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LOANS AND ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 31, 2025
Credit Loss [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES LOANS AND ALLOWANCE FOR CREDIT LOSSES
The composition of the loan portfolio, net of deferred loan fees as of December 31, 2025 and 2024 is summarized as follows (in thousands):
 20252024
Commercial and industrial$324,185 $299,521 
Commercial mortgages:
Construction120,418 94,943 
Owner occupied commercial real estate178,620 142,279 
Non-owner occupied commercial real estate1,110,689 979,782 
Residential mortgages286,885 274,979 
Consumer loans:
Home equity lines and loans109,723 93,220 
Indirect consumer loans132,699 178,118 
Direct consumer loans6,342 8,577 
Total loans, net of deferred loan fees2,269,561 2,071,419 
Allowance for credit losses(24,209)(21,388)
Loans, net of allowance for credit losses$2,245,352 $2,050,031 
The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above.
Accrued interest receivable on loans totaled $8.9 million as of December 31, 2025 and $8.0 million as of December 31, 2024. Accrued interest receivable on loans is included in the accrued interest receivable and other assets line item on the Corporation's Consolidated Balance Sheets, and is excluded from the amortized cost basis of loans and estimate of the allowance for credit losses, as presented in this Note. Deferred loan costs, net of deferred loan fees, included in the amortized cost basis of loans as presented in the table above, totaled $4.1 million as of December 31, 2025 and $4.7 million as of December 31, 2024.
Owner occupied commercial real estate and non-owner occupied commercial real estate were previously presented as a combined loan category, "commercial mortgages, other". Prior period information included in this Note has been disaggregated to reflect these standalone categories. The previously presented commercial mortgages, other loan category totaled $1.29 billion and $1.12 billion as of December 31, 2025 and December 31, 2024, respectively.
The Corporation had no residential mortgages held for sale as of December 31, 2025 and December 31, 2024. When the Corporation has residential mortgages classified as held for sale, they are not included in the table above. During the year ended December 31, 2025, the Corporation transferred commercial credit card balances from loans held for investment to loans held for sale, following management's decision to pursue a sale of its commercial credit card receivables. These balances were previously included in the commercial and industrial loan category, as presented in the table above, and are included in the loans held for sale line item on the Corporation's Consolidated Balance Sheets. As of December 31, 2025, loans held for sale included $2.1 million in commercial credit card balances.
Residential mortgage and home equity loans totaling $255.1 million as of December 31, 2025 and $244.6 million as of December 31, 2024 were pledged under a blanket collateral agreement for the Corporation's line of credit with the FHLBNY.
The following tables present the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2025 and 2024 (in thousands):
 December 31, 2025
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2025$4,520 $11,214 $2,259 $3,395 $21,388 
Charge-offs:(797)(6)— (1,653)(2,456)
Recoveries:10 4 19 551 584 
Net (charge-offs) recoveries(787)(2)19 (1,102)(1,872)
Provision (1)
791 3,151 510 241 4,693 
Ending balance, December 31, 2025$4,524 $14,363 $2,788 $2,534 $24,209 
(1) Additional provision related to off-balance sheet exposure was a credit of $256 thousand for the year ended December 31, 2025.
 December 31, 2024
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2024$5,055 $12,026 $2,194 $3,242 $22,517 
Charge-offs:(302)— (21)(1,550)(1,873)
Recoveries:128 4 62 519 713 
Net recoveries (charge-offs)(174)4 41 (1,031)(1,160)
Provision (1)
(361)(816)24 1,184 31 
Ending balance, December 31, 2024$4,520 $11,214 $2,259 $3,395 $21,388 
(1) Additional provision related to off-balance sheet exposure was a credit of $77 thousand for the year ended December 31, 2024.

Unfunded Commitments
The allowance for credit losses on unfunded commitments represents amounts held against credit exposures which are not represented on the Consolidated Balance Sheets. The allowance is recognized as a liability, a component of other liabilities on the Consolidated Balance Sheets, with adjustments to the allowance recognized in the provision for credit losses line item on the Consolidated Statements of Income.

The following table presents the activity in the allowance for credit losses on unfunded commitments for the years ended December 31, 2025 and 2024:
For the Years Ended December 31,
Allowance for credit losses on unfunded commitments20252024
Beginning balance$842 $919 
Provision (credit) for credit losses on unfunded commitments (256)(77)
Ending balance$586 $842 

The following table presents the provision for credit losses on loans and unfunded commitments for the years ended December 31, 2025 and 2024 (in thousands):
For the Years Ended December 31,
Provision for credit losses20252024
Provision for credit losses on loans$4,693 $31 
Provision (credit) for credit losses on unfunded commitments (256)(77)
Total provision (credit) for credit losses$4,437 $(46)

The following tables present the balance in the allowance for credit losses and the amortized cost basis in loans by portfolio segment and based on analysis status as of December 31, 2025 and 2024 (in thousands):


 December 31, 2025
Allowance for credit lossesCommercial
and
Industrial		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually analyzed $641 $506 $— $— $1,147 
Collectively analyzed 3,883 13,857 2,788 2,534 23,062 
Total ending allowance balance$4,524 $14,363 $2,788 $2,534 $24,209 
 December 31, 2024
Allowance for credit lossesCommercial
and
Industrial		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually analyzed$1,446 $106 $— $— $1,552 
Collectively analyzed3,074 11,108 2,259 3,395 19,836 
Total ending allowance balance$4,520 $11,214 $2,259 $3,395 $21,388 

 December 31, 2025
LoansCommercial
and
Industrial		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually analyzed$693 $3,167 $— $327 $4,187 
Loans collectively analyzed323,492 1,406,560 286,885 248,437 2,265,374 
Total ending loans balance$324,185 $1,409,727 $286,885 $248,764 $2,269,561 

 December 31, 2024
LoansCommercial
and
Industrial		Commercial MortgagesResidential MortgagesConsumer LoansTotal
Loans individually analyzed$1,512 $4,959 $— $— $6,471 
Loans collectively analyzed298,009 1,212,045 274,979 279,915 2,064,948 
Total ending loans balance$299,521 $1,217,004 $274,979 $279,915 $2,071,419 


Modifications to Loans Made to Borrowers Experiencing Financial Difficulty
The Corporation may occasionally make modifications to loans where the borrower is considered to be experiencing financial difficulty, and which may require disclosure in accordance with Financial Instruments-Credit Losses (Topic 326)-Troubled Debt Restructurings and Vintage Disclosures. Types of modifications considered under ASU 2022-02 include principal reductions, interest rate reductions, term extensions, significant payment delays, or a combination thereof.

The following tables summarize the amortized cost basis of loans modified during the years ended December 31, 2025 and 2024 (in thousands):
December 31, 2025
Loans modified under ASU 2022-02Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Commercial mortgages:
Non-owner occupied commercial real estate$— $— $950 $3,408 $446 $4,804 0.43 %
Residential mortgages— — — 170 — 170 0.06 %
Total$— $— $950 $3,578 $446 $4,974 
(1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.
December 31, 2024
Loans modified under ASU 2022-02Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Commercial and industrial$— $— $384 $— $— $384 0.13 %
Commercial mortgages:— 
Owner occupied commercial real estate— — — 376 — 376 0.26 %
Residential mortgages— — — 440 — 440 0.16 %
Total$— $— $384 $816 $— $1,200 
(1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024:

December 31, 2025
Effect of loan modifications under ASU 2022-02Principal reduction
(in thousands)		Weighted average interest rate reduction (%)Weighted average term extension
(in months)		Weighted-average payment delay
(in months)
Commercial mortgages:
Non-owner occupied commercial real estate$——%9 months6 months
Residential mortgages$——%0 months6 months

December 31, 2024
Effect of loan modifications under ASU 2022-02Principal Reduction (in thousands)Weighted average interest rate reduction (%)Weighted average term extension
(in months)		Weighted average payment delay
(in months)
Commercial and industrial——%60 months0 months
Commercial mortgages:
Owner occupied commercial real estate——%0 months101 months
Residential mortgages——%0 months6 months

The Corporation closely monitors the performance of loans that have previously been modified under ASU 2022-02 in order to gauge the effectiveness of modifications, and to determine the degree to which borrowers continue to demonstrate financial weakness following modification. The following tables present the performance of such loans that were modified in the twelve month periods preceding December 31, 2025 and 2024 (in thousands):

Twelve Months Ended December 31, 2025
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past DueTotal
Commercial mortgages:
Non-owner occupied commercial real estate— — — 4,804 4,804 
Residential mortgages (1)
— — — 170 170 
Total$— $— $— $4,974 $4,974 
Twelve Months Ended December 31, 2024
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past DueTotal
Commercial and industrial$— $— $— $384 $384 
Commercial mortgages:
Owner occupied commercial real estate— — — 376 376 
Residential mortgages— — 440 — 440 
Total$— $— $440 $760 $1,200 

The Corporation had no outstanding commitments to lend additional amounts to borrowers for which modifications subject to ASU 2022-02 were made during the years ended December 31, 2025 and 2024.

Collateral-Dependent Individually Analyzed Loans
As of December 31, 2025 and 2024, the amortized cost basis of individually analyzed loans was $4.2 million, of which $2.2 million were considered collateral-dependent, and as of December 31, 2024, the amortized cost basis of individually analyzed loans was $6.5 million, of which $5.1 million were considered collateral-dependent. For collateral-dependent loans where the borrower is experiencing financial difficulty and repayment is likely to be substantially provided through the sale or operation of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date.
Certain assets held as collateral may be exposed to future deterioration in fair value, particularly due to changes in real estate markets or usage. The Corporation closely monitors trends in real estate values throughout its market area to determine whether collateral values, after appropriate discounting, are likely to be sufficient to extinguish existing borrower indebtedness.

The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral-dependent as of December 31, 2025 and 2024 (in thousands):

December 31, 2025December 31, 2024
Amortized Cost BasisRelated AllowanceAmortized Cost BasisRelated Allowance
Commercial and industrial (2)
$50 $— $130 $65 
Commercial mortgages:
Owner occupied commercial real estate (1) (2)
629 4 1,377 15 
Non-owner occupied commercial real estate (1)
1,167 199 3,582 91 
Consumer loans:
Home equity lines and loans (3)
327 — — — 
Total$2,173 $203 $5,089 $171 
(1) Secured by commercial real estate
(2) Secured by business assets
(3) Secured by residential real estate
The following table presents the amortized cost basis of nonaccrual loans without an associated allocation in the allowance for credit losses, total nonaccrual loans, and loans pasts due 90 days or greater which were still accruing, by class of loans, as of December 31, 2025 and 2024 (in thousands):

Nonaccrual with No Allowance for Credit LossesNonaccrualLoans Past Due 90 Days or More and Still Accruing
202520242025202420252024
Commercial and industrial$136 $76 $779 $1,534 $17 $23 
Commercial mortgages:
Owner occupied commercial real estate625 1,362 629 1,377 — — 
Non-owner occupied commercial real estate23 2,619 2,538 3,582 — — 
Residential mortgages1,753 1,372 1,753 1,372 — — 
Consumer loans:
Home equity lines and loans1,005 613 1,005 613 — — 
Indirect consumer loans1,117 474 1,117 474 — — 
Direct consumer loans87 2 87 2 — — 
Total$4,746 $6,518 $7,908 $8,954 $17 $23 

The following tables present the aging of the amortized cost basis in loans as of December 31, 2025 and 2024 (in thousands):

December 31, 2025
30 - 59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueTotal Past DueLoans Not Past DueTotal
Commercial and industrial$817 $55 $36 $908 $323,277 $324,185 
Commercial mortgages:
Construction— — — — 120,418 120,418 
Owner occupied commercial real estate105 — 96 201 178,419 178,620 
Non-owner occupied commercial real estate— — 2,538 2,538 1,108,151 1,110,689 
Residential mortgages1,277 693 901 2,871 284,014 286,885 
Consumer loans:
Home equity lines and loans747 26 249 1,022 108,701 109,723 
Indirect consumer loans2,312 656 616 3,584 129,115 132,699 
Direct consumer loans23 16 5 44 6,298 6,342 
Total$5,281 $1,446 $4,441 $11,168 $2,258,393 $2,269,561 
December 31, 2024
30 - 59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueTotal Past DueLoans Not Past DueTotal
Commercial and industrial$140 $201 $702 $1,043 $298,478 $299,521 
Commercial mortgages:
Construction— — — — 94,943 94,943 
Owner occupied commercial real estate82 — 96 178 142,101 142,279 
Non-owner occupied commercial real estate950 — 3,162 4,112 975,670 979,782 
Residential mortgages1,529 662 696 2,887 272,092 274,979 
Consumer loans:
Home equity lines and loans231 — 364 595 92,625 93,220 
Indirect consumer loans2,101 719 235 3,055 175,063 178,118 
Direct consumer loans14 6 1 21 8,556 8,577 
Total$5,047 $1,588 $5,256 $11,891 $2,059,528 $2,071,419 



Credit Quality Indicators

The Corporation establishes a risk rating at origination for all commercial loans. The primary factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service its debt and affirm the risk ratings for the loans at least annually.

For retail loans, which include residential mortgages, indirect and direct consumer loans, and home equity lines and loans, once a loan is appropriately approved and closed, the Corporation evaluates credit quality based upon loan repayment. Retail loans that have been modified subject to ASU 2022-02, but are otherwise performing, are assigned a risk rating of Special Mention, as defined below. Retail loans are not rated until they become 90 days past due or are modified under ASU 2022-02.

The Corporation uses its risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly.  The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines):

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful 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.

Commercial loans not meeting the criteria above to be considered criticized or classified are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans performing under terms of the loan notes.
Based on the analyses performed as of December 31, 2025, the risk category of the amortized cost basis of loans by class of loans and vintage, as well as the gross charge-offs by loan class and vintage for the period, are as follows (in thousands):
Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20252024202320222021Prior
Commercial and industrial
Pass$52,419 $25,663 $22,131 $25,382 $11,367 $15,765 $135,641 $2,726 $291,094 
Special Mention1,616 31 496 2,163 1,412 6,852 13,139 3,631 29,340 
Substandard— 317 13 — 42 — 2,645 75 3,092 
Doubtful— — — — — 584 — 75 659 
Total54,035 26,011 22,640 27,545 12,821 23,201 151,425 6,507 324,185 
Gross charge-offs— 19 — — 772 — 6 — 797 
Construction
Pass38,266 29,670 33,259 14,754 1,213 1,323 1,933 — 120,418 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total38,266 29,670 33,259 14,754 1,213 1,323 1,933 — 120,418 
Gross charge-offs— — — — — — — — — 
Owner occupied commercial real estate
Pass48,350 23,186 17,531 23,050 12,966 31,441 590 39 157,153 
Special Mention— — 4,681 1,646 6,912 3,567 2,000 — 18,806 
Substandard1,207 — 96 468 — 886 — — 2,657 
Doubtful— — — — — 4 — — 4 
Total49,557 23,186 22,308 25,164 19,878 35,898 2,590 39 178,620 
Gross charge-offs— — — — — — — — — 
Non-owner occupied commercial real estate
Pass162,357 102,759 99,585 242,886 133,385 279,901 9,102 726 1,030,701 
Special Mention— — 15,301 18,852 13,006 27,806 — — 74,965 
Substandard2,039 — 2,515 — — 469 — — 5,023 
Doubtful— — — — — — — — — 
Total164,396 102,759 117,401 261,738 146,391 308,176 9,102 726 1,110,689 
Gross charge-offs— — — — — 6 — — 6 
Residential mortgages
Not rated38,892 24,307 17,590 50,866 50,380 102,421 — — 284,456 
Special Mention— — — — 426 — — — 426 
Substandard— — 69 295 309 1,330 — — 2,003 
Total38,892 24,307 17,659 51,161 51,115 103,751 — — 286,885 
Gross charge-offs— — — — — — — — — 
Home equity lines and loans
Not rated7,882 12,004 8,849 11,138 4,113 10,124 53,219 1,275 108,604 
Special Mention— — — 114 — — — — 114 
Substandard— — 22 207 — 192 112 472 1,005 
Total7,882 12,004 8,871 11,459 4,113 10,316 53,331 1,747 109,723 
Gross charge-offs— — — — — — — — — 
Indirect consumer
Not rated23,872 26,326 33,271 39,644 6,197 2,207 — — 131,517 
Substandard82 395 386 249 26 44 — — 1,182 
Total23,954 26,721 33,657 39,893 6,223 2,251 — — 132,699 
Gross charge-offs12 345 641 358 121 78 — — 1,555 
Direct consumer
Not rated1,591 1,339 750 460 60 154 1,969 4 6,327 
Substandard2 — — 3 — — 10 — 15 
Total1,593 1,339 750 463 60 154 1,979 4 6,342 
Gross charge-offs12 27 23 12 3 — 21 — 98 
Total loans$378,575 $245,997 $256,545 $432,177 $241,814 $485,070 $220,360 $9,023 $2,269,561 
Total gross charge-offs$24 $391 $664 $370 $896 $84 $27 $— $2,456 
Based on the analyses performed as of December 31, 2024, the risk category of the amortized cost basis of loans by class of loans and vintage, as well as the gross charge-offs by loan class and vintage for the period, are as follows (in thousands):
Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20242023202220212020Prior
Commercial and industrial
Pass$44,130 $32,157 $34,862 $16,787 $8,326 $27,452 $108,819 $1,380 $273,913 
Special Mention810 262 3,933 — 4,390 3,673 10,203 62 23,333 
Substandard99 — 8 733 30 — 379 318 1,567 
Doubtful21 — — — — 687 — — 708 
Total45,060 32,419 38,803 17,520 12,746 31,812 119,401 1,760 299,521 
Gross charge-offs— 84 200 6 — — 12 — 302 
Construction
Pass19,344 46,954 17,568 9,058 — 1,536 483 — 94,943 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total19,344 46,954 17,568 9,058 — 1,536 483 — 94,943 
Gross charge-offs— — — — — — — — — 
Owner occupied commercial real estate
Pass23,196 23,185 26,945 20,979 9,513 31,222 97 55 135,192 
Special Mention— 370 — 109 — 2,206 2,000 — 4,685 
Substandard— 96 863 321 — 1,107 — — 2,387 
Doubtful— — — — — 15 — — 15 
Total23,196 23,651 27,808 21,409 9,513 34,550 2,097 55 142,279 
Gross charge-offs— — — — — — — — — 
Non-owner occupied commercial real estate
Pass97,155 109,354 267,280 141,864 97,828 233,084 6,696 777 954,038 
Special Mention— — 5,935 7,793 — 7,833 — — 21,561 
Substandard— 2,148 146 — 1,014 875 — — 4,183 
Doubtful— — — — — — — — — 
Total97,155 111,502 273,361 149,657 98,842 241,792 6,696 777 979,782 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated21,574 20,257 55,321 55,152 64,471 56,708 — — 273,483 
Substandard— — 85 771 220 420 — — 1,496 
Total21,574 20,257 55,406 55,923 64,691 57,128 — — 274,979 
Gross charge-offs— — — — — 21 — — 21 
Home equity lines and loans
Not rated13,833 10,657 14,094 4,879 2,503 10,259 35,015 1,252 92,492 
Special Mention— — 115 — — — — — 115 
Substandard— 24 63 — — 195 116 215 613 
Total13,833 10,681 14,272 4,879 2,503 10,454 35,131 1,467 93,220 
Gross charge-offs— — 1 — — 11 1 — 13 
Indirect consumer
Not rated37,746 52,480 67,237 13,266 4,194 2,726 — — 177,649 
Substandard75 157 107 79 11 40 — — 469 
Total37,821 52,637 67,344 13,345 4,205 2,766 — — 178,118 
Gross charge-offs47 517 525 161 99 116 — — 1,465 
Direct consumer
Not rated2,420 1,681 1,454 275 41 225 2,455 14 8,565 
Substandard— — — — — — 10 2 12 
Total2,420 1,681 1,454 275 41 225 2,465 16 8,577 
Gross charge-offs5 21 20 14 — 4 8 — 72 
Total loans$260,403 $299,782 $496,016 $272,066 $192,541 $380,263 $166,273 $4,075 $2,071,419 
Total gross charge-offs$52 $622 $746 $181 $99 $152 $21 $— $1,873