v3.25.4
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
The ACL is a valuation amount 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 allowance when they are deemed uncollectible. The ACL consists of three elements: (1) specific reserves for loans individually analyzed; (2) general reserves for each portfolio segment; and, (3) qualitative reserves. All outstanding loans are considered in evaluating the appropriateness of the allowance. Loans are segmented by common risk characteristics as delineated in the paragraph below. The Company provides for loan losses through the ACL which represents an estimated reserve for losses in the loan portfolio. To determine an appropriate level for general reserves, a discounted cash flow approach is applied to each portfolio segment implementing a probability of default and loss given default estimate based upon a number of factors including historical losses over an economic cycle, economic forecasts, loan prepayment speeds and curtailment rates. To determine an appropriate level for qualitative reserves, various factors are
considered including underwriting policies, credit administration practices, experience, ability and depth of lending management, and economic factors not captured in the general reserve calculation.

Loan Portfolio Composition & Risk Characteristics: The loan portfolio is segmented into eleven classes and credit risk is evaluated separately in each class. Major risk characteristics relevant to each portfolio segment are as follows:
Commercial Real Estate Owner Occupied - commercial real estate owner occupied loans consist of mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties. Loans are typically written with amortizing payment structures. Collateral values are determined based on appraisals and evaluations in accordance with established policy and regulatory guidelines. Loans typically have a loan-to-value ratio of up to 80% based upon current valuation information at the time the loan is made, and are primarily paid by the cash flow generated from the real property, typically the operating entity of owner occupant. Risk factors typically include competitive market forces, net operating incomes of the operating entity, and overall economic demand. Loans in the recreational and tourism sector can be affected by weather conditions, such as unseasonably low winter snowfalls. Commercial real estate lending also carries a higher degree of environmental risk than other types of lending.
Commercial Real Estate Non-Owner Occupied - commercial real estate loans non-owner occupied share many of the purpose, loan structure and risk characteristics of owner-occupied commercial real estate. The primary differentiating factor from Owner Occupied is that repayment is generally reliant upon cash flow generated from tenants rather than an operating entity. Risk factors are also influenced by vacancy rates, cap rates, lease renewals, and underlying financial health of lessees.
Commercial Construction - commercial construction loans consist of loans to finance construction in a mix of owner- and non-owner occupied commercial real estate properties. Loans typically have construction periods of less than two years, and payment structures during the construction period are typically on an interest only basis, although principal payments may be established depending on the type of construction project being financed. During the construction phase, commercial construction loans are primarily paid by cash flow generated from the construction project or other operating cash flows from the borrower or guarantors, if applicable. Commercial construction loans will typically convert to permanent financing from the Company, or loan repayment may come from a third party source in the event that the Company will not be providing permanent term financing. Collateral valuation and loan-to-value guidelines follow those for commercial real estate loans. Commercial construction loans are impacted by factors similar to those for commercial real estate loans in addition to risks related to contractor financial capacity and ability to complete a project within acceptable time frames and within budget.
Commercial and Industrial - C&I loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and or capital investment. C&I loans may be secured or unsecured; when secured, collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, equipment, and/or other tangible and intangible assets. C&I loans are primarily paid by the operating cash flow of the borrower. A weakened economy, soft consumer spending, and the rising cost of labor or raw materials are examples of issues that can impact the credit quality in this segment.
Commercial Multifamily - multifamily loans share structure and risk characteristics with non-owner occupied commercial real estate; underlying collateral is residential in nature rather than commercial, consisting of properties with five or more units.
Municipal Loans - municipal loans are comprised of loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes. All municipal loans are considered either general obligations of the municipality collateralized by the taxing ability of the municipality for repayment of debt or have a pledge of specific revenues. The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment.
Agriculture - agriculture loans consist mostly of amortizing term loans and revolving lines of credit made to borrowers in agriculture related industries. For the Company, this includes loans made to land-based agricultural production and to participants in the fishing industry. Collateral values are determined based on appraisals and evaluations in accordance with established policy and regulatory guidelines. Loans are primarily paid by the cash flow generated from the agricultural property or operation of equipment. Risk factors typically include competitive market forces, overall economic demand for the product, and may be further influenced by weather conditions which impact growing and/or harvesting, or other factors such as changes in government regulation(s).
Residential Real Estate Term - residential term loans consist of residential real estate loans made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and loan-to-value ratios within established policy and regulatory guidelines. Collateral values are determined based on appraisals and evaluations in accordance with established policy and regulatory guidelines. Residential loans typically have a loan-to-value ratio of up to 80% based on appraisal information at the time the loan is made. Collateral consists of mortgage liens on one-to four-family residential properties. Loans are offered with fixed or adjustable rates with amortization terms of up to thirty years. The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment.
Residential Real Estate Construction - residential construction loans typically consist of loans for the purpose of constructing single family residences to be owned and occupied by the borrower. Borrower qualifications include favorable credit history combined
with supportive income requirements and loan-to-value ratios within established policy and regulatory guidelines. Residential construction loans normally have construction terms one year or less and payment during the construction term is typically on an interest only basis from sources including interest reserves, borrower liquidity, and/or income. Residential construction loans will typically convert to permanent financing from the Company or have another financing commitment in place from an acceptable mortgage lender. Collateral valuation and loan-to-value guidelines are consistent with those for residential term loans. Residential construction loans are impacted by factors similar to those for residential real estate term loans in addition to risks related to contractor financial capacity and ability to complete a project within acceptable time frames and within budget.
Home Equity Revolving and Term - home equity revolving and term loans are made to qualified individuals and are secured by senior or junior mortgage liens on owner occupied one- to four-family homes, condominiums, or vacation homes. The home equity line of credit typically has a variable interest rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Loan maturities are normally 300 months. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios usually not exceeding 80% inclusive of priority liens. Collateral valuation guidelines follow those for residential real estate loans. The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment.
Consumer - consumer loans include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured. The overall health of the economy, including unemployment rates, has an impact on the credit quality of this segment.

Construction, land, and land development: CLLD loans, both commercial and residential, represented 22.8% of total Bank capital as of December 31, 2025 and remain below the regulatory guidance of 100.0% of total Bank capital. Construction loans and non-owner-occupied commercial real estate loans represented 207.1% of total Bank capital at December 31, 2025, below the regulatory guidance of 300.0% of total Bank capital.

Composition of the ACL: The following table summarizes the composition of the ACL, by class of financing receivable and allowance, as of December 31, 2025 and 2024:
As of December 31,20252024
Allowance for Individually Analyzed Loans
Commercial
   Real estate owner occupied$377,000 $— 
   Real estate non-owner occupied1,209,000 — 
   Construction— — 
   C&I961,000 1,047,000 
   Multifamily— — 
  Agriculture— — 
Municipal— — 
Residential
   Term87,000 — 
   Construction— — 
Home Equity
   Revolving and term106,000 — 
Consumer— — 
Total$2,740,000 $1,047,000 
Allowance for Pooled Loans
Commercial
   Real estate owner occupied$4,967,000 $5,045,000 
   Real estate non-owner occupied4,611,000 4,829,000 
   Construction250,000 944,000 
   C&I4,062,000 4,317,000 
   Multifamily826,000 1,239,000 
  Agriculture519,000 605,000 
Municipal193,000 262,000 
Residential
   Term5,862,000 5,241,000 
   Construction299,000 474,000 
Home Equity
   Revolving and term852,000 686,000 
Consumer184,000 182,000 
Total$22,625,000 $23,824,000 
Total Allowance for Credit Losses
Commercial  
   Real estate owner occupied$5,344,000 $5,045,000 
   Real estate non-owner occupied5,820,000 4,829,000 
   Construction250,000 944,000 
   C&I5,023,000 5,364,000 
   Multifamily826,000 1,239,000 
  Agriculture519,000 605,000 
Municipal193,000 262,000 
Residential
   Term5,949,000 5,241,000 
   Construction299,000 474,000 
Home Equity
   Revolving and term958,000 686,000 
Consumer184,000 182,000 
Total$25,365,000 $24,871,000 
A breakdown of the ACL as of December 31, 2025 and 2024, by class of financing receivable and allowance element, is presented in the following tables:
As of December 31, 2025Specific Reserves on Loans Evaluated IndividuallyGeneral Reserves on Loans Based on Historical Loss ExperienceReserves for Qualitative FactorsTotal Reserves
Commercial
   Real estate owner occupied$377,000 $4,173,000 $794,000 $5,344,000 
   Real estate non-owner occupied1,209,000 3,979,000 632,000 5,820,000 
   Construction— 194,000 56,000 250,000 
   C&I961,000 3,522,000 540,000 5,023,000 
   Multifamily— 669,000 157,000 826,000 
   Agriculture— 472,000 47,000 519,000 
Municipal— 33,000 160,000 193,000 
Residential
   Term87,000 5,270,000 592,000 5,949,000 
   Construction— 249,000 50,000 299,000 
Home Equity
   Revolving and term106,000 747,000 105,000 958,000 
Consumer— 174,000 10,000 184,000 
$2,740,000 $19,482,000 $3,143,000 $25,365,000 

As of December 31, 2024Specific Reserves on Loans Evaluated IndividuallyGeneral Reserves on Loans Based on Historical Loss ExperienceReserves for Qualitative FactorsTotal Reserves
Commercial
Real estate owner occupied$— $4,355,000 $690,000 $5,045,000 
Real estate non-owner occupied— 4,237,000 592,000 4,829,000 
Construction— 786,000 158,000 944,000 
C&I1,047,000 3,744,000 573,000 5,364,000 
Multifamily— 1,108,000 131,000 1,239,000 
Agriculture— 449,000 156,000 605,000 
Municipal— 35,000 227,000 262,000 
Residential
Term— 4,811,000 430,000 5,241,000 
Construction— 414,000 60,000 474,000 
Home Equity
Revolving and term— 600,000 86,000 686,000 
Consumer— 175,000 7,000 182,000 
 $1,047,000 $20,714,000 $3,110,000 $24,871,000 
The ACL as a percent of total loans stood at 1.06% as of December 31, 2025, and December 31, 2024.
Off-Balance Sheet Credit Exposures: In the ordinary course of business, the Company enters into commitments to extend credit, including construction lines of credit, revolving lines of credit, written commitments to provide financing, commercial letters of credit and standby letters of credit. Such financial instruments are recorded as loans when they are funded.

Allowance for Credit Losses on 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. The ACL on off-balance sheet credit exposures is adjusted through credit loss expense and any adjustment is recognized in net income. To appropriately measure expected credit losses, management disaggregates off-balance sheet credit exposures into similar risk characteristics, identical to those determined for the loan portfolio. An estimated funding rate is then applied to the qualifying unfunded loan commitments and letters of credit using the Company’s own historical experience to estimate the expected funded amount for each loan segment as of the reporting date. Once the expected funded amount for each loan segment is determined, the loss rate, which is the calculated expected loan loss as a percent of the amortized cost basis for each loan segment, is applied to calculate the ACL on off-balance sheet credit exposures as of the reporting date. The Company’s ACL on unfunded commitments is recognized as a liability, included within other liabilities on the consolidated balance sheets.

The following table presents the activity in the ACL for off-balance sheet credit exposures for the years ended December 31, 2025 and 2024:
For the years ended December 31,20252024
Allowance for credit losses:
Beginning balance$714,000 $1,255,000 
Credit loss reduction(149,000)(541,000)
Total ending allowance balance$565,000 $714,000 
Credit Quality Indicators: To monitor the credit quality of its loan portfolio, management applies an internal risk rating system to categorize commercial loan segments. Approximately 60% of commercial loan outstanding balances are subject to review and validation annually by an independent consulting firm. Additionally, commercial loan relationships with exposure greater than or equal to $1,000,000 are subject to review annually by the Company's internal credit review function.
The risk rating system has eight levels, defined as follows:
1    Strong
Credits rated "1" are characterized by borrowers fully responsible for the credit with excellent capacity to pay principal and interest. Loans rated "1" may be secured with acceptable forms of liquid collateral.
2    Above Average
Credits rated "2" are characterized by borrowers that have better than average liquidity, capitalization, earnings, and/or cash flow with a consistent record of solid financial performance.
3    Satisfactory
Credits rated "3" are characterized by borrowers with favorable liquidity, profitability, and financial condition with adequate cash flow to pay debt service.
4    Average
Credits rated "4" are characterized by borrowers that present more risk than 1, 2 and 3 rated loans and merit an ordinary level of ongoing monitoring. Financial condition is on par or somewhat below industry averages while cash flow is generally adequate to meet debt service requirements.
5    Watch
Credits rated "5" are characterized by borrowers that warrant greater monitoring due to financial condition or unresolved and identified risk factors.
6    Other Assets Especially Mentioned
Loans in this category are currently protected but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. OAEM have potential weaknesses which may, if not checked or corrected, weaken the asset or inadequately protect the Company's credit position at some future date.
7    Substandard
Loans in this category are inadequately protected by the paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected.
8    Doubtful
Loans classified "Doubtful" have the same weaknesses as those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.
Most residential real estate, home equity, and consumer loans are not assigned ratings; therefore they are categorized as performing and non-performing loans. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due more than 90 days are considered non-performing.
The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as of December 31, 2025:
Term Loans Amortized Cost Basis by Origination Year
Dollars in thousands20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2025
Commercial
  Real estate owner occupied
    Pass (risk rating 1-5)$54,972 $43,055 $65,526 $64,412 $33,137 $94,034 $9,906 $— $365,042 
    Special Mention (risk rating 6)135 — — — — 930 — — 1,065 
    Substandard (risk rating 7)— 1,734 1,369 7,263 257 1,533 — — 12,156 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Real estate owner occupied55,107 44,789 66,895 71,675 33,394 96,497 9,906 — 378,263 
    Current period gross write-offs— — — — — (53)— — (53)
  Real estate non-owner occupied
    Pass (risk rating 1-5)56,787 31,264 38,156 65,396 97,598 103,651 11,713 — 404,565 
    Special Mention (risk rating 6)— — — 1,155 8 1,653 — — 2,816 
    Substandard (risk rating 7)1,421 252 62 — — 61 — — 1,796 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Real estate non-owner occupied58,208 31,516 38,218 66,551 97,606 105,365 11,713 — 409,177 
    Current period gross write-offs— — — — — — — — — 
  Construction
    Pass (risk rating 1-5)12,616 9,741 4,129 2,139 3,509 2,731 — — 34,865 
    Special Mention (risk rating 6)— — — — — — — — — 
    Substandard (risk rating 7)— 95 — — 65 — — — 160 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Construction12,616 9,836 4,129 2,139 3,574 2,731 — — 35,025 
    Current period gross write-offs— — — — — — — — — 
  C&I
    Pass (risk rating 1-5)49,189 66,218 44,355 37,597 33,302 30,562 88,210 22,540 371,973 
    Special Mention (risk rating 6)30 315 172 383 289 65 562 — 1,816 
    Substandard (risk rating 7)867 26 911 319 32 496 467 — 3,118 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total C&I50,086 66,559 45,438 38,299 33,623 31,123 89,239 22,540 376,907 
    Current period gross write-offs— (47)(635)— (24)(627)— — (1,333)
  Agriculture
    Pass (risk rating 1-5)8,670 9,778 2,405 4,614 3,381 15,176 1,960 177 46,161 
    Special Mention (risk rating 6)— — — — — — — — — 
    Substandard (risk rating 7)1,323 90 254 211 — 106 — — 1,984 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Agriculture9,993 9,868 2,659 4,825 3,381 15,282 1,960 177 48,145 
    Current period gross write-offs— — — — (27)— — — (27)
  Multifamily
    Pass (risk rating 1-5)45,208 16,212 8,366 44,110 17,488 19,093 768 — 151,245 
    Special Mention (risk rating 6)160 — 1,600 — 271 — — — 2,031 
    Substandard (risk rating 7)— 2,411 — 1,020 1,307 896 — — 5,634 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Multifamily45,368 18,623 9,966 45,130 19,066 19,989 768 — 158,910 
    Current period gross write-offs— — — — — — — — — 
Term Loans Amortized Cost Basis by Origination Year
Dollars in thousands20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2025
Municipal
    Pass (risk rating 1-5)6,274 6,872 16,482 2,798 4,287 15,361 — — 52,074 
    Special Mention (risk rating 6)— — — — — — — — — 
    Substandard (risk rating 7)— — — — — — — — — 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Municipal6,274 6,872 16,482 2,798 4,287 15,361 — — 52,074 
    Current period gross write-offs— — — — — — — — — 
Residential
  Term
    Performing67,304 83,037 86,924 138,568 113,437 244,356 1,251 118 734,995 
    Non-performing391 166 51 604 954 2,027 — — 4,193 
  Total Term67,695 83,203 86,975 139,172 114,391 246,383 1,251 118 739,188 
    Current period gross write-offs— — — — — (1)— — (1)
  Construction
    Performing31,024 3,785 108 415 — — — — 35,332 
    Non-performing— — — — — — — — — 
  Total Construction31,024 3,785 108 415 — — — — 35,332 
    Current period gross write-offs— — — — — — — — — 
Home equity revolving and term
    Performing9,488 11,274 7,782 7,396 1,558 2,266 92,710 8,800 141,274 
    Non-performing— 136 14 80 242 203 88 182 945 
  Total Home equity revolving and term9,488 11,410 7,796 7,476 1,800 2,469 92,798 8,982 142,219 
    Current period gross write-offs— — — — — — — — — 
Consumer
    Performing2,133 1,761 1,464 621 146 5,541 7,198 — 18,864 
    Non-performing— — — — — 5 — — 5 
  Total Consumer2,133 1,761 1,464 621 146 5,546 7,198 — 18,869 
    Current period gross write-offs(20)(60)(42)(23)(23)(161)— — (329)
Total loans$347,992 $288,222 $280,130 $379,101 $311,268 $540,746 $214,833 $31,817 $2,394,109 
The following table summarizes the credit quality for the Company's portfolio by risk category of loans and by class by vintage as of December 31, 2024:
Term Loans Amortized Cost Basis by Origination Year
Dollars in thousands20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2024
Commercial
  Real estate owner occupied
    Pass (risk rating 1-5)$47,724 $62,376 $77,469 $39,635 $26,448 $81,529 $10,727 $1,126 $347,034 
    Special Mention (risk rating 6)125 3,026 5,334 — 195 1,603 50 — 10,333 
    Substandard (risk rating 7)41 261 — 257 160 502 — — 1,221 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Real estate owner occupied47,890 65,663 82,803 39,892 26,803 83,634 10,777 1,126 358,588 
    Current period gross write-offs— — — — — — — — — 
  Real estate non-owner occupied
    Pass (risk rating 1-5)33,083 29,546 72,025 113,630 45,421 96,778 11,241 1,520 403,244 
    Special Mention (risk rating 6)— 62 — 44 — 199 — — 305 
    Substandard (risk rating 7)289 — — — — 61 — — 350 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Real estate non-owner occupied33,372 29,608 72,025 113,674 45,421 97,038 11,241 1,520 403,899 
    Current period gross write-offs— — — — — — — — — 
  Construction
    Pass (risk rating 1-5)36,478 22,629 26,650 7,826 1,356 2,314 — — 97,253 
    Special Mention (risk rating 6)— — 2,007 44 — 199 — — 2,250 
    Substandard (risk rating 7)145 — — 69 — — — — 214 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Construction36,623 22,629 28,657 7,939 1,356 2,513 — — 99,717 
    Current period gross write-offs— — — — — — — — — 
  C&I
    Pass (risk rating 1-5)69,543 50,204 45,986 39,217 14,958 25,284 114,567 778 360,537 
    Special Mention (risk rating 6)25 15 561 478 723 — 900 — 2,702 
    Substandard (risk rating 7)473 1,227 356 30 15 19 200 — 2,320 
    Doubtful (risk rating 8)— — — — — 258 — — 258 
  Total C&I70,041 51,446 46,903 39,725 15,696 25,561 115,667 778 365,817 
    Current period gross write-offs— (128)(39)(72)(47)(165)— — (451)
  Agriculture
    Pass (risk rating 1-5)11,694 2,749 5,790 3,835 14,651 6,023 4,546 215 49,503 
    Special Mention (risk rating 6)— 474 — 52 — 152 600 — 1,278 
    Substandard (risk rating 7)— 75 731 30 — 602 — — 1,438 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Agriculture11,694 3,298 6,521 3,917 14,651 6,777 5,146 215 52,219 
    Current period gross write-offs— — — — — — — — — 
  Multifamily
    Pass (risk rating 1-5)14,048 13,102 33,558 17,335 14,483 12,152 781 — 105,459 
    Special Mention (risk rating 6)— — — — — — — — — 
    Substandard (risk rating 7)— — 1,020 1,341 912 — — — 3,273 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Multifamily14,048 13,102 34,578 18,676 15,395 12,152 781 — 108,732 
    Current period gross write-offs— — — — — — — — — 
Term Loans Amortized Cost Basis by Origination Year
Dollars in thousands20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2024
Municipal
    Pass (risk rating 1-5)9,503 18,642 4,017 3,822 8,498 17,345 — — 61,827 
    Special Mention (risk rating 6)— — — — — — — — — 
    Substandard (risk rating 7)— — — — — — — — — 
    Doubtful (risk rating 8)— — — — — — — — — 
  Total Municipal9,503 18,642 4,017 3,822 8,498 17,345 — — 61,827 
    Current period gross write-offs— — — — — — — — — 
Residential
  Term
    Performing56,378 94,816 148,877 130,413 84,028 192,466 2,109 121 709,208 
    Non-performing— — 297 257 380 665 — — 1,599 
  Total Term56,378 94,816 149,174 130,670 84,408 193,131 2,109 121 710,807 
    Current period gross write-offs— — — — — (37)— — (37)
  Construction
    Performing26,386 7,487 925 — 683 — — — 35,481 
    Non-performing— — — — — — — — — 
  Total Construction26,386 7,487 925 — 683 — — — 35,481 
    Current period gross write-offs— — — — — — — — — 
Home equity revolving and term
    Performing12,449 8,917 8,310 1,894 1,021 1,857 79,132 9,192 122,772 
    Non-performing— — — — — 96 15 180 291 
  Total home equity revolving and term12,449 8,917 8,310 1,894 1,021 1,953 79,147 9,372 123,063 
    Current period gross write-offs— — — — — (7)— — (7)
Consumer
    Performing3,146 2,438 1,218 734 1,114 5,805 6,335 — 20,790 
    Non-performing— — — — — — — — — 
  Total Consumer3,146 2,438 1,218 734 1,114 5,805 6,335 — 20,790 
    Current period gross write-offs(13)(53)(72)(39)(20)(55)— — (252)
Total loans$321,530 $318,046 $435,131 $360,943 $215,046 $445,909 $231,203 $13,132 $2,340,940 
The following table presents ACL activity by class for the year ended December 31, 2025:
CommercialMunicipalResidentialHome EquityConsumerTotal
Dollars in thousandsReal Estate Owner OccupiedReal Estate Non-Owner OccupiedConstructionC&IMultifamilyAgricultureTermConstructionRevolving and Term
For the year ended December 31, 2025
Beginning balance$5,045 $4,829 $944 $5,364 $1,239 $605 $262 $5,241 $474 $686 $182 $24,871 
Chargeoffs(53)— — (1,333)— (27)— (1)— — (329)(1,743)
Recoveries— — — 76 — — — 7 — 16 89 188 
Credit loss expense (reduction) 352 991 (694)916 (413)(59)(69)702 (175)256 242 2,049 
Ending balance$5,344 $5,820 $250 $5,023 $826 $519 $193 $5,949 $299 $958 $184 $25,365 
The following table presents ACL activity by class for the year ended December 31, 2024:
CommercialMunicipalResidentialHome Equity
ConsumerTotal
Dollars in thousandsReal Estate Owner OccupiedReal Estate Non-Owner OccupiedConstructionC&IMultifamilyAgricultureTermConstructionRevolving and term
For the year ended December 31, 2024
Beginning balance$4,633 $4,285 $1,978 $5,001 $1,318 $— $334 $4,991 $618 $626 $246 $24,030 
Chargeoffs— — — (451)— — — (37)— (7)(252)(747)
Recoveries100 — — 25 — — — 32 — 24 103 284 
Credit loss expense (reduction) 312 544 (1,034)789 (79)605 (72)255 (144)43 85 1,304 
Ending balance$5,045 $4,829 $944 $5,364 $1,239 $605 $262 $5,241 $474 $686 $182 $24,871 
The following table presents allowance for loan losses activity by class for the year ended December 31, 2023:
CommercialMunicipalResidentialHome Equity
ConsumerUnallocatedTotal
Dollars in thousandsReal Estate Owner OccupiedReal Estate Non-Owner OccupiedConstructionC&IMultifamilyTermConstructionRevolving and term
For the year ended December 31, 2023
Beginning balance prior to adoption of ASC 326$6,116 $— $821 $3,097 $— $162 $2,559 $199 $1,029 $1,062 $1,678 $16,723 
Chargeoffs(40)— — (153)— — — — (50)(194)— (437)
Recoveries2 75 — 3 — — 14 — 13 97 — 204 
Credit loss expense (reduction) 241 (105)214 409 134 40 540 (316)90 83 — 1,330 
Impact of adopting ASC 326$(1,686)$4,315 $943 $1,645 $1,184 $132 $1,878 $735 $(456)$(802)$(1,678)$6,210 
Ending balance$4,633 $4,285 $1,978 $5,001 $1,318 $334 $4,991 $618 $626 $246 $— $24,030 
As of December 31, 2025 and 2024, the significant model inputs and assumptions used within the discounted cash flow model for purposes of estimating the ACL on loans were:

Macroeconomic (loss) drivers: The following loss drivers for each loan segment were used to calculate the expected probability of default over the forecast and reversion period:

•Commercial Real Estate Owner Occupied: FOMC median forecasts of national unemployment
•Commercial Real Estate Non-Owner Occupied: FOMC median forecasts of national unemployment
•Commercial Construction: FOMC median forecasts of national unemployment and change in national real GDP
•Commercial & Industrial: FOMC median forecasts of national unemployment and change in national real GDP
•Commercial Multifamily: FOMC median forecast of national unemployment
•Commercial Agriculture: FOMC median forecasts of national unemployment and change in national real GDP
•Municipal: Probability of default is measured based upon an index supplied by a nationally recognized ratings agency
•Residential Real Estate Term: FOMC median forecasts of national unemployment
•Residential Real Estate Construction: FOMC median forecast of national unemployment and change in national real GDP
•Home Equity Revolving & Term: FOMC median forecasts of national unemployment
•Consumer: FOMC median forecast of national unemployment and forecasted retail sales sourced from nationally known provider
Reasonable and supportable forecast period: The ACL on loans estimate used a reasonable and supportable forecast period of one year.
Reversion period: The ACL on loans estimate used a reversion period of one year.
Prepayment speeds: The estimate of prepayment speed for each loan segment is updated quarterly and derived using internally sourced prepayment data.
Qualitative factors: The ACL on loans estimate incorporated various qualitative factors into the calculation such as changes in lending policies, changes in the nature and volume and terms of loans, changes in the experience, depth and ability of lending management, and economic factors not captured in the quantitative model.