LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Composition of the Loan Portfolio by Type

The composition of the loan portfolio, net of deferred loan fees as of December 31, 2025 and 2024 is summarized as follows (in thousands):


	2025		2024

Commercial and industrial	$	324,185	$	299,521

Commercial mortgages:
Construction	120,418		94,943
Owner occupied commercial real estate	178,620		142,279
Non-owner occupied commercial real estate	1,110,689		979,782
Residential mortgages	286,885		274,979
Consumer loans:

Home equity lines and loans	109,723		93,220
Indirect consumer loans	132,699		178,118
Direct consumer loans	6,342		8,577
Total loans, net of deferred loan fees	2,269,561		2,071,419
Allowance for credit losses	(24,209)		(21,388)
Loans, net of allowance for credit losses	$	2,245,352	$	2,050,031

Schedule of Allowance for Loan Losses by Portfolio Segment

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 losses	Commercial and Industrial		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
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 losses	Commercial and Industrial		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
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.

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 commitments	2025		2024
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 losses	2025		2024
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 losses	Commercial and Industrial		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
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 losses	Commercial and Industrial		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Ending allowance balance attributable to loans:
Individually analyzed	$	1,446	$	106	$	—	$	—	$	1,552
Collectively analyzed	3,074		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
Loans	Commercial and Industrial		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Loans individually analyzed	$	693	$	3,167	$	—	$	327	$	4,187
Loans collectively analyzed	323,492		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
Loans	Commercial and Industrial		Commercial Mortgages		Residential Mortgages		Consumer Loans		Total
Loans individually analyzed	$	1,512	$	4,959	$	—	$	—	$	6,471
Loans collectively analyzed	298,009		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

Schedule of Financing Receivable, Modified

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 2022-02	Principal Reduction		Interest Rate Reduction		Term Extension		Payment Delay		Combination		Total		(%) 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 2022-02	Principal Reduction		Interest Rate Reduction		Term Extension		Payment Delay		Combination		Total		(%) 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 2022-02

Principal 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 months

6 months

Residential mortgages

$—

—%

0 months

6 months

December 31, 2024

Effect of loan modifications under ASU 2022-02

Principal Reduction (in thousands)

Weighted average interest rate reduction (%)

Weighted average term extension
(in months)

Weighted average payment delay
(in months)

Commercial and industrial

—

—%

60 months

0 months

Commercial mortgages:

Owner occupied commercial real estate

—

—%

0 months

101 months

Residential mortgages

—

—%

0 months

6 months

Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans

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 Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Loans Not Past Due		Total



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 Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Loans Not Past Due		Total

Commercial and industrial	$	—	$	—	$	—	$	384	$	384

Commercial mortgages:

Owner occupied commercial real estate	—		—		—		376		376

Residential mortgages	—		—		440		—		440




Total	$	—	$	—	$	440	$	760	$	1,200

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 Losses				Nonaccrual				Loans Past Due 90 Days or More and Still Accruing
	2025		2024		2025		2024		2025		2024

Commercial and industrial	$	136	$	76	$	779	$	1,534	$	17	$	23

Commercial mortgages:

Owner occupied commercial real estate	625		1,362		629		1,377		—		—
Non-owner occupied commercial real estate	23		2,619		2,538		3,582		—		—
Residential mortgages	1,753		1,372		1,753		1,372		—		—
Consumer loans:

Home equity lines and loans	1,005		613		1,005		613		—		—
Indirect consumer loans	1,117		474		1,117		474		—		—
Direct consumer loans	87		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 Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total

Commercial and industrial	$	817	$	55	$	36	$	908	$	323,277	$	324,185

Commercial mortgages:
Construction	—		—		—		—		120,418		120,418
Owner occupied commercial real estate	105		—		96		201		178,419		178,620
Non-owner occupied commercial real estate	—		—		2,538		2,538		1,108,151		1,110,689
Residential mortgages	1,277		693		901		2,871		284,014		286,885
Consumer loans:

Home equity lines and loans	747		26		249		1,022		108,701		109,723
Indirect consumer loans	2,312		656		616		3,584		129,115		132,699
Direct consumer loans	23		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 Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total

Commercial and industrial	$	140	$	201	$	702	$	1,043	$	298,478	$	299,521

Commercial mortgages:
Construction	—		—		—		—		94,943		94,943
Owner occupied commercial real estate	82		—		96		178		142,101		142,279
Non-owner occupied commercial real estate	950		—		3,162		4,112		975,670		979,782
Residential mortgages	1,529		662		696		2,887		272,092		274,979
Consumer loans:

Home equity lines and loans	231		—		364		595		92,625		93,220
Indirect consumer loans	2,101		719		235		3,055		175,063		178,118
Direct consumer loans	14		6		1		21		8,556		8,577
Total	$	5,047	$	1,588	$	5,256	$	11,891	$	2,059,528	$	2,071,419

Schedule Of Analysis Of Collateral Dependent Loans

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, 2025				December 31, 2024
	Amortized Cost Basis		Related Allowance		Amortized Cost Basis		Related 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

Schedule of Risk Category of Recorded Investment of Loans by Class of Loans

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 Year												Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
	2025		2024		2023		2022		2021		Prior
Commercial and industrial
Pass	$	52,419	$	25,663	$	22,131	$	25,382	$	11,367	$	15,765	$	135,641	$	2,726	$	291,094
Special Mention	1,616		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
Total	54,035		26,011		22,640		27,545		12,821		23,201		151,425		6,507		324,185
Gross charge-offs	—		19		—		—		772		—		6		—		797









Construction
Pass	38,266		29,670		33,259		14,754		1,213		1,323		1,933		—		120,418
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total	38,266		29,670		33,259		14,754		1,213		1,323		1,933		—		120,418
Gross charge-offs	—		—		—		—		—		—		—		—		—

Owner occupied commercial real estate
Pass	48,350		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
Substandard	1,207		—		96		468		—		886		—		—		2,657
Doubtful	—		—		—		—		—		4		—		—		4
Total	49,557		23,186		22,308		25,164		19,878		35,898		2,590		39		178,620
Gross charge-offs	—		—		—		—		—		—		—		—		—

Non-owner occupied commercial real estate
Pass	162,357		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
Substandard	2,039		—		2,515		—		—		469		—		—		5,023
Doubtful	—		—		—		—		—		—		—		—		—
Total	164,396		102,759		117,401		261,738		146,391		308,176		9,102		726		1,110,689
Gross charge-offs	—		—		—		—		—		6		—		—		6

Residential mortgages
Not rated	38,892		24,307		17,590		50,866		50,380		102,421		—		—		284,456
Special Mention	—		—		—		—		426		—		—		—		426
Substandard	—		—		69		295		309		1,330		—		—		2,003
Total	38,892		24,307		17,659		51,161		51,115		103,751		—		—		286,885
Gross charge-offs	—		—		—		—		—		—		—		—		—

Home equity lines and loans
Not rated	7,882		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
Total	7,882		12,004		8,871		11,459		4,113		10,316		53,331		1,747		109,723
Gross charge-offs	—		—		—		—		—		—		—		—		—

Indirect consumer
Not rated	23,872		26,326		33,271		39,644		6,197		2,207		—		—		131,517
Substandard	82		395		386		249		26		44		—		—		1,182
Total	23,954		26,721		33,657		39,893		6,223		2,251		—		—		132,699
Gross charge-offs	12		345		641		358		121		78		—		—		1,555

Direct consumer
Not rated	1,591		1,339		750		460		60		154		1,969		4		6,327
Substandard	2		—		—		3		—		—		10		—		15
Total	1,593		1,339		750		463		60		154		1,979		4		6,342
Gross charge-offs	12		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 Year												Revolving Loans Amortized Cost		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	44,130	$	32,157	$	34,862	$	16,787	$	8,326	$	27,452	$	108,819	$	1,380	$	273,913
Special Mention	810		262		3,933		—		4,390		3,673		10,203		62		23,333
Substandard	99		—		8		733		30		—		379		318		1,567
Doubtful	21		—		—		—		—		687		—		—		708
Total	45,060		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
Pass	19,344		46,954		17,568		9,058		—		1,536		483		—		94,943
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total	19,344		46,954		17,568		9,058		—		1,536		483		—		94,943
Gross charge-offs	—		—		—		—		—		—		—		—		—

Owner occupied commercial real estate
Pass	23,196		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
Total	23,196		23,651		27,808		21,409		9,513		34,550		2,097		55		142,279
Gross charge-offs	—		—		—		—		—		—		—		—		—

Non-owner occupied commercial real estate
Pass	97,155		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	—		—		—		—		—		—		—		—		—
Total	97,155		111,502		273,361		149,657		98,842		241,792		6,696		777		979,782
Gross charge-offs	—		—		—		—		—		—		—		—		—

Residential mortgages
Not rated	21,574		20,257		55,321		55,152		64,471		56,708		—		—		273,483
Substandard	—		—		85		771		220		420		—		—		1,496
Total	21,574		20,257		55,406		55,923		64,691		57,128		—		—		274,979
Gross charge-offs	—		—		—		—		—		21		—		—		21

Home equity lines and loans
Not rated	13,833		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
Total	13,833		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 rated	37,746		52,480		67,237		13,266		4,194		2,726		—		—		177,649
Substandard	75		157		107		79		11		40		—		—		469
Total	37,821		52,637		67,344		13,345		4,205		2,766		—		—		178,118
Gross charge-offs	47		517		525		161		99		116		—		—		1,465

Direct consumer
Not rated	2,420		1,681		1,454		275		41		225		2,455		14		8,565
Substandard	—		—		—		—		—		—		10		2		12
Total	2,420		1,681		1,454		275		41		225		2,465		16		8,577
Gross charge-offs	5		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