| Loans |
Loans The Company periodically reviews and updates the segmentation of its loan portfolio. Updates performed in conjunction with adoption of ASC 326 in 2023 consisted of reporting what had been a single class, commercial real estate loans, as three classes - commercial real estate owner occupied, commercial real estate non-owner occupied, and commercial multi-family. In addition, home equity installment loans which had previously been included in the residential term class were included in the home equity revolving and term class. In the first quarter of 2024, a new segment was established for Agriculture loans, and there have been no subsequent segmentation changes. Loan Portfolio by Class: The following table shows the composition of the Company's loan portfolio as of December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | December 31, 2025 | December 31, 2024 | | Commercial | | | | | | Real Estate Owner Occupied | $ | 378,263,000 | | 15.8 | % | $ | 358,588,000 | | 15.3 | % | | Real Estate Non-Owner Occupied | 409,177,000 | | 17.1 | % | 403,899,000 | | 17.3 | % | | Construction | 35,025,000 | | 1.5 | % | 99,717,000 | | 4.3 | % | | C&I | 376,907,000 | | 15.7 | % | 365,817,000 | | 15.6 | % | | Multifamily | 158,910,000 | | 6.6 | % | 108,732,000 | | 4.6 | % | | Agriculture | 48,145,000 | | 2.0 | % | 52,219,000 | | 2.2 | % | | Municipal | 52,074,000 | | 2.2 | % | 61,827,000 | | 2.6 | % | | Residential | | | | | | Term | 739,188,000 | | 30.9 | % | 710,807,000 | | 30.4 | % | | Construction | 35,332,000 | | 1.5 | % | 35,481,000 | | 1.5 | % | | Home Equity | | | | | | Revolving and Term | 142,219,000 | | 5.9 | % | 123,063,000 | | 5.3 | % | | Consumer | 18,869,000 | | 0.8 | % | 20,790,000 | | 0.9 | % | | Total loans | $ | 2,394,109,000 | | 100.0 | % | $ | 2,340,940,000 | | 100.0 | % |
Loan balances include net deferred loan costs of $12,737,000 in 2025 and $12,457,000 in 2024. Net deferred loan costs have increased from a year ago a due to loan origination unit volume over the period. Loan balances in the Residential Term segment also include a valuation adjustment for fair value swaps hedged by certain loans in the portfolio. This adjustment added $910,000 to the loan balances as of December 31, 2025 and $758,000 to the loan balances as of December 31, 2024. Also included in Residential term loan balances is a valuation adjustment for the market value of interest rate caps which added $371,000 to loan balances as of December 31, 2025. There was no valuation adjustment for the market value of interest rate caps as of December 31, 2024.
Pledged Loans: Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate, which totaled $669,541,000 and $626,851,000 at December 31, 2025 and 2024, respectively, were used to collateralize borrowings from the FHLBB. In addition, commercial, residential construction and home equity loans totaling $366,032,000 at December 31, 2025 and $392,562,000 at December 31, 2024 were used to collateralize a standby line of credit at the FRBB.
Loans to Directors, Officers and Employees: Loans to directors, officers and employees totaled $48,681,000 at December 31, 2025 and $54,997,000 at December 31, 2024. A summary of loans to directors and executive officers is as follows: | | | | | | | | | | | | | For the years ended December 31, | 2025 | | 2024 | | Balance at beginning of year | $ | 32,182,000 | | | $ | 33,524,000 | | | New loans | 4,265,000 | | | 3,462,000 | | | Repayments | (7,905,000) | | | (4,804,000) | | | Retired Executive Officer | (244,000) | | | — | | | Balance at end of year | $ | 28,298,000 | | | $ | 32,182,000 | |
Past Due Loans: For all loan classes, loans over 30 days past due are considered delinquent. Information on the past-due status of loans by class of financing receivable as of December 31, 2025, is presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | 30-59 Days
Past Due | 60-89 Days
Past Due | 90+ Days
Past Due | All
Past Due | Current | Total | 90+ Days
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Accruing | | Commercial | | | | | | | | | Real Estate Owner Occupied | $ | 683,000 | | $ | 734,000 | | $ | 3,698,000 | | $ | 5,115,000 | | $ | 373,148,000 | | $ | 378,263,000 | | $ | — | | | Real Estate Non-Owner Occupied | 734,000 | | — | | 1,285,000 | | 2,019,000 | | 407,158,000 | | 409,177,000 | | — | | | Construction | 103,000 | | — | | 7,000 | | 110,000 | | 34,915,000 | | 35,025,000 | | 7,000 | | | C&I | 404,000 | | 102,000 | | 1,240,000 | | 1,746,000 | | 375,161,000 | | 376,907,000 | | 21,000 | | | Multifamily | 1,600,000 | | 160,000 | | — | | 1,760,000 | | 157,150,000 | | 158,910,000 | | — | | | Agriculture | 316,000 | | — | | 377,000 | | 693,000 | | 47,452,000 | | 48,145,000 | | — | | | Municipal | — | | — | | — | | — | | 52,074,000 | | 52,074,000 | | — | | | Residential | | | | | | | | | Term | 1,268,000 | | 2,901,000 | | 3,222,000 | | 7,391,000 | | 731,797,000 | | 739,188,000 | | 613,000 | | | Construction | 90,000 | | — | | — | | 90,000 | | 35,242,000 | | 35,332,000 | | — | | | Home Equity | | | | | | | | | Revolving and Term | 1,449,000 | | 391,000 | | 534,000 | | 2,374,000 | | 139,845,000 | | 142,219,000 | | — | | | Consumer | 152,000 | | 118,000 | | 39,000 | | 309,000 | | 18,560,000 | | 18,869,000 | | 24,000 | | | Total | $ | 6,799,000 | | $ | 4,406,000 | | $ | 10,402,000 | | $ | 21,607,000 | | $ | 2,372,502,000 | | $ | 2,394,109,000 | | $ | 665,000 | |
Information on the past-due status of loans by class of financing receivable as of December 31, 2024, is presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | All Past Due | Current | Total | 90+ Days & Accruing | | Commercial | | | | | | | | | Real Estate Owner Occupied | $ | — | | $ | 257,000 | | $ | 292,000 | | $ | 549,000 | | $ | 358,039,000 | | $ | 358,588,000 | | $ | — | | | Real Estate Non-Owner Occupied | — | | — | | — | | — | | 403,899,000 | | 403,899,000 | | — | | | Construction | — | | — | | — | | — | | 99,717,000 | | 99,717,000 | | — | | | C&I | 346,000 | | 1,112,000 | | 540,000 | | 1,998,000 | | 363,819,000 | | 365,817,000 | | 10,000 | | | Multifamily | — | | — | | — | | — | | 108,732,000 | | 108,732,000 | | — | | | Agriculture | 115,000 | | — | | — | | 115,000 | | 52,104,000 | | 52,219,000 | | — | | | Municipal | — | | — | | — | | — | | 61,827,000 | | 61,827,000 | | — | | | Residential | | | | | | | | | Term | 137,000 | | 2,614,000 | | 935,000 | | 3,686,000 | | 707,121,000 | | 710,807,000 | | 778,000 | | | Construction | 390,000 | | — | | — | | 390,000 | | 35,091,000 | | 35,481,000 | | — | | | Home Equity | | | | | | | | | Revolving and Term | 1,074,000 | | 368,000 | | 94,000 | | 1,536,000 | | 121,527,000 | | 123,063,000 | | — | | | Consumer | 592,000 | | 285,000 | | 232,000 | | 1,109,000 | | 19,681,000 | | 20,790,000 | | 232,000 | | | Total | $ | 2,654,000 | | $ | 4,636,000 | | $ | 2,093,000 | | $ | 9,383,000 | | $ | 2,331,557,000 | | $ | 2,340,940,000 | | $ | 1,020,000 | |
Non-Accrual Loans: For all classes, loans are placed on non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when principal and interest is 90 days or more past due unless the loan is both well secured and in the process of collection (in which case the loan may continue to accrue interest in spite of its past due status). A loan is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is "in the process of collection" if collection of the loan is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or, (2) in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future. Cash payments received on non-accrual loans are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected, or when it otherwise becomes well secured and in the process of collection. The following table presents the amortized costs basis of loans on nonaccrual status as of as of December 31, 2025 and 2024 is presented in the following table: | | | | | | | | | | | | | | | | | | | | | | As of December 31, | 2025 | 2024 | | Nonaccrual with Allowance for Credit Loss | Nonaccrual with no Allowance for Credit Loss | Total Nonaccrual | Nonaccrual with Allowance for Credit Loss | Nonaccrual with no Allowance for Credit Loss | Total Nonaccrual | | Commercial | | | | | | | | Real Estate Owner Occupied | $ | 1,131,000 | | $ | 2,896,000 | | $ | 4,027,000 | | $ | — | | $ | 553,000 | | $ | 553,000 | | | Real Estate Non-Owner Occupied | 1,285,000 | | 61,000 | | 1,346,000 | | — | | 61,000 | | 61,000 | | | Construction | — | | 8,000 | | 8,000 | | — | | 18,000 | | 18,000 | | | C&I | 1,297,000 | | 617,000 | | 1,914,000 | | 1,359,000 | | 336,000 | | 1,695,000 | | | Multifamily | — | | — | | — | | — | | — | | — | | | Agriculture | — | | 441,000 | | 441,000 | | — | | 31,000 | | 31,000 | | | Municipal | — | | — | | — | | — | | — | | — | | | Residential | | | | | | | | Term | 115,000 | | 4,078,000 | | 4,193,000 | | — | | 1,599,000 | | 1,599,000 | | | Construction | — | | — | | — | | — | | — | | — | | | Home Equity | | | | | | | | Revolving and Term | 242,000 | | 703,000 | | 945,000 | | — | | 291,000 | | 291,000 | | | Consumer | — | | 5,000 | | 5,000 | | — | | — | | — | | | Total | $ | 4,070,000 | | $ | 8,809,000 | | $ | 12,879,000 | | $ | 1,359,000 | | $ | 2,889,000 | | $ | 4,248,000 | |
For the years ended December 31, 2025 and 2024, interest income which would have been recognized on these loans, if interest had been accrued, was $466,000 and $172,000, respectively. Loans more than 90 days past due accruing interest totaled $665,000 at December 31, 2025 and $1,020,000 at December 31, 2024. The Company continues to accrue interest on these loans because it believes collection of principal and interest is reasonably assured.
Individually Analyzed Loans: Collectively IAL include loans with balances of $250,000 or more that have either been placed into nonaccrual or are loans identified by management as having characteristics that may impact ultimate collectibility and therefore merit individual analysis. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. If the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off. The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2025 and 2024, by collateral type: | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | December 31, 2024 | | Collateral Type | | Collateral Type | | | Commercial Real Estate | Residential Real Estate | Other | Total | Commercial Real Estate | Residential Real Estate | Other | Total | | Commercial | | | | | | | | | | Real estate owner occupied | $ | 3,626,000 | | $ | — | | $ | — | | $ | 3,626,000 | | $ | 263,000 | | $ | — | | $ | — | | $ | 263,000 | | | Real estate non-owner occupied | 1,348,000 | — | — | 1,348,000 | 67,000 | — | — | 67,000 | | Construction | — | — | — | — | — | — | — | — | | C&I | — | — | 1,300,000 | 1,300,000 | — | — | 1,438,000 | 1,438,000 | | Multifamily | — | — | — | — | — | — | — | — | | Agriculture | — | — | — | — | — | — | — | — | | Municipal | — | — | — | — | — | — | — | — | | Residential | | | | | | | — | | | Term | — | 2,912,000 | — | 2,912,000 | — | 558,000 | — | 558,000 | | Construction | — | — | — | — | — | — | — | — | | Home Equity | | | | | | | — | | | Revolving and term | — | 361,000 | — | 361,000 | — | — | — | — | | Consumer | — | — | — | — | — | — | — | — | | Total | $ | 4,974,000 | | $ | 3,273,000 | | $ | 1,300,000 | | $ | 9,547,000 | | $ | 330,000 | | $ | 558,000 | | $ | 1,438,000 | | $ | 2,326,000 | |
Collateral-dependent loans are loans for which the repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment.
Loan Modifications to Borrowers Experiencing Financial Difficulty: Loan modifications to borrowers experiencing financial difficulty may include interest rate reduction, term extension, payment deferral, principle forgiveness or a combination thereof. It is the intent to minimize future losses while providing borrowers with financial relief.
The following tables represent loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the year ended December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | Amortized Cost Basis | | Payment Deferral | Term Extension | Rate Mod | Combination Payment Deferral and Term Extension | Combination Payment Deferral and Rate Mod | Combination of Payment Deferral, Term & Rate Mod | % of Total Class of Financing Receivable | | Commercial | | | | | | | | | Real estate owner occupied | $ | 916,000 | | $ | 163,000 | | $ | — | | $ | 337,000 | | $ | — | | $ | — | | 0.37 | % | | Real estate non-owner occupied | 115,000 | | 251,000 | | — | | — | | 61,000 | | 1,285,000 | | 0.42 | % | | | | | | | | | | C&I | 718,000 | | 153,000 | | 362,000 | | 190,000 | | 463,000 | | — | | 0.50 | % | | Multifamily | 896,000 | | — | | 4,034,000 | | — | | — | | — | | 3.10 | % | | Agriculture | 1,951,000 | | — | | — | | — | | — | | — | | 4.05 | % | | | | | | | | | | Residential | | | | | | | | | Term | 54,000 | | — | | — | | 632,000 | | — | | 352,000 | | 0.14 | % | | | | | | | | | | Home Equity | | | | | | | | | Revolving and term | — | | — | | — | | 360,000 | | — | | — | | 0.25 | % | | | | | | | | | | Total | $ | 4,650,000 | | $ | 567,000 | | $ | 4,396,000 | | $ | 1,519,000 | | $ | 524,000 | | $ | 1,637,000 | | |
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2025: | | | | | | | Payment Deferral | | Financial Effect | | Commercial | | | Real estate owner occupied | Temporary payment accommodation, payments deferred to end of loan; 5 yr balloon payment | | Real estate non-owner occupied | Temporary payment accommodation, payments deferred to end of loan | | | | C&I | Temporary payment accommodation, payments deferred to end of loan | | Multifamily | Temporary payment accommodation, payments deferred to end of loan | | Agriculture | Temporary payment accommodation, payments deferred to end of loan; payments deferred for 6 months | | Residential | | | Term | Temporary payment accommodation, payments deferred to end of loan |
| | | | | | | Term Extension | | Financial Effect | | Commercial | | | Real estate owner occupied | Temporary payment accommodation, extended term up to 6 months | | Real estate non-owner occupied | Extended term 60 months | | C&I | Temporary payment accommodation, extended term 6 months | | | | |
| | | | | | | Rate Modification | | Financial Effect | | Commercial | | | | | | | C&I | Rate reduction to 6.50% | | Multifamily | Rate reduction to 5.00% |
| | | | | | | Combination Payment Deferral & Term Extension | | Financial Effect | | Commercial | | | Real estate owner occupied | Temporary payment accommodation, payments deferred to end of loan | | C&I | Temporary payment accommodation, payments deferred to end of loan | | Residential | | | Term | Temporary payment accommodation, payments deferred to end of loan | | Home Equity | | | Revolving and term | Temporary payment accommodation, payments deferred to end of loan |
| | | | | | | Combination Payment Deferral & Rate Modification | | Financial Effect | | Commercial | | | Real estate owner occupied | Payments deferred for 6 months; rate reduction to 2.0% | | C&I | Payments deferred for 6 months; rate reduction to 2.0% | | | | | | | | |
| | | | | | | Combination Payment Deferral, Term & Rate Modification | | Financial Effect | | Commercial | | | | | Real estate non-owner occupied | Seasonal payments, 5 yr balloon; 60 month term, 120 month amort; WSJP 0.50% | | | | Residential | | | Term | Seasonal payments, 3 yr balloon; 36 month term, 300 month amort; fixed rate |
The following tables represent loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the year ended December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | Amortized Cost Basis | | Payment Deferral | Term Extension | Interest Rate Reduction | Principal Forgiveness | Combination Payment Deferral and Term Extension | % of Total Class of Financing Receivable | | Commercial | | | | | | | | Real estate owner occupied | $ | 633,000 | | $ | — | | $ | — | | $ | — | | $ | — | | 0.18 | % | | | | | | | | | Construction | 69,000 | | — | | — | | — | | — | | 0.08 | % | | C&I | 169,000 | | 13,000 | | — | | — | | 54,000 | | 0.06 | % | | Multifamily | 1,932,000 | | — | | — | | — | | — | | 1.75 | % | | | | | | | | | | | | | | | | Residential | | | | | | | | Term | 1,019,000 | | 127,000 | | — | | — | | — | | 0.16 | % | | | | | | | | | Home Equity | | | | | | | | Revolving and term | — | | — | | — | | — | | 66,000 | | 0.06 | % | | | | | | | | | Total | $ | 3,822,000 | | $ | 140,000 | | $ | — | | $ | — | | $ | 120,000 | | |
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024: | | | | | | | Payment Deferral | | Financial Effect | | Commercial | | | Real estate owner occupied | Temporary payment accommodation, payments deferred to end of loan | | Construction | Temporary payment accommodation, payments deferred to end of loan | | C&I | Temporary payment accommodation, payments deferred to end of loan | | Multifamily | Temporary payment accommodation, payments deferred to end of loan | | Residential | | | Term | Temporary payment accommodation, payments deferred to end of loan |
| | | | | | | Term Extension | | Financial Effect | | Commercial | | | C&I | Extended term 12 months | | Residential | | | Term | Extended term 24 months |
| | | | | | | Payment Deferral & Term Extension | | Financial Effect | | Commercial | | | | | C&I | Temporary payment accommodation, payments deferred to end of loan; extended term 90 days | | Home Equity | | | Revolving and term | Temporary payment accommodation, payments deferred to end of loan; extended term 60 days |
The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. In its monitoring, the Company considers an event of payment default to be a payment past due thirty days or more, and counts all such events even if subsequently cured. The following tables depict the amortized cost basis of loans that had an event of payment default during the years ended December 31, 2025 and 2024 and were modified in the 12 months prior to that default: | | | | | | | | | | | | | Amortized Cost Basis | | As of December 31, 2025 | Payment Deferral | Combination Payment Deferral and Term Extension | Combination of Payment Deferral, Term & Rate Modification | | Commercial | | | | | Real estate owner occupied | $ | — | | $ | 338,000 | | $ | — | | | Real Estate non-owner occupied | — | | — | | 1,285,000 | | | | | | | C&I | 30,000 | | 181,000 | | — | | | | | | | Agriculture | 448,000 | | — | | — | | | Residential | | | | | Term | — | | 204,000 | | 352,000 | | | Home Equity | | | | | Revolving and term | — | | 359,000 | | — | | | | | | | Total | $ | 478,000 | | $ | 1,082,000 | | $ | 1,637,000 | |
| | | | | | | | | | | | | Amortized Cost Basis | | As of December 31, 2024 | Payment Deferral | Term Extension | Combination Payment Deferral and Term Extension | | Commercial | | | | | | | | | | | | | | | | | C&I | $ | 41,000 | | $ | 11,000 | | $ | 170,000 | | | | | | | | | | | Residential | | | | | Term | 449,000 | | 125,000 | | — | | | | | | | | | | | | | | | Total | $ | 490,000 | | $ | 136,000 | | $ | 170,000 | |
The following tables depict the performance of loans that have been modified during the years ended December 31, 2025 and 2024: | | | | | | | | | | | | | | | | Payment Status (Amortized Cost Basis) | | As of December 31, 2025 | Current | 30-59 Days
Past Due | 60-89 Days
Past Due | 90+ Days
Past Due | | Commercial | | | | | | Real estate owner occupied | $ | 1,079,000 | | $ | — | | $ | — | | $ | 337,000 | | | Real estate non-owner occupied | 427,000 | | — | | — | | 1,285,000 | | | Construction | — | | — | | — | | — | | | C&I | 1,675,000 | | 30,000 | | — | | 181,000 | | | Multifamily | 4,930,000 | | — | | — | | — | | | Agriculture | 1,503,000 | | 237,000 | | — | | 211,000 | | | Residential | | | | | | Term | 482,000 | | — | | — | | 556,000 | | | Home Equity | | | | | | Revolving and term | — | | — | | | 360,000 | | | Consumer | — | | — | | — | | — | | | Total | $ | 10,096,000 | | $ | 267,000 | | $ | — | | $ | 2,930,000 | |
| | | | | | | | | | | | | | | | Payment Status (Amortized Cost Basis) | | As of December 31, 2024 | Current | 30-59 Days
Past Due | 60-89 Days
Past Due | 90+ Days
Past Due | | Commercial | | | | | | Real estate owner occupied | $ | 633,000 | | $ | — | | $ | — | | $ | — | | | Real Estate non-owner occupied | — | | — | | — | | — | | | Construction | 69,000 | | — | | — | | — | | | C&I | 236,000 | | — | | — | | — | | | Multifamily | 1,932,000 | | — | | — | | — | | | Agriculture | — | | — | | — | | — | | | Residential | | | | | | Term | 570,000 | | 127,000 | | 449,000 | | — | | | Home Equity | | | | | | Revolving and term | 66,000 | | — | | — | | — | | | Consumer | — | | — | | — | | — | | | Total | $ | 3,506,000 | | $ | 127,000 | | $ | 449,000 | | $ | — | |
Loans in Process of Foreclosure As of December 31, 2025, there were seven mortgage loans collateralized by residential real estate with a total balance of $1,754,000 and one home equity line of credit collateralized by residential real estate with a balance of $63,000, in the process of foreclosure. There were also seven commercial loans collateralized by either residential real estate or owner-occupied commercial real estate with a total balance of $3,826,000, in the process of foreclosure. This compares to three mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $192,000 as of December 31, 2024.
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