v3.26.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 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:
June 30, 2026December 31, 2025
(In Thousands)Amortized CostUnpaid PrincipalDifferenceAmortized CostUnpaid PrincipalDifference
Commercial & industrial loans$471,215 $473,342 ($2,127)$450,826 $453,153 ($2,327)
Commercial real estate:
Owner occupied properties443,054 444,880 (1,826)433,157 435,050 (1,893)
Non-owner occupied and multifamily properties769,928 774,340 (4,412)763,180 767,617 (4,437)
Residential real estate:
1-4 family residential properties secured by first liens260,301 260,371 (70)243,185 243,167 18 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens79,995 79,125 870 67,116 66,470 646 
1-4 family residential construction loans28,839 29,053 (214)39,059 39,311 (252)
Other construction, land development and raw land loans175,656 177,280 (1,624)173,589 175,261 (1,672)
Obligations of states and political subdivisions in the US39,525 39,692 (167)32,434 32,433 1 
Agricultural production, including commercial fishing55,833 56,118 (285)47,445 47,682 (237)
Consumer loans9,877 9,758 119 9,763 9,659 104 
Other loans52,105 52,281 (176)35,745 35,860 (115)
Total2,386,328 2,396,240 (9,912)2,295,499 2,305,663 (10,164)
Allowance for credit losses(25,461)(23,737)
   Net loans$2,360,867 $2,396,240 ($9,912)$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 June 30,Beginning BalanceCredit Loss Expense (Benefit)Charge-offsRecoveriesEnding Balance
(In Thousands)
2026
Commercial & industrial loans$6,371 ($106)($64)$27 $6,228 
Commercial real estate:
Owner occupied properties2,498 125 — — 2,623 
Non-owner occupied and multifamily properties5,252 (66)(78)— 5,108 
Residential real estate:
1-4 family residential properties secured by first liens6,220 277 — — 6,497 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens1,083 222 — 3 1,308 
1-4 family residential construction loans187 (28)— — 159 
Other construction, land development and raw land loans2,615 233 — — 2,848 
Obligations of states and political subdivisions in the US140 44 — — 184 
Agricultural production, including commercial fishing212 27 — 1 240 
Consumer loans102 20 — — 122 
Other loans132 12 — — 144 
Total$24,812 $760 ($142)$31 $25,461 
2025
Commercial & industrial loans$7,387 $268 ($152)$5 $7,508 
Commercial real estate:
Owner occupied properties2,442 (171)— — 2,271 
Non-owner occupied and multifamily properties3,956 227 — — 4,183 
Residential real estate:
1-4 family residential properties secured by first liens4,056 637 — — 4,693 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens769 152 — 7 928 
1-4 family residential construction loans219 51 — — 270 
Other construction, land development and raw land loans1,706 602 — — 2,308 
Obligations of states and political subdivisions in the US123 12 — — 135 
Agricultural production, including commercial fishing187 10 — — 197 
Consumer loans71 11 (3)3 82 
Other loans6 4 — — 10 
Total$20,922 $1,803 ($155)$15 $22,585 
Six Months Ended June 30,Beginning BalanceCredit Loss Expense (Benefit)Charge-offsRecoveriesEnding Balance
(In Thousands)
2026
Commercial & industrial loans$6,707 ($229)($314)$64 $6,228 
Commercial real estate:
Owner occupied properties2,207 416 — — 2,623 
Non-owner occupied and multifamily properties4,440 746 (78)— 5,108 
Residential real estate:
1-4 family residential properties secured by first liens5,712 785 — — 6,497 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens1,041 261 — 6 1,308 
1-4 family residential construction loans324 (165)— — 159 
Other construction, land development and raw land loans2,839 9 — — 2,848 
Obligations of states and political subdivisions in the US143 41 — — 184 
Agricultural production, including commercial fishing202 37 — 1 240 
Consumer loans114 10 (2)— 122 
Other loans8 136 — — 144 
Total$23,737 $2,047 ($394)$71 $25,461 
2025
Commercial & industrial loans$5,800 $1,818 ($189)$79 $7,508 
Commercial real estate:
Owner occupied properties2,944 (673)— — 2,271 
Non-owner occupied and multifamily properties3,967 216 — — 4,183 
Residential real estate:
1-4 family residential properties secured by first liens4,364 329 — — 4,693 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens775 139 — 14 928 
1-4 family residential construction loans230 40 — — 270 
Other construction, land development and raw land loans3,589 (1,281)— — 2,308 
Obligations of states and political subdivisions in the US106 29 — — 135 
Agricultural production, including commercial fishing169 25 — 3 197 
Consumer loans71 24 (16)3 82 
Other loans5 5 — — 10 
Total$22,020 $671 ($205)$99 $22,585 
Schedule of Financing Receivables For Gross Charge-Offs By Grade And Year Of Loan Origination
The following table shows gross charge-offs by year of loan origination for the periods indicated:
Six Months Ended June 30,
(In Thousands)20262025202420232022PriorTotal
2026
Commercial & industrial loans$— $64 $250 $— $— $— $314 
Consumer loans— — — 2 — — 2 
Total$— $64 $250 $2 $78 $— $394 
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.

June 30, 202620262025202420232022PriorTotal
(In Thousands)
Commercial & industrial loans
Pass$71,412 $96,278 $64,537 $48,738 $82,868 $76,387 $440,220 
Criticized2,940 740 3,143 5,931 476 17,765 30,995 
Total commercial & industrial loans$74,352 $97,018 $67,680 $54,669 $83,344 $94,152 $471,215 
Commercial real estate:
Owner occupied properties
Pass$35,717 $36,324 $73,217 $43,269 $62,448 $172,799 $423,774 
Criticized— 6,002 — — 3,601 9,677 19,280 
Total commercial real estate owner occupied properties$35,717 $42,326 $73,217 $43,269 $66,049 $182,476 $443,054 
Non-owner occupied and multifamily properties
Pass$16,772 $122,905 $153,469 $67,754 $136,033 $264,311 $761,244 
Criticized— — — — 1,057 7,627 8,684 
Total commercial real estate non-owner occupied and multifamily properties$16,772 $122,905 $153,469 $67,754 $137,090 $271,938 $769,928 
Residential real estate:
1-4 family residential properties secured by first liens
Pass$57,466 $42,639 $47,485 $70,124 $31,711 $10,188 $259,613 
Criticized— 218 — 307 — 163 688 
Total residential real estate 1-4 family residential properties secured by first liens$57,466 $42,857 $47,485 $70,431 $31,711 $10,351 $260,301 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass$14,683 $22,599 $17,911 $9,438 $5,837 $9,018 $79,486 
Criticized— — — 429 — 80 509 
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$14,683 $22,599 $17,911 $9,867 $5,837 $9,098 $79,995 
1-4 family residential construction loans
Pass$10,111 $14,511 $1,770 $65 $— $1,863 $28,320 
Criticized— 519 — — — — 519 
Total residential real estate 1-4 family residential construction loans$10,111 $15,030 $1,770 $65 $— $1,863 $28,839 
Other construction, land development and raw land loans
Pass$25,341 $61,280 $24,366 $33,650 $13,327 $9,963 $167,927 
Criticized— — — — 6,277 1,452 7,729 
Total other construction, land development and raw land loans$25,341 $61,280 $24,366 $33,650 $19,604 $11,415 $175,656 
Obligations of states and political subdivisions in the US
Pass$— $11,986 $— $— $27,539 $— $39,525 
Criticized— — — — — — — 
Total obligations of states and political subdivisions in the US$— $11,986 $— $— $27,539 $— $39,525 
Agricultural production, including commercial fishing
Pass$10,226 $3,207 $7,403 $8,553 $7,974 $17,883 $55,246 
Criticized— — 587 — — — 587 
Total agricultural production, including commercial fishing$10,226 $3,207 $7,990 $8,553 $7,974 $17,883 $55,833 
Consumer loans
Pass$2,656 $3,278 $1,324 $1,290 $409 $915 $9,872 
Criticized— 4 — — 1 — 5 
Total consumer loans$2,656 $3,282 $1,324 $1,290 $410 $915 $9,877 
Other loans
Pass$13,476 $— $— $328 $36,569 $1,732 $52,105 
Criticized— — — — — — — 
Total other loans$13,476 $— $— $328 $36,569 $1,732 $52,105 
Total loans
Pass$257,860 $415,007 $391,482 $283,209 $404,715 $565,059 $2,317,332 
Criticized2,940 7,483 3,730 6,667 11,412 36,764 68,996 
Total loans$260,800 $422,490 $395,212 $289,876 $416,127 $601,823 $2,386,328 
Total pass loans$257,860 $415,007 $391,482 $283,209 $404,715 $565,059 $2,317,332 
Government guarantees (22,728)(10,207)(34,346)(5,154)(4,293)(27,971)(104,699)
Total pass loans, net of government guarantees$235,132 $404,800 $357,136 $278,055 $400,422 $537,088 $2,212,633 
Total criticized loans$2,940 $7,483 $3,730 $6,667 $11,412 $36,764 $68,996 
Government guarantees— (64)— (1,970)(2,374)(21,982)(26,390)
Total criticized loans, net government guarantees$2,940 $7,419 $3,730 $4,697 $9,038 $14,782 $42,606 

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
June 30, 2026
Commercial & industrial loans$19 $— $451 $470 $470,745 $471,215 $— 
Commercial real estate:
Owner occupied properties
— — — — 443,054 443,054 — 
Non-owner occupied and multifamily properties
— — 544 544 769,384 769,928 — 
Residential real estate:
1-4 family residential properties secured by first liens
— 874 307 1,181 259,120 260,301 — 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
274 75 372 721 79,274 79,995 — 
1-4 family residential construction loans
— — — 28,839 28,839 — 
Other construction, land development and raw land loans— — 1,654 1,654 174,002 175,656 — 
Obligations of states and political subdivisions in the US— — — — 39,525 39,525 — 
Agricultural production, including commercial fishing— — — — 55,833 55,833 — 
Consumer loans27 4 — 31 9,846 9,877 — 
Other loans— — — — 52,105 52,105 — 
Total$320 $953 $3,328 $4,601 $2,381,727 $2,386,328 $— 
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.
June 30, 2026December 31, 2025
(In  Thousands)NonaccrualNonaccrual With No ACLACL on NonaccrualNonaccrualNonaccrual With No ACLACL on Nonaccrual
Commercial & industrial loans$8,166 $5,354 $1,248 $4,251 $1,641 $1,248 
Commercial real estate:
Owner occupied properties10,844 10,844 — 5,134 2,725 86 
Non-owner occupied and multifamily properties1,601 1,057 47 — — — 
Residential real estate:
1-4 family residential properties secured by first liens307 — 43 514 — 60 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens410 372 1 415 372 1 
Other construction, land development and raw land loans1,654 1,654 — 1,654 1,654 — 
Total nonaccrual loans22,982 19,281 1,339 11,968 6,392 1,395 
Government guarantees on nonaccrual loans(1,171)(1,171)— — — — 
Net nonaccrual loans$21,811 $18,110 $1,339 $11,968 $6,392 $1,395 
Financing Receivable, Modified
The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:
Three Months Ended June 30, 2026
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Non-owner occupied and multifamily properties$— $1,057 $1,057 0.14 %
Total$— $1,057 $1,057 0.04 %
Three Months Ended June 30, 2025
Payment ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Owner occupied properties$— $— $— — %
Total$— $— $— — %

Six Months Ended June 30, 2026
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Non-owner occupied and multifamily properties$— $1,057 $1,057 0.14 %
Total$— $1,057 $1,057 0.04 %

Six Months Ended June 30, 2025
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Owner occupied properties$— $3,252 $3,252 0.73 %
Total$— $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 June 30, 2026
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Non-owner occupied and multifamily properties— 2 %0

Three Months Ended June 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Non-owner occupied and multifamily properties— — %0

Six Months Ended June 30, 2026
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Non-owner occupied and multifamily properties$— 2 %0
Six Months Ended June 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans$— — %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)June 30, 2026December 31, 2025
Commercial & industrial loans$208 $142 
Commercial real estate:
Owner occupied properties3,128 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$6,141 $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 June 30, 2026Six Months Ended June 30, 2026
Term modificationTerm and payment modificationTerm modificationTerm and payment modification
(In Thousands)
Commercial real estate:
Owner occupied properties$— $— $— $703 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens372 — 372 — 
Other construction, land development and raw land loans1,376 — 1,376 — 
Total$1,748 $— $1,748 $703 

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Term and payment modificationTerm and payment modification
(In Thousands)
Commercial real estate:
Owner occupied properties$— $3,252 
Total$— $3,252 
The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:
June 30, 2026
Greater Than 89 Days Past DueTotal Past Due
Current
Total
(In Thousands)
Commercial & industrial loans$— $— $208 $208 
Commercial real estate:
Owner occupied properties— — 3,128 3,128 
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 $4,393 $6,141 
June 30, 2025
Greater Than 89 Days Past DueTotal Past DueCurrentTotal
(In Thousands)
Commercial & industrial loans$— $— $768 $768 
Commercial real estate:
Owner occupied properties217 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 liens372 372 — 372 
Other construction, land development and raw land loans1,490 1,490 — 1,490 
Total$2,079 $2,079 $4,019 $6,098