Loans, net and allowance for credit losses (Tables)

6 Months Ended

Jun. 30, 2026

Loans, net and allowance for credit losses

Schedule of major classifications of loans outstanding


(Dollars in thousands)		June 30, 2026			December 31, 2025
Commercial and industrial		$	712,705		$	667,948
Municipal			200,552			202,303
Real estate
Commercial			2,490,510			2,314,110
Residential			640,000			602,309
Total			3,130,510			2,916,419
Consumer
Indirect auto			82,721			93,742
Consumer other			16,775			17,496
Total			99,496			111,238
Equipment financing			159,558			168,988
Total		$	4,302,821		$	4,066,896

Schedule of changes in allowance for loan losses account by major classification of loans


		June 30, 2026
								Real Estate									Equipment
(Dollars in thousands)		Commercial			Municipal			Commercial			Residential			Consumer			Financing			Total
Allowance for credit losses:
Beginning balance April 1, 2026		$	5,985		$	1,490		$	22,171		$	5,071		$	1,710		$	3,159		$	39,586
Charge-offs			(156)						(166)						(311)			(64)			(697)
Recoveries			6									1			156			154			317
Provisions (credits)			1,164			(287)			3,356			(470)			28			(686)			3,105
Ending balance		$	6,999		$	1,203		$	25,361		$	4,602		$	1,583		$	2,563		$	42,311

		June 30, 2025
								Real Estate									Equipment
(Dollars in thousands)		Commercial			Municipal			Commercial			Residential			Consumer			Financing			Total
Allowance for credit losses:
Beginning balance April 1, 2025		$	6,422		$	1,249		$	20,861		$	5,069		$	2,281		$	5,172		$	41,054
Charge-offs			(415)						(62)						(259)			(415)			(1,151)
Recoveries			292						566			64			145			159			1,226
(Credits) provisions			(76)			197			(745)			(127)			14			498			(239)
Ending balance		$	6,223		$	1,446		$	20,620		$	5,006		$	2,181		$	5,414		$	40,890


		June 30, 2026
								Real Estate									Equipment
(Dollars in thousands)		Commercial			Municipal			Commercial			Residential			Consumer			Financing			Total
Allowance for credit losses:
Beginning balance January 1, 2026		$	6,036		$	1,413		$	19,998		$	4,963		$	1,759		$	4,838		$	39,007
Charge-offs			(156)						(166)						(905)			(446)			(1,673)
Recoveries			27						3			10			257			188			485
Provisions (credits)			1,092			(210)			5,526			(371)			472			(2,017)			4,492
Ending balance		$	6,999		$	1,203		$	25,361		$	4,602		$	1,583		$	2,563		$	42,311

		June 30, 2025
								Real Estate									Equipment
(Dollars in thousands)		Commercial			Municipal			Commercial			Residential			Consumer			Financing			Total
Allowance for credit losses:
Beginning balance January 1, 2025		$	6,004		$	1,072		$	21,804		$	4,924		$	2,540		$	5,432		$	41,776
Charge-offs			(572)						(62)			(92)			(646)			(1,012)			(2,384)
Recoveries			305						566			65			318			283			1,537
Provisions (credits)			486			374			(1,688)			109			(31)			711			(39)
Ending balance		$	6,223		$	1,446		$	20,620		$	5,006		$	2,181		$	5,414		$	40,890

Schedule of information concerning nonaccrual loans by major loan classification


		June 30, 2026
								Real Estate									Equipment
(Dollars in thousands)		Commercial			Municipal			Commercial			Residential			Consumer			Financing			Total
Allowance for credit losses:
Ending balance		$	6,999		$	1,203		$	25,361		$	4,602		$	1,583		$	2,563		$	42,311
Ending balance: individually evaluated for impairment			440						419			69						164			1,092
Ending balance: collectively evaluated for impairment		$	6,559		$	1,203		$	24,942		$	4,533		$	1,583		$	2,399		$	41,219
Loans receivable:
Ending balance		$	712,705		$	200,552		$	2,490,510		$	640,000		$	99,496		$	159,558		$	4,302,821
Individually evaluated - collateral dependent - real estate									7,023			1,890									8,913
Individually evaluated - collateral dependent - non-real estate			2,600															841			3,441
Collectively evaluated		$	710,105		$	200,552		$	2,483,487		$	638,110		$	99,496		$	158,717		$	4,290,467


		December 31, 2025
								Real Estate									Equipment
(Dollars in thousands)		Commercial			Municipal			Commercial			Residential			Consumer			Financing			Total
Allowance for credit losses:
Ending balance		$	6,036		$	1,413		$	19,998		$	4,963		$	1,759		$	4,838		$	39,007
Ending balance: individually evaluated for impairment			404						451			78						399			1,332
Ending balance: collectively evaluated for impairment		$	5,632		$	1,413		$	19,547		$	4,885		$	1,759		$	4,439		$	37,675
Loans receivable:
Ending balance		$	667,948		$	202,303		$	2,314,110		$	602,309		$	111,238		$	168,988		$	4,066,896
Individually evaluated - collateral dependent - real estate			1,470						4,056			3,039									8,565
Individually evaluated - collateral dependent - non-real estate			485															1,153			1,638
Collectively evaluated		$	665,993		$	202,303		$	2,310,054		$	599,270		$	111,238		$	167,835		$	4,056,693

Schedule of nonaccrual loans



			June 30, 2026
			Total			Nonaccrual with			Nonaccrual with
			Nonaccrual			an Allowance for			no Allowance for
(Dollars in thousands)			Loans			Credit Losses			Credit Losses
Commercial and industrial		$	2,699		$	2,600		$	99
Municipal
Real estate:
Commercial			7,415			7,023			392
Residential			2,326			1,890			436
Consumer			371						371
Equipment financing			856			841			15
Total		$	13,667		$	12,354		$	1,313



			December 31, 2025
			Total			Nonaccrual with			Nonaccrual with
			Nonaccrual			an Allowance for			no Allowance for
(Dollars in thousands)			Loans			Credit Losses			Credit Losses
Commercial and industrial		$	1,955		$	1,016		$	939
Municipal
Real estate:
Commercial			4,152			1,178			2,974
Residential			2,511			67			2,444
Consumer			1,048						1,048
Equipment financing			1,130			828			302
Total		$	10,796		$	3,089		$	7,707

Schedule of major classification of loans portfolio summarized by credit quality


		As of June 30, 2026
(Dollars in thousands)			2026			2025			2024			2023			2022			Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term			Total
Commercial and industrial
Pass		$	79,012		$	79,091		$	69,493		$	37,572		$	47,570		$	121,229		$	260,449		$	10		$	694,426
Special mention			36												300			15			1,873						2,224
Substandard			46			373			530			148			1,958			792			12,208						16,055
Total commercial			79,094			79,464			70,023			37,720			49,828			122,036			274,530			10			712,705

Municipal
Pass			18,410			12,249			4,266			1,181			44,955			117,647			1,844						200,552
Special mention
Substandard
Total municipal			18,410			12,249			4,266			1,181			44,955			117,647			1,844						200,552

Commercial real estate
Pass			262,447			400,923			141,666			158,685			526,125			947,847						1,396			2,439,089
Special mention						562						5,760			629			10,001									16,952
Substandard			97			1,144			1,146			1,547			12,023			18,297						215			34,469
Total commercial real estate			262,544			402,629			142,812			165,992			538,777			976,145						1,611			2,490,510

Residential real estate
Pass			31,623			55,146			36,952			38,658			64,674			239,711			172,104						638,868
Special mention
Substandard																		959			173						1,132
Total residential real estate			31,623			55,146			36,952			38,658			64,674			240,670			172,277						640,000

Consumer
Pass			12,556			21,434			15,801			18,214			15,170			8,263			7,717						99,155
Special mention
Substandard			2			8			78			83			117			47			6						341
Total consumer			12,558			21,442			15,879			18,297			15,287			8,310			7,723						99,496

Equipment financing
Pass			26,334			43,913			40,926			31,671			12,722			1,803									157,369
Special mention
Substandard						388			648			795			358												2,189
Total equipment financing			26,334			44,301			41,574			32,466			13,080			1,803									159,558

Total Loans		$	430,563		$	615,231		$	311,506		$	294,314		$	726,601		$	1,466,611		$	456,374		$	1,621		$	4,302,821

Gross charge-offs
Commercial and industrial		$			$			$	98		$			$			$	58		$			$			$	156
Municipal
Commercial real estate																		166									166
Residential real estate
Consumer						191			265			179			163			107									905
Equipment financing						10			179			76			181												446
Total gross charge-offs		$			$	201		$	542		$	255		$	344		$	331		$			$			$	1,673


		As of December 31, 2025
(Dollars in thousands)			2025			2024			2023			2022			2021			Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term			Total
Commercial and industrial
Pass		$	81,246		$	69,710		$	57,789		$	53,915		$	38,907		$	94,729		$	251,834		$	100		$	648,230
Special mention			300			572						2,725			36			9			8,718						12,360
Substandard						111			400			579			664			30			5,574						7,358
Total commercial			81,546			70,393			58,189			57,219			39,607			94,768			266,126			100			667,948

Municipal
Pass			23,125			4,324			1,354			45,369			88,165			38,331			1,635						202,303
Special mention
Substandard
Total municipal			23,125			4,324			1,354			45,369			88,165			38,331			1,635						202,303

Commercial real estate
Pass			359,323			146,483			175,145			566,480			441,660			586,189						71			2,275,351
Special mention			573									1,508			2,174			9,149									13,404
Substandard			542			508			1,217			7,841			6,870			8,377									25,355
Total commercial real estate			360,438			146,991			176,362			575,829			450,704			603,715						71			2,314,110

Residential real estate
Pass			56,021			38,109			40,913			66,927			104,534			148,121			146,380						601,005
Special mention
Substandard															258			869			177						1,304
Total residential real estate			56,021			38,109			40,913			66,927			104,792			148,990			146,557						602,309

Consumer
Pass			25,443			19,746			24,017			21,716			9,574			3,153			6,493						110,142
Special mention
Substandard			158			161			137			338			177			113			12						1,096
Total consumer			25,601			19,907			24,154			22,054			9,751			3,266			6,505						111,238

Equipment financing
Pass			50,357			51,024			43,364			21,050			724												166,519
Special mention									129			12															141
Substandard			287			664			691			686															2,328
Total equipment financing			50,644			51,688			44,184			21,748			724												168,988

Total Loans		$	597,375		$	331,412		$	345,156		$	789,146		$	693,743		$	889,070		$	420,823		$	171		$	4,066,896

Gross charge-offs
Commercial and industrial		$			$	300		$			$	24		$	57		$	493		$			$			$	874
Municipal
Commercial real estate												853						95									948
Residential real estate												92															92
Consumer						195			361			342			116			55									1,069
Equipment Financing			210			201			778			661															1,850
Total gross charge-offs		$	210		$	696		$	1,139		$	1,972		$	173		$	643		$			$			$	4,833

Schedule of major classifications of loans by past due status


		June 30, 2026
								Greater												Loans > 90
		30-59 Days			60-89 Days			than 90			Total Past									Days and
(Dollars in thousands)		Past Due			Past Due			Days			Due			Current			Total Loans			Accruing
Commercial and industrial		$	422		$	403		$	927		$	1,752		$	710,953		$	712,705		$
Municipal															200,552			200,552
Real estate:
Commercial			1,641			3,028			4,758			9,427			2,481,083			2,490,510
Residential			2,954			426			1,498			4,878			635,122			640,000			451
Consumer			1,701			359			182			2,242			97,254			99,496
Equipment financing			972			191			318			1,481			158,077			159,558
Total		$	7,690		$	4,407		$	7,683		$	19,780		$	4,283,041		$	4,302,821		$	451


		December 31, 2025
								Greater												Loans > 90
		30-59 Days			60-89 Days			than 90			Total Past									Days and
(Dollars in thousands)		Past Due			Past Due			Days			Due			Current			Total Loans			Accruing
Commercial and industrial		$	1,090		$	147		$	1,827		$	3,064		$	664,884		$	667,948		$
Municipal															202,303			202,303
Real estate:
Commercial			3,943			1,459			3,550			8,952			2,305,158			2,314,110
Residential			2,948			1,413			1,748			6,109			596,200			602,309			524
Consumer			2,527			500			776			3,803			107,435			111,238
Equipment financing			733			747			495			1,975			167,013			168,988
Total		$	11,241		$	4,266		$	8,396		$	23,903		$	4,042,993		$	4,066,896		$	524

Schedule of allowance for credit losses on off balance sheet commitments


			For the Three Months Ended
(Dollars in thousands)			June 30, 2026			June 30, 2025
Beginning balance		$	1,081		$	677
Charge-off			(3)
Provision for credit losses recorded in noninterest expense			219			172
Total allowance for credit losses on off balance sheet commitments		$	1,297		$	849

			For the Six Months Ended
(Dollars in thousands)			June 30, 2026			June 30, 2025
Beginning balance		$	1,305		$	880
Charge-off			(3)			(1)
Credit to provision for credit losses recorded in noninterest expense			(5)			(30)
Total allowance for credit losses on off balance sheet commitments		$	1,297		$	849

Summary of contractual amounts of off-balance sheet commitments

The contractual amounts of off-balance sheet commitments at June 30, 2026 and December 31, 2025 are as follows:


(Dollars in thousands)		June 30, 2026			December 31, 2025
Commitments to extend credit		$	678,794		$	660,353
Unused portions of lines of credit			197,179			178,689
Standby letters of credit			72,570			54,970
		$	948,543		$	894,012

Summary loans whose terms have been modified resulting in troubled debt restructurings

Other-Than-Insignificant Payment Delay

For the six months ended June 30,

2026

2025

Number
of

Amortized Cost

% of Total Class of Financing

Related

Number
of

Amortized Cost

% of Total Class of Financing

Related

(Dollars in thousands)

Loans

Basis

Receivable

Reserve

Loans

Basis

Receivable

Reserve

Modified Loans to Borrowers Experiencing Financial Difficulty:

Commercial and industrial

$

0.00%

$

1

$

242

0.036%

$

Total

$

$

1

$

242

$

Schedule of financing receivable, modified, financial effect


		Other-Than-Insignificant Payment Delay
(Dollars in thousands)		No. of Loans			Balance	Financial Effect
For the Six Months Ended June 30, 2025
Nonaccrual modified loans to borrowers experiencing financial difficulty:
Commercial and industrial		1		$	242	Modified principal and interest payment to interest only for 4 months
Total		1		$	242