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Note 3 - Loans and Allowance for Credit Losses on Loans

6 Months Ended

Jun. 30, 2025

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(3)

Loans and Allowance for Credit Losses on Loans

Composition of loans by class follows:

(in thousands)	June 30, 2025		December 31, 2024

Commercial real estate - non-owner occupied	$	1,989,982	$	1,835,935
Commercial real estate - owner occupied		1,010,692		1,002,853
Total commercial real estate		3,000,674		2,838,788

Commercial and industrial - term		856,838		884,399
Commercial and industrial - lines of credit		634,305		554,255
Total commercial and industrial		1,491,143		1,438,654

Residential real estate - owner occupied		851,284		805,080
Residential real estate - non-owner occupied		390,784		382,744
Total residential real estate		1,242,068		1,187,824

Construction and land development		671,011		623,005
Home equity lines of credit		263,826		247,433
Consumer		140,715		144,644
Leases		14,563		15,514
Credits cards		26,273		24,540
Total loans (1)	$	6,850,273	$	6,520,402

(1) Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs.

Accrued interest receivable on loans, which is excluded from the amortized cost of loans, totaled $23 million at both June 30, 2025 and December 31, 2024, respectively, and was included in the condensed consolidated balance sheets.

Loans with carrying amounts of $3.65 billion and $3.48 billion were pledged to secure FHLB borrowing capacity at June 30, 2025 and December 31, 2024, respectively.

Loans to directors and their related interests, including loans to companies for which directors are principal owners and executive officers, totaled $91 million and $97 million as of June 30, 2025 and December 31, 2024, respectively.

ACL for Loans

The tables below reflects activity in the ACL for loans:

(in thousands) Three Months Ended June 30, 2025	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	14,616	$	654		$	-		$	8	$	15,278
Commercial real estate - owner occupied		11,839		195			(38	)		-		11,996
Total commercial real estate		26,455		849			(38	)		8		27,274

Commercial and industrial - term		21,677		(943	)		(82	)		25		20,677
Commercial and industrial - lines of credit		6,629		1,312			-			-		7,941
Total commercial and industrial		28,306		369			(82	)		25		28,618

Residential real estate - owner occupied		13,438		773			-			54		14,265
Residential real estate - non-owner occupied		4,487		103			(3	)		-		4,587
Total residential real estate		17,925		876			(3	)		54		18,852

Construction and land development		11,387		(253	)		-			-		11,134
Home equity lines of credit		1,280		63			-			-		1,343
Consumer		2,844		293			(377	)		117		2,877
Leases		341		49			-			-		390
Credit cards		276		4			(53	)		7		234
Total	$	88,814	$	2,250		$	(553	)	$	211	$	90,722

(in thousands) Six Months Ended June 30, 2025	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	13,935	$	1,317		$	-		$	26	$	15,278
Commercial real estate - owner occupied		10,192		1,842			(38	)		-		11,996
Total commercial real estate		24,127		3,159			(38	)		26		27,274

Commercial and industrial - term		21,284		(1,707	)		(342	)		1,442		20,677
Commercial and industrial - lines of credit		6,496		1,445			-			-		7,941
Total commercial and industrial		27,780		(262	)		(342	)		1,442		28,618

Residential real estate - owner occupied		14,468		(210	)		(50	)		57		14,265
Residential real estate - non-owner occupied		5,154		(564	)		(3	)		-		4,587
Total residential real estate		19,622		(774	)		(53	)		57		18,852

Construction and land development		10,981		153			-			-		11,134
Home equity lines of credit		1,277		76			(10	)		-		1,343
Consumer		2,531		696			(580	)		230		2,877
Leases		370		20			-			-		390
Credit cards		255		82			(144	)		41		234
Total	$	86,943	$	3,150		$	(1,167	)	$	1,796	$	90,722

(in thousands) Three Months Ended June 30, 2024	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	21,823	$	(8,808	)	$	-		$	17	$	13,032
Commercial real estate - owner occupied		11,230		(1,556	)		-			45		9,719
Total commercial real estate		33,053		(10,364	)		-			62		22,751

Commercial and industrial - term		13,916		7,478			(67	)		302		21,629
Commercial and industrial - lines of credit		6,258		(433	)		-			-		5,825
Total commercial and industrial		20,174		7,045			(67	)		302		27,454

Residential real estate - owner occupied		11,826		1,501			(7	)		5		13,325
Residential real estate - non-owner occupied		4,731		(483	)		-			-		4,248
Total residential real estate		16,557		1,018			(7	)		5		17,573

Construction and land development		7,459		2,570			-			-		10,029
Home equity lines of credit		1,666		(519	)		-			-		1,147
Consumer		1,500		1,108			(203	)		147		2,552
Leases		232		179			-			-		411
Credit cards		256		38			(70	)		14		238
Total	$	80,897	$	1,075		$	(347	)	$	530	$	82,155

(in thousands) Six Months Ended June 30, 2024	Beginning Balance		Provision for Credit Losses on Loans			Charge-offs			Recoveries		Ending Balance

Commercial real estate - non-owner occupied	$	22,133	$	(9,134	)	$	-		$	33	$	13,032
Commercial real estate - owner occupied		11,667		(1,997	)		-			49		9,719
Total commercial real estate		33,800		(11,131	)		-			82		22,751

Commercial and industrial - term		14,359		6,805			(90	)		555		21,629
Commercial and industrial - lines of credit		6,495		(874	)		-			204		5,825
Total commercial and industrial		20,854		5,931			(90	)		759		27,454

Residential real estate - owner occupied		9,316		4,010			(21	)		20		13,325
Residential real estate - non-owner occupied		4,282		(34	)		-			-		4,248
Total residential real estate		13,598		3,976			(21	)		20		17,573

Construction and land development		7,593		2,436			-			-		10,029
Home equity lines of credit		1,660		(515	)		-			2		1,147
Consumer		1,407		1,300			(413	)		258		2,552
Leases		220		191			-			-		411
Credit cards		242		62			(85	)		19		238
Total	$	79,374	$	2,250		$	(609	)	$	1,140	$	82,155

The following tables present the amortized cost basis of non-performing loans and the amortized cost basis of loans on non-accrual status for which there was no related ACL losses:

	Non-accrual Loans				Past Due 90-Days-
(in thousands)	With No		Total		or-More and Still
June 30, 2025	Recorded ACL		Non-accrual		Accruing Interest

Commercial real estate - non-owner occupied	$	—	$	4,104	$	162
Commercial real estate - owner occupied		434		2,702		—
Total commercial real estate		434		6,806		162

Commercial and industrial - term		302		1,133		3
Commercial and industrial - lines of credit		—		450		20
Total commercial and industrial		302		1,583		23

Residential real estate - owner occupied		252		5,848		—
Residential real estate - non-owner occupied		—		1,548		193
Total residential real estate		252		7,396		193

Construction and land development		1,361		1,361		—
Home equity lines of credit		—		—		—
Consumer		—		374		—
Leases		—		—		—
Credit cards		—		130		—
Total	$	2,349	$	17,650	$	378

	Non-accrual Loans				Past Due 90-Days-
(in thousands)	With No		Total		or-More and Still
December 31, 2024	Recorded ACL		Non-accrual		Accruing Interest

Commercial real estate - non-owner occupied	$	4,409	$	5,221	$	—
Commercial real estate - owner occupied		434		1,231		73
Total commercial real estate		4,843		6,452		73

Commercial and industrial - term		3,828		4,903		95
Commercial and industrial - lines of credit		—		—		19
Total commercial and industrial		3,828		4,903		114

Residential real estate - owner occupied		371		7,168		—
Residential real estate - non-owner occupied		—		2,451		39
Total residential real estate		371		9,619		39

Construction and land development		—		311		—
Home equity lines of credit		—		70		91
Consumer		—		372		—
Leases		—		—		—
Credit cards		—		—		170
Total	$	9,042	$	21,727	$	487

For the three and six month periods ended June 30, 2025 and 2024, the amount of accrued interest income previously recorded as revenue and subsequently reversed due to the change in accrual status was immaterial.

For the three and six month periods ended June 30, 2025 and 2024, no interest income was recognized on loans on non-accrual status.

The following table presents the amortized cost basis and ACL allocated for collateral dependent loans, which are individually evaluated to determine expected credit losses:

(in thousands) June 30, 2025	Real Estate		Accounts Receivable / Equipment		Other		Total		ACL Allocation

Commercial real estate - non-owner occupied	$	10,611	$	-	$	-	$	10,611	$	1,760
Commercial real estate - owner occupied		4,963		-		-		4,963		844
Total commercial real estate		15,574		-		-		15,574		2,604

Commercial and industrial - term		869		366		76		1,311		715
Commercial and industrial - lines of credit		320		200		451		971		582
Total commercial and industrial		1,189		566		527		2,282		1,297

Residential real estate - owner occupied		5,257		-		-		5,257		1,268
Residential real estate - non-owner occupied		2,028		-		-		2,028		753
Total residential real estate		7,285		-		-		7,285		2,021

Construction and land development		1,361		-		-		1,361		-
Home equity lines of credit		-		-		-		-		-
Consumer		-		-		355		355		26
Leases		-		-		-		-		-
Credit cards		-		-		-		-		-
Total collateral dependent loans	$	25,409	$	566	$	882	$	26,857	$	5,948

(in thousands) December 31, 2024	Real Estate		Accounts Receivable / Equipment		Other		Total		ACL Allocation

Commercial real estate - non-owner occupied	$	11,699	$	-	$	-	$	11,699	$	1,075
Commercial real estate - owner occupied		3,547		-		-		3,547		764
Total commercial real estate		15,246		-		-		15,246		1,839

Commercial and industrial - term		740		4,062		76		4,878		516
Commercial and industrial - lines of credit		349		200		-		549		139
Total commercial and industrial		1,089		4,262		76		5,427		655

Residential real estate - owner occupied		6,514		-		-		6,514		448
Residential real estate - non-owner occupied		2,974		-		-		2,974		852
Total residential real estate		9,488		-		-		9,488		1,300

Construction and land development		311		-		-		311		20
Home equity lines of credit		70		-		-		70		-
Consumer		-		-		356		356		34
Leases		-		-		-		-		-
Credit cards		-		-		-		-		-
Total collateral dependent loans	$	26,204	$	4,262	$	432	$	30,898	$	3,848

The following tables present the aging of contractually past due loans by portfolio class:

(in thousands)			30-59 days		60-89 days		90 or more		Total Past		Total
June 30, 2025	Current		Past Due		Past Due		days Past Due		Due Loans		Loans

Commercial real estate - non-owner occupied	$	1,981,314	$	1,274	$	3,128	$	4,266	$	8,668	$	1,989,982
Commercial real estate - owner occupied		1,008,000		490		222		1,980		2,692		1,010,692
Total commercial real estate		2,989,314		1,764		3,350		6,246		11,360		3,000,674

Commercial and industrial - term		854,886		297		518		1,137		1,952		856,838
Commercial and industrial - lines of credit		633,849		436		—		20		456		634,305
Total commercial and industrial		1,488,735		733		518		1,157		2,408		1,491,143

Residential real estate - owner occupied		834,138		8,780		3,847		4,519		17,146		851,284
Residential real estate - non-owner occupied		388,400		472		208		1,704		2,384		390,784
Total residential real estate		1,222,538		9,252		4,055		6,223		19,530		1,242,068

Construction and land development		669,650		—		—		1,361		1,361		671,011
Home equity lines of credit		262,962		286		578		—		864		263,826
Consumer		139,732		456		156		371		983		140,715
Leases		14,563		—		—		—		—		14,563
Credit cards		25,919		183		41		130		354		26,273
Total	$	6,813,413	$	12,674	$	8,698	$	15,488	$	36,860	$	6,850,273

(in thousands)			30-59 days		60-89 days		90 or more		Total Past		Total
December 31, 2024	Current		Past Due		Past Due		days Past Due		Due Loans		Loans

Commercial real estate - non-owner occupied	$	1,831,135	$	168	$	4,410	$	222	$	4,800	$	1,835,935
Commercial real estate - owner occupied		1,001,351		648		715		139		1,502		1,002,853
Total commercial real estate		2,832,486		816		5,125		361		6,302		2,838,788

Commercial and industrial - term		879,597		103		2,740		1,959		4,802		884,399
Commercial and industrial - lines of credit		552,655		59		1,522		19		1,600		554,255
Total commercial and industrial		1,432,252		162		4,262		1,978		6,402		1,438,654

Residential real estate - owner occupied		789,286		7,737		3,176		4,881		15,794		805,080
Residential real estate - non-owner occupied		381,177		628		56		883		1,567		382,744
Total residential real estate		1,170,463		8,365		3,232		5,764		17,361		1,187,824

Construction and land development		622,614		391		—		—		391		623,005
Home equity lines of credit		246,700		424		194		115		733		247,433
Consumer		143,796		470		69		309		848		144,644
Leases		15,514		—		—		—		—		15,514
Credit cards		24,122		220		27		171		418		24,540
Total	$	6,487,947	$	10,848	$	12,909	$	8,698	$	32,455	$	6,520,402

Loan Risk Ratings

Consistent with regulatory guidance, Bancorp categorizes loans into credit risk rating categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends. Pass-rated loans include all risk-rated loans other than those classified as OAEM, substandard, and doubtful, which are defined below:

OAEM – Loans classified as OAEM have potential weaknesses requiring management's heightened attention. These potential weaknesses may result in deterioration of repayment prospects for the loan or of Bancorp's credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the paying capacity of the obligor or of collateral pledged, if any. Loans so classified have well-defined weaknesses that jeopardize ultimate repayment of the debt. Default is a distinct possibility if the deficiencies are not corrected.

Substandard non-performing – Loans classified as substandard non-performing have all the characteristics of substandard loans and have been placed on non-accrual status. Loans are usually placed on non-accrual status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 days or more.

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 repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. A loan is typically charged off once it is classified as doubtful.

Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. Bancorp has elected not to disclose revolving loans that have converted to term loans, as activity relating to this disclosure, which is included in the tables is currently immaterial to Bancorp’s loan portfolio and is expected to be in the future.

As of June 30, 2025, the risk rating of loans based on year of origination was as follows:

																	Revolving
																	loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year																amortized
June 30, 2025	2025		2024			2023			2022			2021			Prior		cost basis		Total

Commercial real estate - non-owner occupied:
Risk rating
Pass	$	331,158	$	365,753		$	296,719		$	348,590		$	275,647		$	290,424	$	27,561	$	1,935,852
OAEM		4,974		2,285			11,782			2,442			10,548			14,608		-		46,639
Substandard		1,534		1,538			-			-			-			217		98		3,387
Substandard non-performing		-		263			-			-			-			3,841		-		4,104
Doubtful		-		-			-			-			-			-		-		-
Total Commercial real estate non-owner occupied	$	337,666	$	369,839		$	308,501		$	351,032		$	286,195		$	309,090	$	27,659	$	1,989,982
Current period gross charge offs	$	-	$	-		$	-		$	-		$	-		$	-	$	-	$	-

Commercial real estate - owner occupied:
Risk rating
Pass	$	95,290	$	109,674		$	174,139		$	157,815		$	168,261		$	253,893	$	16,417	$	975,489
OAEM		35		5,821			188			1,439			1,816			3,290		-		12,589
Substandard		1,100		6,057			5,636			3,400			3,507			212		-		19,912
Substandard non-performing		-		674			1,206			100			722			-		-		2,702
Doubtful		-		-			-			-			-			-		-		-
Total Commercial real estate owner occupied	$	96,425	$	122,226		$	181,169		$	162,754		$	174,306		$	257,395	$	16,417	$	1,010,692
Current period gross charge offs	$	-	$	-		$	-		$	(38	)	$	-		$	-	$	-	$	(38	)

Commercial and industrial - term:
Risk rating
Pass	$	136,019	$	231,284		$	151,842		$	164,766		$	103,246		$	52,988	$	-	$	840,145
OAEM		958		8,041			135			1,187			8			13		-		10,342
Substandard		498		-			133			1,216			3,292			79		-		5,218
Substandard non-performing		3		292			332			12			-			494		-		1,133
Doubtful		-		-			-			-			-			-		-		-
Total Commercial and industrial - term	$	137,478	$	239,617		$	152,442		$	167,181		$	106,546		$	53,574	$	-	$	856,838
Current period gross charge offs	$	-	$	(52	)	$	(240	)	$	(46	)	$	(4	)	$	-	$	-	$	(342	)

Commercial and industrial - lines of credit
Risk rating
Pass	$	55,484	$	122,868		$	8,088		$	1,782		$	2,206		$	2,464	$	406,438	$	599,330
OAEM		-		2,364			-			-			-			-		8,787		11,151
Substandard		-		-			-			-			-			-		23,373		23,373
Substandard non-performing		451		-			-			-			-			-		-		451
Doubtful		-		-			-			-			-			-		-		-
Total Commercial and industrial - lines of credit	$	55,935	$	125,232		$	8,088		$	1,782		$	2,206		$	2,464	$	438,598	$	634,305
Current period gross charge offs	$	-	$	-		$	-		$	-		$	-		$	-	$	-	$	-

																		Revolving
																		loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year																	amortized
June 30, 2025	2025			2024			2023			2022			2021		Prior			cost basis			Total

Residential real estate - owner occupied
Risk rating
Pass	$	89,613		$	154,664		$	147,131		$	160,090		$	150,155	$	143,209		$	-		$	844,862
OAEM		154			-			-			-			80		-			-			234
Substandard		-			-			-			11			-		328			-			339
Substandard non-performing		248			754			2,936			1,201			171		539			-			5,849
Doubtful		-			-			-			-			-		-			-			-
Total Residential real estate - owner occupied	$	90,015		$	155,418		$	150,067		$	161,302		$	150,406	$	144,076		$	-		$	851,284
Current period gross charge offs	$	-		$	-		$	(45	)	$	-		$	-	$	(5	)	$	-		$	(50	)

Residential real estate - non-owner occupied
Risk rating
Pass	$	45,967		$	70,847		$	61,169		$	67,682		$	65,828	$	77,150		$	-		$	388,643
OAEM		-			-			-			-			-		483			-			483
Substandard		-			-			-			-			-		110			-			110
Substandard non-performing		-			150			1,130			159			-		109			-			1,548
Doubtful		-			-			-			-			-		-			-			-
Total Residential real estate - non-owner occupied	$	45,967		$	70,997		$	62,299		$	67,841		$	65,828	$	77,852		$	-		$	390,784
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-	$	(3	)	$	-		$	(3	)

Construction and land development
Risk rating
Pass	$	81,345		$	282,901		$	224,887		$	55,027		$	6,765	$	3,267		$	10,783		$	664,975
OAEM		-			3,681			-			-			-		-			-			3,681
Substandard		-			-			-			-			-		-			999			999
Substandard non-performing		-			-			1,356			-			-		-			-			1,356
Doubtful		-			-			-			-			-		-			-			-
Total Construction and land development	$	81,345		$	286,582		$	226,243		$	55,027		$	6,765	$	3,267		$	11,782		$	671,011
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-	$	-		$	-		$	-

Home equity lines of credit
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-	$	-		$	263,037		$	263,037
OAEM		-			-			-			-			-		-			-			-
Substandard		-			-			-			-			-		-			789			789
Substandard non-performing		-			-			-			-			-		-			-			-
Doubtful		-			-			-			-			-		-			-			-
Total Home equity lines of credit	$	-		$	-		$	-		$	-		$	-	$	-		$	263,826		$	263,826
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-	$	-		$	(10	)	$	(10	)

Consumer
Risk rating
Pass	$	12,326		$	17,642		$	15,006		$	10,419		$	4,939	$	1,164		$	78,846		$	140,342
OAEM		-			-			-			-			-		-			-			-
Substandard		-			-			-			-			-		-			-			-
Substandard non-performing		-			151			160			20			22		20			-			373
Doubtful		-			-			-			-			-		-			-			-
Total Consumer	$	12,326		$	17,793		$	15,166		$	10,439		$	4,961	$	1,184		$	78,846		$	140,715
Current period gross charge offs	$	(469	)	$	(30	)	$	(57	)	$	(2	)	$	-	$	(22	)	$	-		$	(580	)

																			Revolving
																			loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year																		amortized
June 30, 2025	2025			2024			2023			2022			2021			Prior			cost basis			Total

Leases
Risk rating
Pass	$	2,250		$	4,439		$	4,541		$	1,340		$	1,151		$	320		$	-		$	14,041
OAEM		-			-			-			-			-			-			-			-
Substandard		-			17			-			477			-			28			-			522
Substandard non-performing		-			-			-			-			-			-			-			-
Doubtful		-			-			-			-			-			-			-			-
Total Leases	$	2,250		$	4,456		$	4,541		$	1,817		$	1,151		$	348		$	-		$	14,563
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Credit cards
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-		$	-		$	26,143		$	26,143
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		-			-			-			-			-			-			130			130
Doubtful		-			-			-			-			-			-			-			-
Total Credit cards	$	-		$	-		$	-		$	-		$	-		$	-		$	26,273		$	26,273
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	(144	)	$	(144	)

Total loans
Risk rating
Pass	$	849,452		$	1,360,072		$	1,083,522		$	967,511		$	778,198		$	824,879		$	829,226		$	6,692,860
OAEM		6,121			22,192			12,105			5,068			12,452			18,394			8,787			85,119
Substandard		3,132			7,612			5,764			5,104			6,799			974			25,259			54,644
Substandard non-performing		702			2,282			7,125			1,492			916			5,003			130			17,650
Doubtful		-			-			-			-			-			-			-			-
Total Loans	$	859,407		$	1,392,158		$	1,108,516		$	979,175		$	798,365		$	849,250		$	863,402		$	6,850,273
Current period gross charge offs	$	(469	)	$	(82	)	$	(342	)	$	(86	)	$	(4	)	$	(30	)	$	(154	)	$	(1,167	)

As of December 31, 2024, the risk rating of loans based on year of origination was as follows:

																	Revolving
																	loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year																amortized
December 31, 2024	2024			2023			2022			2021			2020		Prior		cost basis		Total

Commercial real estate - non-owner occupied:
Risk rating
Pass	$	416,310		$	293,890		$	402,081		$	291,741		$	199,039	$	157,303	$	28,584	$	1,788,948
OAEM		10,480			1,533			-			10,709			1,664		13,191		-		37,577
Substandard		1,546			-			2,320			-			-		225		98		4,189
Substandard non-performing		269			-			-			-			-		4,952		-		5,221
Doubtful		-			-			-			-			-		-		-		-
Total Commercial real estate non-owner occupied	$	428,605		$	295,423		$	404,401		$	302,450		$	200,703	$	175,671	$	28,682	$	1,835,935
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-	$	-	$	-	$	-

Commercial real estate - owner occupied:
Risk rating
Pass	$	133,404		$	163,452		$	172,933		$	174,638		$	156,955	$	139,919	$	22,012	$	963,313
OAEM		6,292			273			1,145			1,856			715		3,385		-		13,666
Substandard		7,192			9,923			3,656			3,643			-		229		-		24,643
Substandard non-performing		434			-			-			731			66		-		-		1,231
Doubtful		-			-			-			-			-		-		-		-
Total Commercial real estate owner occupied	$	147,322		$	173,648		$	177,734		$	180,868		$	157,736	$	143,533	$	22,012	$	1,002,853
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-	$	-	$	-	$	-

Commercial and industrial - term:
Risk rating
Pass	$	312,854		$	173,383		$	198,754		$	120,056		$	34,013	$	30,903	$	-	$	869,963
OAEM		2,679			1,813			833			104			28		-		-		5,457
Substandard		496			311			-			3,036			10		223		-		4,076
Substandard non-performing		3,822			349			343			-			302		87		-		4,903
Doubtful		-			-			-			-			-		-		-		-
Total Commercial and industrial - term	$	319,851		$	175,856		$	199,930		$	123,196		$	34,353	$	31,213	$	-	$	884,399
Current period gross charge offs	$	(414	)	$	(250	)	$	(6	)	$	(78	)	$	-	$	-	$	-	$	(748	)

Commercial and industrial - lines of credit
Risk rating
Pass	$	119,206		$	11,181		$	3,967		$	2,553		$	295	$	2,654	$	372,866	$	512,722
OAEM		7,448			-			-			-			-		-		10,750		18,198
Substandard		-			-			-			-			-		-		23,335		23,335
Substandard non-performing		-			-			-			-			-		-		-		-
Doubtful		-			-			-			-			-		-		-		-
Total Commercial and industrial - lines of credit	$	126,654		$	11,181		$	3,967		$	2,553		$	295	$	2,654	$	406,951	$	554,255
Current period gross charge offs	$	-		$	-		$	(555	)	$	-		$	-	$	-	$	-	$	(555	)

																			Revolving
																			loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year																		amortized
December 31, 2024	2024			2023			2022			2021			2020			Prior			cost basis			Total

Residential real estate - owner occupied
Risk rating
Pass	$	161,257		$	154,799		$	166,127		$	159,449		$	77,516		$	78,169		$	-		$	797,317
OAEM		158			-			-			83			-			-			-			241
Substandard		-			-			12			-			-			342			-			354
Substandard non-performing		1,028			3,737			1,400			320			9			674			-			7,168
Doubtful		-			-			-			-			-			-			-			-
Total Residential real estate - owner occupied	$	162,443		$	158,536		$	167,539		$	159,852		$	77,525		$	79,185		$	-		$	805,080
Current period gross charge offs	$	-		$	(349	)	$	-		$	-		$	-		$	(7	)	$	-		$	(356	)

Residential real estate - non-owner occupied
Risk rating
Pass	$	80,717		$	66,330		$	72,580		$	70,585		$	41,874		$	47,578		$	-		$	379,664
OAEM		-			-			-			-			-			514			-			514
Substandard		-			-			-			-			-			115			-			115
Substandard non-performing		739			1,332			214			17			-			149			-			2,451
Doubtful		-			-			-			-			-			-			-			-
Total Residential real estate - non-owner occupied	$	81,456		$	67,662		$	72,794		$	70,602		$	41,874		$	48,356		$	-		$	382,744
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Construction and land development
Risk rating
Pass	$	237,785		$	234,782		$	115,429		$	8,381		$	1,273		$	3,569		$	15,420		$	616,639
OAEM		3,680			1,376			-			-			-			-			-			5,056
Substandard		-			-			-			-			-			-			999			999
Substandard non-performing		311			-			-			-			-			-			-			311
Doubtful		-			-			-			-			-			-			-			-
Total Construction and land development	$	241,776		$	236,158		$	115,429		$	8,381		$	1,273		$	3,569		$	16,419		$	623,005
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Home equity lines of credit
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-		$	-		$	246,336		$	246,336
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			1,027			1,027
Substandard non-performing		-			-			-			-			-			-			70			70
Doubtful		-			-			-			-			-			-			-			-
Total Home equity lines of credit	$	-		$	-		$	-		$	-		$	-		$	-		$	247,433		$	247,433
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	(107	)	$	(107	)

Consumer
Risk rating
Pass	$	22,895		$	18,200		$	12,822		$	6,294		$	1,095		$	1,023		$	81,943		$	144,272
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		135			113			66			13			17			28			-			372
Doubtful		-			-			-			-			-			-			-			-
Total Consumer	$	23,030		$	18,313		$	12,888		$	6,307		$	1,112		$	1,051		$	81,943		$	144,644
Current period gross charge offs	$	(640	)	$	(19	)	$	(12	)	$	(41	)	$	(9	)	$	(45	)	$	(19	)	$	(785	)

																			Revolving
																			loans
(in thousands)	Term Loans Amortized Cost Basis by Origination Year																		amortized
December 31, 2024	2024			2023			2022			2021			2020			Prior			cost basis			Total

Leases
Risk rating
Pass	$	4,935		$	5,439		$	1,864		$	1,462		$	597		$	3		$	-		$	14,300
OAEM		-			-			-			-			-			-			-			-
Substandard		31			-			586			536			61			-			-			1,214
Substandard non-performing		-			-			-			-			-			-			-			-
Doubtful		-			-			-			-			-			-			-			-
Total Leases	$	4,966		$	5,439		$	2,450		$	1,998		$	658		$	3		$	-		$	15,514
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-

Credit cards
Risk rating
Pass	$	-		$	-		$	-		$	-		$	-		$	-		$	24,540		$	24,540
OAEM		-			-			-			-			-			-			-			-
Substandard		-			-			-			-			-			-			-			-
Substandard non-performing		-			-			-			-			-			-			-			-
Doubtful		-			-			-			-			-			-			-			-
Total Credit cards	$	-		$	-		$	-		$	-		$	-		$	-		$	24,540		$	24,540
Current period gross charge offs	$	-		$	-		$	-		$	-		$	-		$	-		$	(225	)	$	(225	)

Total loans
Risk rating
Pass	$	1,489,363		$	1,121,456		$	1,146,557		$	835,159		$	512,657		$	461,121		$	791,701		$	6,358,014
OAEM		30,737			4,995			1,978			12,752			2,407			17,090			10,750			80,709
Substandard		9,265			10,234			6,574			7,215			71			1,134			25,459			59,952
Substandard non-performing		6,738			5,531			2,023			1,081			394			5,890			70			21,727
Doubtful		-			-			-			-			-			-			-			-
Total Loans	$	1,536,103		$	1,142,216		$	1,157,132		$	856,207		$	515,529		$	485,235		$	827,980		$	6,520,402
Current period gross charge offs	$	(1,054	)	$	(618	)	$	(573	)	$	(119	)	$	(9	)	$	(52	)	$	(351	)	$	(2,776	)

For certain loan classes, such as credit cards, credit quality is evaluated based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in credit cards based on payment activity:

	June 30,		December 31,
(in thousands)	2025		2024

Credit cards
Performing	$	26,143	$	24,370
Non-performing		130		170
Total credit cards	$	26,273	$	24,540

Bancorp had $717,000 and $569,000, respectively, in residential real estate loans for which formal foreclosure proceedings were in process at June 30, 2025 and December 31, 2024.

Modifications to Borrowers Experiencing Financial Difficulty

During the three and six month periods ended June 30, 2025 and 2024, there were no modifications made to loans for borrowers experiencing financial difficulty and there were no payment defaults of existing modified loans within 12 months following modification. Default is determined at 90 days or more past due, charge off, or foreclosure.