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ALLOWANCE FOR CREDIT LOSSES - LOANS

12 Months Ended

Dec. 31, 2025

7. ALLOWANCE FOR CREDIT LOSSES – LOANS

The following tables summarize the roll forward of the allowance for credit losses by loan portfolio segment for the years ended December 31, 2025 and 2024 (in thousands).

BALANCE AT

CHARGE-

PROVISION

BALANCE AT

 

DECEMBER 31, 2024

OFFS

 

RECOVERIES

 

(RECOVERY)

 

DECEMBER 31, 2025

Commercial real estate (owner occupied)

398

—

(103)

319

Commercial and industrial

2,860

(1,774)

1,836

2,987

Commercial real estate (non-owner occupied) - retail

3,695

—

(447)

3,248

Commercial real estate (non-owner occupied) - multi-family

1,478

—

(75)

1,403

Other commercial real estate (non-owner occupied)

3,451

(3,145)

3,407

3,725

Residential mortgages

839

—

(548)

296

Consumer

1,191

(154)

1,150

Total

13,912

(5,073)

181

4,108

13,128


		BALANCE AT		CHARGE-						PROVISION			BALANCE AT
		DECEMBER 31, 2023		OFFS			RECOVERIES			(RECOVERY)			DECEMBER 31, 2024
Commercial real estate (owner occupied)		$	1,529	$	—		$	24		$	(1,155)		$	398
Commercial and industrial			3,030		(427)			45			212			2,860
Commercial real estate (non-owner occupied) - retail			3,488		—			—			207			3,695
Commercial real estate (non-owner occupied) - multi-family			1,430		—			3			45			1,478
Other commercial real estate (non-owner occupied)			3,428		(1,571)			11			1,583			3,451
Residential mortgages			1,021		—			18			(200)			839
Consumer			1,127		(207)			81			190			1,191
Total		$	15,053	$	(2,205)		$	182		$	882		$	13,912

The Company recorded a $4.1 million provision for credit losses on the loan portfolio in 2025 compared to a provision of $882,000 for the year ended December 31, 2024, resulting in an unfavorable change of $3.2 million. The significant increase in the provision for credit losses for 2025 primarily reflects the charge-off activity during the year. Specifically, a $3.1 million charge-off was necessary to resolve the Company’s largest problem commercial real estate loan secured by a mixed use retail/office property in the Pittsburgh market, in addition to charge-offs of $1.8 million within the commercial and industrial loan segment. The Company recognized net loan charge-offs of $4.9 million, or 0.46% of total average loans, in 2025 compared to net loan charge-offs of $2.0 million, or 0.19% of total average loans, in 2024. Tempering the impact from the charge-offs on the 2025 provision expense was a year-over-year contraction in outstanding loan balances.

The lower provision for credit losses for 2024 reflected provision recoveries recognized for the loan portfolio during the first and third quarters. These recoveries were more than offset by the fourth quarter 2024 provision expense which was unfavorably impacted by increased loss rates, due to charge-off activity, as well as strong loan growth.

The following tables summarize the loan portfolio and allowance for credit losses by the primary segments of the loan portfolio.

AT DECEMBER 31, 2025

COMMERCIAL

REAL ESTATE

OTHER COMMERCIAL

REAL ESTATE

COMMERCIAL

(NON-OWNER OCCUPIED) -

REAL ESTATE

RESIDENTIAL

Loans:

 

(OWNER OCCUPIED)

 

AND INDUSTRIAL

 

RETAIL

 

MULTI-FAMILY

 

(NON-OWNER OCCUPIED)

 

MORTGAGES

 

CONSUMER

 

TOTAL

(IN THOUSANDS)

Individually evaluated

2,875

2,148

415

—

2,034

155

—

7,627

Collectively evaluated

82,358

142,177

171,115

131,085

215,901

169,659

112,805

1,025,100

Total loans

85,233

144,325

171,530

131,085

217,935

169,814

112,805

1,032,727

AT DECEMBER 31, 2025

COMMERCIAL

REAL ESTATE

OTHER COMMERCIAL

Allowance for

REAL ESTATE

COMMERCIAL

(NON-OWNER OCCUPIED) -

REAL ESTATE

RESIDENTIAL

credit losses:

 

(OWNER OCCUPIED)

 

AND INDUSTRIAL

 

RETAIL

 

MULTI-FAMILY

 

(NON-OWNER OCCUPIED)

 

MORTGAGES

 

CONSUMER

 

TOTAL

(IN THOUSANDS)

Specific reserve allocation

—

558

—

558

General reserve allocation

319

2,429

3,248

1,403

3,725

296

1,150

12,570

Total allowance for credit losses

319

2,987

3,248

1,403

3,725

296

1,150

13,128


	AT DECEMBER 31, 2024
							COMMERCIAL			COMMERCIAL
	COMMERCIAL						REAL ESTATE			REAL ESTATE			OTHER COMMERCIAL
	REAL ESTATE			COMMERCIAL			(NON-OWNER OCCUPIED) -			(NON-OWNER OCCUPIED) -			REAL ESTATE			RESIDENTIAL
Loans:	(OWNER OCCUPIED)			AND INDUSTRIAL			RETAIL			MULTI-FAMILY			(NON-OWNER OCCUPIED)			MORTGAGES			CONSUMER			TOTAL

	(IN THOUSANDS)
Individually evaluated	$	3,429		$	1,675		$	—		$	—		$	8,773		$	379		$	10		$	14,266
Collectively evaluated		83,524			145,576			181,778			132,364			225,109			176,731			108,601			1,053,683
Total loans	$	86,953		$	147,251		$	181,778		$	132,364		$	233,882		$	177,110		$	108,611		$	1,067,949


	AT DECEMBER 31, 2024
							COMMERCIAL			COMMERCIAL
	COMMERCIAL						REAL ESTATE			REAL ESTATE			OTHER COMMERCIAL
Allowance for	REAL ESTATE			COMMERCIAL			(NON-OWNER OCCUPIED) -			(NON-OWNER OCCUPIED) -			REAL ESTATE			RESIDENTIAL
credit losses:	(OWNER OCCUPIED)			AND INDUSTRIAL			RETAIL			MULTI-FAMILY			(NON-OWNER OCCUPIED)			MORTGAGES			CONSUMER			TOTAL

	(IN THOUSANDS)
Specific reserve allocation	$	—		$	541		$	—		$	—		$	—		$	—		$	—		$	541
General reserve allocation		398			2,319			3,695			1,478			3,451			839			1,191			13,371
Total allowance for credit losses	$	398		$	2,860		$	3,695		$	1,478		$	3,451		$	839		$	1,191		$	13,912

The following tables present the amortized cost basis of collateral-dependent loans which were individually evaluated for a specific reserve allocation in the allowance for credit losses by class of loans (in thousands).


	COLLATERAL TYPE
DECEMBER 31, 2025	REAL ESTATE		BUSINESS ASSETS
Commercial:
Commercial real estate (owner occupied)	$	2,774	$	101
Commercial and industrial		1,362		72
Commercial real estate (non-owner occupied):
Retail		415		—
Other		2,034		—
Residential mortgages		155		—
Total	$	6,740	$	173


	COLLATERAL TYPE
DECEMBER 31, 2024	REAL ESTATE
Commercial:
Commercial real estate (owner occupied)	$	3,429
Commercial and industrial		1,000
Commercial real estate (non-owner occupied):
Other		8,773
Residential mortgages		378
Consumer		10
Total	$	13,590

Non-Performing Assets from the Loan Portfolio

Non-performing assets from the loan portfolio are comprised of (i) loans which are on a non-accrual basis, (ii) loans which are contractually past due 90 days or more as to interest or principal payments, and (iii) other real estate owned (OREO – real estate acquired through foreclosure and in-substance foreclosures) and repossessed assets.

Loans will be transferred to non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating the loan include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The following table presents non-accrual loans, loans past due 90 days or more still accruing interest, and OREO and repossessed assets by portfolio class (in thousands).


	AT DECEMBER 31, 2025
	NON-ACCRUAL WITH NO ACL			NON-ACCRUAL WITH ACL			TOTAL NON-ACCRUAL			LOANS PAST DUE 90 DAYS OR MORE STILL ACCRUING		OREO AND REPOSSESSED ASSETS			TOTAL NON-PERFORMING ASSETS
Commercial real estate (owner occupied)	$	2,875		$	—		$	2,875		$	—	$	—		$	2,875
Commercial and industrial		1,437			714			2,151			—		216			2,367
Commercial real estate (non-owner occupied) - retail		415			—			415			—		—			415
Other commercial real estate (non-owner occupied)		2,034			—			2,034			—		—			2,034
Residential mortgages		155			51			206			10		—			216
Consumer		—			611			611			—		—			611
Total	$	6,916		$	1,376		$	8,292		$	10	$	216		$	8,518


	AT DECEMBER 31, 2024
	NON-ACCRUAL WITH NO ACL			NON-ACCRUAL WITH ACL			TOTAL NON-ACCRUAL			LOANS PAST DUE 90 DAYS OR MORE STILL ACCRUING		OREO AND REPOSSESSED ASSETS			TOTAL NON-PERFORMING ASSETS
Commercial real estate (owner occupied)	$	152		$	—		$	152		$	—	$	—		$	152
Commercial and industrial		—			675			675			97		234			1,006
Other commercial real estate (non-owner occupied)		8,773			—			8,773			—		1,476			10,249
Residential mortgages		379			—			379			26		14			419
Consumer		10			821			831			—		—			831
Total	$	9,314		$	1,496		$	10,810		$	123	$	1,724		$	12,657

It should be noted that the Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed in non-accrual status, any outstanding interest is reversed against interest income.

Non-performing assets from the loan portfolio decreased from $12.7 million at December 31, 2024 to $8.5 million at December 31, 2025. Non-performing assets from the loan portfolio were at 0.82% of total loans as of December 31, 2025 compared to 1.19% of total loans as of December 31, 2024. In summary, the allowance for credit losses provided 158% coverage of non-performing loans and 1.27% of total loans at December 31, 2025 compared to 127% coverage of non-performing loans and 1.30% of total loans at December 31, 2024.

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in other real estate owned and repossessed assets on the Consolidated Balance Sheets. The Company had no foreclosed residential real estate included in other real estate owned and repossessed assets as of December 31, 2025 compared to $14,000 as of December 31, 2024. As of December 31, 2025, the Company had initiated formal foreclosure procedures on $130,000 of residential mortgages.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk.

Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five pass categories are aggregated, while the pass-6, special mention, substandard and doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans in the doubtful category have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for credit losses are typically placed in substandard or doubtful.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12-month period. Generally, consumer and residential mortgage loans are included in the pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan Review Department is an experienced, independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The actual loan review coverage for the year ended December 31, 2025 was 43% of the commercial loan portfolio.

In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated pass-6 with aggregate balances greater than $2,000,000, all credits rated special mention or substandard with aggregate balances greater than $250,000, and all credits rated doubtful with aggregate balances greater than $100,000 on an individual basis to the Company’s Loan Loss Reserve Committee on a quarterly basis. Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans.

The following tables present the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system.


	AT DECEMBER 31, 2025
													REVOLVING		REVOLVING
													LOANS		LOANS
													AMORTIZED		CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR												COST		TO
	2025		2024		2023		2022		2021		PRIOR		BASIS		TERM		TOTAL

	(IN THOUSANDS)
Commercial real estate (owner occupied)
Pass	$	8,901	$	10,312	$	16,564	$	6,050	$	9,460	$	29,511	$	433	$	—	$	81,231
Special Mention		—		—		—		—		—		520		223		—		743
Substandard		—		—		—		—		2,738		521		—		—		3,259
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	8,901	$	10,312	$	16,564	$	6,050	$	12,198	$	30,552	$	656	$	—	$	85,233
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial
Pass	$	22,994	$	10,640	$	14,643	$	12,800	$	5,307	$	18,626	$	50,490	$	5,010	$	140,510
Special Mention		—		—		—		—		—		—		1,240		—		1,240
Substandard		—		—		—		307		363		304		1,178		25		2,177
Doubtful		—		—		—		—		—		398		—		—		398
Total	$	22,994	$	10,640	$	14,643	$	13,107	$	5,670	$	19,328	$	52,908	$	5,035	$	144,325
Current period gross charge-offs	$	—	$	—	$	—	$	200	$	1,396	$	178	$	—	$	—	$	1,774
Commercial real estate (non-owner occupied) - retail
Pass	$	17,984	$	26,374	$	35,435	$	14,284	$	30,707	$	46,305	$	26	$	—	$	171,115
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		415		—		—		—		—		—		415
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	17,984	$	26,374	$	35,850	$	14,284	$	30,707	$	46,305	$	26	$	—	$	171,530
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate (non-owner occupied) - multi-family
Pass	$	9,762	$	24,594	$	32,750	$	11,515	$	15,867	$	34,378	$	24	$	—	$	128,890
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		2,195		—		—		2,195
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	9,762	$	24,594	$	32,750	$	11,515	$	15,867	$	36,573	$	24	$	—	$	131,085
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	23,090	$	22,060	$	27,401	$	32,037	$	40,743	$	58,392	$	6,973	$	—	$	210,696
Special Mention		—		—		—		—		—		5,205		—		—		5,205
Substandard		—		—		—		180		—		1,854		—		—		2,034
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	23,090	$	22,060	$	27,401	$	32,217	$	40,743	$	65,451	$	6,973	$	—	$	217,935
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	3,145	$	—	$	—	$	3,145
Total by risk rating
Pass	$	82,731	$	93,980	$	126,793	$	76,686	$	102,084	$	187,212	$	57,946	$	5,010	$	732,442
Special Mention		—		—		—		—		—		5,725		1,463		—		7,188
Substandard		—		—		415		487		3,101		4,874		1,178		25		10,080
Doubtful		—		—		—		—		—		398		—		—		398
Total	$	82,731	$	93,980	$	127,208	$	77,173	$	105,185	$	198,209	$	60,587	$	5,035	$	750,108
Current period gross charge-offs	$	—	$	—	$	—	$	200	$	1,396	$	3,323	$	—	$	—	$	4,919


	AT DECEMBER 31, 2024
													REVOLVING		REVOLVING
													LOANS		LOANS
													AMORTIZED		CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR												COST		TO
	2024		2023		2022		2021		2020		PRIOR		BASIS		TERM		TOTAL

	(IN THOUSANDS)
Commercial real estate (owner occupied)
Pass	$	10,294	$	17,016	$	6,648	$	10,675	$	10,476	$	26,393	$	324	$	856	$	82,682
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		3,680		—		591		—		—		4,271
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	10,294	$	17,016	$	6,648	$	14,355	$	10,476	$	26,984	$	324	$	856	$	86,953
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial
Pass	$	16,714	$	19,357	$	20,977	$	7,397	$	4,568	$	19,280	$	54,455	$	—	$	142,748
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		480		409		1,753		—		689		1,172		—		4,503
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	16,714	$	19,837	$	21,386	$	9,150	$	4,568	$	19,969	$	55,627	$	—	$	147,251
Current period gross charge-offs	$	—	$	—	$	427	$	—	$	—	$	—	$	—	$	—	$	427
Commercial real estate (non-owner occupied) - retail
Pass	$	29,349	$	38,912	$	20,935	$	31,934	$	21,322	$	38,047	$	32	$	942	$	181,473
Special Mention		—		—		305		—		—		—		—		—		305
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	29,349	$	38,912	$	21,240	$	31,934	$	21,322	$	38,047	$	32	$	942	$	181,778
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate (non-owner occupied) - multi-family
Pass	$	25,984	$	28,807	$	16,423	$	16,816	$	11,513	$	30,066	$	475	$	—	$	130,084
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		915		1,365		—		—		2,280
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	25,984	$	28,807	$	16,423	$	16,816	$	12,428	$	31,431	$	475	$	—	$	132,364
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	27,801	$	32,514	$	35,365	$	40,876	$	16,226	$	61,619	$	4,537	$	194	$	219,132
Special Mention		—		—		—		—		—		3,488		—		—		3,488
Substandard		—		—		569		199		—		10,494		—		—		11,262
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	27,801	$	32,514	$	35,934	$	41,075	$	16,226	$	75,601	$	4,537	$	194	$	233,882
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,571	$	—	$	—	$	1,571
Total by risk rating
Pass	$	110,142	$	136,606	$	100,348	$	107,698	$	64,105	$	175,405	$	59,823	$	1,992	$	756,119
Special Mention		—		—		305		—		—		3,488		—		—		3,793
Substandard		—		480		978		5,632		915		13,139		1,172		—		22,316
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	110,142	$	137,086	$	101,631	$	113,330	$	65,020	$	192,032	$	60,995	$	1,992	$	782,228
Current period gross charge-offs	$	—	$	—	$	427	$	—	$	—	$	1,571	$	—	$	—	$	1,998

It is generally the policy of the Bank that the outstanding balance of any residential mortgage or home equity loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge-down is recorded for any deficiency balance determined from the collateral evaluation. It is generally the policy of the Bank that the outstanding balance of any unsecured consumer loan that exceeds 90-days past due as to principal and/or interest is charged off. Loans past due 90 days or more and loans in non-accrual status are considered non-performing. The following tables present the performing and non-performing outstanding balances of the residential mortgage and consumer loan portfolio classes.


	AT DECEMBER 31, 2025
																			REVOLVING			REVOLVING
																			LOANS			LOANS
																			AMORTIZED			CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR																		COST			TO
	2025			2024			2023			2022			2021			PRIOR			BASIS			TERM			TOTAL

	(IN THOUSANDS)
Residential mortgages
Performing	$	4,377		$	13,914		$	15,006		$	10,054		$	53,478		$	72,769		$	—		$	—		$	169,598
Non-performing		—			—			—			—			155			61			—			—			216
Total	$	4,377		$	13,914		$	15,006		$	10,054		$	53,633		$	72,830		$	—		$	—		$	169,814
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer
Performing	$	11,546		$	8,581		$	7,999		$	12,952		$	5,820		$	5,363		$	59,823		$	110		$	112,194
Non-performing		—			5			75			17			—			322			192			—			611
Total	$	11,546		$	8,586		$	8,074		$	12,969		$	5,820		$	5,685		$	60,015		$	110		$	112,805
Current period gross charge-offs	$	1		$	28		$	41		$	8		$	1		$	75		$	—		$	—		$	154
Total by payment performance
Performing	$	15,923		$	22,495		$	23,005		$	23,006		$	59,298		$	78,132		$	59,823		$	110		$	281,792
Non-performing		—			5			75			17			155			383			192			—			827
Total	$	15,923		$	22,500		$	23,080		$	23,023		$	59,453		$	78,515		$	60,015		$	110		$	282,619
Current period gross charge-offs	$	1		$	28		$	41		$	8		$	1		$	75		$	—		$	—		$	154


	AT DECEMBER 31, 2024
																			REVOLVING			REVOLVING
																			LOANS			LOANS
																			AMORTIZED			CONVERTED
	TERM LOANS AMORTIZED COST BASIS BY ORIGINATION YEAR																		COST			TO
	2024			2023			2022			2021			2020			PRIOR			BASIS			TERM			TOTAL

	(IN THOUSANDS)
Residential mortgages
Performing	$	12,877		$	15,602		$	10,400		$	57,540		$	41,868		$	38,418		$	—		$	—		$	176,705
Non-performing		—			—			—			—			—			405			—			—			405
Total	$	12,877		$	15,602		$	10,400		$	57,540		$	41,868		$	38,823		$	—		$	—		$	177,110
Current period gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer
Performing	$	11,476		$	10,988		$	16,397		$	7,605		$	2,475		$	4,299		$	53,876		$	664		$	107,780
Non-performing		—			110			46			—			59			344			272			—			831
Total	$	11,476		$	11,098		$	16,443		$	7,605		$	2,534		$	4,643		$	54,148		$	664		$	108,611
Current period gross charge-offs	$	5		$	6		$	21		$	19		$	13		$	143		$	—		$	—		$	207
Total by payment performance
Performing	$	24,353		$	26,590		$	26,797		$	65,145		$	44,343		$	42,717		$	53,876		$	664		$	284,485
Non-performing		—			110			46			—			59			749			272			—			1,236
Total	$	24,353		$	26,700		$	26,843		$	65,145		$	44,402		$	43,466		$	54,148		$	664		$	285,721
Current period gross charge-offs	$	5		$	6		$	21		$	19		$	13		$	143		$	—		$	—		$	207

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans.

AT DECEMBER 31, 2025

30 – 59

60 – 89

90 OR MORE

DAYS

TOTAL

NON-

TOTAL

CURRENT

PAST DUE

ACCRUAL

LOANS

(IN THOUSANDS)

Commercial real estate (owner occupied)

82,358

—

2,875

85,233

Commercial and industrial

141,691

455

—

483

2,151

144,325

Commercial real estate (non-owner occupied) - retail

171,115

—

415

171,530

Commercial real estate (non-owner occupied) - multi-family

131,085

—

131,085

Other commercial real estate (non-owner occupied)

215,901

—

2,034

217,935

Residential mortgages

168,602

926

1,006

206

169,814

Consumer

111,354

728

112

—

840

611

112,805

Total

1,022,106

2,109

210

2,329

8,292

1,032,727


	AT DECEMBER 31, 2024

			30 – 59		60 – 89			90 OR MORE
			DAYS		DAYS			DAYS		TOTAL		NON-		TOTAL
	CURRENT		PAST DUE		PAST DUE			PAST DUE		PAST DUE		ACCRUAL		LOANS

	(IN THOUSANDS)
Commercial real estate (owner occupied)	$	86,368	$	433	$	—		$	—	$	433	$	152	$	86,953
Commercial and industrial		144,627		1,852		—			97		1,949		675		147,251
Commercial real estate (non-owner occupied) - retail		181,778		—		—			—		—		—		181,778
Commercial real estate (non-owner occupied) - multi-family		132,364		—		—			—		—		—		132,364
Other commercial real estate (non-owner occupied)		224,914		195		—			—		195		8,773		233,882
Residential mortgages		175,817		852		36			26		914		379		177,110
Consumer		106,796		948		36			—		984		831		108,611
Total	$	1,052,664	$	4,280	$	72		$	123	$	4,475	$	10,810	$	1,067,949

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company modifies loans to borrowers experiencing financial difficulty as a result of our loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, or combinations thereof.

●

Principal forgiveness includes principal and accrued interest forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL.

●

Interest rate reductions include modifications where the interest rate is reduced, and interest is deferred.

●

Term extensions extend the original contractual maturity date of the loan.

●

Payment delays consist of modifications where we expect to collect the contractual amounts due but result in a delay in the receipt of payments specified under the original loan terms. We generally consider payment delays to be insignificant when the delay is three months or less.

The following tables summarize the amortized cost basis of loans modified to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024 (in thousands).


	YEAR ENDED DECEMBER 31, 2025
	TERM EXTENSION
	AMORTIZED COST BASIS			% OF TOTAL CLASS OF LOANS
Other commercial real estate (non-owner occupied)	$	2,349			1.08	%
Residential mortgages		191			0.11	%
Total	$	2,540

As of December 31, 2025, the modified loans described in the table above were current as to payments.


	YEAR ENDED DECEMBER 31, 2024
	PAYMENT DELAY
	AMORTIZED COST BASIS			% OF TOTAL CLASS OF LOANS
Commercial real estate (owner occupied)	$	152			0.17	%
Total	$	152

	TERM EXTENSION
	AMORTIZED COST BASIS			% OF TOTAL CLASS OF LOANS
Commercial and industrial	$	154			0.10	%
Total	$	154

	COMBINATION - PRINCIPAL FORGIVENESS AND TERM EXTENSION
	AMORTIZED COST BASIS			% OF TOTAL CLASS OF LOANS
Commercial and industrial	$	480			0.33	%
Total	$	480

At December 31, 2025 and 2024, the Company had no unfunded loan commitments associated with the loan modifications to borrowers experiencing financial difficulty.

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024.


YEAR ENDED DECEMBER 31, 2025
TERM EXTENSION
LOAN TYPE		FINANCIAL EFFECT
Other commercial real estate (non-owner occupied)		Provided a maturity date extension of 15 months. In connection with the modification, the borrower pledged a $1.0 million Bank deposit as additional collateral.
Residential mortgages		Provided a maturity date extension of 230 months (approximately 19 years).


YEAR ENDED DECEMBER 31, 2024
PAYMENT DELAY
LOAN TYPE		FINANCIAL EFFECT
Commercial real estate (owner occupied)		Provided 60 months of additional amortization period to lower borrower's monthly payment.

TERM EXTENSION
LOAN TYPE		FINANCIAL EFFECT
Commercial and industrial		During the first, second, and third quarters of 2024, provided a maturity date extension of 90 days and modified seasonal principal and interest payments to interest only until maturity. During the fourth quarter of 2024, provided the same borrower an additional maturity date extension of one year and required monthly principal and interest payments.

COMBINATION - PRINCIPAL FORGIVENESS AND TERM EXTENSION
LOAN TYPE		FINANCIAL EFFECT
Commercial and industrial		As a result of the borrower's bankruptcy, the maturity date of the loan was extended four years and a portion of the principal balance was converted to an equity investment in the borrower.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company had no loans which were modified to borrowers experiencing financial difficulty which subsequently defaulted during the year ended December 31, 2025. An other commercial real estate (non-owner occupied) loan modified during the second quarter of 2023 was in non-accrual status and significantly past due as of December 31, 2024. The loan was secured by a mixed use (retail/office) property located within the City of Pittsburgh, but not in the downtown central business district. The loan was considered in default and the Company initiated formal foreclosure procedures on the property during 2024. Further, the property was sold during the fourth quarter of 2025, resulting in the pay-off and final charge-off of the loan as of December 31, 2025.