v3.26.1
ALLOWANCE FOR CREDIT LOSSES (Tables)
 6 Months Ended
Jun. 30, 2026
Credit Loss [Abstract]  
Schedule of Loan Balances by Origination Year and Assigned Risk Rating
The following table presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of June 30:
Risk Rating
(Dollars in Thousands)202620252024202320222021 and PriorRevolvingTotal Portfolio Loans
Commercial Real Estate
Pass$144,769 $319,675 $244,322 $301,101 $408,250 $674,954 $28,181$2,121,252 
Special Mention— — — — — 548 —548 
Substandard— — 7,552 — 13,974 36 —21,562 
Total Commercial Real Estate$144,769 $319,675 $251,874 $301,101 $422,224 $675,538 $28,181$2,143,362 
YTD Gross Charge-offs— — — — — — —— 
Commercial and Industrial
Pass$34,206 $21,193 $785 $14,993 $18,513 $104,510 $54,679$248,879 
Special Mention— 7 — — — — —7 
Substandard— — — — 12 15 75102 
Doubtful— — — 12,944 — — 50013,444 
Total Commercial and Industrial$34,206 $21,200 $785 $27,937 $18,525 $104,525 $55,254$262,432 
YTD Gross Charge-offs— — — — — — —— 
Residential Mortgages
Pass$53,029 $92,341 $21,596 $40,996 $246,166 $291,719 $65,506$811,353 
Special Mention— — — — — 87 —87 
Substandard— — — — 998 1,239 7062,943 
Total Residential Mortgages$53,029 $92,341 $21,596 $40,996 $247,164 $293,045 $66,212$814,383 
YTD Gross Charge-offs— — — — — — —— 
Other Consumer
Pass$7,838 $10,118 $4,122 $1,488 $743 $773 $—$25,082 
Special Mention— — — — — — —— 
Substandard29 — 36 — 7 — —72 
Total Other Consumer$7,867 $10,118 $4,158 $1,488 $750 $773 $—$25,154 
YTD Gross Charge-offs64 67 53 12 77 26 —299 
Construction
Pass$37,753 $126,564 $187,533 $65,011 $31,554 $7,578 $14,898$470,891 
Special Mention— — 661 — — 35 —696 
Substandard— — — 17,642 — 34 —17,676 
Total Construction$37,753 $126,564 $188,194 $82,653 $31,554 $7,647 $14,898$489,263 
YTD Gross Charge-offs— — — — — — —— 
Other
Pass$— $— $— $— $— $— $—$— 
Special Mention— — — — — — —— 
Substandard— — — — — — —— 
Total Other Loans$— $— $— $— $— $— $—$— 
YTD Gross Charge-offs— — — — — — —— 
Total Portfolio Loans
Pass$277,595 $569,891 $458,358 $423,589 $705,226 $1,079,534 $163,264$3,677,457 
Special Mention— 7 661 — — 670 —1,338 
Substandard29 — 7,588 17,642 14,991 1,324 78142,355 
Doubtful— — — 12,944 — — 50013,444 
Total Portfolio Loans$277,624 $569,898 $466,607 $454,175 $720,217 $1,081,528 $164,545$3,734,594 
Current YTD Period:
YTD Gross Charge-offs$64 $67 $53 $12 $77 $26 $— $299 
The following table presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of December 31:
Risk Rating
(Dollars in Thousands)202520242023202220212020 and PriorRevolvingTotal Portfolio Loans
Commercial Real Estate
Pass$314,624 $189,311 $335,491 $424,445 $232,130 $536,023 $47,555$2,079,579 
Special Mention10,829 — — — — 45 —10,874 
Substandard— 9,494 — 14,321 — 46 —23,861 
Total Commercial Real Estate$325,453 $198,805 $335,491 $438,766 $232,130 $536,114 $47,555$2,114,314 
YTD Gross Charge-offs— — — — — — —— 
Commercial and Industrial
Pass$24,231 $786 $28,939 $19,406 $9,409 $106,348 $41,780$230,899 
Special Mention9 — — — — — —9 
Substandard— — — 13 915 21 641,013 
Total Commercial and Industrial$24,240 $786 $28,939 $19,419 $10,324 $106,369 $41,844$231,921 
YTD Gross Charge-offs— — — 7 — — —7 
Residential Mortgages
Pass$101,104 $20,369 $56,383 $262,355 $148,230 $163,744 $64,130$816,315 
Special Mention— — — — — 89 —89 
Substandard— — — 1,014 826 3,289 6085,737 
Total Residential Mortgages$101,104 $20,369 $56,383 $263,369 $149,056 $167,122 $64,738$822,141 
YTD Gross Charge-offs— — — — — — —— 
Other Consumer
Pass$17,463 $6,096 $2,380 $1,142 $244 $1,066 $—$28,391 
Special Mention— — — — — — —— 
Substandard2 18 — 1 4 — —25 
Total Other Consumer$17,465 $6,114 $2,380 $1,143 $248 $1,066 $—$28,416 
YTD Gross Charge-offs202 181 71 334 80 11 —879 
Construction
Pass$90,343 $192,733 $103,325 $47,124 $2,015 $7,768 $15,763$459,071 
Special Mention— 660 — — — 40 —700 
Substandard— — 403 5,402 — 37 —5,842 
Total Construction$90,343 $193,393 $103,728 $52,526 $2,015 $7,845 $15,763$465,613 
YTD Gross Charge-offs— — — 1 — — —1 
Other
Pass$— $— $— $— $— $3,135 $—$3,135 
Special Mention— — — — — — —— 
Substandard214,020 — — — — — —214,020 
Total Other Loans$214,020 $— $— $— $— $3,135 $—$217,155 
YTD Gross Charge-offs— — — — — — —— 
Total Portfolio Loans
Pass$547,765 $409,295 $526,518 $754,472 $392,028 $818,084 $169,228$3,617,390 
Special Mention10,838 660 — — — 174 —11,672 
Substandard214,022 9,512 403 20,751 1,745 3,393 672250,498 
Total Portfolio Loans$772,625 $419,467 $526,921 $775,223 $393,773 $821,651 $169,900$3,879,560 
Current YTD Period:
YTD Gross Charge-offs$202 $181 $71 $342 $80 $11 $— $887 
The following table presents loan balances by year of origination and performing and nonperforming status for our portfolio segments as of June 30:
(Dollars in Thousands)202620252024202320222021 and PriorRevolvingTotal Portfolio Loans
Commercial Real Estate
Performing$144,769$319,675$244,322$301,101$408,250$675,502$28,181$2,121,800
Nonperforming——7,552—13,97436—21,562
Total Commercial Real Estate$144,769$319,675$251,874$301,101$422,224$675,538$28,181$2,143,362
Commercial and Industrial
Performing$34,206$21,200$785$14,993$18,513$104,510$54,679$248,886
Nonperforming———12,944121557513,546
Total Commercial and Industrial$34,206$21,200$785$27,937$18,525$104,525$55,254$262,432
Residential Mortgages
Performing$53,029$92,341$21,596$40,996$247,164$291,806$65,506$812,438
Nonperforming—————1,2397061,945
Total Residential Mortgages$53,029$92,341$21,596$40,996$247,164$293,045$66,212$814,383
Other Consumer
Performing$7,838$10,118$4,122$1,488$743$773$—$25,082
Nonperforming29—36—7——72
Total Other Consumer$7,867$10,118$4,158$1,488$750$773$—$25,154
Construction
Performing$37,753$126,564$188,194$82,251$31,554$7,613$14,898$488,827
Nonperforming———402—34—436
Total Construction$37,753$126,564$188,194$82,653$31,554$7,647$14,898$489,263
Other
Performing$—$—$—$—$—$—$—$—
Nonperforming————————
Total Other Loans$—$—$—$—$—$—$—$—
Total Portfolio Loans
Performing$277,595$569,898$459,019$440,829$706,224$1,080,204$163,264$3,697,033
Nonperforming29—7,58813,34613,9931,3241,28137,561
Total Portfolio Loans$277,624$569,898$466,607$454,175$720,217$1,081,528$164,545$3,734,594
The following table presents loan balances by year of origination and performing and nonperforming status for our portfolio segments as of December 31:
(Dollars in Thousands)202520242023202220212020 and PriorRevolvingTotal Portfolio Loans
Commercial Real Estate
Performing$325,453$189,311$335,491$424,445$232,130$536,068$47,555$2,090,453
Nonperforming—9,494—14,321—46—23,861
Total Commercial Real Estate$325,453$198,805$335,491$438,766$232,130$536,114$47,555$2,114,314
Commercial and Industrial
Performing$24,240$786$28,939$19,406$9,409$106,348$41,780$230,908
Nonperforming———1391521641,013
Total Commercial and Industrial$24,240$786$28,939$19,419$10,324$106,369$41,844$231,921
Residential Mortgages
Performing$101,104$20,369$56,383$263,369$148,230$163,833$64,230$817,518
Nonperforming————8263,2895084,623
Total Residential Mortgages$101,104$20,369$56,383$263,369$149,056$167,122$64,738$822,141
Other Consumer
Performing$17,463$6,096$2,380$1,142$244$1,066$—$28,391
Nonperforming218—14——25
Total Other Consumer$17,465$6,114$2,380$1,143$248$1,066$—$28,416
Construction
Performing$90,343$193,393$103,325$52,526$2,015$7,808$15,763$465,173
Nonperforming——403——37—440
Total Construction$90,343$193,393$103,728$52,526$2,015$7,845$15,763$465,613
Other
Performing$—$—$—$—$—$3,135$—$3,135
Nonperforming214,020——————214,020
Total Other Loans$214,020$—$—$—$—$3,135$—$217,155
Total Portfolio Loans
Performing$558,603$409,955$526,518$760,888$392,028$818,258$169,328$3,635,578
Nonperforming214,0229,51240314,3351,7453,393572243,982
Total Portfolio Loans$772,625$419,467$526,921$775,223$393,773$821,651$169,900$3,879,560
Schedule of Loans Past Due
The following tables include an aging analysis of the recorded investment of past-due portfolio loans at the dates presented:
June 30, 2026
(Dollars in Thousands)Current LoansLoans 30-59
Days Past Due		Loans 60-89
Days Past Due		Total 30-89 Days
Past Due		Nonaccrual LoansTotal Portfolio Loans
Commercial Real Estate$2,121,800 $— $— $— $21,562 $2,143,362 
Commercial & Industrial248,796 90 — 90 13,546 262,432 
Residential Mortgages810,101 2,337 — 2,337 1,945 814,383 
Other Consumer24,934 86 62 148 72 25,154 
Construction488,791 36 — 36 436 489,263 
Other— — — — — — 
Total$3,694,422 $2,549 $62 $2,611 $37,561 $3,734,594 

December 31, 2025
(Dollars in Thousands)Current LoansLoans 30-59
Days Past Due		Loans 60-89
Days Past Due		Total 30-89 Days
Past Due		Nonaccrual LoansTotal Portfolio Loans
Commercial Real Estate$2,090,450 $3 $— $3 $23,861 $2,114,314 
Commercial & Industrial230,749 159 — 159 1,013 231,921 
Residential Mortgages815,619 1,899 — 1,899 4,623 822,141 
Other Consumer28,124 159 108 267 25 28,416 
Construction464,265 40 868 908 440 465,613 
Other3,135 — — — 214,020 217,155 
Total$3,632,342 $2,260 $976 $3,236 $243,982 $3,879,560 
Schedule of Nonaccrual Loans
The following table presents loans on nonaccrual status by portfolio segment of loan for the dates presented. There were no loans for the dates presented that were past due more than 90 days and still accruing.
June 30, 2026December 31, 2025
(Dollars in Thousands)
Nonaccrual without an Allowance for Credit Losses		Nonaccrual with an Allowance for Credit LossesTotal Nonaccrual
Loans		Nonaccrual without an Allowance for Credit LossesNonaccrual with an Allowance for Credit LossesTotal Nonaccrual
Loans
Commercial Real Estate$— $21,562 $21,562 $— $23,861 $23,861 
Commercial and Industrial— 13,546 13,546 — 1,013 1,013 
Residential Mortgages— 1,945 1,945 2,018 2,605 4,623 
Other Consumer— 72 72 — 25 25 
Construction— 436 436 — 440 440 
Other— — — — 214,020 214,020 
Total Portfolio Loans$— $37,561 $37,561 $2,018 $241,964 $243,982 
Schedule of Collateral Dependent Loans
The following tables present changes in the fair value of the types of collateral and DCF modeling for IELs in the (recovery) provision for credit losses on loans in the period of change.
June 30, 2026
Collateral TypeBlanket UCC Lien on Business AssetsSingle FamilyWarehouseOffice BuildingMultifamilyTotal
(Dollars in Thousands)Fair Value - Collateral
Commercial Real Estate$— $— $7,552 $13,973 $— $21,525 
Commercial and Industrial13,445 — — — — 13,445 
Construction— 661 — — 17,239 17,900 
Total$13,445 $661 $7,552 $13,973 $17,239 $52,870 

December 31, 2025
Collateral TypeEquipmentSingle FamilyWarehouseOffice BuildingDiscounted Cash FlowTotal
(Dollars in Thousands)Fair Value - Collateral
Commercial Real Estate$— $— $9,494 $14,321 $— $23,815 
Commercial and Industrial915 — — — — 915 
Residential Mortgage— 2,018 — — — 2,018 
Construction— 661 — — — 661 
Other— — — — 214,020 214,020 
Total$915 $2,679 $9,494 $14,321 $214,020 $241,429 
Schedule of Activity in Allowance for Credit Losses
The following tables present activity in the ACL for the periods presented:
Three Months Ended June 30, 2026
(Dollars in Thousands)Commercial Real EstateCommercial & IndustrialResidential MortgagesOther ConsumerConstructionOtherTotal
Allowance for Credit Losses on Loans:
Balance, Beginning of Period$22,171 $2,538 $11,761 $588 $15,445 $— $52,503 
(Recovery) Provision for Credit Losses on Loans(286)3,352 (44)85 (1,097)— 2,010 
Charge-offs— — — (161)— — (161)
Recoveries248 — 2 57 511 — 818 
Net Recoveries / (Charge-offs)248 — 2 (104)511 — 657 
Balance, End of Period$22,133 $5,890 $11,719 $569 $14,859 $— $55,170 
Six Months Ended June 30, 2026
(Dollars in Thousands)Commercial Real EstateCommercial & IndustrialResidential MortgagesOther ConsumerConstructionOtherTotal
Allowance for Credit Losses on Loans:
Balance, Beginning of Period$22,526 $2,790 $12,449 $638 $15,020 $18,068 $71,491 
(Recovery) Provision for Credit Losses on Loans(641)3,100 —(734)108 (672)(33,068)(31,907)
Charge-offs— — — (299)— — (299)
Recoveries248 — 4 122 511 15,000 15,885 
Net Recoveries / (Charge-offs)248 — 4 (177)511 15,000 15,586 
Balance, End of Period$22,133 $5,890 $11,719 $569 $14,859 $— $55,170 
Three Months Ended June 30, 2025
(Dollars in Thousands)Commercial Real EstateCommercial & IndustrialResidential MortgagesOther ConsumerConstructionOtherTotal
Allowance for Credit Losses on Loans:
Balance, Beginning of Period$20,144 $2,675 $10,843 $693 $12,049 $27,114 $73,518 
Provision (Recovery) for Credit Losses on Loans579 45 298 144 (285)(3,111)(2,330)
Charge-offs— — — (288)— — (288)
Recoveries— 2 2 119 — — 123 
Net Recoveries / (Charge-offs)— 2 2 (169)— — (165)
Balance, End of Period$20,723 $2,722 $11,143 $668 $11,764 $24,003 $71,023 
Six Months Ended June 30, 2025
(Dollars in Thousands)Commercial Real EstateCommercial & IndustrialResidential MortgagesOther ConsumerConstructionOtherTotal
Allowance for Credit Losses on Loans:
Balance, Beginning of Period$20,146 $2,791 $10,389 $682 $11,297 $30,295 $75,600 
Provision (Recovery) for Credit Losses on Loans577 (67)744 216 467 (6,292)(4,355)
Charge-offs— (7)— (459)(1)— (467)
Recoveries— 5 10 229 1 — 245 
Net (Charge-offs) / Recoveries— (2)10 (230)— — (222)
Balance, End of Period$20,723 $—$2,722 $11,143 $668 $11,764 $24,003 $71,023