Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2025

Amortized Cost and Unpaid Principal Balance of Loans by Loan Segment

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:


	March 31, 2025			December 31, 2024
(In Thousands)	Amortized Cost	Unpaid Principal	Difference	Amortized Cost	Unpaid Principal	Difference
Commercial & industrial loans	$491,945	$494,286	($2,341)	$437,922	$440,163	($2,241)
Commercial real estate:
Owner occupied properties	428,443	430,442	(1,999)	418,092	420,060	(1,968)
Non-owner occupied and multifamily properties	686,097	690,277	(4,180)	615,662	619,431	(3,769)
Residential real estate:
1-4 family residential properties secured by first liens	188,086	188,219	(133)	270,966	270,535	431
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	54,225	53,836	389	49,160	48,857	303
1-4 family residential construction loans	33,786	34,017	(231)	39,516	39,789	(273)
Other construction, land development and raw land loans	155,158	156,211	(1,053)	212,561	214,068	(1,507)
Obligations of states and political subdivisions in the US	30,941	30,939	2	29,471	29,468	3
Agricultural production, including commercial fishing	46,296	46,513	(217)	45,840	46,069	(229)
Consumer loans	7,508	7,424	84	7,638	7,562	76
Other loans	1,845	1,855	(10)	2,435	2,448	(13)
Total	2,124,330	2,134,019	(9,689)	2,129,263	2,138,450	(9,187)
Allowance for credit losses	(20,922)			(22,020)
Net loans	$2,103,408	$2,134,019	($9,689)	$2,107,243	$2,138,450	($9,187)

Allowance for Credit Losses

The table below presents activity in the ACL related to loans held for investment for the periods indicated.


Three Months Ended March 31,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2025
Commercial & industrial loans	$5,800	$1,550	($37)	$74	$7,387
Commercial real estate:
Owner occupied properties	2,944	(502)	—	—	2,442
Non-owner occupied and multifamily properties	3,967	(11)	—	—	3,956
Residential real estate:
1-4 family residential properties secured by first liens	4,364	(308)	—	—	4,056
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	775	(13)	—	7	769
1-4 family residential construction loans	230	(11)	—	—	219
Other construction, land development and raw land loans	3,589	(1,883)	—	—	1,706
Obligations of states and political subdivisions in the US	106	17	—	—	123
Agricultural production, including commercial fishing	169	16	—	2	187
Consumer loans	71	12	(13)	1	71
Other loans	5	1	—	—	6
Total	$22,020	($1,132)	($50)	$84	$20,922
2024
Commercial & industrial loans	$3,438	$890	($149)	$361	$5,800
Commercial real estate:
Owner occupied properties	2,867	77	—	—	2,944
Non-owner occupied and multifamily properties	3,294	673	—	—	3,967
Residential real estate:
1-4 family residential properties secured by first liens	3,470	894	—	—	4,364
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	551	202	—	22	775
1-4 family residential construction loans	191	39	—	—	230
Other construction, land development and raw land loans	3,127	462	—	—	3,589
Obligations of states and political subdivisions in the US	80	26	—	—	106
Agricultural production, including commercial fishing	168	20	(25)	6	169
Consumer loans	81	(9)	(15)	14	71
Other loans	3	2	—	—	5
Total	$17,270	$3,276	($189)	$403	$22,020

Schedule of Financing Receivables For Gross Charge-Offs By Grade And Year Of Loan Origination

The following table shows gross charge-offs by year of loan origination for the periods indicated:


Three Months Ended March 31,

(In Thousands)	2025	2024	2023	2022	2021	Prior	Total
2025
Commercial & industrial loans	$—	$—	$—	$—	$37	$—	$37










Consumer loans	—	—	3	—	—	10	13

Total	$—	$—	$3	$—	$37	$10	$50

The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.


March 31, 2025	2025	2024	2023	2022	2021	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$40,464	$108,928	$72,264	$113,643	$36,159	$75,313	$446,771
Classified	792	119	6,120	16,724	14,160	7,259	45,174
Total commercial & industrial loans	$41,256	$109,047	$78,384	$130,367	$50,319	$82,572	$491,945

Commercial real estate:
Owner occupied properties
Pass	$9,058	$79,991	$48,041	$71,034	$59,637	$140,247	$408,008


Classified	—	—	—	3,743	—	16,692	20,435
Total commercial real estate owner occupied properties	$9,058	$79,991	$48,041	$74,777	$59,637	$156,939	$428,443

Non-owner occupied and multifamily properties
Pass	$15,628	$121,670	$74,433	$141,104	$88,876	$233,296	$675,007
Classified	—	—	—	1,162	29	9,899	11,090
Total commercial real estate non-owner occupied and multifamily properties	$15,628	$121,670	$74,433	$142,266	$88,905	$243,195	$686,097

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$12,212	$108,703	$10,497	$41,789	$3,245	$10,752	$187,198
Classified	—	—	521	315	—	52	888
Total residential real estate 1-4 family residential properties secured by first liens	$12,212	$108,703	$11,018	$42,104	$3,245	$10,804	$188,086

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$4,815	$20,177	$12,985	$5,166	$2,669	$7,770	$53,582
Classified	—	—	373	—	—	270	643
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$4,815	$20,177	$13,358	$5,166	$2,669	$8,040	$54,225

1-4 family residential construction loans
Pass	$5,123	$18,661	$413	$2,353	$—	$7,236	$33,786
Classified	—	—	—	—	—	—	—
Total residential real estate 1-4 family residential construction loans	$5,123	$18,661	$413	$2,353	$—	$7,236	$33,786

Other construction, land development and raw land loans
Pass	$3,652	$58,947	$58,857	$14,180	$9,151	$8,794	$153,581
Classified	—	—	—	—	—	1,577	1,577
Total other construction, land development and raw land loans	$3,652	$58,947	$58,857	$14,180	$9,151	$10,371	$155,158

Obligations of states and political subdivisions in the US
Pass	$—	$1,699	$—	$29,241	$—	$1	$30,941
Classified	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$1,699	$—	$29,241	$—	$1	$30,941

Agricultural production, including commercial fishing
Pass	$150	$8,117	$9,258	$8,323	$15,850	$4,461	$46,159
Classified	—	—	—	—	137	—	137
Total agricultural production, including commercial fishing	$150	$8,117	$9,258	$8,323	$15,987	$4,461	$46,296

Consumer loans
Pass	$833	$2,690	$2,103	$672	$63	$1,097	$7,458
Classified	—	—	45	5	—	—	50
Total consumer loans	$833	$2,690	$2,148	$677	$63	$1,097	$7,508

Other loans
Pass	$—	$—	$192	$108	$282	$1,263	$1,845
Classified	—	—	—	—	—	—	—
Total other loans	$—	$—	$192	$108	$282	$1,263	$1,845

Total loans
Pass	$91,935	$529,583	$289,043	$427,613	$215,932	$490,230	$2,044,336
Classified	792	119	7,059	21,949	14,326	35,749	79,994
Total loans	$92,727	$529,702	$296,102	$449,562	$230,258	$525,979	$2,124,330

Total pass loans	$91,935	$529,583	$289,043	$427,613	$215,932	$490,230	$2,044,336
Government guarantees	(7,768)	(39,014)	(17,408)	(5,227)	(13,158)	(18,657)	(101,232)
Total pass loans, net of government guarantees	$84,167	$490,569	$271,635	$422,386	$202,774	$471,573	$1,943,104


Total classified loans	$792	$119	$7,059	$21,949	$14,326	$35,749	$79,994
Government guarantees	—	—	(1,604)	(17,134)	(12,752)	(12,954)	(44,444)
Total classified loans, net government guarantees	$792	$119	$5,455	$4,815	$1,574	$22,795	$35,550


December 31, 2024	2024	2023	2022	2021	2020	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$112,361	$70,871	$120,377	$37,628	$10,581	$40,288	$392,106
Classified	201	3,386	16,888	14,973	5,759	4,609	45,816
Total commercial & industrial loans	$112,562	$74,257	$137,265	$52,601	$16,340	$44,897	$437,922

Commercial real estate:
Owner occupied properties
Pass	$68,074	$48,655	$74,611	$64,234	$74,662	$74,987	$405,223
Classified	—	—	492	—	348	12,029	12,869
Total commercial real estate owner occupied properties	$68,074	$48,655	$75,103	$64,234	$75,010	$87,016	$418,092

Non-owner occupied and multifamily properties
Pass	$114,879	$70,806	$104,924	$73,008	$65,592	$175,349	$604,558
Classified	—	—	1,166	30	—	9,908	11,104
Total commercial real estate non-owner occupied and multifamily properties	$114,879	$70,806	$106,090	$73,038	$65,592	$185,257	$615,662

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$103,919	$108,642	$43,562	$3,279	$4,228	$6,978	$270,608
Classified	—	205	—	—	—	153	358
Total residential real estate 1-4 family residential properties secured by first liens	$103,919	$108,847	$43,562	$3,279	$4,228	$7,131	$270,966

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$18,946	$13,553	$5,116	$2,695	$2,097	$6,083	$48,490
Classified	—	372	—	—	—	298	670
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$18,946	$13,925	$5,116	$2,695	$2,097	$6,381	$49,160

1-4 family residential construction loans
Pass	$25,458	$4,118	$2,353	$—	$—	$7,587	$39,516
Classified	—	—	—	—	—	—	—
Total residential real estate 1-4 family residential construction loans	$25,458	$4,118	$2,353	$—	$—	$7,587	$39,516

Other construction, land development and raw land loans
Pass	$63,430	$60,693	$51,809	$25,836	$1,236	$7,942	$210,946
Classified	—	—	—	—	—	1,615	1,615
Total other construction, land development and raw land loans	$63,430	$60,693	$51,809	$25,836	$1,236	$9,557	$212,561

Obligations of states and political subdivisions in the US
Pass	$—	$—	$29,471	$—	$—	$—	$29,471
Classified	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$—	$29,471	$—	$—	$—	$29,471

Agricultural production, including commercial fishing
Pass	$8,097	$8,776	$8,380	$15,847	$3,109	$1,631	$45,840
Classified	—	—	—	—	—	—	—
Total agricultural production, including commercial fishing	$8,097	$8,776	$8,380	$15,847	$3,109	$1,631	$45,840

Consumer loans
Pass	$3,346	$2,377	$717	$75	$252	$820	$7,587


Classified	—	45	5	—	—	1	51
Total consumer loans	$3,346	$2,422	$722	$75	$252	$821	$7,638

Other loans
Pass	$—	$345	$122	$285	$1,683	$—	$2,435
Classified	—	—	—	—	—	—	—
Total other loans	$—	$345	$122	$285	$1,683	$—	$2,435

Total loans
Pass	$518,510	$388,836	$441,442	$222,887	$163,440	$321,665	$2,056,780
Classified	201	4,008	18,551	15,003	6,107	28,613	72,483
Total loans	$518,711	$392,844	$459,993	$237,890	$169,547	$350,278	$2,129,263

Total pass loans	$518,510	$388,836	$441,442	$222,887	$163,440	$321,665	$2,056,780
Government guarantees	(35,244)	(12,421)	(7,727)	(13,785)	(1,591)	(17,276)	(88,044)
Total pass loans, net of government guarantees	$483,266	$376,415	$433,715	$209,102	$161,849	$304,389	$1,968,736

Total classified loans	$201	$4,008	$18,551	$15,003	$6,107	$28,613	$72,483
Government guarantees	—	(1,640)	(14,816)	(13,476)	(5,183)	(7,963)	(43,078)
Total classified loans, net government guarantees	$201	$2,368	$3,735	$1,527	$924	$20,650	$29,405

Aging of Contractually Past Due Loans

The following tables present an aging of contractually past due loans as of the periods presented:


(In Thousands)	30-59 Days Past Due	60-89 Days Past Due	Greater Than 90 Days Past Due	Total Past Due	Current	Total	Greater Than 90 Days Past Due Still Accruing
March 31, 2025
Commercial & industrial loans	$—	$80	$1,499	$1,579	$490,366	$491,945	$—
Commercial real estate:
Owner occupied properties	—	—	217	217	428,226	428,443	—
Non-owner occupied and multifamily properties	—	—	—	—	686,097	686,097	—
Residential real estate:
1-4 family residential properties secured by first liens	991	—	—	991	187,095	188,086	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	—	460	460	53,765	54,225	—
1-4 family residential construction loans	—	—	—	—	33,786	33,786	—
Other construction, land development and raw land loans	—	—	1,490	1,490	153,668	155,158	—
Obligations of states and political subdivisions in the US	—	—	—	—	30,941	30,941	—
Agricultural production, including commercial fishing	—	—	—	—	46,296	46,296	—
Consumer loans	—	—	—	—	7,508	7,508	—
Other loans	—	—	—	—	1,845	1,845	—
Total	$991	$80	$3,666	$4,737	$2,119,593	$2,124,330	$—
December 31, 2024
Commercial & industrial loans	$718	$—	$1,558	$2,276	$435,646	$437,922	$—
Commercial real estate:
Owner occupied properties	—	492	224	716	417,376	418,092	—
Non-owner occupied and multifamily properties	—	—	—	—	615,662	615,662	—
Residential real estate:
1-4 family residential properties secured by first liens	712	323	205	1,240	269,726	270,966	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	—	466	466	48,694	49,160	17
1-4 family residential construction loans	—	—	94	94	39,422	39,516	—
Other construction, land development and raw land loans	—	—	1,432	1,432	211,129	212,561	—
Obligations of states and political subdivisions in the US	—	—	—	—	29,471	29,471	—
Agricultural production, including commercial fishing	—	—	—	—	45,840	45,840	—
Consumer loans	—	—	—	—	7,638	7,638	—
Other loans	—	—	—	—	2,435	2,435	—
Total	$1,430	$815	$3,979	$6,224	$2,123,039	$2,129,263	$17

Loans on Nonaccrual Status

The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.


	March 31, 2025		December 31, 2024
(In Thousands)	Nonaccrual	Nonaccrual With No ACL	Nonaccrual	Nonaccrual With No ACL

Commercial & industrial loans	$5,600	$1,966	$4,983	$4,760
Commercial real estate:
Owner occupied properties	217	217	224	224

Residential real estate:
1-4 family residential properties secured by first liens	221	—	233	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	540	460	550	466
1-4 family residential construction loans	—	—	94	94
Other construction, land development and raw land loans	1,490	1,490	1,432	1,432




Total nonaccrual loans	8,068	4,133	7,516	6,976
Government guarantees on nonaccrual loans	(80)	(80)	—	—
Net nonaccrual loans	$7,988	$4,053	$7,516	$6,976

Financing Receivable, Modified

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:


	Three Months Ended March 31, 2025
	Payment Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	$3,252	$3,252	0.76	%










Total	$—	$3,252	$3,252	0.15	%


	Three Months Ended March 31, 2024
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$5,396	$265	$5,661	1.43	%












Total	$5,396	$842	$5,661	0.31	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:


	Three Months Ended March 31, 2025
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)

Commercial real estate:
Owner occupied properties	$—	—	%	33


	Three Months Ended March 31, 2024
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	8	%	7

The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty as of the dates indicated:


	March 31, 2025	December 31, 2024
(In Thousands)
Commercial & industrial loans	$4,318	$5,075
Commercial real estate:
Owner occupied properties	3,468	224

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	460	466
1-4 family residential construction loans	—	94
Other construction, land development and raw land loans	1,490	1,432




Total	$9,736	$7,291

The following table presents the amortized cost basis of loans that had a payment default during the period indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:

Three Months Ended March 31, 2025

Term modification

(In Thousands)

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens

$—

1-4 family residential construction loans

—

Other construction, land development and raw land loans

—

Total

$—

Three Months Ended March 31, 2024