		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	190	$	0	$	0	$	0	$	11	$	201		0.00	%

Nine Months Ended September 30, 2026	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Payment Deferral and Interest Rate Reduction		Combination Payment Deferral and Term Extension		Total		% of Total Class of Financing Receivable
Commercial real estate
Non-owner occupied	$	4,321	$	0	$	0	$	0	$	2,777	$	7,098		0.68	%
Residential real estate
1-4 family residential		190		0		0		79		11	$	280		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	4,511	$	0	$	0	$	79	$	2,788	$	7,378		0.15	%

Three Months Ended September 30, 2025	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Payment Deferral and Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Commercial real estate
Non-owner occupied	$	0	$	0	$	0	$	0	$	0	$	0		0.00	%
Other		111		0		482		510		0		1,103		0.37	%
Commercial
Commercial and industrial		0		0		0		0		0		0		0.00	%
Residential real estate
1-4 family residential		0		0		0		0		0		0		0.00	%
Home equity lines of credit		0		0		277		0		0		277		0.16	%
Total modifications to borrowers experiencing financial difficulty	$	111	$	0	$	759	$	510	$	0	$	1,380		0.04	%

Nine Months Ended September 30, 2025	Amortized Cost
	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Payment Deferral and Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable


(In Thousands of Dollars)
Commercial real estate
Non-owner occupied	$	0	$	11,128	$	0	$	0	$	0	$	11,128		1.52	%
Other		111		0		482		510		0		1,103		0.37	%
Commercial
Commercial and industrial		124		0		0		0		58		182		0.05	%
Residential real estate
1-4 family residential		103		0		0		0		0		103		0.01	%
Home equity lines of credit		0		14		277		0		75		366		0.21	%
Total modifications to borrowers experiencing financial difficulty	$	338	$	11,142	$	759	$	510	$	133	$	12,882		0.39	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2026 and September 30, 2025:

Payment Deferral

Interest Rate Reduction

Term Extension

Weighted-Average

Weighted-Average Contractual Interest Rate

Weighted-Average Years

Principal Deferred

From

Added to the Life

Three Months Ended September 30, 2026

Residential real estate

1-4 family residential

N/A

Payment Deferral

Interest Rate Reduction

Term Extension

Weighted-Average

Weighted-Average Contractual Interest Rate

Weighted-Average Years

Principal Deferred

From

Added to the Life

Nine Months Ended September 30, 2026

Commercial real estate

Non-owner occupied

N/A

Residential real estate

1-4 family residential

5.976

4.032

Payment Deferral

Interest Rate Reduction

Term Extension

Weighted-Average

Weighted-Average Contractual Interest Rate

Weighted-Average Years

Principal Deferred

From

Added to the Life

Three Months Ended September 30, 2025

Commercial real estate

Non-owner occupied

Other

6.81

5.25

Commercial

Commercial and industrial

Residential real estate

1-4 family residential

Home Equity Lines of Credit

7.75

5.00

	Payment Deferral		Interest Rate Reduction						Term Extension
	Weighted-Average		Weighted-Average Contractual Interest Rate						Weighted-Average Years
	Principal Deferred		From			To			Added to the Life
Nine Months Ended September 30, 2025
Commercial real estate
Non-owner occupied										1
Other	$	16		6.81	%		5.25	%
Commercial
Commercial and industrial		112		10.25	%		8.00	%		6
Residential real estate
1-4 family residential		6
Home Equity Lines of Credit				7.75	%		4.79	%		9

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the three and nine months ended September 30, 2026 and September 30, 2025:

Three Months Ended September 30, 2026	Payment status (Amortized cost Basis)
			30-89		90+
(In Thousands of Dollars)	Current		Days past due		Days past due
Accrual restructured loans
Commercial real estate
Non-owner occupied	$	0	$	0	$	0
Residential real estate
1-4 family residential		11		0		0
Total accruing restructured loans	$	11	$	0	$	0

Nonaccrual restructured loans
Commercial real estate
Non-owner occupied	$	0	$	0	$	0
Residential real estate
1-4 family residential		190		0		0
Total nonaccrual restructured loans	$	190	$	0	$	0
Total restructured loans	$	201	$	0	$	0

Nine Months Ended September 30, 2026	Payment status (Amortized cost Basis)
			30-89		90+
(In Thousands of Dollars)	Current		Days past due		Days past due
Accrual restructured loans
Commercial real estate
Non-owner occupied	$	2,777	$	0	$	0
Residential real estate
1-4 family residential		52		0		0
Total accruing restructured loans	$	2,829	$	0	$	0

Nonaccrual restructured loans
Commercial real estate
Non-owner occupied	$	4,321	$	0	$	0
Residential real estate
1-4 family residential		190		38		0
Total nonaccrual restructured loans	$	4,511	$	38	$	0
Total restructured loans	$	7,340	$	38	$	0

Three Months Ended September 30, 2025	Payment status (Amortized cost Basis)
			30-89		90+
(In Thousands of Dollars)	Current		Days past due		Days past due
Accrual restructured loans
Commercial real estate
Non-owner occupied	$	0	$	0	$	0
Residential real estate
1-4 family residential		0		0		0
Home equity lines of credit		0		0		0
Total accruing restructured loans	$	0	$	0	$	0

Nonaccrual restructured loans
Commercial real estate
Other	$	1,103	$	0	$	0
Commercial
Commercial and industrial		0		0		0
Residential real estate
Home equity lines of credit		277		0		0
Total nonaccrual restructured loans	$	1,380	$	0	$	0
Total restructured loans	$	1,380	$	0	$	0

Nine Months Ended September 30, 2025	Payment status (Amortized cost Basis)
			30-89		90+
(In Thousands of Dollars)	Current		Days past due		Days past due
Accrual restructured loans
Commercial real estate
Non-owner occupied	$	11,154	$	0	$	0
Residential real estate
1-4 family residential		103		0		0
Home equity lines of credit		88		0		0
Total accruing restructured loans	$	11,345	$	0	$	0

Nonaccrual restructured loans
Commercial real estate
Other	$	1,103	$	0	$	0
Commercial
Commercial and industrial		54		0		0
Residential real estate
Home equity lines of credit		277		0		0
Total nonaccrual restructured loans	$	1,434	$	0	$	0
Total restructured loans	$	12,779	$	0	$	0

As of September 30, 2026, the Company had no commitments to lend any additional funds on restructured loans.

The following table presents the amortized cost basis of loans that had a payment default during the three and nine months ended September 30, 2026 and September 30, 2025, and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. For purposes of this disclosure a default occurs when within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms:

Three Months Ended September 30, 2026	Amortized Cost
							Combination		Combination
							Term Extension		Principal Deferral
	Payment		Term		Interest Rate		and Interest Rate		and Interest Rate
(In Thousands of Dollars)	Deferral		Extension		Reduction		Reduction		Reduction
Commercial real estate
Non-owner occupied	$	1,832	$	0	$	0	$	0	$	0
Other		0		0		0		0		0
Residential real estate
1-4 family residential		0		0		0		0		37
Total modifications to borrowers experiencing financial difficulty	$	1,832	$	0	$	0	$	0	$	37

Nine Months Ended September 30, 2026	Amortized Cost
							Combination		Combination
							Term Extension		Principal Deferral
	Payment		Term		Interest Rate		and Interest Rate		and Interest Rate
(In Thousands of Dollars)	Deferral		Extension		Reduction		Reduction		Reduction
Commercial real estate
Non-owner occupied	$	1,832	$	0	$	0	$	0	$	0
Other		109		0		472		0		43
Residential real estate
1-4 family residential		102		0		0		0		75
Total modifications to borrowers experiencing financial difficulty	$	2,043	$	0	$	472	$	0	$	118

Three Months Ended September 30, 2025	Amortized Cost
							Combination
							Term Extension
	Payment		Term		Interest Rate		and Interest Rate
(In Thousands of Dollars)	Deferral		Extension		Reduction		Reduction
Commercial
Commercial and industrial	$	0	$	0	$	0	$	0
Residential real estate
1-4 family residential		0		0		0		0
Home equity lines of credit		0		0		0		0
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	0	$	0

Nine Months Ended September 30, 2025	Amortized Cost
							Combination
							Term Extension
	Payment		Term		Interest Rate		and Interest Rate
(In Thousands of Dollars)	Deferral		Extension		Reduction		Reduction
Commercial
Commercial and industrial	$	124	$	0	$	0	$	0
Residential real estate
1-4 family residential		0		0		0		0
Home equity lines of credit		0		0		0		19
Total modifications to borrowers experiencing financial difficulty	$	124	$	0	$	0	$	19

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance of the credit losses is adjusted by the same amount.