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Allowance for Credit Losses
6 Months Ended
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 not 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.