10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (D) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended   ​ ​ ​ ​ ​ ​ ​March 31, 2026

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission File Number   ​ ​ ​ ​ ​ ​ ​001-12103

PEOPLES FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi	64-0709834
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Lameuse and Howard Avenues, Biloxi, Mississippi	39533
(Address of principal executive offices)	(Zip Code)

(228) 435-5511

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	PFBX	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes   ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)  Yes   ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	Smaller reporting company ☒
Non-accelerated filer ☒		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date. Peoples Financial Corporation has only one class of common stock authorized. At April 30, 2026, there were 15,000,000 shares of $1 par value common stock authorized, with 4,617,466 shares issued and outstanding.

Part 1 – Financial Information

Item 1: Financial Statements

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Condition

(in thousands except share data)

	March 31, 2026		December 31, 2025
	(unaudited)		(audited)
Assets
Cash and due from banks	$	57,386	$	19,581
Available for sale securities, amortized cost of $349,623 at March 31, 2026; $323,240 at December 31, 2025		323,543		298,116
Held to maturity securities, fair value of $75,003 at March 31, 2026; $82,435 at December 31, 2025		84,023		91,083
Less: Allowance for credit losses on held to maturity securities		31		31
Held to maturity securities, net		83,992		91,052
Other investments		350		350
Federal Home Loan Bank Stock, at cost		1,182		1,170
Loans		268,814		263,706
Less: Allowance for credit losses on loans and leases		3,100		2,939
Loans, net		265,714		260,767
Bank premises and equipment, net of accumulated depreciation		17,215		17,387
Accrued interest receivable		3,022		3,060
Cash surrender value of life insurance		22,692		22,546
Intangible asset		398		414
Other assets		12,766		12,678
Total assets	$	788,260	$	727,121
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Demand, non-interest bearing	$	187,743	$	172,909
Savings and demand, interest bearing		441,001		393,934
Time, $250,000 or more		12,153		13,591
Other time deposits		25,292		23,995
Total deposits		666,189		604,429
Advances from Federal Home Loan Bank		—		800
Employee and director benefit plans liabilities		19,887		19,881
Other liabilities		789		1,344
Total liabilities		686,865		626,454
Shareholders' Equity:
Common stock, $1 par value, 15,000,000 shares authorized, 4,617,466 shares issued and outstanding at March 31, 2026 and December 31, 2025		4,617		4,617
Surplus		65,780		65,780
Undivided profits		60,186		58,740
Accumulated other comprehensive loss		(29,188)		(28,470)
Total shareholders' equity		101,395		100,667
Total liabilities and shareholders' equity	$	788,260	$	727,121

See Notes to Consolidated Financial Statements.

2

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Operations

(in thousands except per share data) (unaudited)

	Three Months Ended March 31,
	2026		2025
Interest income:
Interest and fees on loans	$	4,209	$	3,396
Interest and dividends on securities:
U. S. Treasuries		934		1,351
Mortgage-backed securities		338		545
States and political subdivisions		917		981
Collateralized mortgage obligations		447		541
Other investments		12		7
Interest on balances due from depository institutions		754		738
Total interest income		7,611		7,559
Interest expense:
Deposits		1,838		1,891
Borrowings		6		—
Total interest expense		1,844		1,891
Net interest income		5,767		5,668
Reduction of credit losses		(8)		(5)
Net interest income after provision for credit losses		5,775		5,673
Non-interest income:
Trust department income and fees		640		626
Service charges on deposit accounts		764		770
Increase in cash surrender value of life insurance		129		120
Other income		248		187
Total non-interest income		1,781		1,703
Non-interest expense:
Salaries and employee benefits		2,665		2,716
Net occupancy		554		563
Equipment rentals, depreciation and maintenance		719		783
FDIC and state banking assessments		98		96
Data processing		302		314
ATM expense		371		291
Legal expense		66		64
Other expense		933		864
Total non-interest expense		5,708		5,691
Income before income taxes		1,848		1,685
Income tax expense		402		375
Net income	$	1,446	$	1,310
Basic and diluted earnings per share	$	0.31	$	0.28
Dividends declared per share	$	—	$	—

See Notes to Consolidated Financial Statements.

3

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(in thousands) (unaudited)

	Three Months Ended March 31,
	2026		2025
Net income	$	1,446	$	1,310
Other comprehensive income (loss):
Net unrealized gain (loss) on available for sale securities, net of tax		(718)		3,144
Total other comprehensive income (loss)		(718)		3,144
Total comprehensive income (loss)	$	728	$	4,454

See Notes to Consolidated Financial Statements.

4

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

For the Three Months Ended March 31, 2026 and March 31, 2025

(in thousands except share data) (unaudited)

								Accumulated
	Number of							Other
	Common	Common				Undivided		Comprehensive
	Shares	Stock		Surplus		Profits		Income (loss)		Total
Balance, January 1, 2025	4,617,466	$	4,617	$	65,780	$	56,491	$	(36,887)	$	90,001
Net income							1,310				1,310
Other comprehensive income (loss)									3,144		3,144
Balance, March 31, 2025	4,617,466	$	4,617	$	65,780	$	57,801	$	(33,743)	$	94,455
Balance, January 1, 2026	4,617,466	$	4,617	$	65,780	$	58,740	$	(28,470)	$	100,667
Net income							1,446				1,446
Other comprehensive income (loss)									(718)		(718)
Balance, March 31, 2026	4,617,466	$	4,617	$	65,780	$	60,186	$	(29,188)	$	101,395

Note: Balances as of January 1, 2026 and 2025 were audited.

See Notes to Consolidated Financial Statements.

5

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities:
Net income	$	1,446	$	1,310
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		402		420
Provision for (reduction of) credit losses		(8)		(5)
Amortization of intangible asset		16		16
(Accretion) amortization of available for sale securities		(175)		(267)
Amortization (accretion) of held to maturity securities		75		92
Increase in cash surrender value of life insurance		(129)		(120)
Change in accrued interest receivable		38		208
Change in deferred tax		(45)		117
Change in other assets		188		366
Change in employee and director benefit plan liabilities and other liabilities		(541)		(946)
Net cash provided by operating activities		1,267		1,191
Cash flows from investing activities:
Proceeds from maturities of available for sale securities		32,704		16,537
Purchases of available for sale securities		(58,911)		(73,655)
Proceeds from maturities of held to maturity securities		6,985		10,476
Redemptions of Federal Home Loan Bank stock		(12)		(6)
Loans, net change		(4,947)		1,918
Acquisition of bank premises and equipment		(230)		(19)
Investment in cash surrender value of life insurance		(11)		(13)
Net cash (used) by investing activities		(24,422)		(44,762)
Cash flows from financing activities:
Demand and savings deposits, net change		61,901		35,505
Time deposits, net change		(141)		(4,244)
Borrowings from Federal Home Loan Bank		40,350		—
Repayments to Federal Home Loan Bank		(41,150)		—
Net cash provided by financing activities		60,960		31,261
Net increase (decrease) in cash and cash equivalents		37,805		(12,310)
Cash and cash equivalents, beginning of period		19,581		107,744
Cash and cash equivalents, end of period	$	57,386	$	95,434

See Notes to Consolidated Financial Statements.

6

PEOPLES FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Ended March 31, 2026 and 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.Basis of Presentation:

Peoples Financial Corporation (the “Company”) is a one-bank holding company headquartered in Biloxi, Mississippi. The Company has two subsidiaries, PFC Service Corp., an inactive company, and The Peoples Bank, Biloxi, Mississippi (the “Bank”). The Bank provides a full range of banking, financial and trust services to state, county and local government entities and individuals and small and commercial businesses operating in those portions of Mississippi, Louisiana and Alabama which are within a fifty-mile radius of the Waveland, Wiggins and Gautier branches, the Bank’s three most outlying locations (the “trade area”).

The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the consolidated financial position of the Company and its subsidiaries as of March 31, 2026 and December 31, 2025 the results of their operations and their cash flows for the periods presented. The interim financial information should be read in conjunction with the annual consolidated financial statements and the notes thereto included in the Company’s 2025 Annual Report and Form 10-K.

CRITICAL ACCOUNTING POLICIES

The results of operations for the quarter and three months ended March 31, 2026, are not necessarily indicative of the results to be expected for the full year.

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for credit losses (ACL) and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income.  

Summary of Significant Accounting Policies - The accounting and reporting policies of the Company conform to GAAP and general practices within the banking industry.

There were no material changes or developments during the reporting period with respect to methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.

Allowance for credit losses

In general, the Company uses a broad range of data to estimate current expected credit losses (“CECL”), including information about past events, current conditions, and reasonable and supportable forecasts relevant to assessing the collectability of the cash flows of financial assets.

CECL requires the Bank to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risk characteristics exist. The Bank has determined that Call Report categories will be utilized, and Management will maintain the option to further segment the portfolio if we deem it beneficial to the analysis.

7

The Company’s loan portfolio segments as of March 31, 2026 and December 31, 2025 were as follows:

Real Estate Loans

Residential-Residential mortgage loans are susceptible to weakening general economic conditions, increases in unemployment rates, and declining real estate values.

Construction-Risk common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements, and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates.

Nonresidential-Risks to this loan category include industry concentration and the inability to monitor the condition of collateral. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt, declines in real estate values, and lack of suitable alternative use for properties. These loans are also susceptible to declines in occupancy rates, business failure, and general economic conditions.

Commercial and Industrial-Risk to this loan category include industry concentration and the practical limitations associated with monitoring the condition of the collateral which often consists of inventory, accounts receivable, and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt.

Other-Risk common to these loans include regulatory risks, unemployment, changes in local economic conditions, and the inability to monitor collateral consisting of personal property.

RECENT ACCOUNTING PRONOUNCEMENTS

There were no new accounting pronouncements issued or adopted during the three months ended March 31, 2026 that are expected to have a material impact on the Company’s consolidated financial statements.

Accounting Standards Update –In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2025-11 (“ASU 2025-11”), Interim Reporting (Topic 270): Narrow-Scope Improvements.  ASU 2025-11 clarifies the applicability, form and content of interim financial statements and disclosures and improves the navigability of the interim reporting guidance in ASC 270.  The amendments introduce a disclosure principle requiring entities to disclose events or changes occurring since the end of the most recent annual reporting period that have a material effect on the entity, and they consolidate interim disclosure requirements from other Topics into ASC 270.  ASU 2025-11 is effective for public business entities for interim reporting periods within annual periods beginning after December 15, 2027, and for all other entities one year later.  Early adoption is permitted. Management has evaluated the impact of the adoption of this standard and determined there would be no material impact to the Company’s consolidated financial position or results of operations.

Accounting Standards Update –In November 2025, the Financial Accounting Standards Board issued Accounting Standards Update 2025-08 (“ASU 2025-08”), Purchased Loans (Topic 326).  ASU 2025-08 updates the credit loss accounting model under Topic 326 by expanding the gross up approach—previously limited to Purchased Credit Deteriorated (PCD) assets—to a broader class of acquired loans called purchased seasoned loans (PSLs). Under the new guidance, entities recognize an allowance for expected credit losses at acquisition with a corresponding increase to the loan’s amortized cost basis, eliminating the prior requirement to record a Day 1 credit loss expense for non PCD loans. This change addresses long-standing stakeholder concerns that the old dual model framework was overly complex, subjective, and created inconsistent and economically counterintuitive outcomes, particularly because expected losses were already embedded in fair value at acquisition.  ASU 2025-08 will be effective for interim and annual periods for fiscal years beginning after December 15, 2026.  Early adoption is permitted for entities that have not yet issued their

8

financial statements.  Management has evaluated the impact of the adoption of this standard and determined there would be no material impact to the Company’s consolidated financial position or results of operation.

2. Earnings Per Share:

Per share data is based on the weighted average shares of common stock outstanding of 4,617,466 for the three months ended March 31, 2026 and 2025, respectively.  The Company has no potentially dilutive shares.

3. Statements of Cash Flows:

The Company has defined cash and cash equivalents as cash and due from banks. Cash and due from banks for the purposes of the Consolidated Statements of Cash Flows, include cash on hand, balances due from banks; which includes non-interest- and interest-bearing accounts, and federal funds sold, all of which mature within ninety days.

The Company paid $1,843,624 and $1,888,799 for the three months ended March 31, 2026 and 2025, respectively, for interest on deposits and borrowings. No federal or state income tax payments were made during the three months ended March 31, 2026 and 2025, respectively. No loans were transferred to other real estate during the three months ended March 31, 2026 and 2025.  

4. Investments:

The Company evaluated credit impairment for individual securities available for sale (AFS) whose fair value was below amortized cost with a more than inconsequential risk of default and where the Company had assessed the decline in fair value significant enough to suggest a credit event occurred.  Due to the zero-credit loss assumption and the considerations applied to the securities AFS, there was no ACL recorded for securities AFS as of March 31, 2026 and December 31, 2025. The Company first established an allowance for credit losses for individual securities held to maturity in 2023 and evaluated impairment for individual securities held to maturity again as of December 31, 2025 and determined an allowance for credit loss of $31,000 was appropriate. No additional impairment was recorded as of March 31, 2026.

The amortized cost, fair value and allowance for credit losses related to securities at March 31, 2026 and December 31, 2025, are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
March 31, 2026	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	148,654		15	$	(4,132)	$	144,537
Mortgage-backed securities		41,858		147		(3,029)		38,976
Collateralized mortgage obligations		59,278		72		(3,628)		55,722
States and political subdivisions		99,833		—		(15,525)		84,308
Total available for sale securities	$	349,623	$	234	$	(26,314)	$	323,543

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
December 31, 2025	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	119,363	$	74	$	(3,907)	$	115,530
Mortgage-backed securities		42,656		134		(2,958)		39,832
Collateralized mortgage obligations		61,282		25		(3,478)		57,829
States and political subdivisions		99,939		—		(15,014)		84,925
Total available for sale securities	$	323,240	$	233	$	(25,357)	$	298,116

9

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
March 31, 2026	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	9,992	$	—	$	(125)	$	9,867	$	—	$	9,992
States and political subdivisions		74,031		11		(8,906)		65,136		(31)		74,000
Total held to maturity securities	$	84,023	$	11	$	(9,031)	$	75,003	$	(31)	$	83,992

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
December 31, 2025	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	14,990	$	10	$	(104)	$	14,896	$	—	$	14,990
States and political subdivisions		76,093		11		(8,565)		67,539		(31)		76,062
Total held to maturity securities	$	91,083	$	21	$	(8,669)	$	82,435	$	(31)	$	91,052

The following table shows a rollforward of the allowance for credit losses on held-to-maturity securities for the three months ended March 31, 2026 and the year ended December 31, 2025 and the three months ended March 31, 2025 and the year ended December 31, 2024 (in thousands):

	State and political
	subdivisions
Balance, December 31, 2025	$	31
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2026	$	31

	State and political
	subdivisions
Balance, December 31, 2024	$	40
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2025	$	40

The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2026 and December 31, 2025, aggregated by credit quality indicators (in thousands):

	March 31, 2026		December 31, 2025
Aaa	$	—	$	—
Aa1/Aa2/Aa3		37,940		44,503
A1/A2		3,123		3,131
Baa1/Baa2		1,000		1,000
Not rated		41,960		42,449
Total	$	84,023	$	91,083

10

At March 31, 2026 and December 31, 2025, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual for the three months ended March 31, 2026 and the year ended December 31, 2025.

The amortized cost and fair value of debt securities at March 31, 2026, (in thousands) by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are excluded from the contractual categories because the timing of principal repayments is dependent on underlying borrower prepayment patterns, which can cause actual maturities to differ materially from stated contractual maturities.  As a result, contractual maturity information is not meaningful for these securities.

	Amortized Cost		Fair Value
Available for sale securities:
Due in one year or less	$	69,011	$	68,954
Due after one year through five years		97,285		91,853
Due after five years through ten years		50,905		43,226
Due after ten years		31,286		24,812
Mortgage-backed securities		41,858		38,976
Collateralized mortgage obligations		59,278		55,722
Total	$	349,623	$	323,543
Held to maturity securities:
Due in one year or less	$	2,200	$	2,191
Due after one year through five years		39,052		37,506
Due after five years through ten years		29,428		25,519
Due after ten years		13,343		9,787
Total	$	84,023	$	75,003

11

Available for sale securities with gross unrealized losses at March 31, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows (in thousands):

		Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
March 31, 2026:
U.S. Treasuries	$	63,904	$	100	$	70,619		4,032		134,523	$	4,132
Mortgage-backed securities		—		—		27,655		3,029		27,655		3,029
Collateralized mortgage obligations		3,724		27		35,788		3,601		39,512		3,628
States and political subdivisions		—		—		84,308		15,525		84,308		15,525
Total	$	67,628	$	127	$	218,370	$	26,187	$	285,998	$	26,314

	Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
December 31, 2025:
U.S. Treasuries	$	4,987	$	2	$	70,701	$	3,905		75,688	$	3,907
Mortgage-backed securities		—		—		28,344		2,958		28,344		2,958
Collateralized mortgage obligations		12,182		29		34,811		3,449		46,993		3,478
States and political subdivisions		1,833		177		83,092		14,837		84,925		15,014
Total	$	19,002	$	208	$	216,948	$	25,149	$	235,950	$	25,357

At March 31, 2026, 19 of the 21 Treasuries, 39 of the 46 mortgage-backed securities, 19 of the 26 collateralized mortgage obligations and 75 of the 75 securities issued by states and political subdivisions contained unrealized losses.

There were no sales of available for sale debt securities for the three months ended March 31, 2026 and March 31, 2025.

Securities with a fair value of $337,660,216 and $262,193,802 at March 31, 2026 and December 31, 2025, respectively, were pledged to secure public deposits, federal funds purchased and other balances required by law.

5. Loans:

The composition of the loan portfolio at March 31, 2026 and December 31, 2025 is as follows (in thousands):

	March 31, 2026		December 31, 2025
Real estate, residential	$	88,460	$	86,980
Real estate, construction		29,836		24,990
Real estate, nonresidential		124,727		124,843
Commercial and industrial		15,373		17,077
Other		10,418		9,816
Total	$	268,814	$	263,706

12

The age analysis of the loan portfolio, segregated by class of loans, as of March 31, 2026, and December 31, 2025 is as follows (in thousands):

													Loans Past
													Due Greater
	Number of Days Past Due												Than 90
					Greater		Total				Total		Days and
	30 - 59		60 - 89		Than 90		Past Due		Current		Loans		Still Accruing
March 31, 2026:
Real estate, residential	$	475	$	—	$	331	$	806	$	87,654	$	88,460	$	—
Real estate, construction		123		—		—		123		29,713		29,836		—
Real estate, nonresidential		322		4		—		326		124,401		124,727		—
Commercial and industrial		9		—		—		9		15,364		15,373		—
Other		33		—		—		33		10,385		10,418		—
Total	$	962	$	4	$	331	$	1,297	$	267,517	$	268,814	$	—
December 31, 2025:
Real estate, residential	$	398	$	274	$	17	$	689	$	86,291	$	86,980	$	—
Real estate, construction		115		—		—		115		24,875		24,990		—
Real estate, nonresidential		104		188		—		292		124,551		124,843		—
Commercial and industrial		—		385		13		398		16,679		17,077		—
Other		24		261		—		285		9,531		9,816		—
Total	$	641	$	1,108	$	30	$	1,779	$	261,927	$	263,706	$	—

The Company monitors the credit quality of its loan portfolio through the use of a loan grading system. A score of 1 – 5 is assigned to the loan based on factors including repayment ability, trends in net worth and/or financial condition of the borrower and guarantors, employment stability, management ability, loan to value fluctuations, the type and structure of the loan, conformity of the loan to bank policy and payment performance. Based on the total score, a loan grade of A, B, C, S, D, E or F is applied. A grade of A will generally be applied to loans for customers that are well known to the Company and that have excellent sources of repayment. A grade of B will generally be applied to loans for customers that have excellent sources of repayment which have no identifiable risk of collection. A grade of C will generally be applied to loans for customers that have adequate sources of repayment which have little identifiable risk of collection. A grade of S will generally be applied to loans for customers who meet the criteria for a grade of C but also warrant additional monitoring by placement on the watch list. A grade of D will generally be applied to loans for customers that are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans with a grade of D have unsatisfactory characteristics such as cash flow deficiencies, bankruptcy filing by the borrower or dependence on the sale of collateral for the primary source of repayment, causing more than acceptable levels of risk. Loans 60 to 89 days past due receive a grade of D. A grade of E will generally be applied to loans for customers with weaknesses inherent in the D classification and in which collection or liquidation in full is questionable. In addition, on a monthly basis the Company determines which loans are 90 days or more past due and assigns a grade of E to them.

A grade of F is applied to loans which are considered uncollectible and of such little value that their continuance in an active bank is not warranted. Loans with this grade are charged off, even though partial or full recovery may be possible in the future.

13

The following tables further disaggregate credit quality disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2026 and December 31, 2025 (in thousands). The Company defines vintage as the later of origination, or restructure date.

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real Estate, Residential Loans:
A, B, or C	$	2,650	$	12,586	$	10,839	$	13,047	$	12,151	$	29,504	$	5,246	$	1,322	$	87,345
S		—		—		—		—		—		45		—		—		45
D		—		—		—		—		—		503		59		—		562
E		—		—		166		—		—		342		—		—		508
F		—		—		—		—		—		—		—		—		—
Total Real Estate Residential Loans	$	2,650	$	12,586	$	11,005	$	13,047	$	12,151	$	30,394	$	5,305	$	1,322	$	88,460
Real Estate, Construction Loans:
A, B, or C	$	1,354	$	1,288	$	2,539	$	420	$	1,252	$	5,044	$	17,809	$	—	$	29,706
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		130		—		—		130
E		—		—		—		—		—		—				—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Construction Loans	$	1,354	$	1,288	$	2,539	$	420	$	1,252	$	5,174	$	17,809	$	—	$	29,836
Real Estate,Nonresidential Loans:
A, B, or C	$	497	$	16,587	$	2,492	$	10,299	$	17,453	$	47,474	$	29,244	$	—	$	124,046
S		—		—		—		—		—		45		—		—		45
D		—		—		—		—		—		636		—		—		636
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Nonresidential Loans	$	497	$	16,587	$	2,492	$	10,299	$	17,453	$	48,155	$	29,244	$	—	$	124,727
Commercial and industrial
A, B, or C	$	139	$	1,911	$	820	$	403	$	282	$	4,157	$	7,652	$	—	$	15,364
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		9		—		—		—		9
F		—		—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	139	$	1,911	$	820	$	403	$	291	$	4,157	$	7,652	$	—	$	15,373
Consumer/Other Loans
A, B, or C	$	1,409	$	3,734	$	2,370	$	1,600	$	457	$	448	$	393	$	—	$	10,411
S		—		—		—		—		—		—		—		—		—
D		—		—		3		—		—		—		4		—		7
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	1,409	$	3,734	$	2,373	$	1,600	$	457	$	448	$	397	$	—	$	10,418

14

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
December 31, 2025:
Real Estate, Residential Loans:
A, B, or C	$	12,886	$	10,060	$	12,735	$	12,435	$	9,218	$	21,004	$	4,519	$	2,982	$	85,839
S		—		—		—		—		—		49		—		—		49
D		—		—		—		—		—		514		58		—		572
E		—		167		—		—		274		79		—		—		520
F		—		—		—		—		—		—		—		—		—
Total Real Estate Residential Loans	$	12,886	$	10,227	$	12,735	$	12,435	$	9,492	$	21,646	$	4,577	$	2,982	$	86,980
Real Estate, Construction Loans:
A, B, or C	$	1,395	$	2,662	$	319	$	1,309	$	1,770	$	3,382	$	13,903	$	—	$	24,740
S		—		—		—		—		—		—		—		—		—
D		—		—		117		—		—		133		—		—		250
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Construction Loans	$	1,395	$	2,662	$	436	$	1,309	$	1,770	$	3,515	$	13,903	$	—	$	24,990
Real Estate,Nonresidential Loans:
A, B, or C	$	16,627	$	2,518	$	10,432	$	19,922	$	9,473	$	41,933	$	23,425	$	—	$	124,330
S		—		—		—		—		—		48		—		—		48
D		—		—		—		—		—		465		—		—		465
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Nonresidential Loans	$	16,627	$	2,518	$	10,432	$	19,922	$	9,473	$	42,446	$	23,425	$	—	$	124,843
Commercial and industrial
A, B, or C	$	2,169	$	875	$	323	$	305	$	2	$	4,222	$	9,168	$	—	$	17,064
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		13		—		—		—		—		13
F		—		—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	2,169	$	875	$	323	$	318	$	2	$	4,222	$	9,168	$	—	$	17,077
Consumer/Other Loans
A, B, or C	$	4,102	$	2,557	$	1,780	$	502	$	236	$	249	$	383	$	—	$	9,809
S		—		—		—		—		—		—		—		—		—
D		—		3		—		—		—		—		4		—		7
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	4,102	$	2,560	$	1,780	$	502	$	236	$	249	$	387	$	—	$	9,816

The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated (in thousands):

	March 31, 2026
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
Real estate, residential	$	344	$	164	$	508
Commercial and industrial		—		9		9
Total	$	344	$	173	$	517

15

	December 31, 2025
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
Real estate, residential	$	352	$	168	$	520
Commercial and industrial		—		13		13
Total	$	352	$	181	$	533

The Company recognized no interest income on nonaccrual loans during the three months ended March 31, 2026 or the year ended December 31, 2025.

The following table represents the accrued interest receivables written off by reversing interest income during the three months ended March 31, 2026 and the year ended December 31, 2025 (in thousands):

	March 31, 2026		December 31, 2025
Real estate, residential	$	—	$	3
Total loans	$	—	$	3

The Company designates individually evaluated loans on nonaccrual status as collateral-dependent loans, as well as other loans that management of the Company designates as having higher risk. Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required.

The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2026 and December 31, 2025 (in thousands):

	March 31, 2026		December 31, 2025
	Residential		Residential
	Properties		Properties
Real estate, residential	$	512	$	523
Commercial and industrial		9		13
Total loans	$	521	$	536

The following tables further disaggregates nonaccrual disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2026 and December 31, 2025 (in thousands). The Company defines vintage as the later of origination or restructure date:

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real estate, residential	$	—	$	—	$	167	$	—	$	—	$	341	$	—	$	—	$	508
Real estate, construction		—		—		—		—		—		—		—		—		—
Real estate, nonresidential		—		—		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		9		—		—		—		9
Consumer/Other		—		—		—		—		—		—		—		—		—
Total Loans on Nonaccrual	$	—	$	—	$	167	$	—	$	9	$	341	$	—	$	—	$	517

16

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
December 31, 2025:
Real estate, residential	$	—	$	167	$	—	$	—	$	274	$	79	$	—	$	—	$	520
Real estate, construction		—		—		—		—		—		—		—		—		—
Real estate, nonresidential		—		—		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		13		—		—		—		—		13
Consumer/Other		—		—		—		—		—		—		—		—		—
Total Loans on Nonaccrual	$	—	$	167	$	—	$	13	$	274	$	79	$	—	$	—	$	533

The Company had no loan modifications made to borrowers experiencing financial difficulty as of March 31, 2026 and  of December 31, 2025.

6. Allowance for Credit Losses:

The following tables show activity in the allowance for credit losses by portfolio class for the three and three months ended March 31, 2026 and 2025 as well as the corresponding recorded investment in loans at the end of each period.

The calculation of the allowance for credit losses under CECL is performed using two primary approaches: a collective approach for pools of loans that have similar risk characteristics using a loss rate analysis, and a specific reserve analysis for credits individually evaluated.

Transactions in the allowance for credit losses for the three ended March 31, 2026 and 2025, and the balances of loans, individually and collectively evaluated for impairment, as of March 31, 2026 and 2025, are as follows (in thousands):

	Real Estate,		Real Estate,		Real Estate,		Commercial
	Residential		Construction		Nonresidential		and Industrial		Other		Total
Three months ended March 31, 2026
Allowance for credit losses
Beginning balance	$	759	$	183	$	1,729	$	108	$	160	$	2,939
Charge-offs		(1)		—		—		—		(56)		(57)
Recoveries		15		9		155		—		39		218
Net provision for credit losses		54		46		(145)		7		38		—
Ending Balance	$	827	$	238	$	1,739	$	115	$	181	$	3,100
Reserve for unfunded lending commitments
Beginning balance	$	2	$	9	$	12	$	15	$	22	$	60
Provision for losses on unfunded commitments		1		(1)		(1)		(3)		(4)		(8)
Ending balance-reserve for unfunded commitments	$	3	$	8	$	11	$	12	$	18	$	52
Total allowance for credit losses	$	830	$	246	$	1,750	$	127	$	199	$	3,152
Allowance for credit losses
Individually evaluated	$	80	$	—	$	—	$	9	$	7	$	96
Collectively evaluated		747		238		1,739		106		174		3,004
Total allowance for credit losses:	$	827	$	238	$	1,739	$	115	$	181	$	3,100
Reserve for unfunded lending commitments
Individually evaluated	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated		3		8		11		12		18		52
Reserve for unfunded lending commitments:		3		8		11		12		18		52
Total allowance for credit losses, March 31, 2026	$	830	$	246	$	1,750	$	127	$	199	$	3,152
Loans, Quarter ended March 31, 2026
Individually evaluated	$	1,070	$	130	$	636	$	9	$	7	$	1,852
Collectively evaluated		87,390		29,706		124,091		15,364		10,411		266,962
Total loans, March 31, 2026	$	88,460	$	29,836	$	124,727	$	15,373	$	10,418	$	268,814

17

	Real Estate,		Real Estate,		Real Estate,		Commercial
	Residential		Construction		Nonresidential		and Industrial		Other		Total
Three months ended March 31, 2025
Allowance for credit losses
Beginning balance	$	676	$	135	$	1,835	$	92	$	244	$	2,982
Charge-offs		—		—		—		—		(53)		(53)
Recoveries		2		9		1		—		28		40
Net provision for credit losses		50		(4)		(70)		(12)		36		—
Ending Balance	$	728	$	140	$	1,766	$	80	$	255	$	2,969
Reserve for unfunded lending commitments
Beginning balance	$	2	$	23	$	10	$	12	$	36	$	83
Provision for losses on unfunded commitments		1		(3)		1		3		(7)		(5)
Ending balance-reserve for unfunded commitments	$	3	$	20	$	11	$	15	$	29	$	78
Total allowance for credit losses	$	731	$	160	$	1,777	$	95	$	284	$	3,047
Allowance for credit losses
Individually evaluated	$	42	$	—	$	—	$	—	$	9	$	51
Collectively evaluated		686		140		1,766		80		246		2,918
Total allowance for credit losses:	$	728	$	140	$	1,766	$	80	$	255	$	2,969
Reserve for unfunded lending commitments
Individually evaluated	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated		3		20		11		15		29		78
Reserve for unfunded lending commitments:		3		20		11		15		29		78
Total allowance for credit losses, March 31, 2025	$	731	$	160	$	1,777	$	95	$	284	$	3,047
Loans, Quarter ended March 31, 2025
Individually evaluated	$	936	$	261	$	470	$	21	$	9	$	1,697
Collectively evaluated		79,427		17,277		110,044		12,338		10,862		229,948
Total loans, March 31, 2025	$	80,363	$	17,538	$	110,514	$	12,359	$	10,871	$	231,645

The following table further disaggregates gross charge-off disclosures by amortized cost by credit quality indicator, class, and year of origination for the three month periods ended March 31, 2026 and March 31, 2025 (in thousands). The Company defines vintage as the later of origination or restructure date.

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real estate, residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
A,B, or C		—		—		—		—		—		—		—		—		—
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		—		1		—		—		1
F		—		—		—		—		—		—		—		—		—
Total Real estate, nonresidential loans	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1
Consumer/Other
A,B, or C	$	55	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	56
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	55	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	56
Total Gross Loan Chargeoffs:	$	55	$	1	$	—	$	—	$	—	$	1	$	—	$	—	$	57

18

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
March 31, 2025:
Consumer/Other
A,B, or C	$	48	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	48
S		—		—		—		—		—		—		—		—		—
D		—		2		—		—		—		—		—		—		2
E		—		3		—		—		—		—		—		—		3
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	48	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	53
Total Gross Loan Chargeoffs:	$	48	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	53

7. Shareholders’ Equity:

There were no dividends declared during the three month periods ended March 31, 2026 and March 31, 2025.

The components of accumulated other comprehensive income, net of tax, as of March 31, 2026 and December 31, 2025, are as follows:

	March 31, 2026		December 31, 2025
Beginning balance accumulated other comprehensive (loss) income	$	(28,470)	$	(36,887)
Net unrealized gain (loss) on available for sale securities, net of tax		(718)		9,077
(Loss) gain from unfunded post-retirement benefit obligation, net of tax		—		(660)
Ending balance accumulated other comprehensive (loss)income	$	(29,188)	$	(28,470)

8. Fair Value Measurements and Disclosures:

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available for sale securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record other assets at fair value on a non-recurring basis, such as impaired loans and ORE. These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments.

Fair Value Hierarchy

The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2 - Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques.

19

Following is a description of valuation methodologies used to determine the fair value of financial assets and liabilities.

Cash and Due from Banks

The carrying amount shown as cash and due from banks approximates fair value.

Investments

The fair value of available for sale securities and held to maturity securities is based on quoted market prices. The Company’s available for sale securities are reported at their estimated fair value and held to maturity securities are reported at their amortized cost, and their estimated fair value, which is determined utilizing several sources, is disclosed in the financial statements and footnotes. The primary source is ICE Data Pricing and Reference Data, LLC (“ICE”) which purchased Interactive Data Corporation (“IDC”) but kept the IDC methodologies. Those methodologies include utilizing pricing models that vary based on asset class and include available trade, bid and other market information and whose methodology includes broker quotes, proprietary models and vast descriptive databases. Another source for determining fair value is matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark securities. The Company’s available for sale securities and held to maturity securities for which fair value is determined through the use of such pricing models and matrix pricing are classified as Level 2 assets.

Loans

The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings for the remaining maturities. The cash flows considered in computing the fair value of such loans are segmented into categories relating to the nature of the contract and collateral based on contractual principal maturities. Appropriate adjustments are made to reflect probable credit losses. Cash flows have not been adjusted for such factors as prepayment risk or the effect of the maturity of balloon notes. The fair value of floating rate loans is estimated to be its carrying value. At each reporting period, the Company determines which loans are collateral dependent. Accordingly, the Company’s collateral dependent loans are reported at their estimated fair value on a non-recurring basis. An allowance for each loan, which is generally collateral-dependent, is calculated based on the fair value of its collateral. The fair value of the collateral is based on appraisals performed by third-party valuation specialists. Factors including the assumptions and techniques utilized by the appraiser are considered by Management. If the recorded investment in the collateral dependent loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for credit losses. Collateral dependent loans are non-recurring Level 3 assets.

Other Real Estate

In the course of lending operations, Management may determine that it is necessary to foreclose on the related collateral. Other real estate acquired through foreclosure or repossession is carried at fair value, less estimated costs to sell. The fair value of the collateral is based on appraisals performed by third-party valuation specialists or internally prepared valuations. Other real estate is a non-recurring Level 3 asset.

Deposits

The fair value of non-interest bearing demand and interest bearing savings and demand deposits is the amount reported in the financial statements. The fair value of time deposits is estimated by discounting the cash flows using current rates of time deposits with similar remaining maturities. The cash flows considered in computing the fair value of such deposits are based on contractual maturities for automatic renewal at current interest rates unless the bank plans to purposely reduce time deposit balances as they mature.  Non-interest deposits are non-recurring Level 1 liabilities, while interest bearing deposits are classified as Level 3 liabilities.

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Borrowings from Federal Home Loan Bank

The fair value of Federal Home Loan Bank (“FHLB”) fixed rate borrowings is estimated using discounted cash flows based on current incremental borrowing rates for similar types of borrowing arrangements. The fair value of FHLB variable rate borrowings is estimated to be its carrying value.  Borrowings from Federal Home Loan Bank are classified as Level 2 liabilities.

The balances of available for sale securities, which are the only assets measured at fair value on a recurring basis, by level within the fair value hierarchy and by investment type, as of March 31, 2026 and December 31, 2025, were as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2		Level 3
March 31, 2026:
U.S. Treasuries	$	144,537	$	—	$	144,537	$	—
Mortgage-backed securities		38,976		—		38,976		—
Collateralized mortgage obligations		55,722		—		55,722		—
States and political subdivisions		84,308		—		84,308		—
Total	$	323,543	$	—	$	323,543	$	—
December 31, 2025:
U.S. Treasuries	$	115,530	$	—	$	115,530	$	—
Mortgage-backed securities		39,832		—		39,832		—
Collateralized mortgage obligations		57,829		—		57,829		—
States and political subdivisions		84,925		—		84,925		—
Total	$	298,116	$	—	$	298,116	$	—

Collateral dependent loans, which are measured at fair value on a non-recurring basis, by level within the fair value hierarchy as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2		Level 3
March 31, 2026	$	—	$	—	$	—	$	—
December 31, 2025	$	—	$	—	$	—	$	—

The following table presents a summary of changes in the fair value of other real estate which is measured using Level 3 inputs (in thousands):

	March 31, 2026		December 31, 2025
Balance, beginning of year	$	—	$	9
Loans transferred to ORE		—		266
Sales		—		(266)
Write-downs		—		—
Chargeoffs		—		(9)
Balance, end of year	$	—	$	—

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The carrying value and estimated fair value of financial instruments, by level within the fair value hierarchy, at March 31, 2026 and December 31, 2025 are as follows (in thousands):

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
March 31, 2026:
Financial Assets:
Cash and due from banks	$	57,386	$	57,386	$	—	$	—	$	57,386
Available for sale securities		323,543		—		323,543		—		323,543
Held to maturity securities, net		83,992		—		75,003		—		75,003
Loans, net		265,714		—		—		265,053		265,053
Financial Liabilities:
Deposits:
Non-interest bearing		187,743		187,743		—		—		187,743
Interest bearing		441,001		—		—		403,926		403,926
Time deposits		37,445		—		—		36,987		36,987

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2025:
Financial Assets:
Cash and due from banks	$	19,581	$	19,581	$	—	$	—	$	19,581
Available for sale securities		298,116		—		298,116		—		298,116
Held to maturity securities, net		91,052		—		82,435		—		82,435
Loans, net		260,767		—		—		259,500		259,500
Financial Liabilities:
Deposits:
Non-interest bearing		172,909		172,909		—		—		172,909
Interest bearing		393,934		—		—		358,151		358,151
Time deposits		37,586		—		—		37,128		37,128
Borrowings from Federal Home Loan Bank		800		—		800		—		800

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9. Income Taxes:

Deferred taxes (or deferred charges) as of March 31, 2026 and December 31, 2025, included in other assets, were as follows (in thousands):

	March 31, 2026		December 31, 2025
Deferred tax assets:
Allowance for credit losses	$	825	$	783
Employee benefit plans' liabilities		4,020		4,028
Unrealized loss on available for sale securities, charged from equity		6,507		6,268
Loss on credit impairment of securities		423		423
Earned retiree health benefits plan liability		1,172		1,172
General business and AMT credits		17		17
State income tax net operating loss carryforward		705		771
Other		132		126
Valuation allowance		(423)		(423)
Deferred tax assets		13,378		13,165
Deferred tax liabilities:
Unearned retiree health benefits plan asset		240		240
Bank premises and equipment		1,812		1,883
Deferred tax liabilities		2,052		2,123
Net deferred taxes	$	11,326	$	11,042

Income taxes consist of the following components (in thousands):

	Three Months Ended March 31,
	2026		2025
Current:
Federal	$	447	$	258
State		—		—
Total current		447		258
Deferred:
Federal		(125)		46
State		80		71
Change in valuation allowance		—		—
Total deferred		(45)		117
Totals	$	402	$	375

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Income taxes amounted to less than the amounts computed by applying the U.S. Federal income tax rate of 21.0% for 2026 and 2025 to income before income taxes and State income tax rate of 3.95% for 2026 and 2025.  The reasons for these differences are shown below (in thousands):

	Three Months Ended March 31,
	2026				2025
	Tax		Rate		Tax		Rate
Taxes computed at statutory rate	$	388	21	%	$	354	21	%
Increase (decrease) resulting from:
State income tax expense, net of federal effect		64	3			57	3
Tax -exempt interest income		(38)	(2)			(42)	(3)
Income from BOLI		(27)	(1)			(25)	(1)
Tefra disallowance		15	1			14	1
Federal tax credits		-	-			(2)	(0)
Other		-	-			19	1
Other changes in valuation allowance		-	-			-	-
Total income tax (benefit) expense	$	402	22	%	$	375	22	%

The primary sources of permanent differences are due to tax-exempt interest income earned on certain investment securities, bank owned life insurance, and federal tax credits.

During the three months ended March 31, 2026, the Company recorded current and deferred income tax expense (benefit) of $447,000 and ($45,000), respectively or a net income tax expense of $402,000 and an effective rate of 22%.  During the three months ended March 31, 2025, the Company recorded current and deferred income tax expense of $258,000 and $117,000, respectively or a net income tax expense of $375,000 and an effective rate of 22%.  The Company paid no federal or state income tax payments during the three months ended March 31, 2026 and March 31, 2025.

A valuation allowance is recognized against deferred tax assets when, based on the consideration of all available positive and negative evidence using a more likely than not criteria, it is determined that all or a portion of these tax benefits may not be realized. This assessment requires consideration of all sources of taxable income available to realize the deferred tax asset including taxable income in prior carry-back years, future reversals of existing temporary differences, tax planning strategies and future taxable income exclusive of reversing temporary differences and carryforwards.

As of March 31, 2026, the net deferred tax asset was $11,326,000.  As of December 31, 2025 the net deferred tax asset was $11,042,000.  

The Company has reviewed its income tax positions and specifically considered the recognition and measurement requirements of the benefits recorded in its financial statements for tax positions taken or expected to be taken in its tax returns. The Company currently has no unrecognized tax benefits that, if recognized, would favorably affect the income tax rate in future periods.

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10. Segment Reporting:

The Company is engaged in a single line of business as a financial institution, which provides a full range of banking, financial and trust services to state, county and local government entities and individuals and small and commercial businesses.  The Company has identified its President and Chief Executive Officer as the chief operating decision maker (“CODM”), who uses consolidated net income (see Consolidated Statements of Operation) to determine how resources should be allocated and manage the Company.  The Company’s operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies described in Note A included in Form 10-K for the year ended December 31, 2025.  The Company’s most significant reported source of income and expense are interest income and interest expense (see Consolidated Statements of Operations).  The remaining significant segment income and expenses are described in the Consolidated Statements of Operations.

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Item 2:  Management’s Discussion and Analysis of Financial Condition and Results of Operations

GENERAL

The Company is a one-bank holding company headquartered in Biloxi, Mississippi. The Company has two subsidiaries, PFC Service Corp., an inactive company, and The Peoples Bank, Biloxi, Mississippi (the “Bank”). The Bank provides a full range of banking, financial and trust services to state, county and local government entities and individuals and small and commercial businesses operating in those portions of Mississippi, Louisiana and Alabama which are within a fifty mile radius of the Waveland, Wiggins and Gautier branches, the Bank’s three most outlying locations (the “trade area”).

The following presents Management’s discussion and analysis of the consolidated financial condition and results of operations of Peoples Financial Corporation and Subsidiaries. These comments should be considered in combination with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in this report on Form 10-Q and the Consolidated Financial Statements, Notes to Consolidated Financial Statements and Management’s Discussion and Analysis included in the Company’s Form 10-K for the year ended December 31, 2025.

Forward-Looking Information

Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about a company’s anticipated future financial performance. This act provides a safe harbor for such disclosure which protects the companies from unwarranted litigation if actual results are different from management expectations. This report contains forward-looking statements and reflects industry conditions, company performance and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the Company’s actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements. Such factors and uncertainties include, but are not limited to: changes in interest rates and market prices, changes in local economic and business conditions, increased competition for deposits and loans, changes in the availability of funds resulting from reduced liquidity, changes in statutes, government regulations or regulatory policies or practices in general and specifically acts of terrorism, weather or other events beyond the Company’s control.

New Accounting Pronouncements

The Financial Accounting Standards Board (“FASB”) did not issue any new accounting standard or updates during the three months ended March 31, 2026. The Company does not expect that the updates discussed in the Notes will have a material impact on its financial position, results of operations or cash flows.  Further disclosure is included in Note 1.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and assumptions on an on-going basis using historical experience and other factors, including the current economic environment. We adjust such estimates and assumptions when facts and circumstances dictate. Certain critical accounting policies affect the more significant estimates and assumptions used in the preparation of the consolidated financial statements.

Cash and Due from Banks

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks; which includes non-interest and interest bearing accounts, and federal funds sold, all of which mature within ninety days.

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Investments

Investments which are classified as available for sale are stated at fair value. The determination of the fair value of securities may require Management to develop estimates and assumptions regarding the amount and timing of cash flows.

Allowance for credit losses

In general, the Company uses a broad range of data to estimate current expected credit losses (“CECL”), including information about past events, current conditions, and reasonable and supportable forecasts relevant to assessing the collectability of the cash flows of financial assets.

CECL requires the Bank to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risk characteristics exist. The Bank has determined that Call Report categories will be utilized, and Management will maintain the option to further segment the portfolio if we deem it beneficial to the analysis.

Estimating an appropriate ACL involves a high degree of Management judgment. As such, it is Management’s responsibility to record the Bank’s best estimate of expected credit losses and provide it to the Board of Directors.

The analysis is prepared and reported to the Board of Directors on a quarterly basis. The option and decision to prepare the analysis more frequently will remain with Management.

The Company’s most critical accounting policy relates to its allowance for credit losses, which reflects the estimated losses resulting from the inability of its borrowers to make loan payments. The allowance for credit losses is established and maintained at an amount sufficient to absorb losses on loans and leases held for investment. Credit losses arise not only from credit risk, but also from other risks inherent in the lending process including, but not limited to, collateral risk, operation risk, concentration risk and economic risk. As such, all related risks of lending are considered when assessing the adequacy of the allowance for credit losses.

Management believes that the allowance for credit losses on loans is adequate and appropriate for all periods presented in these financial statements. All credit relationships with an outstanding balance of $50,000 or greater that are included in Management’s loan watch list are individually reviewed for credit losses.

Income Taxes

The Company uses the asset and liability method of accounting for deferred income taxes and provides deferred income taxes for all significant income tax temporary differences. As part of the process of preparing the consolidated financial statements, the Company is required to estimate income taxes in each of the jurisdictions in which it operates. This process involves estimating the actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as the provision for credit losses, for tax and financial reporting purposes. These differences result in deferred tax assets and liabilities that are included in the consolidated statement of condition. The Company must also assess the likelihood that the deferred tax assets will be recovered from future taxable income, and, to the extent Management believes that recovery is not likely, the Company must establish a valuation allowance. Significant Management judgment is required in determining the provision for income taxes, the deferred tax assets and liabilities and any valuation allowance recorded against the net deferred tax assets. To the extent the Company establishes a valuation allowance or adjusts this allowance in a period, the Company must include an expense or a benefit within the tax provisions in the consolidated statement of operations.

27

GAAP Reconciliation and Explanation

This Form 10-Q contains non-GAAP financial measures determined by methods other than in accordance with GAAP. Such non-GAAP financial measures include taxable equivalent interest income and taxable equivalent net interest income. Management uses these non-GAAP financial measures because it believes they are useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with a meaningful measure for assessing our financial results, as well as comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. A reconciliation of these operating performance measures to GAAP performance measures for the three  months ended March 31, 2026 and 2025 is included in the table below (in thousands).

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES

	Three Months Ended March 31,
	2026		2025
Interest income
Interest income - (GAAP)	$	7,611	$	7,559
Taxable equivalent adjustment		60		68
Tax equivalent interest income:	$	7,671	$	7,627
Net interest income
Net interest income - (GAAP)	$	5,767	$	5,668
Taxable equivalent adjustment		60		68
Net tax equivalent interest income:	$	5,827	$	5,736

OVERVIEW

The Company is a community bank serving the financial and trust needs of its customers in our trade area, which is defined as those portions of Mississippi, Louisiana and Alabama which are within a fifty mile radius of the Waveland, Wiggins and Gautier branches, the bank subsidiary’s three most outlying locations. Maintaining a strong core deposit base and providing commercial and real estate lending in our trade area are the traditional focuses of the Company. Growth has largely been achieved through de novo branching activity, and it is expected that these strategies will continue to be emphasized in the future.

The Company reported net income of $1,446,000 for the first quarter of 2026 compared with net income of $1,310,000 for the first quarter of 2025.  Results in 2026 included an increase in net income attributable to higher interest income and fees on loans and a lower cost of funds compared to 2025.

Managing the net interest margin is a key component of the Company’s earnings strategy.  Concerns about inflation and its potential impact on the economy and individual households are among the issues being considered by the Federal Reserve.  Raising the federal funds rate had been a strategy pursued in 2023 to address this issue.  The Federal Reserve raised interest rates a total of 100 basis points during 2023 in an effort to promote maximum employment, keep prices stable and have moderate long-term interest rates.  Due to a weakening labor market the Federal Reserve has changed its course of action and reduced interest rates by 100 basis points during 2024 and 75 basis points in 2025 and is projected to make additional rate cuts in 2026.  During the first quarter of 2026, the Federal Reserve did not reduce the federal funds rate.  The Federal Open Market Committee opted to hold rates steady amid ongoing inflation concerns and economic uncertainty.

Monitoring asset quality, estimating potential losses in our loan portfolio, unfunded lending commitments and held to maturity debt securities and addressing non-performing loans continue to be a major focus of the Company. A net provision reduction for credit losses of ($8,000) was recorded in the quarter ended March 31, 2026 and ($5,000) for the quarter ended March 31, 2025.  The Company has worked diligently to address and reduce its non-performing assets. The Company’s nonaccrual loans totaled $517,000 and $533,000 at March 31, 2026 and December 31, 2025, respectively.

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Most of these loans are collateral-dependent, and the Company has rigorously evaluated the value of its collateral to determine potential losses.

Non-interest income increased $78,000 for the first quarter of 2026 as compared with 2025 results. Results for the first quarter of 2026 included the sale of miscellaneous assets of $57,000, an increase in trust income and fees of $14,000 and an increase in cash surrender value of life insurance of $9,000.

Non-interest expenses increased $17,000 for the first quarter ended March 31, 2026, as compared with 2025 results. This net increase for the first quarter of 2026 was primarily the result of an increase in ATM and debit card expense of $80,000 and miscellaneous expense of $69,000 mostly offset by lower maintenance expense of $64,000 and lower salary and benefit expense of $51,000.  

Total assets at March 31, 2026, increased $61,139,000 as compared with December 31, 2025. Total deposits increased $61,760,000 as governmental entities’ balances increased due to tax collections in several public fund accounts. The increase in deposits caused an increase in cash and due from banks of $37,805,000 and increased new purchases of available for sale securities.

RESULTS OF OPERATIONS

Net Interest Income

Net interest income, the amount by which interest income on loans, investments and other interest- earning assets exceeds interest expense on deposits and other borrowed funds, is the single largest component of the Company’s income. Management’s objective is to provide the largest possible amount of income while balancing interest rate, credit, liquidity and capital risk. Changes in the volume and mix of interest earning assets and interest-bearing liabilities combined with changes in market rates of interest directly affect net interest income.

Quarter Ended March 31, 2026 as Compared with Quarter Ended March 31, 2025

The Company’s average interest-earning assets decreased approximately $21,218,000, or 2.76%, from approximately $768,764,000 for the first quarter of 2025 to approximately $747,546,000 for the first quarter of 2026. The Company’s average balance sheet decreased primarily as average investments decreased approximately $56,601,000 which was somewhat offset by an increase in average loans of approximately $34,495,000 as compared with the first quarter of 2025. Average loans increased as new loans exceeded principal payments, maturities, and charge-offs.  

The average yield on interest-earning assets increased from 3.97% for the first quarter of 2025 to 4.10% for the first quarter of 2026. This increase is due to an increase in volume and yields on average loans, and overnight fed funds in 2026.

Average interest-bearing liabilities decreased approximately $26,110,000 or 4.66%, from approximately $560,582,000 for the first quarter of 2025 to approximately $534,472,000 for the first quarter of 2026. Average savings and interest bearing DDA deposits decreased approximately $14,914,000 and time deposits decreased approximately $11,868,000. This decrease was mostly caused by the allocation of public fund tax deposits that increase as taxes are collected and slowly allocate out of the deposit accounts through the end of each year along with the loss of several public fund accounts.    Although average deposits decreased the Company evaluates on an ongoing and continuous basis various moderate to severe economic scenarios and does not anticipate a liquidity issue.

The average rate paid on interest‑bearing liabilities for the first quarter of 2026 was 1.38%, compared with 1.35% for the first quarter of 2025. Although the Federal Reserve implemented several rate cuts during 2025, the cumulative effect of significant rate increases during 2022 and 2023 continued to impact the Bank’s cost of funds in 2025 and into 2026 as the Bank priced deposits competitively within its local market. As market interest rates trend downward, management expects funding cost pressures to moderate during 2026.

The Company’s net interest margin on a nontax-equivalent basis, which is net interest income as a percentage of average earning assets, was 3.09% for the first quarter of 2026 as compared with 2.95% for the first quarter of 2025.

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The Company’s net interest margin on a tax-equivalent basis, which is net interest income as a percentage of average earning assets, was 3.12% for the first quarter of 2026 as compared with 2.98% for the first quarter of 2025.

The tables on the following pages analyze the changes in tax-equivalent net interest income for the three months ended March 31, 2026 and March 31, 2025.

Analysis of Average Balances, Interest Earned/Paid and Yield

(In Thousands)

	Quarter Ended March 31, 2026						Quarter Ended March 31, 2025
	Average Balance		Interest Earned/Paid		Rate		Average Balance		Interest Earned/Paid		Rate
Loans (2)(3)	$	266,044	$	4,209	6.33	%	$	231,549	$	3,396	5.87	%
Balances due from financial institutions		79,770		754	3.78	%		79,444		738	3.72	%
HTM:
Taxable		60,321		386	2.56	%		86,133		600	2.79	%
Non taxable (1)		28,268		217	3.07	%		31,433		242	3.08	%
AFS:
Taxable		308,419		2,069	2.68	%		335,938		2,617	3.12	%
Non taxable (1)		3,554		24	2.65	%		3,659		27	2.91	%
Other		1,170		12	4.10	%		608		7	4.61	%
Total	$	747,546	$	7,671	4.10	%	$	768,764	$	7,627	3.97	%
Savings & interest-bearing DDA	$	496,215	$	1,623	1.31	%	$	511,129	$	1,499	1.17	%
Time deposits		37,585		215	2.29	%		49,453		392	3.17	%
Other Borrowings and Borrowings under Term Funding Program		—		—	—	%		—		—	—	%
Borrowings from FHLB		672		6	3.80	%		—		—	—	%
Total	$	534,472	$	1,844	1.38	%	$	560,582	$	1,891	1.35	%
Net tax-equivalent spread					2.72	%					2.62	%
Net tax-equivalent margin on earning assets					3.12	%					2.98	%

(1) All interest earned is reported on a taxable equivalent basis using a tax rate of 24.95% in 2026 and 2025. See disclosure of Non-GAAP financial measures on page 28.

(2) Loan fees of $203 and $100 for 2026 and 2025, respectively, are included in these figures.

(3) Includes nonaccrual loans.

30

Analysis of Changes in Interest Income and Interest Expense

(In Thousands)

	For the Quarter Ended
	March 31, 2026 compared with March 31, 2025
	Volume		Rate		Rate/Volume		Total
Interest earned on:
Loans	$	506	$	267	$	40	$	813
Balances due from financial institutions		3		13		—		16
Held to maturity securities:
Taxable		(180)		(49)		15		(214)
Non taxable		(24)		(1)		—		(25)
Available for sale securities:
Taxable		(214)		(364)		30		(548)
Non taxable		(1)		(2)		—		(3)
Other		6		(1)		—		5
Total	$	96	$	(137)	$	85	$	44
Interest paid on:
Savings & interest-bearing DDA	$	(44)	$	173	$	(5)	$	124
Time deposits		(94)		(109)		26		(177)
Borrowings under Term Fund		—		—		—		—
Borrowings from FHLB		—		—		6		6
Total	$	(138)	$	64	$	27	$	(47)

Provision for Credit Losses

In the normal course of business, the Company assumes risk in extending credit to its customers. This credit risk is managed through compliance with the loan policy, which is approved by the Board of Directors. The policy establishes guidelines relating to underwriting standards, including but not limited to financial analysis, collateral valuation, lending limits, pricing considerations and loan grading. The Company’s Loan Review and Special Assets Departments play key roles in monitoring the loan portfolio and managing problem loans. New loans and, on a periodic basis, existing loans are reviewed to evaluate compliance with the loan policy. Loan delinquencies and deposit overdrafts are closely monitored in order to identify developing problems as early as possible. Lenders experienced in workout scenarios consult with loan officers and customers to address non-performing loans. A watch list of credits which pose a potential loss to the Company is prepared based on the loan grading system. This list forms the foundation of the Company’s allowance for credit loss computation.

Management relies on its guidelines and existing methodology to monitor the performance of its loan portfolio and identify and estimate potential losses based on the best available information. The potential effect of declines in real estate values and actual losses incurred by the Company were key factors in our analysis. Much of the Company’s loan portfolio is secured by real estate requiring careful consideration of real estate changes in value to properly monitor risk.

The provision for credit losses is the amount necessary to maintain the ACL and the reserve for unfunded commitments at a level considered appropriate by management.  Factors impacting the provision include loan portfolio growth, changes in the quality and composition of the loan portfolio, the level of nonperforming loans, delinquency and charge-off trends, the level of unfunded commitments and current economic conditions.

The Bank’s on-going, systematic evaluation resulted in the Bank recording a net provision of (reduction of) credit losses of ($8,000) and ($5,000) for the first quarter of 2026 and 2025, respectively.  

The Bank’s analysis includes evaluating the current values of collateral securing all nonaccrual loans. Nonaccrual loans totaled $517,000 and $533,000 with $89,000 and $100,000 in specific reserves on these loans as of March 31, 2026 and

31

December 31, 2025, respectively. The specific reserves allocated to nonaccrual loans are relatively low as collateral values appear sufficient to cover credit losses, or the loan balances have been charged down to their realizable value.

The allowance for credit losses as a percentage of loans was 1.15% and 1.11% at March 31, 2026 and December 31, 2025. Although the Company experienced loan growth in the first quarter of 2026 there was no additional credit loss provision required due to a recovery of a previously charged off loan in the amount of $150,000.  The Company believes that its allowance for credit losses is appropriate as of March 31, 2026.

The allowance for credit losses is an estimate, and as such, events may occur in the future which may affect its accuracy. The Company anticipates that it is possible that additional information will be gathered in future quarters on loan performance, which may require an adjustment to the allowance for credit losses. Management will continue to closely monitor its portfolio and take such action as it deems appropriate to accurately report its financial condition and results of operations.

Non-interest income

Three Months Ended March 31, 2026 as Compared with Three Months Ended March 31, 2025

Non-interest income increased $78,000 for the first quarter of 2026 as compared with 2025 results. Results for the first quarter of 2026 included the sale of miscellaneous assets of $57,000, an increase in trust income and fees of $14,000 and an increase in cash surrender value of life insurance of $9,000.  The income increases described are not necessarily recurring and can fluctuate in the normal course of business.

Non-interest expense

Three Months Ended March 31, 2026 as Compared with Three Months Ended March 31, 2025

Non-interest expenses increased $17,000 for the first quarter ended March 31, 2026, as compared with 2025 results. This net increase for the first quarter of 2026 was primarily the result of an increase in ATM and debit card expense of $80,000 and miscellaneous expense of $69,000 mostly offset by lower maintenance expense of $64,000 and lower salary and benefit expense of $51,000.  The expense increases described are not necessarily recurring and can fluctuate in the normal course of business.

Income Taxes

Quarter Ended March 31, 2026 as Compared with Quarter Ended March 31, 2025

The Company has recorded deferred and current income tax expenses in the first quarters of 2026 and 2025, respectively. Income tax expense increased $27,000 for the first quarter of 2026 as compared with tax expense of $375,000 for the first quarter of 2025. This increase was due to higher pretax income recorded for the first quarter of 2026 which was $163,000 less than the same period in 2025.  The effective tax rate for quarter ended March 31, 2026 and 2025 was 22%, respectively.

Financial Condition

Cash and due from banks increased $37,805,000 at March 31, 2026, compared with December 31, 2025. This increase was due to a significant increase in total deposits.

Available for sale securities increased $25,427,000 and held to maturity securities decreased $7,060,000, respectively at March 31, 2026 compared with December 31, 2025 as the Company decreased its held to maturity securities and increased its available for sale investment purchases. As securities mature the proceeds are used to pay down borrowings first and then reinvest in available for sale securities and loans.

Gross loans increased $5,108,000 at March 31, 2026 compared with December 31, 2025, as new loans outpaced principal payments, maturities, and charge-offs.

32

Total deposits increased $61,760,000 at March 31, 2026, compared with December 31, 2025.  Typically, significant increases or decreases in total deposits and/or significant fluctuations among the different types of deposits from quarter to quarter are anticipated by Management as customers in the casino industry and county and municipal entities reallocate their resources periodically. Deposits from county and municipal entities increase significantly during the first quarter of each year based on property tax collections and are slowly allocated out of the tax collection accounts over the course of the year.  

SHAREHOLDERS’ EQUITY AND CAPITAL ADEQUACY

Strength, security and stability have been the hallmark of the Company since its founding in 1985 and of its bank subsidiary since its founding in 1896. A strong capital foundation is fundamental to the continuing prosperity of the Company and the security of its customers and shareholders.

As of December 31, 2025, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.

During the third quarter of 2023, the community bank leverage ratio (CBLR) framework was elected. The CBLR framework is an optional framework that is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. The framework provides a simple measure of capital adequacy for qualifying community banking organizations, consistent with section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Act.

Currently, qualifying community banking organizations that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9.00% are considered to have satisfied the risk-based and leverage capital requirements in the generally applicable capital rule. In addition, these institutions are considered to have met the well-capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act.  Effective July 1, 2026, the required leverage ratio under the CBLR will be reduced from 9.00% to 8.00% pursuant to a final rule jointly issued by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System on April 26, 2026.

The main components and requirements of the CBLR framework are as follows:

As of March 31, 2026 and December 31, 2025, the Bank’s community bank leverage ratio was 14.15% and 15.76%, respectively, both of which exceed the current CBLR minimum of 9.00% and the future CBLR minimum of 8.00% effective July 1, 2026.

Management continues to emphasize the importance of maintaining the appropriate capital levels of the Company and has established the goal of being “well-capitalized” by the banking regulatory authorities.

LIQUIDITY

Liquidity represents the Company’s ability to adequately provide funds to satisfy demands from depositors, borrowers and other commitments by either converting assets to cash or accessing new or existing sources of funds. Management monitors these funds requirements in such a manner as to satisfy these demands and provide the maximum earnings on its earning assets. The Company manages and monitors its liquidity position through a number of methods, including through the computation of liquidity risk targets and the preparation of various analyses of its funding sources and utilization of those sources on a monthly basis. The Company also uses proforma liquidity projections which are updated on a monthly basis in the management of its liquidity needs and also conducts periodic contingency testing on its liquidity plan.

Deposits, payments of principal and interest on loans, proceeds from maturities of investment securities and earnings on investment securities are the principal sources of funds for the Company. Borrowings from the FHLB, federal funds sold and federal funds purchased are utilized by the Company to manage its daily liquidity position. The Company has also been approved to participate in the Federal Reserve Bank’s Discount Window Primary Credit Program.  As of March 31, 2026, the Company was able to borrow up to $7,263,636 from the Federal Reserve Bank Discount Window Primary Credit

33

Program. The borrowing limit is based on the amount of collateral pledged, with certain loans from the Bank’s portfolio serving as collateral. The Company has $127,421,217 available under a line of credit with the Federal Home Loan Bank of Dallas with $127,421,217 available. The Company has additional contingency funding capacity with various other financial institutions in the amount of $28,000,000.

The Company maintains a well-capitalized balance sheet which includes strong capital and liquidity. The Bank provides a full range of banking, financial and trust services in our local markets. The majority of the Bank’s deposits are fully FDIC insured and the Company evaluates on an ongoing and continuous basis its financial health by preparing for various moderate to severe economic scenarios.

Determining liquidity adequacy requires an ongoing analysis of the Company’s current and expected liquidity position, including historical funding obligations and anticipated funding needs, as well as an understanding of retention prospects for all bank deposits. In particular, consideration is given to public funds and other large depositors for potential runoffs due to expected uses or other withdrawals from bank accounts.  Management considers fluctuations in public fund and municipal deposit balances, including seasonal runoff following first quarter tax collections, to represent a known trend that could affect the Company’s liquidity profile.  Management continues to actively monitor deposit concentrations and available contingency funding sources to mitigate potential liquidity risks.

The Company also uses other sources of funds, including borrowings from the FHLB. The Company generally anticipates relying on deposits, purchases of federal funds and borrowings from the Federal Reserve Bank of Atlanta and FHLB for its liquidity needs in 2026.

The Board of Directors requires management to implement and administer appropriate internal controls commensurate with the Company’s risk profile. Management carefully monitors the Company’s liquidity risk, particularly with respect to volatile and large deposits. The Company has not encountered and does not anticipate problems with meeting its liquidity needs.

Item 4: Controls and Procedures

As of March 31, 2026, an evaluation was performed under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer of the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective to ensure that the information required to be disclosed by the Company in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the three month period ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1: Legal Proceedings

The Bank is involved in various legal matters and claims which are being defended and handled in the ordinary course of business. None of these matters are expected, in the opinion of Management, to have a material adverse effect upon the financial position or results of operations of the Company.

Additionally, on June 30, 2023, Stilwell Activist Investments, L.P., issued a letter to the Company and each of the directors of the Company demanding that they immediately commence litigation on behalf of the Company for an alleged breach by the Company’s Board of Directors of its fiduciary duties in allegedly failing to properly oversee and supervise Chevis and Tanner Swetman’s management of the Company. At its July 2023 meeting, the Board of Directors of the Company established a Special Litigation Committee made up of three independent directors to investigate the allegations made in

34

the letter. Rather than wait for the Special Litigation Committee to conclude its inquiry, Stilwell Activist Investments, L.P., filed on September 29, 2023, a Complaint against the Company and Directors Chevis Swetman, Padrick D. Dennis, Jeffrey H. O’Keefe, Paige Reed Riley, Ronald Barnes, and George Sliman, III, making the same allegations that appear in the demand letter. The Court stayed the lawsuit pending the Special Litigation Committee’s inquiry. The Special Litigation Committee concluded that pursuing the claims is not in the Company’s best interest, and on March 22, 2024, the Company filed a motion to dismiss.  The motion to dismiss was heard by the Court on October 17, 2024, and denied, allowing limited discovery as to the reasonableness of the Special Litigation Committee’s inquiry.

The plaintiff, Stilwell Activist Investments, L.P., is a shareholder of record of the Company and is controlled by Joseph Stilwell, an individual who beneficially owns 15.99% of the issued and outstanding common stock of the Company according to a revised definitive proxy statement filed by Mr. Stilwell and his related entities with the SEC on March 9, 2026, in connection with a proxy contest conducted by Mr. Stilwell at the Company’s 2026 annual meeting. Including the nomination made by Mr. Stilwell for the 2026 Annual Meeting held on April 22, 2026, Mr. Stilwell and his related entities have nominated an individual for election to the Board of Directors of the Company at its last six annual meetings, but each individual nominated was not elected to the Board of Directors of the Company.

Item 5: Other Information

During the three months ended March 31, 2026, none of the Company’s directors or executive officers informed the Company of the adoption, modification, or termination of any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement.

35

Item 6 - Exhibits

Exhibit 31.1:	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002
Exhibit 31.2:	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002
Exhibit 32.1:	Certification of Chief Executive Officer Pursuant to 18 U.S.C. ss. 1350
Exhibit 32.2:	Certification of Chief Financial Officer Pursuant to 18 U.S.C. ss. 1350
Exhibit 101	The following materials from the Company’s quarterly report on Form 10-Q for the three months ended March 31, 2026, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Consolidated Statements of Condition at March 31, 2026 and December 31, 2025, (ii) Consolidated Statements of Operations for three months ended March 31, 2026 and March 31, 2025, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2026 and March 31, 2025, (iv) Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2026 and March 31, 2025, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and March 31, 2025 and (vi) Notes to the Unaudited Consolidated Financial Statements for the three months ended March 31, 2026 and March 31, 2025.
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

36

SIGNATURES

Pursuant to the requirement of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PEOPLES FINANCIAL CORPORATION
(Registrant)
Date:	May 12, 2026
By:	/s/ Chevis C. Swetman
	Chevis C. Swetman
	Chairman, President and Chief Executive Officer
	(principal executive officer)
Date:	May 12, 2026
By:	/s/ Leslie B. Fulton
	Leslie B. Fulton
	Chief Financial Officer and Controller
	(principal financial and accounting officer)

37

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PEOPLES FINANCIAL CORPORATION

PURSUANT TO SECTION 302 OF THE

SARBANES - OXLEY ACT OF 2002

I, Chevis C. Swetman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Peoples Financial Corporation.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in the report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weakness in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: May 12, 2026

/s/ Chevis C. Swetman

Chevis C. Swetman,

President and Chief Executive Officer

(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PEOPLES FINANCIAL CORPORATION

PURSUANT TO SECTION 302 OF THE

SARBANES - OXLEY ACT OF 2002

I, Leslie B. Fulton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Peoples Financial Corporation.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in the report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weakness in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: May 12, 2026

/s/ Leslie B. Fulton

Leslie B. Fulton,

Chief Financial Officer and Controller

(principal financial and accounting officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PEOPLES FINANCIAL CORPORATION

PURSUANT TO 18 U.S.C. ss. 1350

I, Chevis C. Swetman, Chairman, President and Chief Executive Officer of Peoples Financial Corporation (the “Company”), hereby certify that the accompanying report on Form 10-Q for the period ending March 31, 2026 and filed with the Securities and Exchange Commission on the date hereof pursuant to Section 13(a) of the Securities Exchange Act of 1934 (the “Report”) by the Company fully complies with the requirements of that section.

I further certify that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Chevis C. Swetman
	Chevis C. Swetman,
	Chairman, President and Chief Executive Officer
	(principal executive officer)
Date:	May 12, 2026

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PEOPLES FINANCIAL CORPORATION

PURSUANT TO 18 U.S.C. ss. 1350

I, Leslie B. Fulton, Chief Financial Officer and Controller of Peoples Financial Corporation (the “Company”), hereby certify that the accompanying report on Form 10-Q for the period ending March 31, 2026 and filed with the Securities and Exchange Commission on the date hereof pursuant to Section 13(a) of the Securities Exchange Act of 1934 (the “Report”) by the Company fully complies with the requirements of that section.

I further certify that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Leslie B. Fulton
	Leslie B. Fulton
	Chief Financial Officer and Controller
	(principal financial and accounting officer)
Date:	May 12, 2026

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2026	Apr. 30, 2026
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2026
Document Transition Report	false
Securities Act File Number	001-12103
Entity Registrant Name	PEOPLES FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	MS
Entity Tax Identification Number	64-0709834
Entity Address, Address Line One	Lameuse and Howard Avenues
Entity Address, City or Town	Biloxi
Entity Address, State or Province	MS
Entity Address, Postal Zip Code	39533
City Area Code	228
Local Phone Number	435-5511
Title of 12(b) Security	None
Trading Symbol	PFBX
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		4,617,466
Entity Central Index Key	0000770460
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Statements of Condition - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Assets
Cash and due from banks	$ 57,386	$ 19,581
Available for sale securities, amortized cost of $349,623 at March 31, 2026; $323,240 at December 31, 2025	323,543	298,116
Held to maturity securities, fair value of $75,003 at March 31, 2026; $82,435 at December 31, 2025	84,023	91,083
Less: Allowance for credit losses on held to maturity securities	31	31
Held to maturity securities, net	83,992	91,052
Other investments	350	350
Federal Home Loan Bank Stock, at cost	1,182	1,170
Loans	268,814	263,706
Less: Allowance for credit losses on loans and leases	3,100	2,939
Loans, net	265,714	260,767
Bank premises and equipment, net of accumulated depreciation	17,215	17,387
Accrued interest receivable	3,022	3,060
Cash surrender value of life insurance	22,692	22,546
Intangible asset	398	414
Other assets	12,766	12,678
Total assets	788,260	727,121
Liabilities:
Demand, non-interest bearing	187,743	172,909
Savings and demand, interest bearing	441,001	393,934
Time, $250,000 or more	12,153	13,591
Other time deposits	25,292	23,995
Total deposits	666,189	604,429
Advances from Federal Home Loan Bank		800
Employee and director benefit plans liabilities	19,887	19,881
Other liabilities	789	1,344
Total liabilities	686,865	626,454
Shareholders' Equity:
Common stock, $1 par value, 15,000,000 shares authorized, 4,617,466 shares issued and outstanding at March 31, 2026 and December 31, 2025	4,617	4,617
Surplus	65,780	65,780
Undivided profits	60,186	58,740
Accumulated other comprehensive loss	(29,188)	(28,470)
Total shareholders' equity	101,395	100,667
Total liabilities and shareholders' equity	$ 788,260	$ 727,121

XML

Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Consolidated Statements of Condition
Available for sale securities, amortized cost	$ 349,623	$ 323,240
Held to maturity securities, net	$ 75,003	$ 82,435
Common stock, par or stated value per share	$ 1	$ 1
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	4,617,466	4,617,466
Common stock, shares outstanding	4,617,466	4,617,466

XML

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Interest income:
Interest and fees on loans	$ 4,209,000	$ 3,396,000
Interest and dividends on securities:
U. S. Treasuries	934,000	1,351,000
Mortgage-backed securities	338,000	545,000
States and political subdivisions	917,000	981,000
Collateralized mortgage obligations	447,000	541,000
Other investments	12,000	7,000
Interest on balances due from depository institutions	754,000	738,000
Total interest income	7,611,000	7,559,000
Interest expense:
Deposits	1,838,000	1,891,000
Borrowings	6,000
Total interest expense	1,844,000	1,891,000
Net interest income	5,767,000	5,668,000
Reduction of credit losses	(8,000)	(5,000)
Net interest income after provision for credit losses	5,775,000	5,673,000
Non-interest income:
Increase in cash surrender value of life insurance	129,000	120,000
Other income	248,000	187,000
Total non-interest income	1,781,000	1,703,000
Non-interest expense:
Salaries and employee benefits	2,665,000	2,716,000
Net occupancy	554,000	563,000
Equipment rentals, depreciation and maintenance	719,000	783,000
FDIC and state banking assessments	98,000	96,000
Data processing	302,000	314,000
ATM expense	371,000	291,000
Legal expense		64,000
Legal expense (reclass)	66,000
Other expense	933,000	864,000
Total non-interest expense	5,708,000	5,691,000
Income before income taxes	1,848,000	1,685,000
Income tax expense	402,000	375,000
Net income	$ 1,446,000	$ 1,310,000
Basic earnings per share (in dollars per share)	$ 0.31	$ 0.28
Diluted earnings per share (in dollars per share)	0.31	0.28
Dividends declared per share (in dollars per share)	$ 0	$ 0
Trust department income and fees
Non-interest income:
Revenue	$ 640,000	$ 626,000
Service charges on deposit accounts
Non-interest income:
Revenue	$ 764,000	$ 770,000

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Consolidated Statements of Comprehensive Income
Net income	$ 1,446	$ 1,310
Other comprehensive income (loss):
Net unrealized gain (loss) on available for sale securities, net of tax	(718)	3,144
Total other comprehensive income (loss)	(718)	3,144
Total comprehensive income (loss)	$ 728	$ 4,454

XML

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Surplus	Undivided Profits	Accumulated Other Comprehensive Income (loss)	Total
Balance (in shares) at Dec. 31, 2024	4,617,466
Balance at Dec. 31, 2024	$ 4,617	$ 65,780	$ 56,491	$ (36,887)	$ 90,001
Net income			1,310		1,310
Other comprehensive income (loss)				3,144	3,144
Balance (in shares) at Mar. 31, 2025	4,617,466
Balance at Mar. 31, 2025	$ 4,617	65,780	57,801	(33,743)	94,455
Balance (in shares) at Dec. 31, 2025	4,617,466
Balance at Dec. 31, 2025	$ 4,617	65,780	58,740	(28,470)	100,667
Net income			1,446		1,446
Other comprehensive income (loss)				(718)	(718)
Balance (in shares) at Mar. 31, 2026	4,617,466
Balance at Mar. 31, 2026	$ 4,617	$ 65,780	$ 60,186	$ (29,188)	$ 101,395

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Cash flows from operating activities:
Net income	$ 1,446	$ 1,310
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	402	420
Provision for (reduction of) credit losses	(8)	(5)
Amortization of intangible asset	16	16
(Accretion) amortization of available for sale securities	(175)	(267)
Amortization (accretion) of held to maturity securities	75	92
Increase in cash surrender value of life insurance	(129)	(120)
Change in accrued interest receivable	38	208
Change in deferred tax	(45)	117
Change in other assets	188	366
Change in employee and director benefit plan liabilities and other liabilities	(541)	(946)
Net cash provided by operating activities	1,267	1,191
Cash flows from investing activities:
Proceeds from maturities of available for sale securities	32,704	16,537
Purchases of available for sale securities	(58,911)	(73,655)
Proceeds from maturities of held to maturity securities	6,985	10,476
Redemptions of Federal Home Loan Bank stock	(12)	(6)
Loans, net change	(4,947)	1,918
Acquisition of bank premises and equipment	(230)	(19)
Investment in cash surrender value of life insurance	(11)	(13)
Net cash (used) by investing activities	(24,422)	(44,762)
Cash flows from financing activities:
Demand and savings deposits, net change	61,901	35,505
Time deposits, net change	(141)	(4,244)
Borrowings from Federal Home Loan Bank	40,350
Repayments to Federal Home Loan Bank	(41,150)
Net cash provided by financing activities	60,960	31,261
Net increase (decrease) in cash and cash equivalents	37,805	(12,310)
Cash and cash equivalents, beginning of period	19,581	107,744
Cash and cash equivalents, end of period	$ 57,386	$ 95,434

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Basis of Presentation

3 Months Ended

Mar. 31, 2026

Basis of Presentation

Basis of Presentation

1.Basis of Presentation:

Peoples Financial Corporation (the “Company”) is a one-bank holding company headquartered in Biloxi, Mississippi. The Company has two subsidiaries, PFC Service Corp., an inactive company, and The Peoples Bank, Biloxi, Mississippi (the “Bank”). The Bank provides a full range of banking, financial and trust services to state, county and local government entities and individuals and small and commercial businesses operating in those portions of Mississippi, Louisiana and Alabama which are within a fifty-mile radius of the Waveland, Wiggins and Gautier branches, the Bank’s three most outlying locations (the “trade area”).

The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the consolidated financial position of the Company and its subsidiaries as of March 31, 2026 and December 31, 2025 the results of their operations and their cash flows for the periods presented. The interim financial information should be read in conjunction with the annual consolidated financial statements and the notes thereto included in the Company’s 2025 Annual Report and Form 10-K.

CRITICAL ACCOUNTING POLICIES

The results of operations for the quarter and three months ended March 31, 2026, are not necessarily indicative of the results to be expected for the full year.

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for credit losses (ACL) and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income.  

Summary of Significant Accounting Policies - The accounting and reporting policies of the Company conform to GAAP and general practices within the banking industry.

There were no material changes or developments during the reporting period with respect to methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.

Allowance for credit losses

In general, the Company uses a broad range of data to estimate current expected credit losses (“CECL”), including information about past events, current conditions, and reasonable and supportable forecasts relevant to assessing the collectability of the cash flows of financial assets.

CECL requires the Bank to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risk characteristics exist. The Bank has determined that Call Report categories will be utilized, and Management will maintain the option to further segment the portfolio if we deem it beneficial to the analysis.

The Company’s loan portfolio segments as of March 31, 2026 and December 31, 2025 were as follows:

Real Estate Loans

Residential-Residential mortgage loans are susceptible to weakening general economic conditions, increases in unemployment rates, and declining real estate values.

Construction-Risk common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements, and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates.

Nonresidential-Risks to this loan category include industry concentration and the inability to monitor the condition of collateral. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt, declines in real estate values, and lack of suitable alternative use for properties. These loans are also susceptible to declines in occupancy rates, business failure, and general economic conditions.

Commercial and Industrial-Risk to this loan category include industry concentration and the practical limitations associated with monitoring the condition of the collateral which often consists of inventory, accounts receivable, and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt.

Other-Risk common to these loans include regulatory risks, unemployment, changes in local economic conditions, and the inability to monitor collateral consisting of personal property.

RECENT ACCOUNTING PRONOUNCEMENTS

There were no new accounting pronouncements issued or adopted during the three months ended March 31, 2026 that are expected to have a material impact on the Company’s consolidated financial statements.

Accounting Standards Update –In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2025-11 (“ASU 2025-11”), Interim Reporting (Topic 270): Narrow-Scope Improvements.  ASU 2025-11 clarifies the applicability, form and content of interim financial statements and disclosures and improves the navigability of the interim reporting guidance in ASC 270.  The amendments introduce a disclosure principle requiring entities to disclose events or changes occurring since the end of the most recent annual reporting period that have a material effect on the entity, and they consolidate interim disclosure requirements from other Topics into ASC 270.  ASU 2025-11 is effective for public business entities for interim reporting periods within annual periods beginning after December 15, 2027, and for all other entities one year later.  Early adoption is permitted. Management has evaluated the impact of the adoption of this standard and determined there would be no material impact to the Company’s consolidated financial position or results of operations.

Accounting Standards Update –In November 2025, the Financial Accounting Standards Board issued Accounting Standards Update 2025-08 (“ASU 2025-08”), Purchased Loans (Topic 326).  ASU 2025-08 updates the credit loss accounting model under Topic 326 by expanding the gross up approach—previously limited to Purchased Credit Deteriorated (PCD) assets—to a broader class of acquired loans called purchased seasoned loans (PSLs). Under the new guidance, entities recognize an allowance for expected credit losses at acquisition with a corresponding increase to the loan’s amortized cost basis, eliminating the prior requirement to record a Day 1 credit loss expense for non PCD loans. This change addresses long-standing stakeholder concerns that the old dual model framework was overly complex, subjective, and created inconsistent and economically counterintuitive outcomes, particularly because expected losses were already embedded in fair value at acquisition.  ASU 2025-08 will be effective for interim and annual periods for fiscal years beginning after December 15, 2026.  Early adoption is permitted for entities that have not yet issued their

financial statements.  Management has evaluated the impact of the adoption of this standard and determined there would be no material impact to the Company’s consolidated financial position or results of operation.

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Earnings Per Share

3 Months Ended

Mar. 31, 2026

Earnings Per Share

Earnings Per Share

2. Earnings Per Share:

Per share data is based on the weighted average shares of common stock outstanding of 4,617,466 for the three months ended March 31, 2026 and 2025, respectively.  The Company has no potentially dilutive shares.

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Statements of Cash Flows

3 Months Ended

Mar. 31, 2026

Statements of Cash Flows

Statements of Cash Flows

3. Statements of Cash Flows:

The Company has defined cash and cash equivalents as cash and due from banks. Cash and due from banks for the purposes of the Consolidated Statements of Cash Flows, include cash on hand, balances due from banks; which includes non-interest- and interest-bearing accounts, and federal funds sold, all of which mature within ninety days.

The Company paid $1,843,624 and $1,888,799 for the three months ended March 31, 2026 and 2025, respectively, for interest on deposits and borrowings. No federal or state income tax payments were made during the three months ended March 31, 2026 and 2025, respectively. No loans were transferred to other real estate during the three months ended March 31, 2026 and 2025.  

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Investments

3 Months Ended

Mar. 31, 2026

Investments

Investments

4. Investments:

The Company evaluated credit impairment for individual securities available for sale (AFS) whose fair value was below amortized cost with a more than inconsequential risk of default and where the Company had assessed the decline in fair value significant enough to suggest a credit event occurred.  Due to the zero-credit loss assumption and the considerations applied to the securities AFS, there was no ACL recorded for securities AFS as of March 31, 2026 and December 31, 2025. The Company first established an allowance for credit losses for individual securities held to maturity in 2023 and evaluated impairment for individual securities held to maturity again as of December 31, 2025 and determined an allowance for credit loss of $31,000 was appropriate. No additional impairment was recorded as of March 31, 2026.

The amortized cost, fair value and allowance for credit losses related to securities at March 31, 2026 and December 31, 2025, are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
March 31, 2026	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	148,654		15	$	(4,132)	$	144,537
Mortgage-backed securities		41,858		147		(3,029)		38,976
Collateralized mortgage obligations		59,278		72		(3,628)		55,722
States and political subdivisions		99,833		—		(15,525)		84,308
Total available for sale securities	$	349,623	$	234	$	(26,314)	$	323,543

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
December 31, 2025	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	119,363	$	74	$	(3,907)	$	115,530
Mortgage-backed securities		42,656		134		(2,958)		39,832
Collateralized mortgage obligations		61,282		25		(3,478)		57,829
States and political subdivisions		99,939		—		(15,014)		84,925
Total available for sale securities	$	323,240	$	233	$	(25,357)	$	298,116

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
March 31, 2026	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	9,992	$	—	$	(125)	$	9,867	$	—	$	9,992
States and political subdivisions		74,031		11		(8,906)		65,136		(31)		74,000
Total held to maturity securities	$	84,023	$	11	$	(9,031)	$	75,003	$	(31)	$	83,992

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
December 31, 2025	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	14,990	$	10	$	(104)	$	14,896	$	—	$	14,990
States and political subdivisions		76,093		11		(8,565)		67,539		(31)		76,062
Total held to maturity securities	$	91,083	$	21	$	(8,669)	$	82,435	$	(31)	$	91,052

The following table shows a rollforward of the allowance for credit losses on held-to-maturity securities for the three months ended March 31, 2026 and the year ended December 31, 2025 and the three months ended March 31, 2025 and the year ended December 31, 2024 (in thousands):

	State and political
	subdivisions
Balance, December 31, 2025	$	31
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2026	$	31

	State and political
	subdivisions
Balance, December 31, 2024	$	40
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2025	$	40

The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2026 and December 31, 2025, aggregated by credit quality indicators (in thousands):

	March 31, 2026		December 31, 2025
Aaa	$	—	$	—
Aa1/Aa2/Aa3		37,940		44,503
A1/A2		3,123		3,131
Baa1/Baa2		1,000		1,000
Not rated		41,960		42,449
Total	$	84,023	$	91,083

At March 31, 2026 and December 31, 2025, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual for the three months ended March 31, 2026 and the year ended December 31, 2025.

The amortized cost and fair value of debt securities at March 31, 2026, (in thousands) by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are excluded from the contractual categories because the timing of principal repayments is dependent on underlying borrower prepayment patterns, which can cause actual maturities to differ materially from stated contractual maturities.  As a result, contractual maturity information is not meaningful for these securities.

	Amortized Cost		Fair Value
Available for sale securities:
Due in one year or less	$	69,011	$	68,954
Due after one year through five years		97,285		91,853
Due after five years through ten years		50,905		43,226
Due after ten years		31,286		24,812
Mortgage-backed securities		41,858		38,976
Collateralized mortgage obligations		59,278		55,722
Total	$	349,623	$	323,543
Held to maturity securities:
Due in one year or less	$	2,200	$	2,191
Due after one year through five years		39,052		37,506
Due after five years through ten years		29,428		25,519
Due after ten years		13,343		9,787
Total	$	84,023	$	75,003

Available for sale securities with gross unrealized losses at March 31, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows (in thousands):

		Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
March 31, 2026:
U.S. Treasuries	$	63,904	$	100	$	70,619		4,032		134,523	$	4,132
Mortgage-backed securities		—		—		27,655		3,029		27,655		3,029
Collateralized mortgage obligations		3,724		27		35,788		3,601		39,512		3,628
States and political subdivisions		—		—		84,308		15,525		84,308		15,525
Total	$	67,628	$	127	$	218,370	$	26,187	$	285,998	$	26,314

	Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
December 31, 2025:
U.S. Treasuries	$	4,987	$	2	$	70,701	$	3,905		75,688	$	3,907
Mortgage-backed securities		—		—		28,344		2,958		28,344		2,958
Collateralized mortgage obligations		12,182		29		34,811		3,449		46,993		3,478
States and political subdivisions		1,833		177		83,092		14,837		84,925		15,014
Total	$	19,002	$	208	$	216,948	$	25,149	$	235,950	$	25,357

At March 31, 2026, 19 of the 21 Treasuries, 39 of the 46 mortgage-backed securities, 19 of the 26 collateralized mortgage obligations and 75 of the 75 securities issued by states and political subdivisions contained unrealized losses.

There were no sales of available for sale debt securities for the three months ended March 31, 2026 and March 31, 2025.

Securities with a fair value of $337,660,216 and $262,193,802 at March 31, 2026 and December 31, 2025, respectively, were pledged to secure public deposits, federal funds purchased and other balances required by law.

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Loans

3 Months Ended

Mar. 31, 2026

Loans

Loans

5. Loans:

The composition of the loan portfolio at March 31, 2026 and December 31, 2025 is as follows (in thousands):

	March 31, 2026		December 31, 2025
Real estate, residential	$	88,460	$	86,980
Real estate, construction		29,836		24,990
Real estate, nonresidential		124,727		124,843
Commercial and industrial		15,373		17,077
Other		10,418		9,816
Total	$	268,814	$	263,706

The age analysis of the loan portfolio, segregated by class of loans, as of March 31, 2026, and December 31, 2025 is as follows (in thousands):

													Loans Past
													Due Greater
	Number of Days Past Due												Than 90
					Greater		Total				Total		Days and
	30 - 59		60 - 89		Than 90		Past Due		Current		Loans		Still Accruing
March 31, 2026:
Real estate, residential	$	475	$	—	$	331	$	806	$	87,654	$	88,460	$	—
Real estate, construction		123		—		—		123		29,713		29,836		—
Real estate, nonresidential		322		4		—		326		124,401		124,727		—
Commercial and industrial		9		—		—		9		15,364		15,373		—
Other		33		—		—		33		10,385		10,418		—
Total	$	962	$	4	$	331	$	1,297	$	267,517	$	268,814	$	—
December 31, 2025:
Real estate, residential	$	398	$	274	$	17	$	689	$	86,291	$	86,980	$	—
Real estate, construction		115		—		—		115		24,875		24,990		—
Real estate, nonresidential		104		188		—		292		124,551		124,843		—
Commercial and industrial		—		385		13		398		16,679		17,077		—
Other		24		261		—		285		9,531		9,816		—
Total	$	641	$	1,108	$	30	$	1,779	$	261,927	$	263,706	$	—

The Company monitors the credit quality of its loan portfolio through the use of a loan grading system. A score of 1 – 5 is assigned to the loan based on factors including repayment ability, trends in net worth and/or financial condition of the borrower and guarantors, employment stability, management ability, loan to value fluctuations, the type and structure of the loan, conformity of the loan to bank policy and payment performance. Based on the total score, a loan grade of A, B, C, S, D, E or F is applied. A grade of A will generally be applied to loans for customers that are well known to the Company and that have excellent sources of repayment. A grade of B will generally be applied to loans for customers that have excellent sources of repayment which have no identifiable risk of collection. A grade of C will generally be applied to loans for customers that have adequate sources of repayment which have little identifiable risk of collection. A grade of S will generally be applied to loans for customers who meet the criteria for a grade of C but also warrant additional monitoring by placement on the watch list. A grade of D will generally be applied to loans for customers that are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans with a grade of D have unsatisfactory characteristics such as cash flow deficiencies, bankruptcy filing by the borrower or dependence on the sale of collateral for the primary source of repayment, causing more than acceptable levels of risk. Loans 60 to 89 days past due receive a grade of D. A grade of E will generally be applied to loans for customers with weaknesses inherent in the D classification and in which collection or liquidation in full is questionable. In addition, on a monthly basis the Company determines which loans are 90 days or more past due and assigns a grade of E to them.

A grade of F is applied to loans which are considered uncollectible and of such little value that their continuance in an active bank is not warranted. Loans with this grade are charged off, even though partial or full recovery may be possible in the future.

The following tables further disaggregate credit quality disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2026 and December 31, 2025 (in thousands). The Company defines vintage as the later of origination, or restructure date.

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real Estate, Residential Loans:
A, B, or C	$	2,650	$	12,586	$	10,839	$	13,047	$	12,151	$	29,504	$	5,246	$	1,322	$	87,345
S		—		—		—		—		—		45		—		—		45
D		—		—		—		—		—		503		59		—		562
E		—		—		166		—		—		342		—		—		508
F		—		—		—		—		—		—		—		—		—
Total Real Estate Residential Loans	$	2,650	$	12,586	$	11,005	$	13,047	$	12,151	$	30,394	$	5,305	$	1,322	$	88,460
Real Estate, Construction Loans:
A, B, or C	$	1,354	$	1,288	$	2,539	$	420	$	1,252	$	5,044	$	17,809	$	—	$	29,706
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		130		—		—		130
E		—		—		—		—		—		—				—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Construction Loans	$	1,354	$	1,288	$	2,539	$	420	$	1,252	$	5,174	$	17,809	$	—	$	29,836
Real Estate,Nonresidential Loans:
A, B, or C	$	497	$	16,587	$	2,492	$	10,299	$	17,453	$	47,474	$	29,244	$	—	$	124,046
S		—		—		—		—		—		45		—		—		45
D		—		—		—		—		—		636		—		—		636
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Nonresidential Loans	$	497	$	16,587	$	2,492	$	10,299	$	17,453	$	48,155	$	29,244	$	—	$	124,727
Commercial and industrial
A, B, or C	$	139	$	1,911	$	820	$	403	$	282	$	4,157	$	7,652	$	—	$	15,364
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		9		—		—		—		9
F		—		—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	139	$	1,911	$	820	$	403	$	291	$	4,157	$	7,652	$	—	$	15,373
Consumer/Other Loans
A, B, or C	$	1,409	$	3,734	$	2,370	$	1,600	$	457	$	448	$	393	$	—	$	10,411
S		—		—		—		—		—		—		—		—		—
D		—		—		3		—		—		—		4		—		7
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	1,409	$	3,734	$	2,373	$	1,600	$	457	$	448	$	397	$	—	$	10,418

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
December 31, 2025:
Real Estate, Residential Loans:
A, B, or C	$	12,886	$	10,060	$	12,735	$	12,435	$	9,218	$	21,004	$	4,519	$	2,982	$	85,839
S		—		—		—		—		—		49		—		—		49
D		—		—		—		—		—		514		58		—		572
E		—		167		—		—		274		79		—		—		520
F		—		—		—		—		—		—		—		—		—
Total Real Estate Residential Loans	$	12,886	$	10,227	$	12,735	$	12,435	$	9,492	$	21,646	$	4,577	$	2,982	$	86,980
Real Estate, Construction Loans:
A, B, or C	$	1,395	$	2,662	$	319	$	1,309	$	1,770	$	3,382	$	13,903	$	—	$	24,740
S		—		—		—		—		—		—		—		—		—
D		—		—		117		—		—		133		—		—		250
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Construction Loans	$	1,395	$	2,662	$	436	$	1,309	$	1,770	$	3,515	$	13,903	$	—	$	24,990
Real Estate,Nonresidential Loans:
A, B, or C	$	16,627	$	2,518	$	10,432	$	19,922	$	9,473	$	41,933	$	23,425	$	—	$	124,330
S		—		—		—		—		—		48		—		—		48
D		—		—		—		—		—		465		—		—		465
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Nonresidential Loans	$	16,627	$	2,518	$	10,432	$	19,922	$	9,473	$	42,446	$	23,425	$	—	$	124,843
Commercial and industrial
A, B, or C	$	2,169	$	875	$	323	$	305	$	2	$	4,222	$	9,168	$	—	$	17,064
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		13		—		—		—		—		13
F		—		—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	2,169	$	875	$	323	$	318	$	2	$	4,222	$	9,168	$	—	$	17,077
Consumer/Other Loans
A, B, or C	$	4,102	$	2,557	$	1,780	$	502	$	236	$	249	$	383	$	—	$	9,809
S		—		—		—		—		—		—		—		—		—
D		—		3		—		—		—		—		4		—		7
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	4,102	$	2,560	$	1,780	$	502	$	236	$	249	$	387	$	—	$	9,816

The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated (in thousands):

	March 31, 2026
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
Real estate, residential	$	344	$	164	$	508
Commercial and industrial		—		9		9
Total	$	344	$	173	$	517

	December 31, 2025
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
Real estate, residential	$	352	$	168	$	520
Commercial and industrial		—		13		13
Total	$	352	$	181	$	533

The Company recognized no interest income on nonaccrual loans during the three months ended March 31, 2026 or the year ended December 31, 2025.

The following table represents the accrued interest receivables written off by reversing interest income during the three months ended March 31, 2026 and the year ended December 31, 2025 (in thousands):

	March 31, 2026		December 31, 2025
Real estate, residential	$	—	$	3
Total loans	$	—	$	3

The Company designates individually evaluated loans on nonaccrual status as collateral-dependent loans, as well as other loans that management of the Company designates as having higher risk. Collateral-dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required.

The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2026 and December 31, 2025 (in thousands):

	March 31, 2026		December 31, 2025
	Residential		Residential
	Properties		Properties
Real estate, residential	$	512	$	523
Commercial and industrial		9		13
Total loans	$	521	$	536

The following tables further disaggregates nonaccrual disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2026 and December 31, 2025 (in thousands). The Company defines vintage as the later of origination or restructure date:

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real estate, residential	$	—	$	—	$	167	$	—	$	—	$	341	$	—	$	—	$	508
Real estate, construction		—		—		—		—		—		—		—		—		—
Real estate, nonresidential		—		—		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		9		—		—		—		9
Consumer/Other		—		—		—		—		—		—		—		—		—
Total Loans on Nonaccrual	$	—	$	—	$	167	$	—	$	9	$	341	$	—	$	—	$	517

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
December 31, 2025:
Real estate, residential	$	—	$	167	$	—	$	—	$	274	$	79	$	—	$	—	$	520
Real estate, construction		—		—		—		—		—		—		—		—		—
Real estate, nonresidential		—		—		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		13		—		—		—		—		13
Consumer/Other		—		—		—		—		—		—		—		—		—
Total Loans on Nonaccrual	$	—	$	167	$	—	$	13	$	274	$	79	$	—	$	—	$	533

The Company had no loan modifications made to borrowers experiencing financial difficulty as of March 31, 2026 and  of December 31, 2025.

XML

Allowance for Credit Losses

3 Months Ended

Mar. 31, 2026

Allowance for Credit Losses

Allowance for Credit Losses

6. Allowance for Credit Losses:

The following tables show activity in the allowance for credit losses by portfolio class for the three and three months ended March 31, 2026 and 2025 as well as the corresponding recorded investment in loans at the end of each period.

The calculation of the allowance for credit losses under CECL is performed using two primary approaches: a collective approach for pools of loans that have similar risk characteristics using a loss rate analysis, and a specific reserve analysis for credits individually evaluated.

Transactions in the allowance for credit losses for the three ended March 31, 2026 and 2025, and the balances of loans, individually and collectively evaluated for impairment, as of March 31, 2026 and 2025, are as follows (in thousands):

	Real Estate,		Real Estate,		Real Estate,		Commercial
	Residential		Construction		Nonresidential		and Industrial		Other		Total
Three months ended March 31, 2026
Allowance for credit losses
Beginning balance	$	759	$	183	$	1,729	$	108	$	160	$	2,939
Charge-offs		(1)		—		—		—		(56)		(57)
Recoveries		15		9		155		—		39		218
Net provision for credit losses		54		46		(145)		7		38		—
Ending Balance	$	827	$	238	$	1,739	$	115	$	181	$	3,100
Reserve for unfunded lending commitments
Beginning balance	$	2	$	9	$	12	$	15	$	22	$	60
Provision for losses on unfunded commitments		1		(1)		(1)		(3)		(4)		(8)
Ending balance-reserve for unfunded commitments	$	3	$	8	$	11	$	12	$	18	$	52
Total allowance for credit losses	$	830	$	246	$	1,750	$	127	$	199	$	3,152
Allowance for credit losses
Individually evaluated	$	80	$	—	$	—	$	9	$	7	$	96
Collectively evaluated		747		238		1,739		106		174		3,004
Total allowance for credit losses:	$	827	$	238	$	1,739	$	115	$	181	$	3,100
Reserve for unfunded lending commitments
Individually evaluated	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated		3		8		11		12		18		52
Reserve for unfunded lending commitments:		3		8		11		12		18		52
Total allowance for credit losses, March 31, 2026	$	830	$	246	$	1,750	$	127	$	199	$	3,152
Loans, Quarter ended March 31, 2026
Individually evaluated	$	1,070	$	130	$	636	$	9	$	7	$	1,852
Collectively evaluated		87,390		29,706		124,091		15,364		10,411		266,962
Total loans, March 31, 2026	$	88,460	$	29,836	$	124,727	$	15,373	$	10,418	$	268,814

	Real Estate,		Real Estate,		Real Estate,		Commercial
	Residential		Construction		Nonresidential		and Industrial		Other		Total
Three months ended March 31, 2025
Allowance for credit losses
Beginning balance	$	676	$	135	$	1,835	$	92	$	244	$	2,982
Charge-offs		—		—		—		—		(53)		(53)
Recoveries		2		9		1		—		28		40
Net provision for credit losses		50		(4)		(70)		(12)		36		—
Ending Balance	$	728	$	140	$	1,766	$	80	$	255	$	2,969
Reserve for unfunded lending commitments
Beginning balance	$	2	$	23	$	10	$	12	$	36	$	83
Provision for losses on unfunded commitments		1		(3)		1		3		(7)		(5)
Ending balance-reserve for unfunded commitments	$	3	$	20	$	11	$	15	$	29	$	78
Total allowance for credit losses	$	731	$	160	$	1,777	$	95	$	284	$	3,047
Allowance for credit losses
Individually evaluated	$	42	$	—	$	—	$	—	$	9	$	51
Collectively evaluated		686		140		1,766		80		246		2,918
Total allowance for credit losses:	$	728	$	140	$	1,766	$	80	$	255	$	2,969
Reserve for unfunded lending commitments
Individually evaluated	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated		3		20		11		15		29		78
Reserve for unfunded lending commitments:		3		20		11		15		29		78
Total allowance for credit losses, March 31, 2025	$	731	$	160	$	1,777	$	95	$	284	$	3,047
Loans, Quarter ended March 31, 2025
Individually evaluated	$	936	$	261	$	470	$	21	$	9	$	1,697
Collectively evaluated		79,427		17,277		110,044		12,338		10,862		229,948
Total loans, March 31, 2025	$	80,363	$	17,538	$	110,514	$	12,359	$	10,871	$	231,645

The following table further disaggregates gross charge-off disclosures by amortized cost by credit quality indicator, class, and year of origination for the three month periods ended March 31, 2026 and March 31, 2025 (in thousands). The Company defines vintage as the later of origination or restructure date.

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real estate, residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
A,B, or C		—		—		—		—		—		—		—		—		—
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		—		1		—		—		1
F		—		—		—		—		—		—		—		—		—
Total Real estate, nonresidential loans	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1
Consumer/Other
A,B, or C	$	55	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	56
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	55	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	56
Total Gross Loan Chargeoffs:	$	55	$	1	$	—	$	—	$	—	$	1	$	—	$	—	$	57

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
March 31, 2025:
Consumer/Other
A,B, or C	$	48	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	48
S		—		—		—		—		—		—		—		—		—
D		—		2		—		—		—		—		—		—		2
E		—		3		—		—		—		—		—		—		3
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	48	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	53
Total Gross Loan Chargeoffs:	$	48	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	53

XML

Shareholders' Equity

3 Months Ended

Mar. 31, 2026

Shareholders' Equity

Shareholders' Equity

7. Shareholders’ Equity:

There were no dividends declared during the three month periods ended March 31, 2026 and March 31, 2025.

The components of accumulated other comprehensive income, net of tax, as of March 31, 2026 and December 31, 2025, are as follows:

	March 31, 2026		December 31, 2025
Beginning balance accumulated other comprehensive (loss) income	$	(28,470)	$	(36,887)
Net unrealized gain (loss) on available for sale securities, net of tax		(718)		9,077
(Loss) gain from unfunded post-retirement benefit obligation, net of tax		—		(660)
Ending balance accumulated other comprehensive (loss)income	$	(29,188)	$	(28,470)

XML

Fair Value Measurements and Disclosures

3 Months Ended

Mar. 31, 2026

Fair Value Measurements and Disclosures

Fair Value Measurements and Disclosures

8. Fair Value Measurements and Disclosures:

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available for sale securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record other assets at fair value on a non-recurring basis, such as impaired loans and ORE. These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments.

Fair Value Hierarchy

The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2 - Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques.

Following is a description of valuation methodologies used to determine the fair value of financial assets and liabilities.

Cash and Due from Banks

The carrying amount shown as cash and due from banks approximates fair value.

Investments

The fair value of available for sale securities and held to maturity securities is based on quoted market prices. The Company’s available for sale securities are reported at their estimated fair value and held to maturity securities are reported at their amortized cost, and their estimated fair value, which is determined utilizing several sources, is disclosed in the financial statements and footnotes. The primary source is ICE Data Pricing and Reference Data, LLC (“ICE”) which purchased Interactive Data Corporation (“IDC”) but kept the IDC methodologies. Those methodologies include utilizing pricing models that vary based on asset class and include available trade, bid and other market information and whose methodology includes broker quotes, proprietary models and vast descriptive databases. Another source for determining fair value is matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark securities. The Company’s available for sale securities and held to maturity securities for which fair value is determined through the use of such pricing models and matrix pricing are classified as Level 2 assets.

Loans

The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings for the remaining maturities. The cash flows considered in computing the fair value of such loans are segmented into categories relating to the nature of the contract and collateral based on contractual principal maturities. Appropriate adjustments are made to reflect probable credit losses. Cash flows have not been adjusted for such factors as prepayment risk or the effect of the maturity of balloon notes. The fair value of floating rate loans is estimated to be its carrying value. At each reporting period, the Company determines which loans are collateral dependent. Accordingly, the Company’s collateral dependent loans are reported at their estimated fair value on a non-recurring basis. An allowance for each loan, which is generally collateral-dependent, is calculated based on the fair value of its collateral. The fair value of the collateral is based on appraisals performed by third-party valuation specialists. Factors including the assumptions and techniques utilized by the appraiser are considered by Management. If the recorded investment in the collateral dependent loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for credit losses. Collateral dependent loans are non-recurring Level 3 assets.

Other Real Estate

In the course of lending operations, Management may determine that it is necessary to foreclose on the related collateral. Other real estate acquired through foreclosure or repossession is carried at fair value, less estimated costs to sell. The fair value of the collateral is based on appraisals performed by third-party valuation specialists or internally prepared valuations. Other real estate is a non-recurring Level 3 asset.

Deposits

The fair value of non-interest bearing demand and interest bearing savings and demand deposits is the amount reported in the financial statements. The fair value of time deposits is estimated by discounting the cash flows using current rates of time deposits with similar remaining maturities. The cash flows considered in computing the fair value of such deposits are based on contractual maturities for automatic renewal at current interest rates unless the bank plans to purposely reduce time deposit balances as they mature.  Non-interest deposits are non-recurring Level 1 liabilities, while interest bearing deposits are classified as Level 3 liabilities.

Borrowings from Federal Home Loan Bank

The fair value of Federal Home Loan Bank (“FHLB”) fixed rate borrowings is estimated using discounted cash flows based on current incremental borrowing rates for similar types of borrowing arrangements. The fair value of FHLB variable rate borrowings is estimated to be its carrying value.  Borrowings from Federal Home Loan Bank are classified as Level 2 liabilities.

The balances of available for sale securities, which are the only assets measured at fair value on a recurring basis, by level within the fair value hierarchy and by investment type, as of March 31, 2026 and December 31, 2025, were as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2		Level 3
March 31, 2026:
U.S. Treasuries	$	144,537	$	—	$	144,537	$	—
Mortgage-backed securities		38,976		—		38,976		—
Collateralized mortgage obligations		55,722		—		55,722		—
States and political subdivisions		84,308		—		84,308		—
Total	$	323,543	$	—	$	323,543	$	—
December 31, 2025:
U.S. Treasuries	$	115,530	$	—	$	115,530	$	—
Mortgage-backed securities		39,832		—		39,832		—
Collateralized mortgage obligations		57,829		—		57,829		—
States and political subdivisions		84,925		—		84,925		—
Total	$	298,116	$	—	$	298,116	$	—

Collateral dependent loans, which are measured at fair value on a non-recurring basis, by level within the fair value hierarchy as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2		Level 3
March 31, 2026	$	—	$	—	$	—	$	—
December 31, 2025	$	—	$	—	$	—	$	—

The following table presents a summary of changes in the fair value of other real estate which is measured using Level 3 inputs (in thousands):

	March 31, 2026		December 31, 2025
Balance, beginning of year	$	—	$	9
Loans transferred to ORE		—		266
Sales		—		(266)
Write-downs		—		—
Chargeoffs		—		(9)
Balance, end of year	$	—	$	—

The carrying value and estimated fair value of financial instruments, by level within the fair value hierarchy, at March 31, 2026 and December 31, 2025 are as follows (in thousands):

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
March 31, 2026:
Financial Assets:
Cash and due from banks	$	57,386	$	57,386	$	—	$	—	$	57,386
Available for sale securities		323,543		—		323,543		—		323,543
Held to maturity securities, net		83,992		—		75,003		—		75,003
Loans, net		265,714		—		—		265,053		265,053
Financial Liabilities:
Deposits:
Non-interest bearing		187,743		187,743		—		—		187,743
Interest bearing		441,001		—		—		403,926		403,926
Time deposits		37,445		—		—		36,987		36,987

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2025:
Financial Assets:
Cash and due from banks	$	19,581	$	19,581	$	—	$	—	$	19,581
Available for sale securities		298,116		—		298,116		—		298,116
Held to maturity securities, net		91,052		—		82,435		—		82,435
Loans, net		260,767		—		—		259,500		259,500
Financial Liabilities:
Deposits:
Non-interest bearing		172,909		172,909		—		—		172,909
Interest bearing		393,934		—		—		358,151		358,151
Time deposits		37,586		—		—		37,128		37,128
Borrowings from Federal Home Loan Bank		800		—		800		—		800

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Income Taxes

3 Months Ended

Mar. 31, 2026

Income Taxes

Income Taxes

9. Income Taxes:

Deferred taxes (or deferred charges) as of March 31, 2026 and December 31, 2025, included in other assets, were as follows (in thousands):

	March 31, 2026		December 31, 2025
Deferred tax assets:
Allowance for credit losses	$	825	$	783
Employee benefit plans' liabilities		4,020		4,028
Unrealized loss on available for sale securities, charged from equity		6,507		6,268
Loss on credit impairment of securities		423		423
Earned retiree health benefits plan liability		1,172		1,172
General business and AMT credits		17		17
State income tax net operating loss carryforward		705		771
Other		132		126
Valuation allowance		(423)		(423)
Deferred tax assets		13,378		13,165
Deferred tax liabilities:
Unearned retiree health benefits plan asset		240		240
Bank premises and equipment		1,812		1,883
Deferred tax liabilities		2,052		2,123
Net deferred taxes	$	11,326	$	11,042

Income taxes consist of the following components (in thousands):

	Three Months Ended March 31,
	2026		2025
Current:
Federal	$	447	$	258
State		—		—
Total current		447		258
Deferred:
Federal		(125)		46
State		80		71
Change in valuation allowance		—		—
Total deferred		(45)		117
Totals	$	402	$	375

Income taxes amounted to less than the amounts computed by applying the U.S. Federal income tax rate of 21.0% for 2026 and 2025 to income before income taxes and State income tax rate of 3.95% for 2026 and 2025.  The reasons for these differences are shown below (in thousands):

	Three Months Ended March 31,
	2026				2025
	Tax		Rate		Tax		Rate
Taxes computed at statutory rate	$	388	21	%	$	354	21	%
Increase (decrease) resulting from:
State income tax expense, net of federal effect		64	3			57	3
Tax -exempt interest income		(38)	(2)			(42)	(3)
Income from BOLI		(27)	(1)			(25)	(1)
Tefra disallowance		15	1			14	1
Federal tax credits		-	-			(2)	(0)
Other		-	-			19	1
Other changes in valuation allowance		-	-			-	-
Total income tax (benefit) expense	$	402	22	%	$	375	22	%

The primary sources of permanent differences are due to tax-exempt interest income earned on certain investment securities, bank owned life insurance, and federal tax credits.

During the three months ended March 31, 2026, the Company recorded current and deferred income tax expense (benefit) of $447,000 and ($45,000), respectively or a net income tax expense of $402,000 and an effective rate of 22%.  During the three months ended March 31, 2025, the Company recorded current and deferred income tax expense of $258,000 and $117,000, respectively or a net income tax expense of $375,000 and an effective rate of 22%.  The Company paid no federal or state income tax payments during the three months ended March 31, 2026 and March 31, 2025.

A valuation allowance is recognized against deferred tax assets when, based on the consideration of all available positive and negative evidence using a more likely than not criteria, it is determined that all or a portion of these tax benefits may not be realized. This assessment requires consideration of all sources of taxable income available to realize the deferred tax asset including taxable income in prior carry-back years, future reversals of existing temporary differences, tax planning strategies and future taxable income exclusive of reversing temporary differences and carryforwards.

As of March 31, 2026, the net deferred tax asset was $11,326,000.  As of December 31, 2025 the net deferred tax asset was $11,042,000.  

The Company has reviewed its income tax positions and specifically considered the recognition and measurement requirements of the benefits recorded in its financial statements for tax positions taken or expected to be taken in its tax returns. The Company currently has no unrecognized tax benefits that, if recognized, would favorably affect the income tax rate in future periods.

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Segment Reporting

3 Months Ended

Mar. 31, 2026

Segment Reporting

Segment Reporting

10. Segment Reporting:

The Company is engaged in a single line of business as a financial institution, which provides a full range of banking, financial and trust services to state, county and local government entities and individuals and small and commercial businesses.  The Company has identified its President and Chief Executive Officer as the chief operating decision maker (“CODM”), who uses consolidated net income (see Consolidated Statements of Operation) to determine how resources should be allocated and manage the Company.  The Company’s operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies described in Note A included in Form 10-K for the year ended December 31, 2025.  The Company’s most significant reported source of income and expense are interest income and interest expense (see Consolidated Statements of Operations).  The remaining significant segment income and expenses are described in the Consolidated Statements of Operations.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,446	$ 1,310

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2026
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2026

Basis of Presentation

Use of Estimates

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for credit losses (ACL) and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income.  

Summary of Significant Accounting Policies - The accounting and reporting policies of the Company conform to GAAP and general practices within the banking industry.

There were no material changes or developments during the reporting period with respect to methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.

Allowance for Credit Losses

Allowance for credit losses

In general, the Company uses a broad range of data to estimate current expected credit losses (“CECL”), including information about past events, current conditions, and reasonable and supportable forecasts relevant to assessing the collectability of the cash flows of financial assets.

CECL requires the Bank to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risk characteristics exist. The Bank has determined that Call Report categories will be utilized, and Management will maintain the option to further segment the portfolio if we deem it beneficial to the analysis.

The Company’s loan portfolio segments as of March 31, 2026 and December 31, 2025 were as follows:

Real Estate Loans

Residential-Residential mortgage loans are susceptible to weakening general economic conditions, increases in unemployment rates, and declining real estate values.

Construction-Risk common to commercial construction loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements, and declines in real estate values. Residential construction loans are susceptible to those same risks as well as those associated with residential mortgage loans. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates.

Nonresidential-Risks to this loan category include industry concentration and the inability to monitor the condition of collateral. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt, declines in real estate values, and lack of suitable alternative use for properties. These loans are also susceptible to declines in occupancy rates, business failure, and general economic conditions.

Commercial and Industrial-Risk to this loan category include industry concentration and the practical limitations associated with monitoring the condition of the collateral which often consists of inventory, accounts receivable, and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt.

Other-Risk common to these loans include regulatory risks, unemployment, changes in local economic conditions, and the inability to monitor collateral consisting of personal property.

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

There were no new accounting pronouncements issued or adopted during the three months ended March 31, 2026 that are expected to have a material impact on the Company’s consolidated financial statements.

Accounting Standards Update –In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2025-11 (“ASU 2025-11”), Interim Reporting (Topic 270): Narrow-Scope Improvements.  ASU 2025-11 clarifies the applicability, form and content of interim financial statements and disclosures and improves the navigability of the interim reporting guidance in ASC 270.  The amendments introduce a disclosure principle requiring entities to disclose events or changes occurring since the end of the most recent annual reporting period that have a material effect on the entity, and they consolidate interim disclosure requirements from other Topics into ASC 270.  ASU 2025-11 is effective for public business entities for interim reporting periods within annual periods beginning after December 15, 2027, and for all other entities one year later.  Early adoption is permitted. Management has evaluated the impact of the adoption of this standard and determined there would be no material impact to the Company’s consolidated financial position or results of operations.

Accounting Standards Update –In November 2025, the Financial Accounting Standards Board issued Accounting Standards Update 2025-08 (“ASU 2025-08”), Purchased Loans (Topic 326).  ASU 2025-08 updates the credit loss accounting model under Topic 326 by expanding the gross up approach—previously limited to Purchased Credit Deteriorated (PCD) assets—to a broader class of acquired loans called purchased seasoned loans (PSLs). Under the new guidance, entities recognize an allowance for expected credit losses at acquisition with a corresponding increase to the loan’s amortized cost basis, eliminating the prior requirement to record a Day 1 credit loss expense for non PCD loans. This change addresses long-standing stakeholder concerns that the old dual model framework was overly complex, subjective, and created inconsistent and economically counterintuitive outcomes, particularly because expected losses were already embedded in fair value at acquisition.  ASU 2025-08 will be effective for interim and annual periods for fiscal years beginning after December 15, 2026.  Early adoption is permitted for entities that have not yet issued their

financial statements.  Management has evaluated the impact of the adoption of this standard and determined there would be no material impact to the Company’s consolidated financial position or results of operation.

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Investments (Tables)

3 Months Ended

Mar. 31, 2026

Investments

Schedule of amortized cost, estimated fair value, and allowance for credit losses of available-for-sale and held-to-maturity investment securities

The amortized cost, fair value and allowance for credit losses related to securities at March 31, 2026 and December 31, 2025, are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
March 31, 2026	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	148,654		15	$	(4,132)	$	144,537
Mortgage-backed securities		41,858		147		(3,029)		38,976
Collateralized mortgage obligations		59,278		72		(3,628)		55,722
States and political subdivisions		99,833		—		(15,525)		84,308
Total available for sale securities	$	349,623	$	234	$	(26,314)	$	323,543

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
December 31, 2025	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	119,363	$	74	$	(3,907)	$	115,530
Mortgage-backed securities		42,656		134		(2,958)		39,832
Collateralized mortgage obligations		61,282		25		(3,478)		57,829
States and political subdivisions		99,939		—		(15,014)		84,925
Total available for sale securities	$	323,240	$	233	$	(25,357)	$	298,116

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
March 31, 2026	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	9,992	$	—	$	(125)	$	9,867	$	—	$	9,992
States and political subdivisions		74,031		11		(8,906)		65,136		(31)		74,000
Total held to maturity securities	$	84,023	$	11	$	(9,031)	$	75,003	$	(31)	$	83,992

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
December 31, 2025	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	14,990	$	10	$	(104)	$	14,896	$	—	$	14,990
States and political subdivisions		76,093		11		(8,565)		67,539		(31)		76,062
Total held to maturity securities	$	91,083	$	21	$	(8,669)	$	82,435	$	(31)	$	91,052

Schedule of allowance for credit losses on held-to-maturity securities

The following table shows a rollforward of the allowance for credit losses on held-to-maturity securities for the three months ended March 31, 2026 and the year ended December 31, 2025 and the three months ended March 31, 2025 and the year ended December 31, 2024 (in thousands):

	State and political
	subdivisions
Balance, December 31, 2025	$	31
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2026	$	31

	State and political
	subdivisions
Balance, December 31, 2024	$	40
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2025	$	40

Schedule of amortized cost of debt securities held-to-maturity aggregated by credit quality indicators

The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2026 and December 31, 2025, aggregated by credit quality indicators (in thousands):

	March 31, 2026		December 31, 2025
Aaa	$	—	$	—
Aa1/Aa2/Aa3		37,940		44,503
A1/A2		3,123		3,131
Baa1/Baa2		1,000		1,000
Not rated		41,960		42,449
Total	$	84,023	$	91,083

Schedule of amortized cost and fair value of debt securities by contractual maturity

The amortized cost and fair value of debt securities at March 31, 2026, (in thousands) by contractual maturity, are shown below

	Amortized Cost		Fair Value
Available for sale securities:
Due in one year or less	$	69,011	$	68,954
Due after one year through five years		97,285		91,853
Due after five years through ten years		50,905		43,226
Due after ten years		31,286		24,812
Mortgage-backed securities		41,858		38,976
Collateralized mortgage obligations		59,278		55,722
Total	$	349,623	$	323,543
Held to maturity securities:
Due in one year or less	$	2,200	$	2,191
Due after one year through five years		39,052		37,506
Due after five years through ten years		29,428		25,519
Due after ten years		13,343		9,787
Total	$	84,023	$	75,003

Schedule of available for sale securities with gross unrealized losses aggregated by investment category and length of time

Available for sale securities with gross unrealized losses at March 31, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows (in thousands):

		Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
March 31, 2026:
U.S. Treasuries	$	63,904	$	100	$	70,619		4,032		134,523	$	4,132
Mortgage-backed securities		—		—		27,655		3,029		27,655		3,029
Collateralized mortgage obligations		3,724		27		35,788		3,601		39,512		3,628
States and political subdivisions		—		—		84,308		15,525		84,308		15,525
Total	$	67,628	$	127	$	218,370	$	26,187	$	285,998	$	26,314

	Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
December 31, 2025:
U.S. Treasuries	$	4,987	$	2	$	70,701	$	3,905		75,688	$	3,907
Mortgage-backed securities		—		—		28,344		2,958		28,344		2,958
Collateralized mortgage obligations		12,182		29		34,811		3,449		46,993		3,478
States and political subdivisions		1,833		177		83,092		14,837		84,925		15,014
Total	$	19,002	$	208	$	216,948	$	25,149	$	235,950	$	25,357

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Loans (Tables)

3 Months Ended

Mar. 31, 2026

Loans

Schedule of composition of the loan portfolio

The composition of the loan portfolio at March 31, 2026 and December 31, 2025 is as follows (in thousands):

	March 31, 2026		December 31, 2025
Real estate, residential	$	88,460	$	86,980
Real estate, construction		29,836		24,990
Real estate, nonresidential		124,727		124,843
Commercial and industrial		15,373		17,077
Other		10,418		9,816
Total	$	268,814	$	263,706

Schedule of age analysis of the loan portfolio, segregated by class of loans

The age analysis of the loan portfolio, segregated by class of loans, as of March 31, 2026, and December 31, 2025 is as follows (in thousands):

													Loans Past
													Due Greater
	Number of Days Past Due												Than 90
					Greater		Total				Total		Days and
	30 - 59		60 - 89		Than 90		Past Due		Current		Loans		Still Accruing
March 31, 2026:
Real estate, residential	$	475	$	—	$	331	$	806	$	87,654	$	88,460	$	—
Real estate, construction		123		—		—		123		29,713		29,836		—
Real estate, nonresidential		322		4		—		326		124,401		124,727		—
Commercial and industrial		9		—		—		9		15,364		15,373		—
Other		33		—		—		33		10,385		10,418		—
Total	$	962	$	4	$	331	$	1,297	$	267,517	$	268,814	$	—
December 31, 2025:
Real estate, residential	$	398	$	274	$	17	$	689	$	86,291	$	86,980	$	—
Real estate, construction		115		—		—		115		24,875		24,990		—
Real estate, nonresidential		104		188		—		292		124,551		124,843		—
Commercial and industrial		—		385		13		398		16,679		17,077		—
Other		24		261		—		285		9,531		9,816		—
Total	$	641	$	1,108	$	30	$	1,779	$	261,927	$	263,706	$	—

Schedule of credit quality disclosures

The following tables further disaggregate credit quality disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2026 and December 31, 2025 (in thousands). The Company defines vintage as the later of origination, or restructure date.

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real Estate, Residential Loans:
A, B, or C	$	2,650	$	12,586	$	10,839	$	13,047	$	12,151	$	29,504	$	5,246	$	1,322	$	87,345
S		—		—		—		—		—		45		—		—		45
D		—		—		—		—		—		503		59		—		562
E		—		—		166		—		—		342		—		—		508
F		—		—		—		—		—		—		—		—		—
Total Real Estate Residential Loans	$	2,650	$	12,586	$	11,005	$	13,047	$	12,151	$	30,394	$	5,305	$	1,322	$	88,460
Real Estate, Construction Loans:
A, B, or C	$	1,354	$	1,288	$	2,539	$	420	$	1,252	$	5,044	$	17,809	$	—	$	29,706
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		130		—		—		130
E		—		—		—		—		—		—				—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Construction Loans	$	1,354	$	1,288	$	2,539	$	420	$	1,252	$	5,174	$	17,809	$	—	$	29,836
Real Estate,Nonresidential Loans:
A, B, or C	$	497	$	16,587	$	2,492	$	10,299	$	17,453	$	47,474	$	29,244	$	—	$	124,046
S		—		—		—		—		—		45		—		—		45
D		—		—		—		—		—		636		—		—		636
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Nonresidential Loans	$	497	$	16,587	$	2,492	$	10,299	$	17,453	$	48,155	$	29,244	$	—	$	124,727
Commercial and industrial
A, B, or C	$	139	$	1,911	$	820	$	403	$	282	$	4,157	$	7,652	$	—	$	15,364
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		9		—		—		—		9
F		—		—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	139	$	1,911	$	820	$	403	$	291	$	4,157	$	7,652	$	—	$	15,373
Consumer/Other Loans
A, B, or C	$	1,409	$	3,734	$	2,370	$	1,600	$	457	$	448	$	393	$	—	$	10,411
S		—		—		—		—		—		—		—		—		—
D		—		—		3		—		—		—		4		—		7
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	1,409	$	3,734	$	2,373	$	1,600	$	457	$	448	$	397	$	—	$	10,418

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
December 31, 2025:
Real Estate, Residential Loans:
A, B, or C	$	12,886	$	10,060	$	12,735	$	12,435	$	9,218	$	21,004	$	4,519	$	2,982	$	85,839
S		—		—		—		—		—		49		—		—		49
D		—		—		—		—		—		514		58		—		572
E		—		167		—		—		274		79		—		—		520
F		—		—		—		—		—		—		—		—		—
Total Real Estate Residential Loans	$	12,886	$	10,227	$	12,735	$	12,435	$	9,492	$	21,646	$	4,577	$	2,982	$	86,980
Real Estate, Construction Loans:
A, B, or C	$	1,395	$	2,662	$	319	$	1,309	$	1,770	$	3,382	$	13,903	$	—	$	24,740
S		—		—		—		—		—		—		—		—		—
D		—		—		117		—		—		133		—		—		250
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Construction Loans	$	1,395	$	2,662	$	436	$	1,309	$	1,770	$	3,515	$	13,903	$	—	$	24,990
Real Estate,Nonresidential Loans:
A, B, or C	$	16,627	$	2,518	$	10,432	$	19,922	$	9,473	$	41,933	$	23,425	$	—	$	124,330
S		—		—		—		—		—		48		—		—		48
D		—		—		—		—		—		465		—		—		465
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Real Estate, Nonresidential Loans	$	16,627	$	2,518	$	10,432	$	19,922	$	9,473	$	42,446	$	23,425	$	—	$	124,843
Commercial and industrial
A, B, or C	$	2,169	$	875	$	323	$	305	$	2	$	4,222	$	9,168	$	—	$	17,064
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		13		—		—		—		—		13
F		—		—		—		—		—		—		—		—		—
Total Commercial and Industrial Loans	$	2,169	$	875	$	323	$	318	$	2	$	4,222	$	9,168	$	—	$	17,077
Consumer/Other Loans
A, B, or C	$	4,102	$	2,557	$	1,780	$	502	$	236	$	249	$	383	$	—	$	9,809
S		—		—		—		—		—		—		—		—		—
D		—		3		—		—		—		—		4		—		7
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	4,102	$	2,560	$	1,780	$	502	$	236	$	249	$	387	$	—	$	9,816

Schedule of company's nonaccrual loans

The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated (in thousands):

	March 31, 2026
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
Real estate, residential	$	344	$	164	$	508
Commercial and industrial		—		9		9
Total	$	344	$	173	$	517

	December 31, 2025
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
	No Allowance		with an Allowance		Loans
Real estate, residential	$	352	$	168	$	520
Commercial and industrial		—		13		13
Total	$	352	$	181	$	533

Schedule of accrued interest receivables

The following table represents the accrued interest receivables written off by reversing interest income during the three months ended March 31, 2026 and the year ended December 31, 2025 (in thousands):

	March 31, 2026		December 31, 2025
Real estate, residential	$	—	$	3
Total loans	$	—	$	3

Schedule of collateral-dependent loans

The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2026 and December 31, 2025 (in thousands):

	March 31, 2026		December 31, 2025
	Residential		Residential
	Properties		Properties
Real estate, residential	$	512	$	523
Commercial and industrial		9		13
Total loans	$	521	$	536

Schedule of disaggregates nonaccrual disclosures

The following tables further disaggregates nonaccrual disclosures by amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing as of March 31, 2026 and December 31, 2025 (in thousands). The Company defines vintage as the later of origination or restructure date:

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real estate, residential	$	—	$	—	$	167	$	—	$	—	$	341	$	—	$	—	$	508
Real estate, construction		—		—		—		—		—		—		—		—		—
Real estate, nonresidential		—		—		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		9		—		—		—		9
Consumer/Other		—		—		—		—		—		—		—		—		—
Total Loans on Nonaccrual	$	—	$	—	$	167	$	—	$	9	$	341	$	—	$	—	$	517

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
December 31, 2025:
Real estate, residential	$	—	$	167	$	—	$	—	$	274	$	79	$	—	$	—	$	520
Real estate, construction		—		—		—		—		—		—		—		—		—
Real estate, nonresidential		—		—		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		13		—		—		—		—		13
Consumer/Other		—		—		—		—		—		—		—		—		—
Total Loans on Nonaccrual	$	—	$	167	$	—	$	13	$	274	$	79	$	—	$	—	$	533

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Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2026

Allowance for Credit Losses

Schedule of allowance for credit losses on loans

Transactions in the allowance for credit losses for the three ended March 31, 2026 and 2025, and the balances of loans, individually and collectively evaluated for impairment, as of March 31, 2026 and 2025, are as follows (in thousands):

	Real Estate,		Real Estate,		Real Estate,		Commercial
	Residential		Construction		Nonresidential		and Industrial		Other		Total
Three months ended March 31, 2026
Allowance for credit losses
Beginning balance	$	759	$	183	$	1,729	$	108	$	160	$	2,939
Charge-offs		(1)		—		—		—		(56)		(57)
Recoveries		15		9		155		—		39		218
Net provision for credit losses		54		46		(145)		7		38		—
Ending Balance	$	827	$	238	$	1,739	$	115	$	181	$	3,100
Reserve for unfunded lending commitments
Beginning balance	$	2	$	9	$	12	$	15	$	22	$	60
Provision for losses on unfunded commitments		1		(1)		(1)		(3)		(4)		(8)
Ending balance-reserve for unfunded commitments	$	3	$	8	$	11	$	12	$	18	$	52
Total allowance for credit losses	$	830	$	246	$	1,750	$	127	$	199	$	3,152
Allowance for credit losses
Individually evaluated	$	80	$	—	$	—	$	9	$	7	$	96
Collectively evaluated		747		238		1,739		106		174		3,004
Total allowance for credit losses:	$	827	$	238	$	1,739	$	115	$	181	$	3,100
Reserve for unfunded lending commitments
Individually evaluated	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated		3		8		11		12		18		52
Reserve for unfunded lending commitments:		3		8		11		12		18		52
Total allowance for credit losses, March 31, 2026	$	830	$	246	$	1,750	$	127	$	199	$	3,152
Loans, Quarter ended March 31, 2026
Individually evaluated	$	1,070	$	130	$	636	$	9	$	7	$	1,852
Collectively evaluated		87,390		29,706		124,091		15,364		10,411		266,962
Total loans, March 31, 2026	$	88,460	$	29,836	$	124,727	$	15,373	$	10,418	$	268,814

	Real Estate,		Real Estate,		Real Estate,		Commercial
	Residential		Construction		Nonresidential		and Industrial		Other		Total
Three months ended March 31, 2025
Allowance for credit losses
Beginning balance	$	676	$	135	$	1,835	$	92	$	244	$	2,982
Charge-offs		—		—		—		—		(53)		(53)
Recoveries		2		9		1		—		28		40
Net provision for credit losses		50		(4)		(70)		(12)		36		—
Ending Balance	$	728	$	140	$	1,766	$	80	$	255	$	2,969
Reserve for unfunded lending commitments
Beginning balance	$	2	$	23	$	10	$	12	$	36	$	83
Provision for losses on unfunded commitments		1		(3)		1		3		(7)		(5)
Ending balance-reserve for unfunded commitments	$	3	$	20	$	11	$	15	$	29	$	78
Total allowance for credit losses	$	731	$	160	$	1,777	$	95	$	284	$	3,047
Allowance for credit losses
Individually evaluated	$	42	$	—	$	—	$	—	$	9	$	51
Collectively evaluated		686		140		1,766		80		246		2,918
Total allowance for credit losses:	$	728	$	140	$	1,766	$	80	$	255	$	2,969
Reserve for unfunded lending commitments
Individually evaluated	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated		3		20		11		15		29		78
Reserve for unfunded lending commitments:		3		20		11		15		29		78
Total allowance for credit losses, March 31, 2025	$	731	$	160	$	1,777	$	95	$	284	$	3,047
Loans, Quarter ended March 31, 2025
Individually evaluated	$	936	$	261	$	470	$	21	$	9	$	1,697
Collectively evaluated		79,427		17,277		110,044		12,338		10,862		229,948
Total loans, March 31, 2025	$	80,363	$	17,538	$	110,514	$	12,359	$	10,871	$	231,645

Schedule of gross charge-off disclosures by amortized cost by credit quality indicator

The following table further disaggregates gross charge-off disclosures by amortized cost by credit quality indicator, class, and year of origination for the three month periods ended March 31, 2026 and March 31, 2025 (in thousands). The Company defines vintage as the later of origination or restructure date.

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2026		2025		2024		2023		2022		Prior		Loans		Term Loans		Total
March 31, 2026:
Real estate, residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
A,B, or C		—		—		—		—		—		—		—		—		—
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		—		1		—		—		1
F		—		—		—		—		—		—		—		—		—
Total Real estate, nonresidential loans	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1
Consumer/Other
A,B, or C	$	55	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	56
S		—		—		—		—		—		—		—		—		—
D		—		—		—		—		—		—		—		—		—
E		—		—		—		—		—		—		—		—		—
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	55	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	56
Total Gross Loan Chargeoffs:	$	55	$	1	$	—	$	—	$	—	$	1	$	—	$	—	$	57

	Term Loans														Revolving
	Amortized Cost Basis by Origination Year														Loans
													Revolving		Converted to
	2025		2024		2023		2022		2021		Prior		Loans		Term Loans		Total
March 31, 2025:
Consumer/Other
A,B, or C	$	48	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	48
S		—		—		—		—		—		—		—		—		—
D		—		2		—		—		—		—		—		—		2
E		—		3		—		—		—		—		—		—		3
F		—		—		—		—		—		—		—		—		—
Total Consumer/Other Loans	$	48	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	53
Total Gross Loan Chargeoffs:	$	48	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	53

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Shareholders Equity (Tables)

3 Months Ended

Mar. 31, 2026

Shareholders' Equity

Schedule of components of accumulated other comprehensive income, net of tax

	March 31, 2026		December 31, 2025
Beginning balance accumulated other comprehensive (loss) income	$	(28,470)	$	(36,887)
Net unrealized gain (loss) on available for sale securities, net of tax		(718)		9,077
(Loss) gain from unfunded post-retirement benefit obligation, net of tax		—		(660)
Ending balance accumulated other comprehensive (loss)income	$	(29,188)	$	(28,470)

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Fair Value Measurements and Disclosures (Tables)

3 Months Ended

Mar. 31, 2026

Fair Value Measurements and Disclosures

Schedule of assets measured at fair value on a recurring basis

The balances of available for sale securities, which are the only assets measured at fair value on a recurring basis, by level within the fair value hierarchy and by investment type, as of March 31, 2026 and December 31, 2025, were as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2		Level 3
March 31, 2026:
U.S. Treasuries	$	144,537	$	—	$	144,537	$	—
Mortgage-backed securities		38,976		—		38,976		—
Collateralized mortgage obligations		55,722		—		55,722		—
States and political subdivisions		84,308		—		84,308		—
Total	$	323,543	$	—	$	323,543	$	—
December 31, 2025:
U.S. Treasuries	$	115,530	$	—	$	115,530	$	—
Mortgage-backed securities		39,832		—		39,832		—
Collateralized mortgage obligations		57,829		—		57,829		—
States and political subdivisions		84,925		—		84,925		—
Total	$	298,116	$	—	$	298,116	$	—

Collateral dependent loans, measured at fair value on a non-recurring basis

Collateral dependent loans, which are measured at fair value on a non-recurring basis, by level within the fair value hierarchy as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2		Level 3
March 31, 2026	$	—	$	—	$	—	$	—
December 31, 2025	$	—	$	—	$	—	$	—

Schedule of changes in the fair value of other real estate

The following table presents a summary of changes in the fair value of other real estate which is measured using Level 3 inputs (in thousands):

	March 31, 2026		December 31, 2025
Balance, beginning of year	$	—	$	9
Loans transferred to ORE		—		266
Sales		—		(266)
Write-downs		—		—
Chargeoffs		—		(9)
Balance, end of year	$	—	$	—

Schedule of carrying value and estimated fair value of financial instruments

The carrying value and estimated fair value of financial instruments, by level within the fair value hierarchy, at March 31, 2026 and December 31, 2025 are as follows (in thousands):

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
March 31, 2026:
Financial Assets:
Cash and due from banks	$	57,386	$	57,386	$	—	$	—	$	57,386
Available for sale securities		323,543		—		323,543		—		323,543
Held to maturity securities, net		83,992		—		75,003		—		75,003
Loans, net		265,714		—		—		265,053		265,053
Financial Liabilities:
Deposits:
Non-interest bearing		187,743		187,743		—		—		187,743
Interest bearing		441,001		—		—		403,926		403,926
Time deposits		37,445		—		—		36,987		36,987

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2025:
Financial Assets:
Cash and due from banks	$	19,581	$	19,581	$	—	$	—	$	19,581
Available for sale securities		298,116		—		298,116		—		298,116
Held to maturity securities, net		91,052		—		82,435		—		82,435
Loans, net		260,767		—		—		259,500		259,500
Financial Liabilities:
Deposits:
Non-interest bearing		172,909		172,909		—		—		172,909
Interest bearing		393,934		—		—		358,151		358,151
Time deposits		37,586		—		—		37,128		37,128
Borrowings from Federal Home Loan Bank		800		—		800		—		800

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2026

Income Taxes

Schedule of deferred tax assets and liabilities

Deferred taxes (or deferred charges) as of March 31, 2026 and December 31, 2025, included in other assets, were as follows (in thousands):

	March 31, 2026		December 31, 2025
Deferred tax assets:
Allowance for credit losses	$	825	$	783
Employee benefit plans' liabilities		4,020		4,028
Unrealized loss on available for sale securities, charged from equity		6,507		6,268
Loss on credit impairment of securities		423		423
Earned retiree health benefits plan liability		1,172		1,172
General business and AMT credits		17		17
State income tax net operating loss carryforward		705		771
Other		132		126
Valuation allowance		(423)		(423)
Deferred tax assets		13,378		13,165
Deferred tax liabilities:
Unearned retiree health benefits plan asset		240		240
Bank premises and equipment		1,812		1,883
Deferred tax liabilities		2,052		2,123
Net deferred taxes	$	11,326	$	11,042

Schedule of components of income tax

Income taxes consist of the following components (in thousands):

	Three Months Ended March 31,
	2026		2025
Current:
Federal	$	447	$	258
State		—		—
Total current		447		258
Deferred:
Federal		(125)		46
State		80		71
Change in valuation allowance		—		—
Total deferred		(45)		117
Totals	$	402	$	375

Schedule of effective income tax rate reconciliation

	Three Months Ended March 31,
	2026				2025
	Tax		Rate		Tax		Rate
Taxes computed at statutory rate	$	388	21	%	$	354	21	%
Increase (decrease) resulting from:
State income tax expense, net of federal effect		64	3			57	3
Tax -exempt interest income		(38)	(2)			(42)	(3)
Income from BOLI		(27)	(1)			(25)	(1)
Tefra disallowance		15	1			14	1
Federal tax credits		-	-			(2)	(0)
Other		-	-			19	1
Other changes in valuation allowance		-	-			-	-
Total income tax (benefit) expense	$	402	22	%	$	375	22	%

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Earnings Per Share (Details) - shares	3 Months Ended		12 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Earnings Per Share
Weighted average shares of common stock outstanding	4,617,466	4,617,466
Dilutive shares	0		0

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Statements of Cash Flows (Details) - USD ($)	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Statements of Cash Flows
Interest paid on deposits and borrowings	$ 1,843,624	$ 1,888,799
Income tax paid	$ 0	$ 0
Number of loans were transferred to other real estate	0	0

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Investments (Details)	3 Months Ended
	Mar. 31, 2026 USD ($) item	Mar. 31, 2025 USD ($)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)
Investments
Held to maturity securities, allowance for credit loss	$ 31,000	$ 40,000	$ 31,000	$ 40,000
Impairment reversal	0
Held to maturity securities, net	84,023,000		91,083,000
Held-to-maturity classified as nonaccrual	0		0
Proceeds from sale of debt securities	0	$ 0
Financial asset, 30 to 59 Days Past Due
Investments
Held to maturity securities, net	0		0
U.S. Treasuries
Investments
Held to maturity securities, net	$ 9,992,000		14,990,000
Number of positions in unrealized loss | item	19
Number of investments in securities | item	21
Mortgage-backed securities
Investments
Number of positions in unrealized loss | item	39
Number of investments in securities | item	46
Collateralized mortgage obligations
Investments
Number of positions in unrealized loss | item	19
Number of investments in securities | item	26
States and political subdivisions
Investments
Held to maturity securities, allowance for credit loss	$ 31,000		31,000
Held to maturity securities, net	$ 74,031,000		76,093,000
Number of positions in unrealized loss | item	75
Number of investments in securities | item	75
Asset Pledged as Collateral | Public Deposits, Federal Funds Purchased and Other Balances Required by Law
Investments
Fair value of securities	$ 337,660,216		262,193,802
Cumulative Effect, Period of Adoption, Adjusted Balance
Investments
Held to maturity securities, allowance for credit loss			$ 31,000

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Investments - Available for sale securities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Investments
Available for sale securities, amortized cost	$ 349,623	$ 323,240
Available for sale securities, gross unrealized gains	234	233
Available for sale securities, gross unrealized losses	(26,314)	(25,357)
Available for sale securities, fair value	323,543	298,116
U.S. Treasuries
Investments
Available for sale securities, amortized cost	148,654	119,363
Available for sale securities, gross unrealized gains	15	74
Available for sale securities, gross unrealized losses	(4,132)	(3,907)
Available for sale securities, fair value	144,537	115,530
Mortgage-backed securities
Investments
Available for sale securities, amortized cost	41,858	42,656
Available for sale securities, gross unrealized gains	147	134
Available for sale securities, gross unrealized losses	(3,029)	(2,958)
Available for sale securities, fair value	38,976	39,832
Collateralized mortgage obligations
Investments
Available for sale securities, amortized cost	59,278	61,282
Available for sale securities, gross unrealized gains	72	25
Available for sale securities, gross unrealized losses	(3,628)	(3,478)
Available for sale securities, fair value	55,722	57,829
States and political subdivisions
Investments
Available for sale securities, amortized cost	99,833	99,939
Available for sale securities, gross unrealized losses	(15,525)	(15,014)
Available for sale securities, fair value	$ 84,308	$ 84,925

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Investments - Held to maturity securities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025	Dec. 31, 2024
Investments
Held to maturity securities, amortized cost	$ 84,023	$ 91,083
Held to maturity securities, gross unrealized gains	11	21
Held to maturity securities, gross unrealized losses	(9,031)	(8,669)
Held to maturity securities, fair value	75,003	82,435
Held to maturity securities, allowance for credit losses	(31)	(31)	$ (40)	$ (40)
Held to maturity securities, net	83,992	91,052
U.S. Treasuries
Investments
Held to maturity securities, amortized cost	9,992	14,990
Held to maturity securities, gross unrealized gains		10
Held to maturity securities, gross unrealized losses	(125)	(104)
Held to maturity securities, fair value	9,867	14,896
Held to maturity securities, net	9,992	14,990
States and political subdivisions
Investments
Held to maturity securities, amortized cost	74,031	76,093
Held to maturity securities, gross unrealized gains	11	11
Held to maturity securities, gross unrealized losses	(8,906)	(8,565)
Held to maturity securities, fair value	65,136	67,539
Held to maturity securities, allowance for credit losses	(31)	(31)
Held to maturity securities, net	$ 74,000	$ 76,062

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Investments - Allowance for credit losses on held to maturity securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Investments
Balance	$ 40
Provision for credit losses	0
Charge-offs of securities	0
Recoveries	0
Balance	$ 40

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Investments - Credit quality indicator (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Investments
Held to maturity securities, net	$ 84,023	$ 91,083
Aa1/Aa2/Aa3
Investments
Held to maturity securities, net	37,940	44,503
A1/A2
Investments
Held to maturity securities, net	3,123	3,131
Baa1/Baa2
Investments
Held to maturity securities, net	1,000	1,000
Not rated
Investments
Held to maturity securities, net	$ 41,960	$ 42,449

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Investments - Amortized cost and fair value of debt securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Investments
Available for sale securities, due in one year or less, amortized cost	$ 69,011
Available for sale securities, due in one year or less, fair value	68,954
Available for sale securities, due after one year through five years, amortized cost	97,285
Available for sale securities, due after one year through five years, fair value	91,853
Available for sale securities, due after five years through ten years, amortized cost	50,905
Available for sale securities, due after five years through ten years, fair value	43,226
Available for sale securities, due after ten years, amortized cost	31,286
Available for sale securities, due after ten years, fair value	24,812
Available-for-sale, maturity, without single maturity date, amortized cost	59,278
Available-for-sale, maturity, without single maturity date, fair value	55,722
Available for sale securities, amortized cost	349,623	$ 323,240
Available for sale securities, fair value	323,543	298,116
Held to maturity securities, due in one year or less, amortized cost	2,200
Held to maturity securities, due in one year or less, fair value	2,191
Held to maturity securities, due after one year through five years, amortized cost	39,052
Held to maturity securities, due after one year through five years, fair value	37,506
Held to maturity securities, due after five years through ten years, amortized cost	29,428
Held to maturity securities, due after five years through ten years, fair value	25,519
Held to maturity securities, due after ten years, amortized cost	13,343
Held to maturity securities, due after ten years, fair value	9,787
Held to maturity securities, amortized cost	84,023	91,083
Held to maturity securities, fair value	75,003	82,435
Mortgage-backed securities
Investments
Available-for-sale, maturity, without single maturity date, amortized cost	41,858
Available-for-sale, maturity, without single maturity date, fair value	38,976
Available for sale securities, amortized cost	41,858	42,656
Available for sale securities, fair value	$ 38,976	$ 39,832

XML

Investments - Available for Sale and Held to Maturity Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Investments
Less Than Twelve Months, Fair Value	$ 67,628	$ 19,002
Less Than Twelve Months, Gross Unrealized Losses	127	208
Over Twelve Months, Fair Value	218,370	216,948
Over Twelve Months, Gross Unrealized Losses	26,187	25,149
Total, Fair Value	285,998	235,950
Total, Gross Unrealized Losses	26,314	25,357
U.S. Treasuries
Investments
Less Than Twelve Months, Fair Value	63,904	4,987
Less Than Twelve Months, Gross Unrealized Losses	100	2
Over Twelve Months, Fair Value	70,619	70,701
Over Twelve Months, Gross Unrealized Losses	4,032	3,905
Total, Fair Value	134,523	75,688
Total, Gross Unrealized Losses	4,132	3,907
Mortgage-backed securities
Investments
Over Twelve Months, Fair Value	27,655	28,344
Over Twelve Months, Gross Unrealized Losses	3,029	2,958
Total, Fair Value	27,655	28,344
Total, Gross Unrealized Losses	3,029	2,958
Collateralized mortgage obligations
Investments
Less Than Twelve Months, Fair Value	3,724	12,182
Less Than Twelve Months, Gross Unrealized Losses	27	29
Over Twelve Months, Fair Value	35,788	34,811
Over Twelve Months, Gross Unrealized Losses	3,601	3,449
Total, Fair Value	39,512	46,993
Total, Gross Unrealized Losses	3,628	3,478
States and political subdivisions
Investments
Less Than Twelve Months, Fair Value		1,833
Less Than Twelve Months, Gross Unrealized Losses		177
Over Twelve Months, Fair Value	84,308	83,092
Over Twelve Months, Gross Unrealized Losses	15,525	14,837
Total, Fair Value	84,308	84,925
Total, Gross Unrealized Losses	$ 15,525	$ 15,014

XML

Loans (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2026 USD ($) loan	Dec. 31, 2025 USD ($) loan
Loans
Interest income on nonaccrual loans | $	$ 0	$ 0
Number of financing receivables modified | loan	0	0

XML

Loans - Composition of loan portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025
Loans
Loans	$ 268,814	$ 263,706	$ 231,645
Real estate, residential
Loans
Loans	88,460	86,980	80,363
Real estate, construction
Loans
Loans	29,836	24,990	17,538
Real estate, nonresidential
Loans
Loans	124,727	124,843	110,514
Commercial and industrial
Loans
Loans	15,373	17,077	12,359
Other
Loans
Loans	$ 10,418	$ 9,816	$ 10,871

XML

Loans - Age analysis of the loan portfolio, segregated by class of loans (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025
Loans
Loans	$ 268,814	$ 263,706	$ 231,645
Real estate, residential
Loans
Loans	88,460	86,980	80,363
Real estate, construction
Loans
Loans	29,836	24,990	17,538
Real estate, nonresidential
Loans
Loans	124,727	124,843	110,514
Commercial and industrial
Loans
Loans	15,373	17,077	12,359
Other
Loans
Loans	10,418	9,816	$ 10,871
Financial asset, 30 to 59 Days Past Due
Loans
Loans	962	641
Financial asset, 30 to 59 Days Past Due | Real estate, residential
Loans
Loans	475	398
Financial asset, 30 to 59 Days Past Due | Real estate, construction
Loans
Loans	123	115
Financial asset, 30 to 59 Days Past Due | Real estate, nonresidential
Loans
Loans	322	104
Financial asset, 30 to 59 Days Past Due | Commercial and industrial
Loans
Loans	9
Financial asset, 30 to 59 Days Past Due | Other
Loans
Loans	33	24
Financial asset, 60 to 89 Days Past Due
Loans
Loans	4	1,108
Financial asset, 60 to 89 Days Past Due | Real estate, residential
Loans
Loans		274
Financial asset, 60 to 89 Days Past Due | Real estate, nonresidential
Loans
Loans	4	188
Financial asset, 60 to 89 Days Past Due | Commercial and industrial
Loans
Loans		385
Financial asset, 60 to 89 Days Past Due | Other
Loans
Loans		261
Financial asset, Greater than 90 Days Past Due
Loans
Loans	331	30
Financial asset, Greater than 90 Days Past Due | Real estate, residential
Loans
Loans	331	17
Financial asset, Greater than 90 Days Past Due | Commercial and industrial
Loans
Loans		13
Financial asset, Past Due
Loans
Loans	1,297	1,779
Financial asset, Past Due | Real estate, residential
Loans
Loans	806	689
Financial asset, Past Due | Real estate, construction
Loans
Loans	123	115
Financial asset, Past Due | Real estate, nonresidential
Loans
Loans	326	292
Financial asset, Past Due | Commercial and industrial
Loans
Loans	9	398
Financial asset, Past Due | Other
Loans
Loans	33	285
Financial asset, Not Past Due
Loans
Loans	267,517	261,927
Financial asset, Not Past Due | Real estate, residential
Loans
Loans	87,654	86,291
Financial asset, Not Past Due | Real estate, construction
Loans
Loans	29,713	24,875
Financial asset, Not Past Due | Real estate, nonresidential
Loans
Loans	124,401	124,551
Financial asset, Not Past Due | Commercial and industrial
Loans
Loans	15,364	16,679
Financial asset, Not Past Due | Other
Loans
Loans	$ 10,385	$ 9,531

XML

Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025
Loans
Total	$ 268,814	$ 263,706	$ 231,645
Real Estate, Residential Loans
Loans
Year 1	2,650	12,886
Year 2	12,586	10,227
Year 3	11,005	12,735
Year 4	13,047	12,435
Year 5	12,151	9,492
Prior	30,394	21,646
Revolving Loans	5,305	4,577
Revolving Loans Converted to Term Loans	1,322	2,982
Total	88,460	86,980	80,363
Real Estate, Residential Loans | A, B, or C
Loans
Year 1	2,650	12,886
Year 2	12,586	10,060
Year 3	10,839	12,735
Year 4	13,047	12,435
Year 5	12,151	9,218
Prior	29,504	21,004
Revolving Loans	5,246	4,519
Revolving Loans Converted to Term Loans	1,322	2,982
Total	87,345	85,839
Real Estate, Residential Loans | S
Loans
Prior	45	49
Total	45	49
Real Estate, Residential Loans | D
Loans
Prior	503	514
Revolving Loans	59	58
Total	562	572
Real Estate, Residential Loans | E
Loans
Year 2		167
Year 3	166
Year 5		274
Prior	342	79
Total	508	520
Real Estate, Construction Loans
Loans
Year 1	1,354	1,395
Year 2	1,288	2,662
Year 3	2,539	436
Year 4	420	1,309
Year 5	1,252	1,770
Prior	5,174	3,515
Revolving Loans	17,809	13,903
Total	29,836	24,990	17,538
Real Estate, Construction Loans | A, B, or C
Loans
Year 1	1,354	1,395
Year 2	1,288	2,662
Year 3	2,539	319
Year 4	420	1,309
Year 5	1,252	1,770
Prior	5,044	3,382
Revolving Loans	17,809	13,903
Total	29,706	24,740
Real Estate, Construction Loans | D
Loans
Year 3		117
Prior	130	133
Total	130	250
Real Estate, Nonresidential Loans
Loans
Year 1	497	16,627
Year 2	16,587	2,518
Year 3	2,492	10,432
Year 4	10,299	19,922
Year 5	17,453	9,473
Prior	48,155	42,446
Revolving Loans	29,244	23,425
Total	124,727	124,843	110,514
Real Estate, Nonresidential Loans | A, B, or C
Loans
Year 1	497	16,627
Year 2	16,587	2,518
Year 3	2,492	10,432
Year 4	10,299	19,922
Year 5	17,453	9,473
Prior	47,474	41,933
Revolving Loans	29,244	23,425
Total	124,046	124,330
Real Estate, Nonresidential Loans | S
Loans
Prior	45	48
Total	45	48
Real Estate, Nonresidential Loans | D
Loans
Prior	636	465
Total	636	465
Commercial and industrial
Loans
Year 1	139	2,169
Year 2	1,911	875
Year 3	820	323
Year 4	403	318
Year 5	291	2
Prior	4,157	4,222
Revolving Loans	7,652	9,168
Total	15,373	17,077	12,359
Commercial and industrial | A, B, or C
Loans
Year 1	139	2,169
Year 2	1,911	875
Year 3	820	323
Year 4	403	305
Year 5	282	2
Prior	4,157	4,222
Revolving Loans	7,652	9,168
Total	15,364	17,064
Commercial and industrial | E
Loans
Year 4		13
Year 5	9
Total	9	13
Consumer/Other Loans
Loans
Year 1	1,409	4,102
Year 2	3,734	2,560
Year 3	2,373	1,780
Year 4	1,600	502
Year 5	457	236
Prior	448	249
Revolving Loans	397	387
Total	10,418	9,816	$ 10,871
Consumer/Other Loans | A, B, or C
Loans
Year 1	1,409	4,102
Year 2	3,734	2,557
Year 3	2,370	1,780
Year 4	1,600	502
Year 5	457	236
Prior	448	249
Revolving Loans	393	383
Total	10,411	9,809
Consumer/Other Loans | D
Loans
Year 2		3
Year 3	3
Revolving Loans	4	4
Total	$ 7	$ 7

XML

Loans - Total loans on nonaccrual (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Loans
Nonaccrual Loans with No Allowance	$ 344	$ 352
Nonaccrual Loans with an Allowance	173	181
Total Nonaccrual Loans	517	533
Real estate, residential
Loans
Nonaccrual Loans with No Allowance	344	352
Nonaccrual Loans with an Allowance	164	168
Total Nonaccrual Loans	508	520
Commercial and industrial
Loans
Nonaccrual Loans with an Allowance	9	13
Total Nonaccrual Loans	$ 9	$ 13

XML

Loans - Accrued interest receivables written off (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2025 USD ($)
Loans
Accrued interest receivables written off	$ 3
Real estate, residential
Loans
Accrued interest receivables written off	$ 3

XML

Loans - Collateral-dependent loans (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025
Loans
Loans	$ 268,814	$ 263,706	$ 231,645
Collateral Pledged
Loans
Loans	521	536
Real estate, residential
Loans
Loans	88,460	86,980	80,363
Real estate, residential | Residential Properties
Loans
Loans	512	523
Real estate, nonresidential
Loans
Loans	124,727	124,843	$ 110,514
Commercial and industrial | Commercial
Loans
Loans	$ 9	$ 13

XML

Loans - Nonaccrual Loans By Class and Vintage (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
2025/2024
Loans
Total Nonaccrual Loans		$ 167
2025/2024 | Real estate, residential
Loans
Total Nonaccrual Loans		167
2024/2023
Loans
Total Nonaccrual Loans	$ 167
2024/2023 | Real estate, residential
Loans
Total Nonaccrual Loans	167
2023/2022
Loans
Total Nonaccrual Loans		13
2023/2022 | Commercial and industrial
Loans
Total Nonaccrual Loans		13
2022/2021
Loans
Total Nonaccrual Loans	9	274
2022/2021 | Real estate, residential
Loans
Total Nonaccrual Loans		274
2022/2021 | Commercial and industrial
Loans
Total Nonaccrual Loans	9
Prior
Loans
Total Nonaccrual Loans	341	79
Prior | Real estate, residential
Loans
Total Nonaccrual Loans	341	79
Total
Loans
Total Nonaccrual Loans	517	533
Total | Real estate, residential
Loans
Total Nonaccrual Loans	508	520
Total | Commercial and industrial
Loans
Total Nonaccrual Loans	$ 9	$ 13

XML

Allowance for Credit Losses - Allowance for credit loss on loans and leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Allowance for Credit Losses
Beginning balance	$ 2,939	$ 2,982
Charge-offs	(57)	(53)
Recoveries	218	40
Net provision for credit losses	0	0
Ending Balance	3,100	2,969
Provision for losses on unfunded commitments	(8)	(5)
Total allowance for credit losses	3,100	3,047
Individually evaluated	96	51
Collectively evaluated	3,004	2,918
Individually evaluated	1,852	1,697
Collectively evaluated	266,962	229,948
Total	268,814	231,645	$ 263,706
Reserve for unfunded lending commitments
Allowance for Credit Losses
Beginning balance	60	83
Ending Balance	52	78
Provision for losses on unfunded commitments	(8)	(5)
Total allowance for credit losses	3,152	3,047
Individually evaluated	0	0
Collectively evaluated	52	78
Real estate, residential
Allowance for Credit Losses
Beginning balance	759	676
Charge-offs	(1)	0
Recoveries	15	2
Net provision for credit losses	54	50
Ending Balance	827	728
Total allowance for credit losses	827	731
Individually evaluated	80	42
Collectively evaluated	747	686
Individually evaluated	1,070	936
Collectively evaluated	87,390	79,427
Total	88,460	80,363	86,980
Real estate, residential | Reserve for unfunded lending commitments
Allowance for Credit Losses
Beginning balance	2	2
Ending Balance	3	3
Provision for losses on unfunded commitments	1	1
Total allowance for credit losses	830	731
Individually evaluated	0	0
Collectively evaluated	3	3
Real estate, construction
Allowance for Credit Losses
Beginning balance	183	135
Charge-offs	0	0
Recoveries	9	9
Net provision for credit losses	46	(4)
Ending Balance	238	140
Total allowance for credit losses	238	160
Individually evaluated	0	0
Collectively evaluated	238	140
Individually evaluated	130	261
Collectively evaluated	29,706	17,277
Total	29,836	17,538	24,990
Real estate, construction | Reserve for unfunded lending commitments
Allowance for Credit Losses
Beginning balance	9	23
Ending Balance	8	20
Provision for losses on unfunded commitments	(1)	(3)
Total allowance for credit losses	246	160
Individually evaluated	0	0
Collectively evaluated	8	20
Real estate, nonresidential
Allowance for Credit Losses
Beginning balance	1,729	1,835
Charge-offs	0	0
Recoveries	155	1
Net provision for credit losses	(145)	(70)
Ending Balance	1,739	1,766
Total allowance for credit losses	1,739	1,777
Individually evaluated	0	0
Collectively evaluated	1,739	1,766
Individually evaluated	636	470
Collectively evaluated	124,091	110,044
Total	124,727	110,514	124,843
Real estate, nonresidential | Reserve for unfunded lending commitments
Allowance for Credit Losses
Beginning balance	12	10
Ending Balance	11	11
Provision for losses on unfunded commitments	(1)	1
Total allowance for credit losses	1,750	1,777
Individually evaluated	0	0
Collectively evaluated	11	11
Commercial and industrial
Allowance for Credit Losses
Beginning balance	108	92
Charge-offs	0	0
Recoveries	0	0
Net provision for credit losses	7	(12)
Ending Balance	115	80
Total allowance for credit losses	115	95
Individually evaluated	9	0
Collectively evaluated	106	80
Individually evaluated	9	21
Collectively evaluated	15,364	12,338
Total	15,373	12,359	17,077
Commercial and industrial | Reserve for unfunded lending commitments
Allowance for Credit Losses
Beginning balance	15	12
Ending Balance	12	15
Provision for losses on unfunded commitments	(3)	3
Total allowance for credit losses	127	95
Individually evaluated	0	0
Collectively evaluated	12	15
Other
Allowance for Credit Losses
Beginning balance	160	244
Charge-offs	(56)	(53)
Recoveries	39	28
Net provision for credit losses	38	36
Ending Balance	181	255
Total allowance for credit losses	181	284
Individually evaluated	7	9
Collectively evaluated	174	246
Individually evaluated	7	9
Collectively evaluated	10,411	10,862
Total	10,418	10,871	$ 9,816
Other | Reserve for unfunded lending commitments
Allowance for Credit Losses
Beginning balance	22	36
Ending Balance	18	29
Provision for losses on unfunded commitments	(4)	(7)
Total allowance for credit losses	199	284
Individually evaluated	0	0
Collectively evaluated	$ 18	$ 29

XML

Allowance for Credit Losses - Credit quality indicator write-offs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Allowance for Credit Losses
Total	$ 57	$ 53
Internally Rated
Allowance for Credit Losses
Year 1	55	48
Year 2	1	5
Year 3	0	0
Year 4	0	0
Year 5	0	0
Prior	1	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total	57	53
Real estate, residential
Allowance for Credit Losses
Total	1	0
Commercial and industrial
Allowance for Credit Losses
Total	0	0
Consumer/Other | A, B, or C
Allowance for Credit Losses
Year 1	55	48
Year 2	1	0
Year 3	0	0
Year 4	0	0
Year 5	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total	56	48
Consumer/Other | S
Allowance for Credit Losses
Year 1	0	0
Year 2	0	0
Year 3	0	0
Year 4	0	0
Year 5	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total	0	0
Consumer/Other | D
Allowance for Credit Losses
Year 1	0	0
Year 2	0	2
Year 3	0	0
Year 4	0	0
Year 5	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total	0	2
Consumer/Other | E
Allowance for Credit Losses
Year 1	0	0
Year 2	0	3
Year 3	0	0
Year 4	0	0
Year 5	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total	0	3
Consumer/Other | F
Allowance for Credit Losses
Year 1	0	0
Year 2	0	0
Year 3	0	0
Year 4	0	0
Year 5	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total	0	0
Consumer/Other | Internally Rated
Allowance for Credit Losses
Year 1	55	48
Year 2	1	5
Year 3	0	0
Year 4	0	0
Year 5	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total	56	53
Real estate, nonresidential
Allowance for Credit Losses
Year 1	0
Year 2	0
Year 3	0
Year 4	0
Year 5	0
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term Loans	0
Total	0	$ 0
Real estate, nonresidential | A, B, or C
Allowance for Credit Losses
Year 1	0
Year 2	0
Year 3	0
Year 4	0
Year 5	0
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term Loans	0
Total	0
Real estate, nonresidential | S
Allowance for Credit Losses
Year 1	0
Year 2	0
Year 3	0
Year 4	0
Year 5	0
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term Loans	0
Total	0
Real estate, nonresidential | D
Allowance for Credit Losses
Year 1	0
Year 2	0
Year 3	0
Year 4	0
Year 5	0
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term Loans	0
Total	0
Real estate, nonresidential | E
Allowance for Credit Losses
Year 1	0
Year 2	0
Year 3	0
Year 4	0
Year 5	0
Prior	1
Revolving Loans	0
Revolving Loans Converted to Term Loans	0
Total	1
Real estate, nonresidential | F
Allowance for Credit Losses
Year 1	0
Year 2	0
Year 3	0
Year 4	0
Year 5	0
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term Loans	0
Total	0
Real estate, nonresidential | Internally Rated
Allowance for Credit Losses
Year 1	0
Year 2	0
Year 3	0
Year 4	0
Year 5	0
Prior	1
Revolving Loans	0
Revolving Loans Converted to Term Loans	0
Total	$ 1

XML

Shareholders' Equity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Shareholders' Equity
Dividends declared (in dollars per share)	$ 0	$ 0

XML

Shareholders' Equity - Components of accumulated other comprehensive income, net of tax (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Shareholders' Equity
Beginning balance accumulated other comprehensive (loss) income	$ (28,470)	$ (36,887)	$ (36,887)
Net unrealized gain (loss) on available for sale securities, net of tax	(718)	$ 3,144	9,077
(Loss) gain from unfunded post-retirement benefit obligation, net of tax			(660)
Ending balance accumulated other comprehensive (loss)income	$ (29,188)		$ (28,470)

XML

Fair Value Measurements and Disclosures - Assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Fair Value Measurements and Disclosures
Available for sale securities	$ 323,543	$ 298,116
Level 1
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Level 2
Fair Value Measurements and Disclosures
Available for sale securities	323,543	298,116
Level 3
Fair Value Measurements and Disclosures
Available for sale securities	0	0
U.S. Treasuries
Fair Value Measurements and Disclosures
Available for sale securities	144,537	115,530
Mortgage-backed securities
Fair Value Measurements and Disclosures
Available for sale securities	38,976	39,832
Collateralized mortgage obligations
Fair Value Measurements and Disclosures
Available for sale securities	55,722	57,829
States and political subdivisions
Fair Value Measurements and Disclosures
Available for sale securities	84,308	84,925
Recurring
Fair Value Measurements and Disclosures
Available for sale securities	323,543	298,116
Recurring | Level 1
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | Level 2
Fair Value Measurements and Disclosures
Available for sale securities	323,543	298,116
Recurring | Level 3
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | U.S. Treasuries
Fair Value Measurements and Disclosures
Available for sale securities	144,537	115,530
Recurring | U.S. Treasuries | Level 1
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | U.S. Treasuries | Level 2
Fair Value Measurements and Disclosures
Available for sale securities	144,537	115,530
Recurring | U.S. Treasuries | Level 3
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | Mortgage-backed securities
Fair Value Measurements and Disclosures
Available for sale securities	38,976	39,832
Recurring | Mortgage-backed securities | Level 1
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | Mortgage-backed securities | Level 2
Fair Value Measurements and Disclosures
Available for sale securities	38,976	39,832
Recurring | Mortgage-backed securities | Level 3
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | Collateralized mortgage obligations
Fair Value Measurements and Disclosures
Available for sale securities	55,722	57,829
Recurring | Collateralized mortgage obligations | Level 1
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | Collateralized mortgage obligations | Level 2
Fair Value Measurements and Disclosures
Available for sale securities	55,722	57,829
Recurring | Collateralized mortgage obligations | Level 3
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | States and political subdivisions
Fair Value Measurements and Disclosures
Available for sale securities	84,308	84,925
Recurring | States and political subdivisions | Level 1
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Recurring | States and political subdivisions | Level 2
Fair Value Measurements and Disclosures
Available for sale securities	84,308	84,925
Recurring | States and political subdivisions | Level 3
Fair Value Measurements and Disclosures
Available for sale securities	0	0
Nonrecurring
Fair Value Measurements and Disclosures
Impaired loans, fair value	0	0
Nonrecurring | Level 1
Fair Value Measurements and Disclosures
Impaired loans, fair value	0	0
Nonrecurring | Level 2
Fair Value Measurements and Disclosures
Impaired loans, fair value	0	0
Nonrecurring | Level 3
Fair Value Measurements and Disclosures
Impaired loans, fair value	$ 0	$ 0

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Fair Value Measurements and Disclosures - Change in fair value of other real estate (Details) - Other real estate $ in Thousands	12 Months Ended
	Dec. 31, 2025 USD ($)
Fair Value, Assets Measured on Nonrecurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of year	$ 9
Loans transferred to ORE	266
Sales	(266)
Chargeoffs	$ (9)

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Fair Value Measurements and Disclosures - Carrying value and estimated fair value of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Fair Value Measurements and Disclosures
Cash and due from banks	$ 57,386	$ 19,581
Available for sale securities	323,543	298,116
Held to maturity securities, net	75,003	82,435
Loans, net	265,053	259,500
Non-interest bearing	187,743	172,909
Interest bearing	403,926	358,151
Time deposits	36,987	37,128
Borrowings from Federal Home Loan Bank		800
Level 1
Fair Value Measurements and Disclosures
Cash and due from banks	57,386	19,581
Available for sale securities	0	0
Held to maturity securities, net	0	0
Loans, net	0	0
Non-interest bearing	187,743	172,909
Interest bearing	0	0
Time deposits	0	0
Borrowings from Federal Home Loan Bank		0
Level 2
Fair Value Measurements and Disclosures
Cash and due from banks	0	0
Available for sale securities	323,543	298,116
Held to maturity securities, net	75,003	82,435
Loans, net	0	0
Non-interest bearing	0	0
Interest bearing	0	0
Time deposits	0	0
Borrowings from Federal Home Loan Bank		800
Level 3
Fair Value Measurements and Disclosures
Cash and due from banks	0	0
Available for sale securities	0	0
Held to maturity securities, net	0	0
Loans, net	265,053	259,500
Non-interest bearing	0	0
Interest bearing	403,926	358,151
Time deposits	36,987	37,128
Borrowings from Federal Home Loan Bank		0
Carrying Amount
Fair Value Measurements and Disclosures
Cash and due from banks	57,386	19,581
Available for sale securities	323,543	298,116
Held to maturity securities, net	83,992	91,052
Loans, net	265,714	260,767
Non-interest bearing	187,743	172,909
Interest bearing	441,001	393,934
Time deposits	$ 37,445	37,586
Borrowings from Federal Home Loan Bank		$ 800

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Income Taxes - Deferred taxes (Details) - USD ($)	Mar. 31, 2026	Dec. 31, 2025
Deferred tax assets:
Allowance for credit losses	$ 825,000	$ 783,000
Employee benefit plans' liabilities	4,020,000	4,028,000
Unrealized loss on available for sale securities, charged from equity	6,507,000	6,268,000
Loss on credit impairment of securities	423,000	423,000
Earned retiree health benefits plan liability	1,172,000	1,172,000
General business and AMT credits	17,000	17,000
State income tax net operating loss carryforward	705,000	771,000
Other	132,000	126,000
Valuation allowance	(423,000)	(423,000)
Deferred tax assets	13,378,000	13,165,000
Deferred tax liabilities:
Unearned retiree health benefits plan asset	240,000	240,000
Bank premises and equipment	1,812,000	1,883,000
Deferred tax liabilities	2,052,000	2,123,000
Net deferred taxes	$ 11,326,000	$ 11,042,000

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Income Taxes - Components of Income taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Current:
Federal	$ 447,000	$ 258,000
Total current	447,000	258,000
Deferred:
Federal	(125,000)	46,000
State	80,000	71,000
Total deferred	(45,000)	117,000
Total income tax (benefit) expense	$ 402,000	$ 375,000

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Income Taxes - Reconciliation of federal income tax rate (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Tax
Taxes computed at statutory rate	$ 388,000	$ 354,000
State income tax expense, net of federal effect	64,000	57,000
Tax -exempt interest income	(38,000)	(42,000)
Income from BOLI	(27,000)	(25,000)
Tefra disallowance	15,000	14,000
Federal tax credits		(2,000)
Other		19,000
Total income tax (benefit) expense	$ 402,000	$ 375,000
Tax Jurisdiction of Domicile [Extensible Enumeration]	country:US	country:US
Rate
Taxes computed at statutory rate	21.00%	21.00%	21.00%
State income tax expense, net of federal effect	3.00%	3.00%
Tax -exempt interest income	(2.00%)	(3.00%)
Income from BOLI	(1.00%)	(1.00%)
Tefra disallowance	1.00%	1.00%
Federal tax credits		0.00%
Other		1.00%
Total income tax (benefit) expense	22.00%	22.00%

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Income Taxes - Additional information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Income Taxes
U.S. Federal income tax rate	21.00%	21.00%	21.00%
State income tax rate	3.95%		3.95%
Current income tax expense (benefit)	$ 447,000	$ 258,000
Deferred income tax expense (benefit)	(45,000)	117,000
Income tax expense	$ 402,000	$ 375,000
Effective income tax rate percent	22.00%	22.00%
Federal income tax payments	$ 0	$ 0
State income tax payments	0	$ 0
Net deferred tax asset	11,326,000		$ 11,042,000
Unrecognized tax benefits	$ 0

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Segment Reporting (Details)	3 Months Ended
	Mar. 31, 2026 segment
Segment Reporting
Number of Operating Segments	1
Number of Reportable Segments	1