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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 9 Months Ended
Sep. 30, 2025
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):
September 30, 2025December 31, 2024
Commercial and industrial$309,221 $299,521 
Commercial mortgages:
Construction109,607 94,943 
Owner occupied commercial real estate169,914 142,279 
Non-owner occupied commercial real estate1,082,519 979,782 
Residential mortgages277,729 274,979 
Consumer loans:
Home equity lines and loans103,072 93,220 
Indirect consumer loans143,154 178,118 
Direct consumer loans7,140 8,577 
Total loans, net of deferred loan fees and costs2,202,356 2,071,419 
Allowance for credit losses(23,645)(21,388)
Loans, net$2,178,711 $2,050,031 
Schedules of Allowance for Credit Loss
The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine month periods ended September 30, 2025 and 2024 (in thousands):
Three Months Ended September 30, 2025
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, July 1, 2025$4,524 $12,714 $2,597 $2,830 $22,665 
Charge-offs— — — (288)(288)
Recoveries1 1 5 195 202 
Net recoveries (charge-offs)1 1 5 (93)(86)
Provision (1)
52 1,023 31 (40)1,066 
Ending balance, September 30, 2025
$4,577 $13,738 $2,633 $2,697 $23,645 
(1)Additional provision related to off-balance sheet exposure was a $2 thousand credit for the three months ended September 30, 2025.
Three Months Ended September 30, 2024
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, July 1, 2024$4,894 $10,530 $2,106 $3,501 $21,031 
Charge-offs(18)— (1)(286)(305)
Recoveries68 1 8 150 227 
Net recoveries (charge-offs)50 1 7 (136)(78)
Provision (1)
(48)231 105 200 488 
Ending balance, September 30, 2024
$4,896 $10,762 $2,218 $3,565 $21,441 
(1)Additional provision related to off-balance sheet exposure was $76 thousand for the three months ended September 30, 2024.

Nine Months Ended September 30, 2025
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2025$4,520 $11,214 $2,259 $3,395 $21,388 
Charge-offs(777)— — (1,030)(1,807)
Recoveries9 3 16 439 467 
Net recoveries (charge-offs)(768)3 16 (591)(1,340)
Provision (credit) (1)
825 2,521 358 (107)3,597 
Ending balance, September 30, 2025
$4,577 $13,738 $2,633 $2,697 $23,645 
(1)Additional provision related to off-balance sheet exposure was a $296 thousand credit for the nine months ended September 30, 2025.

Nine Months Ended September 30, 2024
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Beginning balance, January 1, 2024$5,055 $12,026 $2,194 $3,242 $22,517 
Charge-offs(18)— (21)(1,083)(1,122)
Recoveries118 3 57 378 556 
Net recoveries (charge-offs)100 3 36 (705)(566)
Provision (1)
(259)(1,267)(12)1,028 (510)
Ending balance, September 30, 2024
$4,896 $10,762 $2,218 $3,565 $21,441 
(1)Additional provision related to off-balance sheet exposure was a $87 thousand credit for the nine months ended September 30, 2024.
The following table presents the activity in the allowance for credit losses on unfunded commitments for the three and nine month periods ended September 30, 2025 and 2024 (in thousands):
For the Three Months EndedFor the Nine Months Ended
Allowance for credit losses on unfunded commitments September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Beginning balance $548 $756 $842 $919 
Provision for credit losses on unfunded commitments (2)76 (296)(87)
Ending balance $546 $832 $546 $832 

The following table presents the provision for credit losses on loans and unfunded commitments for the three and nine month periods ended September 30, 2025 and 2024 (in thousands):
For the Three Months EndedFor the Nine Months Ended
Provision for credit lossesSeptember 30, 2025September 30, 2024September 30, 2025September 30, 2024
Provision for credit losses on loans $1,066 $488 $3,597 $(510)
Provision for credit losses on unfunded commitments (2)76 (296)(87)
Total provision for credit losses$1,064 $564 $3,301 $(597)

The following tables present the balance in the allowance for credit losses by portfolio segment, as of September 30, 2025 and December 31, 2024 (in thousands):
 September 30, 2025
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Ending allowance balance attributable to loans:
Individually analyzed$616 $164 $— $— $780 
Collectively analyzed3,961 13,574 2,633 2,697 22,865 
   Total ending allowance balance$4,577 $13,738 $2,633 $2,697 $23,645 

 December 31, 2024
Allowance for credit lossesCommercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotals
Ending allowance balance attributable to loans:
Individually analyzed$1,446 $106 $— $— $1,552 
Collectively analyzed3,074 11,108 2,259 3,395 19,836 
Total ending allowance balance$4,520 $11,214 $2,259 $3,395 $21,388 

The following tables present the amortized cost basis of loans by portfolio segment, as of September 30, 2025 and December 31, 2024 (in thousands):
 September 30, 2025
Amortized cost basis of loans:Commercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Individually analyzed $668 $3,116 $— $342 $4,126 
Collectively analyzed308,553 1,358,924 277,729 253,024 2,198,230 
   Total ending loans balance$309,221 $1,362,040 $277,729 $253,366 $2,202,356 
 December 31, 2024
Amortized cost basis of loans:Commercial and IndustrialCommercial MortgagesResidential MortgagesConsumer LoansTotal
Individually analyzed$1,512 $4,959 $— $— $6,471 
Collectively analyzed298,009 1,212,045 274,979 279,915 2,064,948 
Total ending loans balance$299,521 $1,217,004 $274,979 $279,915 $2,071,419 
Schedule of Financing Receivable, Modified
The following tables summarize the amortized cost basis of loans modified during the three and nine month periods ended September 30, 2025 and 2024 (in thousands):
Three Months Ended September 30, 2025
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Non-owner occupied commercial real estate$— $— $— $3,431 $— $3,431 0.32 %
Total$— $— $— $3,431 $— $3,431 
(1) Represents amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.

There were no loan modifications to borrowers experiencing financial difficulty during three month period ended September 30, 2024.
Nine Months Ended September 30, 2025
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Non-owner occupied commercial real estate$— $— $— $3,431 $— $3,431 0.32 %
Total$— $— $— $3,431 $— $3,431 
(1) Represents amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.

Nine Months Ended September 30, 2024
Loans modified under ASU 2022-02:Principal ReductionInterest Rate ReductionTerm ExtensionPayment DelayCombinationTotal
(%) of Loan Class (1)
Residential mortgages$— $— $— $440 $— $440 0.16 %
Total$— $— $— $440 $— $440 
(1) Represents amortized cost basis of loans modified during the period as a percentage of the period-end loan balances by class.
The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during three and nine month periods ended September 30, 2025 and the nine month period ended September 30, 2024 (in thousands):

Three Months Ended September 30, 2025
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)
Non-owner occupied commercial real estate$——%06

Nine Months Ended September 30, 2025
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)
Non-owner occupied commercial real estate$——%06

Nine Months Ended September 30, 2024
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)
Residential mortgages$——%06
Schedule of Recorded Investment in Past Due and Non-Accrual Status by Class of Loans The following tables present the performance of such loans that were modified in the twelve month periods preceding September 30, 2025 and September 30, 2024 (in thousands):
Twelve Months Ended September 30, 2025
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past Due Total
Commercial and industrial$— $— $— $334 $334 
Commercial mortgages:
Owner occupied commercial real estate— — — 370 370 
Non-owner occupied commercial real estate— — — 3,431 3,431 
Total$— $— $— $4,135 $4,135 
Twelve Months Ended September 30, 2024
Past Due Status of Modifications under ASU 2022-02:30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueLoans Not Past Due Total
Commercial and industrial$— $— $— $121 $121 
Residential mortgages— — 440 — 440 
Total$— $— $440 $121 $561 
The following table presents the amortized cost basis of 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 September 30, 2025 and December 31, 2024 (in thousands):

Nonaccrual with No Allowance for Credit LossesNonaccrualLoans Past Due 90 Days or More and Still Accruing
September 30, 2025December 31, 2024September 30, 2025December 31, 2024September 30, 2025December 31, 2024
Commercial and industrial$154 $76 $763 $1,534 $21 $23 
Commercial mortgages:
Construction— — — — — — 
Owner occupied
commercial real estate		652 1,362 658 1,377 — — 
Non-owner occupied commercial real estate157 2,619 2,458 3,582 — — 
Residential mortgages1,905 1,372 1,905 1,372 — — 
Consumer loans:
Home equity lines and loans1,009 613 1,009 613 — — 
Indirect consumer loans862 474 862 474 — — 
Direct consumer loans107 2 107 2 — — 
Total$4,846 $6,518 $7,762 $8,954 $21 $23 
The following tables present the aging of the amortized cost basis of loans as of September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and industrial$884 $52 $64 $1,000 $308,221 $309,221 
Commercial mortgages: 
Construction— — — — 109,607 109,607 
Owner occupied
commercial real estate		— — 97 97 169,817 169,914 
Non-owner occupied
commercial real estate		376 25 2,301 2,702 1,079,817 1,082,519 
Residential mortgages1,532 786 997 3,315 274,414 277,729 
Consumer loans: 
Home equity lines and loans424 15 272 711 102,361 103,072 
Indirect consumer loans2,119 696 460 3,275 139,879 143,154 
Direct consumer loans16 9 4 29 7,111 7,140 
Total$5,351 $1,583 $4,195 $11,129 $2,191,227 $2,202,356 
December 31, 2024
 30 - 59 Days Past Due60 - 89 Days Past Due90 Days or More Past DueTotal Past DueLoans Not Past DueTotal
Commercial and industrial$140 $201 $702 $1,043 $298,478 $299,521 
Commercial mortgages: 
Construction— — — — 94,943 94,943 
Owner occupied
commercial real estate		82 — 96 178 142,101 142,279 
Non-owner occupied
commercial real estate		950 — 3,162 4,112 975,670 979,782 
Residential mortgages1,529 662 696 2,887 272,092 274,979 
Consumer loans: 
Home equity lines and loans231 — 364 595 92,625 93,220 
Indirect consumer loans2,101 719 235 3,055 175,063 178,118 
Direct consumer loans14 6 1 21 8,556 8,577 
Total$5,047 $1,588 $5,256 $11,891 $2,059,528 $2,071,419 
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 September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
Amortized Cost BasisRelated AllowanceAmortized Cost BasisRelated Allowance
Commercial and industrial (3)
$64 $12 $130 $65 
Commercial mortgages:
Owner occupied commercial real estate (1)
658 7 1,377 15 
Non-owner occupied commercial real estate (1) (2)
2,458 157 3,582 91 
Consumer loans:
Home equity lines and loans (2)
342 — — — 
Total$3,522 $176 $5,089 $171 
(1) Secured by commercial real estate.
(2) Secured by residential real estate.
(3) Secured by business assets.
Schedule of Risk Category of the Recorded Investment of Loans by Class of Loans
Based on the analyses performed as of September 30, 2025, the amortized cost basis of loans by class, risk category, and vintage, as well as gross charge-offs by class and vintage for the nine month period ended September 30, 2025, were as follows (in thousands):
Term Loans Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20252024202320222021Prior
Commercial & industrial
Pass$34,611 $36,244 $26,023 $27,535 $13,728 $18,060 $122,589 $2,527 $281,317 
Special mention609 275 707 2,426 532 7,644 8,189 3,641 24,023 
Substandard — 334 13 — 44 — 2,721 80 3,192 
Doubtful— 20 — — — 584 — 85 689 
Total35,220 36,873 26,743 29,961 14,304 26,288 133,499 6,333 309,221 
Gross charge-offs — — — — 772 — 5 — 777 
Construction
Pass17,456 28,578 37,355 14,024 8,882 1,378 1,934 — 109,607 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total17,456 28,578 37,355 14,024 8,882 1,378 1,934 — 109,607 
Gross charge-offs— — — — — — — — — 
Owner occupied commercial real estate
Pass 33,651 23,473 17,796 23,613 13,613 35,043 734 43 147,966 
Special mention1,211 — 4,716 2,269 6,584 3,633 2,000 — 20,413 
Substandard— — 96 489 — 944 — — 1,529 
Doubtful— — — — — 6 — — 6 
Total34,862 23,473 22,608 26,371 20,197 39,626 2,734 43 169,914 
Gross charge-offs— — — — — — — — — 
Non-owner occupied commercial real estate
Pass125,997 103,508 114,535 247,529 138,179 308,293 9,080 737 1,047,858 
Special mention2,045 — 3,555 15,764 7,483 2,901 — — 31,748 
Substandard— — 2,170 132 — 611 — — 2,913 
Doubtful— — — — — — — — — 
Total128,042 103,508 120,260 263,425 145,662 311,805 9,080 737 1,082,519 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated22,492 24,123 19,138 51,885 51,043 106,594 — — 275,275 
Special mention— — — — 426 — — — 426 
Substandard — — — 220 311 1,497 — — 2,028 
Total 22,492 24,123 19,138 52,105 51,780 108,091 — — 277,729 
Gross charge-offs— — — — — — — — — 
Home equity lines and loans
Not rated5,721 12,474 9,147 11,567 4,315 10,784 46,556 1,386 101,950 
Special mention— — — 113 — — — — 113 
Substandard — — 23 213 — 191 116 466 1,009 
Total5,721 12,474 9,170 11,893 4,315 10,975 46,672 1,852 103,072 
Gross charge-offs— — — — — — — — — 
Indirect consumer
Not rated18,712 29,171 38,024 45,731 7,628 2,925 — — 142,191 
Substandard — 304 311 287 37 24 — — 963 
Total18,712 29,475 38,335 46,018 7,665 2,949 — — 143,154 
Gross charge-offs1 157 424 231 107 43 — — 963 
Direct consumer
Not rated1,337 1,565 896 694 87 180 2,353 14 7,126 
Substandard3 — — — — — 10 1 14 
Total 1,340 1,565 896 694 87 180 2,363 15 7,140 
Gross charge-offs— 20 23 9 3 — 12 — 67 
Total loans $263,845 $260,069 $274,505 $444,491 $252,892 $501,292 $196,282 $8,980 $2,202,356 
Total gross charge-offs$1 $177 $447 $240 $882 $43 $17 $— $1,807 
Based on the analyses performed as of December 31, 2024, the amortized cost basis of loans by class, risk category, and vintage, as well as gross charge-offs by class and vintage for the year ended December 31, 2024, were as follows (in thousands):
Term Loans Amortized Cost by Origination YearRevolving Loans Amortized CostRevolving Loans Converted to TermTotal
20242023202220212020Prior
Commercial & industrial
Pass$44,130 $32,157 $34,862 $16,787 $8,326 $27,452 $108,819 $1,380 $273,913 
Special mention810 262 3,933 — 4,390 3,673 10,203 62 23,333 
Substandard 99 — 8 733 30 — 379 318 1,567 
Doubtful21 — — — — 687 — — 708 
Total45,060 32,419 38,803 17,520 12,746 31,812 119,401 1,760 299,521 
Gross charge-offs — 84 200 6 — — 12 — 302 
Construction
Pass19,344 46,954 17,568 9,058 — 1,536 483 — 94,943 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total19,344 46,954 17,568 9,058 — 1,536 483 — 94,943 
Gross charge-offs— — — — — — — — — 
Owner occupied commercial real estate
Pass 23,196 23,185 26,945 20,979 9,513 31,222 97 55 135,192 
Special mention— 370 — 109 — 2,206 2,000 — 4,685 
Substandard— 96 863 321 — 1,107 — — 2,387 
Doubtful— — — — — 15 — — 15 
Total23,196 23,651 27,808 21,409 9,513 34,550 2,097 55 142,279 
Gross charge-offs— — — — — — — — — 
Non-owner occupied commercial real estate
Pass97,155 109,354 267,280 141,864 97,828 233,084 6,696 777 954,038 
Special mention— — 5,935 7,793 — 7,833 — — 21,561 
Substandard— 2,148 146 — 1,014 875 — — 4,183 
Doubtful— — — — — — — — — 
Total97,155 111,502 273,361 149,657 98,842 241,792 6,696 777 979,782 
Gross charge-offs— — — — — — — — — 
Residential mortgages
Not rated21,574 20,257 55,321 55,152 64,471 56,708 — — 273,483 
Substandard — — 85 771 220 420 — — 1,496 
Total 21,574 20,257 55,406 55,923 64,691 57,128 — — 274,979 
Gross charge-offs— — — — — 21 — — 21 
Home equity lines and loans
Not rated13,833 10,657 14,094 4,879 2,503 10,259 35,015 1,252 92,492 
Special mention— — 115 — — — — — 115 
Substandard — 24 63 — — 195 116 215 613 
Total13,833 10,681 14,272 4,879 2,503 10,454 35,131 1,467 93,220 
Gross charge-offs— — 1 — — 11 1 — 13 
Indirect consumer
Not rated37,746 52,480 67,237 13,266 4,194 2,726 — — 177,649 
Substandard 75 157 107 79 11 40 — — 469 
Total37,821 52,637 67,344 13,345 4,205 2,766 — — 178,118 
Gross charge-offs47 517 525 161 99 116 — — 1,465 
Direct consumer
Not rated2,420 1,681 1,454 275 41 225 2,455 14 8,565 
Substandard— — — — — — 10 2 12 
Total 2,420 1,681 1,454 275 41 225 2,465 16 8,577 
Gross charge-offs5 21 20 14 — 4 8 — 72 
Total loans $260,403 $299,782 $496,016 $272,066 $192,541 $380,263 $166,273 $4,075 $2,071,419 
Total gross charge-offs$52 $622 $746 $181 $99 $152 $21 $— $1,873