v3.26.1
LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
Total net loans receivable at June 30, 2026 and December 31, 2025 are summarized as follows:
June 30, 2026Percentage
of Total		December 31, 2025Percentage
of Total
Farmland$26,273 0.40 %$27,583 0.43 %
Owner-occupied, nonfarm nonresidential properties647,836 9.95 636,444 9.80 
Agricultural production and other loans to farmers5,396 0.08 5,989 0.09 
Loans to depository institutions2,491 0.04 2,439 0.04 
Commercial and Industrial886,736 13.61 778,978 12.00 
Obligations (other than securities and leases) of states and political subdivisions165,185 2.54 171,486 2.64 
Other loans58,720 0.90 47,719 0.74 
Other construction loans and all land development and other land loans438,329 6.73 366,174 5.64 
Multifamily (5 or more) residential properties624,696 9.59 709,832 10.93 
Non-owner occupied, nonfarm nonresidential properties1,344,691 20.64 1,419,643 21.86 
1-4 Family Construction34,599 0.53 41,659 0.64 
Home equity lines of credit265,398 4.07 250,823 3.86 
Residential Mortgages secured by first liens1,743,623 26.77 1,763,071 27.15 
Residential Mortgages secured by junior liens138,349 2.12 140,790 2.17 
Other revolving credit plans52,661 0.81 48,953 0.75 
Automobile14,984 0.23 17,037 0.26 
Other consumer48,701 0.75 51,474 0.79 
Credit cards14,837 0.23 13,276 0.20 
Overdrafts356 0.01 370 0.01 
Total loans receivable$6,513,861 100.00 %$6,493,740 100.00 %
Less: Allowance for credit losses(67,455)(67,055)
Loans receivable, net$6,446,406 $6,426,685 
Net deferred loan origination fees (costs) included in the above loan table$(671)$(259)

The Corporation's outstanding loans receivable and related unfunded commitments are primarily concentrated within Central, Northwest and Northeast regions of Pennsylvania, Central and Northeast Ohio, Western New York and Southwest Virginia. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management's assessment of the customer. The Corporation maintains lending policies to control the quality of the loan portfolio. These policies delegate the authority to extend loans under specific guidelines and underwriting standards. These policies are prepared by the Corporation's management and reviewed and approved annually by the Corporation's Board of Directors.

Syndicated loans, net of deferred fees and costs, are included in the commercial and industrial classification and totaled $93.9 million and $70.8 million as of June 30, 2026 and December 31, 2025, respectively.
Transactions in the allowance for credit losses for the three months ended June 30, 2026 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland$161 $— $— $77 $238 
Owner-occupied, nonfarm nonresidential properties6,161 — 17 (136)6,042 
Agricultural production and other loans to farmers38 — — (6)32 
Loans to depository institutions— — — 16 16 
Commercial and Industrial10,148 (2)2 2,857 13,005 
Obligations (other than securities and leases) of states and political subdivisions1,770 — — (68)1,702 
Other loans454 — — 31 485 
Other construction loans and all land development and other land loans4,708 — — (381)4,327 
Multifamily (5 or more) residential properties
4,161 — — (565)3,596 
Non-owner occupied, nonfarm nonresidential properties15,005 — — (1,653)13,352 
1-4 Family Construction279 (2)— (9)268 
Home equity lines of credit2,097 — — (283)1,814 
Residential Mortgages secured by first liens15,362 (871)11 1,007 15,509 
Residential Mortgages secured by junior liens1,583 — — 139 1,722 
Other revolving credit plans1,414 (27)6 97 1,490 
Automobile206 (37)— 6 175 
Other consumer3,087 (371)14 378 3,108 
Credit cards194 (70)5 89 218 
Overdrafts227 (157)39 247 356 
Total loans$67,055 $(1,537)$94 $1,843 $67,455 
(1) Excludes provision for credit losses related to unfunded commitments. Note 10, "Off-Balance Sheet Commitments and Contingencies," to the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

Transactions in the allowance for credit losses for the six months ended June 30, 2026 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland$162 $— $— $76 $238 
Owner-occupied, nonfarm nonresidential properties6,176 (47)17 (104)6,042 
Agricultural production and other loans to farmers37 — — (5)32 
Loans to depository institutions20 — — (4)16 
Commercial and Industrial9,360 (110)47 3,708 13,005 
Obligations (other than securities and leases) of states and political subdivisions1,823 — — (121)1,702 
Other loans454 — — 31 485 
Other construction loans and all land development and other land loans4,366 — — (39)4,327 
Multifamily (5 or more) residential properties
4,314 — — (718)3,596 
Non-owner occupied, nonfarm nonresidential properties15,467 — 3 (2,118)13,352 
1-4 Family Construction350 (2)— (80)268 
Home equity lines of credit1,884 — — (70)1,814 
Residential Mortgages secured by first liens15,910 (944)13 530 15,509 
Residential Mortgages secured by junior liens1,732 — — (10)1,722 
Other revolving credit plans1,222 (53)25 296 1,490 
Automobile207 (40)3 5 175 
Other consumer3,056 (860)35 877 3,108 
Credit cards146 (160)12 220 218 
Overdrafts369 (331)65 253 356 
Total loans$67,055 $(2,547)$220 $2,727 $67,455 
(1) Excludes provision for credit losses related to unfunded commitments. Note 10, "Off-Balance Sheet Commitments and Contingencies," to the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.
Transactions in the allowance for credit losses for the three months ended June 30, 2025 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland$161 $— $— $(4)$157 
Owner-occupied, nonfarm nonresidential properties5,827 (1,493)15 178 4,527 
Agricultural production and other loans to farmers39 — — (2)37 
Commercial and Industrial7,210 (74)— 1,207 8,343 
Obligations (other than securities and leases) of states and political subdivisions1,371 — — (43)1,328 
Other loans326 — — 88 414 
Other construction loans and all land development and other land loans2,569 — — 166 2,735 
Multifamily (5 or more) residential properties3,092 (1,072)— 585 2,605 
Non-owner occupied, nonfarm nonresidential properties10,172 — — 217 10,389 
1-4 Family Construction122 — — (22)100 
Home equity lines of credit1,564 — 10 163 1,737 
Residential Mortgages secured by first liens9,099 (8)1 770 9,862 
Residential Mortgages secured by junior liens1,451 — — 121 1,572 
Other revolving credit plans855 (22)2 197 1,032 
Automobile262 (5)— (10)247 
Other consumer2,921 (604)18 609 2,944 
Credit cards125 (15)25 10 145 
Overdrafts191 (105)24 45 155 
Total loans$47,357 $(3,398)$95 $4,275 $48,329 
(1) Excludes provision for credit losses related to unfunded commitments. Note 10, "Off-Balance Sheet Commitments and Contingencies," to the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

Transactions in the allowance for credit losses for the six months ended June 30, 2025 were as follows:
Beginning
Allowance		(Charge-offs)Recoveries
Provision (Benefit) for Credit Losses on Loans Receivable(1)
Ending Allowance
Farmland$167 $— $— $(10)$157 
Owner-occupied, nonfarm nonresidential properties5,696 (1,516)29 318 4,527 
Agricultural production and other loans to farmers37 — — — 37 
Commercial and Industrial7,759 (724)— 1,308 8,343 
Obligations (other than securities and leases) of states and political subdivisions1,369 — — (41)1,328 
Other loans329 — — 85 414 
Other construction loans and all land development and other land loans2,571 — — 164 2,735 
Multifamily (5 or more) residential properties2,969 (1,072)— 708 2,605 
Non-owner occupied, nonfarm nonresidential properties10,110 — — 279 10,389 
1-4 Family Construction198 — — (98)100 
Home equity lines of credit1,340 — 10 387 1,737 
Residential Mortgages secured by first liens8,958 (42)1 945 9,862 
Residential Mortgages secured by junior liens1,343 — — 229 1,572 
Other revolving credit plans960 (25)3 94 1,032 
Automobile275 (5)— (23)247 
Other consumer2,892 (1,171)30 1,193 2,944 
Credit cards127 (137)29 126 145 
Overdrafts257 (203)51 50 155 
Total loans$47,357 $(4,895)$153 $5,714 $48,329 
(1) Excludes provision for credit losses related to unfunded commitments. Note 10, "Off-Balance Sheet Commitments and Contingencies," to the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments of the Corporation.

The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, delinquency status and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions.
For the three and six months ended June 30, 2026, the allowance for credit losses increased $400 thousand, primarily driven by growth in the Corporation's loan portfolio. Significant uncertainty persists in the domestic and global economic environment due to changes in U.S. tariffs and related actions by U.S. trading partners, elevated interest rates, inflationary pressures, fluctuating consumer confidence, and geopolitical events. The Corporation continues to monitor these conditions and other economic factors that may affect the financial strength of corporate and consumer borrowers, and management will update its estimate of expected credit losses as additional information becomes available.

Provision for credit losses was $1.8 million and $2.8 million for the three and six months ended June 30, 2026, respectively, compared to $4.3 million and $5.9 million for the three and six months ended June 30, 2025, respectively. The decrease in provision for credit losses was primarily attributable to two previously disclosed commercial real estate charge-offs recognized during the second quarter of 2025. In addition, included in the provision for credit losses for the three and six months ended June 30, 2026 was a reversal of $66 thousand and provision of $48 thousand, respectively, related to the allowance for unfunded commitments compared to provisions of $63 thousand and $180 thousand, respectively, related to the allowance for unfunded commitments for the three and six months ended June 30, 2025.

The following tables present the amortized cost basis of loans receivable on nonaccrual status and loans receivable past due over 89 days still accruing as of June 30, 2026 and December 31, 2025, respectively:

June 30, 2026
NonaccrualNonaccrual With No Allowance for Credit LossLoans Receivable Past Due over 89 Days Still Accruing
Farmland$859 $759 $— 
Owner-occupied, nonfarm nonresidential properties8,858 8,162 — 
Commercial and Industrial18,449 17,066 — 
Other construction loans and all land development and other land loans4,297 351 — 
Multifamily (5 or more) residential properties752 107 — 
Non-owner occupied, nonfarm nonresidential properties4,935 2,735 — 
Home equity lines of credit2,558 2,558 — 
Residential Mortgages secured by first liens12,295 11,971 1 
Residential Mortgages secured by junior liens995 995 — 
Other revolving credit plans99 99 — 
Automobile181 181 — 
Other consumer564 564 — 
Credit cards— — 26 
Total$54,842 $45,548 $27 

December 31, 2025
NonaccrualNonaccrual With No Allowance for Credit LossLoans Receivable Past Due over 89 Days Still Accruing
Farmland$554 $554 $— 
Owner-occupied, nonfarm nonresidential properties5,849 5,153 — 
Commercial and Industrial8,856 8,335 — 
Other construction loans and all land development and other land loans4,011 378 — 
Multifamily (5 or more) residential properties799 155 — 
Non-owner occupied, nonfarm nonresidential properties2,883 470 — 
Home equity lines of credit2,004 2,004 — 
Residential Mortgages secured by first liens12,971 12,685 — 
Residential Mortgages secured by junior liens1,088 587 — 
Other revolving credit plans41 41 — 
Automobile55 55 — 
Other consumer734 734 — 
Credit cards— — 42 
Total$39,845 $31,151 $42 
All payments received while on nonaccrual status are applied against the principal balance of the loan. The Corporation does not recognize interest income while a loan is on nonaccrual status.

The following table presents the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans as of June 30, 2026:
Real Estate CollateralNon-Real Estate Collateral
Farmland$644 $— 
Owner-occupied, nonfarm nonresidential properties5,491 — 
Commercial and Industrial125 4,086 
Other construction loans and all land development and other land loans3,946 — 
Multifamily (5 or more) residential properties645 — 
Non-owner occupied, nonfarm nonresidential properties4,412 — 
Home equity lines of credit957 — 
Residential Mortgages secured by first liens1,460 — 
Residential Mortgages secured by junior liens384 — 
Total$18,064 $4,086 

The following table presents the amortized cost basis of loans receivable that are individually evaluated and collateral-dependent by class of loans as of December 31, 2025:
Real Estate CollateralNon-Real Estate Collateral
Farmland$312 $— 
Owner-occupied, nonfarm nonresidential properties2,542 — 
Commercial and Industrial373 3,045 
Other construction loans and all land development and other land loans3,633 — 
Multifamily (5 or more) residential properties799 — 
Non-owner occupied, nonfarm nonresidential properties2,413 — 
Home equity lines of credit1,011 — 
Residential Mortgages secured by first liens2,487 — 
Residential Mortgages secured by junior liens501 — 
Total$14,071 $3,045 
The following table presents the aging of the amortized cost basis in past-due loans receivable as of June 30, 2026 by class of loans:
30 - 59
Days Past Due		60 - 89
Days Past Due		Greater Than 89
Days Past Due		Total Past DueLoans Receivable Not Past DueTotal
Farmland$339 $— $606 $945 $25,328 $26,273 
Owner-occupied, nonfarm nonresidential properties4,324 764 2,749 7,837 639,999 647,836 
Agricultural production and other loans to farmers— — — — 5,396 5,396 
Loans to depository institutions— — — — 2,491 2,491 
Commercial and Industrial2,424 6,671 6,955 16,050 870,686 886,736 
Obligations (other than securities and leases) of states and political subdivisions— — — — 165,185 165,185 
Other loans— — — — 58,720 58,720 
Other construction loans and all land development and other land loans2,832 303 1,559 4,694 433,635 438,329 
Multifamily (5 or more) residential properties— 107 645 752 623,944 624,696 
Non-owner occupied, nonfarm nonresidential properties— 539 340 879 1,343,812 1,344,691 
1-4 Family Construction— — — — 34,599 34,599 
Home equity lines of credit1,457 1,025 874 3,356 262,042 265,398 
Residential Mortgages secured by first liens3,703 5,561 6,299 15,563 1,728,060 1,743,623 
Residential Mortgages secured by junior liens193 41 181 415 137,934 138,349 
Other revolving credit plans297 45 78 420 52,241 52,661 
Automobile84 59 181 324 14,660 14,984 
Other consumer330 283 293 906 47,795 48,701 
Credit cards200 204 26 430 14,407 14,837 
Overdrafts— — — — 356 356 
Total$16,183 $15,602 $20,786 $52,571 $6,461,290 $6,513,861 
The following table presents the aging of the amortized cost basis in past-due loans receivable as of December 31, 2025 by class of loans:
30 - 59
Days Past Due		60 - 89
Days Past Due		Greater Than 89
Days Past Due		Total Past DueLoans Receivable Not Past Due Total
Farmland$— $— $241 $241 $27,342 $27,583 
Owner-occupied, nonfarm nonresidential properties3,962 4,316 2,454 10,732 625,712 636,444 
Agricultural production and other loans to farmers— — — — 5,989 5,989 
Loans to depository institutions— — — — 2,439 2,439 
Commercial and Industrial975 1,376 6,715 9,066 769,912 778,978 
Obligations (other than securities and leases) of states and political subdivisions— — — — 171,486 171,486 
Other loans— — — — 47,719 47,719 
Other construction loans and all land development and other land loans2,660 62 1,565 4,287 361,887 366,174 
Multifamily (5 or more) residential properties— — 645 645 709,187 709,832 
Non-owner occupied, nonfarm nonresidential properties3,171 — — 3,171 1,416,472 1,419,643 
1-4 Family Construction— — — — 41,659 41,659 
Home equity lines of credit1,115 373 801 2,289 248,534 250,823 
Residential Mortgages secured by first liens13,304 8,450 7,935 29,689 1,733,382 1,763,071 
Residential Mortgages secured by junior liens281 538 198 1,017 139,773 140,790 
Other revolving credit plans78 34 21 133 48,820 48,953 
Automobile217 19 23 259 16,778 17,037 
Other consumer426 319 329 1,074 50,400 51,474 
Credit cards139 67 42 248 13,028 13,276 
Overdrafts— — — — 370 370 
Total$26,328 $15,554 $20,969 $62,851 $6,430,889 $6,493,740 

Loan Modifications

Occasionally, the Corporation modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Corporation provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction.
The following table presents the amortized cost basis of loans at June 30, 2026 that were both experiencing financial difficulty and modified during the three months ended June 30, 2026, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Payment Delay and Term ExtensionTotal Class of Financing Receivable
Owner-occupied, nonfarm nonresidential properties$— $700 $— $— $— 0.1 %
Other construction loans and all land development and other land loans— 5,235 — — — 1.2 
Non-owner occupied, nonfarm nonresidential properties— — 10,115 — — 0.8 
Total$— $5,935 $10,115 $— $— 0.2 %

The following table presents the amortized cost basis of loans at June 30, 2026 that were both experiencing financial difficulty and modified during the six months ended June 30, 2026, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Payment Delay and Term ExtensionTotal Class of Financing Receivable
Owner-occupied, nonfarm nonresidential properties$— $700 $— $— $— 0.1 %
Commercial and Industrial— — 131 — — — 
Other construction loans and all land development and other land loans— 5,235 — — — 1.2 
Non-owner occupied, nonfarm nonresidential properties— — 10,115 — — 0.8 
Total$— $5,935 $10,246 $— $— 0.2 %

The Corporation had $46 thousand unfunded available credit to customers whose loan receivables are included in the previous tables for the three and six months ended June 30, 2026.

The following table presents the amortized cost basis of loans at June 30, 2025 that were both experiencing financial difficulty and modified during the three months ended June 30, 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Payment Delay and Term ExtensionTotal Class of Financing Receivable
Owner-occupied, nonfarm nonresidential properties$— $696 $— $— $— 0.1 %
Commercial and Industrial— 6,801 — — — 1.0 
Non-owner occupied, nonfarm nonresidential properties— 3,596 — — — 0.3 
Total$— $11,093 $— $— $— 0.2 %
The following table presents the amortized cost basis of loans at June 30, 2025 that were both experiencing financial difficulty and modified during the six months ended June 30, 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Payment Delay and Term ExtensionTotal Class of Financing Receivable
Owner-occupied, nonfarm nonresidential properties$— $696 $— $— $— 0.1 %
Commercial and Industrial— 7,011 163 — — 1.0 
Other construction loans and all land development and other land loans— — 10,112 — — 3.4 
Non-owner occupied, nonfarm nonresidential properties— 3,596 1,962 — — 0.5 
Total$— $11,303 $12,237 $— $— 0.5 %

The Corporation had no unfunded available credit to customers whose loan receivables are included in the previous tables for the three and six months ended June 30, 2025.

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the performance of such loans that have been modified during the twelve months ended June 30, 2026:

Current30 - 59
Days Past Due		60 - 89
Days Past Due		Greater Than 89
Days Past Due		Total Past Due
Owner-occupied, nonfarm nonresidential properties$2,307 $— $— $— $— 
Commercial and Industrial131 — — — — 
Other construction loans and all land development and other land loans2,709 2,660 — — 2,660 
Multifamily (5 or more) residential properties
— — 107 — 107 
Non-owner occupied, nonfarm nonresidential properties14,392 — — — — 
Residential Mortgages secured by first liens200 — — — — 
Residential Mortgages secured by junior liens384 — — — — 
Total$20,123 $2,660 $107 $— $2,767 

The following table presents the performance of such loans that have been modified during the twelve months ended June 30, 2025:

Current30 - 59
Days Past Due		60 - 89
Days Past Due		Greater Than 89
Days Past Due		Total Past Due
Owner-occupied, nonfarm nonresidential properties$696 $— $— $— $— 
Commercial and Industrial7,109 — 65 — 65 
Other construction loans and all land development and other land loans10,112 — — — — 
Non-owner occupied, nonfarm nonresidential properties5,558 — — — — 
Total$23,475 $— $65 $— $65 
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended June 30, 2026:

Principal ForgivenessWeighted Average
Term Extension
(in years)		Weighted Average
Interest Rate Reduction
Non-owner occupied, nonfarm nonresidential properties$— 0.50— %
Total$— 0.50— %

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2026:

Principal ForgivenessWeighted Average
Term Extension
(in years)		Weighted Average
Interest Rate Reduction
Commercial and Industrial$— 1.00— %
Non-owner occupied, nonfarm nonresidential properties— 0.50— 
Total$— 0.51— %

There was no principal forgiveness, term extension or interest rate reductions for the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended June 30, 2025.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2025:

Principal ForgivenessWeighted Average
Term Extension
(in years)		Weighted Average
Interest Rate Reduction
Commercial and Industrial$— 0.96— %
Other construction loans and all land development and other land loans— 0.75— 
Non-owner occupied, nonfarm nonresidential properties— 0.50— 
Total$— 0.71— %

There were no loans that had a payment default during the three months ended June 30, 2026 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

There were no loans that had a payment default during the three months ended June 30, 2025 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

If the Corporation determines that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off and the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

Credit Quality Indicators

The Corporation categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually to classify the loans as to credit risk.

The Corporation uses the following definitions for risk ratings:

Special Mention: A loan classified as special mention has a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Corporation's credit position at some future date.
Substandard: A loan classified as substandard is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. The loan has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

Doubtful: A loan classified as doubtful has all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables represent the Corporation's commercial credit risk profile by risk rating. Loans receivable not rated as special mention, substandard, or doubtful are considered to be pass rated loans.

June 30, 2026
Non-Pass Rated
PassSpecial MentionSubstandardDoubtfulTotal Non-PassTotal
Farmland$20,968 $130 $5,175 $— $5,305 $26,273 
Owner-occupied, nonfarm nonresidential properties613,918 1,668 32,250 — 33,918 647,836 
Agricultural production and other loans to farmers5,396 — — — — 5,396 
Loans to depository institutions2,491 — — — — 2,491 
Commercial and Industrial826,599 4,097 56,040 — 60,137 886,736 
Obligations (other than securities and leases) of states and political subdivisions165,185 — — — — 165,185 
Other loans57,569 1,151 — — 1,151 58,720 
Other construction loans and all land development and other land loans431,588 — 6,741 — 6,741 438,329 
Multifamily (5 or more) residential properties
616,147 4,155 4,394 — 8,549 624,696 
Non-owner occupied, nonfarm nonresidential properties1,314,161 10,720 19,810 — 30,530 1,344,691 
Total$4,054,022 $21,921 $124,410 $— $146,331 $4,200,353 

December 31, 2025
Non-Pass Rated
PassSpecial MentionSubstandardDoubtfulTotal Non-PassTotal
Farmland$22,370 $— $5,213 $— $5,213 $27,583 
Owner-occupied, nonfarm nonresidential properties607,698 2,708 26,038 — 28,746 636,444 
Agricultural production and other loans to farmers5,989 — — — — 5,989 
Loans to depository institutions2,439 — — — — 2,439 
Commercial and Industrial714,190 5,960 58,828 — 64,788 778,978 
Obligations (other than securities and leases) of states and political subdivisions171,486 — — — — 171,486 
Other loans46,569 1,150 — — 1,150 47,719 
Other construction loans and all land development and other land loans362,193 — 3,981 — 3,981 366,174 
Multifamily (5 or more) residential properties
699,736 3,432 6,664 — 10,096 709,832 
Non-owner occupied, nonfarm nonresidential properties1,390,810 10,788 18,045 — 28,833 1,419,643 
Total$4,023,480 $24,038 $118,769 $— $142,807 $4,166,287 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of June 30, 2026. Current period originations may include modifications.
Term Loans Amortized Cost Basis by Origination Year
20262025202420232022PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Farmland
Risk rating
Pass$253 $3,708 $23 $738 $4,524 $11,387 $335 $— $20,968 
Special mention— — 130 — — — — — 130 
Substandard— — 152 100 4,567 356 — — 5,175 
Total$253 $3,708 $305 $838 $9,091 $11,743 $335 $— $26,273 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass$65,677 $72,631 $74,631 $67,715 $97,491 $215,203 $20,570 $— $613,918 
Special mention27 48 — 222 230 750 391 — 1,668 
Substandard— 1,152 18,043 4,182 2,743 5,665 465 — 32,250 
Total$65,704 $73,831 $92,674 $72,119 $100,464 $221,618 $21,426 $— $647,836 
Current period gross write offs$— $— $— $— $42 $5 $— $— $47 
Agricultural production and other loans to farmers
Risk rating
Pass$66 $11 $4,211 $376 $— $15 $717 $— $5,396 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$66 $11 $4,211 $376 $— $15 $717 $— $5,396 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Loans to depository institutions
Risk rating
Pass$— $— $— $— $— $— $2,491 $— $2,491 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$— $— $— $— $— $— $2,491 $— $2,491 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Commercial and Industrial
Risk rating
Pass$139,181 $111,889 $95,716 $21,572 $60,237 $50,772 $347,232 $— $826,599 
Special mention— 16 199 12 — 793 3,077 — 4,097 
Substandard132 1,496 389 4,742 11,169 1,895 36,217 — 56,040 
Total$139,313 $113,401 $96,304 $26,326 $71,406 $53,460 $386,526 $— $886,736 
Current period gross write offs$— $— $37 $— $2 $— $71 $— $110 
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass$5,673 $1,112 $6,157 $30,168 $17,628 $101,029 $3,418 $— $165,185 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$5,673 $1,112 $6,157 $30,168 $17,628 $101,029 $3,418 $— $165,185 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Term Loans Amortized Cost Basis by Origination Year
20262025202420232022PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Other loans
Risk rating
Pass$12,086 $23,129 $605 $2,833 $11,486 $5,504 $1,926 $— $57,569 
Special mention— — — — — — 1,151 — 1,151 
Substandard— — — — — — — — — 
Total$12,086 $23,129 $605 $2,833 $11,486 $5,504 $3,077 $— $58,720 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Other construction loans and all land development and other land loans
Risk rating
Pass$49,022 $158,815 $106,585 $53,179 $30,083 $5,491 $28,413 $— $431,588 
Special mention— — — — — — — — — 
Substandard— 2,660 2,574 — 135 1,372 — — 6,741 
Total$49,022 $161,475 $109,159 $53,179 $30,218 $6,863 $28,413 $— $438,329 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Multifamily (5 or more) residential properties
Risk rating
Pass$9,119 $122,654 $30,205 $89,237 $254,690 $109,138 $1,104 $— $616,147 
Special mention— — — — 886 3,269 — — 4,155 
Substandard— 3,642 — 107 — 645 — — 4,394 
Total$9,119 $126,296 $30,205 $89,344 $255,576 $113,052 $1,104 $— $624,696 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass$67,513 $163,857 $161,985 $188,630 $361,184 $359,616 $11,376 $— $1,314,161 
Special mention— 10,112 — — 203 — 405 — 10,720 
Substandard— 58 13,570 734 465 4,783 200 — 19,810 
Total$67,513 $174,027 $175,555 $189,364 $361,852 $364,399 $11,981 $— $1,344,691 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by risk grade within each portfolio segment as of December 31, 2025. Current period originations may include modifications.
Term Loans Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Farmland
Risk rating
Pass$3,753 $123 $852 $4,898 $5,664 $6,500 $580 $— $22,370 
Special mention— — — — — — — — — 
Substandard— 163 — 4,618 — 432 — — 5,213 
Total$3,753 $286 $852 $9,516 $5,664 $6,932 $580 $— $27,583 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Owner-occupied, nonfarm nonresidential properties
Risk rating
Pass$73,282 $73,484 $77,896 $118,194 $113,910 $139,469 $11,463 $— $607,698 
Special mention50 — 226 236 337 1,749 110 — 2,708 
Substandard102 14,681 2,239 3,097 933 4,179 807 — 26,038 
Total$73,434 $88,165 $80,361 $121,527 $115,180 $145,397 $12,380 $— $636,444 
Current period gross write offs$— $— $— $1,516 $— $— $— $— $1,516 
Agricultural production and other loans to farmers
Risk rating
Pass$98 $4,816 $410 $5 $12 $24 $624 $— $5,989 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$98 $4,816 $410 $5 $12 $24 $624 $— $5,989 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Loans to depository institutions
Risk rating
Pass$— $2,439 $— $— $— $— $— $— $2,439 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$— $2,439 $— $— $— $— $— $— $2,439 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Commercial and Industrial
Risk rating
Pass$133,217 $109,670 $38,959 $81,882 $44,264 $31,010 $275,188 $— $714,190 
Special mention20 423 60 — 1,339 26 4,092 — 5,960 
Substandard2,250 274 3,947 12,928 407 925 38,097 — 58,828 
Total$135,487 $110,367 $42,966 $94,810 $46,010 $31,961 $317,377 $— $778,978 
Current period gross write offs$22 $49 $98 $9 $26 $147 $656 $31 $1,038 
Obligations (other than securities and leases) of states and political subdivisions
Risk rating
Pass$933 $6,563 $30,181 $18,655 $39,626 $71,173 $4,355 $— $171,486 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$933 $6,563 $30,181 $18,655 $39,626 $71,173 $4,355 $— $171,486 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Term Loans Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Other loans
Risk rating
Pass$23,315 $860 $2,903 $11,888 $4,537 $1,362 $1,704 $— $46,569 
Special mention— — — — — — 1,150 — 1,150 
Substandard— — — — — — — — — 
Total$23,315 $860 $2,903 $11,888 $4,537 $1,362 $2,854 $— $47,719 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Other construction loans and all land development and other land loans
Risk rating
Pass$126,890 $108,759 $71,368 $36,239 $7,249 $2,635 $9,053 $— $362,193 
Special mention— — — — — — — — — 
Substandard— 2,462 — 147 — 1,372 — — 3,981 
Total$126,890 $111,221 $71,368 $36,386 $7,249 $4,007 $9,053 $— $366,174 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Multifamily (5 or more) residential properties
Risk rating
Pass$129,491 $60,801 $91,724 $278,967 $79,805 $56,441 $2,507 $— $699,736 
Special mention— — — — 3,432 — — — 3,432 
Substandard5,721 — 299 — 644 — — — 6,664 
Total$135,212 $60,801 $92,023 $278,967 $83,881 $56,441 $2,507 $— $709,832 
Current period gross write offs$— $— $— $1,072 $— $— $— $— $1,072 
Non-owner occupied, nonfarm nonresidential properties
Risk rating
Pass$175,561 $163,033 $246,911 $388,071 $230,700 $179,764 $6,770 $— $1,390,810 
Special mention10,115 — 56 206 — — 411 — 10,788 
Substandard— 13,340 744 471 — 3,490 — — 18,045 
Total$185,676 $176,373 $247,711 $388,748 $230,700 $183,254 $7,181 $— $1,419,643 
Current period gross write offs$— $— $— $— $— $— $— $— $— 

The Corporation considers the performance of the loan portfolio and its impact on the allowance for credit losses. For 1-4 family construction, home equity lines of credit, residential mortgages secured by first liens, residential mortgages secured by junior liens, automobile, credit cards, other revolving credit plans and other consumer segments, the Corporation evaluates credit quality based on the performance status of the loan, which was previously presented, and by payment activity. Nonperforming loans include loans receivable on nonaccrual status and loans receivable past due over 89 days and still accruing interest.

June 30, 2026December 31, 2025
PerformingNonperformingTotalPerformingNonperformingTotal
1-4 Family Construction$34,599 $— $34,599 $41,659 $— $41,659 
Home equity lines of credit262,840 2,558 265,398 248,819 2,004 250,823 
Residential Mortgages secured by first liens1,731,327 12,296 1,743,623 1,750,100 12,971 1,763,071 
Residential Mortgages secured by junior liens137,354 995 138,349 139,702 1,088 140,790 
Other revolving credit plans52,562 99 52,661 48,912 41 48,953 
Automobile14,803 181 14,984 16,982 55 17,037 
Other consumer48,137 564 48,701 50,740 734 51,474 
Total$2,281,622 $16,693 $2,298,315 $2,296,914 $16,893 $2,313,807 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by payment activity within each portfolio segment as of June 30, 2026. Current period originations may include modifications.
Term Loans Amortized Cost Basis by Origination Year
20262025202420232022PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
1-4 Family Construction
Payment performance
Performing$8,547 $14,318 $8,170 $3,550 $— $— $14 $— $34,599 
Nonperforming— — — — — — — — — 
Total$8,547 $14,318 $8,170 $3,550 $— $— $14 $— $34,599 
Current period gross write offs$— $2 $— $— $— $— $— $— $2 
Home equity lines of credit
Payment performance
Performing$33,598 $71,385 $42,803 $24,790 $28,089 $46,131 $8,807 $7,237 $262,840 
Nonperforming— — — — — 32 35 2,491 2,558 
Total$33,598 $71,385 $42,803 $24,790 $28,089 $46,163 $8,842 $9,728 $265,398 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Residential mortgages secured by first lien
Payment performance
Performing$76,167 $186,319 $176,156 $181,836 $335,827 $772,298 $2,724 $— $1,731,327 
Nonperforming— 264 1,380 792 2,735 7,125 — — 12,296 
Total$76,167 $186,583 $177,536 $182,628 $338,562 $779,423 $2,724 $— $1,743,623 
Current period gross write offs$— $— $— $871 $72 $1 $— $— $944 
Residential mortgages secured by junior liens
Payment performance
Performing$19,055 $25,395 $21,416 $22,691 $24,169 $22,891 $1,737 $— $137,354 
Nonperforming— 384 42 175 43 292 59 — 995 
Total$19,055 $25,779 $21,458 $22,866 $24,212 $23,183 $1,796 $— $138,349 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Other revolving credit plans
Payment performance
Performing$5,391 $6,791 $6,312 $5,197 $6,270 $22,601 $— $— $52,562 
Nonperforming— 10 3 36 11 39 — — 99 
Total$5,391 $6,801 $6,315 $5,233 $6,281 $22,640 $— $— $52,661 
Current period gross write offs$— $— $5 $— $10 $38 $— $— $53 
Automobile
Payment performance
Performing$2,622 $4,006 $3,105 $2,857 $1,388 $825 $— $— $14,803 
Nonperforming8 67 43 42 21 — — — 181 
Total$2,630 $4,073 $3,148 $2,899 $1,409 $825 $— $— $14,984 
Current period gross write offs$— $3 $11 $— $26 $— $— $— $40 
Other consumer
Payment performance
Performing$9,878 $16,155 $11,077 $5,030 $1,816 $4,181 $— $— $48,137 
Nonperforming2 147 164 116 67 68 — — 564 
Total$9,880 $16,302 $11,241 $5,146 $1,883 $4,249 $— $— $48,701 
Current period gross write offs$— $250 $377 $150 $51 $32 $— $— $860 
The following tables detail the amortized cost of loans receivable, by year of origination (for term loans) and by payment activity within each portfolio segment as of December 31, 2025.
Term Loans Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
1-4 Family Construction
Payment performance
Performing$18,062 $20,514 $3,043 $— $— $40 $— $— $41,659 
Nonperforming— — — — — — — — — 
Total$18,062 $20,514 $3,043 $— $— $40 $— $— $41,659 
Current period gross write offs$— $— $— $— $— $— $— $— $— 
Home equity lines of credit
Payment performance
Performing$73,131 $48,440 $27,018 $31,431 $10,894 $41,169 $10,387 $6,349 $248,819 
Nonperforming— — 47 — — 57 — 1,900 2,004 
Total$73,131 $48,440 $27,065 $31,431 $10,894 $41,226 $10,387 $8,249 $250,823 
Current period gross write offs$— $— $— $— $— $70 $— $— $70 
Residential mortgages secured by first lien
Payment performance
Performing$175,742 $183,335 $192,874 $350,908 $277,658 $567,167 $2,416 $— $1,750,100 
Nonperforming31 616 3,147 2,318 1,477 5,382 — — 12,971 
Total$175,773 $183,951 $196,021 $353,226 $279,135 $572,549 $2,416 $— $1,763,071 
Current period gross write offs$— $— $— $300 $32 $20 $— $— $352 
Residential mortgages secured by junior liens
Payment performance
Performing$27,734 $31,840 $25,138 $26,987 $11,589 $15,252 $1,162 $— $139,702 
Nonperforming501 44 133 31 111 210 58 — 1,088 
Total$28,235 $31,884 $25,271 $27,018 $11,700 $15,462 $1,220 $— $140,790 
Current period gross write offs$260 $— $— $— $— $— $— $— $260 
Other revolving credit plans
Payment performance
Performing$9,962 $4,754 $4,194 $6,642 $2,736 $20,470 $154 $— $48,912 
Nonperforming— 4 2 4 5 26 — — 41 
Total$9,962 $4,758 $4,196 $6,646 $2,741 $20,496 $154 $— $48,953 
Current period gross write offs$— $38 $4 $3 $7 $106 $— $— $158 
Automobile
Payment performance
Performing$5,071 $3,973 $4,780 $2,028 $342 $788 $— $— $16,982 
Nonperforming— 26 11 17 — 1 — — 55 
Total$5,071 $3,999 $4,791 $2,045 $342 $789 $— $— $17,037 
Current period gross write offs$18 $11 $23 $— $— $— $— $— $52 
Other consumer
Payment performance
Performing$21,250 $15,173 $6,872 $2,617 $1,166 $3,662 $— $— $50,740 
Nonperforming147 282 163 60 51 31 — — 734 
Total$21,397 $15,455 $7,035 $2,677 $1,217 $3,693 $— $— $51,474 
Current period gross write offs$141 $1,068 $715 $188 $72 $15 $— $— $2,199 
June 30, 2026December 31, 2025
Credit card
Payment performance
Performing$14,811 $13,234 
Nonperforming26 42 
Total$14,837 $13,276 
Current period gross write offs$160 $502 

Holiday's loan portfolio, included in other consumer loans above, is summarized as follows at June 30, 2026 and December 31, 2025:

June 30, 2026December 31, 2025
Gross other consumer$7,782 $12,746 
Less: other consumer unearned discounts(675)(1,489)
Total other consumer loans, net of unearned discounts$7,107 $11,257