Loans

3 Months Ended

Mar. 31, 2026

Receivables [Abstract]

Loans

Loans

The Company periodically reviews and updates the segmentation of its loan portfolio. Updates performed in conjunction with adoption of ASC 326 in 2023 consisted of reporting what had been a single class, commercial real estate loans, as three classes - commercial real estate owner occupied, commercial real estate non-owner occupied, and commercial multi-family. In addition home equity installment loans which had previously been included in the residential term class were included in the home equity revolving and term class. In the first quarter of 2024, a new segment was established for Agriculture loans, and there have been no subsequent segmentation changes.

Loan Portfolio by Class: The following table shows the composition of the Company's loan portfolio by class of financing receivable as of March 31, 2026 and 2025 and at December 31, 2025:

	March 31, 2026				December 31, 2025				March 31, 2025
Commercial
Real estate owner occupied	$	382,594,000	15.9	%	$	378,263,000	15.8	%	$	370,465,000	15.5	%
Real estate non-owner occupied	404,359,000		16.8	%	409,177,000		17.1	%	413,530,000		17.4	%
Construction	30,237,000		1.3	%	35,025,000		1.5	%	76,402,000		3.2	%
C&I	393,048,000		16.3	%	376,907,000		15.7	%	379,767,000		16.0	%
Multifamily	150,425,000		6.3	%	158,910,000		6.6	%	131,036,000		5.5	%
Agriculture	48,063,000		2.0	%	48,145,000		2.0	%	48,705,000		2.0	%
Municipal	52,168,000		2.2	%	52,074,000		2.2	%	55,104,000		2.3	%
Residential
Term	739,446,000		30.7	%	739,188,000		30.9	%	719,348,000		30.2	%
Construction	39,119,000		1.6	%	35,332,000		1.5	%	35,427,000		1.5	%
Home Equity
Revolving and term	147,102,000		6.1	%	142,219,000		5.9	%	131,522,000		5.5	%
Consumer	18,588,000		0.8	%	18,869,000		0.8	%	21,844,000		0.9	%
Total	$	2,405,149,000	100.0	%	$	2,394,109,000	100.0	%	$	2,383,150,000	100.0	%

Loan balances include net deferred loan costs of $12,669,000 as of March 31, 2026, $12,737,000 as of December 31, 2025, and $12,570,000 as of March 31, 2025. Net deferred loan costs have stayed within a narrow range as compared to year ago and year-to-date based upon loan origination unit volume over the periods, prepayments, and normal repayment activity. Loan balances in the Residential Term segment also include a valuation adjustment for fair value swaps hedged by certain loans in the portfolio. This adjustment added $502,000, $910,000 and $1,120,000 to the loan balances as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Also included in Residential term loan balances is a valuation adjustment for the market value of caps which subtracted $164,000 and added $371,000 to loan balances as of March 31, 2026 and December 31, 2025, respectively. There was no market value of caps adjustment as of March 31, 2025.

Pledged Loans: Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $662,819,000 at March 31, 2026, were used to collateralize borrowings from the FHLBB. This compares to qualifying loans which totaled $669,541,000 at December 31, 2025, and $631,410,000 at March 31, 2025. In addition, commercial, residential construction and home equity loans totaling $394,989,000 at March 31, 2026, $366,032,000 at December 31, 2025, and $411,257,000 at March 31, 2025, were used to collateralize a standby line of credit at the FRBB.

Past Due Loans: For all loan classes, loans over 30 days past due are considered delinquent. Information on the past-due status of loans by class of financing receivable as of March 31, 2026, is presented in the following table:

	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	2,254,000	$	—	$	3,361,000	$	5,615,000	$	376,979,000	$	382,594,000	$	—
Real estate non-owner occupied	2,474,000		—		—		2,474,000		401,885,000		404,359,000		—
Construction	—		—		7,000		7,000		30,230,000		30,237,000		7,000
C&I	152,000		4,457,000		1,442,000		6,051,000		386,997,000		393,048,000		—
Multifamily	—		—		1,760,000		1,760,000		148,665,000		150,425,000		—
Agriculture	32,000		—		211,000		243,000		47,820,000		48,063,000		—
Municipal	—		—		—		—		52,168,000		52,168,000		—
Residential
Term	3,123,000		1,448,000		3,601,000		8,172,000		731,274,000		739,446,000		543,000
Construction	235,000		—		—		235,000		38,884,000		39,119,000		—
Home equity
Revolving and term	1,715,000		461,000		227,000		2,403,000		144,699,000		147,102,000		31,000
Consumer	421,000		52,000		15,000		488,000		18,100,000		18,588,000		15,000
Total	$	10,406,000	$	6,418,000	$	10,624,000	$	27,448,000	$	2,377,701,000	$	2,405,149,000	$	596,000

Information on the past-due status of loans by class of financing receivable as of December 31, 2025, is presented in the following table:

	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	683,000	$	734,000	$	3,698,000	$	5,115,000	$	373,148,000	$	378,263,000	$	—
Real estate non-owner occupied	734,000		—		1,285,000		2,019,000		407,158,000		409,177,000		—
Construction	103,000		—		7,000		110,000		34,915,000		35,025,000		7,000
C&I	404,000		102,000		1,240,000		1,746,000		375,161,000		376,907,000		21,000
Multifamily	1,600,000		160,000		—		1,760,000		157,150,000		158,910,000		—
Agriculture	316,000		—		377,000		693,000		47,452,000		48,145,000		—
Municipal	—		—		—		—		52,074,000		52,074,000		—
Residential
Term	1,268,000		2,901,000		3,222,000		7,391,000		731,797,000		739,188,000		613,000
Construction	90,000		—		—		90,000		35,242,000		35,332,000		—
Home equity
Revolving and term	1,449,000		391,000		534,000		2,374,000		139,845,000		142,219,000		—
Consumer	152,000		118,000		39,000		309,000		18,560,000		18,869,000		24,000
Total	$	6,799,000	$	4,406,000	$	10,402,000	$	21,607,000	$	2,372,502,000	$	2,394,109,000	$	665,000

Information on the past-due status of loans by class of financing receivable as of March 31, 2025, is presented in the following table:

	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	—	$	—	$	195,000	$	195,000	$	370,270,000	$	370,465,000	$	—
Real estate non-owner occupied	—		—		61,000		61,000		413,469,000		413,530,000		—
Construction	44,000		—		—		44,000		76,358,000		76,402,000		—
C&I	99,000		314,000		1,887,000		2,300,000		377,467,000		379,767,000		—
Multifamily	—		—		—		—		131,036,000		131,036,000		—
Agriculture	148,000		—		81,000		229,000		48,476,000		48,705,000		—
Municipal	—		—		—		—		55,104,000		55,104,000		—
Residential
Term	1,136,000		342,000		1,650,000		3,128,000		716,220,000		719,348,000		—
Construction	157,000		—		—		157,000		35,270,000		35,427,000		—
Home equity
Revolving and term	642,000		127,000		82,000		851,000		130,671,000		131,522,000		—
Consumer	245,000		66,000		696,000		1,007,000		20,837,000		21,844,000		695,000
Total	$	2,471,000	$	849,000	$	4,652,000	$	7,972,000	$	2,375,178,000	$	2,383,150,000	$	695,000

Non-Accrual Loans: For all classes, loans are placed on non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when principal and interest is 90 days or more past due unless the loan is both well secured and in the process of collection (in which case the loan may continue to accrue interest in spite of its past due status). A loan is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is "in the process of collection" if collection of the loan is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or, (2) in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future.

Cash payments received on non-accrual loans are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected, or when it otherwise becomes well secured and in the process of collection.

The following table presents the amortized cost basis of loans on non-accrual status as of March 31, 2026, December 31, 2025 and March 31, 2025:

	March 31, 2026						December 31, 2025						March 31, 2025
	Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total Non-accrual		Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total Non-accrual		Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total Non-accrual
Commercial
Real estate owner occupied	$	1,131,000	$	3,334,000	$	4,465,000	$	1,131,000	$	2,896,000	$	4,027,000	$	—	$	545,000	$	545,000
Real estate non-owner occupied	1,229,000		60,000		1,289,000		1,285,000		61,000		1,346,000		—		61,000		61,000
Construction	—		—		—		—		8,000		8,000		—		17,000		17,000
C&I	572,000		1,563,000		2,135,000		1,297,000		617,000		1,914,000		1,348,000		595,000		1,943,000
Multifamily	1,760,000		—		1,760,000		—		—		—		—		17,000		17,000
Agriculture	—		276,000		276,000		—		441,000		441,000		—		111,000		111,000
Municipal	—		—		—		—		—		—		—		—		—
Residential
Term	115,000		5,088,000		5,203,000		115,000		4,078,000		4,193,000		—		2,944,000		2,944,000
Construction	—		—		—		—		—		—		—		—		—
Home equity
Revolving and term	202,000		858,000		1,060,000		242,000		703,000		945,000		—		415,000		415,000
Consumer	—		—		—		—		5,000		5,000		—		—		—
Total	$	5,009,000	$	11,179,000	$	16,188,000	$	4,070,000	$	8,809,000	$	12,879,000	$	1,348,000	$	4,705,000	$	6,053,000

Individually Analyzed Loans: IAL include loans with balances of $250,000 or more that have been placed into non-accrual or are loans identified by management as having characteristics that may impact ultimate collectibility and therefore merit individual analysis. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. If the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off.

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

	March 31, 2026						December 31, 2025						March 31, 2025
	Collateral Type						Collateral Type						Collateral Type
	Commercial Real Estate		Residential Real Estate		Other		Commercial Real Estate		Residential Real Estate		Other		Commercial Real Estate		Residential Real Estate		Other
Commercial
Real estate owner occupied	$	3,842,000	$	245,000	$	—	$	3,626,000	$	—	$	—	$	260,000	$	—	$	—
Real estate non-owner occupied	1,292,000		—		—		1,348,000		—		—		67,000		—		—
Construction	—		—		—		—		—		—		—		—		—
C&I	—		—		1,192,000		—		—		1,300,000		—		—		1,681,000
Multifamily	1,763,000		—		—		—		—		—		—		—		—
Agriculture	—		—		—		—		—		—		—		—		—
Municipal	—		—		—		—		—		—		—		—		—
Residential
Term	—		3,556,000		—		—		2,912,000		—		—		2,151,000		—
Construction	—		—		—		—		—		—		—		—		—
Home equity	—		—		—
Revolving and term	—		307,000		—		—		361,000		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
Total	$	6,897,000	$	4,108,000	$	1,192,000	$	4,974,000	$	3,273,000	$	1,300,000	$	327,000	$	2,151,000	$	1,681,000

Loan Modifications to Borrowers Experiencing Financial Difficulty: Loan modifications to borrowers experiencing financial difficulty may include interest rate reduction, term extension, payment deferral, principle forgiveness or a combination thereof. It is the intent to minimize future losses while providing borrowers with financial relief.

The following table represents loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the three months ended March 31, 2026:

Amortized Cost Basis
	Payment Deferral		Term Extension		Combination Payment Deferral and Term Extension		Combination Payment Deferral, Term Extension and Rate Mod		% of Total Class of Financing Receivable
Commercial
Real estate owner occupied	$	—	$	135,000	$	243,000	$	—	0.10	%
Real estate non-owner occupied	—		—		—		1,229,000		0.30	%
Construction	—		—		—		—		—	%
C&I	75,000		—		135,000		—		0.05	%
Multifamily	—		—		—		—		—	%
Agriculture	—		—		38,000		—		0.08	%
Municipal	—		—		—		—		—	%
Residential
Term	—		—		194,000		330,000		0.07	%
Construction	—		—		—		—		—	%
Home Equity
Revolving and term	—		—		306,000		—		0.21	%
Consumer	—		—		—		—		—	%
Total	$	75,000	$	135,000	$	916,000	$	1,559,000

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended March 31, 2026:

	Payment Deferral
	Financial Effect
Commercial
C&I	Temporary payment accommodation, payments deferred to end of loan.

	Term Extension
	Financial Effect
Commercial
Real estate owner occupied	Temporary payment accommodation, extended term 9 months.

	Combination Payment Deferral and Term Extension
	Financial Effect
Commercial
Real estate owner occupied	Temporary payment accommodation, payments deferred to end of loan.
C&I	Payments deferred for 3 months; term increased 3 months
Agriculture	Payments deferred for 3 months; term increased 3 months
Residential
Term	Temporary payment accommodation, payments deferred to end of loan.
Home Equity
Revolving and term	Temporary payment accommodation, payments deferred to end of loan.

	Combination Payment Deferral, Term Extension and Rate Modification
	Financial Effect
Commercial
Real estate non-owner occupied	Temporary payment and rate accommodations, payments deferred to end of loan.
Residential
Term	Temporary payment and rate accommodations, payments deferred to end of loan.

The following table represents loan modifications made to borrowers experiencing financial difficulty by modification type and class of financing receivable, during the three months ended March 31, 2025:

Amortized Cost Basis
	Payment Deferral		Term Extension		Rate Modification		Combination Payment Deferral and Term Extension		% of Total Class of Financing Receivable
Commercial
Real estate owner occupied	$	158,000	$	—	$	—	$	—	0.04	%
Real estate non-owner occupied	—		—		—		—		—	%
Construction	—		—		—		—		—	%
C&I	78,000		364,000		—		—		0.02	%
Multifamily	910,000		—		—		—		0.69	%
Agriculture	1,536,000		—		—		—		3.15	%
Municipal	—		—		—		—		—	%
Residential
Term	—		—		—		—		—	%
Construction	—		—		—		—		—	%
Home Equity
Revolving and term	—		—		—		—		—	%
Consumer	—		—		—		—		—	%
Total	$	2,682,000	$	364,000	$	—	$	—

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended March 31, 2025:

	Payment Deferral
	Financial Effect
Commercial
Real estate owner occupied	Temporary payment accommodation, payments deferred to end of loan.
C&I	Temporary payment accommodation, payments deferred to end of loan.
Multifamily	Temporary payment accommodation, payments deferred to end of loan.
Agriculture	Temporary payment accommodation, payments deferred to end of loan.

	Term Extension
	Financial Effect
Commercial
C&I	Temporary payment accommodation, extended term 6 months.

The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. In its monitoring, the Company considers an event of payment default to be a payment past due thirty days or more, and counts all such events even if subsequently cured.

The following tables depict the amortized cost basis of loans that were modified during the previous 12 months as of March 31, 2026 and 2025, that had an event of payment default at some point during the 12 month period:

	Amortized Cost Basis
As of March 31, 2026	Payment Deferral		Term Extension		Combination Payment Deferral and Term Extension		Combination Payment Deferral, Term Extension and Rate Modification
Commercial
Real estate owner occupied	$	—	$	—	$	318,000	$	—
Real Estate non-owner occupied	—		252,000		—		1,229,000
C&I	309,000		—		128,000		—
Agriculture	719,000		—		—		—
Residential
Term	—		—		194,000		330,000
Home Equity
Revolving and term	—		—		306,000		—
Total	$	1,028,000	$	252,000	$	946,000	$	1,559,000

	Amortized Cost Basis
As of March 31, 2025	Payment Deferral		Term Extension		Combination Payment Deferral and Term Extension
Commercial
C&I	$	—	$	11,000	$	170,000
Residential
Term	—		125,000		—
Total	$	—	$	136,000	$	170,000

The following table depicts the performance of loans that have been modified during the previous 12 months as of March 31, 2026:

	Payment Status (Amortized Cost Basis)
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Commercial
Real estate owner occupied	$	1,378,000	$	—	$	—	$	—
Real Estate non-owner occupied	1,656,000		—		—		—
C&I	1,696,000		—		—		197,000
Multifamily	4,043,000		—		—		—
Agriculture	724,000		—		—		211,000
Residential
Term	1,004,000		—		—		—
Home Equity
Revolving and term	306,000		—				—
Consumer	—		—		—		—
Total	$	10,807,000	$	—	$	—	$	408,000

The following table depicts the performance of loans that had been modified during the the previous 12 months as of March 31, 2025:

	Payment Status (Amortized Cost Basis)
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Commercial
Real estate owner occupied	$	792,000	$	—	$	—	$	—
Construction	—		—		—		—
C&I	619,000		—		—		—
Multifamily	910,000		—		—		—
Agriculture	1,536,000		—		—		—
Residential
Term	—		125,000		—		—
Home Equity
Revolving and term	—		—		—		—
Consumer	—		—		—		—
Total	$	3,857,000	$	125,000	$	—	$	—

Loans in Process of Foreclosure: As of March 31, 2026, there were eight mortgage loans collateralized by residential real estate with a total balance of $1,788,000; one home equity line of credit collateralized by residential real estate with a balance of $63,000; and one consumer loan collateralized by land with a balance of $7,000, in the process of foreclosure. There were also 13 commercial loans collateralized by either residential real estate or owner-occupied commercial real estate with a total balance of $6,436,000, in the process of foreclosure. This compares to seven mortgage loans collateralized by residential real estate with a total balance of $1,754,000; one home equity line of credit collateralized by residential real estate with a balance of $63,000; and seven commercial loans collateralized by either residential real estate or owner-occupied commercial real estate with a total balance of $3,826,000, in the process of foreclosure as of December 31, 2025; and four mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $1,208,000 as of March 31, 2025.