Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2026

Loans Held for Sale

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of September 30, 2026 and December 31, 2025. The Company designates loans held for sale as either carried at fair value or the lower of cost or fair value at loan level at origination.

Loans Held for Investment

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's CECL methodology to assess credit risk, for the periods indicated:


	September 30, 2026			December 31, 2025
(In Thousands)	Amortized Cost	Unpaid Principal	Difference	Amortized Cost	Unpaid Principal	Difference
Commercial & industrial loans	$480,606	$482,685	($2,079)	$450,826	$453,153	($2,327)
Commercial real estate:
Owner occupied properties	455,883	457,827	(1,944)	433,157	435,050	(1,893)
Non-owner occupied and multifamily properties	826,579	831,170	(4,591)	763,180	767,617	(4,437)
Residential real estate:
1-4 family residential properties secured by first liens	239,968	240,018	(50)	243,185	243,167	18
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	86,426	85,450	976	67,116	66,470	646
1-4 family residential construction loans	32,354	32,539	(185)	39,059	39,311	(252)
Other construction, land development and raw land loans	126,858	128,484	(1,626)	173,589	175,261	(1,672)
Obligations of states and political subdivisions in the US	16,784	16,949	(165)	32,434	32,433	1
Agricultural production, including commercial fishing	58,981	59,259	(278)	47,445	47,682	(237)
Consumer loans	12,018	11,887	131	9,763	9,659	104
Other loans	64,170	64,325	(155)	35,745	35,860	(115)
Total	2,400,627	2,410,593	(9,966)	2,295,499	2,305,663	(10,164)
Allowance for credit losses	(33,293)			(23,737)
Net loans	$2,367,334	$2,410,593	($9,966)	$2,271,762	$2,305,663	($10,164)

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $10.0 million at September 30, 2026 and $10.2 million at December 31, 2025.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $10.0 million and $9.6 million at September 30, 2026 and December 31, 2025, respectively, and is included in other assets in the Consolidated Balance Sheets.

Allowance for Credit Losses

The table below presents activity in the ACL related to loans held for investment for the periods indicated.


Three Months Ended September 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2026
Commercial & industrial loans	$6,228	$8,526	$—	$—	$14,754
Commercial real estate:
Owner occupied properties	2,623	31	—	—	2,654
Non-owner occupied and multifamily properties	5,108	532	—	—	5,640
Residential real estate:
1-4 family residential properties secured by first liens	6,497	(577)	—	—	5,920
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	1,308	59	—	3	1,370
1-4 family residential construction loans	159	33	—	—	192
Other construction, land development and raw land loans	2,848	(742)	—	—	2,106
Obligations of states and political subdivisions in the US	184	(107)	—	—	77
Agricultural production, including commercial fishing	240	11	—	1	252
Consumer loans	122	61	(35)	1	149
Other loans	144	35	—	—	179
Total	$25,461	$7,862	($35)	$5	$33,293
2025
Commercial & industrial loans	$7,508	$1,199	($1,300)	$105	$7,512
Commercial real estate:
Owner occupied properties	2,271	92	—	30	2,393
Non-owner occupied and multifamily properties	4,183	179	—	—	4,362
Residential real estate:
1-4 family residential properties secured by first liens	4,693	271	—	—	4,964
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	928	76	—	5	1,009
1-4 family residential construction loans	270	12	—	—	282
Other construction, land development and raw land loans	2,308	113	—	—	2,421
Obligations of states and political subdivisions in the US	135	(3)	—	—	132
Agricultural production, including commercial fishing	197	(9)	—	1	189
Consumer loans	82	38	(34)	1	87
Other loans	10	(4)	—	—	6
Total	$22,585	$1,964	($1,334)	$142	$23,357


Nine Months Ended September 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2026
Commercial & industrial loans	$6,707	$8,296	($314)	$65	$14,754
Commercial real estate:
Owner occupied properties	2,207	447	—	—	2,654
Non-owner occupied and multifamily properties	4,440	1,278	(78)	—	5,640
Residential real estate:
1-4 family residential properties secured by first liens	5,712	208	—	—	5,920
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	1,041	320	—	9	1,370
1-4 family residential construction loans	324	(132)	—	—	192
Other construction, land development and raw land loans	2,839	(733)	—	—	2,106
Obligations of states and political subdivisions in the US	143	(66)	—	—	77
Agricultural production, including commercial fishing	202	48	—	2	252
Consumer loans	114	71	(37)	1	149
Other loans	8	171	—	—	179
Total	$23,737	$9,908	($429)	$77	$33,293
2025
Commercial & industrial loans	$5,800	$3,017	($1,489)	$184	$7,512
Commercial real estate:
Owner occupied properties	2,944	(581)	—	30	2,393
Non-owner occupied and multifamily properties	3,967	395	—	—	4,362
Residential real estate:
1-4 family residential properties secured by first liens	4,364	600	—	—	4,964
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	775	215	—	19	1,009
1-4 family residential construction loans	230	52	—	—	282
Other construction, land development and raw land loans	3,589	(1,168)	—	—	2,421
Obligations of states and political subdivisions in the US	106	26	—	—	132
Agricultural production, including commercial fishing	169	16	—	4	189
Consumer loans	71	62	(50)	4	87
Other loans	5	1	—	—	6
Total	$22,020	$2,635	($1,539)	$241	$23,357

The following table shows gross charge-offs by year of loan origination for the periods indicated:


Nine Months Ended September 30,

(In Thousands)	2026	2025	2024	2023	2022	Prior	Total
2026
Commercial & industrial loans	$—	$64	$250	$—	$—	$—	$314
Commercial real estate:

Non-owner occupied and multifamily properties	—	—	—	—	78	—	78







Consumer loans	6	5	—	2	1	23	37

Total	$6	$69	$250	$2	$79	$23	$429

Credit Quality Information

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. Loans graded 7 or higher are considered “criticized” loans. A description of the general characteristics of the AQR risk classifications are as follows:

Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The borrower has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses.

Criticized loans:

Special Mention – 7: A “special mention” credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset at some future date.

Substandard – 8: A “substandard” credit is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful – 9: An asset classified “doubtful” has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety.

Loss – 10: An asset classified “loss” is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.

The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.


September 30, 2026	2026	2025	2024	2023	2022	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$87,564	$89,466	$62,851	$59,851	$67,194	$66,343	$433,269
Criticized	3,138	20,064	3,123	5,638	241	15,133	47,337
Total commercial & industrial loans	$90,702	$109,530	$65,974	$65,489	$67,435	$81,476	$480,606

Commercial real estate:


Owner occupied properties
Pass	$55,933	$38,368	$70,947	$42,893	$61,509	$170,359	$440,009
Criticized	—	5,953	—	—	470	9,451	15,874
Total commercial real estate owner occupied properties	$55,933	$44,321	$70,947	$42,893	$61,979	$179,810	$455,883

Non-owner occupied and multifamily properties
Pass	$38,971	$137,358	$157,876	$77,763	$145,309	$261,000	$818,277
Criticized	—	—	—	—	801	7,501	8,302
Total commercial real estate non-owner occupied and multifamily properties	$38,971	$137,358	$157,876	$77,763	$146,110	$268,501	$826,579

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$36,869	$66,305	$35,328	$63,032	$27,345	$9,691	$238,570
Criticized	—	217	724	297	—	160	1,398
Total residential real estate 1-4 family residential properties secured by first liens	$36,869	$66,522	$36,052	$63,329	$27,345	$9,851	$239,968

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$23,969	$21,546	$18,048	$9,569	$5,104	$7,869	$86,105
Criticized	—	68	—	56	—	197	321
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$23,969	$21,614	$18,048	$9,625	$5,104	$8,066	$86,426

1-4 family residential construction loans
Pass	$17,743	$7,333	$464	$62	$—	$6,233	$31,835
Criticized	—	519	—	—	—	—	519
Total residential real estate 1-4 family residential construction loans	$17,743	$7,852	$464	$62	$—	$6,233	$32,354

Other construction, land development and raw land loans
Pass	$35,454	$49,747	$11,986	$9,197	$3,141	$9,607	$119,132
Criticized	—	—	—	—	6,277	1,449	7,726
Total other construction, land development and raw land loans	$35,454	$49,747	$11,986	$9,197	$9,418	$11,056	$126,858

Obligations of states and political subdivisions in the US
Pass	$—	$14,311	$—	$—	$2,473	$—	$16,784
Criticized	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$14,311	$—	$—	$2,473	$—	$16,784

Agricultural production, including commercial fishing
Pass	$14,802	$3,154	$8,570	$8,239	$8,086	$16,130	$58,981
Criticized	—	—	—	—	—	—	—
Total agricultural production, including commercial fishing	$14,802	$3,154	$8,570	$8,239	$8,086	$16,130	$58,981

Consumer loans
Pass	$5,759	$2,814	$1,043	$1,189	$368	$829	$12,002
Criticized	—	1	—	14	—	1	16
Total consumer loans	$5,759	$2,815	$1,043	$1,203	$368	$830	$12,018

Other loans
Pass	$14,043	$—	$—	$981	$47,153	$1,993	$64,170
Criticized	—	—	—	—	—	—	—
Total other loans	$14,043	$—	$—	$981	$47,153	$1,993	$64,170

Total loans
Pass	$331,107	$430,402	$367,113	$272,776	$367,682	$550,054	$2,319,134
Criticized	3,138	26,822	3,847	6,005	7,789	33,892	81,493
Total loans	$334,245	$457,224	$370,960	$278,781	$375,471	$583,946	$2,400,627

Total pass loans	$331,107	$430,402	$367,113	$272,776	$367,682	$550,054	$2,319,134
Government guarantees	(25,119)	(8,300)	(28,200)	(3,990)	(4,047)	(27,168)	(96,824)


Total pass loans, net of government guarantees	$305,988	$422,102	$338,913	$268,786	$363,635	$522,886	$2,222,310

Total criticized loans	$3,138	$26,822	$3,847	$6,005	$7,789	$33,892	$81,493
Government guarantees	—	(64)	—	(1,912)	—	(19,711)	(21,687)
Total criticized loans, net government guarantees	$3,138	$26,758	$3,847	$4,093	$7,789	$14,181	$59,806


December 31, 2025	2025	2024	2023	2022	2021	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$140,717	$73,544	$61,463	$64,841	$24,046	$40,558	$405,169
Criticized	—	3,540	5,905	16,590	12,845	6,777	45,657
Total commercial & industrial loans	$140,717	$77,084	$67,368	$81,431	$36,891	$47,335	$450,826

Commercial real estate:
Owner occupied properties
Pass	$34,589	$70,158	$61,563	$67,334	$52,207	$126,589	$412,440
Criticized	6,002	—	—	3,674	—	11,041	20,717
Total commercial real estate owner occupied properties	$40,591	$70,158	$61,563	$71,008	$52,207	$137,630	$433,157

Non-owner occupied and multifamily properties
Pass	$136,992	$119,749	$68,208	$138,103	$67,826	$221,420	$752,298
Criticized	—	—	—	1,143	—	9,739	10,882
Total commercial real estate non-owner occupied and multifamily properties	$136,992	$119,749	$68,208	$139,246	$67,826	$231,159	$763,180

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$67,166	$53,573	$75,846	$33,276	$2,953	$9,684	$242,498
Criticized	—	—	514	—	—	173	687
Total residential real estate 1-4 family residential properties secured by first liens	$67,166	$53,573	$76,360	$33,276	$2,953	$9,857	$243,185

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$21,690	$18,943	$10,356	$5,820	$2,924	$6,866	$66,599
Criticized	—	—	430	—	—	87	517
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$21,690	$18,943	$10,786	$5,820	$2,924	$6,953	$67,116

1-4 family residential construction loans
Pass	$23,151	$5,946	$—	$—	$—	$9,962	$39,059
Criticized	—	—	—	—	—	—	—
Total residential real estate 1-4 family residential construction loans	$23,151	$5,946	$—	$—	$—	$9,962	$39,059

Other construction, land development and raw land loans
Pass	$53,248	$45,743	$38,772	$13,462	$9,175	$5,455	$165,855
Criticized	—	—	—	6,277	26	1,431	7,734
Total other construction, land development and raw land loans	$53,248	$45,743	$38,772	$19,739	$9,201	$6,886	$173,589

Obligations of states and political subdivisions in the US
Pass	$—	$4,569	$—	$27,864	$—	$1	$32,434
Criticized	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$4,569	$—	$27,864	$—	$1	$32,434

Agricultural production, including commercial fishing
Pass	$3,142	$8,770	$7,950	$8,924	$14,908	$3,631	$47,325
Criticized	—	—	—	—	120	—	120
Total agricultural production, including commercial fishing	$3,142	$8,770	$7,950	$8,924	$15,028	$3,631	$47,445


Consumer loans
Pass	$4,757	$1,848	$1,646	$507	$32	$969	$9,759
Criticized	—	—	2	2	—	—	4
Total consumer loans	$4,757	$1,848	$1,648	$509	$32	$969	$9,763

Other loans
Pass	$—	$—	$639	$33,315	$588	$1,203	$35,745
Criticized	—	—	—	—	—	—	—
Total other loans	$—	$—	$639	$33,315	$588	$1,203	$35,745

Total loans
Pass	$485,452	$402,843	$326,443	$393,446	$174,659	$426,338	$2,209,181
Criticized	6,002	3,540	6,851	27,686	12,991	29,248	86,318
Total loans	$491,454	$406,383	$333,294	$421,132	$187,650	$455,586	$2,295,499

Total pass loans	$485,452	$402,843	$326,443	$393,446	$174,659	$426,338	$2,209,181
Government guarantees	(17,804)	(29,791)	(19,923)	(4,766)	(10,173)	(17,368)	(99,825)
Total pass loans, net of government guarantees	$467,648	$373,052	$306,520	$388,680	$164,486	$408,970	$2,109,356

Total criticized loans	$6,002	$3,540	$6,851	$27,686	$12,991	$29,248	$86,318
Government guarantees	—	—	(1,641)	(16,831)	(11,567)	(12,300)	(42,339)
Total criticized loans, net government guarantees	$6,002	$3,540	$5,210	$10,855	$1,424	$16,948	$43,979

Past Due Loans: The following tables present an aging of contractually past due loans as of the periods presented:


(In Thousands)	30-59 Days Past Due	60-89 Days Past Due	Greater Than 90 Days Past Due	Total Past Due	Current	Total	Greater Than 90 Days Past Due Still Accruing
September 30, 2026
Commercial & industrial loans	$20,000	$—	$469	$20,469	$460,137	$480,606	$—
Commercial real estate:
Owner occupied properties	—	5,953	—	5,953	449,930	455,883	—
Non-owner occupied and multifamily properties	—	—	—	—	826,579	826,579	—
Residential real estate:
1-4 family residential properties secured by first liens	42	329	724	1,095	238,873	239,968	724
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	220	187	—	407	86,019	86,426	—
1-4 family residential construction loans	785	—		785	31,569	32,354	—
Other construction, land development and raw land loans	26	—	1,654	1,680	125,178	126,858	—
Obligations of states and political subdivisions in the US	—	—	—	—	16,784	16,784	—
Agricultural production, including commercial fishing	—	—	—	—	58,981	58,981	—
Consumer loans	11	—	—	11	12,007	12,018	—
Other loans	—	—	—	—	64,170	64,170	—
Total	$21,084	$6,469	$2,847	$30,400	$2,370,227	$2,400,627	$724
December 31, 2025
Commercial & industrial loans	$190	$—	$1,500	$1,690	$449,136	$450,826	$—
Commercial real estate:
Owner occupied properties	—	—	—	—	433,157	433,157	—
Non-owner occupied and multifamily properties	—	—	—	—	763,180	763,180	—
Residential real estate:
1-4 family residential properties secured by first liens	1,505	—	514	2,019	241,166	243,185	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	194	—	372	566	66,550	67,116	—
1-4 family residential construction loans	—	—	—	—	39,059	39,059	—
Other construction, land development and raw land loans	—	277	1,377	1,654	171,935	173,589	—
Obligations of states and political subdivisions in the US	—	—	—	—	32,434	32,434	—
Agricultural production, including commercial fishing	—	—	—	—	47,445	47,445	—
Consumer loans	—	2	—	2	9,761	9,763	—
Other loans	—	—	—	—	35,745	35,745	—
Total	$1,889	$279	$3,763	$5,931	$2,289,568	$2,295,499	$—

Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $40.1 million and $12.0 million at September 30, 2026 and December 31, 2025, respectively. The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.


	September 30, 2026			December 31, 2025
(In Thousands)	Total Nonaccrual	Nonaccrual With No ACL	ACL on Nonaccrual	Total Nonaccrual	Nonaccrual With No ACL	ACL on Nonaccrual

Commercial & industrial loans	$27,378	$4,891	$10,134	$4,251	$1,641	$1,248
Commercial real estate:
Owner occupied properties	9,971	9,971	—	5,134	2,725	86
Non-owner occupied and multifamily properties	1,318	—	517	—	—	—
Residential real estate:
1-4 family residential properties secured by first liens	297	—	11	514	—	60
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	35	—	1	415	372	1

Other construction, land development and raw land loans	1,654	1,654	—	1,654	1,654	—



Other loans	1	—	—	—	—	—
Total nonaccrual loans	40,654	16,516	10,663	11,968	6,392	1,395
Government guarantees on nonaccrual loans	(598)	(598)	—	—	—	—
Net nonaccrual loans	$40,056	$15,918	$10,663	$11,968	$6,392	$1,395

There was $753,000 interest on nonaccrual loans reversed through interest income during the three-month period ending September 30, 2026 and $1.2 million interest on nonaccrual loans reversed through interest income during the nine-month period ending September 30, 2026. There was no interest on nonaccrual loans reversed through interest income during the three and nine-month periods ending September 30, 2025.

There was no interest earned on nonaccrual loans with a principal balance during the three and nine-month periods ending September 30, 2026 and September 30, 2025. However, the Company recognized interest income of $64,000 and $45,000 in the three-month periods ending September 30, 2026 and 2025, respectively, and $302,000 and $87,000 in the nine-month periods ending September 30, 2026 and 2025, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

Loan Modifications: The Company modifies loans to borrowers experiencing financial difficulty as a normal part of our business. These modifications include providing term extensions/modifications, payment modifications, interest rate modifications, or, on rare occasions, principal forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. The Company may provide multiple types of concessions on any one loan.

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:


	Three Months Ended September 30, 2026
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$—	$3,331	$3,331	0.69	%
Commercial real estate:
Owner occupied properties	—	5,953	5,953	1.31	%










Total	$—	$9,284	$9,284	0.39	%

Three Months Ended September 30, 2025

Payment Modification

Term and payment modifications

Total Modifications

Percentage of Class of Financing Receivable

(In Thousands)

Commercial real estate:

Owner occupied properties

$—

—

Total

$—

—


	Nine Months Ended September 30, 2026
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$—	$3,331	$3,331	0.69	%
Commercial real estate:
Owner occupied properties	—	5,953	5,953	1.31	%
Non-owner occupied and multifamily properties	—	801	801	0.10	%









Total	$—	$10,085	$10,085	0.42	%


	Nine Months Ended September 30, 2025
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	$3,252	$3,252	0.74	%










Total	$—	$3,252	$3,252	0.15	%

The Company has no outstanding unfunded commitments to the borrowers included in the previous table.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:


	Three Months Ended September 30, 2026
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	—	%	24
Commercial real estate:
Owner occupied properties	$—	—	%	0


	Three Months Ended September 30, 2025
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	—	%	0


	Nine Months Ended September 30, 2026
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	—	%	24
Commercial real estate:
Owner occupied properties	$—	—	%	0
Non-owner occupied and multifamily properties	$—	2	%	0


	Nine Months Ended September 30, 2025
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	—	%	33

The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty as of the dates indicated. These are loans that have been modified within twelve months of the dates indicated:


(In Thousands)	September 30, 2026	December 31, 2025
Commercial & industrial loans	$3,331	$142
Commercial real estate:
Owner occupied properties	5,953	3,193
Non-owner occupied and multifamily properties	801	—
Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	372

Other construction, land development and raw land loans	1,377	1,376




Total	$11,462	$5,083

The following table presents the amortized cost basis of loans that had a payment default during the periods indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:


	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026
	Term modification	Term and payment modification	Term modification	Term and payment modification
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	$—	$—	$703
Non-owner occupied and multifamily properties	—	801	—	801
Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	—	372	—

Other construction, land development and raw land loans	1,376	—	1,376	—




Total	$1,376	$801	$1,748	$1,504

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

Term and payment modification

(In Thousands)

Commercial real estate:

Owner occupied properties

$3,230

Total

$3,230

The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:


	September 30, 2026
	60-89 Days Past Due	Greater Than 89 Days Past Due	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$—	$—	$—	$3,331	$3,331
Commercial real estate:
Owner occupied properties	5,953	—	5,953	—	5,953
Non-owner occupied and multifamily properties	—	—	—	801	801




Other construction, land development and raw land loans	—	1,377	1,377	—	1,377




Total	$5,953	$1,377	$7,330	$4,132	$11,462


	September 30, 2025
	Greater Than 89 Days Past Due	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$—	$—	$150	$150
Commercial real estate:
Owner occupied properties	—	—	3,230	3,230

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	372	372	—	372

Other construction, land development and raw land loans	1,413	1,413	—	1,413




Total	$1,785	$1,785	$3,380	$5,165

Upon the Company's determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.