Loans And The Allowance For Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Loans And The Allowance For Credit Losses [Abstract]


	September 30, 2023		December 31, 2022
Mortgage loans on real estate:	(in thousands)
Residential mortgages	$	441,021	$	440,123
Commercial and multi-family		829,736		778,714
Construction-Residential		2,747		3,626
Construction-Commercial		126,787		117,403
Home equities		81,482		82,414
Total real estate loans		1,481,773		1,422,280

Commercial and industrial loans		222,841		250,069
Consumer and other loans		555		572
Unaccreted yield adjustments*		(769)		(552)
Total gross loans		1,704,400		1,672,369

Allowance for credit losses		(21,846)		(19,438)

Loans, net	$	1,682,554	$	1,652,931

* Includes net premiums and discounts on acquired loans and net deferred fees and costs on loans originated.

Data, At Class Level, Of Credit Quality Indicators Of Certain Loans




(in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial loans
Risk rating
Pass	$	16,411	$	39,142	$	23,093	$	8,863	$	6,501	$	6,997	$	92,631	$	193,638
Special Mention		302		8,866		2,801		4,803		297		2,000		5,806		24,875
Substandard		-		2		3		19		-		915		3,393		4,332
Doubtful/Loss		-		-		-		-		-		-		-		-
Total	$	16,713	$	48,010	$	25,897	$	13,685	$	6,798	$	9,912	$	101,830	$	222,845

Current period gross writeoffs	$	-	$	-	$	-	$	-	$	4	$	-	$	-	$	4

Commercial real estate mortgages
Risk rating
Pass	$	98,073	$	204,029	$	172,097	$	94,617	$	67,061	$	274,443	$	-	$	910,320
Special Mention		-		2,021		401		1,527		10,077		9,887		-		23,913
Substandard		-		-		12,069		194		6,913		3,677		-		22,853
Doubtful/Loss		-		-		-		-		-		-		-		-
Total	$	98,073	$	206,050	$	184,567	$	96,338	$	84,051	$	288,007	$	-	$	957,086

Current period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer and other
Payment performance
Performing	$	347	$	208	$	30	$	15	$	16	$	26	$	141	$	783
Nonperforming		-		-		-		-		-		-		-		-
Total	$	347	$	208	$	30	$	15	$	16	$	26	$	141	$	783

Current period gross writeoffs	$	106	$	18	$	1	$	-	$	-	$	1	$	-	$	126

Residential mortgages
Payment performance
Performing	$	26,185	$	73,548	$	102,523	$	70,612	$	18,113	$	148,244	$	-	$	439,225
Nonperforming		163		145		390		223		205		3,174		-		4,300
Total	$	26,348	$	73,693	$	102,913	$	70,835	$	18,318	$	151,418	$	-	$	443,525

Current period gross writeoffs	$	-	$	-	$	-	$	1	$	-	$	-	$	-	$	1

Home equities
Payment performance
Performing	$	7,481	$	2,955	$	618	$	614	$	591	$	2,192	$	65,325	$	79,776
Nonperforming		-		-		-		-		-		2		383		385
Total	$	7,481	$	2,955	$	618	$	614	$	591	$	2,194	$	65,708	$	80,161

Current period gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	25	$	-	$	25

Recorded Investment In Loans Past Due



	September 30, 2023
	(in thousands)

		Current							Non-accruing		Total
		Balance	30-59 days		60-89 days		90+ days		Loans		Balance

Commercial and industrial	$	220,939	$	-	$	30	$	-	$	1,876	$	222,845
Residential real estate:
Residential		435,096		1,382		-		-		4,300		440,778
Construction		2,747		-		-		-		-		2,747
Commercial real estate:
Commercial		814,026		3,660		-		-		12,613		830,299
Construction		114,140		4,466		-		-		8,181		126,787
Home equities		77,666		1,614		496		-		385		80,161
Consumer and other		774		8		1		-		-		783
Total Loans	$	1,665,388	$	11,130	$	527	$	-	$	27,355	$	1,704,400



	December 31, 2022
	(in thousands)

		Current							Non-accruing		Total
		Balance	30-59 days		60-89 days		90+ days		Loans		Balance

Commercial and industrial	$	246,412	$	235	$	684	$	139	$	2,625	$	250,095
Residential real estate:
Residential		434,393		1,105		-		472		3,738		439,708
Construction		3,502		-		-		-		-		3,502
Commercial real estate:
Commercial		771,871		1,083		-		75		6,648		779,677
Construction		107,369		-		-		1,648		8,765		117,782
Home equities		79,320		759		206		100		563		80,948
Consumer and other		652		3		1		1		-		657
Total Loans	$	1,643,519	$	3,185	$	891	$	2,435	$	22,339	$	1,672,369

Schedule Of Allowance For Loan Losses According To Portfolio Segment



	Three months ended September 30, 2023
	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer and Other		Residential Mortgages*		Home Equities		Total

Allowance for credit	(in thousands)
losses:
Beginning balance	$	4,973	$	12,633	$	7	$	3,465	$	290	$	21,368
Charge-offs		(4)		-		(47)		-		-		(51)
Recoveries		6		-		5		7		5		23
Provision		61		280		42		102		21		506
Ending balance	$	5,036	$	12,913	$	7	$	3,574	$	316	$	21,846

*Includes construction loans



	Three months ended September 30, 2022
	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer and Other		Residential Mortgages*		Home Equities		Total

Allowance for credit	(in thousands)
losses:
Beginning balance	$	3,714	$	12,305	$	70	$	2,164	$	566	$	18,819
Charge-offs		(1,515)		-		(45)		-		-		(1,560)
Recoveries		40		-		3		-		-		43
Provision		1,805		(603)		13		47		66		1,328
Ending balance	$	4,044	$	11,702	$	41	$	2,211	$	632	$	18,630

* Includes construction loans

‎

The following tables present the activity in the allowance for credit losses according to portfolio segment for the nine month periods ended September 30, 2023 and 2022.




	Nine months ended September 30, 2023
	(in thousands)
	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer and Other		Residential Mortgages*		Home Equities		Total
Allowance for credit losses:
Beginning balance	$	4,980	$	11,595	$	153	$	2,102	$	608	$	19,438
Adoption of new accounting
standard		324		1,145		(147)		1,618		(205)		2,735
Beginning balance after
cumulative effect adjustment	$	5,304	$	12,740	$	6	$	3,720	$	403	$	22,173
Charge-offs		(4)		-		(126)		(1)		(25)		(156)
Recoveries		59		-		23		6		5		93
Provision		(323)		173		104		(151)		(67)		(264)
Ending balance	$	5,036	$	12,913	$	7	$	3,574	$	316	$	21,846

‎*Includes construction loans


	Nine months ended September 30, 2022
	(in thousands)
	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer and Other		Residential Mortgages*		Home Equities		Total
Allowance for credit losses:
Beginning balance	$	3,309	$	12,367	$	54	$	2,127	$	581	$	18,438
Charge-offs		(1,546)		-		(112)		(55)		-		(1,713)
Recoveries		76		-		13		-		-		89
Provision		2,205		(665)		86		139		51		1,816
Ending balance	$	4,044	$	11,702	$	41	$	2,211	$	632	$	18,630

*Includes construction loans

‎

The following tables present the allowance for credit losses and recorded investment on loans by segment as of September 30, 2023 and December 31, 2022:



	September 30, 2023
	(in thousands)
	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer and Other		Residential Mortgages*		Home Equities		Total
Allowance for credit
losses:
Ending balance:

Individually evaluated for impairment		-		179		-		2		-		181

Collectively evaluated for impairment		5,036		12,734		7		3,572		316		21,665
Total	$	5,036	$	12,913	$	7	$	3,574	$	316	$	21,846

Loans:
Ending balance:

Individually evaluated for impairment		1,914		23,557		-		4,844		721		31,036

Collectively evaluated for impairment		220,927		932,966		555		438,924		80,761		1,674,133
Total	$	222,841	$	956,523	$	555	$	443,768	$	81,482	$	1,705,169

* Includes construction loans



	December 31, 2022
	(in thousands)
	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer and Other		Residential Mortgages*		Home Equities		Total
Allowance for credit
losses:
Ending balance:
Loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-	$	-

Individually evaluated for impairment		-		251		-		28		77		356

Collectively evaluated for impairment		4,980		11,344		153		2,074		531		19,082
Total	$	4,980	$	11,595	$	153	$	2,102	$	608	$	19,438

Loans:
Ending balance:
Loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	687	$	-	$	687

Individually evaluated for impairment		2,697		18,144		-		4,020		949		25,810

Collectively evaluated for impairment		247,372		877,973		572		439,042		81,465		1,646,424
Total	$	250,069	$	896,117	$	572	$	443,749	$	82,414	$	1,672,921

Amortized Costs, At The Class Level, For Nonaccrual Loans


									Nine Months Ended
	September 30, 2023						January 1, 2023		September 30, 2023
	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Interest Income Recognized
	(in thousands)
Commercial and industrial	$	-	$	1,876	$	1,876	$	2,625	$	13
Residential real estate:
Residential		163		4,137		4,300		3,738		34
Construction		-		-		-		-		-
Commercial real estate:
Commercial		-		12,613		12,613		6,648		219
Construction		1,268		6,913		8,181		8,765		-
Home equities		-		385		385		563		7
Consumer and other		-		-		-		-		-
Total nonaccrual loans	$	1,431	$	25,924	$	27,355	$	22,339	$	273


									Nine Months Ended
	September 30, 2022						January 1, 2022		September 30, 2022
	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Interest Income Recognized
	(in thousands)
Commercial and industrial	$	2	$	4,478	$	4,480	$	4,919	$	6
Residential real estate:
Residential		246		3,452		3,698		3,020		12
Construction		-		-		-		-		-
Commercial real estate:
Commercial		171		9,026		9,197		5,758		183
Construction		-		8,927		8,927		2,942		-
Home equities		37		478		515		755		14
Consumer and other		-		-		-		-		-
Total nonaccrual loans	$	456	$	26,361	$	26,817	$	17,394	$	215

Modifications to Borrowers Experiencing Financial Difficulty



	(in thousands)	Term Extension		Total Class of Receivable
Commercial and industrial		$	451	0.20	%
Residential real estate:
Residential			558	0.13
Construction			-	-
Commercial real estate:
Commercial			-	-
Construction			-	-
Home equities			-	-
Consumer and other			-	-	-
Total nonaccrual loans		$	1,009	0.06	%