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Allowance for Credit Losses | 6 Months Ended
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Jun. 30, 2025
Allowance for Credit Loss [Abstract] |
Allowance for Credit Losses | 4. ALLOWANCE FOR CREDIT LOSSES The segments of the Company’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The loan segments used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio and, therefore, no further disaggregation is considered necessary. The Company’s loan portfolio consists primarily of real estate loans on commercial and residential property. The portfolio also includes agricultural loans, commercial loans, municipal loans, and consumer loans. The Company’s primary lending activity is the origination of commercial loans extended to small and mid-sized commercial and industrial entities. Commercial loans are primarily underwritten on the basis of the borrowers’ ability to service such debt from income. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. As a general practice, the Company takes as collateral a security interest in any equipment, or other chattel, although loans may also be made on an unsecured basis. Collateralized working capital loans typically are secured by short-term assets whereas long-term loans are primarily secured by long-term assets. Construction and Land loans are to finance the construction of owner-occupied and income producing properties. These loans are categorized within commercial or one-to-four family residential loans based upon the underlying collateral and intended use following the completion of the construction period. Real estate development and construction loans are approved based on an analysis of the borrower and guarantor, the viability of the project and on an acceptable percentage of the appraised value of the property securing the loan. Construction loan funds are disbursed periodically based on the percentage of construction or development completed. The Company carefully monitors these loans with on-site inspections and requires the receipt of lien waivers on funds advanced. The Company considers the market conditions and feasibility of proposed projects, the financial condition and reputation of the borrower and guarantors, the amount of the borrower’s equity in the project, independent appraisals, cost estimates and pre-construction sale information. The Company also makes loans on occasion for the purchase of land for future development by the borrower. Land loans are extended for the future development for either commercial or residential use by the borrower. The Company carefully analyzes the intended use of the property and the viability thereof. The Company’s commercial real estate loans consist of mortgage loans secured by nonresidential real estate, such as by apartment buildings, small office buildings, and owner-occupied properties. Commercial real estate loans are secured by the subject property and are underwritten based on loan to value limits, cash flow coverage and general creditworthiness of the obligors. These loans tend to involve larger loan balances and their repayment is typically dependent upon the successful operation and management of the underlying real estate. Residential real estate loans are underwritten based on the borrower’s repayment capacity and source, value of the underlying property, credit history and stability. These loans are secured by a first or second mortgage on the borrower’s principal residence or their second/vacation home (excluding investment/rental property). In addition to the main types of loans discussed above, the Company also originates agricultural loans, consumer loans, and municipal loans. The agricultural loan portfolio consists of loans to local farmers and agricultural businesses that are generally secured by farmland and equipment. The consumer loan portfolio consists of lending in the form of home equity loans secured by financed property and personal consumer loans, which may be secured or unsecured. The municipal loan portfolio consists of loans to qualified local municipalities, which are generally supported by the taxing authority of the borrowing municipality, and is frequently secured by collateral. Management systematically monitors the loan portfolio and the appropriateness of the allowance for credit losses on a quarterly basis to provide for expected losses inherent in the portfolio. For segments determined by discounted cash flow analysis, the Company's estimate of future economic conditions utilized in its estimate is primarily dependent on the Federal Open Market Committee's forecasts related to Real Gross Domestic Product and Unemployment rate. For segments determined by the remaining life method, an average loss rate is generally calculated based on peer losses and applied to the future outstanding loan balances at quarter end. Certain qualitative factors are then added to the historical allocation percentage to get the adjusted factor to be applied to non-classified loans. The following qualitative factors are analyzed for each portfolio segment: • Levels of and trends in delinquencies • Trends in volume and terms • Changes in collateral • Changes in management and lending staff • Economic trends • Concentrations of credit • Changes in lending policies • External factors • Changes in underwriting process • Trends in credit quality ratings These qualitative factors are reviewed each quarter and adjusted based upon relevant changes within the portfolio. The total allowance reflects management’s estimate of credit losses inherent in the loan portfolio at the Consolidated Balance Sheet date. The Company considers the allowance for credit losses adequate to cover loan losses inherent in the loan portfolio at June 30, 2025 and December 31, 2024. Accrued interest receivable on loans totaled $8,644 and $8,714 at June 30, 2025 and December 31, 2024, respectively, and was reported within accrued interest receivable and other assets on the consolidated balance sheets and is excluded from the estimate of credit losses. The following tables summarize the activity in the allowance for credit losses by loan segment for the three and six months ended June 30, 2025 and 2024.
|  | Beginning balance |  |  | Charge-offs |  |  | Charge-offs on PCD Acquired Loans |  |  | Recoveries |  |  | Provision for credit losses |  |  | Ending balance |
(In Thousands) |  | For the Three Months Ended June 30, 2025 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agriculture and farmland |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1 | ) |  | $ | 9 |
Construction |  |  | 1,360 |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 116 |  |  |  | 1,478 |
Commercial & industrial |  |  | 4,403 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (161 | ) |  |  | 4,242 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | 1,813 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 66 |  |  |  | 1,879 |
Owner occupied |  |  | 5,339 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 423 |  |  |  | 5,763 |
Non-owner occupied |  |  | 9,050 |  |  |  | (35 | ) |  |  | (2,018 | ) |  |  | — |  |  |  | (273 | ) |  |  | 6,724 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 3,299 |  |  |  | (3 | ) |  |  | — |  |  |  | 5 |  |  |  | (74 | ) |  |  | 3,227 |
Second liens and lines of credit |  |  | 1,208 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (20 | ) |  |  | 1,188 |
Municipal |  |  | 36 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 37 |
Consumer |  |  | 101 |  |  |  | (11 | ) |  |  | — |  |  |  | 1 |  |  |  | 13 |  |  |  | 104 |
Total |  | $ | 26,619 |  |  | $ | (49 | ) |  | $ | (2,018 | ) |  | $ | 9 |  |  | $ | 90 |  |  | $ | 24,651 |
|  | Beginning balance |  |  | Charge-offs |  |  | Recoveries |  |  | Allowance for Credit Losses on PCD Acquired Loans |  |  | Provision for credit losses |  |  | Ending balance |
(In Thousands) |  | For the Three Months Ended June 30, 2024 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agriculture and farmland |  | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |
Construction |  |  | 1,523 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 316 |  |  |  | 1,841 |
Commercial & industrial |  |  | 2,962 |  |  |  | (4 | ) |  |  | 6 |  |  |  | — |  |  |  | 471 |  |  |  | 3,435 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | 1,592 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 320 |  |  |  | 1,914 |
Owner occupied |  |  | 5,738 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 143 |  |  |  | 5,881 |
Non-owner occupied |  |  | 6,099 |  |  |  | — |  |  |  | 4 |  |  |  | 2,300 |  |  |  | (377 | ) |  |  | 8,026 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 4,675 |  |  |  | — |  |  |  | 6 |  |  |  | — |  |  |  | (634 | ) |  |  | 4,047 |
Second liens and lines of credit |  |  | 1,071 |  |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | (97 | ) |  |  | 977 |
Municipal |  |  | 68 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4 | ) |  |  | 64 |
Consumer |  |  | 102 |  |  |  | (2 | ) |  |  | 3 |  |  |  | — |  |  |  | (12 | ) |  |  | 91 |
Total |  | $ | 23,842 |  |  | $ | (6 | ) |  | $ | 26 |  |  | $ | 2,300 |  |  | $ | 126 |  |  | $ | 26,288 |
|  | Beginning balance |  |  | Charge-offs |  |  | Charge-offs on PCD Acquired Loans |  |  | Recoveries |  |  | Provision for credit losses |  |  | Ending balance |
(In Thousands) |  | For the Six Months Ended June 30, 2025 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agriculture and farmland |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (2 | ) |  | $ | 9 |
Construction |  |  | 893 |  |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | 582 |  |  |  | 1,478 |
Commercial & industrial |  |  | 4,093 |  |  |  | (74 | ) |  |  | — |  |  |  | 4 |  |  |  | 219 |  |  |  | 4,242 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | 1,805 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 74 |  |  |  | 1,879 |
Owner occupied |  |  | 5,611 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 151 |  |  |  | 5,763 |
Non-owner occupied |  |  | 9,345 |  |  |  | (35 | ) |  |  | (2,018 | ) |  |  | — |  |  |  | (568 | ) |  |  | 6,724 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 3,395 |  |  |  | (3 | ) |  |  | — |  |  |  | 9 |  |  |  | (174 | ) |  |  | 3,227 |
Second liens and lines of credit |  |  | 1,154 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 33 |  |  |  | 1,188 |
Municipal |  |  | 48 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (11 | ) |  |  | 37 |
Consumer |  |  | 80 |  |  |  | (29 | ) |  |  |  |  |  | 2 |  |  |  | 51 |  |  |  | 104 |
Total |  | $ | 26,435 |  |  | $ | (141 | ) |  | $ | (2,018 | ) |  | $ | 20 |  |  | $ | 355 |  |  | $ | 24,651 |
|  | Beginning balance |  |  | Charge-offs |  |  | Recoveries |  |  | Allowance for Credit Losses on PCD Acquired Loans |  |  | Provision for credit losses |  |  | Ending balance |
(In Thousands) |  | For the Six Months Ended June 30, 2024 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agriculture and farmland |  | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |
Construction |  |  | 959 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 880 |  |  |  | 1,841 |
Commercial & industrial |  |  | 2,940 |  |  |  | (10 | ) |  |  | 8 |  |  |  | — |  |  |  | 497 |  |  |  | 3,435 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | 1,483 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 429 |  |  |  | 1,914 |
Owner occupied |  |  | 6,572 |  |  |  | (6 | ) |  |  | 1 |  |  |  | — |  |  |  | (686 | ) |  |  | 5,881 |
Non-owner occupied |  |  | 5,773 |  |  |  | (54 | ) |  |  | 4 |  |  |  | 2,300 |  |  |  | 3 |  |  |  | 8,026 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 4,778 |  |  |  | — |  |  |  | 13 |  |  |  | — |  |  |  | (744 | ) |  |  | 4,047 |
Second liens and lines of credit |  |  | 1,072 |  |  |  | — |  |  |  | 10 |  |  |  | — |  |  |  | (105 | ) |  |  | 977 |
Municipal |  |  | 79 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (15 | ) |  |  | 64 |
Consumer |  |  | 99 |  |  |  | (25 | ) |  |  | 5 |  |  |  | — |  |  |  | 12 |  |  |  | 91 |
Total |  | $ | 23,767 |  |  | $ | (95 | ) |  | $ | 45 |  |  | $ | 2,300 |  |  | $ | 271 |  |  | $ | 26,288 |
The following tables present the amortized cost basis of nonaccrual loans and loans past due 90 days or greater and still accruing by segments of the loan portfolio:
|  | As of June 30, 2025 |
(In Thousands) |  | Nonaccrual with No Allowance for Credit Loss |  |  | Nonaccrual with a related Allowance for Credit Loss |  |  | Total Nonaccrual |  |  | Loans 90 days or greater past due still accruing |
Agriculture and farmland |  | $ | — |  |  | $ | 362 |  |  | $ | 362 |  |  | $ | 20 |
Construction |  |  | 151 |  |  |  | 9 |  |  |  | 160 |  |  |  | — |
Commercial & industrial |  |  | 1,780 |  |  |  | 4,700 |  |  |  | 6,480 |  |  |  | 300 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Owner occupied |  |  | 944 |  |  |  | 8,039 |  |  |  | 8,983 |  |  |  | — |
Non-owner occupied |  |  | — |  |  |  | 2,906 |  |  |  | 2,906 |  |  |  | — |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | — |  |  |  | 2,149 |  |  |  | 2,149 |  |  |  | 58 |
Second liens and lines of credit |  |  | — |  |  |  | 460 |  |  |  | 460 |  |  |  | — |
Municipal |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 2,875 |  |  | $ | 18,625 |  |  | $ | 21,500 |  |  | $ | 378 |
|  | December 31, 2024 |
(In Thousands) |  | Nonaccrual with No Allowance for Credit Loss |  |  | Nonaccrual with a related Allowance for Credit Loss |  |  | Total Nonaccrual |  |  | Loans 90 days or greater past due still accruing |
Agriculture and farmland |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction |  |  | 9 |  |  |  | — |  |  |  | 9 |  |  |  | 157 |
Commercial & industrial |  |  | 125 |  |  |  | 7 |  |  |  | 132 |  |  |  | — |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Owner occupied |  |  | 6,171 |  |  |  | 3,581 |  |  |  | 9,752 |  |  |  | — |
Non-owner occupied |  |  | 398 |  |  |  | 3,931 |  |  |  | 4,329 |  |  |  | — |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 1,975 |  |  |  | — |  |  |  | 1,975 |  |  |  | 289 |
Second liens and lines of credit |  |  | 482 |  |  |  | — |  |  |  | 482 |  |  |  | — |
Municipal |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 48 |
Total |  | $ | 9,160 |  |  | $ | 7,519 |  |  | $ | 16,679 |  |  | $ | 494 |
The Company recognized $93 and $217 of interest income on nonaccrual loans during the three and six months ended June 30, 2025, respectively, and $88 and $111 for the three and six months ended June 30, 2024, respectively. The following tables present, by class of loans, the carrying value of collateral dependent nonaccrual loans and type of collateral as of June 30, 2025 and December 31, 2024.
|  | June 30, 2025 |
(In Thousands) |  | Real Estate |  |  | Business Assets |  |  | Other |  |  | Total |
Agriculture and farmland loans |  | $ | 362 |  |  | $ | — |  |  | $ | — |  |  | $ | 362 |
Construction |  |  | 160 |  |  |  | — |  |  |  | — |  |  |  | 160 |
Commercial & industrial loans |  |  | 5,840 |  |  |  | 640 |  |  |  | — |  |  |  | 6,480 |
Commercial real estate loans |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Owner occupied |  |  | 8,983 |  |  |  | — |  |  |  | — |  |  |  | 8,983 |
Non-owner occupied |  |  | 2,906 |  |  |  | — |  |  |  | — |  |  |  | 2,906 |
Residential real estate loans |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 2,149 |  |  |  | — |  |  |  | — |  |  |  | 2,149 |
Second liens and lines of credit |  |  | 460 |  |  |  | — |  |  |  | — |  |  |  | 460 |
Municipal |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 20,860 |  |  | $ | 640 |  |  | $ | — |  |  | $ | 21,500 |
|  | December 31, 2024 |
(In Thousands) |  | Real Estate |  |  | Business Assets |  |  | Other |  |  | Total |
Agriculture and farmland loans |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction |  |  | 9 |  |  |  | — |  |  |  | — |  |  |  | 9 |
Commercial & industrial loans |  |  | — |  |  |  | 132 |  |  |  | — |  |  |  | 132 |
Commercial real estate loans |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Owner occupied |  |  | 9,752 |  |  |  | — |  |  |  | — |  |  |  | 9,752 |
Non-owner occupied |  |  | 4,329 |  |  |  | — |  |  |  | — |  |  |  | 4,329 |
Residential real estate loans |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 1,975 |  |  |  | — |  |  |  | — |  |  |  | 1,975 |
Second liens and lines of credit |  |  | 482 |  |  |  | — |  |  |  | — |  |  |  | 482 |
Municipal |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 16,547 |  |  | $ | 132 |  |  | $ | — |  |  | $ | 16,679 |
The following tables present an aging analysis of the recorded investment of past due loans at June 30, 2025 and December 31, 2024.
| June 30, 2025 |
(In Thousands) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or Greater Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |
Agriculture and farmland |  | $ | 323 |  |  | $ | — |  |  | $ | 382 |  |  | $ | 705 |  |  | $ | 61,291 |  |  | $ | 61,996 |
Construction |  |  | — |  |  |  | — |  |  |  | 9 |  |  |  | 9 |  |  |  | 140,967 |  |  |  | 140,976 |
Commercial & industrial |  |  | 394 |  |  |  | 6,065 |  |  |  | 700 |  |  |  | 7,159 |  |  |  | 252,718 |  |  |  | 259,877 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | — |  |  |  | 311 |  |  |  | — |  |  |  | 311 |  |  |  | 231,158 |  |  |  | 231,469 |
Owner occupied |  |  | 875 |  |  |  | 587 |  |  |  | 8,983 |  |  |  | 10,445 |  |  |  | 492,070 |  |  |  | 502,515 |
Non-owner occupied |  |  | 2,629 |  |  |  | 23 |  |  |  | 277 |  |  |  | 2,929 |  |  |  | 678,592 |  |  |  | 681,521 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 2,422 |  |  |  | 684 |  |  |  | 716 |  |  |  | 3,822 |  |  |  | 372,057 |  |  |  | 375,879 |
Second liens and lines of credit |  |  | 192 |  |  |  | 34 |  |  |  | 301 |  |  |  | 527 |  |  |  | 80,667 |  |  |  | 81,194 |
Municipal |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,917 |  |  |  | 2,917 |
Consumer |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 17,524 |  |  |  | 17,525 |
Total |  | $ | 6,836 |  |  | $ | 7,704 |  |  | $ | 11,368 |  |  | $ | 25,908 |  |  | $ | 2,329,961 |  |  | $ | 2,355,869 |
| December 31, 2024 |
(In Thousands) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or Greater Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |
Agriculture and farmland |  | $ | 23 |  |  | $ | — |  |  | $ | — |  |  | $ | 23 |  |  | $ | 67,718 |  |  | $ | 67,741 |
Construction |  |  | 197 |  |  |  | — |  |  |  | 166 |  |  |  | 363 |  |  |  | 152,256 |  |  |  | 152,619 |
Commercial & industrial |  |  | 41 |  |  |  | — |  |  |  | 90 |  |  |  | 131 |  |  |  | 245,702 |  |  |  | 245,833 |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | 314 |  |  |  | — |  |  |  | — |  |  |  | 314 |  |  |  | 211,464 |  |  |  | 211,778 |
Owner occupied |  |  | 334 |  |  |  | 660 |  |  |  | 8,768 |  |  |  | 9,762 |  |  |  | 467,980 |  |  |  | 477,742 |
Non-owner occupied |  |  | — |  |  |  | — |  |  |  | 398 |  |  |  | 398 |  |  |  | 627,839 |  |  |  | 628,237 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  |  | 686 |  |  |  | 317 |  |  |  | 1,220 |  |  |  | 2,223 |  |  |  | 371,246 |  |  |  | 373,469 |
Second liens and lines of credit |  |  | 191 |  |  |  | 119 |  |  |  | 276 |  |  |  | 586 |  |  |  | 76,127 |  |  |  | 76,713 |
Municipal |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,886 |  |  |  | 3,886 |
Consumer |  |  | 7 |  |  |  | 1 |  |  |  | 48 |  |  |  | 56 |  |  |  | 17,030 |  |  |  | 17,086 |
Total |  | $ | 1,793 |  |  | $ | 1,097 |  |  | $ | 10,966 |  |  | $ | 13,856 |  |  | $ | 2,241,248 |  |  | $ | 2,255,104 |
Credit Quality Information The following tables represent credit exposures by internally assigned grades as of June 30, 2025 and December 31, 2024. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internally assigned grades are as follows: Pass – loans that are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. There are four sub-grades within the Pass category to further distinguish the loan. Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful – loans classified as Doubtful have all the weaknesses inherent in a Substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. Loss – loans classified as a Loss are considered uncollectible and are immediately charged against allowances. The following tables present the classes of the loan portfolio summarized by the internal risk rating system as of June 30, 2025.
|  | June 30, 2025 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
(In Thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving loans amortized cost basis |  |  | Revolving loans converted to term |  |  | Total |
Agriculture and farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 667 |  |  | $ | 10,319 |  |  | $ | 760 |  |  | $ | 13,318 |  |  | $ | 8,251 |  |  | $ | 23,187 |  |  | $ | 3,961 |  |  | $ | 20 |  |  | $ | 60,483 |
Special mention |  |  | — |  |  |  | — |  |  |  | 245 |  |  |  | — |  |  |  | — |  |  |  | 177 |  |  |  | 250 |  |  |  | — |  |  |  | 672 |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 841 |  |  |  | — |  |  |  | — |  |  |  | 841 |
Total Agriculture and farmland |  | $ | 667 |  |  | $ | 10,319 |  |  | $ | 1,005 |  |  | $ | 13,318 |  |  | $ | 8,251 |  |  | $ | 24,205 |  |  | $ | 4,211 |  |  | $ | 20 |  |  | $ | 61,996 |
Agriculture and farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 14,826 |  |  |  | 40,923 |  |  |  | 35,671 |  |  |  | 17,304 |  |  |  | 17,181 |  |  |  | 6,372 |  |  |  | 8,194 |  |  |  | — |  |  |  | 140,471 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | 505 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 505 |
Total Construction |  |  | 14,826 |  |  |  | 40,923 |  |  |  | 36,176 |  |  |  | 17,304 |  |  |  | 17,181 |  |  |  | 6,372 |  |  |  | 8,194 |  |  |  | — |  |  |  | 140,976 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 24,177 |  |  |  | 40,393 |  |  |  | 20,448 |  |  |  | 15,291 |  |  |  | 16,462 |  |  |  | 12,019 |  |  |  | 113,558 |  |  |  | 4,329 |  |  |  | 246,677 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,377 |  |  |  | 66 |  |  |  | — |  |  |  | 1,309 |  |  |  | — |  |  |  | 5,752 |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | 15 |  |  |  | 383 |  |  |  | — |  |  |  | 247 |  |  |  | 6,803 |  |  |  | — |  |  |  | 7,448 |
Total Commercial & industrial |  |  | 24,177 |  |  |  | 40,393 |  |  |  | 20,463 |  |  |  | 20,051 |  |  |  | 16,528 |  |  |  | 12,266 |  |  |  | 121,670 |  |  |  | 4,329 |  |  |  | 259,877 |
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | 74 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 74 |
Commercial real estate - Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 23,034 |  |  |  | 34,083 |  |  |  | 17,900 |  |  |  | 78,381 |  |  |  | 48,650 |  |  |  | 28,983 |  |  |  | 438 |  |  |  | — |  |  |  | 231,469 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Commercial real estate - Multifamily |  |  | 23,034 |  |  |  | 34,083 |  |  |  | 17,900 |  |  |  | 78,381 |  |  |  | 48,650 |  |  |  | 28,983 |  |  |  | 438 |  |  |  | — |  |  |  | 231,469 |
Commercial real estate - Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | June 30, 2025 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
(In Thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving loans amortized cost basis |  |  | Revolving loans converted to term |  |  | Total |
Commercial real estate - Owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 50,627 |  |  |  | 52,919 |  |  |  | 45,359 |  |  |  | 95,756 |  |  |  | 80,810 |  |  |  | 136,859 |  |  |  | 16,185 |  |  |  | — |  |  |  | 478,515 |
Special mention |  |  | — |  |  |  | 671 |  |  |  | 3,049 |  |  |  | 359 |  |  |  | 1,934 |  |  |  | 5,275 |  |  |  | 280 |  |  |  | — |  |  |  | 11,568 |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,220 |  |  |  | 587 |  |  |  | 2,582 |  |  |  | 43 |  |  |  | — |  |  |  | 12,432 |
Total Commercial real estate - Owner occupied |  |  | 50,627 |  |  |  | 53,590 |  |  |  | 48,408 |  |  |  | 105,335 |  |  |  | 83,331 |  |  |  | 144,716 |  |  |  | 16,508 |  |  |  | — |  |  |  | 502,515 |
Commercial real estate - Owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate - Non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 79,961 |  |  |  | 78,479 |  |  |  | 55,176 |  |  |  | 182,377 |  |  |  | 108,413 |  |  |  | 154,634 |  |  |  | 11,205 |  |  |  | — |  |  |  | 670,245 |
Special mention |  |  | 3,004 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,355 |  |  |  | 3,311 |  |  |  | — |  |  |  | — |  |  |  | 7,670 |
Substandard or lower |  |  | — |  |  |  | 700 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,906 |  |  |  | — |  |  |  | — |  |  |  | 3,606 |
Total Commercial real estate - Non-owner occupied |  |  | 82,965 |  |  |  | 79,179 |  |  |  | 55,176 |  |  |  | 182,377 |  |  |  | 109,768 |  |  |  | 160,851 |  |  |  | 11,205 |  |  |  | — |  |  |  | 681,521 |
Commercial real estate - Non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,018 |  |  |  | 35 |  |  |  | — |  |  |  | — |  |  |  | 2,053 |
Municipal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | — |  |  |  | 63 |  |  |  | 306 |  |  |  | — |  |  |  | 315 |  |  |  | 2,147 |  |  |  | 86 |  |  |  | — |  |  |  | 2,917 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Municipal |  |  | — |  |  |  | 63 |  |  |  | 306 |  |  |  | — |  |  |  | 315 |  |  |  | 2,147 |  |  |  | 86 |  |  |  | — |  |  |  | 2,917 |
Municipal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 193,292 |  |  | $ | 257,179 |  |  | $ | 175,620 |  |  | $ | 402,427 |  |  | $ | 280,082 |  |  | $ | 364,201 |  |  | $ | 153,627 |  |  | $ | 4,349 |  |  | $ | 1,830,777 |
Special mention |  |  | 3,004 |  |  |  | 671 |  |  |  | 3,294 |  |  |  | 4,736 |  |  |  | 3,355 |  |  |  | 8,763 |  |  |  | 1,839 |  |  |  | — |  |  |  | 25,662 |
Substandard or lower |  |  | — |  |  |  | 700 |  |  |  | 520 |  |  |  | 9,603 |  |  |  | 587 |  |  |  | 6,576 |  |  |  | 6,846 |  |  |  | — |  |  |  | 24,832 |
Total |  | $ | 196,296 |  |  | $ | 258,550 |  |  | $ | 179,434 |  |  | $ | 416,766 |  |  | $ | 284,024 |  |  | $ | 379,540 |  |  | $ | 162,312 |  |  | $ | 4,349 |  |  | $ | 1,881,271 |
The following tables present the classes of the loan portfolio summarized by the internal risk rating system as of December 31, 2024.
|  | December 31, 2024 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
(In Thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving loans amortized cost basis |  |  | Revolving loans converted to term |  |  | Total |
Agriculture and farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 11,357 |  |  | $ | 1,040 |  |  | $ | 13,682 |  |  | $ | 8,761 |  |  | $ | 4,780 |  |  | $ | 21,105 |  |  | $ | 5,320 |  |  | $ | — |  |  | $ | 66,045 |
Special mention |  |  | — |  |  |  | 10 |  |  |  | — |  |  |  | 51 |  |  |  | — |  |  |  | 1,387 |  |  |  | 248 |  |  |  | — |  |  |  | 1,696 |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Agriculture and farmland |  | $ | 11,357 |  |  | $ | 1,050 |  |  | $ | 13,682 |  |  | $ | 8,812 |  |  | $ | 4,780 |  |  | $ | 22,492 |  |  | $ | 5,568 |  |  | $ | — |  |  | $ | 67,741 |
Agriculture and farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 38,681 |  |  |  | 54,929 |  |  |  | 17,645 |  |  |  | 18,952 |  |  |  | 1,226 |  |  |  | 8,567 |  |  |  | 12,422 |  |  |  | — |  |  |  | 152,422 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard or lower |  |  | — |  |  |  | 197 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 197 |
Total Construction |  |  | 38,681 |  |  |  | 55,126 |  |  |  | 17,645 |  |  |  | 18,952 |  |  |  | 1,226 |  |  |  | 8,567 |  |  |  | 12,422 |  |  |  | — |  |  |  | 152,619 |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 36,194 |  |  |  | 23,645 |  |  |  | 18,632 |  |  |  | 18,880 |  |  |  | 10,145 |  |  |  | 8,154 |  |  |  | 115,655 |  |  |  | — |  |  |  | 231,305 |
Special mention |  |  | 301 |  |  |  | 153 |  |  |  | 4,606 |  |  |  | 88 |  |  |  | — |  |  |  | 363 |  |  |  | 7,023 |  |  |  | — |  |  |  | 12,534 |
Substandard or lower |  |  | 74 |  |  |  | 51 |  |  |  | 384 |  |  |  | 47 |  |  |  | — |  |  |  | 299 |  |  |  | 1,139 |  |  |  | — |  |  |  | 1,994 |
Total Commercial & industrial |  |  | 36,569 |  |  |  | 23,849 |  |  |  | 23,622 |  |  |  | 19,015 |  |  |  | 10,145 |  |  |  | 8,816 |  |  |  | 123,817 |  |  |  | — |  |  |  | 245,833 |
Commercial & industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 20 |  |  |  | 7 |  |  |  | 125 |  |  |  | — |  |  |  | 152 |
Commercial real estate - Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 34,006 |  |  |  | 11,064 |  |  |  | 84,497 |  |  |  | 49,859 |  |  |  | 19,451 |  |  |  | 11,232 |  |  |  | 685 |  |  |  | — |  |  |  | 210,794 |
Special mention |  |  | — |  |  |  | — |  |  |  | 984 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 984 |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Commercial real estate - Multifamily |  |  | 34,006 |  |  |  | 11,064 |  |  |  | 85,481 |  |  |  | 49,859 |  |  |  | 19,451 |  |  |  | 11,232 |  |  |  | 685 |  |  |  | — |  |  |  | 211,778 |
Commercial real estate - Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | December 31, 2024 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
(In Thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving loans amortized cost basis |  |  | Revolving loans converted to term |  |  | Total |
Commercial real estate - Owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 52,566 |  |  |  | 56,674 |  |  |  | 101,351 |  |  |  | 83,703 |  |  |  | 48,003 |  |  |  | 99,600 |  |  |  | 15,120 |  |  |  | — |  |  |  | 457,017 |
Special mention |  |  | — |  |  |  | — |  |  |  | 365 |  |  |  | 1,984 |  |  |  | 416 |  |  |  | 5,608 |  |  |  | 262 |  |  |  | — |  |  |  | 8,635 |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | 9,327 |  |  |  | — |  |  |  | — |  |  |  | 2,632 |  |  |  | 131 |  |  |  | — |  |  |  | 12,090 |
Total Commercial real estate - Owner occupied |  |  | 52,566 |  |  |  | 56,674 |  |  |  | 111,043 |  |  |  | 85,687 |  |  |  | 48,419 |  |  |  | 107,840 |  |  |  | 15,513 |  |  |  | — |  |  |  | 477,742 |
Commercial real estate - Owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 23 |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 29 |
Commercial real estate - Non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 78,928 |  |  |  | 60,584 |  |  |  | 187,113 |  |  |  | 111,191 |  |  |  | 48,512 |  |  |  | 120,340 |  |  |  | 8,535 |  |  |  | — |  |  |  | 615,203 |
Special mention |  |  | 744 |  |  |  | — |  |  |  | — |  |  |  | 1,536 |  |  |  | 3,352 |  |  |  | 3,073 |  |  |  | — |  |  |  | — |  |  |  | 8,705 |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,931 |  |  |  | — |  |  |  | 324 |  |  |  | 74 |  |  |  | — |  |  |  | 4,329 |
Total Commercial real estate - Non-owner occupied |  |  | 79,672 |  |  |  | 60,584 |  |  |  | 187,113 |  |  |  | 116,658 |  |  |  | 51,864 |  |  |  | 123,737 |  |  |  | 8,609 |  |  |  | — |  |  |  | 628,237 |
Commercial real estate - Non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 54 |  |  |  | — |  |  |  | — |  |  |  | 54 |
Municipal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 71 |  |  |  | 356 |  |  |  | — |  |  |  | 350 |  |  |  | 939 |  |  |  | 2,088 |  |  |  | 82 |  |  |  | — |  |  |  | 3,886 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard or lower |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Commercial real estate - Municipal |  |  | 71 |  |  |  | 356 |  |  |  | — |  |  |  | 350 |  |  |  | 939 |  |  |  | 2,088 |  |  |  | 82 |  |  |  | — |  |  |  | 3,886 |
Municipal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 251,803 |  |  | $ | 208,292 |  |  | $ | 422,920 |  |  | $ | 291,696 |  |  | $ | 133,056 |  |  | $ | 271,086 |  |  | $ | 157,819 |  |  | $ | — |  |  | $ | 1,736,672 |
Special mention |  |  | 1,045 |  |  |  | 163 |  |  |  | 5,955 |  |  |  | 3,659 |  |  |  | 3,768 |  |  |  | 10,431 |  |  |  | 7,533 |  |  |  | — |  |  |  | 32,554 |
Substandard or lower |  |  | 74 |  |  |  | 248 |  |  |  | 9,711 |  |  |  | 3,978 |  |  |  | — |  |  |  | 3,255 |  |  |  | 1,344 |  |  |  | — |  |  |  | 18,610 |
Total |  | $ | 252,922 |  |  | $ | 208,703 |  |  | $ | 438,586 |  |  | $ | 299,333 |  |  | $ | 136,824 |  |  | $ | 284,772 |  |  | $ | 166,696 |  |  | $ | — |  |  | $ | 1,787,836 |
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company monitors small balance, homogeneous loans, such as home equity, residential mortgage, and consumer loans based on delinquency status rather than the assignment of loan specific risk ratings. The Company will evaluate credit quality based on the aging status of the loan. The following tables present the amortized cost of these loans based on payment activity, by origination year, as of June 30, 2025 and December 31, 2024.
|  | June 30, 2025 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
(In Thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Revolving loans amortized cost basis |  |  | Revolving loans converted to term |  |  | Total |
Residential real estate - First liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 18,970 |  |  | $ | 28,833 |  |  | $ | 46,650 |  |  | $ | 81,917 |  |  | $ | 76,831 |  |  | $ | 105,936 |  |  | $ | 14,535 |  |  | $ | — |  |  | $ | 373,672 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 315 |  |  |  | 1,892 |  |  |  | — |  |  |  | — |  |  |  | 2,207 |
Total Residential real estate - First liens |  | $ | 18,970 |  |  | $ | 28,833 |  |  | $ | 46,650 |  |  | $ | 81,917 |  |  | $ | 77,146 |  |  | $ | 107,828 |  |  | $ | 14,535 |  |  | $ | — |  |  | $ | 375,879 |
Residential real estate - First liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | 3 |
Residential real estate - Second liens and lines of credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  | 236 |  |  |  | 2,699 |  |  |  | 1,500 |  |  |  | 588 |  |  |  | 316 |  |  |  | 1,739 |  |  |  | 73,581 |  |  |  | 75 |  |  |  | 80,734 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 210 |  |  |  | 250 |  |  |  | — |  |  |  | 460 |
Total Residential real estate - Second liens and lines of credit |  |  | 236 |  |  |  | 2,699 |  |  |  | 1,500 |  |  |  | 588 |  |  |  | 316 |  |  |  | 1,949 |  |  |  | 73,831 |  |  |  | 75 |  |  |  | 81,194 |
Residential real estate - Second liens and lines of credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  | 4,167 |  |  |  | 1,791 |  |  |  | 3,249 |  |  |  | 2,352 |  |  |  | 80 |  |  |  | 97 |  |  |  | 5,788 |  |  |  | 1 |  |  |  | 17,525 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Consumer and other |  |  | 4,167 |  |  |  | 1,791 |  |  |  | 3,249 |  |  |  | 2,352 |  |  |  | 80 |  |  |  | 97 |  |  |  | 5,788 |  |  |  | 1 |  |  |  | 17,525 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | 10 |  |  |  | 7 |  |  |  | 5 |  |  |  | — |  |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  | 29 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 23,373 |  |  | $ | 33,323 |  |  | $ | 51,399 |  |  | $ | 84,857 |  |  | $ | 77,227 |  |  | $ | 107,772 |  |  | $ | 93,904 |  |  | $ | 76 |  |  | $ | 471,931 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 315 |  |  |  | 2,102 |  |  |  | 250 |  |  |  | — |  |  |  | 2,667 |
Total |  | $ | 23,373 |  |  | $ | 33,323 |  |  | $ | 51,399 |  |  | $ | 84,857 |  |  | $ | 77,542 |  |  | $ | 109,874 |  |  | $ | 94,154 |  |  | $ | 76 |  |  | $ | 474,598 |
|  | December 31, 2024 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
(In Thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Revolving loans amortized cost basis |  |  | Revolving loans converted to term |  |  | Total |
Residential real estate - First liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 28,532 |  |  | $ | 48,601 |  |  | $ | 86,197 |  |  | $ | 82,086 |  |  | $ | 35,962 |  |  | $ | 78,244 |  |  | $ | 11,583 |  |  | $ | — |  |  | $ | 371,205 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 219 |  |  |  | 29 |  |  |  | 2,016 |  |  |  | — |  |  |  | — |  |  |  | 2,264 |
Total Residential real estate - First liens |  | $ | 28,532 |  |  | $ | 48,601 |  |  | $ | 86,197 |  |  | $ | 82,305 |  |  | $ | 35,991 |  |  | $ | 80,260 |  |  | $ | 11,583 |  |  | $ | — |  |  | $ | 373,469 |
Residential real estate - First liens |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 4 |
Residential real estate - Second liens and lines of credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  | 2,643 |  |  |  | 940 |  |  |  | 985 |  |  |  | 349 |  |  |  | 61 |  |  |  | 1,666 |  |  |  | 68,937 |  |  |  | 650 |  |  |  | 76,231 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 294 |  |  |  | 188 |  |  |  | — |  |  |  | 482 |
Total Residential real estate - Second liens and lines of credit |  |  | 2,643 |  |  |  | 940 |  |  |  | 985 |  |  |  | 349 |  |  |  | 61 |  |  |  | 1,960 |  |  |  | 69,125 |  |  |  | 650 |  |  |  | 76,713 |
Residential real estate - Second liens and lines of credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9 |  |  |  | — |  |  |  | — |  |  |  | 9 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  |  | 2,610 |  |  |  | 4,433 |  |  |  | 1,863 |  |  |  | 113 |  |  |  | 52 |  |  |  | 67 |  |  |  | 7,900 |  |  |  | — |  |  |  | 17,038 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 48 |  |  |  | — |  |  |  | — |  |  |  | 48 |
Total Consumer and other |  |  | 2,610 |  |  |  | 4,433 |  |  |  | 1,863 |  |  |  | 113 |  |  |  | 52 |  |  |  | 115 |  |  |  | 7,900 |  |  |  | — |  |  |  | 17,086 |
Consumer and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period gross charge-offs |  |  | — |  |  |  | 6 |  |  |  | 4 |  |  |  | 6 |  |  |  | 1 |  |  |  | 18 |  |  |  | 150 |  |  |  | — |  |  |  | 185 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 33,785 |  |  | $ | 53,974 |  |  | $ | 89,045 |  |  | $ | 82,548 |  |  | $ | 36,075 |  |  | $ | 79,977 |  |  | $ | 88,420 |  |  | $ | 650 |  |  | $ | 464,474 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 219 |  |  |  | 29 |  |  |  | 2,358 |  |  |  | 188 |  |  |  | — |  |  |  | 2,794 |
Total |  | $ | 33,785 |  |  | $ | 53,974 |  |  | $ | 89,045 |  |  | $ | 82,767 |  |  | $ | 36,104 |  |  | $ | 82,335 |  |  | $ | 88,608 |  |  | $ | 650 |  |  | $ | 467,268 |
Modifications to Borrowers Experiencing Financial Difficulty The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses. The Company may also provide multiple types of modifications on an individual loan. For the three months ended June 30, 2025, the Company provided an interest rate reduction, payment delay, and term extension to an Owner Occupied Commercial Real Estate borrower experiencing financial difficulty. At June 30, 2025, the amortized cost basis of the loan was $633 and the borrower is performing in accordance with the modified terms. For the six months ended June 30, 2025, the Company provided a payment delay to a Non Owner Occupied Commercial Real Estate borrower experiencing financial difficulty. At June 30, 2025, the amortized cost basis of the loan was $3,004 and the borrower is performing in accordance with the modified terms. During the three and six months ended June 30, 2024, the Company provided a payment delay to a Non Owner Occupied Commercial Real Estate borrower experiencing financial difficulty. During the second quarter of 2025, this loan was sold to an outside investor. The Company has no t committed to lend any additional funds at both June 30, 2025 and December 31, 2024 to the borrowers noted above. Sale of Purchase Credit Deteriorated Loan During the second quarter, the Company sold a Non Owner Occupied Commercial Real Estate loan that had been identified as purchase credit deteriorated and at December 31, 2024, required an individual reserve of $2,311 within the allowance for credit losses. The resulting charge to the allowance for credit losses during the second quarter due to the sale of this non-accrual loan was $2,018, and thus no individual reserve was required at June 30, 2025.

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -Publisher FASB -URI https://asc.fasb.org/310/tableOfContent + Details
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