v3.26.1
Loans and Allowance for Credit Losses - Loans
 6 Months Ended
Jun. 30, 2026
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans and Allowance for Credit Losses - Loans Loans and Allowance for Credit Losses - Loans
Loans, net of unearned income, are summarized as follows by portfolio segment:
(In thousands)June 30, 2026December 31, 2025
Commercial real estate
CRE Nonowner Occupied$1,599,855 $1,364,040 
CRE Owner Occupied830,915 718,864 
Multifamily446,216 419,267 
Farmland240,517 227,816 
Total Commercial real estate3,117,503 2,729,987 
Commercial and industrial
728,431 720,031 
Construction
Residential Construction87,934 85,299 
Other Construction330,502 310,390 
Total Construction418,436 395,689 
Residential mortgage
1-4 Family 1st Lien574,948 417,421 
1-4 Family Rental470,501 410,965 
HELOC and Junior Liens297,241 178,116 
Total Residential Mortgage1,342,690 1,006,502 
Consumer10,109 10,629 
Total loans$5,617,169 $4,862,838 

Total loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs. Net deferred loan fees were $3.1 million and $2.8 million as of June 30, 2026 and December 31, 2025, respectively.
Accrued interest receivable is not included in the amortized cost basis of Mid Penn's loans. Accrued interest receivable for loans totaled $28.5 million and $25.7 million as of June 30, 2026 and December 31, 2025, respectively, with no related ACL and was reported in other assets on the accompanying Consolidated Balance Sheet.
Past Due and Nonaccrual Loans
The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of June 30, 2026 and December 31, 2025, are summarized as follows:
(In thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable
> 90 Days and
Accruing
June 30, 2026
Commercial real estate
CRE Nonowner Occupied$199 $1,767 $3,947 $5,913 $1,593,942 $1,599,855 $— 
CRE Owner Occupied2,650 32 3,775 6,457 824,458 830,915 — 
Multifamily— — 287 287 445,929 446,216 — 
Farmland— 79 1,459 1,538 238,979 240,517 — 
Total Commercial real estate2,849 1,878 9,468 14,195 3,103,308 3,117,503 — 
Commercial and industrial3,157 419 12,404 15,980 712,451 728,431 — 
Construction
Residential Construction340 — — 340 87,594 87,934 — 
Other Construction1,108 — — 1,108 329,394 330,502 — 
Total Construction1,448 — — 1,448 416,988 418,436 — 
Residential mortgage
1-4 Family 1st Lien778 381 1,381 2,540 572,408 574,948 213 
1-4 Family Rental977 — 273 1,250 469,251 470,501 — 
HELOC and Junior Liens2,085 793 1,609 4,487 292,754 297,241 — 
Total Residential Mortgage3,840 1,174 3,263 8,277 1,334,413 1,342,690 213 
Consumer5 3 12 20 10,089 10,109 — 
Total$11,299 $3,474 $25,147 $39,920 $5,577,249 $5,617,169 $213 

(In thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable
> 90 Days and
Accruing
December 31, 2025
Commercial real estate
CRE Nonowner Occupied$278 $— $5,144 $5,422 $1,358,618 $1,364,040 $— 
CRE Owner Occupied2,022 58 901 2,981 715,883 718,864 — 
Multifamily— 196 — 196 419,071 419,267 — 
Farmland— 1,581 46 1,627 226,189 227,816 — 
Total Commercial real estate2,300 1,835 6,091 10,226 2,719,761 2,729,987 — 
Commercial and industrial3,740 1,006 6,804 11,550 708,481 720,031 — 
Construction
Residential Construction— — — — 85,299 85,299 — 
Other Construction230 — — 230 310,160 310,390 — 
Total Construction230 — — 230 395,459 395,689 — 
Residential mortgage
1-4 Family 1st Lien4,192 165 484 4,841 412,580 417,421 — 
1-4 Family Rental812 1,054 1,047 2,913 408,052 410,965 — 
HELOC and Junior Liens1,474 486 1,815 3,775 174,341 178,116 — 
Total Residential Mortgage6,478 1,705 3,346 11,529 994,973 1,006,502 — 
Consumer7 14 — 21 10,608 10,629 — 
Total$12,755 $4,560 $16,241 $33,556 $4,829,282 $4,862,838 $— 
Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due. Nonaccrual loans totaled $213 thousand, and there were no loans greater than 90 days past due and still accruing as of June 30, 2026 and December 31, 2025, respectively.
Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of June 30, 2026 and December 31, 2025 are summarized as follows:
June 30, 2026December 31, 2025
(In thousands)With a Related AllowanceWithout a Related AllowanceTotalWith a Related AllowanceWithout a Related AllowanceTotal
Commercial real estate
CRE Nonowner Occupied$1,686 $2,261 $3,947 $2,873 $2,271 $5,144 
CRE Owner Occupied509 3,443 3,952 509 2,043 2,552 
Multifamily— 405 405 — 131 131 
Farmland373 1,166 1,539 — 46 46 
Total Commercial real estate2,568 7,275 9,843 3,382 4,491 7,873 
Commercial and industrial10,788 1,994 12,782 10,519 398 10,917 
Residential mortgage
1-4 Family 1st Lien— 3,468 3,468 24 1,188 1,212 
1-4 Family Rental— 314 314 146 949 1,095 
HELOC and Junior Liens104 1,897 2,001 — 1,840 1,840 
Total Residential Mortgage104 5,679 5,783 170 3,977 4,147 
Consumer— 12 12 — 14 14 
Total loans$13,460 $14,960 $28,420 $14,071 $8,880 $22,951 
The amount of interest income recognized on nonaccrual loans was approximately $2.4 million and $674 thousand during the three months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 2026 and 2025, the amount of interest income recognized on nonaccrual loans was approximately $2.5 million and $801 thousand, respectively.
Credit Quality Indicators
Mid Penn categorizes loans 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. On a minimum of a quarterly basis, Mid Penn analyzes loans individually to classify the loans as to their credit risk. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal.
PASS - This type of classification consists of 6 subcategories:    
Nominal Risk / Pass - This loan classification is a credit extension of the highest quality.
Moderate Risk / Pass - This type of classification has strong financial ratios, substantial debt capacity, and low leverage with a very favorable comparison to industry peers or better than average improving trends.
Good Acceptable Risk / Pass - This type of classification is a reasonable credit risk having financial ratios on par with its peers and demonstrates slightly improving trends over time; the Borrower lists good quality assets with relatively low leverage and ample debt capacity.
Average Acceptable Risk / Pass - This type of classification has financial ratios and assets that are of above average quality; however, the leverage is worse than average compared to industry standards; the Borrower should have a good repayment history and possess consistent earnings with some growth.
Marginally Acceptable Risk / Pass - This type of classification has financial ratios consistent with industry averages, assets of average quality with ascertainable values, acceptable leverage, moderate capital assets and an acceptable reliance on trade debt; however, the Borrower demonstrates marginally adequate earnings, cash flow and debt service plus positive trends.
Weak/Monitor Risk (Watch list) / Pass - This type of classification has financial ratios that are slightly below standard industry averages and assets are below average quality with unstable values; fixed assets could be near or at the end of their useful life and liabilities may not match the asset structure.

SPECIAL MENTION - These credits have developing weaknesses deserving extra attention from the lender and lending management. They are currently protected, but potentially weak. The weakness may be cash flow, leverage, liquidity, management, industry or other factors which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date.

SUBSTANDARD - These credit extensions also have well defined weaknesses, which are inadequately protected by the current worth and debt service capacity of the Borrower or the collateral pledged, if any. The repayment of principal and interest as originally intended can be jeopardized by defined weaknesses related to adverse financial, managerial, economic, market or political conditions.

DOUBTFUL - These credits have definite weaknesses inherent in Substandard loans with added characteristics that are severe enough to make further collection in full highly questionable and improbable based on the current trends.

LOSS - These loans are considered uncollectible and no longer a viable asset of the Bank. They lack an identifiable source of repayment based on an inability to generate sufficient cash flow to service their debt. All trends are negative and the damage to the financial condition of the borrower can’t be reversed now or in the near future.
The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal:
June 30, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized
Cost Basis
(In thousands)20262025202420232022PriorTotal
CRE Nonowner Occupied
Pass$192,454 $174,223 $132,305 $207,490 $366,796 $500,719 $15,133 $1,589,120 
Special mention— — 333 — — 333 — 666 
Substandard or lower— — — 1,686 — 8,383 — 10,069 
Total CRE Nonowner Occupied192,454 174,223 132,638 209,176 366,796 509,435 15,133 1,599,855 
Gross charge-offs— — — (498)— (3)— (501)
Current period recoveries— — — — — — — — 
Net charge-offs— — — (498)— (3)— (501)
CRE Owner Occupied
Pass77,592 126,627 59,954 110,219 107,448 306,067 16,292 804,199 
Special mention— — 1,568 890 11,337 6,800 — 20,595 
Substandard or lower— — — — 1,909 4,212 — 6,121 
Total CRE Owner Occupied77,592 126,627 61,522 111,109 120,694 317,079 16,292 830,915 
Gross charge-offs— — — — — — — — 
Current period recoveries— — 95 — — — — 95 
Net charge-offs— — 95 — — — — 95 
Multifamily
Pass19,937 41,038 20,891 50,615 161,072 147,252 4,628 445,433 
Special mention— — — — — 378 — 378 
Substandard or lower— — 287 — — 118 — 405 
Total Multifamily19,937 41,038 21,178 50,615 161,072 147,748 4,628 446,216 
Gross charge-offs— — — — — — — — 
Current period recoveries— — — — — — — — 
Net charge-offs— — — — — — — — 
Farmland
Pass25,984 29,404 21,157 21,985 49,205 74,172 15,089 236,996 
Special mention— — — 422 — — — 422 
Substandard or lower— — — 373 — 2,606 120 3,099 
Total Farmland25,984 29,404 21,157 22,780 49,205 76,778 15,209 240,517 
Gross charge-offs— — — — — — — — 
Current period recoveries— — — — — — — — 
Net charge-offs— — — — — — — — 
Commercial and industrial
Pass49,772 88,755 84,768 54,605 49,340 125,632 237,844 690,716 
Special mention— — — 673 3,255 2,743 3,522 10,193 
Substandard or lower— — 510 18,503 4,006 3,331 1,172 27,522 
Total Commercial and industrial49,772 88,755 85,278 73,781 56,601 131,706 242,538 728,431 
Gross charge-offs— — — — — — — — 
Current period recoveries— — — 4 — 2 — 6 
Net charge-offs— — — 4 — 2 — 6 
Residential Construction
Pass20,597 36,346 2,224 11,844 397 — 16,526 87,934 
Special mention— — — — — — — — 
Substandard or lower— — — — — — — — 
Total Residential Construction20,597 36,346 2,224 11,844 397 — 16,526 87,934 
Gross charge-offs— — — — — — — — 
Current period recoveries— — — — — — — — 
Net charge-offs— — — — — — — — 
Other Construction
Pass22,744 127,559 53,252 49,522 41,743 17,076 18,606 330,502 
Special mention— — — — — — — — 
Substandard or lower— — — — — — — — 
Total Other Construction22,744 127,559 53,252 49,522 41,743 17,076 18,606 330,502 
Gross charge-offs— — — — — — — — 
Current period recoveries— — — — — — — — 
Net charge-offs— — — — — — — — 
1-4 Family 1st Lien
Performing44,544 21,318 28,048 57,731 46,636 367,874 1,646 567,797 
Nonperforming3,566 1,376 324 100 — 1,785 — 7,151 
Total 1-4 Family 1st Lien48,110 22,694 28,372 57,831 46,636 369,659 1,646 574,948 
Gross charge-offs— — — — — — — — 
Current period recoveries— — — — — 5 — 5 
Net recoveries— — — — — 5 — 5 
1-4 Family Rental
Performing40,302 49,615 23,495 44,515 102,081 198,889 7,967 466,864 
Nonperforming— — — — 336 3,301 — 3,637 
Total 1-4 Family Rental40,302 49,615 23,495 44,515 102,417 202,190 7,967 470,501 
Gross charge-offs— — — — — (13)— (13)
Current period recoveries— — — — — 13 — 13 
Net charge-offs— — — — — — — — 
HELOC and Junior Liens
Performing4,279 10,811 5,882 18,376 8,778 24,064 220,691 292,881 
Nonperforming— — 1,128 89 138 2,004 1,001 4,360 
Total HELOC and Junior Liens4,279 10,811 7,010 18,465 8,916 26,068 221,692 297,241 
Gross charge-offs— — — (48)— — — (48)
Current period recoveries— — — — — — — — 
Net charge-offs— — — (48)— — — (48)
Consumer
Performing4,102 930 1,006 702 237 658 2,449 10,084 
Nonperforming— — — 25 — — — 25 
Total Consumer4,102 930 1,006 727 237 658 2,449 10,109 
Gross charge-offs— — — — — (652)— (652)
Current period recoveries— — — — — 24 — 24 
Net charge-offs— — — — — (628)— (628)
Total
Pass$409,080 $623,952 $374,551 $506,280 $776,001 $1,170,918 $324,118 $4,184,900 
Special mention— — 1,901 1,985 14,592 10,254 3,522 32,254 
Substandard or lower— — 797 20,562 5,915 18,650 1,292 47,216 
Performing93,227 82,674 58,431 121,324 157,732 591,485 232,753 1,337,626 
Nonperforming3,566 1,376 1,452 214 474 7,090 1,001 15,173 
Total$505,873 $708,002 $437,132 $650,365 $954,714 $1,798,397 $562,686 $5,617,169 
December 31, 2025
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized
Cost Basis
(In thousands)20252024202320222021PriorTotal
CRE Nonowner Occupied
Pass$156,421 $98,728 $188,873 $358,610 $156,310 $375,646 $16,109 $1,350,697 
Special mention— — 1,698 — — 90 — 1,788 
Substandard or lower— — 1,540 — — 10,015 — 11,555 
Total CRE Nonowner Occupied156,421 98,728 192,111 358,610 156,310 385,751 16,109 1,364,040 
Gross charge-offs— — — (691)— (394)— (1,085)
Current period recoveries— — — 301 — 4 — 305 
Net charge-offs— — — (390)— (390)— (780)
CRE Owner Occupied
Pass119,632 65,978 97,419 105,690 64,478 239,464 16,370 709,031 
Special mention— — 922 1,576 172 2,939 — 5,609 
Substandard or lower— 181 — 1,888 177 1,978 — 4,224 
Total CRE Owner Occupied119,632 66,159 98,341 109,154 64,827 244,381 16,370 718,864 
Gross charge-offs— (346)— — — — — (346)
Net charge-offs— (346)— — — — — (346)
Multifamily
Pass37,788 4,816 62,305 156,236 68,254 86,424 3,271 419,094 
Special mention— — — — — 42 — 42 
Substandard or lower— — — — — 131 — 131 
Total Multifamily37,788 4,816 62,305 156,236 68,254 86,597 3,271 419,267 
Farmland
Pass29,858 23,228 24,273 51,055 36,651 44,326 15,255 224,646 
Special mention— — 428 — — — — 428 
Substandard or lower— — 397 — 2,299 46 — 2,742 
Total Farmland29,858 23,228 25,098 51,055 38,950 44,372 15,255 227,816 
Commercial and industrial
Pass96,562 89,541 70,773 64,532 41,663 90,534 240,497 694,102 
Special mention— — — 87 — 1,495 — 1,582 
Substandard or lower— 115 15,663 500 1,249 1,299 5,521 24,347 
Total Commercial and industrial96,562 89,656 86,436 65,119 42,912 93,328 246,018 720,031 
Gross charge-offs— — — — — (294)— (294)
Current period recoveries— — 1 — — 8 — 9 
Net charge-offs— — 1 — — (286)— (285)
Residential construction
Pass29,399 27,382 17,469 351 — — 10,698 85,299 
Total Residential construction29,399 27,382 17,469 351 — — 10,698 85,299 
Other construction
Pass64,396 79,617 74,890 42,758 7,790 12,387 28,552 310,390 
Total Other construction64,396 79,617 74,890 42,758 7,790 12,387 28,552 310,390 
1-4 Family 1st Lien
Performing57,120 28,810 59,920 49,052 38,466 179,375 1,489 414,232 
Nonperforming— — 100 48 — 3,041 — 3,189 
Total 1-4 Family 1st Lien57,120 28,810 60,020 49,100 38,466 182,416 1,489 417,421 
Current period recoveries— — — — — 90 — 90 
Net recoveries— — — — — 90 — 90 
1-4 Family Rental
Performing46,766 22,067 45,885 99,841 59,781 131,001 2,154 407,495 
Nonperforming— — 292 — 1,572 1,606 — 3,470 
Total 1-4 Family Rental46,766 22,067 46,177 99,841 61,353 132,607 2,154 410,965 
HELOC and Junior Liens
Performing8,403 5,050 17,397 8,447 4,815 14,180 115,728 174,020 
Nonperforming— 1,151 93 152 — 1,699 1,001 4,096 
Total HELOC and Junior Liens8,403 6,201 17,490 8,599 4,815 15,879 116,729 178,116 
Consumer
Performing5,143 1,169 829 276 265 702 2,216 10,600 
Nonperforming— — 29 — — — — 29 
Total Consumer5,143 1,169 858 276 265 702 2,216 10,629 
Gross charge-offs— — — — — (98)— (98)
Current period recoveries— — — — — 55 — 55 
Net charge-offs— — — — — (43)— (43)
Total
Pass$534,056 $389,290 $536,002 $779,232 $375,146 $848,781 $330,752 $3,793,259 
Special mention— — 3,048 1,663 172 4,566 — 9,449 
Substandard or lower— 296 17,600 2,388 3,725 13,469 5,521 42,999 
Performing117,432 57,096 124,031 157,616 103,327 325,258 121,587 1,006,347 
Nonperforming— 1,151 514 200 1,572 6,346 1,001 10,784 
Total$651,488 $447,833 $681,195 $941,099 $483,942 $1,198,420 $458,861 $4,862,838 

Mid Penn had no loans classified as "doubtful" as of June 30, 2026 and December 31, 2025. There was $1.2 million and $567 thousand in mortgage loans for which formal foreclosure proceedings were in process at June 30, 2026 and December 31, 2025, respectively.
Collateral-Dependent Loans
A financial asset 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 financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets 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. Total collateral-dependent loans as of June 30, 2026 were $28.4 million.
Allowance for Credit Losses
Mid Penn’s ACL - loans methodology follows guidance within FASB ASC Subtopic 326-20. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries.
The ACL for individual loans, such as nonaccrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Real Estate Administration Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off.
Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. At the purchase or acquisition date, the amortized cost basis of PCD loans includes the purchase price and the initial estimate of credit losses.
Effective January 1, 2026, the Corporation adopted ASU 2025-08 for applicable purchased seasoned loans ("PSL loans"), under which an initial allowance for credit losses is recognized at acquisition and incorporated into the initial amortized cost basis of the loans, rather than recognized through a Day 1 provision expense. The impact of adoption is reflected in the ACL rollforward in this Note and is further discussed in "Note 1 - Summary of Significant Accounting Policies".
Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL-loans account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off.
The following tables present the activity in the ACL - loans by portfolio segment for the three and six months ended June 30, 2026 and the three and six months ended June 30, 2025:
(In thousands)Balance
as of
March 31, 2026		Initial ACL - PCD LoansInitial ACL - PSL LoansCharge-offsRecoveriesNet Loans (Charged off) RecoveredProvision/(Benefit) for Credit LossesBalance
as of
June 30, 2026
Commercial Real Estate
CRE Nonowner Occupied10,207 — — (2)— (2)595 10,800 
CRE Owner Occupied8,274 — — — 2 2 (1,634)6,642 
Multifamily1,542 — — — — — (68)1,474 
Farmland2,154 — — — — — 371 2,525 
Commercial and industrial9,856 — — — 6 6 1,036 10,898 
Construction
Residential Construction431 — — — — — (13)418 
Other Construction1,676 — — — — — (88)1,588 
Residential Mortgage
1-4 Family 1st Lien3,695 — — — 3 3 48 3,746 
1-4 Family Rental2,171 — — — 13 13 (21)2,163 
HELOC and Junior Liens1,047 — — (48)— (48)355 1,354 
Consumer52 — — (11)15 4 (24)32 
Total41,105 — — (61)39 (22)557 41,640 
(In thousands)Balance
as of
December 31, 2025
Initial ACL - PCD Loans (1)
Initial ACL - PSL Loans (2)
Charge-offsRecoveriesNet Loans (Charged off) RecoveredProvision/(Benefit) for Credit LossesBalance
as of
June 30, 2026
Commercial Real Estate
CRE Nonowner Occupied9,917 — 269 (501)— (501)1,115 10,800 
CRE Owner Occupied6,095 183 552 — 95 95 (283)6,642 
Multifamily1,443 — 87 — — — (56)1,474 
Farmland2,118 — 1 — — — 406 2,525 
Commercial and industrial9,259 547 599 — 6 6 487 10,898 
Construction
Residential Construction477 — 54 — — — (113)418 
Other Construction1,464 — 76 — — — 48 1,588 
Residential Mortgage
1-4 Family 1st Lien2,434 92 1,304 — 5 5 (89)3,746 
1-4 Family Rental2,295 — 157 (13)13 — (289)2,163 
HELOC and Junior Liens559 155 337 (48)— (48)351 1,354 
Consumer30 — 2 (652)24 (628)628 32 
Total36,091 977 3,438 (1,214)143 (1,071)2,205 41,640 
(1) Includes a $977 thousand initial allowance on PCD loans acquired in the 1st Colonial acquisition on February 27, 2026.
(2) Includes a $3.4 million initial allowance on PSL loans acquired in the 1st Colonial acquisition on February 27, 2026.
(In thousands)Balance
as of
March 31, 2025		Initial ACL - PCD LoansCharge-offsRecoveriesNet Loans (Charged off) Recovered
Provision/(Benefit) for Credit Losses (1)
Balance
as of
June 30, 2025
Commercial Real Estate
CRE Nonowner Occupied$10,380 $89 $(691)$1 $(690)$819 $10,598 
CRE Owner Occupied5,722 100 — — — 608 6,430 
Multifamily3,324 31 — — — (1,377)1,978 
Farmland2,075 — — — — 23 2,098 
Commercial and industrial7,864 36 (203)3 (200)402 8,102 
Construction
Residential Construction830 — — — — 128 958 
Other Construction1,899 — — — — 537 2,436 
Residential Mortgage
1-4 Family 1st Lien1,582 37 — 83 83 494 2,196 
1-4 Family Rental1,740 47 — — — 471 2,258 
HELOC and Junior Liens404 3 — — — 113 520 
Consumer18 — (15)11 (4)27 41 
Total$35,838 $343 $(909)$98 $(811)$2,245 $37,615 
(In thousands)Balance
as of
December 31, 2024		Initial ACL - PCD LoansCharge-offsRecoveriesNet Loans (Charged off) Recovered
Provision/(Benefit) for Credit Losses (1)
Balance
as of
June 30, 2025
Commercial Real Estate
CRE Nonowner Occupied$11,047 $89 $(691)$2 $(689)$151 $10,598 
CRE Owner Occupied5,243 100 — — — 1,087 6,430 
Multifamily3,432 31 — — — (1,485)1,978 
Farmland1,932 — — — — 166 2,098 
Commercial and industrial7,122 36 (203)9 (194)1,138 8,102 
Construction
Residential Construction931 — — — — 27 958 
Other Construction2,131 — — — — 305 2,436 
Residential Mortgage
1-4 Family 1st Lien1,503 37 — 85 85 571 2,196 
1-4 Family Rental1,756 47 — — — 455 2,258 
HELOC and Junior Liens392 3 — — — 125 520 
Consumer25 — (30)20 (10)26 41 
Total$35,514 $343 $(924)$116 $(808)$2,566 $37,615 
(1) Includes a $2.3 million initial provision on non-PCD loans acquired in the William Penn acquisition.
Modifications to Borrowers Experiencing Financial Difficulty
From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, or a combination thereof, among other things.

Information related to loans modified for the three and six months ended June 30, 2026, whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table:

(Dollars in thousands)Interest Only
Term Extension		Combination:
Interest Only and
Term Extension		Total% of Total Class of Financing Receivable
Three months ended June 30, 2026
Commercial real estate
CRE Nonowner Occupied— — 251 251 0.02 %
Total Commercial real estate— — 251 251 0.01 %
Residential mortgage
1-4 Family Rental— — 1,059 1,059 0.23 %
Total Residential Mortgage— — 1,059 1,059 0.08 %
Consumer— — — — — %
Total$— $— $1,310 $1,310 
(Dollars in thousands)Interest OnlyTerm ExtensionCombination:
Interest Only and
Term Extension		Total% of Total Class of Financing Receivable
Six months ended June 30, 2026
Commercial real estate
CRE Nonowner Occupied$— $— $251 $251 0.02 %
Total Commercial real estate$— $— $251 $251 0.01 %
Commercial and industrial$— $87 $— $87 0.01 %
Residential mortgage
1-4 Family Rental— — 1,059 1,059 0.23 %
Total Residential Mortgage— — 1,059 1,059 0.08 %
Total$— $87 $1,310 $1,397 

There were no loan modifications to borrowers experiencing financial difficulty for the three and six months ended June 30, 2025.

The financial effects of the loan modifications reduced the monthly payment amounts for the borrower and the term extensions in the table above added a weighted-average of 2.0 years to the life of the loan, which also reduced the monthly payment amounts for the borrower.
As of June 30, 2026, there were no defaults on loans modified to borrowers experiencing financial difficulty within the twelve months following modification.