Loans (Tables)

6 Months Ended

Jun. 30, 2026

Loans and Leases Receivable Disclosure [Abstract]

The Company’s loan portfolio consisted of the following as of the dates indicated (in thousands):


		Principal Amount Outstanding				Net Deferred Loan (Fees) Costs				Loans, Net
June 30, 2026
Commercial business		$	767,524			$	1,025			$	768,549
Commercial mortgage–construction			560,063				(2,027	)			558,036
Commercial mortgage–multifamily			565,622				(595	)			565,027
Commercial mortgage–non-owner occupied			972,358				(1,392	)			970,966
Commercial mortgage–owner occupied			347,852				(46	)			347,806
Residential real estate loans			654,339				8,243				662,582
Residential real estate lines			72,848				3,251				76,099
Consumer indirect			747,885				23,241				771,126
Other consumer			32,689				85				32,774
Total		$	4,721,180			$	31,785				4,752,965
Allowance for credit losses–loans											(47,497	)
Total loans, net										$	4,705,468
December 31, 2025
Commercial business		$	737,578			$	729			$	738,307
Commercial mortgage–construction			491,035				(2,477	)			488,558
Commercial mortgage–multifamily			589,437				(705	)			588,732
Commercial mortgage–non-owner occupied			943,514				(1,295	)			942,219
Commercial mortgage–owner occupied			322,782				(6	)			322,776
Residential real estate loans			648,188				8,813				657,001
Residential real estate lines			71,928				3,193				75,121
Consumer indirect			782,802				24,508				807,310
Other consumer			37,746				96				37,842
Total		$	4,625,010			$	32,856				4,657,866
Allowance for credit losses–loans											(47,386	)
Total loans, net										$	4,610,480

Recorded Investment by Loan Class in Current and Nonaccrual Loans

The Company’s recorded investment, by loan class, in current and nonaccrual loans, as well as an analysis of accruing delinquent loans is set forth as of the dates indicated (in thousands):


		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days				Total Past Due				Nonaccrual				Current				Total Loans				Nonaccrual with no specific allowance
June 30, 2026
Commercial business		$	395			$	4,449			$	670			$	5,514			$	7,007			$	755,003			$	767,524			$	6,431
Commercial mortgage–construction			—				2,549				—				2,549				20,520				536,994				560,063				20,520
Commercial mortgage–multifamily			2,278				—				—				2,278				540				562,804				565,622				540
Commercial mortgage–non-owner occupied			874				—				—				874				—				971,484				972,358				—
Commercial mortgage–owner occupied			—				—				—				—				981				346,871				347,852				446
Residential real estate loans			3,563				47				—				3,610				6,974				643,755				654,339				6,974
Residential real estate lines			141				99				—				240				412				72,196				72,848				412
Consumer indirect			10,684				2,747				—				13,431				1,772				732,682				747,885				1,772
Other consumer			359				676				—				1,035				131				31,523				32,689				131
Total loans, gross		$	18,294			$	10,567			$	670			$	29,531			$	38,337			$	4,653,312			$	4,721,180			$	37,226
December 31, 2025
Commercial business		$	294			$	163			$	670			$	1,127			$	4,039			$	732,412			$	737,578			$	528
Commercial mortgage–construction			—				2,463				—				2,463				20,321				468,251				491,035				20,321
Commercial mortgage–multifamily			3,278				—				—				3,278				540				585,619				589,437				540
Commercial mortgage–non-owner occupied			—				—				—				—				—				943,514				943,514				—
Commercial mortgage–owner occupied			—				—				—				—				1,095				321,687				322,782				1,095
Residential real estate loans			3,274				161				—				3,435				6,443				638,310				648,188				6,443
Residential real estate lines			421				—				—				421				374				71,133				71,928				374
Consumer indirect			14,124				2,135				—				16,259				2,155				764,388				782,802				2,155
Other consumer			1,296				198				—				1,494				118				36,134				37,746				118
Total loans, gross		$	22,687			$	5,120			$	670			$	28,477			$	35,085			$	4,561,448			$	4,625,010			$	31,574

Amortized Cost basis of Loans Modified to Borrowers Experiencing Financial Difficulty

The following table presents the amortized cost basis of loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted at June 30, 2026 (in thousands):


		Term Extension
		Amortized Cost Basis				% of Total Loans
Loan Type
Commercial business		$	—				0.0	%
Commercial mortgage–construction			—				0.0	%
Commercial mortgage–multifamily			—				0.0	%
Commercial mortgage–non-owner occupied			—				0.0	%
Commercial mortgage–owner occupied			—				0.0	%
Residential real estate loans			2,807				0.1	%
Residential real estate lines			—				0.0	%
Consumer indirect			—				0.0	%
Other consumer			—				0.0	%
Total		$	2,807				0.1	%

Financial Effect of the Modifications Made to Borrowers Experiencing Financial Difficulty

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 2026:


Term Extension
Loan Type		Financial Effect
Residential real estate loans		Added a weighted average 10.11 years to the life of the loan, which reduced the monthly payment amount for the borrower.

Performance of Loans that are Modified to Borrowers Experiencing Financial Difficulty

The following table depicts the performance of loans that have been modified in the twelve months ended June 30, 2026 (in thousands):


		Payment Status (Amortized Cost Basis)
		Current				30-89 Days Past Due				90+ Days Past Due
Loan Type
Commercial business		$	—			$	—			$	—
Commercial mortgage–construction			—				—				—
Commercial mortgage–multifamily			—				—				—
Commercial mortgage–non-owner occupied			—				—				—
Commercial mortgage–owner occupied			—				—				—
Residential real estate loans			2,463				191				153
Residential real estate lines			—				—				—
Consumer indirect			—				—				—
Other consumer			—				—				—
Total		$	2,463			$	191			$	153

Summary of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by collateral type as of June 30, 2026 and December 31, 2025 (in thousands):


		Collateral type
		Business assets				Real property				Total				Specific Reserve
June 30, 2026
Commercial business		$	6,379			$	221			$	6,600			$	389
Commercial mortgage–construction			—				20,520				20,520				—
Commercial mortgage–multifamily			—				4,715				4,715				—
Commercial mortgage–non-owner occupied			—				13,159				13,159				—
Commercial mortgage–owner occupied			—				5,426				5,426				3,224
Total		$	6,379			$	44,041			$	50,420			$	3,613

December 31, 2025
Commercial business		$	6,148			$	3,155			$	9,303			$	3,218
Commercial mortgage–construction			—				20,321				20,321				—
Commercial mortgage–multifamily			—				4,735				4,735				—
Commercial mortgage–non-owner occupied			—				12,994				12,994				—
Commercial mortgage–owner occupied			—				1,406				1,406				—
Total		$	6,148			$	42,611			$	48,759			$	3,218

Commercial Loan Portfolio Categorized by Internally Assigned Asset Classification

The following tables set forth the Company’s commercial loan portfolio, categorized by internally assigned asset classification, as of the dates indicated (in thousands):


		Term Loans Amortized Cost Basis by Origination Year
		2026				2025				2024				2023				2022				Prior				Revolving Loans Amortized Cost Basis				Revolving Loans Converted to Term				Total
June 30, 2026
Commercial business:
Uncriticized		$	75,926			$	129,821			$	79,882			$	50,962			$	28,598			$	49,850			$	331,080			$	—			$	746,119
Special mention			1,088				22				2,225				1,946				—				395				6,150				—				11,826
Substandard			—				29				500				255				—				164				2,345				—				3,293
Doubtful			—				—				107				—				166				172				6,866				—				7,311
Total		$	77,014			$	129,872			$	82,714			$	53,163			$	28,764			$	50,581			$	346,441			$	—			$	768,549
Current period gross charge-offs		$	—			$	—			$	114			$	—			$	2,934			$	—			$	—			$	—			$	3,048

Commercial mortgage–construction
Uncriticized		$	18,221			$	179,520			$	95,346			$	138,718			$	93,643			$	12			$	—			$	—			$	525,460
Special mention			—				—				—				—				—				2,549				—				—				2,549
Substandard			—				—				—				6,240				3,267				—				—				—				9,507
Doubtful			—				—				—				—				—				20,520				—				—				20,520
Total		$	18,221			$	179,520			$	95,346			$	144,958			$	96,910			$	23,081			$	—			$	—			$	558,036
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial mortgage–multifamily
Uncriticized		$	23,170			$	77,514			$	25,145			$	104,424			$	120,629			$	201,931			$	—			$	—			$	552,813
Special mention			—				—				—				—				—				6,823				—				—				6,823
Substandard			—				—				—				—				4,176				675				—				—				4,851
Doubtful			—				—				—				—				—				540				—				—				540
Total		$	23,170			$	77,514			$	25,145			$	104,424			$	124,805			$	209,969			$	—			$	—			$	565,027
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial mortgage–non-owner occupied
Uncriticized		$	60,956			$	170,487			$	89,022			$	58,740			$	241,850			$	324,186			$	—			$	—			$	945,242
Special mention			—				—				—				—				—				7,971				—				—				7,971
Substandard			—				4,445				—				13,159				—				149				—				—				17,753
Doubtful			—				—				—				—				—				—				—				—				—
Total		$	60,956			$	174,932			$	89,022			$	71,899			$	241,850			$	332,306			$	—			$	—			$	970,966
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial mortgage–owner occupied
Uncriticized		$	45,017			$	34,340			$	73,163			$	20,009			$	55,434			$	117,888			$	—			$	—			$	345,851
Special mention			—				—				—				—				—				408				—				—				408
Substandard			—				371				—				—				—				195				—				—				566
Doubtful			—				—				—				—				—				981				—				—				981
Total		$	45,017			$	34,711			$	73,163			$	20,009			$	55,434			$	119,472			$	—			$	—			$	347,806
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

(4.) LOANS (Continued)


		Term Loans Amortized Cost Basis by Origination Year
		2025				2024				2023				2022				2021				Prior				Revolving Loans Amortized Cost Basis				Revolving Loans Converted to Term				Total
December 31, 2025
Commercial business:
Uncriticized		$	157,771			$	89,340			$	69,005			$	37,834			$	33,956			$	24,534			$	301,296			$	—			$	713,736
Special mention			13				2,332				2,672				—				2				458				6,651				—				12,128
Substandard			—				12				341				7				—				162				8,005				—				8,527
Doubtful			—				164				—				3,101				—				172				479				—				3,916
Total		$	157,784			$	91,848			$	72,018			$	40,942			$	33,958			$	25,326			$	316,431			$	—			$	738,307
Current period gross charge-offs		$	—			$	75			$	2			$	1,994			$	35			$	200			$	—			$	—			$	2,306

Commercial mortgage–construction
Uncriticized		$	85,790			$	108,496			$	150,093			$	103,864			$	—			$	8,024			$	—			$	—			$	456,267
Special mention			—				—				6,240				3,267				2,463				—				—				—				11,970
Substandard			—				—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				20,321				—				—				—				20,321
Total		$	85,790			$	108,496			$	156,333			$	107,131			$	22,784			$	8,024			$	—			$	—			$	488,558
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial mortgage–multifamily
Uncriticized		$	77,817			$	22,987			$	105,464			$	122,718			$	145,614			$	97,115			$	—			$	—			$	571,715
Special mention			—				—				—				174				4,546				6,823				—				—				11,543
Substandard			—				—				—				4,194				—				740				—				—				4,934
Doubtful			—				—				—				—				—				540				—				—				540
Total		$	77,817			$	22,987			$	105,464			$	127,086			$	150,160			$	105,218			$	—			$	—			$	588,732
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Commercial mortgage–non-owner occupied
Uncriticized		$	174,659			$	83,946			$	68,768			$	245,352			$	77,161			$	271,621			$	—			$	—			$	921,507
Special mention			—				—				—				—				—				7,484				—				—				7,484
Substandard			—				—				12,994				—				—				234				—				—				13,228
Doubtful			—				—				—				—				—				—				—				—				-
Total		$	174,659			$	83,946			$	81,762			$	245,352			$	77,161			$	279,339			$	—			$	—			$	942,219
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	597			$	—			$	—			$	597

Commercial mortgage–owner occupied
Uncriticized		$	34,767			$	72,521			$	23,552			$	57,572			$	37,269			$	95,052			$	—			$	—			$	320,733
Special mention			—				—				—				—				—				—				—				—				-
Substandard			—				—				—				—				199				749				—				—				948
Doubtful			—				—				—				—				—				1,095				—				—				1,095
Total		$	34,767			$	72,521			$	23,552			$	57,572			$	37,468			$	96,896			$	—			$	—			$	322,776
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—

Retail Loan Portfolio Categorized by Performance Status

The following tables set forth the Company’s retail loan portfolio, categorized by performance status, as of the dates indicated (in thousands):


		Term Loans Amortized Cost Basis by Origination Year
		2026				2025				2024				2023				2022				Prior				Revolving Loans Amortized Cost Basis				Revolving Loans Converted to Term				Total
June 30, 2026
Residential real estate loans:
Performing		$	31,837			$	65,312			$	53,682			$	97,390			$	68,197			$	339,190			$	—			$	—			$	655,608
Nonperforming			380				476				471				575				585				4,487				—				—				6,974
Total		$	32,217			$	65,788			$	54,153			$	97,965			$	68,782			$	343,677			$	—			$	—			$	662,582
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	20			$	—			$	—			$	20

Residential real estate lines:
Performing		$	—			$	—			$	—			$	—			$	—			$	—			$	73,388			$	2,299			$	75,687
Nonperforming			—				—				—				—				—				—				412				—				412
Total		$	—			$	—			$	—			$	—			$	—			$	—			$	73,800			$	2,299			$	76,099
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	30			$	—			$	30

Consumer indirect:
Performing		$	134,858			$	243,007			$	129,633			$	95,454			$	104,176			$	62,226			$	—			$	—			$	769,354
Nonperforming			127				196				203				345				508				393				—				—				1,772
Total		$	134,985			$	243,203			$	129,836			$	95,799			$	104,684			$	62,619			$	—			$	—			$	771,126
Current period gross charge-offs		$	2			$	1,223			$	1,190			$	1,338			$	1,947			$	1,820			$	—			$	—			$	7,520

Other consumer:
Performing		$	2,474			$	3,398			$	3,711			$	19,174			$	798			$	296			$	2,792			$	—			$	32,643
Nonperforming			—				8				97				4				8				—				14				—				131
Total		$	2,474			$	3,406			$	3,808			$	19,178			$	806			$	296			$	2,806			$	—			$	32,774
Current period gross charge-offs		$	173			$	32			$	51			$	227			$	26			$	2			$	14			$	—			$	525


		Term Loans Amortized Cost Basis by Origination Year
		2025				2024				2023				2022				2021				Prior				Revolving Loans Amortized Cost Basis				Revolving Loans Converted to Term				Total
December 31, 2025
Residential real estate loans:
Performing		$	61,803			$	56,511			$	102,504			$	70,501			$	68,202			$	291,037			$	—			$	—			$	650,558
Nonperforming			155				483				998				699				877				3,231				—				—				6,443
Total		$	61,958			$	56,994			$	103,502			$	71,200			$	69,079			$	294,268			$	—			$	—			$	657,001
Current period gross charge-offs		$	—			$	—			$	19			$	—			$	130			$	19			$	—			$	—			$	168

Residential real estate lines:
Performing		$	—			$	—			$	—			$	—			$	—			$	—			$	73,953			$	794			$	74,747
Nonperforming			—				—				—				—				—				—				374				-				374
Total		$	—			$	—			$	—			$	—			$	—			$	—			$	74,327			$	794			$	75,121
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	27			$	27

Consumer indirect:
Performing		$	283,761			$	158,129			$	121,885			$	142,171			$	78,858			$	20,351			$	—			$	—			$	805,155
Nonperforming			315				354				366				439				516				165				—				—				2,155
Total		$	284,076			$	158,483			$	122,251			$	142,610			$	79,374			$	20,516			$	—			$	—			$	807,310
Current period gross charge-offs		$	645			$	2,375			$	3,645			$	5,390			$	3,603			$	1,652			$	—			$	—			$	17,310

Other consumer:
Performing		$	6,760			$	4,819			$	22,110			$	1,211			$	225			$	384			$	2,215			$	—			$	37,724
Nonperforming			21				9				75				10				—				—				3				—				118
Total		$	6,781			$	4,828			$	22,185			$	1,221			$	225			$	384			$	2,218			$	—			$	37,842
Current period gross charge-offs		$	376			$	206			$	693			$	47			$	15			$	11			$	44			$	—			$	1,392

Changes in the Allowance for Loan Losses

The following table sets forth the changes in the allowance for credit losses – loans for the three and six months ended June 30, 2026 and 2025 (in thousands):


						Commercial Mortgage																Residential Real Estate
		Commercial Business				Construction				Multi- family				Non-Owner Occupied				Owner Occupied				Loans				Lines				Consumer Indirect				Other Consumer				Total
Three months ended June 30, 2026
Beginning balance		$	7,015			$	4,753			$	2,773			$	12,226			$	2,786			$	3,939			$	767			$	10,152			$	250			$	44,661
Charge-offs			—				—				—				—				—				—				(30	)			(3,184	)			(201	)			(3,415	)
Recoveries			23				—				—				1				—				—				—				2,044				50				2,118
Provision (benefit)			373				330				(156	)			267				1,270				(183	)			(109	)			2,148				193				4,133
Ending balance		$	7,411			$	5,083			$	2,617			$	12,494			$	4,056			$	3,756			$	628			$	11,160			$	292			$	47,497

Six months ended June 30, 2026
Beginning balance		$	9,568			$	4,425			$	3,316			$	10,494			$	3,380			$	3,511			$	778			$	11,554			$	360			$	47,386
Charge-offs			(3,048	)			—				—				—				—				(20	)			(30	)			(7,520	)			(526	)			(11,144	)
Recoveries			81				—				—				2				1				1				3				4,531				148				4,767
Provision (benefit)			810				658				(699	)			1,998				675				264				(123	)			2,595				310				6,488
Ending balance		$	7,411			$	5,083			$	2,617			$	12,494			$	4,056			$	3,756			$	628			$	11,160			$	292			$	47,497

						Commercial Mortgage																Residential Real Estate
		Commercial Business				Construction				Multi- family				Non-Owner Occupied				Owner Occupied				Loans				Lines				Consumer Indirect				Other Consumer				Total
Three months ended June 30, 2025
Beginning balance		$	7,621			$	5,312			$	4,110			$	9,709			$	4,013			$	4,862			$	949			$	11,798			$	590			$	48,964
Charge-offs			(1,936	)			—				—				(597	)			—				(97	)			(27	)			(4,149	)			(541	)			(7,347	)
Recoveries			33				—				—				1				1				5				—				3,207				50				3,297
Provision (benefit)			3,278				(798	)			(180	)			(245	)			(927	)			(132	)			47				927				407				2,377
Ending balance		$	8,996			$	4,514			$	3,930			$	8,868			$	3,087			$	4,638			$	969			$	11,783			$	506			$	47,291

Six months ended June 30, 2025
Beginning balance			8,665				6,824				3,458				7,330				4,183				3,596				793				12,705				487				48,041
Charge-offs			(2,075	)			—				—				(597	)			—				(162	)			(27	)			(8,977	)			(753	)			(12,591	)
Recoveries			115				—				—				2				2				29				—				5,886				138				6,172
Provision (benefit)			2,291				(2,310	)			472				2,133				(1,098	)			1,175				203				2,169				634				5,669
Ending balance		$	8,996			$	4,514			$	3,930			$	8,868			$	3,087			$	4,638			$	969			$	11,783			$	506			$	47,291