What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-13 compared with 2026-05-15 · 1061 added, 644 removed, 397 unchanged (81% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except share

and per share data)

(dollars in thousands, except share and per share data)

2026 December 31,

(Unaudited) 2025

Cash and noninterest-bearing deposits with banks $ 15,519 $ 14,845

1 unchanged sentence

Total cash and cash equivalents 78,084 45,897

Securities available for sale

Securities held to maturity, net of allowance for credit losses of $ 1 in 2026 and 2025

Debt securities available for sale 250,236 253,906

Debt securities held to maturity, net of allowance for credit losses of $ 1 in 2026 and 2025 5,404 5,452

Equity securities 376 -

Restricted investments in bank stocks 5,258 5,258

Total loans 1,246,114 1,196,018

Allowance for credit losses ( 16,610 ) ( 11,519 )

Net loans 1,229,504 1,184,499

Premises and equipment, net 22,357 20,509

1 unchanged sentence

Accrued interest receivable 5,485 5,476

Goodwill 7,319 7,319

Bank owned life insurance and annuity assets 42,960 43,305

1 unchanged sentence

Deferred tax assets 6,082 5,621

Other assets 6,573 4,089

Total assets $ 1,661,436 $ 1,582,654

Noninterest-bearing deposits $ 319,288 $ 314,131

21 unchanged sentences

(dollars in thousands, except per share data)

Three months ended

Three months ended Six months ended

June 30, June 30,

2026 2025 2026 2025

Interest and dividend income:

Loans, including fees $ 19,998 $ 17,984 $ 39,402 $ 34,679

Taxable 2,398 2,295 4,773 4,450

Tax exempt 26 28 52 56

Dividends 90 93 178 189

Interest-bearing deposits with banks 966 639 1,548 1,465

23,478 21,039 45,953 40,839

Interest expense:

Deposits 7,533 5,988 14,564 12,121

Other borrowed funds 426 382 862 775

Subordinated debentures 121 134 241 268

8,080 6,504 15,667 13,164

Net interest income 15,398 14,535 30,286 27,675

3 unchanged sentences

Service charges on deposit accounts 774 723 1,519 1,443

Trust fees 89 100 181 203

Income from bank owned life insurance and annuity assets 242 243 620 483

2 unchanged sentences

Debit / credit card interchange income 1,349 1,279 2,584 2,428

Unrealized gains on equity securities 377 ---- 377 ----

Tax preparation fees 42 38 650 634

Other 275 290 468 551

3,186 2,848 6,474 6,494

Noninterest expense:

Salaries and employee benefits 6,553 6,194 12,900 12,206

Occupancy 541 493 1,065 1,014

Furniture and equipment 338 338 656 688

3 unchanged sentences

Data processing 364 969 1,275 1,894

Software 661 587 1,334 1,128

Other 1,776 1,525 3,310 3,032

11,245 11,049 22,546 21,867

Income before income taxes 3,584 5,186 8,837 10,738

Provision for income taxes 657 976 1,613 2,122

NET INCOME $ 2,927 $ 4,210 $ 7,224 $ 8,616

Earnings per share $ 0.62 $ 0.89 $ 1.53 $ 1.83

3 unchanged sentences

(dollars in thousands)

Three months ended

Three months ended Six months ended

June 30, June 30,

2026 2025 2026 2025

Net Income $ 2,927 $ 4,210 $ 7,224 $ 8,616

Other comprehensive income (loss):

Change in unrealized (loss) gain on available for sale securities

Related tax benefit (expense)

Total other comprehensive (loss) income, net of tax

Change in unrealized gain (loss) on available for sale debt securities 458 2,462 ( 2,352 ) 5,051

Related tax (expense) benefit ( 101 ) ( 543 ) 519 ( 1,114 )

Total other comprehensive income (loss), net of tax 357 1,919 ( 1,833 ) 3,937

Total comprehensive income $ 3,284 $ 6,129 $ 5,391 $ 12,553

4 unchanged sentences

(dollars in thousands, except share and per share data)

Quarter-to-date

Comprehensive

Income (Loss)

Shareholders'

Additional Other Total

Common Paid-In Retained Comprehensive Treasury Shareholders'

Quarter-to-date Stock Capital Earnings Income (Loss) Stock Equity

Balance at April 1, 2026 $ 5,491 $ 52,321 $ 136,220 $ ( 4,059 ) $ ( 18,693 ) $ 171,280

Net income - - 2,927 - - 2,927

Other comprehensive income (loss), net - - - 357 - 357

Cash dividends, $ 0.25 per share - - ( 1,178 ) - - ( 1,178 )

Balance at June 30, 2026 $ 5,491 $ 52,321 $ 137,969 $ ( 3,702 ) $ ( 18,693 ) $ 173,386

Balance at April 1, 2025 $ 5,491 $ 52,321 $ 125,062 $ ( 8,466 ) $ ( 18,693 ) $ 155,715

Net income - - 4,210 - - 4,210

Other comprehensive income (loss), net - - - 1,919 - 1,919

Cash dividends, $ 0.23 per share - - ( 1,084 ) - - ( 1,084 )

Balance at June 30, 2025 $ 5,491 $ 52,321 $ 128,188 $ ( 6,547 ) $ ( 18,693 ) $ 160,760

Additional Other Total

Common Paid-In Retained Comprehensive Treasury Shareholders'

Year-to-date Stock Capital Earnings Income (Loss) Stock Equity

Balance at January 1, 2026 $ 5,491 $ 52,321 $ 133,007 $ ( 1,869 ) $ ( 18,693 ) $ 170,257

Net income - - 7,224 - - 7,224

Other comprehensive income (loss), net - - - ( 1,833 ) - ( 1,833 )

Cash dividends, $ 0.48 per share - - ( 2,262 ) - - ( 2,262 )

Balance at March 31, 2026

Balance at June 30, 2026 $ 5,491 $ 52,321 $ 137,969 $ ( 3,702 ) $ ( 18,693 ) $ 173,386

Balance at January 1, 2025 $ 5,491 $ 52,321 $ 121,693 $ ( 10,484 ) $ ( 18,693 ) $ 150,328

Net income - - 8,616 - - 8,616

Other comprehensive income (loss), net - - - 3,937 - 3,937

Cash dividends, $ 0.45 per share - - ( 2,121 ) - - ( 2,121 )

Balance at March 31 , 2025

Balance at June 30, 2025 $ 5,491 $ 52,321 $ 128,188 $ ( 6,547 ) $ ( 18,693 ) $ 160,760

See accompanying notes to consolidated financial statements

3 unchanged sentences

(dollars in thousands)

Three months ended

Six months ended

Net cash provided by operating activities:

$ 9,831 $ 4,974

Investing activities:

Proceeds from maturities and paydowns of securities available for sale

Purchases of securities available for sale

Proceeds from calls and maturities of securities held to maturity

Proceeds from maturities and paydowns of debt securities available for sale 56,644 76,041

Purchases of debt securities available for sale ( 54,651 ) ( 67,306 )

Proceeds from calls and maturities of debt securities held to maturity 45 548

Net change in loans ( 50,442 ) ( 39,285 )

Purchases of premises and equipment ( 2,658 ) ( 467 )

Purchases of bank owned life insurance and annuity asset ( 170 ) -

Withdrawals from bank owned life insurance and annuity asset 115 115

Net cash (used in) provided by investing activities

Net cash (used in) investing activities ( 51,117 ) ( 30,354 )

Financing activities:

3 unchanged sentences

Change in other short-term borrowings ( 435 ) 62

Net cash provided by financing activities

Net cash provided by (used in) financing activities 73,473 ( 3,100 )

Change in cash and cash equivalents 32,187 ( 28,480 )

3 unchanged sentences

Cash paid for interest $ 15,755 $ 12,712

Cash paid for income taxes 1,835 1,424

Operating lease liability arising from obtaining right-of-use asset 810 -

Proceeds from bank owned life insurance and annuity assets not settled 1,020 -

3 unchanged sentences

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION:

The accompanying consolidated financial

statements include the accounts of Ohio Valley Banc Corp.

(“Ohio Valley”) and its wholly-owned subsidiaries, The Ohio Valley Bank Company (the “Bank”), Loan Central, Inc., a consumer finance company, and Ohio Valley Financial Services Agency, LLC, an

PRESENTATION:

The accompanying consolidated financial statements include

the accounts of Ohio Valley Banc Corp.

(“Ohio Valley”) and its wholly-owned

subsidiaries, The Ohio Valley Bank Company (the “Bank”), Loan Central, Inc., a

consumer finance company, and Ohio Valley Financial Services Agency, LLC, an

insurance agency.

The Bank has one wholly-owned subsidiary, Ohio Valley REO, LLC (“Ohio Valley REO”), an Ohio limited liability company, to

which the Bank transfers certain real estate acquired by the Bank through foreclosure for sale by Ohio Valley REO.

Ohio Valley and its subsidiaries are collectively referred to as the “Company.” All material intercompany accounts and transactions have

been eliminated in consolidation.

These interim financial statements are prepared by the Company without audit and reflect all adjustments of a normal recurring nature which, in the opinion

of management, are necessary to present fairly the consolidated financial position of the Company at March 31, 2026, and its results of operations and cash flows for the periods presented.

The results of operations for the three months ended March 31,

2026 are not necessarily indicative of the operating results to be anticipated for the full fiscal year ending December 31, 2026.

The accompanying consolidated financial statements do not purport to contain all the necessary financial disclosures

required by U.S.

generally accepted accounting principles (“US GAAP”) that might otherwise be necessary in the circumstances.

The Annual Report of the Company for the year ended December 31, 2025, filed with the SEC on March 13, 2026 (the “2025 Annual

Report”), contains consolidated financial statements and related notes which should be read in conjunction with the accompanying consolidated financial statements.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL

The accounting and reporting policies followed by the Company conform to US GAAP established by the Financial Accounting Standards Board (“FASB”).

The preparation of financial statements in conformity with US GAAP requires

management to make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

INDUSTRY SEGMENT INFORMATION:

We conduct our

operations through a single business segment, banking, which derives interest and noninterest income through our banking products and services

and investment securities.

All of our income relates to our operations in the United States.

Pursuant to Financial Accounting Standards Codification 280, Segment Reporting, operating segments represent components of an enterprise for

which separate financial information is available that is regularly evaluated by the chief operating decision makers in determining how to allocate resources and assessing performance.

Our chief operating decision maker, which is our Chief Executive Officer, evaluates interest and noninterest income streams and credit losses

from our various products and services, while expense activities, including interest expense and noninterest expense, are managed, and financial performance is evaluated, on a Company-wide basis.

As a result, detailed profitability information for each

interest and noninterest income stream is not used by our chief operating decision maker to allocate resources or in assessing performance.

Rather, our chief operating decision maker uses consolidated net income to assess performance by comparing it to

and monitoring against budgeted and prior year results.

This information is used to manage resources to drive business and net income growth, including investment in key strategic priorities, as well as determining our ability to return capital to

shareholders.

Segment assets represent total assets on our Consolidated Balance Sheets and segment net income represents net income on our Consolidated Statements of Income..

NEW ACCOUNTING PRONOUNCEMENTS PENDING

In November 2024 , the FASB issued Accounting Standards Update (“ASU”) No.

The Bank has one wholly-owned subsidiary, Ohio Valley REO,

LLC (“Ohio Valley REO”), an Ohio limited liability company, to which the Bank

transfers certain real estate acquired by the Bank through foreclosure for sale

by Ohio Valley REO.

Ohio Valley and its subsidiaries are collectively referred

to as the “Company.” All material

intercompany accounts and transactions have been eliminated in consolidation.

interim financial statements are prepared by the Company without audit and

reflect all adjustments of a normal recurring nature which, in the opinion of

management, are necessary to present fairly the consolidated financial position

of the Company at June 30, 2026, and its results of operations and cash flows

for the periods presented.

of operations for the three and six months ended June 30, 2026 are not

necessarily indicative of the operating results to be anticipated for the full

fiscal year ending December 31, 2026.

The accompanying consolidated financial statements do not purport to

contain all the necessary financial disclosures required by U.S.

accepted accounting principles (“US GAAP”) that might otherwise be necessary in

the circumstances.

The Annual Report of

the Company for the year ended December 31, 2025, filed with the SEC on March

13, 2026 (the “2025 Annual Report”), contains consolidated financial statements

and related notes which should be read in conjunction with the accompanying

consolidated financial statements.

USE OF ESTIMATES IN THE

PREPARATION OF FINANCIAL STATEMENTS:

The accounting and reporting policies followed by the Company conform to

US GAAP established by the Financial Accounting Standards Board (“FASB”).

preparation of financial statements in conformity with US GAAP requires

management to make estimates and assumptions that affect the amounts reported

in the financial statements and the disclosures provided, and actual results

could differ.

INDUSTRY SEGMENT

We conduct our operations

through a single business segment, banking, which derives

interest and noninterest income through our banking products and services and

investment securities.

All of our income relates to our operations in the

United States.

Pursuant to Financial Accounting Standards

Codification 280, Segment Reporting, operating segments

represent components of an enterprise for which separate financial information

is available that is regularly evaluated by the chief operating decision makers

in determining how to allocate resources and assessing performance.

Our chief operating decision maker, which is our Chief

Executive Officer, evaluates interest and noninterest income streams and credit

losses from our various products and services, while expense activities,

including interest expense and noninterest expense, are managed, and financial

performance is evaluated, on a Company-wide basis.

As a result, detailed

profitability information for each interest and noninterest income stream

is not used by our chief operating decision maker to allocate

resources or in assessing performance.

Rather, our chief operating decision

maker uses consolidated net income to assess performance by comparing it to and

monitoring against budgeted and prior year results.

This information is used to

manage resources to drive business and net income growth, including investment

in key strategic priorities, as well as determining our ability to return

capital to shareholders.

Segment assets represent total assets on our

Consolidated Balance Sheets and segment net income represents net income on our

Consolidated Statements of Income.

NEW ACCOUNTING PRONOUNCEMENTS PENDING ADOPTION:

In November 2024 , the

FASB issued Accounting Standards Update (“ASU”) No.

2024 - 03, Disaggregation of Income Statement Expenses .

ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement to be presented in a tabular format in the footnotes to the financial statements.

ASU 2024-03 requires

additional disclosure of the nature of expenses included in the income

statement to be presented in a tabular format in the footnotes to the financial

ASU 2024-03 is effective for annual periods beginning after

December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The amendments in ASU 2024-03 should be applied on a prospective basis, although retrospective application is permitted.

The Company is currently

evaluating the impact of adopting ASU 2024-03 on its consolidated financial statements.

In November 2025, the FASB issued ASU No.

December 15, 2026, and interim periods within fiscal years beginning after

December 15, 2027.

The amendments in ASU 2024-03 should be applied on a

prospective basis, although retrospective application is permitted.

Company is currently evaluating the impact of adopting ASU 2024-03 on its

consolidated financial statements.

In November 2025, the FASB

issued ASU No.

2025‑08, Financial Instruments—Credit Losses (Topic

Purchased Loans .

This update amends the guidance in Accounting Standards Codification (“ASC”) Topic 326

to improve the accounting for acquired loans.

The amendments expand the population of acquired financial assets subject to the “gross-up” approach to include certain loans acquired without evidence of significant credit deterioration that meet the

definition of “purchased seasoned loans.” Under this approach, an allowance for expected credit losses is recognized at the acquisition date as an adjustment to the amortized cost basis of the asset, rather than through credit loss expense.

amendments are intended to improve comparability and better reflect the economics of acquired loans by eliminating the recognition of a Day 1 credit loss expense for such assets.

The amendments are effective for annual reporting periods beginning after

December 15, 2026, including interim periods within those annual periods, and should be applied prospectively to loans acquired after the adoption date.

This update amends the guidance in Accounting

Standards Codification (“ASC”) Topic 326 to improve the accounting for acquired

The amendments expand the population of acquired financial assets

subject to the “gross-up” approach to include certain loans acquired without

evidence of significant credit deterioration that meet the definition of

“purchased seasoned loans.” Under this approach, an allowance for expected

credit losses is recognized at the acquisition date as an adjustment to the

amortized cost basis of the asset, rather than through credit loss expense.

amendments are intended to improve comparability and better reflect the

economics of acquired loans by eliminating the recognition of a Day 1 credit

loss expense for such assets.

The amendments are effective for annual reporting

periods beginning after December 15, 2026, including interim periods within

those annual periods, and should be applied prospectively to loans acquired

after the adoption date.

Early adoption is permitted.

The Company is currently evaluating the impact of adopting ASU 2025-08

on its consolidated financial statements.

The Company is currently

evaluating the impact of adopting ASU 2025-08 on its consolidated financial

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In December 2025, the FASB issued ASU No.

December 2025, the FASB issued ASU No.

2025‑11, Interim Reporting (Topic

Narrow-Scope Improvements .

This update amends the guidance in ASC Topic 270 to improve the clarity and usability of interim reporting requirements.

This update amends the guidance in ASC

Topic 270 to improve the clarity and usability of interim reporting

requirements.

The amendments are intended to enhance the navigability of

interim disclosure requirements and clarify the applicability of Topic 270.

The ASU provides a comprehensive list of disclosures required in interim periods under US GAAP and introduces a disclosure principle requiring entities to disclose events and

changes that occur after the end of the most recent annual reporting period that have a material impact on the entity.

The amendments also clarify the form and content of interim financial statements.

The guidance is not intended to change the

fundamental nature of interim reporting or significantly expand or reduce existing disclosure requirements.

The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public

business entities, and for interim reporting periods within annual reporting periods beginning after December 15, 2028, for all other entities.

ASU provides a comprehensive list of disclosures required in interim periods

under US GAAP and introduces a disclosure principle requiring entities to

disclose events and changes that occur after the end of the most recent annual

reporting period that have a material impact on the entity.

The amendments also

clarify the form and content of interim financial statements.

The guidance is

not intended to change the fundamental nature of interim reporting or

significantly expand or reduce existing disclosure requirements.

The amendments

are effective for interim reporting periods within annual reporting periods

beginning after December 15, 2027, for public business entities, and for

interim reporting periods within annual reporting periods beginning after

December 15, 2028, for all other entities.

Early adoption is permitted.

The Company is currently evaluating the impact of adopting ASU 2025‑11 on its

Company is currently evaluating the impact of adopting ASU 2025‑11 on its

consolidated financial statements.

In December 2025, the FASB issued ASU No.

2025‑12, Codification Improvements .

This update is part of the FASB’s ongoing project to make incremental improvements to US GAAP and includes amendments to

correct errors, clarify guidance, and improve consistency across various topics within the ASC.

The amendments in ASU 2025‑12 affect multiple areas of US GAAP, including, but not limited to, earnings per share, lease accounting, transfers and

servicing, and equity method investments.

The changes are generally intended to enhance the clarity and operability of existing guidance and are not expected to have a significant impact on accounting practice for most entities.

December 2025, the FASB issued ASU No.

2025‑12, Codification

Improvements .

This update is part of the FASB’s ongoing project to make

incremental improvements to US GAAP and includes amendments to correct errors,

clarify guidance, and improve consistency across various topics within the ASC.

The amendments in ASU 2025‑12 affect multiple areas of US GAAP, including, but

not limited to, earnings per share, lease accounting, transfers and servicing,

and equity method investments.

The changes are generally intended to enhance

the clarity and operability of existing guidance and are not expected to have a

significant impact on accounting practice for most entities.

The amendments are

effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual periods.

effective for annual reporting periods beginning after December 15, 2026, and

interim periods within those annual periods.

Early adoption is permitted.

The Company is currently evaluating the impact of adopting ASU 2025‑12 on its consolidated

financial statements.

Company is currently evaluating the impact of adopting ASU 2025‑12 on its

consolidated financial statements.

DEBT SECURITIES:

The Company classifies securities into

held to maturity (“HTM”) and available for sale (“AFS”) categories.

HTM securities are those which the Company has the positive intent and ability to hold to maturity and are reported at amortized cost.

The Company classifies securities into held to maturity

(“HTM”) and available for sale (“AFS”) categories.

HTM securities are those

which the Company has the positive intent and ability to hold to maturity and

are reported at amortized cost.

Securities classified as AFS include securities

that could be sold for liquidity, investment management or similar reasons even if there is not a present intention of such a sale.

AFS securities are reported at fair value, with unrealized gains or losses included in other comprehensive income, net

Premium amortization is deducted from, and discount accretion is added to, interest income on securities using the level yield method without

anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated.

Gains and losses are recognized upon the sale of specific identified securities on the completed trade date.

FOR CREDIT LOSSES (“ACL”) - AFS SECURITIES:

For AFS debt securities in an unrealized position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before

recovery of its amortized cost basis.

If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income.

that could be sold for liquidity, investment management or similar reasons even

if there is not a present intention of such a sale.

AFS securities are reported

at fair value, with unrealized gains or losses included in other comprehensive

income, net of tax.

Premium amortization is deducted

from, and discount accretion is added to, interest income on securities using

the level yield method without anticipating prepayments, except for

mortgage-backed securities where prepayments are anticipated.

Gains and losses

are recognized upon the sale of specific identified securities on the completed

EQUITY SECURITIES :

The Company’s equity

securities are carried at fair value, with changes in fair value reported in

All of the Company’s equity securities have readily determinable

fair values and are carried at fair value, with changes recognized in net

ALLOWANCE FOR CREDIT LOSSES (“ACL”) - AFS SECURITIES:

For AFS debt securities in an unrealized position, the

Company first assesses whether it intends to sell, or it is more likely than

not that it will be required to sell the security before recovery of its

amortized cost basis.

If either of the criteria regarding intent or requirement

to sell is met, the security’s amortized cost basis is written down to fair

value through income.

For debt securities AFS that do not meet the

aforementioned criteria, the Company evaluates whether the decline in fair values has resulted from credit losses or other factors.

In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes

to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from

the security are compared to the amortized cost basis of the security.

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the

amount that the fair value is less than the amortized cost basis.

Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.

Changes in the ACL are recorded as credit loss expense (or reversal).

Losses are charged against the allowance when management believes the

uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Management made the accounting policy election to exclude accrued interest receivable from the estimate of credit losses.

aforementioned criteria, the Company evaluates whether the decline in fair

values has resulted from credit losses or other factors.

In making this

assessment, management considers the extent to which fair value is less than

amortized cost, any changes to the rating of the security by a rating agency,

and adverse conditions specifically related to the security, among other

If this assessment indicates that a credit loss exists, the present

value of cash flows expected to be collected from the security are compared to

the amortized cost basis of the security.

If the present value of cash flows

expected to be collected is less than the amortized cost basis, a credit loss

exists and an ACL is recorded for the credit loss, limited by the amount that

the fair value is less than the amortized cost basis.

Any impairment that has

not been recorded through an ACL is recognized in other comprehensive income.

Changes in the ACL are recorded

as credit loss expense (or reversal).

Losses are charged against the allowance

when management believes the uncollectibility of an AFS security is confirmed

or when either of the criteria regarding intent or requirement to sell is met.

Management made the accounting

policy election to exclude accrued interest receivable from the estimate of

credit losses.

Accrued interest receivable on AFS debt securities totaled $ 1,221

at March 31, 2026 and $ 1,330 at December 31, 2025.

Management classifies the AFS portfolio into the following major security types:

Government securities, U.S.

Government sponsored entity

securities, and Agency mortgage-backed residential securities.

At March 31, 2026 and December 31, 2025, there was no ACL related to AFS debt

at June 30, 2026 and $ 1,330 at December 31, 2025.

Management classifies the AFS

portfolio into the following major security types:

Government securities,

Government sponsored entity securities, and Agency mortgage-backed

residential securities.

At June 30, 2026 and December 31, 2025, there was no

ACL related to AFS debt securities.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

ACL - HTM SECURITIES:

Management measures expected credit losses

on HTM debt securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

The ACL on securities HTM is a contra asset valuation account that is deducted from the carrying amount of HTM securities to present the net amount expected to be collected.

HTM securities are charged off against the ACL when deemed uncollectible.

Adjustments to the ACL are reported in the Company’s consolidated statements of income in the provision for credit losses.

Management measures expected credit losses on HTM

debt securities on a collective basis by major security type with each type

sharing similar risk characteristics and considers historical credit loss

information that is adjusted for current conditions and reasonable and

supportable forecasts.

The ACL on securities HTM is a contra asset valuation

account that is deducted from the carrying amount of HTM securities to present

the net amount expected to be collected.

HTM securities are charged off against

the ACL when deemed uncollectible.

Adjustments to the ACL are reported in the

Company’s consolidated statements of income in the provision for credit losses.

Management classifies the HTM portfolio into two major security types:

Obligations of states and political subdivisions and

Agency mortgage-backed residential securities.

Agency mortgage-backed residential securities consist of only two securities with balances that are not significant.

With regard to obligations of states and political subdivisions, management considers

(1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities.

Obligations of states and political subdivisions and Agency mortgage-backed

residential securities.

Agency mortgage-backed residential securities consist

securities with balances that are

not significant.

With regard to obligations of states and political

subdivisions, management considers (1) issuer bond ratings, (2) historical loss

rates for given bond ratings, (3) the financial condition of the issuer, and

(4) whether issuers continue to make timely principal and interest payments

under the contractual terms of the securities.

2026, the ACL related to HTM debt securities was $ 1 , unchanged from December

Furthermore, there was no corresponding provision expense during the three months ended March 31 , 2026 and 2025.

Management made the accounting policy election to exclude accrued interest receivable from the estimate of credit losses.

Furthermore, there was no corresponding provision expense during the

three and six months ended June 30, 2026 and

Management made the accounting

policy election to exclude accrued interest receivable from the estimate of

credit losses.

Accrued interest receivable on HTM debt securities totaled $ 22

at March 31, 2026 and $ 13 at December 31, 2025.

Loans that management has the intent and ability to hold for the foreseeable

future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an ACL.

Interest income is reported on an accrual basis using the interest method and includes

amortization of net deferred loan fees and costs over the loan term using the level yield method without anticipating prepayments.

The amount of the Company’s recorded investment is not materially different than the amount of unpaid principal balance

Interest income is discontinued and the loan moved to non-accrual status when full loan repayment is in doubt, typically when the loan

payments are past due 90 days or over unless the loan is well-secured or in process of collection.

Past due status is based on the contractual terms of the loan.

In all cases, loans are placed on nonaccrual or charged-off at an earlier date if

collection of principal or interest is considered doubtful.

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income.

Interest received on such loans is

accounted for on the cash-basis method until qualifying for return to accrual.

Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The Bank also originates long-term, fixed-rate mortgage loans, with the full intention of being sold to the secondary market.

These loans are

considered held for sale during the period of time after the principal has been advanced to the borrower by the Bank, but before the Bank has been reimbursed by the Federal Home Loan Mortgage Corporation, typically within a few business days.

sold to the secondary market are carried at the lower of aggregate cost or fair value.

As of March 31, 2026 and December 31, 2025, there were no

loans held for sale by the Bank.

The ACL for loans is a contra asset valuation account that is

deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.

Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible.

at June 30, 2026 and $ 13 at December 31, 2025.

management has the intent and ability to hold for the foreseeable future or

until maturity or payoff are reported at the principal balance outstanding, net

of unearned interest, deferred loan fees and costs, and an ACL.

Interest income

is reported on an accrual basis using the interest method and includes

amortization of net deferred loan fees and costs over the loan term using the

level yield method without anticipating prepayments.

The amount of the

Company’s recorded investment is not materially different than the amount of

unpaid principal balance for loans.

Interest income is discontinued

and the loan moved to non-accrual status when full loan repayment is in doubt,

typically when the loan payments are past due 90 days or over unless the loan

is well-secured or in process of collection.

Past due status is based on the

contractual terms of the loan.

In all cases, loans are placed on nonaccrual or

charged-off at an earlier date if collection of principal or interest is

considered doubtful.

All interest accrued but not

received for loans placed on nonaccrual is reversed against interest income.

Interest received on such loans is accounted for on the cash-basis method until

qualifying for return to accrual.

Loans are returned to accrual status when all

the principal and interest amounts contractually due are brought current and

future payments are reasonably assured.

The Bank also originates

long-term, fixed-rate mortgage loans, with the full intention of being sold to

the secondary market.

These loans are considered held for sale during the

period of time after the principal has been advanced to the borrower by the Bank,

but before the Bank has been reimbursed by the Federal Home Loan Mortgage

Corporation, typically within a few business days.

Loans sold to the secondary

market are carried at the lower of aggregate cost or fair value.

As of June 30,

2026 and December 31, 2025, there were no loans held for sale by the Bank.

for loans is a contra asset valuation account that is deducted from the

amortized cost basis of loans to present the net amount expected to be

collected on the loans.

Loans, or portions thereof, are charged off against the

ACL when they are deemed uncollectible.

Expected recoveries do not exceed the

aggregate of amounts previously charged-off and expected to be charged-off.

The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans.

The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers historical loss experience,

current conditions and forecasts of future economic conditions.

Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period.

The methodology for determining the ACL has two main components:

evaluation of expected credit losses for certain groups of loans that share

similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans.

ACL is adjusted through the provision for credit losses and reduced by net

charge offs of loans.

The ACL is an estimate of

expected credit losses, measured over the contractual life of a loan, that

considers historical loss experience, current conditions and forecasts of

future economic conditions.

Determination of an appropriate ACL is inherently subjective

and may have significant changes from period to period.

The methodology for determining

the ACL has two main components:

evaluation of expected credit losses for

certain groups of loans that share similar risk characteristics and evaluation

of loans that do not share risk characteristics with other loans.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The ACL is measured on a collective (pool) basis when similar risk characteristics exist.

The Company has identified the following portfolio

segments and measures the ACL using the following methods:

Portfolio Segment

Measurement Method

Residential real estate

Cumulative Undiscounted Expected Loss

National Unemployment, National GDP

The ACL is measured on a

collective (pool) basis when similar risk characteristics exist.

has identified the following portfolio segments and measures the ACL using the

following methods:

Portfolio Segment Measurement Method Loss Driver

Residential real estate Cumulative Undiscounted Expected Loss National Unemployment, National gross domestic product ("National GDP")

Commercial real estate:

Owner-occupied

Cumulative Undiscounted Expected Loss

National Unemployment, National GDP

Nonowner-occupied

Cumulative Undiscounted Expected Loss

National Unemployment, National GDP

Cumulative Undiscounted Expected Loss

National Unemployment, National GDP

Commercial and industrial

Cumulative Undiscounted Expected Loss

National Unemployment, National GDP

Cumulative Undiscounted Expected Loss

National Unemployment

Cumulative Undiscounted Expected Loss

National Unemployment

Cumulative Undiscounted Expected Loss, Remaining Life Method

National Unemployment

Historical credit loss experience is the basis for the estimation of expected credit losses.

We apply historical loss rates to pools of loans

with similar risk characteristics.

In defining historical loss rates and the prepayment rates and curtailment rates used to determine the expected life of loans, the use of regional and national peer data was used.

After consideration of the historic

loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information at the balance sheet date.

Our reasonable and supportable

forecast adjustment, referred to above as “Loss Driver”, is based on the national unemployment rate and the national gross domestic product forecast for the first year.

For periods beyond our reasonable and supportable forecast, we revert to historical

loss rates utilizing a straight-line method over a two-year reversion period.

The qualitative adjustments for current conditions are based upon

changes in lending policies and practices, experience and ability of lending staff, quality of the Company’s loan review system, value of underlying collateral, the volume and severity of past due loans, the value of underlying collateral for

collateral dependent loans, the existence of and changes in concentrations and other external factors.

Each factor is assigned a value to reflect improving, stable, or declining conditions based on management’s best judgment using relevant information

available at the time of the evaluation.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate.

The contractual term excludes expected extensions, renewals, and modifications

Owner-occupied Cumulative Undiscounted Expected Loss National Unemployment, National GDP

Nonowner-occupied Cumulative Undiscounted Expected Loss National Unemployment, National GDP

Construction Cumulative Undiscounted Expected Loss National Unemployment, National GDP

Commercial and industrial Cumulative Undiscounted Expected Loss National Unemployment, National GDP

Automobile Cumulative Undiscounted Expected Loss National Unemployment

Home equity Cumulative Undiscounted Expected Loss National Unemployment

Other Cumulative Undiscounted Expected Loss, Remaining Life Method National Unemployment

Historical credit loss

experience is the basis for the estimation of expected credit losses.

historical loss rates to pools of loans with similar risk characteristics.

defining historical loss rates and the prepayment rates and curtailment rates

used to determine the expected life of loans, the use of regional and national

peer data was used.

After consideration of the historic loss calculation,

management applies qualitative adjustments to reflect the current conditions

and reasonable and supportable forecasts not already reflected in the

historical loss information at the balance sheet date.

Our reasonable and

supportable forecast adjustment, referred to above as “Loss Driver”, is based

on the national unemployment rate and the National GDP forecast for the first year.

For periods beyond our reasonable and supportable

forecast, we revert to historical loss rates utilizing a straight-line method

over a two-year reversion period.

The qualitative adjustments for current conditions

are based upon changes in lending policies and practices, experience and

ability of lending staff, quality of the Company’s loan review system, value of

underlying collateral, the volume and severity of past due loans, the value of

underlying collateral for collateral dependent loans, the existence of and

changes in concentrations and other external factors.

Each factor is assigned a

value to reflect improving, stable, or declining conditions based on

management’s best judgment using relevant information available at the time of

the evaluation.

Expected credit losses are estimated over the contractual term

of the loans, adjusted for expected prepayments when appropriate.

contractual term excludes expected extensions, renewals, and modifications

unless either of the following applies:

management has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower, or the extension of renewal options are included in the original or modified

contract at the reporting date and are not unconditionally cancellable by the Company.

The Company has elected to exclude accrued interest receivable from the measurement of its ACL.

Accrued interest receivable

on loans totaled $ 4,401 at March 31, 2026 and $ 4,111

at December 31, 2025.

When a loan is placed on nonaccrual status, any outstanding accrued interest is reversed against interest income.

Loans that do not share risk characteristics are evaluated on an individual basis.

Loans evaluated individually are not also included in the

collective evaluation.

We evaluate all loans that meet the following criteria:

1) when it is determined that foreclosure is probable;

2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the

operation or sale of the collateral;

3) when it is determined by management that a loan does not share similar risk characteristics with other loans.

Specific reserves are established based on the following three acceptable methods for measuring the

1) the present value of expected future cash flows discounted at the loan’s original effective interest rate;

management has a reasonable expectation

at the reporting date that a modification will be executed with an individual

borrower, or the extension of renewal options are included in the original or

modified contract at the reporting date and are not unconditionally cancellable

by the Company.

The Company has elected to

exclude accrued interest receivable from the measurement of its ACL.

interest receivable on loans totaled $ 4,194 at June 30, 2026 and $ 4,111 at

December 31, 2025.

When a loan is placed on nonaccrual status, any outstanding

accrued interest is reversed against interest income.

Loans that do not share risk

characteristics are evaluated on an individual basis.

Loans evaluated

individually are not also included in the collective evaluation.

all loans that meet the following criteria:

1) when it is determined that foreclosure

2) substandard, doubtful and nonperforming loans when repayment is

expected to be provided substantially through the operation or sale of the

3) when it is determined by management that a loan does not share

similar risk characteristics with other loans.

Specific reserves are

established based on the following three acceptable methods for measuring the

1) the present value of expected future cash flows discounted at the

loan’s original effective interest rate;

2) the loan’s observable market price;

or 3) the fair value of the collateral when the loan is collateral dependent.

Our individual loan

evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent.

Collateral values are discounted to consider disposition costs when appropriate.

A specific reserve is established or a charge-off

is taken if the fair value of the loan is less than the loan balance.

At March 31, 2026, there was $ 12,943

Our individual loan evaluations consist primarily of the fair value of

collateral method because most of our loans are collateral dependent.

values are discounted to consider disposition costs when appropriate.

specific reserve is established or a charge-off is taken if the fair value of

the loan is less than the loan balance.

At June 30, 2026, there was $ 16,610

in the ACL related to loans, compared to $ 11,519 at December 31, 2025.

This resulted in corresponding provision expense of $ 1,702 during the three months ended March 31, 2026, compared to $ 476 during the three months ended March 31, 2025.

The Company’s loan portfolio segments have been identified as follows:

Commercial and Industrial, Commercial Real Estate, Residential Real

Estate, and Consumer.

resulted in loan related provision expense of $ 3,815 and $ 5,517 during the

three and six months ended June 30, 2026, compared to $ 1,033 and $ 1,509 during

the three and six months ended June 30, 2025, respectively.

The Company’s loan portfolio

segments have been identified as follows:

Commercial and Industrial, Commercial

Real Estate, Residential Real Estate, and Consumer.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Commercial and industrial:

Portfolio segment

consists of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises.

Commercial and industrial loans are generally secured by business assets such as equipment, accounts

receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations.

The Company’s risk exposure is related to deterioration in the value of collateral securing the loan should foreclosure

become necessary.

Generally, business assets used or produced in operations do not maintain their value upon foreclosure, which may require the Company to write down the value significantly to sell.

Portfolio segment consists of borrowings for commercial purposes to

individuals, corporations, partnerships, sole proprietorships, and other

business enterprises.

Commercial and industrial loans are generally secured by

business assets such as equipment, accounts receivable, inventory, or any other

asset excluding real estate and generally made to finance capital expenditures

or operations.

The Company’s risk exposure is related to deterioration in the

value of collateral securing the loan should foreclosure become necessary.

Generally, business assets used or produced in operations do not maintain their

value upon foreclosure, which may require the Company to write down the value

significantly to sell.

Commercial real estate:

Portfolio segment consists

of nonfarm, nonresidential loans secured by owner-occupied and nonowner-occupied commercial real estate as well as commercial construction loans.

An owner-occupied loan relates to a borrower-purchased building or space for which the repayment of

principal is dependent upon cash flows from the ongoing business operations conducted by the party, or an affiliate of the party, who owns the property.

Owner-occupied loans that are dependent on cash flows from operations can be adversely affected by

current market conditions for their product or service.

A nonowner-occupied loan is a property loan for which the repayment of principal is dependent upon rental income associated with the property or the subsequent sale of the property.

Nonowner-occupied loans that are dependent upon rental income are primarily impacted by the level of interest rates associated with the debt and to local economic conditions, which dictate occupancy rates and the amount of rent charged.

The increase in

debt service due to higher interest rates may not be able to be passed on to tenants.

As part of the origination process, loan interest rates and occupancy rates are stressed to determine the impact on the borrower’s ability to maintain adequate debt

service under different economic conditions.

Furthermore, the Company monitors the concentration in any one industry and has established limits relative to capital.

In addition, credit quality trends are monitored by industry to determine if a change

in the risk exposure to a certain industry may warrant a change in our underwriting standards.

Commercial construction loans consist of borrowings to purchase and develop raw land into 1-4 family residential properties.

Construction loans are extended

to individuals as well as corporations for the construction of an individual or multiple properties and are secured by raw land and the subsequent improvements.

Repayment of the loans to real estate developers is dependent upon the sale of properties

to third parties in a timely fashion upon completion.

Should there be delays in construction or a downturn in the market for those properties, there may be significant erosion in value that may be absorbed by the Company.

Portfolio segment consists of nonfarm, nonresidential

loans secured by owner-occupied and nonowner-occupied commercial real estate as

well as commercial construction loans.

An owner-occupied loan relates to a

borrower-purchased building or space for which the repayment of principal is

dependent upon cash flows from the ongoing business operations conducted by the

party, or an affiliate of the party, who owns the property.

Owner-occupied

loans that are dependent on cash flows from operations can be adversely

affected by current market conditions for their product or service.

A nonowner-occupied

loan is a property loan for which the repayment of principal is dependent upon

rental income associated with the property or the subsequent sale of the

Nonowner-occupied loans that are dependent upon rental income are

primarily impacted by the level of interest rates associated with the debt and

to local economic conditions, which dictate occupancy rates and the amount of

rent charged.

The increase in debt service due to higher interest rates may not

be able to be passed on to tenants.

As part of the origination process, loan

interest rates and occupancy rates are stressed to determine the impact on the

borrower’s ability to maintain adequate debt service under different economic

Furthermore, the Company monitors the concentration in any one

industry and has established limits relative to capital.

In addition, credit

quality trends are monitored by industry to determine if a change in the risk

exposure to a certain industry may warrant a change in our underwriting

Commercial construction loans consist of borrowings to purchase and

develop raw land into 1-4 family residential properties.

Construction loans are

extended to individuals as well as corporations for the construction of an

individual or multiple properties and are secured by raw land and the

subsequent improvements.

Repayment of the loans to real estate developers is

dependent upon the sale of properties to third parties in a timely fashion upon

Should there be delays in construction or a downturn in the market

for those properties, there may be significant erosion in value that may be

absorbed by the Company.

Residential real estate:

Portfolio segment

consists of loans to individuals for the purchase of 1-4 family primary residences with repayment primarily through wage or other income sources of the individual borrower.

The Company’s loss exposure to these loans is dependent on local market

conditions for residential properties as loan amounts are determined, in part, by the fair value of the property at origination.

Portfolio segment consists of loans to

individuals secured by automobiles, open-end home equity loans and other loans to individuals for household, family, and other personal expenditures, both secured and unsecured.

Portfolio segment consists of loans to individuals for the

purchase of 1-4 family primary residences with repayment primarily through wage

or other income sources of the individual borrower.

The Company’s loss exposure

to these loans is dependent on local market conditions for residential

properties as loan amounts are determined, in part, by the fair value of the

property at origination.

Portfolio segment consists of loans to individuals secured

by automobiles, open-end home equity loans and other loans to individuals for

household, family, and other personal expenditures, both secured and unsecured.

These loans typically have maturities of six years or less with repayment

dependent on individual wages and income.

The risk of loss on consumer loans is elevated as the collateral securing these loans, if any, rapidly depreciate in value or may be worthless and/or difficult to locate if repossession is necessary.

The risk of loss on consumer loans is

elevated as the collateral securing these loans, if any, rapidly depreciate in

value or may be worthless and/or difficult to locate if repossession is

ACL – OFF-BALANCE SHEET CREDIT EXPOSURES:

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.

off-balance sheet credit exposures is adjusted through credit loss expense.

The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated

At March 31, 2026, there was $ 791 in the ACL related to off-balance sheet credit exposures, compared to $ 871 at December 31, 2025.

This resulted in corresponding provision expense recoveries of $ 80 and $ 60 during the three months ended March 31, 2026 and 2025,

respectively.

The Company estimates expected credit losses over the

contractual period in which the Company is exposed to credit risk via a

contractual obligation to extend credit, unless that obligation is

unconditionally cancellable by the Company.

The ACL on off-balance sheet credit

exposures is adjusted through credit loss expense.

The estimate includes

consideration of the likelihood that funding will occur and an estimate of

expected credit losses on commitments expected to be funded over its estimated

At June 30, 2026, there was $ 731 in the ACL related to off-balance sheet

credit exposures, compared to $ 871 at December 31, 2025.

This resulted in

corresponding provision expense recoveries of $ 60 and $ 140 during the three and

six months ended June 30, 2026, compared to $ 115 and $ 55 in provision expense

during the three and six months ended June 30, 2025, respectively.

EARNINGS PER SHARE:

Earnings per share is based on net income

divided by the weighted average number of common shares outstanding during the quarter.

The weighted average common shares outstanding were 4,711,001 for both the three months ended March 31 , 2026 and 2025.

Valley had no dilutive effect and no potential common shares issuable under stock options or other agreements for any period presented.

Earnings per share is based on net income divided by the weighted average

number of common shares outstanding during the quarter.

The weighted average

common shares outstanding were 4,711,001 for both the three and six months

ended June 30, 2026 and 2025, respectively.

Ohio Valley had no dilutive effect and no potential common shares issuable

under stock options or other agreements for any period presented.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most

advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

There are three levels of inputs that may be used to measure fair values:

Quoted prices (unadjusted)

for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

Significant other observable

inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Significant unobservable

inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following is a description of the Company’s valuation methodologies used to measure and disclose the fair values of its financial assets

and liabilities on a recurring or nonrecurring basis:

The fair values for

securities are determined by quoted market prices, if available (Level 1).

For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2).

For securities where quoted prices or

market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

During times when trading is more liquid, broker quotes are used (if available) to validate the model.

Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations.

Individually Evaluated Collateral Dependent

The fair value of individually evaluated collateral dependent loans is generally based on the fair value of collateral, less costs to sell.

When carried at fair value, individually evaluated collateral dependent loans generally receive

specific allocations of the ACL.

For collateral dependent loans, fair value is commonly based on recent real estate appraisals.

These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the

Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following is a description of the Company’s valuation methodologies used to measure and disclose the fair values of its financial assets and liabilities on a recurring or nonrecurring basis:

securities classified as AFS are measured at fair value on a recurring basis.

The fair values for securities are determined by quoted market prices, if

available (Level 1).

For securities where quoted prices are not available, fair

values are calculated based on market prices of similar securities (Level 2).

For securities where quoted prices or market prices of similar securities are

not available, fair values are calculated using discounted cash flows or other

market indicators (Level 3).

During times when trading is more liquid, broker

quotes are used (if available) to validate the model.

Rating agency and

industry research reports as well as defaults and deferrals on individual

securities are reviewed and incorporated into the calculations.

Evaluated Collateral Dependent Loans:

Loans with specific reserves based on

their fair value of collateral are measured on an as-needed, nonrecurring

The fair value of individually evaluated collateral dependent loans with

specific allocations of the ACL is generally based on the fair value of

collateral, less costs to sell, based on recent real estate appraisals.

appraisals may utilize a single valuation approach or a combination of

approaches including comparable sales and the income approach.

Adjustments are

routinely made in the appraisal process by the independent appraisers to adjust

for differences between the comparable sales and income data available.

adjustments are usually significant and typically result in a Level 3

classification of the inputs for determining fair value.

Non-real estate

collateral may be valued using an appraisal, net book value per the borrower’s

financial statements, or aging reports, adjusted or discounted based on

management’s historical knowledge, changes in market conditions from the time

of the valuation, and management’s expertise and knowledge of the client and

client’s business, resulting in a Level 3 fair value classification.

instances, fair value adjustments can be made based on a quoted price from an

observable input, such as a purchase agreement.

Such adjustments would be

classified as a Level 2 classification.

Individually evaluated collateral

dependent loans are evaluated on a quarterly basis for additional impairment

and adjusted accordingly.

Other Real Estate

Owned (“OREO”):

The value of foreclosed assets is measured on a nonrecurring

Assets acquired through or instead of loan foreclosure are initially

recorded at fair value less costs to sell when acquired, establishing a new

These assets are subsequently accounted for at the lower of cost or

fair value less estimated costs to sell.

Fair value is commonly based on recent

real estate appraisals.

These appraisals may utilize a single valuation

approach or a combination of approaches including comparable sales and the

income approach.

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

Such adjustments are usually significant and typically result in a

Level 3 classification of the inputs for determining fair value.

Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s

historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification.

In some instances, fair value adjustments can be made based on a quoted price from an observable input, such as a purchase agreement.

Such adjustments would be classified as a Level 2 classification.

I ndividually evaluated collateral dependent loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Other Real Estate Owned:

acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis.

These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to

Fair value is commonly based on recent real estate appraisals.

These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.

Adjustments are routinely made in the

appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining

In some instances, fair value adjustments can be made based on a quoted price from an observable input, such as a purchase agreement.

Such adjustments would be classified as a Level 2 classification.

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties)

or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company.

Once received, a member of management reviews the assumptions and approaches utilized in the appraisal as

well as the overall resulting fair value in comparison with management’s own assumptions of fair value based on factors that include recent market data or industry-wide statistics.

On an as-needed basis, the Company reviews the fair value of collateral, taking into consideration current market data, as well as all

selling costs that typically approximate 10 %.

Adjustments are routinely made in the appraisal process by the

independent appraisers to adjust for differences between the comparable sales

and income data available.

Such adjustments are usually significant and

typically result in a Level 3 classification of the inputs for determining fair

In some instances, fair value adjustments can be made based on a quoted

price from an observable input, such as a purchase agreement.

Such adjustments

would be classified as a Level 2 classification.

Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company.

Once received, a member of management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with management’s own assumptions of fair value based on factors that include recent market data or industry-wide statistics.

On an as-needed basis, the Company reviews the fair value of collateral, taking into consideration current market data, as well as all selling costs that typically approximate 10 %.

Interest Rate Swap Agreements:

fair value of interest rate swap agreements is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments).

The variable cash

receipts (or payments) are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves (Level 2).

The fair value of interest rate swap agreements is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments).

The variable cash receipts (or payments) are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves (Level 2).

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

1 unchanged sentence

Assets and liabilities measured at fair value on a recurring basis are summarized below:

Fair Value Measurements at March 31,

Quoted Prices in Active

Markets for Identical Assets

Significant Other

Observable Inputs

Unobservable Inputs

Fair Value Measurements at June 30, 2026 Using

Quoted Prices in Active Significant Other Significant

Markets for Identical Assets Observable Inputs Unobservable Inputs

(Level 1) (Level 2) (Level 3)

Government securities $ 83,839 $ - $ -

1 unchanged sentence

Agency mortgage-backed securities, residential - 161,289 -

Equity securities 376 - -

Interest rate swap derivatives - 726 -

Interest rate swap derivatives - ( 726 ) -

Fair Value Measurements at December 31,

Quoted Prices in Active

Markets for Identical Assets

Significant Other

Observable Inputs

Unobservable Inputs

Fair Value Measurements at December 31, 2025 Using

Quoted Prices in Active Significant Other Significant

Markets for Identical Assets Observable Inputs Unobservable Inputs

(Level 1) (Level 2) (Level 3)

Government securities $ 86,779 $ - $ -

3 unchanged sentences

Interest rate swap derivatives - ( 754 ) -

There were no transfers into or out of Level 3 during the periods ended March 31, 2026 or 2025.

There were no transfers into or out of Level 3 during the periods ended June 30, 2026 or 2025.

Assets and Liabilities Measured on a Nonrecurring Basis

There were no

assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2025.

Assets or liabilities measured at fair value on a nonrecurring basis at March 31, 2026 are summarized below:

Fair Value Measurements at March 31, 2026 Using

Quoted Prices in Active

Markets for Identical Assets

Significant Other

Observable Inputs

Unobservable Inputs

There were no assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2025.

Assets or liabilities measured at fair value on a nonrecurring basis at June 30, 2026 are summarized below:

Fair Value Measurements at June 30, 2026 Using

Quoted Prices in Active Significant Other Significant

Markets for Identical Assets Observable Inputs Unobservable Inputs

(Level 1) (Level 2) (Level 3)

Individually evaluated collateral dependent loans:

Residential real estate $ - $ - $ 882

Commercial real estate:

Owner-occupied

Nonowner-occupied - - 3,748

At March 31, 2026, the recorded investment of individually evaluated collateral dependent loans measured for impairment using the fair value

of collateral totaled $ 10,869 , with a corresponding valuation allowance of $ 2,031 , resulting in an increase of $ 2,031 in provision expense during the

three months ended March 31, 2026, with no corresponding charge-offs recognized.

This is compared to no impact to provision expense during the three months ended March 31, 2025.

Commercial and industrial - - 799

At June 30, 2026, the recorded

investment of individually evaluated collateral dependent loans measured for

impairment using the fair value of collateral totaled $ 11,990 , with a

corresponding valuation allowance of $ 6,561 , resulting in an increase of $ 4,823

and $ 6,561 in provision expense during the three and six months ended June 30,

2026, with no corresponding charge-offs recognized.

This is compared to an

increase of $ 42 in provision expense during the three and six months ended June

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

There were no financial

instruments measured at fair value on a non-recurring basis at December 31, 2025.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments

measured at fair value on a non-recurring basis at March 31, 2026:

Weighted Average

There were no financial instruments measured at fair value on a non-recurring basis at December 31, 2025.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2026:

June 30, 2026

Fair Valuation Unobservable

Value Technique(s) Input(s) Range Weighted Average

Individually evaluated collateral dependent loans:

Commercial real estate loans:

Owner-occupied

Sales approach

Adjustment to comparables

0 % to 0.21 %

Nonowner-occupied

Income approach

Capitalization rate

The carrying amounts and estimated fair values of financial instruments at March 31, 2026 and December 31, 2025 are as follows:

Fair Value Measurements at March 31,

Residential real estate $ 882 Sales approach Adjustment to comparables 4.4 % to 33.6 % 13.78 %

Commercial real estate:

Nonowner-occupied 3,748 Income approach Capitalization rate 8 % 8 %

Commercial and industrial 799 Sales approach Adjustment to comparables 0 % to 25 % 12.31 %

The carrying amounts and estimated fair values of financial instruments at June 30, 2026 and December 31, 2025 are as follows:

Carrying Fair Value Measurements at June 30, 2026 Using

Value Level 1 Level 2 Level 3 Total

Financial Assets:

Cash and cash equivalents $ 78,084 $ 78,084 $ - $ - $ 78,084

Securities available for sale

Securities held to maturity

Debt securities available for sale 250,236 83,839 166,397 - 250,236

Debt securities held to maturity 5,404 - 2,987 2,047 5,034

Equity securities 376 376 - - 376

Loans, net 1,229,504 - - 1,222,459 1,222,459

Interest rate swap derivatives 726 - 726 - 726

1 unchanged sentence

Financial liabilities:

Deposits 1,408,428 875,556 532,942 - 1,408,498

Other borrowed funds 41,822 - 41,148 - 41,148

2 unchanged sentences

Accrued interest payable 6,495 - 6,495 - 6,495

Fair Value Measurements at December 31,

Carrying Fair Value Measurements at December 31, 2025 Using

Value Level 1 Level 2 Level 3 Total

Financial Assets:

2 unchanged sentences

Securities held to maturity 5,452 - 2,963 2,111 5,074

Loans, net 1,184,499 - - 1,171,189 1,171,189

Interest rate swap derivatives 754 - 754 - 754

1 unchanged sentence

Financial liabilities:

Deposits 1,329,667 839,931 490,970 - 1,330,901

Other borrowed funds 44,848 - 44,386 - 44,386

2 unchanged sentences

Accrued interest payable 6,584 - 6,584 - 6,584

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.

These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument.

Because no market exists for a significant portion of the

Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.

These estimates are subjective

in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.

Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.

These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.

Changes in assumptions could significantly affect the estimates.

NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of securities AFS and securities HTM at March 31, 2026 and December 31, 2025 and the corresponding

amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

Securities Available for Sale

Gross Unrealized

March 31 , 2026

The following table summarizes the amortized cost and fair value of securities AFS and securities HTM at June 30, 2026 and December 31, 2025 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

Securities Available for Sale Amortized Gross Unrealized Gross Unrealized Estimated

Cost Gains Losses Fair Value

June 30, 2026

Government securities $ 83,959 $ 112 $ ( 232 ) $ 83,839

7 unchanged sentences

Total securities $ 256,303 $ 1,343 $ ( 3,740 ) $ 253,906

Securities Held to Maturity

Gross Unrecognized

Allowance for Credit Losses

March 31 , 2026

Securities Held to Maturity Amortized Gross Unrecognized Gross Unrecognized Estimated Allowance for

Cost Gains Losses Fair Value Credit Losses

June 30, 2026

Obligations of states and political subdivisions $ 5,405 $ - $ ( 371 ) $ 5,034 $ ( 1 )

3 unchanged sentences

Total securities $ 5,453 $ - $ ( 379 ) $ 5,074 $ ( 1 )

The amortized cost and estimated fair value of debt securities at March 31, 2026, by contractual maturity, are shown below.

maturities may differ from contractual maturities because certain issuers may have the right to call or prepay the debt obligations prior to their contractual maturities.

The amortized cost and estimated fair value of debt securities at June 30, 2026, by contractual maturity, are shown below.

Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay the debt obligations prior to their contractual maturities.

Securities not due at a single maturity are shown separately.

Available for Sale

Held to Maturity

Available for Sale Held to Maturity

Amortized Estimated Amortized Estimated

Debt Securities:

Cost Fair Value Cost Fair Value

Due in one year or less $ 54,578 $ 54,378 $ 631 $ 625

4 unchanged sentences

Total debt securities $ 254,985 $ 250,236 $ 5,405 $ 5,034

There were no sales of securities during the

three months ended March 31, 2026 and 2025.

Debt securities with a carrying value of approximately $ 176,175 at March 31, 2026 and $ 195,245 at December 31, 2025, respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law.

There were no sales of debt securities during the three and six months ended June 30, 2026 and 2025.

securities with a carrying value of approximately $ 175,647 at June 30, 2026 and $ 195,245 at December

respectively, were pledged to secure public deposits, repurchase agreements,

and for other purposes required or permitted by law.

NOTE 3 – SECURITIES (Continued)

The following table summarizes debt securities AFS in an unrealized loss position for which an ACL losses has not been recorded at March 31, 2026 and December 31, 2025, aggregated by major security

type and length of time in a continuous unrealized loss position:

March 31 , 2026

Less Than 12 Months

12 Months or More

The following table summarizes debt securities AFS in an unrealized loss position for which an ACL losses has not been recorded at June 30, 2026 and December 31, 2025, aggregated by major security type and length of time in a continuous unrealized loss position:

June 30, 2026 Less Than 12 Months 12 Months or More Total

Unrealized Unrealized Unrealized

Fair Value Loss Fair Value Loss Fair Value Loss

Securities Available for Sale

Government securities $ 54,457 $ ( 123 ) $ 11,898 $ ( 109 ) $ 66,355 $ ( 232 )

Government sponsored entity

Agency mortgage-backed

securities, residential

Government sponsored entity securities - - 5,108 ( 228 ) 5,108 ( 228 )

Agency mortgage-backed securities, residential 87,311 ( 1,294 ) 41,059 ( 3,253 ) 128,370 ( 4,547 )

Total available for sale $ 141,768 $ ( 1,417 ) $ 58,065 $ ( 3,590 ) $ 199,833 $ ( 5,007 )

December 31 , 2025

Less Than 12 Months

12 Months or More

December 31, 2025 Less Than 12 Months 12 Months or More Total

Unrealized Unrealized Unrealized

Fair Value Loss Fair Value Loss Fair Value Loss

Securities Available for Sale

Government securities $ - $ - $ 16,755 $ ( 238 ) $ 16,755 $ ( 238 )

Government sponsored entity

Government sponsored entity securities - - 5,124 ( 212 ) 5,124 ( 212 )

Agency mortgage-backed securities, residential 35,475 ( 154 ) 46,121 ( 3,136 ) 81,596 ( 3,290 )

Total available for sale $ 35,475 $ ( 154 ) $ 68,000 $ ( 3,586 ) $ 103,475 $ ( 3,740 )

Management evaluates AFS debt securities in unrealized positions to determine whether impairment is due to credit-related factors.

Consideration is given to

(1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow

Management evaluates AFS

debt securities in unrealized positions to determine whether impairment is due

to credit-related factors.

Consideration is given to (1) the extent to which

the fair value is less than cost, (2) the financial condition and near-term

prospects of the issuer, and (3) the intent and ability of the Company to

retain its investment in the security for a period of time sufficient to allow

for any anticipated recovery in fair value.

At March 31, 2026, the Company had 64 AFS debt securities in an unrealized position without an ACL, of which 7 were from U.S.

Government securities, 2 were from U.S.

Government sponsored entity securities, and 55 were from Agency mortgage-backed residential securities.

Comparatively at December 31, 2025, the Company had 53 AFS debt

30, the Company had 68 AFS debt

securities in an unrealized position without an ACL, of which 10 were from U.S.

Government securities, 2 were from U.S.

Government sponsored entity securities, and 56 were from

Agency mortgage-backed residential securities.

Comparatively at December

31, 202 5 , the Company had 53 AFS debt securities in an

unrealized position without an ACL, of which 3 were from U.S.

Government securities, 2 were from U.S.

Government sponsored entity securities, and 48 were from Agency mortgage-backed residential securities.

Management does not

have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.

The fair value is expected to recover as the securities approach their

maturity date or repricing date or if market yields for such investments decline.

Accordingly, as of March 31, 2026 and December 31, 2025,

management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and, therefore, the Company carried no ACL on AFS debt securities at

March 31, 2026 and December 31, 2025.

does not have the intent to sell any of these securities and believes that it

is more likely than not that the Company will not have to sell any such

securities before a recovery of cost.

The fair value is expected to recover as

the securities approach their maturity date or repricing date or if market

yields for such investments decline.

Accordingly, as of June

and December 31, 2025, management

believes that the unrealized losses detailed in the previous table are due to

noncredit-related factors, including changes in interest rates and other market

conditions , and, therefore, the Company

carried no ACL on AFS debt securities at June 30, 2026 and December 31, 2025.

NOTE 3 – SECURITIES (Continued)

The following table presents the activity in the ACL for HTM debt securities:

Held to Maturity Debt Securities

Three months ended

March 31, 2026

Three months ended

March 31, 2025

Six months ended Six months ended

Held to Maturity Debt Securities June 30, 2026 June 30, 2025

Allowance for credit losses:

2 unchanged sentences

Allowance for credit losses ending balance $ 1 $ 1

The Company’s HTM securities consist of obligations of states and political subdivisions.

The ACL on HTM securities is estimated at each measurement date on

a collective basis by major security type.

Risk factors such as issuer bond ratings, historical loss rates, financial condition of issuer, and timely principal and interest payments of issuer were evaluated to determine if a credit reserve was

required within the portfolio.

At March 31, 2026, there were no past due principal and interest payments related to HTM securities.

first quarter of 2026 and 2025, the cumulative loss rate remained at 0.02 %, resulting in no change to provision expense during the three months ended March 31, 2026

The Company’s HTM securities consist of

obligations of states and political subdivisions.

The ACL on HTM securities is

estimated at each measurement date on a collective basis by major security

Risk factors such as issuer bond

ratings, historical loss rates, financial condition of issuer, and timely

principal and interest payments of issuer were evaluated to determine if a

credit reserve was required within the portfolio.

30, 2026 , there were no past due principal and interest payments related to HTM

During the second quarter of 2026 and 2025, the cumulative loss

rate remained at 0.02 %, resulting in no change to provision expense during the three and

six months ended June 30, 2026 and 2025.

The Company’s equity securities portfolio is

comprised of common stock with readily determinable fair values.

31, 2025, this portfolio consisted of 954 shares of Visa Inc.

(“Visa”) Class

B-1 common stock that were not marketable and carried at a $ 0 cost basis.

April 13, 2026, Visa announced the commencement of a public offering to permit

the exchange of Class B-1 common stock for a combination of shares of Class B-3

common stock and Class C common stock.

On May 8, 2026, the public exchange offer

closed, and in exchange for its 954 shares of Visa Class B-1 common stock, the

Company received 238 shares of Visa Class B-3 common stock and 274 shares of

Visa Class C common stock.

As a result of the exchange offer, the Company

marked its Class C common stock to fair value and recorded a $ 377 gain in net

income based on the conversion privilege of Class C common stock and the

closing price of Visa Class A common stock.

The $ 377 gain included $ 1 in

fractional shares that were converted to cash proceeds, which resulted in a

carrying value of $ 376 in the Company’s equity securities portfolio at June 30,

The Company’s Visa Class B-3 common stock will be carried at a $ 0 cost

As a result of the Visa exchange offer, net gains recognized during both

the three and six months ended June 30, 2026 on equity securities still held at

June 30, 2026 were $ 377 , compared to no gains during the same periods in 2025.

There were no gains recognized on the sale of equity securities during the

three and six months ended June 30, 2026 and 2025.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans are comprised of the following:

June 30, December 31,

Residential real estate $ 436,933 $ 417,920

2 unchanged sentences

Nonowner-occupied 301,616 269,285

Construction 92,223 86,028

Commercial and industrial 165,867 167,099

Automobile 31,865 37,277

Home equity 54,806 50,605

Other 48,895 53,080

1,246,114 1,196,018

Allowance for credit losses ( 16,610 ) ( 11,519 )

At March 31, 2026 and December 31, 2025 , net deferred loan origination fees were $ 474 and $ 357 , respectively.

At March 31, 2026 and December 31, 2025 , net unamortized loan purchase discounts were $ 869 and $ 833 , respectively.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following table presents the recorded investment of nonaccrual loans and

loans past due 90 days or more and still accruing by class of loans as of March 31, 2026 and December 31, 2025:

March 31 , 2026

Loans Past Due

Still Accruing

Loans With No

Loans With an

Loans, net $ 1,229,504 $ 1,184,499

At June 30, 2026 and December 31, 2025, net

deferred loan origination fees were $ 596 and $ 357 ,

respectively.

At June 30, 2026 and December 31, 2025, net

unaccreted loan purchase discounts were $ 897 and

respectively.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of June 30, 2026 and December 31, 2025:

Loans Past Due Nonaccrual Nonaccrual Total

90 Days And Loans With No Loans With an Nonaccrual

June 30, 2026 Still Accruing ACL ACL Loans

Residential real estate $ 37 $ - $ 2,093 $ 2,093

2 unchanged sentences

Nonowner-occupied - 2,164 6,193 8,357

Construction 676 - - -

Commercial and industrial - 912 92 1,004

December 31, 2025

Loans Past Due

Still Accruing

Loans With No

Loans With an

Automobile 56 - 230 230

Home equity - 24 275 299

Other 19 - 77 77

Total $ 788 $ 7,995 $ 9,177 $ 17,172

Loans Past Due Nonaccrual Nonaccrual Total

90 Days And Loans With No Loans With an Nonaccrual

December 31, 2025 Still Accruing ACL ACL Loans

Residential real estate $ - $ 324 $ 1,758 $ 2,082

2 unchanged sentences

Nonowner-occupied - 4,956 214 5,170

Construction - 6,000 - 6,000

Commercial and industrial 1,171 942 8 950

The Company recognized $ 8 and $ 18 of interest income in nonaccrual loans during the three months ended March 31, 2026 and 2025, respectively.

Automobile 75 - 172 172

Home equity - 24 294 318

Other 12 - 103 103

Total $ 1,258 $ 12,925 $ 2,549 $ 15,474

The Company recognized $ 69 and $ 77 of interest income in nonaccrual

loans during the three and six months ended June 30, 2026, respectively.

This is compared to $ 28 and $ 46 of interest income in

nonaccrual loans during the three and six months ended June 30, 2025, respectively

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The following table presents the aging of the recorded investment of past due loans by class of loans as of March 31, 2026 and December 31, 2025:

March 31 , 2026

The following table presents the aging of the recorded investment of past due loans by class of loans as of June 30, 2026 and December 31, 2025:

30-59 60-89 90 Days

Days Days Or More Total Loans Not

June 30, 2026 Past Due Past Due Past Due Past Due Past Due Total

Residential real estate $ 3,123 $ 1,542 $ 895 $ 5,560 $ 431,373 $ 436,933

2 unchanged sentences

Nonowner-occupied 71 - 6,000 6,071 295,545 301,616

Construction - - 676 676 91,547 92,223

Commercial and industrial 85 - 999 1,084 164,783 165,867

December 31 , 2025

Automobile 686 217 200 1,103 30,762 31,865

Home equity 381 153 237 771 54,035 54,806

Other 378 154 76 608 48,287 48,895

Total $ 4,724 $ 2,267 $ 14,194 $ 21,185 $ 1,224,929 $ 1,246,114

30-59 60-89 90 Days

Days Days Or More Total Loans Not

December 31, 2025 Past Due Past Due Past Due Past Due Past Due Total

Residential real estate $ 4,656 $ 1,523 $ 570 $ 6,749 $ 411,171 $ 417,920

2 unchanged sentences

Nonowner-occupied - - - - 269,285 269,285

Construction - - 6,000 6,000 80,028 86,028

Commercial and industrial 248 35 2,113 2,396 164,703 167,099

Automobile 918 327 122 1,367 35,910 37,277

Home equity 194 64 149 407 50,198 50,605

Other 581 225 52 858 52,222 53,080

Total $ 7,269 $ 6,885 $ 9,685 $ 23,839 $ 1,172,179 $ 1,196,018

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as:

current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.

These risk categories are represented by a loan grading scale from 1 through 11.

analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and ”classified” assets.

The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be

loans that are graded 9 through 11.

The Company analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and ”classified” assets.

The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be loans that are graded 9 through 11.

The Company’s risk categories are reviewed at least annually on loans that have aggregate borrowing amounts that meet or exceed $ 1,000 .

1 unchanged sentence

Special Mention.

Loans classified as

“special mention” are graded 8 and indicate considerable risk due to deterioration of repayment (in the earliest stages) due to potential weak primary repayment source, or payment delinquency.

These loans will be under constant supervision, are not

classified and do not expose the institution to sufficient risks to warrant classification.

These deficiencies should be correctable within the normal course of business, although significant changes in company structure or policy may be necessary to

correct the deficiencies.

Loans classified as “special mention” are graded 8 and indicate considerable risk due to deterioration of repayment (in the earliest stages) due to potential weak primary repayment source, or payment delinquency.

These loans will be under constant supervision, are not classified and do not expose the institution to sufficient risks to warrant classification.

These deficiencies should be correctable within the normal course of business, although significant changes in company structure or policy may be necessary to correct the deficiencies.

These loans are considered bankable assets with no apparent loss of principal or interest envisioned.

The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally

The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted.

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The Company uses the following definitions for its classified loan risk ratings:

Loans classified as

“substandard” are graded 9 and represent very high risk, serious delinquency, nonaccrual, or unacceptable credit.

Repayment through the primary source of repayment is in jeopardy due to the existence of one or more well-defined weaknesses, and the

collateral pledged may inadequately protect collection of the loans.

Loans classified as “substandard” are graded 9 and represent very high risk, serious delinquency, nonaccrual, or unacceptable credit.

Repayment through the primary source of repayment is in jeopardy due to the existence of one or more well-defined weaknesses, and the collateral pledged may inadequately protect collection of the loans.

Loss of principal is not likely if weaknesses are corrected, although financial statements normally reveal significant weakness.

Loans are still considered collectible, although loss

of principal is more likely than with special mention loans.

Loans are still considered collectible, although loss of principal is more likely than with special mention loans.

Collateral liquidation is considered likely to satisfy debt.

Loans classified as

“doubtful” are graded 10 and display a high probability of loss, although the amount of actual loss at the time of classification is undetermined.

This classification should be temporary until such time that actual loss can be identified, or

improvements are made to reduce the seriousness of the classification.

Loans classified as “doubtful” are graded 10 and display a high probability of loss, although the amount of actual loss at the time of classification is undetermined.

This classification should be temporary until such time that actual loss can be identified, or improvements are made to reduce the seriousness of the classification.

These loans exhibit all substandard characteristics with the addition that weaknesses make collection or liquidation in full highly questionable and improbable.

This classification

consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value.

Loss is deferred until certain important and reasonable specific pending factors that may strengthen the

credit can be more accurately determined.

This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value.

Loss is deferred until certain important and reasonable specific pending factors that may strengthen the credit can be more accurately determined.

These factors may include proposed acquisitions, liquidation procedures, capital injection, receipt of additional collateral, mergers, or refinancing plans.

A doubtful classification for an entire credit should

be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded substandard.

Loans classified as “loss” are

graded 11 and are considered uncollectible and are of such little value that their continuance as bankable assets is not warranted.

This classification does not mean that the credit has absolutely no recovery or salvage value, but rather it is not

practical or desirable to defer writing off this asset yielding such a minimum value even though partial recovery may be affected in the future.

A doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded substandard.

Loans classified as “loss” are graded 11 and are considered uncollectible and are of such little value that their continuance as bankable assets is not warranted.

This classification does not mean that the credit has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset yielding such a minimum value even though partial recovery may be affected in the future.

Amounts classified as loss should be promptly charged off.

As of March 31, 2026 and December 31, 2025, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

As of June 30, 2026 and December 31, 2025, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Commercial real estate:

Owner-occupied

Pass $ 4,139 $ 34,073 $ 12,914 $ 15,568 $ 6,393 $ 29,961 $ 3,675 $ 106,723

Special Mention 2,075 - - - - - - 2,075

Substandard - - - - - 5,111 - 5,111

Doubtful - - - - - - - -

Total $ 6,214 $ 34,073 $ 12,914 $ 15,568 $ 6,393 $ 35,072 $ 3,675 $ 113,909

Current Period gross charge-offs $ - $ - $ - $ 6 $ - $ 49 $ - $ 55

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Commercial real estate:

Nonowner-occupied

Pass $ 26,130 $ 65,352 $ 36,494 $ 26,905 $ 36,521 $ 92,721 $ 8,978 $ 293,101

Special Mention - - - - - - - -

Substandard 350 - - 2,165 6,000 - - 8,515

Doubtful - - - - - - - -

Total $ 26,480 $ 65,352 $ 36,494 $ 29,070 $ 42,521 $ 92,721 $ 8,978 $ 301,616

Current Period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ -

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Commercial real estate:

Pass $ 10,741 $ 34,498 $ 13,375 $ 8,801 $ 14,180 $ 3,251 $ 6,701 $ 91,547

Special Mention - - - - - - - -

Substandard - - - - - - 676 676

Doubtful - - - - - - - -

Total $ 10,741 $ 34,498 $ 13,375 $ 8,801 $ 14,180 $ 3,251 $ 7,377 $ 92,223

Current Period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ -

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Commercial and industrial

Pass $ 4,159 $ 25,467 $ 6,516 $ 5,278 $ 18,294 $ 57,904 $ 34,323 $ 151,941

Special Mention - - - - - - 2,820 2,820

Substandard - - 380 - 75 5,913 4,738 11,106

Doubtful - - - - - - - -

Total $ 4,159 $ 25,467 $ 6,896 $ 5,278 $ 18,369 $ 63,817 $ 41,881 $ 165,867

Current Period gross charge-offs $ - $ 38 $ - $ 2 $ - $ 1 $ - $ 41

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Commercial real estate:

Owner-occupied

Pass $ 33,907 $ 13,312 $ 18,663 $ 6,468 $ 5,279 $ 15,235 $ 1,574 $ 94,438

Special Mention - - - - 12,260 - - 12,260

Substandard - - - - 4,191 2,036 1,799 8,026

Doubtful - - - - - - - -

Total $ 33,907 $ 13,312 $ 18,663 $ 6,468 $ 21,730 $ 17,271 $ 3,373 $ 114,724

Current Period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ -

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Commercial real estate:

Nonowner-occupied

Pass $ 54,962 $ 35,753 $ 25,438 $ 37,616 $ 29,092 $ 68,754 $ 6,932 $ 258,547

Special Mention - - 1,603 - - - - 1,603

Substandard - - 4,956 963 - 3,216 - 9,135

Doubtful - - - - - - - -

Total $ 54,962 $ 35,753 $ 31,997 $ 38,579 $ 29,092 $ 71,970 $ 6,932 $ 269,285

Current Period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ -

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Commercial real estate:

Pass $ 34,799 $ 12,252 $ 9,561 $ 14,222 $ 1,203 $ 2,384 $ 4,300 $ 78,721

Special Mention - - - - - 19 - 19

Substandard - - 612 6,000 - - 676 7,288

Doubtful - - - - - - - -

Total $ 34,799 $ 12,252 $ 10,173 $ 20,222 $ 1,203 $ 2,403 $ 4,976 $ 86,028

Current Period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ -

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Commercial and Industrial

Pass $ 28,717 $ 8,759 $ 5,519 $ 20,266 $ 22,949 $ 38,192 $ 27,598 $ 152,000

Special Mention - - - - - - 2,550 2,550

Substandard - 380 469 33 141 6,293 5,233 12,549

Doubtful - - - - - - - -

Total $ 28,717 $ 9,139 $ 5,988 $ 20,299 $ 23,090 $ 44,485 $ 35,381 $ 167,099

Current Period gross charge-offs $ - $ 45 $ - $ 12 $ 58 $ - $ 45 $ 160

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses.

For residential and

consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

The following table presents the recorded investment of residential and consumer loans by class

of loans based on repayment activity as of March 31, 2026 and December 31, 2025:

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of June 30, 2026 and December 31, 2025:

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Residential Real Estate

Payment Performance

Performing $ 38,609 $ 73,640 $ 60,692 $ 47,098 $ 32,349 $ 150,496 $ 31,919 $ 434,803

Nonperforming - - 39 112 326 1,653 - 2,130

Total $ 38,609 $ 73,640 $ 60,731 $ 47,210 $ 32,675 $ 152,149 $ 31,919 $ 436,933

Current Period gross charge-offs $ - $ - $ 58 $ - $ - $ 24 $ - $ 82

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Payment Performance

Performing $ 5,635 $ 7,862 $ 5,624 $ 7,026 $ 4,320 $ 1,112 $ - $ 31,579

Nonperforming 3 87 42 43 82 29 - 286

Total $ 5,638 $ 7,949 $ 5,666 $ 7,069 $ 4,402 $ 1,141 $ - $ 31,865

Current Period gross charge-offs $ - $ 64 $ 98 $ 61 $ 37 $ 2 $ - $ 262

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Payment Performance

Performing $ 86 $ 91 $ 100 $ 106 $ - $ - $ 54,124 $ 54,507

Nonperforming - - - - - - 299 299

Total $ 86 $ 91 $ 100 $ 106 $ - $ - $ 54,423 $ 54,806

Current Period gross charge-offs $ - $ - $ - $ - $ - $ - $ 44 $ 44

Term Loans Amortized Cost Basis by Origination Year

March 31, 2026

Term Loans Amortized Costs Basis by Origination Year Amortized

June 30, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total

Payment Performance

Performing $ 7,928 $ 12,298 $ 4,658 $ 4,263 $ 3,360 $ 3,325 $ 12,967 $ 48,799

Nonperforming 1 23 20 36 1 15 - 96

Total $ 7,929 $ 12,321 $ 4,678 $ 4,299 $ 3,361 $ 3,340 $ 12,967 $ 48,895

Current Period gross charge-offs $ 342 $ 42 $ 70 $ 56 $ 9 $ 11 $ 148 $ 678

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Residential Real Estate

Payment Performance

Performing $ 70,687 $ 63,505 $ 51,608 $ 34,817 $ 41,803 $ 119,416 $ 34,002 $ 415,838

Nonperforming - 415 201 430 26 1,010 - 2,082

Total $ 70,687 $ 63,920 $ 51,809 $ 35,247 $ 41,829 $ 120,426 $ 34,002 $ 417,920

Current Period gross charge-offs $ - $ 100 $ - $ 15 $ 23 $ 15 $ - $ 153

NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Payment Performance

Performing $ 10,413 $ 7,814 $ 9,907 $ 6,831 $ 1,672 $ 393 $ - $ 37,030

Nonperforming 32 63 46 106 - - - 247

Total $ 10,445 $ 7,877 $ 9,953 $ 6,937 $ 1,672 $ 393 $ - $ 37,277

Current Period gross charge-offs $ 34 $ 251 $ 338 $ 118 $ 12 $ 16 $ - $ 769

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Payment Performance

Performing $ - $ 4 $ 19 $ - $ 100 $ 140 $ 50,024 $ 50,287

Nonperforming - - - - - - 318 318

Total $ - $ 4 $ 19 $ - $ 100 $ 140 $ 50,342 $ 50,605

Current Period gross charge-offs $ - $ - $ - $ - $ - $ - $ 31 $ 31

Term Loans Amortized Cost Basis by Origination Year

December 31, 2025

Term Loans Amortized Costs Basis by Origination Year Amortized

December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total

Payment Performance

Performing $ 11,889 $ 12,012 $ 6,005 $ 4,696 $ 3,425 $ 1,535 $ 13,403 $ 52,965

Nonperforming 3 40 23 23 7 19 - 115

Total $ 11,892 $ 12,052 $ 6,028 $ 4,719 $ 3,432 $ 1,554 $ 13,403 $ 53,080

Current Period gross charge-offs $ 346 $ 148 $ 162 $ 76 $ 73 $ 29 $ 376 $ 1,210

The Company originates residential, consumer, and commercial loans to customers located primarily in the southeastern areas of Ohio as well

as the western counties of West Virginia.

Approximately 3.68 % of total loans were unsecured at March 31, 2026, down from 3.73 % at December 31, 2025.

The Company originates residential, consumer, and commercial loans to

customers located primarily in the southeastern areas of Ohio as well as the

western counties of West Virginia.

Approximately 3.47 % of total loans were unsecured at June 30, 2026, down from 3.73 % at December 31, 2025

Modifications to Borrowers Experiencing Financial Difficulty:

Occasionally, the Company modifies loans to borrowers experiencing financial difficulty.

These modifications may include one or a

combination of the following:

These modifications may include one or a combination of the following:

a reduction of the stated interest rate of the loan;

an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk;

a reduction in the contractual

principal and interest payments of the loan;

a reduction in the contractual principal and interest payments of the loan;

or short-term interest-only payment terms.

N OTE 4 – LOANS AND ALLOWANCE FOR CREDIT

LOSSES (Continued)

During the three months ended March 31, 2026

and 2025, the Company experienced no new modifications to borrowers experiencing financial difficulty.

The following table presents the activity in the allowance for credit losses by portfolio segment for the three

months ended March 31, 2026 and

March 31 , 2026

and Industrial

N OTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

During the three and six months ended June 30, 2026 and 2025, the Company experienced no new modifications to borrowers

experiencing financial difficulty.

The following table presents the activity in the ACL by portfolio segment for the three months ended June 30, 2026 and 2025:

Residential Commercial Commercial

June 30, 2026 Real Estate Real Estate and Industrial Consumer Total

Allowance for credit losses:

2 unchanged sentences

Loans charged off ( 10 ) - ( 38 ) ( 455 ) ( 503 )

Recoveries 14 - 2 339 355

Total ending allowance balance $ 2,346 $ 8,110 $ 4,620 $ 1,534 $ 16,610

March 31 , 2025

and Industrial

Residential Commercial Commercial

June 30, 2025 Real Estate Real Estate and Industrial Consumer Total

Allowance for credit losses:

2 unchanged sentences

Loans charged-off ( 11 ) - - ( 611 ) ( 622 )

Recoveries 20 18 60 208 306

Total ending allowance balance $ 2,873 $ 4,228 $ 1,835 $ 1,920 $ 10,856

The following table presents the amortized cost basis of collateral dependent loans by class of loans as of March 31, 2026 and December 31, 2025:

The following table presents the activity in the ACL by portfolio

segment for the six months ended June 30, 2026 and 2025:

Residential Commercial Commercial

June 30, 2026 Real Estate Real Estate and Industrial Consumer Total

Allowance for credit losses:

Beginning balance $ 2,793 $ 5,331 $ 1,738 $ 1,657 $ 11,519

Provision for credit losses ( 395 ) 2,834 2,905 173 5,517

Loans charged off ( 82 ) ( 55 ) ( 41 ) ( 984 ) ( 1,162 )

Recoveries 30 - 18 688 736

Total ending allowance balance $ 2,346 $ 8,110 $ 4,620 $ 1,534 $ 16,610

Residential Commercial Commercial

June 30, 2025 Real Estate Real Estate and Industrial Consumer Total

Allowance for credit losses:

Beginning balance $ 2,684 $ 3,653 $ 1,536 $ 2,215 $ 10,088

Provision for credi losses 167 557 343 442 1,509

Loans charged-off ( 16 ) - ( 160 ) ( 1,137 ) ( 1,313 )

Recoveries 38 18 116 400 572

Total ending allowance balance $ 2,873 $ 4,228 $ 1,835 $ 1,920 $ 10,856

The following table presents the amortized cost basis of

collateral dependent loans by class of loans as of June 30, 2026 and December 31, 2025:

Collateral Type

March 31, 2026

Business Assets

June 30, 2026 Real Estate Business Assets Total

Residential real estate $ 384 $ - $ 384

2 unchanged sentences

Non-owner-occupied 8,515 - 8,515

Construction 676 - 676

Commercial and Industrial 627 4,491 5,118

Automobile - - -

Home equity 397 - 397

Total collateral dependent loans $ 15,346 $ 4,639 $ 19,985

N OTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Collateral Type

December 31, 2025

Business Assets

December 31, 2025 Real Estate Business Assets Total

Residential real estate $ 1,301 $ 544 $ 1,845

2 unchanged sentences

Non-Owner-occupied 5,062 - 5,062

Construction 7,288 - 7,288

Commercial & Industrial 543 1,257 1,800

Automobile - 14 14

Home equity 75 - 75

Other 39 21 60

Total collateral dependent loans $ 19,193 $ 1,976 $ 21,169

investment of a loan excludes accrued interest and net deferred origination fees and costs due to immateriality.

Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively

evaluated for impairment and individually classified as impaired loans.

The Company transfers loans to OREO, at fair value less cost to sell, in the period the Company obtains physical possession of the property

(through legal title or through a deed in lieu).

The Company had no OREO for residential real estate properties at March 31, 2026 and December 31, 2025.

addition, nonaccrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $ 534 and $ 788 as of March 31, 2026 and December 31, 2025, respectively.

The recorded investment of a loan excludes accrued interest and net deferred origination fees and costs due to immateriality.

Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified as impaired loans.

The Company transfers loans to OREO, at fair value

less cost to sell, in the period the Company obtains physical possession of the

property (through legal title or through a deed in lieu).

The Company had no OREO for residential

real estate properties at June 30, 2026 and December 31, 2025.

In addition, nonaccrual residential mortgage

loans that are in the process of foreclosure had a recorded investment of $ 784

and $ 788 as of June 30, 2026 and December 31, 2025, respectively.

NOTE 5 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its

These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for

commitments to extend credit and standby letters of credit, and financial guarantees written, is represented by the contractual amount of those instruments.

The contract amounts of these instruments are not included in the consolidated financial

At March 31, 2026,

the contract amounts of these instruments totaled approximately $ 232,139 , compared to $ 226,570 at December 31, 2025.

The Bank estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit.

At March 31, 2026, the estimated ACL related to off-balance sheet commitments was $ 791 , compared to $ 871 at December 31, 2025.

This includes an $ 80 recovery of provision expense during the three months ended March 31, 2026 compared to a $ 60 recovery in provision expense during the three months ended March 31, 2025.

The Bank uses the same credit policies in making commitments and conditional obligations as it does for instruments recorded on the

balance sheet.

Since many of these instruments are expected to expire without being drawn upon, the total contract amounts do not necessarily represent future cash requirements.

The Bank is a

party to financial instruments with off-balance sheet risk in the normal course

of business to meet the financing needs of its customers.

These financial instruments include

commitments to extend credit, standby letters of credit and financial

The Bank’s exposure to

credit loss in the event of nonperformance by the other party to the financial

instrument for commitments to extend credit and standby letters of credit, and

financial guarantees written, is represented by the contractual amount of those

The contract amounts of

these instruments are not included in the consolidated financial statements.

June 30, 2026, the contract amounts of these instruments totaled approximately

$ 228,736 , compared to $ 226,570 at December 31, 2025.

The Bank estimates expected credit losses

over the contractual period in which the Bank is exposed to credit risk via a

contractual obligation to extend credit.

At June 30, 2026, the estimated ACL related to off-balance sheet

commitments was $ 731 , compared to $ 871 at December 31, 2025.

This includes

provision expense recoveries of $ 60 and $ 140 during the three and six months

ended June 30, 2026, compared to $ 115 and $ 55 in provision expense during the

three and six months ended June 30, 2025, respectively.

The Bank uses the same

credit policies in making commitments and conditional obligations as it does

for instruments recorded on the balance sheet.

Since many of these instruments

are expected to expire without being drawn upon, the total contract amounts do

not necessarily represent future cash requirements.

[-- End "Note 5.

Financial Instruments with

off-Balance Sheet Risk" Segment --][-- Start "Note 6.

Other Borrowed Funds Q1"

NOTE 6 - OTHER BORROWED FUNDS

Other borrowed funds at March 31,

2026 and December 31, 2025 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes.

March 31 , 2026

Other borrowed funds at June 30, 2026 and December 31, 2025 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes.

FHLB Promissory

Borrowings Notes Totals

June 30, 2026 $ 39,656 $ 2,166 $ 41,822

December 31, 2025 $ 42,247 $ 2,601 $ 44,848

Pursuant to collateral agreements with the FHLB, advances are secured by $ 415,462 in qualifying mortgage loans, $ 33,766 in commercial loans and $ 3,118 in FHLB stock at March 31, 2026.

Fixed-rate FHLB advances of $ 40,893

mature through 2042 and have interest rates ranging from 1.53 % to 4.91 % and a year-to-date weighted average cost of 3.99 % at March 31, 2026 and 4.03 % at December 31, 2025.

There were no

variable-rate FHLB borrowings at March 31, 2026.

At March 31, 2026, the Company had a cash management line of credit enabling it to borrow up to $ 100,000 from the FHLB, subject to the stock ownership and collateral limitations described below.

All cash management advances have an original maturity of 90 days.

The line of credit must be renewed on an annual basis.

There was $ 100,000 available on this line of credit at March 31, 2026.

Based on the Company’s current FHLB stock ownership, total assets and pledgeable loans, the Company had the ability to obtain borrowings from

the FHLB up to a maximum of $ 261,624 at March 31,

Of this maximum borrowing capacity, the Company had $ 172,606 available to use as additional borrowings, of which $ 172,606 could be used for short term, cash management

advances, as mentioned above.

At March 31, 2026, the Company

had a federal funds line of credit with two correspondent banks totaling $ 25,000 .

The lines of credit are not committed and are provided at the discretion of the correspondent bank.

No collateral has been pledged to the lines of credit.

Any advance is

due to be repaid the next business day.

At March 31, 2026, there was $ 25,000 available on these lines of credit.

Promissory notes, issued primarily by Ohio Valley, are due at various dates through a final maturity date of March 11, 2027 , and have fixed rates ranging from 4.25 %

to 4.60 % and a year-to-date weighted average cost of 4.39 % at March 31, 2026, as compared to 4.49 % at December 31, 2025.

At March 31, 2026 and December 31, 2025, there were six promissory notes

payable by Ohio Valley to related parties totaling $ 2,636 .

There were no promissory notes payable to other banks at March 31, 2026 and December 31, 2025, respectively.

Letters of credit issued on the Bank’s behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $ 48,125 at March 31, 2026 and $ 52,000 at December 31, 2025.

Scheduled principal payments as of March 31, 2026:

Pursuant to collateral agreements with the FHLB, advances are

secured by $ 427,646 in qualifying mortgage loans, $ 31,972 in commercial loans

and $ 3,118 in FHLB stock at June 30, 2026.

Fixed-rate FHLB advances of $ 39,656 mature through 2042 and have

interest rates ranging from 1.53 % to 4.91 % and a year-to-date weighted average

cost of 3.99 % at June 30, 2026 and 4.03 % at December 31, 2025.

There were no variable-rate FHLB borrowings

at June 30, 2026.

At June 30, 2026, the Company had a cash management line of credit

enabling it to borrow up to $ 100,000 from the FHLB, subject to the stock

ownership and collateral limitations described below.

All cash management advances have an original

maturity of 90 days.

The line of credit

must be renewed on an annual basis.

There was $ 100,000 available on this line of credit at June 30, 2026.

Based on the Company's current FHLB stock ownership, total assets

and pledgeable loans, the Company had the ability to obtain borrowings from the

FHLB up to a maximum of $ 267,679 at June 30, 2026.

Of this maximum borrowing capacity, the

Company had $ 170,848 available to use as additional borrowings, of which

$ 170,848 could be used for short term, cash management advances, as mentioned

Furthermore, the Company pledged collateral to the FRB to

establish a borrowing line, which had availability of $ 35,665 at June 30, 2026.

At June 30, 2026, the Company had a federal funds line of credit

with two correspondent banks totaling $ 25,000 .

The lines of credit are not

committed and are provided at the discretion of the correspondent bank.

collateral has been pledged to the lines of credit.

Any advance is due to be

repaid the next business day.

At June 30, 2026, there was $ 25,000 available on

these lines of credit.

Promissory notes, issued primarily by Ohio Valley, are due at

various dates through a final maturity date of March 11, 2027 , and have fixed rates of 4.25 % and a

year-to-date weighted average cost of 4.43 % at June 30, 2026, as compared to 4.49 % at December 31, 2025.

At June 30, 2026, there were five promissory notes payable by

Ohio Valley to related parties totaling $ 2,166 , as compared to six promissory notes

totaling $ 2,601 at December 31, 2025.

There were no promissory notes payable to other banks at June 30, 2026 and December 31, 2025, respectively.

Letters of credit issued on the Bank’s behalf by the FHLB to

collateralize certain public unit deposits as required by law totaled $ 57,175

at June 30, 2026 and $ 52,000 at December 31, 2025.

Scheduled principal payments as of June 30, 2026:

FHLB Promissory

Borrowings Notes Totals

2026 $ 10,740 $ 431 $ 11,171

2027 21,396 1,735 23,131

2028 1,349 - 1,349

2029 1,319 - 1,319

2030 1,599 - 1,599

Thereafter 3,253 - 3,253

$ 39,656 $ 2,166 $ 41,822

NOTE 7 – LEASES

Substantially all of the Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent leases for branch

Substantially all of the Company’s operating lease right-of-use

(“ROU”) assets and operating lease liabilities represent leases for branch

buildings and office space to conduct business.

Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.

The lease expense for these leases is recorded on a straight-line basis over the lease term.

with initial terms in excess of 12 months are recorded as either operating or financing leases on the consolidated balance sheet.

The Company has no finance lease arrangements.

Operating leases have remaining lease terms ranging from 1 month to 15.3 years, some of which include

options to extend the leases for up to 15 years .

Operating lease ROU assets and operating lease liabilities are valued based on the present

value of future minimum lease payments, discounted with an incremental borrowing rate for the same term as the underlying lease.

The Company has one lease arrangement that contains variable lease payments that are adjusted periodically for an index.

Leases with an initial

term of 12 months or less are not recorded on the consolidated balance sheet.

The lease expense for these leases is recorded on a straight-line basis over

the lease term.

Leases with initial terms in excess of 12 months are recorded

as either operating or financing leases on the consolidated balance sheet.

Company has no finance lease arrangements.

Operating leases have remaining

lease terms ranging from 4.1 years to 15.1 years, some of

which include options to extend the leases for up to 15 years.

Operating lease ROU assets and operating lease

liabilities are valued based on the present value of future minimum lease

payments, discounted with an incremental borrowing rate for the same term as

the underlying lease.

The Company has one lease arrangement that contains

variable lease payments that are adjusted periodically for an index.

Balance sheet information related to leases is as follows:

June 30, December 31,

Operating leases:

2 unchanged sentences

The components of lease cost were as follows:

Three months ended

Three months ended Six months ended

June 30, June 30,

2026 2025 2026 2025

Operating lease cost $ 49 $ 49 $ 103 $ 98

Short-term lease expense 2 2 2 9

Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2026 are as follows:

Future undiscounted lease payments for operating leases with initial terms of one year or more as of June 30, 2026 are as follows:

2026 (remaining) $ 90

Thereafter 1,096

Total lease payments 1,908

2 unchanged sentences

Other information was as follows:

Weighted-average remaining lease term for operating leases

June 30, December 31,

Weighted-average remaining lease term for operating leases 11.5 years 10.7 years

Weighted-average discount rate for operating leases 3.53 % 2.85 %

NOTE 8 – RISKS AND UNCERTAINTIES

The risks pertinent to the Bank regarding liquidity and rising deposit costs have increased due to an elevated interest rate environment and

increased deposit competition within our markets.

The risks pertinent to the Bank regarding liquidity and rising deposit costs have increased due to an elevated interest rate environment and increased deposit competition within our markets.

Our liquidity position is supported by the management of liquid assets such as cash and interest-bearing deposits with banks, and liabilities such as core deposits.

The Bank can also access other

sources of funds such as brokered deposits and FHLB advances.

With the present economic conditions putting a strain on liquidity and higher borrowing costs, the Company believes it has sufficient liquid assets and funding sources should there be a

liquidity need.

The Bank can also access other sources of funds such as brokered deposits and FHLB advances.

With the present economic conditions putting a strain on liquidity and higher borrowing costs, the Company believes it has sufficient liquid assets and funding sources should there be a liquidity need.

NOTE 9 – DEPOSITS

Deposits are comprised of the following:

June 30, December 31,

Noninterest-bearing deposits $ 319,288 $ 314,131

Interest-bearing deposits:

Negotiable order of withdrawal accounts 222,929 218,432

Savings and money market 333,339 307,368

3 unchanged sentences

Total deposits $ 1,408,428 $ 1,329,667

Brokered deposits, included in time deposits, were $ 68,957

and $ 61,464 at March 31, 2026 and December 31, 2025, respectively.

Brokered deposits, included in time deposits, were $ 45,754 and $ 61,464 at June 30, 2026 and December 31, 2025, respectively.

NOTE 10 – REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue is segregated based on the nature of products and services offered as part of contractual arrangements.

Revenue from contracts with customers within

the scope of ASC 606 is broadly segregated within the following noninterest income categories:

• Service charges on deposit accounts – These include

general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer, or overdraft activities.

Revenue is recognized when the performance obligation is

completed, which is generally after a transaction is completed or monthly for account maintenance services.

• Trust fees - This includes periodic fees due from

trust customers for managing the customers' financial assets.

Revenue from contracts with customers within the scope of ASC 606 is broadly segregated within the following noninterest income categories:

• Service charges on deposit accounts – These include general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer, or overdraft activities.

Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services.

• Trust fees - This includes periodic fees due from trust customers for managing the customers' financial assets.

Fees are generally charged on a quarterly or annual basis and are recognized ratably throughout the period, as the services are provided on an ongoing basis.

• Electronic refund check/deposit fees – A tax refund

clearing agreement between the Bank and a tax refund processor requires the Bank to process electronic refund checks and electronic refund deposits presented for payment on behalf of taxpayers through accounts containing taxpayer refunds.

in turn, receives a fee paid by the third -party tax refund processor for each transaction that is processed.

The amount of fees received are tiered based on the

tax refund product selected.

• Electronic refund check/deposit fees – A tax refund clearing agreement between the Bank and a tax refund processor requires the Bank to process electronic refund checks and electronic refund deposits presented for payment on behalf of taxpayers through accounts containing taxpayer refunds.

The Bank, in turn, receives a fee paid by the third-party tax refund processor for each transaction that is processed.

The amount of fees received is tiered based on the tax refund product selected.

Since the Bank acts as a sub servicer in the tax process relationship, a portion of the fee collected is passed on to the tax refund processor.

The tax refund clearing agreement, and associated revenue recognized, ended

• Debit/credit card interchange income – This includes

interchange income from cardholder transactions conducted with merchants, throughout various interchange networks with which the Company participates.

Interchange fees from cardholder transactions represent a percentage of the underlying transaction

value and are recognized daily, as transaction processing services are provided to the deposit customer.

The tax refund clearing agreement, and associated revenue recognized, ended in 2025.

• Debit/credit card interchange income – This includes interchange income from cardholder transactions conducted with merchants, throughout various interchange networks with which the Company participates.

Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, as transaction processing services are provided to the deposit customer.

Gross fees from interchange are recorded in operating income separately from gross network costs, which are recorded in operating expense.

• Tax preparation fees – This includes fees received by

tax preparation customers of Loan Central as part of the Bank’s TAL business.

After Loan Central prepares a customer’s tax return, the customer is offered the opportunity to have immediate access to a portion of the anticipated tax refund by entering

into a TAL with the Bank.

• Tax preparation fees – This includes fees received by tax preparation customers of Loan Central as part of the Bank’s Tax Refund Advance Loans ("TAL") business.

After Loan Central prepares a customer’s tax return, the customer is offered the opportunity to have immediate access to a portion of the anticipated tax refund by entering into a TAL with the Bank.

As part of the process, the tax customer completes a loan application and authorizes the expected tax refund to be deposited with the Bank once it is issued by the IRS.

Once the Bank receives the tax refund, the refund is

used to repay the TAL and Loan Central’s tax preparation fees, then the remainder of the refund is remitted to Loan Central’s tax customer.

Once the Bank receives the tax refund, the refund is used to repay the TAL and Loan Central’s tax preparation fees, then the remainder of the refund is remitted to Loan Central’s tax customer.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements