PEOPLES FINANCIAL SERVICES CORP., 10-K filed on 3/16/2026
Annual Report
v3.26.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2025
Feb. 28, 2026
Jun. 30, 2025
Document and Entity Information      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2025    
Document Transition Report false    
Securities Act File Number 001-36388    
Entity Registrant Name Peoples Financial Services Corp.    
Entity Incorporation, State or Country Code PA    
Entity Tax Identification Number 23-2391852    
Entity Address, Address Line One 30 E D Preate Drive    
Entity Address, City or Town Moosic    
Entity Address, State or Province PA    
Entity Address, Postal Zip Code 18507    
City Area Code 570    
Local Phone Number 346-7741    
Title of 12(b) Security Common stock, $2.00 par value    
Trading Symbol PFIS    
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 [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 454,334,000
Entity Common Stock, Shares Outstanding   9,999,049  
Documents Incorporated by Reference [Text Block]

Portions of the registrant’s definitive proxy statement to be filed in connection with solicitation of proxies for its 2026 annual meeting of shareholders, within 120 days of the end of registrant’s fiscal year, are incorporated by reference into Part III of this Annual Report on Form 10-K.

   
Auditor Name Baker Tilly US, LLP    
Auditor Location Allentown, Pennsylvania    
Auditor Firm ID 23    
Entity Central Index Key 0001056943    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.26.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Cash and cash equivalents    
Cash and due from banks $ 58,420 $ 47,029
Interest-bearing deposits in other banks 9,321 8,593
Federal funds sold 201,243 80,229
Total cash and cash equivalents 268,984 135,851
Investment securities:    
Available for sale: Amortized cost of $541,707 and $575,288, respectively, net of allowance for credit losses of $0 at December 31, 2025, and December 31, 2024 512,563 526,329
Held to maturity: Fair value of $62,798 and $65,152, respectively, net of allowance for credit losses of $0 at December 31, 2025, and December 31, 2024 72,047 78,184
Equity investments carried at fair value 2,598 2,430
Total investment securities 587,208 606,943
Loans 4,066,896 3,993,505
Less: allowance for credit losses 39,007 41,776
Net loans 4,027,889 3,951,729
Loans held for sale 805  
Goodwill 75,986 75,986
Premises and equipment, net 78,496 73,283
Bank owned life insurance 88,645 87,429
Deferred tax assets 26,555 35,688
Accrued interest receivable 17,633 15,632
Intangible assets, net 27,700 34,197
Other assets 70,677 74,919
Total assets 5,270,578 5,091,657
Deposits:    
Noninterest-bearing 954,485 935,516
Interest-bearing 3,479,584 3,472,036
Total deposits 4,434,069 4,407,552
Short-term borrowings 32,721 15,900
Long-term debt 134,352 98,637
Subordinated debt 83,187 33,000
Junior subordinated debt 8,140 8,039
Accrued interest payable 6,792 5,503
Other liabilities 51,470 54,076
Total liabilities 4,750,731 4,622,707
Stockholders' equity:    
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 9,994,595, shares at December 31, 2025, and 9,990,724 shares at December 31, 2024 20,015 19,995
Capital surplus 251,023 250,695
Retained earnings 273,500 238,955
Accumulated other comprehensive loss (24,691) (40,695)
Total stockholders' equity 519,847 468,950
Total liabilities and stockholders' equity $ 5,270,578 $ 5,091,657
v3.26.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
CONSOLIDATED BALANCE SHEETS    
Available for sale, amortized cost, net of allowance $ 541,707 $ 575,288
Available for sale, allowance for credit losses 0 0
Held to maturity, Fair Value 62,798 65,152
Held-to-maturity, allowance for credit losses $ 0 $ 0
Common stock, par value (in dollars per share) $ 2 $ 2
Common stock, shares authorized (in shares) 25,000,000 25,000,000
Common stock, shares issued (in shares) 9,994,595 9,990,724
Common stock, shares outstanding(in shares) 9,994,595 9,990,724
v3.26.1
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Interest and fees on loans:      
Taxable $ 228,868 $ 184,907 $ 129,013
Tax-exempt 8,356 7,354 5,628
Interest and dividends on investment securities:      
Taxable 17,444 12,930 7,912
Tax-exempt 2,040 1,550 1,582
Dividends 160 89 4
Interest on interest-bearing deposits in other banks 405 498 335
Interest on federal funds sold 2,424 4,132 5,377
Total interest income 259,697 211,460 149,851
Interest expense:      
Interest on deposits 81,174 87,934 58,561
Interest on short-term borrowings 1,287 2,031 1,920
Interest on long-term debt 5,562 3,317 842
Interest on subordinated debt 4,967 1,774 1,774
Interest on junior subordinated debt 745 415  
Total interest expense 93,735 95,471 63,097
Net interest income 165,962 115,989 86,754
Provision for credit losses 98 19,131 566
Net interest income after provision for credit losses 165,864 96,858 86,188
Noninterest income:      
Mortgage banking income 549 389 390
Increase in cash surrender value of life insurance 2,076 1,572 1,067
Interest rate swap gain 1,107 285 390
Net gains (losses) on equity investment securities 168 132 (11)
Net (losses) gains on sale of investment securities available for sale (2,241) 1 81
Net losses on sale of fixed assets (74) (165) (3)
Total noninterest income 21,727 18,336 14,133
Noninterest expense:      
Salaries and employee benefits expense 56,341 45,746 35,285
Net occupancy and equipment expense 27,448 22,296 17,146
Acquisition related expenses 236 16,200 1,816
Amortization of intangible assets 6,397 3,367 105
Professional fees and outside services 4,970 3,269 2,810
FDIC insurance and assessments 3,288 3,158 2,131
Donations 2,406 1,825 1,619
Other expenses 14,271 10,865 6,908
Total noninterest expense 115,357 106,726 67,820
Income before income taxes 72,234 8,468 32,501
Income tax expense (benefit) 13,047 (30) 5,121
Net income 59,187 8,498 27,380
Other comprehensive income:      
Unrealized gain on investment securities available for sale 17,574 2,569 14,804
Reclassification adjustment for losses (gains) on available for sale securities included in net income 2,241 (1) (81)
Change in benefit plan liabilities 674 1,518 1,129
Change in derivative fair value (64) 632 (824)
Other comprehensive income 20,425 4,718 15,028
Income tax expense related to other comprehensive income 4,421 1,062 3,043
Other comprehensive income, net of income tax expense 16,004 3,656 11,985
Comprehensive income $ 75,191 $ 12,154 $ 39,365
Per share data:      
Basic $ 5.92 $ 1 $ 3.85
Diluted $ 5.88 $ 0.99 $ 3.83
Weighted average common shares outstanding:      
Basic 9,994,281 8,531,122 7,107,908
Diluted 10,073,996 8,586,035 7,151,471
Dividends declared $ 2.47 $ 2.06 $ 1.64
Service charges, fees, commissions and other      
Noninterest income:      
Revenue from contracts with customers $ 13,618 $ 10,838 $ 7,731
Merchant services income      
Noninterest income:      
Revenue from contracts with customers 1,299 896 693
Commission and fees on fiduciary activities      
Noninterest income:      
Revenue from contracts with customers 2,267 2,270 2,219
Wealth management income      
Noninterest income:      
Revenue from contracts with customers $ 2,958 $ 2,118 $ 1,576
v3.26.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Common Stock
Capital Surplus
Retained Earnings
Cumulative impact of adoption
Retained Earnings
Accumulated Other Comprehensive Loss
Cumulative impact of adoption
Total
Balance at Dec. 31, 2022 $ 14,321 $ 126,850 $ 2,364 $ 230,515 $ (56,336) $ 2,364 $ 315,350
Net income       27,380     27,380
Other comprehensive income, net of income tax         11,985   11,985
Cash dividends declared       (11,659)     (11,659)
Stock compensation, including tax effects and expenses   888         888
Restricted stock issued 35 (35)          
Share Retirement (263) (5,573)   (50)     (5,886)
Balance at Dec. 31, 2023 14,093 122,130   248,550 (44,351)   340,422
Net income       8,498     8,498
Other comprehensive income, net of income tax         3,656   3,656
Cash dividends declared       (18,093)     (18,093)
Stock compensation, including tax effects and expenses   786         786
Restricted stock issued 31 (31)          
Acquisition of FNCB Bancorp, Inc. 2,935,456 shares, $45.54 per share 5,871 127,810         133,681
Balance at Dec. 31, 2024 19,995 250,695   238,955 (40,695)   468,950
Net income       59,187     59,187
Other comprehensive income, net of income tax         16,004   16,004
Cash dividends declared       (24,642)     (24,642)
Stock compensation, including tax effects and expenses   348         348
Restricted stock issued 20 (20)          
Balance at Dec. 31, 2025 $ 20,015 $ 251,023   $ 273,500 $ (24,691)   $ 519,847
v3.26.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash dividends declared (in dollars per share) $ 2.47 $ 2.06 $ 1.64
Restricted stock issued, shares 10,211 15,462 17,640
Share retirement, shares     131,686
FNCB      
Common stock shares   2,935,456  
Share price (in dollars per share)   $ 45.54  
v3.26.1
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 $ 59,187 $ 8,498 $ 27,380
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation of premises and equipment 3,317 3,346 2,794
Amortization of right-of-use lease asset 807 470 598
Amortization of net deferred loan (fees) costs (62) (1,270) 694
Amortization of debt issuance costs 237    
Amortization of CDI and other intangibles 6,497 3,420 105
Amortization expense related to acquired borrowings 468 387  
Accretion income related to acquired loans (16,293) (9,108)  
Amortization expense related to acquired deposits 698 1,328  
Amortization of low income housing partnerships 1,721 472 431
Provision for credit losses 98 19,131 566
Net unrealized (gain) loss on equity investments (168) (132) 11
Net loss (gain) on sale of other real estate owned 5   (18)
Valuation allowance on other real estate 212 818  
Loans originated for sale (9,566) (3,042) (4,133)
Proceeds from sale of loans originated for sale 8,817 3,289 3,871
Net (gain) loss on sale of loans originated for sale (56) 3 12
Net (accretion) amortization of investment securities (3,355) (811) 1,005
Net loss (gain) on sale of investment securities available for sale 2,241 (1) (81)
Loss on sale of premises and equipment 74 165 3
Increase in cash surrender value of life insurance (2,076) (1,572) (1,067)
Gain from bank owned life insurance settlement (118) (172)  
Deferred income tax expense (benefit) 4,714 (3,647) 1,268
Stock compensation, including tax effects and expenses 348 786 888
Net change in:      
Accrued interest receivable (2,001) 4,550 (1,019)
Other assets 5,538 7,772 (2,085)
Accrued interest payable 1,289 (2,228) 4,862
Other liabilities (8,298) 2,273 (2,833)
Net cash provided by operating activities 54,275 34,725 33,252
Cash flows from investing activities:      
Proceeds from sales of investment securities available for sale 76,421 241,301 67,363
Proceeds from sales of equity investments   1,567  
Proceeds from repayments of investment securities:      
Available for sale 126,872 58,009 25,328
Held to maturity 6,034 6,570 6,212
Purchases of investment securities:      
Available for sale (168,495) (4,841)  
Net (purchase) redemption of restricted equity securities (2,237) (5,030) 4,450
Purchase of equity securities without readily determinable fair value (328) (802)  
Calls and maturities of equity securities without readily determinable fair value 500    
Net cash received in merger with FNCB Bancorp, Inc.   28,067  
Net (increase) decrease in loans (60,653) 61,676 (123,335)
Purchases of premises and equipment (10,934) (2,575) (5,925)
Proceeds from the sale of premises and equipment 7,392 1,807 14
Proceeds from bank owned life insurance 968 596  
Proceeds from sale of other real estate owned 22   139
Net cash (used in) provided by investing activities (24,438) 386,345 (25,754)
Cash flows from financing activities:      
Net increase (decrease) in deposits 25,819 (299,814) 232,439
Proceeds from long-term debt 76,239   25,000
Repayment of long-term borrowings (40,891) (23,287) (555)
Net increase (decrease) in proceeds from short-term borrowings 16,821 (131,390) (97,340)
Proceeds from the issuance of subordinated debt, net of issuance costs 82,950    
Repayment of subordinated debt (33,000)    
Retirement of common stock     (5,886)
Cash dividends paid (24,642) (18,093) (11,659)
Net cash provided by (used in) financing activities 103,296 (472,584) 141,999
Net increase (decrease) in cash and cash equivalents 133,133 (51,514) 149,497
Cash and cash equivalents at beginning of period 135,851 187,365 37,868
Cash and cash equivalents at end of period 268,984 135,851 187,365
Supplemental disclosures:      
Interest 92,446 95,733 58,235
Income taxes 7,564 1,854 3,462
Noncash items:      
Cumulative effect of adoption of ASC 326 on retained earnings, net of tax     2,364
Transfers of fixed assets to other real estate 433 1,529  
Transfers of loans to other real estate 750 27  
Origination of mortgage servicing rights 101 609  
Initial recognition of right-of-use assets (1) 7,097 3,084 3,878
Initial recognition of lease liability (1) 7,097 3,082 $ 3,878
Removal of right-of-use assets 795 774  
Removal of lease liability $ 806 774  
Tangible assets acquired   1,760,091  
Goodwill and other intangible assets   50,233  
Liabilities assumed   1,676,611  
FNCB      
Noncash items:      
Initial recognition of right-of-use assets (1)   3,084  
Initial recognition of lease liability (1)   $ 3,082  
v3.26.1
Summary of significant accounting policies
12 Months Ended
Dec. 31, 2025
Summary of significant accounting policies  
Summary of significant accounting policies

1. Summary of significant accounting policies:

Nature of operations:

The accompanying Consolidated Financial Statements include the accounts of Peoples Financial Services Corp. (the “Parent Company”) and its wholly-owned direct and indirect subsidiaries, including Peoples Security Bank and Trust Company (“the Bank”) and 1st Equipment Finance Inc. (“1st Equipment Finance”), collectively, the “Company” or “Peoples”. All significant intercompany balances and transactions have been eliminated in consolidation.

Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, the Bank. The Company services its retail and commercial customers through forty full-service community banking offices located within Allegheny, Bucks, Lackawanna, Lancaster, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna and Wyoming Counties of Pennsylvania, Middlesex County of New Jersey and Broome County of New York.

The Bank is a state-chartered bank and trust company under the jurisdiction of the Department of Banking and the FDIC. The Bank’s primary product is loans to small and medium-sized businesses including equipment financing and leasing. Other lending products include one-to-four family residential mortgages and consumer loans. The Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits.

The banking and financial services industries are highly competitive. The Company faces direct competition in originating loans and in attracting deposits from a significant number of financial institutions operating in its market area, many with a statewide or regional presence, and in some cases, a national presence, as well as other financial and non-financial institutions outside of its market area through online loan and deposit product offerings. Competition comes principally from other banks, savings institutions, credit unions, mortgage banking companies, internet-based financial technology (“FinTech”) companies and, with respect to deposits, institutions offering investment alternatives, including money market funds and online deposit accounts. The increased competition has resulted from changes in the legal and regulatory guidelines, as well as from economic conditions. The cost of regulatory compliance remains high for community banks as compared to their larger competitors that are able to achieve economies of scale.

Peoples Financial Services Corp. and the Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations.

Basis of presentation:

The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed Parent Company only financial information regarding the Parent Company. Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations.

Subsequent Events:

The Company has evaluated events and transactions occurring subsequent to December 31, 2025, the consolidated balance sheet date, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

On January 7, 2026, the Company purchased a property located at 111 East Market Street, Wilkes Barre, Luzerne County, Pennsylvania, for $1.4 million to relocate its current Wilkes Barre community banking office to this new location. The relocation is scheduled to be completed in the second quarter of 2026.

On January 30, 2026, the board of directors declared a dividend of $0.6250 per share for the first quarter of 2026. The dividend is payable March 13, 2026 to shareholders of record as of February 27, 2026.

On February 19, 2026, the Company executed a partial restructuring of its investment portfolio as part of its ongoing balance sheet and interest rate risk management strategy. The Company sold mortgage backed securities with an aggregate book value of approximately $31.9 million, recognizing a pre tax gain of $0.5 million. The Company intends to redeploy the proceeds by investing approximately $16.0 million into tax exempt municipal securities and allocating approximately $16.0 million to support commercial loan growth. The blended target yield on the reinvestment strategy is expected to exceed the yield on the securities sold. Management evaluated this activity and determined that it represents a non recognized subsequent event. Accordingly, no adjustments have been made to the consolidated financial statements as of and for the year ended December 31, 2025.

Estimates:

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for credit losses (“ACL”), and impairment of goodwill. Actual results could differ from those estimates.

Investment securities:

Investment securities are classified and accounted for as either held to maturity or available for sale based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held to maturity when management has the positive intent and ability to hold such securities to maturity. Held to maturity securities are stated at amortized cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available for sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Securities available for sale are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in other comprehensive income in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Generally, estimated fair values for held to maturity and available for sale investment securities are based on quoted market prices from a national pricing service. The fair value of marketable equity securities are based upon quoted market prices. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. The Company had no securities classified as trading at December 31, 2025, and 2024. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred.

Transfers of Financial Assets:

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) 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 (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Loans held for sale:

Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan.

Loans, net:

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs and any acquired premiums and discounts, less any write-downs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by the customer.

The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal, equipment financing and other related tax free loans. Retail loans consist of residential real estate and other consumer loans.

The Company makes commercial loans for real estate development and other business purposes to its customers. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer-term loans financing commercial properties. Repayment of these loans is generally dependent upon either the ongoing business cash flow from an owner-occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value ratio of not greater than 80 percent and vary in terms. In addition, the payment expectations on loans secured by income-producing properties typically depend on the successful operations of the related business and thus may be subject to a greater extent to adverse conditions in the real estate market and in the general economy.

Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans and consumer loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a

decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company manages commercial real estate credit risk by prudent underwriting with conservative debt service coverage and loan-to-value ratios at origination; lending to seasoned real estate owners/managers, frequently with personal guarantees of repayment; using reasonable appraisal practices; cross-collateralizing loans to one borrower when deemed prudent; and limiting the amount and types of construction lending. An environmental report is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled hazardous materials.

Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself.

Commercial equipment financing loans and leases consist of various equipment financing originated through the Bank's wholly-owned subsidiary, 1st Equipment Finance. The majority of the loans and leases are originated through third party dealers or equipment manufacturers located outside our primary market area. Generally, a collateral lien is placed on the collateral supporting the loan.

Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan-to-value ratio and term. Residential mortgages may have amortization terms up to 30 years.

Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans.

Off-balance sheet financial instruments:

In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an ACL for off-balance sheet financial instruments, if deemed necessary, separately as a liability. This ACL was $1.3 million and $0.9 million for the years ended December 31, 2025, and 2024 and was included in other liabilities on the consolidated balance sheets.

Nonperforming assets:

Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or

charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months.

From time to time, the Company may modify certain loans to borrowers who are experiencing financial difficulty. Interest income on these loans is recognized when earned, using the interest method. The modification categories offered can generally fall within the following categories:

Rate Modification — A modification in which the interest rate is changed to a below market rate.
Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed.
Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time.
Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above.
Combination Modification — Any other type of modification, including the use of multiple categories above.

The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows:

Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention.
Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification.
Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected.
Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be collected in the future.

Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures and bank premises that are no longer used for operations or for future expansion. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure

proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the ACL. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense.

Allowance for credit losses:

The ACL represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the consolidated balance sheet date. The measurement of expected credit losses is applicable to loans receivable, held to maturity securities measured at amortized cost and available for sale securities that the Company either intends to sell, or it is more likely than not would be required to sell, before recovery of their amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the ACL for loans is considered a critical accounting estimate by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded ACL. The ACL related to loans receivable and held to maturity debt securities is reported separately as a contra-asset on the consolidated balance sheets. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated balance sheets in other liabilities while the provision for credit losses related to unfunded commitments is reported in other noninterest expense in the consolidated statements of income and comprehensive income.

ACL on Loans Receivable:

The ACL on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected credit losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk.  Segments are based primarily on regulatory reporting codes as the loans within each segment share similar risk characteristics and there is sufficient historical peer loss data to supplement the Company’s data used in the model.  The segments include residential real estate, consumer, commercial and industrial, commercial real estate, municipal and equipment financing. The Company has identified the following pools subject to an estimate of credit loss: (1) 1-4 Family Construction; (2) Other Construction; (3) Farmland; (4) Revolving Secured by 1-4 Family; (5) Residential Secured by First Liens; (6) Residential Secured by Junior Liens; (7) Multifamily; (8) CRE Owner Occupied; (9) CRE Non-Owner Occupied; (10) Agriculture; (11) C&I; (12) Consumer; (13) Municipal and (14) Equipment Financing.

At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics.  If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the ACL when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company estimates the ACL on loans using an advanced probability of default model which incorporates probability of default, loss given default, exposure at default and probability of attrition attributes. The model considers relevant available information at both the portfolio and loan level from internal data that is supplemented by shared data pool information. The model also incorporates reasonable and supportable economic forecasts. After the reasonable and supportable forecast period, the model reverts to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications.

Also included in the ACL on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis described above. Qualitative factors that the Company considers include changes in lending policies and procedures, changes in management, changes in the quality

of the loan review process, the existence of any concentrations of credit and other external factors. In addition to these factors, the Company also considers specialty lending and the unseasoned nature of the portfolio as qualitative factors in evaluating the equipment financing loan segment. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the adverse stress credit loss scenarios using regulatory stress testing scenarios.

Individually Evaluated Loans:

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. The Company has determined that any loans currently on nonaccrual status or 90 or more days past due and still accruing are considered impaired and should be individually evaluated for losses. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will establish a reserve for the difference between the fair value of the collateral, less costs to sell and carrying costs at the reporting date and the amortized cost basis of the loan. If this amount is deemed uncollectible, the Company will charge-off that amount.

Acquired Loans:

Acquired loans are included in the Company's calculation of the ACL. The allowance recorded on an acquired loan depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an ACL at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans.

Under FASB ASC Topic 326, a PCD asset is defined as an individual financial asset that as of the date of acquisition has experienced a more than insignificant deterioration in credit quality since origination as determined during the acquisition process. Upon identification of these assets, the amortized cost basis will be adjusted at the time of acquisition to reflect any impairment amount. After acquisition, PCD loans will be either collectively evaluated for reserve requirements or individually evaluated if on nonaccrual status or are 90 or more days past due and still accruing. As of December 31, 2025, there were no acquired PCD loans included in the ACL.

ACL on Off-Balance Sheet Commitments:

The Company is required to include unfunded commitments, except those that are unconditionally cancellable, that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancellable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the ACL on off-balance sheet commitments is included in other liabilities on the consolidated balance sheets and the related credit expense is recorded in other noninterest expense in the consolidated statements of income and comprehensive income.

ACL on Held to Maturity Securities:

The Company’s portfolio of held to maturity securities consists of municipal bonds and U.S. agency residential mortgage-backed securities which are highly rated by major rating agencies and have a long history of no credit losses. In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss-based method is utilized.

ACL on Available for Sale Securities:

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses.

Accrued Interest Receivable:

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans, available for sale securities, and held to maturity securities. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the consolidated balance sheets, totaled $14.7 million and $13.2 million at December 31, 2025, and 2024, respectively and is excluded from the estimate of credit losses. Accrued interest receivable on available for sale securities and held to maturity securities, also a component of accrued interest receivable on the consolidated balance sheets, and totaled $3.0 million and $2.4 million, respectively, at December 31, 2025, and 2024 and is excluded from the estimate of credit losses, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. 

Revenue from Contracts with Customers:

The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.

The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity.

The following is a discussion of revenues within the scope of the guidance:

Service charges, fees, commissions and other. Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. The Company’s deposit services also include our ATM and debit card interchange revenue that is presented gross of the associated costs. Interchange revenue is generated by the Company’s deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions.
Commission and fees on fiduciary activities.  Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when the Company has a right to invoice and are based on either the market value of the assets managed or the services provided.
Wealth management income. Wealth management income includes fees and commissions charged when the Company arranges for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided.
Merchant services income. Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of the Company’s merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin.
Interest rate swap revenue. Interest rate swap revenue represents net fees received from a counterparty for completing loan swap transactions, which is received at the time the loan closes. Interest rate swap revenue is non-refundable, is not tied to the loan and the Company has no future obligation to the counterparty related to such fees. Accordingly, interest rate swap revenue is recorded in non-interest income upon receipt.

Premises, equipment and lease commitments:

Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, over the shorter of the useful life or the lease term.

 

Premises and leasehold improvements

  ​ ​ ​

7 – 40 years

Furniture, fixtures and equipment

 

3 – 10 years

A right-of-use asset and related lease liability is recognized on the consolidated balance sheets for operating leases the Bank has entered to lease certain office facilities. These amounts are reported as components of premises and equipment and other liabilities. Short-term operating leases, which are leases with an original term of 12 months or less and do not have a purchase option that is likely to be exercised, are not recognized as part of the right-of-use asset or lease liability. 

Goodwill and other intangible assets, net:

The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years.

Goodwill and other intangible assets are tested for impairment annually at December 31st or when circumstances arise indicating impairment may have occurred. In assessing impairment, the Company has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, the Company determines it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then the Company would not be required to perform a quantitative impairment test. At December 31, 2025, the Company completed a qualitative goodwill impairment test to determine if it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the Company is less than its carrying value, including goodwill, as described by the GAAP methodology. The Company determined a qualitative test would be performed based on the Company's market capitalization being below the Company's current book value. Additionally, the Company used an average control premium associated with acquisitions announced during the last three years and multiplied the average control premium by its market capitalization which allowed management to compare to the Company's current book value to determine if an adjustment to goodwill is warranted. Based on this analysis, management concluded it is more likely than not that the fair value of the Company, as of December 31, 2025, is higher than its carrying value, and, therefore, goodwill is not considered impaired and no further testing is required. The Company did not have any impairment of goodwill as of December 31, 2025, and 2024.

Mortgage servicing rights:

Mortgage servicing rights are recognized as a separate asset upon the sale and servicing of mortgage loans by the Company. The Company calculates a mortgage servicing right by allocating the total costs incurred between the loan sold and the servicing right, based on their relative fair values at the date of the sale. Mortgage servicing rights are included in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. In addition, mortgage servicing rights are evaluated for impairment at each reporting date based on the fair value of those rights. For purposes of measuring impairment, the rights are stratified by loan type, term and interest rate. The amount of impairment recognized, through a valuation allowance, is the amount by which the mortgage servicing rights for a stratum exceed their fair value.

Restricted equity securities:

Investments in restricted securities have limited marketability, are carried at cost and are evaluated for impairment based on the determination of the ultimate recoverability of the par value of the stock. The Company’s investment in restricted securities is comprised of stock in the FHLB and Atlantic Community Bankers Bank ("ACBB").

As a member of the FHLB, the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be redeemed by the FHLB or transferred to another member institution, and all redemptions of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. The carrying value of restricted stock is included in other assets.

Equity securities without readily determinable fair values:

Equity securities without readily determinable fair values generally include equity interests in two FinTech companies and an equity interest in an insurance company. The Company evaluates equity securities without readily determinable

fair values for impairment quarterly, or more frequently should events or circumstances indicate that their respective carrying values may not be recoverable.

Bank owned life insurance:

The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance on certain employees or directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from increases in cash surrender value of the policies is included in noninterest income. The policies can be liquidated, if necessary, with associated tax costs. However, the Company intends to hold these policies and, accordingly, the Company has not provided for income taxes on the earnings from the increase in cash surrender value.

Pension and post-retirement benefit plans:

The Company sponsors a Retirement Profit Sharing 401(k) Plan and maintains Supplemental Executive Retirement Plans (“SERPs”) and an employee pension plan, which is currently frozen. The Company also provides post-retirement benefit plans other than pensions, consisting principally of life insurance benefits, to eligible retirees. The liabilities and annual income or expense of the Company’s pension and other post-retirement benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The fair values of plan assets are determined based on prevailing market prices or estimated fair value for investments with no available quoted prices.

Cash and cash equivalents:

Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and borrowings with original maturities fewer than 90 days.

Derivative Instruments and Hedging Activities:

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets and borrowings.

The Company records all derivatives on the consolidated balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flows from these derivatives are classified in the Consolidated Statement of Cash Flows consistently with the classification of the cash flow of the hedged items. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company has elected to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Fair value of financial instruments:

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements.

Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument.

Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include:

Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Income taxes:

Deferred income taxes are provided on the balance sheet method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the effective date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for any year in the three-year period ended December 31, 2025.

As applicable, the Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various state jurisdictions. With limited exception, the Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2022.

Other comprehensive income:

The components of other comprehensive income and their related tax effects are reported in the consolidated statements of income and comprehensive income. The accumulated other comprehensive loss included in the consolidated balance sheets relates to net unrealized gains and losses on investment securities available for sale, the unrealized losses and gains on derivatives fair value and the unfunded benefit plan amounts which include prior service costs and unrealized net losses.

Earnings per share:

Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to awards of restricted stock units and are determined using the treasury stock method.

 

For the Years Ended December 31,

2025

2024

(Dollars in thousands, except per share data)

Basic  

Diluted  

Basic  

  ​ ​ ​

Diluted  

Net income

  ​ ​ ​

$

59,187

  ​ ​ ​

$

59,187

  ​ ​ ​

$

8,498

  ​ ​ ​

$

8,498

Average common shares outstanding

 

9,994,281

 

10,073,996

 

8,531,122

 

8,586,035

Earnings per share

$

5.92

$

5.88

$

1.00

$

0.99

Stock-based compensation:

The Company recognizes all share-based payments to employees in the consolidated statements of income and comprehensive income based on their fair values. The fair value of such equity instruments is recognized as an expense in the consolidated financial statements as services are performed. The Company has granted restricted stock awards and units to employees at a price equal to the fair value of the shares underlying the awards at the date of grant. The fair value of restricted stock awards and units are equivalent to the fair value on the date of grant and is amortized over the vesting period.

Subordinated debt and junior subordinated debt:

The subordinated and junior subordinated notes are recorded at par with related debt issuance costs reported as a direct reduction from the carrying amount. Issuance costs are amortized over the remaining maturity of the notes and reflected in interest expense.

Recent accounting standards:

Adoption of New Accounting Standard

Accounting Standards Update (“ASU”) 2024-01, “Compensation – Stock Compensation (Topic 718) – Scope Application of Profits Interest and Similar Awards” (ASU 2024-01) clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and therefore within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to the profits and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. ASU 2024-01 was effective January 1, 2025, including interim periods, and did not have a significant impact on the consolidated financial statements.

ASU 2024-02 “Codification Improvements” (“ASU 2024-02”) amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 was effective January 1, 2025, and did not have a significant impact on the consolidated financial statements.

ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state and foreign taxes as well as taxes paid. It also requires greater detail in the rate reconciliation of items which exceed 5 percent of pretax income. ASU 2023-09 was effective on January 1, 2025, and the Company adopted the new disclosure requirements retrospectively. The adoption of ASU 2023-09 did not have a significant impact on the consolidated financial statements, but has resulted in additional disclosures within the notes to consolidated financial statements related to income taxes. Additional information is provided in Note 19 – “Income Taxes.”

Recently Issued but Not Yet Effective Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the required effective dates. Unless otherwise discussed, management believes the impact of any recently issued standards, including those issued but not yet effective, will not have a material impact on the Company’s consolidated financial statements.

ASU 2025-01 “Income Statement Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date” (“ASU 2025-01”) clarifies the effective date of Accounting Standards Update 2024-03 “Income Statement Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”) to stipulate that ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. ASU 2024-03 will be effective for the Company beginning January 1, 2027, for the Company’s annual financial statements on Form 10-K and January 1, 2028, for the Company’s quarterly financial statements on Form 10-Q and is not expected to have a significant impact on the Company’s consolidated financial statements.

ASU 2025-08 “Financial Instruments – Credit Losses (Topic 326): Purchased Loans” (“ASU 2025-08”) expands the use of the gross up-approach in ASC 326, Credit Losses, to “purchased seasoned loans,” which the guidance defines as loans, excluding purchased financial assets with credit deterioration, credit card receivables, debt securities, and trade receivables, that are (1) acquired in a business combination or (2) obtained through a transfer that is not a business combination or initially recognized through the consolidation of a variable interest entity, if certain seasoning criteria are met. This approach was previously only applied to purchased financial assets with credit deterioration. The guidance is

effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Entities are required to apply the guidance prospectively. Early adoption is permitted. The Company is currently in the process of evaluating this guidance.

ASU 2025-09 “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements” (ASU 2025-09”) amends certain aspects of the hedge accounting guidance in ASC 815, Derivatives and Hedging, to better reflect an entity’s risk management activities in the financial statements. The amendments are effective for public business entities for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. ASU 2025-09 will be effective for the Company on January 1, 2027, and is not expected to have a significant impact on the Company’s consolidated financial statements.

v3.26.1
Business Combinations
12 Months Ended
Dec. 31, 2025
Business Combinations  
Business Combinations

2. Business Combinations:

Pursuant to the definitive Agreement and Plan of Merger dated as of September 27, 2023 between Peoples and FNCB, on July 1, 2024, FNCB merged with and into Peoples, with Peoples continuing as the surviving corporation, and immediately following the merger, FNCB Bank, a Pennsylvania-chartered bank (“FNCB Bank”), merged with and into the Bank, with the Bank as the surviving bank (collectively, the “merger”).

In connection with the completion of the merger, former FNCB shareholders received 0.1460 shares of the Company’s common stock per share of FNCB common stock. The total transaction consideration was approximately $133.7 million. The consideration included the issuance of 2,935,456 shares of the Company’s common stock, valued at $45.54 per share, which was the closing price of the Company’s common stock on June 28, 2024, the last trading day prior to the consummation of the merger. Also included in the total consideration was cash in lieu of any fractional shares, which was effectively settled upon closing.

The acquisition of FNCB was accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid are recorded at estimated fair values on the Acquisition Date. The excess consideration paid over the fair value of the net assets acquired has been reported as goodwill in the Company’s consolidated statements of financial condition. The goodwill of $12.6 million created from the merger is not amortizable or deductible for tax purposes. The amount of goodwill represents the excess of both the consideration exchanged and liabilities assumed compared to the fair market value of identifiable assets acquired. Future benefits consist largely of the synergies and economies of scale expected from combining the operations of FNCB and Peoples. Peoples has one reportable segment for GAAP; therefore, the goodwill was assigned to the whole operating company.

Costs related to the acquisition totaled $0.2 million, $16.2 million and $1.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. These amounts were expensed as incurred and are recorded as acquisition-related expenses in the consolidated statements of income and comprehensive income.

v3.26.1
Investment securities
12 Months Ended
Dec. 31, 2025
Investment securities  
Investment securities

3. Investment securities:

The amortized cost and fair value of investment securities aggregated by investment category at December 31, 2025, and December 31, 2024, are summarized below. There was no ACL recorded for available for sale or held to maturity debt securities at December 31, 2025, and 2024.

 

December 31, 2025

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

 

(Dollars in thousands)

  ​ ​ ​

Cost  

  ​ ​ ​

Gains  

  ​ ​ ​

Losses  

  ​ ​ ​

Value  

 

Available for sale:

U.S. Treasury securities

$

32,125

$

$

1,127

$

30,998

State and municipals:

Taxable

 

68,618

22

7,018

 

61,622

Tax-exempt

 

132,586

 

429

7,898

 

125,117

Residential mortgage-backed securities:

U.S. government agencies

 

42,801

 

145

247

 

42,699

U.S. government-sponsored enterprises

 

174,223

 

962

 

15,105

 

160,080

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

 

1,789

 

 

19

 

1,770

Private collateralized mortgage obligations

48,007

766

289

48,484

Asset backed securities

16,544

23

300

16,267

Corporate debt securities

24,287

829

322

24,794

Negotiable certificates of deposit

727

5

732

Total available for sale

$

541,707

$

3,181

$

32,325

$

512,563

Held to maturity:

Tax-exempt state and municipals

$

10,812

$

4

$

620

$

10,196

Residential mortgage-backed securities:

U.S. government agencies

 

12,291

 

1,977

 

10,314

U.S. government-sponsored enterprises

 

48,944

 

6,656

 

42,288

Total held to maturity

$

72,047

$

4

$

9,253

$

62,798

  ​ ​ ​

December 31, 2024

 

Gross

  ​ ​ ​

Gross

Amortized

Unrealized

Unrealized

Fair

 

(Dollars in thousands)

  ​ ​ ​

Cost  

  ​ ​ ​

Gains  

  ​ ​ ​

Losses  

  ​ ​ ​

Value  

 

Available for sale:

U.S. Treasury securities

$

176,302

$

$

8,751

$

167,551

State and municipals:

 

Taxable

 

79,341

 

39

10,481

 

68,899

Tax-exempt

 

76,390

 

7

 

10,280

 

66,117

Residential mortgage-backed securities:

U.S. government agencies

 

1,403

 

1

 

28

 

1,376

U.S. government-sponsored enterprises

 

145,831

 

92

 

19,547

 

126,376

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1,927

71

1,856

Private collateralized mortgage obligations

38,366

358

152

38,572

Asset backed securities

23,586

66

400

23,252

Corporate debt securities

31,442

894

715

31,621

Negotiable certificates of deposit

700

9

709

Total available for sale

$

575,288

$

1,466

$

50,425

$

526,329

Held to maturity:

Tax-exempt state and municipals

$

10,846

$

$

1,103

$

9,743

Residential mortgage-backed securities:

U.S. government agencies

13,847

 

2,643

 

11,204

U.S. government-sponsored enterprises

 

53,491

 

9,286

 

44,205

Total held to maturity

$

78,184

$

$

13,032

$

65,152

On December 23, 2025, the Company completed a repositioning of a portion of its investment securities portfolio. The Company sold lower-yielding, available-for-sale U.S. treasury bonds with an amortized cost of $78.6 million, a weighted average yield of 1.18% and weighted average life of approximately 1.2 years. There were no other securities sold during the year ended December 31, 2025. Proceeds received on the securities sold as part of the repositioning totaled $76.4 million. There were no gross gains realized upon the sale. The Company realized gross losses on the sale of $2.2 million, which is included in noninterest income in the consolidated statements of income and comprehensive income for the year ended December 31, 2025. The investment securities purchased as part of the repositioning consisted of $38.2 million of U.S. agency mortgage-backed securities and $37.9 million of discounted tax-exempt municipal bonds. The investment securities purchased had a weighted average yield of approximately $4.67% and duration of 10.5 years as of the date of purchase.

During the year ended December 31, 2024, the Company sold a significant portion of the available-for-sale investments acquired as part of the merger with FNCB. Proceeds received from the sales were $241.3 million, with no gains or losses realized upon sale. During the year ended December 31, 2023, the Company sold investment securities with an aggregate amortized cost of $67.3 million with total proceeds received from the sales of $67.4 million. The Company realized gross gains and losses of $319 thousand and $238 thousand, respectively on the sales, which is included in noninterest income in the consolidated statements of income and comprehensive income for the year ended December 31, 2023.

The following table summarizes the maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available for sale at December 31, 2025. Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties:

Amortized

 

Fair

(Dollars in thousands)

  ​ ​ ​

Cost

 

Value

Within one year

$

19,327

$

19,288

After one but within five years

 

61,699

 

59,180

After five but within ten years

 

66,838

 

60,978

After ten years

 

110,479

 

103,817

 

258,343

 

243,263

Mortgage-backed and other amortizing securities

 

283,364

 

269,300

Total

$

541,707

$

512,563

Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

The maturity distribution of the amortized cost and fair value, of debt securities classified as held to maturity at December 31, 2025, is summarized as follows:

 

Amortized

Fair

(Dollars in thousands)

  ​ ​ ​

Cost 

  ​ ​ ​

Value  

After one but within five years

$

4,493

$

4,121

After five but within ten years

6,319

6,075

 

10,812

 

10,196

Mortgage-backed securities

 

61,235

 

52,602

Total

$

72,047

$

62,798

Securities with a carrying value of $381.8 million and $441.5 million at December 31, 2025, and 2024, respectively, were pledged to secure public deposits and certain other deposits as required or permitted by law; and pledged to the Discount Window at the Federal Reserve.

Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At December 31, 2025, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. government agencies and sponsored enterprises, which exceeded 10.0 percent of stockholders’ equity.

The fair value and gross unrealized losses of investment securities with unrealized losses at December 31, 2025, and December 31, 2024, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows:

 

December 31, 2025

Less than
Twelve Months

Twelve Months
or Longer

Total

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

(Dollars in thousands)

Position

Fair Value

Losses

Position

Fair Value

Losses

Position

Fair Value

Losses

Securities available for sale

U.S. Treasury securities

8

$

30,998

$

1,127

8

$

30,998

$

1,127

State and municipals:

Taxable

64

59,002

7,018

64

59,002

7,018

Tax-exempt

37

$

35,137

$

519

87

63,245

7,379

124

98,382

7,898

Residential mortgage-backed securities:

U.S. government agencies

6

28,689

247

6

28,689

247

U.S. government-sponsored enterprises

3

8,989

60

34

71,288

15,045

37

80,277

15,105

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1

1,770

19

1

1,770

19

Other

8

14,534

96

11

8,000

193

19

22,534

289

Asset-backed securities

3

4,884

12

2

1,888

288

5

6,772

300

Corporate debt securities

2

1,491

9

8

7,451

313

10

8,942

322

Total

59

$

93,724

$

943

215

$

243,642

$

31,382

274

$

337,366

$

32,325

Securities Held to Maturity

U.S. government-sponsored enterprises

Tax-exempt

11

$

6,641

$

620

11

$

6,641

$

620

Residential mortgage-backed securities:

U.S. government agencies

3

10,314

1,977

3

10,314

1,977

U.S. government-sponsored enterprises

8

42,288

6,656

8

42,288

6,656

Total

22

$

59,243

$

9,253

22

$

59,243

$

9,253

December 31, 2024

Less than
Twelve Months

Twelve Months
or Longer

Total

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

(Dollars in thousands)

Position

Fair Value

Losses

Position

Fair Value

Losses

Position

Fair Value

Losses

Securities available for sale

U.S. Treasury securities

38

$

167,551

$

8,751

38

$

167,551

$

8,751

State and municipals:

Taxable

2

$

1,097

$

6

64

55,712

10,475

66

56,809

10,481

Tax-exempt

6

1,874

41

91

62,329

10,239

97

64,203

10,280

Residential mortgage-backed securities:

U.S. government agencies

1

1,299

27

1

3

1

2

1,302

28

U.S. government-sponsored enterprises

29

40,886

622

31

68,732

18,925

60

109,618

19,547

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1

1,856

71

1

1,856

71

Private collateralized mortgage obligations

15

12,854

152

15

12,854

152

Asset-backed securities

2

2,659

11

1

1,939

389

3

4,598

400

Corporate debt securities

5

6,083

316

6

3,601

399

11

9,684

715

Total

60

$

66,752

$

1,175

233

$

361,723

$

49,250

293

$

428,475

$

50,425

Securities held to maturity

U.S. Government-sponsored enterprises

Tax-exempt

4

$

2,508

$

66

12

$

7,235

$

1,037

16

$

9,743

$

1,103

Residential mortgage-backed securities:

U.S. government agencies

4

11,204

2,643

4

11,204

2,643

U.S. government-sponsored enterprises

8

44,205

9,286

8

44,205

9,286

Total

4

$

2,508

$

66

24

$

62,644

$

12,966

28

$

65,152

$

13,032

Management considered whether a credit loss existed related to the investments in an unrealized loss position by determining (i) whether the decline in fair value is attributable to adverse conditions specifically related to the financial condition of the security issuer or specific conditions in an industry or geographic area; (ii) whether the credit rating of the issuer of the security has been downgraded; (iii) whether dividend or interest payments have been reduced or have not been made and (iv) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security. If the decline is judged to be due to factors related to credit, the credit loss should be recorded as an ACL with an offsetting entry to earnings. The portion of the loss related to non-credit factors are recorded in OCI.

Based on management’s assessment of the factors identified above, it was determined the fair value of all the identified investments being less than the amortized costs was primarily caused by changes in market rates and not credit quality. All interest payments have been received as scheduled, substantially all debt securities are rated above investment grade and no material downgrades announced. Because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider the unrealized loss to be credit related, thus no allowance for credit loss was recorded at December 31, 2025 or December 31, 2024.

There was no credit loss to investment securities recognized for the years ended December 31, 2025, 2024 and 2023.

Equity Securities

Equity securities totaled $2.6 million and $2.4 million at December 31, 2025, and 2024, respectively. Included in equity securities with readily determinable fair values at December 31, 2025, and 2024 were investments in the common or preferred stock of publicly traded bank holding companies and an investment in a mutual fund comprised of 1-4 family residential mortgage-backed securities collateralized by properties within the Company’s market area. Equity securities with readily determinable fair values are reported at fair value with net unrealized gains and losses recognized in the consolidated statements of income and comprehensive income.

The following is a summary of unrealized and realized gains (losses) recognized on equity investment securities during each of the years ended December 31, 2025, 2024 and 2023.

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

Net gains (losses) recognized during the period on equity securities

$

168

$

132

$

(11)

Less: net gains recognized during the period on equity securities sold during the period

 

 

157

 

Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date

$

168

$

(25)

$

(11)

Equity Securities without Readily Determinable Fair Values

At December 31, 2025, and December 31, 2024, equity securities without readily determinable fair values consisted primarily of FHLB stock totaling $12.4 million and $10.2 million, respectively. Equity securities without readily determinable fair values also included two Fin Tech investments and an investment in an insurance company totaling $4.9 million at December 31, 2025, and $4.6 million at December 31, 2024. At December 31, 2024, equity securities without readily determinable fair values also included the non-cumulative, perpetual preferred stock of a privately held bank holding company of $0.5 million, which was redeemed by the issuer at par during the year ended December 31, 2025. Equity securities without readily determinable fair values are evaluated for impairment whenever events or circumstances suggest that their carrying value may not be recoverable and are included in other assets in the consolidated balance sheets. There was no adjustments for impairment related to equity securities without readily determinable values recognized for the years ended December 31, 2025, 2024 and 2023.

v3.26.1
Loans, net and allowance for credit losses
12 Months Ended
Dec. 31, 2025
Loans, net and allowance for credit losses  
Loans, net and allowance for credit losses

4. Loans, net and allowance for credit losses:

The major classifications of loans outstanding, net of deferred loan origination fees and costs at December 31, 2025, and 2024 are summarized as follows. Net deferred loan fees of $1.9 million and $1.1 million are included in loan balances at December 31, 2025, and 2024, respectively. Unearned income was $1.5 million at December 31, 2025, and $1.3 million at December 31, 2024.

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

Commercial and industrial

$

667,948

$

648,102

Municipal

202,303

187,918

Real estate

Commercial

2,314,110

 

2,294,113

Residential

602,309

 

551,383

Total

2,916,419

2,845,496

Consumer

Indirect auto

93,742

117,914

Consumer other

17,496

 

14,955

Total

111,238

132,869

Equipment financing

168,988

179,120

Total

$

4,066,896

$

3,993,505

At December 31, 2025, the majority of the Company’s loans were at least partially secured by real estate in the markets we operate in. Therefore, a primary concentration of credit risk is directly related to the real estate market in these regions. Changes in the general economy, local economy or in the real estate market could affect the ultimate collectability of this portion of the loan portfolio. Management does not believe there are any other significant concentrations of credit risk that could affect the loan portfolio.

Loans are pledged to the FHLB and the FRB as collateral for borrowing lines of credit as part of our contingent liquidity strategy. At December 31, 2025, $2.4 billion was pledged to the FHLB providing $1.7 billion in borrowing capacity and $482.8 million was pledged to the FRB’s Borrow-in-Custody program providing $339.4 million in borrowing capacity.

Past Due Loans

The major classification of loans by past due status at December 31, 2025, and 2024 are summarized as follows:

  ​ ​ ​

December 31, 2025

 

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Greater

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Loans > 90

 

30-59 Days

60-89 Days

than 90

Total Past

Days and

 

(Dollars in thousands)

Past Due  

Past Due  

Days  

Due  

Current  

Total Loans  

Accruing  

 

Commercial and industrial

$

1,090

$

147

$

1,827

$

3,064

$

664,884

$

667,948

$

Municipal

202,303

202,303

Real estate:

Commercial

 

3,943

1,459

 

3,550

 

8,952

 

2,305,158

 

2,314,110

Residential

 

2,948

1,413

1,748

 

6,109

 

596,200

 

602,309

524

Consumer

 

2,527

500

 

776

 

3,803

 

107,435

 

111,238

 

Equipment financing

733

747

495

1,975

167,013

168,988

Total

$

11,241

$

4,266

$

8,396

$

23,903

$

4,042,993

$

4,066,896

$

524

  ​ ​ ​

December 31, 2024

 

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Greater

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Loans > 90

 

30-59 Days

60-89 Days

than 90

Total Past

Days and

 

(Dollars in thousands)

Past Due  

Past Due  

Days  

Due  

Current  

Total Loans  

Accruing  

 

Commercial and industrial

$

2,740

$

157

$

838

$

3,735

$

644,367

$

648,102

$

Municipal

187,918

187,918

Real estate:

Commercial

 

2,800

141

 

11,164

 

14,105

 

2,280,008

 

2,294,113

Residential

 

2,390

 

997

 

2,477

 

5,864

 

545,519

 

551,383

403

Consumer

 

2,393

 

539

 

492

 

3,424

 

129,445

 

132,869

 

55

Equipment financing

639

1,259

815

2,713

176,407

179,120

Total

$

10,962

$

3,093

$

15,786

$

29,841

$

3,963,664

$

3,993,505

$

458

The amount of residential loans in the formal process of foreclosure totaled $0.6 million at December 31, 2025, and $0.2 million at December 31, 2024.

Nonaccrual Loans

The following tables present the Company’s nonaccrual loans at December 31, 2025, and December 31, 2024.

December 31, 2025

Total

Nonaccrual with

Nonaccrual with

Nonaccrual

an Allowance for

no Allowance for

(Dollars in thousands)

  ​ ​ ​

Loans

Credit Losses

Credit Losses

Commercial and industrial

$

1,955

$

1,016

$

939

Municipal

Real estate:

Commercial

 

4,152

 

1,178

 

2,974

Residential

 

2,511

 

67

 

2,444

Consumer

 

1,048

 

 

1,048

Equipment financing

1,130

828

302

Total

$

10,796

$

3,089

$

7,707

December 31, 2024

Total

Nonaccrual with

Nonaccrual with

Nonaccrual

an Allowance for

no Allowance for

(Dollars in thousands)

  ​ ​ ​

Loans

Credit Losses

Credit Losses

Commercial and industrial

$

1,907

$

343

$

1,564

Municipal

Real estate:

Commercial

 

15,609

 

2,574

 

13,035

Residential

 

2,809

 

 

2,809

Consumer

 

744

 

 

744

Equipment financing

1,430

819

611

Total

$

22,499

$

3,736

$

18,763

Interest income recorded on nonaccrual loans for the year ended December 31, 2025, was $0.7 million and $1.1 million for the year ended December 31, 2024.

Credit Quality Indicators

The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system.

The following tables present the amortized cost of loans and gross charge-offs by year of origination and by major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at December 31, 2025, and 2024:

As of December 31, 2025

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

Prior

  ​ ​ ​

Revolving Loans Amortized Cost Basis

  ​ ​ ​

Revolving Loans Converted to Term

  ​ ​ ​

Total

Commercial and industrial

Pass

$

81,246

$

69,710

$

57,789

$

53,915

$

38,907

$

94,729

$

251,834

$

100

$

648,230

Special mention

 

300

572

2,725

36

9

8,718

 

12,360

Substandard

 

111

400

579

664

30

5,574

7,358

Total commercial

 

81,546

 

70,393

 

58,189

 

57,219

 

39,607

 

94,768

 

266,126

 

100

 

667,948

Municipal

Pass

23,125

4,324

1,354

45,369

88,165

38,331

1,635

 

202,303

Special mention

 

Substandard

 

Total municipal

23,125

 

4,324

 

1,354

 

45,369

 

88,165

 

38,331

 

1,635

 

 

202,303

Commercial real estate

Pass

359,323

146,483

175,145

566,480

441,660

586,189

71

 

2,275,351

Special mention

573

1,508

2,174

9,149

 

13,404

Substandard

542

508

1,217

7,841

6,870

8,377

 

25,355

Total commercial real estate

360,438

146,991

176,362

575,829

450,704

603,715

71

2,314,110

Residential real estate

Pass

56,021

38,109

40,913

66,927

104,534

148,121

146,380

 

601,005

Special mention

Substandard

258

869

177

 

1,304

Total residential real estate

56,021

 

38,109

 

40,913

 

66,927

 

104,792

 

148,990

 

146,557

 

 

602,309

Consumer

Pass

25,443

19,746

24,017

21,716

9,574

3,153

6,493

 

110,142

Special mention

Substandard

158

161

137

338

177

113

12

 

1,096

Total consumer

 

25,601

 

19,907

 

24,154

 

22,054

 

9,751

 

3,266

 

6,505

 

 

111,238

Equipment financing

Pass

50,357

51,024

43,364

21,050

724

166,519

Special mention

129

12

141

Substandard

287

664

691

686

2,328

Total equipment financing

50,644

51,688

44,184

21,748

724

168,988

Total Loans

$

597,375

$

331,412

$

345,156

$

789,146

$

693,743

$

889,070

$

420,823

$

171

$

4,066,896

Gross charge-offs

Commercial and industrial

$

$

300

$

$

24

$

57

$

493

$

$

$

874

Municipal

Commercial real estate

853

95

948

Residential real estate

92

92

Consumer

195

361

342

116

55

1,069

Equipment financing

210

201

778

661

1,850

Total Gross charge-offs

$

210

$

696

$

1,139

$

1,972

$

173

$

643

$

$

$

4,833

As of December 31, 2024

(Dollars in thousands)

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

2020

  ​ ​ ​

Prior

  ​ ​ ​

Revolving Loans Amortized Cost Basis

  ​ ​ ​

Revolving Loans Converted to Term

  ​ ​ ​

Total

Commercial and industrial

Pass

$

61,657

$

69,329

$

83,123

$

64,488

$

29,950

$

91,906

$

199,737

$

68

$

600,258

Special mention

 

1,273

1,131

686

13,475

2,043

1,261

16,840

 

36,709

Substandard

 

300

854

904

85

597

8,395

11,135

Total commercial

 

62,930

 

70,760

 

84,663

 

78,867

 

32,078

 

93,764

 

224,972

 

68

 

648,102

Municipal

Pass

5,072

6,254

50,886

99,064

9,932

13,816

2,894

 

187,918

Special mention

 

Substandard

 

Total municipal

5,072

 

6,254

 

50,886

 

99,064

 

9,932

 

13,816

 

2,894

 

 

187,918

Commercial real estate

Pass

161,186

196,779

651,254

525,233

156,970

538,905

 

2,230,327

Special mention

1,231

46

2,724

4,361

1,635

24,951

 

34,948

Substandard

3,276

8,883

1,106

1,704

13,869

 

28,838

Total commercial real estate

162,417

200,101

662,861

530,700

160,309

577,725

2,294,113

Residential real estate

Pass

39,488

45,172

77,862

123,154

50,831

106,877

105,867

67

 

549,318

Special mention

 

Substandard

126

296

1,565

78

 

2,065

Total residential real estate

39,488

 

45,172

 

77,862

 

123,280

 

51,127

 

108,442

 

105,945

 

67

 

551,383

Consumer

Pass

28,872

38,223

38,668

18,963

4,132

2,495

853

 

132,206

Special mention

 

Substandard

65

156

209

124

43

64

2

 

663

Total consumer

 

28,937

 

38,379

 

38,877

 

19,087

 

4,175

 

2,559

 

855

 

 

132,869

Equipment financing

Pass

67,100

66,341

39,323

4,259

177,023

Special mention

261

125

386

Substandard

697

1,014

1,711

Total equipment financing

67,100

67,299

40,462

4,259

179,120

Total Loans

$

365,944

$

427,965

$

955,611

$

855,257

$

257,621

$

796,306

$

334,666

$

135

$

3,993,505

Gross charge-offs

Commercial and industrial

$

$

41

$

$

2

$

$

8

$

$

$

51

Municipal

Commercial real estate

282

282

Residential real estate

Consumer

90

245

255

183

32

87

892

Equipment Financing

551

109

660

Total gross charge-offs

$

90

$

837

$

364

$

185

$

32

$

377

$

$

$

1,885

Modifications to Borrowers Experiencing Financial Difficulty

The following presents, by class of loans, information regarding modified loans to borrowers experiencing financial difficulty during the years ended December 31, 2025, and 2024.

Other-Than-Insignificant Payment Delay

For the Years Ended December 31, 

2025

2024

Number
of

Amortized Cost

% of Total Class of Financing

Related

Number
of

Amortized Cost

% of Total Class of Financing

Related

(Dollars in thousands)

Loans

Basis

Receivable

Reserve

Loans

Basis

Receivable

Reserve

Modified Loans to Borrowers Experiencing Financial Difficulty:

Commercial and industrial

3

$

407

0.06%

$

0

1

$

408

0.06%

$

Total

3

$

407

$

0

1

$

408

$

The following presents, by class of loans, information regarding the financial effect on modified loans to borrowers experiencing financial difficulty during the year ended December 31, 2025.

Other-Than-Insignificant Payment Delay

(Dollars in thousands)

No. of Loans

Balance

Financial Effect

For the Year Ended December 31, 2025

Modified Loans to Borrowers Experiencing Financial Difficulty:

Commercial and industrial

1

$

46

Extended term to reduce payment

Commercial and industrial

2

361

Converted to interest only for a fixed time period

Total

3

$

407

The following presents, by class of loans, the amortized cost and performance status of nonaccrual modified loans to borrowers experiencing financial difficulty that have been modified in the last 12 months as of December 31, 2025.

As of December 31, 2025

(Dollars in thousands)

Current

30-89 Days Past Due

90 Days or More Past Due

Total

Modified Loans to Borrowers Experiencing Financial Difficulty:

Commercial and industrial

$

$165

$

$

242

$

407

Total

$

165

$

$

242

$

407

One loan, in the amount of $242 thousand, is currently in default.

Allowance for Credit Losses

ACL on loans receivable

The following tables present the balance of the ACL at December 31, 2025, 2024 and 2023. The tables identify the valuation allowances attributable to specifically identified impairments on individually evaluated loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans evaluated collectively. The tables include the underlying balance of loans receivable applicable to each category as of those dates. The following tables represent the ACL by major classification of loan and whether the loans were individually or collectively evaluated and collateral dependent by class of loans at December 31, 2025, 2024 and 2023.

  ​ ​ ​

December 31, 2025

Real estate  

Equipment

(Dollars in thousands)

Commercial  

Municipal

Commercial  

Residential  

Consumer 

Financing

Total

Allowance for credit losses:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Beginning balance

$

6,004

$

1,072

$

21,804

$

4,924

$

2,540

$

5,432

$

41,776

Charge-offs

 

(874)

 

 

(948)

 

(92)

 

(1,069)

 

(1,850)

(4,833)

Recoveries

 

333

 

 

682

 

86

 

475

 

390

1,966

Provisions (Credits)

 

573

 

341

 

(1,540)

 

45

 

(187)

 

866

98

Ending balance

$

6,036

$

1,413

$

19,998

$

4,963

$

1,759

$

4,838

$

39,007

Ending balance: individually evaluated for impairment

 

404

 

 

451

 

78

 

 

399

1,332

Ending balance: collectively evaluated for impairment

$

5,632

$

1,413

$

19,547

$

4,885

$

1,759

$

4,439

$

37,675

Loans receivable:

Ending balance

$

667,948

$

202,303

$

2,314,110

$

602,309

$

111,238

$

168,988

$

4,066,896

Individually evaluated - collateral dependent - real estate

 

1,470

 

 

4,056

 

3,039

8,565

Individually evaluated - collateral dependent - non-real estate

485

1,153

1,638

Collectively evaluated for impairment

$

665,993

$

202,303

$

2,310,054

$

599,270

$

111,238

$

167,835

$

4,056,693

December 31, 2024

Real estate  

Equipment

 

(Dollars in thousands)

  ​ ​

Commercial 

  ​ ​

Municipal

  ​ ​

Commercial  

  ​ ​

Residential  

  ​ ​

Consumer  

  ​ ​

Financing

Total

Allowance for credit losses:

  ​ ​ ​

Beginning balance

$

2,272

$

788

$

14,153

$

3,782

$

900

$

$

21,895

Non PCD allowance for credit losses at acquisition

2,259

502

4,149

1,785

1,470

4,163

14,328

PCD allowance for credit losses at acquisition

337

71

371

468

320

274

1,841

Charge-offs

 

(51)

 

 

(282)

 

 

(892)

 

(660)

(1,885)

Recoveries

 

90

 

 

69

 

16

 

478

 

141

794

Provisions (Credits)

 

1,097

 

(289)

 

3,344

 

(1,127)

 

264

 

1,514

4,803

Ending balance

$

6,004

$

1,072

$

21,804

$

4,924

$

2,540

$

5,432

$

41,776

Ending balance: individually evaluated for impairment

 

325

 

 

190

 

 

 

434

949

Ending balance: collectively evaluated for impairment

$

5,679

$

1,072

$

21,614

$

4,924

$

2,540

$

4,998

$

40,827

Loans receivable:

Ending balance

$

648,102

$

187,918

$

2,294,113

$

551,383

$

132,869

$

179,120

$

3,993,505

Individually evaluated - collateral dependent - real estate

 

906

 

 

15,326

 

3,212

 

19,444

Individually evaluated - collateral dependent - non-real estate

1,007

284

1,429

2,720

Collectively evaluated for impairment

$

646,189

$

187,918

$

2,278,503

$

548,171

$

132,869

$

177,691

$

3,971,341

*See Note 2 - Business Combination and the initial provision for non-PCD loans.

December 31, 2023

Real estate  

(Dollars in thousands)

  ​ ​

Commercial  

  ​ ​

Municipal

  ​ ​

Commercial  

  ​ ​

Residential  

  ​ ​

Consumer  

  ​ ​

Total

Allowance for loan losses:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Beginning balance

$

4,365

$

1,247

$

17,915

$

3,072

$

873

$

27,472

Impact of adopting ASC 326

(1,683)

747

(3,344)

967

30

(3,283)

Beginning balance

2,682

1,994

14,571

4,039

903

24,189

Charge-offs

 

(58)

 

 

(2,598)

 

 

(369)

 

(3,025)

Recoveries

 

11

 

 

1

 

24

 

129

 

165

(Credits) provisions

 

(363)

 

(1,206)

 

2,179

 

(281)

 

237

 

566

Ending balance

$

2,272

$

788

$

14,153

$

3,782

$

900

$

21,895

Ending balance: individually evaluated for impairment

 

10

 

 

 

21

 

 

31

Ending balance: collectively evaluated for impairment

$

2,262

$

788

$

14,153

$

3,761

$

900

$

21,864

Loans receivable:

Ending balance

$

368,411

$

175,304

$

1,863,118

$

360,803

$

82,261

$

2,849,897

Individually evaluated - collateral dependent - real estate

7

 

2,974

 

1,749

 

4,730

Individually evaluated - collateral dependent - non-real estate

$

10

$

$

$

$

$

10

Collectively evaluated for impairment

$

368,394

$

175,304

$

1,860,144

$

359,054

$

82,261

$

2,845,157

ACL on off balance sheet commitments

The following table presents the activity in the ACL on off balance sheet commitments, which include commitments to extend credit, unused portions of lines of credit and standby letters of credit, for the years ended December 31, 2025, 2024 and 2023. The ACL on off balance sheet commitments is included in other liabilities on the consolidated balance sheets and the related credit expense is recorded in other noninterest expense in the consolidated statements of income and comprehensive income.

(Dollars in thousands)

December 31, 2025

December 31, 2024

December 31, 2023

Beginning balance

$

880

$

43

$

179

Impact of adopting Topic 326

270

Merger related adjustments

880

Charge-off

(1)

Provision for (credit to) credit losses recorded in noninterest expense

426

(43)

(406)

Total allowance for credit losses on off balance sheet commitments

$

1,305

$

880

$

43

v3.26.1
Related party transactions
12 Months Ended
Dec. 31, 2025
Related party transactions  
Related party transactions

5. Related party transactions

In conducting its business, Peoples has engaged in and intends to continue to engage in banking and financial transactions with directors, executive officers and their related parties. Additions, new loans and advances during the year ended December 31, 2024 include those acquired as part of the FNCB merger.

The Bank has granted loans, letters of credit and lines of credit to directors, executive officers and their related parties. All such loans were made in the ordinary course of business, on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to the Company or the Bank and did not involve more than the normal risk of collectability or present other unfavorable features.

The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit, net of any participations sold, as well as repayments during the year ended December 31, 2025, and 2024.

Year Ended December 31, 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

Balance, beginning of period

$

130,563

$

3,105

Additions, new loans and advances

30,989

128,916

Repayments and other reductions

(22,178)

(1,458)

Balance, end of period

$

139,374

130,563

At December 31, 2025, and December 31, 2024, there were no loans to directors, executive officers and their related parties that were not performing in accordance with the original terms of the loan agreements.

Deposits from directors, executive officers and their related parties held by the Bank at December 31, 2025, and December 31, 2024, were $161.5 million and $132.0 million, respectively.

The aggregate principal amount of the Company’s Subordinated Notes due 2030 held by directors, executive officers and their related parties was $3.0 million at December 31, 2024, which were redeemed in full by the Company on June 30, 2025. There were no Subordinated Notes issued by the Company that were held by directors, executive officers or their related parties at December 31, 2025.

In the course of its operations, the Bank acquires goods and services from, and transacts business with, various companies of related parties, which include, but are not limited to legal services, rent, billboard advertising, vehicle

repair services and dealer reserve payments. The Bank recorded payments to related parties for goods and services of $177 thousand, $117 thousand and $8 thousand for the years ending December 31, 2025, 2024 and 2023, respectively.

On December 4, 2025, the Company sold two buildings, five parking lots and a piece of vacant land that were part of FNCB’s former corporate campus located in Dunmore, Pennsylvania to a related party for $3.7 million. The properties had an aggregate net book value of $4.3 million, and the Company recognized a loss of $0.6 million on the sale, which is included in net losses on the sale of fixed assets in the consolidated statements of income and comprehensive income.

v3.26.1
Off-balance sheet financial instruments
12 Months Ended
Dec. 31, 2025
Off-balance sheet financial instruments  
Off-balance sheet financial instruments

6. Off-balance sheet financial instruments:

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused portions of lines of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, unused portions of lines of credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company follows the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. In order to provide for credit losses inherent in these instruments, the Company recorded reserves for unfunded commitments of $1.3 million at December 31, 2025, and $0.9 million at December 31, 2024, which were included in other liabilities in the consolidated balance sheets.

The contractual amounts of off-balance sheet commitments at December 31, 2025, and 2024 are summarized as follows:

 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Commitments to extend credit

$

660,353

$

589,725

Unused portions of lines of credit

 

178,689

 

150,840

Standby letters of credit

 

54,970

 

60,353

$

894,012

$

800,918

 

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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment.

Unused portions of lines of credit, including home equity and overdraft protection agreements, are commitments for possible future extensions of credit to existing customers. Unused portions of home equity lines are collateralized and generally have fixed expiration dates. Overdraft protection agreements are uncollateralized and usually do not carry specific maturity dates. Unused portions of lines of credit ultimately may not be drawn upon to the total extent to which the Company is committed.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit expire within twelve months. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending other loan commitments. The Company requires collateral supporting these standby letters of credit as deemed necessary. The amount of letters of credit secured with collateral is $47.2 million at December 31, 2025, and $57.2 million at December 31, 2024.

v3.26.1
Premises and equipment, net
12 Months Ended
Dec. 31, 2025
Premises and equipment, net  
Premises and equipment, net

7. Premises and equipment, net:

Premises and equipment at December 31, 2025, and 2024 are summarized as follows:

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Land

$

6,976

$

8,850

Premises and leasehold improvements

 

68,692

 

74,938

Right-of-use assets

17,797

12,302

Furniture, fixtures and equipment

 

32,894

 

30,237

Gross premises and equipment

 

126,359

 

126,327

Less: accumulated depreciation

 

47,863

 

53,044

Net premises and equipment

$

78,496

$

73,283

Depreciation and amortization expense of premises and equipment amounted to $3.3 million in 2025, $3.3 million in 2024 and $2.8 million in 2023.

On January 17, 2025, the Company executed a sale/leaseback of its former corporate headquarters in Scranton, Pennsylvania. The new lease has been classified as an operating lease. The net proceeds from the sale were $3.6 million and resulted in a pre-tax gain of $0.6 million that is included in net losses on the sale of fixed assets in the consolidated statements of income and comprehensive income.

On February 28, 2025, the Company executed a lease for a new corporate headquarters located at 30 E D Preate Drive, Moosic, Pennsylvania. The lease has a fifteen-year term expiring March 31, 2040, with two five-year renewal options. Subsequently, on June 23, 2025, the Bank entered into a Purchase and Sale Agreement (the “Agreement”) to purchase this property. The purchase price for the property is $19.5 million, subject to customary adjustments, prorations and credits as outlined in the Agreement. In addition to the purchase price, the Bank has paid the seller $3.0 million for certain repairs and improvements to the property and $500 thousand for certain office fit out costs. The closing on the property is anticipated for the second quarter of 2026 and no later than June 30, 2026. As a result of the purchase and sale agreement, the lease was modified and the remaining lease term was reduced to 12 months, which meets the definition of a short-term lease under ASC 842. Future lease payments will be recognized as lease expenses on a straight-line basis over the remaining term. The Bank has relocated its corporate headquarters and executive offices, as well as a majority of its administrative and operational units to the new facility and is currently leasing a portion of the property until the purchase closes. At closing, any and all leases for the property will be assigned to and assumed by the Bank.

On December 4, 2025, the Company sold two buildings, five parking lots and a piece of vacant land that were part of FNCB’s former corporate campus located in Dunmore, Pennsylvania for $3.7 million. The properties had an aggregate net book value of $4.3 million, and the Company recognized a loss of $0.6 million on the sale, which is included in net losses on the sale of fixed assets in the consolidated statements of income and comprehensive income.

 

v3.26.1
Operating lease commitments and contingencies
12 Months Ended
Dec. 31, 2025
Operating lease commitments and contingencies  
Operating lease commitments and contingencies

8. Operating lease commitments and contingencies:

The Company is obligated under non-cancellable operating leases for certain branch locations. At lease inception, the Company determines whether a contract contains a lease by assessing whether the arrangement conveys the right to control the use of an identified asset in exchange for consideration. For leases with original terms greater than 12 months, the Company recognizes a right-of-use (“ROU”) asset and a corresponding lease liability at the lease commencement date.

ROU assets for operating leases are included in premises and equipment, and lease liabilities are included in other liabilities in the consolidated balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term.

Certain leases contain renewal options, generally in five-year increments. Renewal periods that are reasonably certain of being exercised are included in the lease term. On December 31, 2025, the Company’s leases had a weighted‑average remaining lease term of 21.3 years and 15.8 years at December 31, 2024. The discount rate used to measure lease liabilities is the Company’s incremental borrowing rate, determined by using the Federal Home Loan Bank fixed‑advance rate for terms corresponding to the term of each lease on its commencement date. At December 31, 2025, and December 31, 2024, discount rates ranged from 1.60 percent to 5.86 percent and from 1.60 percent to 5.25 percent with an average discount rate of 4.50 percent and 3.57 percent respectively.

At December 31, 2025, the Company’s operating lease ROU assets were $17.8 million and operating lease liabilities were $18.4 million. On December 31, 2024, operating lease ROU assets totaled $12.3 million and corresponding lease liabilities totaled $12.7 million. Rent expense for the years ended December 31, 2025, 2024, and 2023 was $2.2 million, $1.2 million, and $1.0 million, respectively, and is included in occupancy expenses. The Company entered into lease agreements for four branches and recorded aggregate right of use assets and corresponding lease liabilities of $7.1 million during the year ended December 31, 2025.

Future minimum lease payments under operating leases are summarized as follows:

(Dollars in thousands)

2026

  ​ ​ ​

$

1,515

2027

 

1,448

2028

 

1,458

2029

 

1,416

2030

 

1,331

Thereafter

 

23,076

Total future minimum lease payments

30,244

Less amount representing interest

(11,805)

Present value of future minimum lease payments

$

18,439

 

v3.26.1
Goodwill and other intangibles
12 Months Ended
Dec. 31, 2025
Goodwill and other intangibles  
Goodwill and other intangibles

9. Goodwill and other intangibles:

The following table provides information on the significant components of goodwill and other acquired intangible assets at December 31, 2025, and December 31, 2024

December 31, 2025

Accumulated

Beginning

Impairment

Accumulated

Ending

(Dollars in thousands)

  ​ ​ ​

Balance

  ​ ​ ​

Additions

  ​ ​ ​

Charges

  ​ ​ ​

Amortization(1)

  ​ ​ ​

Balance

Goodwill

$

75,986

$

$

$

$

75,986

Total goodwill

$

75,986

$

$

$

$

75,986

Core deposit intangible

$

33,299

$

$

$

6,327

$

26,972

Wealth management customer list intangible

898

170

728

Total intangible assets, net

$

34,197

$

$

$

6,497

$

27,700

December 31, 2024

Accumulated

Beginning

Impairment

Year-to-Date

Ending

(Dollars in thousands)

Balance

Additions

Charges

Amortization(1)

Balance

Goodwill

$

63,370

$

12,616

$

$

$

75,986

Total goodwill

$

63,370

$

12,616

$

$

$

75,986

Core deposit intangible

$

$

36,629

$

$

3,330

$

33,299

Wealth management customer list intangible

988

90

898

Total intangible assets, net

$

$

37,617

$

$

3,420

$

34,197

(1)Core deposit intangible amortization is included in amortization of intangible assets in the consolidated statements of income and comprehensive income. Wealth management customer list intangible amortization is included in wealth management income on the consolidated statements of income and comprehensive income.

The aggregate amortization expense was $6.5 million, $3.4 million and $0.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.

At December 31, 2025, estimated future remaining amortization of the core deposit intangible and wealth management customer list intangible within the years ending December 31, are as follows:

(Dollars in thousands)

  ​ ​ ​

Core Deposit Intangible

Wealth Management Customer List Intangible

Total

2026

$

5,661

$

153

$

5,814

2027

 

4,995

135

 

5,130

2028

 

4,329

 

117

 

4,446

2029

 

3,663

 

99

 

3,762

2030

2,997

81

3,078

Thereafter

 

5,327

 

143

 

5,470

Total amortizing intangible

$

26,972

$

728

$

27,700

v3.26.1
Other assets
12 Months Ended
Dec. 31, 2025
Other assets  
Other assets

10. Other assets:

The major components of other assets at December 31, 2025, and 2024 are summarized as follows:

 

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

Other real estate owned

$

1,682

$

738

Mortgage servicing rights (1)

 

1,211

 

1,304

Prepaid shares tax

 

253

 

1,304

Equity investments without readily determinable fair value

4,908

5,080

Prepaid pension

 

7,096

 

5,788

Prepaid expenses

7,813

7,031

Restricted equity securities (FHLB and ACBB)

12,457

10,220

Investment in low income housing partnerships

 

15,454

 

17,886

Interest rate swaps(2)

15,583

20,537

Other assets

4,220

5,031

Total

$

70,677

$

74,919

(1) The Company originates one-to-four family residential mortgage loans for sale in the secondary market with servicing rights retained. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $174.3 million at December 31, 2025, and $185.2 million at December 31, 2024.
(2)The balance of interest rate swaps represents the fair value of our commercial loan back-to-back swaps.
v3.26.1
Deposits
12 Months Ended
Dec. 31, 2025
Deposits  
Deposits

11. Deposits:

The major components of interest-bearing and noninterest-bearing deposits at December 31, 2025, and 2024 are summarized as follows:

 

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

Interest-bearing deposits:

Money market accounts

$

989,230

$

936,239

Interest-bearing demand and NOW accounts

 

1,285,767

 

1,238,853

Savings accounts

 

497,523

 

492,180

Time deposits less than $250

 

477,115

 

620,725

Time deposits $250 or more

 

229,949

 

184,039

Total interest-bearing deposits

 

3,479,584

 

3,472,036

Noninterest-bearing deposits

 

954,485

 

935,516

Total deposits

$

4,434,069

$

4,407,552

The aggregate amounts of maturities for all time deposits at December 31, 2025, are summarized as follows:

 

(Dollars in thousands)

  ​ ​ ​

2026

  ​ ​ ​

$

628,519

2027

 

47,131

2028

 

16,951

2029

 

6,603

2030

 

6,893

Thereafter

 

967

$

707,064

Time deposits less than $250 thousand included brokered deposits of $152.3 million at December 31, 2025, and $256.6 million at December 31, 2024.

The aggregate amount of deposits reclassified as loans was $0.9 million at December 31, 2025, and $0.7 million at December 31, 2024. Management evaluates transaction accounts that are overdrawn for collectability as part of its evaluation for credit losses.

v3.26.1
Short-term borrowings
12 Months Ended
Dec. 31, 2025
Short-term borrowings  
Short-term borrowings

12. Short-term borrowings:

Short-term borrowings consisted of FHLB overnight advances or advances with stated original terms of less than twelve months, and other borrowings related to collateral held from derivative counterparties:

 

At and for the year ended December 31, 2025

Weighted

Weighted

 

Maximum

Average

Average

 

Ending

Average

Month-End

Rate for

Rate at End

 

(Dollars in thousands, except percents)

  ​ ​ ​

Balance 

  ​ ​ ​

Balance 

  ​ ​ ​

Balance 

  ​ ​ ​

the Year

  ​ ​ ​

of the Year

 

FHLB advances - Overnight

  ​ ​ ​

$

23,761

  ​ ​ ​

$

16,452

  ​ ​ ​

$

65,350

  ​ ​ ​

4.44

%  

3.76

%

Other borrowings

8,960

12,789

18,160

 

4.35

3.67

Total short-term borrowings

$

32,721

$

29,241

$

83,510

 

4.40

%  

3.74

%

At and for the year ended December 31, 2024

 

Weighted

Weighted

 

Maximum

Average

Average

 

Ending

Average

Month-End

Rate for

Rate at End

 

(Dollars in thousands, except percents)

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

the Year

  ​ ​ ​

of the Year

 

FHLB advances - Overnight

$

$

6,733

$

83,900

 

5.53

%

%

Federal Reserve Bank - BTFP

12,352

24,968

5.73

Other borrowings

15,900

18,035

25,050

5.27

4.34

Total short-term borrowings

$

15,900

$

37,120

$

133,918

5.48

%

4.34

%

At and for the year ended December 31, 2023

 

Weighted

Weighted

 

Maximum

Average

Average

 

Ending

Average

Month-End

Rate for

Rate at End

 

(Dollars in thousands, except percents)

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

the Year

  ​ ​ ​

of the Year

 

FHLB advances - Overnight

  ​ ​ ​

$

  ​ ​ ​

$

19,171

  ​ ​ ​

$

158,000

  ​ ​ ​

4.48

%  

%

Other borrowings

17,590

19,160

28,470

5.54

5.35

Total short-term borrowings

$

17,590

$

38,331

$

186,470

5.01

%

5.35

%

The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At December 31, 2025, the maximum borrowing capacity was $1.7 billion, of which $134.5 million was outstanding in long-term debt, $23.8 million in short-term debt and $498.8 million was used to issue standby letters of credit to collateralize public fund deposits. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day.

The Company also has unsecured line of credit agreements with two correspondent banks, where the total line amount was $27.0 million at December 31, 2025, and $18.0 million at December 31, 2024. There were no amounts outstanding on either line of credit at December 31, 2025, or 2024. Interest on these borrowings accrues daily based on the daily federal funds rate.

In addition to borrowings from FHLB and correspondent bank lines of credit, the Company has availability through the Federal Reserve Bank’s Discount Window of $349.0 million at December 31, 2025. The FRB’s Borrower-in-custody (“BIC”) program allows depository institutions to pledge loans as collateral for Discount Window advances while retaining possession of the loan documentation. At December 31, 2025, $9.6 million in securities were pledged to the Discount Window. At December 31, 2025, $482.8 million in loans were pledged as collateral for the BIC program and provided $339.4 million in borrowing capacity.

v3.26.1
Long-term debt
12 Months Ended
Dec. 31, 2025
Long-term debt  
Long-term debt

13. Long-term debt:

Long-term debt, which consisted of nonconvertible, fixed-rate advances from the FHLB, at December 31, 2025, and 2024 is as follows:

 

Interest Rate 

  ​ ​ ​

  ​ ​ ​

 

(Dollars in thousands, except percents)

  ​ ​ ​

Fixed 

December 31, 2025

December 31, 2024

 

March 2025

4.37

%

$

$

10,000

December 2025

4.40

9,567

December 2025

4.36

20,000

March 2026

4.78

4,292

4,292

March 2026

4.20

15,000

15,000

May 2026

4.08

5,000

5,000

August 2026

3.98

12,047

October 2026

3.95

15,284

March 2027

3.51

12,198

June 2027

4.16

5,224

5,224

July 2027

4.01

21,773

August 2027

4.40

6,461

6,461

October 2027

5.29

2,617

3,941

October 2027

5.18

5,475

5,475

November 2027

3.61

14,937

March 2028

4.45

14,188

14,188

Total FHLB long-term debt

134,496

99,148

Less net fair value discount

(144)

(511)

Total long-term debt

$

134,352

$

98,637

Maturities of long-term debt, by contractual maturity, in years subsequent to December 31, 2025, are as follows:

 

(Dollars in thousands)

2026

$

51,623

2027

68,685

2028

 

14,188

Total FHLB long-term debt

134,496

Less net fair value discount

(144)

Total long-term debt

$

134,352

v3.26.1
Subordinated debt
12 Months Ended
Dec. 31, 2025
Subordinated debt  
Subordinated debt

14. Subordinated debt:

On June 30, 2025, the Company redeemed $33.0 million aggregate principal amount of its 5.375% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “2020 Notes”) which were sold to accredited investors on June 1, 2020. The 2020 Notes qualified as Tier 2 capital for regulatory capital purposes. The 2020 Notes bore interest at a rate of 5.375% per year for the first five years and then floated based on a benchmark rate. The interest rate on the 2020 Notes adjusted to 9.08% on June 1, 2025.

On June 6, 2025, the Company entered into Subordinated Note Purchase Agreements (collectively, the “Subordinated Note Purchase Agreements”) with certain qualified institutional buyers and institutional accredited investors (collectively, the “Subordinated Note Purchasers”) pursuant to which the Company issued and sold $85.0 million in aggregate principal amount of its 7.75% Fixed-to-Floating Rate Subordinated Notes due 2035 (the “Subordinated Notes”) at a price equal to 100 percent of the principal amount. The Subordinated Note Purchase Agreements include customary representations, warranties, and covenants. The Subordinated Notes mature on June 15, 2035, and bear interest at an initial fixed annual rate of 7.75%, payable semi-annually in arrears, to but excluding June 15, 2030. From

and including June 15, 2030, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum initially equal to the then-current three month SOFR plus 411 basis points, payable quarterly in arrears. The Company is entitled to redeem the Subordinated Notes, in whole or in part, any time on or after June 15, 2030, on any interest payment date, and to redeem the Subordinated Notes at any time in whole upon certain other events. Any redemption of the Subordinated Notes will be subject to prior regulatory approval to the extent required. The Subordinated Notes were issued under an Indenture, dated June 6, 2025 (the “Indenture”), by and between the Company and U.S. Bank Trust Company, National Association, as trustee. The Subordinated Notes are not subject to any sinking fund and are not convertible into or, other than with respect to the Exchange Notes, exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Subordinated Notes are not subject to redemption at the option of the holders. The Subordinated Notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Subordinated Notes rank junior in right to payment to the Company’s current and future senior indebtedness. The Subordinated Notes are intended to qualify as Tier 2 capital for regulatory capital purposes. In connection with the issuance and sales of the Subordinated Notes, the Company entered into registration rights agreements with the Subordinated Notes Purchasers, pursuant to which the Company exchanged most of the Subordinated Notes for subordinated notes that are registered under the Securities Act and have substantially the same terms as the Subordinated Notes.

The Subordinated Notes are presented net of unamortized debt issuance costs and included in borrowed funds in the consolidated balance sheets under the caption “Subordinated Debentures.” Subordinated debentures were $83.2 million, net of unamortized debt issuance costs of $1.8 million, at December 31, 2025, and $33.0 million, net of no debt issuance costs, at December 31, 2024. Interest expense on subordinated debentures was $5.0 million in 2025, $1.8 million in 2024 and $1.8 million in 2023.

On July 1, 2024, the Company assumed $10.3 million of floating rate junior subordinated deferrable interest debentures due December 15, 2036 (“Debentures”) as a result of the FNCB merger at a fair market value of $8.0 million. The Debentures are held by First National Community Statutory Trust I, a Delaware statutory trust (the “Trust”). The Debentures and corresponding trust preferred securities (the “Trust Securities”) have a variable interest rate which resets quarterly to 3-month CME Term SOFR plus a spread adjustment of 0.26161% and a margin of 1.67%. The Debentures are unsecured and rank subordinate and junior in right to all indebtedness, liabilities and obligations of the Company. The Debentures represent the sole assets of the Trust. The Trust Securities may be prepaid at the election of the Company. The Company’s investment in the Trust is reflected on a deconsolidated basis. At December 31, 2025, and 2024, the Debentures were $8.1 million and $8.0 million, respectively, and are included in borrowed funds in the consolidated balance sheets under the caption “Junior Subordinated Debentures.” Interest expense on the Debentures was $745 thousand in 2025 and $415 thousand in 2024.

v3.26.1
Fair value of financial instruments
12 Months Ended
Dec. 31, 2025
Fair value of financial instruments  
Fair value of financial instruments

15. Fair value of financial instruments:

The following methods and assumptions were used by the Company to construct the summary table below containing the fair values and related carrying amounts of financial instruments measured at fair value:

 Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model and quoted market prices.

At December 31, 2025, the Company owned 27 corporate debt securities with an aggregate amortized cost and fair value of $24.3 million and $24.8 million, respectively. At December 31, 2025, the market for one corporate debt security was not active based on transaction criteria for similar instruments. The aggregate amortized cost and fair value for this security was $0.9 million and $1.0 million, respectively, at December 31, 2025. The Company obtained a valuation for this security from a third-party service provider that prepared the valuation using a market approach that involves identifying a population of transactions for similar instruments and incorporating an evaluation to capture credit risk associated with the bond. Management takes measures to validate the service providers’ analysis and is actively involved in the valuation process, including reviewing the population and evaluation of credit risk. Management believes this approach to be a conservative approach as it takes into consideration securities that have longer maturities or longer call

dates, issuers with smaller asset sizes, and securities with smaller issue amounts. These factors are typically considered to be factors that would add credit spread to a bond, thus resulting in a higher required yield. Management believes the valuation results from this market approach to be consistent with pricing and data for similar deals at December 31, 2025. The Company considers the inputs used in the market approach to be unobservable Level 3 inputs because, while inputs are based on actual transactions, the relative number of transactions in the population is small and subjective assumptions are used in considering factors considered to incorporate credit spreads into the price determination. Management will continue to monitor the market for this security to assess the market activity and the availability of observable inputs and will continue to apply these controls and procedures to the valuations received from People's third-party service provider. During the year ended December 31, 2025, there were no transfers into Level 3.

Individually evaluated loans: Fair values for individually evaluated loans are estimated using underlying collateral values, where applicable.

Interest rate swaps and floors:  Values of these instruments are obtained through an independent pricing source utilizing information which may include market observed quotations for swaps, market index rates, forward rates and rate volatility. Derivative contracts create exposure to interest rate movements as well as risks from the potential of non-performance of the counterparty.

Other real estate owned:  Other real estate owned ("OREO") represents properties that the Company has acquired through foreclosure by either accepting a deed in lieu of foreclosure, or by taking possession of assets that collateralized a loan, and former bank premises that are no longer used for operations or for future expansion. The Company reports OREO at the lower of cost or fair value less cost to sell, adjusted periodically based on a current appraisal. Write-downs and any gain or loss upon the sale of OREO is recorded in other noninterest income. OREO is reported in other assets on the consolidated balance sheet. At December 31, 2025, OREO had a carrying amount of $1.7 million and $0.7 million December 31, 2024. During the year ended December 31, 2024, one former community banking office with a carrying value of $711 thousand was transferred to OREO. In 2025, an additional former banking office with a carrying value of $221 thousand was transferred to OREO, and the Company acquired one commercial property through foreclosure. The commercial property had a recorded investment of $750 thousand that was included in OREO at December 31, 2025. Other real estate owned is classified within Level 3 in the fair value hierarchy based on appraisals, letters of intent or agreement of sale received from third parties.

Assets and liabilities measured at fair value on a recurring basis at December 31, 2025, and 2024 are summarized as follows:

 

At December 31, 2025

 

Fair Value Measurement Using

 

Quoted Prices in

Significant

Significant

 

Active Markets for

Other Observable

Unobservable

 

Identical Assets

Inputs

Inputs

 

(Dollars in thousands)

  ​ ​ ​

Amount

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

U.S. Treasury securities

  ​ ​ ​

$

30,998

  ​ ​ ​

$

30,998

  ​ ​ ​

$

  ​ ​ ​

$

U.S. government-sponsored enterprises

State and municipals:

Taxable

 

61,622

 

61,622

Tax-exempt

 

125,117

 

125,117

Residential mortgage-backed securities:

U.S. government agencies

 

42,699

 

42,699

U.S. government-sponsored enterprises

 

160,080

 

160,080

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

 

1,770

 

1,770

Private collateralized mortgage obligations

 

48,484

 

48,484

Asset backed securities

16,267

 

16,267

Corporate debt securities

24,794

23,806

988

Negotiable certificates of deposit

732

732

Common equity securities

2,598

2,598

Total investment securities

$

515,161

$

33,596

$

480,577

$

988

Interest rate swap-other assets

$

15,583

$

15,583

Interest rate swap-other liabilities

$

(15,345)

$

(15,345)

At December 31, 2024

 

Fair Value Measurement Using 

 

Quoted Prices in

Significant

Significant

 

Active Markets for

Other Observable

Unobservable

 

Identical Assets

Inputs

Inputs

 

(Dollars in thousands)

  ​ ​ ​

Amount

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

U.S. Treasury securities

  ​ ​ ​

$

167,551

  ​ ​ ​

$

167,551

  ​ ​ ​

$

  ​ ​ ​

$

U.S. government-sponsored enterprises

State and municipals:

Taxable

 

68,899

 

68,899

Tax-exempt

 

66,117

 

66,117

Residential mortgage-backed securities:

U.S. government agencies

 

1,376

 

1,376

U.S. government-sponsored enterprises

 

126,376

 

126,376

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1,856

1,856

Private collateralized mortgage obligations

38,572

38,572

Asset backed securities

23,252

23,252

Corporate debt securities

31,621

26,999

4,622

Negotiable certificates of deposit

709

709

Common equity securities

 

2,430

2,430

Total investment securities

$

528,759

$

169,981

$

354,156

$

4,622

Interest rate swap-other assets

$

20,537

$

20,537

Interest rate swap-other liabilities

$

(20,151)

$

(20,151)

Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2025, and 2024 are summarized as follows:

Fair Value Measurement Using

Quoted Prices in

Significant

Significant

 

Active Markets for

Other Observable

Unobservable

 

(Dollars in thousands)

Identical Assets

Inputs

Inputs

 

December 31, 2025

  ​ ​ ​

Amount 

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

10,203

  ​ ​ ​

$

  ​ ​ ​

$

  ​ ​ ​

$

10,203

Other real estate owned

$

1,682

$

$

$

1,682

Fair Value Measurement Using 

 

Quoted Prices in

Significant Other

Significant

 

Active Markets for

Observable

Unobservable

 

(Dollars in thousands)

Identical Assets

Inputs

Inputs

 

December 31, 2024

  ​ ​ ​

Amount 

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

22,164

  ​ ​ ​

$

  ​ ​ ​

$

  ​ ​ ​

$

22,164

Other real estate owned

$

738

$

$

$

738

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

 

Quantitative Information about Level 3 Fair Value Measurements 

 

(Dollars in thousands, except percents)

Fair Value

Range

 

December 31, 2025

  ​ ​ ​

Estimate 

  ​ ​ ​

Valuation Techniques 

  ​ ​ ​

Unobservable Input 

  ​ ​ ​

(Weighted Average) 

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

10,203

  ​ ​ ​

Appraisal of collateral

  ​ ​ ​

Appraisal adjustments

  ​ ​ ​

0.0% to 100.0% (52.4)%

 

Liquidation expenses

 

0.0% to 12.2% (0.26)%

Other real estate owned

$

1,682

 

Appraisal of collateral

 

Appraisal adjustments

 

10.0% to 25.0% (16.9)%

 

Liquidation expenses

 

0.0% to 0.0% (0.0)%

Quantitative Information about Level 3 Fair Value Measurements 

 

(Dollars in thousands, except percents)

Fair Value

Range

 

December 31, 2024

  ​ ​ ​

Estimate 

  ​ ​ ​

Valuation Techniques 

  ​ ​ ​

Unobservable Input 

  ​ ​ ​

(Weighted Average) 

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

22,164

  ​ ​ ​

Appraisal of collateral

  ​ ​ ​

Appraisal adjustments

  ​ ​ ​

3.0% to 111.9%  (59.6)%

 

Liquidation expenses

 

0.0% to 6.0% (5.6)%

Other real estate owned

$

738

 

Appraisal of collateral

 

Appraisal adjustments

 

0.0% to 10.0% (9.7)%

 

Liquidation expenses

 

3.0% to 6.0% (5.0)%

 

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal.

The carrying and fair values of the Company’s financial instruments at December 31, 2025, and 2024 and their placement within the fair value hierarchy are as follows:

Fair Value Hierarchy 

Quoted

  ​ ​

  ​ ​

 

Prices in

 

Active

Significant

 

Markets for

Other

Significant

 

Identical

Observable

Unobservable

 

(Dollars in thousands)

Carrying

Fair

Assets

Inputs

Inputs

 

December 31, 2025

  ​ ​ ​

Value 

  ​ ​ ​

Value 

  ​ ​ ​

(Level 1) 

  ​ ​ ​

(Level 2) 

  ​ ​ ​

(Level 3) 

 

Financial assets:

Cash and due from banks

$

268,984

$

268,984

$

268,984

$

$

Investment securities:

Available for sale

 

512,563

 

512,563

30,998

480,577

988

Held to maturity

 

72,047

 

62,798

 

62,798

Equity securities

2,598

2,598

2,598

Loans held for sale

 

805

 

805

 

805

Net loans

 

4,027,889

 

3,953,431

3,953,431

Accrued interest receivable

 

17,633

 

17,633

 

17,633

Mortgage servicing rights

 

1,211

 

2,099

 

2,099

Restricted equity securities (FHLB and other)

12,457

 

12,457

 

12,457

Other assets - interest rate swaps

 

15,583

 

15,583

 

15,583

Total

$

4,931,770

$

4,848,951

Financial liabilities:

Deposits

$

4,434,069

$

4,431,901

$

$

4,431,901

$

Short-term borrowings

32,721

32,904

32,904

Long-term debt

 

134,352

 

134,982

 

134,982

Subordinated debt

 

83,187

 

86,456

 

86,456

Junior subordinated debt

8,140

7,293

7,293

Accrued interest payable

6,792

 

6,792

6,792

Other liabilities - interest rate swaps

 

15,345

 

15,345

15,345

Total

$

4,714,606

$

4,715,673

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Fair Value Hierarchy 

 

Quoted

  ​ ​ ​

  ​ ​ ​

 

Prices in

 

Active

Significant

 

Markets for

Other

Significant

 

Identical

Observable

Unobservable

 

(Dollars in thousands)

Carrying

Fair

Assets

Inputs

Inputs

 

December 31, 2024

  ​ ​ ​

Value 

  ​ ​ ​

Value 

  ​ ​ ​

(Level 1) 

  ​ ​ ​

(Level 2) 

  ​ ​ ​

(Level 3) 

 

Financial assets:

Cash and due from banks

$

135,851

$

135,851

$

135,851

$

$

Investment securities:

Available for sale

 

526,329

 

526,329

167,551

354,156

4,622

Held to maturity

 

78,184

 

65,152

 

65,152

Equity securities

2,430

2,430

2,430

Loans held for sale

 

 

 

Net loans

 

3,951,729

 

3,830,062

3,830,062

Accrued interest receivable

 

15,632

 

15,632

 

15,632

Mortgage servicing rights

 

1,304

 

2,314

 

2,314

Restricted equity securities (FHLB and other)

 

10,220

 

10,220

 

10,220

Other assets - interest rate swaps

20,537

20,537

20,537

Total

$

4,742,216

$

4,608,527

Financial liabilities:

Deposits

$

4,407,552

$

4,404,117

$

$

4,404,117

$

Short-term borrowings

 

15,900

 

15,900

 

15,900

Long-term debt

 

98,637

 

98,875

 

98,875

Subordinated debt

33,000

32,506

32,506

Junior subordinated debt

8,039

8,167

8,167

Accrued interest payable

 

5,503

 

5,503

5,503

Other liabilities - interest rate swaps

20,151

20,151

20,151

Total

$

4,588,782

$

4,585,219

v3.26.1
Derivatives and hedging activities
12 Months Ended
Dec. 31, 2025
Derivatives and hedging activities  
Derivatives and hedging activities

16. Derivatives and hedging activities:

Risk Management Objective of Using Derivatives

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets and borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income/expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy.  Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.  Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. Such derivatives have been used to hedge the variable cash flows associated with existing variable-rate assets and issuances of debt.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive loss, (AOCI) and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt/assets. During the next twelve months, the Company estimates that no amount will be reclassified as a reduction to interest income. 

Fair Value Hedges of Interest Rate Risk

The Company is exposed to changes in the fair value of certain of its fixed-rate pools of assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, SOFR. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.

As of December 31, 2025, and 2024, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustment for fair value hedges:

Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included

Amortized Amount of the Hedged Assets/(Liabilities)

Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)

(Dollars in thousands)

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

AFS Securities (1)

$

139,219

$

155,731

$

303

$

239

Fixed Rate Loans (2)

50,195

195

Total

$

139,219

$

205,926

$

303

$

434

(1)Fixed Rate AFS Securities. These amounts include the amortized cost basis of closed portfolios of fixed rate assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At December 31, 2025, the amortized cost basis of the closed portfolios used in these hedging relationships was $139.2 million. The amounts of the designated hedged items were $75.0 million. At December 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $155.7 million. The amounts of the designated hedged items were $100.0 million.

(2)Fixed Rate Loan Assets. These amounts include the carrying value of fixed rate loan assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At December 31, 2025, and 2024, the principal value of the hedged item was $0 and $50.0 million, respectively.

Non-designated Hedges

Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. As of December 31, 2025, the Company had 164 interest rate swaps with an asset notional of $402.5 million and a liability notional of $374.3 million, related to this program. As of December 31, 2024, the Company had 147 interest rate swaps with an asset notional of $322.7 million and a liability notional of $305.1 million, related to this program.

The Company’s existing credit derivatives result from participations in or out of interest rate swaps provided by or to external lenders as part of loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans.

Fair Values of Derivative Instruments on the Balance Sheet

 

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2025, and December 31, 2024.

Fair Values of Derivative Instruments

Derivative Assets

Derivative Liabilities

As of December 31, 2025 (1)

As of December 31, 2024 (1)

As of December 31, 2025 (1)

As of December 31, 2024 (1)

(Dollars in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Notional Amount

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments

Interest rate products

$

Other assets

$

Other assets

$

$

75,000

Other liabilities

$

329

Other liabilities

$

447

Total derivatives designated as hedging instruments

$

$

$

329

$

447

Derivatives not designated as hedging instruments

Interest rate products

$

368,468

Other assets

$

15,896

Other assets

$

21,005

$

368,468

Other liabilities

$

15,659

Other liabilities

$

20,619

Other contracts

34,021

Other assets

2

Other assets

1

5,826

Other liabilities

Other liabilities

Total derivatives not designated as hedging instruments

$

15,898

$

21,006

$

15,659

$

20,619

(1) The notional asset amount of interest rate swaps at December 31, 2025, was $368.5 million and $34.0 million for risk participation agreements. The notional asset amount of interest rate swaps at December 31, 2024, was $297.9 million and $24.7 million for risk participation agreements.

Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of income and comprehensive income for the years ended December 31, 2025, 2024 and 2023.

Location and Amount of Gain or (Loss)

Recognized in Income on Fair Value and

Cash Flow Hedging Relationships

For the Year Ended December 31, 

2025

2024

2023

(Dollars in thousands)

  ​

Interest Income

  ​

  ​

Interest Income

  ​

  ​

Interest Income

Total amounts of income and expense line items presented in the statements of income and

comprehensive income in which the effects of fair value or cash flow hedges are recorded

$

(127)

$

(267)

$

142

The effects of fair value and cash flow hedging:

Gain or (loss) on fair value hedging relationships

Interest contracts

Hedged items

(131)

(899)

841

Derivatives designated as hedging instruments

4

632

(681)

in earnings based on an amortization approach

Gain or (loss) on cash flow hedging relationships

Interest contracts

Amount of (loss) reclassified from AOCI into income

(48)

Amount of gain reclassified from AOCI into income - Included Component

Amount of (loss) reclassified from AOCI into income - Excluded Component

$

$

$

(48)

Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income

The tables below present the effect of the Company’s other derivative financial instruments on the consolidated statements of income and comprehensive income for the years ended December 31, 2025, 2024 and 2023.

 

Amount of Gain or (Loss)

Amount of Gain or (Loss)

Amount of Gain

 

Recognized in

Recognized in

Recognized in

Location of Gain or (Loss)

 

Income on Derivatives

Income on Derivatives

Income on Derivatives

Recognized in Income

 

Year Ended

Year Ended

Year Ended

(Dollars in thousands)

  ​ ​ ​

on Derivatives

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

  ​ ​ ​

December 31, 2023

Derivatives not designated as hedging instruments:

Interest rate products

 

Noninterest income (expense)

$

(149)

$

(83)

$

(262)

Other contracts

Noninterest income (expense)

(122)

(7)

(6)

Total

 

$

(271)

$

(90)

$

(268)

Fee income

Noninterest income

$

1,256

$

368

$

652

Offsetting Derivatives

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2025, and December 31, 2024. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets.

Offsetting of Derivative Assets

as of December 31, 2025

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Assets

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

  ​

Assets

Balance Sheet

Balance Sheet

Instruments

Posted

Amount

Derivatives

$

15,896

$

$

15,896

$

$

8,960

$

6,936

Offsetting of Derivative Liabilities

as of December 31, 2025

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Liabilities

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

Liabilities

Balance Sheet

Balance Sheet

Instruments

Posted(1)

Amount

Derivatives

$

15,988

$

$

15,988

$

15,988

$

$

Offsetting of Derivative Assets

as of December 31, 2024

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Assets

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

Assets

Balance Sheet

Balance Sheet

Instruments

Posted

Amount

Derivatives

$

21,005

$

$

21,005

$

$

15,900

$

5,105

Offsetting of Derivative Liabilities

as of December 31, 2024

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Liabilities

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

Liabilities

Balance Sheet

Balance Sheet

Instruments

Posted(1)

Amount

Derivatives

$

21,065

$

$

21,065

$

21,065

$

$

(1)Cash collateral of $2.2 million was paid as of December 31, 2025, but not presented as an offset above.

Credit-risk-related Contingent Features

The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

As of December 31, 2025, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $2.3 million. As of December 31, 2024, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $350 thousand.

The Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $2.2 million and $0.8 million against its obligations under these agreements as of December 31, 2025, and 2024. Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the agreement. The cash collateral is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the cash collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above. If the Company had breached any of these provisions it could have been required to settle its obligations under the agreements at the termination value.

 

v3.26.1
Stock plans
12 Months Ended
Dec. 31, 2025
Stock plans  
Stock plans

17. Stock plans:

In May 2017, the Company’s stockholders approved the 2017 equity incentive plan (“2017 Plan”). In May 2023, the Company’s stockholders approved the 2023 equity incentive plan (“2023 Plan”). The 2017 Plan and 2023 Plan authorize grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. Under the 2017 Plan and 2023 Plan, the compensation committee of the Company’s board of directors has the authority to, among other things:

Select the persons to be granted awards under the Plan;
Determine the type, size and term of awards;
Determine whether such performance objectives and conditions have been met; and
Accelerate the vesting or exercisability of an award.

Persons eligible to receive awards under the 2017 Plan and 2023 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries.

On July 1, 2024, as a result of the FNCB merger, the Company assumed those outstanding and unvested restricted stock

awards that had been granted under the FNCB 2023 Equity Incentive Plan after September 27, 2023, the date of the definitive Agreement and Plan of Merger between Peoples and FNCB. As of December 31, 2025. these awards will be expensed over the remaining life of 40 months.

As of December 31, 2025, 17,104 shares of the Company’s common stock were available for grant as awards pursuant to the 2023 Plan. While the 2017 Plan will remain in effect in accordance with its terms to govern outstanding awards under that plan, the Company intends to make future grants under the 2023 Plan. If any outstanding 2017 Plan awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for re-grant to others under the 2023 Plan.

In 2025, the Company granted 36,338 time based restricted stock unit awards and 41,892 performance based restricted stock unit awards, under the 2023 Plan. In 2024, the Company granted 8,895 time based restricted stock award and 23,243 performance based restricted stock awards, under the 2023 Plan.

The non-performance restricted stock award and restricted stock unit awards made in 2025 vest equally over either three or seven years. The non-performance stock grants made in 2024 and 2023 vest equally over three years. The performance-based restricted stock units vest over three fiscal years and include conditions based on the Company’s three-year cumulative diluted earnings per share and three-year average return on tangible common equity that determines the number of restricted stock units that may vest.

The activity related to the 2017 and 2023 Plans for each of the years ended December 31, 2025, 2024 and 2023 is as follows:

 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Nonvested, January 1

 

38,574

 

58,631

 

39,470

Assumed in merger

16,890

Granted shares

65,141

 

8,894

 

23,428

Vested shares

 

(24,663)

(31,067)

(16,791)

(Forfeited) surrendered shares

(3,942)

(14,774)

12,524

Nonvested, December 31

 

75,110

 

38,574

 

58,631

The Company expenses the fair value of all-share based compensation over the requisite service period commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. Compensation is recognized over the vesting period and adjusted based on the performance criteria. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the consolidated statements of income and comprehensive income.

The Company recognized expense for awards granted under the 2017 and 2023 Plans of $1.0 million in 2025, $0.6 million in 2024 and $0.9 million in 2023. As of December 31, 2025, the Company had $2.5 million of unrecognized compensation expense associated with restricted stock awards. The remaining cost is expected to be recognized over a weighted average vesting period of 3.8 years.

v3.26.1
Employee benefit plans
12 Months Ended
Dec. 31, 2025
Employee benefit plans  
Employee benefit plans

18. Employee benefit plans:

The Company sponsors a Retirement Profit Sharing 401(k) Plan and previously sponsored an Employee Stock Ownership Plan (“ESOP”). On June 25, 2025, the board of directors adopted a resolution to merge the ESOP into the Retirement Profit Sharing 401(k) Plan; which became effective on October 15, 2025. The Company also maintains Supplemental Executive Retirement Plans (“SERPs”) and an Employees’ Pension Plan, which is currently frozen.

Previously, under the ESOP, amounts approved by the Company’s Board of Directors were paid into the ESOP and each eligible participant was credited with an amount in proportion to their annual compensation or a fixed dollar amount. All contributions to the ESOP were invested primarily in the common stock of the Company.

Under the Retirement Profit Sharing 401(k) Plan, amounts approved by the Board of Directors have been paid into a fund and each participant was credited with an amount in proportion to their annual compensation. Upon retirement, death or termination, each participant is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Eligible participants may elect deferrals of up to the maximum amounts permitted by law.

There were no ESOP contributions in 2025, 2024 or 2023. The Company contributed $1.7 million in 2025, $1.3 million in 2024 and $1.1 million in 2023, to the Retirement Profit Sharing 401(k) Plan, which was comprised of a safe harbor contribution of $1.3 million, $1.0 million and $0.8 million, respectively and a discretionary match of $0.4 million, $0.3 million and $0.3 million, respectively.

The Company had established a SERP Plan to replace 401(k) plan benefits lost for certain officers due to compensation limits imposed on qualified plans by federal tax law. The annual benefit was a maximum of 6 percent of the executive compensation in excess of Federal limits. The total liability associated with this plan was $223 thousand at December 31, 2024. The liability was satisfied in full in 2025 upon retirement of the participants. The expense associated with the plan was $43 thousand and $19 thousand for 2024 and 2023, respectively.

 

The Company has SERPs for the benefit of certain officers. The Company assumed $2.0 million in SERP liability in the FNCB merger. At December 31, 2025, and 2024, other liabilities include $4.9 million and $5.1 million accrued under the plans. Compensation expense includes approximately $0.5 million, $0.4 million and $0.4 million relating to these SERPs for the years ended December 31, 2025, 2024 and 2023, respectively.

Under the Employees’ Pension Plan, currently frozen, amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008, no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of the Company.

Information related to the Employees’ Pension Plan at December 31, 2025, and 2024 is as follows:

 

 

Pension Benefits 

 

(Dollars in thousands)

2025

2024

 

Change in benefit obligation:

  ​ ​ ​

  ​ ​ ​

Benefit obligation, beginning

$

12,744

$

13,845

Interest cost

 

661

 

634

Change in experience loss

 

103

 

77

Change in actuarial assumptions

 

252

 

(867)

Benefits paid

 

(950)

 

(945)

Benefit obligation, ending

 

12,810

 

12,744

Change in plan assets:

Fair value of plan assets, beginning

 

18,532

 

17,609

Actual return on plan assets

 

2,324

 

1,868

Employer contributions

 

 

Benefits paid

 

(950)

 

(945)

Fair value of plan assets, ending

 

19,906

 

18,532

Funded status at end of year

$

7,096

$

5,788

The Company utilized the mortality scale within the mortality tables from MP-2021 to re-measure its pension plan at December 31, 2025, and 2024. The change in the discount rate from 5.38 percent to 5.17 percent resulted in an increase to the benefit obligation of $0.3 million in 2025 and a decrease of $0.9 million in 2024.

Amounts recognized in the consolidated balance sheets at December 31, 2025, and 2024 are as follows:

 

Pension Benefits 

 

(Dollars in thousands)

2025

2024

 

(Other assets)/other liabilities

  ​ ​ ​

$

(7,096)

  ​ ​ ​

$

(5,788)

  ​ ​ ​

Amounts recognized in the accumulated other comprehensive loss consist of:

Net actuarial gain

 

(2,178)

 

(2,852)

Deferred taxes

 

478

 

622

Net amount recognized

$

(1,700)

$

(2,230)

The accumulated benefit obligation for the defined benefit pension plan was $12.8 million and $12.7 million at December 31, 2025, and 2024, respectively.

Components of net periodic pension income and other amounts recognized in other comprehensive income are as follows:

Year Ended December 31, 

(Dollars in thousands)

2025

2024

Net periodic pension benefit:

  ​ ​ ​

  ​ ​ ​

Interest cost

$

661

$

634

Expected return on plan assets

 

(1,348)

 

(1,281)

Amortization of unrecognized net loss

 

52

 

141

Net periodic pension benefit:

$

(635)

$

(506)

Other changes in plan assets and benefit obligations recognized in other comprehensive income:

Net loss

 

662

 

634

Deferred tax

 

(145)

 

(138)

Total recognized in other comprehensive income

 

517

 

496

Total recognized in net period pension cost and other comprehensive income

$

(118)

$

(10)

Weighted-average assumptions used to determine benefit obligations and related expenses were as follows:

 

 

Pension Benefits

 

2025

2024

2023

 

Discount rate:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Obligation

 

5.17

%

5.38

%  

4.73

%  

Expense

 

5.38

4.73

4.93

Expected long-term return on plan assets

 

7.50

%

7.50

%  

7.50

%  

 

The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets.

The Company’s pension plan weighted-average asset allocations at December 31, 2025, and 2024, by asset category are as follows:

 

December 31,

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Asset Category:

Cash and cash equivalents

 

16.1

%

1.4

%

Equity securities

 

20.2

50.9

Corporate bonds

 

42.3

29.0

U.S. government securities

 

21.4

18.7

 

100.0

%  

100.0

%

Fair value measurement of pension plan assets at December 31, 2025, and 2024 is as follows:  

  ​ ​ ​

December 31, 2025

 

  ​ ​ ​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

  ​ ​ ​

 

Active Markets

Significant

Significant

 

for Identical

Observable

Observable

 

Assets

Inputs

Inputs

 

(Dollars in thousands)

Total 

(Level 1) 

(Level 2) 

(Level 3) 

 

Cash and cash equivalents

$

3,102

$

3,102

$

 

$

Equity securities:

U.S. large cap

 

3,555

3,555

International

 

501

501

Fixed income securities:

U.S. Treasuries

 

3,514

3,514

U.S. government agencies

 

770

770

Corporate bonds

 

8,464

8,464

Total

$

19,906

$

7,158

$

12,748

$

  ​ ​ ​

December 31, 2024

  ​ ​ ​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

  ​ ​ ​

 

Active Markets

Significant

Significant

 

for Identical

Observable

Observable

 

Assets

Inputs

Inputs

 

(Dollars in thousands)

Total 

(Level 1) 

(Level 2) 

(Level 3) 

 

Cash and cash equivalents

$

255

$

255

$

 

$

Equity securities:

U.S. large cap

 

8,598

8,598

International

 

853

853

Fixed income securities:

U.S. Treasuries

 

1,667

1,667

U.S. government agencies

 

1,791

1,791

Corporate bonds

 

5,368

5,368

Total

$

18,532

$

9,706

$

8,826

$

The Company investment policies and strategies with respect to the pension plan include: (i) Trust and Wealth Solutions’ equity philosophy is large-cap core diversified across all eleven economic sectors benchmarked against the S&P 500. No individual equity represents more than 10% of the portfolio; (ii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. Treasury Bills, Bonds, and Notes, government agencies, and high-quality corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10 percent; (ii) fixed income 70%; and (iii) equities 20 percent. There is no company stock included in equity securities at December 31, 2025, or 2024. The Company has not determined the amount of the expected contribution to the Employee’s Pension Plan for 2026.

The following benefit payments are expected to be paid in the next five years and in the aggregate for the five years thereafter:

(Dollars in thousands)

  ​ ​ ​

Pension Benefits

 

2026

$

1,043

2027

 

1,049

2028

 

1,038

2029

 

1,021

2030

 

1,017

Thereafter

4,836

Total

$

10,004

v3.26.1
Income taxes
12 Months Ended
Dec. 31, 2025
Income taxes  
Income taxes

19. Income taxes:

The Company operates exclusively in the United State and had no foreign income, foreign income tax expense, or foreign income taxes paid for the years ended December 31, 2025, 2024 and 2023.

The current and deferred amounts of the provision for income taxes expense (benefit) for each of the years ended December 31, 2025, 2024 and 2023 are summarized as follows:

 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Current tax provision

Federal

$

7,007

$

3,299

$

3,853

State

1,326

320

Total current tax provision

8,333

3,619

3,853

Deferred tax provision (benefit)

Federal

4,655

(3,449)

1,268

State

59

(200)

Total deferred tax provision (benefit)

 

4,714

(3,649)

1,268

Total income tax expense (benefit)

$

13,047

$

(30)

$

5,121

The components of the net deferred tax asset at December 31, 2025, and 2024 are summarized as follows:

 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Deferred tax assets:

Allowance for credit losses

$

8,706

$

9,217

Lease liability

4,043

2,774

Defined benefit plan

 

1,544

 

1,280

Deferred compensation

 

1,015

 

1,046

Investment securities available for sale

6,391

10,681

Purchase accounting

5,625

9,084

Built-in loss carryforward

7,371

7,331

Other

 

1,294

 

1,285

Total

 

35,989

 

42,698

Deferred tax liabilities:

Lease right-of-use assets

3,902

2,684

Premises and equipment, net

 

2,639

 

1,974

Deferred loan costs

396

467

Accrued compensation

 

1,632

 

803

Other

 

865

 

1,082

Total

 

9,434

 

7,010

Net deferred tax asset

$

26,555

$

35,688

The acquisition of FNCB triggered a change in ownership, as defined under Internal Revenue Code (IRC) Section 382. As a result, the Company determined that at the date of the ownership change, it had a net unrealized built-in loss (“NUBIL”). Under IRC Section 382, the Company’s net built-in losses that existed prior to the ownership change are limited in their utilization based on the fair market value of the Company’s assets at the time of the change and the applicable federal long-term tax-exempt rate. Due to the limitation, the Company has reassessed its deferred tax assets and liabilities, including the realizability of any built-in losses. The impact of these limitations has been reflected in the Company’s tax provision for the period. At both December 31, 2025, and December 31, 2024, the Company is limited to an approximate $4.8 million annual limitation on its ability to utilize its built-in losses and has built-in loss carryforward of approximately $33.6 million that do not expire and can be utilized to offset future taxable income. Based on the Company’s projections of future taxable income, it is more likely than not the Company will fully utilize these carryforwards in future years.

A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 21.0 percent for the years ended December 31, 2025, 2024 and 2023 is summarized as follows:

2025

2024

2023

(Dollars in thousands, except percents)

  ​ ​ ​

Amount

  ​ ​ ​

%

  ​ ​ ​

Amount

  ​ ​ ​

%

  ​ ​ ​

Amount

%

 

Federal provision for income tax at statutory rate

$

15,169

21.00

%

$

1,778

21.00

%

$

6,825

21.00

%

Increase (decrease) resulting from:

State income tax, net of federal benefit(1)

1,094

1.51

95

1.16

397

1.22

Tax credit, net of amortization(2)

 

(1,285)

(1.78)

(631)

(7.45)

(755)

(2.32)

Nontaxable or nondeductible items

Tax-exempt interest income, net

 

(1,591)

(2.20)

 

(1,237)

(14.61)

 

(1,057)

(3.25)

Income from bank owned life insurance

 

(429)

(0.59)

 

(360)

(4.25)

 

(221)

(0.68)

Nondeductible transaction costs

 

206

2.43

 

179

0.55

Other, net

 

89

0.12

 

119

1.36

 

(247)

(0.76)

Total tax provision (benefit)

$

13,047

18.06

%

$

(30)

(0.36)

%

$

5,121

15.76

%

(1)State taxes in New Jersey, New York, and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.
(2)Low income housing tax credits are presented net of the related proportional amortization.

Income taxes paid for each of the three years ended December 31, 2025, 2024, and 2023 were as follows:

(Dollars in thousands)

  ​ ​ ​

2025

2024

  ​ ​ ​

2023

 

Federal

$

6,700

$

1,480

$

3,075

State

New York

(10)

124

47

New Jersey

300

100

340

Pennsylvania

414

Other States

160

150

$

7,564

$

1,854

$

3,462

The Company computes deferred income taxes under the asset and liability method. Deferred income taxes are recognized for tax consequences of “temporary differences” by applying enacted statutory tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions subject to reduction of the asset by a valuation allowance.

The Company follows FASB ASC Topic 740 “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return. ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes. The Company did not recognize or accrue any interest or penalties related to income taxes during the years ended December 31, 2025, 2024 and 2023. The Company does not have an accrual for uncertain tax positions as of December 31, 2025, 2024 or 2023, as deductions taken or benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2022 and thereafter are subject to examination by tax authorities.

v3.26.1
Segment Reporting
12 Months Ended
Dec. 31, 2025
Segment Reporting  
Segment Reporting

20. Segment Reporting:

We operate our business as a single integrated business unit which provides a number of products and services to meet our customers banking and financial needs. Our products and services include commercial lending and leasing products such as real estate secured lending, equipment finance, working capital lines of credit, and construction loans. We also offer consumer lending services including secured and unsecured installment loans, home equity loans, construction and real estate loans, credit lines and auto loans. Our products also include deposit services such as personal and business checking accounts, savings, money market and certificates of deposits. Additionally, we provide an array of cash management services, trust and wealth management services. These services are all delivered through the same business network.

The Company has identified its executive management committee as the chief operating decision maker (“CODM”). Collectively, this centralized leadership group is responsible for allocating resources across the Company, assessing overall financial and operational performance, setting strategic direction and risk appetite, and approving major investments and capital decisions. The CODM uses consolidated financial results and metrics to assess performance and profitability as a single business segment. Consolidated net income and other metrics are used to assess performance by comparing results on a monthly basis, including variances to consolidated budget and prior period results. Consideration is given to performance of components of the business, such as branches and geographic regions, which are then aggregated. This information is used to achieve strategic initiatives by allowing the CODM to manage resources that drive our business and earnings. Additionally, consolidated net income is used to benchmark the Company against its banking peers.

The accounting policies of the single business unit are the same as provided in Note 1 - "Summary of Significant Accounting Policies" and our segment assets are the same as assets presented in the consolidated balance sheets.

v3.26.1
Parent Company financial statements
12 Months Ended
Dec. 31, 2025
Parent Company financial statements  
Parent Company financial statements

21. Parent Company financial statements:

CONDENSED BALANCE SHEETS

 

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

 

Assets:

Cash and cash equivalents

$

2,245

$

1,151

Equity securities

1,794

1,657

Investment in bank subsidiary

 

599,582

 

499,446

Due from subsidiaries

505

486

Other assets

 

7,504

 

7,813

Total assets

$

611,630

$

510,553

Liabilities and Stockholders’ Equity:

Subordinated debt

$

83,187

$

33,000

Junior subordinated debt

8,140

8,039

Accrued interest payable

320

177

Other liabilities

136

387

Stockholders’ equity

 

519,847

 

468,950

Total liabilities and stockholders’ equity

$

611,630

$

510,553

CONDENSED STATEMENTS OF INCOME

 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Income:

Dividends from subsidiaries

$

30,642

$

20,593

$

20,158

Other income

155

105

4

Gains (losses) on equity securities

 

137

 

130

 

(11)

Total income

 

30,934

 

20,828

 

20,151

Expense:

Acquisition related expenses

3

1,877

1,580

Interest expense on subordinated debt

5,712

2,189

1,774

Other expenses

 

1,745

 

1,551

 

1,538

Total expenses

 

7,460

 

5,617

 

4,892

Income before taxes and undistributed income

 

23,474

 

15,211

 

15,259

Income tax benefit

(1,581)

 

(1,464)

 

(857)

Income before undistributed income of subsidiaries

 

25,055

 

16,675

 

16,116

Equity in undistributed income of subsidiaries (distributions in excess of net income)

 

34,132

 

(8,177)

 

11,264

Net income

$

59,187

$

8,498

$

27,380

 

condensed Statements of Cash Flows

 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Cash flows from operating activities:

Net income

$

59,187

$

8,498

$

27,380

Adjustments:

Amortization expense related to acquired borrowings

101

47

Amortization of subordinated debt issuance costs

237

Net (gains) losses on investment securities

 

(137)

 

(130)

 

11

(Undistributed net income of subsidiaries) distributions in excess of net income

 

(34,132)

 

8,177

 

(11,264)

Decrease (increase) in other assets

 

118

 

(1,430)

359

(Decrease) increase in other liabilities

 

(108)

 

1,252

 

Stock based compensation

 

348

 

786

 

888

Net cash provided by operating activities

 

25,614

 

17,200

 

17,374

Cash flows from investing activities:

Purchases of equity investments without readily determinable fair value

(328)

(802)

Cash balance acquired in merger, net of cash outlay

1,091

Investment in bank subsidiary

(50,000)

Proceeds from sales/calls of equity securities

500

1,567

Net cash (used in) provided by investing activities

 

(49,828)

 

1,856

 

Cash flows from financing activities:

Retirement of common stock

 

(5,886)

Proceeds from the issuance of subordinated debt, net of issuance costs

82,950

Repayment of subordinated debt

(33,000)

Cash dividends paid

 

(24,642)

 

(18,093)

 

(11,659)

Net cash provided by (used in) financing activities

 

25,308

 

(18,093)

 

(17,545)

Increase (decrease) in cash and cash equivalents

 

1,094

 

963

 

(171)

Cash and cash equivalents at beginning of year

 

1,151

 

188

 

359

Cash and cash equivalents at end of year

$

2,245

$

1,151

$

188

v3.26.1
Regulatory matters
12 Months Ended
Dec. 31, 2025
Regulatory matters  
Regulatory matters

22. Regulatory matters:

Dividends are paid by the Parent Company from its assets, which are mainly provided by dividends from the Bank. Under the Pennsylvania Business Corporation Law of 1988, as amended, the Company may not pay a dividend if, after payment, either the Company could not pay its debts as they become due in the usual course of business, or the Company’s total assets would be less than its total liabilities. The determination of total assets and liabilities may be based upon: (i) financial statements prepared on the basis of GAAP; (ii) financial statements that are prepared on the basis of other accounting practices and principles that are reasonable under the circumstances; or (iii) a fair valuation or other method that is reasonable under the circumstances. In addition, the Federal Reserve Board has the power to prohibit dividends by bank holding companies if their actions constitute unsafe or unsound practices. The Federal Reserve Board has issued a policy statement on the payment of cash dividends by bank holding companies, which

expresses the Federal Reserve Board’s view that a bank holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality and overall financial condition. The Federal Reserve Board also indicated that it would be inappropriate for a bank holding company experiencing serious financial problems to borrow funds to pay dividends. Under the prompt corrective action regulations, the Federal Reserve Board may prohibit a bank holding company from paying any dividends if the holding company’s bank subsidiary is classified as “undercapitalized.”

In addition, under the Pennsylvania Banking Code of 1965, as amended, The Bank may only declare and pay dividends out of accumulated net earnings, or accumulated net earnings acquired as a result of a merger within seven years. Further, the Bank may not declare or pay any dividend unless the Bank’s surplus would not be reduced by the payment of the dividend below 100.0 percent of the Bank’s capital stock. Pennsylvania law requires that each year the Bank set aside as surplus, a sum equal to not less than 10.0 percent of its net earnings if surplus does not equal at least 100.0 percent of our capital stock. Under federal law and FDIC regulations, an insured bank may not pay dividends if doing so would make it undercapitalized within the meaning of the prompt corrective action law or if in default of its deposit insurance fund assessment.

Although subject to the aforementioned regulatory restrictions, the Company’s consolidated retained earnings at December 31, 2025, and 2024 were not restricted under any borrowing agreement as to payment of dividends or reacquisition of common stock.

The Company has paid cash dividends since its formation as a bank holding company in 1986. It is the present intention of the Board of Directors to continue this dividend payment policy, however, further dividends must necessarily depend upon earnings, financial condition, appropriate legal restrictions and other factors relevant at the time the Board of Directors considers payment of dividends.

The amount of funds available for transfer from the Bank to the Company in the form of loans and other extensions of credit is also limited. Under Federal regulation, transfers to any one affiliate are limited to 10.0 percent of capital and surplus. At December 31, 2025, the maximum amount available for transfer from the Bank to the Company in the form of loans amounted to $55.8 million. At December 31, 2025, and 2024, there were no loans outstanding, nor were any advances made during 2025 and 2024.

The Company and the Bank are subject to certain regulatory capital requirements administered by the federal banking agencies, which are defined in Section 38 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”). 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 Company’s and the Bank’s consolidated financial statements. In the event an institution is deemed to be undercapitalized by such standards, FDICIA prescribes an increasing amount of regulatory intervention, including the required institution of a capital restoration plan and restrictions on the growth of assets, branches or lines of business. Further restrictions are applied to the significantly or critically undercapitalized institutions including restrictions on interest payable on accounts, dismissal of management and appointment of a receiver. For well capitalized institutions, FDICIA provides authority for regulatory intervention when the institution is deemed to be engaging in unsafe and unsound practices or receives a less than satisfactory examination report rating. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Risk-based capital rules require that banks and holding companies maintain a “capital conservation buffer” of 250 basis points in excess of the “minimum capital ratio.” The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers.

The Bank met the capital requirement for the “well capitalized” category under the regulatory framework for prompt corrective action at December 31, 2025. To be categorized as well capitalized, the Bank must maintain certain minimum Tier I risk-based, total risk-based and Tier I Leverage ratios as set forth in the following tables. The Tier I Leverage ratio is defined as Tier I capital to total average assets less intangible assets. Regulators may assign the Bank to a lower capitalization category based on factors other than capital.

The Company and Bank are required to meet a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.00 percent (a minimum of 4.50 percent plus a capital conservation buffer of 2.50 percent), a Tier 1 capital to risk-weighted assets ratio of at least 8.50 percent (a minimum of 6.00 percent plus a capital conservation buffer of 2.50 percent), a total capital to risk-weighted assets ratio of at least 10.50 percent (a minimum of 8.00 percent plus a capital conservation buffer of 2.50 percent), and a Tier 1 leverage ratio of at least 4.00 percent. Management believes that, as of December 31, 2025, the Company and the Bank met all capital adequacy requirements to which it is subject.

The Company and the Bank’s actual capital ratios at December 31, 2025, and 2024, and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions are as follows:

 

December 31, 2025

 

Minimum to be Well

 

Capitalized under

 

Minimum For Capital

Prompt Corrective

 

Actual 

Adequacy Purposes 

Action Provisions 

 

(Dollars in thousands, except percents)

Amount 

Ratio 

Amount 

Ratio 

Amount 

Ratio 

 

Common equity Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

$

440,852

11.03

%  

$

179,784

 

4.50

%  

NA

NA

Bank

 

520,587

13.06

 

179,427

 

4.50

$

259,172

6.50

%

Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

450,852

11.28

239,712

 

6.00

NA

NA

Bank

 

520,587

13.06

 

239,236

 

6.00

318,981

8.00

Total capital to risk-weighted assets:

Company

 

571,887

14.31

 

319,617

 

8.00

NA

NA

Bank

 

558,435

14.01

 

318,981

 

8.00

 

398,726

10.00

Tier 1 capital to average assets:

Company

 

450,852

8.84

 

204,039

 

4.00

NA

NA

Bank

520,587

10.22

203,726

 

4.00

254,658

5.00

NA = not applicable

December 31, 2024

 

Minimum to be Well

 

Capitalized under

 

Minimum For Capital

Prompt Corrective

 

Actual 

Adequacy Purposes 

Action Provisions 

 

(Dollars in thousands, except percents)

Amount 

Ratio 

Amount 

Ratio 

Amount 

Ratio 

 

Common equity Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

$

399,461

 

10.16

%  

$

176,971

 

4.50

%  

NA

NA

Bank

 

429,958

 

10.95

 

176,640

 

4.50

$

255,147

 

6.50

%

Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

409,461

 

10.41

235,962

 

6.00

NA

NA

Bank

 

429,958

 

10.95

 

235,520

 

6.00

314,027

 

8.00

Total capital to risk-weighted assets:

Company

 

485,117

 

12.34

 

314,616

 

8.00

NA

NA

Bank

 

472,614

 

12.04

 

314,027

 

8.00

 

392,534

 

10.00

Tier 1 capital to average assets:

Company

 

409,461

 

7.97

 

205,493

 

4.00

NA

NA

Bank

429,958

 

8.37

205,431

 

4.00

256,788

 

5.00

NA = not applicable

v3.26.1
Accumulated Other Comprehensive Loss
12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Loss  
Accumulated Other Comprehensive Loss

23. Accumulated Other Comprehensive Loss:

The components of accumulated other comprehensive loss included in stockholders’ equity at December 31, 2025, and 2024 are as follows:

 

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

 

Net unrealized loss on investment securities available for sale

$

(29,144)

$

(48,959)

Income tax benefit

 

(6,390)

 

(10,681)

Net of income taxes

 

(22,754)

 

(38,278)

Benefit plan adjustments

 

(2,178)

 

(2,852)

Income tax benefit

 

(478)

 

(622)

Net of income taxes

 

(1,700)

 

(2,230)

Derivative adjustments

 

(303)

 

(239)

Income tax benefit

 

(66)

 

(52)

Net of income taxes

 

(237)

 

(187)

Accumulated other comprehensive loss

$

(24,691)

$

(40,695)

 

Other comprehensive income and related tax effects for the years ended December 31, 2025, 2024 and 2023 are as follows:

 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

2023

Unrealized gain on investment securities available for sale

$

17,574

$

2,569

$

14,804

Net loss (gain) on the sale of investment securities available for sale (1)

2,241

(1)

(81)

Other comprehensive income on available for sale debt securities

19,815

2,568

14,723

Benefit plans:

Amortization of actuarial loss (2)

52

141

194

Actuarial gain

622

1,377

935

Net change in benefit plan liabilities

 

674

 

1,518

 

1,129

Net change in derivatives

(64)

632

(824)

Other comprehensive income before taxes

20,425

4,718

 

15,028

Income tax expense

 

4,421

 

1,062

 

3,043

Other comprehensive income

$

16,004

$

3,656

$

11,985

(1)Represents amounts reclassified out of accumulated comprehensive income (loss) and included in (losses) gains on sale of investment securities on the consolidated statements of income and comprehensive income.
(2)Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 18 included in these consolidated financial statements.
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 59,187 $ 8,498 $ 27,380
v3.26.1
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
v3.26.1
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
v3.26.1
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]

Cybersecurity Risk Management and Strategy

The current threat environment from phishing emails to cyber-attacks has created an urgent need for increased awareness on cyber and information security. Peoples and the Bank take a risk-based approach to managing these threats. The Bank’s leadership team and its Board of Directors engage in the management of this risk by participating in the information security and cybersecurity strategy and review process.

Cyber and information security programs are designed around industry best practices. Compliance with these best practices along with federal and state regulatory requirements are examined annually by the Department of Banking and the FDIC and we regularly engage third-party external auditors and consultants to assess our compliance.

Our cyber defense strategy includes continuous monitoring, integrated risk assessment, identification of vulnerabilities and human risk factors, and employee awareness. Cybersecurity exercises with other financial services companies and government agencies help prepare the Bank for cybersecurity threats and incidents. Incident response scenarios and business continuity exercises test the organizations preparedness for disaster events. The organization also utilizes several national and global third-party advisors to ensure the appropriateness of the Bank’s security posture, effective operation of the cybersecurity discipline and proper assessment of risk.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

The current threat environment from phishing emails to cyber-attacks has created an urgent need for increased awareness on cyber and information security. Peoples and the Bank take a risk-based approach to managing these threats. The Bank’s leadership team and its Board of Directors engage in the management of this risk by participating in the information security and cybersecurity strategy and review process.

Cyber and information security programs are designed around industry best practices. Compliance with these best practices along with federal and state regulatory requirements are examined annually by the Department of Banking and the FDIC and we regularly engage third-party external auditors and consultants to assess our compliance.

Our cyber defense strategy includes continuous monitoring, integrated risk assessment, identification of vulnerabilities and human risk factors, and employee awareness. Cybersecurity exercises with other financial services companies and government agencies help prepare the Bank for cybersecurity threats and incidents. Incident response scenarios and business continuity exercises test the organizations preparedness for disaster events. The organization also utilizes several national and global third-party advisors to ensure the appropriateness of the Bank’s security posture, effective operation of the cybersecurity discipline and proper assessment of risk.

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]

Board of Director Oversight

Our Board of Directors has ultimate oversight of cybersecurity risk. The Board of Directors is assisted by the Information Technology Committee of the Bank’s Board of Directors (“IT Committee”) which regularly provides reports to the Board of Directors. The IT Committee is comprised of members with experience in managing cybersecurity risks. The IT Committee receives regular updates on cybersecurity risks and incidents and the cybersecurity program through direct interaction with the Chief Information Officer (“CIO”), and the Chief Risk Officer (“CRO”) through quarterly meetings. Cybersecurity reviews are completed at least twice annually and provided to the Board of Directors Audit Committee. Additionally, awareness and training on cybersecurity topics is provided to the whole Board on an annual basis.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Information Technology Committee of the Bank’s Board of Directors (“IT Committee”)
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Directors is assisted by the Information Technology Committee of the Bank’s Board of Directors (“IT Committee”) which regularly provides reports to the Board of Directors. The IT Committee is comprised of members with experience in managing cybersecurity risks. The IT Committee receives regular updates on cybersecurity risks and incidents and the cybersecurity program through direct interaction with the Chief Information Officer (“CIO”), and the Chief Risk Officer (“CRO”) through quarterly meetings. Cybersecurity reviews are completed at least twice annually and provided to the Board of Directors Audit Committee.
Cybersecurity Risk Role of Management [Text Block]

Management’s Role

The CRO and the CIO along with the Information Security Officer are responsible for implementing and maintaining the Company's cybersecurity risk management program. The Information Security Department is led by the Information Security Officer, who reports directly to the CRO. The Chief Risk Officer and the Chief Information Officer report directly to the IT Committee and the Board. The Company’s CIO has over 30 years of experience in technology and cybersecurity, which includes 26 years in the financial services industry. The Information Security Officer has over 20 years in the financial services industry with the last 16 years as a Risk Analyst and then Information Security.

The Company’s Information Security department measures and reports on the quality of information and cyber risk management across all functions. Information security risk is reported by both the Information Security and Enterprise Risk departments through monthly management metric reporting working groups and multiple layers of quarterly risk committees to achieve an appropriate flow of information risk reporting to the Board. The risk committees include the Executive Risk Management Committee, the Management Information Technology Steering Committee and the IT Committee. In addition, we have an escalation process in place to inform senior management and the Board of Directors of any material cybersecurity issues.

Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The risk committees include the Executive Risk Management Committee, the Management Information Technology Steering Committee and the IT Committee
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]

The Company’s Information Security department measures and reports on the quality of information and cyber risk management across all functions. Information security risk is reported by both the Information Security and Enterprise Risk departments through monthly management metric reporting working groups and multiple layers of quarterly risk committees to achieve an appropriate flow of information risk reporting to the Board. The risk committees include the Executive Risk Management Committee, the Management Information Technology Steering Committee and the IT Committee. In addition, we have an escalation process in place to inform senior management and the Board of Directors of any material cybersecurity issues.

Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.26.1
Summary of significant accounting policies (Policies)
12 Months Ended
Dec. 31, 2025
Summary of significant accounting policies  
Nature of operations

Nature of operations:

The accompanying Consolidated Financial Statements include the accounts of Peoples Financial Services Corp. (the “Parent Company”) and its wholly-owned direct and indirect subsidiaries, including Peoples Security Bank and Trust Company (“the Bank”) and 1st Equipment Finance Inc. (“1st Equipment Finance”), collectively, the “Company” or “Peoples”. All significant intercompany balances and transactions have been eliminated in consolidation.

Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, the Bank. The Company services its retail and commercial customers through forty full-service community banking offices located within Allegheny, Bucks, Lackawanna, Lancaster, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna and Wyoming Counties of Pennsylvania, Middlesex County of New Jersey and Broome County of New York.

The Bank is a state-chartered bank and trust company under the jurisdiction of the Department of Banking and the FDIC. The Bank’s primary product is loans to small and medium-sized businesses including equipment financing and leasing. Other lending products include one-to-four family residential mortgages and consumer loans. The Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits.

The banking and financial services industries are highly competitive. The Company faces direct competition in originating loans and in attracting deposits from a significant number of financial institutions operating in its market area, many with a statewide or regional presence, and in some cases, a national presence, as well as other financial and non-financial institutions outside of its market area through online loan and deposit product offerings. Competition comes principally from other banks, savings institutions, credit unions, mortgage banking companies, internet-based financial technology (“FinTech”) companies and, with respect to deposits, institutions offering investment alternatives, including money market funds and online deposit accounts. The increased competition has resulted from changes in the legal and regulatory guidelines, as well as from economic conditions. The cost of regulatory compliance remains high for community banks as compared to their larger competitors that are able to achieve economies of scale.

Peoples Financial Services Corp. and the Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations.

Basis of presentation

Basis of presentation:

The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed Parent Company only financial information regarding the Parent Company. Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations.

Subsequent Events

Subsequent Events:

The Company has evaluated events and transactions occurring subsequent to December 31, 2025, the consolidated balance sheet date, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

On January 7, 2026, the Company purchased a property located at 111 East Market Street, Wilkes Barre, Luzerne County, Pennsylvania, for $1.4 million to relocate its current Wilkes Barre community banking office to this new location. The relocation is scheduled to be completed in the second quarter of 2026.

On January 30, 2026, the board of directors declared a dividend of $0.6250 per share for the first quarter of 2026. The dividend is payable March 13, 2026 to shareholders of record as of February 27, 2026.

On February 19, 2026, the Company executed a partial restructuring of its investment portfolio as part of its ongoing balance sheet and interest rate risk management strategy. The Company sold mortgage backed securities with an aggregate book value of approximately $31.9 million, recognizing a pre tax gain of $0.5 million. The Company intends to redeploy the proceeds by investing approximately $16.0 million into tax exempt municipal securities and allocating approximately $16.0 million to support commercial loan growth. The blended target yield on the reinvestment strategy is expected to exceed the yield on the securities sold. Management evaluated this activity and determined that it represents a non recognized subsequent event. Accordingly, no adjustments have been made to the consolidated financial statements as of and for the year ended December 31, 2025.

Estimates

Estimates:

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for credit losses (“ACL”), and impairment of goodwill. Actual results could differ from those estimates.

Investment securities

Investment securities:

Investment securities are classified and accounted for as either held to maturity or available for sale based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held to maturity when management has the positive intent and ability to hold such securities to maturity. Held to maturity securities are stated at amortized cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available for sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Securities available for sale are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in other comprehensive income in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Generally, estimated fair values for held to maturity and available for sale investment securities are based on quoted market prices from a national pricing service. The fair value of marketable equity securities are based upon quoted market prices. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. The Company had no securities classified as trading at December 31, 2025, and 2024. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred.

Transfers of Financial Assets

Transfers of Financial Assets:

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) 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 (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Loans held for sale

Loans held for sale:

Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan.

Loans, net

Loans, net:

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs and any acquired premiums and discounts, less any write-downs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by the customer.

The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal, equipment financing and other related tax free loans. Retail loans consist of residential real estate and other consumer loans.

The Company makes commercial loans for real estate development and other business purposes to its customers. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer-term loans financing commercial properties. Repayment of these loans is generally dependent upon either the ongoing business cash flow from an owner-occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value ratio of not greater than 80 percent and vary in terms. In addition, the payment expectations on loans secured by income-producing properties typically depend on the successful operations of the related business and thus may be subject to a greater extent to adverse conditions in the real estate market and in the general economy.

Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans and consumer loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a

decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company manages commercial real estate credit risk by prudent underwriting with conservative debt service coverage and loan-to-value ratios at origination; lending to seasoned real estate owners/managers, frequently with personal guarantees of repayment; using reasonable appraisal practices; cross-collateralizing loans to one borrower when deemed prudent; and limiting the amount and types of construction lending. An environmental report is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled hazardous materials.

Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself.

Commercial equipment financing loans and leases consist of various equipment financing originated through the Bank's wholly-owned subsidiary, 1st Equipment Finance. The majority of the loans and leases are originated through third party dealers or equipment manufacturers located outside our primary market area. Generally, a collateral lien is placed on the collateral supporting the loan.

Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan-to-value ratio and term. Residential mortgages may have amortization terms up to 30 years.

Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans.

Off-balance sheet financial instruments

Off-balance sheet financial instruments:

In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an ACL for off-balance sheet financial instruments, if deemed necessary, separately as a liability. This ACL was $1.3 million and $0.9 million for the years ended December 31, 2025, and 2024 and was included in other liabilities on the consolidated balance sheets.

Nonperforming assets

Nonperforming assets:

Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or

charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months.

From time to time, the Company may modify certain loans to borrowers who are experiencing financial difficulty. Interest income on these loans is recognized when earned, using the interest method. The modification categories offered can generally fall within the following categories:

Rate Modification — A modification in which the interest rate is changed to a below market rate.
Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed.
Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time.
Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above.
Combination Modification — Any other type of modification, including the use of multiple categories above.

The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows:

Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention.
Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification.
Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected.
Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be collected in the future.

Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures and bank premises that are no longer used for operations or for future expansion. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure

proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the ACL. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense.

Allowance for credit losses

Allowance for credit losses:

The ACL represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the consolidated balance sheet date. The measurement of expected credit losses is applicable to loans receivable, held to maturity securities measured at amortized cost and available for sale securities that the Company either intends to sell, or it is more likely than not would be required to sell, before recovery of their amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the ACL for loans is considered a critical accounting estimate by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded ACL. The ACL related to loans receivable and held to maturity debt securities is reported separately as a contra-asset on the consolidated balance sheets. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated balance sheets in other liabilities while the provision for credit losses related to unfunded commitments is reported in other noninterest expense in the consolidated statements of income and comprehensive income.

ACL on Loans Receivable:

The ACL on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected credit losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk.  Segments are based primarily on regulatory reporting codes as the loans within each segment share similar risk characteristics and there is sufficient historical peer loss data to supplement the Company’s data used in the model.  The segments include residential real estate, consumer, commercial and industrial, commercial real estate, municipal and equipment financing. The Company has identified the following pools subject to an estimate of credit loss: (1) 1-4 Family Construction; (2) Other Construction; (3) Farmland; (4) Revolving Secured by 1-4 Family; (5) Residential Secured by First Liens; (6) Residential Secured by Junior Liens; (7) Multifamily; (8) CRE Owner Occupied; (9) CRE Non-Owner Occupied; (10) Agriculture; (11) C&I; (12) Consumer; (13) Municipal and (14) Equipment Financing.

At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics.  If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the ACL when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off.

The Company estimates the ACL on loans using an advanced probability of default model which incorporates probability of default, loss given default, exposure at default and probability of attrition attributes. The model considers relevant available information at both the portfolio and loan level from internal data that is supplemented by shared data pool information. The model also incorporates reasonable and supportable economic forecasts. After the reasonable and supportable forecast period, the model reverts to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications.

Also included in the ACL on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis described above. Qualitative factors that the Company considers include changes in lending policies and procedures, changes in management, changes in the quality

of the loan review process, the existence of any concentrations of credit and other external factors. In addition to these factors, the Company also considers specialty lending and the unseasoned nature of the portfolio as qualitative factors in evaluating the equipment financing loan segment. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the adverse stress credit loss scenarios using regulatory stress testing scenarios.

Individually Evaluated Loans:

On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. The Company has determined that any loans currently on nonaccrual status or 90 or more days past due and still accruing are considered impaired and should be individually evaluated for losses. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will establish a reserve for the difference between the fair value of the collateral, less costs to sell and carrying costs at the reporting date and the amortized cost basis of the loan. If this amount is deemed uncollectible, the Company will charge-off that amount.

Acquired Loans:

Acquired loans are included in the Company's calculation of the ACL. The allowance recorded on an acquired loan depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an ACL at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans.

Under FASB ASC Topic 326, a PCD asset is defined as an individual financial asset that as of the date of acquisition has experienced a more than insignificant deterioration in credit quality since origination as determined during the acquisition process. Upon identification of these assets, the amortized cost basis will be adjusted at the time of acquisition to reflect any impairment amount. After acquisition, PCD loans will be either collectively evaluated for reserve requirements or individually evaluated if on nonaccrual status or are 90 or more days past due and still accruing. As of December 31, 2025, there were no acquired PCD loans included in the ACL.

ACL on Off-Balance Sheet Commitments:

The Company is required to include unfunded commitments, except those that are unconditionally cancellable, that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancellable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the ACL on off-balance sheet commitments is included in other liabilities on the consolidated balance sheets and the related credit expense is recorded in other noninterest expense in the consolidated statements of income and comprehensive income.

ACL on Held to Maturity Securities:

The Company’s portfolio of held to maturity securities consists of municipal bonds and U.S. agency residential mortgage-backed securities which are highly rated by major rating agencies and have a long history of no credit losses. In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss-based method is utilized.

ACL on Available for Sale Securities:

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to security, among other factors.  If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses.

Accrued Interest Receivable:

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans, available for sale securities, and held to maturity securities. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the consolidated balance sheets, totaled $14.7 million and $13.2 million at December 31, 2025, and 2024, respectively and is excluded from the estimate of credit losses. Accrued interest receivable on available for sale securities and held to maturity securities, also a component of accrued interest receivable on the consolidated balance sheets, and totaled $3.0 million and $2.4 million, respectively, at December 31, 2025, and 2024 and is excluded from the estimate of credit losses, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. 

Revenue from Contracts with Customers

Revenue from Contracts with Customers:

The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.

The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity.

The following is a discussion of revenues within the scope of the guidance:

Service charges, fees, commissions and other. Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. The Company’s deposit services also include our ATM and debit card interchange revenue that is presented gross of the associated costs. Interchange revenue is generated by the Company’s deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions.
Commission and fees on fiduciary activities.  Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when the Company has a right to invoice and are based on either the market value of the assets managed or the services provided.
Wealth management income. Wealth management income includes fees and commissions charged when the Company arranges for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided.
Merchant services income. Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of the Company’s merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin.
Interest rate swap revenue. Interest rate swap revenue represents net fees received from a counterparty for completing loan swap transactions, which is received at the time the loan closes. Interest rate swap revenue is non-refundable, is not tied to the loan and the Company has no future obligation to the counterparty related to such fees. Accordingly, interest rate swap revenue is recorded in non-interest income upon receipt.
Premises, equipment and lease commitments

Premises, equipment and lease commitments:

Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, over the shorter of the useful life or the lease term.

 

Premises and leasehold improvements

  ​ ​ ​

7 – 40 years

Furniture, fixtures and equipment

 

3 – 10 years

A right-of-use asset and related lease liability is recognized on the consolidated balance sheets for operating leases the Bank has entered to lease certain office facilities. These amounts are reported as components of premises and equipment and other liabilities. Short-term operating leases, which are leases with an original term of 12 months or less and do not have a purchase option that is likely to be exercised, are not recognized as part of the right-of-use asset or lease liability. 

Goodwill and other intangible assets, net

Goodwill and other intangible assets, net:

The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years.

Goodwill and other intangible assets are tested for impairment annually at December 31st or when circumstances arise indicating impairment may have occurred. In assessing impairment, the Company has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, the Company determines it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then the Company would not be required to perform a quantitative impairment test. At December 31, 2025, the Company completed a qualitative goodwill impairment test to determine if it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the Company is less than its carrying value, including goodwill, as described by the GAAP methodology. The Company determined a qualitative test would be performed based on the Company's market capitalization being below the Company's current book value. Additionally, the Company used an average control premium associated with acquisitions announced during the last three years and multiplied the average control premium by its market capitalization which allowed management to compare to the Company's current book value to determine if an adjustment to goodwill is warranted. Based on this analysis, management concluded it is more likely than not that the fair value of the Company, as of December 31, 2025, is higher than its carrying value, and, therefore, goodwill is not considered impaired and no further testing is required. The Company did not have any impairment of goodwill as of December 31, 2025, and 2024.

Mortgage servicing rights

Mortgage servicing rights:

Mortgage servicing rights are recognized as a separate asset upon the sale and servicing of mortgage loans by the Company. The Company calculates a mortgage servicing right by allocating the total costs incurred between the loan sold and the servicing right, based on their relative fair values at the date of the sale. Mortgage servicing rights are included in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. In addition, mortgage servicing rights are evaluated for impairment at each reporting date based on the fair value of those rights. For purposes of measuring impairment, the rights are stratified by loan type, term and interest rate. The amount of impairment recognized, through a valuation allowance, is the amount by which the mortgage servicing rights for a stratum exceed their fair value.

Restricted equity securities

Restricted equity securities:

Investments in restricted securities have limited marketability, are carried at cost and are evaluated for impairment based on the determination of the ultimate recoverability of the par value of the stock. The Company’s investment in restricted securities is comprised of stock in the FHLB and Atlantic Community Bankers Bank ("ACBB").

As a member of the FHLB, the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be redeemed by the FHLB or transferred to another member institution, and all redemptions of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. The carrying value of restricted stock is included in other assets.

Equity securities without readily determinable fair values

Equity securities without readily determinable fair values:

Equity securities without readily determinable fair values generally include equity interests in two FinTech companies and an equity interest in an insurance company. The Company evaluates equity securities without readily determinable

fair values for impairment quarterly, or more frequently should events or circumstances indicate that their respective carrying values may not be recoverable.

Bank owned life insurance

Bank owned life insurance:

The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance on certain employees or directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from increases in cash surrender value of the policies is included in noninterest income. The policies can be liquidated, if necessary, with associated tax costs. However, the Company intends to hold these policies and, accordingly, the Company has not provided for income taxes on the earnings from the increase in cash surrender value.

Pension and post-retirement benefit plans

Pension and post-retirement benefit plans:

The Company sponsors a Retirement Profit Sharing 401(k) Plan and maintains Supplemental Executive Retirement Plans (“SERPs”) and an employee pension plan, which is currently frozen. The Company also provides post-retirement benefit plans other than pensions, consisting principally of life insurance benefits, to eligible retirees. The liabilities and annual income or expense of the Company’s pension and other post-retirement benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The fair values of plan assets are determined based on prevailing market prices or estimated fair value for investments with no available quoted prices.

Cash and cash equivalents

Cash and cash equivalents:

Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and borrowings with original maturities fewer than 90 days.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities:

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets and borrowings.

The Company records all derivatives on the consolidated balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flows from these derivatives are classified in the Consolidated Statement of Cash Flows consistently with the classification of the cash flow of the hedged items. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company has elected to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Fair value of financial instruments

Fair value of financial instruments:

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements.

Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument.

Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include:

Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
Income taxes

Income taxes:

Deferred income taxes are provided on the balance sheet method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the effective date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for any year in the three-year period ended December 31, 2025.

As applicable, the Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various state jurisdictions. With limited exception, the Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2022.

Other comprehensive income

Other comprehensive income:

The components of other comprehensive income and their related tax effects are reported in the consolidated statements of income and comprehensive income. The accumulated other comprehensive loss included in the consolidated balance sheets relates to net unrealized gains and losses on investment securities available for sale, the unrealized losses and gains on derivatives fair value and the unfunded benefit plan amounts which include prior service costs and unrealized net losses.

Earnings per share

Earnings per share:

Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to awards of restricted stock units and are determined using the treasury stock method.

 

For the Years Ended December 31,

2025

2024

(Dollars in thousands, except per share data)

Basic  

Diluted  

Basic  

  ​ ​ ​

Diluted  

Net income

  ​ ​ ​

$

59,187

  ​ ​ ​

$

59,187

  ​ ​ ​

$

8,498

  ​ ​ ​

$

8,498

Average common shares outstanding

 

9,994,281

 

10,073,996

 

8,531,122

 

8,586,035

Earnings per share

$

5.92

$

5.88

$

1.00

$

0.99

Stock-based compensation

Stock-based compensation:

The Company recognizes all share-based payments to employees in the consolidated statements of income and comprehensive income based on their fair values. The fair value of such equity instruments is recognized as an expense in the consolidated financial statements as services are performed. The Company has granted restricted stock awards and units to employees at a price equal to the fair value of the shares underlying the awards at the date of grant. The fair value of restricted stock awards and units are equivalent to the fair value on the date of grant and is amortized over the vesting period.

Subordinated debt and junior subordinated debt

Subordinated debt and junior subordinated debt:

The subordinated and junior subordinated notes are recorded at par with related debt issuance costs reported as a direct reduction from the carrying amount. Issuance costs are amortized over the remaining maturity of the notes and reflected in interest expense.

Recent accounting standards

Recent accounting standards:

Adoption of New Accounting Standard

Accounting Standards Update (“ASU”) 2024-01, “Compensation – Stock Compensation (Topic 718) – Scope Application of Profits Interest and Similar Awards” (ASU 2024-01) clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and therefore within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to the profits and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. ASU 2024-01 was effective January 1, 2025, including interim periods, and did not have a significant impact on the consolidated financial statements.

ASU 2024-02 “Codification Improvements” (“ASU 2024-02”) amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 was effective January 1, 2025, and did not have a significant impact on the consolidated financial statements.

ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state and foreign taxes as well as taxes paid. It also requires greater detail in the rate reconciliation of items which exceed 5 percent of pretax income. ASU 2023-09 was effective on January 1, 2025, and the Company adopted the new disclosure requirements retrospectively. The adoption of ASU 2023-09 did not have a significant impact on the consolidated financial statements, but has resulted in additional disclosures within the notes to consolidated financial statements related to income taxes. Additional information is provided in Note 19 – “Income Taxes.”

Recently Issued but Not Yet Effective Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the required effective dates. Unless otherwise discussed, management believes the impact of any recently issued standards, including those issued but not yet effective, will not have a material impact on the Company’s consolidated financial statements.

ASU 2025-01 “Income Statement Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date” (“ASU 2025-01”) clarifies the effective date of Accounting Standards Update 2024-03 “Income Statement Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”) to stipulate that ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. ASU 2024-03 will be effective for the Company beginning January 1, 2027, for the Company’s annual financial statements on Form 10-K and January 1, 2028, for the Company’s quarterly financial statements on Form 10-Q and is not expected to have a significant impact on the Company’s consolidated financial statements.

ASU 2025-08 “Financial Instruments – Credit Losses (Topic 326): Purchased Loans” (“ASU 2025-08”) expands the use of the gross up-approach in ASC 326, Credit Losses, to “purchased seasoned loans,” which the guidance defines as loans, excluding purchased financial assets with credit deterioration, credit card receivables, debt securities, and trade receivables, that are (1) acquired in a business combination or (2) obtained through a transfer that is not a business combination or initially recognized through the consolidation of a variable interest entity, if certain seasoning criteria are met. This approach was previously only applied to purchased financial assets with credit deterioration. The guidance is

effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Entities are required to apply the guidance prospectively. Early adoption is permitted. The Company is currently in the process of evaluating this guidance.

ASU 2025-09 “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements” (ASU 2025-09”) amends certain aspects of the hedge accounting guidance in ASC 815, Derivatives and Hedging, to better reflect an entity’s risk management activities in the financial statements. The amendments are effective for public business entities for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. ASU 2025-09 will be effective for the Company on January 1, 2027, and is not expected to have a significant impact on the Company’s consolidated financial statements.

Investment securities Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model and quoted market prices
Individually evaluated loans

Individually evaluated loans: Fair values for individually evaluated loans are estimated using underlying collateral values, where applicable.

Interest rate swaps and floors

Interest rate swaps and floors:  Values of these instruments are obtained through an independent pricing source utilizing information which may include market observed quotations for swaps, market index rates, forward rates and rate volatility. Derivative contracts create exposure to interest rate movements as well as risks from the potential of non-performance of the counterparty.

Other real estate owned

Other real estate owned:  Other real estate owned ("OREO") represents properties that the Company has acquired through foreclosure by either accepting a deed in lieu of foreclosure, or by taking possession of assets that collateralized a loan, and former bank premises that are no longer used for operations or for future expansion. The Company reports OREO at the lower of cost or fair value less cost to sell, adjusted periodically based on a current appraisal. Write-downs and any gain or loss upon the sale of OREO is recorded in other noninterest income. OREO is reported in other assets on the consolidated balance sheet. At December 31, 2025, OREO had a carrying amount of $1.7 million and $0.7 million December 31, 2024. During the year ended December 31, 2024, one former community banking office with a carrying value of $711 thousand was transferred to OREO. In 2025, an additional former banking office with a carrying value of $221 thousand was transferred to OREO, and the Company acquired one commercial property through foreclosure. The commercial property had a recorded investment of $750 thousand that was included in OREO at December 31, 2025. Other real estate owned is classified within Level 3 in the fair value hierarchy based on appraisals, letters of intent or agreement of sale received from third parties.

v3.26.1
Summary of significant accounting policies (Tables)
12 Months Ended
Dec. 31, 2025
Summary of significant accounting policies  
Schedule of estimated useful life of related assets

Premises and leasehold improvements

  ​ ​ ​

7 – 40 years

Furniture, fixtures and equipment

 

3 – 10 years

Schedule of earnings per share

For the Years Ended December 31,

2025

2024

(Dollars in thousands, except per share data)

Basic  

Diluted  

Basic  

  ​ ​ ​

Diluted  

Net income

  ​ ​ ​

$

59,187

  ​ ​ ​

$

59,187

  ​ ​ ​

$

8,498

  ​ ​ ​

$

8,498

Average common shares outstanding

 

9,994,281

 

10,073,996

 

8,531,122

 

8,586,035

Earnings per share

$

5.92

$

5.88

$

1.00

$

0.99

v3.26.1
Investment securities (Tables)
12 Months Ended
Dec. 31, 2025
Investment securities  
Schedule of amortized cost and fair value of investment securities aggregated by investment category

December 31, 2025

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

 

(Dollars in thousands)

  ​ ​ ​

Cost  

  ​ ​ ​

Gains  

  ​ ​ ​

Losses  

  ​ ​ ​

Value  

 

Available for sale:

U.S. Treasury securities

$

32,125

$

$

1,127

$

30,998

State and municipals:

Taxable

 

68,618

22

7,018

 

61,622

Tax-exempt

 

132,586

 

429

7,898

 

125,117

Residential mortgage-backed securities:

U.S. government agencies

 

42,801

 

145

247

 

42,699

U.S. government-sponsored enterprises

 

174,223

 

962

 

15,105

 

160,080

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

 

1,789

 

 

19

 

1,770

Private collateralized mortgage obligations

48,007

766

289

48,484

Asset backed securities

16,544

23

300

16,267

Corporate debt securities

24,287

829

322

24,794

Negotiable certificates of deposit

727

5

732

Total available for sale

$

541,707

$

3,181

$

32,325

$

512,563

Held to maturity:

Tax-exempt state and municipals

$

10,812

$

4

$

620

$

10,196

Residential mortgage-backed securities:

U.S. government agencies

 

12,291

 

1,977

 

10,314

U.S. government-sponsored enterprises

 

48,944

 

6,656

 

42,288

Total held to maturity

$

72,047

$

4

$

9,253

$

62,798

  ​ ​ ​

December 31, 2024

 

Gross

  ​ ​ ​

Gross

Amortized

Unrealized

Unrealized

Fair

 

(Dollars in thousands)

  ​ ​ ​

Cost  

  ​ ​ ​

Gains  

  ​ ​ ​

Losses  

  ​ ​ ​

Value  

 

Available for sale:

U.S. Treasury securities

$

176,302

$

$

8,751

$

167,551

State and municipals:

 

Taxable

 

79,341

 

39

10,481

 

68,899

Tax-exempt

 

76,390

 

7

 

10,280

 

66,117

Residential mortgage-backed securities:

U.S. government agencies

 

1,403

 

1

 

28

 

1,376

U.S. government-sponsored enterprises

 

145,831

 

92

 

19,547

 

126,376

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1,927

71

1,856

Private collateralized mortgage obligations

38,366

358

152

38,572

Asset backed securities

23,586

66

400

23,252

Corporate debt securities

31,442

894

715

31,621

Negotiable certificates of deposit

700

9

709

Total available for sale

$

575,288

$

1,466

$

50,425

$

526,329

Held to maturity:

Tax-exempt state and municipals

$

10,846

$

$

1,103

$

9,743

Residential mortgage-backed securities:

U.S. government agencies

13,847

 

2,643

 

11,204

U.S. government-sponsored enterprises

 

53,491

 

9,286

 

44,205

Total held to maturity

$

78,184

$

$

13,032

$

65,152

Schedule of maturity distribution The following table summarizes the maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available for sale at December 31, 2025.

Amortized

 

Fair

(Dollars in thousands)

  ​ ​ ​

Cost

 

Value

Within one year

$

19,327

$

19,288

After one but within five years

 

61,699

 

59,180

After five but within ten years

 

66,838

 

60,978

After ten years

 

110,479

 

103,817

 

258,343

 

243,263

Mortgage-backed and other amortizing securities

 

283,364

 

269,300

Total

$

541,707

$

512,563

The maturity distribution of the amortized cost and fair value, of debt securities classified as held to maturity at December 31, 2025, is summarized as follows:

 

Amortized

Fair

(Dollars in thousands)

  ​ ​ ​

Cost 

  ​ ​ ​

Value  

After one but within five years

$

4,493

$

4,121

After five but within ten years

6,319

6,075

 

10,812

 

10,196

Mortgage-backed securities

 

61,235

 

52,602

Total

$

72,047

$

62,798

Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position

December 31, 2025

Less than
Twelve Months

Twelve Months
or Longer

Total

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

(Dollars in thousands)

Position

Fair Value

Losses

Position

Fair Value

Losses

Position

Fair Value

Losses

Securities available for sale

U.S. Treasury securities

8

$

30,998

$

1,127

8

$

30,998

$

1,127

State and municipals:

Taxable

64

59,002

7,018

64

59,002

7,018

Tax-exempt

37

$

35,137

$

519

87

63,245

7,379

124

98,382

7,898

Residential mortgage-backed securities:

U.S. government agencies

6

28,689

247

6

28,689

247

U.S. government-sponsored enterprises

3

8,989

60

34

71,288

15,045

37

80,277

15,105

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1

1,770

19

1

1,770

19

Other

8

14,534

96

11

8,000

193

19

22,534

289

Asset-backed securities

3

4,884

12

2

1,888

288

5

6,772

300

Corporate debt securities

2

1,491

9

8

7,451

313

10

8,942

322

Total

59

$

93,724

$

943

215

$

243,642

$

31,382

274

$

337,366

$

32,325

Securities Held to Maturity

U.S. government-sponsored enterprises

Tax-exempt

11

$

6,641

$

620

11

$

6,641

$

620

Residential mortgage-backed securities:

U.S. government agencies

3

10,314

1,977

3

10,314

1,977

U.S. government-sponsored enterprises

8

42,288

6,656

8

42,288

6,656

Total

22

$

59,243

$

9,253

22

$

59,243

$

9,253

December 31, 2024

Less than
Twelve Months

Twelve Months
or Longer

Total

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

Total #
in a loss

Unrealized

(Dollars in thousands)

Position

Fair Value

Losses

Position

Fair Value

Losses

Position

Fair Value

Losses

Securities available for sale

U.S. Treasury securities

38

$

167,551

$

8,751

38

$

167,551

$

8,751

State and municipals:

Taxable

2

$

1,097

$

6

64

55,712

10,475

66

56,809

10,481

Tax-exempt

6

1,874

41

91

62,329

10,239

97

64,203

10,280

Residential mortgage-backed securities:

U.S. government agencies

1

1,299

27

1

3

1

2

1,302

28

U.S. government-sponsored enterprises

29

40,886

622

31

68,732

18,925

60

109,618

19,547

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1

1,856

71

1

1,856

71

Private collateralized mortgage obligations

15

12,854

152

15

12,854

152

Asset-backed securities

2

2,659

11

1

1,939

389

3

4,598

400

Corporate debt securities

5

6,083

316

6

3,601

399

11

9,684

715

Total

60

$

66,752

$

1,175

233

$

361,723

$

49,250

293

$

428,475

$

50,425

Securities held to maturity

U.S. Government-sponsored enterprises

Tax-exempt

4

$

2,508

$

66

12

$

7,235

$

1,037

16

$

9,743

$

1,103

Residential mortgage-backed securities:

U.S. government agencies

4

11,204

2,643

4

11,204

2,643

U.S. government-sponsored enterprises

8

44,205

9,286

8

44,205

9,286

Total

4

$

2,508

$

66

24

$

62,644

$

12,966

28

$

65,152

$

13,032

Summary of unrealized and realized gains and losses

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

Net gains (losses) recognized during the period on equity securities

$

168

$

132

$

(11)

Less: net gains recognized during the period on equity securities sold during the period

 

 

157

 

Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date

$

168

$

(25)

$

(11)

v3.26.1
Loans, net and allowance for credit losses (Tables)
12 Months Ended
Dec. 31, 2025
Loans, net and allowance for credit losses  
Schedule of major classifications of loans outstanding

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

Commercial and industrial

$

667,948

$

648,102

Municipal

202,303

187,918

Real estate

Commercial

2,314,110

 

2,294,113

Residential

602,309

 

551,383

Total

2,916,419

2,845,496

Consumer

Indirect auto

93,742

117,914

Consumer other

17,496

 

14,955

Total

111,238

132,869

Equipment financing

168,988

179,120

Total

$

4,066,896

$

3,993,505

Schedule of major classifications of loans by past due status

  ​ ​ ​

December 31, 2025

 

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Greater

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Loans > 90

 

30-59 Days

60-89 Days

than 90

Total Past

Days and

 

(Dollars in thousands)

Past Due  

Past Due  

Days  

Due  

Current  

Total Loans  

Accruing  

 

Commercial and industrial

$

1,090

$

147

$

1,827

$

3,064

$

664,884

$

667,948

$

Municipal

202,303

202,303

Real estate:

Commercial

 

3,943

1,459

 

3,550

 

8,952

 

2,305,158

 

2,314,110

Residential

 

2,948

1,413

1,748

 

6,109

 

596,200

 

602,309

524

Consumer

 

2,527

500

 

776

 

3,803

 

107,435

 

111,238

 

Equipment financing

733

747

495

1,975

167,013

168,988

Total

$

11,241

$

4,266

$

8,396

$

23,903

$

4,042,993

$

4,066,896

$

524

  ​ ​ ​

December 31, 2024

 

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Greater

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Loans > 90

 

30-59 Days

60-89 Days

than 90

Total Past

Days and

 

(Dollars in thousands)

Past Due  

Past Due  

Days  

Due  

Current  

Total Loans  

Accruing  

 

Commercial and industrial

$

2,740

$

157

$

838

$

3,735

$

644,367

$

648,102

$

Municipal

187,918

187,918

Real estate:

Commercial

 

2,800

141

 

11,164

 

14,105

 

2,280,008

 

2,294,113

Residential

 

2,390

 

997

 

2,477

 

5,864

 

545,519

 

551,383

403

Consumer

 

2,393

 

539

 

492

 

3,424

 

129,445

 

132,869

 

55

Equipment financing

639

1,259

815

2,713

176,407

179,120

Total

$

10,962

$

3,093

$

15,786

$

29,841

$

3,963,664

$

3,993,505

$

458

Schedule of nonaccrual loans

December 31, 2025

Total

Nonaccrual with

Nonaccrual with

Nonaccrual

an Allowance for

no Allowance for

(Dollars in thousands)

  ​ ​ ​

Loans

Credit Losses

Credit Losses

Commercial and industrial

$

1,955

$

1,016

$

939

Municipal

Real estate:

Commercial

 

4,152

 

1,178

 

2,974

Residential

 

2,511

 

67

 

2,444

Consumer

 

1,048

 

 

1,048

Equipment financing

1,130

828

302

Total

$

10,796

$

3,089

$

7,707

December 31, 2024

Total

Nonaccrual with

Nonaccrual with

Nonaccrual

an Allowance for

no Allowance for

(Dollars in thousands)

  ​ ​ ​

Loans

Credit Losses

Credit Losses

Commercial and industrial

$

1,907

$

343

$

1,564

Municipal

Real estate:

Commercial

 

15,609

 

2,574

 

13,035

Residential

 

2,809

 

 

2,809

Consumer

 

744

 

 

744

Equipment financing

1,430

819

611

Total

$

22,499

$

3,736

$

18,763

Schedule of major classification of loans portfolio summarized by credit quality

As of December 31, 2025

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

Prior

  ​ ​ ​

Revolving Loans Amortized Cost Basis

  ​ ​ ​

Revolving Loans Converted to Term

  ​ ​ ​

Total

Commercial and industrial

Pass

$

81,246

$

69,710

$

57,789

$

53,915

$

38,907

$

94,729

$

251,834

$

100

$

648,230

Special mention

 

300

572

2,725

36

9

8,718

 

12,360

Substandard

 

111

400

579

664

30

5,574

7,358

Total commercial

 

81,546

 

70,393

 

58,189

 

57,219

 

39,607

 

94,768

 

266,126

 

100

 

667,948

Municipal

Pass

23,125

4,324

1,354

45,369

88,165

38,331

1,635

 

202,303

Special mention

 

Substandard

 

Total municipal

23,125

 

4,324

 

1,354

 

45,369

 

88,165

 

38,331

 

1,635

 

 

202,303

Commercial real estate

Pass

359,323

146,483

175,145

566,480

441,660

586,189

71

 

2,275,351

Special mention

573

1,508

2,174

9,149

 

13,404

Substandard

542

508

1,217

7,841

6,870

8,377

 

25,355

Total commercial real estate

360,438

146,991

176,362

575,829

450,704

603,715

71

2,314,110

Residential real estate

Pass

56,021

38,109

40,913

66,927

104,534

148,121

146,380

 

601,005

Special mention

Substandard

258

869

177

 

1,304

Total residential real estate

56,021

 

38,109

 

40,913

 

66,927

 

104,792

 

148,990

 

146,557

 

 

602,309

Consumer

Pass

25,443

19,746

24,017

21,716

9,574

3,153

6,493

 

110,142

Special mention

Substandard

158

161

137

338

177

113

12

 

1,096

Total consumer

 

25,601

 

19,907

 

24,154

 

22,054

 

9,751

 

3,266

 

6,505

 

 

111,238

Equipment financing

Pass

50,357

51,024

43,364

21,050

724

166,519

Special mention

129

12

141

Substandard

287

664

691

686

2,328

Total equipment financing

50,644

51,688

44,184

21,748

724

168,988

Total Loans

$

597,375

$

331,412

$

345,156

$

789,146

$

693,743

$

889,070

$

420,823

$

171

$

4,066,896

Gross charge-offs

Commercial and industrial

$

$

300

$

$

24

$

57

$

493

$

$

$

874

Municipal

Commercial real estate

853

95

948

Residential real estate

92

92

Consumer

195

361

342

116

55

1,069

Equipment financing

210

201

778

661

1,850

Total Gross charge-offs

$

210

$

696

$

1,139

$

1,972

$

173

$

643

$

$

$

4,833

As of December 31, 2024

(Dollars in thousands)

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

2020

  ​ ​ ​

Prior

  ​ ​ ​

Revolving Loans Amortized Cost Basis

  ​ ​ ​

Revolving Loans Converted to Term

  ​ ​ ​

Total

Commercial and industrial

Pass

$

61,657

$

69,329

$

83,123

$

64,488

$

29,950

$

91,906

$

199,737

$

68

$

600,258

Special mention

 

1,273

1,131

686

13,475

2,043

1,261

16,840

 

36,709

Substandard

 

300

854

904

85

597

8,395

11,135

Total commercial

 

62,930

 

70,760

 

84,663

 

78,867

 

32,078

 

93,764

 

224,972

 

68

 

648,102

Municipal

Pass

5,072

6,254

50,886

99,064

9,932

13,816

2,894

 

187,918

Special mention

 

Substandard

 

Total municipal

5,072

 

6,254

 

50,886

 

99,064

 

9,932

 

13,816

 

2,894

 

 

187,918

Commercial real estate

Pass

161,186

196,779

651,254

525,233

156,970

538,905

 

2,230,327

Special mention

1,231

46

2,724

4,361

1,635

24,951

 

34,948

Substandard

3,276

8,883

1,106

1,704

13,869

 

28,838

Total commercial real estate

162,417

200,101

662,861

530,700

160,309

577,725

2,294,113

Residential real estate

Pass

39,488

45,172

77,862

123,154

50,831

106,877

105,867

67

 

549,318

Special mention

 

Substandard

126

296

1,565

78

 

2,065

Total residential real estate

39,488

 

45,172

 

77,862

 

123,280

 

51,127

 

108,442

 

105,945

 

67

 

551,383

Consumer

Pass

28,872

38,223

38,668

18,963

4,132

2,495

853

 

132,206

Special mention

 

Substandard

65

156

209

124

43

64

2

 

663

Total consumer

 

28,937

 

38,379

 

38,877

 

19,087

 

4,175

 

2,559

 

855

 

 

132,869

Equipment financing

Pass

67,100

66,341

39,323

4,259

177,023

Special mention

261

125

386

Substandard

697

1,014

1,711

Total equipment financing

67,100

67,299

40,462

4,259

179,120

Total Loans

$

365,944

$

427,965

$

955,611

$

855,257

$

257,621

$

796,306

$

334,666

$

135

$

3,993,505

Gross charge-offs

Commercial and industrial

$

$

41

$

$

2

$

$

8

$

$

$

51

Municipal

Commercial real estate

282

282

Residential real estate

Consumer

90

245

255

183

32

87

892

Equipment Financing

551

109

660

Total gross charge-offs

$

90

$

837

$

364

$

185

$

32

$

377

$

$

$

1,885

Summary loans whose terms have been modified resulting in troubled debt restructurings

Other-Than-Insignificant Payment Delay

For the Years Ended December 31, 

2025

2024

Number
of

Amortized Cost

% of Total Class of Financing

Related

Number
of

Amortized Cost

% of Total Class of Financing

Related

(Dollars in thousands)

Loans

Basis

Receivable

Reserve

Loans

Basis

Receivable

Reserve

Modified Loans to Borrowers Experiencing Financial Difficulty:

Commercial and industrial

3

$

407

0.06%

$

0

1

$

408

0.06%

$

Total

3

$

407

$

0

1

$

408

$

Schedule of financing receivable, modified, financial effect

Other-Than-Insignificant Payment Delay

(Dollars in thousands)

No. of Loans

Balance

Financial Effect

For the Year Ended December 31, 2025

Modified Loans to Borrowers Experiencing Financial Difficulty:

Commercial and industrial

1

$

46

Extended term to reduce payment

Commercial and industrial

2

361

Converted to interest only for a fixed time period

Total

3

$

407

Schedule of financing receivable, modified, past due

As of December 31, 2025

(Dollars in thousands)

Current

30-89 Days Past Due

90 Days or More Past Due

Total

Modified Loans to Borrowers Experiencing Financial Difficulty:

Commercial and industrial

$

$165

$

$

242

$

407

Total

$

165

$

$

242

$

407

Schedule of information concerning nonaccrual loans by major loan classification

  ​ ​ ​

December 31, 2025

Real estate  

Equipment

(Dollars in thousands)

Commercial  

Municipal

Commercial  

Residential  

Consumer 

Financing

Total

Allowance for credit losses:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Beginning balance

$

6,004

$

1,072

$

21,804

$

4,924

$

2,540

$

5,432

$

41,776

Charge-offs

 

(874)

 

 

(948)

 

(92)

 

(1,069)

 

(1,850)

(4,833)

Recoveries

 

333

 

 

682

 

86

 

475

 

390

1,966

Provisions (Credits)

 

573

 

341

 

(1,540)

 

45

 

(187)

 

866

98

Ending balance

$

6,036

$

1,413

$

19,998

$

4,963

$

1,759

$

4,838

$

39,007

Ending balance: individually evaluated for impairment

 

404

 

 

451

 

78

 

 

399

1,332

Ending balance: collectively evaluated for impairment

$

5,632

$

1,413

$

19,547

$

4,885

$

1,759

$

4,439

$

37,675

Loans receivable:

Ending balance

$

667,948

$

202,303

$

2,314,110

$

602,309

$

111,238

$

168,988

$

4,066,896

Individually evaluated - collateral dependent - real estate

 

1,470

 

 

4,056

 

3,039

8,565

Individually evaluated - collateral dependent - non-real estate

485

1,153

1,638

Collectively evaluated for impairment

$

665,993

$

202,303

$

2,310,054

$

599,270

$

111,238

$

167,835

$

4,056,693

December 31, 2024

Real estate  

Equipment

 

(Dollars in thousands)

  ​ ​

Commercial 

  ​ ​

Municipal

  ​ ​

Commercial  

  ​ ​

Residential  

  ​ ​

Consumer  

  ​ ​

Financing

Total

Allowance for credit losses:

  ​ ​ ​

Beginning balance

$

2,272

$

788

$

14,153

$

3,782

$

900

$

$

21,895

Non PCD allowance for credit losses at acquisition

2,259

502

4,149

1,785

1,470

4,163

14,328

PCD allowance for credit losses at acquisition

337

71

371

468

320

274

1,841

Charge-offs

 

(51)

 

 

(282)

 

 

(892)

 

(660)

(1,885)

Recoveries

 

90

 

 

69

 

16

 

478

 

141

794

Provisions (Credits)

 

1,097

 

(289)

 

3,344

 

(1,127)

 

264

 

1,514

4,803

Ending balance

$

6,004

$

1,072

$

21,804

$

4,924

$

2,540

$

5,432

$

41,776

Ending balance: individually evaluated for impairment

 

325

 

 

190

 

 

 

434

949

Ending balance: collectively evaluated for impairment

$

5,679

$

1,072

$

21,614

$

4,924

$

2,540

$

4,998

$

40,827

Loans receivable:

Ending balance

$

648,102

$

187,918

$

2,294,113

$

551,383

$

132,869

$

179,120

$

3,993,505

Individually evaluated - collateral dependent - real estate

 

906

 

 

15,326

 

3,212

 

19,444

Individually evaluated - collateral dependent - non-real estate

1,007

284

1,429

2,720

Collectively evaluated for impairment

$

646,189

$

187,918

$

2,278,503

$

548,171

$

132,869

$

177,691

$

3,971,341

*See Note 2 - Business Combination and the initial provision for non-PCD loans.

December 31, 2023

Real estate  

(Dollars in thousands)

  ​ ​

Commercial  

  ​ ​

Municipal

  ​ ​

Commercial  

  ​ ​

Residential  

  ​ ​

Consumer  

  ​ ​

Total

Allowance for loan losses:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Beginning balance

$

4,365

$

1,247

$

17,915

$

3,072

$

873

$

27,472

Impact of adopting ASC 326

(1,683)

747

(3,344)

967

30

(3,283)

Beginning balance

2,682

1,994

14,571

4,039

903

24,189

Charge-offs

 

(58)

 

 

(2,598)

 

 

(369)

 

(3,025)

Recoveries

 

11

 

 

1

 

24

 

129

 

165

(Credits) provisions

 

(363)

 

(1,206)

 

2,179

 

(281)

 

237

 

566

Ending balance

$

2,272

$

788

$

14,153

$

3,782

$

900

$

21,895

Ending balance: individually evaluated for impairment

 

10

 

 

 

21

 

 

31

Ending balance: collectively evaluated for impairment

$

2,262

$

788

$

14,153

$

3,761

$

900

$

21,864

Loans receivable:

Ending balance

$

368,411

$

175,304

$

1,863,118

$

360,803

$

82,261

$

2,849,897

Individually evaluated - collateral dependent - real estate

7

 

2,974

 

1,749

 

4,730

Individually evaluated - collateral dependent - non-real estate

$

10

$

$

$

$

$

10

Collectively evaluated for impairment

$

368,394

$

175,304

$

1,860,144

$

359,054

$

82,261

$

2,845,157

Schedule of allowance for credit losses on off balance sheet commitments

(Dollars in thousands)

December 31, 2025

December 31, 2024

December 31, 2023

Beginning balance

$

880

$

43

$

179

Impact of adopting Topic 326

270

Merger related adjustments

880

Charge-off

(1)

Provision for (credit to) credit losses recorded in noninterest expense

426

(43)

(406)

Total allowance for credit losses on off balance sheet commitments

$

1,305

$

880

$

43

v3.26.1
Related party transactions (Tables)
12 Months Ended
Dec. 31, 2025
Related party transactions  
Schedule of related party transactions

Year Ended December 31, 

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

Balance, beginning of period

$

130,563

$

3,105

Additions, new loans and advances

30,989

128,916

Repayments and other reductions

(22,178)

(1,458)

Balance, end of period

$

139,374

130,563

v3.26.1
Off-balance sheet financial instruments (Tables)
12 Months Ended
Dec. 31, 2025
Off-balance sheet financial instruments  
Summary of contractual amounts of off-balance sheet commitments

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Commitments to extend credit

$

660,353

$

589,725

Unused portions of lines of credit

 

178,689

 

150,840

Standby letters of credit

 

54,970

 

60,353

$

894,012

$

800,918

v3.26.1
Premises and equipment, net (Tables)
12 Months Ended
Dec. 31, 2025
Premises and equipment, net  
Summary of premises and equipment

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Land

$

6,976

$

8,850

Premises and leasehold improvements

 

68,692

 

74,938

Right-of-use assets

17,797

12,302

Furniture, fixtures and equipment

 

32,894

 

30,237

Gross premises and equipment

 

126,359

 

126,327

Less: accumulated depreciation

 

47,863

 

53,044

Net premises and equipment

$

78,496

$

73,283

v3.26.1
Operating lease commitments and contingencies (Tables)
12 Months Ended
Dec. 31, 2025
Operating lease commitments and contingencies  
Summary of future minimum annual rent commitments under various operating leases

(Dollars in thousands)

2026

  ​ ​ ​

$

1,515

2027

 

1,448

2028

 

1,458

2029

 

1,416

2030

 

1,331

Thereafter

 

23,076

Total future minimum lease payments

30,244

Less amount representing interest

(11,805)

Present value of future minimum lease payments

$

18,439

v3.26.1
Goodwill and other intangibles (Tables)
12 Months Ended
Dec. 31, 2025
Goodwill and other intangibles  
Schedule of goodwill and other acquired intangible assets

December 31, 2025

Accumulated

Beginning

Impairment

Accumulated

Ending

(Dollars in thousands)

  ​ ​ ​

Balance

  ​ ​ ​

Additions

  ​ ​ ​

Charges

  ​ ​ ​

Amortization(1)

  ​ ​ ​

Balance

Goodwill

$

75,986

$

$

$

$

75,986

Total goodwill

$

75,986

$

$

$

$

75,986

Core deposit intangible

$

33,299

$

$

$

6,327

$

26,972

Wealth management customer list intangible

898

170

728

Total intangible assets, net

$

34,197

$

$

$

6,497

$

27,700

December 31, 2024

Accumulated

Beginning

Impairment

Year-to-Date

Ending

(Dollars in thousands)

Balance

Additions

Charges

Amortization(1)

Balance

Goodwill

$

63,370

$

12,616

$

$

$

75,986

Total goodwill

$

63,370

$

12,616

$

$

$

75,986

Core deposit intangible

$

$

36,629

$

$

3,330

$

33,299

Wealth management customer list intangible

988

90

898

Total intangible assets, net

$

$

37,617

$

$

3,420

$

34,197

(1)Core deposit intangible amortization is included in amortization of intangible assets in the consolidated statements of income and comprehensive income. Wealth management customer list intangible amortization is included in wealth management income on the consolidated statements of income and comprehensive income.
Summary of estimated amortization expense on intangible assets

At December 31, 2025, estimated future remaining amortization of the core deposit intangible and wealth management customer list intangible within the years ending December 31, are as follows:

(Dollars in thousands)

  ​ ​ ​

Core Deposit Intangible

Wealth Management Customer List Intangible

Total

2026

$

5,661

$

153

$

5,814

2027

 

4,995

135

 

5,130

2028

 

4,329

 

117

 

4,446

2029

 

3,663

 

99

 

3,762

2030

2,997

81

3,078

Thereafter

 

5,327

 

143

 

5,470

Total amortizing intangible

$

26,972

$

728

$

27,700

v3.26.1
Other assets (Tables)
12 Months Ended
Dec. 31, 2025
Other assets  
Schedule of components of other assets

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

Other real estate owned

$

1,682

$

738

Mortgage servicing rights (1)

 

1,211

 

1,304

Prepaid shares tax

 

253

 

1,304

Equity investments without readily determinable fair value

4,908

5,080

Prepaid pension

 

7,096

 

5,788

Prepaid expenses

7,813

7,031

Restricted equity securities (FHLB and ACBB)

12,457

10,220

Investment in low income housing partnerships

 

15,454

 

17,886

Interest rate swaps(2)

15,583

20,537

Other assets

4,220

5,031

Total

$

70,677

$

74,919

(1) The Company originates one-to-four family residential mortgage loans for sale in the secondary market with servicing rights retained. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $174.3 million at December 31, 2025, and $185.2 million at December 31, 2024.
(2)The balance of interest rate swaps represents the fair value of our commercial loan back-to-back swaps.
v3.26.1
Deposits (Tables)
12 Months Ended
Dec. 31, 2025
Deposits  
Summary of major components of interest-bearing and noninterest-bearing deposits

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

Interest-bearing deposits:

Money market accounts

$

989,230

$

936,239

Interest-bearing demand and NOW accounts

 

1,285,767

 

1,238,853

Savings accounts

 

497,523

 

492,180

Time deposits less than $250

 

477,115

 

620,725

Time deposits $250 or more

 

229,949

 

184,039

Total interest-bearing deposits

 

3,479,584

 

3,472,036

Noninterest-bearing deposits

 

954,485

 

935,516

Total deposits

$

4,434,069

$

4,407,552

Schedule of aggregate amounts of maturities for all time deposits

(Dollars in thousands)

  ​ ​ ​

2026

  ​ ​ ​

$

628,519

2027

 

47,131

2028

 

16,951

2029

 

6,603

2030

 

6,893

Thereafter

 

967

$

707,064

v3.26.1
Short-term borrowings (Tables)
12 Months Ended
Dec. 31, 2025
Short-term borrowings  
Summary of short-term borrowings

At and for the year ended December 31, 2025

Weighted

Weighted

 

Maximum

Average

Average

 

Ending

Average

Month-End

Rate for

Rate at End

 

(Dollars in thousands, except percents)

  ​ ​ ​

Balance 

  ​ ​ ​

Balance 

  ​ ​ ​

Balance 

  ​ ​ ​

the Year

  ​ ​ ​

of the Year

 

FHLB advances - Overnight

  ​ ​ ​

$

23,761

  ​ ​ ​

$

16,452

  ​ ​ ​

$

65,350

  ​ ​ ​

4.44

%  

3.76

%

Other borrowings

8,960

12,789

18,160

 

4.35

3.67

Total short-term borrowings

$

32,721

$

29,241

$

83,510

 

4.40

%  

3.74

%

At and for the year ended December 31, 2024

 

Weighted

Weighted

 

Maximum

Average

Average

 

Ending

Average

Month-End

Rate for

Rate at End

 

(Dollars in thousands, except percents)

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

the Year

  ​ ​ ​

of the Year

 

FHLB advances - Overnight

$

$

6,733

$

83,900

 

5.53

%

%

Federal Reserve Bank - BTFP

12,352

24,968

5.73

Other borrowings

15,900

18,035

25,050

5.27

4.34

Total short-term borrowings

$

15,900

$

37,120

$

133,918

5.48

%

4.34

%

At and for the year ended December 31, 2023

 

Weighted

Weighted

 

Maximum

Average

Average

 

Ending

Average

Month-End

Rate for

Rate at End

 

(Dollars in thousands, except percents)

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

Balance

  ​ ​ ​

the Year

  ​ ​ ​

of the Year

 

FHLB advances - Overnight

  ​ ​ ​

$

  ​ ​ ​

$

19,171

  ​ ​ ​

$

158,000

  ​ ​ ​

4.48

%  

%

Other borrowings

17,590

19,160

28,470

5.54

5.35

Total short-term borrowings

$

17,590

$

38,331

$

186,470

5.01

%

5.35

%

v3.26.1
Long-term debt (Tables)
12 Months Ended
Dec. 31, 2025
Long-term debt  
Schedule of long-term debt consisting of advances

Interest Rate 

  ​ ​ ​

  ​ ​ ​

 

(Dollars in thousands, except percents)

  ​ ​ ​

Fixed 

December 31, 2025

December 31, 2024

 

March 2025

4.37

%

$

$

10,000

December 2025

4.40

9,567

December 2025

4.36

20,000

March 2026

4.78

4,292

4,292

March 2026

4.20

15,000

15,000

May 2026

4.08

5,000

5,000

August 2026

3.98

12,047

October 2026

3.95

15,284

March 2027

3.51

12,198

June 2027

4.16

5,224

5,224

July 2027

4.01

21,773

August 2027

4.40

6,461

6,461

October 2027

5.29

2,617

3,941

October 2027

5.18

5,475

5,475

November 2027

3.61

14,937

March 2028

4.45

14,188

14,188

Total FHLB long-term debt

134,496

99,148

Less net fair value discount

(144)

(511)

Total long-term debt

$

134,352

$

98,637

Schedule of maturities of long-term debt

(Dollars in thousands)

2026

$

51,623

2027

68,685

2028

 

14,188

Total FHLB long-term debt

134,496

Less net fair value discount

(144)

Total long-term debt

$

134,352

v3.26.1
Fair value of financial instruments (Tables)
12 Months Ended
Dec. 31, 2025
Fair value of financial instruments  
Schedule of assets and liabilities measured at fair value on a recurring basis

At December 31, 2025

 

Fair Value Measurement Using

 

Quoted Prices in

Significant

Significant

 

Active Markets for

Other Observable

Unobservable

 

Identical Assets

Inputs

Inputs

 

(Dollars in thousands)

  ​ ​ ​

Amount

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

U.S. Treasury securities

  ​ ​ ​

$

30,998

  ​ ​ ​

$

30,998

  ​ ​ ​

$

  ​ ​ ​

$

U.S. government-sponsored enterprises

State and municipals:

Taxable

 

61,622

 

61,622

Tax-exempt

 

125,117

 

125,117

Residential mortgage-backed securities:

U.S. government agencies

 

42,699

 

42,699

U.S. government-sponsored enterprises

 

160,080

 

160,080

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

 

1,770

 

1,770

Private collateralized mortgage obligations

 

48,484

 

48,484

Asset backed securities

16,267

 

16,267

Corporate debt securities

24,794

23,806

988

Negotiable certificates of deposit

732

732

Common equity securities

2,598

2,598

Total investment securities

$

515,161

$

33,596

$

480,577

$

988

Interest rate swap-other assets

$

15,583

$

15,583

Interest rate swap-other liabilities

$

(15,345)

$

(15,345)

At December 31, 2024

 

Fair Value Measurement Using 

 

Quoted Prices in

Significant

Significant

 

Active Markets for

Other Observable

Unobservable

 

Identical Assets

Inputs

Inputs

 

(Dollars in thousands)

  ​ ​ ​

Amount

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

U.S. Treasury securities

  ​ ​ ​

$

167,551

  ​ ​ ​

$

167,551

  ​ ​ ​

$

  ​ ​ ​

$

U.S. government-sponsored enterprises

State and municipals:

Taxable

 

68,899

 

68,899

Tax-exempt

 

66,117

 

66,117

Residential mortgage-backed securities:

U.S. government agencies

 

1,376

 

1,376

U.S. government-sponsored enterprises

 

126,376

 

126,376

Commercial mortgage-backed securities:

U.S. government-sponsored enterprises

1,856

1,856

Private collateralized mortgage obligations

38,572

38,572

Asset backed securities

23,252

23,252

Corporate debt securities

31,621

26,999

4,622

Negotiable certificates of deposit

709

709

Common equity securities

 

2,430

2,430

Total investment securities

$

528,759

$

169,981

$

354,156

$

4,622

Interest rate swap-other assets

$

20,537

$

20,537

Interest rate swap-other liabilities

$

(20,151)

$

(20,151)

Schedule of assets and liabilities measured at fair value on a nonrecurring basis

Fair Value Measurement Using

Quoted Prices in

Significant

Significant

 

Active Markets for

Other Observable

Unobservable

 

(Dollars in thousands)

Identical Assets

Inputs

Inputs

 

December 31, 2025

  ​ ​ ​

Amount 

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

10,203

  ​ ​ ​

$

  ​ ​ ​

$

  ​ ​ ​

$

10,203

Other real estate owned

$

1,682

$

$

$

1,682

Fair Value Measurement Using 

 

Quoted Prices in

Significant Other

Significant

 

Active Markets for

Observable

Unobservable

 

(Dollars in thousands)

Identical Assets

Inputs

Inputs

 

December 31, 2024

  ​ ​ ​

Amount 

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

22,164

  ​ ​ ​

$

  ​ ​ ​

$

  ​ ​ ​

$

22,164

Other real estate owned

$

738

$

$

$

738

Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis

Quantitative Information about Level 3 Fair Value Measurements 

 

(Dollars in thousands, except percents)

Fair Value

Range

 

December 31, 2025

  ​ ​ ​

Estimate 

  ​ ​ ​

Valuation Techniques 

  ​ ​ ​

Unobservable Input 

  ​ ​ ​

(Weighted Average) 

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

10,203

  ​ ​ ​

Appraisal of collateral

  ​ ​ ​

Appraisal adjustments

  ​ ​ ​

0.0% to 100.0% (52.4)%

 

Liquidation expenses

 

0.0% to 12.2% (0.26)%

Other real estate owned

$

1,682

 

Appraisal of collateral

 

Appraisal adjustments

 

10.0% to 25.0% (16.9)%

 

Liquidation expenses

 

0.0% to 0.0% (0.0)%

Quantitative Information about Level 3 Fair Value Measurements 

 

(Dollars in thousands, except percents)

Fair Value

Range

 

December 31, 2024

  ​ ​ ​

Estimate 

  ​ ​ ​

Valuation Techniques 

  ​ ​ ​

Unobservable Input 

  ​ ​ ​

(Weighted Average) 

 

Loans individually evaluated for credit loss

  ​ ​ ​

$

22,164

  ​ ​ ​

Appraisal of collateral

  ​ ​ ​

Appraisal adjustments

  ​ ​ ​

3.0% to 111.9%  (59.6)%

 

Liquidation expenses

 

0.0% to 6.0% (5.6)%

Other real estate owned

$

738

 

Appraisal of collateral

 

Appraisal adjustments

 

0.0% to 10.0% (9.7)%

 

Liquidation expenses

 

3.0% to 6.0% (5.0)%

Schedule of carrying and fair values of financial instruments

Fair Value Hierarchy 

Quoted

  ​ ​

  ​ ​

 

Prices in

 

Active

Significant

 

Markets for

Other

Significant

 

Identical

Observable

Unobservable

 

(Dollars in thousands)

Carrying

Fair

Assets

Inputs

Inputs

 

December 31, 2025

  ​ ​ ​

Value 

  ​ ​ ​

Value 

  ​ ​ ​

(Level 1) 

  ​ ​ ​

(Level 2) 

  ​ ​ ​

(Level 3) 

 

Financial assets:

Cash and due from banks

$

268,984

$

268,984

$

268,984

$

$

Investment securities:

Available for sale

 

512,563

 

512,563

30,998

480,577

988

Held to maturity

 

72,047

 

62,798

 

62,798

Equity securities

2,598

2,598

2,598

Loans held for sale

 

805

 

805

 

805

Net loans

 

4,027,889

 

3,953,431

3,953,431

Accrued interest receivable

 

17,633

 

17,633

 

17,633

Mortgage servicing rights

 

1,211

 

2,099

 

2,099

Restricted equity securities (FHLB and other)

12,457

 

12,457

 

12,457

Other assets - interest rate swaps

 

15,583

 

15,583

 

15,583

Total

$

4,931,770

$

4,848,951

Financial liabilities:

Deposits

$

4,434,069

$

4,431,901

$

$

4,431,901

$

Short-term borrowings

32,721

32,904

32,904

Long-term debt

 

134,352

 

134,982

 

134,982

Subordinated debt

 

83,187

 

86,456

 

86,456

Junior subordinated debt

8,140

7,293

7,293

Accrued interest payable

6,792

 

6,792

6,792

Other liabilities - interest rate swaps

 

15,345

 

15,345

15,345

Total

$

4,714,606

$

4,715,673

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Fair Value Hierarchy 

 

Quoted

  ​ ​ ​

  ​ ​ ​

 

Prices in

 

Active

Significant

 

Markets for

Other

Significant

 

Identical

Observable

Unobservable

 

(Dollars in thousands)

Carrying

Fair

Assets

Inputs

Inputs

 

December 31, 2024

  ​ ​ ​

Value 

  ​ ​ ​

Value 

  ​ ​ ​

(Level 1) 

  ​ ​ ​

(Level 2) 

  ​ ​ ​

(Level 3) 

 

Financial assets:

Cash and due from banks

$

135,851

$

135,851

$

135,851

$

$

Investment securities:

Available for sale

 

526,329

 

526,329

167,551

354,156

4,622

Held to maturity

 

78,184

 

65,152

 

65,152

Equity securities

2,430

2,430

2,430

Loans held for sale

 

 

 

Net loans

 

3,951,729

 

3,830,062

3,830,062

Accrued interest receivable

 

15,632

 

15,632

 

15,632

Mortgage servicing rights

 

1,304

 

2,314

 

2,314

Restricted equity securities (FHLB and other)

 

10,220

 

10,220

 

10,220

Other assets - interest rate swaps

20,537

20,537

20,537

Total

$

4,742,216

$

4,608,527

Financial liabilities:

Deposits

$

4,407,552

$

4,404,117

$

$

4,404,117

$

Short-term borrowings

 

15,900

 

15,900

 

15,900

Long-term debt

 

98,637

 

98,875

 

98,875

Subordinated debt

33,000

32,506

32,506

Junior subordinated debt

8,039

8,167

8,167

Accrued interest payable

 

5,503

 

5,503

5,503

Other liabilities - interest rate swaps

20,151

20,151

20,151

Total

$

4,588,782

$

4,585,219

v3.26.1
Derivatives and hedging activities (Tables)
12 Months Ended
Dec. 31, 2025
Derivatives and hedging activities  
Schedule of amounts were recorded on the consolidated balance sheet related to cumulative basis adjustment for fair value hedges

Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included

Amortized Amount of the Hedged Assets/(Liabilities)

Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)

(Dollars in thousands)

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

AFS Securities (1)

$

139,219

$

155,731

$

303

$

239

Fixed Rate Loans (2)

50,195

195

Total

$

139,219

$

205,926

$

303

$

434

(1)Fixed Rate AFS Securities. These amounts include the amortized cost basis of closed portfolios of fixed rate assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At December 31, 2025, the amortized cost basis of the closed portfolios used in these hedging relationships was $139.2 million. The amounts of the designated hedged items were $75.0 million. At December 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $155.7 million. The amounts of the designated hedged items were $100.0 million.

(2)Fixed Rate Loan Assets. These amounts include the carrying value of fixed rate loan assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At December 31, 2025, and 2024, the principal value of the hedged item was $0 and $50.0 million, respectively.
Schedule of fair value of derivative financial instruments and balance sheet classification

Fair Values of Derivative Instruments

Derivative Assets

Derivative Liabilities

As of December 31, 2025 (1)

As of December 31, 2024 (1)

As of December 31, 2025 (1)

As of December 31, 2024 (1)

(Dollars in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Notional Amount

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments

Interest rate products

$

Other assets

$

Other assets

$

$

75,000

Other liabilities

$

329

Other liabilities

$

447

Total derivatives designated as hedging instruments

$

$

$

329

$

447

Derivatives not designated as hedging instruments

Interest rate products

$

368,468

Other assets

$

15,896

Other assets

$

21,005

$

368,468

Other liabilities

$

15,659

Other liabilities

$

20,619

Other contracts

34,021

Other assets

2

Other assets

1

5,826

Other liabilities

Other liabilities

Total derivatives not designated as hedging instruments

$

15,898

$

21,006

$

15,659

$

20,619

(1) The notional asset amount of interest rate swaps at December 31, 2025, was $368.5 million and $34.0 million for risk participation agreements. The notional asset amount of interest rate swaps at December 31, 2024, was $297.9 million and $24.7 million for risk participation agreements.

Schedule of effect of derivative financial instruments on Consolidated income and comprehensive income

Location and Amount of Gain or (Loss)

Recognized in Income on Fair Value and

Cash Flow Hedging Relationships

For the Year Ended December 31, 

2025

2024

2023

(Dollars in thousands)

  ​

Interest Income

  ​

  ​

Interest Income

  ​

  ​

Interest Income

Total amounts of income and expense line items presented in the statements of income and

comprehensive income in which the effects of fair value or cash flow hedges are recorded

$

(127)

$

(267)

$

142

The effects of fair value and cash flow hedging:

Gain or (loss) on fair value hedging relationships

Interest contracts

Hedged items

(131)

(899)

841

Derivatives designated as hedging instruments

4

632

(681)

in earnings based on an amortization approach

Gain or (loss) on cash flow hedging relationships

Interest contracts

Amount of (loss) reclassified from AOCI into income

(48)

Amount of gain reclassified from AOCI into income - Included Component

Amount of (loss) reclassified from AOCI into income - Excluded Component

$

$

$

(48)

Schedule of gain (loss) on derivative instruments not designated as hedging instruments

 

Amount of Gain or (Loss)

Amount of Gain or (Loss)

Amount of Gain

 

Recognized in

Recognized in

Recognized in

Location of Gain or (Loss)

 

Income on Derivatives

Income on Derivatives

Income on Derivatives

Recognized in Income

 

Year Ended

Year Ended

Year Ended

(Dollars in thousands)

  ​ ​ ​

on Derivatives

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

  ​ ​ ​

December 31, 2023

Derivatives not designated as hedging instruments:

Interest rate products

 

Noninterest income (expense)

$

(149)

$

(83)

$

(262)

Other contracts

Noninterest income (expense)

(122)

(7)

(6)

Total

 

$

(271)

$

(90)

$

(268)

Fee income

Noninterest income

$

1,256

$

368

$

652

Schedule of offsetting derivatives

Offsetting of Derivative Assets

as of December 31, 2025

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Assets

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

  ​

Assets

Balance Sheet

Balance Sheet

Instruments

Posted

Amount

Derivatives

$

15,896

$

$

15,896

$

$

8,960

$

6,936

Offsetting of Derivative Liabilities

as of December 31, 2025

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Liabilities

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

Liabilities

Balance Sheet

Balance Sheet

Instruments

Posted(1)

Amount

Derivatives

$

15,988

$

$

15,988

$

15,988

$

$

Offsetting of Derivative Assets

as of December 31, 2024

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Assets

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

Assets

Balance Sheet

Balance Sheet

Instruments

Posted

Amount

Derivatives

$

21,005

$

$

21,005

$

$

15,900

$

5,105

Offsetting of Derivative Liabilities

as of December 31, 2024

Gross Amounts Not Offset in the Balance Sheet

Gross

Net Amounts

Amounts of

Gross Amounts

of Liabilities

Recognized

Offset in the

presented in the

Financial

Cash Collateral

Net

(Dollars in thousands)

Liabilities

Balance Sheet

Balance Sheet

Instruments

Posted(1)

Amount

Derivatives

$

21,065

$

$

21,065

$

21,065

$

$

(1)Cash collateral of $2.2 million was paid as of December 31, 2025, but not presented as an offset above.
v3.26.1
Stock plans (Tables)
12 Months Ended
Dec. 31, 2025
Stock plans  
Schedule of activity related to restricted stock

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Nonvested, January 1

 

38,574

 

58,631

 

39,470

Assumed in merger

16,890

Granted shares

65,141

 

8,894

 

23,428

Vested shares

 

(24,663)

(31,067)

(16,791)

(Forfeited) surrendered shares

(3,942)

(14,774)

12,524

Nonvested, December 31

 

75,110

 

38,574

 

58,631

v3.26.1
Employee benefit plans (Tables)
12 Months Ended
Dec. 31, 2025
Employee benefit plans  
Summary of pension and postretirement life insurance plans

 

Pension Benefits 

 

(Dollars in thousands)

2025

2024

 

Change in benefit obligation:

  ​ ​ ​

  ​ ​ ​

Benefit obligation, beginning

$

12,744

$

13,845

Interest cost

 

661

 

634

Change in experience loss

 

103

 

77

Change in actuarial assumptions

 

252

 

(867)

Benefits paid

 

(950)

 

(945)

Benefit obligation, ending

 

12,810

 

12,744

Change in plan assets:

Fair value of plan assets, beginning

 

18,532

 

17,609

Actual return on plan assets

 

2,324

 

1,868

Employer contributions

 

 

Benefits paid

 

(950)

 

(945)

Fair value of plan assets, ending

 

19,906

 

18,532

Funded status at end of year

$

7,096

$

5,788

Schedule of amounts recognized in balance sheet

 

Pension Benefits 

 

(Dollars in thousands)

2025

2024

 

(Other assets)/other liabilities

  ​ ​ ​

$

(7,096)

  ​ ​ ​

$

(5,788)

  ​ ​ ​

Amounts recognized in the accumulated other comprehensive loss consist of:

Net actuarial gain

 

(2,178)

 

(2,852)

Deferred taxes

 

478

 

622

Net amount recognized

$

(1,700)

$

(2,230)

Schedule of components of net periodic benefit cost

Year Ended December 31, 

(Dollars in thousands)

2025

2024

Net periodic pension benefit:

  ​ ​ ​

  ​ ​ ​

Interest cost

$

661

$

634

Expected return on plan assets

 

(1,348)

 

(1,281)

Amortization of unrecognized net loss

 

52

 

141

Net periodic pension benefit:

$

(635)

$

(506)

Other changes in plan assets and benefit obligations recognized in other comprehensive income:

Net loss

 

662

 

634

Deferred tax

 

(145)

 

(138)

Total recognized in other comprehensive income

 

517

 

496

Total recognized in net period pension cost and other comprehensive income

$

(118)

$

(10)

Schedule of weighted-average assumptions used to determine benefit obligations and related expenses

 

Pension Benefits

 

2025

2024

2023

 

Discount rate:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Obligation

 

5.17

%

5.38

%  

4.73

%  

Expense

 

5.38

4.73

4.93

Expected long-term return on plan assets

 

7.50

%

7.50

%  

7.50

%  

Schedule of pension plan weighted-average asset allocations

December 31,

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Asset Category:

Cash and cash equivalents

 

16.1

%

1.4

%

Equity securities

 

20.2

50.9

Corporate bonds

 

42.3

29.0

U.S. government securities

 

21.4

18.7

 

100.0

%  

100.0

%

Schedule of fair value measurement of pension plan assets

  ​ ​ ​

December 31, 2025

 

  ​ ​ ​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

  ​ ​ ​

 

Active Markets

Significant

Significant

 

for Identical

Observable

Observable

 

Assets

Inputs

Inputs

 

(Dollars in thousands)

Total 

(Level 1) 

(Level 2) 

(Level 3) 

 

Cash and cash equivalents

$

3,102

$

3,102

$

 

$

Equity securities:

U.S. large cap

 

3,555

3,555

International

 

501

501

Fixed income securities:

U.S. Treasuries

 

3,514

3,514

U.S. government agencies

 

770

770

Corporate bonds

 

8,464

8,464

Total

$

19,906

$

7,158

$

12,748

$

  ​ ​ ​

December 31, 2024

  ​ ​ ​

  ​ ​ ​

Quoted Prices in

  ​ ​ ​

  ​ ​ ​

 

Active Markets

Significant

Significant

 

for Identical

Observable

Observable

 

Assets

Inputs

Inputs

 

(Dollars in thousands)

Total 

(Level 1) 

(Level 2) 

(Level 3) 

 

Cash and cash equivalents

$

255

$

255

$

 

$

Equity securities:

U.S. large cap

 

8,598

8,598

International

 

853

853

Fixed income securities:

U.S. Treasuries

 

1,667

1,667

U.S. government agencies

 

1,791

1,791

Corporate bonds

 

5,368

5,368

Total

$

18,532

$

9,706

$

8,826

$

Schedule of expected benefit payments

(Dollars in thousands)

  ​ ​ ​

Pension Benefits

 

2026

$

1,043

2027

 

1,049

2028

 

1,038

2029

 

1,021

2030

 

1,017

Thereafter

4,836

Total

$

10,004

v3.26.1
Income taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income taxes  
Schedule of current and deferred amounts of the provision for income taxes expense (benefit)

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Current tax provision

Federal

$

7,007

$

3,299

$

3,853

State

1,326

320

Total current tax provision

8,333

3,619

3,853

Deferred tax provision (benefit)

Federal

4,655

(3,449)

1,268

State

59

(200)

Total deferred tax provision (benefit)

 

4,714

(3,649)

1,268

Total income tax expense (benefit)

$

13,047

$

(30)

$

5,121

Schedule of the components of the net deferred tax asset

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

 

Deferred tax assets:

Allowance for credit losses

$

8,706

$

9,217

Lease liability

4,043

2,774

Defined benefit plan

 

1,544

 

1,280

Deferred compensation

 

1,015

 

1,046

Investment securities available for sale

6,391

10,681

Purchase accounting

5,625

9,084

Built-in loss carryforward

7,371

7,331

Other

 

1,294

 

1,285

Total

 

35,989

 

42,698

Deferred tax liabilities:

Lease right-of-use assets

3,902

2,684

Premises and equipment, net

 

2,639

 

1,974

Deferred loan costs

396

467

Accrued compensation

 

1,632

 

803

Other

 

865

 

1,082

Total

 

9,434

 

7,010

Net deferred tax asset

$

26,555

$

35,688

Schedule of the reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate

2025

2024

2023

(Dollars in thousands, except percents)

  ​ ​ ​

Amount

  ​ ​ ​

%

  ​ ​ ​

Amount

  ​ ​ ​

%

  ​ ​ ​

Amount

%

 

Federal provision for income tax at statutory rate

$

15,169

21.00

%

$

1,778

21.00

%

$

6,825

21.00

%

Increase (decrease) resulting from:

State income tax, net of federal benefit(1)

1,094

1.51

95

1.16

397

1.22

Tax credit, net of amortization(2)

 

(1,285)

(1.78)

(631)

(7.45)

(755)

(2.32)

Nontaxable or nondeductible items

Tax-exempt interest income, net

 

(1,591)

(2.20)

 

(1,237)

(14.61)

 

(1,057)

(3.25)

Income from bank owned life insurance

 

(429)

(0.59)

 

(360)

(4.25)

 

(221)

(0.68)

Nondeductible transaction costs

 

206

2.43

 

179

0.55

Other, net

 

89

0.12

 

119

1.36

 

(247)

(0.76)

Total tax provision (benefit)

$

13,047

18.06

%

$

(30)

(0.36)

%

$

5,121

15.76

%

(1)State taxes in New Jersey, New York, and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.
(2)Low income housing tax credits are presented net of the related proportional amortization.
Schedule of Income taxes paid

(Dollars in thousands)

  ​ ​ ​

2025

2024

  ​ ​ ​

2023

 

Federal

$

6,700

$

1,480

$

3,075

State

New York

(10)

124

47

New Jersey

300

100

340

Pennsylvania

414

Other States

160

150

$

7,564

$

1,854

$

3,462

v3.26.1
Parent Company financial statements (Tables)
12 Months Ended
Dec. 31, 2025
Parent Company financial statements  
CONDENSED BALANCE SHEETS

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

 

Assets:

Cash and cash equivalents

$

2,245

$

1,151

Equity securities

1,794

1,657

Investment in bank subsidiary

 

599,582

 

499,446

Due from subsidiaries

505

486

Other assets

 

7,504

 

7,813

Total assets

$

611,630

$

510,553

Liabilities and Stockholders’ Equity:

Subordinated debt

$

83,187

$

33,000

Junior subordinated debt

8,140

8,039

Accrued interest payable

320

177

Other liabilities

136

387

Stockholders’ equity

 

519,847

 

468,950

Total liabilities and stockholders’ equity

$

611,630

$

510,553

CONDENSED STATEMENTS OF INCOME

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Income:

Dividends from subsidiaries

$

30,642

$

20,593

$

20,158

Other income

155

105

4

Gains (losses) on equity securities

 

137

 

130

 

(11)

Total income

 

30,934

 

20,828

 

20,151

Expense:

Acquisition related expenses

3

1,877

1,580

Interest expense on subordinated debt

5,712

2,189

1,774

Other expenses

 

1,745

 

1,551

 

1,538

Total expenses

 

7,460

 

5,617

 

4,892

Income before taxes and undistributed income

 

23,474

 

15,211

 

15,259

Income tax benefit

(1,581)

 

(1,464)

 

(857)

Income before undistributed income of subsidiaries

 

25,055

 

16,675

 

16,116

Equity in undistributed income of subsidiaries (distributions in excess of net income)

 

34,132

 

(8,177)

 

11,264

Net income

$

59,187

$

8,498

$

27,380

CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Cash flows from operating activities:

Net income

$

59,187

$

8,498

$

27,380

Adjustments:

Amortization expense related to acquired borrowings

101

47

Amortization of subordinated debt issuance costs

237

Net (gains) losses on investment securities

 

(137)

 

(130)

 

11

(Undistributed net income of subsidiaries) distributions in excess of net income

 

(34,132)

 

8,177

 

(11,264)

Decrease (increase) in other assets

 

118

 

(1,430)

359

(Decrease) increase in other liabilities

 

(108)

 

1,252

 

Stock based compensation

 

348

 

786

 

888

Net cash provided by operating activities

 

25,614

 

17,200

 

17,374

Cash flows from investing activities:

Purchases of equity investments without readily determinable fair value

(328)

(802)

Cash balance acquired in merger, net of cash outlay

1,091

Investment in bank subsidiary

(50,000)

Proceeds from sales/calls of equity securities

500

1,567

Net cash (used in) provided by investing activities

 

(49,828)

 

1,856

 

Cash flows from financing activities:

Retirement of common stock

 

(5,886)

Proceeds from the issuance of subordinated debt, net of issuance costs

82,950

Repayment of subordinated debt

(33,000)

Cash dividends paid

 

(24,642)

 

(18,093)

 

(11,659)

Net cash provided by (used in) financing activities

 

25,308

 

(18,093)

 

(17,545)

Increase (decrease) in cash and cash equivalents

 

1,094

 

963

 

(171)

Cash and cash equivalents at beginning of year

 

1,151

 

188

 

359

Cash and cash equivalents at end of year

$

2,245

$

1,151

$

188

v3.26.1
Regulatory matters (Tables)
12 Months Ended
Dec. 31, 2025
Regulatory matters  
Schedule of actual capital ratios and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions

December 31, 2025

 

Minimum to be Well

 

Capitalized under

 

Minimum For Capital

Prompt Corrective

 

Actual 

Adequacy Purposes 

Action Provisions 

 

(Dollars in thousands, except percents)

Amount 

Ratio 

Amount 

Ratio 

Amount 

Ratio 

 

Common equity Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

$

440,852

11.03

%  

$

179,784

 

4.50

%  

NA

NA

Bank

 

520,587

13.06

 

179,427

 

4.50

$

259,172

6.50

%

Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

450,852

11.28

239,712

 

6.00

NA

NA

Bank

 

520,587

13.06

 

239,236

 

6.00

318,981

8.00

Total capital to risk-weighted assets:

Company

 

571,887

14.31

 

319,617

 

8.00

NA

NA

Bank

 

558,435

14.01

 

318,981

 

8.00

 

398,726

10.00

Tier 1 capital to average assets:

Company

 

450,852

8.84

 

204,039

 

4.00

NA

NA

Bank

520,587

10.22

203,726

 

4.00

254,658

5.00

NA = not applicable

December 31, 2024

 

Minimum to be Well

 

Capitalized under

 

Minimum For Capital

Prompt Corrective

 

Actual 

Adequacy Purposes 

Action Provisions 

 

(Dollars in thousands, except percents)

Amount 

Ratio 

Amount 

Ratio 

Amount 

Ratio 

 

Common equity Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

$

399,461

 

10.16

%  

$

176,971

 

4.50

%  

NA

NA

Bank

 

429,958

 

10.95

 

176,640

 

4.50

$

255,147

 

6.50

%

Tier 1 capital to risk-weighted assets:

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Company

409,461

 

10.41

235,962

 

6.00

NA

NA

Bank

 

429,958

 

10.95

 

235,520

 

6.00

314,027

 

8.00

Total capital to risk-weighted assets:

Company

 

485,117

 

12.34

 

314,616

 

8.00

NA

NA

Bank

 

472,614

 

12.04

 

314,027

 

8.00

 

392,534

 

10.00

Tier 1 capital to average assets:

Company

 

409,461

 

7.97

 

205,493

 

4.00

NA

NA

Bank

429,958

 

8.37

205,431

 

4.00

256,788

 

5.00

NA = not applicable

v3.26.1
Accumulated Other Comprehensive Loss (Tables)
12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Loss  
Schedule of components of accumulated other comprehensive loss

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

 

Net unrealized loss on investment securities available for sale

$

(29,144)

$

(48,959)

Income tax benefit

 

(6,390)

 

(10,681)

Net of income taxes

 

(22,754)

 

(38,278)

Benefit plan adjustments

 

(2,178)

 

(2,852)

Income tax benefit

 

(478)

 

(622)

Net of income taxes

 

(1,700)

 

(2,230)

Derivative adjustments

 

(303)

 

(239)

Income tax benefit

 

(66)

 

(52)

Net of income taxes

 

(237)

 

(187)

Accumulated other comprehensive loss

$

(24,691)

$

(40,695)

Schedule of other comprehensive income and related tax effects

(Dollars in thousands)

  ​ ​ ​

2025

  ​ ​ ​

2024

2023

Unrealized gain on investment securities available for sale

$

17,574

$

2,569

$

14,804

Net loss (gain) on the sale of investment securities available for sale (1)

2,241

(1)

(81)

Other comprehensive income on available for sale debt securities

19,815

2,568

14,723

Benefit plans:

Amortization of actuarial loss (2)

52

141

194

Actuarial gain

622

1,377

935

Net change in benefit plan liabilities

 

674

 

1,518

 

1,129

Net change in derivatives

(64)

632

(824)

Other comprehensive income before taxes

20,425

4,718

 

15,028

Income tax expense

 

4,421

 

1,062

 

3,043

Other comprehensive income

$

16,004

$

3,656

$

11,985

(1)Represents amounts reclassified out of accumulated comprehensive income (loss) and included in (losses) gains on sale of investment securities on the consolidated statements of income and comprehensive income.
(2)Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 18 included in these consolidated financial statements.
v3.26.1
Summary of significant accounting policies - Nature of operations and Basis of presentation (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Feb. 19, 2026
USD ($)
Jan. 30, 2026
$ / shares
Jan. 07, 2026
USD ($)
Dec. 31, 2025
USD ($)
Office
$ / shares
Dec. 31, 2024
$ / shares
Dec. 31, 2023
$ / shares
Summary of significant accounting policies            
Number of full-service community banking offices | Office       40    
Reclassification of prior period items amounts effect on net income       $ 0    
Cash dividends declared (in dollars per share) | $ / shares       $ 2.47 $ 2.06 $ 1.64
Subsequent events            
Summary of significant accounting policies            
Sold mortgage backed with aggregate book value $ 31,900          
Pre tax gain 500          
Tax exempt municipal securities 16,000          
Support commercial loan growth $ 16,000          
111 East Market Street, Wilkes Barre, Luzerne County, Pennsylvania | Subsequent events            
Summary of significant accounting policies            
Acquired property     $ 1,400      
2026 Q1 dividend | Subsequent events            
Summary of significant accounting policies            
Dividend declared date   Jan. 30, 2026        
Cash dividends declared (in dollars per share) | $ / shares   $ 0.625        
Dividend payable date   Mar. 13, 2026        
Dividend record date   Feb. 27, 2026        
v3.26.1
Summary of significant accounting policies - Investment securities (Details) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Summary of significant accounting policies    
Securities classified as trading $ 0 $ 0
v3.26.1
Summary of significant accounting policies - Loans, net (Details)
12 Months Ended
Dec. 31, 2025
Commercial Real Estate  
Accounts, Notes, Loans and Financing Receivable  
Maximum loan to value percentage 80.00%
Residential Mortgage | Maximum  
Accounts, Notes, Loans and Financing Receivable  
Maximum amortization period 30 years
v3.26.1
Summary of significant accounting policies - Off-balance sheet financial instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Off-balance sheet financial instruments        
Off-balance sheet liability $ 1,305 $ 880 $ 43 $ 179
Other Liabilities.        
Off-balance sheet financial instruments        
Off-balance sheet liability $ 1,300 $ 900    
v3.26.1
Summary of significant accounting policies - Nonperforming assets (Details)
12 Months Ended
Dec. 31, 2025
Summary of significant accounting policies  
Non performing loans past due period for Non-accrual status 90 days
Minimum contractual terms of a loan 6 months
v3.26.1
Summary of significant accounting policies - Adoption of new accounting standard (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Summary of significant accounting policies    
Financing receivable, accrued interest, after allowance for credit loss $ 14.7 $ 13.2
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest Receivable Interest Receivable
Accrued interest receivable on available of sale securities $ 3.0 $ 3.0
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest Receivable Interest Receivable
Accrued interest receivable on held to maturity securities $ 2.4 $ 2.4
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest Receivable Interest Receivable
v3.26.1
Summary of significant accounting policies - Premises, equipment and lease commitments (Details)
Dec. 31, 2025
Minimum | Premises and leasehold improvements  
Premises and equipment, net  
Property, plant and equipment, estimated useful life 7 years
Minimum | Furniture, fixtures and equipment  
Premises and equipment, net  
Property, plant and equipment, estimated useful life 3 years
Maximum | Premises and leasehold improvements  
Premises and equipment, net  
Property, plant and equipment, estimated useful life 40 years
Maximum | Furniture, fixtures and equipment  
Premises and equipment, net  
Property, plant and equipment, estimated useful life 10 years
v3.26.1
Summary of significant accounting policies - Goodwill and other intangible assets, net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill    
Impairment losses on intangible assets $ 0 $ 0
Maximum    
Goodwill    
Finite useful life of intangible assets 10 years  
v3.26.1
Summary of significant accounting policies - Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Summary of significant accounting policies      
Income tax benefit recognition threshold 50.00%    
Unrecognized tax benefit or accrued interest and penalties $ 0 $ 0 $ 0
v3.26.1
Summary of significant accounting policies - Earnings per share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Basic earnings per share      
Net income (loss), Basic $ 59,187 $ 8,498  
Average common shares outstanding - Basic 9,994,281 8,531,122 7,107,908
Earnings (loss) per share - Basic $ 5.92 $ 1 $ 3.85
Diluted earnings per share      
Net income (loss), Diluted $ 59,187 $ 8,498  
Average common shares outstanding - Diluted 10,073,996 8,586,035 7,151,471
Earnings (loss) per share - Diluted $ 5.88 $ 0.99 $ 3.83
v3.26.1
Business Combinations - Merger with FNCB Bancorp Inc. (Details) - USD ($)
12 Months Ended
Jul. 01, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combinations        
Goodwill   $ 75,986,000 $ 75,986,000  
Number of reporting segments   1    
Acquisition related expenses   $ 236,000 $ 16,200,000 $ 1,816,000
FNCB        
Business Combinations        
Number of shares issued on conversion for each share as per merger (in shares) 0.146      
Total purchase price consideration $ 133,700,000      
Number of shares issued as consideration (in shares) 2,935,456      
Closing share price (in dollars per share) $ 45.54      
Goodwill $ 12,600,000      
v3.26.1
Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Investment Securities    
Available for sale, Amortized Cost $ 541,707 $ 575,288
Available for sale, Gross Unrealized Gains 3,181 1,466
Available for sale, Gross Unrealized Losses 32,325 50,425
Available for sale, Fair Value 512,563 526,329
Held to maturity, Amortized Cost 72,047 78,184
Held to maturity, Gross Unrealized Gains 4  
Held to maturity, Gross Unrealized Losses 9,253 13,032
Held to maturity, Fair Value 62,798 65,152
U.S. Treasury securities    
Investment Securities    
Available for sale, Amortized Cost 32,125 176,302
Available for sale, Gross Unrealized Losses 1,127 8,751
Available for sale, Fair Value 30,998 167,551
State and municipals, Taxable    
Investment Securities    
Available for sale, Amortized Cost 68,618 79,341
Available for sale, Gross Unrealized Gains 22 39
Available for sale, Gross Unrealized Losses 7,018 10,481
Available for sale, Fair Value 61,622 68,899
State and municipals, Tax-exempt    
Investment Securities    
Available for sale, Amortized Cost 132,586 76,390
Available for sale, Gross Unrealized Gains 429 7
Available for sale, Gross Unrealized Losses 7,898 10,280
Available for sale, Fair Value 125,117 66,117
Held to maturity, Amortized Cost 10,812 10,846
Held to maturity, Gross Unrealized Gains 4  
Held to maturity, Gross Unrealized Losses 620 1,103
Held to maturity, Fair Value 10,196 9,743
Residential mortgage-backed securities, U.S. government agencies    
Investment Securities    
Available for sale, Amortized Cost 42,801 1,403
Available for sale, Gross Unrealized Gains 145 1
Available for sale, Gross Unrealized Losses 247 28
Available for sale, Fair Value 42,699 1,376
Held to maturity, Amortized Cost 12,291 13,847
Held to maturity, Gross Unrealized Losses 1,977 2,643
Held to maturity, Fair Value 10,314 11,204
Residential mortgage-backed securities, U.S. government-sponsored enterprises    
Investment Securities    
Available for sale, Amortized Cost 174,223 145,831
Available for sale, Gross Unrealized Gains 962 92
Available for sale, Gross Unrealized Losses 15,105 19,547
Available for sale, Fair Value 160,080 126,376
Held to maturity, Amortized Cost 48,944 53,491
Held to maturity, Gross Unrealized Losses 6,656 9,286
Held to maturity, Fair Value 42,288 44,205
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises    
Investment Securities    
Available for sale, Amortized Cost 1,789 1,927
Available for sale, Gross Unrealized Losses 19 71
Available for sale, Fair Value 1,770 1,856
Private collateralized mortgage obligations    
Investment Securities    
Available for sale, Amortized Cost 48,007 38,366
Available for sale, Gross Unrealized Gains 766 358
Available for sale, Gross Unrealized Losses 289 152
Available for sale, Fair Value 48,484 38,572
Asset backed securities    
Investment Securities    
Available for sale, Amortized Cost 16,544 23,586
Available for sale, Gross Unrealized Gains 23 66
Available for sale, Gross Unrealized Losses 300 400
Available for sale, Fair Value 16,267 23,252
Corporate debt securities    
Investment Securities    
Available for sale, Amortized Cost 24,287 31,442
Available for sale, Gross Unrealized Gains 829 894
Available for sale, Gross Unrealized Losses 322 715
Available for sale, Fair Value 24,794 31,621
Negotiable certificates of deposit    
Investment Securities    
Available for sale, Amortized Cost 727 700
Available for sale, Gross Unrealized Gains 5 9
Available for sale, Fair Value $ 732 $ 709
v3.26.1
Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Investment securities    
Within one year, Amortized Cost $ 19,327  
After one but within five years, Amortized Cost 61,699  
After five but within ten years, Amortized Cost 66,838  
After ten years, Amortized Cost 110,479  
Available for sale securities, Amortized Cost 258,343  
Mortgage-backed and other amortizing securities, Amortized Cost 283,364  
Available for sale, Amortized Cost 541,707 $ 575,288
Within one year, Fair Value 19,288  
After one but within five years, Fair Value 59,180  
After five but within ten years, Fair Value 60,978  
After ten years, Fair Value 103,817  
Available for sale securities, Fair Value 243,263  
Mortgage-backed and other amortizing securities, Fair Value 269,300  
Available-for-sale, Fair Value, Total $ 512,563 $ 526,329
v3.26.1
Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Amortized Cost of Held-to-maturity Securities    
Amortized Cost, After one but within five years, Held to maturity $ 4,493  
Amortized Cost, After five but within ten years, Held to maturity 6,319  
Amortized Cost, Held to maturity 10,812  
Amortized Cost, Mortgage-backed securities, Held to maturity 61,235  
Held to maturity, Amortized Cost 72,047 $ 78,184
Fair Value of Held-to-maturity Securities    
Fair Value, After one but within five years, Held to maturity 4,121  
Fair Value, After five but within ten years, Held to maturity 6,075  
Fair Value, Held to maturity 10,196  
Fair Value, Mortgage-backed securities, Held to maturity 52,602  
Held to maturity, Fair Value $ 62,798 $ 65,152
v3.26.1
Investment securities - Pledged Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Available-for-sale and Held-to-maturity securities    
Debt Securities, Available-for-Sale, Restriction Type [Extensible Enumeration] Asset Pledged as Collateral [Member] Asset Pledged as Collateral [Member]
Collateral Pledged    
Available-for-sale and Held-to-maturity securities    
Carrying value of securities pledged $ 381.8 $ 441.5
U.S. government-sponsored enterprises    
Available-for-sale and Held-to-maturity securities    
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer 10.00%  
v3.26.1
Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
security
Dec. 31, 2024
USD ($)
security
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security 59 60
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 215 233
Total, Available-for-sale, Number of Securities in a Loss Position | security 274 293
Available-for-sale Debt Securities, Less than 12 Months, Fair Value $ 93,724 $ 66,752
Available-for-sale Debt Securities, 12 Months or More, Fair Value 243,642 361,723
Available-for-sale Debt Securities, Total 337,366 428,475
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months 943 1,175
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 31,382 49,250
Available-for-sale Debt Securities Unrealized losses, Total $ 32,325 $ 50,425
Held to Maturity, Debt Securities    
Held to Maturity, Less Than 12 Months, Number of Securities in a Loss Position | security   4
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position | security 22 24
Total, Held to Maturity, Number of Securities in a Loss Position | security 22 28
Held-to-maturity Debt (HTM) Securities, Less than 12 Months   $ 2,508
Held-to-maturity Debt (HTM) Securities, 12 months or More $ 59,243 62,644
Held-to-maturity Debt (HTM) Securities, Total 59,243 65,152
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Less than 12 Months   66
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More 9,253 12,966
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total $ 9,253 $ 13,032
U.S. Treasury securities    
Available-for-sale Debt Securities    
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 8 38
Total, Available-for-sale, Number of Securities in a Loss Position | security 8 38
Available-for-sale Debt Securities, 12 Months or More, Fair Value $ 30,998 $ 167,551
Available-for-sale Debt Securities, Total 30,998 167,551
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 1,127 8,751
Available-for-sale Debt Securities Unrealized losses, Total $ 1,127 $ 8,751
State and municipals, Taxable    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security   2
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 64 64
Total, Available-for-sale, Number of Securities in a Loss Position | security 64 66
Available-for-sale Debt Securities, Less than 12 Months, Fair Value   $ 1,097
Available-for-sale Debt Securities, 12 Months or More, Fair Value $ 59,002 55,712
Available-for-sale Debt Securities, Total 59,002 56,809
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months   6
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 7,018 10,475
Available-for-sale Debt Securities Unrealized losses, Total $ 7,018 $ 10,481
State and municipals, Tax-exempt    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security 37 6
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 87 91
Total, Available-for-sale, Number of Securities in a Loss Position | security 124 97
Available-for-sale Debt Securities, Less than 12 Months, Fair Value $ 35,137 $ 1,874
Available-for-sale Debt Securities, 12 Months or More, Fair Value 63,245 62,329
Available-for-sale Debt Securities, Total 98,382 64,203
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months 519 41
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 7,379 10,239
Available-for-sale Debt Securities Unrealized losses, Total $ 7,898 $ 10,280
Residential mortgage-backed securities, U.S. government agencies    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security 6 1
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security   1
Total, Available-for-sale, Number of Securities in a Loss Position | security 6 2
Available-for-sale Debt Securities, Less than 12 Months, Fair Value $ 28,689 $ 1,299
Available-for-sale Debt Securities, 12 Months or More, Fair Value   3
Available-for-sale Debt Securities, Total 28,689 1,302
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months 247 27
Available-for-sale Debt Securities Unrealized losses, 12 Months or More   1
Available-for-sale Debt Securities Unrealized losses, Total $ 247 $ 28
Held to Maturity, Debt Securities    
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position | security 3 4
Total, Held to Maturity, Number of Securities in a Loss Position | security 3 4
Held-to-maturity Debt (HTM) Securities, 12 months or More $ 10,314 $ 11,204
Held-to-maturity Debt (HTM) Securities, Total 10,314 11,204
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More 1,977 2,643
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total $ 1,977 $ 2,643
Residential mortgage-backed securities, U.S. government-sponsored enterprises    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security 3 29
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 34 31
Total, Available-for-sale, Number of Securities in a Loss Position | security 37 60
Available-for-sale Debt Securities, Less than 12 Months, Fair Value $ 8,989 $ 40,886
Available-for-sale Debt Securities, 12 Months or More, Fair Value 71,288 68,732
Available-for-sale Debt Securities, Total 80,277 109,618
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months 60 622
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 15,045 18,925
Available-for-sale Debt Securities Unrealized losses, Total $ 15,105 $ 19,547
Held to Maturity, Debt Securities    
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position | security 8 8
Total, Held to Maturity, Number of Securities in a Loss Position | security 8 8
Held-to-maturity Debt (HTM) Securities, 12 months or More $ 42,288 $ 44,205
Held-to-maturity Debt (HTM) Securities, Total 42,288 44,205
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More 6,656 9,286
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total $ 6,656 $ 9,286
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises    
Available-for-sale Debt Securities    
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 1 1
Total, Available-for-sale, Number of Securities in a Loss Position | security 1 1
Available-for-sale Debt Securities, 12 Months or More, Fair Value $ 1,770 $ 1,856
Available-for-sale Debt Securities, Total 1,770 1,856
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 19 71
Available-for-sale Debt Securities Unrealized losses, Total $ 19 $ 71
Private collateralized mortgage obligations    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security   15
Total, Available-for-sale, Number of Securities in a Loss Position | security   15
Available-for-sale Debt Securities, Less than 12 Months, Fair Value   $ 12,854
Available-for-sale Debt Securities, Total   12,854
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months   152
Available-for-sale Debt Securities Unrealized losses, Total   $ 152
Asset backed securities    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security 3 2
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 2 1
Total, Available-for-sale, Number of Securities in a Loss Position | security 5 3
Available-for-sale Debt Securities, Less than 12 Months, Fair Value $ 4,884 $ 2,659
Available-for-sale Debt Securities, 12 Months or More, Fair Value 1,888 1,939
Available-for-sale Debt Securities, Total 6,772 4,598
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months 12 11
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 288 389
Available-for-sale Debt Securities Unrealized losses, Total $ 300 $ 400
Corporate debt securities    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security 2 5
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 8 6
Total, Available-for-sale, Number of Securities in a Loss Position | security 10 11
Available-for-sale Debt Securities, Less than 12 Months, Fair Value $ 1,491 $ 6,083
Available-for-sale Debt Securities, 12 Months or More, Fair Value 7,451 3,601
Available-for-sale Debt Securities, Total 8,942 9,684
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months 9 316
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 313 399
Available-for-sale Debt Securities Unrealized losses, Total $ 322 $ 715
Other    
Available-for-sale Debt Securities    
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position | security 8  
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position | security 11  
Total, Available-for-sale, Number of Securities in a Loss Position | security 19  
Available-for-sale Debt Securities, Less than 12 Months, Fair Value $ 14,534  
Available-for-sale Debt Securities, 12 Months or More, Fair Value 8,000  
Available-for-sale Debt Securities, Total 22,534  
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months 96  
Available-for-sale Debt Securities Unrealized losses, 12 Months or More 193  
Available-for-sale Debt Securities Unrealized losses, Total $ 289  
U.S. government-sponsored enterprises, Tax-exempt    
Held to Maturity, Debt Securities    
Held to Maturity, Less Than 12 Months, Number of Securities in a Loss Position | security   4
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position | security 11 12
Total, Held to Maturity, Number of Securities in a Loss Position | security 11 16
Held-to-maturity Debt (HTM) Securities, Less than 12 Months   $ 2,508
Held-to-maturity Debt (HTM) Securities, 12 months or More $ 6,641 7,235
Held-to-maturity Debt (HTM) Securities, Total 6,641 9,743
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Less than 12 Months   66
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More 620 1,037
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total $ 620 $ 1,103
v3.26.1
Investment securities - Unrealized and realized gains and losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Investment securities      
Net gains (losses) recognized during the period on equity securities $ 168 $ 132 $ (11)
Less: net gains recognized during the period on equity securities sold during the period   157  
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 168 $ (25) $ (11)
v3.26.1
Investment securities (Details) - USD ($)
12 Months Ended
Dec. 23, 2025
Jul. 01, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]          
Allowance for credit loss on available-for-sale debt securities     $ 0 $ 0 $ 0
Allowance for credit loss on held to maturity debt securities     0 0  
Debt securities, available-for-sale, sold         67,300,000
Weighted average yield 4.67%        
Weighted average life 10 years 6 months        
Proceeds from sales of investment securities available for sale $ 76,400,000       67,400,000
Net gain on securities sold 0       319,000
Gross realized losses     2,200,000   238,000
Investment securities purchased     168,495,000 4,841,000  
Equity securities     2,600,000 2,400,000  
Net loss on securities sold     2,200,000   238,000
Equity securities without readily determinable fair values     4,908,000 5,080,000  
Impairment Related to Equity Securities     0 0 $ 0
U.S. Treasury securities          
Debt and Equity Securities, FV-NI [Line Items]          
Debt securities, available-for-sale, sold $ 78,600,000        
Weighted average yield 1.18%        
Weighted average life 1 year 2 months 12 days        
Mortgage-backed Securities, U.S. Government agencies          
Debt and Equity Securities, FV-NI [Line Items]          
Investment securities purchased $ 38,200,000        
Federal Home Loan Bank (FHLB)          
Debt and Equity Securities, FV-NI [Line Items]          
Equity securities without readily determinable fair values     12,400,000 10,200,000  
Fin Tech Investments and Investment          
Debt and Equity Securities, FV-NI [Line Items]          
Equity securities without readily determinable fair values     4,900,000 $ 4,600,000  
Non-cumulative, perpetual preferred stock          
Debt and Equity Securities, FV-NI [Line Items]          
Equity securities without readily determinable fair values     $ 500,000    
State and municipals, Tax-exempt          
Debt and Equity Securities, FV-NI [Line Items]          
Investment securities purchased $ 37,900,000        
FNCB          
Debt and Equity Securities, FV-NI [Line Items]          
Proceeds from sales of investment securities available for sale   $ 241,300,000      
Gross gains (losses) realized upon sale   $ 0      
v3.26.1
Loans, net and allowance for credit losses - Net Deferred Loan Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Net deferred loan costs $ 1,900 $ 1,100
Unearned income 1,500 1,300
Net loans 4,027,889 $ 3,951,729
Federal Home Loan Bank (FHLB)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits 1,700,000  
Federal Reserve Bank Advances    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits 339,400  
Assets pledged as collateral | Federal Home Loan Bank (FHLB)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Net loans 2,400,000  
Assets pledged as collateral | Federal Reserve Bank Advances    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Net loans $ 482,800  
v3.26.1
Loans, net and allowance for credit losses - Major Classifications of Loans Outstanding (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable      
Loans $ 4,066,896 $ 3,993,505 $ 2,849,897
Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable      
Loans 667,948 648,102  
Municipal      
Accounts, Notes, Loans and Financing Receivable      
Loans 202,303 187,918 175,304
Real estate      
Accounts, Notes, Loans and Financing Receivable      
Loans 2,916,419 2,845,496  
Commercial real estate      
Accounts, Notes, Loans and Financing Receivable      
Loans 2,314,110 2,294,113 1,863,118
Residential real estate      
Accounts, Notes, Loans and Financing Receivable      
Loans 602,309 551,383 360,803
Consumer      
Accounts, Notes, Loans and Financing Receivable      
Loans 111,238 132,869 $ 82,261
Indirect auto      
Accounts, Notes, Loans and Financing Receivable      
Loans 93,742 117,914  
Consumer other      
Accounts, Notes, Loans and Financing Receivable      
Loans 17,496 14,955  
Equipment financing      
Accounts, Notes, Loans and Financing Receivable      
Loans $ 168,988 $ 179,120  
v3.26.1
Loans, net and allowance for credit losses- Major Classification of Loans by Past Due Status (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment $ 4,066,896 $ 3,993,505 $ 2,849,897
Loans > 90 Days and Accruing 524 458  
Financial Assets, Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 23,903 29,841  
30-59 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 11,241 10,962  
60-89 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 4,266 3,093  
Greater than 90 Days      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 8,396 15,786  
Current      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 4,042,993 3,963,664  
Commercial and industrial      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 667,948 648,102  
Commercial and industrial | Financial Assets, Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 3,064 3,735  
Commercial and industrial | 30-59 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 1,090 2,740  
Commercial and industrial | 60-89 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 147 157  
Commercial and industrial | Greater than 90 Days      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 1,827 838  
Commercial and industrial | Current      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 664,884 644,367  
Municipal      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 202,303 187,918 175,304
Municipal | Current      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 202,303 187,918  
Real estate      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 2,916,419 2,845,496  
Commercial real estate      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 2,314,110 2,294,113 1,863,118
Commercial real estate | Financial Assets, Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 8,952 14,105  
Commercial real estate | 30-59 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 3,943 2,800  
Commercial real estate | 60-89 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 1,459 141  
Commercial real estate | Greater than 90 Days      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 3,550 11,164  
Commercial real estate | Current      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 2,305,158 2,280,008  
Residential real estate      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 602,309 551,383 360,803
Loans > 90 Days and Accruing 524 403  
Loans in the formal process of foreclosure 600 200  
Residential real estate | Financial Assets, Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 6,109 5,864  
Residential real estate | 30-59 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 2,948 2,390  
Residential real estate | 60-89 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 1,413 997  
Residential real estate | Greater than 90 Days      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 1,748 2,477  
Residential real estate | Current      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 596,200 545,519  
Consumer      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 111,238 132,869 $ 82,261
Loans > 90 Days and Accruing   55  
Consumer | Financial Assets, Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 3,803 3,424  
Consumer | 30-59 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 2,527 2,393  
Consumer | 60-89 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 500 539  
Consumer | Greater than 90 Days      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 776 492  
Consumer | Current      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 107,435 129,445  
Equipment financing      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 168,988 179,120  
Equipment financing | Financial Assets, Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 1,975 2,713  
Equipment financing | 30-59 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 733 639  
Equipment financing | 60-89 Days Past Due      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 747 1,259  
Equipment financing | Greater than 90 Days      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment 495 815  
Equipment financing | Current      
Financing Receivable, Recorded Investment, Past Due.      
Loans held for investment $ 167,013 $ 176,407  
v3.26.1
Loans, net and allowance for credit losses - Nonaccrual Loans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Allowance for Credit Losses    
Total Nonaccrual Loans $ 10,796 $ 22,499
Nonaccrual with an Allowance for Credit Losses 3,089 3,736
Nonaccrual with no Allowance for Credit Losses 7,707 18,763
Interest income recorded on nonaccrual loans 700 1,100
Commercial and industrial    
Financing Receivable, Allowance for Credit Losses    
Total Nonaccrual Loans 1,955 1,907
Nonaccrual with an Allowance for Credit Losses 1,016 343
Nonaccrual with no Allowance for Credit Losses 939 1,564
Commercial real estate    
Financing Receivable, Allowance for Credit Losses    
Total Nonaccrual Loans 4,152 15,609
Nonaccrual with an Allowance for Credit Losses 1,178 2,574
Nonaccrual with no Allowance for Credit Losses 2,974 13,035
Residential real estate    
Financing Receivable, Allowance for Credit Losses    
Total Nonaccrual Loans 2,511 2,809
Nonaccrual with an Allowance for Credit Losses 67  
Nonaccrual with no Allowance for Credit Losses 2,444 2,809
Consumer    
Financing Receivable, Allowance for Credit Losses    
Total Nonaccrual Loans 1,048 744
Nonaccrual with no Allowance for Credit Losses 1,048 744
Equipment financing    
Financing Receivable, Allowance for Credit Losses    
Total Nonaccrual Loans 1,130 1,430
Nonaccrual with an Allowance for Credit Losses 828 819
Nonaccrual with no Allowance for Credit Losses $ 302 $ 611
v3.26.1
Loans, net and allowance for credit losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable      
Year 1 $ 597,375 $ 365,944  
Year 2 331,412 427,965  
Year 3 345,156 955,611  
Year 4 789,146 855,257  
Year 5 693,743 257,621  
Prior 889,070 796,306  
Revolving Loans Amortized Cost Basis 420,823 334,666  
Revolving Loans Converted to Term 171 135  
Total 4,066,896 3,993,505 $ 2,849,897
Gross charge-offs, Year 1 210 90  
Gross charge-offs, Year 2 696 837  
Gross charge-offs, Year 3 1,139 364  
Gross charge-offs, Year 4 1,972 185  
Gross charge-offs, Year 5 173 32  
Gross charge-offs, Prior 643 377  
Total 4,833 1,885  
Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable      
Year 1 81,546 62,930  
Year 2 70,393 70,760  
Year 3 58,189 84,663  
Year 4 57,219 78,867  
Year 5 39,607 32,078  
Prior 94,768 93,764  
Revolving Loans Amortized Cost Basis 266,126 224,972  
Revolving Loans Converted to Term 100 68  
Total 667,948 648,102  
Gross charge-offs, Year 2 300 41  
Gross charge-offs, Year 4 24 2  
Gross charge-offs, Year 5 57    
Gross charge-offs, Prior 493 8  
Total 874 51  
Municipal      
Accounts, Notes, Loans and Financing Receivable      
Year 1 23,125 5,072  
Year 2 4,324 6,254  
Year 3 1,354 50,886  
Year 4 45,369 99,064  
Year 5 88,165 9,932  
Prior 38,331 13,816  
Revolving Loans Amortized Cost Basis 1,635 2,894  
Total 202,303 187,918 175,304
Commercial real estate      
Accounts, Notes, Loans and Financing Receivable      
Year 1 360,438 162,417  
Year 2 146,991 200,101  
Year 3 176,362 662,861  
Year 4 575,829 530,700  
Year 5 450,704 160,309  
Prior 603,715 577,725  
Revolving Loans Converted to Term 71    
Total 2,314,110 2,294,113 1,863,118
Gross charge-offs, Year 4 853    
Gross charge-offs, Prior 95 282  
Total 948 282  
Residential real estate      
Accounts, Notes, Loans and Financing Receivable      
Year 1 56,021 39,488  
Year 2 38,109 45,172  
Year 3 40,913 77,862  
Year 4 66,927 123,280  
Year 5 104,792 51,127  
Prior 148,990 108,442  
Revolving Loans Amortized Cost Basis 146,557 105,945  
Revolving Loans Converted to Term   67  
Total 602,309 551,383 360,803
Gross charge-offs, Year 4 92    
Total 92    
Consumer      
Accounts, Notes, Loans and Financing Receivable      
Year 1 25,601 28,937  
Year 2 19,907 38,379  
Year 3 24,154 38,877  
Year 4 22,054 19,087  
Year 5 9,751 4,175  
Prior 3,266 2,559  
Revolving Loans Amortized Cost Basis 6,505 855  
Total 111,238 132,869 $ 82,261
Gross charge-offs, Year 1   90  
Gross charge-offs, Year 2 195 245  
Gross charge-offs, Year 3 361 255  
Gross charge-offs, Year 4 342 183  
Gross charge-offs, Year 5 116 32  
Gross charge-offs, Prior 55 87  
Total 1,069 892  
Equipment financing      
Accounts, Notes, Loans and Financing Receivable      
Year 1 50,644 67,100  
Year 2 51,688 67,299  
Year 3 44,184 40,462  
Year 4 21,748 4,259  
Year 5 724    
Total 168,988 179,120  
Gross charge-offs, Year 1 210    
Gross charge-offs, Year 2 201 551  
Gross charge-offs, Year 3 778 109  
Gross charge-offs, Year 4 661    
Total 1,850 660  
Pass | Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable      
Year 1 81,246 61,657  
Year 2 69,710 69,329  
Year 3 57,789 83,123  
Year 4 53,915 64,488  
Year 5 38,907 29,950  
Prior 94,729 91,906  
Revolving Loans Amortized Cost Basis 251,834 199,737  
Revolving Loans Converted to Term 100 68  
Total 648,230 600,258  
Pass | Municipal      
Accounts, Notes, Loans and Financing Receivable      
Year 1 23,125 5,072  
Year 2 4,324 6,254  
Year 3 1,354 50,886  
Year 4 45,369 99,064  
Year 5 88,165 9,932  
Prior 38,331 13,816  
Revolving Loans Amortized Cost Basis 1,635 2,894  
Total 202,303 187,918  
Pass | Commercial real estate      
Accounts, Notes, Loans and Financing Receivable      
Year 1 359,323 161,186  
Year 2 146,483 196,779  
Year 3 175,145 651,254  
Year 4 566,480 525,233  
Year 5 441,660 156,970  
Prior 586,189 538,905  
Revolving Loans Converted to Term 71    
Total 2,275,351 2,230,327  
Pass | Residential real estate      
Accounts, Notes, Loans and Financing Receivable      
Year 1 56,021 39,488  
Year 2 38,109 45,172  
Year 3 40,913 77,862  
Year 4 66,927 123,154  
Year 5 104,534 50,831  
Prior 148,121 106,877  
Revolving Loans Amortized Cost Basis 146,380 105,867  
Revolving Loans Converted to Term   67  
Total 601,005 549,318  
Pass | Consumer      
Accounts, Notes, Loans and Financing Receivable      
Year 1 25,443 28,872  
Year 2 19,746 38,223  
Year 3 24,017 38,668  
Year 4 21,716 18,963  
Year 5 9,574 4,132  
Prior 3,153 2,495  
Revolving Loans Amortized Cost Basis 6,493 853  
Total 110,142 132,206  
Pass | Equipment financing      
Accounts, Notes, Loans and Financing Receivable      
Year 1 50,357 67,100  
Year 2 51,024 66,341  
Year 3 43,364 39,323  
Year 4 21,050 4,259  
Year 5 724    
Total 166,519 177,023  
Special mention | Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable      
Year 1 300 1,273  
Year 2 572 1,131  
Year 3   686  
Year 4 2,725 13,475  
Year 5 36 2,043  
Prior 9 1,261  
Revolving Loans Amortized Cost Basis 8,718 16,840  
Total 12,360 36,709  
Special mention | Commercial real estate      
Accounts, Notes, Loans and Financing Receivable      
Year 1 573 1,231  
Year 2   46  
Year 3   2,724  
Year 4 1,508 4,361  
Year 5 2,174 1,635  
Prior 9,149 24,951  
Total 13,404 34,948  
Special mention | Equipment financing      
Accounts, Notes, Loans and Financing Receivable      
Year 2   261  
Year 3 129 125  
Year 4 12    
Total 141 386  
Substandard | Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable      
Year 2 111 300  
Year 3 400 854  
Year 4 579 904  
Year 5 664 85  
Prior 30 597  
Revolving Loans Amortized Cost Basis 5,574 8,395  
Total 7,358 11,135  
Substandard | Commercial real estate      
Accounts, Notes, Loans and Financing Receivable      
Year 1 542    
Year 2 508 3,276  
Year 3 1,217 8,883  
Year 4 7,841 1,106  
Year 5 6,870 1,704  
Prior 8,377 13,869  
Total 25,355 28,838  
Substandard | Residential real estate      
Accounts, Notes, Loans and Financing Receivable      
Year 4   126  
Year 5 258 296  
Prior 869 1,565  
Revolving Loans Amortized Cost Basis 177 78  
Total 1,304 2,065  
Substandard | Consumer      
Accounts, Notes, Loans and Financing Receivable      
Year 1 158 65  
Year 2 161 156  
Year 3 137 209  
Year 4 338 124  
Year 5 177 43  
Prior 113 64  
Revolving Loans Amortized Cost Basis 12 2  
Total 1,096 663  
Substandard | Equipment financing      
Accounts, Notes, Loans and Financing Receivable      
Year 1 287    
Year 2 664 697  
Year 3 691 1,014  
Year 4 686    
Total $ 2,328 $ 1,711  
v3.26.1
Loans, net and allowance for credit losses -Modifications to Borrowers Experiencing Financial Difficulty (Details) - Modified Loans
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
loan
Dec. 31, 2024
USD ($)
loan
Payment Deferral    
Financing Receivable, Modified [Line Items]    
Number of Loans | loan 3 1
Amortized Cost Basis $ 407 $ 408
Related Reserve $ 0  
Commercial and Industrial | Payment Deferral    
Financing Receivable, Modified [Line Items]    
Number of Loans | loan 3 1
Amortized Cost Basis $ 407 $ 408
Total Class of Financing Receivable 0.06% 0.06%
Related Reserve $ 0  
Commercial and Industrial | Extended maturity    
Financing Receivable, Modified [Line Items]    
Number of Loans | loan 1  
Amortized Cost Basis $ 46  
Commercial and Industrial | Interest only for a fixed time period    
Financing Receivable, Modified [Line Items]    
Number of Loans | loan 2  
Amortized Cost Basis $ 361  
v3.26.1
Loans, net and allowance for credit losses - Amortized cost and performance status of nonaccrual modified loans (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
Nonaccrual Modified Loans  
Financing Receivable, Past Due [Line Items]  
Financing receivable $ 407
Commercial and Industrial  
Financing Receivable, Past Due [Line Items]  
Loan amount in default 242
Commercial and Industrial | Nonaccrual Modified Loans  
Financing Receivable, Past Due [Line Items]  
Financing receivable 407
Current | Nonaccrual Modified Loans  
Financing Receivable, Past Due [Line Items]  
Financing receivable 165
Current | Commercial and Industrial | Nonaccrual Modified Loans  
Financing Receivable, Past Due [Line Items]  
Financing receivable 165
90 Days or More Past Due | Nonaccrual Modified Loans  
Financing Receivable, Past Due [Line Items]  
Financing receivable 242
90 Days or More Past Due | Commercial and Industrial | Nonaccrual Modified Loans  
Financing Receivable, Past Due [Line Items]  
Financing receivable $ 242
v3.26.1
Loans, net and allowance for credit losses - Allocation of Allowance for Loan Losses and Related Loans by Major Classification of Loans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Allowance for loan losses:      
Beginning Balance $ 41,776 $ 21,895 $ 27,472
Charge-offs (4,833) (1,885) (3,025)
Recoveries 1,966 794 165
Provisions (Credits) 98 4,803 566
Ending balance 39,007 41,776 21,895
Ending balance: individually evaluated for impairment 1,332 949 31
Ending balance: collectively evaluated for impairment 37,675 40,827 21,864
Loans receivable:      
Loans 4,066,896 3,993,505 2,849,897
Ending balance: collectively evaluated for impairment 4,056,693 3,971,341 2,845,157
Cumulative impact of adoption | ASC 326      
Allowance for loan losses:      
Beginning Balance     (3,283)
Adjusted Balance | ASC 326      
Allowance for loan losses:      
Beginning Balance     24,189
Non-PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   14,328  
PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   1,841  
Real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment 8,565 19,444 4,730
Non-real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment 1,638 2,720 10
Commercial      
Allowance for loan losses:      
Beginning Balance 6,004 2,272 4,365
Charge-offs (874) (51) (58)
Recoveries 333 90 11
Provisions (Credits) 573 1,097 (363)
Ending balance 6,036 6,004 2,272
Ending balance: individually evaluated for impairment 404 325 10
Ending balance: collectively evaluated for impairment 5,632 5,679 2,262
Loans receivable:      
Loans 667,948 648,102 368,411
Ending balance: collectively evaluated for impairment 665,993 646,189 368,394
Commercial | Cumulative impact of adoption | ASC 326      
Allowance for loan losses:      
Beginning Balance     (1,683)
Commercial | Adjusted Balance | ASC 326      
Allowance for loan losses:      
Beginning Balance     2,682
Commercial | Non-PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   2,259  
Commercial | PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   337  
Commercial | Real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment 1,470 906 7
Commercial | Non-real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment 485 1,007 10
Municipal      
Allowance for loan losses:      
Beginning Balance 1,072 788 1,247
Provisions (Credits) 341 (289) (1,206)
Ending balance 1,413 1,072 788
Ending balance: collectively evaluated for impairment 1,413 1,072 788
Loans receivable:      
Loans 202,303 187,918 175,304
Ending balance: collectively evaluated for impairment 202,303 187,918 175,304
Municipal | Cumulative impact of adoption | ASC 326      
Allowance for loan losses:      
Beginning Balance     747
Municipal | Adjusted Balance | ASC 326      
Allowance for loan losses:      
Beginning Balance     1,994
Municipal | Non-PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   502  
Municipal | PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   71  
Real estate      
Loans receivable:      
Loans 2,916,419 2,845,496  
Commercial real estate      
Allowance for loan losses:      
Beginning Balance 21,804 14,153 17,915
Charge-offs (948) (282) (2,598)
Recoveries 682 69 1
Provisions (Credits) (1,540) 3,344 2,179
Ending balance 19,998 21,804 14,153
Ending balance: individually evaluated for impairment 451 190  
Ending balance: collectively evaluated for impairment 19,547 21,614 14,153
Loans receivable:      
Loans 2,314,110 2,294,113 1,863,118
Ending balance: collectively evaluated for impairment 2,310,054 2,278,503 1,860,144
Commercial real estate | Cumulative impact of adoption | ASC 326      
Allowance for loan losses:      
Beginning Balance     (3,344)
Commercial real estate | Adjusted Balance | ASC 326      
Allowance for loan losses:      
Beginning Balance     14,571
Commercial real estate | Non-PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   4,149  
Commercial real estate | PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   371  
Commercial real estate | Real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment 4,056 15,326 2,974
Commercial real estate | Non-real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment   284  
Residential real estate      
Allowance for loan losses:      
Beginning Balance 4,924 3,782 3,072
Charge-offs (92)    
Recoveries 86 16 24
Provisions (Credits) 45 (1,127) (281)
Ending balance 4,963 4,924 3,782
Ending balance: individually evaluated for impairment 78   21
Ending balance: collectively evaluated for impairment 4,885 4,924 3,761
Loans receivable:      
Loans 602,309 551,383 360,803
Ending balance: collectively evaluated for impairment 599,270 548,171 359,054
Residential real estate | Cumulative impact of adoption | ASC 326      
Allowance for loan losses:      
Beginning Balance     967
Residential real estate | Adjusted Balance | ASC 326      
Allowance for loan losses:      
Beginning Balance     4,039
Residential real estate | Non-PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   1,785  
Residential real estate | PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   468  
Residential real estate | Real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment 3,039 3,212 1,749
Consumer      
Allowance for loan losses:      
Beginning Balance 2,540 900 873
Charge-offs (1,069) (892) (369)
Recoveries 475 478 129
Provisions (Credits) (187) 264 237
Ending balance 1,759 2,540 900
Ending balance: collectively evaluated for impairment 1,759 2,540 900
Loans receivable:      
Loans 111,238 132,869 82,261
Ending balance: collectively evaluated for impairment 111,238 132,869 82,261
Consumer | Cumulative impact of adoption | ASC 326      
Allowance for loan losses:      
Beginning Balance     30
Consumer | Adjusted Balance | ASC 326      
Allowance for loan losses:      
Beginning Balance     $ 903
Consumer | Non-PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   1,470  
Consumer | PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   320  
Equipment Financing      
Allowance for loan losses:      
Beginning Balance 5,432    
Charge-offs (1,850) (660)  
Recoveries 390 141  
Provisions (Credits) 866 1,514  
Ending balance 4,838 5,432  
Ending balance: individually evaluated for impairment 399 434  
Ending balance: collectively evaluated for impairment 4,439 4,998  
Loans receivable:      
Loans 168,988 179,120  
Ending balance: collectively evaluated for impairment 167,835 177,691  
Equipment Financing | Non-PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   4,163  
Equipment Financing | PCD loans      
Allowance for loan losses:      
Gross-up for PCD Allowance for Credit Losses at Acquisition   274  
Equipment Financing | Non-real estate      
Loans receivable:      
Ending balance: individually evaluated for impairment $ 1,153 $ 1,429  
v3.26.1
Loans, net and allowance for credit losses - Allowance for Credit Losses on Off Balance Sheet Commitments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Allowance for Credit Losses      
Beginning balance $ 880 $ 43 $ 179
Merger related adjustments   880  
Charge-off (1)    
Provision for (credit to) credit losses recorded in noninterest expense 426 (43) (406)
Total allowance for credit losses on off balance sheet commitments $ 1,305 880 43
Cumulative impact of adoption      
Financing Receivable, Allowance for Credit Losses      
Beginning balance   $ 270  
Total allowance for credit losses on off balance sheet commitments     $ 270
v3.26.1
Related party transactions - Outstanding loans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Loans and Leases Receivable, Related Parties    
Balance, beginning of period $ 130,563 $ 3,105
Additions, new loans and advances 30,989 128,916
Repayments and other reductions (22,178) (1,458)
Balance, end of period $ 139,374 $ 130,563
v3.26.1
Related party transactions (Details)
$ in Thousands
12 Months Ended
Dec. 04, 2025
USD ($)
item
building
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 30, 2025
USD ($)
Related party transactions          
Interest bearing deposits   $ 3,479,584 $ 3,472,036    
Payment to goods or services from related party   177 117 $ 8  
Proceeds from the sale of premises and equipment   7,392 1,807 $ 14  
Premises and equipment, net   78,496 73,283    
Property At Preate Drive, Moosic, Pennsylvania          
Related party transactions          
Number of buildings sold | building 2        
Number of parking lots sold | item 5        
Proceeds from the sale of premises and equipment $ 3,700        
Premises and equipment, net 4,300        
Gain loss on disposition of assets $ (600)        
Related party          
Related party transactions          
Outstanding balance of non-performing loans   0 0    
Interest bearing deposits   161,500 132,000    
Outstanding debt     $ 3,000    
Subordinate Notes Due 2030          
Related party transactions          
Aggregate principal amount         $ 33,000
Subordinate Notes Due 2030 | Related party          
Related party transactions          
Aggregate principal amount   $ 0      
v3.26.1
Off-balance sheet financial instruments - Summary of Contractual Amounts of Off-balance Sheet Commitments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Off-balance sheet financial instruments    
Commitments to extend credit $ 660,353 $ 589,725
Unused portions of lines of credit 178,689 150,840
Standby letters of credit 54,970 60,353
Total contractual amounts of off-balance sheet commitments $ 894,012 $ 800,918
v3.26.1
Off-balance sheet financial instruments - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Off-balance sheet financial instruments        
Off-balance sheet exposures $ 1,305 $ 880 $ 43 $ 179
Expiration period of standby letters 12 months      
Amount of standby letters of credit $ 47,200 $ 57,200    
v3.26.1
Premises and equipment, net - Summary of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Premises and equipment, net    
Gross premises and equipment $ 126,359 $ 126,327
Less: accumulated depreciation 47,863 53,044
Net premises and equipment 78,496 73,283
Land    
Premises and equipment, net    
Gross premises and equipment 6,976 8,850
Premises and leasehold improvements    
Premises and equipment, net    
Gross premises and equipment 68,692 74,938
Right-of-use assets    
Premises and equipment, net    
Gross premises and equipment 17,797 12,302
Furniture, fixtures and equipment    
Premises and equipment, net    
Gross premises and equipment $ 32,894 $ 30,237
v3.26.1
Premises and equipment, net (Details)
$ in Thousands
12 Months Ended
Dec. 04, 2025
USD ($)
item
building
Jun. 23, 2025
USD ($)
Feb. 28, 2025
lease
Jan. 17, 2025
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Premises and equipment, net              
Depreciation of premises and equipment         $ 3,317 $ 3,346 $ 2,794
Net proceeds of the sale       $ 3,600      
Pre-tax gain       $ 600      
Lease term     15 years        
Number of renewal options | lease     2        
Renewal lease term     5 years        
Options to renew     true   true    
Proceeds from the sale of premises and equipment         $ 7,392 1,807 $ 14
Premises and equipment, net         $ 78,496 $ 73,283  
Property At Dunmore, Pennsylvania              
Premises and equipment, net              
Number of buildings sold | building 2            
Number of parking lots sold | item 5            
Proceeds from the sale of premises and equipment $ 3,700            
Premises and equipment, net 4,300            
Gain loss on disposition of assets $ (600)            
Property At Preate Drive, Moosic, Pennsylvania              
Premises and equipment, net              
Number of buildings sold | building 2            
Number of parking lots sold | item 5            
Proceeds from the sale of premises and equipment $ 3,700            
Premises and equipment, net 4,300            
Gain loss on disposition of assets $ (600)            
Property At Preate Drive, Moosic, Pennsylvania | Peoples Security Bank and Trust Company              
Premises and equipment, net              
Asset acquisition, price of acquisition, expected   $ 19,500          
Asset acquisition, repairs and improvements paid   3,000          
Asset acquisition, office fit out costs paid   $ 500          
v3.26.1
Operating lease commitments and contingencies (Details)
$ in Thousands
12 Months Ended
Feb. 28, 2025
Dec. 31, 2025
USD ($)
item
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Operating leases        
Options to renew true true    
Renewal term   5 years    
Weighted average remaining lease term   21 years 3 months 18 days 15 years 9 months 18 days  
Weighted-average discount rate   4.50% 3.57%  
Operating lease right of use asset   $ 17,800 $ 12,300  
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]   Property, Plant and Equipment, Net Property, Plant and Equipment, Net  
Operating lease liability   $ 18,439 $ 12,700  
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]   Other Liabilities Other Liabilities  
Rent expense   $ 2,200 $ 1,200 $ 1,000
Number of operating lease added | item   4    
Initial recognition of right-of-use assets   $ 7,097 3,084 3,878
Initial recognition of lease liability   $ 7,097 $ 3,082 $ 3,878
Minimum        
Operating leases        
Discount rate   1.60% 1.60%  
Maximum        
Operating leases        
Discount rate   5.86% 5.25%  
v3.26.1
Operating lease commitments and contingencies - Summary of Future Minimum Rental Commitments Under Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Operating lease commitments and contingencies    
2026 $ 1,515  
2027 1,448  
2028 1,458  
2029 1,416  
2030 1,331  
Thereafter 23,076  
Total future minimum lease payments 30,244  
Less amount representing interest (11,805)  
Present value of future minimum lease payments $ 18,439 $ 12,700
v3.26.1
Goodwill and other intangibles (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets      
Goodwill, Beginning Balance   $ 75,986 $ 63,370
Goodwill, Additions   12,616  
Goodwill, Ending Balance $ 75,986 75,986  
Intangible assets, Beginning Balance   34,197  
Intangible assets, Additions   37,617  
Intangible assets, Accumulated Impairment Charges 6,397 3,367 105
Intangible assets, Accumulated Amortization 6,497 3,420 $ 100
Intangible assets, Ending Balance 27,700 34,197  
Core deposit intangibles      
Finite-Lived Intangible Assets      
Intangible assets, Beginning Balance   33,299  
Intangible assets, Additions   36,629  
Intangible assets, Accumulated Amortization 6,327 3,330  
Intangible assets, Ending Balance 26,972 33,299  
Wealth management customer list intangible      
Finite-Lived Intangible Assets      
Intangible assets, Beginning Balance   898  
Intangible assets, Additions   988  
Intangible assets, Accumulated Amortization 170 90  
Intangible assets, Ending Balance $ 728 $ 898  
v3.26.1
Goodwill and other intangibles - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and other intangibles      
Accumulated amortization on intangible assets $ 6,497 $ 3,420 $ 100
v3.26.1
Goodwill and other intangibles - Summary of Estimated Amortization Expense on Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets    
2026 $ 5,814  
2027 5,130  
2028 4,446  
2029 3,762  
2029 3,078  
Thereafter 5,470  
Total amortizing intangible 27,700 $ 34,197
Core deposit intangibles    
Finite-Lived Intangible Assets    
2026 5,661  
2027 4,995  
2028 4,329  
2029 3,663  
2029 2,997  
Thereafter 5,327  
Total amortizing intangible 26,972 33,299
Wealth management customer list intangible    
Finite-Lived Intangible Assets    
2026 153  
2027 135  
2028 117  
2029 99  
2029 81  
Thereafter 143  
Total amortizing intangible $ 728 $ 898
v3.26.1
Other assets - Components of Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other assets    
Other real estate owned $ 1,682 $ 738
Mortgage servicing rights 1,211 1,304
Prepaid shares tax 253 1,304
Equity investments without readily determinable fair value 4,908 5,080
Prepaid pension 7,096 5,788
Prepaid expenses 7,813 7,031
Restricted equity securities (FHLB and ACBB) 12,457 10,220
Investment in low income housing partnerships 15,454 17,886
Interest rate swaps 15,896 21,005
Other assets 4,220 5,031
Total 70,677 74,919
Interest rate swaps    
Other assets    
Interest rate swaps $ 15,583 $ 20,537
v3.26.1
Other assets - Unpaid Principal Balances (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Other assets    
Unpaid principal balances of mortgage loans serviced for others $ 174.3 $ 185.2
v3.26.1
Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deposits    
Money market accounts $ 989,230 $ 936,239
Interest-bearing demand and NOW accounts 1,285,767 1,238,853
Savings accounts 497,523 492,180
Time deposits less than $250 477,115 620,725
Time deposits $250 or more 229,949 184,039
Total interest-bearing deposits 3,479,584 3,472,036
Noninterest-bearing deposits 954,485 935,516
Total deposits $ 4,434,069 $ 4,407,552
v3.26.1
Deposits - Schedule of Maturities of Time Deposits (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Deposits  
2026 $ 628,519
2027 47,131
2028 16,951
2029 6,603
2030 6,893
Thereafter 967
Total $ 707,064
v3.26.1
Deposits (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deposits    
Time deposits less than $250,000. $ 152.3 $ 256.6
Aggregate amount of deposits reclassified as loans $ 0.9 $ 0.7
v3.26.1
Short-term borrowings (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Short-term borrowings      
Ending Balance $ 32,721 $ 15,900 $ 17,590
Average Balance 29,241 37,120 38,331
Maximum Month-End Balance $ 83,510 $ 133,918 $ 186,470
Weighted Average Rate for the Year 4.40% 5.48% 5.01%
Weighted Average Rate at End of the Year 3.74% 4.34% 5.35%
FHLB advances - Overnight      
Short-term borrowings      
Ending Balance $ 23,761    
Average Balance 16,452 $ 6,733 $ 19,171
Maximum Month-End Balance $ 65,350 $ 83,900 $ 158,000
Weighted Average Rate for the Year 4.44% 5.53% 4.48%
Weighted Average Rate at End of the Year 3.76%    
Federal Reserve Bank - BTFP      
Short-term borrowings      
Average Balance   $ 12,352  
Maximum Month-End Balance   $ 24,968  
Weighted Average Rate for the Year   5.73%  
Other borrowings      
Short-term borrowings      
Ending Balance $ 8,960 $ 15,900 $ 17,590
Average Balance 12,789 18,035 19,160
Maximum Month-End Balance $ 18,160 $ 25,050 $ 28,470
Weighted Average Rate for the Year 4.35% 5.27% 5.54%
Weighted Average Rate at End of the Year 3.67% 4.34% 5.35%
v3.26.1
Short-term borrowings - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Short-term borrowings    
Maximum borrowing capacity $ 27,000 $ 18,000
Outstanding amount in borrowings 0 0
Total investment securities 587,208 606,943
Net loans 4,027,889 $ 3,951,729
Bank    
Short-term borrowings    
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits 498,800  
FHLB Advances    
Short-term borrowings    
Maximum borrowing capacity 1,700,000  
Outstanding amount in borrowings 134,500  
Short-term bank loans and notes payable 23,800  
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits 1,700,000  
Assets pledged as collateral | FHLB Advances    
Short-term borrowings    
Net loans 2,400,000  
Assets pledged as collateral | Borrow in Custody Program    
Short-term borrowings    
Net loans 482,800  
Assets pledged as collateral | Bank Term Funding Program    
Short-term borrowings    
Total investment securities 9,600  
Borrow in Custody Program    
Short-term borrowings    
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits 339,400  
Federal Reserve Bank Discount Window    
Short-term borrowings    
Maximum borrowing capacity $ 349,000  
v3.26.1
Long-term debt - Long-term debt advances (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument    
Total FHLB long-term debt $ 134,496 $ 99,148
Less net fair value discount (144) (511)
Total long-term debt $ 134,352 98,637
Long-term 4.37% fixed rate debt due March 2025    
Debt Instrument    
Fixed interest rate (as a percent) 4.37%  
Total FHLB long-term debt   10,000
Long-term 4.40% fixed rate debt instrument due December 2025    
Debt Instrument    
Fixed interest rate (as a percent) 4.40%  
Total FHLB long-term debt   9,567
Long-term 4.36% fixed rate debt instrument due December 2025    
Debt Instrument    
Fixed interest rate (as a percent) 4.36%  
Total FHLB long-term debt   20,000
Long-term 4.78% fixed rate debt instrument due March 2026    
Debt Instrument    
Fixed interest rate (as a percent) 4.78%  
Total FHLB long-term debt $ 4,292 4,292
Long-term 4.20% fixed rate debt due March 2026    
Debt Instrument    
Fixed interest rate (as a percent) 4.20%  
Total FHLB long-term debt $ 15,000 15,000
Long-term 4.08% fixed rate debt instrument due May 2026    
Debt Instrument    
Fixed interest rate (as a percent) 4.08%  
Total FHLB long-term debt $ 5,000 5,000
Long-term 3.98% fixed rate debt instrument due August 2026    
Debt Instrument    
Fixed interest rate (as a percent) 3.98%  
Total FHLB long-term debt $ 12,047  
Long-term 3.95% fixed rate debt instrument due October 2026    
Debt Instrument    
Fixed interest rate (as a percent) 3.95%  
Total FHLB long-term debt $ 15,284  
Long-term 3.51% fixed rate debt instrument due March 2027    
Debt Instrument    
Fixed interest rate (as a percent) 3.51%  
Total FHLB long-term debt $ 12,198  
Long-term 4.16% fixed rate debt instrument due June 2027    
Debt Instrument    
Fixed interest rate (as a percent) 4.16%  
Total FHLB long-term debt $ 5,224 5,224
Long-term 4.01% fixed rate debt instrument due July 2027    
Debt Instrument    
Fixed interest rate (as a percent) 4.01%  
Total FHLB long-term debt $ 21,773  
Long-term 4.40% fixed rate debt instrument due August 2027    
Debt Instrument    
Fixed interest rate (as a percent) 4.40%  
Total FHLB long-term debt $ 6,461 6,461
Long-term 5.29% fixed rate debt instrument due October 2027    
Debt Instrument    
Fixed interest rate (as a percent) 5.29%  
Total FHLB long-term debt $ 2,617 3,941
Long-term 5.18% fixed rate debt instrument due October 2027    
Debt Instrument    
Fixed interest rate (as a percent) 5.18%  
Total FHLB long-term debt $ 5,475 5,475
Long-term 3.61% fixed rate debt instrument due November 2027    
Debt Instrument    
Fixed interest rate (as a percent) 3.61%  
Total FHLB long-term debt $ 14,937  
Long-term 4.45% fixed rate debt instrument due March 2028    
Debt Instrument    
Fixed interest rate (as a percent) 4.45%  
Total FHLB long-term debt $ 14,188 $ 14,188
v3.26.1
Long-term debt - Maturities of long-term debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Long-term debt    
2026 $ 51,623  
2027 68,685  
2028 14,188  
Total FHLB long-term debt 134,496 $ 99,148
Less net fair value discount (144) (511)
Total long-term debt $ 134,352 $ 98,637
v3.26.1
Subordinated debt (Details) - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2025
Jun. 06, 2025
Jun. 01, 2025
Jul. 01, 2024
Jun. 01, 2020
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument                
Repayment of subordinated debt           $ 33,000    
Subordinated debt           83,187 $ 33,000  
Unamortized debt issuance costs           1,800 0  
Interest expense on subordinated debt           4,967 1,774 $ 1,774
Junior subordinated debt           8,140 8,039  
Interest on junior subordinated debt           $ 745 $ 415  
Subordinate Notes Due 2030                
Debt Instrument                
Aggregate principal amount $ 33,000              
Interest rate 5.375%       5.375%      
Duration interest rate in effect         5 years      
Floated interest rate     9.08%          
Junior subordinated debt | FNCB                
Debt Instrument                
Aggregate principal amount       $ 10,300        
Fair market value       $ 8,000        
Trust preferred securities | FNCB                
Debt Instrument                
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]       us-gaap:SecuredOvernightFinancingRateSofrMember        
Basis spread adjustment       0.26161%        
Percentage of margin       1.67%        
Subordinate Notes Due 2035                
Debt Instrument                
Aggregate principal amount   $ 85,000            
Interest rate   7.75%            
Percentage of debt redeemed   100.00%            
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]   us-gaap:SecuredOvernightFinancingRateSofrMember            
Basis points added to the reference rate to compute the variable rate on the debt instrument   411            
Excluding June 15, 2030 | Subordinate Notes Due 2035                
Debt Instrument                
Interest rate   7.75%            
v3.26.1
Fair value of financial instruments (Details)
12 Months Ended
Dec. 31, 2025
USD ($)
security
property
Dec. 31, 2024
USD ($)
Office
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Number of corporate debt securities owned | security 27  
Aggregate amortized cost $ 541,707,000 $ 575,288,000
Available for sale, Fair Value 512,563,000 526,329,000
Fair value of assets transfers into level 3 $ 0  
Market Not Active    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Number of corporate debt securities owned 1  
Aggregate amortized cost $ 900,000  
Available for sale, Fair Value 1,000,000  
Former community banking office | Other Assets.    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Other real estate owned 221,000  
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Available for sale, Fair Value 988,000 4,622,000
Level 3 | Other Assets.    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Other real estate owned 1,700,000 700,000
Level 3 | Former community banking office | Other Assets.    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Other real estate owned   $ 711,000
Number of former community banking office properties | Office   1
Level 3 | Commercial property | Other Assets.    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Other real estate owned $ 750,000  
Number of commercial properties | property 1  
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Aggregate amortized cost $ 24,287,000 $ 31,442,000
Available for sale, Fair Value $ 24,794,000 $ 31,621,000
v3.26.1
Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value $ 515,161 $ 528,759
U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 30,998 167,551
State and municipals, Taxable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 61,622 68,899
State and municipals, Tax-exempt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 125,117 66,117
Residential mortgage-backed securities, U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 42,699 1,376
Residential mortgage-backed securities, U.S. government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 160,080 126,376
Commercial mortgage-backed securities: U.S. government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 1,770 1,856
Private collateralized mortgage obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 48,484 38,572
Asset backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 16,267 23,252
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 24,794 31,621
Negotiable certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 732 709
Common equity securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 2,598 2,430
Interest rate swap-other assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 15,583 20,537
Interest rate swap-other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Liabilities measured at fair value (15,345) (20,151)
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 33,596 169,981
Level 1 | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 30,998 167,551
Level 1 | Common equity securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 2,598 2,430
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 480,577 354,156
Level 2 | State and municipals, Taxable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 61,622 68,899
Level 2 | State and municipals, Tax-exempt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 125,117 66,117
Level 2 | Residential mortgage-backed securities, U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 42,699 1,376
Level 2 | Residential mortgage-backed securities, U.S. government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 160,080 126,376
Level 2 | Commercial mortgage-backed securities: U.S. government-sponsored enterprises    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 1,770 1,856
Level 2 | Private collateralized mortgage obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 48,484 38,572
Level 2 | Asset backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 16,267 23,252
Level 2 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 23,806 26,999
Level 2 | Negotiable certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 732 709
Level 2 | Interest rate swap-other assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 15,583 20,537
Level 2 | Interest rate swap-other liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Liabilities measured at fair value (15,345) (20,151)
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value 988 4,622
Level 3 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets measured at fair value $ 988 $ 4,622
v3.26.1
Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Loans individually evaluated for credit loss $ 10,203 $ 22,164
Other real estate owned 1,682 738
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Loans individually evaluated for credit loss 10,203 22,164
Other real estate owned $ 1,682 $ 738
v3.26.1
Fair value of financial instruments - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - Level 3 - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Loans individually evaluated for credit loss    
Fair Value Inputs, Assets, Quantitative Information    
Assets measured at fair value $ 10,203 $ 22,164
Other Real Estate Owned    
Fair Value Inputs, Assets, Quantitative Information    
Assets measured at fair value $ 1,682 $ 738
Measurement Input, Appraisal Adjustment | Loans individually evaluated for credit loss | Minimum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of appraisal adjustments 0.00% 3.00%
Measurement Input, Appraisal Adjustment | Loans individually evaluated for credit loss | Maximum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of appraisal adjustments 100.00% 111.90%
Measurement Input, Appraisal Adjustment | Loans individually evaluated for credit loss | Weighted Average    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of appraisal adjustments 52.40% 59.60%
Measurement Input, Appraisal Adjustment | Other Real Estate Owned | Minimum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of appraisal adjustments 10.00% 0.00%
Measurement Input, Appraisal Adjustment | Other Real Estate Owned | Maximum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of appraisal adjustments 25.00% 10.00%
Measurement Input, Appraisal Adjustment | Other Real Estate Owned | Weighted Average    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of appraisal adjustments 16.90% 9.70%
Measurement Input, Liquidation expenses | Loans individually evaluated for credit loss | Minimum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of liquidation expenses 0.00% 0.00%
Measurement Input, Liquidation expenses | Loans individually evaluated for credit loss | Maximum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of liquidation expenses 12.20% 6.00%
Measurement Input, Liquidation expenses | Loans individually evaluated for credit loss | Weighted Average    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of liquidation expenses 0.26% 5.60%
Measurement Input, Liquidation expenses | Other Real Estate Owned | Minimum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of liquidation expenses 0.00% 3.00%
Measurement Input, Liquidation expenses | Other Real Estate Owned | Maximum    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of liquidation expenses 0.00% 6.00%
Measurement Input, Liquidation expenses | Other Real Estate Owned | Weighted Average    
Fair Value Inputs, Assets, Quantitative Information    
Range and weighted average of liquidation expenses 0.00% 5.00%
v3.26.1
Fair value of financial instruments - Carrying and Fair Values of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Investment securities:    
Available for sale, Fair Value $ 512,563 $ 526,329
Held to maturity 62,798 65,152
Equity securities 2,598 2,430
Mortgage servicing rights 1,211 1,304
Financial liabilities:    
Subordinated debt 83,187 33,000
Junior subordinated debt 8,140 8,039
Carrying Value    
Financial assets:    
Cash and due from banks 268,984 135,851
Investment securities:    
Available for sale, Fair Value 512,563 526,329
Held to maturity 72,047 78,184
Equity securities 2,598 2,430
Loans held for sale 805  
Net loans 4,027,889 3,951,729
Accrued interest receivable 17,633 15,632
Mortgage servicing rights 1,211 1,304
Restricted equity securities (FHLB and other) 12,457 10,220
Other assets - interest rate swaps 15,583 20,537
Total assets 4,931,770 4,742,216
Financial liabilities:    
Deposits 4,434,069 4,407,552
Short-term borrowings 32,721 15,900
Long-term debt 134,352 98,637
Subordinated debt 83,187 33,000
Junior subordinated debt 8,140 8,039
Accrued interest payable 6,792 5,503
Other liabilities - interest rate swaps 15,345 20,151
Total liabilities 4,714,606 4,588,782
Fair Value    
Financial assets:    
Cash and due from banks 268,984 135,851
Investment securities:    
Available for sale, Fair Value 512,563 526,329
Held to maturity 62,798 65,152
Equity securities 2,598 2,430
Loans held for sale 805  
Net loans 3,953,431 3,830,062
Accrued interest receivable 17,633 15,632
Mortgage servicing rights 2,099 2,314
Restricted equity securities (FHLB and other) 12,457 10,220
Other assets - interest rate swaps 15,583 20,537
Total assets 4,848,951 4,608,527
Financial liabilities:    
Deposits 4,431,901 4,404,117
Short-term borrowings 32,904 15,900
Long-term debt 134,982 98,875
Subordinated debt 86,456 32,506
Junior subordinated debt 7,293 8,167
Accrued interest payable 6,792 5,503
Other liabilities - interest rate swaps 15,345 20,151
Total liabilities 4,715,673 4,585,219
Level 1    
Financial assets:    
Cash and due from banks 268,984 135,851
Investment securities:    
Available for sale, Fair Value 30,998 167,551
Equity securities 2,598 2,430
Level 2    
Investment securities:    
Available for sale, Fair Value 480,577 354,156
Held to maturity 62,798 65,152
Loans held for sale 805  
Accrued interest receivable 17,633 15,632
Mortgage servicing rights 2,099 2,314
Restricted equity securities (FHLB and other) 12,457 10,220
Other assets - interest rate swaps 15,583 20,537
Financial liabilities:    
Deposits 4,431,901 4,404,117
Short-term borrowings 32,904 15,900
Long-term debt 134,982 98,875
Subordinated debt 86,456 32,506
Junior subordinated debt 7,293 8,167
Accrued interest payable 6,792 5,503
Other liabilities - interest rate swaps 15,345 20,151
Level 3    
Investment securities:    
Available for sale, Fair Value 988 4,622
Net loans $ 3,953,431 $ 3,830,062
v3.26.1
Derivatives and hedging activities - Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Derivatives, Fair Value    
Amount of reclassification as a reduction to interest income $ 0  
Amortized Amount of the Hedged Assets/(Liabilities) 15,896 $ 21,005
Fair value hedges | Derivatives designated as hedging instruments    
Derivatives, Fair Value    
Amortized Amount of the Hedged Assets/(Liabilities) 139,219 205,926
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) 303 434
Fair value hedges | Derivatives designated as hedging instruments | Interest rate swaps    
Derivatives, Fair Value    
Amortized Amount of the Hedged Assets/(Liabilities) $ 139,219 $ 155,731
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Debt Securities, Available-for-Sale, Excluding Accrued Interest Debt Securities, Available-for-Sale, Excluding Accrued Interest
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) $ 303 $ 239
Amortized Cost Basis Amount of the Hedged Assets 139,200 155,700
Amounts of designated hedged items $ 75,000 $ 100,000
Hedged Asset, Statement of Financial Position [Extensible Enumeration] Debt Securities, Available-for-Sale, Excluding Accrued Interest Debt Securities, Available-for-Sale, Excluding Accrued Interest
Fair value hedges | Derivatives designated as hedging instruments | Fixed rate loans    
Derivatives, Fair Value    
Amortized Amount of the Hedged Assets/(Liabilities)   $ 50,195
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)   195
Hedged Asset, carrying value $ 0 $ 50,000
v3.26.1
Derivatives and hedging activities - Fair Values of Derivative Instruments (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
security
Dec. 31, 2024
USD ($)
security
Derivatives, Fair Value    
Asset derivatives fair value $ 15,896 $ 21,005
Liability derivatives fair value 15,988 21,065
Interest rate swaps    
Derivatives, Fair Value    
Asset derivatives fair value 15,583 20,537
Derivatives designated as hedging instruments | Other Liabilities.    
Derivatives, Fair Value    
Liability derivatives fair value 329 447
Derivatives designated as hedging instruments | Interest rate products | Other Liabilities.    
Derivatives, Fair Value    
Notional amount 75,000  
Liability derivatives fair value 329 447
Derivatives not designated as hedging instruments | Other Assets.    
Derivatives, Fair Value    
Asset derivatives fair value 15,898 21,006
Derivatives not designated as hedging instruments | Other Liabilities.    
Derivatives, Fair Value    
Liability derivatives fair value 15,659 20,619
Derivatives not designated as hedging instruments | Interest rate products | Other Assets.    
Derivatives, Fair Value    
Notional amount 368,468  
Asset derivatives fair value 15,896 21,005
Derivatives not designated as hedging instruments | Interest rate products | Other Liabilities.    
Derivatives, Fair Value    
Notional amount 368,468  
Liability derivatives fair value 15,659 20,619
Derivatives not designated as hedging instruments | Other contracts | Other Assets.    
Derivatives, Fair Value    
Notional amount 34,021  
Asset derivatives fair value 2 1
Derivatives not designated as hedging instruments | Other contracts | Other Liabilities.    
Derivatives, Fair Value    
Notional amount 5,826  
Derivatives not designated as hedging instruments | Risk participation agreements    
Derivatives, Fair Value    
Notional amount $ 34,000 $ 24,700
Derivatives not designated as hedging instruments | Interest rate swaps    
Derivatives, Fair Value    
Number of instruments held | security 164 147
Derivative asset notional amount $ 402,500 $ 322,700
Derivative liability notional amount 374,300 305,100
Notional amount $ 368,500 $ 297,900
v3.26.1
Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss)      
Income in which the effects of fair value or cash flow hedges are recorded $ (64) $ 632 $ (824)
The effects of fair value and cash flow hedging:      
Amount of (loss) reclassified from AOCI into income - Excluded Component     $ (48)
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]     Interest Income (Expense), Operating
Interest income      
Derivative Instruments, Gain (Loss)      
Income in which the effects of fair value or cash flow hedges are recorded (127) (267) $ 142
The effects of fair value and cash flow hedging:      
Hedged items (131) (899) 841
Derivatives designated as hedging instruments $ 4 $ 632 (681)
Amount of (loss) gain reclassified from AOCI into income     $ (48)
v3.26.1
Derivatives and hedging activities - Effect of Derivative Instruments Not Designated as Hedging Instruments on the Consolidated Statements of Income and Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fee Income | Noninterest income (expense)      
Derivative Instruments, Gain (Loss)      
Amount of Gain or (Loss) Recognized in Income on Derivatives $ 1,256 $ 368 $ 652
Derivatives not designated as hedging instruments      
Derivative Instruments, Gain (Loss)      
Amount of Gain or (Loss) Recognized in Income on Derivatives (271) (90) (268)
Derivatives not designated as hedging instruments | Interest rate products | Noninterest income (expense)      
Derivative Instruments, Gain (Loss)      
Amount of Gain or (Loss) Recognized in Income on Derivatives (149) (83) (262)
Derivatives not designated as hedging instruments | Other contracts | Noninterest income (expense)      
Derivative Instruments, Gain (Loss)      
Amount of Gain or (Loss) Recognized in Income on Derivatives $ (122) $ (7) $ (6)
v3.26.1
Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Offsetting of Derivative Assets    
Gross Amounts of Recognized Assets $ 15,896 $ 21,005
Net Amounts of Assets presented in the Balance Sheet 15,896 21,005
Gross Amounts Not Offset presented in the Balance Sheet - Cash Collateral Posted 8,960 15,900
Net Amount 6,936 5,105
Offsetting of Derivative Liabilities    
Gross Amounts of Recognized Liabilities 15,988 21,065
Net Amounts of Assets presented in the Balance Sheet $ 15,988 $ 21,065
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
Gross Amounts Not Offset presented in the Balance Sheet - Financial Instruments $ 15,988 $ 21,065
Cash collateral paid but not offset $ 2,200  
v3.26.1
Derivatives and hedging activities - Credit-risk-related Contingent Features (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Derivatives    
Termination value of derivatives $ 15,988 $ 21,065
Cash Collateral Posted 8,960 15,900
Credit-risk contract    
Derivatives    
Termination value of derivatives 2,300 350
Cash Collateral Posted $ 2,200 $ 800
v3.26.1
Stock plans - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended 24 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Restricted Stock        
Share-based Compensation Arrangement by Share-based Payment Award        
Weighted average vesting period 3 years 9 months 18 days      
Unrecognized compensation expense $ 2.5      
2017 Plan        
Share-based Compensation Arrangement by Share-based Payment Award        
Salaries and employee benefits expense $ 1.0 $ 0.6 $ 0.9  
2023 Plan        
Share-based Compensation Arrangement by Share-based Payment Award        
Common stock available for grant as awards 17,104      
Salaries and employee benefits expense $ 1.0 $ 0.6 $ 0.9  
2023 Plan | Non-Performance restricted stock        
Share-based Compensation Arrangement by Share-based Payment Award        
Shares or units vesting period 3 years     3 years
2023 Plan | Performance-based restricted stock awards        
Share-based Compensation Arrangement by Share-based Payment Award        
Granted shares 41,892 23,243    
Shares or units vesting period 3 years      
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units 3 years      
Average return on equity period used for conditions for vesting of performance-based restricted stock units 3 years      
2023 Plan | Time based restricted stock awards        
Share-based Compensation Arrangement by Share-based Payment Award        
Granted shares 36,338 8,895    
2023 Plan | Restricted Stock        
Share-based Compensation Arrangement by Share-based Payment Award        
Shares or units vesting period 7 years      
FNCB 2023 Equity Incentive Plan | FNCB        
Share-based Compensation Arrangement by Share-based Payment Award        
Weighted average vesting period 40 months      
v3.26.1
Stock plans - Schedule of Activity Related to Restricted Stock (Details) - Incentive plans in aggregate - shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award      
Nonvested, January 1 38,574 58,631 39,470
Assumed in merger   16,890  
Granted shares 65,141 8,894 23,428
Vested shares (24,663) (31,067) (16,791)
Forfeited shares (3,942) (14,774)  
(Forfeited) surrendered shares     12,524
Nonvested, December 31 75,110 38,574 58,631
v3.26.1
Employee benefit plans - Salaries and Employee Benefits Expense - ESOP (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Peoples Security Bank and Trust ESOP      
Peoples Security Bank and Trust ESOP      
Contribution to ESOP $ 0.0 $ 0.0 $ 0.0
v3.26.1
Employee benefit plans - Salaries and Employee Benefits Expense - Profit Sharing (Details) - Retirement Profit Sharing Plan - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Profit Sharing plan      
Company contribution $ 1.7 $ 1.3 $ 1.1
Safe harbor contribution 1.3 1.0 0.8
Discretionary contributions $ 0.4 $ 0.3 $ 0.3
v3.26.1
Employee benefit plans - Salaries and Employee Benefits Expense - SERP and Employee Pension Plan (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jun. 22, 2008
Supplemental Executive Retirement Plans ("SERP")        
Defined Benefit Plan Disclosure        
Maximum annual benefit in excess of federal limits (as a percent) 6.00%      
Employee benefit plan liability   $ 223    
Employee benefit plan expense   43 $ 19  
Defined benefit plan accrued liabilities $ 4,900 5,100    
Compensation expense 500 400 $ 400  
Supplemental Executive Retirement Plans ("SERP") | FNCB        
Defined Benefit Plan Disclosure        
Defined benefit plan accrued liabilities $ 2,000      
Pension Benefits        
Defined Benefit Plan Disclosure        
Retirement age period for fixed benefits payable 65 years      
Benefits accrued under employees' pension plan       $ 0
Increase (decrease) in accumulated benefit obligation $ 300 $ (900)    
Discount rate, Obligation 5.17% 5.38% 4.73%  
v3.26.1
Employee benefit plans - Summary of Pension and Postretirement Life Insurance Plans (Details) - Pension Benefits - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change in benefit obligation:    
Benefit obligation, beginning $ 12,744 $ 13,845
Interest cost 661 634
Change in experience loss 103 77
Change in actuarial assumptions 252 (867)
Benefits paid (950) (945)
Benefit obligation, ending 12,810 12,744
Change in plan assets:    
Fair value of plan assets, beginning 18,532 17,609
Actual return on plan assets 2,324 1,868
Benefits paid (950) (945)
Fair value of plan assets, ending 19,906 18,532
Funded status at end of year $ 7,096 $ 5,788
v3.26.1
Employee benefit plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amounts recognized in the accumulated other comprehensive loss consist of:      
Net amount recognized $ 1,700 $ 2,230  
Pension Benefits      
Defined Benefit Plan Disclosure      
(Other assets)/other liabilities (7,096) (5,788)  
Amounts recognized in the accumulated other comprehensive loss consist of:      
Net actuarial gain (2,178) (2,852)  
Deferred taxes 478 622  
Net amount recognized (1,700) (2,230)  
Accumulated benefit obligation $ 12,810 $ 12,744 $ 13,845
v3.26.1
Employee benefit plans - Components of Net Periodic Pension Income and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Other changes in plan assets and benefit obligations recognized in other comprehensive income:    
Net loss $ 2,178 $ 2,852
Pension Benefits    
Components of net periodic pension benefit:    
Interest cost 661 634
Expected return on plan assets (1,348) (1,281)
Amortization of unrecognized net loss 52 141
Net periodic pension benefit: (635) (506)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:    
Net loss 662 634
Deferred tax (145) (138)
Total recognized in other comprehensive income 517 496
Total recognized in net period pension cost and other comprehensive income $ (118) $ (10)
v3.26.1
Employee benefit plans - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations and Related Expenses (Details) - Pension Benefits
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure      
Discount rate, Obligation 5.17% 5.38% 4.73%
Discount rate, Expense 5.38% 4.73% 4.93%
Expected long-term return on plan assets 7.50% 7.50% 7.50%
v3.26.1
Employee benefit plans - Schedule of Pension Plan Weighted-Average Asset Allocations (Details) - Pension Benefits
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure    
Weighted-average asset allocations 100.00% 100.00%
Cash and cash equivalents    
Defined Benefit Plan Disclosure    
Weighted-average asset allocations 16.10% 1.40%
Equity securities    
Defined Benefit Plan Disclosure    
Weighted-average asset allocations 20.20% 50.90%
Corporate bonds    
Defined Benefit Plan Disclosure    
Weighted-average asset allocations 42.30% 29.00%
U.S. government securities    
Defined Benefit Plan Disclosure    
Weighted-average asset allocations 21.40% 18.70%
v3.26.1
Employee benefit plans - Fair Value Measurement of Pension Plan Assets (Details) - Pension Benefits - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure      
Fair value of pension plan assets $ 19,906 $ 18,532 $ 17,609
Cash and cash equivalents      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 3,102 255  
U.S. large cap      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 3,555 8,598  
International      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 501 853  
U.S. Treasury securities      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 3,514 1,667  
U.S. Government Agencies      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 770 1,791  
Corporate bonds      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 8,464 5,368  
Level 1      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 7,158 9,706  
Level 1 | Cash and cash equivalents      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 3,102 255  
Level 1 | U.S. large cap      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 3,555 8,598  
Level 1 | International      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 501 853  
Level 2      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 12,748 8,826  
Level 2 | U.S. Treasury securities      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 3,514 1,667  
Level 2 | U.S. Government Agencies      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets 770 1,791  
Level 2 | Corporate bonds      
Defined Benefit Plan Disclosure      
Fair value of pension plan assets $ 8,464 $ 5,368  
v3.26.1
Employee benefit plans - Salaries and Employee Benefits Expense - Investment Percentages (Details) - Pension Benefits - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure    
Amount of company's common stock included in equity securities $ 0 $ 0
Equity Securities    
Defined Benefit Plan Disclosure    
Maximum diversification (as a percent) 10.00%  
Cash Equivalents    
Defined Benefit Plan Disclosure    
Defined benefit plan, target allocation (as a percent) 10.00%  
Fixed Income    
Defined Benefit Plan Disclosure    
Defined benefit plan, target allocation (as a percent) 70.00%  
Equity    
Defined Benefit Plan Disclosure    
Defined benefit plan, target allocation (as a percent) 20.00%  
v3.26.1
Employee benefit plans - Schedule of Benefit Payments Expected to be Paid (Details) - Pension Benefits
$ in Thousands
Dec. 31, 2025
USD ($)
Defined Benefit Plan Disclosure  
2026 $ 1,043
2027 1,049
2028 1,038
2029 1,021
2030 1,017
Thereafter 4,836
Total $ 10,004
v3.26.1
Income taxes - Foreign Income and Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income taxes      
Foreign income tax expense $ 0 $ 0 $ 0
v3.26.1
Income taxes - Current and Deferred Amounts of Provision for Income Taxes Expense (Benefit) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current tax provision      
Federal $ 7,007 $ 3,299 $ 3,853
State 1,326 320  
Total current tax provision 8,333 3,619 3,853
Deferred tax provision (benefit)      
Federal 4,655 (3,449) 1,268
State 59 (200)  
Total deferred tax provision (benefit) 4,714 (3,649) 1,268
Total income tax expense (benefit) $ 13,047 $ (30) $ 5,121
v3.26.1
Income taxes - Components of Net Deferred Tax Asset (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Allowance for credit losses $ 8,706 $ 9,217
Lease liability 4,043 2,774
Defined benefit plan 1,544 1,280
Deferred compensation 1,015 1,046
Investment securities available for sale 6,391 10,681
Purchase accounting 5,625 9,084
Built-in loss carryforward 7,371 7,331
Other 1,294 1,285
Total 35,989 42,698
Deferred tax liabilities:    
Lease right-of-use assets 3,902 2,684
Premises and equipment, net 2,639 1,974
Deferred loan costs 396 467
Accrued compensation 1,632 803
Other 865 1,082
Total 9,434 7,010
Net deferred tax asset 26,555 35,688
Annual limitation 4,800 4,800
Built-in loss carryforwards $ 33,600 $ 33,600
v3.26.1
Income taxes - Reconciliation of Effective Income Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income taxes      
Federal provision for income tax at statutory rate $ 15,169 $ 1,778 $ 6,825
State income tax, net of federal benefit $ 1,094 $ 95 $ 397
Effective Income Tax Rate Reconciliation, State and Local Jurisdiction, Contribution Greater than 50 Percent, Tax Effect [Extensible Enumeration] NEW JERSEY, NEW YORK, PENNSYLVANIA NEW JERSEY, NEW YORK, PENNSYLVANIA NEW JERSEY, NEW YORK, PENNSYLVANIA
Tax credit, net of amortization $ (1,285) $ (631) $ (755)
Tax-exempt interest income, net (1,591) (1,237) (1,057)
Income from bank owned life insurance (429) (360) (221)
Nondeductible transaction costs   206 179
Other, net 89 119 (247)
Total income tax expense (benefit) $ 13,047 $ (30) $ 5,121
Tax Jurisdiction of Domicile [Extensible Enumeration] country:US country:US country:US
Provision for income tax at statutory rate (as percentage) 21.00% 21.00% 21.00%
State income tax, net of federal benefit (as percentage) 1.51% 1.16% 1.22%
Tax credit, net of amortization (as percentage) (1.78%) (7.45%) (2.32%)
Tax-exempt interest income, net (as percentage) (2.20%) (14.61%) (3.25%)
Income from bank owned life insurance (as percentage) (0.59%) (4.25%) (0.68%)
Nondeductible transaction costs (as percentage)   2.43% 0.55%
Other, net (as percentage) 0.12% 1.36% (0.76%)
Total (as percentage) 18.06% (0.36%) 15.76%
v3.26.1
Income taxes - Income taxes paid (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income taxes      
Federal $ 6,700 $ 1,480 $ 3,075
Total 7,564 1,854 3,462
New York      
Income taxes      
State (10) 124 47
New Jersey      
Income taxes      
State 300 100 $ 340
Pennsylvania      
Income taxes      
State 414    
Other States      
Income taxes      
State $ 160 $ 150  
v3.26.1
Parent Company financial statements - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets:        
Cash and cash equivalents $ 268,984 $ 135,851    
Equity securities 2,598 2,430    
Other assets 70,677 74,919    
Total assets 5,270,578 5,091,657    
Liabilities and Stockholders' Equity:        
Subordinated debt 83,187 33,000    
Junior subordinated debt 8,140 8,039    
Accrued interest payable 6,792 5,503    
Other liabilities 51,470 54,076    
Stockholders' equity 519,847 468,950 $ 340,422 $ 315,350
Total liabilities and stockholders' equity 5,270,578 5,091,657    
Bank        
Assets:        
Cash and cash equivalents 2,245 1,151 $ 188 $ 359
Equity securities 1,794 1,657    
Investment in bank subsidiary 599,582 499,446    
Due from subsidiaries $ 505 $ 486    
Other Receivable, after Allowance for Credit Loss, Related Party [Extensible Enumeration] Subsidiaries [Member] Subsidiaries [Member]    
Other assets $ 7,504 $ 7,813    
Total assets 611,630 510,553    
Liabilities and Stockholders' Equity:        
Subordinated debt 83,187 33,000    
Accrued interest payable 320 177    
Stockholders' equity 519,847 468,950    
Total liabilities and stockholders' equity 611,630 510,553    
Bank | Related party        
Liabilities and Stockholders' Equity:        
Junior subordinated debt 8,140 8,039    
Bank | Nonrelated Party        
Liabilities and Stockholders' Equity:        
Other liabilities $ 136 $ 387    
v3.26.1
Parent Company financial statements - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income:      
Dividends from subsidiaries $ 160 $ 89 $ 4
Gains (losses) on equity securities 168 132 (11)
Expense:      
Acquisition related expenses 236 16,200 1,816
Interest expense on subordinated debt 4,967 1,774 1,774
Income tax benefit 13,047 (30) 5,121
Net income 59,187 8,498 27,380
Bank      
Income:      
Dividends from subsidiaries 30,642 20,593 20,158
Other income 155 105 4
Gains (losses) on equity securities 137 130 (11)
Total income 30,934 20,828 20,151
Expense:      
Acquisition related expenses 3 1,877 1,580
Interest expense on subordinated debt 5,712 2,189 1,774
Other expenses 1,745 1,551 1,538
Total expenses 7,460 5,617 4,892
Income before taxes and undistributed income 23,474 15,211 15,259
Income tax benefit (1,581) (1,464) (857)
Income before undistributed income of subsidiaries 25,055 16,675 16,116
Equity in undistributed income of subsidiaries (distributions in excess of net income) 34,132 (8,177) 11,264
Net income $ 59,187 $ 8,498 $ 27,380
v3.26.1
Parent Company financial statements - 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 $ 59,187 $ 8,498 $ 27,380
Adjustments:      
Amortization expense related to acquired borrowings 468 387  
Amortization of subordinated debt issuance costs 237    
Net (gains) losses on investment securities 2,241 (1) (81)
Decrease (increase) in other assets 5,538 7,772 (2,085)
(Decrease) increase in other liabilities (8,298) 2,273 (2,833)
Stock based compensation 348 786 888
Net cash provided by operating activities 54,275 34,725 33,252
Cash flows from investing activities:      
Purchases of equity investments without readily determinable fair value 328 802  
Cash balance acquired in merger, net of cash outlay   28,067  
Proceeds from sales/calls of equity securities   1,567  
Net cash (used in) provided by investing activities (24,438) 386,345 (25,754)
Cash flows used in financing activities:      
Retirement of common stock     (5,886)
Proceeds from the issuance of subordinated debt, net of issuance costs 82,950    
Repayment of subordinated debt (33,000)    
Net cash provided by (used in) financing activities 103,296 (472,584) 141,999
Increase (decrease) in cash and cash equivalents 133,133 (51,514) 149,497
Cash and cash equivalents at beginning of period 135,851    
Cash and cash equivalents at end of period 268,984 135,851  
Bank      
Cash flows from operating activities:      
Net income 59,187 8,498 27,380
Adjustments:      
Amortization expense related to acquired borrowings 101 47  
Amortization of subordinated debt issuance costs 237    
Net (gains) losses on investment securities (137) (130) 11
(Undistributed net income of subsidiaries) distributions in excess of net income (34,132) 8,177 (11,264)
Decrease (increase) in other assets 118 (1,430) 359
(Decrease) increase in other liabilities (108) 1,252  
Stock based compensation 348 786 888
Net cash provided by operating activities 25,614 17,200 17,374
Cash flows from investing activities:      
Purchases of equity investments without readily determinable fair value (328) (802)  
Cash balance acquired in merger, net of cash outlay   1,091  
Investment in bank subsidiary (50,000)    
Proceeds from sales/calls of equity securities 500 1,567  
Net cash (used in) provided by investing activities (49,828) 1,856  
Cash flows used in financing activities:      
Retirement of common stock     (5,886)
Proceeds from the issuance of subordinated debt, net of issuance costs 82,950    
Repayment of subordinated debt (33,000)    
Cash dividends paid (24,642) (18,093) (11,659)
Net cash provided by (used in) financing activities 25,308 (18,093) (17,545)
Increase (decrease) in cash and cash equivalents 1,094 963 (171)
Cash and cash equivalents at beginning of period 1,151 188 359
Cash and cash equivalents at end of period $ 2,245 $ 1,151 $ 188
v3.26.1
Regulatory matters (Details)
$ in Millions
12 Months Ended
Jan. 01, 2016
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Schedule of Capitalization      
Capital stock (as a percent)   100.00%  
Period over which the Company may only declare and pay dividends out of accumulated net earnings, including accumulated net earnings acquired as a result of a merger   7 years  
Funds available for transfers   $ 55.8  
Loans outstanding   $ 0.0 $ 0.0
Capital conservation buffer 2.50    
Capital conservation buffer   0.025  
One risk based capital actual   0.025  
Buffer total risk based capital   0.025  
Maximum      
Schedule of Capitalization      
Net earnings which must set aside as a surplus (as a percent)   10.00%  
Minimum      
Schedule of Capitalization      
Net earnings to surplus funds (as a percent)   10.00%  
Risk-weighted assets plus capital conversion   0.07  
Tier I common equity -Ratio   0.045  
weighted assets ratio   0.085  
Tier 1 capital to risk-weighted assets, Actual Ratio   0.06  
Total capital to risk-weighted assets, Actual Ratio   0.08  
Total risk-based capital to risk-weighted assets   0.105  
Tier 1 capital to average assets, Actual Ratio   0.04  
v3.26.1
Regulatory matters - Schedule of Bank's Capital Amounts and Ratios (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Company    
Common equity Tier 1 capital to risk-weighted assets    
Common equity Tier 1 capital to risk-weighted assets, Actual Amount $ 440,852 $ 399,461
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio 11.03 10.16
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount $ 179,784 $ 176,971
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio 4.5 4.5
Tier 1 capital to risk-weighted assets    
Tier 1 capital to risk-weighted assets, Actual Amount $ 450,852 $ 409,461
Tier 1 capital to risk-weighted assets, Actual Ratio 11.28 10.41
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount $ 239,712 $ 235,962
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio 6 6
Total capital to risk-weighted assets    
Total capital to risk-weighted assets, Actual Amount $ 571,887 $ 485,117
Total capital to risk-weighted assets, Actual Ratio 14.31 12.34
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount $ 319,617 $ 314,616
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio 8 8
Tier 1 capital to average assets    
Tier 1 capital to average assets, Actual Amount $ 450,852 $ 409,461
Tier 1 capital to average assets, Actual Ratio 8.84 7.97
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount $ 204,039 $ 205,493
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio 4 4
Bank    
Common equity Tier 1 capital to risk-weighted assets    
Common equity Tier 1 capital to risk-weighted assets, Actual Amount $ 520,587 $ 429,958
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio 13.06 10.95
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount $ 179,427 $ 176,640
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio 4.5 4.5
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount $ 259,172 $ 255,147
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio 6.5 6.5
Tier 1 capital to risk-weighted assets    
Tier 1 capital to risk-weighted assets, Actual Amount $ 520,587 $ 429,958
Tier 1 capital to risk-weighted assets, Actual Ratio 13.06 10.95
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount $ 239,236 $ 235,520
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio 6 6
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount $ 318,981 $ 314,027
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio 8 8
Total capital to risk-weighted assets    
Total capital to risk-weighted assets, Actual Amount $ 558,435 $ 472,614
Total capital to risk-weighted assets, Actual Ratio 14.01 12.04
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount $ 318,981 $ 314,027
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio 8 8
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount $ 398,726 $ 392,534
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio 10 10
Tier 1 capital to average assets    
Tier 1 capital to average assets, Actual Amount $ 520,587 $ 429,958
Tier 1 capital to average assets, Actual Ratio 10.22 8.37
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount $ 203,726 $ 205,431
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio 4 4
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount $ 254,658 $ 256,788
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio 5 5
v3.26.1
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accumulated Other Comprehensive Loss    
Net unrealized loss on investment securities available for sale $ (29,144) $ (48,959)
Income tax benefit (6,390) (10,681)
Net of income taxes (22,754) (38,278)
Benefit plan adjustments (2,178) (2,852)
Income tax benefit (478) (622)
Net of income taxes (1,700) (2,230)
Derivative adjustments (303) (239)
Income tax benefit (66) (52)
Net of income taxes (237) (187)
Accumulated other comprehensive loss $ (24,691) $ (40,695)
v3.26.1
Accumulated Other Comprehensive Loss - Other Comprehensive Income and Related Tax Effects (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Loss      
Unrealized gain on investment securities available for sale $ 17,574 $ 2,569 $ 14,804
Net loss (gain) on the sale of investment securities available for sale (1) 2,241 (1) (81)
Other comprehensive income (loss) on available for sale debt securities 19,815 2,568 14,723
Amortization of actuarial loss 52 141 194
Actuarial gain 622 1,377 935
Net change in benefit plan liabilities 674 1,518 1,129
Net change in derivatives (64) 632 (824)
Other comprehensive income 20,425 4,718 15,028
Income tax expense 4,421 1,062 3,043
Other comprehensive income, net of income tax expense $ 16,004 $ 3,656 $ 11,985