
(In thousands)	September 30, 2025		December 31, 2024
Commercial and industrial	$	871,873	$	817,422
Construction		210,207		247,055
Residential real estate		36,286		27,422
Commercial real estate		838,759		773,259
Consumer		2,314		957
Total outstanding loans		1,959,439		1,866,115
Deferred loan origination fees, net		(854)		(1,173)
Allowance for credit losses on loans		(21,025)		(18,679)
Total loans, net of allowance for credit losses on loans	$	1,937,560	$	1,846,263

From time to time, the Bank pledges loans as collateral under a short-term borrowing arrangement through the Discount Window of the Federal Reserve Bank. The Bank has pledged a total of $949.2 million and $897.5 million of loans for borrowing capacity of $839.4 million and $786.5 million at September 30, 2025 and December 31, 2024, respectively. The Bank had no Federal Reserve Bank borrowings outstanding that were secured by loans as of September 30, 2025 and December 31, 2024.

The Bank has entered into an agreement providing for the pledging of loans for borrowing capacity with the Federal Home Loan Bank. The Bank pledged a total of $764.5 million of loans for remaining borrowing capacity of $500.2 million at September 30, 2025. In comparison, the Bank pledged a total of $654.8 million of loans for remaining borrowing capacity of $391.2 million at December 31, 2024. There were no FHLB borrowings outstanding at September 30 2025. Comparatively, the Bank had $70.0 million in FHLB borrowings outstanding at December 31, 2024. See Note 7 – Subordinated Debt and Other Borrowing Arrangements.