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LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Tables)
 9 Months Ended
Sep. 30, 2024
Loans and Leases Receivable Disclosure [Abstract]  
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:
(In thousands)September 30,
2024		December 31,
2023
Commercial Loans:
Commercial real estate - non-owner-occupied$1,387,593 $1,370,446 
Commercial real estate - owner-occupied320,330 301,860 
Commercial382,507 403,901 
Total commercial loans2,090,430 2,076,207 
Retail Loans:
Residential real estate1,762,395 1,763,378 
Home equity247,968 240,341 
Consumer15,936 18,168 
Total retail loans2,026,299 2,021,887 
Total loans$4,116,729 $4,098,094 
Schedule of Loan Balances by Portfolio Segment
The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated:
(In thousands)September 30,
2024		December 31,
2023
Net unamortized loan origination costs$6,807 $7,113 
Net unamortized fair value mark discount on acquired loans(90)(168)
Total$6,717 $6,945 
Summary of Activity in Allowance for Loan Losses
The following table presents the activity in the ACL on loans for the periods indicated:
Commercial Real Estate
(In thousands)Non-Owner-OccupiedOwner- OccupiedCommercialResidential Real EstateHome EquityConsumerTotal
As of or for the Three Months Ended September 30, 2024
Beginning balance, June 30, 2024
$15,268 $2,166 $5,407 $9,571 $2,311 $689 $35,412 
Charge-offs— — (394)— (1)(27)(422)
Recoveries1 — 108 6 5 21 141 
Provision (credit) for loan losses
552 161 (320)(136)(27)53 283 
Ending balance, September 30, 2024
$15,821 $2,327 $4,801 $9,441 $2,288 $736 $35,414 
As of or for the Nine Months Ended
  September 30, 2024
Beginning balance, December 31, 2023$16,581 $2,290 $4,869 $10,254 $2,217 $724 $36,935 
Charge-offs— — (1,157)— (1)(82)(1,240)
Recoveries9 — 270 19 86 28 412 
(Credit) provision for loan losses(769)37 819 (832)(14)66 (693)
Ending balance, September 30, 2024
$15,821 $2,327 $4,801 $9,441 $2,288 $736 $35,414 
As of or for the Three Months Ended September 30, 2023
Beginning balance, June 30, 2023
$16,155 $2,351 $4,795 $10,627 $2,397 $658 $36,983 
Charge-offs— (58)(255)— — (32)(345)
Recoveries17 — 189 5 1 13 225 
Provision (credit) for loan losses
607 (131)(247)(590)(101)6 (456)
Ending balance, September 30, 2023
$16,779 $2,162 $4,482 $10,042 $2,297 $645 $36,407 
As of or for the Nine Months Ended
  September 30, 2023
Beginning balance, December 31, 2022$17,296 $2,362 $5,446 $9,089 $2,225 $504 $36,922 
Charge-offs— (58)(1,101)(18)— (63)(1,240)
Recoveries19 — 352 38 1 27 437 
(Credit) provision for loan losses(536)(142)(215)933 71 177 288 
Ending balance, September 30, 2023
$16,779 $2,162 $4,482 $10,042 $2,297 $645 $36,407 
As of or for the Year Ended
   December 31, 2023
Beginning balance, December 31, 2022$17,296 $2,362 $5,446 $9,089 $2,225 $504 $36,922 
Charge-offs— (58)(1,560)(18)— (91)(1,727)
Recoveries19 — 471 44 1 31 566 
(Credit) provision for loan losses(734)(14)512 1,139 (9)280 1,174 
Ending balance, December 31, 2023$16,581 $2,290 $4,869 $10,254 $2,217 $724 $36,935 
Credit Risk Exposure Indicators by Portfolio Segment
Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage was as follows as of and for the dates indicated:
(In thousands)
2024
2023202220212020PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term		Total
As of and for the period ended September 30, 2024
Commercial real estate - non-owner-occupied      
Risk rating
Pass (Grades 1-6)$73,912 $99,529 $300,810 $281,030 $109,669 $477,209 $— $— $1,342,159 
Special mention (Grade 7)— — — — 344 228 — — 572 
Substandard (Grade 8)— 124 25,252 — — 19,486 — — 44,862 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - non-owner-occupied$73,912 $99,653 $326,062 $281,030 $110,013 $496,923 $— $— $1,387,593 
Gross charge-offs for the nine months ended
$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner-occupied      
Risk rating
Pass (Grades 1-6)$36,367 $31,354 $50,539 $72,698 $22,643 $96,053 $— $— $309,654 
Special mention (Grade 7)— — — 2,015 — 136 — — 2,151 
Substandard (Grade 8)— 576 394 192 412 6,951 — — 8,525 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - owner occupied$36,367 $31,930 $50,933 $74,905 $23,055 $103,140 $— $— $320,330 
Gross charge-offs for the nine months ended
$— $— $— $— $— $— $— $— $— 
Commercial
      
Risk rating
Pass (Grades 1-6)$62,704 $29,894 $46,422 $32,722 $19,967 $37,439 $110,424 $35,089 $374,661 
Special mention (Grade 7)418 — — — — 95 — — 513 
Substandard (Grade 8)— 1,129 318 183 165 1,428 1,840 2,270 7,333 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial$63,122 $31,023 $46,740 $32,905 $20,132 $38,962 $112,264 $37,359 $382,507 
Gross charge-offs for the nine months ended
$— $145 $47 $20 $51 $764 $80 $50 $1,157 
Residential Real Estate      
Risk rating
Pass (Grades 1-6)$95,442 $161,383 $515,182 $511,182 $210,721 $263,396 $397 $1,182 $1,758,885 
Special mention (Grade 7)— — — — — — — — — 
Substandard (Grade 8)— — — 780 — 2,730 — — 3,510 
Doubtful (Grade 9)— — — — — — — — — 
Total residential real estate$95,442 $161,383 $515,182 $511,962 $210,721 $266,126 $397 $1,182 $1,762,395 
Gross charge-offs for the nine months ended
$— $— $— $— $— $— $— $— $— 
Home equity
      
Risk rating
Performing$3,586 $14,832 $20,783 $449 $305 $14,086 $177,178 $16,088 $247,307 
Non-performing— — — — — 8 244 409 661 
Total home equity
$3,586 $14,832 $20,783 $449 $305 $14,094 $177,422 $16,497 $247,968 
Gross charge-offs for the nine months ended
$— $— $— $— $— $— $1 $— $1 
Consumer
      
Risk rating
Performing$3,323 $3,748 $3,251 $1,261 $459 $2,139 $1,750 $— $15,931 
Non-performing— — — — — 5 — — 5 
Total consumer
$3,323 $3,748 $3,251 $1,261 $459 $2,144 $1,750 $— $15,936 
Gross charge-offs for the nine months ended
$— $40 $15 $14 $5 $1 $7 $— $82 
(In thousands)
2023
2022202120202019PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term		Total
As of and for the year ended December 31, 2023
Commercial real estate - non-owner-occupied
Risk rating:
Pass (Grades 1-6)$103,012 $364,777 $296,152 $146,707 $116,777 $320,101 $— $— $1,347,526 
Special mention (Grade 7)7,997 — — 350 33 3,597 — — 11,977 
Substandard (Grade 8)747 450 — 2,287 114 7,345 — — 10,943 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - non-owner-occupied$111,756 $365,227 $296,152 $149,344 $116,924 $331,043 $— $— $1,370,446 
Gross charge-offs for the year ended
$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner-occupied
Risk rating:
Pass (Grades 1-6)$26,902 $53,550 $76,575 $24,608 $18,728 $89,133 $— $— $289,496 
Special mention (Grade 7)— — 2,355 — — 141 — — 2,496 
Substandard (Grade 8)— 402 320 — — 9,146 — — 9,868 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - owner-occupied$26,902 $53,952 $79,250 $24,608 $18,728 $98,420 $— $— $301,860 
Gross charge-offs for the year ended$— $— $— $— $— $58 $— $— $58 
Commercial
Risk rating:
Pass (Grades 1-6)$41,871 $54,323 $56,102 $24,338 $25,620 $35,442 $119,119 $36,895 $393,710 
Special mention (Grade 7)45 — 152 195 — 101 660 5 1,158 
Substandard (Grade 8)248 588 296 769 955 1,354 2,415 2,408 9,033 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial$42,164 $54,911 $56,550 $25,302 $26,575 $36,897 $122,194 $39,308 $403,901 
Gross charge-offs for the year ended
$— $68 $137 $31 $20 $1,075 $82 $147 $1,560 
Residential Real Estate
Risk rating:
Pass (Grades 1-6)$160,315 $539,835 $540,980 $220,943 $70,917 $226,126 $370 $386 $1,759,872 
Special mention (Grade 7)— — — — — — — — — 
Substandard (Grade 8)— — 963 — 89 2,454 — — 3,506 
Doubtful (Grade 9)— — — — — — — — — 
Total residential real estate$160,315 $539,835 $541,943 $220,943 $71,006 $228,580 $370 $386 $1,763,378 
Gross charge-offs for the year ended
$— $— $— $— $— $18 $— $— $18 
Home equity
Risk rating:
Performing$15,976 $23,104 $547 $324 $4,124 $12,686 $169,416 $13,405 $239,582 
Non-performing— — — — — 11 527 221 759 
Total home equity$15,976 $23,104 $547 $324 $4,124 $12,697 $169,943 $13,626 $240,341 
Gross charge-offs for the year ended
$— $— $— $— $— $— $— $— $— 
Consumer
Risk rating:
Performing$5,525 $4,908 $2,068 $815 $345 $2,279 $2,191 $— $18,131 
Non-performing— — 5 — — 32 — — 37 
Total consumer$5,525 $4,908 $2,073 $815 $345 $2,311 $2,191 $— $18,168 
Gross charge-offs for the year ended$2 $19 $31 $14 $8 $4 $13 $— $91 
Loan Aging Analysis by Portfolio Segment
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and loans past due over 90 days and accruing as of the following dates:
(In thousands)30-59 Days
Past Due		60-89 Days
Past Due		90 Days or Greater
Past Due		Total
Past Due		CurrentTotal Loans
Outstanding		Loans > 90
Days Past
Due and
Accruing
September 30, 2024       
Commercial real estate - non-owner-occupied$— $— $130 $130 $1,387,463 $1,387,593 $— 
Commercial real estate - owner-occupied239 — — 239 320,091 320,330 
Commercial386 984 1,119 2,489 380,018 382,507 — 
Residential real estate299 261 1,037 1,597 1,760,798 1,762,395 — 
Home equity212 159 284 655 247,313 247,968 — 
Consumer62 7 5 74 15,862 15,936 — 
Total$1,198 $1,411 $2,575 $5,184 $4,111,545 $4,116,729 $— 
December 31, 2023       
Commercial real estate - non-owner-occupied$44 $41 $184 $269 $1,370,177 $1,370,446 $— 
Commercial real estate - owner-occupied655 — — 655 301,205 301,860 — 
Commercial1,153 1,199 1,155 3,507 400,394 403,901 — 
Residential real estate1,317 322 1,094 2,733 1,760,645 1,763,378 — 
Home equity521 451 301 1,273 239,068 240,341 — 
Consumer85 8 5 98 18,070 18,168 — 
Total$3,775 $2,021 $2,739 $8,535 $4,089,559 $4,098,094 $— 
Financing Receivable, Nonaccrual
The following table presents the amortized cost basis of loans on non-accrual status by portfolio segment as of the dates indicated:
September 30,
2024
December 31,
2023
(In thousands)Non-Accrual Loans With an AllowanceNon-Accrual Loans Without an AllowanceTotal Non-Accrual LoansNon-Accrual Loans With an AllowanceNon-Accrual Loans Without an AllowanceTotal Non-Accrual Loans
Commercial real estate - non-owner-occupied$130 $— $130 $261 $— $261 
Commercial real estate - owner-occupied— — — 125 — 125 
Commercial2,057 — 2,057 1,725 — 1,725 
Residential real estate2,497 — 2,497 2,541 — 2,541 
Home equity661 — 661 759 — 759 
Consumer5 — 5 37 — 37 
Total$5,350 $— $5,350 $5,448 $— $5,448 

Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms is estimated to have been $44,000 and $34,000 for the three months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024 and 2023, the interest income that is estimated to have been recognized if loans on non-accrual status had been current in accordance with their original terms was $148,000 and $84,000, respectively.

The Company's policy is to reverse previously recorded accrued interest income when a loan is placed on non-accrual, as such, the Company did not record any interest income on its non-accrual loans for the three and nine months ended September 30, 2024 and 2023.

Collateral-dependent loans are loans for which repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment. The following table presents the amortized cost basis of collateral-dependent loans by portfolio segment and collateral type, as of the dates indicated:

September 30,
2024
December 31,
2023
Collateral Type
Total Collateral -Dependent Loans
Collateral Type
Total Collateral -Dependent Loans
(In thousands)Real EstateOther CollateralReal Estate Other Collateral
Commercial real estate - non-owner occupied$4,457 $— $4,457 $4,494 $— $4,494 
Commercial
— 528 528 671 — 671 
Total$4,457 $528 $4,985 $5,165 $— $5,165 
Troubled Debt Restructuring The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable as of September 30, 2024, is also presented below:
(In thousands)
Principal Forgiveness
Payment Delay
Term Extension
Interest Rate Reduction
Combination Term Extension and Principal Forgiveness
Combination Term Extension and Interest Rate Reduction
Total % of Portfolio
Commercial$— $— $407 $— $— $— 0.1 %

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2024:
(In thousands)
Principal ForgivenessWeighted Average Interest Rate Reduction Weighted Average Term Extension (Years)
Commercial
$— — %1.0