Allowance for Credit Losses - Loans (Tables)

6 Months Ended

Jun. 30, 2024

Allowance for Credit Losses - Loans

Schedule of Loan losses by portfolio segment

The following tables summarize the rollforward of the allowance for credit losses by loan portfolio segment for the three- and six-month periods ending June 30, 2024 and 2023 (in thousands).

	Three months ended June 30, 2024
	Balance at		Charge-				Provision		Balance at
	March 31, 2024		Offs		Recoveries		(Recovery)		June 30, 2024
Commercial real estate (owner occupied)	$	416	$	—	$	6	$	(51)	$	371
Other commercial and industrial		2,667		(189)		9		191		2,678
Commercial real estate (non-owner occupied) - retail		3,606		—		—		(87)		3,519
Commercial real estate (non-owner occupied) - multi-family		1,358		—		1		11		1,370
Other commercial real estate (non-owner occupied)		4,616		—		3		46		4,665
Residential mortgages		847		—		2		3		852
Consumer		1,129		(63)		20		70		1,156
Total	$	14,639	$	(252)	$	41	$	183	$	14,611

	Three months ended June 30, 2023
	Balance at		Charge-				Provision		Balance at
	March 31, 2023		Offs		Recoveries		(Recovery)		June 30, 2023
Commercial real estate (owner occupied)	$	1,320	$	—	$	6	$	191	$	1,517
Other commercial and industrial		2,873		—		1		(25)		2,849
Commercial real estate (non-owner occupied) - retail		1,486		—		—		(9)		1,477
Commercial real estate (non-owner occupied) - multi-family		1,146		—		2		(3)		1,145
Other commercial real estate (non-owner occupied)		3,197		—		3		(113)		3,087
Residential mortgages		1,032		—		1		4		1,037
Consumer		1,078		(30)		72		(11)		1,109
Total	$	12,132	$	(30)	$	85	$	34	$	12,221

	Six months ended June 30, 2024
	Balance at		Charge-				Provision		Balance at
	December 31, 2023		Offs		Recoveries		(Recovery)		June 30, 2024
Commercial real estate (owner occupied)	$	1,529	$	—	$	12	$	(1,170)	$	371
Other commercial and industrial		3,030		(292)		21		(81)		2,678
Commercial real estate (non-owner occupied) - retail		3,488		—		—		31		3,519
Commercial real estate (non-owner occupied) - multi-family		1,430		—		3		(63)		1,370
Other commercial real estate (non-owner occupied)		3,428		—		5		1,232		4,665
Residential mortgages		1,021		—		3		(172)		852
Consumer		1,127		(124)		40		113		1,156
Total	$	15,053	$	(416)	$	84	$	(110)	$	14,611

	Six months ended June 30, 2023
	Balance at		Impact of Adopting		Charge-				Provision		Balance at
	December 31, 2022		ASC 326		Offs		Recoveries		(Recovery)		June 30, 2023
Commercial real estate (owner occupied)	$	—	$	1,380	$	—	$	12	$	125	$	1,517
Other commercial and industrial		—		2,908		—		2		(61)		2,849
Commercial real estate (non-owner occupied) - retail		—		1,432		—		—		45		1,477
Commercial real estate (non-owner occupied) - multi-family		—		1,226		—		3		(84)		1,145
Other commercial real estate (non-owner occupied)		5,972		(2,776)		—		7		(116)		3,087
Commercial (owner occupied real estate and other)		2,653		(2,653)		—		—		—		—
Residential mortgages		1,380		(355)		—		3		9		1,037
Consumer		85		695		(169)		81		417		1,109
Allocation for general risk		653		(653)		—		—		—		—
Total	$	10,743	$	1,204	$	(169)	$	108	$	335	$	12,221

Schedule of loan portfolio and allowance for credit losses

The following tables summarize the loan portfolio and allowance for credit losses (in thousands).

	At June 30, 2024
	Commercial real estate (owner occupied)		Other commercial and industrial		Commercial real estate (non-owner occupied) - retail			Commercial real estate (non-owner occupied) - multi-family	Other commercial real estate (non-owner occupied)		Residential mortgages		Consumer		Total
Loans:
Individually evaluated	$	181	$	1,595	$	—	$	—	$	10,659	$	345	$	12	$	12,792
Collectively evaluated		83,143		152,023		169,148		114,150		224,867		178,217		104,693		1,026,241
Total loans	$	83,324	$	153,618	$	169,148	$	114,150	$	235,526	$	178,562	$	104,705	$	1,039,033
Allowance for credit losses:
Specific reserve allocation	$	—	$	325	$	—	$	—	$	1,595	$	—	$	—	$	1,920
General reserve allocation		371		2,353		3,519		1,370		3,070		852		1,156		12,691
Total allowance for credit losses	$	371	$	2,678	$	3,519	$	1,370	$	4,665	$	852	$	1,156	$	14,611

	At December 31, 2023
	Commercial real estate (owner occupied)		Other commercial and industrial		Commercial real estate (non-owner occupied) - retail			Commercial real estate (non-owner occupied) - multi-family	Other commercial real estate (non-owner occupied)		Residential mortgages		Consumer		Total
Loans:
Individually evaluated	$	187	$	1,694	$	—	$	—	$	8,780	$	173	$	—	$	10,834
Collectively evaluated		88,960		157,730		161,961		110,008		231,506		174,497		102,775		1,027,437
Total loans	$	89,147	$	159,424	$	161,961	$	110,008	$	240,286	$	174,670	$	102,775	$	1,038,271
Allowance for credit losses:
Specific reserve allocation	$	—	$	414	$	—	$	—	$	—	$	—	$	—	$	414
General reserve allocation		1,529		2,616		3,488		1,430		3,428		1,021		1,127		14,639
Total allowance for credit losses	$	1,529	$	3,030	$	3,488	$	1,430	$	3,428	$	1,021	$	1,127	$	15,053

Schedule of amortized cost basis of collateral-dependent non-accrual loans

The following tables present the amortized cost basis of collateral-dependent loans by class of loans (in thousands).

	Collateral Type
June 30, 2024	Real Estate
Commercial:
Commercial real estate (owner occupied)	$	181
Commercial real estate (non-owner occupied):
Other		10,659
Residential mortgages		345
Consumer		12
Total	$	11,197

	Collateral Type
December 31, 2023	Real Estate
Commercial:
Commercial real estate (owner occupied)	$	187
Commercial real estate (non-owner occupied):
Other		8,780
Residential mortgages		173
Total	$	9,140

Schedule of non performing assets

The following table presents non-accrual loans, loans past due over 90 days still accruing interest, and OREO and repossessed assets by portfolio class (in thousands)

	At June 30, 2024
	Non-accrual with no ACL		Non-accrual with ACL		Total non-accrual		Loans past due over 90 days still accruing		OREO and repossessed assets		Total non-performing assets
Commercial real estate (owner occupied)	$	181	$	—	$	181	$	—	$	—	$	181
Other commercial and industrial		—		1,596		1,596		95		216		1,907
Commercial real estate (non-owner occupied) - retail		—		—		—		943		—		943
Commercial real estate (non-owner occupied) - multi-family		—		—		—		—		—		—
Other commercial real estate (non-owner occupied)		7,084		—		7,084		—		1,476		8,560
Residential mortgages		345		50		395		—		15		410
Consumer		12		708		720		—		96		816
Total	$	7,622	$	2,354	$	9,976	$	1,038	$	1,803	$	12,817

	At December 31, 2023
	Non-accrual with no ACL		Non-accrual with ACL		Total non-accrual		Loans past due over 90 days still accruing		OREO and repossessed assets		Total non-performing assets
Commercial real estate (owner occupied)	$	187	$	—	$	187	$	—	$	—	$	187
Other commercial and industrial		—		1,694		1,694		211		—		1,905
Commercial real estate (non-owner occupied) - retail		—		—		—		—		—		—
Commercial real estate (non-owner occupied) - multi-family		—		—		—		—		—		—
Other commercial real estate (non-owner occupied)		8,780		—		8,780		—		—		8,780
Residential mortgages		173		545		718		—		15		733
Consumer		—		788		788		—		—		788
Total	$	9,140	$	3,027	$	12,167	$	211	$	15	$	12,393

Schedule of Commercial and commercial real estate loan portfolios

The following tables present the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system.

	At June 30, 2024
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
	Term Loans Amortized Cost Basis by Origination Year												Cost		to
	2024		2023		2022		2021		2020		Prior		Basis		Term		Total
	(In Thousands)
Commercial real estate (owner occupied)
Pass	$	2,268	$	17,774	$	6,294	$	12,586	$	11,001	$	31,605	$	641	$	906	$	83,075
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		249		—		—		249
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	2,268	$	17,774	$	6,294	$	12,586	$	11,001	$	31,854	$	641	$	906	$	83,324
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial
Pass	$	9,842	$	20,867	$	24,381	$	10,664	$	5,187	$	21,713	$	58,845	$	—	$	151,499
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		519		—		—		1,526		74		—		2,119
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	9,842	$	20,867	$	24,900	$	10,664	$	5,187	$	23,239	$	58,919	$	—	$	153,618
Current period gross charge-offs	$	—	$	—	$	292	$	—	$	—	$	—	$	—	$	—	$	292
Commercial real estate (non-owner occupied) - retail
Pass	$	10,872	$	37,658	$	21,374	$	32,521	$	22,733	$	41,618	$	980	$	—	$	167,756
Special Mention		—		—		310		—		—		1,082		—		—		1,392
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	10,872	$	37,658	$	21,684	$	32,521	$	22,733	$	42,700	$	980	$	—	$	169,148
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate (non-owner occupied) - multi-family
Pass	$	9,213	$	25,324	$	16,599	$	17,070	$	11,819	$	31,323	$	475	$	—	$	111,823
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		945		1,382		—		—		2,327
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	9,213	$	25,324	$	16,599	$	17,070	$	12,764	$	32,705	$	475	$	—	$	114,150
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	12,295	$	31,050	$	36,994	$	47,664	$	16,534	$	63,490	$	7,186	$	—	$	215,213
Special Mention		—		—		—		—		—		3,633		—		—		3,633
Substandard		—		—		860		199		—		15,621		—		—		16,680
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	12,295	$	31,050	$	37,854	$	47,863	$	16,534	$	82,744	$	7,186	$	—	$	235,526
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by risk rating
Pass	$	44,490	$	132,673	$	105,642	$	120,505	$	67,274	$	189,749	$	68,127	$	906	$	729,366
Special Mention		—		—		310		—		—		4,715		—		—		5,025
Substandard		—		—		1,379		199		945		18,778		74		—		21,375
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	44,490	$	132,673	$	107,331	$	120,704	$	68,219	$	213,242	$	68,201	$	906	$	755,766
Current period gross charge-offs	$	—	$	—	$	292	$	—	$	—	$	—	$	—	$	—	$	292

	At December 31, 2023
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
	Term Loans Amortized Cost Basis by Origination Year												Cost		to
	2023		2022		2021		2020		2019		Prior		Basis		Term		Total
	(In Thousands)
Commercial real estate (owner occupied)
Pass	$	17,801	$	6,750	$	15,067	$	8,415	$	10,322	$	26,538	$	351	$	—	$	85,244
Special Mention		—		—		464		—		2,252		—		923		—		3,639
Substandard		—		—		—		—		—		264		—		—		264
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	17,801	$	6,750	$	15,531	$	8,415	$	12,574	$	26,802	$	1,274	$	—	$	89,147
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial
Pass	$	22,662	$	34,816	$	12,767	$	5,831	$	4,912	$	19,587	$	56,391	$	70	$	157,036
Special Mention		—		—		127		—		—		—		—		—		127
Substandard		—		619		—		—		—		1,578		64		—		2,261
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	22,662	$	35,435	$	12,894	$	5,831	$	4,912	$	21,165	$	56,455	$	70	$	159,424
Current period gross charge-offs	$	—	$	75	$	—	$	—	$	—	$	405	$	—	$	—	$	480
Commercial real estate (non-owner occupied) - retail
Pass	$	35,545	$	23,368	$	33,110	$	23,146	$	9,226	$	35,102	$	983	$	—	$	160,480
Special Mention		—		314		—		—		—		1,167		—		—		1,481
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	35,545	$	23,682	$	33,110	$	23,146	$	9,226	$	36,269	$	983	$	—	$	161,961
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	2,028	$	—	$	—	$	2,028
Commercial real estate (non-owner occupied) - multi-family
Pass	$	22,620	$	16,767	$	16,622	$	12,041	$	9,638	$	28,632	$	1,321	$	—	$	107,641
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		966		1,278		123		—		—		2,367
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	22,620	$	16,767	$	16,622	$	13,007	$	10,916	$	28,755	$	1,321	$	—	$	110,008
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial real estate (non-owner occupied)
Pass	$	29,591	$	36,398	$	48,267	$	20,168	$	23,025	$	54,792	$	5,670	$	—	$	217,911
Special Mention		—		—		—		—		—		3,777		—		—		3,777
Substandard		—		1,043		—		—		6,243		11,113		—		199		18,598
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	29,591	$	37,441	$	48,267	$	20,168	$	29,268	$	69,682	$	5,670	$	199	$	240,286
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	804	$	—	$	—	$	—	$	804
Total by risk rating
Pass	$	128,219	$	118,099	$	125,833	$	69,601	$	57,123	$	164,651	$	64,716	$	70	$	728,312
Special Mention		—		314		591		—		2,252		4,944		923		—		9,024
Substandard		—		1,662		—		966		7,521		13,078		64		199		23,490
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	128,219	$	120,075	$	126,424	$	70,567	$	66,896	$	182,673	$	65,703	$	269	$	760,826
Current period gross charge-offs	$	—	$	75	$	—	$	—	$	804	$	2,433	$	—	$	—	$	3,312

Schedule of Residential and consumer portfolio

	At June 30, 2024
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
	Term Loans Amortized Cost Basis by Origination Year												Cost		to
	2024		2023		2022		2021		2020		Prior		Basis		Term		Total
	(In Thousands)
Residential mortgages
Performing	$	5,781	$	15,757	$	10,696	$	59,661	$	42,840	$	43,432	$	—	$	—	$	178,167
Non-performing		—		—		—		—		—		395		—		—		395
Total	$	5,781	$	15,757	$	10,696	$	59,661	$	42,840	$	43,827	$	—	$	—	$	178,562
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Performing	$	5,463	$	12,700	$	18,453	$	8,587	$	2,852	$	4,981	$	50,684	$	266	$	103,986
Non-performing		—		14		—		—		64		495		146		—		719
Total	$	5,463	$	12,714	$	18,453	$	8,587	$	2,916	$	5,476	$	50,830	$	266	$	104,705
Current period gross charge-offs	$	—	$	2	$	21	$	10	$	10	$	81	$	—	$	—	$	124
Total by payment performance
Performing	$	11,244	$	28,457	$	29,149	$	68,248	$	45,692	$	48,413	$	50,684	$	266	$	282,153
Non-performing		—		14		—		—		64		890		146		—		1,114
Total	$	11,244	$	28,471	$	29,149	$	68,248	$	45,756	$	49,303	$	50,830	$	266	$	283,267
Current period gross charge-offs	$	—	$	2	$	21	$	10	$	10	$	81	$	—	$	—	$	124

	At December 31, 2023
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
	Term Loans Amortized Cost Basis by Origination Year												Cost		to
	2023		2022		2021		2020		2019		Prior		Basis		Term		Total
	(In Thousands)
Residential mortgages
Performing	$	14,576	$	11,620	$	61,172	$	44,049	$	7,092	$	35,443	$	—	$	—	$	173,952
Non-performing		—		—		—		—		—		718		—		—		718
Total	$	14,576	$	11,620	$	61,172	$	44,049	$	7,092	$	36,161	$	—	$	—	$	174,670
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	54	$	—	$	—	$	54
Consumer
Performing	$	13,890	$	20,430	$	9,782	$	3,190	$	1,169	$	4,515	$	48,344	$	667	$	101,987
Non-performing		15		—		—		73		42		280		157		221		788
Total	$	13,905	$	20,430	$	9,782	$	3,263	$	1,211	$	4,795	$	48,501	$	888	$	102,775
Current period gross charge-offs	$	9	$	35	$	43	$	7	$	8	$	173	$	—	$	—	$	275
Total by payment performance
Performing	$	28,466	$	32,050	$	70,954	$	47,239	$	8,261	$	39,958	$	48,344	$	667	$	275,939
Non-performing		15		—		—		73		42		998		157		221		1,506
Total	$	28,481	$	32,050	$	70,954	$	47,312	$	8,303	$	40,956	$	48,501	$	888	$	277,445
Current period gross charge-offs	$	9	$	35	$	43	$	7	$	8	$	227	$	—	$	—	$	329

Schedule of Credit quality of the loan portfolio

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans.

	At June 30, 2024
			30 – 59		60 – 89
			DAYS		DAYS		90+ DAYS		TOTAL		NON-		TOTAL
	CURRENT		PAST DUE		PAST DUE		PAST DUE		PAST DUE		ACCRUAL		LOANS
	(IN THOUSANDS)
Commercial real estate (owner occupied)	$	83,143	$	—	$	—	$	—	$	—	$	181	$	83,324
Other commercial and industrial		151,831		96		—		95		191		1,596		153,618
Commercial real estate (non-owner occupied) - retail		168,205		—		—		943		943		—		169,148
Commercial real estate (non-owner occupied) - multi-family		113,205		945		—		—		945		—		114,150
Other commercial real estate (non-owner occupied)		224,849		3,593		—		—		3,593		7,084		235,526
Residential mortgages		177,802		365		—		—		365		395		178,562
Consumer		103,208		480		297		—		777		720		104,705
Total	$	1,022,243	$	5,479	$	297	$	1,038	$	6,814	$	9,976	$	1,039,033

	At December 31, 2023
			30 – 59		60 – 89
			DAYS		DAYS		90+ DAYS		TOTAL		NON-		TOTAL
	CURRENT		PAST DUE		PAST DUE		PAST DUE		PAST DUE		ACCRUAL		LOANS
	(IN THOUSANDS)
Commercial real estate (owner occupied)	$	88,960	$	—	$	—	$	—	$	—	$	187	$	89,147
Other commercial and industrial		156,971		526		22		211		759		1,694		159,424
Commercial real estate (non-owner occupied) - retail		161,961		—		—		—		—		—		161,961
Commercial real estate (non-owner occupied) - multi-family		110,008		—		—		—		—		—		110,008
Other commercial real estate (non-owner occupied)		231,506		—		—		—		—		8,780		240,286
Residential mortgages		173,497		437		18		—		455		718		174,670
Consumer		101,383		604		—		—		604		788		102,775
Total	$	1,024,286	$	1,567	$	40	$	211	$	1,818	$	12,167	$	1,038,271

Schedule of modifications made to borrowers experiencing financial difficulty

The following tables summarize the amortized cost basis of loans modified to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023 (in thousands).

	Three and six months ended June 30, 2024
	Combination - Term Extension and Payment Delay
	Amortized Cost Basis		% of Total Class of Loans
Other commercial and industrial	$	171		0.11	%
Total	$	171

As of June 30, 2024, the modified loan described in the table above was current as to payments.

	Three and six months ended June 30, 2023
	Term Extension
	Amortized Cost Basis		% of Total Class of Loans
Other commercial and industrial	$	428		0.28	%
Total	$	428
	Combination - Interest Rate Reduction and Term Extension
	Amortized Cost Basis		% of Total Class of Loans
Other commercial real estate (non-owner occupied)	$	7,047		3.21	%
Total	$	7,047

Three and six months ended June 30, 2024
Combination - Term Extension and Payment Delay
Loan Type	Financial Effect
Other commercial and industrial	During the first quarter of 2024, provided a maturity date extension of ninety days and modified seasonal principal and interest payments to interest only until maturity. During the second quarter of 2024, provided the same borrower an additional maturity date extension of ninety days with continued interest only payments.

Three and six months ended June 30, 2023
Term Extension
Loan Type	Financial Effect
Other commercial and industrial	During the first quarter of 2023, provided five-month expiration date extension on non-accrual line of credit under which availability was eliminated. During the second quarter of 2023, provided the same borrower with a one-year maturity date extension.
Combination - Interest Rate Reduction and Term Extension
Loan Type	Financial Effect
Other commercial real estate (non-owner occupied)	During the second quarter, provided seven months of interest only payments at a reduced rate with the remaining portion of interest, totaling approximately $303,000, being deferred until maturity. Addtionally, provided three month maturity date extension.