| Loans and Allowance for Credit Losses on Loans |
Loans and Allowance for Credit Losses on Loans The allowance for credit losses on loans was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The loan portfolio is classified into eight segments of loans - commercial, commercial real estate – owner occupied, commercial real estate – non-owner occupied, land and construction, home equity, multifamily, residential mortgage and consumer and other. See Note 1 – Summary of Significant Accounting Polices - Allowance for Credit Losses on Loans for the summary of risk characteristics of each loan segment. Loan Distribution Loans by portfolio segment and the allowance for credit losses on loans were as follows at the dates indicated: | | | | | | | | | | | | | December 31,
2025 | | December 31,
2024 | | | | | | (Dollars in thousands) | | Loans held-for-investment: | | | | | Commercial | $ | 550,362 | | | $ | 531,350 | | | Real estate: | | | | | CRE - owner occupied | 623,293 | | | 601,636 | | | CRE - non-owner occupied | 1,475,061 | | | 1,341,266 | | | Land and construction | 133,558 | | | 127,848 | | | Home equity | 126,085 | | | 127,963 | | | Multifamily | 295,602 | | | 275,490 | | | Residential mortgages | 432,241 | | | 471,730 | | | Consumer and other | 17,366 | | | 14,837 | | | Loans | 3,653,568 | | | 3,492,120 | | | Deferred loan fees, net | (508) | | | (183) | | | Loans, net of deferred fees | 3,653,060 | | | 3,491,937 | | | Allowance for credit losses on loans | (49,999) | | | (48,953) | | | Loans, net | $ | 3,603,061 | | | $ | 3,442,984 | |
Changes in the allowance for credit losses on loans were as follows for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | Commercial | | CRE
Owner
Occupied | | CRE
Non-owner
Occupied | | Land &
Construction | | Home
Equity | | Multi-
Family | | Residential
Mortgages | | Consumer
and Other | | Total | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Beginning of period balance | $ | 6,060 | | | $ | 5,225 | | | $ | 26,779 | | | $ | 1,400 | | | $ | 798 | | | $ | 4,735 | | | $ | 3,618 | | | $ | 338 | | | $ | 48,953 | | | Charge-offs | (1,241) | | | — | | | — | | | — | | | — | | | — | | | — | | | (197) | | | (1,438) | | | Recoveries | 136 | | | 43 | | | — | | | — | | | 296 | | | — | | | — | | | 193 | | | 668 | | | Net (charge-offs) recoveries | (1,105) | | | 43 | | | — | | | — | | | 296 | | | — | | | — | | | (4) | | | (770) | | | Provision for (recapture of) credit losses on loans | 418 | | | 816 | | | 1,675 | | | 639 | | | (256) | | | (434) | | | (904) | | | (138) | | | 1,816 | | | End of period balance | $ | 5,373 | | | $ | 6,084 | | | $ | 28,454 | | | $ | 2,039 | | | $ | 838 | | | $ | 4,301 | | | $ | 2,714 | | | $ | 196 | | | $ | 49,999 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2024 | | Commercial | | CRE
Owner
Occupied | | CRE
Non-owner
Occupied | | Land &
Construction | | Home
Equity | | Multi-
Family | | Residential
Mortgages | | Consumer
and Other | | Total | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Beginning of period balance | $ | 5,853 | | | $ | 5,121 | | | $ | 25,323 | | | $ | 2,352 | | | $ | 644 | | | $ | 5,053 | | | $ | 3,425 | | | $ | 187 | | | $ | 47,958 | | | Charge-offs | (1,305) | | | — | | | — | | | — | | | — | | | — | | | — | | | (299) | | | (1,604) | | | Recoveries | 336 | | | 27 | | | — | | | — | | | 97 | | | — | | | — | | | — | | | 460 | | | Net (charge-offs) recoveries | (969) | | | 27 | | | — | | | — | | | 97 | | | — | | | — | | | (299) | | | (1,144) | | | Provision for (recapture of) credit losses on loans | 1,176 | | | 77 | | | 1,456 | | | (952) | | | 57 | | | (318) | | | 193 | | | 450 | | | 2,139 | | | End of period balance | $ | 6,060 | | | $ | 5,225 | | | $ | 26,779 | | | $ | 1,400 | | | $ | 798 | | | $ | 4,735 | | | $ | 3,618 | | | $ | 338 | | | $ | 48,953 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2023 | | Commercial | | CRE
Owner
Occupied | | CRE
Non-owner
Occupied | | Land &
Construction | | Home
Equity | | Multi-
Family | | Residential
Mortgages | | Consumer
and Other | | Total | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Beginning of period balance | $ | 6,617 | | | $ | 5,751 | | | $ | 22,135 | | | $ | 2,941 | | | $ | 666 | | | $ | 3,366 | | | $ | 5,907 | | | $ | 129 | | | $ | 47,512 | | | Charge-offs | (750) | | | — | | | — | | | — | | | (246) | | | — | | | — | | | (15) | | | (1,011) | | | Recoveries | 346 | | | 11 | | | — | | | — | | | 351 | | | — | | | — | | | — | | | 708 | | | Net (charge-offs) recoveries | (404) | | | 11 | | | — | | | — | | | 105 | | | — | | | — | | | (15) | | | (303) | | | Provision for (recapture of) credit losses on loans | (360) | | | (641) | | | 3,188 | | | (589) | | | (127) | | | 1,687 | | | (2,482) | | | 73 | | | 749 | | | End of period balance | $ | 5,853 | | | $ | 5,121 | | | $ | 25,323 | | | $ | 2,352 | | | $ | 644 | | | $ | 5,053 | | | $ | 3,425 | | | $ | 187 | | | $ | 47,958 | |
The following table presents the amortized cost basis of nonaccrual loans and loans past due over 90 days and still accruing at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Nonaccrual
with no Specific
Allowance for
Credit
Losses | | Nonaccrual
with Specific
Allowance for
Credit
Losses | | Loans
over 90 Days
Past Due
and Still
Accruing | | Total | | | | | | | | | | (Dollars in thousands) | | Commercial | $ | 41 | | | $ | 313 | | | $ | 735 | | | $ | 1,089 | | | Real estate: | | | | | | | | | CRE - Owner Occupied | 31 | | | — | | | — | | | 31 | | | CRE - Non-Owner Occupied | — | | | — | | | — | | | — | | | Land and construction | 1,663 | | | — | | | — | | | 1,663 | | | | | | | | | | | | | | | | | | | Total | $ | 1,735 | | | $ | 313 | | | $ | 735 | | | $ | 2,783 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | Nonaccrual
with no Specific
Allowance for
Credit
Losses | | Nonaccrual
with Specific
Allowance for
Credit
Losses | | Loans
over 90 Days
Past Due
and Still
Accruing | | Total | | | | | | | | | | (Dollars in thousands) | | Commercial | $ | 313 | | | $ | 701 | | | $ | 489 | | | $ | 1,503 | | | Real estate: | | | | | | | | | CRE - Owner Occupied | — | | | — | | | — | | | — | | | CRE - Non-Owner Occupied | — | | | — | | | — | | | — | | | Land and construction | 5,874 | | | — | | | — | | | 5,874 | | | Home equity | 77 | | | — | | | — | | | 77 | | | Consumer and other | — | | | 213 | | | — | | | 213 | | | Total | $ | 6,264 | | | $ | 914 | | | $ | 489 | | | $ | 7,667 | |
The following tables presents the aging of past due loans by class at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | 30 - 59
Days
Past Due | | 60 - 89
Days
Past Due | | 90 Days or
Greater
Past Due | | Total
Past Due | | Current | | Total | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial | $ | 16,058 | | | $ | 4,140 | | | $ | 1,046 | | | $ | 21,244 | | | $ | 529,118 | | | $ | 550,362 | | | Real estate: | | | | | | | | | | | | | CRE - Owner Occupied | — | | | — | | | 31 | | | 31 | | | 623,262 | | | 623,293 | | | CRE - Non-Owner Occupied | 101 | | | — | | | — | | | 101 | | | 1,474,960 | | | 1,475,061 | | | Land and construction | — | | | — | | | 1,663 | | | 1,663 | | | 131,895 | | | 133,558 | | | Home equity | 131 | | | — | | | — | | | 131 | | | 125,954 | | | 126,085 | | | Multifamily | — | | | — | | | — | | | — | | | 295,602 | | | 295,602 | | | Residential mortgages | 1,057 | | | 833 | | | — | | | 1,890 | | | 430,351 | | | 432,241 | | | Consumer and other | — | | | — | | | — | | | — | | | 17,366 | | | 17,366 | | | Total | $ | 17,347 | | | $ | 4,973 | | | $ | 2,740 | | | $ | 25,060 | | | $ | 3,628,508 | | | $ | 3,653,568 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | 30 - 59
Days
Past Due | | 60 - 89
Days
Past Due | | 90 Days or
Greater
Past Due | | Total
Past Due | | Current | | Total | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial | $ | 7,364 | | | $ | 2,295 | | | $ | 1,393 | | | $ | 11,052 | | | $ | 520,298 | | | $ | 531,350 | | | Real estate: | | | | | | | | | | | | | CRE - Owner Occupied | 1,879 | | | — | | | — | | | 1,879 | | | 599,757 | | | 601,636 | | | CRE - Non-Owner Occupied | 4,479 | | | — | | | — | | | 4,479 | | | 1,336,787 | | | 1,341,266 | | | Land and construction | 4,290 | | | 2,323 | | | 5,874 | | | 12,487 | | | 115,361 | | | 127,848 | | | Home equity | 78 | | | 750 | | | — | | | 828 | | | 127,135 | | | 127,963 | | | Multifamily | — | | | — | | | — | | | — | | | 275,490 | | | 275,490 | | | Residential mortgages | 850 | | | — | | | — | | | 850 | | | 470,880 | | | 471,730 | | | Consumer and other | — | | | 117 | | | 213 | | | 330 | | | 14,507 | | | 14,837 | | | Total | $ | 18,940 | | | $ | 5,485 | | | $ | 7,480 | | | $ | 31,905 | | | $ | 3,460,215 | | | $ | 3,492,120 | |
The following table presents the past due loans on nonaccrual and current loans on nonaccrual at the dates indicated: | | | | | | | | | | | | | December 31,
2025 | | December 31,
2024 | | | | | | (Dollars in thousands) | | Past due nonaccrual loans | $ | 2,004 | | | $ | 7,068 | | | Current nonaccrual loans | 44 | | | 110 | | | Total nonaccrual loans | $ | 2,048 | | | $ | 7,178 | |
Management’s classification of a loan as “nonaccrual” is an indication that there is reasonable doubt as to the full recovery of principal or interest on the loan. At that point, the Company stops accruing interest income, and reverses any uncollected interest that had been accrued as income. The Company resumes recognizing interest income only as cash interest payments are received and it has been determined the collection of all outstanding principal is not in doubt. The Company recognized interest income of $38,000 and $107,000 on nonaccrual loans in 2025 and 2024, respectively. Credit Quality Indicators Concentrations of credit risk arise when a number of clients are engaged in similar business activities, or activities in the same geographic region, or have similar features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company’s loan portfolio is concentrated in commercial (primarily manufacturing, wholesale, and service) and real estate lending, with the remaining balance in consumer loans. While no specific industry concentration is considered significant, the Company’s lending operations are located in the Company’s market areas that are dependent on the technology and real estate industries and their supporting companies. Thus, the Company’s borrowers and their guarantors could be adversely impacted by a downturn in these sectors of the economy which could reduce the demand for loans and adversely impact the borrowers’ ability to repay their loans. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, and other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with their contractual loan terms. Loans categorized as special mention have potential weaknesses that may, if not checked or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weaknesses do not yet justify a substandard classification. Classified loans are those loans that are assigned a substandard, substandard-nonaccrual, or doubtful risk rating using the following definitions: Special Mention. A Special Mention asset has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that will jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard-Nonaccrual. Loans classified as substandard-nonaccrual are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any, and it is probable that the Company will not receive payment of the full contractual principal and interest. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. In addition, the Company no longer accrues interest on the loan because of the underlying weaknesses. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss. Loans classified as loss are considered uncollectable or of so little value that their continuance as assets is not warranted. This classification does not necessarily mean that a loan has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery would occur. Loans classified as loss are immediately charged off against the allowance for credit losses on loans. Therefore, there is no balance to report as of December 31, 2025 and December 31, 2024. Loans may be reviewed at any time throughout a loan’s duration. If new information is provided, a new risk assessment may be performed if warranted. The following tables present term loans amortized cost by vintage and loan grade classification, and revolving loans amortized cost by loan grade classification at December 31, 2025 and December 31, 2024. The loan grade classifications are based on the Bank’s internal loan grading methodology. Loan grade categories for doubtful and loss rated loans are not included on the tables below as there are no loans with those grades at December 31, 2025 and December 31, 2024. The vintage year represents the period the loan was originated or in the case of renewed loans, the period last renewed. The amortized balance is the loan balance less any purchase discounts, plus any loan purchase premiums. The loan categories are based on the loan segmentation in the Company's CECL reserve methodology based on loan purpose and type. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Originated Period as of December 31, 2025 | | Revolving
Loans
Amortized
Cost Basis | | Total | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior Periods | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial: | | | | | | | | | | | | | | | | | Pass | $ | 142,797 | | | $ | 25,094 | | | $ | 18,107 | | | $ | 11,402 | | | $ | 11,761 | | | $ | 26,193 | | | $ | 303,074 | | | $ | 538,428 | | | Special Mention | 1,792 | | | 931 | | | 516 | | | 214 | | | 157 | | | 262 | | | 3,412 | | | 7,284 | | | Substandard | — | | | — | | | — | | | 36 | | | 229 | | | 4,031 | | | — | | | 4,296 | | | Substandard-Nonaccrual | — | | | — | | | 270 | | | — | | | — | | | 84 | | | — | | | 354 | | | Total | 144,589 | | | 26,025 | | | 18,893 | | | 11,652 | | | 12,147 | | | 30,570 | | | 306,486 | | | 550,362 | | | | | | | | | | | | | | | | | | | CRE - Owner Occupied: | | | | | | | | | | | | | | | | | Pass | 79,782 | | | 51,885 | | | 27,009 | | | 73,180 | | | 94,462 | | | 283,512 | | | 6,692 | | | 616,522 | | | Special Mention | — | | | — | | | — | | | — | | | 52 | | | 1,660 | | | — | | | 1,712 | | | Substandard | — | | | — | | | — | | | — | | | 5,028 | | | — | | | — | | | 5,028 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | 31 | | | — | | | — | | | 31 | | | Total | 79,782 | | | 51,885 | | | 27,009 | | | 73,180 | | | 99,573 | | | 285,172 | | | 6,692 | | | 623,293 | | | | | | | | | | | | | | | | | | | CRE - Non-Owner Occupied: | | | | | | | | | | | | | | | | | Pass | 211,924 | | | 132,622 | | | 206,860 | | | 216,578 | | | 244,859 | | | 427,999 | | | 10,526 | | | 1,451,368 | | | Special Mention | — | | | — | | | — | | | 3,460 | | | 2,113 | | | 1,925 | | | — | | | 7,498 | | | Substandard | — | | | — | | | — | | | — | | | 4,322 | | | 11,273 | | | 600 | | | 16,195 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 211,924 | | | 132,622 | | | 206,860 | | | 220,038 | | | 251,294 | | | 441,197 | | | 11,126 | | | 1,475,061 | | | | | | | | | | | | | | | | | | | Land and construction: | | | | | | | | | | | | | | | | | Pass | 64,137 | | | 47,572 | | | 14,955 | | | 4,833 | | | — | | | 398 | | | — | | | 131,895 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | 685 | | | 978 | | | — | | | 1,663 | | | Total | 64,137 | | | 47,572 | | | 14,955 | | | 4,833 | | | 685 | | | 1,376 | | | — | | | 133,558 | | | | | | | | | | | | | | | | | | | Home equity: | | | | | | | | | | | | | | | | | Pass | — | | | — | | | — | | | — | | | — | | | 2,510 | | | 121,934 | | | 124,444 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | 131 | | | — | | | 131 | | | Substandard | — | | | — | | | — | | | — | | | — | | | — | | | 1,510 | | | 1,510 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | — | | | — | | | — | | | — | | | — | | | 2,641 | | | 123,444 | | | 126,085 | | | | | | | | | | | | | | | | | | | Multifamily: | | | | | | | | | | | | | | | | | Pass | 41,685 | | | 19,882 | | | 44,436 | | | 33,841 | | | 43,390 | | | 108,392 | | | 2,006 | | | 293,632 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | 1,970 | | | — | | | 1,970 | | | Substandard | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 41,685 | | | 19,882 | | | 44,436 | | | 33,841 | | | 43,390 | | | 110,362 | | | 2,006 | | | 295,602 | | | | | | | | | | | | | | | | | | | Residential mortgage: | | | | | | | | | | | | | | | | | Pass | 457 | | | 3,691 | | | 1,632 | | | 171,185 | | | 226,025 | | | 28,272 | | | — | | | 431,262 | | | Special Mention | — | | | — | | | — | | | — | | | 833 | | | — | | | — | | | 833 | | | Substandard | — | | | — | | | — | | | — | | | — | | | 146 | | | — | | | 146 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 457 | | | 3,691 | | | 1,632 | | | 171,185 | | | 226,858 | | | 28,418 | | | — | | | 432,241 | | | | | | | | | | | | | | | | | | | Consumer and other: | | | | | | | | | | | | | | | | | Pass | 6,044 | | | 69 | | | 178 | | | 94 | | | 22 | | | 1,882 | | | 8,727 | | | 17,016 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | — | | | 350 | | | 350 | | | Substandard | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 6,044 | | | 69 | | | 178 | | | 94 | | | 22 | | | 1,882 | | | 9,077 | | | 17,366 | | | | | | | | | | | | | | | | | | | Total loans | $ | 548,618 | | | $ | 281,746 | | | $ | 313,963 | | | $ | 514,823 | | | $ | 633,969 | | | $ | 901,618 | | | $ | 458,831 | | | $ | 3,653,568 | | | | | | | | | | | | | | | | | | | Risk Grades: | | | | | | | | | | | | | | | | | Pass | $ | 546,826 | | | $ | 280,815 | | | $ | 313,177 | | | $ | 511,113 | | | $ | 620,519 | | | $ | 879,158 | | | $ | 452,959 | | | $ | 3,604,567 | | | Special Mention | 1,792 | | | 931 | | | 516 | | | 3,674 | | | 3,155 | | | 5,948 | | | 3,762 | | | 19,778 | | | Substandard | — | | | — | | | — | | | 36 | | | 9,579 | | | 15,450 | | | 2,110 | | | 27,175 | | | Substandard-Nonaccrual | — | | | — | | | 270 | | | — | | | 716 | | | 1,062 | | | — | | | 2,048 | | | Grand Total | $ | 548,618 | | | $ | 281,746 | | | $ | 313,963 | | | $ | 514,823 | | | $ | 633,969 | | | $ | 901,618 | | | $ | 458,831 | | | $ | 3,653,568 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Originated Period as of December 31, 2024 | | Revolving
Loans
Amortized
Cost Basis | | Total | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior Periods | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial: | | | | | | | | | | | | | | | | | Pass | $ | 133,643 | | | $ | 27,101 | | | $ | 17,114 | | | $ | 16,312 | | | $ | 10,444 | | | $ | 28,671 | | | $ | 289,147 | | | $ | 522,432 | | | Special Mention | 1,927 | | | — | | | 327 | | | 86 | | | — | | | 358 | | | 423 | | | 3,121 | | | Substandard | — | | | 146 | | | — | | | 32 | | | — | | | 4,405 | | | 200 | | | 4,783 | | | Substandard-Nonaccrual | — | | | — | | | 591 | | | 209 | | | — | | | 214 | | | — | | | 1,014 | | | Total | 135,570 | | | 27,247 | | | 18,032 | | | 16,639 | | | 10,444 | | | 33,648 | | | 289,770 | | | 531,350 | | | | | | | | | | | | | | | | | | | CRE - Owner Occupied: | | | | | | | | | | | | | | | | | Pass | 57,988 | | | 31,688 | | | 81,133 | | | 95,939 | | | 65,152 | | | 244,430 | | | 6,899 | | | 583,229 | | | Special Mention | — | | | — | | | — | | | 7,132 | | | 443 | | | 1,342 | | | — | | | 8,917 | | | Substandard | — | | | — | | | — | | | 6,333 | | | 3,157 | | | — | | | — | | | 9,490 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 57,988 | | | 31,688 | | | 81,133 | | | 109,404 | | | 68,752 | | | 245,772 | | | 6,899 | | | 601,636 | | | | | | | | | | | | | | | | | | | CRE - Non-Owner Occupied: | | | | | | | | | | | | | | | | | Pass | 137,935 | | | 222,142 | | | 229,993 | | | 250,266 | | | 27,031 | | | 442,105 | | | 5,356 | | | 1,314,828 | | | Special Mention | — | | | — | | | 4,810 | | | 4,890 | | | — | | | — | | | — | | | 9,700 | | | Substandard | — | | | — | | | — | | | 4,480 | | | — | | | 11,658 | | | 600 | | | 16,738 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 137,935 | | | 222,142 | | | 234,803 | | | 259,636 | | | 27,031 | | | 453,763 | | | 5,956 | | | 1,341,266 | | | | | | | | | | | | | | | | | | | Land and construction: | | | | | | | | | | | | | | | | | Pass | 32,691 | | | 45,250 | | | 31,599 | | | 9,899 | | | 212 | | | — | | | — | | | 119,651 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | 2,323 | | | — | | | 2,323 | | | Substandard | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard-Nonaccrual | — | | | — | | | — | | | 3,815 | | | 978 | | | 1,081 | | | — | | | 5,874 | | | Total | 32,691 | | | 45,250 | | | 31,599 | | | 13,714 | | | 1,190 | | | 3,404 | | | — | | | 127,848 | | | | | | | | | | | | | | | | | | | Home equity: | | | | | | | | | | | | | | | | | Pass | — | | | — | | | — | | | — | | | — | | | 2,378 | | | 122,207 | | | 124,585 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard | — | | | — | | | — | | | — | | | 750 | | | — | | | 2,551 | | | 3,301 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | 77 | | | — | | | 77 | | | Total | — | | | — | | | — | | | — | | | 750 | | | 2,455 | | | 124,758 | | | 127,963 | | | | | | | | | | | | | | | | | | | Multifamily: | | | | | | | | | | | | | | | | | Pass | 20,218 | | | 46,304 | | | 39,609 | | | 53,488 | | | 5,249 | | | 109,930 | | | 692 | | | 275,490 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 20,218 | | | 46,304 | | | 39,609 | | | 53,488 | | | 5,249 | | | 109,930 | | | 692 | | | 275,490 | | | | | | | | | | | | | | | | | | | Residential mortgage: | | | | | | | | | | | | | | | | | Pass | 3,757 | | | 1,659 | | | 180,979 | | | 251,167 | | | 1,006 | | | 32,384 | | | — | | | 470,952 | | | Special Mention | — | | | — | | | — | | | 607 | | | — | | | — | | | — | | | 607 | | | Substandard | — | | | — | | | — | | | — | | | — | | | 171 | | | — | | | 171 | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | 3,757 | | | 1,659 | | | 180,979 | | | 251,774 | | | 1,006 | | | 32,555 | | | — | | | 471,730 | | | | | | | | | | | | | | | | | | | Consumer and other: | | | | | | | | | | | | | | | | | Pass | 405 | | | 237 | | | 1,338 | | | 43 | | | — | | | 2,027 | | | 10,574 | | | 14,624 | | | Special Mention | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Substandard-Nonaccrual | — | | | — | | | — | | | — | | | — | | | — | | | 213 | | | 213 | | | Total | 405 | | | 237 | | | 1,338 | | | 43 | | | — | | | 2,027 | | | 10,787 | | | 14,837 | | | | | | | | | | | | | | | | | | | Total loans | $ | 388,564 | | | $ | 374,527 | | | $ | 587,493 | | | $ | 704,698 | | | $ | 114,422 | | | $ | 883,554 | | | $ | 438,862 | | | $ | 3,492,120 | | | | | | | | | | | | | | | | | | | Risk Grades: | | | | | | | | | | | | | | | | | Pass | $ | 386,637 | | | $ | 374,381 | | | $ | 581,765 | | | $ | 677,114 | | | $ | 109,094 | | | $ | 861,925 | | | $ | 434,875 | | | $ | 3,425,791 | | | Special Mention | 1,927 | | | — | | | 5,137 | | | 12,715 | | | 443 | | | 4,023 | | | 423 | | | 24,668 | | | Substandard | — | | | 146 | | | — | | | 10,845 | | | 3,907 | | | 16,234 | | | 3,351 | | | 34,483 | | | Substandard-Nonaccrual | — | | | — | | | 591 | | | 4,024 | | | 978 | | | 1,372 | | | 213 | | | 7,178 | | | Grand Total | $ | 388,564 | | | $ | 374,527 | | | $ | 587,493 | | | $ | 704,698 | | | $ | 114,422 | | | $ | 883,554 | | | $ | 438,862 | | | $ | 3,492,120 | |
The following table presents the gross charge-offs by class of loans and year of origination for the year ended December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Charge-offs by Originated Period for the Year Ended December 31, 2025 | | Revolving
Loans | | Total | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior Periods | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial | $ | 70 | | | $ | — | | | $ | 228 | | | $ | 605 | | | $ | — | | | $ | 138 | | | $ | 200 | | | $ | 1,241 | | | Real estate: | | | | | | | | | | | | | | | | | CRE - Owner Occupied | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | CRE - Non-Owner Occupied | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Land and construction | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Home equity | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Multifamily | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Residential mortgages | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Consumer and other | — | | | — | | | 192 | | | — | | | — | | | 5 | | | — | | | 197 | | | Total | $ | 70 | | | $ | — | | | $ | 420 | | | $ | 605 | | | $ | — | | | $ | 143 | | | $ | 200 | | | $ | 1,438 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Charge-offs by Originated Period for the Year Ended December 31, 2024 | | Revolving
Loans | | Total | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior Periods | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Commercial | $ | 57 | | | $ | 424 | | | $ | — | | | $ | — | | | $ | — | | | $ | 675 | | | $ | 149 | | | $ | 1,305 | | | Real estate: | | | | | | | | | | | | | | | | | CRE - Owner Occupied | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | CRE - Non-Owner Occupied | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Land and construction | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Home equity | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Multifamily | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Residential mortgages | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Consumer and other | — | | | — | | | — | | | — | | | — | | | — | | | 299 | | | 299 | | | Total | $ | 57 | | | $ | 424 | | | $ | — | | | $ | — | | | $ | — | | | $ | 675 | | | $ | 448 | | | $ | 1,604 | |
The amortized cost basis of collateral-dependent loans at December 31, 2025 was $313,000, of which $270,000 were secured by real estate and $43,000 were secured by business assets. The amortized cost basis of collateral-dependent loans, collateralized by business assets, totaled $701,000 at December 31, 2024. When management determines that foreclosures are probable, expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. For loans which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty, management has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of collateral, adjusted for selling costs as appropriate. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. Loan Modifications Occasionally, the Company modifies loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, payment delay, or interest reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. During the year ended December 31, 2025, there was one commercial loan modification with a term extension totaling $4,000, representing less than 0.01% of the total class of financing receivables, and included a weighted average term extension of 11 months. During the year ended December 31, 2024, there were three commercial loan modifications with a term extension totaling $12,000, representing less than 0.01% of the total class of financing receivables, and included a weighted average term extension of 12 months. The Company has not committed to lend any additional amounts to these borrowers. There were no payment defaults for loans modified for the years ended December 31, 2025 and December 31, 2024. No loans receiving such a modification was 30 days past due or greater at December 31, 2025 and December 31, 2024.
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