LOANS, ALLOWANCE FOR CREDIT LOSSES, AND CREDIT QUALITY

Summary of the activity in the ACL by loan type

A roll forward of the ACL-Loans is summarized as follows:


	Three Months Ended				Year Ended
	March 31, 2026		March 31, 2025		December 31, 2025
Beginning Balance	$	44,374	$	44,151	$	44,151
ACL on loans acquired		12,826		-		-
Provision for credit losses		-		400		1,200
Charge-offs		(156)		(836)		(1,145)
Recoveries		23		34		168
Net charge-offs		(133)		(802)		(977)
Ending Balance	$	57,067	$	43,749	$	44,374

A summary of the activity in the ACL - Loans by loan type for the three months ended March 31, 2026 is summarized as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -				Construction
	Commercial /		Owner		Non - Owner		Multi-		and		Residential
	Industrial		Occupied		Occupied		Family		Development		1-4 Family		Consumer		Other		Total
ACL - Loans - January 1, 2026	$	7,264	$	9,691	$	4,581	$	4,088	$	3,814	$	13,644	$	1,074	$	218	$	44,374
ACL - Loans on loans acquired		2,646		2,346		2,573		2,104		137		2,930		51		39		12,826
Charge-offs		—		—		—		—		—		—		(32)		(124)		(156)
Recoveries		1		—		—		—		—		2		—		20		23
Provision		81		589		(70)		(970)		427		(240)		51		132		—
ACL - Loans - March 31, 2026	$	9,992	$	12,626	$	7,084	$	5,222	$	4,378	$	16,336	$	1,144	$	285	$	57,067

A summary of the activity in the ACL – Loans by loan type for the three months ended March 31, 2025 is summarized as follows:


			Commercial		Commercial
			Real Estate -		Real Estate -				Construction
	Commercial /		Owner		Non - Owner		Multi-		and		Residential
	Industrial		Occupied		Occupied		Family		Development		1-4 Family		Consumer		Other		Total
ACL - Loans - January 1, 2025	$	6,737	$	9,334	$	5,213	$	3,739	$	5,223	$	12,684	$	1,084	$	137	$	44,151
Charge-offs		—		(802)		—		—		—		(1)		(21)		(12)		(836)
Recoveries		—		—		—		—		—		30		—		4		34
Provision		(455)		439		42		435		96		(172)		10		5		400
ACL - Loans - March 31, 2025	$	6,282	$	8,971	$	5,255	$	4,174	$	5,319	$	12,541	$	1,073	$	134	$	43,749

Summary of past due loans

The Company’s past due and non-accrual loans as of March 31, 2026 is summarized as follows:


			90 Days						Non-Accrual
	30-89 Days		or more						with no
	Past Due		Past Due		Non-				related
	Accruing		and Accruing		Accrual		Total		allowance
Commercial/industrial	$	952	$	43	$	2,589	$	3,584	$	236
Commercial real estate - owner occupied		1,245		4,324		4,566		10,135		—
Commercial real estate - non-owner occupied		555		351		—		906		—
Multi-family		—		—		12,943		12,943		—
Construction and development		292		1		—		293		—
Residential 1‑4 family		5,395		132		1,788		7,315		1,788
Consumer		207		6		147		360		147
Other		—		—		—		—		—
	$	8,646	$	4,857	$	22,033	$	35,536	$	2,171

The Company’s past due and non-accrual loans as of December 31, 2025 is summarized as follows:


			90 Days						Non-Accrual
	30-89 Days		or more						with no
	Past Due		Past Due		Non-				related
	Accruing		and Accruing		Accrual		Total		allowance
Commercial/industrial	$	894	$	—	$	1,754	$	2,648	$	137
Commercial real estate - owner occupied		337		2,791		2,330		5,458		—
Commercial real estate - non-owner occupied		974		—		—		974		—
Multi-family		—		—		—		—		—
Construction and development		719		1		—		720		—
Residential 1‑4 family		3,198		425		1,643		5,266		1,642
Consumer		277		25		79		381		79
Other		—		—		—		—		—
	$	6,399	$	3,242	$	5,806	$	15,447	$	1,858

Schedule of loans by risk ratings and year of origination

The following tables present total loans by risk ratings and year of origination. Loans acquired from other previously acquired institutions have been included in the table based upon the actual origination date.


	Amortized Cost Basis by Origination Year
As of March 31, 2026																Revolving
		2026		2025		2024		2023		2022		Prior		Revolving		to Term		Total
Commercial/industrial
Grades 1-4	$	47,512	$	112,334	$	53,717	$	43,065	$	50,286	$	95,684	$	192,699	$	-	$	595,297
Grade 5		5,051		37,923		8,666		7,135		3,060		12,086		75,075		-		148,996
Grade 6		-		5,006		6,387		149		40,270		150		3,069		-		55,031
Grade 7		-		225		553		1,631		1,337		10,150		8,501		-		22,397
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	52,563	$	155,488	$	69,323	$	51,980	$	94,953	$	118,070	$	279,344	$	-	$	821,721
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - owner occupied
Grades 1-4	$	32,581	$	109,178	$	121,211	$	68,282	$	112,243	$	397,792	$	22,585	$	-	$	863,872
Grade 5		1,327		42,721		46,203		20,294		20,632		56,298		812		-		188,287
Grade 6		-		1,938		1,326		604		4,014		14,386		-		-		22,268
Grade 7		-		6,271		3,976		3,863		13,822		30,253		759		-		58,944
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	33,908	$	160,108	$	172,716	$	93,043	$	150,711	$	498,729	$	24,156	$	-	$	1,133,371
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - non-owner occupied
Grades 1-4	$	10,300	$	61,912	$	39,767	$	50,004	$	80,651	$	297,202	$	14,589	$	-	$	554,425
Grade 5		1,820		7,895		19,108		2,616		6,514		30,070		179		-		68,202
Grade 6		-		-		199		6,471		989		21,082		363		-		29,104
Grade 7		-		-		-		401		-		8,333		-		-		8,734
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	12,120	$	69,807	$	59,074	$	59,492	$	88,154	$	356,687	$	15,131	$	-	$	660,465
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multi-family
Grades 1-4	$	9,355	$	25,143	$	4,332	$	40,390	$	72,020	$	261,883	$	3,687	$	-	$	416,810
Grade 5		-		-		763		21,854		751		3,777		-		-		27,145
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		12,943		-		-		-		-		-		12,943
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	9,355	$	25,143	$	18,038	$	62,244	$	72,771	$	265,660	$	3,687	$	-	$	456,898
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and development
Grades 1-4	$	6,626	$	95,945	$	21,390	$	39,605	$	26,961	$	15,919	$	2,846	$	-	$	209,292
Grade 5		914		17,197		18,163		11,948		-		133		130		-		48,485
Grade 6		-		1,024		-		-		-		-		-		-		1,024
Grade 7		-		-		-		-		-		709		-		-		709
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	7,540	$	114,166	$	39,553	$	51,553	$	26,961	$	16,761	$	2,976	$	-	$	259,510
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential 1‑4 family
Grades 1-4	$	11,986	$	98,656	$	82,333	$	103,917	$	194,038	$	432,499	$	152,233	$	-	$	1,075,662
Grade 5		-		5,329		2,041		1,902		1,954		1,781		1,997		-		15,004
Grade 6		-		-		-		177		1,592		-		1,278		-		3,047
Grade 7		-		107		113		169		1,274		4,393		1,382		-		7,438
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	11,986	$	104,092	$	84,487	$	106,165	$	198,858	$	438,673	$	156,890	$	-	$	1,101,151
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer
Grades 1-4	$	9,049	$	18,306	$	14,998	$	8,173	$	3,809	$	5,888	$	727	$	-	$	60,950
Grade 5		-		-		-		-		1		-		-		-		1
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		7		70		14		5		134		-		-		230
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	9,049	$	18,313	$	15,068	$	8,187	$	3,815	$	6,022	$	727	$	-	$	61,181
Current-period gross charge-offs	$	-	$	-	$	32	$	-	$	-	$	-	$	-	$	-	$	32
Other
Grades 1-4	$	1,562	$	1,010	$	2,481	$	541	$	364	$	9,747	$	566	$	-	$	16,271
Grade 5		611		3,749		-		-		-		407		721		-		5,488
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		119		17		-		461		-		597
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	2,173	$	4,759	$	2,481	$	660	$	381	$	10,154	$	1,748	$	-	$	22,356
Current-period gross charge-offs	$	-	$	2	$	-	$	11	$	-	$	-	$	111	$	-	$	124

Total Loans	$	138,694	$	651,876	$	460,740	$	433,324	$	636,604	$	1,710,756	$	484,659	$	-	$	4,516,653
Total current-period gross charge-offs	$	-	$	2	$	32	$	11	$	-	$	-	$	111	$	-	$	156


	Amortized Cost Basis by Origination Year
As of December 31, 2025																Revolving
		2025		2024		2023		2022		2021		Prior		Revolving		to Term		Total
Commercial/industrial
Grades 1-4	$	114,479	$	62,065	$	42,402	$	48,707	$	38,384	$	46,256	$	116,076	$	-	$	468,369
Grade 5		36,459		7,301		7,241		3,059		4,538		3,282		46,643		-		108,523
Grade 6		4,919		6,622		435		40,958		-		-		3,236		-		56,170
Grade 7		180		94		644		215		4,772		4,147		4,438		-		14,490
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	156,037	$	76,082	$	50,722	$	92,939	$	47,694	$	53,685	$	170,393	$	-	$	647,552
Current-period gross charge-offs	$	-	$	-	$	222	$	21	$	-	$	-	$	-	$	-	$	243
Commercial real estate - owner occupied
Grades 1-4	$	56,839	$	88,734	$	47,080	$	93,492	$	121,105	$	203,633	$	25,080	$	-	$	635,963
Grade 5		54,267		47,403		20,150		14,008		29,065		33,682		768		-		199,343
Grade 6		1,963		1,336		-		4,042		2,078		1,772		-		-		11,191
Grade 7		6,167		960		1,443		988		5,454		19,328		200		-		34,540
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	119,236	$	138,433	$	68,673	$	112,530	$	157,702	$	258,415	$	26,048	$	-	$	881,037
Current-period gross charge-offs	$	-	$	802	$	-	$	-	$	-	$	-	$	-	$	-	$	802
Commercial real estate - non-owner occupied
Grades 1-4	$	50,036	$	31,783	$	51,896	$	57,947	$	110,640	$	110,192	$	8,464	$	-	$	420,958
Grade 5		7,466		19,428		3,502		3,878		13,134		16,677		685		-		64,770
Grade 6		-		-		-		425		393		-		-		-		818
Grade 7		-		-		-		-		5,753		336		-		-		6,089
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	57,502	$	51,211	$	55,398	$	62,250	$	129,920	$	127,205	$	9,149	$	-	$	492,635
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate - multi-family
Grades 1-4	$	23,407	$	3,101	$	37,493	$	61,885	$	97,100	$	142,757	$	479	$	-	$	366,222
Grade 5		-		767		21,924		758		-		-		-		-		23,449
Grade 6		-		12,951		-		-		-		-		-		-		12,951
Grade 7		-		-		-		-		-		-		-		-		-
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	23,407	$	16,819	$	59,417	$	62,643	$	97,100	$	142,757	$	479	$	-	$	402,622
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and development
Grades 1-4	$	78,556	$	25,539	$	18,880	$	27,815	$	8,407	$	6,877	$	2,419	$	-	$	168,493
Grade 5		16,830		16,849		12,449		-		-		136		120		-		46,384
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		-		-		-		722		-		-		722
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	95,386	$	42,388	$	31,329	$	27,815	$	8,407	$	7,735	$	2,539	$	-	$	215,599
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential 1‑4 family
Grades 1-4	$	87,038	$	82,270	$	75,340	$	151,412	$	146,848	$	200,686	$	125,733	$	-	$	869,327
Grade 5		4,750		2,508		1,935		3,042		685		1,152		725		-		14,797
Grade 6		-		-		178		1,610		-		171		1,250		-		3,209
Grade 7		108		113		170		1,069		617		3,690		1,533		-		7,300
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	91,896	$	84,891	$	77,623	$	157,133	$	148,150	$	205,699	$	129,241	$	-	$	894,633
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	1	$	-	$	-	$	1
Consumer
Grades 1-4	$	22,082	$	14,613	$	8,133	$	4,344	$	1,935	$	2,930	$	439	$	-	$	54,476
Grade 5		-		-		-		-		-		-		-		-		-
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		9		80		16		3		4		30		-		-		142
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	22,091	$	14,693	$	8,149	$	4,347	$	1,939	$	2,960	$	439	$	-	$	54,618
Current-period gross charge-offs	$	-	$	8	$	21	$	13	$	-	$	-	$	-	$	-	$	42
Other
Grades 1-4	$	347	$	950	$	91	$	309	$	20	$	9,797	$	642	$	-	$	12,156
Grade 5		3,818		-		-		-		412		-		408		-		4,638
Grade 6		-		-		-		-		-		-		-		-		-
Grade 7		-		-		127		20		-		-		-		-		147
Grade 8		-		-		-		-		-		-		-		-		-
Total	$	4,165	$	950	$	218	$	329	$	432	$	9,797	$	1,050	$	-	$	16,941
Current-period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	57	$	-	$	57

Total Loans	$	569,720	$	425,467	$	351,529	$	519,986	$	591,344	$	808,253	$	339,338	$	-	$	3,605,637
Total current-period gross charge-offs	$	-	$	810	$	243	$	34	$	-	$	1	$	57	$	-	$	1,145