| Financing Receivables [Text Block] |
Note 5: Allowance for Credit Losses on Loans and Nonperforming Assets Please refer to Note 1: Summary of Significant Accounting Policies for information on evaluation of collectively evaluated loans and individually evaluated loans and associated reserves, and policies regarding nonaccruals, past due status and charge-offs. A detailed analysis showing the allowance roll-forward by portfolio segment for the periods indicated follows:
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity in the ACLL for the Year Ended December 31, 2025 |
|
|
|
Real Estate
Construction |
|
|
Consumer
Real Estate |
|
|
Commercial
Real Estate |
|
|
Commercial
Non-Real
Estate |
|
|
Public
Sector and
IDA |
|
|
Consumer
Non-Real
Estate |
|
|
Unallocated |
|
|
Total |
|
Balance, December 31, 2024 |
|
$ |
348 |
|
|
$ |
3,926 |
|
|
$ |
4,299 |
|
|
$ |
655 |
|
|
$ |
336 |
|
|
$ |
648 |
|
|
$ |
50 |
|
|
$ |
10,262 |
|
Charge-offs |
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
|
|
(50 |
) |
|
|
- |
|
|
|
(529 |
) |
|
|
- |
|
|
|
(582 |
) |
Recoveries |
|
|
- |
|
|
|
- |
|
|
|
133 |
|
|
|
33 |
|
|
|
- |
|
|
|
109 |
|
|
|
- |
|
|
|
275 |
|
Provision for (recovery of) credit losses |
|
|
(13 |
) |
|
|
(119 |
) |
|
|
(648 |
) |
|
|
208 |
|
|
|
(30 |
) |
|
|
539 |
|
|
|
- |
|
|
|
(63 |
) |
Balance, December 31, 2025 |
|
$ |
335 |
|
|
$ |
3,804 |
|
|
$ |
3,784 |
|
|
$ |
846 |
|
|
$ |
306 |
|
|
$ |
767 |
|
|
$ |
50 |
|
|
$ |
9,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity in the ACLL for the Year Ended December 31, 2024 |
|
|
|
Real Estate
Construction |
|
|
Consumer
Real Estate |
|
|
Commercial
Real Estate |
|
|
Commercial
Non-Real
Estate |
|
|
Public
Sector and
IDA |
|
|
Consumer
Non-Real
Estate |
|
|
Unallocated |
|
|
Total |
|
Balance, December 31, 2023 |
|
$ |
408 |
|
|
$ |
3,162 |
|
|
$ |
3,576 |
|
|
$ |
682 |
|
|
$ |
333 |
|
|
$ |
583 |
|
|
$ |
350 |
|
|
$ |
9,094 |
|
Charge-offs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(166 |
) |
|
|
- |
|
|
|
(353 |
) |
|
|
- |
|
|
|
(519 |
) |
Recoveries |
|
|
- |
|
|
|
- |
|
|
|
53 |
|
|
|
79 |
|
|
|
- |
|
|
|
138 |
|
|
|
- |
|
|
|
270 |
|
Provision for (recovery of) credit losses |
|
|
(70 |
) |
|
|
667 |
|
|
|
615 |
|
|
|
56 |
|
|
|
3 |
|
|
|
271 |
|
|
|
(300 |
) |
|
|
1,242 |
|
Merger adjustment(1) |
|
|
10 |
|
|
|
97 |
|
|
|
55 |
|
|
|
4 |
|
|
|
- |
|
|
|
9 |
|
|
|
- |
|
|
|
175 |
|
Balance, December 31, 2024 |
|
$ |
348 |
|
|
$ |
3,926 |
|
|
$ |
4,299 |
|
|
$ |
655 |
|
|
$ |
336 |
|
|
$ |
648 |
|
|
$ |
50 |
|
|
$ |
10,262 |
|
(1) Adjustment for PCD acquired loans. A detailed analysis showing the allowance and loan portfolio by segment and evaluation method as of the dates indicated follows:
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACLL by Segment and Evaluation Method |
|
December 31, 2025 |
|
Real Estate Construction |
|
|
Consumer Real Estate |
|
|
Commercial Real Estate |
|
|
Commercial Non-Real Estate |
|
|
Public Sector and IDA |
|
|
Consumer Non-Real Estate |
|
|
Unallocated |
|
|
Total |
|
Individually evaluated |
|
$ |
– |
|
|
$ |
26 |
|
|
$ |
80 |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
106 |
|
Collectively evaluated |
|
|
335 |
|
|
|
3,778 |
|
|
|
3,704 |
|
|
|
846 |
|
|
|
306 |
|
|
|
767 |
|
|
|
50 |
|
|
|
9,786 |
|
Total |
|
$ |
335 |
|
|
$ |
3,804 |
|
|
$ |
3,784 |
|
|
$ |
846 |
|
|
$ |
306 |
|
|
$ |
767 |
|
|
$ |
50 |
|
|
$ |
9,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Segment and Evaluation Method |
|
December 31, 2025 |
|
Real Estate Construction |
|
|
Consumer Real Estate |
|
|
Commercial Real Estate |
|
|
Commercial Non-Real Estate |
|
|
Public Sector and IDA |
|
|
Consumer Non-Real Estate |
|
|
Total |
|
Individually evaluated |
|
$ |
– |
|
|
$ |
465 |
|
|
$ |
8,337 |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
8,802 |
|
Collectively evaluated |
|
|
40,694 |
|
|
|
328,188 |
|
|
|
459,446 |
|
|
|
52,018 |
|
|
|
63,677 |
|
|
|
47,101 |
|
|
|
991,124 |
|
Total |
|
$ |
40,694 |
|
|
$ |
328,653 |
|
|
$ |
467,783 |
|
|
$ |
52,018 |
|
|
$ |
63,677 |
|
|
$ |
47,101 |
|
|
$ |
999,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACLL by Segment and Evaluation Method |
|
December 31, 2024 |
|
Real Estate
Construction |
|
|
Consumer
Real Estate |
|
|
Commercial
Real Estate |
|
|
Commercial
Non-Real
Estate |
|
|
Public
Sector and
IDA |
|
|
Consumer
Non-Real
Estate |
|
|
Unallocated |
|
|
Total |
|
Individually evaluated |
|
$ |
- |
|
|
$ |
31 |
|
|
$ |
49 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
80 |
|
Collectively evaluated |
|
|
348 |
|
|
|
3,895 |
|
|
|
4,250 |
|
|
|
655 |
|
|
|
336 |
|
|
|
648 |
|
|
|
50 |
|
|
|
10,182 |
|
Total |
|
$ |
348 |
|
|
$ |
3,926 |
|
|
$ |
4,299 |
|
|
$ |
655 |
|
|
$ |
336 |
|
|
$ |
648 |
|
|
$ |
50 |
|
|
$ |
10,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Segment and Evaluation Method |
|
December 31, 2024 |
|
Real Estate
Construction |
|
|
Consumer
Real Estate |
|
|
Commercial
Real Estate |
|
|
Commercial
Non-Real
Estate |
|
|
Public
Sector and
IDA |
|
|
Consumer
Non-Real
Estate |
|
|
Total |
|
Individually evaluated |
|
$ |
- |
|
|
$ |
497 |
|
|
$ |
10,024 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
10,521 |
|
Collectively evaluated |
|
|
50,798 |
|
|
|
307,358 |
|
|
|
468,054 |
|
|
|
51,844 |
|
|
|
57,171 |
|
|
|
42,867 |
|
|
|
978,092 |
|
Total |
|
$ |
50,798 |
|
|
$ |
307,855 |
|
|
$ |
478,078 |
|
|
$ |
51,844 |
|
|
$ |
57,171 |
|
|
$ |
42,867 |
|
|
$ |
988,613 |
|
A summary of ratios for the allowance for credit losses, as of the dates indicated, follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
Ratio of ACLL to the end of period loans, net of deferred fees and costs |
|
|
0.99 |
% |
|
|
1.04 |
% |
Ratio of net charge-offs to average loans, net of deferred fees and costs |
|
|
0.03 |
% |
|
|
0.03 |
% |
The following table presents nonaccrual loans, by class, as of the dates indicated:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
|
With No
Allowance |
|
|
With an
Allowance |
|
|
Total |
|
|
With No
Allowance |
|
|
With an
Allowance |
|
|
Total |
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate owner-occupied |
|
$ |
- |
|
|
$ |
188 |
|
|
$ |
188 |
|
|
$ |
2,013 |
|
|
$ |
209 |
|
|
$ |
2,222 |
|
Total |
|
$ |
- |
|
|
$ |
188 |
|
|
$ |
188 |
|
|
$ |
2,013 |
|
|
$ |
209 |
|
|
$ |
2,222 |
|
The following tables present the aging of past due loans, by loan pool, as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
Accruing
Current
Loans |
|
|
Accruing
Loans
30 – 89
Days
Past Due |
|
|
Accruing
Loans
90 or
More
Days Past
Due |
|
|
Nonaccrual
Loans |
|
|
Total
Loans |
|
|
Accruing
and
Nonaccrual
90 or
More
Days Past
Due |
|
Real Estate Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, 1-4 family residential |
|
$ |
11,282 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
11,282 |
|
|
$ |
- |
|
Construction, other |
|
|
29,101 |
|
|
|
311 |
|
|
|
- |
|
|
|
- |
|
|
|
29,412 |
|
|
|
- |
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity lines |
|
|
27,494 |
|
|
|
- |
|
|
|
50 |
|
|
|
- |
|
|
|
27,544 |
|
|
|
50 |
|
Residential closed-end first liens |
|
|
196,857 |
|
|
|
1,447 |
|
|
|
- |
|
|
|
- |
|
|
|
198,304 |
|
|
|
- |
|
Residential closed-end junior liens |
|
|
11,154 |
|
|
|
6 |
|
|
|
- |
|
|
|
- |
|
|
|
11,160 |
|
|
|
- |
|
Investor-owned residential real estate |
|
|
91,471 |
|
|
|
174 |
|
|
|
- |
|
|
|
- |
|
|
|
91,645 |
|
|
|
- |
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily residential real estate |
|
|
148,644 |
|
|
|
189 |
|
|
|
- |
|
|
|
- |
|
|
|
148,833 |
|
|
|
- |
|
Commercial real estate owner-occupied |
|
|
130,856 |
|
|
|
- |
|
|
|
429 |
|
|
|
188 |
|
|
|
131,473 |
|
|
|
617 |
|
Commercial real estate, other |
|
|
186,939 |
|
|
|
538 |
|
|
|
- |
|
|
|
- |
|
|
|
187,477 |
|
|
|
- |
|
Commercial Non-Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
51,435 |
|
|
|
248 |
|
|
|
335 |
|
|
|
- |
|
|
|
52,018 |
|
|
|
335 |
|
Public Sector and IDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
States and political subdivisions |
|
|
63,677 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
63,677 |
|
|
|
- |
|
Consumer Non-Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
4,727 |
|
|
|
7 |
|
|
|
2 |
|
|
|
- |
|
|
|
4,736 |
|
|
|
2 |
|
Automobile |
|
|
12,707 |
|
|
|
245 |
|
|
|
14 |
|
|
|
- |
|
|
|
12,966 |
|
|
|
14 |
|
Other consumer loans |
|
|
28,991 |
|
|
|
357 |
|
|
|
51 |
|
|
|
- |
|
|
|
29,399 |
|
|
|
51 |
|
Total |
|
$ |
995,335 |
|
|
$ |
3,522 |
|
|
$ |
881 |
|
|
$ |
188 |
|
|
$ |
999,926 |
|
|
$ |
1,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
Accruing
Current
Loans |
|
|
Accruing
Loans
30 – 89
Days
Past Due |
|
|
Accruing
Loans
90 or
More
Days Past
Due |
|
|
Nonaccrual
Loans |
|
|
Total
Loans |
|
|
Accruing
and
Nonaccrual
90 or More
Days Past
Due |
|
Real Estate Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction, 1-4 family residential |
|
$ |
16,162 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
16,162 |
|
|
$ |
- |
|
Construction, other |
|
|
34,636 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
34,636 |
|
|
|
- |
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity lines |
|
|
22,551 |
|
|
|
67 |
|
|
|
- |
|
|
|
- |
|
|
|
22,618 |
|
|
|
- |
|
Residential closed-end first liens |
|
|
170,110 |
|
|
|
949 |
|
|
|
323 |
|
|
|
- |
|
|
|
171,382 |
|
|
|
323 |
|
Residential closed-end junior liens |
|
|
8,565 |
|
|
|
9 |
|
|
|
- |
|
|
|
- |
|
|
|
8,574 |
|
|
|
- |
|
Investor-owned residential real estate |
|
|
104,756 |
|
|
|
347 |
|
|
|
178 |
|
|
|
- |
|
|
|
105,281 |
|
|
|
178 |
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily residential real estate |
|
|
143,444 |
|
|
|
186 |
|
|
|
- |
|
|
|
- |
|
|
|
143,630 |
|
|
|
- |
|
Commercial real estate owner-occupied |
|
|
138,284 |
|
|
|
147 |
|
|
|
- |
|
|
|
2,222 |
|
|
|
140,653 |
|
|
|
209 |
|
Commercial real estate, other |
|
|
193,249 |
|
|
|
546 |
|
|
|
- |
|
|
|
- |
|
|
|
193,795 |
|
|
|
- |
|
Commercial Non-Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
51,547 |
|
|
|
253 |
|
|
|
44 |
|
|
|
- |
|
|
|
51,844 |
|
|
|
44 |
|
Public Sector and IDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
States and political subdivisions |
|
|
57,171 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
57,171 |
|
|
|
- |
|
Consumer Non-Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
4,696 |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
4,698 |
|
|
|
- |
|
Automobile |
|
|
12,802 |
|
|
|
193 |
|
|
|
- |
|
|
|
- |
|
|
|
12,995 |
|
|
|
- |
|
Other consumer loans |
|
|
24,921 |
|
|
|
250 |
|
|
|
3 |
|
|
|
- |
|
|
|
25,174 |
|
|
|
3 |
|
Total |
|
$ |
982,894 |
|
|
$ |
2,949 |
|
|
$ |
548 |
|
|
$ |
2,222 |
|
|
$ |
988,613 |
|
|
$ |
757 |
|
Collateral Dependent Loans Loans are collateral dependent when repayment is expected substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans are individually evaluated. The Company measures the ACLL on collateral dependent loans based upon the fair value of the collateral. Fair value of the collateral is adjusted for liquidation costs/discounts. If the fair value of the collateral falls below the amortized cost of the loan, the shortfall is recognized in the ACLL. If the fair value of the collateral exceeds the amortized cost, no ACL is required. As of December 31, 2025, two of the Company’s individually evaluated loans were considered collateral dependent, and both are secured by real estate. The following table provides details on collateral dependent loans as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
|
Balance |
|
|
Related
Allowance |
|
|
Balance |
|
|
Related
Allowance |
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate, owner occupied |
|
$ |
6,248 |
|
|
$ |
- |
|
|
$ |
8,387 |
|
|
$ |
- |
|
Commercial real estate, other |
|
|
673 |
|
|
|
- |
|
|
|
872 |
|
|
|
- |
|
Total Loans |
|
$ |
6,921 |
|
|
$ |
- |
|
|
$ |
9,259 |
|
|
$ |
- |
|
Credit Quality The Company categorizes loans by risk based on relevant information about the ability of borrowers to service their debt, including: collateral and financial information, historical payment experience, credit documentation and current economic trends, among other factors. At origination, each loan is assigned a risk grade. Ongoing analysis of the loan portfolio adjusts risk grades on an individual loan basis to reflect updated information. General descriptions of risk grades are as follows: •Pass: loans with acceptable credit quality. •Special mention: loans with potential weaknesses due to challenging economic or financial conditions. •Classified: loans with well-defined weaknesses that heighten the risk of default. The following tables presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of the date indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
|
|
Revolving
Loans
Converted |
|
|
|
December 31, 2025 |
|
Prior |
|
2021 |
|
2022 |
|
2023 |
|
2024 |
|
2025 |
|
Revolving |
|
to Term |
|
Total |
|
Construction, residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
265 |
|
$ |
1,135 |
|
$ |
5,780 |
|
$ |
3,565 |
|
$ |
537 |
|
$ |
11,282 |
|
Construction, other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
3,702 |
|
$ |
752 |
|
$ |
1,107 |
|
$ |
16,721 |
|
$ |
1,045 |
|
$ |
2,293 |
|
$ |
3,742 |
|
$ |
50 |
|
$ |
29,412 |
|
Equity lines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
27,494 |
|
$ |
- |
|
$ |
27,494 |
|
Classified |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
50 |
|
|
- |
|
|
50 |
|
Total |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
27,544 |
|
$ |
- |
|
$ |
27,544 |
|
Residential closed-end first liens |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
54,388 |
|
$ |
32,152 |
|
$ |
33,508 |
|
$ |
27,107 |
|
$ |
21,529 |
|
$ |
25,624 |
|
$ |
39 |
|
$ |
3,673 |
|
$ |
198,020 |
|
Special Mention |
|
|
47 |
|
|
- |
|
|
130 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
177 |
|
Classified |
|
|
107 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
107 |
|
Total |
|
$ |
54,542 |
|
$ |
32,152 |
|
$ |
33,638 |
|
$ |
27,107 |
|
$ |
21,529 |
|
$ |
25,624 |
|
$ |
39 |
|
$ |
3,673 |
|
$ |
198,304 |
|
Residential closed-end junior liens |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
1,208 |
|
$ |
241 |
|
$ |
1,757 |
|
$ |
1,269 |
|
$ |
3,106 |
|
$ |
3,547 |
|
$ |
32 |
|
$ |
- |
|
$ |
11,160 |
|
Investor-owned residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
44,806 |
|
$ |
15,403 |
|
$ |
10,847 |
|
$ |
2,956 |
|
$ |
3,760 |
|
$ |
11,172 |
|
$ |
2,236 |
|
$ |
- |
|
$ |
91,180 |
|
Classified |
|
|
465 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
465 |
|
Total |
|
$ |
45,271 |
|
$ |
15,403 |
|
$ |
10,847 |
|
$ |
2,956 |
|
$ |
3,760 |
|
$ |
11,172 |
|
$ |
2,236 |
|
$ |
- |
|
$ |
91,645 |
|
Multifamily residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
40,234 |
|
$ |
38,409 |
|
$ |
26,165 |
|
$ |
4,126 |
|
$ |
13,043 |
|
$ |
26,180 |
|
$ |
137 |
|
$ |
- |
|
$ |
148,294 |
|
Classified |
|
|
189 |
|
|
- |
|
|
350 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
539 |
|
Total |
|
$ |
40,423 |
|
$ |
38,409 |
|
$ |
26,515 |
|
$ |
4,126 |
|
$ |
13,043 |
|
$ |
26,180 |
|
$ |
137 |
|
$ |
- |
|
$ |
148,833 |
|
Commercial real estate, owner-occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
69,884 |
|
$ |
6,700 |
|
$ |
24,662 |
|
$ |
9,084 |
|
$ |
5,913 |
|
$ |
4,810 |
|
$ |
2,669 |
|
$ |
- |
|
$ |
123,722 |
|
Special mention |
|
|
6,248 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6,248 |
|
Classified |
|
|
1,014 |
|
|
102 |
|
|
- |
|
|
- |
|
|
125 |
|
|
- |
|
|
262 |
|
|
- |
|
|
1,503 |
|
Total |
|
$ |
77,146 |
|
$ |
6,802 |
|
$ |
24,662 |
|
$ |
9,084 |
|
$ |
6,038 |
|
$ |
4,810 |
|
$ |
2,931 |
|
$ |
- |
|
$ |
131,473 |
|
Commercial real estate, other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
96,143 |
|
$ |
34,432 |
|
$ |
30,660 |
|
$ |
14,173 |
|
$ |
6,047 |
|
$ |
3,039 |
|
$ |
1,613 |
|
$ |
- |
|
$ |
186,107 |
|
Classified |
|
|
673 |
|
|
- |
|
|
538 |
|
|
159 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,370 |
|
Total |
|
$ |
96,816 |
|
$ |
34,432 |
|
$ |
31,198 |
|
$ |
14,332 |
|
$ |
6,047 |
|
$ |
3,039 |
|
$ |
1,613 |
|
$ |
- |
|
$ |
187,477 |
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
6,927 |
|
$ |
9,845 |
|
$ |
2,502 |
|
$ |
3,318 |
|
$ |
9,388 |
|
$ |
7,662 |
|
$ |
11,842 |
|
$ |
170 |
|
$ |
51,654 |
|
Special Mention |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
20 |
|
|
- |
|
|
20 |
|
Classified |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
313 |
|
|
- |
|
|
31 |
|
|
- |
|
|
344 |
|
Total |
|
$ |
6,927 |
|
$ |
9,845 |
|
$ |
2,502 |
|
$ |
3,318 |
|
$ |
9,701 |
|
$ |
7,662 |
|
$ |
11,893 |
|
$ |
170 |
|
$ |
52,018 |
|
Public sector and IDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
18,540 |
|
$ |
23,207 |
|
$ |
5,495 |
|
$ |
6,390 |
|
$ |
45 |
|
$ |
- |
|
$ |
10,000 |
|
$ |
- |
|
$ |
63,677 |
|
Credit cards |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
4,736 |
|
$ |
- |
|
$ |
4,736 |
|
Automobile |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
49 |
|
$ |
212 |
|
$ |
700 |
|
$ |
2,257 |
|
$ |
3,390 |
|
$ |
6,343 |
|
$ |
- |
|
$ |
- |
|
$ |
12,951 |
|
Classified |
|
|
- |
|
|
1 |
|
|
- |
|
|
- |
|
|
- |
|
|
14 |
|
|
- |
|
|
- |
|
|
15 |
|
Total |
|
$ |
49 |
|
$ |
213 |
|
$ |
700 |
|
$ |
2,257 |
|
$ |
3,390 |
|
$ |
6,357 |
|
$ |
- |
|
$ |
- |
|
$ |
12,966 |
|
Other consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
371 |
|
$ |
413 |
|
$ |
933 |
|
$ |
2,235 |
|
$ |
6,033 |
|
$ |
17,762 |
|
$ |
1,589 |
|
$ |
- |
|
$ |
29,336 |
|
Special Mention |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5 |
|
|
- |
|
|
- |
|
|
- |
|
|
5 |
|
Classified |
|
|
- |
|
|
- |
|
|
3 |
|
|
47 |
|
|
4 |
|
|
2 |
|
|
2 |
|
|
- |
|
|
58 |
|
Total |
|
$ |
371 |
|
$ |
413 |
|
$ |
936 |
|
$ |
2,282 |
|
$ |
6,042 |
|
$ |
17,764 |
|
$ |
1,591 |
|
$ |
- |
|
$ |
29,399 |
|
Total Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
336,252 |
|
$ |
161,766 |
|
$ |
138,336 |
|
$ |
89,901 |
|
$ |
74,434 |
|
$ |
114,212 |
|
$ |
69,694 |
|
$ |
4,430 |
|
$ |
989,025 |
|
Special Mention |
|
|
6,295 |
|
|
- |
|
|
130 |
|
|
- |
|
|
5 |
|
|
- |
|
|
20 |
|
|
- |
|
|
6,450 |
|
Classified |
|
|
2,448 |
|
|
103 |
|
|
891 |
|
|
206 |
|
|
442 |
|
|
16 |
|
|
345 |
|
|
- |
|
|
4,451 |
|
Total |
|
$ |
344,995 |
|
$ |
161,869 |
|
$ |
139,357 |
|
$ |
90,107 |
|
$ |
74,881 |
|
$ |
114,228 |
|
$ |
70,059 |
|
$ |
4,430 |
|
$ |
999,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
|
|
Revolving
Loans
Converted |
|
|
|
December 31, 2024 |
|
Prior |
|
2020 |
|
2021 |
|
2022 |
|
2023 |
|
2024 |
|
Revolving |
|
to Term |
|
Total |
|
Construction, residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
337 |
|
$ |
2,312 |
|
$ |
3,328 |
|
$ |
10,185 |
|
$ |
- |
|
$ |
16,162 |
|
Construction, other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
2,938 |
|
$ |
1,138 |
|
$ |
805 |
|
$ |
10,795 |
|
$ |
8,669 |
|
$ |
6,194 |
|
$ |
4,097 |
|
$ |
- |
|
$ |
34,636 |
|
Equity lines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
363 |
|
$ |
249 |
|
$ |
387 |
|
$ |
470 |
|
$ |
816 |
|
$ |
402 |
|
$ |
19,894 |
|
$ |
12 |
|
$ |
22,593 |
|
Classified |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
25 |
|
|
- |
|
|
25 |
|
Total |
|
$ |
363 |
|
$ |
249 |
|
$ |
387 |
|
$ |
470 |
|
$ |
816 |
|
$ |
402 |
|
$ |
19,919 |
|
$ |
12 |
|
$ |
22,618 |
|
Residential closed-end first liens |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
42,211 |
|
$ |
18,111 |
|
$ |
33,630 |
|
$ |
35,557 |
|
$ |
21,593 |
|
$ |
18,991 |
|
$ |
- |
|
$ |
303 |
|
$ |
170,396 |
|
Special mention |
|
|
367 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
367 |
|
Classified |
|
|
441 |
|
|
- |
|
|
- |
|
|
178 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
619 |
|
Total |
|
$ |
43,019 |
|
$ |
18,111 |
|
$ |
33,630 |
|
$ |
35,735 |
|
$ |
21,593 |
|
$ |
18,991 |
|
$ |
- |
|
$ |
303 |
|
$ |
171,382 |
|
Residential closed-end junior liens |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
1,596 |
|
$ |
- |
|
$ |
277 |
|
$ |
2,048 |
|
$ |
1,597 |
|
$ |
3,004 |
|
$ |
31 |
|
$ |
21 |
|
$ |
8,574 |
|
Investor-owned residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
28,919 |
|
$ |
22,946 |
|
$ |
19,280 |
|
$ |
16,242 |
|
$ |
8,175 |
|
$ |
3,266 |
|
$ |
1,907 |
|
$ |
3,668 |
|
$ |
104,403 |
|
Special mention |
|
|
- |
|
|
- |
|
|
- |
|
|
138 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
138 |
|
Classified |
|
|
740 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
740 |
|
Total |
|
$ |
29,659 |
|
$ |
22,946 |
|
$ |
19,280 |
|
$ |
16,380 |
|
$ |
8,175 |
|
$ |
3,266 |
|
$ |
1,907 |
|
$ |
3,668 |
|
$ |
105,281 |
|
Multifamily residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
39,665 |
|
$ |
2,055 |
|
$ |
39,879 |
|
$ |
40,198 |
|
$ |
8,470 |
|
$ |
13,205 |
|
$ |
158 |
|
$ |
- |
|
$ |
143,630 |
|
Commercial real estate, owner-occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
52,916 |
|
$ |
24,539 |
|
$ |
7,432 |
|
$ |
28,753 |
|
$ |
10,351 |
|
$ |
3,810 |
|
$ |
3,422 |
|
$ |
83 |
|
$ |
131,306 |
|
Special mention |
|
|
6,375 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6,375 |
|
Classified |
|
|
2,222 |
|
|
738 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
12 |
|
|
- |
|
|
2,972 |
|
Total |
|
$ |
61,513 |
|
$ |
25,277 |
|
$ |
7,432 |
|
$ |
28,753 |
|
$ |
10,351 |
|
$ |
3,810 |
|
$ |
3,434 |
|
$ |
83 |
|
$ |
140,653 |
|
Commercial real estate, other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
90,358 |
|
$ |
17,919 |
|
$ |
36,777 |
|
$ |
23,775 |
|
$ |
16,990 |
|
$ |
5,583 |
|
$ |
1,703 |
|
$ |
- |
|
$ |
193,105 |
|
Classified |
|
|
690 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
690 |
|
Total |
|
$ |
91,048 |
|
$ |
17,919 |
|
$ |
36,777 |
|
$ |
23,775 |
|
$ |
16,990 |
|
$ |
5,583 |
|
$ |
1,703 |
|
$ |
- |
|
$ |
193,795 |
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
6,437 |
|
$ |
2,070 |
|
$ |
11,849 |
|
$ |
5,528 |
|
$ |
5,903 |
|
$ |
8,407 |
|
$ |
11,644 |
|
$ |
- |
|
$ |
51,838 |
|
Classified |
|
|
- |
|
|
- |
|
|
- |
|
|
6 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6 |
|
Total |
|
$ |
6,437 |
|
$ |
2,070 |
|
$ |
11,849 |
|
$ |
5,534 |
|
$ |
5,903 |
|
$ |
8,407 |
|
$ |
11,644 |
|
$ |
- |
|
$ |
51,844 |
|
Public sector and IDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
19,309 |
|
$ |
218 |
|
$ |
25,232 |
|
$ |
5,922 |
|
$ |
6,490 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
57,171 |
|
Credit cards |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
4,698 |
|
$ |
- |
|
$ |
4,698 |
|
Automobile |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
36 |
|
$ |
243 |
|
$ |
727 |
|
$ |
1,640 |
|
$ |
4,474 |
|
$ |
5,832 |
|
$ |
- |
|
$ |
- |
|
$ |
12,952 |
|
Special mention |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
4 |
|
|
- |
|
|
- |
|
|
- |
|
|
4 |
|
Classified |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
28 |
|
|
11 |
|
|
- |
|
|
- |
|
|
39 |
|
Total |
|
$ |
36 |
|
$ |
243 |
|
$ |
727 |
|
$ |
1,640 |
|
$ |
4,506 |
|
$ |
5,843 |
|
$ |
- |
|
$ |
- |
|
$ |
12,995 |
|
Other Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
184 |
|
$ |
401 |
|
$ |
874 |
|
$ |
2,274 |
|
$ |
4,804 |
|
$ |
15,846 |
|
$ |
760 |
|
$ |
- |
|
$ |
25,143 |
|
Special mention |
|
|
- |
|
|
- |
|
|
1 |
|
|
- |
|
|
- |
|
|
9 |
|
|
- |
|
|
- |
|
|
10 |
|
Classified |
|
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
14 |
|
|
5 |
|
|
- |
|
|
- |
|
|
21 |
|
Total |
|
$ |
184 |
|
$ |
401 |
|
$ |
875 |
|
$ |
2,276 |
|
$ |
4,818 |
|
$ |
15,860 |
|
$ |
760 |
|
$ |
- |
|
$ |
25,174 |
|
Total Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
284,932 |
|
$ |
89,889 |
|
$ |
177,149 |
|
$ |
173,539 |
|
$ |
100,644 |
|
$ |
87,868 |
|
$ |
58,499 |
|
$ |
4,087 |
|
$ |
976,607 |
|
Special mention |
|
|
6,742 |
|
|
- |
|
|
1 |
|
|
138 |
|
|
4 |
|
|
9 |
|
|
- |
|
|
- |
|
|
6,894 |
|
Classified |
|
|
4,093 |
|
|
738 |
|
|
- |
|
|
186 |
|
|
42 |
|
|
16 |
|
|
37 |
|
|
- |
|
|
5,112 |
|
Total |
|
$ |
295,767 |
|
$ |
90,627 |
|
$ |
177,150 |
|
$ |
173,863 |
|
$ |
100,690 |
|
$ |
87,893 |
|
$ |
58,536 |
|
$ |
4,087 |
|
$ |
988,613 |
|
The following tables presents gross charge offs during the year indicated, by year of origination and loan class.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Charge Offs by Origination Year for the Year Ended December 31, 2025 |
|
Revolving
Loans
Converted |
|
|
|
|
|
Prior |
|
2021 |
|
2022 |
|
2023 |
|
2024 |
|
2025 |
|
Revolving |
|
to Term |
|
Total |
|
Residential closed-end first liens |
|
$ |
3 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
3 |
|
Commercial and industrial |
|
|
- |
|
|
- |
|
|
- |
|
|
50 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
50 |
|
Credit cards |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
54 |
|
|
- |
|
|
54 |
|
Automobile |
|
|
- |
|
|
4 |
|
|
22 |
|
|
59 |
|
|
23 |
|
|
- |
|
|
- |
|
|
- |
|
|
108 |
|
Other consumer |
|
|
- |
|
|
1 |
|
|
36 |
|
|
40 |
|
|
78 |
|
|
212 |
|
|
- |
|
|
- |
|
|
367 |
|
Total Gross Charge-Offs |
|
$ |
3 |
|
$ |
5 |
|
$ |
58 |
|
$ |
149 |
|
$ |
101 |
|
$ |
212 |
|
$ |
54 |
|
$ |
- |
|
$ |
582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Charge Offs by Origination Year for the Year Ended December 31, 2024 |
|
Revolving
Loans
Converted |
|
|
|
|
|
Prior |
|
2020 |
|
2021 |
|
2022 |
|
2023 |
|
2024 |
|
Revolving |
|
to Term |
|
Total |
|
Commercial and industrial |
|
$ |
125 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
22 |
|
$ |
19 |
|
$ |
- |
|
$ |
166 |
|
Credit cards |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
53 |
|
|
- |
|
|
53 |
|
Automobile |
|
|
- |
|
|
- |
|
|
6 |
|
|
14 |
|
|
16 |
|
|
11 |
|
|
- |
|
|
- |
|
|
47 |
|
Other Consumer |
|
|
- |
|
|
4 |
|
|
15 |
|
|
19 |
|
|
94 |
|
|
121 |
|
|
- |
|
|
- |
|
|
253 |
|
Total YTD gross charge-offs |
|
$ |
125 |
|
$ |
4 |
|
$ |
21 |
|
$ |
33 |
|
$ |
110 |
|
$ |
154 |
|
$ |
72 |
|
$ |
- |
|
$ |
519 |
|
Loan Modifications to Borrowers Experiencing Financial Difficulty The Company modifies loans for a variety of reasons. At the date of modification, the Company assesses whether the borrower is experiencing financial difficulty. If the borrower is experiencing financial difficulty, the loan’s risk rating is evaluated and adjusted to special mention or classified, as determined appropriate. If the loan exceeds $400, if it is placed in nonaccrual, or if foreclosure is probable, the loan is individually evaluated for the ACLL. The Company did not modify any loans to borrowers experiencing financial difficulty during the year ended December 31, 2025. The Company modified one loan to a borrower experiencing financial difficulty during the year ended December 31, 2024. The following table presents information on the modification.
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
Amortized
Cost Basis |
|
|
% of
Class |
|
|
Type of
Modification |
|
Financial Effect |
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
Commercial real estate owner-occupied |
|
$ |
6,396 |
|
|
|
4.48 |
% |
|
Interest only payments |
|
3 months of interest only payments, following which the balance will be re-amortizd to contractual maturity |
The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty. As of December 31, 2025, the loan was in current status, risk graded special mention and individually evaluated using the fair value of collateral method, resulting in no specific reserve. The Company analyzed its modified loan portfolio for loans that defaulted during the 12 month period ended December 31, 2025, and that were modified within 12 months prior. The Company designates three circumstances that indicate default: one or more payments that occur more than 90 days past the due date, charge-off, or foreclosure after the date of modification. There were no loans to borrowers experiencing financial difficulty that defaulted during the year ended December 31, 2025 or December 31, 2024 and were modified in the twelve months prior. ACL on Unfunded Commitments The following table presents information on the ACL for unfunded commitments for the years ended December 31, 2025 and December 31, 2024:
|
|
|
|
|
Allowance for Credit Losses on Unfunded Commitments |
|
Balance, December 31, 2024 |
|
$ |
251 |
|
Provision of credit losses |
|
|
47 |
|
Balance, December 31, 2025 |
|
$ |
298 |
|
|
|
|
|
Balance, December 31, 2023 |
|
$ |
259 |
|
Recovery of credit losses |
|
|
(15 |
) |
FCB acquisition |
|
|
7 |
|
Balance, December 31, 2024 |
|
$ |
251 |
|
|
|
|
|
|