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Commitments, Contingencies and Credit Risk
 9 Months Ended
Sep. 30, 2025
Commitments, Contingencies and Credit Risk  
Commitments, Contingencies and Credit Risk

Note 10: Commitments, Contingencies and Credit Risk

Financial Instruments with Off-Balance Sheet Credit Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements.

The following table presents information regarding commitments outstanding at September 30, 2025 and December 31, 2024:

​

​

​

​

​

​

​

​

​

​

September 30, 

​

December 31, 

(dollars in thousands)

    

2025

    

2024

Unfunded Commitments Under Lines of Credit

​

$

794,788

​

$

679,064

Letters of Credit

​

 

133,538

​

 

124,397

Totals

​

$

928,326

​

$

803,461

​

The Company had outstanding letters of credit with the FHLB of $135.4 million and $103.2 million at September 30, 2025 and December 31, 2024, respectively, on behalf of customers and to secure public deposits.

The ACL for off-balance sheet credit exposures was $3.8 million and $3.6 million at September 30, 2025 and December 31, 2024, respectively, and is separately classified on the balance sheet within other liabilities.

​

The following table presents the balance and activity in the ACL for off-balance sheet credit exposures for the three and nine months ended September 30, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

Nine Months Ended

​

​

​

September 30, 

​

​

September 30, 

(dollars in thousands)

​

​

2025

​

​

2024

​

​

2025

​

​

2024

Allowance for Credit Losses:

​

​

​

​

​

​

​

​

​

​

​

​

Beginning Balance

​

$

3,610

​

$

2,885

​

$

3,610

​

$

2,985

Provision for (Recovery of) Off-Balance Sheet Credit Exposures

​

​

200

​

​

—

​

​

200

​

​

(100)

Total Ending Balance

​

$

3,810

​

$

2,885

​

$

3,810

​

$

2,885

​

Legal Contingencies

Neither the Company nor any of its subsidiaries is a party, and no property of these entities is subject, to any material pending legal proceedings, other than ordinary routine litigation incidental to the Bank’s business. The Company does not know of any material proceeding contemplated by a governmental authority against the Company or any of its subsidiaries.