| Allowance for Credit Losses |
Note 7: Allowance for Credit Losses Management extensively reviews recent trends in historical losses, qualitative factors, including concentrations of loans to related borrowers and concentrations of loans by collateral type, and specific reserve requirements on loans individually evaluated in its determination of the adequacy of the allowance for credit losses. PCL was a benefit of $155,000 for the three month period ended June 30, 2026, as compared to a $1.2 million PCL expense for the three month period ended June 30, 2025. For the first six months of 2026, the Company recorded a PCL benefit of $323,000, as compared to a $1.7 million PCL expense in the first six months of the prior year. PCL decreased $1.4 million for the three months ended June 30, 2026 compared to the same period in 2025. During the second quarter of 2026, the Company recorded a $182,000 reduction in reserves related to its loan portfolio and a $22,000 reduction in reserves related to held-to-maturity securities, partially offset by a $49,000 increase in reserves for unfunded commitments. The net benefit recorded during the quarter was primarily influenced by the level of average loans outstanding in the period and the risk-based reserve build undertaken in the second half of 2025 to absorb future loss resolution activity related to commercial IALs. The following tables summarize the activity related to the ACL as of and for the three and six months ended June 30, 2026 and 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
(Dollars in thousands) |
|
Reserves as of March 31, 2026 |
|
|
Q2 2026 Charge-Offs |
|
|
Q2 2026 Recoveries |
|
|
Q2 2026 PCL |
|
|
Reserves as of June 30, 2026 |
|
Individually evaluated |
|
$ |
18,472 |
|
|
$ |
(1,604 |
) |
|
$ |
18 |
|
|
$ |
(199 |
) |
|
$ |
16,687 |
|
Collectively evaluated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdraft |
|
|
- |
|
|
|
(29 |
) |
|
|
5 |
|
|
|
24 |
|
|
|
- |
|
Pooled - quantitative |
|
|
9,274 |
|
|
|
(146 |
) |
|
|
32 |
|
|
|
4 |
|
|
|
9,164 |
|
Pooled - qualitative |
|
|
(1,229 |
) |
|
|
- |
|
|
|
- |
|
|
|
(11 |
) |
|
|
(1,240 |
) |
Purchased |
|
|
2,449 |
|
|
|
(383 |
) |
|
|
243 |
|
|
|
- |
|
|
|
2,309 |
|
Total ACL - Loans |
|
$ |
28,966 |
|
|
$ |
(2,162 |
) |
|
$ |
298 |
|
|
$ |
(182 |
) |
|
$ |
26,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL - Held-To-Maturity Securities |
|
|
176 |
|
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
|
|
154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities - Unfunded Commitments |
|
|
588 |
|
|
|
- |
|
|
|
- |
|
|
|
49 |
|
|
|
637 |
|
Total ACL |
|
$ |
29,730 |
|
|
$ |
(2,162 |
) |
|
$ |
298 |
|
|
$ |
(155 |
) |
|
$ |
27,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
(Dollars in thousands) |
|
Reserves as of March 31, 2025 |
|
|
Q2 2025 Charge-Offs |
|
|
Q2 2025 Recoveries |
|
|
Q2 2025 PCL |
|
|
Reserves as of June 30, 2025 |
|
Individually evaluated |
|
$ |
2,490 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(151 |
) |
|
$ |
2,339 |
|
Collectively evaluated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdraft |
|
|
- |
|
|
|
(28 |
) |
|
|
10 |
|
|
|
18 |
|
|
|
- |
|
Pooled - quantitative |
|
|
6,638 |
|
|
|
(2,371 |
) |
|
|
54 |
|
|
|
2,217 |
|
|
|
6,538 |
|
Pooled - qualitative |
|
|
4,428 |
|
|
|
- |
|
|
|
- |
|
|
|
(911 |
) |
|
|
3,517 |
|
Purchased |
|
|
3,851 |
|
|
|
(445 |
) |
|
|
183 |
|
|
|
- |
|
|
|
3,589 |
|
Total ACL - Loans |
|
$ |
17,407 |
|
|
$ |
(2,844 |
) |
|
$ |
247 |
|
|
$ |
1,173 |
|
|
$ |
15,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL - Held-To-Maturity Securities |
|
|
257 |
|
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
|
262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities - Unfunded Commitments |
|
|
503 |
|
|
|
- |
|
|
|
- |
|
|
|
19 |
|
|
|
522 |
|
Total ACL |
|
$ |
18,167 |
|
|
$ |
(2,844 |
) |
|
$ |
247 |
|
|
$ |
1,197 |
|
|
$ |
16,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
(Dollars in thousands) |
|
Reserves as of December 31, 2025 |
|
|
2026 Charge-Offs |
|
|
2026 Recoveries |
|
|
2026 PCL |
|
|
Reserves as of June 30, 2026 |
|
Individually evaluated |
|
$ |
18,142 |
|
|
$ |
(1,725 |
) |
|
$ |
18 |
|
|
$ |
252 |
|
|
$ |
16,687 |
|
Collectively evaluated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdraft |
|
|
- |
|
|
|
(66 |
) |
|
|
11 |
|
|
|
55 |
|
|
|
- |
|
Pooled - quantitative |
|
|
8,336 |
|
|
|
(353 |
) |
|
|
448 |
|
|
|
733 |
|
|
|
9,164 |
|
Pooled - qualitative |
|
|
168 |
|
|
|
- |
|
|
|
- |
|
|
|
(1,408 |
) |
|
|
(1,240 |
) |
Purchased |
|
|
2,790 |
|
|
|
(783 |
) |
|
|
302 |
|
|
|
- |
|
|
|
2,309 |
|
Total ACL - Loans |
|
|
29,436 |
|
|
|
(2,927 |
) |
|
|
779 |
|
|
|
(368 |
) |
|
|
26,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL - Held-To-Maturity Securities |
|
|
176 |
|
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
|
|
154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities - Unfunded Commitments |
|
|
570 |
|
|
|
- |
|
|
|
- |
|
|
|
67 |
|
|
|
637 |
|
Total ACL |
|
$ |
30,182 |
|
|
$ |
(2,927 |
) |
|
$ |
779 |
|
|
$ |
(323 |
) |
|
$ |
27,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
(Dollars in thousands) |
|
Reserves as of December 31, 2024 |
|
|
2025 Charge-Offs |
|
|
2025 Recoveries |
|
|
2025 PCL |
|
|
Reserves as of June 30, 2025 |
|
Individually evaluated |
|
$ |
2,485 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(146 |
) |
|
$ |
2,339 |
|
Collectively evaluated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overdraft |
|
|
- |
|
|
|
(66 |
) |
|
|
19 |
|
|
|
47 |
|
|
|
- |
|
Pooled - quantitative |
|
|
6,570 |
|
|
|
(2,634 |
) |
|
|
74 |
|
|
|
2,528 |
|
|
|
6,538 |
|
Pooled - qualitative |
|
|
4,269 |
|
|
|
- |
|
|
|
- |
|
|
|
(752 |
) |
|
|
3,517 |
|
Purchased |
|
|
3,919 |
|
|
|
(652 |
) |
|
|
322 |
|
|
|
- |
|
|
|
3,589 |
|
Total ACL - Loans |
|
$ |
17,243 |
|
|
$ |
(3,352 |
) |
|
$ |
415 |
|
|
$ |
1,677 |
|
|
$ |
15,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL - Held-To-Maturity Securities |
|
|
257 |
|
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
|
262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities - Unfunded Commitments |
|
|
550 |
|
|
|
- |
|
|
|
- |
|
|
|
(28 |
) |
|
|
522 |
|
Total ACL |
|
$ |
18,050 |
|
|
$ |
(3,352 |
) |
|
$ |
415 |
|
|
$ |
1,654 |
|
|
$ |
16,767 |
|
Summarized in the tables below are changes in the ACL for loans for the indicated periods and information pertaining to the allocation of the balances of the credit losses, loans receivable based on individual, and collective evaluation by loan portfolio class. An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended June 30, 2026 |
|
(In thousands) |
|
1-4 family first-lien residential mortgage |
|
|
Residential construction mortgage |
|
|
Commercial real estate |
|
|
Commercial lines of credit |
|
|
Other commercial and industrial |
|
|
Paycheck Protection Program |
|
|
Tax exempt |
|
|
Home equity & junior liens |
|
|
Other consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
1,890 |
|
|
$ |
678 |
|
|
$ |
11,760 |
|
|
$ |
2,729 |
|
|
$ |
8,810 |
|
|
$ |
- |
|
|
$ |
5 |
|
|
$ |
587 |
|
|
$ |
2,507 |
|
|
$ |
28,966 |
|
Charge-offs |
|
|
- |
|
|
|
- |
|
|
|
(1,584 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(48 |
) |
|
|
(530 |
) |
|
|
(2,162 |
) |
Recoveries |
|
|
1 |
|
|
|
- |
|
|
|
22 |
|
|
|
1 |
|
|
|
12 |
|
|
|
- |
|
|
|
- |
|
|
|
89 |
|
|
|
173 |
|
|
|
298 |
|
Provisions (credits) |
|
|
5 |
|
|
|
(146 |
) |
|
|
1,176 |
|
|
|
356 |
|
|
|
(1,747 |
) |
|
|
- |
|
|
|
(2 |
) |
|
|
82 |
|
|
|
94 |
|
|
|
(182 |
) |
Ending balance |
|
$ |
1,896 |
|
|
$ |
532 |
|
|
$ |
11,374 |
|
|
$ |
3,086 |
|
|
$ |
7,075 |
|
|
$ |
- |
|
|
$ |
3 |
|
|
$ |
710 |
|
|
$ |
2,244 |
|
|
$ |
26,920 |
|
Ending balance: related to loans
individually evaluated |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,223 |
|
|
$ |
2,940 |
|
|
$ |
6,287 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
237 |
|
|
$ |
- |
|
|
$ |
16,687 |
|
Ending balance: related to loans
collectively evaluated |
|
$ |
1,896 |
|
|
$ |
532 |
|
|
$ |
4,151 |
|
|
$ |
146 |
|
|
$ |
788 |
|
|
$ |
- |
|
|
$ |
3 |
|
|
$ |
473 |
|
|
$ |
2,244 |
|
|
$ |
10,233 |
|
Loans receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance, gross |
|
$ |
233,501 |
|
|
$ |
1,242 |
|
|
$ |
388,154 |
|
|
$ |
77,886 |
|
|
$ |
75,987 |
|
|
$ |
41 |
|
|
$ |
2,512 |
|
|
$ |
53,219 |
|
|
$ |
57,232 |
|
|
$ |
889,774 |
|
Ending balance: individually
evaluated |
|
$ |
819 |
|
|
$ |
- |
|
|
$ |
52,308 |
|
|
$ |
9,367 |
|
|
$ |
15,551 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
599 |
|
|
$ |
- |
|
|
$ |
78,644 |
|
Ending balance: collectively
evaluated |
|
$ |
232,682 |
|
|
$ |
1,242 |
|
|
$ |
335,846 |
|
|
$ |
68,519 |
|
|
$ |
60,436 |
|
|
$ |
41 |
|
|
$ |
2,512 |
|
|
$ |
52,620 |
|
|
$ |
57,232 |
|
|
$ |
811,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended June 30, 2025 |
|
(In thousands) |
|
1-4 family first-lien residential mortgage |
|
|
Residential construction mortgage |
|
|
Commercial real estate |
|
|
Commercial lines of credit |
|
|
Other commercial and industrial |
|
|
Paycheck Protection Program |
|
|
Tax exempt |
|
|
Home equity & junior liens |
|
|
Other consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
1,433 |
|
|
$ |
504 |
|
|
$ |
7,079 |
|
|
$ |
911 |
|
|
$ |
2,848 |
|
|
$ |
- |
|
|
$ |
2 |
|
|
$ |
694 |
|
|
$ |
3,936 |
|
|
$ |
17,407 |
|
Charge-offs |
|
|
(12 |
) |
|
|
- |
|
|
|
(868 |
) |
|
|
(195 |
) |
|
|
(1,243 |
) |
|
|
- |
|
|
|
- |
|
|
|
(25 |
) |
|
|
(501 |
) |
|
|
(2,844 |
) |
Recoveries |
|
|
1 |
|
|
|
- |
|
|
|
11 |
|
|
|
17 |
|
|
|
8 |
|
|
|
- |
|
|
|
- |
|
|
|
47 |
|
|
|
163 |
|
|
|
247 |
|
Provisions (credits) |
|
|
(80 |
) |
|
|
39 |
|
|
|
174 |
|
|
|
19 |
|
|
|
1,058 |
|
|
|
- |
|
|
|
1 |
|
|
|
(53 |
) |
|
|
15 |
|
|
|
1,173 |
|
Ending balance |
|
$ |
1,342 |
|
|
$ |
543 |
|
|
$ |
6,396 |
|
|
$ |
752 |
|
|
$ |
2,671 |
|
|
$ |
- |
|
|
$ |
3 |
|
|
$ |
663 |
|
|
$ |
3,613 |
|
|
$ |
15,983 |
|
Ending balance: related to loans
individually evaluated |
|
$ |
135 |
|
|
$ |
- |
|
|
$ |
810 |
|
|
$ |
71 |
|
|
$ |
1,098 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
180 |
|
|
$ |
- |
|
|
$ |
2,294 |
|
Ending balance: related to loans
collectively evaluated |
|
$ |
1,207 |
|
|
$ |
543 |
|
|
$ |
5,586 |
|
|
$ |
681 |
|
|
$ |
1,573 |
|
|
$ |
- |
|
|
$ |
3 |
|
|
$ |
483 |
|
|
$ |
3,613 |
|
|
$ |
13,689 |
|
Loans receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance, gross |
|
$ |
240,833 |
|
|
$ |
3,520 |
|
|
$ |
381,575 |
|
|
$ |
75,487 |
|
|
$ |
85,578 |
|
|
$ |
85 |
|
|
$ |
6,349 |
|
|
$ |
49,339 |
|
|
$ |
68,439 |
|
|
$ |
911,205 |
|
Ending balance: individually
evaluated |
|
$ |
1,903 |
|
|
$ |
- |
|
|
$ |
5,160 |
|
|
$ |
974 |
|
|
$ |
3,567 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
529 |
|
|
$ |
- |
|
|
$ |
12,133 |
|
Ending balance: collectively
evaluated |
|
$ |
238,930 |
|
|
$ |
3,520 |
|
|
$ |
376,415 |
|
|
$ |
74,513 |
|
|
$ |
82,011 |
|
|
$ |
85 |
|
|
$ |
6,349 |
|
|
$ |
48,810 |
|
|
$ |
68,439 |
|
|
$ |
899,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the six months ended June 30, 2026 |
|
(In thousands) |
|
1-4 family first-lien residential mortgage |
|
|
Residential construction mortgage |
|
|
Commercial real estate |
|
|
Commercial lines of credit |
|
|
Other commercial and industrial |
|
|
Tax exempt |
|
|
Home equity and junior liens |
|
|
Other consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
2,141 |
|
|
$ |
474 |
|
|
$ |
10,580 |
|
|
$ |
3,698 |
|
|
$ |
9,064 |
|
|
$ |
5 |
|
|
$ |
705 |
|
|
$ |
2,769 |
|
|
$ |
29,436 |
|
Charge-offs |
|
|
(13 |
) |
|
|
- |
|
|
|
(1,600 |
) |
|
|
(96 |
) |
|
|
(126 |
) |
|
|
- |
|
|
|
(144 |
) |
|
|
(948 |
) |
|
|
(2,927 |
) |
Recoveries |
|
|
3 |
|
|
|
- |
|
|
|
387 |
|
|
|
2 |
|
|
|
27 |
|
|
|
- |
|
|
|
90 |
|
|
|
270 |
|
|
|
779 |
|
Provisions (credits) |
|
|
(235 |
) |
|
|
58 |
|
|
|
2,007 |
|
|
|
(518 |
) |
|
|
(1,890 |
) |
|
|
(2 |
) |
|
|
59 |
|
|
|
153 |
|
|
|
(368 |
) |
Ending balance |
|
$ |
1,896 |
|
|
$ |
532 |
|
|
$ |
11,374 |
|
|
$ |
3,086 |
|
|
$ |
7,075 |
|
|
$ |
3 |
|
|
$ |
710 |
|
|
$ |
2,244 |
|
|
$ |
26,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the six months ended June 30, 2025 |
|
(In thousands) |
|
1-4 family first-lien residential mortgage |
|
|
Residential construction mortgage |
|
|
Commercial real estate |
|
|
Commercial lines of credit |
|
|
Other commercial and industrial |
|
|
Tax exempt |
|
|
Home equity and junior liens |
|
|
Other consumer |
|
|
Total |
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
1,467 |
|
|
$ |
592 |
|
|
$ |
6,746 |
|
|
$ |
749 |
|
|
$ |
2,879 |
|
|
$ |
4 |
|
|
$ |
715 |
|
|
$ |
4,091 |
|
|
$ |
17,243 |
|
Charge-offs |
|
|
(12 |
) |
|
|
- |
|
|
|
(868 |
) |
|
|
(287 |
) |
|
|
(1,323 |
) |
|
|
- |
|
|
|
(24 |
) |
|
|
(837 |
) |
|
|
(3,351 |
) |
Recoveries |
|
|
4 |
|
|
|
- |
|
|
|
13 |
|
|
|
17 |
|
|
|
11 |
|
|
|
- |
|
|
|
47 |
|
|
|
322 |
|
|
|
414 |
|
Provisions (credits) |
|
|
(117 |
) |
|
|
(49 |
) |
|
|
505 |
|
|
|
273 |
|
|
|
1,104 |
|
|
|
(1 |
) |
|
|
(75 |
) |
|
|
37 |
|
|
|
1,677 |
|
Ending balance |
|
$ |
1,342 |
|
|
$ |
543 |
|
|
$ |
6,396 |
|
|
$ |
752 |
|
|
$ |
2,671 |
|
|
$ |
3 |
|
|
$ |
663 |
|
|
$ |
3,613 |
|
|
$ |
15,983 |
|
The Company’s methodology for determining its ACL includes an analysis of qualitative factors that are added to the historical loss rates in arriving at the total ACL needed for collectively evaluated loans. The qualitative factors include, but are not limited to, the following: •Changes in national and local economic trends; •The rate of growth in the portfolio; •Trends of delinquencies and nonaccrual balances; •Changes in loan policy; and •Changes in lending management experience and related staffing. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. These qualitative factors, applied to each loan class, make the evaluation inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the ACL analysis and calculation. The allocation of the ACL summarized on the basis of the Company’s calculation methodology was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2026 |
|
(In thousands) |
|
1-4 family first-lien residential mortgage |
|
|
Residential construction mortgage |
|
|
Commercial real estate |
|
|
Commercial lines of credit |
|
|
Other commercial and industrial |
|
|
Tax exempt |
|
|
Home equity and junior liens |
|
|
Other consumer |
|
|
Total |
|
Specifically reserved |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,223 |
|
|
$ |
2,940 |
|
|
$ |
6,287 |
|
|
$ |
- |
|
|
$ |
473 |
|
|
$ |
2,073 |
|
|
|
18,996 |
|
Historical loss rate |
|
|
2,148 |
|
|
|
581 |
|
|
|
4,884 |
|
|
|
173 |
|
|
|
927 |
|
|
|
3 |
|
|
|
275 |
|
|
|
173 |
|
|
|
9,164 |
|
Qualitative factors |
|
|
(252 |
) |
|
|
(49 |
) |
|
|
(733 |
) |
|
|
(27 |
) |
|
|
(139 |
) |
|
|
- |
|
|
|
(38 |
) |
|
|
(2 |
) |
|
|
(1,240 |
) |
Total |
|
$ |
1,896 |
|
|
$ |
532 |
|
|
$ |
11,374 |
|
|
$ |
3,086 |
|
|
$ |
7,075 |
|
|
$ |
3 |
|
|
$ |
710 |
|
|
$ |
2,244 |
|
|
$ |
26,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
(In thousands) |
|
1-4 family first-lien residential mortgage |
|
|
Residential construction mortgage |
|
|
Commercial real estate |
|
|
Commercial lines of credit |
|
|
Other commercial and industrial |
|
|
Tax exempt |
|
|
Home equity and junior liens |
|
|
Other consumer |
|
|
Total |
|
Specifically reserved |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
6,523 |
|
|
$ |
3,519 |
|
|
$ |
7,913 |
|
|
$ |
- |
|
|
$ |
394 |
|
|
$ |
2,583 |
|
|
$ |
20,932 |
|
Historical loss rate |
|
|
2,332 |
|
|
|
474 |
|
|
|
3,858 |
|
|
|
165 |
|
|
|
1,038 |
|
|
|
5 |
|
|
|
296 |
|
|
|
168 |
|
|
|
8,336 |
|
Qualitative factors |
|
|
(191 |
) |
|
|
- |
|
|
|
199 |
|
|
|
14 |
|
|
|
113 |
|
|
|
- |
|
|
|
15 |
|
|
|
18 |
|
|
|
168 |
|
Total |
|
$ |
2,141 |
|
|
$ |
474 |
|
|
$ |
10,580 |
|
|
$ |
3,698 |
|
|
$ |
9,064 |
|
|
$ |
5 |
|
|
$ |
705 |
|
|
$ |
2,769 |
|
|
$ |
29,436 |
|
Collateral Dependent Loans The Company has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans: •Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by office buildings and complexes, retail facilities, multifamily complexes, land under development, industrial properties, as well as other commercial or industrial real estate. •Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage. •Home equity lines of credit are generally secured by second mortgages on residential real estate property. •Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral. The following table details the amortized cost of collateral dependent loans at June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
(In thousands) |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Commercial and industrial |
|
$ |
24,918 |
|
|
$ |
34,182 |
|
Commercial real estate |
|
|
52,308 |
|
|
|
54,008 |
|
Residential (1-4 family) first mortgages |
|
|
819 |
|
|
|
613 |
|
Home equity loans and lines of credit |
|
|
599 |
|
|
|
599 |
|
Consumer loans |
|
|
- |
|
|
|
- |
|
Total loans |
|
$ |
78,644 |
|
|
$ |
89,402 |
|
|