Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated (dollars in thousands):

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of September 30, 2025 and December 31, 2024, foreclosed real estate owned totaled $771,000 and $0, respectively. During the three and nine months ended September 30, 2025, there were two additions to the foreclosed real estate category. As of September 30, 2025, the Company has initiated formal foreclosure proceedings on five properties classified as consumer residential mortgages with an aggregate carrying value of $259,000.

The following tables show the amount of loans in each category that were individually and collectively evaluated for credit loss:



	Real Estate Loans
									Commercial			Other	Consumer
	Residential		Commercial			Agricultural	Construction		Loans			Agricultural	Loans		Total
	(In thousands)
December 31, 2024
Individually evaluated	$	940	$	7,197	$	—	$	—	$	854	$	—	$	1,031	$	10,022
Collectively evaluated		329,916		709,678		63,488		53,020		211,137		30,077		306,744		1,704,060
Total Loans	$	330,856	$	716,875	$	63,488	$	53,020	$	211,991	$	30,077	$	307,775	$	1,714,082

Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review, in conjunction with a third-party consultant, also annually reviews all criticized credits and relationships of $1,500,000 and over to re-affirm risk ratings.

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of September 30, 2025 and December 31, 2024 (in thousands):



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing			Non-accrual	Total Past Due and Non-Accrual		Total Loans
September 30, 2025
Real Estate loans
Residential	$	338,303	$	368	$	249	$	-	$	1,077	$	1,694	$	339,997
Commercial		733,032		483		-		-		4,018		4,501		737,533
Agricultural		60,041		592		47		-		-		639		60,680
Construction		80,261		-		-		-		50		50		80,311
Commercial loans		223,034		333		24		-		69		426		223,460
Other agricultural loans		26,027		208		-		25		-		233		26,260
Consumer loans		344,738		505		303		-		1,351		2,159		346,897
Total	$	1,805,436	$	2,489	$	623	$	25	$	6,565	$	9,702	$	1,815,138



	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing			Non-accrual	Total Past Due and Non-Accrual			Total Loans
December 31, 2024
Real Estate loans
Residential	$	329,578	$	70	$	268	$	-	$	940	$	1,278	$	330,856
Commercial		709,821		1,182		129		-		5,743		7,054		716,875
Agricultural		63,488		-		-				-		-		63,488
Construction		53,009		11		-		-		-		11		53,020
Commercial loans		211,520		194		117		33		127		471		211,991
Other agricultural loans		30,028		49		-		-		-		49		30,077
Consumer loans		305,676		805		263		121		910		2,099		307,775
Total	$	1,703,120	$	2,311	$	777	$	154	$	7,720	$	10,962	$	1,714,082

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the allowance for credit losses. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the allowance.

The following table presents the allowance for credit losses by the classes of the loan portfolio:


(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural Real Estate		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2024	$	1,146	$	11,406	$	48	$	884	$	1,732	$	162	$	4,465	$	19,843
Charge Offs		(63)		(62)		-		-		(83)		(48)		(1,273)		(1,529)
Recoveries		3		8		-		-		99		-		115		225
(Release of) Provision for credit losses		31		(1,952)		(25)		432		339		64		2,483		1,372
Ending balance, September 30, 2025	$	1,117	$	9,400	$	23	$	1,316	$	2,087	$	178	$	5,790	$	19,911
Ending balance individually evaluated	$	-	$	294	$	-	$	-	$	-	$	-	$	395	$	689
Ending balance collectively evaluated	$	1,117	$	9,106	$	23	$	1,316	$	2,087	$	178	$	5,395	$	19,222


(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural Real Estate		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, June 30, 2025	$	1,011	$	11,039	$	39	$	1,163	$	1,933	$	164	$	5,559	$	20,908
Charge Offs		(63)		(13)		-		-		(83)		-		(490)		(649)
Recoveries		3		8		-		-		3		-		30		44
(Release of) Provision for credit losses		166		(1,634)		(16)		153		234		14		691		(392)
Ending balance, September 30, 2025	$	1,117	$	9,400	$	23	$	1,316	$	2,087	$	178	$	5,790	$	19,911



(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural Real Estate		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, December 31, 2023	$	1,351	$	11,871	$	58	$	933	$	1,207	$	94	$	3,454	$	18,968
Charge Offs		-		-		-		-		(85)		-		(1,297)		(1,382)
Recoveries		42		106		-		-		-		-		77		225
(Release of) Provision for credit losses		(344)		(1,511)		(32)		(77)		772		38		2,042		888
Ending balance, September 30, 2024	$	1,049	$	10,466	$	26	$	856	$	1,894	$	132	$	4,276	$	18,699
Ending balance individually evaluated ‎for impairment	$	-	$	4	$	-	$	-	$	-	$	-	$	235	$	239
Ending balance collectively evaluated ‎for impairment	$	1,049	$	10,462	$	26	$	856	$	1,894	$	132	$	4,041	$	18,460



(In thousands)	Residential Real Estate		Commercial Real Estate			Agricultural Real Estate		Construction	Commercial			Other Agricultural	Consumer		Total
Beginning balance, June 30, 2024	$	1,131	$	9,552	$	41	$	840	$	2,035	$	130	$	4,077	$	17,806
Charge Offs		-		-		-		-		-		-		(358)		(358)
Recoveries		-		2		-		-		-		-		33		35
(Release of) Provision for credit losses		(82)		912		(15)		16		(141)		2		524		1,216
Ending balance, September 30, 2024	$	1,049	$	10,466	$	26	$	856	$	1,894	$	132	$	4,276	$	18,699

During the nine months ended September 30, 2025, the Company recorded a provision for credit losses related to loans totaling $1,372,000. The increase in provision was due primarily to an increase in the consumer portfolio provision of $2,483,000, offset by a release of provision of $1,952,000 in the commercial real estate portfolio, and an increase of $841,000 in all other portfolios, net. Factors impacting the provision include changes in the cumulative loss rates applied to the respective loan pools due to loss activity being added or subtracted with the passage of time, and variances in Qualitative Factors and Economic Factors.

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience. The Company chose to apply qualitative factors based on “quantitative metrics” which link the quantifiable metrics to historical changes in the qualitative factor categories. The Company also chose to apply economic projections to the model. A select group of economic indicators was utilized which was then correlated to the historical loss experience of the Company and its peers. Based on the correlation results, the economic adjustments are then weighted for relevancy and applied to the individual loan pools.

The following table presents the carrying value of loans on nonaccrual status and loans past due over 90 days still accruing interest (in thousands):


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
September 30, 2025
Real Estate loans
Residential	$	1,077	$	-	$	1,077	$	-	$	1,077
Commercial		3,998		20		4,018		-		4,018
Agricultural		-		-		-		-		-
Construction		50		-		50		-		50
Commercial loans		69		-		69		-		69
Other agricultural loans		-		-		-		25		25
Consumer loans		358		993		1,351		-		1,351
Total	$	5,552	$	1,013	$	6,565	$	25	$	6,590


		Nonaccrual		Nonaccrual				Loans Past Due
		with no		with		Total		Over 90 Days		Total
	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming
December 31, 2024
Real Estate loans
Residential	$	936	$	4	$	940	$	-	$	940
Commercial		5,739		4		5,743		-		5,743
Agricultural		-		-		-		-		-
Construction		-		-		-		-		-
Commercial loans		127		-		127		33		160
Other agricultural loans		-		-		-		-		-
Consumer loans		570		340		910		121		1,031
Total	$	7,372	$	348	$	7,720	$	154	$	7,874

Based on the most recent analysis performed, the following table presents the recorded investment in non-homogenous pools by internal risk rating systems (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
September 30, 2025		2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	87,169	$	99,681	$	69,980	$	116,116	$	88,223	$	243,881	$	18,745	$	-	$	723,795
Special Mention		-		-		-		205		2,036		1,089		-		-		3,330
Substandard		-		135		-		-		2,446		7,427		400		-		10,408
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	87,169	$	99,816	$	69,980	$	116,321	$	92,705	$	252,397	$	19,145	$	-	$	737,533

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	62	$	-	$	-	$	62

Real Estate - Agriculture
Risk Rating
Pass	$	2,984	$	5,140	$	3,470	$	10,904	$	3,736	$	31,936	$	345	$	-	$	58,515
Special Mention		154		865		-		-		-		1,139		-		-		2,158
Substandard		-		-		-		-		-		-		7		-		7
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	3,138	$	6,005	$	3,470	$	10,904	$	3,736	$	33,075	$	352	$	-	$	60,680

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	52,595	$	42,889	$	26,293	$	25,747	$	13,748	$	19,565	$	39,572	$	-	$	220,409
Special Mention		35		-		-		23		-		-		14		-		72
Substandard		-		-		259		334		588		798		1,000		-		2,979
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	52,630	$	42,889	$	26,552	$	26,104	$	14,336	$	20,363	$	40,586	$	-	$	223,460

Commercial loans
Current period gross charge-offs	$	-	$	-	$	-	$	60	$	23	$	-	$	-	$	-	$	83

Other agricultural loans
Risk Rating
Pass	$	2,289	$	2,892	$	1,434	$	2,560	$	2,151	$	3,676	$	7,271	$	-	$	22,273
Special Mention		-		370		-		-		-		1,342		800		-		2,512
Substandard		-		-		-		-		-		-		1,475		-		1,475
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,289	$	3,262	$	1,434	$	2,560	$	2,151	$	5,018	$	9,546	$	-	$	26,260

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	48	$	-	$	-	$	48

Total
Risk Rating
Pass	$	145,037	$	150,602	$	101,177	$	155,327	$	107,858	$	299,058	$	65,933	$	-	$	1,024,992
Special Mention		189		1,235		-		228		2,036		3,570		814		-		8,072
Substandard		-		135		259		334		3,034		8,225		2,882		-		14,869
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	145,226	$	151,972	$	101,436	$	155,889	$	112,928	$	310,853	$	69,629	$	-	$	1,047,933

‎


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Commercial real estate
Risk Rating
Pass	$	102,773	$	74,242	$	121,881	$	104,720	$	60,941	$	217,435	$	20,829	$	-	$	702,821
Special Mention		5		-		262		-		-		2,148		-		-		2,415
Substandard		135		-		-		2,461		1,405		7,238		400		-		11,639
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	102,913	$	74,242	$	122,143	$	107,181	$	62,346	$	226,821	$	21,229	$	-	$	716,875

Commercial real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Real Estate - Agriculture
Risk Rating
Pass	$	6,257	$	3,756	$	12,036	$	3,960	$	7,148	$	29,038	$	336	$	-	$	62,531
Special Mention		-		-		-		-		-		773		150		-		923
Substandard		-		-		-		-		-		-		34		-		34
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	6,257	$	3,756	$	12,036	$	3,960	$	7,148	$	29,811	$	520	$	-	$	63,488

Real Estate - Agriculture
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk Rating
Pass	$	57,939	$	34,088	$	29,465	$	19,163	$	10,233	$	15,042	$	42,906	$	-	$	208,836
Special Mention		-		-		25		-		-		106		14		-		145
Substandard		-		277		429		711		-		743		850		-		3,010
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	57,939	$	34,365	$	29,919	$	19,874	$	10,233	$	15,891	$	43,770	$	-	$	211,991

Commercial loans
Current period gross charge-offs	$	-	$	11	$	-	$	-	$	8	$	51	$	30	$	-	$	100

Other agricultural loans
Risk Rating
Pass	$	4,358	$	1,836	$	3,721	$	2,379	$	2,134	$	4,353	$	9,697	$	-	$	28,478
Special Mention		-		-		-		-		-		127		-		-		127
Substandard		-		-		-		-		-		-		1,472		-		1,472
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	4,358	$	1,836	$	3,721	$	2,379	$	2,134	$	4,480	$	11,169	$	-	$	30,077

Other agricultural loans
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk Rating
Pass	$	171,327	$	113,922	$	167,103	$	130,222	$	80,456	$	265,868	$	73,768	$	-	$	1,002,666
Special Mention		5		-		287		-		-		3,154		164		-		3,610
Substandard		135		277		429		3,172		1,405		7,981		2,756		-		16,155
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	171,467	$	114,199	$	167,819	$	133,394	$	81,861	$	277,003	$	76,688	$	-	$	1,022,431

The Company monitors the credit risk profile by payment activity for residential and consumer loan classes. Loans past due over 90 days and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed monthly. The following table presents the carrying value of residential and consumer loans based on payment activity (in thousands):


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
September 30, 2025		2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	15,317	$	36,098	$	39,157	$	55,459	$	48,761	$	110,550	$	33,578	$	-	$	338,920
Nonperforming		-		-		125		151		170		612		19		-		1,077
Total	$	15,317	$	36,098	$	39,282	$	55,610	$	48,931	$	111,162	$	33,597	$	-	$	339,997

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	63	$	-	$	-	$	63

Construction
Payment Performance
Performing	$	20,134	$	32,025	$	15,635	$	8,662	$	328	$	105	$	3,372	$	-	$	80,261
Nonperforming		-		-		-		50		-		-		-		-		50
Total	$	20,134	$	32,025	$	15,635	$	8,712	$	328	$	105	$	3,372	$	-	$	80,311

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	110,587	$	103,481	$	69,058	$	37,566	$	10,717	$	12,747	$	1,390	$	-	$	345,546
Nonperforming		73		308		414		409		60		87		-		-		1,351
Total	$	110,660	$	103,789	$	69,472	$	37,975	$	10,777	$	12,834	$	1,390	$	-	$	346,897

Consumer loans to individuals
Current period gross charge-offs	$	6	$	325	$	383	$	337	$	108	$	114	$	-	$	-	$	1,273

Total
Payment Performance
Performing	$	146,038	$	171,604	$	123,850	$	101,687	$	59,806	$	123,402	$	38,340	$	-	$	764,727
Nonperforming		73		308		539		610		230		699		19		-		2,478
Total	$	146,111	$	171,912	$	124,389	$	102,297	$	60,036	$	124,101	$	38,359	$	-	$	767,205


														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
December 31, 2024		2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
Residential real estate
Payment Performance
Performing	$	22,842	$	41,384	$	60,194	$	52,712	$	32,161	$	89,965	$	30,658	$	-	$	329,916
Nonperforming		-		125		52		184		-		560		19		-		940
Total	$	22,842	$	41,509	$	60,246	$	52,896	$	32,161	$	90,525	$	30,677	$	-	$	330,856

Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Payment Performance
Performing	$	28,817	$	12,986	$	9,024	$	431	$	-	$	144	$	1,618	$	-	$	53,020
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	28,817	$	12,986	$	9,024	$	431	$	-	$	144	$	1,618	$	-	$	53,020

Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans to individuals
Payment Performance
Performing	$	125,254	$	93,392	$	52,009	$	15,679	$	8,316	$	11,207	$	887	$	-	$	306,744
Nonperforming		97		401		377		114		26		16		-		-		1,031
Total	$	125,351	$	93,793	$	52,386	$	15,793	$	8,342	$	11,223	$	887	$	-	$	307,775

Consumer loans to individuals
Current period gross charge-offs	$	123	$	511	$	850	$	203	$	87	$	75	$	-	$	-	$	1,849

Total
Payment Performance
Performing	$	176,913	$	147,762	$	121,227	$	68,822	$	40,477	$	101,316	$	33,163	$	-	$	689,680
Nonperforming		97		526		429		298		26		576		19		-		1,971
Total	$	177,010	$	148,288	$	121,656	$	69,120	$	40,503	$	101,892	$	33,182	$	-	$	691,651

Occasionally, the Bank modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Bank provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. During the nine months ended September 30, 2025, there were modifications made to borrowers experiencing financial difficulty consisting of eight loan relationships. The following table presents modifications made to borrowers experiencing financial difficulty:


Significant Payment Delay

		Amortized Cost Basis at September 30, 2025	% of Total Class of Financing Receivable		Financial Effect
		(in thousands)
Commercial real estate loans	$	1,214	0.16	%	Deferred principal for 3-6 months
Commercial loans		832	0.37		Deferred principal for 3-6 months
Consumer loans to individuals		5	—		Deferred principal for 4 months

Total	$	2,051

Term Extension

		Amortized Cost Basis at September 30, 2025	% of Total Class of Financing Receivable		Financial Effect
		(in thousands)
Residential real estate loans	$	49	0.01	%	Added a weighted-average 10.0 years to the life of loans
Commercial real estate loans		831	0.11		Added a weighted-average 6.0 months to the life of loans
Commercial loans		273	0.12		Added a weighted-average 5.0 years to the life of loans

Total	$	1,153


Combination -Significant Payment Delay and Term Extension

		Amortized Cost Basis at September 30, 2025	% of Total Class of Financing Receivable		Financial Effect

Commercial real estate loans	$	4,264	0.58		Deferred principal for 3-9 months and extended term by 9 months
Commercial loans		127	0.06	%	Deferred principal for 4 months and extended term by 4 months

Total	$	4,391

Of the modifications made to borrowers experiencing financial difficulty, there were none that had a payment default during the period.

The Company’s primary business activity as of September 30, 2025 was with customers located in northeastern Pennsylvania and the New York counties of Delaware, Sullivan, Ontario, Otsego and Yates. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to repay their loans is influenced by the region’s economy.

As of September 30, 2025, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in commercial rentals with $169.6 million of loans outstanding, or 9.4% of total loans outstanding, and residential rentals with loans outstanding of $116.6 million, or 6.5% of loans outstanding. For the nine months ended September 30, 2025, the Company recognized charge offs of $0 on commercial rentals and $0 on residential rentals. The following table presents additional details regarding the company’s largest loan concentrations by industry as of September 30, 2025 (in thousands):