v3.26.1
Off-Balance Sheet Arrangements
 6 Months Ended
Jun. 30, 2026
Off-Balance Sheet Arrangements [Abstract]  
Off-Balance Sheet Arrangements
6.
OFF-BALANCE SHEET ARRANGEMENTS
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business in order to
meet the financial
needs of
its customers
and to reduce
its own
exposure to
fluctuations in
interest rates.
These financial
instruments
include
unfunded
commitments
under
lines
of
credit,
commitments
to
extend
credit,
and
standby
and
commercial letters
of credit.
Those instruments involve,
to varying
degrees, elements of
credit and
interest rate
risk in
excess
of the amount recognized
in the Company’s
Consolidated Balance Sheets.
The Company uses the
same credit policies in
making commitments and conditional obligations as it
does for on-balance sheet instruments.
The Company's exposure
to credit loss
in the event
of nonperformance by
the other party
to the financial
instruments
for unused lines of credit and standby letters of credit is
represented by the contractual amount of these commitments.
A
summary
of
the
amounts
of
the
Company's
financial
instruments
with
off-balance
sheet
risk
are
shown
below
at
June 30, 2026 and December 31, 2025 (in thousands):
Commitments to
extend credit
are agreements
to lend
to a
customer as
long as
there is
no violation
of any
condition
established in the contract. Commitments generally have
fixed expiration dates or other termination clauses.
Unfunded lines of
credit and revolving
credit lines are
commitments for possible
future extensions
of credit to
existing
customers. These lines of
credit are uncollateralized and
usually do not contain
a specified maturity date
and ultimately may
not be drawn upon to the total extent to which the Company
committed.
Standby
and
commercial
letters
of
credit
are
conditional
commitments
issued
by
the
Company
to
guarantee
the
performance of a
customer to
a third
party. Those letters of
credit are
primarily issued to
support public and
private borrowing
arrangements. Essentially all letters of credit have fixed maturity dates and since
many of them expire without being drawn
upon, they do not generally present a significant liquidity
risk to the Company.
Changes in the ACL for the three and six months ended June
30, 2026 and 2025 were as follows (in thousands):
June 30, 2026
December 31, 2025
Commitments to grant loans and unfunded lines of credit
$
205,573
$
161,606
Standby and commercial letters of credit
3,646
2,700
Total
$
209,219
$
164,306
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Beginning balance
$
957
$
581
$
752
$
571
Provision for credit losses - off-balance sheet arrangements
380
134
585
144
Total
$
1,337
$
715
$
1,337
$
715