v3.26.1
Loans and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2026
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
The following table presents the composition of the loan portfolio:
(In thousands)June 30, 2026December 31, 2025
Commercial real estate$1,333,050 $1,273,813 
Residential mortgage602,738 599,051 
Commercial and industrial217,151 205,452 
Home equity lines of credit122,164 127,341 
Real estate construction115,091 116,680 
Consumer10,105 10,140 
Gross loans2,400,299 2,332,477 
Unearned income(2,195)(1,963)
Total loans, net of unearned income$2,398,104 $2,330,514 
One of the factors used to monitor the performance and credit quality of the loan portfolio is to analyze the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status:
(In thousands)30–59 Days Past Due60–89 Days
Past Due		≥ 90 Days
Past Due		Total Past
Due		CurrentTotal Loans
Receivable		Loans
Receivable
≥ 90 Days
and Accruing
June 30, 2026
Commercial real estate$506 $216 $63 $785 $1,332,265 $1,333,050 $— 
Residential mortgage20 1,590 4,104 5,714 597,024 602,738 2,613 
Commercial and industrial86 14 — 100 217,051 217,151 — 
Home equity lines of credit604 321 565 1,490 120,674 122,164 565 
Real estate construction— 12 — 12 115,079 115,091 — 
Consumer38 4 7 49 10,056 10,105 7 
Gross loans$1,254 $2,157 $4,739 $8,150 $2,392,149 $2,400,299 $3,185 
December 31, 2025
Commercial real estate$457 $400 $292 $1,149 $1,272,664 $1,273,813 $— 
Residential mortgage4,988 2,098 4,261 11,347 587,704 599,051 2,332 
Commercial and industrial10 332 142 484 204,968 205,452 — 
Home equity lines of credit572 — 514 1,086 126,255 127,341 514 
Real estate construction578 — — 578 116,102 116,680 — 
Consumer23 30 8 61 10,079 10,140 8 
Gross loans$6,628 $2,860 $5,217 $14,705 $2,317,772 $2,332,477 $2,854 
Nonaccrual and Nonperforming Loans
Loans individually evaluated consist of nonaccrual loans, presented in the following table:
June 30, 2026December 31, 2025
(In thousands)With a Related AllowanceWithout a Related AllowanceTotalWith a Related AllowanceWithout a Related AllowanceTotal
Commercial real estate$— $2,749 $2,749 $— $3,644 $3,644 
Residential mortgage233 1,599 1,832 246 1,684 1,930 
Commercial and industrial178 1,871 2,049 698 1,590 2,288 
Home equity lines of credit— 4 4 — 5 5 
 Total$411 $6,223 $6,634 $944 $6,923 $7,867 
During the six months ended June 30, 2026, no material amount of interest income was recognized on nonaccrual loans subsequent to their classification as nonaccrual.
Total nonperforming loans are as follows:
(In thousands)June 30, 2026December 31, 2025
Nonaccrual loans$6,634 $7,867 
Greater than or equal to 90 days past due and accruing1
3,185 2,854 
Total nonperforming loans$9,819 $10,721 
__________________________________________________________________
1 Nonperforming loans include consumer residential mortgages and home equity lines of credit which are well secured by residential real estate properties, all of which are in the process of collection and are not considered nonaccrual.
Collateral-Dependent Loans
A loan is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. If the estimated value of the loan is less than the amortized cost basis, the loan is written down through the ACL as a credit loss. Substantially all of the collateral supporting collateral-dependent loans consists of various types of real estate, including residential properties, commercial properties such as retail centers, office buildings and lodging, agriculture land and vacant land. Changes in the fair value of the collateral for individually evaluated loans are reported as a component of the provision for credit losses in the period of change.
The following table presents the amortized cost basis of individually evaluated loans by type of collateral as of the periods presented:
June 30, 2026December 31, 2025
(In thousands)Business AssetsReal EstateBusiness AssetsReal Estate
Commercial real estate$— $2,749 $— $3,644 
Residential mortgage— 1,832 — 1,930 
Commercial and industrial1,770 279 1,971 317 
Home equity lines of credit— 4 — 5 
Total$1,770 $4,864 $1,971 $5,896 
Loan Modifications
The Corporation evaluates all loan restructurings to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions or combinations of the above. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.
There were no loans modified during the three months ended June 30, 2026 and 2025 and the six months ended June 30, 2025.
The following table presents the amortized cost basis of loans that were experiencing financial difficulty and modified during the six months ended June 30, 2026, by class, type of modification and financial effect. 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:
(Dollars in thousands)Term ExtensionPercent of Class of Financing ReceivableFinancial Effect
Six Months Ended June 30, 2026
Commercial and industrial$136 0.1 %
Extended the term of the loan 12 months.
The following presents the performance of loans modified in the previous twelve months as of June 30, 2026:
(In thousands)Current30-59 Days Past Due60-89 Days Past Due≥ 90 Days Past DueTotal Past Due
Residential mortgage$340 $— $— $92 $92 
Commercial and industrial136 — — — — 
Total$476 $— $— $92 $92 
The following presents the performance of loans modified in the previous twelve months as of June 30, 2025:
(In thousands)Current30-59 Days Past Due60-89 Days Past Due≥ 90 Days Past DueTotal Past Due
Commercial real estate$2,275 $— $— $— $— 
Commercial and industrial1,728 — — — — 
Total$4,003 $— $— $— $— 
As of June 30, 2026, the Corporation had no commitments to lend any additional funds on modified loans. During the six months ended June 30, 2026, one residential mortgage loan in the amount of $92 thousand defaulted on the modified terms of the agreement by failure to make the monthly payments after the deferment period ended. During the three and six months ended June 30, 2025, there were no loans modified due to financial difficulty that defaulted subsequent to the modification. For purposes of this disclosure, a default occurs when, within 12 months of the original modification, either a full or partial charge-off occurs or the loan becomes 90 days or more past due.
Allowance for Credit Losses
The Corporation maintains an ACL at a level determined to be adequate by management to absorb expected credit losses associated with the Corporation’s financial instruments over the life of those instruments as of the balance sheet date. The ACL consists of loans evaluated collectively and individually for expected credit losses. The Corporation considers the performance of the loan portfolio and its impact on the ACL and does not assign internal risk ratings to smaller balance, homogeneous loans such as certain residential mortgage, home equity lines of credit, construction loans to individuals secured by residential real estate and consumer loans. For these loans, the Corporation evaluates credit quality based on the aging status of the loan and designates as performing and nonperforming.
The following summarizes designated internal risk categories by portfolio segment for loans assigned a risk rating and those evaluated based on the performance status:
June 30, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost Basis
(In thousands)20262025202420232022PriorTotal
Internally Risk Rated:
Commercial real estate
Pass$107,781 $81,079 $166,024 $175,309 $189,826 $516,415 $35,491 $1,271,925 
Special Mention7,238 3,114 2,250 2,121 3,007 35,732 1,153 54,615 
Substandard— 151 — — 2,163 4,196 — 6,510 
Total Commercial real estate$115,019 $84,344 $168,274 $177,430 $194,996 $556,343 $36,644 $1,333,050 
Year-to-date gross charge-offs$— $— $— $32 $88 $— $— $120 
Residential mortgage
Pass$16,740 $37,111 $29,584 $30,929 $21,718 $84,018 $1,437 $221,537 
Special Mention341 78 240 3,455 82 2,669 — 6,865 
Substandard— — — 228 1,725 262 — 2,215 
Total Residential mortgage$17,081 $37,189 $29,824 $34,612 $23,525 $86,949 $1,437 $230,617 
Commercial and industrial
Pass$26,924 $17,881 $21,597 $14,439 $18,094 $50,252 $47,054 $196,241 
Special Mention464 264 65 394 4,382 1,490 10,871 17,930 
Substandard— — — 413 725 498 1,344 2,980 
Total Commercial and industrial$27,388 $18,145 $21,662 $15,246 $23,201 $52,240 $59,269 $217,151 
Home equity lines of credit
Pass$— $— $— $479 $80 $169 $9,432 $10,160 
Special Mention— — — — — 93 237 330 
Substandard— — — — — 5 4 9 
Total Home equity lines of credit$— $— $— $479 $80 $267 $9,673 $10,499 
Real estate construction
Pass$10,826 $22,815 $12,417 $10,977 $6,738 $2,638 $10,126 $76,537 
Special Mention— — — — 4,358 — — 4,358 
Total Real estate construction$10,826 $22,815 $12,417 $10,977 $11,096 $2,638 $10,126 $80,895 
Performance Rated:
Residential mortgage
Performing$18,035 $45,991 $30,474 $49,442 $73,250 $147,726 $4,590 $369,508 
Nonperforming— — 146 — 820 1,647 — 2,613 
Total Residential mortgage$18,035 $45,991 $30,620 $49,442 $74,070 $149,373 $4,590 $372,121 
Home equity lines of credit
Performing$— $— $— $11 $27 $1,742 $109,320 $111,100 
Nonperforming— — — — — — 565 565 
Total Home equity lines of credit$— $— $— $11 $27 $1,742 $109,885 $111,665 
Real estate construction
Performing$17,619 $14,832 $497 $161 $351 $735 $1 $34,196 
Total Real estate construction$17,619 $14,832 $497 $161 $351 $735 $1 $34,196 
Consumer
Performing$1,582 $1,467 $997 $610 $860 $669 $3,913 $10,098 
Nonperforming— — — — 3 4 — 7 
Total Consumer$1,582 $1,467 $997 $610 $863 $673 $3,913 $10,105 
Year-to-date gross charge-offs$— $— $8 $5 $— $7 $134 $154 
Total Portfolio loans:
Pass$162,271 $158,886 $229,622 $232,133 $236,456 $653,492 $103,540 $1,776,400 
Special Mention8,043 3,456 2,555 5,970 11,829 39,984 12,261 84,098 
Substandard— 151 — 641 4,613 4,961 1,348 11,714 
Performing37,236 62,290 31,968 50,224 74,488 150,872 117,824 524,902 
Nonperforming— — 146 — 823 1,651 565 3,185 
Total Portfolio loans$207,550 $224,783 $264,291 $288,968 $328,209 $850,960 $235,538 $2,400,299 
Year-to-date gross charge-offs$— $— $8 $37 $88 $7 $134 $274 
December 31, 2025
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost Basis
(In thousands)20252024202320222021PriorTotal
Internally Risk Rated:
Commercial real estate
Pass$83,583 $171,026 $182,864 $199,094 $166,194 $392,397 $25,109 $1,220,267 
Special Mention420 1,807 2,386 4,485 9,367 25,923 1,615 46,003 
Substandard153 105 294 2,492 327 4,172 — 7,543 
Total Commercial real estate$84,156 $172,938 $185,544 $206,071 $175,888 $422,492 $26,724 $1,273,813 
Year-to-date gross charge-offs$— $— $— $— $— $32 $— $32 
Residential mortgage
Pass$37,231 $29,754 $34,884 $23,227 $37,692 $54,050 $953 $217,791 
Special Mention176 247 140 304 140 2,789 — 3,796 
Substandard— — 231 1,816 — 271 — 2,318 
Total Residential mortgage$37,407 $30,001 $35,255 $25,347 $37,832 $57,110 $953 $223,905 
Year-to-date gross charge-offs$19 $— $— $— $— $— $— $19 
Commercial and industrial
Pass$20,925 $22,881 $16,950 $20,101 $30,917 $30,588 $46,211 $188,573 
Special Mention383 208 478 4,888 40 483 7,100 13,580 
Substandard— — 463 774 94 513 1,455 3,299 
Total Commercial and industrial$21,308 $23,089 $17,891 $25,763 $31,051 $31,584 $54,766 $205,452 
Year-to-date gross charge-offs$— $— $— $— $— $14 $— $14 
Home equity lines of credit
Pass$— $— $485 $84 $29 $51 $10,974 $11,623 
Special Mention— — — — 93 97 160 350 
Substandard— — — — — 5 5 10 
Total Home equity lines of credit$— $— $485 $84 $122 $153 $11,139 $11,983 
Real estate construction
Pass$26,653 $19,215 $15,519 $7,513 $1,640 $757 $5,867 $77,164 
Special Mention— — — 4,678 — 365 — 5,043 
Total Real estate construction$26,653 $19,215 $15,519 $12,191 $1,640 $1,122 $5,867 $82,207 
Performance Rated:
Residential mortgage
Performing$40,566 $33,541 $53,484 $79,888 $39,877 $120,302 $5,157 $372,815 
Nonperforming— 231 — 635 — 1,465 — 2,331 
Total Residential mortgage$40,566 $33,772 $53,484 $80,523 $39,877 $121,767 $5,157 $375,146 
Home equity lines of credit
Performing$— $— $13 $29 $— $1,989 $112,813 $114,844 
Nonperforming— — — — — — 514 514 
Total Home equity lines of credit$— $— $13 $29 $— $1,989 $113,327 $115,358 
Real estate construction
Performing$27,937 $4,650 $553 $362 $144 $826 $1 $34,473 
Total Real estate construction$27,937 $4,650 $553 $362 $144 $826 $1 $34,473 
Consumer
Performing$1,641 $1,232 $877 $1,125 $260 $587 $4,410 $10,132 
Nonperforming— — — — — 8 — 8 
Total Consumer$1,641 $1,232 $877 $1,125 $260 $595 $4,410 $10,140 
Year-to-date gross charge-offs$14 $27 $61 $18 $— $8 $230 $358 
Total Portfolio loans
Pass$168,392 $242,876 $250,702 $250,019 $236,472 $477,843 $89,114 $1,715,418 
Special Mention979 2,262 3,004 14,355 9,640 29,657 8,875 68,772 
Substandard153 105 988 5,082 421 4,961 1,460 13,170 
Performing70,144 39,423 54,927 81,404 40,281 123,704 122,381 532,264 
Nonperforming— 231 — 635 — 1,473 514 2,853 
Total Portfolio loans$239,668 $284,897 $309,621 $351,495 $286,814 $637,638 $222,344 $2,332,477 
Year-to-date gross charge-offs$33 $27 $61 $18 $— $54 $230 $423 
The following table presents the activity in the ACL by loan portfolio segment:
(In thousands)Commercial
Real Estate		Residential
Mortgage		Commercial
and
Industrial		Home 
Equity Lines 
of Credit		Real Estate
Construction		ConsumerTotal
Three Months Ended June 30, 2026
Beginning balance - April 1, 2026$13,705 $5,578 $1,648 $552 $1,985 $147 $23,615 
Charge-offs(120)— — — — (72)(192)
Recoveries— — 2 — — 27 29 
Provisions (reversal of)259 (8)253 10 (4)44 554 
Ending balance - June 30, 2026$13,844 $5,570 $1,903 $562 $1,981 $146 $24,006 
Six Months Ended June 30, 2026
Beginning balance - January 1, 2026$13,259 $5,386 $1,800 $482 $2,588 $157 $23,672 
Charge-offs(120)— — — — (154)(274)
Recoveries— 4 71 — — 55 130 
Provisions (reversal of)705 180 32 80 (607)88 478 
Ending balance - June 30, 2026$13,844 $5,570 $1,903 $562 $1,981 $146 $24,006 
Three Months Ended June 30, 2025
Beginning balance - April 1, 2025$13,549 $5,128 $2,228 $487 $3,138 $116 $24,646 
Charge-offs— — — — — (86)(86)
Recoveries— — 7 — — 14 21 
(Reversal of) provisions(512)76 2 (37)118 125 (228)
Ending balance - June 30, 2025$13,037 $5,204 $2,237 $450 $3,256 $169 $24,353 
Six Months Ended June 30, 2025
Beginning balance - January 1, 2025$10,578 $2,976 $1,416 $294 $1,918 $98 $17,280 
Allowance established for acquired PCD loans798 140 194 13 169 150 1,464 
Charge-offs— — (14)— — (157)(171)
Recoveries— — 10 — — 30 40 
Provisions1,661 2,088 631 143 1,169 48 5,740 
Ending balance - June 30, 2025$13,037 $5,204 $2,237 $450 $3,256 $169 $24,353