Loans (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Leases Receivable Disclosure [Abstract]

Loan Portfolio

The Company’s loan portfolio consisted of the following as of the dates indicated (in thousands):

	Principal Amount Outstanding		Net Deferred Loan (Fees) Costs			Loans, Net
March 31, 2024
Commercial business	$	706,756	$	808		$	707,564
Commercial mortgage		2,048,580		(3,524	)		2,045,056
Residential real estate loans		635,849		12,311			648,160
Residential real estate lines		72,307		3,361			75,668
Consumer indirect		889,129		31,299			920,428
Other consumer		45,243		(73	)		45,170
Total	$	4,397,864	$	44,182			4,442,046
Allowance for credit losses – loans							(43,075	)
Total loans, net						$	4,398,971
December 31, 2023
Commercial business	$	734,947	$	753		$	735,700
Commercial mortgage		2,009,269		(3,950	)		2,005,319
Residential real estate loans		637,173		12,649			649,822
Residential real estate lines		73,972		3,395			77,367
Consumer indirect		915,723		33,108			948,831
Other consumer		45,167		(67	)		45,100
Total	$	4,416,251	$	45,888			4,462,139
Allowance for credit losses – loans							(51,082	)
Total loans, net						$	4,411,057

Recorded Investment by Loan Class in Current and Nonaccrual Loans

The Company’s recorded investment, by loan class, in current and nonaccrual loans, as well as an analysis of accruing delinquent loans is set forth as of the dates indicated (in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Nonaccrual		Current		Total Loans		Nonaccrual with no allowance
March 31, 2024
Commercial business	$	2,950	$	—	$	—	$	2,950	$	5,956	$	697,850	$	706,756	$	315
Commercial mortgage		—		36		—		36		10,826		2,037,718		2,048,580		10,826
Residential real estate loans		1,481		—		—		1,481		6,797		627,571		635,849		6,797
Residential real estate lines		68		119		—		187		235		71,885		72,307		235
Consumer indirect		6,578		1,546		—		8,124		2,880		878,125		889,129		2,880
Other consumer		86		6		36		128		—		45,115		45,243		—
Total loans, gross	$	11,163	$	1,707	$	36	$	12,906	$	26,694	$	4,358,264	$	4,397,864	$	21,053
December 31, 2023
Commercial business	$	341	$	—	$	—	$	341	$	5,664	$	728,942	$	734,947	$	341
Commercial mortgage		5,900		727		—		6,627		10,563		1,992,079		2,009,269		10,563
Residential real estate loans		2,614		80		—		2,694		6,364		628,115		637,173		6,364
Residential real estate lines		163		20		—		183		221		73,568		73,972		221
Consumer indirect		16,128		3,204		—		19,332		3,814		892,577		915,723		3,814
Other consumer		122		27		21		170		13		44,984		45,167		13
Total loans, gross	$	25,268	$	4,058	$	21	$	29,347	$	26,639	$	4,360,265	$	4,416,251	$	21,316

Amortized Cost basis of Loans Modified to Borrowers Experiencing Financial Difficulty

The following table presents the amortized cost basis of loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted as of March 31, 2024 (in thousands):

	Term Extension
	Amortized Cost Basis		% of Total Loans
Loan Type
Commercial business	$	—		0.0	%
Commercial mortgage		—		0.0	%
Residential real estate loans		1,506		0.2	%
Residential real estate lines		—		0.0	%
Consumer indirect		—		0.0	%
Other consumer		—		0.0	%
Total	$	1,506		0.0	%

Financial Effect of the Modifications Made to Borrowers Experiencing Financial Difficulty

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Term Extension
Loan Type	Financial Effect
Residential real estate loans	Added a weighted average 10.0 years to the life of the loans, which reduced monthly payment amount for the borrower.

(4.) LOANS (Continued)

Performance of Loans that are Modified to Borrowers Experiencing Financial Difficulty

The following table depicts the performance of loans that have been modified in the three months ended March 31, 2024 (in thousands):

	Payment Status (Amortized Cost Basis)
	Current		30-89 Days Past Due		90+ Days Past Due
Loan Type
Commercial business	$	-	$	-	$	-
Commercial mortgage		-		-		-
Residential real estate loans		865		144		97
Residential real estate lines		-		-		-
Consumer indirect		-		-		-
Other consumer		-		-		-
Total	$	865	$	144	$	97

Summary of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by collateral type as of March 31, 2024 and December 31, 2023 (in thousands):

	Collateral type
	Business assets		Real property		Total		Specific Reserve
March 31, 2024
Commercial business	$	7,260	$	5,000	$	12,260	$	2,314
Commercial mortgage		—		20,808		20,808		—
Total	$	7,260	$	25,808	$	33,068	$	2,314
December 31, 2023
Commercial business	$	8,698	$	5,000	$	13,698	$	2,198
Commercial mortgage		—		26,575		26,575		559
Total	$	8,698	$	31,575	$	40,273	$	2,757

Commercial Loan Portfolio Categorized by Internally Assigned Asset Classification

The following tables set forth the Company’s commercial loan portfolio, categorized by internally assigned asset classification, as of the dates indicated (in thousands):

	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
March 31, 2024
Commercial Business:
Uncriticized	$	7,337	$	107,289	$	96,821	$	75,632	$	39,515	$	74,444	$	277,930	$	—	$	678,968
Special mention		—		7,023		—		2,310		—		950		2,379		—		12,662
Substandard		57		1,243		10		105		27		6		8,570		—		10,018
Doubtful		—		—		5,041		—		—		633		242		—		5,916
Total Commercial Business loans	$	7,394	$	115,555	$	101,872	$	78,047	$	39,542	$	76,033	$	289,121	$	—	$	707,564
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	17	$	—	$	—	$	17
Commercial Mortgage:
Uncriticized	$	25,656	$	364,635	$	629,850	$	317,407	$	209,655	$	429,008	$	—	$	—	$	1,976,211
Special mention		—		—		4,716		17,414		6,825		17,417		—		—		46,372
Substandard		—		—		—		212		895		10,541		—		—		11,648
Doubtful		—		1,394		333		4,098		13		4,987		—		—		10,825
Total Commercial Mortgage loans	$	25,656	$	366,029	$	634,899	$	339,131	$	217,388	$	461,953	$	—	$	—	$	2,045,056
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
December 31, 2023
Commercial Business
Uncriticized	$	111,035	$	124,572	$	77,079	$	49,531	$	21,971	$	64,648	$	257,585	$	—	$	706,421
Special mention		7,532		—		2,400		—		114		—		2,442		—		12,488
Substandard		1,609		11		81		—		—		888		8,532		—		11,121
Doubtful		—		5,097		—		—		14		397		162		—		5,670
Total	$	120,176	$	129,680	$	79,560	$	49,531	$	22,099	$	65,933	$	268,721	$	—	$	735,700
Current period gross write-offs	$	—	$	5	$	3	$	31	$	8	$	235	$	—	$	—	$	282
Commercial Mortgage
Uncriticized	$	350,370	$	603,686	$	328,916	$	209,213	$	151,022	$	294,703	$	—	$	—	$	1,937,910
Special mention		—		494		17,136		8,982		119		11,355		—		—		38,086
Substandard		—		338		212		918		—		17,291		—		—		18,759
Doubtful		1,397		—		4,098		14		67		4,988		—		—		10,564
Total	$	351,767	$	604,518	$	350,362	$	219,127	$	151,208	$	328,337	$	—	$	—	$	2,005,319

Retail Loan Portfolio Categorized by Performance Status

The following tables set forth the Company’s retail loan portfolio, categorized by performance status, as of the dates indicated (in thousands):

	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
March 31, 2024
Residential Real Estate Loans
Performing	$	8,514	$	114,423	$	79,271	$	78,727	$	107,364	$	253,064	$	—	$	—	$	641,363
Non-performing		—		298		522		1,084		1,427		3,466		—		—		6,797
Total Residential Real Estate Loans	$	8,514	$	114,721	$	79,793	$	79,811	$	108,791	$	256,530	$	—	$	—	$	648,160
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Real Estate Lines
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	70,458	$	4,975	$	75,433
Non-performing		—		—		—		—		—		—		73		162		235
Total Residential Real Estate Lines	$	—	$	—	$	—	$	—	$	—	$	—	$	70,531	$	5,137	$	75,668
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer Indirect
Performing	$	54,006	$	234,715	$	310,666	$	210,874	$	68,800	$	38,487	$	—	$	—	$	917,548
Non-performing		—		566		969		882		294		169		—		—		2,880
Total Consumer Indirect Loans	$	54,006	$	235,281	$	311,635	$	211,756	$	69,094	$	38,656	$	—	$	—	$	920,428
Current period gross write-offs	$	—	$	1,357	$	2,245	$	1,422	$	504	$	689	$	—	$	—	$	6,217
Other Consumer
Performing	$	1,924	$	35,157	$	3,489	$	1,228	$	751	$	385	$	2,200	$	—	$	45,134
Non-performing		—		—		—		—		—		—		36		—		36
Total Other Consumer Loans	$	1,924	$	35,157	$	3,489	$	1,228	$	751	$	385	$	2,236	$	—	$	45,170
Current period gross write-offs	$	93	$	42	$	75	$	7	$	16	$	4	$	32	$	—	$	269

(4.) LOANS (Continued)

	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
December 31, 2023
Residential Real Estate Loans
Performing	$	112,704	$	80,117	$	80,323	$	109,601	$	70,325	$	190,388	$	—	$	—	$	643,458
Non-performing		—		384		1,190		1,354		1,137		2,299		—		—		6,364
Total	$	112,704	$	80,501	$	81,513	$	110,955	$	71,462	$	192,687	$	—	$	—	$	649,822
Current period gross write-offs	$	—	$	—	$	—	$	—	$	32	$	95	$	—	$	—	$	127
Residential Real Estate Lines
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	72,128	$	5,018	$	77,146
Non-performing		—		—		—		—		—		—		55		166		221
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	72,183	$	5,184	$	77,367
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	28	$	13	$	41
Consumer Indirect
Performing	$	247,194	$	336,369	$	232,891	$	78,652	$	31,091	$	18,820	$	—	$	—	$	945,017
Non-performing		724		1,083		1,273		380		224		130		—		—		3,814
Total	$	247,918	$	337,452	$	234,164	$	79,032	$	31,315	$	18,950	$	—	$	—	$	948,831
Current period gross write-offs	$	1,371	$	6,279	$	5,845	$	1,787	$	1,282	$	1,459	$	—	$	—	$	18,023
Other Consumer
Performing	$	35,483	$	3,990	$	1,424	$	949	$	217	$	256	$	2,747	$	—	$	45,066
Non-performing		13		—		—		—		—		—		21		—		34
Total	$	35,496	$	3,990	$	1,424	$	949	$	217	$	256	$	2,768	$	—	$	45,100

Changes in the Allowance for Loan Losses

The following table sets forth the changes in the allowance for credit losses – loans for the three months ended March 31, 2024 and 2023 (in thousands):

	Commercial Business			Commercial Mortgage			Residential Real Estate Loans			Residential Real Estate Lines			Consumer Indirect			Other Consumer			Total
Three months ended March 31, 2024
Allowance for credit losses – loans:
Beginning balance	$	13,102		$	15,858		$	5,286		$	764		$	14,099		$	1,973		$	51,082
Charge-offs		(17	)		—			(8	)		—			(6,217	)		(269	)		(6,511	)
Recoveries		54			1			4			—			3,244			87			3,390
(Benefit) provision		(148	)		(1,746	)		(652	)		30			(1,272	)		(1,098	)		(4,886	)
Ending balance	$	12,991		$	14,113		$	4,630		$	794		$	9,854		$	693		$	43,075
	Commercial Business			Commercial Mortgage			Residential Real Estate Loans			Residential Real Estate Lines			Consumer Indirect			Other Consumer			Total
Three months ended March 31, 2023
Allowance for credit losses – loans:
Beginning balance	$	12,585		$	14,412		$	3,301		$	608		$	14,238		$	269		$	45,413
Charge-offs		(27	)		—			(63	)		(16	)		(4,620	)		(382	)		(5,108	)
Recoveries		151			2			5			—			2,782			79			3,019
Provision		202			781			970			59			1,717			475			4,204
Ending balance	$	12,911		$	15,195		$	4,213		$	651		$	14,117		$	441		$	47,528