ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

3 Months Ended

Mar. 31, 2026

Allowance For Credit Losses For Loans

ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”)

NOTE 7 ALLOWANCE FOR CREDIT LOSSES FOR LOANS (“ACLL”) 

In determining the amount of our allowance for credit losses, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision. 

The following table presents a disaggregated analysis of activity in the allowance for credit losses for loans as of March 31, 2026 and December 31, 2025: 

	Real estate secured
				Construction															Consumer
				and Land		Residential													and All
(Dollars are in thousands)	Commercial			Development		1-4 family			Multifamily		Farmland		Commercial			Agriculture			Other			Total
Three months ended March 31, 2026
Beginning balance	$	2,856		$	411	$	2,799		$	559	$	166	$	602		$	82		$	632		$	8,107
Charge-offs		(103	)		—		—			—		—		(38	)		(117	)		(80	)		(338	)
Recoveries		—			—		36			3		9		—			—			48			96
Provision for credit losses		19			77		(1	)		26		4		82			72			(28	)		251
Ending balance	$	2,772		$	488	$	2,834		$	588	$	179	$	646		$	37		$	572		$	8,116
	Real estate secured
				Construction															Consumer
				and Land		Residential													and All
(Dollars are in thousands)	Commercial			Development		1-4 family			Multifamily		Farmland		Commercial			Agriculture			Other			Total
Year ended December 31, 2025
Beginning balance	$	2,565		$	322	$	2,923		$	382	$	149	$	751		$	36		$	556		$	7,684
Charge-offs		(1	)		—		(139	)		—		—		(97	)		(50	)		(376	)		(663	)
Recoveries		—			54		60			12		3		8			—			207			347
Provision for credit losses		292			35		(45	)		165		14		(60	)		93			245			739
Ending balance	$	2,856		$	411	$	2,799		$	559	$	166	$	602		$	82		$	632		$	8,107

Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.