Loans, Lease Receivables, and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2026

Loans, Lease Receivables, and Allowance for Credit Losses

Note 5 — Loans, Lease Receivables, and Allowance for Credit Losses

Loan and lease receivables consist of the following:


	September 30, 2026		December 31, 2025
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	347,783	$	293,706
Commercial real estate — non-owner occupied		955,378		885,870
Construction and land development		184,718		248,560
Multi-family		690,323		571,468
1-4 family		60,868		60,661
Total commercial real estate		2,239,070		2,060,265
Commercial and industrial		1,389,826		1,273,997
Consumer and other		48,021		40,965
Total gross loans and leases receivable		3,676,917		3,375,227
Less:
Allowance for credit losses		36,541		35,877
Deferred loan fees and costs, net		3,100		1,986
Loans and leases receivable, net	$	3,637,276	$	3,337,364

In June 2026, the Corporation transferred its loans held for sale portfolio of $23.7 million to loans held for investment at lower of cost or fair value. As a result, during the second quarter of 2026, the Corporation recognized no change in its loan loss reserves and no gain or loss.

Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market and participation interests in other, non-SBA originated loans.


September 30, 2026
(In Thousands)	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family		Commercial and Industrial		Consumer and Other		Total
SBA
Loans transferred to third parties	$	—	$	—	$	—	$	—	$	—		7,111	$	—	$	7,111
Outstanding balance of loans serviced		—		—		—		—		—		74,552		—		74,552
Ownership of transferred loans		—		—		—		—		—		21,669		—		21,669
Non-SBA
Loans transferred to third parties	$	—	$	—	$	28,603	$	668	$	—	$	54,830	$	—	$	84,101
Outstanding balance of loans serviced		11,608		127,647		32,052		171,073		—		30,910		—		373,290
Ownership of transferred loans		6,633		156,920		85,307		142,329		—		19,151		—		410,340
Loan participations purchased		—		—		—		—		—		7,441		—		7,441


September 30, 2025
(In Thousands)	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family		Commercial and Industrial		Consumer and Other		Total
SBA
Loans transferred to third parties	$	—	$	—	$	—	$	—	$	—	$	17,430	$	—	$	17,430
Outstanding balance of loans serviced		—		—		—		—		—		83,472		—		83,472
Ownership of transferred loans		—		—		—		—		—		25,248		—		25,248
Non-SBA
Loans transferred to third parties	$	—	$	22,146	$	52,249	$	3,875	$	—	$	17,589	$	—	$	95,859
Outstanding balance of loans serviced		12,308		160,135		39,592		161,554		—		20,198		—		393,787
Ownership of transferred loans		7,033		221,642		55,768		143,871		—		26,460		—		454,774
Loan participations purchased		—		—		9,774		—		—		6,375		—		16,149

The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-accrual loans by class of receivable, and considering certain credit quality indicators:


September 30, 2026	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2026	2025	2024	2023	2022	Prior	Revolving Loans Amortized Cost Basis	Total	Category as a % of total portfolio
Commercial real estate — owner occupied
Category
I	$58,322	$70,474	$17,393	$38,018	$33,088	$109,379	$255	326,929	94.0%
II	—	—	—	6,875	—	2,847	—	9,722	2.8%
III	—	—	1,424	—	—	9,708	—	11,132	3.2%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$58,322	$70,474	$18,817	$44,893	$33,088	$121,934	$255	$347,783	100.0%
Commercial real estate — non-owner occupied
Category
I	$128,726	$104,828	$73,368	$74,511	$92,589	$429,859	$23,097	$926,978	97.0%
II	—	—	—	8,751	—	7,425	—	16,176	1.7%
III	—	—	—	—	—	12,224	—	12,224	1.3%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$128,726	$104,828	$73,368	$83,262	$92,589	$449,508	$23,097	$955,378	100.0%
Construction and land development
Category
I	$35,278	$58,031	$25,587	$19,331	$9,939	$4,968	$20,160	$173,294	93.8%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	454	10,970	—	11,424	6.2%
Total	$35,278	$58,031	$25,587	$19,331	$10,393	$15,938	$20,160	$184,718	100.0%
Multi-family
Category
I	$70,738	$55,008	$47,681	$132,404	$87,342	$270,192	$2,627	$665,992	96.5%
II	—	—	—	1,523	5,804	6,284	—	13,611	2.0%
III	—	—	—	—	—	1,000	—	1,000	0.1%
IV	—	—	—	7,305	—	2,415	—	9,720	1.4%
Total	$70,738	$55,008	$47,681	$141,232	$93,146	$279,891	$2,627	$690,323	100.0%
1-4 family
Category
I	$6,945	$17,658	$7,889	$—	$3,198	$3,298	$21,880	$60,868	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$6,945	$17,658	$7,889	$—	$3,198	$3,298	$21,880	$60,868	100.0%
Commercial and industrial
Category
I	$239,156	$200,911	$118,687	$89,523	$32,489	$51,737	$527,292	$1,259,795	90.6%
II	1,317	2,986	2,201	3,511	635	1,581	6,814	19,045	1.4%
III	265	2,069	17,374	13,675	7,001	1,490	50,016	91,890	6.6%
IV	179	1,196	1,149	1,879	6,143	2,544	6,006	19,096	1.4%
Total	$240,917	$207,162	$139,411	$108,588	$46,268	$57,352	$590,128	$1,389,826	100.0%
Consumer and other
Category
I	$11,807	$7,104	$4,621	$2,193	$3,896	$8,804	$9,596	$48,021	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$11,807	$7,104	$4,621	$2,193	$3,896	$8,804	$9,596	$48,021	100.0%
Total Loans
Category
I	$550,972	$514,014	$295,226	$355,980	$262,541	$878,237	$604,907	$3,461,877	94.1%
II	1,317	2,986	2,201	20,660	6,439	18,137	6,814	58,554	1.6%
III	265	2,069	18,798	13,675	7,001	24,422	50,016	116,246	3.2%
IV	179	1,196	1,149	9,184	6,597	15,929	6,006	40,240	1.1%
Total	$552,733	$520,265	$317,374	$399,499	$282,578	$936,725	$667,743	$3,676,917	100.0%


December 31, 2025	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2025	2024	2023	2022	2021	Prior	Revolving Loans Amortized Cost Basis	Total	Category as a % of total portfolio
Commercial real estate — owner occupied
Category
I	$65,752	$20,422	$39,698	$32,186	$30,251	$92,981	$295	$281,585	95.9%
II	—	—	2,011	—	—	—	—	2,011	0.7%
III	—	2,197	—	—	—	7,913	—	10,110	3.4%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$65,752	$22,619	$41,709	$32,186	$30,251	$100,894	$295	$293,706	100.0%
Commercial real estate — non-owner occupied
Category
I	$85,103	$81,087	$108,308	$89,226	$63,803	$392,720	$34,236	$854,483	96.4%
II	—	—	—	—	—	6,863	—	6,863	0.8%
III	—	—	—	—	716	23,808	—	24,524	2.8%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$85,103	$81,087	$108,308	$89,226	$64,519	$423,391	$34,236	$885,870	100.0%
Construction and land development
Category
I	$35,887	$73,179	$78,264	$10,278	$91	$5,043	$25,482	$228,224	91.8%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	5,755	—	—	—	—	5,755	2.3%
IV	—	—	—	454	8,155	5,972	—	14,581	5.9%
Total	$35,887	$73,179	$84,019	$10,732	$8,246	$11,015	$25,482	$248,560	100.0%
Multi-family
Category
I	$57,113	$18,231	$103,795	$93,280	$61,620	$211,473	$2,644	$548,156	95.9%
II	—	—	1,530	7,309	—	782	—	9,621	1.7%
III	—	—	—	—	8,380	1,019	—	9,399	1.6%
IV	—	—	1,714	—	2,578	—	—	4,292	0.8%
Total	$57,113	$18,231	$107,039	$100,589	$72,578	$213,274	$2,644	$571,468	100.0%
1-4 family
Category
I	$18,249	$7,043	$1,416	$4,432	$2,036	$3,470	$24,015	$60,661	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$18,249	$7,043	$1,416	$4,432	$2,036	$3,470	$24,015	$60,661	100.0%
Commercial and industrial
Category
I	$240,914	$178,507	$138,504	$52,149	$35,514	$31,754	$452,160	$1,129,502	88.6%
II	568	14,119	10,997	5,948	25	2,797	24,140	58,594	4.6%
III	499	8,617	10,409	4,656	787	1,745	34,206	60,919	4.8%
IV	447	1,845	3,384	7,644	302	4,083	7,277	24,982	2.0%
Total	$242,428	$203,088	$163,294	$70,397	$36,628	$40,379	$517,783	$1,273,997	100.0%
Consumer and other
Category
I	$7,790	$5,715	$4,167	$4,926	$1,717	$10,423	$6,227	$40,965	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$7,790	$5,715	$4,167	$4,926	$1,717	$10,423	$6,227	$40,965	100.0%
Total Loans
Category
I	$510,808	$384,184	$474,152	$286,477	$195,032	$747,864	$545,059	$3,143,576	93.1%
II	568	14,119	14,538	13,257	25	10,442	24,140	77,089	2.3%
III	499	10,814	16,164	4,656	9,883	34,485	34,206	110,707	3.3%
IV	447	1,845	5,098	8,098	11,035	10,055	7,277	43,855	1.3%
Total	$512,322	$410,962	$509,952	$312,488	$215,975	$802,846	$610,682	$3,375,227	100.0%

Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation primarily uses a

nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is determined based on various quantitative and qualitative factors and is subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management.

Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team, or the industry in which the borrower operates.

Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends, or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation.

Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category.

Category IV — Loans and leases in this category are non-accrual loans. Management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Non-accrual loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded.

The delinquency aging of the loan and lease portfolio by class of receivable was as follows:


	September 30, 2026
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days Past Due			Total Past Due			Current			Total Loans and Leases
	(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied	$	—		$	—		$	—		$	—		$	347,783		$	347,783
Non-owner occupied		—			—			—			—			955,378			955,378
Construction and land development		—			—			11,424			11,424			173,294			184,718
Multi-family		5,702			—			—			5,702			684,621			690,323
1-4 family		—			—			—			—			60,868			60,868
Commercial and industrial		854			463			13,196			14,513			1,375,313			1,389,826
Consumer and other		—			—			—			—			48,021			48,021
Total	$	6,556		$	463		$	24,620		$	31,639		$	3,645,278		$	3,676,917
Percent of portfolio		0.18	%		0.01	%		0.67	%		0.86	%		99.14	%		100.00	%


	December 31, 2025
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days Past Due			Total Past Due			Current			Total Loans and Leases
	(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied	$	—		$	—		$	—		$	—		$	293,706		$	293,706
Non-owner occupied		—			—			—			—			885,870			885,870
Construction and land development		14,581			—			—			14,581			233,979			248,560
Multi-family		—			—			—			—			571,468			571,468
1-4 family		—			—			—			—			60,661			60,661
Commercial and industrial		3,116			963			15,229			19,308			1,254,689			1,273,997
Consumer and other		50			—			—			50			40,915			40,965
Total	$	17,747		$	963		$	15,229		$	33,939		$	3,341,288		$	3,375,227
Percent of portfolio		0.53	%		0.03	%		0.45	%		1.01	%		98.99	%		100.00	%

The following tables provide additional detail on loans on non-accrual status and loans past due over 89 days still accruing as of:


	September 30, 2026
	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	—	$	—	$	—
Commercial real estate — non-owner occupied		—		—		—
Construction and land development		11,424		—		—
Multi-family		4,018		5,702		—
1-4 family		—		—		—
Total commercial real estate		15,442		5,702		—
Commercial and industrial		8,649		10,447		—
Consumer and other		—		—		—
Total non-accrual loans and leases	$	24,091	$	16,149	$	—


	December 31, 2025
	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	—	$	—	$	—
Commercial real estate — non-owner occupied		—		—		—
Construction and land development		14,581		—		—
Multi-family		4,292		—		—
1-4 family		—		—		—
Total commercial real estate		18,873		—		—
Commercial and industrial		10,652		14,330		—
Consumer and other		—		—		—
Total non-accrual loans and leases	$	29,525	$	14,330	$	—


	September 30, 2026			December 31, 2025
Total non-accrual loans and leases to gross loans and leases		1.09	%		1.30	%
Allowance for credit losses to gross loans and leases		1.06			1.12
Allowance for credit losses to non-accrual loans and leases		96.54			85.95

The following table presents the amortized cost basis of the non-accrual, collateral-dependent loans as of:


	September 30, 2026		December 31, 2025
	(In Thousands)
Equipment	$	11,089	$	14,615
Real Estate		23,127		21,595
Accounts Receivable		6,006		7,277
Other		68		473
Total	$	40,290	$	43,960

Occasionally, the Corporation modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

The following table presents the amortized cost basis of loans at September 30, 2026 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2026 and 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.


	For the Nine Months Ended September 30, 2026
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension		Total		Total Class of Financing Receivable
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—	$	—	$	—		0.00	%
Commercial and industrial		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—		0.00	%


	For the Nine Months Ended September 30, 2025
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension		Total		Total Class of Financing Receivable
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—	$	—	$	—		0.00	%
Commercial and industrial		—		—		—		302		6,016		6,318		0.50
Total	$	—	$	—	$	—	$	302	$	6,016	$	6,318		0.19	%

The Corporation closely 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 performance of such loans that have been modified in the last 12 months:

          
         For the Nine Months Ended September 30, 2026

          
         30-59
Days Past
Due

         60-89
Days Past
Due

         Greater
Than 90
Days Past
Due

         Total Past
Due

          
         (Dollars in Thousands)

Commercial real estate

—

—

—

—

Commercial and industrial

—

—

—

—

Total

—

—

—

—

          
         For the Nine Months Ended September 30, 2025

          
         30-59
Days Past
Due

         60-89
Days Past
Due

         Greater
Than 90
Days Past
Due

         Total Past
Due

          
         (Dollars in Thousands)

Commercial real estate

—

—

—

—

Commercial and industrial

—

—

—

—

Total

—

—

—

—

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2026 and 2025:


	For the Nine Months Ended September 30, 2026
(Dollars in Thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction			Weighted Average Term Extension (years)		Weighted Average Payment Delay (years)
Commercial real estate	$	—		0.00	%		0.00		0.00
Commercial and industrial		—		0.00			0.00		0.00
Total	$	—		0.00	%		0.00		0.00


	For the Nine Months Ended September 30, 2025
(Dollars in Thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction			Weighted Average Term Extension (years)		Weighted Average Payment Delay (years)
Commercial real estate	$	—		0.00	%		0.00		0.00
Commercial and industrial		—		2.25			0.50		0.50
Total	$	—		2.25	%		0.50		0.50

The following table presents the amortized cost basis of loans that had a payment default during the nine months ended September 30, 2026 and 2025 and were modified in the 12 months prior to that default to borrowers experiencing financial difficulty:

          
         For the Nine Months Ended September 30, 2026

          
         Principal Forgiveness

         Payment Delay

         Term Extension

         Interest Rate Reduction

          
         (In Thousands)

Commercial real estate

—

—

—

—

Commercial and industrial

—

—

—

—

Total

—

—

—

—


	For the Nine Months Ended September 30, 2025
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		—		397		—
Total	$	—	$	—	$	397	$	—

Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 – Nature of Operations and Summary of Significant Accounting Policies included in the Corporation’s Form 10-K for the year ended December 31, 2025.

Quantitative Considerations

The ACL is primarily calculated utilizing a Discounted Cash Flow (“DCF”) model. Key inputs and assumptions used in this model are discussed below:

•

Forecast model - For each portfolio segment, a Loss Driver Analysis (“LDA”) was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized peer Federal Financial Institutions Examination Council Call Report data for all DCF pools. The Corporation updates the LDA annually.

•

Probability of Default ("PD") – PD is the probability that an asset will be in default within a given time frame. The Corporation has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs.

•

Loss Given Default ("LGD") – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from using a method referred to as Frye Jacobs which uses industry data.

•

Prepayments and curtailments – Prepayments and curtailments are calculated based on the Corporation’s own data. This analysis is updated semi-annually.

•

Forecast and reversion – The Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

•

Economic forecast – The Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. As of December 31, 2025, the Corporation selected a forecast which estimates unemployment between 4.48% and 4.78% and GDP year-over-year percentage change between 1.75% and 2.42% over the next four quarters. As of September 30, 2026, the Corporation selected a forecast which estimates unemployment between 4.35% and 4.79% and GDP year-over-year percentage change between 1.69% and 2.08% over the next four quarters. Following the forecast period, the model reverts to long-term averages over four quarters. Management believes that the resulting quantitative reserve appropriately balances economic indicators with identified risks.

Qualitative Considerations

In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below:

•

The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;

•

Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets;

•

The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff;

•

The volume of past due financial assets, the volume of non-accrual loans and leases, and the volume and severity of adversely classified or graded assets;

•

The existence and effect of industry concentrations of credit;

•

The nature and volume of the portfolio segment or class;

•

The quality of the Corporation’s credit function; and

•

The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics.

ACL Activity

A summary of the activity in the allowance for credit losses by portfolio segment is as follows:


	As of and for the Three Months Ended September 30, 2026
	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family			Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	2,536	$	6,445	$	2,979	$	4,921	$	573		$	21,546		$	517		$	39,517
Charge-offs		—		—		—		—		—			(2,921	)		—			(2,921	)
Recoveries		—		8		—		—		81			221			—			310
Net recoveries (charge-offs)		—		8		—		—		81			(2,700	)		—			(2,611	)
Provision (credit) for credit losses		272		525		580		21		(87	)		634			(2	)		1,943
Ending balance	$	2,808	$	6,978	$	3,559	$	4,942	$	567		$	19,480		$	515		$	38,849
Components:
Allowance for credit losses on loans	$	2,783	$	6,896	$	2,050	$	4,924	$	525		$	18,886		$	477		$	36,541
Allowance for credit losses on unfunded credit commitments		25		82		1,509		18		42			594			38			2,308
Total ACL	$	2,808	$	6,978	$	3,559	$	4,942	$	567		$	19,480		$	515		$	38,849


	As of and for the Three Months Ended September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,685	$	6,330	$	2,467	$	6,059	$	429	$	20,836		$	404		$	38,210
Charge-offs		—		—		—		—		—		(1,706	)		(2	)		(1,708	)
Recoveries		—		—		—		—		6		434			—			440
Net recoveries (charge-offs)		—		—		—		—		6		(1,272	)		(2	)		(1,268	)
Provision (credit) for credit losses		160		421		374		59		118		357			(49	)		1,440
Ending balance	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382
Components:
Allowance for credit losses on loans	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282		$	322		$	36,690
Allowance for credit losses on unfunded credit commitments		8		62		911		15		26		639			31			1,692
Total ACL	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382


	As of and for the Nine Months Ended September 30, 2026
	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family			Commercial and Industrial			Consumer and Other		Total
	(In Thousands)
Beginning balance	$	1,908	$	6,381	$	2,752	$	4,926	$	557		$	20,754		$	414	$	37,692
Charge-offs		—		—		—		—		—			(6,776	)		—		(6,776	)
Recoveries		—		8		—		—		93			863			—		964
Net recoveries (charge-offs)		—		8		—		—		93			(5,913	)		—		(5,812	)
Provision for credit losses		900		589		807		16		(83	)		4,639			101		6,969
Ending balance	$	2,808	$	6,978	$	3,559	$	4,942	$	567		$	19,480		$	515	$	38,849
Components:
Allowance for credit losses on loans	$	2,783	$	6,896	$	2,050	$	4,924	$	525		$	18,886		$	477	$	36,541
Allowance for credit losses on unfunded credit commitments		25		82		1,509		18		42			594			38		2,308
Total ACL	$	2,808	$	6,978	$	3,559	$	4,942	$	567		$	19,480		$	515	$	38,849


	As of and for the Nine Months Ended September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,629	$	5,892	$	2,826	$	4,613	$	523	$	21,470		$	315		$	37,268
Charge-offs		—		—		—		—		—		(6,844	)		(12	)		(6,856	)
Recoveries		2		—		—		—		19		1,149			—			1,170
Net recoveries (charge-offs)		2		—		—		—		19		(5,695	)		(12	)		(5,686	)
Provision for credit losses		214		859		15		1,505		11		4,146			50			6,800
Ending balance	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382
Components:
Allowance for credit losses on loans	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282		$	322		$	36,690
Allowance for credit losses on unfunded credit commitments		8		62		911		15		26		639			31			1,692
Total ACL	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382

ACL Summary

Loans collectively evaluated for credit losses in the following tables include all performing loans at September 30, 2026 and December 31, 2025. Loans individually evaluated for credit losses include all non-accrual loans.

The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology.


	As of September 30, 2026
	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family		Commercial and Industrial		Consumer and Other		Total
	(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses	$	2,783	$	6,896	$	2,050	$	4,508	$	525	$	14,632	$	477	$	31,871
Individually evaluated for credit loss		—		—		—		416		—		4,254		—		4,670
Total	$	2,783	$	6,896	$	2,050	$	4,924	$	525	$	18,886	$	477	$	36,541
Loans and lease receivables:
Collectively evaluated for credit losses	$	347,783	$	955,378	$	173,294	$	680,603	$	60,868	$	1,370,730	$	48,021	$	3,636,677
Individually evaluated for credit loss		—		—		11,424		9,720		—		19,096		—		40,240
Total	$	347,783	$	955,378	$	184,718	$	690,323	$	60,868	$	1,389,826	$	48,021	$	3,676,917


	As of December 31, 2025
	Owner Occupied		Non-Owner Occupied		Construction and Land Development		Multi- Family		1-4 Family		Commercial and Industrial		Consumer and Other		Total
	(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses	$	1,902	$	6,306	$	1,871	$	4,915	$	521	$	14,439	$	373	$	30,327
Individually evaluated for credit loss		—		—		—		—		—		5,550		—		5,550
Total	$	1,902	$	6,306	$	1,871	$	4,915	$	521	$	19,989	$	373	$	35,877
Loans and lease receivables:
Collectively evaluated for credit losses	$	293,706	$	885,870	$	233,979	$	567,176	$	60,661	$	1,249,015	$	40,965	$	3,331,372
Individually evaluated for credit loss		—		—		14,581		4,292		—		24,982		—		43,855
Total	$	293,706	$	885,870	$	248,560	$	571,468	$	60,661	$	1,273,997	$	40,965	$	3,375,227