LOANS (Tables)

12 Months Ended

Dec. 31, 2022

LOANS

Summary of loans outstanding

	December 31,		December 31,
	2022		2021
Commercial:
Commercial loans secured by real estate	$	682,249	$	569,840
Commercial and industrial		178,271		159,073
Paycheck Protection Program - 1st Draw		5		1,356
Paycheck Protection Program - 2nd Draw		163		25,508
Political subdivisions		90,719		81,301
Commercial construction and land		73,963		60,579
Loans secured by farmland		12,950		11,121
Multi-family (5 or more) residential		55,886		50,089
Agricultural loans		2,435		2,351
Other commercial loans		14,857		17,153
Total commercial		1,111,498		978,371
Residential mortgage:
Residential mortgage loans - first liens		509,782		483,629
Residential mortgage loans - junior liens		24,949		23,314
Home equity lines of credit		43,798		39,252
1-4 Family residential construction		30,577		23,151
Total residential mortgage		609,106		569,346
Consumer		19,436		17,132
Total		1,740,040		1,564,849
Less: allowance for loan losses		(16,615)		(13,537)
Loans, net	$	1,723,425	$	1,551,312

Schedule of adjustments to the initial market rate and credit fair value adjustments recognized

(In Thousands)	Year Ended
	December 31,		December 31,
	2022		2021
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(637)	$	718
Amortization recognized in interest income		(279)		(1,355)
Adjustments to gross amortized cost of loans at end of period	$	(916)	$	(637)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(3,335)	$	(5,979)
Accretion recognized in interest income		1,495		2,644
Adjustments to gross amortized cost of loans at end of period	$	(1,840)	$	(3,335)

Schedule of PCI loans

(In Thousands)	December 31,		December 31,
	2022		2021
Outstanding balance	$	1,833	$	9,802
Carrying amount		1,027		6,558

Schedule of transactions within the allowance for loan losses

	December 31,								December 31,
Year Ended December 31, 2022	2021						Provision		2022
(In Thousands)	Balance		Charge-offs		Recoveries		(Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	4,405	$	(3,942)	$	0	$	6,611	$	7,074
Commercial and industrial		2,723		(150)		0		336		2,909
Commercial construction and land		637		0		0		10		647
Loans secured by farmland		115		0		0		(3)		112
Multi-family (5 or more) residential		215		0		0		196		411
Agricultural loans		25		0		0		(4)		21
Other commercial loans		173		0		0		(49)		124
Total commercial		8,293		(4,092)		0		7,097		11,298
Residential mortgage:
Residential mortgage loans - first liens		3,650		0		4		(241)		3,413
Residential mortgage loans - junior liens		184		0		0		(17)		167
Home equity lines of credit		302		0		15		(35)		282
1-4 Family residential construction		202		0		0		9		211
Total residential mortgage		4,338		0		19		(284)		4,073
Consumer		235		(153)		49		113		244
Unallocated		671		0		0		329		1,000
Total Allowance for Loan Losses	$	13,537	$	(4,245)	$	68	$	7,255	$	16,615

	December 31,								December 31,
Year Ended December 31, 2021	2020						Provision		2021
(In Thousands)	Balance		Charge-offs		Recoveries		(Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	3,051	$	0	$	2	$	1,352	$	4,405
Commercial and industrial		2,245		(1,464)		20		1,922		2,723
Commercial construction and land		454		0		0		183		637
Loans secured by farmland		120		0		0		(5)		115
Multi-family (5 or more) residential		236		0		0		(21)		215
Agricultural loans		34		0		0		(9)		25
Other commercial loans		168		0		0		5		173
Total commercial		6,308		(1,464)		22		3,427		8,293
Residential mortgage:
Residential mortgage loans - first liens		3,524		(11)		4		133		3,650
Residential mortgage loans - junior liens		349		0		0		(165)		184
Home equity lines of credit		281		0		2		19		302
1-4 Family residential construction		99		0		0		103		202
Total residential mortgage		4,253		(11)		6		90		4,338
Consumer		239		(100)		38		58		235
Unallocated		585		0		0		86		671
Total Allowance for Loan Losses	$	11,385	$	(1,575)	$	66	$	3,661	$	13,537

	December 31,								December 31,
Year Ended December 31, 2020	2019						Provision		2020
(In Thousands)	Balance		Charge-offs		Recoveries		(Credit)		Balance
Allowance for Loan Losses:
Commercial:
Commercial loans secured by real estate	$	1,921	$	0	$	0	$	1,130	$	3,051
Commercial and industrial		1,391		(2,236)		16		3,074		2,245
Commercial construction and land		966		(107)		0		(405)		454
Loans secured by farmland		158		0		0		(38)		120
Multi-family (5 or more) residential		156		0		0		80		236
Agricultural loans		41		0		0		(7)		34
Other commercial loans		155		0		0		13		168
Total commercial		4,788		(2,343)		16		3,847		6,308
Residential mortgage:
Residential mortgage loans - first liens		3,405		0		39		80		3,524
Residential mortgage loans - junior liens		384		0		1		(36)		349
Home equity lines of credit		276		0		4		1		281
1-4 Family residential construction		117		0		0		(18)		99
Total residential mortgage		4,182		0		44		27		4,253
Consumer		281		(122)		41		39		239
Unallocated		585		0		0		0		585
Total Allowance for Loan Losses	$	9,836	$	(2,465)	$	101	$	3,913	$	11,385

Schedule of aggregate credit quality classification of outstanding loans by risk

December 31, 2022									Purchased
(In Thousands)			Special						Credit
	Pass		Mention		Substandard		Doubtful		Impaired		Total
Commercial:
Commercial loans secured by real estate	$	666,442	$	4,589	$	10,231	$	0	$	987	$	682,249
Commercial and Industrial		156,042		910		21,279		0		40		178,271
Paycheck Protection Program - 1st Draw		5		0		0		0		0		5
Paycheck Protection Program - 2nd Draw		163		0		0		0		0		163
Political subdivisions		90,719		0		0		0		0		90,719
Commercial construction and land		73,179		517		267		0		0		73,963
Loans secured by farmland		11,136		519		1,295		0		0		12,950
Multi-family (5 or more) residential		55,034		0		852		0		0		55,886
Agricultural loans		1,831		28		576		0		0		2,435
Other commercial loans		14,857		0		0		0		0		14,857
Total commercial		1,069,408		6,563		34,500		0		1,027		1,111,498
Residential Mortgage:
Residential mortgage loans - first liens		496,156		7,125		6,501		0		0		509,782
Residential mortgage loans - junior liens		24,495		164		290		0		0		24,949
Home equity lines of credit		43,289		59		450		0		0		43,798
1-4 Family residential construction		30,577		0		0		0		0		30,577
Total residential mortgage		594,517		7,348		7,241		0		0		609,106
Consumer		19,350		0		86		0		0		19,436
Totals	$	1,683,275	$	13,911	$	41,827	$	0	$	1,027	$	1,740,040

December 31, 2021									Purchased
(In Thousands)			Special						Credit
	Pass		Mention		Substandard		Doubtful		Impaired		Total
Commercial:
Commercial loans secured by real estate	$	538,966	$	10,510	$	16,220	$	0	$	4,144	$	569,840
Commercial and Industrial		142,775		10,841		4,694		0		763		159,073
Paycheck Protection Program - 1st Draw		1,356		0		0		0		0		1,356
Paycheck Protection Program - 2nd Draw		25,508		0		0		0		0		25,508
Political subdivisions		81,301		0		0		0		0		81,301
Commercial construction and land		59,816		715		48		0		0		60,579
Loans secured by farmland		10,011		186		924		0		0		11,121
Multi-family (5 or more) residential		47,638		0		873		0		1,578		50,089
Agricultural loans		1,802		0		549		0		0		2,351
Other commercial loans		17,150		3		0		0		0		17,153
Total commercial		926,323		22,255		23,308		0		6,485		978,371
Residential Mortgage:
Residential mortgage loans - first liens		469,044		7,981		6,534		0		70		483,629
Residential mortgage loans - junior liens		22,914		114		283		0		3		23,314
Home equity lines of credit		38,652		59		541		0		0		39,252
1-4 Family residential construction		23,151		0		0		0		0		23,151
Total residential mortgage		553,761		8,154		7,358		0		73		569,346
Consumer		17,092		0		40		0		0		17,132
Totals	$	1,497,176	$	30,409	$	30,706	$	0	$	6,558	$	1,564,849

Summary of loan balances and the related allowance for loan losses

December 31, 2022	Loans:						Allowance for Loan Losses:
(In Thousands)
	Individually		Collectively				Individually		Collectively
	Evaluated		Evaluated		Totals		Evaluated		Evaluated		Totals
Commercial:
Commercial loans secured by real estate	$	7,154	$	675,095	$	682,249	$	427	$	6,647	$	7,074
Commercial and industrial		11,223		167,048		178,271		26		2,883		2,909
Paycheck Protection Program - 1st Draw		0		5		5		0		0		0
Paycheck Protection Program - 2nd Draw		0		163		163		0		0		0
Political subdivisions		0		90,719		90,719		0		0		0
Commercial construction and land		244		73,719		73,963		0		647		647
Loans secured by farmland		76		12,874		12,950		0		112		112
Multi-family (5 or more) residential		0		55,886		55,886		0		411		411
Agricultural loans		57		2,378		2,435		0		21		21
Other commercial loans		0		14,857		14,857		0		124		124
Total commercial		18,754		1,092,744		1,111,498		453		10,845		11,298
Residential mortgage:
Residential mortgage loans - first liens		506		509,276		509,782		0		3,413		3,413
Residential mortgage loans - junior liens		30		24,919		24,949		0		167		167
Home equity lines of credit		68		43,730		43,798		0		282		282
1-4 Family residential construction		0		30,577		30,577		0		211		211
Total residential mortgage		604		608,502		609,106		0		4,073		4,073
Consumer		0		19,436		19,436		0		244		244
Unallocated												1,000
Total	$	19,358	$	1,720,682	$	1,740,040	$	453	$	15,162	$	16,615

December 31, 2021	Loans:						Allowance for Loan Losses:
(In Thousands)
	Individually		Collectively				Individually		Collectively
	Evaluated		Evaluated		Totals		Evaluated		Evaluated		Totals
Commercial:
Commercial loans secured by real estate	$	10,926	$	558,914	$	569,840	$	669	$	3,736	$	4,405
Commercial and industrial		2,503		156,570		159,073		71		2,652		2,723
Paycheck Protection Program - 1st Draw		0		1,356		1,356		0		0		0
Paycheck Protection Program - 2nd Draw		0		25,508		25,508		0		0		0
Political subdivisions		0		81,301		81,301		0		0		0
Commercial construction and land		0		60,579		60,579		0		637		637
Loans secured by farmland		83		11,038		11,121		0		115		115
Multi-family (5 or more) residential		1,578		48,511		50,089		0		215		215
Agricultural loans		0		2,351		2,351		0		25		25
Other commercial loans		0		17,153		17,153		0		173		173
Total commercial		15,090		963,281		978,371		740		7,553		8,293
Residential mortgage:
Residential mortgage loans - first liens		630		482,999		483,629		0		3,650		3,650
Residential mortgage loans - junior liens		14		23,300		23,314		0		184		184
Home equity lines of credit		0		39,252		39,252		0		302		302
1-4 Family residential construction		0		23,151		23,151		0		202		202
Total residential mortgage		644		568,702		569,346		0		4,338		4,338
Consumer		0		17,132		17,132		0		235		235
Unallocated												671
Total	$	15,734	$	1,549,115	$	1,564,849	$	740	$	12,126	$	13,537

Summary of information related to impaired loans

(In Thousands)	December 31, 2022						December 31, 2021
	Unpaid						Unpaid
	Principal		Recorded		Related		Principal		Recorded		Related
	Balance		Investment		Allowance		Balance		Investment		Allowance
With no related allowance recorded:
Commercial loans secured by real estate	$	8,563	$	3,754	$	0	$	6,600	$	4,458	$	0
Commercial and industrial		12,926		11,163		0		5,213		2,431		0
Residential mortgage loans - first liens		506		506		0		656		630		0
Residential mortgage loans - junior liens		68		30		0		124		14		0
Home equity lines of credit		68		68		0		0		0		0
Loans secured by farmland		76		76		0		83		83		0
Agricultural loans		57		57		0		0		0		0
Construction and other land loans		244		244		0		0		0		0
Multi-family (5 or more) residential		0		0		0		2,734		1,578		0
Total with no related allowance recorded		22,508		15,898		0		15,410		9,194		0
With a related allowance recorded:
Commercial loans secured by real estate		3,400		3,400		427		6,468		6,468		668
Commercial and industrial		60		60		26		72		72		72
Total with a related allowance recorded		3,460		3,460		453		6,540		6,540		740
Total	$	25,968	$	19,358	$	453	$	21,950	$	15,734	$	740

Schedule of average balance of impaired loans and interest income recognized on impaired loans

(In Thousands)							Interest Income Recognized on
	Average Investment in						on Impaired Loans
	Impaired Loans						on a Cash Basis
	Year Ended December 31,						Year Ended December 31,
	2022		2021		2020		2022		2021		2020
Commercial:
Commercial loans secured by real estate	$	9,757	$	11,617	$	5,266	$	657	$	557	$	258
Commercial and industrial		2,078		2,636		2,542		210		34		34
Commercial construction and land		72		48		521		3		3		15
Loans secured by farmland		80		84		319		0		1		27
Multi-family (5 or more) residential		197		1,583		202		1,156		133		0
Agricultural loans		60		67		76		4		4		4
Other commercial loans		0		0		18		0		0		1
Total commercial		12,244		16,035		8,944		2,030		732		339
Residential mortgage:
Residential mortgage loans - first lien		575		1,647		1,853		24		78		116
Residential mortgage loans - junior lien		33		361		392		7		11		22
Home equity lines of credit		43		0		57		4		0		3
Total residential mortgage		651		2,008		2,302		35		89		141
Total	$	12,895	$	18,043	$	11,246	$	2,065	$	821	$	480

Schedule of breakdown by portfolio segment and class of non accrual loans

(In Thousands)	December 31, 2022				December 31, 2021
	Past Due				Past Due
	90+ Days and				90+ Days and
	Accruing		Nonaccrual		Accruing		Nonaccrual
Commercial:
Commercial loans secured by real estate	$	612	$	7,153	$	738	$	10,885
Commercial and industrial		80		11,165		30		2,299
Commercial construction and land		0		244		0		48
Loans secured by farmland		0		76		28		83
Multi-family (5 or more) residential		0		0		0		1,578
Agricultural loans		57		0		65		0
Total commercial		749		18,638		861		14,893
Residential mortgage:
Residential mortgage loans - first liens		1,288		4,259		1,144		4,005
Residential mortgage loans - junior liens		54		0		69		3
Home equity lines of credit		102		129		102		82
Total residential mortgage		1,444		4,388		1,315		4,090
Consumer		44		59		43		16
Totals	$	2,237	$	23,085	$	2,219	$	18,999

Summary of the contractual aging of loans

(In Thousands)	As of December 31, 2022								As of December 31, 2021
	Current &								Current &
	Past Due		Past Due		Past Due				Past Due		Past Due		Past Due
	Less than		30-89		90+				Less than		30-89		90+
	30 Days		Days		Days		Total		30 Days		Days		Days		Total
Commercial:
Commercial loans secured by real estate	$	676,779	$	1,105	$	4,365	$	682,249	$	563,658	$	762	$	5,420	$	569,840
Commercial and industrial		177,747		319		205		178,271		158,188		72		813		159,073
Paycheck Protection Program - 1st Draw		5		0		0		5		1,339		17		0		1,356
Paycheck Protection Program - 2nd Draw		163		0		0		163		25,508		0		0		25,508
Political subdivisions		90,719		0		0		90,719		81,301		0		0		81,301
Commercial construction and land		73,766		0		197		73,963		60,509		70		0		60,579
Loans secured by farmland		12,856		18		76		12,950		11,010		0		111		11,121
Multi-family (5 or more) residential		55,886		0		0		55,886		48,532		0		1,557		50,089
Agricultural loans		2,378		0		57		2,435		2,279		7		65		2,351
Other commercial loans		14,857		0		0		14,857		17,153		0		0		17,153
Total commercial		1,105,156		1,442		4,900		1,111,498		969,477		928		7,966		978,371
Residential mortgage:
Residential mortgage loans - first liens		500,778		5,323		3,681		509,782		475,637		5,038		2,954		483,629
Residential mortgage loans - junior liens		24,702		193		54		24,949		23,229		16		69		23,314
Home equity lines of credit		42,952		652		194		43,798		38,830		279		143		39,252
1-4 Family residential construction		30,577		0		0		30,577		23,151		0		0		23,151
Total residential mortgage		599,009		6,168		3,929		609,106		560,847		5,333		3,166		569,346
Consumer		19,169		164		103		19,436		17,001		72		59		17,132
Totals	$	1,723,334	$	7,774	$	8,932	$	1,740,040	$	1,547,325	$	6,333	$	11,191	$	1,564,849

Summary of the contractual aging of nonaccrual loans

(In Thousands)	Current &
	Past Due		Past Due		Past Due
	Less than		30-89		90+
	30 Days		Days		Days		Total
December 31, 2022 Nonaccrual Totals	$	15,695	$	695	$	6,695	$	23,085
December 31, 2021 Nonaccrual Totals	$	8,800	$	1,227	$	8,972	$	18,999

Summary of troubled debt restructurings

(In Thousands)	Current &
	Past Due		Past Due		Past Due
	Less than		30-89		90+
	30 Days		Days		Days		Nonaccrual		Total
December 31, 2022 Totals	$	503	$	68	$	57	$	3,799	$	4,427
December 31, 2021 Totals	$	248	$	40	$	65	$	5,452	$	5,805

Schedule of loan modifications considered as TDRs

	2022			2021			2020
	Number			Number			Number
	of	Recorded		of	Recorded		of	Recorded
(Balances in Thousands)	Loans	Investment		Loans	Investment		Loans	Investment
Commercial loans secured by real estate	0	$	0	1	$	3,405	1	$	240
Total	0	$	0	1	$	3,405	1	$	240

Schedule of carrying amount of foreclosed residential real estate properties

(In Thousands)	December 31,		December 31,
	2022		2021
Foreclosed residential real estate	$	0	$	256

Schedule of mortgage loans secured by residential real properties

(In Thousands)	December 31,		December 31,
	2022		2021
Residential real estate in process of foreclosure	$	1,229	$	1,260

Troubled Debt Restructuring

LOANS

Summary of troubled debt restructurings

(Balances in Thousands)	2022			2021			2020
		Post-			Post-			Post-
	Number	Modification		Number	Modification		Number	Modification
	of	Recorded		of	Recorded		of	Recorded
	Loans	Investment		Loans	Investment		Loans	Investment
Residential mortgage - first liens:
Reduced monthly payments and extended maturity date	0	$	0	1	$	12	0	$	0
Reduced monthly payments for a fifteen-month period	0		0	1		116	0		0
Residential mortgage - junior liens:
Reduced monthly payments and extended maturity date	1		48	0		0	0		0
New loan at lower than risk-adjusted market rate to borrower from whom short sale of other collateral was accepted	0		0	0		0	1		30
Home equity lines of credit:
Reduced monthly payments and extended maturity date	0		0	1		24	0		0
Reduced monthly payments for an eighteen-month period	0		0	1		70	0		0
Commercial loans secured by real estate:
Interest only payments for a nine-month period	0		0	0		0	1		240
Principal and interest payment deferral non-COVID related	0		0	0		0	2		4,831
Multi-family (5 or more) residential,
Principal and interest payment deferral non-COVID related	0		0	0		0	3		2,170
Loans secured by farmland,
Deferral of principal and interest payments for 12 months with a balloon payment at maturity	1		268	0		0	0		0
Total	2	$	316	4	$	222	7	$	7,271