v3.25.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Amortized Cost and Unpaid Principal Balance of Loans by Loan Segment
The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:
June 30, 2025December 31, 2024
(In Thousands)Amortized CostUnpaid PrincipalDifferenceAmortized CostUnpaid PrincipalDifference
Commercial & industrial loans$486,231 $488,621 ($2,390)$437,922 $440,163 ($2,241)
Commercial real estate:
Owner occupied properties445,497 447,561 (2,064)418,092 420,060 (1,968)
Non-owner occupied and multifamily properties692,573 696,766 (4,193)615,662 619,431 (3,769)
Residential real estate:
1-4 family residential properties secured by first liens206,825 206,905 (80)270,966 270,535 431 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens60,611 60,118 493 49,160 48,857 303 
1-4 family residential construction loans35,777 36,005 (228)39,516 39,789 (273)
Other construction, land development and raw land loans186,007 187,442 (1,435)212,561 214,068 (1,507)
Obligations of states and political subdivisions in the US31,479 31,477 2 29,471 29,468 3 
Agricultural production, including commercial fishing46,340 46,535 (195)45,840 46,069 (229)
Consumer loans7,663 7,570 93 7,638 7,562 76 
Other loans3,112 3,120 (8)2,435 2,448 (13)
Total2,202,115 2,212,120 (10,005)2,129,263 2,138,450 (9,187)
Allowance for credit losses(22,585)(22,020)
   Net loans$2,179,530 $2,212,120 ($10,005)$2,107,243 $2,138,450 ($9,187)
Allowance for Credit Losses
The table below presents activity in the ACL related to loans held for investment for the periods indicated.
Three Months Ended June 30,Beginning BalanceCredit Loss Expense (Benefit)Charge-offsRecoveriesEnding Balance
(In Thousands)
2025    
Commercial & industrial loans$7,387 $268 ($152)$5 $7,508 
Commercial real estate:
Owner occupied properties2,442 (171)— — 2,271 
Non-owner occupied and multifamily properties3,956 227 — — 4,183 
Residential real estate:
1-4 family residential properties secured by first liens4,056 637 — — 4,693 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens769 152 — 7 928 
1-4 family residential construction loans219 51 — — 270 
Other construction, land development and raw land loans1,706 602 — — 2,308 
Obligations of states and political subdivisions in the US123 12 — — 135 
Agricultural production, including commercial fishing187 10 — — 197 
Consumer loans71 11 (3)3 82 
Other loans6 4 — — 10 
Total$20,922 $1,803 ($155)$15 $22,585 
2024
Commercial & industrial loans$4,052 ($22)$— $17 $4,047 
Commercial real estate:
Owner occupied properties2,893 70 — — 2,963 
Non-owner occupied and multifamily properties3,419 80 — — 3,499 
Residential real estate:
1-4 family residential properties secured by first liens3,425 64 — — 3,489 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens581 80 — 4 665 
1-4 family residential construction loans159 21 — — 180 
Other construction, land development and raw land loans2,675 (149)— — 2,526 
Obligations of states and political subdivisions in the US105 (5)— — 100 
Agricultural production, including commercial fishing156 (4)— 5 157 
Consumer loans60 1 — — 61 
Other loans8 (1)— — 7 
Total$17,533 $135 $— $26 $17,694 
Six Months Ended June 30,Beginning BalanceCredit Loss Expense (Benefit)Charge-offsRecoveriesEnding Balance
(In Thousands)
2025    
Commercial & industrial loans$5,800 $1,818 ($189)$79 $7,508 
Commercial real estate:
Owner occupied properties2,944 (673)— — 2,271 
Non-owner occupied and multifamily properties3,967 216 — — 4,183 
Residential real estate:
1-4 family residential properties secured by first liens4,364 329 — — 4,693 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens775 139 — 14 928 
1-4 family residential construction loans230 40 — — 270 
Other construction, land development and raw land loans3,589 (1,281)— — 2,308 
Obligations of states and political subdivisions in the US106 29 — — 135 
Agricultural production, including commercial fishing169 25 — 3 197 
Consumer loans71 24 (16)3 82 
Other loans5 5 — — 10 
Total$22,020 $671 ($205)$99 $22,585 
2024
Commercial & industrial loans$3,438 $532 $— $77 $4,047 
Commercial real estate:
Owner occupied properties2,867 96 — — 2,963 
Non-owner occupied and multifamily properties3,294 205 — — 3,499 
Residential real estate:
1-4 family residential properties secured by first liens3,470 19 — — 3,489 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens551 104 — 10 665 
1-4 family residential construction loans191 (11)— — 180 
Other construction, land development and raw land loans3,127 (601)— — 2,526 
Obligations of states and political subdivisions in the US80 20 — — 100 
Agricultural production, including commercial fishing168 9 (25)5 157 
Consumer loans81 (21)— 1 61 
Other loans3 4 — — 7 
Total$17,270 $356 ($25)$93 $17,694 
Schedule of Financing Receivables For Gross Charge-Offs By Grade And Year Of Loan Origination
The following table shows gross charge-offs by year of loan origination for the periods indicated:
Six Months Ended June 30,
(In Thousands)20252024202320222021PriorTotal
2025
Commercial & industrial loans$— $152 $— $— $37 $— $189 
Consumer loans— — 6 — — 10 16 
Total$— $152 $6 $— $37 $10 $205 
The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.

June 30, 202520252024202320222021PriorTotal
(In Thousands)
Commercial & industrial loans
Pass$53,042 $97,462 $67,047 $106,048 $36,135 $81,015 $440,749 
Criticized766 3,819 6,779 16,615 10,467 7,036 45,482 
Total commercial & industrial loans$53,808 $101,281 $73,826 $122,663 $46,602 $88,051 $486,231 
Commercial real estate:
Owner occupied properties
Pass$22,786 $83,781 $47,458 $70,085 $57,289 $142,440 $423,839 
Criticized6,002 — — 3,739 — 11,917 21,658 
Total commercial real estate owner occupied properties$28,788 $83,781 $47,458 $73,824 $57,289 $154,357 $445,497 
Non-owner occupied and multifamily properties
Pass$50,479 $119,227 $67,539 $140,597 $79,591 $224,118 $681,551 
Criticized— — — 1,152 — 9,870 11,022 
Total commercial real estate non-owner occupied and multifamily properties$50,479 $119,227 $67,539 $141,749 $79,591 $233,988 $692,573 
Residential real estate:
1-4 family residential properties secured by first liens
Pass$963 $68,021 $87,706 $35,881 $3,060 $10,181 $205,812 
Criticized— — 518 314 — 181 1,013 
Total residential real estate 1-4 family residential properties secured by first liens$963 $68,021 $88,224 $36,195 $3,060 $10,362 $206,825 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass$11,047 $20,250 $12,358 $5,880 $2,671 $7,957 $60,163 
Criticized— — 372 — — 76 448 
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$11,047 $20,250 $12,730 $5,880 $2,671 $8,033 $60,611 
1-4 family residential construction loans
Pass$14,542 $12,561 $413 $— $— $8,261 $35,777 
Criticized— — — — — — — 
Total residential real estate 1-4 family residential construction loans$14,542 $12,561 $413 $— $— $8,261 $35,777 
Other construction, land development and raw land loans
Pass$27,388 $61,777 $64,431 $14,141 $9,042 $7,653 $184,432 
Criticized— — — — 28 1,547 1,575 
Total other construction, land development and raw land loans$27,388 $61,777 $64,431 $14,141 $9,070 $9,200 $186,007 
Obligations of states and political subdivisions in the US
Pass$— $3,530 $— $27,949 $— $— $31,479 
Criticized— — — — — — — 
Total obligations of states and political subdivisions in the US$— $3,530 $— $27,949 $— $— $31,479 
Agricultural production, including commercial fishing
Pass$1,490 $8,035 $9,311 $7,882 $15,274 $4,211 $46,203 
Criticized— — — — 137 — 137 
Total agricultural production, including commercial fishing$1,490 $8,035 $9,311 $7,882 $15,411 $4,211 $46,340 
Consumer loans
Pass$1,713 $2,368 $1,893 $596 $57 $1,007 $7,634 
Criticized— — — 4 — 25 29 
Total consumer loans$1,713 $2,368 $1,893 $600 $57 $1,032 $7,663 
Other loans
Pass$— $— $1,496 $94 $280 $1,242 $3,112 
Criticized— — — — — — — 
Total other loans$— $— $1,496 $94 $280 $1,242 $3,112 
Total loans
Pass$183,450 $477,012 $359,652 $409,153 $203,399 $488,085 $2,120,751 
Criticized6,768 3,819 7,669 21,824 10,632 30,652 81,364 
Total loans$190,218 $480,831 $367,321 $430,977 $214,031 $518,737 $2,202,115 
Total pass loans$183,450 $477,012 $359,652 $409,153 $203,399 $488,085 $2,120,751 
Government guarantees (9,133)(40,990)(19,032)(4,967)(12,838)(17,871)(104,831)
Total pass loans, net of government guarantees$174,317 $436,022 $340,620 $404,186 $190,561 $470,214 $2,015,920 
Total criticized loans$6,768 $3,819 $7,669 $21,824 $10,632 $30,652 $81,364 
Government guarantees— — (1,568)(17,056)(9,427)(12,722)(40,773)
Total criticized loans, net government guarantees$6,768 $3,819 $6,101 $4,768 $1,205 $17,930 $40,591 

December 31, 202420242023202220212020PriorTotal
(In Thousands)
Commercial & industrial loans
Pass$112,361 $70,871 $120,377 $37,628 $10,581 $40,288 $392,106 
Criticized201 3,386 16,888 14,973 5,759 4,609 45,816 
Total commercial & industrial loans$112,562 $74,257 $137,265 $52,601 $16,340 $44,897 $437,922 
Commercial real estate:
Owner occupied properties
Pass$68,074 $48,655 $74,611 $64,234 $74,662 $74,987 $405,223 
Criticized— — 492 — 348 12,029 12,869 
Total commercial real estate owner occupied properties$68,074 $48,655 $75,103 $64,234 $75,010 $87,016 $418,092 
Non-owner occupied and multifamily properties
Pass$114,879 $70,806 $104,924 $73,008 $65,592 $175,349 $604,558 
Criticized— — 1,166 30 — 9,908 11,104 
Total commercial real estate non-owner occupied and multifamily properties$114,879 $70,806 $106,090 $73,038 $65,592 $185,257 $615,662 
Residential real estate:
1-4 family residential properties secured by first liens
Pass$103,919 $108,642 $43,562 $3,279 $4,228 $6,978 $270,608 
Criticized— 205 — — — 153 358 
Total residential real estate 1-4 family residential properties secured by first liens$103,919 $108,847 $43,562 $3,279 $4,228 $7,131 $270,966 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass$18,946 $13,553 $5,116 $2,695 $2,097 $6,083 $48,490 
Criticized— 372 — — — 298 670 
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$18,946 $13,925 $5,116 $2,695 $2,097 $6,381 $49,160 
1-4 family residential construction loans
Pass$25,458 $4,118 $2,353 $— $— $7,587 $39,516 
Criticized— — — — — — — 
Total residential real estate 1-4 family residential construction loans$25,458 $4,118 $2,353 $— $— $7,587 $39,516 
Other construction, land development and raw land loans
Pass$63,430 $60,693 $51,809 $25,836 $1,236 $7,942 $210,946 
Criticized— — — — — 1,615 1,615 
Total other construction, land development and raw land loans$63,430 $60,693 $51,809 $25,836 $1,236 $9,557 $212,561 
Obligations of states and political subdivisions in the US
Pass$— $— $29,471 $— $— $— $29,471 
Criticized— — — — — — — 
Total obligations of states and political subdivisions in the US$— $— $29,471 $— $— $— $29,471 
Agricultural production, including commercial fishing
Pass$8,097 $8,776 $8,380 $15,847 $3,109 $1,631 $45,840 
Criticized— — — — — — — 
Total agricultural production, including commercial fishing$8,097 $8,776 $8,380 $15,847 $3,109 $1,631 $45,840 
Consumer loans
Pass$3,346 $2,377 $717 $75 $252 $820 $7,587 
Criticized— 45 5 — — 1 51 
Total consumer loans$3,346 $2,422 $722 $75 $252 $821 $7,638 
Other loans
Pass$— $345 $122 $285 $1,683 $— $2,435 
Criticized— — — — — — — 
Total other loans$— $345 $122 $285 $1,683 $— $2,435 
Total loans
Pass$518,510 $388,836 $441,442 $222,887 $163,440 $321,665 $2,056,780 
Criticized201 4,008 18,551 15,003 6,107 28,613 72,483 
Total loans$518,711 $392,844 $459,993 $237,890 $169,547 $350,278 $2,129,263 
Total pass loans$518,510 $388,836 $441,442 $222,887 $163,440 $321,665 $2,056,780 
Government guarantees (35,244)(12,421)(7,727)(13,785)(1,591)(17,276)(88,044)
Total pass loans, net of government guarantees$483,266 $376,415 $433,715 $209,102 $161,849 $304,389 $1,968,736 
Total criticized loans$201 $4,008 $18,551 $15,003 $6,107 $28,613 $72,483 
Government guarantees— (1,640)(14,816)(13,476)(5,183)(7,963)(43,078)
Total criticized loans, net government guarantees$201 $2,368 $3,735 $1,527 $924 $20,650 $29,405 
Aging of Contractually Past Due Loans The following tables present an aging of contractually past due loans as of the periods presented:
(In Thousands)30-59 Days
Past Due		60-89 Days
Past Due		Greater Than
90 Days Past Due		Total Past
Due		CurrentTotalGreater Than 90 Days Past Due Still Accruing
June 30, 2025      
Commercial & industrial loans$795 $70 $1,499 $2,364 $483,867 $486,231 $— 
Commercial real estate:
Owner occupied properties
— — 217 217 445,280 445,497 — 
Non-owner occupied and multifamily properties
— — — — 692,573 692,573 — 
Residential real estate:
1-4 family residential properties secured by first liens
— 468 197 665 206,160 206,825 — 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
69 65 372 506 60,105 60,611 — 
1-4 family residential construction loans
— — — — 35,777 35,777 — 
Other construction, land development and raw land loans— — 1,490 1,490 184,517 186,007 — 
Obligations of states and political subdivisions in the US— — — — 31,479 31,479 — 
Agricultural production, including commercial fishing— — — — 46,340 46,340 — 
Consumer loans24 25 — 49 7,614 7,663 — 
Other loans— — — — 3,112 3,112 — 
Total$888 $628 $3,775 $5,291 $2,196,824 $2,202,115 $— 
December 31, 2024
Commercial & industrial loans$718 $— $1,558 $2,276 $435,646 $437,922 $— 
Commercial real estate:
Owner occupied properties
— 492 224 716 417,376 418,092 — 
Non-owner occupied and multifamily properties
— — — — 615,662 615,662 — 
Residential real estate:
1-4 family residential properties secured by first liens
712 323 205 1,240 269,726 270,966 — 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
— — 466 466 48,694 49,160 17 
1-4 family residential construction loans
— — 94 94 39,422 39,516 — 
Other construction, land development and raw land loans— — 1,432 1,432 211,129 212,561 — 
Obligations of states and political subdivisions in the US— — — — 29,471 29,471 — 
Agricultural production, including commercial fishing— — — — 45,840 45,840 — 
Consumer loans— — — — 7,638 7,638 — 
Other loans— — — — 2,435 2,435 — 
Total$1,430 $815 $3,979 $6,224 $2,123,039 $2,129,263 $17 
Loans on Nonaccrual Status The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.
June 30, 2025December 31, 2024
(In  Thousands)NonaccrualNonaccrual With No ACLNonaccrualNonaccrual With No ACL
Commercial & industrial loans$5,484 $5,484 $4,983 $4,760 
Commercial real estate:
     Owner occupied properties217 217 224 224 
Residential real estate:
     1-4 family residential properties secured by first liens197 197 233 — 
     1-4 family residential properties secured by junior liens
      and revolving secured by 1-4 family first liens		448 372 550 466 
     1-4 family residential construction loans— — 94 94 
Other construction, land development and raw land loans1,490 1,490 1,432 1,432 
Consumer loans25 — — — 
Total nonaccrual loans7,861 7,760 7,516 6,976 
Government guarantees on nonaccrual loans(70)(70)— — 
Net nonaccrual loans$7,791 $7,690 $7,516 $6,976 
Financing Receivable, Modified
The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:
Three Months Ended June 30, 2025
Payment ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Owner occupied properties$— $— $— — %
Total$— $— $— — %
Three Months Ended June 30, 2024
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans$— $— $— — %
Total$— $— $— — %

Six Months Ended June 30, 2025
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Owner occupied properties— $3,252 $3,252 0.73 %
Total$— $3,252 $3,252 0.15 %

Six Months Ended June 30, 2024
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans$5,396 $265 $5,661 1.36 %
Total$5,396 $265 $5,661 0.30 %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:

Three Months Ended June 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Owner occupied properties$— — %0

Three Months Ended June 30, 2024
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans$— — %0

Six Months Ended June 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Owner occupied properties$— — %33
Six Months Ended June 30, 2024
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans$— 8 %7

The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty as of the dates indicated. These are loans that have been modified within twelve months of the dates indicated:
June 30, 2025December 31, 2024
(In Thousands)
Commercial & industrial loans$768 $5,075 
Commercial real estate:
Owner occupied properties3,468 224 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens372 466 
1-4 family residential construction loans— 94 
Other construction, land development and raw land loans1,490 1,432 
Total$6,098 $7,291 
The following table presents the amortized cost basis of loans that had a payment default during the period indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Term modificationTerm modification
(In Thousands)
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$— $— 
1-4 family residential construction loans— — 
Other construction, land development and raw land loans— — 
Total$— $— 

Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Term modificationTerm modification
(In Thousands)
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$— $112 
1-4 family residential construction loans— 109 
Other construction, land development and raw land loans— 968 
Total$— $1,189 
The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:
June 30, 2025
Greater Than 89 Days Past DueTotal Past Due
Current
Total
(In Thousands)
Commercial & industrial loans$— $— $768 $768 
Commercial real estate:
Owner occupied properties217 217 3,251 3,468 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens372 372 — 372 
Other construction, land development and raw land loans1,490 1,490 — 1,490 
Total$2,079 $2,079 $4,019 $6,098 
June 30, 2024
Total Past DueCurrentTotal
(In Thousands)
Commercial & industrial loans$— $5,394 $5,394 
Commercial real estate:
Owner occupied properties— 242 242 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens— 108 108 
1-4 family residential construction loans— 106 106 
Other construction, land development and raw land loans— 1,512 1,512 
Total$— $7,362 $7,362