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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 3 Months Ended
Mar. 31, 2024
Credit Loss [Abstract]  
Schedule of Composition of the Loan Portfolio by Type
The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands):
March 31, 2024December 31, 2023
Commercial and agricultural:
Commercial and industrial$279,414 $264,140 
Agricultural221 256 
Commercial mortgages:
Construction141,604 138,887 
Commercial mortgages, other1,004,198 984,038 
Residential mortgages277,246 277,992 
Consumer loans:
Home equity lines and loans87,608 87,056 
Indirect consumer loans204,081 210,423 
Direct consumer loans9,238 9,872 
Total loans, net of deferred loan fees and costs2,003,610 1,972,664 
Allowance for credit losses(20,471)(22,517)
Loans, net$1,983,139 $1,950,147 
Schedules of Allowance for Credit Loss
The following tables present the activity in the allowance for credit losses by portfolio segment for the three month periods ended March 31, 2024 and March 31, 2023 (in thousands):
Three Months Ended March 31, 2024
Allowance for credit lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2024$5,055 $12,026 $2,194 $3,242 $22,517 
Charge-offs— — (16)(351)(367)
Recoveries37 1 22 125 185 
Net recoveries (charge-offs)37 1 6 (226)(182)
Provision (credit) (1)
(576)(1,660)(138)510 (1,864)
Ending balance, March 31, 2024$4,516 $10,367 $2,062 $3,526 $20,471 
(1)Additional provision related to off-balance sheet exposure was a credit of $176 thousand for the three months ended March 31, 2024.
Three Months Ended March 31, 2023
Allowance for credit lossesCommercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2023$3,373 $11,576 $1,845 $2,865 $19,659 
Cumulative effect adjustment for the adoption of ASC 326909 (695)(16)176 374 
Beginning balance after cumulative effect adjustment4,282 10,881 1,829 3,041 20,033 
Charge-offs(190)— — (193)(383)
Recoveries6 — — 108 114 
Net recoveries (charge-offs)(184)— — (85)(269)
Provision (credit) (1)
(45)102 63 191 311 
Ending balance, March 31, 2023$4,053 $10,983 $1,892 $3,147 $20,075 
(1)Additional provision related to off-balance sheet exposure was a credit of $34 thousand for the three months ended March 31, 2023.
The following table presents the activity in the allowance for credit losses on unfunded commitments for the three month periods ended March 31, 2024 and 2023 (in thousands):
For the Three Months Ended
Allowance for credit losses on unfunded commitments March 31, 2024March 31, 2023
Beginning balance $919 $— 
Impact of ASC 326 adoption— 1,082 
Provision (credit) for credit losses on unfunded commitments (176)(34)
Ending balance $743 $1,048 

The following table presents the provision for credit losses on loans and unfunded commitments for the three month periods ended March 31, 2024 and March 31, 2023 (in thousands):
For the Three Months Ended
Provision (credit) for credit lossesMarch 31, 2024March 31, 2023
Provision (credit) for credit losses on loans $(1,864)$311 
Provision (credit) for credit losses on unfunded commitments (176)(34)
Total provision (credit) for credit losses$(2,040)$277 
The following tables present the balance in the allowance for credit losses by portfolio segment, as of March 31, 2024 and December 31, 2023 (in thousands):

 March 31, 2024
Allowance for credit lossesCommercial andCommercialResidentialConsumer
Ending allowance balance attributable to loans:AgriculturalMortgagesMortgagesLoansTotal
Individually analyzed$1,663 $24 $— $— $1,687 
Collectively analyzed2,853 10,343 2,062 3,526 18,784 
   Total ending allowance balance$4,516 $10,367 $2,062 $3,526 $20,471 

 December 31, 2023
Allowance for credit lossesCommercial and CommercialResidential Consumer
Ending allowance balance attributable to loans:AgriculturalMortgagesMortgagesLoansTotal
Individually analyzed$1,928 $27 $— $— $1,955 
Collectively analyzed3,127 11,999 2,194 3,242 20,562 
Total ending allowance balance$5,055 $12,026 $2,194 $3,242 $22,517 


The following tables present the amortized cost basis of loans by portfolio segment, as of March 31, 2024 and December 31, 2023 (in thousands):

 March 31, 2024
Amortized cost basis of loans:Commercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Individually analyzed $1,746 $3,965 $— $— $5,711 
Collectively analyzed277,889 1,141,837 277,246 300,927 1,997,899 
   Total ending loans balance$279,635 $1,145,802 $277,246 $300,927 $2,003,610 


 December 31, 2023
Amortized cost basis of loans:Commercial and AgriculturalCommercial MortgagesResidential MortgagesConsumer LoansTotal
Individually analyzed$2,067 $5,968 $— $— $8,035 
Collectively analyzed262,329 1,116,957 277,992 307,351 1,964,629 
Total ending loans balance$264,396 $1,122,925 $277,992 $307,351 $1,972,664 
Schedule of Financing Receivable, Modified
The following tables summarize the amortized cost basis of loans modified during the three month period ended March 31, 2023 (in thousands):
Three Months Ended March 31, 2023
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Commercial mortgages:
Commercial mortgages, other$— $— $277 $— $— $277 0.03 %
(1) Represents the amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three month period ended March 31, 2023 (in thousands):
Three Months Ended March 31, 2023
Effect of loan modifications under ASU 2022-02:Principal Reduction
(in thousands)		Weighted-average interest rate reduction (%)Weighted-average term extension
(in months)		Weighted-average payment delay
(in months)
Commercial mortgages:
Commercial mortgages, other$——%60 months0
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans The following tables present the performance of such loans that have been modified in the twelve month period preceding March 31, 2024 and the three month period preceding March 31, 2023 (in thousands):
Twelve Months Ended March 31, 2024
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past Due Total
Commercial and agricultural:
Commercial and industrial$— $— $675 $129 $804 
Consumer loans:
Home equity lines and loans— — — 116 116 
Total$— $— $675 $245 $920 
Three Months Ended March 31, 2023 (1)
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past Due Total
Commercial mortgages, other$— $— $— $277 $277 
(1) Represents loans which were modified during the three month period subsequent to the adoption of ASU 2022-02 on January 1, 2023.
The following table presents the amortized cost basis in nonaccrual loans without an associated allocation in the allowance for credit losses, total nonaccrual loans, and loans past due greater than 90 days and still accruing, by class of loan as of March 31, 2024 and December 31, 2023 (in thousands):


Nonaccrual with No Allowance for Credit LossesNonaccrualLoans Past Due 90 Days or More and Still Accruing
March 31, 2024December 31, 2023March 31, 2024December 31, 2023March 31, 2024December 31, 2023
Commercial and agricultural:
Commercial and industrial$23 $76 $1,615 $1,904 $8 $10 
Agricultural— — 2 26 — — 
Commercial mortgages:
Construction2,207 2,209 2,207 2,209 — — 
Commercial mortgages, other1,734 3,732 1,758 3,760 — — 
Residential mortgages1,118 1,315 1,118 1,315 — — 
Consumer loans:
Home equity lines and loans496 508 496 508 — — 
Indirect consumer loans631 687 631 687 — — 
Direct consumer loans8 2 8 2 — — 
Total$6,217 $8,529 $7,835 $10,411 $8 $10 



The following tables present the aging of the amortized cost basis of loans as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and agricultural:
Commercial and industrial$181 $238 $683 $1,102 $278,312 $279,414 
Agricultural— — — — 221 221 
Commercial mortgages: 
Construction— — 2,207 2,207 139,397 141,604 
Commercial mortgages, other1,012 2,238 175 3,425 1,000,773 1,004,198 
Residential mortgages1,529 594 589 2,712 274,534 277,246 
Consumer loans: 
Home equity lines and loans612 100 282 994 86,614 87,608 
Indirect consumer loans1,063 379 379 1,821 202,260 204,081 
Direct consumer loans18 20 6 44 9,194 9,238 
Total$4,415 $3,569 $4,321 $12,305 $1,991,305 $2,003,610 
December 31, 2023
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and agricultural:
Commercial and industrial$1,196 $31 $10 $1,237 $262,903 $264,140 
Agricultural— — — — 256 256 
Commercial mortgages: 
Construction2,164 — 2,207 4,371 134,516 138,887 
Commercial mortgages, other1,022 103 261 1,386 982,652 984,038 
Residential mortgages2,244 201 585 3,030 274,962 277,992 
Consumer loans: 
Home equity lines and loans461 87 366 914 86,142 87,056 
Indirect consumer loans2,473 501 426 3,400 207,023 210,423 
Direct consumer loans2 20 — 22 9,850 9,872 
Total$9,562 $943 $3,855 $14,360 $1,958,304 $1,972,664 
Schedule of Analysis of Collateral Dependent Loans
The following table presents the amortized cost basis and related allowance for credit loss of individually analyzed loans considered to be collateral dependent as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Amortized Cost BasisRelated AllowanceAmortized Cost BasisRelated Allowance
Commercial and agricultural:
Commercial and industrial (3)
$282 $200 $353 $214 
Agricultural (3)
2 1 26 26 
Commercial mortgages:
Construction (1)
2,207 — 2,209 — 
Commercial mortgages, other (1) (2) (3)
1,757 24 3,759 27 
Total$4,248 $225 $6,347 $267 
(1) Secured by commercial real estate
(2) Secured by residential real estate
(3) Secured by business assets
Schedule of Impaired Financing Receivables he following tables present the average amortized cost basis and interest income recognized on loans individually analyzed, by class of loans, for the three month periods ended March 31, 2024 and 2023 (in thousands):
 Three Months Ended 
 March 31, 2024		Three Months Ended 
 March 31, 2023
With no related allowance recorded:Average Amortized Cost Basis
Interest Income Recognized (1)
Average Amortized Cost Basis
Interest Income Recognized (1)
Commercial and agricultural:
   Commercial and industrial$49 $1 $729 $— 
Agricultural— — — — 
Commercial mortgages:
Construction2,208 — — — 
Commercial mortgages, other2,733 — 4,053 7 
Residential mortgages— — 715 9 
Consumer loans:
Home equity lines & loans— — 254 — 
With an allowance recorded:
Commercial and agricultural:
Commercial and industrial1,844 3 1,049 2 
Agricultural14 — — — 
Commercial mortgages:
Commercial mortgages, other25 — 36 — 
Total$6,873 $4 $6,836 $18 
(1) Cash basis interest income approximates interest income recognized.
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans
Based on the analyses performed as of March 31, 2024, the risk category of the amortized cost basis of loans by class and vintage, as well as gross charge-offs by class and vintage for the period, were as follows (in thousands):

Term Loans Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20242023202220212020Prior
Commercial & industrial
Pass$10,885 $39,011 $34,108 $21,370 $12,349 $39,698 $92,497 $1,643 $251,561 
Special mention— — 9,159 — 4,060 4,586 7,223 453 25,481 
Substandard — 89 221 788 83 205 — 176 1,562 
Doubtful24 — — — — 764 22 — 810 
Total10,909 39,100 43,488 22,158 16,492 45,253 99,742 2,272 279,414 
Gross charge-offs — — — — — — — — — 
Agricultural
Pass— — 14 143 — — 62 — 219 
Special mention— — — — — — — — — 
Substandard— 2 — — — — — — 2 
Doubtful— — — — — — — — — 
Total— 2 14 143 — — 62 — 221 
Gross charge-offs— — — — — — — — — 
Construction
Pass1,076 48,500 77,995 9,686 — 1,658 482 — 139,397 
Special mention— — — — — — — — — 
Substandard— — — — — 2,207 — — 2,207 
Doubtful— — — — — — — — — 
Total1,076 48,500 77,995 9,686 — 3,865 482 — 141,604 
Gross charge-offs— — — — — — — — — 
Commercial mortgages
Pass 13,784 117,235 258,049 171,090 111,407 296,080 5,127 742 973,514 
Special mention— — 2,522 8,092 2,590 8,082 2,001 — 23,287 
Substandard— 2,412 1,081 339 1,012 2,432 97 — 7,373 
Doubtful— — — — — 24 — — 24 
Total13,784 119,647 261,652 179,521 115,009 306,618 7,225 742 1,004,198 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated4,014 20,000 57,204 59,311 70,050 65,549 — — 276,128 
Substandard — — 75 342 247 454 — — 1,118 
Total 4,014 20,000 57,279 59,653 70,297 66,003 — — 277,246 
Gross charge-offs— — — — — 16 — — 16 
Home equity lines and loans
Not rated3,298 12,904 15,846 5,577 3,009 12,494 32,773 1,095 86,996 
Special mention— — 116 — — — — — 116 
Substandard — — 76 — — 291 86 43 496 
Total3,298 12,904 16,038 5,577 3,009 12,785 32,859 1,138 87,608 
Gross charge-offs— — — — — 11 — — 11 
Indirect consumer
Not rated11,861 67,401 90,413 20,411 7,652 5,712 — — 203,450 
Substandard — 139 208 141 49 94 — — 631 
Total11,861 67,540 90,621 20,552 7,701 5,806 — — 204,081 
Gross charge-offs— 104 127 29 24 54 — — 338 
Direct consumer
Not rated700 2,622 2,391 607 174 332 2,401 3 9,230 
Substandard— — — 5 2 — 1 — 8 
Total 700 2,622 2,391 612 176 332 2,402 3 9,238 
Gross charge-offs— — — — — — 2 — 2 
Total loans $45,642 $310,315 $549,478 $297,902 $212,684 $440,662 $142,772 $4,155 $2,003,610 
Total gross charge-offs$— $104 $127 $29 $24 $81 $2 $— $367 
Based on the analyses performed as of December 31, 2023, the risk category of the amortized cost basis of loans by class and vintage, as well as gross charge-offs by class and vintage for the period, were as follows (in thousands):
Term Loans Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20232022202120202019Prior
Commercial & industrial
Pass$41,925 $40,564 $21,742 $13,541 $31,233 $10,523 $77,176 $1,662 $238,366 
Special mention185 4,608 — 4,020 — 4,690 9,137 482 23,122 
Substandard — 24 991 109 23 456 — 161 1,764 
Doubtful— — — — — 790 75 23 888 
Total42,110 45,196 22,733 17,670 31,256 16,459 86,388 2,328 264,140 
Gross charge-offs — — — — 9 272 — — 281 
Agricultural
Pass— 15 150 — — — 65 — 230 
Special mention— — — — — — — — — 
Substandard— — — — — — — 26 26 
Doubtful— — — — — — — — — 
Total— 15 150 — — — 65 26 256 
Gross charge-offs— — — — — — — — — 
Construction
Pass46,951 68,483 19,066 — 28 1,669 481 — 136,678 
Special mention— — — — — — — — — 
Substandard— — — — 2,207 2 — — 2,209 
Doubtful— — — — — — — — — 
Total46,951 68,483 19,066 — 2,235 1,671 481 — 138,887 
Gross charge-offs— — — — — — — — — 
Commercial mortgages
Pass 110,864 260,763 161,858 113,198 57,782 244,211 5,197 767 954,640 
Special mention— 2,533 8,189 2,609 — 8,642 — — 21,973 
Substandard272 1,107 345 1,022 — 4,555 97 — 7,398 
Doubtful— — — — — 27 — — 27 
Total111,136 264,403 170,392 116,829 57,782 257,435 5,294 767 984,038 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated18,653 58,098 60,024 71,369 15,948 52,585 — — 276,677 
Substandard — 75 346 — 169 725 — — 1,315 
Total 18,653 58,173 60,370 71,369 16,117 53,310 — — 277,992 
Gross charge-offs— 32 — — — — — — 32 
Home equity lines and loans
Not rated13,552 16,384 5,821 3,134 2,867 10,400 33,275 1,115 86,548 
Substandard — 77 — — — 293 25 113 508 
Total13,552 16,461 5,821 3,134 2,867 10,693 33,300 1,228 87,056 
Gross charge-offs— — — — — — 6 — 6 
Indirect consumer
Not rated72,264 98,008 23,015 9,192 3,870 3,387 — — 209,736 
Substandard 119 246 135 48 36 103 — — 687 
Total72,383 98,254 23,150 9,240 3,906 3,490 — — 210,423 
Gross charge-offs184 375 215 121 21 55 — — 971 
Direct consumer
Not rated3,005 2,745 785 256 53 324 2,697 5 9,870 
Substandard— — — 2 — — — — 2 
Total 3,005 2,745 785 258 53 324 2,697 5 9,872 
Gross charge-offs4 15 8 6 — 54 6 — 93 
Total loans $307,790 $553,730 $302,467 $218,500 $114,216 $343,382 $128,225 $4,354 $1,972,664 
Total gross charge-offs$188 $422 $223 $127 $30 $381 $12 $— $1,383