Loans, Lease Receivables, and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2026

Receivables [Abstract]

Loan and Lease Receivables Composition

Loan and lease receivables consist of the following:


		March 31, 2026				December 31, 2025
		(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied		$	306,593			$	293,706
Commercial real estate — non-owner occupied			925,425				885,870
Construction and land development			224,866				248,560
Multi-family			577,271				571,468
1-4 family			61,332				60,661
Total commercial real estate			2,095,487				2,060,265
Commercial and industrial			1,358,413				1,273,997
Consumer and other			47,223				40,965
Total gross loans and leases receivable			3,501,123				3,375,227
Less:
Allowance for credit losses			36,631				35,877
Deferred loan fees and costs, net			2,220				1,986
Loans and leases receivable, net		$	3,462,272			$	3,337,364

Schedule of Loans Transferred and Purchased

Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market and participation interests in other, non-SBA originated loans.


March 31, 2026
(In Thousands)		Owner Occupied				Non-Owner Occupied				Construction and Land Development				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
SBA
Loans transferred to third parties		$	—			$	—			$	—			$	—			$	—			$	4,593			$	—			$	4,593
Outstanding balance of loans serviced			—				—				—				—				—				82,689				—				82,689
Ownership of transferred loans			—				—				—				—				—				24,522				—				24,522
Non-SBA
Loans transferred to third parties		$	—			$	—			$	9,515			$	539			$	—			$	32,985			$	—			$	43,039
Outstanding balance of loans serviced			11,958				157,698				47,081				151,750				—				40,111				—				408,598
Ownership of transferred loans			6,833				218,069				75,309				137,887				—				40,933				—				479,031
Loan participations purchased			—				—				—				9,774				—				6,400				—				16,174


March 31, 2025
(In Thousands)		Owner Occupied				Non-Owner Occupied				Construction and Land Development				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
SBA
Loans transferred to third parties		$	—			$	—			$	—			$	—			$	—			$	8,652			$	—			$	8,652
Outstanding balance of loans serviced			—				—				—				—				—				86,584				—				86,584
Ownership of transferred loans			—				—				—				—				—				25,543				—				25,543
Non-SBA
Loans transferred to third parties		$	—			$	16,016			$	23,287			$	280			$	—			$	6,282			$	—			$	45,865
Outstanding balance of loans serviced			18,225				165,479				56,399				127,614				—				18,205				—				385,922
Ownership of transferred loans			10,169				232,000				50,032				128,057				—				22,977				—				443,235
Loan participations purchased			—				—				7,023				—				—				—				—				7,023

Financing Receivable by Credit Quality Indicators

The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-accrual loans by class of receivable, and considering certain credit quality indicators:


March 31, 2026		Term Loans Amortized Cost Basis by Origination Year
(In Thousands)		2026		2025		2024		2023		2022		Prior		Revolving Loans Amortized Cost Basis		Total		Category as a % of total portfolio
Commercial real estate — owner occupied
Category
I		$20,596		$64,201		$16,650		$31,653		$34,208		$119,274		$295		286,877		93.6%
II		—		—		—		8,924		—		—		—		8,924		2.9%
III		—		—		2,180		—		—		8,612		—		10,792		3.5%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$20,596		$64,201		$18,830		$40,577		$34,208		$127,886		$295		$306,593		100.0%
Commercial real estate — non-owner occupied
Category
I		$45,547		$96,425		$80,847		$98,950		$88,556		$442,708		$33,992		$887,025		95.9%
II		—		—		—		—		—		6,863		—		6,863		0.7%
III		—		—		—		9,216		—		22,321		—		31,537		3.4%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$45,547		$96,425		$80,847		$108,166		$88,556		$471,892		$33,992		$925,425		100.0%
Construction and land development
Category
I		$5,648		$39,423		$60,615		$63,239		$10,410		$5,018		$23,354		$207,707		92.3%
II		—		—		—		—		—		—		—		—		0.0%
III		—		—		—		5,735		—		—		—		5,735		2.6%
IV		—		—		—		—		454		10,970		—		11,424		5.1%
Total		$5,648		$39,423		$60,615		$68,974		$10,864		$15,988		$23,354		$224,866		100.0%
Multi-family
Category
I		$430		$56,909		$18,323		$119,670		$92,955		$271,548		$2,640		$562,475		97.4%
II		—		—		—		1,527		7,277		776		—		9,580		1.7%
III		—		—		—		—		—		1,012		—		1,012		0.2%
IV		—		—		—		1,678		—		2,526		—		4,204		0.7%
Total		$430		$56,909		$18,323		$122,875		$100,232		$275,862		$2,640		$577,271		100.0%
1-4 family
Category
I		$1,929		$18,032		$7,019		$1,403		$4,194		$5,212		$23,543		$61,332		100.0%
II		—		—		—		—		—		—		—		—		0.0%
III		—		—		—		—		—		—		—		—		0.0%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$1,929		$18,032		$7,019		$1,403		$4,194		$5,212		$23,543		$61,332		100.0%
Commercial and industrial
Category
I		$93,147		$234,188		$157,990		$113,623		$45,005		$65,858		$497,758		$1,207,569		88.9%
II		—		659		14,375		6,596		5,041		2,659		12,139		41,469		3.1%
III		—		217		8,689		17,800		4,368		2,590		50,836		84,500		6.2%
IV		—		789		2,123		3,027		7,454		3,720		7,762		24,875		1.8%
Total		$93,147		$235,853		$183,177		$141,046		$61,868		$74,827		$568,495		$1,358,413		100.0%
Consumer and other
Category
I		$11,626		$7,563		$5,147		$2,450		$4,273		$10,162		$6,002		$47,223		100.0%
II		—		—		—		—		—		—		—		—		0.0%
III		—		—		—		—		—		—		—		—		0.0%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$11,626		$7,563		$5,147		$2,450		$4,273		$10,162		$6,002		$47,223		100.0%
Total Loans
Category
I		$178,923		$516,741		$346,591		$430,988		$279,601		$919,780		$587,584		$3,260,208		93.1%
II		—		659		14,375		17,047		12,318		10,298		12,139		66,836		1.9%
III		—		217		10,869		32,751		4,368		34,535		50,836		133,576		3.8%
IV		—		789		2,123		4,705		7,908		17,216		7,762		40,503		1.2%
Total		$178,923		$518,406		$373,958		$485,491		$304,195		$981,829		$658,321		$3,501,123		100.0%


December 31, 2025		Term Loans Amortized Cost Basis by Origination Year
(In Thousands)		2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total		Category as a % of total portfolio
Commercial real estate — owner occupied
Category
I		$65,752		$20,422		$39,698		$32,186		$30,251		$92,981		$295		$281,585		95.9%
II		—		—		2,011		—		—		—		—		2,011		0.7%
III		—		2,197		—		—		—		7,913		—		10,110		3.4%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$65,752		$22,619		$41,709		$32,186		$30,251		$100,894		$295		$293,706		100.0%
Commercial real estate — non-owner occupied
Category
I		$85,103		$81,087		$108,308		$89,226		$63,803		$392,720		$34,236		$854,483		96.4%
II		—		—		—		—		—		6,863		—		6,863		0.8%
III		—		—		—		—		716		23,808		—		24,524		2.8%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$85,103		$81,087		$108,308		$89,226		$64,519		$423,391		$34,236		$885,870		100.0%
Construction and land development
Category
I		$35,887		$73,179		$78,264		$10,278		$91		$5,043		$25,482		$228,224		91.8%
II		—		—		—		—		—		—		—		—		0.0%
III		—		—		5,755		—		—		—		—		5,755		2.3%
IV		—		—		—		454		8,155		5,972		—		14,581		5.9%
Total		$35,887		$73,179		$84,019		$10,732		$8,246		$11,015		$25,482		$248,560		100.0%
Multi-family
Category
I		$57,113		$18,231		$103,795		$93,280		$61,620		$211,473		$2,644		$548,156		95.9%
II		—		—		1,530		7,309		—		782		—		9,621		1.7%
III		—		—		—		—		8,380		1,019		—		9,399		1.6%
IV		—		—		1,714		—		2,578		—		—		4,292		0.8%
Total		$57,113		$18,231		$107,039		$100,589		$72,578		$213,274		$2,644		$571,468		100.0%
1-4 family
Category
I		$18,249		$7,043		$1,416		$4,432		$2,036		$3,470		$24,015		$60,661		100.0%
II		—		—		—		—		—		—		—		—		0.0%
III		—		—		—		—		—		—		—		—		0.0%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$18,249		$7,043		$1,416		$4,432		$2,036		$3,470		$24,015		$60,661		100.0%
Commercial and industrial
Category
I		$240,914		$178,507		$138,504		$52,149		$35,514		$31,754		$452,160		$1,129,502		88.6%
II		568		14,119		10,997		5,948		25		2,797		24,140		58,594		4.6%
III		499		8,617		10,409		4,656		787		1,745		34,206		60,919		4.8%
IV		447		1,845		3,384		7,644		302		4,083		7,277		24,982		2.0%
Total		$242,428		$203,088		$163,294		$70,397		$36,628		$40,379		$517,783		$1,273,997		100.0%
Consumer and other
Category
I		$7,790		$5,715		$4,167		$4,926		$1,717		$10,423		$6,227		$40,965		100.0%
II		—		—		—		—		—		—		—		—		0.0%
III		—		—		—		—		—		—		—		—		0.0%
IV		—		—		—		—		—		—		—		—		0.0%
Total		$7,790		$5,715		$4,167		$4,926		$1,717		$10,423		$6,227		$40,965		100.0%
Total Loans
Category
I		$510,808		$384,184		$474,152		$286,477		$195,032		$747,864		$545,059		$3,143,576		93.1%
II		568		14,119		14,538		13,257		25		10,442		24,140		77,089		2.3%
III		499		10,814		16,164		4,656		9,883		34,485		34,206		110,707		3.3%
IV		447		1,845		5,098		8,098		11,035		10,055		7,277		43,855		1.3%
Total		$512,322		$410,962		$509,952		$312,488		$215,975		$802,846		$610,682		$3,375,227		100.0%

Delinquency Aging of Loan and Lease Portfolio by Class of Receivable

The delinquency aging of the loan and lease portfolio by class of receivable was as follows:


		March 31, 2026
		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days Past Due				Total Past Due				Current				Total Loans and Leases
		(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied		$	—			$	—			$	—			$	—			$	306,593			$	306,593
Non-owner occupied			—				—				—				—				925,425				925,425
Construction and land development			—				—				11,424				11,424				213,442				224,866
Multi-family			—				—				—				—				577,271				577,271
1-4 family			211				—				—				211				61,121				61,332
Commercial and industrial			2,745				519				16,277				19,541				1,338,872				1,358,413
Consumer and other			5				—				—				5				47,218				47,223
Total		$	2,961			$	519			$	27,701			$	31,181			$	3,469,942			$	3,501,123
Percent of portfolio			0.08	%			0.01	%			0.79	%			0.88	%			99.12	%			100.00	%


		December 31, 2025
		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days Past Due				Total Past Due				Current				Total Loans and Leases
		(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied		$	—			$	—			$	—			$	—			$	293,706			$	293,706
Non-owner occupied			—				—				—				—				885,870				885,870
Construction and land development			14,581				—				—				14,581				233,979				248,560
Multi-family			—				—				—				—				571,468				571,468
1-4 family			—				—				—				—				60,661				60,661
Commercial and industrial			3,116				963				15,229				19,308				1,254,689				1,273,997
Consumer and other			50				—				—				50				40,915				40,965
Total		$	17,747			$	963			$	15,229			$	33,939			$	3,341,288			$	3,375,227
Percent of portfolio			0.53	%			0.03	%			0.45	%			1.01	%			98.99	%			100.00	%

Schedule of Financing Receivables, Non-Performing Status

The following tables provide additional detail on loans on non-accrual status and loans past due over 89 days still accruing as of:


		March 31, 2026
		Non-accrual With No Allowance for Credit Loss				Non-accrual With Allowance for Credit Loss				Loans Past Due Over 89 Days Still Accruing
		(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied		$	—			$	—			$	—
Commercial real estate — non-owner occupied			—				—				—
Construction and land development			11,424				—				—
Multi-family			4,204				—				—
1-4 family			—				—				—
Total commercial real estate			15,628				—				—
Commercial and industrial			9,788				15,087				—
Consumer and other			—				—				—
Total non-accrual loans and leases		$	25,416			$	15,087			$	—


		December 31, 2025
		Non-accrual With No Allowance for Credit Loss				Non-accrual With Allowance for Credit Loss				Loans Past Due Over 89 Days Still Accruing
		(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied		$	—			$	—			$	—
Commercial real estate — non-owner occupied			—				—				—
Construction and land development			14,581				—				—
Multi-family			4,292				—				—
1-4 family			—				—				—
Total commercial real estate			18,873				—				—
Commercial and industrial			10,652				14,330				—
Consumer and other			—				—				—
Total non-accrual loans and leases		$	29,525			$	14,330			$	—


		March 31, 2026				December 31, 2025
Total non-accrual loans and leases to gross loans and leases			1.16	%			1.30	%
Allowance for credit losses to gross loans and leases			1.10				1.12
Allowance for credit losses to non-accrual loans and leases			95.03				85.95

Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of the non-accrual, collateral-dependent loans as of:


		March 31, 2026				December 31, 2025
		(In Thousands)
Equipment		$	16,799			$	14,615
Real Estate			17,674				21,595
Accounts Receivable			6,057				7,277
Other			68				473
Total		$	40,598			$	43,960

Summary of Financial Difficulty and Modification Type

The following table presents the amortized cost basis of loans at March 31, 2026 that were both experiencing financial difficulty and modified during the three months ended March 31, 2026 and 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized costs basis of each class of financing receivable is also presented below.


		For the Three Months Ended March 31, 2026
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction				Combination Payment Delay and Term Extension				Total				Total Class of Financing Receivable
		(In Thousands)
Commercial real estate		$	—			$	—			$	—			$	—			$	—			$	—				0.00	%
Commercial and industrial			—				—				—				—				—				—				—
Total		$	—			$	—			$	—			$	—			$	—			$	—				0.00	%


		For the Three Months Ended March 31, 2025
		Principal Forgiveness				Payment Delay				Term Extension				Interest Rate Reduction				Combination Payment Delay and Term Extension				Total				Total Class of Financing Receivable
		(In Thousands)
Commercial real estate		$	—			$	—			$	—			$	—			$	—			$	—				0.00	%
Commercial and industrial			—				—				151				—				—				151				0.01
Total		$	—			$	—			$	151			$	—			$	—			$	151				0.00	%

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months:

          
         For the Three Months Ended March 31, 2026

          
         30-59
Days Past
Due

         60-89
Days Past
Due

         Greater
Than 90
Days Past
Due

         Total Past
Due

          
         (Dollars in Thousands)

Commercial real estate

$

—

$

—

$

—

$

—

Commercial and industrial

—

—

—

—

Total

$

—

$

—

$

—

$

—


		For the Three Months Ended March 31, 2025
		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days Past Due				Total Past Due
		(Dollars in Thousands)
Commercial real estate		$	—			$	—			$	—			$	—
Commercial and industrial			—				—				45				45
Total		$	—			$	—			$	45			$	45

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2026 and 2025:


		For the Three Months Ended March 31, 2026
(Dollars in Thousands)		Principal Forgiveness				Weighted Average Interest Rate Reduction				Weighted Average Term Extension (years)				Weighted Average Payment Delay (years)
Commercial real estate		$	—				0.00	%			0.00				0.00
Commercial and industrial			—				0.00				0.00				0.00
Total		$	—				0.00	%			0.00				0.00


		For the Three Months Ended March 31, 2025
(Dollars in Thousands)		Principal Forgiveness				Weighted Average Interest Rate Reduction				Weighted Average Term Extension (years)				Weighted Average Payment Delay (years)
Commercial real estate		$	—				0.00	%			0.00				0.00
Commercial and industrial			—				0.00				2.33				0.00
Total		$	—				0.00	%			2.33				0.00

Schedule of Amortized Cost Basis of Loans That Had Payment Default

The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2026 and 2025 and were modified in the 12 months prior to that default to borrowers experience financial difficulty:

          
         For the Three Months Ended March 31, 2026

          
         Principal Forgiveness

         Payment Delay

         Term Extension

         Interest Rate Reduction

          
         (In Thousands)

Commercial real estate

$

—

$

—

$

—

$

—

Commercial and industrial

—

—

—

—

Total

$

—

$

—

$

—

$

—

          
         For the Three Months Ended March 31, 2025

          
         Principal Forgiveness

         Payment Delay

         Term Extension

         Interest Rate Reduction

          
         (In Thousands)

Commercial real estate

$

—

$

—

$

—

$

—

Commercial and industrial

—

—

—

—

Total

$

—

$

—

$

—

$

—

Summary of Activity in Allowance for Credit Losses by Portfolio Segment

A summary of the activity in the allowance for credit losses by portfolio segment is as follows:


		As of and for the Three Months Ended March 31, 2026
		Owner Occupied				Non-Owner Occupied				Construction and Land Development				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
		(In Thousands)
Beginning balance		$	1,908			$	6,381			$	2,752			$	4,926			$	557			$	20,754			$	414			$	37,692
Charge-offs			—				—				—				—				—				(2,331	)			—				(2,331	)
Recoveries			—				—				—				—				7				161				—				168
Net recoveries (charge-offs)			—				—				—				—				7				(2,170	)			—				(2,163	)
Provision (credit) for credit losses			62				318				(48	)			(532	)			38				3,001				121				2,960
Ending balance		$	1,970			$	6,699			$	2,704			$	4,394			$	602			$	21,585			$	535			$	38,489
Components:
Allowance for credit losses on loans		$	1,966			$	6,617			$	1,678			$	4,335			$	562			$	20,987			$	486			$	36,631
Allowance for credit losses on unfunded credit commitments			4				82				1,026				59				40				598				49				1,858
Total ACL		$	1,970			$	6,699			$	2,704			$	4,394			$	602			$	21,585			$	535			$	38,489


		As of and for the Three Months Ended March 31, 2025
		Owner Occupied				Non-Owner Occupied				Construction and Land Development				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
		(In Thousands)
Beginning balance		$	1,629			$	5,892			$	2,826			$	4,613			$	523			$	21,470			$	315			$	37,268
Charge-offs			—				—				—				—				—				(3,800	)			(10	)			(3,810	)
Recoveries			2				—				—				—				6				390				—				398
Net recoveries (charge-offs)			2				—				—				—				6				(3,410	)			(10	)			(3,412	)
Provision (credit) for credit losses			51				125				(335	)			860				(35	)			1,886				107				2,659
Ending balance		$	1,682			$	6,017			$	2,491			$	5,473			$	494			$	19,946			$	412			$	36,515
Components:
Allowance for credit losses on loans		$	1,667			$	5,961			$	1,900			$	5,453			$	464			$	19,421			$	370			$	35,236
Allowance for credit losses on unfunded credit commitments			15				56				591				20				30				525				42				1,279
Total ACL		$	1,682			$	6,017			$	2,491			$	5,473			$	494			$	19,946			$	412			$	36,515

Allowance for Credit Losses and Balances by Type of Allowance Methodology

The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology.


		As of March 31, 2026
		Owner Occupied				Non-Owner Occupied				Construction and Land Development				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
		(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses		$	1,966			$	6,617			$	1,678			$	4,335			$	562			$	15,056			$	486			$	30,700
Individually evaluated for credit loss			—				—				—				—				—				5,931				—				5,931
Total		$	1,966			$	6,617			$	1,678			$	4,335			$	562			$	20,987			$	486			$	36,631
Loans and lease receivables:
Collectively evaluated for credit losses		$	306,593			$	925,425			$	213,442			$	573,067			$	61,332			$	1,333,538			$	47,223			$	3,460,620
Individually evaluated for credit loss			—				—				11,424				4,204				—				24,875				—				40,503
Total		$	306,593			$	925,425			$	224,866			$	577,271			$	61,332			$	1,358,413			$	47,223			$	3,501,123


		As of December 31, 2025
		Owner Occupied				Non-Owner Occupied				Construction and Land Development				Multi- Family				1-4 Family				Commercial and Industrial				Consumer and Other				Total
		(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit losses		$	1,902			$	6,306			$	1,871			$	4,915			$	521			$	14,439			$	373			$	30,327
Individually evaluated for credit loss			—				—				—				—				—				5,550				—				5,550
Total		$	1,902			$	6,306			$	1,871			$	4,915			$	521			$	19,989			$	373			$	35,877
Loans and lease receivables:
Collectively evaluated for credit losses		$	293,706			$	885,870			$	233,979			$	567,176			$	60,661			$	1,249,015			$	40,965			$	3,331,372
Individually evaluated for credit loss			—				—				14,581				4,292				—				24,982				—				43,855
Total		$	293,706			$	885,870			$	248,560			$	571,468			$	60,661			$	1,273,997			$	40,965			$	3,375,227