LOANS

9 Months Ended

Sep. 30, 2025

Receivables [Abstract]

LOANS

NOTE 6 LOANS

Loans receivable outstanding as of September 30, 2025 and December 31, 2024, are summarized as follows:

	September 30,		December 31,
(Dollars in thousands)	2025		2024
Real estate secured:
Commercial	$	252,748	$	243,646
Construction and land development		40,811		36,112
Residential 1-4 family		251,587		234,860
Multifamily		44,912		32,379
Farmland		24,504		16,921
Total real estate loans		614,562		563,918
Commercial		55,325		60,587
Agriculture		4,872		4,025
Consumer installment and all other loans		32,513		29,006
Total loans	$	707,272	$	657,536

Also included in total loans above are deferred loan fees of $2.2 million and $2.0 million as of September 30, 2025 and December 31, 2024, respectively. Deferred loan costs were $2.1 million and $1.9 million, as of September 30, 2025 and December 31, 2024, respectively. Income from net deferred fees and costs is recognized over the lives of the respective loans as a yield adjustment. If loans repay prior to scheduled maturities any unamortized fees or costs are recognized at that time.

Loans receivable on nonaccrual status as of September 30, 2025 and December 31, 2024, are summarized as follows:

				September 30, 2025						December 31, 2024
				With No Allowance		With an Allowance		Total		With No Allowance		With an Allowance		Total
(Dollars in thousands)
Real estate secured:
	Commercial		$	7	$	-	$	7	$	411	$	-	$	411
	Construction and land development			26		-		26		300		-		300
	Residential 1-4 family			1,965		39		2,004		2,232		178		2,410
	Farmland			18		-		18		-		-		-
		Total real estate loans		2,016		39		2,055		2,943		178		3,121
Commercial				78		-		78		66		-		66
Agriculture				-		752		752		16		-		16
Consumer installment loans and other loans				67		-		67		56		14		70
Total loans receivable on nonaccrual status			$	2,161	$	791	$	2,952	$	3,081	$	192	$	3,273

Total interest income not recognized (recognized) on nonaccrual loans for the three months ended September 30, 2025 and September 30, 2024 was $26,000 and ($18,000), respectively. Interest recognized during the three months ended September 30, 2024, resulted, primarily, from the resolution of a single loan secured by commercial real estate. Total interest income not recognized on nonaccrual loans for the nine months ended September 30, 2025 and September 30, 2024, was $88,000 and $51,000, respectively.

The Company evaluates loans that do not share risk characteristics on an individual basis utilizing the collateral or discounted cash flow methods. The following table presents the unpaid principal balance of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to those loans as of September 30, 2025 and December 31, 2024:

			September 30, 2025				December 31, 2024
			Unpaid Principal Balance		Related Allowance		Unpaid Principal Balance		Related Allowance
(Dollars in thousands)
Real estate secured:
	Commercial	$	3,036	$	-	$	396	$	-
	Construction and land development		-		-		300		-
	Residential 1-4 family		510		39		1,008		177
Total real estate loans			3,546		39		1,704		177
Agriculture			752		54		-		-
Consumer installment loans and other loans			-		-		13		3
Total		$	4,298	$	93	$	1,717	$	180

The following table is an age analysis of past due loans receivable as of September 30, 2025, segregated by class:

September 30, 2025 (Dollars in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans
Real estate secured:
Commercial	$	368	$	39	$	7	$	414	$	252,334	$	252,748
Construction and land development		—		—		—		—		40,811		40,811
Residential 1-4 family		1,568		889		637		3,094		248,493		251,587
Multifamily		—		—		—		—		44,912		44,912
Farmland		—		—		—		—		24,504		24,504
Total real estate loans		1,936		928		644		3,508		611,054		614,562
Commercial		19		9		51		79		55,246		55,325
Agriculture		—		—		752		752		4,120		4,872
Consumer installment and all other loans		120		75		43		238		32,275		32,513
Total loans	$	2,075	$	1,012	$	1,490	$	4,577	$	702,695	$	707,272

The following table is an age analysis of past due loans receivable as of December 31, 2024, segregated by class:

December 31, 2024 (Dollars in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans
Real estate secured:
Commercial	$	—	$	255	$	156	$	411	$	243,235	$	243,646
Construction and land development		3		333		—		336		35,776		36,112
Residential 1-4 family		2,413		1,810		510		4,733		230,127		234,860
Multifamily		—		—		—		—		32,379		32,379
Farmland		207		—		—		207		16,714		16,921
Total real estate loans		2,623		2,398		666		5,687		558,231		563,918
Commercial		166		77		—		243		60,344		60,587
Agriculture		37		—		—		37		3,988		4,025
Consumer installment and all other loans		89		88		30		207		28,799		29,006
Total loans	$	2,915	$	2,563	$	696	$	6,174	$	651,362	$	657,536

The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings:

Pass - Loans in this category are considered to have a low likelihood of loss based on relevant information analyzed about the ability of the borrowers to service their debt and other factors.

Special Mention - Loans in this category are currently protected but are potentially weak, including adverse trends in borrower’s operations, credit quality or financial strength. Those loans constitute an undue and unwarranted credit risk but not to the point of justifying a substandard classification. The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances.  Special mention loans have potential weaknesses which may, if not checked or corrected, weaken the loan or inadequately protect the Company’s credit position at some future date.

Substandard - A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

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

The following table presents the credit risk grade of loans by origination year as of September 30, 2025:

As of December 31, 2024
(Dollars are in thousands)	2025			2024			2023			2022			2021			Prior			Revolving			Total
Commercial real estate
Pass	$	25,831		$	21,223		$	43,748		$	46,030		$	41,480		$	71,922		$	332		$	250,566
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			2,174			8			—			2,182
Total commercial real estate	$	25,831		$	21,223		$	43,748		$	46,030		$	43,654		$	71,930		$	332		$	252,748
Current period gross charge-offs	$	—		$	—		$	—		$	(1	)	$	—		$	—		$	—		$	(1	)
Construction and Land Development
Pass	$	9,268		$	21,844		$	2,882		$	2,139		$	2,273		$	2,379		$	—		$	40,785
Special mention		—			—			—			—			—			—			—			—
Substandard		—			26			—			—			—			—			—			26
Total construction and land development	$	9,268		$	21,870		$	2,882		$	2,139		$	2,273		$	2,379		$	—		$	40,811
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Residential 1-4 family
Pass	$	27,640		$	19,330		$	26,739		$	26,029		$	36,943		$	77,720		$	34,600		$	249,001
Special mention		—			—			—			—			—			485			—			485
Substandard		—			104			116			51			—			1,725			105			2,101
Total residential 1-4 family	$	27,640		$	19,434		$	26,855		$	26,080		$	36,943		$	79,930		$	34,705		$	251,587
Current period gross charge-offs	$	—		$	—		$	(139	)	$	—		$	—		$	—		$	—		$	(139	)
Multifamily
Pass	$	15,344		$	1,415		$	4,583		$	9,582		$	6,507		$	7,481		$	—		$	44,912
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—
Total multifamily	$	15,344		$	1,415		$	4,583		$	9,582		$	6,507		$	7,481		$	—		$	44,912
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Farmland
Pass	$	8,343		$	2,644		$	1,142		$	1,846		$	2,679		$	6,465		$	1,239		$	24,358
Special mention		—			—			—			—			—			128			—			128
Substandard		—			—			—			—			—			18			—			18
Total farmland	$	8,343		$	2,644		$	1,142		$	1,846		$	2,679		$	6,611		$	1,239		$	24,504
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Commercial
Pass	$	11,486		$	11,874		$	10,030		$	2,949		$	1,515		$	3,013		$	14,377		$	55,244
Special mention		—			—			—			—			—			2			—			2
Substandard		—			51			—			—			—			—			28			79
Total commercial	$	11,486		$	11,925		$	10,030		$	2,949		$	1,515		$	3,015		$	14,405		$	55,325
Current period gross charge-offs	$	—		$	(8	)	$	—		$	—		$	(23	)	$	—		$	(10	)	$	(41	)
Agriculture
Pass	$	1,083		$	716		$	189		$	206		$	127		$	123		$	1,645		$	4,089
Special mention		—			—			—			—			—			—			32			32
Substandard		—			—			—			—			—			—			—			—
Doubtful		—			305			—			—			—			—			446			751
Total agriculture	$	1,083		$	1,021		$	189		$	206		$	127		$	123		$	2,123		$	4,872
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	(50	)	$	(50	)
Consumer and All Other
Pass	$	12,549		$	9,661		$	5,660		$	1,580		$	843		$	982		$	1,172		$	32,447
Special mention		—			—			—			—			—			—			—			—
Substandard		9			35			20			2			—			—			—			66
Total consumer and all other	$	12,558		$	9,696		$	5,680		$	1,582		$	843		$	982		$	1,172		$	32,513
Current period gross charge-offs	$	(115	)	$	(32	)	$	(12	)	$	(5	)	$	(1	)	$	(2	)	$	(37	)	$	(204	)
Total	$	111,553		$	89,228		$	95,109		$	90,414		$	94,541		$	172,451		$	53,976		$	707,272
Total current period gross charge-offs	$	(115	)	$	(40	)	$	(151	)	$	(6	)	$	(24	)	$	(2	)	$	(97	)	$	(435	)

The following table presents the credit risk grade of loans by origination year as of December 31, 2024:

As of December 31, 2024
(Dollars are in thousands)	2024			2023			2022			2021			2020			Prior			Revolving			Total
Commercial real estate
Pass	$	20,653		$	47,052		$	43,553		$	46,902		$	27,155		$	56,369		$	1,541		$	243,225
Special mention		—			—			—			—			—			9			—			9
Substandard		—			—			255			141			—			16			—			412
Total commercial real estate	$	20,653		$	47,052		$	43,808		$	47,043		$	27,155		$	56,394		$	1,541		$	243,646
Current period gross charge-offs	$	—		$	—		$	—		$	(179	)	$	—		$	—		$	(1	)	$	(180	)
Construction and Land Development
Pass	$	17,654		$	5,078		$	6,240		$	3,019		$	1,719		$	2,089		$	—		$	35,799
Special mention		—			—			—			—			—			12			—			12
Substandard		301			—			—			—			—			—			—			301
Total construction and land development	$	17,955		$	5,078		$	6,240		$	3,019		$	1,719		$	2,101		$	—		$	36,112
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Residential 1-4 family
Pass	$	19,094		$	27,861		$	29,510		$	38,329		$	11,265		$	78,424		$	26,933		$	231,416
Special mention		—			—			—			—			—			319			—			319
Substandard		104			257			42			723			238			1,647			114			3,125
Total residential 1-4 family	$	19,198		$	28,118		$	29,552		$	39,052		$	11,503		$	80,390		$	27,047		$	234,860
Current period gross charge-offs	$	—		$	(38	)	$	—		$	—		$	—		$	(37	)	$	—		$	(75	)
Multifamily
Pass	$	1,564		$	4,829		$	10,313		$	6,818		$	2,505		$	6,350		$	—		$	32,379
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—
Total multifamily	$	1,564		$	4,829		$	10,313		$	6,818		$	2,505		$	6,350		$	—		$	32,379
Current period gross charge-offs	$	—		$	(53	)	$	—		$	—		$	—		$	(42	)	$	—		$	(95	)
Farmland
Pass	$	2,669		$	1,333		$	2,045		$	2,812		$	730		$	7,186		$	—		$	16,775
Special mention		—			—			—			—			—			146			—			146
Substandard		—			—			—			—			—			—			—			—
Total farmland	$	2,669		$	1,333		$	2,045		$	2,812		$	730		$	7,332		$	—		$	16,921
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Commercial
Pass	$	18,298		$	13,490		$	4,780		$	2,305		$	801		$	2,560		$	18,284		$	60,518
Special mention		—			—			—			—			—			2			—			2
Substandard		1			—			—			31			—			—			35			67
Total commercial	$	18,299		$	13,490		$	4,780		$	2,336		$	801		$	2,562		$	18,319		$	60,587
Current period gross charge-offs	$	—		$	(34	)	$	(55	)	$	—		$	—		$	—		$	(73	)	$	(162	)
Agriculture
Pass	$	1,333		$	322		$	339		$	232		$	35		$	195		$	1,553		$	4,009
Special mention		—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			16			—			16
Total agriculture	$	1,333		$	322		$	339		$	232		$	35		$	211		$	1,553		$	4,025
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer and All Other
Pass	$	14,500		$	7,982		$	2,706		$	1,276		$	424		$	880		$	1,158		$	28,926
Special mention		—			—			—			—			—			—			—			—
Substandard		17			22			20			19			2			—			—			80
Total consumer and all other	$	14,517		$	8,004		$	2,726		$	1,295		$	426		$	880		$	1,158		$	29,006
Current period gross charge-offs	$	(163	)	$	(62	)	$	(14	)	$	(7	)	$	(9	)	$	—		$	(24	)	$	(279	)
Total	$	96,188		$	108,226		$	99,803		$	102,607		$	44,874		$	156,220		$	49,618		$	657,536
Total current period gross charge-offs	$	(163	)	$	(187	)	$	(69	)	$	(186	)	$	(9	)	$	(79	)	$	(98	)	$	(791	)