Loans and Allowance for Credit Losses on Loans

Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses ¹		Charge-offs		Recoveries		Balance
Three months ended June 30, 2025
Commercial	$	7,847	$	431	$	1,125	$	32	$	7,185
Leases		2,191		86		-		3		2,280
Commercial real estate – investor		15,636		1,272		-		14		16,922
Commercial real estate – owner occupied		7,267		480		-		1		7,748
Construction		2,669		(127)		13		350		2,879
Residential real estate – investor		562		1		-		2		565
Residential real estate – owner occupied		1,840		78		-		8		1,926
Multifamily		1,853		(146)		-		-		1,707
HELOC		1,678		82		-		10		1,770
Other		8		67		94		27		8
Total	$	41,551	$	2,224	$	1,232	$	447	$	42,990

¹ Amount does not include the provision for unfunded commitment liability.



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses		Charge-offs		Recoveries		Balance
Six months ended June 30, 2025
Commercial	$	7,813	$	3,879	$	4,571	$	64	$	7,185
Leases		2,136		234		107		17		2,280
Commercial real estate – investor		14,528		2,366		-		28		16,922
Commercial real estate – owner occupied		10,036		(2,250)		47		9		7,748
Construction		3,581		(218)		834		350		2,879
Residential real estate – investor		553		8		-		4		565
Residential real estate – owner occupied		1,509		379		-		38		1,926
Multifamily		1,876		(169)		-		-		1,707
HELOC		1,578		170		-		22		1,770
Other		9		110		202		91		8
Total	$	43,619	$	4,509	$	5,761	$	623	$	42,990

¹ Amount does not include the provision for unfunded commitment liability.



			Provision for
	Beginning		(Release of)						Ending
Allowance for credit losses	Balance		Credit Losses ¹		Charge-offs		Recoveries		Balance
Three months ended June 30, 2024
Commercial	$	6,382	$	327	$	3	$	22	$	6,728
Leases		2,959		(900)		81		-		1,978
Commercial real estate – investor		16,270		6,132		4,580		20		17,842
Commercial real estate – owner occupied		10,992		(2,650)		1,281		119		7,180
Construction		1,097		923		-		-		2,020
Residential real estate – investor		636		(30)		-		3		609
Residential real estate – owner occupied		1,660		(51)		-		9		1,618
Multifamily		2,593		211		-		-		2,804
HELOC		1,508		(40)		-		15		1,483
Other		16		28		66		29		7
Total	$	44,113	$	3,950	$	6,011	$	217	$	42,269

¹ Amount does not include the provision for unfunded commitment liability.

			Provision for
	Beginning		(Release of)							Ending
Allowance for credit losses	Balance		Credit Losses ¹		Charge-offs		Recoveries			Balance
Six months ended June 30, 2024
Commercial	$	3,998	$	2,653	$	18	$	95	$	6,728
Leases		2,952		(933)		81		40		1,978
Commercial real estate – investor		17,105		5,230		4,596		103		17,842
Commercial real estate – owner occupied		12,280		(70)		5,168		138		7,180
Construction		1,038		982		-		-		2,020
Residential real estate – investor		669		(65)		-		5		609
Residential real estate – owner occupied		1,821		(220)		-		17		1,618
Multifamily		2,728		76		-		-		2,804
HELOC		1,656		(205)		-		32		1,483
Other		17		46		136		80		7
Total	$	44,264	$	7,494	$	9,999	$	510	$	42,269

¹ Amount does not include the provision for unfunded commitment liability.

Schedule of aged analysis of past due loans by class of loans


													90 days or
					90 Days or								Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past						Due and
June 30, 2025	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	1,784		50		1,731		3,565		715,362	$	718,927	$	345
Leases		606		841		935		2,382		522,131		524,513		-
Commercial real estate – investor		1,791		-		-		1,791		1,116,991		1,118,782		-
Commercial real estate – owner occupied		1,206		5,791		2,236		9,233		643,216		652,449		-
Construction		179		525		344		1,048		250,644		251,692		-
Residential real estate – investor		13		-		-		13		50,963		50,976		-
Residential real estate – owner occupied		280		2,502		455		3,237		217,435		220,672		-
Multifamily		125		287		192		604		333,183		333,787		-
HELOC		215		36		239		490		110,775		111,265
Other		23		-		-		23		15,581		15,604		-
Total	$	6,222	$	10,032	$	6,132	$	22,386	$	3,976,281	$	3,998,667	$	345


													90 days or
					90 Days or								Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past						Due and
December 31, 2024	Past Due		Past Due		Due		Due		Current		Total Loans		Accruing
Commercial	$	219	$	95	$	6,963	$	7,277	$	793,199	$	800,476	$	1,397
Leases		1,438		372		352		2,162		489,586		491,748		-
Commercial real estate – investor		2,021		402		-		2,423		1,076,406		1,078,829		-
Commercial real estate – owner occupied		1,123		2,479		43		3,645		679,638		683,283		-
Construction		-		-		5,799		5,799		195,917		201,716		-
Residential real estate – investor		763		-		439		1,202		48,396		49,598		-
Residential real estate – owner occupied		2,489		90		509		3,088		203,861		206,949		-
Multifamily		-		233		1,040		1,273		350,052		351,325		-
HELOC		109		74		202		385		103,003		103,388		39
Other		13		10		-		23		14,001		14,024		-
Total	$	8,175	$	3,755	$	15,347	$	27,277	$	3,954,059	$	3,981,336	$	1,436

Schedule of credit quality indicators by class of loans

Credit quality indicators by loan segment and loan origination date at June 30, 2025, were as follows:


	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	91,187	$	202,559	$	138,762	$	39,982	$	12,843	$	9,218	$	179,524	$	129	$	674,204
Special Mention		-		411		17,717		513		-		-		2,728		-		21,369
Substandard		-		186		1,651		4,004		574		9		16,930		-		23,354
Total commercial		91,187		203,156		158,130		44,499		13,417		9,227		199,182		129		718,927

Leases
Pass		127,404		209,251	$	119,224		44,988		16,727		4,911		-		-		522,505
Special Mention		-		-		-		575		87		-		-		-		662
Substandard		-		-		352		994		-		-		-		-		1,346
Total leases		127,404		209,251		119,576		46,557		16,814		4,911		-		-		524,513

Commercial real estate – investor
Pass		159,820		235,453		124,731		276,095		183,985		118,625		5,321		-		1,104,030
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		1,644		13,108		-		-		-		-		14,752
Total commercial real estate – investor		159,820		235,453		126,375		289,203		183,985		118,625		5,321		-		1,118,782

Commercial real estate – owner occupied
Pass		35,593		73,940		91,005		124,765		117,658		125,783		17,822		-		586,566
Special Mention		-		-		-		12,716		-		1,832		-		-		14,548
Substandard		65		2,086		19,232		1,136		11,056		17,760		-		-		51,335
Total commercial real estate – owner occupied		35,658		76,026		110,237		138,617		128,714		145,375		17,822		-		652,449

Construction
Pass		23,254		68,136		28,782		101,787		18,099		924		280		-		241,262
Special Mention		-		-		-		8,806		-		-		-		-		8,806
Substandard		-		-		1,280		-		-		344		-		-		1,624
Total construction		23,254		68,136		30,062		110,593		18,099		1,268		280		-		251,692

Residential real estate – investor
Pass		5,548		5,676		3,438		12,734		8,928		11,903		1,548		-		49,775
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		497		704		-		-		1,201
Total residential real estate – investor		5,548		5,676		3,438		12,734		9,425		12,607		1,548		-		50,976

Residential real estate – owner occupied
Pass		24,558		12,864		28,061		34,807		31,047		86,721		907		-		218,965
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		102		-		147		1,458		-		-		1,707
Total residential real estate – owner occupied		24,558		12,864		28,163		34,807		31,194		88,179		907		-		220,672

Multifamily
Pass		24,130		36,716		54,340		66,027		85,724		65,554		197		-		332,688
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		192		-		907		-		-		-		-		1,099
Total multifamily		24,130		36,908		54,340		66,934		85,724		65,554		197		-		333,787

HELOC
Pass		1,379		2,433		2,308		1,853		325		4,814		96,973		-		110,085
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		1		-		-		-		238		941		-		1,180
Total HELOC		1,379		2,434		2,308		1,853		325		5,052		97,914		-		111,265

Other
Pass		2,730		4,166		1,162		1,112		377		51		5,984				15,582
Special Mention		-		-		-		-		-		-		-				-
Substandard		-		-		18		4		-		-		-				22
Total other		2,730		4,166		1,180		1,116		377		51		5,984		-		15,604

Total loans
Pass		495,603		851,194		591,813		704,150		475,713		428,504		308,556		129		3,855,662
Special Mention		-		411		17,717		22,610		87		1,832		2,728		-		45,385
Substandard		65		2,465		24,279		20,153		12,274		20,513		17,871		-		97,620
Total loans	$	495,668	$	854,070	$	633,809	$	746,913	$	488,074	$	450,849	$	329,155	$	129	$	3,998,667

Credit quality indicators by loan segment and loan origination date at December 31, 2024, were as follows:


	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted To Term Loans		Total
Commercial
Pass	$	299,863	$	176,549	$	56,619	$	18,679	$	4,999	$	6,527	$	201,514	$	1,279	$	766,029
Special Mention		3,864		1,629		127		176		-		-		3,903		-		9,699
Substandard		-		14		4,169		77		-		-		19,102		-		23,362
Doubtful		-		-		-		1,386		-		-		-		-		1,386
Total commercial		303,727		178,192		60,915		20,318		4,999		6,527		224,519		1,279		800,476

Leases
Pass		239,664		151,372	$	66,379		24,546		6,145		2,298		-		-		490,404
Special Mention		-		-		821		-		-		-		-		-		821
Substandard		-		-		523		-		-		-		-		-		523
Total leases		239,664		151,372		67,723		24,546		6,145		2,298		-		-		491,748

Commercial real estate – investor
Pass		243,983		159,008		305,506		191,651		90,245		67,143		6,804		-		1,064,340
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		335		1,645		-		-		-		12,509		-		-		14,489
Total commercial real estate – investor		244,318		160,653		305,506		191,651		90,245		79,652		6,804		-		1,078,829

Commercial real estate – owner occupied
Pass		91,012		114,255		133,488		121,652		77,919		82,820		14,284		-		635,430
Special Mention		-		1,162		7,908		7,500		3,033		631		-		-		20,234
Substandard		-		125		1,168		11,241		9,897		5,188		-		-		27,619
Total commercial real estate – owner occupied		91,012		115,542		142,564		140,393		90,849		88,639		14,284		-		683,283

Construction
Pass		44,699		27,928		83,222		17,747		82		1,081		468		-		175,227
Special Mention		-		-		6,794		-		-		344		-		-		7,138
Substandard		-		-		19,351		-		-		-		-		-		19,351
Total construction		44,699		27,928		109,367		17,747		82		1,425		468		-		201,716

Residential real estate – investor
Pass		5,595		3,833		13,366		8,060		5,693		9,813		1,548		-		47,908
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		375		532		-		783		-		-		1,690
Total residential real estate – investor		5,595		3,833		13,741		8,592		5,693		10,596		1,548		-		49,598

Residential real estate – owner occupied
Pass		11,609		29,670		35,786		32,760		22,996		71,507		770		-		205,098
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		151		-		1,700		-		-		1,851
Total residential real estate – owner occupied		11,609		29,670		35,786		32,911		22,996		73,207		770		-		206,949

Multifamily
Pass		39,133		68,781		68,032		100,049		29,060		44,735		370		-		350,160
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		962		-		203		-		-		-		1,165
Total multifamily		39,133		68,781		68,994		100,049		29,263		44,735		370		-		351,325

HELOC
Pass		2,602		2,561		2,118		383		1,383		3,752		90,042		-		102,841
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		39		214		294		-		547
Total HELOC		2,602		2,561		2,118		383		1,422		3,966		90,336		-		103,388

Other
Pass		6,521		1,559		1,438		639		92		7		3,758				14,014
Special Mention		-		-		-		-		-		-		-				-
Substandard		-		5		5		-		-		-		-				10
Total other		6,521		1,564		1,443		639		92		7		3,758		-		14,024

Total loans
Pass		984,681		735,516		765,954		516,166		238,614		289,683		319,558		1,279		3,851,451
Special Mention		3,864		2,791		15,650		7,676		3,033		975		3,903		-		37,892
Substandard		335		1,789		26,553		12,001		10,139		20,394		19,396		-		90,607
Doubtful		-		-		-		1,386		-		-		-		-		1,386
Total loans	$	988,880	$	740,096	$	808,157	$	537,229	$	251,786	$	311,052	$	342,857	$	1,279	$	3,981,336

Schedule of class of financing receivable


Three months ended June 30, 2025	Term Extension		Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction		Combination - Term Extension and Interest Rate Modification		Combination - Term Extension and Payment Modification ¹		Total Loans Modified		% of Total Loan Segment Modified to Total Loan Segment
Commercial	$	5,447	$	-	$	-	$	6,357	$	11,804	1.6	%
Commercial real estate – investor		-		-		-		-		-	-
Commercial real estate – owner occupied		12,119		-		300		3,221		15,640	2.4
Multifamily		192		-		-		-		192	0.1
Total	$	17,758	$	-	$	300	$	9,578	$	27,636	0.7	%

¹ Payment modifications are either contractual delays in payment or a modificationof the payment amount.


Six months ended June 30, 2025	Term Extension		Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction		Combination - Term Extension and Interest Rate Modification		Combination - Term Extension and Payment Modification ¹		Total Modifications		% of Total Loan Segment Modified to Total Loan Segment
Commercial	$	5,447	$	-	$	-	$	6,357	$	11,804	1.6	%
Commercial real estate – investor		-		-		12,311		13,107		25,418	2.3
Commercial real estate – owner occupied		16,050		-		300		3,221		19,571	3.0
Multifamily		192		-		-		-		192	0.1
Total	$	21,689	$	-	$	12,611	$	22,685	$	56,985	1.4	%

¹ Payment modifications are either contractual delays in payment or a modificationof the payment amount.


Three months ended June 30, 2024	Term Extension		Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction		Combination - Term Extension and Interest Rate Modification		Combination - Term Extension and Payment Modification ¹		Total Loans Modified		% of Total Loan Segment Modified to Total Loan Segment
Commercial	$	-	$	-	$	-	$	-	$	-	-	%
Commercial real estate – investor		-		-		-		-		-	-
Commercial real estate – owner occupied		-		491		-		212		703	0.1
Multifamily		-		-		-		-		-	-
Total	$	-	$	491	$	-	$	212	$	703	0.0	%

¹ Payment modifications are either contractual delays in payment or a modificationof the payment amount.


Six months ended June 30, 2024	Term Extension		Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction		Combination - Term Extension and Interest Rate Modification		Combination - Term Extension and Payment Modification ¹		Total Loans Modified		% of Total Loan Segment Modified to Total Loan Segment
Commercial	$	247	$	-	$	-	$	-	$	247	-	%
Commercial real estate – investor		-		-		-		-		-	-
Commercial real estate – owner occupied		12,156		491		3,269		212		16,128	2.2
Multifamily		-		-		-		-		-	-
Total	$	12,403	$	491	$	3,269	$	212	$	16,375	0.4	%

¹ Payment modifications are either contractual delays in payment or a modificationof the payment amount.


June 30, 2025	30-59 days past due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Modifications
Commercial	$	1,609	$	-	$	-	$	1,609	$	10,195	$	11,804
Commercial real estate – investor		-		-		-		-		28,453		28,453
Commercial real estate – owner occupied		300		3,806		2,151		6,257		13,314		19,571
Residential real estate – owner occupied		-		-		-		-		-		-
Multifamily		-		-		192		192		1,184		1,376
HELOC		-		-		-		-		-		-
Total	$	1,909	$	3,806	$	2,343	$	8,058	$	53,146	$	61,204


June 30, 2024	30-59 days past due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Modifications
Commercial	$	-	$	-	$	-	$	-	$	1,708	$	1,708
Commercial real estate – investor		-		-		-		-		7,473		7,473
Commercial real estate – owner occupied		-		-		3,443		3,443		16,127		19,570
Residential real estate – owner occupied		-		-		-		-		114		114
Multifamily		-		-		214		214		-		214
HELOC		-		-		-		-		88		88
Total	$	-	$	-	$	3,657	$	3,657	$	25,510	$	29,167


Three months ended June 30, 2025	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		4.84		-	%		-
Commercial real estate – investor		-		-			-
Commercial real estate – owner occupied		6.21		0.82			-
Multifamily		6.00		-			-
Total		5.62		0.82	%		-


Six months ended June 30, 2025	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		4.84		-	%		2.00
Commercial real estate – investor		9.00		(1.00)			-
Commercial real estate – owner occupied		5.89		0.82			2.00
Multifamily		6.00		-			-
Total		7.06		(0.96)	%		2.00


Three months ended June 30, 2024	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		-		-	%		-
Commercial real estate – investor		-		-			-
Commercial real estate – owner occupied		25.07		0.15			-
Multifamily		-		-			-
Total		25.07		0.15	%		-


Six months ended June 30, 2024	Weighted-Average Term Extension (In Months)		Weighted-Average Interest Rate Change			Weighted-Average Delay of Payment (In Months)
Commercial		4.00		-	%		-
Commercial real estate – investor		-		-			-
Commercial real estate – owner occupied		5.12		0.33			-
Multifamily		-		-			-
Total		5.10		0.33	%		-