v3.26.1
Loans and Credit Quality (Tables)
 6 Months Ended
Jun. 30, 2026
Loans and Credit Quality [Abstract]  
Composition of Loans Receivable

June 30, 2026

December 31, 2025

Percentage of

Percentage of

Balance

total Loans

Balance

total Loans

(Dollars in Thousands)

Commercial real estate

$

563,654

42.72%

$

564,829

43.78%

Commercial construction

11,563

0.88%

6,298

0.49%

Commercial

31,791

2.41%

30,824

2.39%

Residential real estate

711,878

53.96%

687,689

53.29%

Consumer

443

0.03%

620

0.05%

Total loans

1,319,329

100.00%

1,290,260

100.00%

Unearned origination fees

1,003

980

Allowance for credit losses

(12,456)

(12,039)

Net Loans

$

1,307,876

$

1,279,201
Schedule of Loan Portfolio by Origination Year
‎

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weakness), substandard (well defined weakness) and doubtful (full collection unlikely) within the Company's internal risk rating system as of June 30, 2026 by year of origination:

2026

2025

2024

2023

2022

Prior

Revolving

Total

(In Thousands)

Commercial

real estate

Pass

$

25,455

$

60,489

$

47,615

$

55,275

$

139,210

$

229,021

$

6,055

$

563,120

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

534

-

534

Total

25,455

60,489

47,615

55,275

139,210

229,555

6,055

563,654

Commercial

construction

Pass

447

9,975

-

1,061

-

25

-

11,508

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

55

55

Total

447

9,975

-

1,061

-

25

55

11,563

Commercial

Pass

6,831

4,074

3,980

1,003

1,671

7,825

6,241

31,625

Special Mention

-

-

-

-

-

14

-

14

Substandard

-

-

-

-

-

-

152

152

Total

6,831

4,074

3,980

1,003

1,671

7,839

6,393

31,791

Residential

real estate

Pass

66,482

78,920

61,910

46,540

74,619

347,942

33,682

710,095

Special Mention

-

-

57

-

-

511

-

568

Substandard

-

-

-

53

118

1,044

-

1,215

Total

66,482

78,920

61,967

46,593

74,737

349,497

33,682

711,878

Consumer

Pass

15

104

17

25

22

-

260

443

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Total

15

104

17

25

22

-

260

443

Total

Loans Receivable

$

99,230

$

153,562

$

113,579

$

103,957

$

215,640

$

586,916

$

46,445

$

1,319,329

The Company had gross charge-offs of $21 thousand during the six months ended June 30, 2026, respectively. The $21 thousand gross charge-offs for the six months ended June 30, 2026 was due to one (1) commercial loan charge-off of $6 thousand originated in 2014, one (1) consumer loan charge-off of $9 thousand originated in 2016, and one (1) consumer loan charge-off of $6 thousand originated in 2024.
‎

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weakness), substandard (well defined weakness) and doubtful (full collection unlikely) within the Company's internal risk rating system as of December 31, 2025 by year of origination:

2025

2024

2023

2022

2021

Prior

Revolving

Total

(In Thousands)

Commercial

real estate

Pass

$

61,483

$

48,975

$

57,134

$

141,938

$

49,261

$

199,960

$

5,524

$

564,275

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

554

-

554

Total

61,483

48,975

57,134

141,938

49,261

200,514

5,524

564,829

Commercial

construction

Pass

3,407

1,750

1,060

-

-

26

-

6,243

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

55

55

Total

3,407

1,750

1,060

-

-

26

55

6,298

Commercial

Pass

6,014

4,674

1,140

1,980

379

8,459

7,282

29,928

Special Mention

-

142

-

208

131

15

400

896

Substandard

-

-

-

-

-

-

-

-

Total

6,014

4,816

1,140

2,188

510

8,474

7,682

30,824

Residential

real estate

Pass

86,973

66,032

52,927

79,384

131,541

238,877

30,307

686,041

Special Mention

-

-

-

-

-

395

-

395

Substandard

-

-

56

125

579

493

-

1,253

Total

86,973

66,032

52,983

79,509

132,120

239,765

30,307

687,689

Consumer

Pass

147

36

32

33

2

-

370

620

Special Mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Total

147

36

32

33

2

-

370

620

Total

Loans Receivable

$

158,024

$

121,609

$

112,349

$

223,668

$

181,893

$

448,779

$

43,938

$

1,290,260
Schedule of Carrying Value and Related Allowance for Credit Losses of Individually Analyzed Loans
‎

The following table presents the carrying value and related allowance for credit losses of individually analyzed loans at June 30, 2026 and December 31, 2025, respectively:

.

June 30, 2026

December 31, 2025

Recorded Investment

Unpaid Principal Balance

Related Allowance for Credit Losses

Recorded Investment

Unpaid Principal Balance

Related Allowance for Credit Losses

(In Thousands)

With no related allowance recorded:

Commercial real estate (1)

$

534

$

534

$

554

$

554

Commercial construction (1)

55

55

55

55

Commercial

-

-

-

-

Residential real estate (1)

1,210

1,213

1,201

1,204

Consumer

-

-

-

-

With an allowance recorded:

Commercial real estate

$

-

$

-

$

-

$

-

$

-

$

-

Commercial construction

-

-

-

-

-

-

Commercial (2)

166

166

166

15

15

15

Residential real estate (1)

548

548

96

562

562

100

Consumer

-

-

-

-

-

-

Total:

Commercial real estate

$

534

$

534

$

-

$

554

$

554

$

-

Commercial construction

55

55

-

55

55

-

Commercial

166

166

166

15

15

15

Residential real estate

1,758

1,761

96

1,763

1,766

100

Consumer

-

-

-

-

-

-

$

2,513

$

2,516

$

262

$

2,387

$

2,390

$

115

1.All loans are real estate collateral dependent.

2.All loans are non-collateral dependent loans.
Schedule of Nonaccrual Loans

June 30, 2026

December 31, 2025

(In Thousands)

Commercial real estate

$

-

$

-

Commercial construction

-

-

Commercial

152

-

Residential real estate

516

482

Consumer

-

-

Total

$

668

$

482
Schedule of Past Due Loans

Greater

Loan

than

Receivables >

30-59 Days

60-89 Days

90 Days

Total

Total Loan

90 Days and

Past Due

Past Due

Past Due

Past Due

Current

Receivables

Accruing

June 30, 2026

(In Thousands)

Commercial real estate

$

-

$

-

$

-

$

-

$

563,654

$

563,654

$

-

Commercial construction

-

-

-

-

11,563

11,563

-

Commercial

-

596

152

748

31,043

31,791

-

Residential real estate

964

11

175

1,150

710,728

711,878

-

Consumer

-

-

-

-

443

443

-

Total

$

964

$

607

$

327

$

1,898

$

1,317,431

$

1,319,329

$

-

December 31, 2025

Commercial real estate

$

-

$

-

$

-

$

-

$

564,829

$

564,829

$

-

Commercial construction

-

-

-

-

6,298

6,298

-

Commercial

6

-

-

6

30,818

30,824

-

Residential real estate

432

246

-

678

687,011

687,689

-

Consumer

-

6

-

6

614

620

-

Total

$

438

$

252

$

-

$

690

$

1,289,570

$

1,290,260

$

-
Activity in Allowance for Loan Losses

Commercial Real Estate

Commercial Construction

Commercial

Residential Real Estate

Consumer

Total

Allowance for credit losses

(In Thousands)

Three Months Ending June 30, 2026

Beginning Balance - March 31, 2026

$

5,943 

$

100 

$

470 

$

5,552 

$

31 

$

12,096 

Charge-offs

-

-

-

-

(15)

(15)

Recoveries

-

-

-

-

-

-

Provisions on loans

29 

18 

148 

166 

14 

375 

Ending Balance - June 30, 2026

$

5,972 

$

118 

$

618 

$

5,718 

$

30 

$

12,456 

Six Months Ending June 30, 2026

Beginning Balance - December 31, 2025

$

5,963 

$

64 

$

455 

$

5,530 

$

27 

$

12,039 

Charge-offs

-

-

(6)

-

(15)

(21)

Recoveries

-

-

-

-

-

-

Provisions on loans

9 

54 

169 

188 

18 

438 

Ending Balance - June 30, 2026

$

5,972 

$

118 

$

618 

$

5,718 

$

30 

$

12,456 

Allowance for credit losses

Three Months Ending June 30, 2025

Beginning Balance - March 31, 2025

$

5,985 

$

247 

$

527 

$

5,433 

$

30 

$

12,222 

Charge-offs

(136)

-

(15)

-

(1)

(152)

Recoveries

-

-

-

-

-

-

Provisions (credits) on loans

(56)

(53)

(51)

1 

(6)

(165)

Ending Balance - June 30, 2025

$

5,793 

$

194 

$

461 

$

5,434 

$

23 

$

11,905 

Six Months Ending June 30, 2025

Beginning Balance - December 31, 2024

$

5,897 

$

257 

$

536 

$

5,446 

$

30 

$

12,166 

Charge-offs

(136)

-

(15)

-

(1)

(152)

Recoveries

-

-

-

-

-

-

Provisions (credits) on loans

32 

(63)

(60)

(12)

(6)

(109)

Ending Balance - June 30, 2025

$

5,793 

$

194 

$

461 

$

5,434 

$

23 

$

11,905 
Allocation of Allowance for Loan Losses and Related Loan Portfolio

Commercial Real Estate

Commercial Construction

Commercial

Residential Real Estate

Consumer

Total

(In Thousands)

June 30, 2026

Allowance for Credit Losses

Ending Balance

$

5,972

$

118

$

618

$

5,718

$

30

$

12,456

Ending balance: individually evaluated for impairment - real estate collateral dependent

$

-

$

-

$

-

$

96

$

-

$

96

Ending balance: individually evaluated for impairment - non-collateral dependent

$

-

$

-

$

166

$

-

$

-

$

166

Ending balance: collectively evaluated for impairment

$

5,972

$

118

$

452

$

5,622

$

30

$

12,194

Loans Receivable

Ending balance

$

563,654

$

11,563

$

31,791

$

711,878

$

443

$

1,319,329

Ending balance: individually evaluated for impairment - real estate collateral dependent

$

534

$

55

$

-

$

1,758

$

-

$

2,347

Ending balance: individually evaluated for impairment - non-collateral dependent

$

-

$

-

$

166

$

-

$

-

$

166

Ending balance: collectively evaluated for impairment

$

563,120

$

11,508

$

31,625

$

710,120

$

443

$

1,316,816

December 31, 2025

Allowance for Credit Losses

Ending Balance

$

5,963

$

64

$

455

$

5,530

$

27

$

12,039

Ending balance: individually evaluated for impairment - real estate collateral dependent

$

-

$

-

$

-

$

100

$

-

$

100

Ending balance: individually evaluated for impairment - non-collateral dependent

$

-

$

-

$

15

$

-

$

-

$

15

Ending balance: collectively evaluated for impairment

$

5,963

$

64

$

440

$

5,430

$

27

$

11,924

Loans Receivable

Ending balance

$

564,829

$

6,298

$

30,824

$

687,689

$

620

$

1,290,260

Ending balance: individually evaluated for impairment - real estate collateral dependent

$

554

$

55

$

-

$

1,763

$

-

$

2,372

Ending balance: individually evaluated for impairment - non-collateral dependent

$

-

$

-

$

15

$

-

$

-

$

15

Ending balance: collectively evaluated for impairment

$

564,275

$

6,243

$

30,809

$

685,926

$

620

$

1,287,873