LOANS AND ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2025

LOANS AND ALLOWANCE FOR CREDIT LOSSES

LOANS AND ALLOWANCE FOR CREDIT LOSSES

NOTE 3 — LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following table presents outstanding balances by loan class prior to allocation of net deferred fees and costs, as well as the balance of total loans held for investment after allocation of net deferred fees and costs and net loans after allocation of the allowance for credit losses as of December 31, 2025 and 2024.

(Dollars in thousands)	December 31,		December 31,
	2025		2024
Real Estate	$	853,668	$	850,656
Agricultural		984		936
Commercial and Industrial		66,924		66,706
Consumer		4,953		6,390
State and Political Subdivisions		20,132		22,138
Subtotal: Total Loans		946,661		946,826
Net Deferred Fees and Costs		624		888
Subtotal: Total Loans Held for Investment		947,285		947,714
Loans Held for Sale		1,140		737
Allowance for Credit Losses		(9,412)		(7,672)
Net Loans	$	939,013	$	940,779

The following table presents the classes of the loan portfolio summarized by risk rating and year of origination and year-to-date gross charge offs by loan portfolio summarized by year of origination as of December 31, 2025 and 2024.

December 31, 2025:
(Dollars in thousands)
Real Estate:		2025		2024		2023		2022		2021		Prior		Total
1-6 Pass	$	105,385		98,017		100,585		143,520		105,700		272,003	$	825,210
7    Special Mention		863		93		1,995		282		804		—		4,037
8    Substandard		80		—		—		3,389		1,260		19,692		24,421
9    Doubtful		—		—		—		—		—		—		—
Total Real Estate Loans	$	106,328	$	98,110	$	102,580	$	147,191	$	107,764	$	291,695	$	853,668
Agricultural:		2025		2024		2023		2022		2021		Prior		Total
1-6 Pass	$	24		168		151		24		—		617	$	984
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Total Agricultural Loans	$	24	$	168	$	151	$	24	$	—	$	617	$	984
Commercial and Industrial:		2025		2024		2023		2022		2021		Prior		Total
1-6 Pass	$	14,374		6,297		15,040		4,414		3,303		23,186	$	66,614
7    Special Mention		—		300		—		—		—		—		300
8    Substandard		—		—		10		—		—		—		10
9    Doubtful		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	14,374	$	6,597	$	15,050	$	4,414	$	3,303	$	23,186	$	66,924
Consumer:		2025		2024		2023		2022		2021		Prior		Total
1-6 Pass	$	1,593		1,310		657		337		340		693	$	4,930
7    Special Mention		—		—		—		—		—		13		13
8    Substandard		—		—		—		—		—		10		10
9    Doubtful		—		—		—		—		—		—		—
Total Consumer Loans	$	1,593	$	1,310	$	657	$	337	$	340	$	716	$	4,953
State and Political Subdivisions:		2025		2024		2023		2022		2021		Prior		Total
1-6 Pass	$	861		—		1,139		1,374		12,528		4,230	$	20,132
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Total State and Political Subdivision Loans	$	861	$	—	$	1,139	$	1,374	$	12,528	$	4,230	$	20,132
Total Loans:		2025		2024		2023		2022		2021		Prior		Total
1-6 Pass	$	122,237		105,792		117,572		149,669		121,871		300,729	$	917,870
7    Special Mention		863		393		1,995		282		804		13		4,350
8    Substandard		80		—		10		3,389		1,260		19,702		24,441
9    Doubtful		—		—		—		—		—		—		—
Total Loans	$	123,180	$	106,185	$	119,577	$	153,340	$	123,935	$	320,444	$	946,661

		2025		2024		2023		2022		2021		Prior		Total
Gross Charge Offs:
Real Estate	$	—		—		10		2,000		—		7	$	2,017
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		442		500		—		—		942
Consumer		1		8		7		3		2		14		35
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	1	$	8	$	459	$	2,503	$	2	$	21	$	2,994

As of December 31, 2024:
(Dollars in thousands)
Real Estate:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	103,734		114,225		167,282		119,406		101,748		216,890	$	823,285
7    Special Mention		—		—		76		225		—		1,239		1,540
8    Substandard		—		—		4,529		568		4,093		16,641		25,831
9    Doubtful		—		—		—		—		—		—		—
Total Real Estate Loans	$	103,734	$	114,225	$	171,887	$	120,199	$	105,841	$	234,770	$	850,656
Agricultural:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	59		223		43		—		—		611	$	936
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Total Agricultural Loans	$	59	$	223	$	43	$	—	$	—	$	611	$	936
Commercial and Industrial:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	8,481		16,252		8,888		4,544		3,086		24,998	$	66,249
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		420		—		—		12		25		457
9    Doubtful		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	8,481	$	16,672	$	8,888	$	4,544	$	3,098	$	25,023	$	66,706
Consumer:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	2,962		1,292		718		577		71		764	$	6,384
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		6		6
9    Doubtful		—		—		—		—		—		—		—
Total Consumer Loans	$	2,962	$	1,292	$	718	$	577	$	71	$	770	$	6,390
State and Political Subdivisions:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	—		1,232		2,739		13,338		—		4,829	$	22,138
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Total State and Political Subdivision Loans	$	—	$	1,232	$	2,739	$	13,338	$	—	$	4,829	$	22,138

Total Loans:		2024		2023		2022		2021		2020		Prior		Total
1-6 Pass	$	115,236	$	133,224	$	179,670	$	137,865	$	104,905	$	248,092	$	918,992
7    Special Mention		—		—		76		225		—		1,239		1,540
8    Substandard		—		420		4,529		568		4,105		16,672		26,294
9    Doubtful		—		—		—		—		—		—		—
Total Loans	$	115,236	$	133,644	$	184,275	$	138,658	$	109,010	$	266,003	$	946,826
		2024		2023		2022		2021		2020		Prior		Total
Gross Charge Offs:
Real Estate	$	—		—		—		—		—		345	$	345
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		—		—		—		20		—		504		524
Consumer		—		15		29		11		8		6		69
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	—	$	15	$	29	$	31	$	8	$	855	$	938

State and Political Subdivision loans include loans categorized as tax-free in the amount of $20,132,000 as of December 31, 2025 and $22,138,000 as of December 31, 2024. Commercial and Industrial loans include $3,902,000 of Government Guaranteed Loans (“GGLs”) as of December 31, 2025 and $4,306,000 of GGLs as of December 31, 2024.

Loans to related parties are included in the figures above and are summarized in Note 13 – Related Party Transactions.

The activity in the allowance for credit losses by loan class is summarized below for the years ended December 31, 2025 and 2024.

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the year ended December 31, 2025:
Allowance for Credit Losses:
Beginning balance January 1, 2025	$	7,215	$	2	$	313	$	98	$	44	$	7,672
Charge-offs		(2,017)		—		(942)		(35)		—		(2,994)
Recoveries		1		—		29		3		—		33
Provision for Credit Losses		3,637		—		1,052		8		4		4,701
Ending Balance	$	8,836	$	2	$	452	$	74	$	48	$	9,412
Ending balance: individually
evaluated for impairment	$	973	$	—	$	—	$	—	$	—	$	973
Ending balance: collectively
evaluated for impairment	$	7,863	$	2	$	452	$	74	$	48	$	8,439
Reserve for Unfunded Lending Commitments	$	54	$	—	$	24	$	—	$	12	$	90
Loans Held for Investment:
Ending Balance	$	853,668	$	984	$	66,924	$	4,953	$	20,132	$	946,661
Ending balance: individually
evaluated for impairment	$	16,763	$	279	$	10	$	—	$	—	$	17,052
Ending balance: collectively
evaluated for impairment	$	836,905	$	705	$	66,914	$	4,953	$	20,132	$	929,609

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the year ended December 31, 2024:
Allowance for Credit Losses:
Beginning balance January 1, 2024		6,539		1		265		78		42		6,925
Charge-offs		(345)		—		(524)		(69)		—		(938)
Recoveries		21		—		19		5		—		45
Provision for Credit Losses		1,000		1		553		84		2		1,640
Ending Balance	$	7,215	$	2	$	313	$	98	$	44	$	7,672
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	7,215	$	2	$	313	$	98	$	44	$	7,672
Reserve for Unfunded Lending Commitments	$	85	$	—	$	17	$	—	$	—	$	102
Loans Held for Investment:
Ending Balance	$	850,656	$	936	$	66,706	$	6,390	$	22,138	$	946,826
Ending balance: individually
evaluated for impairment	$	4,214	$	309	$	—	$	—	$	—	$	4,523
Ending balance: collectively
evaluated for impairment	$	846,442	$	627	$	66,706	$	6,390	$	22,138	$	942,303

The Corporation’s activity in the allowance for credit losses on unfunded commitments for the years ended December 31, 2025 and 2024 was as follows:

(Dollars in thousands)
	2025		2024
Balance at January 1	$	102	$	166
(Release of) provision for credit losses on unfunded commitments		(12)		(64)
Balance at December 31	$	90	$	102

During the year ended December 31, 2025, there were six loans to borrowers experiencing financial difficulty that had modifications granted, carrying a combined post-modification recorded investment of $12,671,000. Four loans to borrowers experiencing financial difficulty were modified during the fourth quarter of 2025. The loans experiencing modifications during the fourth quarter of 2025 included one loan carrying a post modification recorded investment of $1,983,000 for which the modification allowed a full payment deferral period of three months, one loan carrying a post modification recorded investment of $8,000 for which the modification allowed interest-only payments for a period of six months, one loan carrying a post modification recorded investment of $9,716,000 for which the modification allowed taxes to be paid by the Corporation on behalf of the borrower and appended on to the principal amount outstanding on the loan, and one loan carrying a post modification balance of $529,000 for which the modification allowed interest-only payments for a period of six months. Two modifications of loans to borrowers experiencing financial difficulty were completed during the second quarter of 2025, one on a loan carrying a post modification recorded investment of $107,000 and one on a loan carrying a post modification recorded investment of $372,000, both of which allowed a period of interest-only payments of eleven and twelve months, respectively. The two loans modified during the second quarter of 2025 were subsequently modified again during the fourth quarter of 2025 which allowed an extension of interest-only payments on each loan for an additional period of four months. There were four modifications granted on loans to borrowers experiencing financial difficulty during the year ended December 31, 2024 which carried a combined post modification recorded investment of $10,183,000. Two modifications of loans to borrowers experiencing financial difficulty were completed during the fourth quarter of 2024, one on a loan carrying a post modification recorded investment of $174,000 to extend the maturity date of the loan by six months and one on a loan carrying a post

modification recorded investment of $434,000 to release a portion of the real estate securing the loan. One modification of a loan to a borrower experiencing financial difficulty was completed during the third quarter of 2024 to extend the maturity date of the loan by ten months. The loan carried a post modification recorded investment of $120,000. One modification of a loan to a borrower experiencing financial difficulty was completed during the first quarter of 2024 and allowed a period of interest-only payments of six months. The loan carried a post modification recorded investment of $9,455,000.

The outstanding recorded investment of loans to borrowers experiencing financial difficulty was $12,661,000 at December 31, 2025 compared to $10,193,000 at December 31, 2024. There were no unfunded commitments on modified loans to borrowers experiencing financial difficulty as of December 31, 2025 or December 31, 2024.

The following table presents the outstanding recorded investment of loans to borrowers experiencing financial difficulty as of December 31, 2025 and December 31, 2024. There were six loan modifications granted on loans to borrowers experiencing financial difficulty as of December 31, 2025 and four loan modifications granted on loans to borrowers experiencing financial difficulty as of December 31, 2024.

(Dollars in thousands)
	December 31, 2025
Modifications of Loans to Borrowers Experiencing Financial Difficulty:				Recorded Investment
	Number of	Recorded		% of Loan
	Contracts	Investment		Segment
Real Estate:
Non-Accrual	1	$	9,703	1.14%
Accruing	4		2,951	0.35%
Subtotal - Real Estate:	5		12,654	1.48%
Commercial and Industrial:
Non-Accrual	—	$	—	0.00%
Accruing	1		7	0.01%
Subtotal - Commercial and Industrial:	1		7	0.01%
Total	6	$	12,661	1.34%
(Dollars in thousands)
	December 31, 2024
Modifications of Loans to Borrowers Experiencing Financial Difficulty:				Recorded Investment
	Number of	Recorded		% of Loan
	Contracts	Investment		Segment
Real Estate:
Non-Accrual	—	$	—	0.00%
Accruing	3		10,019	1.18%
Subtotal - Real Estate:	3		10,019	1.18%
Commercial and Industrial:
Non-Accrual	—	$	—	0.00%
Accruing	1		174	0.26%
Subtotal - Commercial and Industrial:	1		174	0.26%
Total	4	$	10,193	1.08%

At December 31, 2025, there were two modifications of loans to borrowers experiencing financial difficulty totaling $439,000 that were not in compliance with the terms of their restructure compared to December 31, 2024 when there were no modifications of loans to borrowers experiencing financial difficulty that were not in compliance with the terms of their restructure.

Of the modifications of loans to borrowers experiencing financial difficulty that were completed during the twelve months preceding December 31, 2025, one loan carrying a post modification recorded investment of $107,000 experienced a payment default during the year ended December 31, 2025, but the loan was less than 30 days past due as of December 31, 2025. Of the modifications of loans to borrowers experiencing financial difficulty that were completed during the twelve months preceding December 31, 2024, two loans experienced payment defaults during the year ended December 31, 2024. One loan carrying a post modification recorded investment of $9,455,000 experienced a payment default during the first quarter of 2024 and a loan carrying a post modification outstanding recorded investment of $120,000 experienced a payment default during the fourth quarter of 2024. Both loans were paid current as of December 31, 2024.

The following table presents information regarding modifications of loans to borrowers experiencing financial difficulty that were completed during the years ended December 31, 2025 and 2024.

(Dollars in thousands)	For the Year Ended December 31, 2025
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	5	$	12,350	$	12,664	$	12,654
Commercial & Industrial	1		7		7		7
Total	6	$	12,357	$	12,671	$	12,661

(Dollars in thousands)	For the Year Ended December 31, 2024
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	3	$	10,009	$	10,009	$	10,019
Commercial & Industrial	1		174		174		174
Total	4	$	10,183	$	10,183	$	10,193

The following table provides detail regarding the types of loan modifications made for borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024.

	For the Year Ended December 31, 2025
	Rate	Term	Payment		Number
	Modification	Modification	Modification	Other	Modified
Real Estate	—	—	4	1	5
Commercial & Industrial	—	—	1	—	1
Total	—	—	5	1	6

“Other” loan modification completed during the year ended December 31, 2025 consisted of payment of taxes by the Corporation on behalf of the borrower, with the amount appended onto the principal balance outstanding on the loan.

	For the Year Ended December 31, 2024
	Rate	Term	Payment		Number
	Modification	Modification	Modification	Other	Modified
Real Estate	—	—	3	—	3
Commercial & Industrial	—	—	1	—	1
Total	—	—	4	—	4

The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s non-accrual loans are summarized below at December 31, 2025 and 2024.

(Dollars in thousands)	December 31, 2025
	Recorded		Recorded				Unpaid		Unpaid
	Investment		Investment				Principal		Principal		Total
	With		With No		Total		Balance With		Balance With		Unpaid
	Related		Related		Recorded		Related		No Related		Principal		Related
	Allowance		Allowance		Investment		Allowance		Allowance		Balance		Allowance
Real Estate	$	9,703	$	7,060	$	16,763	$	9,703	$	11,049	$	20,752	$	973
Commercial & Industrial		—		10		10		—		25		25		—
Total	$	9,703	$	7,070	$	16,773	$	9,703	$	11,074	$	20,777	$	973

(Dollars in thousands)		December 31, 2024
	Recorded		Recorded				Unpaid		Unpaid
	Investment		Investment				Principal		Principal		Total
	With		With No		Total		Balance With		Balance With		Unpaid
	Related		Related		Recorded		Related		No Related		Principal		Related
	Allowance		Allowance		Investment		Allowance		Allowance		Balance		Allowance
Real Estate	$	—	$	4,214	$	4,214	$	—	$	6,203	$	6,203	$	—
Total	$	—	$	4,214	$	4,214	$	—	$	6,203	$	6,203	$	—

The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan.

The following table presents the collateral-dependent loans by segment for the year ended December 31, 2025 and 2024.

(Dollars in thousands)
December 31, 2025
Loan Segment/Collateral Type	Real Estate		Other
Real Estate:
1-4 Family Real Estate	$	328	$	—
Multifamily Real Estate		1,603		—
Non-owner Occupied, Non-Farm, Non-Residential Real Estate		3,884		—
Owner Occupied, Non-Farm, Non-Residential Real Estate		10,948		—
Subtotal - Real Estate:		16,763		—
Commercial & Industrial
Commercial Motor Vehicle	$	—	$	10
Subtotal - Commercial & Industrial:		—		10
Agricultural:
Stock	$	—	$	279
Subtotal - Agricultural:		—		279
Total	$	16,763	$	289
(Dollars in thousands)
December 31, 2024
Loan Segment/Collateral Type	Real Estate		Other
Real Estate:
1-4 Family Real Estate	$	247	$	—
Multifamily Real Estate		3,044		—
Owner Occupied, Non-Farm, Non-Residential Real Estate		923		—
Subtotal - Real Estate:		4,214		—
Agricultural:
Stock	$	—	$	309
Subtotal - Agricultural:		—		309
Total	$	4,214	$	309

At December 31, 2024 and 2025, there were no commitments to lend additional funds with respect to individually evaluated loans.

Total non-performing assets (which includes loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest) as of December 31, 2025 and 2024 were as follows:

(Dollars in thousands)	December 31,		December 31,
	2025		2024
Real Estate	$	16,763	$	4,214
Agricultural		—		—
Commercial and Industrial		10		—
Consumer		—		—
State and Political Subdivisions		—		—
Total non-accrual loans		16,773		4,214
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		146		756
Total non-performing assets	$	16,919	$	4,970

If interest on non-accrual loans had been accrued at original contract rates, interest income would have increased by $2,689,000 in 2025 and $2,371,000 in 2024.

There were no foreclosed assets held for resale at December 31, 2025 or 2024. Consumer mortgage loans secured by residential real estate for which the Corporation entered into formal foreclosure proceedings but for which physical possession of the property has yet to be obtained amounted to $0 at December 31, 2025 and 2024. When applicable, consumer mortgage loans secured by residential real estate for which the Corporation has entered into formal foreclosure proceedings but for which physical possession has yet to be obtained are not included in the foreclosed asset balances.

The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2025 and 2024:

(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
December 31, 2025:
Real Estate	$	3,193	$	2,246	$	6,684	$	12,123	$	841,545	$	853,668	$	146
Agricultural		—		—		—		—		984		984		—
Commercial and Industrial		333		24		10		367		66,557		66,924		—
Consumer		126		—		—		126		4,827		4,953		—
State and Political Subdivisions		—		—		—		—		20,132		20,132		—
Total	$	3,652	$	2,270	$	6,694	$	12,616	$	934,045	$	946,661	$	146

(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
December 31, 2024:
Real Estate	$	4,247	$	221	$	4,970	$	9,438	$	841,218	$	850,656	$	756
Agricultural		—		—		—		—		936		936		—
Commercial and Industrial		378		—		—		378		66,328		66,706		—
Consumer		11		2		—		13		6,377		6,390		—
State and Political Subdivisions		—		—		—		—		22,138		22,138		—
Total	$	4,636	$	223	$	4,970	$	9,829	$	936,997	$	946,826	$	756

.