Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2026

Amortized Cost and Unpaid Principal Balance of Loans by Loan Segment

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)

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

Schedule of Financing Receivables For Gross Charge-Offs By Grade And Year Of Loan Origination

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

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

Aging of Contractually 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	$—

Loans on Nonaccrual Status

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

Financing Receivable, Modified

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 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 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