Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2024 and 2023.

	Beginning balance		Charge-offs			Recoveries		Allowance for Credit Losses on PCD Acquired Loans			Provision for credit losses			Ending balance
(In Thousands)	For the Three Months Ended June 30, 2024
Allowance for credit losses:
Agriculture and farmland	$	12	$	—		$	—	$	—		$	—		$	12
Construction		1,523		—			2		—			316			1,841
Commercial & industrial		2,962		(4	)		6		—			471			3,435
Commercial real estate
Multifamily		1,592		—			2		—			320			1,914
Owner occupied		5,738		—			—		—			143			5,881
Non-owner occupied		6,099		—			4		2,300			(377	)		8,026
Residential real estate
First liens		4,675		—			6		—			(634	)		4,047
Second liens and lines of credit		1,071		—			3		—			(97	)		977
Municipal		68		—			—		—			(4	)		64
Consumer		102		(2	)		3		—			(12	)		91
Total	$	23,842	$	(6	)	$	26	$	2,300		$	126		$	26,288
	Beginning balance		Charge-offs			Recoveries		Provision for credit losses			Ending balance
(In Thousands)	For the Three Months Ended June 30, 2023
Allowance for credit losses:
Agriculture and farmland	$	208	$	—		$	—	$	1		$	209
Construction		813		—			—		(85	)		728
Commercial & industrial		930		—			—		(201	)		729
Commercial real estate
Multifamily		730		—			—		(57	)		673
Owner occupied		1,593		—			—		(34	)		1,559
Non-owner occupied		4,315		—			12		23			4,350
Residential real estate							—		—
First liens		1,508		—			27		(138	)		1,397
Second liens and lines of credit		402		—			58		(77	)		383
Municipal		7		—			—		—			7
Consumer		20		—			—		2			22
Unallocated		—		—			—		171			171
Total	$	10,526	$	—		$	97	$	(395	)	$	10,228

	Beginning balance		Charge-offs			Recoveries		Allowance for Credit Losses on PCD Acquired Loans		Provision for credit losses			Ending balance
(In Thousands)	For the Six Months Ended June 30, 2024
Allowance for credit losses:
Agriculture and farmland	$	12	$	—		$	—	$	—	$	—		$	12
Construction		959		—			2		—		880			1,841
Commercial & industrial		2,940		(10	)		8		—		497			3,435
Commercial real estate
Multifamily		1,483		—			2		—		429			1,914
Owner occupied		6,572		(6	)		1		—		(686	)		5,881
Non-owner occupied		5,773		(54	)		4		2,300		3			8,026
Residential real estate
First liens		4,778		—			13		—		(744	)		4,047
Second liens and lines of credit		1,072		—			10		—		(105	)		977
Municipal		79		—			—		—		(15	)		64
Consumer		99		(25	)		5		—		12			91
Total	$	23,767	$	(95	)	$	45	$	2,300	$	271		$	26,288
	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 Six Months Ended June 30, 2023
Allowance for credit losses:
Agriculture and farmland	$	279	$	(190	)	$	—	$	—	$	120		$	209
Construction		274		513			—		—		(59	)		728
Commercial & industrial		583		283			—		—		(137	)		729
Commercial real estate
Multifamily		480		340			—		—		(147	)		673
Owner occupied		635		760			—		—		164			1,559
Non-owner occupied		1,116		3,195			—		12		27			4,350
Residential real estate
First liens		1,029		635			—		28		(295	)		1,397
Second liens and lines of credit		218		140			—		59		(34	)		383
Municipal		12		(2	)		—		—		(3	)		7
Consumer		40		(19	)		—		—		1			22
Unallocated		—		—			—		—		171			171
Total	$	4,666	$	5,655		$	—	$	99	$	(192	)	$	10,228

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

The following tables present 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 June 30, 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	$	—	$	—	$	—	$	189
Construction		10		—		10		89
Commercial & industrial		128		83		211		—
Commercial real estate
Multifamily		—		—		—		—
Owner occupied		2,615		629		3,244		—
Non-owner occupied		352		3,919		4,271		—
Residential real estate
First liens		1,896		—		1,896		307
Second liens and lines of credit		332		—		332		39
Municipal		—		—		—		—
Consumer		1		—		1		—
Total	$	5,334	$	4,631	$	9,965	$	624
	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 June 30, 2024 and December 31, 2023.

	June 30, 2024
(In Thousands)	Real Estate		Business Assets		Other		Total
Agriculture and farmland loans	$	—	$	—	$	—	$	—
Construction		10		—		—		10
Commercial & industrial loans		—		211		—		211
Commercial real estate loans
Multifamily		—		—		—		—
Owner occupied		3,244		—		—		3,244
Non-owner occupied		4,271		—		—		4,271
Residential real estate loans
First liens		1,896		—		—		1,896
Second liens and lines of credit		332		—		—		332
Municipal		—		—		—		—
Consumer		—		—		1		1
	$	9,753	$	211	$	1	$	9,965
	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 June 30, 2024 and December 31, 2023.

		June 30, 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		$	—	$	—	$	189	$	189	$	66,748	$	66,937
Construction			—		10		89		99		178,598		178,697
Commercial & industrial			50		180		30		260		240,116		240,376
Commercial real estate
Multifamily			—		—		—		—		195,814		195,814
Owner occupied			1,758		618		2,976		5,352		465,193		470,545
Non-owner occupied			—		218		352		570		576,878		577,448
Residential real estate
First liens			1,806		311		1,359		3,476		370,567		374,043
Second liens and lines of credit			233		1		339		573		68,417		68,990
Municipal			—		—		—		—		15,507		15,507
Consumer			8		—		—		8		4,354		4,362
Total		$	3,855	$	1,338	$	5,334	$	10,527	$	2,182,192	$	2,192,719
	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		161,624		161,825
Commercial & industrial			46		1		118		165		232,247		232,412
Commercial real estate
Multifamily			—		—		—		—		176,843		176,843
Owner occupied			156		2,802		137		3,095		471,869		474,964
Non-owner occupied			—		86		1,239		1,325		550,156		551,481
Residential real estate
First liens			719		419		872		2,010		374,082		376,092
Second liens and lines of credit			279		128		97		504		66,144		66,648
Municipal			—		—		—		—		16,740		16,740
Consumer			15		15		7		37		5,207		5,244
Total		$	1,239	$	3,451	$	2,661	$	7,351	$	2,120,759	$	2,128,110

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

The following tables present the classes of the loan portfolio summarized by the internal risk rating system as of June 30, 2024.

	June 30, 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	$	7,626	$	1,409	$	13,990	$	9,248	$	4,962	$	22,036	$	3,977	$	14	$	63,262
Special mention		—		11		—		64		—		1,909		216		—		2,200
Substandard or lower		—		—		—		11		104		1,346		14		—		1,475
Total Agriculture and farmland	$	7,626	$	1,420	$	13,990	$	9,323	$	5,066	$	25,291	$	4,207	$	14	$	66,937
Agriculture and farmland
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		16,724		73,895		39,580		23,160		2,762		10,096		12,188		—		178,405
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		203		—		—		—		—		—		89		292
Total Construction		16,724		74,098		39,580		23,160		2,762		10,096		12,188		89		178,697
Construction
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial & industrial
Pass		22,207		25,273		26,724		21,475		11,990		9,665		113,242		344		230,920
Special mention		18		171		231		110		—		391		6,990		—		7,911
Substandard or lower		—		78		78		116		—		363		893		17		1,545
Total Commercial & industrial		22,225		25,522		27,033		21,701		11,990		10,419		121,125		361		240,376
Commercial & industrial
Current period gross charge-offs		—		—		—		—		4		6		—		—		10
Commercial real estate - Multifamily
Pass		15,170		9,327		87,731		51,266		19,532		10,616		328		—		193,970
Special mention		—		—		—		—		—		1,844		—		—		1,844
Substandard or lower		—		—		—		—		—		—		—		—		—
Total Commercial real estate - Multifamily		15,170		9,327		87,731		51,266		19,532		12,460		328		—		195,814
Commercial real estate - Multifamily
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

	June 30, 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		16,208		55,288		112,341		94,052		49,371		113,755		11,307		—		452,322
Special mention		—		—		3,133		2,437		416		5,971		292		—		12,249
Substandard or lower		—		—		184		—		629		5,032		58		71		5,974
Total Commercial real estate - Owner occupied		16,208		55,288		115,658		96,489		50,416		124,758		11,657		71		470,545
Commercial real estate - Owner occupied
Current period gross charge-offs		—		—		—		—		—		6		—		—		6
Commercial real estate - Non-owner occupied
Pass		30,111		55,951		168,695		117,031		51,523		131,928		10,183		219		565,641
Special mention		—		1,000		—		39		3,399		3,099		—		—		7,537
Substandard or lower		—		—		—		3,919		—		277		—		74		4,270
Total Commercial real estate - Non-owner occupied		30,111		56,951		168,695		120,989		54,922		135,304		10,183		293		577,448
Commercial real estate - Non-owner occupied
Current period gross charge-offs		—		—		—		—		—		54		—		—		54
Municipal
Pass		46		438		—		378		922		2,490		88		—		4,362
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		—		—		—		—
Total Commercial real estate - Municipal		46		438		—		378		922		2,490		88		—		4,362
Municipal
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Total
Pass	$	108,092	$	221,581	$	449,061	$	316,610	$	141,062	$	300,586	$	151,313	$	577	$	1,688,882
Special mention		18		1,182		3,364		2,650		3,815		13,214		7,498		—		31,741
Substandard or lower		—		281		262		4,046		733		7,018		965		251		13,556
Total	$	108,110	$	223,044	$	452,687	$	323,306	$	145,610	$	320,818	$	159,776	$	828	$	1,734,179

The following tables present 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		55,462		45,206		30,593		2,932		6,161		5,446		14,424		1,317		161,541
Special mention		—		—		—		—		—		—		93		—		93
Substandard or lower		—		—		—		98		—		—		—		93		191
Total Construction		55,462		45,206		30,593		3,030		6,161		5,446		14,517		1,410		161,825
Construction
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial & industrial
Pass		29,586		31,653		24,184		13,831		4,285		7,536		119,602		68		230,745
Special mention		—		113		139		—		15		4		1,071		—		1,342
Substandard or lower		—		—		47		—		194		—		43		41		325
Total Commercial & industrial		29,586		31,766		24,370		13,831		4,494		7,540		120,716		109		232,412
Commercial & industrial
Current period gross charge-offs		—		—		—		—		—		—		200		—		200
Commercial real estate - Multifamily
Pass		12,587		80,127		50,320		18,871		6,031		6,737		298		—		174,971
Special mention		—		—		—		—		—		—		—		—		—
Substandard or lower		—		—		—		—		—		1,872		—		—		1,872
Total Commercial real estate - Multifamily		12,587		80,127		50,320		18,871		6,031		8,609		298		—		176,843
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		53,765		127,684		96,193		50,888		39,043		83,753		7,801		6		459,133
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		53,765		128,061		99,318		51,514		47,769		86,144		8,387		6		474,964
Commercial real estate - Owner occupied
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial real estate - Non-owner occupied
Pass		58,210		173,415		118,081		56,025		59,792		78,465		6,177		86		550,251
Special mention		—		—		42		—		—		—		—		—		42
Substandard or lower		—		—		325		—		56		558		249		—		1,188
Total Commercial real estate - Non-owner occupied		58,210		173,415		118,448		56,025		59,848		79,023		6,426		86		551,481
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	$	211,605	$	472,457	$	329,404	$	149,369	$	117,631	$	207,090	$	153,510	$	1,506	$	1,642,572
Special mention		—		490		3,336		—		7,144		1,210		1,935		—		14,115
Substandard or lower		13		—		387		845		2,658		7,397		509		134		11,943
Total	$	211,618	$	472,947	$	333,127	$	150,214	$	127,433	$	215,697	$	155,954	$	1,640	$	1,668,630

The following tables present the amortized cost of these loans based on payment activity, by origination year, as of June 30, 2024 and December 31, 2023.

	June 30, 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	$	16,571	$	41,277	$	91,018	$	87,324	$	37,188	$	88,841	$	9,816	$	—	$	372,035
Nonperforming		—		—		—		26		—		1,982		—		—		2,008
Total Residential real estate - First liens	$	16,571	$	41,277	$	91,018	$	87,350	$	37,188	$	90,823	$	9,816	$	—	$	374,043
Residential real estate - First liens
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate - Second liens and lines of credit
Performing		1,838		971		1,615		380		64		2,131		60,642		998		68,639
Nonperforming		—		—		—		—		—		165		39		147		351
Total Residential real estate - Second liens and lines of credit		1,838		971		1,615		380		64		2,296		60,681		1,145		68,990
Residential real estate - Second liens and lines of credit
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer and other
Performing		679		4,787		355		144		93		72		9,377		—		15,507
Nonperforming		—		—		—		—		—		—		—		—		—
Total Consumer and other		679		4,787		355		144		93		72		9,377		—		15,507
Consumer and other
Current period gross charge-offs		—		2		2		5		1		15		—		—		25
Total
Performing	$	19,088	$	47,035	$	92,988	$	87,848	$	37,345	$	91,044	$	79,835	$	998	$	456,181
Nonperforming		—		—		—		26		—		2,147		39		147		2,359
Total	$	19,088	$	47,035	$	92,988	$	87,874	$	37,345	$	93,191	$	79,874	$	1,145	$	458,540

	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	$	41,984	$	90,220	$	95,232	$	37,966	$	22,934	$	77,331	$	8,982	$	—	$	374,649
Nonperforming		—		—		33		101		208		1,101		—		—		1,443
Total Residential real estate - First liens	$	41,984	$	90,220	$	95,265	$	38,067	$	23,142	$	78,432	$	8,982	$	—	$	376,092
Residential real estate - First liens
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate - Second liens and lines of credit
Performing		1,045		1,702		386		184		205		2,259		60,717		—		66,498
Nonperforming		—		—		—		—		—		—		150		—		150
Total Residential real estate - Second liens and lines of credit		1,045		1,702		386		184		205		2,259		60,867		—		66,648
Residential real estate - Second liens and lines of credit
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer and other
Performing		5,007		437		213		150		73		85		10,770		—		16,735
Nonperforming		—		—		—		—		—		—		5		—		5
Total Consumer and other		5,007		437		213		150		73		85		10,775		—		16,740
Consumer and other
Current period gross charge-offs		—		—		—		—		—		—		1		—		1
Total
Performing	$	48,036	$	92,359	$	95,831	$	38,300	$	23,212	$	79,675	$	80,469	$	—	$	457,882
Nonperforming		—		—		33		101		208		1,101		155		—		1,598
Total	$	48,036	$	92,359	$	95,864	$	38,401	$	23,420	$	80,776	$	80,624	$	—	$	459,480

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	$	435,704
Allowance for credit losses at acquisition		6,603
Non-credit (discount) premium at acquisition		(16,981	)
Par value of acquired loans at acquisition	$	425,326