Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2026

Allowance for Credit Losses

Schedule of allowance for credit losses

Consumer

(Dollars in thousands)

Commercial

Consumer

Finance

Total

Balance at December 31, 2025

$

13,239

$

4,179

$

22,259

$

39,677

Provision charged to operations

247

53

5,800

6,100

Loans charged off

(101)

(101)

(8,493)

(8,695)

Recoveries of loans previously charged off

35

61

2,497

2,593

Balance at June 30, 2026

$

13,420

$

4,192

$

22,063

$

39,675


								Consumer
(Dollars in thousands)		Commercial			Consumer			Finance			Total
Balance at December 31, 2024		$	13,347		$	4,032		$	22,708		$	40,087
Provision charged to operations			(324)			174			5,300			5,150
Loans charged off			(20)			(116)			(7,719)			(7,855)
Recoveries of loans previously charged off			23			77			2,096			2,196
Balance at June 30, 2025		$	13,026		$	4,167		$	22,385		$	39,578

Schedule of breakdown of provision for credit losses


		Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)		2026			2025			2026			2025
Provision for credit losses:
Provision for loans		$	2,650		$	2,100		$	6,100		$	5,150
Provision for unfunded commitments			—			—			150			(50)
Total		$	2,650		$	2,100		$	6,250		$	5,100

Schedule of loans by credit quality indicators

The following table details the recorded balance of the classes of loans within the commercial and consumer loan portfolios by loan rating, which is reviewed on a quarterly basis, and year of origination as of June 30, 2026:


																				Revolving			Revolving
		Term Loans Recorded Balance by Origination Year																		Loans			Loans
																				Recorded			Converted
(Dollars in thousands)		2026			2025			2024			2023			2022			Prior			Balance			to Term¹			Total
Commercial real estate:
Loan Rating
Pass		$	63,921		$	72,316		$	132,094		$	144,995		$	162,386		$	343,442		$	—		$	249		$	919,403
Special Mention			—			—			—			—			—			69			—			—			69
Total		$	63,921		$	72,316		$	132,094		$	144,995		$	162,386		$	343,511		$	—		$	249		$	919,472

Commercial business:
Loan Rating
Pass		$	16,750		$	7,884		$	7,048		$	8,415		$	12,562		$	33,752		$	38,663		$	54		$	125,128
Special Mention			—			—			—			—			—			103			—			—			103
Total		$	16,750		$	7,884		$	7,048		$	8,415		$	12,562		$	33,855		$	38,663		$	54		$	125,231

Construction - commercial real estate:
Loan Rating
Pass		$	4,578		$	8,696		$	27,192		$	385		$	—		$	—		$	—		$	—		$	40,851
Total		$	4,578		$	8,696		$	27,192		$	385		$	—		$	—		$	—		$	—		$	40,851

Land acquisition and development:
Loan Rating
Pass		$	15,051		$	25,884		$	42,179		$	—		$	—		$	3,982		$	—		$	—		$	87,096
Total		$	15,051		$	25,884		$	42,179		$	—		$	—		$	3,982		$	—		$	—		$	87,096

Builder lines:
Loan Rating
Pass		$	13,738		$	13,517		$	4,505		$	266		$	550		$	—		$	—		$	—		$	32,576
Total		$	13,738		$	13,517		$	4,505		$	266		$	550		$	—		$	—		$	—		$	32,576

Construction - consumer real estate:
Loan Rating
Pass		$	7,310		$	21,392		$	3,313		$	—		$	—		$	—		$	—		$	—		$	32,015
Total		$	7,310		$	21,392		$	3,313		$	—		$	—		$	—		$	—		$	—		$	32,015

Residential mortgage:
Loan Rating
Pass		$	29,605		$	46,835		$	53,209		$	39,791		$	65,537		$	89,177		$	—		$	—		$	324,154
Special Mention			114			—			—			21			170			170			—			—			475
Substandard			—			—			—			—			—			59			—			—			59
Substandard Nonaccrual			—			—			161			800			74			76			—			—			1,111
Total		$	29,719		$	46,835		$	53,370		$	40,612		$	65,781		$	89,482		$	—		$	—		$	325,799

Equity lines:
Loan Rating
Pass		$	—		$	—		$	—		$	—		$	—		$	460		$	80,768		$	1,225		$	82,453
Special Mention			—			—			—			—			—			—			—			42			42
Total		$	—		$	—		$	—		$	—		$	—		$	460		$	80,768		$	1,267		$	82,495

Other consumer:
Loan Rating
Pass		$	3,427		$	3,588		$	1,851		$	929		$	473		$	254		$	42		$	—		$	10,564
Special Mention			31			—			—			—			—			—			—			—			31
Substandard Nonaccrual			9			41			—			—			12			—			—			—			62
Total		$	3,467		$	3,629		$	1,851		$	929		$	485		$	254		$	42		$	—		$	10,657

Total:
Loan Rating
Pass		$	154,380		$	200,112		$	271,391		$	194,781		$	241,508		$	471,067		$	119,473		$	1,528		$	1,654,240
Special Mention			145			—			—			21			170			342			—			42			720
Substandard			—			—			—			—			—			59			—			—			59
Substandard Nonaccrual			9			41			161			800			86			76			—			—			1,173
Total		$	154,534		$	200,153		$	271,552		$	195,602		$	241,764		$	471,544		$	119,473		$	1,570		$	1,656,192

1

Commercial business includes $0 and $18,000 of revolving loans converted to term during the three and six months ended June 30, 2026, respectively. Commercial real estate includes $126,000 of revolving loans converted to term during both the three and six months ended June 30, 2026. Equity lines include $387,000 and $554,000 of revolving loans converted to term during the three and six months ended June 30, 2026, respectively.

The following table details the recorded balance of the classes of loans within the commercial and consumer loan portfolios by loan rating, which is reviewed on a quarterly basis, and year of origination as of December 31, 2025:


																				Revolving			Revolving
		Term Loans Recorded Balance by Origination Year																		Loans			Loans
																				Recorded			Converted
(Dollars in thousands)		2025			2024			2023			2022			2021			Prior			Balance			to Term¹			Total
Commercial real estate:
Loan Rating
Pass		$	72,184		$	110,069		$	120,853		$	162,934		$	120,074		$	249,017		$	—		$	229		$	835,360
Special Mention			—			—			—			—			—			72			—			—			72
Total		$	72,184		$	110,069		$	120,853		$	162,934		$	120,074		$	249,089		$	—		$	229		$	835,432

Commercial business:
Loan Rating
Pass		$	9,557		$	7,623		$	10,169		$	13,091		$	11,841		$	26,507		$	36,875		$	47		$	115,710
Total		$	9,557		$	7,623		$	10,169		$	13,091		$	11,841		$	26,507		$	36,875		$	47		$	115,710

Construction - commercial real estate:
Loan Rating
Pass		$	10,384		$	54,141		$	31,892		$	3,187		$	—		$	—		$	—		$	—		$	99,604
Total		$	10,384		$	54,141		$	31,892		$	3,187		$	—		$	—		$	—		$	—		$	99,604

Land acquisition and development:
Loan Rating
Pass		$	18,966		$	41,178		$	—		$	371		$	—		$	5,733		$	—		$	—		$	66,248
Total		$	18,966		$	41,178		$	—		$	371		$	—		$	5,733		$	—		$	—		$	66,248

Builder lines:
Loan Rating
Pass		$	27,069		$	8,855		$	826		$	784		$	—		$	404		$	—		$	—		$	37,938
Total		$	27,069		$	8,855		$	826		$	784		$	—		$	404		$	—		$	—		$	37,938

Construction - consumer real estate:
Loan Rating
Pass		$	24,158		$	5,130		$	—		$	—		$	—		$	—		$	—		$	—		$	29,288
Total		$	24,158		$	5,130		$	—		$	—		$	—		$	—		$	—		$	—		$	29,288

Residential mortgage:
Loan Rating
Pass		$	44,390		$	57,382		$	46,606		$	71,350		$	33,087		$	64,871		$	—		$	—		$	317,686
Special Mention			—			—			22			84			202			347			—			—			655
Substandard			—			—			—			—			—			60			—			—			60
Substandard Nonaccrual			—			113			833			189			—			—			—			—			1,135
Total		$	44,390		$	57,495		$	47,461		$	71,623		$	33,289		$	65,278		$	—		$	—		$	319,536

Equity lines:
Loan Rating
Pass		$	—		$	—		$	—		$	—		$	—		$	493		$	75,165		$	701		$	76,359
Special Mention			—			—			—			—			—			—			—			101			101
Total		$	—		$	—		$	—		$	—		$	—		$	493		$	75,165		$	802		$	76,460

Other consumer:
Loan Rating
Pass		$	5,157		$	2,512		$	1,318		$	670		$	82		$	300		$	46		$	—		$	10,085
Total		$	5,157		$	2,512		$	1,318		$	670		$	82		$	300		$	46		$	—		$	10,085

Total:
Loan Rating
Pass		$	211,865		$	286,890		$	211,664		$	252,387		$	165,084		$	347,325		$	112,086		$	977		$	1,588,278
Special Mention			—			—			22			84			202			419			—			101			828
Substandard			—			—			—			—			—			60			—			—			60
Substandard Nonaccrual			—			113			833			189			—			—			—			—			1,135
Total		$	211,865		$	287,003		$	212,519		$	252,660		$	165,286		$	347,804		$	112,086		$	1,078		$	1,590,301

1

Commercial real estate and equity lines include $128,000 and $516,000, respectively, of revolving loans converted to term during the year ended December 31, 2025.

The following table details the recorded balance of the classes of loans within the consumer finance loan portfolio by credit rating at the time of origination and year of origination as of June 30, 2026:

Revolving

Term Loans Recorded Balance by Origination Year

Loans

Revolving

Converted

(Dollars in thousands)

 

2026

2025

2024

2023

2022

Prior

Loans

to Term

Total

Consumer finance - automobiles:

Credit rating¹

Very good

$

13,914

$

18,108

$

11,380

$

4,682

$

3,102

$

726

$

—

$

—

$

51,912

Good

26,906

39,605

23,013

13,014

13,101

3,259

—

—

118,898

Fairly good

25,859

41,949

24,388

18,251

16,906

6,557

—

—

133,910

Fair

13,580

26,124

15,460

10,884

10,165

5,379

—

—

81,592

Marginal

2,576

6,200

3,056

2,138

2,364

2,272

—

—

18,606

Total

$

82,835

$

131,986

$

77,297

$

48,969

$

45,638

$

18,193

$

—

$

—

$

404,918

Consumer finance - marine and recreational vehicles:

Credit rating¹

Very good

$

—

$

1,166

$

5,540

$

4,510

$

9,778

$

13,130

$

—

$

—

$

34,124

Good

—

1,296

3,392

5,219

5,057

2,224

—

—

17,188

Fairly good

—

—

—

132

168

67

—

—

367

Total

$

—

$

2,462

$

8,932

$

9,861

$

15,003

$

15,421

$

—

$

—

$

51,679

Total:

Credit rating¹

Very good

$

13,914

$

19,274

$

16,920

$

9,192

$

12,880

$

13,856

$

—

$

—

$

86,036

Good

26,906

40,901

26,405

18,233

18,158

5,483

—

—

136,086

Fairly good

25,859

41,949

24,388

18,383

17,074

6,624

—

—

134,277

Fair

13,580

26,124

15,460

10,884

10,165

5,379

—

—

81,592

Marginal

2,576

6,200

3,056

2,138

2,364

2,272

—

—

18,606

Total

$

82,835

$

134,448

$

86,229

$

58,830

$

60,641

$

33,614

$

—

$

—

$

456,597

1	Credit ratings with a FICO score greater than 739 are considered Very Good, FICO scores ranging from 670-739 are considered Good, FICO scores ranging from 625-669 are considered Fairly Good, FICO scores ranging from 580-624 are considered Fair and FICO scores less than 580 are considered Marginal.

The following table details the recorded balance of the classes of loans within the consumer finance loan portfolio by credit rating at the time of origination and year of origination as of December 31, 2025:


																							Revolving
		Term Loans Recorded Balance by Origination Year																					Loans
																				Revolving			Converted
(Dollars in thousands)		2025			2024			2023			2022			2021			Prior			Loans			to Term			Total
Consumer finance - automobiles:
Credit rating¹
Very good		$	22,600		$	14,758		$	6,212		$	4,543		$	1,123		$	111		$	—		$	—		$	49,347
Good			46,079			28,573			17,066			17,449			4,853			519			—			—			114,539
Fairly good			48,871			29,704			23,209			23,345			9,043			1,397			—			—			135,569
Fair			29,774			18,942			14,528			14,266			7,011			1,815			—			—			86,336
Marginal			6,960			3,751			2,893			3,243			2,626			1,048			—			—			20,521
Total		$	154,284		$	95,728		$	63,908		$	62,846		$	24,656		$	4,890		$	—		$	—		$	406,312

Consumer finance - marine and recreational vehicles:
Credit rating¹
Very good		$	1,339		$	6,231		$	4,999		$	10,700		$	6,473		$	8,789		$	—		$	—		$	38,531
Good			1,442			3,937			5,533			5,604			1,066			1,441			—			—			19,023
Fairly good			—			—			165			173			32			39			—			—			409
Total		$	2,781		$	10,168		$	10,697		$	16,477		$	7,571		$	10,269		$	—		$	—		$	57,963

Total:
Credit rating¹
Very good		$	23,939		$	20,989		$	11,211		$	15,243		$	7,596		$	8,900		$	—		$	—		$	87,878
Good			47,521			32,510			22,599			23,053			5,919			1,960			—			—			133,562
Fairly good			48,871			29,704			23,374			23,518			9,075			1,436			—			—			135,978
Fair			29,774			18,942			14,528			14,266			7,011			1,815			—			—			86,336
Marginal			6,960			3,751			2,893			3,243			2,626			1,048			—			—			20,521
Total		$	157,065		$	105,896		$	74,605		$	79,323		$	32,227		$	15,159		$	—		$	—		$	464,275

1	Credit ratings with a FICO score greater than 739 are considered Very Good, FICO scores ranging from 670-739 are considered Good, FICO scores ranging from 625-669 are considered Fairly Good, FICO scores ranging from 580-624 are considered Fair and FICO scores less than 580 are considered Marginal.

Schedule of current period gross charge-offs of loans by year of origination

The following table details the current period gross charge-offs of loans by year of origination for the six months ended June 30, 2026.


																							Revolving
		Current Period Gross Charge-offs by Origination Year																					Loans
																				Revolving			Converted
(Dollars in thousands)		2026			2025			2024			2023			2022			Prior			Loans			to Term			Total
Commercial business		$	—		$	99		$	—		$	—		$	—		$	2		$	—		$	—		$	101
Equity lines			—			—			—			5			—			6			—			—			11
Other consumer¹			78			5			7			—			—			—			—			—			90
Consumer finance - automobiles			33			1,292			1,663			2,244			2,170			831			—			—			8,233
Consumer finance - marine and recreational vehicles			—			—			95			58			95			12			—			—			260
Total		$	111		$	1,396		$	1,765		$	2,307		$	2,265		$	851		$	—		$	—		$	8,695

1	Gross charge-offs of other consumer loans for the six months ended June 30, 2026 included $78,000 of demand deposit overdrafts that originated in 2026.

The following table details the current period gross charge-offs of loans by year of origination for the six months ended June 30, 2025.


																							Revolving
		Current Period Gross Charge-offs by Origination Year																					Loans
																				Revolving			Converted
(Dollars in thousands)		2025			2024			2023			2022			2021			Prior			Loans			to Term			Total
Commercial business		$	—		$	—		$	—		$	—		$	10		$	10		$	—		$	—		$	20
Residential mortgage			6			—			—			—			—			—			—			—			6
Other consumer¹			96			10			4			—			—			—			—			—			110
Consumer finance - automobiles			71			1,238			1,968			2,777			1,062			350			—			—			7,466
Consumer finance - marine and recreational vehicles			—			56			13			152			10			22			—			—			253
Total		$	173		$	1,304		$	1,985		$	2,929		$	1,082		$	382		$	—		$	—		$	7,855

1	Gross charge-offs of other consumer loans for the six months ended June 30, 2025 included $96,000 of demand deposit overdrafts that originated in 2025.