The Company periodically reviews and updates the segmentation of its loan portfolio. Updates performed in conjunction with adoption of ASC 326 in 2023 consisted of reporting what had been a single class, commercial real estate loans, as three classes - commercial real estate owner occupied, commercial real estate non-owner occupied, and commercial multi-family. In addition home equity installment loans which had previously been included in the residential term class were included in the home equity revolving and term class. In the first quarter of 2024, a new segment was established for Agriculture loans; certain prior period information of these loans continues to be included the C&I and CRE non-owner occupied segments.


	June 30, 2024				December 31, 2023				June 30, 2023
Commercial
Real estate owner occupied	$	341,043,000	15.1	%	$	314,819,000	14.8	%	$	301,320,000	14.6	%
Real estate non-owner occupied	406,480,000		18.1	%	390,167,000		18.3	%	392,878,000		19.1	%
Construction	98,726,000		4.4	%	88,673,000		4.2	%	64,094,000		3.1	%
C&I	330,542,000		14.7	%	315,026,000		14.8	%	307,018,000		14.9	%
Multifamily	105,704,000		4.7	%	93,476,000		4.4	%	93,124,000		4.5	%
Agriculture	48,748,000		2.2	%	45,230,000		2.1	%	48,346,000		2.3	%
Municipal	62,105,000		2.8	%	51,423,000		2.4	%	58,252,000		2.8	%
Residential
Term	686,006,000		30.5	%	674,855,000		31.7	%	645,127,000		31.4	%
Construction	35,574,000		1.6	%	32,358,000		1.5	%	30,812,000		1.5	%
Home Equity
Revolving and term	112,228,000		5.0	%	104,026,000		4.9	%	99,666,000		4.8	%
Consumer	20,514,000		0.9	%	19,401,000		0.9	%	20,316,000		1.0	%
Total	$	2,247,670,000	100.0	%	$	2,129,454,000	100.0	%	$	2,060,953,000	100.0	%

Loan balances include net deferred loan costs of $12,130,000 as of June 30, 2024, $11,479,000 as of December 31, 2023, and $10,824,000 as of June 30, 2023. Net deferred loan costs have increased from a year ago and year-to-date based upon loan origination unit volume over the periods, prepayments, and normal repayment activity. Loan balances in the Residential Term segment also include a valuation adjustment for fair value swaps hedged by certain loans in the portfolio. This adjustment subtracted $68,000 from the loan balances as of June 30, 2024 and added $2,149,000 to the loan balances as of December 31, 2023; there was no such adjustment as of June 30, 2023.

Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $624,058,000 at June 30, 2024, were used to collateralize borrowings from the FHLBB. This compares to qualifying loans which totaled $561,574,000 at December 31, 2023, and $541,345,000 at June 30, 2023. In addition, commercial, residential construction and home equity loans totaling $353,650,000 at June 30, 2024, $320,083,000 at December 31, 2023, and $331,836,000 at June 30, 2023, were used to collateralize a standby line of credit at the FRBB.


	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	503,000	$	64,000	$	383,000	$	950,000	$	340,093,000	$	341,043,000	$	—
Real estate non-owner occupied	—		—		—		—		406,480,000		406,480,000		—
Construction	—		—		—		—		98,726,000		98,726,000		—
C&I	585,000		—		37,000		622,000		329,920,000		330,542,000		19,000
Multifamily	—		—		—		—		105,704,000		105,704,000		—
Agriculture	—		—		—		—		48,748,000		48,748,000		—
Municipal	—		—		—		—		62,105,000		62,105,000		—
Residential
Term	110,000		232,000		446,000		788,000		685,218,000		686,006,000		48,000
Construction	—		—		—		—		35,574,000		35,574,000		—
Home equity
Revolving and term	553,000		127,000		67,000		747,000		111,481,000		112,228,000		—
Consumer	147,000		44,000		20,000		211,000		20,303,000		20,514,000		20,000
Total	$	1,898,000	$	467,000	$	953,000	$	3,318,000	$	2,244,352,000	$	2,247,670,000	$	87,000


	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	—	$	—	$	—	$	—	$	314,819,000	$	314,819,000	$	—
Real estate non-owner occupied	—		—		—		—		393,636,000		393,636,000		—
Construction	—		9,000		8,000		17,000		88,656,000		88,673,000		—
C&I	714,000		35,000		120,000		869,000		355,918,000		356,787,000		10,000
Multifamily	—		—		—		—		93,476,000		93,476,000		—
Municipal	31,000		—		—		31,000		51,392,000		51,423,000		—
Residential
Term	254,000		818,000		728,000		1,800,000		673,055,000		674,855,000		360,000
Construction	—		—		—		—		32,358,000		32,358,000		—
Home equity
Revolving and term	495,000		95,000		26,000		616,000		103,410,000		104,026,000		—
Consumer	475,000		22,000		58,000		555,000		18,846,000		19,401,000		59,000
Total	$	1,969,000	$	979,000	$	940,000	$	3,888,000	$	2,125,566,000	$	2,129,454,000	$	429,000


	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate owner occupied	$	37,000	$	—	$	—	$	37,000	$	301,283,000	$	301,320,000	$	—
Real estate non-owner occupied	—		—		—		—		396,388,000		396,388,000		—
Construction	—		—		8,000		8,000		64,086,000		64,094,000		—
C&I	346,000		43,000		147,000		536,000		351,318,000		351,854,000		—
Multifamily	—		—		—		—		93,124,000		93,124,000		—
Municipal	—		—		—		—		58,252,000		58,252,000		—
Residential
Term	58,000		1,205,000		376,000		1,639,000		643,488,000		645,127,000		298,000
Construction	—		—		—		—		30,812,000		30,812,000		—
Home equity
Revolving and term	177,000		—		193,000		370,000		99,296,000		99,666,000		7,000
Consumer	202,000		36,000		14,000		252,000		20,064,000		20,316,000		13,000
Total	$	820,000	$	1,284,000	$	738,000	$	2,842,000	$	2,058,111,000	$	2,060,953,000	$	318,000

Non-Accrual Loans: For all classes, loans are placed on non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when principal and interest is 90 days or more past due unless the loan is both well secured and in the process of collection (in which case the loan may continue to accrue interest in spite of its past due status). A loan is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is "in the process of collection" if collection of the loan is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or, (2) in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future.

Cash payments received on non-accrual loans are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected, or when it otherwise becomes well secured and in the process of collection.


	June 30, 2024						December 31, 2023						June 30, 2023
Dollars in thousands	Nonaccrual with Allowance for Credit Loss		Nonaccrual with no Allowance for Credit Loss		Total Nonaccrual		Nonaccrual with Allowance for Credit Loss		Nonaccrual with no Allowance for Credit Loss		Total Nonaccrual		Nonaccrual with Allowance for Credit Loss		Nonaccrual with no Allowance for Credit Loss		Total Nonaccrual
Commercial
Real estate owner occupied	$	—	$	383,000	$	383,000	$	—	$	—	$	—	$	—	$	—	$	—
Real estate non-owner occupied	—		—		—		—		—		—		—		—		—
Construction	—		19,000		19,000		—		29,000		29,000		—		30,000		30,000
C&I	—		111,000		111,000		354,000		184,000		538,000		372,000		283,000		655,000
Multifamily	—		—		—		—		—		—		—		—		—
Agriculture	—		32,000		32,000		—		—		—		—		—		—
Municipal	—		—		—		—		—		—		—		—		—
Residential													—		—		—
Term	—		1,731,000		1,731,000		304,000		1,011,000		1,315,000		—		533,000		533,000
Construction	—		—		—		—		—		—		—		—		—
Home equity													—		—		—
Revolving and term	—		288,000		288,000		—		296,000		296,000		—		458,000		458,000
Consumer	—		—		—		—		—		—		—		—		—
Total	$	—	$	2,564,000	$	2,564,000	$	658,000	$	1,520,000	$	2,178,000	$	372,000	$	1,304,000	$	1,676,000

Individually Analyzed Loans: IAL include loans with balances of $250,000 or more that have either been placed into non-accrual, were loans reported as TDR prior to adoption of ASU 2022-02, or are loans identified by management as having characteristics that merit individual analysis. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. If the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an IAL loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off.


	Collateral Type
	Commercial Real Estate		Residential Real Estate		Total
Commercial
Real estate owner occupied	$	283,000	$	—	$	283,000
Real estate non-owner occupied	—		—		—
Construction	—		—		—
C&I	—		—		—
Multifamily	—		—		—
Agriculture	—		—		—
Municipal	—		—		—
Residential
Term	—		569,000		569,000
Construction	—		—		—
Home Equity
Revolving and term	—		—		—
Consumer	—		—		—
Total	$	283,000	$	569,000	$	852,000

The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2023 by collateral type:


	Collateral Type
	Residential Real Estate		Total
Commercial
Real estate owner occupied	$	—	$	—
Real estate non-owner occupied	—		—
Construction	—		—
C&I	—		—
Multifamily	—		—

Municipal	—		—
Residential
Term	685,000		685,000
Construction	—		—
Home Equity
Revolving and term	—		—
Consumer	—		—
Total	$	685,000	$	685,000


	Collateral Type
	Commercial Real Estate		Residential Real Estate		Total
Commercial
Real estate owner occupied	$	—	$	—	$	—
Real estate non-owner occupied	725,000		—		725,000
Construction	—		—		—
C&I	—		—		—
Multifamily	—		—		—

Municipal	—		—		—
Residential
Term	—		385,000		385,000
Construction	—		—		—
Home Equity
Revolving and term	—		—		—
Consumer	—		—		—
Total	$	725,000	$	385,000	$	1,110,000

Loan Modifications to Borrowers Experiencing Financial Difficulty: Loan modifications to borrowers experiencing financial difficulty may include interest rate reduction, term extension, payment deferral, principle forgiveness or a combination thereof. It is the intent to minimize future losses while providing borrowers with financial relief.


Amortized Cost Basis
	Payment Deferral		Term Extension		Interest Rate Reduction		Principal Forgiveness		Combination Payment Deferral and Term Extension		% of Total Class of Financing Receivable
Commercial
Real estate owner occupied	$	635,000	$	—	$	—	$	—	$	—	0.19	%
Real estate non-owner occupied	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
C&I	177,000		—		—		—		170,000		0.05	%
Multifamily	—		—		—		—		—		—	%
Agriculture	—		—		—		—		—		—	%
Municipal	—		—		—		—		—		—	%
Residential
Term	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
Home Equity
Revolving and term	—		—		—		—		—		—	%
Consumer	—		—		—		—		—		—	%
Total	$	812,000	$	—	$	—	$	—	$	170,000	0.04	%


Amortized Cost Basis
	Payment Deferral		Term Extension		Interest Rate Reduction		Principal Forgiveness		Combination Payment Deferral and Term Extension		% of Total Class of Financing Receivable
Commercial
Real estate owner occupied	$	—	$	—	$	—	$	—	$	—	—	%
Real estate non-owner occupied	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
C&I	—		4,000		—		—		—		0.001	%
Multifamily	—		—		—		—		—		—	%
Agriculture	—		—		—		—		—		—	%
Municipal	—		—		—		—		—		—	%
Residential
Term	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
Home Equity
Revolving and term	—		—		—		—		—		—	%
Consumer	—		—		—		—		—		—	%
Total	$	—	$	4,000	$	—	$	—	$	—	0.0002	%

The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified during the previous 12 months as of June 30, 2024:


	Payment Status (Amortized Cost Basis)
	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due
Commercial
Real estate owner occupied	$	635,000	$	503,000	$	—	$	283,000
Construction	69,000		—		—		—
C&I	402,000		41,000		—		—
Multifamily	1,932,000		—		—		—

Residential
Term	1,023,000		—		—		—
Home Equity
Revolving and term	70,000		—		—		—
Consumer	19,000		—		—		13,000
Total	$	4,150,000	$	544,000	$	—	$	296,000

As of June 30, 2024, there were two mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $127,000. This compares to five mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $400,000 as of December 31, 2023. There were no mortgage loans collateralized by residential real estate in the process of foreclosure as of June 30, 2023.