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 in the C&I and CRE non-owner occupied segments.


	September 30, 2024				December 31, 2023				September 30, 2023
Commercial
Real estate owner occupied	$	348,287,000	15.1	%	$	314,819,000	14.8	%	$	299,943,000	14.4	%
Real estate non-owner occupied	408,361,000		17.7	%	390,167,000		18.3	%	393,531,000		18.9	%
Construction	87,992,000		3.8	%	88,673,000		4.2	%	72,424,000		3.5	%
C&I	368,415,000		16.0	%	315,026,000		14.8	%	306,583,000		14.7	%
Multifamily	110,472,000		4.8	%	93,476,000		4.4	%	91,041,000		4.4	%
Agriculture	51,274,000		2.2	%	45,230,000		2.1	%	47,506,000		2.3	%
Municipal	62,944,000		2.7	%	51,423,000		2.4	%	58,447,000		2.8	%
Residential
Term	698,068,000		30.2	%	674,855,000		31.7	%	660,049,000		31.8	%
Construction	34,628,000		1.5	%	32,358,000		1.5	%	28,986,000		1.4	%
Home Equity
Revolving and term	117,028,000		5.1	%	104,026,000		4.9	%	101,980,000		4.9	%
Consumer	19,784,000		0.9	%	19,401,000		0.9	%	19,370,000		0.9	%
Total	$	2,307,253,000	100.0	%	$	2,129,454,000	100.0	%	$	2,079,860,000	100.0	%

Loan balances include net deferred loan costs of $12,266,000 as of September 30, 2024, $11,479,000 as of December 31, 2023, and $11,213,000 as of September 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 added $2,462,000 to the loan balances as of September 30, 2024, added $2,149,000 to the loan balances as of December 31, 2023 and subtracted $705,000 from the loan balances as of September 30, 2023.

Pursuant to collateral agreements, qualifying first mortgage loans and commercial real estate loans, which totaled $622,370,000 at September 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 $525,904,000 at September 30, 2023. In addition, commercial, residential construction and home equity loans totaling $364,068,000 at September 30, 2024, $320,083,000 at December 31, 2023, and $332,657,000 at September 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	$	—	$	64,000	$	98,000	$	162,000	$	348,125,000	$	348,287,000	$	—
Real estate non-owner occupied	—		—		—		—		408,361,000		408,361,000		—
Construction	—		—		—		—		87,992,000		87,992,000		—
C&I	318,000		708,000		44,000		1,070,000		367,345,000		368,415,000		—
Multifamily	—		—		—		—		110,472,000		110,472,000		—
Agriculture	210,000		—		—		210,000		51,064,000		51,274,000		—
Municipal	—		—		—		—		62,944,000		62,944,000		—
Residential
Term	70,000		166,000		500,000		736,000		697,332,000		698,068,000		144,000
Construction	—		—		—		—		34,628,000		34,628,000		—
Home equity
Revolving and term	508,000		—		4,000		512,000		116,516,000		117,028,000		—
Consumer	343,000		13,000		261,000		617,000		19,167,000		19,784,000		261,000
Total	$	1,449,000	$	951,000	$	907,000	$	3,307,000	$	2,303,946,000	$	2,307,253,000	$	405,000


	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	$	—	$	—	$	—	$	—	$	299,943,000	$	299,943,000	$	—
Real estate non-owner occupied	—		—		—		—		397,024,000		397,024,000		—
Construction	—		7,000		8,000		15,000		72,409,000		72,424,000		—
C&I	349,000		100,000		221,000		670,000		349,926,000		350,596,000		—
Multifamily	—		—		—		—		91,041,000		91,041,000		—
Municipal	—		—		—		—		58,447,000		58,447,000		—
Residential
Term	39,000		106,000		578,000		723,000		659,326,000		660,049,000		—
Construction	—		62,000		—		62,000		28,924,000		28,986,000		—
Home equity
Revolving and term	79,000		—		179,000		258,000		101,722,000		101,980,000		—
Consumer	210,000		39,000		11,000		260,000		19,110,000		19,370,000		11,000
Total	$	677,000	$	314,000	$	997,000	$	1,988,000	$	2,077,872,000	$	2,079,860,000	$	11,000

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.


	September 30, 2024						December 31, 2023						September 30, 2023
	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	$	—	$	367,000	$	367,000	$	—	$	—	$	—	$	—	$	—	$	—
Real estate non-owner occupied	—		—		—		—		—		—		—		—		—
Construction	—		19,000		19,000		—		29,000		29,000		—		29,000		29,000
C&I	—		129,000		129,000		354,000		184,000		538,000		363,000		351,000		714,000
Multifamily	—		—		—		—		—		—		—		—		—
Agriculture	—		31,000		31,000		—		—		—		—		—		—
Municipal	—		—		—		—		—		—		—		—		—
Residential
Term	—		1,686,000		1,686,000		304,000		1,011,000		1,315,000		304,000		1,016,000		1,320,000
Construction	—		—		—		—		—		—		—		—		—
Home equity
Revolving and term	—		265,000		265,000		—		296,000		296,000		—		490,000		490,000
Consumer	—		—		—		—		—		—		—		—		—
Total	$	—	$	2,497,000	$	2,497,000	$	658,000	$	1,520,000	$	2,178,000	$	667,000	$	1,886,000	$	2,553,000

Individually Analyzed Loans: IAL include loans with balances of $250,000 or more that have either been placed into non-accrual or are loans identified by management as having characteristics that may impact ultimate collectibility and therefore 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.


	September 30, 2024						December 31, 2023						September 30, 2023
	Collateral Type						Collateral Type						Collateral Type
Dollars in thousands	Commercial Real Estate		Residential Real Estate		Total		Commercial Real Estate		Residential Real Estate		Total		Commercial Real Estate		Residential Real Estate		Total
Commercial
Real estate owner occupied	$	270,000	$	—	$	270,000	$	—	$	—	$	—	$	—	$	—	$	—
Real estate non-owner occupied	—		—		—		—		—		—		—		—		—
Construction	—		—		—		—		—		—		—		—		—
C&I	—		—		—		—		—		—		—		—		—
Multifamily	—		—		—		—		—		—		—		—		—
Agriculture	—		—		—		—		—		—		—		—		—
Municipal	—		—		—		—		—		—		—		—		—
Residential
Term	—		566,000		566,000		—		685,000		685,000		—		687,000		687,000
Construction	—		—		—		—		—		—		—		—		—
Home equity
Revolving and term	—		—		—		—		—		—		—		—		—
Consumer	—		—		—		—		—		—		—		—		—
Total	$	270,000	$	566,000	$	836,000	$	—	$	685,000	$	685,000	$	—	$	687,000	$	687,000

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	$	—	$	—	$	—	$	—	$	—	—	%
Real estate non-owner occupied	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
C&I	—		—		—		—		55,000		0.01	%
Multifamily	—		—		—		—		—		—	%
Agriculture	—		—		—		—		—		—	%
Municipal	—		—		—		—		—		—	%
Residential
Term	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
Home Equity
Revolving and term	—		—		—		—		—		—	%
Consumer	—		—		—		—		—		—	%
Total	$	—	$	—	$	—	$	—	$	55,000	0.002	%


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	$	—	$	—	$	—	$	—	0.18	%
Real estate non-owner occupied	—		—		—		—		—		—	%
Construction	69,000		—		—		—		—		0.08	%
C&I	175,000		—		—		—		225,000		0.11	%
Multifamily	1,932,000		—		—		—		—		1.75	%
Agriculture	—		—		—		—		—		—	%
Municipal	—		—		—		—		—		—	%
Residential
Term	1,020,000		—		—		—		—		0.15	%
Construction	—		—		—		—		—		—	%
Home Equity
Revolving and term	—		—		—		—		68,000		0.06	%
Consumer	—		—		—		—		—		—	%
Total	$	3,831,000	$	—	$	—	$	—	$	293,000	0.18	%


			Payment Deferral
			Financial Effect
Commercial
Real estate owner occupied			Temporary payment accommodation, payments deferred to end of loan.
Construction			Temporary payment accommodation, payments deferred to end of loan.
C&I			Temporary payment accommodation, payments deferred to end of loan.
Multifamily			Temporary payment accommodation, payments deferred to end of loan.
Residential
Term			Temporary payment accommodation, payments deferred to end of loan.


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	$	504,000	$	—	$	—	$	—	$	—	0.17	%
Real estate non-owner occupied	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
C&I	19,000		—		—		—		—		0.01	%
Multifamily	—		—		—		—		—		—	%
Agriculture	—		—		—		—		—		—	%
Municipal	—		—		—		—		—		—	%
Residential
Term	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
Home Equity
Revolving and term	—		—		—		—		—		—	%
Consumer	—		—		—		—		—		—	%
Total	$	523,000	$	—	$	—	$	—	$	—	0.03	%


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	$	504,000	$	—	$	—	$	—	$	—	0.17	%
Real estate non-owner occupied	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
C&I	239,000		20,000		—		—		—		0.08	%
Multifamily	—		—		—		—		—		—	%
Agriculture	—		—		—		—		—		—	%
Municipal	—		—		—		—		—		—	%
Residential
Term	—		—		—		—		—		—	%
Construction	—		—		—		—		—		—	%
Home Equity
Revolving and term	—		—		—		—		—		—	%
Consumer	—		—		—		—		—		—	%
Total	$	743,000	$	20,000	$	—	$	—	$	—	0.04	%

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 September 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	$	903,000	$	—	$	—	$	—
Construction	69,000		—		—		—
C&I	230,000		—		205,000		—
Multifamily	1,932,000		—		—		—

Residential
Term	1,020,000		—		—		—
Home Equity
Revolving and term	68,000		—		—		—
Consumer	18,000		—		—		—
Total	$	4,240,000	$	—	$	205,000	$	—

As of September 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, and four mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $459,000 as of September 30, 2023.