SHORE BANCSHARES INC, 10-K filed on 3/2/2026
Annual Report
v3.25.4
COVER PAGE - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 26, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 000-22345    
Entity Registrant Name SHORE BANCSHARES, INC.    
Entity Incorporation, State or Country Code MD    
Entity Tax Identification Number 52-1974638    
Entity Address, Address Line One 18 E. Dover Street    
Entity Address, City or Town Easton    
Entity Address, State or Province MD    
Entity Address, Postal Zip Code 21601    
City Area Code 410    
Local Phone Number 763-7800    
Title of 12(b) Security Common stock, $0.01 par value per share    
Trading Symbol SHBI    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 480.1
Entity Common Stock, Shares Outstanding   33,418,125  
Documents Incorporated by Reference
Documents Incorporated by Reference
Certain information required by Part III of this annual report is incorporated therein by reference to the definitive proxy statement for the 2026 Annual Meeting of Stockholders.
    
Entity Central Index Key 0001035092    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Auditor [Abstract]  
Auditor Name Crowe LLP
Auditor Location Livingston, New Jersey
Auditor Firm ID 173
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
ASSETS    
Cash and due from banks $ 50,164 $ 44,008
Interest-bearing deposits with other banks 305,402 415,843
Cash and cash equivalents 355,566 459,851
Investment securities:    
Available for sale, at fair value (amortized cost of $226,677 and $159,593 at December 31, 2025 and December 31, 2024, respectively) 220,358 149,212
Held to maturity, net of allowance for credit losses of $99 and $203 (fair value of $378,116 and $424,734 at December 31, 2025 and December 31, 2024, respectively) 414,827 481,077
Equity securities, at fair value 6,186 5,814
Restricted securities, at cost 17,989 20,253
Loans held for sale, at fair value 32,540 19,606
Loans held for investment 4,900,302 4,771,988
Less: allowance for credit losses (58,836) (57,910)
Loans, net 4,841,466 4,714,078
Premises and equipment, net 80,168 81,806
Goodwill 63,266 63,266
Other intangible assets, net 29,722 38,311
Right-of-use assets 10,523 11,385
Cash surrender value on life insurance 105,839 104,421
Accrued interest receivable 18,551 19,570
Deferred income taxes 29,825 31,857
Other assets 31,992 30,256
TOTAL ASSETS 6,258,818 6,230,763
Deposits:    
Noninterest-bearing 1,587,953 1,562,815
Interest-bearing checking 852,585 978,076
Money market and savings 1,814,928 1,805,884
Time deposits 1,267,487 1,181,561
Brokered deposits 10,911 0
Total deposits 5,533,864 5,528,336
FHLB advances 0 50,000
Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”), net 30,168 29,847
Subordinated debt, net 58,893 43,870
Total borrowings 89,061 123,717
Lease liabilities 11,027 11,844
Other liabilities 34,993 25,800
TOTAL LIABILITIES 5,668,945 5,689,697
COMMITMENTS AND CONTINGENCIES (Note 18)
STOCKHOLDERS’ EQUITY    
Common stock, $0.01 par value per share; shares authorized 50,000,000; shares issued and outstanding 33,413,503 and 33,332,177 at December 31, 2025 and December 31, 2024, respectively 334 333
Additional paid-in capital 360,554 358,112
Retained earnings 233,578 190,166
Accumulated other comprehensive loss (4,593) (7,545)
TOTAL STOCKHOLDERS’ EQUITY 589,873 541,066
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 6,258,818 $ 6,230,763
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Available for sale, amortized cost $ 226,677 $ 159,593
Held to maturity, allowance for credit losses 99 203
Held to maturity securities, fair value $ 378,116 $ 424,734
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 50,000,000 50,000,000
Common stock, issued (in shares) 33,413,503 33,332,177
Common stock, outstanding (in shares) 33,413,503 33,332,177
v3.25.4
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
INTEREST INCOME      
Interest and fees on loans $ 280,604 $ 269,631 $ 194,339
Interest and dividends on taxable investment securities 20,378 19,444 16,832
Interest and dividends on tax-exempt investment securities 24 24 46
Interest on federal funds sold 0 0 92
Interest on deposits with other banks 9,022 6,239 2,770
Total interest income 310,028 295,338 214,079
INTEREST EXPENSE      
Interest on deposits 109,203 115,301 68,800
Interest on short-term borrowings 2,089 2,131 5,518
Interest on long-term borrowings 6,359 7,357 4,454
Total interest expense 117,651 124,789 78,772
NET INTEREST INCOME 192,377 170,549 135,307
Provision for credit losses 8,375 4,738 30,953
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 184,002 165,811 104,354
NONINTEREST INCOME      
Service charges on deposit accounts 6,295 6,149 5,501
Trust and investment fee income 3,705 3,367 3,608
Mortgage banking revenue 6,078 5,987 4,513
Interchange credits 7,085 6,741 5,714
Bank-owned life insurance income 3,910 2,657 1,997
Bargain purchase gain 0 0 8,816
Other noninterest income 5,615 6,246 3,010
Total noninterest income 32,688 31,147 33,159
NONINTEREST EXPENSE      
Salaries and employee benefits 71,406 66,579 57,003
Occupancy expense 9,877 9,706 7,791
Furniture and equipment expense 3,334 3,441 2,551
Software and data processing 19,862 17,508 12,465
Amortization of other intangible assets 8,589 9,779 6,105
Legal and professional fees 5,064 5,836 4,337
FDIC insurance premium expense 3,753 4,413 3,479
Marketing and advertising 1,320 1,319 1,089
Fraud losses 460 4,998 879
Merger-related expenses 0 0 17,356
Other noninterest expense 14,370 14,675 10,274
Total noninterest expense 138,035 138,254 123,329
Income before income taxes 78,655 58,704 14,184
Income tax expense 19,149 14,815 2,956
NET INCOME $ 59,506 $ 43,889 $ 11,228
Basic net income per common share (in dollars per share) $ 1.78 $ 1.32 $ 0.42
Diluted net income per common share (in dollars per share) 1.78 1.32 0.42
Dividends paid per common share (in dollars per share) $ 0.48 $ 0.48 $ 0.48
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 59,506 $ 43,889 $ 11,228
Investment securities:      
Unrealized holding gains (losses) on available for sale securities 4,062 (70) 2,101
Tax effect (1,110) 19 (574)
Total other comprehensive income (loss) 2,952 (51) 1,527
Comprehensive income $ 62,458 $ 43,838 $ 12,755
v3.25.4
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-in Capital
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Loss
Beginning of period at Dec. 31, 2022 $ 364,285 $ (7,818) $ 199 $ 201,494 $ 171,613 $ (7,818) $ (9,021)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 11,228       11,228    
Other comprehensive income (loss) 1,527           1,527
TCFC acquisition (in shares)     132,000        
TCFC acquisition 153,087     152,955      
Common shares issued for employee stock purchase plan (in shares)     1,000        
Common shares issued for employee stock purchase plan 385     384      
Stock-based compensation 1,174     1,174      
Cash dividends at $0.48 per common share (12,733)       (12,733)    
End of period at Dec. 31, 2023 511,135   $ 332 356,007 162,290   (7,494)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 43,889       43,889    
Other comprehensive income (loss) (51)           (51)
Common shares issued for employee stock purchase plan (in shares)     1,000        
Common shares issued for employee stock purchase plan 376     375      
Stock-based compensation 1,730     1,730      
Cash dividends at $0.48 per common share (16,013)       (16,013)    
End of period at Dec. 31, 2024 541,066   $ 333 358,112 190,166   (7,545)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 59,506       59,506    
Other comprehensive income (loss) $ 2,952           2,952
Common shares issued for employee stock purchase plan (in shares) 10,793            
Common shares issued for employee stock purchase plan $ 82     82      
Stock-based compensation (in share)     1,000        
Stock-based compensation 2,361     2,360      
Cash dividends at $0.48 per common share (16,094)       (16,094)    
End of period at Dec. 31, 2025 $ 589,873   $ 334 $ 360,554 $ 233,578   $ (4,593)
v3.25.4
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)
 12 Months Ended
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]  
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2016-13 [Member]
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ 59,506 $ 43,889 $ 11,228
Adjustments to reconcile net income to net cash provided by operating activities:      
Net accretion of acquisition accounting estimates (12,043) (14,734) (8,772)
Provision for credit losses 8,375 4,738 30,953
Depreciation and amortization 15,331 16,040 10,939
Net amortization of securities 86 (546) 838
Amortization of debt issuance costs 120 122 122
Bargain purchase gain 0 0 (8,816)
Gain on mortgage loans held for sale (5,671) (5,021) (2,978)
Loss (gain) on other mortgage loan activity 6 (220) (499)
Proceeds from sale of mortgage loans held for sale 183,446 170,205 121,734
Originations of loans held for sale (191,278) (176,415) (123,376)
Stock-based compensation expense 1,890 1,730 1,174
Deferred income tax expense 922 8,869 2,721
Loss on sales and calls of securities 0 0 2,166
Loss (gain) on sales and valuation adjustments of repossessed assets 857 (3) 0
Loss on valuation adjustments on mortgage servicing rights 858 361 251
Loss on disposal of fixed assets 358 10 0
Loss (gain) on disposal of premises held for sale 61 (737) 0
Valuation adjustments on premises transferred to held for sale 0 289 272
Loss (gain) on sales and valuation adjustments on other real estate owned 66 0 (3)
Fair value adjustment on equity securities (189) 55 (54)
Bank-owned life insurance income (3,910) (2,657) (1,997)
Net changes in:      
Accrued interest receivable 1,019 (353) (724)
Other assets (4,115) 5,027 (10,908)
Accrued interest payable (421) (1,313) 2,095
Other liabilities 7,117 (2,449) (3,653)
Net cash provided by operating activities 62,391 46,887 22,713
CASH FLOWS FROM INVESTING ACTIVITIES:      
Proceeds from maturities and principal payments of available for sale securities 27,070 70,892 17,754
Proceeds from the sale of acquired available for sale securities 0 0 434,215
Proceeds from maturities and principal payments of held to maturity securities 68,141 48,960 44,801
Proceeds from life insurance death benefits 2,814 150 0
Purchases of available for sale securities (93,702) (108,554) (33,226)
Purchases of held to maturity securities (2,325) (17,512) 0
Proceeds from sale of loans held for investment 0 0 8,611
Purchases of equity securities (183) (166) (79)
Purchase of restricted securities (3,484) (36,157) (35,350)
Net change in loans (122,583) (123,277) (317,283)
Purchases of premises and equipment (3,168) (5,224) (5,954)
Proceeds from sales of other real estate owned 0 0 21
Proceeds from sales of repossessed assets 2,829 1,807 0
Redemption of restricted securities 5,748 33,804 32,959
Purchases of bank owned life insurance (322) (210) (249)
Proceeds from disposal of premises held for sale 843 946 721
Cash acquired in the acquisition of TCFC, net of cash paid 0 0 25,372
Net cash (used in) provided by investing activities (118,322) (134,541) 172,313
Net changes in:      
Noninterest-bearing deposits 25,138 304,778 (192,658)
Interest-bearing deposits (21,840) (164,049) 435,894
Short-term borrowings (50,000) 0 (109,000)
Long-term borrowings 0 50,000 0
Proceeds from issuance of subordinated debt, net of issuance costs 58,860 0 0
Redemption of subordinated debt (44,500) 0 0
Common stock dividends paid (16,094) (16,013) (12,733)
Issuance of common stock 82 376 385
Net cash (used in) provided by financing activities (48,354) 175,092 121,888
Net (decrease) increase in cash and cash equivalents (104,285) 87,438 316,914
Cash and cash equivalents at beginning of period 459,851 372,413 55,499
Cash and cash equivalents at end of period 355,566 459,851 372,413
Supplemental cash flows information:      
Interest paid 114,858 123,567 74,038
Income taxes paid 15,070 0 7,293
Recognition of lease liabilities arising from right-of-use assets 1,210 566 179
Transfers from loans to repossessed assets 3,408 5,119 0
Transfer from loans held for sale to loans held for investment 649 0 0
Unrealized gains (losses) on available for sale securities 4,062 (70) 2,101
Transfer of premises to held for sale, included in other assets $ 0 $ 1,387 $ 750
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries (collectively referred to in these Notes as the “Company”), with all significant intercompany transactions eliminated. The accounting and reporting policies of the Company conform with generally accepted accounting principles in the United States of America (“GAAP”). For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.
Nature of Operations
The Company engages in the banking business through Shore United Bank, N.A. (the “Bank”), a national banking association with trust powers with locations in Maryland, Delaware and Virginia. The Company’s primary source of revenue is derived from interest earned on commercial, residential mortgage and other loans, and fees charged in connection with lending and other banking services. The Company engages in financial service offerings through Wye Financial Partners and offers corporate trustee services through Wye Trust, a division of the Bank. The Bank also conducts secondary market lending activities. Mid-Maryland Title Company, Inc. (the “Title Company”), engaged in title work related to real estate transactions. The Title Company ceased conducting real estate closings effective March 31, 2025.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates.
Investments – Debt Securities
Investments in debt securities are classified as either held to maturity (“HTM”), available for sale (“AFS”), or trading, based on management’s intent. Currently, the Company has classified its debt securities within the AFS and HTM classifications. Debt securities purchased with the positive intent and ability to hold to maturity are classified as HTM and are recorded at amortized cost, net of any allowance for credit losses (“ACL”). Debt securities not classified as HTM are classified as AFS and are carried at estimated fair value with the corresponding unrealized gains and losses recognized in other comprehensive income (loss).
Gains or losses are recognized in net income on the trade date using the amortized cost of the specific security sold. Purchase premiums are recognized in interest income using the effective interest rate method over the period from purchase to maturity or, for callable securities, the earliest call date, and purchase discounts are recognized in the same manner from purchase to maturity.
The Company has elected to exclude accrued interest receivable from the amortized cost basis and fair value of its HTM and AFS debt securities and has included such accrued interest of $2.1 million and $2.5 million at December 31, 2025 and 2024, respectively, within accrued interest receivable on the consolidated balance sheets. The Company has securities that have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. At December 31, 2025, the aggregate carrying value of pledged AFS and HTM pledged securities was $69.4 million and $218.6 million, respectively. The comparable amounts as of December 31, 2024 were $67.9 million and $197.5 million, respectively.
Investments – Equity Securities
Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Any equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. Restricted equity securities are carried at cost and are periodically evaluated for impairment based on the ultimate recovery of par value. The entirety of any impairment on equity securities is recognized in earnings.
Allowance for Credit Losses – Securities
The Company evaluates its available for sale and held to maturity debt securities portfolios for expected credit losses as of the valuation date under ASC 326. For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it would be required to sell, the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through income during the current period. For available for
sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other driving factors. If the Company's assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an ACL is recorded for the credit loss (which represents the difference between the expected cash flows and amortized cost basis), limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.
The entire amount of an impairment loss is recognized in earnings only when: (1) the Company intends to sell the security; or (2) it is more likely than not that the Company will have to sell the security before recovery of the Company's amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in stockholders’ equity as comprehensive income, net of deferred taxes.
Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when the Company believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a noncredit-related impairment.
As part of its estimation process, the Company has elected to exclude accrued interest from the amortized cost basis of available for sale debt securities and report accrued interest separately in other assets in the consolidated balance sheet. Available for sale debt securities are placed on nonaccrual status when the Company no longer expects to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on nonaccrual status. Accordingly, the Company does not recognize an allowance for credit loss against accrued interest receivable. This approach is consistent with the Company’s nonaccrual policy implemented for its loan portfolio.
The Company separately evaluates its held to maturity investment securities for any credit losses. If it determines that a security indicates evidence of deteriorated credit quality, the security is individually-evaluated and a discounted cash flow analysis is performed and compared to the amortized cost basis. As of December 31, 2025, the Company had $378.1 million of securities classified as held to maturity at estimated fair value with an amortized cost basis of $414.9 million, with the remainder of the securities portfolio classified as available for sale.
Loans Held for Investment
The Company’s recorded investment in loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay off generally is reported at the unpaid principal balances adjusted for charges-offs, unearned discounts, any deferred fees or costs on originated loans, and the ACL. The Company has elected to exclude accrued interest receivable from the amortized cost basis of its loans held for investment and has included such accrued interest of $16.3 million and $16.7 million at December 31, 2025 and 2024, respectively, within accrued interest receivable on the consolidated balance sheets. Interest on loans is recorded to interest income based on the contractual rates and the amount of outstanding principal of the loans. Loan fees and origination costs are deferred and the net amount is amortized as an adjustment of the related loan’s yield using the level-yield method.
Loans acquired in a business combination are recorded at estimated fair value on the date of acquisition. In the case of loans that have experienced more than insignificant deterioration in credit quality since origination as of the acquisition date, the loan’s amortized cost basis is increased above estimated fair value by the amount of expected credit losses as of the acquisition date, and a corresponding ACL is also recorded.
A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier if collection is uncertain. Any accrued interest receivable on loans placed on nonaccrual status is reversed by an adjustment to interest income. Loans greater than 90 days past due may remain on accrual status if management determines it is well secured and in the process of collection. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed.
In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated balance sheets when they are funded.
In the normal course of banking business, risks related to specific loan segments are as follows:
Commercial Real Estate – Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied properties where an established banking relationship exists and involves investment properties for multi-family (5+), warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and
commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies, which can adversely impact cash flow.
Residential Real Estate – Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral.
Construction – Construction loans are offered primarily to builders and individuals to finance the construction of single-family dwellings. In addition, the Bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value.
Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. The Company discontinued the issuance of new marine loans and only services the existing portfolio at December 31, 2025.
Consumer – Consumer loans include installment loans and personal lines of credit. The credit risk of consumer loans is similar to that of residential real estate loans described above, as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan.
Credit Cards – Unsecured credit card loans were offered to our commercial and consumer customers. Credit risk factors include the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness or personal bankruptcy, among other factors. In 2024, the Company discontinued the issuance of new credit cards (except to select existing customers) and only services the existing portfolio at December 31, 2025.
Transfers of Loans Held for Sale (“LHFS”) to Loans Held for Investment (“LHFI”)
The Company may, from time to time, transfer LHFS to LHFI. Transfers of LHFS to LHFI are accounted for in accordance with the underlying accounting applied to the loan prior to its transfer. For loans where the fair value option had been elected, the Company continues to account for the loan at fair value in the LHFI portfolio. Subsequent changes in the fair value of these loans are recorded in interest income. The Company had a $649 thousand transfer from LHFS to LHFI during the year ended December 31, 2025 and no transfers from LHFS to LHFI during the years ended December 31, 2024 and 2023.
Allowance for Credit Losses – Loans Held for Investment
An ACL is estimated on loans held for investment, excluding loans carried at fair value. The ACL on loans is established through charges to earnings in the form of a provision for credit losses. Loan losses are charged against the ACL for the difference between the carrying value of the loan and the estimated net realizable value or fair value of the collateral, if collateral dependent, when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.
The allowance represents management’s current estimate of expected credit losses over the contractual term of loans held for investment, and is recorded at an amount that, in management’s judgment, reduces the recorded investment in loans to the net amount expected to be collected. No ACL is recorded on accrued interest receivable and amounts written-off are reversed by an adjustment to interest income. Management’s judgment in determining the level of the allowance is based on evaluations of historical loan losses, current conditions and reasonable and supportable forecasts relevant to the collectability of loans. The methodology for estimating the amount reported in the ACL is the sum of two main components, an allowance assessed on a collective basis for pools of loans that share similar risk characteristics and an allowance assessed on individual loans that do not share similar risk characteristics with other loans. Loans that share common risk characteristics are evaluated collectively using a cash flow approach. The cash flow approach used by the Company utilizes loan-level cash flow projections and pool-level assumptions. For loans that do not share risk characteristics with other loans, the ACL is measured based on the net realizable value, that is, the difference between the expected future cash flows and the amortized cost basis of the loan. When a loan is collateral-dependent and the repayment is expected to be provided substantially through the operation or sale of the collateral, the ACL is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral.
Cash flow projections and estimated expected losses on loans that share common risk characteristics are based in part on forecasts of independent economic variables, namely, the national unemployment rate, 10-year Treasury rate and changes in GDP that are reasonable and supportable over a 12-month period and incorporated into the estimate of expected credit losses using a statistical regression analysis. For periods beyond those for which reasonable and supportable forecasts are available, projections are based on a 12-month straight-line reversion of the corresponding economic independent variable from the last forecast to a historical average level.
Management’s estimate of the ACL on loans that are collectively evaluated also includes a qualitative assessment of available information relevant to assessing collectability that is not captured in the quantitative loss estimation process. Factors considered by management include concentrations of loans to specific industry segments, the volume and severity of delinquencies and adversely classified loan balances and the value of underlying collateral, and a number of other economic indicators intended to account for the imprecision inherent in forecasting economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available.
Reserve for Unfunded Commitments
The Company records a reserve within other liabilities for expected credit losses on commitments to extend credit that are not unconditionally cancellable by the Company. The reserve for unfunded commitments is measured based on the principles utilized in estimating the ACL on loans and an estimate of the amount of unfunded commitments expected to be advanced. Changes in the reserve for unfunded commitments are recorded through the provision for credit losses. The Company recorded a provision for credit losses associated with its unfunded commitments of $906 thousand, $104 thousand and $436 thousand during the years ended December 31, 2025, 2024 and 2023, respectively.
Loans Held For Sale
The Company has elected to carry its mortgage loans originated for sale at fair value. Fair value is determined based on outstanding investor commitments or, in the absence of such commitments, on current investor yield requirements or third-party pricing models. Fair value adjustments are recorded at each balance sheet date with the changes in fair value recognized in mortgage banking revenue in the consolidated statements of income. Gains and losses on loan sales are determined based on the differential between a loan’s carrying value and sales price and are recognized through mortgage-banking revenue in the consolidated statements of income. LHFS are sold either with the mortgage servicing rights (“MSRs”) released or retained by the Bank.
Mortgage Servicing Rights
When mortgage loans are sold with servicing retained, the MSRs are initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenue. Servicing rights are assessed for impairment quarterly, based on fair value, with impairment recorded through income. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. Servicing fee income is recorded in the mortgage banking revenue in the consolidated statements of income.
Premises and Equipment
Land is carried at cost and premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Useful lives range from three to ten years for furniture, fixtures and equipment; three to five years for computer hardware and data handling equipment; and ten to 40 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the remaining term of the respective lease or useful life, whichever is shorter. Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of an asset are capitalized and depreciated over the estimated remaining life of the asset.
Long-lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset.
Segment Reporting
The Company’s reportable segment is determined by the Chief Executive Officer, who is designated the chief operating decision maker (“CODM”), based upon information provided about the Company’s product and services offered. The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are then aggregated if operating performance of product and customers are similar. The CODM evaluates the financial performance of the Company’s business components such as revenue streams, significant expenses, and budget to actual results in assessing the Company’s segment and in determination of allocated resources. While the CODM monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial services operations are considered by management to be aggregated in one reportable operating segment. Refer to the “Consolidated Financial Statements” included in Part II, Item 8 of this Annual Report on Form 10-K.
Business Combinations
The Company accounts for business combinations utilizing the acquisition method of accounting, which requires purchased assets and assumed liabilities be recorded at their respective fair values. In numerous instances, the fair values of acquired assets and assumed
liabilities are ascertained by estimating the anticipated future cash flows from those assets and liabilities and discounting them at appropriate market rates. The Company determines the fair values of loans, core deposit intangibles and deposits with the assistance of a third-party vendor.
The most significant assessment of fair value in our accounting for business combinations relates to the valuation of an acquired loan portfolio. At acquisition, loans are classified as either (i) purchase credit-deteriorated (“PCD”) loans or (ii) non-PCD loans, and are recorded at fair value on the date of acquisition. PCD loans are those for which there is more than insignificant evidence of credit deterioration since origination. Fair values are determined primarily through a discounted cash flow approach that considers the acquired loans’ underlying characteristics, including account types, remaining terms, annual interest rates, interest types, timing of principal and interest payments, current market rates, and remaining balances. Estimates of fair value also include estimates of default, loss severity and estimated prepayments.
At acquisition, an allowance for PCD loans is determined based upon the Company’s methodology for estimating the ACL on loans. This allowance is credited to the ACL on loans with a corresponding adjustment to the amortized cost basis of the loan on the date of the acquisition. The difference between the new amortized cost basis and the unpaid principal balance is either a noncredit discount or premium that is amortized or accreted to interest income over the remaining life of the loan. Disposals of PCD loans, which may include sale of loans to third parties, receipt of payments in full or in part from the borrower or foreclosure of the collateral, result in removal of the loan from the loan portfolio at its carrying amount. For non-PCD loans, an ACL is established in a manner that is consistent with the Company’s originated loans. The ACL is determined using the Company’s methodology and the related ACL for non-PCD loans is recorded through a charge to the provision for credit losses in the period in which the loans are purchased or acquired. The entirety of any purchase discount or premium on non-PCD loans is amortized or accreted to interest income over the remaining life of the loan.
Goodwill and Other Intangible Assets
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. Goodwill and other intangible assets are initially required to be recorded at fair value. Determining fair value is subjective, requiring the use of estimates, assumptions and management judgment.
Goodwill is tested at least annually for impairment, usually during the fourth quarter, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of goodwill below its carrying value. Intangible assets that have finite lives are amortized over their estimated useful lives and also are subject to impairment testing. If the fair value of a reporting unit is less than its book value, an impairment charge may be required to write down the carrying value of the related goodwill to fair value. As of December 31, 2025, the Company had one operating segment, the banking segment. Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions and are amortized using an accelerated method over their estimated useful lives, which range from seven to ten years.
During the years ended December 31, 2025 and 2024, goodwill and other intangible assets were subjected to assessments for impairment. No impairment charges were recognized in either year. Our assessment of goodwill concluded it was not more likely than not that the fair value of the Company’s reporting unit was less than its carrying amount.
Borrowings
Short-term and long-term borrowings are comprised primarily of Federal Home Loan Bank (“FHLB”) borrowings. The Company’s short-term borrowings may also include advances on other lines of credit with correspondent banks or repurchase agreements with customers. The repurchase agreements are securities sold to the Company’s customers, at the customers’ request, under a continuing “roll-over” contract that matures in one business day. The underlying securities sold are U.S. government agency securities, which are segregated from the Company’s other investment securities by its safekeeping agents.
Subordinated Debt
Subordinated debt is carried at its outstanding principal balance, net of any unamortized issuance costs and acquisition related fair value adjustments. For additional information on the Company’s subordinated debt, refer to Note 8 – “Borrowings.”
Cash and Cash Equivalents
Cash and cash equivalents include cash, deposits with other financial institutions with original maturities fewer than 90 days and federal funds sold. Interest-bearing deposits in other financial institutions mature within 90 days or less.
Derivative Financial Instruments and Hedging
The Company accounts for derivatives in accordance with Financial Accounting Standards Board (“FASB”) literature on accounting for derivative instruments and hedging activities. When we enter into a derivative contract, we designate the derivative as held for trading, an
economic hedge, or a qualifying hedge as detailed in the literature. The designation may change based upon management’s reassessment or changing circumstances. Derivatives utilized by the Company include interest rate lock commitments (“IRLCs”) and forward settlement contracts. IRLCs occur when we originate mortgage loans with interest rates determined prior to funding. Forward settlement contracts are agreements to buy or sell a quantity of a financial instrument, index, currency, or commodity at a predetermined future date, rate, or price.
We designate at inception whether a derivative contract is considered hedging or non-hedging. All of our derivatives are nonexchange traded contracts, and as such, their fair value is based on dealer quotes, pricing models, discounted cash flow methodologies, or similar techniques for which the determination of fair value may require significant management judgment or estimation.
For qualifying hedges, we formally document at inception all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various accounting hedges. We primarily utilize derivatives to manage interest rate sensitivity.
As of December 31, 2025 and 2024, the Company did not have any designated hedges.
Fair Value
The Company measures certain financial assets and liabilities at fair value and also makes disclosures about certain financial instruments that are not measured at fair value in the consolidated balance sheets. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants, on the measurement date. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, and other factors, particularly in the absence of broad markets for specific terms. Changes in assumptions or in market conditions could significantly affect these estimates. See Note 16 – “Fair Value Measurements” for a further discussion of fair value.
Income Taxes
The Company and its subsidiary file a consolidated federal income tax return. The Company accounts for income taxes using the liability method in accordance with appropriate accounting guidance. Under this method, deferred tax assets and liabilities are determined by applying the applicable federal and state income tax rates to cumulative temporary differences. These temporary differences represent differences between financial statement carrying amounts and the corresponding tax bases of certain assets and liabilities. Deferred taxes result from such temporary differences.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income, recoverable taxes paid in prior years and tax planning strategies. The Company evaluates all positive and negative evidence before determining whether a valuation allowance is deemed necessary regarding the realization of deferred tax assets. The Company recognizes accrued interest and penalties as a component of tax expense.
The provision for income taxes includes the impact of reserve provisions and changes in the reserves that are considered appropriate, as well as the related net interest and penalties. In addition, the Company is subject to the continuous examination of its income tax returns by the IRS and other tax authorities that may assert assessments against the Company. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations and assessments to determine the adequacy of its provision for income taxes. The Company remains subject to examination for tax years ending on or after December 31, 2022.
Basic and Diluted Earnings Per Common Share
Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding and does not include the effect of any potentially dilutive common stock equivalents. Included in this calculation due to dividend participation rights are restricted stock awards that have been granted. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares outstanding, adjusted for the effect of any potentially dilutive common stock equivalents.
Transfers of Financial Assets
Transfers of financial assets are accounted for as sales at the time when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Stock-Based Compensation
The Company may grant share-based awards to employees and non-employee directors in the form of restricted stock and restricted stock units (“RSUs”). The fair value of restricted stock and RSUs is determined based on the closing price of the Company’s common stock on the date of grant. The Company recognizes compensation expense related to equity compensation on a straight-line basis over the vesting period for service-based awards. When equity awards are subject to performance conditions, the awards are subsequently remeasured in each reporting period until settlement based on the quantity of awards for which it is probable that the performance conditions will be achieved. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Company’s common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Company’s common stock at the time of grant. Expense related to shared-based compensation is recorded in the statements of income as a component of salaries and employee benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to additional paid-in capital.
Advertising Costs
Advertising costs are generally expensed as incurred. The Company incurred advertising costs of approximately $1.3 million, $1.3 million and $1.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Comprehensive Income
Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized holding gains and losses on available for sale securities, net of any gains recognized from the sale of available for sale securities. There were no reclassifications from accumulated other comprehensive income during the years ended December 31, 2025, 2024 and 2023.
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pre-tax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. The Company adopted this ASU prospectively on January 1, 2025. Refer to Note 14 – Income Taxes for additional details related to the impact that adoption of this ASU had on the Company’s consolidated financial statements and related disclosures.
v3.25.4
Investment Securities
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following tables provide information on the amortized cost and estimated fair values of investment securities as of December 31, 2025 and 2024.
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Available for sale securities(1):
December 31, 2025
U.S. Treasury and government agency securities$22,303 $2 $1,689 $20,616 
Mortgage-backed securities200,105 331 5,409 195,027 
Other debt securities(2)
4,269 446 — 4,715 
Total$226,677 $779 $7,098 $220,358 
December 31, 2024
U.S. Treasury and government agency securities$22,984 $4 $2,786 $20,202 
Mortgage-backed securities130,439 84 8,139 122,384 
Other debt securities(2)
6,170 469 13 6,626 
Total$159,593 $557 $10,938 $149,212 
____________________________________
(1)No available for sale (“AFS”) securities were sold during the years ended December 31, 2025 and 2024.
(2)Other debt securities includes corporate and municipal bond obligations of state and political entities.
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueAllowance for Credit Losses
Held to maturity securities:
December 31, 2025
U.S. Treasury and government agency securities$104,836 $2 $4,513 $100,325 $— 
Mortgage-backed securities303,129 255 32,167 271,217 — 
Other debt securities(1)
6,961 33 420 6,574 99 
Total$414,926 $290 $37,100 $378,116 $99 
December 31, 2024
U.S. Treasury and government agency securities$132,560 $— $8,555 $124,005 $— 
Mortgage-backed securities336,755 — 47,234 289,521 — 
Other debt securities(1)
11,965 19 776 11,208 203 
Total$481,280 $19 $56,565 $424,734 $203 
____________________________________
(1)Other debt securities includes corporate and municipal bond obligations of state and political entities.
Equity securities with aggregate fair values of $6.2 million and $5.8 million as of December 31, 2025 and 2024, respectively, are presented separately on the consolidated balance sheets. The fair value adjustments recorded through earnings totaled gains of $372 thousand, $111 thousand and $133 thousand for the years ended December 31, 2025, 2024 and 2023, respectively.
The following table summarizes the activity in the allowance for credit losses (“ACL”) on held to maturity (“HTM”) securities for the periods presented.
Year Ended December 31,
($ in thousands)202520242023
Balance, beginning of period$203 $94 $— 
Provision for (reversal of) credit losses, other debt securities(104)109 94 
Balance, end of period$99 $203 $94 
A reversal of the provision for credit losses of $104 thousand, a provision for credit losses of $109 thousand and a provision for credit losses of $94 thousand was recorded on HTM corporate and municipal bonds for the years ended December 31, 2025, 2024 and 2023, respectively.
The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024.
Less than 12 MonthsMore than 12 MonthsTotal
($ in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
December 31, 2025
Available for sale securities:
U.S. Treasury and government agency securities$— $— $18,027 $1,689 $18,027 $1,689 
Mortgage-backed securities102,954 531 47,656 4,878 150,610 5,409 
Other debt securities— — — — — — 
Total$102,954 $531 $65,683 $6,567 $168,637 $7,098 
Less than 12 MonthsMore than 12 MonthsTotal
($ in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
December 31, 2024
Available for sale securities:
U.S. Treasury and government agency securities$207 $— $17,422 $2,786 $17,629 $2,786 
Mortgage-backed securities56,913 710 48,782 7,429 105,695 8,139 
Other debt securities— — 1,988 13 1,988 13 
Total$57,120 $710 $68,192 $10,228 $125,312 $10,938 
There were 122 AFS debt securities with a fair value below the amortized cost basis, with unrealized losses totaling $7.1 million as of December 31, 2025. The Company concluded that a credit loss does not exist in its AFS securities portfolio as of December 31, 2025, and no impairment loss has been recognized based on the fact that (1) changes in fair value were primarily caused by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Company intends to hold these investments in debt securities to maturity and it is more likely than not the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities are issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments.
All HTM and AFS securities were current with no securities past due or on nonaccrual as of December 31, 2025 and 2024.
Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary. There were 122 AFS and 169 HTM securities in an unrealized loss position at December 31, 2025. There were 111 AFS and 187 HTM securities in an unrealized loss position at December 31, 2024. Net unrealized losses of the AFS securities totaled $6.3 million and $10.4 million as of December 31, 2025 and 2024, respectively.
The following table provides information on the amortized cost and estimated fair values of investment securities by contractual maturity date at December 31, 2025.
Available for SaleHeld to Maturity
($ in thousands)Amortized CostFair ValueAmortized CostFair Value
Due in one year or less$2,461 $2,463 $32,564 $32,391 
Due after one year through five years21,330 19,808 63,596 60,829 
Due after five years through ten years2,529 2,823 5,488 5,105 
Due after ten years252 237 10,149 8,574 
Total non-mortgage-backed securities$26,572 $25,331 $111,797 $106,899 
Mortgage-backed securities200,105 195,027 303,129 271,217 
Total$226,677 $220,358 $414,926 $378,116 
The maturity dates for debt securities are determined using contractual maturity dates. Actual maturities may differ from amounts presented because certain issuers have the right to call or prepay obligations without prepayment penalties.
The Company has securities that have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. At December 31, 2025, the aggregate carrying value of AFS and HTM pledged securities was $69.4 million and $218.6 million, respectively. The comparable amounts for December 31, 2024 were $67.9 million and $197.5 million, respectively.
The following table sets forth the amortized cost and estimated fair values of securities that have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase at December 31, 2025 and 2024.
December 31, 2025December 31, 2024
($ in thousands)Amortized CostFair ValueAmortized CostFair Value
Pledged available for sale securities$75,123 $69,369 $76,280 $67,926 
Pledged held to maturity securities218,556 197,146 197,474 173,248 
There were no obligations of any issuer exceeding 10% of stockholders’ equity at December 31, 2025 or 2024.
v3.25.4
Loans and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
The Company classifies loans as commercial real estate, residential real estate, construction, commercial, consumer and credit cards, with customers primarily located in Maryland, Delaware and Virginia. The Company makes loans to certain officers, directors and their affiliated interests. See Note 19 – “Related Party Transactions” for more information.
The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the most significant accounting policies that the Company follows, see Note 1 – “Summary of Significant Accounting Policies.”
The following table provides information about the principal classes of the loan portfolio at December 31, 2025 and 2024.
($ in thousands)December 31, 2025% of Total LoansDecember 31, 2024% of Total Loans
Commercial real estate$2,643,996 53.95 %$2,557,806 53.60 %
Residential real estate1,414,964 28.88 1,329,406 27.85 
Construction344,903 7.04 335,999 7.04 
Commercial226,006 4.61 237,932 4.99 
Consumer265,912 5.43 303,746 6.37 
Credit cards4,521 0.09 7,099 0.15 
Total loans4,900,302 100.00 %4,771,988 100.00 %
Less: allowance for credit losses(58,836)(57,910)
Total loans, net$4,841,466 $4,714,078 
Loans are stated at their principal amount outstanding, net of any purchase premiums or discounts, deferred fees, and costs. Included in loans were deferred costs, net of fees, of $3.1 million and $3.2 million at December 31, 2025 and 2024, respectively. At December 31, 2025 and 2024, loans included $1.49 billion and $1.69 billion, respectively, of aggregate loans that were acquired as part of the
acquisitions of Severn Bancorp, Inc. (“Severn”) and The Community Financial Corporation (“TCFC”). These balances are presented net of the related aggregate discounts, which totaled $78.2 million and $92.0 million at December 31, 2025 and 2024, respectively.
The following tables provide information on the amortized cost basis on nonaccrual loans by loan class as of December 31, 2025 and 2024.
($ in thousands)Nonaccrual With No Allowance For Credit LossNonaccrual With An Allowance For Credit LossTotal Nonaccrual Loans
December 31, 2025
Nonaccrual loans:
Commercial real estate$6,135 $19,498 $25,633 
Residential real estate9,594 544 10,138 
Construction88 — 88 
Commercial 2,297 784 3,081 
Consumer898 74 972 
Credit cards— 48 48 
Total$19,012 $20,948 $39,960 
Interest income $285 $363 $648 
($ in thousands)Nonaccrual With No Allowance For Credit LossNonaccrual With An Allowance For Credit LossTotal Nonaccrual Loans
December 31, 2024
Nonaccrual loans:
Commercial real estate$8,192 $2,194 $10,386 
Residential real estate6,741 873 7,614 
Construction360 — 360 
Commercial458 549 1,007 
Consumer761 712 1,473 
Credit cards— 168 168 
Total$16,512 $4,496 $21,008 
Interest income$274 $65 $339 
($ in thousands)Nonaccrual Delinquent LoansNonaccrual Current LoansTotal Nonaccrual Loans
December 31, 2025
Nonaccrual loans:
Commercial real estate$2,809 $22,824 $25,633 
Residential real estate3,808 6,330 10,138 
Construction88 — 88 
Commercial196 2,885 3,081 
Consumer491 481 972 
Credit cards32 16 48 
Total$7,424 $32,536 $39,960 
($ in thousands)Nonaccrual Delinquent LoansNonaccrual Current LoansTotal Nonaccrual Loans
December 31, 2024
Nonaccrual loans:
Commercial real estate$7,268 $3,118 $10,386 
Residential real estate3,979 3,635 7,614 
Construction360 — 360 
Commercial70 937 1,007 
Consumer1,431 42 1,473 
Credit cards146 22 168 
Total$13,254 $7,754 $21,008 
The overall quality of the Company’s loan portfolio is primarily assessed using the Company’s risk-grading scale. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators are adjusted based on management’s judgment during the quarterly review process.
Consumer credit cards are monitored based on a borrower’s payment history. Credit card loans are classified as performing and are typically charged off no later than 180 days past due or when, in the opinion of management, the collection of principal or interest is considered doubtful. As of December 31, 2025, there were two credit cards that were evaluated based on economic conditions specific to the loans or borrowers, and were downgraded to substandard and nonperforming.
Loans subject to risk rating are graded on a scale of one to ten.
Ratings 1 thru 6 – Pass – Ratings 1 thru 6 have asset risks ranging from excellent-low to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks.
Rating 7 – Special Mention – These credits have potential weaknesses due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. Special mention loan relationships are reviewed at least quarterly.
Rating 8 – Substandard – Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. Substandard loans are the first adversely classified loans on the Bank’s watchlist. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor or operating losses. When a loan is assigned to this category, the Company may estimate a specific reserve in the credit loss allowance analysis and/or place the loan on nonaccrual. These assets listed may include assets with histories of repossessions or some that are nonperforming bankruptcies. These relationships will be reviewed at least quarterly.
Rating 9 – Doubtful – Doubtful assets have many of the same characteristics of substandard with the exception that the Company has determined that loss is not only possible but is probable. The amount of loss is not discernible due to factors such as merger, acquisition, or liquidation; a capital injection; a pledge of additional collateral; the sale of assets; or alternative refinancing plans. Credits receiving a doubtful classification are required to be on nonaccrual. These relationships will be reviewed at least quarterly.
Rating 10 – Loss – Loss assets are uncollectible or of little value.
The following table provides information on loan risk ratings as of December 31, 2025 and gross write-offs during the year ended December 31, 2025.
Term Loans by Origination YearRevolving
loans		Revolving
converted to
term loans		Total
($ in thousands)Prior20212022202320242025
December 31, 2025
Commercial real estate
Pass$939,986 $364,719 $556,924 $242,170 $139,929 $265,405 $14,703 $27,136 $2,550,972 
Special mention15,105 2,884 34,014 344 — — — — 52,347 
Substandard20,056 16,806 2,840 — 283 — 692 — 40,677 
Total$975,147 $384,409 $593,778 $242,514 $140,212 $265,405 $15,395 $27,136 $2,643,996 
Gross charge-offs$(109)$(2,640)$— $— $— $— $— $— $(2,749)
Residential real estate
Pass$317,764 $182,198 $275,869 $215,397 $147,517 $114,300 $131,075 $695 $1,384,815 
Special mention3,719 14,777 — 504 — — 65 — 19,065 
Substandard6,990 2,012 267 330 — 112 1,373 — 11,084 
Total$328,473 $198,987 $276,136 $216,231 $147,517 $114,412 $132,513 $695 $1,414,964 
Gross charge-offs$(5)$— $— $— $— $— $(45)$— $(50)
Construction
Pass$27,094 $7,238 $7,047 $28,868 $108,885 $151,738 $13,070 $632 $344,572 
Special mentions— — — — — — — — — 
Substandard88 — — — — 243 — — 331 
Total$27,182 $7,238 $7,047 $28,868 $108,885 $151,981 $13,070 $632 $344,903 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$23,379 $25,518 $19,739 $14,925 $29,307 $35,202 $70,493 $1,870 $220,433 
Special mention104 27 107 105 76 54 845 — 1,318 
Substandard424 1,055 758 527 — — 1,318 173 4,255 
Total$23,907 $26,600 $20,604 $15,557 $29,383 $35,256 $72,656 $2,043 $226,006 
Gross charge-offs$(71)$— $— $(329)$— $— $(381)$(31)$(812)
Consumer
Pass$7,954 $45,750 $88,990 $39,576 $31,597 $49,634 $769 $— $264,270 
Special mention— — 671 — — — — — 671 
Substandard1 29 396 445 41 59 — — 971 
Total$7,955 $45,779 $90,057 $40,021 $31,638 $49,693 $769 $— $265,912 
Gross charge-offs$(451)$(99)$(1,595)$(646)$(324)$— $(18)$— $(3,133)
Total
Pass$1,316,177 $625,423 $948,569 $540,936 $457,235 $616,279 $230,110 $30,333 $4,765,062 
Special mention18,928 17,688 34,792 953 76 54 910 — 73,401 
Substandard27,559 19,902 4,261 1,302 324 414 3,383 173 57,318 
Total loans by risk category$1,362,664 $663,013 $987,622 $543,191 $457,635 $616,747 $234,403 $30,506 $4,895,781 
Total gross charge-offs$(636)$(2,739)$(1,595)$(975)$(324)$— $(444)$(31)$(6,744)
The following table presents the amortized cost in credit card loans based on performing status and gross charge-off as of December 31, 2025 and gross write-offs during the year ended December 31, 2025. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.
Term Loans by Origination YearRevolving LoansRevolving Converted to Term LoansTotal
($ in thousands)Prior20212022202320242025
December 31, 2025
Credit cards
Performing$— $— $— $— $— $— $4,473 $— $4,473 
Nonperforming— — — — — — 48 — 48 
Total$— $— $— $— $— $— $4,521 $— $4,521 
Gross charge-offs$— $— $— $— $— $— $(535)$— $(535)
Total loans evaluated by performing status$— $— $— $— $— $— $4,521 $— $4,521 
Total gross charge-offs$(636)$(2,739)$(1,595)$(975)$(324)$— $(979)$(31)$(7,279)
Total recorded investment$1,362,664 $663,013 $987,622 $543,191 $457,635 $616,747 $238,924 $30,506 $4,900,302 
The following table provides information on loan risk ratings as of December 31, 2024 and gross write-offs during the year ended December 31, 2024.
Term Loans by Origination YearRevolving
Loans		Revolving
Converted to
Term Loans		Total
($ in thousands)Prior20202021202220232024
December 31, 2024
Commercial real estate
Pass$822,391 $297,098 $435,084 $534,936 $250,482 $136,891 $24,966 $14,084 $2,515,932 
Special mention7,514 — 2,964 19,746 — — 417 — 30,641 
Substandard7,684 — 2,991 — — — 558 — 11,233 
Total$837,589 $297,098 $441,039 $554,682 $250,482 $136,891 $25,941 $14,084 $2,557,806 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Residential real estate
Pass$291,306 $78,568 $211,938 $295,402 $220,753 $101,005 $119,367 $613 $1,318,952 
Special mention1,529 518 — — — — — — 2,047 
Substandard5,414 — 1,342 290 885 — 476 — 8,407 
Total$298,249 $79,086 $213,280 $295,692 $221,638 $101,005 $119,843 $613 $1,329,406 
Gross charge-offs$(1)$— $— $— $— $— $— $— $(1)
Construction
Pass$31,884 $8,191 $8,628 $56,685 $70,232 $131,383 $26,785 $1,851 $335,639 
Special mentions— — — — — — — — — 
Substandard360 — — — — — — — 360 
Total$32,244 $8,191 $8,628 $56,685 $70,232 $131,383 $26,785 $1,851 $335,999 
Gross charge-offs$— $— $(12)$— $— $— $— $— $(12)
Commercial
Pass$25,214 $11,088 $40,817 $29,142 $29,458 $39,489 $57,982 $874 $234,064 
Special mention116 — — — — — 703 11 830 
Substandard515 — 8 1,257 500 — 257 501 3,038 
Total$25,845 $11,088 $40,825 $30,399 $29,958 $39,489 $58,942 $1,386 $237,932 
Gross charge-offs$(54)$(11)$— $(56)$(69)$— $— $— $(190)
Consumer
Pass$1,315 $10,469 $60,718 $114,639 $61,652 $52,798 $682 $— $302,273 
Special mention— — — — — — — — — 
Substandard2 — 48 860 563 — — — 1,473 
Total$1,317 $10,469 $60,766 $115,499 $62,215 $52,798 $682 $— $303,746 
Gross charge-offs$(1,287)$(12)$(389)$(1,764)$(177)$— $(17)$— $(3,646)
Total
Pass$1,172,110 $405,414 $757,185 $1,030,804 $632,577 $461,566 $229,782 $17,422 $4,706,860 
Special mention9,159 518 2,964 19,746 — — 1,120 11 33,518 
Substandard13,975 — 4,389 2,407 1,948 — 1,291 501 24,511 
Total loans by risk
category		$1,195,244 $405,932 $764,538 $1,052,957 $634,525 $461,566 $232,193 $17,934 $4,764,889 
Total gross
charge-offs		$(1,342)$(23)$(401)$(1,820)$(246)$— $(17)$— $(3,849)
The following table presents the amortized cost in credit card loans based on performing status and gross charge-off as of December 31, 2024 and gross write-offs during the year ended December 31, 2024. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.
Term Loans by Origination YearRevolving
Loans		Revolving
Converted to
Term Loans		Total
($ in thousands)Prior20202021202220232024
December 31, 2024
Credit cards
Performing$— $— $— $— $— $— $6,931 $— $6,931 
Nonperforming— — — — — — 168 — 168 
Total$— $— $— $— $— $— $7,099 $— $7,099 
Gross charge-offs$— $— $— $— $— $— $(584)$— $(584)
Total loans evaluated
by performing status		$— $— $— $— $— $— $7,099 $— $7,099 
Total gross charge-offs$— $— $— $— $— $— $(584)$— $(584)
Total recorded
investment		$1,195,244 $405,932 $764,538 $1,052,957 $634,525 $461,566 $239,292 $17,934 $4,771,988 
The following tables provide information on the aging of the Company’s loan portfolio as of December 31, 2025 and 2024.
($ in thousands)30‑59 Days Past Due60‑89 Days Past Due90 Days Past Due and Still Accruing30-89 Days Past Due and Not Accruing90 Days Past Due and Not AccruingTotal Past DueCurrent Accrual LoansCurrent Nonaccrual LoansTotal
December 31, 2025
Commercial real estate$1,684 $— $— $68 $2,741 $4,493 $2,616,679 $22,824 $2,643,996 
Residential real estate1,663 397 71 1,225 2,583 5,939 1,402,695 6,330 1,414,964 
Construction— 43 79 — 88 210 344,693 — 344,903 
Commercial— 4 — 46 150 200 222,921 2,885 226,006 
Consumer390 690 — 43 448 1,571 263,860 481 265,912 
Credit cards14 19 105 32 — 170 4,335 16 4,521 
Total$3,751 $1,153 $255 $1,414 $6,010 $12,583 $4,855,183 $32,536 $4,900,302 
Percent of total loans0.08 %0.02 %0.01 %0.03 %0.12 %0.26 %99.08 %0.66 %100.00 %
($ in thousands)30‑59 days Past Due60‑89 Days Past Due90 Days Past Due and Still Accruing30-89 Days Past Due and Not Accruing90 Days Past Due and Not AccruingTotal Past DueCurrent Accrual LoansCurrent Nonaccrual LoansTotal
December 31, 2024
Commercial real estate$75 $— $— $2,328 $4,940 $7,343 $2,547,345 $3,118 $2,557,806 
Residential real estate3,828 246 127 655 3,324 8,180 1,317,591 3,635 1,329,406 
Construction30 — — — 360 390 335,609 — 335,999 
Commercial152 2 — — 70 224 236,771 937 237,932 
Consumer4,068 55 — 1,180 251 5,554 298,150 42 303,746 
Credit cards161 190 167 — 146 664 6,413 22 7,099 
Total$8,314 $493 $294 $4,163 $9,091 $22,355 $4,741,879 $7,754 $4,771,988 
Percent of total loans0.17 %0.01 %0.01 %0.09 %0.19 %0.47 %99.37 %0.16 %100.00 %
The following tables provide a summary of the activity in the ACL allocated by loan class for the years ended December 31, 2025 and 2024. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses from other loan classes.
($ in thousands)Beginning
Balance		Charge-offsRecoveriesProvisionsEnding
Balance
Year Ended December 31, 2025
Commercial real estate$22,846 $(2,749)$78 $1,212 $21,387 
Residential real estate21,776 (50)196 588 22,510 
Construction2,854 — 1 3,113 5,968 
Commercial3,138 (812)112 567 3,005 
Consumer6,889 (3,133)242 1,769 5,767 
Credit cards407 (535)3 324 199 
Total$57,910 $(7,279)$632 $7,573 $58,836 

($ in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding
Balance
Year Ended December 31, 2024
Commercial real estate$23,015 $— $— $(169)$22,846 
Residential real estate19,909 (1)71,861 21,776 
Construction3,935 (12)13(1,082)2,854 
Commercial2,671 (190)15642 3,138 
Consumer7,601 (3,646)3172,617 6,889 
Credit cards220 (584)9 762 407 
Total$57,351 $(4,433)$361 $4,631 $57,910 
The following tables present the amortized cost basis of collateral-dependent loans by loan portfolio segment.
December 31, 2025
($ in thousands)Real Estate CollateralOther CollateralTotal
Commercial real estate$40,676 $— $40,676 
Residential real estate11,084 — 11,084 
Construction332 — 332 
Commercial— 4,164 4,164 
Consumer— 971 971 
Total$52,092 $5,135 $57,227 
December 31, 2024
($ in thousands)Real Estate CollateralOther CollateralTotal
Commercial real estate$12,835 $— $12,835 
Residential real estate9,023 — 9,023 
Construction360 — 360 
Commercial— 3,039 3,039 
Consumer— 1,483 1,483 
Total$22,218 $4,522 $26,740 
Loan Modifications to Borrowers Experiencing Financial Difficulty
Loan modifications to borrowers experiencing financial difficulty may include interest rate reduction, principal or interest forgiveness, forbearance, term extensions and other combinations of actions intended to minimize economic loss and avoid foreclosure or repossession of collateral.
The following table presents details of portfolio loans that were modified during the year ended December 31, 2025, by loan category.
($ in thousands)Quantity of Loans ModifiedPrincipal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionTotal% of Total Portfolio Segment
December 31, 2025
Commercial real estate6$— $— $— $— $— $5,166 $5,166 0.20 %
Residential real estate3— — — — — 145 145 0.01 
Commercial2— — — — — 170 170 0.08 
Total11$— $— $— $— $— $5,481 $5,481 0.11 
As of December 31, 2025, of the loans with borrowers experiencing financial difficulty that were modified during the preceding 12 months, $5.3 million and $170 thousand were classified as current accrual and current nonaccrual, respectively.
The following table presents details of portfolio loans that were modified during the year ended December 31, 2024, by loan category.
($ in thousands)Quantity of Loans ModifiedPrincipal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionTotal% of Total Portfolio Segment
December 31, 2024
Commercial real estate1$— $— $1,362 $— $— $— $1,362 0.05 %
Total1$— $— $1,362 $— $— $— $1,362 0.03 
As of December 31, 2024, of the loans with borrowers experiencing financial difficulty that were modified during the preceding 12 months, $1.4 million was classified as current accrual.
The following table presents details of portfolio loans that were modified during the year ended December 31, 2023, by loan category.
($ in thousands)Quantity of Loans ModifiedPrincipal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionTotal% of Total Portfolio Segment
December 31, 2023
Commercial real estate2$— $— $253 $— $— $— $253 0.01 %
Commercial1— — 351 — — — 351 0.15 
Total3$— $— $604 $— $— $— $604 0.01 
During the years ended December 31, 2025 and 2024, there were no defaults on loan modifications made to borrowers experiencing financial difficulty in the preceding 12 months.
Foreclosure Proceedings
The Company had $124 thousand and $124 thousand of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of December 31, 2025 and 2024, respectively. The Company had $95 thousand and $554 thousand of commercial real estate loans collateralized by commercial real estate that were in the process of foreclosure as of December 31, 2025 and 2024.
Other Real Estate Owned (“OREO”) and Repossessed Assets
OREO and repossessed assets are adjusted for fair value upon transfer from loans to foreclosed assets, establishing a new cost basis. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. The Company had OREO and repossessed asset balances of $113 thousand and $2.9 million as of December 31, 2025 and $179 thousand and $3.3 million as of December 31, 2024, respectively.
Mortgage Servicing Rights (“MSRs”)
Mortgage loans are sold with servicing retained and the MSRs are initially recorded at fair value with the income statement effect recorded in mortgage banking revenue in the consolidated statements of income. Subsequently, the MSRs are amortized to the income statement in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon fair value of the rights as compared to carrying amount. No impairments of MSRs were recognized for the years ended December 31, 2025, 2024 or 2023. The Company recognized net servicing income of $378 thousand, $898 thousand and $866 thousand for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, the Company was servicing $343.8 million in loans for the Federal National Mortgage Association and $105.6 million in loans for Federal Home Loan Mortgage Corporation.
The following table presents activity in MSRs for the year ended December 31, 2025.
($ in thousands)Year Ended
December 31, 2025
Beginning balance$5,874 
Net additions126 
Amortization expense(528)
Other(330)
Ending balance$5,142 
The fair value of MSRs were determined using discount rates ranging from 9.0% to 10.0% at December 31, 2025 and 9.0% to 11.0% at December 31, 2024. The valuation on MSRs was not material at December 31, 2025 and 2024. Depending on the stratification of the specific mortgage servicing right, prepayment speeds ranged from 6.11% to 9.56% for the year ended December 31, 2025. The associated weighted-average default rate was 0.20% for the year ended December 31, 2025.
v3.25.4
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The following tables provide information on the significant components of goodwill and other acquired intangible assets as of December 31, 2025 and 2024.
December 31, 2025
($ in thousands)GoodwillCore Deposit Intangible
Gross carrying amount$63,266 $59,151 
Accumulated amortization— (29,429)
Net carrying amount$63,266 $29,722 
December 31, 2024
($ in thousands)GoodwillCore Deposit Intangible
Gross carrying amount$63,266 $59,151 
Accumulated amortization— (20,840)
Net carrying amount$63,266 $38,311 
The aggregate amortization expense for the core deposit intangible was $8.6 million, $9.8 million and $6.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, the estimated future remaining amortization for core deposit intangibles within the years ending December 31 is as follows:
($ in thousands)Amortization Expense
2026$7,398 
20276,208 
20285,060 
20293,980 
20303,096 
Thereafter3,980 
Total amortizing intangible assets$29,722 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease.
The Company’s long-term lease agreements for branches and offices are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.
The following tables present information about the Company’s leases as of and for the periods presented.
($ in thousands)December 31, 2025December 31, 2024
Right-of-use assets$10,523 $11,385 
Lease liabilities$11,027 $11,844 
Weighted-average remaining lease term 8.91 years10.20 years
Weighted-average discount rate3.42 %3.29 %
Remaining lease term – min0.36 years0.01 years
Remaining lease term – max15.68 years16.68 years
Year Ended December 31,
Lease cost ($ in thousands)
202520242023
Operating lease cost$2,009 $1,916 $1,645 
Total lease cost$2,009 $1,916 $1,645 
Cash paid for amounts included in the measurement of lease liabilities$1,954 $1,809 $1,553 
The following table presents a maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to total operating lease liabilities at December 31, 2025.
Lease payments due ($ in thousands)
December 31, 2025
2026$2,020 
20271,869 
20281,779 
20291,355 
2030997 
Thereafter4,578 
Total undiscounted cash flows12,598 
Less: imputed interest1,571 
Lease liabilities$11,027 
Total gross rental income was $1.1 million, $1.1 million and $1.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Leases Leases
Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease.
The Company’s long-term lease agreements for branches and offices are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.
The following tables present information about the Company’s leases as of and for the periods presented.
($ in thousands)December 31, 2025December 31, 2024
Right-of-use assets$10,523 $11,385 
Lease liabilities$11,027 $11,844 
Weighted-average remaining lease term 8.91 years10.20 years
Weighted-average discount rate3.42 %3.29 %
Remaining lease term – min0.36 years0.01 years
Remaining lease term – max15.68 years16.68 years
Year Ended December 31,
Lease cost ($ in thousands)
202520242023
Operating lease cost$2,009 $1,916 $1,645 
Total lease cost$2,009 $1,916 $1,645 
Cash paid for amounts included in the measurement of lease liabilities$1,954 $1,809 $1,553 
The following table presents a maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to total operating lease liabilities at December 31, 2025.
Lease payments due ($ in thousands)
December 31, 2025
2026$2,020 
20271,869 
20281,779 
20291,355 
2030997 
Thereafter4,578 
Total undiscounted cash flows12,598 
Less: imputed interest1,571 
Lease liabilities$11,027 
Total gross rental income was $1.1 million, $1.1 million and $1.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Premises and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Premises and Equipment Premises and Equipment
The following table provides information on premises and equipment as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024
Land$18,266 $18,266 
Buildings and land improvements71,485 71,721 
Furniture and equipment13,604 11,783 
Premises and equipment, gross103,355 101,770 
Accumulated depreciation(23,187)(19,964)
Premises and equipment, net$80,168 $81,806 
Depreciation expense totaled $4.4 million, $4.4 million and $3.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Deposits
 12 Months Ended
Dec. 31, 2025
Deposits [Abstract]  
Deposits Deposits
Deposits consist of the following categories as of the dates indicated:
($ in thousands)December 31, 2025December 31, 2024
Balance% of Total DepositsBalance% of Total Deposits
Noninterest-bearing deposits$1,587,953 28.69 %$1,562,815 28.27 %
Interest-bearing deposits:
Interest-bearing checking852,585 15.41 978,076 17.69 
Money market and savings1,814,928 32.80 1,805,884 32.67 
Time deposits1,267,487 22.90 1,181,561 21.37 
Brokered deposits10,911 0.20 — — 
Total interest-bearing3,945,911 71.31 3,965,521 71.73 
Total deposits$5,533,864 100.00 %$5,528,336 100.00 %
The Company holds deposits of certain officers, directors and their associates. See Note 19 – “Related Party Transactions” for more information.
The following table provides information on the approximate maturities of total time deposits at December 31, 2025.
($ in thousands)December 31, 2025
Within one year$1,163,823 
Year 279,259 
Year 311,964 
Year 45,115 
Year 57,326 
Thereafter— 
Total$1,267,487 
The approximate amount of certificates of deposit that exceeded the FDIC insurance limit of $250,000 or more was $403.5 million and $374.1 million at December 31, 2025 and 2024, respectively.
v3.25.4
Borrowings
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Borrowings Borrowings
The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the FHLB, to meet short-term liquidity needs.
The following table summarizes certain information of the Company’s borrowings as of and for the years ended December 31, 2025 and 2024.
December 31, 2025December 31, 2024
($ in thousands)AmountRateAmountRate
Average for the year
FHLB advances – variable$602 4.64 %$37,648 5.66 %
FHLB advances – fixed42,466 4.85 32,650 4.87 
At year end
FHLB advances – variable$— — %$— — %
FHLB advances – fixed(1)
— — 50,000 4.79 
____________________________________
(1) Fixed-rate advance with an option of terminating at predetermined dates, without incurring a prepayment fee.
Securities sold under agreements to repurchase are securities sold to customers, at the customers’ request, under a “roll-over” contract that matures in one business day. The underlying securities sold are U.S. government agency securities, which are segregated in the Company’s custodial accounts from other investment securities.
The Company had $95.0 million of federal funds lines of credit and a reverse repurchase agreement available on a short-term basis from correspondent banks at December 31, 2025 and 2024. In addition, the Company had secured credit availability of approximately $754.4 million from the FHLB at December 31, 2025. The Company has pledged as collateral, under a blanket lien, all qualifying residential loans under borrowing agreements with the FHLB. The Company had letters of credit with FHLB of $33.7 million and $6.1 million as of December 31, 2025 and 2024, respectively. These letters of credit are used to secure public deposits held with various municipal customers.
The following table summarizes certain information of the Company’s long-term debt as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024Issue DateStated Maturity DateEarliest Call DateInterest Rate
Subordinated Debentures due September 2030$— $25,000 202020302025
5.375% through September 2025, 3-month SOFR* + 5.265% thereafter
Subordinated Debentures due October 2030— 19,500 202020302025
4.75% through October 2025, 3-month SOFR + 4.58% thereafter
Subordinated Debentures due November 203560,000 — 202520352030
6.25% through November 2030, 3-month SOFR + 2.88% thereafter
Total subordinated debentures60,000 44,500 
Severn Capital Trust I20,619 20,619 20042035
3-month SOFR + 2.26%
Tri-County Capital Trust I7,217 7,217 20042034
90-day SOFR + 2.86%
Tri-County Capital Trust II5,155 5,155 20052035
90-day SOFR + 1.96%
Total trust preferred securities32,991 32,991 
Less: net discount and unamortized issuance costs(3,930)(3,774)
Total long-term debt$89,061 $73,717 
____________________________________
*    Secured Overnight Financing Rate (“SOFR”).
At December 31, 2025, subordinated debentures consisted of $60.0 million of long-term debt issued by the Company in November 2025. As of December 31, 2025, the recorded balance of subordinated debt issued by the Company, net of unamortized issuance costs and fair value discounts, was $58.9 million. The Company has the option to redeem the subordinate notes in part or whole as of November 15, 2030. As of December 31, 2025, 100% of the subordinated debt was considered Tier 2 capital under current regulatory guidelines.
The Company assumed trust preferred securities in the aggregate of $33.0 million as a result of the merger with TCFC in 2023 and the acquisition of Severn in 2021. Trust preferred securities consisted of $20.6 million issued by Severn Capital Trust I, $7.2 million issued by Tri-County Capital Trust I and $5.2 million issued by Tri-County Capital Trust II. The recorded balance of the junior subordinated debt securities of Severn Capital Trust I at December 31, 2025 was $19.0 million, net of the unamortized fair value adjustment of $1.7 million. At December 31, 2025, the junior subordinated debt securities of Tri-County Capital Trust I and Tri-County Capital Trust II had a recorded balance of $6.7 million and $4.5 million, respectively, which are presented net of the unamortized fair value adjustments of $504 thousand and $661 thousand, respectively. As of December 31, 2025, the entire amount of trust preferred securities debt is considered Tier 2 capital under current regulatory guidelines.
The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the Federal Home Loan Bank (“FHLB”) to meet short-term liquidity needs. The Company had no outstanding borrowings from the FHLB at December 31, 2025, and had $50.0 million outstanding at December 31, 2024. The Company did not have any correspondent federal fund lines at December 31, 2025 and 2024.
v3.25.4
Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
401(k) and Profit Sharing Plan – The Company has a 401(k) and profit sharing plan covering substantially all full-time employees. The Company currently matches 100% of the first 3% of each employee’s contributions and 50% of the next 2% of each employee’s contributions, each plan year. The Company may also make discretionary contributions based on profits. The Company’s contributions to this plan included in noninterest expense totaled $2.1 million, $1.9 million and $1.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Employee Stock Purchase Plan – The Company maintains an employee stock purchase under the Shore Bancshares, Inc. 2025 Employee Stock Purchase Plan (the “ESPP”). The ESPP provides (i) for four offering periods each year and (ii) that the purchase price for shares of the Company’s common stock purchased under the ESPP will be 15% of the lesser of the fair market value of the Company’s common stock on the purchase date or the fair market value of the Company’s common stock on the first day of the offering period. Notwithstanding the foregoing, the compensation committee of the Company’s board of directors may exercise its discretion, subject to certain conditions, to make changes to certain aspects of the ESPP. Participating eligible employees select a rate of payroll deduction of their salary or wage compensation received from the Company as in effect at the start of the offering period, with the aggregate purchase limited to a maximum fair market value of $25,000 per employee per year. Participation in the ESPP began on July 1, 2025 with the number of shares authorized for issuance fixed at 250,000. The ESPP is intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code.
During the year ended December 31, 2025, an aggregate of 10,793 shares of the Company’s common stock were issued in accordance with the ESPP. Net proceeds from the issuance of these shares were $142 thousand for the year ended December 31, 2025. As of December 31, 2025, 239,207 shares remained available for purchase under the ESPP.
Employee Stock Ownership Plan – Prior to the closing of the acquisition of TCFC during 2023, TCFC paid into its Employee Stock Ownership Plan (“ESOP”) and adopted resolutions to (i) terminate the ESOP and (ii) provide for full vesting of all account balances in the ESOP. In 2025, the Company received a favorable determination letter from the Internal Revenue Service approving the termination of the ESOP. During 2025, all remaining ESOP assets were distributed to participants in accordance with applicable plan and regulatory requirements.
v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
At the Company’s 2025 annual meeting, stockholders approved the Shore Bancshares, Inc. 2025 Equity Incentive Plan (the “2025 Equity Plan”), which replaced the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”). Although the 2016 Equity Plan was scheduled to expire in 2026, the Company adopted the 2025 Equity Plan in 2025 due to an insufficient number of shares remaining under the 2016 Equity Plan to permit the company to continue granting equity awards through its expected term. No further awards will be granted under the 2016 Equity Plan, although awards previously granted under the 2016 Equity Plan remain outstanding and continue to be governed by the original terms of the 2016 Equity Plan.
Under the 2025 Equity Plan, the Company may issue incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and performance stock units. Restricted stock units granted to employees vest in equal installments over a three-year period. Restricted stock units granted to directors vest on the first anniversary of the grant date. Performance stock units vest upon achievement of pre‑established performance targets over a three‑year performance period. Stock‑based compensation expense is measured based on the grant‑date fair value of the awards and is recognized ratably over the requisite service period, with forfeitures recognized as they occur. In connection with the adoption of the 2025 Equity Plan, an additional 1,000,000 shares of common stock were reserved for issuance. Together with the 73,967 shares of common stock that remained available for grant under the 2016 Equity Plan, the 2025 Equity Plan provides for an aggregate share reserve of 1,073,967 shares of common stock. As of December 31, 2025, a total of 992,641 shares remained available for future grants under the 2025 Equity Plan. The recipients of restricted stock units do not have any stockholder rights, including voting, dividend, or liquidation rights, with respect to the shares underlying awarded restricted stock units, until the recipient becomes the record holder of those shares.
The Company assumed 3,977 shares of restricted stock and 90,783 restricted stock units at a fair value of $11.56 per share as a result of the merger with TCFC. The vesting period for the outstanding restricted stock grants is between three to five years. The vesting period for restricted stock units is between one to three years.
The following table presents stock-based compensation expense included in the consolidated statements of income for each of the periods indicated.
Year Ended December 31,
($ in thousands)202520242023
Stock-based compensation expense$1,890 $1,730 $1,174 
The following table presents the total stock-based compensation expense related to unvested awards that has not yet been recognized as of December 31, 2025 and the weighted-average period over which the expense will be recognized.
At December 31, 2025
($ in thousands)Restricted StockRestricted Stock UnitsPerformance Stock Units
Unrecognized stock-based compensation expense$1 $1,770 $784 
Weighted-average period unrecognized expense is expected to be recognized0.2 years1.5 years1.9 years
The following table summarizes the Company’s restricted stock, restricted stock unit and performance stock unit activity for the year ended December 31, 2025.
Restricted StockRestricted Stock UnitsPerformance Stock Units
Number of SharesWeighted-Average Grant Date Fair Value per ShareNumber of SharesWeighted-Average Grant Date Fair Value per ShareNumber of SharesWeighted-Average Grant Date Fair Value per Share
Outstanding at December 31, 202451,610 $11.42 135,104 $11.46 43,651 $11.32 
Granted4,480 15.62 133,866 15.57 59,179 15.15 
Vested(51,610)11.39 (86,320)11.57 — — 
Forfeited(1,305)15.62 (6,244)13.59 (8,784)13.30 
Outstanding at December 31, 20253,175 16.01 176,406 14.45 94,046 13.55 
The fair value of restricted stock awards that vested during the years ended December 31, 2025, 2024 and 2023 was $749 thousand, $588 thousand, and $615 thousand, respectively. The fair value of restricted stock units that vested during the years ended December 31, 2025, 2024 and 2023 was $1.4 million, $914 thousand and $178 thousand, respectively. No performance stock unit awards vested during the years ended December 31, 2025, 2024 and 2023.
v3.25.4
Derivatives
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company maintains and accounts for derivatives, in the form of interest rate lock commitments (“IRLCs”) and mandatory forward contracts, in accordance with the FASB guidance on accounting for derivative instruments and hedging activities. The Company recognizes gains and losses through mortgage banking revenue in the consolidated statements of income.
IRLCs on mortgage loans that the Company intends to sell in the secondary market are considered derivatives. The Company is exposed to price risk from the time a mortgage loan is locked in until the time the loan is sold. The period of time between issuance of a loan commitment, closing and sale of the loan generally ranges from 14 days to 120 days, however, this period may be longer for construction to permanent loans that are originated with the intent of selling in the secondary market upon permanent financing. For these IRLCs and closed inventory in loans held for sale, the Company attempts to protect itself from changes in interest rates through the use of to be announced (“TBA”) securities, which are forward contracts, as well as, to a significantly lesser degree, loan level commitments in the form of best efforts and mandatory forward contracts. These assets and liabilities are included in the consolidated balance sheets in other assets and accrued expenses and other liabilities, respectively.
The following table provides information pertaining to the carrying amounts of the Company’s derivative financial instruments as of December 31, 2025 and 2024.
December 31, 2025December 31, 2024
($ in thousands)Notional AmountEstimated Fair ValueNotional AmountEstimated Fair Value
Asset – IRLCs
$6,172 $91 $7,527 $113 
Asset – TBA securities
9,750 11 22,100 164 
Liability – IRLCs
193 1 — — 
Liability – TBA securities
20,150 59 7,550 23 
v3.25.4
Deferred Compensation
 12 Months Ended
Dec. 31, 2025
Deferred Compensation Arrangements [Abstract]  
Deferred Compensation Deferred Compensation
The Company has multiple deferred compensation agreements with current and former employees. The Deferred Compensation Plan is reserved for members of management and highly compensated employees of the Company and the Bank. The Deferred Compensation Plan permits a participant to elect, each year, to defer receipt of up to 50% of their salary and up to 100% of their bonus to be earned in the following year. The deferred amounts are credited to an account maintained on behalf of the participant and are invested at the discretion of each participant in certain deemed investment options. The actual investments purchased are owned by the Company and held in a Rabbi Trust. The accounts of the Rabbi Trust are consolidated and the investments are included in other assets on the consolidated balance sheets. The Company may also make discretionary contributions for certain participants. A participant is fully vested at all times in the amounts that they elect to defer. Any contributions made by the Company are subject to vesting over a three-year period.
The following table provides information on employer contributions and participant deferrals to the Deferred Compensation Plan and the related deferred compensation liability for the periods presented.
Year Ended December 31,
($ in thousands)202520242023
Employer contributions$218 $140 $52 
Participant elective deferrals 287 276 273 
Deferred compensation liability1,812 1,506 1,576 
The Company maintains supplemental executive retirement plans (“SERPs”) for certain current and former executive officers of the Company, CBTC and Severn. The related liability is unfunded; however, bank-owned life insurance was purchased to offset the benefit costs. The following table provides information on the expense recognized during the years ended December 31, 2025, 2024 and 2023, as well as the balance of the unfunded SERP liability and the cash surrender value of policies purchased to offset the SERP benefit costs as of December 31, 2025, 2024 and 2023. The unfunded SERP liability and cash surrender value were included on the consolidated balance sheets in other liabilities and other assets, respectively.
($ in thousands)December 31, 2025December 31, 2024December 31, 2023
Cash surrender value$102,150 $100,517 $98,140 
Deferred compensation liability – SERP13,576 13,349 12,869 
SERP expense1,166 1,050 1,405 
In 2016, the Company assumed agreements held by the former Centreville National Bank (“CNB”) under which its former directors had elected to defer part of their fees and compensation while serving on the former board of CNB. The amounts deferred were invested in
insurance policies on the lives of the respective individuals. Amounts available under the policies are to be paid to the individuals as retirement benefits over future years.
The following table includes information on the deferred compensation liability and cash surrender value as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024
Deferred compensation liability$200 $331 
Cash surrender value1,547 2,257 
v3.25.4
Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
The Company records unrealized holding gains (losses), net of tax, on AFS securities as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The following table provides information on the changes in the component of accumulated other comprehensive income (loss) for the years ended December 31, 2025, 2024 and 2023.
Year Ended
($ in thousands)December 31, 2025December 31, 2024December 31, 2023
Beginning of period$(7,545)$(7,494)$(9,021)
Other comprehensive income (loss), net of tax2,952 (51)1,527 
End of period$(4,593)$(7,545)$(7,494)
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
In its most recently filed tax year, the Company filed income tax returns in the United States federal jurisdiction and the State of Maryland. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years prior to 2022.
The following table provides information on the components of income tax expense from continuing operations for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands)202520242023
Current income tax expense:
Federal$13,870 $4,264 $172 
State4,357 1,681 63 
Total current income tax expense18,227 5,945 235 
Deferred income tax expense:
Federal536 6,570 1,692 
State386 2,300 1,029 
Total deferred income tax expense922 8,870 2,721 
Total income tax expense $19,149 $14,815 $2,956 
The Company did not have pre-tax income from continuing foreign operations or foreign tax expense during the years ended December 31, 2025, 2024 and 2023.
The following table provides a reconciliation of tax computed at the statutory federal tax rate and the recorded tax expense (in dollars and percentages) for the year ended December 31, 2025, under the provisions of ASU No. 2023-09.
Year Ended December 31, 2025
($ in thousands)AmountPercent
Tax at federal statutory rate$16,518 21.0 %
State and local income taxes, net of federal tax benefits(1)
3,746 4.7 
Tax credits
Low-income housing(2)
(21)— 
Nontaxable or nondeductible items
Appreciation in cash surrender value of life insurance(821)(1.1)
Other(273)(0.3)
Actual income tax$19,149 24.4 %
_________________________________
(1)State taxes in Maryland comprised the majority of the tax effect in this category.
(2)Includes proportional amortization of low income tax credit and other tax benefits.

The following table provides a reconciliation of tax computed at the statutory federal tax rate and the recorded tax expense (in percentages) for the years ended December 31, 2024 and 2023, prior to the adoption of ASU No. 2023-09.
Year Ended December 31,
20242023
Tax at federal statutory rate21.0 %21.0 %
Tax effect of:
Tax-exempt income(1.4)(3.6)
State and local income taxes, net of federal tax benefits5.4 6.1 
Bargain purchase gain— (13.1)
Nondeductible compensation costs0.1 3.9 
Nondeductible merger-related expenses— 2.6 
Other0.1 3.9 
Actual income tax25.2 %20.8 %
During the year ended December 31, 2025, the Company made payments to tax authorities for income taxes as set forth in the table below.
($ in thousands)2025
Federal$13,050 
State and local:
Maryland2,020 
Total taxes paid$15,070 
The following table provides information on significant components of the Company’s deferred tax assets and liabilities attributable to continuing operations as of December 31, 2025 and 2024.
December 31,
($ in thousands)20252024
Deferred tax assets:  
Allowance for credit losses$15,035 $14,888 
Valuation adjustments on OREO and repossessed assets217 — 
Nonaccrual loan interest 691 578 
Lease liabilities2,813 3,035 
Deferred compensation4,084 4,078 
State net operating losses2,834 2,066 
Deferred loan fees2,204 2,078 
Acquisition fair value adjustments20,628 24,988 
Unrealized losses on available for sale securities1,734 2,844 
Other1,432 1,233 
Total deferred tax assets$51,672 $55,788 
Deferred tax liabilities:
Depreciation$4,042 $4,115 
Right-of-use assets2,685 2,918 
Mortgage servicing rights1,312 1,505 
Acquisition fair value adjustments826 1,651 
Intangibles9,299 11,223 
Other886 575 
Total deferred tax liabilities19,050 21,987 
Less: valuation allowance(2,797)(1,944)
Net deferred tax assets$29,825 $31,857 
Management of the Company has determined that a full valuation allowance is required for Shore Bancshares’ and the Title Company’s state deferred tax assets, largely associated with their state net operating losses. As both entities file income tax returns in the state of Maryland on separate entity basis and do not expect to have taxable income in that jurisdiction, it is more likely than not that their state deferred tax assets will not be realized. This valuation allowance increased from $1.9 million to $2.8 million during the year ended December 31, 2025. Based on the Company’s analysis, no other valuation allowances have been recorded as the Company believes it will have sufficient future taxable income to realize its remaining federal and state deferred tax assets.
The Company has analyzed the tax positions taken or expected to be taken in its income tax returns for the periods ending December 31, 2025 and 2024, and has recorded no liabilities related to uncertain tax positions in accordance with the applicable guidance in ASC 740, Income Taxes.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and the restoration of favorable tax treatment for certain business tax provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others being phased in through 2027. Through December 31, 2025, the OBBBA had not materially impacted the Company’s income taxes; however, the Company continues to evaluate the effect the OBBBA will have on the Company's consolidated financial condition and results of operations.
v3.25.4
Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2025
Regulatory Capital Requirements under Banking Regulations [Abstract]  
Regulatory Capital Requirements Regulatory Capital Requirements
Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s
assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain amounts and ratios (set forth in the table below) of common equity Tier 1 (“CET1”), Tier 1 and total capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (leverage ratio). As of December 31, 2025 and 2024, management believes that the Company and the Bank met all capital adequacy requirements to which they were subject.
As of December 31, 2025, the most recent notification from the Bank’s primary regulator categorized the Bank, as “well-capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes would change the Bank’s classification. To be categorized as “well-capitalized,” the Bank must maintain minimum CET1, Tier 1 risk-based and total risk-based capital ratios, and Tier 1 leverage ratios, which are outlined in the table below.
The following table presents the capital amounts and ratios for the Company and the Bank as of December 31, 2025 and 2024.
December 31, 2025
AmountRegulatory Minimum Ratio + Capital Conservation Buffer
To Be Well-Capitalized Under Prompt Corrective Action Regulation(1)
($ in thousands)
Company Amounts
Common Equity Tier 1 Capital$510,729 $339,680 N/A
Tier 1 Capital540,897 412,469 N/A
Total Capital660,451 509,520 N/A
Risk-Weighted Assets4,852,573 245,172 N/A
Company Ratios
Common Equity Tier 1 Capital to Risk-Weighted Assets (“RWA”)10.52 %7.00 %N/A
Tier 1 Capital to RWA11.15 8.50 N/A
Total Capital to RWA13.61 10.50 N/A
Tier 1 Capital to AA (Leverage)(2)
8.82 4.00 N/A
Bank Amounts
Common Equity Tier 1 Capital$569,183 $339,125 $314,902 
Tier 1 Capital569,183 411,794 387,571 
Total Capital629,746 508,687 484,464 
Risk-Weighted Assets4,844,639 244,911 306,139 
Bank Ratios
Common Equity Tier 1 Capital to RWA11.75 %7.00 %6.50 %
Tier 1 Capital to RWA11.75 8.50 8.00 
Total Capital to RWA13.00 10.50 10.00 
Tier 1 Capital to AA (Leverage)(2)
9.30 4.00 5.00 
____________________________________
(1)Applies to the Bank only.
(2)Tier 1 Capital to Average Assets (Leverage) has no capital conservation buffer defined. The PCA well-capitalized threshold is defined as 5.00%.
December 31, 2024
AmountRegulatory Minimum Ratio + Capital Conservation Buffer
To Be Well-Capitalized Under Prompt Corrective Action Regulation(1)
($ in thousands)
Company Amounts
Common Equity Tier 1 Capital$458,258 $339,679 N/A
Tier 1 Capital488,105 412,468 N/A
Total Capital591,228 509,519 N/A
Risk-Weighted Assets4,852,564 243,350 N/A
Company Ratios
Common Equity Tier 1 Capital to RWA9.44 %7.00 %N/A
Tier 1 Capital to RWA10.06 8.50 N/A
Total Capital to RWA12.18 10.50 N/A
Tier 1 Capital to AA (Leverage)(2)
8.02 4.00 N/A
Bank Amounts
Common Equity Tier 1 Capital$521,453 $339,633 $315,374 
Tier 1 Capital521,453 412,412 388,152 
Total Capital580,706 509,450 485,190 
Risk-Weighted Assets4,851,903 243,102 303,877 
Bank Ratios
Common Equity Tier 1 Capital to RWA10.75 %7.00 %6.50 %
Tier 1 Capital to RWA10.75 8.50 8.00 
Total Capital to RWA11.97 10.50 10.00 
Tier 1 Capital to AA (Leverage)(2)
8.58 4.00 5.00 
_________________________________
(1)Applies to the Bank only.
(2)Tier 1 Capital to Average Assets (Leverage) has no capital conservation buffer defined. The PCA well-capitalized threshold is defined as 5.00%.

As of December 31, 2025, both the Company and the Bank satisfied the capital conservation buffer requirements applicable to them. The lowest ratio at the Company is the Tier 1 Capital to RWA, which was 5.15% above the minimum buffer ratio, and the lowest ratio at the Bank was the Total Capital to RWA, which was 5.00% above the minimum buffer ratio.
The Company is a separate legal entity from the Bank and must provide for its own liquidity. In addition to its operating expenses, the Company is responsible for paying any dividends declared to its common stockholders and interest and principal on outstanding debt. The Company’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to the Company in any calendar year, without the receipt of prior approval from the OCC, cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. As of December 31, 2025, the Bank could pay dividends to the Company to the extent of its current period earnings plus the earnings of the preceding two years, so long as it maintained required capital ratios.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities on a recurring basis and to determine fair value disclosures. Available for sale securities and equity securities with readily determinable fair values are recorded at fair value on a recurring basis, along with other mortgage-related items identified in the recurring fair value table below. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as collateral-dependent loans, repossessed assets and OREO (foreclosed assets). These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.
Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are:
•Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date.
•Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
Assets Measured at Fair Value on a Recurring Basis
Available for Sale Securities
Fair value measurement of AFS securities is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities, if any, as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. government agency securities and mortgage-backed securities issued or guaranteed by U.S. government-sponsored entities as Level 2.
Equity Securities
Fair value measurement for equity securities is based on quoted market prices retrieved by the Company via online resources. Although these securities have readily available fair market values, the Company determined that they should be classified as level 2 investments in the fair value hierarchy due to not being considered traded in a highly active market.
Loans Held for Sale
Loans held for sale are carried at fair value, which is determined based on Mark to Trade for allocated/committed loans or Mark to Market analysis for unallocated/uncommitted loans based on third-party pricing models (Level 2).
IRLCs
The Company utilizes a third-party specialist model to estimate the fair value of IRLCs, which are valued based upon mortgage securities (TBA) prices less estimated costs to process and settle the loan. Fair value is adjusted for the estimated probability of the loan closing with the borrower (Level 3).
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRange
December 31, 2025
IRLCs – net asset$90 Market ApproachRange of pull through rate
81% - 100%
Average pull through rate98%
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRange
December 31, 2024
IRLCs – net asset$113 Market ApproachRange of pull through rate
78% - 100%
Average pull through rate89%
The following table presents activity in the IRLCs – net asset for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands)202520242023
Beginning balance$113 $110 $28 
Valuation adjustment(23)3 82 
Ending balance$90 $113 $110 
Forward Contracts
To avoid interest rate risk, the Company hedges the open locked/closed position with TBA forward trades. On a regular basis, the Company allocates disbursed loans to mandatory commitments with government-sponsored enterprises and private investors delivering the loans within 120 days of origination to maximize interest earnings. For a small percentage of business, the Company enters into best efforts forward sales commitments with investors at the time it makes an IRLC to a borrower. Once a loan has been closed and funded, the best efforts commitments convert to mandatory forward sales commitments. The mandatory commitments are derivatives, and the Company measures and reports them at fair value. Fair value is based on the gain or loss that would occur if the Company were to pair-off the transaction with the investor at the measurement date. This is a Level 2 input. The Company has elected to measure and report best efforts commitments at fair value using a valuation methodology similar to that used for mandatory commitments.
Market assumptions utilized in the fair value measurement of the reporting entity’s residential mortgage derivatives, inclusive of IRLCs, Closed Loan Inventory, TBA derivative trades, and Mandatory Forwards may be subject to investor overlays that may result in a significantly lower fair value measurement. Generally such overlays are announced with advanced notice in order to include the risk adjuster, however there are times when announcements are mandated resulting in a lower fair value measurement. Additionally market assumptions such as spec pool payups may result in a significantly higher fair value measurement at time of loan allocation to specific trades.
The following tables present the recorded amount of assets measured at fair value on a recurring basis as of December 31, 2025 and 2024. No assets were transferred from one hierarchy level to another during the years ended December 31, 2025 or 2024.
($ in thousands)Fair ValueQuoted Prices
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2025
Assets:
Available for sale securities:
U.S. government agency securities$20,616 $— $20,616 $— 
Mortgage-backed securities195,027 — 195,027 — 
Other debt securities4,715 — 4,715 — 
Total available for sale securities220,358 — 220,358 — 
Equity securities6,186 — 6,186 — 
TBA forward trades11 — 11 — 
Loans held for sale32,540 — 32,540 — 
IRLCs91 — — 91 
Total assets at fair value$259,186 $— $259,095 $91 
Liabilities:
IRLCs$1 $— $— $1 
TBA forward trades59 — 59 — 
Total liabilities at fair value$60 $— $59 $1 
($ in thousands)Fair ValueQuoted Prices
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2024
Assets:
Available for sale securities:
U.S. government agency securities$20,202 $— $20,202 $— 
Mortgage-backed securities122,384 — 122,384 — 
Other debt securities6,626 — 6,626 — 
Total available for sale securities149,212 — 149,212 — 
Equity securities5,814 — 5,814 — 
TBA forward trades164 — 164 — 
Loans held for sale19,606 — 19,606 — 
IRLCs113 — — 113 
Total assets at fair value$174,909 $— $174,796 $113 
Liabilities:
TBA forward trades$23 $— $23 $— 
Total liabilities at fair value$23 $— $23 $— 
Assets Measured at Fair Value on a Non-recurring Basis
Individually Evaluated Collateral-Dependent Loans
Loans for which repayment is substantially expected to be provided through the operation or sale of collateral are considered collateral dependent and are valued based on the estimated fair value of the collateral, less estimated costs to sell at the reporting date, where applicable. Management utilizes various methods to estimate fair value of the collateral including appraisals, discounted cashflow and automated valuation methods. Accordingly, collateral-dependent loans are classified within Level 3 of the fair value hierarchy.
OREO (Foreclosed Assets)
Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets establishing a new cost basis. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. The estimated fair value for foreclosed assets included in Level 3 are determined by independent market-based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods.
Repossessed Assets
All repossessed assets are recorded at lower of the estimated fair value of the properties, less expected selling costs, or the carrying amount of the defaulted loans. From time to time, non-recurring fair value adjustments are recorded to reflect partial write-downs based on current appraised value of an asset. The Company considers any valuation inputs related to repossessed assets to be Level 3 inputs. Fair value adjustments for these assets are recorded in other noninterest expense in the consolidated statements of income.
Other Assets Held for Sale
Other assets held for sale are carried at the lower of the carrying amount or fair value. The fair value is determined based on the appraisal value, listing price of the property or collateral provided by independent appraisers, and is adjusted for the estimated costs to sell. Due to the use of significant unobservable inputs, these assets are classified as Level 3 under the fair value hierarchy. Fair value adjustments for these assets are recorded in other noninterest expense in the consolidated statements of income.
The following tables set forth the Company’s assets subject to fair value adjustments (impairment) on a non-recurring basis as of December 31, 2025 and 2024 that are valued at lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Quantitative Information about Level 3 Fair Value Measurements
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRangeWeighted-Average
December 31, 2025
Non-recurring measurements:
Individually-evaluated collateral dependent loans:
Commercial real estate$19,696 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
60% - 71%
10%
68%
10%
Residential real estate520 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
1%
10%
Commercial— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
0%
10%
Consumer— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
0%
10%
Other real estate owned113 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
Repossessed assets2,879 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
60%
Quantitative Information about Level 3 Fair Value Measurements
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRangeWeighted-Average
December 31, 2024
Nonrecurring measurements:
Individually-evaluated collateral dependent loans:
Commercial real estate$2,220 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
62%
10%
38%
10%
Residential real estate817 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
55% - 100%
10%
17%
10%
Commercial— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
14% - 100%
10%
0%
10%
Consumer624 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
80% - 86%
10%
15%
10%
Other real estate owned179 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
Repossessed assets3,315 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
39%
Assets held for sale900 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
_________________________________
(1)Unobservable inputs were weighted by the relative fair value of the instruments. No range is presented only when one instrument was available.
(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Fair Value of Financial Instruments
Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the financial instrument fair value disclosure requirements, including the Company’s common stock, OREO, repossessed assets, premises and equipment and other assets and liabilities.
The following tables present the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2025 and 2024. Fair values for December 31, 2025 and 2024 were estimated using an exit price notion.
December 31, 2025Carrying AmountFair ValueFair Value Measurements
($ in thousands)Level 1Level 2Level 3
Assets
Cash and cash equivalents$355,566 $355,566 $355,566 $— $— 
Available for sale securities220,358 220,358 — 220,358 — 
Held to maturity securities414,827 378,116 — 378,116 — 
Equity securities 6,186 6,186 — 6,186 — 
Restricted securities17,989 N/A— N/A— 
Loans held for sale32,540 32,540 — 32,540 — 
TBA securities11 11 — 11 — 
Loans held for investment, at amortized cost, net4,841,466 4,767,143 — — 4,767,143 
Mortgage servicing rights5,142 5,861 — 5,861 — 
Accrued interest receivable18,551 18,551 — 18,551 — 
IRLCs91 91 — — 91 
Liabilities
Deposits:
Noninterest-bearing$1,587,953 $1,587,953 $— $1,587,953 $— 
Interest-bearing checking852,585 852,585 — 852,585 — 
Money market and savings1,814,928 1,814,928 — 1,814,928 — 
Time deposits1,267,487 1,265,740 — 1,265,740 — 
Brokered deposits10,911 10,923 — 10,923 — 
FHLB advances— — — — — 
TRUPS30,168 29,586 — 29,586 — 
Subordinated debt58,893 58,064 — 58,064 — 
TBA Securities59 59 — 59 — 
Accrued interest payable2,977 2,977 — 2,977 — 
IRLCs1 1 — — 1 
December 31, 2024Carrying AmountFair ValueFair Value Measurements
($ in thousands)Level 1Level 2Level 3
Assets
Cash and cash equivalents$459,851 $459,851 $459,851 $— $— 
Available for sale securities149,212 149,212 — 149,212 — 
Held to maturity securities481,077 424,734 — 424,734 — 
Equity securities5,814 5,814 — 5,814 — 
Restricted securities20,253 20,253 — 20,253 — 
Loans held for sale19,606 19,606 — 19,606 — 
TBA securities164 164 — 164 — 
Loans held for investment, at amortized cost, net4,714,078 4,561,449 — — 4,561,449 
Mortgage servicing rights5,874 5,874 — 5,874 — 
Accrued interest receivable19,570 19,570 — 19,570 — 
IRLCs113 113 — — 113 
Liabilities
Deposits:
Noninterest-bearing$1,562,815 $1,562,815 $— $1,562,815 $— 
Interest bearing checking978,076 978,076 — 978,076 — 
Money market and savings1,805,884 1,805,884 — 1,805,884 — 
Time deposits1,181,561 1,179,716 — 1,179,716 — 
Brokered deposits— — — — — 
FHLB advances50,000 50,201 — 50,201 — 
TRUPS29,847 27,952 — 27,952 — 
Subordinated debt43,870 43,669 — 43,669 — 
TBA securities23 23 — 23 — 
Accrued interest payable3,398 3,398 — 3,398 — 
v3.25.4
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value Measurements
Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities on a recurring basis and to determine fair value disclosures. Available for sale securities and equity securities with readily determinable fair values are recorded at fair value on a recurring basis, along with other mortgage-related items identified in the recurring fair value table below. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as collateral-dependent loans, repossessed assets and OREO (foreclosed assets). These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.
Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are:
•Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date.
•Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
Assets Measured at Fair Value on a Recurring Basis
Available for Sale Securities
Fair value measurement of AFS securities is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities, if any, as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. government agency securities and mortgage-backed securities issued or guaranteed by U.S. government-sponsored entities as Level 2.
Equity Securities
Fair value measurement for equity securities is based on quoted market prices retrieved by the Company via online resources. Although these securities have readily available fair market values, the Company determined that they should be classified as level 2 investments in the fair value hierarchy due to not being considered traded in a highly active market.
Loans Held for Sale
Loans held for sale are carried at fair value, which is determined based on Mark to Trade for allocated/committed loans or Mark to Market analysis for unallocated/uncommitted loans based on third-party pricing models (Level 2).
IRLCs
The Company utilizes a third-party specialist model to estimate the fair value of IRLCs, which are valued based upon mortgage securities (TBA) prices less estimated costs to process and settle the loan. Fair value is adjusted for the estimated probability of the loan closing with the borrower (Level 3).
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRange
December 31, 2025
IRLCs – net asset$90 Market ApproachRange of pull through rate
81% - 100%
Average pull through rate98%
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRange
December 31, 2024
IRLCs – net asset$113 Market ApproachRange of pull through rate
78% - 100%
Average pull through rate89%
The following table presents activity in the IRLCs – net asset for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands)202520242023
Beginning balance$113 $110 $28 
Valuation adjustment(23)3 82 
Ending balance$90 $113 $110 
Forward Contracts
To avoid interest rate risk, the Company hedges the open locked/closed position with TBA forward trades. On a regular basis, the Company allocates disbursed loans to mandatory commitments with government-sponsored enterprises and private investors delivering the loans within 120 days of origination to maximize interest earnings. For a small percentage of business, the Company enters into best efforts forward sales commitments with investors at the time it makes an IRLC to a borrower. Once a loan has been closed and funded, the best efforts commitments convert to mandatory forward sales commitments. The mandatory commitments are derivatives, and the Company measures and reports them at fair value. Fair value is based on the gain or loss that would occur if the Company were to pair-off the transaction with the investor at the measurement date. This is a Level 2 input. The Company has elected to measure and report best efforts commitments at fair value using a valuation methodology similar to that used for mandatory commitments.
Market assumptions utilized in the fair value measurement of the reporting entity’s residential mortgage derivatives, inclusive of IRLCs, Closed Loan Inventory, TBA derivative trades, and Mandatory Forwards may be subject to investor overlays that may result in a significantly lower fair value measurement. Generally such overlays are announced with advanced notice in order to include the risk adjuster, however there are times when announcements are mandated resulting in a lower fair value measurement. Additionally market assumptions such as spec pool payups may result in a significantly higher fair value measurement at time of loan allocation to specific trades.
The following tables present the recorded amount of assets measured at fair value on a recurring basis as of December 31, 2025 and 2024. No assets were transferred from one hierarchy level to another during the years ended December 31, 2025 or 2024.
($ in thousands)Fair ValueQuoted Prices
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2025
Assets:
Available for sale securities:
U.S. government agency securities$20,616 $— $20,616 $— 
Mortgage-backed securities195,027 — 195,027 — 
Other debt securities4,715 — 4,715 — 
Total available for sale securities220,358 — 220,358 — 
Equity securities6,186 — 6,186 — 
TBA forward trades11 — 11 — 
Loans held for sale32,540 — 32,540 — 
IRLCs91 — — 91 
Total assets at fair value$259,186 $— $259,095 $91 
Liabilities:
IRLCs$1 $— $— $1 
TBA forward trades59 — 59 — 
Total liabilities at fair value$60 $— $59 $1 
($ in thousands)Fair ValueQuoted Prices
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2024
Assets:
Available for sale securities:
U.S. government agency securities$20,202 $— $20,202 $— 
Mortgage-backed securities122,384 — 122,384 — 
Other debt securities6,626 — 6,626 — 
Total available for sale securities149,212 — 149,212 — 
Equity securities5,814 — 5,814 — 
TBA forward trades164 — 164 — 
Loans held for sale19,606 — 19,606 — 
IRLCs113 — — 113 
Total assets at fair value$174,909 $— $174,796 $113 
Liabilities:
TBA forward trades$23 $— $23 $— 
Total liabilities at fair value$23 $— $23 $— 
Assets Measured at Fair Value on a Non-recurring Basis
Individually Evaluated Collateral-Dependent Loans
Loans for which repayment is substantially expected to be provided through the operation or sale of collateral are considered collateral dependent and are valued based on the estimated fair value of the collateral, less estimated costs to sell at the reporting date, where applicable. Management utilizes various methods to estimate fair value of the collateral including appraisals, discounted cashflow and automated valuation methods. Accordingly, collateral-dependent loans are classified within Level 3 of the fair value hierarchy.
OREO (Foreclosed Assets)
Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets establishing a new cost basis. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. The estimated fair value for foreclosed assets included in Level 3 are determined by independent market-based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods.
Repossessed Assets
All repossessed assets are recorded at lower of the estimated fair value of the properties, less expected selling costs, or the carrying amount of the defaulted loans. From time to time, non-recurring fair value adjustments are recorded to reflect partial write-downs based on current appraised value of an asset. The Company considers any valuation inputs related to repossessed assets to be Level 3 inputs. Fair value adjustments for these assets are recorded in other noninterest expense in the consolidated statements of income.
Other Assets Held for Sale
Other assets held for sale are carried at the lower of the carrying amount or fair value. The fair value is determined based on the appraisal value, listing price of the property or collateral provided by independent appraisers, and is adjusted for the estimated costs to sell. Due to the use of significant unobservable inputs, these assets are classified as Level 3 under the fair value hierarchy. Fair value adjustments for these assets are recorded in other noninterest expense in the consolidated statements of income.
The following tables set forth the Company’s assets subject to fair value adjustments (impairment) on a non-recurring basis as of December 31, 2025 and 2024 that are valued at lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Quantitative Information about Level 3 Fair Value Measurements
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRangeWeighted-Average
December 31, 2025
Non-recurring measurements:
Individually-evaluated collateral dependent loans:
Commercial real estate$19,696 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
60% - 71%
10%
68%
10%
Residential real estate520 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
1%
10%
Commercial— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
0%
10%
Consumer— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
0%
10%
Other real estate owned113 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
Repossessed assets2,879 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
60%
Quantitative Information about Level 3 Fair Value Measurements
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRangeWeighted-Average
December 31, 2024
Nonrecurring measurements:
Individually-evaluated collateral dependent loans:
Commercial real estate$2,220 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
62%
10%
38%
10%
Residential real estate817 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
55% - 100%
10%
17%
10%
Commercial— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
14% - 100%
10%
0%
10%
Consumer624 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
80% - 86%
10%
15%
10%
Other real estate owned179 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
Repossessed assets3,315 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
39%
Assets held for sale900 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
_________________________________
(1)Unobservable inputs were weighted by the relative fair value of the instruments. No range is presented only when one instrument was available.
(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Fair Value of Financial Instruments
Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the financial instrument fair value disclosure requirements, including the Company’s common stock, OREO, repossessed assets, premises and equipment and other assets and liabilities.
The following tables present the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2025 and 2024. Fair values for December 31, 2025 and 2024 were estimated using an exit price notion.
December 31, 2025Carrying AmountFair ValueFair Value Measurements
($ in thousands)Level 1Level 2Level 3
Assets
Cash and cash equivalents$355,566 $355,566 $355,566 $— $— 
Available for sale securities220,358 220,358 — 220,358 — 
Held to maturity securities414,827 378,116 — 378,116 — 
Equity securities 6,186 6,186 — 6,186 — 
Restricted securities17,989 N/A— N/A— 
Loans held for sale32,540 32,540 — 32,540 — 
TBA securities11 11 — 11 — 
Loans held for investment, at amortized cost, net4,841,466 4,767,143 — — 4,767,143 
Mortgage servicing rights5,142 5,861 — 5,861 — 
Accrued interest receivable18,551 18,551 — 18,551 — 
IRLCs91 91 — — 91 
Liabilities
Deposits:
Noninterest-bearing$1,587,953 $1,587,953 $— $1,587,953 $— 
Interest-bearing checking852,585 852,585 — 852,585 — 
Money market and savings1,814,928 1,814,928 — 1,814,928 — 
Time deposits1,267,487 1,265,740 — 1,265,740 — 
Brokered deposits10,911 10,923 — 10,923 — 
FHLB advances— — — — — 
TRUPS30,168 29,586 — 29,586 — 
Subordinated debt58,893 58,064 — 58,064 — 
TBA Securities59 59 — 59 — 
Accrued interest payable2,977 2,977 — 2,977 — 
IRLCs1 1 — — 1 
December 31, 2024Carrying AmountFair ValueFair Value Measurements
($ in thousands)Level 1Level 2Level 3
Assets
Cash and cash equivalents$459,851 $459,851 $459,851 $— $— 
Available for sale securities149,212 149,212 — 149,212 — 
Held to maturity securities481,077 424,734 — 424,734 — 
Equity securities5,814 5,814 — 5,814 — 
Restricted securities20,253 20,253 — 20,253 — 
Loans held for sale19,606 19,606 — 19,606 — 
TBA securities164 164 — 164 — 
Loans held for investment, at amortized cost, net4,714,078 4,561,449 — — 4,561,449 
Mortgage servicing rights5,874 5,874 — 5,874 — 
Accrued interest receivable19,570 19,570 — 19,570 — 
IRLCs113 113 — — 113 
Liabilities
Deposits:
Noninterest-bearing$1,562,815 $1,562,815 $— $1,562,815 $— 
Interest bearing checking978,076 978,076 — 978,076 — 
Money market and savings1,805,884 1,805,884 — 1,805,884 — 
Time deposits1,181,561 1,179,716 — 1,179,716 — 
Brokered deposits— — — — — 
FHLB advances50,000 50,201 — 50,201 — 
TRUPS29,847 27,952 — 27,952 — 
Subordinated debt43,870 43,669 — 43,669 — 
TBA securities23 23 — 23 — 
Accrued interest payable3,398 3,398 — 3,398 — 
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
In the normal course of business, to meet the financial needs of its customers, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Commitments to make loans are generally made for a period of 90 days or less.
The following table provides information on commitments outstanding as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024
Commitments to extend credit
Fixed$209,737 $261,794 
Variable503,713 497,686 
Total commitments to extend credit$713,450 $759,480 
Letters of credit
Fixed$6,495 $8,980 
Variable17,830 18,981 
Total letters of credit$24,325 $27,961 
Total commitments outstanding$737,775 $787,441 
The Company had a reserve for off-balance sheet credit exposures of $2.0 million and $1.1 million as of December 31, 2025 and 2024, respectively. The reserve was estimated based on current expected credit losses to be experienced by the Company. Losses are charged against the allowance when management believes the required funding of these exposures is uncollectible. While this evaluation is completed on a regular basis, it is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.
In the normal course of business, the Company may become involved in litigation arising from banking, financial and other activities. Management, after consultation with legal counsel, does not anticipate that the future liability, if any, arising out of current proceedings will have a material effect on the Company’s financial condition, operating results or liquidity.
v3.25.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
In the normal course of banking business, loans are made to officers, directors and their affiliated interests. These loans are made on substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons who are not related to the Company and are not considered to involve more than the normal risk of collectability. As of December 31, 2025 and 2024, such loans outstanding, both direct and indirect (including guarantees), to directors, their associates and policy-making officers, totaled approximately $45.1 million and $54.3 million, respectively. During the years ended December 31, 2025 and 2024, loan additions were approximately $4.4 million and $8.2 million, respectively, and loan repayments and no longer reportable loans were approximately $18.5 million and $7.3 million, respectively. The Company held both direct and indirect deposit accounts on behalf of its executive officers, directors, their associates, and policy‑making officers. None of the related‑party deposit accounts were overdrawn, and the Bank did not maintain any compensating balance arrangements for these related parties during the years ended December 31, 2025 and 2024.
The Company leases a portion of one of its facilities to a law firm in which the Chairman of the Board of the Company and the Bank is a partner. In January 2022, the lease entered the final five-year renewal option under the leasing agreement. The total rent payments received were $324 thousand, $318 thousand and $311 thousand for the years ended December 31, 2025, 2024 and 2023. The law firm also reimburses the Company for its share of common area maintenance and utilities. In addition, the law firm represents the Company and the Bank in certain legal matters.
The Company leases its Fredericksburg, Virginia lending center from an entity in which director Michael B. Adams is a 25% owner and managing member. The current lease term expires on November 30, 2028. Shore United Bank paid this entity $108 thousand, $105 thousand and $51 thousand during the years ended December 31, 2025, 2024 and 2023, respectively. Mr. Adams is also the 100% owner and president of an entity to which the Company pays monthly fees in connection with common area maintenance for the Virginia lending center. The Company paid this entity $12 thousand, $12 thousand and $6 thousand during the years ended December 31, 2025, 2024 and 2023, respectively.
Consulting Agreement
On October 31, 2021, Shore United Bank entered into a Consulting Agreement with Alan J. Hyatt in connection with the company’s acquisition of Severn Bancorp, Inc., of which Mr. Hyatt was the Chairman, President and Chief Executive Officer. Under the terms of the Consulting Agreement, which terminates on October 31, 2026, Mr. Hyatt provides consulting services consisting of assisting us in business introductions, business development calls and business referrals; attending community functions sponsored by us; and assisting in any other matters or duties management may request. In consideration of the consulting services, Mr. Hyatt receives an annual fee of $150 thousand payable in equal monthly installments.
v3.25.4
Earnings per Common Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings per Common Share Earnings per Common Share
Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents (stock-based awards). The following table provides information relating to the calculation of earnings per common share for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands, except per share data)202520242023
Net income$59,506 $43,889 $11,228 
Average number of common shares outstanding33,392,81733,267,32826,572,217
Dilutive effect of common stock equivalents14,33817,8281,893
Average number of common shares used to calculate diluted EPS33,407,15533,285,15626,574,110
Anti-dilutive shares———
Basic net income per common share$1.78 $1.32 $0.42 
Diluted net income per common share$1.78 $1.32 $0.42 
There were zero anti-dilutive unvested restricted stock and performance stock unit awards excluded from the calculation of diluted earnings per common share for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees and merchant income. Noninterest revenue streams in-scope of Topic 606 are discussed below. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities.
Service Charges on Deposit Accounts
Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided.
Check orders and other deposit account-related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts.
Trust and Investment Fee Income
Trust and investment fee income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time, and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives.
Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.
Other Noninterest Income
Other noninterest income consists of fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit and credit card income, automated teller machine (“ATM”) fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Mastercard and Visa. ATM fees are primarily generated when a Company cardholder uses a third-party ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account
management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment.
The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands)202520242023
Noninterest income
In-scope of Topic 606:
Service charges on deposit accounts$6,295 $6,149 $5,501 
Trust and investment fee income3,705 3,367 3,608 
Interchange income7,085 6,741 5,714 
Other noninterest income3,768 4,653 3,512 
Noninterest income (in-scope of Topic 606)20,853 20,910 18,335 
Noninterest income (out-of-scope of Topic 606)11,835 10,237 14,824 
Total noninterest income$32,688 $31,147 $33,159 
Contract Balances
A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2025 and 2024, the Company did not have any significant contract balances.
v3.25.4
Parent Company Financial Information
 12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
Parent Company Financial Information Parent Company Financial Information
The following tables provide condensed financial information for Shore Bancshares, Inc. (Parent Company only).
SHORE BANCSHARES, INC. (PARENT COMPANY ONLY)
CONDENSED BALANCE SHEETS
($ in thousands)December 31, 2025December 31, 2024
ASSETS
Cash$21,654 $5,257 
Investment in subsidiaries648,599 605,286 
Other assets11,885 9,289 
TOTAL ASSETS$682,138 $619,832 
LIABILITIES
Accrued interest payable$839 $1,027 
Deferred tax liability140 251 
Other liabilities2,225 3,771 
Long-term debt89,061 73,717 
TOTAL LIABILITIES92,265 78,766 
STOCKHOLDERS’ EQUITY
Common stock334 333 
Additional paid-in capital360,554 358,112 
Retained earnings233,578 190,166 
Accumulated other comprehensive loss(4,593)(7,545)
TOTAL STOCKHOLDERS’ EQUITY589,873 541,066 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$682,138 $619,832 
SHORE BANCSHARES, INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF INCOME
Year Ended December 31,
($ in thousands)202520242023
INCOME
Dividends from subsidiaries$26,000 $17,000 $22,000 
Company owned life insurance income184 206 141 
Bargain purchase gain— — 8,816 
TOTAL INCOME26,184 17,206 30,957 
EXPENSES
Interest expense6,359 5,768 4,454 
Salaries and employee benefits408 598 358 
Legal and professional fees, including merger expenses1,929 1,636 5,164 
Other operating expenses890 1,032 776 
TOTAL EXPENSES9,586 9,034 10,752 
Income before income tax benefit and equity (deficit) in undistributed net income of subsidiaries16,598 8,172 20,205 
Income tax benefit(2,047)(1,678)(1,557)
Income before equity (deficit) in undistributed net income of subsidiaries18,645 9,850 21,762 
Equity (deficit) in undistributed net income of subsidiaries40,861 34,039 (10,534)
NET INCOME$59,506 $43,889 $11,228 
SHORE BANCSHARES, INC. (PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF CASH FLOWS
Year Ended December 31,
($ in thousands)202520242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$59,506 $43,889 $11,228 
Adjustments to reconcile net income to cash provided by operating activities:
Equity in undistributed net income of subsidiaries(40,861)(34,039)10,534 
Bargain purchase gain— — (8,816)
Amortization of debt issuance costs119 122 122 
Stock-based compensation expense1,890 1,730 1,174 
Company owned life insurance income(183)(208)(141)
Acquisition accounting adjustments865 926 557 
Net increase in other assets(2,104)(957)(1,267)
Net (decrease) increase in other liabilities(1,374)2,284 (682)
Net cash provided by operating activities17,858 13,747 12,709 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of company owned life insurance(309)(198)(249)
Return of subsidiary investment500 — — 
Cash acquired in the acquisition of TCFC, net of cash paid— — 88 
Net cash used in investing activities191 (198)(161)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of subordinated debt, net of issuance costs58,860 — — 
Redemption of subordinated debt(44,500)— — 
Common stock dividends paid(16,094)(16,013)(12,733)
Issuance of common stock82 376 385 
Net cash used in financing activities(1,652)(15,637)(12,348)
Net increase (decrease) in cash and cash equivalents16,397 (2,088)200 
Cash and cash equivalents at beginning of year5,257 7,345 7,145 
Cash and cash equivalents at end of year$21,654 $5,257 $7,345 
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
The Company recognizes that the security of our banking operations is essential to protecting our customers, maintaining our reputation, and preserving the value of the Company. The Board of Directors, through the Board Risk Oversight Committee, provides direction and oversight of our enterprise-wide risk management framework, and cybersecurity represents a component of our overall approach to enterprise-wide risk management. The Enterprise Risk Management Program establishes policies and procedures for assessing the effectiveness and efficiency of information security controls related to both design and operations. We use a variety of tools, including the Federal Financial Institutions Examination Council Cybersecurity Assessment Tools, to help us identify our cybersecurity risks and determine our cybersecurity preparedness. This assessment tool incorporates regulatory guidance. In general, we seek to address cybersecurity risks through a comprehensive, cross-functional approach focused on the confidentiality, security and availability of the information that we collect and store by identifying, preventing, and mitigating cybersecurity threats and effectively responding to cybersecurity incidents that may occur.
As one of the elements of our overall enterprise-wide risk management approach, the Enterprise Risk Management Program is focused on the following key areas:
•Security Operation and Governance: As discussed in more detail under the section titled “Cybersecurity Governance,” the Board Risk Oversight Committee oversees our information security and cybersecurity risk management.
•Collaborative Approach: We have implemented a cross-functional approach to identifying, assessing, preventing and mitigating cybersecurity threats and incidents, while also implementing controls and procedures that provide for the escalation of certain cybersecurity incidents so that decisions regarding the public disclosure and reporting of such incidents can be made by management.
•Security Competencies: We have security competencies and tools designed to evaluate security risks and to protect the confidentiality, integrity and availability of our information systems and data. These assets represent a blend of various management (e.g., policies), operational (e.g., standards and processes), and technical controls (e.g., tools and configurations).
•Cyber Defense and Incident Response Plan: We utilize sophisticated security monitoring and detection tools for continuous monitoring of our information systems at all times. We utilize third-party tools and solutions to actively deliver threat analysis, vulnerability management, intrusion detection, intrusion hunting and red team exercises. We also receive the latest cybersecurity alerts and threat intelligence from government agencies and information sharing and analysis centers. Our Incident Response Plan reduces the risks related to security incidents by providing guidance on our response to incidents by focusing on the coordination of personnel, policies and procedures to ensure incidents are detected, analyzed and managed.
•Third-Party Risk Management: Management of third parties, including vendors and service providers, is conducted through a risk-based approach, with the level of due diligence driven by risk factors established by the Third-Party Risk Management Program. The process provides awareness and collaboration across all internal teams including Information Technology and Risk Management. A review process is conducted on new or significantly changed key third parties to ensure certain cybersecurity baseline requirements are met and cybersecurity incidents are appropriately disclosed. This process advocates for appropriate standards and controls, based on risk factors, to secure the third parties’ information systems, and to ensure the third parties have recovery plans in place.
•Security Awareness and Education: We provide annual, mandatory training for employees regarding security awareness to better equip them with the understanding of how to properly use and protect the computing resources entrusted to them, and to communicate our information security policies, standards, processes and practices. Additionally, we conduct monthly email security awareness testing, with follow-up training assigned when deemed necessary.
We leverage continuous monitoring and regular risks assessments to identify current and potential cybersecurity risks. Technical vulnerabilities are identified using automated vulnerability scanning tools, penetration testing, and system management tools, whereas non-technical vulnerabilities are identified via process or procedural reviews. We conduct a variety of assessments throughout the year, both internally and through third parties. Vulnerability assessment and penetration tests are performed on a regular basis to provide us with an unbiased view of our environment and controls. Vulnerabilities identified during these assessments are inventoried in a centralized tracking system and reported to management on a regular basis. A multi-step approach is applied to identify, report and remediate these vulnerabilities, and we adjust our information security policies, standards, processes and practices as necessary based on the information provided by these assessments. Summarized results of key assessments are reported to the Board Risk Oversight Committee.
We engage third parties on a regular basis to assess, test and assist with the implementation of our cybersecurity program to detect and manage cybersecurity risks, including but not limited to third parties who assist with monitoring our information security systems and auditors who assist with conducting penetration tests.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] The Board of Directors, through the Board Risk Oversight Committee, provides direction and oversight of our enterprise-wide risk management framework, and cybersecurity represents a component of our overall approach to enterprise-wide risk management. The Enterprise Risk Management Program establishes policies and procedures for assessing the effectiveness and efficiency of information security controls related to both design and operations. We use a variety of tools, including the Federal Financial Institutions Examination Council Cybersecurity Assessment Tools, to help us identify our cybersecurity risks and determine our cybersecurity preparedness. This assessment tool incorporates regulatory guidance. In general, we seek to address cybersecurity risks through a comprehensive, cross-functional approach focused on the confidentiality, security and availability of the information that we collect and store by identifying, preventing, and mitigating cybersecurity threats and effectively responding to cybersecurity incidents that may occur.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
The Board of Directors, through the Board Risk Oversight Committee, provides direction and oversight of the enterprise-wide risk management framework of the Company, including the management of risks arising from cybersecurity threats. The Board Risk Oversight Committee reviews and approves the Information Security Policy, which includes our cybersecurity risk management program. The Board of Directors receives regular presentations and updates on cybersecurity risks, including the threat environment, evolving standards, projects and initiatives, risk and vulnerability assessments, independent audit reviews, and technological trends. The Board of Directors also receives information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the full Board of Directors discusses our approach to cybersecurity risk management.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Directors, through the Board Risk Oversight Committee, provides direction and oversight of the enterprise-wide risk management framework of the Company, including the management of risks arising from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board Risk Oversight Committee reviews and approves the Information Security Policy, which includes our cybersecurity risk management program. The Board of Directors receives regular presentations and updates on cybersecurity risks, including the threat environment, evolving standards, projects and initiatives, risk and vulnerability assessments, independent audit reviews, and technological trends. The Board of Directors also receives information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the full Board of Directors discusses our approach to cybersecurity risk management.
Cybersecurity Risk Role of Management [Text Block] The Information Security Officer, under the guidance of our Chief Risk Officer and Director of Operational Risk, works collaboratively across the Company to implement a program designed to protect our information systems and data from cybersecurity risks. The Information Security Officer is responsible for assessing and managing cybersecurity risks, responding to any cybersecurity incidents in accordance with our Incident Response Plan and Business Continuity Plan, and reporting incidents to appropriate individuals in accordance with the Incident Response Plan. To facilitate the success of our cybersecurity risk management program, multidisciplinary teams throughout the Company are deployed to address cybersecurity threats and to respond to cybersecurity incidents. The Information Technology and the Operational Risk Management teams monitor the prevention, detection, mitigation and remediation of cybersecurity threats and incidents and report such threats and incidents to the Information Security Officer and Chief Information Officer and ultimately the Board Risk Oversight Committee, when appropriate.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Information Security Officer, under the guidance of our Chief Risk Officer and Director of Operational Risk, works collaboratively across the Company to implement a program designed to protect our information systems and data from cybersecurity risks.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The Information Security Officer holds the Certified Information Security Manager Certification and is supported by additional team members with extensive backgrounds in cybersecurity and related fields.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Information Security Officer is responsible for assessing and managing cybersecurity risks, responding to any cybersecurity incidents in accordance with our Incident Response Plan and Business Continuity Plan, and reporting incidents to appropriate individuals in accordance with the Incident Response Plan. To facilitate the success of our cybersecurity risk management program, multidisciplinary teams throughout the Company are deployed to address cybersecurity threats and to respond to cybersecurity incidents. The Information Technology and the Operational Risk Management teams monitor the prevention, detection, mitigation and remediation of cybersecurity threats and incidents and report such threats and incidents to the Information Security Officer and Chief Information Officer and ultimately the Board Risk Oversight Committee, when appropriate.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries (collectively referred to in these Notes as the “Company”), with all significant intercompany transactions eliminated. The accounting and reporting policies of the Company conform with generally accepted accounting principles in the United States of America (“GAAP”). For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.
Principles of Consolidation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries (collectively referred to in these Notes as the “Company”), with all significant intercompany transactions eliminated. The accounting and reporting policies of the Company conform with generally accepted accounting principles in the United States of America (“GAAP”). For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.
Nature of Operations
Nature of Operations
The Company engages in the banking business through Shore United Bank, N.A. (the “Bank”), a national banking association with trust powers with locations in Maryland, Delaware and Virginia. The Company’s primary source of revenue is derived from interest earned on commercial, residential mortgage and other loans, and fees charged in connection with lending and other banking services. The Company engages in financial service offerings through Wye Financial Partners and offers corporate trustee services through Wye Trust, a division of the Bank. The Bank also conducts secondary market lending activities. Mid-Maryland Title Company, Inc. (the “Title Company”), engaged in title work related to real estate transactions. The Title Company ceased conducting real estate closings effective March 31, 2025.
Use of Estimates
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates.
Investments – Debt and Equity Securities
Investments – Debt Securities
Investments in debt securities are classified as either held to maturity (“HTM”), available for sale (“AFS”), or trading, based on management’s intent. Currently, the Company has classified its debt securities within the AFS and HTM classifications. Debt securities purchased with the positive intent and ability to hold to maturity are classified as HTM and are recorded at amortized cost, net of any allowance for credit losses (“ACL”). Debt securities not classified as HTM are classified as AFS and are carried at estimated fair value with the corresponding unrealized gains and losses recognized in other comprehensive income (loss).
Gains or losses are recognized in net income on the trade date using the amortized cost of the specific security sold. Purchase premiums are recognized in interest income using the effective interest rate method over the period from purchase to maturity or, for callable securities, the earliest call date, and purchase discounts are recognized in the same manner from purchase to maturity.
The Company has elected to exclude accrued interest receivable from the amortized cost basis and fair value of its HTM and AFS debt securities and has included such accrued interest of $2.1 million and $2.5 million at December 31, 2025 and 2024, respectively, within accrued interest receivable on the consolidated balance sheets. The Company has securities that have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. At December 31, 2025, the aggregate carrying value of pledged AFS and HTM pledged securities was $69.4 million and $218.6 million, respectively. The comparable amounts as of December 31, 2024 were $67.9 million and $197.5 million, respectively.
Investments – Equity Securities
Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Any equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. Restricted equity securities are carried at cost and are periodically evaluated for impairment based on the ultimate recovery of par value. The entirety of any impairment on equity securities is recognized in earnings.
Allowance for Credit Losses – Securities and Loans Held for Investment
Allowance for Credit Losses – Securities
The Company evaluates its available for sale and held to maturity debt securities portfolios for expected credit losses as of the valuation date under ASC 326. For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it would be required to sell, the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through income during the current period. For available for
sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other driving factors. If the Company's assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an ACL is recorded for the credit loss (which represents the difference between the expected cash flows and amortized cost basis), limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.
The entire amount of an impairment loss is recognized in earnings only when: (1) the Company intends to sell the security; or (2) it is more likely than not that the Company will have to sell the security before recovery of the Company's amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in stockholders’ equity as comprehensive income, net of deferred taxes.
Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when the Company believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a noncredit-related impairment.
As part of its estimation process, the Company has elected to exclude accrued interest from the amortized cost basis of available for sale debt securities and report accrued interest separately in other assets in the consolidated balance sheet. Available for sale debt securities are placed on nonaccrual status when the Company no longer expects to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on nonaccrual status. Accordingly, the Company does not recognize an allowance for credit loss against accrued interest receivable. This approach is consistent with the Company’s nonaccrual policy implemented for its loan portfolio.
The Company separately evaluates its held to maturity investment securities for any credit losses. If it determines that a security indicates evidence of deteriorated credit quality, the security is individually-evaluated and a discounted cash flow analysis is performed and compared to the amortized cost basis.
Allowance for Credit Losses – Loans Held for Investment
An ACL is estimated on loans held for investment, excluding loans carried at fair value. The ACL on loans is established through charges to earnings in the form of a provision for credit losses. Loan losses are charged against the ACL for the difference between the carrying value of the loan and the estimated net realizable value or fair value of the collateral, if collateral dependent, when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.
The allowance represents management’s current estimate of expected credit losses over the contractual term of loans held for investment, and is recorded at an amount that, in management’s judgment, reduces the recorded investment in loans to the net amount expected to be collected. No ACL is recorded on accrued interest receivable and amounts written-off are reversed by an adjustment to interest income. Management’s judgment in determining the level of the allowance is based on evaluations of historical loan losses, current conditions and reasonable and supportable forecasts relevant to the collectability of loans. The methodology for estimating the amount reported in the ACL is the sum of two main components, an allowance assessed on a collective basis for pools of loans that share similar risk characteristics and an allowance assessed on individual loans that do not share similar risk characteristics with other loans. Loans that share common risk characteristics are evaluated collectively using a cash flow approach. The cash flow approach used by the Company utilizes loan-level cash flow projections and pool-level assumptions. For loans that do not share risk characteristics with other loans, the ACL is measured based on the net realizable value, that is, the difference between the expected future cash flows and the amortized cost basis of the loan. When a loan is collateral-dependent and the repayment is expected to be provided substantially through the operation or sale of the collateral, the ACL is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral.
Cash flow projections and estimated expected losses on loans that share common risk characteristics are based in part on forecasts of independent economic variables, namely, the national unemployment rate, 10-year Treasury rate and changes in GDP that are reasonable and supportable over a 12-month period and incorporated into the estimate of expected credit losses using a statistical regression analysis. For periods beyond those for which reasonable and supportable forecasts are available, projections are based on a 12-month straight-line reversion of the corresponding economic independent variable from the last forecast to a historical average level.
Management’s estimate of the ACL on loans that are collectively evaluated also includes a qualitative assessment of available information relevant to assessing collectability that is not captured in the quantitative loss estimation process. Factors considered by management include concentrations of loans to specific industry segments, the volume and severity of delinquencies and adversely classified loan balances and the value of underlying collateral, and a number of other economic indicators intended to account for the imprecision inherent in forecasting economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available.
Loans Held for Investment
Loans Held for Investment
The Company’s recorded investment in loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay off generally is reported at the unpaid principal balances adjusted for charges-offs, unearned discounts, any deferred fees or costs on originated loans, and the ACL. The Company has elected to exclude accrued interest receivable from the amortized cost basis of its loans held for investment and has included such accrued interest of $16.3 million and $16.7 million at December 31, 2025 and 2024, respectively, within accrued interest receivable on the consolidated balance sheets. Interest on loans is recorded to interest income based on the contractual rates and the amount of outstanding principal of the loans. Loan fees and origination costs are deferred and the net amount is amortized as an adjustment of the related loan’s yield using the level-yield method.
Loans acquired in a business combination are recorded at estimated fair value on the date of acquisition. In the case of loans that have experienced more than insignificant deterioration in credit quality since origination as of the acquisition date, the loan’s amortized cost basis is increased above estimated fair value by the amount of expected credit losses as of the acquisition date, and a corresponding ACL is also recorded.
A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier if collection is uncertain. Any accrued interest receivable on loans placed on nonaccrual status is reversed by an adjustment to interest income. Loans greater than 90 days past due may remain on accrual status if management determines it is well secured and in the process of collection. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed.
In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated balance sheets when they are funded.
In the normal course of banking business, risks related to specific loan segments are as follows:
Commercial Real Estate – Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied properties where an established banking relationship exists and involves investment properties for multi-family (5+), warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and
commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies, which can adversely impact cash flow.
Residential Real Estate – Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral.
Construction – Construction loans are offered primarily to builders and individuals to finance the construction of single-family dwellings. In addition, the Bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value.
Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. The Company discontinued the issuance of new marine loans and only services the existing portfolio at December 31, 2025.
Consumer – Consumer loans include installment loans and personal lines of credit. The credit risk of consumer loans is similar to that of residential real estate loans described above, as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan.
Credit Cards – Unsecured credit card loans were offered to our commercial and consumer customers. Credit risk factors include the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness or personal bankruptcy, among other factors. In 2024, the Company discontinued the issuance of new credit cards (except to select existing customers) and only services the existing portfolio at December 31, 2025.
Transfers of Loans Held for Sale (“LHFS”) to Loans Held for Investment (“LHFI”)
Transfers of Loans Held for Sale (“LHFS”) to Loans Held for Investment (“LHFI”)
The Company may, from time to time, transfer LHFS to LHFI. Transfers of LHFS to LHFI are accounted for in accordance with the underlying accounting applied to the loan prior to its transfer. For loans where the fair value option had been elected, the Company continues to account for the loan at fair value in the LHFI portfolio. Subsequent changes in the fair value of these loans are recorded in interest income. The Company had a $649 thousand transfer from LHFS to LHFI during the year ended December 31, 2025 and no transfers from LHFS to LHFI during the years ended December 31, 2024 and 2023.
Reserve for Unfunded Commitments
Reserve for Unfunded Commitments
The Company records a reserve within other liabilities for expected credit losses on commitments to extend credit that are not unconditionally cancellable by the Company. The reserve for unfunded commitments is measured based on the principles utilized in estimating the ACL on loans and an estimate of the amount of unfunded commitments expected to be advanced. Changes in the reserve for unfunded commitments are recorded through the provision for credit losses.
Loans Held For Sale
Loans Held For Sale
The Company has elected to carry its mortgage loans originated for sale at fair value. Fair value is determined based on outstanding investor commitments or, in the absence of such commitments, on current investor yield requirements or third-party pricing models. Fair value adjustments are recorded at each balance sheet date with the changes in fair value recognized in mortgage banking revenue in the consolidated statements of income. Gains and losses on loan sales are determined based on the differential between a loan’s carrying value and sales price and are recognized through mortgage-banking revenue in the consolidated statements of income. LHFS are sold either with the mortgage servicing rights (“MSRs”) released or retained by the Bank.
Mortgage Servicing Rights
Mortgage Servicing Rights
When mortgage loans are sold with servicing retained, the MSRs are initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenue. Servicing rights are assessed for impairment quarterly, based on fair value, with impairment recorded through income. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. Servicing fee income is recorded in the mortgage banking revenue in the consolidated statements of income.
Premises and Equipment
Premises and Equipment
Land is carried at cost and premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Useful lives range from three to ten years for furniture, fixtures and equipment; three to five years for computer hardware and data handling equipment; and ten to 40 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the remaining term of the respective lease or useful life, whichever is shorter. Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of an asset are capitalized and depreciated over the estimated remaining life of the asset.
Long-lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset.
Segment Reporting
Segment Reporting
The Company’s reportable segment is determined by the Chief Executive Officer, who is designated the chief operating decision maker (“CODM”), based upon information provided about the Company’s product and services offered. The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are then aggregated if operating performance of product and customers are similar. The CODM evaluates the financial performance of the Company’s business components such as revenue streams, significant expenses, and budget to actual results in assessing the Company’s segment and in determination of allocated resources. While the CODM monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial services operations are considered by management to be aggregated in one reportable operating segment. Refer to the “Consolidated Financial Statements” included in Part II, Item 8 of this Annual Report on Form 10-K.
Business Combinations
Business Combinations
The Company accounts for business combinations utilizing the acquisition method of accounting, which requires purchased assets and assumed liabilities be recorded at their respective fair values. In numerous instances, the fair values of acquired assets and assumed
liabilities are ascertained by estimating the anticipated future cash flows from those assets and liabilities and discounting them at appropriate market rates. The Company determines the fair values of loans, core deposit intangibles and deposits with the assistance of a third-party vendor.
The most significant assessment of fair value in our accounting for business combinations relates to the valuation of an acquired loan portfolio. At acquisition, loans are classified as either (i) purchase credit-deteriorated (“PCD”) loans or (ii) non-PCD loans, and are recorded at fair value on the date of acquisition. PCD loans are those for which there is more than insignificant evidence of credit deterioration since origination. Fair values are determined primarily through a discounted cash flow approach that considers the acquired loans’ underlying characteristics, including account types, remaining terms, annual interest rates, interest types, timing of principal and interest payments, current market rates, and remaining balances. Estimates of fair value also include estimates of default, loss severity and estimated prepayments.
At acquisition, an allowance for PCD loans is determined based upon the Company’s methodology for estimating the ACL on loans. This allowance is credited to the ACL on loans with a corresponding adjustment to the amortized cost basis of the loan on the date of the acquisition. The difference between the new amortized cost basis and the unpaid principal balance is either a noncredit discount or premium that is amortized or accreted to interest income over the remaining life of the loan. Disposals of PCD loans, which may include sale of loans to third parties, receipt of payments in full or in part from the borrower or foreclosure of the collateral, result in removal of the loan from the loan portfolio at its carrying amount. For non-PCD loans, an ACL is established in a manner that is consistent with the Company’s originated loans. The ACL is determined using the Company’s methodology and the related ACL for non-PCD loans is recorded through a charge to the provision for credit losses in the period in which the loans are purchased or acquired. The entirety of any purchase discount or premium on non-PCD loans is amortized or accreted to interest income over the remaining life of the loan.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. Goodwill and other intangible assets are initially required to be recorded at fair value. Determining fair value is subjective, requiring the use of estimates, assumptions and management judgment.
Goodwill is tested at least annually for impairment, usually during the fourth quarter, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of goodwill below its carrying value. Intangible assets that have finite lives are amortized over their estimated useful lives and also are subject to impairment testing. If the fair value of a reporting unit is less than its book value, an impairment charge may be required to write down the carrying value of the related goodwill to fair value. As of December 31, 2025, the Company had one operating segment, the banking segment. Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions and are amortized using an accelerated method over their estimated useful lives, which range from seven to ten years.
During the years ended December 31, 2025 and 2024, goodwill and other intangible assets were subjected to assessments for impairment. No impairment charges were recognized in either year. Our assessment of goodwill concluded it was not more likely than not that the fair value of the Company’s reporting unit was less than its carrying amount.
Borrowings and Subordinated Debt
Borrowings
Short-term and long-term borrowings are comprised primarily of Federal Home Loan Bank (“FHLB”) borrowings. The Company’s short-term borrowings may also include advances on other lines of credit with correspondent banks or repurchase agreements with customers. The repurchase agreements are securities sold to the Company’s customers, at the customers’ request, under a continuing “roll-over” contract that matures in one business day. The underlying securities sold are U.S. government agency securities, which are segregated from the Company’s other investment securities by its safekeeping agents.
Subordinated Debt
Subordinated debt is carried at its outstanding principal balance, net of any unamortized issuance costs and acquisition related fair value adjustments. For additional information on the Company’s subordinated debt, refer to Note 8 – “Borrowings.”
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents include cash, deposits with other financial institutions with original maturities fewer than 90 days and federal funds sold. Interest-bearing deposits in other financial institutions mature within 90 days or less.
Derivative Financial Instruments and Hedging
Derivative Financial Instruments and Hedging
The Company accounts for derivatives in accordance with Financial Accounting Standards Board (“FASB”) literature on accounting for derivative instruments and hedging activities. When we enter into a derivative contract, we designate the derivative as held for trading, an
economic hedge, or a qualifying hedge as detailed in the literature. The designation may change based upon management’s reassessment or changing circumstances. Derivatives utilized by the Company include interest rate lock commitments (“IRLCs”) and forward settlement contracts. IRLCs occur when we originate mortgage loans with interest rates determined prior to funding. Forward settlement contracts are agreements to buy or sell a quantity of a financial instrument, index, currency, or commodity at a predetermined future date, rate, or price.
We designate at inception whether a derivative contract is considered hedging or non-hedging. All of our derivatives are nonexchange traded contracts, and as such, their fair value is based on dealer quotes, pricing models, discounted cash flow methodologies, or similar techniques for which the determination of fair value may require significant management judgment or estimation.
For qualifying hedges, we formally document at inception all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various accounting hedges. We primarily utilize derivatives to manage interest rate sensitivity.
Fair Value
Fair Value
The Company measures certain financial assets and liabilities at fair value and also makes disclosures about certain financial instruments that are not measured at fair value in the consolidated balance sheets. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants, on the measurement date. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, and other factors, particularly in the absence of broad markets for specific terms. Changes in assumptions or in market conditions could significantly affect these estimates.
Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities on a recurring basis and to determine fair value disclosures. Available for sale securities and equity securities with readily determinable fair values are recorded at fair value on a recurring basis, along with other mortgage-related items identified in the recurring fair value table below. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as collateral-dependent loans, repossessed assets and OREO (foreclosed assets). These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.
Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are:
•Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date.
•Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
Assets Measured at Fair Value on a Recurring Basis
Available for Sale Securities
Fair value measurement of AFS securities is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities, if any, as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. government agency securities and mortgage-backed securities issued or guaranteed by U.S. government-sponsored entities as Level 2.
Equity Securities
Fair value measurement for equity securities is based on quoted market prices retrieved by the Company via online resources. Although these securities have readily available fair market values, the Company determined that they should be classified as level 2 investments in the fair value hierarchy due to not being considered traded in a highly active market.
Loans Held for Sale
Loans held for sale are carried at fair value, which is determined based on Mark to Trade for allocated/committed loans or Mark to Market analysis for unallocated/uncommitted loans based on third-party pricing models (Level 2).
IRLCs
The Company utilizes a third-party specialist model to estimate the fair value of IRLCs, which are valued based upon mortgage securities (TBA) prices less estimated costs to process and settle the loan. Fair value is adjusted for the estimated probability of the loan closing with the borrower (Level 3).
Income Taxes
Income Taxes
The Company and its subsidiary file a consolidated federal income tax return. The Company accounts for income taxes using the liability method in accordance with appropriate accounting guidance. Under this method, deferred tax assets and liabilities are determined by applying the applicable federal and state income tax rates to cumulative temporary differences. These temporary differences represent differences between financial statement carrying amounts and the corresponding tax bases of certain assets and liabilities. Deferred taxes result from such temporary differences.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income, recoverable taxes paid in prior years and tax planning strategies. The Company evaluates all positive and negative evidence before determining whether a valuation allowance is deemed necessary regarding the realization of deferred tax assets. The Company recognizes accrued interest and penalties as a component of tax expense.
The provision for income taxes includes the impact of reserve provisions and changes in the reserves that are considered appropriate, as well as the related net interest and penalties. In addition, the Company is subject to the continuous examination of its income tax returns by the IRS and other tax authorities that may assert assessments against the Company. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations and assessments to determine the adequacy of its provision for income taxes. The Company remains subject to examination for tax years ending on or after December 31, 2022.
Basic and Diluted Earnings Per Common Share
Basic and Diluted Earnings Per Common Share
Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding and does not include the effect of any potentially dilutive common stock equivalents. Included in this calculation due to dividend participation rights are restricted stock awards that have been granted. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares outstanding, adjusted for the effect of any potentially dilutive common stock equivalents.
Transfers of Financial Assets
Transfers of Financial Assets
Transfers of financial assets are accounted for as sales at the time when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Stock-Based Compensation
Stock-Based Compensation
The Company may grant share-based awards to employees and non-employee directors in the form of restricted stock and restricted stock units (“RSUs”). The fair value of restricted stock and RSUs is determined based on the closing price of the Company’s common stock on the date of grant. The Company recognizes compensation expense related to equity compensation on a straight-line basis over the vesting period for service-based awards. When equity awards are subject to performance conditions, the awards are subsequently remeasured in each reporting period until settlement based on the quantity of awards for which it is probable that the performance conditions will be achieved. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Company’s common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Company’s common stock at the time of grant. Expense related to shared-based compensation is recorded in the statements of income as a component of salaries and employee benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to additional paid-in capital.
Advertising Costs
Advertising Costs
Advertising costs are generally expensed as incurred.
Comprehensive Income
Comprehensive Income
Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized holding gains and losses on available for sale securities, net of any gains recognized from the sale of available for sale securities.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pre-tax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. The Company adopted this ASU prospectively on January 1, 2025. Refer to Note 14 – Income Taxes for additional details related to the impact that adoption of this ASU had on the Company’s consolidated financial statements and related disclosures.
Revenue Recognition
Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees and merchant income. Noninterest revenue streams in-scope of Topic 606 are discussed below. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities.
Service Charges on Deposit Accounts
Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided.
Check orders and other deposit account-related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts.
Trust and Investment Fee Income
Trust and investment fee income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time, and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives.
Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.
Other Noninterest Income
Other noninterest income consists of fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit and credit card income, automated teller machine (“ATM”) fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Mastercard and Visa. ATM fees are primarily generated when a Company cardholder uses a third-party ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account
management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment.
v3.25.4
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Summary of Available-for-Sale Securities Reconciliation
The following tables provide information on the amortized cost and estimated fair values of investment securities as of December 31, 2025 and 2024.
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Available for sale securities(1):
December 31, 2025
U.S. Treasury and government agency securities$22,303 $2 $1,689 $20,616 
Mortgage-backed securities200,105 331 5,409 195,027 
Other debt securities(2)
4,269 446 — 4,715 
Total$226,677 $779 $7,098 $220,358 
December 31, 2024
U.S. Treasury and government agency securities$22,984 $4 $2,786 $20,202 
Mortgage-backed securities130,439 84 8,139 122,384 
Other debt securities(2)
6,170 469 13 6,626 
Total$159,593 $557 $10,938 $149,212 
____________________________________
(1)No available for sale (“AFS”) securities were sold during the years ended December 31, 2025 and 2024.
(2)Other debt securities includes corporate and municipal bond obligations of state and political entities.
Summary of Held-to-Maturity Securities Reconciliation
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueAllowance for Credit Losses
Held to maturity securities:
December 31, 2025
U.S. Treasury and government agency securities$104,836 $2 $4,513 $100,325 $— 
Mortgage-backed securities303,129 255 32,167 271,217 — 
Other debt securities(1)
6,961 33 420 6,574 99 
Total$414,926 $290 $37,100 $378,116 $99 
December 31, 2024
U.S. Treasury and government agency securities$132,560 $— $8,555 $124,005 $— 
Mortgage-backed securities336,755 — 47,234 289,521 — 
Other debt securities(1)
11,965 19 776 11,208 203 
Total$481,280 $19 $56,565 $424,734 $203 
____________________________________
(1)Other debt securities includes corporate and municipal bond obligations of state and political entities.
Summary of Activity in Allowance for Credit Losses on Held to Maturity Securities
The following table summarizes the activity in the allowance for credit losses (“ACL”) on held to maturity (“HTM”) securities for the periods presented.
Year Ended December 31,
($ in thousands)202520242023
Balance, beginning of period$203 $94 $— 
Provision for (reversal of) credit losses, other debt securities(104)109 94 
Balance, end of period$99 $203 $94 
Summary of Available-For-Sale Securities, Continuous Unrealized Loss Position, Fair Value
The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024.
Less than 12 MonthsMore than 12 MonthsTotal
($ in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
December 31, 2025
Available for sale securities:
U.S. Treasury and government agency securities$— $— $18,027 $1,689 $18,027 $1,689 
Mortgage-backed securities102,954 531 47,656 4,878 150,610 5,409 
Other debt securities— — — — — — 
Total$102,954 $531 $65,683 $6,567 $168,637 $7,098 
Less than 12 MonthsMore than 12 MonthsTotal
($ in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
December 31, 2024
Available for sale securities:
U.S. Treasury and government agency securities$207 $— $17,422 $2,786 $17,629 $2,786 
Mortgage-backed securities56,913 710 48,782 7,429 105,695 8,139 
Other debt securities— — 1,988 13 1,988 13 
Total$57,120 $710 $68,192 $10,228 $125,312 $10,938 
Summary of Securities Debt Maturities
The following table provides information on the amortized cost and estimated fair values of investment securities by contractual maturity date at December 31, 2025.
Available for SaleHeld to Maturity
($ in thousands)Amortized CostFair ValueAmortized CostFair Value
Due in one year or less$2,461 $2,463 $32,564 $32,391 
Due after one year through five years21,330 19,808 63,596 60,829 
Due after five years through ten years2,529 2,823 5,488 5,105 
Due after ten years252 237 10,149 8,574 
Total non-mortgage-backed securities$26,572 $25,331 $111,797 $106,899 
Mortgage-backed securities200,105 195,027 303,129 271,217 
Total$226,677 $220,358 $414,926 $378,116 
Summary of Investment Securities Pledged as Collateral
The following table sets forth the amortized cost and estimated fair values of securities that have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase at December 31, 2025 and 2024.
December 31, 2025December 31, 2024
($ in thousands)Amortized CostFair ValueAmortized CostFair Value
Pledged available for sale securities$75,123 $69,369 $76,280 $67,926 
Pledged held to maturity securities218,556 197,146 197,474 173,248 
v3.25.4
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Summary of Financing Receivables
The following table provides information about the principal classes of the loan portfolio at December 31, 2025 and 2024.
($ in thousands)December 31, 2025% of Total LoansDecember 31, 2024% of Total Loans
Commercial real estate$2,643,996 53.95 %$2,557,806 53.60 %
Residential real estate1,414,964 28.88 1,329,406 27.85 
Construction344,903 7.04 335,999 7.04 
Commercial226,006 4.61 237,932 4.99 
Consumer265,912 5.43 303,746 6.37 
Credit cards4,521 0.09 7,099 0.15 
Total loans4,900,302 100.00 %4,771,988 100.00 %
Less: allowance for credit losses(58,836)(57,910)
Total loans, net$4,841,466 $4,714,078 
Summary of Financing Receivable, Nonaccrual
The following tables provide information on the amortized cost basis on nonaccrual loans by loan class as of December 31, 2025 and 2024.
($ in thousands)Nonaccrual With No Allowance For Credit LossNonaccrual With An Allowance For Credit LossTotal Nonaccrual Loans
December 31, 2025
Nonaccrual loans:
Commercial real estate$6,135 $19,498 $25,633 
Residential real estate9,594 544 10,138 
Construction88 — 88 
Commercial 2,297 784 3,081 
Consumer898 74 972 
Credit cards— 48 48 
Total$19,012 $20,948 $39,960 
Interest income $285 $363 $648 
($ in thousands)Nonaccrual With No Allowance For Credit LossNonaccrual With An Allowance For Credit LossTotal Nonaccrual Loans
December 31, 2024
Nonaccrual loans:
Commercial real estate$8,192 $2,194 $10,386 
Residential real estate6,741 873 7,614 
Construction360 — 360 
Commercial458 549 1,007 
Consumer761 712 1,473 
Credit cards— 168 168 
Total$16,512 $4,496 $21,008 
Interest income$274 $65 $339 
($ in thousands)Nonaccrual Delinquent LoansNonaccrual Current LoansTotal Nonaccrual Loans
December 31, 2025
Nonaccrual loans:
Commercial real estate$2,809 $22,824 $25,633 
Residential real estate3,808 6,330 10,138 
Construction88 — 88 
Commercial196 2,885 3,081 
Consumer491 481 972 
Credit cards32 16 48 
Total$7,424 $32,536 $39,960 
($ in thousands)Nonaccrual Delinquent LoansNonaccrual Current LoansTotal Nonaccrual Loans
December 31, 2024
Nonaccrual loans:
Commercial real estate$7,268 $3,118 $10,386 
Residential real estate3,979 3,635 7,614 
Construction360 — 360 
Commercial70 937 1,007 
Consumer1,431 42 1,473 
Credit cards146 22 168 
Total$13,254 $7,754 $21,008 
Summary of Financing Receivable Credit Quality Indicators
The following table provides information on loan risk ratings as of December 31, 2025 and gross write-offs during the year ended December 31, 2025.
Term Loans by Origination YearRevolving
loans		Revolving
converted to
term loans		Total
($ in thousands)Prior20212022202320242025
December 31, 2025
Commercial real estate
Pass$939,986 $364,719 $556,924 $242,170 $139,929 $265,405 $14,703 $27,136 $2,550,972 
Special mention15,105 2,884 34,014 344 — — — — 52,347 
Substandard20,056 16,806 2,840 — 283 — 692 — 40,677 
Total$975,147 $384,409 $593,778 $242,514 $140,212 $265,405 $15,395 $27,136 $2,643,996 
Gross charge-offs$(109)$(2,640)$— $— $— $— $— $— $(2,749)
Residential real estate
Pass$317,764 $182,198 $275,869 $215,397 $147,517 $114,300 $131,075 $695 $1,384,815 
Special mention3,719 14,777 — 504 — — 65 — 19,065 
Substandard6,990 2,012 267 330 — 112 1,373 — 11,084 
Total$328,473 $198,987 $276,136 $216,231 $147,517 $114,412 $132,513 $695 $1,414,964 
Gross charge-offs$(5)$— $— $— $— $— $(45)$— $(50)
Construction
Pass$27,094 $7,238 $7,047 $28,868 $108,885 $151,738 $13,070 $632 $344,572 
Special mentions— — — — — — — — — 
Substandard88 — — — — 243 — — 331 
Total$27,182 $7,238 $7,047 $28,868 $108,885 $151,981 $13,070 $632 $344,903 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$23,379 $25,518 $19,739 $14,925 $29,307 $35,202 $70,493 $1,870 $220,433 
Special mention104 27 107 105 76 54 845 — 1,318 
Substandard424 1,055 758 527 — — 1,318 173 4,255 
Total$23,907 $26,600 $20,604 $15,557 $29,383 $35,256 $72,656 $2,043 $226,006 
Gross charge-offs$(71)$— $— $(329)$— $— $(381)$(31)$(812)
Consumer
Pass$7,954 $45,750 $88,990 $39,576 $31,597 $49,634 $769 $— $264,270 
Special mention— — 671 — — — — — 671 
Substandard1 29 396 445 41 59 — — 971 
Total$7,955 $45,779 $90,057 $40,021 $31,638 $49,693 $769 $— $265,912 
Gross charge-offs$(451)$(99)$(1,595)$(646)$(324)$— $(18)$— $(3,133)
Total
Pass$1,316,177 $625,423 $948,569 $540,936 $457,235 $616,279 $230,110 $30,333 $4,765,062 
Special mention18,928 17,688 34,792 953 76 54 910 — 73,401 
Substandard27,559 19,902 4,261 1,302 324 414 3,383 173 57,318 
Total loans by risk category$1,362,664 $663,013 $987,622 $543,191 $457,635 $616,747 $234,403 $30,506 $4,895,781 
Total gross charge-offs$(636)$(2,739)$(1,595)$(975)$(324)$— $(444)$(31)$(6,744)
The following table presents the amortized cost in credit card loans based on performing status and gross charge-off as of December 31, 2025 and gross write-offs during the year ended December 31, 2025. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.
Term Loans by Origination YearRevolving LoansRevolving Converted to Term LoansTotal
($ in thousands)Prior20212022202320242025
December 31, 2025
Credit cards
Performing$— $— $— $— $— $— $4,473 $— $4,473 
Nonperforming— — — — — — 48 — 48 
Total$— $— $— $— $— $— $4,521 $— $4,521 
Gross charge-offs$— $— $— $— $— $— $(535)$— $(535)
Total loans evaluated by performing status$— $— $— $— $— $— $4,521 $— $4,521 
Total gross charge-offs$(636)$(2,739)$(1,595)$(975)$(324)$— $(979)$(31)$(7,279)
Total recorded investment$1,362,664 $663,013 $987,622 $543,191 $457,635 $616,747 $238,924 $30,506 $4,900,302 
Summary of Aging of Loan Portfolio
The following table provides information on loan risk ratings as of December 31, 2024 and gross write-offs during the year ended December 31, 2024.
Term Loans by Origination YearRevolving
Loans		Revolving
Converted to
Term Loans		Total
($ in thousands)Prior20202021202220232024
December 31, 2024
Commercial real estate
Pass$822,391 $297,098 $435,084 $534,936 $250,482 $136,891 $24,966 $14,084 $2,515,932 
Special mention7,514 — 2,964 19,746 — — 417 — 30,641 
Substandard7,684 — 2,991 — — — 558 — 11,233 
Total$837,589 $297,098 $441,039 $554,682 $250,482 $136,891 $25,941 $14,084 $2,557,806 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Residential real estate
Pass$291,306 $78,568 $211,938 $295,402 $220,753 $101,005 $119,367 $613 $1,318,952 
Special mention1,529 518 — — — — — — 2,047 
Substandard5,414 — 1,342 290 885 — 476 — 8,407 
Total$298,249 $79,086 $213,280 $295,692 $221,638 $101,005 $119,843 $613 $1,329,406 
Gross charge-offs$(1)$— $— $— $— $— $— $— $(1)
Construction
Pass$31,884 $8,191 $8,628 $56,685 $70,232 $131,383 $26,785 $1,851 $335,639 
Special mentions— — — — — — — — — 
Substandard360 — — — — — — — 360 
Total$32,244 $8,191 $8,628 $56,685 $70,232 $131,383 $26,785 $1,851 $335,999 
Gross charge-offs$— $— $(12)$— $— $— $— $— $(12)
Commercial
Pass$25,214 $11,088 $40,817 $29,142 $29,458 $39,489 $57,982 $874 $234,064 
Special mention116 — — — — — 703 11 830 
Substandard515 — 8 1,257 500 — 257 501 3,038 
Total$25,845 $11,088 $40,825 $30,399 $29,958 $39,489 $58,942 $1,386 $237,932 
Gross charge-offs$(54)$(11)$— $(56)$(69)$— $— $— $(190)
Consumer
Pass$1,315 $10,469 $60,718 $114,639 $61,652 $52,798 $682 $— $302,273 
Special mention— — — — — — — — — 
Substandard2 — 48 860 563 — — — 1,473 
Total$1,317 $10,469 $60,766 $115,499 $62,215 $52,798 $682 $— $303,746 
Gross charge-offs$(1,287)$(12)$(389)$(1,764)$(177)$— $(17)$— $(3,646)
Total
Pass$1,172,110 $405,414 $757,185 $1,030,804 $632,577 $461,566 $229,782 $17,422 $4,706,860 
Special mention9,159 518 2,964 19,746 — — 1,120 11 33,518 
Substandard13,975 — 4,389 2,407 1,948 — 1,291 501 24,511 
Total loans by risk
category		$1,195,244 $405,932 $764,538 $1,052,957 $634,525 $461,566 $232,193 $17,934 $4,764,889 
Total gross
charge-offs		$(1,342)$(23)$(401)$(1,820)$(246)$— $(17)$— $(3,849)
The following table presents the amortized cost in credit card loans based on performing status and gross charge-off as of December 31, 2024 and gross write-offs during the year ended December 31, 2024. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.
Term Loans by Origination YearRevolving
Loans		Revolving
Converted to
Term Loans		Total
($ in thousands)Prior20202021202220232024
December 31, 2024
Credit cards
Performing$— $— $— $— $— $— $6,931 $— $6,931 
Nonperforming— — — — — — 168 — 168 
Total$— $— $— $— $— $— $7,099 $— $7,099 
Gross charge-offs$— $— $— $— $— $— $(584)$— $(584)
Total loans evaluated
by performing status		$— $— $— $— $— $— $7,099 $— $7,099 
Total gross charge-offs$— $— $— $— $— $— $(584)$— $(584)
Total recorded
investment		$1,195,244 $405,932 $764,538 $1,052,957 $634,525 $461,566 $239,292 $17,934 $4,771,988 
The following tables provide information on the aging of the Company’s loan portfolio as of December 31, 2025 and 2024.
($ in thousands)30‑59 Days Past Due60‑89 Days Past Due90 Days Past Due and Still Accruing30-89 Days Past Due and Not Accruing90 Days Past Due and Not AccruingTotal Past DueCurrent Accrual LoansCurrent Nonaccrual LoansTotal
December 31, 2025
Commercial real estate$1,684 $— $— $68 $2,741 $4,493 $2,616,679 $22,824 $2,643,996 
Residential real estate1,663 397 71 1,225 2,583 5,939 1,402,695 6,330 1,414,964 
Construction— 43 79 — 88 210 344,693 — 344,903 
Commercial— 4 — 46 150 200 222,921 2,885 226,006 
Consumer390 690 — 43 448 1,571 263,860 481 265,912 
Credit cards14 19 105 32 — 170 4,335 16 4,521 
Total$3,751 $1,153 $255 $1,414 $6,010 $12,583 $4,855,183 $32,536 $4,900,302 
Percent of total loans0.08 %0.02 %0.01 %0.03 %0.12 %0.26 %99.08 %0.66 %100.00 %
($ in thousands)30‑59 days Past Due60‑89 Days Past Due90 Days Past Due and Still Accruing30-89 Days Past Due and Not Accruing90 Days Past Due and Not AccruingTotal Past DueCurrent Accrual LoansCurrent Nonaccrual LoansTotal
December 31, 2024
Commercial real estate$75 $— $— $2,328 $4,940 $7,343 $2,547,345 $3,118 $2,557,806 
Residential real estate3,828 246 127 655 3,324 8,180 1,317,591 3,635 1,329,406 
Construction30 — — — 360 390 335,609 — 335,999 
Commercial152 2 — — 70 224 236,771 937 237,932 
Consumer4,068 55 — 1,180 251 5,554 298,150 42 303,746 
Credit cards161 190 167 — 146 664 6,413 22 7,099 
Total$8,314 $493 $294 $4,163 $9,091 $22,355 $4,741,879 $7,754 $4,771,988 
Percent of total loans0.17 %0.01 %0.01 %0.09 %0.19 %0.47 %99.37 %0.16 %100.00 %
Summary of Consolidated Allowance for Credit Losses on Financing Receivables
The following tables provide a summary of the activity in the ACL allocated by loan class for the years ended December 31, 2025 and 2024. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses from other loan classes.
($ in thousands)Beginning
Balance		Charge-offsRecoveriesProvisionsEnding
Balance
Year Ended December 31, 2025
Commercial real estate$22,846 $(2,749)$78 $1,212 $21,387 
Residential real estate21,776 (50)196 588 22,510 
Construction2,854 — 1 3,113 5,968 
Commercial3,138 (812)112 567 3,005 
Consumer6,889 (3,133)242 1,769 5,767 
Credit cards407 (535)3 324 199 
Total$57,910 $(7,279)$632 $7,573 $58,836 

($ in thousands)Beginning BalanceCharge-offsRecoveriesProvisionsEnding
Balance
Year Ended December 31, 2024
Commercial real estate$23,015 $— $— $(169)$22,846 
Residential real estate19,909 (1)71,861 21,776 
Construction3,935 (12)13(1,082)2,854 
Commercial2,671 (190)15642 3,138 
Consumer7,601 (3,646)3172,617 6,889 
Credit cards220 (584)9 762 407 
Total$57,351 $(4,433)$361 $4,631 $57,910 
Summary of Financing Receivable, Collateral Dependent Loans
The following tables present the amortized cost basis of collateral-dependent loans by loan portfolio segment.
December 31, 2025
($ in thousands)Real Estate CollateralOther CollateralTotal
Commercial real estate$40,676 $— $40,676 
Residential real estate11,084 — 11,084 
Construction332 — 332 
Commercial— 4,164 4,164 
Consumer— 971 971 
Total$52,092 $5,135 $57,227 
December 31, 2024
($ in thousands)Real Estate CollateralOther CollateralTotal
Commercial real estate$12,835 $— $12,835 
Residential real estate9,023 — 9,023 
Construction360 — 360 
Commercial— 3,039 3,039 
Consumer— 1,483 1,483 
Total$22,218 $4,522 $26,740 
Schedule of Portfolio Loans Modified
The following table presents details of portfolio loans that were modified during the year ended December 31, 2025, by loan category.
($ in thousands)Quantity of Loans ModifiedPrincipal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionTotal% of Total Portfolio Segment
December 31, 2025
Commercial real estate6$— $— $— $— $— $5,166 $5,166 0.20 %
Residential real estate3— — — — — 145 145 0.01 
Commercial2— — — — — 170 170 0.08 
Total11$— $— $— $— $— $5,481 $5,481 0.11 
The following table presents details of portfolio loans that were modified during the year ended December 31, 2024, by loan category.
($ in thousands)Quantity of Loans ModifiedPrincipal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionTotal% of Total Portfolio Segment
December 31, 2024
Commercial real estate1$— $— $1,362 $— $— $— $1,362 0.05 %
Total1$— $— $1,362 $— $— $— $1,362 0.03 
The following table presents details of portfolio loans that were modified during the year ended December 31, 2023, by loan category.
($ in thousands)Quantity of Loans ModifiedPrincipal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionPayment Delay and Term ExtensionTerm Extension and Interest Rate ReductionTotal% of Total Portfolio Segment
December 31, 2023
Commercial real estate2$— $— $253 $— $— $— $253 0.01 %
Commercial1— — 351 — — — 351 0.15 
Total3$— $— $604 $— $— $— $604 0.01 
Summary of Servicing Assets at Fair Value
The following table presents activity in MSRs for the year ended December 31, 2025.
($ in thousands)Year Ended
December 31, 2025
Beginning balance$5,874 
Net additions126 
Amortization expense(528)
Other(330)
Ending balance$5,142 
v3.25.4
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Components of Goodwill and Other Acquired Intangible Assets
The following tables provide information on the significant components of goodwill and other acquired intangible assets as of December 31, 2025 and 2024.
December 31, 2025
($ in thousands)GoodwillCore Deposit Intangible
Gross carrying amount$63,266 $59,151 
Accumulated amortization— (29,429)
Net carrying amount$63,266 $29,722 
December 31, 2024
($ in thousands)GoodwillCore Deposit Intangible
Gross carrying amount$63,266 $59,151 
Accumulated amortization— (20,840)
Net carrying amount$63,266 $38,311 
Summary of Future Amortization Expense for Amortizable Other Intangible Assets
As of December 31, 2025, the estimated future remaining amortization for core deposit intangibles within the years ending December 31 is as follows:
($ in thousands)Amortization Expense
2026$7,398 
20276,208 
20285,060 
20293,980 
20303,096 
Thereafter3,980 
Total amortizing intangible assets$29,722 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Summary of Information about Leases
The following tables present information about the Company’s leases as of and for the periods presented.
($ in thousands)December 31, 2025December 31, 2024
Right-of-use assets$10,523 $11,385 
Lease liabilities$11,027 $11,844 
Weighted-average remaining lease term 8.91 years10.20 years
Weighted-average discount rate3.42 %3.29 %
Remaining lease term – min0.36 years0.01 years
Remaining lease term – max15.68 years16.68 years
Year Ended December 31,
Lease cost ($ in thousands)
202520242023
Operating lease cost$2,009 $1,916 $1,645 
Total lease cost$2,009 $1,916 $1,645 
Cash paid for amounts included in the measurement of lease liabilities$1,954 $1,809 $1,553 
Summary of Operating Lease Liabilities
The following table presents a maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to total operating lease liabilities at December 31, 2025.
Lease payments due ($ in thousands)
December 31, 2025
2026$2,020 
20271,869 
20281,779 
20291,355 
2030997 
Thereafter4,578 
Total undiscounted cash flows12,598 
Less: imputed interest1,571 
Lease liabilities$11,027 
v3.25.4
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Premises and Equipment
The following table provides information on premises and equipment as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024
Land$18,266 $18,266 
Buildings and land improvements71,485 71,721 
Furniture and equipment13,604 11,783 
Premises and equipment, gross103,355 101,770 
Accumulated depreciation(23,187)(19,964)
Premises and equipment, net$80,168 $81,806 
v3.25.4
Deposits (Tables)
 12 Months Ended
Dec. 31, 2025
Deposits [Abstract]  
Summary of Deposits
Deposits consist of the following categories as of the dates indicated:
($ in thousands)December 31, 2025December 31, 2024
Balance% of Total DepositsBalance% of Total Deposits
Noninterest-bearing deposits$1,587,953 28.69 %$1,562,815 28.27 %
Interest-bearing deposits:
Interest-bearing checking852,585 15.41 978,076 17.69 
Money market and savings1,814,928 32.80 1,805,884 32.67 
Time deposits1,267,487 22.90 1,181,561 21.37 
Brokered deposits10,911 0.20 — — 
Total interest-bearing3,945,911 71.31 3,965,521 71.73 
Total deposits$5,533,864 100.00 %$5,528,336 100.00 %
Summary of Contractual Maturities of Certificates of Deposit
The following table provides information on the approximate maturities of total time deposits at December 31, 2025.
($ in thousands)December 31, 2025
Within one year$1,163,823 
Year 279,259 
Year 311,964 
Year 45,115 
Year 57,326 
Thereafter— 
Total$1,267,487 
v3.25.4
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Summary of Long-Term Debt
The following table summarizes certain information of the Company’s borrowings as of and for the years ended December 31, 2025 and 2024.
December 31, 2025December 31, 2024
($ in thousands)AmountRateAmountRate
Average for the year
FHLB advances – variable$602 4.64 %$37,648 5.66 %
FHLB advances – fixed42,466 4.85 32,650 4.87 
At year end
FHLB advances – variable$— — %$— — %
FHLB advances – fixed(1)
— — 50,000 4.79 
____________________________________
(1) Fixed-rate advance with an option of terminating at predetermined dates, without incurring a prepayment fee.
The following table summarizes certain information of the Company’s long-term debt as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024Issue DateStated Maturity DateEarliest Call DateInterest Rate
Subordinated Debentures due September 2030$— $25,000 202020302025
5.375% through September 2025, 3-month SOFR* + 5.265% thereafter
Subordinated Debentures due October 2030— 19,500 202020302025
4.75% through October 2025, 3-month SOFR + 4.58% thereafter
Subordinated Debentures due November 203560,000 — 202520352030
6.25% through November 2030, 3-month SOFR + 2.88% thereafter
Total subordinated debentures60,000 44,500 
Severn Capital Trust I20,619 20,619 20042035
3-month SOFR + 2.26%
Tri-County Capital Trust I7,217 7,217 20042034
90-day SOFR + 2.86%
Tri-County Capital Trust II5,155 5,155 20052035
90-day SOFR + 1.96%
Total trust preferred securities32,991 32,991 
Less: net discount and unamortized issuance costs(3,930)(3,774)
Total long-term debt$89,061 $73,717 
____________________________________
*    Secured Overnight Financing Rate (“SOFR”).
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-Based Compensation
The following table presents stock-based compensation expense included in the consolidated statements of income for each of the periods indicated.
Year Ended December 31,
($ in thousands)202520242023
Stock-based compensation expense$1,890 $1,730 $1,174 
The following table presents the total stock-based compensation expense related to unvested awards that has not yet been recognized as of December 31, 2025 and the weighted-average period over which the expense will be recognized.
At December 31, 2025
($ in thousands)Restricted StockRestricted Stock UnitsPerformance Stock Units
Unrecognized stock-based compensation expense$1 $1,770 $784 
Weighted-average period unrecognized expense is expected to be recognized0.2 years1.5 years1.9 years
Share-Based Payment Arrangement, Activity
The following table summarizes the Company’s restricted stock, restricted stock unit and performance stock unit activity for the year ended December 31, 2025.
Restricted StockRestricted Stock UnitsPerformance Stock Units
Number of SharesWeighted-Average Grant Date Fair Value per ShareNumber of SharesWeighted-Average Grant Date Fair Value per ShareNumber of SharesWeighted-Average Grant Date Fair Value per Share
Outstanding at December 31, 202451,610 $11.42 135,104 $11.46 43,651 $11.32 
Granted4,480 15.62 133,866 15.57 59,179 15.15 
Vested(51,610)11.39 (86,320)11.57 — — 
Forfeited(1,305)15.62 (6,244)13.59 (8,784)13.30 
Outstanding at December 31, 20253,175 16.01 176,406 14.45 94,046 13.55 
v3.25.4
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Instruments
The following table provides information pertaining to the carrying amounts of the Company’s derivative financial instruments as of December 31, 2025 and 2024.
December 31, 2025December 31, 2024
($ in thousands)Notional AmountEstimated Fair ValueNotional AmountEstimated Fair Value
Asset – IRLCs
$6,172 $91 $7,527 $113 
Asset – TBA securities
9,750 11 22,100 164 
Liability – IRLCs
193 1 — — 
Liability – TBA securities
20,150 59 7,550 23 
v3.25.4
Deferred Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Deferred Compensation Arrangements [Abstract]  
Summary of Deferred Compensation Arrangement
The following table provides information on employer contributions and participant deferrals to the Deferred Compensation Plan and the related deferred compensation liability for the periods presented.
Year Ended December 31,
($ in thousands)202520242023
Employer contributions$218 $140 $52 
Participant elective deferrals 287 276 273 
Deferred compensation liability1,812 1,506 1,576 
Summary of Deferred Compensation Arrangement in Other Assets and Other Liabilities The unfunded SERP liability and cash surrender value were included on the consolidated balance sheets in other liabilities and other assets, respectively.
($ in thousands)December 31, 2025December 31, 2024December 31, 2023
Cash surrender value$102,150 $100,517 $98,140 
Deferred compensation liability – SERP13,576 13,349 12,869 
SERP expense1,166 1,050 1,405 
The following table includes information on the deferred compensation liability and cash surrender value as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024
Deferred compensation liability$200 $331 
Cash surrender value1,547 2,257 
v3.25.4
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Summary of Accumulated Other Comprehensive Income (Loss) The following table provides information on the changes in the component of accumulated other comprehensive income (loss) for the years ended December 31, 2025, 2024 and 2023.
Year Ended
($ in thousands)December 31, 2025December 31, 2024December 31, 2023
Beginning of period$(7,545)$(7,494)$(9,021)
Other comprehensive income (loss), net of tax2,952 (51)1,527 
End of period$(4,593)$(7,545)$(7,494)
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of Components of Income Tax Expense
The following table provides information on the components of income tax expense from continuing operations for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands)202520242023
Current income tax expense:
Federal$13,870 $4,264 $172 
State4,357 1,681 63 
Total current income tax expense18,227 5,945 235 
Deferred income tax expense:
Federal536 6,570 1,692 
State386 2,300 1,029 
Total deferred income tax expense922 8,870 2,721 
Total income tax expense $19,149 $14,815 $2,956 
Summary of Effective Income Tax Rate Reconciliation
The following table provides a reconciliation of tax computed at the statutory federal tax rate and the recorded tax expense (in dollars and percentages) for the year ended December 31, 2025, under the provisions of ASU No. 2023-09.
Year Ended December 31, 2025
($ in thousands)AmountPercent
Tax at federal statutory rate$16,518 21.0 %
State and local income taxes, net of federal tax benefits(1)
3,746 4.7 
Tax credits
Low-income housing(2)
(21)— 
Nontaxable or nondeductible items
Appreciation in cash surrender value of life insurance(821)(1.1)
Other(273)(0.3)
Actual income tax$19,149 24.4 %
_________________________________
(1)State taxes in Maryland comprised the majority of the tax effect in this category.
(2)Includes proportional amortization of low income tax credit and other tax benefits.

The following table provides a reconciliation of tax computed at the statutory federal tax rate and the recorded tax expense (in percentages) for the years ended December 31, 2024 and 2023, prior to the adoption of ASU No. 2023-09.
Year Ended December 31,
20242023
Tax at federal statutory rate21.0 %21.0 %
Tax effect of:
Tax-exempt income(1.4)(3.6)
State and local income taxes, net of federal tax benefits5.4 6.1 
Bargain purchase gain— (13.1)
Nondeductible compensation costs0.1 3.9 
Nondeductible merger-related expenses— 2.6 
Other0.1 3.9 
Actual income tax25.2 %20.8 %
Summary of Deferred Tax Assets and Liabilities
The following table provides information on significant components of the Company’s deferred tax assets and liabilities attributable to continuing operations as of December 31, 2025 and 2024.
December 31,
($ in thousands)20252024
Deferred tax assets:  
Allowance for credit losses$15,035 $14,888 
Valuation adjustments on OREO and repossessed assets217 — 
Nonaccrual loan interest 691 578 
Lease liabilities2,813 3,035 
Deferred compensation4,084 4,078 
State net operating losses2,834 2,066 
Deferred loan fees2,204 2,078 
Acquisition fair value adjustments20,628 24,988 
Unrealized losses on available for sale securities1,734 2,844 
Other1,432 1,233 
Total deferred tax assets$51,672 $55,788 
Deferred tax liabilities:
Depreciation$4,042 $4,115 
Right-of-use assets2,685 2,918 
Mortgage servicing rights1,312 1,505 
Acquisition fair value adjustments826 1,651 
Intangibles9,299 11,223 
Other886 575 
Total deferred tax liabilities19,050 21,987 
Less: valuation allowance(2,797)(1,944)
Net deferred tax assets$29,825 $31,857 
Schedule of Cash Flow, Supplemental Disclosures
During the year ended December 31, 2025, the Company made payments to tax authorities for income taxes as set forth in the table below.
($ in thousands)2025
Federal$13,050 
State and local:
Maryland2,020 
Total taxes paid$15,070 
v3.25.4
Regulatory Capital Requirements (Tables)
 12 Months Ended
Dec. 31, 2025
Regulatory Capital Requirements under Banking Regulations [Abstract]  
Summary of Compliance with Regulatory Capital Requirements under Banking Regulations
The following table presents the capital amounts and ratios for the Company and the Bank as of December 31, 2025 and 2024.
December 31, 2025
AmountRegulatory Minimum Ratio + Capital Conservation Buffer
To Be Well-Capitalized Under Prompt Corrective Action Regulation(1)
($ in thousands)
Company Amounts
Common Equity Tier 1 Capital$510,729 $339,680 N/A
Tier 1 Capital540,897 412,469 N/A
Total Capital660,451 509,520 N/A
Risk-Weighted Assets4,852,573 245,172 N/A
Company Ratios
Common Equity Tier 1 Capital to Risk-Weighted Assets (“RWA”)10.52 %7.00 %N/A
Tier 1 Capital to RWA11.15 8.50 N/A
Total Capital to RWA13.61 10.50 N/A
Tier 1 Capital to AA (Leverage)(2)
8.82 4.00 N/A
Bank Amounts
Common Equity Tier 1 Capital$569,183 $339,125 $314,902 
Tier 1 Capital569,183 411,794 387,571 
Total Capital629,746 508,687 484,464 
Risk-Weighted Assets4,844,639 244,911 306,139 
Bank Ratios
Common Equity Tier 1 Capital to RWA11.75 %7.00 %6.50 %
Tier 1 Capital to RWA11.75 8.50 8.00 
Total Capital to RWA13.00 10.50 10.00 
Tier 1 Capital to AA (Leverage)(2)
9.30 4.00 5.00 
____________________________________
(1)Applies to the Bank only.
(2)Tier 1 Capital to Average Assets (Leverage) has no capital conservation buffer defined. The PCA well-capitalized threshold is defined as 5.00%.
December 31, 2024
AmountRegulatory Minimum Ratio + Capital Conservation Buffer
To Be Well-Capitalized Under Prompt Corrective Action Regulation(1)
($ in thousands)
Company Amounts
Common Equity Tier 1 Capital$458,258 $339,679 N/A
Tier 1 Capital488,105 412,468 N/A
Total Capital591,228 509,519 N/A
Risk-Weighted Assets4,852,564 243,350 N/A
Company Ratios
Common Equity Tier 1 Capital to RWA9.44 %7.00 %N/A
Tier 1 Capital to RWA10.06 8.50 N/A
Total Capital to RWA12.18 10.50 N/A
Tier 1 Capital to AA (Leverage)(2)
8.02 4.00 N/A
Bank Amounts
Common Equity Tier 1 Capital$521,453 $339,633 $315,374 
Tier 1 Capital521,453 412,412 388,152 
Total Capital580,706 509,450 485,190 
Risk-Weighted Assets4,851,903 243,102 303,877 
Bank Ratios
Common Equity Tier 1 Capital to RWA10.75 %7.00 %6.50 %
Tier 1 Capital to RWA10.75 8.50 8.00 
Total Capital to RWA11.97 10.50 10.00 
Tier 1 Capital to AA (Leverage)(2)
8.58 4.00 5.00 
_________________________________
(1)Applies to the Bank only.
(2)Tier 1 Capital to Average Assets (Leverage) has no capital conservation buffer defined. The PCA well-capitalized threshold is defined as 5.00%.
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Summary of Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRange
December 31, 2025
IRLCs – net asset$90 Market ApproachRange of pull through rate
81% - 100%
Average pull through rate98%
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRange
December 31, 2024
IRLCs – net asset$113 Market ApproachRange of pull through rate
78% - 100%
Average pull through rate89%
Summary of Derivative Asset at Fair Value
The following table presents activity in the IRLCs – net asset for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands)202520242023
Beginning balance$113 $110 $28 
Valuation adjustment(23)3 82 
Ending balance$90 $113 $110 
Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis
The following tables present the recorded amount of assets measured at fair value on a recurring basis as of December 31, 2025 and 2024. No assets were transferred from one hierarchy level to another during the years ended December 31, 2025 or 2024.
($ in thousands)Fair ValueQuoted Prices
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2025
Assets:
Available for sale securities:
U.S. government agency securities$20,616 $— $20,616 $— 
Mortgage-backed securities195,027 — 195,027 — 
Other debt securities4,715 — 4,715 — 
Total available for sale securities220,358 — 220,358 — 
Equity securities6,186 — 6,186 — 
TBA forward trades11 — 11 — 
Loans held for sale32,540 — 32,540 — 
IRLCs91 — — 91 
Total assets at fair value$259,186 $— $259,095 $91 
Liabilities:
IRLCs$1 $— $— $1 
TBA forward trades59 — 59 — 
Total liabilities at fair value$60 $— $59 $1 
($ in thousands)Fair ValueQuoted Prices
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2024
Assets:
Available for sale securities:
U.S. government agency securities$20,202 $— $20,202 $— 
Mortgage-backed securities122,384 — 122,384 — 
Other debt securities6,626 — 6,626 — 
Total available for sale securities149,212 — 149,212 — 
Equity securities5,814 — 5,814 — 
TBA forward trades164 — 164 — 
Loans held for sale19,606 — 19,606 — 
IRLCs113 — — 113 
Total assets at fair value$174,909 $— $174,796 $113 
Liabilities:
TBA forward trades$23 $— $23 $— 
Total liabilities at fair value$23 $— $23 $— 
Summary of Fair Value of Assets Measured on Nonrecurring Basis
The following tables set forth the Company’s assets subject to fair value adjustments (impairment) on a non-recurring basis as of December 31, 2025 and 2024 that are valued at lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Quantitative Information about Level 3 Fair Value Measurements
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRangeWeighted-Average
December 31, 2025
Non-recurring measurements:
Individually-evaluated collateral dependent loans:
Commercial real estate$19,696 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
60% - 71%
10%
68%
10%
Residential real estate520 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
1%
10%
Commercial— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
0%
10%
Consumer— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
0%
10%
0%
10%
Other real estate owned113 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
Repossessed assets2,879 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
60%
Quantitative Information about Level 3 Fair Value Measurements
($ in thousands)Fair ValueValuation TechniqueUnobservable InputRangeWeighted-Average
December 31, 2024
Nonrecurring measurements:
Individually-evaluated collateral dependent loans:
Commercial real estate$2,220 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
62%
10%
38%
10%
Residential real estate817 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
55% - 100%
10%
17%
10%
Commercial— 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
14% - 100%
10%
0%
10%
Consumer624 
Appraisal of collateral(1)
Appraisal adjustment(2)
Liquidation expense(2)
80% - 86%
10%
15%
10%
Other real estate owned179 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
Repossessed assets3,315 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
39%
Assets held for sale900 
Appraisal of collateral(1)
Appraisal adjustment(2)
N/A
0%
_________________________________
(1)Unobservable inputs were weighted by the relative fair value of the instruments. No range is presented only when one instrument was available.
(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
v3.25.4
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments
The following tables present the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2025 and 2024. Fair values for December 31, 2025 and 2024 were estimated using an exit price notion.
December 31, 2025Carrying AmountFair ValueFair Value Measurements
($ in thousands)Level 1Level 2Level 3
Assets
Cash and cash equivalents$355,566 $355,566 $355,566 $— $— 
Available for sale securities220,358 220,358 — 220,358 — 
Held to maturity securities414,827 378,116 — 378,116 — 
Equity securities 6,186 6,186 — 6,186 — 
Restricted securities17,989 N/A— N/A— 
Loans held for sale32,540 32,540 — 32,540 — 
TBA securities11 11 — 11 — 
Loans held for investment, at amortized cost, net4,841,466 4,767,143 — — 4,767,143 
Mortgage servicing rights5,142 5,861 — 5,861 — 
Accrued interest receivable18,551 18,551 — 18,551 — 
IRLCs91 91 — — 91 
Liabilities
Deposits:
Noninterest-bearing$1,587,953 $1,587,953 $— $1,587,953 $— 
Interest-bearing checking852,585 852,585 — 852,585 — 
Money market and savings1,814,928 1,814,928 — 1,814,928 — 
Time deposits1,267,487 1,265,740 — 1,265,740 — 
Brokered deposits10,911 10,923 — 10,923 — 
FHLB advances— — — — — 
TRUPS30,168 29,586 — 29,586 — 
Subordinated debt58,893 58,064 — 58,064 — 
TBA Securities59 59 — 59 — 
Accrued interest payable2,977 2,977 — 2,977 — 
IRLCs1 1 — — 1 
December 31, 2024Carrying AmountFair ValueFair Value Measurements
($ in thousands)Level 1Level 2Level 3
Assets
Cash and cash equivalents$459,851 $459,851 $459,851 $— $— 
Available for sale securities149,212 149,212 — 149,212 — 
Held to maturity securities481,077 424,734 — 424,734 — 
Equity securities5,814 5,814 — 5,814 — 
Restricted securities20,253 20,253 — 20,253 — 
Loans held for sale19,606 19,606 — 19,606 — 
TBA securities164 164 — 164 — 
Loans held for investment, at amortized cost, net4,714,078 4,561,449 — — 4,561,449 
Mortgage servicing rights5,874 5,874 — 5,874 — 
Accrued interest receivable19,570 19,570 — 19,570 — 
IRLCs113 113 — — 113 
Liabilities
Deposits:
Noninterest-bearing$1,562,815 $1,562,815 $— $1,562,815 $— 
Interest bearing checking978,076 978,076 — 978,076 — 
Money market and savings1,805,884 1,805,884 — 1,805,884 — 
Time deposits1,181,561 1,179,716 — 1,179,716 — 
Brokered deposits— — — — — 
FHLB advances50,000 50,201 — 50,201 — 
TRUPS29,847 27,952 — 27,952 — 
Subordinated debt43,870 43,669 — 43,669 — 
TBA securities23 23 — 23 — 
Accrued interest payable3,398 3,398 — 3,398 — 
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Summary of Commitments Outstanding
The following table provides information on commitments outstanding as of December 31, 2025 and 2024.
($ in thousands)December 31, 2025December 31, 2024
Commitments to extend credit
Fixed$209,737 $261,794 
Variable503,713 497,686 
Total commitments to extend credit$713,450 $759,480 
Letters of credit
Fixed$6,495 $8,980 
Variable17,830 18,981 
Total letters of credit$24,325 $27,961 
Total commitments outstanding$737,775 $787,441 
v3.25.4
Earnings per Common Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Summary of Earnings Per Common Share, Basic and Diluted The following table provides information relating to the calculation of earnings per common share for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands, except per share data)202520242023
Net income$59,506 $43,889 $11,228 
Average number of common shares outstanding33,392,81733,267,32826,572,217
Dilutive effect of common stock equivalents14,33817,8281,893
Average number of common shares used to calculate diluted EPS33,407,15533,285,15626,574,110
Anti-dilutive shares———
Basic net income per common share$1.78 $1.32 $0.42 
Diluted net income per common share$1.78 $1.32 $0.42 
v3.25.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Summary of Noninterest Income, Segregated by Revenue Streams In-Scope and Out-of-Scope of Topic 606
The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2025, 2024 and 2023.
Year Ended December 31,
($ in thousands)202520242023
Noninterest income
In-scope of Topic 606:
Service charges on deposit accounts$6,295 $6,149 $5,501 
Trust and investment fee income3,705 3,367 3,608 
Interchange income7,085 6,741 5,714 
Other noninterest income3,768 4,653 3,512 
Noninterest income (in-scope of Topic 606)20,853 20,910 18,335 
Noninterest income (out-of-scope of Topic 606)11,835 10,237 14,824 
Total noninterest income$32,688 $31,147 $33,159 
v3.25.4
Parent Company Financial Information (Tables)
 12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
Summary of Condensed Balance Sheet, Parent Only
The following tables provide condensed financial information for Shore Bancshares, Inc. (Parent Company only).
SHORE BANCSHARES, INC. (PARENT COMPANY ONLY)
CONDENSED BALANCE SHEETS
($ in thousands)December 31, 2025December 31, 2024
ASSETS
Cash$21,654 $5,257 
Investment in subsidiaries648,599 605,286 
Other assets11,885 9,289 
TOTAL ASSETS$682,138 $619,832 
LIABILITIES
Accrued interest payable$839 $1,027 
Deferred tax liability140 251 
Other liabilities2,225 3,771 
Long-term debt89,061 73,717 
TOTAL LIABILITIES92,265 78,766 
STOCKHOLDERS’ EQUITY
Common stock334 333 
Additional paid-in capital360,554 358,112 
Retained earnings233,578 190,166 
Accumulated other comprehensive loss(4,593)(7,545)
TOTAL STOCKHOLDERS’ EQUITY589,873 541,066 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$682,138 $619,832 
Summary of Condensed Statement of Operations, Parent Only
Year Ended December 31,
($ in thousands)202520242023
INCOME
Dividends from subsidiaries$26,000 $17,000 $22,000 
Company owned life insurance income184 206 141 
Bargain purchase gain— — 8,816 
TOTAL INCOME26,184 17,206 30,957 
EXPENSES
Interest expense6,359 5,768 4,454 
Salaries and employee benefits408 598 358 
Legal and professional fees, including merger expenses1,929 1,636 5,164 
Other operating expenses890 1,032 776 
TOTAL EXPENSES9,586 9,034 10,752 
Income before income tax benefit and equity (deficit) in undistributed net income of subsidiaries16,598 8,172 20,205 
Income tax benefit(2,047)(1,678)(1,557)
Income before equity (deficit) in undistributed net income of subsidiaries18,645 9,850 21,762 
Equity (deficit) in undistributed net income of subsidiaries40,861 34,039 (10,534)
NET INCOME$59,506 $43,889 $11,228 
Summary of Condensed Cash Flow, Parent Only
Year Ended December 31,
($ in thousands)202520242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$59,506 $43,889 $11,228 
Adjustments to reconcile net income to cash provided by operating activities:
Equity in undistributed net income of subsidiaries(40,861)(34,039)10,534 
Bargain purchase gain— — (8,816)
Amortization of debt issuance costs119 122 122 
Stock-based compensation expense1,890 1,730 1,174 
Company owned life insurance income(183)(208)(141)
Acquisition accounting adjustments865 926 557 
Net increase in other assets(2,104)(957)(1,267)
Net (decrease) increase in other liabilities(1,374)2,284 (682)
Net cash provided by operating activities17,858 13,747 12,709 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of company owned life insurance(309)(198)(249)
Return of subsidiary investment500 — — 
Cash acquired in the acquisition of TCFC, net of cash paid— — 88 
Net cash used in investing activities191 (198)(161)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of subordinated debt, net of issuance costs58,860 — — 
Redemption of subordinated debt(44,500)— — 
Common stock dividends paid(16,094)(16,013)(12,733)
Issuance of common stock82 376 385 
Net cash used in financing activities(1,652)(15,637)(12,348)
Net increase (decrease) in cash and cash equivalents16,397 (2,088)200 
Cash and cash equivalents at beginning of year5,257 7,345 7,145 
Cash and cash equivalents at end of year$21,654 $5,257 $7,345 
v3.25.4
Summary of Significant Accounting Policies (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Significant Accounting Policies [Line Items]      
Available for sale debt securities and has included such accrued interest $ 2,100,000 $ 2,500,000  
Restricted securities 17,989,000 20,253,000  
Held to maturity, amortized cost 414,926,000 481,280,000  
Held to maturity securities, fair value 378,116,000 424,734,000  
Amount, after allowance for credit loss, of accrued interest $ 16,300,000 $ 16,700,000  
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Accrued interest receivable Accrued interest receivable  
Transfer from loans held for sale to loans held for investment $ 649,000 $ 0 $ 0
Provision for credit losses associated with its unfunded commitments $ 906,000 104,000 436,000
Number of reportable segments | segment 1    
Number of operating segments | segment 1    
Impairment charges $ 0 0  
Advertising expenses 1,300,000 1,300,000 1,100,000
Reclassification of (gains) recognized in net income 0 0 $ 0
Collateral Pledged      
Significant Accounting Policies [Line Items]      
Restricted securities 69,369,000 67,926,000  
Held to maturity, amortized cost 218,556,000 197,474,000  
Held to maturity securities, fair value $ 197,146,000 $ 173,248,000  
Land improvements      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 15 years    
Minimum | Core Deposit Intangible      
Significant Accounting Policies [Line Items]      
Finite-Lived intangible asset, useful life 7 years    
Minimum | Furniture and equipment      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 3 years    
Minimum | Computer hardware and data handling equipment      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 3 years    
Minimum | Buildings and building improvements      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 10 years    
Maximum | Core Deposit Intangible      
Significant Accounting Policies [Line Items]      
Finite-Lived intangible asset, useful life 10 years    
Maximum | Furniture and equipment      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 10 years    
Maximum | Computer hardware and data handling equipment      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 5 years    
Maximum | Buildings and building improvements      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 40 years    
v3.25.4
Investment Securities - Amortized Cost and Estimated Fair Values of Investment Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Available for sale securities:    
Amortized Cost $ 226,677 $ 159,593
Gross Unrealized Gains 779 557
Gross Unrealized Losses 7,098 10,938
Available for sale securities 220,358 149,212
Available for sale securities sold 0 0
U.S. Treasury and government agency securities    
Available for sale securities:    
Amortized Cost 22,303 22,984
Gross Unrealized Gains 2 4
Gross Unrealized Losses 1,689 2,786
Available for sale securities 20,616 20,202
Mortgage-backed securities    
Available for sale securities:    
Amortized Cost 200,105 130,439
Gross Unrealized Gains 331 84
Gross Unrealized Losses 5,409 8,139
Available for sale securities 195,027 122,384
Other debt securities    
Available for sale securities:    
Amortized Cost 4,269 6,170
Gross Unrealized Gains 446 469
Gross Unrealized Losses 0 13
Available for sale securities $ 4,715 $ 6,626
v3.25.4
Investment Securities - Amortized Cost and Estimated Fair Values of Investment Held to Maturity Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Held to Maturity        
Amortized Cost $ 414,926 $ 481,280    
Gross Unrealized Gains 290 19    
Gross Unrealized Losses 37,100 56,565    
Estimated Fair Value 378,116 424,734    
Allowance for Credit Losses 99 203 $ 94 $ 0
U.S. Treasury and government agency securities        
Held to Maturity        
Amortized Cost 104,836 132,560    
Gross Unrealized Gains 2 0    
Gross Unrealized Losses 4,513 8,555    
Estimated Fair Value 100,325 124,005    
Allowance for Credit Losses 0 0    
Mortgage-backed securities        
Held to Maturity        
Amortized Cost 303,129 336,755    
Gross Unrealized Gains 255 0    
Gross Unrealized Losses 32,167 47,234    
Estimated Fair Value 271,217 289,521    
Allowance for Credit Losses 0 0    
Other debt securities        
Held to Maturity        
Amortized Cost 6,961 11,965    
Gross Unrealized Gains 33 19    
Gross Unrealized Losses 420 776    
Estimated Fair Value 6,574 11,208    
Allowance for Credit Losses $ 99 $ 203    
v3.25.4
Investment Securities - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
security
Dec. 31, 2024
USD ($)
security
Dec. 31, 2023
USD ($)
Debt Securities, Available-for-Sale [Line Items]      
Equity securities $ 6,186,000 $ 5,814,000  
Fair value adjustment through earnings 372,000 111,000 $ 133,000
Provision for (reversal of) credit losses, other debt securities $ (104,000) $ 109,000 $ 94,000
Available for sale securities, number of positions | security 122 111  
Unrealized loss $ 7,098,000 $ 10,938,000  
Debt securities, available-for-sale, impairment loss 0    
Securities past due or on nonaccrual $ 0 $ 0  
Held to maturity securities, number of positions | security 169 187  
Net unrealized losses $ 6,300,000 $ 10,400,000  
Restricted securities 17,989,000 20,253,000  
Held-to-maturity, amortized cost 414,926,000 481,280,000  
Collateral Pledged      
Debt Securities, Available-for-Sale [Line Items]      
Restricted securities 69,369,000 67,926,000  
Held-to-maturity, amortized cost $ 218,556,000 $ 197,474,000  
v3.25.4
Investment Securities - Activity in the ACL on Held-to Maturity Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Activity in the ACL on held-to maturity securities      
Balance, beginning of period $ 203 $ 94 $ 0
Provision for (reversal of) credit losses, other debt securities (104) 109 94
Balance, end of period $ 99 $ 203 $ 94
v3.25.4
Investment Securities - Gross Unrealized Losses and Fair Value by Length of Continuous Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Available for sale securities:    
Fair value, less than 12 months $ 102,954 $ 57,120
Unrealized losses, less than 12 months 531 710
Fair value, more than 12 months 65,683 68,192
Unrealized losses, more than 12 months 6,567 10,228
Fair Value 168,637 125,312
Unrealized Losses 7,098 10,938
U.S. Treasury and government agency securities    
Available for sale securities:    
Fair value, less than 12 months 0 207
Unrealized losses, less than 12 months 0 0
Fair value, more than 12 months 18,027 17,422
Unrealized losses, more than 12 months 1,689 2,786
Fair Value 18,027 17,629
Unrealized Losses 1,689 2,786
Mortgage-backed securities    
Available for sale securities:    
Fair value, less than 12 months 102,954 56,913
Unrealized losses, less than 12 months 531 710
Fair value, more than 12 months 47,656 48,782
Unrealized losses, more than 12 months 4,878 7,429
Fair Value 150,610 105,695
Unrealized Losses 5,409 8,139
Other debt securities    
Available for sale securities:    
Fair value, less than 12 months 0 0
Unrealized losses, less than 12 months 0 0
Fair value, more than 12 months 0 1,988
Unrealized losses, more than 12 months 0 13
Fair Value 0 1,988
Unrealized Losses $ 0 $ 13
v3.25.4
Investment Securities - Amortized Cost and Estimated Fair Value by Maturity Date (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Amortized Cost    
Due in one year or less $ 2,461  
Due after one year through five years 21,330  
Due after five years through ten years 2,529  
Due after ten years 252  
Amortized Cost 26,572  
Amortized Cost 226,677 $ 159,593
Fair Value    
Due in one year or less 2,463  
Due after one year through five years 19,808  
Due after five years through ten years 2,823  
Due after ten years 237  
Fair Value 25,331  
Available for Sale 220,358 149,212
Amortized Cost    
Due in one year or less 32,564  
Due after one year through five years 63,596  
Due after five years through ten years 5,488  
Due after ten years 10,149  
Amortized Cost 111,797  
Amortized Cost 414,926 481,280
Fair Value    
Due in one year or less 32,391  
Due after one year through five years 60,829  
Due after five years through ten years 5,105  
Due after ten years 8,574  
Fair Value 106,899  
Estimated Fair Value 378,116 424,734
Mortgage-backed securities    
Amortized Cost    
Mortgage-backed securities 200,105  
Amortized Cost 200,105 130,439
Fair Value    
Mortgage-backed securities 195,027  
Available for Sale 195,027 122,384
Amortized Cost    
Mortgage-backed securities 303,129  
Amortized Cost 303,129 336,755
Fair Value    
Mortgage-backed securities 271,217  
Estimated Fair Value $ 271,217 $ 289,521
v3.25.4
Investment Securities - Amortized Cost and Estimated Fair Values of Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Pledged available for sale securities    
Amortized Cost $ 226,677 $ 159,593
Restricted securities 17,989 20,253
Pledged held to maturity securities    
Amortized Cost 414,926 481,280
Estimated Fair Value 378,116 424,734
Collateral Pledged    
Pledged available for sale securities    
Amortized Cost 75,123 76,280
Restricted securities 69,369 67,926
Pledged held to maturity securities    
Amortized Cost 218,556 197,474
Estimated Fair Value $ 197,146 $ 173,248
v3.25.4
Loans and Allowance for Credit Losses - Loans by Class of Loan Portfolio (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Financing Receivable, Past Due [Line Items]      
Loans held for investment $ 4,900,302 $ 4,771,988  
% of Total Loans 1.0000 1.0000  
Less: allowance for credit losses $ (58,836) $ (57,910) $ (57,351)
Loans, net 4,841,466 4,714,078  
Commercial real estate      
Financing Receivable, Past Due [Line Items]      
Loans held for investment $ 2,643,996 $ 2,557,806  
% of Total Loans 0.5395 0.5360  
Less: allowance for credit losses $ (21,387) $ (22,846) (23,015)
Residential real estate      
Financing Receivable, Past Due [Line Items]      
Loans held for investment $ 1,414,964 $ 1,329,406  
% of Total Loans 0.2888 0.2785  
Less: allowance for credit losses $ (22,510) $ (21,776) (19,909)
Construction      
Financing Receivable, Past Due [Line Items]      
Loans held for investment $ 344,903 $ 335,999  
% of Total Loans 0.0704 0.0704  
Less: allowance for credit losses $ (5,968) $ (2,854) (3,935)
Commercial      
Financing Receivable, Past Due [Line Items]      
Loans held for investment $ 226,006 $ 237,932  
% of Total Loans 0.0461 0.0499  
Less: allowance for credit losses $ (3,005) $ (3,138) (2,671)
Consumer      
Financing Receivable, Past Due [Line Items]      
Loans held for investment $ 265,912 $ 303,746  
% of Total Loans 0.0543 0.0637  
Less: allowance for credit losses $ (5,767) $ (6,889) (7,601)
Credit cards      
Financing Receivable, Past Due [Line Items]      
Loans held for investment $ 4,521 $ 7,099  
% of Total Loans 0.0009 0.0015  
Less: allowance for credit losses $ (199) $ (407) $ (220)
v3.25.4
Loans and Allowance for Credit Losses - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
credit_card
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]      
Deferred costs, net of fees $ 3,100 $ 3,200  
Loans, net 4,841,466 4,714,078  
Financing receivable modified during preceding 12 months 5,300 1,400  
Other real estate owned, net 113 179  
Repossessed assets 2,900 3,300  
MSR impairment 0 0 $ 0
Net servicing income $ 378 $ 898 $ 866
Minimum | Discount rate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
MSR, measurement input 0.090 0.090  
Minimum | Prepayment speed      
Financing Receivable, Allowance for Credit Loss [Line Items]      
MSR, measurement input 0.0611    
Maximum | Discount rate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
MSR, measurement input 0.100 0.110  
Maximum | Prepayment speed      
Financing Receivable, Allowance for Credit Loss [Line Items]      
MSR, measurement input 0.0956    
Weighted Average | Prepayment speed      
Financing Receivable, Allowance for Credit Loss [Line Items]      
MSR, measurement input 0.0020    
Credit cards      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Number of loans downgraded | credit_card 2    
Commercial real estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Consumer mortgage loans $ 95 $ 554  
Consumer      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Consumer mortgage loans 124 124  
Federal National Mortgage Association (FNMA)      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans, net 343,800    
Federal Home Loan Mortgage Corporation (FHLMC)      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans, net 105,600    
Severn Bancorp, Inc. And TCFC      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Business combination, loan acquired 1,490,000 1,690,000  
Loans acquired, net of related discount $ 78,200 $ 92,000  
v3.25.4
Loans and Allowance for Credit Losses - Nonaccrual Loans by Loan Class (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Nonaccrual loans:    
Nonaccrual With No Allowance For Credit Loss $ 19,012 $ 16,512
Nonaccrual With An Allowance For Credit Loss 20,948 4,496
Total Nonaccrual Loans 39,960 21,008
Interest income, nonaccrual with no allowance for credit loss 285 274
Interest income, nonaccrual with an allowance for credit loss 363 65
Interest income, total non-accruals 648 339
Nonaccrual Delinquent Loans 7,424 13,254
Nonaccrual Current Loans 32,536 7,754
Commercial real estate    
Nonaccrual loans:    
Nonaccrual With No Allowance For Credit Loss 6,135 8,192
Nonaccrual With An Allowance For Credit Loss 19,498 2,194
Total Nonaccrual Loans 25,633 10,386
Nonaccrual Delinquent Loans 2,809 7,268
Nonaccrual Current Loans 22,824 3,118
Residential real estate    
Nonaccrual loans:    
Nonaccrual With No Allowance For Credit Loss 9,594 6,741
Nonaccrual With An Allowance For Credit Loss 544 873
Total Nonaccrual Loans 10,138 7,614
Nonaccrual Delinquent Loans 3,808 3,979
Nonaccrual Current Loans 6,330 3,635
Construction    
Nonaccrual loans:    
Nonaccrual With No Allowance For Credit Loss 88 360
Nonaccrual With An Allowance For Credit Loss 0 0
Total Nonaccrual Loans 88 360
Nonaccrual Delinquent Loans 88 360
Nonaccrual Current Loans 0 0
Commercial    
Nonaccrual loans:    
Nonaccrual With No Allowance For Credit Loss 2,297 458
Nonaccrual With An Allowance For Credit Loss 784 549
Total Nonaccrual Loans 3,081 1,007
Nonaccrual Delinquent Loans 196 70
Nonaccrual Current Loans 2,885 937
Consumer    
Nonaccrual loans:    
Nonaccrual With No Allowance For Credit Loss 898 761
Nonaccrual With An Allowance For Credit Loss 74 712
Total Nonaccrual Loans 972 1,473
Nonaccrual Delinquent Loans 491 1,431
Nonaccrual Current Loans 481 42
Credit cards    
Nonaccrual loans:    
Nonaccrual With No Allowance For Credit Loss 0 0
Nonaccrual With An Allowance For Credit Loss 48 168
Total Nonaccrual Loans 48 168
Nonaccrual Delinquent Loans 32 146
Nonaccrual Current Loans $ 16 $ 22
v3.25.4
Loans and Allowance for Credit Losses - Loan Risk Ratings (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Credit quality categories    
Prior $ 1,362,664 $ 1,195,244
Year One 663,013 405,932
Year Two 987,622 764,538
Year Three 543,191 1,052,957
Year Four 457,635 634,525
Year Five 616,747 461,566
Revolving loans 238,924 239,292
Revolving converted to term loans 30,506 17,934
Total 4,900,302 4,771,988
Current period gross charge-offs    
Total gross charge-offs (7,279) (4,433)
Loans Evaluated By Performing Status    
Credit quality categories    
Prior 0 0
Year One 0 0
Year Two 0 0
Year Three 0 0
Year Four 0 0
Year Five 0 0
Revolving loans 4,521 7,099
Revolving converted to term loans 0 0
Total 4,521 7,099
Current period gross charge-offs    
Gross charge-offs, Prior (636) 0
Gross charge-offs, Year One (2,739) 0
Gross charge-offs, Year Two (1,595) 0
Gross charge-offs, Year Three (975) 0
Gross charge-offs, Year Four (324) 0
Gross charge-offs, Year Five 0 0
Revolving loans (979) (584)
Revolving converted to term loans (31) 0
Total gross charge-offs (7,279) (584)
Total loans by risk category    
Credit quality categories    
Prior 1,362,664 1,195,244
Year One 663,013 405,932
Year Two 987,622 764,538
Year Three 543,191 1,052,957
Year Four 457,635 634,525
Year Five 616,747 461,566
Revolving loans 234,403 232,193
Revolving converted to term loans 30,506 17,934
Total 4,895,781 4,764,889
Current period gross charge-offs    
Gross charge-offs, Prior (636) (1,342)
Gross charge-offs, Year One (2,739) (23)
Gross charge-offs, Year Two (1,595) (401)
Gross charge-offs, Year Three (975) (1,820)
Gross charge-offs, Year Four (324) (246)
Gross charge-offs, Year Five 0 0
Revolving loans (444) (17)
Revolving converted to term loans (31) 0
Total gross charge-offs (6,744) (3,849)
Pass    
Credit quality categories    
Prior 1,316,177 1,172,110
Year One 625,423 405,414
Year Two 948,569 757,185
Year Three 540,936 1,030,804
Year Four 457,235 632,577
Year Five 616,279 461,566
Revolving loans 230,110 229,782
Revolving converted to term loans 30,333 17,422
Total 4,765,062 4,706,860
Special mention    
Credit quality categories    
Prior 18,928 9,159
Year One 17,688 518
Year Two 34,792 2,964
Year Three 953 19,746
Year Four 76 0
Year Five 54 0
Revolving loans 910 1,120
Revolving converted to term loans 0 11
Total 73,401 33,518
Substandard    
Credit quality categories    
Prior 27,559 13,975
Year One 19,902 0
Year Two 4,261 4,389
Year Three 1,302 2,407
Year Four 324 1,948
Year Five 414 0
Revolving loans 3,383 1,291
Revolving converted to term loans 173 501
Total 57,318 24,511
Commercial real estate    
Credit quality categories    
Prior 975,147 837,589
Year One 384,409 297,098
Year Two 593,778 441,039
Year Three 242,514 554,682
Year Four 140,212 250,482
Year Five 265,405 136,891
Revolving loans 15,395 25,941
Revolving converted to term loans 27,136 14,084
Total 2,643,996 2,557,806
Current period gross charge-offs    
Gross charge-offs, Prior (109) 0
Gross charge-offs, Year One (2,640) 0
Gross charge-offs, Year Two 0 0
Gross charge-offs, Year Three 0 0
Gross charge-offs, Year Four 0 0
Gross charge-offs, Year Five 0 0
Revolving loans 0 0
Revolving converted to term loans 0 0
Total gross charge-offs (2,749) 0
Commercial real estate | Pass    
Credit quality categories    
Prior 939,986 822,391
Year One 364,719 297,098
Year Two 556,924 435,084
Year Three 242,170 534,936
Year Four 139,929 250,482
Year Five 265,405 136,891
Revolving loans 14,703 24,966
Revolving converted to term loans 27,136 14,084
Total 2,550,972 2,515,932
Commercial real estate | Special mention    
Credit quality categories    
Prior 15,105 7,514
Year One 2,884 0
Year Two 34,014 2,964
Year Three 344 19,746
Year Four 0 0
Year Five 0 0
Revolving loans 0 417
Revolving converted to term loans 0 0
Total 52,347 30,641
Commercial real estate | Substandard    
Credit quality categories    
Prior 20,056 7,684
Year One 16,806 0
Year Two 2,840 2,991
Year Three 0 0
Year Four 283 0
Year Five 0 0
Revolving loans 692 558
Revolving converted to term loans 0 0
Total 40,677 11,233
Residential real estate    
Credit quality categories    
Prior 328,473 298,249
Year One 198,987 79,086
Year Two 276,136 213,280
Year Three 216,231 295,692
Year Four 147,517 221,638
Year Five 114,412 101,005
Revolving loans 132,513 119,843
Revolving converted to term loans 695 613
Total 1,414,964 1,329,406
Current period gross charge-offs    
Gross charge-offs, Prior (5) (1)
Gross charge-offs, Year One 0 0
Gross charge-offs, Year Two 0 0
Gross charge-offs, Year Three 0 0
Gross charge-offs, Year Four 0 0
Gross charge-offs, Year Five 0 0
Revolving loans (45) 0
Revolving converted to term loans 0 0
Total gross charge-offs (50) (1)
Residential real estate | Pass    
Credit quality categories    
Prior 317,764 291,306
Year One 182,198 78,568
Year Two 275,869 211,938
Year Three 215,397 295,402
Year Four 147,517 220,753
Year Five 114,300 101,005
Revolving loans 131,075 119,367
Revolving converted to term loans 695 613
Total 1,384,815 1,318,952
Residential real estate | Special mention    
Credit quality categories    
Prior 3,719 1,529
Year One 14,777 518
Year Two 0 0
Year Three 504 0
Year Four 0 0
Year Five 0 0
Revolving loans 65 0
Revolving converted to term loans 0 0
Total 19,065 2,047
Residential real estate | Substandard    
Credit quality categories    
Prior 6,990 5,414
Year One 2,012 0
Year Two 267 1,342
Year Three 330 290
Year Four 0 885
Year Five 112 0
Revolving loans 1,373 476
Revolving converted to term loans 0 0
Total 11,084 8,407
Construction    
Credit quality categories    
Prior 27,182 32,244
Year One 7,238 8,191
Year Two 7,047 8,628
Year Three 28,868 56,685
Year Four 108,885 70,232
Year Five 151,981 131,383
Revolving loans 13,070 26,785
Revolving converted to term loans 632 1,851
Total 344,903 335,999
Current period gross charge-offs    
Gross charge-offs, Prior 0 0
Gross charge-offs, Year One 0 0
Gross charge-offs, Year Two 0 (12)
Gross charge-offs, Year Three 0 0
Gross charge-offs, Year Four 0 0
Gross charge-offs, Year Five 0 0
Revolving loans 0 0
Revolving converted to term loans 0 0
Total gross charge-offs 0 (12)
Construction | Pass    
Credit quality categories    
Prior 27,094 31,884
Year One 7,238 8,191
Year Two 7,047 8,628
Year Three 28,868 56,685
Year Four 108,885 70,232
Year Five 151,738 131,383
Revolving loans 13,070 26,785
Revolving converted to term loans 632 1,851
Total 344,572 335,639
Construction | Special mention    
Credit quality categories    
Prior 0 0
Year One 0 0
Year Two 0 0
Year Three 0 0
Year Four 0 0
Year Five 0 0
Revolving loans 0 0
Revolving converted to term loans 0 0
Total 0 0
Construction | Substandard    
Credit quality categories    
Prior 88 360
Year One 0 0
Year Two 0 0
Year Three 0 0
Year Four 0 0
Year Five 243 0
Revolving loans 0 0
Revolving converted to term loans 0 0
Total 331 360
Commercial    
Credit quality categories    
Prior 23,907 25,845
Year One 26,600 11,088
Year Two 20,604 40,825
Year Three 15,557 30,399
Year Four 29,383 29,958
Year Five 35,256 39,489
Revolving loans 72,656 58,942
Revolving converted to term loans 2,043 1,386
Total 226,006 237,932
Current period gross charge-offs    
Gross charge-offs, Prior (71) (54)
Gross charge-offs, Year One 0 (11)
Gross charge-offs, Year Two 0 0
Gross charge-offs, Year Three (329) (56)
Gross charge-offs, Year Four 0 (69)
Gross charge-offs, Year Five 0 0
Revolving loans (381) 0
Revolving converted to term loans (31) 0
Total gross charge-offs (812) (190)
Commercial | Pass    
Credit quality categories    
Prior 23,379 25,214
Year One 25,518 11,088
Year Two 19,739 40,817
Year Three 14,925 29,142
Year Four 29,307 29,458
Year Five 35,202 39,489
Revolving loans 70,493 57,982
Revolving converted to term loans 1,870 874
Total 220,433 234,064
Commercial | Special mention    
Credit quality categories    
Prior 104 116
Year One 27 0
Year Two 107 0
Year Three 105 0
Year Four 76 0
Year Five 54 0
Revolving loans 845 703
Revolving converted to term loans 0 11
Total 1,318 830
Commercial | Substandard    
Credit quality categories    
Prior 424 515
Year One 1,055 0
Year Two 758 8
Year Three 527 1,257
Year Four 0 500
Year Five 0 0
Revolving loans 1,318 257
Revolving converted to term loans 173 501
Total 4,255 3,038
Consumer    
Credit quality categories    
Prior 7,955 1,317
Year One 45,779 10,469
Year Two 90,057 60,766
Year Three 40,021 115,499
Year Four 31,638 62,215
Year Five 49,693 52,798
Revolving loans 769 682
Revolving converted to term loans 0 0
Total 265,912 303,746
Current period gross charge-offs    
Gross charge-offs, Prior (451) (1,287)
Gross charge-offs, Year One (99) (12)
Gross charge-offs, Year Two (1,595) (389)
Gross charge-offs, Year Three (646) (1,764)
Gross charge-offs, Year Four (324) (177)
Gross charge-offs, Year Five 0 0
Revolving loans (18) (17)
Revolving converted to term loans 0 0
Total gross charge-offs (3,133) (3,646)
Consumer | Pass    
Credit quality categories    
Prior 7,954 1,315
Year One 45,750 10,469
Year Two 88,990 60,718
Year Three 39,576 114,639
Year Four 31,597 61,652
Year Five 49,634 52,798
Revolving loans 769 682
Revolving converted to term loans 0 0
Total 264,270 302,273
Consumer | Special mention    
Credit quality categories    
Prior 0 0
Year One 0 0
Year Two 671 0
Year Three 0 0
Year Four 0 0
Year Five 0 0
Revolving loans 0 0
Revolving converted to term loans 0 0
Total 671 0
Consumer | Substandard    
Credit quality categories    
Prior 1 2
Year One 29 0
Year Two 396 48
Year Three 445 860
Year Four 41 563
Year Five 59 0
Revolving loans 0 0
Revolving converted to term loans 0 0
Total 971 1,473
Credit cards    
Credit quality categories    
Prior 0 0
Year One 0 0
Year Two 0 0
Year Three 0 0
Year Four 0 0
Year Five 0 0
Revolving loans 4,521 7,099
Revolving converted to term loans 0 0
Total 4,521 7,099
Current period gross charge-offs    
Gross charge-offs, Prior 0 0
Gross charge-offs, Year One 0 0
Gross charge-offs, Year Two 0 0
Gross charge-offs, Year Three 0 0
Gross charge-offs, Year Four 0 0
Gross charge-offs, Year Five 0 0
Revolving loans (535) (584)
Revolving converted to term loans 0 0
Total gross charge-offs (535) (584)
Credit cards | Performing    
Credit quality categories    
Prior 0 0
Year One 0 0
Year Two 0 0
Year Three 0 0
Year Four 0 0
Year Five 0 0
Revolving loans 4,473 6,931
Revolving converted to term loans 0 0
Total 4,473 6,931
Credit cards | Nonperforming    
Credit quality categories    
Prior 0 0
Year One 0 0
Year Two 0 0
Year Three 0 0
Year Four 0 0
Year Five 0 0
Revolving loans 48 168
Revolving converted to term loans 0 0
Total $ 48 $ 168
v3.25.4
Loans and Allowance for Credit Losses - Aging of Past Due Financing Receivables (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 4,900,302 $ 4,771,988
Nonaccrual Current Loans $ 39,960 $ 21,008
Percent of total loans, total loans 100.00% 100.00%
Current    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 4,855,183 $ 4,741,879
Nonaccrual Current Loans $ 32,536 $ 7,754
Percent of total loans, accrual 0.9908 0.9937
Percent of total loans, nonaccrual 0.66% 0.16%
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 12,583 $ 22,355
Percent of total loans, total past due 0.26% 0.47%
30‑59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 3,751 $ 8,314
Percent of total loans, total past due 0.08% 0.17%
60‑89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 1,153 $ 493
Percent of total loans, total past due 0.02% 0.01%
90 Days Past Due and Still Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 255 $ 294
Percent of total loans, total past due 0.01% 0.01%
30-89 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 1,414 $ 4,163
Percent of total loans, total past due 0.03% 0.09%
90 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 6,010 $ 9,091
Percent of total loans, total past due 0.12% 0.19%
Commercial real estate    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 2,643,996 $ 2,557,806
Nonaccrual Current Loans 25,633 10,386
Commercial real estate | Current    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 2,616,679 2,547,345
Nonaccrual Current Loans 22,824 3,118
Commercial real estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 4,493 7,343
Commercial real estate | 30‑59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 1,684 75
Commercial real estate | 60‑89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 0 0
Commercial real estate | 90 Days Past Due and Still Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 0 0
Commercial real estate | 30-89 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 68 2,328
Commercial real estate | 90 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 2,741 4,940
Residential real estate    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 1,414,964 1,329,406
Nonaccrual Current Loans 10,138 7,614
Residential real estate | Current    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 1,402,695 1,317,591
Nonaccrual Current Loans 6,330 3,635
Residential real estate | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 5,939 8,180
Residential real estate | 30‑59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 1,663 3,828
Residential real estate | 60‑89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 397 246
Residential real estate | 90 Days Past Due and Still Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 71 127
Residential real estate | 30-89 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 1,225 655
Residential real estate | 90 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 2,583 3,324
Construction    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 344,903 335,999
Nonaccrual Current Loans 88 360
Construction | Current    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 344,693 335,609
Nonaccrual Current Loans 0 0
Construction | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 210 390
Construction | 30‑59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 0 30
Construction | 60‑89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 43 0
Construction | 90 Days Past Due and Still Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 79 0
Construction | 30-89 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 0 0
Construction | 90 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 88 360
Commercial    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 226,006 237,932
Nonaccrual Current Loans 3,081 1,007
Commercial | Current    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 222,921 236,771
Nonaccrual Current Loans 2,885 937
Commercial | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 200 224
Commercial | 30‑59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 0 152
Commercial | 60‑89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 4 2
Commercial | 90 Days Past Due and Still Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 0 0
Commercial | 30-89 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 46 0
Commercial | 90 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 150 70
Consumer    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 265,912 303,746
Nonaccrual Current Loans 972 1,473
Consumer | Current    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 263,860 298,150
Nonaccrual Current Loans 481 42
Consumer | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 1,571 5,554
Consumer | 30‑59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 390 4,068
Consumer | 60‑89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 690 55
Consumer | 90 Days Past Due and Still Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 0 0
Consumer | 30-89 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 43 1,180
Consumer | 90 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 448 251
Credit cards    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 4,521 7,099
Nonaccrual Current Loans 48 168
Credit cards | Current    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 4,335 6,413
Nonaccrual Current Loans 16 22
Credit cards | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 170 664
Credit cards | 30‑59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 14 161
Credit cards | 60‑89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 19 190
Credit cards | 90 Days Past Due and Still Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 105 167
Credit cards | 30-89 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans 32 0
Credit cards | 90 Days Past Due and Not Accruing    
Financing Receivable, Past Due [Line Items]    
Current Accrual Loans $ 0 $ 146
v3.25.4
Loans and Allowance for Credit Losses - Allowance for Credit Losses on Financing Receivables (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]    
Beginning Balance $ 57,910 $ 57,351
Charge-offs (7,279) (4,433)
Recoveries 632 361
Provisions 7,573 4,631
Ending Balance 58,836 57,910
Commercial real estate    
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]    
Beginning Balance 22,846 23,015
Charge-offs (2,749) 0
Recoveries 78 0
Provisions 1,212 (169)
Ending Balance 21,387 22,846
Residential real estate    
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]    
Beginning Balance 21,776 19,909
Charge-offs (50) (1)
Recoveries 196 7
Provisions 588 1,861
Ending Balance 22,510 21,776
Construction    
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]    
Beginning Balance 2,854 3,935
Charge-offs 0 (12)
Recoveries 1 13
Provisions 3,113 (1,082)
Ending Balance 5,968 2,854
Commercial    
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]    
Beginning Balance 3,138 2,671
Charge-offs (812) (190)
Recoveries 112 15
Provisions 567 642
Ending Balance 3,005 3,138
Consumer    
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]    
Beginning Balance 6,889 7,601
Charge-offs (3,133) (3,646)
Recoveries 242 317
Provisions 1,769 2,617
Ending Balance 5,767 6,889
Credit cards    
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]    
Beginning Balance 407 220
Charge-offs (535) (584)
Recoveries 3 9
Provisions 324 762
Ending Balance $ 199 $ 407
v3.25.4
Loans and Allowance for Credit Losses - Collateral-Dependent Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net $ 4,841,466 $ 4,714,078
Total    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 57,227 26,740
Real Estate Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 52,092 22,218
Other Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 5,135 4,522
Commercial real estate | Total    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 40,676 12,835
Commercial real estate | Real Estate Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 40,676 12,835
Commercial real estate | Other Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 0 0
Residential real estate | Total    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 11,084 9,023
Residential real estate | Real Estate Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 11,084 9,023
Residential real estate | Other Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 0 0
Construction | Total    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 332 360
Construction | Real Estate Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 332 360
Construction | Other Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 0 0
Commercial | Total    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 4,164 3,039
Commercial | Real Estate Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 0 0
Commercial | Other Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 4,164 3,039
Consumer | Total    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 971 1,483
Consumer | Real Estate Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net 0 0
Consumer | Other Collateral    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, net $ 971 $ 1,483
v3.25.4
Loans and Allowance for Credit Losses - Loans Modified (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
loan
Dec. 31, 2024
USD ($)
loan
Dec. 31, 2023
USD ($)
loan
Financing Receivable, Allowance for Credit Loss [Line Items]      
Quantity of Loans Modified | loan 11 1 3
Loans Modified $ 5,481 $ 1,362 $ 604
% of Total Portfolio Segment 0.11% 0.03% 0.01%
Financing receivable modified during preceding 12 months $ 5,300 $ 1,400  
Financing receivable, excluding accrued interest, non-accrual, modified in period, amount $ 170    
Number of loan modifications made to borrowers experiencing financial difficulty in preceding 12 months | loan 0 0  
Principal Forgiveness      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 0 $ 0 $ 0
Payment Delay      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 0 0
Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 1,362 604
Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 0 0
Payment Delay and Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 0 0
Term Extension and Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 5,481 $ 0 $ 0
Commercial real estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Quantity of Loans Modified | loan 6 1 2
Loans Modified $ 5,166 $ 1,362 $ 253
% of Total Portfolio Segment 0.20% 0.05% 0.01%
Commercial real estate | Principal Forgiveness      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 0 $ 0 $ 0
Commercial real estate | Payment Delay      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 0 0
Commercial real estate | Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 1,362 253
Commercial real estate | Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 0 0
Commercial real estate | Payment Delay and Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0 0 0
Commercial real estate | Term Extension and Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 5,166 $ 0 $ 0
Residential real estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Quantity of Loans Modified | loan 3    
Loans Modified $ 145    
% of Total Portfolio Segment 0.01%    
Residential real estate | Principal Forgiveness      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 0    
Residential real estate | Payment Delay      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0    
Residential real estate | Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0    
Residential real estate | Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0    
Residential real estate | Payment Delay and Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0    
Residential real estate | Term Extension and Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 145    
Commercial      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Quantity of Loans Modified | loan 2   1
Loans Modified $ 170   $ 351
% of Total Portfolio Segment 0.08%   0.15%
Commercial | Principal Forgiveness      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 0   $ 0
Commercial | Payment Delay      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0   0
Commercial | Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0   351
Commercial | Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0   0
Commercial | Payment Delay and Term Extension      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified 0   0
Commercial | Term Extension and Interest Rate Reduction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Loans Modified $ 170   $ 0
v3.25.4
Loans and Allowance for Credit Losses - Mortgage Servicing Rights (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Servicing Asset at Fair Value, Amount [Roll Forward]  
Beginning balance $ 5,874
Net additions 126
Amortization expense (528)
Other (330)
Ending balance $ 5,142
v3.25.4
Goodwill and Other Intangible Assets - Components (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Gross carrying amount $ 63,266 $ 63,266
Accumulated impairment charges 0 0
Net carrying amount 63,266 63,266
Goodwill and Intangible Assets [Line Items]    
Total amortizing intangible assets 29,722 38,311
Core Deposit Intangible    
Goodwill and Intangible Assets [Line Items]    
Gross carrying amount 59,151 59,151
Accumulated amortization (29,429) (20,840)
Total amortizing intangible assets $ 29,722 $ 38,311
v3.25.4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of other intangible assets $ 8,589 $ 9,779 $ 6,105
v3.25.4
Goodwill and Other Intangible Assets - Future Amortization Expense for Amortizable Other Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2026 $ 7,398  
2027 6,208  
2028 5,060  
2029 3,980  
2030 3,096  
Thereafter 3,980  
Total amortizing intangible assets $ 29,722 $ 38,311
v3.25.4
Leases - Lease Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Lessee, Lease, Description [Line Items]    
Right-of-use assets $ 10,523 $ 11,385
Lease liabilities $ 11,027 $ 11,844
Weighted-average remaining lease term 8 years 10 months 28 days 10 years 2 months 12 days
Weighted-average discount rate 3.42% 3.29%
Minimum    
Lessee, Lease, Description [Line Items]    
Remaining lease term 4 months 9 days 3 days
Maximum    
Lessee, Lease, Description [Line Items]    
Remaining lease term 15 years 8 months 4 days 16 years 8 months 4 days
v3.25.4
Leases - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 2,009 $ 1,916 $ 1,645
Total lease cost 2,009 1,916 1,645
Cash paid for amounts included in the measurement of lease liabilities $ 1,954 $ 1,809 $ 1,553
v3.25.4
Leases - Lease Payments Due (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 2,020  
2027 1,869  
2028 1,779  
2029 1,355  
2030 997  
Thereafter 4,578  
Total undiscounted cash flows 12,598  
Less: imputed interest 1,571  
Lease liabilities $ 11,027 $ 11,844
v3.25.4
Leases - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Gross rental income $ 1.1 $ 1.1 $ 1.2
Operating Lease Income, Comprehensive Income, Extensible List Not Disclosed, Flag     gross rental income
v3.25.4
Premises and Equipment - Components (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross $ 103,355 $ 101,770
Accumulated depreciation (23,187) (19,964)
Premises and equipment, net 80,168 81,806
Land    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 18,266 18,266
Buildings and land improvements    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 71,485 71,721
Furniture and equipment    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross $ 13,604 $ 11,783
v3.25.4
Premises and Equipment - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Abstract]      
Depreciation $ 4.4 $ 4.4 $ 3.3
v3.25.4
Deposits - Summary (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Balance    
Noninterest-bearing deposits $ 1,587,953 $ 1,562,815
Interest-bearing deposits:    
Interest-bearing checking 852,585 978,076
Money market and savings 1,814,928 1,805,884
Time deposits 1,267,487 1,181,561
Brokered deposits 10,911 0
Total interest-bearing 3,945,911 3,965,521
Total deposits $ 5,533,864 $ 5,528,336
% of Total Deposits    
Noninterest-bearing deposits (as a percent) 0.2869 0.2827
Interest-bearing:    
Interest-bearing checking (as a percent) 15.41% 17.69%
Money market and savings (as a percent) 32.80% 32.67%
Time deposits (as a percent) 22.90% 21.37%
Brokered deposits (as a percent) 0.20% 0.00%
Total interest-bearing (as a percent) 71.31% 71.73%
Total deposits (as a percent) 1.0000 1.0000
v3.25.4
Deposits - Contractual Maturities of Certificates of Deposit (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Deposits [Abstract]  
Within one year $ 1,163,823
Year 2 79,259
Year 3 11,964
Year 4 5,115
Year 5 7,326
Thereafter 0
Total $ 1,267,487
v3.25.4
Deposits - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deposits [Abstract]    
Aggregate amount of deposits that exceed the FDIC insurance limit $ 403.5 $ 374.1
v3.25.4
Borrowings - Summary (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
FHLB advances – variable    
Short-Term Debt [Line Items]    
Average for the year $ 602 $ 37,648
Average for the year, rate 4.64% 5.66%
At year end $ 0 $ 0
At year end, rate 0.00% 0.00%
FHLB advances - fixed    
Short-Term Debt [Line Items]    
Average for the year $ 42,466 $ 32,650
Average for the year, rate 4.85% 4.87%
At year end $ 0 $ 50,000
At year end, rate 0.00% 4.79%
v3.25.4
Borrowings - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Line of credit facility $ 754,400  
Letters of credit outstanding, amount 33,700 $ 6,100
Long-term debt 89,061 73,717
Federal Funds Line Of Credit And Reverse Repurchase Agreement | Line of Credit    
Debt Instrument [Line Items]    
Short-term borrowings 95,000  
Subordinated Debt    
Debt Instrument [Line Items]    
Long-term debt, gross 60,000 44,500
Subordinated Debt | Severn Bancorp, Inc.    
Debt Instrument [Line Items]    
Long-term debt 19,000  
Unamortized fair value adjustment 1,700  
Subordinated Debt | Subordinated Debentures due November 2035    
Debt Instrument [Line Items]    
Long-term debt, gross 60,000 0
Long-term debt $ 58,900  
Percentage of subordinated debt considered as Tier 2 capital 100.00%  
Subordinated Debt | Tri-County Capital Trust I    
Debt Instrument [Line Items]    
Long-term debt $ 6,700  
Unamortized fair value adjustment 504  
Subordinated Debt | Tri-County Capital Trust II    
Debt Instrument [Line Items]    
Long-term debt 4,500  
Unamortized fair value adjustment 661  
Trust Preferred Securities    
Debt Instrument [Line Items]    
Long-term debt, gross 32,991 32,991
Trust Preferred Securities | Severn Capital Trust I    
Debt Instrument [Line Items]    
Long-term debt, gross 20,619 20,619
Trust Preferred Securities | Tri-County Capital Trust I    
Debt Instrument [Line Items]    
Long-term debt, gross 7,217 7,217
Trust Preferred Securities | Tri-County Capital Trust II    
Debt Instrument [Line Items]    
Long-term debt, gross 5,155 5,155
Federal Home Loan Bank Advances    
Debt Instrument [Line Items]    
Short-term borrowings 0 0
Long-term debt, gross $ 0 $ 50,000
v3.25.4
Borrowings - Information on Long-Term Debt (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Less: net discount and unamortized issuance costs $ (3,930) $ (3,774)
Total long-term debt 89,061 73,717
Subordinated Debt    
Debt Instrument [Line Items]    
Long-term debt, gross 60,000 44,500
Subordinated Debt | Subordinated Debentures due September 2030    
Debt Instrument [Line Items]    
Long-term debt, gross $ 0 25,000
Stated interest rate (as a percent) 5.375%  
Basis spread on variable rate (as a percent) 5.265%  
Subordinated Debt | Subordinated Debentures due October 2030    
Debt Instrument [Line Items]    
Long-term debt, gross $ 0 19,500
Stated interest rate (as a percent) 4.75%  
Basis spread on variable rate (as a percent) 4.58%  
Subordinated Debt | Subordinated Debentures due November 2035    
Debt Instrument [Line Items]    
Long-term debt, gross $ 60,000 0
Total long-term debt $ 58,900  
Stated interest rate (as a percent) 6.25%  
Basis spread on variable rate (as a percent) 2.88%  
Subordinated Debt | Tri-County Capital Trust I    
Debt Instrument [Line Items]    
Total long-term debt $ 6,700  
Subordinated Debt | Tri-County Capital Trust II    
Debt Instrument [Line Items]    
Total long-term debt 4,500  
Trust Preferred Securities    
Debt Instrument [Line Items]    
Long-term debt, gross 32,991 32,991
Trust Preferred Securities | Severn Capital Trust I    
Debt Instrument [Line Items]    
Long-term debt, gross $ 20,619 20,619
Basis spread on variable rate (as a percent) 2.26%  
Trust Preferred Securities | Tri-County Capital Trust I    
Debt Instrument [Line Items]    
Long-term debt, gross $ 7,217 7,217
Basis spread on variable rate (as a percent) 2.86%  
Trust Preferred Securities | Tri-County Capital Trust II    
Debt Instrument [Line Items]    
Long-term debt, gross $ 5,155 $ 5,155
Basis spread on variable rate (as a percent) 1.96%  
v3.25.4
Benefit Plans (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
period
shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jul. 01, 2025
shares
Defined Contribution Plan Disclosure [Line Items]        
Company contributions | $ $ 2,100,000 $ 1,900,000 $ 1,700,000  
Common shares issued for employee stock purchase plan (in shares) | shares 10,793      
Proceeds from ESPP | $ $ 142,000      
Employee Stock        
Defined Contribution Plan Disclosure [Line Items]        
Number of offering periods | period 4      
Discount rate (as a percent) 15.00%      
Aggregate purchase, maximum fair value per employee | $ $ 25,000      
Number of shares authorized (in shares) | shares       250,000
Shares available to be granted (in shares) | shares 239,207      
Threshold One        
Defined Contribution Plan Disclosure [Line Items]        
Percent of match 100.00%      
Percent of employees' gross pay (as percent) 3.00%      
Thereshold Two        
Defined Contribution Plan Disclosure [Line Items]        
Percent of match 50.00%      
Percent of employees' gross pay (as percent) 2.00%      
v3.25.4
Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jun. 04, 2025
Equity Plan 2016        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares available to be granted (in shares) 73,967      
Equity Plan 2025        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Common stock, capital shares reserved for future issuance 1,073,967      
Shares available to be granted (in shares) 992,641      
Restricted Stock Units        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period 3 years      
Other than options, vested, fair value $ 1,400 $ 914 $ 178  
Number of awards vested (in shares) 86,320      
Restricted Stock Units | Equity Plan 2016        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Transferred (in shares) 90,783      
Transferred (in dollars per share) $ 11.56      
Restricted Stock Units | Minimum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period 1 year      
Restricted Stock Units | Maximum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period 3 years      
Time Based Restricted Stock Awards | Equity Plan 2025        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Common stock, capital shares reserved for future issuance       1,000,000
Restricted Stock        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Other than options, vested, fair value $ 749 $ 588 $ 615  
Number of awards vested (in shares) 51,610      
Restricted Stock | Equity Plan 2016        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Transferred (in shares) 3,977      
Restricted Stock | Minimum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period 3 years      
Restricted Stock | Maximum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting period 5 years      
Performance Stock Units        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Number of awards vested (in shares) 0 0 0  
v3.25.4
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Stock-based compensation expense $ 1,890 $ 1,730 $ 1,174
Restricted Stock      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Unrecognized stock-based compensation expense $ 1    
Weighted-average period unrecognized expense is expected to be recognized 2 months 12 days    
Restricted Stock Units      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Unrecognized stock-based compensation expense $ 1,770    
Weighted-average period unrecognized expense is expected to be recognized 1 year 6 months    
Performance Stock Units      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Unrecognized stock-based compensation expense $ 784    
Weighted-average period unrecognized expense is expected to be recognized 1 year 10 months 24 days    
v3.25.4
Stock-Based Compensation - Award Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restricted Stock      
Number of Shares      
Nonvested at beginning of period (in shares) 51,610    
Granted (in shares) 4,480    
Vested (in shares) (51,610)    
Forfeited (in shares) (1,305)    
Nonvested at end of period (in shares) 3,175 51,610  
Weighted-Average Grant Date Fair Value per Share      
Nonvested at beginning of period (in dollars per share) $ 11.42    
Granted (in dollars per share) 15.62    
Vested (in dollars per share) 11.39    
Forfeited (in dollars per share) 15.62    
Nonvested at end of period (in dollars per share) $ 16.01 $ 11.42  
Restricted Stock Units      
Number of Shares      
Nonvested at beginning of period (in shares) 135,104    
Granted (in shares) 133,866    
Vested (in shares) (86,320)    
Forfeited (in shares) (6,244)    
Nonvested at end of period (in shares) 176,406 135,104  
Weighted-Average Grant Date Fair Value per Share      
Nonvested at beginning of period (in dollars per share) $ 11.46    
Granted (in dollars per share) 15.57    
Vested (in dollars per share) 11.57    
Forfeited (in dollars per share) 13.59    
Nonvested at end of period (in dollars per share) $ 14.45 $ 11.46  
Performance Stock Units      
Number of Shares      
Nonvested at beginning of period (in shares) 43,651    
Granted (in shares) 59,179    
Vested (in shares) 0 0 0
Forfeited (in shares) (8,784)    
Nonvested at end of period (in shares) 94,046 43,651  
Weighted-Average Grant Date Fair Value per Share      
Nonvested at beginning of period (in dollars per share) $ 11.32    
Granted (in dollars per share) 15.15    
Vested (in dollars per share) 0    
Forfeited (in dollars per share) 13.30    
Nonvested at end of period (in dollars per share) $ 13.55 $ 11.32  
v3.25.4
Derivatives - Narrative (Details) - IRLCs
 12 Months Ended
Dec. 31, 2025
Minimum  
Derivatives, Fair Value [Line Items]  
Period between issuance of loan commitment and closing and sale of loan 14 days
Maximum  
Derivatives, Fair Value [Line Items]  
Period between issuance of loan commitment and closing and sale of loan 120 days
v3.25.4
Derivatives - Carrying Amounts of Derivative Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
IRLCs    
Derivatives, Fair Value [Line Items]    
Derivative asset, notional amount $ 6,172 $ 7,527
Derivative asset, estimated fair value 91 113
Derivative liability, notional amount 193 0
Derivative liability, estimated fair value 1 0
TBA forward trades    
Derivatives, Fair Value [Line Items]    
Derivative asset, notional amount 9,750 22,100
Derivative asset, estimated fair value 11 164
Derivative liability, notional amount 20,150 7,550
Derivative liability, estimated fair value $ 59 $ 23
v3.25.4
Deferred Compensation - Narrative (Details) - Management and Highly Compensated Employees - Executive Deferred Compensation Plan
 12 Months Ended
Dec. 31, 2025
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items]  
Employee percentage of salary 50.00%
Employee percentage of bonus 100.00%
Award vesting period 3 years
v3.25.4
Deferred Compensation - Information on Employer Contributions and Participant Deferrals (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Deferred Compensation Arrangements [Abstract]      
Employer contributions $ 218 $ 140 $ 52
Participant elective deferrals 287 276 273
Deferred compensation liability $ 1,812 $ 1,506 $ 1,576
v3.25.4
Deferred Compensation - SERP Liability and Information on Deferred Compensation Liability and Cash Surrender Value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items]      
Cash surrender value $ 105,839 $ 104,421  
Deferred compensation liability 1,812 1,506 $ 1,576
Former Directors from CNB      
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items]      
Cash surrender value 1,547 2,257  
Deferred compensation liability 200 331  
SERP Plan      
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items]      
Cash surrender value 102,150 100,517 98,140
Deferred compensation liability 13,576 13,349 12,869
SERP expense $ 1,166 $ 1,050 $ 1,405
v3.25.4
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning of period $ 541,066 $ 511,135 $ 364,285
Other comprehensive income (loss), net of tax 2,952 (51) 1,527
End of period 589,873 541,066 511,135
Accumulated Other Comprehensive Loss      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning of period (7,545) (7,494) (9,021)
Other comprehensive income (loss), net of tax 2,952 (51) 1,527
End of period $ (4,593) $ (7,545) $ (7,494)
v3.25.4
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current income tax expense:      
Federal $ 13,870 $ 4,264 $ 172
State 4,357 1,681 63
Total current income tax expense 18,227 5,945 235
Deferred income tax expense:      
Federal 536 6,570 1,692
State 386 2,300 1,029
Total deferred income tax expense 922 8,870 2,721
Total income tax expense 19,149 14,815 2,956
Pre-tax income from continuing foreign operations 0 0 0
Foreign tax expense $ 0 $ 0 $ 0
v3.25.4
Income Taxes - Reconciliation Effective Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Tax at federal statutory rate $ 16,518    
State and local income taxes, net of federal tax benefits 3,746    
Low-income housing (21)    
Appreciation in cash surrender value of life insurance (821)    
Other (273)    
Total income tax expense $ 19,149 $ 14,815 $ 2,956
Percent      
Tax at federal statutory rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal tax benefits 4.70% 5.40% 6.10%
Low-income housing 0.00%    
Appreciation in cash surrender value of life insurance (1.10%)    
Other (0.30%) 0.10% 3.90%
Tax-exempt income   1.40% 3.60%
Bargain purchase gain   0 (0.131)
Nondeductible compensation costs   0.001 0.039
Nondeductible merger-related expenses   0 0.026
Actual income tax 24.40% 25.20% 20.80%
v3.25.4
Income Taxes - Income Tax Paid (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Income Tax Paid, by Individual Jurisdiction [Line Items]  
Federal $ 13,050
Total taxes paid 15,070
Maryland  
Income Tax Paid, by Individual Jurisdiction [Line Items]  
State and local: $ 2,020
v3.25.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Allowance for credit losses $ 15,035 $ 14,888
Valuation adjustments on OREO and repossessed assets 217 0
Nonaccrual loan interest 691 578
Lease liabilities 2,813 3,035
Deferred compensation 4,084 4,078
State net operating losses 2,834 2,066
Deferred loan fees 2,204 2,078
Acquisition fair value adjustments 20,628 24,988
Unrealized losses on available for sale securities 1,734 2,844
Other 1,432 1,233
Total deferred tax assets 51,672 55,788
Deferred tax liabilities:    
Depreciation 4,042 4,115
Right-of-use assets 2,685 2,918
Mortgage servicing rights 1,312 1,505
Acquisition fair value adjustments 826 1,651
Intangibles 9,299 11,223
Other 886 575
Total deferred tax liabilities 19,050 21,987
Less: valuation allowance (2,797) (1,944)
Net deferred tax assets $ 29,825 $ 31,857
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Increase in valuation allowance $ 2,797 $ 1,944
Uncertain tax position liability $ 0 $ 0
v3.25.4
Regulatory Capital Requirements - Capital Amounts and Ratios (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Amount    
Common Tier 1 Capital, amount $ 510,729 $ 458,258
Tier 1 Capital, amount 540,897 488,105
Total Capital, amount 660,451 591,228
Risk-Weighted Assets, amount $ 4,852,573 $ 4,852,564
Ratios    
Common Equity Tier 1 Capital to Risk-Weighted Assets ("RWA"), ratio 0.1052 0.0944
Tier 1 Capital to RWA, ratio 0.1115 0.1006
Total Capital to RWA, ratio 0.1361 0.1218
Tier 1 Capital to AA (Leverage), ratio 0.0882 0.0802
Regulatory Minimum Ratio + Capital Conservation Buffer, Amount    
Common Equity Tier 1 Capital $ 339,680 $ 339,679
Tier 1 Capital 412,469 412,468
Total Capital 509,520 509,519
Risk-Weighted Assets $ 245,172 $ 243,350
Regulatory Minimum Ratio + Capital Conservation Buffer, Ratios    
Common Equity Tier 1 Capital to RWA, ratio 0.0700 0.0700
Tier 1 Capital to RWA, ratio 0.0850 0.0850
Total Capital to RWA, ratio 0.1050 0.1050
Tier 1 Capital to Average Assets (Leverage), ratio 0.0400 0.0400
To Be Well-Capitalized Under Prompt Corrective Action Regulation, Ratios    
Capitalized threshold 5.00% 5.00%
Excess of Tier 1 Capital to RWA over the minimum buffer ratio (as a percent) 0.0515  
The Bank    
Amount    
Common Tier 1 Capital, amount $ 569,183 $ 521,453
Tier 1 Capital, amount 569,183 521,453
Total Capital, amount 629,746 580,706
Risk-Weighted Assets, amount $ 4,844,639 $ 4,851,903
Ratios    
Common Equity Tier 1 Capital to Risk-Weighted Assets ("RWA"), ratio 0.1175 0.1075
Tier 1 Capital to RWA, ratio 0.1175 0.1075
Total Capital to RWA, ratio 0.1300 0.1197
Tier 1 Capital to AA (Leverage), ratio 0.0930 0.0858
Regulatory Minimum Ratio + Capital Conservation Buffer, Amount    
Common Equity Tier 1 Capital $ 339,125 $ 339,633
Tier 1 Capital 411,794 412,412
Total Capital 508,687 509,450
Risk-Weighted Assets $ 244,911 $ 243,102
Regulatory Minimum Ratio + Capital Conservation Buffer, Ratios    
Common Equity Tier 1 Capital to RWA, ratio 0.0700 0.0700
Tier 1 Capital to RWA, ratio 0.0850 0.0850
Total Capital to RWA, ratio 0.1050 0.1050
Tier 1 Capital to Average Assets (Leverage), ratio 0.0400 0.0400
To Be Well-Capitalized Under Prompt Corrective Action Regulation, Amount    
Common Equity Tier 1 Capital $ 314,902 $ 315,374
Tier 1 Capital 387,571 388,152
Total Capital 484,464 485,190
Risk-Weighted Assets $ 306,139 $ 303,877
To Be Well-Capitalized Under Prompt Corrective Action Regulation, Ratios    
Common Equity Tier 1 Capital to RWA, ratio 0.0650 0.0650
Tier 1 Capital to RWA, ratio 0.0800 0.0800
Total Capital to RWA, ratio 0.1000 0.1000
Tier 1 Capital to Average Assets (Leverage), ratio 0.0500 0.0500
Excess of Total Capital to RWA over the minimum buffer ratio (as a percent) 0.0500  
v3.25.4
Regulatory Capital Requirements - Narrative (Details)
Dec. 31, 2025
Dec. 31, 2024
Regulatory Capital Requirements under Banking Regulations [Abstract]    
Capitalized threshold 5.00% 5.00%
v3.25.4
Fair Value Measurements - Estimated Fair Value and Range (Details) - IRLCs
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
IRLCs - Derivative Asset $ 91 $ 113
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
IRLCs - Derivative Asset 91 113
Valuation, Market Approach | Pull through rate | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
IRLCs - Derivative Asset $ 90 $ 113
Minimum | Valuation, Market Approach | Pull through rate | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
IRLCs Range (as a percent) 0.81 0.78
Maximum | Valuation, Market Approach | Pull through rate | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
IRLCs Range (as a percent) 1 1
Arithmetic Average | Valuation, Market Approach | Pull through rate | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
IRLCs Range (as a percent) 0.98 0.89
v3.25.4
Fair Value Measurements - Activity in IRLCs (Details) - IRLCs - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Asset, Subject to Master Netting Arrangement [Roll Forward]      
Beginning balance $ 113 $ 110 $ 28
Valuation adjustment (23) 3 82
Ending balance $ 90 $ 113 $ 110
v3.25.4
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Investment securities:    
Total available for sale securities $ 220,358 $ 149,212
Equity securities 6,186 5,814
Total assets at fair value 259,186 174,909
Loans held for sale 32,540 19,606
Total liabilities at fair value 60 23
Level 1    
Investment securities:    
Total available for sale securities 0 0
Equity securities 0 0
Total assets at fair value 0 0
Loans held for sale 0 0
Total liabilities at fair value 0 0
Level 2    
Investment securities:    
Total available for sale securities 220,358 149,212
Equity securities 6,186 5,814
Total assets at fair value 259,095 174,796
Loans held for sale 32,540 19,606
Total liabilities at fair value 59 23
Level 3    
Investment securities:    
Total available for sale securities 0 0
Equity securities 0 0
Total assets at fair value 91 113
Loans held for sale 0 0
Total liabilities at fair value 1 0
U.S. Treasury and government agency securities    
Investment securities:    
Total available for sale securities 20,616 20,202
U.S. Treasury and government agency securities | Level 1    
Investment securities:    
Total available for sale securities 0 0
U.S. Treasury and government agency securities | Level 2    
Investment securities:    
Total available for sale securities 20,616 20,202
U.S. Treasury and government agency securities | Level 3    
Investment securities:    
Total available for sale securities 0 0
Mortgage-backed securities    
Investment securities:    
Total available for sale securities 195,027 122,384
Mortgage-backed securities | Level 1    
Investment securities:    
Total available for sale securities 0 0
Mortgage-backed securities | Level 2    
Investment securities:    
Total available for sale securities 195,027 122,384
Mortgage-backed securities | Level 3    
Investment securities:    
Total available for sale securities 0 0
Other debt securities    
Investment securities:    
Total available for sale securities 4,715 6,626
Other debt securities | Level 1    
Investment securities:    
Total available for sale securities 0 0
Other debt securities | Level 2    
Investment securities:    
Total available for sale securities 4,715 6,626
Other debt securities | Level 3    
Investment securities:    
Total available for sale securities 0 0
TBA forward trades    
Investment securities:    
Derivative assets 11 164
Derivative liabilities 59 23
TBA forward trades | Level 1    
Investment securities:    
Derivative assets 0 0
Derivative liabilities 0 0
TBA forward trades | Level 2    
Investment securities:    
Derivative assets 11 164
Derivative liabilities 59 23
TBA forward trades | Level 3    
Investment securities:    
Derivative assets 0 0
Derivative liabilities 0 0
IRLCs    
Investment securities:    
Derivative assets 91 113
Derivative liabilities 1  
IRLCs | Level 1    
Investment securities:    
Derivative assets 0 0
Derivative liabilities 0  
IRLCs | Level 2    
Investment securities:    
Derivative assets 0 0
Derivative liabilities 0  
IRLCs | Level 3    
Investment securities:    
Derivative assets 91 $ 113
Derivative liabilities $ 1  
v3.25.4
Fair Value Measurements - Fair Value of Assets Measured on Nonrecurring Basis (Details) - Level 3 - Fair Value, Nonrecurring - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Appraisal of Collateral    
Impaired loans:    
Other real estate owned $ 113 $ 179
Repossessed assets 2,879 3,315
Assets held for sale   900
Appraisal of Collateral | Commercial real estate    
Impaired loans:    
Individually-evaluated collateral dependent loans: 19,696 $ 2,220
Individually evaluated collateral dependent loans, measurement input (as a percent)   62.00%
Appraisal of Collateral | Residential real estate    
Impaired loans:    
Individually-evaluated collateral dependent loans: $ 520 $ 817
Individually evaluated collateral dependent loans, measurement input (as a percent) 0.00%  
Appraisal of Collateral | Commercial    
Impaired loans:    
Individually-evaluated collateral dependent loans: $ 0 0
Individually evaluated collateral dependent loans, measurement input (as a percent) 0.00%  
Appraisal of Collateral | Consumer    
Impaired loans:    
Individually-evaluated collateral dependent loans: $ 0 $ 624
Individually evaluated collateral dependent loans, measurement input (as a percent) 0.00%  
Appraisal of Collateral | Minimum | Commercial real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 60.00%  
Appraisal of Collateral | Minimum | Residential real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent)   55.00%
Appraisal of Collateral | Minimum | Commercial    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent)   14.00%
Appraisal of Collateral | Minimum | Consumer    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent)   80.00%
Appraisal of Collateral | Maximum | Commercial real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 71.00%  
Appraisal of Collateral | Maximum | Residential real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent)   100.00%
Appraisal of Collateral | Maximum | Commercial    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent)   100.00%
Appraisal of Collateral | Maximum | Consumer    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent)   86.00%
Appraisal of Collateral | Weighted Average    
Impaired loans:    
Other real estate owned, measurement input (as a percent) 0.00% 0.00%
Repossessed properties, measurement input (as a percent) 60.00% 39.00%
Assets held for sale, measurement input (as a percent)   0.00%
Appraisal of Collateral | Weighted Average | Commercial real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 68.00% 38.00%
Appraisal of Collateral | Weighted Average | Residential real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 1.00% 17.00%
Appraisal of Collateral | Weighted Average | Commercial    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 0.00% 0.00%
Appraisal of Collateral | Weighted Average | Consumer    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 0.00% 15.00%
Liquidation Expense | Commercial real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
Liquidation Expense | Residential real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
Liquidation Expense | Commercial    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
Liquidation Expense | Consumer    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
Liquidation Expense | Weighted Average | Commercial real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
Liquidation Expense | Weighted Average | Residential real estate    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
Liquidation Expense | Weighted Average | Commercial    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
Liquidation Expense | Weighted Average | Consumer    
Impaired loans:    
Individually evaluated collateral dependent loans, measurement input (as a percent) 10.00% 10.00%
v3.25.4
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets    
Available for sale securities $ 220,358 $ 149,212
Held to maturity securities 378,116 424,734
Equity securities 6,186 5,814
Restricted securities 17,989 20,253
Loans held for sale 32,540 19,606
Mortgage servicing rights 5,142 5,874
Accrued interest receivable 18,551 19,570
Level 1    
Assets    
Cash and cash equivalents 355,566 459,851
Available for sale securities 0 0
Held to maturity securities 0 0
Equity securities 0 0
Restricted securities 0 0
Loans held for sale 0 0
Loans held for investment, at amortized cost, net 0 0
Mortgage servicing rights 0 0
Accrued interest receivable 0 0
Deposits:    
Noninterest-bearing 0 0
Interest-bearing checking 0 0
Money market and savings 0 0
Time deposits 0 0
Brokered deposits 0 0
FHLB advances 0 0
TRUPS 0 0
Subordinated debt 0 0
Accrued interest payable 0 0
Level 1 | TBA securities    
Assets    
Derivative asset 0 0
Deposits:    
Derivative liability 0 0
Level 1 | IRLCs    
Assets    
Derivative asset 0 0
Deposits:    
Derivative liability 0  
Level 2    
Assets    
Cash and cash equivalents 0 0
Available for sale securities 220,358 149,212
Held to maturity securities 378,116 424,734
Equity securities 6,186 5,814
Restricted securities   20,253
Loans held for sale 32,540 19,606
Loans held for investment, at amortized cost, net 0 0
Mortgage servicing rights 5,861 5,874
Accrued interest receivable 18,551 19,570
Deposits:    
Noninterest-bearing 1,587,953 1,562,815
Interest-bearing checking 852,585 978,076
Money market and savings 1,814,928 1,805,884
Time deposits 1,265,740 1,179,716
Brokered deposits 10,923 0
FHLB advances 0 50,201
TRUPS 29,586 27,952
Subordinated debt 58,064 43,669
Accrued interest payable 2,977 3,398
Level 2 | TBA securities    
Assets    
Derivative asset 11 164
Deposits:    
Derivative liability 59 23
Level 2 | IRLCs    
Assets    
Derivative asset 0 0
Deposits:    
Derivative liability 0  
Level 3    
Assets    
Cash and cash equivalents 0 0
Available for sale securities 0 0
Held to maturity securities 0 0
Equity securities 0 0
Restricted securities 0 0
Loans held for sale 0 0
Loans held for investment, at amortized cost, net 4,767,143 4,561,449
Mortgage servicing rights 0 0
Accrued interest receivable 0 0
Deposits:    
Noninterest-bearing 0 0
Interest-bearing checking 0 0
Money market and savings 0 0
Time deposits 0 0
Brokered deposits 0 0
FHLB advances 0 0
TRUPS 0 0
Subordinated debt 0 0
Accrued interest payable 0 0
Level 3 | TBA securities    
Assets    
Derivative asset 0 0
Deposits:    
Derivative liability 0 0
Level 3 | IRLCs    
Assets    
Derivative asset 91 113
Deposits:    
Derivative liability 1  
Carrying Amount    
Assets    
Cash and cash equivalents 355,566 459,851
Available for sale securities 220,358 149,212
Held to maturity securities 414,827 481,077
Equity securities 6,186 5,814
Restricted securities 17,989 20,253
Loans held for sale 32,540 19,606
Loans held for investment, at amortized cost, net 4,841,466 4,714,078
Mortgage servicing rights 5,142 5,874
Accrued interest receivable 18,551 19,570
Deposits:    
Noninterest-bearing 1,587,953 1,562,815
Interest-bearing checking 852,585 978,076
Money market and savings 1,814,928 1,805,884
Time deposits 1,267,487 1,181,561
Brokered deposits 10,911 0
FHLB advances 0 50,000
TRUPS 30,168 29,847
Subordinated debt 58,893 43,870
Accrued interest payable 2,977 3,398
Carrying Amount | TBA securities    
Assets    
Derivative asset 11 164
Deposits:    
Derivative liability 59 23
Carrying Amount | IRLCs    
Assets    
Derivative asset 91 113
Deposits:    
Derivative liability 1  
Fair Value    
Assets    
Cash and cash equivalents 355,566 459,851
Available for sale securities 220,358 149,212
Held to maturity securities 378,116 424,734
Equity securities 6,186 5,814
Restricted securities   20,253
Loans held for sale 32,540 19,606
Loans held for investment, at amortized cost, net 4,767,143 4,561,449
Mortgage servicing rights 5,861 5,874
Accrued interest receivable 18,551 19,570
Deposits:    
Noninterest-bearing 1,587,953 1,562,815
Interest-bearing checking 852,585 978,076
Money market and savings 1,814,928 1,805,884
Time deposits 1,265,740 1,179,716
Brokered deposits 10,923 0
FHLB advances 0 50,201
TRUPS 29,586 27,952
Subordinated debt 58,064 43,669
Accrued interest payable 2,977 3,398
Fair Value | TBA securities    
Assets    
Derivative asset 11 164
Deposits:    
Derivative liability 59 23
Fair Value | IRLCs    
Assets    
Derivative asset 91 $ 113
Deposits:    
Derivative liability $ 1  
v3.25.4
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
Unfunded commitments, provision for credit loss $ 2.0 $ 1.1
v3.25.4
Commitments and Contingencies - Commitments Outstanding (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Commitments outstanding $ 737,775 $ 787,441
Commitments to extend credit    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Commitments outstanding 713,450 759,480
Commitments to extend credit | Fixed    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Commitments outstanding 209,737 261,794
Commitments to extend credit | Variable    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Commitments outstanding 503,713 497,686
Letters of credit    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Commitments outstanding 24,325 27,961
Letters of credit | Fixed    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Commitments outstanding 6,495 8,980
Letters of credit | Variable    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Commitments outstanding $ 17,830 $ 18,981
v3.25.4
Related Party Transactions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jan. 31, 2022
Related Party Transaction [Line Items]        
Loans, net $ 4,841,466 $ 4,714,078    
Loans acquired, net of related discount 4,400 8,200    
Loan repayments 18,500 7,300    
Lease payments $ 1,954 1,809 $ 1,553  
Ownership Percentage of Director in Leasing Center        
Related Party Transaction [Line Items]        
Related party transaction rate (as a percent) 25.00%      
Ownership Percentage of Director in Entity Providing Common Area Maintenance        
Related Party Transaction [Line Items]        
Related party transaction rate (as a percent) 100.00%      
Common Area Maintenance Payment        
Related Party Transaction [Line Items]        
Amount of related party transaction $ 12 12 6  
Annual Fee Consulting Fee        
Related Party Transaction [Line Items]        
Amount of related party transaction 150      
Related Party        
Related Party Transaction [Line Items]        
Loans, net 45,100 54,300    
Law Firm with Common Partner        
Related Party Transaction [Line Items]        
Renewal term       5 years
Proceeds from lease payments 324 318 311  
Director        
Related Party Transaction [Line Items]        
Lease payments $ 108 $ 105 $ 51  
v3.25.4
Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income $ 59,506 $ 43,889 $ 11,228
Average number of common shares outstanding - basic (in shares) 33,392,817 33,267,328 26,572,217
Dilutive effect of common stock equivalents (in shares) 14,338 17,828 1,893
Average number of common shares used to calculate diluted EPS (in shares) 33,407,155 33,285,156 26,574,110
Anti-dilutive shares (in shares) 0 0 0
Basic net income per common share (in dollars per share) $ 1.78 $ 1.32 $ 0.42
Diluted net income per common share (in dollars per share) $ 1.78 $ 1.32 $ 0.42
v3.25.4
Revenue Recognition (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Noninterest income (in-scope of Topic 606) $ 20,853 $ 20,910 $ 18,335
Noninterest income (out-of-scope of Topic 606) 11,835 10,237 14,824
Total noninterest income 32,688 31,147 33,159
Service charges on deposit accounts      
Disaggregation of Revenue [Line Items]      
Noninterest income (in-scope of Topic 606) 6,295 6,149 5,501
Trust and investment fee income      
Disaggregation of Revenue [Line Items]      
Noninterest income (in-scope of Topic 606) 3,705 3,367 3,608
Interchange income      
Disaggregation of Revenue [Line Items]      
Noninterest income (in-scope of Topic 606) 7,085 6,741 5,714
Other noninterest income      
Disaggregation of Revenue [Line Items]      
Noninterest income (in-scope of Topic 606) $ 3,768 $ 4,653 $ 3,512
v3.25.4
Parent Company Financial Information - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
ASSETS        
Other assets $ 31,992 $ 30,256    
TOTAL ASSETS 6,258,818 6,230,763    
LIABILITIES        
Other liabilities 34,993 25,800    
Long-term debt 89,061 73,717    
TOTAL LIABILITIES 5,668,945 5,689,697    
STOCKHOLDERS’ EQUITY        
Common stock 334 333    
Additional paid-in capital 360,554 358,112    
Retained earnings 233,578 190,166    
Accumulated other comprehensive loss (4,593) (7,545)    
TOTAL STOCKHOLDERS’ EQUITY 589,873 541,066 $ 511,135 $ 364,285
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 6,258,818 6,230,763    
Parent Company        
ASSETS        
Cash 21,654 5,257    
Investment in subsidiaries 648,599 605,286    
Other assets 11,885 9,289    
TOTAL ASSETS 682,138 619,832    
LIABILITIES        
Accrued interest payable 839 1,027    
Deferred tax liability 140 251    
Other liabilities 2,225 3,771    
Long-term debt 89,061 73,717    
TOTAL LIABILITIES 92,265 78,766    
STOCKHOLDERS’ EQUITY        
Common stock 334 333    
Additional paid-in capital 360,554 358,112    
Retained earnings 233,578 190,166    
Accumulated other comprehensive loss (4,593) (7,545)    
TOTAL STOCKHOLDERS’ EQUITY 589,873 541,066    
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 682,138 $ 619,832    
v3.25.4
Parent Company Financial Information - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Parent Company Financial Information [Line Items]      
Bargain purchase gain $ 0 $ 0 $ 8,816
EXPENSES      
Interest expense 117,651 124,789 78,772
Income tax benefit 19,149 14,815 2,956
NET INCOME 59,506 43,889 11,228
Parent Company      
Parent Company Financial Information [Line Items]      
Dividends from subsidiaries 26,000 17,000 22,000
Company owned life insurance income 184 206 141
Bargain purchase gain 0 0 8,816
TOTAL INCOME 26,184 17,206 30,957
EXPENSES      
Interest expense 6,359 5,768 4,454
Salaries and employee benefits 408 598 358
Legal and professional fees, including merger expenses 1,929 1,636 5,164
Other operating expenses 890 1,032 776
TOTAL EXPENSES 9,586 9,034 10,752
Income before income tax benefit and equity (deficit) in undistributed net income of subsidiaries 16,598 8,172 20,205
Income tax benefit (2,047) (1,678) (1,557)
Income before equity (deficit) in undistributed net income of subsidiaries 18,645 9,850 21,762
Equity (deficit) in undistributed net income of subsidiaries 40,861 34,039 (10,534)
NET INCOME $ 59,506 $ 43,889 $ 11,228
v3.25.4
Parent Company Financial Information - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ 59,506 $ 43,889 $ 11,228
Adjustments to reconcile net income to cash provided by operating activities:      
Bargain purchase gain 0 0 (8,816)
Amortization of debt issuance costs 120 122 122
Stock-based compensation expense 1,890 1,730 1,174
Company owned life insurance income (3,910) (2,657) (1,997)
Net increase in other assets (4,115) 5,027 (10,908)
Net (decrease) increase in other liabilities 7,117 (2,449) (3,653)
Net cash provided by operating activities 62,391 46,887 22,713
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of company owned life insurance (322) (210) (249)
Net cash (used in) provided by investing activities (118,322) (134,541) 172,313
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of subordinated debt, net of issuance costs 58,860 0 0
Redemption of subordinated debt (44,500) 0 0
Common stock dividends paid (16,094) (16,013) (12,733)
Issuance of common stock 82 376 385
Net cash (used in) provided by financing activities (48,354) 175,092 121,888
Net (decrease) increase in cash and cash equivalents (104,285) 87,438 316,914
Cash and cash equivalents at beginning of period 459,851 372,413 55,499
Cash and cash equivalents at end of period 355,566 459,851 372,413
Parent Company      
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income 59,506 43,889 11,228
Adjustments to reconcile net income to cash provided by operating activities:      
Equity in undistributed net income of subsidiaries (40,861) (34,039) 10,534
Bargain purchase gain 0 0 (8,816)
Amortization of debt issuance costs 119 122 122
Stock-based compensation expense 1,890 1,730 1,174
Company owned life insurance income (183) (208) (141)
Acquisition accounting adjustments 865 926 557
Net increase in other assets (2,104) (957) (1,267)
Net (decrease) increase in other liabilities (1,374) 2,284 (682)
Net cash provided by operating activities 17,858 13,747 12,709
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of company owned life insurance (309) (198) (249)
Return of subsidiary investment 500 0 0
Cash acquired in the acquisition of TCFC, net of cash paid 0 0 88
Net cash (used in) provided by investing activities 191 (198) (161)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of subordinated debt, net of issuance costs 58,860 0 0
Redemption of subordinated debt (44,500) 0 0
Common stock dividends paid (16,094) (16,013) (12,733)
Issuance of common stock 82 376 385
Net cash (used in) provided by financing activities (1,652) (15,637) (12,348)
Net (decrease) increase in cash and cash equivalents 16,397 (2,088) 200
Cash and cash equivalents at beginning of period 5,257 7,345 7,145
Cash and cash equivalents at end of period $ 21,654 $ 5,257 $ 7,345