v3.26.1
Loans and Allowance for Credit Losses on Loans (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Loans by Class
The following table presents the amortized cost of loans by portfolio class as of June 30, 2026 and December 31, 2025.

(in thousands)June 30, 2026December 31, 2025
Commercial and industrial$162,434 $159,898 
Real estate:
  Commercial owner-occupied288,744 310,219 
  Commercial non-owner occupied1,373,990 1,366,251 
  Construction16,317 15,101 
  Home equity101,404 99,222 
  Other residential100,710 110,614 
Installment and other consumer loans57,377 59,548 
Total loans, at amortized cost 1
2,100,976 2,120,853 
Allowance for credit losses on loans(22,464)(30,089)
Total loans, net of allowance for credit losses on loans$2,078,512 $2,090,764 
1 Amortized cost includes net deferred loan origination costs of $2.0 million and $2.2 million at June 30, 2026 and December 31, 2025, respectively. Amounts are also net of unrecognized purchase discounts of $977 thousand and $952 thousand at June 30, 2026 and December 31, 2025, respectively. Amortized cost excludes accrued interest, which totaled $6.9 million and $6.8 million at June 30, 2026 and December 31, 2025, respectively, and is included in interest receivable and other assets in the consolidated statements of condition.
Schedule of Loans by Risk Grade and Origination Year
The following tables present the loan portfolio by loan portfolio class, origination/renewal year and internal risk rating as of June 30, 2026 and December 31, 2025. The current year vintage table reflects year-to-date gross charge-offs by loan portfolio class and year of origination. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to perm loans, are presented by year of origination.

(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
June 30, 202620262025202420232022PriorTotal
Commercial and industrial:
Pass and Watch$8,418 $31,621 $5,595 $13,101 $5,278 $20,396 $75,184 $159,593 
Special Mention— — 1,870 — — 41 560 2,471 
Substandard— 5 365 — — — — 370 
Total commercial and industrial$8,418 $31,626 $7,830 $13,101 $5,278 $20,437 $75,744 $162,434 
Gross current period charge-offs$— $(47)$— $— $— $— $(54)$(101)
Commercial real estate, owner-occupied:
Pass and Watch$10,772 $24,790 $11,961 $10,700 $31,902 $159,940 $177 $250,242 
Special Mention101 290 — — 3,986 30,091 34,468 
Substandard— — — — 3,059 975 — 4,034 
Total commercial real estate, owner-occupied$10,873 $25,080 $11,961 $10,700 $38,947 $191,006 $177 $288,744 
Commercial real estate, non-owner occupied:
Pass and Watch$107,307 $234,437 $90,935 $48,869 $148,068 $650,567 $14,839 $1,295,022 
Special Mention3,763 18,300 $— — 2,163 39,762 — 63,988 
Substandard— 2,587 — 790 — 11,603 — 14,980 
Total commercial real estate, non-owner occupied$111,070 $255,324 $90,935 $49,659 $150,231 $701,932 $14,839 $1,373,990 
Gross current period charge-offs$— $— $— $— $— $(7,192)$— $(7,192)
Construction:
Pass and Watch$9,391 $6,753 $— $— $— $— $173 $16,317 
Total construction$9,391 $6,753 $— $— $— $— $173 $16,317 
Home equity:
Pass and Watch$76 $154 $1 $12 $12 $548 $100,321 $101,124 
Substandard— — — — — 156 124 280 
Total home equity$76 $154 $1 $12 $12 $704 $100,445 $101,404 
Other residential:
Pass and Watch$4,468 $2,826 $8,802 $14,873 $15,705 $53,969 $— $100,643 
Substandard— — — 67 — — — 67 
Total other residential$4,468 $2,826 $8,802 $14,940 $15,705 $53,969 $— $100,710 
Installment and other consumer:
Pass and Watch$6,373 $8,813 $11,968 $8,599 $6,259 $13,621 $1,598 $57,231 
Substandard— — 95 — 23 28 — 146 
Total installment and other consumer$6,373 $8,813 $12,063 $8,599 $6,282 $13,649 $1,598 $57,377 
Gross current period charge-offs$— $— $— $(6)$— $— $(6)$(12)
Total loans:
Pass and Watch$146,805 $309,394 $129,263 $96,154 $207,224 $899,041 $192,292 $1,980,173 
Total Special Mention$3,864 $18,590 $1,870 $— $6,149 $69,894 $560 $100,926 
Total Substandard$— $2,592 $460 $857 $3,082 $12,762 $124 $19,877 
Totals$150,669 $330,576 $131,593 $97,011 $216,455 $981,697 $192,976 $2,100,976 
Total gross current period charge-offs$— $(47)$— $(6)$— $(7,192)$(60)$(7,305)

(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
December 31, 202520252024202320222021PriorTotal
Commercial and industrial:
Pass and Watch$32,723 $5,735 $15,069 $6,002 $632 $22,238 $62,490 $144,889 
Special Mention1,002 2,392 — — — 102 10,925 14,421 
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
December 31, 202520252024202320222021PriorTotal
Substandard19 520 — — — — 49 588 
Total commercial and industrial$33,744 $8,647 $15,069 $6,002 $632 $22,340 $73,464 $159,898 
Commercial real estate, owner-occupied:
Pass and Watch$25,844 $12,158 $11,858 $35,709 $42,288 $132,766 $284 $260,907 
Special Mention7,275 — 367 4,092 18,153 14,461 — 44,348 
Substandard1,513 — — 3,137 — 314 — 4,964 
Total commercial real estate, owner-occupied$34,632 $12,158 $12,225 $42,938 $60,441 $147,541 $284 $310,219 
Commercial real estate, non-owner occupied:
Pass and Watch$238,253 $99,947 $53,969 $155,608 $189,703 $531,672 $12,022 $1,281,174 
Special Mention21,857 — — — — 37,399 — 59,256 
Substandard— — — — — 25,821 — 25,821 
Total commercial real estate, non-owner occupied$260,110 $99,947 $53,969 $155,608 $189,703 $594,892 $12,022 $1,366,251 
Construction:
Pass and Watch$4,602 $10,499 $— $— $— $— $— $15,101 
Total construction$4,602 $10,499 $— $— $— $— $— $15,101 
Home equity:
Pass and Watch$97 $44 $13 $— $— $630 $97,976 $98,760 
Substandard— — — — — 161 301 462 
Total home equity$97 $44 $13 $— $— $791 $98,277 $99,222 
Other residential:
Pass and Watch$2,971 $15,899 $15,479 $17,745 $9,280 $49,168 $— $110,542 
Substandard— — 72 — — — — 72 
Total other residential$2,971 $15,899 $15,551 $17,745 $9,280 $49,168 $— $110,614 
Installment and other consumer:
Pass and Watch$10,515 $13,253 $9,858 $8,057 $6,553 $9,447 $1,661 $59,344 
Substandard— — 176 — — 28 — 204 
Total installment and other consumer$10,515 $13,253 $10,034 $8,057 $6,553 $9,475 $1,661 $59,548 
Total loans:
Pass and Watch$315,005 $157,535 $106,246 $223,121 $248,456 $745,921 $174,433 $1,970,717 
Total Special Mention$30,134 $2,392 $367 $4,092 $18,153 $51,962 $10,925 $118,025 
Total Substandard$1,532 $520 $248 $3,137 $— $26,324 $350 $32,111 
Totals$346,671 $160,447 $106,861 $230,350 $266,609 $824,207 $185,708 $2,120,853 
Schedule of Loans Outstanding and Aging Analysis
The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of June 30, 2026 and December 31, 2025.
Loan Aging Analysis by Portfolio Class
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerTotal
June 30, 2026
 30-59 days past due$54 $— $509 $— $741 $— $290 $1,594 
 60-89 days past due13 — — — 397 — — 410 
 90 days or more past due 1
297 — 8,118 — — 67 44 8,526 
Total past due364 — 8,627 — 1,138 67 334 10,530 
Current162,070 288,744 1,365,363 16,317 100,266 100,643 57,043 2,090,446 
Total loans 1
$162,434 $288,744 $1,373,990 $16,317 $101,404 $100,710 $57,377 $2,100,976 
Non-accrual loans 2
$5 $— $8,118 $— $219 $67 $44 $8,453 
Non-accrual loans with no allowance$— $— $8,118 $— $219 $— $28 $8,365 
December 31, 2025
 30-59 days past due$76 $— $— $— $381 $— $1,070 $1,527 
 60-89 days past due66 — 1,250 — — — — 1,316 
 90 days or more past due 1
19 77 8,118 — — 72 204 8,490 
Total past due161 77 9,368 — 381 72 1,274 11,333 
Current159,737 310,142 1,356,882 15,102 98,841 110,542 58,274 2,109,520 
Total loans 1
$159,898 $310,219 $1,366,250 $15,102 $99,222 $110,614 $59,548 $2,120,853 
Non-accrual loans 2
$524 $314 $25,387 $— $401 $72 $204 $26,902 
Non-accrual loans with no allowance$— $314 $8,822 $— $401 $— $204 $9,741 
1 There was one commercial and industrial loan over 90 days past due and accruing interest as of June 30, 2026 that was approved for term-out but subsequently delayed. However, the loan remains in the process of collection and is expected to be restored to a current payment schedule in the near future. There were no non-performing loans over 90 days past due and accruing interest as of December 31, 2025.
2 None of the non-accrual loans as of June 30, 2026 or December 31, 2025 were earning interest on a cash or accrual basis. We reversed $1.5 thousand in accrued interest income for loans that were placed on non-accrual status during the three and six months ended June 30, 2026, respectively. We reversed accrued interest income of $11 thousand and $44 thousand for loans that were placed on non-accrual status during the three and six months ended June 30, 2025, respectively.
Schedule of Collateral Dependent Non-Accrual Loans
The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which were all on non-accrual status, by portfolio class at June 30, 2026 and December 31, 2025.
Amortized Cost by Collateral Type
(in thousands)Commercial Real EstateResidential Real EstateOther
Total 1
Allowance for Credit Losses
June 30, 2026
Commercial real estate, non-owner occupied$8,118 $— $— $8,118 $— 
Home equity— 219 — 219 — 
Other residential— 67 — 67 15 
Installment and other consumer— — 44 44 2 
Total$8,118 $286 $44 $8,448 $17 
December 31, 2025
Commercial real estate, owner-occupied$314 $— $— $314 $— 
Commercial real estate, non-owner occupied25,387 — — 25,387 7,226 
Home equity— 401 — 401 — 
Other residential— 72 — 72 18 
Total$25,701 $473 $— $26,174 $7,244 
1 There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at June 30, 2026 and December 31, 2025. The weighted average loan-to-value of real estate secured collateral dependent loans was approximately 66% at June 30, 2026 and 106% at December 31, 2025.
Schedule of Financing Receivable, Modified Loans The following table summarizes the amortized cost of loans as of June 30, 2025 that were modified during the three and six months ended June 30, 2025, by portfolio class and type of modification granted.
(in thousands)Term ExtensionTotal ModificationsPercent of Portfolio Class Total
Three months ended June 30, 2025
Commercial non-owner occupied$3,488 $3,488 0.3 %
Total$3,488 $3,488 
Six months ended June 30, 2025
Commercial non-owner occupied$3,488 $3,488 0.3 %
Total$3,488 $3,488 
The following table summarizes the financial effect of loan modifications presented in the tables above during the three and six months ended June 30, 2025 by portfolio class.

Weighted-Average Term Extension (in years)
Three months ended June 30, 2025
Commercial non-owner occupied1.2
Six months ended June 30, 2025
Commercial non-owner occupied1.2
The following table summarizes the amortized cost and payment status of loans as of June 30, 2025 that were modified during the three and six months ended June 30, 2025 by portfolio class.
(in thousands)Current30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueTotalNon-Accrual
Three months ended June 30, 2025
Commercial non-owner occupied$3,488 $— $— $— $3,488 $717 
Total$3,488 $— $— $— $3,488 $717 
Six months ended June 30, 2025
Commercial non-owner occupied$3,488 $— $— $— $3,488 $717 
Total$3,488 $— $— $— $3,488 $717 
Schedule of Allowance for Credit Losses on Financing Receivables
The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of June 30, 2026 and December 31, 2025.

Allocation of the Allowance for Credit Losses on Loans
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
June 30, 2026
Modeled expected credit losses$1,526 $1,453 $8,168 $50 $709 $885 $652 $— $13,443 
Qualitative adjustments543 796 5,946 193 75 2 104 1,340 8,999 
Specific allocations5 — — — — 15 2 — 22 
Total$2,074 $2,249 $14,114 $243 $784 $902 $758 $1,340 $22,464 
December 31, 2025
Modeled expected credit losses$1,512 $1,553 $8,449 $38 $736 $1,059 $697 $— $14,044 
Qualitative adjustments522 901 5,802 161 67 2 106 1,185 8,746 
Specific allocations55 — 7,226 — — 18 — — 7,299 
Total$2,089 $2,454 $21,477 $199 $803 $1,079 $803 $1,185 $30,089 
The following table discloses activity in the allowance for credit losses on loans for the periods presented.
Allowance for Credit Losses on Loans Rollforward
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
Three months ended June 30, 2026
Beginning balance$2,014 $2,452 $14,327 $204 $764 $974 $745 $1,343 $22,823 
Provision (Reversal)90 (203)(213)39 20 (72)22 (3)(320)
(Charge-offs)(30)— — — — — (9)— (39)
Recoveries— — — — — — — — — 
Ending balance$2,074 $2,249 $14,114 $243 $784 $902 $758 $1,340 $22,464 
Three months ended June 30, 2025
Beginning balance$1,508 $2,319 $21,761 $416 $698 $1,074 $884 $1,246 $29,906 
Provision (Reversal)152 83 (245)(32)85 36 (13)(66)— 
(Charge-offs)(52)— — — — — — — (52)
Recoveries— — — — — — — — — 
Ending balance$1,608 $2,402 $21,516 $384 $783 $1,110 $871 $1,180 $29,854 
Six months ended June 30, 2026
Beginning balance$2,089 $2,454 $21,477 $199 $803 $1,079 $803 $1,185 $30,089 
Provision (Reversal)86 (205)(171)44 (19)(177)(33)155 (320)
(Charge-offs)(101)— (7,192)— — — (12)— (7,305)
Recoveries— — — — — — — — — 
Ending balance$2,074 $2,249 $14,114 $243 $784 $902 $758 $1,340 $22,464 
Six months ended June 30, 2025
Beginning balance$1,576 $2,361 $22,093 $638 $684 $1,141 $908 $1,255 $30,656 
Provision (Reversal)84 41 232 (254)99 (31)(21)(75)75 
(Charge-offs)(52)— (809)— — — (16)— (877)
Recoveries— — — — — — — — — 
Ending balance$1,608 $2,402 $21,516 $384 $783 $1,110 $871 $1,180 $29,854