v3.25.4
Loans
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Loans Loans
Loans held-for-investment by portfolio type consist of the following as of December 31,:
20252024
Commercial and industrial$2,937,867 $2,627,591 
Commercial real estate:
Non-owner occupied742,002 752,628 
Owner occupied700,774 700,867 
Construction and land268,652 362,677 
Multifamily210,368 94,355 
Total commercial real estate1,921,796 1,910,527 
Residential real estate1,221,086 1,180,610 
Public finance501,582 554,784 
Consumer32,651 41,144 
Other58,198 61,701 
Total loans$6,673,180 $6,376,357 
Allowance for credit losses(85,016)(88,221)
Loans, net of allowance for credit losses$6,588,164 $6,288,136 
As of December 31, 2025 and 2024, we had net deferred fees, costs, premiums and discounts of $13,538 and $10,222, respectively, on our loan portfolio.
Accrued interest receivable on loans totaled $30,031 and $29,971 at December 31, 2025 and 2024, respectively, and is included in accrued interest receivable in the accompanying consolidated balance sheets.
The following table presents the activity in the allowance for credit losses by portfolio type for the years ended December 31,:
Commercial
and
Industrial		Commercial
Real
Estate		Residential
Real
Estate		Public
Finance		ConsumerOtherTotal
2025
Allowance for credit losses:
Balance, beginning of year$38,489 $28,323 $15,450 $4,750 $750 $459 $88,221 
Provision for (benefit from) credit losses29,772 (3,926)(2,127)114 213 1,004 25,050 
Loans charged-off(25,800)— (74)(1,922)(447)(743)(28,986)
Recoveries441 11 74 — 205 — 731 
Balance, end of year$42,902 $24,408 $13,323 $2,942 $721 $720 $85,016 
2024
Allowance for credit losses:
Balance, beginning of year$29,830 $27,546 $16,345 $5,337 $717 $623 $80,398 
Provision for (benefit from) credit losses28,221 1,243 (865)(587)352 (164)28,200 
Loans charged-off(20,743)(475)(38)— (438)— (21,694)
Recoveries1,181 9 8 — 119 — 1,317 
Balance, end of year$38,489 $28,323 $15,450 $4,750 $750 $459 $88,221 
2023
Allowance for credit losses:
Balance, beginning of year$40,908 $19,743 $2,963 $1,664 $351 $288 $65,917 
Impact of adopting
ASC 326
(13,583)3,867 10,256 3,890 249 577 5,256 
Provision for (benefit from) credit losses10,629 4,007 2,457 (217)401 (242)17,035 
Loans charged-off(9,242)(83)(13)— (334)— (9,672)
Recoveries1,118 12 682 — 50 — 1,862 
Balance, end of year$29,830 $27,546 $16,345 $5,337 $717 $623 $80,398 
We determine the allowance for credit losses estimate on at least a quarterly basis.
As of December 31, 2025 and 2024, we had an allowance for credit losses on unfunded commitments of $1,209 and $1,659, respectively. For the years ended December 31, 2025, 2024 and 2023, we recorded a provision (benefit) for credit losses on unfunded commitments of $(450), $(650) and $1,212, respectively.
The following table presents our loan portfolio aging analysis as of December 31,:
Loans
Not
Past Due		Loans
30-59 Days
Past Due		Loans
60-89 Days
Past Due		Loans Greater
than 90 Days
Past Due,
Still Accruing		NonaccrualTotal
2025
Commercial and industrial$2,890,507 $8,149 $5,501 $— $33,710 $2,937,867 
Commercial real estate:
Non-owner occupied723,930 13,891 — — 4,181 742,002 
Owner occupied699,342 414 — — 1,018 700,774 
Construction and land264,238 — 4,414 — — 268,652 
Multifamily210,368 — — — — 210,368 
Total commercial real estate1,897,878 14,305 4,414 — 5,199 1,921,796 
Residential real estate1,177,999 16,657 4,614 690 21,126 1,221,086 
Public Finance501,582 — — — — 501,582 
Consumer32,528 70 7 — 46 32,651 
Other50,244 7,954 — — — 58,198 
Total loans$6,550,738 $47,135 $14,536 $690 $60,081 $6,673,180 
2024
Commercial and industrial$2,592,274 $6,331 $672 $— $28,314 $2,627,591 
Commercial real estate:
Non-owner occupied748,004 274 — — 4,350 752,628 
Owner occupied695,733 1,856 — — 3,278 700,867 
Construction and land362,677 — — — — 362,677 
Multifamily92,681 — — — 1,674 94,355 
Total commercial real estate1,899,095 2,130 — — 9,302 1,910,527 
Residential real estate1,140,193 17,065 3,117 15 20,220 1,180,610 
Public Finance547,558 — — — 7,226 554,784 
Consumer41,044 36 — — 64 41,144 
Other50,248 7,156 388 1,518 2,391 61,701 
Total loans$6,270,412 $32,718 $4,177 $1,533 $67,517 $6,376,357 
Interest income recorded on nonperforming loans was not material for the years ended December 31, 2025, 2024 and 2023.
Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. We segment loans into risk categories based on relevant borrower risk profile information, including the ability to service their debt based on current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. The risk rating system is used as a tool to analyze and monitor movements in loan portfolio quality.
Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. We use the following definitions for risk ratings:
Pass – Loans classified as Pass have a well-defined primary source of repayment, an acceptable financial position profile (including capitalization), profitability and minimal operating risk.
Pass/Watch – Pass/Watch loans require close attention by bank management and enhanced monitoring due to quantitative or qualitative concerns linked to adverse trends or near-term uncertainty. A covenant default or other type of requirement shortfall may have arisen subsequent to a loan's booking or borrower now shows signs of weakness in the overall base of confirmable financial resources available to repay the loan. However, overall financial capacity & performance are considered sufficient to support an expectation of continued payment performance and / or mitigating factors exist that are expected to limit the risk of near-term default and loss.
Special Mention – Special Mention loans have identified potential weaknesses that are of sufficient materiality to require management’s (persistent) close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the bank's credit position under normal business operations. Special Mention loans contain greater than acceptable risk to warrant increases in credit exposure and are thus considered “criticized”, non-pass rated credits. They may contain weaknesses (that have arisen due to deteriorating conditions since origination) and / or underwriting exceptions that are not currently offset by mitigating factors. However, these weaknesses, while sufficient to constitute significantly elevated credit risk, are not sufficient to support a conclusion that the liquidation of the debt is in significant jeopardy.
Substandard - Accruing – Substandard - Accruing loans are inadequately protected by the current sound net worth and paying capacity of the obligor(s). Loans classified as Substandard - Accruing possess one or more well-defined weaknesses that are expected to jeopardize their liquidation, but the weaknesses have not progressed to a point where recent late payments on the loan have become more than 90 days past due. These loans are characterized by the distinct possibility that the bank may sustain up to a moderate but not significant level of loss if such weaknesses are not corrected. Losses for Substandard - Accruing loans are moderated by the lower likelihood of ultimate default and the existence of relatively favorable secondary repayment protection.
Substandard - Nonaccrual – Substandard - Nonaccrual loans are inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as Substandard - Nonaccrual possess material, well-defined weaknesses that are expected to jeopardize their liquidation and have progressed to a point where consistently late payments on the loan have become more than 90 or more days past due. These loans are characterized by the distinct possibility that the bank may sustain a material level of loss if such weaknesses are not corrected. Losses for Substandard - Nonaccrual loans are prone to being elevated based on the strong likelihood of the loan remaining in payment default and an undesirable level of secondary repayment protection. These loans are considered “nonperforming”.
Doubtful – Loans classified as Doubtful possess all of the weaknesses inherent in loans classified as Substandard - Nonaccrual with the added characteristic that the weaknesses make collection or liquidation in full highly questionable or improbable based on currently existing facts, conditions and values. A high probability of substantial loss or possible total loss exists. Loans rated as doubtful are not rated as loss because certain events may occur that could salvage at least a portion of the debt. These events include injections of capital, additions of pledged collateral or possible mezzanine debt refinancing options. However, without the occurrence of such events, total loss may be possible. No definite repayment schedule exists for these loans. The Doubtful grade is a temporary grade. If a near term recovery of a portion of the loan balance is indeterminable or unlikely to occur, the remaining balance of the loan should be written off and possible future recoveries may partially offset the full write-off of the loan. These loans are considered “nonperforming”.
Loss – Loans classified as Loss are defaulted loans with limited or immaterial recovery prospects. No loan that has not yet defaulted should be classified at this grade level. This rating level tends to be very short lived as the full balance of the loan tends to be fully written off nearly immediately after a change to this rating level. These loans are considered “nonperforming”.
The following table presents the amortized costs by segment of loans by risk category and origination date as of December 31, 2025 and gross charge-offs by origination date for the year ended December 31, 2025:
20252024202320222021PriorRevolving Loans
Converted to Term		RevolvingTotal
Commercial and industrial:
Pass$740,012 $298,940 $169,246 $149,909 $121,886 $80,362 $57,063 $1,039,368 $2,656,786 
Pass/Watch2,217 26,707 11,607 26,316 1,005 2,868 2,195 9,782 82,697 
Special Mention— 13,948 20,570 23,243 3,338 295 17,330 14,443 93,167 
Substandard - Accruing1,522 — 24,860 9,031 13,523 4,387 5,571 12,613 71,507 
Substandard - Nonaccrual— — — 10,950 1,487 3,011 16,657 237 32,342 
Doubtful— — — 959 — — — 409 1,368 
Total commercial and industrial$743,751 $339,595 $226,283 $220,408 $141,239 $90,923 $98,816 $1,076,852 $2,937,867 
Gross charge-offs$— $983 $1,765 $16,676 $83 $1,846 $2,973 $1,474 $25,800 
Commercial real estate:
Non-owner occupied:
Pass$161,082 $38,766 $58,184 $100,232 $103,191 $190,446 $7,616 $19,647 $679,164 
Pass/Watch— — — 8,964 28,923 7,023 1,759 10,162 56,831 
Special Mention— — — — — 246 — — 246 
Substandard - Accruing— — — 1,366 — 214 — — 1,580 
Substandard - Nonaccrual— — — — — 4,181 — — 4,181 
Total non-owner occupied$161,082 $38,766 $58,184 $110,562 $132,114 $202,110 $9,375 $29,809 $742,002 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Owner occupied:
Pass$101,496 $88,319 $70,010 $37,308 $77,652 $207,336 $34,639 $5,351 $622,111 
Pass/Watch— 93 558 8,403 5,275 17,174 — — 31,503 
Special Mention— 12,465 2,010 6,676 — 5,417 — — 26,568 
Substandard - Accruing— — 9,556 — 441 9,577 — — 19,574 
Substandard - Nonaccrual— — — — — 1,018 — — 1,018 
Total owner occupied$101,496 $100,877 $82,134 $52,387 $83,368 $240,522 $34,639 $5,351 $700,774 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Construction & land:
Pass$32,191 $46,025 $59,674 $48,126 $6,319 $7,779 $19,081 $10,372 $229,567 
Pass/Watch1,050 905 — 3,246 — — — — 5,201 
Special Mention— 1,736 7,375 24,773 — — — — 33,884 
Total construction & land$33,241 $48,666 $67,049 $76,145 $6,319 $7,779 $19,081 $10,372 $268,652 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Multifamily:
Pass$35,233 $4,457 $1,309 $109,040 $29,471 $17,717 $10,460 $— $207,687 
Pass/Watch— — — — — 878 — — 878 
Special Mention— — — — 1,803 — — — 1,803 
Total multifamily$35,233 $4,457 $1,309 $109,040 $31,274 $18,595 $10,460 $— $210,368 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
20252024202320222021PriorRevolving Loans
Converted to Term		RevolvingTotal
Total commercial real estate:
Pass$330,002 $177,567 $189,177 $294,706 $216,633 $423,278 $71,796 $35,370 $1,738,529 
Pass/Watch1,050 998 558 20,613 34,198 25,075 1,759 10,162 94,413 
Special Mention— 14,201 9,385 31,449 1,803 5,663 — — 62,501 
Substandard - Accruing— — 9,556 1,366 441 9,791 — — 21,154 
Substandard - Nonaccrual— — — — — 5,199 — — 5,199 
Total commercial real estate:$331,052 $192,766 $208,676 $348,134 $253,075 $469,006 $73,555 $45,532 $1,921,796 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Residential real estate:
Pass$151,678 $135,326 $100,216 $502,785 $101,673 $157,612 $2,160 $16,254 $1,167,704 
Pass/Watch4,248 2,263 2,565 6,467 5,888 7,450 54 — 28,935 
Special Mention1,644 431 388 626 — 183 — — 3,272 
Substandard - Accruing— — — — — 49 — — 49 
Substandard - Nonaccrual— 568 505 12,512 378 7,005 133 25 21,126 
Total residential real estate$157,570 $138,588 $103,674 $522,390 $107,939 $172,299 $2,347 $16,279 $1,221,086 
Gross charge-offs$— $— $— $— $— $74 $— $— $74 
Public Finance:
Pass$6,725 $30,469 $1,066 $— $41,450 $418,758 $— $3,114 $501,582 
Total public finance$6,725 $30,469 $1,066 $— $41,450 $418,758 $— $3,114 $501,582 
Gross charge-offs$— $— $— $— $— $1,922 $— $— $1,922 
Consumer:
Pass$2,469 $2,121 $767 $759 $2,930 $9,535 $150 $13,026 $31,757 
Pass/Watch27 — 3 5 100 508 61 144 848 
Substandard - Nonaccrual— — — — 2 44 — — 46 
Total consumer$2,496 $2,121 $770 $764 $3,032 $10,087 $211 $13,170 $32,651 
Gross charge-offs$— $8 $17 $58 $42 $197 $1 $124 $447 
Other:
Pass$11,659 $4,945 $— $7,321 $9,128 $6,545 $— $14,924 $54,522 
Pass/Watch— — — — 672 — — 3,004 3,676 
Total other$11,659 $4,945 $— $7,321 $9,800 $6,545 $— $17,928 $58,198 
Gross charge-offs$— $— $— $— $— $743 $— $— $743 
Total loans:
Pass$1,242,545 $649,368 $460,472 $955,480 $493,700 $1,096,090 $131,169 $1,122,056 $6,150,880 
Pass/Watch7,542 29,968 14,733 53,401 41,863 35,901 4,069 23,092 210,569 
Special Mention1,644 28,580 30,343 55,318 5,141 6,141 17,330 14,443 158,940 
Substandard - Accruing1,522 — 34,416 10,397 13,964 14,227 5,571 12,613 92,710 
Substandard - Nonaccrual— 568 505 23,462 1,867 15,259 16,790 262 58,713 
Doubtful— — — 959 — — — 409 1,368 
Total loans$1,253,253 $708,484 $540,469 $1,099,017 $556,535 $1,167,618 $174,929 $1,172,875 $6,673,180 
Gross charge-offs$— $991 $1,782 $16,734 $125 $4,782 $2,974 $1,598 $28,986 
The following table presents the amortized cost by segment of loans by risk category and origination date as of December 31, 2024 and gross charge-offs by origination date for the year ended December 31, 2024:
20242023202220212020PriorRevolving Loans Converted to TermRevolvingTotal
Commercial and industrial:
Pass$515,836 $269,395 $257,423 $221,972 $67,636 $48,713 $76,821 $912,809 $2,370,605 
Pass/Watch1,469 17,131 29,927 19,200 4,373 2,343 322 19,994 94,759 
Special Mention277 13,796 22,630 3,740 345 664 1,901 3,772 47,125 
Substandard - Accruing928 6,359 27,244 22,543 2,862 3,236 6,339 17,277 86,788 
Substandard - Nonaccrual— 2,235 12,689 4,100 2,895 2,459 1,584 1,707 27,669 
Doubtful— — — — 415 — 230 — 645 
Total commercial and industrial$518,510 $308,916 $349,913 $271,555 $78,526 $57,415 $87,197 $955,559 $2,627,591 
Gross charge-offs$— $— $— $19,720 $269 $2 $630 $122 $20,743 
Commercial real estate:
Non-owner occupied:
Pass$40,289 $62,077 $101,213 $125,983 $137,151 $190,617 $7,919 $20,030 $685,279 
Pass/Watch— — 1,305 23,343 851 6,016 — 17,386 48,901 
Special Mention— — — 5,953 — — — — 5,953 
Substandard - Accruing— 2,711 — — 542 3,399 1,493 — 8,145 
Substandard - Nonaccrual— — — — — 4,350 — — 4,350 
Total non-owner occupied$40,289 $64,788 $102,518 $155,279 $138,544 $204,382 $9,412 $37,416 $752,628 
Gross charge-offs$— $— $— $— $270 $11 $— $— $281 
Owner occupied:
Pass$102,994 $78,583 $63,861 $88,399 $90,033 $177,733 $21,049 $4,386 $627,038 
Pass/Watch— 13,933 875 5,515 19,266 3,773 — — 43,362 
Special Mention— — 2,268 407 1,870 6,836 — — 11,381 
Substandard - Accruing— 577 446 — 2,516 12,269 — — 15,808 
Substandard - Nonaccrual— — — 1,167 — 2,111 — — 3,278 
Total owner occupied$102,994 $93,093 $67,450 $95,488 $113,685 $202,722 $21,049 $4,386 $700,867 
Gross charge-offs$— $— $— $— $— $194 $— $— $194 
Construction & land:
Pass$15,602 $54,903 $199,051 $6,749 $3,745 $4,414 $3,436 $29,998 $317,898 
Pass/Watch— — 3,351 — — 15 — — 3,366 
Special Mention— — 41,413 — — — — — 41,413 
Total construction & land$15,602 $54,903 $243,815 $6,749 $3,745 $4,429 $3,436 $29,998 $362,677 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Multifamily:
Pass$4,408 $1,338 $36,156 $32,878 $4,866 $7,502 $5,533 $— $92,681 
Substandard - Nonaccrual— — 1,674 — — — — — 1,674 
Total multifamily$4,408 $1,338 $37,830 $32,878 $4,866 $7,502 $5,533 $— $94,355 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Total commercial real estate:
Pass$163,293 $196,901 $400,281 $254,009 $235,795 $380,266 $37,937 $54,414 $1,722,896 
Pass/Watch— 13,933 5,531 28,858 20,117 9,804 — 17,386 95,629 
Special Mention— — 43,681 6,360 1,870 6,836 — — 58,747 
Substandard - Accruing— 3,288 446 — 3,058 15,668 1,493 — 23,953 
Substandard - Nonaccrual— — 1,674 1,167 — 6,461 — — 9,302 
Total commercial real estate:$163,293 $214,122 $451,613 $290,394 $260,840 $419,035 $39,430 $71,800 $1,910,527 
Gross charge-offs$— $— $— $— $270 $205 $— $— $475 
20242023202220212020PriorRevolving Loans Converted to TermRevolvingTotal
Residential real estate:
Pass$141,409 $138,915 $549,022 $108,084 $35,720 $151,015 $2,405 $15,201 $1,141,771 
Pass/Watch— 1,405 4,731 4,148 90 6,151 62 994 17,581 
Special Mention— — 351 — — 601 — — 952 
Substandard - Accruing— — — — — 86 — — 86 
Substandard - Nonaccrual210 — 10,667 727 2,244 6,284 59 29 20,220 
Total residential real estate$141,619 $140,320 $564,771 $112,959 $38,054 $164,137 $2,526 $16,224 $1,180,610 
Gross charge-offs$— $— $— $— $— $38 $— $— $38 
Public Finance:
Pass$29,860 $19,986 $— $42,558 $130,447 $322,066 $— $2,641 $547,558 
Substandard - Nonaccrual— — — — — 7,226 — — 7,226 
Total public finance$29,860 $19,986 $— $42,558 $130,447 $329,292 $— $2,641 $554,784 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Pass$3,949 $1,610 $1,333 $3,793 $7,463 $4,695 $60 $17,465 $40,368 
Pass/Watch— 6 37 104 182 331 1 46 707 
Special Mention— — — 1 — — — — 1 
Substandard - Accruing— — — — — — 4 — 4 
Substandard - Nonaccrual— — — 58 4 2 — — 64 
Total consumer$3,949 $1,616 $1,370 $3,956 $7,649 $5,028 $65 $17,511 $41,144 
Gross charge-offs$3 $10 $6 $3 $147 $46 $15 $208 $438 
Other:
Pass$1,564 $6,503 $6,663 $10,620 $148 $8,339 $129 $21,984 $55,950 
Pass/Watch— — — 3,360 — — — — 3,360 
Substandard - Nonaccrual— — — — — 2,391 — — 2,391 
Total other$1,564 $6,503 $6,663 $13,980 $148 $10,730 $129 $21,984 $61,701 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans:
Pass$855,911 $633,310 $1,214,722 $641,036 $477,209 $915,094 $117,352 $1,024,514 $5,879,148 
Pass/Watch1,469 32,475 40,226 55,670 24,762 18,629 385 38,420 212,036 
Special Mention277 13,796 66,662 10,101 2,215 8,101 1,901 3,772 106,825 
Substandard - Accruing928 9,647 27,690 22,543 5,920 18,990 7,836 17,277 110,831 
Substandard - Nonaccrual210 2,235 25,030 6,052 5,143 24,823 1,643 1,736 66,872 
Doubtful— — — — 415 — 230 — 645 
Total loans$858,795 $691,463 $1,374,330 $735,402 $515,664 $985,637 $129,347 $1,085,719 $6,376,357 
Gross charge-offs$3 $10 $6 $19,723 $686 $291 $645 $330 $21,694 
The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of December 31,:
Collateral Dependent Loans
With Allowance		Collateral Dependent Loans
With No Related Allowance		Total Collateral
Dependent Loans
Amortized CostRelated AllowanceAmortized CostAmortized CostRelated Allowance
2025
Commercial & industrial$11,977 $5,194 $21,733 $33,710 $5,194 
Commercial real estate:
Non-owner occupied3,617 102 564 4,181 102 
Owner occupied— — 1,018 1,018 — 
Total commercial real estate3,617 102 1,582 5,199 102 
Residential real estate1,976 101 19,150 21,126 101 
Consumer43 43 3 46 43 
Total loans$17,613 $5,440 $42,468 $60,081 $5,440 
2024
Commercial & industrial$20,890 $8,460 $7,424 $28,314 $8,460 
Commercial real estate:
Non-owner occupied— — 4,350 4,350 — 
Owner occupied— — 3,278 3,278 — 
Multifamily— — 1,674 1,674 — 
Total commercial real estate— — 9,302 9,302 — 
Residential real estate1,409 154 18,811 20,220 154 
Public Finance7,226 1,460 — 7,226 1,460 
Consumer64 64 — 64 64 
Other2,391 159 — 2,391 159 
Total loans$31,980 $10,297 $35,537 $67,517 $10,297 
The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in historical data or forecasted data incorporated in the quantitative models.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty:
The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a PD/LGD model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of a modification. The loan modifications in the table below did not significantly impact our determination of the allowance for credit losses on loans during 2025.
Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, the Company may allow a loan to go interest only for a specified period of time.
The following tables present loan modifications for borrowers experiencing financial difficulty for the years ended December 31, 2025 and 2024, segregated by modification type, regardless of whether such modifications resulted in a new loan.
For the years ended December 31,:
Principal
Forgiveness		Payment
Delay / Deferral		Term
Extension		Interest Rate
Reduction		Combination Principal Forgiveness
and Interest Rate Reduction		Combination Term Extension and Interest Rate ReductionCombination Payment Delay / Deferral, Interest Rate Reduction, and Interest Only Period% of
Total Class
of Loans
2025
Commercial and industrial$— $20,079 $18,517 $— $— $— $341 1.3 %
Commercial real estate:
Owner occupied— 1,018 — 1,215 — — — 0.3 %
Total commercial real estate— 1,018 — 1,215 — — — 0.1 %
Residential real estate— — 1,189 — — — — 0.1 %
Total loans$— $21,097 $19,706 $1,215 $— $— $341 0.6 %
2024
Commercial and industrial$952 $15,661 $365 $— $525 $— $190 0.7 %
Commercial real estate:
Non-owner occupied— — — — — 1,936 — 0.3 %
Owner occupied— 3,748 — 2,737 — — — 0.9 %
Total commercial real estate— 3,748 — 2,737 — 1,936 — 0.4 %
Residential real estate— — 519 — 287 — — 0.1 %
Total loans$952 $19,409 $884 $2,737 $812 $1,936 $190 0.4 %
Modifications made to the loans presented in the tables above to borrowers experiencing financial difficulty for the years ended December 31, 2025 and 2024 were short-term in nature, generally less than one year.
There were commitments to lend additional funds to these borrowers of $3,050 at December 31, 2025.
The financial effects of our loan modifications made to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024 were not significant.
We closely monitor the performance of loan modifications made to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table depicts the performance of loan modifications made to borrowers experiencing financial difficulty that have been modified in the last 12 months:
Loans
Not
Past Due		Loans
30-59 Days
Past Due		Loans
60-89 Days
Past Due		Loans Greater
than 90 Days
Past Due,
Still Accruing		NonaccrualTotal
December 31, 2025
Commercial and industrial$20,712 $65 $— $— $18,160 $38,937 
Commercial real estate:
Owner occupied1,215 — — — 1,018 2,233 
Residential real estate426 763 — — — 1,189 
Total loans$22,353 $828 $— $— $19,178 $42,359