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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
Management reviews the appropriateness of the allowance for credit losses ("allowance" or "ACL") on a regular basis. Management considers the accounting policy relating to the allowance to be a critical accounting policy, given the inherent uncertainty in evaluating the levels of the allowance required to cover credit losses in the portfolio and the material effect that assumptions could have on the Company’s results of operations. The Company has developed a methodology to measure the amount of estimated credit loss exposure inherent in the loan portfolio to assure that an appropriate allowance is maintained. The Company’s methodology is based upon guidance provided in SEC Staff Accounting Bulletin No. 119, Measurement of Credit Losses on Financial Instruments ("CECL"), and Financial Instruments - Credit Losses and ASC Topic 326, Financial Instruments - Credit Losses.
The Company uses a Discounted Cash Flow ("DCF") method to estimate expected credit losses for all loan segments excluding the leasing segment. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, recovery lag, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on internal historical data.
The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loans utilizing the DCF method, management utilizes forecasts of national unemployment and a one year percentage change in national gross domestic product as loss drivers in the model.
For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third-party to inform its loss driver forecasts over the four-quarter forecast period. Other
internal and external indicators of economic forecasts, and scenario weightings, are also considered by management when developing the forecast metrics.
Due to the size and characteristics of the leasing portfolio, the Company uses the remaining life method, using the historical loss rate of the commercial and industrial segment, to determine the allowance for credit losses.
The combination of adjustments for credit expectations and timing expectations produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce a net present value of expected cash flows ("NPV"). An ACL is established for the difference between the NPV and amortized cost basis.
Since the methodology is based upon historical experience and trends, current conditions, and reasonable and supportable forecasts, as well as management’s judgment, factors may arise that result in different estimates. While management’s evaluation of the allowance as of March 31, 2026, considers the allowance to be appropriate, under different conditions or assumptions, the Company would need to increase or decrease the allowance. In addition, various federal and State regulatory agencies, as part of their examination process, review the Company's allowance and may require the Company to recognize additions to the allowance based on their judgments and information available to them at the time of their examinations.
Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, and commercial letters of credit. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancellable, through a charge to credit loss expense for off-balance sheet credit exposures included in provision for credit loss expense in the Company's consolidated statements of income.
The following table details activity in the allowance for credit losses on loans and leases for the three months ended March 31, 2026 and 2025. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer
and Other		Finance
Leases		Total
Three Months Ended March 31, 2026
Allowance for credit losses:
Beginning balance$10,234 $35,255 $10,893 $1,230 $59 $57,671 
Charge-offs(336)0 (250)(416)0 (1,002)
Recoveries17 6 63 141 0 227 
Provision (credit) for credit loss expense808 307 (140)236 1 1,212 
Ending Balance$10,723 $35,568 $10,566 $1,191 $60 $58,108 
Three Months Ended March 31, 2025
Allowance for credit losses:
Beginning balance$7,684 $35,837 $11,345 $1,568 $62 $56,496 
Charge-offs(185)0 0 (779)0 (964)
Recoveries42 2 27 160 0 231 
Provision (credit) for credit loss expense1,077 3,469 170 548 (4)5,260 
Ending Balance$8,618 $39,308 $11,542 $1,497 $58 $61,023 
The following table details activity in the liabilities for off-balance sheet credit exposures for the three months ended March 31, 2026 and 2025:
(In thousands)20262025
Liabilities for off-balance sheet credit exposures at beginning of period$1,433 $1,463 
Provision for credit loss expense related to off-balance sheet credit exposures290 27 
Liabilities for off-balance sheet credit exposures at end of period$1,723 $1,490 
The following table presents the amortized cost basis of collateral-dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:
(In thousands)Real EstateBusiness AssetsOtherTotalACL Allocation
March 31, 2026
Commercial and Industrial$2,231 $4,986 $0 $7,217 $251 
Commercial Real Estate20,148 0 0 20,148 1,288 
Total Loans and Leases$22,379 $4,986 $0 $27,365 $1,539 
December 31, 2025
Commercial and Industrial$482 $4,565 $0 $5,047 $250 
Commercial Real Estate21,052 0 0 21,052 1,178 
Total Loans and Leases$21,534 $4,565 $0 $26,099 $1,428 
Loan Modifications to Borrowers Experiencing Financial Difficulty
When the Company modifies loans to borrowers experiencing financial difficulty, the modifications may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.
The following tables show the amortized cost basis as of March 31, 2026 and December 31, 2025 of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:
(In thousands)Term ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionPayment DelayTotal% of Total Class of Loans and Leases
March 31, 2026
Commercial and Industrial
Commercial and industrial other$78 $835 $0 $0 $0 $913 0.09 %
Subtotal commercial and industrial78 835 0 0 0 913 0.08 %
Commercial Real Estate
Commercial real estate other0 3,304 0 0 379 3,683 0.12 %
Subtotal commercial real estate0 3,304 0 0 379 3,683 0.10 %
Residential
Home equity0 0 0 49 0 49 0.02 %
Mortgages0 0 0 297 940 1,237 0.09 %
Subtotal residential0 0 0 346 940 1,286 0.08 %
Consumer
Consumer and other23 0 0 0 0 23 0.03 %
Subtotal consumer23 0 0 0 0 23 0.03 %
Total loans and leases$101 $4,139 $0 $346 $1,319 $5,905 0.09 %
(In thousands)Term ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionPayment DelayTotal% of Total Class of Loans and Leases
December 31, 2025
Commercial and Industrial
Commercial and industrial other$101 $410 $0 $262 $0 $773 0.08 %
Subtotal commercial and industrial101 410 0 262 0 773 0.07 %
Commercial Real Estate
Commercial real estate other0 2,856 0 0 382 3,238 0.11 %
Subtotal commercial real estate0 2,856 0 0 382 3,238 0.09 %
Residential
Home equity0 0 0 50 0 50 0.02 %
Mortgages0 0 0 109 953 1,062 0.08 %
Subtotal residential0 0 0 159 953 1,112 0.07 %
Consumer
Consumer and other23 0 0 0 0 23 0.03 %
Subtotal consumer23 0 0 0 0 23 0.03 %
Total loans and leases$124 $3,266 $0 $421 $1,335 $5,146 0.08 %
There were no loan modifications made to borrowers experiencing financial difficulty that had defaulted as of March 31, 2026 and December 31, 2025.
The following tables show the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of March 31, 2026 and December 31, 2025:
Payment Status (Amortized Cost Basis)
(In thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueNon-AccrualTotal
March 31, 2026
Commercial and Industrial
Commercial and industrial other$436 $0 $0 $0 $477 $913 
Subtotal commercial and industrial436 0 0 0 477 913 
Commercial Real Estate
Commercial real estate other3,199 0 0 0 484 3,683 
Subtotal commercial real estate3,199 0 0 0 484 3,683 
Residential Real Estate
Home equity49 0 0 0 0 49 
Mortgages258 0 0 0 979 1,237 
Subtotal residential real estate307 0 0 0 979 1,286 
Consumer and Other
Consumer and other23 0 0 0 0 23 
Subtotal consumer and other23 0 0 0 0 23 
Total$3,965 $0 $0 $0 $1,940 $5,905 
Payment Status (Amortized Cost Basis)
(In thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueNon-AccrualTotal
December 31, 2025
Commercial and Industrial
Commercial and industrial other$474 $262 $0 $0 $37 $773 
Subtotal commercial and industrial474 262 0 0 37 773 
Commercial Real Estate
Commercial real estate other3,238 0 0 0 0 3,238 
Subtotal commercial real estate3,238 0 0 0 0 3,238 
Residential Real Estate
Home equity50 0 0 0 0 50 
Mortgages260 0 0 0 802 1,062 
Subtotal residential real estate310 0 0 0 802 1,112 
Consumer and Other
Consumer and other23 0 0 0 0 23 
Subtotal consumer and other23 0 0 0 0 23 
Total$4,045 $262 $0 $0 $839 $5,146 
The following tables present credit quality indicators by total loans on an amortized cost basis by origination year as of March 31, 2026 and December 31, 2025:
March 31, 2026
(In thousands)20262025202420232022PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal Loans
Commercial and Industrial - Other:
Pass$63,659 $164,262 $113,700 $72,835 $76,150 $148,294 $331,280 $5,901 $976,081 
Special Mention0 112 1,388 71 0 2,730 22,048 0 26,349 
Substandard0 61 674 1,419 1,295 930 6,458 0 10,837 
Total Commercial and Industrial - Other$63,659 $164,435 $115,762 $74,325 $77,445 $151,954 $359,786 $5,901 $1,013,267 
Current-period gross writeoffs$0 $223 $113 $250 $0 $0 $0 $0 $586 
Commercial and Industrial - Agriculture:
Pass$4,402 $9,799 $8,107 $22,930 $6,900 $4,585 $47,679 $0 $104,402 
Special Mention0 23 0 0 3 19 66 0 111 
Substandard0 0 0 0 0 21 0 0 21 
Total Commercial and Industrial - Agriculture$4,402 $9,822 $8,107 $22,930 $6,903 $4,625 $47,745 $0 $104,534 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Commercial Real Estate
Pass$65,266 $420,999 $327,844 $245,834 $295,832 $1,520,790 $18,783 $11,815 $2,907,163 
Special Mention0 6,500 303 920 1,459 29,853 0 0 39,035 
Substandard0 0 399 927 2,119 21,890 737 0 26,072 
Total Commercial Real Estate$65,266 $427,499 $328,546 $247,681 $299,410 $1,572,533 $19,520 $11,815 $2,972,270 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Commercial Real Estate - Agriculture:
Pass$7,375 $27,881 $24,249 $11,325 $40,488 $118,948 $5,599 $2,043 $237,908 
Special Mention0 0 0 0 0 157 0 0 157 
Substandard0 0 0 0 0 100 0 0 100 
Total Commercial Real Estate - Agriculture$7,375 $27,881 $24,249 $11,325 $40,488 $119,205 $5,599 $2,043 $238,165 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Commercial Real Estate - Construction
Pass$0 $0 $9,000 $37,160 $18,226 $15,930 $366,998 $6,311 $453,625 
Special Mention0 0 0 0 0 0 452 0 452 
Substandard0 0 0 0 0 0 17,301 0 17,301 
Total Commercial Real Estate - Construction$0 $0 $9,000 $37,160 $18,226 $15,930 $384,751 $6,311 $471,378 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
(In thousands)20262025202420232022PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal Loans
Residential - Home Equity
Performing$396 $1,537 $744 $1,366 $1,232 $17,735 $202,873 $788 $226,671 
Nonperforming0 0 0 0 0 1,515 1,741 0 3,256 
Total Residential - Home Equity$396 $1,537 $744 $1,366 $1,232 $19,250 $204,614 $788 $229,927 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Residential - Mortgages
Performing$26,020 $110,382 $100,262 $117,613 $158,819 $831,884 $0 $0 $1,344,980 
Nonperforming0 103 474 865 832 11,848 0 0 14,122 
Total Residential - Mortgages$26,020 $110,485 $100,736 $118,478 $159,651 $843,732 $0 $0 $1,359,102 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Consumer - Direct
Performing$15,963 $20,715 $9,858 $10,416 $6,872 $17,629 $2,099 $0 $83,552 
Nonperforming0 5 9 14 14 14 1 0 57 
Total Consumer - Direct$15,963 $20,720 $9,867 $10,430 $6,886 $17,643 $2,100 $0 $83,609 
Current-period gross writeoffs$355 $15 $0 $5 $5 $36 $0 $0 $416 
Consumer - Indirect
Performing$0 $0 $0 $0 $0 $58 $0 $0 $58 
Nonperforming0 0 0 0 0 0 0 0 0 
Total Consumer - Indirect$0 $0 $0 $0 $0 $58 $0 $0 $58 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
December 31, 2025
(In thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal Loans
Commercial and Industrial - Other:
Pass$178,999 $111,528 $81,883 $73,977 $37,104 $126,706 $316,314 $8,606 $935,117 
Special Mention9,871 9,447 90 1,154 178 1,468 21,037 0 43,245 
Substandard0 423 1,433 0 390 192 5,032 341 7,811 
Total Commercial and Industrial - Other$188,870 $121,398 $83,406 $75,131 $37,672 $128,366 $342,383 $8,947 $986,173 
Current-period gross writeoffs$526 $597 $85 $66 $254 $13 $0 $0 $1,541 
Commercial and Industrial - Agriculture:
Pass$11,890 $9,337 $24,659 $7,539 $1,418 $3,852 $55,263 $470 $114,428 
Special Mention0 0 0 0 22 25 0 0 47 
Substandard0 0 0 0 0 0 0 0 0 
Total Commercial and Industrial - Agriculture$11,890 $9,337 $24,659 $7,539 $1,440 $3,877 $55,263 $470 $114,475 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Commercial Real Estate
Pass$409,529 $320,178 $256,566 $310,051 $374,436 $1,204,064 $19,291 $19,216 $2,913,331 
Special Mention6,500 305 927 1,961 1,362 45,932 0 0 56,987 
Substandard0 399 927 1,149 1,461 3,804 784 0 8,524 
Total Commercial Real Estate$416,029 $320,882 $258,420 $313,161 $377,259 $1,253,800 $20,075 $19,216 $2,978,842 
Current-period gross writeoffs$0 $0 $0 $0 $2,000 $5,310 $0 $0 $7,310 
Commercial Real Estate - Agriculture:
Pass$26,485 $23,114 $11,133 $41,082 $20,087 $103,609 $4,488 $4,026 $234,024 
Special Mention0 0 0 0 0 141 0 0 141 
Substandard0 0 0 0 0 127 0 0 127 
Total Commercial Real Estate - Agriculture$26,485 $23,114 $11,133 $41,082 $20,087 $103,877 $4,488 $4,026 $234,292 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Commercial Real Estate - Construction
Pass$0 $13,222 $30,274 $1,542 $15,688 $349 $344,568 $25,659 $431,302 
Special Mention0 0 0 0 0 0 297 0 297 
Substandard0 0 0 0 0 0 17,302 0 17,302 
Total Commercial Real Estate - Construction$0 $13,222 $30,274 $1,542 $15,688 $349 $362,167 $25,659 $448,901 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
 
(In thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal Loans
Residential - Home Equity
Performing$1,613 $767 $1,448 $1,309 $795 $17,309 $200,118 $1,671 $225,030 
Nonperforming0 0 0 0 0 1,382 1,242 0 2,624 
Total Residential - Home Equity$1,613 $767 $1,448 $1,309 $795 $18,691 $201,360 $1,671 $227,654 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Residential - Mortgages
Performing$113,023 $104,677 $120,785 $160,682 $220,793 $629,641 $0 $0 $1,349,601 
Nonperforming103 294 878 982 1,037 10,637 0 0 13,931 
Total Residential - Mortgages$113,126 $104,971 $121,663 $161,664 $221,830 $640,278 $0 $0 $1,363,532 
Current-period gross writeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Consumer - Direct
Performing$34,987 $11,109 $11,207 $7,430 $6,887 $12,427 $2,282 $0 $86,329 
Nonperforming0 0 2 21 0 40 7 0 70 
Total Consumer - Direct$34,987 $11,109 $11,209 $7,451 $6,887 $12,467 $2,289 $0 $86,399 
Current-period gross writeoffs$2,220 $15 $17 $17 $20 $55 $0 $0 $2,344 
Consumer - Indirect
Performing$0 $0 $0 $0 $17 $51 $0 $0 $68 
Nonperforming0 0 0 0 0 0 0 0 0 
Total Consumer - Indirect$0 $0 $0 $0 $17 $51 $0 $0 $68 
Current-period gross writeoffs$0 $0 $0 $0 $0 $15 $0 $0 $15