v3.26.1
Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Amortized Cost and Unpaid Principal Balance of Loans by Loan Segment
The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's CECL methodology to assess credit risk, for the periods indicated:
March 31, 2026December 31, 2025
(In Thousands)Amortized CostUnpaid PrincipalDifferenceAmortized CostUnpaid PrincipalDifference
Commercial & industrial loans$462,998 $465,172 ($2,174)$450,826 $453,153 ($2,327)
Commercial real estate:
Owner occupied properties435,148 436,979 (1,831)433,157 435,050 (1,893)
Non-owner occupied and multifamily properties765,781 770,325 (4,544)763,180 767,617 (4,437)
Residential real estate:
1-4 family residential properties secured by first liens264,662 264,555 107 243,185 243,167 18 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens71,207 70,464 743 67,116 66,470 646 
1-4 family residential construction loans38,679 38,900 (221)39,059 39,311 (252)
Other construction, land development and raw land loans176,715 178,029 (1,314)173,589 175,261 (1,672)
Obligations of states and political subdivisions in the US32,312 32,311 1 32,434 32,433 1 
Agricultural production, including commercial fishing50,133 50,371 (238)47,445 47,682 (237)
Consumer loans9,205 9,097 108 9,763 9,659 104 
Other loans51,862 52,058 (196)35,745 35,860 (115)
Total2,358,702 2,368,261 (9,559)2,295,499 2,305,663 (10,164)
Allowance for credit losses(24,812)(23,737)
   Net loans$2,333,890 $2,368,261 ($9,559)$2,271,762 $2,305,663 ($10,164)
Allowance for Credit Losses
The table below presents activity in the ACL related to loans held for investment for the periods indicated.
Three Months Ended March 31,Beginning BalanceCredit Loss Expense (Benefit)Charge-offsRecoveriesEnding Balance
(In Thousands)
2026    
Commercial & industrial loans$6,707 ($123)($250)$37 $6,371 
Commercial real estate:
Owner occupied properties2,207 291 — — 2,498 
Non-owner occupied and multifamily properties4,440 812 — — 5,252 
Residential real estate:
1-4 family residential properties secured by first liens5,712 508 — — 6,220 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens1,041 39 — 3 1,083 
1-4 family residential construction loans324 (137)— — 187 
Other construction, land development and raw land loans2,839 (224)— — 2,615 
Obligations of states and political subdivisions in the US143 (3)— — 140 
Agricultural production, including commercial fishing202 9 — 1 212 
Consumer loans114 (10)(2)— 102 
Other loans8 124 — — 132 
Total$23,737 $1,286 ($252)$41 $24,812 
2025
Commercial & industrial loans$5,800 $1,550 ($37)$74 $7,387 
Commercial real estate:
Owner occupied properties2,944 (502)— — 2,442 
Non-owner occupied and multifamily properties3,967 (11)— — 3,956 
Residential real estate:
1-4 family residential properties secured by first liens4,364 (308)— — 4,056 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens775 (13)— 7 769 
1-4 family residential construction loans230 (11)— — 219 
Other construction, land development and raw land loans3,589 (1,883)— — 1,706 
Obligations of states and political subdivisions in the US106 17 — — 123 
Agricultural production, including commercial fishing169 16 — 2 187 
Consumer loans71 12 (13)1 71 
Other loans5 1 — — 6 
Total$22,020 ($1,132)($50)$84 $20,922 
Schedule of Financing Receivables For Gross Charge-Offs By Grade And Year Of Loan Origination
The following table shows gross charge-offs by year of loan origination for the periods indicated:
Three Months Ended March 31,
(In Thousands)20262025202420232022PriorTotal
2026
Commercial & industrial loans$— $— $250 $— $— $— $250 
Consumer loans— — — 2 — — 2 
Total$— $— $250 $2 $— $— $252 
The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.

March 31, 202620262025202420232022PriorTotal
(In Thousands)
Commercial & industrial loans
Pass$33,053 $114,312 $68,658 $60,931 $72,704 $68,154 $417,812 
Criticized— 1,018 3,368 6,528 16,876 17,396 45,186 
Total commercial & industrial loans$33,053 $115,330 $72,026 $67,459 $89,580 $85,550 $462,998 
Commercial real estate:
Owner occupied properties
Pass$24,693 $36,665 $73,810 $43,573 $63,385 $173,442 $415,568 
Criticized— 6,002 — — 3,651 9,927 19,580 
Total commercial real estate owner occupied properties$24,693 $42,667 $73,810 $43,573 $67,036 $183,369 $435,148 
Non-owner occupied and multifamily properties
Pass$7,570 $122,470 $143,470 $67,331 $136,715 $278,449 $756,005 
Criticized— — — — 1,143 8,633 9,776 
Total commercial real estate non-owner occupied and multifamily properties$7,570 $122,470 $143,470 $67,331 $137,858 $287,082 $765,781 
Residential real estate:
1-4 family residential properties secured by first liens
Pass$26,958 $67,982 $52,748 $72,543 $32,516 $11,248 $263,995 
Criticized— — — 499 — 168 667 
Total residential real estate 1-4 family residential properties secured by first liens$26,958 $67,982 $52,748 $73,042 $32,516 $11,416 $264,662 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass$5,517 $21,491 $18,573 $9,846 $5,936 $9,331 $70,694 
Criticized— — — 430 — 83 513 
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$5,517 $21,491 $18,573 $10,276 $5,936 $9,414 $71,207 
1-4 family residential construction loans
Pass$3,283 $20,715 $5,253 $65 $— $9,363 $38,679 
Criticized— — — — — — — 
Total residential real estate 1-4 family residential construction loans$3,283 $20,715 $5,253 $65 $— $9,363 $38,679 
Other construction, land development and raw land loans
Pass$2,671 $63,796 $33,710 $39,143 $13,383 $16,281 $168,984 
Criticized— — — — 6,277 1,454 7,731 
Total other construction, land development and raw land loans$2,671 $63,796 $33,710 $39,143 $19,660 $17,735 $176,715 
Obligations of states and political subdivisions in the US
Pass$— $— $4,603 $— $27,709 $— $32,312 
Criticized— — — — — — — 
Total obligations of states and political subdivisions in the US$— $— $4,603 $— $27,709 $— $32,312 
Agricultural production, including commercial fishing
Pass$2,770 $3,364 $8,757 $7,931 $8,872 $18,439 $50,133 
Criticized— — — — — — — 
Total agricultural production, including commercial fishing$2,770 $3,364 $8,757 $7,931 $8,872 $18,439 $50,133 
Consumer loans
Pass$893 $3,691 $1,752 $1,494 $434 $939 $9,203 
Criticized— — — — 2 — 2 
Total consumer loans$893 $3,691 $1,752 $1,494 $436 $939 $9,205 
Other loans
Pass$14,085 $— $— $331 $35,683 $1,763 $51,862 
Criticized— — — — — — — 
Total other loans$14,085 $— $— $331 $35,683 $1,763 $51,862 
Total loans
Pass$121,493 $454,486 $411,334 $303,188 $397,337 $587,409 $2,275,247 
Criticized— 7,020 3,368 7,457 27,949 37,661 83,455 
Total loans$121,493 $461,506 $414,702 $310,645 $425,286 $625,070 $2,358,702 
Total pass loans$121,493 $454,486 $411,334 $303,188 $397,337 $587,409 $2,275,247 
Government guarantees (16,430)(18,033)(33,420)(4,818)(4,649)(28,447)(105,797)
Total pass loans, net of government guarantees$105,063 $436,453 $377,914 $298,370 $392,688 $558,962 $2,169,450 
Total criticized loans$— $7,020 $3,368 $7,457 $27,949 $37,661 $83,455 
Government guarantees— — — (1,928)(16,734)(22,470)(41,132)
Total criticized loans, net government guarantees$— $7,020 $3,368 $5,529 $11,215 $15,191 $42,323 

December 31, 202520252024202320222021PriorTotal
(In Thousands)
Commercial & industrial loans
Pass$140,717 $73,544 $61,463 $64,841 $24,046 $40,558 $405,169 
Criticized— 3,540 5,905 16,590 12,845 6,777 45,657 
Total commercial & industrial loans$140,717 $77,084 $67,368 $81,431 $36,891 $47,335 $450,826 
Commercial real estate:
Owner occupied properties
Pass$34,589 $70,158 $61,563 $67,334 $52,207 $126,589 $412,440 
Criticized6,002 — — 3,674 — 11,041 20,717 
Total commercial real estate owner occupied properties$40,591 $70,158 $61,563 $71,008 $52,207 $137,630 $433,157 
Non-owner occupied and multifamily properties
Pass$136,992 $119,749 $68,208 $138,103 $67,826 $221,420 $752,298 
Criticized— — — 1,143 — 9,739 10,882 
Total commercial real estate non-owner occupied and multifamily properties$136,992 $119,749 $68,208 $139,246 $67,826 $231,159 $763,180 
Residential real estate:
1-4 family residential properties secured by first liens
Pass$67,166 $53,573 $75,846 $33,276 $2,953 $9,684 $242,498 
Criticized— — 514 — — 173 687 
Total residential real estate 1-4 family residential properties secured by first liens$67,166 $53,573 $76,360 $33,276 $2,953 $9,857 $243,185 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass$21,690 $18,943 $10,356 $5,820 $2,924 $6,866 $66,599 
Criticized— — 430 — — 87 517 
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$21,690 $18,943 $10,786 $5,820 $2,924 $6,953 $67,116 
1-4 family residential construction loans
Pass$23,151 $5,946 $— $— $— $9,962 $39,059 
Criticized— — — — — — — 
Total residential real estate 1-4 family residential construction loans$23,151 $5,946 $— $— $— $9,962 $39,059 
Other construction, land development and raw land loans
Pass$53,248 $45,743 $38,772 $13,462 $9,175 $5,455 $165,855 
Criticized— — — 6,277 26 1,431 7,734 
Total other construction, land development and raw land loans$53,248 $45,743 $38,772 $19,739 $9,201 $6,886 $173,589 
Obligations of states and political subdivisions in the US
Pass$— $4,569 $— $27,864 $— $1 $32,434 
Criticized— — — — — — — 
Total obligations of states and political subdivisions in the US$— $4,569 $— $27,864 $— $1 $32,434 
Agricultural production, including commercial fishing
Pass$3,142 $8,770 $7,950 $8,924 $14,908 $3,631 $47,325 
Criticized— — — — 120 — 120 
Total agricultural production, including commercial fishing$3,142 $8,770 $7,950 $8,924 $15,028 $3,631 $47,445 
Consumer loans
Pass$4,757 $1,848 $1,646 $507 $32 $969 $9,759 
Criticized— — 2 2 — — 4 
Total consumer loans$4,757 $1,848 $1,648 $509 $32 $969 $9,763 
Other loans
Pass$— $— $639 $33,315 $588 $1,203 $35,745 
Criticized— — — — — — — 
Total other loans$— $— $639 $33,315 $588 $1,203 $35,745 
Total loans
Pass$485,452 $402,843 $326,443 $393,446 $174,659 $426,338 $2,209,181 
Criticized6,002 3,540 6,851 27,686 12,991 29,248 86,318 
Total loans$491,454 $406,383 $333,294 $421,132 $187,650 $455,586 $2,295,499 
Total pass loans$485,452 $402,843 $326,443 $393,446 $174,659 $426,338 $2,209,181 
Government guarantees (17,804)(29,791)(19,923)(4,766)(10,173)(17,368)(99,825)
Total pass loans, net of government guarantees$467,648 $373,052 $306,520 $388,680 $164,486 $408,970 $2,109,356 
Total criticized loans$6,002 $3,540 $6,851 $27,686 $12,991 $29,248 $86,318 
Government guarantees— — (1,641)(16,831)(11,567)(12,300)(42,339)
Total criticized loans, net government guarantees$6,002 $3,540 $5,210 $10,855 $1,424 $16,948 $43,979 
Aging of Contractually Past Due Loans The following tables present an aging of contractually past due loans as of the periods presented:
(In Thousands)30-59 Days
Past Due		60-89 Days
Past Due		Greater Than
90 Days Past Due		Total Past
Due		CurrentTotalGreater Than 90 Days Past Due Still Accruing
March 31, 2026      
Commercial & industrial loans$— $728 $1,020 $1,748 $461,250 $462,998 $— 
Commercial real estate:
Owner occupied properties
481 — — 481 434,667 435,148 — 
Non-owner occupied and multifamily properties
— — 1,143 1,143 764,638 765,781 — 
Residential real estate:
1-4 family residential properties secured by first liens
1,645 — 188 1,833 262,829 264,662 — 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
70 — 372 442 70,765 71,207 — 
1-4 family residential construction loans
— — — 38,679 38,679 — 
Other construction, land development and raw land loans— — 1,654 1,654 175,061 176,715 — 
Obligations of states and political subdivisions in the US— — — — 32,312 32,312 — 
Agricultural production, including commercial fishing— — — — 50,133 50,133 — 
Consumer loans3 — — 3 9,202 9,205 — 
Other loans— — — — 51,862 51,862 — 
Total$2,199 $728 $4,377 $7,304 $2,351,398 $2,358,702 $— 
December 31, 2025
Commercial & industrial loans$190 $— $1,500 $1,690 $449,136 $450,826 $— 
Commercial real estate:
Owner occupied properties
— — — — 433,157 433,157 — 
Non-owner occupied and multifamily properties
— — — — 763,180 763,180 — 
Residential real estate:
1-4 family residential properties secured by first liens
1,505 — 514 2,019 241,166 243,185 — 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
194 — 372 566 66,550 67,116 — 
1-4 family residential construction loans
— — — — 39,059 39,059 — 
Other construction, land development and raw land loans— 277 1,377 1,654 171,935 173,589 — 
Obligations of states and political subdivisions in the US— — — — 32,434 32,434 — 
Agricultural production, including commercial fishing— — — — 47,445 47,445 — 
Consumer loans— 2 — 2 9,761 9,763 — 
Other loans— — — — 35,745 35,745 — 
Total$1,889 $279 $3,763 $5,931 $2,289,568 $2,295,499 $— 
Loans on Nonaccrual Status The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.
March 31, 2026December 31, 2025
(In  Thousands)NonaccrualNonaccrual With No ACLACL on NonaccrualNonaccrualNonaccrual With No ACLACL on Nonaccrual
Commercial & industrial loans$6,079 $2,022 $1,841 $4,251 $1,641 $1,248 
Commercial real estate:
Owner occupied properties4,994 2,652 69 5,134 2,725 86 
Non-owner occupied and multifamily properties1,143 — 379 — — — 
Residential real estate:
1-4 family residential properties secured by first liens499 188 47 514 — 60 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens412 372 1 415 372 1 
Other construction, land development and raw land loans1,654 1,654 — 1,654 1,654 — 
Total nonaccrual loans14,781 6,888 2,337 11,968 6,392 1,395 
Government guarantees on nonaccrual loans(567)(567)— — — — 
Net nonaccrual loans$14,214 $6,321 $2,337 $11,968 $6,392 $1,395 
Financing Receivable, Modified
The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:
Three Months Ended March 31, 2026
Payment ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Owner occupied properties$— $— $— — %
Total$— $— $— — %
Three Months Ended March 31, 2025
Payment ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Owner occupied properties$— $3,252 $3,252 0.76 %
Total$— $3,252 $3,252 0.15 %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:

Three Months Ended March 31, 2026
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Owner occupied properties$— — %0

Three Months Ended March 31, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Owner occupied properties$— — %33



The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty as of the dates indicated. These are loans that have been modified within twelve months of the dates indicated:

(In Thousands)March 31, 2026December 31, 2025
Commercial & industrial loans$219 $142 
Commercial real estate:
Owner occupied properties3,171 3,193 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens372 372 
1-4 family residential construction loans— — 
Other construction, land development and raw land loans1,376 1,376 
Total$5,138 $5,083 
The following table presents the amortized cost basis of loans that had a payment default during the periods indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:

Three Months Ended March 31, 2026
Term modificationTerm and payment modification
(In Thousands)
Commercial real estate:
Owner occupied properties$— $733 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens372 — 
Other construction, land development and raw land loans1 — 
Total$1,748 $733 

Three Months Ended March 31, 2025
Term modification
(In Thousands)
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$— 
Total$— 
The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:
March 31, 2026
Greater Than 89 Days Past DueTotal Past Due
Current
Total
(In Thousands)
Commercial & industrial loans$— $— $219 $219 
Commercial real estate:
Owner occupied properties— — 3,171 3,171 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens372 372 — 372 
Other construction, land development and raw land loans1,376 1,376 — 1,376 
Total$1,748 $1,748 $3,390 $5,138 
March 31, 2025
60-89 Days Past DueGreater Than 89 Days Past DueTotal Past DueCurrentTotal
(In Thousands)
Commercial & industrial loans$— $— $— $4,318 $4,318 
Commercial real estate:
Owner occupied properties— 217 217 3,251 3,468 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens— 460 460 — 460 
Other construction, land development and raw land loans— 1,490 1,490 — 1,490 
Total$— $2,167 $2,167 $7,569 $9,736