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Note 3 - Loans and Allowance for Credit Losses on Loans

9 Months Ended

Sep. 30, 2025

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(3)

Loans and Allowance for Credit Losses on Loans

Composition of loans by class follows:

(in thousands)	September 30, 2025		December 31, 2024

Commercial real estate - non-owner occupied	$	1,947,892	$	1,835,935
Commercial real estate - owner occupied		1,091,134		1,002,853
Total commercial real estate		3,039,026		2,838,788

Commercial and industrial - term		865,759		884,399
Commercial and industrial - lines of credit		624,390		554,255
Total commercial and industrial		1,490,149		1,438,654

Residential real estate - owner occupied		873,540		805,080
Residential real estate - non-owner occupied		394,429		382,744
Total residential real estate		1,267,969		1,187,824

Construction and land development		675,052		623,005
Home equity lines of credit		271,017		247,433
Consumer		142,149		144,644
Leases		18,517		15,514
Credits cards		25,577		24,540
Total loans (1)	$	6,929,456	$	6,520,402

(1) Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs.

Accrued interest receivable on loans, which is excluded from the amortized cost of loans, totaled $24 million and $23 million at September 30, 2025 and December 31, 2024, respectively, and was included in the condensed consolidated balance sheets.

Loans with carrying amounts of $3.73 billion and $3.48 billion were pledged to secure FHLB borrowing capacity at September 30, 2025 and December 31, 2024, respectively.

Loans to directors and their related interests, including loans to companies for which directors are principal owners and executive officers, totaled $100 million and $97 million as of September 30, 2025 and December 31, 2024, respectively.

ACL for Loans

The tables below reflect activity in the ACL for loans:

(in thousands) Three Months Ended September 30, 2025	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	15,278	$	(960	)	$	-		$	-	$	14,318
Commercial real estate - owner occupied		11,996		869			-			17		12,882
Total commercial real estate		27,274		(91	)		-			17		27,200

Commercial and industrial - term		20,677		39			(68	)		175		20,823
Commercial and industrial - lines of credit		7,941		605			-			-		8,546
Total commercial and industrial		28,618		644			(68	)		175		29,369

Residential real estate - owner occupied		14,265		611			(85	)		4		14,795
Residential real estate - non-owner occupied		4,587		(37	)		-			2		4,552
Total residential real estate		18,852		574			(85	)		6		19,347

Construction and land development		11,134		87			-			-		11,221
Home equity lines of credit		1,343		34			-			-		1,377
Consumer		2,877		178			(251	)		106		2,910
Leases		390		46			-			-		436
Credit cards		234		78			(25	)		13		300
Total	$	90,722	$	1,550		$	(429	)	$	317	$	92,160

(in thousands) Nine Months Ended September 30, 2025	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	13,935	$	357		$	-		$	26	$	14,318
Commercial real estate - owner occupied		10,192		2,711			(38	)		17		12,882
Total commercial real estate		24,127		3,068			(38	)		43		27,200

Commercial and industrial - term		21,284		(1,668	)		(410	)		1,617		20,823
Commercial and industrial - lines of credit		6,496		2,050			-			-		8,546
Total commercial and industrial		27,780		382			(410	)		1,617		29,369

Residential real estate - owner occupied		14,468		401			(135	)		61		14,795
Residential real estate - non-owner occupied		5,154		(601	)		(3	)		2		4,552
Total residential real estate		19,622		(200	)		(138	)		63		19,347

Construction and land development		10,981		240			-			-		11,221
Home equity lines of credit		1,277		110			(10	)		-		1,377
Consumer		2,531		874			(831	)		336		2,910
Leases		370		66			-			-		436
Credit cards		255		160			(169	)		54		300
Total	$	86,943	$	4,700		$	(1,596	)	$	2,113	$	92,160

(in thousands) Three Months Ended September 30, 2024	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	13,032	$	278		$	-		$	18	$	13,328
Commercial real estate - owner occupied		9,719		(352	)		-			-		9,367
Total commercial real estate		22,751		(74	)		-			18		22,695

Commercial and industrial - term		21,629		201			(658	)		67		21,239
Commercial and industrial - lines of credit		5,825		677			-			-		6,502
Total commercial and industrial		27,454		878			(658	)		67		27,741

Residential real estate - owner occupied		13,325		1,011			(295	)		4		14,045
Residential real estate - non-owner occupied		4,248		685			-			7		4,940
Total residential real estate		17,573		1,696			(295	)		11		18,885

Construction and land development		10,029		1,622			-			-		11,651
Home equity lines of credit		1,147		87			(100	)		-		1,134
Consumer		2,552		(6	)		(193	)		107		2,460
Leases		411		(9	)		-			-		402
Credit cards		238		131			(99	)		5		275
Total	$	82,155	$	4,325		$	(1,345	)	$	208	$	85,343

(in thousands) Nine Months Ended September 30, 2024	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	22,133	$	(8,856	)	$	-		$	51	$	13,328
Commercial real estate - owner occupied		11,667		(2,349	)		-			49		9,367
Total commercial real estate		33,800		(11,205	)		-			100		22,695

Commercial and industrial - term		14,359		7,006			(748	)		622		21,239
Commercial and industrial - lines of credit		6,495		(197	)		-			204		6,502
Total commercial and industrial		20,854		6,809			(748	)		826		27,741

Residential real estate - owner occupied		9,316		5,021			(316	)		24		14,045
Residential real estate - non-owner occupied		4,282		651			-			7		4,940
Total residential real estate		13,598		5,672			(316	)		31		18,885

Construction and land development		7,593		4,058			-			-		11,651
Home equity lines of credit		1,660		(428	)		(100	)		2		1,134
Consumer		1,407		1,294			(606	)		365		2,460
Leases		220		182			-			-		402
Credit cards		242		193			(184	)		24		275
Total	$	79,374	$	6,575		$	(1,954	)	$	1,348	$	85,343

The following tables present the amortized cost basis of non-performing loans and the amortized cost basis of loans on non-accrual status for which there was no related ACL losses:

	Non-accrual Loans				Past Due 90-Days-
(in thousands)	With No		Total		or-More and Still
September 30, 2025	Recorded ACL		Non-accrual		Accruing Interest

Commercial real estate - non-owner occupied	$	—	$	3,812	$	—
Commercial real estate - owner occupied		434		3,017		—
Total commercial real estate		434		6,829		—

Commercial and industrial - term		302		1,130		9
Commercial and industrial - lines of credit		—		1,188		—
Total commercial and industrial		302		2,318		9

Residential real estate - owner occupied		194		6,052		—
Residential real estate - non-owner occupied		—		1,432		91
Total residential real estate		194		7,484		91

Construction and land development		1,361		1,361		—
Home equity lines of credit		—		—		—
Consumer		—		265		—
Leases		—		—		—
Credit cards		—		302		—
Total	$	2,291	$	18,559	$	100

	Non-accrual Loans				Past Due 90-Days-
(in thousands)	With No		Total		or-More and Still
December 31, 2024	Recorded ACL		Non-accrual		Accruing Interest

Commercial real estate - non-owner occupied	$	4,409	$	5,221	$	—
Commercial real estate - owner occupied		434		1,231		73
Total commercial real estate		4,843		6,452		73

Commercial and industrial - term		3,828		4,903		95
Commercial and industrial - lines of credit		—		—		19
Total commercial and industrial		3,828		4,903		114

Residential real estate - owner occupied		371		7,168		—
Residential real estate - non-owner occupied		—		2,451		39
Total residential real estate		371		9,619		39

Construction and land development		—		311		—
Home equity lines of credit		—		70		91
Consumer		—		372		—
Leases		—		—		—
Credit cards		—		—		170
Total	$	9,042	$	21,727	$	487

For the three and nine month periods ended September 30, 2025 and 2024, the amount of accrued interest income previously recorded as revenue and subsequently reversed due to the change in accrual status was immaterial.

For the three and nine month periods ended September 30, 2025 and 2024, no interest income was recognized on loans on non-accrual status.

The following table presents the amortized cost basis and ACL allocated for collateral dependent loans, which are individually evaluated to determine expected credit losses:

(in thousands) September 30, 2025	Real Estate		Accounts Receivable / Equipment		Other		Total		ACL Allocation

Commercial real estate - non-owner occupied	$	10,419	$	-	$	-	$	10,419	$	1,195
Commercial real estate - owner occupied		4,895		-		-		4,895		837
Total commercial real estate		15,314		-		-		15,314		2,032

Commercial and industrial - term		674		328		128		1,130		542
Commercial and industrial - lines of credit		1,205		288		-		1,493		1,265
Total commercial and industrial		1,879		616		128		2,623		1,807

Residential real estate - owner occupied		5,276		-		-		5,276		1,470
Residential real estate - non-owner occupied		1,889		-		-		1,889		690
Total residential real estate		7,165		-		-		7,165		2,160

Construction and land development		1,361		-		-		1,361		-
Home equity lines of credit		-		-		-		-		-
Consumer		-		-		260		260		27
Leases		-		-		-		-		-
Credit cards		-		-		-		-		-
Total collateral dependent loans	$	25,719	$	616	$	388	$	26,723	$	6,026

(in thousands) December 31, 2024	Real Estate		Accounts Receivable / Equipment		Other		Total		ACL Allocation

Commercial real estate - non-owner occupied	$	11,699	$	-	$	-	$	11,699	$	1,075
Commercial real estate - owner occupied		3,547		-		-		3,547		764
Total commercial real estate		15,246		-		-		15,246		1,839

Commercial and industrial - term		740		4,062		76		4,878		516
Commercial and industrial - lines of credit		349		200		-		549		139
Total commercial and industrial		1,089		4,262		76		5,427		655

Residential real estate - owner occupied		6,514		-		-		6,514		448
Residential real estate - non-owner occupied		2,974		-		-		2,974		852
Total residential real estate		9,488		-		-		9,488		1,300

Construction and land development		311		-		-		311		20
Home equity lines of credit		70		-		-		70		-
Consumer		-		-		356		356		34
Leases		-		-		-		-		-
Credit cards		-		-		-		-		-
Total collateral dependent loans	$	26,204	$	4,262	$	432	$	30,898	$	3,848

The following tables present the aging of contractually past due loans by portfolio class:

(in thousands)			30-59 days		60-89 days		90 or more		Total Past		Total
September 30, 2025	Current		Past Due		Past Due		days Past Due		Due Loans		Loans

Commercial real estate - non-owner occupied	$	1,943,830	$	250	$	255	$	3,557	$	4,062	$	1,947,892
Commercial real estate - owner occupied		1,089,416		1,145		—		573		1,718		1,091,134
Total commercial real estate		3,033,246		1,395		255		4,130		5,780		3,039,026

Commercial and industrial - term		864,171		85		688		815		1,588		865,759
Commercial and industrial - lines of credit		622,688		1,414		—		288		1,702		624,390
Total commercial and industrial		1,486,859		1,499		688		1,103		3,290		1,490,149

Residential real estate - owner occupied		854,643		7,860		5,527		5,510		18,897		873,540
Residential real estate - non-owner occupied		393,432		88		—		909		997		394,429
Total residential real estate		1,248,075		7,948		5,527		6,419		19,894		1,267,969

Construction and land development		673,691		—		—		1,361		1,361		675,052
Home equity lines of credit		270,531		278		208		—		486		271,017
Consumer		141,094		461		396		198		1,055		142,149
Leases		18,517		—		—		—		—		18,517
Credit cards		25,023		203		49		302		554		25,577
Total	$	6,897,036	$	11,784	$	7,123	$	13,513	$	32,420	$	6,929,456

(in thousands)			30-59 days		60-89 days		90 or more		Total Past		Total
December 31, 2024	Current		Past Due		Past Due		days Past Due		Due Loans		Loans

Commercial real estate - non-owner occupied	$	1,831,135	$	168	$	4,410	$	222	$	4,800	$	1,835,935
Commercial real estate - owner occupied		1,001,351		648		715		139		1,502		1,002,853
Total commercial real estate		2,832,486		816		5,125		361		6,302		2,838,788

Commercial and industrial - term		879,597		103		2,740		1,959		4,802		884,399
Commercial and industrial - lines of credit		552,655		59		1,522		19		1,600		554,255
Total commercial and industrial		1,432,252		162		4,262		1,978		6,402		1,438,654

Residential real estate - owner occupied		789,286		7,737		3,176		4,881		15,794		805,080
Residential real estate - non-owner occupied		381,177		628		56		883		1,567		382,744
Total residential real estate		1,170,463		8,365		3,232		5,764		17,361		1,187,824

Construction and land development		622,614		391		—		—		391		623,005
Home equity lines of credit		246,700		424		194		115		733		247,433
Consumer		143,796		470		69		309		848		144,644
Leases		15,514		—		—		—		—		15,514
Credit cards		24,122		220		27		171		418		24,540
Total	$	6,487,947	$	10,848	$	12,909	$	8,698	$	32,455	$	6,520,402

Loan Risk Ratings

Consistent with regulatory guidance, Bancorp categorizes loans into credit risk rating categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends. Pass-rated loans include all risk-rated loans other than those classified as OAEM, substandard, and doubtful, which are defined below:

OAEM – Loans classified as OAEM have potential weaknesses requiring management's heightened attention. These potential weaknesses may result in deterioration of repayment prospects for the loan or of Bancorp's credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the paying capacity of the obligor or of collateral pledged, if any. Loans so classified have well-defined weaknesses that jeopardize ultimate repayment of the debt. Default is a distinct possibility if the deficiencies are not corrected.

Substandard non-performing – Loans classified as substandard non-performing have all the characteristics of substandard loans and have been placed on non-accrual status. Loans are usually placed on non-accrual status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 days or more.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. A loan is typically charged off once it is classified as doubtful.

Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. Bancorp has elected not to disclose revolving loans that have converted to term loans, as activity relating to this disclosure, which is included in the tables is currently immaterial to Bancorp’s loan portfolio and is expected to be in the future.

As of September 30, 2025, the risk rating of loans based on year of origination was as follows:

(in thousands)	Term Loans Amortized Cost Basis by Origination Year																Revolving loans amortized
September 30, 2025	2025		2024			2023			2022			2021			Prior		cost basis		Total

Commercial real estate - non-owner occupied:
Risk rating
Pass	$	382,902	$	330,748		$	294,092		$	356,275		$	266,156		$	236,158	$	23,368	$	1,889,699
OAEM		8,466		4,024			11,728			2,266			7,699			14,666		-		48,849
Substandard		138		1,098			1,217			-			2,768			213		98		5,532
Substandard non-performing		-		158			-			-			-			3,654		-		3,812
Doubtful		-		-			-			-			-			-		-		-
Total Commercial real estate non-owner occupied	$	391,506	$	336,028		$	307,037		$	358,541		$	276,623		$	254,691	$	23,466	$	1,947,892

Current period gross charge offs	$	-	$	-		$	-		$	-		$	-		$	-	$	-	$	-

Commercial real estate - owner occupied:
Risk rating
Pass	$	153,234	$	126,759		$	181,422		$	174,378		$	171,446		$	233,948	$	16,044	$	1,057,231
OAEM		1,629		4,401			145			441			1,797			3,053		-		11,466
Substandard		1,975		4,985			5,546			3,271			3,439			204		-		19,420
Substandard non-performing		1,194		773			-			158			718			174		-		3,017
Doubtful		-		-			-			-			-			-		-		-
Total Commercial real estate owner occupied	$	158,032	$	136,918		$	187,113		$	178,248		$	177,400		$	237,379	$	16,044	$	1,091,134

Current period gross charge offs	$	-	$	-		$	-		$	(38	)	$	-		$	-	$	-	$	(38	)

Commercial and industrial - term:
Risk rating
Pass	$	197,950	$	223,596		$	138,877		$	157,425		$	92,628		$	42,246	$	-	$	852,722
OAEM		-		7,813			146			1,104			-			5		-		9,068
Substandard		-		-			108			1,189			1,491			51		-		2,839
Substandard non-performing		201		364			76			-			-			489		-		1,130
Doubtful		-		-			-			-			-			-		-		-
Total Commercial and industrial - term	$	198,151	$	231,773		$	139,207		$	159,718		$	94,119		$	42,791	$	-	$	865,759

Current period gross charge offs	$	-	$	(52	)	$	(298	)	$	(56	)	$	(4	)	$	-	$	-	$	(410	)

Commercial and industrial - lines of credit
Risk rating
Pass	$	62,380	$	110,230		$	6,929		$	1,749		$	2,030		$	2,221	$	402,899	$	588,438
OAEM		-		2,314			-			-			-			-		9,866		12,180
Substandard		-		-			-			-			-			-		22,584		22,584
Substandard non-performing		900		-			-			-			-			-		288		1,188
Doubtful		-		-			-			-			-			-		-		-
Total Commercial and industrial - lines of credit	$	63,280	$	112,544		$	6,929		$	1,749		$	2,030		$	2,221	$	435,637	$	624,390

Current period gross charge offs	$	-	$	-		$	-		$	-		$	-		$	-	$	-	$	-

(in thousands)	Term Loans Amortized Cost Basis by Origination Year																		Revolving loans amortized
September 30, 2025	2025			2024			2023			2022			2021			Prior			cost basis			Total

Residential real estate - owner occupied
Risk rating
Pass	$	136,881		$	150,510		$	140,792		$	155,017		$	145,603		$	138,119		$	-		$	866,922
OAEM		152			-			-			-			79			-			-			231
Substandard		-			-			-			10			-			325			-			335
Substandard non-performing		441			994			2,442			1,688			-			487			-			6,052
Doubtful		-			-			-			-			-			-			-			-
Total Residential real estate - owner occupied	$	137,474		$	151,504		$	143,234		$	156,715		$	145,682		$	138,931		$	-		$	873,540

Current period gross charge offs	$	-		$	-		$	(104	)	$	-		$	(26	)	$	(5	)	$	-		$	(135	)

Residential real estate - non-owner occupied
Risk rating
Pass	$	63,203		$	69,593		$	60,817		$	65,578		$	63,911		$	69,099		$	-		$	392,201
OAEM		-			-			-			-			-			480			-			480
Substandard		-			-			208			-			-			108			-			316
Substandard non-performing		100			150			886			159			-			137			-			1,432
Doubtful		-			-			-			-			-			-			-			-
Total Residential real estate - non-owner occupied	$	63,303		$	69,743		$	61,911		$	65,737		$	63,911		$	69,824		$	-		$	394,429

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	(3	)	$	-		$	(3	)

Construction and land development
Risk rating
Pass	$	159,937		$	274,424		$	203,597		$	20,548		$	3,148		$	2,635		$	9,402		$	673,691
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		-			-			1,361			-			-			-			-			1,361
Doubtful		-			-			-			-			-			-			-			-
Total Construction and land development	$	159,937		$	274,424		$	204,958		$	20,548		$	3,148		$	2,635		$	9,402		$	675,052

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Home equity lines of credit
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-		$	-		$	270,182		$	270,182
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			835			835
Substandard non-performing		-			-			-			-			-			-			-			-
Doubtful		-			-			-			-			-			-			-			-
Total Home equity lines of credit	$	-		$	-		$	-		$	-		$	-		$	-		$	271,017		$	271,017

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	(10	)	$	(10	)

Consumer
Risk rating
Pass	$	20,378		$	16,005		$	12,660		$	9,346		$	4,159		$	901		$	78,435		$	141,884
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		-			124			94			12			25			10			-			265
Doubtful		-			-			-			-			-			-			-			-
Total Consumer	$	20,378		$	16,129		$	12,754		$	9,358		$	4,184		$	911		$	78,435		$	142,149
Current period gross charge offs	$	(650	)	$	(30	)	$	(97	)	$	(32	)	$	-		$	(22	)	$	-		$	(831	)

(in thousands)	Term Loans Amortized Cost Basis by Origination Year																		Revolving loans amortized
September 30, 2025	2025			2024			2023			2022			2021			Prior			cost basis			Total

Leases
Risk rating
Pass	$	7,259		$	4,184		$	4,212		$	1,179		$	994		$	247		$	-		$	18,075
OAEM		-			-			-			-			-			-			-			-
Substandard		-			10			-			421			-			11			-			442
Substandard non-performing		-			-			-			-			-			-			-			-
Doubtful		-			-			-			-			-			-			-			-
Total Leases	$	7,259		$	4,194		$	4,212		$	1,600		$	994		$	258		$	-		$	18,517

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Credit cards
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-		$	-		$	25,275		$	25,275
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		-			-			-			-			-			-			302			302
Doubtful		-			-			-			-			-			-			-			-
Total Credit cards	$	-		$	-		$	-		$	-		$	-		$	-		$	25,577		$	25,577

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	(169	)	$	(169	)

Total loans
Risk rating
Pass	$	1,184,124		$	1,306,049		$	1,043,398		$	941,495		$	750,075		$	725,574		$	825,605		$	6,776,320
OAEM		10,247			18,552			12,019			3,811			9,575			18,204			9,866			82,274
Substandard		2,113			6,093			7,079			4,891			7,698			912			23,517			52,303
Substandard non-performing		2,836			2,563			4,859			2,017			743			4,951			590			18,559
Doubtful		-			-			-			-			-			-			-			-
Total Loans	$	1,199,320		$	1,333,257		$	1,067,355		$	952,214		$	768,091		$	749,641		$	859,578		$	6,929,456

Current period gross charge offs	$	(650	)	$	(82	)	$	(499	)	$	(126	)	$	(30	)	$	(30	)	$	(179	)	$	(1,596	)

As of December 31, 2024, the risk rating of loans based on year of origination was as follows:

(in thousands)	Term Loans Amortized Cost Basis by Origination Year																Revolving loans amortized
December 31, 2024	2024			2023			2022			2021			2020		Prior		cost basis		Total

Commercial real estate - non-owner occupied:
Risk rating
Pass	$	416,310		$	293,890		$	402,081		$	291,741		$	199,039	$	157,303	$	28,584	$	1,788,948
OAEM		10,480			1,533			-			10,709			1,664		13,191		-		37,577
Substandard		1,546			-			2,320			-			-		225		98		4,189
Substandard non-performing		269			-			-			-			-		4,952		-		5,221
Doubtful		-			-			-			-			-		-		-		-
Total Commercial real estate non-owner occupied	$	428,605		$	295,423		$	404,401		$	302,450		$	200,703	$	175,671	$	28,682	$	1,835,935

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-	$	-	$	-	$	-

Commercial real estate - owner occupied:
Risk rating
Pass	$	133,404		$	163,452		$	172,933		$	174,638		$	156,955	$	139,919	$	22,012	$	963,313
OAEM		6,292			273			1,145			1,856			715		3,385		-		13,666
Substandard		7,192			9,923			3,656			3,643			-		229		-		24,643
Substandard non-performing		434			-			-			731			66		-		-		1,231
Doubtful		-			-			-			-			-		-		-		-
Total Commercial real estate owner occupied	$	147,322		$	173,648		$	177,734		$	180,868		$	157,736	$	143,533	$	22,012	$	1,002,853

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-	$	-	$	-	$	-

Commercial and industrial - term:
Risk rating
Pass	$	312,854		$	173,383		$	198,754		$	120,056		$	34,013	$	30,903	$	-	$	869,963
OAEM		2,679			1,813			833			104			28		-		-		5,457
Substandard		496			311			-			3,036			10		223		-		4,076
Substandard non-performing		3,822			349			343			-			302		87		-		4,903
Doubtful		-			-			-			-			-		-		-		-
Total Commercial and industrial - term	$	319,851		$	175,856		$	199,930		$	123,196		$	34,353	$	31,213	$	-	$	884,399

Current period gross charge offs	$	(414	)	$	(250	)	$	(6	)	$	(78	)	$	-	$	-	$	-	$	(748	)

Commercial and industrial - lines of credit
Risk rating
Pass	$	119,206		$	11,181		$	3,967		$	2,553		$	295	$	2,654	$	372,866	$	512,722
OAEM		7,448			-			-			-			-		-		10,750		18,198
Substandard		-			-			-			-			-		-		23,335		23,335
Substandard non-performing		-			-			-			-			-		-		-		-
Doubtful		-			-			-			-			-		-		-		-
Total Commercial and industrial - lines of credit	$	126,654		$	11,181		$	3,967		$	2,553		$	295	$	2,654	$	406,951	$	554,255

Current period gross charge offs	$	-		$	-		$	(555	)	$	-		$	-	$	-	$	-	$	(555	)

(in thousands)	Term Loans Amortized Cost Basis by Origination Year																		Revolving loans amortized
December 31, 2024	2024			2023			2022			2021			2020			Prior			cost basis			Total

Residential real estate - owner occupied
Risk rating
Pass	$	161,257		$	154,799		$	166,127		$	159,449		$	77,516		$	78,169		$	-		$	797,317
OAEM		158			-			-			83			-			-			-			241
Substandard		-			-			12			-			-			342			-			354
Substandard non-performing		1,028			3,737			1,400			320			9			674			-			7,168
Doubtful		-			-			-			-			-			-			-			-
Total Residential real estate - owner occupied	$	162,443		$	158,536		$	167,539		$	159,852		$	77,525		$	79,185		$	-		$	805,080

Current period gross charge offs	$	-		$	(349	)	$	-		$	-		$	-		$	(7	)	$	-		$	(356	)

Residential real estate - non-owner occupied
Risk rating
Pass	$	80,717		$	66,330		$	72,580		$	70,585		$	41,874		$	47,578		$	-		$	379,664
OAEM		-			-			-			-			-			514			-			514
Substandard		-			-			-			-			-			115			-			115
Substandard non-performing		739			1,332			214			17			-			149			-			2,451
Doubtful		-			-			-			-			-			-			-			-
Total Residential real estate - non-owner occupied	$	81,456		$	67,662		$	72,794		$	70,602		$	41,874		$	48,356		$	-		$	382,744

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Construction and land development
Risk rating
Pass	$	237,785		$	234,782		$	115,429		$	8,381		$	1,273		$	3,569		$	15,420		$	616,639
OAEM		3,680			1,376			-			-			-			-			-			5,056
Substandard		-			-			-			-			-			-			999			999
Substandard non-performing		311			-			-			-			-			-			-			311
Doubtful		-			-			-			-			-			-			-			-
Total Construction and land development	$	241,776		$	236,158		$	115,429		$	8,381		$	1,273		$	3,569		$	16,419		$	623,005

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Home equity lines of credit
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-		$	-		$	246,336		$	246,336
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			1,027			1,027
Substandard non-performing		-			-			-			-			-			-			70			70
Doubtful		-			-			-			-			-			-			-			-
Total Home equity lines of credit	$	-		$	-		$	-		$	-		$	-		$	-		$	247,433		$	247,433

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	(107	)	$	(107	)

Consumer
Risk rating
Pass	$	22,895		$	18,200		$	12,822		$	6,294		$	1,095		$	1,023		$	81,943		$	144,272
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		135			113			66			13			17			28			-			372
Doubtful		-			-			-			-			-			-			-			-
Total Consumer	$	23,030		$	18,313		$	12,888		$	6,307		$	1,112		$	1,051		$	81,943		$	144,644
Current period gross charge offs	$	(640	)	$	(19	)	$	(12	)	$	(41	)	$	(9	)	$	(45	)	$	(19	)	$	(785	)

(in thousands)	Term Loans Amortized Cost Basis by Origination Year																		Revolving loans amortized
December 31, 2024	2024			2023			2022			2021			2020			Prior			cost basis			Total

Leases
Risk rating
Pass	$	4,935		$	5,439		$	1,864		$	1,462		$	597		$	3		$	-		$	14,300
OAEM		-			-			-			-			-			-			-			-
Substandard		31			-			586			536			61			-			-			1,214
Substandard non-performing		-			-			-			-			-			-			-			-
Doubtful		-			-			-			-			-			-			-			-
Total Leases	$	4,966		$	5,439		$	2,450		$	1,998		$	658		$	3		$	-		$	15,514

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Credit cards
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-		$	-		$	24,540		$	24,540
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		-			-			-			-			-			-			-			-
Doubtful		-			-			-			-			-			-			-			-
Total Credit cards	$	-		$	-		$	-		$	-		$	-		$	-		$	24,540		$	24,540

Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	(225	)	$	(225	)

Total loans
Risk rating
Pass	$	1,489,363		$	1,121,456		$	1,146,557		$	835,159		$	512,657		$	461,121		$	791,701		$	6,358,014
OAEM		30,737			4,995			1,978			12,752			2,407			17,090			10,750			80,709
Substandard		9,265			10,234			6,574			7,215			71			1,134			25,459			59,952
Substandard non-performing		6,738			5,531			2,023			1,081			394			5,890			70			21,727
Doubtful		-			-			-			-			-			-			-			-
Total Loans	$	1,536,103		$	1,142,216		$	1,157,132		$	856,207		$	515,529		$	485,235		$	827,980		$	6,520,402

Current period gross charge offs	$	(1,054	)	$	(618	)	$	(573	)	$	(119	)	$	(9	)	$	(52	)	$	(351	)	$	(2,776	)

For certain loan classes, such as credit cards, credit quality is evaluated based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in credit cards based on payment activity:

	September 30,		December 31,
(in thousands)	2025		2024

Credit cards
Performing	$	25,275	$	24,370
Non-performing		302		170
Total credit cards	$	25,577	$	24,540

Bancorp had $923,000 and $569,000, respectively, in residential real estate loans for which formal foreclosure proceedings were in process at September 30, 2025 and December 31, 2024.

Modifications to Borrowers Experiencing Financial Difficulty

During the three and nine month periods ended September 30, 2025 and 2024, there were no modifications made to loans for borrowers experiencing financial difficulty and there were no payment defaults of existing modified loans within 12 months following modification. Default is determined at 90 days or more past due, charge off, or foreclosure.