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LOANS HELD FOR INVESTMENT

6 Months Ended

Jun. 30, 2026

LOANS HELD FOR INVESTMENT [Abstract]

4. LOANS HELD FOR INVESTMENT

Loans held for investment are summarized by category as of the dates presented below (dollars in thousands):

	June 30, 2026			December 31, 2025
Commercial real estate	$	1,332,520		$	1,064,625
Commercial - specialized		429,380			409,351
Commercial - general		827,452			659,323
Consumer:
1-4 family residential		714,014			589,851
Auto loans		263,810			259,157
Other consumer		61,060			62,092
Construction		143,198			100,103
		3,771,434			3,144,502
Allowance for credit losses on loans		(53,076	)		(45,131	)
Loans, net	$	3,718,358		$	3,099,371

The Company has certain lending policies, underwriting standards, and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies, underwriting standards, and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing, and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography.

Commercial Real Estate – Underwriting standards have been designed to determine whether the borrower possesses sound business ethics and practices, evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed and ensure appropriate collateral is obtained to secure the loan. Commercial real estate loans are underwritten primarily based on projected cash flows for income-producing properties and collateral values for non-income-producing properties. The repayment of these loans is generally dependent on the successful operation of the property securing the loans or the sale or refinancing of the property. Real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are diversified by type and geographic location. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry.

Commercial – General and Specialized – Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably. Underwriting standards have been designed to determine whether the borrower possesses sound business ethics and practices, evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations, as agreed and ensure appropriate collateral is obtained to secure the loan. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as real estate, accounts receivable, or inventory, and typically include personal guarantees. Owner-occupied real estate is included in commercial loans, as the repayment of these loans is generally dependent on the operations of the commercial borrower’s business rather than on income-producing properties or the sale of the properties. Commercial loans are grouped into two distinct sub-categories: specialized and general. Commercial related segments that are considered “specialized” include agricultural production and real estate loans, energy loans, and finance, investment, and insurance loans. Commercial related segments that contain a broader diversity of borrowers, sub-industries, or serviced industries are grouped into the “general category.” These include goods, services, restaurant & retail, construction, and other industries. Performance of these loans is subject to operating and cash flow results of the borrower, with risk in the volatility of operating results for particular industries.

Consumer – Loans to consumers include 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. The Company utilizes a computer-based credit scoring analysis to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. The Company generally requires mortgage title insurance and hazard insurance on 1-4 family residential loans. All consumer loans are generally dependent on the risk characteristics of the borrower’s ability to repay the loan, a consideration of the debt to income ratio, employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral.

Construction – Loans for residential construction are for single-family properties to developers, builders, or end-users. These loans are underwritten based on estimates of costs and completed value of the project. Funds are advanced based on estimated percentage of completion for the project. Performance of these loans is affected by economic conditions as well as the ability to control costs of the projects.

The commercial real estate and construction categories comprise the Company’s nonowner-occupied real estate loans. Total nonowner-occupied real estate loans were $1.48 billion at June 30, 2026, and $1.16 billion at December 31, 2025.

The following table details the activity in the ACL for loans for the periods indicated (dollars in thousands). Allocation of a portion of the ACL to one category of loans does not preclude its availability to absorb losses in other categories.

	Beginning Balance		Initial ACL on Acquired PCD Loans		Initial ACL on Acquired PSLs		Provision for Credit Losses			Charge-offs			Recoveries		Ending Balance
For the three months ended June 30, 2026
Commercial real estate	$	15,017	$	1,897	$	1,705	$	(227	)	$	(64	)	$	-	$	18,328
Commercial - specialized		5,351		181		226		(107	)		(84	)		46		5,613
Commercial - general		7,384		336		914		193			(280	)		43		8,590
Consumer:
1-4 family residential		10,803		732		2,207		(152	)		(2	)		6		13,594
Auto loans		3,298		-		-		226			(122	)		47		3,449
Other consumer		1,057		-		3		219			(264	)		105		1,120
Construction		1,912		27		245		198			-			-		2,382
	$	44,822	$	3,173	$	5,300	$	350		$	(816	)	$	247	$	53,076

For the three months ended June 30, 2025
Commercial real estate	$	15,787	$	-	$	-	$	(81	)	$	-		$	-	$	15,706
Commercial - specialized		4,523		-		-		311			-			47		4,881
Commercial - general		6,403		-		-		856			(284	)		253		7,228
Consumer:
1-4 family residential		10,079		-		-		1,030			-			41		11,150
Auto loans		3,096		-		-		252			(392	)		39		2,995
Other consumer		1,107		-		-		157			(258	)		96		1,102
Construction		1,973		-		-		(25	)		-			-		1,948
	$	42,968	$	-	$	-	$	2,500		$	(934	)	$	476	$	45,010

For the six months ended June 30, 2026
Commercial real estate	$	15,214	$	1,897	$	1,705	$	(424	)	$	(64	)	$	-	$	18,328
Commercial - specialized		5,231		181		226		(16	)		(84	)		75		5,613
Commercial - general		7,448		336		914		289			(456	)		59		8,590
Consumer:
1-4 family residential		11,103		732		2,207		(747	)		(2	)		301		13,594
Auto loans		3,033		-		-		741			(403	)		78		3,449
Other consumer		1,150		-		3		349			(603	)		221		1,120
Construction		1,952		27		245		158			-			-		2,382
	$	45,131	$	3,173	$	5,300	$	350		$	(1,612	)	$	734	$	53,076

For the six months ended June 30, 2025
Commercial real estate	$	15,973	$	-	$	-	$	(267	)	$	-		$	-	$	15,706
Commercial - specialized		4,640		-		-		160			-			81		4,881
Commercial - general		6,874		-		-		439			(358	)		273		7,228
Consumer:
1-4 family residential		9,677		-		-		1,425			-			48		11,150
Auto loans		3,015		-		-		583			(694	)		91		2,995
Other consumer		1,115		-		-		410			(572	)		149		1,102
Construction		1,943		-		-		-			-			5		1,948
	$	43,237	$	-	$	-	$	2,750		$	(1,624	)	$	647	$	45,010

The provision for credit losses on the consolidated statements of income is comprised of the provision for credit losses on loans, noted in the above table, and the provision for off-balance sheet credit loss exposures. During the three and six months ended June 30, 2026 the Company recorded a provision for off-balance sheet credit exposures of $- and $260 thousand, respectively. During the three and six months ended June 30, 2025, the Company recorded a provision for off-balance sheet credit exposures of $- and $170 thousand, respectively.

The following table shows the Company’s amortized cost and related ACL for individually evaluated collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the dates indicated (dollars in thousands).

	Equipment		Real Estate		Other		Total Loans Individually Evaluated		Total ACL for Individually Evaluated Loans
June 30, 2026
Commercial real estate	$	-	$	1,666	$	256	$	1,922	$	1,022
Commercial - specialized		456		155		24		635		60
Commercial - general		-		363		-		363		-
Consumer:
1-4 family residential		-		1,614		-		1,614		44
Auto loans		-		-		-		-		-
Other consumer		-		-		-		-		-
Construction		-		598		-		598		-
	$	456	$	4,396	$	280	$	5,132	$	1,126

December 31, 2025
Commercial real estate	$	462	$	941	$	-	$	1,403	$	112
Commercial - specialized		289		255		-		544		-
Commercial - general		1,086		2,869		-		3,955		275
Consumer:
1-4 family residential		-		-		-		-		-
Auto loans		-		-		-		-		-
Other consumer		-		-		-		-		-
Construction		-		-		-		-		-
	$	1,837	$	4,065	$	-	$	5,902	$	387

The table below provides an age analysis on accruing past-due loans and nonaccrual loans at the dates indicated (dollars in thousands):

	30-89 Days Past Due		90 Days or More Past Due		Nonaccrual		Nonaccrual with no ACL
June 30, 2026
Commercial real estate	$	4,726	$	213	$	1,922	$	-
Commercial - specialized		18		-		695		-
Commercial - general		1,157		127		491		363
Consumer:
1-4 Family residential		1,793		2,131		3,139		585
Auto loans		569		40		-		-
Other consumer		531		36		12		-
Construction		-		103		598		598
	$	8,794	$	2,650	$	6,857	$	1,546

December 31, 2025
Commercial real estate	$	2,241	$	206	$	1,402	$	54
Commercial - specialized		264		50		699		544
Commercial - general		1,173		31		4,108		-
Consumer:
1-4 Family residential		1,221		1,750		845		-
Auto loans		395		40		-		-
Other consumer		765		80		16		-
Construction		455		578		-		-
	$	6,514	$	2,735	$	7,070	$	598

Credit Quality Indicators

The Company grades its loans on a thirteen-point grading scale. These grades fit in one of the following categories: (i) pass, (ii) special mention, (iii) substandard, (iv) doubtful, or (v) loss. Loans categorized as loss are charged-off immediately. The grading of loans reflects a judgment by the Company about the risks of default associated with the loan. The Company reviews the grades on loans as part of the Company’s on-going monitoring of the credit quality of the loan portfolio. These risk ratings are assigned based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.

Pass loans have financial factors or nature of collateral that are considered reasonable credit risks in the normal course of lending and encompass several grades that are assigned based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring.

Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the loans at some future date.

Substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize collection and present the distinct possibility that some loss will be sustained if the deficiencies are not corrected. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Substandard loans can be accruing or can be nonaccrual depending on the circumstances of the individual loans.

Doubtful loans have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. All doubtful loans are on nonaccrual.

In connection with the review of the Company’s loan portfolio, management considers risk elements attributable to particular loan type or categories in assessing the quality of individual loans. The list of loans to be analyzed for individual evaluation consists of non-accrual loans over $250 thousand. Interest income recognized using a cash-basis method on non-accrual loans for the three and six months ended June 30, 2026 and 2025 was not significant. In addition, the Company closely monitors substandard accruing loans over $1 million, and past due accruing loans over $250 thousand for possible individual evaluation. All other loans will be evaluated collectively in designated pools unless a loss exposure has been identified. Additional funds committed to be advanced on individually analyzed loans are not significant.

The following table reflects the amortized cost basis in loans held for investment by credit quality indicator and origination year at the dates indicated, and related year-to-date gross charge-offs. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2026.

	Term Loans Amortized Cost Basis by Origination Year June 30, 2026
(Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Revolving Loans		Total

Commercial real estate
Pass	$	160,043	$	239,581	$	157,875	$	149,318	$	261,011	$	267,737	$	19,098	$	1,254,663
Special mention		-		4,068		3,537		9,760		3,929		12,992		483		34,769
Substandard		-		2,954		13,340		1,444		6,106		19,244		-		43,088
Total commercial real estate loans	$	160,043	$	246,603	$	174,752	$	160,522	$	271,046	$	299,973	$	19,581	$	1,332,520
Year-to-date gross charge-offs	$	-	$	-	$	-	$	-	$	64	$	-	$	-	$	64

Commercial - specialized
Pass	$	83,730	$	62,519	$	31,580	$	27,638	$	25,379	$	52,725	$	135,913	$	419,484
Special mention		2,461		148		2,242		-		-		1,661		1,850		8,362
Substandard		-		-		281		329		879		45		-		1,534
Total commercial - specialized loans	$	86,191	$	62,667	$	34,103	$	27,967	$	26,258	$	54,431	$	137,763	$	429,380
Year-to-date gross charge-offs	$	-	$	-	$	-	$	84	$	-	$	-	$	-	$	84

Commercial - general
Pass	$	76,511	$	181,219	$	129,096	$	52,329	$	104,304	$	153,978	$	102,813	$	800,250
Special mention		-		-		417		10,547		35		1,449		2,465		14,913
Substandard		119		1,132		761		1,616		2,192		2,469		4,000		12,289
Total commercial - general loans	$	76,630	$	182,351	$	130,274	$	64,492	$	106,531	$	157,896	$	109,278	$	827,452
Year-to-date gross charge-offs	$	-	$	50	$	101	$	7	$	52	$	237	$	9	$	456

Consumer 1-4 family residential:
Pass	$	51,778	$	90,562	$	67,538	$	86,883	$	180,321	$	187,658	$	23,378	$	688,118
Special mention		-		-		-		66		3,993		-		-		4,059
Substandard		-		339		4,019		2,773		2,630		11,491		585		21,837
Total consumer 1-4 family residential loans	$	51,778	$	90,901	$	71,557	$	89,722	$	186,944	$	199,149	$	23,963	$	714,014
Year-to-date gross charge-offs	$	-	$	-	$	-	$	2	$	-	$	-	$	-	$	2

Consumer auto loans
Pass	$	63,794	$	95,502	$	38,216	$	31,979	$	27,145	$	6,929	$	-	$	263,565
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		35		35		123		52		-		245
Total consumer auto loans	$	63,794	$	95,502	$	38,251	$	32,014	$	27,268	$	6,981	$	-	$	263,810
Year-to-date gross charge-offs	$	-	$	38	$	31	$	63	$	214	$	57	$	-	$	403

Consumer other consumer
Pass	$	16,633	$	19,964	$	9,198	$	4,562	$	4,567	$	4,902	$	1,155	$	60,981
Special mention		-		-		-		-		-		-		-		-
Substandard		-		14		21		-		15		28		1		79
Total consumer other consumer loans	$	16,633	$	19,978	$	9,219	$	4,562	$	4,582	$	4,930	$	1,156	$	61,060
Year-to-date gross charge-offs⁽¹⁾	$	-	$	279	$	231	$	5	$	6	$	82	$	-	$	603

Construction
Pass	$	33,701	$	79,410	$	15,319	$	2,472	$	11,067	$	-	$	-	$	141,969
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		103		1,126		-		-		-		1,229
Total construction loans	$	33,701	$	79,410	$	15,422	$	3,598	$	11,067	$	-	$	-	$	143,198
Year-to-date gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

(1) Includes $208 thousand in charged-off demand deposit overdrafts reported as 2026 originations.

	Term Loans Amortized Cost Basis by Origination Year December 31, 2025
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total

Commercial real estate
Pass	$	209,948	$	137,602	$	195,747	$	245,012	$	95,319	$	143,422	$	5,372	$	1,032,422
Special mention		-		2,825		7,343		81		166		1,095		483		11,993
Substandard		360		62		5,101		1,613		7,095		5,979		-		20,210
Total commercial real estate loans	$	210,308	$	140,489	$	208,191	$	246,706	$	102,580	$	150,496	$	5,855	$	1,064,625
Year-to-date gross charge-offs	$	-	$	-	$	541	$	-	$	-	$	-	$	-	$	541

Commercial - specialized
Pass	$	122,003	$	35,559	$	38,159	$	24,081	$	32,943	$	29,452	$	103,491	$	385,688
Special mention		4,572		8,076		799		1,042		1,734		830		3,770		20,823
Substandard		-		194		570		811		1,206		59		-		2,840
Total commercial - specialized loans	$	126,575	$	43,829	$	39,528	$	25,934	$	35,883	$	30,341	$	107,261	$	409,351
Year-to-date gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial - general
Pass	$	178,827	$	103,310	$	51,335	$	84,327	$	43,179	$	79,605	$	92,158	$	632,741
Special mention		60		2,110		12,127		-		1,011		473		-		15,781
Substandard		40		758		1,615		1,281		5,749		1,116		242		10,801
Total commercial - general loans	$	178,927	$	106,178	$	65,077	$	85,608	$	49,939	$	81,194	$	92,400	$	659,323
Year-to-date gross charge-offs	$	-	$	245	$	164	$	116	$	63	$	245	$	50	$	883

Consumer 1-4 family residential:
Pass	$	95,677	$	69,844	$	92,148	$	137,702	$	77,474	$	96,393	$	4,010	$	573,248
Special mention		-		-		621		428		5,061		-		-		6,110
Substandard		214		3,095		1,573		1,067		604		3,940		-		10,493
Total consumer 1-4 family residential loans	$	95,891	$	72,939	$	94,342	$	139,197	$	83,139	$	100,333	$	4,010	$	589,851
Year-to-date gross charge-offs	$	-	$	-	$	31	$	-	$	215	$	61	$	-	$	307

Consumer auto loans
Pass	$	115,240	$	48,236	$	42,397	$	39,896	$	11,045	$	2,015	$	-	$	258,829
Special mention		-		-		-		-		-		-		-		-
Substandard		-		44		70		122		75		17		-		328
Total consumer auto loans	$	115,240	$	48,280	$	42,467	$	40,018	$	11,120	$	2,032	$	-	$	259,157
Year-to-date gross charge-offs	$	29	$	243	$	367	$	477	$	198	$	35	$	-	$	1,349

Consumer other consumer
Pass	$	27,912	$	12,521	$	6,704	$	7,014	$	2,223	$	4,096	$	1,534	$	62,004
Special mention		-		-		-		-		-		-		-		-
Substandard		16		13		-		16		10		33		-		88
Total consumer other consumer loans	$	27,928	$	12,534	$	6,704	$	7,030	$	2,233	$	4,129	$	1,534	$	62,092
Year-to-date gross charge-offs	$	510	$	203	$	44	$	107	$	49	$	152	$	1	$	1,066

Construction
Pass	$	71,154	$	24,768	$	2,505	$	570	$	-	$	-	$	-	$	98,997
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		1,106		-		-		-		-		1,106
Total construction loans	$	71,154	$	24,768	$	3,611	$	570	$	-	$	-	$	-	$	100,103
Year-to-date gross charge-offs⁽¹⁾	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

(1) Includes $498 thousand in charged-off demand deposit overdrafts reported as 2025 originations.

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other than insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. In some cases, the Company provides multiple types of concessions on one loan.

The following table presents the amortized cost basis of loans at June 30, 2026 and 2025 that were both experiencing financial difficulty and modified during the periods indicated, by class and by 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 (dollars in thousands):

	Payment Delay		Term Extension		Rate Reduction		Term Extension and Payment Delay		Payment Delay, Term Extension, and Interest Rate Reduction		% of Total Class Financing of Receivable
Three Months Ended June 30, 2026
Commercial real estate	$	-	$	-	$	-	$	250	$	-		0.02	%
Commercial - specialized		174		-		-		-		-		0.04	%
Commercial - general		363		48		-		12		-		0.05	%
Consumer:
1-4 family		-		-		-		-		-		0.00	%
Auto loans		-		-		-		-		-		0.00	%
Other consumer		-		-		-		-		-		0.00	%
Construction		-		529		-		-		-		0.37	%
	$	537	$	577	$	-	$	262	$	-		0.04	%

Three Months Ended June 30, 2025
Commercial real estate	$	-	$	-	$	-	$	-	$	-		0.00	%
Commercial - specialized		-		-		-		38		-		0.01	%
Commercial - general		-		-		-		50		10		0.01	%
Consumer:
1-4 family		-		-		-		-		-		0.00	%
Auto loans		44		-		-		-		3		0.02	%
Other consumer		-		-		-		17		-		0.03	%
Construction		-		-		-		529		-		0.52	%
	$	44	$	-	$	-	$	634	$	13		0.02	%

Six Months Ended June 30, 2026
Commercial real estate	$	-	$	-	$	-	$	250	$	-		0.02	%
Commercial - specialized		630		-		-		-		-		0.15	%
Commercial - general		378		67		-		12		-		0.06	%
Consumer:
1-4 family		-		30		-		236		-		0.04	%
Auto loans		-		-		-		-		-		0.00	%
Other consumer		-		-		-		-		-		0.00	%
Construction		-		529		-		598		-		0.79	%
	$	1,008	$	626	$	-	$	1,096	$	-		0.07	%

Six Months Ended June 30, 2025
Commercial real estate	$	-	$	-	$	-	$	-	$	-		0.00	%
Commercial - specialized		-		-		-		38		-		0.01	%
Commercial - general		-		260		-		93		10		0.06	%
Consumer:
1-4 family		-		-		-		-		-		0.00	%
Auto loans		44		-		-		-		3		0.02	%
Other consumer		-		-		-		17		-		0.03	%
Construction		-		-		-		529		-		0.52	%
	$	44	$	260	$	-	$	677	$	13		0.03	%

The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty during the periods indicated below (dollars in thousands):

	Weighted - Average Interest Rate Reduction			Weighted - Average Term Extension (Months)
Three Months Ended June 30, 2026
Commercial real estate		0.00	%		13
Commercial - specialized		0.00	%		-
Commercial - general		0.00	%		6
Consumer:
1-4 Family residential		0.00	%		-
Auto loans		0.00	%		-
Other consumer		0.00	%		-
Construction		0.00	%		61

Three Months Ended June 30, 2025
Commercial real estate		0.00	%		-
Commercial - specialized		0.00	%		14
Commercial - general		1.00	%		40
Consumer:
1-4 Family residential		0.00	%		-
Auto loans		1.20	%		50
Other consumer		0.00	%		5
Construction		0.00	%		3

Six Months Ended June 30, 2026
Commercial real estate		0.00	%		13
Commercial - specialized		0.00	%		-
Commercial - general		1.00	%		7
Consumer:
1-4 Family residential		0.00	%		45
Auto loans		1.20	%		-
Other consumer		0.00	%		-
Construction		0.00	%		35

Six Months Ended June 30, 2025
Commercial real estate		0.00	%		-
Commercial - specialized		0.00	%		14
Commercial - general		1.00	%		36
Consumer:
1-4 Family residential		0.00	%		-
Auto loans		1.20	%		50
Other consumer		0.00	%		5
Construction		0.00	%		3

The Company closely monitors the performance of 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 last twelve months at the dates indicated (dollars in thousands):

	Current		30-89 Days Past Due		90 Days or More Past Due		Nonaccrual
June 30, 2026
Commercial real estate	$	250	$	-	$	-	$	-
Commercial - specialized		174		-		-		456
Commercial - general		468		-		15		382
Consumer:
1-4 Family residential		103		-		30		133
Auto loans		26		-		-		-
Other consumer		-		-		-		-
Construction		529		-		-		598
	$	1,550	$	-	$	45	$	1,569

June 30, 2025
Commercial real estate	$	63	$	45	$	27	$	150
Commercial - specialized		-		38		-		-
Commercial - general		605		-		-		139
Consumer:
1-4 Family residential		185		262		60		815
Auto loans		48		-		-		-
Other consumer		17		-		-		-
Construction		529		-		-		141
	$	1,447	$	345	$	87	$	1,245

On an ongoing basis, the performance of modified loans is monitored for subsequent payment default. Payment default is defined as movement to nonperforming status, foreclosure, or charge-off. During the three months ended June 30, 2026, the Company had $100 thousand in loans made to borrowers experiencing financial difficulty that were modified during the last twelve months that subsequently defaulted. During the six months ended June 30, 2026, the Company had $224 thousand in loans made to borrowers experiencing financial difficulty that were modified during the last twelve months that subsequently defaulted.

During the three months ended June 30, 2025, the Company had $865 thousand in loans made to borrowers experiencing financial difficulty that were modified during the last twelve months that subsequently defaulted. During the six months ended June 30, 2025, the Company had $923 thousand in loans made to borrowers experiencing financial difficulty that were modified during the last twelve months that subsequently defaulted.

Upon the Company’s determination that a modified loan has subsequently been deemed to not be fully collectible, the uncollectible amount is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.