Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Allowance for Credit Loss [Abstract]

Summary of Allowance for Credit Losses by Loan Segment

The following tables summarize the activity in the allowance for credit losses by loan segment for the three months ended March 31, 2024 and 2023.

	Beginning balance		Charge-offs			Recoveries		Provision for credit losses			Ending balance
(In Thousands)	For the Three Months Ended March 31, 2024
Allowance for credit losses:
Agriculture and farmland	$	12	$	—		$	—	$	—		$	12
Construction		959		—			1		563			1,523
Commercial & industrial		2,940		(6	)		2		26			2,962
Commercial real estate
Multifamily		1,483		—			—		109			1,592
Owner occupied		6,572		(6	)		—		(828	)		5,738
Non-owner occupied		5,773		(54	)		—		380			6,099
Residential real estate
First liens		4,778		—			8		(111	)		4,675
Second liens and lines of credit		1,072		—			6		(7	)		1,071
Municipal		79		—			—		(11	)		68
Consumer		99		(22	)		1		24			102
Total	$	23,767	$	(88	)	$	18	$	145		$	23,842
	Beginning balance, prior to adoption of ASC 326		Impact of adopting ASC 326			Charge-offs		Recoveries			Provision for credit losses			Ending balance
(In Thousands)	For the Three Months Ended March 31, 2023
Allowance for credit losses:
Agriculture and farmland	$	279	$	(190	)	$	—	$	—		$	119		$	208
Construction		274		513			—		—			26			813
Commercial & industrial		583		283			—		—			64			930
Commercial real estate
Multifamily		480		340			—		—			(90	)		730
Owner occupied		635		760			—		—			198			1,593
Non-owner occupied		1,116		3,195			—		—			4			4,315
Residential real estate
First liens		1,029		635			—		1			(157	)		1,508
Second liens and lines of credit		218		140			—		1			43			402
Municipal		12		(2	)		—		—			(3	)		7
Consumer		40		(19	)		—		—			(1	)		20
Total	$	4,666	$	5,655		$	—	$	2		$	203		$	10,526

T

Summary of Amortized Cost Basis of Nonaccrual Loans and Loans Past due 90 Days or Greater and Still Accruing

The following table presents the amortized cost basis of nonaccrual loans and loans past due 90 days or greater and still accruing by segments of the loan portfolio:

	As of March 31, 2024
(In Thousands)	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with a related Allowance for Credit Loss		Total Nonaccrual		Loans 90 days or greater past due still accruing
Agriculture and farmland	$	—	$	—	$	—	$	—
Construction		—		—		—		91
Commercial & industrial		6		—		6		80
Commercial real estate
Multifamily		—		—		—		—
Owner occupied		2,631		—		2,631		—
Non-owner occupied		352		—		352		—
Residential real estate
First liens		2,620		—		2,620		605
Second liens and lines of credit		289		—		289		—
Municipal		—		—		—		—
Consumer		—		—		—		—
Total	$	5,898	$	—	$	5,898	$	776
	As of December 31, 2023
(In Thousands)	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with a related Allowance for Credit Loss		Total Nonaccrual		Loans 90 days or greater past due still accruing
Agriculture and farmland	$	—	$	—	$	—	$	—
Construction		191		—		191		—
Commercial & industrial		53		8		61		58
Commercial real estate
Multifamily		—		—		—		—
Owner occupied		2,465		83		2,548		6
Non-owner occupied		948		281		1,229		—
Residential real estate
First liens		2,346		361		2,707		149
Second liens and lines of credit		294		—		294		—
Municipal		—		—		—		—
Consumer		7		—		7		—
Total	$	6,304	$	733	$	7,037	$	213

Summary by Class of Loans, Carrying Value of Collateral Dependent Nonaccrual Loans and Type of Collateral

The following tables present, by class of loans, the carrying value of collateral dependent nonaccrual loans and type of collateral as of March 31, 2024 and December 31, 2023.

	March 31, 2024
(In Thousands)	Real Estate		Business Assets		Other		Total
Agriculture and farmland loans	$	—	$	—	$	—	$	—
Construction		—		—		—		—
Commercial & industrial loans		—		6		—		6
Commercial real estate loans
Multifamily		—		—		—		—
Owner occupied		2,631		—		—		2,631
Non-owner occupied		352		—		—		352
Residential real estate loans
First liens		2,620		—		—		2,620
Second liens and lines of credit		289		—		—		289
Municipal		—		—		—		—
Consumer		—		—		—		—
	$	5,892	$	6	$	-	$	5,898
	December 31, 2023
(In Thousands)	Real Estate		Business Assets		Other		Total
Agriculture and farmland loans	$	—	$	—	$	—	$	—
Construction		191		—		—		191
Commercial & industrial loans		—		61		—		61
Commercial real estate loans
Multifamily		—		—		—		—
Owner occupied		2,548		—		—		2,548
Non-owner occupied		1,229		—		—		1,229
Residential real estate loans
First liens		2,707		—		—		2,707
Second liens and lines of credit		294		—		—		294
Municipal		—		—		—		—
Consumer		—		—		7		7
	$	6,969	$	61	$	7	$	7,037

Summary of Aging Analysis of the Recorded Investment of Past-Due Loans

The following tables present an aging analysis of the recorded investment of past due loans at March 31, 2024 and December 31, 2023.

		March 31, 2024
(In Thousands)		30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total   Loans
Agriculture and farmland		$	—	$	—	$	—	$	—	$	67,359	$	67,359
Construction			1,300		2,427		91		3,818		190,573		194,391
Commercial & industrial			245		—		86		331		218,393		218,724
Commercial real estate
Multifamily			—		—		—		—		190,146		190,146
Owner occupied			625		3,388		2,631		6,644		482,823		489,467
Non-owner occupied			—		3,920		352		4,272		585,459		589,731
Residential real estate
First liens			1,629		1,190		1,376		4,195		399,105		403,300
Second liens and lines of credit			315		223		97		635		70,425		71,060
Municipal			—		—		—		—		16,810		16,810
Consumer			31		2		—		33		4,440		4,473
Total		$	4,145	$	11,150	$	4,633	$	19,928	$	2,225,533	$	2,245,461
	December 31, 2023
(In Thousands)		30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total   Loans
Agriculture and farmland		$	14	$	—	$	—	$	14	$	65,847	$	65,861
Construction			10		—		191		201		178,282		178,483
Commercial & industrial			46		1		118		165		238,178		238,343
Commercial real estate
Multifamily			—		—		—		—		180,788		180,788
Owner occupied			156		2,802		137		3,095		498,637		501,732
Non-owner occupied			—		86		1,239		1,325		579,647		580,972
Residential real estate
First liens			719		419		872		2,010		400,423		402,433
Second liens and lines of credit			279		128		97		504		70,243		70,747
Municipal			—		—		—		—		16,756		16,756
Consumer			15		15		7		37		5,207		5,244
Total		$	1,239	$	3,451	$	2,661	$	7,351	$	2,234,008	$	2,241,359

Summary of Classes of the Loan Portfolio Summarized by the Internal Risk Rating System

The following table presents the classes of the loan portfolio summarized by the internal risk rating system as of March 31, 2024.

	March 31, 2024
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2024		2023		2022		2021		2020		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Agriculture and farmland
Pass	$	6,690	$	1,428	$	14,236	$	9,414	$	5,063	$	21,213	$	4,266	$	29	$	62,339
Special mention		—		12		—		70		—		1,962		287		—		2,331
Substandard or lower		—		—		—		13		113		2,549		14		—		2,689
Total Agriculture and farmland	$	6,690	$	1,440	$	14,236	$	9,497	$	5,176	$	25,724	$	4,567	$	29	$	67,359
Agriculture and farmland
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		10,038		73,036		51,785		31,831		3,029		12,106		11,662		600		194,087
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		213		—		—		—		—		—		91		304
Total Construction		10,038		73,249		51,785		31,831		3,029		12,106		11,662		691		194,391
Construction
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial & industrial
Pass		3,333		26,451		30,931		24,297		13,660		12,368		99,921		125		211,086
Special mention		—		—		108		—		—		177		5,946		—		6,231
Substandard or lower		—		—		—		116		—		395		896		—		1,407
Total Commercial & industrial		3,333		26,451		31,039		24,413		13,660		12,940		106,763		125		218,724
Commercial & industrial
Current period gross charge-offs		—		—		—		—		—		6		—		—		6
Commercial real estate - Multifamily
Pass		3,153		15,343		86,392		51,492		18,431		13,178		299		—		188,288
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		1,858		—		—		1,858
Total Commercial real estate - Multifamily		3,153		15,343		86,392		51,492		18,431		15,036		299		—		190,146
Commercial real estate - Multifamily
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

	March 31, 2024
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2024		2023		2022		2021		2020		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial real estate - Owner occupied
Pass		3,329		62,493		124,354		95,588		51,074		127,528		9,108		—		473,474
Special mention		—		—		373		3,083		—		6,303		440		—		10,199
Substandard or lower		—		—		—		—		625		5,062		33		74		5,794
Total Commercial real estate - Owner occupied		3,329		62,493		124,727		98,671		51,699		138,893		9,581		74		489,467
Commercial real estate - Owner occupied
Current period gross charge-offs		—		—		—		—		—		6		—		—		6
Commercial real estate - Non-owner occupied
Pass		14,329		58,137		173,631		125,445		55,987		154,617		7,193		—		589,339
Special mention		—		—		—		41		—		—		—		—		41
Substandard or lower		—		—		—		—		—		277		—		74		351
Total Commercial real estate - Non-owner occupied		14,329		58,137		173,631		125,486		55,987		154,894		7,193		74		589,731
Commercial real estate - Non-owner occupied
Current period gross charge-offs		—		—		—		—		—		54		—		—		54
Municipal
Pass		48		449		—		388		924		2,573		91		—		4,473
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		—		—		—		—
Total Commercial real estate - Municipal		48		449		—		388		924		2,573		91		—		4,473
Municipal
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Total
Pass	$	40,920	$	237,337	$	481,329	$	338,455	$	148,168	$	343,583	$	132,540	$	754	$	1,723,086
Special mention		—		12		481		3,194		—		8,442		6,673		—		18,802
Substandard or lower		—		213		—		129		738		10,141		943		239		12,403
Total	$	40,920	$	237,562	$	481,810	$	341,778	$	148,906	$	362,166	$	140,156	$	993	$	1,754,291

The following table presents the classes of the loan portfolio summarized by the internal risk rating system as of December 31, 2023.

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Agriculture and farmland
Pass	$	1,466	$	14,372	$	9,613	$	5,147	$	2,319	$	22,627	$	5,114	$	29	$	60,687
Special mention		—		—		30		—		811		1,206		342		—		2,389
Substandard or lower		13		—		15		121		—		2,576		60		—		2,785
Total Agriculture and farmland	$	1,479	$	14,372	$	9,658	$	5,268	$	3,130	$	26,409	$	5,516	$	29	$	65,861
Agriculture and farmland
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		64,460		52,888		30,993		3,057		5,244		5,816		14,424		1,317		178,199
Special mention		—		—		—		—		—		—		93		—		93
Substandard or lower		—		—		—		98		—		—		—		93		191
Total Construction		64,460		52,888		30,993		3,155		5,244		5,816		14,517		1,410		178,483
Construction
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial & industrial
Pass		29,776		33,213		25,315		14,018		4,429		9,110		120,747		68		236,676
Special mention		—		113		139		—		15		4		1,071		—		1,342
Substandard or lower		—		—		47		—		194		—		43		41		325
Total Commercial & industrial		29,776		33,326		25,501		14,018		4,638		9,114		121,861		109		238,343
Commercial & industrial
Current period gross charge-offs		—		—		—		—		—		—		200		—		200
Commercial real estate - Multifamily
Pass		14,918		80,127		50,320		18,871		6,031		8,351		298		—		178,916
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		1,872		—		—		1,872
Total Commercial real estate - Multifamily		14,918		80,127		50,320		18,871		6,031		10,223		298		—		180,788
Commercial real estate - Multifamily
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial real estate - Owner occupied
Pass		61,336		135,472		98,261		51,485		39,174		91,315		8,852		6		485,901
Special mention		—		377		3,125		—		6,318		—		429		—		10,249
Substandard or lower		—		—		—		626		2,408		2,391		157		—		5,582
Total Commercial real estate - Owner occupied		61,336		135,849		101,386		52,111		47,900		93,706		9,438		6		501,732
Commercial real estate - Owner occupied
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial real estate - Non-owner occupied
Pass		58,335		174,248		126,009		56,468		64,301		93,193		6,376		86		579,016
Special mention		—		—		42		—		—		—		—		—		42
Substandard or lower		—		—		325		—		56		1,284		249		—		1,914
Total Commercial real estate - Non-owner occupied		58,335		174,248		126,376		56,468		64,357		94,477		6,625		86		580,972
Commercial real estate - Non-owner occupied
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Municipal
Pass		529		—		420		1,675		—		2,526		94		—		5,244
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		—		—		—		—
Total Commercial real estate - Municipal		529		—		420		1,675		—		2,526		94		—		5,244
Municipal
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Total
Pass	$	230,820	$	490,320	$	340,931	$	150,721	$	121,498	$	232,938	$	155,905	$	1,506	$	1,724,639
Special mention		—		490		3,336		—		7,144		1,210		1,935		—		14,115
Substandard or lower		13		—		387		845		2,658		8,123		509		134		12,669
Total	$	230,833	$	490,810	$	344,654	$	151,566	$	131,300	$	242,271	$	158,349	$	1,640	$	1,751,423

The following tables present the amortized cost of these loans based on payment activity, by origination year, as of March 31, 2024 and December 31, 2023.

	March 31, 2024
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2024		2023		2022		2021		2020		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Residential real estate - First liens
Performing	$	4,933	$	45,346	$	101,937	$	93,931	$	45,271	$	98,637	$	10,020	$	—	$	400,075
Nonperforming		—		—		—		29		99		3,097		—		—		3,225
Total Residential real estate - First liens	$	4,933	$	45,346	$	101,937	$	93,960	$	45,370	$	101,734	$	10,020	$	—	$	403,300
Residential real estate - First liens
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate - Second liens and lines of credit
Performing		1,547		1,192		1,782		370		165		2,399		63,165		151		70,771
Nonperforming		—		—		—		—		—		140		149		—		289
Total Residential real estate - Second liens and lines of credit		1,547		1,192		1,782		370		165		2,539		63,314		151		71,060
Residential real estate - Second liens and lines of credit
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer and other
Performing		281		4,897		434		179		118		81		10,820		—		16,810
Nonperforming		—		—		—		—		—		—		—		—		—
Total Consumer and other		281		4,897		434		179		118		81		10,820		—		16,810
Consumer and other
Current period gross charge-offs		—		1		2		5		—		14		—		—		22
Total
Performing	$	6,761	$	51,435	$	104,153	$	94,480	$	45,554	$	101,117	$	84,005	$	151	$	487,656
Nonperforming		—		—		—		29		99		3,237		149		—		3,514
Total	$	6,761	$	51,435	$	104,153	$	94,509	$	45,653	$	104,354	$	84,154	$	151	$	491,170

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Residential real estate - First liens
Performing	$	45,236	$	99,877	$	99,972	$	43,063	$	23,404	$	80,456	$	8,982	$	—	$	400,990
Nonperforming		—		—		33		101		208		1,101		—		—		1,443
Total Residential real estate - First liens	$	45,236	$	99,877	$	100,005	$	43,164	$	23,612	$	81,557	$	8,982	$	—	$	402,433
Residential real estate - First liens
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate - Second liens and lines of credit
Performing		1,207		1,818		386		184		336		2,270		64,396		—		70,597
Nonperforming		—		—		—		—		—		—		150		—		150
Total Residential real estate - Second liens and lines of credit		1,207		1,818		386		184		336		2,270		64,546		—		70,747
Residential real estate - Second liens and lines of credit
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer and other
Performing		5,007		437		223		153		73		88		10,770		—		16,751
Nonperforming		—		—		—		—		—		—		5		—		5
Total Consumer and other		5,007		437		223		153		73		88		10,775		—		16,756
Consumer and other
Current period gross charge-offs		—		—		—		—		—		—		1		—		1
Total
Performing	$	51,450	$	102,132	$	100,581	$	43,400	$	23,813	$	82,814	$	84,148	$	—	$	488,338
Nonperforming		—		—		33		101		208		1,101		155		—		1,598
Total	$	51,450	$	102,132	$	100,614	$	43,501	$	24,021	$	83,915	$	84,303	$	—	$	489,936

Schedule of Credit Deteriorated Loans

The Company has purchased loans for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of these loans is as follows.

(In Thousands)	2023
Purchase price of loans at acquisition	$	431,600
Allowance for credit losses at acquisition		4,303
Non-credit (discount) premium at acquisition		(16,981	)
Par value of acquired loans at acquisition	$	418,922