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Loans
 3 Months Ended
Mar. 31, 2026
Loans [Abstract]  
Loans
Note 5 – Loans

The Company originates commercial, industrial, agricultural, residential, and consumer loans primarily to customers throughout north central, central, south central and south eastern Pennsylvania, southern New York, Wilmington, Dover and Georgetown, Delaware and Burlington County, New Jersey. Although the Company had a diversified loan portfolio at March 31, 2026 and December 31, 2025, a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic conditions within these regions. The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for credit losses - loans as of March 31, 2026 and December 31, 2025 (in thousands):
   
March 31, 2026
    
December 31, 2025
  
Real estate loans:
            
Residential
  
$
336,066
    
$
340,972
  
Commercial
    
1,249,900
      
1,218,514
  
Agricultural
    
344,938
      
347,448
  
Construction
    
83,217
      
93,965
  
Consumer
    
19,592
      
88,210
  
Other commercial loans
    
170,628
      
179,166
  
Other agricultural loans
    
30,004
      
30,247
  
State and political subdivision loans
    
63,877
      
52,100
  
Total
    
2,298,222
      
2,350,622
  
Allowance for credit losses - loans
    
(22,894
 )
   
(22,806
 )
Net loans
  
$
2,275,328
    
$
2,327,816
  

Allowance for Credit Losses - Loans

The allowance for credit losses related to loans consists of loans evaluated collectively and individually for expected credit losses. It represents an estimate of credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. Loans individually evaluated consist of non-accrual commercial loans and recently modified loans that were experiencing financial difficulty at the time of the modification. The allowance for credit losses for off-balance sheet credit exposures includes estimated losses on unfunded loan commitments, letters of credit and other off-balance sheet credit exposures. The total allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The following table presents the components of the allowance for credit losses as of March 31, 2026 and December 31, 2025 (in thousands):


  
March 31, 2026
    
December 31, 2025
  
Allowance for Credit Losses - Loans
  
$
22,894
    
$
22,806
  
Allowance for Credit Losses - Off-Balance Sheet Credit Exposure
    
1,519
      
1,163
  
Total allowance for credit losses
  
$
24,413
    
$
23,969
  

The following table presents the activity in the allowance for credit losses for the three months ended March 31, 2026 and 2025 (in thousands):

   
Allowance for Credit
Losses - Loans
    
Allowance for Credit
Losses - Off-Balance
Sheet Credit
Exposure
    
Total
  
Balance at December 31, 2025
  
$
22,806
    
$
1,163
    
$
23,969
  
Loans charge-off
    
(78
)
    
-
      
(78
)
Recoveries of loans previously charged-off
    
22
      
-
      
22
  
Net loans charged-off
    
(56
)
    
-
      
(56
)
Provision for credit losses
    
144
      
356
      
500
  
Balance at March 31, 2026
  
$
22,894
    
$
1,519
    
$
24,413
  
 
                        
Balance at December 31, 2024
  
$
21,699
    
$
676
    
$
22,375
  
Loans charge-off
    
(185
)
    
-
      
(185
)
Recoveries of loans previously charged-off
    
29
      
-
      
29
  
Net loans charged-off
    
(156
)
    
-
      
(156
)
Provision for credit losses
    
538
      
87
      
625
  
Balance at March 31, 2025
  
$
22,081
    
$
763
    
$
22,844
  
The following tables present the activity in the allowance for credit losses – loans, by portfolio segment, for the three months ended March 31, 2026 and 2025 (in thousands):

   
For the three months ended March 31, 2026
  
   
Balance at
December 31, 2025
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
March 31, 2026
  
Real estate loans:
                              
Residential
  
$
3,112
    
$
-
    
$
12
    
$
(383
)
  
$
2,741
  
Commercial
    
10,017
      
-
      
-
      
588
      
10,605
  
Agricultural
    
4,841
      
-
      
-
      
(328
)
    
4,513
  
Construction
    
916
      
-
      
-
      
(114
)
    
802
  
Consumer
    
1,201
      
(13
)
    
7
      
(159
)
    
1,036
  
Other commercial loans
    
2,534
      
(65
)
    
3
      
343
      
2,815
  
Other agricultural loans
    
115
      
-
      
-
      
108
      
223
  
State and political
                                        
subdivision loans
    
55
      
-
      
-
      
99
      
154
  
Unallocated
    
15
      
-
      
-
      
(10
)
    
5
  
Total
  
$
22,806
    
$
(78
)
  
$
22
    
$
144
    
$
22,894
  

   
For the three months ended March 31, 2025
  
   
Balance at
December 31, 2024
    
Charge-offs
    
Recoveries
    
Provision
    
Balance at
March 31, 2025
  
Real estate loans:
                              
Residential
  
$
1,940
    
$
-
    
$
-
    
$
1,273
    
$
3,213
  
Commercial
    
9,174
      
(40
)
    
-
      
103
      
9,237
  
Agricultural
    
3,529
      
-
      
-
      
821
      
4,350
  
Construction
    
1,402
      
-
      
-
      
150
      
1,552
  
Consumer
    
1,405
      
(22
)
    
26
      
9
      
1,418
  
Other commercial loans
    
3,699
      
(123
)
    
3
      
(1,547
)
    
2,032
  
Other agricultural loans
    
133
      
-
      
-
      
4
      
137
  
State and political
                                        
subdivision loans
    
61
      
-
      
-
      
(4
)
    
57
  
Unallocated
    
356
      
-
      
-
      
(271
)
    
85
  
Total
  
$
21,699
    
$
(185
)
  
$
29
    
$
538
    
$
22,081
  

The provision for the first three months of 2026 was driven by changes in economic forecasts and the annual update of the loss driver analysis. This update includes revising prepayment and curtailment speeds as well as the historical loss factor. In addition, loss rates are updated to include the most recent completed year of 2025. The provision for 2026 was impacted by the Iran conflict as we adjusted qualitative factors due to the impact this conflict is having on gas and diesel prices, as well as fertilizer prices as the spring growing season starts.

The provision for the first quarter of 2025 was driven by the annual update of the loss driver analysis. This update includes revising prepayment and curtailment speeds. In addition, loss rates are updated to include the most recent completed year of 2024. For residential loans, the historical loss rate increased, while the prepayment speed slowed resulting in an increased provision. For other commercial loans the historical loss rate decreased in the annual update resulting in a decrease in the provision for 2025.

The following table presents the allowance for credit losses – loans and amortized cost basis of loans as of March 31, 2026 and December 31, 2025 (in thousands):
   
Allowance for Credit Losses - Loans
    
Loans
  
March 31, 2026
  
Collectively
evaluated
    
Individually
evaluated
    
Total Allowance
for Credit
Losses - Loans
    
Collectively
evaluated
    
Individually
evaluated
    
Total Loans
  
Real estate loans:
                                    
Residential
  
$
2,682
    
$
59
    
$
2,741
    
$
333,300
    
$
2,766
    
$
336,066
  
Commercial
    
10,364
      
241
      
10,605
      
1,225,728
      
24,172
      
1,249,900
  
Agricultural
    
4,513
      
-
      
4,513
      
342,801
      
2,137
      
344,938
  
Construction
    
721
      
81
      
802
      
82,714
      
503
      
83,217
  
Consumer
    
114
      
922
      
1,036
      
18,669
      
923
      
19,592
  
Other commercial loans
    
2,285
      
530
      
2,815
      
162,807
      
7,821
      
170,628
  
Other agricultural loans
    
194
      
29
      
223
      
29,504
      
500
      
30,004
  
State and political subdivision loans
    
154
      
-
      
154
      
63,877
      
-
      
63,877
  
Unallocated
    
5
      
-
      
5
      
-
      
-
      
-
  
Total
  
$
21,032
    
$
1,862
    
$
22,894
    
$
2,259,400
    
$
38,822
    
$
2,298,222
  

December 31, 2025
                                    
Real estate loans:
                                    
Residential
  
$
3,050
    
$
62
    
$
3,112
    
$
338,600
    
$
2,372
    
$
340,972
  
Commercial
    
9,757
      
260
      
10,017
      
1,193,742
      
24,772
      
1,218,514
  
Agricultural
    
4,841
      
-
      
4,841
      
345,302
      
2,146
      
347,448
  
Construction
    
830
      
86
      
916
      
93,450
      
515
      
93,965
  
Consumer
    
327
      
874
      
1,201
      
87,301
      
909
      
88,210
  
Other commercial loans
    
1,903
      
631
      
2,534
      
171,343
      
7,823
      
179,166
  
Other agricultural loans
    
115
      
-
      
115
      
29,844
      
403
      
30,247
  
State and political subdivision loans
    
55
      
-
      
55
      
52,100
      
-
      
52,100
  
Unallocated
    
15
      
-
      
15
      
-
      
-
      
-
  
Total
  
$
20,893
    
$
1,913
    
$
22,806
    
$
2,311,682
    
$
38,940
    
$
2,350,622
  

Non-performing Loans

Non-performing loans include those loans that are considered nonaccrual, described in more detail below, and all loans past due 90 or more days. Loans are considered for non-accrual status upon reaching 90 days delinquency, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans, or if full payment of principal and interest is not expected. Additionally, if management is made aware of other information including bankruptcy, repossession, death, or legal proceedings, the loan may be placed on non-accrual status. If a loan is 90 days or more past due and is well secured and in the process of collection, it may still be considered accruing.

The following table reflects the non-performing loan receivables, as well as those on non-accrual status as of March 31, 2026 and December 31, 2025, respectively. The balances are presented by class of loan receivable (in thousands):

   
March 31, 2026
    
December 31, 2025
  
   
Nonaccrual
With a
related
allowance
    
Nonaccrual
Without a
related
allowance
    
90 days or
greater
past due
and
accruing
    
Total non-
performing
loans
    
Nonaccrual
With a
related
allowance
    
Nonaccrual
Without a
related
allowance
    
90 days or
greater
past due
and
accruing
    
Total non-
performing
loans
  
Real estate loans:
                                                
Mortgages
  
$
441
    
$
2,824
    
$
-
    
$
3,265
    
$
153
    
$
3,229
    
$
-
    
$
3,382
  
Home Equity
    
-
      
635
      
-
      
635
      
-
      
61
      
151
      
212
  
Commercial
    
2,860
      
19,027
      
60
      
21,947
      
2,860
      
8,637
      
-
      
11,497
  
Agricultural
    
-
      
2,137
      
-
      
2,137
      
-
      
2,145
      
55
      
2,200
  
Construction
    
228
      
275
      
-
      
503
      
233
      
283
      
-
      
516
  
Consumer
    
920
      
-
      
15
      
935
      
770
      
-
      
15
      
785
  
Other commercial loans
    
6,321
      
1,500
      
-
      
7,821
      
6,282
      
1,546
      
8
      
7,836
  
Other agricultural loans
    
98
      
404
      
-
      
502
      
-
      
403
      
-
      
403
  
   
$
10,868
    
$
26,802
    
$
75
    
$
37,745
    
$
10,298
    
$
16,304
    
$
229
    
$
26,831
  
As of March 31, 2026, there were $26.8 million of non-accrual loans that did not have a related allowance for credit losses. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to the realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

The following table presents, by class of loans receivable, the amortized cost basis of collateral-dependent loans and type of collateral as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026
  
Real Estate
    
Business Assets
    
None
    
Total
  
Real estate loans:
                        
Mortgages
  
$
3,265
    
$
-
    
$
-
    
$
3,265
  
Home Equity
    
635
      
-
      
-
      
635
  
Commercial
    
21,887
      
-
      
-
      
21,887
  
Agricultural
    
2,137
      
-
      
-
      
2,137
  
Construction
    
503
      
-
      
-
      
503
  
Consumer
    
-
      
-
      
920
      
920
  
Other commercial loans
    
-
      
7,821
      
-
      
7,821
  
Other agricultural loans
    
-
      
502
      
-
      
502
  
 
  
$
28,427
    
$
8,323
    
$
920
    
$
37,670
  

December 31, 2025
  
Real Estate
    
Business Assets
    
None
    
Total
  
Real estate loans:
                        
Mortgages
  
$
3,382
    
$
-
    
$
-
    
$
3,382
  
Home Equity
    
61
      
-
      
-
      
61
  
Commercial
    
11,497
      
-
      
-
      
11,497
  
Agricultural
    
2,145
      
-
      
-
      
2,145
  
Construction
    
516
      
-
      
-
      
516
  
Consumer
    
-
      
-
      
770
      
770
  
Other commercial loans
    
-
      
7,828
      
-
      
7,828
  
Other agricultural loans
    
-
      
403
      
-
      
403
  
   
$
17,601
    
$
8,231
    
$
770
    
$
26,602
  

Credit Quality Information

For commercial real estate loans, agricultural real estate loans, construction loans, other commercial loans, other agricultural loans, and state and political subdivision loans, management uses a ten grade internal risk rating system to monitor and assess credit quality. The first six grades under the revised system are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The definitions of each rating are defined below:


 •
Pass (Grades 1-6) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.


•
Special Mention (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.


•
Substandard (Grade 8) – This loan grade is in accordance with regulatory guidance and includes 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 (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that 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 (Grade 10) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay the loan as agreed, the Company’s loan rating process includes several layers of internal and external oversight. The Company’s loan officers are responsible for the timely and accurate risk rating of the loans in each of their portfolios at origination and on an ongoing basis under the supervision of management. Commercial, agricultural and state and political relationships over $750,000 in all Bank regions other than the Delaware region are reviewed annually to ensure the appropriateness of the loan grade. In the Delaware region all loan relationships greater than $1,000,000 are reviewed annually to ensure the appropriateness of the loan grade. In addition, the Company engages an external consultant on at least an annual basis to: 1) review a minimum of 50% of the dollar volume of the commercial loan portfolio on an annual basis, 2) a large sample of relationships in aggregate over $1,000,000, 3) selected loan relationships over $750,000 which are over 30 days past due, or classified Special Mention, Substandard, Doubtful, or Loss, and 4) such other loans which management or the consultant deems appropriate.
The following tables represent credit exposures by internally assigned grades, by origination year, as of March 31, 2026 and December 31, 2025 (in thousands):

                                       
Revolving
    
Revolving
        
         
Loans
    
Loans
        
 
 
                                    
Amortized
    
Converted
        
March 31, 2026
 
2026
    
2025
    
2024
    
2023
    
2022
    
Prior
    
Cost Basis
    
to Term
    
Total
  
Commercial real estate
 
                                                    
Risk Rating
 
                                                    
Pass
 
$
59,237
    
$
120,276
    
$
59,068
    
$
112,794
    
$
340,943
    
$
452,669
    
$
33,851
    
$
1,894
    
$
1,180,732
  
Special Mention
 
  
-
      
-
      
-
      
792
      
9,382
      
14,633
      
-
      
-
      
24,807
  
Substandard
 
  
-
      
-
      
5,043
      
1,021
      
21,438
      
14,516
      
2,343
      
-
      
44,361
  
Doubtful
 
  
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
 
$
59,237
    
$
120,276
    
$
64,111
    
$
114,607
    
$
371,763
    
$
481,818
    
$
36,194
    
$
1,894
    
$
1,249,900
  
Current period gross charge-offs
 
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
 
                                                                      
Agricultural real estate
 
                                                                      
Risk Rating
 
                                                                      
Pass
 
$
9,641
    
$
54,397
    
$
29,878
    
$
18,406
    
$
44,942
    
$
152,503
    
$
18,531
    
$
131
    
$
328,429
  
Special Mention
 
  
-
      
45
      
37
      
3,251
      
1,352
      
3,646
      
1,298
      
-
      
9,629
  
Substandard
 
  
-
      
798
      
644
      
-
      
2,050
      
2,669
      
645
      
74
      
6,880
  
Doubtful
 
  
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
 
$
9,641
    
$
55,240
    
$
30,559
    
$
21,657
    
$
48,344
    
$
158,818
    
$
20,474
    
$
205
    
$
344,938
  
Current period gross charge-offs
 
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
 
                                                                      
Construction
 
                                  

                                 
Risk Rating
 
                                                                      
Pass
 
$
12,021
    
$
29,501
    
$
15,620
    
$
5,976
    
$
6,166
    
$
-
    
$
5,333
    
$
-
    
$
74,617
  
Special Mention
 
  
-
      
-
      
-
      
-
      
204
      
2,939
      
-
      
-
      
3,143
  
Substandard
 
  
-
      
-
      
-
      
789
      
4,393
      
275
      
-
      
-
      
5,457
  
Doubtful
 
  
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
 
$
12,021
    
$
29,501
    
$
15,620
    
$
6,765
    
$
10,763
    
$
 3,214
    
$
5,333
    
$
-
    
$
83,217
  
Current period gross charge-offs
 
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
 
                                                                      
Other commercial loans
 
                                  

                                 
Risk Rating
 
                                                                      
Pass
 
$
1,725
    
$
30,176
    
$
26,349
    
$
17,333
    
$
4,611
    
$
8,830
    
$
69,632
    
$
219
    
$
158,875
  
Special Mention
 
  
-
      
-
      
-
      
-
      
-
      
70
      
3,290
      
-
      
3,360
  
Substandard
 
  
-
      
-
      
113
      
-
      
3,925
      
700
      
2,147
      
1,443
      
8,328
  
Doubtful
 
  
-
      
-
      
-
      
-
      
-
      
-
      
63
      
2
      
65
  
Total
 
$
1,725
    
$
30,176
    
$
26,462
    
$
17,333
    
$
8,536
    
$
9,600
    
$
75,132
    
$
1,664
    
$
170,628
  
Current period gross charge-offs
 
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
23
    
$
42
    
$
-
    
$
65
  
 
 
                                                                      
Other agricultural loans
 
                                  

                                 
Risk Rating
 
                                                                      
Pass
 
$
6,326
    
$
5,269
    
$
2,419
    
$
1,290
    
$
415
    
$
1,205
    
$
10,452
    
$
-
    
$
27,376
  
Special Mention
 
  
-
      
-
      
913
      
12
      
-
      
-
      
748
      
-
      
1,673
  
Substandard
 
  
-
      
-
      
-
      
292
      
434
      
-
      
229
      
-
      
955
  
Doubtful
 
  
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
 
$
6,326
    
$
5,269
    
$
3,332
    
$
1,594
    
$
849
    
$
1,205
    
$
11,429
    
$
-
    
$
30,004
  
Current period gross charge-offs
 
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
 
                                                                      
State and political subdivision loans
 
                                  
-
                                  
Risk Rating
 
                                                                      
Pass
 
$
11,047
    
$
2,961
    
$
-
    
$
1,275
    
$
12,706
    
$
35,732
    
$
156
    
$
-
    
$
63,877
  
Special Mention
 
  
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
 
  
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Doubtful
 
  
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
 
$
11,047
    
$
2,961
    
$
-
    
$
1,275
    
$
12,706
    
$
35,732
    
$
156
    
$
-
    
$
63,877
  
Current period gross charge-offs
 
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
 
 
                                                                      
Total
 
                                  

                                 
Risk Rating
 
                                                                      
Pass
 
$
99,997
    
$
242,580
    
$
133,334
    
$
157,074
    
$
409,783
    
$
650,939
    
$
137,955
    
$
2,244
    
$
1,833,906
  
Special Mention
 
  
-
      
45
      
950
      
4,055
      
10,938
      
21,288
      
5,336
      
-
      
42,612
  
Substandard
 
  
-
      
798
      
5,800
      
2,102
      
32,240
      
18,160
      
5,364
      
1,517
      
65,981
  
Doubtful
 
  
-
      
-
      
-
      
-
      
-
      
-
      
63
      
2
      
65
  
Total
 
$
99,997
    
$
243,423
    
$
140,084
    
$
163,231
    
$
452,961
    
$
690,387
    
$
148,718
    
$
3,763
    
$
1,942,564
  
Total current period gross charge-offs
   $
 -

$
 -

$
 -

$
 -

$
 -

$
 23

$
 42

$
 -

$
 65  
                                       
Revolving
    
Revolving
        
         
Loans
    
Loans
        
 
                                      
Amortized
    
Converted
        
December 31, 2025
  
2025
    
2024
    
2023
    
2022
    
2021
    
Prior
    
Cost Basis
    
to Term
    
Total
  
Commercial real estate
                                                      
Risk Rating
                                                      
Pass
  
$
127,490
    
$
59,760
    
$
128,989
    
$
329,694
    
$
172,617
    
$
294,237
    
$
34,709
    
$
1,971
    
$
1,149,467
  
Special Mention
    
-
      
5,042
      
797
      
5,784
      
8,770
      
7,208
      
733
      
-
      
28,334
  
Substandard
    
-
      
-
      
1,021
      
24,582
      
3,024
      
9,772
      
2,314
      
-
      
40,713
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
127,490
    
$
64,802
    
$
130,807
    
$
360,060
    
$
184,411
    
$
311,217
    
$
37,756
    
$
1,971
    
$
1,218,514
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
40
    
$
-
    
$
-
    
$
40
  
 
                                                                        
Agricultural real estate
                                                                        
Risk Rating
                                                                        
Pass
  
$
54,278
    
$
30,648
    
$
18,810
    
$
47,254
    
$
20,747
    
$
139,424
    
$
18,558
    
$
131
    
$
329,850
  
Special Mention
    
55
      
40
      
3,276
      
1,384
      
1,731
      
1,893
      
1,723
      
-
      
10,102
  
Substandard
    
1,297
      
667
      
-
      
2,052
      
657
      
2,103
      
645
      
75
      
7,496
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
55,630
    
$
31,355
    
$
22,086
    
$
50,690
    
$
23,135
    
$
143,420
    
$
20,926
    
$
206
    
$
347,448
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Construction
                                    

                                 
Risk Rating
                                                                        
Pass
  
$
30,394
    
$
15,456
    
$
8,490
    
$
25,772
    
$
-
    
$
-
    
$
5,215
    
$
-
    
$
85,327
  
Special Mention
    
-
      
-
      
-
      
206
      
2,943
      
-
      
-
      
-
      
3,149
  
Substandard
    
-
      
-
      
789
      
4,417
      
283
      
-
      
-
      
-
      
5,489
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
30,394
    
$
15,456
    
$
9,279
    
$
30,395
    
$
3,226
    
$
-
    
$
5,215
    
$
-
    
$
93,965
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Other commercial loans
                                    

                                 
Risk Rating
                                                                        
Pass
  
$
33,300
    
$
27,244
    
$
18,039
    
$
4,938
    
$
6,098
    
$
3,819
    
$
74,628
    
$
232
    
$
168,298
  
Special Mention
    
-
      
-
      
-
      
-
      
-
      
-
      
2,442
      
-
      
2,442
  
Substandard
    
-
      
117
      
-
      
1,784
      
40
      
714
      
4,257
      
1,443
      
8,355
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
66
      
5
      
71
  
Total
  
$
33,300
    
$
27,361
    
$
18,039
    
$
6,722
    
$
6,138
    
$
4,533
    
$
81,393
    
$
1,680
    
$
179,166
  
Current period gross charge-offs
  
$
-
    
$
49
    
$
-
    
$
-
    
$
-
    
$
63
    
$
379
    
$
-
    
$
491
  
                                                                         
Other agricultural loans
                                    

                                 
Risk Rating
                                                                        
Pass
  
$
5,677
    
$
3,520
    
$
1,440
    
$
408
    
$
1,602
    
$
288
    
$
14,761
    
$
-
    
$
27,696
  
Special Mention
    
-
      
936
      
15
      
-
      
-
      
-
      
639
      
-
      
1,590
  
Substandard
    
-
      
-
      
294
      
438
      
-
      
-
      
229
      
-
      
961
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
5,677
    
$
4,456
    
$
1,749
    
$
846
    
$
1,602
    
$
288
    
$
15,629
    
$
-
    
$
30,247
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
State and political subdivision loans
                                    

                                 
Risk Rating
                                                                        
Pass
  
$
1,504
    
$
27
    
$
1,291
    
$
12,737
    
$
9,932
    
$
26,509
    
$
100
    
$
-
    
$
52,100
  
Special Mention
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Substandard
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Total
  
$
1,504
    
$
27
    
$
1,291
    
$
12,737
    
$
9,932
    
$
26,509
    
$
100
    
$
-
    
$
52,100
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Total
                                    

                                 
Risk Rating
                                                                        
Pass
  
$
252,643
    
$
136,655
    
$
177,059
    
$
420,803
    
$
210,996
    
$
464,277
    
$
147,971
    
$
2,334
    
$
1,812,738
  
Special Mention
    
55
      
6,018
      
4,088
      
7,374
      
13,444
      
9,101
      
5,537
      
-
      
45,617
  
Substandard
    
1,297
      
784
      
2,104
      
33,273
      
4,004
      
12,589
      
7,445
      
1,518
      
63,014
  
Doubtful
    
-
      
-
      
-
      
-
      
-
      
-
      
66
      
5
      
71
  
Total
  
$
253,995
    
$
143,457
    
$
183,251
    
$
461,450
    
$
228,444
    
$
485,967
    
$
161,019
    
$
3,857
    
$
1,921,440
  
For residential real estate mortgage loans, home equity loans, and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail above, and all loans past due 90 or more days and still accruing. The following tables present the recorded investment in those loan classes based on payment activity, by origination year, as of March 31, 2026 and December 31, 2025 (in thousands):

                                       
Revolving
    
Revolving
        
         
Loans
    
Loans
        
                                       
Amortized
    
Converted
        
March 31, 2026
  
2026
    
2025
    
2024
    
2023
    
2022
    
Prior
    
Cost Basis
    
to Term
    
Total
  
Residential real estate
                                                      
Payment Performance
                                                      
Performing
  
$
1,509
    
$
14,110
    
$
13,060
    
$
21,342
    
$
80,576
    
$
150,124
    
$
-
    
$
-
    
$
280,721
  
Nonperforming
    
-
      
-
      
-
      
-
      
1,043
      
2,222
      
-
      
-
      
3,265
  
Total
  
$
1,509
    
$
14,110
    
$
13,060
    
$
21,342
    
$
81,619
    
$
152,346
    
$
-
    
$
-
    
$
283,986
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Home equity
                                                                        
Payment Performance
                                                                        
Performing
  
$
146
    
$
2,435
    
$
2,300
    
$
2,415
    
$
1,638
    
$
7,526
    
$
34,699
    
$
286
    
$
51,445
  
Nonperforming
    
-
      
60
      
-
      
38
      
-
      
537
      
-
      
-
      
635
  
Total
  
$
146
    
$
2,495
    
$
2,300
    
$
2,453
    
$
1,638
    
$
8,063
    
$
34,699
    
$
286
    
$
52,080
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Consumer
                                                                        
Payment Performance
                                                                        
Performing
  
$
432
    
$
1,817
    
$
957
    
$
288
    
$
314
    
$
2,638
    
$
12,211
    
$
-
    
$
18,657
  
Nonperforming
    
-
      
-
      
11
      
3
      
-
      
921
      
-
      
-
      
935
  
Total
  
$
432
    
$
1,817
    
$
968
    
$
291
    
$
314
    
$
3,559
    
$
12,211
    
$
-
    
$
19,592
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
1
    
$
4
    
$
8
    
$
-
    
$
13
  
                                                                         
Total
                                                                        
Payment Performance
                                                                        
Performing
  
$
2,087
    
$
18,362
    
$
16,317
    
$
24,045
    
$
82,528
    
$
160,287
    
$
46,910
    
$
286
    
$
350,822
  
Nonperforming
    
-
      
60
      
11
      
41
      
1,043
      
3,681
      
-
      
-
      
4,836
  
Total
  
$
2,087
    
$
18,422
    
$
16,328
    
$
24,086
    
$
83,571
    
$
163,968
    
$
46,910
    
$
286
    
$
355,658
  

                                        Revolving    
Revolving
    

 
                                        Loans     Loans        
                                        Amortized     Converted        
December 31, 2025
  
2025
    
2024
    
2023
    
2022
    
2021
    
Prior
    
Cost Basis
    
to Term
    
Total
  
Residential real estate
                                                      
Payment Performance
                                                      
Performing
  
$
13,909
    
$
13,209
    
$
23,135
    
$
81,239
    
$
41,842
    
$
111,948
    
$
-
    
$
-
    
$
285,282
  
Nonperforming
    
-
      
-
      
-
      
1,057
      
1,132
      
1,193
      
-
      
-
      
3,382
  
Total
  
$
13,909
    
$
13,209
    
$
23,135
    
$
82,296
    
$
42,974
    
$
113,141
    
$
-
    
$
-
    
$
288,664
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Home equity
                                                                        
Payment Performance
                                                                        
Performing
  
$
2,854
    
$
2,528
    
$
2,533
    
$
1,727
    
$
1,150
    
$
6,918
    
$
34,101
    
$
286
    
$
52,097
  
Nonperforming
    
63
      
-
       18
      
-
      
-
      
110
      
20
      
-
      
211
  
Total
  
$
2,917
    
$
2,528
    
$
2,551
    
$
1,727
    
$
1,150
    
$
7,028
    
$
34,121
    
$
286
    
$
52,308
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
                                                                         
Consumer
                                                                        
Payment Performance
                                                                        
Performing
  
$
1,934
    
$
1,050
    
$
373
    
$
354
    
$
412
    
$
2,577
    
$
80,725
    
$
-
    
$
87,425
  
Nonperforming
    
-
       10
      
-
      
-
      
11
      
764
       -      
-
      
785
  
Total
  
$
1,934
    
$
1,060
    
$
373
    
$
354
    
$
423
    
$
3,341
    
$
80,725
    
$
-
    
$
88,210
  
Aging Analysis of Past Due Loan Receivables

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 table includes an aging analysis of the recorded investment of past due loan receivables as of March 31, 2026 and December 31, 2025 (in thousands):

                                 
Total
  
   
30-59 Days
    
60-89 Days
    
90 Days
    
Total Past
          
Loans
  
March 31, 2026
  
Past Due
    
Past Due
    
Or Greater
    
Due
    
Current
    
Receivables
  
Real estate loans:
                                    
Mortgages
  
$
1,786
    
$
283
    
$
1,939
    
$
4,008
    
$
279,978
    
$
283,986
  
Home Equity
    
546
      
-
      
124
      
670
      
51,410
      
52,080
  
Commercial
    
1,247
      
2,410
      
19,593
      
23,250
      
1,226,650
      
1,249,900
  
Agricultural
    
449
      
159
      
1,927
      
2,535
      
342,403
      
344,938
  
Construction
    
670
      
-
      
503
      
1,173
      
82,044
      
83,217
  
Consumer
    
39
      
456
      
935
      
1,430
      
18,162
      
19,592
  
Other commercial loans
    
115
      
1
      
1,825
      
1,941
      
168,687
      
170,628
  
Other agricultural loans
    
258
      
1
      
501
      
760
      
29,244
      
30,004
  
State and political subdivision loans
    
-
      
-
      
-
      
-
      
63,877
      
63,877
  
 
                                                
Total
  
$
5,110
    
$
3,310
    
$
27,347
    
$
35,767
    
$
2,262,455
    
$
2,298,222
  
 
                                                
Loans considered non-accrual
  
$
757
    
$
606
    
$
27,272
    
$
28,635
    
$
9,035
    
$
37,670
  
Loans still accruing
    
4,353
      
2,704
      
75
      
7,132
      
2,253,420
      
2,260,552
  
Total
  
$
5,110
    
$
3,310
    
$
27,347
    
$
35,767
    
$
2,262,455
    
$
2,298,222
  

December 31, 2025
                                    
Real estate loans:
                                    
Mortgages
  
$
2,737
    
$
1,073
    
$
1,675
    
$
5,485
    
$
283,179
    
$
288,664
  
Home Equity
    
146
      
17
      
181
      
344
      
51,964
      
52,308
  
Commercial
    
1,733
      
2,695
      
9,871
      
14,299
      
1,204,215
      
1,218,514
  
Agricultural
    
1,020
      
158
      
1,982
      
3,160
      
344,288
      
347,448
  
Construction
    
-
      
233
      
283
      
516
      
93,449
      
93,965
  
Consumer
    
161
      
148
      
785
      
1,094
      
87,116
      
88,210
  
Other commercial loans
    
256
      
49
      
7,500
      
7,805
      
171,361
      
179,166
  
Other agricultural loans
    
17
      
-
      
403
      
420
      
29,827
      
30,247
  
State and political subdivision loans
    
-
      
-
      
-
      
-
      
52,100
      
52,100
  
 
                                                
Total
  
$
6,070
    
$
4,373
    
$
22,680
    
$
33,123
    
$
2,317,499
    
$
2,350,622
  
 
                                                
Loans considered non-accrual
  
$
396
    
$
778
    
$
22,451
    
$
23,625
    
$
2,977
    
$
26,602
  
Loans still accruing
    
5,674
      
3,595
      
229
      
9,498
      
2,314,522
      
2,324,020
  
Total
  
$
6,070
    
$
4,373
    
$
22,680
    
$
33,123
    
$
2,317,499
    
$
2,350,622
  

Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.
The following table shows the amortized cost basis by class of loans receivable, information regarding accrual and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025 (dollars in thousands).

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
  
   
Three months ended March 31, 2026
  
   
Number of loans
    
Amortized Cost
Basis
    
% of Total Class of Financing Receivable
  
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
  
Real estate loans:
                  
Commercial
    
1
    
$
2,207
      
0.18
%
Total
    
1
    
$
2,207
          

Non-Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
  
Real estate loans:
              
Commercial
    
1
    
$
250
      
0.02
%
Other commercial loans
    
2
      
5,818
      
3.41
%
Total
    
3
    
$
6,068
          

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
  
   
Three months ended March 31, 2025
  
   
Number of loans
    
Amortized Cost
Basis
    
% of Total Class of Financing Receivable
  
Non-Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
  
Other commercial loans
    
1
    
$
190
      
0.14
%
Total
    
1
    
$
190
          

The following table shows, by class of loans receivable, information regarding the financial effect on accrual and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025:

Three months ended March 31, 2026
    
Term Extension
Loan Type
  
Number of loans
  
Financial Effect
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
    
Real estate loans:
         
Commercial
    
1
  
Extended the term of the loan 6 months
Total
    
1
    

Non-Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
Real estate loans:
  
 
Commercial
    
1
  
Extended term to 30 years
Other commercial loans
    
2
  
Extended the term five years
Total
    
3
  

Three months ended March 31, 2025
    
Term Extension
Loan Type
  
Number of loans
  
Financial Effect
Non-Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
Other commercial loans
    
1
  
Extended the loan maturity 10 years as termed out or line of credit
Total
    
1
    

There were no accrual or nonaccrual modified loans to borrowers experiencing financial difficulty for which there were payment defaults after the modification date for the three months ended March 31, 2026.

The following presents, by class of loans, the amortized cost and payment status of accruing and nonaccrual modified loans to borrowers experiencing financial difficulty at March 31, 2026 (in thousands):

 
    
March 31, 2026
  
 
          
30-89 Days
    
90 Days
        
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
    
Current
    
Past Due
    
Or Greater
    
Total
  
Real estate loans:
                          
Commercial
    
$
2,207
      
-
      
-
      
2,207
  
 
Total
   $
 2,207     $
-
     $
-
     $
2,207
  
Non-Accruing Modified Loans to Borrowers Experiencing Financial Difficulty
                  
Real estate loans:
                                  
Commercial
    
$
250
      
-
      
-
    
$
250
  
Other commercial loans
      
5,818
      
-
      
-
      
5,818
  
 
Total
   $
6,068
     $
-
     $
-
     $
6,068
  

Foreclosed Assets Held For Sale

Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell, and are included in other assets on the Consolidated Balance Sheet. As of March 31, 2026 and December 31, 2025, included within other assets are $2,358,000 of foreclosed assets. As of March 31, 2026, there are no consumer residential mortgages included within foreclosed assets. As of March 31, 2026, the Company had initiated formal foreclosure proceedings on $1,227,000 of residential mortgage loans, the collateral properties of which have not yet been transferred into foreclosed assets.