LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Summary of loans outstanding

Summary of Loans by Type

(In Thousands)

	September 30,		December 31,
	2024		2023
Commercial real estate - non-owner occupied	$	721,103	$	737,342
Commercial real estate - owner occupied		266,477		237,246
All other commercial loans		431,985		399,693
Residential mortgage loans		407,429		413,714
Consumer loans		65,770		60,144
Total		1,892,764		1,848,139
Less: allowance for credit losses on loans		(20,442)		(19,208)
Loans, net	$	1,872,322	$	1,828,931

Summary of the past due loans

(In Thousands)	As of September 30, 2024
	Past Due		Past Due
	30-89		90+		Nonaccrual		Current		Total
	Days		Days		Loans		Loans		Loans
Commercial real estate - non-owner occupied	$	7,867	$	0	$	7,799	$	705,437	$	721,103
Commercial real estate - owner occupied		467		0		1,741		264,269		266,477
All other commercial loans		4,999		0		10,151		416,835		431,985
Residential mortgage loans		2,284		0		4,325		400,820		407,429
Consumer loans		289		56		385		65,040		65,770
Total	$	15,906	$	56	$	24,401	$	1,852,401	$	1,892,764

(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	$	29,241	$	98,545	$	158,232	$	78,742	$	53,094	$	256,743	$	0	$	674,597
Special Mention		0		0		26,222		2,359		0		6,468		0		35,049
Substandard		119		0		63		0		0		11,275		0		11,457
Doubtful		0		0		0		0		0		0		0		0
Total commercial real estate - non-owner occupied	$	29,360	$	98,545	$	184,517	$	81,101	$	53,094	$	274,486	$	0	$	721,103
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	757	$	0	$	757
Commercial real estate - owner occupied
Pass	$	23,389	$	33,835	$	52,785	$	50,098	$	11,856	$	82,977	$	0	$	254,940
Special Mention		0		0		0		0		0		0		0		0
Substandard		0		5,172		733		2,417		0		3,215		0		11,537
Doubtful		0		0		0		0		0		0		0		0
Total commercial real estate - owner occupied	$	23,389	$	39,007	$	53,518	$	52,515	$	11,856	$	86,192	$	0	$	266,477
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
All other commercial loans
Pass	$	56,294	$	71,062	$	61,114	$	46,638	$	23,682	$	27,489	$	118,178	$	404,457
Special Mention		555		0		6,348		0		23		8		962		7,896
Substandard		44		0		3,546		5,229		302		1,240		9,271		19,632
Doubtful		0		0		0		0		0		0		0		0
Total all other commercial loans	$	56,893	$	71,062	$	71,008	$	51,867	$	24,007	$	28,737	$	128,411	$	431,985
Year-to-date gross charge-offs	$	0	$	0	$	427	$	60	$	21	$	122	$	0	$	630
Residential mortgage loans
Pass	$	28,053	$	52,234	$	81,960	$	51,686	$	36,947	$	151,334	$	0	$	402,214
Special Mention		0		0		0		0		0		0		0		0
Substandard		0		35		31		0		245		4,904		0		5,215
Doubtful		0		0		0		0		0		0		0		0
Total residential mortgage loans	$	28,053	$	52,269	$	81,991	$	51,686	$	37,192	$	156,238	$	0	$	407,429
Year-to-date gross charge-offs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Consumer loans
Pass	$	7,897	$	3,941	$	3,267	$	1,184	$	674	$	752	$	47,547	$	65,262
Special Mention		0		0		0		0		0		0		0		0
Substandard		0		2		0		0		0		55		451		508
Doubtful		0		0		0		0		0		0		0		0
Total consumer loans	$	7,897	$	3,943	$	3,267	$	1,184	$	674	$	807	$	47,998	$	65,770
Year-to-date gross charge-offs	$	0	$	67	$	130	$	7	$	8	$	1	$	84	$	297
Total Loans
Pass	$	144,874	$	259,617	$	357,358	$	228,348	$	126,253	$	519,295	$	165,725	$	1,801,470
Special Mention		555		0		32,570		2,359		23		6,476		962		42,945
Substandard		163		5,209		4,373		7,646		547		20,689		9,722		48,349
Doubtful		0		0		0		0		0		0		0		0
Total	$	145,592	$	264,826	$	394,301	$	238,353	$	126,823	$	546,460	$	176,409	$	1,892,764
Year-to-date gross charge-offs	$	0	$	67	$	557	$	67	$	29	$	880		84	$	1,684

	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
Total Loans
Pass	$	252,089	$	387,656	$	251,612	$	136,582	$	146,522	$	439,577	$	151,546	$	1,765,584
Special Mention		104		23,508		7,489		8		116		7,148		301		38,674
Substandard		5,200		1,267		3,822		767		1,615		20,716		10,494		43,881
Doubtful		0		0		0		0		0		0		0		0
Total	$	257,393	$	412,431	$	262,923	$	137,357	$	148,253	$	467,441	$	162,341	$	1,848,139
Year-to-date gross charge-offs	$	0	$	149	$	0	$	18	$	3	$	36		150	$	356

Schedule of nonaccrual loans by major categories for the periods

	September 30, 2024
	Nonaccrual Loans with		Nonaccrual Loans		Total Nonaccrual
(In Thousands)	No Allowance		with an Allowance		Loans
Commercial real estate - non-owner occupied	$	6,442	$	1,357	$	7,799
Commercial real estate - owner occupied		1,476		265		1,741
All other commercial loans		10,151		0		10,151
Residential mortgage loans		4,325		0		4,325
Consumer loans		385		0		385
Total	$	22,779	$	1,622	$	24,401

	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		Nine Months Ended		Nine Months Ended
(In Thousands)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Commercial real estate - non-owner occupied	$	0	$	22	$	19	$	48
Commercial real estate - owner occupied		0		0		10		0
All other commercial loans		79		0		197		0
Residential mortgage loans		6		11		24		17
Consumer loans		4		0		8		2
Total	$	89	$	33	$	258	$	67

Schedule of collateral dependent loans

	September 30, 2024				December 31, 2023
	Amortized				Amortized
(In Thousands)	Cost		Allowance		Cost		Allowance
Commercial real estate - non-owner occupied	$	7,799	$	14	$	8,412	$	648
Commercial real estate - owner occupied		1,741		159		1,575		5
All other commercial loans		10,151		0		1,277		90
Total	$	19,691	$	173	$	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, June 30, 2024	$	12,177	$	2,901	$	3,678	$	1,112	$	514	$	20,382
Charge-offs		(640)		0		(570)		0		(58)		(1,268)
Recoveries		0		0		5		1		25		31
Provision (credit) for credit losses on loans		381		(28)		311		647		(14)		1,297
Balance, September 30, 2024	$	11,918	$	2,873	$	3,424	$	1,760	$	467	$	20,442

	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		(757)		0		(630)		0		(297)		(1,684)
Recoveries		0		0		40		4		51		95
Provision (credit) for credit losses on loans		665		757		1,096		(8)		313		2,823
Balance, September 30, 2024	$	11,918	$	2,873	$	3,424	$	1,760	$	467	$	20,442

	Commercial		Commercial		All
	real estate -		real estate -		other		Residential
	nonowner		owner		commercial		mortgage		Consumer
(In Thousands)	occupied		occupied		loans		loans		loans		Total
Balance, June 30, 2023	$	10,603	$	2,025	$	3,686	$	2,464	$	278	$	19,056
Charge-offs		0		0		(7)		0		(91)		(98)
Recoveries		0		0		34		8		18		60
Provision (credit) for credit losses on loans		(268)		(161)		(161)		(479)		136		(933)
Balance, September 30, 2023	$	10,335	$	1,864	$	3,552	$	1,993	$	341	$	18,085

	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		(12)		(33)		(254)		0		(299)
Recoveries		0		0		34		10		30		0		74
Provision (credit) for credit losses on loans		267		(85)		(524)		(391)		324		0		(409)
Balance, September 30, 2023	$	10,335	$	1,864	$	3,552	$	1,993	$	341	$	0	$	18,085

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

(In Thousands)	Payment Status (Amortized Cost Basis)
September 30, 2024	Current		90+ Days Past Due		Total
Commercial real estate - non-owner occupied:
Non-owner occupied	$	1,846	$	1,357	$	3,203

Schedule of carrying amount of foreclosed residential real estate properties

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

Schedule of mortgage loans secured by residential real properties

(In Thousands)	September 30,		December 31,
	2024		2023
Residential real estate in process of foreclosure	$	616	$	1,227

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

	September 30,		December 31,
(In Thousands)	2024		2023
Commitments to extend credit	$	378,535	$	395,997
Standby letters of credit		64,938		19,158

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

		Three Months Ended				Nine Months Ended
(In Thousands)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Beginning Balance	$	683	$	1,154	$	690	$	425
Adjustment to allowance for off-balance sheet exposures for adoption of ASU 2016-13		0		0		0		793
Recoveries		0		38		0		38
Credit for unfunded commitments		(90)		(292)		(97)		(356)
Ending Balance, September 30	$	593	$	900	$	593	$	900