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Loans
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans Loans
The table below identifies the Company’s loan portfolio segments and classes.
Portfolio SegmentClass of Financing Receivable
CommercialOwner occupied real estate
Non-owner occupied real estate
Residential spec homes
Development & spec land
Commercial and industrial
Residential real estateResidential mortgage
Residential construction
ConsumerDirect installment
Indirect installment
Home equity
Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity’s method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan.
The following table presents outstanding loans held for investment by portfolio class, as of March 31, 2026 and December 31, 2025:
March 31,
2026		December 31,
2025
Commercial
Owner occupied real estate$718,301 $699,327 
Non–owner occupied real estate1,669,915 1,669,260 
Residential spec homes17,235 17,741 
Development & spec land38,131 35,535 
Commercial and industrial1,023,068 1,010,545 
Total commercial3,466,650 3,432,408 
Real estate
Residential mortgage719,235 741,477 
Residential construction30,873 30,950 
Total real estate750,108 772,427 
Consumer
Direct installment72,640 77,174 
Indirect installment16,769 19,672 
Home equity572,382 574,861 
Total consumer661,791 671,707 
Total loans4,878,549 4,876,542 
Allowance for credit losses(51,297)(51,299)
Net loans$4,827,252 $4,825,243 
Total loans include net unearned discounts and deferred loan costs of $6.5 million at March 31, 2026 and $6.8 million at December 31, 2025, respectively.

The risk characteristics of each loan portfolio segment are as follows:
Commercial
Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.
Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy or fluctuations in interest rates. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner occupied commercial real estate loans versus non-owner occupied loans.
Real Estate and Consumer
With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.



Non–performing Loans

The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at March 31, 2026:

March 31, 2026
Total Non-accrualLoans Past Due Over 90 Days Still AccruingNon-accruing Loans with no Allowance for Credit Losses
Commercial
Owner occupied real estate$5,713 $— $5,713 
Non–owner occupied real estate2,932 — 2,932 
Residential spec homes— — — 
Development & spec land446 — 446 
Commercial and industrial6,670 — 5,695 
Total commercial15,761 — 14,786 
Real estate
Residential mortgage10,607 55 679 
Residential construction— — — 
Total real estate10,607 55 679 
Consumer
Direct installment262 185 — 
Indirect installment866 85 — 
Home equity7,288 1,886 314 
Total consumer8,416 2,156 314 
Total$34,784 $2,211 $15,779 
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loan at December 31, 2025:

December 31, 2025
Total Non-accrualLoans Past Due Over 90 Days Still AccruingNon-accruing Loans with no Allowance for Credit Losses
Commercial
Owner occupied real estate$5,396 $— $1,599 
Non–owner occupied real estate3,026 — 1,074 
Residential spec homes— — — 
Development & spec land496 — 496 
Commercial and industrial5,631 — 3,951 
Total commercial14,549 — 7,120 
Real estate
Residential mortgage10,087 90 929 
Residential construction— — — 
Total real estate10,087 90 929 
Consumer
Direct installment342 373 — 
Indirect installment1,058 170 — 
Home equity6,421 1,856 — 
Total consumer7,821 2,399 — 
Total$32,457 $2,489 $8,049 
There was no interest income recognized on non-accrual loans during the three months periods ended March 31, 2026 and 2025, respectively, while the loans were in non-accrual status.
The amount of accrued interest receivable written off by the Company by reversing interest income was not material during the three months periods ended March 31, 2026 and 2025, respectively.
The following table presents the payment status by class of loan at March 31, 2026:
March 31, 2026
Current30-59 Days
Past Due		60-89 Days
Past Due		90 Days or
Greater
Past Due		Total Past
Due		Total
Loans
Commercial
Owner occupied real estate$713,180 $1,238 $— $3,883 $5,121 $718,301 
Non–owner occupied real estate1,666,555 2,782 578 — 3,360 1,669,915 
Residential spec homes17,235 — — — — 17,235 
Development & spec land38,131 — — — — 38,131 
Commercial and industrial1,013,688 2,557 1,755 5,068 9,380 1,023,068 
Total commercial3,448,789 6,577 2,333 8,951 17,861 3,466,650 
Real estate
Residential mortgage709,714 3,016 1,836 4,669 9,521 719,235 
Residential construction30,873 — — — — 30,873 
Total real estate740,587 3,016 1,836 4,669 9,521 750,108 
Consumer
Direct installment70,780 1,231 292 337 1,860 72,640 
Indirect installment14,479 1,558 370 362 2,290 16,769 
Home equity558,471 5,630 1,984 6,297 13,911 572,382 
Total consumer643,730 8,419 2,646 6,996 18,061 661,791 
Total$4,833,106 $18,012 $6,815 $20,616 $45,443 $4,878,549 
The following table presents the payment status by class of loan at December 31, 2025:
December 31, 2025
Current30-59 Days
Past Due		60-89 Days
Past Due		90 Days or
Greater
Past Due		Total Past
Due		Total
Loans
Commercial
Owner occupied real estate$694,040 $2,671 $384 $2,232 $5,287 $699,327 
Non–owner occupied real estate1,668,372 490 398 — 888 1,669,260 
Residential spec homes17,741 — — — — 17,741 
Development & spec land35,039 — 496 — 496 35,535 
Commercial and industrial1,002,074 4,606 1,310 2,555 8,471 1,010,545 
Total commercial3,417,266 7,767 2,588 4,787 15,142 3,432,408 
Real estate
Residential mortgage730,784 4 3,221 7,468 10,693 741,477 
Residential construction28,916 — 2,034 — 2,034 30,950 
Total real estate759,700 4 5,255 7,468 12,727 772,427 
Consumer
Direct installment73,671 2,638 343 522 3,503 77,174 
Indirect installment16,390 2,203 478 601 3,282 19,672 
Home equity560,895 5,991 2,321 5,654 13,966 574,861 
Total consumer650,956 10,832 3,142 6,777 20,751 671,707 
Total$4,827,922 $18,603 $10,985 $19,032 $48,620 $4,876,542 
The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.
Modified Loans
The following tables detail the amortized cost at March 31, 2026 of loans that were modified to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and the amortized cost at March 31, 2025, of loans that were modified to borrowers experiencing financial difficulty during the three months periods ended March 31, 2025:
Three Months Ended March 31, 2026
Term ExtensionInterest Rate Reduction Other-Than-Insignificant Payment DelayTerm Extension and Interest Rate ReductionTotal % of Loans Held for Investment
Commercial
Owner occupied real estate$— $— $4,601 $— $4,601 0.09 %
Non-owner occupied real estate330 — — — 330 0.01 %
Development spec & land446 — — — 446 0.01 %
Commercial and industrial648 — — — 648 0.01 %
Total $1,424 $— $4,601 $— $6,025 0.12 %
Three Months Ended March 31, 2025
Term ExtensionInterest Rate ReductionOther-Than-Insignificant Payment DelayTerm Extension and Interest Rate ReductionTotal% of Loans Held for Investment
Commercial
Owner occupied real estate$— $— $653 $— $653 0.01 %
Non-owner occupied real estate433 — — — 433 0.01 %
Development spec & land537 — — — 537 0.01 %
Commercial and industrial363 — 752 — 1,115 0.03 %
Total$1,333 $— $1,405 $— $2,738 0.06 %
The following tables summarize the financial impacts of loan modifications and payment deferrals, as applicable, during the three months periods ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026
Weighted Average Term Extension (In Months)Weighted average interest rate reduction (In Percentage Terms)Weighted Average Payment Delay (In Months)Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial
Owner occupied real estate0— %200
Non-owner occupied real estate6— 00
Development spec & land6— 00
Commercial and industrial11— 00
Three Months Ended March 31, 2025
Weighted Average Term Extension (In Months)Weighted average interest rate reduction (In Percentage Terms)Weighted Average Payment Delay (In Months)Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial
Owner occupied real estate0— %60
Non-owner occupied real estate14— 00
Development spec & land18— 00
Commercial and industrial11— 60
The financial impacts of the modifications did not significantly impact our determination of the allowance for credit losses during the periods presented above.


The following table presents the amortized cost basis at March 31, 2026 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:

March 31, 2026
Current30-89 Days Past Due90 Days Past DueTotal
Commercial
Owner occupied real estate$5,129 $— $2,186 $7,315 
Non-owner occupied real estate330 — — 330 
Development spec & land446 — — 446 
Commercial and industrial4,487 154 448 5,089 
Total$10,392 $154 $2,634 $13,180 

The following table presents the amortized cost basis at March 31, 2025 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:
March 31, 2025
Current30-89 Days Past Due90 Days Past DueTotal
Commercial
Owner occupied real estate$3,070 $651 $2,038 $5,759 
Non-owner occupied real estate927 — — 927 
Development spec & land537 — — 537 
Commercial and industrial3,959 136 — 4,095 
Total$8,493 $787 $2,038 $11,318 

During the quarters ended March 31, 2026 and 2025, the Company had zero and $0.1 million, respectively of loans to borrowers experiencing financial difficulty that had a payment default and were modified within the three months prior to the payment default. For purposes of this disclosure, the Company defines “default” as being 30 days or more past due of contractual interest or principal.
Collateral Dependent Financial Assets
A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent.
The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at March 31, 2026 and December 31, 2025.
March 31, 2026
Real EstateAccounts
Receivable/
Equipment		OtherTotalACL
Allocation
Commercial
Owner occupied real estate$5,669 $44 $— $5,713 $— 
Non–owner occupied real estate2,453 81 398 2,932 — 
Development & spec land446 — — 446 — 
Commercial and industrial1,872 4,517 281 6,670 541 
Total commercial10,440 4,642 679 15,761 541 
Real estate
Residential mortgage679 — — 679 — 
Total real estate679 — — 679 — 
Consumer
Home equity1,845 — — 1,845 89 
Total consumer1,845 — — 1,845 89 
Total collateral dependent loans$12,964 $4,642 $679 $18,285 $630 
December 31, 2025
Real EstateAccounts
Receivable/
Equipment		OtherTotalACL
Allocation
Commercial
Owner occupied real estate$5,395 $— $— $5,395 $114 
Non–owner occupied real estate3,026 — — 3,026 20 
Development & spec land496 — — 496 — 
Commercial and industrial1,690 3,269 673 5,632 882 
Total commercial10,607 3,269 673 14,549 1,016 
Real estate
Residential mortgage929 — — 929 — 
Total real estate929 — — 929 — 
Consumer
Home equity923 — — 923 313 
Total consumer923 — — 923 313 
Total collateral dependent loans$12,459 $3,269 $673 $16,401 $1,329 
As of March 31, 2026, the Company had a carrying value of $3.1 million of repossessed assets. As of March 31, 2026, the Company had a recorded net investment of $1.0 million of residential mortgage and home equity loans in which foreclosure proceedings have commenced. Repossessed assets are a component of other assets within the condensed consolidated balance sheet.
Credit Quality Indicators
Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re–evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the credit quality grade.
•For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $3,000,000 to $6,000,000) are validated by the Loan
Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”).
•Commercial loan officers are responsible for reviewing their loan portfolios and promptly assessing any adverse change in credit quality and revising the risk rating appropriately. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the Credit Department of the change in the credit quality grade. Downgrades are accepted immediately, however, lenders must present their factual information to the Credit Department when recommending an upgrade. Downgrades to impaired status require the concurrence of the CCBO and the Senior Workout Loan Manager.
•The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade.
•Monthly, senior management meets as members of the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, loan modifications, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Credit Losses on Loans and Leases.
For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non–accrual, or are classified as modified loans are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non–accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass.
Horizon Bank employs a nine–grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below.
Risk Grade 1: Excellent (Pass)
Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long–term debt rating of A or better and meeting defined key financial metric ranges.
Risk Grade 2: Good (Pass)
Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three years consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities with required margins where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit histories; or loans to publicly held companies with current long–term debt ratings of Baa or better and meeting defined key financial metric ranges.
Risk Grade 3: Satisfactory (Pass)
Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply:
•At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory;
•At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss.
•The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance.
•During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted.
Risk Grade 4: Satisfactory/Monitored
Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization.
Risk Grade 4W: Management Watch
Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized.
Risk Grade 5: Special Mention
Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges.
Risk Grade 6: Substandard
One or more of the following characteristics may be exhibited in loans classified Substandard:
•Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss.
•Loans are inadequately protected by the current net worth and paying capacity of the obligor.
•The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees.
•Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.
•Unusual courses of action are needed to maintain a high probability of repayment.
•The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments.
•The lender is forced into a subordinated or unsecured position due to flaws in documentation.
•Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms.
•The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.
•There is a significant deterioration in market conditions to which the borrower is highly vulnerable.
•The borrower meets defined key financial metric ranges.
Risk Grade 7: Doubtful
One or more of the following characteristics may be present in loans classified Doubtful:
•Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable.
•The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.
•The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known.
•The borrower meets defined key financial metric ranges.
Risk Grade 8: Loss
Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.
The Company defines term loans as those having a fixed duration, repayment schedule and defined interest rate. Revolving loans include loans with revolving privileges and certain complex lending arrangements involving commitments made by the Company under predefined terms or loans with interchangeable interest rate and repayment options that extend beyond the time of origination. Revolving term loans include loans with revolving privileges and certain complex lending arrangements involving commitments made by the Company under predefined terms, including loans with both revolving and non-revolving components and loans with delayed draw down features.
The following tables present loans by credit grades and origination year at March 31, 2026.
Term Loans by Origination Year
March 31, 202620262025202420232022PriorRevolving Term LoansRevolving
Loans		Total
Commercial
Owner occupied real estate
Pass$21,446 $103,559 $87,726 $81,991 $73,978 $219,111 $77,288 $15,516 $680,615 
Special Mention— 900 5,811 — — 10,434 2,328 — 19,473 
Substandard— — 4,685 9,371 1,661 2,446 — 50 18,213 
Doubtful— — — — — — — — — 
Total owner occupied real estate$21,446 $104,459 $98,222 $91,362 $75,639 $231,991 $79,616 $15,566 $718,301 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Non–owner occupied real estate
Pass$13,702 $193,046 $198,393 $157,237 $227,382 $510,985 $309,411 $17,231 $1,627,387 
Special Mention— — — 1,295 28,144 5,762 — — 35,201 
Substandard— 490 2,076 3,668 597 429 67 — 7,327 
Doubtful— — — — — — — — — 
Total non–owner occupied real estate$13,702 $193,536 $200,469 $162,200 $256,123 $517,176 $309,478 $17,231 $1,669,915 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Residential spec homes
Pass$— $4,353 $291 $— $— $— $6,283 $6,308 $17,235 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total residential spec homes$— $4,353 $291 $— $— $— $6,283 $6,308 $17,235 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Development & spec land
Pass$— $3,854 $766 $3,079 $1,070 $2,708 $24,857 $1,351 $37,685 
Special Mention— — — — — — — — — 
Substandard— — — — — — 446 — 446 
Doubtful— — — — — — — — — 
Total development & spec land$— $3,854 $766 $3,079 $1,070 $2,708 $25,303 $1,351 $38,131 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Commercial and industrial
Pass$45,693 $253,313 $177,679 $68,703 $96,779 $98,733 $51,576 $191,989 $984,465 
Special Mention— 1,100 336 622 97 294 10,727 9,228 22,404 
Substandard— 4,135 2,415 5,691 199 1,615 973 1,171 16,199 
Doubtful— — — — — — — — — 
Total commercial and industrial$45,693 $258,548 $180,430 $75,016 $97,075 $100,642 $63,276 $202,388 $1,023,068 
Gross charge-offs during period$— $19 $406 $260 $— $7 $9 $— $701 
Total commercial$80,841 $564,750 $480,178 $331,657 $429,907 $852,517 $483,956 $242,844 $3,466,650 
Term Loans by Origination Year
March 31, 202620262025202420232022PriorRevolving Term LoansRevolving
Loans		Total
Real estate
Residential mortgage
Performing$9,238 $57,346 $71,670 $91,316 $140,182 $338,821 $— $— $708,573 
Non–performing— — 554 2,272 2,505 5,331 — — 10,662 
Total residential mortgage$9,238 $57,346 $72,224 $93,588 $142,687 $344,152 $— $— $719,235 
Gross charge-offs during period$— $— $— $260 $137 $129 $— $— $526 
Residential construction
Performing$— $— $2,025 $— $— $— $28,848 $— $30,873 
Non–performing— — — — — — — — — 
Total residential construction$— $— $2,025 $— $— $— $28,848 $— $30,873 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Total real estate$9,238 $57,346 $74,249 $93,588 $142,687 $344,152 $28,848 $— $750,108 
Term Loans by Origination Year
March 31, 202620262025202420232022PriorRevolving Term LoansRevolving
Loans		Total
Consumer
Direct installment
Performing$1,584 $6,866 $5,576 $44,711 $4,705 $7,314 $109 $1,328 $72,193 
Non–performing— 4 — 376 26 41 — — 447 
Total direct installment$1,584 $6,870 $5,576 $45,087 $4,731 $7,355 $109 $1,328 $72,640 
Gross charge-offs during period$— $3 $31 $31 $3 $31 $10 $5 $114 
Indirect installment
Performing$— $— $209 $3,102 $8,396 $4,111 $— $— $15,818 
Non–performing— — 3 254 442 252 — — 951 
Total indirect installment$— $— $212 $3,356 $8,838 $4,363 $— $— $16,769 
Gross charge-offs during period$— $— $13 $146 $219 $133 $— $— $511 
Home equity
Performing$1,926 $10,923 $9,942 $15,077 $11,135 $8,701 $35,564 $469,940 $563,208 
Non–performing— — 132 726 708 192 7,416 — 9,174 
Total home equity$1,926 $10,923 $10,074 $15,803 $11,843 $8,893 $42,980 $469,940 $572,382 
Gross charge-offs during period$— $— $— $4 $33 $4 $1,424 $— $1,465 
Total consumer$3,510 $17,793 $15,862 $64,246 $25,412 $20,611 $43,089 $471,268 $661,791 
The following tables present loans by credit grades and origination year at December 31, 2025.
Term Loans by Origination Year
December 31, 202520252024202320222021PriorRevolving Term LoansRevolving
Loans		Total
Commercial
Owner occupied real estate
Pass$103,721 $90,288 $83,508 $75,503 $61,816 $167,595 $69,454 $14,592 $666,477 
Special Mention900 5,013 — — 1,375 6,258 2,343 — 15,889 
Substandard— 3,706 9,421 1,674 — 2,110 — 50 16,961 
Doubtful— — — — — — — — — 
Total owner occupied real estate$104,621 $99,007 $92,929 $77,177 $63,191 $175,963 $71,797 $14,642 $699,327 
Gross charge-offs during period$316 $502 $— $50 $— $49 $36 $— $953 
Non–owner occupied real estate
Pass$195,568 $192,570 $152,602 $230,638 $133,516 $400,187 $306,632 $14,609 $1,626,322 
Special Mention490 — 1,304 28,267 — 5,771 — — 35,832 
Substandard— 2,163 3,686 609 — 580 68 — 7,106 
Doubtful— — — — — — — — — 
Total non–owner occupied real estate$196,058 $194,733 $157,592 $259,514 $133,516 $406,538 $306,700 $14,609 $1,669,260 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Residential spec homes
Pass$4,896 $294 $— $— $— $— $5,329 $7,222 $17,741 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total residential spec homes$4,896 $294 $— $— $— $— $5,329 $7,222 $17,741 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Development & spec land
Pass$3,892 $816 $3,096 $746 $1,021 $1,813 $22,669 $986 $35,039 
Special Mention— — — — — — — — — 
Substandard— — — — — — 496 — 496 
Doubtful— — — — — — — — — 
Total development & spec land$3,892 $816 $3,096 $746 $1,021 $1,813 $23,165 $986 $35,535 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Commercial and industrial
Pass$273,848 $193,508 $74,420 $102,213 $53,264 $52,660 $48,648 $172,692 $971,253 
Special Mention1,229 690 781 547 33 300 10,386 10,921 24,887 
Substandard2,027 2,073 6,490 82 32 1,578 1,001 1,122 14,405 
Doubtful— — — — — — — — — 
Total commercial and industrial$277,104 $196,271 $81,691 $102,842 $53,329 $54,538 $60,035 $184,735 $1,010,545 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Total commercial$586,571 $491,121 $335,308 $440,279 $251,057 $638,852 $467,026 $222,194 $3,432,408 
Term Loans by Origination Year
December 31, 202520252024202320222021PriorRevolving Term LoansRevolving
Loans		Total
Real estate
Residential mortgage
Performing$58,110 $76,445 $104,783 $143,616 $126,636 $221,710 $— $— $731,300 
Non–performing— 505 2,428 2,236 453 4,555 — — 10,177 
Total residential mortgage$58,110 $76,950 $107,211 $145,852 $127,089 $226,265 $— $— $741,477 
Gross charge-offs during period$— $135 $223 $188 $355 $161 $— $— $1,062 
Residential construction
Performing$— $2,034 $— $— $— $— $28,916 $— $30,950 
Non–performing— — — — — — — — — 
Total residential construction$— $2,034 $— $— $— $— $28,916 $— $30,950 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Total real estate$58,110 $78,984 $107,211 $145,852 $127,089 $226,265 $28,916 $— $772,427 
Term Loans by Origination Year
December 31, 202520252024202320222021PriorRevolving Term LoansRevolving
Loans		Total
Consumer
Direct installment
Performing$8,330 $6,354 $47,094 $5,160 $3,160 $4,942 $84 $1,335 $76,459 
Non–performing— — 578 69 40 28 — — 715 
Total direct installment$8,330 $6,354 $47,672 $5,229 $3,200 $4,970 $84 $1,335 $77,174 
Gross charge-offs during period$11 $141 $85 $73 $84 $5 $8 $— $407 
Indirect installment
Performing$— $220 $3,584 $9,469 $3,269 $1,902 $— $— $18,444 
Non–performing— 29 275 570 232 122 — — 1,228 
Total indirect installment$— $249 $3,859 $10,039 $3,501 $2,024 $— $— $19,672 
Gross charge-offs during period$— $245 $885 $1,414 $477 $237 $— $— $3,258 
Home equity
Performing$12,301 $10,393 $16,623 $12,032 $4,444 $7,546 $32,721 $470,524 $566,584 
Non–performing— 236 614 653 53 173 6,548 — 8,277 
Total home equity$12,301 $10,629 $17,237 $12,685 $4,497 $7,719 $39,269 $470,524 $574,861 
Gross charge-offs during period$— $— $20 $7 $— $57 $843 $— $927 
Total consumer$20,631 $17,232 $68,768 $27,953 $11,198 $14,713 $39,353 $471,859 $671,707