LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2026

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Summary of outstanding loan balances by loan class prior to allocation of net deferred fees and costs

(Dollars in thousands)	June 30,		December 31,
	2026		2025
Real Estate	$	845,218	$	853,668
Agricultural		1,241		984
Commercial and Industrial		68,025		66,924
Consumer		4,619		4,953
State and Political Subdivisions		29,320		20,132
Subtotal: Total Loans		948,423		946,661
Net Deferred Fees and Costs		425		624
Subtotal: Total Loans Held for Investment		948,848		947,285
Loans Held for Sale		1,483		1,140
Allowance for Credit Losses		(8,779)		(9,412)
Net Loans	$	941,552	$	939,013

Schedule of classes of the loan portfolio summarized by risk rating

June 30, 2026:
(Dollars in thousands)
Real Estate:		2026		2025		2024		2023		2022		Prior		Total
1-6 Pass	$	67,619		101,222		93,065		95,093		129,940		326,094	$	813,033
7    Special Mention		—		213		92		1,976		279		4,051		6,611
8    Substandard		1,991		571		—		—		3,742		19,270		25,574
9    Doubtful		—		—		—		—		—		—		—
Total Real Estate Loans	$	69,610	$	102,006	$	93,157	$	97,069	$	133,961	$	349,415	$	845,218
Agricultural:		2026		2025		2024		2023		2022		Prior		Total
1-6 Pass	$	—		114		155		212		22		738	$	1,241
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Total Agricultural Loans	$	—	$	114	$	155	$	212	$	22	$	738	$	1,241
Commercial and Industrial:		2026		2025		2024		2023		2022		Prior		Total
1-6 Pass	$	5,720		13,983		5,287		5,483		3,920		23,504	$	57,897
7    Special Mention		—		716		299		9,040		—		—		10,055
8    Substandard		10		—		—		—		63		—		73
9    Doubtful		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	5,730	$	14,699	$	5,586	$	14,523	$	3,983	$	23,504	$	68,025
Consumer:		2026		2025		2024		2023		2022		Prior		Total
1-6 Pass	$	1,205		992		891		460		230		817	$	4,595
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		14		—		—		—		—		10		24
9    Doubtful		—		—		—		—		—		—		—
Total Consumer Loans	$	1,219	$	992	$	891	$	460	$	230	$	827	$	4,619

State and Political Subdivisions:		2026		2025		2024		2023		2022		Prior		Total
1-6 Pass	$	8,894		1,324		—		1,127		1,374		16,601	$	29,320
7    Special Mention		—		—		—		—		—		—		—
8    Substandard		—		—		—		—		—		—		—
9    Doubtful		—		—		—		—		—		—		—
Total State and Political Subdivision Loans	$	8,894	$	1,324	$	—	$	1,127	$	1,374	$	16,601	$	29,320
Total Loans:		2026		2025		2024		2023		2022		Prior		Total
1-6 Pass	$	83,438		117,635		99,398		102,375		135,486		367,754	$	906,086
7    Special Mention		—		929		391		11,016		279		4,051		16,666
8    Substandard		2,015		571		—		—		3,805		19,280		25,671
9    Doubtful		—		—		—		—		—		—		—
Total Loans	$	85,453	$	119,135	$	99,789	$	113,391	$	139,570	$	391,085	$	948,423
		2026		2025		2024		2023		2022		Prior		Total
Gross Charge Offs:
Real Estate	$	—		—		—		—		—		—	$	—
Agricultural		—		—		—		—		—		—		—
Commercial and Industrial		7		—		—		—		—		—		7
Consumer		—		—		17		11		—		16		44
State and Political Subdivisions		—		—		—		—		—		—		—
Total Gross Charge Offs	$	7	$	—	$	17	$	11	$	—	$	16	$	51

As of 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

Schedule of loans individually or collectively evaluated for their impairment and related allowance, by loan class

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the three months ended June 30, 2026:
Allowance for Credit Losses:
Beginning balance	$	8,462	$	5	$	441	$	82	$	48	$	9,038
Charge-offs		—		—		(7)		(10)		—		(17)
Recoveries		32		—		25		—		—		57
(Release of) Provision for Credit Losses		(289)		(2)		(36)		5		23		(299)
Ending Balance	$	8,205	$	3	$	423	$	77	$	71	$	8,779

(Dollars in thousands)									State and
	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the six months ended June 30, 2026:
Allowance for Credit Losses:
Beginning balance January 1, 2026	$	8,836	$	2	$	452	$	74	$	48	$	9,412
Charge-offs		—		—		(7)		(44)		—		(51)
Recoveries		74		—		33		—		—		107
Provision for Credit Losses		(705)		1		(55)		47		23		(689)
Ending Balance	$	8,205	$	3	$	423	$	77	$	71	$	8,779
Ending balance: individually
evaluated for impairment	$	707	$	—	$	—	$	—	$	—	$	707
Ending balance: collectively
evaluated for impairment	$	7,498	$	3	$	423	$	77	$	71	$	8,072
Reserve for Unfunded Lending Commitments	$	55	$	—	$	18	$	—	$	12	$	85
Loans Held for Investment:
Ending Balance	$	845,218	$	1,241	$	68,025	$	4,619	$	29,320	$	948,423
Ending balance: individually
evaluated for impairment	$	19,362	$	279	$	—	$	—	$	—	$	19,641
Ending balance: collectively
evaluated for impairment	$	825,856	$	962	$	68,025	$	4,619	$	29,320	$	928,782

(Dollars in thousands)	Real				Commercial					Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the three months ended June 30, 2025:
Allowance for Loan Losses:
Beginning balance	$	7,572	$	2	$	341	$	94	$	59	$	8,068
Charge-offs		(17)		—		(45)		(8)		—		(70)
Recoveries		—		—		1		—		—		1
Provision for Credit Losses		(262)		1		32		(2)		(6)		(237)
Ending Balance	$	7,293	$	3	$	329	$	84	$	53	$	7,762

(Dollars in thousands)	Real				Commercial				Political
	Estate		Agricultural		and Industrial		Consumer		Subdivisions		Total
As of and for the six months ended June 30, 2025:
Allowance for Credit Losses:
Beginning balance January 1, 2025	$	7,215	$	2	$	313	$	98	$	44	$	7,672
Charge-offs		(17)		—		(406)		(18)		—		(441)
Recoveries		—		—		16		1		—		17
Provision for Credit Losses		95		1		406		3		9		514
Ending Balance	$	7,293	$	3	$	329	$	84	$	53	$	7,762
Ending balance: individually
evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively
evaluated for impairment	$	7,293	$	3	$	329	$	84	$	53	$	7,762
Reserve for Unfunded Lending Commitments	$	75	$	—	$	20	$	2	$	—	$	97
Loans Held for Investment:
Ending Balance	$	864,608	$	1,108	$	64,908	$	6,295	$	22,016	$	958,935
Ending balance: individually
evaluated for impairment	$	4,190	$	309	$	28	$	—	$	—	$	4,527
Ending balance: collectively
evaluated for impairment	$	860,418	$	799	$	64,880	$	6,295	$	22,016	$	954,408

(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)
	2026		2025
Balance at January 1	$	90	$	102
Recovery of credit losses on unfunded commitments		(5)		(5)
Balance at June 30	$	85	$	97

Schedule of the outstanding recorded investment of TDRs

(Dollars in thousands)
	June 30, 2026
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	5		5,001	0.59%
Subtotal - Real Estate:	5		5,001	0.59%
Commercial and Industrial:
Non-Accrual	—	$	—	0.00%
Accruing	1		299	0.44%
Subtotal - Commercial and Industrial:	1		299	0.44%

Total	6	$	5,300	0.56%
(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%

Schedule of the loan modifications categorized as TDRs

(Dollars in thousands)	For the Three Months Ended June 30, 2026
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	3	$	3,143	$	3,143	$	4,361
Commercial and Industrial	1		300		300		299
Total	4	$	3,443	$	3,443	$	4,660

(Dollars in thousands)	For the Six Months Ended June 30, 2026
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	5	$	3,783	$	3,783	$	5,001

Commercial and Industrial	1	$	300	$	300	$	299
Total	6	$	4,083	$	4,083	$	5,300

(Dollars in thousands)	For the Three Months Ended June 30, 2025
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	1	$	107	$	107	$	107
Total	1	$	107	$	107	$	107
(Dollars in thousands)	For the Six Months Ended June 30, 2025
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Real Estate	1	$	107	$	107	$	107
Total	1	$	107	$	107	$	107

Schedule of loan modifications made for loans categorized as TDRs

	For the Three Months Ended June 30, 2026
	Rate	Term	Payment		Number
	Modification	Modification	Modification	Other	Modified
Real Estate	—	—	2	1	3
Commercial and Industrial	—	1	—	—	1
Total	—	1	2	1	4

	For the Six Months Ended June 30, 2026
	Rate	Term	Payment		Number
	Modification	Modification	Modification	Other	Modified
Real Estate	—	—	3	2	5
Commercial and Industrial	—	1	—	—	1
Total	—	1	3	2	6

	For the Three Months Ended June 30, 2025
	Rate	Term	Payment		Number
	Modification	Modification	Modification	Other	Modified
Real Estate	—	—	1	—	1
Total	—	—	1	—	1
	For the Six Months Ended June 30, 2025
	Rate	Term	Payment		Number
	Modification	Modification	Modification	Other	Modified
Real Estate	—	—	1	—	1
Total	—	—	1	—	1

Schedule of average recorded investment, unpaid principal balance, and the related allowance of the company's non-accrual loans

(Dollars in thousands)	June 30, 2026
	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	$	9,437	$	9,925	$	19,362	$	9,437	$	13,914	$	23,351	$	707
Commercial & Industrial		—		—		—		—		—		—		—
Total	$	9,437	$	9,925	$	19,362	$	9,437	$	13,914	$	23,351	$	707

(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

Schedule of financial receivables that are collateral-dependent loans

(Dollars in thousands)
June 30, 2026
Loan Segment/Collateral Type	Real Estate		Other
Real Estate:
1-4 Family Real Estate	$	2,044	$	—
Multifamily Real Estate		2,419		—
Non-owner Occupied, Non-Farm, Non-Residential Real Estate		3,961		—
Owner Occupied, Non-Farm, Non-Residential Real Estate		10,938		—
Subtotal - Real Estate:		19,362		—
Agricultural:
Stock	$	—	$	279
Subtotal - Agricultural:		—		279
Total	$	19,362	$	279

(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 and Industrial:
Commercial Motor Vehicle	$	—	$	10
Subtotal - Commercial and Industrial:		—		10
Agricultural:
Stock	$	—	$	279
Subtotal - Agricultural:		—		279
Total	$	16,763	$	289

Schedule of total non-performing assets

(Dollars in thousands)	June 30,		December 31,
	2026		2025
Real Estate	$	19,362	$	16,763
Agricultural		—		—
Commercial and Industrial		—		10
Consumer		—		—
State and Political Subdivisions		—		—
Total non-accrual loans		19,362		16,773
Foreclosed assets held for resale		—		—
Loans past-due 90 days or more and still accruing interest		761		146
Total non-performing assets	$	20,123	$	16,919

Schedule of the classes of the loan portfolio, including non-accrual loans and TDRs, summarized by past-due status

(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
June 30, 2026:
Real Estate	$	1,562	$	10,742	$	9,358	$	21,662	$	823,556	$	845,218	$	725
Agricultural		—		—		—		—		1,241		1,241		—
Commercial and Industrial		67		298		36		401		67,624		68,025		36
Consumer		9		3		—		12		4,607		4,619		—
State and Political Subdivisions		—		—		—		—		29,320		29,320		—
Total	$	1,638	$	11,043	$	9,394	$	22,075	$	926,348	$	948,423	$	761

(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