Loans and ACL (Tables)

3 Months Ended

Mar. 31, 2026

Receivables [Abstract]

Summary of Amortized Cost of Loans Held for Investment

The following table presents the amortized cost of loans held for investment as of the dates stated.


(Dollars in thousands)		March 31, 2026				December 31, 2025
Commercial and industrial		$	264,004			$	271,158
Real estate – construction, commercial			45,831				51,738
Real estate – construction, residential			33,397				31,772
Real estate – commercial			831,794				836,308
Real estate – residential			623,591				636,743
Real estate – farmland			4,451				4,580
Consumer			29,608				32,213
Gross loans held for investment			1,832,676				1,864,512
Deferred costs, net of loan fees			1,223				1,205
Total		$	1,833,899			$	1,865,717

Summary of Financing Receivable, Past Due

The following tables present the aging of the recorded investment of loans held for investment by loan category as of the dates stated.


		March 31, 2026
(Dollars in thousands)		Current Loans				30-59 Days Past Due				60-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total Loans
Commercial and industrial		$	255,605			$	927			$	647			$	1,408			$	5,417			$	264,004
Real estate – construction, commercial			45,366				401				22				—				42				45,831
Real estate – construction, residential			33,397				—				—				—				—				33,397
Real estate – commercial			825,857				47				—				—				5,890				831,794
Real estate – residential			601,193				12,472				2,810				—				7,116				623,591
Real estate – farmland			4,451				—				—				—				—				4,451
Consumer			26,760				1,391				303				117				1,037				29,608
Deferred costs, net of loan fees			1,223				—				—				—				—				1,223
Total		$	1,793,852			$	15,238			$	3,782			$	1,525			$	19,502			$	1,833,899


		December 31, 2025
(Dollars in thousands)		Current Loans				30-59 Days Past Due				60-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total Loans
Commercial and industrial		$	261,132			$	1,099			$	780			$	1,508			$	6,639			$	271,158
Real estate – construction, commercial			51,397				62				43				—				236				51,738
Real estate – construction, residential			31,772				—				—				—				—				31,772
Real estate – commercial			830,608				49				—				—				5,651				836,308
Real estate – residential			616,943				9,840				1,006				1,575				7,379				636,743
Real estate – farmland			4,580				—				—				—				—				4,580
Consumer			30,122				1,026				290				75				700				32,213
Deferred costs, net of loan fees			1,205				—				—				—				—				1,205
Total		$	1,827,759			$	12,076			$	2,119			$	3,158			$	20,605			$	1,865,717

Summary of Investment of PCI loans

The following tables present the recorded investment of nonaccrual loans held for investment with and without an ACL by loan category as of the dates stated.


		March 31, 2026
(Dollars in thousands)		Nonaccrual Loans with No ACL				Nonaccrual Loans with an ACL				Total Nonaccrual Loans
Commercial and industrial		$	1,736			$	3,681			$	5,417
Real estate – construction, commercial			—				42				42
Real estate – commercial			5,553				337				5,890
Real estate – residential			1,602				5,514				7,116
Consumer			—				1,037				1,037
Total		$	8,891			$	10,611			$	19,502


		December 31, 2025
(Dollars in thousands)		Nonaccrual Loans with No ACL				Nonaccrual Loans with an ACL				Total Nonaccrual Loans
Commercial and industrial		$	1,774			$	4,865			$	6,639
Real estate – construction, commercial			—				236				236
Real estate – commercial			5,634				17				5,651
Real estate – residential			1,602				5,777				7,379
Consumer loans			—				700				700
Total		$	9,010			$	11,595			$	20,605

Summary of Accrued Interest Receivable by Loan Type Reversed from Income

The following table presents accrued interest receivable by loan type reversed from interest income associated with loans held for investment that were placed on nonaccrual status for the periods stated.


		For the three months ended March 31,
(Dollars in thousands)		2026				2025
Commercial and industrial		$	9			$	70
Real estate – construction, commercial			1				—
Real estate – commercial			30				4
Real estate – residential			27				36
Consumer			17				7
Total		$	84			$	117

Summary of Recorded Investment of Loans Held for Investment by Internal Loan Grade by Year of Orgination

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of March 31, 2026. There were no loans classified as doubtful or loss (risk grades 8 and 9, respectively) as of the same date. Also presented are current period gross charge-offs by loan type for the three months ended March 31, 2026. The $1.6 million in current period gross charge-offs of revolving loans were attributable to

business and consumer credit cards originated through a partnership with a third-party company. The third-party provides limited credit loss protection to the Bank, and upon receipt, credits for losses are reported as recoveries. Since the inception of this partnership in early 2023, the Bank has not experienced a credit loss from this arrangement.


		Term Loans Recorded Investment Basis by Origination Year
(Dollars in thousands)		2026				2025				2024				2023				2022				Prior				Revolving Loans				Total
Commercial and industrial
Risk Grades 1 - 4		$	12,424			$	25,488			$	7,686			$	9,654			$	45,869			$	29,011			$	90,221			$	220,353
Risk Grades 5 - 6			550				749				915				433				12,594				5,502				1,457				22,200
Risk Grade 7			—				—				973				325				4,661				14,060				1,432				21,451
Total			12,974				26,237				9,574				10,412				63,124				48,573				93,110				264,004
Current period gross charge-offs			—				—				—				1				6				474				1,530				2,011

Real estate – construction, commercial
Risk Grades 1 - 4			579				18,876				3,481				1,950				3,953				5,524				62				34,425
Risk Grades 5 - 6			—				498				—				—				42				10,866				—				11,406
Total			579				19,374				3,481				1,950				3,995				16,390				62				45,831
Current period gross charge-offs			—				—				—				—				—				—				—				—

Real estate – construction, residential
Risk Grades 1 - 4			2,117				25,447				3,437				53				75				137				100				31,366
Risk Grades 5 - 6			—				413				—				—				1,306				—				—				1,719
Risk Grade 7			—				—				—				—				312				—				—				312
Total			2,117				25,860				3,437				53				1,693				137				100				33,397
Current period gross charge-offs			—				—				—				—				—				—				—				—

Real estate – commercial
Risk Grades 1 - 4			12,114				77,224				4,202				20,178				213,332				281,436				16,745				625,231
Risk Grades 5 - 6			—				826				—				5,001				77,162				80,998				3,778				167,765
Risk Grade 7			—				2,772				1,552				—				26,282				8,192				—				38,798
Total			12,114				80,822				5,754				25,179				316,776				370,626				20,523				831,794
Current period gross charge-offs			—				—				—				—				—				—				—				—

Real estate – residential
Risk Grades 1 - 4			2,810				4,350				2,671				62,656				200,706				275,943				50,836				599,972
Risk Grades 5 - 6			—				1,014				825				266				922				6,664				386				10,077
Risk Grade 7			—				560				—				1,092				4,236				7,077				577				13,542
Total			2,810				5,924				3,496				64,014				205,864				289,684				51,799				623,591
Current period gross charge-offs			—				—				—				—				—				—				—				—

Real estate – farmland
Risk Grades 1 - 4			—				—				141				—				960				2,931				146				4,178
Risk Grades 5 - 6			—				61				—				120				—				92				—				273
Total			—				61				141				120				960				3,023				146				4,451
Current period gross charge-offs			—				—				—				—				—				—				—				—

Consumer
Risk Grades 1 - 4			1,301				4,236				3,378				8,960				3,930				714				5,061				27,580
Risk Grades 5 - 6			—				37				198				231				298				31				—				795
Risk Grade 7			—				3				167				371				528				164				—				1,233
Total			1,301				4,276				3,743				9,562				4,756				909				5,061				29,608
Current period gross charge-offs			70				—				43				27				15				5				92				252

Total Loans
Risk Grades 1 - 4		$	31,345			$	155,621			$	24,996			$	103,451			$	468,825			$	595,696			$	163,171			$	1,543,105
Risk Grades 5 - 6			550				3,598				1,938				6,051				92,324				104,153				5,621				214,235
Risk Grade 7			—				3,335				2,692				1,788				36,019				29,493				2,009				75,336
Total		$	31,895			$	162,554			$	29,626			$	111,290			$	597,168			$	729,342			$	170,801			$	1,832,676
Total current period gross charge-offs		$	70			$	—			$	43			$	28			$	21			$	479			$	1,622			$	2,263

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of December 31, 2025. There were no loans classified as loss (risk grade 9) as of the same date.


		Term Loans Recorded Investment Basis by Origination Year
(Dollars in thousands)		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total
Commercial and industrial
Risk Grades 1 - 4		$	20,395			$	9,213			$	9,941			$	47,850			$	16,375			$	20,845			$	91,849			$	216,468
Risk Grades 5 - 6			762				408				1,257				20,110				2,817				3,944				2,465				31,763
Risk Grade 7			—				986				888				5,084				12,395				1,502				1,682				22,537
Risk Grade 8			—				—				—				—				—				390				—				390
Total			21,157				10,607				12,086				73,044				31,587				26,681				95,996				271,158

Real estate – construction, commercial
Risk Grades 1 - 4			22,147				5,186				2,099				4,001				3,139				3,417				62				40,051
Risk Grades 5 - 6			657				—				—				43				677				10,094				—				11,471
Risk Grade 7			—				—				—				—				5				211				—				216
Total			22,804				5,186				2,099				4,044				3,821				13,722				62				51,738

Real estate – construction, residential
Risk Grades 1 - 4			22,609				5,258				495				75				93				48				—				28,578
Risk Grades 5 - 6			338				—				—				2,544				—				—				—				2,882
Risk Grade 7			—				—				—				312				—				—				—				312
Total			22,947				5,258				495				2,931				93				48				—				31,772

Real estate – commercial
Risk Grades 1 - 4			75,900				4,500				29,768				209,573				101,178				190,435				17,057				628,411
Risk Grades 5 - 6			830				—				5,032				79,834				31,472				47,824				3,777				168,769
Risk Grade 7			—				1,555				—				29,380				2,519				5,674				—				39,128
Total			76,730				6,055				34,800				318,787				135,169				243,933				20,834				836,308

Real estate – residential
Risk Grades 1 - 4			4,382				2,705				65,443				204,911				104,375				181,362				51,559				614,737
Risk Grades 5 - 6			838				831				266				928				1,380				4,914				398				9,555
Risk Grade 7			561				—				1,099				3,676				1,207				5,354				554				12,451
Total			5,781				3,536				66,808				209,515				106,962				191,630				52,511				636,743

Real estate – farmland
Risk Grades 1 - 4			—				142				—				987				1,186				1,821				166				4,302
Risk Grades 5 - 6			62				—				123				—				93				—				—				278
Total			62				142				123				987				1,279				1,821				166				4,580

Consumer
Risk Grades 1 - 4			4,620				4,343				10,430				4,960				620				411				5,293				30,677
Risk Grades 5 - 6			—				138				190				326				48				18				—				720
Risk Grade 7			—				117				241				310				110				38				—				816
Total			4,620				4,598				10,861				5,596				778				467				5,293				32,213

Total Loans
Risk Grades 1 - 4		$	150,053			$	31,347			$	118,176			$	472,357			$	226,966			$	398,339			$	165,986			$	1,563,224
Risk Grades 5 - 6			3,487				1,377				6,868				103,785				36,487				66,794				6,640				225,438
Risk Grade 7			561				2,658				2,228				38,762				16,236				12,779				2,236				75,460
Risk Grade 8			—				—				—				—				—				390				—				390
Total		$	154,101			$	35,382			$	127,272			$	614,904			$	279,689			$	478,302			$	174,862			$	1,864,512

Summary of Change in the ACL by Loan Segment

The following tables present an analysis of the change in the ACL by loan segment for the periods stated.


		For the three months ended March 31, 2026
(Dollars in thousands)		Commercial and industrial				Real estate – construction, commercial				Real estate – construction, residential				Real estate – commercial				Real estate – residential				Real estate – farmland				Consumer				Total
ACL, beginning of period		$	4,337			$	678			$	264			$	5,959			$	7,655			$	14			$	537			$	19,444
(Recovery of) provision for credit losses - loans			(972	)			(23	)			(56	)			317				(54	)			(2	)			190				(600	)
Charge-offs			(2,011	)			—				—				—				—				—				(252	)			(2,263	)
Recoveries			2,492				—				—				—				1				—				110				2,603
Net recoveries (charge-offs)			481				—				—				—				1				—				(142	)			340
ACL, end of period		$	3,846			$	655			$	208			$	6,276			$	7,602			$	12			$	585			$	19,184

		For the three months ended March 31, 2025
(Dollars in thousands)		Commercial and industrial				Real estate – construction, commercial				Real estate – construction, residential				Real estate – commercial				Real estate – residential				Real estate – farmland				Consumer				Total
ACL, beginning of period		$	5,767			$	2,057			$	540			$	5,963			$	7,933			$	18			$	745			$	23,023
(Recovery of) provision for credit losses - loans			(189	)			(65	)			12				(240	)			253				—				229				—
Charge-offs			(2,123	)			—				—				(63	)			(16	)			—				(587	)			(2,789	)
Recoveries			2,078				—				—				338				1				—				475				2,892
Net recoveries (charge-offs)			(45	)			—				—				275				(15	)			—				(112	)			103
ACL, end of period		$	5,533			$	1,992			$	552			$	5,998			$	8,171			$	18			$	862			$	23,126

Effective January 1, 2026

Summary of Amortized Cost of Collateral-Dependent Loans, Individually Evaluated for Credit Losses

The following table presents the amortized cost of collateral-dependent loans that were individually evaluated for credit losses as of the dates stated.


(Dollars in thousands)		March 31, 2026				December 31, 2025
Commercial and industrial		$	16,890			$	21,134
Real estate – commercial			21,588				50,525
Real estate – residential			4,416				5,567
Total collateral-dependent loans		$	42,894			$	77,226

Summary of Amortized Cost of Loans Designated as TLMs

The following table presents the amortized cost of loans designated as TLMs, categorized by loan type and type of concession granted, for the periods stated.


		For the three months ended March 31,
		2026												2025
(Dollars in thousands)		Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category				Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category
Interest forgiven
Real estate – residential			—			$	—				0.00	%			1			$	141				0.02	%
Total interest forgiven			—			$	—								1			$	141

Term extension
Commercial and industrial			—			$	—				0.00	%			1			$	2,024				0.75	%
Total term extension			—			$	—								1			$	2,024

Payment deferral
Real estate – residential			2			$	1,503				0.24	%			—			$	—				0.00	%
Total payment deferral			2			$	1,503								—			$	—

Total			2			$	1,503								2			$	2,165

The following table presents the amortized cost of loans designated as TLMs that were modified in the preceding twelve months and had a payment default during the periods stated.


		For the three months ended March 31,
		2026												2025
(Dollars in thousands)		Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category				Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category
Interest forgiveness
Real estate – residential			—			$	—				0.00	%			1			$	141				0.02	%
Total interest forgiveness			—			$	—								1				141

Payment deferral
Real estate – residential			1				251				0.04	%			1				493				0.08	%
Consumer			—				—				0.00	%			1				9				0.03	%
Total payment deferral			1			$	251								2			$	502

Total			1			$	251								3			$	643

OREO

As of March 31, 2026 and December 31, 2025, OREO included a property with a carrying value of $1.3 million that served as collateral for a government guaranteed loan. The guaranteed portion of the loan (90%) was owned by the U.S. Small Business Administration ("SBA"), and the Company is obligated to remit to the SBA its share of the liquidation proceeds upon the sale of the property. Accordingly, the Company recorded a $1.2 million liability, reported in other liabilities on the Company's consolidated balance sheets as both March 31, 2026 and December 31, 2025, representing the SBA's contractual interest in the expected proceeds from the sale of the property.

A

Summary of financial effects of TLMs

The following tables present additional information including the financial effects of TLMs as of and for the periods stated.


		As of and for the three months ended March 31, 2026
(Dollars in thousands)		Weighted Average Term Extension (Months)				Weighted Average Payment Deferral				Weighted Average Interest Forgiven
Real estate – residential			—			$	50			$	—


		As of and for the three months ended March 31, 2025
(Dollars in thousands)		Weighted Average Term Extension (Months)				Weighted Average Payment Deferral				Weighted Average Interest Forgiven
Commercial and industrial			20			$	—			$	—
Real estate – residential			—				—				50

Summary of Aging Analysis of Amortized Cost of Loans Designated as TLMs

The following tables present an aging analysis of the amortized cost of loans designated as TLMs as of the dates stated.


		March 31, 2026
(Dollars in thousands)		Current Loans				30-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total
Commercial and industrial		$	1,035			$	—			$	—			$	2,132			$	3,167
Real estate – commercial			495				—				—				—				495
Real estate – residential			232				1,503				—				618				2,353
Consumer			—				—				—				5				5
Total modified loans		$	1,762			$	1,503			$	—			$	2,755			$	6,020


		December 31, 2025
(Dollars in thousands)		Current Loans				30-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total
Commercial and industrial		$	2,270			$	—			$	—			$	2,310			$	4,580
Real estate – commercial			501				—				—				—				501
Real estate – residential			236				—				—				627				863
Consumer			—				—				—				6				6
Total modified loans		$	3,007			$	—			$	—			$	2,943			$	5,950