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Legal Contingencies
6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Legal Contingencies
Note 13 – Legal Contingencies
From time to time, the Company and its subsidiaries are involved in various legal proceedings incidental to their business in the ordinary course, including matters in which damages in various amounts are claimed, as well as regulatory and governmental investigations and inquiries that could result in penalties, fines or other sanctions against the Company. Based on information currently available, the Company does not believe that the liabilities (if any) resulting from such matters will have a material effect on the financial position of the Company. However, considering inherent uncertainties involved in such matters, ongoing legal expenses or an adverse outcome in one or more of these matters could materially and adversely affect the Company's financial condition, results of operations or cash flows in any particular reporting period, as well as its reputation.
Under ASC 450, the Company accrues for a loss contingency when the loss is probable and reasonably estimable. The Company discloses the matter if a material loss is at least reasonably possible. Under ASC 450, a loss contingency is "reasonably possible" if "the chance of the future event or events occurring is more than remote but less than likely", and a loss contingency is "remote" if "the chance of the future event or events occurring is slight."
During the second quarter of 2026, the Company and the Bank reached a settlement of the investigation by the U.S. Attorney’s Office for the Middle District of Pennsylvania into, among other things, the Bank’s anti-money laundering controls and the Bank’s relationship with a former customer who pleaded guilty to a charge of bank fraud in 2020, which was previously disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2025 and quarterly report on Form 10-Q for the quarter ended March 31, 2026. Effective June 30, 2026, the Company and the Bank entered into a one-year non-prosecution agreement with the United States Department of Justice, Criminal Division, Money Laundering, Narcotics and Forfeiture Section and the U.S. Attorney’s Office for the Middle District of Pennsylvania (the “Offices”), pursuant to which the Offices will not bring any criminal or civil case against the Company or the Bank for any conduct described in the statement of facts attached to the agreement, subject to the Company’s and the Bank’s compliance with the terms of the agreement. Under the terms of the settlement, the Bank paid approximately $9.8 million, which was fully accrued in the Company’s audited financial statements for the year ended December 31, 2025.