v3.26.1
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 6 Months Ended
Jun. 30, 2026
LOANS AND ALLOWANCE FOR CREDIT LOSSES [Abstract]  
Portfolio Loans
Loans are comprised of the following:
 
  June 30,   December 31, 
  2026   2025 
        
Residential real estate$436,933  $417,920 
Commercial real estate:       
Owner-occupied 113,909   114,724 
Nonowner-occupied 301,616   269,285 
Construction 92,223   86,028 
Commercial and industrial 165,867   167,099 
Consumer:       
Automobile 31,865   37,277 
Home equity 54,806   50,605 
Other 48,895   53,080 
  1,246,114   1,196,018 
Less:  Allowance for credit losses (16,610)   (11,519) 
        
Loans, net$1,229,504  $1,184,499 
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans
The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of June 30, 2026 and December 31, 2025:
 
  Loans Past Due    Nonaccrual    Nonaccrual    Total 
  90 Days And   Loans With No   Loans With an   Nonaccrual 
June 30, 2026 Still Accruing   ACL   ACL   Loans 
           
Residential real estate$37  $-  $2,093  $2,093 
Commercial real estate:               
Owner-occupied -   4,895   217   5,112 
Nonowner-occupied -   2,164   6,193   8,357 
Construction 676   -   -   - 
Commercial and industrial -   912   92   1,004 
Consumer:               
Automobile 56   -   230   230 
Home equity -   24   275   299 
Other 19   -   77   77 
Total$788  $7,995  $9,177  $17,172 
 
  Loans Past Due    Nonaccrual    Nonaccrual    Total 
  90 Days And   Loans With No   Loans With an   Nonaccrual 
December 31, 2025 Still Accruing   ACL   ACL   Loans 
           
Residential real estate$-  $324  $1,758  $2,082 
Commercial real estate:           
Owner-occupied -   679   -   679 
Nonowner-occupied -   4,956   214   5,170 
Construction -   6,000   -   6,000 
Commercial and industrial 1,171   942   8   950 
Consumer:           
Automobile 75   -   172   172 
Home equity -   24   294   318 
Other 12   -   103   103 
Total$1,258  $12,925  $2,549  $15,474 
Aging of Recorded Investment in Past Due Loans by Class of Loans
The following table presents the aging of the recorded investment of past due loans by class of loans as of June 30, 2026 and December 31, 2025:
 
  30-59    60-89    90 Days              
  Days    Days    Or More    Total    Loans Not      
June 30, 2026 Past Due   Past Due   Past Due   Past Due   Past Due   Total 
                 
Residential real estate$3,123  $1,542  $895  $5,560  $431,373  $436,933 
Commercial real estate:                       
Owner-occupied -   201   5,111   5,312   108,597   113,909 
Nonowner-occupied 71   -   6,000   6,071   295,545   301,616 
Construction -   -   676   676   91,547   92,223 
Commercial and industrial 85   -   999   1,084   164,783   165,867 
Consumer:                       
Automobile 686   217   200   1,103   30,762   31,865 
Home equity 381   153   237   771   54,035   54,806 
Other 378   154   76   608   48,287   48,895 
Total$4,724  $2,267  $14,194  $21,185  $1,224,929  $1,246,114 
 
  30-59    60-89    90 Days              
  Days    Days    Or More    Total    Loans Not      
December 31, 2025 Past Due   Past Due   Past Due   Past Due   Past Due   Total 
                 
Residential real estate$4,656  $1,523  $570  $6,749  $411,171  $417,920 
Commercial real estate:                 
Owner-occupied 672   4,711   679   6,062   108,662   114,724 
Nonowner-occupied -   -   -   -   269,285   269,285 
Construction -   -   6,000   6,000   80,028   86,028 
Commercial and industrial 248   35   2,113   2,396   164,703   167,099 
Consumer:                - 
Automobile 918   327   122   1,367   35,910   37,277 
Home equity 194   64   149   407   50,198   50,605 
Other 581   225   52   858   52,222   53,080 
Total$7,269  $6,885  $9,685  $23,839  $1,172,179  $1,196,018 
Risk Category Loans by Class of Loans
As of June 30, 2026 and December 31, 2025, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                                
Commercial real estate:                               
Owner-occupied                                
Risk Rating                               
Pass$4,139  $34,073  $12,914  $15,568  $6,393  $29,961  $3,675  $106,723 
Special Mention 2,075   -   -   -   -   -   -   2,075 
Substandard -   -   -   -   -   5,111   -   5,111 
Doubtful -   -   -   -   -   -   -   - 
Total$6,214  $34,073  $12,914  $15,568  $6,393  $35,072  $3,675  $113,909 
                                
Current Period gross charge-offs$-  $-  $-  $6  $-  $49  $-  $55 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                                
Commercial real estate:                               
Nonowner-occupied                                
Risk Rating                               
Pass$26,130  $65,352  $36,494  $26,905  $36,521  $92,721  $8,978  $293,101 
Special Mention -   -   -   -   -   -   -   - 
Substandard 350   -   -   2,165   6,000   -   -   8,515 
Doubtful -   -   -   -   -   -   -   - 
Total$26,480  $65,352  $36,494  $29,070  $42,521  $92,721  $8,978  $301,616 
                                
Current Period gross charge-offs$-  $-  $-  $-  $-  $-  $-  $- 
 
        
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                                
Commercial real estate:                               
Construction                               
Risk Rating                               
Pass$10,741  $34,498  $13,375  $8,801  $14,180  $3,251  $6,701  $91,547 
Special Mention -   -   -   -   -   -   -   - 
Substandard -   -   -   -   -   -   676   676 
Doubtful -   -   -   -   -   -   -   - 
Total$10,741  $34,498  $13,375  $8,801  $14,180  $3,251  $7,377  $92,223 
                                
Current Period gross charge-offs$-  $-  $-  $-  $-  $-  $-  $- 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                               
Commercial and industrial                               
Risk Rating                               
Pass$4,159  $25,467  $6,516  $5,278  $18,294  $57,904  $34,323  $151,941 
Special Mention -   -   -   -   -   -   2,820   2,820 
Substandard -   -   380   -   75   5,913   4,738   11,106 
Doubtful -   -   -   -   -   -   -   - 
Total$4,159  $25,467  $6,896  $5,278  $18,369  $63,817  $41,881  $165,867 
                                
Current Period gross charge-offs$-  $38  $-  $2  $-  $1  $-  $41 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Commercial real estate:                               
Owner-occupied                                
Risk Rating                               
Pass$33,907  $13,312  $18,663  $6,468  $5,279  $15,235  $1,574  $94,438 
Special Mention -   -   -   -   12,260   -   -   12,260 
Substandard -   -   -   -   4,191   2,036   1,799   8,026 
Doubtful -   -   -   -   -   -   -   - 
Total$33,907  $13,312  $18,663  $6,468  $21,730  $17,271  $3,373  $114,724 
                                
Current Period gross charge-offs$-  $-  $-  $-  $-  $-  $-  $- 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Commercial real estate:                               
Nonowner-occupied                                
Risk Rating                               
Pass$54,962  $35,753  $25,438  $37,616  $29,092  $68,754  $6,932  $258,547 
Special Mention -   -   1,603   -   -   -   -   1,603 
Substandard -   -   4,956   963   -   3,216   -   9,135 
Doubtful -   -   -   -   -   -   -   - 
Total$54,962  $35,753  $31,997  $38,579  $29,092  $71,970  $6,932  $269,285 
                                
Current Period gross charge-offs$-  $-  $-  $-  $-  $-  $-  $- 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Commercial real estate:                               
Construction                               
Risk Rating                               
Pass$34,799  $12,252  $9,561  $14,222  $1,203  $2,384  $4,300  $78,721 
Special Mention -   -   -   -   -   19   -   19 
Substandard -   -   612   6,000   -   -   676   7,288 
Doubtful -   -   -   -   -   -   -   - 
Total$34,799  $12,252  $10,173  $20,222  $1,203  $2,403  $4,976  $86,028 
                                
Current Period gross charge-offs$-  $-  $-  $-  $-  $-  $-  $- 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Commercial and Industrial                               
Risk Rating                               
Pass$28,717  $8,759  $5,519  $20,266  $22,949  $38,192  $27,598  $152,000 
Special Mention -   -   -   -   -   -   2,550   2,550 
Substandard -   380   469   33   141   6,293   5,233   12,549 
Doubtful -   -   -   -   -   -   -   - 
Total$28,717  $9,139  $5,988  $20,299  $23,090  $44,485  $35,381  $167,099 
                       
Current Period gross charge-offs$-  $45  $-  $12  $58  $-  $45  $160 
Recorded Investment of Residential and Consumer Loans
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of June 30, 2026 and December 31, 2025:
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                                
Residential Real Estate                               
Payment Performance                               
Performing $38,609  $73,640  $60,692  $47,098  $32,349  $150,496  $31,919  $434,803 
Nonperforming -   -   39   112   326   1,653   -   2,130 
Total$38,609  $73,640  $60,731  $47,210  $32,675  $152,149  $31,919  $436,933 
                                
Current Period gross charge-offs$-  $-  $58  $-  $-  $24  $-  $82 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                                
Consumer:                               
Automobile                               
Payment Performance                               
Performing $5,635  $7,862  $5,624  $7,026  $4,320  $1,112  $-  $31,579 
Nonperforming 3   87   42   43   82   29   -   286 
Total$5,638  $7,949  $5,666  $7,069  $4,402  $1,141  $-  $31,865 
                                
Current Period gross charge-offs$-  $64  $98  $61  $37  $2  $-  $262 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                                
Consumer:                               
Home Equity                               
Payment Performance                               
Performing $86  $91  $100  $106  $-  $-  $54,124  $54,507 
Nonperforming -   -   -   -   -   -   299   299 
Total$86  $91  $100  $106  $-  $-  $54,423  $54,806 
                                
Current Period gross charge-offs$-  $-  $-  $-  $-  $-  $44  $44 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
June 30, 2026 2026   2025   2024   2023   2022   Prior   Cost Basis   Total 
                                
Consumer:                               
Other                               
Payment Performance                               
Performing $7,928  $12,298  $4,658  $4,263  $3,360  $3,325  $12,967  $48,799 
Nonperforming 1   23   20   36   1   15   -   96 
Total$7,929  $12,321  $4,678  $4,299  $3,361  $3,340  $12,967  $48,895 
                                
Current Period gross charge-offs$342  $42  $70  $56  $9  $11  $148  $678 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Residential Real Estate                               
Payment Performance                               
Performing $70,687  $63,505  $51,608  $34,817  $41,803  $119,416  $34,002  $415,838 
Nonperforming -   415   201   430   26   1,010   -   2,082 
Total$70,687  $63,920  $51,809  $35,247  $41,829  $120,426  $34,002  $417,920 
                                
Current Period gross charge-offs$-  $100  $-  $15  $23  $15  $-  $153 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Consumer:                               
Automobile                               
Payment Performance                               
Performing $10,413  $7,814  $9,907  $6,831  $1,672  $393  $-  $37,030 
Nonperforming 32   63   46   106   -   -   -   247 
Total$10,445  $7,877  $9,953  $6,937  $1,672  $393  $-  $37,277 
                                
Current Period gross charge-offs$34  $251  $338  $118  $12  $16  $-  $769 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Consumer:                               
Home Equity                               
Payment Performance                               
Performing $-  $4  $19  $-  $100  $140  $50,024  $50,287 
Nonperforming -   -   -   -   -   -   318   318 
Total$-  $4  $19  $-  $100  $140  $50,342  $50,605 
                                
Current Period gross charge-offs$-  $-  $-  $-  $-  $-  $31  $31 
 
                          Revolving      
                          Loans      
 Term Loans Amortized Costs Basis by Origination Year  Amortized     
December 31, 2025 2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
                                
Consumer:                               
Other                               
Payment Performance                               
Performing $11,889  $12,012  $6,005  $4,696  $3,425  $1,535  $13,403  $52,965 
Nonperforming 3   40   23   23   7   19   -   115 
Total$11,892  $12,052  $6,028  $4,719  $3,432  $1,554  $13,403  $53,080 
                                
Current Period gross charge-offs$346  $148  $162  $76  $73  $29  $376  $1,210 
Activity in Allowance for Credit Losses by Portfolio Segment
The following table presents the activity in the ACL by portfolio segment for the three months ended June 30, 2026 and 2025:
 
  Residential    Commercial    Commercial          
June 30, 2026 Real Estate   Real Estate   and Industrial   Consumer   Total 
Allowance for credit losses:                    
Beginning balance$2,316  $7,275  $1,650  $1,702  $12,943 
Provision for credit losses 26   835   3,006   (52)   3,815 
Loans charged off (10)   -   (38)   (455)   (503) 
Recoveries 14   -   2   339   355 
Total ending allowance balance$2,346  $8,110  $4,620  $1,534  $16,610 
 
  Residential    Commercial    Commercial          
June 30, 2025 Real Estate   Real Estate   and Industrial   Consumer   Total 
Allowance for credit losses:                    
Beginning balance$2,693  $3,789  $1,705  $1,952  $10,139 
Provision for credit losses 171   421   70   371   1,033 
Loans charged-off (11)   -   -   (611)   (622) 
Recoveries 20   18   60   208   306 
Total ending allowance balance$2,873  $4,228  $1,835  $1,920  $10,856 
  Residential    Commercial    Commercial          
June 30, 2026 Real Estate   Real Estate   and Industrial   Consumer   Total 
Allowance for credit losses:                    
Beginning balance$2,793  $5,331  $1,738  $1,657  $11,519 
Provision for credit losses (395)   2,834   2,905   173   5,517 
Loans charged off (82)   (55)   (41)   (984)   (1,162) 
Recoveries 30   -   18   688   736 
Total ending allowance balance$2,346  $8,110  $4,620  $1,534  $16,610 
                    
                    
  Residential    Commercial    Commercial          
June 30, 2025 Real Estate   Real Estate   and Industrial   Consumer   Total 
Allowance for credit losses:                    
Beginning balance$2,684  $3,653  $1,536  $2,215  $10,088 
Provision for credi losses 167   557   343   442   1,509 
Loans charged-off (16)   -   (160)   (1,137)   (1,313) 
Recoveries 38   18   116   400   572 
Total ending allowance balance$2,873  $4,228  $1,835  $1,920  $10,856 
Amortized Cost of Collateral Dependent Loans, by Class
The following table presents the amortized cost basis of collateral dependent loans by class of loans as of June 30, 2026 and December 31, 2025:
 
 Collateral Type
June 30, 2026 Real Estate   Business Assets   Total 
Residential real estate$384  $-  $384 
Commercial real estate:           
Owner-occupied 4,747   148   4,895 
Non-owner-occupied 8,515   -   8,515 
Construction 676   -   676 
Commercial and Industrial 627   4,491   5,118 
Consumer:           
Automobile -   -   - 
Home equity 397   -   397 
Other -   -   - 
Total collateral dependent loans$15,346  $4,639  $19,985 
 
 Collateral Type
December 31, 2025 Real Estate   Business Assets   Total 
Residential real estate$1,301  $544  $1,845 
Commercial real estate:           
Owner-occupied 4,885   140   5,025 
Non-Owner-occupied 5,062   -   5,062 
Construction 7,288   -   7,288 
Commercial & Industrial 543   1,257   1,800 
Consumer:           
Automobile -   14   14 
Home equity 75   -   75 
Other 39   21   60 
Total collateral dependent loans$19,193  $1,976  $21,169