Loans and ACL (Tables)

6 Months Ended

Jun. 30, 2026

Receivables [Abstract]

Summary of Amortized Cost of Loans Held for Investment

The following table presents the amortized cost of loans held for investment as of the dates stated.


(Dollars in thousands)		June 30, 2026				December 31, 2025
Commercial and industrial		$	276,589			$	282,745
Real estate – construction, commercial			54,611				51,738
Real estate – construction, residential			28,844				31,772
Real estate – commercial			823,378				824,721
Real estate – residential			636,830				636,743
Real estate – farmland			4,368				4,580
Consumer			27,383				32,213
Gross loans held for investment			1,852,003				1,864,512
Deferred costs, net of loan fees			1,458				1,205
Total		$	1,853,461			$	1,865,717

Summary of Financing Receivable, Past Due

The following tables present the aging of the recorded investment of loans held for investment by loan category as of the dates stated.


		June 30, 2026
(Dollars in thousands)		Current Loans				30-59 Days Past Due				60-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total Loans
Commercial and industrial		$	255,836			$	1,506			$	1,442			$	841			$	16,964			$	276,589
Real estate – construction, commercial			54,485				3				61				—				62				54,611
Real estate – construction, residential			28,844				—				—				—				—				28,844
Real estate – commercial			821,101				1,101				10				—				1,166				823,378
Real estate – residential			622,347				1,143				2,407				1,595				9,338				636,830
Real estate – farmland			4,368				—				—				—				—				4,368
Consumer			25,069				921				179				115				1,099				27,383
Deferred costs, net of loan fees			1,458				—				—				—				—				1,458
Total		$	1,813,508			$	4,674			$	4,099			$	2,551			$	28,629			$	1,853,461


		December 31, 2025
(Dollars in thousands)		Current Loans				30-59 Days Past Due				60-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total Loans
Commercial and industrial		$	272,719			$	1,099			$	780			$	1,508			$	6,639			$	282,745
Real estate – construction, commercial			51,397				62				43				—				236				51,738
Real estate – construction, residential			31,772				—				—				—				—				31,772
Real estate – commercial			819,021				49				—				—				5,651				824,721
Real estate – residential			616,943				9,840				1,006				1,575				7,379				636,743
Real estate – farmland			4,580				—				—				—				—				4,580
Consumer			30,122				1,026				290				75				700				32,213
Deferred costs, net of loan fees			1,205				—				—				—				—				1,205
Total		$	1,827,759			$	12,076			$	2,119			$	3,158			$	20,605			$	1,865,717

Summary of Investment of PCI loans

The following tables present the recorded investment of nonaccrual loans held for investment with and without an ACL by loan category as of the dates stated.


		June 30, 2026
(Dollars in thousands)		Nonaccrual Loans with No ACL				Nonaccrual Loans with an ACL				Total Nonaccrual Loans
Commercial and industrial		$	1,700			$	15,264			$	16,964
Real estate – construction, commercial			—				62				62
Real estate – commercial			698				468				1,166
Real estate – residential			3,792				5,546				9,338
Consumer			—				1,099				1,099
Total		$	6,190			$	22,439			$	28,629


		December 31, 2025
(Dollars in thousands)		Nonaccrual Loans with No ACL				Nonaccrual Loans with an ACL				Total Nonaccrual Loans
Commercial and industrial		$	1,774			$	4,865			$	6,639
Real estate – construction, commercial			—				236				236
Real estate – commercial			5,634				17				5,651
Real estate – residential			1,602				5,777				7,379
Consumer			—				700				700
Total		$	9,010			$	11,595			$	20,605

The increase in nonaccrual loans since December 31, 2025 was primarily attributable to loans to a single out-of-market relationship originated prior to 2024 totaling $11.4 million. The loans, classified as commercial and industrial, remained current through May 2026 but became delinquent when the borrower failed to make its June 2026 payment. Consequently, the loans were placed on nonaccrual at June 30, 2026, and a reserve was established in the amount of $2.9 million.

Summary of Accrued Interest Receivable by Loan Type Reversed from Income

The following table presents accrued interest receivable by loan type reversed from interest income associated with loans held for investment that were placed on nonaccrual status for the periods stated.


		For the three months ended June 30,								For the six months ended June 30,
(Dollars in thousands)		2026				2025				2026				2025
Commercial and industrial		$	97			$	6			$	106			$	58
Real estate – construction, commercial			1				—				2				—
Real estate – commercial			34				2				64				2
Real estate – residential			169				65				196				67
Consumer			30				4				47				7
Total		$	331			$	77			$	415			$	134

Summary of Recorded Investment of Loans Held for Investment by Internal Loan Grade by Year of Orgination

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of June 30, 2026. There were no loans classified as doubtful or loss (risk grades 8 or 9) as of the same date. Also presented are current period gross charge-offs by loan type for the six months ended June 30, 2026. Of the $3.5 million of gross charge-offs of revolving loans presented for the six-month period, $3.3 million were attributable to business and consumer credit cards originated through a partnership with a third-party company. The third-party provides limited credit loss protection to the Bank, and upon receipt, credits for losses are reported as

recoveries, which were $3.3 million for the six months ended June 30, 2026. Since the inception of this partnership in early 2023, the Bank has not experienced a credit loss from this arrangement.


		Term Loans Recorded Investment Basis by Origination Year
(Dollars in thousands)		2026				2025				2024				2023				2022				Prior				Revolving Loans				Total
Commercial and industrial
Risk Grades 1 - 4		$	25,568			$	22,332			$	4,921			$	8,930			$	43,019			$	25,437			$	87,823			$	218,030
Risk Grades 5 - 6			350				1,583				3,190				1,139				12,140				5,241				4,398				28,041
Risk Grade 7			—				—				959				301				15,946				11,996				1,316				30,518
Total			25,918				23,915				9,070				10,370				71,105				42,674				93,537				276,589
Current period gross charge-offs			—				—				—				1				88				572				3,195				3,856

Real estate – construction, commercial
Risk Grades 1 - 4			13,440				17,227				2,654				1,931				3,839				5,195				3,864				48,150
Risk Grades 5 - 6			292				—				—				—				42				6,127				—				6,461
Total			13,732				17,227				2,654				1,931				3,881				11,322				3,864				54,611
Current period gross charge-offs			—				—				—				—				—				—				—				—

Real estate – construction, residential
Risk Grades 1 - 4			8,534				18,391				887				53				75				—				—				27,940
Risk Grades 5 - 6			—				413				—				—				179				—				—				592
Risk Grade 7			—				—				—				—				312				—				—				312
Total			8,534				18,804				887				53				566				—				—				28,844
Current period gross charge-offs			—				—				—				—				—				15				—				15

Real estate – commercial
Risk Grades 1 - 4			28,515				77,415				2,785				21,273				208,498				283,233				16,433				638,152
Risk Grades 5 - 6			1,545				823				—				3,700				80,218				67,817				3,897				158,000
Risk Grade 7			—				2,643				1,547				—				14,359				8,493				184				27,226
Total			30,060				80,881				4,332				24,973				303,075				359,543				20,514				823,378
Current period gross charge-offs			—				—				—				—				37				267				—				304

Real estate – residential
Risk Grades 1 - 4			30,569				4,756				3,026				61,411				194,825				267,706				51,149				613,442
Risk Grades 5 - 6			—				310				950				264				1,203				6,319				296				9,342
Risk Grade 7			—				559				—				1,082				4,951				7,001				453				14,046
Total			30,569				5,625				3,976				62,757				200,979				281,026				51,898				636,830
Current period gross charge-offs			—				—				—				—				—				43				89				132

Real estate – farmland
Risk Grades 1 - 4			—				—				140				—				958				2,877				126				4,101
Risk Grades 5 - 6			—				61				—				116				—				90				—				267
Total			—				61				140				116				958				2,967				126				4,368
Current period gross charge-offs			—				—				—				—				—				—				—				—

Consumer
Risk Grades 1 - 4			2,692				3,824				2,523				7,638				3,147				467				4,763				25,054
Risk Grades 5 - 6			32				38				183				414				321				64				1				1,053
Risk Grade 7			43				18				203				364				532				116				—				1,276
Total			2,767				3,880				2,909				8,416				4,000				647				4,764				27,383
Current period gross charge-offs			141				20				64				75				81				21				231				633

Total Loans
Risk Grades 1 - 4		$	109,318			$	143,945			$	16,936			$	101,236			$	454,361			$	584,915			$	164,158			$	1,574,869
Risk Grades 5 - 6			2,219				3,228				4,323				5,633				94,103				85,658				8,592				203,756
Risk Grade 7			43				3,220				2,709				1,747				36,100				27,606				1,953				73,378
Total		$	111,580			$	150,393			$	23,968			$	108,616			$	584,564			$	698,179			$	174,703			$	1,852,003
Total current period gross charge-offs		$	141			$	20			$	64			$	76			$	206			$	918			$	3,515			$	4,940

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of December 31, 2025. There were no loans classified as loss (risk grade 9) as of the same date.


		Term Loans Recorded Investment Basis by Origination Year
(Dollars in thousands)		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total
Commercial and industrial
Risk Grades 1 - 4		$	20,395			$	9,213			$	9,941			$	47,850			$	16,375			$	20,845			$	91,849			$	216,468
Risk Grades 5 - 6			762				408				1,257				20,110				2,817				3,944				2,465				31,763
Risk Grade 7			—				986				888				16,671				12,395				1,502				1,682				34,124
Risk Grade 8			—				—				—				—				—				390				—				390
Total			21,157				10,607				12,086				84,631				31,587				26,681				95,996				282,745

Real estate – construction, commercial
Risk Grades 1 - 4			22,147				5,186				2,099				4,001				3,139				3,417				62				40,051
Risk Grades 5 - 6			657				—				—				43				677				10,094				—				11,471
Risk Grade 7			—				—				—				—				5				211				—				216
Total			22,804				5,186				2,099				4,044				3,821				13,722				62				51,738

Real estate – construction, residential
Risk Grades 1 - 4			22,609				5,258				495				75				93				48				—				28,578
Risk Grades 5 - 6			338				—				—				2,544				—				—				—				2,882
Risk Grade 7			—				—				—				312				—				—				—				312
Total			22,947				5,258				495				2,931				93				48				—				31,772

Real estate – commercial
Risk Grades 1 - 4			75,900				4,500				29,768				209,573				101,178				190,435				17,057				628,411
Risk Grades 5 - 6			830				—				5,032				79,834				31,472				47,824				3,777				168,769
Risk Grade 7			—				1,555				—				17,793				2,519				5,674				—				27,541
Total			76,730				6,055				34,800				307,200				135,169				243,933				20,834				824,721

Real estate – residential
Risk Grades 1 - 4			4,382				2,705				65,443				204,911				104,375				181,362				51,559				614,737
Risk Grades 5 - 6			838				831				266				928				1,380				4,914				398				9,555
Risk Grade 7			561				—				1,099				3,676				1,207				5,354				554				12,451
Total			5,781				3,536				66,808				209,515				106,962				191,630				52,511				636,743

Real estate – farmland
Risk Grades 1 - 4			—				142				—				987				1,186				1,821				166				4,302
Risk Grades 5 - 6			62				—				123				—				93				—				—				278
Total			62				142				123				987				1,279				1,821				166				4,580

Consumer
Risk Grades 1 - 4			4,620				4,343				10,430				4,960				620				411				5,293				30,677
Risk Grades 5 - 6			—				138				190				326				48				18				—				720
Risk Grade 7			—				117				241				310				110				38				—				816
Total			4,620				4,598				10,861				5,596				778				467				5,293				32,213

Total Loans
Risk Grades 1 - 4		$	150,053			$	31,347			$	118,176			$	472,357			$	226,966			$	398,339			$	165,986			$	1,563,224
Risk Grades 5 - 6			3,487				1,377				6,868				103,785				36,487				66,794				6,640				225,438
Risk Grade 7			561				2,658				2,228				38,762				16,236				12,779				2,236				75,460
Risk Grade 8			—				—				—				—				—				390				—				390
Total		$	154,101			$	35,382			$	127,272			$	614,904			$	279,689			$	478,302			$	174,862			$	1,864,512

Summary of Change in the ACL by Loan Segment

The following tables present an analysis of the change in the ACL by loan segment for the periods stated.


		For the three months ended June 30, 2026
(Dollars in thousands)		Commercial and industrial				Real estate – construction, commercial				Real estate – construction, residential				Real estate – commercial				Real estate – residential				Real estate – farmland				Consumer				Total
ACL, beginning of period		$	3,846			$	655			$	208			$	6,276			$	7,602			$	12			$	585			$	19,184
Provision for (recovery of) credit losses - loans			3,365				175				46				9				(307	)			(1	)			213				3,500
Charge-offs			(1,845	)			—				(15	)			(304	)			(132	)			—				(381	)			(2,677	)
Recoveries			1,806				—				—				41				31				—				154				2,032
Net charge-offs			(39	)			—				(15	)			(263	)			(101	)			—				(227	)			(645	)
ACL, end of period		$	7,172			$	830			$	239			$	6,022			$	7,194			$	11			$	571			$	22,039

		For the three months ended June 30, 2025
(Dollars in thousands)		Commercial and industrial				Real estate – construction, commercial				Real estate – construction, residential				Real estate – commercial				Real estate – residential				Real estate – farmland				Consumer				Total
ACL, beginning of period		$	5,726			$	1,992			$	552			$	5,998			$	8,171			$	18			$	669			$	23,126
Provision for (recovery of) credit losses - loans			147				(720	)			(154	)			(119	)			(69	)			(3	)			218				(700	)
Charge-offs			(2,537	)			—				—				—				(107	)			—				(448	)			(3,092	)
Recoveries			2,510				—				—				—				6				—				124				2,640
Net charge-offs			(27	)			—				—				—				(101	)			—				(324	)			(452	)
ACL, end of period		$	5,846			$	1,272			$	398			$	5,879			$	8,001			$	15			$	563			$	21,974


		For the six months ended June 30, 2026
(Dollars in thousands)		Commercial and industrial				Real estate – construction, commercial				Real estate – construction, residential				Real estate – commercial				Real estate – residential				Real estate – farmland				Consumer				Total
ACL, beginning of period		$	4,337			$	678			$	264			$	5,959			$	7,655			$	14			$	537			$	19,444
Provision for (recovery of) credit losses - loans			2,393				152				(10	)			326				(361	)			(3	)			403				2,900
Charge-offs			(3,856	)			—				(15	)			(304	)			(132	)			—				(633	)			(4,940	)
Recoveries			4,298				—				—				41				32				—				264				4,635
Net recoveries (charge-offs)			442				—				(15	)			(263	)			(100	)			—				(369	)			(305	)
ACL, end of period		$	7,172			$	830			$	239			$	6,022			$	7,194			$	11			$	571			$	22,039

		For the six months ended June 30, 2025
(Dollars in thousands)		Commercial and industrial				Real estate – construction, commercial				Real estate – construction, residential				Real estate – commercial				Real estate – residential				Real estate – farmland				Consumer				Total
ACL, beginning of period		$	5,767			$	2,057			$	540			$	5,963			$	7,933			$	18			$	745			$	23,023
(Recovery of) provision for credit losses - loans			(42	)			(785	)			(142	)			(359	)			184				(3	)			447				(700	)
Charge-offs			(4,661	)			—				—				(63	)			(123	)			—				(1,035	)			(5,882	)
Recoveries			4,782				—				—				338				7				—				406				5,533
Net recoveries (charge-offs)			121				—				—				275				(116	)			—				(629	)			(349	)
ACL, end of period		$	5,846			$	1,272			$	398			$	5,879			$	8,001			$	15			$	563			$	21,974

Effective January 1, 2026

Summary of Amortized Cost of Collateral-Dependent Loans, Individually Evaluated for Credit Losses

The following table presents the amortized cost of collateral-dependent loans that were individually evaluated for credit losses as of the dates stated.


(Dollars in thousands)		June 30, 2026				December 31, 2025
Commercial and industrial		$	25,645			$	32,719
Real estate – commercial			7,399				38,940
Real estate – residential			5,386				5,567
Total collateral-dependent loans		$	38,430			$	77,226

The decline in collateral-dependent loans since December 31, 2025 was primarily attributable to the aforementioned change to the Bank's ACL policy effective January 1, 2026.

Summary of Amortized Cost of Loans Designated as TLMs

The following table presents the amortized cost of loans designated as TLMs, categorized by loan type and type of concession granted, for the periods stated.


		For the six months ended June 30,
		2026												2025
(Dollars in thousands)		Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category				Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category
Interest forgiven
Real estate – residential			—			$	—				0.00	%			1			$	141				0.02	%
Total interest forgiven			—			$	—								1			$	141

Term extension
Commercial and industrial			—			$	—				0.00	%			1			$	2,024				0.72	%
Total term extension			—			$	—								1			$	2,024

Payment deferral
Real estate – residential			2			$	1,502				0.24	%			—			$	—				0.00	%
Total payment deferral			2			$	1,502								—			$	—

Total			2			$	1,502								2			$	2,165

During the three months ended June 30, 2026 and 2025, no new loans were designated as TLMs.

The following table presents the amortized cost of loans designated as TLMs that were modified in the preceding twelve months and had a payment default during the periods stated.


		As of and for the six months ended June 30,
		2026												2025
(Dollars in thousands)		Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category				Number of Loans				Amortized Cost				% of Amortized Cost to Gross Loans by Category
Interest forgiveness
Real estate – residential			—			$	—				0.00	%			1			$	141				0.02	%
Total interest forgiveness			—			$	—								1				141

Payment deferral
Real estate – residential			2				1,502				0.24	%			1				491				0.08	%
Total payment deferral			2			$	1,502								1			$	491

Total			2			$	1,502								2			$	632

OREO

As of June 30, 2026 and December 31, 2025, OREO included a property with a carrying value of $1.4 million that served as collateral for a government guaranteed loan. The guaranteed portion of the loan (90%) is owned by the U.S. Small Business Administration ("SBA"), and the Company is obligated to remit to the SBA its share of the liquidation proceeds upon the sale of the property. Accordingly, the Company recorded a $1.2 million liability, reported in other liabilities on the Company's consolidated balance sheets as of both June 30, 2026 and December 31, 2025, representing the SBA's contractual interest in the expected proceeds from the sale of the property.

A

Summary of financial effects of TLMs

The following tables present additional information including the financial effects of TLMs as of and for the periods stated.


		As of and for the six months ended June 30, 2026
(Dollars in thousands)		Weighted Average Term Extension (Months)				Weighted Average Payment Deferral				Weighted Average Interest Forgiven
Real estate – residential			—			$	50			$	—


		As of and for the six months ended June 30, 2025
(Dollars in thousands)		Weighted Average Term Extension (Months)				Weighted Average Payment Deferral				Weighted Average Interest Forgiven
Commercial and industrial			20			$	—			$	—
Real estate – residential			—				—				50

Summary of Aging Analysis of Amortized Cost of Loans Designated as TLMs

The following tables present an aging analysis of the amortized cost of loans designated as TLMs as of the dates stated.


		June 30, 2026
(Dollars in thousands)		Current Loans				30-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total
Commercial and industrial		$	691			$	331			$	—			$	2,080			$	3,102
Real estate – commercial			490				—				—				—				490
Real estate – residential			479				—				—				1,867				2,346
Consumer			—				—				—				2				2
Total modified loans		$	1,660			$	331			$	—			$	3,949			$	5,940


		December 31, 2025
(Dollars in thousands)		Current Loans				30-89 Days Past Due				Greater than 90 Days Past Due & Accruing				Nonaccrual				Total
Commercial and industrial		$	2,270			$	—			$	—			$	2,310			$	4,580
Real estate – commercial			501				—				—				—				501
Real estate – residential			236				—				—				627				863
Consumer			—				—				—				6				6
Total modified loans		$	3,007			$	—			$	—			$	2,943			$	5,950