LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Summary of loans outstanding

Summary of Loans by Type

(In Thousands)

	June 30,		December 31,
	2024		2023
Commercial real estate - non-owner occupied	$	723,964	$	737,342
Commercial real estate - owner occupied		267,169		237,246
All other commercial loans		431,106		399,693
Residential mortgage loans		409,824		413,714
Consumer loans		61,144		60,144
Total		1,893,207		1,848,139
Less: allowance for credit losses on loans		(20,382)		(19,208)
Loans, net	$	1,872,825	$	1,828,931

Summary of the past due loans

(In Thousands)	As of June 30, 2024
	Past Due		Past Due
	30-89		90+		Nonaccrual		Current		Total
	Days		Days		Loans		Loans		Loans
Commercial real estate - non-owner occupied	$	0	$	0	$	8,527	$	715,437	$	723,964
Commercial real estate - owner occupied		470		0		2,506		264,193		267,169
All other commercial loans		63		0		4,147		426,896		431,106
Residential mortgage loans		1,967		0		4,077		403,780		409,824
Consumer loans		588		20		322		60,214		61,144
Total	$	3,088	$	20	$	19,579	$	1,870,520	$	1,893,207

(In Thousands)	As of December 31, 2023
	Past Due		Past Due
	30-89		90+		Nonaccrual		Current		Total
	Days		Days		Loans		Loans		Loans
Commercial real estate - non-owner occupied	$	2,215	$	126	$	8,412	$	726,589	$	737,342
Commercial real estate - owner occupied		849		0		1,575		234,822		237,246
All other commercial loans		229		2,593		1,323		395,548		399,693
Residential mortgage loans		5,365		326		3,627		404,396		413,714
Consumer loans		617		145		240		59,142		60,144
Total	$	9,275	$	3,190	$	15,177	$	1,820,497	$	1,848,139

Schedule of aggregate credit quality classification of outstanding loans by risk

(In Thousands)	Term Loans by Year of Origination
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Commercial real estate - non-owner occupied
Pass	$	22,989	$	97,139	$	158,754	$	85,497	$	54,040	$	266,691	$	0	$	685,110
Special Mention		0		0		18,656		2,388		0		5,719		0		26,763
Substandard		0		0		64		0		0		12,027		0		12,091
Doubtful		0		0		0		0		0		0		0		0
Total commercial real estate - non-owner occupied	$	22,989	$	97,139	$	177,474	$	87,885	$	54,040	$	284,437	$	0	$	723,964
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	117	$	0	$	117
Commercial real estate - owner occupied
Pass	$	19,381	$	34,188	$	53,368	$	50,680	$	12,129	$	85,680	$	0	$	255,426
Special Mention		0		0		0		0		0		165		0		165
Substandard		0		5,216		738		2,467		0		3,157		0		11,578
Doubtful		0		0		0		0		0		0		0		0
Total commercial real estate - owner occupied	$	19,381	$	39,404	$	54,106	$	53,147	$	12,129	$	89,002	$	0	$	267,169
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
All other commercial loans
Pass	$	31,494	$	66,797	$	78,764	$	51,753	$	24,537	$	29,004	$	120,166	$	402,515
Special Mention		411		0		9,039		0		31		310		392		10,183
Substandard		0		0		1,242		5,146		325		1,387		10,308		18,408
Doubtful		0		0		0		0		0		0		0		0
Total all other commercial loans	$	31,905	$	66,797	$	89,045	$	56,899	$	24,893	$	30,701	$	130,866	$	431,106
Year-to-date gross charge-offs	$	0	$	0	$	0	$	60	$	0	$	0	$	0	$	60
Residential mortgage loans
Pass	$	18,229	$	55,539	$	83,693	$	52,879	$	37,745	$	156,960	$	0	$	405,045
Special Mention		0		0		0		0		0		0		0		0
Substandard		0		0		32		0		85		4,662		0		4,779
Doubtful		0		0		0		0		0		0		0		0
Total residential mortgage loans	$	18,229	$	55,539	$	83,725	$	52,879	$	37,830	$	161,622	$	0	$	409,824
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Consumer loans
Pass	$	2,758	$	4,606	$	3,639	$	1,417	$	966	$	817	$	46,435	$	60,638
Special Mention		0		0		0		0		0		0		0		0
Substandard		0		0		0		7		0		56		443		506
Doubtful		0		0		0		0		0		0		0		0
Total consumer loans	$	2,758	$	4,606	$	3,639	$	1,424	$	966	$	873	$	46,878	$	61,144
Year-to-date gross charge-offs	$	0	$	67	$	115	$	0	$	8	$	0	$	49	$	239

	Term Loans by Year of Origination
(In Thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
Commercial real estate - non-owner occupied
Pass	$	96,615	$	167,484	$	89,582	$	55,390	$	80,020	$	207,017		0		696,108
Special Mention		0		20,072		2,446		0		116		6,188		0		28,822
Substandard		0		0		0		18		566		11,828		0		12,412
Doubtful		0		0		0		0		0		0		0		0
Total commercial real estate - non-owner occupied	$	96,615	$	187,556	$	92,028	$	55,408	$	80,702	$	225,033	$	0	$	737,342
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - owner occupied
Pass	$	33,761	$	37,429	$	52,090	$	12,858	$	17,505	$	71,775	$	0	$	225,418
Special Mention		104		746		0		0		0		166		0		1,016
Substandard		5,200		0		2,567		0		0		3,045		0		10,812
Doubtful		0		0		0		0		0		0		0		0
Total commercial real estate - owner occupied	$	39,065	$	38,175	$	54,657	$	12,858	$	17,505	$	74,986	$	0	$	237,246
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
All other commercial loans
Pass	$	58,393	$	90,560	$	51,813	$	27,718	$	16,421	$	24,326	$	107,234	$	376,465
Special Mention		0		2,690		5,043		8		0		794		301		8,836
Substandard		0		1,267		1,250		453		679		1,085		9,658		14,392
Doubtful		0		0		0		0		0		0		0		0
Total all other commercial loans	$	58,393	$	94,517	$	58,106	$	28,179	$	17,100	$	26,205	$	117,193	$	399,693
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	12	$	12
Residential mortgage loans
Pass	$	57,300	$	87,519	$	56,183	$	39,411	$	32,401	$	135,546	$	0	$	408,360
Special Mention		0		0		0		0		0		0		0		0
Substandard		0		0		0		285		369		4,700		0		5,354
Doubtful		0		0		0		0		0		0		0		0
Total residential mortgage loans	$	57,300	$	87,519	$	56,183	$	39,696	$	32,770	$	140,246	$	0	$	413,714
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	33	$	0	$	33
Consumer loans
Pass	$	6,020	$	4,664	$	1,944	$	1,205	$	175	$	913	$	44,312	$	59,233
Special Mention		0		0		0		0		0		0		0		0
Substandard		0		0		5		11		1		58		836		911
Doubtful		0		0		0		0		0		0		0		0
Total consumer loans	$	6,020	$	4,664	$	1,949	$	1,216	$	176	$	971	$	45,148	$	60,144
Year-to-date gross charge-offs	$	0	$	149	$	0	$	18	$	3	$	3	$	138	$	311

Schedule of nonaccrual loans by major categories for the periods

	June 30, 2024
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
(In Thousands)	No Allowance		with an Allowance		Loans
Commercial real estate - non-owner occupied	$	4,642	$	3,885	$	8,527
Commercial real estate - owner occupied		2,228		278		2,506
All other commercial loans		1,697		2,450		4,147
Residential mortgage loans		4,077		0		4,077
Consumer loans		322		0		322
Total	$	12,966	$	6,613	$	19,579

	December 31, 2023
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
(In Thousands)	No Allowance		with an Allowance		Loans
Commercial real estate - non-owner occupied	$	1,111	$	7,301	$	8,412
Commercial real estate - owner occupied		1,281		294		1,575
All other commercial loans		1,132		191		1,323
Residential mortgage loans		3,627		0		3,627
Consumer loans		240		0		240
Total	$	7,391	$	7,786	$	15,177

Schedule of accrued Interest receivables written off

	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
(In Thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Commercial real estate - non-owner occupied	$	7	$	0	$	19	$	26
Commercial real estate - owner occupied		10		0		10		0
All other commercial loans		2		0		118		0
Residential mortgage loans		5		3		18		6
Consumer loans		2		0		4		2
Total	$	26	$	3	$	169	$	34

Schedule of collateral dependent loans

	June 30, 2024				December 31, 2023
	Amortized				Amortized
(In Thousands)	Cost		Allowance		Cost		Allowance
Commercial real estate - non-owner occupied	$	8,526	$	493	$	8,412	$	648
Commercial real estate - owner occupied		2,507		234		1,575		5
All other commercial loans		4,147		503		1,277		90
Total	$	15,180	$	1,230	$	11,264	$	743

Schedule of transactions within the allowance for loan losses

	Commercial		Commercial		All
	real estate -		real estate -		other		Residential
	nonowner		owner		commercial		mortgage		Consumer
(In Thousands)	occupied		occupied		loans		loans		loans		Total
Balance, March 31, 2024	$	12,533	$	2,718	$	3,580	$	769	$	423	$	20,023
Charge-offs		(117)		0		0		0		(119)		(236)
Recoveries		0		0		15		0		14		29
Provision (credit) for credit losses on loans		(239)		183		83		343		196		566
Balance, June 30, 2024	$	12,177	$	2,901	$	3,678	$	1,112	$	514	$	20,382

	Commercial		Commercial		All
	real estate -		real estate -		other		Residential
	nonowner		owner		commercial		mortgage		Consumer
(In Thousands)	occupied		occupied		loans		loans		loans		Total
Balance, December 31, 2023	$	12,010	$	2,116	$	2,918	$	1,764	$	400	$	19,208
Charge-offs		(117)		0		(60)		0		(239)		(416)
Recoveries		0		0		35		3		26		64
Provision (credit) for credit losses on loans		284		785		785		(655)		327		1,526
Balance, June 30, 2024	$	12,177	$	2,901	$	3,678	$	1,112	$	514	$	20,382

	Commercial		Commercial		All
	real estate -		real estate -		other		Residential
	nonowner		owner		commercial		mortgage		Consumer
(In Thousands)	occupied		occupied		loans		loans		loans		Total
Balance, March 31, 2023	$	9,654	$	1,942	$	3,580	$	2,864	$	306	$	18,346
Charge-offs		0		0		0		(14)		(120)		(134)
Recoveries		0		0		0		1		7		8
Provision (credit) for credit losses on loans		949		83		106		(387)		85		836
Balance, June 30, 2023	$	10,603	$	2,025	$	3,686	$	2,464	$	278	$	19,056

	Commercial		Commercial		All
	real estate -		real estate -		other		Residential
	nonowner		owner		commercial		mortgage		Consumer
(In Thousands)	occupied		occupied		loans		loans		loans		Unallocated		Total
Balance, December 31, 2022	$	6,305	$	1,942	$	4,142	$	2,751	$	475	$	1,000	$	16,615
Adoption of ASU 2016-13 (CECL)		3,763		7		(88)		(344)		(234)		(1,000)		2,104
Charge-offs		0		0		(5)		(33)		(163)		0		(201)
Recoveries		0		0		0		2		12		0		14
Provision (credit) for credit losses on loans		535		76		(363)		88		188		0		524
Balance, June 30, 2023	$	10,603	$	2,025	$	3,686	$	2,464	$	278	$	0	$	19,056

Summary of performance of loans which were in non-accrual status that were modified in the past twelve months

(In Thousands)	Payment Status (Amortized Costs Basis)
June 30, 2024	Current		90+ Days Past Due		Total
Commercial real estate - non-owner occupied:
Non-owner occupied	$	2,504	$	1,381	$	3,885

Schedule of carrying amount of foreclosed residential real estate properties

(In Thousands)	June 30,		December 31,
	2024		2023
Foreclosed residential real estate	$	25	$	47

Schedule of mortgage loans secured by residential real properties

(In Thousands)	June 30,		December 31,
	2024		2023
Residential real estate in process of foreclosure	$	690	$	1,227

Schedule of contract amounts of financial instruments with off-balance sheet risk

	June 30,		Dec. 31,
(In Thousands)	2024		2023
Commitments to extend credit	$	387,563	$	395,997
Standby letters of credit		57,532		19,158

Schedule of balance and activity in the allowance for credit losses for off-balance sheet exposures

	Three Months		Three Months		Six Months		Six Months
	Ended		Ended		Ended		Ended
(In Thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Beginning Balance	$	684	$	1,178	$	690	$	425
Adjustment to allowance for off-balance sheet exposures for adoption of ASU 2016-13		0		0		0		793
Credit for unfunded commitments		(1)		(24)		(7)		(64)
Ending Balance, June 30	$	683	$	1,154	$	683	$	1,154