Loans and Related Allowance for Credit Losses

3 Months Ended

Mar. 31, 2026

Loans and Related Allowance for Credit Losses

Loans and Related Allowance for Credit Losses

Note 5 – Loans and Related Allowance for Credit Losses

The following table summarizes the primary segments of the loan portfolio at March 31, 2026 and December 31, 2025:

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
March 31, 2026
Individually evaluated for impairment	$	1,283	$	—	$	5,717	$	1,550	$	—	$	8,550
Collectively evaluated for impairment		608,208		97,785		240,475		524,764		45,684		1,516,916
Total loans	$	609,491	$	97,785	$	246,192	$	526,314	$	45,684	$	1,525,466
December 31, 2025
Individually evaluated for impairment	$	617	$	—	$	17,142	$	1,927	$	—	$	19,686
Collectively evaluated for impairment		570,191		90,272		259,892		534,985		46,678		1,502,018
Total loans	$	570,808	$	90,272	$	277,034	$	536,912	$	46,678	$	1,521,704

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at March 31, 2026 and December 31, 2025:

(in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days+ Past Due		Total Past Due and Accruing		Non- Accrual		Total Loans
March 31, 2026
Commercial real estate:
Non-owner-occupied	$	352,933	$	—	$	—	$	—	$	—	$	100	$	353,033
All other CRE		252,250		2,813		34		—		2,847		1,361		256,458
Acquisition and development:
1-4 family residential construction		25,120		—		—		—		—		—		25,120
All other A&D		72,665		—		—		—		—		—		72,665
Commercial and industrial		244,817		209		140		—		349		1,026		246,192
Residential mortgage:
Residential mortgage - term		455,226		802		386		43		1,231		2,047		458,504
Residential mortgage - home equity		67,229		314		114		—		428		153		67,810
Consumer		45,250		203		200		23		426		8		45,684
Total	$	1,515,490	$	4,341	$	874	$	66	$	5,281	$	4,695	$	1,525,466
December 31, 2025
Commercial real estate:
Non-owner-occupied	$	334,581	$	—	$	—	$	—	$	—	$	102	$	334,683
All other CRE		234,459		769		304		—		1,073		593		236,125
Acquisition and development:
1-4 family residential construction		15,369		—		—		—		—		—		15,369
All other A&D		74,903		—		—		—		—		—		74,903
Commercial and industrial		275,826		112		28		—		140		1,068		277,034
Residential mortgage:
Residential mortgage - term		464,294		150		2,146		244		2,540		2,223		469,057
Residential mortgage - home equity		67,154		256		86		188		530		171		67,855
Consumer		46,100		252		246		45		543		35		46,678
Total	$	1,512,686	$	1,539	$	2,810	$	477	$	4,826	$	4,192	$	1,521,704

Non-accrual loans that have been subject to partial charge-offs totaled $0.1 million at March 31, 2026 and $0.2 million at December 31, 2025.  There were no loans secured by 1-4 family residential real estate properties in the process of foreclosure at March 31, 2026.  Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $0.5 million at December 31, 2025.  

A loan that is considered a non-accrual or modified loan may be subject to the individually evaluated loan analysis if the commitment is $100,000 or greater; otherwise, the modified loan remains in the appropriate segment in the ACL model and associated reserves are adjusted based on changes in the discounted cash flows resulting from the modification of the modified loan.  For a discussion with respect to reserve calculations regarding individually evaluated loans, refer to the “Nonrecurring Loans” section in Note 6, Fair Value of Financial Instruments.

The Corporation maintains an ACL at a level determined to be adequate to absorb expected credit losses associated with the Corporation’s financial instruments over the life of those instruments as of the balance sheet date.  The Corporation develops and documents a systematic ACL methodology based on the following portfolio segments: (i) commercial real estate; (ii) acquisition and development; (iii) commercial and industrial; (iv) residential mortgage; and (v) consumer.  The Corporation’s loan portfolio is

segmented by homogeneous loan types that behave similarly to economic cycles.  The following is a discussion of the key risks by portfolio segment that management assesses in preparing the ACL.

Commercial Real Estate- loans are secured by commercial purpose real estate, including both owner-occupied properties and properties obtained for investment purposes, such as hotels, strip malls and apartments.  Operations of the individual projects as well as global cash flows of the debtors are the primary source of repayment of these loans.  The condition of the local economy is an important indicator of risk, but there are more specific risks depending on the collateral type as well as the business.

Acquisition and Development- loans include both commercial and consumer.  Commercial loans are made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes.  While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal.  The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.  Consumer loans are made for the construction of residential homes for which a binding sales contract exists and generally are for a period of time sufficient to complete construction.  Residential construction loans to individuals generally provide for the payment of interest only during the construction phase.  Credit risk for residential real estate construction loans can arise from construction delays, cost overruns, failure of the contractor to complete the project to specifications and economic conditions that could impact demand for supply of the property being constructed.

Commercial and Industrial- loans are made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing.  Cash flow from the operations of the borrower is the primary source of repayment for these loans.  The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the borrower.  The collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.  These loans are also made to local municipalities for various purposes including refinancing existing obligations, infrastructure up-fit and expansion, or to purchase new equipment.  The primary repayment source for local municipalities includes the tax base of the municipality, specific revenue streams related to the infrastructure financed, and other business operations of the municipal authority.  The health and stability of state and local economies directly impacts each municipality’s tax basis and are important indicators of risk for this segment.  The ability of each municipality to increase taxes and fees to offset service requirements give this type of loan a very low risk profile in the continuum of the Corporation’s loan portfolio.

Residential Mortgage- loans are secured by first and second liens such as home equity lines of credit and 1-4 family residential mortgages.  The primary source of repayment for these loans is the income of the borrower.  The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment.  The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy debt.

Consumer- loans are made to individuals and may be either secured by assets other than real estate or unsecured.  This segment includes automobile loans and unsecured loans and lines of credit.  The primary source of repayment for these loans is the income and assets of the borrower.  The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment.  The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

The following tables present the amortized cost basis of loans on a nonaccrual status at March 31, 2026 and December 31, 2025:

(in thousands)	Nonaccrual Loans With No Allowance for Credit Loss		Nonaccrual Loans With Allowance for Credit Loss		Total Nonaccrual Loans
March 31, 2026
Commercial real estate
Non owner-occupied	$	—	$	100	$	100
All other CRE		1,283		78		1,361
Commercial and industrial		978		48		1,026
Residential mortgage
Residential mortgage - term		1,550		497		2,047
Residential mortgage – home equity		—		153		153
Consumer		—		8		8
Total	$	3,811	$	884	$	4,695

(in thousands)	Nonaccrual Loans With No Allowance for Credit Loss		Nonaccrual Loans With Allowance for Credit Loss		Total Nonaccrual Loans
December 31, 2025
Commercial real estate
Non owner-occupied	$	102	$	—	$	102
All other CRE		515		78		593
Commercial and industrial		978		90		1,068
Residential mortgage
Residential mortgage - term		1,823		400		2,223
Residential mortgage – home equity		104		67		171
Consumer		—		35		35
Total	$	3,522	$	670	$	4,192

The following table summarizes the primary segments of the ACL at March 31, 2026 and December 31, 2025, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
March 31, 2026
Individually evaluated for impairment	$	—	$	—	$	128	$	—	$	—	$	128
Collectively evaluated for impairment		5,638		1,446		3,922		7,974		843		19,823
Total ACL	$	5,638	$	1,446	$	4,050	$	7,974	$	843	$	19,951
December 31, 2025
Individually evaluated for impairment	$	—	$	—	$	417	$	—	$	—	$	417
Collectively evaluated for impairment		4,644		1,278		4,056		8,272		803		19,053
Total ACL	$	4,644	$	1,278	$	4,473	$	8,272	$	803	$	19,470

Changes in the fair value of the types of collateral for individually evaluated loans are reported as provision for credit loss in the period of change.  The evaluation of the need and amount of a specific allocation of the ACL and whether a loan can be removed from impairment status is made on a quarterly basis.

The following tables present the amortized cost basis of collateral-dependent individually evaluated loans as of March 31, 2026 and December 31, 2025.

	March 31, 2026
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance for Credit Loss
Commercial real estate	$	1,283	$	—	$	1,283
Commercial and industrial		—		978		978
Residential mortgage		1,550		—		1,550
Consumer		—		—		—
Total Loans	$	2,833	$	978	$	3,811

	December 31, 2025
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance for Credit Loss
Commercial real estate	$	617	$	—	$	617
Commercial and industrial		—		978		978
Residential mortgage		1,927		—		1,927
Total Loans	$	2,544	$	978	$	3,522

The following tables present the activity in the ACL for the three-month periods ended March 31, 2026 and 2025:

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
Beginning balance at January 1, 2026	$	4,644	$	1,278	$	4,473	$	8,272	$	803	$	19,470
Loan charge-offs		—		—		(71)		(4)		(198)		(273)
Recoveries collected		—		7		2		10		56		75
Credit loss expense/(credit)		994		161		(354)		(304)		182		679
ACL balance at March 31, 2026	$	5,638	$	1,446	$	4,050	$	7,974	$	843	$	19,951
Beginning balance at January 1, 2025	$	5,272	$	909	$	4,205	$	7,010	$	774	$	18,170
Loan charge-offs		—		(3)		(355)		—		(184)		(542)
Recoveries collected		—		64		2		16		100		182
Credit loss expense/(credit)		398		(30)		482		(303)		110		657
ACL balance at March 31, 2025	$	5,670	$	940	$	4,334	$	6,723	$	800	$	18,467

The Corporation’s methodology for estimating the ACL includes:

Segmentation.  The Corporation’s loan portfolio is segmented by homogeneous loan types that behave similarly to economic cycles.

Specific Analysis.  A specific reserve analysis is applied to certain individually evaluated loans.  These loans are evaluated quarterly based on collateral value, observable market value or the present value of expected future cash flows.  A specific reserve is established if the fair value is less than the loan balance.  A charge-off is recognized when the loss is quantifiable.  Individually evaluated loans not specifically analyzed reside in the quantitative analysis.

Quantitative Analysis.  The Corporation has elected to use discounted cash flows.  Economic forecasts include but are not limited to unemployment, the Consumer Price Index, the Housing Affordability Index, and Gross State Product.  These forecasts are assumed to revert to the long-term average and are utilized in the model to estimate the probability of default and the loss given default is the estimated loss rate, which varies over time.  The estimated loss rate is applied within the appropriate periods in the cash flow model to determine the net present value.  Net present value is also impacted by assumptions related to the duration between default and recovery.  The reserve is based on the difference between the summation of the principal balances taking amortized costs into consideration and the summation of the net present values.

The Corporation has elected to forecast out the first four quarters of the credit loss estimate and revert this forecast to long-term historical averages on a straight-line basis over eight quarters.  By reverting these modeling inputs to their historical average and considering loan/borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the reversion period.

Qualitative Analysis.  Based on management’s review and analysis of internal, external and model risks, management may adjust the model output.  Management reviews the peaks and troughs of the model’s calibrations, taking into account economic forecasts to develop guardrails that serve as the basis for determining the reasonableness of the model’s output and makes adjustments as necessary.  This process challenges unexpected variability resulting from outputs beyond the model’s calibrations that appear to be unreasonable.  Management also enhances the calculation through the use of Moody’s economic forecast data in its calculation. Additionally, management may adjust the economic forecast if it is incompatible with known market conditions based on management’s experience and perspective.

The ACL is based on estimates, and actual losses may vary from current estimates.  Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ACL that is representative of the risk found in the components of the portfolio at any given date.

Credit Quality Indicators:

The Corporation’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all.  The Corporation’s internal credit risk grading system is based on debt service coverage, collateral values and other subjective factors.  Mortgage and consumer loans are defaulted to pass grade until a loan migrates to past due status.  

The Corporation has a loan review policy and annual scope report that details the level of loan review for loans in a given year.  The annual loan review provides the Credit Risk Committee with an independent analysis of the following:  (i) credit quality of the loan portfolio; (ii) compliance with loan policy; (iii) adequacy of documentation in credit files; and (iv) validity of risk ratings.  

The Corporation’s internally assigned grades are as follows:

Pass- The Corporation uses six grades of pass, including its watch rating.  Generally, a pass rating indicates that the loan is currently performing and is of high quality.

Special Mention- Assets with potential weaknesses that warrant management’s close attention and if left unchanged, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.

Substandard-  Assets that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any.  Assets so classified have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt.  Such assets are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful- Assets with all weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

Loss- Assets considered of such little value that its continuance on the books is not warranted.  This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical to defer writing off this basically worthless asset even though partial recovery may be affected in the future.

The ability of borrowers to repay commercial loans is dependent upon the success of their business and general economic conditions.  Due to the greater potential for loss within our commercial portfolio, we monitor the commercial loan portfolio through an internal risk rating system.  Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies.  Loans rated special mention or substandard have potential or well-defined weaknesses not generally found in high quality, performing loans, and require attention from management to limit loss.

The following tables present loan balances by year of origination and internally assigned risk rating for our portfolio segments for the periods presented:

(in thousands)	2026		2025		2024		2023		2022		2021 and Prior		Revolving		Total Portfolio Loans
March 31, 2026
Commercial real estate:
Non-owner-occupied
Pass	$	21,959	$	33,134	$	22,690	$	47,995	$	77,631	$	139,059	$	8,648	$	351,116
Substandard		—		—		—		100		—		1,817		—		1,917
Total non-owner occupied		21,959		33,134		22,690		48,095		77,631		140,876		8,648		353,033
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other CRE
Pass		28,122		24,755		49,711		30,575		21,709		91,227		2,091		248,190
Substandard		—		—		912		802		—		6,454		100		8,268
Total all other CRE		28,122		24,755		50,623		31,377		21,709		97,681		2,191		256,458
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		2,571		15,036		3,333		973		—		—		3,207		25,120
Total acquisition and development		2,571		15,036		3,333		973		—		—		3,207		25,120
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		5,203		12,414		22,492		2,708		3,933		10,095		15,526		72,371
Substandard		—		294		—		—		—		—		—		294
Total all other A&D		5,203		12,708		22,492		2,708		3,933		10,095		15,526		72,665
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		10,221		35,147		16,551		21,716		27,897		18,263		69,175		198,970
Special Mention		—		—		4,250		19,032		3,500		—		500		27,282
Substandard		—		56		97		281		1,135		7,841		10,530		19,940
Total commercial and industrial		10,221		35,203		20,898		41,029		32,532		26,104		80,205		246,192
Current period gross charge-offs		—		—		—		6		23		42		—		71
Residential mortgage:
Residential mortgage - term
Pass		10,881		44,928		46,044		60,983		82,478		204,770		986		451,070
Substandard		—		—		—		—		849		6,563		22		7,434
Total residential mortgage - term		10,881		44,928		46,044		60,983		83,327		211,333		1,008		458,504
Current period gross charge-offs		—		—		—		—		—		4		—		4
Residential mortgage - home equity
Pass		230		544		58		534		3,044		1,367		61,017		66,794
Substandard		—		—		—		—		—		8		1,008		1,016
Total residential mortgage - home equity		230		544		58		534		3,044		1,375		62,025		67,810
Current period gross charge-offs		—		—		—		—		—		—		—		—
Consumer:
Pass		4,077		8,748		5,333		5,513		2,746		16,248		2,744		45,409
Substandard		—		13		118		57		52		26		9		275
Total consumer		4,077		8,761		5,451		5,570		2,798		16,274		2,753		45,684
Current period gross charge-offs		36		76		46		13		3		24		—		198
Total Portfolio Loans
Pass		83,264		174,706		166,212		170,997		219,438		481,029		163,394		1,459,040
Special Mention		—		—		4,250		19,032		3,500		—		500		27,282
Substandard		—		363		1,127		1,240		2,036		22,709		11,669		39,144
Total Portfolio Loans	$	83,264	$	175,069	$	171,589	$	191,269	$	224,974	$	503,738	$	175,563	$	1,525,466
Current YTD Period:
Current period gross charge-offs	$	36	$	76	$	46	$	19	$	26	$	70	$	—	$	273

(in thousands)	2025		2024		2023		2022		2021		2020 and Prior		Revolving		Total Portfolio Loans
December 31, 2025
Commercial real estate:
Non-owner-occupied
Pass	$	33,245	$	22,810	$	40,375	$	78,385	$	25,911	$	123,082	$	8,917	$	332,725
Substandard		—		—		102		—		—		1,856		—		1,958
Total non-owner occupied		33,245		22,810		40,477		78,385		25,911		124,938		8,917		334,683
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other CRE
Pass		24,612		50,485		31,650		22,273		20,617		75,235		3,240		228,112
Special Mention		—		—		—		—		864		—		—		864
Substandard		—		915		—		—		1,712		3,922		600		7,149
Total all other CRE		24,612		51,400		31,650		22,273		23,193		79,157		3,840		236,125
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		11,783		91		980		—		—		—		2,515		15,369
Total acquisition and development		11,783		91		980		—		—		—		2,515		15,369
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		13,267		24,703		8,852		3,988		1,582		8,840		13,374		74,606
Substandard		297		—		—		—		—		—		—		297
Total all other A&D		13,564		24,703		8,852		3,988		1,582		8,840		13,374		74,903
Current period gross charge-offs		—		—		—		—		—		9		—		9
Commercial and industrial:
Pass		37,145		17,406		17,629		45,513		11,060		13,892		71,139		213,784
Special Mention		—		4,250		19,112		3,638		32		—		4,963		31,995
Substandard		22		100		235		1,008		106		8,015		21,769		31,255
Total commercial and industrial		37,167		21,756		36,976		50,159		11,198		21,907		97,871		277,034
Current period gross charge-offs		—		—		—		—		570		441		—		1,011
Residential mortgage:
Residential mortgage - term
Pass		44,643		47,862		63,667		86,508		69,335		148,527		1,057		461,599
Substandard		—		—		—		857		1,173		5,405		23		7,458
Total residential mortgage - term		44,643		47,862		63,667		87,365		70,508		153,932		1,080		469,057
Current period gross charge-offs		—		—		—		—		—		—		—		—
Residential mortgage - home equity
Pass		558		59		567		3,180		557		866		61,070		66,857
Substandard		—		—		—		—		—		9		989		998
Total residential mortgage - home equity		558		59		567		3,180		557		875		62,059		67,855
Current period gross charge-offs		—		—		15		—		—		—		—		15
Consumer:
Pass		9,849		6,814		6,369		3,372		1,593		15,573		2,789		46,359
Substandard		60		94		82		49		7		15		12		319
Total consumer		9,909		6,908		6,451		3,421		1,600		15,588		2,801		46,678
Current period gross charge-offs		275		92		172		18		104		54		—		715
Total Portfolio Loans
Pass		175,102		170,230		170,089		243,219		130,655		386,015		164,101		1,439,411
Special Mention		—		4,250		19,112		3,638		896		—		4,963		32,859
Substandard		379		1,109		419		1,914		2,998		19,222		23,393		49,434
Total Portfolio Loans	$	175,481	$	175,589	$	189,620	$	248,771	$	134,549	$	405,237	$	192,457	$	1,521,704
Current YTD Period:
Current period gross charge-offs	$	275	$	92	$	187	$	18	$	674	$	504	$	—	$	1,750

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.

The following tables present loan balances by year of origination segregated by performing and non-performing loans for the periods presented:

(in thousands)	2026		2025		2024		2023		2022		2021 and Prior		Revolving		Total Portfolio Loans
March 31, 2026
Commercial real estate:
Non-owner-occupied
Performing	$	21,959	$	33,134	$	22,690	$	47,995	$	77,631	$	140,876	$	8,648	$	352,933
Nonperforming		—		—		—		100		—		—		—		100
Total non-owner occupied		21,959		33,134		22,690		48,095		77,631		140,876		8,648		353,033
All other CRE
Performing		28,122		24,755		50,623		30,609		21,709		97,088		2,191		255,097
Nonperforming		—		—		—		768		—		593		—		1,361
Total all other CRE		28,122		24,755		50,623		31,377		21,709		97,681		2,191		256,458
Acquisition and development:
1-4 family residential construction
Performing		2,571		15,036		3,333		973		—		—		3,207		25,120
Total acquisition and development		2,571		15,036		3,333		973		—		—		3,207		25,120
All other A&D
Performing		5,203		12,708		22,492		2,708		3,933		10,095		15,526		72,665
Total all other A&D		5,203		12,708		22,492		2,708		3,933		10,095		15,526		72,665
Commercial and industrial:
Performing		10,221		35,203		20,898		41,029		31,554		26,056		80,205		245,166
Nonperforming		—		—		—		—		978		48		—		1,026
Total commercial and industrial		10,221		35,203		20,898		41,029		32,532		26,104		80,205		246,192
Residential mortgage:
Residential mortgage - term
Performing		10,881		44,928		46,044		60,983		83,327		209,243		1,008		456,414
Nonperforming		—		—		—		—		—		2,090		—		2,090
Total residential mortgage - term		10,881		44,928		46,044		60,983		83,327		211,333		1,008		458,504
Residential mortgage - home equity
Performing		230		544		58		525		3,044		1,231		62,025		67,657
Nonperforming		—		—		—		9		—		144		—		153
Total residential mortgage - home equity		230		544		58		534		3,044		1,375		62,025		67,810
Consumer:
Performing		4,077		8,761		5,451		5,561		2,787		16,263		2,753		45,653
Nonperforming		—		—		—		9		11		11		—		31
Total consumer		4,077		8,761		5,451		5,570		2,798		16,274		2,753		45,684
Total Portfolio Loans
Performing		83,264		175,069		171,589		190,383		223,985		500,852		175,563		1,520,705
Nonperforming		—		—		—		886		989		2,886		—		4,761
Total Portfolio Loans	$	83,264	$	175,069	$	171,589	$	191,269	$	224,974	$	503,738	$	175,563	$	1,525,466

(in thousands)	2025		2024		2023		2022		2021		2020 and Prior		Revolving		Total Portfolio Loans
December 31, 2025
Commercial real estate:
Non-owner-occupied
Performing	$	33,245	$	22,810	$	40,375	$	78,385	$	25,911	$	124,938	$	8,917	$	334,581
Nonperforming		—		—		102		—		—		—		—		102
Total non-owner occupied		33,245		22,810		40,477		78,385		25,911		124,938		8,917		334,683
All other CRE
Performing		24,612		51,400		31,650		22,273		23,193		78,564		3,840		235,532
Nonperforming		—		—		—		—		—		593		—		593
Total all other CRE		24,612		51,400		31,650		22,273		23,193		79,157		3,840		236,125
Acquisition and development:
1-4 family residential construction
Performing		11,783		91		980		—		—		—		2,515		15,369
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		11,783		91		980		—		—		—		2,515		15,369
All other A&D
Performing		13,564		24,703		8,852		3,988		1,582		8,840		13,374		74,903
Nonperforming		—		—		—		—		—		—		—		—
Total all other A&D		13,564		24,703		8,852		3,988		1,582		8,840		13,374		74,903
Commercial and industrial:
Performing		37,167		21,756		36,976		49,181		11,108		21,907		97,871		275,966
Nonperforming		—		—		—		978		90		—		—		1,068
Total commercial and industrial		37,167		21,756		36,976		50,159		11,198		21,907		97,871		277,034
Residential mortgage:
Residential mortgage - term
Performing		44,643		47,862		63,667		87,365		70,127		151,846		1,080		466,590
Nonperforming		—		—		—		—		381		2,086		—		2,467
Total residential mortgage - term		44,643		47,862		63,667		87,365		70,508		153,932		1,080		469,057
Residential mortgage - home equity
Performing		558		59		567		3,180		557		875		61,700		67,496
Nonperforming		—		—		—		—		—		—		359		359
Total residential mortgage - home equity		558		59		567		3,180		557		875		62,059		67,855
Consumer:
Performing		9,909		6,891		6,416		3,409		1,600		15,572		2,801		46,598
Nonperforming		—		17		35		12		—		16		—		80
Total consumer		9,909		6,908		6,451		3,421		1,600		15,588		2,801		46,678
Total Portfolio Loans
Performing		175,481		175,572		189,483		247,781		134,078		402,542		192,098		1,517,035
Nonperforming		—		17		137		990		471		2,695		359		4,669
Total Portfolio Loans	$	175,481	$	175,589	$	189,620	$	248,771	$	134,549	$	405,237	$	192,457	$	1,521,704

Loan Modifications for Borrowers Experiencing Financial Difficulty

The Corporation evaluates all loan modifications according to the accounting guidance in ASU No. 2022-02 to determine if the modification results in a new loan or a continuation of the existing loan.  Loan modifications to borrowers experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, or combinations of the listed

modifications.  Therefore, the disclosures related to loan restructurings are for modifications which have a direct impact on cash flows.

The Corporation may offer various types of modifications when restructuring a loan.  Commercial and industrial loans modified in a loan restructuring often involve temporary interest-only payments, term extensions, and converting credit lines to term loans.  Additional collateral, a co-borrower, or a guarantor is often requested.

Commercial mortgage and construction loans modified in a loan restructuring often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor.  Construction loans modified in a loan restructuring may also involve extending the interest-only payment period.

Loans modified in a loan restructuring for the Corporation may have the financial effect of increasing the specific allowance associated with the loan.  An allowance for loans that have been modified in a loan restructuring is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent.  Management exercises significant judgment in developing these estimates.

Commercial and consumer loans modified in a loan restructuring are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a loan restructuring subsequently default, the Corporation evaluates the loan for possible further loss.  The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.

The following tables present the amortized cost basis and the financial effect of loans modified to borrowers experiencing financial difficulty during the three-month periods ended March 31, 2026 and 2025.  There was one new loan and one existing loan that were modified during the three-month period ended March 31, 2026:

(in thousands)	Term Extension		Percentage of Total Loan Type		Weighted Average Term and Principal Payment Extension
Three months ended March 31, 2026
Residential mortgage - term	$	759		0.17%	1 month
Owner-occupied commercial real estate		857		0.33%	12 months
	$	1,616
(in thousands)	Term Extension		Percentage of Total Loan Type		Weighted Average Term and Principal Payment Extension
Three months ended March 31, 2025
Commercial and industrial	$	24		0.01%	60 months
	$	24

The Corporation monitors loan payments on performing and non-performing loans on an ongoing basis to determine if a loan is considered to have a payment default.  The borrowers for whom loan modifications were made in the three-month period ended March 31, 2026 have made all contractual payments.

If a modified loan with an outstanding balance of $100,000 or greater subsequently defaults and goes on non-accrual status, then the Corporation individually evaluates the loan when performing its estimate of current expected credit losses to calculate the ACL.  Upon determination that a modified loan (or a portion of a modified loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged off.  Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.