Loans, Lease Receivables, and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2025

Loans, Lease Receivables, and Allowance for Credit Losses

Note 5 — Loans, Lease Receivables, and Allowance for Credit Losses

Loan and lease receivables consist of the following:


	September 30, 2025		December 31, 2024
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	287,005	$	273,397
Commercial real estate — non-owner occupied		871,807		845,298
Construction		236,590		221,086
Multi-family		565,102		530,853
1-4 family		66,735		46,496
Total commercial real estate		2,027,239		1,917,130
Commercial and industrial		1,264,111		1,151,720
Consumer and other		45,323		45,000
Total gross loans and leases receivable		3,336,673		3,113,850
Less:
Allowance for credit losses		36,690		35,785
Deferred loan fees and costs, net		1,717		722
Loans and leases receivable, net	$	3,298,266	$	3,077,343

Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market and participation interests in other, non-SBA originated loans.

The total principal amount of the guaranteed portions of SBA loans sold during the three months ended September 30, 2025 and 2024, was $5.2 million and $4.6 million, respectively. The total principal amount of the guaranteed portions of SBA loans sold during the nine months ended September 30, 2025 and 2024, was $17.4 million and $10.3 million, respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the three and nine months ended September 30, 2025 and 2024, have been derecognized in the unaudited Consolidated Financial Statements. The guaranteed portions of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the unaudited Consolidated Financial Statements. The total outstanding balance of sold SBA loans serviced by the Corporation at September 30, 2025, and December 31, 2024, was $83.5 million and $79.4 million, respectively.

The total principal amount of transferred participation interests in other, non-SBA originated loans during the three months ended September 30, 2025 and 2024, was $18.9 million and $31.4 million, respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. The total principal amount of transferred participation interests in other, non-SBA originated loans during the nine months ended September 30, 2025 and 2024, was $95.9 million and $90.0 million, respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. No gain or loss was recognized on participation interests in other, non-SBA originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represent adequate compensation. The total amount of other, non-SBA loan participations purchased on the Corporation's unaudited Consolidated Balance Sheet as of September 30, 2025 and December 31, 2024 were $16.1 million and $5.3 million, respectively. The total outstanding balance of transferred other, non-SBA loans serviced by the Corporation at September 30, 2025 and December 31, 2024, was $393.8 million and $373.1 million, respectively. As of September 30, 2025 and December 31, 2024, the total amount of the Corporation’s retained ownership of these transferred other, non-SBA loans was $454.8 million and $423.7 million, respectively. The Corporation does not share in the participant’s portion of any potential charge-offs.

The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-accrual loans by class of receivable, and considering certain credit quality indicators:


September 30, 2025	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2025	2024	2023	2022	2021	Prior	Revolving Loans Amortized Cost Basis	Total	Category as a % of total portfolio
Commercial real estate — owner occupied
Category
I	$46,381	$21,783	$40,701	$32,663	$32,405	$102,813	$1,892	$278,638	97.1%
II	—	—	2,026	—	—	—	—	2,026	0.7%
III	—	2,211	—	—	—	4,130	—	6,341	2.2%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$46,381	$23,994	$42,727	$32,663	$32,405	$106,943	$1,892	$287,005	100.0%
Commercial real estate — non-owner occupied
Category
I	$67,053	$86,598	$90,413	$86,699	$68,548	$398,897	$40,541	$838,749	96.2%
II	—	—	—	—	—	18,868	—	18,868	2.2%
III	—	—	—	—	—	14,190	—	14,190	1.6%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$67,053	$86,598	$90,413	$86,699	$68,548	$431,955	$40,541	$871,807	100.0%
Construction
Category
I	$11,466	$45,653	$112,294	$9,683	$591	$5,068	$37,254	$222,009	93.8%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	454	8,155	5,972	—	14,581	6.2%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$11,466	$45,653	$112,294	$10,137	$8,746	$11,040	$37,254	$236,590	100.0%
Multi-family
Category
I	$48,355	$18,894	$97,418	$92,800	$58,742	$226,433	$2,320	$544,962	96.4%
II	—	—	—	7,338	2,578	789	—	10,705	1.9%
III	—	—	—	—	8,410	1,025	—	9,435	1.7%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$48,355	$18,894	$97,418	$100,138	$69,730	$228,247	$2,320	$565,102	100.0%
1-4 family
Category
I	$16,524	$12,947	$1,429	$4,557	$2,053	$3,807	$25,418	$66,735	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$16,524	$12,947	$1,429	$4,557	$2,053	$3,807	$25,418	$66,735	100.0%
Commercial and industrial
Category
I	$188,128	$192,178	$153,791	$58,926	$38,358	$33,091	$452,978	$1,117,450	88.4%
II	—	14,303	13,976	6,017	1,401	2,721	35,490	73,908	5.8%
III	672	6,116	5,583	4,505	599	4,142	27,623	49,240	3.9%
IV	338	1,255	3,617	3,339	432	2,403	12,129	23,513	1.9%
Total	$189,138	$213,852	$176,967	$72,787	$40,790	$42,357	$528,220	$1,264,111	100.0%
Consumer and other
Category
I	$7,288	$6,371	$4,569	$5,625	$2,451	$12,489	$6,530	$45,323	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$7,288	$6,371	$4,569	$5,625	$2,451	$12,489	$6,530	$45,323	100.0%
Total Loans
Category
I	$385,195	$384,424	$500,615	$290,953	$203,148	$782,598	$566,933	$3,113,866	93.3%
II	—	14,303	16,002	13,355	3,979	22,378	35,490	105,507	3.2%
III	672	8,327	5,583	4,959	17,164	29,459	27,623	93,787	2.8%
IV	338	1,255	3,617	3,339	432	2,403	12,129	23,513	0.7%
Total	$386,205	$408,309	$525,817	$312,606	$224,723	$836,838	$642,175	$3,336,673	100.0%


December 31, 2024	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2024	2023	2022	2021	2020	Prior	Revolving Loans Amortized Cost Basis	Total	Category as a % of total portfolio
Commercial real estate — owner occupied
Category
I	$26,508	$45,066	$42,849	$34,486	$37,078	$85,405	$447	$271,839	99.4%
II	—	—	—	—	—	—	—	—	0.0%
III	750	—	—	—	—	217	—	967	0.4%
IV	—	—	—	—	—	591	—	591	0.2%
Total	$27,258	$45,066	$42,849	$34,486	$37,078	$86,213	$447	$273,397	100.0%
Commercial real estate — non-owner occupied
Category
I	$80,371	$85,651	$89,181	$69,129	$85,238	$340,802	$37,129	$787,501	93.2%
II	—	—	—	—	2,150	31,720	—	33,870	4.0%
III	—	638	—	—	—	23,289	—	23,927	2.8%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$80,371	$86,289	$89,181	$69,129	$87,388	$395,811	$37,129	$845,298	100.0%
Construction
Category
I	$36,135	$110,437	$24,302	$1,183	$719	$5,520	$28,205	$206,501	93.4%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	454	8,155	5,713	263	—	14,585	6.6%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$36,135	$110,437	$24,756	$9,338	$6,432	$5,783	$28,205	$221,086	100.0%
Multi-family
Category
I	$40,079	$102,886	$74,753	$66,775	$97,303	$134,331	$2,288	$518,415	97.6%
II	—	—	7,407	2,584	—	1,043	—	11,034	2.1%
III	—	—	—	1,404	—	—	—	1,404	0.3%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$40,079	$102,886	$82,160	$70,763	$97,303	$135,374	$2,288	$530,853	99.9%
1-4 family
Category
I	$15,220	$4,200	$7,005	$2,336	$2,282	$2,178	$13,275	$46,496	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$15,220	$4,200	$7,005	$2,336	$2,282	$2,178	$13,275	$46,496	100.0%
Commercial and industrial
Category
I	$259,976	$216,621	$93,119	$52,066	$23,960	$27,370	$405,499	$1,078,611	93.7%
II	316	2,700	2,657	—	470	8	7,676	13,827	1.2%
III	4,205	5,418	3,909	1,379	2,446	3,957	10,192	31,506	2.7%
IV	536	4,060	6,245	1,038	274	2,519	13,104	27,776	2.4%
Total	$265,033	$228,799	$105,930	$54,483	$27,150	$33,854	$436,471	$1,151,720	100.0%
Consumer and other
Category
I	$6,955	$5,244	$7,416	$2,764	$10,994	$3,885	$7,742	$45,000	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$6,955	$5,244	$7,416	$2,764	$10,994	$3,885	$7,742	$45,000	100.0%
Total Loans
Category
I	$465,244	$570,105	$338,625	$228,739	$257,574	$599,491	$494,585	$2,954,363	94.9%
II	316	2,700	10,064	2,584	2,620	32,771	7,676	58,731	1.9%
III	4,955	6,056	4,363	10,938	8,159	27,726	10,192	72,389	2.3%
IV	536	4,060	6,245	1,038	274	3,110	13,104	28,367	0.9%
Total	$471,051	$582,921	$359,297	$243,299	$268,627	$663,098	$525,557	$3,113,850	100.0%

Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation primarily uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent

definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is determined based on various quantitative and qualitative factors and is subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management.

Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team, or the industry in which the borrower operates. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers, and continued review of such borrowers’ compliance with the terms of their respective agreements.

Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends, or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by asset quality review committees.

Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and asset quality review committees on a monthly basis.

Category IV — Loans and leases in this category are non-accrual loans. Management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Non-accrual loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded. Loans and leases in this category are monitored by management and asset quality review committees on a monthly basis.

The delinquency aging of the loan and lease portfolio by class of receivable was as follows:


	September 30, 2025
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days Past Due			Total Past Due			Current			Total Loans and Leases
	(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied	$	—		$	—		$	—		$	—		$	287,005		$	287,005
Non-owner occupied		3,593			—			—			3,593			868,214			871,807
Construction		—			—			—			—			236,590			236,590
Multi-family		—			—			—			—			565,102			565,102
1-4 family		—			—			—			—			66,735			66,735
Commercial and industrial		1,175			774			16,474			18,423			1,245,688			1,264,111
Consumer and other		—			—			—			—			45,323			45,323
Total	$	4,768		$	774		$	16,474		$	22,016		$	3,314,657		$	3,336,673
Percent of portfolio		0.14	%		0.02	%		0.49	%		0.65	%		99.35	%		100.00	%


	December 31, 2024
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days Past Due			Total Past Due			Current			Total Loans and Leases
	(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied	$	1,102		$	—		$	—		$	1,102		$	272,295		$	273,397
Non-owner occupied		—			—			—			—			845,298			845,298
Construction		14,321			263			—			14,584			206,502			221,086
Multi-family		—			—			—			—			530,853			530,853
1-4 family		—			—			—			—			46,496			46,496
Commercial and industrial		5,405			1,072			18,984			25,461			1,126,259			1,151,720
Consumer and other		—			10			—			10			44,990			45,000
Total	$	20,828		$	1,345		$	18,984		$	41,157		$	3,072,693		$	3,113,850
Percent of portfolio		0.67	%		0.04	%		0.61	%		1.32	%		98.68	%		100.00	%

The following tables provide additional detail on loans on non-accrual status and loans past due over 89 days still accruing as of:


	September 30, 2025
	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	—	$	—	$	—
Commercial real estate — non-owner occupied		—		—		—
Construction		—		—		—
Multi-family		—		—		—
1-4 family		—		—		—
Total commercial real estate		—		—		—
Commercial and industrial		8,331		15,182		—
Consumer and other		—		—		—
Total non-accrual loans and leases	$	8,331	$	15,182	$	—


	December 31, 2024
	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	—	$	591	$	—
Commercial real estate — non-owner occupied		—		—		—
Construction		—		—		—
Multi-family		—		—		—
1-4 family		—		—		—
Total commercial real estate		—		591		—
Commercial and industrial		13,125		14,651		—
Consumer and other		—		—		—
Total non-accrual loans and leases	$	13,125	$	15,242	$	—


	September 30, 2025			December 31, 2024
Total non-accrual loans and leases to gross loans and leases		0.70	%		0.91	%
Allowance for credit losses to gross loans and leases		1.15			1.20
Allowance for credit losses to non-accrual loans and leases		163.24			131.38

The following table presents the amortized cost basis of the non-accrual, collateral-dependent loans as of:


	September 30, 2025		December 31, 2024
	(In Thousands)
Equipment	$	16,097	$	12,178
Real Estate		935		7,724
Accounts Receivable		6,113		6,570
Other		504		2,053
Total	$	23,649	$	28,525

Occasionally, the Corporation modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

The following table presents the amortized cost basis of loans at September 30, 2025 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2025 and 2024, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized costs basis of each class of financing receivable is also presented below.


	For the Nine Months Ended September 30, 2025
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension		Total		Total Class of Financing Receivable
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—	$	—	$	—		0.00	%
Commercial and industrial		—		—		—		302		6,016		6,318		0.50
Total	$	—	$	—	$	—	$	302	$	6,016	$	6,318		0.19	%


	For the Nine Months Ended September 30, 2024
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension		Total		Total Class of Financing Receivable
	(In Thousands)
Commercial real estate	$	—	$	5,901	$	—	$	—	$	—	$	5,901		0.32	%
Commercial and industrial		—		1,847		477		—		—		2,324		0.20
Total	$	—	$	7,748	$	477	$	—	$	—	$	8,225		0.27	%

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months:

          
         For the Nine Months Ended September 30, 2025

          
         30-59
Days Past
Due

         60-89
Days Past
Due

         Greater
Than 90
Days Past
Due

         Total Past
Due

          
         (Dollars in Thousands)

Commercial real estate

—

—

—

—

Commercial and industrial

—

—

—

—

Total

—

—

—

—


	For the Nine Months Ended September 30, 2024
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due
	(Dollars in Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		360		50		410
Total	$	—	$	360	$	50	$	410

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2025 and 2024:


	For the Nine Months Ended September 30, 2025
(Dollars in Thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction			Weighted Average Term Extension (years)		Weighted Average Payment Delay (years)
Commercial real estate	$	—		0.00	%		0.00		0.00
Commercial and industrial		—		2.25			0.50		0.50
Total	$	—		2.25	%		0.50		0.50


	For the Nine Months Ended September 30, 2024
(Dollars in Thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction			Weighted Average Term Extension (years)		Weighted Average Payment Delay (years)
Commercial real estate	$	—		0.00	%		0.00		0.75
Commercial and industrial		—		0.00			1.01		0.67
Total	$	—		0.00	%		1.01		1.42

The following table presents the amortized cost basis of loans that had a payment default during the nine months ended September 30, 2025 and 2024 and were modified in the 12 months prior to that default to borrowers experience financial difficulty:


	For the Nine Months Ended September 30, 2025
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		—		397		—
Total	$	—	$	—	$	397	$	—


	For the Nine Months Ended September 30, 2024
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		753		—		—
Total	$	—	$	753	$	—	$	—

Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 – Nature of Operations and Summary of Significant Accounting Policies included in the Corporation’s Form 10-K for the year ended December 31, 2024.

Quantitative Considerations

The ACL is primarily calculated utilizing a Discounted Cash Flow (“DCF”) model. Key inputs and assumptions used in this model are discussed below:

•

Forecast model - For each portfolio segment, a Loss Driver Analysis (“LDA”) was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized peer FFIEC Call Report data for all DCF pools. The Corporation plans to update the LDA annually.

•

Probability of Default ("PD") – PD is the probability that an asset will be in default within a given time frame. The Corporation has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs.

•

Loss Given Default ("LGD") – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from using a method referred to as Frye Jacobs which uses industry data.

•

Prepayments and curtailments – Prepayments and curtailments are calculated based on the Corporation’s own data. This analysis is updated semi-annually.

•

Forecast and reversion – The Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

•

Economic forecast – The Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. As of December 31, 2024, the Corporation selected a forecast which estimates unemployment between 4.12% and 4.20% and GDP growth change between 1.85% and 2.65% over the next four quarters. As of September 30, 2025, the Corporation selected a forecast which estimates unemployment between 4.36% and 4.75% and GDP growth change between 1.34% and 1.82% over the next four quarters. Following the forecast period, the model reverts to long-term averages over four quarters. Management believes that the resulting quantitative reserve appropriately balances economic indicators with identified risks.

Qualitative Considerations

In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below:

•

The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;

•

Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets;

•

The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff;

•

The volume of past due financial assets, the volume of non-accrual loans and leases, and the volume and severity of adversely classified or graded assets;

•

The existence and effect of industry concentrations of credit;

•

The nature and volume of the portfolio segment or class;

•

The quality of the Corporation’s credit function; and

•

The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics.

ACL Activity

A summary of the activity in the allowance for credit losses by portfolio segment is as follows:


	As of and for the Three Months Ended September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,685	$	6,330	$	2,467	$	6,059	$	429	$	20,836		$	404		$	38,210
Charge-offs		—		—		—		—		—		(1,706	)		(2	)		(1,708	)
Recoveries		—		—		—		—		6		434			—			440
Net recoveries (charge-offs)		—		—		—		—		6		(1,272	)		(2	)		(1,268	)
Provision (credit) for credit losses		160		421		374		59		118		357			(49	)		1,440
Ending balance	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382
Components:
Allowance for credit losses on loans	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282		$	322		$	36,690
Allowance for credit losses on unfunded credit commitments		8		62		911		15		26		639			31			1,692
Total ACL	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382


	As of and for the Three Months Ended September 30, 2024
	Owner Occupied		Non-Owner Occupied			Construction		Multi- Family			1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,531	$	6,415		$	3,045	$	3,752		$	461	$	19,280		$	466		$	34,950
Charge-offs		—		—			—		—			—		(1,619	)		—			(1,619	)
Recoveries		1		—			—		—			6		84			—			91
Net recoveries (charge-offs)		1		—			—		—			6		(1,535	)		—			(1,528	)
Provision (credit) for credit losses		70		(325	)		483		(17	)		12		1,911			(47	)		2,087
Ending balance	$	1,602	$	6,090		$	3,528	$	3,735		$	479	$	19,656		$	419		$	35,509
Components:
Allowance for credit losses on loans	$	1,588	$	6,048		$	2,518	$	3,710		$	439	$	19,010		$	375		$	33,688
Allowance for credit losses on unfunded credit commitments		14		42			1,010		25			40		646			44			1,821
Total ACL	$	1,602	$	6,090		$	3,528	$	3,735		$	479	$	19,656		$	419		$	35,509


	As of and for the Nine Months Ended September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,629	$	5,892	$	2,826	$	4,613	$	523	$	21,470		$	315		$	37,268
Charge-offs		—		—		—		—		—		(6,844	)		(12	)		(6,856	)
Recoveries		2		—		—		—		19		1,149			—			1,170
Net recoveries (charge-offs)		2		—		—		—		19		(5,695	)		(12	)		(5,686	)
Provision for credit losses		214		859		15		1,505		11		4,146			50			6,800
Ending balance	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382
Components:
Allowance for credit losses on loans	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282		$	322		$	36,690
Allowance for credit losses on unfunded credit commitments		8		62		911		15		26		639			31			1,692
Total ACL	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382


	As of and for the Nine Months Ended September 30, 2024
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,540	$	5,636	$	2,125	$	3,571	$	266	$	19,408		$	451		$	32,997
Charge-offs		—		—		—		—		—		(4,101	)		(22	)		(4,123	)
Recoveries		2		—		—		—		121		365			21			509
Net recoveries (charge-offs)		2		—		—		—		121		(3,736	)		(1	)		(3,614	)
Provision for credit losses		60		454		1,403		164		92		3,984			(31	)		6,126
Ending balance	$	1,602	$	6,090	$	3,528	$	3,735	$	479	$	19,656		$	419		$	35,509
Components:
Allowance for credit losses on loans	$	1,588	$	6,048	$	2,518	$	3,710	$	439	$	19,010		$	375		$	33,688
Allowance for credit losses on unfunded credit commitments		14		42		1,010		25		40		646			44			1,821
Total ACL	$	1,602	$	6,090	$	3,528	$	3,735	$	479	$	19,656		$	419		$	35,509

ACL Summary

Loans collectively evaluated for credit losses in the following tables include all performing loans at September 30, 2025 and December 31, 2024. Loans individually evaluated for credit losses include all non-accrual loans.

The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology.


	As of September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial		Consumer and Other		Total
	(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	13,657	$	322	$	31,065
Individually evaluated for credit loss		—		—		—		—		—		5,625		—		5,625
Total	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282	$	322	$	36,690
Loans and lease receivables:
Collectively evaluated for credit losses	$	287,005	$	871,807	$	236,590	$	565,102	$	66,735	$	1,240,598	$	45,323	$	3,313,160
Individually evaluated for credit loss		—		—		—		—		—		23,513		—		23,513
Total	$	287,005	$	871,807	$	236,590	$	565,102	$	66,735	$	1,264,111	$	45,323	$	3,336,673


	As of December 31, 2024
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial		Consumer and Other		Total
	(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses	$	1,615	$	5,843	$	2,022	$	4,597	$	492	$	12,016	$	282	$	26,867
Individually evaluated for credit loss		—		—		—		—		—		8,918		—		8,918
Total	$	1,615	$	5,843	$	2,022	$	4,597	$	492	$	20,934	$	282	$	35,785
Loans and lease receivables:
Collectively evaluated for credit losses	$	272,806	$	845,298	$	221,086	$	530,853	$	46,496	$	1,123,944	$	45,000	$	3,085,483
Individually evaluated for credit loss		591		—		—		—		—		27,776		—		28,367
Total	$	273,397	$	845,298	$	221,086	$	530,853	$	46,496	$	1,151,720	$	45,000	$	3,113,850